Business Wire | Oct 26, 2021 07:00AM EDT

ADM Reports Third Quarter Earnings per Share of $0.93, $0.97 on an Adjusted Basis

Oct. 26, 2021

CHICAGO--(BUSINESS WIRE)--Oct. 26, 2021--ADM (NYSE: ADM) today reported financial results for the quarter ended September 30, 2021.

"Agile execution across our tightly integrated supply chain amid an environment of strong demand and robust crush margins, and continued impressive growth in Nutrition, drove our eighth consecutive quarter of year-over-year adjusted operating profit growth," said Chairman and CEO Juan Luciano.

"Our team's great ability to leverage the favorable operating environment, and the consistent implementation of our strategic plan, have put ADM on track for a strong fourth quarter culminating in a second consecutive year of record earnings per share. And as we look ahead, we remain optimistic in sustainable earnings growth in the medium term as we continue to execute our strategy, including the dynamic positioning of our business portfolio."

ADM has made a series of strategic growth and portfolio announcements in recent months, including significantly enhancing its growing pet business with a 75% ownership stake in PetDine, and continuing to advance its evolution to higher-value sustainable solutions in Carbohydrate Solutions with the sale of the Peoria ethanol complex; an MoU with Gevo, Inc. for the production of sustainable aviation fuel; and an agreement with LG Chem to explore U.S.-based production of plant-based biosolutions.

Third Quarter 2021 Highlights

(Amounts in millions except per share amounts) 2021 2020

Earnings per share (as reported) $ 0.93 $ 0.40

Adjusted earnings per share^1 $ 0.97 $ 0.89



Segment operating profit $ 1,000 $ 904

Adjusted segment operating profit (loss)^1 $ 1,002 $ 849

Ag Services and Oilseeds 618 436

Carbohydrate Solutions 213 246

Nutrition 176 147

Other Business (5 ) 20

* Q3 2021 EPS as reported of $0.93 includes a $0.05 per share charge related to debt extinguishment, a $0.01 per share charge related to restructuring and settlement, a $0.01 per share gain related to the mark-to-market adjustment on the Wilmar exchangeable bond, and a $0.01 per share tax benefit related to certain discrete items. Adjusted EPS, which excludes these items, was $0.97.1

^1 Non-GAAP financial measures; see pages 5, 10, 11 and 12 for explanations andreconciliations, including after-tax amounts.

Quarterly Results of Operations

Ag Services & Oilseeds delivered substantially higher results versus the third quarter of 2020.

* Ag Services executed well in a challenging environment, including a rapid return to operation after Hurricane Ida. Overall results were significantly lower versus the prior-year quarter, driven by approximately $50 million in net negative timing effects that should reverse in coming quarters; a $54 million insurance settlement recorded in the prior-year period; and lower export volumes caused by Hurricane Ida. Global Trade continued its strong performance.

* Crushing had substantially higher year-over-year results. The team executed well, delivering stronger margins in a dynamic environment that included strong demand for vegetable oil to support our existing food customers as well as increasing production of renewable diesel. Results were also driven by approximately $70 million in net positive timing effects in the quarter.

* Refined Products and Other results were significantly higher than the prior-year period, driven by positive timing effects of approximately $80 million that are expected to reverse in future quarters, along with strong execution in EMEA and NA biodiesel and strong refining premiums due to demand for renewable diesel and foodservice recovery in North America.

* Equity earnings from Wilmar were lower versus the third quarter of 2020.

Carbohydrate Solutions results were lower year over year.

* Starches and Sweeteners, including ethanol production from our wet mills, managed through dynamic market conditions, optimizing mix between sweeteners and ethanol production through the quarter. Year-over-year results were significantly lower primarily due to higher input costs.

* Vantage Corn Processors results were much higher versus the third quarter of 2020, supported by the resumption of production at our two dry mills and improved fuel ethanol margins, particularly late in the quarter.

Nutrition delivered another strong performance, with revenue growth of 17% helping drive 20% higher year-over-year operating profits.

* Human Nutrition delivered 9% higher profits. Higher volume and improved product mix, with particular strength in beverage, drove strong Flavors results in EMEA and North America, partially offset by lower results in APAC. Specialty Ingredients continued to benefit from strong demand for alternative proteins, offset by some higher costs. Health & Wellness results were higher on robust sales growth in bioactives and fiber.

* Animal Nutrition profits were nearly double the year-ago period, driven primarily by strength in amino acids as well as feed additives and ingredients, partially offset by higher costs in LATAM and slower demand recovery in APAC.

Other Business results were substantially lower than the prior-year period, driven primarily by captive insurance underwriting losses, most of which were offset by corresponding recoveries in other business segments.

Other Items of Note

As additional information to help clarify underlying business performance, the table on page 10 includes reported earnings and EPS as well as adjusted earnings and EPS.

