Safe Harbor Statement Confidential and proprietary business - PowerPoint PPT Presentation

Fourth Quarter 2019 Earnings Conference Call January 30, 2020

2 Safe Harbor Statement Confidential and 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 financial results. These statements and materials 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 2019 Accomplishments Confidential and proprietary business information of ADM. • Decatur complex and Golden • Launch of Ag Services & • Expanded leadership position Peanut improvement Oilseeds segment; in alternative proteins delivering on objectives working with Marfrig • NA Milling optimization, including Mendota • Company-wide • Enhanced global citrus simplification initiative platform with FCC and Ziegler • Global organizational redesign • Centralization of critical • Created global animal activities, including new nutrition business w/Neovia • Continuing evolution of asset global operations portfolio: • New animal nutrition facilities organization in Decatur and Vietnam ◦ Agreement for sale of • 31,000 colleagues trained Brazilian palm plantation • Continued expansion in health in ADM A2E operations & wellness with Yerbalatina ◦ Sold investment in CIP • Expanded destination marketing into Turkey

4 Readiness: Making ADM Better Confidential and proprietary business information of ADM. Targets 650 Prioritized Initiatives 435 $1.2B Run Rate Savings by end of 2020 $815M $250-300M Accrued Benefits by end of 2019 $250M

5 Q4 2019 Financial Highlights Confidential and proprietary business information of ADM. (in millions except per share data and percentages) Quarter Ended Dec. 31 2019 2018 Change Adjusted earnings per share (1) (2) $1.42 $0.88 $0.54 Total segment operating profit (unadjusted) (3) $934 $786 $148 Adjusted segment operating profit (1) (3) $1,028 $860 $168 Trailing 4Q average adjusted ROIC (1) 7.5% 8.3% (80)bps Annual adjusted EVA (1) $213 $557 ($344) Quarterly effective tax rate (1)% (2)% Year Ended Dec. 31 2019 2018 Change Cash from operations before working capital changes $2,286 $2,672 ($386) Purchases of property, plant, and equipment $(828) ($842) $14 Return of capital to shareholders $939 $835 $104 Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents $(853) $1,985 ($2,838) Net debt to total capital ratio (as of Dec. 31) 29% 25% (1) Non-GAAP measures - see notes on page 27 (2) See earnings per share, the most comparable GAAP measure, on page 21 (3) See segment operating profit as reported on page 18

6 Q4 Other and Corporate Results (in millions) Confidential and proprietary business information of ADM. Other • Other results significantly higher on Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 improved performance from both $(14) $14 $11 $47 $13 captive insurance and ADM Investor Services Corporate Charges • Unallocated corporate costs higher on increased spending in IT and Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 business transformation, and higher $(474) $(296) $(371) $(255) $(438) benefits accruals • Total Corporate benefited from lower interest expense and improved intercompany funding costs, partially offset by a railroad maintenance expense with an corresponding benefit in tax expense Unallocated corporate Interest expense Other charges LIFO Other specified items

7 AS&O: Up Year-Over Year; Strong Results in RPO Confidential and proprietary business information of ADM. Segment operating profit (in millions) • Ag Services slightly lower; NA export volumes and margins Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 lower on delayed harvest; SA $615 $417 $362 $417 $739 higher on good export demand and farmer selling • Crush down vs. strong prior- year results; canola margins strong on oil environment; YOY variance in timing effects negatively impacted results • RPO benefited from biodiesel tax credit; best Q4 and full year in recent history even absent tax credit • Wilmar slightly higher YOY Ag Services Crushing Refined Products and Other Wilmar

8 Carbohydrate Solutions: Similar to Q3 Confidential and proprietary business information of ADM. Segment operating profit (in millions) • S&S up YOY on reduced Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 manufacturing costs, including $197 $96 $192 $182 $174 benefits of Decatur improvements. Improving environment in EMEAI, though still down YOY. Wheat milling up globally • Ethanol industry margins remain unfavorable; launched Vantage Corn Processors subsidiary Starches and Sweeteners Bioproducts

