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Advanced Biofuels Investments at Bunge April 20, 2011 Ben Pearcy Managing Director, Sugar & Bioenergy A Leading Global Agribusiness & Food Company Key Facts Average Net Operating Assets Revenue: $46 Billion Agribusiness Sugar & Bioenergy Food & Ingredients Fertilizer Other Employees: ~32,000 Facilities: ~400 Countries of Operations: 30+ Agribusiness • A global leader in oilseed processing • A global leader in grain and oilseed marketing Sugar & Bioenergy Food & Ingredients • 21 mmt sugarcane milling capacity producing sugar, ethanol and electricity • Leading producer of oils, margarines & industrial fats in the Americas and Europe • Leader in global trade and distribution • Growing oils position in Asia Fertilizer • Fertilizer operations in Brazil, Argentina and the U.S. • Joint venture with OCP in Morocco • Leading corn and wheat miller in the Americas 1 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 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 2 Building a Sugar & Bioenergy Business Acquired Moema: 5 mills with 13.7 mmt of capacity Expands Bunge total capacity to ~20 mmt Acquired 60% stake in Monteverde mill Acquired Tate & Lyle sugar trading & merchandizing business Acquired Santa Juliana mill (1st asset) Started development of Pedro Afonso mill Leading Brazil Cane Miller Leading Global Sugar Merchant Started sugar trading & merchandising operation 2005 2006 2007 2008 2009 2010 3 Sugarcane Milling Generates Not Just Sugar, But Three Principal Outputs: Sugar, Ethanol, and Power Sugar Sugarcane Evaporation decks Raw sugar storage Refining Final product packaging and storage Product mix decision Ethanol Fermentation decks Distillation towers Crusher Storage ethanol Molasses Receiving and washing Bagasse Boiler Mill usage To the grid 4 Sugarcane Industry Has Solid Fundamental Demand and Potentially Significant Longer-Term Upside as a Renewable Energy Source Today Potential Market: Brazilian power (co-generation) • Strong demand and attractive pricing Market: Industrial biotech • Biomaterials (e.g. PET…) • Significant new demand for Brazilian cane • Timeframe: Beyond 2012 Market: Brazilian ethanol (flex-fuel) • Very strong mid-term growth trends (8%+ pa) Market: Advanced fuels • Biodiesel (EU), kerosene, butanol… • Significant new demand for Brazilian cane • Timeframe: Beyond 2012 Market: International Sugar • Strong underlying growth trends • Brazil the low-cost supplier • Expanding global trade Market: International ethanol • E.g., US RFS (Renewable Fuel Standard) • Significant new demand for Brazilian ethanol • Timeframe: Beyond 2012 “Hydrocarbon economy” “Carbohydrate economy” 5 Bunge’s Strategy in Sugar & Bioenergy Build top 3 position in Brazilian cane milling industry • Brazilian cane will be the low cost winner Build top 3 position in global sugar and ethanol trading & merchandising Develop integrated global value chain supported by selected upstream and downstream investments outside Brazil • Leverage Bunge’s global network Build global relationships with technology providers and fuel/chemical industry 6 Illustrative Bunge Value Chains Corn/Wheat Food Canola/Sun Soy Cane Feed Fuel and Energy Fertilizer 7 Role of strategic innovation in Bunge Goals Find more efficient and sustainable processing paths (less energy, waste) Add additional value to our product chains Create optionality across product chains. Convergence and subsitutability Our Role Collaborate with potential winners to scale up in Brazil and commercialize Invest in selected partners, either directly or in co-development Leverage global commodity processing footprint Market intelligence on the linkages between geographies and crops 8 Potential of Microorganisms versus GM Crops • Genetically manipulation – altering the DNA of a seed or micro-organism – is the most common tool in developing new biological tools today. • Seeds – 8 to 12 years to commercial scale – Each cycle is a harvest – weeks/months – It has to be “viable” to sell – increased environmental risk – Requires change in agricultural management • Micro-organisms – 3 to 5 years to commercial scale – Each cycle is a generation hours/days – It lives in very restrictive conditions – not “viable” in the environment – less risk – Work with existing crops but can adapt quickly to new varieties – Can be use as is in fermentation or have its enzymes extracted and used as catalysts for chemical processes 99 Collaboration with Verenium – Enzymes for clean Vegetable Oil Refining – Use of the new generation of PLC phospholipases reduces by-products (gums) in oil refining, increasing oil yield and reducing refining costs. – Bunge, the vegetable oil specialist partner, developed the enzyme application Purifine® graphics courtesy of Verenium Corporation 10 Solazyme Partnership – Connecting the sugar and oil value chains The process 11 Risk of convergence - Need to find right balance versus demand for food and feed Growth in world demand for grains and oilseeds 900 1990s 2.7% 800 700 2000s CAGR 2.9% 2010s 2020s Million tons 600 500 2.8% 400 300 Wildcard: Industrial Biotechnology 1.6% 200 100 0 All Uses Source: LMC Food Feed Fuel 12 Thank you. 13