Corteva (CTVA) investor relations material

Strategic Vision and Business Model

• Transitioned to a pure-play crop protection company with a balanced, diversified portfolio and a proven track record, leveraging market-leading innovation platforms for sustainable growth and margin expansion.

• Innovation pipeline valued at ~$11B, targeting 12 new solutions over the next decade, including 7 new actives and 5 biologicals, aiming for $4B in peak revenue and higher margins.

• R&D efficiency is over 2x competitor average, supported by proprietary microbial discovery, AI-driven platforms, and a robust patent portfolio, with pipeline value per R&D dollar at 22.6x.

• External innovation is integrated through targeted acquisitions, partnerships, and in-licensing, with $93M invested in startups since 2023.

• Commercial model emphasizes differentiated technology, tailored go-to-market strategies, and on-farm demand generation to optimize grower ROI and drive repeat demand.

Financial Performance and Guidance

• Net sales projected to grow from $7.8B in 2026 to $8.4–$8.7B by 2029, a 3% CAGR; operating EBITDA to rise from $1.3B to $1.45–$1.65B, a 6% CAGR, with margins surpassing 18%.

• Operating EBITDA margin to improve by ~250 bps, reaching ~18% by 2026, with further gains to high-teens by 2029.

• Growth is driven by new products and biologicals, expected to deliver ~$800M in incremental sales and ~$450M in incremental EBITDA by 2029, offsetting a planned 1% annual price headwind.

• Cumulative cash flow from operations projected at $2.2–$2.6B by 2029, supporting dividends, share buybacks, and targeted M&A.

• Capital allocation prioritizes organic growth, innovation, shareholder returns, and maintaining an investment-grade balance sheet.

Innovation and Pipeline Development

• Differentiated R&D platforms, including AI-powered discovery and predictive safety, accelerate innovation and improve success rates.

• Pipeline includes next-generation fungicides, insecticides, herbicides, and plant performance products, with major launches such as Haviza, Varpelgo, and Utrisha N.

• Commercial and R&D teams are closely integrated, ensuring innovation aligns with market needs and rapid product commercialization.

• External innovation and partnerships expand the pipeline and maximize value creation.

• R&D efficiency is supported by proprietary microbial discovery, AI-driven platforms, and a robust patent portfolio.