Bunge Limited · NYSE:BG
Bunge — Merger or Acquisition (January 2010)
10 slides from Bunge's merger presentation, Jan 27, 2010
Slide 1: Sale of Brazilian Fertilizer Nutrients Assets
Sale of Brazilian Fertilizer Nutrients Assets January 27, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements • This presentation includes forward-looking statements that reflect Bunge’s current views with respect to future events, financial performance and industry conditions, including with respect to Bunge’s proposed sale of its fertilizer nutrients business to Vale S.A. These
Slide 3: Transaction Overview
Transaction Overview • Divested Assets: • Wholly owned nutrients assets in Brazil (2 mines, related production facilities) • 42.3% interest in Fertilizantes Fosfatados S.A. (Fosfertil) • Consideration: • $3.8 billion gross ($3.5 billion net) in cash • Use of Proceeds: • Growth investments and debt r
Slide 4: Strategic Rationale
Strategic Rationale • Immediately realize significant value created in the fertilizer business • Fertilizer industry undergoing change – opportune time to exit upstream activities • Enables Bunge to focus resources on growth of global agribusiness and food & ingredients businesses • Improves Bunge’s
Slide 5: Changing Fertilizer Market Dynamics
Changing Fertilizer Market Dynamics Historical DAP pricing (FOB Tampa) Historical FX – BRL / USD ($ / tonne) $1,400 4.00 $1,200 $1,000 3.00 $800 $600 $400 2.00 $200 – 1.00 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Source: Bloomberg Source: Bloomberg • Signif
Slide 6: Valuation Perspectives
Valuation Perspectives ($ in millions) Purchase EBITDA price Revenue EBITDA multiple Total $3,800 2007-2009 average $1,456 $302 12.6x Fosfertil – Bunge's 42.3% share $2,150 2007-2009 average $646 $188 11.4x Bunge Nutrients $1,650 2007-2009 average $810 $114 14.5x Source: Fosfertil filings and Bunge
Slide 7: Focus Resources on Core Businesses and New Value Chains
Focus Resources on Core Businesses and New Value Chains • Enable faster expansion into global complementary value chains • Build on sugar, invest in palm and strengthen food & ingredients portfolio • Build global footprint and leverage commercial, logistics and risk management expertise over larger
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Slide 9: Assets Included in Sale / Retained Businesses
Assets Included in Sale / Retained Businesses Assets Included in Sale Retained Businesses • Brazilian Nutrients Assets: • Brazil: • Phosphate rock mines (2 locations) • NPK retail • Sulfuric acid plants (3 locations) • Phosphoric acid plants • Morocco JV: • SSP plants (3 locations) • Feed phosphate
Slide 10: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes YTD (in millions) 2007 2008 Sept. 30, 2009 Bunge Nutrients EBITDA $87 $284 $(57) Depreciation/Amort (36) (39) (25) Interest Income/Expense 2 2 - Income Tax (39) (38) 30 Net Income $14 $209 $(52) Fosfertil (42.3% share) EBITDA $197 $305 $14 Depreciation/Amort (68