Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q3 2024 Earnings Presentation
25 slides from Archer-daniels-midland's earnings presentation, Dec 2, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Proprietary business information of ADM. Exhibit 99.1 Third Quarter 2024 Earnings Conference Call December 3, 2024 Proprietary business information of ADM.
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Proprietary business information of ADM. 2 Cautionary Note Regarding Forward-Looking Statements 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
Proprietary business information of ADM. 3 Non-GAAP Financial Measures 6. Adjusted Economic Value Added: Adjusted economic value added The Company uses certain “Non-GAAP” financial measures as defined by 3. Adjusted Return on Invested Capital (ROIC): Adjusted ROIC is is ADM’s trailing 4-quarter econ
Slide 4: Financial Highlights Q3 and YTD 2024
Proprietary business information of ADM. 4 Financial Highlights Q3 and YTD 2024 (Unless Otherwise Stated) Q3 2024 Q3 2024 TRAILING 4-QUARTER 1,2 1,3 1 Adjusted Earnings Per Share Total Segment Operating Profit Average Adjusted ROIC $1.0B 8.8% $1.09 Down 28% relative to prior year ROIC lower due to l
Slide 5: Accelerating actions on our value creation priorities
Proprietary business information of ADM. 5 Accelerating actions on our value creation priorities Expanding productivity agenda in the face of a weaker market outlook and slower recovery in Nutrition • Continuing capital discipline • Advancing strategic initiatives • Strengthening operational leaders
Slide 6: Summary Segment Performance YTD 2024
Proprietary business information of ADM. 6 Summary Segment Performance YTD 2024 versus Comparable Prior Year Period (in millions of dollars) AS&O Segment Operating Profit Carb. Solutions Segment Operating Profit Nutrition Segment Operating Profit (32)% (1)% (42)% $437 $3,113 $1,057 $1,066 $298 $1,80
Slide 7: Cash Flow from Operations and Cash Deployment
Proprietary business information of ADM. 7 Cash Flow from Operations and Cash Deployment YTD 2024 versus YTD 2023 Solid cash position despite lower operating profit year-over-year 1 Cash Flow from Operations before Working Capital Cash flow from operations before working $3.8B capital down 39% YTD,
Slide 8: Consolidated Outlook
Proprietary business information of ADM. 8 Consolidated Outlook Prior Revised FY 2023 FY 2024 FY 2024 YTD 2024 Metric Actual Guidance Guidance Actual 1,3 4 4 Adjusted EPS $6.98 $5.25 – $6.25 $4.50 – $5.00 $3.61 Corporate Costs* $1.6 billion ~$1.8 billion $1.7 – $1.8 billion $1.3 billion Corporate Ne
Slide 9: Key Priorities to Drive Improvement and Enhance Return
Proprietary business information of ADM. 9 Key Priorities to Drive Improvement and Enhance Return Improving Maintaining focus and execution capital discipline through stage- gated investments Procurement cost Remediating material Portfolio and network Digital transformation optimization strategy, in
Slide 10: Appendix
10 Appendix
Slide 11: Adjusted Earnings Per Share Q3 2024 and YTD 2024
Proprietary business information of ADM. 1,2 11 Adjusted Earnings Per Share Q3 2024 and YTD 2024 versus Comparable Prior Year Periods Earnings declined primarily due to lower margins and price, partially offset by improved volumes Margins/ price: Lower in AS&O and Carb Sol in Q3; lower in AS&O YTD.
