WELCOME TO GOLDEN GRAIN ENERGY 2016 ANNUAL MEETING Statement of Order of Business And Opening of Polls Dave Sovereign Chairman of the Board GOLDEN GRAIN ENERGY Call to Order, Determination of Quorum, Statement of Order of Business and Opening of Polls Dave Sovereign Chairman of the Board Proposal #1 ELECTION OF DIRECTORS Nominating Committee Report & Candidate Introductions Jim Boeding Duane Lynch GOLDEN GRAIN ENERGY Proposal #1 ELECTION OF DIRECTORS Nominating Committee Report & Candidate Introductions Duane Lynch Jim Boeding Ray Wiley Financial Overview Fiscal Year Ending 10/31/14 Christy Marchand CFO GOLDEN GRAIN ENERGY Financial Overview Fiscal Year Ending 10/31/15 Christy Marchand, Chief Financial Officer GOLDEN GRAIN ENERGY10/31/1410/31/13 Current Assets$ 70,279,557$ 14,051,401 Property & Equipment (Net)59,644,34066,114,201 Other Assets37,633,91829,332,147 Total Assets167,557,815109,497,749 Current Liabilities7,791,9728,323,526 Long-Term Debt542,2823,285,499 Members Equity159,223,56197,888,724 Book Value Per Unit$ 8.01$ 4.92 GOLDEN GRAIN ENERGY 10/31/1510/31/14 Current Assets$ 47,036,908$ 70,279,557 Property & Equipment (Net)62,130,54859,644,340 Other Assets28,987,86437,633,918 Total Assets138,155,320167,557,815 Current Liabilities8,114,5787,791,972 Long-Term Debt476,962542,282 Members Equity129,563,780159,223,561 Book Value Per Unit$ 6.52$ 8.01 Income Statement Summary GOLDEN GRAIN ENERGY Revenue$ 289,152,549$ 350,721,175$ 2.4 billion Gross Profit$ 63,817,010$ 12,706,511$ million Operating Income$ 60,247,858$ 10,156,275$ million Net Income$ 79,279,537$ 14,183,028$ million Net Income per unit$ 3.99$ 0.69$ Distributions$ 0.90$ 0.10$ 3.65 Taxable Income per Unit$ 4.32 (estimate) $ 1.43$ 8.56 GOLDEN GRAIN ENERGY Income Statement Summary Revenue$ 221,149,134$ 289,152,549$ 2.6 billion Gross Profit$ 26,932,672$ 63,817,010$ million Operating Income$ 23,524,718$ 60,247,858$ million Net Income$ 31,946,519$ 79,279,537$ million Net Income per unit$ 1.61$ 3.99$ Distributions$ 3.10$ 0.90$ 6.75 Taxable Income per Unit$ 1.22 (estimate) $ 4.31$ 9.78 Taxable Income 2014 K-1s should be in the mail Monday Feb 23 rd 2014 K-1s should be in the mail Monday Feb 23 rd Taxable income since inception has been about $8.56 vs. book income of $ At a 50% tax bracket GGE members have paid $4.28 in tax but have received $6.25 in distributions Taxable income since inception has been about $8.56 vs. book income of $ At a 50% tax bracket GGE members have paid $4.28 in tax but have received $6.25 in distributions Is your accountant tracking your basis? Is your accountant tracking your basis? GOLDEN GRAIN ENERGY Taxable Income 2015 K-1s should be in the mail Monday Feb 22 nd. Need it electronically? CALL! Taxable income since inception has been about $9.78 vs. book income of $ At a 50% tax bracket GGE members have paid $4.89 in tax but have received $7.45 in distributions (to date) GOLDEN GRAIN ENERGY Taxation of K1 income vs Distributions Taxed on your distributive share of the companys income This is NOT the cash distribution received This IS all the other items shown on the K1 Pay tax on income regardless of amount of cash received Distributions are not taxable unless they exceed your tax basis in the LLC CASH RECEIVED FROM GGE ISNT TAXABLE ! GOLDEN GRAIN ENERGY Cumulative tracking of your tax Determines deductibility of losses, gain/loss on sale of units, taxability of distributions Computation Income/losses from the K1 Tax exempt income/Non-deductible expense Capital Contributions Cash Distributions NOT shown on the K1. You are responsible for tracking. Ask your tax preparer for a schedule! Tax Basis GOLDEN GRAIN ENERGY Net Investment Income Tax 1411 tax Tax years beginning after 12/31/ % surtax on Net Investment Income Threshold amount Individuals - $200,000 (S) / $250,000 (MFJ) Investment income is: Interest, dividends, capital gain Passive Investment