Bunge Limited · NYSE:BG
Bunge — Bunge Global — Q2 2024 Earnings Presentation
32 slides from Bunge's earnings presentation, Jul 31, 2024
Slide 1: Q2 2024 Earnings Results Review
Q2 2024 Earnings Results Review July 31, 2024
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 (1) • Delivered solid Q2 results • Effectively delivered on commercial and operational priorities across our global footprint • Adapted to changing market conditions to meet needs of customers • Continue to make excellent progress on planning for the combination with Viterr
Slide 5: Bunge Global SA Earnings Highlights
Bunge Global SA Earnings Highlights Quarter Ended Six Months Ended June 30, June 30, (US$ in millions, except per share data) 2024 2023 2024 2023 Net income per share-diluted (a) $ 0.48 $ 4.09 $ 2.17 $ 8.24 Adjusted Net income per share-diluted (a) (b) $ 1.73 $ 3.72 $ 4.77 $ 6.98 Adjusted Core Segme
Slide 6: Earnings Trend
Earnings Trend Strong performance over the period reflects a combination of a favorable market environment and excellent execution Bunge Performance 2020 – Q2 2024 TTM Timing Adjusted, Excluding Notables 3500 20 3,031 18 3000 2,855 2,530 2,594 16 2500 14 ($ millions) $13.91 $13.66 12 2000 1,759 $12.
Slide 7: Using Cash Flow to Drive Shareholder Value
Using Cash Flow to Drive Shareholder Value 191 Capital Allocation Priorities 191 BBB+/Baa2/BBB Credit Ratings (2) ($ million) Shareholder dividends 342 Reinvestment opportunities Share buybacks 400 (229) 2024 Sustaining Discretionary Dividends to Growth/Prod. Share Retained Adj. FFO (1) Capex Cash F
Slide 8: Readily Marketable Inventory (RMI) Continues to Exceed Net Debt
Readily Marketable Inventory (RMI) Continues to Exceed Net Debt $7.2 $6.8 At Q2 quarter end: $6.2 $5.8 $6.2 • RMI exceeded Net ($ billions) Debt by $2.9B $3.6 $3.9 $3.0 $2.3 $2.2 • Adjusted Leverage Ratio(1): 0.5x Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024 Net Debt RMI (1) Adjusted Leverage Ratio is a
Slide 9: Liquidity Position Remains Strong
Liquidity Position Remains Strong In $ millions Facility Maturity Commitments Amount Drawn 364-day RCF Apr 2025 1,100 0 3-year European RCF Oct 2026 3,500 0 5-year US RCF Mar 2029 3,200 0 5-year CoBank & Farm Credit System RCF Oct 2026 865 0 Total (1) 8,665 0 • No amounts outstanding under $2 billio
Slide 10: Returns Trend
Returns Trend The spread between ROIC and AROIC reflects how we use RMI to generate incremental profit. Bunge Returns (excluding Sugar & Bioenergy)(1, 2, 3) 21.6% 19.9% 18.4% 15.9% 15.2% 15.0% 13.9% 14.3% 12.2% 12.2% 7.7% 2020 2021 2022 2023 Q2-24 TTM AROIC AWACC ROIC (1) Bunge WACC is at 7.0% for 2
Slide 11: Discretionary Cash Flow Trend
Discretionary Cash Flow Trend Reflects cash available for growth/productivity investments as well as returns to shareholders Bunge Performance 2020 – Q2 2024 TTM (1,2) 0.45 2,051 0.4 1,978 2000 1,732 0.35 1,632 1,503 0.3 1500 23.6% 0.25 20.1% 20.0% 18.2% 0.2 1000 13.7% 0.15 500 0.1 8.2% 0.05 0 0 202
Slide 12: Full-Year 2024 Outlook
Full-Year 2024 Outlook Taking into account 1H 2024 results and the current margin environment and forward curves, we have updated our FY 2024 adjusted EPS forecast to approximately $9.25(1,2) • Agribusiness: down vs. 2023 • In line with prior outlook reflecting higher Processing, largely offset by l
Slide 13: Closing Remarks
Closing Remarks • Fundamental drivers of business remain strong • Strategic combination with Viterra will help accelerate diversification, enabling us to better serve farmers and end-consumers, regardless of market conditions • Progressed strategic initiatives, including sale of interest in BP Bunge
Slide 14: Appendix
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 Six Months Ended June 30, June 30, In thousands of metric tons 2024 2023 2024 2023 Agribusiness (1) 20,579 18,257 40,771 36,643 #2 Processing 12,197 11,992 22,599 22,369 Merchandising 8,382 6,265 18,172 14,274 Refined and Specialty Oils (2) 2,300 2,2
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 share - diluted for 2024. This information is provided only on a non-GAAP basis without reconciliation to projected net income per share - diluted for 2024, the mostly directly comparable U.S. GAAP measure, because the inf
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 Six Months Ended June 30, June 30, (US$ in millions, except for share data) 2024 2023 2024 2023 Net income (loss) attributable to Bunge $70 $622 $314 $1,254 Adjustment for Mark-to-market timing differe
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Three Months Ended Six Months Ended June 30, June 30, (US$ in millions) 2024 2023 2024 2023 Net income (loss) attributable to Bunge $70 $622 $314 $1,254 Interest income (37) (40) (79
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income to Adjusted EBITDA (US$ in millions) 2024 Q2 TTM Net income $1,374 Interest income (144) Interest expense 506 Income tax expense (benefit) 480 Depreciation and amortization 469 Certain (gains) and charges (1) 266 Mark-to-market timing difference 159 Adjusted EBITDA
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Leverage Ratio adjusted for certain gains and charges, MTM timing differences, RMI Credit (1), and funding from Trade Receivables Securitization Program (US$ in millions) 2024 Q2 TTM Gross Debt $5,040 Cash and Cash Equivalents (1,161) Net Debt $3,879 Adjustments: RMI $6,776 R
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2024 Q2 YTD 2024 Q2 TTM 2023 2022 (1) 2021 2020 Cash provided by (used for) operating activities ($480) $2,356 $3,308 ($5,549) ($2,894) ($3,535) Foreign exchange (loss
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-24 31
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-24 31-Dec-23 31-Dec-22 31-Dec-21 31-Dec-2
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Adjusted Total Segment EBIT Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 30-Jun-24 31-Dec-23 31-Dec-22 31-Dec-21 31-Dec-20 (US$ in millions) Net Inco
Slide 31: 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-Jun-24 31-Dec-23 31-Dec-22 31-Dec-21
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