Bunge Annual Report 2016

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Mapping
Growth
2016 Annual Report
2016 Bunge Annual Report
D ear Achievements and Progress
2016 was a year of many achievements. We generated
S hareholders,
$1.5 billion in funds from operations (adjusted),
achieved returns above cost of capital and maintained
adjusted EPS essentially flat with last year, weathering a
challenging environment. The team drove a significant
Bunge plays a key role in the world’s food supply. turnaround in Food & Ingredients and Sugar & Bioenergy
What we do, and how we do it, matters to a wide range by structurally improving the underlying competitiveness
of communities, companies and individuals around of our operations, and, while it was a tough year for
the world. Agribusiness, the segment finished on a strong note.
By connecting farmers to local and global markets, by On the back of strong cash generation, we continued
conducting trade and processing commodities around our prudent focus on capital allocation, returning over
the world, we ensure dependable and sustainable $450 million to shareholders through dividends and share
supplies of staple foods. And we create high quality repurchases. Capex of $784 million was $66 million below
ingredients for meals that people prepare at home, buy our guidance and is tracking approximately $275 million
in stores and eat in restaurants. below our 2014–2017 target. Throughout the year, we
also delivered $135 million of cost and efficiency benefits,
It’s a big purpose, a great responsibility and a compelling exceeding our 2016 target by $10 million.
value creation opportunity. More than 30,000 talented
and engaged Bunge employees, who represent the It was a year of significant progress in executing our
diversity and global footprint of our business, pursue it strategy. We made multiple portfolio enhancements
every day. Together we demonstrated the strength and that will build sustainable value in Bunge. Our value-
resiliency of our organization in 2016, delivering a solid added food and ingredients portfolio was enriched
year while progressing on strategic priorities that set the with the acquisitions of edible oil producers Walter Rau
foundation for future success. Neusser and Ana Gida in Europe. We expect similar
benefits in our Mexican milling business from the pending
acquisition of Grupo Minsa. We also improved our
winning footprint, replacing our Rio de Janeiro mill with
a more efficient facility and advancing the upgrade of
our export terminal in New Orleans. In our Agribusiness
portfolio, we completed a multi-seed crush plant in
Ukraine, built our first soft seed crushing plant in China
and complemented our strong soy crushing presence in
Spain, Portugal and Italy with the acquisition of two plants
in Northern Europe.1
Partnerships remain important, and in 2016 we created
regional joint ventures with industry leaders. Two focus on
export flows: a partnership with SALIC that is building a
highly efficient, coast-to-coast Canadian grain operation,
and an expanded relationship with Amaggi, through
which we operate logistics assets in northern Brazil. The
first will fill a key gap in our footprint and the second will
1. Acquisitions of Ana Gida and the Northern Europe crush plants were announced in 2016
and closed Q1 2017.
2016 Bunge Annual Report 01
enable us to run a new system at full capacity. Another Mapping the Way Forward
two partnerships enhance our value chains in Southeast
Asia. One with Wilmar strengthens our value chain
As we look to 2017 and beyond, growing earnings in a
in Vietnam, and another with OFI expands our oils
meaningful way remains our number one financial goal.
distribution capabilities in Asia.
MARKET GROWTH
ZERO-INCIDENT VISION
We are in a growth industry, with positive market
Underpinning these accomplishments is our unwavering
fundamentals. Total trade in corn, wheat and soy is
commitment to safety. We progressed on our journey
projected to expand 180 mmt by 2025, and some
toward a zero-incident safety culture, introducing
of our strongest origination markets — Brazil, Argentina
new processes and standards with a specific focus on
and the Black Sea — will lead the expansion in exports.
eliminating high potential exposures. More than 3 million
Consumption of edible oils for food and biofuel will grow
training touch points were performed, in the form of
as well. And with a global middle class on the rise, we will
toolbox talks and online learning, and we introduced our
see an increase in food spending away from home.
families and extended communities around the world
to the importance of safety via 62 family safety days.
Bunge’s focus, scale, geographic footprint and globally
These combined efforts contributed to a 34% reduction
integrated team position us to leverage these positive
in lost time incidents and a lower number of safety
trends. We see growth aligned to three key drivers, and
incidents overall.
expect to realize their full potential in the medium term.
