Corteva, Inc. (CTVA) Earnings Call Transcript & Summary

Good afternoon, and thank you for joining us. I'm Rafa Soares, Head of Investor Relations for Corteva. It's great to have you here today. We have prepared presentation slides to supplement our remarks during this meeting, which are posted on the Investor Relations section of the Corteva website and through the link to our webcast. We will open this afternoon with remarks from Luke Kissam, Chief Executive Officer; Luke will be followed by Dr. Reza Rasoulpour, Chief Technology Officer; and Brook Cunningham, Chief Commercial Officer. After the short break, we will hear from Ralph Ford, Chief Integrated Operations Officer; and finally, Jeff Rudolph Chief Financial Officer, who will outline our financial framework. We will then conclude the day with a Q&A session with all the leaders. During this meeting, we will make forward-looking statements, which are our expectations about the future. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Our actual results could materially differ from these statements due to these risks and uncertainties including, but not limited to those discussed at this meeting and in the Risk Factors section of reports filed with the SEC. We do not undertake any duty to update any forward-looking statement. Please note in today's presentation, we will be making reference to certain non-GAAP financial measures. Reconciliations of non-GAAP measures can be found at the end of this presentation or in other investor materials available in our Investor Relations website. Welcome to Corteva's 2026 Investor Day. [Presentation]

Please welcome Chief Executive Officer, Luther Kissam.

All right. Somebody all tell me we need to get excited and have a little excitement this afternoon after sitting through the longest lunch break in the history of New York, I hope everybody is excited. That saw we're trying to do the best we could there. But good afternoon, everybody. Thank all of you for coming. We really appreciate it. My name is Luke Kissam, and I'm honored to be here with you today as we begin the next chapter at Corteva. A chapter that we expect to be defined by innovation, improved execution and an unwavering commitment to our stakeholders. I grew up around farming, and I learned early on in my life that farming is synonymous with optimism. Farmers work really hard. They plant their seeds every year and they pray for rain. They make decisions with uncertainties like weather, commodity prices, pest and weed resistance and input costs circling all around them. Yet every year at the end of that season, they harvest their crop and they feed the world. That's a noble profession, and we're honored to be able to help them toward that cause. Corteva's story doesn't begin today. The business has been around for years, and it's always focused on improving its portfolio, expanding margins and launching solutions to meet the needs of growers. What we're talking about today is how we build on that past success. In a little while, Reza's going to talk about our innovation pipeline. Brook and Ralph are going to talk about how we're going to execute effectively and turn that pipeline in its sustainable and profitable growth. Jeff is then going to walk through what that means from a financial standpoint and how we think about capital deployment. My job is pretty easy. I'm just supposing to explain how all that fits together and why I believe that this business can create consistent long-term value for our stakeholders. Let me start with the messages I want you to take away from the day. First, Corteva is a pure-play crop protection company with a history of successful execution. Second, innovation provides the opportunity for our sustained growth. The problems that farmers face today are getting harder and harder to solve. Corteva can deliver solutions that have better economics for the farmer and for Corteva, and that capability is a huge competitive advantage. Third, customer focus turns innovation into adoption and value capture. We have to understand the needs of the grower and solve those problems in a way that works in the real world. Fourth, execution turns innovation, innovative solutions into results. and disciplined capital allocation drives future growth and increasing returns for our stakeholders. That's the Corteva system. We innovate, we execute, we allocate capital with discipline and we do it over again and again and again, always with a focus on our growers and our stakeholders. Now look, competitive pressure is real. Farm economics matter. Channel inventory and routes to market matter. Regulations always change. We understand all that. But Corteva has the ability to innovate, execute and allocate capital effectively enough to grow in that environment. The purpose of today is for us to tell you why. We're a team of approximately 9,000 colleagues in 110 countries who wake up every day thinking about agriculture. They're supported by 25 R&D facilities in more than 8,000 patents. As you can see from these charts, Corteva has a balanced portfolio. We're not a one-trick pony. We're not dependent on any one geography, one crop, one segment or one active ingredient. And that balance is critical because products evolve and grower needs change over time. Our goal will be to keep that portfolio balanced, relevant differentiated and aligned with the needs of growers. Now since 2020, this has been a tough market, but the business has delivered good results. Driven by new products, revenue has increased by over $1 billion, while EBITDA margins expanded by approximately 250 basis points on a segment basis. During that same period, Corteva improved the quality of its portfolio as well. We exited approximately $0.5 billion of low-margin products and replace them with new solutions that demanded higher margins. We invested in an industry-leading biologicals platform, which helped increase the percentage of our portfolio that is differentiated from 45% to approximately 65% of revenue. And finally, we increased our investment in R&D. As shown on Slide 10, as you can see, we must continue to get better because farming is getting harder and harder. The world needs more agricultural output, but the land base is fixed or shrinking. Weather and climate stress are putting pressure on yield. You have resistance and pest shifts require product replacement and new modes actions and regulations continue to tighten all over the world. Farmers need better solutions to these increasingly complex challenges, and Corteva has always excelled in an environment like that. We've had a history of innovation success. Corteva launched 7 new actives in the past 10 years. That's more than anybody else in the industry. And those actives are contributing approximately $1.4 billion of revenue in 2026 at average margin 10 to 15 percentage points higher than the overall portfolio average. Going forward, we have 12 new solutions poised to launch over the next decade, 5 of which are biologicals. These 12 novel solutions have the potential to create approximately $4 billion of peak revenue while meeting our margin and profit expectations for differentiated products. So let's take a high-level look at this portfolio on page 12. Every crop protection company eventually faces some combination of product maturity, competitive pressure, resistance or regulatory change, an innovative organization replaces older products with newer and better solutions. To be successful, that pipeline has to launch solutions to problems that the growers are facing and the grower has to see an economic benefit in that solution versus the alternative. And the girl has to be willing to pay a price consistent with the producers' profit and return expectations. And that's exactly what this pipeline represents. The pipeline is balanced. It's not one product, one crop or one geography. It's a multiyear multi-segment innovation strategy, and it's focused on some of the toughest problems that growers face. It's important to note that this innovation is not all invented by Corteva. Strong innovation companies are intentional about where they invent, where they partner and where they acquire capabilities. We're agnostic as to where the idea came from. For example, our acquisition of Biotelliga strengthened our capabilities in fungal biology, biocontrol as well as natural product discovery. Our collaboration on [ immasoxefin ] will expand our ability to provide growers with advanced weed control solutions with effectiveness against some of the most difficult herbicide-resistant weeds out there. and our recently announced joint venture with Global Chem will combine each company's complementary strengths to accelerate innovations in crop protection. Our goal is to access the best means of innovation to provide value for our farmers and our stakeholders, whether that comes from our own R&D, partnerships or targeted acquisitions. As you can see on Slide 13, our approach has been and will continue to be to focus resources where differentiated solutions matter and where the value we create justifies the investment. That gets back to the grower being able to calculate the benefit of Corteva's solution versus the alternative and being willing to pay for that solution. Our objective will be to sell value-based solutions, not products. We'll combine that focus on differentiated solutions with an enterprise-wide focus on low cost and productivity improvements. That type of focus on execution leads to structural cost savings that compound over time. Ralph is going to share some really good examples of that in his presentation. This operating system has allowed Corteva to lead the industry in margin expansion through the ag cycle. As I mentioned earlier, Corteva expanded EBITDA margins by about 250 basis points since 2020. And we've reinvested those additional profits into further portfolio and productivity improvements. We know how to do what needs to be done. We've proven that this playbook works. The opportunity is to make it work better, make it work faster and make it work more consistently. The question that I think about often is, if I had $1, where would I put it? Here's what I know. We're going to continue to invest to operate this business safely and reliably. We're going to continue to invest in projects that enable us to improve productivity and operate more efficiently and effectively. We must continue to fund innovation that drives organic growth. And we will return cash to shareholders via dividends and targeted stock buybacks. And finally, we'll pursue accretive acquisitions and partnerships that accelerate or derisk our strategy. And we're going to do all of that while maintaining an investment-grade balance sheet. We're going to allocate every dollar in a way that will strengthen the business, improve returns and create value for our stakeholders. Now strategy is only good as a team that executed and the culture that they help create. The management team that you see on Slide 15 is built for the opportunities that lie ahead. Each one is talented and brings relevant and diverse experiences across chemicals, agriculture and industrials. We are all aligned on our strategy and the culture that we need to cultivate in order to win in any market condition. We also have a very talented Board that understands its role in governance and takes that role very seriously. Their expertise and experience dovetail perfectly with our strategy. Good governance creates clarity, accountability and discipline. And that's exactly what we have at Corteva. As you can see on Slide 16, our strategy is pretty clear. Innovation creates the opportunity. Execution turns opportunity into profitable growth, and disciplined capital allocation turns profitable growth into sustainable value. We start by understanding what farmers need, higher yields, better economics, resistance management, sustainability and simplicity, innovation provides those solutions. But innovation only creates value when it solves a real problem and a grower can readily see the benefit in that solution over the alternative. That means focusing on markets where farmers can pay a price for that differentiated solution that is consistent with our profit and return expectations. We do that by bringing chemistry biologicals and Seed Applied Technologies together into solutions that deliver better outcomes for that grower. That translates into more profit per acre for that grower and for Corteva. Then we must see continuous improvement in the execution across our enterprise. That mindset has to be embedded in our DNA. It means getting products registered quickly, launching successfully, manufacturing reliably, servicing customers well and relentlessly pursuing productivity improvements. Then we've got to be great stewards of our capital. So the strategy is pretty simple: solve the hardest girl problems, commercialize differentiated solutions, operate with discipline and efficiency and allocate capital like owners. Investors have many choices in where they can invest. Let me close by telling you what they can expect of an investment in Corteva. Corteva is a global crop protection company with a balanced portfolio and a history of top-tier performance through the cycle. We have a proven track record and a playbook that works. Second, we have a robust pipeline of solutions to some of the toughest issues farmers are facing, and Reza is going to share those with you in a second. Third, cost discipline and productivity are part of our DNA. We have a continuous improvement mindset and a list of opportunities for productivity and margin gains. We're committed to an investment-grade balance sheet and strong cash flow generation that should provide financial flexibility. And fifth, we will be disciplined and intentional with our capital deployment. Jeff is going to review the market assumptions with you that we included in the forecast in his presentation. But let me address pricing for a second. Since 2023, this business has experienced sustained pricing headwinds, essentially wiping out the pricing gains achieved during the COVID years. Recently, a manufacturer announced a price reduction in North America on an older herbicide used in corn and soybeans. I'd tell you that both those points so that you realize this, pricing pressure is real, but it's not new. Producers have always manage product life cycles in a way that they think is best for them. How we anticipate and react to those actions has always been critical and will always be critical in how we manage our business and deliver value to our stakeholders. That's why I focus so much today on innovation and productivity. Our playbook allows us to outperform in any pricing environment. Innovation will lead to differentiated solutions that low-cost producers can't legally copy or technically replicate. A focus on productivity across the enterprise drive structural cost savings. That allows us to match a lower price if we choose to do so. And we might do that if we don't yet have a differentiated solution for an application but still want to provide options for the grower or if we want to protect shelf space with the distribution. My point is that we don't need pricing tailwinds to deliver the 3-year plan that we're sharing today. We're assuming an annual pricing headwind of roughly 1% in our assumptions. In spite of that, at the midpoint, we expect to deliver approximately 6% compounded annual EBITDA growth by 2029, with around 150 basis points of margin improvement and around $2.4 billion of cumulative cash flow from operations. Now our job is to take the opportunity that innovation provides sprinkling, excellence in execution and add a little disciplined capital allocation and turn these opportunities and to outsize returns for our shareholders. Thank you for joining us here today. Thanks for listening, and I look forward to your questions later on. [Presentation]

