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, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "plans," "expects," "will," "anticipates," "believes," "intends," "projects," "estimates", "guidance", or other words of similar meaning. All statements that address expectations or projections about the future, including statements about Corteva's strategy for growth, product development, regulatory approval, market position, anticipated benefits of recent acquisitions, timing of anticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters, expenditures, and financial results, as well as expected benefits from, the separation of Corteva from DowDuPont, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events which may not be accurate or realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond Corteva's control. While the list of factors presented below is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Corteva's business, results of operations and financial condition. Some of the important factors that could cause Corteva's actual results to differ materially from those projected in any such forward-looking statements include: (i) failure to successfully develop and commercialize Corteva's pipeline; (ii) effect of competition and consolidation in Corteva's industry; (iii) failure to obtain or maintain the necessary regulatory approvals for some Corteva's products; (iv) failure to enforce Corteva's intellectual property rights or defend against intellectual property claims asserted by others; (v) effect of competition from manufacturers of generic products; (vi) impact of Corteva's dependence on third parties with respect to certain of its raw materials or licenses and commercialization; (vii) costs of complying with evolving regulatory requirements and the effect of actual or alleged violations of environmental laws or permit requirements; (viii) effect of the degree of public understanding and acceptance or perceived public acceptance of Corteva's biotechnology and other agricultural products; (ix) effect of changes in agricultural and related policies of governments and international organizations; (x) effect of industrial espionage and other disruptions to Corteva's supply chain, information technology or network systems; (xi) competitor's establishment of an intermediary platform for distribution of Corteva's products; (xii) effect of volatility in Corteva's input costs; (xiii) failure to raise capital through the capital markets or short-term borrowings on terms acceptable to Corteva; (xiv) failure of Corteva's customers to pay their debts to Corteva, including customer financing programs; (xv) failure to realize the anticipated benefits of the internal reorganizations taken by DowDuPont in connection with the spin-off of Corteva, including failure to benefit from significant cost synergies; (xvi) risks related to the indemnification obligations of legacy EID liabilities in connection with the separation of Corteva; (xvii) increases in pension and other post-employment benefit plan funding obligations; (xviii) effect of compliance with environmental laws and requirements and adverse judgments on litigation; (xix) risks related to Corteva's global operations; (xx) effect of climate change and unpredictable seasonal and weather factors; (xxi) effect of counterfeit products; (xxii) failure to effectively manage acquisitions, divestitures, alliances and other portfolio actions; (xxiii) risks related to non-cash charges from impairment of goodwill or intangibles assets; (xxiv) risks related to COVID-19; (xxv) risks related to oil and commodity markets, and (xxvi) other risks related to Corteva's Separation from DowDuPont.
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 a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. Corteva disclaims and does not undertake any obligation to update or revise any forward-looking statement or other estimate, except as required by applicable law. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements or other estimates is included in the "Risk Factors" section of Corteva's Annual Report on Form 10-K, as modified by subsequent Quarterly Reports on Forms 10-Q and Current Reports on Form 8-K.
2
A Reminder About Non-GAAP Financial Measures and Pro Forma Financial Information
Corteva Unaudited Pro Forma Financial Information
In order to provide the most meaningful comparison of results of operations, supplemental unaudited pro forma financial information for the first quarter of 2019 has been included in this presentation. This presentation presents the pro forma results of Corteva, after giving effect to events that are (1) directly attributable to the merger of DuPont and Dow, debt retirement transactions related to paying off or retiring portions of Historical DuPont's existing debt liabilities, and the separation and distribution to DowDuPont stockholders of all the outstanding shares of Corteva common stock; (2) factually supportable and (3) with respect to the pro forma statements of income, expected to have a continuing impact on the consolidated results. Refer to Corteva's Form 10 registration statement filed on May 6, 2019, which can be found on the investors section of the Corteva website, for further details on the above transactions. The pro forma financial statements were prepared in accordance with Article 11 of Regulation S-X, and are presented for informational purposes only, and do not purport to represent what the results of operations would have been had the above actually occurred on the dates indicated, nor do they purport to project the results of operations for any future period or as of any future date.
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), operating EBITDA, pro forma operating EBITDA, operating EBITDA margin, pro forma operating EBITDA margin, operating earnings per share, pro forma operating earnings per share, base tax rate and pro forma base tax rate. Management uses these measures internally for planning and forecasting, including allocating resources and evaluating incentive compensation. Management believes that these non-GAAP measures reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year over year results.
These non-GAAP measures supplement the Company's U.S. GAAP disclosures and should not be viewed as an alternative to U.S. GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. For first quarter 2019, these non-GAAP measures are being reconciled to a pro forma GAAP financial measure prepared and presented in accordance with Article 11 of Regulation S-X. Reconciliations for these non-GAAP measures to their most directly attributable U.S. GAAP measure are provided on slides 24 - 32 of this presentation.
Corteva is not able to reconcile its forward-lookingnon-GAAP financial measures to their most comparable U.S. GAAP financial measures, as it is unable to predict with reasonable certainty items outside of the company's control, such as Significant Items, without unreasonable effort. For Significant Items reported in the periods presented, refer to slide 26. Beginning January 1, 2020, the company presents accelerated prepaid royalty amortization expense as a significant item. Accelerated prepaid royalty amortization represents the noncash charge associated with the recognition of upfront payments made to Monsanto in connection with the Company's non-exclusive license in the United States and Canada for Monsanto's Genuity® Roundup Ready 2 Yield® Roundup Ready 2 Xtend® herbicide tolerance traits. During the five-yearramp-up period of Enlist E3TM, Corteva is expected to significantly reduce the volume of products with the Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits beginning in 2021, with expected minimal use of the trait platform after the completion of the ramp-up.
