Safe Harbor Statement

Transcription

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2 Safe Harbor Statement 2 Some of our statements 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 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.

3 3 AGRICULTURAL SERVICES OILSEEDS PROCESSING CORN PROCESSING WILD FLAVORS & SPECIALTY INGREDIENTS

4 ADM: What We Do Simply Explained 4 Origination Processing Specialties Ag Services Division Origination of Crops For Internal Use For External Sale Wheat Milling and Other Transportation Oilseeds Processing Division Corn Processing Division Meal Oil Other Oilseed Products Sweeteners & Starches Feed Fuel WFSI Division Specialized Ingredients & Flavors Customers & End Users Regional Sales Export to Port Export & Deliver to Customer Other Corn Products

5 ADM: Key Drivers of Profitability Capacity Utilization; Industry Structure Primary Business Conditions Driver 5 Corn Processing 34% Percent of FY17 Adjusted Operating Profit Other Oilseeds Processing 31% Wild Flavors & Specialty Ingredients 11% Ag Services 22% Global Supply & Demand Balances and Fleet Utilization 1 Non-GAAP measure see appendix Innovation

6 ADM: Profitable and Evolving Growth and Mix 6 Key Financial Statistics CY17 revenue: $61B Facilities: 800+ Market cap (12/31/2017): ~$23B NYSE: ADM FY04 Adjusted Segment Operating Profit $1.6 Billion 1 Corn Processing 43% 32% Oilseeds Processing CY17 Adjusted Segment Operating Profit $2.7 Billion 1 34% Corn Processing Oilseeds Processing 28% 23% 40% Ag Services 31% 22% Ag Services Other 11% 1 Non-GAAP measure - see appendix 2% Other Wild Flavors & Specialty Ingredients

7 ADM s Proven Core Model 7 Corn Oilseeds Wheat Source Transport Process Transform Distribute Market & Sell Financial strength and industry acumen underpin the chain and drive value Food Feed Fuel Industrial Setting the competitive standard Capture value across the chain

8 ADM s History of Growth 8

9 Portfolio Actions Since

10 Acquisitions / Investments Capturing New Sources of Growth in Various Value-Added Businesses While Sustaining Our Existing Competitive Advantages 10 Origination/Transportation Processing Specialty Ingredients Eaststarch 2017

11 Driving Value Creation Throughout Optimize the Core Almost $400M in monetizations Divested CRS, announced sale of Bolivian Oilseeds Lysine turnaround 2,000 sales synergy projects in pipeline Drive Project Readiness Generated $285 million in run-rate cost savings for the year Rolled out 1ADM across several businesses and regions Operational excellence projects delivering energy, yield and process improvements Expand Strategically Expanded destination marketing; ADM Israel Grew S&S with Chamtor acquisition; expanded former Eaststarch plants Opened WFSI innovation centers in Asia, Australia Bioactives and enzymes: Biopolis, Mayo Clinic, Vland

12 Ag Services: ADM is the Premier Global Ag Services Company 12 Merchandising and Handling Transportation Wheat Milling & Other

13 $ Million ADM is the Premier Global Ag Services Company 13 Efficiently buy, store, clean and transport agricultural commodities 1,500 Ag Services Adjusted Operating Profit 1, , FY10 FY11 CY12* CY13* CY14 CY15 CY16 CY17 Merchandising & Handling Transportation Wheat Milling & Other Prior periods have been restated to conform to current year presentation, except for the elimination of the allocation of working capital interest in fiscal 2007, 2008, and See appendix In January 2013, ADM converted to a calendar year ending fiscal year. CY12 represents 12-months ending December 31, Prior FY s represent 12-months ending June 30 th Beginning in FY15, certain Foods & Wellness businesses that contributed $49 million of adjusted OP to Ag Services in FY14 began reporting results in the WFSI segment

14 Ag Services Links Crops to Global Markets 14 US & Canada Rail Eastern Europe Barge China Ocean Going Vessel SE Asia Note: Origination Assets in South America and part of Europe are reported within the Oilseeds segment. Australia NZ Container Former Toepfer Grain Elevators Wheat Milling Other Processing Trucking ARTCO Sales Office South America Truck Middle East & Africa

