Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q3 FY2010 Earnings Presentation
25 slides from Archer-daniels-midland's earnings presentation, May 4, 2010
Slide 1: Third Quarter FY2010 Earnings Conference Call
Third Quarter FY2010 E Earnings i Conference C f Call C ll May 4, 2010 Patricia Woertz John Rice Steve Mills Dwight Grimestad Chairman & CEO EVP, Commercial & Production EVP & CFO VP, Investor Relations 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some of our comments constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financial results. The statements Th t t t are based b d on many assumptions ti andd f
Slide 3: Table of Contents
Table of Contents Page Chairman’s Perspective 4 Financial Highlights 5 Segment Operating Profit Summary 6 Segment Operating Profit 7 – 10 Corporate Highlights 11 Statement of Earnings Summary 12 Balance Sheet Highlights 13 Cash Flow Summary 14 Financial Returns 15 Q&A 16 Upcomi
Slide 4: Chairman's Perspective
Chairman’s Perspective • Safety “In the third quarter, the ADM team did a good job managing our large, flexible origination and processing • Financial results network to meet global demands demands. We also completed startup of our Columbus ethanol • Strategic update dry mill and began shipments fro
Slide 5: Financial Highlights
Financial Highlights (Amounts in millions, except per share data and percentages) Quarter Ended Nine Months Ended March 31 March 31 2010 2009 Change 2010 2009 Change S Segment t operating fit(1) ti profit $ 696 $ 254 $ 442 $2 440 $2,440 $2 245 $2,245 $ 195 Net earnings attributable to ADM $ 421 $ 3
Slide 6: Segment Operating Profit Summary
Segment Operating Profit Summary (A (Amounts t iin millions) illi ) Quarter Ended Nine Months Ended March 31 March 31 2010 2009 Change 2010 2009 Change Oilseeds Processing Crushing & Origination $ 272 $ 100 $ 600 $ 626 Refining, Packaging, Biodiesel & Other 66 52 212 244 Asia 67 72 229 183 405 224 $
Slide 7: Segment Operating Profit – Oilseeds Processing
Segment Operating Profit – Oilseeds Processing (Amounts in millions) $14 $(5) $405 $172 $224 Q3-FY09 Crushing & Refining Packaging Asia Q3-FY10 Operating profit Origination Biodiesel & Other Operating profit Crushing & Origination Refining, Packaging, Biodiesel & Other Asia Third Quarter FY2010 7
Slide 8: Segment Operating Profit – Corn Processing
Segment Operating Profit – Corn Processing (Amounts in millions) $156 $104 $49 $(101) Q3-FY09 Sweeteners & Bioproducts Q3-FY10 Operating Profit Starches Operating Profit Sweeteners & Starches Bioproducts Third Quarter FY2010 8
Slide 9: Segment Operating Profit – Ag Services
Segment Operating Profit – Ag Services (Amounts in millions) $63 $(19) $165 $121 Q3-FY09 Merchandising Transportation Q3-FY10 Operating Profit & Handling Operating Profit Merchandising & Handling Transportation Third Quarter FY2010 9
Slide 10: Segment Operating Profit – Other
Segment Operating Profit – Other (Amounts in millions) $30 $22 $(140) $132 Q3-FY09 Wheat, Cocoa & Malt Financial Q3-FY10 Operating Profit Operating Profit Wheat, Cocoa & Malt Financial Third Quarter FY2010 10
Slide 11: Corporate Highlights
Corporate Highlights (Amounts in millions) Quarter Ended Nine Months Ended March 31 March 31 2010 2009 Change 2010 2009 Change LIFO credit (charge) $ 43 $ (5) $ 48 $ 65 $ 571 $ (506) Interest expense - net (73) (59) (14) (209) (129) (80) Debt buyback costs (75) - (75) (75) - (75) Corporate costs & o
Slide 12: Statement of Earnings Summary
