Financial Data and Key Metrics Changes - The company reported a year-to-date operating EBITDA of nearly $3 billion, reflecting a 5% increase over 2022 despite a 1% decline in sales compared to the prior year [67][68][69] - Global pricing increased by 9%, with a 14% rise in global seed prices year-to-date, while crop protection pricing was up 4% [68][70][71] - Operating EPS is now expected to be in the range of $2.50 to $2.70 per share, down 3% versus the prior year at the midpoint [77] Business Line Data and Key Metrics Changes - Seed net sales increased by 7% year-to-date to over $7.8 billion, with organic sales up 9% driven by strong price execution [70] - Crop protection volumes decreased by 16% year-to-date, impacted by channel destocking and a shift in timing of seasonal demand [71][89] - The company expects to record pretax restructuring and asset-related charges of $410 million to $460 million through the end of 2024 [95] Market Data and Key Metrics Changes - In Brazil, the company anticipates continued destocking into 2024, with a unique situation of elevated channel inventories and increased generic supply impacting overall product availability [19][21][82] - The company noted that corn production in Europe remains below pre-conflict levels, particularly in the Black Sea region, where production is down 30% [65] - The company expects a modest shift from corn to soybeans in the US in 2024 due to various market dynamics [86][98] Company Strategy and Development Direction - The company is focused on enhancing its competitive position through a strategic framework aimed at margin expansion and long-term value creation [59][60] - The company plans to optimize its global crop production network, including exiting production activities at certain sites to improve cost competitiveness [80][81] - The company expects to achieve annual run rate savings of approximately $100 million by 2025, enhancing competitiveness and customer service [62][96] Management's Comments on Operating Environment and Future Outlook - Management indicated that while the ag markets remain constructive, they are mixed, with destocking largely behind in North America but expected to continue in Latin America and Europe [82][84] - The company expects low single-digit pricing growth for 2024, driven primarily by the Seed business, while Crop Protection pricing may face pressures [105][106] - Management remains confident in achieving the 2025 EBITDA guidance despite current market challenges, including geopolitical and macroeconomic factors [148][149] Other Important Information - The company has committed to returning cash to shareholders, evidenced by $750 million in share repurchases this year [64][78] - The company expects free cash flow to be in the range of $600 million to $1 billion, reflecting lower earnings and higher inventory [117] Q&A Session Summary Question: Can you expand on the flow-through of Seed and Crop Chem costs next year? - Management acknowledged that there will be a lag in higher costs flowing through inventory and into the P&L, with a focus on managing working capital effectively [13][25] Question: What are the expectations for Brazil's destocking and Crop Protection volume outlook? - Management indicated that while there will be some growth in the fourth quarter in Brazil, overall volume expectations for 2024 remain muted due to high channel inventories and delayed farmer purchases [19][20] Question: How do recent changes in Crop Protection impact confidence in achieving 2025 EBITDA guidance? - Management expressed confidence in achieving the midpoint of the 2025 EBITDA guidance, despite current market dynamics and challenges [147]

Safe Harbor Regarding Forward-Looking Statements Additionally, there may be other risks and uncertainties that Corteva is unable to currently identify or that Corteva does not currently expect to have a material impact on its business. Where, in any forward-looking statement or other estimate, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of Corteva's management and expressed in good faith and believed to have ...

