Slide 1: Third Quarter 2015 Earnings Conference Call
Third Quarter 2015 Earnings Conference Call OCTOBER 29, 2015 1 THIRD 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 THIRD QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 4: Bunge Limited financial highlights
Bunge Limited financial highlights Quarter Ended Sep 30 Nine Months Ended Sep 30 $ in millions, except EPS data 2015 2014 2015 2014 Total segment EBIT (1) $414 $316 $954 $809 Certain gains & charges (2) $47 - $62 - Total segment EBIT, adjusted (1) $367 $316 $892 $809 Agribusiness (3) $322 $186 $786
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 10.3% 8.4% 8.3% 6.6% WACC = 7% Dec 31, 2014 Sep 30, 2015 5 THIRD QUARTER 2015 EARNINGS CONFERENCE CALL
Slide 6: Bunge Limited cash flow highlights
Bunge Limited cash flow highlights Nine Months Ended Sep 30 $ in millions 2015 2014 Funds from Operations (1) $745 $908 Changes in Operating Assets & Liabilities $(112) $208 Cash provided by (used for) Operating $633 $1,116 Activities Bunge has committed credit facilities of ~$5.0 billion, of which
Slide 7: Right balance: capital allocation priorities
Right balance: 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 business (Capex) to shareholders • Productivity • Filling gaps in Agribusiness • Dividends: ($178
Slide 8: 2015 outlook
2015 outlook Expect FY15 ROIC of core Agribusiness-Foods of ~10%; 3 pts. over WACC Agribusiness: expect full year EBIT in excess of $1B Oilseeds: Underlying soy demand expected to remain solid – Poultry and hog herds expanding in most regions – Feed rations back to a more typical mix which include
Slide 9: 2015 outlook
2015 outlook Expect FY15 ROIC of core Agribusiness-Foods of ~10%; 3 pts. over WACC Food & Ingredients Expect improvement from Q3; however, below Q4 2014 Brazil economy and rapid currency devaluation will continue to challenge margins and volume Continued emphasis on operational efficiency and su
Slide 10: Thank you
Thank you 10 THIRD 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 Sep 30, Nine Months Ended Sep 30, In thousands of metric tons 2015 2014 2015 2014 Agribusiness 36,154 34,937 100,200 101,615 Oilseeds 15,386 13,971 45,333 43,841 Grains 20,768 20,966 54,867 57,774 Edible Oil Products 1,733 1,721 5,005 5,050 Milling Products 1,
Slide 13: Sugar & Bioenergy Highlights
Sugar & Bioenergy Highlights Quarter Ended Sep 30 Nine Months Ended Sep 30 2015 2014 2015 2014 Merchandising/Trading Volume (000 mt) 2,356 1,485 6,019 4,412 Milling Volume (mmt of cane) 7.9 7.4 15.6 15.0 Industrial Product Sales Volumes Sugar (000 mt) 290 272 716 586 Ethanol (000 mt) (1) 462 454 1,3
Slide 14: 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 (loss) attributable to Bunge excluding interest income and expense, income tax expense, income (loss) from discontinued operations, net of tax and noncontrolling
Slide 15: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Below is a reconciliation of total segment EBIT to net income attributable to Bunge: Quarter Ended Sep 30 Nine Months Ended Sep 30 ($ in millions) 2015 2014 2015 2014 Total segment EBIT $414 $316 $954 $809 Interest income 18 19 42 71 Interest expense (77) (70) (187) (
Slide 16: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Continuing operations
Slide 17: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Quarters Trailing 4 Quarters September 30, December 31, ($ in m illions) 2015 2014 Operating income before income tax $ 1,377 $ 1,331 Effective tax rate (1
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 September 30, December 31, ($ in m illions) 2015 2014 Operating income before income tax $ 1,
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 4 Quarters 4 Quarters September 30, December 31, ($ in m illions) 2015 2014 Income from continu