Organic sales is defined as price and volume and excludes currency and portfolio impacts. Operating EBITDA is defined as earnings (i.e., income from continuing operations before income taxes) before interest, depreciation, amortization, non-operating benefits, net and foreign exchange gains (losses), net, excluding the impact of significant items (including goodwill impairment charges). Non-operating benefits, net consists of non-operating pension and other post-employment benefit (OPEB) credits, tax indemnification adjustments, environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense. Operating EBITDA margin is defined as Operating EBITDA as a percentage of net sales. Operating earnings per share are defined as "Earnings per common share from continuing operations - diluted" excluding the after-tax impact of significant items (including goodwill impairment charges), the after-tax impact of non-operating benefits, net, and the after-tax impact of amortization expense associated with intangible assets existing as of the Separation from DowDuPont. Although amortization of the Company's intangible assets is excluded from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in amortization of additional intangible assets. Base tax rate is defined as the effective tax rate excluding the impacts of foreign exchange gains (losses), net, non-operating benefits, net, amortization of intangibles as of the Separation from DowDuPont, and significant items (including goodwill impairment charges). The first quarter of 2019 is on a pro forma basis as discussed above in the paragraph 'Corteva Unaudited Pro Forma Financial Information'.
3
Next Stage on Our Journey to Drive Growth
1
2
3
4
Delivering
Driving actions to
Fortifying currency
Accelerating return
organic(1)
expand margins in
risk management
of cash to
sales growth
both segments
practices
shareholders
Expect to deliver earnings growth aligned with mid-term targets
(1) Organic sales is a non-GAAP measures. See slide 3 for further discussion.
4
Focused Execution to Deliver Continued Growth
2020 Financial Results
Measure
Net Sales
Organic(1) Sales
Operating
EBITDA(1), (2)
Operating EBITDA
Margin(1)
Q3 2020
2020 YTD
(3)%1%
9%6%
14%5%
122 bps
58 bps
Highlights
Net sales decline in the quarter driven by ~$200 million in currency headwinds
Volume and price improvement offsetting ~$470 million currency impact year-to-date
Double digit organic(1) growth on volume and price in Crop Protection in the quarter
Year-to-date organic(1) growth in every region and both segments
Strong volume and price growth in Crop Protection, offset the currency headwind for the quarter, partially reversing first half headwind
Seed driving year-to-date improvement
Delivered margin expansion on higher sales and continued realization of merger-related synergies and productivity
Overcoming COVID-related headwinds to drive margin expansion
Organic sales, Operating EBITDA and Operating EBITDA Margin are non-GAAP measures. See slide 3 for further discussion.
Loss from Continuing Ops after income taxes was $(390) million and $(527) million for the three months ended September 30, 2020 and 2019, respectively, on net sales of $1,863 million and $1,911 million, respectively. Income from Continuing Ops after income taxes was $657 million and $68 million for the nine months ended September 30, 2020 and 2019, respectively, on net sales of $11,010 million and $10,863 million, respectively.
5
Driving Actions to Expand Seed Margin and Return on Investment
Seed Segment Results
Key Mid-Term Growth Drivers
✓
Net Sales
Operating EBITDA
❑ Low single digit seed price
improvement year-to-date
3Q 2020
Continued pricing
$0.7B
for value
✓
Reported
❑ Launched the 2021 price cards
for the North America season
23%
$0.5B
Organic(1)
14%
-$0.28B
❑✓
Successful Qrome® corn
-$0.30B
Launching proprietary
launch
3Q'19
3Q'20
technology
❑✓
Secured access to additional
3Q'19
3Q'20
Volume
Price
Currency
Portfolio
seed units to support Enlist
(11)%
(3)%
(9)%
-%
E3™(2) launch next year
2020 YTD
❑✓ Strong corn product
$6.3B
$6.5B
Reported
3%
Organic(1)
6%
$1.26B
$1.07B
Brevant retail penetration
performance in retail trials
❑✓ Solid Enlist E3™(2) and EnlistTM herbicides order pace
3Q'19 YTD
3Q'20 YTD
Volume
Price
Currency
Portfolio
4%
2%
(3)%
-%
3Q'19 YTD
3Q'20 YTD
✓
Productivity actions
❑ Delivered >$80 million in
merger cost savings and
productivity year-to-date
(1)
Organic sales is a non-GAAP measures. See slide 3 for further discussion.
(2)
The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Dow AgroSciences LLC and M.S. Technologies, L.L.C. Royalty income for Enlist E3® is shared with MS Technologies.
6
Accelerating the Transition to Our Technology Offerings in Soybeans
2020
20%
17%
10%
70%
Industry penetration
Corteva soybean
Corteva germplasm
Enlist acres treated
for Enlist E3™(1) soybeans
portfolio
penetration
with Enlist
TM
herbicides
Enlist E3™(1) soybeans
in Corteva Enlist E3TM(1) units
2021
~30%
>35%
~25%
>70%
Industry penetration
Corteva soybean
Corteva germplasm
Enlist acres treated
for Enlist E3™(1) soybeans
portfolio
penetration
with EnlistTM herbicides
Enlist E3™(1) soybeans
in Corteva Enlist E3TM(1) units
Taking actions to accelerate conversion to proprietary technology
(1) The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Dow AgroSciences LLC and M.S. Technologies, L.L.C. Royalty income for Enlist E3® is shared with MS Technologies.
7
Solid Progress to Re-Establish Momentum in Crop Protection
Crop Protection Segment Results
Net Sales
Operating EBITDA
3Q 2020
$1.2B
$1.3B
Reported
9%
$0.12B
$0.13B
Organic(1)
21%
3Q'19
3Q'20
3Q'19
3Q'20
Volume
Price
Currency
Portfolio
16%
5%
(11)%
(1)%
2020 YTD
Key Mid-Term Growth Drivers
✓
New product
❑ Delivered > $180 million in
organic(1)
net sales growth from
launches
new products year-to-date
❑✓ Year-to-date organic(1) sales
Scaling spinosyn
growth, up over 20%
capacity
✓
❑ Capacity expansion enabling
gains in Latin America and
Asia Pacific
✓
Manufacturing
❑ Completed 9 asset shutdowns
and 15 site optimizations since
footprint optimization
merger close
$4.5B
$4.5B
Reported
Flat
Organic(1)
7%
3Q'19 YTD
3Q'20 YTD
Volume
Price
Currency
Portfolio
5%
2%
(6)%
(1)%
$0.79B
$0.68B
3Q'19 YTD
3Q'20 YTD
✓
❑ Expect ~$150 million in cost
savings(2) next year from actions
Strategic product
✓
❑ Exiting chlorpyrifos, which
exits and divestitures
created ~$60 million in sales
volume headwind year-to-date
(1)
Organic sales is a non-GAAP measures. See slide 3 for further discussion.
