Bunge Limited · NYSE:BG
Bunge — CAGNY Luncheon 2005
29 slides from Bunge's conference presentation, May 27, 2005
Slide 1: Partnering for the Future
Partnering for the Future Annual General Meeting CAGNY Luncheon May 27, 2005 June 20th, 2005 1
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 Today
Bunge Today Volumes in millions of metric tons $ in millions 2004 Volume: 109 2004 Operating Profit: $850 Agribusiness Fertilizer Food Products 2004 Volume: 89 2004 Volume: 12 2004 Volume: 9 2004 Operating Profit: $358 2004 Operating Profit: $372 2004 Operating Profit: $120 • Grain & Oilseed Origina
Slide 4: Why Invest in Bunge
Why Invest in Bunge 1. Attractive Businesses with Strong Long-term Growth Rates 2. Leader in High-growth Markets 3. Geographic and Product Balance 4. Differentiated Strategy 5. The Bunge Operating Model 6. Superior Financial Results 4
Slide 5: Exponential Growth
Exponential Growth 1997 2004 Volume 24 109 (millions of metric tons) Net Sales (MM$) $7,484 $25,168 Net Income (MM$) $83 $469 Ownership Private NYSE listed Global Scope 12 32 (countries) Focus Origin Integrated from processor farm to end customer 5
Slide 6: Leadership in Attractive Businesses: Agribusiness
Leadership in Attractive Businesses: Agribusiness 160 4.6% Global Soybean Meal Demand MMT : 140 a te P/A th R Grow 120 100 80 60 40 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Bunge is the #1 Oilseed Processor in the World. Source: USDA 6
Slide 7: Fastest Growth in Meat Consumption Occurs When Income is Less Than $5000 Per Year
Fastest Growth in Meat Consumption Occurs When Income is Less Than $5000 Per Year 83% Total Daily Meat & Fish Calories by Income Total Daily Meat & Fish Calories 600 Argentina Consumed per Capita 500 US China EU NE Asia Oceania Canada 400 Mercosur E. Europe 300 Brazil C Am ericaWorld 200 FSU Andean
Slide 8: Leadership in High-Growth Regions
Leadership in High-Growth Regions Global Soybean Production (millions of metric tons) % : 7.6 127 GR CA 2.9% R: CAG 78 81 78 1.5% 51 CAGR: 39 34 27 28 U.S. South America Rest of World 1994 2002 2010 #1 Oilseed Processor in South America, the Fastest-Growing Production Region in the World Source: USD
Slide 9: Leadership in Attractive Businesses: Fertilizer
Leadership in Attractive Businesses: Fertilizer Brazilian Fertilizer Market Volume Growth 300 8.6% 250 t h Rate: Grow 200 150 100 Global Market 50 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 #1 Fertilizer Producer in Brazil, the Fastest-Growing Fertilizer Market in the
Slide 10: Fertilizer Infrastructure Creates Competitive Advantage
Fertilizer Infrastructure Creates Competitive Advantage 90 Million Hectares of Available Land $40 – $60/T transportation cost advantage for fertilizer 10
Slide 11: Leadership in Attractive Businesses: Food Products
Leadership in Attractive Businesses: Food Products Global Vegetable Oil Demand MMT 120 .7% Rate: 4 100 Growth 80 60 40 20 0 1990 1992 1994 1996 1998 2000 2002 2004 Bunge is the #1 Seller of Bottled Oils Worldwide. Source: USDA 11
Slide 12: A Leader in the Fastest-Growing Markets for Bottled Oil
A Leader in the Fastest-Growing Markets for Bottled Oil (1) POPULATION GROWTH RATE COUNTRY (Millions) RANK (’04 –’10) Brazil 179 #1 1.6% Russia 145 #2 5.4% Ukraine 48 #1 5.4% Poland 39 #1 2.6% Romania 22 #1 5.8% Hungary 10 #1 6.0% Bunge is positioned for growth. (1) Consumption per capita 12
Slide 13: Trade Flows and Bunge's Global Footprint
Trade Flows and Bunge’s Global Footprint Soy Products Corn Wheat Bunge Facility From USA To Middle East To Asia To Asia 13
Slide 14: Our Global Strategy
Our Global Strategy SERVICE & GROWTH EFFICIENCY OPERATING MODEL QUALITY 14
Slide 15: Ramallo, Buenos Aires, Argentina
Ramallo, Buenos Aires, Argentina T6 Puerto San Martin Ramallo Growing Areas 15
Slide 16: New Specialized Oil to Reduce Trans Fats
