investor presentation - the andersons, inc

Investor Presentation November 2019

Forward Looking Statements

2

Certain information discussed today constitutes forward-looking statements. Actual resultscould differ materially from those presented in the forward looking statements as a result ofmany factors including general economic conditions, weather, competitive conditions in theCompany’s industries, both in the U.S. and internationally, and additional factors that aredescribed in the Company’s publicly-filed documents, including its ’34 Act filings and theprospectuses prepared in connection with the Company’s offerings.

This presentation includes financial information which the Company’s independent auditorshave not completely reviewed. Although the Company believes that the assumptions uponwhich the financial information and its forward looking statements are based arereasonable, it can give no assurances that these assumptions will prove to be accurate.

This presentation contain non-GAAP financial measures. The Company believes adjustedpretax income, adjusted pretax income attributable to The Andersons, adjusted net income,adjusted EPS, EBITDA and adjusted EBITDA provide additional information to investors andothers about its operations, allowing an evaluation of underlying operating performanceand better period-to-period comparability. Adjusted pretax income, adjusted pretax incomeattributable to The Andersons, adjusted net income, adjusted EPS, EBITDA and adjustedEBITDA do not and should not be considered as alternatives to net income or incomebefore income taxes as determined by generally accepted accounting principles.Reconciliations of the GAAP to non-GAAP measures may be found within the appendix ofthis presentation.

Company and Financial Overview 4

Trade (and formerly Grain) Group 12

Ethanol Group 18

Plant Nutrient Group 24

Rail Group 30

2019 Outlook 35

Appendix 36

3

Table of Contents

The Andersons

$44MGrain (23%)

2014-2018 Average Adjusted EBITDA by Business3

Lansing Trade Group Acquisition and ELEMENT to Significantly Boost EBITDA

Founded Listed (NASDAQ) Market Cap1 Employees U.S. Locations Dividend History2

1947 1996, ANDE ~$620M ~2,600 ~140 22 Years

1 As of 11/1/19. 2 Consecutive years of paying a dividend. 3 Excludes Retail Group (closed in June 2017). Ethanol and Grain results exclude ratable portion of IDA adjustments on equity income from affiliates. Non-GAAP measure. See reconciliation tables in Appendix.

4

$48MPlant Nutrient (24%)

$43MEthanol (22%)

$60MRail (31%)

Top 10 U.S. Player in All Four Sectors

The AndersonsTrade Ethanol Plant Nutrient Rail

• Purchase and merchandise grain

• Provide value-added risk management services to growers

• Merchandise broad array of food and feed ingredients and specialty grains

• Provide logistics and transload services for ethanol, propane, sand

• Refiner of corn into ethanol and other products

• Recent merger with with Marathon Petroleum encompasses four plants

• New state-of-the-art ELEMENT biorefinery recently commissioned

• Third-party trading increased by Lansing transaction

• Supplier of primary nutrients; strong asset network

• Manufacturer and distributor of specialty nutrients

• Diversified product offerings

• Growing lawn and contract manufacturing fertilizer

72 5 37 26

~1.4B Bushels Traded

~550MGallons

~2M+Tons

~24,800Railcar Fleet

Faci

litie

sVo

lum

e

5

• Subject to different economic factors than the ag businesses, creating portfolio effect

• Offsetting cycle value buyers

• Diversified by car fleet and end markets

• Growing network of railcar repair facilities

6

Strong Geographic Footprint

~140 Locations Across the U.S., Canada, Puerto Rico & England

Leadership Team

Pat BowePresident & CEOJoined: 2015

Corey JorgensonPresident, Trade2016

Jeff BlairPresident, Plant Nutrient2017

Joe McNeelyPresident, Rail2017

New to ANDE within the last 3 years

Val BlanchettVP, Human Resources2016

Brian ValentineSVP & CFO2018

Naran BurchinowSVP, General Counsel2004

Jim PirolliPresident, Ethanol2017

7

Bill KruegerPresident, Trade2019

Leveraging Our Solid Foundation

CORE STRENGTHSCOMPETITIVE DIFFERENTIATORS

70+ years of market expertise and ingenuity with unique assets in place to provide customer solutions