ACTING, CONSERVING & ENGAGING
LEADING IN CRUSH:
Sustainability is central to our vision. Our philosophy
$120 to $200 million incremental EBIT opportunity
is to “Act, Conserve, Engage” by working internally to
Our leading position in oilseed crushing, especially soy,
reduce our environmental footprint, collaborating across
will be a key growth platform. Global soy crush should
value chains to increase traceability and transparency,
expand by 80 mmt in the coming decade, and we expect
and tackling big issues like deforestation. Our work
structural margins in key origins will increase $3 to $5 per
in the palm oil sector is a good example. We have
ton as capacity utilization increases. Based on our 41 mmt
made progress in increasing the traceability of our
capacity, this would translate into $120 to $200 million of
palm supply — reaching nearly 90 percent globally
incremental EBIT contribution.
and 95 percent outside of Asia — while enhancing our
governance. We were honored to have our efforts in
sustainability recognized with a AAA sustainability rating
from MSCI.
WORLD TRADE OF CORN, WHEAT AND SOY WORLD SOY CRUSH
MMT MMT MMT
600 400 600
550 350 550
500 500
300
450 450
250
400 INCREASE BY INCREASE BY 400
~180mmt 200 ~80mmt
350 350
300 150 300
250 100 250
2005 2010 2015 2020 2025 2005 2010 2015 2020 2025 2005
Source: Bunge Source: Bunge
02 2016 Bunge Annual Report
ADDING TO VALUE ADDED: ENSURING EFFICIENCY:
$100 to $125 million incremental EBIT opportunity $250 million incremental EBIT opportunity
As the world’s largest producer of softseed oils and a The effort we have put into building a culture of
regional leader in milling in the Americas, we are already continuous improvement and the successful execution of
in a strong position to serve — and help B2B customers asset and process optimization programs have generated
manage — consumer demand for foods with health, material benefits. We are more than halfway to our
functionality, clean label and sustainability traits. And 2014–2017 target of $345 million of improvements, with
we’re investing in the world-class formulation capabilities, $255 million achieved so far. Between 2018 and 2020,
people, technologies and assets necessary to provide we forecast benefits of an additional $250 million from
value-added solutions that are ahead of the curve. industrial operations, logistics and SG&A, approximately
Recent bolt- on acquisitions have broadened our product half of which should hit the bottom line.
offerings and capabilities, while providing expanded
market and customer access. The Bottom Line
There is room for a lot more value added growth in Food While the beginning of 2017 will be slow, overall market
& Ingredients, both in increasing our offerings to existing conditions should be more favorable. Strong demand
customers, and in expanding our customer base. Today, for proteins and oils will increase crush utilization and
we estimate our share of wallet among key customers margins, and commercialization of crops will normalize
is approximately 10 percent, and with the capabilities with the arrival of record production in South America.
we have been building, we see room to grow. We are In Food & Ingredients, we expect 2017 to be a year of
focused on increasing our sales of value-added products, growth in earnings driven by an increased share of added
knowing that a 10 percent increase in sales can deliver value products and overall volumes. In sugar milling,
$30 million of incremental EBIT. All told, we expect our we are confident in our ability to deliver another solid
efforts to generate $100 to $125 million in additional EBIT. year of performance, while continuing to seek alternatives
to reduce exposure to the business. We will continue
to drive performance improvements across all of our
businesses, with $100 million of benefits planned for this
year. We expect strong cash from operations to support
our returns-driven approach to capital allocation.
Bunge has never been stronger. We are focused on
what we do best — oilseeds and grains. We are a more
streamlined and integrated company than we have ever
been, and we are using our size and scale to reach a larger
set of customers with a broader portfolio of offerings.
Our talented, diverse team exemplifies the Bunge core
values of citizenship, teamwork and entrepreneurship,
and has proven its tenacity and adaptability.
As we enter our third century of operations, our team is
primed for even greater success — standing on a solid
foundation, focused on growing markets and executing
a clear, effective strategy. I am proud of the team for
bringing us to where we are, and grateful to you, our
shareholders, for your continuing support.
