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Citis 2009 Food Fest -1stAnnual Food Manufacturing Conference
December 3, 2009
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Forward Looking Statements
Todays presentation includes forward-looking statements thatreflect Bunges 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 additional information in its reports on filewiththe SEC concerning factors that could cause actual results to differmaterially from those contained in this presentation, and encourages
you to review these factors.
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We Are a Leading Global Agribusiness & Food
CompanyKEY FACTS
Employees: 25,000+
Facilities: 400+
Countries of Operations: 30+
2008 Net Income: $1.06 bill ion
2008 Total Volume: 138 mmt
NORMALIZED SEGMENT EBIT
Fertilizer
35%
Food &
Ingredients20% Agribusiness45%
A leader in oilseed processing A leader in global grain and
oilseed marketing
Originate commoditiesin worlds primary growingregions and distribute themin over 75 countries
South Americas largestfertilizer producer
Only completely verticallyintegrated fertilizer companyin Brazil
Direct access to 4 of Brazils5 primary phosphate mines
Leading producer of consumerbottled oil brands in South
America, Europe and Asia
Leading supplier to food servicecompanies and food processorsin North America
Leading corn and wheat millerin the Americas
Fertilizer AgribusinessFood & Ingredients
3
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Balanced Global Asset Network
4Fertilizer Agribusiness Food & Ingredients
World needs to double food product ion by 2050 to meet needs of larger, wealthier population
- U.N. Food and Agriculture Organization
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Our Winning Approach
5
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Growing Core Businesses
Secure reliable access to larger raw material supply
Build distribution business in the Americas
6
Fertilizer
Optimize oilseed value chains and build share in growth markets
Increase share of world grain trade
Develop energy expertise and biofuels marketing capability
Agribusiness
Strengthen edible oils business, offer new value-added oil productsand enter new geographies
Maintain strong positions in wheat and corn dry milling
Food & Ingredients
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Expanding Local Mines to Meet Growth
7
Key Facts
Leading presence in fast growing
fertilizer marketLocal mining production has logistical costadvantage of $40-$60/MT
Brazilian Retail Ferti lizer Market Volumes
(mmt)
Source: ANDA
CAGR
:6%
Phosphate Rock Production Capacity
Araxa, Brazil
4.90.67 0.34 0.15
2.0 8.1
Current Araxamineexpansion
FosfertilTapira &Catalaominesexpansion
Ani tpo lismineopening
FosfertilSalitre mineopening
Future
(mmt/year)
5
7
9
11
13
15
17
19
21
23
25
1 99 0 1 99 2 1 99 4 1 99 6 1 99 8 2 00 0 2 00 2 2 00 4 2 00 6 2 00 8
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Connecting Our Agribusiness Network
to Promising Markets
8
Port of Longview, WA
Deep water export grain terminal on Columbia River
Second largest export corridor in NA
Most efficient route for moving grain to Asian markets
Joint-venture with ITOCHU and STX Pan Ocean
Annual capacity: 8 million metric tons, capable of
handling grain, oilseeds and protein meals
Project detail
Investment: approximately $200 million
Timing: completion expected by 2011 fall harvest
Architectural
rendering
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Benefits of Value Added Food Products
9
Bunges large oilseed processingbusiness supports value-addedmarket share
Scale
Co-located facilities reduceproduction and logistics costs
Control of input supply allows bettervisibility of raw material costs
Efficiency & Risk Management
Farm to consumer traceabilityimproves confidence
Food Safety
0%
20%
40%
60%
80%
100%
Oils
P
ackaging
In
gredients
M
anu
facturing
SG&A
Di
stribution
Total
Margarine: Generalized Unit Cost Structure
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Leveraging Our Expertise
in New Product Areas
10
Origin
ation
Logistics
RiskManagement
Proce
ssing
Corn Dry and Wheat Mill ing
Corn Wet Milling
Oilseeds & Grains
Sugar
Fertilizer
Palm
Marketing&
Distribution
Expertise Current ValueChains
Future ValueChains
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Sugar and Sugar-Based Ethanol
11
Sugarcane Market
Strong global growth
Fragmented market with consolidationopportunities
Key product for Bunge customers
Brazil is the low cost sugarcane producer
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Building a Network of Sugarcane Assets
MT BADF
TO
MS
PR
MG
SP RJ
ES
Paranagu
Santos
Vitria
Santa
Juliana
Monte
Verde
Pedro
Afonso
Sugarcane Mills
0
2
4
6
8
10
12
14
2009e 2010 2011 2012 2013 2014
3
13Millionmetrictonssugarcane
Santa Juliana MG Brazil
Monte Verde MS Brazil
Pedro Afonso TO Brazil
Milling Capacity
12
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Global Network Drives
Efficiency & Service
13
Key Facts
Market access
Flexibility and reliability
Efficient logistics
Destrehan, Louisiana
Bunge Spain & Italy
Latin America, CaribbeanAsia, Mid-East
Elevator Port Terminal
Oilseed Processing Plant Customer
Bunge China
South America
Bunge North America Expor t Flow
30%
30%
40%
EuropeMiddle East
AfricaLatin America
Asia
U.S. Elevator Network
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Integration in Key Areas
Unlocks Greater Value
14
Analy tics
Product Lines
Logistics
Risk
ManagementSAP
HRFinanceCapital
Al locationStrategy
Food & Ingredients
FoodProcessing
Retail andConsumer
Agribusiness
OriginationOilseed &SugarcaneProcessing
Fertilizer
Nutrients
RetailProductsandServices
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15
Financial Performance
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Strong Track Record of Financial Performance
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(1) Total segment EBIT is a non-GAAP financial measure. A reconciliation to the most directly comparable GAAP measure is included
elsewhere in this presentation.(2) Excludes $111 million gain on the sale of the Brazilian soy ingredients business.
