Slide 1: 3Q 2024 Earnings Conference Call
3Q 2024 Earnings Conference Call November 7, 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 Margin Expansion on Higher Volume and Controllable Levers
CEO Messages 3Q 2024 3Q results largely as expected given Latin America dynamics Financial 3Q Operating EBITDA(1) gains in Crop Protection, including volume growth Performance Ongoing benefits from controllable levers support margin trajectory Current On-farm product demand remains steady an
Slide 5: Preliminary View of 2025
Preliminary View of 2025 Market Backdrop Corteva Expectations Strong demand for grains and oilseeds Seed gains driven by new hybrids and varieties On-farm product demand remains steady CP New Product / Biologicals volume gains Flat U.S. planted area, Brazil expected increase Increased pr
Slide 6: 2024 YTD Financial Performance
2024 YTD Financial Performance Metric 3Q 2024(1) 2024 YTD(1) YTD Highlights Seed pricing gains in most regions, reduced corn planted area Net Sales $2.3B $12.9B -10% -4% Crop Protection new products deliver MSD volume growth Seed price and mix gains partially offset by volume declines Organic Sales
Slide 7: 2024 YTD Operating EBITDA
2024 YTD Operating EBITDA(1) 2024 YTD Bridge Key Drivers ($ in millions) Seed pricing gains across the portfolio to capture value for technology, offset by Crop Protection competitive pressures $3 ($140) Volume impacted by lower corn planted area in Argentina and $2,995 $39 ($104) $58 $2,851 EME
Slide 8: Updated 2024 Guidance
Updated 2024 Guidance(1) Prior Guide Revised Guide Changes vs Prior Guide $17.2 - $17.5B $17.0 - $17.2B Revenue adjustment primarily reflects Net Sales +1% at mid-point (1%) at mid-point updated outlook for Latin America Operating $3.4 - $3.6B $3.35 - $3.45B Impact of lower revenue forecast with
Slide 9: Key Sensitivities – 2025 Preliminary Outlook
Key Sensitivities – 2025 Preliminary Outlook(2) Net Sales $17.3 - $17.7B Operating EBITDA(1) $3.6 – 4.0B Downside Case Upside Case Lower Brazil / Argentina corn planted area More North America / Latin America corn acres Lower Crop Protection market growth Stronger Crop Protection pricing env
Slide 10: FY 2025 Preliminary Operating EBITDA Outlook
FY 2025 Preliminary Operating EBITDA(1) Outlook FY 2025 Bridge Key Drivers LSD pricing gains in Seed to capture value for technology, driven by ($ in millions) new hybrids and varieties $3,600 - Crop Protection volume stabilizes, gains driven by new products $4,000 and Biologicals ~$3,400 ~$50
Slide 11: 2025 Preliminary Cost of Sale Improvement
2025 Preliminary Cost of Sale Improvement ~$550M ~$400M Seed and Crop Productivity Gross Cost Inflation / Net Cost Protection Improvement Other Costs Improvement input cost deflation Lower Seed Productivity includes Other Costs primarily commodity cost in LSD Crop Protection Crop Protection related
Slide 12: Key Takeaways
Key Takeaways FY 2024 Guidance Updated for Current Market Dynamics On track for $1.5 - $2.0B FCF for FY 2024 and $1B Share Repurchase FY 2025 Preliminary Outlook for Sales, Operating EBITDA, and Margin Growth Focus on Operational Execution and Continued Investment in Technology 12
Slide 13: Corteva 2024 Investor Day
Corteva 2024 Investor Day Tuesday, November 19, 2024 9:00 AM – 12:30 PM ET New York City and Virtual Key Themes: Corteva’s Position as an Ag Technology Company Spotlight on Growth Platforms Update on Business Operational Efficiency Innovation Highlights Financial Framework through 2027 13
Slide 14: Appendix
Appendix 14
Slide 15: 3Q 2024 Highlights
