Slide 1: Fourth Quarter 2017 Earnings Conference Call
Fourth Quarter 2017 Earnings Conference Call February 14, 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 Q4 more challenging than expected • Agribusiness impacted by weak margins; sugarcane milling impacted by adverse weather • Food & Ingredients finished year on strong note driven by Edible Oils Continue to execute on our strategy • Reduce costs and drive higher returns – Competitivenes
Slide 4: CEO's comments: Looking ahead
CEO’s comments Looking ahead • Relentless focus on costs, leveraging profit recovery from improvement in market conditions • Expect all segments to show yoy EBIT improvement – Global growth in demand remains solid – Soy crush showing positive signs of turning – Food & Ingredients should build on its
Slide 5: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Year Ended $ in millions, except EPS data December 31, December 31, US$ in millions, except per share data 2017 2016 2017 2016 Net income (loss) attributable to Bunge $ (60) $ 271 $ 160 $ 745 Net income (loss) per common share from continuing operation
Slide 6: 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 1.2 0.9 2013 2014 2015 2016 2017 (1) Adjusted Funds From Operations is a non US GAAP measure. Reconciliation to the most directly comparable U.S. GAAP measure is provided in the appendix. A
Slide 7: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$4.2 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5 billion, of which $5 billion was unused and available at 12/31/2017 #2 Reinvest in the Asset portfolio Return capital business (Ca
Slide 8: Return on invested capital (ROIC)
Return on invested capital (ROIC) Trailing 4Q Average* Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 8.6% #2 7.4% WACC = 7% 5.2% 4.4% Ø As of As of Dec 31, 2016 Dec 31, 2017 *See appendix for reconciliation 8 FOURTH QUARTER 2017 EARN
Slide 9: Global Competitiveness Program update
Global Competitiveness Program update(1) Program Targets ($M) Savings Addressable Year Target SG&A Target Savings of $40 million exceeded 2017 target by $25 million Baseline 1,350 2017 15 1,335 2018 100 1,250 2019 180 1,170 $US million 2020 250 1,100 1,450 1,445 100 100 20 1,350 1,350 40 55 1,345 1,
Slide 10: 2018 Outlook
2018 Outlook(1) Expect all segments to show yoy improvement Agribusiness • Expect EBIT of $550 to $700 million vs 2017 adjusted EBIT of $332 – Demand remains strong, supported by growing global livestock industry – Expect soy crush margins to improve - seeing positive signs ▪ Soymeal more competitiv
Slide 11: 2018 Outlook
2018 Outlook(1) Expect all segments to show yoy improvement Sugar & Bioenergy • Expect EBIT of $50 to $70 million vs. 2017 adjusted EBIT of $3 million – Assumes normal weather – Excludes any impacts related to exiting sugar trading and renewable oils joint venture – Results expected to be seasonally
Slide 12: CEO's conclusion
CEO’s conclusion • 2017 was a challenging year, but we remain proud of our team and our accomplishments • Bunge has a leading global agribusiness and food platform with an unrivaled global footprint • We remain committed to our strategy of increasing our value-added portfolio, and the acquisition of
Slide 13: Q&A
Q&A 13 third Quarter 2017 earnings conference call
Slide 14: 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 15: Segment volume highlights
Segment volume highlights Twelve months ended Quarter Ended December 31, December 31, In thousands of metric tons 2017 2016 2017 2016 Agribusiness 34,343 32,829 142,855 134,605 Oilseeds 15,938 16,011 63,914 60,144 Grains 18,405 #2 16,818 78,941 74,461 Edible Oil Products 2,050 1,883 7,731 6,989 Mill
Slide 16: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Twelve months ended December 31, December 31, 2017 2016 2017 2016 Merchandising/Trading Volume (000 mt) 2,022 2,214 7,587 7,386 #2 Milling Volume (mmt of cane) 4.0 4.3 19.8 19.4 Industrial Product Sales Volumes: Sugar (000 mt) 336 313 1,027 930 Ethanol (000
Slide 17: 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 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 Year Ended December 31, December 31, (US$ in millions) #2 2017 2016 2017 2016 Net income (loss) attributable to Bunge $ (60) $ 271 $ 160 $ 745 Interest income (
Slide 19: 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 Year Ended December 31, December 31, (US$ in millions, except per share data)
Slide 20: 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 December 31, December 31, (US$ in millions) 2017 2016 Total Segment EBIT $ 436 $ 1,143 EBIT attributable to noncontrolling interest 19 36 Interest income
Slide 21: 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 December 31, December 31, (US$ in millions) 2017 2016 Total Segment EBIT $ 436 $ 1,143 EBIT attributable to noncontr
Slide 22: 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) December 31, 2017 December
Slide 23: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2013 2014 (1) 2015 2016 2017 Cash provided by (used for) operating activities 2,225 1,399 610 1,904 1,006 Foreign exchange (loss) gain on net debt 48 215 213 (80) (21) Working capital changes (1,0