[Part I Financial Information](index=5&type=section&id=Part%20I%20Financial%20Information) This section provides the unaudited interim consolidated financial statements and management's discussion and analysis of the company's financial performance and condition [Item 1. Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents Corteva, Inc.'s unaudited interim consolidated financial statements for the periods ended September 30, 2023 and 2022 [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This statement provides a summary of the company's revenues, expenses, and net income or loss for the specified periods Consolidated Statements of Operations Highlights (Unaudited) | Indicator (In millions, except per share) | Three Months Ended Sep 30, 2023 (Millions USD) | Three Months Ended Sep 30, 2022 (Millions USD) | Nine Months Ended Sep 30, 2023 (Millions USD) | Nine Months Ended Sep 30, 2022 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $2,590 | $2,777 | $13,519 | $13,630 | | **Income (loss) from continuing operations** | $(315) | $(322) | $1,172 | $1,257 | | **Net income (loss) attributable to Corteva** | $(321) | $(331) | $988 | $1,202 | | **Diluted earnings (loss) per share** | $(0.45) | $(0.46) | $1.39 | $1.66 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) This statement presents the company's financial position, including assets, liabilities, and equity, at specific points in time Consolidated Balance Sheet Highlights (Unaudited) | Indicator (In millions) | Sep 30, 2023 (Millions USD) | Dec 31, 2022 (Millions USD) | | :--- | :--- | :--- | | **Total current assets** | $16,333 | $16,795 | | **Total Assets** | $43,110 | $42,618 | | **Total current liabilities** | $10,348 | $10,744 | | **Total Liabilities** | $17,643 | $17,077 | | **Total Corteva stockholders' equity** | $25,226 | $25,302 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement details the cash inflows and outflows from operating, investing, and financing activities for the specified periods Consolidated Statement of Cash Flows Highlights (Unaudited, Nine Months Ended) | Indicator (In millions) | Sep 30, 2023 (Millions USD) | Sep 30, 2022 (Millions USD) | | :--- | :--- | :--- | | **Cash used for operating activities** | $(2,604) | $(2,146) | | **Cash used for investing activities** | $(1,773) | $(439) | | **Cash provided by financing activities** | $3,603 | $663 | | **Decrease in cash, cash equivalents** | $(842) | $(2,217) | [Notes to the Interim Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section provides detailed explanations and disclosures supporting the interim consolidated financial statements [Note 3 - Business Combinations](index=12&type=section&id=Note%203%20-%20Business%20Combinations) This note details the acquisitions of Stoller Group and Symborg, completed in March 2023, aimed at expanding the company's Biologicals portfolio - Completed acquisitions of Stoller for **$1.22 billion** and Symborg for **$370 million** on March 1, 2023, to expand its Biologicals business[98](index=98&type=chunk) Preliminary Purchase Price Allocation (in millions) | Acquired Company | Goodwill (Millions USD) | Other Intangible Assets (Millions USD) | Net Assets Acquired (Millions USD) | | :--- | :--- | :--- | :--- | | Stoller | $374 | $645 | $1,220 | | Symborg | $122 | $311 | $370 | [Note 4 - Revenue](index=14&type=section&id=Note%204%20-%20Revenue) This note outlines revenue recognition policies and disaggregates net sales by major product line and geographic region Net Sales by Segment (Nine Months Ended Sep 30, in millions) | Segment | 2023 (Millions USD) | 2022 (Millions USD) | | :--- | :--- | :--- | | Seed | $7,837 | $7,333 | | Crop Protection | $5,682 | $6,297 | | **Total** | **$13,519** | **$13,630** | Contract Balances (in millions) | Balance Type | Sep 30, 2023 (Millions USD) | Dec 31, 2022 (Millions USD) | Sep 30, 2022 (Millions USD) | | :--- | :--- | :--- | :--- | | Accounts receivable - trade | $5,320 | $4,261 | $4,875 | | Deferred revenue - current | $552 | $3,388 | $860 | [Note 5 - Restructuring and Asset Related Charges - Net](index=17&type=section&id=Note%205%20-%20Restructuring%20and%20Asset%20Related%20Charges%20-%20Net) This note details restructuring actions