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HomeMy WebLinkAboutAppendix X- Renewable Fuels Group Information with Bios ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group Who is FCStone: FCStone is a recognized innovator in commodity risk intelligence, providing companies around the world with sound management strategies that are designed to minimize risk and maximize profit margins. FCStone has roots dating back nearly 80 years from Saul Stone Corporation and Farmer Commodities Corporation. With 16 domestic offices, 5 international offices and employing 450 people, the company has approximately $1 billion in assets and is a publicly traded company on the NASDAQ. The company began as a coop with ownership representing 5,500 elevator locations and originating 80% of the U.S. corn crop. On the futures front, we hold one of the largest open interest in the grain complex on a daily basis on the CBOT. We are one of the largest clearing member’s on the NYBOT and the NYMEX. FCStone’s commercial clients generally range in size from those with annual sales of several million dollars to multi-billion dollar companies. Many are involved in the production, processing, storage, sale distribution or end-use of commodities in their normal course of business. Below is a map to depict FCStone’s clients, office’s and corporate headquarters. FCStone’s Renewable Fuels Group provides in depth analysis on day-to-day risk factors that are associated with ethanol and other renewable manufacturing facilities. Managing risk is crucial on inputs as well as output products. These commodities include grain(s), energy(s), feedstock’s and transportation. FCStone has developed programs specifically for ethanol plants to mitigate the inherent risk associated with the ethanol industry and focuses on the crush margin relationship of the industry. The Renewable Fuels Group presently manages risk for 19 biodiesel facilities ranging from 5 – 100 million gallon annual capacity. In 2007, FCStone managed risk on over 600 million gallons of bio-diesel and over 4.5 billion pounds of feedstock. With current 2008 construction in progress, FCStone Renewable Fuels Group will, at a minimum, manage risk on 630 million bushels of corn and 1.7 billion gallons of ethanol. For the end-user bio-diesel or ethanol blender we provide in-depth market analysis and knowledge within the energy complex. FCStone utilizes new innovative risk structures to mitigate bio-diesel and/or ethanol prices. ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group What We Do at FCStone: The companies within our firm offer a full spectrum of risk management services at every stage of the commodity value chain: • Policy decisions and its commodity impact • Physical commodity origination and commodity basis analysis • Logistics expertise and transportation analysis • Merchandising and production analysis through processing wholesale and retail markets • Fundamental commodity market analysis and its impact on flat prices and spreads • Formalization of internal risk parameters and establishment of risk profile • Provider of market strategies and execution services based on agreed upon strategies • Credit and its impact of hedging programs • Risk Management Education We service customers and markets in North America, Latin America, South America and the Far East. We are members of all the major U.S. futures exchanges and are regulated by the CFTC and the NFA on a daily basis. We service over 2,000 accounts and have on retainer over 450 companies on either our monthly Integrated Risk Management Program (IRMP) or Consulting program. On our last third party customer survey, we received over an 85% response rate and very high marks from our customers. Our website is located at www.fcstone.com. Industry Served: FCStone serves many different industries with specialist working within the various industries served. Industry include but are not limited too energy, renewable fuels, commercial grain facilities, grain and feedstuff’s exporters, grain and feedstuff’s importers, livestock and poultry industries, lumber and pulp, weather, food products and services, dairy products, transportation, cash grain and feedstuff’s merchandising, currency markets and industrial. The Same Side of the Desk: FCStone Group clients benefit from the counsel of our distinguished management team of commodities experts. Their firsthand knowledge of the industry enables us to continually develop new products and services designed to serve our clients' best interests. In fact, every risk management program we develop puts our client's bottom line first and foremost. As an impartial third party, our sole agenda is to provide: • Astute risk management strategies, grounded in market intelligence; using the practical operation