Slide 1: 4Q 2023 Earnings Conference Call
4Q 2023 Earnings Conference Call February 1, 2024
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: 2024 Guidance Reflects Continued Growth at Attractive Margin
CEO Messages Strong Record-setting demand for grain, oilseeds, meat, and biofuels in 2023 Global On-farm product demand remains steady and overall healthy Demand Global Crop Protection market remains imbalanced Solid Delivered 116 basis points of Operating EBITDA margin(1) expansion for FY 2
Slide 5: 2023 / 2024 Key Themes
2023 / 2024 Key Themes Value Creation Strategy: Technology, Differentiated Products, and Ongoing Productivity 2023 Performance 2024 Expectations Stand-out Seed performance Continued Seed growth CP destocking / industry imbalance CP volume growth partially offset by price Solid earnings gro
Slide 6: 2023 Financial Performance
2023 Financial Performance Metric 4Q 2023 FY 2023 2023 Highlights $3.7B $17.2B Strong market demand in Seed offset by CP channel Net Sales destocking and Brazil market dynamics 3% 1% $3.5B $17.0B Organic growth in North America(2) and EMEA(2) Organic Sales(1) offset by 4% headwind from product / Rus
Slide 7: 2023 Sales Highlights
2023 Sales Highlights Global Net Sales FY 2023 Sales by Segment Seed Crop Protection $17.46B $17.23B $9.47B $8.98B $8.48B Reported ~$400M of $7.75B 1% CP exits Organic(1) 3% FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 Reported 5% Reported 9% Organic(1) 7% Organic(1) 12% • Seed Performance Reflec
Slide 8: FY 2023 Operating EBITDA Margin Expansion
FY 2023 Operating EBITDA(1) FY 2023 Bridge Key Drivers Broad-based pricing gains across the portfolio to capture value for ($ in millions) technology, more than offsetting cost and currency $1,258 ($565) ($382) Volume impacted by Crop Protection destocking and Brazil market, coupled with product
Slide 9: 2024 Guidance
2024 Guidance(1) Operating Highlights Net Sales EBITDA(2) LSD Revenue growth driven by Seed $17.4 – 17.7B $3.5 – 3.7B pricing and demand for top technology +6% at mid-point Benefits from cost deflation, productivity +2% at mid-point Op. EBITDA Margin(2) and royalty reduction Improvement ~90 bps
Slide 10: FY 2024 Operating EBITDA Margin Expansion in Seed and Crop Protection
FY 2024 Operating EBITDA(1) FY 2024 Bridge Key Drivers LSD pricing gains in Seed to capture value for technology, offset by ($ in millions) elevated pricing pressure in Crop Protection Volume gains in both Seed and Crop Protection, offset by CP $3,500 - $3,700 destocking in Latin America and EME
Slide 11: Operating EBITDA 2021 – 2025
Operating EBITDA 2021 – 2025 Operating EBITDA($B)(1) 2024 / 2025 Key Drivers Seed growth driven by expected LSD pricing $3.9-$4.4 $3.5 - $3.7 Crop Protection industry expected to rebalance $3.2 $3.4 Continued growth in Biologicals business $2.6 $100M per year royalty improvement 2024 + 2025
Slide 12: Key Sensitivities – 2025 Base Case
Key Sensitivities – 2025 Base Case 2025 Operating EBITDA(1) Range Downside Case ~$4.2B(2) Upside Case Greater price pressures Seed growth with LSD pricing Increased price performance Lower Crop Protection growth Modest Crop Protection growth Stronger Crop Protection growth Softer deman
Slide 13: Key Takeaways
Key Takeaways FY2023 Performance in line with Expectations, EBITDA Margin(1) +116bps Cost, Productivity Actions, and Improved Royalty Expense Adding Value FY2024 / 2025 Outlook Reflects Incremental Earnings and Margin Significant Financial Strength and Confidence in Outlook Focus on Controllables Dr