In Corporate results, interest expense decreased year over year on lower interest rates and the favorable liability management actions taken in the prior year. Unallocated corporate costs were higher year over year due primarily to higher IT operating and project-related costs and transfers of costs from business segments into the centralized centers of excellence in supply chain and operations. Corporate results also included debt extinguishment charges of $36 million ($0.05 per share) and a gain related to the mark-to-market adjustment on the Wilmar exchangeable bond of $7 million ($0.01 per share).

The effective tax rate for the quarter was 18 percent compared to a benefit of 13 percent in the prior year. The low rate in the prior-year quarter included the effects of the significant early debt retirement, the sale of a portion of the Company's shares in Wilmar, and changes in the forecasted geographic mix of pretax earnings on the 2020 annual effective tax rate in that period.

Note: Additional Facts and Explanations

Additional facts and explanations about results and industry environment can be found at the end of the ADM Q3 Earnings Presentation at www.adm.com/webcast.

Conference Call Information

ADM will host a webcast on October 26, 2021, at 8 a.m. Central Time to discuss financial results and provide a company update. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.

Forward-Looking Statements

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.

About ADM

At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We're a global leader in human and animal nutrition and the world's premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at www.adm.com.

Financial Tables Follow

Source: Corporate Release

Segment Operating Profit, Adjusted Segment Operating Profit (a non-GAAPfinancial measure)

and Corporate Results

(unaudited)

Quarter ended Nine months ended

September 30 September 30

(In millions) 2021 2020 Change 2021 2020 Change



Segment Operating $ 1,000 $ 904 $ 96 $ 3,250 $ 2,316 $ 934 Profit

Specified items:

(Gains) losses onsales of assets and - (57 ) 57 (22 ) (80 ) 58 businesses

Impairment,restructuring, and 2 2 - 133 60 73 settlement charges

Adjusted Segment $ 1,002 $ 849 $ 153 $ 3,361 $ 2,296 $ 1,065 Operating Profit



Ag Services and $ 618 $ 436 $ 182 $ 1,965 $ 1,271 $ 694 Oilseeds

Ag Services 36 147 (111 ) 435 482 (47 )

Crushing 280 66 214 812 249 563

Refined Products 236 127 109 467 286 181 and Other

Wilmar 66 96 (30 ) 251 254 (3 )



Carbohydrate $ 213 $ 246 $ (33 ) $ 855 $ 509 $ 346 Solutions

Starches and 178 257 (79 ) 706 533 173 Sweeteners

Vantage Corn 35 (11 ) 46 149 (24 ) 173 Processors



Nutrition $ 176 $ 147 $ 29 $ 531 $ 447 $ 84

Human Nutrition 139 128 11 429 372 57

Animal Nutrition 37 19 18 102 75 27



Other Business $ (5 ) $ 20 $ (25 ) $ 10 $ 69 $ (59 )





Segment Operating $ 1,000 $ 904 $ 96 $ 3,250 $ 2,316 $ 934 Profit



Corporate Results $ (347 ) $ (704 ) $ 357 $ (948 ) $ (1,189 ) $ 241



Interest expense - (66 ) (83 ) 17 (200 ) (246 ) 46 net

Unallocated (231 ) (196 ) (35 ) (681 ) (579 ) (102 )corporate costs

Other (17 ) (8 ) (9 ) 42 (25 ) 67

Specified items:

LIFO credit - - - - 91 (91 )(charge)

Debt extinguishment (36 ) (396 ) 360 (36 ) (410 ) 374 charges

Expenses related to (3 ) - (3 ) (3 ) - (3 )acquisitions

Gain (loss) on debt 7 (15 ) 22 17 (15 ) 32 conversion option

Impairment,restructuring, and (1 ) (6 ) 5 (87 ) (5 ) (82 )settlement charges

Earnings Before $ 653 $ 200 $ 453 $ 2,302 $ 1,127 $ 1,175 Income Taxes

Segment operating profit is ADM's consolidated income from operations before income tax excluding corporate items. Adjusted segment operating profit, a non-GAAP financial measure, is segment operating profit excluding specified items. Management believes that segment operating profit and adjusted segment operating profit are useful measures of ADM's performance because they provide investors information about ADM's business unit performance excluding corporate overhead costs as well as specified items. Segment operating profit and adjusted segment operating profit are not measures of consolidated operating results under U.S. GAAP and should not be considered alternatives to income before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under U.S. GAAP.

Segment operating profit is ADM's consolidated income from operations beforeincome tax excluding corporate items. Adjusted segment operating profit, anon-GAAP financial measure, is segment operating profit excluding specifieditems. Management believes that segment operating profit and adjusted segmentoperating profit are useful measures of ADM's performance because they provideinvestors information about ADM's business unit performance excluding corporateoverhead costs as well as specified items. Segment operating profit andadjusted segment operating profit are not measures of consolidated operatingresults under U.S. GAAP and should not be considered alternatives to incomebefore income taxes, the most directly comparable GAAP financial measure, orany other measure of consolidated operating results under U.S. GAAP.

