Slide 1: Q1 2020 Results Review
Q1 2020 RESULTS REVIEW May 6, 2020
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: Today's agenda
Today’s agenda CEO comments • Covid-19 operational update • Q1 highlights • Outlook • Portfolio optimization progress Financial performance Q&A 3 | Q1 2020 RESULTS REVIEW
Slide 4: Active Response to COVID-19
Active Response to COVID-19 Health & Safety as a Priority Dedicated Taskforce • Additional safety protocols added to the Company’s already robust • Global and regional taskforces involving senior leadership from all key health and safety programs areas established to: • Establish company wide policy
Slide 5: Q1 Highlights & Outlook
Q1 Highlights & Outlook Underlying business performed well Operating model allows us to adapt to changing market conditions and customers’ needs Expect FY2020 EPS to be lower than our original outlook • Agribusiness largely in line with previous expectation • COVID-19 will impact Edible Oils demand
Slide 6: Sale of US grain elevators
Sale of 35 US grain elevators Agreement to divest 35 US interior elevators to Zen-Noh Grain Corporation Bunge retains 8 strategic interior grain facilities Supports global value chain model • Retains a strong presence in the US grain marketplace • Active participation in global grain trading & distr
Slide 7: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended March 31, US$ in millions, except per share data 2020 2019 Net income (loss) attributable to Bunge $ (184) $ 45 Net income (loss) per common share-diluted $ (1.46) $ 0.26 Net income (loss) per common share-diluted, adjusted (a) $ (1.34) $ 0.36 Total Se
Slide 8: Cash flow highlights
Cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1) Adjusted Funds From Operations (excluding mark-to- market impact) (1,2) US$ in millions US$ in millions $1,056 $1,041 $1,108 $763 #2 $317 $317 $317 $317 $524 $460 $524 $460 2019 Q1 2020 TTM 2019 Q1 2020 TTM Adjusted FFO Buybacks
Slide 9: Majority of net debt finances RMI
Majority of net debt finances RMI At Q1 quarter end ~90% of Net Debt was used to finance Readily Marketable Inventories (RMI) US$ in billions Net Debt ex RMI: $1.0 $1.7 $1.8 $0.8 $0.5 Net Debt ex RMI / 18% 28% 29% 17% 10% Net Debt (%): #2 $6.1 $6.2 $5.5 $4.7 $4.8 $4.5 $4.4 $4.4 $4.3 $3.9 Q1 Q2 Q3 Q4
Slide 10: Liquidity position is comfortable
Liquidity position is comfortable Bunge has committed credit facilities of ~$4.3 billion, with nothing drawn at March 31, 2020 (US$ million) Amount Drawn Facility Maturity Size Mar 31, 2020 CP Program / Liquidity Facility Dec 2023 $600 $0 2022 Revolving Credit Facility Sep 2022 $865 $0 2022 Revolvin
Slide 11: Capital allocation process shows discipline
Capital allocation process shows discipline Committed to Investment Grade Credit Rating BBB / Baa2 target Adjusted FFO $(75) million (Distorted by ~$410 million of mtm losses) Asset Consistent Comprehensive Strategic Stewardship Returns Vetting Returns #2 EHSS (1) & Shareholder Organic & Strategic S
Slide 12: Improving return on invested capital (ROIC) trend
Improving return on invested capital (ROIC) trend 10% ROIC Target = 9% 8% WACC = 7% • Q1 2020 trailing 4Q average ROIC of 6% 6.5% 6.5% vs PY of 5.6% #2 4% • Variance vs. prior year primarily due to impact of temporary mark-to-market 2% losses on forward hedges 0% • ROIC target is 9%, 200 basis point
Slide 13: Closing Remarks and Q&A
Closing Remarks and Q&A BUNGE
Slide 14: Agribusiness | Oilseeds & Grains definitions
Agribusiness | Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination ‒ Soybean: U.S., South America, ‒ Grains (corn, wheat, barley, rice) Europe, Asia ‒ Oilseeds (soybean, rapeseed/canola, ‒ Rapeseed/Canola: Europe, Canada sunseed) #2 ‒ Sunseed: Eastern Europe, Argen
Slide 15: Segment volume highlights
Segment volume highlights Quarter Ended March 31, In thousands of metric tons 2020 2019 Agribusiness 33,300 34,429 Oilseeds 15,212 16,488 #2 Grains 18,088 17,941 Edible Oil Products 2,349 2,309 Milling Products 1,148 1,105 Sugar & Bioenergy 86 816 Fertilizer 176 196 15 | Q1 2020 RESULTS REVIEW
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures • Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT, excludes EBIT attributable to noncontrolling interest and is the aggregate o
Slide 17: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended March 31, (US$ in millions) 2020 2019 Net income (loss) attributable to Bunge #2 $ (184) $ 45 Interest income (7) (7) Interest expense 77 75 Income tax expense
Slide 18: 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): Quarter Ended March 31, (US$ in millions, except per share data) 2020 2019 Net Income (loss) attributable to Bunge $ (184) $ 45 Adjus
Slide 19: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of Net income (loss) per common share – diluted to Net income (loss) per common share – diluted, adjusted (excluding certain gains and charges): Quarter Ended March 31, 2020 2019 #2 Continuing operations: Net income (loss) per common share - di
Slide 20: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding certain gains and charges Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters March 31, December 31, December 31, December 31, December 31, (US$ in millions) 2020 2019 2018 2017 2016 To
Slide 21: Non-GAAP reconciliation
Non-GAAP reconciliation Income (loss) before income tax utilized for ROIC calculation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted: Trailing 4 Trailing 4 Trailing Trailing 4 Trailing 4 Quarters Quarters Quarters Quarter
Slide 22: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation US$ in millions Q1'20 TTM (1) 2019 Cash provided by (used for) operating activities $(845) $(814) Foreign exchange (loss) gain on net debt (16) (139) Working capital changes 1,624 #2 2,009 Adjuste
Slide 23: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation (excluding mark-to-market impact) US$ in millions Q1'20 TTM (1) 2019 Cash provided by (used for) operating activities $(845) $(814) Foreign exchange (loss) gain on net debt (16) (139) Mark-to-Mark
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