Ingredion Incorporated · NYSE:INGR
Ingredion — Corn Products International — Q2 2008 Earnings Presentation
20 slides from Ingredion's earnings presentation, Jul 22, 2008
Slide 1: 2008 Second-Quarter Earnings Presentation
2008 Second-Quarter Earnings Presentation Samuel C. Scott Chairman, President and Chief Executive Officer Cheryl K. Beebe Vice President and Chief Financial Officer David A. Prichard Vice President, Investor Relations July 22, 2008 Filed by Corn Products International, Inc. Pursuant to Rule 425 unde
Slide 2: Agenda
Agenda Introduction Forward-Looking Statement 2nd Quarter and First Half Financial Review 2008 Outlook Merger Update Q&A
Slide 3: Forward-Looking Statement
Corn Products International, Inc. Forward-Looking Statement This presentation contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company intends these forward looking
Slide 4: Financial Results
Financial Results For the Quarter Ended June 30, 2008
Slide 5: Summary Income Statement
Summary Income Statement Quarter Ended June 30 ($ millions, except per share amounts) 2008 2007 Change Net sales $1,029 $857 20% Gross profit 187 156 20% Margins 18.1% 18.1% Operating expenses 73 65 13% Operating income 116 91 28% Financing costs 7 13 (47%) Taxes 34.9% 32.8% Net Income 68 51 35% Dil
Slide 6: Net Sales by Geographic Segment
Net Sales by Geographic Segment Quarter Ended June 30 ($ millions) % 2008 2007 Change Net sales North America $609 $534 14% South America 298 218 36% Asia/Africa 122 105 16% Total $1,029 $857 20%
Slide 7: Net Sales Variance Analysis
Net Sales Variance Analysis Quarter Ended June 30 (percents %) NA SA A/A Total Volume (3.7%) (3.8%) (6.2%) (4.0%) Price/product mix 16.2% 23.3% 29.0% 19.5% Change in exchange rate 1.7% 16.7% (6.7%) 4.5% Total variance 14.2% 36.2% 16.1% 20.0%
Slide 8: Operating Income by Geographic Segment
Operating Income by Geographic Segment Quarter Ended June 30 ($ millions) % 2008 2007 Change Operating income North America 86 $ 68 $ 25% South America 36 26 41% Asia/Africa 13 12 9% Corporate (19) (15) 23% Total 116 $ 91 $ 28%
Slide 9: Estimated Sources of Diluted Earnings Per Share
Estimated Sources of Diluted Earnings Per Share Quarter Ended June 30 (dollars per share) Earnings per share - June 30, 2008 $0.90 Non-operating changes: Financing costs 0.05 Effective tax rate (0.03) Minority interest 0.02 (0.01) Shares outstanding 0.01 Changes from operations: Margins 0.17 Foreign
Slide 10: Summary Income Statement Six Months
Summary Income Statement Six Months Ended June 30 ($ millions, except per share amounts) 2008 2007 Change Net sales $1,959 $1,619 21% Gross profit 360 302 19% Margins 18.4% 18.6% Operating expenses 141 123 15% Operating income 223 178 25% Financing costs 14 23 (37%) Taxes 34.2% 33.4% Net Income 133
Slide 11: Cash Flow Highlights
Cash Flow Highlights For the Quarter Ended June 30 ($ millions) 2008 2007 Cash provided by operations: 117 $ 9 $ Net income 68 51 Working capital 30 (69) Depreciation 33 31 Cash invested in the business: (52) $ (36) $ Fixed assets (54) (37) $ Investment in non-consolidated affiliate Cash provided by
Slide 12: Key Metrics
Key Metrics June 30 ($ millions) 2008 2007 Debt to capitalization 22.7% 35.4% Debt to EBITDA (TTM) 1.2 2.1 Operating working capital $566 $338 (excluding short-term debt, cash and def. tax) % of 12 mo. sales 15.2% 11.3% Net debt (debt less cash) $344 $497
Slide 13: 2008 Outlook
2008 Outlook Raising diluted EPS growth expectations to 22 to 29 percent, or $3.15 to $3.35, versus a record $2.59 in 2007, which included a 5-cent gain from holdings in CME Group Prior 2008 EPS guidance was $2.90 to $3.15 Expect solid second half in the range of $1.40 to $1.60 versus $1.27 a year a
Slide 14: Bunge and Corn Products Combination
Bunge and Corn Products Combination Significant opportunity to create shareholder value, enhance opportunities for our employees, and provide benefits to customers and partners Strengthened Americas presence Can expand into new geographies and grow more quickly where we already operate Become subsid
Slide 15: Additional Information Forward-Looking Statement
Additional Information Forward-Looking Statement This material contains "forward-looking statements" regarding the proposed merger between Corn Products International, Inc. and Bunge Limited, and the anticipated consequences and benefits of such transaction. Statements made in the future tense, and
Slide 16: Q & A
Q & A
Slide 17: Appendix
Appendix
Slide 18: Debt to Capitalization
Debt to Capitalization June 30 ($ millions) Debt to Capitalization percentage 2008 2007 Short-term debt $122 $353 * Long-term debt 514 540 Total debt (a) $636 $893 Less: Repayment of $255 million Senior Notes on July 15, 2007 (255) Total debt - proforma (b) $638 ** Deferred income tax liabilities $2
Slide 19: Debt to EBITDA
Debt to EBITDA June 30 ($ millions) Debt to EBITDA ratio 2008 2007 Short-term debt $122 $353 * Long-term debt 514 540 Total debt (a) $636 $893 Less: Repayment of $255 million Senior Notes on July 15, 07 (255) Total debt - proforma (b) $638 ** Net income $230 $171 Add back: Minority interest in earni
Slide 20: Operating Working Capital as a % of Net Sales
Operating Working Capital as a % of Net Sales June 30 ($ millions) Operating Working Capital as a percentage of Net Sales Current assets $1,503 $1,207 Less: Cash and cash equivalents (292) (396) Less: Deferred income tax assets (14) (16) Adjusted current assets $1,197 $795 Current liabilities $781 $
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