and application of historical basis trading • Objective advice on choosing the best risk management instruments and cost effective strategies • Sound recommendations that help minimize risk and maximize utilization of facilities, operations and profits • Sensible reasoning in regard to the risk & reward of the hedging program recommendations versus the projected and possible market fundamentals • Customer accountability enforced by our month-end and year-end reviews Type of Programs: We can provide market execution and market information. Additionally, we can provide a full service approach with our Integrated Risk Management Program (IRMP). Specifically, this solution provides the following: A. Integrated Risk Management Program (IRMP) • Business Analysis o Historical view of expenses, revenues and operations o Monitor input and output values & consider credit capacities o Review operational capacities o Analyze history of P&L statements o Consult on geographic considerations ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group • Applied Market Research o Check and compare pertinent business data against our proprietary historical pricing & basis data o Forecast potential annual volumes o Forecast out forward vales related to the ethanol crush margin • Strategic Planning o Apply proprietary research and intelligence to various scenarios for effective risk management o Produce specific recommendations regarding: ƒ Origination & marketing programs ƒ Which risk management instrument is appropriate & applicable ƒ Transportation & logistics ƒ Credit lines & Credit capacity ƒ Risk management policy • Program Management o Continuous reporting and feedback on current market conditions o Continual updates on the program performance, quantifying the effect on the client’s bottom-line o Analytical reporting ƒ Monthly activity positions and financial reports ƒ Annual reporting and reviews including a quantified report from a historical perspective ƒ Year to date pertinent statistics ƒ Positions detailed as they relate to the strategic plan ƒ Specific hedged inventory value defined • Risk Education o Applied market research o Educational seminars o On-site training sessions • Month-End Review o Specific commodity Review and Performance o Current Position Recap o Monthly Liquidations Recap o Year-to-Date Summaries • Year-End Review o Specific Commodity(s) Review o Year-to-Date Summaries per Commodity o Program summary and Performance B. Commodity Execution and Clearing • Clearing Firm o FCStone has seats and clearing membership on all major exchanges (CBOT, NYMEX/COMEX, NYBOT, KCBOT, CME and MGEX); staffed by professionals dedicated to delivering timely and efficient order executions, consistent value-added service, and precise accounting. o FCStone utilizes various financial and physical risk mitigation instruments. Each instrument is utilized within various capacities according to risk profile, market parameters, market bias, and capital utilization. ƒ Exchange Traded Futures ƒ Exchange Traded Options ƒ Over-the-counter (OTC) Derivatives ƒ Cash Contracts ƒ Basis Contracts ƒ Other Origination Contracts ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group C. Market Letters and Access to Proprietary Research D. Specific One-time or Periodic Risk Assessments • Implementation of Corporate Commodity Risk Policies • Implementation of Historical Stress Test or Value at Risk Reporting Systems • Coordination of Commodity Risk Strategies with Risk Policies and Reporting Systems FGDI: FCStone has an in-depth understanding of every stage of the commodity value chain – from policy decisions to origination, merchandising and production through processing, wholesale and retail. At FCStone, we routinely deal with transportation logistics through our FGDI division. For the end-users, processors and exporters, FGDI provides a dedicated and efficient method of finding or assembling the feedstock’s they require. The group also assures consistent delivery to match buyers’ needs. Because FGDI works closely with a wide range of customers on both sides of the supply/demand equation, we are able to regularly link customers in mutually beneficial transactions. This helps establish regular, long-term relationships between origination and consumer-based customers. We can manage railcar acquisition and provide procurement services, including tariff and rate information your organization may require. FGDI is one of the largest railcar shippers on the UP, CSX and BN rail-ways. FGDI manages the logistics of 19 grain facilities along the UP rail line. In addition, FGDI logistically transport grains, grain products, oilseeds, vegetable oils and edible beans within the eastern regions of the belt. The FGDI division procures and ships the largest amount