Archer-Daniels-Midland Company (ADM) Conference Call Summary Company Overview - **Company**: Archer-Daniels-Midland Company (NYSE: ADM) - **Industry**: Agriculture and Nutrition - **Conference Date**: September 21, 2021 - **Participants**: Juan Luciano (CEO), Tom Simonitsch (J.P. Morgan Analyst) Key Points Strategic Transformation and Business Focus - ADM has undergone significant transformation over the last decade, evolving from a focus on feed and grain merchandising to becoming a global leader in human and animal nutrition [4][6] - The company has optimized its cost structure and solidified its position in the global food supply chain, enhancing its ability to generate strong operating cash flows [5][6] Financial Performance and Growth Expectations - ADM reported approximately 10% returns in Q2 2021, with expectations for a strong second half driven by U.S. export demand and good crop yields [8][9] - The company raised its nutrition guidance to 20% year-over-year growth for 2021 and increased its base earnings power from $3 per share to a range of $4 to $4.50 per share [9][10] - ADM anticipates sustainable growth at a high single-digit percentage rate per year over the next five years, driven by productivity and innovation [10][11] Investment in Nutrition and Sustainability - ADM has invested approximately $6 billion in building its nutrition business, which has become a partner of choice for customers [6][7] - The company is focusing on sustainability, with initiatives such as carbon sequestration and achieving zero carbon in U.S. flour milling operations [21][22][23] - ADM is involved in sustainable agriculture programs covering over 13 million acres, promoting practices like no-till farming [22] Market Dynamics and Demand Drivers - Strong demand for plant-based proteins and biofuels is expected to drive growth, with the company seeing a shift in consumer preferences towards sustainable and nutritious products [19][30] - ADM expects China to remain a significant importer of U.S. corn and soybeans, with food security being a top priority for the Chinese government [28][31] Acquisitions and Partnerships - Recent acquisitions include a 75% stake in PetDine, a private label provider of pet treats, and investments in plant protein producers [12][46] - The company is expanding its capabilities in biomaterials and biofuels, including a partnership with Marathon for sustainable fuel production [34][35] Future Outlook and Investor Engagement - ADM plans to unveil its next five-year strategy at the Global Investor Day on December 10, focusing on productivity and innovation to drive earnings growth [57] - The company maintains a strong commitment to returning capital to shareholders, with a dividend payout ratio expected to be in the 30% to 40% range [55] Additional Insights - The company is pivoting from a focus on Return on Invested Capital (ROIC) to driving Economic Value Added (EVA) by growing earnings per share [14][18] - ADM is strategically de-risking investments through partnerships and joint ventures to maintain disciplined returns while expanding capacity [52][54] This summary encapsulates the key insights from the conference call, highlighting ADM's strategic direction, financial performance, and market opportunities.

Archer-Daniels-Midland Company (NYSE:ADM) Barclays Global Consumer Staples Conference Call September 9, 2021 1:20 PM ET Company Participants Leticia Goncalves - President of Global Specialty Ingredients Vikram Luthar - SVP, Head of IR & CFO of Nutrition Conference Call Participants Benjamin Theurer - Barclays Benjamin Theurer Thank you very much. And welcome back. Next on stage, we have Archer Daniels Midland, which is a global leader in human and animal nutrition and the world's premier agricultural origi ...

Archer-Daniels-Midland Company (NYSE:ADM) Q2 2021 Earnings Conference Call July 27, 2021 9:00 AM ET Company Participants Vikram Luthar - Senior Vice President, Head of Investor Relations & Chief Financial Officer of Nutrition Business Juan Luciano - Chairman & Chief Executive Officer Ray Young - Chief Financial Officer Conference Call Participants Adam Samuelson - Goldman Sachs Luke Washer - Bank of America Ken Zaslow - Bank of Montreal Michael Piken - Cleveland Research Tom Simonitsch - JPMorgan Robert Mos ...

