Corteva, Inc. Q1 profit decreases, but beats estimates

• 1Q results in line with expectations and mostly constructive ag economy

• Strength of Seed performance demonstrates global demand for top technology

• Crop Protection declines reflect just-in-time purchases and residual inventory imbalances

• FY guidance unchanged, 2024 outlook supported by controllable levers

Corteva, Inc. (NYSE: CTVA) (″Corteva″ or the ″Company″) reported financial results for the three months ended March 31, 2024.

1Q 2024 Results Overview

First Quarter 2024 Highlights

• First quarter 2024 net sales decreased 8% versus prior year. Organic¹ sales decreased 6% in the same period.

• Seed net sales grew 2% and organic¹ sales increased 5%. Price was up 6% globally, led by continued execution on the

• Company’s price for value strategy and favorable product mix. Volume growth in North America from higher corn deliveries was offset by delayed demand in EMEA² due to unfavorable weather.

• Crop Protection net sales decreased 20% and organic¹ sales declined 21%, on expected industry headwinds globally. Volume declines were against a strong prior year comparison and primarily due to farmer purchases closer to application window, as well as weather and destocking impacts in EMEA². Price was down 3% due to a competitive environment in most regions.

• GAAP income and earnings per share (EPS) from continuing operations were $376 million and $0.53 per share for the first quarter 2024, respectively.

• Operating EBITDA¹ and Operating EPS¹ were $1.03 billion and $0.89 per share for the first quarter 2024, respectively.

• The Company reaffirmed full-year 2024 guidance³ and expects net sales in the range of $17.4 billion to $17.7 billion. Operating EBITDA¹ is expected to be in the range of $3.5 billion to $3.7 billion. Operating EPS¹ is expected to be in the range of $2.70 to $2.90 per share. Cash provided by operating activities – continuing operations is expected to be in the range of $2.1 billion to $2.6 billion. Free Cash Flow1 is expected to be in the range of $1.5 billion to $2.0 billion. The Company plans to repurchase approximately $1.0 billion shares in 2024.

″Corteva’s first quarter 2024 results were largely as expected. The Seed business once again delivered exceptional performance driven by our advantaged technology and latest product lineup, reflecting farmers’ continued investment in products that consistently deliver quality, yield and value.

On Crop Protection, as anticipated, we faced headwinds as the industry continues to work through residual inventory imbalances in key regions and farmers are shifting to just-in-time purchasing. We are expecting growth in the second half of 2024 driven by our differentiated portfolio, leading biologicals products and cost actions.

As a result, we are reaffirming full year 2024 guidance as well as reiterating our confidence in the previously-announced 2025 financial framework.″

Chuck Magro

Chief Executive Officer

Seed Summary

Seed net sales were $2.8 billion in the first quarter of 2024, up from $2.7 billion in the first quarter of 2023. The sales increase was driven by a 6% increase in price, partially offset by a 2% unfavorable currency impact, and a 1% decline in both volume and portfolio.

Price gains were driven by strong execution globally, led by EMEA², as farmers prioritize the use of top technology to drive higher yields. Volume gains in North America from higher corn deliveries were offset by volume declines in EMEA2 due to delayed demand from unfavorable weather. Unfavorable currency impacts were led by the Turkish lira.

Segment operating EBITDA was $748 million in the first quarter of 2024, up 15% from the first quarter of 2023. Price execution, improvement in net royalty expense, and ongoing cost and productivity actions more than offset higher commodity and production costs, and the unfavorable impact of currency. Segment operating EBITDA margin improved by approximately 300 basis points versus the prior-year period.

Crop Protection Summary

Crop Protection net sales were approximately $1.7 billion in the first quarter of 2024 compared to approximately $2.2 billion in the first quarter of 2023. The sales decline was driven by an 18% decrease in volume, a 3% decrease in price, and a 1% unfavorable currency impact, partially offset by a 2% favorable impact from portfolio.

The decrease in volume against a strong prior year comparison was primarily due to farmer purchases closer to the application window, as well as weather and destocking impacts in EMEA². Price declines in North America and Latin America due to

competitive market dynamics were partially offset by pricing gains in EMEA to largely offset currency. Unfavorable currency impacts were primarily related to the Turkish lira.

Segment operating EBITDA was $310 million in the first quarter of 2024, down 49% from the first quarter of 2023. Volume declines and unfavorable mix, pricing pressure, the unfavorable impact of currency, and raw material cost inflation, more than offset productivity actions. Segment operating EBITDA margin contracted by more than 970 basis points versus the prior-year period.

2024 Guidance

The global outlook for agriculture is stable with mostly constructive fundamentals in 2024. There was record-setting demand for grain, oilseeds, feed, and biofuels in 2023, and we expect that to grow in 2024. On-farm demand for inputs remains healthy and farmers continue to prioritize the need for top-tier technology, despite the normalization of commodity prices. The global Crop Protection market remains imbalanced after the significant destocking in 2023, however we expect to see market growth in the second half of 2024.

Corteva expects net sales in the range of $17.4 billion to $17.7 billion, growth of 2% at the mid-point. Operating EBITDA¹ is expected to be in the range of $3.5 billion to $3.7 billion, growth of 6% at the mid-point. Operating EPS¹ is expected to be in the range of $2.70 to $2.90 per share, up 4% at the mid-point, which reflects higher earnings partially offset by interest expense and a higher base tax rate.

Cash provided by operating activities – continuing operations is expected to be in the range of $2.1 billion to $2.6 billion. Free Cash Flow¹ is expected to be in the range of $1.5 billion to $2.0 billion. The Company plans to repurchase approximately $1.0 billion shares in 2024.

The Company is not able to reconcile its forward-looking non-GAAP financial measures, except for Free Cash Flow, to its most

comparable U.S. GAAP financial measures, as it is unable to predict with reasonable certainty items outside of its control, such as

Significant Items, without unreasonable effort.