income (ie LLC investments) Dividend History GOLDEN GRAIN ENERGY 2006 $ $ $ & 2010 $ $ $ $ $ $2.60 TOTAL$6.25 GOLDEN GRAIN ENERGY Dividend History 2006 $ $ $ & 2010 $ $ $ $ $ $ $0.70 TOTAL$7.45 Financial Ratios GOLDEN GRAIN ENERGY * Average is post expansion project completed in Average Per Year Return on Assets72%12%23% Return on Equity81%14%32% Return on Investment399%71%104% Income per Gallon$0.70$0.12$0.26 Income per Bushel$2.03$0.35$0.73 Gallons Sold113.2 million117.0 million111.7 million * Bushels Ground38.9million40.4 million39.5 million * DDGs Sold285,000 ton315,000 ton310,000 ton * Corn Oil Sold23.6 million lbs28.3 million lbs16.6 million lbs GOLDEN GRAIN ENERGY Financial Ratios Average Per Year Return on Assets19%72%23% Return on Equity20%81%30% Return on Investment161%399%109% Income per Gallon$0.27$0.70$0.26 Income per Bushel$0.79$2.03$0.73 Gallons Sold118.0 million113.2 million112.5 million * Bushels Ground40.4 million38.9million39.6 million * DDGs Sold276,000 ton285,000 ton310,000 ton * Corn Oil Sold26.4 million lbs23.6 million lbs18.0 million lbs * Average is post expansion project completed in 2007 Economic Impact GOLDEN GRAIN ENERGY2014 Since Inception Average Per Year Ethanol Revenues$ 240 Million$ 1.9 Billion$ 193 Million DDG Revenues$ 46 Million$ 385 Million$ 38.5 Million Corn Oil Revenues$ 7.5 Million$ 36 Million$ 6.0 Million Payments for Corn$ 171 Million$ 1.65 Billion$ 165 Million Wages & Benefits$ 4.7 Million$ 32.7 Million$ 3.0 Million Misc Vendor Payments$ 48.5 Million$ 692 Million$ 64.3 Million Distributions to Members$ 17.9 Million $0.90/unit $ 85.0 Million $3.65/unit $ 8.5 Million Average $0.37/year GOLDEN GRAIN ENERGY Economic Impact2015 Since Inception Average Per Year Ethanol Revenues$ 176 Million$ 2.1 Billion$ 191 Million DDG Revenues$ 38 Million$ 423 Million$ 38.5 Million Corn Oil Revenues$ 7.1 Million$ 43 Million$ 6.1 Million Payments for Corn$ 151 Million$ 1.8 Billion$ 163 Million Wages & Benefits$ 4.5 Million$ 37.2 Million$ 3.7 Million * Misc Vendor Payments$ 34.1 Million$ 726 Million$ 60.5 Million Distributions to Members$ 61.6 Million $3.10/unit $ Million $6.75/unit $ 13.3 Million Average $0.61/year * Average is post expansion project completed in 2007 Gallons of Ownership Per Unit * Based on 24,460,000 outstanding units with the exception of GGE (which is based on average of units over the years) ^ Previously held through a subsidiary of RPMG but was broken apart during 2012 GOLDEN GRAIN ENERGY GallonsInvestmentCost Per Unit*Gallons/Unit2014 ROE GGE Production115 M$56 M$ % Absolute Energy115 M$5 M$ % Homeland Energy Solutions 130 M$4 M$ % KAAPA ^60 M$605k$ % Bushmills Ethanol ^55 M$605k$ % Guardian Energy115 M$1.5 M$ % TOTALS M$0.84/gal$ GOLDEN GRAIN ENERGY Gallons of Ownership Per Unit GallonsInvestmentCost Per Unit*Gallons/Unit2015 ROIE GGE Production117 M$56 M$ % Absolute Energy115 M$4 M$ % Homeland Energy Solutions 130 M$5 M$ % KAAPA ^60 M$605k$ % Bushmills Ethanol ^55 M$605k$ % Guardian Energy115 M$1.5 M$ % Lawrenceville Tankn/a$550k$ 0.03n/a18% TOTALS M$0.84/gal$ ^ Computed on cash basis vs. equity method of accounting Operations Update 2014 Calendar Year Chad Kuhlers, Chief Operations Officer GOLDEN GRAIN ENERGY Operations Update 2015 Calendar Year Chad Kuhlers, Chief Operations Officer GOLDEN GRAIN ENERGY Plant Efficiency and Productivity Update Curt Strong, Executive VP/Commodities Mgr GOLDEN GRAIN ENERGY Wrap Up Questions? GOLDEN GRAIN ENERGY Questions? Closing Remarks GOLDEN GRAIN ENERGY Clos Closing Remarks GOLDEN GRAIN ENERGY Clos Closing Remarks GOLDEN GRAIN ENERGY Clos Closing Remarks GOLDEN GRAIN ENERGY Clos Report of Election Results Dave Sovereign Chairman of the Board GOLDEN GRAIN ENERGY Report of Election Results, Closing Remarks & Adjournment Dave Sovereign Chairman of the Board Thank you for your continued support GOLDEN GRAIN ENERGY Thank you for your continued support