Consolidated Statements of Earnings

(unaudited)

Quarter ended

Nine months ended

September 30

September 30

2021

2020

2021

2020

(in millions, except per share amounts)

Revenues

$

20,340

$

15,126

$

62,159

$

46,377

Cost of products sold (1)

19,014

14,084

57,822

43,276

Gross profit

1,326

1,042

4,337

3,101

Selling, general, and administrative expenses (2)

720

636

2,208

1,938

Asset impairment, exit, and restructuring costs (3)

2

4

84

61

Equity in (earnings) losses of unconsolidated affiliates

(110

)

(160

)

(398

)

(403

)

Investment income

(20

)

(20

)

(83

)

(94

)

Interest expense (4)

61

100

188

270

Other (income) expense - net (5,6,7,8)

20

282

36

202

Earnings before income taxes

653

200

2,302

1,127

Income tax expense (benefit) (9)

120

(26

)

364

38

Net earnings including noncontrolling interests

533

226

1,938

1,089

Less: Net earnings (losses) attributable to noncontrolling interests

7

1

11

4

Net earnings attributable to ADM

$

526

$

225

$

1,927

$

1,085

Diluted earnings per common share

$

0.93

$

0.40

$

3.41

$

1.93

Average diluted shares outstanding

566

562

566

563

Consolidated Statements of Earnings

(unaudited)

Quarter ended Nine months ended

September 30 September 30

2021 2020 2021 2020

(in millions, except per share amounts)



Revenues $ 20,340 $ 15,126 $ 62,159 $ 46,377

Cost of products sold ^(1) 19,014 14,084 57,822 43,276

Gross profit 1,326 1,042 4,337 3,101

Selling, general, and 720 636 2,208 1,938 administrative expenses ^(2)

Asset impairment, exit, and 2 4 84 61 restructuring costs ^(3)

Equity in (earnings) losses (110 ) (160 ) (398 ) (403 )of unconsolidated affiliates

Investment income (20 ) (20 ) (83 ) (94 )

Interest expense^ (4) 61 100 188 270

Other (income) expense - net 20 282 36 202 ^(5,6,7,8)

Earnings before income taxes 653 200 2,302 1,127

Income tax expense (benefit) 120 (26 ) 364 38 ^(9)

Net earnings including 533 226 1,938 1,089 noncontrolling interests



Less: Net earnings (losses)attributable to 7 1 11 4 noncontrolling interests

Net earnings attributable to $ 526 $ 225 $ 1,927 $ 1,085 ADM



Diluted earnings per common $ 0.93 $ 0.40 $ 3.41 $ 1.93 share



Average diluted shares 566 562 566 563 outstanding



(1) Includes a charge related to an inventory writedown of $13 million in the current YTD, and a credit related to changes in the Company's LIFO reserves of $91 million in the prior YTD.

(2) Includes a charge related to a legal settlement of $38 million in the current YTD and $4 million in the prior quarter and YTD. Also includes acquisition-related expenses of $3 million in the current quarter and YTD.

(3) Includes charges related to restructuring of $2 million and impairment and restructuring of $84 million in the current quarter and YTD, respectively, and impairment and restructuring of $4 million and $61 million in the prior quarter and YTD, respectively.

(4) Includes (gains) losses related to the mark-to-market adjustment of the conversion option of the exchangeable bond issued in August 2020 of $(7) million and $(17) million in the current quarter and YTD, respectively, and $15 million in the prior quarter and YTD.

(5) Includes YTD gains related to the sale of certain assets of $22 million, and prior quarter and YTD gains related to the sale of Wilmar shares and certain other assets of $57 million and $80 million, respectively.

(6) Includes exit costs of $2 million in the current YTD.

(7) Includes a settlement charge related to pension liabilities of $1 million and $83 million in the current quarter and YTD, respectively.

(8) Includes a loss on debt extinguishment of $36 million in the current quarter and YTD primarily related to the early redemption of the $500 million 2.75% notes due in 2025. Includes early debt repayment expenses of $396 million and $410 million in the prior quarter and YTD, respectively.

(9) Includes the tax expense (benefit) impact of the above specified items and tax discrete items totaling $(13) million and $(62) million in the current quarter and YTD, respectively, and $(88) million and $(69) million in the prior quarter and YTD, respectively.

^(1) Includes a charge related to an inventory writedown of $13 million in thecurrent YTD, and a credit related to changes in the Company's LIFO reserves of$91 million in the prior YTD.



^(2) Includes a charge related to a legal settlement of $38 million in thecurrent YTD and $4 million in the prior quarter and YTD. Also includesacquisition-related expenses of $3 million in the current quarter and YTD.



