¹ Non-GAAP financial measures; see pages 5, 10, 11 and 12 for explanations and reconciliations, including after-tax amounts.

Segment operating profit is ADM’s consolidated income from operations before income tax excluding corporate items. Adjusted segment operating profit, a non-GAAP financial measure, is segment operating profit excluding specified items. 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 as well as specified items. Segment operating profit and adjusted segment operating profit are not measures of consolidated operating results under U.S. GAAP and should not be considered alternatives to income before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under U.S. GAAP.

⁽¹⁾ Includes a charge related to an inventory writedown of $13 million in the current YTD, and a credit related to changes in the Company’s LIFO reserves of $91 million in the prior YTD.

⁽²⁾ Includes a charge related to a legal settlement of $38 million in the current YTD and $4 million in the prior quarter and YTD. Also includes acquisition-related expenses of $3 million in the current quarter and YTD.

⁽³⁾ Includes charges related to restructuring of $2 million and impairment and restructuring of $84 million in the current quarter and YTD, respectively, and impairment and restructuring of $4 million and $61 million in the prior quarter and YTD, respectively.

⁽⁴⁾ Includes (gains) losses related to the mark-to-market adjustment of the conversion option of the exchangeable bond issued in August 2020 of $(7) million and $(17) million in the current quarter and YTD, respectively, and $15 million in the prior quarter and YTD.

⁽⁵⁾ Includes YTD gains related to the sale of certain assets of $22 million, and prior quarter and YTD gains related to the sale of Wilmar shares and certain other assets of $57 million and $80 million, respectively.

⁽⁶⁾ Includes exit costs of $2 million in the current YTD.

⁽⁷⁾ Includes a settlement charge related to pension liabilities of $1 million and $83 million in the current quarter and YTD, respectively.

⁽⁸⁾ Includes a loss on debt extinguishment of $36 million in the current quarter and YTD primarily related to the early redemption of the $500 million 2.75% notes due in 2025. Includes early debt repayment expenses of $396 million and $410 million in the prior quarter and YTD, respectively.

⁽⁹⁾ Includes the tax expense (benefit) impact of the above specified items and tax discrete items totaling $(13) million and $(62) million in the current quarter and YTD, respectively, and $(88) million and $(69) million in the prior quarter and YTD, respectively.

(a)

Net debt is calculated as short-term debt plus long-term debt (including current maturities) less cash and cash equivalents.

(b)

Current assets (excluding cash and cash equivalents) less current liabilities (excluding short-term debt and current maturities of long-term debt).

(a) Cash flows related to the Company’s retained interest in securitized receivables as required by ASU 2016-15 which took effect January 1, 2018.

Prior YTD changes in the Company’s LIFO reserves of $(91) million pretax ($69 million after tax), tax effected using the Company’s U.S. income tax rate.

Current YTD gains of $22 million pretax ($17 million after tax) were related to the sale of certain assets, tax effected using the Company’s U.S. income tax rate. Prior quarter and YTD gains of $57 million pretax ($54 million after tax) and $80 million pretax ($72 million after tax), respectively, were primarily related to the sale of Wilmar shares and certain other assets, tax effected using the applicable tax rates.

Current quarter charges of $3 million pretax ($3 million after tax) were related to restructuring and pension settlement, tax effected using the applicable tax rates. Current YTD charges of $220 million pretax ($167 million after tax) were related to the impairment of certain assets, restructuring, and legal and pension settlements, tax effected using the applicable tax rates. Prior quarter and YTD charges of $8 million and $65 million pretax, respectively ($5 million and $49 million after tax, respectively), were related to the impairment of certain assets, restructuring, and a settlement, tax effected using the applicable tax rates.

Current quarter and YTD expenses of $3 million pretax ($2 million after tax) were related to the Balto acquisition.

Current quarter and YTD debt extinguishment charges of $36 million pretax ($27 million after tax) were related to the early redemption of notes, tax effected using the Company’s U.S. income tax rate. Prior quarter and YTD debt extinguishment charges of $396 million pretax ($300 million after tax) and $410 million pretax ($311 million after tax), respectively, were related to the early repurchase of certain of the Company’s debentures, tax effected using the Company’s U.S. income tax rate.

Loss (gain) on debt conversion option of $(7) million and $(17) million pretax ($(7) million and $(17) million after tax) in the current quarter and YTD, respectively, and $15 million pretax ($15 million after tax) in the prior quarter and YTD, was related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020, tax effected using the applicable tax rate.

Tax adjustment totaling $(3) million and $(4) million in the current quarter and YTD, respectively, and $8 million and $16 million in the prior quarter and YTD, respectively, was related to certain discrete items.

Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described above. Adjusted EPS reflects ADM’s fully diluted EPS after removal of the effect on EPS as reported of specified items as more fully described above. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item.

⁽¹⁾ Excludes noncontrolling interests

⁽²⁾ Includes short-term debt, current maturities of long-term debt, finance lease obligations, and long-term debt

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 and specified items. Adjusted invested capital is the sum of ADM’s equity (excluding noncontrolling interests) and interest-bearing liabilities adjusted for the after-tax effect of specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM’s returns excluding the impacts of specified items and increases period-to-period comparability of underlying business performance. 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.

Adjusted EBITDA is defined as earnings before taxes, interest, and depreciation and amortization, adjusted for specified items. The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense and depreciation and amortization to earnings before income taxes. Management believes that adjusted EBITDA is a useful measure of the Company’s performance because it provides investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to earnings before income taxes, the most directly comparable GAAP financial measure.