Corteva, Inc. · NYSE:CTVA
Corteva — Corteva Agriscience — Investor Day (November 2018)
33 slides from Corteva's investor day presentation, Nov 8, 2018
Slide 1: CEO’s Perspective
CEO’s Perspective Jim Collins, Chief Executive Officer November 8, 2018 Agriculture Division of DowDuPont 1
Slide 2: Introduction to Corteva
Introduction to Corteva Jennifer Driscoll, Investor Relations Lead Agriculture Division of DowDuPont 2
Slide 3: Safe Harbor and Non-GAAP Statements
Safe Harbor and Non-GAAP Statements Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend
Slide 4: Safe Harbor and Non-GAAP Statements (cont’d)
Safe Harbor and Non-GAAP Statements (cont’d) These risks are and will be more fully discussed in the current, quarterly and annual reports and preliminary registration statement on Form 10 filed with the U. S. Securities and Exchange Commission by DowDuPont or the Company, as applicable. While the l
Slide 5: Safe Harbor and Non-GAAP Statements (cont’d)
Safe Harbor and Non-GAAP Statements (cont’d) Regulation G This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. These measures includes Corteva pro forma operating EBITDA. DowDuPont and Corteva's management believes that these non-GAAP measur
Slide 6: Agenda
Overview of Corteva Agriscience™ Jim Collins Financial Review Greg Friedman Question & Answer Session / Break Seed and Crop Protection Solutions AGENDA Rajan Gajaria Commercial Organization Tim Glenn Research & Development Neal Gutterson Question & Answer Session / Adjourn Agriculture Division of Do
Slide 7: CEO’s Perspective
CEO’s Perspective Jim Collins, Chief Executive Officer Agriculture Division of DowDuPont 7
Slide 8: One Company, One Culture, One Focus: Enabling Farmers to Meet Record Demand
One Company, One Culture, One Focus: Enabling Farmers to Meet Record Demand Global footprint, broad offerings, advantaged route to market 20,000+ 100+ 130+ Corteva Colleagues Production & Mfg. Facilities Countries AgriscienceTM is a leading, U.S.-based, 140+ 65+ ~13,000 R&D Facilities Active Ingredi
Slide 9: World-Class Business Focused on Shareholder Value
World-Class Business Focused on Shareholder Value Accomplishments Since the Merger Value ▪ >$400 million in YoY savings in 2018 Value ▪ Total merger-related cost synergy target: Capture Capture $1.2 billion Operating ▪ Optimized facility footprint Model ▪ Implemented & trained employees on new Trans
Slide 10: Corteva’s Strategy
We provide farmers with the right mix of seeds, crop protection and digital solutions to Corteva’s maximize their yields and improve their Strategy profitability, while strengthening customer relationships and ensuring an abundant food supply for a growing global population. Agriculture Division of
Slide 11: Five Priorities for Shareholder Value Creation
01 02 03 Instill a strong Drive disciplined Develop culture capital allocation innovative FIVE solutions PRIORITIES 04 05 for Shareholder Attain best-in- Deliver above- Value Creation class cost market growth structure Agriculture Division of DowDuPont 11
Slide 12: Our Path Forward to Shareholder Value Creation
Our Path Forward to Shareholder Value Creation 2018-2019 2020-2022 2023+ SPIN ADVANCE ACCELERATE SHAPE THE June 2019 (1) THE CORE GROWTH FUTURE › Create new › Improve › Launch products value for margins, and services customers & accelerate pipeline, capture industry through momentum growth synergies
Slide 13: Our Path Forward: Advance the Core
