Slide 1: Second Quarter 2015 Earnings Conference Call
Second Quarter 2015 Earnings Conference Call JULY 30, 2015 1 SECOND QUARTER 2015 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 Opening Comments
CEO’s Opening Comments 3 SECOND QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Jun 30 Six Months Ended Jun 30 $ in millions, except EPS data 2015 2014 2015 2014 Total segment EBIT (1) $167 $418 $540 $493 Certain gains & charges (2) $15 - $15 - Total segment EBIT, adjusted (1) $152 $418 $525 $493 Agribusiness (3) $134 $311 $464 $3
Slide 5: Return on invested capital (ROIC)
Return on invested capital (ROIC) Bunge Limited Trailing 4Q Average Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 9.6% 8.4% 7.9% 6.6% WACC = 7% Dec 31, 2014 Jun 30, 2015 5 SECOND QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Six Months Ended Jun 30 $ in millions 2015 2014 Funds from Operations (1) $537 $592 Changes in Operating Assets & Liabilities $(837) $(1,383) Cash provided by (used for) Operating $(300) $(791) Activities Bunge has committed credit facilities of ~$5.0 billion, of w
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: ($116
Slide 8: 2015 outlook
2015 outlook Expect FY15 ROIC of core Agribusiness-Foods of ~10%; 3 pts. over WACC Agribusiness: expect full year EBIT in excess of $1B Oilseeds: Underlying soy demand expected to remain solid – Large hog herds in U.S., expanding in some areas of South East Asia, while contracting in China – Favor
Slide 9: 2015 outlook
2015 outlook Expect FY15 ROIC of core Agribusiness-Foods of ~10%; 3 pts. over WACC Food & Ingredients Expect improvement from first half levels; however, below second half 2014 Brazil economy will continue to challenge margins and volume; taking additional actions to reduce impact Continued emph
Slide 10: Thank you
Thank you 10 SECOND QUARTER 2015 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 Jun 30, Six Months Ended Jun 30, In thousands of metric tons 2015 2014 2015 2014 Agribusiness 32,802 35,004 64,046 66,678 Oilseeds 15,850 16,202 29,946 29,870 Grains 16,952 18,802 34,100 36,808 Edible Oil Products 1,668 1,716 3,273 3,329 Milling Products 992 1
Slide 13: Sugar & Bioenergy highlights
Sugar & Bioenergy highlights Quarter Ended Jun 30, Six Months Ended Jun 30, 2015 2014 2015 2014 Merchandising/Trading Volume (000 mt) 2,103 1,519 3,663 2,927 Milling Volume (mmt of cane) 7.3 7.0 7.7 7.6 Industrial Product Sales Volumes Sugar (000 mt) 199 190 425 315 Ethanol (000 mt) (1) 477 494 906
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 Jun 30 Six Months Ended Jun 30 ($ in millions) 2015 2014 2015 2014 Total segment EBIT $167 $418 $540 $493 Interest income 13 33 24 52 Interest expense (57) (76) (110) (1
Slide 16: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Continuing operations: Net incom
Slide 17: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Quarters Trailing 4 Quarters June 30, December 31, ($ in m illions) 2015 2014 Operating income before income tax $ 1,350 $ 1,331 Effective tax rate (1) 27%
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 & Bioenergy segment EBIT Trailing 4 Quarters Trailing 4 Quarters June 30, December 31, ($ in m illions) 2015 2014 Operating income before income tax $ 1,350 $
Slide 19: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Operating income before income tax Below is a reconciliation of Income (loss) from continuing operations before income tax to Operating income before income tax: Trailing Trailing 4 Quarters 4 Quarters June 30, December 31, ($ in m illions) 2015 2014 Income from conti