Slide 1: A New Bunge
a Pe: aay A New Bunge June 24, 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: Industry Veterans with Track Record of Creating Value
Industry Veterans with Track Record of Creating Value Greg Heckman John Neppl Chief Executive Officer Chief Financial Officer Bunge Limited Bunge Limited 35+ years of 25+ years of industry experience industry experience Bunge Bunge Gavilon Group Green Plains Conagra Foods Gavilon Group Conagra Foods
Slide 4: Agenda
Agenda 01 02 03 CEO Risk Q&A Update Management and CFO Update 4
Slide 5: Why Bunge is Uniquely Compelling
Why Bunge is Uniquely Compelling New, world-class leadership team: experienced, focused, energized Driving value through leading global franchise w/ Oilseeds at the core Strong, consistent cash flows and disciplined capital allocation Foundation to earn $5+/share EPS at long term average crush margi
Slide 6: Essential Role in Feeding a Growing World
Essential Role in Feeding a Growing World Purpose Vision We connect farmers to consumers To be the #1 global integrated Oilseeds processor to deliver essential food, feed and fuel to the world and the preferred sustainable solutions partner for oilseeds, related commodities and ingredients 6
Slide 7: New, World-Class Leadership Team
New, World-Class Leadership Team Changes made in 2019 augment institutional knowledge with deep industry expertise Greg Heckman Chief Executive Officer • Gavilon Group, ConAgra Foods John Neppl Raul Padilla Brian Zachman Christos Aaron Buettner Chief Financial Officer President Global President Glob
Slide 8: Durable Cash Flow
Durable Cash Flow Bunge Adjusted EBITDA(3) ($B) 1.7 1.6 1.6 1.6 1.6 1.5 1.6 1.5 1.5 1.3 1.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TTM Q1 2020 (1) All periods exclude Sugar & Bioenergy and include adjustments for one time items (2) Q1 2020 presented as Trailing 12 Months and includes adju
Slide 9: Differentiated Risk Management
Differentiated Risk Management Navigating challenging and complex trade environment to capture opportunities as presented, while reducing downside exposures Strong Link Core Global Strengthening to Physical Organizational Management, Controls Assets Competency Local Expertise 9
Slide 10: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Maintain dividend policy & sustaining capex through the cycle Top Bottom • Build strong balance • Step up focus on • Acquire select strategic sheet identifying acquisition assets below • Where strategically targets replacement costs sensible, monetize • Repurc
Slide 11: Building a Focused and Profitable Portfolio
Building a Focused and Profitable Portfolio Actions to date • Completed sugar & bioenergy JV with BP $1.1B • Announced sale of Brazilian margarine Expected proceeds from transactions and mayonnaise assets • Sold stake in U.S. ethanol producer • Divested idled grain facilities in Eastern $1.5B Europe
Slide 12: Monetizing Non-Core Assets
Monetizing Non-Core Assets High thresholds for target returns and strategic benefit to Oilseeds U.S. Grain Brazil Margarine & Elevators Mayonnaise Assets • Agreement to divest 35 U.S. interior elevators • Agreement to divest Brazilian margarine and to Zen-Noh Grain Corp. mayonnaise businesses to JBS
Slide 13: New, Agile Operating Model
New, Agile Operating Model Old: Regional Model New: Value Chain Model P&L P&L P&L P&L Farmer Customer Destination Farmer Customer Crush P&L P&L INEFFICIENT, REGIONAL MODEL: STREAMLINED, GLOBAL VALUE CHAIN MODEL: Global reach and scale hindered by internal transaction Focused on market facing activit
Slide 14: Earnings Baseline of $5 EPS Post COVID-19, with Upside
Earnings Baseline of $5 EPS Post COVID-19, with Upside New global operating model expected to drive higher through-the-cycle results, while providing greater flexibility to capture upside opportunities from market dislocations ~$5 $3.71 (1) Self-help actions: ~$1/share 2019 Normalized 6-Year Average
