Chs Inc 8-K/A, filed Dec 3, 2021
Chs Inc (CHSCP)
8-K/A
2021-12-03
For: 2021-12-03
View Original
Added on
April 09, 2026
About this 8-K/A
Chs Inc filed this 8-K/A on December 3, 2021.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): December 3, 2021
(Exact Name of Registrant as Specified in its Charter)
Commission File Number: 001 -36079
| (State or Other Jurisdiction of Incorporation) | (IRS Employer Identification No.) | |||||||||||||||||||
| (Address of principal executive offices, including zip code) | ||||||||||||||||||||
| (Registrant’s telephone number, including area code) | ||||||||||||||||||||
| Not Applicable | ||||||||||||||||||||
| (Former Name or Former Address, if Changed Since Last Report) | ||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Explanatory Note
On December 3, 2021, CHS Inc. (the “Company”) furnished a Current Report on Form 8–K (the “Original Report”) to the Securities and Exchange Commission. This Current Report on Form 8–K/A amends the Original Report solely to correct typographical errors in the slide presentation attached as Exhibit 99.3 to the Original Report, and used at the Company’s 2021 Annual Meeting, to correctly state the wholesale total patronage rate for soybeans, which is $0.06 per bushel, and the cash portion thereof, which is $0.01. A corrected version of the slide presentation is attached hereto as Exhibit 99.3. Except as set forth herein, the remainder of the Original Report remains unchanged.
Item 7.01 Regulation FD Disclosure.
On December 3, 2021, Jay Debertin, President and Chief Executive Officer of the Company, and Olivia Nelligan, Executive Vice President and Chief Financial Officer of the Company, each gave a speech at the Company’s 2021 Annual Meeting. Ms. Nelligan’s speech was accompanied by a related slide presentation. A copy of Mr. Debertin’s speech is attached hereto as Exhibit 99.1, and copies of Ms. Nelligan’s speech and related slide presentation (with the corrected typographical errors referenced above) are attached hereto as Exhibits 99.2 and 99.3, respectively. Each such copy is incorporated herein by reference.
Pursuant to General Instruction B.2. to Form 8-K, the information set forth and incorporated by reference in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Form 8–K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall otherwise be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No. | Description | |||||||
| Speech of Jay Debertin | ||||||||
Speech of Olivia Nelligan | ||||||||
| Slide Presentation Related to Speech of Olivia Nelligan (corrected) | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CHS Inc. | ||||||||||||||
| Date: December 3, 2021 | By: | /s/ Olivia Nelligan | ||||||||||||
| Olivia Nelligan | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
EXHIBIT 99.1
Jay Annual Meeting Speech – 2021
8K FINAL
I want to thank all of you for your open and candid dialogue with our business leaders. Your feedback is important in helping us transform the way we operate and grow CHS.
I also want to take this opportunity to thank each of you for your business and let you know that we are focused on earning it and earning more of it.
I last stood on this stage in 2019, and I remember telling everyone that tough times never last - but tough people do.
Harsh weather, global trade disruptions - it was not an easy time.
Yet - here we are, two years later and with your help we have grown your company. And we will continue to grow your company with one goal in mind - to benefit those who own us.
You heard from Olivia earlier, Fiscal Year 2021, was strong. Strong global demand provided the tailwind, but the foundation we've been building at CHS is taking hold.
Growth is at the center of that foundation. Growth can be thought of in many ways, so I'll tell you how I think about it.
Growth at CHS is how we can drive more value for our owners – which allows us to invest in our business, in our people, and return more cash back to you.
Fortunately, the spaces that CHS operates in, provides great opportunities to do exactly that.
You can grow two ways – One - organically with investments in modernized plants and through earning more of your business.
And Two - strategically growing through targeted acquisitions and ventures that fit with our business model.
We’re doing both - and can do this because we have the people in place to win
and we have returned the company to a strong position. A very strong position.
The growth I outlined is not about being the largest – it is about growing strategically, where we can leverage our strengths, where we have an ability to win and do so in ways that we can sustain.
Leveraging our strength is important when it comes to growth.
1
I can tell you – The strength of our diversified portfolio sets us apart. No one else has the dynamic product-lines and the reach of CHS. Product lines that are
targeted at planting the acre, serving and growing the acre, and marketing the crop after harvest.
This provides us with opportunities to create efficiencies that get us to the next
level and improve the customer experience.