Our Path Forward to Shareholder Value Creation 2018-2019 2020-2022 2023+ SPIN ADVANCE ACCELERATE SHAPE THE June 2019 (1) THE CORE GROWTH FUTURE › Capture our cost › Pursue #1 or #2 share › Infuse a Market Shaper synergies › Rationalize portfolio culture: shape the › Enhance how we serve › Drive oper
Slide 14: Our Path Forward: Accelerate Growth
Our Path Forward to Shareholder Value Creation 2018-2019 2020-2022 2023+ SPIN ADVANCE ACCELERATE SHAPE THE June 2019 (1) THE CORE GROWTH FUTURE › Maximize value of global pipeline: › Capture $500 million in expected launch new products targeting $9 merger-related growth synergies billion in peak sal
Slide 15: Our Path Forward: Shape the Future
Our Path Forward to Shareholder Value Creation 2018-2019 2020-2022 2023+ SPIN ADVANCE ACCELERATE SHAPE THE June 2019 (1) THE CORE GROWTH FUTURE › Invest in new technologies › Scale external › Achieve balanced trait strategy, partnerships/collaborations more patented molecules › Invest in new value p
Slide 16: Corteva Agriscience: Investment Thesis
Corteva Agriscience™: Investment Thesis 1 A global market leader operating in attractive agriculture markets 2 Unique, direct relationships with farmers 3 Focus on high-value products 4 World-class innovator: track record & strong pipeline 5 Cost & growth synergies with stable financial profile 6 Ma
Slide 17: A Global Market Leader in Seed
A Global Market Leader in Seed: 1 No. 1 or No. 2 Share in Most Major Agriculture Markets Top Global Seed Companies #1 Seed sales 2017 ($B) CORN: $11 66% of $8 Seed Sales #1 $3 $2 $1 SOYBEAN: 20% of Bayer Corteva Syngenta BASF KWS Seed Sales Digital Solutions For Farmer Productivity Enhance Seed Offe
Slide 18: A Global Market Leader in Crop Protection
A Global Market Leader in Crop Protection 1 Herbicides Insecticides 25.0% 20.0% 19.0% #1 18.0% 20.0% 16.0% 20.0% 18.0% 14.0% ▪ Naturally Derived 15.0% 14.0% 12.0% 11.0% 11.0% Insecticides 10.0% (Organic Qualified) 10.0% 8.0% ▪ Below Ground 10.0% 8.0% 6.0% Nitrogen Stabilizers 5.0% 4.0% 2.0% ▪ Pastur
Slide 19: Attractive Markets With Strong Secular Trends
Attractive Markets With Strong Secular Trends 1 Arable land per World population (bn) While a rising capita (ha) +2bn in 2015-2050 0.5 10.0 global Developing 0.4 8.0 0.3 6.0 countries population 0.2 4.0 Developed puts pressure 0.1 2.0 countries 0.0 0.0 on yields… 1960 1965 1970 1975 1980 1985 1990 1
Slide 20: Attractive Markets With Strong Secular Trends
Attractive Markets With Strong Secular Trends 1 Agriculture continues to enjoy long-term secular trends across multiple crops MMT MMT Corn 800 Wheat 1,000 600 800 600 400 400 200 200 0 0 1992 1997 2002 2007 2012 2017 1992 1997 2002 2007 2012 2017 MMT MMT Soybean 2,500 Fruit/Vegetables 400 2,000 300
Slide 21: Direct Relationships with Farmers: Serving Them How They Prefer to be Served
Direct Relationships with Farmers: 2 Serving Them How They Prefer to be Served Multiple Brands Four Differentiated Channels Premium Global Seed Brands Pioneer Agency Model Exclusive to Pioneer – direct to farmer via independent sales representatives Regional & Retail Seed Brands Regional Brands Conn
Slide 22: Focus on High-Value Products to Meet Farmers’ Needs
Focus on High-Value Products to Meet Farmers’ Needs 3 Seed Crop Protection Fruits & Veggies Breakdown Corn Soybean Soybeans Sales Cereals 2017 $8.1B Sunflower Canola $6.1B Pasture and Land Management Corn (1) Cotton Other Rice Other (2) Products / Brands Note: Sales are on a pro forma basis prepared
Slide 23: Positioned to Provide Complete Solutions
