BMO Capital Markets Farm to Market Conference MAY 21, 2015 1 BMO - PowerPoint PPT Presentation

BMO Capital Markets Farm to Market Conference MAY 21, 2015 1 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

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 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Bunge Limited: A leading global agribusiness & food company Founded: 1818 Net Sales: $58 billion Countries: 40+ Facilities: ~400 3 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Delivering today and building for the future Focused on what we do best • Grains and Oilseeds – extracting more value; disciplined growth • Partner of choice for our farmers and downstream customers Delivering higher returns and a better balance • Great execution • Disciplined capital allocation • Higher share of value-added 200 years and just getting started 4 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

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 Coffee material chains Cocoa Flavors/ Fragrances Meat 5 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Sugar & Bioenergy plans and performance Trading & merchandising • Core activity Milling • Disciplined plan to reduce exposure • Business is stable and improving • Supporting our strong team in building a sustainable business • Finished 2014 adjusted free cash flow neutral 6 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

EPS growth with consistently high returns Return on Invested Capital targets (excluding Sugar & Bioenergy segment) (1) Agribusiness Food & Ingredients Bunge 13% 10% 9.5% ~9% 8.4% ~8% 2017 EPS Target WACC = 7% ~$8.50 2014 2014 2017 target 2017 target 2014 2017 target (1) Adjusted for certain gains & charges 7 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Our execution is focused in four areas Stand for Safety Right Balance Best in Class Winning Footprint 8 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Improving safety drives improvement in overall company performance  Accelerating and strengthening over a decade of safety improvements in Bunge  New global safety leadership reporting to executive committee STAND FOR SAFETY  Working to eliminate or control the 5 high potential exposures that account for 90% of fatalities and serious injuries Work Hazardous Mobile Confined Hoisted at Height Energy Equipment Spaces Loads 9 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Secure competitive edge by assembling the right assets and partnerships in the right places  Complete key origins  Expansion in key demand markets WINNING  Add downstream where upstream brings competitive GLOBAL FOOTPRINT advantage  Optimize asset portfolio: footprint review, capital partnerships 10 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Increases in population and income continue to drive impressive growth in long term demand and crop production World Production of Corn, Wheat World Consumption (MMT) and Soybeans (MMT) 1,200 2,400 1,100 1,000 2,300 900 2,200 800 700 2,100 600 2,000 Corn Wheat 1,900 400 1,800 300 1,700 200 1,600 100 1,500 0 1,400 Soybean Veg-oils 08/09 13/14 18/19 24/25 Source: Bunge analysis 11 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

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 supply Asia and the Middle East will rely increasingly on the bulk of growth in world trade imports to meet growing demand Source: Bunge analysis 12 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

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 13 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Bunge has a winning global Grains footprint in origination and exports = Strong Bunge presence Canada Black Sea US Gulf Western US Northern Brazil Australia Argentina Center South Brazil 14 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

In Grains, our focus has been to fill gaps and capture new flows CWB, Canada Nikolayev, Ukraine Barcarena, Brazil Australia • • • • Majority stake through JV Original project operational in Opens new flow for corn / Provides access to high formed with SALIC Q1 2012; capacity of approx. beans in Northern Brazil, one growth Asia market 3mmt/year of the fastest growing regions • • Combines CWB’s western Building additional terminal at • • grain assets with Bunge’s New project increases port Provides lower cost logistical Geelong eastern grain assets capacity by ~25% or alternative to congested ports • Total combined export 0.75mmt/year in Santos / Paranauga • Improves geographic balance capacity: ~2mmt • • of Bunge’s grain footprint Logistically advantaged to Target volume ~4mmt serve EU, the MENA & • • Provides greater market Operational as of April 2014 Mediterranean access for Canadian growers • Expected completion: 1H 2015 • Expected closing: 2H 2015 15 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

We have a balanced global Oilseed Processing presence Region with % of Bunge Total and Type Bunge oilseed North America 29% Soybean, Canola processing plant South America 37% Soybean (inclusive of JVs) Europe 19% Soybean, Rapeseed, Sunseed Asia 15% Soybean 16 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Completing a winning global footprint in Oilseeds: targeted growth in key regions Focus on Chain Optimization and Targeted Growth Villeta, Paraguay (JV) Altona, Canada Nikolayev, Ukraine • Produces high-protein • Increasing capacity to • Building a 2.4kmt/day sun / soybean meal for Asia, 2.5kmt/day vs 1.1kmt/day 1.7kmt soy switch plant MENA markets • Larger scale creates best- • Advantaged location for • 4.5kmt/day plant co- in-class operations serving customers in located at port terminal MENA, EU and India • Operational in Q4 2014 • Operational since Q4 2013 • Expected completion Q4 2015 17 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Enhance margins through the mix of businesses, products and customers  Increase Food & Ingredients businesses with tight linkages to upstream Agribusiness RIGHT  Food & Ingredients organic margin expansion: category BALANCE growth framework  Agribusiness: services and differentiation 18 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Bunge has a global full chain footprint with #1 or #2 market positions in key regions, with significant growth potential Oil #1 Dry Corn #1 E. Europe Oil Facility Oil #1 Rice Mill Corn Mill Wheat #2 Wheat Mill Oil #1 Wheat #1 #1 Seed Oil Producer Globally, #1 Wheat Miller in Latin America 19 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Right balance: portfolio shift toward more value-added, reducing volatility and increasing returns % Bunge EBIT 2012 2014 Future Value Value Value added added added 25% 16% ~35% • Grain milling & processing • Oils & fats Priorities • Achieved through a combination of organic and M&A 20 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Right balance: capital allocation priorities Balance sheet strength (Target BBB credit rating) • Investment grade critical • Commodity companies require capital buffer Reinvest in the Return capital M&A business (Capex) to shareholders • Dividends: ($230m) • Filling gaps in • Productivity Agribusiness • Share repurchases: • Growth • Expanding Food & ($300m) Ingredients 2014 = $839m 2014 = $39m 2014 = $530m Use of capital focused on maximizing returns 21 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Growing annual dividends US$ per share of common stock • Dividends have increased every 1.32 year since 2001 1.17 IPO, averaging 1.06 ~11% growth 0.98 0.90 • Earlier this week 0.82 0.74 announced a 0.63 0.67 11.8% increase for 0.56 this year 0.385 0.42 0.48 • Expect to maintain increases in line with historical average 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 22 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE

Share repurchase update Repurchased $200 million of common shares in Q1 2015, completing $975 million program Announced new $500 million program earlier this week 23 BMO CAPITAL MARKETS FARM TO MARKET CONFERENCE