(2)
Represents savings from merger-related synergies and productivity initiatives.
8
Streamlining the CP Manufacturing Assets Inherited at Spin
2017
29
Strong Bias Toward
Formulation &
Manufacturing Assets
Inherited Structure
Internal Active Ingredient
Packaging Centralized
Workforce changes necessary to
Manufacturing
inherited from legacy companies
F&P manufacturing footprint reflected
support new operating model
cost-improvement opportunities in active
combined footprint at merger close
ingredient manufacturing at merger close
2020
20
Streamlined
De-Centralized
Optimized
Manufacturing Assets
Formulation &
Active Ingredient
Manufacturing Roles
Packaging
Manufacturing
after completed and targeted
Achieved 25% reduction as a result of
Close to end-use markets to enhance
shutdowns
Increase external active ingredient
merger synergies
customer responsiveness and capitalize
manufacturing while balancing IP protection
on local currency
Taking actions to deliver incremental savings in CP manufacturing
9
Scanning the Market Backdrop for Constructive Signals
Currency headwind, predominately BRL, partially offset by >$120 million pricing for currency
New
Crop Protection
Products
$250 million in organic(2) sales
Synergies/Productivity on track to
deliver $230 million earnings
growth; $75 million of
Costs
improvement
earnings, net of ~$60 million
Expect SG&A and R&D to be relatively
in currency
flat
YTD performance underscores operational momentum to deliver on full year guidance
Guidance does not contemplate any further operational disruptions, significant changes in customers' demand or ability to pay, or further acceleration of currency impacts resulting from the COVID-19 pandemic or political instability.
Organic Sales, Operating EBITDA and Operating EPS are non-GAAP measures. See slide 3 for further discussion.
Full year 2019 information is on a pro forma basis and was determined in accordance with Article 11 of Regulation S-X.
11
Focused on Continued Execution and 2021 Setup
Growth Drivers
Seed Growth
Current commodity price levels indicate relatively flat corn acreage and soybean acreage increase in North America
Continued execution on price for value strategy globally, with mix improvements from further penetration of Qrome®
Strong momentum on Enlist E3TM1 penetration and Brevant launch
Crop Protection Growth
Continued ramp-up of new product sales, led by ArylexTM and EnlistTM herbicides and IsoclastTM insecticide
Volume growth in Spinosyns as capacity expansion continues
Currency
Headwind in 1H'21 related to BRL
Continued pricing for currency in Latin America
Synergies / Productivity
Final tranche of merger-related synergies - $200 million for 2021 to achieve $1.2B run-rate
Productivity improvements of ~$50 million, led by Crop Protection
Majority of COVID related savings expected to be sustained in 2021
Costs of Goods Sold
For Seed, monitoring yields and quality on North America harvest to evaluate any possible tailwinds from 2020 yield impacts
Portfolio Management
Slight headwinds on continued strategic rationalization of Crop Protection portfolio
Operational execution and acceleration of market opportunities key to 2021 growth
(1) The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Dow AgroSciences LLC and M.S. Technologies, L.L.C. Royalty income for Enlist E3® is shared with MS Technologies.
12
Update on Currency Management
Objective: Decrease earnings volatility associated with exchange rates
Strategy
Reduce FX earnings and cash flow volatility and improve forecast ability
Reduce FX exposure by increasing natural hedges or transferring currency risk
Choose a hedging program that delivers volatility risk reduction while minimizing costs
Apply strategy consistently with no market speculation
Mitigate and Transfer
Utilize business management levers to reduce FX exposure
Pricing actions to set customer price in USD or adjust price in local currency to recoup losses
Natural hedging strategies
Risk transfer of FX exposure to customers, suppliers, etc.
Operational adjustments to incur more costs in same currency as related revenues (longer-term)
Constant Monitoring
Address intra-year timing differences between order placement (when price is fixed) and delivery (when revenue is recognized)
Hedge Exposures
Cash flow hedging: Protect transactional EBITDA value when COGS and revenues are in different currencies
EBITDA hedging: Protect translational value of non-USD EBITDA
Balance sheet hedging: Protect Operating Earnings and EPS impact of net monetary asset
MTM
Cost Effective and Principle Based Hedging Strategy
13
Disciplined Approach To Capital Allocation
Since Spin:
Focused Investment
Growth Investments
Investments in route-to-market and multi-channel /multi-brand strategy
New product launches and ramp-up globally
Opportunistic acquisition of full-ownership of Phytogen JV
$145 million in capital committed to capacity expansion of Spinosyns insecticides
ERP harmonization investment to align disparate IT systems
Looking Forward:
Enhance Capital Return
Maintain Competitive Dividend
$485 million in dividends since Spin
Continue to target 25-35% of net income with earnings and cash flow growth
Accelerate Share Repurchases
~$200 million(1) in share repurchases since Spin despite COVID environment
The company now expects to complete the $1B share repurchase program in 2021, contingent upon market conditions
>$1 billion(2) in capital deployment since Spin aligned with strategy to generate shareholder value
Cumulative repurchases under current program as of October 30, 2020
Amount includes investments for growth, including route-to-market and branding investments, dividends, share repurchases, cash paid for acquisitions, growth-related capital expenditures and costs/capital for ERP harmonization
14
3Q 2020 Highlights
($'s in millions, except EPS)
3Q 2019
3Q 2020
Change
Net Sales
$1,911
$1,863
(3)%
GAAP Loss from Continuing Operations After Income Taxes
$(527)
$(390)
26%
Operating EBITDA(1)
$(207)
$(179)
14%
Operating EBITDA Margin(1)
(10.8)%
(9.6)%
122 bps
GAAP EPS from Continuing Operations
$(0.69)
$(0.52)
25%
Operating EPS(1)
$(0.39)
$(0.39)
Flat
3Q 2020 Net Sales Bridge ($ in millions)
$1,911
$1,863
3Q 2019
North
(1)
Latin
(1)
EMEA
(1)
Asia
(1)
Portfolio
Currency
3Q 2020
America
America
Pacific
3Q 2020 Operating EBITDA (1) Bridge ($ in millions)
$(207)
$(179)
3Q 2019 Portfolio
Currency
Volume
Price
Production
Non-
Other
3Q 2020
Production
Costs(2)
Costs(3)
Operating EBITDA margin expansion despite currency headwinds and seasonal shifts
Organic sales, Operating EBITDA, Operating EBITDA margin and Operating earnings per share are non-GAAP measures. See slide 3 for further discussion.
