Summary of The Andersons 2025 Investor Day Company Overview - **Company**: The Andersons (NasdaqGS:ANDE) - **Event**: 2025 Investor Day held on December 09, 2025 - **Key Focus**: Long-term growth strategy, business insights, and financial performance Core Messages and Strategic Insights 1. **Strengthened Company Position**: The Andersons is a materially stronger company with a seasoned team and deep expertise in agriculture and renewable fuels, poised for profitable growth [6][7][10] 2. **Diversified Portfolio**: The company has a balanced and diversified portfolio that has shown resilience through market cycles, particularly in North American agriculture and renewable supply chains [7][10] 3. **Renewables Growth Engine**: The renewables segment, particularly ethanol assets, has been a high-return business with ongoing investment opportunities, including a recent $425 million acquisition to enhance ethanol production [10][11] 4. **Disciplined Capital Allocation**: The Andersons employs a disciplined capital allocation strategy, leveraging consistent cash flows to drive long-term shareholder value [7][10] Financial Performance - **Q3 2025 Adjusted EPS**: $2.56 per share, with a target of $4.30 per share by the end of 2026 [11] - **Debt Management**: Long-term debt to EBITDA reduced by over 2.5 turns since 2020 while deploying $1 billion in capital [10] - **Earnings Power**: Demonstrated strong earnings power during the peak of the agricultural cycle in 2022 and 2023 [10] Business Segments Agribusiness 1. **Integrated Supply Chain**: The agribusiness segment connects producers to end users, trading over 800 million bushels of corn annually and supplying 165 million bushels to ethanol plants [13][14] 2. **Fertilizer and Grain Handling**: The company operates a network of grain elevators and fertilizer distribution, contributing 25%-30% of normalized EBITDA from fertilizers and 30%-35% from grain assets [17][19] 3. **Merchandising Expertise**: The asset-light merchandising model generates 35%-40% of normalized EBITDA, leveraging market analysis and logistics to optimize grain flows [20][22] Renewables 1. **Ethanol Production**: The Andersons operates four ethanol plants with a nameplate capacity of 393 million gallons, currently exceeding 500 million gallons in production [24][62] 2. **Co-Products**: The company maximizes revenue from co-products like dry distillers grains and corn oil, which contribute significantly to overall revenue [24][62] 3. **Market Position**: The renewables segment is positioned to benefit from low carbon fuel standards and the 45Z clean fuel production credits, enhancing profitability [27][60] Growth Strategy 1. **Macro Trends**: The Andersons is well-positioned to capitalize on favorable macro trends in energy and agriculture, focusing on organic growth and strategic acquisitions [30][31] 2. **Operational Excellence**: Continuous improvement and optimization of operations are key to driving efficiencies and cost savings [31][56] 3. **Customer-Centric Approach**: The company emphasizes a customer-first culture, enhancing relationships and delivering tailored solutions [54][55] Future Outlook - **Long-Term EPS Target**: A publicly stated target of $7 per share by the end of 2028 [33] - **Market Opportunities**: The Andersons aims to leverage its integrated capabilities and market knowledge to capture growth in both agribusiness and renewables [60][63] Additional Insights - **Sustainability Initiatives**: The company is actively developing sustainability programs and regenerative farming practices to meet evolving consumer and stakeholder requirements [47] - **Export Infrastructure**: Investments in export facilities, such as the Port of Houston, are aimed at enhancing market access and efficiency [53][46] This summary encapsulates the key points discussed during The Andersons 2025 Investor Day, highlighting the company's strategic direction, financial performance, and growth opportunities in the agribusiness and renewables sectors.

