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The statements
Th t t t are based
b d on many assumptions
ti andd ffactors,
t
including availability and prices of raw materials, market
conditions, operating efficiencies, access to capital and actions of
governments. Any changes in such assumptions or factors could
produce significantly different results. To the extent permitted
under applicable law
law, the Company assumes no obligation to
update any forward-looking statements as a result of new
information or future events.
2
Table of Contents
Page
9 Global Trends 4
9 ADM Assets 5
9Oilseeds 14 – 21
9 Corn Processing 22 – 30
9 Profitable Growth 35 – 41
9 Appendix
pp 42 – 54
3
Global Trends Signal Growth Opportunity
Population Growth
Growing Interest
in Environmental
Improvement
4
ADM’s Assets are Positioned for Global Growth
Sourcing facilities
Oilseed processing
Corn processing
Cocoa & wheat processing
Wilmar
Sourcing distribution
Processing distribution
5
We are Leveraging our Value Chain and
Executingg our Strategy
gy
Expand the Size and Global Reach of our Core Model
CROPS VALUE‐ADDED
SOURCE TRANSPORT PROCESS TRANSFORM DISTRIBUTE MARKET & PRODUCTS
SELL
Oilseeds
Corn Food
Cocoa Feed
Wheat Fuel
Palm Industrials
Sugar
Our Financial Strength and Industry Acumen Underpin the Chain and Drive Value
6
We are Expanding Volumes and Diversifying
Feedstocks
Expand the Size and Global Reach of our Core Model
CROPS VALUE‐ADDED
SOURCE TRANSPORT PROCESS TRANSFORM DISTRIBUTE MARKET & PRODUCTS
SELL
Oilseeds
Corn Food
Cocoa Feed
Wheat Fuel
Palm Industrials
Sugar
Our Financial Strength and Industry Acumen Underpin the Chain and Drive Value
7
We are Growing the Size and Geographic
Reach of our Footprint
p
Expand the Size and Global Reach of our Core Model
CROPS VALUE‐ADDED
SOURCE TRANSPORT PROCESS TRANSFORM DISTRIBUTE MARKET & PRODUCTS
SELL
Oilseeds
Corn Food
Cocoa Feed
Wheat Fuel
Palm Industrials
Sugar
Our Financial Strength and Industry Acumen Underpin the Chain and Drive Value
8
We are Expanding Volumes and Diversifying our
Product Portfolio
Expand the Size and Global Reach of our Core Model
CROPS VALUE‐ADDED
SOURCE TRANSPORT PROCESS TRANSFORM DISTRIBUTE MARKET & PRODUCTS
SELL
Oilseeds
Corn Food
Cocoa Feed
Wheat Fuel
Palm Industrials
Sugar
Our Financial Strength and Industry Acumen Underpin the Chain and Drive Value
9
Growing Origination and
Transportation Capabilities
10
Our People use Industry Acumen and our Asset
Network to Create Value
1111
Our Strategy is to Expand our Crop Origination and
Transportation Network; Grow Destination Business
12
We are Executing our Origination and
p
Transportation Strategy
gy
• Purchased five
oceangoing vessels
• Modernizing North
American barge fleet
• Adding barges and
tugboats in South
America
•E
Expanding
di S Southth
American origination
13
Oilseeds:
E
Expanding
di Processing
P i
Capabilities
14
Our Oilseeds Asset Base is Positioned to Meet
Growingg Global Demand
Fertilizer
g
Origination
Biodiesel
Refining/Packing
Processing
Wilmar
1515
In North America, Diverse Inputs and Broad
Product Portfolio Create Value
Lecithin
Raw
Material Gums Refine Sterols
Soybean Vit i E
Vitamin
Sunflower
Canola Crude Transesterification Biodiesel
Flax Refine
Oil Interesterification Shortening
Cottonseed
Peanut Hydrogenation Margarine
Palm Oil Oil
Oil
Protein Protein
Raw
Material Transesterification Biodiesel
Refine
Sunflower Glycerin
Rapeseed Oil
Soybean Crude
Palm Oil Interesterification Shortening
Oil
Hydrogenation Margarine
Process Oil
P t i
Protein
Refine
Soy
S
Concentrate
1717
Using South American Harvests, we serve
both Local and Global Markets
Crop O
C Origination/
i i ti /
Merchandising
R fi
Refine Oil
Crop
Prefinancing
Seed
Crop Nutrients
Crop Protection Crude Oil Transesterification Biodiesel
Raw Material
Soybean Process Protein
Sunflower
1818
We Participate in Growing Asian Markets
g our Strategic
through g Partner
• 16% eq
equity
it stake in Asia’s
largest agricultural processor
