Slide 1: Fourth Quarter 2016 Earnings Conference Call
Fourth Quarter 2016 Earnings Conference Call FEBRUARY 15, 2017 1 FOURTH QUARTER 2016 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 are subject to various risks and uncertainties. Bunge has provided add
Slide 3: CEO's comments
CEO’s comments A solid Q4 to end a challenging year • Agribusiness finished the year on a positive note • Significant improvement in Food & Ingredients • Record results in Sugar & Bioenergy • Agribusiness-Foods ROIC continues to exceed WACC • Strong cash generation 3 FOURTH QUARTER 2016 EARNINGS CON
Slide 4: CEO's comments
CEO’s comments We made excellent progress on our strategic priorities in 2016 Right Winning Best in Balance Footprint Class Returns-driven capital Complete footprint Significant cost savings and operating efficiencies allocation New Orleans port terminal Repurchased $200m of shares upgrade
Slide 5: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Dec 31, Year Ended Dec 31, $ in millions, except EPS data 2016 2015 2016 2015 Net income attributable to Bunge $271 $203 $745 $791 Net income (loss) per common share from $1.83 $1.31 $5.07 $4.84 continuing operations – diluted (1) Net income (loss) per
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1,2) $ billions 1.5 1.4 1.3 1.2 1.2 2012 2013 2014 2015 2016 (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. Ad
Slide 7: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$4 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5 billion, all of which was unused and available at 12/31/2016 Reinvest in the Asset portfolio Return capital business (Capex) managem
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 10.0% 8.3% 8.6% 7.4% WACC = 7% As of As of Dec 31, 2015 Dec 31, 2016 *See appendix for reconciliation 8 FOURTH QUARTER 2016 EARNINGS
Slide 9: 2017 Outlook
2017 Outlook Agribusiness Expect EBIT to return to historical range of $895 to $1,050 million vs 2016 adjusted EBIT of $782 million • South America expecting record crops, which aligns well with our footprint • Brazil farmers have only priced relatively small percentages of 2017 soy and corn product
Slide 10: 2017 Outlook
2017 Outlook Sugar & Bioenergy Expect EBIT of $100 to $120 million vs 2016 adjusted EBIT of $51 million • Have hedged much of our 2017 sugar production at higher year-over-year prices • Price premium of sugar vs Brazilian ethanol should keep ethanol supply in balance with demand • Our cost structure
Slide 11: Thank you
Thank you 11 FOURTH QUARTER 2016 EARNINGS CONFERENCE CALL
Slide 12: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, Europe, − Grains (corn, wheat, barley, rice) Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 13: Segment volume highlights
Segment volume highlights Quarter Ended Dec 31, Year Ended Dec 31, In thousands of metric tons 2016 2015 2016 2015 Agribusiness 32,829 33,936 134,605 134,136 Oilseeds 16,011 15,577 60,144 60,910 Grains 16,818 18,359 74,461 73,227 Edible Oil Products 1,883 1,826 6,989 6,831 Milling Products 1,103 1,0
Slide 14: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Dec 31, Year Ended Dec 31, 2016 2015 2016 2015 Merchandising/Trading Volume (000 mt) 2,214 2,476 7,386 8,496 Milling Volume (mmt of cane) 4.3 4.6 19.4 20.2 Industrial Product Sales Volumes: Sugar (000 mt) 313 430 930 1145 Ethanol (000 mt) (1) 503 588 1,687
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations Non-GAAP measures Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) and Total Segment EBIT, adjusted to evaluate Bunge’s operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments’ earnings before inter
Slide 16: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended Year Ended Dec 31, Dec 31, ($ in millions) 2016 2015 2016 2015 Net income attributable to Bunge $271 $203 $745 $791 Interest income (14) (1) (51) (43) Interest expense
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share- diluted: Quarter Ended Year Ended December 31, December 31, 2016 2015 2016 2015 Continuing operations: Net income (lo
Slide 18: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average Decem ber 31, Decem ber 31, (US$ in m illions) 2016 2015 Total Segm ent EBIT $ 1,143 $ 1,248 EBIT attributable to noncon
Slide 19: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains & charges and Sugar and Bioenergy segment EBIT Trailing 4 Trailing 4 Quarter Average Quarter Average Decem ber 31, Decem ber 31, (US$ in m illions) 2016 2015 Total Segm ent EBIT $ 1,143
Slide 20: 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 Quarter Average Quarter Average (US$ in m illions) Decem ber 31, 2016 Decem ber
Slide 21: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2012 2013 2014 (1) 2015 2016 Cash provided by (used for) operating (457) 2,225 1,399 610 1,904 activities Foreign exchange (loss) gain 74 48 215 213 (80) on debt Working capital changes 1,568 (1,0