of food grade edible beans to the Far East through the Port of Mobile. The most comprehensive services are offered under the Integrated Transportation Program, and intensive, professional, consultative relationship in which the group takes on the major responsibility of the customer’s complete transportation program– including demurrage, rate negotiations, leasing and traffic management. Other customers utilize the group’s short- term, on-demand services: planning and strategic consulting, freight brokerage, short-term rail car leasing, and rate and traffic assistance. FCStone Merchant Services: FCStone Merchant Services, LLC is the company’s commodity financing and arbitrage arm. Merchant Services functions at the convergence of the banking, commodity, capital, and insurance markets by offering clients specialized financing through inventory repurchase arrangements, transactional commodity finance arrangements and processing and tolling arrangements. Merchant Services can provide incremental, structured commodity financing to clients as an adjunct to their established banking relationships. Their goal is to help clients to optimize their fixed assets, such as storage facilities, terminals, pipelines and processing facilities. FCStone Financial offers the Repurchase Program for grain hedgers to help finance physical grain inventories. The Sale/Repurchase Program is approved for use in the States of Iowa, Illinois, Indiana, Kansas, Oklahoma, Texas, Nebraska, Colorado, Ohio, Minnesota, Wisconsin and South Dakota. Three years of audited financial information is required for the participating company to become qualified and receive their tiered rating. Participating companies are rated according to their financial condition in one of four pricing tiers. Qualifying entities will receive up to 90% of the sale value of the company owned inventory. This allows all basis gains (or losses) to be controlled by the participating company. This tool helps entities expand their credit capacity in order to capture those basis gains, especially at a time when normal credit lines may be tight. Warehouse receipts are used as collateral with hedges held in a segregated account. Rates vary according to the financial strength of the individual elevator, and are based off the prime rate each month. ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group The following is an overview of how FCStone utilizes its inherent strength in risk management to minimize risk and maximize revenue for biodiesel manufacturers. The objective is to effectively manage the crush margin or basis positions. Feedstock Procurement – Input Cost Starting at square one, an in-depth analysis is done on the feedstock of choice and availability to the crushing/processing facility (plant). Does the plant have enough of a locally grown/processed market to obtain the needed feedstock(s) within its draw area or does the facility need imports of feedstocks? Basis analysis is done on each viewpoint and the data incorporated into the assumption sheet for cash ownership of the feedstock. We analyze basis levels along with market levels from the Chicago Board of Trade (CBOT), options versus the CBOT and versus the derivative market to establish a price point that eventually is the starting point for input costs. This level is then input into the proprietary crush margin sheet that FCStone utilizes in the overall scheme of crush margin management. Along with the known values of the CBOT or the derivative market, FCStone utilizes its proprietary data base for price discovery of the feedstock’s. Market analysis is prepared on the present Supply/Demand for further price discovery. We evaluate the past price history in comparison to present price Carry-Out to Usage ratios (CO/Use) to formulate market direction. Along with this, FCStone utilizes the vast network of elevator clients (in excess of 5,000) and export clients to garner day-to-day market conditions in cash markets. This is all incorporated into the business analysis for each plant individually, taking into consideration the local market conditions. The business plan is implemented on a rolling three-twelve (3-12) month market parameter. When the market conditions warrant, further coverage can be implemented through structures to procure priced feedstock in either the cash market or the structured markets. Coverage of feedstock’s can go out forward 12-18 months if market conditions so warrant. This is the starting point of the crush analysis. Feedstocks on average are 80-88% of the input costs of a plant. CBOT Bean Oil Twelve Month Strip Average Lower 30% Level 15 19 23 27 31 35 39 43 47 51 55 59 63 67 71 75 Jan-04Apr-04Jul-04Oct-04Jan-05Apr-05Jul-05Oct-05Jan-06Apr-06Jul-06Oct-06Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Cents