Statement of Earnings Summary (Amounts in millions millions, except per share data and percentages) Quarter Q t Ended E d d Ni Nine M Months th Ended E d d March 31 March 31 2010 2009 Change 2010 2009 Change Net sales and other $ 15,145 $ 14,842 2% $ 45,979 $ 52,675 (13%) operating income ~~~~~~~~~~
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in millions) March 31 June 30 2010 2009 Cash(1) $ 2,066 $ 1,555 Net property, plant and equipment 8,642 7,950 Operating working capital(2) 8,409 9,372 - Total inventories 8,219 7,782 Total debt 7,421 7,996 - CP outstanding 0 0 Shareholders' equity 14,769 13,653 (1)C
Slide 14: Cash Flow Summary
Cash Flow Summary (Amounts in millions) Nine Months Ended March 31 2010 2009 Cash from operations before working capital changes $ 2,018 $ 2,020 Changes in working capital 757 3,831 Purchases of property, plant and equipment (1,230) (1,462) Business acquisitions (59) (44) Business disposals - 258 Ma
Slide 15: Financial Returns
Financial Returns $20 20% $16 16% Net Asset Base ($B) $12 12% $8 8% $4 4% $0 0% Q209 Q309 Q409 Q110 Q210 Q310 (1) (1) Fixed Investment Working Capital/Other Liabilities Trailing 4 quarter RONA % (1) Trailing 4 quarter ROE % Annualized quarterly RONA % Annualized quarterly ROE % Trailing 4 quarter RO
Slide 16: Q&A
Q&A 16
Slide 17: Upcoming Events
Upcoming Events • BMO Capital p Markets 2010 Agriculture, g , May 19, 19 2010 Protein & Fertilizer Conference • Sanford C. Bernstein Strategic June 2, 2010 Decisions Conference • Deutsche Bank 7th Annual Global June 15, 2010 Consumer Conference Third Quarter FY2010 17
Slide 18: Appendix
Appendix 18
Slide 19: LIFO Adjusted RONA Assets – FY2010
LIFO Adjusted RONA Assets – FY2010 ((Amounts in millions)) Quarter Ended Four Quarter Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Average Investment in affiliates $ 2 459 2,459 $ 2 559 2,559 $ 2 693 2,693 $ 2 671 2,671 2 596 2,596 Goodwill 532 531 524 519 526 Net PP&E 7,950 8,366 8,636 8,642
Slide 20: LIFO Adjusted RONA Earnings – FY2010
LIFO Adjusted RONA Earnings – FY2010 ((Amounts in millions)) Four Quarters Quarter Ended Ended Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 Mar 31, 2010 Net earnings attributable to ADM $ 58 $ 496 $ 567 $ 421 $ 1,542 Adjustments Investment Income (36) (30) (36) (34) (136) Interest Expense 98
Slide 21: Summary of Specified Items
Summary of Specified Items ((Amounts in millions)) Oilseeds Corn Ag Impact Impact Processing Processing Services Other Corporate Before Tax After Tax Quarter ended March 31, 2010 LIFO credit $ - $ - $ - $ - $ 43 $ 43 $ 27 Debt buyback costs - - - - (75) (75) (47) Quarter ended March 31, 2009 LIFO ch
Slide 22: Summary of Specified Items
Summary of Specified Items ((Amounts in millions)) Oilseeds Corn Ag Impact Impact Processing Processing Services Other Corporate Before Tax After Tax Nine Months ended March 31, 2010 LIFO credit $ - $ - $ - $ - $ 65 $ 65 $ 41 Debt buyback costs - - - - (75) (75) (47) Nine M Ni Months th ended d d Ma
Slide 23: Processed Volumes
Processed Volumes Metric Tons Processed ((000s)) Fiscal Year 2004 2005 2006 2007 2008 2009 Oilseeds Processing 26 397 26,397 27 079 27,079 28 004 28,004 28 439 28,439 29 532 29,532 28 248 28,248 Corn Processing 17,217 17,321 17,918 18,043 17,666 17,833 (1) Wheat, Cocoa and Malt 7,948 7,660 7,690 7,2
Slide 24: Notes: Non-GAAP Reconciliation and Restatement Information
Notes: Non-GAAP Reconciliation and Restatement Information (1) 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 should be co
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