Joint Ventures with International Partners

1
Joint Ventures with International Partners

• November 7, 2005

2
CHS Inc.Who Are We?

• Farmer Owned Cooperative
• 12 Billion in Sales
• 5,700 Employees
• Domestic and International Business

3
History of Joint VentureVentura Foods

• Holsum Foods (CHS)
• - Oil Based Foods
• - Acquisitions
• - 100 Owned
• Wilsey Foods (Mitsui)
• - Oil Based Foods
• - Acquisitions
• - Large Customer of (CHS)

Duplication Synergy Potential
4
1st Joint Venture Tasks

• CEO to CEO
• Reason for Joint Venture Vision
• - National (Size and Scale)
• Agree on Basic Issues
• - Governance
• - Ownership

5
Formation of Joint Venture

• Open Communications
• Mutual Benefit
• Trust Between Partners

6
Hurdles to Overcome Beyond Business

• Culture
• US Farmer Owned Cooperative
• Global Japanese Corporation
• 50/50 Partnership
• Board Trip to Tokyo, Japan

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Completed Deal August 1996

• 350 Million Sales
• 8.5 Million Profits

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TODAY

• 1.2 Billion Sales
• 60-70 Million Profits

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• Excellent Results
• Relationship Strong
• Platform for CHS Food Business

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United HarvestCHS / Mitsui
11
Grain Export Joint Venture

• Vancouver / Kalama
• - PNW
• - Rail - Shuttles

12
Mitsui Brought

• Terminal
• Global Customers

13
CHS Brought

• Terminal
• Grain Origination
• Terminal Transportation Expertise

14
Objections

• Terminal Efficiencies
• Origination / Export Partnership
• Financial Reasons

15
International Partners

• Similar to Domestic
• Common Objectives
• Open Communication
• Trust Between Partners
• Respect of Cultures

16
Thank You!