Slide 1: First Quarter 2014 Earnings Conference Call
First Quarter 2014 Earnings Conference Call MAY 1, 2014 1 FIRST QUARTER 2014 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: Bunge Limited Earnings Highlights
Bunge Limited Earnings Highlights Quarter Ended Mar 31 $ in millions, except EPS data 2014 2013 Total segment EBIT (1) $75 $323 Certain gains & charges (2) - $63 Total segment EBIT, adjusted (1) $75 $260 Agribusiness $79 $175 Sugar & Bioenergy ($64) $23 Food & Ingredients (3) $54 $59 Fertilizer $6 $
Slide 4: Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC) Trailing 4Q Average 7.5% 7.1% WACC = 7% 5.8% 5.1% As of As of Dec 31, 2013 Mar 31, 2014 Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes sugar & bioenergy segment 4 FIRST QUARTER 2014 EARNINGS CONFERENCE CALL
Slide 5: Bunge Limited Cash Flow Highlights
Bunge Limited Cash Flow Highlights Quarter Ended Mar 31 $ in millions 2014 2013 Funds from Operations (1) $151 $296 Changes in Operating Assets & Liabilities $(1,208) $(193) Cash Provided by (Used for) Operating Activities $(1,057) $103 Capital Expenditures $(165) $(224) • Bunge has committed credit
Slide 6: Outlook
Outlook Targeting combined Agribusiness-Foods ROIC at WACC + 1.5 points Agribusiness Demand expected to remain strong • Livestock economics strong in most regions • More inclusion of corn in feed formulations supportive of meal demand • Protein meal inventory pipelines still relatively lean • Large
Slide 7: Outlook
Outlook Sugar & Bioenergy Expect full-year EBIT to be break-even and heavily weighted to Q3/Q4 Managing the segment to be free cash flow neutral Continue to improve cost and productivity in milling operations Expect to have sufficient cane to crush at capacity Food & Ingredients Expect results to pr
Slide 8: Thank you
Thank you 8 FIRST QUARTER 2014 EARNINGS CONFERENCE CALL
Slide 9: Capital Allocation Framework
Capital Allocation Framework 9 FIRST QUARTER 2014 EARNINGS CONFERENCE CALL
Slide 10: Bunge's Capital Allocation Priorities
Bunge’s Capital Allocation Priorities Balance Sheet Strength (Target BBB credit rating) Investment grade critical Commodity companies require capital buffer Reinvest in the M&A Return Capital to Business (Capex) Shareholders Filling gaps in agribusiness Maintenance Expanding food & Dividends Product
Slide 11: Reinvest in the Business
Reinvest in the Business Capex Priorities 2014e capex of ~$900 million is Priority ~$900M down ~$100m vs. 2013 Maintenance & 1 Compliance Total spend starts with • Safety maintenance – what is needed to • Environmental keep operations safely and • Quality ~40% efficiently running • IT • Sugarcane re
Slide 12: Capex by Segment and Geography
Capex by Segment and Geography 2012: ~$1.1B 2014e: ~$900M 3% 9% 25% 19% 34% Total investment 55% by segment 17% 38% Sugar & Bioenergy Agribusiness Food & Ingredients Fertilizer 2012: ~$1.1B 2014e: ~$900M 4% 6% 20% 14% 25% Total investment 16% by geography 70% 45% South America North America Europe A
Slide 13: Representation of Major Investments
Representation of Major Investments Type Projects starting up in 2014 Oilseed processing/refining facilities – Altona, Canada Growth/ Productivity Port terminal – Terfron, Brazil Growth Port infrastructure – Paranagua, Brazil Productivity Port grain facility – Bunbury, Australia Growth Under constru
Slide 14: Returning Capital to Shareholders
Returning Capital to Shareholders US$ per share of common stock 1.17 1.06 0.98 0.90 Dividends have increased every year 0.82 0.74 since 2001 IPO, averaging 11% growth 0.63 0.67 0.56 0.48 Maintain increases in line with 0.385 0.42 historical average 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 15: Summary
Summary Maintaining a strong balance sheet is top priority Dividends and share repurchases will be a component of overall value creation framework to maximize total shareholder returns M&A will continue to be a part of our growth strategy – agribusiness and foods are priorities Level of Capex starts
Slide 16: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Mar 31 2014 2013 Merchandising/Trading Volume (000 mt) 1,408 1,897 Milling Volume (mmt of cane) 0.5 0.2 Industrial Product Sales Volumes Sugar (000 mt) 122 115 Ethanol (000 mt) (1) 410 292 Cogeneration Sales (K MWh) 26 5 ATR (kg/mt of cane) 109 106 1. Refle
Slide 17: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Total segment earnings before interest and tax (EBIT) Total segment EBIT is consolidated net income attributable to Bunge excluding interest income and expense and income tax attributable to each segment. Total segment EBIT is a non-GAAP financial measure and is
Slide 18: 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 Mar 31 ($ in millions) 2014 2013 Total segment EBIT $75 $323 Interest income $19 $9 Interest expense $(79) $(76) Income tax expense $(30) $(73) Income (loss) from
Slide 19: Backup: Non-GAAP Reconciliation
Backup: Non-GAAP Reconciliation Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended March 31, 2014 2013 Continuing operations: Net income (loss) per common share from continuing
Slide 20: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Return on Invested Capital: Bunge Limited continuing operations excl. notables Trailing 4 Quarter Average March 31, December 31, March 31, March 31, (US$ in m illions) 2014 2013 2013 2014 Operating income before income tax $ 94 $ 1,341 $ 269 $ 1,166 Effective ta
Slide 21: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Return on Invested Capital: Bunge Limited continuing operations excl. notables and Sugar and Bioenergy segment EBIT Trailing 4 Quarter Average March 31, December 31, March 31, March 31, (US$ in m illions) 2014 2013 2013 2014 Operating income before income tax $
Slide 22: Backup: Non-GAAP Reconciliation
Backup: Non-GAAP Reconciliation Operating income before income tax Below is a reconciliation of Income (loss) from continuing operations before income tax to Operating income before income tax: March 31, December 31, March 31, (US$ in m illions) 2014 2013 2013 Income (loss) from continuing operation