Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q1 2022 Earnings Presentation
27 slides from Archer-daniels-midland's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Earnings Conference Call
1 Proprietary business information of ADM. First Quarter 2022 Earnings Conference Call April 26, 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: Continued Strong Performance
Living our Purpose 3 Continued Strong Performance Team ADM is donating food, shelter and money to support colleagues, farmers and other victims of the conflict in Ukraine. Proprietary business information of ADM. Adjusted Earnings Per Share1,2 Adjusted Segment Operating Profit1,3 $2.00 $1.90 $2,000
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: Proprietary business information of ADM.
6 Proprietary business information of ADM.
Slide 7: Ag Services & Oilseeds
7 Ag Services & Oilseeds Meeting Demand and Managing Risks in Dynamic Supporting Proprietary business information of ADM. Environment Food Security As the world's population Segment Operating Profit grows, ADM is serving a $1,200 vital role in meeting global nutrition needs. $1,008 $1,000 $800 $777
Slide 8: Carbohydrate Solutions
8 Carbohydrate Solutions Strong Execution Drives Higher Results Accelerating Proprietary business information of ADM. Evolution ADM's BioSolutions platform continued its Segment Operating Profit rapid expansion with $400 $55M in new revenue growth in Q1. $317 $300 $259 in millions $200 $100 $0 Q1 20
Slide 9: Nutrition
9 Nutrition Exceptional Revenue and Profit Growth Continue; Reinventing Proprietary business information of ADM. Raising 2022 Profit Growth Outlook to 20% Color ADM’s innovative PearlEdge™ white color Revenue Segment Operating Profit solutions expand our palette of colors $2,500 $200 $189 from natur
Slide 10: Other Business Results and Corporate
10 Other Business Results and Corporate Business the Proprietary business information of ADM. Right Way For the third straight year, ADM was Other Business Corporate recognized by Ethisphere as one of the world's $50 $400 most ethical companies. $42 $(281) $(268) $40 $300 in millions $200 $30 in mil
Slide 11: Proprietary business information of ADM.
11 Proprietary business information of ADM.
Slide 12: Upcoming Investor Events
12 Upcoming Investor Events Proprietary business information of ADM. Goldman Sachs Global Staples Forum (New York) May 17 BMO Global Farm to Market Conference (New York) May 18-19 JP Morgan Canada 1x1 Forum (Toronto) June 14 Jefferies Global Consumer Conference (Nantucket) June 21-22
Slide 13: Additional Facts and Information
Additional Facts and Information
Slide 14: Industry Environment
14 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q4 Call Spot Gross US$/MT US$/MT Crush Margins1 2021/2022 Crop Year 5-Year Prior 2022/2023 Crop Year Prior Current Current 5-Year Soybeans Average Year Average Year US $75-$85 $55-$65 Corn Europe $70-$90 $60-$80
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) CY 21 CY 22 Trailing 4-Quarters Q1 Q2 Q3 Q4 Q1 Q1 22 Q1 21 Q1 22 Q1 21 Oilseeds 8,960 8,778 8,509 8,878 8,491 (1)(2) Adjusted EBITD
Slide 16: Financial Appendix
16 Financial Appendix
Slide 17: Q1 2022 Financial Highlights
17 Q1 2022 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended March 31 2022 2021 Change Adjusted earnings per share (1) (2) $1.90 $1.39 $0.51 Total segment operating profit (unadjusted) (3) $1,539 1,105 $434 Adjusted segmen
Slide 18: Q1 Adjusted Segment OP $1.6 Billion
18 Q1 Adjusted Segment OP $1.6 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 $1,199 $1,160 $1,002 $1,413 $1,556* 1,750 1,500 1,250 1,000 750 500 250 — (250) Ag Services and Oilse
Slide 19: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 19 Quarter Ended Mar. 31 (Amounts in millions) 2022 2021 Change (1) Total Segment Operating Profit $ 1,539 $ 1,105 $ 434 Proprietary business information of ADM. Specified items: Gain on sale of assets (1) — (1) Impairment, restructuring, and settlement
Slide 20: Balance Sheet Highlights
20 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Mar. 31, 2022 Mar. 31, 2021 Cash (1) $1,079 $694 Net property, plant, and equipment 9,794 9,799 Operating working capital (2) 15,171 12,841 - Total inventories 17,290 12,764 Total debt 13,072 11,200 - CP outst
Slide 21: Cash Flow Highlights
21 Cash Flow Highlights Proprietary business information of ADM. Three Months Ended Mar. 31 (Amounts in millions) 2022 2021 Cash from operations before working capital changes $1,616 $1,202 Changes in working capital (2,822) (904) Purchases of property, plant, and equipment (217) (174) Sub-total (1,
Slide 22: GAAP Statement of Earnings Summary
22 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended Mar. 31 2022 2021 Change Revenues $23,650 $18,893 $4,757 Gross profit 1,897 1,548 349 Selling, general and administrative expenses 829 749 80 Asset impairment, exi
Slide 23: Adjusted Earnings Per Share (EPS)
23 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended Mar. 31 2022 2021 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,271 $ 1,054 $ 1.86 $ 824 $ 689 $ 1.22 Adj
Slide 24: ROIC versus WACC
24 ROIC versus WACC Trailing 4Q Average Adjusted ROIC(1)(2) Q1 CY22 10.6 % LT ROIC Objective: 10% Proprietary business information of ADM. Annual WACC 5.50 % Trailing 4Q Average Adjusted EVA $1,673M Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 10.0 % 11% 10% 9% 8% 7% 6% 5% 4% Q1 Q1 Q1 Q1 Q1
Slide 25: Return on Invested Capital
25 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended June 30, 2021 Sep. 30, 2021 Dec. 31, 2021 Mar. 31, 2022 Mar. 31, 2022 Net earnings attributable to ADM $ 712 $ 526 $ 782 $ 1,054 $ 3,074 Adjustme
Slide 26: Adjusted EBITDA Four Quarters Ended March 31, 2022
26 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended March 31, 2022 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended June 30, 2021 Sep. 30, 2021 Dec. 31, 2021 Mar. 31, 2022 Ma
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
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