1Proprietarybusinessinform
ationofADM.
Fourth Quarter 2020 Earnings Conference Call January26,2021
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ationofADM.
Safe Harbor Statement
Someofourcommentsandmaterialsinthispresentationconstituteforward-lookingstatementsthatreflectmanagement’scurrentviewsandestimatesoffutureeconomiccircumstances,industryconditions,Companyperformanceandfinancialresults.
Thesestatementsandmaterialsarebasedonmanyassumptionsandfactorsthataresubjecttoriskanduncertainties.ADMhasprovidedadditionalinformationinitsreportsonfilewiththeSECconcerningassumptionsandfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseinthispresentation,andyoushouldcarefullyreviewtheassumptionsandfactorsinourSECreports.
Totheextentpermittedunderapplicablelaw,ADMassumesnoobligationtoupdateanyforward-lookingstatementsasaresultofnewinformationorfutureevents.
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ationofADM.
• COEs,1ADMdrivingimprovements
• ReducingGHGemissions,energy,waterandwaste;supportingsustainablefarmingpractices
A Year of Accomplishments
• Deliveredonourpurposebyservingcustomersandprovidingnutritionamidunprecedentedcircumstances
• Achieved$300+MinAS&Ocapitalreductioninitiatives
• Neoviasynergies,expandedplant-basedproteincapabilities,newNutritionproducts
• Productionofretailflour,starchesandhigh-gradealcohol
• Innovationpartnerships:AirProtein,Spiber,InnovaFeed
• Exceeded2020goalof$1.3Binrun-ratebenefits
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ationofADM.
Q4 2020 Financial Highlights (inmillionsexceptpersharedataandpercentages)
QuarterEndedDec.31
2020 2019 Change
Adjustedearningspershare(1)(2) $1.21 $1.42 ($0.21)
Totalsegmentoperatingprofit(unadjusted)(3) $1,139 $934 $205
Adjustedsegmentoperatingprofit(1)(3) $1,152 $1,028 $124
Trailing4QaverageadjustedROIC(1) 7.7% 7.5% 20bps
Trailing4QadjustedEBITDA(1)(4) $3,660 $3,482 $178
AnnualadjustedEVA(1) $573 $213 $360
Quarterlyeffectivetaxrate 8% (1)%
YearEndedDec.31
2020 2019 Change
Cashfromoperationsbeforeworkingcapitalchanges $3,129 $2,286 $843
Purchasesofproperty,plant,andequipment $823 $828 $(5)
Returnofcapitaltoshareholders $942 $939 $3
Increase(decrease)incash,cashequivalents,restrictedcash,andrestrictedcashequivalents $1,656 $(853) $2,509
Netdebttototalcapitalratio(asofDecember31) 32% 29%
(1)Non-GAAPmeasures-seenotesonpage26(2)Seeearningspershare,themostdirectlycomparableGAAPmeasure,onpage20(3)Seesegmentoperatingprofitasreportedonpage16(4)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpages23and24
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ationofADM.
Q4 Other Business and Corporate Results
OtherBusiness
Q42019 Q12020 Q22020 Q32020 Q42020$(438) $(224) $(261) $(704) $(383)
• OtherBusinessresultsloweronADMInvestorServicesearningsandintra-companyinsurancesettlements
• UnallocatedCorporateupduetoperformance-basedcompaccruals,increasedITandproject-relatedexpenses
• Otherchargesdownduetolowerrailroadmaintenanceexpenses,partiallyoffsetbyabsenceofprior-yearinvestmentgains
Unallocatedcorporate Interestexpense OtherchargesLIFO Otherspecifieditems
Q42019 Q12020 Q22020 Q32020 Q42020$13 $11 $38 $20 $(17)
CorporateCharges
(Inmillions)
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ationofADM.
