Second Quarter 2015 Earnings Conference Call

Transcript:Second Quarter 2015 Earnings Conference Call:
Second Quarter 2015 Earnings Conference Call August 4, 2015 2 Safe Harbor Statement Some of our comments constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financial results. These statements are based on many assumptions and factors that are subject to risk and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation, and you should carefully review the assumptions and factors in our SEC reports. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements as a result of new information or future events. 3 CEO’s Perspective Demonstrated strength and value of our geographic and business-portfolio diversity Robust ethanol demand, but record production limited margins Sweeteners and starches delivered strong results Another strong Oilseeds performance WFSI had excellent quarter and continued progress on synergies Ag Services saw lower North American volumes and margins, late-quarter price moves, record second quarter for milling Continued to advance strategic plan that’s improving ROIC and growing EVA Closed global chocolate sale and Barcarena JV On track to close global cocoa sale and Eaststarch transaction later this year Great progress on operational excellence initiatives 4 Q2 2015 Financial Highlights Effective tax rate 27% 28% Trailing 4Q average adjusted ROIC 9.0% 7.8% +120bps Annual adjusted EVA $610 $372 +$238 5 Segment Operating Profit and Corporate Results Quarter Ended June 30 (1) Non-GAAP measure - see notes on page 23; (2) Adjusted segment operating profit equals total segment operating profit adjusted for specified items and timing effects. 6 Cash Flow Summary: Strong Cash Flow Generation Supported $1.5 Billion Return of Capital in 1H15 Six Months Ended June 30 7 Balance Sheet Highlights (Amounts in millions) June 30, 2015 June 30, 2014 (1)Cash = cash and cash equivalents and short-term marketable securities (2)Current assets (excluding cash and cash equivalents and short-term marketable securities) less current liabilities (excluding short-term debt and current maturities of long-term debt) 8 Q2 2014 $835 Q3 2014 $941 Q4 2014 $1,128 Q1 2015 $883 Q2 2015 $724 Ag Services Corn Oilseeds WFSI Other Segment Operating Profit Demonstrates Power of Business Model ROIC of 9.0% up 120bps year- over-year EVA up $238M, increasing >60% year-over-year 1H15 operating profit similar to 1H14, despite >$200M decline in ethanol Segment operating