Deutsche Bank Global Consumer ConferenceJune 15, 2010
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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.
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Business Profile:A Leading Global Agribusiness & Food Company
Employees: ~32,000
Facilities: ~400
Countries of Operations: 30+
Key Facts
Agribusiness Sugar & Bioenergy Food & Ingredients
•A global leader in oilseed processing
•A global leader in grain and oilseed marketing
•Leading producer of consumer bottled oil brands in South America, Europe and Asia
•Leading supplier to food service companies and food processors in North America
•Leading corn and wheat miller in the Americas
•20 mmt sugarcane milling capacity producing sugar, ethanol and electricity
•#2 in global trade and distribution
Fertilizer
•Retail fertilizer in Brazil
•Fertilizer operations in Argentina and the U.S.
•Joint venture with OCP in Morocco
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Balanced Global Asset Network
Includes wholly owned, leased, joint venture and toll facilities. Oil processing includes refineries, bottling and packaging plants, which in certain instances are part of larger processing facilities but are reflected separately in this table. Ports include certain transshipment facilities on rivers. Map reflects countries of operation with assets and/or commercial offices.
Elevator Fertilizer Mill Oilseed Proc.
Oil Proc. Port Sugar Mill
South America
76 21 7 16 9 17 8
Asia 4 4 1
Europe 12 18 33 4
North America
81 5 16 18 4
Total 169 21 12 54 64 26 8
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Historical Performance
(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
Total Segment EBITUS$ millions
(2)
(1)
CAGR: 6%
(2)
CAGR: 13%
275
796543 618
1,363
443419 592
1,208
2001 2002 2003 2004 2005 2006 2007 2008 2009
134469 530 521
1,064
361255 300778
2001 2002 2003 2004 2005 2006 2007 2008 2009
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Long‐Term Targets and Historical Performance
9%
11%
9%
11%10% 10% 10%
13%
5%7.735.954.284.434.10
2.812.631.86
2.22
0%
3%
6%
9%
12%
15%
2001 2002 2003 2004 2005 2006 2007 2008 2009
$0
$2
$4
$6
$8
$10
Return on Invested Capital EPS
72
109117 120
137 138 141
106
86
2001 2002 2003 2004 2005 2006 2007 2008 2009
VolumesMillions of metric tons
CAGR: 9%
ROIC & EPS
Growth Targets(average annual volume growth over 5 years)
Agribusiness5 - 7%
Fertilizer 5 - 7%
Food & Ingredients 3 - 5%
Sugar & Bioenergy8 - 10%
Growth Targets
• EPS: 10 - 12% per year (average annual growth over 5 years)
• ROIC at least 2 points > WACC
(1) ROIC is a non-GAAP financial measure. A reconciliation to the most directly comparable GAAP measure is included elsewhere in this presentation.
(1 )
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Sale of Our Brazilian Fertilizer Nutrients Assets
Strategic rationale:
• Immediately realize significant value created in the fertilizer business
• Fertilizer industry undergoing change – opportune time to exit upstream activities
• Enables Bunge to redeploy resources in core businesses and other growth areas
Priorities for use of proceeds ($3.5 billion net in cash)
• Use approximately $1.5 billion to pay down debt
• Fund share repurchase program of up to $700 million of common shares
• Fund internal projects and make strategic acquisitions
• Invest in adjacent businesses that have strong returns
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Drivers of our Business: Growth in Demand and Trade
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Population is Growing Fastest in Developing Economies
Source: UN
Global Population by Type of Economy (millions)
1,237
5,671
1,275812
7,875
1,717
1950 2010 2050
More Developed Less Developed
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Growing Middle Class is Spurring Meat Consumption
94
46
9
High‐IncomeCountries
Middle‐IncomeCountries
Low‐IncomeCountries
Sources: Euromonitor, World Resources Institute
430
1,200
2000 2030
Global middle class is growing rapidly. . .