Please welcome Chief Technology Officer, Reza Rasoulpour.

Good afternoon. My name is Reza. I'm CTO for Corteva, and I'm really excited to be here with you to share how Corteva's R&D engine creates value. At the end of the day, standing here in New York City, I want you to appreciate that farming is hard. Farmers have huge complexities facing them. And today, I'm going to share with you some examples of how the challenges of the future cannot be solved with yesterday's solutions. Our strategy is a simple one. deliver the innovation that solves the problem for a grower that they cannot solve in any other way because when we create value for that grower that they can see and are willing to pay for, then we share in that value. So let me start with the case study to exemplify this point, and we're going to go to Asia, where 90% of global rights production occurs, and I'm going to introduce you to this little insect here, the brown plant hopper. Due to macro trends of pest pressure evolving, resistance developing weather changes, this pest can cause significant damage, up to $2 billion of losses in India alone. And if you look at the picture at the top right, you can see how significant of an issue this would be on a rest field. It's a productivity problem. But it's also a grower livelihood problem and a food security problem. This is the sweet spot where Corteva R&D delivers with unique solutions like Pyraxalt. It breaks resistance, provides superior control that you can see and gives farmers a truly new solution for a problem that existing chemistries simply cannot solve. And that's the broader message I want you to take away today. Generic products have place, but they are limited because they replicate tools that already exist. They do not provide the new modes of action needed to overcome resistance and address evolving past pressures. This is where we focus. As nature creates these greater grower challenges through these macro trends, we provide a new solution to these emerging problems. The more of these foundational challenges in agriculture compound, there's an increased need for innovation, and these unmet needs are where we focus. So if you look at these 4 different areas, our R&D engine is aligned to these areas of disease control, insect control, weed control and plant performance more than $100 billion of opportunity, addressable market opportunities on this slide. Note that you don't see biologicals or seed treatment called out separately because for R&D, it's integrated into how we deliver solutions to our farmer customers. Within these 4 areas, we focus on that intersection between the unmet grower need and our ability to deliver a differentiated solution. That's how we stay laser-focused, keep the customer at the center of our R&D engine. We transform innovation into customer value by solving problems no one else can in those 4 areas. We do this through internal and external innovation. Some key capabilities that make us different from the competition, our microbial discovery platform, our integrated development platform and our predictive safety platforms. So today, I'm going to cover 5 things. The first one, I'm going to share with you our track record. Secondly, I'm going to talk about these differentiated technologies and how they provide value. Then we're going to go and I'm going to share with you some case studies from around the world to show you how our solution is better than the next alternative that a grower has. And then finally, we're going to end with our pipeline and the value created. So look, R&D is hard. This isn't just about discovering things. It's about taking candidates to a decade of testing and regulatory to bring them to the market. Therefore, a key performance indicator of any R&D organization is how many actives have you launched. We've launched 7 in the last decade. That's more than the competition, and we do this and deliver value to the growers. So if you move to the middle, these aren't just launches for their own sake. We've translated those actives into $1.4 billion of 2026 estimated revenue. And importantly, we've taken those actives and the other actives within our portfolio, mix them together to come up with our new formulations. We've launched over 1,000 new products since 2020. That has also translated into 3,200 regulatory approvals from our global teams and 3,800 new patents in order to protect our innovation. Now what we're poised to do in the future, it's even more impressive. We're sitting on an $11 billion pipeline. That's up $2 billion since 2023. And that's coming from pipeline advancements, expansion into new markets, new opportunities. We're poised to launch 12 new actives in the next decade, 7 conventionals and 5 biologicals. And our R&D efficiency, which we're measuring as the pipeline value over our R&D spend is 2x the competitor average. So this is not just science for science sake, it's not a science for our folks. This is about creating value time and time again. So how do we do it? What's our secret sauce? I'm going to share with you 3 key platforms that we use to discover, develop and deliver our actives and turn them into solutions. Let's start on the left with Discovery. Finding a new active is not like looking for one grain of sand in an hour glass. It's like finding one grain of sand on the entire planet. So how does anyone do that? Will they modify existing actives, maybe they take a protein and they do a lot of hit on it, maybe they look at pharma data. Well, the way that we do it is a very unique way. We use our proprietary microbial discovery library. These are 700,000 strains unique to us. It's a unique source of inspiration. Think of it as our own private beach. No one else has access. So through this, we discover natural products. We use that inspiration to inspire us for our conventional chemistry. And I want you to appreciate that without a novel source of inspiration, it is difficult to discover something truly new something that creates differentiated value instead of just another me too. That's one reason why we have a clear advantage against the competition regardless of if they're based in the Americas, in Europe or in China. Because the size and scale of this library, AI is so critical, and it allows us to go faster. Proprietary AI tools help us sift through this sand, 1,000 times faster than we could a few years ago. That's taking us from weeks to clicks. And we do this at 3x higher success rate. Now discovery is only the first part of the process. We need to move on to development. That's the platform in the middle. Our development scales from fermentation to formulation to global field characterization, identifying the crops, the markets, the formulations where our products can provide the most value. This is a highly automated and integrated platform within Corteva. Again, AI helps, allows us to go 2x faster in formulation development from 12 to 6 months and 2.5x faster with our proprietary fermentation capabilities. That enables biologicals like the spinosyns franchise, Nutricia, Inatreq. Now moving on to our third platform Look, we have to deliver the products, right? So safety expectations for human health, environmental stewardship, regulatory standards, societal expectations, these are all increasing. That is why predictive safety is baked in to the earliest stages of our process. It's designing, developing adaptives. And that's important because your regulatory right, you can get products on market faster and you can stay on market longer. AI, again, helps us. We go 12x faster in Safety Assessment than before from 6 years to 6 months and 5x more actionable safety insights. That helps us pivot deface or derisk our pipeline. So together, these platforms work in a really integrated way, which segments us from the industry. Now I want to show you the results of this R&D engine in practice. I'm going to go through an example from each one of our 4 segments, and we're going to start on the top left corner of our R&D engine with disease control. So this is Haviza. Haviza is going to set the new standard in Asian soybean rust control. Brazil is the largest soybean producer in the world with over 49 million hectares, that's about 120 million acres dedicated to soybean production. Asian soybean rust has decimated these crops with losses of up to 80% and 90%. So virtually, every hectare in Brazil is treated to protect against this disease. On the left, you see untreated soybeans and significant damage related to that. In the middle is the best current competitor standard, and Haviza is over on the right. Have Visa delivered superior control compared to anything else on the market and provides a consistent and durable yield bump of more than 2%. We expect to launch this product in the next few years, and it has the peak revenue potential of over $500 million. This is important because it solves a problem and it strengthens our disease control franchise, building off of Inatreq and Adavelt. We're now going to move on to our next segment, and I'm going to introduce you to Varpelgo. Varpelgo our next-generation insecticide blockbuster. Building on the foundations of our natural product spinosyns franchise. This nature-inspired active is a broad-spectrum product, and it could only have been crafted from within our R&D engine. On the top left, you see untreated tomatoes with a lot of chewing pest damage from the tomato leaf liner to Absolute. Hopefully, you learned something today to absolute. It's a great test. In the middle is our best competitor product. Now that one is better than untreated certainly better than generics, but there still is quite a lot of damage. And that will reduce tomato quality and yield. On the right is Varpelgo. We're launching this in early 2030s, and it's a dual-use product for both foliar application and seed treatment. It's really broad spectrum, targeting over 70 crops in over 40 countries. And you can see some examples of that in the bottom. The breadth of this active on lots of different tests in cabbage in the U.S., rice in Vietnam and seed treatment in corn and wheat at over 700 million peak revenue, Varpelgo is going to have industry-leading performance against generics and competitor actives due to its novel motive action and it also has an excellent bean [indiscernible] safety profile. In our next segment, we're going to talk about weed control. This is a discovery active. We're going to launch sometime in the next decade, but it's another really good example of how we're using nature to solve problems created by nature with resistant weeds. On the left is Water hemp. It's in North America, and it's developed resistance to all generic modes of action. In the middle is a high rate of a competitor standard chemistry. You see that it knocks down some of those weeds, but many of those are still standing. And that's going to compete for the natural resources that whatever grower wants to grow in that field will have. So it's going to hinder the yield of whatever crop the grower wants. On the right is Corteva's nature-inspired solution. And you can see how clean that field is, controlling those resistant weeds very effectively. This came from our microbial discovery platform. It helped us identify something truly new to solve future challenges. New modes of action come from novel sources of inspiration. Our last segment is planned performance. And I'm going to tell you about a product that's launched, but it's ramping up, Nutricia N. This is a nature derived product. That's a microbe that helps plants use resources more efficiently. The top you see potatoes that are grown in Germany under a standard fertilizer program. In the middle, we added 25% extra fertilizer just for the experiment. And on the right is that standard fertilizer program with Nutricia, Nutricia gave us 3 tons more potatoes per hectare. It even beat that middle panel of 25% extra fertilizer by 2x, helping the growers get more from the resources they're already using. In the bottom are some examples of yield improvement across a wide range of other crops. Over 4 tons per hectare and onions, almost 3 bags per hectare improvement in soybeans, 2.5 tons per hectare yield in grapes and over 460 kilograms per hectare more in coffee, and I really appreciate that because I love coffee. This is the type of solution that's targeted towards our mega trends, helping growers get more out of less with an integrated field program. It's expected to be more than $300 million as it ramps up. So across disease, insect, weed control and plant performance. These 4 examples help illustrate how we translate differentiated science into grower value. And the common trend -- the common threat across this is very simple. When the challenge is new, the answer is not generics. It's differentiated innovation. And these are just 4 examples from our broader Corteva pipeline. Here's our Corteva pipeline. This is the most detailed version of the pipeline that we've shared in a long time. And you can see $11 billion of value across disease, insect, weed control and plant performance. We're poised to launch 12 actives from this pipeline over the next decade. I don't want you to take a step back and appreciate the breadth and depth of the pipeline. Vertically across discovery, development, launch, ramp up life cycle management and horizontally across our indication areas and also our crops or geographies, or technology types. Integrated in this pipeline are our nature derived, those are the leaf actives. Our nature inspired. Those are the hand holding the leaf actives, and they work together with conventional actives to solve grower problems. Looking over to the right, life cycle management is really important. It's how any crop protection R&D company operates. It's how we extend the life and value of launch factors by combining them together through additional crops, geographies, formulations and applications. The bottom line message here is we have a rich pipeline with many opportunities across multiple crops and time horizons to consistently deliver value for Corteva. Now this pipeline also includes external innovation, and we've talked about that. So let's double-click into a couple of those. We think about external innovation in 3 ways. The first is Corteva catalyst. Through catalysts, we target investments with critical starts and companies working in novel, potentially disruptive spaces. Biotelliga that Luke and I mentioned is a great example. If I was giving this presentation a few months ago, Biotelliga would have been part of catalyst. But since June, we acquired Biotelliga, bringing both the people and the technology into Corteva. The second is out-licensing. Some technologies may not fit within our internal efforts, but it could create value to other markets. So for example, we have 2 actives that didn't hit our investment hurdle rates and we monetize them to another company for them to develop. And then 2 other actives were actually better fits in the adjacent spaces of animal health. The first one is a collaborative R&D effort we've engaged with Merck Animal Health. And the second is a partnership with a global animal health company that resulted in a product we launched a few years ago. Now the third place of external innovation is in-licensing. Not every great idea originates from inside Corteva, bringing external actives or technologies in combining them with our development and formulation capabilities, we create broader value for everyone and provide growers with a lot of choice. Together, catalyst out licensing, in-licensing that give us flexibility, ways to maximize the value of our innovation wherever it originates. And the bottom line is we leverage this external innovation in our R&D engine to maximize the value for Corteva, which requires disciplined innovation management, and you see the result of that discipline in the efficiency of our R&D engine. Our R&D engine has led to an $11 billion pipeline. And if you look on the left, compared externally to shared competitor values, our pipeline is 1/3 larger than the competitor average. Now it's not the biggest. But what's critically important is our R&D spend is 1/3 lower than competitor average. That leads to R&D efficiency, that pipeline value over R&D spend, and we're over 2x better than average at 22x. So the bottom line message is this. This comes from thoughtful and disciplined choices. This does not come from the products of silos or bureaucracy. These are our fantastic R&D scientists from around the world working together an intentional collaboration. And that unified R&D organization is laser focused on one thing: creating differentiated solutions to solve significant problems for growers around the world and create value for them because when we create value for our farmer customers, we know we can share in that value. In closing, Corteva is positioned to lead the next generation of crop health innovation. We have a proven ability to translate innovation into value. Our R&D platforms give us a real edge to enable and accelerate this pipeline, and it fuels us to get to that next stage of growth for our company. The challenges that growers face , these are not temporary challenges. These are systemic and structural. The matter trends of pest pressure evolving. These are going to require new solutions that generic tools of the past simply cannot solve. These are really hard problems, but we're up to the challenge. That's why I'm so optimistic about our future. We've built the systems and the pipeline to deliver the products to solve these hard problems. And that's our sweet spot. That's why we're so excited to serve our grower customers and the next generation of technology from our Corteva R&D engine. Thank you very much.

Please welcome Chief Commercial Officer, Brook Cunningham.

