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Vital to the World
Citi’s Annual Food Fest
December 1, 2010
Steve Mills John Rice Ray Young Dwight Grimestad
Senior Executive VP Vice Chairman, Office of the Chairman SVP & CFO VP, Investor Relations
Safe Harbor Statement
Some of our comments constitute forward-looking statements that
reflect management’s current views and estimates of future
economic circumstances, industry conditions, Company
performance and financial results.
The statements are based on many assumptions and factors,
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, the Company assumes no obligation to
update any forward-looking statements as a result of new
information or future events.
2
Table of Contents
Slide
Global Trends 5
ADM’s Value Chain and Strategy 6
ADM Assets 7
Origination and Transportation 8 – 11
Oilseeds 12 – 19
Corn Processing 20 – 28
Cocoa and Wheat 29 – 30
Profitable Growth 31 – 38
Appendix 39 – 51
3
4
Global Trends Signal Growth Opportunity
Population Growth
Need for Energy Security
and Diversity
Growing Interest
in Environmental
Improvement
5
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
Expand Volumes and Expand Size and Expand Volumes
Diversify Crops Geographic Reach and Diversify
Product Portfolio
6
ADM’s Assets are Positioned for Global Growth
Sourcing facilities
Oilseed processing
Corn processing
Cocoa & wheat processing
Wilmar
Sourcing distribution
Processing distribution
7
Growing Origination and
Transportation Capabilities
8
Our People use Industry Acumen and our Asset
Network to Create Value
9
9
Our Strategy is to Expand our Crop Origination and
Transportation Network; Grow Destination Business
• Build on leadership position in the U.S. and South America
• Selectively add elevators
• Improve elevator throughput
• Enhance port and river capabilities
• Grow origination footprint in Canada and Europe
• Expand destination market opportunities in Middle East,
Asia and Africa
10
We are Executing our Origination and
Transportation Strategy
• Purchased
oceangoing vessels
• Modernizing North
American barge fleet
• Adding barges
and tugboats in
South America
• Expanding South
American origination
11
Oilseeds:
Growing Processing
Capabilities
12
Our Oilseeds Asset Base is Positioned to Meet
Growing Global Demand
Fertilizer
Origination
Biodiesel
Refining/Packing
Processing
Wilmar
13
13
In North America, Diverse Inputs and a Broad
Product Portfolio Create Value
Lecithin
Raw
Material Gums Refine Sterols
Soybean Vitamin E
Sunflower
Canola Crude Transesterification Biodiesel
Flax Refine
Oil Interesterification Shortening
Cottonseed
Peanut Hydrogenation Margarine
Palm Oil Oil
Oil
Protein Protein
Process Soy Flour/
Refine
Cotton Flour
Soy
Concentrate
Soy Isolate
Texturize TVP / TVC
Cotton
Refine Cellulose
Lint
14
14
We serve Europe using Local Softseeds as well as
Imported Soybeans and Processed Products
Gums Refine Lecithin
Raw
Material Transesterification Biodiesel
Refine
Sunflower Glycerin
Rapeseed Oil
Soybean Crude
Palm Oil Interesterification Shortening
Oil
Hydrogenation Margarine
Process Oil
Protein
Refine
Soy
Concentrate
15
15
Using South American Harvests, we serve
both Local and Global Markets
Crop Origination/
Merchandising
Refine Oil
Crop
