HOMELAND ENERGY SOLUTIONS

2012 Year in Review

Walter Wendland, CEO

HISTORIC U.S. FUEL ETHANOL PRODUCTION

Expect 2009 biodiesel volume to be shifted to 2010

2007 Energy Bill Renewable Fuel Volumes

0

5

10

15

20

25

30

35

40

Billionsof

Gallons

Unspecified Advanced

Cellulosic Ethanol

Biomass Diesel

Conventional Biofuel

Unspecified Advanced 0.1 0.2 0.3 0.5 1.75 2 2.5 3 3.5 4 4.5 4.5 4.5 5

Cellulosic Ethanol 0.1 0.25 0.5 1 1.75 3 4.25 5.5 7 8.5 10.5 13.5 16

Biomass Diesel 0.5 0.65 0.8 1

Conventional Biofuel 9 10.5 12 12.6 13.2 13.8 14.4 15 15 15 15 15 15 15 15

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

911.1

12.9513.95 15.2 16.55

18.15

20.522.25

24

2826

30

33

36

Conventional biofuel includes ethanol from corn and sugar cane. Advanced biofuels can also be used to meet this portion of the mandate

biomass diesel in 2013 and after will be at least as much as 2012

Source: FAS*2012 estimated by RFA using Jan.-Oct. data

HOMELAND ENERGY SOLUTIONS

2012 Financial Overview

Dave Finke, CFO

HOMELAND ENERGY SOLUTIONS

12/31/1212/31/12 12/31/1112/31/11 12/31/1012/31/10 12/31/0912/31/09

Current Assets $ 17,402,396 $ 23,319,876 $ 30,920,597 $ 19,811,778

P, P & E (Net) 121,150,465 131,218,450 138,906,631 149,107,152

Other Assets 3,294,307 2,971,781 2,847,833 13,600,758

Total Assets 141,847,168 157,510,107 172,675,061 182,519,688

Current Liabilities 11,204,758 16,571,192 27,089,841 12,652,511

Long-Term Debt 1,268,793 246,488 33,101,406 62,263,911

Members’ Equity 129,373,617 140,692,427 112,483,814 107,603,266

Book Value Per Unit $1,430 $1,556 $1,230 $1,177

Income Statement SummaryIncome Statement Summary

HOMELAND ENERGY SOLUTIONS

2012 2011 2010 2009

Revenue $359,242,777 $419,312,560 $254,480,111 $161,855,910

Gross Profit 3,178,041 40,146,487 15,168,885 19,636,912

Operating Income 419,143 37,382,118 12,970,571 17,008,450

Net Income 494,765 36,353,768 11,030,809 15,640,375

Net Income/unit $5.47 $401.94 $120.63 $171.04

Distributions/unit $133.00 $79.00 $68.00 $ -

Taxable Income/unit $- $139.27 $ - $ -

Financial Ratios & FiguresFinancial Ratios & Figures

HOMELAND ENERGY SOLUTIONS

2012 2011 2010 2009Return on Assets 0.35% 23% 6% 9%

Return on Equity 0.38% 26% 10% 16%

Return on Investment 0.55% 41% 12% 17%

Gallons Sold 128.8 M 137.6 M 126.7 M 82.3 M

Income per Gallon $0.004 $0.264 $0.087 $0.189

Bushels Ground 44.1 M 48.3 M 45.2 M 30 M

Income per Bushel $0.011 $0.753 $0.244 $0.521

DDGs Sold 335,946 tons 392,245 tons 370,010 tons 235,000 tons

Corn Oil Sold (in lbs) 30.3 M 5.8 M

Economic ImpactEconomic Impact

HOMELAND ENERGY SOLUTIONS

Since April 2009Ethanol Revenues $975 Million

DDG Revenues $205 Million

Corn Oil Revenues $14 Million

Payments for Corn $897.7 Million

Wages & Benefits $11.4 Million

Misc Vendor Payments $110.4 Million

Distributions to Members $25,324,600.00

Production Update2012 Calendar Year

Kevin Howes, Plant Manager

HOMELAND ENERGY SOLUTIONS

TODAY is the 4 year anniversary since we ground our first bushel of corn! In that time……

•Produced over 510,000,000 gallons of Denatured Ethanol•Produced over 1,354,000 tons of DDGS•Produced over 44,000,000 lbs of Distillers Corn Oil•Ground over 178,000,000 bushels of corn

HOMELAND ENERGY SOLUTIONS

Freedom to Operate (EH&S)Freedom to Operate (EH&S)• 0 Recordable Injuries, 0 Lost Time Accidents 2012

•Surpassed 1000 days without a recordable injury•2012 Industry Average Incident rate = 1.7 based on HES hours worked•NEVER experienced a Lost Time accident at HES

• 0 NOVs received in 2012

• 0 Reportable Spills in 2012

• Recognition• Ranked 5th within the ERI 65+ member plant group in 2012

•Received ERI’s Award of Merit: top 25% of member plant past 2 years•Canadian Pacific Railroad Chemical Shipper Safety Award 3nd year in a row•IISC Gold Safety Award 2nd year in a row – TIR 25% of Industry Average

HOMELAND ENERGY SOLUTIONS

Thank You for your investment and the opportunity to lead one

of the best teams in the industry!!!

HOMELAND ENERGY SOLUTIONS

HOMELAND ENERGY SOLUTIONS

2012 Marketing Report

Stan Wubbena, Commodity Manager

THANK YOU

• TO EVERYONE INVOLVED IN SELLING, HAULING, GROWING THE CORN FOR OUR PLANT

• EVERYTHING WE DO AT HOMELAND STARTS WITH THE CORN

• OVER 180 MYN BUSHELS DUMPED SINCE WE BEGAN MARCH 24, 2009

• In 2012 44,204,506 bushels were received

Unit Train Destinations

• Sewaren, NJ• Charlotte, NC• Albany, NY• Linden, NJ• Lawrenceville, GA

• Providence, RI• Chesapeake, VA• Bridgeport, NJ• Denton, NC• Doraville, GA