AgServices Crushing RefinedProductsandOther Wilmar
Q42019 Q12020 Q22020 Q32020 Q42020
$739 $422 $413 $436 $834
AS&O: Strong Execution Delivers Record Q4
• AgServices:strongexecutiontocapturehigherexportvolumesandmarginsinNA;SAoriginationlowerafteraggressivefarmersellingin1H;continuedgreatperformancefromGlobalTrade
• Crushing:extremelygoodexecutioninstrongdemandenvironment
• RPOhigherabsentrecognitionofthebiodieseltaxcreditinQ42019
• EquityearningsfromWilmarhigher
Adjustedsegmentoperatingprofit(inmillions)
2020OP+9%Outstandingfull-yearresultsof$2.1B;
multipleproductionrecords,including
globalcrush
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ationofADM.
Q42019 Q12020 Q22020 Q32020 Q42020
$174 $68 $195 $246 $208
VantageCornProcessors(VCP) StarchesandSweeteners
Carbohydrate Solutions: Another Quarter of Good Execution, Higher Results
Adjustedsegmentoperatingprofit(inmillions)
• S&Suponlowernetcorncostsandintra-companyinsurancesettlements,partiallyoffsetbylowerresultsfromcornoilandwetmillethanolmargins
• VCPbetter;highermarginsasteamcontinuedtomeetdemandforhigh-gradealcohol,partiallyoffsetbyfixedcostsfromidleddrymills
2020OP+11%Full-yearresultsof$717Mdemonstrateexcellent
executioninachallengingenvironment
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ationofADM.
Q42019 Q12020 Q22020 Q32020 Q42020
$102 $142 $158 $147 $127
HumanNutrition AnimalNutrition
Nutrition: 24% YOY Growth in Q4
Adjustedsegmentoperatingprofit(inmillions)
• HumanNutritionhigherongreatperformanceinflavors;strengthinplantproteins;goodsalesandmarginsinprobioticsandfibers;andintra-companyinsurancesettlements.Prior-yearresultsincludedrevenueandincomefromlaunchofSpiberrelationship.
• AnimalNutritionupsignificantly:strongperformanceinAsiaandEMEAI;improvementinaminoacidresults;negativecurrencyeffectsinLatinAmerica
2020OP+37%Full-yearresultsof
$574M,5%increaseinrevenuereflectharvestinginvestments,leadershipin
consumertrends,partnershipwith
customers
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ationofADM.
Expect to Grow Operating Profit and EPS in 2021
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ationofADM.
Upcoming Investor Events
BairdSustainabilityConference2021February23
BankofAmerica2021GlobalAgricultureandMaterialsConferenceMarch3-4
ExaneBNPParibasConsumerIngredientConferenceMarch16-17
Additional Facts and Explanations
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ationofADM.
Industry Environment
Corn
US 74% 67% 66%
Brazil 25% 22% 14%
Soybeans
US 79% 72% 62%
Brazil 58% 43% 39%
Argentina 6% 7% 17%
Soybeans
US ~$30 ~$40
Europe $50-$60 $30-$40
BrazilExp:$40-$50Dom:$40-$50
Exp:$0-$5Dom:$20-$30
Argentina $25-$30 $3-$8
China $40-$50 $15-$20
FrontMonthBoardCrush ~$29 ~$50
Canola/Rapeseed
NorthAmerica $80-$100 $70-$80
Europe $60-$80 $30-$35AverageIndustryEthanolEBITDAMargins/gal3
$0.11 $0.09 $(0.05)
AverageIndustryDailyProductionVolume(thousandsofbarrels/day)4
957 923 1,034
U.S.EthanolInventory(thousandsofbarrels)4
23,284 19,672 21,034
1ADMestimates2ADMestimates;reflectsmostcurrentmodelassumptionsanddataregardingcropproduction,quality,storage,andmarketinginformation3Bloomberg4EIAWeeklyPetroleumStatusReport
SpotGrossCrushMargins1
CurrentUS$/MT
Q3CallUS$/MT
U.S.EthanolMargins/Production Q420 Q320 Q419
FarmerSelling2
Current5-YearAverage
PriorYear
2020/2021CropYear
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ationofADM.