Best regards,
Soren Schroder
2016 Bunge Annual Report 03
Financial
Highlights
Earnings Per Share, Return on Invested
Adjusted 1 Capital 2
$4.83 10.0%
$4.67
$4.10 8.4% 8.3% 8.6%
7.4%
6.6%
2014 2015 2016 2014 2014 2015 2015 2016 2016
Adjusted for certain Adjusted for certain gains &
(US$)
gains & charges charges and excludes Sugar
& Bioenergy segment
Funds from Cash Dividends Declared
Operations, Adjusted 3, 4 Per Common Share
$1.5 $1.64
$1.4
$1.48
$1.3
$1.2 $1.2 $1.32
2012 2013 2014 2015 2016 2014 2015 2016
(US$ in billions) (US$)
1. Excludes discontinued operations and adjusted for certain gains & charges.
2. Return on invested capital ((cid:335)ROIC(cid:336)) is a non-GAAP financial measure. Reconciliations to the most directly comparable U.S. GAAP financial measure is presented below.
3. Adjusted Funds From Operations (adjusted FFO) is a non US GAAP financial measure. Reconciliation to the most directly comparable U.S. GAAP measure is provided below.
Adjusted FFO (cid:32) Cash flow from operations before working capital changes and before foreign exchange loss (gain) on debt.
4. Adjusted FFO includes adjustments for certain gains & charges.
04 2016 Bunge Annual Report
Non-GAAP Reconciliation Notes
Net income (loss) per common share-diluted (excluding certain gains & charges and discontinued operations) to net
income (loss) per common share-diluted:
Year ended December 31, 2014 2015 2016
Continuing operations:
Net income (loss) per common share-diluted adjusted $ 4.10 $4.83 $ 4.67
(excluding certain gains & charges and discontinued operations)
Certain gains & charges (1.14) 0.01 0.40
Net income (loss) per common share — continuing operations 2.96 4.84 5.07
Discontinued operations: 0.21 0.23 (0.06)
Net income (loss) per common share-diluted $ 3.17 $5.07 $ 5.01
Adjusted FFO Reconciliation to Cash Flow from Operations
Cash provided by (used for) operating activities to Adjusted FFO reconciliation
2012 2013 20141 2015 2016
Cash provided by (used for) operating activities $ (457) $2,225 $1,399 $ 610 $1,904
Foreign exchange (loss) gain on debt 74 48 215 213 (80)
Working capital changes 1,568 (1,075) (270) 593 (347)
Adjusted FFO $1,185 $1,198 $1,344 $1,416 $1,477
1. Adjusted FFO includes an adjustment of $177 million related to certain ICMS tax credits and related interest charges, which are included in working capital changes.
ROIC Reconciliation
2014 2015 2016
Excludes Excludes Excludes
Excludes certain gains Excludes certain gains Excludes certain gains
Year Ended December 31, certain & charges certain & charges certain & charges
gains & and Sugar & gains & and Sugar & gains & and Sugar &
(US$ in millions) charges Bioenergy charges Bioenergy charges Bioenergy
Income from continuing operations before income tax $ 734 $ 734 $ 1,051 $1,051 $ 996 $ 996
Interest expense 347 347 258 258 234 234
Certain (gains) & charges 250 250 (19) (19) (43) (43)
Sugar & Bioenergy EBIT, adjusted 35 22 (51)
Operating income before income tax $ 1,331 $ 1,366 $ 1,290 $1,312 $ 1,187 $ 1,136
Tax Rate 28% 26% 27% 26% 24% 23%
Return $ 965 $ 1,011 $ 946 $ 976 $ 908 $ 872
Average total capital 1 $14,639 $12,058 $11,344 $9,794 $12,213 $10,130
ROIC 6.6% 8.4% 8.3% 10.0% 7.4% 8.6%
1. Trailing four-quarter average of total equity plus total debt.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
! ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2016
or
" TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-16625
29MAR201300314706
BUNGE LIMITED
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization)
Bermuda
(IRS Employer Identification No.)
98-0231912
(Address of principal executive offices)
50 Main Street
White Plains, New York USA
(Zip Code)
10606
(Registrant’s telephone number, including area code)
[phone]
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Common Shares, par value $.01 per share
Name of each exchange on which registered
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ! No "
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Securities Act. Yes " No !
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ! No "
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any,
every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post
such files). Yes ! No "
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K. "
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ and ‘‘smaller reporting
company’’ in Rule 12b-2 of the Exchange Act:
Large Accelerated filer ! Accelerated filer " Non-accelerated filer " (do not check if a
smaller reporting company) Smaller reporting company "
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes " No !
