Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q1 2023 Earnings Presentation
30 slides from Bunge's earnings presentation, May 3, 2023
Slide 1: Q1 2023 Earnings Results Review
Q1 2023 Earnings Results Review May 3, 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: Q1 Highlights and Outlook
Q1 Highlights and Outlook • Delivered another quarter of strong results, though down from prior year • Record performance in Refined and Specialty Oils • Our team and diverse platform enable us to succeed in any operating environment while helping our customers do the same • Continuing to manage the
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended March 31, (US$ in millions, except per share data) 2023 2022 Net income per common share-diluted $ 4.15 $ 4.48 Adjusted Net income per common share-diluted (a) $ 3.26 $ 4.26 Adjusted Core Segment EBIT (a) (b) $ 756 $ 858 Agribusiness (c) $ 512 $ 627 Pr
Slide 6: Strong Earnings Trend Continues in 2023
Strong Earnings Trend Continues in 2023 Bunge Performance 2019 – Q1 2023 TTM Timing Adjusted, Excluding Notables 3,000 2,855 2,750 $16.00 2,530 $14.00 2,500 $13.91 $12.00 $12.93 $12.92 2,000 1,759 $10.00 ($ millions) 1,500 $8.00 1,158 $8.30 $6.00 1,000 $4.00 500 $4.76 $2.00 - $0.00 2019 2020 2021 20
Slide 7: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Capital Allocation Priorities 625 86 539 94 BBB/Baa2 target credit ratings 87 358 Shareholder dividends Reinvestment opportunities 2023 Sustaining Discretionary Dividends to Growth/Prod. Retained Share buybacks Adj. FFO Capital Cash Flow Common Capit
Slide 8: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $8.9 $8.4 At Q1 quarter end, $7.2 $6.7 RMI (Readily $6.4 ($ billions) $6.1 $5.7 Marketable Inventories) exceeded $4.1 $3.5 Net Debt by $2.7 $4.5 billion Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 Net Debt RMI 8
Slide 9: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$5.7 billion, of which all was unused and available as of 3/31/2023 $ millions Facility Maturity Size Amount Drawn1 364-day RCF Jul 2023 1,100 0 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 3-year European RCF Dec 2
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) 21.6% 19.9% 19.8% 15.9% 15.0% 14.4% 13.9% 9.7% 12.2% 8.1% 7.7% 2019 2020 2021 2022 Q1'23 TTM AROIC ROIC AWACC (1) Bunge WACC is at 7.0% f
Slide 11: Strength of Earnings Reflected in Discretionary Cash Flow
Strength of Earnings Reflected in Discretionary Cash Flow Bunge Performance 2019 – Q1 2023 TTM 2,500 40.0% 38.0% 36.0% 2,050 34.0% 2,000 1,943 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 18.2% 16.0% 755 14.0% 12.0% 12.5% 8.2% 10.0% 500 8.0% 6.0% 4.0% 2.0
Slide 12: Full-Year 2023 Outlook
Full-Year 2023 Outlook Continue to expect FY 2023 adjusted EPS of at least $11 per share based on the following(1): • Agribusiness: down vs. a record 2022 • Upside potential depending on how market conditions evolve • Refined and Specialty Oils: down vs. a record 2022 • Increasing forecast from prio
Slide 13: Closing Remarks
Closing Remarks • Growth focused on increasing our ability to serve customers, from farmers to end-consumers • Continuing to make investments in core business and growth areas • Expanding origination and crush • Enhancing refined and specialty oils products and solutions • Increasing participation i
Slide 14: Joss
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 Quarter Ended March 31, In thousands of metric tons 2023 2022 Agribusiness (1) #2 18,386 20,070 Processing 10,377 10,773 Merchandising 8,009 9,297 Refined and Specialty Oils (2) 2,146 2,296 Milling (3) 821 1,161 (1) In our Agribusiness segment, reported Processing volu
Slide 17: 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 18: 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 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 Quarter Ended March 31, (US$ in millions) 2023 2022 Net income attributable to Bunge $632 $688 Adjustment for Mark-to-market timing difference (128) (62) Adjusted for certain (gains) and charges: Ukraine-Russia war (8) 1
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended March 31, (US$ in millions) 2023 2022 Net income (loss) attributable to Bunge $632 $688 Interest income (43) (9) Interest expense 112 111 Income tax expense (benefit
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2023 Q1 YTD 2023 Q1 TTM 2022 2021 2020 2019 Cash provided by (used for) operating activities $931 ($1,962) ($5,549) ($2,894) ($3,535) ($808) Foreign exchange (loss) ga
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-1
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-23 31
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-23 3
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Mar-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 (US$ 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
Slide 30: Slide 30