Good afternoon, everyone. I'm Book Cunningham. It is a genuine pleasure to be with you all here today. You've just heard Reza talk about the science. Why our innovation engine is the best in the industry, incredibly difficult to build and even harder to replicate. My job as Chief Commercial Officer, is to talk about what happens next because great science only creates value when it solves a real problem for a customer, and that customer sees enough value to pay a premium [indiscernible] season after season. That's what our commercial organization does. We translate innovation into customer value into financial results. And here's what I want you all to take away today. Our commercial model is built to drive growth and margin expansion through the cycle in a way that is structurally advantaged over our peers, not by predicting them, but by building an engine that performs in all of them. good markets and difficult ones, changing weather, competitive pressure, shifting farmer economics, we can't control any of those things. What we can control is where we compete, how we compete, and how effectively we turn that innovation into value. And as the only stand-alone R&D crop protection company of global scale, we can see market movement sooner, make choices faster and reallocate resources more aggressively because Crop Protection is our entire business, not 1 unit inside a much larger company. Over the next 20 minutes, I'll show you why these factors differentiate Corteva today and how we're evolving it to extend that leadership in tomorrow. Today, I'm going to cover 5 key things. First of all, we operate in a structurally growing market that needs innovation. The world keeps asking agriculture to produce more food, feed and fuel, while producing it's getting harder. That creates sustained demand for differentiated technology, as we heard from Reza earlier. Second, as you heard Luke mention, our portfolio is deliberately balanced across crops and geographies, and it's increasingly differentiated. Together, those 2 things position us to grow above the market and expand margins through the cycle. Third, we're disciplined about where we compete and how we win. We segment intentionally. We concentrate resources on the crops, the customers and the markets where we can create the most value and we tailor our route to market country by country. And then we generate demand where it actually matters at the farm gate. Fourth, we're getting faster and more deliberate about how we manage innovation across that entire life cycle Reza talked about earlier, reaching peak revenue sooner, sustaining it longer and capturing more of each technology's lifetime value. And finally, the idea that connects everything. Commercial insight powers our innovation flywheel. Farming reshapes our R&D priorities, R&D creates differentiated technology, commercial turns that technology into cash, and then we reinvest that cash into the next wave of innovation. Let's start with the market because I want to be really clear about something. Demand for new crop protection innovation is structural and 4 forces are driving it. The first is population growth. As we saw in the video earlier, the world is on track to add another 2 billion people over the next 2-plus decades, and we have to feed all of them using roughly the same amount of arable land. Second, pest and disease pressure is increasing. Climate change is moving past into new regions. They're reproducing faster, they're evolving faster and resistance continues to build. As Reza explained, that creates sustained demand for new modes of action in conventional chemistry and biologicals. The third is regulation. The requirements and costs of bringing new chemistry to market continues to rise. And at the same time, demand is increasing for biologicals and naturally derived chemistry with greener profiles and lower use rates. And fourth, consumer preferences are constantly changing from higher protein diets to biofuels to food produce with more [ novel ] plant health solutions. Those forces don't create demand for just any product. They create demand for innovative solutions. And the ability to serve that demand exists across our entire portfolio, conventional chemistry, biologicals and Seed Applied Technology, all working together as a complementary system. Take a look at where the value is growing. Biologicals, 6% to 8%; Seed Applied Technology, 3% to 5%; and conventional crop protection continues to grow off of a very large base. Within that market, we've made an intentional choice around where we want to compete. That's novel chemistry, differentiated formulations and technologies that solve important problems for growers and therefore command premium view. The large off-patent molecules that generics chase, that's not our target market. We choose the geographies, the crops and the customer segments where our innovation gives us the right to win. This next chart gets to the heart of why we grow through the cycle. Let's start with the sales mix on the left. As Luke mentioned, no single crop geography or technology carries this company. We're globally diversified across both key crop and non-crop markets where we hold global leadership positions, including a landed pastureland, [indiscernible] geography in a no other as often accelerating. The balance alone doesn't create market leadership, differentiation and deep customer and crop segmentation do, and we make hard choices around where we compete. We play where we can win and when market dynamics shift, we move faster than our peers. When a market becomes generic dominated and we can't create differentiated value. We redeploy those resources to some where they can earn more. As proof from 2022 to 2024, we were the first amongst our peers to exit roughly $500 million of lower-margin genericized products. And at the same time, we kept investing in innovation. In 2020, differentiated products represented about 45% of our mix. Today, it's 65%, and we expect to sustain roughly that level through the back half of the decade. In 2025 alone, we registered more than 144 new crop protection products. Now look at the right-hand side of the chart. That's where you can see the strategy working. That's our price and volume growth against the average of our crop protection peers. And importantly, it spans the entire cycle we've slipped through, the scarcity and boom of '21 and '22, the destocking that followed and the stabilization since. Through that cycle, we performed better than the peer average. Not just when conditions were good, we outgrew through the destocking downturn as well. That's the difference between a business that rides the cycle and one that's built to outperform it. Differentiation creates durable growth and margin resilience. That creates the capacity to reinvest. That flywheel is starting to turn. Now once we've chosen a to compete, then comes how we win. In a market defined by change, scale matters, but so do people, culture, speed and the ability to make choices ahead of our competition. Corteva has all of them. First, and I might be biased here, but I believe we have the best people and culture in the agriculture industry. Our commercial teams are highly respected for their technical expertise, long-term customer relationships and a reputation for always doing what's right for farmers. Second, we bring that integrated solution, conventional chemistry, Seed Applied Technology and biologicals focused on solving farmers' biggest pain points to drive their ROI. That includes both our proprietary technology and those of third-party innovators who are increasingly seeking out partnerships with Corteva for our global reach, our regulatory capabilities, and the ability to work together to get new innovation into the hands of farmers faster. And we combine these technologies with agronomic expertise across the season. The result is a solution built to optimize the grower's ROI. That's what creates loyalty. Next, we tailor the route to market by country based on the reality of what works best, both for our customers and for our channel partners. And increasingly, we're using new tools like AI to strengthen our model and make us even more efficient. Things like removing the low-value sales and marketing activity that consumes our people's time so they can spend it more where they create value out in the field with customers. And putting AI-driven intelligence and digital tools into the hands of our field teams will enable sharper competitive intelligence, customer targeting, pricing and agronomic decisions at the acre. You combine that with our ability to move faster than our peers as a stand-alone CP company, and it will translate into better growth, stronger mix, more resilient margins and better returns on innovation. And all of that ultimately has to show up at one place at the farm gate. This is where our commercial model creates real value and where I believe it becomes particularly difficult to replicate. Our demand generation engine has 3 parts. First, integrated sales and agronomy teams focus on one outcome, grower ROI; second, we have a differentiated and integrated portfolio; and third, prescriptive full season crop health program supported by digital tools and financing. You put those together and you create