ADM Additional Information
NutritionRevenues(amountsinmillions)
Growth Growth
Q420 vs.Q419 FY20 vs.FY19GAAPRevenues
Nutrition $ 1,441 1.8% $ 5,800 2.2%
HumanNutrition $ 651 1.7% $ 2,812 2.4%
AnimalNutrition $ 790 1.9% $ 2,988 1.9%
FXAdjustedRevenues(1)
Nutrition $ 1,458 3.0% $ 5,962 5.0%
HumanNutrition $ 643 0.5% $ 2,822 2.8%
AnimalNutrition $ 815 5.2% $ 3,140 7.1%
Q32020 ~$170M
Q42020 ~$295M
CumulativeCrushDeferredTimingGains/(Losses)
ProcessedVolumesbyYear(000sofmetrictons)
CalendarYear
2018 2019 2020Oilseeds 36,308 36,271 36,565
Corn 22,343 22,079 17,885
58,651 58,350 54,450
ProcessedVolumesbyQuarter(000sofmetrictons)
CY19 CY20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Oilseeds 9,167 8,773 9,062 9,269 9,163 9,103 8,970 9,329
Corn 5,132 5,546 5,619 5,782 5,534 4,099 4,084 4,168
14,299 14,319 14,681 15,051 14,697 13,202 13,054 13,497
AsofDecember31,2020,approximately$295Mofdeferredmark-to-markettiminggainsareexpectedtoberecognizedinsubsequentquarters
(1)Non-GAAPmeasure-seenotesonpage26(2)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpages23and24
Trailing4-Quarters
Q420 Q419 Q420 Q419AdjustedEBITDA(1)(2) $ 1,131 $ 1,127 $ 3,660 $ 3,482
AgServicesandOilseeds $ 926 $ 833 $ 2,469 $ 2,311CarbohydrateSolutions $ 284 $ 258 $ 1,029 $ 974Nutrition $ 185 $ 160 $ 802 $ 642OtherBusiness $ (14)$ 20 $ 61 $ 117Corporate $ (250)$ (144) $ (701)$ (562)
AdjustedEBITDA(1)(2)bySegment(inmillions)
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Financial Appendix
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ationofADM.
Q4 Adjusted Segment OP $1.15 BillionAdjustedsegmentoperatingprofit(1,2)(inmillions)Excludesspecifieditems
*Segmentoperatingprofitasreportedwas$1,139M
(1)Non-GAAPmeasure-seenotesonpage26;(2)Adjustedsegmentoperatingprofitequalstotalsegmentoperatingprofitexcludingspecifieditemsandtimingeffects.
AgServicesandOilseeds CarbohydrateSolutions Nutrition OtherBusiness
Q42019 Q12020 Q22020 Q32020 Q42020$1,028 $643 $804 $849 $1,152*
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ationofADM.
Segment Operating Profit and Corporate ResultsQuarterEndedDec.31 YearEndedDec.31
(Amountsinmillions) 2020 2019 Change 2020 2019 Change
TotalSegmentOperatingProfit(1) $ 1,139 $ 934 $ 205 $ 3,455 $ 2,948 $ 507
Specifieditems:(Gains)lossesonsalesofassetsandbusinesses (3) — (3) (83) (12) (71)
Impairment,restructuring,andsettlementcharges 16 94 (78) 76 146 (70)
AdjustedSegmentOperatingProfit(1)(2) $ 1,152 $ 1,028 $ 124 $ 3,448 $ 3,082 $ 366
AgServicesandOilseeds $ 834 $ 739 $ 95 $ 2,105 $ 1,935 $ 170
AgServices 346 176 170 828 502 326
Crushing 217 87 130 466 580 (114)
RefinedProductsandOther 153 363 (210) 439 586 (147)
Wilmar 118 113 5 372 267 105
CarbohydrateSolutions $ 208 $ 174 $ 34 $ 717 $ 644 $ 73
StarchesandSweeteners 229 206 23 762 753 9
VantageCornProcessors (21) (32) 11 (45) (109) 64
Nutrition $ 127 $ 102 $ 25 $ 574 $ 418 $ 156
HumanNutrition 90 83 7 462 376 86
AnimalNutrition 37 19 18 112 42 70
OtherBusiness $ (17) $ 13 $ (30) $ 52 $ 85 $ (33)
TotalSegmentOperatingProfit(1) $ 1,139 $ 934 $ 205 $ 3,455 $ 2,948 $ 507
Corporate $ (383) $ (438) $ 55 $ (1,572) $ (1,360) $ (212)
Interestexpense–net (67) (72) 5 (313) (348) 35
