Annual General Meeting MAY 23, 2014 DRAFT FOR REVIEW ONLY 1 2014 ANNUAL GENERAL MEETING
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 additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation and encourages you to review these factors. 2 2014 ANNUAL GENERAL MEETING
Bunge Today Average Net Operating Assets 1% NET SALES EMPLOYEES FACILITIES COUNTRIES 6% Agribusiness 15% Sugar Food & Ingredients $ 61 B ~ 35,000 ~ 400 40 + 15% 63% Fertilizer Other AGRIBUSINESS FOOD & INGREDIENTS SUGAR & BIOENERGY • A global leader in oilseed • Leading producer of oils, • Leader in global trade and processing margarines & industrial fats distribution in the Americas and Europe • A global leader in grain & • 21 mmt sugarcane milling oilseed marketing • Growing oils position in Asia capacity producing sugar, ethanol and electricity • Fertilizer production & distribution • Leading corn and wheat miller in South America as complement in the Americas • Milling business under to agribusiness operations strategic review 3 2014 ANNUAL GENERAL MEETING
Supporting Global Food Security 2.4 billion additional people in Asia, Middle East and Africa by 2050 4 2014 ANNUAL GENERAL MEETING
Fueling Economic Growth Growth in ag is 2-4 times more effective at improving livelihoods than growth in other sectors 5 2014 ANNUAL GENERAL MEETING
Facilitating Global Trade Trade reduces food price volatility & improves global environmental efficiency 6 2014 ANNUAL GENERAL MEETING
Supporting Trusted Brands 7 2014 ANNUAL GENERAL MEETING
Producing Quality Products for Consumers Canola, rapeseed, soy and sunflower oils are among the best sources of polyunsaturated fat 8 2014 ANNUAL GENERAL MEETING
2013 Highlights � Record EBIT in core businesses • $1.3 billion combined in agribusiness and food & ingredients � Adjusted ROIC above WACC • 7.5% adjusted for gains & charges and excluding sugar & bioenergy � $2.2 billion in operating cash flow • Enhanced focus on working capital optimization � Improved portfolio mix • Strategic review of sugarcane milling • $750m sale of Brazilian fertilizer • Wheat milling acquisition in Mexico � Performance improvement program • Extract greater value from operations along entire value chain 9 2014 ANNUAL GENERAL MEETING
2014 Outlook Targeting combined Agribusiness-Foods ROIC at WACC + 1.5 points Agribusiness Food & Ingredients Sugar & Bioenergy � Demand expected � Expect results to improve � Running segment to to remain strong throughout the year be free cash flow neutral � All major growing � Continued emphasis � Continuing focus regions on track to produce on productivity, cost on productivity large grain control & working improvement and oilseed harvests capital management � Strategic review of � Managing Brazil � Extract more value the sugarcane milling market risks and from Mexico milling operations progressing logistics flows well operations 10 2014 ANNUAL GENERAL MEETING
Strategic Focus Stand for Safety Zero-incident culture Focus on HPEs Best in Class Right Balance Close performance gaps Targeted growth in core Enhance core Increase value-added capabilities Sugar milling review Invest in talent & learning Clarity & Accountability Enhanced operating model New performance management process 11 2014 ANNUAL GENERAL MEETING
Working Toward a STAND FOR SAFETY Zero-Incident Culture Safety Frequency Lost-time accidents/200k hours worked 0.30 0.20 0.18 0.17 0.16 0.14 0.13 2007 2008 2009 2010 2011 2012 2013 12 2014 ANNUAL GENERAL MEETING
STAND Eliminating High-Potential FOR SAFETY Exposures (HPEs) Five types of HPEs account for 90% of fatalities and serious injuries at Bunge Working Hoisted Mobile Mechanical Confined at Heights Loads Equipment & Electrical Spaces 13 2014 ANNUAL GENERAL MEETING
Focused on Improving Returns Best in Class 2013 Return on Invested Capital 2014/2015 Return on Invested Capital 9+% 8.5% 7.5% WACC = 7% 5.8% 2014e 2013 2015f Adjusted for certain gains & charges Adjusted for certain gains & charges and excluding sugar & bioenergy segment 14 2014 ANNUAL GENERAL MEETING
