Bunge Limited · NYSE:BG
Bunge — American Seed Trade Association, June 2005
24 slides from Bunge's conference presentation, June 2005
Slide 1: Partnering for the Future
Partnering for the Future Alberto Weisser Chairman and Chief Executive Officer
Slide 2: Our Business
Our Business Agribusiness Fertilizer Food Products Grain & Oilseed Origination Raw Materials Bottled Oil Oilseed Processing Nutrients & Supplements Edible Oils & Fats International Marketing Mixed & Applied Fertilizers Milled Products Alberto Weisser, American Seed Trade Association, June 2005 © 200
Slide 3: Bunge's Global Footprint
Bunge’s Global Footprint Future Consumption Growth Leader in Key Production Regions #1 in Soybean Meal Imports #1 in Soy Product Imports Bunge Sites Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 4: Integrated Operating Model
Integrated Operating Model Fertilizer Agribusiness Food Products Retail Products Grain Oilseed Food Retail and Nutrients and Processing Consumer Origination Processing Services Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 5: Partnering for New Markets
Partnering for New Markets • Market for phytosterol ingredients is growing Projected Phytosterol Market Growth 7.0 6.0 • Pharmaceutical, food 6.0 and other uses 5.0 4.5 '000 tonnes 4.0 4.0 • New cholesterol 3.0 2.5 reducing spreads added 2.0 50% to demand 1.0 0.2 0.0 Pharma Spreads Juice 2002 2007 S
Slide 6: World Food Needs Continue to Grow
World Food Needs Continue to Grow 5% p.a. p.a. in g at 1 .3 wing at 1 . 4% Grow 6,449 6,812 Gro 6,676 6,079 6,080 5,685 5,748 5,275 5,120 5,260 4,932 4,832 1986 1990 1995 2000 2005 2010 1986 1990 1995 2000 2005 2010 World Population World Per Capita Income (millions) 1995 US$ Source: World Bank Albe
Slide 7: Higher Incomes Lead to Better Diets. . .
Higher Incomes Lead to Better Diets. . . World Meat Production (MMT) 2 . 3% p .a. g at Gr o w in 295 259 230 106 201 84 178 68 55 42 114 91 102 70 79 66 67 71 73 75 1990 1995 2000 2005 2010 Beef & Lamb Pork Poultry Source: FAO, Bunge Alberto Weisser, American Seed Trade Association, June 2005 © 2005
Slide 8: . . .That Include More Edible Oils
. . .That Include More Edible Oils Global Vegetable Oil Demand MMT .7% 120 G row t h Rate: 4 100 80 60 40 20 0 1990 1992 1994 1996 1998 2000 2002 2004 Source: USDA Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 9: Fastest Growth in Meat Consumption Occurs When Income is Less Than $5000
Fastest Growth in Meat Consumption Occurs When Income is Less Than $5000 Per Year Total Daily Meat & Fish Calories by Income 600 Total Daily Meat & Fish Calories 500 Consumed per Capita 400 300 200 100 - - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Annual Income Per Capita in 1995 US$ Source: F
Slide 10: Fastest Growth in Meat Consumption Occurs When Income is Less Than $5000
Fastest Growth in Meat Consumption Occurs When Income is Less Than $5000 Per Year 83% Total Daily Meat & Fish Calories by Income 600 Total Daily Meat & Fish Calories Argentina 500 US Consumed per Capita China EU NE Asia Oceania Canada 400 Mercosur E. Europe 300 Brazil C Am ericaWorld 200 FSU Andean
Slide 11: China Has Water Problems
China Has Water Problems Internal Freshwater Resources per Person Norway 83.7 Argentina World East Asia & Pacific Spain China 0 2 4 6 8 10 Source: Economist Thousand Cubic Metres Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 12: Share of Global Soymeal Consumption by Region
Share of Global Soymeal Consumption by Region 1998 2005 Others, 11% Middle East, Middle 1% East, 2% Others, 10% SE Asia, 5% SE Asia, 6% Americas, Americas, 34% 31% NE Asia, 8% NE Asia, 6% China, 9% China, 18% Europe, Europe, 33% 28% Source: Bunge Alberto Weisser, American Seed Trade Association, Jun
Slide 13: Growth Markets for Soy Production
Growth Markets for Soy Production Global Soybean Production (millions of metric tons) % : 7.6 127 GR CA 9% R : 2. CAG 78 81 78 1.5% 51 CAGR: 39 34 27 28 U.S. South America Rest of World 1994 2002 2010 Source: USDA Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 14: North America Will Remain Strong in Grains
North America Will Remain Strong in Grains Global Grain Exports (MMT) 15 15 31 27 Others 30 30 27 Australia and SAF 25 30 26 Eastern Europe 16 21 South America 18 21 EU 15 121 133 North America 105 2003/04 2009/10 2014/15 Source: USDA Alberto Weisser, American Seed Trade Association, June 2005 © 200
Slide 15: And in Meat Exports
And in Meat Exports 9,000 8,000 7,000 ‘000s MT 6,000 5,000 4,000 3,000 2,000 1,000 0 1985 1990 1995 2000 2005 Brazil US EU Thailand China Others Source: FAO Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 16: Logistics and Land are Key Costs
Logistics and Land are Key Costs U.S. Brazil Argentina Expected Yield (tonnes/HA) 3 3.1 2.7 Soybean Cost Structure (US$ / MT) Land Rental 135 31 63 Labor and Machinery 28 41 52 Seeds 30 15 7 Chemicals 24 49 17 Fertilizer 21 43 6 Internal Transport 17 38 22 Port Costs 2 7 3 Ocean Freight 42 55 55 Tot
Slide 17: U.S. Logistics Need Improvement
U.S. Logistics Need Improvement • Locks are too small and 20-30 years past intended life span • Aging barge fleet • Tight railcar market Source: Bunge Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 18: Change in Grain and Soy Consumption in Principal Markets 2004/05-2010
Change in Grain (corn & wheat) and Soy CONSUMPTION in Principle Markets 2004/05-2010 20 32 14 9 6 4 4 1 4 4 23 3 Soy Grain Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited Source: Bunge
Slide 19: Rapid Global Adoption
Rapid Global Adoption Global Area of Biotech Crops Area of Major Biotech Crops (million hectares) (million hectares) 60 81 Soybean M aize 67.7 50 Cotton Canola 58.7 52.6 40 44.2 39.9 30 27.8 20 11 10 1.7 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sour
Slide 20: New Specialty Meals?
New Specialty Meals? More: Energy Methionine Tryptophan Threonine Improved: Amino acid digestibility Less: Enteritis-inducing carbs Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 21: Bunge/DuPont Biotech Alliance
Bunge/DuPont Biotech Alliance Genetics Seed Growers Origination Processing Sales DuPont/Pioneer Bunge An effective development and delivery system for value-added, specialty soy products Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 22: Building an Integrated Chain
Building an Integrated Chain Iowa Illinois Indiana Ohio Missouri Target Regions: Central Iowa and Ohio Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 23: Two Messages
Two Messages • Optimism • Partnership Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Slide 24: Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited
Alberto Weisser, American Seed Trade Association, June 2005 © 2005 Bunge Limited