Strategy and Market Position - Höegh Autoliners' strategy focuses on anticipating market shifts, early positioning, and compounding returns over time[3] - The company is overweight cargo versus carrying capacity, using a normalized charter market to deliver value from long-term contracts[4] - The company has a historically strong contract backlog, with more cargo than it can carry[5] - In 2024, approximately 60% of the total spot volume was HH/BB share[9] Contractual Agreements - A significant 3-year contract renewal in a key trade lane was signed in August, valued above $100 million[10] - Contract share of volume transported increased by 5% from Q4 2024 to approximately 81%[10] - The average duration of the contract backlog is 3.3 years[10] - 80% of the 2025 lifting capacity is covered by contracts[6] Financial Stability and Debt Management - The company has no refinancing needs for the next 4 years[19] - More than 50% of Höegh Autoliners' committed financing has a 12-year duration at attractive terms[19] - The company has a $720 million credit facility secured by the modern part of the fleet[19] - The company has 21 debt-free vessels and approximately $200 million liquidity buffer through undrawn RCF[19] Carbon Intensity Reduction - Since 2008, the company has improved its carbon intensity by approximately 40%[16] - The company is aiming for zero emissions by 2040[16]

Financial Data and Key Metrics Changes - For the fourth quarter of 2024, revenue was $80 million and adjusted EBITDA was $22.6 million, compared to $87 million and $32 million in the same quarter of 2023, respectively [21] - The net loss for the quarter was $5.4 million, down from a net income of $20.1 million in 2023, primarily due to the timing and pricing of environmental credit sales [22] - For the full year 2024, revenue was $299.9 million, adjusted EBITDA was $90 million, and net income was $14.3 million, compared to $256.1 million, $51.9 million, and $127 million in 2023 [22] Business Line Data and Key Metrics Changes - The Fuel Station Service segment's EBITDA for 2024 was $40.2 million, a 70.6% increase compared to 2023 [9] - RNG fuel production for 2024 was 3.8 million MMBtus, up 41% from 2023, but slightly below the guidance of 4 million MMBtus [9][18] - The company has increased its RNG projects from 2 to 11 since going public in 2022, tripling its annual design capacity [10] Market Data and Key Metrics Changes - The company expects RNG production to range between 5 million and 5.4 million MMBtus in 2025, representing a 30% to 40% increase compared to 2024 [14] - The Fuel Station Services segment is projected to grow adjusted EBITDA by 30% to 50% in 2025 compared to 2024 [20] Company Strategy and Development Direction - The company aims to continue its growth through the execution of successful RNG projects and vertical integration, which enhances value for both the company and its feedstock partners [10][12] - The strategic focus includes expanding the Fuel Station Service segment, which provides diversification and predictable cash flows [11] - The company is optimistic about the potential for RNG as a cleaner alternative to diesel fuel, particularly in the heavy-duty trucking sector [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, despite near-term volatility, citing strong market fundamentals [20] - The company anticipates adjusted EBITDA for 2025 to range from $90 million to $110 million, based on production guidance and RIN price assumptions [14][24] - Management highlighted the importance of regulatory clarity and the potential for renewable power projects to contribute to future growth [64] Other Important Information - The company has appointed Kazi Hasan as the new CFO, who is expected to add significant value to the team [12] - Capital expenditures for 2024 were $162.3 million, with expectations for continued investment in growth projects [23] Q&A Session Summary Question: Production guidance and Q4 design capacity - Management expects increasing utilizations from facilities and anticipates sequential upticks throughout the year [29][33] Question: Competitive landscape and growth opportunities - The company is focused on executing existing projects while evaluating new opportunities in the market [35][38] Question: ITC and PTC credits in 2025 guidance - The guidance includes a material amount of 45Z credits, with ongoing discussions about potential improvements in scoring [44][45] Question: Tightness in the dispensing market - The market has tightened due to slower adoption of new engine technologies and regulatory uncertainties, but management sees potential for acceleration in adoption [48][50] Question: CapEx and equipment cost inflation - The company commits to equipment costs early in the project lifecycle to mitigate inflation impacts [54][56] Question: Timeline for EPA resolution on partial waiver - Management anticipates a resolution in the April-May timeframe [58][60] Question: Project development and federal incentives - There has not been a slowdown in early-stage project discussions despite uncertainties around federal incentives [77][78] Question: Balancing growth and capital preservation - The company has the flexibility to toggle between growth and generating free cash flow as needed [80][82] Question: Mix between upstream and downstream segments - The Fuel Station Services segment is growing faster, but it does not yet constitute 50% of the overall EBITDA [86][89]