Slide 1: First Quarter 2016 Earnings Conference Call
First Quarter 2016 Earnings Conference Call APRIL 28, 2016 1 FIRST QUARTER 2016 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 Solid start to 2016 • Agribusiness managed margins, logistics and risk management well in a challenging environment • Seeing positive signs in Brazil foods businesses Expectation to grow earnings in 2016 intact • Improving global crush environment in second half • Emerging dislocation
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Mar 31, $ in millions, except EPS data 2016 2015 Total segment EBIT 1 $322 $373 Agribusiness 2 282 330 Oilseeds 138 242 Grains 144 88 Food & Ingredients 3 52 72 Sugar & Bioenergy (14) (23) Fertilizer 2 (6) Net income (loss) per common share from $1.60
Slide 5: 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 10.0% 9.4% 8.3% 7.9% WACC = 7% As of As of Dec 31, 2015 Mar 31, 2016 5 FIRST QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 6: Bunge Limited cash flows
Bunge Limited cash flows Quarter Ended Mar 31, $ in millions 2016 2015 Funds from Operations 1 491 173 Changes in Operating Assets & Liabilities (414) 135 Cash Provided by (Used for) Operating $77 $308 Activities • Bunge has committed credit facilities of ~$5.0 billion, of which ~$3.3 billion was un
Slide 7: Right balance: capital allocation priorities
Right balance: capital allocation priorities Balance sheet strength (Target BBB credit rating) • Investment grade critical • Commodity companies require capital buffer Reinvest in the M&A Return capital business (Capex) to shareholders • Productivity • Filling gaps in Agribusiness • Dividends: ($62m
Slide 8: 2016 outlook
2016 outlook Agribusiness - Oilseeds Underlying soy demand expected to remain solid • USDA forecasting 7% global consumption growth for both soymeal and soyoil Overall, strong soy crushing environment • Brazil benefiting from large soybean crop, favorable farmer economics and good domestic meal dema
Slide 9: 2016 outlook
2016 outlook Food & Ingredients Expect improvement from 2015 • Tough economies and foreign currency headwinds will continue to present challenges in Brazil and Eastern Europe – Cautiously optimistic that improved volumes and local currency margins in Brazil will continue • North America businesses e
Slide 10: Thank you
Thank you 10 FIRST QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 11: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, − Grains (corn, wheat, barley, rice) Europe, Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 12: Segment volume highlights
Segment volume highlights Quarter Ended Mar 31, In thousands of metric tons 2016 2015 Agribusiness 32,753 31,244 Oilseeds 14,034 14,096 Grains 18,719 17,148 Edible Oil Products 1,602 1,605 Milling Products 1,106 1,080 Sugar & Bioenergy 1,923 2,216 Fertilizer 166 117 12 FIRST QUARTER 2016 EARNINGS CO
Slide 13: Sugar & Bioenergy highlights
Sugar & Bioenergy highlights Quarter Ended Mar 31, 2016 2015 Merchandising/Trading Volume (000 mt) 1,650 1,560 Milling Volume (mmt of cane) 0.3 0.4 Industrial Product Sales Volumes: Sugar (000 mt) 34 226 Ethanol (000 mt) (1) 256 415 Cogeneration Sales (K MWh) 27 28 TRS (kg/mt of cane) (2) 109.5 108.
Slide 14: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Total segment earnings before interest and tax (EBIT) Total segment EBIT is consolidated net income (loss) attributable to Bunge excluding interest income and expense, income tax expense, income (loss) from discontinued operations, net of tax and noncontrolling
Slide 15: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Below is a reconciliation of total segment EBIT to net income attributable to Bunge: Quarter Ended Mar 31, ($ in millions) 2016 2015 Total segment EBIT $322 $373 Interest income 10 11 Interest expense (57) (53) Income tax expense (34) (85) Income (loss) from discontin
Slide 16: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended March 31, 2016 2015 Continuing operations: Net income (loss) per common share - diluted
Slide 17: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average March 31, December 31, (US$ in m illions) 2016 2015 Operating income before income tax $ 1,238 $ 1,290 (1) Effec
Slide 18: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains & charges and Sugar and Bioenergy segment EBIT Trailing 4 Trailing 4 Quarter Average Quarter Average March 31, December 31, (US$ in m illions) 2016 2015 Operating income before i
Slide 19: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Operating income before income tax Below is a reconciliation of Income from continuing operations before income tax to Operating income before income tax: Trailing 4 Trailing 4 Quarter Quarter (US$ in m illions) March 31, 2016 Decem ber 31, 2015 Income from continuing