Third Quarter 2020 · 2020. 10. 29. · 4. Q3 2020 Financial Highlights (in millions except per share data and percentages) Quarter Ended Sept. 30 2020 2019 Change Adjusted earnings

Third Quarter 2020 Earnings Conference Call October30,2020

2Proprietarybusinessinform

ationofADM.

Safe Harbor Statement

Someofourcommentsandmaterialsinthispresentationconstituteforward-lookingstatementsthatreflectmanagement’scurrentviewsandestimatesoffutureeconomiccircumstances,industryconditions,Companyperformanceandfinancialresults.

Thesestatementsandmaterialsarebasedonmanyassumptionsandfactorsthataresubjecttoriskanduncertainties.ADMhasprovidedadditionalinformationinitsreportsonfilewiththeSECconcerningassumptionsandfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseinthispresentation,andyoushouldcarefullyreviewtheassumptionsandfactorsinourSECreports.

Totheextentpermittedunderapplicablelaw,ADMassumesnoobligationtoupdateanyforward-lookingstatementsasaresultofnewinformationorfutureevents.


ationofADM.

Q3 Accomplishments

• 1ADMdrivingefficiencies,growth,decision-makingcapabilities

• COEsdelivering:strongDecaturcorncomplexperformance,enhancedNutritionoperations

• $100MinAS&Ocapitalreductioninitiatives

• Operationalexcellenceinitiativesstrengthenedbusinesscontinuity;continuedservingcustomersdespitehurricanes,derechostorm

• AlgarAgroOPtripledYOY• Productionexpansionforhigh-qualityUSP-gradealcoholforhandsanitizer

• Announcementofnew,state-of-the-artprobioticsfacility

• FermentationagreementwithSpiberInc.toproducesustainablepolymers

• Totalof$1.2Binrun-ratebenefits;nowontracktoreach$1.3Bbyendofyear


ationofADM.

Q3 2020 Financial Highlights (inmillionsexceptpersharedataandpercentages)

QuarterEndedSept.30

2020 2019 Change

Adjustedearningspershare(1)(2) $0.89 $0.77 $0.12

Totalsegmentoperatingprofit(unadjusted)(3) $904 $758 $146

Adjustedsegmentoperatingprofit(1)(3) $849 $764 $85

Trailing4QaverageadjustedROIC(1) 8.3% 6.5% 180bps

Trailing4QadjustedEBITDA(1)(4) $3,656 $3,265 $391

AnnualadjustedEVA(1) $740 $(71) $811

Quarterlyeffectivetaxrate (13)% 19%

NineMonthsEndedSept.30

2020 2019 Change

Cashfromoperationsbeforeworkingcapitalchanges $2,295 $1,700 $595

Purchasesofproperty,plant,andequipment $558 $566 $(8)

Returnofcapitaltoshareholders $724 $742 ($18)

Increase(decrease)incash,cashequivalents,restrictedcash,andrestrictedcashequivalents $1,269 $(818) $2,087

Netdebttototalcapitalratio(asofSeptember30) 27% 30%

(1)Non-GAAPmeasures-seenotesonpage30(2)Seeearningspershare,themostdirectlycomparableGAAPmeasure,onpage24(3)Seesegmentoperatingprofitasreportedonpage20(4)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpages27and28


ationofADM.

Q3 Other Business and Corporate Results

OtherBusiness

Q32019 Q42019 Q12020 Q22020 Q32020$(255) $(438) $(224) $(261) $(704)

• OtherBusinessresultsloweronADMInvestorServicesearningsandcaptiveinsuranceunderwritinglosses,includinghighwaterclaimwithAgServices&Oilseeds

• UnallocatedCorporateupduetoperformance-basedcompaccruals,whichwerelowinprior-yearperiod

• Otherspecifieditemshigheron~$400millionofearlydebtretirementcharges

Unallocatedcorporate Interestexpense OtherchargesLIFO Otherspecifieditems

Q32019 Q42019 Q12020 Q22020 Q32020$47 $13 $11 $38 $20

CorporateCharges

(Inmillions)


ationofADM.