initiated in 2022, including the withdrawal from Russia, and associated charges - The company has incurred **$350 million** in charges inception-to-date under the 2022 Restructuring Actions, which includes the exit from Russia[113](index=113&type=chunk) 2022 Restructuring Charges (in millions) | Period | Three Months Ended Sep 30 (Millions USD) | Nine Months Ended Sep 30 (Millions USD) | | :--- | :--- | :--- | | **2023** | $1 | $19 | | **2022** | $146 | $202 | - Cash payments related to the 2022 restructuring are anticipated to be **$180 million to $210 million**, with approximately **$140 million** paid through September 30, 2023[89](index=89&type=chunk) [Note 12 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities](index=23&type=section&id=Note%2012%20-%20Short-Term%20Borrowings%2C%20Long-Term%20Debt%20and%20Available%20Credit%20Facilities) This note provides details on the company's short-term borrowings, long-term debt, and available credit facilities, including recent debt issuances Debt Summary (in millions) | Debt Category | Sep 30, 2023 (Millions USD) | Dec 31, 2022 (Millions USD) | | :--- | :--- | :--- | | Short-term borrowings | $3,609 | $24 | | Long-term debt | $2,290 | $1,283 | - In May 2023, the company issued **$600 million** of 4.50% Senior Notes due 2026 and **$600 million** of 4.80% Senior Notes due 2033[191](index=191&type=chunk) - The company has **$5.5 billion** in total committed and available credit facilities as of September 30, 2023[147](index=147&type=chunk) [Note 13 - Commitments and Contingent Liabilities](index=25&type=section&id=Note%2013%20-%20Commitments%20and%20Contingent%20Liabilities) This note outlines significant legal and environmental liabilities, including PFAS-related agreements and ongoing litigation concerning former products - Corteva, DuPont, and Chemours entered a Memorandum of Understanding (MOU) for a 50-50 cost split of up to **$4 billion** in qualified future PFAS liabilities. Corteva's estimated aggregate share is approximately **$600 million**[4](index=4&type=chunk) - The company, along with DuPont and Chemours, entered a binding agreement to resolve all PFAS-related drinking water claims from a defined class of U.S. public water systems, contributing to a **$1.185 billion** settlement fund[180](index=180&type=chunk)[211](index=211&type=chunk) - The company faces personal injury lawsuits related to chlorpyrifos exposure, the active ingredient in its former product Lorsban®. An accrual has been established for the estimated resolution of certain claims[5](index=5&type=chunk) Supplier Finance Program Obligations (in millions) | Date | Outstanding Obligation (Millions USD) | | :--- | :--- | | Sep 30, 2023 | $115 | | Dec 31, 2022 | $220 | | Sep 30, 2022 | $192 | [Note 14 - Stockholders' Equity](index=36&type=section&id=Note%2014%20-%20Stockholders%27%20Equity) This note details changes in stockholders' equity, including the completion of a prior share buyback plan and ongoing repurchases under a new program - A **$2 billion** share repurchase program was authorized in September 2022. During the nine months ended September 30, 2023, the company repurchased **6,330,000 shares** for **$330 million** under this plan[250](index=250&type=chunk)[348](index=348&type=chunk) - The **$1.5 billion** 2021 Share Buyback Plan was completed in Q1 2023, with **4,098,000 shares** repurchased for **$250 million** during the nine months ended September 30, 2023[293](index=293&type=chunk)[329](index=329&type=chunk) [Note 18 - Segment Information](index=44&type=section&id=Note%2018%20-%20Segment%20Information) This note provides financial performance details for the company's two reportable segments: Seed and Crop Protection Segment Performance (Nine Months Ended Sep 30, in millions) | Segment | Net Sales 2023 (Millions USD) | Operating EBITDA 2023 (Millions USD) | Net Sales 2022 (Millions USD) | Operating EBITDA 2022 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | Seed | $7,837 | $1,972 | $7,333 | $1,585 | | Crop Protection | $5,682 | $1,107 | $6,297 | $1,352 | | **Total** | **$13,519** | **$3,079** | **$13,630** | **$2,937** | [Note 19 - Subsequent Events](index=47&type=section&id=Note%2019%20-%20Subsequent%20Events) This