Slide 15: Multiple Opportunities to Expand Earnings Power
Multiple Opportunities to Expand Earnings Power Strengthen Oilseeds platform/ target consolidation opportunities (e.g., Imcopa) Execute Bunge Loders Croklaan (BLC) opportunity: differentiated $5 EPS + products and services, geography and solutions Earnings Baseline Increase participation in biofuels
Slide 16: Focused Strategy with Oilseeds at the Core
Focused Strategy with Oilseeds at the Core Purpose Vision To be the #1 global integrated Oilseeds processor We connect farmers to consumers and the preferred sustainable solutions partner for to deliver essential food, feed and fuel to the world oilseeds, related commodities and ingredients Areas of
Slide 17: Capturing the Oilseeds Opportunity
Capturing the Oilseeds Opportunity Favorable Unmatched assets macro trends and capabilities Global footprint Deep farmer and customer relationships 17
Slide 18: Oilseeds Poised for Continued Strong Growth
Oilseeds Poised for Continued Strong Growth Global Soymeal Global Veg-oil Demand Demand (MMT) (MMT) • Long term underlying soymeal and vegetable oil 250 326 demand growth supported 287 by population and per 200 capita income growth 240 212 150 • Carbon focus and biofuel policy expected to 170 accele
Slide 19: Consumer Eating Habits Driving Oilseeds Growth
Consumer Eating Habits Driving Oilseeds Growth Vegetable oils: the end of “Fat is Bad” One of the three macronutrients • Protein, carbohydrates, fats • 20-35% of daily recommended energy intake • Essential to our diet and life Nutritional relevance • Sustaining energy source • Vital for good cell/me
Slide 20: Consumer Eating Habits Driving Oilseeds Growth (Continued)
Consumer Eating Habits Driving Oilseeds Growth (Continued) Accelerating demand for plant-based proteins • Critical components of meat alternatives 2030 Retail Market Size Projections (typically >90% dry contents): for Meat Alternatives ($B) 140 − Plant proteins (soy, pea and other pulse and oilseed
Slide 21: Environmental Concerns Driving Oilseeds Growth
Environmental Concerns Driving Oilseeds Growth California Renewable Standard Scores scaled vs. ultra low sulfur diesel emissions = 100) 120 Biodiesel and Renewable Diesels Other Fuels 100 various feedstocks (gC02e/MJ) Carbon Intensity (CI) score for 100 80 73 60 55 40 21 20 0 Used Cooking Soy Renewa
Slide 22: Bunge's Unmatched Global Oilseeds Footprint
Bunge’s Unmatched Global Oilseeds Footprint Global (#1) Soy 129/Soft 31 Asia Soy 22/Soft 3 North America (#2) Soy 35/Soft 7 Soy crush Europe (#1) Soy 21/Soft 21 Soft crush South America (#1) Multi crush Soy 51/Soft 1 Crush capacity Palm refinery Capacities KMT/day Global Leader 32 100+ 51 30 28 port
Slide 23: Capturing Value Throughout the Chain
Capturing Value Throughout the Chain Meal sold to hog Unload directly farmer domestically; at Cartagena, Spain; picked up at plant crush and process Oil sold CIF for consumer packaging in Algeria Transload at Miritituba Ship to and elevate onto Cartagena, Spain Panamax vessel at Barcarena port Buy f
Slide 24: Strengthening Oilseeds
Strengthening Oilseeds Focused on capital efficient consolidation 1 2 Imcopa • One of the largest regional, integrated soy processing/refining/packaging players in Brazil (2 plants with total 1 2 crush capacity of ~1.75MMT) Cambé’s plant Araucária’s plant Processes GM soybean to Dedicated to supply
Slide 25: Growth Potential in Connected Businesses
Growth Potential in Connected Businesses Global Ag Export by Global Ag Imports by • Bunge’s footprint aligns Region (MMT) Region (MMT) with key regions driving grains and oilseeds 800 800 700 700 export and import 600 600 growth 500 500 • Bunge well positioned to 400 400 capture upside from 300 300
Slide 26: Uniquely Positioned to Win in Ingredients Growth
