Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q4 2021 Earnings Presentation
28 slides from Archer-daniels-midland's earnings presentation, Jan 25, 2022
Slide 1: Fourth Quarter 2021 Earnings Conference Call
1 Proprietary business information of ADM. Fourth Quarter 2021 Earnings Conference Call January 25, 2022
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: Finishing 2021 Strong
3 Finishing 2021 Strong Proprietary business information of ADM. Adjusted Earnings Per Share1,2 Adjusted Segment Operating Profit1,3 $2.00 $1,500 $1,413 $1.50 $1,152 $1.21 $1,000 in millions $1.00 $500 $0.00 $0 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Trailing 4-Quarters Adjusted ROIC1 Trailing 4-Quarters Ad
Slide 4: Proprietary business information of ADM.
4 Proprietary business information of ADM.
Slide 5: Proprietary business information of ADM.
5 Proprietary business information of ADM.
Slide 6: Ag Services & Oilseeds
6 Ag Services & Oilseeds Largely in Line with Previous Record Q4 Proprietary business information of ADM. Full Year 2021 OP Up 32% Segment Operating Profit Outstanding execution $1,000 delivered YOY growth across the portfolio $834 $810 $800 $600 in millions $400 $200 $0 Q4 2020 Q4 2021 Ag Services
Slide 7: Carbohydrate Solutions
7 Carbohydrate Solutions Extremely Strong Quarter with Favorable Ethanol ~80% 2021 Proprietary business information of ADM. Environment OP Growth Continued business evolution with Peoria sale, Segment Operating Profit SAF MOU and ~$100M in new annualized revenue $500 wins in BioSolutions $428 $400 $
Slide 8: Nutrition
8 Nutrition Q4 Profits up 26%; Revenue Up 19% GAAP, 21% Proprietary business information of ADM. Constant Currency 20% Profit Growth in 2021 Industry-leading sales Revenue Segment Operating Profit growth; strategic investments in core $2,000 $200 growth platforms $1,743 $160 $1,500 $1,441 $150 $127
Slide 9: Other Business Results and Corporate
9 Other Business Results and Corporate Proprietary business information of ADM. Other Business Corporate $30 $500 $(383) $(377) $400 $20 $15 $300 in millions $10 $200 in millions $0 $100 $(10) $0 $(20) -$100 $(17) Q4 2020 Q4 2021 $(30) Interest Q4 2020 Q4 2021 Unallocated Corporate Other Specified I
Slide 10: Starting 2022 with a Better ADM
10 Proprietary business information of ADM. Starting 2022 with a Better ADM
Slide 11: Our 2022 Assumptions
11 Proprietary business information of ADM. Our 2022 Assumptions
Slide 12: Proprietary business information of ADM.
12 Proprietary business information of ADM.
Slide 13: Upcoming Investor Events
13 Upcoming Investor Events Proprietary business information of ADM. Baird 2022 Sustainability Conference February 22-23 BofA Securities 2022 Global Agriculture and Materials Conference March 2-3 BNP Paribas Exane 10th Consumer Ingredients Conference March 16-17
Slide 14: Additional Facts and Explanations
Additional Facts and Explanations
Slide 15: Industry Environment
15 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q3 Call Spot Gross US$/MT US$/MT 2021/2022 Crop Year Crush Margins1 5-Year Prior Soybeans Current Average Year US $55-$65 $50-$60 Corn Europe $60-$80 $60-$70 US 70% 64% 72% Brazil 19% 29% 27% Exp: $30-$40 Exp: $
Slide 16: ADM Additional Information
16 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 Q3 Q4 Q4 21 Q4 20 Q4 21 Q4 20 Oilseeds 9,163 9,103 8,970 9,329 8,960 8,778 8,509
Slide 17: Financial Appendix
17 Financial Appendix
Slide 18: Q4 2021 Financial Highlights
18 Q4 2021 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended Dec. 31 2021 2020 Change Adjusted earnings per share (1) (2) $1.50 $1.21 $0.29 Total segment operating profit (unadjusted) (3) $1,388 1,139 $249 Adjusted segment
Slide 19: Q4 Adjusted Segment OP $1.4 Billion
19 Q4 Adjusted Segment OP $1.4 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $1,152 $1,199 $1,160 $1,002 $1,413* Ag Services and Oilseeds Carbohydrate Solutions Nutrition Other B
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) 2021 2020 Change 2021 2020 Change (1) Total Segment Operating Profit $ 1,388 $ 1,139 $ 249 $ 4,638 $ 3,455 $ 1,183 Proprietary business information of ADM. Specified items: Gains on sales
Slide 21: Balance Sheet Highlights
21 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Dec. 31, 2021 Dec. 31, 2020 Cash (1) $943 $667 Net property, plant, and equipment 9,890 9,951 Operating working capital (2) 10,546 10,481 - Total inventories 14,481 11,713 Total debt 9,539 9,929 - CP outstandi
Slide 22: Cash Flow Highlights
22 Cash Flow Highlights Proprietary business information of ADM. Year Ended Dec. 31 (Amounts in millions) 2021 2020 Cash from operations before working capital changes $3,941 $3,129 Changes in working capital (1) 2,654 (912) Purchases of property, plant, and equipment (1,169) (823) Net assets of bus
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 2021 2020 Change Revenues $ 23,090 $ 17,978 $ 5,112 Gross profit 1,650 1,352 298 Selling, general and administrative expenses 786 749 37 Asset impairment,
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 2021 2020 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,011 $ 782 $ 1.38 $ 756 $ 687 $ 1.22 Adjus
Slide 25: ROIC versus WACC
25 ROIC versus WACC Q4 CY21 LT ROIC Objective: 10% Proprietary business information of ADM. (1)(2) Trailing 4Q Average Adjusted ROIC 10.0 % Annual WACC 5.25 % Trailing 4Q Average Adjusted EVA $1,503M Long-Term WACC 7.0 % 11% Trailing 4Q Average ROIC (1)(3) 9.2 % 10% 9% 8% 7% 6% 5% 4% Q4 Q4 Q4 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, 2021 June 30, 2021 Sept. 30, 2021 Dec. 31, 2021 Dec. 31, 2021 Net earnings attributable to ADM $ 689 $ 712 $ 526 $ 782 $ 2,709 Adjustments
Slide 27: Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
27 Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)(1) Four Quarters Ended December 31, 2021 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Mar. 31, 2021 June 30, 2021 Sept. 30, 2021 Dec. 31, 2021 D
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
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