per Pound ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group Bio-diesel Marketing – Revenue Working in close proximity with a bio-diesel marketer, FCStone looks at each individual off-take sale from the spot market to any deferred sales. These values are factored into the crush calculator to get a trend-line crush value. We will also evaluate the forward Heating Oil market and evaluate the “strip” value versus biodiesel basis levels out forward. There may/will be times that bio-diesel sales will be better as Heating Oil Plus contracts then straight bio-diesel sales contracts or vice a versa. FCStone’s internal data base and price history along with the bio-diesel marketer can formulate market direction of bio-diesel basis levels. This gives the plant a much more broad based opportunity to sell the bio-diesel its producing. When bio-diesel is sold as a “Heating Oil Plus” or a basis to the Heating Oil(HO) contract, FCStone can mitigate HO exposure via the New York Mercantile Exchange (NYMEX) or even more specifically via an over the counter derivative. Bio-diesel sales can range from 3- 12 months for price discovery; however, with the HO market and an assumed basis, a bio-diesel value can be determined in a more distant time frame. The bio-diesel sales will be roughly 80-88% of the revenue base of a plant. US Average Biodiesel & Spot NYMEX Heating Oil 0 40 80 120 160 200 240 280 320 360 400 440 480 520 Jan-04Apr-04Jul-04Oct-04Jan-05Apr-05Jul-05Oct-05Jan-06Apr-06Jul-06Oct-06Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08(Biodiesel & NYMEX HO) Cents per Gallon0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 (Biodiesel - NYMEX Heating Oil )Cents per GallonBiodiesel NYMEX HO Spread ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group NYMEX Heating Oil Twelve Month Strip Average Top 70% Level 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 Jan-04Apr-04Jul-04Oct-04Jan-05Apr-05Jul-05Oct-05Jan-06Apr-06Jul-06Oct-06Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Cents per Gallon Glycerin Marketing – Revenue Through relationships built with glycerin end-users, FCStone is able to facilitate glycerin transactions between the client and end-users directly. End-users typically purchase long-term contracts, arrange their own logistics, and offer flat price packages. FCStone assists clients in the sales of their glycerin. ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group Summation FCStone has the tools and personnel that allows it to manage margins in the ethanol industry through its in-depth research and broad based cash market knowledge in all sectors of the processing cycle. Ethanol facilities are no different than any other margin related business if proper procedures and guidelines are followed. Margin management is the foundation of the FCStone IRMP business model. The slide below is a chart of historical crush margins that incorporate ethanol on a national average rack price, corn on a national average cash price, NYMEX based natural gas and co-product on a Chicago priced basis. As witnessed by the slide, profitability is in this industry. CBOT/NYMEX Crush Margins -2.00 -1.80 -1.60 -1.40 -1.20 -1.00 -0.80 -0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 Jan-04Apr-04Jul-04Oct-04Jan-05Apr-05Jul-05Oct-05Jan-06Apr-06Jul-06Oct-06Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Oct-08((Heating Oil + $1.00) + Glycerin Revenue)-(CBOT Bean Oil + Methanol+Catalyst)-($0.31 Fixed Costs)Dollars per Gallon ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group Biographies of team members within the Renewable Fuels Group Peter J. Nessler, Jr. –Vice President, Renewable Fuels Group, FCStone, LLC Peter Nessler graduated from the University of Illinois in 1981 with a BS degree in Agricultural Industries. He worked for AGRI- Industries as the assistant Soybean hedger for the company ownership. In addition, he worked with elevators that were part of the AGRI-Mart program. This program provided risk management for both commercial and private grain elevators. In the fall of 1982, Mr. Nessler began working for FCStone, LLC which at the time was known as Farmers Commodities Corporation. He has been a Risk Manager now for over 26 years at FCStone, LLC. Peter is the Vice President of the Renewable Fuels Group. This group works with companies in the renewable fuels industry on all facets of risk management. FCStone’s Renewable Fuels Group provides in depth analysis on day-to-day risk factors that are associated with ethanol and other renewable manufacturing facilities. Managing risk is crucial on inputs as well as output products. These commodities include grain(s), energy(s), feedstocks and transportation. FCStone has developed programs specifically for ethanol plants to mitigate the inherent