Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q1 2024 Earnings Presentation
32 slides from Bunge's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 Earnings Results Review
Q1 2024 Earnings Results Review April 24, 2024
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 (1) • Off to a good start in 2024 • Continued focus on execution across global footprint • Significant progress in integration planning with Viterra • Announced additional growth initiatives, particularly around renewable feedstocks and regenerative agriculture efforts • De
Slide 5: Bunge Global SA Earnings Highlights
Bunge Global SA Earnings Highlights Quarter Ended March 31, (US$ in millions, except per share data) 2024 2023 Net income per share-diluted (a) $ 1.68 $ 4.15 Adjusted Net income per share-diluted (a) (b) $ 3.04 $ 3.26 Adjusted Core Segment EBIT (b) (c) $ 719 $ 756 Agribusiness (d) $ 487 $ 512 Proces
Slide 6: Earnings Trend
Earnings Trend Strong trend reflects a combination of a favorable market environment and excellent execution Bunge Performance 2020 – Q1 2024 TTM Timing Adjusted, Excluding Notables 3500 20 3,031 3,012 18 3000 2,855 2,530 16 ($ millions) 2500 14 $13.91 $13.66 $13.45 12 2000 1,759 $12.93 10 1500 8 $8
Slide 7: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Capital Allocation Priorities 101 95 BBB+/Baa2/BBB Credit Ratings(2) ($ million) 135 Shareholder dividends Reinvestment opportunities Share buybacks 400 2024 Sustaining Discretionary Dividends to Growth/Prod. Share Retained Adj. FFO(1) Capex Cash Flow(
Slide 8: Readily Marketable Inventory (RMI) Continues to Exceed Net Debt
Readily Marketable Inventory (RMI) Continues to Exceed Net Debt $7.2 $7.2 At Q1 quarter end: $6.2 $5.8 $6.2 • RMI exceeded Net ($ billions) Debt by $4.0B $3.6 $3.0 $2.7 $2.3 $2.2 • Adjusted Leverage Ratio(1): 0.1x Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 Net Debt RMI (1) Adjusted Leverage Ratio is a
Slide 9: Liquidity Position Remains Strong
Liquidity Position Remains Strong In $ millions Facility Maturity Commitments Amount Drawn 364-day RCF(1) Apr 2025 1,100 0 3-year European RCF Oct 2026 3,500 0 5-year US RCF Mar 2029 3,200 0 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 Total(2) 8,665 0 • An additional $8B of term loan commi
Slide 10: Strong Earnings Continue To Drive High Returns
Strong Earnings Continue To Drive High Returns AROIC captures benefits of increased earnings and reduction in net debt Bunge Returns (excluding Sugar & Bioenergy)(1, 2, 3) 21.6% 19.9% 18.4% 17.7% 15.9% 15.0% 13.9% 14.3% 13.9% 12.2% 7.7% 2020 2021 2022 2023 Q1-24 TTM AROIC AWACC ROIC (1) Bunge WACC i
Slide 11: Strength of Earnings Reflected in Discretionary Cash Flow
Strength of Earnings Reflected in Discretionary Cash Flow Bunge Performance 2020 – Q1 2024 TTM(1,2) 0.5 2,051 0.45 1,978 2000 1,852 0.4 1,732 1,632 0.35 1500 0.3 23.6% 0.25 20.1% 20.0% 1000 18.2% 0.2 16.9% 0.15 8.2% 500 0.1 0.05 0 0 2020 2021 2022 2023 Q1-24 TTM Discretionary Cash Flow Cash Flow Yie
Slide 12: Full-Year 2024 Outlook
Full-Year 2024 Outlook Taking into account Q1 results and the current margin environment and forward curves, we continue to forecast FY 2024 adjusted EPS of ~$9.00(1,2) • Agribusiness: down vs. 2023 • Primarily driven by Processing where margins remain compressed in most regions • Refined and Specia
Slide 13: Closing Remarks
Closing Remarks • Remain focused on strong execution as we work to help address the world’s food security needs • Working toward closing combination with Viterra, which will provide us with increased diversification and optionality, with broader capabilities to serve farmers and end-consumers • Cont
Slide 14: Joss
Joss
Slide 15: 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 16: Core Segment Volume Highlights
Core Segment Volume Highlights Quarter Ended March 31, In thousands of metric tons 2024 2023 Agribusiness (1) 20,192 18,386 #2 Processing 10,402 10,377 Merchandising 9,790 8,009 Refined and Specialty Oils (2) 2,195 2,146 Milling (3) 874 821 (1) In our Agribusiness segment, reported Processing volume
Slide 17: 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 18: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, Adjusted Corporate and Other 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 p
Slide 19: Non-GAAP Definitions
Non-GAAP Definitions We also have presented projected adjusted net income per share - diluted for 2024. This information is provided only on a non-GAAP basis without reconciliation to projected net income per share - diluted for 2024, the mostly directly comparable U.S. GAAP measure, because the inf
Slide 20: 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 21: 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 22: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Leverage Ratio To facilitate the determination of Bunge’s financial strength and flexibility, Bunge uses the non-GAAP measure of Adjusted Leverage Ratio. Bunge believes the ratio is commonly used by credit rating agencies and fixed income investors as an indicator of de
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income Quarter Ended March 31, (US$ in millions) 2024 2023 Net income (loss) attributable to Bunge $244 $632 Adjustment for Mark-to-market timing difference 136 (128) Adjusted for certain (gains) and charges: Acquisition and in
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended March 31, (US$ in millions) 2024 2023 Net income (loss) attributable to Bunge $244 $632 Interest income (42) (43) Interest expense 108 112 Income tax expense (benefit)
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income to Adjusted EBITDA (US$ in millions) 2024 Q1 TTM Net income $1,930 Interest income (147) Interest expense 512 Income tax expense (benefit) 648 Depreciation and amortization 461 Certain (gains) and charges(1) 229 Mark-to-market timing difference (109) Adjusted EBITD
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Leverage Ratio adjusted for certain gains and charges, MTM timing differences, RMI Credit(1), and funding from Trade Receivables Securitization Program (US$ in millions) 2024 Q1 TTM Gross Debt $5,095 Cash and Cash Equivalents (2,939) Net Debt $2,156 Adjustments: RMI $6,218 RM
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2024 Q1 YTD 2024 Q1 TTM 2023 2022 (1) 2021 2020 Cash provided by (used for) operating activities $994 $3,371 $3,308 ($5,549) ($2,894) ($3,535) Foreign exchange (loss)
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-24 31
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-24 31-Dec-23 31-Dec-22 31-Dec-21 31-Dec-2
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Adjusted Total Segment EBIT Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-24 31-Dec-23 31-Dec-22 31-Dec-21 31-Dec-20 (US$ in millions) Net Inco
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a continuation of the reconciliation of Net income (loss) attributable to Bunge to Adjusted Total Segment EBIT and Adjusted EPS Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-24 31-Dec-23 31-Dec-22 31-Dec-21
Slide 32: Slide 32