AgServices Crushing RefinedProductsandOther Wilmar

Q32019 Q42019 Q12020 Q22020 Q32020

$417 $739 $422 $413 $436

AS&O: Great Execution in Good Environment

• AgServices:extremelygoodexecution,includingNAandGlobalTrade;$80Minnegativetimingimpacts

• Crushing:greatexecutioninsoliddemandenvironment;$75Minnegativetimingimpacts

• RPOuponimprovedbiodieselmargins

• EquityearningsfromWilmarsubstantiallyhigherYOY

Adjustedsegmentoperatingprofit(inmillions)BreakingRecords

RecordYTDvolumesinsoycrushandglobal

trade


ationofADM.

Q32019 Q42019 Q12020 Q22020 Q32020

$182 $174 $68 $195 $246

VantageCornProcessors(VCP) StarchesandSweeteners

Carbohydrate Solutions: Good Execution in Improving Environment

Adjustedsegmentoperatingprofit(inmillions)

• S&SsubsegmentsubstantiallyhigheronstrongriskmanagementandimprovednetcorncostsinabalancedethanolindustryS&Denvironment

• VCPup;goodexecutiononwetmillfuelethanoldistributionandhigheryear-over-yearindustrymargins,managementoffixedcostsofidleddrymills.Increasedvolumesandmarginsofindustrialalcoholforhandsanitizer

ExpandingthePortfolio

LaunchedProlite®MeatTEXtexturedandnon-texturedwheat

proteins


ationofADM.

Q32019 Q42019 Q12020 Q22020 Q32020

$118 $102 $142 $158 $147

HumanNutrition AnimalNutrition

Nutrition: 5th Consecutive Quarter of 20+% YOY Growth

Adjustedsegmentoperatingprofit(inmillions)

• HumanNutritionsubstantiallyhigher;strengthacrossthebusinessportfolio,includingflavors,plant-basedproteins,andprobiotics

• AnimalNutritionup;continueddeliveryofNeoviasynergies,strengthinlivestock,andyear-over-yearimprovementinaminoacids,partiallyoffsetbysofterdemandinaquacultureandFXimpacts

InThreeQuarters

NutritionOPhasalreadysurpassedfull-year2019


ationofADM.

The Nutrition Opportunity

Sources:Euromonitor,FMI,ADMestimates


ationofADM.

Building a Global Nutrition Leader


ationofADM.

Complete Pantry of Ingredients and Solutions from Nature


ationofADM.

Driving Nutrition Growth for a Bright Future


ationofADM.

Confident in Strong Q4, Continued Momentum Through 2021


ationofADM.

Upcoming Investor Events

(Alleventsvirtual)

Baird2020GlobalIndustrialConferenceNovember10

StephensAnnualInvestmentConferenceNovember19

BMOGrowth&ESGConferenceDecember8-9

Additional Facts and Explanations


ationofADM.

Industry Environment

Corn

US 40% 31% 33%

Brazil n/a n/a n/a

Soybeans

US 51% 40% 30%

Brazil 53% 25% 26%

Argentina 2% 3% 6%

Soybeans

US ~$40 $15-$25

Europe $30-$40 $25-$30

BrazilExp:$0-$5Dom:$20-$30

Exp:$0-$5Dom:$15-$25

Argentina $3-$8 ∼$5

China $15-$20 $25-$30

FrontMonthBoardCrush ~$50 ~$27

Canola/Rapeseed

NorthAmerica $70-$80 $25-$40

Europe $30-$35 $20-$25AverageIndustryEthanolEBITDAMargins/gal3

$0.09 $(0.15) $(0.19)

AverageIndustryDailyProductionVolume(thousandsofbarrels/day)4

923 721 1,021

U.S.EthanolInventory(thousandsofbarrels)4

19,672 20,620 23,219

1ADMestimates2ADMestimates;reflectsmostcurrentmodelassumptionsanddataregardingcropproduction,quality,storage,andmarketinginformation3Bloomberg4EIAWeeklyPetroleumStatusReport

SpotGrossCrushMargins1

CurrentUS$/MT

Q2CallUS$/MT

U.S.EthanolMargins/Production Q320 Q220 Q319

FarmerSelling2

Current5-YearAverage

PriorYear

2020/2021CropYear


ationofADM.

