Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q1 2023 Earnings Presentation
28 slides from Archer-daniels-midland's earnings presentation, Apr 25, 2023
Slide 1: First Quarter 2023 Earnings Conference Call
1 Proprietary business information of ADM. First Quarter 2023 Earnings Conference Call April 25, 2023
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: Q1 2023 Financial Highlights
3 Q1 2023 Financial Highlights Proprietary business information of ADM. Adjusted Earnings Adjusted Segment Trailing 4-Quarter 1,2 1,3 1 Per Share Operating Profit Adjusted ROIC Increased to Increased to Increased to $2.09 $1.7B 14.0% (1) (3) Non-GAAP measures - see notes on page 28 See segment opera
Slide 4: Proprietary business information of ADM.
4 Proprietary business information of ADM.
Slide 5: Driving Enduring Value Creation in 2023 and Beyond
5 Driving Enduring Value Creation in 2023 and Beyond Proprietary business information of ADM.
Slide 6: Ag Services & Oilseeds
6 Ag Services & Oilseeds Higher Results vs. Prior Year Supporting Proprietary business information of ADM. Food Security Diversified asset footprint Segment Operating Profit helped achieve record $1,500 results, including record export volumes in Brazil $1,250 $1,210 $1,008 $1,000 in millions $750 $
Slide 7: Carbohydrate Solutions
7 Carbohydrate Solutions Slightly Lower Results vs. Prior Year Sustainable Proprietary business information of ADM. Productivity 3 facilities received international Segment Operating Profit sustainability awards and Tallgrass pipeline $400 agreement was finalized $317 $273 $300 $200 in millions $100
Slide 8: Nutrition
8 Nutrition Lower Results On Constant Currency Basis1 Probiotics Proprietary business information of ADM. Human Nutrition Results In Line With Prior Year Expansion Opened unique and state-of-the-art facility Revenue Segment Operating Profit in Spain, increasing our global production capacity fivefol
Slide 9: Other Business Results and Corporate
9 Other Business Results and Corporate Proprietary business information of ADM. Other Business Corporate $125 $100 $97 $400 $(322) $(268) $300 $75 in millions $200 in millions $50 $42 $100 $25 $— $— Q1 2022 Q1 2023 $(100) Q1 2022 Q1 2023 Interest Unallocated Corporate Other Specified Items
Slide 10: Robust Financial Flexibility to Support Strategic Growth
10 Robust Financial Flexibility to Support Strategic Growth Proprietary business information of ADM. $2.0 Q1'23 Capital Expenditures $1.6 $1.5 $1.3 $0.3 billion Cash from Billions $1.0 Operations Before Q1'23 Dividends Working Capital1 $0.5 $0.2 billion $0.0 Q1 2022 Q1 2023 Q1'23 Share Repurchases $
Slide 11: Proprietary business information of ADM.
