sorenschroder -...

Bunge North America Soren SchroderCEO, Bunge North America

September 23, 2010

Bunge Investor Day

A Leading Global Agribusiness & Food Companyg g p y

Key Facts

Employees: 4,500 Facilities: 125 Countries of Operations: U.S., Canada and Mexico

Agribusiness Sugar & Bioenergy Food & IngredientsFertilizer

• A leading exporter and domestic supplier of soybeans corn wheat

• Wholesale supplier of three primary elements St t i ll li k d t

• Investor in two strategic ethanol plants and leading biodiesel

• Leading supplier to food service companies and food processors in Northsoybeans, corn, wheat,

sorghum, canola and rice

• A leading processor of soybeans in the U.S. and canola in Canada

• Strategically linked to agribusiness assets

• Leverages Bunge’s global capabilities

and leading biodiesel producer

• Key supplier of corn for ethanol and soybean oil for biodiesel

food processors in North America

• Largest corn dry miller • Leading product

developer through Bunge Ingredient

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and canola in Canada• Export facilities in New

Orleans, Brunswick and Quebec City

Bunge Ingredient Innovation Center

Bunge North America Graing

Quebec City QCQuebec City, QCExport ElevatorWinnipeg, MB

Longview, WA

Elevators: 76Storage: 4 mmtPorts: 4

M i Cit

Port of Brunswick, GA

Barges: 450Volume: 17 mmt

Mexico CityTrading office Destrehan, LA

Export Elevator

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Strong historical activity in mid south, growing into broad industry presence

Bunge North America Oilseed Processing

Nipawin, SKCrushing/refining

Ft. Saskatchewan, ABCrushing/refining

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Hamilton, ONCrushing/refining

Delphos, OHCrushing

Altona, MBCrushing/refining

Harrowby, MBCrushing/refining

Dixon, SKElevator

Council Bluffs, IACrushing/refining

Morristown, IN

Bellevue, OHCrushing/Refining

Decatur, INCrushing/refining

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P i Pl t 14

Cairo, ILCrushing

Emporia, KSCrushing

Danville, IL

o sto ,Crushing/Refining

Indianapolis, INElevator

Processing Plants: 14Crush Capacity:• Soy: 13 mmt/yr• Canola: 2 mmt/yr

Destrehan, LACrushing

Decatur, ALCrushing/refining

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Plants in the right places; scale and location drive efficiencies

Bunge North America Oils

Hamilton, ON

Harrowby, MBCrushing/refining

Edmonton, ABPackaging

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Crushing/refining

Oakville, ONPackaging

Decatur, INCrushing/refining/

Altona, MBCrushing/refining/

Nipawin, SKCrushing/refining

Wainwright, ABRefining

Montreal, QC

Modesto, CAPackaging

Morristown, IN

Bellevue, OHCrushing/refining

Kearny, NJPackaging

Crushing/refining/packaging

Council Bluffs, IACrushing/refining

g gpackaging

Chattanooga, TNProcessing/packaging

Crushing/refiningBradley, ILRefining/packaging

Refineries: 9 integrated +1Packaging Plants: 7Volume: 6 billion lbs/yrCustomers: Food

Ft. Worth, TXPackaging

Decatur, ALCrushing/refining

Customers: Food processors, Foodservice, Bakeries

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Efficient oil supply base with packaging located closest to customers

Bunge North America Oils g• Supply chain management drives efficiencies

– Inventory management– Capacity utilizationCapacity utilization

• Innovation and customer focus drive growth

• Health and functionality demand product innovationTrans/Sats mitigation: EIE IP Oils Proprietary Processes– Trans/Sats mitigation: EIE, IP Oils, Proprietary Processes

– Heart health: Phytosterols (Phytobake)

• Award winning products, sales and service

C ti k ti• Creative marketing programs

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Bunge North America Millingg g

Crete, NECorn and bulgurwheat products Danville, IL

World’s largestCorn dry mill

Kankakee, ILCorn and specialtyproduct

Mills: 4Capacity: 1.7 MTLeading supplier to food processor industry

Atchison, KSCorn products &grain merchandising

food processor industry

Queretaro, Mexico

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Plants well located, close to source of raw material and customers

