Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q3 2023 Earnings Presentation
33 slides from Bunge's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Earnings Results Review
Q3 2023 Earnings Results Review October 26, 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: Q3 Highlights and Outlook
Q3 Highlights and Outlook (1) • Delivered strong Q3 results in dynamic environment • Remained focused on execution across global footprint • Adapted to changing market conditions to meet needs of customers • Continue to make progress on combination with Viterra • Received overwhelming shareholder ap
Slide 5: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions, except per share data) 2023 2022 2023 2022 Net income per common share-diluted $ 2.47 $ 2.49 $ 10.71 $ 8.30 Adjusted Net income per common share-diluted (a) $ 2.99 $ 3.45 $ 9.97 $ 10.66 Ad
Slide 6: Strong Earnings Trend Continues in 2023
Strong Earnings Trend Continues in 2023 Bunge Performance 2019 – Q3 2023 TTM 1. Adjusted Total Segment EBIT and Adjusted EPS are non-GAAP measures. Reconciliations to the most directly comparable U.S. GAAP measure are provided in the appendix. 6
Slide 7: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Capital Allocation Priorities 1,935 321 BBB+/Baa2/BBB Credit Ratings2 1,614 287 ($ million) 484 Shareholder dividends 466 Reinvestment opportunities 377 Share buybacks 2023 Sustaining Discretionary Dividends to Growth/Prod. Share Buybacks Retained Adj.
Slide 8: Readily Marketable Inventory (RMI) Continues to Exceed Net Debt
Readily Marketable Inventory (RMI) Continues to Exceed Net Debt At Q3 quarter end: $7.2 $7.2 $6.7 • RMI exceeded Net $6.4 $6.2 Debt by $3.2B ($ billions) $4.1 $3.5 $3.6 • Adjusted Leverage $2.7 $3.0 Ratio(1): 0.3x Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 Net Debt RMI 1. Adjusted Leverage Ratio is a n
Slide 9: 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 September 30, 2023. In $ millions Facility Maturity Size Amount Drawn1 364-day RCF Jun 2024 1,100 0 3-year European RCF Oct 20262 1,750 0 5-year US RCF Jul 2026 1,950
Slide 10: 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% 19.0% 15.9% 15.0% 14.4% 13.9% 9.7% 12.2% 8.1% 7.7% 2019 2020 2021 2022 Q3'23 TTM AROIC AWACC ROIC (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 – Q3 2023 TTM1,2 40.0% 38.0% 36.0% 2,051 2,061 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 $12.50 based on the following(1): • Agribusiness: in line with a record 2022 • Increasing slightly from prior outlook driven by Processing • Upside potential depending on how market conditions evolve • Refined and Specialty Oils: up v
Slide 13: Closing Remarks
Closing Remarks • Long-term fundamental drivers for the business remain in place • Strategic combination with Viterra will help accelerate long-term growth and better serve farmers and end-consumers • Making progress on other important growth initiatives • Targeted greenfield and bolt-on acquisition
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 Three Months Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2023 2022 2023 2022 Agribusiness (1) #2 18,854 19,622 55,497 59,182 Processing 11,270 11,382 33,639 34,256 Merchandising 7,584 8,240 21,858 24,926 Refined and Specialty Oils (2
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 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 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income attributable to Bunge to Adjusted Net income Three Months Ended Nine Months Ended, September 30, September 30, (US$ in millions) 2023 2022 2023 2022 Net income (loss) attributable to Bunge $373 $380 $1,627 $1,274 Adjustment for Mark-to-market timing difference 21 2
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Nine Months Ended September 30, September 30, (US$ in millions) 2023 2022 2023 2022 Net income (loss) attributable to Bunge $373 $380 1,627 $1,274 Interest income
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income to Adjusted EBITDA (US$ in millions) 2023 Q3 TTM Net income $2,051 Interest income (142) Interest expense 471 Income tax expense (benefit) 626 Depreciation and amortization 420 Certain (gains) and charges 145 Mark-to-market timing difference (139) Adjusted EBITDA $
Slide 26: 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 Q3 Gross Debt $5,182 Cash and Cash Equivalents (2,173) Net Debt $3,009 Adjustments: RMI $6,172 RMI Fa
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2023 Q3 YTD 2023 Q3 TTM 2022 2021 2020 2019 Cash provided by (used for) operating activities $1,860 $1,342 ($5,549) ($2,894) ($3,535) ($808) Foreign exchange (loss) ga
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-23 31
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-1
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-23 3
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Adjusted Total Segment EBIT Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-23 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 (US$ 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 30-Sep-23 31-Dec-22 31-Dec-21 31-Dec-20
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