Investors Presentation

Bunge Competitive Position in the Brazilian Agribusiness

Investors Presentation

March 2007

Brazil, March 2007

Presentation Structure
Brazilian Agriculture Overview Bunge Overview Agribusiness and Food
Bunge Alimentos

Fertilizer
Bunge Fertilizantes Fosfertil

Investors Presentation

Brazil, March 2007

Natural Resources: Available Land

Brazil has one of World largest areas to expand agriculture.
Use of land in Brazil Rain Forest Breeding Pastures Protected Areas Annual Crops Permanent Crops Cities, towns, lakes, rivers roads & swamps Cultivated Forests Subtotal Other uses Unexploited area still available for agriculture Total
Investors Presentation
RR AP

million of hectares

345 222 55 47 15 20 5 707 38 106 851

41 26 6 5 2 2 1 83 4 13 100

AM

PA

MA
PI

CE

RN PB PE AL SE

AC RO MT

TO BA GO MG MS SP PR SC RS
RJ
ES

Cerrado Area

Sources: CONAB, MAPA and EMBRAPA. Brazil, March 2007

Natural Resources: Water

World resources 97% of World water: oceans or glaciers 3% is fresh water

Brazilian resources Around 20% of fresh water reserves According to the UN researches, in 2015, 1/3 of countries will have problems with water supply

Investors Presentation

Brazil, March 2007

Brazilian Agribusiness Overview

In Brazil, the agribusiness responds for:
~30% of countrys GDP ~80% of trade balance surplus ~40% of labor force Brazil Position in the World Exports # 1 Soybean complex # 1 Beef, Chicken and leather goods # 1 Alcohol # 1 Tobacco # 1 Coffee # 1 Sugar Cane # 1 Orange Juice # 1 Cellulose
96 97 98 99 00 01 02 03 04 05 06

Brazilian Agribusiness Trade Balance

(US$ billion)

Trade Balance Surplus in 2006: US$ 43 billion CAGR 8.8%

Exports CAGR (2.8%)

Imports

Source: Aliceweb MDIC, USDA, FAO. Investors Presentation Brazil, March 2007

Business Environment
Brazilian agriculture has passed through a restructuring period. Overall profitability tends to recover. Farmers indebtedness and future profitability of Mato Grosso will be the key issues. From 2004 to 2006
Grain production loss: weather conditions and Asian rust Good situation of sugarcane coffee, orange and cotton crops and meat production Higher costs and lower prices of grains Higher costs of fertilizers BRL Appreciation Impact Decrease of grain profitability Increase of farmers indebtedness Lower fertilizer consumption and reduced profitability
Investors Presentation

From 2007 to 2009

Better scenario for grains Vegetable Oils as bio-energy source More stable BRL Still good perspectives for sugarcane, coffee, orange and cotton crops and meat production Potential new government financing skills for agriculture Impact Grain producers with better profitability Recover of fertilizer consumption Increase of crushing plants usage
Brazil, March 2007

Bunge Overview

Investors Presentation

Brazil, March 2007

Bunge Ltd. Global Presence

Building the best food and agribusiness company of the world with excellent reach and geographical balance

# 1 in main production regions

Future growth for food

# 1 in imports of soybean meal Leading importer of soy products

Investors Presentation

Brazil, March 2007

Bunge in Brazil
In Brazil since 1905, Bunge is one of the most important agribusiness and food companies of the country.

Brazilian Main Exporters

(US$ billion)

2005 1st Petrobrs 2nd CVRD 3rd Embraer 7.0 4.3 2.7

2004 4.6 3.2 3.3

05x04

52% 34% (18%)

4th Bunge
5th
More than 250 facilities (silos, distribution centers and industrial plant)

2.1
1.9

2.7
1.5

(22%)
27%

Volkswagen

In 2005, Bunge was the 2nd company with the best contribution for the Brazilian trade balance
Investors Presentation Brazil, March 2007

Bunge in Brazil

Bunge Alimentos
Largest Agribusiness exporter in Brazil Latin American leader in soy and wheat milling Brazilian leader in: Vegetable oils Shortenings Margarine Wheat flour Bakery pre-mixes

Bunge Fertilizantes
Largest fertilizers company in South America Largest producer of: Phosphate fertilizers in South America Single super-phosphate in the world Nitrogen fertilizer in Brazil Feed phosphate in South America and #4 in the world

Investors Presentation

Brazil, March 2007

Bunge in Brazil

Investors Presentation

Brazil, March 2007

Agribusiness and Foods

The Brazilian Market and Bunge Competitive Position

Investors Presentation

Brazil, March 2007

Investors Presentation

Brazil, March 2007

2006/2007 Grain Production Forecast

Although stable production in 2007 profitability is to raise and will motivate the increase of planted area for 2007 / 2008 crop

