Bunge Global SA

Good morning and welcome to the Bungie Limited second quarter 2022 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 start key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Ruthann Weisner. Please go ahead.

Thank you, Jason, and thank you for joining us this morning for our second quarter earnings call. 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 Greg Heckman, Bungie's Chief Executive Officer, and John Neffel, Chief Financial Officer. I'll now turn the call over to Greg.

Thank you, Ruthann. Good morning, everyone. I want to start by congratulating our team for another strong quarter, thanks to their continued focused execution in this highly dynamic environment. The results that the team delivered confirms that Bungie's global asset footprint, coupled with our operating model, enables us to more quickly adapt to market shifts. Those changes can be difficult to immediately predict, but our team has the agility and discipline to adjust and capitalize on market opportunities over time. With our flexibility and global view of the end-to-end value chains, we're able to help our customers find solutions to the challenges and opportunities they encounter. The war in Ukraine has dramatically upset traditional origin to destination trade flows, and we've worked to find different sources for products that our customers want. Our innovation teams have also been working alongside our customers to help them reformulate products in response to tightening supplies. At the same time, we're keeping our focus on sustainability, including our commitment to have deforestation-free supply chains in 2025. Bunge's Sustainable Partnership Program uses tools like farm-scale satellite monitoring to help resellers assess their suppliers' social environmental performance in the Brazilian Cerrado. As described in our most recent sustainability report, Bungie is now able to monitor at least 64% of indirect volumes in our priority regions, surpassing the 50% target set for the end of 2022. Our ability to optimize value for both our customers and Bungie is reflected in our results today, as well as in our long-term view of our opportunity, which we'll touch on later. But first, turning to second quarter numbers, we continued to build on our strong momentum. delivering our 11th consecutive quarter of year-over-year earnings growth. Results in agribusiness and also in refined and specialty oils benefited from strong demand and continued tight commodity supplies. Milling results were up delivering a record quarter as our teams effectively managed our supply chains in a dynamic environment. Looking ahead, We're expecting to deliver adjusted EPS of at least $12 per share for the full year 2022. And that's up from the outlook we provided last quarter. This includes increased estimates in all of our core segments. Supplies remain tight in the physical markets across all of our key businesses, regardless of the commodity volatility driven by the broader financial markets. Regular seasonal production factors and continued global supply chain challenges make the value of the services we bring to our customers more relevant than ever, and gives us confidence in our outlook. Before handing it over to John, I want to take a moment to discuss both the updated earnings baseline and the growth framework we've announced today. When we first introduced our mid-cycle baseline in June of 2020, we were early in our work to transform our operating model and optimize our portfolio. We provided that earnings framework to help you think about how we intended to operate the business with the changes we were making. With the initial portfolio and organizational work now behind us, we're updating our baseline in the earnings framework from $7 to $8.50, and that reflects our global platform as it stands today. This includes the structural improvements in the oilseed market environment and greater benefits from our operating model. We're also providing you with a way to think about what our platform can deliver in the future. And that's because we've been deploying capital for growth, making investments in our business that will continue to increase our earnings baseline. We also intend to allocate capital for share repurchases. The incremental earnings from capital that we're deploying should enable us to perform at a higher level in a mid-cycle environment. As a result, we're providing a four-year earnings growth framework of approximately $11 per share by the end of 2026. This growth framework includes the increased earnings baseline of $8.50 plus the futures benefits of investments in the business and share repurchases. With that, I'll hand the call over to John to walk through the results and the updated framework in more detail.