Slide 1: Q2 2019 Results Review
Q2 2019 RESULTS REVIEW July 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: Leadership changes help drive strategic priorities
Leadership changes help drive strategic priorities Chief Financial Officer Chief Risk Officer John Neppl Robert Wagner 3 | Q2 2019 RESULTS REVIEW
Slide 4: Today's agenda
Today’s agenda Q2 highlights Portfolio optimization Outlook Financial performance Q&A 4 | Q2 2019 RESULTS REVIEW
Slide 5: Q2 highlights
Q2 highlights Core business generally in-line Bunge Ventures, Beyond Meat Inc. Key strategic priorities New global operating model 5 | Q2 2019 RESULTS REVIEW
Slide 6: Bunge and BP to create a leading bioenergy company
Bunge and BP to create a leading bioenergy company • 50-50 Joint Venture between BP and Bunge’s Brazilian Sugar and Bioenergy businesses • Bunge will contribute $700 million of non-recourse debt to the Joint Venture and will also receive a $75 million cash payment from BP(1) • Closing expected in Q4
Slide 7: Joint venture creates top-tier industry player
Joint venture creates top-tier industry player 2nd largest(1) player in Brazil by effective crushing with conservative capital structure Net Debt / Effective Crushing (R$ / ton) 149 (2) 97 (4) 172 (2) 152(3) n.a. 60 Effective Crushing1 (million ton) + 28 27 20 20 19 9 … RAIZEN BG+BP BIOSEV SÃO MARTI
Slide 8: Transaction meets important criteria
Transaction meets important criteria Consistent with strategic priorities Strong partner with BP, one of the world’s leading energy companies Immediate liquidity and deconsolidation Provides path for future exit 8 | Q2 2019 RESULTS REVIEW
Slide 9: 2019 Outlook
2019 Outlook BUNGE
Slide 10: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Six Months Ended June 30, June 30, US$ in millions, except per share data 2019 2018 2019 2018 Net income (loss) attributable to Bunge $ 214 $ (12) $ 259 $ (33 ) Net income (loss) per common share from continuing operations-diluted $ 1.43 $ (0.20) $ 1.7
Slide 11: 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 $1,400 $1,200 $1,089 $200 $300 #2$884 $257 $800 $241 $281 $316 $305 $400 $784 $649 $662 $493 $538 $0 (2) 2015 2016 2017 2018 Q2 2019 TTM (1) Adjusted Funds From Opera
Slide 12: Leverage is significantly lower ex-RMI
Leverage is significantly lower ex-RMI At Q2 quarter-end, ~70% of Net Debt was used to finance Readily Marketable Inventories (RMI) US$ in billions Net Debt ex RMI $1.1 $2.3 $1.3 $0.5 $1.0 $1.7 #2 $7.8 $7.0 $6.5 $5.5 $6.1 $5.0 $5.4 $5.5 $5.7 $4.5 $4.5 $4.4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 Net Debt RMI 12
Slide 13: Capital allocation process shows discipline
Capital allocation process shows discipline Committed to Investment Grade Credit Rating BBB / Baa2 target YTD Adjusted FFO $589 million Asset Consistent Comprehensive Strategic Stewardship Returns Vetting Returns #2 EHSS(1) & Shareholder Organic & Strategic Stock Maintenance Dividends Growth(2) Repu
Slide 14: Return on invested capital nearly at target
Return on invested capital (ROIC) nearly at target Core ROIC was 190 bps above WACC in Q2 vs. our 200 bps target 12.0% 10.0% ROIC Target = 9% 8.9% 8.0% WACC = 7% 7.2% #2 6.0% 4.0% 2.0% 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 2019 Trailing 4Q ROIC with Sugar & B
Slide 15: Closing Remarks and Q&A
Closing Remarks and Q&A BUNGE
Slide 16: Agribusiness | Oilseeds & Grains definitions
Agribusiness | Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination • Grains (corn, wheat, barley, rice) • Soybean: U.S., South America, Europe, Asia • Oilseeds (soybean, rapeseed/canola, • Rapeseed/Canola: Europe, Canada sunseed) #2 • Sunseed: Eastern Europe, Argen
Slide 17: Segment volume highlights
Segment volume highlights Quarter Ended Six Months Ended June 30, June 30, In thousands of metric tons 2019 2018 2019 2018 Agribusiness 34,009 37,398 68,438 73,203 Oilseeds 16,990 #2 16,650 33,478 31,762 Grains 17,019 20,748 34,960 41,441 Edible Oil Products 2,328 2,261 4,637 4,269 Milling Products
Slide 18: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures • Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT, excludes EBIT attributable to noncontrolling interest and is the aggregate o
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations Below is a reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended Six Months Ended June 30, June 30, (US$ in millions) 2019 2018 2019 2018 Net income (loss) attributable to Bunge $ 214 $ (12) $ 259 $ (33) Interest income (7)
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations 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 Six Months Ended June 30, June 30, (US$ in millions, except per share data) 2019 2018 2019 2018
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations Return on Invested Capital excluding certain gains and charges Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarter Quarter Quarter Quarter Quarter Average Average Average Average Average June 30, December 31, December 31, December 31, December 31, (US$ in millions
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations 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 Quarter Average Quarter Average Quarter Average Quarter Average Quarter Average June 30, December 31, December 31, Decem
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations 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 Quarter Average Quarter Average #2 Quarter Av
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations Cash provided by (used for) operating activities to Adjusted FFO reconciliation US$ in millions 2015 2016 2017 2018 Q2'19 TTM (1) Cash provided by (used for) operating activities $ 610 $ 446 $ (1,975) $ (1,264) $ 1,202 Foreign exchange (loss) gain on net debt 213 (80) (21) (
Slide 25: Thank you
Thank you BUNGE