ADM Latest Analyst Presentation

Vital to the World

Patricia Woertz – Chairman, CEO and PresidentSteve Mills – EVP & CFO John Rice – EVP, Commercial & Production Ed Harjehausen – SVP, Global CornRandy Kampfe – VP, Corn ProcessingDwight Grimestad - VP, Investor Relations

Corn Processing Business ReviewAnd Plant Tour

October 7, 2008

2

Safety Moment

3

Please Turn Off Cell Phones and Pagers

4

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. Anychanges 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.

5

Agenda for the Day8:00am Overview Presentation: Strategy and Execution;

Patricia Woertz - Chairman, CEO and PresidentFinancial Performance and Capital Expenditures;

Steve Mills - EVP and CFORecent Trends Shaping Global Grain Supply, Demand and Prices;

John Rice - EVP, Commercial and Production

**Q&A

Break

8:55am Corn Processing Business Review; Ed Harjehausen - SVP, Global Corn

Corn Operations Review; Randy Kampfe - VP, Corn Processing

**Q&A

10:00am Cedar Rapids Plant Tour; Doug Brakhan - Plant Manager

12:00pm Wrap-up Q&A and Lunch; ADM Management Team

1:30pm Conclusion

Overview Presentation:Strategy and Execution

Pat Woertz – Chairman, Chief Executive Officer and President

7

8

Sourcing facilitiesOilseed processingCorn processingCocoa & wheat processingSourcing distributionProcessing distribution

Our World-Class Asset Base Is Positioned for Global Growth

9

We Have Leveraged our Value Chain and Executed on our Strategy

CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL

SALESPROCESSING DISTRIBUTIONSOURCING TRANSPORTATION

The ADM Value Chain

10

We Have Diversified Feedstocks

DiversifyFeedstocks• Palm• Sugar• Biomass

CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


11

We Have Expanded the Geographic Scope of our Core Model

DiversifyFeedstocks

CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


Expand Geographic Scope of Core Model•Rapeseed crushing in Germany •Cocoa plants in U.S. and Ghana•Origination, transportation network in U.S.

12

We Have Grown our BioEnergy Business

Grow BioEnergy Business•Completing BioEnergy facilities•Pursuing innovative research with partners

CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


Expand Geographic Scope of Core Model

DiversifyFeedstocks

13

We Have Reduced Water Consumption

CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


DiversifyFeedstocks

GrowBioEnergyBusiness


Technology and Innovation Drive Growth

Reduced Water Consumption

14

CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


DiversifyFeedstocks




Reduced Water Consumption Cogeneration

We Are Building Efficient Cogen Plants

15


CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


DiversifyFeedstocks



Reduced Water Consumption Cogeneration Advanced Biofuels

We Are Continuing Advanced Biofuels Research

16


CORN

OILSEEDS

WHEAT

COCOA

FOOD

FEED

FUEL

INDUSTRIAL


DiversifyFeedstocks



Reduced Water Consumption Cogeneration Advanced Biofuels

Customer Needs

We Use Technology and Innovation to Meet Customer Needs

17

We Have Driven Improvements in Key Priority Areas…

• Safety• Cost Management• Project & Capital Discipline• Metrics

…and Set New Priorities• Safety• Cost Management• Performance• Sustainability

• Continuous Learning• Leadership• Communication

18

We Are Advancing the Understanding that Agriculture Can and Will Meet Global Demands

Financial Performance and Capital Expenditures

Steve Mills - Executive Vice President and Chief Financial Officer

20

We Achieved Record Segment Operating Profit in 2008 (Amounts in millions, except for per share data and percentages)

FY08 FY07 % Change

Net sales and other operating income 69,816$ 44,018$ 59%

Segment Operating Profit 3,441 3,161 9%

Net earnings 1,802 2,162 (17%)

Diluted earnings per share 2.79$ 3.30$ (15%)

