Bunge Limited · NYSE:BG
Bunge — Citi 2014 Global Consumer Conference
12 slides from Bunge's conference presentation, May 28, 2014
Slide 1: Citi 2014 Global Consumer Conference
Citi 2014 Global Consumer Conference MAY 28, 2014 1 CITI 2014 GLOBAL CONSUMER CONFERENCE
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: Bunge Today
Bunge Today Average Net Operating Assets 1% NET SALES EMPLOYEES FACILITIES COUNTRIES 6% Agribusiness 15% Sugar Food & Ingredients $61 B 15% 63% Fertilizer ~35,000 ~400 40+ Other AGRIBUSINESS FOOD & INGREDIENTS SUGAR & BIOENERGY • A global leader in oilseed • Leading producer of oils, • Leader in glo
Slide 4: Strategic Focus
Strategic Focus Stand for Safety Zero-incident culture Focus on HPEs Best in Class Right Balance Close performance gaps Targeted growth in core Enhance core Increase value-added capabilities Sugar milling review Invest in talent & learning Clarity & Accountability Enhanced operating model New perfor
Slide 5: Focused on Improving Returns
Focused on Improving Returns Best in Class 2013 Return on Invested Capital 2014/2015 Return on Invested Capital (excluding sugar & bioenergy segment) 9+% 8.5% 7.5% WACC = 7% 5.8% 2013 2014e 2015f Adjusted for certain gains & charges Adjusted for certain gains & charges and excluding sugar & bioenerg
Slide 6: Achieving Best in Class
Achieving Best in Class BEST IN CLASS Closing Performance Gaps Capacity utilization (%) Assessing Plant #1 performance of each plant worldwide Plant #1 Plant #2 Benchmarking Industrial efficiencies (%) against best internal and external Plant #2 performance Plant #1 Plant #2 Improved Quality & yield
Slide 7: Performance Management Guiding Principles
CLARITY & Performance Management ACCOUNTABILITY Guiding Principles Value: focus on value creation above capital Performance costs, measure operational value drivers with Scorecard consistent scorecards Beyond “business Granularity: business unit emphasis as usual” BG Radar Improvement: targets based
Slide 8: Capital Allocation Priorities
Capital Allocation Priorities RIGHT BALANCE Balance Sheet Strength (Target BBB credit rating) Investment grade critical Commodity companies require capital buffer Reinvest in the M&A Return Capital Business (Capex) Filling gaps in to Shareholders agribusiness Maintenance Expanding food Dividends Pro
Slide 9: Rebalancing the Portfolio Towards Value Added
Rebalancing the Portfolio RIGHT BALANCE Towards Value Added % Bunge EBIT Currently Future Value Value added added 30% - 22% 35% Grain milling & processing Priorities Oils & fats 9 CITI 2014 GLOBAL CONSUMER CONFERENCE
Slide 10: 2014 Outlook
2014 Outlook Targeting combined Agribusiness-Foods ROIC at WACC + 1.5 points Agribusiness Food & Ingredients Sugar & Bioenergy Demand expected Expect results to improve Running segment to to remain strong throughout the year be free cash flow neutral All major growing Continued emphasis Continuing f
Slide 11: Citi 2014 Global Consumer Conference
Citi 2014 Global Consumer Conference MAY 28, 2014 11 CITI 2014 GLOBAL CONSUMER CONFERENCE
Slide 12: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Return on Invested Capital: • Bunge Limited continuing operations excluding certain gains and charges • Bunge Limited continuing operations excluding certain gains & charges and Sugar & Bioenergy segment EBIT December 31, December 31, (US$ in millions) 2013 2013