Bunge Limited · NYSE:BG
Bunge — Q1 2019 Earnings Presentation
21 slides from Bunge's earnings presentation, May 8, 2019
Slide 1: First Quarter 2019 Earnings Conference Call
First Quarter 2019 Earnings Conference Call May 8, 2019 1 third Quarter 2017 earnings conference call
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#2 are subject to various risks and uncertainties. Bunge has provid
Slide 3: CEO's comments
CEO’s comments • Initial insights • Organizational changes • Priorities ◦ Drive operational performance #2 ◦ Optimize portfolio ◦ Strengthen financial discipline • 2019 Outlook 3 FIRST QUARTER 2019 EARNINGS CONFERENCE CALL
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights $ in millions, except EPS data Quarter Ended March 31, US$ in millions, except per share data 2019 2018 Net income (loss) attributable to Bunge $ 45 $ (21) Net income (loss) per common share from continuing operations-diluted $ 0.26 $ (0.20) Net income (loss) per co
Slide 5: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1) US$ in billions $1.5 $1.4 #2 $1.2 $1.1 $0.9 (2) 2015 2016 2017 2018 Q1' 19 TTM (1) Adjusted Funds From Operations is a non US GAAP measure. Reconciliation to the most directly comparable U.S. GAAP measure is provide
Slide 6: Bunge Limited balance sheet highlights
Bunge Limited balance sheet highlights • Strong, flexible balance sheet • At Q1 quarter-end, ~80% of Net Debt was used to finance Readily Marketable Inventories (RMI) US$ in billions $5.5 #2 $5.0 $4.5 $4.5 Net Debt RMI Net Debt RMI As of As of December 31, 2018 March 31, 2019 6 FIRST QUARTER 2019 EA
Slide 7: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • Committed credit facilities of ~$5 billion, of which $4.3 billion was unused and available at March 31, 2019 #2 Reinvest in the Asset portfolio Return capital business (Capex) management to shareholders • Productivi
Slide 8: Return on invested capital (ROIC)
Return on invested capital (ROIC) Trailing 4Q Average* Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment #2 WACC = 7% 5.0% 6.5% Ø 5.6% 7.2% As of As of December 31, 2018 March 31, 2019 * Reconciliation to the most directly comparable U.S
Slide 9: 2019 Full-year outlook
2019 Full-year outlook The Company's view on 2019 full-year consolidated results has not changed from its previous outlook and continues to expect that results will be similar to 2018. Agribusiness • Based on the following factors, results would be expected to be lower than 2018: – Lower soy crush m
Slide 10: 2019 Full-year outlook
2019 Full-year outlook Sugar & Bioenergy • Based on the following factors, results would be expected to be approximately breakeven, up significantly vs 2018 – Normal weather in Brazil and current forward sugar and ethanol price curves – Results to be seasonally weighted to the second half of the yea
Slide 11: Q&A
Q&A 11 third Quarter 2017 earnings conference call
Slide 12: 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, Argentin
Slide 13: Segment volume highlights
Segment volume highlights Three Months Ended March 31, In thousands of metric tons 2019 2018 Agribusiness 34,429 35,805 Oilseeds #2 16,488 15,112 Grains 17,941 20,693 Edible Oil Products 2,309 2,008 Milling Products 1,105 1,135 Sugar & Bioenergy 816 1,447 Fertilizer 196 172 13 FIRST QUARTER 2019 EAR
Slide 14: 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 15: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended March 31, (US$ in millions) 2019 2018 Net income (loss) attributable to Bunge #2 $ 45 $ (21) Interest income (7) (8) Interest expense 75 70 Income tax expense (
Slide 16: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes 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 March 31, (US$ in millions, except per share data) 2019 2018 Net Income (loss) attributable
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average March 31, December 31, (US$ in millions) 2019 2018 Total Segment EBIT $ 827 $ 737 EBIT attributable to noncontrolling interest 29 27 Interest income 30 3
Slide 18: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding Sugar and Bioenergy segment EBIT and certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average March 31, December 31, (US$ in millions) 2019 2018 Total Segment EBIT $ 827 $ 737 EBIT attributable to noncontrollin
Slide 19: Non-GAAP reconciliation
Non-GAAP reconciliation 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 #2 Quarter Average Quarter Average (US$ in millions) March 31, 2019 December 31
Slide 20: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation US$ in millions 2015 2016 2017 2018 Q1'19 TTM (1) Cash provided by (used for) operating activities 610 446 (1,975) (1,264) 107 Foreign exchange (loss) gain on net debt 213 (80) (21) (139) (143) Wo
Slide 21: third Quarter 2017 earnings conference call
21 third Quarter 2017 earnings conference call