Bunge Limited · NYSE:BG
Bunge — Q2 2008 Earnings Presentation
18 slides from Bunge's earnings presentation, Jul 24, 2008
Slide 1: Second Quarter 2008 Earnings Conference Call
Second Quarter 2008 Earnings Conference Call July 24, 2008
Slide 2: Forward-Looking Statements
2 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 a
Slide 3: Bunge Limited Results Overview
3 Bunge Limited Results Overview Strong Q2 results • Bunge team performed well in a volatile, high priced market • Current environment requires more investment in working capital, effective risk management and integrated global network of operations Long-term trends that drive global demand growth r
Slide 4: Bunge – Corn Products Combination: Complementary Global Operations
4 Bunge – Corn Products Combination Complementary Global Operations Corn Products & Bunge Bunge Corn Products Approximately 32,000 employees in 40 countries Corporate Headquarters
Slide 5: Bunge – Corn Products Combination: Highly Complementary Value Chain
5 Bunge – Corn Products Combination Highly Complementary Value Chain • Improved supply chain and risk management • New food ingredients • Fermentation & enzyme technologies • Combined product innovation • Enhanced sales & distribution Origination Logistics Risk Management Corn (Dry Milling) Corn (We
Slide 6: Bunge Limited Results
6 Bunge Limited Results Quarter Ended June 30 28% $7.56 $1,040 $1,520 67,281 2008 25% $1.35 $182 $302 65,153 2007 NA 460% 471% 403% 3% %- ^ NA 25% 28% Effective Tax Rate (2) 319% $1.30 $5.45 Earnings per Share 347% $168 $751 Net Income 331% $250 $1,078 Total Segment EBIT (1) 2% 35,441 36,318 Volume
Slide 7: Segment Results
7 Segment Results Quarter Ended June 30 $ in millions 1% (1)% 3% %- ^ EBIT Volumes 97% $36 $71 2,396 2,412 Food Products (1) 454% $71 $393 3,045 3,000 Fertilizer 329% $143 $614 30,000 30,906 Agribusiness %- ^ 2007 2008 2007 2008 (1) Includes edible oil products and milling products segments.
Slide 8: Bunge Limited Balance Sheet Summary
8 Bunge Limited Balance Sheet Summary (1) Current assets (excluding cash and cash equivalents and marketable securities) less Current liabilities (excluding short term debt and current portion of long term debt). (2) 12 month rolling average $7,945 $4,547 49.6 $3,358 $5,924 $5,810 Dec. 31, 2007 53.4
Slide 9: Managing the Growth of the Business
9 Bunge Limited Managing the Growth of the Business 50 150 250 350 450 550 650 2001 2002 2003 2004 2005 2006 2007 2008 Index 2001 base year = 100 Annual average of monthly data Gross Debt Shareholders’ Equity Net Sales Operating Working Capital As of 6/30
Slide 10: Bunge Limited Cash Flow Summary
10 Quarter Ended June 30, Six Months Ended June 30, Bunge Limited Cash Flow Summary $(776) $(483) $(594) $(130) Cash Flow from Operations $(210) $(372) $(126) $(224) Capital Expenditures $(1,045) $(1,692) $(820) $(1,059) Working Capital Changes $269 $1,209 $226 $929 Funds from Operations (before wor
Slide 11: Financial Liquidity – Committed Credit Facilities
11 Bunge Limited Financial Liquidity – Committed Credit Facilities Actions to be taken: • Roll-over $1 billion, 364-day, revolving credit facility maturing in Nov-2008 • Refinance $500 million Notes maturing in Dec-2008 as of 6/30/2008 Total Amount Amount $ in millions Maturities availability outsta
Slide 12: Bunge Limited 2008 Outlook
12 Bunge Limited 2008 Outlook Market fundamentals remain solid • Large harvests expected in U.S. and Europe • Acreage must expand in South America to supply global market • Fertilizer fundamentals should remain strong • Food products showing improvement Though not without challenges • Strong Brazili
Slide 13: BUNGE
BUNGE 13
Slide 14: Backup: Non-GAAP Reconciliation
14 Below is a reconciliation of total segment EBIT to net income: Backup: Non-GAAP Reconciliation (1) Includes other amounts not directly attributable to Bunge’s operating segments. $168 2 28 (70) (79) 37 $250 2007 $751 – 46 (337) (90) 54 $1,078 2008 $182 $1,040 Net income – – Other (1) 37 60 Minori
Slide 15: Backup: Non-GAAP Reconciliation Notes
15 Backup: Non-GAAP Reconciliation Notes Total segment earnings before interest and tax Total segment earnings before interest and tax (“EBIT”) is Bunge’s consolidated net income that excludes interest income and expense and income tax attributable to each segment. Total segment EBIT is a non-GAAP f
Slide 16: Backup: Non-GAAP Reconciliation
16 Below is a reconciliation of total long-term and short-term debt to net financial debt and to net financial debt less readily marketable inventories: Backup: Non-GAAP Reconciliation June 30, 2008 ($ in millions) Short-term debt $1,426 Long-term debt, including current portion 4,320 Total debt (1)
Slide 17: Backup: Non-GAAP Reconciliation Notes
17 Backup: Non-GAAP Reconciliation Notes Net Financial Debt Net financial debt is the sum of short-term debt, current maturities of long-term debt and long-term debt, less cash and cash equivalents and marketable securities. Net financial debt is presented because management believes it represents a
Slide 18: Additional Information
18 Additional Information On June 21, 2008, Bunge and Corn Products International, Inc. (Corn Products) entered into a merger agreement pursuant to which Bunge will acquire Corn Products. This material is not a substitute for the joint proxy statement/prospectus and any other documents Bunge and Cor