Slide 1: 1Q 2023 Earnings Conference Call
1Q 2023 Earnings Conference Call May 4, 2023
Slide 2: Safe Harbor Regarding Forward-Looking Statements
Safe Harbor Regarding Forward-Looking Statements Forward-Looking Statements This presentation contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, whi
Slide 3: A Reminder About Non-GAAP Financial Measures
A Reminder About Non-GAAP Financial Measures Regulation G (Non-GAAP Financial Measures) This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. These measures may include organic sales, organic growth (including by segment and region), operatin
Slide 4: CEO Messages: Raised 2023 Outlook Fully Aligns with 2025 Value Creation Plan
CEO Messages Delivered double digit organic(1) sales growth and >260 basis points of Operating Strong 1Q EBITDA margin(1) expansion Financial Committed to balanced capital allocation strategy, 1Q deployed to M&A and returned Performance ~$360 million to shareholders Positive Farmer incomes rem
Slide 5: Crop Sector Market Outlook
Crop Sector Market Outlook Global Stocks-to-Use Ratio Corn and Soybeans Global Grain and Oilseed Stocks Remain Tight Weather pressures in Northern Hemisphere and Argentina 35% Agricultural Commodity Prices Historically Strong Due to the tight commodity inventories 25% Supply Chains Mostly Restor
Slide 6: Value Creation Framework
Value Creation Framework Acquired Operational Stoller and Estimated Excellence Symborg $100M royalty reduction in Improvement in 2023 driven by Product Mix SG&A as Investing for Enlist percent of sales Growth and and focused cost Profitability Announced Royalty >60% of Crop actions strategic N
Slide 7: 1Q 2023 Financial Performance
1Q 2023 Financial Performance Metric 1Q 2023 Highlights Net Sales $4.88B 6% Strong demand for advantaged technologies in Seed and Crop Protection 10% Organic(1) growth in NA(2), EMEA(2) more than Organic(1) Sales $5.06B offset weather-related impacts in LATAM Pricing, new technology, and productivit
Slide 8: 1Q 2023 Sales Highlights
1Q 2023 Sales Highlights Global Net Sales 1Q 2023 Sales by Segment Seed Crop Protection $4.9B $4.6B $2.7B Reported $2.2B 6% $2.5B Organic(1) $2.1B 10% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Reported Organic(1) Reported Organic(1) 7% 10% 5% 10% Double-Digit Organic Growth in Both Segments (1
Slide 9: 1Q 2023 Operating EBITDA Drivers
1Q 2023 Operating EBITDA(1) Drivers 1Q 2023 Bridge Key Drivers Price/Mix and Volume ($ in millions) Pricing for value and to offset higher input costs and currency $644 ($12) ($289) ~$140M of incremental new Crop Protection product sales Volume impacted by strategic product and Russia exits ($
Slide 10: Raised 2023 Guidance
Raised 2023 Guidance(1) Net Sales Operating EBITDA(2) $18.6 - $18.9B $3.55 – $3.75B +13% at mid-point +7% at mid-point Op. EBITDA Margin(2) +100 bps Operating EPS(2) Free Cash Flow(2) $2.80 - $3.00 $1.2 – $1.4B +9% at mid-point CFFO $1.8 - $2.0B Raising FY Guidance, Includes Biologicals Acquisitions
Slide 11: 1H Outlook and Full Year 2023 Guidance
1H Outlook and Full Year 2023 Guidance(1) 1H Outlook FY Guidance Increased U.S. corn acres, shortened Safrinha Favorable product mix driving higher quality season earnings Volume growth muted by ~$430M of strategic Normalized timing of LATAM revenue, weighted product / Russia exits towards 2
Slide 12: Key Takeaways
Key Takeaways EMEA(1) and North America(1) Lead Strong Performance in 1Q 1H / 2H Outlook Reflects Supply Chain Improvements, Normalized Trends Raised Full Year Earnings Guidance, Includes Biologicals Acquisitions Corteva Differentiation Continues to Deliver Value (1) North America is defined as U.S.
