Addressing Sustainability Goals through Innovation in Feed Ingredients

Aquavision 2012
June 13th 2012

A Leading Global Agribusiness & Food Company

Key Facts
Revenue: ~$60 Billion Employees: ~32,000 Facilities: ~400 Countries of Operations: 30+
Agribusiness Sugar & Bioenergy Food & Ingredients Fertilizer

Average Net Operating Assets

Agribusiness Sugar & Bioenergy Food & Ingredients Fertilizer Other

A global leader in oilseed processing A global leader in grain and oilseed marketing

21 mmt sugarcane milling capacity producing sugar, ethanol and electricity #2 in global trade and distribution

Leading producer of oils, margarines & industrial fats in the Americas and Europe Growing oils position in Asia Leading corn and wheat miller in the Americas

Fertilizer operations in Brazil, Argentina and the U.S. Joint venture with OCP in Morocco

 With a 194-Year History

Builds largest U.S. soybean crushing and refining plant Makes first export of soybeans from Brazil Builds first soy processing plant in U.S. Purchases edible oils company Walter Rau in Germany In Brazil, sells fertilizer nutrients business and adds five new sugarcane mills with Moema purchase

J.P.G. Bunge founds Bunge & Co. in Amsterdam

Establishes operations in Argentina to trade grain Starts business in North America

Moves headquarters to U.S. and creates international Opens first soybean marketing processing unit plant in China

1859 1818 1884

1905 1918

1938 1945

1967

1997 1998

1999 2001

2002 2005

2007 2008

2009 2010

70s & 80s

Enters Brazilian fertilizer market with purchase of Serrana Purchases Cereol to become the worlds largest soy processor Goes public on NYSE and becomes Argentinas leading agribusiness company

Purchases Santa Juliana sugarcane mill in Brazil

Relocates to Antwerp to trade commodities

Expands into Brazil and enters the wheat milling business

Diversifies along the food production chain

In Brazil, purchases soy processor Ceval and begins acquisition of new fertilizer brands

Begins building an export terminal in the U.S. Pacific Northwest and a crushing plant in Vietnam 2

What We Do: Fertilizer, Feed, Food & Fuel

Bunge markets fertilizers and processes soybeans, rapeseed, canola, sunflower seeds, corn, wheat, sugarcane and other agricultural commodities to make products and ingredients with numerous applications.
Fertilizers that help farmers produce quality crops Feed ingredients for animals Cooking oils, margarines and shortenings Sugar and ethanol from sugarcane Milled corn, wheat and rice for cereal, snacks, baked goods, beer and other foods Oils used in solvents, inks, lubricants, hydraulic fluid, foam and other applications

Carbon Value Chain

CO2

You

Carbon Value Chain

Soybeans
> 30 MM MTons seed per Year Hulls Soybean Meal Oil Lecithin DDO 50% proteins 25% fiber 20% sugars 5% minerals

CO2
Rapeseed

You

> 3 MM MTons seed per Year Rapeseed Meal Oil

Oilseeds Meal, Oil & others

Why is the industry that way?

Availability!

Shockingly rare!

Right in front of us

Right for us

PS: From Jessica Hagys post at Forbes.com http://www.forbes.com/sites/jessicahagy/2012/02/28/the-six-enemies-of-greatness-and-happiness/

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Carbon Value Chain

Understanding customer needs! NGOs & others Legislation Safe Cheap Tasty Easy Safe Cheaper Easy

CO2
Safe Cheapest Performs On time in full

You

Oilseeds Meal, Oil & others

What to make of it? Move beyond availability!

CO2

Safe = Good for the environment Cheap = No waste Tasty = Good quality ingredients Easy = Accessible .

You

Oilseeds Meal, Oil & others

Value Chain Partnerships Nutritional Density Renewable Resources Sustainable Technology

Developing alternatives
It means looking beyond what is just in front of you . Meat eating fish do not like sugars

The media is water

Get the sugars out efficiently ($)

Solubility is not a good thing

Use water

Keep temperatures low

Use enzymes to enhance value

Nutritional value is king

High Protein Low Solubility Low Phytate Rapeseed Concentrate

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Canola & Rapeseed Integrate to reduce waste!

Oil

Seed

Crushing Plant

High Protein Concentrate Canola Meal Fiber & Sugars

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Sugar & Bioenergy Integrate to reduce waste!

Sugar
Sucrose

Other sugars

Sugarcane

Ethanol Sugar Mill

Vinasse

Energy
Irrigation + NPK
Steam

Ash

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Bio Refinery Concept

Maximizing value extraction from renewable resources.

Agricultural Inputs

Biorefinery
Products No waste No emissions

No waste later too!

Addressing sustainability further down the chain creates unique opportunities improve your own position. It is not about being the only one there but being the best one.
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A Journey towards a better world

There is an awful amount of waste along value chains today Roughly 30% of the global production of vegetables will be lost before they reach the final consumer Tradition dictates availability Very hard to change Consumers want better lives Late comers to party want to have fun too Rational and innovative can go a long way towards a sustainable future Sustainability makes economic sense
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Conclusion
Sustainable solutions to consumer needs exist and can be used today The carbon value chain will continue to rely on classical agricultural for many decades to come Reducing waste everywhere along that chain is the way to create a more sustainable world Whole value chain view creates better feed ingredients by optimizing the whole and not the parts but it is not easy to do. It is all about you and the choices you make!
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