Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q2 FY2010 Earnings Presentation
25 slides from Archer-daniels-midland's earnings presentation, Feb 2, 2010
Slide 1: Second Quarter FY2010 Earnings Conference Call
Second Quarter FY2010 E Earnings i Conference C f Call C ll February 2, 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 9 Chairman’s Perspective 4 9 Financial Highlights 5 9 Segment Operating Profit Summary 6 9 Segment Operating Profit 7 – 10 9 Corporate Highlights 11 9 Statement of Earnings Summary 12 9 Balance Sheet Highlights 13 9 Cash Flow Summary 14 9 Financial Returns 15 9 Q&A 16 9 Upcomi
Slide 4: Chairman's Perspective
Chairman’s Perspective • Safety “I’ very pleased “I’m l d with ith the th performance f off our people l and with our results this quarter. • Financial results While our earnings, earnings in total, total were comparable to last year’s strong second quarter, the market conditions and the mix of earn
Slide 5: Financial Highlights
Financial Highlights (Amounts in millions, except per share data and percentages) Quarter Ended Six Months Ended December 31 December 31 2009 2008 Change 2009 2008 Change S Segment t operating fit(1) ti profit $ 970 $ 815 19% $1 744 $1,744 $1 991 $1,991 (12%) Net earnings attributable to ADM(2) $ 56
Slide 6: Segment Operating Profit Summary
Segment Operating Profit Summary (A (Amounts t iin millions) illi ) Quarter Ended Six Months Ended December 31 December 31 2009 2008 Change 2009 2008 Change Oilseeds Processing Crushing & Origination $ 193 $ 187 $ 328 $ 526 Refining Packaging Refining, Packaging, Biodiesel & Other 76 86 146 192 Asia
Slide 7: Segment Operating Profit – Oilseeds Processing
Segment Operating Profit – Oilseeds Processing (Amounts in millions) $37 $352 $6 $(10) $319 Q2-FY09 Crushing & Refining Packaging Asia Q2-FY10 Operating profit Origination Biodiesel & Other Operating profit Crushing & Origination Refining, Packaging, Biodiesel & Other Asia Second Quarter FY2010 7
Slide 8: Segment Operating Profit – Corn Processing
Segment Operating Profit – Corn Processing (Amounts in millions) $230 $290 $31 $29 Q2-FY09 Sweeteners & Bioproducts Q2-FY10 Operating Profit Starches Operating Profit Sweeteners & Starches Bioproducts Second Quarter FY2010 8
Slide 9: Segment Operating Profit – Ag Services
Segment Operating Profit – Ag Services (Amounts in millions) $462 $(282) $(30) $150 Q2-FY09 Merchandising Transportation Q2-FY10 Operating Profit & Handling Operating Profit Merchandising & Handling Transportation Second Quarter FY2010 9
Slide 10: Segment Operating Profit – Other
Segment Operating Profit – Other (Amounts in millions) $65 $178 $108 $5 Q2-FY09 Wheat, Cocoa & Malt Financial Q2-FY10 Operating Profit Operating Profit Wheat, Cocoa & Malt Financial Second Quarter FY2010 10
Slide 11: Corporate Highlights
Corporate Highlights (Amounts in millions) Quarter Ended Six Months Ended December 31 December 31 2009 2008 Change 2009 2008 Change LIFO credit (charge) $ (54) $ 123 $ (177) $ 22 $ 576 $ (554) (1) (1) Interest expense - net (71) (42) (29) (136) (70) (66) Corporate costs & other (61) (79) 18 (129) (1
Slide 12: Statement of Earnings Summary
Statement of Earnings Summary (Amounts in millions millions, except per share data and percentages) Q Quarter Ended Six Months Ended December 31 December 31 (1) (1) 2009 2008 Change 2009 2008 Change Net sales and other $ 15,913 $ 16,673 (5%) $ 30,834 $ 37,833 (18%) operating income ~~~~~~~~~~~~~~~~~
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in millions) December 31 June 30 2009 2009 Cash(1) $ 1,634 $ 1,555 Net property, plant and equipment 8,636 7,950 Operating working capital(2) 9,621 9,372 - Total inventories 9,126 7,782 (3) Total debt 7,865 7,996 - CP outstanding 0 0 (3) Shareholders' equity 14,795
Slide 14: Cash Flow Summary
Cash Flow Summary (Amounts in millions) Six Months Ended December 31 2009 2008(1) Cash from operations before working capital changes $ 1,660 $ 1,572 Changes in working capital (280) 4,293 Purchases of property, plant and equipment (939) (1,069) Business acquisitions (57) (24) Business disposals - 2
Slide 15: Financial Returns
Financial Returns $20 20% $16 16% Net Assett Base ($B) $12 12% $8 8% $4 4% $0 0% (2) (2) (2) Q209 Q309 Q409 Q110 Q210 Fixed Investment Working Capital/Other Liabilities (1) (1) Annualized quarterly RONA % Annualized quarterly ROE % (1) Trailing 4 quarter RONA % Trailing 4 quarter ROE % (1)Adjusted f
Slide 16: Q&A
Q&A 16
Slide 17: Upcoming Events
Upcoming Events • CAGNY - Boca Raton, FL Februaryy 16, 2010 • CLSA (Calyon) Conference - March 3, 2010 S Francisco, San F i CA Second 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 (1) (1) Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Average Investment in affiliates $ 2 369 2,369 $ 2 459 2,459 $ 2 559 2,559 $ 2 693 2,693 2 520 2,520 Goodwill 493 532 531 524 520 Net PP&E 7,583 7,950 8,3
Slide 20: LIFO Adjusted RONA Earnings – FY2010
LIFO Adjusted RONA Earnings – FY2010 ((Amounts in millions)) Four Quarters Quarter Ended Ended (1) (1) Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Dec 31, 2009 Net earnings attributable to ADM $ 2 $ 58 $ 496 $ 567 $ 1,123 Adjustments Investment Income (43) (36) (30) (36) (145) Interest Expen
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 December 31, 2009 LIFO charge $ - $ - $ - $ - $ (54) $ (54) $ (34) Quarter ended December 31, 2008 LIFO credit $ - $ - $ - $ - $ 123 $ 1
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 Six Months ended December 31, 2009 LIFO credit $ - $ - $ - $ - $ 22 $ 22 $ 14 Six Months ended December 31, 2008 LIFO credit $ - $ - $ - $ - $ 576 $ 5
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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