Well respected history as partner of choice with deep customer relationships

Strong market presence in Eastern Corn Belt

Solid reputation due to nimble and customized approach

Experienced, dedicated leadership focused on profitable growth

Culture built on strong values and community stewardship

Focus on safety and operational efficiency

Merchandising, plant operations, logistics and risk management

Strong portfolio and balance sheet to weather industry cycles

8

9

Q3 ‘19 Highlights

Continued benefits from the Lansing acquisition and stronger merchandising income drove improved results

Remained profitable despite difficult margin environment; ELEMENT began production; created single legal entity with Marathon to hold our 4 existing plants

Posted year-over-year improvement on weather-delayed volume increase tempered by lower margin per ton due to product mix

Lower leasing income and negligible car sale income led to a decline in year-over-year results

Key Financial Data – Third Quarter 2019

10

$ In millions except per share data, long-term debt-to-equity Q3 ’19 Q3 ‘18 VPY YTD ‘19 YTD ‘18 VPY

Sales and merchandising revenues $1,982.8 $685.6 $1,297.2 $6,284.6 $2,232.7 $4,051.9

Gross profit 109.1 53.9 55.2 379.5 208.0 171.5

Operating and general expenses 107.1 66.0 41.1 327.4 190.1 137.3

Equity in earnings (loss) of affiliates (3.7) 7.2 (10.9) (2.4) 20.6 (23.0)

Income before income taxes (13.1) (3.6) (9.5) 7.7 23.2 (15.5)

Adjusted income before income taxes (10.5) (0.4) (10.1) 25.1 26.7 (1.6)

Net income attributable to The Andersons, Inc. (4.2) (2.1) (2.1) 11.7 17.7 (6.0)

Adjusted net income attributable to The Andersons, Inc. (2.3) 0.5 (2.8) 24.7 20.3 4.4

Diluted earnings per share (EPS) (0.13) (0.07) (0.06) 0.35 0.62 (0.27)

Adjusted diluted earnings per share (EPS) (0.07) 0.01 (0.08) 0.75 0.70 0.05

Depreciation and amortization 37.4 22.7 14.7 98.4 68.0 30.4

EBITDA 40.0 24.0 16.0 154.0 111.4 42.6

Adjusted EBITDA 42.5 $24.0 18.5 171.4 111.4 60.0

Effective tax rate 55.1% 48.5% 6.6% (21.4%) 24.4% (45.8%)

Long-term debt $968.2 $437.3 $530.9

Long-term debt-to-equity ratio 0.96 0.52 0.44

11

Pretax IncomeQ3 ’18 Adjusted Pretax Income to Q3 ’19 Adjusted Pretax Income Q3 ‘19 Reconciliation

($00

0)

Note: Amounts above exclude net income (loss) attributable to the noncontrolling interests of $223 in Q3 ’18 and ($1,633) in Q3 ‘19.

($14,000)

($12,000)

($10,000)

($8,000)

($6,000)

($4,000)

($2,000)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

($176)

$10,468

$536

($2,595)

($11,260)

($7,500) ($10,527) ($10,527)

($13,081) $2,554

12

Pretax IncomeYTD ’18 Adjusted Income to YTD ’19 Adjusted Pretax Income YTD ‘19 Reconciliation

Note: Amounts above exclude net income (loss) attributable to the noncontrolling interests of ($175) in YTD ’18 and ($2,265) in YTD ‘19.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$26,688 ($3,705)

($5,328)

($16,624)

$25,077

$7,735

$25,077($16)

$24,062

($00

0)