Year ended

21

Our Diversified Portfolio Drives Earnings Growth

Crushing & OriginationRefining, Packaging, Biodiesel & Other

Asia

Sweeteners &StarchesBioproducts

Merchandising &Handling

Transportation

Wheat, Cocoa, Malt

Financial

Oilseed Processing Ag ServicesCorn Processing Other

FY06 FY07 FY08

22

Our Diversified Portfolio Drives Earnings Growth

Crushing & OriginationRefining, Packaging, Biodiesel & Other

Asia

Sweeteners &StarchesBioproducts

Merchandising &Handling

Transportation

Wheat, Cocoa, Malt

Financial

Oilseed Processing Ag ServicesCorn Processing Other

FY06 FY07 FY08

23

Our Balance Sheet Reflects the Impact of Increased Commodity Prices and our Capital Construction Projects

June 30 June 302008 2007

Invested Capital

Working capital 14,189$ 7,787$

Net property, plant and equipment 7,125 6,010

Investment in affiliates 2,773 2,498

Long-term marketable securities 590 657

Other non-current assets 1,113 831

25,790$ 17,783$

Financed By

Short-term debt 3,123$ 468$

Long-term debt 7,922 4,817

Deferred liabilities 1,255 1,245

Equity 13,490 11,253

25,790$ 17,783$

24

Major Construction Projects Are on Schedule

Current Timeline*

Plant Location – Project Phase IProject

Completion

Columbus, NE – Ethanol Q309

Cedar Rapids, IA – Ethanol Q110

Clinton, IA – Co-Generation On-line Q109

Columbus, NE – Co-Generation Q309 Q409

Clinton, IA – PHA Q209

Hazleton, PA – Cocoa On-line Q309

Decatur, IL – Propylene/Ethylene Glycol Q309

Total Projected Costs $2.6B

*Calendar Year

Recent Trends Shaping Global Grain Supply, Demand and Prices

John Rice - Executive Vice President, Commercial and Production

26

World Meat and Grain Consumption Is Growing

2007/08 1988/89 % ChangePopulation 6.7B 5.2B 29%

(Amounts in millions of tons)

2727

World Grain and Oilseeds Production Is GrowingArea Production

2828

High Crude Oil Prices Impact Crop Prices(Amounts in U.S. dollar/barrel)

2929

The Weak Dollar Impacts Crop Prices(Amounts in Euro)

3030

Fund Investments Impact Crop Prices(Amounts in billions of dollars)

31

Increased Crop Production Is Projected for 08/09

• Wheat production to increase by 65M tons

• Oilseeds production to rise by 27M tons

• Coarse grains production to grow by 11M tons

Source: USDA

32

World Corn Production Grows to Meet Demands

Source: USDA

33

ADM Is Positioned to Respond to a Changing Marketplace

• Proprietary crop intelligence offering insight into world grain markets and flows

• Transportation network spanning five continents

• Versatile, responsive processing facilities

• Ability to reformulate rations to produce cost-effective feeds based on current commodities prices

3434

ADM Provides Alternatives to Optimize Swine Feed Formulas

Corn Amino Acids Canola Wheat Barley SBM Vit & Min Fat Wheat Midds MiloMeat & Bone Meal Bakery Meal DDGS Rapeseed Meal

3535

Corn Amino Acids Canola Wheat Barley SBM Vit & Min Fat Wheat Midds MiloMeat & Bone Meal Bakery Meal DDGS Rapeseed Meal

ADM Provides Alternatives to Optimize Poultry Feed Formulas

3636

Current Ration Based on Available Coproducts

Alternative Ration Based on Increased DDGS Availability

Ration Without Ethanol Coproducts

Similar to 1990’s

Protein Supplements Cottonseed Alfalfa Hay DDGSSoybean Hulls Corn Grain Wheat Midds Canola MealCottonseed Hulls Corn Silage CGFP Citrus Pulp

ADM Provides Alternatives to Optimize Dairy Cattle Feed Formulas

37

Q&A

ADM Strategy and Execution

Financial Performance and Capital Expenditures

Crop Dynamics

38

BREAK

Corn Processing Business Review

Ed Harjehausen - Senior Vice President, Corn

40

Corn Processing Business Review

• Fundamentals

• New Product Development

• Issues

• Strengths

41

ADM’s Diversified Product Line Maximizes Value

• 2.0 million bu/day

• 7 U.S. plant locations

• Maximize returns by allocating grind to different products that make the most financial and strategic sense

