Managing Risk in a Changing Marketplace… Brian O’Hearne, President and CEO

Managing Risk in a Changing Marketplace… Brian O’Hearne, President and CEO February 17-19 Orlando

What is a Weather Hedge? • A risk contract that provides any business a method to offset financial risk from adverse weather events. • Weather contracts are used extensively by large corporations to manage weather risk. eWeatherRisk brings the same program to all farms and businesses. • There is no adjuster - it pays when the chosen weather event happens. • Weather contracts provide previously unavailable protection to regional agribusinesses. • Weather contracts can be used for virtually any weather related risk as a stand-alone solution or combination with other cover opportunities. • Or… any business that has weather risk. Bottom line: Provides a new risk management tool.

Who buys weather risk? • Every facet of the US economy uses weather hedging. • Energy (Utilities) is the largest sector, followed closely by Agribusiness. • Chances are your local power company hedges weather risk to offset excess heat or cold in order to keep your bill the same and hedge their profit. • Most agri-processors hedge against weather related cost increases to their supplies. Growers hedge weather to protect profits from excess costs and revenue losses. Weather Contracts Purchased Why? • Protect profit from adverse weather. • Stabilize earnings • Cover risk to added costs from weather related events such as freeze, drought, heat or excess rainfall eWeatherRisk’s program helps both.

Who is eWeatherRisk? • We are a weather risk platform that provides real time risk management solutions as a stand-alone strategy or to compliment crop insurance. • eWeatherRisk proprietary weather data comprises over 6,000 ground based US weather stations. • The ability to customize transactions to specific weather risks helps customers offset weather risk with a variety of industry proven solutions. • Multiple risks, dates and structures can be used, all simultaneously and all independent. • eWeatherRisk is backed by MunichRe, a $17B AA- Standard and Poor’s rated international and publicly held reinsurer

How can Ethanol benefit? • Local prices can be hedged when there is poor growing conditions or weather events that reduce yield and increase local price. • Input volumes can be hedged to alleviate costs associated with transportation, spot prices and delivery schedule issues. • CME futures positions can be hedged with regional, large area weather risk on the crop. • Risks associated with actual production can be hedged; i.e., excessive heat or excessive cold, drought, excess rain. • Plant operating efficiencies can be greatly reduced in excessively hot conditions.

RapidContract makes it fast and simple to transact.

Illinois and Iowa Excess Heat

Illinois and Iowa Excess Precipitation

Greenville Ohio Excess Heat

Greenville Ohio Excess Precipitation at Planting

Features and Benefits… • Features • Coverage - 6,000 ground-based US weather stations • Flexibility -Ability to customize transactions to specific weather risks • Timeliness - Settlement can be executed within days. • Availability - No sales closing period and advance purchase discounts are available. • Security - eWeatherRiskis backed by a AA- S&P-rated international reinsurer. • Benefits • Adaptable - The eWeatherRisk program is built by our customers! • Cost-effective- each weather solution is customized to the customer • Hassle-Free -No proof of loss required. • Transparent - weather data available daily via the web or agent • Protects: • input costs, • profitability, • forward contract delivery obligation • allows for more profitable marketing decisions Weather risk can be effectively managed.

I've been involved with eWeatherRisk almost since the day they opened their doors on a national, regional and local level. The Andersons has used eWeatherRisk for our weather risk management because the weather stations work, their pricing was reasonable and specific to the risk, they are fully transparent and payment was made as promised. Our weather risk spans many different areas yet have one common theme…offsetting increased costs and lost profits due to adverse weather. This will be our 4th year buying weather protection from them and we have always experienced tremendous agent and customer support. We believe you should have the same level of comfort The Andersons have experienced and we can't emphasize enough the importance of weather risk management to weather sensitive businesses. Mike Mock Senior Risk Manager The Andersons, Inc. It’s time to consider a weather contract for your operation.

Our Weather Risk Program: • Temperature • Heat • Cold • Precipitation • Excessive Precipitation • Insufficient Precipitation • Highest Daily Rainfall in Period • A full compliment of standard and hybrid weather risk instruments are available for these risks. The eWeatherRisk Solution… With eWeatherRisk, your weather risk is dynamically managed. With nearly 65 years of weather data from over 6,000 ground-based weather stations in the U.S. combined with unparalleled weather risk contract flexibility, pricing and contract delivery in real time. eWeatherRisk's weather solutions are backed by New/Re S&P rated AA-, a subsidiary of Munich Re the world’s largest reinsurer.

Managing Risk in a Changing Marketplace… Brian O’Hearne, President and CEO