$17,342

Trade (formerly Grain) Group at a Glance

Champaign, IL Melfort, SK Toledo, OH

13

Bliss, ID

Top 5 U.S. Grain and Ingredients Merchant

~1.4B Bushels

~216MBushels

96MBushels

4MTonnes

1.7MTonnes

Total GrainTraded Total Space Capacity Risk Management

Products Feed Ingredients Specialty Ingredients

Complementary Geographic Assets & Footprint

Expanded Geographic Footprint

• Geographic expansion into Western Corn Belt/Great Plains, and Eastern Canada

• Further diversification of activities outside of traditional product and geographic regions

• Greater scale in the agricultural marketplace

Andersons facilitiesFormer Lansing facilitiesThompsons facilities

IA IL

SK

NM

ID

NE

MN

TX

IN

NY

OH

TN NC

VA

LA

MI

ON

MB

14

Trade Group

15

Q3 ‘19 Highlights

Adj. Pretax Income ($M)

• Strong results from western assets offset by impacts of planting-related issues in the Eastern Corn Belt• Solid merchandising results considering market backdrop• More than $10 million in run-rate synergies identified and being implemented

2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4

3

$14 ($16)

$24 $22

1 Excludes gain of $23.1 from partial redemptions of our investment in Lansing Trade Group and goodwill impairment charges of $46.4. 2 Excludes asset impairment charges of $10.9. 3 Excludes acquisition costs of $14.3 and asset impairment charges of $3.1.

1 2

$27

Unaudited in $M Q3 ‘19 Q3 ‘18 VPY YTD ‘19 YTD ’18 VPY

Revenues $1,580.1 $342.6 $1,237.5 $4,944.5 $983.7 $3,960.8

Gross Profit $74.8 $15.8 $59.0 $246.6 $74.9 $171.7

Pretax Income (loss) ($2.0) ($9.9) $7.9 $4.3 ($2.5) $6.8

Adjusted PretaxIncome (loss) $0.6 ($9.9) $10.5 $21.6 ($2.5) $24.1

EBITDA $18.4 ($3.7) $22.1 $70.8 $18.8 $52.1

Adjusted EBITDA $20.9 ($3.7) $24.6 $88.2 $18.8 $69.4

Executing on Growth Initiatives to Improve Earnings Capacity

2019 -2020 2021 - 2022

• Exceed stated $10M run-rate synergy goal by end 2020

• Successfully complete all Integration Management Office milestones

• Aggressively capture commercial synergies to drive earnings growth

• Identify and execute on organic growth opportunities across the business

• $5 to $7M incremental run-rate synergies by end 2021

• Grow Food and Specialty Ingredients earnings capacity

• Grow risk management products (Freedom)

• Generate annual adjusted EBITDA of $125M to $135M

16

Near- and Long-term Goals

17

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Greenville, OH

Albion, MI

Denison, IA

Top 10 U.S. Ethanol Producer

Strategically Located Ethanol Plants

ELEMENT LLCOpened August 2019

MI

IA

OHIN

KS

Clymers, IN

18

Ethanol Group Overview

The Andersons Marathon Holdings LLCEffective October 2019

• 70 million gallons per year ethanol capacity

• $175 million joint investment

• The Andersons (51% owner) provides grain origination; ethanol and RIN marketing; and risk management and other support services; to provide carbon credit marketing

• ICM (49% owner) provides plant construction, engineering, manufacturing, operations and management services

• Significantly enhanced margins ($0.10 to $0.25 per gallon)

Project Summary Timeline• Construction began March 2018

• Production began August 2019

• Expect to be fully operational by the end of 2019

• Expected to begin generating carbon credits and cellulosic RINs in mid-2020

ELEMENT™, Colwich, Kansas, September 2019

ELEMENT, LLC

19

Improved ethanol and corn oil production and yield

Production of low carbon intensity ethanol, generating carbon credits

Production of cellulosic ethanol, generating cellulosic RINs

Production of higher value feed products

Significant energy usage reduction in both natural gas and electricity

Technology Innovations

ICM’s technologies will help ELEMENTmake these advancements

™

ELEMENT, LLC

20

Production Capacity Attributable to ANDE: ~275MGY

Plant Open Date Capacity(MGY)