Slide 12: Ag Services & Oilseeds Segment Performance
Proprietary business information of ADM. 12 Ag Services & Oilseeds Segment Performance Segment Operating Profit (in millions of dollars) Ag Services: Lower South American origination margins and Q3 2023 Ag Services Crushing RPO Wilmar Q3 2024Δ% volumes; Industry take or pay contracts; $48M of insura
Slide 13: Carbohydrate Solutions Segment Performance
Proprietary business information of ADM. 13 Carbohydrate Solutions Segment Performance Segment Operating Profit (in millions of dollars) Q3 2023 S&S VCP Q3 2024Δ% S&S: Lower co-product, ethanol, and EMEA region margins; Quarter $ 468 $52 $(68) $452 (3)% Higher volumes and margins in NA starches & sw
Slide 14: Nutrition Segment Performance
Proprietary business information of ADM. 14 Nutrition Segment Performance Revenue & Segment Operating Profit (in millions of dollars) Revenue: Up 3%. Excluding M&A, down (2)%; Strong Q3 2023 Human Nutrition Animal Nutrition Q3 2024Δ% volumes and favorable price/mix in Flavors and H&W were offset by
Slide 15: Other Business Results and Corporate
Proprietary business information of ADM. 15 Other Business Results and Corporate Q3 2024 and YTD 2024 versus Comparable Prior Year Periods (in millions of dollars) 2023 Other Business Operating Profit 2024Δ% Q3 2024 $46 $(63) $(17) N/A YTD 2024 $229 $(29) $200 (13)% Other Business Operating Profit:
Slide 16: Segment Operating Profit Outlook Q4 2024 and FY 2024
Proprietary business information of ADM. 16 Segment Operating Profit Outlook Q4 2024 and FY 2024 Prior Revised Segment Q4 2024 FY 2024 FY 2024 Fourth Quarter Planning Assumptions • Strong crop supplies in North America • Expect global soybean crush margins to be ~$55/metric ton Expect to be • High-s
Slide 17: Total Segment Operating Profit Reconciliation and Corporate Results
Proprietary business information of ADM. 17 Total Segment Operating Profit Reconciliation and Corporate Results Quarter Ended Sep. 30 Nine Months Ended Sep. 30 (Amounts in millions) 2024 2023 Change 2024 2023 Change Earnings before income taxes 108 1,031 (923) 1,588 3,560 (1,972) Other Business (ear
Slide 18: Balance Sheet Highlights
Proprietary business information of ADM. 18 Balance Sheet Highlights September 30 (Amounts in millions) 2024 2023 (1) Cash $ 784 $ 1,498 Net property, plant, and equipment 10,828 10,218 (2) Operating working capital 9,297 11,036 - Total inventories 10,746 11,224 Total debt 10,051 8,341 - CP outstand
Slide 19: Cash Flow Highlights
Proprietary business information of ADM. 19 Cash Flow Highlights Nine Months Ended September 30 (Amounts in millions) 2024 2023 (1) Cash from operations before working capital changes $ 2,341 $ 3,804 Changes in working capital 127 (1,913) Purchases of property, plant, and equipment (1,071) (1,055) N
Slide 20: GAAP Statement of Earnings Summary
Proprietary business information of ADM. 20 GAAP Statement of Earnings Summary Quarter ended September 30 Nine Months Ended September 30 (Amounts in millions except per share data) 2024 2023 Change 2024 2023 Change Revenues $ 19,937 $ 21,695 $ (1,758) $ 64,032 $ 70,957 $ (6,925) 1,365 1,810 (445) Gr
Slide 21: Reconciliation of Adjusted Net Earnings and Adjusted EPS
Proprietary business information of ADM. 21 Reconciliation of Adjusted Net Earnings and Adjusted Earnings Per Share (EPS) Year ended December 31 Quarter ended September 30 Nine Months Ended September 30 2023 2023 2024 2024 2023 In millions Per share In millions Per share In millions Per share In mil
Slide 22: Q3 ROIC versus WACC
Proprietary business information of ADM. 22 Q3 ROIC versus WACC CY24 (1)(2) Trailing 4Q Average Adjusted ROIC 8.8 % LT ROIC Objective: 10% Annual WACC 8.0 % Trailing 4Q Average Adjusted EVA $0.3B Long-Term WACC 7.0 % (1)(3) Trailing 4Q Average ROIC 6.6 % 1. Non-GAAP measure - see notes on page 3 2.
Slide 23: Reconciliation of Adjusted ROIC Earnings and Adjusted ROIC
Proprietary business information of ADM. 23 Reconciliation of Adjusted ROIC Earnings and Adjusted ROIC ROIC Earnings (Amounts in millions) Four Quarters Quarter Ended Ended Dec. 31, 2023 Mar. 31, 2024 Jun. 30, 2024 Sep. 30, 2024 Sep. 30, 2024 Net earnings attributable to ADM $ 565 $ 729 $ 486 $ 18 $
Slide 24: Reconciliation of Adjusted EBITDA
Proprietary business information of ADM. 24 Reconciliation of Adjusted Earnings Before Interest, Taxes, (1) Depreciation, and Amortization (EBITDA) (1) Adjusted EBITDA (Amounts in millions) Four Quarters Four Quarters Four Quarters Quarter Ended Ended Ended Ended Dec. 31, 2023 Mar. 31, 2024 Jun. 30,
Slide 25: Reconciliation of Adjusted Net Debt to Total Debt
Proprietary business information of ADM. 25 (1) Reconciliation of Adjusted Net Debt to Total Debt and (1) (1) Adjusted Net Debt / Adjusted EBITDA September 30 December 31 Adjusted Net Debt (Amounts in millions) 2024 2023 2023 Short-term debt $1,733 $116 $105 Current maturities of long-term debt 725
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