Soybean Projection
56,4 51,9 49,6 21,6 18,5 16,4 13,9 51,1 23,4 42,1 37,7 22,0 20,7 52,2

Corn Projection

48,3 41,5 35,5 13,3 12,8 12,3 12,8 12,2 12,9 41,8 35,1 42,5

47,7

13,0

2000/2001

2001/2002

2002/2003

2003/2004

2004/2005

2005/2006

2006/2007

2000/2001

2001/2002

2002/2003

2003/2004

2004/2005

2005/2006

2006/2007

Planted area (ha million) Grain production (million tons) Source: IBGE Investors Presentation Brazil, March 2007

Soybean - World Production 2020

Growth 2005-2020 1993-2005
350

USA
300 250
MM tons

Brazil Other

46 %

64 % 248 %

Argentina

60 53 42 42 59 82
2007/08
Years

200 150 100 50

45 39 51 85

42 41 52 83
2005/06

41 41 56 87
2006/07

45 44 66 85
2009/10

52 111

33 % 118 %

48 85 85
2014/15

167 %

87
2019/20

2%

42 %

0 2004/05

Source: IBGE / Agroconsult / ABIOVE

Investors Presentation

Brazil, March 2007

Consumption Drivers Soybean Meal

Annual World Meat Consumption (kg per capita)

120

Developed Countries

Developing Countries

World

100

93 80 81 81 82 82 82 87

98

80

= 57 kg per capita
60

40

30

31

31

31

32

32

35

38

41

20

20
0

21

21

21

22

22

25

28

32

1965

1975

1985

1995

1998

2005

2010

2015

2020

Source: United Nations - FAO , Dec 06

Investors Presentation

Brazil, March 2007

Overview of Bunge Alimentos

Largest Agribusiness exporter in Brazil - US$ 2,3 billion (2006) Latin America leader in soy and wheat milling Brazilian leader in: Vegetable oils Shortenings Margarine Wheat flour Bakery pre-mixes 5.307 employees 18.876 farmers
Investors Presentation Brazil, March 2007

Agribusiness

Soybean Soybean

Corn Corn

Wheat Wheat

Cotton Cotton

Canola Canola

Sunflower Sunflower

Sugar Sugar

Animal Animal Nutrition Nutrition

Rondonpolis Plant

Santos Port

S.Francisco Sul Port

Paranagua Port

Investors Presentation

Brazil, March 2007

Bunge Alimentos - Agribusiness - Footprint

Itacoatiara RR AP So Luis
z Ama er s Riv ona

PA MA
n n n n n

AM

CE

Urucui RN PB

PI BA SE

PE AL L.E.Magalhes Ilheus

AC RO
n

MT
n n n n nn

n n n nnn nn nn

TO
n

n n nn n

GO
n n n n n n

n n n n n n n n

Rondonopolis

n n n n n n MS n n n

MG ES

Luziania Vitoria

n n

n n

MS Dourados

SP
n

PR
n n nn n n n

n n

RJ Santos Paranagu So Francisco do Sul

Ponta Grossa Passo Fundo

Plants Crushing - Soybean # 8 Ports

n

n n n n nnn n nnn nn nnnn n n nn nn n n n n

SC

RS Rio Grande

#8 # 128

Silos

Investors Presentation

Brazil, March 2007

Food Products

Investors Presentation

Brazil, March 2007

Bunge Alimentos - Food Products - Foot Print

Refineries
AP RR

Wheat Milling

Suape
PA AM MA CE RN PB

L.E.Magalhes

AC TO MT

PI

Recife

PE AL SE

RO

BA

Rondonpolis
GO

Braslia
MG ES SP

Luzinia

Marilu

So Paulo (Jaguare)

MS

RJ

Fluminense

PR

Gaspar
RS

SC

Santos Ponta Grossa Joinville

Passo Fundo

Refineries Plants of Margarine Plants of Mayonese

#6 #3 #1 Mills of Wheat #7

Investors Presentation

Brazil, March 2007

Fertilizer
The Brazilian Market and Bunge Competitive Position

Investors Presentation

Brazil, March 2007

Fertilizer Production Chain

Basic Raw Materials Intermediate Raw Materials
Nitric Acid

Basic or intermediate Fertilizers

Ammonium Nitrate

Final Product

N
Nitrogen

Natural Gas Oil Nafta

Ammonia

Urea

Current Bunge and Fosfertil activities

Ammonium Sulfate

P
Phosphate

Phosphate Rock

Phosphoric Acid

Monoammonium Phosphate (MAP) Diammonium Phosphate (DAP) Triple Superphosphate (TSP) Single Superphosphate (SSP)