^(3) Includes charges related to restructuring of $2 million and impairment andrestructuring of $84 million in the current quarter and YTD, respectively, andimpairment and restructuring of $4 million and $61 million in the prior quarterand YTD, respectively.



^(4) Includes (gains) losses related to the mark-to-market adjustment of theconversion option of the exchangeable bond issued in August 2020 of $(7)million and $(17) million in the current quarter and YTD, respectively, and $15million in the prior quarter and YTD.



^(5) Includes YTD gains related to the sale of certain assets of $22 million,and prior quarter and YTD gains related to the sale of Wilmar shares andcertain other assets of $57 million and $80 million, respectively.



^(6) Includes exit costs of $2 million in the current YTD.



^(7) Includes a settlement charge related to pension liabilities of $1 millionand $83 million in the current quarter and YTD, respectively.



^(8) Includes a loss on debt extinguishment of $36 million in the currentquarter and YTD primarily related to the early redemption of the $500 million2.75% notes due in 2025. Includes early debt repayment expenses of $396 millionand $410 million in the prior quarter and YTD, respectively.



^(9) Includes the tax expense (benefit) impact of the above specified items andtax discrete items totaling $(13) million and $(62) million in the currentquarter and YTD, respectively, and $(88) million and $(69) million in the priorquarter and YTD, respectively.

Summary of Financial Condition

(unaudited)

September 30, 2021

September 30, 2020

(in millions)

Net Investment In

Cash and cash equivalents (a)

$

1,083

$

948

Operating working capital (b)

10,396

8,122

Property, plant, and equipment

9,848

9,816

Investments in and advances to affiliates

5,148

4,771

Goodwill and other intangibles

5,705

5,275

Other non-current assets

2,307

2,167

Net current assets held for sale

130

-

$

34,617

$

31,099

Financed By

Short-term debt (a)

$

314

$

209

Long-term debt, including current maturities (a)

8,620

7,924

Deferred liabilities

3,468

3,540

Temporary equity

225

85

Shareholders' equity

21,990

19,341

$

34,617

$

31,099

Summary of Financial Condition

(unaudited)

September September 30, 30, 2021 2020

(in millions)

Net Investment In

Cash and cash equivalents (a) $ 1,083 $ 948

Operating working capital (b) 10,396 8,122

Property, plant, and equipment 9,848 9,816

Investments in and advances to affiliates 5,148 4,771

Goodwill and other intangibles 5,705 5,275

Other non-current assets 2,307 2,167

Net current assets held for sale 130 -

$ 34,617 $ 31,099

Financed By

Short-term debt (a) $ 314 $ 209

Long-term debt, including current maturities (a) 8,620 7,924

Deferred liabilities 3,468 3,540

Temporary equity 225 85

Shareholders' equity 21,990 19,341

$ 34,617 $ 31,099

(a)

Net debt is calculated as short-term debt plus long-term debt (including current maturities) less cash and cash equivalents.

(b)

Current assets (excluding cash and cash equivalents) less current liabilities (excluding short-term debt and current maturities of long-term debt).

(a) Net debt is calculated as short-term debt plus long-term debt (including current maturities) less cash and cash equivalents.

Current assets (excluding cash and cash equivalents) less current(b) liabilities (excluding short-term debt and current maturities of long-term debt).

Summary of Cash Flows

(unaudited)

Nine months ended

September 30

2021

2020

(in millions)

Operating Activities

Net earnings

$

1,938

$

1,089

Depreciation and amortization

739

727

Asset impairment charges

54

50

(Gains) losses on sales/revaluation of assets

(95

)

(132

)

Other - net

454

561

Change in deferred consideration in securitized receivables(a)

-

(4,603

)

Other changes in operating assets and liabilities

2,763

792

Total Operating Activities

5,853

(1,516

)

Investing Activities

Purchases of property, plant and equipment

(714

)

(558

)

Net assets of businesses acquired

(501

)

(3

)

Proceeds from sale of business/assets

73

708

Investments in retained interest in securitized receivables(a)

-

(2,121

)

Proceeds from retained interest in securitized receivables(a)

-

6,724

Marketable securities - net

1

(1

)

Investments in and advances to affiliates

(7

)

(5

)

Other investing activities

(139

)

(16

)

Total Investing Activities

(1,287

)

4,728

Financing Activities

Long-term debt borrowings

1,330

1,790

Long-term debt payments

(533

)

(2,032

)

Net borrowings (payments) under lines of credit

(1,726

)

(993

)

Share repurchases

-

(117

)

Cash dividends

(626

)

(607

)

Other

1

16

Total Financing Activities

(1,554

)

(1,943

)

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

3,012

1,269

Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period

4,646

2,990

Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period

$

7,658

$

4,259

Summary of Cash Flows

(unaudited)

Nine months ended

September 30

2021 2020

(in millions)