15 Ag Services: Grain & Transportation Sources of Profitability 15 Physical Grain Assets Physical Grain Assets Intellectual Capital Transportation Operating Expertise Elevation Capacity Volume Discounts Carry Charges Blending/Drying/Storage Connection to Farmers Risk Management Market Intelligence Arbitrage Grain & Freight Spreads/Options Diversified Product Portfolio Value Added Services Operating Efficiency Centralized Negotiations Trade Knowledge/Relationships Round Trip Optimization Competitive Advantage 3rd Party Logistics Inland Port/Intermodal Ramp Multi-modal Flexibility

16 Transportation: Core Competency & Competitive Advantage 16 Efficiency Technology 1,400 Semi Trailers Fleet Optimization 2,300 Barges 28,000 Railcars Asset Utilization Leverage 10 Owned Bulk Carriers 150 on Time Charters Ship 160,000 (teu) ocean containers annually

17 Ag Services: Growing Destination Marketing & Distribution FOB to CIF Margin $2 - $3 per MT From Origin to Port Destination Margin: Targeting $8 - $12 per MT From Port to End Customer 17 Domestic Origination River Logistics Strategic Grain Export Assets Ocean Freight Destination Ports Destination Distribution

18 Corn Processing: World s Largest Corn Processor 18 ~30 Different Products 14 corn and 1 wheat processing plants in 8 countries 40 feed and premix facilities in 6 countries Grind capacity of ~2.9 million bushels per day

19 $ Million World s Largest Corn Processor 19 Accelerating diversification of products and global footprint Corn Processing Adjusted Operating Profit 1,300 1,173 1, FY10 FY11 CY12 CY13 CY14 CY15 CY16 CY17 Sweeteners & Starches Bioproducts Prior periods have been restated to conform to current year presentation, except for the elimination of the allocation of working capital interest in fiscal 2007, 2008, and See appendix. In January 2013, ADM converted to a calendar year ending fiscal year. CY12 represents 12-months ending December 31, Prior FY s represent 12-months ending June 30 th Beginning in FY15, certain Foods & Wellness businesses that contributed $37 million of adjusted OP to Corn Processing in FY14 began reporting results in the WFSI segment

20 Corn Processing: Expanding Global Footprint 20 Corn Processing Plant 14 corn and 1 wheat processing plants in 8 countries 40 feed and premix facilities in 6 countries 3 of 5 largest corn mills in the world Daily grind capacity of ~2.9 million bushels Other Processing Plant Sweetener Terminal Ethanol Terminal Animal Nutrition Processing Plant Export Flow

21 Corn Processing: NA Footprint is Strategically Positioned for Efficient Origination and Distribution 21 Corn Belt Corn Processing Plant ADM Elevator Sweetener Terminal Ethanol Terminal ADM Export Facility

22 Corn Processing: Diverse Product Portfolio 22 Products Sweeteners Starches Alcohol Amino Acid (Lysine) Soft Drinks Confectionery Paper making Corrugating Fuel (E-10/15/85) Beverage Animal nutrition Pet Food Bakery Brewery Food Personal Care Solvent Key Applications Bio-based Propylene Glycol (PG) Food & beverage De-icing Personal care Home care

23 Fight for the Grind: Robust Product Portfolio Derived from the Corn Wet Milling Complex 23 Fibersol Polydextrose Rare Sugar Omega-3 DHA Renewable Chemicals Enzymes Polyols Over-the-fence Opportunities Soluble ingredient used to increase dietary fiber Soluble ingredient used to increase non-dietary fiber and reduce sugar and calories Ultralow-calorie sugar with taste similar to fructose Sustainable alternative to fish oil with widely recognized health benefits for both humans and animals Exploring technology to produce adipic acid and other base ingredients for products such as nylon Key production input for various ADM products; could also be sold directly for food and feed applications Used in food and personal care products Long-term agreements to supply ADM s low-cost raw materials to co-located 3 rd parties