Slide 13: Corteva R&D Innovation Update
Corteva R&D Innovation Update When: May 9, 2023 (9:30-11:00 AM ET) Where: Virtual (see registration link on IR website) Presentations by: Chuck Magro, Chief Executive Officer Sam Eathington, Chief Technology and Digital Officer Key Themes: Corteva’s Position as Technology Growth Compan
Slide 14: Appendix
Appendix QS agriscience 14
Slide 15: 1Q 2023 Highlights
1Q 2023 Highlights ($ in millions, except EPS) 1Q 2022 1Q 2023 Change Net Sales $4,601 $4,884 +6% GAAP Income from Continuing Operations After Income Taxes $577 $607 +5% Operating EBITDA(1) $1,039 $1,231 +18% Operating EBITDA Margin(1) 22.6% 25.2% +262 bps GAAP EPS from Continuing Operations $0.79 $
Slide 16: 1Q 2023 Seed Performance Highlights
1Q 2023 Seed Performance Highlights ($ in millions) 1Q 2023 vPY 1Q 2023 Revenue by Product Line Net Sales $2,695 +7% Organic(1) Sales Growth +10% Other(4) Operating EBITDA $652 +15% Other oilseeds(3) Operating EBITDA Margin 24.2% + 165 bps 9% reported growth 13% organic(1) growth Corn 3% reported gr
Slide 17: 1Q 2023 Regional Net Sales Highlights – Seed
1Q 2023 Regional Net Sales Highlights – Seed North Latin Organic(1) Global Net Sales Reported Organic(1) Reported America(2) 12% 12% America 20% 24% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Net Sales ($M) $1,184 $1,323 Net Sales ($M) $323 $259 $2.7B Volume Price/Mix Currency Portfolio $2.5B Volume Price/Mix
Slide 18: 1Q 2023 Crop Protection Highlights
1Q 2023 Crop Protection Highlights ($ in millions) 1Q 2023 vPY 1Q 2023 Revenue by Product Line Net Sales $2,189 +5% Organic(1) Sales Growth +10% Fungicides Other(3) Operating EBITDA $603 +23% 18% reported growth Operating EBITDA Margin 27.5% +391 bps 27% organic(1) growth Crop Protection Operating E
Slide 19: 1Q 2023 Regional Net Sales Highlights – Crop Protection
1Q 2023 Regional Net Sales Highlights – Crop Protection North Reported Organic(1) Latin Reported Organic(1) Global Net Sales 7% 8% 10% 17% America(2) America 1Q 2022 1Q 2023 1Q 2022 1Q 2023 $2.2B Net Sales ($M) $821 $879 Net Sales ($M) $327 $293 $2.1B Volume Price/Mix Currency Portfolio Volume Price
Slide 20: 1Q 2023 Operating EPS Variance
1Q 2023 Operating EPS(1) Variance Operating EPS(1) Bridge ($) $0.72 $(0.33) $(0.06) $0.02 $(0.19) $0.03 $1.16 $0.97 1 2 3 4 5 6 1Q 2022 Volume/ Costs Change in Base EGL(2) Currency Portfolio / 1Q 2023 Price Tax Rate(1) Other Volume & Price/Mix 1 Costs 2 Change in Base Tax Rate(1) 3 Gains driven by
Slide 21: 2023 Operating EBITDA Bridge
2023 Operating EBITDA(1) Bridge 2023 Bridge Key Drivers Organic(1) Growth ($ in millions) Mid-single digit pricing for total Company U.S. corn and soy ~180M acres with bias towards corn Russia exit(2) ~$200M headwind to Seed sales Crop Protection ~$300M growth from new products Crop Protec
Slide 22: FY 2023 Modeling Guidance – Operating Earnings Per Share
FY 2023 Modeling Guidance – Operating Earnings Per Share(1) ($ in millions, except where noted) Guidance Depreciation and Post-Merge Amortization (590 - 610) Net Interest (Expense) Income (65 – 85) Base Income Tax Rate(1) 22% - 24% Exchange Losses – net, after tax (200 – 220) Net Income – Non-contro
Slide 23: Growing Biologicals Market