Operating Activities

Net earnings $ 1,938 $ 1,089

Depreciation and amortization 739 727

Asset impairment charges 54 50

(Gains) losses on sales/revaluation of assets (95 ) (132 )

Other - net 454 561

Change in deferred consideration in securitized - (4,603 )receivables^(a)

Other changes in operating assets and liabilities 2,763 792

Total Operating Activities 5,853 (1,516 )



Investing Activities

Purchases of property, plant and equipment (714 ) (558 )

Net assets of businesses acquired (501 ) (3 )

Proceeds from sale of business/assets 73 708

Investments in retained interest in securitized - (2,121 )receivables^(a)

Proceeds from retained interest in securitized - 6,724 receivables^(a)

Marketable securities - net 1 (1 )

Investments in and advances to affiliates (7 ) (5 )

Other investing activities (139 ) (16 )

Total Investing Activities (1,287 ) 4,728



Financing Activities

Long-term debt borrowings 1,330 1,790

Long-term debt payments (533 ) (2,032 )

Net borrowings (payments) under lines of credit (1,726 ) (993 )

Share repurchases - (117 )

Cash dividends (626 ) (607 )

Other 1 16

Total Financing Activities (1,554 ) (1,943 )



Increase (decrease) in cash, cash equivalents, 3,012 1,269 restricted cash, and restricted cash equivalents

Cash, cash equivalents, restricted cash, and restricted 4,646 2,990 cash equivalents - beginning of period

Cash, cash equivalents, restricted cash, and restricted $ 7,658 $ 4,259 cash equivalents - end of period

(a) Cash flows related to the Company's retained interest in securitized receivables as required by ASU 2016-15 which took effect January 1, 2018.

(a) Cash flows related to the Company's retained interest in securitizedreceivables as required by ASU 2016-15 which took effect January 1, 2018.

Segment Operating Analysis

(unaudited)

Quarter ended

Nine months ended

September 30

September 30

2021

2020

2021

2020

(in '000s metric tons)

Processed volumes (by commodity)

Oilseeds

8,509

8,970

26,247

27,236

Corn

5,051

4,084

13,743

13,717

Total processed volumes

13,560

13,054

39,990

40,953

Quarter ended

Nine months ended

September 30

September 30

2021

2020

2021

2020

(in millions)

Revenues

Ag Services and Oilseeds

$

15,689

$

11,527

$

48,967

$

35,347

Carbohydrate Solutions

2,866

2,064

7,909

6,394

Nutrition

1,697

1,451

4,993

4,359

Other Business

88

84

290

277

Total revenues

$

20,340

$

15,126

$

62,159

$

46,377

Segment Operating Analysis

(unaudited)

Quarter ended Nine months ended

September 30 September 30

2021 2020 2021 2020

(in '000s metric tons)

Processed volumes (by commodity)

Oilseeds 8,509 8,970 26,247 27,236

Corn 5,051 4,084 13,743 13,717

Total processed volumes 13,560 13,054 39,990 40,953





Quarter ended Nine months ended

September 30 September 30

2021 2020 2021 2020

(in millions)

Revenues

Ag Services and Oilseeds $ 15,689 $ 11,527 $ 48,967 $ 35,347

Carbohydrate Solutions 2,866 2,064 7,909 6,394

Nutrition 1,697 1,451 4,993 4,359

Other Business 88 84 290 277

Total revenues $ 20,340 $ 15,126 $ 62,159 $ 46,377

Adjusted Earnings Per Share

A non-GAAP financial measure

(unaudited)

Quarter ended September 30

Nine months ended September 30

2021

2020

2021

2020

In millions

Per share

In millions

Per share

In millions

Per share

In millions

Per share

Net earnings and fully diluted EPS

$

526

$

0.93

$

225

$

0.40

$

1,927

$

3.41

$

1,085

$

1.93

Adjustments:

LIFO charge (credit) (a)

-

-

-

-

-

-

(69

)

(0.12

)

Losses (gains) on sales of assets and businesses (b)

-

-

(54

)

(0.10

)

(17

)

(0.03

)

(72

)

(0.13

)

Impairment, restructuring, and settlement charges (c)

3

0.01

5

0.01

167

0.30

49

0.09

Expenses related to acquisitions (d)

2

-

-

-

2

-

-

-

Debt extinguishment charges (e)

27

0.05

300

0.53

27

0.05

311

0.55

Loss (gain) on debt conversion option (f)

(7

)

(0.01

)

15

0.03

(17

)

(0.03

)

15

0.03

Tax adjustment (g)

(3

)

(0.01

)

8

0.02

(4

)

(0.01

)

16

0.03

Sub-total adjustments

22

0.04

274

0.49

158

0.28

250

0.45

Adjusted net earnings and adjusted EPS

$

548

$

0.97

$

499

$

0.89

$

2,085

$

3.69

$

1,335

$

2.38

Adjusted Earnings Per Share

A non-GAAP financial measure

(unaudited)