3Q 2024 Highlights ($ in millions, except EPS) 3Q 2023 3Q 2024 Change Net Sales $2,590 $2,326 (10)% GAAP Income (Loss) from Continuing Operations After Income Taxes $(315) $(519) (65)% Operating EBITDA(1) $18 $(100) (656)% Operating EBITDA Margin(1) 0.7% (4.3)% (499) bps GAAP EPS from Continuing Ope
Slide 16: 3Q 2024 Seed Performance Highlights
3Q 2024 Seed Performance Highlights ($ in millions) 3Q 2024 vPY 3Q 2024 Revenue by Product Line Net Sales $691 (21)% Organic(1) Sales Growth (17)% Other(4) Operating EBITDA $(320) (132)% Operating EBITDA Margin (46.3)% n/m Other oilseeds(3) Corn (5)% reported growth (35)% reported growth (4)% organi
Slide 17: 3Q 2024 Regional Net Sales Highlights – Seed
3Q 2024 Regional Net Sales Highlights – Seed North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 2% 2% America 43% 36% 3Q 2023 3Q 2024 3Q 2023 3Q 2024 Net Sales ($M) $173 $170 Net Sales ($M) $380 $218 $878M Volume Price Currency Portfolio Volume Price Currency Portfolio 2
Slide 18: 2024 YTD Seed Performance Highlights
2024 YTD Seed Performance Highlights ($ in millions) 2024 YTD vPY 2024 YTD Revenue by Product Line Net Sales $7,773 (1)% Organic(1) Sales Growth 1% Other oilseeds(3) Other(4) Operating EBITDA $2,126 8% (11)% reported growth Operating EBITDA Margin 27.4% 219 bps (2)% organic(1) growth Seed Operating
Slide 19: 2024 YTD Regional Net Sales Highlights – Seed
2024 YTD Regional Net Sales Highlights – Seed North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 4% 4% America 18% 17% 2023 YTD 2024 YTD 2023 YTD 2024 YTD Net Sales ($M) $5,192 $5,394 Net Sales ($M) $847 $696 $7.84B $7.77B Volume Price Currency Portfolio Volume Price Cur
Slide 20: 3Q 2024 Crop Protection Performance Highlights
3Q 2024 Crop Protection Performance Highlights ($ in millions) 3Q 2024 vPY 3Q 2024 Revenue by Product Line Net Sales $1,635 (4)% Organic(1) Sales Growth 1% Other(3) Operating EBITDA $246 34% Fungicides Operating EBITDA Margin 15.0% 430 bps (4)% reported growth 4% organic(1) growth Herbicides (10)% r
Slide 21: 3Q 2024 Regional Net Sales Highlights – Crop Protection
3Q 2024 Regional Net Sales Highlights – Crop Protection North Reported Organic(1) Latin Reported Organic(1) Global Net Sales 10% 10% 9% 2% America(2) America 3Q 2023 3Q 2024 3Q 2023 3Q 2024 Net Sales ($M) $399 $440 Net Sales ($M) $844 $771 Volume Price Currency Portfolio Volume Price Currency Portfo
Slide 22: 2024 YTD Crop Protection Performance Highlights
2024 YTD Crop Protection Performance Highlights ($ in millions) 2024 YTD vPY 2024 YTD Revenue by Product Line Net Sales $5,157 (9)% Organic(1) Sales Growth (7)% Other(3) Operating EBITDA $811 (27)% Fungicides Operating EBITDA Margin 15.7% (376) bps (9)% reported growth (5)% organic(1) growth Herbici
Slide 23: 2024 YTD Regional Net Sales Highlights – Crop Protection
2024 YTD Regional Net Sales Highlights – Crop Protection North Reported Organic(1) Latin Reported Organic(1) Global Net Sales 10% 10% 5% 1% America(2) America 2023 YTD 2024 YTD 2023 YTD 2024 YTD $5.7B Net Sales ($M) $1,901 $1,703 Net Sales ($M) $1,537 $1,458 $5.2B Volume Price Currency Portfolio Vol
Slide 24: 3Q 2024 Operating EPS Variance
3Q 2024 Operating EPS(1) Variance Operating EPS ($) $(0.23) $(0.49) $(0.13) $0.02 $(0.11) $0.01 $(0.02) $(0.03) 1 2 3 4 5 6 3Q 2023 Volume/ Costs Change in Base Currency Portfolio / 3Q 2024 EGL Price Tax Rate Other Volume/Price 1 Costs 2 Change in Base Tax Rate(1) 3 Crop Protection price pressure
Slide 25: FY 2024 Operating EBITDA
FY 2024 Operating EBITDA(1) FY 2024 Bridge Key Drivers ($ in millions) LSD pricing gains in Seed to capture value for technology, offset by elevated pricing pressure in Crop Protection Volume gains in both Seed and Crop Protection, led by Latin $3,350 - America, driven by increased 2024 / 2025 S
Slide 26: FY 2024 Modeling Guidance – Operating Earnings Per Share
