Slide 1: Fourth Quarter 2018 Earnings Conference Call
Fourth Quarter 2018 Earnings Conference Call February 21, 2019 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: Speakers
Speakers #2 Kathi Hyle Greg Heckman Thom Boehlert Board Chair Acting CEO CFO 3 FOURTH QUARTER 2018 EARNINGS CONFERENCE CALL
Slide 4: Board Chair's update
Board Chair's update • Enhanced leadership team with new hires and roles • Appointed Acting CEO • Established Strategic Review Committee • Refreshed Board and Committee Chairs #2 4 FOURTH QUARTER 2018 EARNINGS CONFERENCE CALL
Slide 5: Acting CEO's recap and look ahead
Acting CEO's recap and look ahead • Initial observations: First 30 days • 2018 full-year recap • Immediate priorities – Drive operating performance – Optimize portfolio #2 – Improve capital allocation – Strengthen financial discipline • New guidance policy and 2019 outlook 5 FOURTH QUARTER 2018 EARN
Slide 6: 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 2018 2017 2018 2017 Net income (loss) attributable to Bunge $ (65) $ (60) $ 267 $ 160 Net income (loss) per common share from continuing operatio
Slide 7: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds from Operations (FFO)(1) increased $205 million vs prior year $US billions $1.5 $1.4 $1.3 #2 $1.1 $0.9 2014 2015 2016 2017 2018 (1) Adjusted Funds From Operations is a non U.S. GAAP financial measure. Reconciliation to the most directly comparable U.
Slide 8: Bunge Limited balance sheet highlights
Bunge Limited balance sheet highlights • Strong, flexible balance sheet • At year-end 2018, ~90% of Net Debt was used to finance Readily Marketable Inventories (RMI) $US billions $5.0 #2 $4.1 $4.5 $3.9 Net Debt RMI Net Debt RMI As of As of Dec 31, 2017 Dec 31, 2018 8 FOURTH QUARTER 2018 EARNINGS CON
Slide 9: Right balance: Disciplined capital allocation
Right balance: Disciplined capital allocation Balance sheet strength & flexibility • Committed credit facilities of ~$5 billion, of which ~$4.5 billion was unused and available at 12/31/2018 #2 Reinvest in the Asset portfolio Return capital business (Capex) management to shareholders • Productivity
Slide 10: 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% 6.5% 5.2% 6.5% 5.0% 4.4% Ø As of As of Dec 31, 2017 Dec 31, 2018 *See appendix for reconciliation 10 FOURTH QUARTER 201
Slide 11: Global Competitiveness Program savings ahead of plan
Global Competitiveness Program savings ahead of plan(1) Savings of $200 million, exceeding original 2018 target by $100 million $US million 1,450 1,423 100 107 1,350 1,350 9 1,307 1,316 #2 200 106 1,201 51 1,150 1,150 1,150 2017 Unaddressable 2017 Savings 2017 Actual Adj. Notable Perimeter Other Una
Slide 12: 2019 full-year outlook
2019 full-year outlook Beginning in 2019, the Company is changing its guidance approach. Bunge will provide directional guidance for the company instead of individual segment EBIT ranges as it has previously. Agribusiness • Based on the following factors, results would be expected to be down vs 2018
Slide 13: 2019 full-year outlook
2019 full-year outlook Sugar & Bioenergy • Based on the following factors, results would be expected to be approximately breakeven, up significantly vs 2018 – Normal weather in Brazil and current forward sugar and ethanol price curves – Cane crush of ~19mmt; ~60% of sugar production hedged – Trading
Slide 14: Transitional year, repositioning work underway
Transitional year, repositioning work underway • Bunge has a solid foundation • Immediate priorities to drive performance are clear • Focused on creating shareholder value #2 14 FOURTH QUARTER 2018 EARNINGS CONFERENCE CALL
Slide 15: Q&A
Q&A 15 third Quarter 2017 earnings conference call
Slide 16: 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 17: Segment volume highlights
Segment volume highlights Twelve months ended Quarter Ended December 31, December 31, In thousands of metric tons 2018 2017 2018 2017 Agribusiness 35,416 34,343 146,309 142,855 Oilseeds 17,160 15,938 65,155 63,914 Grains 18,256 #2 18,405 81,154 78,941 Edible Oil Products 2,423 2,050 9,024 7,731 Mill
Slide 18: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Twelve months ended December 31, December 31, 2018 2017 2018 2017 Merchandising/Trading Volume (000 mt) 874 2,022 4,674 7,587 #2 Milling Volume (mmt of cane) 3.5 4.0 18.9 19.8 Industrial Product Sales Volumes: Sugar (000 mt) 204 336 695 1,027 Ethanol (000 m
Slide 19: 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, excludes EBIT attributable to noncontrolling interest and is the aggregate o
Slide 20: 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 2018 2017 2018 2017 Net income (loss) attributable to Bunge $ (65) $ (60) $ 267 $ 160 Interest income
Slide 21: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of Net income attributable to Bunge to Net income (loss), adjusted (excluding certain gains & charges and discontinued operations): Quarter Ended Year Ended December 31, December 31, (US$ in millions, except per share data) 2018 2017 2018 2017
Slide 22: 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) 2018 2017 Total Segment EBIT $ 737 $ 436 EBIT attributable to noncontrolling interest 27 19 Interest income 3
Slide 23: 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) 2018 2017 Total Segment EBIT $ 737 $ 436 EBIT attributable to noncontrol
Slide 24: 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, 2018 December
Slide 25: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2014 (1) 2015 2016 (2) 2017 (2) 2018 (2) Cash provided by (used for) operating activities 1,399 610 446 (1,975) (1,264) Foreign exchange (loss) gain on net debt 215 213 (80) (21) (139) Working cap