ADM Additional Information

NutritionGrowth(amountsinmillions)

Growth Growth

Q320 vs.Q319 YTD20 vs.YTD19

GAAPRevenues

HumanNutrition 719 2% $2,161 3%

AnimalNutrition 732 (3)% $2,198 2%

Q22020 ~$95M

Q32020 ~$170M

CumulativeCrushDeferredTimingGains/(Losses)

ProcessedVolumesbyYear(000sofmetrictons)

CalendarYear

2018 2019Oilseeds 36,308 36,271

Corn 22,343 22,079

58,651 58,350

ProcessedVolumesbyQuarter(000sofmetrictons)

CY19 CY20

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Oilseeds 9,167 8,773 9,062 9,269 9,163 9,103 8,970

Corn 5,132 5,546 5,619 5,782 5,534 4,099 4,084

14,299 14,319 14,681 15,051 14,697 13,202 13,054

AsofSeptember30,2020,approximately$170Mofdeferredmark-to-markettiminggainsareexpectedtoberecognizedinsubsequentquarters

(1)Non-GAAPmeasure-seenotesonpage30(2)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpages27and28

Trailing4-Quarters

Q320 Q319 Q320 Q319AdjustedEBITDA(1)(2) $ 913 $ 886 $ 3,656 $ 3,265

AgServicesandOilseeds $ 527 $ 511 $ 2,376 $ 2,189CarbohydrateSolutions $ 323 $ 264 $ 1,003 $ 997Nutrition $ 201 $ 175 $ 777 $ 581OtherBusiness $ 21 $ 55 $ 95 $ 94Corporate $ (159)$ (119) $ (595)$ (596)

AdjustedEBITDA(1)(2)bySegment(inmillions)

18

Financial Appendix


ationofADM.

Q3 Adjusted Segment OP $849 millionAdjustedsegmentoperatingprofit(1,2)(inmillions)Excludesspecifieditems

*Segmentoperatingprofitasreportedwas$904M

(1)Non-GAAPmeasure-seenotesonpage30;(2)Adjustedsegmentoperatingprofitequalstotalsegmentoperatingprofitexcludingspecifieditemsandtimingeffects.

AgServicesandOilseeds CarbohydrateSolutions Nutrition OtherBusiness

Q32019 Q42019 Q12020 Q22020 Q32020$764 $1,028 $643 $804 $849*


ationofADM.

Segment Operating Profit and Corporate ResultsQuarterEndedSept.30

(Amountsinmillions) 2020 2019 Change

TotalSegmentOperatingProfit(1) $ 904 $ 758 $ 146

Specifieditems:(Gains)lossonsalesofassetsandbusinesses (57) — (57)

Impairment,restructuring,andsettlementcharges 2 6 (4)

AdjustedSegmentOperatingProfit(1)(2) $ 849 $ 764 $ 85

AgServicesandOilseeds $ 436 $ 417 $ 19

AgServices 147 161 (14)

Crushing 66 138 (72)

RefinedProductsandOther 127 80 47

Wilmar 96 38 58

CarbohydrateSolutions $ 246 $ 182 $ 64

StarchesandSweeteners 257 197 60

VantageCornProcessors (11) (15) 4

Nutrition $ 147 $ 118 $ 29

HumanNutrition 128 102 26

AnimalNutrition 19 16 3

OtherBusiness $ 20 $ 47 $ (27)

TotalSegmentOperatingProfit(1) $ 904 $ 758 $ 146

Corporate $ (704) $ (255) $ (449)

Interestexpense–net (83) (85) 2

Unallocatedcorporatecosts (196) (139) (57)

Othercharges (8) — (8)

Specifieditems:LIFOcredit(charge) — 16 (16)

Lossondebtconversionoption (15) — (15)

Earlydebtretirementcharges (396) — (396)

Impairmentandrestructuringcharges (6) (47) 41

EarningsBeforeIncomeTaxes $ 200 $ 503 $ (303)



ationofADM.

Balance Sheet Highlights

(Amountsinmillions) Sep.30,2020 Sep.30,2019Cash(1) $948 $958Netproperty,plant,andequipment 9,816 10,101Operatingworkingcapital(2) 8,122 7,457-Totalinventories 8,762 8,075

Totaldebt 8,133 8,888-CPoutstanding — 1,086

Shareholders’equity 19,341 18,895

Memos:AvailablecreditcapacitySeptember30-CP $5.0bil $3.9bil-Other $4.1bil $1.6bil

Readilymarketableinventory $5.6bil $4.7bil

(1)Cash=cashandcashequivalentsandshort-termmarketablesecurities(2)Currentassets(excludingcashandcashequivalentsandshort-termmarketablesecuritieslesscurrentliabilities(excludingshort-termdebtandcurrentmaturitiesoflong-termdebt)