Net IncomeUS$ millions
(2)
VolumesMillions of metric tons
Total Segment EBITUS$ millions
(2)
(1)
1,064
CAGR:10% CAGR:26%
CAGR:34
%
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Consistently Generating Excess Returns
17
ROIC is an important performance measure
ROIC has exceeded cost of capital (WACC) every year since IPO
Current WACC is approximately 9% vs. 8.5% in past years
Note: ROIC is defined as the sum of income from continuing operations before income tax and minority interest plus interest expense timesthe effective tax rate divided by the average total capitalization. ROIC is a non-GAAP financial measure. A reconciliation to the mostdirectly comparable GAAP measure is included elsewhere in this presentation.
(1) Excludes $111 million gain on sale of the Brazilian soy ingredients business and losses from discontinued operations of $7 million.(2) Results benefitted from tax credits
(1) (2) (2)
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Bunge Limited Results
Quarter Ended September 30Quarter EndedSeptember 30,
$2.48
$350
$107
$(442)
$760
$425
107,599
2009
$9.26
$1,274
$122
$610
$1,035
$1,767
102,502
2008
(27)%73%$170$294Agribusiness
(172)%(251)%$84$(127)Fertilizer
(12)%700%$(7)$42Food & Ingredients (2)
(73)%(5)%$1.70$1.62Earnings per share
(73)%(1)%$234$232Net income attributable toBunge
(76)%(15)%$247$209Total segment EBIT (1)
5%5%35,22136,843Volume (000 mt)
%-%-20082009
$ in millionsexcl. volume & EPS
(1) Total segment EBIT is a non-GAAP financial measure. A reconciliation to the most directly comparable GAAP measure is includedelsewhere in this presentation.
(2) Includes edible oil products and milling products segments
Nine Months EndedSeptember 30,
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Bunge Limited
Balance Sheet Summary
(1) Current assets (excluding cash and cash equivalents and marketable securities) less Current liabilities (excluding short-term debt andcurrent portion of long-term debt).
(2) 12 month rolling average
$7,436
$3,583
46.5
$2,741
$5,653
$4,635
Dec. 31,
2008
$8,710
$4,293
46.8
$3,304
$6,995
$6,013
Sep 30,
2008
47.0Cash Cycle Days (2)
$2,568- Readily Marketable Inventories
$9,522Total Bunge Shareholders Equity
$4,078Total Debt
$4,835- Inventories
$5,165Operating Working Capital (1)
Sep 30,
2009
$ in millions
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Bunge Limited
Cash Flow Summary
Quarter EndedSeptember 30,
Nine Months EndedSeptember 30,
$1,727$(547)$2,210$1,207Cash Flow from Operations
$(594)$(596)$(222)$(250)Capital Expenditures
$(275)$(539)$1,417$1,163Working Capital Changes
$2,002$(8)$793$44Funds from Operations
(before working capital changes)
2008200920082009
$ in millions
20
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Attractive Growth Profile: Financial Targets
21
Company-Wide
(average annual growth over 5 years)
Average EPS growth of 10 - 12% per year
ROIC at least 2 points > WACC
Business Segments(average annual growth over 5 years)
Volume Growth
Agribusiness
6 - 8%
Fertilizer
5 - 7%
Food & Ingredients
3 - 5%
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Backup: Non-GAAP Reconciliation Notes
23
Total segment earnings before interest and tax
Total segment earnings before interest and tax (EBIT) is consolidated net income
attributable to Bunge excluding interest income and expense and income tax attributable toeach segment.