• Will continue to develop new value-added products that effect product mix

42

Joint Ventures Are Positioned for International Opportunities

SlovakiaHungary

Romania

Bulgaria

Turkey

Guadalahara

43

Wet Corn Mills Deliver Lower Net Corn Costs

Wet Mill Dry MillCash Price $ 5.00/BU $ 5.00/BU

Coproduct Credits2.5 lbs of 60% corn gluten meal $ 470.00/ST12.5 lbs 21% corn gluten feed $ 85.00/ST1.5 lbs of corn oil $ 0.45/LB18 lbs distilled dry grain $100.00/ST

Net Corn $ 3.18/BU $ 4.00/BU(cost of starch 31.5 lbs/bu)

Typical Coproduct Credit 35 - 45% 20 - 30%

(BU = 56 lbs)

44

We Produce 24 Products from Corn

Starch

CORN SYRUP, HIGH FRUCTOSE CORN SYRUP

FUEL ALCOHOL

Dextrose (Liquid and Crystalline), Maltodextrin

Xanthan Gum, Citric Acid, Lactic Acid, Yeast

Sorbitol (Liquid and Crystalline)Propylene Glycol, Ethylene Glycol

Additional Products

PHA (biodegradable plastic)

Ethyl Lactate

Food and Industrial Starches

Lysine, Threonine, Astaxanthin

Corn Oil

Gluten Feed

Gluten Meal

45

ADM Has Leading Positions in Key Markets

1st 2nd 3rd

Total Grind Cargill Tate & Lyle

HFCS Cargill Tate & Lyle

Syrup Cargill Tate & Lyle

Starch Tate & Lyle National Starch & Chemical

Ethanol PoetAventine

Renewable Energy

46

HFCS Remains an Attractive Alternative to Sugar

• U.S. market – 23.5 billion pounds, slightly declining volume

• Mexico volumes – up over last year

• ADM has approximately 30-35% market share

• Beverages account for 70% of HFCS usage

• Price differential between sugar and fructose has grown

47

Source: Energy Information Administration

U.S. Ethanol Demand and Supply Are Growing

20 Days

*Calendar Year

48

Ethanol Demand Exceeds RFS Requirements

Source: Energy Information Administration*Calendar Year

49

The Ethanol Industry Sees Growing Demand

2008- Florida 900 mmg- Georgia 500 mmg- Tennessee 350 mmg- N Carolina 450 mmg- Virginia 390 mmg- Indiana 120 mmg- Illinois 170 mmg- Ohio 160 mmg- Iowa 40 mmg- Kansas 40 mmg- Maryland 25 mmg- S Carolina 260 mmg

2010- California 700 mmg- Texas 800 mmg- Arizona 160 mmg- Utah 115 mmg

2009 - Michigan 350 mmg- Oregon 120 mmg- Nevada 50 mmg- Pennsylvania 350 mmg- New York 290 mmg- Washington 260 mmg- Kentucky 175 mmg- Mississippi 150 mmg- Arkansas 125 mmg- Oklahoma 200 mmg- Louisiana 200 mmg- Alabama 200 mmg- W Virginia 80 mmg- Maine 80 mmg- N Hampshire 60 mmg- Vermont 35 mmg

2008: 3,405 mmg 2009: 2,725 mmg 2010: 1,775 mmg

Three-year period: 7,905 mmg

50

Low Refining Margins Drive Ethanol Use

51

Ethanol Has a Competitive Advantage• Ethanol = $ 1.8100 (net) 116 Octane

• USGC RUL = $ 2.8226 87 Octane

• USGC PUL = $ 3.0226 93 Octane

• MTBE = $ 2.8700 110 Octane

• Alkylate = $ 3.3126 93 Octane

• Iso-octane = $ 3.3426 98 Octane

• Reformate = $ 3.6926 100 Octane

• Toluene = $ 3.7900 101 Octane

Ethanol = NYMEX RBOB $2.6651 - $.3451

= 2.3200 - .51 = 1.8100

Source: Platt’s Marketwire September 26, 2008

52

Brazilian Ethanol Export Capacity Is Limited

Import to U.S. 2007 2008 Est. 2009 Est. 2010 Est.

