Slide 1: 2Q 2021 Earnings Results Review
2Q 2021 Earnings Results Review July 28, 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 • Earnings Baseline • Closing Remarks • Q&A 3
Slide 4: Q2 Highlights and Outlook
Q2 Highlights and Outlook • Q2 results better than expected in all segments • Agribusiness exceeded expectations, effectively managed trade flows and capacity utilization • Refined and Specialty Oils results up in most regions with particular strength in North America from foodservice and renewable
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended Six Months Ended June 30, June 30, US$ in millions, except per share data 2021 2020 2021 2020 Net income per common share-diluted $ 2.37 $ 3.47 $ 7.85 $ 2.14 Adjusted Net income per common share-diluted (a) $ 2.61 $ 1.88 $ 5.72 $ 2.80 Adjusted Core Seg
Slide 6: Positive Earnings Trend
Positive Earnings Trend Seven consecutive quarters of increased earnings Bunge Performance 2017 – Q2 2021 TTM Timing Adjusted, Excluding Notables 2,500 2,275 $13.50 2,000 $11.26 1,759 $11.50 1,500 $9.50 ($ millions) $8.30 1,158 $7.50 1,000 877 671 $4.76 $5.50 500 $2.47 $2.70 $3.50 - $1.50 2017 2018
Slide 7: Focus on Cost Management
Focus on Cost Management Q2 YTD Adjusted Addressable SG&A savings of $20M vs PY 17 • Q2 YTD SG&A savings of $20M 641 − Organizational savings: ~20% Notable items − Indirect spend: ~80% ($ millions) 3 585 20 568 • $3M net cost impact from specified items including performance-based pay, FX, inflation
Slide 8: 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 $1,969 TTM Q2’21 Retained cash of $1,282M used to reduce debt $100 $316 $316 $365 $371 2020 Q2 2021 TTM Adjusted FFO Buybacks Dividends (2)
Slide 9: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value YTD Capital Allocation Capital Allocation Priorities 900 (76) (17) 807 BBB/Baa2 target credit ratings (141) (57) 609 Shareholder dividends ($ millions) Reinvestment opportunities Share buybacks Q2 YTD Sustaining Preferred Discretionary Dividends to Gro
Slide 10: RMI Now Exceeding Net Debt
RMI Now Exceeding Net Debt $7.4 $6.9 $7.0 At Q2 quarter end, $6.8 $6.7 $6.2 $6.3 RMI (Readily ($ billions) $5.8 Marketable $5.5 $4.9 Inventories) exceeded Net Debt by Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2021 2021 $300M Net Debt RMI 10
Slide 11: Strong Earnings Momentum Drives Higher Returns
Strong Earnings Momentum Drives Higher Returns AROIC captures benefits of earnings driven from utilization of additional working capital Bunge Limited (excluding Sugar & Bioenergy) 18.4% 15.9% 9.7% 13.0% 7.9% 12.2% 6.6% 6.6% 8.1% 6.5% 5.9% 2017 2018 2019 2020 Q2-21 TTM AROIC AWACC ROIC (1) Bunge WAC
Slide 12: Increased Earnings Reflected in Discretionary Cash Flow
Increased Earnings Reflected in Discretionary Cash Flow Bunge Performance 2017 – Q2 2021 TTM 1,800 Discretionary Cash Flow (1) 1,688 40.0% 1,598 1,600 35.0% 1,400 30.0% 1,200 25.0% 1,000 25.7% 23.8% 20.0% 800 749 721 600 569 15.0% ($ millions) 13.7% 13.4% 10.0% 400 7% 200 5.0% 8.7% 0 0.0% 2017 2018
Slide 13: Full-Year 2021 Outlook
Full-Year 2021 Outlook FY2021 adjusted EPS increased to at least $8.50 per share based on the following expectations • Agribusiness: Down vs. 2020 • Increasing forecast modestly from prior outlook reflecting strong 2Q21 performance, current market trends and forward curves • Refined and Specialty Oi
Slide 14: Updating Mid-Cycle Earnings Baseline to $7 EPS, with upside
Updating Mid-Cycle Earnings Baseline to $7 EPS, with upside Reflects structural improvement in oilseed market environment and greater benefits from operating model ~$7 $5 (1) June 2020 Agri/Processing Agri/Merchandising Refined and Other Items Current Portfolio Baseline Specialty Oils Normalized (1)
Slide 15: Mid-Cycle Earnings Baseline of $7 EPS - Drivers
Mid-Cycle Earnings Baseline of $7 EPS - Drivers Agribusiness Refined and Specialty Oils Net Interest Processing • Up ~30% vs $5 baseline $165-185M • Soy crush margins updated to – Higher NA refining utilizations ~$25M lower vs $5 baseline reflecting debt paydown and normalized $34-36/MT(1) – Increas
Slide 16: Multiple Opportunities to Expand Earnings
Multiple Opportunities to Expand Earnings Strengthen Oilseeds platform/target consolidation opportunities Refined and Specialty Oils: $7 EPS differentiated products and services, geography and solutions Earnings Baseline Increase participation in renewable feedstocks and plant-based proteins Leverag
Slide 17: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Updated baseline generates an additional ~$200M of cashflow Capital Allocation Priorities Baseline Adjusted Funds From Operations (Adjusted FFO)(1) ~$1.4B BBB/Baa2 target credit ratings Shareholder dividends ~$800M Reinvestment opportunities Share buyb
Slide 18: Closing Remarks
Closing Remarks • Structural shift underway in consumer demand for sustainable food, feed and fuel • Presents compelling avenues for growth • Leveraging near-term opportunities and investing in long-term solutions and capabilities • Positioned to support meaningful change at scale given our role in
Slide 19: Q&A
Q&A
Slide 20: Agribusiness: Processing and Merchandising Definitions
Agribusiness: Processing and Merchandising Definitions Processing Merchandising • Oilseed origination • Grain origination ‒ Oilseed purchasing, cleaning, drying, ‒ Grains (corn, wheat, barley, rice) purchasing, storing and handling cleaning, drying, storing and handling • Oilseed processing • Grain
Slide 21: Core Segment Volume Highlights
Core Segment Volume Highlights Quarter Ended Six Months Ended June 30, June 30, In thousands of metric tons 2021 2020 2021 2020 Agribusiness 39,533 38,268 75,889 70,950 #2 Processing 27,230 27,282 51,244 50,628 Merchandising 12,303 10,986 24,645 20,322 Refined and Specialty Oils 2,246 2,286 4,451 4,
Slide 22: 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 23: 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 24: 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 25: 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 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Adjusted Net income (loss) Quarter Ended Six Months Ended June 30, June 30, (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $362 $516 $1,194 $332 Adjustment for Mark-to-market timing difference 36 (300)
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended Six Months Ended June 30, June 30, (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $362 $516 $1,194 $332 Interest income (6) (6) (15) (13)
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2021 Q2 YTD 2021 Q2 TTM (1) 2020 2019 2018 2017 Cash provided by (used for) operating activities ($1,436) ($3,469) ($3,535) ($808) ($1,264) ($1,975) Foreign exchange g
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters June 30, December 31, December 31, December 31,
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters June 30, Dec
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Qu
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 (US$ in milli
Slide 33: 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 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters
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