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Cash Flow Highlights

NineMonthsEndedSept.30(Amountsinmillions) 2020 2019Cashfromoperationsbeforeworkingcapitalchanges $2,295 $1,700Changesinworkingcapital(1) 792 375Purchasesofproperty,plant,andequipment (558) (566)Netassetsofbusinessesacquired (3) (1,946)Sub-total 2,526 (437)

Marketablesecuritiesinvestment (1) 41Otherinvestingactivities 687 8Debtincrease/(decrease) (1,235) 348Dividends (607) (592)Stockbuyback (117) (150)Other 16 (36)Increase(decrease)incash,cashequivalents,restrictedcash,andrestrictedcashequivalents $1,269 ($818)

(1)Includesthechangeindeferredconsiderationof($4,603million)in2020and($5,714million)in2019andthenetproceedsfromretainedinterestinsecuritizedreceivablesof$4,603millionin2020and$5,714millionin2019whicharepresentedseparatelyasoperatingactivitiesandinvestingactivities,respectively,inthestatementofcashflowsasrequiredbyASU2016-15whichtookeffect1/1/18.


ationofADM.

GAAP Statement of Earnings Summary

QuarterEndedSept.30

2020 2019 Change

Revenues $15,126 $16,726 ($1,600)

Grossprofit 1,042 1,078 (36)

Selling,generalandadministrativeexpenses 636 578 58

Assetimpairment,exit,andrestructuringcharges 4 53 (49)

Equityin(earnings)lossesofunconsolidatedaffiliates (160) (88) (72)

Interestincome (16) (47) 31

Interestexpense 100 97 3

Other(income)expense–net 278 (18) 296

Earningsbeforeincometaxes 200 503 (303)

Incometax(benefit)expense (26) 95 (121)

Netearningsincludingnoncontrollinginterests 226 408 (182)

Less:Netearnings(losses)attributabletononcontrollinginterests 1 1 —

NetearningsattributabletoADM $ 225 $ 407 $ (182)

Earningspershare(fullydiluted) $ 0.40 $ 0.72 $ (0.32)

(Amountsinmillionsexceptpersharedata)


ationofADM.

Adjusted Earnings Per Share (EPS)(Amountsinmillionsexceptpersharedata)

QuarterEndedSept.302020 2019

Pre-tax After-tax Pershare Pre-tax After-tax PershareEarningsandEPS(fullydiluted)asreported $ 200 $ 225 $ 0.40 $ 503 $ 407 $ 0.72

AdjustmentsLIFO(credit)/charge — — — (16) (12) (0.02)(Gains)lossonsalesofassets (57) (54) (0.10) — — —Impairment,restructuring,andsettlementcharges 8 5 0.01 53 41 0.08Earlydebtretirementcharges 396 300 0.53 — — —Lossondebtconversionoption 15 15 0.03 — — —Taxadjustment 8 8 0.02 (5) (5) (0.01)AdjustedEarningsandadjustedEPS(non-GAAP)(1) $ 570 $ 499 $ 0.89 $ 535 $ 431 $ 0.77

(1)Non-GAAPmeasure-seenotesonpage30


ationofADM.

ROIC versus WACCLT ROIC Objective: 10%

(1)Non-GAAPmeasure-seenotesonpage30(2)AdjustedforLIFOandspecifieditems-seenotesonpage30(3)AdjustedforLIFO-seenotesonpage30

Trailing4QAverageROIC Trailing4QAverageAdjustedROIC

Q3CY16

Q3CY17

Q3CY18

Q3CY19

Q3CY20

4%

5%

6%

7%

8%

9%

10%

11%

Q3CY20

Trailing4QAverageAdjustedROIC(1)(2) 8.3 %

AnnualWACC 5.75 %

Trailing4QAverageAdjustedEVA $740M

Long-TermWACC 7.0 %

Trailing4QAverageROIC(1)(3) 6.3 %


ationofADM.