Caribbean 354 495 675 740

Direct 85 46 0 0

TOTAL 439 541 675 740

US Market 6,600 9,000 10,500 12,000

% of US Market 6.65% 6.01% 6.43% 6.17%

*Total export capacity 1.5 billion gallons/year *2008 estimates non-U.S. CBI exports - 475 mmg

Source: F.O. Lichts , The Kingsman

(Amounts in millions of gallons, except for percentages)

53

Commercialization in progress

• Telles JV between ADM and Metabolix

- Biodegrades in soil and marine environments

- Heat resistant

• Glycols

New Products Offer Opportunities to Increase Value from Grind

54

Industrial Chemicals Offer Growth Potential for the Future• Focus on direct chemical replacements

- Based on ADM feedstocks

- Low cost position possible

- Initial focus on North America

- High growth market or market support for bio-based

- Increases speed-to-market

• License external process technology where necessary

• Develop partners for specialty chemicals where performance knowledge is required

55

Issues Affecting Corn Industry

56

HFCS Is the Same as Table Sugar

• “It's basically no different from table sugar. Table sugar is glucose and fructose stuck together. Corn sweeteners are glucose and fructose separated. The body really can't tell them apart ...”

- Dr. Marion Nestle, Paulette Goddard Professor of Nutrition, Food Studies, and Public Health, New York University

• “If there was no high-fructose corn syrup, I don't think we would see a change in anything important.”

- Dr. Walter Willett, Chairman of the Nutrition Department, Harvard School of Public Health

57

Facts about HFCS Are a Sweet Surprise

58

U.S. DDGS Demand Is Growing With Supply

Source: Informa

59

DDGS Are an Effective Feed Ingredient CHICKENS• “I’m very enthusiastic about using DDGS in poultry diets. We use it just like other

ingredients that are available. And as the ethanol Industry has grown, there are more and more tons of DDGS, and we’ll continue to use it”

- Philip Smith, Poultry Nutritionist, Tyson Foods, Inc.

TURKEYS• “Current feeding trials have examined the use of low and moderate levels of distillers

dried grains with solubles in broiler and turkey diets. In market tom turkeys, up to 20% DDGS in grow/finish diets is possible in diets with normal protein content and when feed intake is not limited.”

- Dr. Sally Knoll, Professor, University of Minnesota Extension Service

SWINE• “The Maschhoffs Inc. feed DDGS at up to 30% in some swine rations. At current

commodity prices DDGS is very competitive and allows for the replacement of corn, soybean meal, and monocalcium phosphate. ”

- Aaron Gaines, The Maschhoffs Inc.

60

Food Prices Are Driven by Energy Costs

• “During the first four months of 2008, the all food CPI increasedby 4.8 percent, with increased ethanol and biodiesel consumption accounting for only about 4-5 percent of the total increase, while other factors accounted for 95-96 percent of the increase.”

- U.S. Dept. of Energy, U.S. Dept. of Agriculture

• Increasing petroleum prices have about twice the impact on consumer food prices as equivalent increases in corn prices.

- USDA Economic Research Service

• Food travels on average 1,500 miles before it gets to the retail establishment.

- National Farmers Union

61

Ethanol Is Keeping Down Gasoline Costs

• “Oil and gas prices would be 15% higher if biofuelproducers weren’t increasing output.”

- Merrill Lynch commodity strategist Francisco Blanch

• “If we had not been blending ethanol into gasoline, gasoline prices would be between 20 cents and 35 cents per gallon higher.”

- U.S. Dept. of Energy, U.S. Dept. of Agriculture

62

Global Agricultural Leaders Are Responding to Concerns

www.FoodAndEnergy.org

63

ADM Has Competitive Advantages in Corn Processing• Diversification of product mix

• Advantages of combining wet and dry operations

• Cogeneration: steam and power from coal

• Size: first in grind and first or second in major product lines

• Logistics

• Global markets for coproducts

• Grain origination

• Economies of scale

Corn Operations Review

Randy Kampfe - Vice President, Corn Processing

65

Corn Plants Are Organized around Focus Areas

EngineeringCost AnalystPurchasingHuman ResourcesEnvironmentalQuality

Co-Gen Superintendent

Shift Supervisor

4-5

Engineering

Maintenance

Dept 1Supt.

