Bunge Global SA

Good day and welcome to the Bundy Limited second quarter 2020 earnings release and conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Ruth Ann Weisner. Please go ahead.

Thank you, operator, and thank you for joining us this morning. Before we get started, I want to let you know that we have slides to accompany our discussion. These can be found in the investor section of our website at bungie.com under events and presentations. Reconciliations of non-GAAP measures to the most directly comparable GAAP financial measure are posted on our website as well. I'd like to direct you to slide two and remind you that today's presentation includes forward-looking statements that reflect Bungie's current view with respect to future events, financial performance, and industry conditions. These forward-looking statements are subject to various risks and uncertainties. Bungie has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation, and we encourage you to review these factors. On the call this morning are Chief Executive Officer Greg Heckman and Chief Financial Officer John Nepple. I'll now turn the call over to Greg.

Thank you, Ruth and Ann. Good morning, everyone. Turning to slide three, you can see the agenda for today's call. I'll start with an overview of the second quarter, then hand it over to John, who will go into more detail on our performance. I'll share how we're thinking about the second half of the year, and close with some remarks on the second quarter and how that fits in with what we discussed during our business update last month before opening the lineup for your questions. I want to start by wishing you all well and hope your families and colleagues are safe and healthy. This is a relentless challenge we're all facing. I'd also like to very pointedly thank our team for their hard work, resilience, and focus. Our results in the first half of 2020 are a testament to their dedication to getting the job done, and I couldn't be prouder. Last, I'd like to thank all of you who joined us for our virtual business update meeting last month. We appreciate the positive feedback we've received, and we look forward to continuing the dialogue. With that, let's turn to the quarter, starting with slide four. Bungie delivered a very strong second quarter. With operations reflecting the way we intend to run the business going forward, and demonstrating the benefit of our new operating model, leadership team, and mindset. Performance across all of our core businesses was excellent. Our strong execution against committed crush capacity, exceptional coordination of trade flows, and great risk management allowed us to capture above average margins and deliver solid top and bottom line results. Across the platform, we hit record capacity utilization and crushing, reduced unplanned downtime about 20% year over year, and had the lowest operating quarter cost for Soy Crush in the last three years. We realized the benefit from the risk management decisions we made in the first half of the year, and we are a new business with our focus on innovation and a collaborative approach with customers. We generated strong free cash flow while still being disciplined with capital allocation, and continue to execute on our key priorities, including refining the portfolio and gaining momentum on reducing costs. Agribusiness had outstanding performance this quarter, with improved performance in essentially every part of the business. In oilseeds, as we expected, prior period timing losses were reversed as gains. Average global replacement soy crush margins across the quarter were $27, But because of our active risk management and effective use of working capital to capture market opportunities, we were able to execute at an average of $40 per metric ton. In grains, performance in Brazil was exceptional, as we benefited from increased farmer selling as local prices increased with the devaluation of the Brazilian real. Food and ingredients continues to gain traction and demonstrated our nimbleness and flexibility in the current environment. Even as food service demand fell off as a result of lockdowns around the world, our growing strength with CPG food processors and renewable diesel producers, including new customer wins in those areas, offset the COVID-related impacts in food service. As COVID continues to present challenges for our customers, they are increasingly turning to Bungie because the resilience of our value chain model can provide innovative solutions that will continue to benefit our relationships going forward. With the backdrop of great commercial execution, we continue to focus on optimizing our portfolio and recently entered into an agreement to sell the assets of a small non-core food business in Brazil that produces tomato sauces. We've also officially closed our White Plains office and are well adjusted to our St. Louis headquarters and interim remote working situation. In short, we're very pleased with the results this quarter and very pleased with our overall momentum. Given the strong Q2, our outlook for the full year is now higher. I'll now turn it over to John to walk you through the financials and some of the puts and takes related to our outlook.