Slide 1: Q3 2020 Results Review
Q3 2020 RESULTS REVIEW October 28, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements • Today’s presentation includes forward-looking statements that reflect Bunge’s current views with respect to future events, financial performance and industry conditions. • These forward-looking statements are subject to various risks and uncertainties. Bunge has provided
Slide 3: Today's agenda
Today’s agenda CEO comments Financial performance Closing remarks Q&A 3 | Q3 2020 RESULTS REVIEW
Slide 4: Q3 Highlights
Q3 Highlights Exceptional performance and execution, reflecting changes to operating model, portfolio improvements and financial discipline Captured opportunities created by improving market trends Expect FY2020 Adjusted EPS to be between $6.25 and $6.75 4 | Q3 2020 RESULTS REVIEW
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Three Months Ended Nine Months Ended September 30, September 30, US$ in millions, except per share data 2020 2019 2020 2019 Net income attributable to Bunge common shareholders- diluted $ 1.84 $ (10.57) $ 3.98 $ (8.87) Adjusted Net income attributable to Bunge commo
Slide 6: Positive Earnings Trend
Positive Earnings Trend Bunge Performance 2017 – Q3 2020 TTM 1,800 Timing Adjusted, Excluding Notables $8.50 1,600 1,541 $7.50 1,400 1,308 $6.95 1,158 1,189 1,200 $6.50 $5.78 ($ millions) 1,000 877 $5.06 $5.50 $4.76 800 671 $4.50 600 $3.50 400 $2.70 $2.47 $2.50 200 - $1.50 2017 2018 2019 Q1-20 TTM Q
Slide 7: Focus on Cost Management
Focus on Cost Management Q3 Adjusted SG&A savings of $16M vs prior year reflecting organizational re-design and culture shift to continuous improvement 66 16 352 • Q3 SG&A savings of $16M 329 82 − Organizational savings: ~30% ($ millions) Notable − Indirect spend: ~70% items 286 • $82M net impact fr
Slide 8: Cash Flow Highlights
Cash Flow Highlights Retained cash flow used to pay down debt Adjusted Funds From Operations (Adjusted FFO) (1) $1,589 $1,096 #2 Retained cash of $796M ($ millions) $317 $100 $317 $524 $376 2019 Q3 2020 TTM Adjusted FFO Buybacks Dividends (2) Capex (1) Adjusted Funds From Operations is a non U.S. GA
Slide 9: Majority of Net Debt Finances RMI
Majority of Net Debt Finances RMI At quarter end, 89% of Net Debt was used to finance Readily Marketable Inventories (RMI) Net Debt ex RMI: $1.8 $0.8 $0.5 $0.9 $0.7 Net Debt ex RMI / 11% 29% 17% 10% 16% Net Debt (%): $6.2 $6.2 $5.8 $4.7 $4.8 ($ billions) $5.5 $4.4 $4.9 $3.9 $4.3 Q3 Q4 Q1 Q2 Q3 2019
Slide 10: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$4.3 billion, of which ~$3.6 billion was unused and available at September 30, 2020 ($ millions) Amount Drawn Facility Maturity Size Sep 30, 2020 CP Program / Liquidity Facility Dec 2023 $600 $398 2022 Revolving Credit Facil
Slide 11: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value YTD Capital Allocation 1,298 (160) Strong credit (25) 1,113 metrics (212) #2 (70) (100) Shareholder ($ millions) 731 dividends Reinvestment opportunities Q3 YTD (1) Sustaining Preferred Discretionary Dividends to Growth/Prod. Share Retained Share Adj.
