Slide 1: Fourth Quarter 2015 Earnings Conference Call
Fourth Quarter 2015 Earnings Conference Call FEBRUARY 11, 2015 1 FOURTH QUARTER 2015 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 Opening Comments
CEO’s Opening Comments 3 FOURTH QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 4: Bunge Limited financial highlights
Bunge Limited financial highlights Quarter Ended Dec 31 Year Ended Dec 31 $ in millions, except EPS data 2015 2014 2015 2014 Total segment EBIT (1) $294 $147 $1,248 $956 Certain gains & charges (2) $(43) ($250) $19 $(250) Total segment EBIT, adjusted (1) $337 $397 $1,229 $1,206 Agribusiness (3) $268
Slide 5: Return on invested capital (ROIC)
Return on invested capital (ROIC) Bunge Limited Trailing 4Q Average Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment 10.0% 8.4% 8.3% 7.4% 6.6% WACC = 7% 5.8% 2013 2014 2015 5 FOURTH QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Year Ended Dec 31 $ in millions 2015 2014 Funds from Operations (1) $1,203 $952 Changes in Operating Assets & Liabilities $(593) $447 Cash provided by Operating Activities $610 $1,399 Bunge has committed credit facilities of ~$5.0 billion, of which ~$4.3 billion we
Slide 7: Right balance: capital allocation priorities
Right balance: capital allocation priorities Balance sheet strength (BBB/Baa2 credit rating) • Investment grade critical • Commodity companies require capital buffer Reinvest in the M&A Return capital business (Capex) to shareholders • Productivity • Filling gaps in Agribusiness • Dividends: ($249m)
Slide 8: 2016 outlook
2016 outlook Agribusiness results to be largely driven by our South American operations Agribusiness - Oilseeds Underlying soy demand expected to remain solid • Feed rations back to a more typical mix which includes higher levels of soymeal • USDA forecasting 7% and 5% global consumption growth for
Slide 9: 2016 outlook
2016 outlook Food & Ingredients Expect improvement from 2015; however, not back to 2014 levels • Brazil economy and weak real will continue to challenge margins and volume • Expect U.S. packaged and India oils to build on good 2015 momentum • ~$50 million of benefits from continued emphasis on opera
Slide 10: Thank you
Thank you 10 FOURTH QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 11: Agribusiness – Oilseeds & Grains definitions
Agribusiness – Oilseeds & Grains definitions Oilseeds Grains • Oilseed processing • Grain origination − Soybean: U.S., South America, Europe, − Grains (corn, wheat, barley, rice) Asia − Oilseeds (soybean, rapeseed/canola, − Rapeseed/Canola: Europe, Canada sunseed) − Sunseed: Eastern Europe, Argentin
Slide 12: Segment volume highlights
Segment volume highlights Quarter Ended Dec 31, Year Ended Dec 31, In thousands of metric tons 2015 2014 2015 2014 Agribusiness 33,999 37,075 134,199 138,690 Oilseeds 15,577 15,525 60,909 59,366 Grains 18,422 21,550 73,290 79,324 Edible Oil Products 1,826 1,795 6,831 6,845 Milling Products 1,063 1,0
Slide 13: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Dec 31 Year Ended Dec 31 2015 2014 2015 2014 Merchandising/Trading Volume (000 mt) 2,526 2,765 8,545 7,176 Milling Volume (mmt of cane) 4.6 4.6 20.2 19.6 Industrial Product Sales Volumes Sugar (000 mt) 430 165 1145 751 Ethanol (000 mt) (1) 588 431 1956 1779
Slide 14: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Total segment EBIT is consolidated net income (loss) attributable to Bunge excluding interest income and expense, income tax expense, income (loss) from discontinued operations, net of tax and noncontrolling interest share of interest and tax. Total segment EBIT
Slide 15: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Below is a reconciliation of total segment EBIT to net income (loss) attributable to Bunge: Quarter Ended Dec 31 Year Ended Dec 31 ($ in millions) 2015 2014 2015 2014 Total segment EBIT $294 $147 $1,248 $956 Interest income 1 16 43 87 Interest expense (71) (122) (258)
Slide 16: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended Year Ended Decem ber 31, Decem ber 31, 2015 2014 2015 2014 Continuing operations: Net i
Slide 17: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Quarters Trailing 4 Quarters Trailing 4 Quarters December 31, December 31, December 31, ($ in m illions) 2015 2014 2013 Operating income before income tax
Slide 18: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains & charges and Sugar & Bioenergy segment EBIT Trailing 4 Quarters Trailing 4 Quarters Trailing 4 Quarters December 31, December 31, December 31 ($ in m illions) 2015 2014 2013 Ope
Slide 19: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Operating income before income tax Below is a reconciliation of Income from continuing operations before income tax to Operating income before income tax: Trailing Trailing Trailing 4 Quarters 4 Quarters 4 Quarters December 31, December 31, December 31, ($ in m illion