Ownership

The Andersons Marathon Holdings LLC 50.1%

Albion, MI Aug. 2006 140

Clymer, IN Apr. 2007 135

Greenville, OH Feb. 2008 140

Denison, IA May 2012 60

ELEMENT, LLC 51%

Colwich, KS Aug. 2019 70

Key Benefits• Stable service fee income• Strategic partnerships with

largest end user in the U.S. and foremost technology provider in the world

• Diversified geographic footprint

• Negotiation leverage to drive production costs lower

• Technology vetting opportunities

• Improved benchmarking and market intelligence

Ethanol Group

21

Ethanol Group

22

• Group remained profitable, but pretax income down sharply on weak margins due to elevated corn basis

• Increased ethanol trading boosted results

• ELEMENT startup expenses added to year-over-year shortfall

2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4

$29 $25

$19

$22

Pretax Income Attributable to The Andersons, Inc. ($M)

$6

Q3 ‘19 Highlights

Unaudited in $M Q3 ‘19 Q3 ‘18 VPY YTD ‘19 YTD ‘18 VPY

Revenues $254.1 $195.7 $58.4 $708.0 $571.1 $136.9

Equity in Earnings of Affiliates ($3.6) $4.8 ($8.4) ($0.5) $10.7 ($11.2)

Consolidated Operations and Services Fees $2.9 $5.8 ($2.9) $4.4 $9.8 ($5.4)

Pretax Income (Loss) ($0.7) $10.6 ($11.3) $3.9 $20.5 ($16.6)

Attributable to Noncontrolling Interest ($1.6) $0.2 ($1.8) ($2.3) ($0.2) ($2.1)

Pretax Income Attributable to The Andersons, Inc. $0.9 $10.4 ($9.5) $6.2 $20.7 ($14.5)


• Produce cellulosic ethanol from corn kernel fiber

• Add high-protein DDGs production at 1 to 2 plants

• Increase gallons under management from ~475M to 550M+

• Add high-protein DDGs production at all plants

• Increase gallons under management to 660M+

• Generate annual EBITDA attributable to the company of $85M to $95M

2019 - 2020 2021 - 2022


23

MN

IA

WI

NE

NC

AL

IL INOH

MI

Wholesale Fertilizer Facility Farm Center Facility Lawn Facility Cob Facility

Puerto Rico

• Natural adjacency to the Grain business, leveraging grower relationships and intelligence and a drive to bring growers value sustainability

• Founded in wholesale distribution of basic row crop fertilizer (NPK)

• Significant expansion of specialty nutrient capabilities

Plant Nutrient Foundation with a Value-added Focus…

Creates value for Farmers and Shareholders

• Delivers sustainable and precision agriculture solutions

• Specialty nutrients helps maximize yields and minimize environmental impact

• Improves economics for growers

Plant Nutrient Group Overview

24

Committed to Growth of Specialty Nutrients

• 2.2M tons sold is about 4.5% of total ~50M ton fertilizer market

• Our market share is 15% to 18%1

in our core areas

• Maintaining our market share Volumes steady, lower margins Wholesale entitlement radius

100 miles, retail 30 miles

Background Tons Sold (000s)2

254 214287

109108

95

1513

13

Q3 '17 Q3 '18 Q3 '19

Primary Nutrients Specialty Nutrients Other Tons

1 Based on Company estimates. 2 Primary nutrients = nitrogen, phosphorous, potassium (including those sold by farm centers); specialty nutrients = low-salt liquid starter fertilizers, and micro-nutrient (including those sold by farm centers) and lawn fertilizers; other tons = cob products.

Plant Nutrient Group

25

Plant Nutrient Group

Adj. Pretax Income ($M)

• Pretax income improved 7% on better volumes and lower operating expenses

• Margins were lower due to product mix

• Carrying costs on higher inventory continued to be a headwind

2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4

$15$14

$14

$5$12

1 Excludes goodwill impairment charges of $9.7 and one-time acquisition costs of $4.9. 2 Excludes goodwill impairment charges of $59.1.