Quarter ended September 30 Nine months ended September 30

2021 2020 2021 2020

In Per In Per In Per In Per millions share millions share millions share millions share

Net earningsand fully $ 526 $ 0.93 $ 225 $ 0.40 $ 1,927 $ 3.41 $ 1,085 $ 1.93 diluted EPS

Adjustments:

LIFO charge - - - - - - (69 ) (0.12 )(credit) (a)

Losses (gains)on sales of - - (54 ) (0.10 ) (17 ) (0.03 ) (72 ) (0.13 )assets andbusinesses (b)

Impairment,restructuring, 3 0.01 5 0.01 167 0.30 49 0.09 and settlementcharges (c)

Expensesrelated to 2 - - - 2 - - - acquisitions(d)

Debtextinguishment 27 0.05 300 0.53 27 0.05 311 0.55 charges (e)

Loss (gain) ondebt (7 ) (0.01 ) 15 0.03 (17 ) (0.03 ) 15 0.03 conversionoption (f)

Tax adjustment (3 ) (0.01 ) 8 0.02 (4 ) (0.01 ) 16 0.03 (g)

Sub-total 22 0.04 274 0.49 158 0.28 250 0.45 adjustments

Adjusted netearnings and $ 548 $ 0.97 $ 499 $ 0.89 $ 2,085 $ 3.69 $ 1,335 $ 2.38 adjusted EPS



(a)

Prior YTD changes in the Company's LIFO reserves of $(91) million pretax ($69 million after tax), tax effected using the Company's U.S. income tax rate.

(b)

Current YTD gains of $22 million pretax ($17 million after tax) were related to the sale of certain assets, tax effected using the Company's U.S. income tax rate. Prior quarter and YTD gains of $57 million pretax ($54 million after tax) and $80 million pretax ($72 million after tax), respectively, were primarily related to the sale of Wilmar shares and certain other assets, tax effected using the applicable tax rates.

(c)

Current quarter charges of $3 million pretax ($3 million after tax) were related to restructuring and pension settlement, tax effected using the applicable tax rates. Current YTD charges of $220 million pretax ($167 million after tax) were related to the impairment of certain assets, restructuring, and legal and pension settlements, tax effected using the applicable tax rates. Prior quarter and YTD charges of $8 million and $65 million pretax, respectively ($5 million and $49 million after tax, respectively), were related to the impairment of certain assets, restructuring, and a settlement, tax effected using the applicable tax rates.

(d)

Current quarter and YTD expenses of $3 million pretax ($2 million after tax) were related to the Balto acquisition.

(e)

Current quarter and YTD debt extinguishment charges of $36 million pretax ($27 million after tax) were related to the early redemption of notes, tax effected using the Company's U.S. income tax rate. Prior quarter and YTD debt extinguishment charges of $396 million pretax ($300 million after tax) and $410 million pretax ($311 million after tax), respectively, were related to the early repurchase of certain of the Company's debentures, tax effected using the Company's U.S. income tax rate.

(f)

Loss (gain) on debt conversion option of $(7) million and $(17) million pretax ($(7) million and $(17) million after tax) in the current quarter and YTD, respectively, and $15 million pretax ($15 million after tax) in the prior quarter and YTD, was related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020, tax effected using the applicable tax rate.

(g)

Tax adjustment totaling $(3) million and $(4) million in the current quarter and YTD, respectively, and $8 million and $16 million in the prior quarter and YTD, respectively, was related to certain discrete items.

Prior YTD changes in the Company's LIFO reserves of $(91) million pretax(a) ($69 million after tax), tax effected using the Company's U.S. income tax rate.

Current YTD gains of $22 million pretax ($17 million after tax) were related to the sale of certain assets, tax effected using the Company's(b) U.S. income tax rate. Prior quarter and YTD gains of $57 million pretax ($54 million after tax) and $80 million pretax ($72 million after tax), respectively, were primarily related to the sale of Wilmar shares and certain other assets, tax effected using the applicable tax rates.

Current quarter charges of $3 million pretax ($3 million after tax) were related to restructuring and pension settlement, tax effected using the applicable tax rates. Current YTD charges of $220 million pretax ($167 million after tax) were related to the impairment of certain assets,(c) restructuring, and legal and pension settlements, tax effected using the applicable tax rates. Prior quarter and YTD charges of $8 million and $65 million pretax, respectively ($5 million and $49 million after tax, respectively), were related to the impairment of certain assets, restructuring, and a settlement, tax effected using the applicable tax rates.

(d) Current quarter and YTD expenses of $3 million pretax ($2 million after tax) were related to the Balto acquisition.

