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0Cargill Confidential – For Presentation Only / Not for Distribution

Company Background

nourishing ideasnourishing peopleTM

Cargill is an international provider of food, agricultural and risk management products and services

• Founded in 1865 – 150 years old!• Largest privately owned company in the world• Revenues: $120.4 billion in fiscal year 2015• Operations in 67 countries• Employees: 153,000


North America53% of gross investment

Latin America13% of gross investment

Europe/Africa24% of gross investment

Asia/Pacific10% of gross investment

Our strength is our ability to connect expertise around the world…


We buy, process and distribute grain, oilseeds and other commodities to makers of food and animal nutrition products. We also provide crop and livestock producers with products and services.

We provide food and beverage manufacturers, foodservice companies and retailers with high-quality ingredients, meat and poultry products, and health-promoting ingredients and ingredient systems.

We provide our agricultural, food, financial and energy customers around the world with risk management and financial solutions.

We serve industrial users of energy, salt, starch and steel products. We also develop and market sustainable products made from agricultural feedstocks.

Cargill is composed of 75 businesses organized around four major segments.

Agricultural

Food

Financial

Industrial


Platforms and Business Units

6 Platforms74 Business Units

Cargill Agricultural Supply Chain

Cargill GOSCAmericas Marketing

Group

Cargill GOSCArgentina, Paraguay,

Bolivia Uruguay

Cargill GOSCAsia

Cargill GOSCAustralia

Cargill GOSCBrazil

Cargill GOSCGreater China

& Korea

Cargill GOSCNorth America

Cargill World Trading

CargillTropical Oils

Asia

Cargill Sugar

Cargill Cotton

Cargill GOSCEurope

CargillAgHorizons

Canada

CargillAgHorizons

United States

CargillAnimal Nutrition

Cargill Deicing Technology Cargill Salt

Frontier Agriculture

Ltd.(JV)

Cargill Animal Nutrition, Animal Protein & Salt

Cargill Beef

Cargill BeefAustralia

CargillCase Ready

Cargill Food Distribution

Cargill Meats Europe

CargillRegional Beef

Cargill Value Added Meats –Food Service

Cargill Kitchen Solutions

Cargill Meats Central America

Cargill MeatsThailand

Cargill BeefArgentina

Cargill Pork

Cargill Financial Services

CargillPower

North America

Cargill Risk Management

Cargill Trade & StructuredFinance

CargillPetroleum

Cargill Coal

Cargill Ferrous International

Cargill Ocean

Transportation

Cargill Energy, Transportation &

Industrial

Cargill Natural Gas North America

Cargill Biobased

Polyurethanes

Cargill BioFuels, BioIndustrial &

Emerging Business

Cargill Emerging Business

Accelerator

Cargill Industrial Oils

and Lubricants

Cargill Dressings,

Sauces & Oils

Cargill CocoaBrazil

Cargill Flour Mercosur

Cargill Foods Venezuela

Cargill Starches & Sweeteners

Europe

CargillTexturizing Solutions

CargillFoods Brazil

Cargill Food Ingredients and Systems

CargillRefined Oils

Europe

Cargill Cocoa &

Chocolate

Cargill Malt

Cargill FoodsRussia

Cargill Foods Turkey

CargillFlavor Systems

Cargill Starches & Sweeteners South America

CargillHealth & Nutrition

Horizon Milling(JV)

CargillCorn Milling

North America

Cargill Starches & Sweeteners

Asia

Cargill Toshoku

Cargill Refined Oils

Asia

Cargill Specialty

Canola Oils

Black RiverAsset

Management

CarVal Investors LLC

BUs maintained but not

associated with Platform

Renessen Feed& Processing

(JV)

NatureWorks LLC

North Star Steel

BlueScope JV

PGLA

Cargill Land Management

Cargill GOSCMideast / Africa

Cargill Value Added Meats –

Retail

Cargill Energy, Transportation

& Industrial Asia

Cargill Global Emissions,

EU Power & Gas Trading

Cargill Cocoa &

Chocolate NA

Cargill Foods India


It is all about execution:

Cargill’s Strategic Intent

• Customer FocusWe will become the partner of choice

• Innovation We will deliver ideas to our customers that are better than our competitors

• Talent Management We will select, develop and retain the best people

• Collaboration We will exploit the many connections within Cargill

• Accountability We will not let each other down. We will do what we say we are going to do.