Bunge North America Millingg g• Strong customer focus is foundational

– Experienced technical sales supportCorn pilot plant to run product tests– Corn pilot plant to run product tests

• As in Oils, health and functionality drive product innovation

• Processing expertise– Whole grains

High fiber– High fiber– Gluten free

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Bio Fuels and Fertilizer

• Bio Fuels minority investor– Bunge-Ergon, LLC, Vicksburg, Miss.; Southwest Iowa RenewableBunge Ergon, LLC, Vicksburg, Miss.; Southwest Iowa Renewable

Energy, Council Bluffs, Iowa– Seneca, Ill., Renewable Energy Group (REG)– Provides insight to impact on corn and protein marketsProvides insight to impact on corn and protein markets– Market of risk management services

F tili• Fertilizer– Constructing first distribution and blending facility at Council Bluffs– Co-located next to largest U.S. crush plant– Benefits from unit train logistics and strong truck flow with inbound

soybeans– Provides insight to U.S. markets and benefits from Bunge global flows

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Industry Trendsy

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Industry Trendsy• World trade of corn and soybeans expected to increase 50-75 MT by 2015:

30% from U.S.

• U S demand growth for soy meal resuming and bio diesel mandates expandU.S. demand growth for soy meal resuming, and bio diesel mandates expand– Better crush capacity utilization outlook– Majority of future DDGS production growth will be export oriented

• U.S. corn and soybean production poised to grow to support global a local demand– U.S. first adopter of production technologies – clear competitive advantage in corn

• Biotechnology pipeline could accelerate yield improvements

• Canola crop has more than doubled to 12 mmt since 2002, with potential to reach 15 t b 201515 mmt by 2015

– Canola oil has become key ingredient in U.S. food industry– A growing supplier to the world market and a profitable crop to farmers

• U S becoming increasingly more dependent on imports of fertilizerU.S. becoming increasingly more dependent on imports of fertilizer

• Consumer demands for healthier oils and output traits increase business complexity and ability to serve foodservice and processor markets

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Investment in North American infrastructure is compelling

Investing in a Growing Businessg g

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Export InfrastructurepExport Grain TerminalPort of Longview, WA

• Located in Pacific Northwest– Second largest export corridor

in North America– Most efficient route for moving

C dit tgrain to Asian markets• Joint venture with ITOCHU and

STX Pan Ocean• Annual capacity: 8 mmt; capable of

handling grain, oilseeds and protein

Commodity exportsU.S. Gulf 65%PNW 25 %

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g g , pmeals GIPSA

Origination Infrastructureg

Western Region Expansion

• Greenfields or JVs• Supports PNW and

Mexico grain flows

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Origination Infrastructureg

Eastern Region Expansion• Acquisitions/Upgrades

• Secures in-house processing supplyprocessing supply

• Supports Brunswick export link

Add f tili it t• Add fertilizer capacity at key crush locations

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Origination Infrastructureg

Center Gulf and MexicoCenter Gulf and Mexico Expansion

• Acquisition or greenfield

• Supports export flow and creates supply for West Coast programs

• Grow Mexico distribution as anchor for western crush and flexibility to West Coast flow

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Crush, Refining and Packaging Infrastructureg g g

Western Canada Upgrades

• Improve plant efficiencyat four excellent locations

• Add 2,500-3,000 tons per day capacity starting with Altona

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Crush, Refining and Packaging Infrastructureg g g

U.S. and Mexico Upgrades

Expand and upgrade• Expand and upgrade integrated crush/refine/packaging locations

•Grow B2B in Mexico

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Investing in a Growing Business

• Oilseed Processing: Expand and upgrade at select locations in Canada and U.S.

• Grain Origination: Add 150 million bushels of incremental origination to feed growing grain exports and crush; add to and replace barge fleet

• Edible Oils: Invest in product innovation and upgrade refining blending• Edible Oils: Invest in product innovation and upgrade refining, blending and packaging assets to create best-in-class efficiencies and ability to serve a growing customer base with more complex products

Milli E d i dj t b i h i t h t• Milling: Expand in adjacent businesses, such as rice, oats, wheat

• Fertilizer: Build distribution and blending assets in locations with strong logistics synergies with agribusinessg g y g g

Bunge North America is well positioned to benefit from strong growth trends

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in the North American and global markets

Thank you.

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