Slide 1: Third Quarter 2018 Earnings Conference Call
Third Quarter 2018 Earnings Conference Call October 31, 2018 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: CEO's comments
CEO’s comments Q3 performance: • Oilseeds driven by strong soy crush margins, benefitting from Q2 actions; Grain higher than than expected, primarily due to Brazil origination • Milling had a strong quarter on higher margins in Brazil; Edible Oils impacted by surplus of soy oil due to strong global
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights $ in millions, except EPS data Quarter Ended Nine Months Ended September 30, September 30, US$ in millions, except per share data 2018 2017 2018 2017 Net income (loss) attributable to Bunge $ 365 $ 92 $ 332 $ 220 Net income (loss) per common share from continuing op
Slide 5: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Adjusted Funds From Operations (Adjusted FFO) (1) $ billions $1.5 $1.4 $1.3 #2 $1.1 $0.9 (2) (3) 2014 2015 2016 2017 Q3' 18 TTM (1) Adjusted Funds From Operations is a non US GAAP measure. Reconciliation to the most directly comparable U.S. GAAP measure is provided
Slide 6: Right balance: disciplined capital allocation
Right balance: disciplined capital allocation Balance sheet strength & flexibility • ~$5.2 billion of long term debt (1) (BBB rated) • Committed credit facilities of ~$5.5 billion, of which $4.1 billion was unused and available at 09/30/2018 #2 Reinvest in the Asset portfolio Return capital business
Slide 7: 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% 6.8% 5.7% 5.2% 4.4% Ø As of As of December 31, 2017 September 30, *See appendix for reconciliation 2018 7 THIRD QUARTER
Slide 8: Global Competitiveness Program update - Sep YTD
Global Competitiveness Program update - Sep YTD(1) Increasing savings target by $25 million to $175 million in 2018 vs. 2017 Addressable Baseline $US million 1,044 58 1,054 75 34 996 969 969 31 115 77 854 #2 854 3Q17 YTD Unaddressable 3Q17 YTD GCP 3Q18 YTD Perimeter Notable Other Unaddressable 2Q18
Slide 9: 2018 Outlook
2018 Outlook(1) Expect full-year EBIT of ~$1.2B, exceeding 2017 by ~$600m, with core Agri-Foods ROIC exceeding WACC Agribusiness • Expect full-year EBIT in the upper half of the range of $800 million to $1.0 billion – Oilseeds to be driven by Northern Hemisphere soy and softseed processing – Grains
Slide 10: 2018 Outlook
2018 Outlook(1) Sugar & Bioenergy • Decreasing full-year EBIT to a loss in the range of $20 to $40 million – Lower expected cane crush due to drought and recent heavy rains, increasing unit costs and reducing production – Includes a year-to-date loss of ~$25 million in trading & distribution Fertili
Slide 11: CEO's conclusion
CEO’s conclusion • Q3 2018 was a strong quarter • See continued favorable market conditions through year-end and into 2019 • Strategic refinement of the portfolio sharpens our focus on core businesses where we can deliver #2 the greatest value • Productivity, cost initiatives running ahead of plan;
Slide 12: Q&A
Q&A 12 third Quarter 2017 earnings conference call
Slide 13: 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 14: Segment volume highlights
Segment volume highlights Quarter Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2018 2017 2018 2017 Agribusiness 37,690 37,316 110,893 108,512 Oilseeds 16,233 #2 15,888 47,995 47,976 Grains 21,457 21,428 62,898 60,536 Edible Oil Products 2,332 1,945 6,601 5,681 Mill
Slide 15: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Nine Months Ended September 30, September 30, In thousands of metric tons 2018 2017 2018 2017 Merchandising/Trading Volume (000 mt) 1,421 2,173 3,861 5,565 Milling Volume (mmt of cane) 7.4 8.4 15.4 15.8 #2 Industrial Product Sales Volumes: Sugar (000 mt) 26
Slide 16: 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 is the aggregate of each of our five reportable segments’ earnings before int
Slide 17: Non-GAAP reconciliation notes
Non-GAAP reconciliation notes Below is a reconciliation of Net income attributable to Bunge adjusted (excl. certain gains & charges and discontinued operations) to net income (loss) per common share-diluted: Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions, except per sha
Slide 18: Non-GAAP reconciliation
Non-GAAP reconciliation Below is a reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT, adjusted: Quarter Ended Nine Months Ended September 30, September 30, (US$ in millions) 2018 2017 2018 2017 Net income (loss) attributable to Bunge #2 $ 365 $ 92 $ 332 $ 220 Interest i
Slide 19: 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 September 30, December 31, (US$ in millions) 2018 2017 Total Segment EBIT $ 722 $ 436 EBIT attributable to noncontrolling interest 25 19 Interest income
Slide 20: 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 September 30, December 31, (US$ in millions) 2018 2017 Total Segment EBIT $ 722 $ 436 EBIT attributable to noncontro
Slide 21: 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) September 30, 2018 Decembe
Slide 22: Non-GAAP reconciliation
Non-GAAP reconciliation Cash provided by (used for) operating activities to Adjusted FFO reconciliation 2014 (1) 2015 2016 2017 Q3'18 TTM (2) Cash provided by (used for) operating activities 1,399 610 1,904 1,006 (245) Foreign exchange (loss) gain on net debt 215 213 (80) (21) (127) Working capital
Slide 23: third Quarter 2017 earnings conference call
23 third Quarter 2017 earnings conference call