CONFIDENTIAL. This document contains Cargill Confidential information. Disclosure, use or reproduction outside Cargill or insideCargill, to or by those who do not have a need to know is prohibited. © 2019 Cargill, Incorporated. All rights reserved.

Cargill/CMCE presentation at QED conference:Agricultural Commodities

19th March 2019

Commodity Markets Council Europe

• CMCE is an association representing a range of commodity market participants - agriculture, energy, metals and other commodity derivative end-users, price reporting agencies, and trading venues. Its members are established and operate in the EU, EEA, Switzerland and neighbouringcountries

• Active in Europe since 2012, CMCE engages with EU and national policy-makers and regulators to promote well-functioning commodity derivative markets

2Agricultural Commodities

© 2019 Cargill, Incorporated. All rights reserved. 3

With

150,000employees

3

located in

70countries

our purpose is singular:to be the global leader in nourishing people

Over

years of experience

150

Agricultural Commodities

Cargill, our company

© 2019 Cargill, Incorporated. All rights reserved.

Agri commodities supply chain and the role of commodity firms

4Agricultural Commodities

Origination Processing Risk Management Distribution

• Commodity firms work to meet the challenge of matching supply of commodities with demand by organizing the supply chain and managing associated risks

• This includes originating, transporting, storing and transforming commodities • They seek to reduce costs through improving and optimizing supply chain

logistics, involving ownership of physical assets or facilities

Storing

© 2019 Cargill, Incorporated. All rights reserved.

Our businessWe provide insights to our partners

We transform raw materials into finished goods

We move products around the world

Insights

Transform

Move

Farmers

Customers

For farmersWe supply feeds, other inputs and expertise to farmers, and buy crops and livestock from them

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

For customersWe deliver finished goods to customers in the foodservice, retail, consumer packaged goods and industrial sectors

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Animal protein

Food ingredients

Animal nutrition

Branded foods

Bioindustrials

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Data analytics

Market expertise

Financial solutions

Risk management

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Insights

Transform

Move

Farmers

Customers

Roads Rail Rivers Oceans

All risk elements must be managed along the chain

OriginationWorld vs

local price, storing, drying, finance

LogisticsRail, truck,

barge

ProcessingCapacity

value, margin mgmt,

industrial efficiency,

world price

DistributionWorld vs

local price, ocean

freight, FX, counterparty risk, political

risk…

Risks accumulated in the value chain

Agricultural Commodities

FARMERSHigh price

expectationsFertilizer,

seed, land, equipment,

weather

END USERSLow price

expectationsWorld vs local price, quality, competitive

differentiation,

Megatrends

Disruptors

Econ

omics

DemographicsCONSUMER TRENDS

Agriculturalsupply C

limate

WEATHERGeopolitics & governments

Logistics bottlenecksUnforeseen events

The world of triggers

VOLATILITY

© 2019 Cargill, Incorporated. All rights reserved.

Managing price risk through futures markets: case of a rapeseed processor

Hedging riskHedging protects value chain actors

from fluctuating price movements

Conclusions

8Agricultural Commodities

• Liquid and well-functioning global derivative markets are essential for allowing commodity firms to hedge some of the risks related to their physical activities and assets, in particular price risk in the commodities that they buy and sell

• The use of the derivative markets:• Makes trade and processing of agriculture commodities more transparent and efficient, and provides

for predictable prices • Helps maintain stable food prices and provide products at a reasonable cost to consumers

• Allow commodity firms, producers, farmers and retailers to plan ahead, and therefore to be better equipped to invest and help the economy grow

© 2019 Cargill, Incorporated. All rights reserved.