24 HFS Sugar Glucose & Dextrose Potato Starch Corn Starch Cassava Starch Modified Starch Corn Processing: Global S&S Growth Market Perspectives Sweeteners expected growth per product (%) Starches expected growth per product (%) Keys Insights Sweeteners to grow at a greater pace than GDP Disappearance of sugar quotas in Europe will drive demand and allow for HFS substitution in the region Continued growth is both modified and corn starches Source: LMC International 2017

25 Corn Processing: Growing Our Global Footprint with China Plants 25 Tianjin Premix Feed Plant (2011) Dalian Premix Feed Plant (1996) Premix Feed Plants Tianjin Plant Complex China Corn Belt Xiangtan Premix Feed Plant (est. 2018) Nanjing Premix Feed Plant (2015) Tianjin 320K MT Fructose Plant (2014) Tianjin 18K MT Fibersol Plant (2015) Zhangzhou Premix Feed Plant (2017)

26 Ethanol: A Low Cost Octane Enhancer 26 Mandates and octane economics drive export demand Incremental opportunity from global replacement of MTBE Product Octane Content Required % to Achieve 87 Octane Current Price (2/15/2018) 619 US Ethanol Exports Millions of Gallons ,170 1,378 Corn Ethanol % ~$1.55 Alkalytes % ~$2.04 MTBE % ~$2.17 Sugarcane Ethanol (Anhydrous) % ~$ Select Export Destinations Destination Change Brazil Canada India Korea UAE Netherlands

27 Oilseeds Processing: World s Most Diversified Oilseeds Business 27 ~60 Different Products Meal Oil Other Processing Assets in 16 Countries Wilmar Equity Investment-current ownership of 24.9%

28 Geographic Reach, Broad Range of Feedstocks Make Ours the World s Most Diversified Oilseeds Business 28 Crush Refinery Biodiesel Elevator Port Packaging Value Added Golden Peanut Golden Peanut Buying Point Sales Office Wilmar Soybean Canola/Rapeseed Sunflower Flax Cottonseed Peanut Palm

29 ADM Oilseeds at a Glance 29 We originate, transport, merchandise, crush, and further process soybeans, softseeds and other oilseeds Meals and oils used in food, animal feeds, renewable fuels, industrial products 120+ production facilities 170+ procurement facilities w/storage capacity of ~4.1 million MTs Czernin, Poland, crush complex Processing capacity: 150,000+ MTs/day Employees: ~10,000

30 $ Million Oilseeds Recent Profitability Has Reached Cyclical Low Greenshoots Point To Improved Forward Outlook 30 Beginning in FY 2015, legacy Food & Wellness businesses, which contributed $165 million to Oilseeds OP in 2014, began reporting in WFSI. Full-year 2015 results also reflected the sale of our cocoa, chocolate and fertilizer businesses. Oilseeds Processing Adjusted Operating Profit 1,500 1,554 1,619 1,620 1,486 1,499 1, FY10 FY11 CY12 CY13 CY14 CY15 CY16 CY17 Crushing & Origination Asia Refining, Packaging, Biodiesel & Other Cocoa & Other Prior periods have been restated to conform to current year presentation, except for the elimination of the allocation of working capital interest in fiscal 2007, 2008, and See appendix. In January 2013, ADM converted to a calendar year ending fiscal year. CY12 represents 12-months ending December 31, Prior FY s represent 12-months ending June 30th

31 Key Competitive Advantages 31 Global Footprint Scale Strategic presence in key regions Investing to grow globally Diversification Geographic footprint Maximizing margins with switch plants Product mix Barcarena, Brazil Operations Integrated facilities Global transport/logistics network provides significant efficiencies Experienced team Risk-Management Focus Centralized hedge-desk operations Global market intelligence

32 Growth in Meat Consumption Continues to Drive Meal Demand Global poultry consumption projected to rise 257% from 1990 levels; pork up 93% Global protein meal consumption projected to rise 260% from 1990 levels 32 (in 1000 MTs) (in 1000 MTs) 140, , ,000 80,000 60,000 40,000 20, , , , , , ,000 50,000 0 Sources: USDA, OECD

