Corteva, Inc. · NYSE:CTVA
Corteva — Corteva Agriscience — Investor Day (November 2018)
39 slides from Corteva's investor day presentation, Nov 8, 2018
Slide 1: The Innovation Engine Fueling Growth
The Innovation Engine Fueling Growth Neal Gutterson Senior Vice President, Chief Technology Officer November 8, 2018 Agriculture Division of DowDuPont 1
Slide 2: R&D Innovation Principles
R&D Innovation Principles Market driven Disciplined & accountable Global yet local Built to differentiate Focused on productivity Agriculture Division of DowDuPont 2
Slide 3: Farmers Face a Changing Marketplace of Consumer Demand
Farmers Face a Changing Marketplace of Consumer Demand Healthy food supply Cleaner labels Knowing the Environmental food’s “story” sustainability Less food waste Agriculture Division of DowDuPont 3
Slide 4: We're Innovating for Farmers by Keeping Consumers Top of Mind
We’re Innovating for Farmers by Keeping Consumers Top of Mind Healthy Food Supply Environmental Sustainability ▪ Healthier oil composition of crops ▪ Precision ag and digital technology ▪ Natural crop protection for fruits ▪ Addressing crop health challenges and vegetables ▪ Maximizing yield per acr
Slide 5: Using a Rigorous, Disciplined Approach
Using a Rigorous, Disciplined Approach Global Innovation Product Program Investment Development Management Forum Discipline Seed & Traits Advance Stages and Gates Crop Protection Delay Transformational Terminate & Innovation Learning Model Reallocate Agriculture Division of DowDuPont 5
Slide 6: Relentless About Terminating Underperforming Projects
Relentless About Terminating Underperforming Projects Best use of capital mindset Reallocation From Graduation Rate Resource Reallocation Stopped Projects # of projects graduated # of projects stopped $MM 41 to business platform 10 18 31 13 6 22 6 2 Last 12 Months Last 24 Months Last 36 Months Last
Slide 7: Combining Global Reach with Local Application
Combining Global Reach with Local Application Talent Global Scale and Expertise Technology ▪ ~5,000 scientists ▪ State-of-the art labs, focused on value controlled environments creation and automated ▪ Industry-leading greenhouses synthetic and ▪ World-class genomics & formulation chemistry sequenci
Slide 8: Powered by Industry-Leading R&D Capabilities
Powered by Industry-Leading R&D Capabilities Seed Focus Crop Protection Focus Genomics Biotech Advanced Data Chemistry Formulation Natural & Phenotypin Science Discovery & Process Products Breeding g Chemistry Systems Digital Agriculture Division of DowDuPont 8
Slide 9: Fueled by Diverse Third-Party Engagements
Fueled by Diverse Third-Party Engagements Agriculture Division of DowDuPont 9
Slide 10: Enabling Us to Provide Farmers with Complete Solutions
Enabling Us to Provide Farmers with Complete Solutions ON THE FARM Crop Digital / ON THE SEED Protection Agronomy Seed Applied Technology IN THE SEED Breeding Biotech Agriculture Division of DowDuPont 10
Slide 11: Source of Differentiation: Our Germplasm Advantage
Source of Differentiation: Our Germplasm Advantage Digital Breeding Systems Cutting-edge Assessment Tools Greenhouse and field automation Population genomics Advanced phenotyping & analytics Agriculture Division of DowDuPont 11
Slide 12: Advancing Trait Launches
Advancing Trait Launches 2018 2019-2022 Note: Pending applicable regulatory reviews. Agriculture Division of DowDuPont 12
Slide 13: Commercializing Proprietary Traits
Commercializing Proprietary Traits Discovery, Capabilities: Development - Pre-Launch Launch Proof of Concept • Insect traits, Coleopteran • Yield & yield stability corn Traits: Protection 4 corn • Lepidopteran protection 3 & 4 Limited Launch • Coleopteran Protection 3 corn • Disease traits, Asian We
Slide 14: Source of Differentiation: Genome Editing
Source of Differentiation: Genome Editing Broadest CRISPR patent estate in the agriculture industry Broad agricultural applications of CRISPR Near-term product to market Yield & Waxy corn hybrids Disease Drought Output Yield Maturity Resistance Stability Tolerance Traits ▪ First planned commercial a
Slide 15: Source of Differentiation: Natural Products
Source of Differentiation: Natural Products Already leading developer of natural product and natural-derived solutions Innovating three generations of actives from a natural product Inatreq™ active Next-generation 3rd-generation solution solution 2019-2020 For use in New mode of Expected variety of
Slide 16: Source of Differentiation: Solutions Using Multiple Platforms
Source of Differentiation: Solutions Using Multiple Platforms Paving way for extended value capture Integrated solutions for Asian Soybean Rust (ASR) Chemistry Native Transgenic ~ Estimated trait trait $2B / year opportunity in Brazil alone Agriculture Division of DowDuPont 16
Slide 17: Source of Differentiation: Digital Tools
Source of Differentiation: Digital Tools Combining farm management with agronomic insights for best-in-class value proposition Real-time crop health monitoring ▪ Comparison of plots with and without Instinct HLTM on same day ▪ Differences in plant health clearly evident ▪ Farmer benefits: - Improved
Slide 18: Intense Focus on Productivity
Intense Focus on Productivity Driving internal financial efficiencies and quality improvements High throughput sequencing Genomics data analysis Year No of days Cost Year Data points Per unit cost 2016 180 $142K 2007 28.8MM $ .35 2017 21 $ 55K 2017 700MM $ .05 2018 9 $ 35K High throughput screening
Slide 19: R&D Innovation Principles
