Annual General Meeting MAY 25, 2016 1 ANNUAL GENERAL MEETING
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 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 encourages you to review these factors. 2 ANNUAL GENERAL MEETING
Agenda Financial overview Strategy Sustainability 3 ANNUAL GENERAL MEETING
2015 A year of milestones in a challenging environment Fewer serious safety incidents Record EBIT in Agribusiness Adjusted ROIC of 10% for core Agribusiness-Foods, 3 points above WACC Sugarcane milling achieved positive EBIT and free cash flow Mexico wheat milling synergies on track Achieved $100+ million in productivity improvements Secured BBB rating with all 3 agencies Returned $529 million to shareholders Enhanced portfolio mix through M&A 4 ANNUAL GENERAL MEETING
Bunge Limited 2015 earnings highlights Combined Agribusiness and Food & Ingredients EBIT ($m) (1) • Agribusiness had record year, driven by strong soy Agri/F&I crushing results and grain origination and exports Agri/F&I out of Brazil $1.2B $1.2B • F&I results impacted by challenging market conditions in Brazil, which more than offset improved results in North America and ~$50 million of performance S&B S&B improvement initiatives 2014 2015 Sugar & Bioenergy EPS (1) • Sugarcane milling finished year EBIT and free cash flow positive $4.83 • Results impacted by increased start-up and development $4.10 costs associated with our renewable oils JV • Our objective to reduce exposure to milling unchanged Higher EPS primarily reflects lower tax rate 2014 2015 and interest expenses 1 Total segment earnings before interest and tax (“EBIT”) and net income per common share from continuing operations-diluted (excl. certain gains and charges and discontinued operations) are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included at the end of this presentation. 5 ANNUAL GENERAL MEETING
Returns have consistently improved… Bunge Limited Trailing 4Q Average ROIC Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 10.0% 8.4% 8.3% 7.4% 6.6% WACC = 7% 5.8% 2013 2014 2015 6 ANNUAL GENERAL MEETING
…and so has the trend of our EBIT EBIT, four quarter trailing (including & excluding Sugar & Bioenergy segment) (1) $1,600 $1,400 $1,200 $1,000 $800 $600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 '12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15 '15 '15 '15 '16 Bunge Bunge (excl. S&B segment) 1 Adjusted for certain gains & charges 7 ANNUAL GENERAL MEETING
Off to a better than expected start in 2016 – Q1 YTD Agribusiness EBIT ($m) (1) • Managed margins, logistics and risk management $373 $322 well in a challenging market • South America performed well Food & Ingredients 2015 2016 • Results as expected • Seeing positive signs in Brazil EPS (1) $1.58 Sugar & Bioenergy $1.41 • Results as expected • Improved performance in trading and merchandising 2015 2016 • Cane developing well 1 Total segment earnings before interest and tax (“EBIT”) and net income per common share from continuing operations-diluted (excl. certain gains and charges and discontinued operations) are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included at the end of this presentation. 8 ANNUAL GENERAL MEETING
Optimistic about our 2016 outlook Expect earnings growth and returns well above WACC; however Q2 will be soft AGRIBUSINESS FOOD & INGREDIENTS SUGAR & BIOENERGY • Oilseeds • Expect improvement from 2015 • Expect growth in EBIT & FCF – Strong demand - USDA – Tough economies and FX • Favorable price outlook for forecasting 7% soy meal and headwinds will continue to Brazilian ethanol and sugar oil demand yoy present challenges in Brazil hedged at attractive levels and Eastern Europe – Improving global soy crush environment in 2H – North America businesses • Brazil once again low cost expected to continue providing – Softseed crush to remain global sugar producer steady contribution of earnings challenged until new crops • Results to be weighted to 2H – ~$50m of performance • Grain of year due to seasonality improvements – South America to remain primary – Contributions of new supplier of exports until Northern acquisitions Hemisphere harvests – U.S. & Black Sea to benefit from reduced South America production • Fertilizer – Improved farm economics in Argentina encouraging increased use of crop inputs 9 ANNUAL GENERAL MEETING