Achieving Best in Class BEST IN CLASS Closing Performance Gaps Capacity utilization (%) � Assessing performance of Plant #1 each plant worldwide Plant #1 Plant #2 � Benchmarking Industrial efficiencies (%) against best internal and external performance Plant #2 Plant #1 Plant #2 � Improved knowledge Quality & yield management (%) sharing throughout company Plant #1 Plant #2 15 2014 ANNUAL GENERAL MEETING
Improving Commercial BEST IN CLASS & Operational Performance in F&I Commercial Operational Category Asset Leadership Optimization Account Process Management Optimization Pricing Supply Capability Optimization Innovation 16 2014 ANNUAL GENERAL MEETING
CLARITY & Performance Management ACCOUNTABILITY Guiding Principles � Value : focus on value creation above capital Performance costs, measure operational value drivers with Scorecard consistent scorecards Beyond “business � Granularity : business unit emphasis as usual” � Improvement : targets based on continuous BG ¡Radar Segment ¡1 Segment ¡2 Segment ¡3 ALL Plant ¡Ramp ¡up BRM Project ¡A ★ B/Dec Operations ★ BRM Tax BRM improvement in key performance indicators Opco ¡1 Logistics BRM Project ¡B BRM SG&A E/Nov B/Dec Product ¡A BRM Opco ¡2 Consolidation BRM Macroeconomic BRM Port BRM Product ¡B BRM (KPIs) to bridge gap to best in class Country ¡A BRM New ¡integration BRM Opco ¡3 Country ¡B BRM New ¡integration BRM Country ¡C BRM Setup ★ BRM Country ¡A BRM Country ¡B ★ BRM Country ¡C BRM Opco ¡4 Country ¡D E/Jul Country ¡E E/Jul � Business initiatives : major business initiatives Country ¡F ★ BRM Country ¡E ★ BRM Country ¡D BRM Opco ¡5 Plant ¡Ramp ¡up BRM Global ¡ Logistics E/Nov Segment ¡Program ★ E/Nov Strategy E/Nov Project ¡F B/Dec Segment ¡& ¡ Industrial E/Nov Project ¡G E/Jan measured, prioritized and tracked with stage gates Strategy Overall HR OPEX ¡& ¡FIN Legend Perf. ¡Mgmt. E/Nov Incentives E/Nov IT E/Nov Status Next ¡Review Communications E/Nov Talent E/Apr Project ¡D E/Apr Off ¡track ★ ¡= ¡CEO ¡review Functions ¡& ¡ Org. ¡Model E/Apr Procurement E/Jan Needs ¡review B/Month ¡= ¡BoD Organization Safety E/Jan On ¡track E/Month ¡= ¡ExCo BRM/BSM � Consequence : escalating response to below- To ¡add ¡traffic ¡lights, ¡type: -‑1 = ¡Red target results; incentives aligned 0 = ¡Amber 1 = ¡Green Scorecard is hypothetical. 17 2014 ANNUAL GENERAL MEETING
Capital Allocation Priorities RIGHT BALANCE 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 � Filling gaps in agribusiness � Maintenance � Dividends � Expanding food � Productivity � Share repurchases & ingredients � Growth Use of capital focused on maximizing returns 18 2014 ANNUAL GENERAL MEETING
Returning Capital to Shareholders RIGHT BALANCE US$ per share of common stock Share Repurchase History 0.98 1.06 1.17 Dividend CAGR: 11% 0.90 $409M 0.385 0.42 0.48 0.56 0.63 0.67 0.74 0.82 $501M Available Used $566M $474M 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec. 31, 2013 Mar. 31, 2014 � Dividends have increased every � $975 million total program year since 2001 IPO, averaging � Repurchased $92 million during Q1 11% growth 2014 � Maintain increases in line with � 1H 2014 target: $200 million historical average 19 2014 ANNUAL GENERAL MEETING
Improving our Integrated Agribusiness RIGHT BALANCE Chain & Global Footprint Altona, MB Nikolayev, Ukraine Barcarena, PA Miritituba, PA Bunbury, WA Bunbury, WA Oilseed Processing Plant Port Terminal 20 2014 ANNUAL GENERAL MEETING
Managing Export Flows from RIGHT BALANCE Brazil’s Northern Corridor � New export route Barge transshipment • Grains from interior trucked and barged station, to Terfron port terminal in Northeastern Miritituba Brazil � Improved logistics efficiencies • Lower cost alternative to congested ports in Santos and Paranagua • Reduced CO2 emissions Terfron port � Target volume ~4 mmt terminal, Barcarena � Operational April 2014 21 2014 ANNUAL GENERAL MEETING
Rebalancing the Portfolio RIGHT BALANCE Towards Value Added % Bunge EBIT Currently Future Value Value added added 30% 22% -35% � Grain milling & processing Priorities � Oils & fats 22 2014 ANNUAL GENERAL MEETING
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