C Magazine January/February 2016 : Page 26

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WE’VE COMPLETED THE ‘SAY WHAT YOU’LL DO AND DO WHAT YOU SAY’ JOURNEY THAT BEGAN MORE THAN THREE YEARS AGO… “ COMMITMENT DRIVES SOLID PERFORMANCE In his remarks, Executive Vice President and Chief Financial Officer Tim Skidmore noted that the solid performance was very positive, “when you put it in the context of the softer environment we’re facing across the markets we operate in globally.” For fiscal 2015 (Sept. 1, 2014 – Aug. 31, 2015), CHS reported net income of $781 million on revenues of $34.6 billion. The company also returned $533.8 million to its owners in fiscal 2015, based on 2014 results. CHS expects to distribute an estimated $519 million in fiscal 2016, consisting of cash patronage, equity redemptions and preferred stock dividends. The upcoming record $2.8 billion CHS investment in CF Nitrogen – which will be finalized Feb. 1, 2016 – was a focus of leadership reports and breakout sessions. “In making this investment,” said Carl Casale, CHS president and CEO, “we’ve completed the ‘say what you’ll do and do what you say’ journey that began more than three years ago when we committed to securing an ownership stake in nitrogen fertilizer manufacturing that not only enhances supply, but creates patronage opportunities for eligible owners.” Never wavering from the company’s three-part commitment to deliver economic benefits, strategic investments and a strong financial foundation, CHS leadership reported solid performance for fiscal 2015 to member-owners at its recent annual meeting in Minneapolis. “That level of commitment – from our owners, by your board, management team and CHS employees – has been the engine driving the tremendous growth, success and change your company has experienced,” CHS Board Chairman David Bielenberg told the audience. CHS INC. EARNINGS BY SEGMENT ($ IN MILLIONS) For the 12 Months Ended Aug. 31, 2015 Energy Ag Corporate and Other Income before income taxes Income tax benefi t (expense) Net income Net (income) loss attributable to non-controlling interests Net income attributable to CHS Inc. $538.1 149.6 80.4 768.1 12.2 780.3 .7 $781.0 2014 $728.4 213.4 189.5 1,131.3 (48.3) 1,083.0 (1.6) $1,081.4 A STRONG FOUNDATION CHS earnings for fiscal 2015 (Sept. 1, 2014 – Aug. 31, 2015) of $781 million were down 28 percent from more than $1.1 billion for fiscal 2014, reflecting singular events as well as lower margins across CHS energy and agriculture businesses. Revenues for the year were $34.6 billion, down 19 percent from $42.7 billion for fiscal 2014, primarily due to lower values for the commodity energy and grains products. 26 JANUARY/FEBRUARY 2016 CHSINC.COM

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