Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q3 2022 Earnings Presentation
28 slides from Archer-daniels-midland's earnings presentation, Oct 25, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
1 Proprietary business information of ADM. Third Quarter 2022 Earnings Conference Call October 25, 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: Financial Highlights
3 Financial Highlights Continued Strong Returns and Profit Growth in Q3 Proprietary business information of ADM.
Slide 4: Investing in Growth Engines Across All Three Businesses
4 Investing in Growth Engines Across All Three Businesses Proprietary business information of ADM.
Slide 5: Investing for Cutting-Edge Productivity
5 Investing for Cutting-Edge Productivity Proprietary business information of ADM.
Slide 6: Regen Ag: Leading Change, Driving Value
6 Regen Ag: Leading Change, Driving Value Proprietary business information of ADM.
Slide 7: Ag Services & Oilseeds
7 Ag Services & Oilseeds Substantially Higher Results Technology Proprietary business information of ADM. Booster Agreement with FBN to Segment Operating Profit support North American $1,250 regenerative agriculture using their Gradable $1,075 digital platform. $1,000 $750 in millions $618 $500 $250
Slide 8: Carbohydrate Solutions
8 Carbohydrate Solutions Significantly Higher Profits vs Prior Year 29% Proprietary business information of ADM. The BioSolutions platform continued its strong upward trajectory, Segment Operating Profit with 29% year-over-year $400 revenue growth YTD. $309 $300 $213 $200 in millions $100 $— $(100)
Slide 9: Nutrition
9 Nutrition Industry-Leading Sales Growth of 16% On Proprietary business information of ADM. Constant Currency Basis1 M&A Delivering Portfolio of acquisitions from 2021 continues to Revenue Segment Operating Profit deliver OP ahead of acquisition models. $2,500 $200 $188 $176 $2,000 $1,965 $1,697 $1
Slide 10: Other Business Results and Corporate
10 Other Business Results and Corporate Financing Proprietary business information of ADM. Sustainable Ag ADM worked with Standard Chartered to Other Business Corporate support $500M in letters of credit for sustainable $400 $(347) $(329) products. $20 $18 $15 in millions $10 in millions $5 $0 $(5)
Slide 11: Enhanced Financial Flexibility with Significantly Stronger Cash Flows
11 Enhanced Financial Flexibility with Significantly Stronger Cash Flows Proprietary business information of ADM.
Slide 12: Proprietary business information of ADM.
12 Proprietary business information of ADM.
Slide 13: Additional Facts and Information
Additional Facts and Information
Slide 14: Industry Environment
14 Industry Environment Farmer Selling2 Proprietary business information of ADM. Current Q2 Call Spot Gross US$/MT US$/MT 2022/2023 Crop Year Crush Margins1 5-Year Prior Current Year Soybeans Average US $90-$100 $70-$80 Corn Europe $40-$70 $40-$50 US 37% 38% 38% Brazil n/a n/a n/a Brazil $20-$40 $25
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) Trailing 4-Quarters CY 21 CY 22 Q3 22 Q3 21 Q3 22 Q3 21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (1)(2) Adjusted EBITDA $ 1,639 $ 1,034 $ 6,553 $ 4,631
Slide 16: ADM Additional Information: Nutrition
16 ADM Additional Information Proprietary business information of ADM. Nutrition Revenues (amounts in millions) Nutrition Operating Profit (amounts in millions) Growth vs. Growth vs. Growth vs. Growth vs. Q3 22 Q3 21 YTD FY22 YTD FY21 Q3 22 Q3 21 YTD FY22 YTD FY21 GAAP Revenues GAAP Operating Profit
Slide 17: Financial Appendix
17 Financial Appendix
Slide 18: Q3 2022 Financial Highlights
18 Q3 2022 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended September 30 2022 2021 Change Adjusted earnings per share (1) (2) $1.86 $0.97 $0.89 Total segment operating profit (unadjusted) (3) $1,559 1,000 $559 Adjusted se
Slide 19: Q3 Adjusted Segment OP $1.6 Billion
19 Q3 Adjusted Segment OP $1.6 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $1,002 $1,413 $1,556 $1,849 $1,579* 2,000 1,750 1,500 1,250 1,000 750 500 250 0 (250) Ag Services and
Slide 20: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 20 Quarter Ended Sept. 30 (Amounts in millions) 2022 2021 Change (1) Total Segment Operating Profit $ 1,559 $ 1,000 $ 559 Proprietary business information of ADM. Specified items: Gain on sale of assets (29) — (29) Impairment and restructuring charges 4
Slide 21: Balance Sheet Highlights
21 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Sep. 30, 2022 Sep. 30, 2021 Cash (1) $1,099 $1,083 Net property, plant, and equipment 9,605 9,848 Operating working capital (2) 11,603 10,396 - Total inventories 13,282 11,169 Total debt 8,740 8,934 - CP outst
Slide 22: Cash Flow Highlights
22 Cash Flow Highlights Proprietary business information of ADM. Nine Months Ended Sept. 30 (Amounts in millions) 2022 2021 Cash from operations before working capital changes $4,657 $3,090 Changes in working capital (1,309) 2,763 Purchases of property, plant, and equipment (841) (714) Net assets of
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 Sept. 30 2022 2021 Change Revenues $24,683 $20,340 $4,343 Gross profit 1,811 1,326 485 Selling, general and administrative expenses 818 720 98 Asset impairment, ex
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 Sept. 30 2022 2021 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 1,230 $ 1,031 $ 1.83 $ 653 $ 526 $ 0.93 Ad
Slide 25: ROIC versus WACC
25 ROIC versus WACC Trailing 4Q Average Adjusted ROIC(1)(2) Q3 CY22 13.0 % LT ROIC Objective: 10% Proprietary business information of ADM. Annual WACC 5.50 % Trailing 4Q Average Adjusted EVA $2,583M Long-Term WACC 7.0 % Trailing 4Q Average ROIC (1)(3) 12.7 % 13% 12% 11% 10% 9% 8% 7% 6% 5% Q3 Q3 Q3 Q
Slide 26: Return on Invested Capital
26 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Four Quarters Quarter Ended Ended Dec. 31, 2021 Mar. 31, 2022 Mar. 31, 2022 Sep. 30, 2022 Sep. 30, 2022 Net earnings attributable to ADM $ 782 $ 1,054 $ 1,236 $ 1,031 $ 4,103 Adjust
Slide 27: Adjusted EBITDA
27 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended September 30, 2022 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Four Quarters Quarter Ended Ended Dec. 31, 2021 Mar. 31, 2022 Mar. 31, 2022 Sep. 30, 202
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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