Corteva, Inc. · NYSE:CTVA
Corteva — Corteva Agriscience — Investor Day (November 2018)
28 slides from Corteva's investor day presentation, Nov 8, 2018
Slide 1: Delivering Growth
Delivering Growth Rajan Gajaria Executive Vice President, Business Platforms November 8, 2018 Agriculture Division of DowDuPont 1
Slide 2: Measuring Progress Against our Five Priorities
Measuring Progress Against our Five Priorities Five Priorities Key Indicators 01 Instill a strong culture Collaborate to deliver business results Align R&D investments and capital 02 Drive discipline 0 allocation to business priorities 03 Develop innovative solutions Rapidly ramp up new technology D
Slide 3: Strong Position in Highest Value Markets
Strong Position in Highest Value Markets Global Seed Market Global opportunity Market Share by Crop for future growth Seed Market GM & Conventional 100% 80% Corn 60% 44% Seed Market Leadership 40% N.A. Soybean #1 Corn 20% 0% Soybeans N.A. Corn #1 1 2013 2 2014 3 2015 4 2016 5 2017 19% 100% Brazil Co
Slide 4: Highly Differentiated in Seed Genetics and Product Development
Highly Differentiated in Seed Genetics and Product Development Seed Pro-Forma Net Sales by Segment Overview Market Segment Cotton Other Canola 2% 5% 3% Sunflower 70+ 10+ 4% countries crops Soybean 20% ▪ Grow and drive route-to-market advantages $8.1B 2017 Sales ▪ Advance and enable product launches
Slide 5: Accelerating Growth and Profitability through Competitive Advantages in Seed
Accelerating Growth and Profitability through Competitive Advantages in Seed 1 2 3 Customer Focus Innovation Advantage Cost-Competitive Operations Deliver above-market Develop innovative Drive disciplined capital growth via robust new solutions that improve and resource allocation product pipeline a
Slide 6: Customer Focus: Greater Choice & Value
Customer Focus: Greater Choice & Value 1 Multiple Brands Four Differentiated Channels Premium Global Seed Brands Pioneer Agency Model Exclusive to Pioneer – direct to farmer via independent sales representatives Regional Brands Regional & Retail Seed Brands Connect to customers through regional bran
Slide 7: Strong, Diverse and Advanced Breeding Engine
Strong, Diverse and Advanced Breeding Engine 2 Global R&D Engine – Combined Strength Local Approach Product Characterization & Advancement Global Germplasm Enabling Technologies Talented People Right Product, Right Acre Leverage Global Resources to Breed for Local Needs Agriculture Division of DowDu
Slide 8: Advancing Trait Launches
Advancing Trait Launches 2 2018 2019-2022 Note: Pending applicable regulatory reviews. Agriculture Division of DowDuPont 8
Slide 9: Strengthening our Portfolio of Proprietary Traits
Strengthening our Portfolio of Proprietary Traits 2 Enlist Traits targeting over ~$1B of peak sales Progress on Enlist Trait Launches Enlist cotton Enlist corn Enlist E3 soybeans launched in commercially – focus on 2017 available in 2018 upcoming launch Stacked with Industry-Leading Traits * Enlist
Slide 10: Enhancing our Competitive Advantages
Enhancing our Competitive Advantages 2 In a bag of seed: Seed Applied Technology - ++ +++ Biotechnology: Traits ++ + +++ Base Genetics: Germplasm + +++ +++ - = Licensed/Partnered += Basic ++ = Good to excellent +++ = Industry leading Agriculture Division of DowDuPont 10
Slide 11: Cost-Competitive Operations & Best-in-Class Grower Network
Cost-Competitive Operations & Best-in-Class Grower Network 3 Optimized Global Footprint – Focus on Site Utilization Strong Relationships, Strong Seed Yields Best Growing Areas and Global Support / Growers Regional Responsive Supply Chains 30+ 120+ 5,000+ Best-in-class countries Seed Seed production
Slide 12: Granular: Improving Farm Profitability with Software
Granular: Improving Farm Profitability with Software CURRENT PRODUCT FOCUS Better decisions across ▪ Operations ▪ Agronomy = Higher Farm Profitability ▪ Financials GROWTH PRIORITIES ▪ Global scale with Corteva ▪ Connecting farms online to ag value chain CORTEVA VALUE ▪ Standalone ▪ More compelling p
Slide 13: Crop Protection Market Overview
Crop Protection Market Overview ~$50B Crop Protection Market Attractive Market Segments Corteva Crop Protection Market Share Versus Market Opportunity 20,000 18,000 Fruit & Vegetables 16,000 Fruits & 14,000 Soybeans Vegetables Rice Cereal Market Value $MM USD 12,000 Cereals ~$15B Opportunity ~$5B Op