Current quarter and YTD debt extinguishment charges of $36 million pretax ($27 million after tax) were related to the early redemption of notes, tax effected using the Company's U.S. income tax rate. Prior quarter and YTD(e) debt extinguishment charges of $396 million pretax ($300 million after tax) and $410 million pretax ($311 million after tax), respectively, were related to the early repurchase of certain of the Company's debentures, tax effected using the Company's U.S. income tax rate.

Loss (gain) on debt conversion option of $(7) million and $(17) million pretax ($(7) million and $(17) million after tax) in the current quarter(f) and YTD, respectively, and $15 million pretax ($15 million after tax) in the prior quarter and YTD, was related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020, tax effected using the applicable tax rate.

Tax adjustment totaling $(3) million and $(4) million in the current(g) quarter and YTD, respectively, and $8 million and $16 million in the prior quarter and YTD, respectively, was related to certain discrete items.

Adjusted net earnings reflects ADM's reported net earnings after removal of the effect on net earnings of specified items as more fully described above. Adjusted EPS reflects ADM's fully diluted EPS after removal of the effect on EPS as reported of specified items as more fully described above. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM's performance because they provide investors additional information about ADM's operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item.

Adjusted net earnings reflects ADM's reported net earnings after removal of theeffect on net earnings of specified items as more fully described above.Adjusted EPS reflects ADM's fully diluted EPS after removal of the effect onEPS as reported of specified items as more fully described above. Managementbelieves that Adjusted net earnings and Adjusted EPS are useful measures ofADM's performance because they provide investors additional information aboutADM's operations allowing better evaluation of underlying business performanceand better period-to-period comparability. These non-GAAP financial measuresare not intended to replace or be alternatives to net earnings and EPS asreported, the most directly comparable GAAP financial measures, or any othermeasures of operating results under GAAP. Earnings amounts described above havebeen divided by the company's diluted shares outstanding for each respectiveperiod in order to arrive at an adjusted EPS amount for each specified item.

Adjusted Return on Invested Capital

A non-GAAP financial measure

(unaudited)

Adjusted ROIC Earnings (in millions)

Four Quarters

Quarter Ended

Ended

Dec. 31, 2020

Mar. 31, 2021

June 30, 2021

Sep. 30, 2021

Sep. 30, 2021

Net earnings attributable to ADM

$

687

$

689

$

712

$

526

$

2,614

Adjustments:

Interest expense

69

87

40

61

257

Other adjustments

1

99

95

39

234

Total adjustments

70

186

135

100

491

Tax on adjustments

(22

)

(45

)

(32

)

(24

)

(123

)

Net adjustments

48

141

103

76

368

Total Adjusted ROIC Earnings

$

735

$

830

$

815

$

602

$

2,982

Adjusted Return on Invested Capital

A non-GAAP financial measure

(unaudited)

Adjusted ROIC Earnings (in millions)

Four Quarters

Quarter Ended Ended

Dec. 31, Mar. 31, June 30, Sep. 30, Sep. 30, 2020 2021 2021 2021 2021



Net earnings $ 687 $ 689 $ 712 $ 526 $ 2,614 attributable to ADM

Adjustments:

Interest expense 69 87 40 61 257

Other adjustments 1 99 95 39 234

Total adjustments 70 186 135 100 491

Tax on adjustments (22 ) (45 ) (32 ) (24 ) (123 )

Net adjustments 48 141 103 76 368

Total Adjusted ROIC $ 735 $ 830 $ 815 $ 602 $ 2,982 Earnings



Adjusted Invested Capital (in millions)

Quarter Ended

Trailing Four

Dec. 31, 2020

Mar. 31, 2021

June 30, 2021

Sep. 30, 2021

Quarter Average

Equity (1)

$

20,000

$

20,841

$

21,582

$

21,969

$

21,098

+ Interest-bearing liabilities (2)

9,937

11,208

9,729

8,941

9,954

Other adjustments

(5

)

74

72

29

43

Total Adjusted Invested Capital

$

29,932

$

32,123

$

31,383

$

30,939

$

31,095

Adjusted Return on Invested Capital

9.6

%

Adjusted Invested Capital (in millions)



Quarter Ended Trailing Four

Dec. 31, Mar. 31, June 30, Sep. 30, Quarter 2020 2021 2021 2021 Average



Equity ^(1) $ 20,000 $ 20,841 $ 21,582 $ 21,969 $ 21,098

+ Interest-bearing 9,937 11,208 9,729 8,941 9,954 liabilities ^(2)

Other adjustments (5 ) 74 72 29 43

Total Adjusted $ 29,932 $ 32,123 $ 31,383 $ 30,939 $ 31,095 Invested Capital





Adjusted Return on Invested 9.6 %Capital

(1) Excludes noncontrolling interests

(2) Includes short-term debt, current maturities of long-term debt, finance lease obligations, and long-term debt

Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital. Adjusted ROIC earnings is ADM's net earnings adjusted for the after-tax effects of interest expense and specified items. Adjusted invested capital is the sum of ADM's equity (excluding noncontrolling interests) and interest-bearing liabilities adjusted for the after-tax effect of specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM's returns excluding the impacts of specified items and increases period-to-period comparability of underlying business performance. Management uses Adjusted ROIC to measure ADM's performance by comparing Adjusted ROIC to its weighted average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP financial measures and are not intended to replace or be alternatives to GAAP financial measures.

