Slide 1: Annual General Meeting
Annual General Meeting MAY 20, 2015 1 2015 ANNUAL GENERAL MEETING
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: Agenda
Agenda Financial overview Strategy Sustainability 3 2015 ANNUAL GENERAL MEETING
Slide 4: Off to a strong start in 2015 – Q1 YTD
Off to a strong start in 2015 – Q1 YTD Solid performance in Agribusiness EBIT ($m) (1) $373 • Strong soy crushing environment in U.S. and Europe • High margin oilseed export programs • Brazil operations executing well on record crop flows $75 Food & Ingredients performing well in face of 2014 2015 c
Slide 5: Returns are improving
Returns are improving Trailing 4Q Average Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 10.7% 8.8% 8.4% WACC = 7% 7.5% 6.6% 5.8% 2013 2014 YTD Q1 2015 5 2015 ANNUAL GENERAL MEETING
Slide 6: 2015 outlook
2015 outlook Expect strong returns to continue while growing EPS on trajectory to hit LT target AGRIBUSINESS FOOD & INGREDIENTS SUGAR & BIOENERGY • Ag outlook generally favorable as • Expect step up in yoy results • Continue to improve cost and big supplies are met with solid – Continued emphasis on
Slide 7: Delivering today and building for the future
Delivering today and building for the future Focused on what we do best • Grains and Oilseeds – extracting more value; disciplined growth • Partner of choice for our farmers and downstream customers Delivering higher returns and a better balance • Great execution • Disciplined capital allocation • H
Slide 8: Oilseeds and Grains: The sharpest focus in the industry
Oilseeds and Grains: The sharpest focus in the industry Bunge Player 2 Improved Gross Profit Margins Player 1 Player 3 Ingredients Staple foods Processed foods Commodity (B2B) (B2C) & foodservice Oilseeds Grains Sugar Bunge Raw “where to play” material Coffee Customers chains Cocoa Flavors/ Fragranc
Slide 9: Sugar & Bioenergy plans and performance
Sugar & Bioenergy plans and performance Trading & merchandising • Core activity Milling • Disciplined plan to reduce exposure • Business is stable and improving • Supporting our strong team in building a sustainable business • Finished 2014 adjusted free cash flow neutral 9 2015 ANNUAL GENERAL MEETI
Slide 10: EPS growth with consistently high returns
EPS growth with consistently high returns Return on Invested Capital targets (excluding Sugar & Bioenergy segment) (1) Agribusiness Food & Ingredients Bunge 13% 10% 9.5% ~9% 8.4% ~8% 2017 EPS WACC = 7% Target ~$8.50 2014 2017 target 2014 2017 target 2014 2017 target (1) Adjusted for certain gains &
Slide 11: Our execution is focused in four areas
Our execution is focused in four areas Stand for Safety Right Balance Best in Class Winning Footprint 11 2015 ANNUAL GENERAL MEETING
Slide 12: Improving safety drives improvement in overall company performance
Improving safety drives improvement in overall company performance Accelerating and strengthening over a decade of safety improvements in Bunge STAND FOR New global safety leadership reporting to executive committee SAFETY Working to eliminate or control the 5 high potential exposures that acc
Slide 13: Secure competitive edge by assembling the right assets and partnerships
Secure competitive edge by assembling the right assets and partnerships in the right places Complete key origins WINNING Expansion in key demand markets GLOBAL Add downstream where upstream brings competitive FOOTPRINT advantage Optimize asset portfolio: footprint review, capital partnership
Slide 14: Increases in population and income continue to drive growth
Increases in population and income continue to drive impressive growth in long term demand and crop production World Consumption (MMT) World Production of Corn, Wheat 1,200 and Soybeans (MMT) 1,100 2,400 1,000 2,300 900 800 2,200 700 2,100 600 Corn Wheat 2,000 1,900 400 1,800 300 1,700 200 1,600 100
Slide 15: Bunge has a winning global Grains footprint
Bunge has a winning global Grains footprint in origination and exports = Strong Bunge presence Canada Black Sea US Gulf Western US Northern Brazil Australia Argentina Center South Brazil 15 2015 ANNUAL GENERAL MEETING