• Seat
S t on board
b d off directors
di t
• Supply and sales agreements
19
Oilseeds Strategies are Regionally Focused
• North America
- Grow value-added business
- Expand destination feed business
• South America
- Grow origination and logistics capabilities
- Expand
p p
processing
g capacities
p
• Europe and India
- Grow origination and logistics capabilities
- Increase processing capacities and flexibility
- Grow value
value-added
added business
20
We are Increasing Processing Capacity and
Efficiencyy for Long-Term
g Demand
• North America
- Expanding crushing capacities,
refining, low-trans production
• South America
- Added fertilizer blending capacity
- Acquired vegetable oil bottling facility
- Expanding biodiesel capacity
• Europe
- Acquired processing plants in Czech
Republic and southern Germany
21
Corn Processing:
Expanding Processing/
Transforming Capabilities
22
ADM has a Competitive Advantage in Corn Processing
Dry Mill
Wet Mill
Sugarcane Ethanol
Corn Joint Ventures
2323
Corn Processing Production Flexibility Enhances Value
CORN SYRUP
SYRUP, HIGH FRUCTOSE CORN SYRUP
Additional Products
24
Our Broad Product Line Serves a Wide
Range of Markets
2525
We are Well-Positioned to Serve the Growing Ethanol Market
ADM Plants
Terminals
2626
Ethanol Demand Exceeds RFS Requirements
16
14
Actual
12
RFS
10
ons
Billion Gallo
0
1H07 2H07 1H08 2H08 1H09 2H09 2010 2015
Calendar Year
Source: EIA
27
HFCS Remains an Important Product and an
g
Attractive Alternative to Sugar
28
Our Strategy is to Leverage our Processing
p
Expertise and Diversifyy Feedstocks
‐ Advanced biofuels
•O
Optimize
ti i the
th flexibility
fl ibilit off our processing
i D t
Dextrose
operations
29
We are Increasing Processing Capacity
and Efficiencyy
Corn
• Operating
p g Columbus dry
y mill
• Expanding Decatur swing capacity
between ethanol and corn syrups
• Completed construction of Clinton
and Columbus co-gen plants
• Growing
G i product
d t portfolio
tf li
• Reducing plant production costs
Sugar
• Producing ethanol at first Brazilian mill
30
Cocoa and Wheat:
Expanding Processing /
Transforming Capabilities
31
We are a Leader in Cocoa Processing
Processing Plant
Buying Station
3232
We are the Leading Flour Miller in North America,
and a Leader in the UK
3333
Cocoa and Milling Strategies Target Profit Growth
34
Focusing on Profitable Growth
35
Our Diversified Portfolio Drives Earnings Growth
Oilseed Processing
g g
Corn Processing Ag
g Services Other
36
A Decade of Earnings Growth
(A t iin millions)
(Amounts illi )
$2,500
$2 000
$2,000
$1,500
2,291
2,156
$1,000
1,305 1,385
973 1,049 $500
512 569
383 460
301
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
6 months
(1)
Earnings, as reported
37
ADM is Committed to Profitable Growth
38
Financial Returns
$20 20%
$16 16%
Net Asset Base ($B)
$12 12%
$8 8%
$4 4%
39
ADM: Vital to the World
• Our p
people
p enhance the
value of our global assets
•O
Our business
b i portfolio
tf li iis
diverse and strong
40
Vital to the World
A
Appendix
di
42
Financial Highlights
(Amounts in millions, except per share data and percentages)
LIFO impact per share (net of tax)(1) $ (0.05) $ 0.12 $ (0.17) $ 0.02 $ 0.56 $ (0.54)
Q2FY10 Net Earnings and Earnings Per Share Analysis FY10 Year-to-Date Net Earnings and Earnings Per Share Analysis
43
Statement of Earnings Summary
(Amounts in millions, except per share data and percentages) Quarter Ended Six Months Ended
December 31 December 31
(1) (1)
2009 2008 Change 2009 2008 Change
Net sales and other
$ 15,913 $ 16,673 (5%) $ 30,834 $ 37,833 (18%)
operating income
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Gross p
profit 1,053 1,212 ((13%)) 2,026 3,079 ((34%))
Net earnings including noncontrolling interests 561 579 (3%) $ 1,058 $ 1,625 (35%)
44
Segment Operating Profit Summary
(A
(Amounts
t iin millions)
illi ) Quarter Ended Six Months Ended
December 31 December 31
2009 2008 Change 2009 2008 Change
Oilseeds Processing