Slide 14: Appendix
Appendix 14
Slide 15: 4Q 2023 Highlights
4Q 2023 Highlights ($ in millions, except EPS) 4Q 2022 4Q 2023 Change Net Sales $3,825 $3,707 (3)% GAAP Income (Loss) from Continuing Operations After Income Taxes $(41) $(231) (463)% Operating EBITDA(1) $370 $386 +4% Operating EBITDA Margin(1) 9.7% 10.4% +74 bps GAAP EPS from Continuing Operations
Slide 16: 4Q 2023 Seed Performance Highlights
4Q 2023 Seed Performance Highlights ($ in millions) 4Q 2023 vPY 4Q 2023 Revenue by Product Line Net Sales $1,635 (1)% Organic(1) Sales Growth (3)% Other oilseeds(3) Other(4) Operating EBITDA $145 +104% 6% reported growth Operating EBITDA Margin 8.9% +456 bps 10% organic(1) growth Seed Operating EBIT
Slide 17: 4Q 2023 Regional Net Sales Highlights – Seed
4Q 2023 Regional Net Sales Highlights – Seed North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 6% 6% America 7% 12% 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Net Sales ($M) $541 $576 Net Sales ($M) $846 $790 Volume Price Currency Portfolio Volume Price Currency Portfolio $1.65B $
Slide 18: 2023 Seed Performance Highlights
2023 Seed Performance Highlights ($ in millions) FY 2023 vPY FY 2023 Revenue by Product Line Net Sales $9,472 +5% Organic(1) Sales Growth +7% Other(4) Operating EBITDA $2,117 +28% Other oilseeds(3) Operating EBITDA Margin 22.4% +391 bps (1)% reported growth 2% organic(1) growth Corn 8% reported grow
Slide 19: 2023 Regional Net Sales Highlights – Seed
2023 Regional Net Sales Highlights – Seed North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 11% 12% America 7% 11% FY 2022 FY 2023 FY 2022 FY 2023 $9.47B Net Sales ($M) $5,178 $5,768 Net Sales ($M) $1,758 $1,637 $8.98B Volume Price Currency Portfolio Volume Price Curren
Slide 20: 4Q 2023 Crop Protection Highlights
4Q 2023 Crop Protection Highlights ($ in millions) 4Q 2023 vPY 4Q 2023 Revenue by Product Line Net Sales $2,072 (5)% Organic(1) Sales Growth (12)% Other(3) Operating EBITDA $267 (20)% Fungicides Operating EBITDA Margin 12.9% (235) bps (1)% reported growth (4)% organic(1) growth Herbicides (11)% repo
Slide 21: 4Q 2023 Regional Net Sales Highlights – Crop Protection
4Q 2023 Regional Net Sales Highlights – Crop Protection North Reported Organic(1) Latin Reported Organic(1) Global Net Sales 1% 2% 12% 30% America(2) America 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Net Sales ($M) $931 $921 Net Sales ($M) $835 $732 $2.18B Volume Price Currency Portfolio Volume Price Currency
Slide 22: 2023 Crop Protection Highlights
2023 Crop Protection Highlights ($ in millions) FY 2023 vPY 2023 Revenue by Product Line Net Sales $7,754 (9)% Organic(1) Sales Growth (12)% Other(3) Operating EBITDA $1,374 (18)% Operating EBITDA Margin 17.7% (215) bps Fungicides (23)% reported growth Crop Protection Operating EBITDA ($ in millions
Slide 23: 2023 Regional Net Sales Highlights – Crop Protection
2023 Regional Net Sales Highlights – Crop Protection North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 9% 10% America 16% 30% FY 2022 FY 2023 FY 2022 FY 2023 $8.48B Net Sales ($M) $3,116 $2,822 Net Sales ($M) $2,687 $2,269 Volume Price Currency Portfolio Volume Price Cu
Slide 24: FY 2023 Operating EPS Variance
FY 2023 Operating EPS(1) Variance Operating EPS(1) ($) $0.74 $(0.44) $2.67 $0.01 $(0.30) $2.69 $(0.14) $0.15 1 2 3 4 5 6 FY 2022 Volume/ Costs Change in Base Currency EGL Portfolio / FY 2023 Price Tax Rate(1) Other Volume/Price 1 Costs 2 Change in Base Income Tax Rate(1) 3 Strong price execution p
