Slide 1: Third Quarter 2017 Earnings Conference Call
Third Quarter 2017 Earnings Conference Call NOVEMBER 1, 2017 1 THIRD QUARTER 2017 EARNINGS CONFERENCE CALL
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 add
Slide 3: CEO's comments
CEO’s comments Q3 results improved sequentially and year-over-year Continued market and industry headwinds; reducing FY 2017 outlook for Agribusiness and Sugar & Bioenergy Continue to execute on our strategy Lower costs and drive higher returns • Competitiveness Program is progressing on track and e
Slide 4: CEO's comments
CEO’s comments Agribusiness conditions will improve Demand & trade growth are solid Supply will adjust to demand Change brings opportunity for global, integrated companies Looking ahead Expect sequential improvement in Q4 Expect earnings improvement in 2018 Segment guidance to be issued with Q4/year
Slide 5: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Sep 30 Nine Months Ended Sep 30 $ in millions, except EPS data 2017 2016 2017 2016 Net income attributable to Bunge $92 $118 $220 $474 Net income (loss) per common share from $0.59 $0.79 $1.38 $3.24 continuing operations – diluted Net income (loss) per
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1) $ billions 1.5 1.4 1.3 1.2 1.2 (2) 2013 2014 2015 2016 Q3' 17 TTM (1) Adjusted Funds From Operations is a non US GAAP measure. Reconciliation to the most directly comparable U.S. GAAP measure is provided in the appe
Slide 7: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$4.5 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5 billion, of which ~$4.7 billion was unused and available at 9/30/2017 Reinvest in the Asset portfolio Return capital business (Cap
Slide 8: Return on invested capital (ROIC)
Return on invested capital (ROIC) Trailing 4Q Average* Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 8.6% 7.4% WACC = 7% 6.1% 5.4% As of As of Dec 31, 2016 Sep 30, 2017 *See appendix for reconciliation 8 THIRD QUARTER 2017 EARNINGS C
Slide 9: Competitiveness Program Update
Competitiveness Program Update $US billion $1.45 Addressable SG&A spend $1.35 baseline: ~$1.35b Total SG&A savings target: $1.1 $250m by end of 2019 • Indirect spend reduction: $125m • Organizational effectiveness savings: $125m Expect to meet or exceed 2017 program target • 2017 savings target: $15
Slide 10: 2017 Outlook
2017 Outlook Agribusiness Adjusting full-year EBIT range to $425 to $500 million • Demand remains strong, though largely spot • Soy crush expected to improve sequentially, though remain below our earlier expectations − Strong US margins supported by large soy harvest − European margins improving as
Slide 11: 2017 Outlook
2017 Outlook Sugar & Bioenergy Adjusting full-year EBIT to $45 to $55 million, reflecting lower Q3 results, lower than expected Brazilian ethanol prices and reduced activity in our trading & distribution business • Q4 is the seasonally strongest period due to tightening ethanol inventories in Brazil
Slide 12: CEO's conclusion
CEO’s conclusion Bunge has a leading global agribusiness and food platform, with premier assets and talent We have a clear strategy and remain well positioned to capitalize on favorable long-term economic and consumer trends We are managing near-term market headwinds with aggressive action to lower
Slide 13: Q&A
Q&A 13 THIRD QUARTER 2017 EARNINGS CONFERENCE CALL
Slide 14: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, Europe, − Grains (corn, wheat, barley, rice) Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 15: Segment volume highlights
Segment volume highlights Quarter Ended Sep 30, Nine Months Ended Sep 30, In thousands of metric tons 2017 2016 2017 2016 Agribusiness 37,316 35,079 108,512 101,776 Oilseeds 15,888 14,178 47,976 44,133 Grains 21,428 20,901 60,536 57,643 Edible Oil Products 1,945 1,762 5,681 5,106 Milling Products 1,
Slide 16: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Sep 30, Nine Months Ended Sep 30, 2017 2016 2017 2016 Merchandising/Trading Volume (000 mt) 2,173 1,765 5,565 5,172 Milling Volume (mmt of cane) 8.4 8.2 15.8 15.2 Industrial Product Sales Volumes: Sugar (000 mt) 340 355 692 616 Ethanol (000 mt) (1) 506 522
Slide 17: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments’ earnings before inter
Slide 18: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted: 18 THIRD QUARTER 2017 EARNINGS CONFERENCE CALL
Slide 19: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of Net income attributable to Bunge adjusted (excl. certain gains & charges and discontinued operations) to net income (loss) per common share-diluted: 19 THIRD QUARTER 2017 EARNINGS CONFERENCE CALL
Slide 20: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average Septem ber 30, Decem ber 31, (US$ in m illions) 2017 2016 Total Segm ent EBIT $ 784 $ 1,143 EBIT attributable to noncontrolling interest 26 36 Interest i
Slide 21: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding Sugar and Bioenergy segment EBIT and certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average Septem ber 30, Decem ber 31, (US$ in m illions) 2017 2016 Total Segm ent EBIT $ 784 $ 1,143 EBIT attributable to non
Slide 22: Non-GAAP reconciliation
Non-GAAP reconciliation Income before income tax utilized for ROIC calculation Below is a reconciliation of Income from continuing operations before income tax to Return before income tax, adjusted: Trailing 4 Trailing 4 Quarter Average Quarter Average (US$ in m illions) Septem ber 30, 2017 Decem be
Slide 23: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2013 2014 (1) 2015 2016 Q3’17 TTM(2) Cash provided by (used for) operating 2,225 1,399 610 1,904 967 activities Foreign exchange (loss) gain 48 215 213 (80) 7 on net debt Working capital changes (