9 Nutrition: Full-Year Results up 23 Percent Confidential and proprietary business information of ADM. Segment operating profit (in millions) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 • Record year for WILD $62 $81 $117 $118 $102 • WFSI significantly higher YOY; Q4 sales up 8% on constant currency basis, and OP growth of 40% YOY • Animal Nutrition up substantially; strong Neovia contributions, synergies ahead of schedule; continued weak global lysine pricing environment WFSI Animal Nutrition

10 New Corporate Identity Reflects Confidential and proprietary business information of ADM. Purpose, Evolution of Company Confidence in strong results in 2020, years to come

11 Upcoming Investor Confidential and proprietary business information of ADM. Events Morgan Stanley 2020 Chemicals, Agriculture, and Packaging Corporate Access Day New York, NY Feb. 13 Bank of America 2020 Global Agriculture and Materials Conference Ft. Lauderdale, FL Feb. 26-27 Exane BNP Paribas Consumer Ingredients Conference London, England March 18

Additional Facts and Explanations

13 Supplementary Q4 Earnings Information Confidential and proprietary business information of ADM. Sale of “CIP” Equity Investment Biodiesel Blender’s Tax Credit 2019 Effective Tax Rate Reconciliation • Retroactive Credit for 2018 and Effective Tax Rate 2019 Impact • Legal Name: Compagnie Industrielle et 2019 signed into law on Financière des Produits Amylaces SA December 20, 2019 Initial 2019 Guidance Range (17-20%) 18.5% • Background: Luxembourg-based private • Full retroactive impact of both investment fund years recorded in Q4 2019 results Variances from Initial Guidance: • Strategic Rationale for Sale: Monetize • ADM assumes partial or full tax Biodiesel Blender’s Tax Credit (8.0%) credit risk as part of biodiesel non-core equity investment (2018/2019) sales/purchases, commonly • Financial Impact: shares part of tax credit with Railroad Tax Credit ("45G") (3.5%) ◦ Cash Proceeds: $210 million customer ◦ CIP Sale (adjusted) 2.6% ADM Initial Investment: $38 • Financial Impact: million in 1988 ▪ Reported and Adjusted EPS Discrete Items (adjusted) 2.5% ◦ Reported Earnings Impact: ($133) Impact: $0.61/share million, ($0.24)/share Discrete Items (non-adjusted) (1.0%) ▪ Ag & Oilseeds OP Impact: • Loss on Sale, inclusive of FX/ $270 million or $0.48/share Geographical Mix/Other 2.0% interest: ($101) million ▪ Tax Savings: $74 million, or • Tax Impact of Sale: ($32) 2019 GAAP ETR Tax Rate After Discrete 13.2% $0.13/share million ◦ Adjusted EPS Impact: None, ▪ Financial impact attributed Excluded roughly equally between 2018 and 2019 Note: All dollar amounts reported in US Dollars

14 Industry Environment Confidential and proprietary business information of ADM. Spot Gross 19/20 Farmer Recent Q3 Call 5-Year Crush Margins 1 Selling 1 Current US$/MT US$/MT Average Soybeans: Corn: US 60% 57% US $25-$30 $15-$20 Brazil 13% n/a Europe $30-$40 $7-$12 Soybeans: Exp: $20-$30 Exp: ~$0 Brazil Dom: $20-$30 Dom: $10-$15 US 69% 67% Brazil 43% 36% Argentina $5-$10 $7-$12 Argentina 25% 7% China $30-$35 $25-$30 Front Month Board Crush ~$35 ~$27 U.S. Ethanol Canola/Rapeseed: Margins/Production Q4 18 Q4 19 Q3 19 North America $45-$55 $40-$50 Average Industry Ethanol EBITDA Margins/ ($.05) ($.19) ($0.11) gal 2 Europe $10-$15 $15-$20 Average Industry Daily Production Volume 43.3 42.9 43.9 (million gallons/day) 3 1 ADM estimates 2 Bloomberg 3 EIA Weekly Ethanol Plant Production average for respective quarter