R&D Innovation Principles Market driven Disciplined & accountable Global yet local Built to differentiate Focused on productivity Agriculture Division of DowDuPont 19
Slide 20: Neal Gutterson, Ph.D., Senior Vice President, Chief Technology Officer
› Neal joined DuPont Pioneer in 2014 as the Vice President, Ag Biotech R&D; assumed current global role in 2016. › He is responsible for leading all of R&D to create innovative agricultural products, services and integrated solutions for farmers and consumers. › Previously president, CEO and board m
Slide 21: Glossary
Glossary Active ingredient (chemistry) The chemical substance that produces the biological effect of a formulate product. For example, Ibuprofen is the active ingredient in some pain relievers. Advanced phenotyping Advanced phenotyping uses robotics and data analytics to rapidly conduct tests that c
Slide 22: Glossary
Glossary Asian Soybean Rust Soybean rust, also referred to as Asian soybean rust, is an aggressive disease that attacks leaves and that, in the past ten to fifteen years, has spread from Asia to Africa, South America, and the United States. Yield losses can be severe with this disease and losses of
Slide 23: Glossary
Glossary • Marker-assisted breeding (sometimes called “marker assisted breeding” or “molecular breeding”) is a process that enables breeders to profile plants by extracting and analyzing DNA. DNA markers are used to select individual plants that carry regions of the genome that positively influence
Slide 24: Glossary
Glossary CIMMYT CIMMYT, the International Maize and Wheat Improvement Center, is the global leader in publicly funded maize and wheat research and related farming systems. CIMMYT works with hundreds of partners throughout the developing world to sustainably increase the productivity of maize and whe
Slide 25: Glossary
Glossary CRISPR CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) is a technology used to edit genomes, enabling researchers to more precisely improve a plant without introducing foreign DNA from another species. The edits produced in plants using CRISPR could occur in nature, but C
Slide 26: Glossary
Glossary Germplasm Plants, parts of plants and seeds that contain the genetics of the plant and that can be used to generate more plants and seeds. Germplasm is often used as a resource for breeding, research and preservation. Genomics The mapping and sequencing of genetic material in the DNA of an
Slide 27: Glossary
Glossary Germplasm library A collection of varieties of a crop with different genetic composition and performance, the use of which allows researchers to breed improved seed products with desired traits. Global Innovation Investment Forum (GIIF) The Global Innovation Investment Forum is an internal
Slide 28: Glossary
Glossary High-throughput sequencing High-throughput sequencing is a method that allows researchers to use robotics to determine the sequence of thousands or millions of DNA segments from one or more organisms in a single day. Horizons: One, Two and Three At Corteva Agriscience™, we define horizons a
Slide 29: Glossary
Glossary Inatreq™ Inatreq™ active is an innovative fungicide for controlling key diseases such as Septoria tritici, rust and other disease of cereals. Inatreq™ shows no cross-resistance to existing cereal fungicide chemistries. Instinct HL™ Instinct HL™ is a nitrogen stabilizer that helps corn reach
Slide 30: Glossary
Glossary Lepidoptera (Lep) Lepidoptera is an order of insects that includes around 180,000 species of butterflies and moths. Several Lepidoptera species attack crops in the field and in storage. Mode of action A mode of action (MoA) describes a functional or anatomical change, at the cellular level,
Slide 31: Glossary
Glossary Linoleic acid Linoleic acid is a polyunsaturated essential fatty acid, also known as an omega-6 fatty acid, found mostly in plant oils. Phenotype An observable characteristic of an individual resulting from the interaction of its genotype with the environment. Phenotyping Phenotyping is the
Slide 32: Glossary
Glossary Population genomics Population genomics is the application of genomic technologies to understand populations of organisms. Precision agriculture An integrated information and production-based farming system designed to increase long-term, site-specific, and whole- farm production efficienci
Slide 33: Glossary
Glossary Sequencing (genetics) This is the process by which the order of bases in DNA or RNA is determined. Information obtained using sequencing allows researchers to identify changes in genes, associations with diseases and phenotypes, and potential drug targets. Stages and Gates (delivery-based g
Slide 34: Glossary
Glossary • Input traits are those that potentially reduce inputs needed in production. An example would be Bt corn where the need to apply a pesticide to control European corn borer is reduced. Another example would be herbicide tolerant crops that allow producers to spray herbicides for weed contro
Slide 35: Glossary
Glossary Yield In agriculture, crop yield (also known as "agricultural output") is the measure of crop produced per area of land. • Yield stability refers to how stable the yield of an agricultural system is over time from one year to another, or with varied environmental conditions. An agricultural
Slide 36: 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 37: 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 38: 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 39: 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