Bunge Limited · NYSE:BG

Bunge — Investor Presentation (September 2018)

25 slides from Bunge's investor presentation, September 2018

  1. Slide 1: Investor Meeting

    Investor Meeting SEPTEMBER 2018

  2. 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

  3. Slide 3: Our purpose

    Our purpose Connecting harvests to homes across the globe, Bunge brings food from where it’s produced to where it’s needed. Our integrated value chain links origination, storage, and transportation to activities further down the line, including processing, packaging and distribution. This helps farm

  4. Slide 4: Agenda

    Agenda  Performance  Strategy  Sustainability 4

  5. Slide 5: Key messages

    Key messages  We are a stronger, better company as we execute on our strategic priorities  Performance improvement initiatives have significantly increased industrial efficiencies and reduced costs; Global Competitiveness Program (GCP) to provide significant additional savings in SG&A – Includes s

  6. Slide 6: 2017 Scorecard – we are a stronger, better company than ever before

    2017 Scorecard – we are a stronger, better company than ever before We are successfully executing on multiple levers within our control to improve earnings Right Winning Best in Balance Footprint Class Returns-driven capital allocation  ~10% dividend increase  Complete footprint  NOLA port upgra

  7. Slide 7: GCP: SG&A savings target of $250 million

    GCP: SG&A savings target of $250 million Major restructuring and efficiency program to provide significant savings, as well simplifying organizational structure $1.45  On track for $150 million of $1.35 savings by end of 2018; $50 million higher than original target $1.1 $ billion – Senior manageme

  8. Slide 8: Consistent track record of returning capital to shareholders

    Consistent track record of returning capital to shareholders ••••••••••••••••••••••••••••••••••••• $ per share of common stock(1) Cumulative share repurchase history ($m) 1.80 1.64 1.48 1.32 1,275 1,275 1.17 1.06 1,075 0.98 0.90 0.82 0.74 775 0.67 0.63 0.56 0.48 0.3850.42 475 2002 2003 2004 2005 200

  9. Slide 9: Strong cash flow, even in the most challenging conditions

    Strong cash flow, even in the most challenging conditions Adjusted Funds From Operations (Adjusted FFO) 1,2 $ billions 1.5  The recovering 1.4 Agribusiness 1.3 environment along 1.2 with cost 0.9 improvement initiatives will drive higher FFO in 2018 and beyond 2013 2014 2015 2016 2017 1.Adjusted Fu

  10. Slide 10: Q2 2018 Full Year Outlook

    Q2 2018 Full Year Outlook Adjusted EBIT 1,2 Agribusiness $ billions $1.3 $1.3  Expect EBIT in upper end of $800M to $1B range $1.2 $1.2  Strong soy crush market dynamics with ~75% of 2H capacity $1.1 $1.1 secured $1.1  Fertilizer EBIT of ~$25 million Food & Ingredients $0.6  Expect EBIT in lower

  11. Slide 11: Agenda

    Agenda  Performance  Strategy  Sustainability 11

  12. Slide 12: Our global Agri-Food footprint enables comprehensive market coverage

    Our global Agri-Food footprint enables comprehensive market coverage with leading positions in the fastest growing markets Grain origination/infrastructure Port terminal Oilseed processing plant Edible oil facility Grain milling facility 12

  13. Slide 13: Underlying Agribusiness growth drivers are intact

    Underlying Agribusiness growth drivers are intact World Trade of Corn, Wheat and Soy World Soy Crush MMT MMT 360 340 320 300 280 260 Increase by ~80mmt Increase by ~180mmt 240 220 200 180 160 Source: Bunge analysis 13

  14. Slide 14: Integrated value chain maximizes results

    Integrated value chain maximizes results “where we start”  efficiency Supply chain  Reduces costs Customer  Partner of choice Grain Origination Oilseed Processing Transportation & Logistics Marketing & Distribution Oil Refining & Packaging Wheat, Corn & Rice Milling  Market insight Food & Agribu

  15. Slide 15: Acquisition of Loders Croklaan positions Bunge as the global leader in B2B edible oils

    Acquisition of Loders Croklaan positions Bunge as the global leader in B2B edible oils  Aligns with strategic initiative to increase presence in higher margin downstream food products  Creates a comprehensive product offering derived from seed and tropical oils, with leading (1) Source: USDA, FAO,

  16. Slide 16: Incremental EBIT opportunity beyond 2018

    Incremental EBIT opportunity beyond 2018 We have a variety of drivers, which will enable us to grow earnings even as Agribusiness soy crush margins normalize $US million ~$100 ~$80 ~$75 ~$300 ~$55 - $325 $70-95 Bunge F&I core growth Loders + GCP SG&A Industrial synergies (1) savings savings (2) (1)

  17. Slide 17: Our strategy is aligned with the right trends

    Our strategy is aligned with the right trends Broad portfolio of oils, fats, edible grains Healthy, less processed foods with innovation capabilities that align with changing trends Food security Multi-origin supply and integrated logistics control Supply chain visibility Quality and logistics contr

  18. Slide 18: Agenda

    Agenda  Performance  Strategy  Sustainability 18

  19. Slide 19: Evolving Consumer Perception of Sustainability

    Evolving Consumer Perception of Sustainability 87% 73% impacted in believe large attitude or companies behavior play a role Source: Hartman Group 19

  20. Slide 20: Strong Commitments Across the Business

    Strong Commitments Across the Business 21st Century Value Chains Zero-deforestation, human rights protection, CEO Water Mandate, product traceability Climate Change Understand and promote adaption and resilience in Bunge operations and supply chains Resource Management Reduce Bunge’s water, waste, e

  21. Slide 21: Zero-Deforestation Strategy with Industry Leading Programs

    Zero-Deforestation Strategy with Industry Leading Programs Principles Strategies Progress & Activities • >/= 90% traceability direct supply in key areas Develop traceable & monitored Maintain supply chains competitiveness • Decision support tool for expansion Identify & expand over open land & go zo

  22. Slide 22: In summary

    In summary  We are a stronger, better company than we were before  We have the industry’s leading agribusiness footprint that is ideally positioned for the current environment  We expect significant year-over-year EBIT improvement in 2018  We have a variety of drivers to grow earnings beyond 201

  23. Slide 23: Q&A

    BUNGE O&A

  24. Slide 24: Non-GAAP reconciliation notes

    Non-GAAP reconciliation notes 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

  25. Slide 25: Investor Meeting

    Investor Meeting SEPTEMBER 2018

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