Bunge Limited · NYSE:BG
Bunge — Q4 2014 Earnings Presentation
19 slides from Bunge's earnings presentation, Feb 12, 2015
Slide 1: Fourth Quarter 2014 Earnings Conference Call
Fourth Quarter 2014 Earnings Conference Call FEBRUARY 12, 2015 1 FOURTH QUARTER 2014 EARNINGS CONFERENCE CALL
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: CEO's Opening Comments
CEO’s Opening Comments 3 FOURTH QUARTER 2014 EARNINGS CONFERENCE CALL
Slide 4: Bunge Limited earnings highlights
Bunge Limited earnings highlights Quarter Ended Dec 31 Year Ended Dec 31 $ in millions, except EPS data 2014 2013 2014 2013 Total segment EBIT 1 $271 $396 $1,080 $1,329 Certain gains & charges 2 (138) (8) (138) 38 Total segment EBIT, adjusted 1 $409 $404 $1,218 $1,291 Agribusiness $319 $346 $895 $1,
Slide 5: 2014 tax rate reconciliation
2014 tax rate reconciliation 2014 effective tax rate 32% • Adjusted for impact of sugarcane milling 4 points impairment & restructuring 28% • Adjusted for earnings mix 5 points Forecasted effective tax rate 23% Long term projected rate remains 23%; guiding to 25% in 2015 5 FOURTH QUARTER 2014 EARNIN
Slide 6: Return on invested capital (ROIC)
Return on invested capital (ROIC) Trailing 4Q Average Adjusted for certain gains & charges Adjusted for certain gains & charges and excludes Sugar & Bioenergy segment Excludes Sugar & Bioenergy segment 9%+ 8.4% 7.5% WACC = 7% 6.6% 5.8% 2013 2014 2015f 6 FOURTH QUARTER 2014 EARNINGS CONFERENCE CALL
Slide 7: Bunge Limited cash flow
Bunge Limited cash flow Year Ended Dec 31 $ in millions 2014 2013 Funds from Operations 1 $1,133 $1,150 Changes in Operating Assets & Liabilities 266 1,075 Cash Provided by Operating Activities $1,399 $2,225 Bunge has committed credit facilities of ~$5B, of which ~$4.5B were unused and available at
Slide 8: Right balance: capital allocation priorities
Right balance: capital allocation priorities 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 • Productivity • Filling gaps in Agribusiness • Dividends: ($230
Slide 9: 2015 outlook
2015 outlook Agribusiness Ag Outlook: generally favorable as big supplies are met with solid underlying demand Large crops in both hemispheres – Stronger USD has provided windfall to farmers outside US despite lower CBOT prices – Farmer selling has been generally good in NA & Europe and will impro
Slide 10: 2015 outlook
2015 outlook Agribusiness Grains: large crops and strong shipping volumes Expecting corn and wheat combined consumption growth of 2% yoy or up 58 mmt US farmers have been slow to market corn (focusing on soybeans), but volumes expected to improve going forward Brazil farmers have only priced ~
Slide 11: 2015 outlook
2015 outlook Sugar & Bioenergy Expect solid results in trading & merchandising operation Milling operations should benefit from continued efficiency improvements and recent Brazil government energy policy decisions Increased confidence that full year results will be profitable and cash flow positive
Slide 12: Thank you
Thank you 12 FOURTH QUARTER 2014 EARNINGS CONFERENCE CALL
Slide 13: Sugar & Bioenergy highlights
Sugar & Bioenergy highlights Quarter Ended Dec 31 Twelve Months Ended Dec 31 2014 2013 2014 2013 Merchandising/Trading Volume (000 mt) 2,765 2,417 7,176 8,062 Milling Volume (mmt of cane) 4.6 4.7 19.6 19.1 Industrial Product Sales Volumes Sugar (000 mt) 165 235 751 840 Ethanol (000 mt) (1) 431 342 1
Slide 14: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Total segment earnings before interest and tax (EBIT) Total segment EBIT is consolidated net income attributable to Bunge excluding interest income and expense and income tax attributable to each segment and does not include income (loss) from discontinued opera
Slide 15: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Below is a reconciliation of total segment EBIT to net income attributable to Bunge: Quarter Ended Dec 31 Year Ended Dec 31 ($ in millions) 2014 2013 2014 2013 Total segment EBIT $271 $396 $1,080 $1,329 Interest income 16 29 87 76 Interest expense (57) (99) (282
Slide 16: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Below is a reconciliation of earnings per common share-diluted (excl. certain gains & charges and discontinued operations) to earnings per common share-diluted: Quarter Ended Year Ended December 31, December 31, 2014 2013 2014 2013 Continuing operations: Net inc
Slide 17: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains and charges Trailing 4 Trailing 4 Quarter Average Quarter Average December 31, December 31, (US$ in m illions) 2014 2013 Operating income before income tax $ 1,343 $ 1,339 Effect
Slide 18: Backup: non-GAAP reconciliation notes
Backup: non-GAAP reconciliation notes Return on Invested Capital: Bunge Limited continuing operations excl. certain gains & charges and Sugar and Bioenergy segment EBIT Trailing 4 Trailing 4 Quarter Average Quarter Average December 31, December 31, (US$ in m illions) 2014 2013 Operating income befor
Slide 19: Backup: non-GAAP reconciliation
Backup: non-GAAP reconciliation Operating income before income tax Below is a reconciliation of Income (loss) from continuing operations before income tax to Operating income before income tax: December 31, December 31, (US$ in m illions) 2014 2013 Income (loss) from continuing operations before inc