Archer-daniels-midland Company · NYSE:ADM
Archer-daniels-midland — Q4 2020 Earnings Presentation
26 slides from Archer-daniels-midland's earnings presentation, Jan 26, 2021
Slide 1: Fourth Quarter 2020 Earnings Conference Call
1 Proprietary business information of ADM. Fourth Quarter 2020 Earnings Conference Call January 26, 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: A Year of Accomplishments
3 A Year of Accomplishments Proprietary business information of ADM. • Delivered on our purpose by • COEs, 1ADM driving • Neovia synergies, expanded serving customers and improvements plant-based protein providing nutrition amid • Reducing GHG emissions, capabilities, new Nutrition unprecedented ene
Slide 4: Q4 2020 Financial Highlights
4 Q4 2020 Financial Highlights (in millions except per share data and percentages) Proprietary business information of ADM. Quarter Ended Dec. 31 2020 2019 Change Adjusted earnings per share (1) (2) $1.21 $1.42 ($0.21) Total segment operating profit (unadjusted) (3) $1,139 $934 $205 Adjusted segment
Slide 5: Q4 Other Business and Corporate Results
5 Q4 Other Business and Corporate Results (In millions) Proprietary business information of ADM. Other Business • Other Business results lower on Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 ADM Investor Services earnings and $13 $11 $38 $20 $(17) intra-company insurance settlements Corporate Charges Q4
Slide 6: AS&O: Strong Execution Delivers Record Q4
6 AS&O: Strong Execution Delivers Record Q4 Proprietary business information of ADM. Adjusted segment operating profit (in millions) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 OP +9% $739 $422 $413 $436 $834 Outstanding full-year results of $2.1B; multiple production records, including global crus
Slide 7: Carbohydrate Solutions: Another Quarter of Good Execution, Higher Results
Carbohydrate Solutions: Another Quarter of 7 Good Execution, Higher Results Proprietary business information of ADM. Adjusted segment operating profit (in millions) 2020 OP +11% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Full-year results of $717M $174 $68 $195 $246 $208 demonstrate excellent execution
Slide 8: Nutrition: 24% YOY Growth in Q4
8 Nutrition: 24% YOY Growth in Q4 Proprietary business information of ADM. Adjusted segment operating profit (in millions) 2020 OP +37% Full-year results of Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 $574M, 5% increase in $102 $142 $158 $147 $127 revenue reflect harvesting investments, leadership in co
Slide 9: Expect to Grow Operating Profit and EPS in 2021
9 Expect to Grow Operating Profit and EPS in 2021 Proprietary business information of ADM.
Slide 10: Upcoming Investor Events
10 Upcoming Investor Events Proprietary business information of ADM. Baird Sustainability Conference 2021 February 23 Bank of America 2021 Global Agriculture and Materials Conference March 3-4 Exane BNP Paribas Consumer Ingredient Conference March 16-17
Slide 11: Additional Facts and Explanations
Additional Facts and Explanations
Slide 12: Industry Environment
12 Industry Environment Proprietary business information of ADM. Spot Gross Current Q3 Call Farmer Selling2 Crush Margins1 US$/MT US$/MT 2020/2021 Crop Year 5-Year Prior Soybeans Current Average Year US ~$30 ~$40 Corn Europe $50-$60 $30-$40 US 74% 67% 66% Exp: $40-$50 Exp: $0-$5 Brazil 25% 22% 14% B
Slide 13: ADM Additional Information
13 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 19 CY 20 Trailing 4-Quarters Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 20 Q4 19 Q4 20 Q4 19 Oilseeds 9,167 8,773 9,062 9,269 9,163 9,103 8,970
Slide 14: Financial Appendix
14 Financial Appendix
Slide 15: Q4 Adjusted Segment OP $1.15 Billion