Prefinancing
Seed
Crop Nutrients
Crop Protection Crude Oil Transesterification Biodiesel
Raw Material
Soybean Process Protein
Sunflower
16
16
We Participate in Growing Asian Markets
through our Strategic Partner
• 16% equity stake in Asia’s
largest agricultural processor
• Seat on board of directors
• Supply and sales agreements
17
Our Oilseeds Strategies are Regionally Focused
• North America
- Grow value-added business
- Increase plant efficiencies
• South America
- Grow origination and logistics capabilities
- Expand processing capacities
• Europe and India
- Grow origination and logistics capabilities
- Increase processing capacities and flexibility
18
We are Increasing Processing Capacity and
Efficiency for Long-Term 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
- Added processing flexibility
19
Corn Processing:
Growing Processing/
Transforming Capabilities
20
ADM has a Competitive Advantage in Corn Processing
Dry Mill
Wet Mill
Sugarcane Ethanol
Corn Joint Ventures
21
21
Corn Processing Production Flexibility Enhances Value
CORN SYRUP, HIGH FRUCTOSE CORN SYRUP
Dextrose (Liquid and Crystalline), Maltodextrin
Starch
Xanthan Gum, Citric Acid, Lactic Acid, Yeast
Sorbitol (Liquid and Crystalline)
Propylene Glycol, Ethylene Glycol
Isosorbide – Pilot Scale
Lysine, Threonine, Astaxanthin
Corn Oil
FUEL ALCOHOL
Gluten Feed
Food and Industrial Starches
Gluten Meal Ethyl Lactate
PHA (Bioplastic)
Additional Products
22
Our Broad Product Line Serves a Wide
Range of Markets
23
23
We are Well-Positioned to Serve the Growing Ethanol Market
ADM Plants
Terminals
24
24
Ethanol Demand Exceeds RFS Requirements
16
14
Actual
12
RFS
10
Billion Gallons
8
6
4
2
0
2H07 1H08 2H08 1H09 2H09 1H10 2H10 2015
Calendar Year
Source: EIA
25
HFCS Remains an Important Product and an
Attractive Alternative to Sugar
• HFCS has broader functionality than sucrose
• Relative to sugar, HFCS saves the food industry
billions of dollars each year
• Nutritionally, HFCS is the same as sugar or honey*
• Positive HFCS volume growth on strong
exports to Mexico
*Appendix Slide 48 compares HFCS with other sweeteners
26
Our Strategy is to Leverage our Processing Expertise
and Diversify Feedstocks/Product Portfolio
• Increase the diversity of our product portfolio
‐ Industrial chemicals
‐ Advanced biofuels
• Optimize the flexibility of our processing Dextrose
operations
• Build or acquire carbohydrate processing in
key regions around the world
27
We are Increasing Processing Capacity
and Efficiency
Corn
• Operating Columbus and
Cedar Rapids dry mill
• Expanded Decatur swing capacity
between ethanol and corn syrups
• Completed construction of Clinton
and Columbus co-gen plants
• Growing product portfolio
• Reducing plant production costs
Sugar
• Producing ethanol at first Brazilian mill
28
Cocoa and Wheat:
Growing Processing /
Transforming Capabilities
29
We are a Leader in Cocoa Processing
Processing Plant
Buying Station
30
30
We are the Leading Flour Miller in North America,
and a Leader in the UK
Wheat & Durum Milling
Dry Corn Milling
Milo & Sorghum Milling
Bulgur Milling
Rice Milling
Dry Sweeteners
31
31
Cocoa and Milling Strategies Target Profit Growth
• Cocoa: Gain efficiencies from the integration of
Schokinag, Ghana and Hazelton, PA.
