Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q4 2024 Earnings Presentation
24 slides from Archer-daniels-midland's earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Conference Call
Proprietary business information of ADM. Fourth Quarter and Full Year 2024 Earnings Conference Call February 4, 2025 Proprietary business information of ADM.
Slide 2: Cautionary Note Regarding Forward-Looking Statements
2 Cautionary Note Regarding Forward-Looking Statements Proprietary business information of ADM. This presentation contains “forward-looking statements” within These forward-looking statements are not guarantees of future the meaning of the Private Securities Litigation Reform Act of performance and
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures 6. Adjusted Economic Value Added (EVA): Adjusted economic value Proprietary business information of ADM. added is ADM’s trailing 4-quarter economic value added for specified items. The Company calculates economic value added by comparing The Company uses certain “Non-GA
Slide 4: Performance Highlights Q4 and FY 2024
4 Performance Highlights Proprietary business information of ADM. Q4 and FY 2024 2024 Accomplishments Strong crush volumes in canola/rapeseed and LATAM Q4 2024 Q4 2024 Trailing 4-Quarter Adjusted Earnings Per Share1,2 Total Segment Operating Profit1,3 Average Adjusted ROIC1 Ramp-up of new capaci
Slide 5: 2025 Focus
5 2025 Focus Proprietary business information of ADM. Execution and simplification to address external uncertainty External Execution and Cost Focus Simplification Focus Environment • Address AS&O targeted plant • Address performance, demand and Uncertainty efficiency + restore operations at capacity
Slide 6: 2025 Focus: Capital discipline and organic investment
6 2025 Focus Proprietary business information of ADM. Capital discipline and organic investment Increase in capital expenditures Returned >$ 11B of cash to shareholders support organic growth initiatives over the last 5 years $1.6B $1.5B -$1.7B $2.7B Dividend $1.5B Share Repo $2.3B $1.3B $1.2B $1.5B
Slide 7: Ag Services & Oilseeds Segment Performance
Ag Services & Oilseeds Segment Performance 7 Segment Operating Profit (in millions of dollars) Proprietary business information of ADM. Ample global supplies drove balanced supply and demand conditions, leading to margin moderation across the segment Ag Services: Improved river conditions supported h
Slide 8: Carbohydrate Solutions Segment Performance
Carbohydrate Solutions Segment Performance 8 Segment Operating Profit (in millions of dollars) Proprietary business information of ADM. Improved volumes, manufacturing costs, and insurance recoveries offset by lower margins in EMEA and ethanol $319 $309 S&S: Lower sweetener margins in EMEA; Strong uti
Slide 9: Nutrition Segment Performance
Nutrition Segment Performance 9 Revenue and Segment Operating Profit Proprietary business information of ADM. Headwinds from unplanned downtime at Decatur East were partially offset by improved volumes and insurance recoveries Revenue (in millions of dollars) Q4 2024: Up 3%. Excluding M&A, down (3)%;
Slide 10: Cash Flow from Operations and Cash Deployment
Cash Flow from Operations and Cash Deployment 10 FY 2024 versus FY 2023 Proprietary business information of ADM. Solid cash position despite lower operating profit year-over-year Cash Flow from Operations before Working Capital1 $ 4.7B Cash flow from operations before working capital down due to lowe
Slide 11: Market Context for 2025 Outlook
11 Market Context for 2025 Outlook Proprietary business information of ADM. 1H 2025 Market Drivers 2H 2025 Market Drivers • Trade and biofuels policy uncertainty • 45Z guidance supports domestic vegetable oil demand • Record soybean production continues to grow stocks • Livestock industry outlook dr
Slide 12: Segment Outlook Q1 2025 and FY 2025