note discloses post-period events, including a plan to optimize the Crop Protection manufacturing network and anticipated restructuring charges - On November 5, 2023, the company approved a plan to optimize its Crop Protection manufacturing network, including exiting its Pittsburg, CA facility[341](index=341&type=chunk) - The company expects to record aggregate pre-tax restructuring charges of **$410 million to $460 million**, with future cash payments of **$90 million to $120 million**[322](index=322&type=chunk)[342](index=342&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operational results, highlighting key drivers of sales and profitability changes [Results of Operations](index=51&type=section&id=Results%20of%20Operations) This section analyzes the company's consolidated financial performance, including net sales, cost of goods sold, and restructuring charges Net Sales Change Analysis (Nine Months 2023 vs. 2022) | Region | Net Sales Change ($M) (Millions USD) | % Change | Price & Mix | Volume | Currency | Portfolio/Other | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North America | $271 | 4% | 7% | (3)% | 0% | 0% | | EMEA | $102 | 4% | 20% | (11)% | (8)% | 3% | | Latin America | $(380) | (14)% | 2% | (26)% | 2% | 8% | | Asia Pacific | $(104) | (9)% | 7% | (10)% | (6)% | 0% | | **Total** | **$(111)** | **(1)%** | **9%** | **(10)%** | **(2)%** | **2%** | - For the nine months ended Sep 30, 2023, COGS decreased to **$7.55 billion** from **$7.93 billion** YoY, driven by lower volumes and cost actions, partially offset by higher input costs[354](index=354&type=chunk) - Restructuring charges for the nine months ended Sep 30, 2023, were **$95 million**, a significant decrease from **$300 million** in the prior-year period, primarily related to the 2022 Restructuring Actions and royalty amortization[357](index=357&type=chunk) [Segment Reviews](index=55&type=section&id=Segment%20Reviews) This section provides a detailed review of the financial performance for the Seed and Crop Protection segments [Seed Segment](index=55&type=section&id=Seed%20Segment) This section details the Seed segment's performance, highlighting sales growth driven by price increases despite volume declines Seed Segment Performance (Nine Months Ended Sep 30) | Indicator (in millions) | 2023 (Millions USD) | 2022 (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $7,837 | $7,333 | +7% | | Segment Operating EBITDA | $1,972 | $1,585 | +24% | - Sales growth was driven by a **14% price increase**, partially offset by a **5% volume decline** and a **3% unfavorable currency impact**[395](index=395&type=chunk) [Crop Protection Segment](index=57&type=section&id=Crop%20Protection%20Segment) This section details the Crop Protection segment's performance, noting sales and EBITDA declines due to volume decreases and higher input costs Crop Protection Segment Performance (Nine Months Ended Sep 30) | Indicator (in millions) | 2023 (Millions USD) | 2022 (Millions USD) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,682 | $6,297 | -10% | | Segment Operating EBITDA | $1,107 | $1,352 | -18% | - The sales decrease was driven by a **16% volume decline**, partially offset by a **4% price increase** and a **4% favorable portfolio impact** from Biologicals acquisitions[399](index=399&type=chunk) [Liquidity & Capital Resources](index=60&type=section&id=Liquidity%20%26%20Capital%20Resources) This section discusses the company's cash flow activities, including operating, investing, and financing, and their impact on liquidity - Cash used for operating activities was **$(2.6) billion** for the nine months ended Sep 30, 2023, compared to **$(2.1) billion** in the prior year, driven by changes in working capital, particularly lower accounts payable and higher usage of deferred revenue[466](index=466&type=chunk) - Cash used for investing activities increased to **$(1.8) billion** from **$(0.4) billion** YoY, primarily due to the acquisitions of Stoller and Symborg[440](index=440&type=chunk) - Cash provided by financing activities was **$3.6 billion**, up from **$0.7 billion** YoY, due to higher short-term borrowings and the May 2023 debt offering to fund working capital, acquisitions, and shareholder