Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q1 FY2010 Earnings Presentation
24 slides from Archer-daniels-midland's earnings presentation, Nov 3, 2009
Slide 1: First Quarter FY2010 Earnings Conference Call
First Quarter FY2010 Earnings Conference Call November 3, 2009 Patricia Woertz John Rice Steve Mills Dwight Grimestad Chairman & CEO EVP, Commercial & Production EVP & CFO VP, Investor Relations 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some of our comments constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financial results. The statements are based on many assumptions and factors, including
Slide 3: Table of Contents
Table of Contents Page Chairman’s Perspective 4 Financial Highlights – Q1FY10 5 Segment Operating Profit Summary 6 Segment Operating Profit 7 – 10 Corporate Highlights 11 Statement of Earnings Summary 12 Balance Sheet Highlights 13 Cash Flow Summary 14 Financial Returns 15 Q&A 16
Slide 4: Chairman's Perspective
Chairman’s Perspective • Safety “The ADM team executed well, delivering strong sequential earnings growth. Earnings were significantly better than the second half of fiscal • Financial results 2009. As we advance our growth strategy, we are using our financial strength to build shareholder value. Lo
Slide 5: Financial Highlights – Q1FY10
Financial Highlights – Q1FY10 (Amounts in millions, except per share data and percentages) Quarter Ended September 30 2009 2008 Change Segment operating profit(1) $ 774 $ 1,176 (34%) Net earnings attributable to ADM (2) $ 496 $ 1,045 (53%) Earnings per share(2) $ 0.77 $ 1.62 (52%) Effective tax rate
Slide 6: Segment Operating Profit Summary
Segment Operating Profit Summary (Amounts in millions) Quarter Ended September 30 2009 2008 Change Oilseeds Processing Crushing & Origination $ 135 $ 339 Refining, Packaging, Biodiesel & Other 70 106 Asia 79 65 284 510 (44%) (1) Corn Processing Sweeteners & Starches 194 65 Bioproducts (6) 53 188 118
Slide 7: Segment Operating Profit – Oilseeds Processing
Segment Operating Profit – Oilseeds Processing (Amounts in millions) $510 $(204) $(36) $14 $284 Q1-FY09 Crushing & Refining Packaging Asia Q1-FY10 Operating profit Origination Biodiesel & Other Operating profit Crushing & Origination Refining, Packaging, Biodiesel & Other Asia First Quarter FY2010 7
Slide 8: Segment Operating Profit – Corn Processing
Segment Operating Profit – Corn Processing (Amounts in millions) $129 $(59) $188 $118 Q1-FY09 Sweeteners & Bioproducts Q1-FY10 Operating Profit Starches Operating Profit Sweeteners & Starches Bioproducts First Quarter FY2010 8
Slide 9: Segment Operating Profit – Ag Services
Segment Operating Profit – Ag Services (Amounts in millions) $428 $(228) $(25) $175 Q1-FY09 Merchandising Transportation Q1-FY10 Operating Profit & Handling Operating Profit Merchandising & Handling Transportation First Quarter FY2010 9
Slide 10: Segment Operating Profit – Other
Segment Operating Profit – Other (Amounts in millions) $4 $3 $127 $120 Q1-FY09 Wheat, Cocoa & Malt Financial Q1-FY10 Operating Profit Operating Profit Wheat, Cocoa & Malt Financial First Quarter FY2010 10
Slide 11: Corporate Highlights
Corporate Highlights (Amounts in millions) Quarter Ended September 30 2009 2008(1) Change LIFO credit $ 76 $ 453 $ (377) Investment expense (54) (38) (16) Corporate costs & other (79) (105) 26 Total Corporate $ (57) $ 310 $ (367) (1) Restated following adoption of ASC Topic 470-20 and ASC Topic 810
Slide 12: Statement of Earnings Summary
Statement of Earnings Summary (Amounts in millions, except per share data and percentages) Quarter Ended September 30 2009 2008(1) Change Net sales and other $ 14,921 $ 21,160 (29%) operating income ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Gross p
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in millions) September 30 June 30 2009 2009(3) Cash(1) $ 2,798 $ 1,555 Net property, plant and equipment 8,366 7,950 Operating working capital(2) 8,114 9,372 - Total inventories 7,139 7,782 Total debt 7,877 7,996 - CP outstanding - - Shareholders' equity 14,243 13,6
Slide 14: Cash Flow Summary
Cash Flow Summary (Amounts in millions) Three Months Ended September 30 2009 2008(1) Cash from operations before working capital changes $ 730 $ 766 Changes in working capital 1,262 3,914 Purchases of property, plant and equipment (497) (483) Business acquisitions - (24) Business disposals - 236 Mar
Slide 15: Financial Returns
Financial Returns (Annualized quarterly RONA and ROE) Sept 30 2009 RONA (trailing 4 quarters, 7.4% excluding LIFO) $20 18% Return on equity 8.1% (trailing 4 quarters) 16% $16 14% Net Asset Base ($B) 12% $12 10% 8% $8 6% $4 4% 2% $0 0% Q209 (2) Q309(2) Q409 (2) Q110 Fixed Investment (1) Working Capit
Slide 16: Q&A
Q&A 16
Slide 17: Upcoming Events
Upcoming Events • ADM Annual Meeting of Stockholders November 5, 2009 • Morgan Stanley Global Consumer and November 19, 2009 Retail Conference - NY • Citi Investment Research Food Holiday - December 3, 2009 1st Annual Food Manufacturing Conference • ADM celebrates the 85th listing anniversary Decemb
Slide 18: Appendix
Appendix 18
Slide 19: LIFO Adjusted RONA Assets – FY2010
LIFO Adjusted RONA Assets – FY2010 (Amounts in millions) Quarter Ended Four Quarter (1) (1) (1) Dec 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Average Investment in affiliates $ 2,640 $ 2,369 $ 2,459 $ 2,559 $ 2,507 Goodwill 501 493 532 531 514 Net PP&E 7,412 7,583 7,949 8,366 7,827 Fixed Inves
Slide 20: LIFO Adjusted RONA Earnings – FY2010
LIFO Adjusted RONA Earnings – FY2010 (Amounts in millions) Four Quarters Quarter Ended Ended (1) (1) (1) Dec 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Sep 30, 2009 Net earnings attributable to ADM $ 578 $ 2 $ 58 $ 496 $ 1,134 Adjustments Investment Income (48) (43) (36) (30) (157) Interest Exp
Slide 21: Summary of Specified Items
Summary of Specified Items (Amounts in millions) Oilseeds Corn Ag Impact Impact Processing Processing Services Other Corporate Before Tax After Tax Quarter ended September 30, 2009 LIFO credit $ - $ - $ - $ - $ 76 $ 76 $ 47 Quarter ended September 30, 2008 LIFO credit $ - $ - $ - $ - $ 453 $ 453 $ 2
Slide 22: Processed Volumes
Processed Volumes Metric Tons Processed (000s) Fiscal Year 2004 2005 2006 2007 2008 2009 Oilseeds Processing 26,397 27,079 28,004 28,439 29,532 28,248 Corn Processing 17,217 17,321 17,918 18,043 17,666 17,833 (1) Wheat, Cocoa and Malt 7,948 7,660 7,690 7,248 7,369 7,165 51,562 52,060 53,612 53,730 5
Slide 23: Non-GAAP Reconciliation Notes
Non-GAAP Reconciliation Notes 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 should be considered in addition to, not in l
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