Uniquely Positioned to Win in Ingredients Growth Differentiation Specialty players • Competitive advantage from Bunge’s scale combined with BLC’s increasingly differentiated and high valued-added products and services Niche • Top specialty niche players only ~5% Scale of the global market Commodity/
Slide 27: BLC is an Innovation Engine
BLC is an Innovation Engine Bunge B2B Edible Oils, Adjusted EBITDA • Broad and scaled product set − Sun, canola, soy, palm & shea • Leading technical and formulation capabilities − Solutions partner across food categories − 300+ patents • Global reach − Presence across continents • Sustainable & tra
Slide 28: Technology Transforming How We Operate
Technology Transforming How We Operate Logistics - Vector Block Chain - Covantis • Logistics app to create a cargo marketplace for truck drivers to be • Digital platform to modernize and simplify global post-trade operations connected with jobs & routes across Brazil • Cross-industry partnership and
Slide 29: Sustainability at the Core
Sustainability at the Core Action on Climate Responsible Supply Chains Accountability Ten-year plan to reduce our water, waste, Commitment to end deforestation in our Sector leadership on ESG disclosure and emissions and energy use by 2026 supply chains by 2025 transparency, including dashboards and
Slide 30: Risk Management Update
Risk Management Update Brian Zachman
Slide 31: Risk is Inherent in Our Business
Risk is Inherent in Our Business Enables Bunge to maximize our asset base, trade flows and market opportunities Price volatility of inputs and outputs Margin volatility and unpredictable market outcomes Risk as an opportunity and competitive advantage 31
Slide 32: Risk Management Linked to Physical Assets and Flows
Risk Management Linked to Physical Assets and Flows Earnings at Risk (E@R) is the largest risk Bunge faces Managing margins and optimizing assets Timing mis-matches between farmer and customer transactions Advantaged scale and geographic diversity in asset footprint 32
Slide 33: A Culture of Risk Management
A Culture of Risk Management Hedging economic exposure Exceptions to hedged positions measured as V@R Risks appropriate to market environment and earnings power Risk management at Bunge is a collaborative team approach 33
Slide 34: CFO Update
VY ww o x?) o. =_ \e) LL. U John Neppl BUNGE
Slide 35: Durable Cash Flow with Upside
Durable Cash Flow with Upside Generating Exercising financial Returning capital Increasing cash flow discipline to shareholders transparency 35
Slide 36: Earnings Baseline of $5 EPS Post COVID-19, with Upside
Earnings Baseline of $5 EPS Post COVID-19, with Upside New global operating model expected to drive higher through-the-cycle results, while providing greater flexibility to capture upside opportunities from market dislocations ~$5 $3.71 (1) Self-help actions: ~$1/share 2019 Normalized 6-Year Average
Slide 37: Earnings Baseline of $5 EPS - Drivers
Earnings Baseline of $5 EPS - Drivers Agribusiness Food & Ingredients Productivity & Cost • Soy crush margins based on past • Demand back to pre-COVID-19 Efficiencies 6-year average of $33-35/MT levels $50-60M by end of BG Soy Crush Margins • Edible Oil and Milling EBIT 2021 vs 2019 Histogram compar
Slide 38: Positioned to Reach Long-Term Avg. Soy Crush Margins
Positioned to Reach Long-Term Avg. Soy Crush Margins Bunge’s Global Average Soy Crush Margin ($/MT) 43 41 • Soy crush margins have averaged $34/MT 34 Average: 34 • 2019 impacted by ASF and US-China trade 33 war 29 27 • Looking past current impacts of COVID-19, improved margins to be driven by: − Pos
Slide 39: Continued Focus on Cost Management
Continued Focus on Cost Management Cost restructuring (portfolio actions/new model) $50-60M Category expense management by end of 2021 (vs 2019) Headquarter move to St. Louis $20-25M per year thereafter Bunge Shared Services 39
Slide 40: Driving Efficient and Safe Operations