returns[467](index=467&type=chunk) [Part II Other Information](index=66&type=section&id=Part%20II%20Other%20Information) This section details significant legal proceedings, equity security sales, and other relevant disclosures [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) This section details significant legal matters, including antitrust lawsuits, personal injury claims, and ongoing patent and contract disputes - The Federal Trade Commission (FTC) and several state attorneys general filed a lawsuit alleging unfair methods of competition related to Corteva's crop protection products[205](index=205&type=chunk)[506](index=506&type=chunk) - The company is defending against personal injury and remediation lawsuits related to chlorpyrifos, the active ingredient in its former product Lorsban®[454](index=454&type=chunk) - Corteva is involved in multiple legal disputes with Bayer, including a patent infringement lawsuit filed by Corteva regarding its Enlist® corn technology and breach of contract lawsuits filed by Bayer concerning royalties for E3® soybeans[482](index=482&type=chunk)[507](index=507&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities, including shares bought back and the remaining authorization under its program Issuer Purchases of Equity Securities (Q3 2023) | Month | Total Shares Purchased | Average Price Paid | Value Remaining Under Program ($M) (Millions USD) | | :--- | :--- | :--- | :--- | | July 2023 | 0 | N/A | $1,920 | | August 2023 | 2,880,522 | $50.51 | $1,774 | | September 2023 | 2,032,601 | $51.42 | $1,670 | | **Total** | **4,913,123** | **$50.88** | **$1,670** | [Consolidated Financial Statements of EIDP, Inc. (Unaudited)](index=71&type=section&id=Consolidated%20Financial%20Statements%20of%20EIDP%2C%20Inc.%20%28Unaudited%29) This section presents the separate unaudited interim consolidated financial statements for EIDP, Inc., a wholly-owned subsidiary of Corteva [EIDP, Inc. Financial Statements Overview](index=71&type=section&id=EIDP%2C%20Inc.%20Financial%20Statements%20Overview) This section presents the separate unaudited interim consolidated financial statements for EIDP, Inc., highlighting key differences from Corteva's consolidated results - EIDP, Inc. is a wholly-owned subsidiary of Corteva, Inc. and its financial statements are presented separately. Key differences from Corteva's consolidated statements include EIDP's outstanding preferred stock and a related-party loan from Corteva, Inc.[536](index=536&type=chunk)[557](index=557&type=chunk) EIDP, Inc. Statement of Operations Highlights (Unaudited, Nine Months Ended Sep 30) | Indicator (in millions) | 2023 (Millions USD) | 2022 (Millions USD) | | :--- | :--- | :--- | | Net sales | $13,519 | $13,630 | | Interest expense | $193 | $76 | | Income from continuing operations before taxes | $1,394 | $1,596 | | Net income attributable to EIDP, Inc. | $979 | $1,185 | - EIDP has a related-party loan from Corteva, Inc. with an outstanding balance of **$115 million** as of September 30, 2023, down from **$1.066 billion** a year prior. This loan generated **$22 million** in interest expense for EIDP in the first nine months of 2023[559](index=559&type=chunk)

Corteva, Inc. (NYSE:CTVA) Morgan Stanley's 11th Annual Laguna Conference Call September 12, 2023 2:40 PM ET Company Participants Chuck Magro - Chief Executive Officer Dave Anderson - EVP and Chief Financial Officer Conference Call Participants Vincent Andrews - Morgan Stanley Vincent Andrews Hi, it's Vincent Andrews, Morgan Stanley chemicals and agricultural analyst and welcome back. We're happy to have Corteva with us and we have CEO, Chuck Magro and CFO, Dave Anderson with us. Before we get started, I'm j ...

Corteva, Inc. (NYSE:CTVA) Q2 2023 Earnings Conference Call August 4, 2023 9:00 AM ET Company Participants Kim Booth - Vice President of Investor Relations Chuck Magro - Chief Executive Officer Dave Anderson - Executive Vice President & Chief Financial Officer Tim Glenn - Executive Vice President, Seed Business Unit Conference Call Participants Vincent Andrews - Morgan Stanley David Begleiter - Deutsche Bank Kevin McCarthy - Vertical Research Partners Christopher Parkinson - Mizuho Joel Jackson - BMO Capital ...

