Corteva, Inc. · NYSE:CTVA
Corteva — DowDuPont — BMO Capital Markets 13th Annual Farm to Market Conference 2018
25 slides from Corteva's conference presentation, May 17, 2018
Slide 1: BMO Capital Markets Farm to Market Conference
BMO Capital Markets Farm to Market Conference Jim Collins Chief Operating Officer, Corteva AgriscienceTM, Agriculture Division of DowDuPont May 17, 2018
Slide 2: Forward-Looking 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 amended. In this context, forward-looking
Slide 3: Enabling the Industry to Meet Record Demand
ENABLING THE INDUSTRY TO MEET RECORD DEMAND LEADING THE WAY TO THE FUTURE OF AGRICULTURE Connecting the dots across Providing innovative and Contributing to responsible the value chain, comprehensive solutions agriculture that promotes collaborating with all enabling farmers to meet stewardship and
Slide 4: Strong Fundamentals, Unique Opportunity
STRONG FUNDAMENTALS, UNIQUE OPPORTUNITY Leadership Balanced Opportunities Significant cost Strong pipeline position in key portfolio and to expand and growth and innovation market scale to geographic synergies capabilities segments outperform reach Agriculture Division of DowDuPont 4
Slide 5: Weather-Related Drivers Shift Earnings into 2Q 2018
WEATHER-RELATED DRIVERS SHIFT EARNINGS INTO 2Q 2018 U.SU.S. Corn Planting Corn Progress Planting Progress Second Quarter 2018 Outlook MARKET SHARE Net sales increase of low- twenties percent and operating EBITDA increase of high-thirties percent First MARKET Half 2018 Outlook SHARE Net sales decreas
Slide 6: A Complete Solution for the Farmer
A COMPLETE SOLUTION FOR THE FARMER Industry-leading capability and product pipeline built for growth DIGITAL TARGETED CROP SEED APPLIED DIGITAL AGRONOMIC BIOTECH BREEDING BREEDING PROTECTION TECHNOLOGY SOLUTIONS SOLUTIONS World-class unified R&D capabilities driving Solving customer challenges with
Slide 7: Three Horizons of Growth
OUR PATH TO INDUSTRY-LEADING VALUE CREATION 3 2022+ SHAPE THE FUTURE Create new value for customers and industry through novel business models, products, and services Three 2019-2021 2 Horizons ACCELERATE GROWTH of Growth Intended Spin ~6/1/19* Launch products and services pipeline, capture growth s
Slide 8: Build Momentum (2017-2018)
BUILD MOMENTUM (2017-2018) IMPROVE MARGINS, LAUNCH NEAR-TERM PIPELINE, SPIN PREPARATION DELIVER COST LAUNCH LEVERAGE MULTI-BRAND ADVANCE SYNERGIES PIPELINE AND MULTI-CHANNEL PREPARATION TO CAPABILITIES INTENDED SPIN* • Achieve 75% of run rate • ~$4.5B peak sales • Align brands to channels to • Solid
Slide 9: Accelerate Growth (2019-2021)
ACCELERATE GROWTH (2019-2021) LAUNCH PIPELINE, ADVANCE GROWTH SYNERGIES LAUNCH PIPELINE ADVANCE ~$500 MILLION OF GROWTH SYNERGIES • ~$4.5B peak sales opportunity from • Innovation and Technology 2019-2021 launches; in addition to ~$4.5B from launches in 2017-2018 • Portfolio • 9 Seed technologies •
Slide 10: Multi-Channel, Multi-Brand Seed Strategy
MULTI-CHANNEL, MULTI-BRAND SEED STRATEGY COMPLETE GO-TO-MARKET APPROACH TO DRIVE GROWTH GLOBAL MARKET DIRECT SHARE U.S. REGIONAL MARKET SHARE GLOBAL RETAIL MARKET SHARE Strengthen premium 5 regional seed brands, Strong retail brands Pioneer® brand offered geographically anchored: enhanced by strengt
Slide 11: Shape the Future (2022+)
SHAPE THE FUTURE (2022+) CREATE NEW VALUE THROUGH NOVEL PRODUCTS AND SERVICES RECENT 2018 2019-2021 BEYOND LAUNCHES Build Momentum Accelerate Growth Shape the Future › WideStrike® 3 insect › UnifiedTM corn silage › Conkesta E3™ soybean › Corn & soybean insect protection x Enlist™ cotton › Intacta RR
Slide 12: Seed Platform by the Numbers
SEED PLATFORM BY THE NUMBERS LEADING SEED POSITION ACROSS LARGEST CROPS AND GEOGRAPHIES 2017 PRO FORMA 2017 PRO FORMA MARKET MARKET SHARE* SHARE BY REGION BY MAJOR PRODUCT GROUP NET SALES BY REGION1 NET SALES BY PRODUCT 1 Market Segment Rank N. AMERICA CORN #1 N. AMERICA SOY #1 BRAZIL CORN #1 EUR CO
Slide 13: Strongest and Most Diverse Advanced Breeding Engine
STRONGEST AND MOST DIVERSE ADVANCED BREEDING ENGINE GLOBAL SYSTEMS WITH LOCAL DELIVERY TO ENHANCE PRODUCT PERFORMANCE Digital Breeding Targeted Breeding › Enhanced breeding capabilities › Broadest CRISPR patent estate in including infrastructure, germplasm, industry and talent › Accelerated launch o
