Post on 10-Jun-2021
transcript
1Proprietarybusinessinform
ationofADM.
First Quarter 2021 Earnings Conference Call April27,2021
2Proprietarybusinessinform
ationofADM.
Someofourcommentsandmaterialsinthispresentationconstituteforward-lookingstatementsthatreflectmanagement’scurrentviewsandestimatesoffutureeconomiccircumstances,industryconditions,Companyperformanceandfinancialresults.
Thesestatementsandmaterialsarebasedonmanyassumptionsandfactorsthataresubjecttoriskanduncertainties.ADMhasprovidedadditionalinformationinitsreportsonfilewiththeSECconcerningassumptionsandfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseinthispresentation,andyoushouldcarefullyreviewtheassumptionsandfactorsinourSECreports.
Totheextentpermittedunderapplicablelaw,ADMassumesnoobligationtoupdateanyforward-lookingstatementsasaresultofnewinformationorfutureevents.
Safe Harbor Statement
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ationofADM.
AdjustedEarningsPerShare1,2 AdjustedSegmentOperatingProfit1,3
(1)Non-GAAPmeasures-seenotesonpage28 (2)Seeearningspershare,themostdirectlycomparableGAAPmeasure,onpage24(3)Seesegmentoperatingprofitasreportedonpage20(4)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpage27
Exceptionally Strong Q1 Results
$0.64
$1.39
Q12020 Q12021$0.00
$0.50
$1.00
$1.50
inm
illions
$643
$1,199
Q12020 Q12021$0
$500
$1,000
$1,500
7.6%9.0%
Q12020 Q12021—%
5.0%
10.0%
Trailing4-QuartersAdjustedROIC1
inm
illions $3,533
$4,193
Q12020 Q12021$—
$2,000
$4,000
$6,000
Trailing4-QuartersAdjustedEBITDA1,4
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ationofADM.
Positive Demand Trends for Broad Array of Products and Solutions
(1)USCensus;ADMestimates(2)RabobankMarch2021GlobalFoodserviceOutlook(3)GrandViewResearch,Inc.,ProteinIngredientsMarketAnalysis,2020
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ationofADM.
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ationofADM.
Innovating Across the Value Chain
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ationofADM.
Supporting SustainabilityADM's New Policy to Protect Forests, Biodiversity and Communities
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ationofADM.
MoreThan1Billion
gallonsofnewUSrenewablegreendieselcapacitycomingonline
in2021—a70%increasevs2020
Ag Services & OilseedsStrong Demand, Outstanding Execution, Record Q1
in m
illio
ns
SegmentOperatingProfit
$422$422
$777$777
AgServices Crushing RPO Wilmar
Q12020 Q12021$0
$200
$400
$600
$800
$1,000
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ationofADM.
DeepFreeze,DeepCapabilitiesCarbohydrateSolutionsquicklyflexedproductionacrossitsbroadfootprinttoservecustomersduring
February'sextremeweather
Carbohydrate SolutionsSignificant Growth, Improving Environment
in m
illio
ns
SegmentOperatingProfit
$68$68
$259$259
Starches and Sweeteners Vantage Corn Processors (VCP)
Q12020 Q12021-$50
$0
$50
$100
$150
$200
$250
$300
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ationofADM.
Award-WinningInnovation
ADM'sBPL1,aground-breakingprobiotictargeting
metabolichealth,washonoredwitha2021
BIGInnovationAward
NutritionStrong Demand Across Key Market Segments, Solid Revenue and OP Growth
SegmentOperatingProfitRevenue
in m
illio
ns
$1,471$1,471 $1,550$1,550
HumanNutrition AnimalNutrition
Q12020GAAPRevenue
Q12021FXAdjusted
Revenue(1)(2)
$0
$500
$1,000
$1,500
$2,000
in m
illio
ns
$142$142$154$154
HumanNutrition AnimalNutrition
Q12020
Q12021
$0
$50
$100
$150
$200
(1)Non-GAAPmeasure-seenoteonpage28(2)SeeNutritionrevenue,themostdirectlycomparableGAAPmeasure,onpage16
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ationofADM.
CorporateOtherBusiness
Other Business Results and Corporatein
mill
ions
$11
$9
Q12020 Q12021$0
$3
$6
$9
$12
in m
illio
nsInterestUnallocatedCorporateOtherChargesSpecifiedItems
Q12020 Q12021-$100
$0
$100
$200
$300
$400
$(224) $(281)
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ationofADM.