11 Proprietary business information of ADM.
Slide 12: Additional Facts and Information
Additional Facts and Information
Slide 13: Industry Environment
13 Industry Environment Proprietary business information of ADM. Farmer Selling2 Current Q4 Call Spot Gross US$/MT US$/MT 2022/2023 Crop Year Crush Margins1 5-Year Prior Current Year Soybeans Average US $55-$65 $90-$100 Corn Europe $45-$55 $65-$75 US 89% 84% 86% Brazil 13% 18% 24% Brazil $25-$45 $50
Slide 14: ADM Additional Information
14 ADM Additional Information Proprietary business information of ADM. Processed Volumes by Quarter (000s of metric tons) Adjusted EBITDA(1)(2) by Segment (in millions) Trailing 4-Quarters CY 22 CY 23 Q1 23 Q1 22 Q1 23 Q1 22 Q1 Q2 Q3 Q4 Q1 (1)(2) Adjusted EBITDA $ 1,762 $ 1,641 $ 6,951 $ 5,289 Oilse
Slide 15: ADM Additional Information: Nutrition
15 ADM Additional Information Proprietary business information of ADM. Nutrition Revenues (amounts in millions) Nutrition Operating Profit (amounts in millions) Growth vs. Growth vs. Q1 23 Q1 22 Q1 23 Q1 22 GAAP Revenues GAAP Operating Profit Nutrition $ 1,853 (3.7)% Nutrition $ 145 (23.3)% Human Nu
Slide 16: Financial Appendix
16 Financial Appendix
Slide 17: Q1 2023 Financial Highlights
17 Q1 2023 Financial Highlights Proprietary business information of ADM. Quarter Ended March 31 (Amounts in millions except per share data and percentages) 2023 2022 Change Adjusted earnings per share (1) (2) $2.09 $1.90 $0.19 Total segment operating profit (unadjusted) (3) $1,719 1,539 $180 Adjuste
Slide 18: Q1 Adjusted Segment OP $1.7 Billion
18 Q1 Adjusted Segment OP $1.7 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $1,556 $1,849 $1,579 $1,665 $1,725* 2,000 1,750 1,500 1,250 1,000 750 500 250 — Ag Services and Oilse
Slide 19: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 19 Quarter Ended Mar. 31 (Amounts in millions) 2023 2022 Change Proprietary business information of ADM. (1) Total Segment Operating Profit $ 1,719 $ 1,539 $ 180 Specified items: Gain on sale of assets (1) (1) — Impairment, restructuring, and settlement
Slide 20: Balance Sheet Highlights
20 Balance Sheet Highlights Proprietary business information of ADM. March 31 (Amounts in millions) 2023 2022 (1) Cash $ 899 $ 1,079 Net property, plant, and equipment 10,071 9,794 Operating working capital (2) 13,457 15,171 - Total inventories 14,771 17,290 Total debt 10,506 13,072 - CP outstanding
Slide 21: Cash Flow Highlights
21 Cash Flow Highlights Proprietary business information of ADM. Three Months Ended Mar. 31 (Amounts in millions) 2023 2022 Cash from operations before working capital changes $ 1,310 $ 1,616 Changes in working capital (2,920) (2,822) Purchases of property, plant, and equipment (327) (217) Sub-total
Slide 22: GAAP Statement of Earnings Summary
22 GAAP Statement of Earnings Summary Proprietary business information of ADM. Quarter Ended Mar. 31 (Amounts in millions except per share data) 2023 2022 Change Revenues $ 24,072 $ 23,650 $ 422 Gross profit 2,080 1,897 183 Selling, general and administrative expenses 881 829 52 Asset impairment, ex
Slide 23: Adjusted Earnings Per Share (EPS)
23 Adjusted Earnings Per Share (EPS) Proprietary business information of ADM. Quarter Ended Mar. 31 2023 2022 (Amounts in millions except per share data) Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,397 $ 1,170 $ 2.12 $ 1,271 $ 1,054 $ 1.86
Slide 24: ROIC versus WACC
24 ROIC versus WACC Trailing 4Q Average Adjusted ROIC(1)(2) Q1 CY23 14.0 % LT ROIC Objective: 10% Proprietary business information of ADM. Annual WACC 8.00 % Trailing 4Q Average Adjusted EVA $2.1B Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 13.9 % 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% Q1 Q1 Q1
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 Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Mar. 31, 2023 Net earnings attributable to ADM $ 1,236 $ 1,031 $ 1,019 $ 1,170 $ 4,456 Adju
Slide 26: Adjusted EBITDA
26 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended March 31, 2023 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Ma
Slide 27: Adjusted Net Debt to Adjusted EBITDA
27 Adjusted Net Debt to Adjusted EBITDA Proprietary business information of ADM. Adjusted Net Debt March 31 (Amounts in millions) 2023 2022 Short-term debt $ 1,809 $ 3,777 Current maturities of long-term debt 952 543 Long-term debt 7,745 8,752 Cash and cash equivalents (899) (1,079) Net Debt $ 9,607
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
Archer-Daniels-Midland Company — Q1 2023 Earnings Presentation on 6ix