To do that, we’re connecting our customer-facing teams across the company to work together and help our cooperative and farmer owners grow.
We have asked Gary Halvorson to lead a new area of customer development for CHS. We will organize and work to be more strategic with you and our customers around the world to earn more of your business, to look hard for ways we can better partner together.
You should expect this from us, linking to your strategies and helping you grow. In other words, Creating Connections.
So, what are we doing to leverage our strength and grow our company?
•It starts by making strategic investments that drive better alignment and efficiencies across the company, ultimately leading to increased earnings.
We’re growing to better connect our customers around the world with the local cooperatives and producers who own us.
•We are growing for the future – by making smart investments in technologies that create those efficiencies throughout our vast network,
making us a better company and making it easier for you to do business with us.
•And finally - growing in our people, deeper in perspectives and experience, more diverse.
I'm more confident than ever that we are growing together to create connections to empower agriculture.
As Olivia noted, we’ve done a lot of work to strengthen the balance sheet and strengthen our performance – and we’ve been successful. We have more growth capital to work with. In fact, we have more growth capital in the hands of our businesses today than we’ve had since 2014. We are putting that money to work for you, investing in strategic assets - the assets we can grow with.
2
We are investing in infrastructure - we see great opportunities to grow our export/import infrastructure.
By making these Investments, we have increased access to new markets like Vietnam, Thailand, Indonesia.
Although China remains a huge market for the U.S. farmer - we will work to develop more opportunities.
These investments also will lead to significant efficiency increases within our
supply chain.
In Galveston, Texas, at our deep-water import terminal, work is underway to dredge the berth and update the operation -- enabling us to receive larger vessels and significantly speed up the time it takes to get fertilizer from the ship to the applicator and to the farmer.
We look to have this project completed in the next two years.
At our grain export terminal in Myrtle Grove, Louisiana., we have begun a $73 million expansion project that will allow us to move an additional 75 million bushels of grain to global customers in less time, with fewer bottlenecks. That means – lower cost.
These capital projects are right in-line with our strategy to expand market access for owners and evolve our businesses to make CHS our customers’ first choice.
I want to speak about our supply chain investments for a moment.
For most people - supply chains are one of those areas you don't spend much time thinking about - until - the experience turns into what we are seeing today and it seems like the only thing you are spending time on.
CHS has been investing in an integrated agronomy supply chain that provides best-
in-class solutions for cooperatives and retailers—streamlining the process to
make it easier for you to do business with us and bringing more value to you.
Our investment in nitrogen production sets us apart from traditional wholesalers and helps us compete with vertically integrated suppliers. 1.7M tons of urea and UAN come from our Equity investment in CF Nitrogen, which helps us deliver for our customers regardless of market conditions and when there is strong profitability in fertilizer manufacturing, to return some of that to those who do business with us.
3
And, we continue to grow our vertical integration capabilities –
Our Agronomy business is now marketing fertilizer produced by our McPherson, Kansas petroleum refinery. Ammonium Thiosulfate (ATS) is a value-added fertilizer for growing healthy, profitable crops. Marketing ATS as a CHS product provides cooperatives and retailers with a dependable source of valuable fertilizer for their grower customers. We always produced it, now we are marketing it, too.
To have growth advancements, you need capital investment. But those investments need to be smart and strategic. Technology advancements specific to agriculture will play a significant role in the future of our industry.
Two weeks ago, we announced a partnership between CHS and GROWMARK to form a $50 million Venture Capital Fund.
The fund will be aimed at tech startups focused on driving innovation specific to the agriculture industry.
I'm excited at the thought of CHS and GROWMARK partnering and leveraging the expansive networks of both cooperative systems. With our combined resources and scale, the invested capital will focus on work in three key areas - Crop Production, Supply Chain, and Sustainability.
The combined cooperative markets between CHS and GROWMARK cover millions of acres and thousands of farmers, creating an industry-leading test field for developing new cutting-edge technology across many agribusiness segments. With that advantage, we should get a first look at the very best technology. And, it shows cooperatives can cooperate.
It shows cooperatives can cooperate.
We are also growing sustainably – We recently announced a Carbon program in partnership with Bayer, to help offer growers and ranchers the ability to participate in carbon-smart practices.
The program allows our farmer-owners to work with their agronomist at their local CHS location and access the latest tools and technologies to ensure sustainability and profitability.
4
This program will be available to local cooperatives in the new year. It will help generate a new revenue stream for farmers by paying them for implementing climate-smart farming practices.
