Slide 1: Q4 2021 Earnings Results Review
Q4 2021 Earnings Results Review February 9, 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: 2021 Review
2021 Review • Transformation of business over last three years is translating into value creation • Transitioned from regional to global operating model, improving visibility and agility • Portfolio actions have made global footprint stronger than ever • Improved financial discipline across organiza
Slide 5: Q4 Highlights and Outlook
Q4 Highlights and Outlook • Outstanding quarter across all areas of the business • Agribusiness results driven by strong execution throughout the value chains • Record Q4 and full-year results in Refined and Specialty Oils • Expect to deliver Adjusted EPS of at least $9.50 per share for full year 20
Slide 6: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended Year Ended December 31, December 31, (US$ in millions, except per share data) 2021 2020 2021 2020 Net income per common share-diluted $ 1.52 $ 3.74 $ 13.64 $ 7.71 Adjusted Net income per common share-diluted (a) $ 3.49 $ 3.05 $ 12.93 $ 8.30 Adjusted Co
Slide 7: Positive Earnings Trend
Positive Earnings Trend Nine consecutive quarters of increased earnings Bunge Performance 2017 – 2021 Timing Adjusted, Excluding Notables 3,000 2,530 $14.00 2,500 $12.00 $12.93 2,000 1,759 $10.00 ($ millions) $8.00 1,500 1,158 $8.30 $6.00 1,000 877 671 $4.00 500 $4.76 $2.00 $2.47 $2.70 - $0.00 2017
Slide 8: Focus on Cost Management
Focus on Cost Management 2021 Adjusted Addressable SG&A savings of $32M vs PY (68) 1,358 • YTD SG&A savings of $32M Notable items (36) ($ millions) • Organizational savings: ~35% 1,302 (32) • Indirect spend: ~65% 1,234 • $36M net cost impact from specified items including performance-based pay, FX,
Slide 9: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Received rating upgrade by Moody’s to Baa2 and Fitch to BBB YTD Capital Allocation Capital Allocation Priorities (226) 1,958 (34) (289) BBB/Baa2 target credit ratings 1,698 (173) (100) Shareholder dividends ($ millions) 1,136 Reinvestment opportuniti
Slide 10: Increasing Capex to Fund Growth Opportunities
Increasing Capex to Fund Growth Opportunities Focused on a variety of multi-year and shorter-term debottlenecking projects • Agribusiness Major Growth Priorities $650-750M(1) • Soy/softseed crush debottlecking and expansion • Refined & Specialty Oils Major Growth Priorities 55% • Rotterdam oil refin
Slide 11: RMI Continues to Exceed Net Debt
RMI Continues to Exceed Net Debt $7.4 $6.9 $7.0 $6.8 $6.8 At Q4 quarter end, $6.7 $6.5 $6.3 RMI (Readily ($ billions) Marketable $5.4 Inventories) $5.1 exceeded Net Debt by Q4 Q1 Q2 Q3 Q4 $1.7 billion 2020 2021 2021 2021 2021 Net Debt RMI 11
Slide 12: Increased Earnings Driving Higher Returns
Increased Earnings Driving Higher Returns AROIC captures benefits of earnings driven from utilization of additional working capital Bunge Limited Returns (excluding Sugar & Bioenergy) 19.9% 15.9% 9.7% 13.9% 7.9% 12.2% 6.6% 6.6% 6.5% 8.1% 5.9% 2017 2018 2019 2020 2021 AROIC AWACC ROIC (1) Bunge WACC
Slide 13: Increased Earnings Reflected in Discretionary Cash Flow
Increased Earnings Reflected in Discretionary Cash Flow Bunge Performance 2017 – 2021 2,000 Discretionary Cash Flow (1) 40.0% 38.0% 1,800 1,698 36.0% 1,598 34.0% 1,600 32.0% 30.0% 1,400 28.0% 26.0% 1,200 24.0% 25.7% 22.0% 1,000 20.0% 749 21.4% 18.0% 800 721 16.0% 569 14.0% ($ millions) 600 12.0% 13.
Slide 14: Full-Year 2022 Outlook
Full-Year 2022 Outlook FY2022 adjusted EPS of at least $9.50 per share based on the following expectations: • Agribusiness: Down vs. a record 2021 • Based on current market trends and forward curves • Upside potential resulting from strong demand and tight crop supplies • Refined and Specialty Oils:
Slide 15: Closing Remarks
Closing Remarks • Executing well and delivering value for our customers in a highly dynamic environment • Continuing work to capture the upside in core oilseed processing and origination businesses • Increasing capabilities to capture secular demand growth in three key growth areas: • Renewable feed
Slide 16: Joss
Joss
Slide 17: 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 18: Core Segment Volume Highlights
Core Segment Volume Highlights Quarter Ended Year Ended December 31, December 31, In thousands of metric tons 2021 2020 2021 2020 Agribusiness 35,638 35,785 142,013 143,054 #2 Processing 25,049 23,302 95,160 96,009 Merchandising 10,589 12,483 46,853 47,045 Refined and Specialty Oils 2,361 2,414 9,20
Slide 19: 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 20: 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 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Projected adjusted net income per common share for 2022 has also been presented. This information is provided only on a non-GAAP basis without reconciliation to projected net income per common share for 2022, the mostly directly comparable GAAP measure, due to the inability a
Slide 22: 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 23: 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 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Adjusted Net income (loss) Quarter Ended Year Ended December 31, December 31, (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $231 $551 $2,078 $1,145 Adjustment for Mark-to-market timing difference 138 (
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Net income (loss) attributable to Bunge to Total Segment EBIT and Adjusted Total Segment EBIT Quarter Ended Year Ended December 31, December 31, (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $231 $551 $2,078 $1,145 Interest income (14) (4) (48)
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2021 2020 2019 2018 2017 Cash provided by (used for) operating activities ($2,894) ($3,535) ($808) ($1,264) ($1,975) Foreign exchange (loss) gain on net debt ($78) $20
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-1
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Return on Invested Capital excluding certain gains and charges, mark-to-market timing differences, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Dec-21 31
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Qu
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Timing Adjusted EBIT, excluding notables Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 (US$ in milli
Slide 31: 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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