demand that repeats because it's based on demonstrated economic value to a farmer, not a promotion or a price cut. Let me bring that to life with a few examples from our recent customer excellent pilots in Asia. In blueberries, high-touch grower engagement, pulled our integrated chemistry plus biologicals portfolio through in new ways. Sales grew 26% year-over-year, with biologicals up 41% in that customer group. In potatoes, sharper segmentation by farmer crop and geography drove 8% sales growth and a whole acre solutions selling, combining nutritionals, plant growth regulators and chemistry grew sales 13% and expanded our large grower professional base by 66%, 3 different crops, 3 different pilots, 1 commercial discipline. Understand the customer deeply, solve a significant problem, improve the ROI. And when you do that well, growers come back. On-farm demand generation in collaboration with our channel partners is a model that works for all parties and that we're working to scale across the globe. Of course, having great technology isn't enough. You have to extract its full value, and that requires accelerating our launch capabilities and managing innovation across its entire life cycle. Think about the value curve of any technology. At launch, we have patent protection. So the objective is simple: go broad, go hard, go fast, secure broad use labels across crops and geographies launch more differentiated formulations earlier and use licensing and co-marketing to maximize our reach. The goal is to reach peak revenue faster and sustain it longer. As the patent matures, we defend that premium through new formulations, mixtures and claims that extend the value of the active ingredient. And eventually, every molecule reaches commoditization. That's the moment that generics are waiting for. But we don't wait for them. We move ahead of the curve. By then, we've already been managing the asset toward that moment for years. This includes reducing our cost position per unit to be increasingly competitive via continuous productivity. Ralph is going to take us through that a bit later. We continue bringing differentiated mixtures to market. We had a license where it creates value, and we harvest the remaining economics. And when the returns no longer justify the resources, we exit cleanly. That is our answer to generic pressure. Extract more value earlier and for longer and then redeploy that capital to the next wave of innovation. Same asset deliberately managed at every stage. That's how you turn a successful product into compounding value rather than a spike followed by a decline. You can see that same engine here applied to our medium-term pipeline. Launches ramp, peak and overlap, each new wave builds on the last while post-patent formulations continue defending the value underneath. The result is roughly $800 million of incremental top line growth in 2029 versus 2026, a 16% average CAGR through 2029 and [ RLX ] and Rinskor score together exceeding $1 billion in annual sales by 2019. Not one launch wave after overlapping wave. Now let me take that commercial model around the world and show you how differently we apply it market by market. We'll start here at home in the U.S. A roughly $15 billion addressable market, where we generate about $2 billion -- $2.5 billion in revenue. Here, we serve 2 very different customer bases. Large broad acre farms producing storable commodities like corn, soybeans and cereals, primarily through a 3-step channel and land and pasture and high-value specialty operations, primarily through a 2-step channel. What's changing following the separation from [indiscernible] is really important. First, we have greater commercial freedom. We can build deep higher value channel relationships without the perceived conflict of Pioneer. We can simplify sales roles and increase the amount of time my people spend directly with customers. I expect our call frequency per customer to roughly double, now focused exclusively on Crop Protection. Pioneer remains exclusive with our next biologicals brand. But beyond that relationship, separation creates new opportunities to accelerate including a larger presence with channel partners responding to increasing grower demand for plant performance solutions. We also gained greater freedom to operate and Seed Applied Technology to work with new seed companies and other new partners while remaining Vylor's preferred supplier, and we'll continue to grow in our non-crop businesses as well. That includes land and pasture where we're a global leader in environmental solutions, so specialty business, which provides attractive growth outside of the ag cycle. The principle is the same. Deep customer relationships plus premium technology creates the opportunity for additional share. Now Brazil, a roughly $14 billion addressable market, about $8 billion in the north and $6 million in the South. Where we generate approximately $1.7 billion in revenue today. But North and South Brazil are fundamentally different markets. So we don't treat them the same, and we continue to proactively evolve our model in response to a rapidly changing competitive landscape. In the north, mega-scale broad acre growers produce soy, corn and cotton, often double cropping in a single season. There, we go direct. Our direct sales access program gives strategically segmented large and mega growers a tailored experience, focused on customers who value technology and are willing to pay for it. In 2025, our differentiated mega grower model achieved a 61% year-over-year increase in sales, while our personally model delivered a 40% increase in sales. Innovative credit and barter deepened our customer engagement and now support roughly 1/3 of our total Brazil revenue. In the South, the structure is completely different. Smaller farms, higher-value crops and perennial production. So there, we built a distribution network that effectively operates as an arm's length extension of Corteva. Emblemas are our preferred regional distributors. Escalas are our selected cooperative partners, both highly value differentiated technology. This partnership structure enabled us to achieve a 57% increase in sales with our Emblemas in 2025. Those are choices turned into actions and segmentation turned into growth. And beneath both models is a fit-for-purpose portfolio, new innovation like Haviza, expanded biologicals led by Nutricia and selected post-patent formulations that bridge us to the next generation of active ingredients. Same country, very different customers and very different routes to market. But one principle understand where value is created and you build the commercial model around it. The same principle applies across the rest of the world where one playbook would fail. We don't use one. In EMEA, regulation and market structure shape the opportunity. In Northern Europe, we're growing in cereals with new lower use rate technologies as incumbent products face regulatory pressure. In Central and Eastern Europe, dedicated on farm teams generate demand at the farm gate and lock in purchase commitments ahead of the season. In Asia Pacific, we've continued to evolve our routes to market ahead of peers. In China, we reduced our sales territory by 60% in 2026 and redeployed those resources against fewer higher-value crops where we saw a greater opportunity for penetration and value creation. We took steps out of the channel. We began co-marketing with dealer partners and noncore markets, and we in-licensed local Chinese technologies to close important portfolio gaps by crop. India required a completely different answer. There, we moved ahead of peers away from super distributors and built our own on-farm demand generation organization for greater control over our own growth. That paid off as our competitors struggled and some had to exit India entirely. Different countries, different channels, different customer structures, but one common commercial discipline, make deliberate choices around where to play and then build the model required to win there, which brings me back to where I started, the flywheel. If you remember one thing from my presentation, remember this loop. Our commercial teams work shoulder to shoulder with growers. They see the problems today's technology doesn't solve. Those insights help determine where R&D places its bets. And then R&D creates new active ingredients, formulations and mixtures. Commercial takes those technologies to market to maximize their value across the life cycle and the cash that generates funds the next wave, both our own R&D and third-party innovation we're bringing into our portfolio. That is how the returns compound. And it's why I don't think of the commercial organization is the last step in the innovation process. It really sits at the center of the flywheel with the grower. We help determine what customers need, we translate it into value and that value funds what comes next. That's the difference between selling products and building a solutions-driven growth engine. We choose where to compete, we win through integrated solutions. We manage the full life cycle of every asset, and we reinvest in the next wave. That's how we grow through cycles, not by predicting them, but by building a system that performs in all of them. Thank you.

