Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q2 2021 Earnings Presentation
29 slides from Archer-daniels-midland's earnings presentation, Jul 27, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
1 Proprietary business information of ADM. Second Quarter 2021 Earnings Conference Call July 27, 2021
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Proprietary business information of ADM. Some of our comments and materials in this presentation constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financia
Slide 3: Record Q2 Results
3 Record Q2 Results Proprietary business information of ADM. Adjusted Earnings Per Share1,2 Adjusted Segment Operating Profit1,3 $1.50 $1.33 $1,500 $1,160 $1.00 $0.85 $1,000 in millions $804 $0.50 $500 $0.00 $0 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Trailing 4-Quarters Adjusted ROIC1 Trailing 4-Quarters Ad
Slide 4: Productivity: Harnessing Best-In-Breed Technology to Transform Processes
4 Productivity: Harnessing Best-In-Breed Technology to Transform Processes Proprietary business information of ADM.
Slide 5: Innovation: Powering Growth With a Go-To-Market Revolution
5 Innovation: Powering Growth With a Go-To-Market Revolution Proprietary business information of ADM.
Slide 6: Decatur Carbon Capture: Three Million Metric Tons of CO2 and Counting
6 Decatur Carbon Capture: Three Million Metric Tons of CO2 and Counting Proprietary business information of ADM.
Slide 7: Spiritwood: Investing in the Future of Responsible Transportation
7 Spiritwood: Investing in the Future of Responsible Transportation Proprietary business information of ADM.
Slide 8: Sojaprotein: Enhancing Our Leading Capabilities in Plant Protein
8 Sojaprotein: Enhancing Our Leading Capabilities in Plant Protein Proprietary business information of ADM.
Slide 9: Ag Services & Oilseeds
9 Ag Services & Oilseeds Outstanding Results, Great Execution More Than Proprietary business information of ADM. Chicken Scratch ADM exported 133 million Segment Operating Profit bushels of corn from North America in Q2 — $600 $570 enough to produce 2.9 billion pounds $500 of chicken $413 $400 in mi
Slide 10: Carbohydrate Solutions
10 Carbohydrate Solutions Excellent Results in Dynamic Environment Road Tripping Proprietary business information of ADM. According to transportation research group TRIP, U.S. vehicle- Segment Operating Profit miles traveled are nearly at pre-pandemic levels … $500 and in 15 states, they're higher $
Slide 11: Nutrition
11 Nutrition 15% Revenue Growth, Record Profits 27% Proprietary business information of ADM. The number of dietary supplement users who increased their usage over the past five years, Revenue Segment Operating Profit with 40% citing increased concerns for $2,000 $250 their health as the reason why $
Slide 12: Other Business Results and Corporate
12 Other Business Results and Corporate Venturing for Proprietary business information of ADM. Growth ADM Ventures is enhancing our Other Business Corporate participation in growth opportunities with its expanding $40 $38 $400 $(320) portfolio $(261) $300 $30 in millions $200 in millions $20 $100 $0
Slide 13: Great Execution, New Products, Participation in Large and Growing Market Opportunities
13 Great Execution, New Products, Participation in Large and Growing Market Opportunities ... Proprietary business information of ADM. … Providing Expectation for Continued H2 Momentum, Very Strong Full-Year Results, Sustained Growth in Years to Come.