The aggregate market value of registrant’s common shares held by non-affiliates, based upon the closing price of our
common shares on the last business day of the registrant’s most recently completed second fiscal quarter, June 30, 2016,
as reported by the New York Stock Exchange, was approximately $8,220 million. Common shares held by executive officers
and directors and persons who own 10% or more of the issued and outstanding common shares have been excluded since
such persons may be deemed affiliates. This determination of affiliate status is not a determination for any other purpose.
As of February 17, 2017, 139,508,796 Common Shares, par value $.01 per share, were issued and outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the proxy statement for the 2017 Annual General Meeting of Shareholders to be held on May 25, 2017 are
incorporated by reference into Part III.

2016 Bunge Annual Report i
TABLE OF CONTENTS
PAGE
PART I
Item 1. Business...................................................................................................................................... 1
Item 1A. Risk Factors................................................................................................................................. 9
Item 1B. Unresolved Staff Comments............................................................................................................ 15
Item 2. Properties.................................................................................................................................... 15
Item 3. Legal Proceedings......................................................................................................................... 16
Item 4. Mine Safety Disclosures ................................................................................................................. 16
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities.................................................................................................................................. 17
Item 6. Selected Financial Data.................................................................................................................. 19
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations........................... 20
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.................................................................. 40
Item 8. Financial Statements and Supplementary Data.................................................................................... 43
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure......................... 43
Item 9A. Controls and Procedures................................................................................................................. 43
Item 9B. Other Information.......................................................................................................................... 45
PART III
Item 10. Directors, Executive Officers, and Corporate Governance....................................................................... 45
Item 11. Executive Compensation................................................................................................................. 45
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters........... 45
Item 13. Certain Relationships and Related Transactions, and Director Independence ............................................ 45
Item 14. Principal Accounting Fees and Services............................................................................................. 45
PART IV
Item 15. Exhibits, Financial Statement Schedules............................................................................................. 46
Schedule II – Valuation and Qualifying Accounts................................................................................................. E-1
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS........................................................................................ F-1
SIGNATURES................................................................................................................................................ S-1
i
ii 2016 Bunge Annual Report
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a • our ability to achieve the efficiencies, savings and other
‘‘safe harbor’’ for forward looking statements to encourage benefits anticipated from our cost reduction, margin
companies to provide prospective information to investors. This improvement, operational excellence and other business
Annual Report on Form 10-K includes forward looking optimization initiatives;
statements that reflect our current expectations and projections
about our future results, performance, prospects and • industry conditions, including fluctuations in supply, demand
opportunities. Forward looking statements include all and prices for agricultural commodities and other raw
statements that are not historical in nature. We have tried to materials and products that we sell and use in our business,
identify these forward looking statements by using words fluctuations in energy and freight costs and competitive
including ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘anticipate,’’ developments in our industries;
‘‘believe,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘estimate,’’ ‘‘continue’’ and similar
expressions. These forward looking statements are subject to a • weather conditions and the impact of crop and animal
number of risks, uncertainties, assumptions and other factors disease on our business;
that could cause our actual results, performance, prospects or
• global and regional economic, agricultural, financial and
opportunities to differ materially from those expressed in, or
commodities market, political, social and health conditions;
implied by, these forward looking statements. These factors
include the risks, uncertainties, trends and other factors
• operational risks, including industrial accidents and natural
discussed under the headings ‘‘Item 1A. Risk Factors,’’ as well
disasters; and
as ‘‘Item 1. Business,’’ ‘‘Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations,’’ and • other factors affecting our business generally.
elsewhere in this Annual Report on Form 10-K, including:
In light of these risks, uncertainties and assumptions, you
• changes in governmental policies and laws affecting our should not place undue reliance on any forward looking
business, including agricultural and trade policies and statements contained in this Annual Report on Form 10-K.
environmental, tax and biofuels regulation; Additional risks that we may currently deem immaterial or that
are not presently known to us could also cause the forward
• our funding needs and financing sources;
looking events discussed in this Annual Report on Form 10-K
not to occur. Except as otherwise required by federal securities
• changes in foreign exchange policy or rates;
law, we undertake no obligation to publicly update or revise
• the outcome of pending regulatory and legal proceedings; any forward looking statements, whether as a result of new
information, future events, changed circumstances or any other
• our ability to complete, integrate and benefit from reason after the date of this Annual Report on Form 10-K.
acquisitions, divestitures, joint ventures and strategic
alliances;
ii