Unallocatedcorporatecosts (278) (193) (85) (857) (647) (210)
Othercharges (29) (33) 4 (54) (51) (3)
Specifieditems:LIFOcredit(charge) — (27) 27 91 (37) 128
Lossondebtconversionoption (2) — (2) (17) — (17)
Gain(loss)ondebtextinguishment 1 — 1 (409) — (409)
Gains(losses)onsalesofassets 7 (101) 108 7 (101) 108
Expensesrelatedtoacquisitions (4) (3) (1) (4) (17) 13
Impairment,restructuring,andsettlementcharges (11) (9) (2) (16) (159) 143
EarningsBeforeIncomeTaxes $ 756 $ 496 $ 260 $ 1,883 $ 1,588 $ 295(1)Non-GAAPmeasure-seenotesonpage26;(2)Adjustedsegmentoperatingprofitequalstotalsegmentoperatingprofitexcludingspecifieditemsandtimingeffects.
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ationofADM.
Balance Sheet Highlights
(Amountsinmillions) Dec.31,2020 Dec.31,2019Cash(1) $667 $852Netproperty,plant,andequipment 9,951 10,106Operatingworkingcapital(2) 10,481 7,970-Totalinventories 11,713 9,170
Totaldebt 9,929 8,881-CPoutstanding 1,662 957
Shareholders’equity 20,022 19,225
Memos:AvailablecreditcapacityDecember31-CP $3.3bil $4.0bil-Other $3.3bil $2.4bil
Readilymarketableinventory $7.9bil $5.7bil
(1)Cash=cashandcashequivalentsandshort-termmarketablesecurities(2)Currentassets(excludingcashandcashequivalentsandshort-termmarketablesecuritieslesscurrentliabilities(excludingshort-termdebtandcurrentmaturitiesoflong-termdebt)
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ationofADM.
Cash Flow Highlights
YearsEndedDec.31(Amountsinmillions) 2020 2019Cashfromoperationsbeforeworkingcapitalchanges $3,129 $2,286Changesinworkingcapital(1) (912) (57)Purchasesofproperty,plant,andequipment (823) (828)Netassetsofbusinessesacquired (15) (1,946)Sub-total 1,379 (545)
Marketablesecuritiesinvestment 4 77Otherinvestingactivities 696 275Debtincrease/(decrease) 492 301Dividends (809) (789)Stockbuyback (133) (150)Other 27 (22)Increase(decrease)incash,cashequivalents,restrictedcash,andrestrictedcashequivalents $1,656 ($853)
(1)Includesthechangeindeferredconsiderationof($4,603million)in2020and($7,681million)in2019andthenetproceedsfromretainedinterestinsecuritizedreceivablesof$4,603millionin2020and$7,681millionin2019whicharepresentedseparatelyasoperatingactivitiesandinvestingactivities,respectively,inthestatementofcashflowsasrequiredbyASU2016-15whichtookeffect1/1/18.
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ationofADM.
GAAP Statement of Earnings Summary
QuarterEndedDec.31
2020 2019 Change
Revenues $17,978 $16,329 $1,649
Grossprofit 1,352 1,169 183
Selling,generalandadministrativeexpenses 749 654 95
Assetimpairment,exit,andrestructuringcharges 19 103 (84)
Equityin(earnings)lossesofunconsolidatedaffiliates (176) (175) (1)
Gainondebtextinguishment (1) — (1)
Interestincome (17) (50) 33
Interestexpense 69 95 (26)
Other(income)expense–net (47) 46 (93)
Earningsbeforeincometaxes 756 496 260
Incometax(benefit)expense 63 (3) 66
Netearningsincludingnoncontrollinginterests 693 499 194
Less:Netearnings(losses)attributabletononcontrollinginterests 6 (5) 11
NetearningsattributabletoADM $ 687 $ 504 $ 183
Earningspershare(fullydiluted) $ 1.22 $ 0.90 $ 0.32
(Amountsinmillionsexceptpersharedata)
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ationofADM.
