Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q2 2023 Earnings Presentation
30 slides from Bunge's earnings presentation, Aug 2, 2023
Slide 1: Q2 2023 Earnings Results Review
Q2 2023 Earnings Results Review August 2, 2023
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: Q2 Highlights and Outlook
Q2 Highlights and Outlook 1 • Delivered strong Q2 results in dynamic environment • Captured opportunities and optimized margins with footprint and value chain connectivity • Prior investments in maintenance and productivity delivered increased reliability and lower unplanned downtime • Continue to m
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) 2023 2022 2023 2022 Net income per common share-diluted $ 4.09 $ 1.34 $ 8.24 $ 5.81 Adjusted Net income per common share-diluted (a) $ 3.72 $ 2.97 $ 6.98 $ 7.23 Adjusted Core S
Slide 6: Strong Earnings Trend Continues in 2023
Strong Earnings Trend Continues in 2023 Bunge Performance 2019 – Q2 2023 TTM 6
Slide 7: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value 1,360 181 Capital Allocation Priorities 1,179 188 BBB+/Baa2/BBB Credit 360 Ratings2 Shareholder dividends 631 Reinvestment opportunities Share buybacks 2023 Sustaining Discretionary Dividends to Growth/Prod. Retained Adj. FFO 1 Capital Cash Flow 1 Comm
Slide 8: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $8.4 $7.2 $7.2 At Q2 quarter end, $6.4 $6.7 RMI (Readily ($ billions) $5.7 Marketable $4.1 Inventories) exceeded $3.5 $3.6 Net Debt by $2.7 $3.6 billion Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 Net Debt RMI 8
Slide 9: Committed Liquidity Position Remains Strong
Committed Liquidity Position Remains Strong Bunge has committed credit facilities of ~$5.7 billion, all of which was unused and available as of June 30, 2023 In $ millions Facility2 Maturity Size Amount Drawn1 364-day RCF Jun 2024 1,100 0 3-year European RCF Dec 2024 1,750 0 5-year US RCF Jul 2026 1
Slide 10: Strong Earnings Continue To Drive High Returns
Strong Earnings Continue To Drive High Returns AROIC captures benefits of increased earnings and reduction of net debt Bunge Returns (excluding Sugar & Bioenergy)1,2,3 21.6% 19.9% 20.3% 15.9% 15.0% 15.1% 13.9% 9.7% 12.2% 8.1% 7.7% 2019 2020 2021 2022 Q2'23 TTM AROIC ROIC AWACC 1. Bunge WACC is at 7.
Slide 11: Strength of Earnings Reflected in Discretionary Cash Flow
Strength of Earnings Reflected in Discretionary Cash Flow 2,500 Bunge Performance 2019 – Q2 2023 TTM1,2 40.0% 38.0% 2,051 2,092 36.0% 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% 20.0% 18.0% 1,000 19.2% 16.0% 755 14.0% 12.0% 12.5% 10.0% 500 8.2% 8.0% 6.0% 4.0%
Slide 12: Full-Year 2023 Outlook
Full-Year 2023 Outlook Increasing FY2023 adjusted EPS to at least $11.75 per share based on the following1: • Agribusiness: down vs. a record 2022 • Increasing slightly from prior outlook driven by Processing • Upside potential depending on how market conditions evolve • Refined and Specialty Oils:
Slide 13: Closing Remarks
Closing Remarks • Remain focused on executing top strategic priorities to better serve farmers and end customers in all market environments • Continue to promote sustainable and transparent value chains • Low carbon product streams • Acceleration of regenerative agriculture • Full end-to-end traceab
Slide 14: Appendix
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 Three Months Ended Six Months Ended June 30, June 30, In thousands of metric tons 2023 2022 2023 2022 Agribusiness (1) #2 18,257 19,490 36,643 39,560 Processing 11,992 12,100 22,369 22,873 Merchandising 6,265 7,390 14,274 16,687 Refined and Specialty Oils (2) 2,212 2,3
Slide 17: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, Adjusted Corporate and Other EBIT, Adjusted Total Segment EBIT, and Timing Adjusted EBIT, excluding Notables, are calculated by excluding certain gains and (charges), as described in "Additional Financial Information“ o
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 We also have presented projected adjusted net income per common share - diluted for 2023. This information is provided only on a non-GAAP basis without reconciliation to projected net income per common share - diluted for 2023, the mostly directly comparable GAAP measure, becaus
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 Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income Three Months Ended Six Months Ended, June 30, June 30, (US$ in millions) 2023 2022 2023 2022 Net income attributable to Bunge $622 $206 $1,254 $894 Adjustment for Mark-to-market timing difference (89) 194 (217) 132 Adjus
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Six Months Ended June 30, June 30, (US$ in millions) 2023 2022 2023 2022 Net income (loss) attributable to Bunge $622 $206 1,254 $894 Interest income (40) (11) (83
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow (US$ in millions) 2023 Q2 YTD 2023 Q2 TTM 2022 2021 2020 2019 Cash provided by (used for) operating activities $472 ($620) ($5,549) ($2,894) ($3,535) ($808) Foreign exchange (loss) ga
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-1
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-23 31
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-23 3
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 (US$ in milli
Slide 29: 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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