1 2

Q3 ‘19 Highlights

26

Unaudited in $M Q3 ’19 Q3 ‘18 VPY YTD ‘19 YTD ‘18 VPY

Revenues $109.4 $104.2 $5.2 $508.5 $542.9 ($34.4)

Gross Profit $15.9 $15.5 $0.4 $75.6 $74.9 $0.7

Gross Profit Margin 14.5% 14.9% (0.4%) 14.9% 13.8% 1.1%

Pretax Income (loss) ($7.4) ($8.0) $0.6 $4.5 $8.2 ($3.7)

EBITDA $0.9 $0.1 $0.8 $30.8 $32.9 ($2.1)

Physical Product Flow: Factory to Field

Wholesale Distribution Capacity is Critical to Ag Supply Chain

75% of Supply Moves through Distributors Like ANDE

Storage(Distribution)Manufacturers Farmers

Retailers, Dealers and

Co-ops

27


• Continue the turnaround

• Re-energize sales organization

• Implement new IT system successfully

• Align organizational structure for productivity and future growth

• Broaden operational excellence

• Continue to establish strategic alliances with customers and suppliers

• Develop new products that are sustainable and environmentally friendly

• Grow specialty tons by 3% to 5% per year

• Generate annual EBITDA of $60M to $65M

28

2019 - 2020 2021 - 2022


29

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Key Metrics

~24,800 Railcars

90.3% Average Utilization Rate1

~22,500 Cars on Lease2

26 Railcar Repair Facilities2

Railcar Fleet by Commodity2

~150 Commodities Handled

Rail Group Overview

30

1 Average of Q3 ’19. 2 As of 9/30/19.

28%

3%

4%

5%

5%

6%

7%

8%

11%

23%

Other

Aggregates & Limestone

Chemicals

Metals & Products

Ethanol & Gasoline

Wood & Forestry/Paper

Plastics

Sand/Sand Products

Fertilizer/Minerals

Grain/Grain Products

We Are an Active Player in Most Primary Car Types

• Expanded from ag-related cars (grain and fertilizer covered hopper) to broad range of car types

• Have only ~1% of railcars in the pressured crude oil and coal markets

• Limited exposure to intermodal/flat car market

• Focused on improving the average remaining life of the fleet

Railcar Percent of North American Fleet1

Covered Hopper29% / 64%

Open-Top Hopper7% / 3%

Gondola11% / 5%

Boxcar6% / 4%

Flat Car11% / 2%

Other3% / 3%

Intermodal Platform10% / NA

Tank Car21% / 19%

Industry / Andersons Fleet2

ANDE Focus

1 Source: Umler® Equipment Index through 12/31/18. 2 As of 9/30/19.

Rail Group’s Diverse Fleet

31

• Strategically located and geographically diverse network

• High-quality repairs

• Broad range of capabilities (from simple repairs to re-manufacturing)

• Growing tank car capabilities

• Serves both ANDE fleet and third-party shippers and railroads

• Income growing steadily Repair Facility Tank Car Repair Capable

CA

UT

SCMS

IAIN

MO

NY

OHMD

TX

ILNJ

NC

Rail Repair Network

32

TN

Rail Group

33

• Lease income fell due to lower lease rates and utilization and headwinds in grain, frac sand and ethanol markets

• Income from car sales was negligible as planned

• Repair business results lagged prior year on higher labor and benefits expenses

2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4

$17

$51

$25

$32

$11

Q3 ‘19 Highlights

Unaudited in $M Q3 ‘19 Q3 ‘18 VPY YTD ‘19 YTD ‘18 VPY

Revenues $39.1 $43.1 ($4.0) $123.5 $135.0 ($11.5)

