Bunge Limited · NYSE:BG
Bunge — NGFA 122nd Annual Convention 2018
21 slides from Bunge's conference presentation, Mar 19, 2018
Slide 1: 2018 NGFA's 122nd Annual Convention
2018 NGFA’s 122nd Annual Convention MARCH 19, 2018 1 2018 NGFA
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: 2018 NGFA
ERNESTO A BUNGE Y J BORN -CEREALE'
Slide 4: The Agri-Food space has never been more exciting and challenging
The Agri-Food space has never been more exciting and challenging Rapidly evolving innovation along entire value chain Strong demand and dynamic markets Changing consumer habits and tastes Focus on health and sustainability All trends are intertwined and global trade ties it all together 4
Slide 5: Bunge's global footprint of Agri-Food assets enables comprehensive market coverage
Bunge’s global footprint of Agri-Food assets enables comprehensive market coverage Grain origination/infrastructure Port terminal Oilseed processing plant Edible oil facility Grain milling facility 5 2018 NGFA
Slide 6: Integrated value chains maximize results
Integrated value chains maximize results “where we start” efficiency Supply chain Reduces costs Customer Partner of choice Grain Origination Oilseed Processing Transportation & Logistics Marketing & Distribution Oil Refining & Packaging Wheat, Corn & Rice Milling Market insight Food & Agribu
Slide 7: Our strategy is focused on what we do best – Oilseeds & Grains
Our strategy is focused on what we do best – Oilseeds & Grains Soybean Canola OILSEEDS Priorities: Sunflower - Optimizing our premier global Agribusiness footprint VALUE CHAINS - Improving operating efficiency Wheat - Growing share of value added business Corn GRAINS Rice 7 2018 NGFA
Slide 8: The dynamic world of food is changing at an unprecedented pace
HEALTH & TASTE USAGE OCCASIONS WELLNESS SUSTAINABILITY CLEANLABEL SOURCING PRACTICES CONVENIENCE The dynamic world of food NATURAL is changing at an VALUE unprecedented pace. Today’s consumers are much more food literate with varied and rapidly evolving wants and needs. 8 2018 NGFA
Slide 9: Bunge Loders Croklaan brings together complementary businesses
In Bunge Loders Croklaan, we’ve brought together complementary businesses to create competitive advantages for our customers Bunge Core & New Loders Semi-/Specialty Oils Semi-/Specialty Oils Food Processing Bakery Food Service Confectionery Olive Lecithin Bakery Infant Nutrition Sunflower Palm Cocon
Slide 10: Longer term growth in global trade and soy crush is robust
Longer term growth in global trade and soy crush is robust World Trade of Corn, Wheat and Soy World Soy Crush MMT MMT 360 340 320 300 280 260 Increase by Increase by ~80mmt ~180mmt 240 220 200 180 160 Source: Bunge analysis 10 2018 NGFA
Slide 11: World trade and US share
World trade and US share Global Dry Bulk Ag Trade in mmt and US Global: Meat Exports and US share Share 40 35% 800 60% 35 30% 50% 600 30 25% 40% 25 400 30% 20% 20 20% 15% MMT 200 15 10% 10% 10 - 0% 5 5% - 0% ROW Net Exports US Net Exports US Share of Global Exports USA Rest of World USA Share Source
Slide 12: A perspective on trade: 2007/2008 Australian and Black Sea droughts
A perspective on trade: small changes in production make for dynamic shifts in trade 2007/2008 Australian and Black Sea Droughts Exports – 2mmt Wheat exports + 9 mmt Exports – 7 mmt Source: Bunge. 12 2018 NGFA
Slide 13: A perspective on trade: 2009 Argentina soybean drought
A perspective on trade: small changes in production make for dynamic shifts in trade 2009 Argentina Soybean Drought US soy exports: + 8 mmt Arg soy exports: – 11mmt Source: Bunge. 13 2018 NGFA
Slide 14: A perspective on trade: 2010 Black Sea and EU drought
A perspective on trade: small changes in production make for dynamic shifts in trade 2010 Black Sea and EU Drought Black Sea exports: -19mmt US exports +11 mmt Brazil exports: +10mmt Aus exports: +4mmt Source: Bunge. 14 2018 NGFA
Slide 15: A perspective on trade: 2011 US corn drought
A perspective on trade: small changes in production make for dynamic shifts in trade 2011 US Corn Drought and Excellent Global Crops US Exports: -16.6 mmt: Black Sea • Corn -7.3 mmt Wheat + 22.9 mmt Corn + 9.7 mmt • Beans -3.6 mmt • Wheat -5.7 mmt Brazil : +8mmt beans Aus: +4.5 mmt Arg corn: +1.6 mm
Slide 16: A perspective on trade: 2012 SAM drought followed by US drought
A perspective on trade: small changes in production make for dynamic shifts in trade 2012 SAM Drought followed by US Drought US exports: • Beans down 0.5 mmt • Corn down 13.8 mmt 12/13 SAM exports: • Beans up 2.2 mmt • Corn up 19.4 mmt Source: Bunge. 16 2018 NGFA
Slide 17: A perspective on trade: 2018 Argentine drought
A perspective on trade: small changes in production make for dynamic shifts in trade 2018 Argentine drought Arg soy crop: – 13 mmt • Meal exports: - ? Source: Bunge. 17 2018 NGFA
Slide 18: After three years of building global stocks, the grain situation is more balanced
After three years of building global stocks, the grain situation is now looking more balanced Major Origin Corn Ending Stocks – Major Origin Wheat Ending Stocks - Sep/Aug (MMT) Jun/May (MMT) 134 125 117 116 96 109 16-17 17/18 18/19 16-17 17-18 18-19 Source: Bunge analysis Source: Bunge analysis 18 2
Slide 19: Current soy crush environment shows market conditions can change dramatically
Current soy crush environment shows market conditions can change dramatically with relatively small production shortfalls Global soy crush margins have Forward Soy Crush Margins $/mt significantly improved from levels seen last year 50 45 - Argentine soy crop shortfall, constraining soymeal export
Slide 20: The agri-food industry serves a vital purpose
The agri-food industry serves a vital purpose A well functioning global trade system is to the benefit of farmers, consumers and governments - Optimizes economics - Reduces price volatility - Remains essential to food security Recent period of oversupply not an indicator of the future; small cha
Slide 21: 2018 NGFA's 122nd Annual Convention
2018 NGFA’s 122nd Annual Convention MARCH 19, 2018 21 2018 NGFA