Driving Efficient and Safe Operations Bunge Production System: delivering superior performance in a safe and sustainable way through manufacturing excellence Annual Productivity Improvement Opportunities Underway 5% • Closing performance gaps between plants • Increasing capacity utilization; reducin
Slide 41: Generating Cash Flow to Drive Shareholder Value
Generating Cash Flow to Drive Shareholder Value Baseline Adjusted Funds From Operations (Adjusted FFO)(1,2) ~$1.2B Strong credit metrics ~$600M Shareholder dividend Reinvestment opportunities Adj. FFO Sustaining Preferred Dividend to Cashflow Baseline Capital Dividend Common Availability Share buyba
Slide 42: Rigorous Capex Evaluation Process
Rigorous Capex Evaluation Process Target Annual Capex Spend ($M) ~450 • After Sustaining projects, investments in Growth/Productivity Productivity are prioritized ~40% • Growth projects evaluated on strategic rationale and investment return vs. hurdle rate − Assumptions stress tested under a variety
Slide 43: Committed to Returning Capital to Shareholders
Committed to Returning Capital to Shareholders Dividends Share Repurchases ($M) 500 • Committed to a prudent, 100 Available • Purchases to be opportunistic stable dividend with considerations to • Paid $2.00/share in 2019 − Credit rating outlook • In May, Board approved − Business conditions maintai
Slide 44: Maintaining 9% ROIC Target while Truing-up WACC
Maintaining 9% ROIC Target while Truing-up WACC • Adjusting Company-reported WACC to 6% (from 7%) better aligns with market realities • Risk free rates and Bunge’s beta have remained low on a sustained basis for several years • Implied cost of equity is 7% • Bunge’s ROIC target of 9% remains unchang
Slide 45: Using RMI to Capture Margin
Using RMI to Capture Margin • We manage timing mismatches between farmer selling and customer purchases − We have one chance to purchase crops when a farmer wants to sell − “Just in Time” inventory is not the model for our industry • Purchasing at harvest and carrying readily marketable inventories
Slide 46: Working Capital Balances Out Through the Cycle
Working Capital Balances Out Through the Cycle (1) (2) Cash Flow from (for) Working Capital 2 ($B) 1.2 1.2 1.0 0.7 0.9 1 0.6 0.5 0.4 0.1 1.2 1.1 0.3 (0.2) 0 (0.3) (0.6) (0.6) (0.7) (1) (1.6) (2) 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cash flow (for) from working capital Cumulative cash flow (f
Slide 47: Increasing Transparency: Adjusted ROIC
Increasing Transparency: Adjusted ROIC Adjusted ROIC (AROIC) provides investors another tool to asses Bunge’s performance ROIC Shortfalls Complementary Metric: AROIC • Does not differentiate investment • Recognizes RMI as a tool for generating in RMI from plant assets additional profit • RMI expands
Slide 48: AROIC Provides a More Accurate View of Performance
AROIC Provides a More Accurate View of Performance Adjusting for impacts of FX on book equity value to better measure performance Bunge Limited (ex Sugar) 11.5% ROIC 10.4% AROIC 9.7% 9.5% 7.9% 9.1% 8.3% 8.2% 8.2% 6.5% 6.6% 8.1% 8.0% 5.9% 6.0% 6.6% 2015 2016 2017 2018 2019 Q1-20 2015 2016 2017 2018 2
Slide 49: Increasing Transparency: Cash Flow Yield
Increasing Transparency: Cash Flow Yield Cash flow yield emphasizes cash generation and complements earnings and returns metrics Discretionary Cash Flow as a ratio of Book Equity Adjusted for CTA (1) (3) Adjusted (1) (3) Sustainable Hybrid Discretionary (3) Book Equity CTA Book Equity FFO Capex Divi
Slide 50: Cash Flow Yield Demonstrates Bunge's Durability
Cash Flow Yield Demonstrates Bunge’s Durability Bunge Performance 2015 Onwards (1) Discretionary Cash Flow ($M) 1,000 973 981 20.0% 900 18.0% 749 779 800 17.2% 721 16.0% 700 14.0% 15.3% 569 14.3% 600 13.7% 13.4% 12.0% 500 8.7% 10.0% 400 7.0% 8.0% 300 6.0% 200 4.0% 100 2.0% 0 0.0% 2015 2016 2017 2018
Slide 51: In Summary: Baseline Earnings
In Summary: Baseline Earnings ~8.5% ROIC (1) ~$5 ~10.5% AROIC (1) ~$1.2B EPS Adjusted FFO ~15.0% CFY (1) For future periods, we are unable to provide a reconciliation of forward-looking non-GAAP measures to the most comparable GAAP financial measures because the information needed to reconcile these