Gross Profit $11.8 $14.8 ($3.0) $42.5 $40.9 $1.6

Gross Profit Margin 30.3% 34.3% (4.0%) 34.4% 30.3% 4.1%

Lease Income $2.0 $2.5 ($0.5) $8.0 $6.7 $1.3

Railcar Sales Income $0.1 $1.9 ($1.8) $1.1 $1.2 ($0.1)

Service and Other Income $1.0 $1.3 ($0.3) $1.5 $2.7 ($1.2)

Pretax Income $3.1 $5.7 ($2.6) $10.6 $10.6 $ -

EBITDA $16.1 $15.7 $0.4 $48.1 $40.0 $8.1

Pretax Income ($M)

Executing on Initiatives to Grow Earnings and Operating Cash Capacity

• Grow railcar fleet from 23,000+ to 24,000 cars

• Add 2 to 3 repair facilities per year

• Generate Annual EBITDA of $55M to $65M

• Grow railcar fleet to 25,000 to 26,000 cars

• Add 2 to 3 repair facilities per year

• Generate annual EBITDA of $65M to $75M

2019 - 2020 2021 - 2022


34

2019 Outlook

35

Lower production in our core eastern footprint will reduce volume; merchandising opportunities are solid across the remainder of the portfolio

Near-term margin picture has allowed hedging opportunities that should improve results; ELEMENT plant will bring new products online

Full-year year view unchanged; results to fall well below those of the prior year due to the impact of the wet planting season

Utilization rates should stay above 90 percent; cars under lease should continue to increase

Appendix

36

Definitions

EBITDA: Earnings before interest, taxes, depreciation and amortization; a non-GAAP measure. A primary measure of period-over-period comparisons, and we believe they are meaningful measures for investors to compare our results from period to period

Ethanol Margin Hedging: From time to time we establish hedge positions with futures and derivative contracts that lock in prices for sales of ethanol and purchases of corn and natural gas with the intent of securing portions of our future sales margins

Railcar Fleet Utilization: Percentage of railcars in leased service divided by total railcars controlled by company

Primary Nutrients: Nitrogen, phosphorous, potassium (including those sold by farm centers)

Specialty Nutrients: Low-salt liquid starter fertilizers, micro-nutrients, lawn fertilizers (including those sold by farm centers)

Other Tons: Corn-cob products

37

Historical Performance ($M)

Gross Profit Adj. EBITDA1 Adj. Pretax Income1 Capital Investments2

$397 $376

$346

$319 $302

2014 2015 2016 2017 2018

$238

$175

$124

$157

$178

2014 2015 2016 2017 2018

$154

$76

$19

$49

$60

2014 2015 2016 2017 2018

$118 $111 $106

$141

$251

2014 2015 2016 2017 2018

1 Non-GAAP measure. See reconciliation tables in Appendix. 2 Investments in PP&E and net investments in Rail Group assets as disclosed in statement of cashflows.

38

$M Trade Ethanol Plant Nutrient Rail Other Total

Nine Months Ended September 30, 2019

Income (loss) before income taxes $ 4.3 $ 3.9 $ 4.5 $ 10.6 $ (15.6) $ 7.7

Income (loss) attributable to the noncontrolling interests - (2.3) - - - (2.3)

Income (loss) before income taxes attributable to The Andersons, Inc.1 4.3 6.2 4.5 10.6 (15.6) 10.0

Interest expense 29.0 (1.5) 6.5 12.1 (0.4) 45.6

Deprecation and amortization 37.5 7.1 19.8 25.4 8.6 98.4

Earnings before interest, taxes, depreciation and amortization (EBTIDA) 70.8 11.7 30.8 48.1 (7.4) 154.0

Adjusting items impacting EBITDA:

One time acquisition costs 6.9 - - - - 6.9

Transaction related stock compensation 7.3 - - - - 4.8

Asset impairment 3.1 3.1

Total adjusting items 17.3 - - - - 14.8

Adjusted EBITDA $ 88.2 $ 11.7 $ 30.8 $ 48.1 $ (7.4) $ 171.4

Reconciliation to EBITDA and Adjusted EBITDA

1 Income (loss) before income taxes attributable to The Andersons, Inc. for each Group is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income (loss).