Slide 16: In Grains, our focus has been to fill gaps
In Grains, our focus has been to fill gaps and capture new flows CWB, Canada Nikolayev, Ukraine Barcarena, Brazil Australia • Majority stake through JV • Original project operational in • Opens new flow for corn / • Provides access to high formed with SALIC Q1 2012; capacity of approx. beans in Nort
Slide 17: We have a balanced global Oilseed Processing presence
We have a balanced global Oilseed Processing presence Region with % of Bunge Total and Type Bunge oilseed North America 29% Soybean, Canola processing plant (inclusive of JVs) South America 37% Soybean Europe 19% Soybean, Rapeseed, Sunseed Asia 15% Soybean 17 2015 ANNUAL GENERAL MEETING
Slide 18: Completing a winning global footprint in Oilseeds
Completing a winning global footprint in Oilseeds: targeted growth in key regions Focus on Chain Optimization and Targeted Growth Villeta, Paraguay (JV) Altona, Canada Nikolayev, Ukraine • Produces high-protein • Increasing capacity to • Building a 2.4kmt/day sun / soybean meal for Asia, 2.5kmt/day
Slide 19: Enhance margins through the mix of businesses, products and customers
Enhance margins through the mix of businesses, products and customers Increase Food & Ingredients businesses with tight linkages to upstream Agribusiness RIGHT Food & Ingredients organic margin expansion: category BALANCE growth framework Agribusiness: services and differentiation 19 2015 ANNU
Slide 20: Global full chain footprint with #1 or #2 market positions
Bunge has a global full chain footprint with #1 or #2 market positions in key regions, with significant growth potential Oil #1 Dry Corn #1 E. Europe Oil Facility Oil #1 Rice Mill Wheat #2 Corn Mill Wheat Mill Oil #1 Wheat #1 #1 Seed Oil Producer Globally, #1 Wheat Miller in Latin America 20 2015 AN
Slide 21: Portfolio shift toward more value-added
Right balance: portfolio shift toward more value-added, reducing volatility and increasing returns % Bunge EBIT 2012 Value 2014 Value Future Value added added added 16% 25% ~35% • Grain milling & processing Priorities • Oils & fats • Achieved through a combination of organic and M&A 21 2015 ANNUAL G
Slide 22: 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 • Dividends: ($230m) • Growth A
Slide 23: Growing annual dividends
Growing annual dividends US$ per share of common stock • Dividends have 1.32 increased every 1.17 year since 2001 1.06 IPO, averaging 0.98 ~11% growth 0.90 0.82 • Yesterday 0.74 0.67 announced a 0.63 0.56 11.8% increase for 0.48 this year 0.385 0.42 • Expect to maintain increases in line with histor
Slide 24: Share repurchase update
Share repurchase update Repurchased $200 million of common shares in Q1 2015, completing $975 million program Announced new $500 million program yesterday 24 2015 ANNUAL GENERAL MEETING
Slide 25: Drive returns by achieving top tier performance in operations and process
Drive returns by achieving top tier performance in operations and process Assess & benchmark performance worldwide BEST IN Measure, prioritize and close performance gaps CLASS Track major initiatives globally Improve knowledge & sharing of best practices globally 25 2015 ANNUAL GENERAL MEETI
Slide 26: Agribusiness: major programs & priorities
Agribusiness: major programs & priorities to drive operational excellence and improve returns Best in Class Crush Global Margin & Risk Optimization Logistics Management ~$200 million EBIT run rate improvement by 2017 26 2015 ANNUAL GENERAL MEETING
Slide 27: Driving higher value in oilseed processing
Driving higher value in Crush Optimization oilseed processing Industrial / Operational Footprint Process Improvements/ Margin Improvements Management Standardization Optimization • Quality – raw • Footprint • Process • Soybean and material and product optimization optimization tools product flow • C
Slide 28: Global logistics flow management
