Slide 1: Q3 2019 Results Review
Q3 2019 RESULTS REVIEW October 2019
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 • Q3 highlights • Key priorities update • Outlook Financial performance Q&A 3 | Q3 2019 RESULTS REVIEW
Slide 4: CEO comments
CEO comments Agribusiness managed challenging markets well Food & Ingredients exceeded expectations behind strength in Edible Oils Brazil sugarcane milling transaction on track to close before year-end Made progress on streamlining global business structure Expect a decline in 2019 full-year earning
Slide 5: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Nine Months Ended September 30, September 30, 2019 US$ in millions, except per share data 2019 2018 2019 2018 Net income (loss) attributable to Bunge $ (1,488) $ 365 $ (1,229) $ 332 Net income (loss) per common share from continuing operations-diluted
Slide 6: Sugar JV deconsolidation equity impact
Sugar JV deconsolidation equity impact • Q3 2019 Total Equity US$ in millions was reduced by a $1,524 million impairment charge $6,378 $(1,524)2 $6,140 $1,491 related to the classification of Sugar $(205) and Bioenergy $4,649 operations as held for sale • In Q4 2019, when the JV transaction closes,
Slide 7: Durable cash flow generation through the cycle
Durable cash flow generation through the cycle Adjusted Funds From Operations (Adjusted FFO) (1) US$ in millions $1,600 $1,477 $1,416 $1,200 $1,089 $200 $1,009 $300 $884 #2 $257 $800 $241 $281 $317 $305 $400 $784 $649 $662 $493 $553 $0 2015 2016 2017 2018 Q3 2019 TTM (2) (1) Adjusted Funds From Oper
Slide 8: Majority of net debt finances RMI
Majority of net debt finances RMI At Q3 quarter-end, ~70% of Net Debt was used to finance Readily Marketable Inventories (RMI) US$ in billions Net Debt ex RMI $1.1 $2.3 $1.3 $0.5 $1.0 $1.7 $1.8 $7.8 $7.0 #2 $6.5 $5.5 $6.1 $6.2 $5.0 $5.4 $5.5 $5.7 $4.5 $4.5 $4.4 $4.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 Ne
Slide 9: Liquidity position is comfortable
Liquidity position is comfortable Bunge has committed credit facilities of ~$5.0 billion, of which ~$4.1 billion was available at September 30, 2019 (US$ million) Amount Drawn Facility Maturity Size Sept 30, 2019 CP Program / Liquidity Facility Dec 2023 $600 $550 2020 Revolving Credit Facility Dec 2
Slide 10: Capital allocation process shows discipline
Capital allocation process shows discipline Committed to Investment Grade Credit Rating BBB / Baa2 target YTD Adjusted FFO $854 million Asset Consistent Comprehensive Strategic Stewardship Returns Vetting Returns #2 EHSS (1) & Shareholder Organic & Strategic Stock Repurchases Maintenance Dividends G
Slide 11: Return on invested capital (ROIC) trend
Return on invested capital (ROIC) trend 12% 10% ROIC Target = 9% 8% WACC = 7% 7.0% 6% #2 4% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 2018 2019 Trailing 4Q ROIC ex Sugar & Bioenergy Segment • Reconciliation to the most directly comparable U.S. GAAP measure is prov
Slide 12: Closing Remarks and Q&A
Closing Remarks and Q&A BUNGE
Slide 13: Agribusiness | Oilseeds & Grains definitions
Agribusiness | Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination • Grains (corn, wheat, barley, rice) • Soybean: U.S., South America, Europe, Asia • Oilseeds (soybean, rapeseed/canola, • Rapeseed/Canola: Europe, Canada sunseed) #2 • Sunseed: Eastern Europe, Argen
Slide 14: Segment volume highlights
Segment volume highlights Quarter Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2019 2018 2019 2018 Agribusiness 36,554 37,690 104,992 110,893 #2 Oilseeds 16,039 16,233 49,517 47,995 Grains 20,515 21,457 55,475 62,898 Edible Oil Products 2,462 2,332 7,099 6,601 Mill
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures • Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT, excludes EBIT attributable to noncontrolling interest and is the aggregate o
Slide 16: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions) 2019 2018 2019 2018 Net income (loss) attributable to Bunge $ (1,488) $ 365 $ (1,229) $ 332 Inte
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of Net income (loss) attributable to Bunge to Net income (loss), adjusted (excluding certain gains & charges and discontinued operations): Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions, except per share data) 2019
Slide 18: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding Sugar and Bioenergy segment EBIT and certain gains and charges Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters September 30, December 31, December 31, December 31, December 31, (US$
Slide 19: Non-GAAP reconciliation
Non-GAAP reconciliation Income before income tax utilized for ROIC calculation Below is a reconciliation of Income from continuing operations before income tax to Return before income tax, adjusted: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters S
Slide 20: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation US$ in millions Q3'19 TTM (1) 2018 2017 2016 2015 Cash provided by (used for) operating activities $708 $(1,264) $(1,975) $446 $610 Foreign exchange (loss) gain on net debt (157) (139) (21) (80) 2
Slide 21: Thank you
Thank you BUNGE