Production costs are net of synergies realized in the period.
Non-ProductionCosts includes costs such as selling, leveraged function costs and product development, net of synergies realized in the period.
16
3Q 2020 Operating EPS(1) Variance
Operating EPS(1) Bridge ($)
$0.03
$(0.06)
$0.02
$(0.02)
$(0.39)
$0.03
($0.39)
($0.11)
$0.11
1
2
3
Costs(2)
4
5
6
(4)
3Q'19
Currency
Volume/Price
Production
Non-Production
Change in Base
EGL
Other/Portfolio
3Q'20
Costs (3)
Tax Rate (1)
Currency
1
Currency headwinds predominately from Brazilian Real
Non-Production Costs(3)
4
Lower commissions on seasonal volume shifts, partially offset by increased investment in R&D
Volume/Price
Gains driven by strong demand for new crop protection products globally
Change in Base Tax Rate(1)
3Q'20 Base Income Tax Rate: 19.2%
3Q'19 Base Income Tax Rate: 11.8%
2
5
Production Costs(2)
3
Continued realization of merger-related synergies
On-goingproductivity actions
EGL(4)
6
After-taxexchange losses on Argentina devaluation and balance sheet hedging program
Operating earnings per share and base tax rate are non-GAAP measures. See slide 3 for further discussion. GAAP EPS for the third quarter 2019 and 2020 was $(0.69) and $(0.52), respectively
Production costs are net of synergies realized in the period.
Non-ProductionCosts includes costs such as selling, leveraged function costs and product development, net of synergies realized in the period.
EGL is defined as Exchange Gain / (Loss)
17
3Q 2020 Regional Net Sales Highlights - Crop Protection
Global Net Sales
$1.3B
$1.2B
Reported
9%
Organic(1)
21%
3Q'19
3Q'20
Volume
Price
Currency
Portfolio
16%
5%
(11)%
(1)%
Organic sales growth is a non-GAAP measure. See slide 3 for further discussion.
North America is defined as U.S. and Canada.
EMEA Is defined as Europe, Middle East and Africa.
North
Reported
Organic(1)
America(2)
2%
2%
3Q 2019
3Q 2020
Net Sales ($MM)
$397
$390
Volume Price Currency Portfolio
(3)% 1% -%-%
Volume declines driven by competitive herbicide market and shift of seed applied technologies to 4Q20
Strong early adoption of EnlistTM herbicides
EMEA(3)
Reported Organic(1)
8%
8%
3Q 2019
3Q 2020
Net Sales ($MM)
$183
$198
Volume
Price
Currency
Portfolio
4%
4%
-%
-%
Continued penetration of new products, including ArylexTM herbicide and ZorvecTM fungicide
Phase out of regulatory challenged products suppressing growth
Latin
Reported
Organic(1)
America
14%
43%
3Q 2019
3Q 2020
Net Sales ($MM)
$491
$559
Volume
Price
Currency
Portfolio
34%
9%
(29)%
-%
Strong demand for new products, including IsoclastTM insecticide, RinskorTM herbicide, and Vessarya® fungicide
Currency impact from Brazilian Real partially offset by pricing actions
Asia
Reported Organic(1)
Pacific
21%
27%
3Q 2019
3Q 2020
Net Sales ($MM)
$159
$193
Volume
Price
Currency Portfolio
24%
3%
(1)%
(5)%
Volume growth due to favorable monsoon conditions in India
Ramp up of new technologies, including ArylexTM herbicide and PyraxaltTM and IsoclastTM insecticide
18
3Q 2020 Regional Net Sales Highlights - Seed
Global Net Sales
North
Reported
Organic(1)
Latin
Reported
Organic
(1)
America(2)
57%
55%
America
9%
7%
$0.7B
Reported
$0.5B
23%
Organic(1)
14%
3Q 2019
3Q 2020
Net Sales ($MM)
$226
$97
Volume
Price
Currency
Portfolio
(44)%
(11)%
(2)%
-%
Lower volumes on more normalized season as compared to prior year
Pricing pressure due to timing of end of season customer settlements.
3Q 2019
3Q 2020
Net Sales ($MM)
$271
$246
Volume
Price
Currency
Portfolio
9%
(2)%
(16)%
-%
Volume growth on strong summer and early safrinha sales in Brazil coupled with higher volumes in Colombia and Mexico
Pricing for currency in Brazil more than offset by lower local price in Argentina
3Q'19
3Q'20
Volume
Price
Currency
Portfolio
(11)%
(3)%
(9)%
-%
Reported
Organic(1)
EMEA(3)
4%
6%
3Q 2019
3Q 2020
Net Sales ($MM)
$122
$117
Volume
Price
Currency
Portfolio
-%
6%
(10)%
-%
Asia
Reported Organic(1)
Pacific
2%
2%
3Q 2019
3Q 2020
Net Sales ($MM)
$62
$63
Volume
Price
Currency Portfolio
3%
(1)%
-%
-%
Organic sales growth is a non-GAAP measure. See slide 3 for further discussion.