risk associated with the ethanol industry and focuses on the crush margin relationship of the industry. David Smoldt – Vice President of Operations, FCStone, LLC David Smoldt has been with FCStone for 22 years after graduating from Iowa State University in 1985 with a Bachelor of Science degree in Agricultural Business. David is Vice President of Operations for FCStone. He also serves as a Risk Management Consultant to clients in the both the agricultural and energy industries. David provides risk management to ethanol clients producing a combined total of 500 million gallons of ethanol, which consumes 180 million bushels of corn and he manages price risk for grain elevators handling a combined total of 100 million bushels of corn. David also works with publicly traded Fortune 500 clients protecting their commodity price risk. Jason Sagebiel – Director, Renewable Fuels Group, FCStone, LLC Jason graduated from Texas A & M University in 1996 with a degree in Agricultural Economics and Animal Science. Upon graduation Jason worked for a large vertically integrated poultry processor. Jason then moved to a commodity trading position within a grain and feed manufacturer in Texas. Jason began his career at FCStone in 2000 as a Risk Management Consultant working primarily with commercial accounts for the end-user. Today Jason works day-to-day with ethanol plants, bio-diesel plants and other end-users establishing risk strategies to protect and/or establish margins. Nathan Burk – Risk Management Consultant, Renewable Fuels Group, FCStone, LLC Nathan graduated from Iowa State University in 2004 with a degree in Finance. Upon graduation Nathan started his career as a Risk Management Consultant at FCStone. Currently Nathan works day-to-day with ethanol plants, bio-diesel plants and other end-users. Nathan has taken a leadership role in the development of integrated risk management plans for biodiesel plants. Nathan works to establish risk management strategies to protect and lock in margins for both integrated crushing biodiesel facilities as well as stand alone biodiesel facilities. Nathan also works with clients to develop supply studies for both ethanol and biodiesel groups. Nathan’s main focus is structuring trades which lock in pre-determined margins for clients. Matt Upmeyer – Risk Management Consultant, Renewable Fuels Group, FCStone, LLC Matt graduated from Iowa State University in 1999 with a degree in Agricultural Business. Upon graduation, Matt began his career as a Grain Merchandiser with Archer Daniels Midland which included both grain and product merchandising responsibilities at two soybean processing plants before assuming the role of Director of Import and Trade for Meals and Proteins in Mexico City, Mexico. Before joining FCStone Renewable Fuels Group, Matt served as the Commercial Manager for ADM’s soy crush plant in Des Moines, Iowa. Currently, Matt works day-to-day with ethanol plants, bio-diesel plants and other end-users. Matt is working with integrated crushing and biodiesel operations to establish risk management plans for both the soybean crushing plant and biodiesel refinery. Utilizing his knowledge of the soy crushing industry, Matt is assisting clients with the origination of competitively priced feedstock for biodiesel production. Matt and the other employees of the Renewable Fuels Group help to establish sound risk strategies to protect and lock in margins. ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group Jeff W. Sherman – Feedstock Procurement and Logistical Specialist, Renewable Fuels Group, FCStone, LLC Jeff graduated from Southern Illinois University in 1988 with a degree in Ag Business and Economics. Upon graduation Jeff began his career in the commodity business with Des Moines Grain Company merchandising cross country truck corn and soybeans. In 1991 Jeff was hired by FCStone subsidiary FGDI to develop a cross country cash grain trading division for the Midwest customers of FCStone. Jeff spent the past sixteen years trading cash commodities for FGDI prior to joining the Renewable Fuels Group. Utilizing his nineteen years of merchandising, trading and logistical experience Jeff currently works day to day with bio-diesel plants in sourcing competitively priced feedstock by taking advantage of arbitrage opportunities and freight spreads. Matt Campbell – Risk Management Consultant – FCStone Renewable Fuels Group Matt Campbell received a degree in Agricultural Business from Iowa State University in 1998. After graduation, Matt joined FCStone in a grain market research role. In 2001, Matt became a Risk Management Consultant in FCStone's Grain Division. In 2005, Matt began working within FCStone’s Renewable Fuels Group. Matt brings nine years of risk management experience to the team, and focuses