With core capabilities in energy, agronomy, global grain marketing and processing – along with the services around them ---
we are uniquely positioned to provide farmers with solutions that drive sustainable outcomes, growth for CHS, and value for our owners.
I want to spend a few minutes discussing the future of energy because this will play a significant role in how we are planning, investing, and looking to strategically grow your company going forward.
There are things we know today – and there are things we don't know.
Changes will continue to be driven by policies focused on reducing carbon, changing the types of energy sources consumers need.
CHS is preparing for a world with versatile energy solutions.
We're planning for growth in electric vehicles and renewable fuels. We see a lot of opportunities for CHS as these market forces change. BUT, they will only be opportunities if we adapt, like we have in the past.
When I started with CHS 38 years ago - to plant and harvest an acre of ground, we used 75% more fuel to do the same work we do today – We are planting and harvesting the same acre with a fraction of the fuel needed in 1983.
Those efficiency gains have come from advancements in engines, in better fuel, and in better farming practices. Yet, our sales of those products at CHS have never been higher than today, and our market share has never been greater than it is today.
Because we and local cooperatives adapted to that reality, we found opportunities in new markets.
When we adapt, we can thrive.
We have a terrific team of leaders guiding the CHS Energy business through whatever change comes our way. We've developed scenarios based on electric vehicles and
5
renewable fuels adoption - a scenario playbook on what could happen, which creates clarity for our choices we will make in the future.
I can tell you that diesel, which is our bread and butter, is quite resilient in whatever changes come our way.
We are actively involved in the debate around renewable diesel and its role in reducing our country's carbon footprint. We know there are very real implications for agriculture with greater adoption of renewable diesel.
If we see rapid expansion in this space, we will see additional pressure to process soybeans into soy oil which is the key ingredient in renewable diesel. We'll see expansion in crushing capacity, too.
And this expansion leads to much more soybean meal. It also impacts the buyers of soybeans around the world. This can be very positive for agriculture, but it can mean a lot of change. And we have to remember that it hinges on today’s government policies.
We started implementing our growth plans for these expanding soy oil markets two years ago, at our Fairmont, Minnesota., plant. Our $100 million Fairmont expansion has increased soybean crush capacity by 30%.
We have also begun a further investment of over $60 million for our soybean refinery expansion in Mankato, Minnesota, driven by the strong global soybean oil demand.
It will help us capitalize on changing market dynamics and opportunities that will expand market access. Our refined soybean oil production will increase by more than 35% once the project is completed in the summer of 2023.
Bottom line - we'll be processing more of our farmers' soybeans into value-added products, which are in high demand by our global customers. The growth is there, and we will capitalize on it.
We have the opportunity to serve rural America with versatile energy solutions, meeting your needs and growing the company.
We cannot continue to drive growth without investing in our workforce and what business today is not focused on talent.
We’ll continue to invest in developing and attracting the very best talent, ensuring we have the right people with the right capabilities in the right roles for the future.
6
I'll leave you with one final thought.
The U.S. farmer can compete with anyone around the world. ANYONE.
It’s because the American farmer knows how to adapt and change with the times –
The American farmer is tough and resilient.
This company – Your Company – is tough and resilient.
Together, with you, our owners, we’ve proven that we are tough enough - not just to survive, but to thrive.
The job of the U.S. farmer has never been more important, we are feeding the world.
And that task, that noble task, is going to get more important in this ever changing world.
We will keep learning – we will keep improving, AND- we will keep growing – together – creating connections to empower agriculture.
Thank you.
7
EXHIBIT 99.2
CHS Fiscal 2021 Annual Meeting
CFO Report, FINAL 11/29/21
•Good day, CHS owners and business partners.
•I am delighted to be here with you to share our progress.
•It’s been great to meet many of you in person, both this morning and over the summer at our owners’ forums.
•If we haven’t yet met, I look forward to connecting and learning about your cooperatives and farming operations.
•I am pleased to share with you the Fiscal 2021 Financial Report this morning.
•CHS had a strong year financially, especially in the second half of the Fiscal year.
•We have been able to harness the power of our enterprise and the passion of our people in this strong ag economy to serve our customers throughout the globe and to deliver value for our local cooperative and farmer owners.
•We saw continued headwinds and uncertainty in our energy business and felt some weather impacts on our Ag segment, including Hurricane Ida on the gulf.