North America is defined as U.S. and Canada.
EMEA Is defined as Europe, Middle East and Africa.
Price increases across most crops
Unfavorable currency impact due to the Zambian Kwacha
Market share gains and market penetration drove volume gains in corn in India
Favorable monsoon conditions drove volume and price gains in rice in India
19
3Q YTD 2020 Highlights
($'s in millions, except EPS)
3Q YTD 2019(2)
3Q YTD 2020
Change
Net Sales
$10,863
$11,010
1%
GAAP Income from Continuing Operations After Income Taxes
$68
$657
866%
Operating EBITDA(1)
$1,763
$1,851
5%
Operating EBITDA Margin(1)
16.2%
16.8%
58 bps
GAAP EPS from Continuing Operations
$0.08
$0.85
963%
Operating EPS(1)
$1.36
$1.46
7%
3Q YTD 2020 Net Sales Bridge ($ in millions)
$11,010
$10,863
3Q YTD
North
(1)
Latin
(1)
EMEA
(1)
Asia
(1)
Portfolio
Currency
3Q YTD
America
America
Pacific
2020
2019
3Q YTD 2020 Operating EBITDA (1) Bridge ($ in millions)
$1,851
$1,763
3Q YTD Portfolio
Currency Volume
Price
Production
Non-
Other
3Q YTD
Production
2019(2)
Costs(3)
2020
Costs(4)
Operating EBITDA and margin expansion from continued execution on pricing and cost savings
Organic sales, Operating EBITDA, Operating EBITDA margin and Operating earnings per share are non-GAAP measures. See slide 3 for further discussion.
Full year 2019 is on a pro forma basis and was determined in accordance with Article 11 of Regulation S-X.
Production costs are net of synergies realized in the period.
Non-ProductionCosts includes costs such as selling, leveraged function costs and product development, net of synergies realized in the period.
20
3Q YTD 2020 Regional Net Sales Highlights
North America(1)
Europe, Middle
Latin America
Asia Pacific
East, Africa
Net Sales
$5.80B
$5.82B
Reported
Flat
Organic(2)
1%
3Q YTD 19
3Q YTD 20
Volume
Price
Currency
Portfolio
1%
-%
(1)%
-%
$2.34B
$2.43B
Reported
4%
Organic (2)
8%
3Q YTD 19
3Q YTD 20
Volume
Price
Currency
Portfolio
6%
2%
(4)%
-%
$1.78B
Reported
$1.75B
1%
Organic (2)
17%
3Q YTD 19
3Q YTD 20
Volume
Price
Currency
Portfolio
11%
6%
(18)%
-%
Reported
$0.95B
$1.01B
7%
Organic (2)
13%
3Q YTD 19
3Q YTD 20
Volume
Price
Currency
Portfolio
11%
2%
(4)%
(2)%
Regional Highlights
Seed growth
New products, including Qrome®, proprietary seed treatment, and strong pricing discipline in soybeans
Successful launch of Enlist E3TM3on up to 20% of US soybean acres drove growth in EnlistTM herbicides sales
Soybean volume growth driven by area recovery
Above market growth
New route-to-market in Russia and Ukraine and share gains in Southern Europe drove volume and price gains in Seed
Strong demand for new products such as ArylexTM and RinskorTM herbicides
Headwinds as a result of phase out of regulatory challenged products suppressing growth
Currency volatility
Share gains in Brazil safrinha and summer seasons driving seed volume growth
Unfavorable currency impact from Brazilian Real partially offset by pricing actions and favorable mix
Strong demand for new products driving volume and price
New product demand
Double digit organic growth on volume and price improvements
Strong demand for corn and rice in India
Insecticide growth led by spinosyns and PyraxaltTM
1)
North America is defined as U.S. and Canada.
2)
Organic sales growth is a non-GAAP measure. See slide 3 for further discussion.
21
3)
The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Dow AgroSciences LLC and M.S. Technologies, L.L.C. Royalty income for Enlist E3® is shared with MS Technologies.
3Q YTD 2020 Regional Net Sales Highlights - Crop Protection
Global Net Sales
North
Reported
Organic(1)
Latin
Reported
Organic(1)
America(2)
2%
1%
America
5%
15%
$4.5B
$4.5B
Reported
Flat
Organic(1)
7%
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$1,562
$1,528
Volume
Price
Currency
Portfolio
-%
(1)%
-%
(1)%
Volume flat as improved spring application season was offset by competitive herbicide market, coupled with early demand in 4Q'19
Strong early adoption of Enlist
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$1,144
$1,086
Volume
Price
Currency
Portfolio
8%
7%
(20)%
-%
Strong demand for new products, including IsoclastTM insecticide and RinskorTM herbicide
Currency impact from Brazilian Real partially offset by pricing actions
EMEA(3)
Reported
Organic(1)
Asia
Reported
Organic(1)
2%
6%
Pacific
6%
12%
3Q'19 YTD
3Q'20 YTD
Volume
Price
Currency
Portfolio
5%
2%
(6)%
(1)%
Organic sales growth is a non-GAAP measure. See slide 3 for further discussion.
North America is defined as U.S. and Canada.
EMEA Is defined as Europe, Middle East and Africa.
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$1,136
$1,163
Volume
Price
Currency
Portfolio
5%
1%
(3)%
(1)%
Continued penetration of new products, including ArylexTM and RinskorTM herbicides
Unfavorable currency impact primarily due to Euro and Turkish lira
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$674
$717
Volume
Price
Currency
Portfolio
12%
-%
(3)%
(3)%
Ramp up of new technologies, including ArylexTM and RinskorTM herbicides and PyraxaltTM insecticide
Volume growth due to continued strong demand for insecticides, including spinosyns
22
3Q YTD 2020 Regional Net Sales Highlights - Seed
Global Net Sales
$6.3B
$6.5B
Reported
3%
Organic(1)
6%
3Q'19 YTD
3Q'20 YTD
Volume
Price
Currency
Portfolio
4%
2%
(3)%
-%
Organic sales growth is a non-GAAP measure. See slide 3 for further discussion.