Adjusted Earnings Per Share (EPS)(Amountsinmillionsexceptpersharedata)
QuarterEndedDec.312020 2019
Pre-tax After-tax Pershare Pre-tax After-tax PershareEarningsandEPS(fullydiluted)asreported $ 756 $ 687 $ 1.22 $ 496 $ 504 $ 0.90
AdjustmentsLIFO(credit)/charge — — — 27 20 0.04(Gains)lossonsalesofassets (10) (8) (0.01) 101 133 0.24Impairment,restructuring,andsettlementcharges 27 20 0.03 103 93 0.16Loss(gain)ondebtextinguishment (1) (1) — — — —Lossondebtconversionoption 2 2 — — — —Expensesrelatedtoacquisitions 4 3 0.01 3 2 —Taxadjustment (19) (19) (0.04) 46 46 0.08AdjustedEarningsandadjustedEPS(non-GAAP)(1) $ 759 $ 684 $ 1.21 $ 776 $ 798 $ 1.42
(1)Non-GAAPmeasure-seenotesonpage26
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ationofADM.
ROIC versus WACCLT ROIC Objective: 10%
(1)Non-GAAPmeasure-seenotesonpage26(2)AdjustedforLIFOandspecifieditems-seenotesonpage26(3)AdjustedforLIFO-seenotesonpage26
Trailing4QAverageROIC Trailing4QAverageAdjustedROIC
Q4CY16
Q4CY17
Q4CY18
Q4CY19
Q4CY20
4%
5%
6%
7%
8%
9%
10%
11%
Q4CY20
Trailing4QAverageAdjustedROIC(1)(2) 7.7 %
AnnualWACC 5.75 %
Trailing4QAverageAdjustedEVA $573M
Long-TermWACC 7.0 %
Trailing4QAverageROIC(1)(3) 6.7 %
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ationofADM.
Return on Invested Capital AdjustedROICEarnings(1)
(Amountsinmillions) FourthQuarters
QuarterEnded Ended
Mar.31,2020 June30,2020 Sep.30,2020 Dec.31,2020 Dec.31,2020
NetearningsattributabletoADM $ 391 $ 469 $ 225 $ 687 $ 1,772
Adjustments
Interestexpense 83 87 100 69 339
LIFOcharge(credit) (91) — — — (91)
Otheradjustments 48 8 355 1 412
Totaladjustments 40 95 455 70 660
Taxonadjustments (7) (23) (120) (22) (172)
Netadjustments 33 72 335 48 488
TotalAdjustedROICEarnings $ 424 $ 541 $ 560 $ 735 $ 2,260
AdjustedInvestedCapital(1)
(Amountsinmillions) Trailing
QuarterEnded FourQuarter
Mar.31,2020 June30,2020 Sep.30,2020 Dec.31,2020 Average
Equity(2) $ 18,952 $ 19,293 $ 19,322 $ 20,000 $ 19,392
+ Interest-bearingliabilities(3) 12,512 9,181 8,141 9,937 9,943
+ LIFOadjustment(netoftax) — — — — —
+ Otheradjustments(netoftax) 39 6 259 (5) 75
TotalAdjustedInvestedCapital $ 31,503 $ 28,480 $ 27,722 $ 29,932 $ 29,410
(1)Non-GAAPmeasure–seenotesonpage26(2)Excludesnoncontrollinginterests(3)Includesshort-termdebt,currentmaturitiesoflong-termdebt,financeleaseobligations,andlong-termdebt
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ationofADM.
Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended December 31, 2020
AdjustedEBITDA(1)
(Amountsinmillions) FourthQuarters
QuarterEnded Ended
Mar.31,2020 June30,2020 Sep.30,2020 Dec.31,2020 Dec.31,2020
Earningsbeforeincometaxes $ 375 $ 552 $ 200 $ 756 $ 1,883
Interestexpense 83 87 100 69 339
Depreciationamortization 245 244 238 249 976
LIFOcharge(credit) (91) — — — (91)
Losses(gains)onsalesofassetsandbusinesses — (23) (57) (10) (90)
Assetimpairment,restructuring,andsettlementcharges 41 16 8 27 92
Railroadmaintenanceexpense 73 — 28 37 138
Gain(loss)ondebtextinguishment — 14 396 (1) 409
Expensesrelatedtoacquisitions — — — 4 4
AdjustedEBITDA $ 726 $ 890 $ 913 $ 1,131 $ 3,660
AdjustedEBITDA(1)bySegment
(Amountsinmillions) FourQuarters
QuarterEnded Ended
Mar.31,2020 June30,2020 Sep.30,2020 Dec.31,2020 Dec.31,2020
AgServicesandOilseeds $ 514 $ 502 $ 527 $ 926 $ 2,469
CarbohydrateSolutions 148 274 323 284 1,029
Nutrition 199 217 201 185 802
OtherBusiness 15 39 21 (14) 61
Corporate (150) (142) (159) (250) (701)
AdjustedEBITDA $ 726 $ 890 $ 913 $ 1,131 $ 3,660(1)Non-GAAPmeasure–seenotesonpage26
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ationofADM.
Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended December 31, 2019
AdjustedEBITDA(1)
(Amountsinmillions) FourthQuarters
QuarterEnded Ended
Mar.31,2019 Jun.30,2019 Sep.30,2019 Dec.31,2019 Dec.31,2019
Earningsbeforeincometaxes $ 315 $ 274 $ 503 $ 496 $ 1,588
Interestexpense 101 109 97 95 402
Depreciationamortization 245 248 249 251 993
LIFOcharge(credit) 1 25 (16) 27 37
Losses(gains)onsalesofassetsandbusinesses (12) — — 101 89
Assetimpairment,exit,restructuring,andsettlementcharges 11 138 53 103 305
Railroadmaintenanceexpense — — — 51 51
Expensesrelatedtoacquisitions 14 — — 3 17
AdjustedEBITDA $ 675 $ 794 $ 886 $ 1,127 $ 3,482
AdjustedEBITDA(1)bySegment
(Amountsinmillions) FourQuarters
QuarterEnded Ended
Mar.31,2019 Jun.30,2019 Sep.30,2019 Dec.31,2019 Dec.31,2019
AgServicesandOilseeds $ 510 $ 457 $ 511 $ 833 $ 2,311
CarbohydrateSolutions 178 274 264 258 974
Nutrition 134 173 175 160 642
OtherBusiness 24 18 55 20 117
Corporate (171) (128) (119) (144) (562)
AdjustedEBITDA $ 675 $ 794 $ 886 $ 1,127 $ 3,482(1)Non-GAAPmeasure–seenotesonpage26
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ationofADM.
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
(1)Non-GAAPmeasure-seenotesonpage26;(2)Adjustedsegmentoperatingprofitequalstotalsegmentoperatingprofitexcludingspecifieditemsandtimingeffects.
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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’sdilutedsh aresoutstandingforeachrespectiveperiodinordertoarriveatanadjustedEPSamountforeachspecifieditem.
(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.
(7) FXAdjustedRevenueFXadjustedrevenueisADM'sGAAPrevenueadjustedfortheimpactoffluctuationsinforeigncurrencyexchangerates.TheCompanycalculatesFXadjustedrevenuebyconvertingitscurrentperiodrevenueusingthepriorperiodexchangeratesandcomparingtheadjustedamounttoitspriorperiodreportedresults.ManagementbelievesprovidingFXadjustedrevenueprovidesvaluablesupplementalinformationregardingitsrevenueandfacilitatesperiod-to-periodcomparison.FXadjustedrevenueisanon-GAAPmeasureandisnotintendedtoreplaceorbeanalternativetoGAAPrevenues,themostdirectlycomparableGAAPfinancialmeasure.
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