^(1) Excludes noncontrolling interests

^(2) Includes short-term debt, current maturities of long-term debt, financelease obligations, and long-term debt



Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital.Adjusted ROIC earnings is ADM's net earnings adjusted for the after-tax effectsof interest expense and specified items. Adjusted invested capital is the sumof ADM's equity (excluding noncontrolling interests) and interest-bearingliabilities adjusted for the after-tax effect of specified items. Managementbelieves Adjusted ROIC is a useful financial measure because it providesinvestors information about ADM's returns excluding the impacts of specifieditems and increases period-to-period comparability of underlying businessperformance. Management uses Adjusted ROIC to measure ADM's performance bycomparing Adjusted ROIC to its weighted average cost of capital (WACC).Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital arenon-GAAP financial measures and are not intended to replace or be alternativesto GAAP financial measures.

Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)

A non-GAAP financial measure

(unaudited)

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the trailing four quarters ended September 30, 2021.

Four Quarters

Quarter Ended

Ended

Dec. 31, 2020

Mar. 31, 2021

June 30, 2021

Sep. 30, 2021

Sep. 30, 2021

(in millions)

Earnings before income taxes

$

756

$

824

$

825

$

653

$

3,058

Interest expense

69

87

40

61

257

Depreciation and amortization

249

249

243

247

988

Losses (gains) on sales of assets and businesses

(10

)

-

(22

)

-

(32

)

Asset impairment, exit, restructuring, and settlement charges

27

99

118

3

247

Railroad maintenance expense

37

-

3

31

71

Debt extinguishment charges

(1

)

-

-

36

35

Expenses related to acquisitions

4

-

-

3

7

Adjusted EBITDA

$

1,131

$

1,259

$

1,207

$

1,034

$

4,631

Four Quarters

Quarter Ended

Ended

Dec. 31, 2020

Mar. 31, 2021

June 30, 2021

Sep. 30, 2021

Sep. 30, 2021

(in millions)

Ag Services and Oilseeds

$

926

$

871

$

661

$

711

$

3,169

Carbohydrate Solutions

284

342

467

297

1,390

Nutrition

185

209

253

230

877

Other Business

(14

)

11

7

(3

)

1

Corporate

(250

)

(174

)

(181

)

(201

)

(806

)

Adjusted EBITDA

$

1,131

$

1,259

$

1,207

$

1,034

$

4,631

Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization(EBITDA)

A non-GAAP financial measure

(unaudited)



The tables below provide a reconciliation of earnings before income taxes toadjusted EBITDA and adjusted EBITDA by segment for the trailing four quartersended September 30, 2021.

Four Quarters

Quarter Ended Ended

Dec. 31, Mar. 31, June 30, Sep. 30, Sep. 30, 2020 2021 2021 2021 2021

(in millions)

Earnings before $ 756 $ 824 $ 825 $ 653 $ 3,058 income taxes

Interest expense 69 87 40 61 257

Depreciation and 249 249 243 247 988 amortization

Losses (gains) onsales of assets and (10 ) - (22 ) - (32 )businesses

Asset impairment,exit, restructuring, 27 99 118 3 247 and settlementcharges

Railroad maintenance 37 - 3 31 71 expense

Debt extinguishment (1 ) - - 36 35 charges

Expenses related to 4 - - 3 7 acquisitions

Adjusted EBITDA $ 1,131 $ 1,259 $ 1,207 $ 1,034 $ 4,631





Four Quarters

Quarter Ended Ended

Dec. 31, Mar. 31, June 30, Sep. 30, Sep. 30, 2020 2021 2021 2021 2021

(in millions)

Ag Services and $ 926 $ 871 $ 661 $ 711 $ 3,169 Oilseeds

Carbohydrate 284 342 467 297 1,390 Solutions

Nutrition 185 209 253 230 877

Other Business (14 ) 11 7 (3 ) 1

Corporate (250 ) (174 ) (181 ) (201 ) (806 )

Adjusted EBITDA $ 1,131 $ 1,259 $ 1,207 $ 1,034 $ 4,631



Adjusted EBITDA is defined as earnings before taxes, interest, and depreciation and amortization, adjusted for specified items. The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense and depreciation and amortization to earnings before income taxes. Management believes that adjusted EBITDA is a useful measure of the Company's performance because it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to earnings before income taxes, the most directly comparable GAAP financial measure.

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