Total segment EBIT is a non-GAAP financial measure and is not intended to replace netincome attributable to Bunge, the most directly comparable GAAP financial measure. Totalsegment EBIT is an operating performance measure used by Bunges management to
evaluate its segments operating activities. Bunge believes EBIT is a useful measure of itssegments operating profitability, since the measure reflects equity in earnings of affiliatesand minority interest and excludes income taxes. Income taxes are excluded asmanagement believes they are not material to the operating performance of its segments.Interest income and expense have become less meaningful to the segments operatingactivities as Bunge is financing more of its working capital with equity rather than debt. Inaddition, EBIT is a financial measure that is widely used by analysts and investors inBunges industries. Total segment EBIT is not a measure of consolidated operating resultsunder U.S. GAAP and should not be considered as an alternative to net income or anyother measure of consolidated operating results under U.S. GAAP.
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Backup: Non-GAAP Reconciliation Notes
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Reconciliation of total segment EBIT to net income:
In millions 2001 2002 2003 2004 2005 2006 2007 2008
Total Segment EBIT $275 $419 $561 $796 $543 $618 $1,208 $1,363
Interest - net (134) (107) (113) (110) (126) (161) (187) (147)
Income tax (72) (104) (201) (290) 82 36 (310) (245)
Minority interest share of interest and tax 64 46 53 73 31 28 67 93
Other (1) 1 1 0 0 0 0 0 0
Net income $134 $255 $300 $469 $530 $521 $778 $1,064
(1) Excludes $111 million tax-free gain on the sale of the Brazilian soy ingredients business.
(1)
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Below is a reconciliation of total segment EBIT to net income attributable to Bunge:
Backup: Non-GAAP Reconciliation
$234
32
(5)
(97)
57
$247
2008
$232
(15)
97
(79)
20
$209
2009
$1,274$350Net income attributable to Bunge
92(11)Noncontrolling interest share ofinterest and tax
(459)52Income tax benefit (expense)
(285)(212)Interest expense
15996Interest income
$1,767$425Total segment EBIT
20082009($ in millions)
Quarter EndedSeptember 30,
Nine Months EndedSeptember 30,
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Backup: Non-GAAP Reconciliation Notes
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Return on Invested Capital:Bunge calculates Return on Invested Capital (ROIC) as net income plus/minus minority interest, income tax (benefit) expense,discontinued operations-loss/gain and interest expense times the effective tax rate divided by the average total capital. Bunge believesthat ROIC provides investors with a measure of the return the company generates on the capital invested in its business. ROIC is not ameasure of financial performance under generally accepted accounting principles and should not be considered in isolation or as analternative to net income as an indicator of company performance or as an alternative to cash flows from operating activities as a
measure of liquidity.
(US$ in millions)
FISCAL YEAR ENDED DECEMBER 31, 2008 2007 2006 2005 2004 2003 2002 2001
Net income $1,064 $778 $521 $530 $469 $411 $255 $134
Add back/subtract:
Minority interest 262 146 60 71 146 104 102 72
Income tax (benefit) expense 245 310 (36) (82) 289 201 104 68
Interest expense 361 353 280 231 214 215 176 223
Discontinued operations-loss/(gain) 7 (3) (3)Cumulative effect of change in accounting principles 23 (7)
Gain on sale of soy ingredients business (111)
Operating income before tax $1,932 $1,587 $825 $750 $1,118 $827 $657 $487
Effective tax rate 16% 26% 0% 0% 32% 33% 22% 26%
Operating income after tax $1,623 $1,174 $825 $750 $760 $554 $512 $360
Shareholders' equity $7,436 $7,945 $5,668 $4,226 $3,375 $2,377 $1,472 $1,376
Minority interest 692 752 410 325 280 554 495 493
Total Debt 3,583 4,547 3,484 3,146 3,281 3,394 3,403 1,813
Total capital $11,711 $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682
Total capital (end of year) $11,711 $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682
Total capital (beginning of year) $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682 $4,207
Average total capi tal $12,478 $11,403 $8,629 $7,317 $6,631 $5,848 $4,526 $3,945
ROIC 13% 10% 10% 10% 11% 9% 11% 9%
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