Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q1 2021 Earnings Presentation
28 slides from Archer-daniels-midland's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
1 Proprietary business information of ADM. First Quarter 2021 Earnings Conference Call April 27, 2021
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: Exceptionally Strong Q1 Results
3 Exceptionally Strong Q1 Results Proprietary business information of ADM. Adjusted Earnings Per Share1,2 Adjusted Segment Operating Profit1,3 $1.50 $1.39 $1,500 $1,199 $1.00 $1,000 in millions $0.64 $643 $0.50 $500 $0.00 $0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Trailing 4-Quarters Adjusted ROIC1 Trailing
Slide 4: Positive Demand Trends for Broad Array of Products and Solutions
4 Positive Demand Trends for Broad Array of Products and Solutions Proprietary business information of ADM. (1) US Census; ADM estimates (2) Rabobank March 2021 Global Foodservice Outlook (3) Grand View Research, Inc., Protein Ingredients Market Analysis, 2020
Slide 5: Proprietary business information of ADM.
5 Proprietary business information of ADM.
Slide 6: Innovating Across the Value Chain
6 Proprietary business information of ADM. Innovating Across the Value Chain
Slide 7: Supporting Sustainability
7 Supporting Sustainability ADM's New Policy to Protect Forests, Biodiversity and Communities Proprietary business information of ADM.
Slide 8: Ag Services & Oilseeds
8 Ag Services & Oilseeds Strong Demand, Outstanding Execution, Record Q1 More Than Proprietary business information of ADM. 1 Billion gallons of new US Segment Operating Profit renewable green diesel $1,000 capacity coming online in 2021 — a 70% increase vs 2020 $800 $777 $600 in millions $422 $400
Slide 9: Carbohydrate Solutions
9 Carbohydrate Solutions Significant Growth, Improving Environment Deep Freeze, Proprietary business information of ADM. Deep Capabilities Carbohydrate Solutions quickly flexed production Segment Operating Profit across its broad footprint to serve customers during $300 February's extreme $259 weath
Slide 10: Nutrition
10 Nutrition Strong Demand Across Key Market Segments, Award-Winning Proprietary business information of ADM. Solid Revenue and OP Growth Innovation ADM's BPL1, a ground- breaking probiotic targeting Revenue Segment Operating Profit metabolic health, was honored with a 2021 $2,000 $200 BIG Innovatio
Slide 11: Other Business Results and Corporate
11 Other Business Results and Corporate Proprietary business information of ADM. Other Business Corporate $400 $12 $11 $(224) $(281) $300 $9 $9 in millions $200 in millions $100 $6 $0 $3 -$100 Q1 2020 Q1 2021 $0 Interest Q1 2020 Q1 2021 Unallocated Corporate Other Charges Specified Items
Slide 12: The Path to Sustainable Growth
12 Proprietary business information of ADM. The Path to Sustainable Growth
Slide 13: Upcoming Investor Events
13 Upcoming Investor Events Proprietary business information of ADM. Bank of America Plant-Based Food Conference May 11 BMO Farm to Market May 19-20 DbAccess Global Consumer Conference June 7-8 Stifel Virtual Cross Sector Conference June 9
Slide 14: Additional Facts and Explanations
Additional Facts and Explanations
Slide 15: Industry Environment
15 Industry Environment Proprietary business information of ADM. Spot Gross Current Q4 Call Farmer Selling2 2020/2021 Crop Year Crush Margins1 US$/MT US$/MT 5-Year Prior Soybeans Current Average Year US $40-45 ~$30 Corn Europe $30-$40 $50-$60 US 85% 81% 80% Brazil 35% 33% 32% Exp: $15-$20 Exp: $40-$
Slide 16: ADM Additional Information
16 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 20 CY 21 Trailing 4-Quarters Q1 Q2 Q3 Q4 Q1 Q1 21 Q1 20 Q1 21 Q1 20 Oilseeds 9,163 9,103 8,970 9,329 8,960 (1)(2) Adjusted EBITD
Slide 17: Financial Appendix
17 Financial Appendix
Slide 18: Q1 2021 Financial Highlights
18 Q1 2021 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended Mar. 31 2021 2020 Change Adjusted earnings per share (1) (2) $1.39 $0.64 $0.75 Total segment operating profit (unadjusted) (3) $1,105 $599 $506 Adjusted segment
Slide 19: Q1 Adjusted Segment OP $1.2 Billion
19 Q1 Adjusted Segment OP $1.2 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 $643 $804 $849 $1,152 $1,199* Ag Services and Oilseeds Carbohydrate Solutions Nutrition Other Busines
Slide 20: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 20 Quarter Ended Mar. 31 (Amounts in millions) 2021 2020 Change (1) Total Segment Operating Profit $ 1,105 $ 599 $ 506 Proprietary business information of ADM. Impairment, restructuring, and settlement charges 94 44 50 (1)(2) Adjusted Segment Operating
Slide 21: Balance Sheet Highlights
21 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Mar. 31, 2021 Mar. 31, 2020 Cash (1) $694 $4,734 Net property, plant, and equipment 9,799 9,883 Operating working capital (2) 12,841 7,985 - Total inventories 12,764 8,830 Total debt 11,208 12,503 - CP outstan
Slide 22: Cash Flow Highlights
22 Cash Flow Highlights Proprietary business information of ADM. Three Months Ended Mar. 31 (Amounts in millions) 2021 2020 Cash from operations before working capital changes $1,202 $839 Changes in working capital (1) (904) 551 Purchases of property, plant, and equipment (174) (194) Net assets of b
Slide 23: GAAP Statement of Earnings Summary
23 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended Mar. 31 2021 2020 Change Revenues $18,893 $14,970 $3,923 Gross profit 1,548 951 597 Selling, general and administrative expenses 749 664 85 Asset impairment, exit,
Slide 24: Adjusted Earnings Per Share (EPS)
24 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended Mar. 31 2021 2020 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 824 $ 689 $ 1.22 $ 375 $ 391 $ 0.69 Adjustm
Slide 25: ROIC versus WACC
25 ROIC versus WACC Q1 CY21 LT ROIC Objective: 10% Proprietary business information of ADM. (1)(2) Trailing 4Q Average Adjusted ROIC 9.0 % Annual WACC 5.25 % Trailing 4Q Average Adjusted EVA $1,109M Long-Term WACC 7.0 % 11% Trailing 4Q Average ROIC (1)(3) 7.9 % 10% 9% 8% 7% 6% 5% 4% Q1 Q1 Q1 Q1 Q1 C
Slide 26: Return on Invested Capital
26 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended June 30, 2020 Sep. 30, 2020 Dec. 31, 2020 Mar. 31, 2021 Mar. 31, 2021 Net earnings attributable to ADM $ 469 $ 225 $ 687 $ 689 $ 2,070 Adjustment
Slide 27: Adjusted EBITDA
27 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended March 31, 2021 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended June 30, 2020 Sep. 30, 2020 Dec. 31, 2020 Mar. 31, 2021
Slide 28: Notes: Non-GAAP Reconciliation
28 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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