on minimizing risk and maximizing margin potential. Matt currently provides grain market analysis and risk management recommendations for his clients. His customer group consists entirely of commercial hedgers ranging from large cooperative grain elevators to poultry feeders; from grain producers to ethanol plants. Matt’s customer base merchandises, produces, or consumes over 300 million bushels of grain each year. Matt also works on feasibility studies for prospective ethanol producers. Mike Blackford – Risk Management Consultant – FCStone Renewable Fuels Group Mike Blackford is a senior consultant/analyst with FCStone. For nearly 20 years, Mike has been developing strategic risk management plans and assessments for a variety of industries from producers to consumers. He is a strong contributor to FCStone's research department having written a multitude of statistical and fundamental commodity analysis. Recently, Mike has joined FCStone's renewable fuels group, advising clients on natural gas procurement, ethanol sales, and overall risk management policy. Mike holds a Bachelor of Science degree in Agricultural Business from Northwest Missouri State University. Terrance Wood – Energy Risk Management Consultant, FCStone, LLC Terrance Wood graduated from Iowa State University in 2001 with degrees in Agricultural Economics and Finance. Terrance began his career in commercial banking and finance as a commercial Account Analyst for a major banking firm. Terrance was in that role for 4 years working with large industrial companies in origination and capital management. Terrance began his career with FCStone in 2005 as an Energy Risk Management Consultant. Terrance currently works day-to-day with ethanol plants, bio-diesel plants and other large industrial end-users on their energy commodity risks establishing risk management strategies to protect and maintain margins. Bruce Benefiel – Risk Management Consultant – FCStone Renewable Fuels Group Bruce graduated from the University of Missouri in 2001 with a degree in Agricultural Economics. Upon graduation, Bruce started his career with FCStone as a risk management consultant. Bruce began by working in the crude oil/refined product energy space with producers, wholesalers, retailers, and end users. Bruce worked in developing a client base with the need to hedge their commodity risk and enhance margin for all types of companies. Bruce has been instrumental in educating and providing sound risk management strategies as well as very timely and clean execution of that product along the way. Recently, Bruce has used his energy background and knowledge to team up with the biofuels division in working with biodiesel producers. Bruce's main focus has been to evaluate and execute trading opportunites around the company's assets and strategic goals. ---------------------------------------------------------------------------------------------------------------------------------- Commodity trading is risky and FCStone Group Inc. assumes no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of OTC products are made solely on behalf of FCStone Trading LLC. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. Renewable Fuels Group 2829 Westown Pkwy, Suite 100 www.fcstone.com West Des Moines, IA 50266 800-422-3087 ext. 7419 Renewable Fuels Group Seth Greene – Risk Management Consultant, Renewable Fuels Group, FCStone, LLC Seth graduated from Purdue University in 2007 with a degree in Agricultural Finance. Upon graduation, Seth started his career as a Risk Management Consultant at FCStone, working day to day with ethanol plants, biodiesel plants, and other end users. Seth is working to establish risk management strategies to lock in and protect margins for integrated crushing and biodiesel facilities as well as stand alone biodiesel facilities. Seth also works on providing daily market commentary to FCStone clients related to the biodiesel industry. Cassie Cimaglia – Assistant – FCStone Renewable Fuels Group Cassie Cimaglia graduated from Drake University in 2003 with a degree in Accounting. She joined FCStone in the fall of 2003 as an Assistant to the Renewable Fuels Group. Cassie works day-to-day with ethanol and biodiesel customers. She maintains the research database for the Renewable Fuels Group. Cassie assists in developing feasibility studies for ethanol and biodiesel plants. Tina Estrem – Assistant – FCStone Renewable Fuels Group Tina Estrem joined FCStone in the fall of 2003 as an Assistant to FCStone grain division. In the summer of 2007, Tina joined the Renewable Fuels Group. Tina works day-to-day with ethanol, biodiesel, grain customers. She maintains the research database for the Renewable Fuels Group. Tina also generates daily, weekly, and monthly reports for all FCStone clientele.