•However, the diversification and resiliency of our operations and the commitment of our owners helped drive increased Fiscal 2021 revenue and significantly improved bottom-line performance over last year.
•Before I go into detail, I will preface my remarks with the customary safe harbor language.
•Some of the business and financial topics we discuss today may contain forward-looking statements.
•Future results may differ from those implied by today’s comments.
•These differences may exist because of risks and uncertainties in our business, including those we describe in our most recent annual report, which is on file with the SEC.
Business Strategy
•I’d like to highlight our overall business strategy.
•At CHS:
◦We strive to create experiences that empower customers to make CHS their first choice.
◦Expand market access to add value for our owners.
◦Transform and evolve our core businesses by capitalizing on changing market dynamics.
•To execute on these strategies, we have five key enablers:
◦Agile and sustainable technology platforms.
◦Robust and efficient supply chains.
◦High-performing, diverse and passionate teams.
◦Operational excellence.
◦A strong balance sheet.
Revenues
•Total Revenue in Fiscal 2021 was $38.4 billion which was 35% higher than the previous year and our highest Revenue since 2014.
•The Revenue increase was primarily driven by robust global demand and rising commodity prices in our Ag segment.
Net Income
•Net income for Fiscal 2021 was $554.0 million, a 31% increase over last year.
•Despite a disappointing first half, we were able to deliver this strong full year result through:
◦The wholehearted commitment of our employees;
◦Strong customer demand and engagement;
◦Support from all of you, our owners; and
◦A disciplined approach to taking cost out of the business.
•Additionally, through our focused attention on cashflow optimization we reduced our cash conversion cycle by six days which resulted in ~$8 million less interest cost based on freeing up working capital.
•We will now review the segments that make up our earnings – Energy, Ag, Nitrogen Production and Foods – as well as our Corporate and Other category.
Energy
•Starting with Energy, which includes four businesses – refined fuels, propane, lubricants and transportation.
•As we look at the year over year comparison, just a reminder the first six months of 2020 were before the pandemic impacted our markets.
•In 2021, demand destruction impacts from the pandemic lingered throughout the entire year, although we saw continued recovery in our Energy segment as the year progressed.
•Though revenues increased year-over-year, this segment had a pretax loss of $10.6 million, a $235.9 million decrease in pretax income versus the prior year.
•We were encouraged that overall our refined fuels volumes held up well in comparison with the industry.
•While refining margins improved over the year as demand shocks from the COVID-19 pandemic began to subside, the resulting margin improvements were negatively impacted by a number of factors:
◦Exceptionally high costs for renewable energy credits, or RINS; and
◦Less favorable pricing on heavy Canadian crude oil processed by our refineries, resulting in lower earnings.
•Reduced propane volumes resulting from warmer and drier weather conditions during Fiscal 2021 also contributed to a $16 million decrease in earnings.
•Given the significant headwinds our Energy segment has faced in the past year and a half, we’re pleased with the progress we’ve made, particularly in the second half of Fiscal 2021, and we will look to build on that positive momentum in Fiscal 2022.
Ag
•Now let’s look at our Ag segment.
•This reporting segment includes our wholesale agronomy business, global grain & processing and country operations.
•In Fiscal 2021, Ag revenues increased by 40% to $32 billion and the Ag segment delivered pretax earnings of $298 million, a $244 million increase from the prior year.
•We saw favorable weather conditions for the fall harvest and spring planting seasons.
•We also saw a full year of improved trade relations between the United States and foreign trade partners which resulted in strong global demand for grains and oilseeds and an increase in commodity prices.
•Improved agronomy, retail and processing margins were partially offset by lower grain and oilseed margins, including the impact of significant mark-to-market losses that are expected to reverse over time.
•We had higher equity income from our joint venture investment in TEMCO, our grain export operations in the Pacific Northwest.
•While market dynamics were in our favor, I want to underscore the hard work we have been doing to gain efficiencies across our supply chain that led to higher volumes and improved segment earnings by over 450% over the prior year.
Nitrogen Production
•Nitrogen Production represents our investment in CF Nitrogen.
•Pretax income of $121M was up $69.2 million.
•This increase was primarily a result of increased sales prices for urea and urea ammonium nitrate, or UAN, which are the focus of our commercial relationship with, and equity distributions from CF Nitrogen.
•These higher prices were partially offset by increased natural gas costs.
