1 © 2009 CHS Inc.

Farmers Cooperative ConferenceDenver, CO

12/7/2010

2 © 2009 CHS Inc.

Continue to expand the grain and oilseed marketing in Black Sea, Asia Pacific, South and North America (including Canada)

Commodity trading expansion in other commodities (e.g. renewable fuel, CN)

Developing an energy sourcing capability

CHS Aspiration: Global Commodities

Global agriculture commodity sourcing, trading, and logistics (grain, ingredients CN, energy)

Crop inputs distribution organization

Opportunistic investments and/or financing in securing supply and demand

Description Strategic Initiatives

Develop and expand CHS global capabilities and footprint in agriculture and energy commodities

The CHS Grain Marketing business is transitioning from being:

a business that services global

customers with US commodities; when the US is competitive

to:

a global supply chain manager that can competitively service global

customers year round with multiple sources of supply

Global Grain Marketing North America’s third largest grain exporter

Markets 1.7 billion bushels of grain annually• 65% Export• 35% US domestic• Sales revenue: $12.1 billion

Markets grains and oilseeds in 60+ countries

Sources grain and oilseeds globally from:• United States, Brazil, Argentina, Black Sea, Australia, Mexico,

China

Offices outside of the US in Brazil, Argentina, China, Spain, Switzerland and Ukraine

Grain Marketing Macro Strategies

Secure long term demand access in strategic global markets

Expand global origination supply chains; improve performance

Enhance talent management/promote global employee integration

Drive global alignment; strategic and operational

CHS Global Expansion: Offices

Sao Paulo

Geneva

Hong Kong

Kiev

Shanghai

Buenos Aires

Barcelona

Duluth-Superior

Tacoma

Multigrain / CHS do Brasil

CHS Europe:Kiev office

Myrtle Grove

Shanghai office

Hong Kong office

Kalama/Vancouver

CHS de Argentina

CHS Europe:Geneva /

Barcelona offices

Grain Corp Joint Venture

Global SOYBEAN Exports

USA / South America Soybean Production

Brazil = 60% of SA

Brazil = 60% of SA

World Soybean Exports

Brazil = 71% of SA

Brazil = 71% of SA

Global CORN Exports

Global WHEAT Exports

What are global customers looking for?

Suppliers that control the supply chain• Connection to the grower

A trading partner that delivers win-win solutions

Consistent, desired quality

Dependable / timely execution

Risk management solutions

Global supply alternatives

CHS Global Expansion

SUPPLY• United States

• Brazil

• Argentina

• Black Sea

• Australia

DEMAND• Mexico• China

CHS Export Terminals

July 2010

CHS Grain Locations – South America

Main Black Sea Ports

Demand:

CHINA / ASIA

Population by Country

World 6,546,467,8331. People's Republic of China 1,278,827,6432. India 1,103,371,0003. United States of America 299,360,8794. Indonesia 232,850,4935. Brazil 187,198,3306. Pakistan 158,130,5007. Bangladesh 148,238,0988. Russia 141,895,0479. Nigeria 132,579,64910. Japan 127,417,00011. Mexico 108,299,95012. Philippines 90,025,39713. Vietnam 84,669,96114. Germany 82,125,82715. Ethiopia 75,216,62916. Egypt 79,227,63917. Turkey 70,606,60918. Iran 68,770,65519. Thailand 64,740,46720. France 60,880,561

Chinese Soybean Imports

CHS Current Business Activity in AsiaCorn 240 mil busSoybeans255 mil busWheat92 mil busOther Grains / By-Products15 mil bus

Total:602 million bushels15.7 million tons

CHS Global Expansion:

Methodology, Challenges and Benefits

23

What methodology do we use in expanding globally?

Initial Phase: Establishment of a GM Trading Office • Discovery / Education• Establishment of CHS name• CHS business rules / practices implemented• On-boarding of CHS culture • “Asset light” trading business / low risk

Second Phase: Investment• Infrastructure Development• Ownership (Investment, Acquisition, etc.)

Final Phase: Expansion• Business line expansions to other CHS areas of competency /

expertise

Competitive Landscape

Global entrants: global supply chain companies being built • Regional companies become takeover targets of companies

looking to build global supply platforms• Growth in global demand accommodates some increase in new

entrants• US, SA and Black Sea markets currently very attractive

New export capacity being built

25

Global Expansion: Challenges

Human Resources

Local Business Issues• Taxes• Labor law• Government intervention

Sovereign Risk

Counter Party Risk

Alignment

26

Global Expansion: Benefits

Human Resource pool

Global supply access

• Profitability • Market knowledge / price discovery• Export competitiveness• Year round service to customers• Manage risk / global arbitrage• Long term growth prospects• Other commodities (fertilizer)

Global Expansion: Benefits

Global demand access

• Targeted approach • Key demand destinations• Market knowledge / price discovery• Other CHS business lines

Ocean vessel freight capabilities• CHS ocean freight program has grown significantly in the last

decade CHS utilized over 6 million metric tons of ocean freight in 2010 Competitive ocean freight program helps bring more direct,

competitive bids to US stakeholders Services Grain Marketing and Crop Nutrients; other business units

in the future

Questions?

30 © 2009 CHS Inc.

Thank You!