The Path to Sustainable Growth
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ationofADM.
BankofAmericaPlant-BasedFoodConferenceMay11
BMOFarmtoMarketMay19-20
DbAccessGlobalConsumerConferenceJune7-8
StifelVirtualCrossSectorConferenceJune9
Upcoming Investor Events
Additional Facts and Explanations
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ationofADM.
Corn
US 85% 81% 80%
Brazil 35% 33% 32%
Soybeans
US 88% 85% 74%
Brazil 67% 56% 74%
Argentina 14% 14% 20%
Soybeans
US $40-45 ~$30
Europe $30-$40 $50-$60
BrazilExp:$15-$20Dom:$20-$40
Exp:$40-$50Dom:$40-$50
Argentina $20-$25 $25-$30
China $10-$12 $40-$50
FrontMonthBoardCrush ~$25 ~$29
Canola/Rapeseed
NorthAmerica $70-$80 $80-$100
Europe $40-$60 $60-$80AverageIndustryEthanolEBITDAMargins/gal3
$0.11 $0.11 $(0.23)
AverageIndustryDailyProductionVolume(thousandsofbarrels/day)4
914 957 1,034
U.S.EthanolInventory(thousandsofbarrels)4
20,624 23,824 24,140
(1)ADMestimates(2)ADMestimates;reflectsmostcurrentmodelassumptionsanddataregardingcropproduction,quality,storage,andmarketinginformation(3)Bloomberg(4)EIAWeeklyPetroleumStatusReport
SpotGrossCrushMargins1
CurrentUS$/MT
Q4CallUS$/MT
U.S.EthanolMargins/Production Q121 Q420 Q120
FarmerSelling2
Current5-YearAverage
PriorYear
2020/2021CropYear
Industry Environment
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ationofADM.
NutritionRevenues(amountsinmillions)
Growth
Q121 vs.Q120GAAPRevenues
Nutrition $ 1,563 6.3%
HumanNutrition $ 754 4.9%
AnimalNutrition $ 809 7.6%
FXAdjustedRevenues(1)
Nutrition $ 1,550 5.4%
HumanNutrition $ 735 2.2%
AnimalNutrition $ 815 8.4%
Q42020 ~$295M
Q12021 ~$265M
CumulativeCrushDeferredTimingGains/(Losses)
ProcessedVolumesbyYear(000sofmetrictons)
CalendarYear
2019 2020Oilseeds 36,271 36,565
Corn 22,079 17,885
58,350 54,450
ProcessedVolumesbyQuarter(000sofmetrictons)
CY20 CY21
Q1 Q2 Q3 Q4 Q1
Oilseeds 9,163 9,103 8,970 9,329 8,960
Corn 5,534 4,099 4,084 4,168 3,650
14,697 13,202 13,054 13,497 12,610
AsofMarch31,2021,approximately$265Mofdeferredmark-to-markettiminggainsareexpectedtoberecognizedinsubsequentquarters
(1)Non-GAAPmeasure-seenotesonpage28(2)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpage27
Trailing4-Quarters
Q121 Q120 Q121 Q120AdjustedEBITDA(1)(2) $ 1,259 $ 726 $ 4,193 $ 3,533
AgServicesandOilseeds $ 871 $ 514 $ 2,826 $ 2,315CarbohydrateSolutions $ 342 $ 148 $ 1,223 $ 944Nutrition $ 209 $ 199 $ 812 $ 707OtherBusiness $ 11 $ 15 $ 57 $ 108Corporate $ (174)$ (150) $ (725)$ (541)
AdjustedEBITDA(1)(2)bySegment(inmillions)
ADM Additional Information
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Financial Appendix
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ationofADM.
