Slide 1: 3Q 2023 Earnings Conference Call
3Q 2023 Earnings Conference Call November 9, 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: CTVA Continues to Deliver Earnings Growth in 2023
CEO Messages Progress on ▪ YTD Operating EBITDA(1) margin expansion, led by Seed performance Strategic ▪ Earnings growth reflects acceleration of royalty reduction and cost action benefits Initiatives ▪ Crop Protection operations strategy optimization to improve cost and agility Mixed ▪ Overall glob
Slide 5: Crop Sector Market Outlook
Crop Sector Market Outlook Global Corn Global Soybeans Strong Global Demand for Agricultural Commodities ▪ Record-setting demand for grain, oilseeds, and meat in 2023/24 ▪ 2023 demand for biofuels at record level, expected growth in 2024 U.S. Stocks-to-Use Ratios Signal More Soybean Acres ▪ Second h
Slide 6: 2023 YTD Financial Performance
2023 YTD Financial Performance Metric 3Q 2023 2023 YTD YTD Highlights $2.6B $13.5B Strong market demand in Seed offset by delayed Net Sales farmer purchases and CP channel destocking 7% 1% $2.4B $13.5B Organic growth in North America(2) and EMEA(2) Organic Sales(1) offset by 4% headwind from product
Slide 7: 2023 YTD Sales Highlights
2023 YTD Sales Highlights Global Net Sales 2023 YTD Sales by Segment Seed Crop Protection $13.6B $13.5B $7.8B $6.3B Reported ~$330M of $7.3B $5.7B CP exits 1% Organic(1) 1% 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD Reported 7% Reported 10% Organic(1) 9% Organic(1) 12% • Seed Performance
Slide 8: 2023 YTD Operating EBITDA Drivers
2023 YTD Operating EBITDA(1) Drivers 2023 YTD Bridge Key Drivers ▪ Broad-based pricing gains across the portfolio to capture value for ($ in millions) technology, more than offsetting cost and currency $1,239 ($470) ($463) ▪ Volume impacted by Crop Protection destocking / delayed order pattern coupl
Slide 9: Executing on Crop Protection Operations Strategy
Executing on Crop Protection Operations Strategy Comprehensive strategic review of global manufacturing network to deliver flexible, cost-competitive supply Execution Plan Key Strategy Elements ▪ Today announced targeted multi-year actions to 1 Partner with strategic external optimize global CP asse
Slide 10: Updated 2023 Guidance
Updated 2023 Guidance(1) Prior Guide Revised Guide Changes vs Prior Guide $17.9 - $18.2B $17.0 - $17.3B ▪ Revenue adjustment primarily reflects Net Sales +3% at mid-point -2% at mid-point updated 4Q outlook for Brazil $3.50 - $3.65B $3.25 - $3.45B ▪ Cost and productivity actions, partially Operating
Slide 11: Initial Views on 2024
Initial Views on 2024 Market Backdrop Organic Growth Cost and Productivity ▪ Modest shift in U.S. planted ▪ LSD pricing for CTVA on strong ▪ Cost forecast in Seed and CP area from corn to soy Seed line up and continued driven by inventory-to-COGS demand for top technology timing ▪ Lower expected pla
Slide 12: Key Takeaways
Key Takeaways 3Q YTD Performance in line with Expectations, EBITDA Margin + >120bps Cost, Productivity Actions and Improved Royalty Expense Making a Difference Updated 2023 Guidance Range Reflects Impact of Brazil 4Q Outlook Planning Framework for 2024 Supports Earning Growth Outlook Focus on Operat
Slide 13: Appendix
Appendix 13
Slide 14: 3Q 2023 Highlights
3Q 2023 Highlights ($ in millions, except EPS) 3Q 2022 3Q 2023 Change Net Sales $2,777 $2,590 (7)% GAAP Income (Loss) from Continuing Operations After Income Taxes $(322) $(315) +2% Operating EBITDA(1) $96 $18 (81)% Operating EBITDA Margin(1) 3.5% 0.7% (276) bps GAAP EPS from Continuing Operations $
Slide 15: 3Q 2023 Seed Performance Highlights