NPK FERTILIZERS

S -Sulfur

Sulfuric Acid

K
Potash Investors Presentation

Mineral Potassium

Potassium Chloride (KCl)

Brazil, March 2007

Bunge Integrated Business Model

Mines Basic Raw Material Chemical Process Intermediate Raw Material Basic Fertilizer Blending NPK Fertilizer

Level 1 Bunge (in BR), Mosaic (in the USA), Agrium (in the USA) Level 2 Fosfertil, Copebrs, PCS

Level 3 Mosaic (in Brazil), Yara (in Brazil) Level 4 NPK Blenders

Arax Mine

Sulfuric Acid Arax Plant

SSP Arax Plant

Cascavel Blending Unit

Investors Presentation

Brazil, March 2007

Production Location Creates Competitive Advantage

~106 Million Hectares of Available Land

~ $40/t transportation cost advantage for phosphate rock

Investors Presentation Brazil, March 2007

World Fertilizer Market Evolution

In the past 15 years, Brazilian fertilizer market presented the highest growth rate in the world. In 2006 it was recovered partially of 2005 decrease (-13%), and the Brazilian market should keep the growing rate higher than 5% / year.
World Fertilizer Consumption
(million tons of nutrients)

1990 China USA India Brazil France World

Source: IFA, ANDA. Investors Presentation

1995
33.5 20.1 13.9 4.3 4.9 129.4

2000
34.4 18.7 16.7 6.6 4.1 136.9

2005
43.4 20.1 18.4 10.5 3.9 155.1

2005 x 1990 CAGR Total

27.1 18.4 12.5 3.2 5.7 137.4

3% 1% 3% 8% -2% 1%

60% 9% 47% 228% -32% 13%

Brazil, March 2007

Supply The Role of Imports

The 2005 imports supply of around 68% of Brazilian demand for fertilizer might not change significantly in 2006. Brazilian fertilizer market is a price taker (based on international prices)
Brazilian Consumption (2005) 2.2 million t

of N

2.9 million t of P2O5

3.4 million t of K2O

10%

Production

35% 56%

90%

Imports

65% 44%

Nitrogen
Investors Presentation

Phosphate

Potash
Brazil, March 2007

Source: ANDA and SIACESP. Note: Phosphate Production: includes internal production with imported raw material.

Overview of Bunge Fertilizantes

# 1 Fertilizer retailer company in Brazil and in South America # 1 Feed phosphate producer in the South America # 2 Phosphate rock producer in Brazil # 3 Phosphate fertilizer producer in Brazil

Employees around 3,000 More than 300 agronomists Four strong brands, top of mind Differentiated sales approach by market segment National coverage of distribution Truck and ocean Freight synergies with agribusiness Swap transactions fertilizer and grains
Investors Presentation Brazil, March 2007

Footprint of Bunge Fertilizantes

Anpolis Bom Jesus Catalo Barcarena

Arax
So Luis Luis Eduardo Magalhes Macei Candeias Alto Araguaia Rondonpolis (3) Uberaba (2) Guar Ja Limeira Camb Cascavel Ponta Grossa Curitiba Rio Grande (2) Investors Presentation Brazil, March 2007 Cubato (2) Varginha Congonhal Patos de Minas Manhuau Serra

Operational Facilities
Phosphate Rock (2) Sulfuric Acid (3) Phosphoric Acid (1) SSP (5) Feed Phosphates (4) NPK Blending (34) Warehouse along Ferronorte (1)

Cajati
Paranagu Imbituba (2) Canoas

Cerrado Potential Agricultural Area

Total Number of Sites: 36

Overview of Fosfertil
# 1 Phosphate rock producer in South America # 1 Phosphate fertilizer producer in South America # 1 Nitrogen fertilizer producer in Brazil Employees around 2,600 Port terminal strategically located in Santos Industrial plant strategically located in the central region of Brazil Bunge owns 41% of Fosfertil
Bunge 52% Other 48%

Fertifos 56% 12% Fosfertil Investors Presentation

Other

32%

Brazil, March 2007

Footprint of Fosfertil

Phosphate Rock Pipe-Line

Operational Facilities
Phosphate Rock Uberaba Catalo Patos de Minas Sulfuric Acid Phosphoric Acid SSP MAP / DAP TSP Ammonia / Urea Tapira Santos Cubato / Piaaguera Araucria Ultrafertil Port Terminal
Ammonia / Ammonium Nitrate

Cerrado Potential Agricultural Area Investors Presentation Brazil, March 2007