Foods
•Our separately reported Foods segment this year consists of our equity investment in Ventura Foods and associated expenses.
•Ventura Foods is a 50:50 joint venture between CHS and Mitsui and is a producer of edible oil-based branded and private label food products.
•CHS share of Ventura’s pretax earnings contributed $67.9 million, a $43.7 million year-over-year increase.
•This was a result of favorable market conditions for edible oils and a recovery of sales volumes in Fiscal 2021, compared with the early stages of the COVID-19 pandemic in Fiscal 2020.
Corporate and Other
•Lastly, our Corporate and Other category includes:
◦Our corporate function costs;
◦CHS Hedging, our full-service brokerage business;
◦CHS Capital, which provides financing to members.
◦It also includes our joint venture investment in Ardent Mills, a leading wheat milling and ingredient supplier.
•Corporate and Other pretax earnings increased to $38.9 million in Fiscal 2021, primarily due to increased equity income from Ardent Mills.
Tax Benefit
•We had a tax benefit of $38.2 million which was $1.5 million better than the prior year.
•Our tax calculation is based on the mix of full year earnings, equity management decisions, careful tax planning and compliance with our cooperative tax obligations.
Segment Wrap Up
•In summary, CHS delivered net income of $554 million in Fiscal 2021 which was a 31% increase year-over-year.
•We are proud of this performance on behalf of our owners and how we served our customers around the world and created more connections to empower agriculture.
Equity Management
•Now lets talk about equity management….
•A key tenet to our cooperative system is patronage and equity.
•I want to start with a look back to 2021 cash returns to owners and reiterate our approach and how the year played out.
•At the annual meeting a year ago, we announced CHS would return $63 million in cash to owners:
◦$30 million in cash patronage.
◦ $33 million in equity redemptions.
•This decision was based on circumstances at the time:
◦we were less than a year into the COVID-19 pandemic;
◦energy demand was decimated;
◦margins were poor; and
◦there was a tremendous amount of uncertainty.
•We also assured members that our Board of Directors would evaluate opportunities to return more cash to owners later in the year if earnings improved.
•As the year unfolded, with stronger performance than originally anticipated, an additional $50 million in equity redemptions was announced after third quarter.
•Total Fiscal 2021 cash to owners was $109 million of which equity redemptions was $79 million.
•Moving to 2022, the Board has designated 10% of this year’s patronage-based earnings to the unallocated reserve.
•This year, CHS will issue patronage of $230 million in nonqualified equity certificates and the remainder in cash.
•During 2022, CHS intends to return $150 million to owners with:
◦$50 million in cash patronage.
◦$100 million in equity redemptions.
•Of the $100 million in equity redemptions:
◦$70 million will be distributed to member cooperatives.
◦$30 million is intended to be distributed to individual owners.
•The $70 million of member cooperative redemptions will be qualified equity certificates, starting with the oldest equity first. Payments will be made in the Spring.
•The $30 million will be used to fulfill individual owner requests from those age 70 and above and for estates.
•In addition, CHS has distributed $20 million in DPAD tax deductions to owners.
•Next, we will highlight a few wholesale patronage rates. What you see on the screen is both cash patronage and total patronage.
•Pause to let the audience read slide.
•Over the last 10 years, CHS has returned in excess of $2.7 billion cash to owners in cash patronage and equity redemptions.
•As always, in making equity management and patronage decisions, the Board considers:
◦What is in the best interest of CHS and its members.
◦The commitment to maintaining a strong balance sheet.
◦The outlook for the year ahead based on market dynamics.
•A strong balance sheet allows CHS to withstand periods of severe market volatility and unprecedented industry challenges such as we have seen this past two years.
•It also affords us the opportunity to invest capital for future growth and efficiency including supply chain investments, acquisitions and technology solutions that collectively benefit our member owners.
•As Chairman Schurr mentioned in his speech yesterday, the Board and management are currently assessing equity management considerations as we look at our capital structure and balance sheet strength for the future.
•We will be back in front of you on this matter over the next year.
Fiscal 2022 Outlook
•As we look ahead to Fiscal 2022, we are planning for the opportunities and the challenges of our global economy with significant supply chain and inflationary impacts and the associated volatility that may bring.
•However, we are confident in our ability to rise to these challenges and others that may come and we are excited about our future and collective success with our owners.
•We remain committed to financial excellence, continuous improvement and balance sheet strength, including cashflow optimization.