We will now take a short break. Our program will resume in 15 minutes. [Break]

Please welcome Chief Integrated Operations Officer, Ralph Ford.

Good afternoon, and thank you for joining us. Innovation is the foundation of Corteva's growth. The innovation only creates value where it can be manufactured competitively, scaled reliably, protected from disruption and continuously optimized throughout its life cycle. That is the role of operating -- integrated operations. Our objective is to safely build the industry's most competitive, reliable and resilient system for bringing innovation to farmers around the world. Achieving that requires deliberate choices across our footprint, sourcing strategy, technology, operating model and ways of working while continuously balancing cost, resilience and life cycle value creation. Over time, those choices have strengthened productivity, improved resilience, and enhanced our ability to make better, faster decisions across the enterprise. As molecules evolve from launch to maturity, we adapt our operating strategy, optimize performance profitability and cash generation. This is why we view integrated operations not as a support function, but as a strategic capability and a durable competitive advantage. Built on a foundation of operational excellence, our platform protects innovation, supports growth, strengthens margins improves cash generation and only converts innovation into sustainable shareholder value. Today, I'll show how this platform has evolved, how it creates value across the life cycle of a molecule and why it positions Corteva for long-term competitive advantage. This slide summarizes the 4 ideas that define our integrated operations platform. First, integrated operations brings together all facets of operations into one agile platform, procurement, manufacturing, supply chain, logistics, technology and our external partners operate as an integrated system to maintain resilience. Second, we have transitioned from heritage setups to world-class systems and processes. We did not simply optimize the structures we inherited. We challenged them. We relooked at the network and the way work gets done and built a platform designed around the needs of the enterprise. Third, we drive strategic planning for every molecule throughout its life cycle. We continuously evaluate technology, sourcing, footprint, capacity, cost and supply choices to create value and build resilience. And fourth, flawless execution and productivity are embedded in our DNA. They are not stand-alone programs. They shape how we operate every day. Together, these 4 elements allow operational excellence to convert innovation into shareholder value. This journey has been intentional and has touched every part of our operating system. We began with suboptimized active ingredient and formulation and packaging footprint, including multiple uncompetitive sites. We exited high-cost facilities, and optimize the balance of our internal and external network. We also moved from independent functions that were not optimized to support business to unified functions operating toward common goals and objectives. This shift created clear enterprise ports and faster, more coordinated decisions, removing duplication of work. Our sourcing model evolved from molecule-based sourcing and complex supplier relationship management to a more robust and balanced program, designed to maximize value and sustain a competitive cost position, leveraging our total buy across the enterprise. At the same time, we moved from segment-specific molecule improvement initiatives to value-driven prioritization based on business impact. We replaced siloed work processes with value-based processes, optimized across the platform. The result is lower cost, greater resilience and a competitive advantage that last. This is more than a set projects and initiatives. It's a fundamentally different way of operating that creates the same results and value. Let's talk about what this looks like today. Our platform combines a structural foundation with a proven execution model. The structural foundation is our network and operational excellence. We use an [indiscernible] internal external network aligned with strategic priorities, and we execute efficiently while advancing technology to drive down cost. Network optimization and operational excellence gives us the flexibility and capability that creates options. The execution model is built on optimized systems and processes. It partners with our structural foundation to protect margin and supply through disruption tariffs and generic competition. It also creates a leaner model that generates recurring cost savings and list margin over time. These elements reinforce one another. The network enables supply resilience, the operating system powers the productivity engine. Resiliency and productivity are not competing objectives, managed together they drive stronger margin and cash flow performance. The platform gets stronger over time, not because market conditions improve, but because we continuously improve the way we operate. The platform is anchored by 2 complementary networks. Our active ingredient network is optimized the Safeguard intellectual property, create resiliency and ensure cost competitiveness across Corteva manufacturing sites and strategic partners. It protects the technology and process knowledge that differentiate our innovation, while giving us the flexibility to choose the right internal or external route. This applies us globally with the right flexibility and cost position. Our formulation and packaging network is designed to be close to end markets and customers. That proximity creates efficient, reliable supply chains, which allows us to respond quickly to changing farmer demand in the regions and reduce our logistics cost and complexity. Across both networks, the priorities are consistent, protect IP and cost competitiveness through strategic partnerships, build resilience through diversified supply unlock value through strategic sourcing excellence, capture competitive input cost and drive productivity through value-based operational excellence. Two networks, one integrated platform and supply that stays low cost and resilient while moving quickly when demand shifts. Now let's turn to the results, these changes to our platform have been delivering. At our 2024 Investor Day, we committed to approximately $300 million of run rate EBITDA improvement through cost actions by 2027. We are on track to deliver that commitment. More importantly, the platform continues to identify additional opportunities. We now see another $200 million of recurring savings by 2029, bringing the total run rate opportunity for 2024 through 2029 to approximately $500 million. These results are enabled by strategic sourcing, footprint optimization life cycle cost reduction, operational excellence and disciplined value-based decision-making. The additional $200 million requires no new capital and reflects permanent productivity gains embedded in our sourcing, technology, operations and operating model, creating lasting shareholder value. Looking forward, we will continue deploying value-driven supply strategies across the life cycle and benchmarking our operating model and ways of working. The strongest proof point is that the capability itself is becoming more productive over time. One of the biggest advantages of our platform is the ability to manage the economics of every molecule throughout its full life cycle. We have a consistent playbook that has proven to work for both new and mature molecules. We drive value in 3 connected areas. Technology continuously improves molecule inflation and packaging processes. The supply network places components in the right locations, protect intellectual property and cost competitiveness. Strategic sourcing leverages scale across active ingredients, raw materials, formulations and packaging. The way we drive value changes with the needs of the molecule. At launch, we established a cost advantage and designed the optimal state. As the molecule scales, we improve yields, reduce cycle times and waste and continuously improve the process. We align the footprint with strategic priorities, run operations at peak efficiency, unlock value through category management and build strategic supplier partnerships. This is not a onetime intervention. It is a repeatable operating discipline designed to sustain a structurally advantaged cost position. Our cultural foundation is operational excellence. And that culture helps us maximize the value of every molecule. Now let's see how the play work works to drive results with a real life example based upon one of our new molecules. We begin to launch with a clear view of the desired cost position. As volume ramps, technology, operational excellence and strategic sourcing work together, to drive the unit cost down while revenue grows towards peak. In this real life example, unit cost reduces by more than 80%. The primary reduction comes from technology and operational excellence, including [indiscernible] advancements that protect intellectual property, higher yields, shorter cycle times and fewer all-spec batches. The remaining savings comes from strategic sourcing, including more multi-sourcing of intermediates and raw materials. As a molecule grows, [ Greggory ] management leverages scale to drive value. The business impact goes beyond margin. Lower cost allows us to serve a broader customer base within existing markets and can support additional applications. That increases the revenue opportunity and list peak value. That is why productivity is not separate for [indiscernible]. By improving the economics from launch through peak, the productivity engine helps unlock growth and extends the value created by innovation. The same philosophy applies to a post-patent molecule, but the value creation focus areas change. After patent exploration, the productivity engine helps keep the product profitable as revenue changes and generic competition increases. In this real-life example, unit cost declines by more than 40% since play book was applied. The primary reduction comes from strategic sourcing. We increased multisourcing, resource to qualified suppliers and extend beyond the molecule itself to the formulation level. The remaining savings come from network optimization. We consolidate volume into the lowest cost, highest capability sites and optimize the balance between internal and external production. These actions are enabled by capabilities built over many years, supplier relationships, sourcing knowledge, network flexibility and a clear understanding where your value is created. That experience allows us to continue improving the economics of a molecule even after patents expire. It is how mature products remain attractive businesses and continue creating value for shareholders. Let me close by bringing the pieces together. What does the integrated operations platform do? It protects innovation and intellectual property after commercialization, it creates resiliency through footprint and strategic sourcing, and it drives cost down throughout every phase of the product life cycle. Why is that valuable? Because the process is repeatable and continuous. It builds revenue and margin potential, even in down markets. It broadens customer reach through cost efficiency and helps ensure local supply for farmers. The new molecules that Reza talked about will be able to be placed in the same playbook to optimize the value from the innovation. And why is it unique? We use a proactive model to reach a structurally advantaged cost position. Our so focus on crop protection gives us the freedom to optimize for one business and our speed of decision-making is designed to meet the pace required to compete in this market. This advantage did not happen because markets improved or because of one initiative. It was built through deliberate choices about footprint, sourcing, technology, productivity, where to invest and where not to invest. Integrated operations protects and extends innovation throughout the life cycle. It is an operating capability that has been built, strengthened through intentional actions, proven their results, in position to create value for Corteva, our partners and farmers for years to come. That is a powerful combination and is one of the reasons I am confident in the future of Corteva. Thank you. Now I'll turn it over to Jeff.