To help ensure our continued success, we focus on four performance measures.

2 Satisfied customers1 Engaged employees

4 Profitable growth3 Enriched communities


Prepared by: SCO LTDate: October 2009

Specialty Canola OilsStrategy Analysis Report

Talent Implications


Industry & Competitors (11-1)

9/22/2017

Historical/Current•Canola Oil

Future/Anticipated•Oils Systems

Key Competitors•Bunge •Ventura•ADM

Emergent Competitors•Stratas (JV of ADM & ACH Foods)•Bunge•Ventura•Tate and Lyle•Danisco

Industry Definition: Oils


Industry Context: Oils (13-1)

9/22/2017

• Rapid pace of change in industry

•Changing Consumer Preferences

•Government regulations (trans-fats>saturated fats?)

• Customer (not consumer) brand strategies re: functionality, taste and mouth-feel.

•High Oleic Soy

•Fat Substitutes

Top Three Competitors:

A) Stratas

B) Ventura

C) Bunge


Environmental Assumptions: Oils (13-2)

Our strategy analysis is based on the following assumptions:Internal: •We can continue to successfully innovate in both the genetics and technical applications space to maintain a competitive advantage

External: •Need to continue to manage a “Closed Loop” system to maximize the value creation from the business.

This is different from our competitors because…•We are the only competitor to manage the entire value chain from Seed to Oil (closed loop system)

Tracking Systems/Milestones indicating that the assumption is correct/incorrect include:•Marketing Academy Tools, Innovation system, BTAP

If the external environment changes (i.e., our assumption is wrong), the following elements of our strategy will need to change…•Pace and direction of innovation

Key insights/resources required are:•Tech Service, Sales

9/22/2017


Strategic Intent: Oils (21-1)

9/22/2017

High Price Low Price

Integrated DeliverySystem

Portfolio

Price

CMany Offerings

Few Offerings

Not Integrated

Fully Integrated

A

C

+

-

=B

C

B

BA

A

A = StratusB= VenturaC= Bunge

= SCO

Why do our clients pay the higher price?

We must increase to maintain lead on competitors

We must move to get ahead of competitors


Evaluating Differentiators: Oils (21-3)

Valuable X Executable Defensible

Ability to deliver a wide-ranging integrated solution is already highly valued by our customers

“If only Cargill knew what Cargill knows.” The lack of integration creates missed opportunities.

Cargill’s breadth of offerings is difficult to duplicate by others

9/22/2017

Portfolio-System

Organizational Implications: Places premium on the ability to marketing technology and sales to interface effectively

Talent Implications: Collaboration as a critical capability-tight linkages between technology, marketing and sales


Strategic Resources (23-5)

Our strategic resources • Technology (Cargill term for R&D)• Cargill Brand• Unique Relationships with Plant Breeders, etc.

Competitors’ most important strategic resources• Technology (Cargill term for R&D)• IP Management• Lower cost structure

9/22/2017


Strategic Resource Evaluation (23-6)

• Cargill– SCO is a virtual BU, we outsource to other parts of

Cargill substantial portions of our value chain– SCO has to be very good at collaboration, within

the BU and across other BUs

9/22/2017

Organizational Implications: SCO is in a symbiotic relationship with GOSC, CAH, DSO

Talent Implications: Collaboration is a Pivotal capability for many people within SCO-especially Leadership

BuildLeverageProtect


Business Processes (28-1a)

SCO Value Chain:

9/22/2017

MarketingPlant

BreedingTechnology DistributionSalesRefiningCrush

ContractGrowing

Seed Production

Capture Customer

Value


Business Processes Constraints (28-1a)

SCO Value Chain:

9/22/2017

3 233 333 555

MarketingPlant

BreedingTechnology DistributionSalesRefiningCrush

ContractGrowing

Seed Production

Capture Customer

Value


9/22/2017

Constrained Process: Sales

Identify Customer

Need

Secure Sales

Contract

Present Value

Proposition

Report Sales/Future Obligations

2 41

Critical Constraint

4

2

Sales

Sales Sub-Process Constraint


Constraint Implications (28-6)

9/22/2017

Description of the constraint: Identify Customer Needs

Consequences of constraint: we don’t sell enough specialty oil unless the sales people consult with customers to understand their processes and help the customer identify where our solutions can grow their businesses.Strategic response(s) to the constraint:1. Volume: Increase number of consultative sales people

2. Leverage/Allocation: increase quality of management of consultative sales people

3. Substitution

Organizational Implications: Tight linkages between sales, marketing and Tech Service are necessary.