North America is defined as U.S. and Canada.
EMEA Is defined as Europe, Middle East and Africa.
North
Reported
Organic(1)
America(2)
1%
2%
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$4,238
$4,290
Volume
Price
Currency
Portfolio
1%
1%
(1)%
-%
Higher soybean volume on recovery of planted area
New products, including Qrome®, proprietary seed treatment, and strong pricing discipline, partially offset by higher sample
EMEA(3)
Reported
Organic(1)
5%
11%
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$1,200
$1,262
Volume
Price
Currency
Portfolio
7%
4%
(6)%
-%
Volume growth on record corn sales driven by route-to-market in Eastern Europe and share gains in Southern Europe
Improved pricing from route-to-market changes offset by currency
Latin
Reported Organic(1)
America
5%
20%
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$636
$668
Volume
Price
Currency Portfolio
15%
5%
(15)%
-%
Volume growth on strong summer and early safrinha sales in Brazil coupled with higher volumes in Colombia and Mexico
Currency impact from Brazilian Real partially offset by pricing actions and improved mix
Asia
Reported Organic(1)
Pacific
8%
14%
3Q YTD
3Q YTD
2019
2020
Net Sales ($MM)
$273
$296
Volume
Price
Currency Portfolio
8%
6%
(6)%
-%
Market share gains and market penetration drove volume gains in corn in India and Pakistan
Favorable monsoon conditions drove volume and price gains in rice in India
23
Corteva
Non-GAAP Calculation of Corteva Operating EBITDA
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
In millions
As Reported
As Reported
As Reported
Pro Forma
(Loss) income from continuing operations, net of tax (GAAP)
$
(390)
$
(527)
$
657
$
68
(Benefit from) provision for income taxes on continuing operations
(117)
(104)
88
146
(Loss) income from continuing operations before income taxes (GAAP)
$
(507)
$
(631)
$
745
$
214
+ Depreciation and Amortization
285
226
868
711
- Interest income
(11)
(13)
(38)
(46)
+ Interest expense
11
19
35
67
+ / - Exchange losses (gains), net2
67
(22)
127
37
+ / - Non-operating benefits, net
(73)
(32)
(237)
(106)
+ Significant items charge
49
246
351
886
Corteva Operating EBITDA (Non-GAAP)1
$
(179)
$
(207)
$
1,851
$
1,763
1. Corteva Operating EBITDA is defined as earnings (i.e., income from continuing operations before income taxes) before interest, depreciation, amortization, non-operating benefits (costs) - net and foreign exchange gains (losses), excluding the impact of significant items. Non-operating benefits (costs) - net consists of non-operating pension and other post-employment benefit (OPEB) credits (costs), tax indemnification adjustments, environmental remediation and legal costs associated with Historical DuPont businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense.
2. The three and nine months ended September 30, 2019, on an operating basis (Non-GAAP), exclude a $(33) million exchange loss associated with the devaluation of the Argentine peso, as it is included within significant items.
24
Corteva
Segment Information
Net sales by segment
Three Months Ended September 30,
Nine Months Ended September 30,
In millions
2020
2019
2020
2019
Seed
$
523
$
681
$
6,516
$
6,347
Crop Protection
1,340
1,230
4,494
4,516
Total net sales
$
1,863
$
1,911
$
11,010
$
10,863
Corteva Operating EBITDA
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
In millions
As Reported
As Reported
As Reported
Pro Forma
Seed
$
(282)
$
(295)
$
1,255
$
1,066
Crop Protection
130
119
677
789
Corporate
(27)
(31)
(81)
(92)
Corteva Operating EBITDA (Non-GAAP)1
$
(179)
$
(207)
$
1,851
$
1,763
1. Corteva Operating EBITDA is defined as earnings (i.e., income from continuing operations before income taxes) before interest, depreciation, amortization, non-operating benefits (costs) - net and foreign exchange gains (losses), excluding the impact of significant items. Non-operating benefits (costs) - net consists of non-operating pension and other post- employment benefit (OPEB) credits (costs), tax indemnification adjustments, environmental remediation and legal costs associated with Historical DuPont businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense.
Operating EBITDA margin
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
As Reported
As Reported
As Reported
Pro Forma
Seed
-53.9%
-43.3%
19.3%
16.8%
Crop Protection
9.7%
9.7%
15.1%
17.5%
Total Operating EBITDA margin (Non-GAAP)2,3
-9.6%
-10.8%
16.8%
16.2%
2. Operating EBITDA margin is Operating EBITDA as a percentage of net sales.
3. Operating EBITDA margin %'s for Corporate are not presented separately above as they are not meaningful; however, the results are included in the Total margin %'s above.
25
Corteva significant items (Pretax)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
In millions
As Reported
As Reported
As Reported
Pro Forma
Seed
Loss on divestiture
-
-
-
(24)
Restructuring and asset-related charges - net
(9)
(47)
(154)
(123)
Amortization of inventory step up
-
(15)
-
(67)
Total Seed
(9)
(62)
(154)
(214)
Crop Protection
Loss on divestiture
-
-
(53)
-
Restructuring and asset-related charges - net
(40)
1
(98)
(24)
Total Crop Protection
(40)
1
(151)
(24)
Corporate
Integration and separation costs
-
(152)
-
(582)
Loss on early extinguishment of debt
-
-
-
(13)
Restructuring and asset-related charges - net
-
-
(46)
(20)
Argentina devaluation
-
(33)
-
(33)
Total Corporate
-
(185)
(46)
(648)
Total significant items by segment (Pretax)
(49)
(246)
(351)
(886)
Total tax impact of significant items
22
40
81
52
Tax only significant items
-
38
10
38
Total significant items charge, net of tax 1
$
(27)
$
(168)
$
(260)
$
(796)
1. Refer to page A-11 of the Financial Statement Schedules for further information on significant items, including tax only items.
