Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q1 2024 Earnings Presentation
25 slides from Archer-daniels-midland's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Earnings Conference Call
Proprietary business information of ADM. First Quarter 2024 Earnings Conference Call April 30, 2024 Proprietary business information of ADM.
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Proprietary business information of ADM. This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other tha
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 should
Slide 4: Financial Highlights
PRIVILEGED AND CONFIDENTIAL |DRAFT Financial Highlights Proprietary business information of ADM. Q1 2024 (Unless otherwise stated) Adjusted Earnings Adjusted Segment TRAILING 4-QUARTER Per Share1,2 Operating Profit1,3 Adjusted ROIC1 $1.46 $1.3B 11.2% Reported Earnings Cash Flow from Per Share Return
Slide 5: Making Progress on Our Value Creation Priorities for the Year
Making Progress on Our Value Creation Priorities for the Year Q1 2024 Accomplishments Proprietary business information of ADM. Strategic Initiatives Operational Changes Enhanced Return of Cash to • Delivered 10% volume growth in • Debottlenecked EMEA demand fulfillment Shareholders BioSolutions chal
Slide 6: Total Consolidated Operating Profit and Earnings Per Share
Total Consolidated Operating Profit and Earnings Per Share Q1 2024 versus Prior Year Quarter Proprietary business information of ADM. Earnings declined due to lower margins partially offset by improvements in processed volumes and costs Adjusted Segment Operating Profit 1,2 Adjusted Earnings Per Sha
Slide 7: Ag Services & Oilseeds Operating Profit
Ag Services & Oilseeds Operating Profit Proprietary business information of ADM. Q1 2024 versus Prior Year Quarter Higher processed volumes and improved manufacturing costs partially supported earnings as margins declined Segment Operating Profit (in millions of dollars) • Stabilization of trade flo
Slide 8: Carbohydrate Solutions Operating Profit
Carbohydrate Solutions Operating Profit Q1 2024 versus Prior Year Quarter Proprietary business information of ADM. Lower manufacturing costs partially offset lower domestic ethanol margins and lower EMEA margins Segment Operating Profit (in millions of dollars) • In S&S, lower domestic ethanol margi
Slide 9: Nutrition Revenue
Nutrition Revenue Q1 2024 versus Prior Year Quarter Proprietary business information of ADM. Nutrition revenue declined due to headwinds in Specialty Ingredients and lower pricing in Animal Nutrition Segment Revenue (in millions of dollars) • Overall, Nutrition revenue declined ~1% • M&A contributio
Slide 10: Nutrition Operating Profit
Nutrition Operating Profit Q1 2024 versus Prior Year Quarter Proprietary business information of ADM. Headwinds from Specialty Ingredients business led to significant decline in operating profit Segment Operating Profit (in millions of dollars) • Flavors operating profit was down slightly relative t
Slide 11: Other Business Results and Corporate
Other Business Results and Corporate Proprietary business information of ADM. Q1 2024 versus Prior Year Quarter Other Business Segment Operating Profit Corporate and Other Costs (in millions of dollars) (in millions of dollars) • Increased spend related to 1ADM to support digital transformation and
Slide 12: Cash Flow from Operations and Cash Deployment
Cash Flow from Operations and Cash Deployment Proprietary business information of ADM. Q1 2024 versus Prior Year Continued strong cash flow creates opportunity to return excess cash to shareholders Cash from Operations Before Working Capital 1 Cash Deployment (in billions of dollars) (in billions of
Slide 13: Consolidated Outlook
Consolidated Outlook Proprietary business information of ADM. Metric FY 2023 FY 2024 Guidance1 Q1 2024 Adjusted EPS1,3 $6.98 $5.25 – $6.25 $1.46 Corporate Costs* $1.6 billion ~$1.8 billion $426 million Corporate Net Interest Expense $431 million ~$525 million $110 million Capital Expenditures $1.5 b
Slide 14: Segment Outlook
Segment Outlook Q2 2024 and FY 2024 Proprietary business information of ADM. Operating Profit Q2 2024 FY 2024 Full Year Planning Assumptions • Anticipate easing global supply environment with another year of strong South American crops • Expect global soybean crush margin in the range of ~$35/metric
Slide 15: Proprietary business information of ADM.
Proprietary business information of ADM. | 15
Slide 16: Appendix
16 Appendix
Slide 17: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results Proprietary business information of ADM. Quarter Ended M ar. 31 (Amounts in millions) 2024 2023 Change Total Segment Operating Profit $ 1,311 $ 1,719 $ (408) Specified items: (Gain) loss on sale of assets — (1) 1 Impairment and restructuring charges 6 7
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights Proprietary business information of ADM. M arch 31 (Amounts in millions) 2024 2023 Cash (1) $ 830 $ 899 Net property, plant, and equipment 10,596 10,071 Operating working capital (2) 10,181 13,457 - Total inventories 11,634 14,771 Total debt 9,980 10,506 - CP outstanding 884
Slide 19: Cash Flow Highlights
Cash Flow Highlights Proprietary business information of ADM. Three M onths Ended M ar. 31 (Amounts in millions) 2024 2023 Cash from operations before working capital changes $ 882 $ 1,310 Changes in working capital (182) (2,920) Purchases of property, plant, and equipment (328) (327) Net assets of
Slide 20: GAAP Statement of Earnings Summary
GAAP Statement of Earnings Summary Proprietary business information of ADM. Quarter Ended M ar. 31 (Amounts in millions except per share data) 2024 2023 Change Revenues $ 21,847 $ 24,072 $ (2,225) Gross profit 1,659 2,080 (421) Selling, general and administrative expenses 951 881 70 Asset impairment
Slide 21: Reconciliation of Adjusted Earnings Per Share (EPS)
Reconciliation of Adjusted Earnings Per Share (EPS) Proprietary business information of ADM. Quarter Ended Mar. 31 2024 2023 In millions Per share In millions Per share Net earnings and EPS (fully diluted) as reported $ 729 $ 1.42 $ 1,170 $ 2.12 Adjustm ents (Gain) loss on sales of assets — — (1) —
Slide 22: ROIC versus WACC
ROIC versus WACC Q1 CY24 Proprietary business information of ADM. Trailing 4Q Average Adjusted ROIC(1)(2) 11.2 % LT ROIC Objective: 10% Annual WACC 8.00 % Trailing 4Q Average Adjusted EVA $1.1B Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 10.2 % 1. Non-GAAP measure - see notes on page 3 2. A
Slide 23: Reconciliation of Return on Invested Capital
Reconciliation of Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings (1) (Amounts in millions) Four Quarters Quarter Ended Ended Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023 M ar. 31, 2024 M ar. 31, 2024 Net earnings attributable to ADM $ 927 $ 821 $ 565 $ 729 $
Slide 24: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended March 31, 2024 Proprietary business information of ADM. Adjusted EBITDA (1) (Amounts in millions) Four Quarters Quarter Ended Ended Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023
Slide 25: Reconciliation of Adjusted Net Debt to Total Debt and Adjusted EBITDA
Reconciliation of Adjusted Net Debt to Total Debt and to Adjusted EBITDA Proprietary business information of ADM. Adjusted Net Debt M arch 31 (Amounts in millions) 2024 2023 Short-term debt $ 1,734 $ 1,809 Current maturities of long-term debt 1 952 Long-term debt 8,245 7,745 Total Debt 9,980 10,506
Archer-Daniels-Midland Company — Q1 2024 Earnings Presentation on 6ix