Please welcome Chief Financial Officer, Jeff Rudolph.

Okay. Let's bring this home. Well, good afternoon, everyone. It's an honor to be with you, and it's really great to see some familiar faces. So over the course of today's presentation, you've heard why Corteva is well positioned for the future. You've heard about the strength of our portfolio. The depth of innovation pipeline and the opportunities we see ahead. My goal is straightforward, to explain how those strengths translate into earnings growth, cash generation and long-term shareholder value. The investment case for Corteva is not only that we become more focused business following the separation. Focus absolutely matters. It sharpens accountability, speed's decisions and allows us to direct resources towards the areas that we believe generate the highest returns. But focus by itself is not our end goal. Our ultimate goal is superior long-term value creation. So when I step back and look at Corteva's stand-alone company, I believe we have a unique combination of differentiators. We are the industry's only scaled pure-play crop protection company with an innovation engine capable of driving growth. an operating model that creates self-help margin expansion and a disciplined approach to capital allocation. The financial framework I'll walk through today is really the economic output of those strengths. At the center of our financial framework is a clear model. Innovation drives growth, commercial and operational excellence, convert that growth into earnings, margin improvement and cash flow and disciplined capital allocation compound those returns over time. In simple financial terms, our responsibility is not to simply generate more revenue. It is to ensure that more of each incremental dollar of revenue drops to the bottom line and converts to cash. So let me touch on a few key messages that I want you to take away from this section. First, we began with a strong track record. We have a demonstrated model built on innovation, portfolio choices and operating discipline that can deliver advantaged financial performance even in a challenging market environment. Second, our differentiated portfolio and pipeline provide diversity and balance and support profitable growth. We are not relying on a single product, region or even market recovery to deliver our framework. Third, operating discipline is what turns innovation into margin expansion and cash flow. Mix improvement, productivity and a fit-for-purpose cost structure are embedded in how we plan to run the company. And fourth, an investment-grade balance sheet and disciplined capital allocation gives us the flexibility to invest for growth while also returning capital to shareholders. Those 4 elements connect the strategy you've heard today from Luke and the team to the financial outcomes we expect through 2029 and ultimately underpin our ability to deliver value creation. Now before discussing where we're going, it's important to understand what we have already accomplished. Since 2020, net sales have grown by more than $1 billion to just shy of $8 billion in total revenue for 2026 on a historical reported segment basis. Operating EBITDA has increased from roughly $1 billion to approximately $1.4 billion, and EBITDA margin has improved by approximately 250 basis points. And these results did not come from an easy operating environment. We navigated inflation, supply chain disruption, regulatory changes and competitive pressure across the industry. Yet, we continue to grow earnings and improve the quality of the portfolio, which we believe is a real differentiator versus industry peers and provides credibility to the model, we believe can work in varying market conditions. Several choices got us here, and all of them were deliberate. New product sales have increased by around $1 billion since 2020 as a result of the continued penetration of products like [indiscernible], Rinskor and Zorvec. Prior acquisitions have established us as a market leader in biologicals, which have annual sales of more than $500 million for 2026. And at the same time, we made deliberate choices to exit approximately $0.5 billion of low-margin products where differentiation and returns were limited. Those exits reduced reported sales over this time period, but more importantly, they improved portfolio quality, margins and economic return. We also maintained a disciplined focus on cost and productivity with approximately $200 million of expected savings in 2026 versus 2024 levels, about $100 million per year has been our rhythm, and we aren't done, as you just heard from Ralph. The important point is not simply that we grew. It is how we grew. Innovation improved portfolio quality, portfolio actions, concentrated resources on more attractive opportunities. Productivity improved cost competitiveness. Together, those choices drove stronger margins and a more durable earnings base. And when we compare our performance with the broader industry, the same pattern is evident, which you'll see on this next slide here. We captured reported revenue growth largely in line with peer average, and this was accomplished despite the strategic portfolio exits. And at the same time, we expanded the exposure we said to biologicals and more differentiated technologies. But we supported margin improvement through disciplined cost actions and productivity. We'll continue to invest in the future with meaningful increases in annual R&D investment since 2020. That combination produced substantial margin outperformance relative to peers over the period shown, approximately 600 basis points to be specific. Again, largely due to our intentional and proactive approach to taking the necessary actions to enhance our portfolio with more differentiated solutions and ultimately drive profitability. Continuous improvement actions define who we are at Corteva. These are not onetime programs. They are embedded in our culture and how we plan to execute on our commitments. Markets will continue to fluctuate. Crop prices will move up and down. Weather, channel conditions and regulatory environments will change. Our objective is to build a business where an increasing share of value creation comes from the factors within our control: scaling innovation, portfolio quality, commercial and operational execution and capital discipline. That is why the track record matters. It gives us evidence and confidence that our model works through the cycle and not only when market conditions are favorable. Another important strength of Corteva is the balance and diversification of our portfolio. As a stand-alone pure-play crop protection company with nearly $8 billion in revenue, we have meaningful positions across herbicides, insecticides, fungicides, biologicals and innovative solutions, including seed treatment. We are balanced across geographies, and we serve a broad range of crops and production systems. That balance reduces our exposure to any single crop, region, indication, regulatory outcome or product life cycle while also providing necessary scale. As an example, approximately 60% of our current revenue comes from crops outside of corn and soybeans. This provides multiple avenues for growth and supports a more durable earnings profile. We're not underwriting the future of Corteva to one molecule or one market outcome. We are building from a base of a broad portfolio with multiple sources of value creation potential. Touching now on the high-level summary of our assumptions regarding the market outlook. Now you've heard from Luke and Brook, but to reiterate, we assume that the crop protection industry returns to a more historical growth norm with expected future growth at the low single-digit rate annually for the all-in crop protection market. Within that, biologicals and Seed Applied Technologies are expected to grow faster than conventional crop protection, which clearly benefits Corteva, given the advantage and growing positions we have in those parts of our portfolio. We assume on-farm demand remains steady. Pricing largely stabilizes over the planning period. and currency remains constant versus our preliminary 2027 outlook rates. In other words, the framework does not require a cyclical recovery or an improved market. It largely reflects the continuation of the current backdrop where we have proven we can execute and drive earnings and margin growth. Now as a leadership team in a considerable time pressure testing these assumptions, we examine the factors that matter most to achieving the framework. And what became clear is that the biggest drivers of revenue and profit growth remain largely what is within our control, innovation, portfolio quality, productivity and execution. Those are the areas where we believe we can create the greatest value. Let's now turn to the financial framework through 2029 on a stand-alone basis. So before diving in, let me just do some quick math for you. Let me summarize how we go from a segment level result in 2026 to stand-alone for Corteva which you likely saw in an earlier slide of mind. For revenue, stand-alone adds approximately $100 million in annual top line as a result of seed treatment sales to Vylor that are now treated as third-party sales given we will remain a preferred supplier. On EBITDA, segment level EBITDA is reduced