New Specialized Oil to Reduce Trans Fats Contract Growing Areas: Central Iowa and Ohio Genetics Seed Growers Origination Processing Sales DuPont/Pioneer Bunge 16
Slide 17: The Bunge Operating Model
The Bunge Operating Model Fertilizer Agribusiness Food Products Retail Products Grain Oilseed Food Retail and Nutrients and Processing Consumer Origination Processing Services Decentralized, entrepreneurial and integrated 17
Slide 18: Financial Performance
Financial Performance at SEC See . ‘
Slide 19: A Track Record of Solid Growth
A Track Record of Solid Growth. . . Volumes Total Segment Operating Profit* Millions of metric tons US$ millions R: 40% % CAG 850 G R: 15 618 CA 521 106 109 86 311 71 2001 2002 2003 2004 2001 2002 2003 2004 Net Income US$ millions R: 52% 469 CAG 300(1) 255 134 2001 2002 2003** 2004 * Total segment o
Slide 20: Driving High Profitability
…Driving High Profitability… VOLUME GROWTH SEGMENT OPERATING PROFIT CAGR (’01-’04) GROWTH CAGR (’01-’04) Agribusiness 16% 32% Fertilizer 9% 40% Food Products 21% 242%(1) (1) Excludes the $111 million gain on the sale of the Brazilian soy ingredients business and results of discontinued operations. 2
Slide 21: And Excellent Shareholder Returns
…And Excellent Shareholder Returns Return on Invested Capital Return on Equity 20% 20% 18% 18% 18% 16% 16% 16% 16% 14% 11% 11% 14% 12% 9% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% (1) (1) 2002 2003 2004 2002 2003 2004 Note: ROIC is defined as the sum of income from continuing operations before incom
Slide 22: Strong Performance Continued in Q1 2005
Strong Performance Continued in Q1 2005 Volumes (millions of metric tons) ($ in millions) THREE MONTHS ENDED 3/31/2005 3/31/2004 % CHANGE VOLUMES: Agribusiness 23 20 15% Fertilizer 2 2 – (1) Food Products 2 2 – Total 27 24 13% Net Sales $5,451 $5,739 (5%) (2) Total Segment Operating Profit $139 $136
Slide 23: Strong Balance Sheet
Strong Balance Sheet • Upgrade in corporate ratings – S&P rating of BBB – Moody’s rating of Baa2 with stable outlook – Fitch rating of BBB with stable outlook • Average debt maturity of 5.7 years • Current ratio of 1.80x 23
Slide 24: Financial Targets
Financial Targets Company-wide (average annual growth over 5 years) • Average EPS growth of 10 -12% per year Business Segments (average annual growth over 5 years) Agribusiness Fertilizer Food Products Volume 6 - 8% 5 - 7% 3 - 5% 24
Slide 25: Bunge is a Superior Investment Opportunity
Bunge is a Superior Investment Opportunity 1. Attractive Businesses with Strong Long-term Growth Rates 2. Leader in High-growth Markets 3. Geographic and Product Balance 4. Differentiated Strategy 5. The Bunge Operating Model 6. Superior Financial Results 25
Slide 26: Partnering for the Future
Partnering for the Future Annual General Meeting CAGNY Luncheon May 27, 2005 June 20th, 2005 26
Slide 27: Backup: Non-GAAP Reconciliation
Backup: Non-GAAP Reconciliation Below is a reconciliation of income from continuing operations before income tax and minority interest to total segment operating profit. Year Ended (US$ in millions) 12/31/2004 12/31/2003 12/31/2002 12/31/2001 Income from continuing operations before income tax $904
Slide 28: Backup: Non-GAAP Reconciliation
Backup: Non-GAAP Reconciliation Below is a reconciliation of income from continuing operations before income tax and minority interest to total segment operating profit. Three Months Ended (US$ in millions) 3/31/2005 3/31/2004 Income from operations before income tax and minority interest (1) $157 $
Slide 29: Backup: Non-GAAP Reconciliation Notes
Backup: Non-GAAP Reconciliation Notes Total Segment Operating Profit Total segment operating profit, which is the consolidated segment operating profit of all of Bunge’s segments, is Bunge’s consolidated income from operations before income tax and minority interest that includes an allocated portio