Slide 14: Bringing Together the Best of Two Crop Protection Pipelines
Bringing Together the Best of Two Crop Protection Pipelines Crop Protection Net Sales Segment Overview by Market Segment Fruits & Vegetables 100+ 65 130+ Other(1) 19% crops active countries 31% ingredients $6.1B Soybeans 2017 Sales 15% ▪ Launch & rapid ramp-up of new technology ▪ Drive competitive c
Slide 15: Expanding Leadership Position in ~$50B Crop Protection Market
Expanding Leadership Position in ~$50B Crop Protection Market 1 2 3 Rapid ramp-up of new Driving competitive Best-owner mindset technology cost advantage Develop innovative Drive disciplined capital and Deliver best-in-class cost solutions resource allocation structure › Deliver revenue growth from
Slide 16: Rapidly Ramping Up New Crop Protection Technology
Rapidly Ramping Up New Crop Protection Technology 1 Driving above-market growth for the business Deliver ~$2B Realize ~$3.8B Deliver peak of estimated + of estimated + sales targets revenue growth peak sales From new From pipeline launches by 2022 Making prioritized innovation investments and delive
Slide 17: U.S. EPA Green Chemistry Challenge Award Winner
Differentiation • Low use rates • Effective resistance management tool • Alternative Mode of Action for broad spectrum weed control • Favorable environmental profile U.S. EPA Green • Diverse use in multiple crops (rice, corn) Chemistry Challenge and pasture Award Winner • Controls grasses, broadleaf
Slide 18: New blockbuster technology in cereals, OSR and sunflower market
Differentiation • New blockbuster technology in the cereals, OSR and sunflower market • Innovative resistance management tool from a novel area of chemistry • Superior performance against most hard-to-control weeds • Creating a new value in OSR, sunflower and fallow • Low use rates Launched 2017 Tar
Slide 19: Novel fungicide for management of key diseases in cereals
Differentiation • Novel fungicide for the management of key diseases in cereals with additional development in banana • New naturally derived fungicide • Favorable regulatory profile Est. Launch 2019 Targeting peak sales of ~$300 MM Note: Pending applicable regulatory reviews. Agriculture Division o
Slide 20: Driving a Best-Owner Mindset
Driving a Best-Owner Mindset 2 Transitioning to differentiated portfolio through disciplined portfolio management Portfolio Cross Inorganic Rationalization Licensing Growth 2017 Pro-Forma Sales 2022E Sales Patented Patented Patented & 11% 34% Differentiated 50% Off-Patent 89% Off-Patent Cost 66% Adv
Slide 21: Delivering Competitive Cost Advantages
Delivering Competitive Cost Advantages 3 Focus on increasing return on invested capital and accelerating cost synergy delivery Manufacturing Asset Working Capital Cost Synergies Strategies Improvement Meet or exceed cost- Focus on CapEx ROI Inventory Optimization synergy targets Agriculture Division
Slide 22: Leveraging Opportunities Across Business Platforms
Leveraging Opportunities Across Business Platforms Seed Applied Nutrient Customer & EnlistTM System Digital Ag Technology Management Farmer-Centric Corteva Agriscience™ Advantage Innovation Across Crop Health & Integrated Solutions Complete Solution Segments Sustainability Agriculture Division of Do
Slide 23: Measuring Progress Against our Five Priorities
Measuring Progress Against our Five Priorities Five Priorities Key Indicators 01 Instill a strong culture Collaborate to deliver business results Align R&D investments and capital 02 Drive discipline 0 allocation to business priorities 03 Develop innovative solutions Rapidly ramp up new technology 0
Slide 24: Rajan Gajaria
› Rajan joined Dow AgroSciences as a joint venture partner in Mumbai, India. He held various roles in sales & marketing, as well as human resources, before moving to the company’s global headquarters in Indianapolis, Indiana. He built his career through series of leadership roles in corporate strate
Slide 25: 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 26: 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 27: 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 28: 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