Slide 1: Q4 2022 Earnings Results Review
Q4 2022 Earnings Results Review February 8, 2023
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: Agenda
• CEO Comments • Financial Performance Agenda • Closing Remarks • Q&A 3
Slide 4: FY2022 & Q4 Highlights and Outlook
FY2022 & Q4 Highlights and Outlook • Strong Q4 and FY 2022 results demonstrate flexibility of Bunge platform and team • Delivered fourth consecutive year of earnings growth • Higher Q4 Adjusted Core Segment EBIT vs. prior year driven by strong performances across all regions in Refined and Specialty
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended Year Ended December 31, December 31, (US$ in millions, except per share data) 2022 2021 2022 2021 Net income per common share-diluted $ 2.21 $ 1.52 $ 10.51 $ 13.64 Adjusted Net income per common share-diluted (a) $ 3.24 $ 3.49 $ 13.91 $ 12.93 Adjusted
Slide 6: Positive Earnings Trend
Positive Earnings Trend Strong earnings continue through 2022 Bunge Performance 2018 – 2022 Timing Adjusted, Excluding Notables 3,000 2,854 $16.00 2,530 $14.00 2,500 $13.91 $12.00 2,000 1,759 $12.93 $10.00 ($ millions) 1,500 $8.00 1,158 877 $8.30 $6.00 1,000 $4.00 500 $4.76 $2.00 $2.70 - $0.00 2018
Slide 7: Continuous Focus on Costs
Continuous Focus on Costs 135 • 2022 Addressable SG&A increase of $69M vs PY 69 66 • Return to more normal activities post-pandemic 1,369 1,234 • Related to investments to ($ millions) drive future growth • $66M net cost impact from specified items including performance-based pay, FX, inflation and
Slide 8: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Capital Allocation Priorities BBB/Baa2 target credit ratings Shareholder dividends Reinvestment opportunities Share buybacks (1) (1) Adjusted Funds From Operations is a non U.S. GAAP measure. Reconciliation to the most directly comparable U.S. GAAP m
Slide 9: Capex Update
Capex Update Focused on a variety of both shorter-term and multi-year projects to drive growth $800M-$1B • Growth investments focused on capacity 55% expansion, debottlenecking & new capabilities: $555M • Origination, crush, refining, low-CI feedstocks and $399M 45% soy protein concentrates 45% 45%
Slide 10: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $10.0 $8.9 $9.0 $8.4 At December 31, $8.0 $6.9 2022, RMI (Readily ($ billions) $7.0 $6.7 $6.4 $6.1 Marketable $6.0 $5.7 $5.1 Inventories) exceeded $5.0 $4.1 Net Debt by $4.0 $3.5 $3.2 billion $3.0 Q4 Q1 Q2 Q3 Q4 2021 2022 2022 2022 2022 Net Debt RMI 10
Slide 11: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$6.7 billion, of which all was unused and available as of 12/31/22 In $’millions Facility Maturity Size Amount Drawn1 364-day RCF Jul 2023 1,100 0 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 3-year European RCF Dec
Slide 12: Strong Earnings Momentum Driving Higher Returns
Strong Earnings Momentum Driving Higher Returns AROIC captures benefits of earnings driven from utilization of additional working capital Bunge Returns (excluding Sugar & Bioenergy) (1) Bunge WACC is at 6.0%. (2) AWACC and AROIC include adjustments for RMI (3) ROIC and AROIC include adjustments for
Slide 13: Increased Earnings Reflected in Rising Discretionary Cash Flow
Increased Earnings Reflected in Rising Discretionary Cash Flow Bunge Performance 2018 – 2022 (1) To reduce the impact of foreign currency movements on book value of equity, CTA was held constant at 12.31.2018 levels for periods commencing 2019 onwards. 13 (2) During the first quarter of 2022, the Co
Slide 14: Full-Year 2023 Outlook
Full-Year 2023 Outlook FY 2023 adjusted EPS of at least $11 per share based on the following expectations(1): • Agribusiness: down vs. a record 2022 • Based on current forward curves, Processing results expected to be slightly up • Merchandising expected to be down vs. strong prior year • Potential
Slide 15: Closing Remarks
Closing Remarks • Further strengthened core business and built relationships with partners • Made progress on commitment to find innovative, sustainable solutions in renewables space • Innovated and invested in plant-based lipids and proteins • Invested in data science and technology • Made signific
Slide 16: Joss
Joss
Slide 17: Agribusiness: Processing and Merchandising Definitions
Agribusiness: Processing and Merchandising Definitions Processing Merchandising • Oilseed origination • Grain origination ‒ Oilseed purchasing, cleaning, drying, ‒ Grains (corn, wheat, barley) purchasing, storing and handling cleaning, drying, storing and handling • Oilseed processing • Grain tradin
Slide 18: Core Segment Volume Highlights
Core Segment Volume Highlights Quarter Ended Year Ended December 31, December 31, In thousands of metric tons 2022 2021 2022 2021 Agribusiness 18,310 21,129 77,492 83,957 #2 Processing 10,601 12,067 44,856 46,383 Merchandising 7,709 9,062 32,636 37,574 Refined and Specialty Oils 2,260 2,353 9,201 9,
Slide 19: Non-GAAP Definitions
Non-GAAP Definitions 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 measures m
Slide 20: Non-GAAP Definitions
Non-GAAP Definitions 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 certain m
Slide 21: Non-GAAP Definitions
Non-GAAP Definitions We also have presented projected adjusted net income per common share for 2023. This information is provided only on a non-GAAP basis without reconciliation to projected net income per common share for 2023, the mostly directly comparable GAAP measure, because the information ne
Slide 22: Non-GAAP Definitions
Non-GAAP Definitions 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 ex
Slide 23: Non-GAAP Definitions
Non-GAAP Definitions 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 Ad
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income Quarter Ended Year Ended December 31, December 31, (US$ in millions) 2022 2021 2022 2021 Net income attributable to Bunge $336 $231 $1,610 $2,078 Adjustment for Mark-to-market timing difference 86 138 246 12 Adjusted for
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended Year Ended December 31, December 31, (US$ in millions) 2022 2021 2022 2021 Net income attributable to Bunge $336 $231 $1,610 $2,078 Interest income (21) (14) (71) (48)
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2022 (1) 2021 2020 2019 2018 Cash provided by (used for) operating activities ($5,549) ($2,894) ($3,535) ($808) ($1,264) Foreign exchange (loss) gain on net debt $101
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-1
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters 31-Dec-22 31
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quar
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 (US$ in milli
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a continuation of the reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables and Timing Adjusted EPS, excluding notables Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters
Slide 32: Bunge