Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q4 2023 Earnings Presentation
33 slides from Bunge's earnings presentation, Feb 7, 2024
Slide 1: Q4 2023 Earnings Results Review
Q4 2023 Earnings Results Review February 7, 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: FY2023 & Q4 Highlights and Outlook
FY2023 & Q4 Highlights and Outlook (1) • Significant strategic accomplishments during 2023 • Continuing to make progress on Viterra transaction • Executing on a number of additional strategic growth initiatives • Reduced oilseed processing unplanned downtime to historic low • Continuing to improve p
Slide 5: Bunge Global SA Earnings Highlights
Bunge Global SA Earnings Highlights Three Months Ended Year Ended December 31, December 31, (US$ in millions, except per share data) 2023 2022 2023 2022 Net income per share-diluted (a) $ 4.18 $ 2.21 $ 14.87 $ 10.51 Adjusted Net income per share-diluted (a) (b) $ 3.70 $ 3.24 $ 13.66 $ 13.91 Adjusted
Slide 6: Earnings Trend
Earnings Trend Strong trend reflects a combination of a favorable market environment and excellent execution Bunge Performance 2019 – 2023 Timing Adjusted, Excluding Notables 3,500 $20.00 3,031 3,000 2,855 $18.00 2,530 $16.00 2,500 $14.00 ($ millions) 2,000 1,759 $12.93 $13.91 $13.66 $12.00 $10.00 1
Slide 7: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Capital Allocation Priorities 2,466 488 BBB+/Baa2/BBB Credit Ratings2 1,978 383 ($ million) 634 Shareholder dividends 600 Reinvestment opportunities 361 Share buybacks 2023 Sustaining Discretionary Dividends to Growth/Prod. Share Buybacks Retained Adj.
Slide 8: Capex Update
Capex Update $1.2-$1.4B • 2024 increase in discretionary spend $1,122M reflects growth pipeline of on-going 60% multi-year projects 55%* $555M • Growth investments focused on capacity expansion, debottlenecking & new 45% 40% capabilities: 45% 55% • Origination, crush, refining, digital transformatio
Slide 9: Readily Marketable Inventory (RMI) Continues to Exceed Net Debt
Readily Marketable Inventory (RMI) Continues to Exceed Net Debt $7.2 $7.2 $6.7 At Q4 quarter end: $6.2 $5.8 • RMI exceeded Net ($ billions) Debt by $3.5B $3.5 $3.6 $3.0 $2.7 • Adjusted Leverage $2.3 Ratio(1): 0.2x Q4 Q1 Q2 Q3 Q4 2022 2023 2023 2023 2023 Net Debt RMI 1. Adjusted Leverage Ratio is a n
Slide 10: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$5.7 billion, all of which was unused and available as of December 31, 2023. In $ millions Facility Maturity Size Amount Drawn1 364-day RCF Jun 2024 1,100 0 3-year European RCF Oct 2026 1,750 0 5-year US RCF Jul 2026 1,950 0
Slide 11: 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% 15.9% 14.3% 13.9% 15.0% 9.7% 12.2% 8.1% 7.7% 2019 2020 2021 2022 2023 AROIC AWACC ROIC (1) Bunge WACC is at 7.0%
Slide 12: Strength of Earnings Reflected in Discretionary Cash Flow
Strength of Earnings Reflected in Discretionary Cash Flow 2,500 Bunge Performance 2019 – 20231,2 40.0% 38.0% 36.0% 2,051 1,978 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% 20.1% 18.0% 20.0% 1,000 18.2% 16.0% 755 14.0% 12.0% 8.2% 12.5% 10.0% 500 8.0% 6.0% 4.0% 2.0% 0
Slide 13: Full-Year 2024 Outlook
Full-Year 2024 Outlook Taking into account the current margin environment and forward curves, we are forecasting FY 2024 adjusted EPS of ~$9.00(1,2) • Agribusiness: down vs. 2023 • Primarily driven by Processing where margins have compressed in most regions • Merchandising expected to be slightly do
Slide 14: Closing Remarks
Closing Remarks • Clear set of priorities for 2024 to drive continuous improvement of our business • Working toward closing combination with Viterra which will provide us with more diversification and capabilities to serve customers • Continuing to invest in our people, global infrastructure and str
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 Year Ended December 31, December 31, In thousands of metric tons 2023 2022 2023 2022 Agribusiness (1) #2 20,522 18,310 76,019 77,492 Processing 11,088 10,601 44,727 44,856 Merchandising 9,434 7,709 31,292 32,636 Refined and Specialty Oils (2) 2,272 2
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income Quarter Ended Year Ended, December 31, December 31, (US$ in millions) 2023 2022 2023 2022 Net income (loss) attributable to Bunge $616 $336 $2,243 $1,610 Adjustment for Mark-to-market timing difference (160) 86 (356) 246
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended Year Ended December 31, December 31, (US$ in millions) 2023 2022 2023 2022 Net income (loss) attributable to Bunge $616 $336 $2,243 $1,610 Interest income (27) (21) (14
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income to Adjusted EBITDA (US$ in millions) 2023 Net income $2,337 Interest income (148) Interest expense 516 Income tax expense (benefit) 714 Depreciation and amortization 451 Certain (gains) and charges(1) 158 Mark-to-market timing difference (481) Adjusted EBITDA $3,54
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Leverage Ratio adjusted for certain gains and charges, MTM timing differences, RMI Credit(1), and funding from Trade Receivables Securitization Program (US$ in millions) 2023 Gross Debt $4,882 Cash and Cash Equivalents (2,602) Net Debt $2,280 Adjustments: RMI $5,837 RMI Facto
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2023 2022 (1) 2021 2020 2019 Cash provided by (used for) operating activities $3,308 ($5,549) ($2,894) ($3,535) ($808) Foreign exchange (loss) gain on net debt $281 $1
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Dec-23 31
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Dec-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-1
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Adjusted Total Segment EBIT Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Dec-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 (US$ in millions) Net Inco
Slide 32: 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-Dec-23 31-Dec-22 31-Dec-21 31-Dec-20
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