CHS OWNERS SHARING IN $519 MILLION CASH RETURN Farmers, ranchers and cooperatives across the United States will share in an estimated $519 million cash distribution from CHS during fiscal 2016. The distribution ranks among the largest in CHS history and extends a five-year record of significant cash returns to owners. The 2016 cash returns to owners demonstrate CHS commitment to maintaining a strong financial foundation, says CHS Board Chairman David Bielenberg, providing economic returns to its owners and continuing to invest in the company’s future. ““The ability of our owners, who are also our customers, to directly share in the financial success of CHS is a unique benefit of a cooperative business,” Bielenberg says. ““And this cash return is added value that enables farmers, ranchers and member cooperatives to invest in their own futures and in the communities where they live and work.” The 2016 cash return to owners is based on CHS net income of $781 million for the fiscal year ending Aug. 31, 2015. Between fiscal 2012 and 2016 (based on fiscal 2011 – 2015 earnings), CHS has distributed a total of $2.7 billion in cash, a $544 million annual average. The patronage distribution was issued in early March to about 1,100 member cooperatives and approximately 50,000 individual members and others. It consisted of patronage paid on business conducted with CHS in fiscal 2015. In early April, CHS issued 2,693,195 million shares of its CHSCO preferred stock to redeem about $77 million in previously earned qualified equity to 1,171 eligible member cooperatives. SHARING IN THE FINANCIAL SUCCESS OF CHS IS A UNIQUE BENEFIT OF A COOPERATIVE BUSINESS. — DAVID BIELENBERG, CHS BOARD CHAIRMAN “ NEW POLICY CREATES VALUE OPPORTUNITY The CHS Board of Directors has adopted a new individual member equity redemption program that adds an “age of equity” component to the company’s existing “age of producer” redemption method. The policy is effective for fiscal 2016 for which any patronage and equity distributions will be made in fiscal 2017. Future equity redemptions to both member cooperatives and individual owners will be made on an age-of-equity basis. Individual owners may continue to apply for redemption of all outstanding equity at age 70; going forward, any equity earned on future business would be redeemed under the new program. CHS INC. EARNINGS BY SEGMENT ($ IN MILLIONS) For the Three Months Ended Feb. 29 2016 2015 $(63.1) $12.1 (31.1) 1.3 16.4 (76.5) (46.3) (30.2) 0.8 $(31.0) 61.1 --17.3 90.5 (2.4) 92.9 0.1 $92.8 For the Six Months Ended Feb. 29 2016 2015 $129.9 $291.2 38.1 1.3 44.1 213.4 (22.6) 236.0 0.5 $235.5 200.4 --34.5 526.1 54.9 471.2 (0.3) $471.5 CROP NUTRIENTS PATRONAGE POOLS REVISED Changes in patronage pools for bulk fertilizer purchases will create potential value opportunities for eligible member cooperative crop nutrients customers. The CHS Board of Directors recently approved the consolidation of patronage pools for bulk fertilizer (nitrogen, phosphates, potassium – NPK – and other bulk products) into a single dry bulk fertilizer rate. A separate rate will be retained for specialty products including starter fertilizers and nitrogen efficiency products which have significantly lower volumes, but typically higher rates. The revision is effective for products purchased during fiscal 2016 (Sept. 1, 2015 – Aug. 31, 2016). CHSINC.COM Energy Ag Nitrogen Production Corporate and Other Income (loss) before income taxes Income tax (benefi t) expense Net income (loss) Net income (loss) attributable to non-controlling interests Net income attributable to CHS Inc. 26 MAY/JUNE 2016