Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q3 2023 Earnings Presentation
27 slides from Archer-daniels-midland's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter 2023 Earnings Conference Call
1 Proprietary business information of ADM. Third Quarter 2023 Earnings Conference Call October 24, 2023
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: Financial Highlights
3 Financial Highlights Proprietary business information of ADM. 3Q 2023 3Q 2023 Trailing 4-Quarter Adjusted Earnings Adjusted Segment Adjusted ROIC1 Per Share1,2 Operating Profit1,3 $1.63 $1.5B 13.2% YTD 2023 YTD 2023 YTD 2023 Adjusted Earnings Adjusted Segment Cash from Operations Per Share1,2 Oper
Slide 4: Evolving Growth Across the Full Value Chain
4 Evolving Growth Across the Full Value Chain Proprietary business information of ADM.
Slide 5: Ag Services & Oilseeds
5 Ag Services & Oilseeds Solid third quarter and year-to-date performance Positioned to Proprietary business information of ADM. Support the Energy Transition Segment Operating Profit New soybean crush facility in Spiritwood, North Dakota adds $1,250 $4,000 1.5M MT of annual crush capacity $1,075 $1
Slide 6: Carbohydrate Solutions
6 Carbohydrate Solutions Strong third quarter in robust margin environment Proprietary business information of ADM. Evolving & Winning Posted nearly 50% profit Segment Operating Profit growth while innovating to deliver carbon reduction solutions to the Decatur complex $500 $460 $1,250 $1,099 $400 $
Slide 7: Nutrition
7 Nutrition Lower quarterly and year-to-date results Launching Digital Proprietary business information of ADM. Transformations Successful go-live of Revenue Segment Operating Profit 1ADM implementation in our EMEA Flavors $2,000 $1,864 $1,732 $200 $177 business $136 in millions in millions $1,000 $
Slide 8: Other Business Results and Corporate
8 Other Business Results and Corporate Proprietary business information of ADM. Other Business Corporate $60 $500 $(390) $46 $(329) in millions $40 $250 in millions $20 $18 $— $(250) $— Q3 2022 Q3 2023 Q3 2022 Q3 2023 $2,000 $300 $(918) $(1,105) $229 in millions $1,000 $200 in millions $— $100 $78 $
Slide 9: Robust Financial Flexibility to Support Strategic Growth
9 Robust Financial Flexibility to Support Strategic Growth Proprietary business information of ADM. $6.0 Q3 YTD'23 Capital Expenditures $4.7 $4.0 $3.8 $1.1 billion Cash from Operations Before Billions Q3 YTD'23 Dividends Working Capital1 $2.0 $0.7 billion $0.0 Q3 YTD 2022 Q3 YTD 2023 Q3 YTD'23 Share
Slide 10: Proprietary business information of ADM.
10 Proprietary business information of ADM.
Slide 11: Additional Facts and Information
Additional Facts and Information
Slide 12: Industry Environment
12 Industry Environment Proprietary business information of ADM. Current Q2 Call Farmer Selling2 Spot Gross US$/MT US$/MT 2023/2024 Crop Year Crush Margins1 Current 5-Year Prior Average Year Soybeans US $80-$85 $70-$80 Corn US 26% 33% 34% Europe $20-$25 $20-$30 Brazil n/a n/a n/a Brazil $15-$35 $15-
Slide 13: ADM Additional Information
13 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 22 CY 23 Q3 23 Q3 22 Q3 23 Q3 22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (1)(2) Adjusted EBITDA $ 1,491 $ 1,639 $ 6,566 $ 6,553
Slide 14: ADM Additional Information: Nutrition
14 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. Q3 23 Q3 22 YTD FY23 YTD FY22 Q3 23 Q3 22 YTD FY23 YTD FY22 GAAP Revenues GAAP Operating Profit
Slide 15: Financial Appendix
15 Financial Appendix
Slide 16: Q3 2023 Financial Highlights
16 Q3 2023 Financial Highlights Proprietary business information of ADM. Quarter Ended September 30 (Amounts in millions except per share data and percentages) 2023 2022 Change Adjusted earnings per share (1) (2) $1.63 $1.86 ($0.23) Total segment operating profit (unadjusted) (3) $1,421 1,559 ($138)
Slide 17: Q3 Adjusted Segment OP $1.5 Billion
17 Q3 Adjusted Segment OP $1.5 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $1,579 $1,665 $1,725 $1,628 $1,492* 2,000 1,750 1,500 1,250 1,000 750 500 250 — Ag Services and Oilse
Slide 18: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 18 Quarter Ended Sep. 30 (Amounts in millions) 2023 2022 Change Proprietary business information of ADM. (1) Total Segment Operating Profit $ 1,421 $ 1,559 $ (138) Specified items: (Gain) loss on sale of assets 2 (29) 31 Impairment, restructuring, and s
Slide 19: Balance Sheet Highlights
19 Balance Sheet Highlights Proprietary business information of ADM. September 30 (Amounts in millions) 2023 2022 Cash (1) $ 1,498 $ 1,099 Net property, plant, and equipment 10,218 9,605 Operating working capital (2) 11,036 11,603 - Total inventories 11,224 13,282 Total debt 8,341 8,740 - CP outstan
Slide 20: Cash Flow Highlights
20 Cash Flow Highlights Proprietary business information of ADM. Nine Months Ended Sep. 30 (Amounts in millions) 2023 2022 Cash from operations before working capital changes $ 3,804 $ 4,657 Changes in working capital (1,913) (1,309) Purchases of property, plant, and equipment (1,055) (841) Net asse
Slide 21: GAAP Statement of Earnings Summary
21 GAAP Statement of Earnings Summary Proprietary business information of ADM. Quarter Ended Sep. 30 (Amounts in millions except per share data) 2023 2022 Change Revenues $ 21,695 $ 24,683 $ (2,988) Gross profit 1,810 1,811 (1) Selling, general and administrative expenses 815 818 (3) Asset impairmen
Slide 22: Adjusted Earnings Per Share (EPS)
22 Adjusted Earnings Per Share (EPS) Proprietary business information of ADM. Quarter Ended Sep. 30 2023 2022 (Amounts in millions except per share data) Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,031 $ 821 $ 1.52 $ 1,230 $ 1,031 $ 1.83 A
Slide 23: ROIC versus WACC
23 ROIC versus WACC Trailing 4Q Average Adjusted ROIC(1)(2) Q3 CY23 13.2 % LT ROIC Objective: 10% Proprietary business information of ADM. Annual WACC 8.00 % Trailing 4Q Average Adjusted EVA $1.8B Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 12.6 % 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% Q3 Q3 Q3
Slide 24: Return on Invested Capital
24 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Four Quarters Quarter Ended Ended Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 2023 Sep. 30, 2023 Net earnings attributable to ADM $ 1,019 $ 1,170 $ 927 $ 821 $ 3,937 Adjustme
Slide 25: Adjusted EBITDA, Four Quarters Ended September 30, 2023
25 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended September 30, 2023 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 202
Slide 26: Adjusted Net Debt to Adjusted EBITDA
26 Adjusted Net Debt to Adjusted EBITDA Proprietary business information of ADM. Adjusted Net Debt September 30 (Amounts in millions) 2023 2022 Short-term debt $ 116 $ 181 Current maturities of long-term debt 1 888 Long-term debt 8,224 7,671 Total Debt 8,341 8,740 Cash and cash equivalents (1,498) (
Slide 27: Notes: Non-GAAP Reconciliation
27 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 — Q3 2023 Earnings Presentation on 6ix