Slide 14: Maximizing Value of Trait Launches: Corn
MAXIMIZING VALUE OF TRAIT LAUNCHES: CORN1 BALANCING USE OF PROPRIETARY AND LICENSED TECHNOLOGY ABOVE-GROUND BELOW-GROUND Improved Improved Product Out license Improved Improved Product Out license TODAY 2030+ margin efficacy renewal opportunity TODAY 2030+ margin efficacy renewal opportunity Optimum
Slide 15: Maximizing Value of Trait Launches: Soybean
MAXIMIZING VALUE OF TRAIT LAUNCHES: SOYBEAN1 TRANSITIONING TO MORE PROPRIETARY TECHNOLOGY NORTH AMERICA LATIN AMERICA Improved Improved Product Out license Improved Improved Product Out license TODAY 2030+ margin efficacy renewal opportunity TODAY 2030+ margin efficacy renewal opportunity Roundup Re
Slide 16: Cross-Platform Opportunities
CROSS-PLATFORM OPPORTUNITES LEVERAGING POWER OF INTEGRATED SEED AND CROP PROTECTION PORTFOLIO Leading capability to deliver advanced Targeting ~$2B of Peak seed applied technologies to improve Sales From the Full System grower productivity Market-Driven Innovative Collaboration Science Assembly Robu
Slide 17: Crop Protection Platform by the Numbers
CROP PROTECTION PLATFORM BY THE NUMBERS BALANCED GEOGRAPHIC MIX; STRONG ALIGNMENT WITH SEED OFFERING 2017 PRO FORMA NET SALES 2017 PRO FORMA NET SALES MARKET MARKET SHARE* SHARE BY REGION REGION1 BY MAJOR PRODUCT GROUP 1 BY BY CROP SEGMENT Market Segment Rank GLOBAL #1 HERBICIDES NATURALLY DERIVED #
Slide 18: Crop Protection Pipeline Progress
CROP PROTECTION PIPELINE PROGRESS REQUIRED REGULATORY APPROVALS ON TRACK TO DELIVER 2018 GROWTH Pipeline Extend & Improve VessaryaTM › Targeting peak sales of ~$200 million Isoclast™ › Broadest solution set for Asian Soybean Rust Zorvec® Spinetoram › Targeting peak sales of >$200 million › Fungicide
Slide 19: Shaping the Crop Protection Platform Toward Differentiated & Cost Advantaged Offerings
SHAPING THE CROP PROTECTION PLATFORM TOWARD DIFFERENTIATED & COST ADVANTAGED OFFERINGS ENABLE COST ADVANTAGE DRIVE DISCIPLINE Build competitive cost advantages: Disciplined portfolio management: › Deliver cost synergies › Targeted acquisitions to enrich › Enable margin improvement of product offerin
Slide 20: Driving Customer Value Through Digitization
DRIVING CUSTOMER VALUE THROUGH DIGITIZATION Agriculture’s Digital Transformation Starts with the Digitize the farm Connect the farm Enable online Farm marketplaces Most Advanced Digital Solutions Offering Granular® Encirca® AcreValueTM • Silicon Valley-based • Advanced analytic- • Leading digital co
Slide 21: Corteva Agriscience: Robust Business Model for Consistent Growth
CORTEVA AGRISCIENCETM ROBUST BUSINESS MODEL FOR CONSISTENT GROWTH Global leader Award-winning Margin improvement Sustainable Expanding in $100B+ innovation enabled by pipeline competitive digital production Ag portfolio trait strategy, and advantage capabilities industry to drive synergy delivery to
Slide 22: Appendix
APPENDIX Agriculture Division of DowDuPont 22
Slide 23: Key Seed Platform Launches Through 2021
KEY SEED PLATFORM LAUNCHES THROUGH 2021 TRAIT CROPS GEOGRAPHIES TRAIT CROPS GEOGRAPHIES Corn North America Canola Canada Cotton, Corn, U.S., Latin America Corn North America Soy Soy Latin America Corn Latin America Canola Canada Next Gen Waxy Corn U.S. Canola Canada Sunflower Canada, Europe Launches
Slide 24: Key Crop Protection Platform Launches Through 2021
KEY CROP PROTECTION PLATFORM LAUNCHES THROUGH 2021 Product CROPS GEOGRAPHIES Product CROPS GEOGRAPHIES Cereal, Oilseed Rape, Sunflower All Regions VessaryaTM Soy Brazil Cotton, Corn, Soy USA Rice Asia Pacific Latin America Europe Soy, Fruit, Cereal, Banana Latin America VellozineTM Vegetables, All R
Slide 25: Agriculture Division of DowDuPont
DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO SOYBEANS WITH Roundup Ready 2 Xtend ® technology unless you use a dicamba herbicide product that is specifically labeled for that use in the location where you intend to make the application. IT IS A VIOLATION OF FEDERAL AND STATE LAW TO MAKE AN IN-CROP APPL
DowDuPont — BMO Capital Markets 13th Annual Farm to Market Conference 2018 on 6ix