Population earning between $10-20/day
million people
… should close gap in per capita meat consumption
Meat consumption per capita
Kg / person
+770
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Leading to Steady Growth in Our Core Markets
Source: USDA
Global Consumption of Core Bunge Products
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1990 1995 2000 2005 2010
000s Metric Tons
Vegetable Oil Soybean Meal
Average annual growth rates: ~4.5%
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The World is Urbanizing
Source: UN
3,412
3,495
2,7931,798
6,398
737
1950 2010 2050
Rural Urban
Global Population by Type of Community (millions)
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Water stress defined as water withdrawal as proportion of mean annual river runoff.Source: SMAKHTIN, V.U., REVENGA, C., DÖLL, P. (2004) Taking into account environmental water requirements in global-scale water resources assessments. Research Report of the CGIAR Comprehensive Assessment of Water Management in Agriculture. No. 2, International Water Management Institute, Colombo, Sri Lanka, 24 pp.
Constraints on Natural Resources
13Source: USDAUnit of measurement: mmt
Key Regions Will Drive Export Growth: 2008‐2019
79120
51
56
Rest of WorldS. America
Soybeans & Soybean Meal
172218
79
71
Rest of WorldE. Europe, N. America, Argentina, Australia
Wheat & Coarse Grains
4762
34
44
Rest of WorldU.S.
Corn
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Agribusiness: Building on Excellent Positions
• Optimize oilseed value chain and build share in growth markets
• Expand share of grain trade
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We Will Continue to Build Our Global Asset Network,Linking Key Locations
Export Grain TerminalPort of Longview, WA
Port Terminal &Oilseed Processing Plant
Phu My, VietnamOilseed Processing Plant
Tianjin, China
•Located in Pacific Northwest
•Second largest export corridor in North America
•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
•Approximately 70 km from Ho Chi Minh City
•Near commercial feed mill operations
•Only commercial dry bulk port in Vietnam
•Building integrated soybean processing plant with crushing and multi-oil refining/bottling capabilities
•Located 90 km from center of Beijing, one of the fastest growing meat and vegetable oil markets
•Capacity expanded from 1,000 to 4,000 metric tons per day
•Joint venture with CP Group, largest feed miller in Asia
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Fertilizer: Valuable Complement to Agribusiness Operations
• Optimize volumes, product offerings and logistics
• Reduce risks associated with price volatility
• Adjust cost structure
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Fertilizer Operations Going Forward
Argentina• SSP production
plant• Nitrogen production
plant• NPK retail
U.S.• NPK Wholesale
Brazil• NPK retail
Morocco JV• Acidulation plants• MAP/DAP/TSP
production plants(under construction)
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Sugar & Bioenergy: Investing in New Areas
• Integrate Moema• Grow and expand the business to
become a leading global, fully integrated and flexible player in the industry
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Moema Acquisition Most Recent Step In Executing on Strategy to Become Global Leader in Sugar
2005
Acquired Moema:5 mills with 13.7 mmt of capacityExpands Bunge total capacity to 20 mmt
20102006 2007 2008 2009
Acquired 60% stake in Monteverde millAcquired Tate & Lyle sugar trading & merchandizing business
Acquired Santa Juliana mill (1st asset)Started development of Pedro Afonso mill
Started sugar trading & merchandising operation
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Bunge Has Established Strong Production Base in Brazil
MT BA
DF
TO
MS
PR
MG
RibeirãoPreto RJ
ES
Paranaguá
Santos
Vitória
Moema mills
Bunge mills(existing or under construction)
Note: Map not drawn to scale
0
5
10
15
20
25
30
35
40
45
2009 2010 2011 2012 2013 2014 2017
PotentialCombinedMoemaBunge
Expected Evolution of Bunge Sugarcane Milling CapacityExpected Evolution of Bunge Sugarcane Milling Capacity
Million metric tons sugarcane.