Talent Implications: Consultative sales people are quality pivotal


Defining Growth Strategies: Oils (24-6)

Total of each row

Frying 0 0 5 5

Baking 0 4 16 20

Food Service 5 10 60 75

Total of each

column

5 14 81100 points

9/22/2017

ProductLine

DensityProduct

PresenceHit

Rate

= xSales

Volume(Units)

MarketSize

MarketShare

Improving “identifying customer need” would enhance our Hit Rate,which drives Sales volume


Integration: Strategy to Implications (31-2)

9/22/2017

Strategic Analysis Lenses Strategic Pivot Points Pivot Points

• What will have to change the most for us to achieve our growth targets (e.g., product line density, product presence, pricing, etc.)?

• Where are the leverage points in the revenue model?

• Where does the performance of specific business processes (or sub-processes) most directly limit the results we intend to achieve (i.e., which process constraints are most critical)?

• What will differentiate us in the marketplace?• What will we win, attack, or monitor?• What is the most critical issue with respect to

the differentiators (i.e., valuable, executable, and defensible)?

• Where does having greater insight into the industry context, customers, competitors, and organizational capabilities create sustainable success?

• What resources provide advantage in the Input Market, Conversion/Production, or Output Market?

• What is the critical issue: Build, Leverage or Protect?

15-121-121-3

11-113-113-2

23-523-6

28-1a28-1b28-6

24-124-6

• Product Mix• Product Functionality• Seed Traits

• Portfolio

• Leverage processes and IP to deliver substantially higher Hit Rate

• Sales

• Hit Rate is where we are focused due to the cost prohibitive nature of product development, so Hit Rate has to be very high


9/22/2017

StrategicAnalysis Lens

Strategy ExecutionOrganizational Implications Talent Implications

• Paramount importance of Market Perspective to ensure we are focused on the right products

• Consultative Sales as critical talent-gathering customer and market intelligence

• Critical linkage between customer facing cadre

• Critical linkage between SCO and sister BUs • Management of the technology resources

• Sales Processes

• Linkages between sales, marketing and technology must work flawlessly

• Management of technology resources as important capability

• Management of relations with sister BUs as important capability

• Project Management as important capability

• Sales Process management as pivotal capability

• Collaboration as a critical capability

• Collaboration as a critical capability• Deep understanding of the value chain,

how it works and role each part plays becomes critical skill

Integration: Strategy to Implications (31-2)


(Potentially) Pivotal Talent Pools

Consultative Sales

Why pivotal?We need to understand our customers business goals and sell the emotional benefits of our oils. We also need ‘boots on the ground’ in the marketplace providing market intelligence to Marketing.

9/22/2017


Other Pivotal Talent Implications

Collaboration as Pivotal Capability

Why pivotal?– Virtual BU-rely on other Cargill BUs to manage large parts of our

value chain. – We partner with other Cargill BUs to develop products and solutions for

customers e.g. CTS and Citrus fiber as substrate for low saturate fat substitute in pudding.

9/22/2017


Other Pivotal Talent Implications

Management of Technology

Why pivotal?– Several roles in technology appear to be pivotal– Some of these roles are quality and quantity pivotal– Being able to attract, retain and engage these people is pivotal.– Therefore, management of these people is critical.

9/22/2017


The HR Response?

Change:

– Different market reference point for Pivotal Roles– Different qualification profile for Pivotal Roles– Differential Development for Pivotal Roles– Differential Incentives for Pivotal Roles– Particular focus on quality of Management and Leadership for Pivotal

Roles– Selection across all leadership and management roles for critical

capability of Collaboration– Training in how to most effectively collaborate (what is the requisite

competency for SCO?)

9/22/2017

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