33 To WFSI To WFSI Our Scale Enables Production of Broad Product Portfolio, Serving Variety of Markets with the Best Route to Market 33 Lecithin Soybean Gums Further Processing Sterols Canola/Rapeseed Crude Oil Refine Transesterify Vitamin E Biodiesel/Glycerin Interesterify Shortening Sunflower Flax Protein Meal Oil Hydrogenate Margarine Oil Protein Meal Cottonseed Further Processing Soy Flour/Cotton Flour Soy Concentrate Peanut Texturize Soy Isolate TVP/TVC Palm Cotton Lint Further Processing Cellulose

34 WILD Flavors and Specialty Ingredients: World-Class Specialty Ingredient Business 34 Industry s Broadest Portfolio of On-Trend Ingredients Addressing: Nutrition Function Texture Taste Specialty Ingredients Market = $50B $30B Ingredients $20B Flavors Market Growing 5-6%

35 WFSI Combines Legacy ADM Specialty Ingredients and Acquired Capabilities 35

36 WFSI: A Premier Specialty Ingredients Provider With Global Reach 36

37 WFSI: Industry s Broadest Portfolio of On-Trend Natural Ingredients 37 Addressing nutrition, function, texture and taste Specialty Proteins Flavors & Extracts Nuts, Seeds, & Ancient Grains Edible Beans & Peas Nutritional Supplements Polyols Colors Fiber Mint Emulsifiers Hydrocolloids Ingredient Systems

38 WILD Flavors and Specialty Ingredients: Creating Ingredient Solutions for our Global Customers 38 Processing (30+) ADM Specialty Ingredients WILD Flavors Sales Locations (50+) ADM Specialty Ingredients WILD Flavors R&D and Applications (30+) ADM Specialty Ingredients R&D WILD Center of Excellence WILD Product Dev & App

39 Ingredient Systems: A Key WFSI Differentiator 39

40 WFSI Serves as an Extension of Customer Resources 40 7

41 WFSI: Summary 41 Strategy, capabilities, talent and unique value propositions make WFSI the ideal partner for product development and ingredient needs With the broadest portfolio of ingredients in the industry, WFSI is the one-stop shop in any stage of the development process From natural, to organic, clean or clear label, WFSI has the market knowledge, ingredients and ability to help customers navigate the new dynamic marketplace Important growth platform for ADM

42 Innovation & Improvement Initiatives 42

43 Significant Opportunity for Additional Improvements A Systematic Approach to Cost Savings 43 Data Infrastructure & Analytics Maintenance Initiatives Procurement Savings Operational Excellence Process Improvements Advanced Process Controls Operational Reliability 2018 Run-Rate Cost Savings Target: Corn & Oilseeds Processing Technology Membrane Technology Fermentation Advanced Separations Catalysis $200 Million Yield Improvements Executed on projects that will deliver >$200 million in run-rate savings in 2015; >$300 million in 2016; and $285 million for 2017

44 Strategic Innovation Enables New Products 44 Diversifying Corn Grind & Expanding Oilseeds Product Portfolio Super Absorbent Polymers Industrial Oils (Coatings) Specialty Proteins Alternative Sweeteners Feedstocks: Corn Oilseeds Industrials Project Pipeline Food and Feed Target: >$1B in New Product Sales Packaging and Fibers Home and Personal Care Specialty Oils Omega-3

45 $ Billion Adjusted Consolidated Segment Operating Profit FY07 FY08 FY09 FY10 FY11 CY12 CY13 CY14 CY15 CY16 CY17 Oilseeds Processing Corn Processing Agricultural Services WILD Flavors & Specialty Ingredients Other Prior periods have been restated to conform to current year presentation, except for the elimination of the allocation of working capital interest in fiscal 2007, 2008, and In January 2013, ADM converted to a calendar year ending fiscal year. CY12 represents 12-months ending December 31, Prior FY s represent 12-months ending June 30th

46 Earnings Trend History 46 $ Year Moving Average EPS (adj) $3.50 $3.00 $2.50 $2.00 $2.30 $1.50 $1.65 FY06 FY07 FY08 FY09 FY10 FY11 CY12 CY13 CY14 CY15 CY16 CY17 Earnings and EPS net of specified items (including LIFO) In January 2013, ADM converted to a calendar year ending fiscal year. CY12 represents 12-months ending December 31, Prior FY s represent 12-months ending June 30th