Includes forecast capacity at Bunge’s Sta. Juliana, Monteverde and Pedro Afonso mills, as well as Moema’s share of capacity.
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Brazil is Leading Supplier to Growing Sugar Market
Source: LMC International
World Sugar ConsumptionWorld Sugar Consumption Brazil is the Lowest-Cost Raw Sugar Producer in the WorldBrazil is the Lowest-Cost Raw Sugar Producer in the World
million mt, raw value Raw sugar cash costs ex-factory
140
150
160
170
180
190
200
210
2005 2010 2015 2020
2010-2020CAGR = 2-3%
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Brazilian Ethanol Demand Growing withFlex‐Fuel Car Fleet
Forecasted Brazilian Car Fleet Forecasted Brazilian Car Fleet Brazilian Domestic Ethanol DemandBrazilian Domestic Ethanol Demand
0
5
10
15
20
25
30
35
40
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ethanol only
Flex Fuel
Gasoline
Sources: Anfavea, UNICA, ANP
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2015
Anhydrous
Hydrous
CAGR = 8%
millions million cubic meters
23Sources: UNICA
Sugar‐Based Ethanol Has Attractive Energy Profile
0102030405060708090
100
2006/2007 2015/2016
Sugar Ethanol Electricity
Revenue Mix of Average Brazilian Sugar Mill
Sugarcane-based ethanol has attractive energy and greenhouse gas (GHG) profileSugarcane-based ethanol has attractive energy and greenhouse gas (GHG) profile
• Net energy balance of sugar is about 8:1 vs. corn, which is about 1:1
• ~61% GHG reduction vs. gasoline per U.S. EPA
• Classified as advanced biofuel in U.S.
• Approved for import into EU
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Food & Ingredients: Strengthen and Maintain Positions
• Offer new value-added products and enter new geographies in edible oils
• Maintain strong positions in wheat and corn dry milling
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Value‐Added Food Business and Market Approach
Raw Material Cost ChartRaw Material Cost Chart
0%
25%
50%
75%
100%
EO Bulk EO Retail Margarine Mayo
Oil as % of total production cost
Oil Other
Sources: Euromonitor
Consumption by ChannelConsumption by Channel
0%
25%
50%
75%
100%
US Poland Russia Brazil Vietnam
Retail Food Processor Food Service
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Raisio Acquisition Strengthens European Food Business
• Acquired in Q4 2009
• Headquartered in Finland
• Strong portfolio of brands and innovation capabilities
• Strengthens market position in Poland
• Provides entrance into Finland and Sweden
• Gain access to Benecol (cholesterol reducing ingredient)
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Our Approach
Multicultural team Core values Integrated and locally empowered
Purpose
FinancialGoals
StrategicPillars
EssentialCapabilities
Organization
Global assetnetwork
linking key locations
Risk management Logistics Industrial Value added
Strengthen core businesses
Expand into adjacent businesses:Geographies
Up/DownstreamNew products
Continuous operational improvement
ROIC 2% > WACCAvg. annual EPS growth: 10-12%
Avg. annual volume growth: Ag & Fert 5-7%, F&I 3-5%, S&B 8-10%
To improve the global foodproduction chain
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Essential Productivity Improvement in Face of Strengthening Currencies
193
184
66 443
2007 2008 2009 Total
Cumulative Target 2007-2010: $500 million in savings
Operational Excellence Focus AreasOperational Excellence Focus Areas
• Industrial
• SG+A
• Logistics
• Procurement
Productivity Savings 2007-2009Productivity Savings 2007-2009
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2010 Global EnvironmentalSustainability Goals – “1‐1‐5”
Reduce greenhouse gas emissions per ton of output by 1%
Reduce our water use per ton of output by 1%
Reduce the total amount of material we send to landfills by 5%
• Small statistically; big absolute impact– 1% emissions reduction = 6,000 cars off the road for 1 year– 1% water reduction (≈ 223 million gallons) = 1.2 million people in the U.S.