by approximately $100 million due to our share of the Heritage Corporate segment within historical Corteva reporting. In addition, there are modest dissynergies impacting Corteva's prospective results. And so with that, let's dive into the '29 framework. We expect net sales to increase from approximately $7.8 billion in 2026 to a range of approximately $8.4 billion to $8.7 billion by 2029. At the midpoint, that represents a compound annual growth rate of approximately 3%. We expect stand-alone operating EBITDA to increase from approximately [ $1.3 billion ] in 2026, to a range of $1.45 billion to $1.65 billion by 2029. At the midpoint, that represents a compound annual growth rate of 6%, with EBITDA margin surpassing 18% on a stand-alone basis by 2029. Now what should stand out is that EBITDA is expected to grow roughly twice as fast as revenue. That is a result of our differentiated portfolio supported by new product growth, complemented by productivity and disciplined cost management. In other words, we're not just growing. We're improving the quality of growth. Importantly, these outcomes are the result of choices, choices about where to invest, where to compete, how to allocate capital and where we believe we can create the highest returns. New products and biological support revenue growth and improved mix. Cost of goods sold productivity expands gross profit. SG&A discipline provides operating leverage and ability to reinvest in R&D. Together, those drivers allow a mid-single-digit EBITDA growth rate to emerge from a lower top line growth rate. So let's unpack the revenue growth assumptions a bit more on the next slide. The largest positive contributor is new products, with approximately $800 million in top line improvement during the planning period. Recent launches will continue to expand globally, while additional technologies enter the market through 2029. Notably, we expect to launch Haviza in 2028, which will result in new product growth to be more weighted toward the latter part of our planning period. Biologicals provide the second major growth lever. We expect double-digit volume growth across regions for this part of our portfolio, led by continued expansion in Brazil with product Nutricia, a novel biological solution powered by a patented bacterium to drive yield across many crops. As these 2 platforms become a larger share of our total company sales, they improved both the growth profile and margin profile of the company. The base business column reflects the normal realities of crop protection and how we manage our portfolio. For instance, the impact reflects cannibalization from new product launches and normal life cycle fade. This is not new. It is planned for. And while we are expecting pricing to large stabilize across the globe, we realistic and expecting some lingering price pressure in pockets of the market. framework, we're assuming price is down about 1% per year through 2029. We are not minimizing those headwinds. We have incorporated them into the framework. Our confidence comes from the fact that growth from new products and biologicals is expected to more than offset those pressures and produce positive overall growth. That is what a healthy innovation-driven portfolio should do. It should replenish the base, improve the mix and create a longer runway for profitable growth. Turning now to EBITDA. Similar to revenue, new products and biologicals are a significant driver, with approximately $450 million of combined incremental profit expected through 2029. Biologicals growth will support EBITDA improvement given they are not only growing faster, but they also carry attractive incremental economics. As they become a larger share of their portfolio, they have a disproportionate positive impact on EBITDA growth. We also expect more than $200 million of net cost of goods sold improvement from productivity initiatives across manufacturing, sourcing and supply chain, which also takes into consideration the net impact of remaining headwinds from inflation and tariffs, which will mostly impact 2027. Those positive contributors are partially offset by the base business pressure that I previously explained, including new product cannibalization and lingering price headwinds. SG&A and R&D expense is expected to increase over the planning period as a result of intentional investments in commercial enablement and R&D. Despite the increases in SG&A, we do expect SG&A as a percentage of sales to improve over the plan period as we continue to drive a fit-for-purpose cost infrastructure. Now specific to R&D, we estimate annual spend to be in the range of 6% to 7% of sales to support pipeline advancement and launch activities. That reinvestment in the business is important. We intend to fund the capabilities required to sustain innovation and commercialize the pipeline while still expanding margins. The EBITDA bridge there reflects a model we have already demonstrated can be successful. Growth platforms improved mix, productivity, lower structural costs and a portion of those benefits, it's reinvested to support the next wave of growth and enable our commercial and R&D teams to continue to deliver. Strong EBITDA growth and operating discipline matters because it ultimately supports cash generation. And we believe Corteva is well positioned to do just that. By 2029, we expect to generate approximately $2.2 billion to $2.6 billion of cumulative cash flow from operations. That cash generation gives us meaningful financial flexibility. Our first priority is to reinvest in the business and sustain the assets and capabilities required to compete. We expect approximately 25% of the cash shown to support sustaining capital expenditures. This amounts to approximately 2% to 3% of revenue per year invested in CapEx, which is likely lower than the typical industry average as a result of the proactive and intentional actions we have taken as part of our integrated operations strategy. that Ralph just covered. On our dividend, it doesn't define us, but it is an attractive element of our valuation, and we are committed to growing it over time. The remaining cash flows after CapEx and dividend is significant, approximately $1.2 billion to $1.4 billion on a cumulative basis through 2029, which provides significant headroom for targeted M&A and share repurchases. Our approach to M&A will be disciplined. We will focus on strategic fit and clear returns that are accretive to our hurdle rates, including opportunities that strengthen innovation, add differentiated capabilities or accelerating access to attractive markets where differentiation is ultimately rewarded. Equally important are the opportunities we choose not to pursue. The objective is not doing M&A for the sake of M&A. The objective is creating value and returns that exceed our hurdle rates. We will allocate capital to the opportunities that offer the highest returns, whether that's investing in the business, pursuing strategic M&A where we're purchasing our own shares. And when excess capital exists beyond those needs, we remain committed to returning it to shareholders. Now all of this is underpinned by a very strong balance sheet that we firmly believe is a strategic asset and a competitive advantage of the company. And we remain committed to an investment-grade rating. Initial low leverage gives us flexibility to act with swiftness on growth opportunities. And the derisking of the heritage pension liability, further strengthens the financial foundation of the company. We will still be a seasonal business so is commercial paper remains important to fund working capital levels throughout the year. Okay. So let's wrap up on this last slide. If there's one thing we want you to take away from today's discussion. It's that Corteva enters this next chapter from a position of strength. And what gives us confidence is not simply our position of strength today. but the momentum we see in customer-centric innovation, portfolio quality, earnings growth and cash generation. As we look ahead, we believe there are 3 reasons to be confident in this opportunity. First, we have a differentiated innovation engine that is creating meaningful runway for growth backed by an industry-leading pipeline, R&D capabilities and commercial value capture. The portfolio is becoming more differentiated more technology driven and increasingly weighted towards the areas of the market where we can help solve some of the toughest challenges farmers face. Second, we have a disciplined operating model. Our expectation for margin expansion and cash generation is not based on optimism. It is based on the same operating principles that have driven our leading performance over the last several years. And third, we have significant financial flexibility. A strong balance sheet and robust cash generation give us the ability to invest for growth, pursue accretive opportunities and return capital to shareholders. all while maintaining a position of financial strength. We believe the strategy is clear. The financial framework is credible. And the priorities are well understood by the organization. Now it's our job to execute. Thank you for your time. We appreciate your interest in Corteva, and we look forward to Q&A. And I think with that, Rafa, I'm handing it back to you for Q&A instructions.

