Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q3 2021 Earnings Presentation
31 slides from Bunge's earnings presentation, Oct 27, 2021
Slide 1: Q3 2021 Earnings Results Review
Q3 2021 Earnings Results Review October 27, 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 • Closing Remarks • Q&A 3
Slide 4: Q3 Highlights and Outlook
Q3 Highlights and Outlook • Exceptional quarter across the business • Agribusiness results driven by strong execution and improved market environment • Refined and Specialty Oils results up in all regions with particular strength in North America from foodservice and renewable diesel demand • Non-co
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 2021 2020 2021 2020 Net income per common share-diluted $ 4.28 $ 1.84 $ 12.12 $ 3.98 Adjusted Net income per common share-diluted (a) $ 3.72 $ 2.47 $ 9.43 $ 5.26 Adjus
Slide 6: Positive Earnings Trend
Positive Earnings Trend Eight consecutive quarters of increased earnings Bunge Performance 2017 – Q3 2021 TTM Timing Adjusted, Excluding Notables (1) Timing Adjusted EPS, excluding Notables for the Trailing Twelve Months (TTM) is a non U.S. GAAP measure calculated by taking the sum of Adjusted Net i
Slide 7: Focus on Cost Management
Focus on Cost Management Q3 YTD Adjusted Addressable SG&A savings of $25M vs PY 41 993 • Q3 YTD SG&A savings of $25M Notable items 16 25 • Organizational savings: ~25% • Indirect spend: ~75% ($ millions) 937 896 • $16M net cost impact from specified items including performance-based pay, FX, inflati
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 $1,891 TTM Q3’21 Retained cash of $1.1 billion $100 $100 used to reduce debt $316 $319 $365 $374 2020 Q3 2021 TTM Adjusted FFO Buybacks Divi
Slide 9: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Received rating upgrade by Moody’s to Baa2 and Fitch to BBB YTD Capital Allocation Capital Allocation Priorities 1,304 (137) (25) 1,142 BBB/Baa2 target credit ratings (215) (102) Shareholder dividends ($ millions) (100) 725 Reinvestment opportunities S
Slide 10: RMI Now Exceeding Net Debt
RMI Now Exceeding Net Debt $7.4 $6.9 $7.0 $6.8 At Q3 quarter end, $6.7 $6.5 $6.3 RMI (Readily $6.2 ($ billions) Marketable $5.5 $5.4 Inventories) exceeded Net Debt by Q3 Q4 Q1 Q2 Q3 $1.1 billion 2020 2020 2021 2021 2021 Net Debt RMI 10
Slide 11: Strong Earnings Momentum Drives Higher Returns
Strong Earnings Momentum Drives Higher Returns AROIC captures benefits of earnings driven from utilization of additional working capital Bunge Limited (excluding Sugar & Bioenergy) 19.4% 15.9% 7.9% 9.7% 13.7% 12.2% 6.6% 6.6% 6.5% 8.1% 5.9% 2017 2018 2019 2020 Q3-21 TTM AROIC AWACC ROIC (1) Bunge WAC
Slide 12: Increased Earnings Reflected in Discretionary Cash Flow
Increased Earnings Reflected in Discretionary Cash Flow Bunge Performance 2017 – Q3 2021 TTM 1,800 Discretionary Cash Flow (1) 40.0% 1,598 1,626 1,600 35.0% 1,400 30.0% 1,200 25.0% 1,000 25.7% 21.6% 20.0% 800 749 721 600 569 15.0% ($ 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 $11.50 per share based on the following expectations: • Agribusiness: Up vs. 2020 • Increasing forecast from prior outlook reflecting strong Q3 performance and favorable market trends • Refined and Specialty Oils: Up vs. 2020 • Increas
Slide 14: Closing Remarks
Closing Remarks • Expect a strong close to 2021 • Results should be well above baseline for the next couple of years • Refined and Specialty Oils and softseed crushing expected to continue to outperform baseline assumptions • Confident in ability to capture upside and minimize downside risks • Will
Slide 15: Q&A
Joss
Slide 16: 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 17: Core Segment Volume Highlights
Core Segment Volume Highlights Quarter Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2021 2020 2021 2020 Agribusiness 30,486 36,319 106,375 107,269 #2 Processing 18,867 22,079 70,111 72,707 Merchandising 11,619 14,240 36,264 34,562 Refined and Specialty Oils 2,390 2
Slide 18: 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 19: 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 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Projected adjusted net income per common share for 2021 has also been presented. This information is provided only on a non-GAAP basis without reconciliation to projected net income per common share for 2021, the mostly directly comparable GAAP measure, due to the inability a
Slide 21: 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 22: 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 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Adjusted Net income (loss) Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $653 $262 $1,847 $594 Adjustment for Mark-to-market timing differenc
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $653 $262 $1,847 $594 Interest income (19) (
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2021 Q3 YTD 2021 Q3 TTM (1) 2020 2019 2018 2017 Cash provided by (used for) operating activities ($1,642) ($3,049) ($3,535) ($808) ($1,264) ($1,975) Foreign exchange (
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-1
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-21 31
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Qu
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Sep-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 (US$ in milli
Slide 30: 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 31: Slide 31