Agenda Financial overview Strategy Sustainability 10 ANNUAL GENERAL MEETING
Delivering today and building for future… Focused on what we do best • Grains and Oilseeds – extracting more value; disciplined growth Founded : 1818 • Partner of choice for our farmers and downstream customers Net Sales : $43bn Delivering higher returns and a better balance Countries : 40+ • Great execution • Disciplined capital allocation • Higher share of value-added Facilities : ~400 200 years and just getting started 11 ANNUAL GENERAL MEETING
Oilseeds and Grains: The sharpest focus in the industry Improved Gross Profit Margins Bunge Player 2 Player 1 Player 3 Ingredients Staple foods Processed foods Commodity (B2B) (B2C) & foodservice Oilseeds Grains Sugar Bunge “where to play” Raw Customers material Coffee chains Cocoa Flavors/ Fragrances Meat 12 ANNUAL GENERAL MEETING
Our execution is focused in four areas Stand for Safety Winning Best in Class Footprint Right Balance 13 ANNUAL GENERAL MEETING
Improving safety drives improvement in overall company performance Accelerating and strengthening over a decade of safety improvements in Bunge Working to eliminate or control 5 high potential exposures (HPEs) that have accounted for 90% of serious incidents Global worker participation in HPE toolbox talks has exceeded 3 million touch-points and more than 6,000 leaders have completed safety leadership video learning modules WORK AT HAZARDOUS MOBILE CONFINED HOISTED HEIGHT ENERGY EQUIPMENT SPACES LOADS 14 ANNUAL GENERAL MEETING
Secure competitive edge by assembling the right assets and partnerships in the right places Complete key origins Expansion in key demand markets WINNING GLOBAL Add downstream where upstream brings competitive FOOTPRINT advantage Optimize asset portfolio: footprint review, capital partnerships 15 ANNUAL GENERAL MEETING
There is a growing mismatch between where crops are produced and consumed Net Imports: Major Destinations Net Exports: Major Origins 300 100 140 Brazil US 90 130 250 80 120 70 200 110 60 Asia MENA 100 Argentina 150 50 90 40 80 100 30 Black 70 Sea 20 50 60 10 50 - - 40 Asia MENA Brazil, Argentina, and the Black Sea will Asia and the Middle East will rely supply the bulk of growth in world trade increasingly on imports to meet growing demand Source: Bunge analysis 16 ANNUAL GENERAL MEETING
Leading to robust trade growth that fits Bunge’s global footprint World Trade of Corn, Wheat, and Soybeans (MMT) 550 500 450 400 350 Trade Expected to Grow ~150 mmt 300 250 200 17 ANNUAL GENERAL MEETING
Grains: We have a winning global footprint in origination and exports = Strong Bunge presence Canada Black Sea US Gulf Western US Northern Brazil Australia Argentina Center South Brazil US Farmer retention and Bunge Grain Volumes weak distribution margins (mmt) 79 75 75 73 70 59 CAGR: ~7% 53 2010 2011 2012 2013 2014 2015 TTM 18 ANNUAL GENERAL MEETING
Grains: Our focus has been to fill gaps and capture new flows CWB, Canada Nikolayev, Ukraine Barcarena, Brazil Australia • Original project • Opens new flow for • Provides access to high • Minority stake through operational in Q1 2012; corn / beans in Northern growth Asia market JV formed with SALIC capacity of approx. Brazil, one of the fastest • Combines CWB’s • Building additional 3mmt/year growing regions terminal at Geelong western grain assets • New project increases • Provides lower cost with Bunge’s eastern • Total combined export port capacity by ~25% logistical alternative to grain assets capacity: ~2mmt or 0.75mmt/year congested ports in • Improves geographic Santos / Paranauga • Logistically advantaged balance of Bunge’s grain footprint • Target volume ~4mmt to serve EU, the MENA & Mediterranean • Provides greater • Operational as of Q2 market access for • Completed: Q2 2015 2014 Canadian growers • Closed: Q4 2015 19 ANNUAL GENERAL MEETING
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