Bunge Limited · NYSE:BG
Bunge — Q4 2008 Earnings Presentation
19 slides from Bunge's earnings presentation, Feb 5, 2009
Slide 1: Fourth Quarter 2008 Earnings Conference Call
Fourth Quarter 2008 Earnings Conference Call February 5, 2009
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: Bunge Limited Results
Bunge Limited Results Quarter Ended December 31 $ in millions Quarter Ended Year Ended excl. volume & EPS December 31, December 31, 2008 2007 %-Δ 2008 2007 %-Δ Volume (000 mt) 35,961 34,086 6% 138,463 136,955 1% Total segment EBIT (1) $(404) $374 (208)% $1,363 $1,208 13% Net (loss) income $(210) $24
Slide 4: Effective Tax Rate
Bunge Limited Effective Tax Rate Net Income (Loss) From Pre-Tax Operations Effective $ in millions Earnings Tax After Tax Tax Rate YTD Actual Sept. 30, 2008 $1,938 $(459) $1,479 24% Quarter ended Dec. 31, 2008 $(401) $214 $(187) NA Year ended Dec. 31, 2008 $1,537 $(245) $1, 292 16% 4
Slide 5: Segment Results
Segment Results Quarter Ended December 31 $ in millions Volumes EBIT 2008 2007 %-Δ 2008 2007 %-Δ Agribusiness 31,160 28,104 11% $(86) $330 (126)% Fertilizer 2,386 3,548 (33)% $(289) $52 (656)% Food Products (1) 2,415 2, 434 (1)% $(29) $(8) NA (1) Includes edible oil products and milling products seg
Slide 6: Balance Sheet Summary
Bunge Limited Balance Sheet Summary $ in millions Dec. 31, Dec. 31, 2008 2007 Operating Working Capital (1) $4,635 $5,810 - Inventories $5,653 $5,924 • Readily Marketable Inventories $2,619 $3,358 Cash Cycle Days (2) 47 50 Total Debt $3,583 $4,547 Shareholders’ Equity $7,436 $7,945 Debt to Capitaliz
Slide 7: Cash Flow Summary
Bunge Limited Cash Flow Summary $ in millions Quarter Ended Year Ended December 31, December 31, 2008 2007 2008 2007 Funds from Operations $88 $402 $2,090 $1,152 (before working capital changes) Working Capital Changes $728 $(171) $453 $(1,563) Cash Flow from Operations $816 $231 $2,543 $(411) Capit
Slide 8: Capital Allocation
Bunge Limited Capital Allocation 2003 2004 2005 2006 2007 2008 Total Funds from operations (1) $482 $759 $550 $565 $1,152 $2,090 $5,598 Change in working capital $(523) $43 $(168) $(854) $(1,563) $453 $(2,612) Change in RMIs (2) $(351) $604 $(270) $(791) $(1,033) $739 Cash flow from operations $(41)
Slide 9: Liquidity Position
Bunge Limited Liquidity Position Bunge has committed revolving credit facilities of $3.5 billion (US$ million) Facility Amount Drawn Facility Maturity Size 31-Dec-07 30-Jun-08 30-Sep-08 31-Dec-08 CP Program (Fully Backstopped) (1) Jun. 2012 $600 $153 $66 $0 $0 2010 Revolving Credit Facility Jan. 201
Slide 10: 2009 Outlook
Bunge Limited 2009 Outlook Confident in a solid year, though results to be weighted toward the second half of the year • Soybean meal demand should improve throughout the year • Farm economics are generally good and will spur fertilizer purchases • Global stocks-to-use ratios of agricultural commodi
Slide 11: 2009 Full Year Guidance
Bunge Limited 2009 Full Year Guidance $6.90 to $7.60 per share • This fully diluted per share guidance is based on an estimated weighted average of 138 million shares outstanding, which includes assumed dilution relating to our convertible preference shares • Depreciation, Depletion and Amortization
Slide 12: Return on Invested Capital (ROIC)
Bunge Limited Return on Invested Capital (ROIC) ROIC is an important performance measure Annual target is to earn a minimum of 2 points over WACC – Company Baseline ROIC has exceeded cost of capital (WACC) every year since IPO In 2009 upper end of guidance range is 2 points over WACC • Current WACC
Slide 13: NGE
ll) NGE 13
Slide 14: Backup: Non-GAAP Reconciliation
Backup: Non-GAAP Reconciliation Below is a reconciliation of total segment EBIT to net (loss) income: Quarter Ended Year Ended December 31, December 31, ($ in millions) 2008 2007 2008 2007 Total segment EBIT $(404) $374 $1, 363 $1,208 Interest income 55 54 214 166 Interest expense (76) (102) (361) (
Slide 15: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Total segment earnings before interest and tax Total segment earnings before interest and tax (“EBIT”) is Bunge’s consolidated net income that excludes interest income and expense and income tax attributable to each segment. Total segment EBIT is a non-GAAP fina
Slide 16: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Return on Invested Capital Bunge calculates Return on Invested Capital (ROIC) as net income plus/minus minority interest, income tax (benefit) expense, discontinued operations-loss/gain and interest expense times the effective tax rate divided by the average tot
Slide 17: Backup: Non-GAAP Reconciliation
Backup: Non-GAAP Reconciliation Below is a reconciliation of total long-term and short-term debt to net financial debt and to net financial debt less readily marketable inventories: December 31, December 31, ($ in millions) 2008 2007 Short-term debt $473 $590 Long-term debt, including current portio
Slide 18: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Net Financial Debt Net financial debt is the sum of short-term debt, current maturities of long-term debt and long-term debt, less cash and cash equivalents and marketable securities. Net financial debt is presented because management believes it represents a me
Slide 19: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes EBITDA as used in this presentation is net income plus/minus equity in earnings of affiliates, other income (expense) – net, minority interest, depreciation and amortization, income tax expense, interest expense and interest income. EBITDA (as defined above) is