•We will also continue to invest in technology and in advancing our CHS operating model which will make it easier for you to do business with us.
Close
•In closing, I would like to reiterate that CHS has stayed financially strong and has navigated the circumstances we have faced, just as we have done throughout our 92-year history.
•With our focus on a strong balance sheet and your support, we are positioned for long-term growth.
•We have plans in motion to tap into our full potential by harnessing the power of CHS and the cooperative system to deliver value for you for decades to come.
•A sincere thank you for your business and for your continued commitment which empowers us to constantly strive for better on your behalf.
•I look forward to our collective future together and shared success.
Olivia Nelligan Executive Vice President & Chief Financial Officer
IMAG
FORWARD LOOKING STATEMENT This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, "forward‐looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward‐looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward‐looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, financial condition and results of operations, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward‐looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward‐looking statements. Therefore, you should not place undue reliance on any of these forward‐looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward‐looking statements are discussed or identified in CHS filings made with the U.S. Securities and Exchange Commission, including in the "Risk Factors" discussion in Item 1A of CHS Annual Report on Form 10‐K for the fiscal year ended August 31, 2021. These factors may include: changes in commodity prices; the impact of government policies, mandates, regulations and trade agreements; global and regional political, economic, legal and other risks of doing business globally; the impact of the ongoing COVID‐19 outbreak or other similar outbreaks; the impact of market acceptance of alternatives to refined petroleum products; consolidation among our suppliers and customers; nonperformance by contractual counterparties; changes in federal income tax laws or our tax status; the impact of compliance or noncompliance with applicable laws and regulations; the impact of any governmental investigations; the impact of environmental liabilities and litigation; actual or perceived quality, safety or health risks associated with our products; the impact of seasonality; the effectiveness of our risk management strategies; business interruptions and casualty losses; the impact of workforce factors; our funding needs and financing sources; financial institutions’ and other capital sources’ policies concerning energy‐related businesses; uncertainty regarding the transition away from LIBOR and the replacement of LIBOR with an alternative reference rate; technological improvements that decrease the demand for our agronomy and energy products; our ability to complete, integrate and benefit from acquisitions, strategic alliances, joint ventures, divestitures and other nonordinary course‐of‐business events; security breaches or other disruptions to our information technology systems or assets; the impact of our environmental, social and governance practices; the impairment of long‐lived assets; and other factors affecting our businesses generally. Any forward‐looking statements made by CHS in this document or the accompanying presentation are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to update any forward‐looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise except as required by applicable law.
Our Strategies Create an experience that empowers customers and makes CHS their first choice Grow market access to add value for our owners Evolve our core businesses by capitalizing on changing market dynamics Transform the business to unleash the enterprise
Key Enablers Agile and sustainable technology platforms Robust and efficient supply chains High‐ performing, diverse and passionate teams Operational excellence A strong balance sheet
$0 $10 $20 $30 $40 2017 2018 2019 2020 2021 Revenue ($ in billions) $38.4
$0 $150 $300 $450 $600 $750 $900 2017 2018 2019 2020 2021 $554.0 Net Income ($ in millions)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
2021 2020 Change Energy $ (10,596) $ 225,317 $ (235,913) Ag 298,096 53,724 244,372 Nitrogen Production 121,035 51,837 69,198 Foods 67,902 24,179 43,723 Corporate & Other 38,883 31,821 7,062 Pretax Income 515,320 386,878 128,442 Income Tax Benefit (38,249) (36,731) (1,518) Noncontrolling Interests (383) 1,170 (1,553) Net Income $ 553,952 $ 422,439 $ 131,513 CHS Net Income (in $ thousands)
IMAG
$230 MILLION NON‐QUALIFIED EQUITY CERTIFICATES Fiscal Year 2022 10% to unallocated capital reserve
$150 MILLION CASH RETURNS Fiscal Year 2022 $50 MILLION Cash Patronage $100 MILLION Equity Redemptions
$70 Million Member Cooperatives $30 Million Individuals Age 70+ EstatesOldest Qualified Equity First Fiscal Year 2022 $100 MILLION EQUITY REDEMPTIONS
CASH TOTAL Bulk fertilizer $3.45 $19.35/ton Soybeans $0.01 $0.06/bu Canola $0.21 $1.21/cwt Lubricants (oils) $0.14 $0.79/gal Patronage Rates
$2.7 BILLION CASH RETURNS in the last 10 years
IMAG