Slide 14: Upcoming Investor Events
14 Upcoming Investor Events Proprietary business information of ADM. Seaport Annual Summer Investor Conference August 24 Barclays Consumer Staples Conference September 9 JP Morgan All Stars Conference September 21
Slide 15: Additional Facts and Explanations
Additional Facts and Explanations
Slide 16: Industry Environment
16 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q1 Call Spot Gross US$/MT US$/MT 2020/2021 Crop Year 2021/2022 Crop Year Crush Margins1 5-Year Prior 5-Year Prior Current Average Year Current Average Year Soybeans US $45-$50 $40-$45 Corn US 96% 94% 93% 22% 19%
Slide 17: ADM Additional Information
17 ADM Additional Information Proprietary business information of ADM. Processed Volumes by Quarter (000s of metric tons) Adjusted EBITDA(1)(2) by Segment (in millions) CY 20 CY 21 Trailing 4-Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q2 21 Q2 20 Q2 21 Q2 20 Oilseeds 9,163 9,103 8,970 9,329 8,960 8,778 (1)(2) Adjus
Slide 18: Financial Appendix
18 Financial Appendix
Slide 19: Q2 2021 Financial Highlights
19 Q2 2021 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended June 30 2021 2020 Change Adjusted earnings per share (1) (2) $1.33 $0.85 $0.48 Total segment operating profit (unadjusted) (3) $1,145 $813 $332 Adjusted segment
Slide 20: Q2 Adjusted Segment OP $1.2 Billion
20 Q2 Adjusted Segment OP $1.2 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 $804 $849 $1,152 $1,199 $1,160* Ag Services and Oilseeds Carbohydrate Solutions Nutrition Other Busin
Slide 21: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 21 Quarter Ended June 30 (Amounts in millions) 2021 2020 Change (1) Total Segment Operating Profit $ 1,145 $ 813 $ 332 Proprietary business information of ADM. Specified items: Gains on sales of assets (22) (23) 1 Impairment and restructuring charges 37
Slide 22: Balance Sheet Highlights
22 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) June 30, 2021 June 30, 2020 Cash (1) $869 $1,203 Net property, plant, and equipment 9,873 9,833 Operating working capital (2) 11,628 8,540 - Total inventories 11,446 7,991 Total debt 9,721 9,173 - CP outstandi
Slide 23: Cash Flow Highlights
23 Cash Flow Highlights Proprietary business information of ADM. Six Months Ended June 30 (Amounts in millions) 2021 2020 Cash from operations before working capital changes $2,202 $1,611 Changes in working capital (1) 805 409 Purchases of property, plant, and equipment (427) (360) Net assets of bus
Slide 24: GAAP Statement of Earnings Summary
24 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended June 30 2021 2020 Change Revenues $22,926 $16,281 $6,645 Gross profit 1,463 1,108 355 Selling, general and administrative expenses 739 638 101 Asset impairment, ex
Slide 25: Adjusted Earnings Per Share (EPS)
25 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended June 30 2021 2020 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 825 $ 712 $ 1.26 $ 552 $ 469 $ 0.84 Adjustm
Slide 26: ROIC versus WACC
26 ROIC versus WACC Q2 CY21 LT ROIC Objective: 10% Proprietary business information of ADM. (1)(2) Trailing 4Q Average Adjusted ROIC 9.7 % Annual WACC 5.25 % Trailing 4Q Average Adjusted EVA $1,348M Long-Term WACC 7.0 % 11% Trailing 4Q Average ROIC (1)(3) 8.4 % 10% 9% 8% 7% 6% 5% 4% Q2 Q2 Q2 Q2 Q2 C
Slide 27: Return on Invested Capital
27 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Sep. 30, 2020 Dec. 31, 2020 Mar. 31, 2021 June 30, 2021 June 30, 2021 Net earnings attributable to ADM $ 225 $ 687 $ 689 $ 712 $ 2,313 Adjustment
Slide 28: Adjusted EBITDA Four Quarters Ended June 30, 2021
28 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended June 30, 2021 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Sep. 30, 2020 Dec. 31, 2020 Mar. 31, 2021 June 30, 2021 J
Slide 29: Notes: Non-GAAP Reconciliation
29 Notes: Non-GAAP Reconciliation Proprietary business information of ADM. The Company uses certain “Non-GAAP” financial measures as defined by the Securities and Exchange Commission. These are measures of performance not defined by accounting principles generally accepted in the United States, and
Archer-Daniels-Midland Company — Q2 2021 Earnings Presentation on 6ix