Bunge Limited · NYSE:BG
Bunge — Merger or Acquisition (September 2017)
18 slides from Bunge's merger presentation, Sep 12, 2017
Slide 1: Creating a Leading Solutions Provider in B2B Oils
CREATING A LEADING SOLUTIONS PROVIDER IN B2B OILS 1 | September 12, 2017
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: Bunge to Acquire 70% Ownership Interest in IOI Loders Croklaan
Bunge to Acquire 70% Ownership Interest in IOI Loders Croklaan (“Loders”) Creating a leading solutions provider in B2B Oils Creates comprehensive product offering with enhanced solutions for customers Combines leading innovation and application capabilities worldwide Significantly accelerates growth
Slide 4: Advances Bunge's Value Creation Strategy
Advances Bunge’s Value Creation Strategy Focused on what we do best – Grains & Oilseeds Focused on What We • Foundation of global food supply Do Best • Significant growth in both protein and edible oils and grains Winning Industry leading global footprint Global Footprint • • Global leader in oils
Slide 5: Loders: A Leading Oils Solutions Provider
Loders: A Leading Oils Solutions Provider 1.6 MMT | VOLUME $1.6 B | NET SALES 300 + | PATENTS 500 + | PRODUCTS Leading producer Full range of palm Innovation and customer of B2B semi-specialty and tropical oil-derived application capabilities and specialty oils products across categories Strength in
Slide 6: Groundbreaking Products Across Applications and Categories
Groundbreaking Products Across Applications and Categories Loders offers a comprehensive suite of innovative, tropical oil-based products Category Applications Competitive Advantage Cake shortening Icing shortening Complex baking market needs demand Bakery Coatings Icing stabilizer tailor-
Slide 7: Bunge + Loders: A Natural Match to Best Serve Customers
Bunge + Loders: A Natural Match to Best Serve Customers Combined leading Full range of seed & innovation & tropical oils application capabilities Integrated & sustainable Expanded value chain global footprint 7 | September 12, 2017
Slide 8: Complementary Portfolios Create Comprehensive Customer Offering
Complementary Portfolios Create Comprehensive Customer Offering Bunge Core & New Loders Semi-/Specialty Oils Semi-/Specialty Oils Food Processing Bakery Food Service Confectionery Olive Lecithin Bakery Infant Nutrition Sunflower Palm Coconut Rapeseed/Canola Shea Soybean 8 | September 12, 2017
Slide 9: A Winning Product Combination Across All B2B Market Segments
A Winning Product Combination Across All B2B Market Segments Global Bunge Loders Market CAGR1 Market value1 Core Food ~4.5% $14B Processor Products Food Service ~5% $31B Bakery ~3% SEMI & SPECIALTY Confectionery ~5% $33B Human Nutrition ~6% Creates a Leading Portfolio to Serve Customers Globally (1)
Slide 10: Broadening Portfolio Exposure to Increased Margins
Broadening Portfolio Exposure to Increased Margins Gross margin/mt1 Core food processor products Food service ~3x core gross margin/mt Semi & Specialty Bakery 5x Confectionery 10x Human nutrition > 10x (1) Source: USDA, FAO, OilWorld and Bunge Research 10 | September 12, 2017
Slide 11: Combines Leading Innovation and Application Capabilities
Combines Leading Innovation and Application Capabilities Global innovation; 250+ projects ongoing US Eastern Europe Europe Customer co-development Mexico China India Serving bakery, Malaysia confectionery, food Brazil service and human nutrition customers Creates Most Comprehensive Global Innovation
Slide 12: Leading Geographic Presence and New Market Access
Leading Geographic Presence and New Market Access EUROPE Combined Presence EASTERN EUROPE New Growth Region NORTH AMERICA Combined Presence ASIA New Growth Region MEXICO New Growth Region TURKEY/ MIDDLE EAST New Growth Region SOUTH AMERICA New Growth Region Bunge Loders Combined Presence 12 | Septem
Slide 13: Builds on Clear Commitments to Sustainability
Builds on Clear Commitments to Sustainability Corporate Governance Certified Sourcing • Independent, board-level sustainability committee • > 600 kmt RSPO certified oil • Additional volumes of ISCC certified oil Cross Commodity Commitments Partners • Global no deforestation, no peat, no exploitation
Slide 14: Transaction Summary
Transaction Summary Capital Structure & Exit Transaction Details Leadership & Governance Approvals & Closing Clauses • 70% controlling ownership • Loders to operate as part of • $900M committed debt • Unanimously approved by interest Bunge’s Food & Ingredients financing respective Boards • $946M1 in
Slide 15: Generates Sizeable Synergies and Compelling Long-Term Growth Potential
Generates Sizeable Synergies and Compelling Long-Term Growth Potential Significant synergies and clear accountability for capture $M Supply Chain optimization (e.g. internalize supply) Cost Synergies $45 SG&A – shared infrastructure Industrial know-how & best practices Cross-selling Near Term Global
Slide 16: Advances Bunge Oils to the Leading Position in Earnings, Scale and Customer Relevance
Advances Bunge Oils to the Leading Position in Earnings, Scale and Customer Relevance Strong business in growing market Experienced Loders team and a committed partner Global B2B oils organization focused on customers, innovation and growth Significant synergies and clear accountability for capture
Slide 17: Creating a Leading Solutions Provider in B2B Oils
CREATING A LEADING SOLUTIONS PROVIDER IN B2B OILS 17 | September 12, 2017
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement its reporting of financial measures determined in accordance with GAAP, Bunge utilizes certain non-GAAP financial measures in this presentation, including forecasted EBITDA, EBITDA transaction multiples, and cash accretion. EBITDA and the EBITDA multiples re