turning off their water for a day– 5% reduction in landfill waste = the household trash produced annually by
a town of 23,000 people in Spain
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Our Work is Improving the GlobalFood Production Chain
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FINANCIAL PERFORMANCE
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Bunge Limited ResultsQuarter Ended March 31
2010 2009 %-Δ
Volume (000 mt) 31,923 32,251 (1)%
Total segment EBIT (1) $118 $(203) n/m
Agribusiness $122 $28 336%
Sugar & Bioenergy $5 $(10) n/m
Fertilizer $(40) $(262) 85%
Food & Ingredients (2) $31 $41 (24)%
Net income (loss) attributable to Bunge $63 $(195) n/m
Earnings (loss) per share $0.31 $(1.76) n/m
Quarter EndedMarch 31,
$ in millions excl. volume & EPS
(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) Includes edible oil products and milling products segments.
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Bunge LimitedBalance Sheet Summary
(1) Current assets (excluding cash and cash equivalents and marketable securities) less Current liabilities (excluding short term debt and current portion of long term debt).
(2) 12 month rolling average.
Mar 31,
2010
Dec 31,
2009
Mar 31,
2009
Operating Working Capital (1) $4,589 $5,205 $4,797
- Inventories $3,955 $4,862 $4,961
• Readily Marketable Inventories $2,665 $3,380 $2,671
Cash Cycle Days (2) 45.9 46.7 45.5
Total Debt $4,132 $3,815 $3,683
Total Bunge Shareholders’ Equity $9,987 $9,494 $7,111
$ in millions
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Quarter Ended March 31,
Bunge LimitedCash Flow Summary
2010 2009
Funds from Operations (before working capital changes)
$ 269 $(67)
Working Capital Changes $491 $(296)
Cash Flow from Operations $760 $(363)
Capital Expenditures $(287) $(112)
$ in millions
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• Big crops should provide ample supply for agribusiness
• USDA forecasting global demand for soybean meal to grow by 4% and vegetable oil to grow by 5%
• Could be some pressure on margins from increased oilseed processing capacity in North America
• Brazil sugarcane harvest is underway; mills are operating
• Retail fertilizer should improve in the second half of the year
• Food & ingredients expected to perform as planned
2010 Outlook
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Thank you.
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2009
2008
2007
2005
2002
2001
1999
1998
1997
70s & 80s
1967
1945
1938
1918
1905
1884
1859
1818
Starts business in North America
Relocates to Antwerp to trade commodities
JPG Bunge founds Bunge & Co. in Amsterdam
Establishes operations in Argentina to trade grain Makes first export of
soybeans from Brazil
Enters Brazilian fertilizer market with purchase of Serrana
Expands into Brazil and enters the wheat milling business
Diversifies along the food production chain
In Brazil, purchases soy processor Cevaland begins acquisition of new fertilizer brands
Builds largest US soybean crushing and refining plant
Moves headquarters to US and creates international marketing unit
Goes public on NYSE and becomes Argentina’s leading agribusiness company in
Purchases Cereol and becomes the world’s largest soy processor
Opens first soybean processing plant in China
Purchases Santa Juliana sugarcane mill in Brazil
Builds first soy processing plant in US
Purchases edible oils company Walter Rau in Germany
Begins building an export terminal in the U.S. Pacific Northwest and a crushing plant in Vietnam
2010
In Brazil, purchases Moema: adding 5 new sugarcane mills
Bunge has operated in agribusiness for over 190 years
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Backup: Non‐GAAP Reconciliation Notes
(1) Excludes $111 million tax-free gain on the sale of the Brazilian soy ingredients business
Reconciliation of total segment EBIT to net income:
In millions 2001 2002 2003 2004 2005 2006 2007 2008 2009
Total Segment EBIT $275 $419 $561 $796 $543 $618 $1,208 $1,363 $443Interest - net (134) (107) (113) (110) (126) (161) (187) (147) (161)Income tax benefit (expense) (72) (104) (201) (290) 82 36 (310) (245) 110Noncontrolling interest share of interest and tax 64 46 53 73 31 28 67 93 (31)Other (1) 1 1 0 0 0 0 0 0 0
Net income $134 $255 $300 $469 $530 $521 $778 $1,064 $361
(1)
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Backup: Non‐GAAP Reconciliation Notes
Return on Invested Capital:
Bunge calculates Return on Invested Capital (ROIC) as net income plus/minus minority interest, income tax (benefit) expense, discontinued operations-loss/gain and interest expense times the effective tax rate divided by the average total capital. Bunge believes that ROIC provides investors with a measure of the return the company generates on the capital invested in its business. ROIC is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation or as an alternative to net income as an indicator of company performance or as an alternative to cash flows from operating activities as a measure of liquidity.