Part I Financial Information [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Corteva, Inc.'s unaudited interim consolidated financial statements for Q2 and H1 2023 show slight sales growth but a net income decline [Notes to the Interim Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Financial%20Statements) These notes detail accounting policies, acquisitions, and contingent liabilities, including significant PFAS settlement agreements - On March 1, 2023, Corteva completed the acquisitions of Stoller Group, Inc. for **$1.224 billion** and Symborg for **$370 million** to expand its Biologicals business[59](index=59&type=chunk) Preliminary Purchase Price Allocation for Stoller and Symborg (In millions) | | Stoller | Symborg | | :--- | :--- | :--- | | **Total assets acquired** | **$1,547** | **$471** | | Goodwill | $384 | $129 | | Other intangible assets | $656 | $311 | | **Total liabilities assumed** | **$323** | **$101** | | **Net assets acquired** | **$1,224** | **$370** | - On June 1, 2023, Corteva, along with DuPont and Chemours, entered into a binding agreement to resolve PFAS-related drinking water claims from U.S. public water systems by contributing a total of **$1.185 billion** to a settlement fund[68](index=68&type=chunk)[69](index=69&type=chunk) - The company repurchased and retired shares totaling **$80 million** under its 2022 Share Buyback Plan and completed its 2021 plan by repurchasing **$250 million** in shares during the first six months of 2023[98](index=98&type=chunk)[99](index=99&type=chunk) Consolidated Statements of Operations (Unaudited) | (In millions, except per share amounts) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$6,045** | **$6,252** | **$10,929** | **$10,853** | | Cost of goods sold | $3,137 | $3,323 | $5,908 | $6,047 | | Income from continuing operations after income taxes | $880 | $1,002 | $1,487 | $1,579 | | **Net income attributable to Corteva** | **$714** | **$969** | **$1,309** | **$1,533** | | **Diluted earnings per share of common stock** | **$1.00** | **$1.33** | **$1.83** | **$2.11** | Consolidated Balance Sheets (Unaudited) | (In millions) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | **$17,207** | **$16,795** | | Goodwill | $10,539 | $9,962 | | **Total Assets** | **$44,189** | **$42,618** | | **Total current liabilities** | **$10,346** | **$10,744** | | Long-term debt | $2,290 | $1,283 | | **Total Liabilities** | **$17,728** | **$17,077** | | **Total Equity** | **$26,461** | **$25,541** | Consolidated Statements of Cash Flows (Unaudited) | (In millions) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net income (loss) | $1,316 | $1,539 | | **Cash provided by (used for) operating activities** | **($2,499)** | **($1,621)** | | **Cash provided by (used for) investing activities** | **($1,544)** | **($435)** | | **Cash provided by (used for) financing activities** | **$3,379** | **$106** | | Increase (decrease) in cash, cash equivalents and restricted cash equivalents | ($655) | ($2,066) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2023 financial results, highlighting sales changes driven by price and volume, and updated full-year guidance [Recent Developments](index=49&type=section&id=Recent%20Developments) Key recent developments include Stoller and Symborg acquisitions, 2022 Restructuring Actions, and ongoing share repurchase activities - Completed acquisitions of Stoller (**$1.224 billion**) and Symborg (**$370 million**) on March 1, 2023, to enhance the crop protection business with biological tools[157](index=157&type=chunk) - The 2022 Restructuring Actions, including the Russia exit, have incurred **$349 million** in charges to date and are expected to generate **$210-$220 million** in run-rate savings by 2025[158](index=158&type=chunk)[161](index=161&type=chunk) - The company repurchased **$80 million** of shares under the 2022 Share Buyback Plan and completed the 2021 plan with a final **$250 million** repurchase in H1 2023[162](index=162&type=chunk)[163](index=163&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) This section details Q2 and H1 2023 net sales changes, driven by price and volume, and changes in operating expenses Net Sales Change Analysis (Q2 2023 vs. Q2 2022) | Region | Net Sales Change ($M) | % Change | Price & Mix % | Volume % | Currency % | Portfolio/Other % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North America | $241 | 6% | 9% | (3)% | (1)% | 1% | | EMEA | ($144) | (17)% | 