Dept 2Supt.

Dept NSupt.

Const. Supvs.1-N

Project Engineers1-NProcess

EngineerProcess Engineer

Process Engineer

Shift Supv.4-5

Shift Supv.4-5

Shift Supv.4-5

Maintenance Supt.

Reliability Engineer

Shift Supv.4-5

Shift Supts.4-5

Process Engineer

Process Engineer

Process Engineer

Shift Supv.4-5

Shift Supv.4-5

Shift Supv.4-5

Dept 1Supt.

Dept 2Supt.

Dept NSupt.

Wet Mill Superintendent

Dry Mill SuperintendentSafety

Plant Manager

66

We’re Improving Safety Performance

67

Each Kernel of Corn ContainsMultiple Value Streams

Oil: 1.75 lbs/bu

Fiber: 8.75 lbs/bu

56 lbs/bu total, 15.5% H2O= 47.3 lbs/bu dry matter

Starch: 31.5 lbs/bu

Protein: 5.3 lbs/bu

68

Dry Milling Is Simpler but Less Flexible

69

Wet Milling Is Flexible but Capital Intensive

70

Increasing Grind Rates Maximize the Value of Existing Assets

71

Cost Control Is Critical to Success

• Cost control is a challenge – especially with the rising cost of energy

• Efficient use of energy is a key to success, and our investments in cogeneration are helping mitigate our costs for steam and electricity

• An on-going Task Force explores projects that affect cost optimization

• Improvements are being achieved through capital expenditures to improve efficiencies

72

We Are Improving Capital Project ManagementEnhancing and improving project management:

- Safety is actively managed with on-site safety pros

- Design once, build multiple times

- Global sourcing used for equipment and materials

- Maximize shop fabrication, minimize field fabrication

- Best practices adopted and shared between projects

- Coordinated management oversight across major projects

- Collaboration between projects for development and training of production teams

73

Cedar Rapids, IA - Adding Ethanol Dry Mill

Cogen

Wet Mill

Dry Mill

Red Star

Process ProductsWet Dry 42 55 CS 97DE Sorb Starch Ethanol Other

X CIP X X X X X X X

74

Clinton, IA - Adding Cogen and PHA

Feedhouse

Cogen PHA


X X X X X X X

Wet Mill

75

Columbus, NE - Adding Ethanol Dry Mill and CoGen

Cogen

Wet MillDry Mill


X CIP X X X X

76

Decatur, IL - Our Largest Corn Plant

CogenWet Mill

BioProducts

Corp


X X X X X X

Propylene Glycol

77

Marshall, MN


X X X X X

Ethanol

Wet Mill

Refinery

78

Peoria, IL - Our Largest Dry Mill

Ethanol

Dry Mill


X X

79

Ethanol

Dry Mill

Walhalla, ND - Our Smallest Corn Plant


X X

80

ADM Has Competitive Advantages in Corn Processing

• Diversification of product mix

• Advantages of combining wet and dry operations

• Cogeneration: steam and power from coal

• Size: first in grind and first or second in major product lines

• Logistics

• Global markets for coproducts

• Grain origination

• Economies of scale

81

Q&A

Corn Processing Business

Corn Processing Operations

82

Plant Tour Video

83

Tour Security & Safety

1. Proper clothing is mandatory

2. Personal Protective Equipment (hard hats, safety glasses, ear protection) provided by ADM

3. No cell phones, cameras, pagers, or any other electronic devices

4. You will be escorted by an ADM employee

5. Be aware of potential slip, trip, and fall hazards

84

Tour Security & Safety

6. Be alert for railcars moving on the tracks (red light and audible horns are warnings)

7. Some production areas have special requirements which are posted at their entrances

8. The facility is tobacco-free

9. In the event of an emergency your ADM escort will instruct you where to go