Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q4 2020 Earnings Presentation
31 slides from Bunge's earnings presentation, Feb 10, 2021
Slide 1: 4Q 2020 Earnings Results Review
4Q 2020 Earnings Results Review February 10, 2021
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: 2020 Review
2020 Review • Exceptional results demonstrate earnings power of Bunge’s global platform and benefits of operating model • More global approach and close coordination of commercial and industrial teams improved efficiency and enabled us to capture opportunities as they arose • Announced all originall
Slide 5: Q4 Highlights and Outlook
Q4 Highlights and Outlook • Agribusiness results driven by exceptional execution in a favorable market environment • Particular strength in North America with higher oilseed crush and elevation margins • Edible Oils results driven by Brazil performance, with strong margins in consumer business and b
Slide 6: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Three Months Ended Year Ended December 31, December 31, US$ in millions, except per share data 2020 2019 2020 2019 Net income attributable to Bunge common shareholders-diluted $ 3.74 $ (0.48) $ 7.71 $ (9.34) Adjusted Net income attributable to Bunge common sharehold
Slide 7: Positive Earnings Trend
Positive Earnings Trend 2,000 Bunge Performance 2017 – 2020 $11.50 1,800 Timing Adjusted, Excluding Notables 1,759 $10.50 1,600 1,541 $9.50 $8.30 1,400 1,308 $8.50 1,158 1,189 1,200 $6.95 $7.50 ($ millions) 1,000 877 $5.78 $6.50 800 $5.06 $5.50 671 $4.76 600 $4.50 400 $3.50 $2.47 $2.70 200 $2.50 - $
Slide 8: Focus on Cost Management
Focus on Cost Management 2020 Adjusted Addressable SG&A savings of $50M vs prior year reflecting organizational re-design and culture shift to continuous improvement • 2020 SG&A savings of $50M 1,351 1,358 40 • Organizational savings: ~20% Notable Notable items • Indirect spend: ~80% items ($ millio
Slide 9: Cash Flow Highlights
Cash Flow Highlights Increasingly durable balance sheet as retained cash flow is used to pay down debt Adjusted Funds From Operations (Adjusted FFO) (1) $1,886 $1,096 Retained cash of $1,105M used to $317 $100 reduce debt $316 $524 $365 2019 2020 Adjusted FFO Buybacks Dividends (2) Capex (1) Adjuste
Slide 10: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value YTD Capital Allocation Capital Allocation Priorities 1,886 (254) (34) BBB/Baa2 target credit ratings 1,598 (282) (111) (100) 1,105 Shareholder dividends ($ millions) Reinvestment opportunities Share buybacks 2020 (1) Sustaining Preferred Discretionary
Slide 11: 2020 Cash Flow and Net Debt Evolution
2020 Cash Flow and Net Debt Evolution 12 Price Volume Committed 10 impact Impact Availability 45% 55% 4.1 8 Committed Availability 0.2 4.3 6 3.1 1.1 ($ billions) 4 6.9 2 4.7 0 (2) YE19 Net Debt Retained Change in Others YE20 Net Debt (1) Cash Flow Working Capital Net Debt Commitment Availability (1)
Slide 12: Majority of Net Debt Finances RMI
Majority of Net Debt Finances RMI Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net Debt ex RMI: $0.8 $0.5 $0.9 $0.7 $0.6 At Q4 quarter end, Net Debt ex RMI / Net Debt (%): 17% 10% 16% 11% 9% 91% $6.9 $6.2 of Net Debt was $5.8 used to finance $4.7 $4.8 Readily Marketable $6.3 ($ billions) $5.5 Inventories
Slide 13: Strong Earnings Momentum Drives Higher Returns
Strong Earnings Momentum Drives Higher Returns AROIC captures benefits of earnings driven from utilization of additional working capital Bunge Limited (excluding Sugar & Bioenergy) 15.9% 13.8% 11.5% 10.4% 11.7% 9.7% 9.5% 12.2% 7.9% 10.9% 6.6% 9.1% 9.6% 8.3% 8.1% 8.0% 6.6% 6.5% 5.9% 2015 2016 2017 20
Slide 14: Cash Flow Yield Demonstrates Resilience
Cash Flow Yield Demonstrates Resilience 1,800 Bunge Performance 2017 – 2020 36.0% 1,598 1,600 Discretionary Cash Flow (1) 31.0% 1,400 1,296 26.0% 1,200 25.7% 1,057 21.0% 1,000 22.0% 19.1% 16.0% 749 779 800 721 569 13.7% 13.4% 14.3% 11.0% 600 ($ millions) 8.7% 7% 6.0% 400 200 1.0% 0 -4.0% 2017 2018 2
Slide 15: Full-Year 2021 Outlook
Full-Year 2021 Outlook FY2021 adjusted EPS expected to be at least $6 per share based on the following expectations • Agribusiness: Down vs. 2020 • Based on current market trends and forward curves • Additional upside opportunity potential resulting from strong demand and tight crop supplies • Edibl
Slide 16: Closing Remarks
Closing Remarks • Strong results from transformation and hard work by team • Looking ahead, focus will be on continuously improving and growing the business across the cycle • Platform and operating model aligned with structural shift in consumer demand for food, feed and fuel, presenting compelling
Slide 17: Joss
Joss
Slide 18: Agribusiness: Oilseeds & Grains Definitions
Agribusiness: Oilseeds & Grains Definitions Oilseeds Grains • Oilseed processing • Grain origination ‒ Soybean: U.S., South America, Europe, ‒ Grains (corn, wheat, barley, rice) Asia ‒ Oilseeds (soybean, rapeseed/canola, ‒ Rapeseed/Canola: Europe, Canada sunseed) ‒ Sunseed: Eastern Europe, Argentina
Slide 19: Core Segment Volume Highlights
Core Segment Volume Highlights Three Months Ended Year Ended December 31, December 31, In thousands of metric tons 2020 2019 2020 2019 Agribusiness 35,737 34,976 142,959 139,968 Oilseeds 17,013#2 16,871 67,210 66,388 Grains 18,724 18,105 75,749 73,580 Edible Oil Products 2,414 2,507 9,515 9,606 Mill
Slide 20: 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 21: 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 22: 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 23: 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 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income (loss) Three Months Ended Year Ended December 31, December 31, (US$ in millions) 2020 2019 2020 2019 Net income (loss) attributable to Bunge $551 $(51) $1,145 $(1,280) Adjustment for Mark-to-market timing difference (8)
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Year Ended December 31, December 31, (US$ in millions) 2020 2019 2020 2019 Net income (loss) attributable to Bunge $551 ($51) $1,145 ($1,280) Interest income (4) (
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2020 2020 Q3 TTM (1) 2020 Q2 TTM 2020 Q1 TTM 2019 2018 2017 Cash provided by (used for) operating activities ($3,535) ($1,621) ($1,226) ($845) ($808) ($1,264) ($1,975)
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters Quarters Quarters December 31, September 30, June 30, March
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters Quarters Quarters Decembe
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarter
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Total Equity to Book Equity December 31, September 30, June 30, March 31, December 31, December 31, December 31, (US$ in millions) 2020 2020 2020 2020 2019 2018 2017 Total equity $6,206 $5,452 $5,209 $4,971 $6,031 $6,377 $7,357 Convertible prefere
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