26
Corteva
Segment Information - Price, Volume Currency Analysis
Region
Q3 2020 vs. Q3 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$
(millions)
%
$
(millions)
%
Product Mix
Volume
Currency
Portfolio / Other
North America1
$
(136)
-22%
$
(134)
-22%
-4%
-18%
0%
0%
EMEA1
10
3%
22
7%
4%
3%
-4%
0%
Latin America
43
6%
230
30%
5%
25%
-24%
0%
Asia Pacific
35
16%
44
20%
1%
19%
-1%
-3%
Rest of World
88
7%
296
23%
5%
18%
-15%
-1%
Total
$
48
-3%
$
162
9%
2%
7%
-11%
-1%
Seed
Q3 2020 vs. Q3 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$
(millions)
%
$
(millions)
%
Product Mix
Volume
Currency
Portfolio / Other
North America1
$
(129)
-57%
$
(125)
-55%
-11%
-44%
-2%
0%
EMEA1
(5)
-4%
7
6%
6%
0%
-10%
0%
Latin America
(25)
-9%
19
7%
-2%
9%
-16%
0%
Asia Pacific
1
2%
1
2%
-1%
3%
0%
0%
Rest of World
(29)
-6%
27
6%
0%
6%
-12%
0%
Total
$
(158)
-23%
$
(98)
-14%
-3%
-11%
-9%
0%
Crop Protection
Q3 2020 vs. Q3 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$ (millions)
%
$ (millions)
%
Product Mix
Volume
Currency
Portfolio / Other
North America1
$
(7)
-2%
$
(9)
-2%
1%
-3%
0%
0%
EMEA1
15
8%
15
8%
4%
4%
0%
0%
Latin America
68
14%
211
43%
9%
34%
-29%
0%
Asia Pacific
34
21%
43
27%
3%
24%
-1%
-5%
Rest of World
117
14%
269
32%
7%
25%
-17%
-1%
Total
$
110
9%
$
260
21%
5%
16%
-11%
-1%
North America is defined as U.S. and Canada. EMEA is defined as Europe, Middle East and Africa.
Organic sales is defined as price and volume and excludes currency and portfolio impacts.
27
Corteva
Segment Information - Price, Volume Currency Analysis
Region
Nine Months Ended September 30, 2020 vs. Nine Months Ended September 30, 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$ (millions)
%
$ (millions)
%
Product Mix
Volume
Currency
Portfolio / Other
North America1
$
18
0%
$
45
1%
0%
1%
-1%
0%
EMEA1
89
4%
195
8%
2%
6%
-4%
0%
Latin America
(26)
-1%
296
17%
6%
11%
-18%
0%
Asia Pacific
66
7%
119
13%
2%
11%
-4%
-2%
Rest of World
129
3%
610
12%
4%
8%
-9%
0%
Total
$
147
1%
$
655
6%
2%
4%
-4%
-1%
Seed
Nine Months Ended September 30, 2020 vs. Nine Months Ended September 30, 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$ (millions)
%
$ (millions)
%
Product Mix
Volume
Currency
Portfolio / Other
North America1
$
52
1%
$
65
2%
1%
1%
-1%
0%
EMEA1
62
5%
126
11%
4%
7%
-6%
0%
Latin America
32
5%
124
20%
5%
15%
-15%
0%
Asia Pacific
23
8%
37
14%
6%
8%
-6%
0%
Rest of World
117
6%
287
14%
5%
9%
-8%
0%
Total
$
169
3%
$
352
6%
2%
4%
-3%
0%
Crop Protection
Nine Months Ended September 30, 2020 vs. Nine Months Ended September 30, 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$
(millions)
%
$
(millions)
%
Product Mix
Volume
Currency
Portfolio / Other
North America1
$
(34)
-2%
$
(20)
-1%
-1%
0%
0%
-1%
EMEA1
27
2%
69
6%
1%
5%
-3%
-1%
Latin America
(58)
-5%
172
15%
7%
8%
-20%
0%
Asia Pacific
43
6%
82
12%
0%
12%
-3%
-3%
Rest of World
12
0%
323
11%
3%
8%
-10%
-1%
Total
$
(22)
0%
$
303
7%
2%
5%
-6%
-1%
North America is defined as U.S. and Canada. EMEA is defined as Europe, Middle East and Africa.
Organic sales is defined as price and volume and excludes currency and portfolio impacts.
28
Corteva
Segment Information - Price, Volume Currency Analysis
Seed Product Line
Q3 2020 vs. Q3 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$
(millions)
%
$ (millions)
%
Product Mix
Volume
Currency
Portfolio / Other
Corn
$
(69)
-18%
$
(30)
-8%
-2%
-6%
-10%
0%
Soybeans
(52)
-31%
(33)
-20%
14%
-34%
-11%
0%
Other oilseeds
18
41%
20
45%
36%
9%
-4%
0%
Other oilseeds
(55)
-57%
(55)
-56%
-58%
2%
-1%
0%
Total
$
(158)
-23%
$
(98)
-14%
-3%
-11%
-9%
0%
Crop Protection Product Line
Q3 2020 vs. Q3 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$ (millions)
%
$ (millions)
