Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q4 2022 Earnings Presentation
28 slides from Archer-daniels-midland's earnings presentation, Jan 26, 2023
Slide 1: Proprietary business information of ADM.
1 Proprietary business information of ADM.
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: 2022 Financial Highlights
3 2022 Financial Highlights Proprietary business information of ADM. (1) (3) Non-GAAP measures - see notes on page 28 See segment operating profit as reported on page 20 (2) See earnings per share, the most directly comparable GAAP measure, on page 24
Slide 4: Proprietary business information of ADM.
4 Proprietary business information of ADM.
Slide 5: Key Strategic Accomplishments in 2022
5 Proprietary business information of ADM. Key Strategic Accomplishments in 2022
Slide 6: Driving Enduring Value Creation in 2023 and Beyond
6 Driving Enduring Value Creation in 2023 and Beyond Proprietary business information of ADM.
Slide 7: Ag Services & Oilseeds
7 Ag Services & Oilseeds Substantially Higher Results Proprietary business information of ADM. 1 million regenerative Segment Operating Profit agriculture acres, multiple partnerships in 2022 $1,250 $1,184 $5,000 $4,386 $1,000 $4,000 $810 $750 $3,000 $2,775 in millions in millions $500 $2,000 $250 $
Slide 8: Carbohydrate Solutions
8 Carbohydrate Solutions Continued to Expand Margins in S&S Proprietary business information of ADM. 26% YOY Segment Operating Profit revenue growth in BioSolutions in 2022 $500 $1,500 $428 $1,360 $1,283 $400 $1,250 $300 $261 $1,000 in millions in millions $200 $750 $100 $500 $— $250 $(100) $— Q4 20
Slide 9: Nutrition
9 Nutrition Q4 Sales Growth of 11%, Full-Year 18% On Largest Human Proprietary business information of ADM. Constant Currency Basis1 Nutrition pipeline in segment's history, Revenue supported by growing $3,000 $10,000 global network of $7,910 $6,712 customer innovation in millions $1,910 in millions
Slide 10: Other Business Results and Corporate
10 Other Business Results and Corporate Proprietary business information of ADM. Other Business $100 $89 $200 $167 in millions in millions $100 $50 $15 $25 $— $— FY 2021 FY 2022 Q4 2021 Q4 2022 Corporate $600 $1,500 $(1,325) $(1,316) $(377) $(398) $400 $1,000 in millions in millions Specified Items
Slide 11: Bolstered Financial Flexibility to Support Strategic Growth
11 Bolstered Financial Flexibility to Support Strategic Growth Proprietary business information of ADM. $6.0 $5.3 2022 Capital Expenditures $3.9 $1.3 billion $4.0 Cash from Operations Before Billions 2022 Dividends Working Capital $2.0 $0.9 billion $0.0 FY 2021 FY 2022 2022 Share Repurchases $1.5 bi
Slide 12: Proprietary business information of ADM.
12 Proprietary business information of ADM.
Slide 13: Additional Facts and Information
Additional Facts and Information
Slide 14: Industry Environment
14 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q3 Call Spot Gross US$/MT US$/MT 2022/2023 Crop Year Crush Margins1 5-Year Prior Current Year Soybeans Average US $90-$100 $90-$100 Corn Europe $65-$75 $40-$70 US 68% 69% 68% Brazil 8% 11% 18% Brazil $50-$65 $20
Slide 15: ADM Additional Information
15 ADM Additional Information Proprietary business information of ADM. Processed Volumes by Quarter (000s of metric tons) Adjusted EBITDA(1)(2) by Segment (in millions) Trailing 4-Quarters CY 21 CY 22 Q4 22 Q4 21 Q4 22 Q4 21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1)(2) Adjusted EBITDA $ 1,684 $ 1,407 $ 6,830 $ 4,
Slide 16: ADM Additional Information: Nutrition
16 ADM Additional Information Proprietary business information of ADM. Nutrition Revenues (amounts in millions) Nutrition Operating Profit (amounts in millions) Growth vs. Growth vs. Growth vs. Growth vs. Q4 22 Q4 21 YTD FY22 YTD FY21 Q4 22 Q4 21 YTD FY22 YTD FY21 GAAP Revenues GAAP Operating Profit
Slide 17: Financial Appendix
17 Financial Appendix
Slide 18: Q4 2022 Financial Highlights
18 Q4 2022 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended December 31 2022 2021 Change Adjusted earnings per share (1) (2) $1.93 $1.50 $0.43 Total segment operating profit (unadjusted) (3) $1,611 1,388 $223 Adjusted seg
Slide 19: Q4 Adjusted Segment OP $1.7 Billion
19 Q4 Adjusted Segment OP $1.7 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 $1,413 $1,556 $1,849 $1,579 $1,665* 2,000 1,750 1,500 1,250 1,000 750 500 250 — Ag Services and Oilse
Slide 20: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 20 Quarter Ended Dec. 31 Year Ended Dec. 31 (Amounts in millions) 2022 2021 Change 2022 2021 Change Proprietary business information of ADM. (1) Total Segment Operating Profit $ 1,611 $ 1,388 $ 223 $ 6,549 $ 4,638 $ 1,911 Specified items: Gain on sale o
Slide 21: Balance Sheet Highlights
21 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Dec. 31, 2022 Dec. 31, 2021 Cash (1) $1,037 $943 Net property, plant, and equipment 9,933 9,890 Operating working capital (2) 11,627 10,546 - Total inventories 14,771 14,481 Total debt 9,180 9,539 - CP outstan
Slide 22: Cash Flow Highlights
22 Cash Flow Highlights Proprietary business information of ADM. Years Ended Dec. 31 (Amounts in millions) 2022 2021 Cash from operations before working capital changes $5,267 $3,941 Changes in working capital (1,789) 2,654 Purchases of property, plant, and equipment (1,319) (1,169) Net assets of bu
Slide 23: GAAP Statement of Earnings Summary
23 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended Dec. 31 2022 2021 Change Revenues $26,231 $23,090 $3,141 Gross profit 1,762 1,650 112 Selling, general and administrative expenses 897 786 111 Asset impairment, ex
Slide 24: Adjusted Earnings Per Share (EPS)
24 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended Dec. 31 2022 2021 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,213 $ 1,019 $ 1.84 $ 1,011 $ 782 $ 1.38 A
Slide 25: ROIC versus WACC
25 ROIC versus WACC Trailing 4Q Average Adjusted ROIC(1)(2) Q4 CY22 13.6 % LT ROIC Objective: 10% Proprietary business information of ADM. Annual WACC 5.50 % Trailing 4Q Average Adjusted EVA $2,819M Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 13.4 % 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% Q4 Q4
Slide 26: Return on Invested Capital
26 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Four Quarters Quarter Ended Ended Mar. 31, 2022 June 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Dec. 31, 2022 Net earnings attributable to ADM $ 1,054 $ 1,236 $ 1,031 $ 1,019 $ 4,340 Adju
Slide 27: Adjusted EBITDA
27 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended December 31, 2022 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Mar. 31, 2022 June 30, 2022 Sep. 30, 2022 Dec. 31, 2022
Slide 28: Notes: Non-GAAP Reconciliation
28 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 — Q4 2022 Earnings Presentation on 6ix