Q1 2021 Financial Highlights (inmillionsexceptpersharedataandpercentages)
QuarterEndedMar.31
2021 2020 Change
Adjustedearningspershare(1)(2) $1.39 $0.64 $0.75
Totalsegmentoperatingprofit(unadjusted)(3) $1,105 $599 $506
Adjustedsegmentoperatingprofit(1)(3) $1,199 $643 $556
Trailing4QaverageadjustedROIC(1) 9.0% 7.6% 140bps
Trailing4QadjustedEBITDA(1)(4) $4,193 $3,533 $660
AnnualadjustedEVA(1) $1,109 $538 $571
Quarterlyeffectivetaxrate 16% (4)%
QuarterEndedMar.31
2021 2020 Change
Cashfromoperationsbeforeworkingcapitalchanges $1,202 $839 $363
Purchasesofproperty,plant,andequipment $174 $194 $(20)
Returnofcapitaltoshareholders $208 $315 ($107)
Increase(decrease)incash,cashequivalents,restrictedcash,andrestrictedcashequivalents $1,206 $4,540 ($3,334)
Netdebttototalcapitalratio(asofMarch31) 33% 29%
(1)Non-GAAPmeasures-seenotesonpage28(2)Seeearningspershare,themostdirectlycomparableGAAPmeasure,onpage24(3)Seesegmentoperatingprofitasreportedonpage20(4)Seeearningsbeforeincometaxes,themostdirectlycomparableGAAPmeasure,onpage27
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ationofADM.
Q1 Adjusted Segment OP $1.2 BillionAdjustedsegmentoperatingprofit(1,2)(inmillions)Excludesspecifieditems
*Segmentoperatingprofitasreportedwas$1,105M(1)Non-GAAPmeasure-seenotesonpage28(2)Adjustedsegmentoperatingprofitequalstotalsegmentoperatingprofitexcludingspecifieditems.
AgServicesandOilseeds CarbohydrateSolutions Nutrition OtherBusiness
Q12020 Q22020 Q32020 Q42020 Q12021$643 $804 $849 $1,152 $1,199*
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ationofADM.
Segment Operating Profit and Corporate ResultsQuarterEndedMar.31
(Amountsinmillions) 2021 2020 Change
TotalSegmentOperatingProfit(1) $ 1,105 $ 599 $ 506
Impairment,restructuring,andsettlementcharges 94 44 50
AdjustedSegmentOperatingProfit(1)(2) $ 1,199 $ 643 $ 556
AgServicesandOilseeds $ 777 $ 422 $ 355
AgServices 209 164 45
Crushing 382 70 312
RefinedProductsandOther 101 81 20
Wilmar 85 107 (22)
CarbohydrateSolutions $ 259 $ 68 $ 191
StarchesandSweeteners 222 99 123
VantageCornProcessors 37 (31) 68
Nutrition $ 154 $ 142 $ 12
HumanNutrition 128 113 15
AnimalNutrition 26 29 (3)
OtherBusiness $ 9 $ 11 $ (2)
TotalSegmentOperatingProfit(1) $ 1,105 $ 599 $ 506
Corporate $ (281) $ (224) $ (57)
Interestexpense–net (64) (77) 13
Unallocatedcorporatecosts (202) (189) (13)
Other 10 (52) 62
Specifieditems:LIFOcredit(charge) — 91 (91)
Lossondebtconversionoption (20) — (20)
Restructuring(charges)adjustment (5) 3 (8)
EarningsBeforeIncomeTaxes $ 824 $ 375 $ 449
(1Non-GAAPmeasure-seenotesonpage28(2)Adjustedsegmentoperatingprofitequalstotalsegmentoperatingprofitexcludingspecifieditems.
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ationofADM.
Balance Sheet Highlights
(Amountsinmillions) Mar.31,2021 Mar.31,2020Cash(1) $694 $4,734Netproperty,plant,andequipment 9,799 9,883Operatingworkingcapital(2) 12,841 7,985-Totalinventories 12,764 8,830
Totaldebt 11,208 12,503-CPoutstanding 1,623 2,178
Shareholders’equity 20,861 18,976
Memos:AvailablecreditcapacityMarch31-CP $4.9bil $2.8bil-Other $2.1bil $3.1bil
Readilymarketableinventory $9.0bil $5.6bil
(1)Cash=cashandcashequivalentsandshort-termmarketablesecurities(2)Currentassets(excludingcashandcashequivalentsandshort-termmarketablesecuritieslesscurrentliabilities(excludingshort-termdebtandcurrentmaturitiesoflong-termdebt)
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ationofADM.