Archer-Daniels-Midland Company (NYSE:ADM) Stifel 2021 Virtual Cross Sector Insight Conference June 9, 2021 1:20 PM ET Company Participants Ray Young - CFO Conference Call Participants Vincent Anderson - Stifel Vincent Anderson All right, thank you everyone for joining us today. My name is Vincent Anderson, I'm Director of Materials Researcher at Stifel. And I'm very thrilled to be hosting again, Ray Young from Archer-Daniels-Midland, CFO. Ray, would you like to make some opening remarks? Ray Young Yes, than ...

Archer-Daniels-Midland Company (NYSE:ADM) DbAccess Global Consumer Conference Call June 7, 2021 12:00 PM ET Company Participants Vince Macciocchi - Senior Vice President and President of Nutrition Conference Call Participants Steve Powers - Deutsche Bank Steve Powers Good afternoon and good evening everybody. I’m Steve Powers, Head of Deutsche Bank's U.S. Consumer Goods Research, and I'm thrilled today to welcome ADM to our conference. Joining us today from ADM are Vince Macciocchi, ADM’s Senior Vice Presid ...

Archer-Daniels-Midland Company (ADM) Conference Call Summary Company Overview - Archer-Daniels-Midland Company (NYSE: ADM) has transformed from a basic commodity merchandiser to a leader in nutrition with approximately 800 facilities globally [4][5] - The company has focused on aligning its operations with consumer needs through insights and research [4] Core Strategies and Financial Performance - ADM's strategy is built on three pillars: optimizing the portfolio, driving efficiencies, and strategic expansion [6] - The company aims for a 10% Return on Invested Capital (ROIC) and earnings per share (EPS) of $4 to $4.50 [6][17] - In Q1, ADM reported an adjusted EPS of $1.39, following a record 2020 EPS of $3.59 [6] - The trailing fourth quarter adjusted ROIC was 9%, exceeding the weighted cost of capital by 375 basis points [7] Focus on Productivity and Innovation - ADM is shifting its focus to a balanced approach of 50% productivity and 50% innovation to achieve sustainable earnings growth [8] - The company is implementing a unified ERP platform (1ADM) to enhance decision-making and data utilization [9] - Digital tools and artificial intelligence are being leveraged to improve customer experience and sales efficiency [10] Growth Platforms - ADM is targeting high-value markets such as microbiome, sustainable solutions (BioSolutions), and alternative proteins [12][13] - The microbiome market is projected to expand significantly, with ADM holding a strong position in postbiotics [12] - The BioSolutions segment is expected to grow at approximately 7% annually, with current sales around $1.5 billion and operating profit of $250 million [12][20] Market Dynamics and Opportunities - Structural changes in the industry, particularly in China, are driving demand for grains and soybean meal [26][27] - The renewable green diesel market presents a significant opportunity, with an expected demand increase of 2 to 3 billion gallons over the next several years [30] - ADM is strategically positioned to benefit from this demand through projects like the Spiritwood facility in North Dakota [32] Challenges and Future Outlook - The company anticipates challenges related to corn prices and market conditions but remains optimistic about maintaining margins and growth [41][42] - The path to achieving $1 billion in operating profit in the Nutrition segment by 2024 is still on track, focusing on organic growth rather than M&A [46] - ADM's confidence in sustainable earnings growth is supported by a strong culture of continuous improvement, technological advancements, and operational efficiencies [48] Conclusion - ADM is well-positioned for future growth through its strategic focus on productivity, innovation, and market responsiveness, with a strong emphasis on sustainability and consumer trends [14][48]

Archer-Daniels-Midland Company (NYSE:ADM) Q1 2021 Earnings Conference Call April 27, 2021 9:00 AM ET Company Participants Victoria de la Huerga - Vice President, Investor Relations Juan Luciano - Chairman, President, Chief Executive Officer Ray Young - Executive Vice President, Chief Financial Officer Conference Call Participants Ken Zaslow - Bank of Montreal Adam Samuelson - Goldman Sachs Tom Simonitsch - JPMorgan Luke Washer - Bank of America Robert Moskow - Credit Suisse Ben Bienvenu - Stephens Michael P ...