Segment Outlook 12 Q1 2025 and FY 2025 Proprietary business information of ADM. Segment Q1 2025 FY 2025 Planning Assumptions Ag Services & Oilseeds Expect operating Expect operating • FY 2025: Expect soybean crush margins to range from $45 - profit to be down profit to be below to $55/MT, down ~$5/M
Slide 13: Consolidated Outlook
Consolidated Outlook 13 Proprietary business information of ADM. Metric 2023 2024 2025 Guidance1 Adjusted EPS1,3 $6.98 $4.74 $4.00 – $4.754 Corporate Costs* $1.6 billion $1.7 billion $1.7 – $1.8 billion Corporate Net Interest Expense $431 million $482 million ~$435 million Capital Expenditures $1.5
Slide 14: Focused on a broad self-help agenda given dynamic market
14 Focused on Proprietary business information of ADM. a broad self-help agenda given Execution and Simplification dynamic Cost Focus Focus market Targeted Organic Capital Discipline Growth Investment
Slide 15: Appendix
15 Appendix
Slide 16: Total Segment Operating Profit Reconciliation and Corporate Results
Total Segment Operating Profit Reconciliation and Corporate 16 Results Proprietary business information of ADM. Quarter Ended Dec. 31 Year Ended Dec. 31 (Amounts in millions) 2024 2023 Change 2024 2023 Change Earnings before income taxes 667 734 (67) 2,255 4,294 (2,039) Other Business (earnings) loss
Slide 17: Balance Sheet Highlights
17 Balance Sheet Highlights Proprietary business information of ADM. December 31 (Amounts in millions) 2024 2023 Cash $ 611 $ 1,368 Short-term marketable securities 246 — Net property, plant, and equipment 10,837 10,508 Operating working capital (1) 9,501 9,843 - Total inventories 11,572 11,957 Tota
Slide 18: Cash Flow Highlights
18 Cash Flow Highlights Proprietary business information of ADM. Year Ended December 31 (Amounts in millions) 2024 2023 Cash from operations before working capital changes(1) $ 3,299 $ 4,727 Changes in working capital (519) (267) Purchases of property, plant, and equipment (1,563) (1,494) Net assets
Slide 19: GAAP Statement of Earnings Summary
19 GAAP Statement of Earnings Summary Proprietary business information of ADM. Quarter ended December 31 Year ended December 31 (Amounts in millions except per share data) 2024 2023 Change 2024 2023 Change Revenues $ 21,498 $ 22,978 $ (1,480) $ 85,530 $ 93,935 $ (8,405) Gross profit 1,358 1,740 (382
Slide 20: Reconciliation of Adjusted Net Earnings and Adjusted EPS
20 Reconciliation of Adjusted Net Earnings and Adjusted Proprietary business information of ADM. Earnings Per Share (EPS) (1) Quarter ended December 31 Year ended December 31 2024 2023 2024 2023 In millions Per share In millions Per share In millions Per share In millions Per share Net earnings and
Slide 21: ROIC versus WACC
21 ROIC versus WACC Q4 CY24 Proprietary business information of ADM. Trailing 4Q Average Adjusted ROIC(1)(2) 8.3 % LT ROIC Objective: 10% Annual WACC 8.0 % Trailing 4Q Average Adjusted EVA $0.1B Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 6.7 % 1. Non-GAAP measure - see notes on page 3 2. A
Slide 22: Reconciliation of Adjusted ROIC Earnings and Adjusted ROIC
22 Reconciliation of Adjusted ROIC Earnings and Adjusted ROIC Proprietary business information of ADM. ROIC Earnings (Amounts in millions) Four Quarters Quarter Ended Ended Mar. 31, 2024 Jun. 30, 2024 Sep. 30, 2024 Dec. 31, 2024 Dec. 31, 2024 Net earnings attributable to ADM $ 729 $ 486 $ 18 $ 567 $
Slide 23: Reconciliation of Adjusted EBITDA
23 Reconciliation of Adjusted Earnings Before Interest, Taxes, Proprietary business information of ADM. Depreciation, and Amortization (EBITDA) (1) Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Mar. 31, 2024 Jun. 30, 2024 Sep. 30, 2024 Dec. 31, 2024 Dec. 31, 2024 Net ear
Slide 24: Reconciliation of Adjusted Net Debt and Adjusted Net Debt / Adjusted EBITDA
24 Reconciliation of Adjusted Net Debt (1) to Total Debt and Proprietary business information of ADM. Adjusted Net Debt (1) / Adjusted EBITDA (1) Adjusted Net Debt December 31 (Amounts in millions) 2024 2023 Short-term debt $ 1,903 $ 105 Current maturities of long-term debt 674 1 Long-term debt 7,58
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