Corteva, Inc. Common Stock

Supply chain and procurement · Raw material availability and cost volatility

Corteva's input costs are variable based on the costs associated with production or with raw materials Corteva uses. Corteva's manufacturing processes consume significant amounts of raw materials, the costs of which are subject to worldwide supply and demand as well as other factors beyond Corteva's control. Significant variations in input costs affect Corteva's operating results from period to period.

Supply chain and procurement · Supplier operation and dependance

Currently, a material portion of the company's crop protection inputs are sourced directly or indirectly from China. While the company utilizes dual- or multi- source supply chains to minimize business disruptions, these strategies may not be adequate to address the scope of disruptions created by such a conflict.

Supply chain and procurement · Raw material availability and cost volatility

Corteva's input costs are variable based on the costs associated with production or with raw materials Corteva uses. Corteva's manufacturing processes consume significant amounts of raw materials, the costs of which are subject to worldwide supply and demand as well as other factors beyond Corteva's control. Significant variations in input costs affect Corteva's operating results from period to period.

Strategic execution · Merger acquisition and divestiture risks

Failure to effectively manage acquisitions, divestitures, strategic investments, restructurings, cost savings initiatives and other portfolio actions may not have the results anticipated. If Corteva is unable to successfully integrate and develop acquired businesses, including its growth in biologicals, Corteva could fail to achieve expected increases in revenues and operating results, as well as anticipated investment returns, synergies and cost savings, which could have a material adverse effect on Corteva's financial results.

Market position and competition · Pricing pressure and margin compression

Additionally, data analytic tools and web-based new direct purchase models offer increased transparency and comparability, which creates price pressures. Corteva cannot predict the pricing or promotional actions of its competitors. Aggressive marketing or pricing by Corteva's competitors could adversely affect Corteva's business, results of operations and financial condition.

Innovation and product development · Intellectual property protection and infringement

Corteva has designed and implemented internal controls to restrict use of, access to and distribution of its intellectual property. Despite these precautions, Corteva's intellectual property is vulnerable to infringement, misappropriation and other unauthorized access, including through employee or licensee error or actions, theft and cybersecurity incidents, and other security breaches.

Innovation and product development · Product development and randd investment risks

New product concepts may be abandoned for many reasons, including greater anticipated development costs, technical difficulties, lack of efficacy, regulatory obstacles or inability to market under regulatory frameworks, competition, inability to prove the original concept, lack of demand and the need to divert focus, from time to time, to other initiatives with perceived opportunities for better returns.

Market position and competition · Disruptive competitors and new market entrants

Many of Corteva's competitors are also making considerable investments in similar new biotechnology products, improved germplasm products, biological and chemical products and agronomic recommendation products.

Market position and competition · Patent expiration and generic competition

Upon the loss or expiration of patent protection for one of Corteva's products or of a product that Corteva licenses, or upon the 'at-risk' launch (despite pending patent infringement litigation against the generic product) by a generic manufacturer of a generic version of one of Corteva's patented products or of a product that Corteva licenses, Corteva can lose a major portion of revenues for that product, which can have a material adverse effect on Corteva's business.

Market position and competition · Industry consolidation and market concentration

Corteva participates in an industry that is highly competitive and has undergone consolidation, which could increase competitive pressures.

Strategic execution · Strategic transformation and turnaround risks

Executing the Proposed Separation will require significant time and attention from Corteva's senior management and employees, which could disrupt Corteva's ongoing business, negatively impact Corteva's relationships with employees, suppliers, customers, distributors, licensors and other stakeholders and adversely affect Corteva's financial results and results of operations.

Legal and litigation · Contractual disputes and claims

In the ordinary course of business, Corteva may make certain commitments, including representations, warranties and indemnities relating to current and past operations, including those related to divested businesses and issue guarantees of third-party obligations. If Corteva were required to make payments as a result, they could exceed the amounts accrued, thereby adversely affecting Corteva's financial condition and results of operations.

Industry regulation · Licensing and permits

The regulatory approvals process is lengthy, costly, complex and in some markets unpredictable, with requirements that can vary by product, technology, industry and country. The failure to receive necessary permits or approvals, or the invalidation thereof, could have near- and long-term effects on Corteva's ability to produce and sell some current and future products.

Legal and litigation · Litigation and legal proceedings

Corteva faces risks arising from various unasserted and asserted litigation matters arising out of the normal course of its current and former business operations, including intellectual property, commercial, product liability, environmental and antitrust lawsuits. Corteva has noted a trend in public and private suits being filed on behalf of states, counties, cities and utilities alleging harm to the general public and the environment, including waterways and watersheds.

Capital structure and performance · Financial performance volatility

Significant variations in input costs affect Corteva's operating results from period to period. When possible, Corteva purchases raw materials through negotiated long-term contracts to minimize the impact of price fluctuations.

Capital structure and performance · Credit rating and cost of capital

Corteva's earnings, operations and business, among other things, will impact its credit ratings, costs and availability of financing. There can be no assurance that Corteva or EIDP will maintain its current or prospective credit ratings. A decrease in the ratings assigned to Corteva or EIDP by the ratings agencies may negatively impact Corteva's liquidity, access to the debt capital markets and increase Corteva's cost of borrowing and the financing of its seasonal working capital.

Credit and liquidity · Liquidity and cash flow constraints

Due to the seasonality of Corteva's business and the credit programs Corteva may offer its customers, net working capital investment and corresponding debt levels will fluctuate over the course of the year. Corteva regularly extends credit to its customers to enable them to purchase seed or crop protection products at the beginning of the growing season.

Natural and catastrophic events · Natural disasters and extreme weather

The agriculture industry is subject to seasonal and weather factors, which can vary unpredictably from period to period. Weather factors can affect the presence of disease and pests on a regional basis and, accordingly, can positively or adversely affect the demand for crop protection products. The weather also can affect supply chains and the quality, volume and cost of seed produced for sale as well as demand and product mix.

Geopolitical and trade · Regulatory and policy uncertainty

The regulatory environment may be impacted by the activities of non-governmental organizations and special interest groups and stakeholder reaction to actual or perceived impacts of new and existing technology, products or processes on safety, health and the environment. Corteva has seen an increase in recent years in the number of lawsuits filed by those who identify themselves as public or environmental interest groups seeking to invalidate pesticide product registrations.

Social and demographic · Public perception and reputation

Concerns and claims regarding the safe use of seeds with biotechnology traits and crop protection products in general, and their potential impact on health and the environment reflect a growing trend in societal demands for increasing levels of product safety and environmental protection. These and other concerns could manifest themselves in delays or failures in obtaining or retaining regulatory approvals, delayed product launches, lack of market acceptance, product discontinuation, litigation, continued pressure for and adoption of more stringent regulatory intervention.