Please welcome back Luke Kissam, Reza Rasoulpour, Brooke Cunningham and Ralph Ford.

Thank you. We will now begin our Q&A session. We'll be taking questions for the next 30 minutes. [Operator Instructions] With that, let's begin. Chris?

Chris Parkinson, Wolfe Research. Just a curiosity, the negative 1% pricing embedded in the 3-year outlook. Is that a functionality of just what's been going on in the market the last couple of years and perhaps underpinning and conservatism. Does that embed the fact that you do have rising transportation logistics costs, energy costs, you name it in terms of some of the people that have been causing those pricing pressures? I would just love -- you've been back at this now for a couple of months. So I'd just love to hear your actual thought process underpinning those assumptions.

A couple of months. I'm going to export, right? I'll take a I'll let Brook add some color. I think we built that in if you really look over the last 3 years, you've seen much more significant price increase. And so I wouldn't say we're calling the bottom, but we're calling moderating of the price reduction that we see. If you look at some molecules around -- it's been in pockets. Pricing has been in pockets as opposed to what we're seeing today. And we expect those pockets to continue a little bit, but things that we think we can control. Brook?

No. Well said. I mean we track where the pricing indexes are for some of those key competitors. We've seen the declines moderating over the course of the last several quarters. we're just being realistic about the fact we've still got pretty intense competition in a number of our key markets. We've seen pricing pressure in North America. As Luke mentioned earlier, on one particular molecule, Brazil remains an intensely competitive market. So I think we're just trying to be realistic about what we're facing, but really stay focused on that life cycle management to make sure we're continuing to replenish with new innovation that's coming in that drives a 10% to 15% margin benefit for us above the average of our portfolio and circling out or cycling out those lower-margin products.

Kevin, please?

It's Kevin McCarthy with Vertical Research Partners. Maybe for Reza, can you comment on what percentage of your R&D budget is dedicated to molecules with new modes of action? And more broadly, I'd just be interested to hear anyone's thoughts here about percentage of the current portfolio that's on patents and off patent and how that's expected to evolve over time.

Yes. So from a pipeline standpoint, everything that we look at, if it's not a brand new mode of action, it's an underutilized mode of action or may be underutilized for our particular segments. So 100% of it is either a new mode of action, a underutilized mode of action or something that we think is attractive for our particular portfolio. We did some math actually just last week to think of how many new modes of action do we have within our pipeline because there's a lot in that early stage that is confidential, and we have 28 new modes of action within our pipeline.

Do you want to comment on the percent that is patented or not patented that revenue?

Yes. So 65% of our portfolio is patented or differentiated, and the remaining is off patent.

Dave?

Dave Begleiter, Deutsche Bank. Luke, one of your primary U.S. competitors has had some challenges in the last few years, the stock doing 90% the last 3 years. I'm sorry, one of your primary [indiscernible] challenging. So what the primary differentiating factors between you and that competitor that will differentiate your performance versus theirs going forward?

So I think it's a lot of things we talked about today. Number one, our pipeline has been better and is better, number one. Number two, from a commercial standpoint, Brooks Group has flexed that muscle on going to the -- you saw how she talked about going to the various segments and how she sold differently around the world, they know how to do that. That's not a new muscle for us. We know how to do that. So they've done a good job there. And then I think more importantly, are just as important is the productivity improvement, where we've really been focusing on that productivity improvement. And I want to be clear about that. That wasn't productivity to get to a number. That was productivity to get better. And so that journey never ends. I mean in 2029, we're going to come back, and we're going to be looking at more productivity improvement. That's what we have to do to compete in this business. So I think -- look, it's the pipeline. And it's also the portfolio as a balanced portfolio, we weren't -- we're not a one trade pony. And so we've got a balanced portfolio. We've got the muscle -- commercial muscle that we flex on a real basis, a great pipeline that we've proven in the past that we have going forward and the productivity improvements that I think is embedded in this company's DNA.

And Luke, if I could just add if I think the balance sheet is the other one, right? I mean, you just heard our comments, I mean, it's -- it's a real strategic asset of the company. We're benefiting from the Heritage-Corteva organization and the position of strength that we're coming into. So that gives us a lot of capacity to go out and act decisively when we need to from a growth at standpoint.

Edlain Rodriguez, Mizuho. So if you become a pure-play Crop Protection company no longer attached to a seed company, can you talk about what you think you lose as well as what you think you can on being a stand-alone company?

Yes. What I think we gain is we gain a focus. We gain a focus on crop protection. So we're not -- that capital dollar is not competitive for the seed. We're able to grow our crop protection productivity improvements. Brook has turned loose per team into the market to sell only crop protection without worrying about how that may or may not impact seed or seed portfolio. So I think that focus in capital allocation in people development and how we go to the market is a very positive change for us. I was talking to somebody earlier, somebody asked me a question we lose that bundle that you can sell with seeding crops, and we've been training the market since 1995 that the bundle is a good thing. So we're the first really the lead to make that change. I believe the thesis is correct that will enable us to do it, but the proof is going to be in the pudding. So we've got to be able to execute this strategy. We've got to drive our cost down. We've got to bring those products out to the market, and we got to focus 100% on the crop protection needs of those growers. And if we do that, we're going to be successful. And I think we're going to prove that thesis to be correct.

I can add just a couple of things to that to you. talking an example from a gross perspective, our Seed Applied Technology portfolio. That's a huge market. really good margins for us. And we have an opportunity to materially grow in that space beyond just selling to Vylor now, which will continue to be a preferred partner for us, but we have much more opportunity in to operate in that space. That perceived conflict with Pioneer when it comes to channel partners was also very real. There's a Coke Pepsi situation that can exist with a lot of these channel partners. So that gives us a lot more freedom to operate to go out and broaden and deepen our relationships with the channel as well as some of our competitors are making other decisions to go different directions. So we really do think that there is benefit to that fit and focus that he's thinking about.

Kristen Owen from Oppenheimer. I did want to follow up on that Seed Applied Technology business because the growth rates there, I expect it to be maybe a little bit conservative from what you've presented today. meaning higher than what you presented today. So if you could follow up on that. And then, Brook, my actual question is also for you. Just given the complexity of the commercial organization. Maybe help us understand how you keep cost of that under control? Because I look at that and I think, gee, that's a lot of people, that's a lot of differentiated strategy. Where do we see the synergy in the commercial market?

Yes. No, it's a good question. It's something we have to look at continually where we have to look at our cost. It's a process that we're going through again right now where you have to look market by market to understand whether you still have the right operating model. There are some places like in Brazil where, for example, in North 30% or 35% of our business direct to grower. That makes sense there. There are other markets where it wouldn't make sense at all for us to go direct because it would be way too you think about a market like India or China, for example, where you have millions and millions farmers would be impossible to do. So we have to calibrate every couple of years on whether or not we've got that correct model in each market. And there are benchmarks that we can look at from a cost to serve perspective that we do look at. But it's a constantly evolving process.

And I think one of the opportunities going forward is going to be that we take what we've done in the integrated operations and apply that across our sales and marketing organization and think about the different tools that we have to use. That may not reduce the cost as much as it will increase the effectiveness of what we're spending, if that makes sense. So I'm really anxious about the opportunities we have there and really, really, really equipping work and her team with those type of tools because I think you'll see some significant improvements.

Josh Spector with UBS. I wanted to ask about the overall guidance. And I mean this was asked earlier in Vylor as well. I mean if you add together the Vilar and new Corteva targets, you have $4.1 billion. The guidance for Corteva hole is $4.2 billion a big message with earnings was that there's no dissynergies anymore. It's like $25 million. What's the disconnect? Are you guys changing anything with your outlook for crop chems within Corteva for this year? Or is this all rounding? How would you explain it?

Yes, Josh, great question. and trust that we looked at this 10 different ways when we were pulling the materials together for the 2 companies. So there's no change in guide for the company. The $4.2 billion is still the guide. I think what you're seeing, Josh, is just the mechanism presentation, there's some rounding in there. If we're 1 3 [indiscernible] and Vylor, if they're somewhere around their number it's all in the rounding. So I don't think anything that we're walking back from the combined guidance of the company and we still see a there relatively neutral dis-synergies on a combined basis. Now Corteva going forward, we have residual modest dissynergies that we think are quite modest and manageable, and we're going to work to reduce those over time. Now that's not incorporated in our framework, but we think there's an opportunity to do that. Once we get going and evaluate the future cost structure in some of those areas where we have duplication. But unequivocally, there's no change in that $4.2 billion. It's just, I think, how things have come together from presentation purposes.

Frank Mitsch, Fermium Research. A follow-up and then an actual question. which is a great way to actually get 2 questions in, but that's fine. So the comment was made that the Crop Protection salesperson was cognizant walking into an account that they might not sell a product because it would conflict on the seed side and so forth. I'm curious as how pervasive was it?