Slide 1: First Quarter 2018 Earnings Conference Call
First Quarter 2018 Earnings Conference Call May 2, 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 Q1 performance: excluding mark-to-market, off to a strong start to the year • Dramatic yoy improvement in soy crush environment; Agribusiness team managed volatile markets well, positioning company for a strong year • Food & Ingredients - results better than expected and higher yoy in
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights $ in millions, except EPS data Quarter Ended March 31, US$ in millions, except per share data 2018 2017 Net income (loss) attributable to Bunge $ (21) $ 47 Net income (loss) per common share from continuing operations-diluted $ (0.20) $ 0.31 Net income (loss) per co
Slide 5: 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 $0.9 $0.8 (2) (3) 2014 2015 2016 2017 Q1' 18 TTM (1) Adjusted Funds From Operations is a non US GAAP measure. Reconciliation to the most directly comparable U.S. GAAP measure is provided
Slide 6: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$5.5 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5 billion, of which $3.3 billion was unused and available at March 31, 2018 #2 Reinvest in the Asset portfolio Return capital busine
Slide 7: Return on invested capital (ROIC)
Return on invested capital (ROIC) Trailing 4Q Average* Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment #2 WACC = 7% 5.2% 4.4% 4.4% 3.8% Ø As of As of December 31, 2017 March 31, 2018 *See appendix for reconciliation 7 FIRST QUARTER 201
Slide 8: Global Competitiveness Program update
Global Competitiveness Program update(1) Program Targets ($M) Savings Addressable Year Target SG&A Target Savings target of $100 million in 2018 vs. 2017 Addressable Baseline Baseline 1,350 2017 15 1,335 2018 100 1,250 2019 180 1,170 $US million 2020 250 1,100 378 38 340 340 22 344 41 9 #2 322 14 29
Slide 9: 2018 Outlook
2018 Outlook(1) Expect all segments to show yoy improvement Agribusiness • Increasing full-year EBIT range to $800 million to $1.0 billion – Demand remains solid – Soy crush margins should stay strong into next year ▪ Soymeal competitively priced vs competing proteins ▪ Argentine processors expected
Slide 10: 2018 Outlook
2018 Outlook(1) Expect all segments to show yoy improvement Sugar & Bioenergy • Decreasing full-year EBIT to $40 to $60 million – Reflects lower sugar prices on portion of sugar production that is not hedged and favorable Brazil ethanol outlook – Assumes normal weather – Results expected to be seaso
Slide 11: CEO's conclusion
CEO’s conclusion • It is times like these when the value of our global footprint and capabilities are clearly demonstrated • Shows how relatively small crop production shortfalls can shift the delicate balance of supply and demand • 2017 was an unusually challenging year; we expect the improved cond
Slide 12: Q&A
Q&A 12 third Quarter 2017 earnings conference call
Slide 13: 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 14: Segment volume highlights
Segment volume highlights Quarter Ended March 31, In thousands of metric tons 2018 2017 Agribusiness 35,805 35,023 Oilseeds #2 15,112 15.087 Grains 20,693 19,936 Edible Oil Products 2,008 1,789 Milling Products 1,135 1,074 Sugar & Bioenergy 1,447 1,847 Fertilizer 172 162 14 FIRST QUARTER 2018 EARNIN
Slide 15: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Three Months Ended March 31, In thousands of metric tons 2018 2017 Merchandising/Trading Volume (000 mt) 1,226 1,607 Milling Volume (mmt of cane) 0.5 0.5 #2 Industrial Product Sales Volumes: Sugar (000 mt) 26 87 Ethanol (000 mt) (1) 213 227 Cogeneration Sales (K MWh) 24
Slide 16: 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 17: 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 March 31, (US$ in millions, except per share data) 2018 2017 Net Income (loss)
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 March 31, (US$ in millions) 2018 2017 Net income (loss) attributable to Bunge #2 $ (21) $ 47 Interest income (8) (12) Interest expense 70 65 Income tax expense
Slide 19: 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 March 31, December 31, (US$ in millions) 2018 2017 Total Segment EBIT $ 364 $ 436 EBIT attributable to noncontrolling interest 20 19 Interest income 34 3
Slide 20: 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 March 31, December 31, (US$ in millions) 2018 2017 Total Segment EBIT $ 364 $ 436 EBIT attributable to noncontrollin
Slide 21: 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) March 31, 2018 December 31
Slide 22: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2014 (1) 2015 2016 2017 Q1'18 TTM (2) Cash provided by (used for) operating activities 1,399 610 1,904 1,006 67 Foreign exchange (loss) gain on net debt 215 213 (80) (21) (40) Working capital chan
Slide 23: third Quarter 2017 earnings conference call
23 third Quarter 2017 earnings conference call