%
Product Mix
Volume
Currency
Portfolio / Other
Herbicides3
$
9
2%
$
62
11%
0%
11%
-8%
-1%
Insecticides3
65
20%
99
30%
4%
26%
-10%
0%
Fungicides3
16
7%
74
30%
10%
20%
-23%
0%
Other3
20
25%
25
31%
24%
7%
-6%
0%
Total
$
110
9%
$
260
21%
5%
16%
-11%
-1%
2. Organic sales is defined as price and volume and excludes currency and portfolio impacts.
3. Prior periods have been reclassified to conform to current period presentation.
29
Corteva
Segment Information - Price, Volume Currency Analysis
Seed Product Line
Nine Months Ended September 30, 2020 vs. Nine Months Ended September 30, 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$
(millions)
%
$
(millions)
%
Product Mix
Volume
Currency
Portfolio / Other
Corn
$
75
2%
$
211
5%
2%
3%
-3%
0%
Soybeans
85
7%
106
8%
3%
5%
-1%
0%
Other oilseeds
60
13%
78
17%
10%
7%
-4%
0%
Other oilseeds
(51)
-12%
(43)
-10%
-11%
1%
-2%
0%
Total
$
169
3%
$
352
6%
2%
4%
-3%
0%
Crop Protection Product Line
Nine Months Ended September 30, 2020 vs. Nine Months Ended September 30, 2019
Percent Change Due To:
Net Sales Change (GAAP)
Organic Change (Non-GAAP)2
Local Price &
$
(millions)
%
$
(millions)
%
Product Mix
Volume
Currency
Portfolio / Other
Herbicides3
$
(23)
-1%
$
111
5%
1%
4%
-5%
-1%
Insecticides3
60
5%
137
12%
4%
8%
-6%
-1%
Fungicides3
(53)
-7%
46
6%
2%
4%
-11%
-2%
Other3
(6)
-2%
9
4%
5%
-1%
-6%
0%
Total
$
(22)
0%
$
303
7%
2%
5%
-6%
-1%
2. Organic sales is defined as price and volume and excludes currency and portfolio impacts.
3. Prior periods have been reclassified to conform to current period presentation.
30
Corteva
Non-GAAP Calculation of Corteva Operating EPS
Three Months Ended September 30,
2020
2019
2020
2019
$ (millions)
$ (millions)
EPS (diluted)
EPS (diluted)
As Reported
As Reported
As Reported
As Reported
Loss from continuing operations attributable to Corteva (GAAP)
$
(392)
$
(516)
$
(0.52)
$
(0.69)
Less: Non-operating benefits - net, after tax2
56
23
0.08
0.03
Less: Amortization of intangibles (existing as of Separation), after tax
(126)
(80)
(0.17)
(0.11)
Less: Significant items charge, after tax
(27)
(168)
(0.04)
(0.22)
Operating Loss (Non-GAAP)1
$
(295)
$
(291)
$
(0.39)
$
(0.39)
Nine Months Ended September 30,
2020
2019
2020
2019
$ (millions)
$ (millions)
EPS (diluted)
EPS (diluted)
As Reported
Pro Forma
As Reported
Pro Forma
Income from continuing operations attributable to Corteva (GAAP)
$
639
$
58
$
0.85
$
0.08
Less: Non-operating benefits - net, after tax2
180
84
0.24
0.11
Less: Amortization of intangibles (existing as of Separation), after tax
(377)
(250)
(0.50)
(0.33)
Less: Significant items charge, after tax
(260)
(796)
(0.35)
(1.06)
Operating Earnings (Non-GAAP)1
$
1,096
$
1,020
$
1.46
$
1.36
1. Operating earnings (loss) is defined as net income (loss) from continuing operations attributable to Corteva excluding the after-tax impact of significant items, non-operating benefits - net, and amortization of intangible assets (existing as of Separation). Although amortization of intangible assets (existing as of Separation) is excluded from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in amortization of additional intangible assets.
2. Non-operating benefits - net consists of non-operating pension and other post-employment benefit (OPEB) benefits (costs), tax indeminfication adjustments, environmental remediation and legal costs associated with legacy EID businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense.
31
Corteva
Non-GAAP Calculation of Corteva Base Tax Rate
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
As Reported
As Reported
As Reported
Pro Forma
(Loss) income from continuing operations before income taxes (GAAP)
$
(507)
$
(631)
$
745
$
214
Add: Significant items - charge
49
246
351
886
Non-operating benefits - net
(73)
(32)
(237)
(106)
Amortization of intangibles (existing as of Separation)
162
100
501
314
Less: Exchange (losses) gains, net2,3
(67)
22
(127)
(37)
(Loss) income from continuing operations before income taxes, significant
items, non-operating benefits - net, amortization of intangibles (existing as
of Separation), and exchange (losses) gains, net (Non-GAAP)
$
(302)
$
(339)
$
1,487
$
1,345
(GAAP)
$
(117)
$
(104)
$
88
$
146
Add: Tax benefits on significant items charge
22
78
91
90
Tax expenses on non-operating benefits - net
(17)
(9)
(57)
(22)
Tax benefits on amortization of intangibles (existing as of Separation)
36
20
124
64
Tax benefits (expenses) on exchange (losses) gains, net
18
(25)
3
(13)
(Benefit from) provision for income taxes on continuing operations before
significant items, non-operating benefits - net, amortization of intangibles
(existing as of Separation), and exchange (losses) gains, net (Non-GAAP)
$
(58)
$
(40)
$
249
$
265
Effective income tax rate (GAAP)
23.1%
16.5%
11.8%
68.2%
Significant items, non-operating benefits, and amortization of intangibles (existing as
of Separation) effect
-2.5%
-11.8%
6.3%
-46.9%
Tax rate from continuing operations before significant items, non-operating benefits
- net, and amortization of intangibles (existing as of Separation)
20.6%
4.7%
18.1%
21.3%
Exchange (losses) gains, net effect
-1.4%
7.1%
-1.4%
-1.6%
Base income tax rate from continuing operations (Non-GAAP)1
19.2%
11.8%
16.7%
19.7%
Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), significant items, amortization of intangibles (existing as of Separation), and non- operating benefits - net.
Refer to page A-16 of the Financial Statement Schedules for further information on exchange gains (losses).
Pre-taxexchange gains (losses), net for the three and nine months ended September 30, 2019, on an operating basis (Non-GAAP), excludes a $(33) million exchange loss associated with the devaluation of the Argentine peso, as it is included within significant items.
Corteva Inc. published this content on 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2020 10:16:00 UTC
Canada
Deutschland
España
France
Italia
Schweiz (DE)
United Kingdom
Report