FY 2024 Modeling Guidance – Operating Earnings Per Share(1) ($ in millions, except where noted) Guidance Depreciation and Post-Merge Amortization (620 - 630) Net Interest (Expense) Income (115 – 125) Base Income Tax Rate(1) 21% - 23% Exchange Losses – net, after tax (250 – 270) Net Income – Non-cont
Slide 27: 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
Slide 28: Non-GAAP Calculation of Corteva Operating EBITDA
Corteva, Inc. Non-GAAP Calculation of Corteva Operating EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 As As As As In millions Reported Margin % Reported Margin % Reported Margin % Reported Margin % Income (loss) from continuing operations after income ta
Slide 29: Segment Information: Net sales by segment
Corteva, Inc. Segment Information Net sales by segment Three Months Ended Nine Months Ended September 30, September 30, In millions 2024 2023 2024 2023 Seed $ 691 $ 878 $ 7,773 $ 7,837 Crop Protection 1,635 1,712 5,157 5,682 Total net sales $ 2,326 $ 2,590 $ 12,930 $ 13,519 Net Margin (GAAP) Three M
Slide 30: Segment Information: Corteva significant items (Pre-tax)
Corteva, Inc. Segment Information Corteva significant items (Pre-tax) Three Months Ended Nine Months Ended September 30, September 30, In millions 2024 2023 2024 2023 Seed Restructuring and asset related charges - net $ (3) $ 1 $ (56) $ (74) Inventory write-offs — — 2 (7) Gain (loss) on sale of busi
Slide 31: Price, Volume, Currency Analysis – Region
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Region Q3 2024 vs. Q3 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 2 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other North America 1 $ 38 7%$ 38 7% (9)% 16 % —% —
Slide 32: Price, Volume, Currency Analysis – Product Line
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Seed Product Line Q3 2024 vs. Q3 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 1 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other Corn $ (172) (35)% $ (152) (31)% (
Slide 33: Price, Volume, Currency Analysis – Region (Nine Months)
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Region Nine Months 2024 vs. Nine Months 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 2 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other North America 1 $ 4 —%$ 2 —
Slide 34: Price, Volume, Currency Analysis – Product Line (Nine Months)
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Seed Product Line Nine Months 2024 vs. Nine Months 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 1 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other Corn 2 $ (54) (1
Slide 35: Non-GAAP Calculation of Corteva Operating EPS
Corteva, Inc. Non-GAAP Calculation of Corteva Operating EPS Three Months Ended September 30, 2024 2023 2024 2023 $ (millions) $ (millions) EPS (diluted) EPS (diluted) Income (loss) from continuing operations attributable to Corteva common stockholders (GAAP) $ (522) $ (318) $ (0.76) $ (0.45) 1 Less:
Slide 36: Non-GAAP Calculation of Corteva Base Tax Rate
Corteva, Inc. Non-GAAP Calculation of Corteva Base Tax Rate Three Months Ended Nine Months Ended September 30, September 30, $ in millions 2024 2023 2024 2023 Income (loss) from continuing operations before income taxes (GAAP) $ (633) $ (444) $ 1,187 $ 1,416 Add: Significant items (benefit) charge 3
Slide 37: Non-GAAP Calculation of Free Cash Flow
Corteva, Inc. Non-GAAP Calculation of Free Cash Flow Twelve Months Ended In millions December 31, 2023 Cash provided by (used for) operating activities - continuing operations (GAAP) $ 1,809 Less: Capital expenditures (595) Free Cash Flow (Non-GAAP) 1 $ 1,214 Twelve Months Ended December 31, 20242 I