Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q4 FY2011 Earnings Presentation
24 slides from Archer-daniels-midland's earnings presentation, Aug 2, 2011
Slide 1: Fourth Quarter FY2011 Earnings Conference Call
Fourth Quarter FY2011 Earnings Conference Call August 2, 2011 Patricia Woertz John Rice Juan Luciano Ray Young Dwight Grimestad Chairman & CEO Vice Chairman, EVP & COO SVP & CFO VP, Investor Relations Office of the Chairman 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 – Q4FY11 5 Adjusted Earnings Per Share 6 Segment Operating Profit Summary 7 Segment Operating Profit 8 - 11 Corporate Highlights 12 Balance Sheet Highlights 13 Cash Flow Summary 14 Historical ROIC and WACC Trend 1
Slide 4: Chairman's Perspective
Chairman’s Perspective Despite a challenging environment in several • Safety key markets, ADM delivered solid operating results across all our businesses for the quarter. We earned record operating profit for the fiscal year with our growing global asset • Financial results base, diversified product
Slide 5: Financial Highlights
Financial Highlights (Amounts in millions, except per share data and percentages) Quarter Ended Year Ended June 30 June 30 2011 2010 Change 2011 2010 Change Segment operating profit (1) $ 888 $ 799 11% $ 4,021 $ 3,239 24% Net earnings attributable to ADM $ 381 $ 446 (15%) $ 2,036 $ 1,930 5% Earnings
Slide 6: Adjusted Earnings Per Share
Adjusted Earnings Per Share (1) Quarter Ended Year Ended June 30 June 30 2011 2010 2011 2010 Reported Earnings Per Share (fully diluted) $ 0.58 $ 0.69 $ 3.13 $ 3.00 Adjustments: LIFO (credit)/charge (0.05) 0.02 0.35 (0.04) Start-up costs 0.02 0.04 0.09 0.11 (Gain) on Golden Peanut revaluation - - (0
Slide 7: Segment Operating Profit Summary
Segment Operating Profit (1) Summary (Amounts in millions) Quarter Ended Year Ended June 30 June 30 2011 2010 Change 2011 2010 Change Oilseeds Processing Crushing & Origination $ 232 $ 218 $ 1,013 $ 818 Refining, Packaging, Biodiesel & Other 86 79 329 291 Asia 61 62 182 291 379 359 $ 20 1,524 1,400
Slide 8: Segment Operating Profit – Oilseeds Processing
Segment Operating Profit – Oilseeds Processing (Amounts in millions) Quarter Fiscal Year $38 $(109) $195 $1,524 $1,400 $14 $7 $(1) $379 $359 Q4-FY10 Crushing & Refining Asia Q4-FY11 FY10 Crushing & Refining Asia FY11 Operating Origination Packaging Operating Operating Origination Packaging Operating
Slide 9: Segment Operating Profit – Corn Processing
Segment Operating Profit – Corn Processing (Amounts in millions) Quarter Fiscal Year $549 $1,062 $722 $(209) $140 $(110) $88 $118 Q4-FY10 Sweeteners & Bioproducts Q4-FY11 FY10 Sweeteners & Bioproducts FY11 Operating Profit Starches Operating Profit Operating Profit Starches Operating Profit Sweetene
Slide 10: Segment Operating Profit – Ag Services
Segment Operating Profit – Ag Services (Amounts in millions) Quarter Fiscal Year $235 $19 $922 $668 $15 $193 $178 $0 Q4-FY10 Merchandising Transportation Q4-FY11 FY10 Merchandising Transportation FY11 Operating Profit & Handling Operating Profit Operating Profit & Handling Operating Profit Merchandi
Slide 11: Segment Operating Profit – Other
Segment Operating Profit – Other (Amounts in millions) Quarter Fiscal Year $71 $(7) $513 $449 $12 $198 $64 $122 Q4-FY10 Processing Financial Q4-FY11 FY10 Processing Financial FY11 Operating Profit Operating Profit Operating Profit Operating Profit Processing Financial Fourth Quarter FY2011 11
Slide 12: Corporate Highlights
Corporate Highlights (Amounts in millions) Quarter Ended Year Ended June 30 June 30 2011 2010 Change 2011 2010 Change LIFO credit (charge) $ 52 $ (23) $ 75 $ (368) $ 42 $ (410) Interest expense - net (82) (74) (8) (335) (283) (52) Debt buyback costs (8) - (8) (8) (75) 67 Gains (losses) on interest r
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in millions) June 30 June 30 2011 2010 (1) Cash $ 1,354 $ 1,440 Net property, plant and equipment 9,500 8,712 Operating working capital (2) 14,985 8,839 - Total inventories 11,651 7,625 Total debt 10,319 7,548 - CP outstanding 620 - Shareholders' equity 18,838 14,63
Slide 14: Cash Flow Summary
Cash Flow Summary (Amounts in millions) Year Ended June 30 2011 2010 Cash from operations before working capital changes $ 2,892 $ 2,678 Changes in working capital (5,232) 6 Purchases of property, plant and equipment (1,247) (1,607) Net assets of businesses acquired (218) (62) Marketable securities
Slide 15: Historical ROIC and WACC Trend
Historical ROIC and WACC Trend Q411 18% Trailing 4Q LIFO Adjusted ROIC Earnings (1) $2.6B Trailing 4Q LIFO Adjusted Average Invested Capital (1) $28.3B 16% Trailing 4Q Average ROIC (1) 9.0% Trailing 4Q Average WACC 6.5% 14% Trailing 4Q Average LIFO-Adjusted ROE (1) 13.3% 12% 10% 8% 6% 4% 2% 0% Q107
Slide 16: Market Conditions as of August 2
Market Conditions as of August 2 • U.S. corn and soybean supplies are tight. • Overall global crop supplies remain adequate following a good world wheat harvest and a record soybean harvest in South America. • ADM is monitoring crop progress and harvests in Europe, North America and China. • Global
Slide 17: Focus Areas for FY12
Focus Areas for FY12 • Driving operational excellence • Accelerating growth • Sustaining risk management success Fourth Quarter FY2011 17
Slide 18: Q&A
Q&A Fourth Quarter FY2011 18
Slide 19: Appendix
Appendix Fourth Quarter FY2011 19
Slide 20: Statement of Earnings Summary
Statement of Earnings Summary (Amounts in millions, except per share data and percentages) Quarter Ended Year Ended June 30 June 30 2011 2010 Change 2011 2010 Change Net sales and other operating income $ 22,870 $ 15,703 $ 7,167 $ 80,676 $ 61,682 $ 18,994 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Slide 21: Return on Invested Capital
Return on Invested Capital (Amounts in millions) LIFO Adjusted ROIC Earnings (4) Four Quarters Quarter Ended Ended Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Jun 30, 2011 Jun 30, 2011 Net earnings attributable to ADM $ 345 $ 732 $ 578 $ 381 $ 2,036 Adjustments Interest expense 117 115 121 129 482 Financ
Slide 22: Processed Volumes
Processed Volumes Metric Tons Processed (000s) Fiscal Year 2006 2007 2008 2009 2010 2011 Oilseeds Processing 28,004 28,439 29,532 28,248 29,095 29,630 Corn Processing 17,918 18,043 17,666 17,833 19,618 23,412 Wheat and Cocoa 7,690 7,248 7,369 7,165 7,291 7,179 53,612 53,730 54,567 53,246 56,004 60,2
Slide 23: Notes: Non-GAAP Reconciliation
Notes: Non-GAAP Reconciliation 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
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