Cash Flow Highlights
ThreeMonthsEndedMar.31(Amountsinmillions) 2021 2020Cashfromoperationsbeforeworkingcapitalchanges $1,202 $839Changesinworkingcapital(1) (904) 551Purchasesofproperty,plant,andequipment (174) (194)Netassetsofbusinessesacquired — (8)Sub-total 124 1,188
Marketablesecurities 1 5Otherinvestingactivities 4 5Debtincrease/(decrease) 1,322 3,668Dividends (208) (203)Stockbuyback — (112)Other (37) (11)Increase(decrease)incash,cashequivalents,restrictedcash,andrestrictedcashequivalents $1,206 $4,540
(1)Changesinworkingcapitalin2020includedthechangeindeferredconsiderationof($2,045million)andnetproceedsfromretainedinterestinsecuritizedreceivablesof$2,045millionwhicharepresentedseparatelyasoperatingactivitiesandinvestingactivities,respectively,inthestatementofcashflowsasrequiredbyASU2016-15whichtookeffect1/1/18.
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ationofADM.
GAAP Statement of Earnings Summary
QuarterEndedMar.31
2021 2020 Change
Revenues $18,893 $14,970 $3,923
Grossprofit 1,548 951 597
Selling,generalandadministrativeexpenses 749 664 85
Assetimpairment,exit,andrestructuringcharges 59 41 18
Equityin(earnings)lossesofunconsolidatedaffiliates (125) (140) 15
Interestincome (13) (40) 27
Interestexpense 87 83 4
Other(income)expense–net (33) (32) (1)
Earningsbeforeincometaxes 824 375 449
Incometax(benefit)expense 131 (16) 147
Netearningsincludingnoncontrollinginterests 693 391 302
Less:Netearnings(losses)attributabletononcontrollinginterests 4 — 4
NetearningsattributabletoADM $ 689 $ 391 $ 298
Earningspershare(fullydiluted) $ 1.22 $ 0.69 $ 0.53
(Amountsinmillionsexceptpersharedata)
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ationofADM.
Adjusted Earnings Per Share (EPS)(Amountsinmillionsexceptpersharedata)
QuarterEndedMar.312021 2020
Pre-tax After-tax Pershare Pre-tax After-tax PershareEarningsandEPS(fullydiluted)asreported $ 824 $ 689 $ 1.22 $ 375 $ 391 $ 0.69
AdjustmentsLIFO(credit)/charge — — — (91) (69) (0.12)Impairment,exit,restructuring,andsettlementcharges 99 74 0.13 41 32 0.06Lossondebtconversionoption 20 20 0.04 — — —Taxadjustment — — — 7 7 0.01AdjustedEarningsandadjustedEPS(non-GAAP)(1) $ 943 $ 783 $ 1.39 $ 332 $ 361 $ 0.64
(1)Non-GAAPmeasure-seenotesonpage28
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ROIC versus WACCLT ROIC Objective: 10%
(1)Non-GAAPmeasure-seenotesonpage28(2)AdjustedforLIFOandspecifieditems-seenotesonpage28(3)AdjustedforLIFO-seenotesonpage28
Trailing4QAverageROIC Trailing4QAverageAdjustedROIC
Q1CY17
Q1CY18
Q1CY19
Q1CY20
Q1CY21
4%
5%
6%
7%
8%
9%
10%
11%
Q1CY21
Trailing4QAverageAdjustedROIC(1)(2) 9.0 %
AnnualWACC 5.25 %
Trailing4QAverageAdjustedEVA $1,109M
Long-TermWACC 7.0 %
Trailing4QAverageROIC(1)(3) 7.9 %
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ationofADM.
