Slide 1: Second Quarter 2018 Earnings Conference Call
Second Quarter 2018 Earnings Conference Call August 1, 2018 1 third 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#2 are subject to various risks and uncertainties. Bunge has provid
Slide 3: CEO's comments
CEO’s comments Q2 performance: • Oilseeds driven by strong soy crush margins and within range of expectations when considering mark-to-market impact • Grain lower than expected due to South American origination and trading & distribution • Milling had a strong quarter, while Edible Oils was impacted
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights $ in millions, except EPS data Quarter Ended Six Months Ended June 30, June 30, US$ in millions, except per share data 2018 2017 2018 2017 Net income (loss) attributable to Bunge $ (12) $ 81 $ (33) $ 128 Net income (loss) per common share from continuing operations-
Slide 5: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1) $ billions $1.5 $1.4 $1.3 #2 $0.9 $0.7 (2) (3) 2014 2015 2016 2017 Q2' 18 TTM (1) Adjusted Funds From Operations is a non US GAAP measure. Reconciliation to the most directly comparable U.S. GAAP measure is provided
Slide 6: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$5.6 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5.5 billion, of which $3.5 billion was unused and available at June 30, 2018 #2 Reinvest in the Asset portfolio Return capital busin
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 #2 WACC = 7% 5.2% 4.4% 4.7% 3.7% Ø As of As of December 31, 2017 June 30, 2018 *See appendix for reconciliation 7 SECOND QUARTER 201
Slide 8: Global Competitiveness Program update - June YTD
Global Competitiveness Program update - June YTD(1) Increasing savings target by $50 million to $150 million in 2018 vs. 2017 Addressable Baseline $US million 47 721 702 48 19 674 654 654 37 81 45 573 #2 573 2Q17 YTD Unaddressable 2Q17 YTD GCP 2Q18 YTD Perimeter Notable Other Unaddressable 2Q18 YTD
Slide 9: 2018 Outlook
2018 Outlook(1) Maintaining full-year EBIT of ~$1.3B, exceeding 2017 by ~$700m Agribusiness • Expect full-year EBIT toward the upper end of the range of $800 million to $1.0 billion – Oilseeds expectations have increased due to higher soy crush margins ▪ Significant percentage of 2H capacity hedged
Slide 10: 2018 Outlook
2018 Outlook(1) Sugar & Bioenergy • Decreasing full-year EBIT to breakeven – Lower expected cane crush due to drought – Slower than expected ramp up of ethanol prices – Includes an expected loss of $20 million in our trading & distribution business Fertilizer #2 • Continue to expect full-year EBIT o
Slide 11: CEO's conclusion
CEO’s conclusion • Positive changes bringing heightened focus and fresh energy • We remain confident in our full-year outlook for 2018 • Underlying agribusiness growth drivers are intact • We have a variety of drivers to grow beyond this year #2 11 SECOND QUARTER 2018 EARNINGS CONFERENCE CALL
Slide 12: Q&A
Q&A 12 third Quarter 2017 earnings conference call
Slide 13: 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, Argentina Grain tradin
Slide 14: Segment volume highlights
Segment volume highlights Quarter Ended Six Months Ended June 30, June 30, In thousands of metric tons 2018 2017 2018 2017 Agribusiness 37,398 36,173 73,203 71,196 Oilseeds 16,650 #2 17,001 31,762 32,088 Grains 20,748 19,172 41,441 39,108 Edible Oil Products 2,261 1,947 4,269 3,736 Milling Products
Slide 15: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Six Months Ended June 30, June 30, In thousands of metric tons 2018 2017 2018 2017 Merchandising/Trading Volume (000 mt) 1,214 1,785 2,440 3,392 Milling Volume (mmt of cane) 7.4 6.9 8.0 7.3 #2 Industrial Product Sales Volumes: Sugar (000 mt) 197 264 223 351
Slide 16: 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 int
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of Net income attributable to Bunge adjusted (excl. certain gains & charges and discontinued operations) to net income (loss) per common share-diluted: Quarter Ended Six Months Ended June 30, June 30, (US$ in millions, except per share data) 20
Slide 18: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended Six Months Ended June 30, June 30, (US$ in millions) 2018 2017 2018 2017 Net income (loss) attributable to Bunge #2 $ (12) $ 81 $ (33) $ 128 Interest income (6)
Slide 19: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average June 30, December 31, (US$ in millions) 2018 2017 Total Segment EBIT $ 362 $ 436 EBIT attributable to noncontrolling interest 15 19 Interest income 32 38
Slide 20: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital excluding Sugar and Bioenergy segment EBIT and certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average June 30, December 31, (US$ in millions) 2018 2017 Total Segment EBIT $ 362 $ 436 EBIT attributable to noncontrolling
Slide 21: 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 #2 Quarter Average Quarter Average (US$ in millions) June 30, 2018 December 31,
Slide 22: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2014 (1) 2015 2016 2017 Q2'18 TTM (2) Cash provided by (used for) operating activities 1,399 610 1,904 1,006 (1,023) Foreign exchange (loss) gain on net debt 215 213 (80) (21) (225) Working capita
Slide 23: third Quarter 2017 earnings conference call
23 third Quarter 2017 earnings conference call