Slide 1: Q3 2022 Earnings Results Review
Q3 2022 Earnings Results Review October 26, 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: Q3 Highlights and Outlook
Q3 Highlights and Outlook • Delivered strong results in shifting operating environment through outstanding execution and coordination across global platform • Continued progress against longer-term growth opportunities • Finding innovative, sustainable solutions in renewable fuels with recent partne
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions, except per share data) 2022 2021 2022 2021 Net income per common share-diluted $ 2.49 $ 4.28 $ 8.30 $ 12.12 Adjusted Net income per common share-diluted (a) $ 3.45 $ 3.72 $ 10.66 $ 9.43 Ad
Slide 6: Positive Earnings Trend
Positive Earnings Trend Strong earnings continue through Q3’22 Bunge Performance 2018 – Q3 2022 TTM Timing Adjusted, Excluding Notables 3,000 2,795 $16.00 2,530 $14.00 2,500 $14.17 $12.00 2,000 1,759 $12.93 $10.00 ($ millions) 1,500 1,158 $8.00 877 $8.30 $6.00 1,000 $4.00 500 $4.76 $2.00 $2.70 - $0.
Slide 7: Continuous Focus on Costs
Continuous Focus on Costs 83 • Q3 YTD Addressable SG&A increase of $34M vs PY • Return to more normal 49 34 activities post-pandemic 896 979 • Related to investments to ($ millions) drive future growth • $49M net cost impact from specified items including performance-based pay, FX, inflation and cha
Slide 8: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value YTD Capital Allocation Capital Allocation Priorities (184) 1,788 (8) (248) 1,596 (168) BBB/Baa2 target credit ratings 200 (200) Shareholder dividends ($ millions) 980 Reinvestment opportunities Share buybacks 2022 Sustaining Preferred Discretionary D
Slide 9: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $10.0 $8.9 $9.0 $8.4 At Q3 quarter end, $8.0 $7.0 RMI (Readily $6.8 ($ billions) $7.0 $6.7 $6.5 $6.4 $6.1 Marketable $6.0 $5.4 $5.7 $5.1 Inventories) exceeded $5.0 $4.1 Net Debt by $4.0 $2.3 billion $3.0 Q2 Q3 Q4 Q1 Q2 Q3 2021 2021 2021 2022 2022 2022 Net Debt RMI 9
Slide 10: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$7 billion, of which ~$6.7 billion was unused and available as of September 30, 2022. In $’millions Facility Maturity Size Amount Drawn1 364-day RCF Jul 2023 1,100 0 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 3-ye
Slide 11: Increased Earnings Driving Higher Returns
Increased Earnings Driving Higher Returns AROIC captures benefits of increased earnings and reduction in net debt Bunge Returns (excluding Sugar & Bioenergy) 22.2% 19.9% 15.9% 15.2% 9.7% 12.2% 13.9% 7.9% 6.6% 8.1% 6.5% 2018 2019 2020 2021 Q3-22 TTM AROIC AWACC ROIC (1) Bunge WACC is at 6.0%. (2) AWA
Slide 12: Increased Earnings Reflected in Rising Discretionary Cash Flow
Increased Earnings Reflected in Rising Discretionary Cash Flow Bunge Performance 2018 – 2022 2,500 40.0% 2,169 38.0% 36.0% 34.0% 2,000 32.0% 1,732 30.0% 1,632 28.0% 26.0% 1,500 24.0% 22.0% 23.6% 20.0% 21.7% 18.0% 1,000 20.1% 16.0% 783 755 14.0% 12.0% ($ millions) 500 12.7% 12.5% 10.0% 8.0% 7% 6.0% 4
Slide 13: Full-Year 2022 Outlook
Full-Year 2022 Outlook Increasing FY2022 adjusted EPS to at least $13.50 per share, reflecting Q3 results and the current environment • Agribusiness: Down vs. 2021 • Increasing forecast from prior outlook • Refined and Specialty Oils: Up vs 2021 • Increasing forecast from prior outlook • Milling: Up
Slide 14: Closing Remarks
Closing Remarks • Investing in the business to capture the growth ahead of us • Physical infrastructure & platform enhancements • Strategic partnerships, greenfield and brownfield opportunities • Technology & Innovation • Digital tools to enable interconnectivity, automation, and machine learning •
Slide 15: Joss
Joss
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 Three Months Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2022 2021 2022 2021 Agribusiness 19,622 19,534 59,182 62,827 #2 Processing 11,382 10,867 34,256 34,316 Merchandising 8,240 8,667 24,926 28,511 Refined and Specialty Oils 2,316
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 We also have presented projected adjusted net income per common share for 2022. This information is provided only on a non-GAAP basis without any reconciliation to projected net income per common share for 2022, the mostly directly comparable GAAP measure, due to the inabilit
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) Three Months Ended Nine Months Ended September 30, September 30, (US$ in millions) 2022 2021 2022 2021 Net income (loss) attributable to Bunge $380 $653 $1,274 $1,847 Adjustment for Mark-to-market timing di
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Nine Months Ended September 30, September 30, (US$ in millions) 2022 2021 2022 2021 Net income (loss) attributable to Bunge $380 $653 $1,274 $1,847 Interest income
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2022 Q3 YTD (1) 2022 Q3 TTM (1) 2021 2020 2019 2018 Cash provided by (used for) operating activities ($5,031) ($6,283) ($2,894) ($3,535) ($808) ($1,264) Foreign exchan
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters 30-Sep-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-1
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters 30-Sep-22 31
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quar
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters 30-Sep-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 (US$ 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 Trailing Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters 4 Quarters 4 Quarters
Slide 31: Slide 31