Return on Invested Capital AdjustedROICEarnings(1)
(Amountsinmillions) FourthQuarters
QuarterEnded Ended
June30,2020 Sep.30,2020 Dec.31,2020 Mar.31,2021 Mar.31,2021
NetearningsattributabletoADM $ 469 $ 225 $ 687 $ 689 $ 2,070
Adjustments
Interestexpense 87 100 69 87 343
Otheradjustments 8 355 1 99 463
Totaladjustments 95 455 70 186 806
Taxonadjustments (23) (120) (22) (45) (210)
Netadjustments 72 335 48 141 596
TotalAdjustedROICEarnings $ 541 $ 560 $ 735 $ 830 $ 2,666
AdjustedInvestedCapital(1)
(Amountsinmillions) Trailing
QuarterEnded FourQuarter
June30,2020 Sep.30,2020 Dec.31,2020 Mar.31,2021 Average
Equity(2) $ 19,293 $ 19,322 $ 20,000 $ 20,841 $ 19,864
+ Interest-bearingliabilities(3) 9,181 8,141 9,937 11,208 9,617
+ Otheradjustments(netoftax) 6 259 (5) 74 84
TotalAdjustedInvestedCapital $ 28,480 $ 27,722 $ 29,932 $ 32,123 $ 29,565
(1)Non-GAAPmeasure–seenotesonpage28(2)Excludesnoncontrollinginterests(3)Includesshort-termdebt,currentmaturitiesoflong-termdebt,financeleaseobligations,andlong-termdebt
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Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)(1) Four Quarters Ended March 31, 2021
AdjustedEBITDA(1)
(Amountsinmillions) FourthQuarters
QuarterEnded Ended
June30,2020 Sep.30,2020 Dec.31,2020 Mar.31,2021 Mar.31,2021
Earningsbeforeincometaxes $ 552 $ 200 $ 756 $ 824 $ 2,332
Interestexpense 87 100 69 87 343
Depreciationamortization 244 238 249 249 980
Losses(gains)onsalesofassetsandbusinesses (23) (57) (10) — (90)
Assetimpairment,exit,restructuring,andsettlementcharges 16 8 27 99 150
Railroadmaintenanceexpense — 28 37 — 65
Gain(loss)ondebtextinguishment 14 396 (1) — 409
Expensesrelatedtoacquisitions — — 4 — 4
AdjustedEBITDA $ 890 $ 913 $ 1,131 $ 1,259 $ 4,193
AdjustedEBITDA(1)bySegment
(Amountsinmillions) FourQuarters
QuarterEnded Ended
June30,2020 Sep.30,2020 Dec.31,2020 Mar.31,2021 Mar.31,2021
AgServicesandOilseeds $ 502 $ 527 $ 926 $ 871 $ 2,826
CarbohydrateSolutions 274 323 284 342 1,223
Nutrition 217 201 185 209 812
OtherBusiness 39 21 (14) 11 57
Corporate (142) (159) (250) (174) (725)
AdjustedEBITDA $ 890 $ 913 $ 1,131 $ 1,259 $ 4,193
(1)Non-GAAPmeasure–seenotesonpage28
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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’snetearningsadjustedfortheafter-taxeffectsofinterestexpense,changesintheLIFOreserveandotherspecifieditems.AdjustedinvestedcapitalisthesumofADM’sequity(excludingnoncontrollinginterests)andinterest-bearingliabilitiesadjustedfortheafter-taxeffectoftheLIFOreserve,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-quartereconomicvalueaddedadjustedforspecifieditems.TheCompanycalculateseconomicvalueaddedbycomparingADM’strailing4-quarteradjustedreturnstoitsAnnualWACCmultipliedbyadjustedinvestedcapital.Adjustedeconomicvalueaddedisanon-GAAPfinancialmeasureandisnotintendedtoreplaceorbeanalternativetoGAAPfinancialmeasures.
(6) AdjustedEBITDAAdjustedEBITDAisADM’searningsbeforetaxes,interest,anddepreciationandamortization,adjustedforspecifieditems.TheCompanycalculatesadjustedEBITDAbyremovingtheimpactofspecifieditemsandaddingbacktheamountsofinterestexpenseanddepreciationandamortizationtoearningsbeforeincometaxes.ManagementbelievesthatadjustedEBITDAisausefulmeasureoftheCompany'sperformancebecauseitprovidesinvestorsadditionalinformationabouttheCompany'soperationsallowingbetterevaluationofunderlyingbusinessperformanceandbetterperiodtoperiodcomparability.AdjustedEBITDAisanon-GAAPfinancialmeasureandisnotintendedtoreplaceorbeanalternativetoearningsbeforeincometaxes,themostdirectlycomparableGAAPfinancialmeasure.
(7) FXAdjustedRevenueFXadjustedrevenueisADM'sGAAPrevenueadjustedfortheimpactoffluctuationsinforeigncurrencyexchangerates.TheCompanycalculatesFXadjustedrevenuebyconvertingitscurrentperiodrevenueusingthepriorperiodexchangeratesandcomparingtheadjustedamounttoitspriorperiodreportedresults.ManagementbelievesprovidingFXadjustedrevenueprovidesvaluablesupplementalinformationregardingitsrevenueandfacilitatesperiod-to-periodcomparison.FXadjustedrevenueisanon-GAAPmeasureandisnotintendedtoreplaceorbeanalternativetoGAAPrevenues,themostdirectlycomparableGAAPfinancialmeasure.