Slide 25: FY 2024 Modeling Guidance – Operating Earnings Per Share
FY 2024 Modeling Guidance – Operating Earnings Per Share(1) ($ in millions, except where noted) Guidance Depreciation and Post-Merge Amortization (625 - 635) Net Interest (Expense) Income (90 – 100) Base Income Tax Rate(1) 21% - 23% Exchange Losses – net, after tax (270 – 290) Net Income – Non-contr
Slide 26: Non-GAAP Calculation of Corteva Operating EBITDA
Corteva Non-GAAP Calculation of Corteva Operating EBITDA Three Months Ended December 31, Twelve Months Ended December 31, 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 De ce mbe r 31, Twe lve Months Ende d De ce mbe r 31, In millions 2023 2022 2023 2022 Seed $ 1,635 $ 1,646 $ 9,472 $ 8,979 Crop Protection 2,072 2,179 7,754 8,476 Total ne t s ale s $ 3,707 $ 3,825 $ 17,226 $ 17,455 Net Margin (GA
Slide 28: Corteva Significant Items (Pretax)
Corteva significant items (Pretax) Three Months Ended December 31, Twelve Months Ended December 31, In millions 2023 2022 2023 2022 Seed Restructuring and asset-related charges - net $ (12) $ (31) $ (86) $ (228) Inventory write-offs - - (7) (33) Loss on sale of equity investments - - - (5) Settlemen
Slide 29: Price, Volume Currency Analysis – Region (Q4)
Corteva Segment Information - Price, Volume Currency Analysis Region Q4 2023 vs. Q4 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 $ 25 2% $ 15 1% (3)% 4% -% 1% EMEA1,
Slide 30: Price, Volume Currency Analysis – Product Line (Q4)
Corteva Segment Information - Price, Volume Currency Analysis Seed Product Line Q4 2023 vs. Q4 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 $ (26) (2)% $ (56) (4)% 8% (12)% 3%
Slide 31: Price, Volume Currency Analysis – Region (FY)
Corteva Segment Information - Price, Volume Currency Analysis Region Twelves Months Ended December 31, 2023 vs. Twelve Months Ended December 31, 2022 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP)2 $ (millions) % $ (millions) % Price & Product Mix Volume Currency Portfolio
Slide 32: Price, Volume Currency Analysis – Product Line (FY)
Corteva Segment Information - Price, Volume Currency Analysis Seed Product Line Twelves Months Ended December 31, 2023 vs. Twelve Months Ended December 31, 2022 Percent Change Due To: 2 Net Sales Change (GAAP) Organic Change (Non-GAAP) $ (millions) % $ (millions) % Price & Product Mix Volume Currenc
Slide 33: 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 (diluted) EPS (diluted) Income (loss) from continuing operations attributable to Corteva (GAAP) $ (233) $ (43) (0.33) $ (0.06) 1 Less: Non-operating benefits (costs
Slide 34: Non-GAAP Calculation of Corteva Base Tax Rate
Corteva Non-GAAP Calculation of Corteva Base Tax Rate Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Income (loss) from continuing operations before income taxes (GAAP) $ (323) $ (203) $ 1,093 $ 1,426 Add: Significant items (benefit) charge 308 123 579 502 Non-o
Slide 35: Non-GAAP Calculation of Free Cash Flow
Corteva Non-GAAP Calculation of Free Cash Flow Twelve Months Ended December 31, In millions 2023 2022 Cash provided by (used for) operating activities - continuing operations (GAAP) $ 1,809 $ 912 Less: Capital expenditures (595) (605) Free Cash Flow (Non-GAAP) 1 $ 1,214 $ 307 Twelve Months Ended Dec
Slide 36: Product Disclosures
Product Disclosures TM ® SM Trademarks and service marks of Corteva Agriscience and its affiliated companies. © 2024 Corteva and its affiliated companies. The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Corteva Agriscience LLC and M.S. Technologies, L.L.C. Enlis