Return on Invested Capital AdjustedROICEarnings(1)

(Amountsinmillions) FourthQuarters

QuarterEnded Ended

Dec.31,2019 Mar.31,2020 Jun.30,2020 Sep.30,2020 Sep.30,2020

NetearningsattributabletoADM $ 504 $ 391 $ 469 $ 225 $ 1,589

Adjustments

Interestexpense 95 83 87 100 365

LIFOcharge(credit) 27 (91) — — (64)

Otheradjustments 253 48 8 355 664

Totaladjustments 375 40 95 455 965

Taxonadjustments (8) (7) (23) (120) (158)

Netadjustments 367 33 72 335 807

TotalAdjustedROICEarnings $ 871 $ 424 $ 541 $ 560 $ 2,396

AdjustedInvestedCapital(1)

(Amountsinmillions) Trailing

QuarterEnded FourQuarter

Dec.31,2019 Mar.31,2020 Jun.30,2020 Sep.30,2020 Average

Equity(2) $ 19,208 $ 18,952 $ 19,293 $ 19,322 $ 19,194

+ Interest-bearingliabilities(3) 8,891 12,512 9,181 8,141 9,681

+ LIFOadjustment(netoftax) 69 — — — 17

+ Otheradjustments(netoftax) 274 39 6 259 145

TotalAdjustedInvestedCapital $ 28,442 $ 31,503 $ 28,480 $ 27,722 $ 29,037

(1)Non-GAAPmeasure–seenotesonpage30(2)Excludesnoncontrollinginterests(3)Includesshort-termdebt,currentmaturitiesoflong-termdebt,financeleaseobligations,andlong-termdebt


ationofADM.

Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended September 30, 2020

AdjustedEBITDA(1)


QuarterEnded Ended


Earningsbeforeincometaxes $ 496 $ 375 $ 552 $ 200 $ 1,623


Depreciationamortization 251 245 244 238 978

LIFOcharge(credit) 27 (91) — — (64)

Losses(gains)onsalesofassetsandbusinesses 101 — (23) (57) 21

Assetimpairment,exit,andrestructuringcharges 103 41 16 8 168

Railroadmaintenanceexpense 51 73 — 28 152

Earlydebtretirementcharges — — 14 396 410

Expensesrelatedtoacquisitions 3 — — — 3

AdjustedEBITDA $ 1,127 $ 726 $ 890 $ 913 $ 3,656

AdjustedEBITDA(1)bySegment

(Amountsinmillions) FourQuarters

QuarterEnded Ended


AgServicesandOilseeds $ 833 $ 514 $ 502 $ 527 $ 2,376

CarbohydrateSolutions 258 148 274 323 1,003

Nutrition 160 199 217 201 777

OtherBusiness 20 15 39 21 95

Corporate (144) (150) (142) (159) (595)

AdjustedEBITDA $ 1,127 $ 726 $ 890 $ 913 $ 3,656(1)Non-GAAPmeasure–seenotesonpage30


ationofADM.

Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended September 30, 2019

AdjustedEBITDA(1)


QuarterEnded Ended


Earningsbeforeincometaxes $ 312 $ 315 $ 274 $ 503 $ 1,404


Depreciationamortization 235 245 248 249 977

LIFOcharge(credit) (4) 1 25 (16) 6

Losses(gains)onsalesofassetsandbusinesses 8 (12) — — (4)

Assetimpairment,exit,restructuring,andsettlementcharges 250 11 138 53 452

Expensesrelatedtoacquisitions 12 14 — — 26

AdjustedEBITDA $ 910 $ 675 $ 794 $ 886 $ 3,265

AdjustedEBITDA(1)bySegment

(Amountsinmillions) FourQuarters

QuarterEnded Ended


AgServicesandOilseeds $ 711 $ 510 $ 457 $ 511 $ 2,189

CarbohydrateSolutions 281 178 274 264 997

Nutrition 99 134 173 175 581

OtherBusiness (3) 24 18 55 94

Corporate (178) (171) (128) (119) (596)

AdjustedEBITDA $ 910 $ 675 $ 794 $ 886 $ 3,265

(1)Non-GAAPmeasure–seenotesonpage30


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2019 Segment OP and Adjusted Segment OP(1,2) Comparatives with VCP in Carbohydrate Solutions (in millions)

Qtr.Ended Qtr.Ended Qtr.Ended Qtr.Ended YearEnded

Mar.31,2019 Jun.30,2019 Sep.30,2019 Dec.31,2019 Dec.31,2019

As As As As As As As As As As As As

Reported Restated Reported Restated Reported Restated Reported Restated Reported Restated Reported Restated

SegmentOperatingProfit(1) SegmentOperatingProfit(1) $ 611 $ 611 $ 645 $ 645 $ 758 $ 758 $ 934 $ 934 $ 2,948 $ 2,948