Slide 52: CEO Wrap Up
CEO Wrap Up Greg Heckman BUNGE
Slide 53: Bunge is Uniquely Compelling
Bunge is Uniquely Compelling New, world-class leadership team: experienced, focused, energized Driving value through leading global franchise w/ Oilseeds at the core Strong, consistent cash flows and disciplined capital allocation Foundation to earn $5+/share EPS at long term average crush margins M
Slide 54: Q&A
Q&A Greg Heckman, John Neppl, Brian Zachman
Slide 55: Non-GAAP reconciliations
Non-GAAP reconciliations This presentation contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the following slides. These measur
Slide 56: Non-GAAP reconciliations, continued
Non-GAAP reconciliations, continued Cash Flows To facilitate a comparison of Bunge’s historical cash flow generation and related trends, Bunge uses the following non-GAAP financial measures: • Adjusted Funds from Operations (Adjusted FFO) • Discretionary Cash Flow • Cash Flow Yield Adjusted FFO is c
Slide 57: Non-GAAP reconciliations, continued
Non-GAAP reconciliations, continued Returns on Capital To facilitate a comparison of Bunge’s historical returns on capital and related trends, Bunge uses the following non-GAAP financial measures: • Return on Invested Capital (ROIC) • Adjusted Return on Invested Capital (AROIC) Bunge calculates ROIC
Slide 58: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Adjusted EBITDA: (US$ in millions) Year Ended December 31, 2020 Q1 TTM (1) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Net income (loss) attributable to Bunge $(1,509) $(1,280) $267 $160 $745 $791 $
Slide 59: 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 for certain gains and charges and mark-to-market timing differences Year Ended December 31, 2019 Continuing operations: Net income (loss)
Slide 60: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO and Discretionary Cash Flow US$ in millions 2020 Q1 TTM (1) 2019 2018 2017 2016 2015 Cash provided by (used for) operating activities ($845) ($808) ($1,264) ($1,975) $1,904 $610 Foreign exchange (loss) gain on n
Slide 61: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Cash flow from (for) working capital US$ in millions 2019 2018 2017 2016 2015 2014 2013 2012 2011 Cash provided by (used for) operating $(808) $(1,264) $ (1,975) $1,904 $610 $1,399 $2,225 $(457) $2,614 activities Net (income
Slide 62: RMI Adjusted Metric
RMI Adjusted Metric • Given the nature of Bunge’s agribusiness operations, return metrics should take into consideration cash “in commodities form” available for liquidation (RMI) − The RMI adjustment is defined as the total USD amount of RMI attributable to merchandising, excluding minimum required
Slide 63: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding certain gains and charges, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters Quarters March 31, December 31, December 31, December 31, Decembe
Slide 64: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding certain gains and charges, RMI attributable to merchandising, and Sugar & Bioenergy Segment Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Quarters Quarters Quarters Quarters March 31, December 31
Slide 65: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Income (loss) from continuing operations before income tax to Return before income tax, adjusted, as utilized to calculate ROIC and AROIC in the preceding slides: Trailing 4 Trailing 4 Trailing Trailing 4 Trailing 4 Trailing 4 Quarters Quarters Qu
Slide 66: Book Equity
Non-GAAP reconciliation Book Equity Below is a reconciliation of Total equity to Common Equity: March 31, December 31, December 31, December 31, December 31, December 31, (US$ in millions) 2020 2019 2018 2017 2016 2015 Total equity $4,971 $6,031 $6,377 $7,357 $7,343 $6,652 Convertible preference (69
Slide 67: Thank you
Thank you