The Andersons (ANDE) Stephens 26th Annual Investment Conference | NASH2024 summary

Company overview and strategy

• Operates across trade, renewables, and nutrient/industrial segments, with 300 million bushels of elevator capacity and a strong North American footprint.

• Focuses on core business areas, leveraging recent acquisitions and a strong balance sheet to drive growth.

• Maintains a disciplined approach to M&A, evaluating 70-80 opportunities but prioritizing strategic fit and economics.

• Recent investments include Skyland Grain (expanding into Southwest Kansas, Texas, Oklahoma) and a $70M Port of Houston facility for soybean meal exports.

• Strategy refresh emphasizes integration between trade and nutrient segments and continued focus on sustainable, long-term growth.

Trade segment and market positioning

• Tripled in size since 2019 through acquisitions and organic growth, now among the top five U.S. grain handlers.

• Geographic diversity and asset optimization provide resilience and opportunities in both high and low price/volatility environments.

• Regenerative ag programs will cover over 250,000 acres in 2025, delivering value to producers and CPG customers.

• Skyland acquisition adds 47 elevators, 10 farm centers, and access to 7,000+ producers in a fast-growing feed demand region.

• Specialty Liquids business and expanded farm centers expected to double agronomy footprint and enhance pricing power.

Renewables segment and industry trends

• Operates four ethanol plants (joint venture with Marathon), focusing on large-scale, well-located facilities for carbon sequestration.

• 2024 margins driven by lower corn basis and strong export demand, with U.S. ethanol exports rising toward 2 billion gallons.

• Blend rates are increasing, with every 0.1% growth equating to 120 million gallons of additional ethanol consumption.

• Actively preparing for carbon capture initiatives and tax credits (45Z, IRA), with Clymers, IN plant prioritized for sequestration.

• Corn oil is positioned as a competitive renewable diesel feedstock, with potential tax credit advantages over soybean oil.