Slide 1: Q2 2022 Earnings Results Review
Q2 2022 Earnings Results Review July 27, 2022
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 • Positive momentum across the business • Agribusiness continued to benefit from strong demand and tight commodity supplies • Results in Refined and Specialty Oils higher in all regions • Milling results higher, as team effectively managed supply chain in dynamic environmen
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) 2022 2021 2022 2021 Net income per common share-diluted $ 1.34 $ 2.37 $ 5.81 $ 7.85 Adjusted Net income per common share-diluted (a) $ 2.97 $ 2.61 $ 7.23 $ 5.72 Adjusted Core S
Slide 6: Positive Earnings Trend
Positive Earnings Trend Eleven consecutive quarters of increased earnings Bunge Performance 2018 – Q2 2022 TTM Timing Adjusted, Excluding Notables 3,000 2,773 $16.00 2,530 $14.00 2,500 $14.44 $12.00 2,000 1,759 $12.93 $10.00 ($ millions) 1,500 1,158 $8.00 877 $8.30 $6.00 1,000 $4.00 500 $4.76 $2.00
Slide 7: Continuous Focus on Costs
Continuous Focus on Costs Addressable SG&A expected to increase, reflecting investments to drive future growth 74 • Q2 YTD Addressable SG&A increase of $22M vs PY 22 • Return to more normal activities post-pandemic 52 568 642 • Related to investments to ($ millions) drive future growth • $52M net co
Slide 8: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value YTD Capital Allocation Capital Allocation Priorities (101) 1,238 (8) (154) 1,129 (111) BBB/Baa2 target credit ratings 864 Shareholder dividends ($ millions) Reinvestment opportunities Share buybacks 2022 Sustaining Preferred Discretionary Dividends t
Slide 9: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $8.9 $8.4 At Q2 quarter end, RMI (Readily ($ billions) $7.0 $6.8 $6.7 Marketable $6.5 $6.1 Inventories) exceeded $5.4 $5.7 $5.1 Net Debt by $2.7 billion Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Net Debt RMI 9
Slide 10: Liquidity Position Remains Strong
Liquidity Position Remains Strong Bunge has committed credit facilities of ~$5.8 billion, all of which was unused and available as of June 30, 2022 $ millions Facility Maturity Size Amount Drawn (1) 364-day RCF Jul 20222 1,000 0 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 3-year European R
Slide 11: Increased Earnings Driving Higher Returns
Increased Earnings Driving Higher Returns AROIC continues to capture benefits of earnings driven from utilization of additional working capital Bunge Returns (excluding Sugar & Bioenergy) 22.0% 19.9% 15.9% 14.9% 9.7% 12.2% 13.9% 7.9% 6.6% 8.1% 6.5% 2018 2019 2020 2021 Q2-22 TTM AROIC AWACC ROIC (1)
Slide 12: Increased Earnings Reflected in Rising Discretionary Cash Flow
Increased Earnings Reflected in Rising Discretionary Cash Flow Bunge Performance 2018 – 2022 2,500 40.0% 38.0% 36.0% 2,046 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% 20.8% 18.0% 1,000 16.0% 783 755 14.0% 12.0% ($ millions) 500 12.7% 12.5% 7% 10.0% 8.0% 6.0% 4
Slide 13: Full-Year 2022 Outlook
Full-Year 2022 Outlook Increasing FY2022 adjusted EPS to at least $12 per share with potential upside depending on the market environment and supply/demand balance • Agribusiness: Down vs. 2021 • Increasing forecast from prior outlook reflecting Q2 performance • Refined and Specialty Oils: Up vs. 20
Slide 14: Growth Framework to Increase EPS Baseline to ~$11 by end of 2026
Growth Framework to Increase EPS Baseline to ~$11 by end of 2026 • Updating EPS baseline to ~$8.50, reflecting structural improvement in oilseed market & more benefits from operating model • Deploying cash flow toward growth and share repurchases to increase baseline to ~$11 by the end of 2026 • Uti
Slide 15: Earnings Growth Framework Assumptions
Earnings Growth Framework Assumptions Baseline Update Milling Growth • ~$100M • ~$3.3B of growth capex and M&A Processing • No change vs $7 baseline bolt-on investments(2) • Structural soy crush margins updated to $37-39/MT(1) Corporate & Other • Capex investments oriented toward a • Structural soft
Slide 16: Increasing the Baseline Through Growth
Increasing the Baseline Through Growth Growth investments currently underway expected to add ~$2.50 of incremental EPS to current baseline by end of 2026 ~$2.50 EPS Growth Strategic ~$3.3Bn of Investments Percent Growth Areas (Capex/M&A) of spend Strengthen Oilseeds • Origination & crush footprint p
Slide 17: Delivering Strong Performance with Less Dependence on Market Environment
Delivering Strong Performance with Less Dependence on Market Environment Adjusted EPS vs Earnings Baseline $12.93 $12+ • Baseline is expected to increase $12+ throughout the period as earnings ~$11 $8.30 from investments begin to contribute, regardless of the ~$8.50 market environment ~$7 • Projecti
Slide 18: Closing Remarks
Closing Remarks • Culture of continuous improvement driving innovation and efficiency • Rigorous assessment and refinement a key part of process • Increased focus on technologies across the platform will support greater insights, elevated operational performance, deeper market engagement and further
Slide 19: Appendix
Joss
Slide 20: 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 21: Core Segment Volume Highlights
Core Segment Volume Highlights Three Months Ended Six Months Ended June 30, June 30, In thousands of metric tons 2022 2021 2022 2021 Agribusiness 19,489 21,649 39,560 43,293 #2 Processing 12,100 12,333 22,873 23,449 Merchandising 7,389 9,316 16,687 19,844 Refined and Specialty Oils 2,329 2,242 4,624
Slide 22: 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 23: 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 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation We also have presented projected adjusted net income per common share for 2022. This information is provided only on a non-GAAP basis without any reconciliation to projected net income per common share for 2022, the mostly directly comparable GAAP measure, due to the inabilit
Slide 25: 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 26: 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 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Adjusted Net income (loss) Three Months Ended Six Months Ended June 30, June 30, (US$ in millions) 2022 2021 2022 2021 Net income (loss) attributable to Bunge $206 $362 $894 $1,194 Adjustment for Mark-to-market timing difference 194
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Six Months Ended June 30, June 30, (US$ in millions) 2022 2021 2022 2021 Net income (loss) attributable to Bunge $206 $362 $894 $1,194 Interest income (11) (6) (20
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2022 Q2 YTD 2022 Q2 TTM (1) 2021 2020 2019 2018 Cash provided by (used for) operating activities ($4,457) ($5,914) ($2,894) ($3,535) ($808) ($1,264) Foreign exchange (
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-1
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-22 31
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Qu
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-21 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 (US$ in milli
Slide 34: 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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