47 ROIC versus Long-Term WACC LT ROIC Objective: 10% 47 1 Non-GAAP measure - see appendix 2Adjusted for LIFO and specified items see appendix 3Adjusted for LIFO see appendix

48 Balanced Capital Allocation Framework Introduced in % 60% 40% 20% % of Operating Cash Flow Spend: 60%-70% in strategic M&A or return of capital to shareholders 30%-40% reinvested in Capex 0% Historical Medium-Term

49 $Billions CapEx Discipline-Reducing CapEx to align with D&A 49 $1.9 $1.6 $1.2 $1.2 $0.9 $0.9 $1.1 $0.9 $1.0 FY09 FY10 FY11 CY12 CY13 CY14 CY15 CY16 CY17

50 Steadily Increasing Dividends 50 Annual Dividends per Share $0.96 $1.12 $1.20 $1.28 $1.34 $0.60 $0.66 $0.70 $0.76 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 (Q1 Annualized)

51 Dividend Payout Range Increased with Focus on More Stable Earnings and Cash Flows Historical Range 20%-30% Dividend Payout Ratios Ranges Medium-Term Range 30%-40% 51

52 Balance Sheet Strength-Solid Investment Grade 52 50% Net Debt/Total Capital 15.0 Available Liquidity ($Billions) 27% % % Q Q Net debt is calculated as short-term debt plus long-term debt, including current maturities less cash and cash equivalents and short-term marketable securities. Total capital excludes cash from L/T debt 0.0 Q Q Total Liquidity with RMI Liquidity Available Liquidity available includes commercial paper and other sources of available credit capacity

53 ADM Value Creation Earnings and EVA Growth 53 Balance Sheet Strength Strong Portfolio and Footprint Disciplined Capital Allocation Framework to Support Returns

54 Appendix 54

55 Historical Segment Operating Profit 55 Segment CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Operating As As As As As As As As As As As As As As As As Profit Reported Adj Adjusted Reported Adj Adjusted Reported Adj Adjusted Reported Adj Adjusted Reported Adj Adjusted Reported Adj Adjusted Reported Adj Adjusted Reported Adj Adjusted Oilseeds Processing 1, ,554 1,690 (71) 1,619 1,620 1,620 1, ,486 1,605 (106) 1,499 1,574 (285) 1, Crushing & Origination (a,b) RPB&O (71) (b) Cocoa & Other (d) (33) 13 (i) (20) (i) Asia Corn Processing , , ,188 (10) 1, (42) (50) Sweeteners & Starches (i) (b), 11 (i) (b, i) Bioproducts (d) (d) 843 (143) 10 (b) (133) (b), 4 (i) (b, i) Agricultural Services 1,002 1,002 1,323 (78) 1, ,089 (139) (30) (29) Merchandising & Handling (62) (a) (b) (a, b) Transportation Milling and Other (78) (e) (b) (5) (a) (b) WFSI (11) Other (33) (77) 51 Total 3, ,447 4,131 (48) 4,083 2, ,833 2, ,962 3,915 (222) 3,693 3,272 (348) 2,924 2,704 (81) 2,623 2, ,670 (a) Gain on asset and business disposal (b) Loss on asset and business disposal (c) Gruma foreign exhange losses (d) Start-up costs (e) Gain on sale of Gruma assets (f) Gain on Golden Peanut acquisition (g) Debt buyback costs (h) Gain on vitamin antitrust litigation settlement (i) Timing effects (j) Restructuring costs