Crushing & Origination $ 193 $ 187 $ 328 $ 526
Refining Packaging
Refining, Packaging, Biodiesel & Other 76 86 146 192
Asia 83 46 162 111
352 319 $ 33 636 829 $ (193)
Corn Processing
Sweeteners & Starches 171 140 365 205
Bioproducts 119 (111) 113 (58)
290 29 261 478 147 331
Agricultural Services
Merchandising & Handling 103 385 260 770
Transportation 47 77 65 120
150 462 (312) 325 890 (565)
Other
Processing 159 51 266 154
Financial 19 (46) 39 (29)
178 5 173 305 125 180
(1)
Total Segment Operating Profit $ 970 $ 815 $ 155 $ 1,744 $ 1,991 $ (247)
45
Our Balance Sheet is Strong
(Amounts in millions)
December 31 June 30
2009 2009
Cash(1) $ 1,634 $ 1,555
Net property, plant and equipment 8,636 7,950
46
Cash Flow Summary
(Amounts in millions) Six Months Ended
December 31
2009 2008(1)
Cash from operations before working capital changes $ 1,660 $ 1,572
Changes in working capital (280) 4,293
Purchases of property, plant and equipment (939) (1,069)
Business acquisitions (57) (24)
Business disposals - 237
Marketable securities 198 (737)
Debt increase/(decrease) - net (166) (2,612)
Dividends (180) (167)
Stock buyback - (100)
Other 26 45
47
Summary of Specified Items
((Amounts in millions))
Quarter ended
December 31, 2009
LIFO charge $ - $ - $ - $ - $ (54) $ (54) $ (34)
Quarter ended
December 31, 2008
LIFO credit $ - $ - $ - $ - $ 123 $ 123 $ 77
Asset impairments - - - (9) - (9) (6)
Gain on asset and business disposal - - - - 7 7 4
48
Oilseeds Processing is Globally Balanced
and Positioned to Grow
• 93,000 MT/day oilseeds capacity
- 52% North America (78% soybean
soybean, 22% softseed)
• Asia
Asia-Wilmar
Wilmar ownership (16% equity ownership)
• 22 MM MT/yr protein meal capacity
• 7.7 MM MT/yr vegetable oil capacity
• 1.6 MM MT/yr biodiesel capacity
49
Corn Processing’s Diversified Product
Portfolio Enhances Value
• 60,000 MT/day capacity in North America
- 5 wet mills,
mills 3 dry mills
• Leading positions in
- corn sweeteners
- ethanol
- starches and amino acids
• JV growth opportunities
- Eastern Europe
- Mexican HFCS
50
We are a Leading Flour Miller in the U.S. and U.K.
and a Leading Global Cocoa Processor
- North America/Caribbean
- Europe
51
LIFO Adjusted RONA Assets – FY2010
((Amounts in millions))
Total LIFO adjusted RONA Assets $ 16,099 $ 17,178 $ 16,456 $ 18,311 $ 17,011
52
LIFO Adjusted RONA Earnings – FY2010
((Amounts in millions))
Four Quarters
Quarter Ended Ended
(1) (1)
Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Dec 31, 2009
Net earnings attributable to ADM $ 2 $ 58 $ 496 $ 567 $ 1,123
Adjustments
53
Notes: Non-GAAP Reconciliation and
Restatement Information
(1) The Company uses certain “Non-GAAP” financial measures as defined by the Securities and Exchange Commission. These are
measures of performance not defined by accounting principles generally accepted in the United States, and should be considered
in addition to, not in lieu of, GAAP reported measures.
LIFO impact per share (net of tax) and Earnings (ex LIFO)
The Company values certain inventories using the lower of cost, determined by either the first-in, first-out (FIFO) or last-in, first-
out (LIFO) methods, or market. This document contains non-GAAP financial measures, including the after tax impact of LIFO on
dil t d earnings
diluted i per share
h and
d LIFO adjusted
dj t d return
t on nett assets.
t W We b
believe
li th
the iinclusion
l i off th
the iimpactt off changes
h iin th
the LIFO
reserve, net of tax, in this document helps investors gain a meaningful understanding of operating results, and is consistent with
how management measures the Company's performance, especially when comparing such results to prior periods.
((2)) Earnings
g for FY2009 have been restated following g the adoption
p of ASC Topic
p 470-20 - Debt with Conversion and Other Options,
p ,
and ASC Topic 810 – Consolidation. Effective July 1, 2009, the Company adopted this amended guidance which required
retrospective application to all periods presented.
54