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Getting Real: Navigating today’s world Carl Casale President and CEO March 2016 © 2015 CHS Inc. FORWARD-LOOKING STATEMENTS This document and the accompanying oral presentation contains, CHS Inc. (“CHS”) publicly available documents may contain, and CHS officers, directors and other representatives may from time to time make, “forward–looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward–looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward–looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS’s current beliefs, expectations and assumptions regarding the future of its businesses, financial condition and results of operations, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of CHS. CHS’s actual results and financial condition may differ materially from those indicated in the forward–looking statements. Therefore, you should not place undue reliance on any of these forward–looking statements. Important factors that could cause CHS’s actual results and financial condition to differ materially from those indicated in the forward–looking statements are discussed or identified in CHS’s public filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of the CHS Annual Report on Form 10–K for the fiscal year ended August 31, 2015. Any forward–looking statements made by CHS or its representatives in this document and the accompanying oral presentation are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to publicly update any forward–looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable law. CHS 101 • Nation’s leading cooperative, owned by farmers, ranchers and co-ops • Global energy, grains and foods business • Helping producers, co-ops and customers grow their businesses CHS 101 – FIVE WAYS WE’RE UNIQUE Cooperative structure/single taxation Doing together what our member-owners can’t do alone Connecting owners to value stream Capturing opportunity through partnerships The only company making diesel AND salad dressing GLOBAL ENERGY, GRAINS, FOODS PLATFORM DIVERSE OWNERSHIP Total equity $2.5 billion Total equity $1.3 billion Total equity $2.2 billion 1,100 locally owned cooperatives serving more than 525,000 producers 75,000 individual producers (through company-owned facilities) Preferred stockholders (CHSCP, CHSCO, CHSCN, CHSCM, CHSCL) on NASDAQ Exchange Voting equity ~70% Voting equity ~30% Voting equity 0% Getting real A WORLD OF FORCES AT PLAY FIVE YEARS OF NEWS IN 90 DAYS Cargill Monsanto Gavilon ChemChina & Syngenta DuPont & FC & West Central Dow Chemical Cooperative COFCO investment Crude oil/stock Nidera and Noble Agri market rollercoaster ADM MEANWHILE, ON THE FARM… USDA farm income estimates for 2015, compared with 2014 Cash receipts down 10% Net farm income down 38% Source: USDA WHAT OUR OWNERS ARE SAYING What single business issue keeps you up at night? In percent Transfering farm business Availability/cost of land Managing Commodity Values 0 5 10 15 20 25 30 35 40 45 WHAT OUR OWNERS ARE SAYING How will the current economic conditions influence your operations? Moving forward with strategy Curbing investments/inputs Making minor adjustments 0 5 10 15 20 25 30 35 40 SO YOU MIGHT BE WONDERING… • • • • How low will crude oil prices go? When will grain demand pick up? Is China’s economy tanking? Will the stock market stop swinging wildly? SO YOU MIGHT BE ASKING… • • • • How low will crude oil prices go? When will grain demand pick up? Is China’s economy tanking? Will the stock market stop swinging wildly? My Answer: Take your best guess Serenity Prayer: “God grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference.” – Reinhold Niebuhr (1892-1971) Changing the things we can by thinking differently Emphasizing leadership Driving change: collaboration and growth Knowing the difference between “can’t” and “won’t” Remembering why we exist: To help our owners grow WHAT OUR OWNERS ARE SAYING What do you value most about working with your CHS retailer? Value in doing business with company I own Quality products, services Local people, local experts 0 10 20 30 40 50 60 Find your new reality Those who survive can be a better version of what they were Ask me anything!