Slide 1: First Quarter 2017 Earnings Conference Call
First Quarter 2017 Earnings Conference Call MAY 3, 2017 1 FIRST 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 Challenging start to 2017 • Slow farmer selling compressed margins • Limited forward distribution opportunities • Teams managed tough environment well Expect solid earnings growth in 2017 • Record South American soy and corn crops with over 70% remaining to be priced • Improving globa
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Mar 31, $ in millions, except EPS data 2017 2016 Net income attributable to Bunge $47 $235 Net income (loss) per common share from continuing $0.31 $1.60 operations – diluted (1) Net income (loss) per common share from continuing $0.35 $1.41 operations
Slide 5: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1,2) $ billions 1.5 1.4 1.3 1.3 1.2 (3) 2013 2014 2015 2016 Q1' 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 ap
Slide 6: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$4.2 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5 billion, of which ~$4.8 billion was unused and available at 3/31/2017 Reinvest in the Asset portfolio Return capital business (Cap
Slide 7: 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% 7.2% 6.3% As of As of Dec 31, 2016 Mar 31, 2017 *See appendix for reconciliation 7 FIRST QUARTER 2017 EARNINGS CO
Slide 8: 2017 Outlook
2017 Outlook Agribusiness Expect full-year EBIT of $800 to $925 million; adjusting range due to delay in recovery of soy crush margins • Demand remains strong • Record South American soy and corn crops with significant percentage remaining to be priced and Brazil farmer storage capacity well below c
Slide 9: 2017 Outlook
2017 Outlook Sugar & Bioenergy Continue to expect EBIT of $100 to $120 million • Have hedged much of our 2017 sugar production at higher year-over-year prices • Our cane yields and sugar content developing well • Similar to past years, results will be seasonally weak until the second half Fertilizer
Slide 10: Q&A
Q&A 10 FIRST QUARTER 2017 EARNINGS CONFERENCE CALL
Slide 11: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, Europe, − Grains (corn, wheat, barley, rice) Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 12: Segment volume highlights
Segment volume highlights Quarter Ended Mar 31, In thousands of metric tons 2017 2016 Agribusiness 35,023 32,753 Oilseeds 15,087 14,034 Grains 19,936 18,719 Edible Oil Products 1,789 1,602 Milling Products 1,074 1,106 Sugar & Bioenergy 1,847 1,923 Fertilizer 162 166 12 FIRST QUARTER 2017 EARNINGS CO
Slide 13: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Mar 31 2017 2016 Merchandising/Trading Volume (000 mt) 1,607 1,650 Milling Volume (mmt of cane) 0.5 0.3 Industrial Product Sales Volumes: Sugar (000 mt) 87 34 Ethanol (000 mt) (1) 227 256 Cogeneration Sales (K MWh) 25 27 TRS (kg/mt of cane) (2) 112.1 109.5
Slide 14: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments’ earnings before inter
Slide 15: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended Mar 31, ($ in millions) 2017 2016 Net income (loss) attributable to Bunge $47 $235 Interest income (12) (10) Interest expense 65 57 Income tax expense (benefit) 28 34
Slide 16: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share- diluted: Quarter Ended March 31, 2017 2016 Continuing operations: Net income (loss) per common share - diluted adjust
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average March 31, Decem ber 31, (US$ in m illions) 2017 2016 Total Segm ent EBIT $ 954 $ 1,143 EBIT attributable to noncontrolli
Slide 18: Non-GAAP reconciliation notes
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, Decem ber 31, (US$ in m illions) 2017 2016 Total Segm ent EBIT $ 954 $ 1,14
Slide 19: 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) March 31, 2017 Decem ber 31,
Slide 20: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2013 2014 (1) 2015 2016 Q1’17 TTM(2) Cash provided by (used for) operating 2,225 1,399 610 1,904 1,780 activities Foreign exchange (loss) gain 48 215 213 (80) (16) on debt Working capital changes