Archer-Daniels-Midland Company

Thank you, Shelby.

Good morning, and welcome to ADM's second quarter earnings webcast. Starting tomorrow, a replay of today's webcast will be available at ADM.com. For those following the presentation, please turn to slide two, the company's safe harbor statement. which says that some of our comments and materials 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. On today's webcast, our chairman and chief executive officer, Juan Luciano, will provide an overview of the quarter and highlight some of our accomplishments. Our chief financial officer, Ray Young, will review the drivers of our performance, as well as corporate results and financial highlights. Then, Juan will make some final comments, after which they will take your questions. Please turn to slide three. I will now turn the call over to Juan.

Thank you, Vikram. I'm pleased to share with you results that continue to demonstrate our success in delivering strong and sustained earnings growth. This morning, we reported record second quarter adjusted earnings per share of $1.33. Adjusted segment operating profits was $1.2 billion, up 44% versus the second quarter of 2020. our trailing four-quarter adjusted EBITDA was about $4.5 billion, almost $900 million more than a year ago. And I'm proud to report that our trailing four-quarter average adjusted ROIC was 9.7%, which is both significantly higher than the 8.1% of the prior year period and also represents the achievement of our 10% objectives. I'm proud of the entire ADM team for their great results this quarter. We're living up to our promises and our purpose, and the continuing execution of our strategy is delivering impressive, ongoing growth for our company, our customers, and our shareholders. I'd like to take a moment to highlight some of our accomplishments from the quarter. Slide four, please. Over the last decade, we made cultural, technology, and process changes that help us revolutionize how we do our work every day. We started with operational excellence, added to that performance excellence, and expanded into readiness, which encompassed a broader array of specific actions within our control to drive value creation, including profitable growth. Now, as we enter the next phase of our strategic transformation, the concept of readiness will continue to be embedded in everything we do. But we will categorize our efforts going forward as either productivity or innovation. Productivity is about using new technologies and thinking to automate, digitize, and standardize our processes. is a lever under our control that allows us to enhance efficiencies and manage costs. One great example of our productivity work is the digitalization of our procurement center of excellence. We're implementing best-in-breed technology that's standardizing processes and reducing costs in our indirect procurement. Most importantly, This advancement is unleashing our colleagues to drive even greater value by transforming their work from tactical to strategic. That's just one example of the kind of initiatives we're pursuing under productivity. Across the enterprise, our productivity efforts collectively are expected to deliver about $200 million in savings in calendar year 2021. Please turn to slide five. The other pillar of our strategy is innovation. Innovation is how we are delivering profitable growth. And one of the key ways we will support and propel our innovation work is through an initiative we launched this year called ISD. ISD is a fundamental realignment of our human nutrition business commercial organization and go-to-market approach from a product-driven focus to a more customer-centric, market segment-driven structure for global beverages, global health and wellness.