15 Q4 Adjusted Segment OP $1.15 Billion Proprietary business information of ADM. Adjusted segment operating profit (1,2) (in millions) Excludes specified items Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 $1,028 $643 $804 $849 $1,152* Ag Services and Oilseeds Carbohydrate Solutions Nutrition Other Busine
Slide 16: Segment Operating Profit and Corporate Results
Segment Operating Profit and Corporate Results 16 Quarter Ended Dec. 31 Year Ended Dec. 31 (Amounts in millions) 2020 2019 Change 2020 2019 Change (1) Total Segment Operating Profit $ 1,139 $ 934 $ 205 $ 3,455 $ 2,948 $ 507 Proprietary business information of ADM. Specified items: (Gains) losses on
Slide 17: Balance Sheet Highlights
17 Balance Sheet Highlights Proprietary business information of ADM. (Amounts in millions) Dec. 31, 2020 Dec. 31, 2019 Cash (1) $667 $852 Net property, plant, and equipment 9,951 10,106 Operating working capital (2) 10,481 7,970 - Total inventories 11,713 9,170 Total debt 9,929 8,881 - CP outstandin
Slide 18: Cash Flow Highlights
18 Cash Flow Highlights Proprietary business information of ADM. Years Ended Dec. 31 (Amounts in millions) 2020 2019 Cash from operations before working capital changes $3,129 $2,286 Changes in working capital (1) (912) (57) Purchases of property, plant, and equipment (823) (828) Net assets of busin
Slide 19: GAAP Statement of Earnings Summary
19 GAAP Statement of Earnings Summary Proprietary business information of ADM. (Amounts in millions except per share data) Quarter Ended Dec. 31 2020 2019 Change Revenues $17,978 $16,329 $1,649 Gross profit 1,352 1,169 183 Selling, general and administrative expenses 749 654 95 Asset impairment, exi
Slide 20: Adjusted Earnings Per Share (EPS)
20 Adjusted Earnings Per Share (EPS) (Amounts in millions except per share data) Proprietary business information of ADM. Quarter Ended Dec. 31 2020 2019 Pre-tax After-tax Per share Pre-tax After-tax Per share Earnings and EPS (fully diluted) as reported $ 756 $ 687 $ 1.22 $ 496 $ 504 $ 0.90 Adjustm
Slide 21: ROIC versus WACC
21 ROIC versus WACC Q4 CY20 LT ROIC Objective: 10% Proprietary business information of ADM. (1)(2) Trailing 4Q Average Adjusted ROIC 7.7 % Annual WACC 5.75 % Trailing 4Q Average Adjusted EVA $573M Long-Term WACC 7.0 % 11% Trailing 4Q Average ROIC (1)(3) 6.7 % 10% 9% 8% 7% 6% 5% 4% Q4 Q4 Q4 Q4 Q4 CY1
Slide 22: Return on Invested Capital
22 Return on Invested Capital Proprietary business information of ADM. Adjusted ROIC Earnings(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Mar. 31, 2020 June 30, 2020 Sep. 30, 2020 Dec. 31, 2020 Dec. 31, 2020 Net earnings attributable to ADM $ 391 $ 469 $ 225 $ 687 $ 1,772 Adjustment
Slide 23: Adjusted EBITDA, Four Quarters Ended December 31, 2020
23 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended December 31, 2020 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Mar. 31, 2020 June 30, 2020 Sep. 30, 2020 Dec. 31, 20
Slide 24: Adjusted EBITDA, Four Quarters Ended December 31, 2019
24 Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended December 31, 2019 Proprietary business information of ADM. Adjusted EBITDA(1) (Amounts in millions) Fourth Quarters Quarter Ended Ended Mar. 31, 2019 Jun. 30, 2019 Sep. 30, 2019 Dec. 31, 20
Slide 25: 2019 Segment OP and Adjusted Segment OP Comparatives
25 2019 Segment OP and Adjusted Segment OP(1,2) Comparatives with VCP in Carbohydrate Solutions (in millions) Proprietary business information of ADM. Qtr. Ended Qtr. Ended Qtr. Ended Qtr. Ended Year Ended Mar. 31, 2019 Jun. 30, 2019 Sep. 30, 2019 Dec. 31, 2019 Dec. 31, 2019 As As As As As As As As
Slide 26: Notes: Non-GAAP Reconciliation
26 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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