Growing Biologicals Market Fast Growing Market Why Corteva Can Win • Biologicals market growing with CAGR of Innovation and Commercial Capabilities 8 - 10% from 2021 to 2035 • Excellence in natural products discovery • Formulation expertise to develop effective • 2021 addressable market size estimat
Slide 24: Non-GAAP Calculation of Corteva Operating EBITDA
Corteva Non-GAAP Calculation of Corteva Operating EBITDA Three Months Ended March 31, 2023 2022 In millions As Reported Margin % As Reported Margin % Income (loss) from continuing operations, net of tax (GAAP) $ 607 12.4% $ 577 12.5% Provision for (benefit from) income taxes on continuing operations
Slide 25: Corteva Segment Information
Corteva Segment Information Net sales by segment Thre e Months Ended March 31, In millions 2023 2022 Seed $ 2,695 $ 2,524 Crop Protection 2,189 2,077 Total ne t sale s $ 4,884 $ 4,601 Net Margin (GAAP) Thre e Months Ended March 31, $ In millions 2023 2022 Income (loss) from continuing operations aft
Slide 26: Corteva Significant Items (Pretax)
Corteva significant items (Pretax) Three Months Ended March 31, In millions 2023 2022 Seed Restructuring and asset-related charges - net $ (21) $ (5) Inventory write-offs (4) - Seed sale associated with Russia Exit 19 - Total Seed $ (6) $ (5) Crop Protection Restructuring and asset-related charges -
Slide 27: Segment Information - Price, Volume Currency Analysis by Region
Segment Information - Price, Volume Currency Analysis Region Q1 2023 vs. Q1 2022 Percent Change Due To: 2 Net Sales Change (GAAP) Organic Change (Non-GAAP) $ (millions) % $ (millions) % Price & Product Mix Volume Currency Portfolio / Other 1 North America $ 197 10% $ 206 10% 7% 3% -% -% 1, 3 EMEA 23
Slide 28: Segment Information - Price, Volume Currency Analysis by Product Line
Corteva Segment Information - Price, Volume Currency Analysis Seed Product Line Q1 2023 vs. Q1 2022 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP)2 $ (millions) % $ (millions) % Price & Product Mix Volume Currency Portfolio / Other 3 Corn $ 49 3% $ 127 7% 17% (10)% (5)% 1%
Slide 29: Non-GAAP Calculation of Corteva Operating EPS
Corteva Non-GAAP Calculation of Corteva Operating EPS Three Months Ended December 31, 2023 2022 2023 2022 $ (millions) $ (millions) EPS (dilute d) EPS (diluted) Income (loss) from continuing operations attributable to Corteva (GAAP) $ 603 $ 574 $ 0.84 $ 0.79 1 Less: Non-operating benefits (costs), a
Slide 30: Non-GAAP Calculation of Corteva Base Tax Rate
Corteva Non-GAAP Calculation of Corteva Base Tax Rate Three Months Ended March 31, 2023 2022 Income (loss) from continuing ope rations be fore income taxes (GAAP) $ 776 $ 698 Add: Significant items (benefit) charge 83 22 Non-operating (benefits) costs 43 (65) Amortization of intangibles (existing as
Slide 31: Non-GAAP Calculation of Free Cash Flow
Corteva Non-GAAP Calculation of Free Cash Flow RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions) 2023 RECONCILIATION OF CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES TO Low End High End FREE CASH FLOW ¹ Cash provided by (used for) operating activities (GAAP) $ 1,800 $ 2,000 Le
Slide 32: Product Disclosures
Product Disclosures TM ® SM Trademarks and service marks of Corteva Agriscience and its affiliated companies. © 2021 Corteva The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Corteva Agriscience LLC and M.S. Technologies, L.L.C. The Enlist weed control system is o