Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q1 2022 Earnings Presentation
31 slides from Bunge's earnings presentation, Apr 27, 2022
Slide 1: Q1 2022 Earnings Results Review
Q1 2022 Earnings Results Review April 27, 2022
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: Q1 Highlights and Outlook
Q1 Highlights and Outlook • Continued to build on positive momentum across all segments • Agribusiness continues to demonstrate agility in dynamic, rapidly changing market conditions • Refined and Specialty Oils benefiting from favorable demand trends, as well as supply chain and innovation capabili
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended March 31, (US$ in millions, except per share data) 2022 2021 Net income per common share-diluted $ 4.48 $ 5.52 Adjusted Net income per common share-diluted (a) $ 4.26 $ 3.13 Adjusted Core Segment EBIT (a) (b) $ 858 $ 737 Agribusiness (c) $ 627 $ 601 Pr
Slide 6: Positive Earnings Trend
Positive Earnings Trend Ten consecutive quarters of increased earnings Bunge Performance 2018 – Q1 2022 TTM Timing Adjusted, Excluding Notables 3,000 2,530 2,659 $16.00 $14.00 2,500 $14.07 $12.00 2,000 1,759 $12.93 $10.00 ($ millions) 1,500 1,158 $8.00 1,000 877 $8.30 $6.00 $4.00 500 $4.76 $2.00 - $
Slide 7: Disciplined Cost Management
Disciplined Cost Management Q1 2022 Adjusted Addressable SG&A savings ~flat vs. PY 36 • Q1 SG&A increase of $2M 2 308 vs PY Notable items 34 • $34M net cost impact from 271 307 ($ millions) specified items including performance-based pay, FX, inflation, and changes in portfolio 1Q21 SG&A Change in U
Slide 8: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value YTD Capital Allocation Capital Allocation Priorities (49) (8) (74) 696 639 (57) BBB/Baa2 target credit ratings 508 Shareholder dividends ($ millions) Reinvestment opportunities Share buybacks 2022 Sustaining Preferred Discretionary Dividends to Growt
Slide 9: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $8.9 At Q1 quarter end, $7.4 RMI (Readily ($ billions) $6.8 $7.0 $6.8 $6.7 Marketable $6.5 $6.1 Inventories) exceeded $5.4 $5.1 Net Debt by $2.8 billion Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Net Debt RMI 9
Slide 10: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$5.8 billion, of which ~$5 billion was unused and available as of March 31, 2022 In $’millions Facility Maturity Size Amount Drawn (1) 364-day RCF Jul 2022 1,000 100 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 3-ye
Slide 11: Increased Earnings Driving Higher Returns
Increased Earnings Driving Higher Returns AROIC captures benefits of earnings driven from utilization of additional working capital Bunge Limited Returns (excluding Sugar & Bioenergy) 21.0% 19.9% 15.9% 13.9% 14.4% 9.7% 12.2% 7.9% 8.1% 6.6% 6.5% 2018 2019 2020 2021 Q1-22 TTM AROIC AWACC ROIC (1) Bung
Slide 12: Increased Earnings Reflected in Discretionary Cash Flow
Increased Earnings Reflected in Discretionary Cash Flow Bunge Performance 2018 – 2022 Discretionary Cash Flow (1,2) 2,000 1,876 40.0% 38.0% 1,800 1,732 36.0% 1,632 34.0% 1,600 32.0% 30.0% 1,400 28.0% 26.0% 1,200 24.0% 22.0% 1,000 23.6% 20.0% 783 755 20.1% 20.2% 18.0% 800 16.0% ($ millions) 14.0% 600
Slide 13: Full-Year 2022 Outlook
Full-Year 2022 Outlook Increasing FY2022 adjusted EPS to at least $11.50 per share based on the following expectations: • Agribusiness: Down vs. 2021 • Increasing forecast from prior outlook reflecting strong Q1 performance • Upside potential if strong demand and tight crop supplies continue • Refin
Slide 14: Closing Remarks
Closing Remarks • Resilient team has remained committed to helping customers solve problems through unprecedented volatility over last three years • Expect continued volatility as result of uncertainty around: • War in Ukraine • Crop production levels • Government policy reactions • COVID resurgence
Slide 15: Q&A
Q&A
Slide 16: 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 17: Core Segment Volume Highlights
Core Segment Volume Highlights Quarter Ended March 31, In thousands of metric tons 2022 2021 Agribusiness 20,071 21,644 #2 Processing 10,774 11,116 Merchandising 9,297 10,528 Refined and Specialty Oils 2,295 2,176 Milling 1,161 1,041 17 17
Slide 18: 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 19: 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 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Projected adjusted net income per common share for 2022 has also been presented. This information is provided only on a non-GAAP basis without reconciliation to projected net income per common share for 2022, the mostly directly comparable GAAP measure, due to the inability a
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 (loss) attributable to Bunge to Adjusted Net income (loss) Quarter Ended March 31, (US$ in millions) 2022 2021 Net income (loss) attributable to Bunge $688 $831 Adjustment for Mark-to-market timing difference (62) (195) Adjusted for certain (gains) and charges: Ukr
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended March 31, (US$ in millions) 2022 2021 Net income (loss) attributable to Bunge $688 $831 Interest income (9) (9) Interest expense 111 73 Income tax expense (benefit) 108
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2022 Q1 YTD 2022 Q1 TTM (1) 2021 2020 2019 2018 Cash provided by (used for) operating activities ($2,656) ($4,563) ($2,894) ($3,535) ($808) ($1,264) Foreign exchange (
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-1
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-22 31
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Qu
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-21 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 (US$ in milli
Slide 30: 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 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters
Slide 31: Slide 31