56 Summary of Specified Items Excluded in Adjusted Earnings¹ FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 CY12 CY13 CY14 CY15 CY16 CY17 Earnings as Reported ,044 1,312 2,154 1,780 1,684 1,930 2,036 1,223 1,375 1,342 2,248 1,849 1, Specified Items: LIFO Credit/(Charge) (1) (9) (74) 71 7 (129) (354) (229) (1) FX gain/(loss) (25) (63) GrainCorp-related items (164) Gains on Sales of Assets/Revaluations (92) 10 Impairments, restructurings, and settlements OPEB Adjustment (24) Discrete Tax Adjustments (15) (739) FCPA charge (37) Start-up Costs (68) (59) 0 Debt Buyback/Exchange Costs (47) (9) (7) (118) 7 Golden Peanut Gain 44 0 Gruma Bank Disposal 49 0 Gain/(Loss) on Interest Rate Swaps (37) 19 0 Asset impairment and exit costs (274) (161) (88) (67) (172) Valuation allowance (82) Bioblenders' credit 55 0 Interest exp adj related to Ifconverted method (13) Tax on remeasurement (FY change) (14) (61) Pension settlement (44) Gain on GrainCorp 49 Quarterly ETR adjustment 0 0 Wilmar Tax (158) Gruma Derivatives (171) Wimar Restructure 286 Tyson/OSG shares 225 T& L Shares 119 Vitamin Settlement Kalama Gain 97 CIP Gain 59 HFCS Litigation (252) Repatriation Tax 373 Total Specified Items (326) (354) (7) (126) (198) (275) (144) (201) (206) 56 Earnings Excluding Specified Items ,305 1,640 2,134 1,691 2,056 2,234 1,498 1,519 1,543 2,116 1,622 1,276 1,389 EPS Adjusted for Specified Items (1) Non-GAAP measure see appendix

57 Notes: Non-GAAP Reconciliation 57 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. (1) Adjusted earnings per share (EPS) and adjusted EPS excluding timing effects Adjusted EPS and adjusted EPS excluding timing effects reflect ADM s fully diluted EPS after removal of the effect on Reported EPS of certain specified items and timing effects as more fully described above. Management believes that these are useful measures of ADM s performance because they provide investors additional information about ADM s operations allowing better evaluation of ongoing business performance. These non-gaap financial measures are not intended to replace or be an alternative to Reported EPS, the most directly comparable GAAP financial measure, or any other measures of operating results under GAAP. Earnings amounts in the tables above have been divided by the company s diluted shares outstanding for each respective quarter in order to arrive at an adjusted EPS amount for each specified item and timing effect. (2) Segment operating profit and adjusted segment operating profit Segment operating profit is ADM s consolidated income from operations before income tax excluding corporate items. Adjusted segment operating profit is segment operating profit adjusted, where applicable, for specified items and timing effects. Timing effects relate to hedge ineffectiveness and mark-to-market hedge timing effects. 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, and specified items and timing effects. Segment operating profit and adjusted segment operating profit are non- GAAP financial measures and are not intended to replace earnings before income tax, the most directly comparable GAAP financial measure. Segment operating profit and adjusted segment operating profit are not measures of consolidated operating results under U.S. GAAP and should not be considered as alternatives to income before income taxes or any other measure of consolidated operating results under U.S. GAAP. (3) Adjusted Return on Invested Capital (ROIC) 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, changes in the LIFO reserve and other specified items. Adjusted ROIC invested capital is the sum of ADM s equity (excluding noncontrolling interests) and interestbearing liabilities adjusted for the after tax effect of the LIFO reserve, and other specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM s returns excluding the impacts of LIFO inventory reserves and other specified items. 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. (4) Average ROIC Average ROIC is ADM s trailing 4-quarter net earnings adjusted for the after-tax effects of interest expense and changes in the LIFO reserve divided by the sum of ADM s equity (excluding non-controlling interests) and interest-bearing liabilities adjusted for the after-tax effect of the LIFO reserve. Management uses average ROIC for investors as additional information about ADM s returns. Average ROIC is a non-gaap financial measure and is not intended to replace or be an alternative to GAAP financial measures. (5) Adjusted Economic Value Added Adjusted economic value added is ADM s trailing 4-quarter economic value added adjusted for LIFO and other specified items. The Company calculates economic value added by comparing ADM s trailing 4-quarter adjusted returns to its Annual WACC multiplied by adjusted invested capital. Adjusted economic value added is a non-gaap financial measure and is not intended to replace or be an alternative to GAAP financial measures.