Slide 12: Strong Earnings Momentum Drives Higher Returns
Strong Earnings Momentum Drives Higher Returns AROIC captures benefits of earnings driven from utilization of additional RMI Bunge Limited (excluding Sugar & Bioenergy) 13.8% AROIC (2) 11.7% ROIC (3) 10.9% 9.6% 9.7% 9.5% 7.9% 8.1% 8.0% 6.5% 6.6% 6.6% 5.9% 6% 2017 2018 2019 Q1-20 Q2-20 Q3-20 2017 201
Slide 13: Cash Flow Yield Demonstrates Bunge's Durability
Cash Flow Yield Demonstrates Bunge’s Durability Bunge Performance 2017 – Q3 2020 TTM Discretionary Cash Flow (1) 1,296 1,057 22.0% 19.1% 749 779 721 ($ millions) 569 13.7% 14.3% 13.4% 8.7% 7.0% 2017 2018 2019 Q1-20 Q2-20 Q3-20 TTM TTM TTM Discretionary Cash Flow Cash Flow Yield Cost of Equity (1) To
Slide 14: Outlook
Outlook Excluding notable items and mark-to-market timing differences, we now expect full-year adjusted earnings of between $6.25 and $6.75 per share • Agribusiness improved outlook reflects Q3 YTD results, current market environment and forward curves • Edible Oils now expected to be up vs. last ye
Slide 15: Closing Remarks
Closing Remarks Expect many of the favorable trends from the quarter to carry through remainder of 2020 and into 2021 Expect long-term underlying demand for our products to remain strong, with additional demand for vegetable oil due to the growth of biofuels Well positioned to meet market demands an
Slide 16: Q&A
Q&A BUNGE
Slide 17: Agribusiness: Oilseeds & Grains Definitions
Agribusiness: Oilseeds & Grains Definitions Oilseeds Grains • Oilseed processing • Grain origination ‒ Soybean: U.S., South America, ‒ Grains (corn, wheat, barley, rice) Europe, Asia ‒ Oilseeds (soybean, rapeseed/canola, ‒ Rapeseed/Canola: Europe, Canada sunseed) ‒ Sunseed: Eastern Europe, Argentina
Slide 18: Core Segment Volume Highlights
Core Segment Volume Highlights Three Months Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2020 2019 2020 2019 Agribusiness 35,887 36,554 107,222 104,992 Oilseeds 16,802 #2 16,039 50,198 49,517 Grains 19,085 20,515 57,024 55,475 Edible Oil Products 2,473 2,462 7,101
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the following slides. These measure
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, and Adjusted Total Segment EBIT, are calculated by excluding certain gains and (charges), as described in "Additional Financial Information“ of Bunge’s accompanying quarterly earnings press release, as well as certai
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash Flows To facilitate a comparison of Bunge’s historical cash flow generation and related trends, Bunge uses the following non-GAAP financial measures: • Adjusted Funds from Operations (Adjusted FFO) • Discretionary Cash Flow • Cash Flow Yield Adjusted FFO is calculated by
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Returns on Capital To facilitate a comparison of Bunge’s historical returns on capital and related trends, Bunge uses the following non-GAAP financial measures: • Return on Invested Capital (ROIC) • Adjusted Return on Invested Capital (AROIC) Bunge calculates ROIC by dividing
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income (loss) Three Months Ended Nine Months Ended September 30, September 30, (US$ in millions) 2020 2019 2020 2019 Net income (loss) attributable to Bunge $262 $(1,488) $594 $(1,229) Adjustment for Mark-to-market timing diffe
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Nine Months Ended September 30, September 30, (US$ in millions) 2020 2019 2020 2019 Net income (loss) attributable to Bunge $262 $(1,488) $594 $(1,229) Interest in
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2020 Q3 YTD 2020 Q3 TTM (1) 2020 Q2 TTM 2020 Q1 TTM 2019 2018 2017 Cash provided by (used for) operating activities ($2,128) ($1,621) ($1,226) ($845) ($808) ($1,264) (
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters Quarters September 30, June 30, March 31, December 31, December 31, Dec
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters Quarters September 30, June 30, Marc
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Book Equity Below is a reconciliation of Total equity to Book Equity: September 30, June 30, March 31, December 31, December 31, December 31, (US$ in millions) 2020 2020 2020 2019 2018 2017 #2 Total equity $5,452 $5,209 $4,971 $6,031 $6,377 $7,357 Convertible preference (690)
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