Bunge Limited · NYSE:BG
Bunge — Q2 2016 Earnings Presentation
19 slides from Bunge's earnings presentation, Jul 28, 2016
Slide 1: Second Quarter 2016 Earnings Conference Call
Second Quarter 2016 Earnings Conference Call JULY 28, 2016 1 SECOND QUARTER 2016 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 Better than expected Q2 Improving global footprint through investments and strategic partnerships Cost savings on track Progressing on focus areas (Brazil and Europe foods, China crush and U.S. grains) Expect full year EPS growth in 2016; soft Q3 3 SECOND QUARTER 2016 EARNINGS CONFERE
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Jun 30 Six Months Ended Jun 30 $ in millions, except EPS data 2016 2015 2016 2015 Net income attributable to Bunge $121 $86 $356 $349 Net income (loss) per common share from $0.81 $0.50 $2.43 $2.11 continuing operations – diluted (1) Net income (loss)
Slide 5: 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 10.0% 9.6% 8.3% 8.1% WACC = 7% As of As of Dec 31, 2015 Jun 30, 2016 5 SECOND QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Six Months Ended Jun 30 $ in millions 2016 2015 Funds from Operations (1) $866 $537 Changes in Operating Assets & Liabilities $(1,550) $(837) Cash provided by (used for) Operating $(684) $(300) 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: ($124
Slide 8: 2016 outlook
2016 outlook Agribusiness - Oilseeds Underlying soy demand expected to remain solid • USDA forecasting ~7% global consumption growth for both soymeal and soyoil Mixed soy crushing environment • Near term South America margins under pressure due to farmer retention of soybeans • U.S. and Europe forwa
Slide 9: 2016 outlook
2016 outlook Food & Ingredients Expect $10 to $30m segment EBIT improvement vs. 2015 adjusted result of $192m • Milling expected to continue to benefit from sourcing and new product mix strategies • Tough economies and foreign currency headwinds will continue to present challenges to Edible Oils in
Slide 10: Thank you
Thank you 10 SECOND QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 11: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, Europe, − Grains (corn, wheat, barley, rice) Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 12: Segment volume highlights
Segment volume highlights Quarter Ended Jun 30, Six Months Ended Jun 30, In thousands of metric tons 2016 2015 2016 2015 Agribusiness 33,944 32,802 66,697 64,046 Oilseeds 15,921 15,850 29,955 29,946 Grains 18,023 16,952 36,742 34,100 Edible Oil Products 1,742 1,668 3,344 3,273 Milling Products 1,136
Slide 13: Sugar & Bioenergy highlights
Sugar & Bioenergy highlights Quarter Ended Jun 30, Six Months Ended Jun 30, 2016 2015 2016 2015 Merchandising/Trading Volume (000 mt) 1,757 2,103 3,407 3,663 Milling Volume (mmt of cane) 6.7 7.3 7.0 7.7 Industrial Product Sales Volumes Sugar (000 mt) 227 199 261 425 Ethanol (000 mt) (1) 407 477 662
Slide 14: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments’ earnings before inter
Slide 15: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Total Segment EBIT to net income attributable to Bunge: Quarter Ended Jun 30 Six Months Ended Jun 30 ($ in millions) 2016 2015 2016 2015 Total Segment EBIT $205 $167 $527 $540 Interest income 14 13 24 24 Interest expense (59) (57) (116) (110) Inco
Slide 16: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Continuing operations: Net income (loss)
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average June 30, December 31, (US$ in m illions) 2016 2015 Operating income before income tax $ 1,293 $ 1,290 (1) Effective tax
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 June 30, December 31, (US$ in m illions) 2016 2015 Operating income before income tax
Slide 19: Non-GAAP reconciliation
Non-GAAP reconciliation Operating income before income tax utilized for ROIC calculation Below is a reconciliation of Income from continuing operations before income tax to Operating income before income tax: Trailing 4 Trailing 4 Quarter Average Quarter Average (US$ in m illions) June 30, 2016 Dece