15% | (33)% | (4)% | 5% | | Latin America | ($225) | (27)% | 3% | (39)% | (1)% | 10% | | Asia Pacific | ($79) | (16)% | 6% | (17)% | (5)% | —% | | **Total** | **($207)** | **(3)%** | **9%** | **(13)%** | **(1)%** | **2%** | Net Sales Change Analysis (H1 2023 vs. H1 2022) | Region | Net Sales Change ($M) | % Change | Price & Mix % | Volume % | Currency % | Portfolio/Other % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North America | $438 | 7% | 9% | (1)% | (1)% | —% | | EMEA | $87 | 4% | 22% | (12)% | (10)% | 4% | | Latin America | ($323) | (22)% | 5% | (34)% | —% | 7% | | Asia Pacific | ($126) | (15)% | 7% | (15)% | (7)% | —% | | **Total** | **$76** | **1%** | **11%** | **(9)%** | **(3)%** | **2%** | - Interest expense increased significantly to **$82 million** in Q2 2023 from **$16 million** in Q2 2022, driven by higher interest rates, new senior notes, and increased short-term borrowings[196](index=196&type=chunk) - Loss from discontinued operations grew to **$163 million** in Q2 2023 from **$30 million** in Q2 2022, primarily due to charges associated with the settlement of PFAS-related legal matters[203](index=203&type=chunk) [Segment Reviews](index=55&type=section&id=Segment%20Reviews) This section reviews Seed and Crop Protection segments, highlighting Seed sales growth and Crop Protection sales decline [Seed Segment](index=56&type=section&id=Seed%20Segment) Seed net sales grew **8%** in Q2 and H1 2023 due to price increases, boosting operating EBITDA and margin Seed Segment Performance (In millions) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$4,264** | **$3,947** | **$6,959** | **$6,471** | | **Segment operating EBITDA** | **$1,458** | **$1,240** | **$2,110** | **$1,809** | - Q2 sales increase was driven by a **12%** price increase, partially offset by a **3%** volume decline. The volume drop was due to reduced corn area in EMEA and fewer soybean acres in North America[222](index=222&type=chunk)[223](index=223&type=chunk) - Segment operating EBITDA margin improved by approximately **280 basis points** in Q2 and **240 basis points** in H1 versus the prior-year periods[224](index=224&type=chunk)[227](index=227&type=chunk) [Crop Protection Segment](index=57&type=section&id=Crop%20Protection%20Segment) Crop Protection net sales fell significantly in Q2 and H1 2023 due to volume declines, impacting segment operating EBITDA Crop Protection Segment Performance (In millions) | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$1,781** | **$2,305** | **$3,970** | **$4,382** | | **Segment operating EBITDA** | **$320** | **$509** | **$923** | **$1,000** | - Q2 sales were down **23%**, driven by a **29%** volume decline from strategic product exits and inventory destocking across all regions[231](index=231&type=chunk)[232](index=232&type=chunk) - Segment operating EBITDA margin declined by approximately **410 basis points** in Q2 but increased by over **40 basis points** in H1 versus the prior-year periods[233](index=233&type=chunk)[236](index=236&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) Total debt increased significantly due to new debt, cash used in operating activities rose, and substantial credit lines are maintained - Total debt increased from **$1.3 billion** at Dec 31, 2022 to **$5.3 billion** at June 30, 2023, partly due to a **$1.2 billion** debt offering in May 2023[245](index=245&type=chunk)[247](index=247&type=chunk) - Cash used for operating activities was **$2.5 billion** in H1 2023, an increase from **$1.6 billion** in H1 2022, driven by changes in working capital, particularly lower accounts payable and higher usage of deferred revenue[259](index=259&type=chunk) - Cash used for investing activities increased to **$1.5 billion** in H1 2023 from **$435 million** in H1 2022, mainly due to the acquisitions of Stoller and Symborg[260](index=260&type=chunk) - The Board of Directors approved a **6.7%** increase in the quarterly dividend to **$0.16** per share in July 2023[179](index=179&type=chunk)[261](index=261&type=chunk) Part II Other Information [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) This section details significant legal matters, including an FTC lawsuit, product liability claims, patent disputes, and legacy PFAS liabilities - The Federal Trade Commission (FTC) and multiple state attorneys general filed a lawsuit against Corteva alleging unfair methods of competition and anticompetitive conduct[285](index=285&type=chunk) - The