Global logistics flow management: Global Logistics excellence in planning and execution Domestic Transportation Port Utilization & Flows Ocean Freight • Reduce costs by using • Increase capacity • Improve optimization of enhanced risk and utilization / OEE vessel operating costs scenario analysis to
Slide 29: Building a lean culture of operational excellence
In Food & Ingredients, we are building a lean culture of operational excellence across our businesses C O MMERC IA L OPER ATIONA L Category Asset Leadership Optimization Account Process Management Optimization Value Supply Chain Realization Optimization ~$125 million EBIT run rate improvement by 201
Slide 30: Commercial excellence allows us to co-create value
Commercial excellence allows us to Commercial build the right portfolio and co-create value with our customers for consumers Category Leadership Account Management Value Realization • Increase category value • Improve joint business • Enhance product mix and • Strengthen marketing & planning product
Slide 31: Driving greater productivity, quality and agility
We are driving greater productivity, Operational quality and agility through three key operational programs ASSET PROCESS SUPPLY CHAIN OPTIMIZATION OPTIMIZATION OPTIMIZATION • Eliminate resource waste • Increase yields across • Integrated business • Increase total operating processes planning effect
Slide 32: Standardizing and enhancing talent management programs globally
Standardizing and enhancing talent management programs globally • Performance management • Leadership development • Succession planning • Learning management system Building the platform to support business growth and develop our next generation of leaders 32 2015 ANNUAL GENERAL MEETING
Slide 33: Sustainability pillars
Sustainability pillars Sustainable Ag Supply Chain: Promote biodiversity protection, human rights and sustainable practices on farm Climate Change: Understand and promote adaption and resilience in Bunge operations and agriculture generally Resource Management: Reduce Bunge’s water, waste, energy &
Slide 34: Collaborating to protect the Amazon
Collaborating to protect the Amazon Moratorium Breaking Link Between Soy and • No purchase of soy from areas deforested after Deforestation in Amazon July 2008 • Extended until 2016 Soy Working Group • To promote sustainable agriculture among farmers • Create effective mapping and monitoring systems
Slide 35: Journey toward fully traceable palm oil supply
Journey toward fully traceable palm oil supply Global palm oil sourcing policy established 2014 • Forest & Biodiversity Preservation − Protection of High Conservation Value (HCV) areas and High Carbon Stock (HCS) forests • Reduction of GHG Emissions − Protection of peat areas, regardless of depth −
Slide 36: Improved resource management
Improved resource management Goals and % reduction in key indicators 2008-2010 2011-2013 2014-2016 44 34 11 10 10 12 11 5 5 5 3 1 1 3 3 3 3 2 2 Goals Actual Goals Actual Goals -7 2014 Actual CO2/mt H2O/mt Waste reduction in this period related to total Waste/mt GJ/mt volume, not intensity. 36 2015 A
Slide 37: Summary
Summary We are fully committed to a zero incident safety culture across all of Bunge We have an industry leading global footprint that we will continue to enhance - our focus is on grain and oilseed value chains Value-added will play an increasingly important role Long-term industry macro drivers ar
Slide 38: Annual General Meeting
Annual General Meeting MAY 20, 2015 38 2015 ANNUAL GENERAL MEETING
Slide 39: 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 Trailing 4 Quarter Average Quarter Average Quarter Average March 31, Decem ber 31, Decem ber 31, (US$ in m illions) 2015 2014 2013 Operating inc
Slide 40: 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 Trailing 4 Quarter Average Quarter Average Quarter Average March 31, Decem ber 31, Decem ber 31, (US$ in m il
Slide 41: 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 4 Quarters March 31, Decem ber 31, Decem ber 31, (US$ in m illions) 2015 2014 2013 Income (loss)