• Milling: Improve efficiencies of existing facilities
32
Focusing on Profitable Growth
33
Our Diversified Portfolio Drives Earnings Growth
FY08 FY09* FY10
Oilseed Processing Corn Processing Ag Services Other
* Other results in FY09 were a loss of $6M
34
A Decade of Earnings Growth
(Amounts in millions)
$2,500
$2,000
$1,500
2,283
2,134
$1,000
1,904
1,305 1,362
973 $500
512 569
383 460
301
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Adjusted for LIFO
35
Historical ROIC and WACC Trend
Q111
18% Trailing 4Q LIFO Adjusted ROIC Earnings $2.1B
Trailing 4Q LIFO Adjusted Average Invested Capital $22.7B
16%
Trailing 4Q Average ROIC(1) 9.4%
Trailing 4Q Average WACC 7.2%
14%
12%
10%
8%
6%
4%
2%
0%
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111
(1)
Trailing 4Q Average ROIC Trailing 4Q Average WACC
(1)Adjusted for LIFO
36
ADM: Vital to the World
• Global trends offer
opportunity for growth
• Our global asset base is
positioned to capture value
• Our people enhance the
value of our global assets
• Our business portfolio is
diverse and strong
37
Vital to the World
Appendix
39
Financial Highlights
(Amounts in millions, except per share data and percentages)
Quarter Ended
September 30
2010 2009 Change
Segment operating profit(1) $ 765 $ 774 $ (9)
Net earnings attributable to ADM $ 345 $ 496 $ (151)
Earnings per share $ 0.54 $ 0.77 $ (0.23)
Effective income tax rate 26.0% 30.7%
LIFO impact per share (net of tax) (1) $ (0.12) $ 0.07 $ (0.19)
Q1FY11 Net Earnings and Earnings Per Share Analysis
$77 $20 $442
$345
As reported LIFO Start-up costs Adjusted for
specified items (1)
EPS $0.54 $0.12 $0.03 $0.69
(1)Non-GAAP measure - see notes on page 54
40
Statement of Earnings Summary
(Amounts in millions, except per share data and percentages)
Quarter Ended
September 30
2010 2009 Change
Net sales and other
$ 16,799 $ 14,921 $ 1,878
operating income
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Gross profit 808 973 (165)
Selling, general and
381 354 27
administrative expenses
Other (income) expense - net (35) (98) 63
Earnings before taxes 462 717 (255)
Income taxes 120 220 (100)
Net earnings including noncontrolling interests 342 497 (155)
Less: Net earnings/(losses) attributable to
(3) 1 (4)
noncontrolling interests
Net earnings attributable
$ 345 $ 496 $ (151)
to ADM
Earnings per share $ 0.54 $ 0.77 $ (0.23)
41
Segment Operating Profit Summary
(Amounts in millions) Quarter Ended
September 30
2010 2009 Change
Oilseeds Processing
Crushing & Origination $ 176 $ 135
Refining, Packaging, Biodiesel & Other 76 70
Asia 56 79
308 284 $ 24
Corn Processing
Sweeteners & Starches 146 194
Bioproducts 195 (6)
341 188 153
Agricultural Services
Merchandising & Handling 103 157
Transportation 29 18
132 175 (43)
Other
Wheat, Cocoa & Gruma 26 107
Financial (42) 20
(16) 127 (143)
Total Segment Operating Profit (1) $ 765 $ 774 $ (9)
(1)Non-GAAP measure - see notes on page 54
42
Balance Sheet
(Amounts in millions)
September 30 June 30
2010 2010
(1)
Cash $ 1,370 $ 1,440
Net property, plant and equipment 8,908 8,712
Operating working capital (2) 10,550 8,839
- Total inventories 8,718 7,611
Total debt 8,903 7,548
- CP outstanding 1,225 -
Shareholders' equity 15,387 14,631
(1)Cash = cash and cash equivalents and short-term marketable securities
(2)Current assets (excluding cash and cash equivalents and short-term marketable securities) less current
liabilities (excluding short-term debt and current maturities of long-term debt)
43
Cash Flow Summary
(Amounts in millions)
Three Months Ended
September 30
2010 2009
Cash from operations before working capital changes $ 510 $ 730
Changes in working capital (1,381) 1,262
Purchases of property, plant and equipment (335) (497)
Marketable securities (214) 57
Debt increase/(decrease) - net 1,312 (141)
Dividends (96) (90)
Stock buyback (31) -
Other 51 14
Increase/(decrease) in cash and cash equivalents $ (184) $ 1,335
44
Summary of Specified Items
(Amounts in millions)
Oilseeds Corn Ag Impact Impact
Processing Processing Services Other Corporate Before Tax After Tax
Quarter ended
September 30, 2010
LIFO charge $ - $ - $ - $ - $ (123) $ (123) $ (77)
Start-up costs $ - $ (32) $ - $ - $ - $ (32) $ (20)