3Q 2023 Seed Performance Highlights ($ in millions) 3Q 2023 vPY 3Q 2023 Revenue by Product Line Net Sales $878 +2% Organic(1) Sales Growth 2% Other(4) Operating EBITDA $(138) +38% Operating EBITDA Margin (15.7)% +1,027 bps Other oilseeds(3) 15% reported growth 15% organic(1) growth Corn 4% reported
Slide 16: 3Q 2023 Regional Net Sales Highlights – Seed
3Q 2023 Regional Net Sales Highlights – Seed North Reported Organic(1) Latin Reported Organic(1) Global Net Sales America(2) 21% 20% America 1% 5% 3Q 2022 3Q 2023 3Q 2022 3Q 2023 Net Sales ($M) $218 $173 Net Sales ($M) $383 $380 $862M $878M Volume Price Currency Portfolio Volume Price Currency Portf
Slide 17: 2023 YTD Seed Performance Highlights
2023 YTD Seed Performance Highlights ($ in millions) 2023 YTD vPY 2023 YTD Revenue by Product Line Net Sales $7,837 +7% Organic(1) Sales Growth 9% Other(4) Operating EBITDA $1,972 +24% Other oilseeds(3) Operating EBITDA Margin 25.2% +355 bps (2)% reported growth 1% organic(1) growth Corn 11% reporte
Slide 18: 2023 YTD Regional Net Sales Highlights – Seed
2023 YTD Regional Net Sales Highlights – Seed North Reported Organic(1) Latin Reported Organic(1) Global Net Sales America(2) 12% 13% America 7% 11% $7.8B 2022 YTD 2023 YTD 2022 YTD 2023 YTD Net Sales ($M) $4,637 $5,192 Net Sales ($M) $912 $847 $7.3B Volume Price Currency Portfolio Volume Price Curr
Slide 19: 3Q 2023 Crop Protection Highlights
3Q 2023 Crop Protection Highlights ($ in millions) 3Q 2023 vPY 3Q 2023 Revenue by Product Line Net Sales $1,712 (11)% Organic(1) Sales Growth (20)% Other(3) Operating EBITDA $184 (48)% Operating EBITDA Margin 10.7% (763) bps Herbicides Fungicides (22)% reported growth (46)% reported growth (24)% org
Slide 20: 3Q 2023 Regional Net Sales Highlights – Crop Protection
3Q 2023 Regional Net Sales Highlights – Crop Protection North Reported Organic(1) Latin Reported Organic(1) Global Net Sales 23% 25% 6% 23% America(2) America 3Q 2022 3Q 2023 3Q 2022 3Q 2023 Net Sales ($M) $521 $399 Net Sales ($M) $898 $844 $1.9B Volume Price Currency Portfolio Volume Price Currency
Slide 21: 2023 YTD Crop Protection Highlights
2023 YTD Crop Protection Highlights ($ in millions) 2023 YTD vPY 2023 YTD Revenue by Product Line Net Sales $5,682 (10)% Organic(1) Sales Growth (12)% Other(3) Operating EBITDA $1,107 (18)% Operating EBITDA Margin 19.5% (199) bps Fungicides (29)% reported growth Crop Protection Operating EBITDA ($ i
Slide 22: 2023 YTD Regional Net Sales Highlights – Crop Protection
2023 YTD Regional Net Sales Highlights – Crop Protection North Reported Organic(1) Latin Reported Organic(1) Global Net Sales America(2) 13% 13% America 17% 31% 2022 YTD 2023 YTD 2022 YTD 2023 YTD Net Sales ($M) $2,185 $1,901 Net Sales ($M) $1,852 $1,537 $6.3B Volume Price Currency Portfolio Volume
Slide 23: 3Q 2023 Operating EPS Variance
3Q 2023 Operating EPS(1) Variance Operating EPS(1) ($) $(0.12) $(0.23) $(0.11) $(0.03) $0.05 $(0.03) $0.01 1 2 3 4 5 3Q 2022 Volume/ Costs Change in Base EGL Portfolio / 3Q 2023 Price Tax Rate(1) Other Volume/Price 1 Costs 2 Change in Base Income Tax Rate(1) 3 ▪ Strong price execution, more than off
Slide 24: 2023 Operating EBITDA Bridge
2023 Operating EBITDA(1) Bridge 2023 Bridge Key Drivers Organic(1) Growth ($ in millions) ▪ Mid-single digit pricing for total Company ▪ Favorable mix in U.S. Seed driven by increased corn acres and demand for top technology ▪ Russia exit(2) ~$200M headwind to Seed sales ▪ Crop Protection product ex
Slide 25: FY 2023 Modeling Guidance – Operating Earnings Per Share