company faces personal injury and remediation lawsuits related to chlorpyrifos, the active ingredient in its discontinued insecticide, Lorsban®[286](index=286&type=chunk) - Corteva is engaged in multiple legal disputes with Bayer concerning patent infringement (Enlist® corn) and royalty payments (Roundup Ready® Corn 2)[287](index=287&type=chunk)[292](index=292&type=chunk)[293](index=293&type=chunk) - Legacy EIDP liabilities, particularly related to PFOA and PFAS, are managed through a cost-sharing Memorandum of Understanding (MOU) with Chemours and DuPont[296](index=296&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported from the most recent Annual Report on Form 10-K - There have been no material changes in the company's risk factors from those discussed in the most recently filed annual report on Form 10-K[300](index=300&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities during Q2 2023, totaling approximately 1.42 million shares for $80 million Issuer Purchases of Equity Securities (Q2 2023) | Month | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Value of Shares Remaining for Purchase ($M) | | :--- | :--- | :--- | :--- | | April 2023 | — | $— | $2,000 | | May 2023 | 561,720 | $55.91 | $1,969 | | June 2023 | 854,922 | $57.17 | $1,920 | | **Total** | **1,416,642** | **$56.67** | **$1,920** | [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls - The CEO and CFO of both Corteva, Inc. and EIDP, Inc. concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[277](index=277&type=chunk)[280](index=280&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[278](index=278&type=chunk)[281](index=281&type=chunk) Consolidated Financial Statements of EIDP, Inc. [EIDP, Inc. Financial Statements Overview](index=70&type=section&id=EIDP%20Inc.%20Financial%20Statements%20Overview) This section presents EIDP, Inc.'s separate unaudited consolidated financial statements, noting differences from Corteva's due to its unique capital structure - EIDP, Inc. is a reporting subsidiary of Corteva, Inc. Its financial statements differ from Corteva's primarily due to EIDP's outstanding preferred stock, a related-party loan from Corteva, and a different capital structure[331](index=331&type=chunk) - EIDP has a related-party revolving loan from Corteva, Inc. with an outstanding balance of **$268 million** as of June 30, 2023. EIDP incurred **$20 million** in interest expense on this loan in the first six months of 2023[335](index=335&type=chunk) - EIDP's effective tax rate for H1 2023 was **20.0%**, slightly different from Corteva's **20.1%**, influenced by the tax benefits associated with the interest expense on its related-party loan[337](index=337&type=chunk)[338](index=338&type=chunk)

Corteva, Inc. (NYSE:CTVA) Q1 2023 Earnings Conference Call May 4, 2023 9:00 AM ET Company Participants Kim Booth - Vice President, Investor Relations Chuck Magro - Chief Executive Officer Dave Anderson - Executive Vice President and Chief Financial Officer Tim Glenn - Executive Vice President, Seed Business Unit Robert King - Executive Vice President, Crop Protection Conference Call Participants Vincent Andrews - Morgan Stanley Kevin McCarthy - Vertical Research Partners David Begleiter - Deutsche Bank Chri ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38710 Corteva, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 82-4979096 (State or other Jurisdiction of Incorporation or Organizatio ...

Corteva, Inc. (NYSE:CTVA) Bank of America Securities 2023 Global Agriculture and Materials Conference March 1, 2023 8:50 AM ET Company Participants Chuck Magro - CEO Conference Call Participants Steve Byrne - Bank of America Steve Byrne It's a pleasure for me to have Chuck Magro up here from Corteva. I've known Chuck a long time, where his business card didn't say Corteva on it. But he's been in the ag industry for at least since 2009, I think it was, since you joined Nutrien, was that? Novo Chemicals befor ...

Approximately 1% of the workforce is unionized in the United States and another 11% participate in work councils and collective bargaining arrangements outside the United States. In 2022, the company did not experience any work stoppages due to strike or lockouts. Trade secrets are an important element of the company's intellectual property. Many of the processes used to make Corteva products are kept as trade secrets which, from time to time, may be licensed to third parties. Corteva vigilantly protects al ...