Bunge Limited (BG)
February 20, 2013 3:00 pm ET
Alberto Weisser - Chairman and Chief Executive Officer
Soren W. Schroder - Chief Executive Officer of Bunge North America
Raul Padilla - Managing Director of Bunge Global Agribusiness and Chief Executive Officer of Bunge Product Lines
D. Benedict Pearcy - Chief Development Officer and Managing Director of Sugar & Bioenergy
Andrew J. Burke - Chief Financial Officer and Global Operational Excellence Officer
Kenneth B. Zaslow - BMO Capital Markets U.S.
Robert Moskow - Crédit Suisse AG, Research Division
Ian Horowitz - Rafferty Capital Markets, LLC, Research Division
Okay, if I could ask you to please take your seats for our next presenter. Thank you.
Previous Statements by BG
» Bunge Limited Management Discusses Q4 2012 Results - Earnings Call Transcript
» Bunge Limited Management Discusses Q3 2012 Results - Earnings Call Transcript
» Bunge Limited Management Discusses Q2 2012 Results - Earnings Call Transcript
Bunge is a vertically integrated global agribusiness company whose roots go back almost 200 years. Here on stage with us today is CEO, Alberto Weisser and his management team. Over the past 14 years, Alberto has lead the company's transition from a privately-owned, family-controlled conglomerate to a pure-play agribusiness company with a clear vision for growth.
Alberto announced his retirement recently, so this will be his last presentation in the CEO role at Bunge. COO Soren Schroder has been announced as his successor and he's also presenting today. And on behalf of CAGNY, I want thank you so much for your support over the years, Alberto, and wish you well in your next endeavor. Your company operates in a very volatile environment but your calm and genial manner made it easy for us to get to know you over the years and gain a deep understanding of Bunge's strategy.
So without further ado, here is Alberto Weisser.
Thank you, Rob, for the nice words. Thank you, everyone and good afternoon. Thanks for being here.
As we proceed, please consider the content of the Safe Harbor statement which is shown here. This is our second time at CAGNY, and we are very pleased to be here again. Today, we will have a presentation from Soren Schroder, who will become CEO of Bunge in June when I retire, as well as presentations from Raul Padilla and Ben Pearcy who lead our Agribusiness and Sugar & Bioenergy segments, and a financial review from Drew Burke, our CFO. Finally, we will close the day with a Q&A session.
For the benefit of those of you who are not as familiar with us, let me speak for a few moments about who we are and what we do. Bunge is a global leader in agribusiness and food. And while we only became a publicly traded company on the New York Stock Exchange in 2001, Bunge has a long 195-year history. This timeline shows you key milestones in our development since our founding in Amsterdam in 1818.
We have operations in all the major crop production and consumption markets around the world, with more than 400 facilities in over 40 countries. Our Agribusiness, Sugar & Bioenergy and then Food & Ingredients segments each benefit from leading positions in their respective markets. And our Fertilizer business is becoming a more streamlined complement to our Agribusiness operations with lower price risk and operating costs due to the recently announced sale of our Brazilian business to Yara. We expect that transaction to close in the second half of this year.
Now to describe what we do, Bunge brings food from where it is grown to where it is needed. We buy, sell, store and transport crops, process them to make them for feed for animals, staple foods and ingredients and other products. And we partner with farmers providing fertilizer know-how to help them produce larger and better harvests. We also make renewable fuels that have less impact on the environment. This slide shows you the range of commodities we handle.
Today, our global asset network is broad and balanced with strong positions in the Americas and Europe, as well as a growing presence in Asia. Our strategy consists of 3 pillars. First, strengthening our leadership positions in core businesses. In Agribusiness, we are optimizing our oilseed value chain and building share in growth markets. We are also expanding our share of grain trade and making improvements to our asset network. This includes adding new facilities, expanding existing facilities and closing less efficient ones.
In Sugar & Bioenergy, we are seeking to achieve best-in-class performance in our mills through improved efficiency, as well as increased scale and capabilities. The returns in these segments have not met expectations, and we are intensely focused on improving our revenue stream and lowering unit costs. We are also building relationships with tech providers in the fuel and biochemical industry.
And in Food & Ingredients, we are strengthening our global platforms in edible oils and grains to extract more value from the chain, building relationships with key global customers and leveraging innovation across regions and channels.
Second, expanding into adjacent businesses where we can leverage our essential capabilities to succeed in new product areas, new geographies or in places where we can extend value chains. For example, last year, we extend -- we entered the wheat milling industry in Mexico, which is an extension of our milling operations in Brazil and U.S.
And third, focusing on operational excellence. Life in the commodities business after all is about managing low margins. Many years ago, we started a robust productivity improvement process in our industrial areas. Since then, we have expanded our efforts into procurement, SG&A and logistics to drive continuous improvement throughout the company.