Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q2 2022 Earnings Presentation
27 slides from Archer-daniels-midland's earnings presentation, Jul 26, 2022
Slide 1: Second Quarter 2022 Earnings Conference Call
1 Proprietary business information of ADM. Second Quarter 2022 Earnings Conference Call July 26, 2022
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: Strong Execution, Advancing the Strategy
3 Strong Execution, Advancing the Strategy Proprietary business information of ADM. Adjusted Earnings Per Share1,2 Adjusted Segment Operating Profit1,3 $3.00 $2,000 $1,849 $2.15 $2.00 $1,160 in millions $1.33 $1,000 $1.00 $ $ Q2 2021 Q2 2022 Q2 2021 Q2 2022 Trailing 4-Quarters Adjusted ROIC1 Trailin
Slide 4: Proprietary business information of ADM.
4 Proprietary business information of ADM.
Slide 5: Proprietary business information of ADM.
5 Proprietary business information of ADM.
Slide 6: Ag Services & Oilseeds
6 Ag Services & Oilseeds Exceptional Results in Dynamic Environment Expanding Proprietary business information of ADM. Regenerative Ag With $20M committed, Segment Operating Profit and FBN partner- ship to offer technology to $1,250 55,000 growers, ADM is $1,119 powering sustainable agriculture $1,0
Slide 7: Carbohydrate Solutions
7 Carbohydrate Solutions Meeting Strong Demand, Delivering Higher Results Continuing the Proprietary business information of ADM. Carbs Evolution ADM announced capacity expansion in Marshall, MN, Segment Operating Profit to meet growing starch $500 $473 demand for food, beverage and BioSolutions $40
Slide 8: Nutrition
8 Nutrition Strong Revenue and OP Growth; Leading Proprietary business information of ADM. Continued Trajectory for 20% Full-Year Profit Win Rates Human Nutrition win rates Growth improved 10% from the Revenue Segment Operating Profit start of the year and continue to outpace the $2,500 $300 industr
Slide 9: Other Business Results and Corporate
9 Other Business Results and Corporate Keeping Our Proprietary business information of ADM. Promises, Living Our Values Achieved 100% traceability Other Business Corporate of direct and indirect soy suppliers in Argentina, Brazil and $20 $400 $(320) $(321) Paraguay $18 $300 $15 in millions $200 in m
Slide 10: Proprietary business information of ADM.
10 Proprietary business information of ADM.
Slide 11: Proprietary business information of ADM.
11 Proprietary business information of ADM.
Slide 12: Upcoming Investor Events
12 Upcoming Investor Events Proprietary business information of ADM. Seaport Annual Summer Investor Conference (Virtual) August 24 Barclays Consumer Staples Conference (Boston) September 7-8 JP Morgan All Stars Conference (London) September 21-22
Slide 13: Additional Facts and Information
Additional Facts and Information
Slide 14: Industry Environment
14 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q1 Call Spot Gross US$/MT US$/MT Crush Margins1 2021/2022 Crop Year 5-Year Prior 2022/2023 Crop Year Prior Current Current 5-Year Soybeans Average Year Average Year US $70-$80 $75-$85 Corn Europe $40-$50 $70-$90
Slide 15: ADM Additional Information
15 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 21 CY 22 Trailing 4-Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q2 22 Q2 21 Q2 22 Q2 21 Oilseeds 8,960 8,778 8,509 8,878 8,491 8,208 (1)(2) Adjus
Slide 16: Financial Appendix
16 Financial Appendix
Slide 17: Q2 2022 Financial Highlights
17 Q2 2022 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended June 30 2022 2021 Change Adjusted earnings per share (1) (2) $2.15 $1.33 $0.82 Total segment operating profit (unadjusted) (3) $1,840 1,145 $695 Adjusted segment
Slide 18: Q2 Adjusted Segment OP $1.8 Billion
18 Q2 Adjusted Segment OP $1.8 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 $1,160 $1,002 $1,413 $1,556 $1,849* 2,000 1,750 1,500 1,250 1,000 750 500 250 — (250) Ag Services and
Slide 19: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 19 Quarter Ended June 30 (Amounts in millions) 2022 2021 Change (1) Total Segment Operating Profit $ 1,840 $ 1,145 $ 695 Proprietary business information of ADM. Specified items: Gain on sale of assets — (22) 22 Impairment and restructuring charges 9 37
Slide 20: Balance Sheet Highlights
20 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) June 30, 2022 June 30, 2021 Cash (1) $906 $869 Net property, plant, and equipment 9,680 9,873 Operating working capital (2) 14,537 11,628 - Total inventories 14,485 11,446 Total debt 11,518 9,721 - CP outstand
Slide 21: Cash Flow Highlights
21 Cash Flow Highlights Proprietary business information of ADM. Six Months Ended June 30 (Amounts in millions) 2022 2021 Cash from operations before working capital changes $3,218 $2,202 Changes in working capital (3,893) 805 Purchases of property, plant, and equipment (500) (427) Net assets of bus
Slide 22: GAAP Statement of Earnings Summary
22 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended June 30 2022 2021 Change Revenues $27,284 $22,926 $4,358 Gross profit 2,100 1,463 637 Selling, general and administrative expenses 814 739 75 Asset impairment, exi
Slide 23: Adjusted Earnings Per Share (EPS)
23 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended June 30 2022 2021 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,519 $ 1,236 $ 2.18 $ 825 $ 712 $ 1.26 Adj
Slide 24: ROIC versus WACC
24 ROIC versus WACC Trailing 4Q Average Adjusted ROIC(1)(2) Q2 CY22 11.6 % LT ROIC Objective: 10% Proprietary business information of ADM. Annual WACC 5.50 % Trailing 4Q Average Adjusted EVA $2,081M Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 11.3 % 12% 11% 10% 9% 8% 7% 6% 5% 4% Q2 Q2 Q2 Q2
Slide 25: Return on Invested Capital
25 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Four Quarters Quarter Ended Ended Sep. 30, 2021 Dec. 31, 2021 Mar. 31, 2022 June 30, 2022 June 30, 2022 Net earnings attributable to ADM $ 526 $ 782 $ 1,054 $ 1,236 $ 3,598 Adjustme
Slide 26: Adjusted EBITDA
26 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended June 30, 2022 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Sep. 30, 2021 Dec. 31, 2021 Mar. 31, 2022 June 30, 2022 Jun
Slide 27: Notes: Non-GAAP Reconciliation
27 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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