Specifieditems: Specifieditems:

(Gains)lossesonsalesofassets/businesses (Gains)lossesonsalesofassets/businesses (12) (12) — — — — — — (12) (12)

Impairment,restructuring,andsettlementchargesImpairment,restructuring,andsettlementcharges 9 9 37 37 6 6 94 94 146 146

AdjustedSegmentOperatingProfit(1)(2) AdjustedSegmentOperatingProfit(1)(2) $ 608 $ 608 $ 682 $ 682 $ 764 $ 764 $ 1,028 $ 1,028 $ 3,082 $ 3,082

AgServicesandOilseeds AgServicesandOilseeds $ 417 $ 417 $ 362 $ 362 $ 417 $ 417 $ 739 $ 739 $ 1,935 $ 1,935

AgServices AgServices 75 75 90 90 161 161 176 176 502 502

Crushing Crushing 216 216 139 139 138 138 87 87 580 580

RefinedProductsandOther RefinedProductsandOther 72 72 71 71 80 80 363 363 586 586

Wilmar Wilmar 54 54 62 62 38 38 113 113 267 267

CarbohydrateSolutions CarbohydrateSolutions $ 96 $ 96 $ 192 $ 192 $ 182 $ 182 $ 174 $ 174 $ 644 $ 644

StarchesandSweeteners StarchesandSweeteners 170 135 218 215 207 197 208 206 803 753

Bioproducts VantageCornProcessors (74) (39) (26) (23) (25) (15) (34) (32) (159) (109)

Nutrition Nutrition $ 81 $ 81 $ 117 $ 117 $ 118 $ 118 $ 102 $ 102 $ 418 $ 418

WildFlavorsandSpecialtyIngredients HumanNutrition 88 88 103 103 102 102 83 83 376 376

AnimalNutrition AnimalNutrition (7) (7) 14 14 16 16 19 19 42 42

Other OtherBusiness $ 14 $ 14 $ 11 $ 11 $ 47 $ 47 $ 13 $ 13 $ 85 $ 85



ationofADM.

Notes: Non-GAAP ReconciliationTheCompanyusescertain“Non-GAAP”financialmeasuresasdefinedbytheSecuritiesandExchangeCommission.ThesearemeasuresofperformancenotdefinedbyaccountingprinciplesgenerallyacceptedintheUnitedStates,andshouldbeconsideredinadditionto,notinlieuof,GAAPreportedmeasures.

(1) AdjustednetearningsandAdjustedearningspershare(EPS)AdjustednetearningsreflectsADM’sreportednetearningsafterremovaloftheeffectonnetearningsofspecifieditemsasmorefullydescribedabove.AdjustedEPSreflectsADM’sfullydilutedEPSafterremovaloftheeffectonEPSasreportedofspecifieditemsasmorefullydescribedabove.ManagementbelievesthatAdjustednetearningsandAdjustedEPSareusefulmeasuresofADM’sperformancebecausetheyprovideinvestorsadditionalinformationaboutADM’soperationsallowingbetterevaluationofunderlyingbusinessperformanceandbetterperiod-to-periodcomparability.Thesenon-GAAPfinancialmeasuresarenotintendedtoreplaceorbealternativestonetearningsandEPSasreported,themostdirectlycomparableGAAPfinancialmeasures,oranyothermeasuresofoperatingresultsunderGAAP.Earningsamountsdescribedabovehavebeendividedbythecompany’sdilutedsharesoutstandingforeachrespectiveperiodinordertoarriveatanadjustedEPSamountforeachspecifieditem.

(2) SegmentoperatingprofitandadjustedsegmentoperatingprofitSegmentoperatingprofitisADM’sconsolidatedincomefromoperationsbeforeincometaxexcludingcorporateitems.Adjustedsegmentoperatingprofit,anon-GAAPmeasure,issegmentoperatingprofitexcludingspecifieditems.ManagementbelievesthatsegmentoperatingprofitandadjustedsegmentoperatingprofitareusefulmeasuresofADM’sperformancebecausetheyprovideinvestorsinformationaboutADM’sbusinessunitperformanceexcludingcorporateoverheadcostsaswellasspecifieditems.SegmentoperatingprofitandadjustedsegmentoperatingprofitarenotmeasuresofconsolidatedoperatingresultsunderU.S.GAAPandshouldnotbeconsideredalternativestoincomebeforeincometaxes,themostdirectlycomparableGAAPfinancialmeasure,oranyothermeasureofconsolidatedoperatingresultsunderU.S.GAAP.