Positioned to Provide Complete Solutions 3 Broader product and service offering enabled by our R&D capabilities and robust pipeline ON THE FARM Crop Digital / ON THE SEED Protection Agronomy IN THE SEED Seed Applied Technology Breeding Biotech Agriculture Division of DowDuPont 23
Slide 24: Extensive Seed New Product Pipeline
Extensive Seed New Product Pipeline 4 Launches Through 2021 TRAIT CROPS GEOGRAPHIES TRAIT CROPS GEOGRAPHIES Corn North America Canola Canada Cotton, Corn, U.S., Latin Corn North America Soy America Corn Latin America Soy Latin America Next Gen Corn U.S. Waxy Canola Canada Canola Canada Canada, Sunfl
Slide 25: Complimenting New Crop Protection Products
…Complimenting New Crop Protection Products 4 New Product Launches Through 2021 PRODUCT CROPS GEOGRAPHIES PRODUCT CROPS GEOGRAPHIES Cereal, Oilseed Rape, All Regions Soy Brazil Sunflower Cotton, Corn, USA Rice Asia Pacific Soy Latin America Europe Soy, Fruit, Cereal, Latin America Vegetables, All Re
Slide 26: Supported by a Solid, Expanding Digital Solutions Offering
Supported by a Solid, Expanding Digital Solutions Offering 4 New Product Launches Through 2021 •Granular® •Advanced •AcreValue™ •Advanced Farm satellite marketplace business and Management imagery •International agronomy Software applications expansions recommendation (FMS) •Combined FMS •Enable onl
Slide 27: Merger-Related Synergies and Strong Financial Profile
Merger-Related Synergies and Strong Financial Profile 5 Pro Forma Net Sales STRONG POSITION Growth: 1.5% • Merger-related ($ in mn) Steady $14,122 synergies of $1.7 billion in EBITDA, including ~$1.2 billion in cost and $500 2017 2018E million in growth Pro Forma Operating EBITDA (1) Up Mid Single s
Slide 28: Management Team with Deep Experience
Management Team with Deep Experience Years at Corteva™ or predecessor companies / Years in industry 6 Jim Collins (34 / 34) Neal Gutterson, Ph.D. (4 / 36) CEO SVP and Chief Technology Officer Greg Friedman (17 / 10) Krysta Harden (2 / 30) Executive VP, CFO SVP, Ext. Affairs, Chief Sustainability Off
Slide 29: Five Priorities for Shareholder Value Creation
01 02 03 Instill a strong Drive disciplined Develop culture capital allocation innovative FIVE solutions PRIORITIES 04 05 for Shareholder Attain best-in- Deliver above- Value Creation class cost market growth structure Agriculture Division of DowDuPont 29
Slide 30: The Future of Corteva
THE FUTURE OF Standalone Accelerate Trait Culture Growth Independence Great Low Cost Delivering People Structure Pipeline Agriculture Division of DowDuPont 21
Slide 31: Important Notices
Important Notices Spinetoram Aminopyralid HL & XT DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO SOYBEANS WITH Roundup Ready 2 Xtend® technology unless you use a dicamba herbicide Herculex® Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. Herculex® and the HX logo are registered trad
Slide 32: Jim Collins
James C. Collins, Jr. will be the chief executive officer of Corteva. He was previously chief operating officer for the Agriculture Division of DowDuPont. Prior to the DowDuPont merger, he was an executive vice president at DuPont responsible for the company’s Agriculture segment, including DuPont C
Slide 33: Jennifer Driscoll, Investor Relations Lead
Jennifer K. Driscoll will be the leader of Investor Relations for Corteva. She is currently director of Investor Relations for DuPont. Prior to joining the company in 2015, she was vice president of investor relations at Campbell Soup for six years. Earlier, Mrs. Driscoll was vice president of inves