FY 2023 Modeling Guidance – Operating Earnings Per Share(1) ($ in millions, except where noted) Guidance Depreciation and Post-Merge Amortization (580 - 590) Net Interest (Expense) Income (30 – 40) Base Income Tax Rate(1) 20% - 22% Exchange Losses – net, after tax (280 – 290) Net Income – Non-contro
Slide 26: Non-GAAP Calculation of Corteva Operating EBITDA
Corteva Non-GAAP Calculation of Corteva Operating EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 In millions As Reported Margin % As Reported Margin % As Reported Margin % As Reported Margin % Income (loss) from continuing operations, net of tax (GAAP) $
Slide 27: Corteva Segment Information: Net sales by segment
Corteva Segment Information Net sales by segment Thre e Months Ende d Se pte mbe r 30, Nine Months Ende d Se pte mbe r 30, In millions 2023 2022 2023 2022 Seed $ 878 $ 862 $ 7,837 $ 7,333 Crop Protection 1,712 1,915 5,682 6,297 Total ne t sale s $ 2,590 $ 2,777 $ 13,519 $ 13,630 Net Margin (GAAP) Th
Slide 28: Corteva Significant Items (Pretax)
Corteva significant items (Pretax) Three Months Ended September 30, Nine Months Ended September 30, In millions 2023 2022 2023 2022 Seed Restructuring and asset-related charges - net $ 1 $ (66) $ (74) $ (197) Inventory write-offs - (32) (7) (33) Loss on sale of equity investments - - - (5) Settlemen
Slide 29: Price, Volume Currency Analysis – Region
Corteva Segment Information - Price, Volume Currency Analysis Region Q3 2023 vs. Q3 2022 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP)2 $ (millions) % $ (millions) % Price & Product Mix Volume Currency Portfolio / Other North America1 $ (167) (23)% $ (172) (23)% (1)% (22)%
Slide 30: Price, Volume Currency Analysis – Seed Product Line
Corteva Segment Information - Price, Volume Currency Analysis Seed Product Line Q3 2023 vs. Q3 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 $ 18 4% $ 25 5% 16% (11)% (1)% -% S
Slide 31: Price, Volume Currency Analysis – Region (Nine Months)
Corteva Segment Information - Price, Volume Currency Analysis Region Nine Months Ended September 30, 2023 vs. Nine Months Ended September 30, 2022 Percent Change Due To: 2 Net Sales Change (GAAP) Organic Change (Non-GAAP) $ (millions) % $ (millions) % Price & Product Mix Volume Currency Portfolio /
Slide 32: Price, Volume Currency Analysis – Seed Product Line (Nine Months)
Corteva Segment Information - Price, Volume Currency Analysis Seed Product Line Nine Months Ended September 30, 2023 vs. Nine Months Ended September 30, 2022 Percent Change Due To: 2 Net Sales Change (GAAP) Organic Change (Non-GAAP) $ (millions) % $ (millions) % Price & Product Mix Volume Currency P
Slide 33: Non-GAAP Calculation of Corteva Operating EPS
Corteva Non-GAAP Calculation of Corteva Operating EPS Three Months Ended September 30, 2023 2022 2023 2022 $ (millions) $ (millions) EPS (diluted) EPS (diluted) Income (loss) from continuing operations attributable to Corteva (GAAP) $ (318) $ (325) $ (0.45) $ (0.45) 1 Less: Non-operating benefits (c
Slide 34: Non-GAAP Calculation of Corteva Base Tax Rate
Corteva Non-GAAP Calculation of Corteva Base Tax Rate Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Income (loss) from continuing operations before income taxes (GAAP) $ (444) $ (396) $ 1,416 $ 1,629 Add: Significant items (benefit) charge 71 202 271 379 Non-op
Slide 35: 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) $ 1,215 $ 1,615 Le
Slide 36: Product Disclosures
Product Disclosures TM ® SM Trademarks and service marks of Corteva Agriscience and its affiliated companies. © 2023 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