(US$ in millio ns)
FISCAL YEAR ENDED DECEMBER 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001
Net income $361 $1,064 $778 $521 $530 $469 $411 $255 $134Add back/subtract :
Minorit y interest (26) 262 146 60 71 146 104 102 72Income tax (benefit) expense (110) 245 310 (36) (82) 289 201 104 68Interest expense 283 361 353 280 231 214 215 176 223Discont inued operations-loss/(gain) – – – – – – 7 (3) (3)Cumulative effect of change in accounting principles – – – – – – – 23 (7)Gain on sale of soy ingredients business – – – – – – (111) – –
Ope rating income be fore tax $508 $1,932 $1,587 $825 $750 $1,118 $827 $657 $487
Effective tax rate 0% 16% 26% 0% 0% 32% 33% 22% 26%Operating income after tax $508 $1,623 $1,174 $825 $750 $760 $554 $512 $360
Shareholders' equity $9,494 $7,436 $7,945 $5,668 $4,226 $3,375 $2,377 $1,472 $1,376Minorit y interest 871 692 752 410 325 280 554 495 493Total Debt 3,815 3,583 4,547 3,484 3,146 3,281 3,394 3,403 1,813
Total capital $14,180 $11,711 $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682
Total capital (end of year) $14,180 $11,711 $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682Total capital (beginning of year) $11,711 $13,244 $9,561 $7,697 $6,936 $6,325 $5,370 $3,682 $4,207
Average total capital $12,946 $12,478 $11,403 $8,629 $7,317 $6,631 $5,848 $4,526 $3,945
ROIC 4% 13% 10% 10% 10% 11% 9% 11% 9%
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Backup: Non‐GAAP Reconciliation Notes
Total segment earnings before interest and tax
Total segment earnings before interest and tax (“EBIT”) is Bunge’s consolidated net income (loss) that excludes interest income and expense and income tax attributable to each segment.
Total segment EBIT is a non-GAAP financial measure and is not intended to replace net income (loss) attributable to Bunge, the most directly comparable GAAP financial measure. Total segment EBIT is an operating performance measure used by Bunge’s management to evaluate its segments’ operating activities. Bunge’s management believes EBIT is a useful measure of its segments’ operating profitability, since the measure reflects equity in earnings of affiliates and noncontrolling interest and excludes income tax. Income tax is excluded as management believes income tax is not material to the operating performance of its segments. In addition interest income and expense have become less meaningful to the segments’ operating activities. Total segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) attributable to Bunge or any other measure of consolidated operating results under U.S. GAAP.
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Below is a reconciliation of total segment EBIT to net income (loss) attributable to Bunge:
Backup: Non‐GAAP Reconciliation
(1) Includes other amounts not directly attributable to Bunge’s operating segments.
($ in millions) 2010 2009
Total segment EBIT $118 $(203)
Interest income 19 36
Interest expense (78) (67)
Income tax (9) 34
Noncontrolling interest share of interest and tax 13 5
Net income (loss) attributable to Bunge $63 $(195)
Quarter Ended March 31,