2020 Letter to Stockholders Proxy Statement 2019 Form 10-K Dear Stockholders

2020 Letter to Stockholders Proxy Statement 2019 Form 10-K Dear Stockholders, Over the last five years, ADM has undergone a remarkable evolution. We’ve built on more than a century of heritage to leverage our core capabilities and create a global nutrition business, with an industry-leading array of ingredients and solutions that are opening the door to growth opportunities in key global macro trend areas. We’ve enhanced our use of innovative technologies to help us run our business more efficiently and meet customer needs. And we’ve consolidated our operations to simplify our business, while still expanding our global footprint, building capabilities, and adding talent and expertise that allow us to create value to every part of our global value chain. Early in 2020, we launched a new corporate identity, one that reflects the exciting changes we’ve made and the dynamic company we have become. The core of that identity is our purpose: to unlock the power of nature to enrich the quality of life. We are living that purpose every day — and our accomplishments in 2019 and plans for 2020 and beyond show it. 2019 Performance and Accomplishments When 2019 began, we could not have foreseen some of the dramatic external headwinds that would affect our industry. Extreme weather in the United States, African Swine Fever, the U.S.-China trade dispute — and in the beginning of 2020, corona- virus — all posed challenges. But around the world, our team showed its resilience, its innovation and its dedication in meeting those challenges. Delivering for Shareholders and for ADM’s Future $3.24 $3.5 billion $3.1 billion 7.5% 353 $940 million 2019 Adjusted EPS Adjusted EBITDA 2019 Adjusted Four-Quarter Trailing Consecutive Return of Segment Operating Adjusted Return on quarterly dividend capital to Profit Invested Capital payments as of shareholders (ROIC), 75 basis March 2020 points above annual WACC Around the globe and in each of our three business segments, our team delivered impressive accomplishments: • In the third quarter, we launched our new combined Ag Services & Oilseeds segment, and throughout the second half of the year, that team came together and successfully delivered on the synergy opportunities offered by a simplified business model, including more than $300 million in capital-reduction initiatives. The combined business contributed $1.9 billion in adjusted operating profit in 2019, accomplishing multiple growth and improvement milestones throughout the year. We further enhanced our global destination marketing footprint, growing overall volumes by 10 percent and continuing to expand into new markets; we successfully integrated Algar Agro’s Brazilian oilseed assets; and we took actions that significantly improved results at our Golden Peanut and Tree Nuts business. In addition, our refined oils team delivered one of its best years in history, serving our customers with our value-added oils and fats solutions. • The Carbohydrate Solutions team continued to maneuver well through extremely difficult market conditions in 2019, delivering $644 million in adjusted operating profit. Despite challenging industry ethanol margins, our colleagues focused on strong execution, optimization, and operational improvement efforts. The business identified and delivered on key market opportunities: We completed a realignment of our North American flour milling business that included the opening of our new state-of-the-art flour mill in Mendota, Illinois, and we continued to serve growing customer needs for both food and industrial starches, as well as specialty sweeteners. • Nutrition had a breakout year. Our value proposition — an industry-leading portfolio of complete, innovative solutions that we can move from prototype to market with unparalleled speed and efficiency — resonated with customers around the globe. The segment’s adjusted operating profit of $418 million represented 23 percent growth over 2018. Sales were up more than 53 percent year over year on a constant-currency basis, and adjusted EBITDA was 32 percent higher than 2018. The WFSI team continued to deliver customer wins, supporting operating profits that were 18 percent higher than 2018. We enhanced our leadership position in fast-growing consumer trend areas, including an important partnership with Mar- frig for manufacturing alternative protein consumer products, and we expanded our unparalleled array of products and solutions with the addition of citrus leaders Florida Chemical and Ziegler, followed in the first quarter of this year with botanical leader Yerbalatina. We completed the acquisition of Neovia and, after a successful integration, we are now seeing the benefits of our new global platform in nutritional ingredients and solutions for pets and production animals. Supporting our performance across the enterprise was our continued focus on Readiness. Throughout 2019, we took actions to drive standardization and efficiency and improve our execution by continuing to centralize critical activities — such as our new global operations organization — and by streamlining decision-making and processes in order to drive accountability and realize additional value in the way we work. We also significantly advanced our 1ADM business transformation program in 2019. Readiness is about building a continuous improvement engine, one that’s powered by every team member’s ideas and innovation. At the end of the year, we had completed 435 individual Readiness initiatives, which in total will account for $815 million in run-rate benefits on an annual basis. For 2019 alone, Readiness contributed approximately $250 million in accrued net benefits, in line with the goals we set a year ago. Readiness represents a cultural change, one in which innovation, agility and learning are embedded at every level. That’s why we introduced our comprehensive Ability to Execute, or A2E, training in late 2018 — and why we aggressively rolled it out across the organization, until, by the end of 2019, approximately 31,000 colleagues had completed the program. Safety The health and safety of ADM colleagues and contractors remains our highest priority. Our lost workday incident rate improved once again in 2019, and severity rates were better as well. However, our total recordable incident rate was slightly higher, reminding us that safety must be the subject of constant improvement and constant vigilance. We can and must do better every single year, ensuring that every ADM colleague goes home safe and sound after every shift. That we suffered two fatalities in January of this year after more than a year without a workplace fatality is a tragic and sobering reminder that safety must always be front of mind. Diversity and Inclusion If our strength comes from our people, then it follows that an inclusive culture and diverse workforce is critical to ADM’s success. True diversity — of background, experience and opinion — is how our team innovates, learns and grows. In early 2019, we part- nered with Paradigm for Parity® and made a commitment to achieve gender parity within our senior leadership structure by 2030. We made a strong start on that goal by increasing female representation within our leadership by almost 5 percent during the year. And we’re making sure to build that diverse and welcoming culture from the ground up: in the U.S., almost 60 percent of our college class hires were from underrepresented groups. In November, we held our first Global Week of Understanding, inviting colleagues around the globe to sit down with their leaders and each other to discuss how we can work to make our culture more open and inclusive. In 2019, we saw “Together We Grow” — the consortium co-founded by ADM and focused on educating, recruiting, and retaining a more diverse workforce in the agriculture sector — take important steps forward, showing the potential for collaboration between companies, NGOs and universities with diverse but common interests to make our industry better. And for the second year running, two ADM colleagues were honored as “Women Worth Watching” by Profiles in Diversity Journal. Corporate Governance and Environmental Stewardship Our Board of Directors acts as the steward of the company in service to ADM’s many stakeholders, including its shareholders, employees, business partners, and communities. We take pride in our strong corporate governance practices, such as our independent, experienced, and diverse directors; our robust board and director evaluation process; our constant engagement with shareholders; and our oversight of corporate strategy, executive compensation and succession, enterprise risk manage- ment, and compliance policies and programs. We consistently receive high marks from shareholder organizations on the strength of our corporate governance practices. In January of this year, Fortune magazine named us one of the “World’s Most Admired Companies” for the 12th consecutive year. ADM was included in S&P Global’s Sustainability Yearbook 2020, “a showcase of the world’s best performing companies among industry peers and in terms of financially material ESG metrics.” And in February, Ethisphere, a recognized arbiter of corporate ethics, named ADM one of the world’s most ethical companies. Global sustainability is an integral part of our company’s business and culture. We believe in paving the way through good practices, progressive solutions and mindful actions that make a positive impact, and we continue to take aggressive actions to ensure we are meeting our public commitments

Load more