Quarter ended
September 30, 2009
LIFO credit $ - $ - $ - $ - $ 76 $ 76 $ 47
Start-up costs $ - $ (10) $ - $ (1) $ - $ (11) $ (7)
45
Oilseeds Processing Global Balance
• 93,000 MT/day oilseeds capacity
- 52% North America (78% soybean, 22% softseed)
- 34% Europe (54% soybean, 46% softseed)
- 14% South America (96% soybean)
• Asia-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
46
Corn Processing Product Portfolio
• 60,000 MT/day capacity in North America
- 5 wet mills, 3 dry mills
• Leading positions in
- corn sweeteners
- ethanol
- starches and amino acids
• JV growth opportunities
- Eastern Europe
- Mexican HFCS
47
Typical Sweeteners and their Compositions
Sweetener % Fructose* % Glucose*
Corn Syrup Less than 0.5 99.5
HFCS – 42 42 58
Honey 48 52
Sucrose 50 50
Grape Juice Concentrate 53 47
HFCS – 55 55 45
Apple Juice Concentrate 65 35
Pear Juice Concentrate 74 26
*After metabolism by the body
Source: John S. White, Changing the Conversation about HFCS Ten
Truths in Ten Minutes, July 2009
48
Flour Milling and Cocoa Processing
• 27,000 MT/day Flour Milling capacity
- North America/Caribbean
- Europe
• 3,000 MT/day Chocolate and Cocoa Bean
Processing capacity
- NA, SA, Europe, Africa, and Asia
49
Return on Invested Capital
(Amounts in millions)
LIFO Adjusted ROIC Earnings Four Quarters
Quarter Ended Ended
Dec 31, 2009 Mar 30, 2010 Jun 30, 2010 Sep 30, 2010 Sep 30, 2010
Net earnings attributable to ADM $ 567 $ 421 $ 446 $ 345 $ 1,779
Adjustments
Interest expense 105 101 118 117 441
Finance interest expense (3) (3) (3) (5) (5) (16)
LIFO 54 (43) 23 123 157
Total adjustments 156 55 136 235 582
Tax on adjustments (59) (21) (51) (89) (220)
Net adjustments 97 34 85 146 362
Total LIFO Adjusted ROIC Earnings $ 664 $ 455 $ 531 $ 491 $ 2,141
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LIFO Adjusted Invested Capital Trailing
Quarter Ended Four Quarter
Dec 31, 2009 Mar 30, 2010 Jun 30, 2010 Sep 30, 2010 Average
Equity (1) $ 14,765 $ 14,744 $ 14,609 $ 15,368 $ 14,872
+ Interest-bearing liabilities (2) 7,865 7,421 7,548 8,903 7,934
- Finance interest-bearing liabilities (2) (3) (242) (272) (215) (242) (243)
+ LIFO adjustment (net of tax) 153 126 140 217 159
Total LIFO Adjusted Invested Capital $ 22,541 $ 22,019 $ 22,082 $ 24,246 $ 22,722
(1) Excludes noncontrolling interests
(2) Includes short-term debt, current maturities of long-term debt and long-term debt
(3) Certain interest expense and interest-bearing liabilities of ADM’s financial business units are excluded from the ROIC calculation
50
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.
Earnings adjusted for specified items
Earnings adjusted for specified items is ADM’s net earnings after removal of the effect on earnings of certain specified items.
Management believes that earnings adjusted for specified items represents a useful measure of ADM’s performance. Earnings
adjusted for specified items is a non-GAAP financial measure and is not intended to replace net earnings, the most directly
comparable GAAP financial measure, and should not be considered as an alternative to net earnings or any other measure of
operating results under GAAP.
Total segment operating profit
Total segment operating profit, which is the consolidated segment operating profit of all of ADM’s operating segments, is ADM’s
consolidated income from operations before income tax that includes interest income and expense of each segment relating to
financing operating working capital. Total segment operating profit is a non-GAAP financial measure and is not intended to
replace earnings before income tax, the most directly comparable GAAP financial measure. Total segment operating profit is not
a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to income from
operations before income tax or any other measure of consolidated operating results under U.S. GAAP.
LIFO impact per share (net of tax)
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
diluted earnings per share and LIFO adjusted return on net assets. We believe the inclusion of the impact of changes in 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.
51
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