(3) AdjustedReturnonInvestedCapital(ROIC)AdjustedROICisAdjustedROICearningsdividedbyadjustedinvestedcapital.AdjustedROICearningsisADM’snetearningsadjustedfortheaftertaxeffectsofinterestexpense,changesintheLIFOreserveandotherspecifieditems.AdjustedinvestedcapitalisthesumofADM’sequity(excludingnoncontrollinginterests)andinterest-bearingliabilitiesadjustedfortheaftertaxeffectoftheLIFOreserve,andotherspecifieditems.ManagementbelievesAdjustedROICisausefulfinancialmeasurebecauseitprovidesinvestorsinformationaboutADM’sreturnsexcludingtheimpactsofLIFOinventoryreservesandotherspecifieditemsandincreasesperiod-to-periodcomparabilityofunderlyingbusinessperformance.ManagementusesAdjustedROICtomeasureADM’sperformancebycomparingAdjustedROICtoitsweightedaveragecostofcapital(WACC).AdjustedROIC,AdjustedROICearningsandAdjustedinvestedcapitalarenon-GAAPfinancialmeasuresandarenotintendedtoreplaceorbealternativestoGAAPfinancialmeasures.

(4) AverageROICAverageROICisADM’strailing4-quarternetearningsadjustedfortheafter-taxeffectsofinterestexpenseandchangesintheLIFOreservedividedbythesumofADM’sequity(excludingnon-controllinginterests)andinterest-bearingliabilitiesadjustedfortheafter-taxeffectoftheLIFOreserve.ManagementusesaverageROICforinvestorsasadditionalinformationaboutADM’sreturns.AverageROICisanon-GAAPfinancialmeasureandisnotintendedtoreplaceorbeanalternativetoGAAPfinancialmeasures.

(5) AdjustedEconomicValueAddedAdjustedeconomicvalueaddedisADM’strailing4-quartereconomicvalueaddedadjustedforLIFOandotherspecifieditems.TheCompanycalculateseconomicvalueaddedbycomparingADM’strailing4-quarteradjustedreturnstoitsAnnualWACCmultipliedbyadjustedinvestedcapital.Adjustedeconomicvalueaddedisanon-GAAPfinancialmeasureandisnotintendedtoreplaceorbeanalternativetoGAAPfinancialmeasures.

(6) AdjustedEBITDAAdjustedEBITDAisADM’searningsbeforetaxes,interest,anddepreciationandamortization,adjustedforLIFOandotherspecifieditems.TheCompanycalculatesadjustedEBITDAbyremovingtheimpactofLIFOandotherspecifieditemsandaddingbacktheamountsofinterestexpenseanddepreciationandamortizationtoearningsbeforeincometaxes.ManagementbelievesthatadjustedEBITDAisausefulmeasureoftheCompany'sperformancebecauseitprovidesinvestorsadditionalinformationabouttheCompany'soperationsallowingbetterevaluationofunderlyingbusinessperformanceandbetterperiodtoperiodcomparability.AdjustedEBITDAisanon-GAAPfinancialmeasureandisnotintendedtoreplaceorbeanalternativetoearningsbeforeincometaxes,themostdirectlycomparableGAAPfinancialmeasure.

Cover SlideSafe Harbor StatementQuarter AccomplishmentsQuarterly Financial HighlightsQuarterly Other & Corporate ResultsAS&OCarbohydrate SolutionsNutritionNutrition deep dive slide 1Nutrition deep dive slide 2Nutrition deep dive slide 3Nutrition deep dive slide 4JRL CloseUpcoming Investor Events

Additional Facts and ExplanationsIndustry EnvironmentADM Additional Information

Financial AppendixAdjusted Segment OPSegment Operating Profit & Corporate ResultsBalance Sheet HighlightsCash Flow HighlightsGAAP Statement of Earnings SummaryAdjusted EPSROIC versus WACCROICAdjusted EBITDAAdjusted EBITDA comparativeSegment OP and Adjusted Segment OP--New Segments CopyNotes: Non-GAAP Reconciliation

Documents

Third Quarter 2020 · 2020. 10. 29. · 4. Q3 2020 Financial Highlights (in millions except per share data and percentages) Quarter Ended Sept. 30 2020 2019 Change Adjusted earnings