Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q3 2021 Earnings Presentation
25 slides from Archer-daniels-midland's earnings presentation, Oct 26, 2021
Slide 1: Third Quarter 2021 Earnings Conference Call
1 Proprietary business information of ADM. Third Quarter 2021 Earnings Conference Call October 26, 2021
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: Another Strong Quarter
3 Another Strong Quarter Proprietary business information of ADM. Adjusted Earnings Per Share1,2 Adjusted Segment Operating Profit1,3 $1.50 $1,500 $0.97 $1,002 $1.00 $0.89 $1,000 $849 in millions $0.50 $500 $0.00 $0 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Trailing 4-Quarters Adjusted ROIC1 Trailing 4-Quarte
Slide 4: Managing the Portfolio, Delivering High-Growth Opportunities
4 Managing the Portfolio, Delivering High-Growth Opportunities Proprietary business information of ADM.
Slide 5: Evolving Carbohydrate Solutions
5 Proprietary business information of ADM. Evolving Carbohydrate Solutions
Slide 6: Ag Services & Oilseeds: Substantial Profit Growth
6 Ag Services & Oilseeds Substantial Profit Growth Helping Hands Proprietary business information of ADM. Team ADM worked to provide housing, food, Segment Operating Profit generators and more to $700 support colleagues and get ADM operations up $618 and running after $600 Hurricane Ida $500 $436 $4
Slide 7: Carbohydrate Solutions: Great Execution, Agility, Higher Input Costs
7 Carbohydrate Solutions Great Execution, Agility, Higher Input Costs Decarbonizing Proprietary business information of ADM. In an industry first, ADM achieved net carbon neutral status for its U.S. Segment Operating Profit flour milling operations, $300 encompassing 22 mills across the country $246
Slide 8: Nutrition: GAAP Revenue Up 17%, Profits up 20%
8 Nutrition GAAP Revenue Up 17%, Up 15% Constant Currency; Celebrating Proprietary business information of ADM. Profits up 20% New Growth In September, ADM celebrated the opening of its new, state-of-the- Revenue Segment Operating Profit art flavor production facility in Pinghu, $2,000 $200 China $1
Slide 9: Other Business Results and Corporate
9 Other Business Results and Corporate Proprietary business information of ADM. Other Business Corporate $25 $800 $(704)1 $20 $700 $20 $600 $15 $500 $(347) in millions $400 in millions $10 $300 $200 $5 $100 $0 $0 -$100 -$5 Q3 2020 Q3 2021 $(5) -$10 Interest Q3 2020 Q3 2021 Unallocated Corporate Othe
Slide 10: Ending 2021 with Strong Momentum… And More to Come
10 Ending 2021 with Strong Momentum … And More to Come Proprietary business information of ADM. FRIDAY, DECEMBER 10
Slide 11: Additional Facts and Explanations
Additional Facts and Explanations
Slide 12: Industry Environment
12 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q2 Call Spot Gross US$/MT US$/MT 2021/2022 Crop Year Crush Margins1 5-Year Prior Soybeans Current Average Year US $50-$60 $45-$50 Corn Europe $60-$70 $10-$20 US 41% 38% 41% Brazil n/a n/a n/a Exp: $10-$20 Exp: $
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) CY 20 CY 21 Trailing 4-Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 21 Q3 20 Q3 21 Q3 20 Oilseeds 9,163 9,103 8,970 9,329 8,960 8,778 8,509 (1)
Slide 14: Financial Appendix
14 Financial Appendix
Slide 15: Q3 2021 Financial Highlights
15 Q3 2021 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended Sept. 30 2021 2020 Change Adjusted earnings per share (1) (2) $0.97 $0.89 $0.08 Total segment operating profit (unadjusted) (3) $1,000 $904 $96 Adjusted segment
Slide 16: Q3 Adjusted Segment OP $1 Billion
16 Q3 Adjusted Segment OP $1 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 $849 $1,152 $1,199 $1,160 $1,002* Ag Services and Oilseeds Carbohydrate Solutions Nutrition Other Busin
Slide 17: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 17 Quarter Ended Sept. 30 (Amounts in millions) 2021 2020 Change (1) Total Segment Operating Profit $ 1,000 $ 904 $ 96 Proprietary business information of ADM. Specified items: Gains on sales of assets — (57) 57 Impairment, restructuring, and settlement
Slide 18: Balance Sheet Highlights
18 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Sep. 30, 2021 Sep. 30, 2020 Cash (1) $1,083 $948 Net property, plant, and equipment 9,848 9,816 Operating working capital (2) 10,396 8,122 - Total inventories 11,169 8,884 Total debt 8,934 8,133 - CP outstandi
Slide 19: Cash Flow Highlights
19 Cash Flow Highlights Proprietary business information of ADM. Nine Months Ended Sept. 30 (Amounts in millions) 2021 2020 Cash from operations before working capital changes $3,090 $2,295 Changes in working capital (1) 2,763 792 Purchases of property, plant, and equipment (714) (558) Net assets of
Slide 20: GAAP Statement of Earnings Summary
20 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended Sept. 30 2021 2020 Change Revenues $20,340 $15,126 $5,214 Gross profit 1,326 1,042 284 Selling, general and administrative expenses 720 636 84 Asset impairment, ex
Slide 21: Adjusted Earnings Per Share (EPS)
21 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended Sept. 30 2021 2020 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 653 $ 526 $ 0.93 $ 200 $ 225 $ 0.40 Adjust
Slide 22: ROIC versus WACC
22 ROIC versus WACC Q3 CY21 LT ROIC Objective: 10% Proprietary business information of ADM. (1)(2) Trailing 4Q Average Adjusted ROIC 9.6 % Annual WACC 5.25 % Trailing 4Q Average Adjusted EVA $1,353M Long-Term WACC 7.0 % 11% Trailing 4Q Average ROIC (1)(3) 9.1 % 10% 9% 8% 7% 6% 5% 4% Q3 Q3 Q3 Q3 Q3 C
Slide 23: Return on Invested Capital
23 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Dec. 31, 2020 Mar. 31, 2021 Jun. 30, 2021 Sep. 30, 2021 Sep. 30, 2021 Net earnings attributable to ADM $ 687 $ 689 $ 712 $ 526 $ 2,614 Adjustment
Slide 24: Adjusted EBITDA Four Quarters Ended September 30, 2021
24 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended September 30, 2021 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Dec. 31, 2020 Mar. 31, 2021 Jun. 30, 2021 Sep. 30, 2
Slide 25: Notes: Non-GAAP Reconciliation
25 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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