39

$M Grain Ethanol Plant Nutrient Rail Other Total

Nine Months Ended September 30, 2018

Income (loss) before income taxes $ (2.5) $ 20.5 $ 8.2 $ 10.6 $ (13.6) $ 23.2

Income (loss) attributable to the noncontrollinginterests - (0.2) - - - (0.2)

Income (loss) before income taxes attributable to The Andersons, Inc.1 (2.5) 20.7 8.2 10.6 (13.6) 23.4

Interest expense 9.0 (1.1) 4.4 7.7 - 20.0


Earnings before interest, taxes, depreciation and amortization (EBTIDA) $ 18.8 $ 24.2 $ 32.9 $ 40.0 $ (4.5) $ 111.4


Acquisition costs - - - - 3.5 3.5

Adjusted EBITDA $ 18.8 $ 24.2 $ 32.9 $ 40.0 $ (1.1) $ 114.8



40


Year Ended December 31, 2018

Income (loss) before income taxes $ 26.7 $ 21.9 $ 12.0 $ 17.4 $ (24.8) $ 53.2

Income (loss) attributable to the noncontrolling interests - (0.2) - - - (0.2)

Income (loss) before income taxes attributable to The Andersons, Inc.1 26.7 22.1 12.0 17.4 (24.8) 53.4

Interest expense 11.8 (1.9) 6.5 11.3 - 27.8

Depreciation and amortization 16.1 6.1 26.9 29.2 12.1 90.4

Earnings before interest, taxes, depreciation and amortization (EBITDA) 54.6 26.4 45.4 57.9 (12.7) 171.6

Adjusting items impacting EBITDA

Acquisition costs - - - - 6.5 6.5

Earnings before interest, taxes, depreciation and amortization (EBTIDA) $ 54.6 $ 26.4 $ 45.4 $ 57.9 $ (6.2) $ 178.1



41



Income (loss) before income taxes $ 12.8 $ 19.0 $ (45.1) $ 24.8 $ (32.0) $ (20.5)

Income (loss) attributable to the noncontrolling interests - 0.1 - - - 0.1

Income (loss) before income taxes attributable to The Andersons, Inc.1 12.8 18.9 (45.1) 24.8 (32.0) (20.6)

Interest expense 8.3 (0.1) 6.5 7.0 (0.1) 21.6


Earnings before interest, taxes, depreciation and amortization (EBTIDA) 39.9 24.8 (12.0) 54.9 (20.1) 87.4


Goodwill impairment - - 59.1 - - 59.1

Asset impairment 10.9 - - - - 10.9

Total adjusting items 10.9 - 59.1 - - 70.0

Adjusted EBITDA $ 50.8 $ 24.8 $ 47.1 $ 54.9 $ (20.1) $ 157.4



42

$M Grain Ethanol Plant Nutrient Rail Retail Other Total


Income (loss) before income taxes $ (15.7) $ 27.6 $ 14.2 $ 32.4 $ (8.8) $ (28.3) $ 21.4

Income (loss) attributable to the noncontrolling interests - 2.9 - - - - 2.9

Income (loss) before income taxes attributable to The Andersons, Inc.1 (15.7) 24.7 14.2 32.4 (8.8) (28.3) 18.5

Interest expense 8.0 - 6.4 6.5 0.5 (0.3) 21.1

Deprecation and amortization 18.2 5.9 28.7 20.1 2.4 9.0 84.3

Earnings before interest, taxes, depreciation and amortization (EBTIDA) 10.5 30.6 49.3 59.0 (5.9) (19.6) 123.9


Total adjusting items - - - - - - -

Adjusted EBITDA $ 10.5 $ 30.6 $ 49.3 $ 59.0 $ (5.9) $ (19.6) $ 123.9



43



Income (loss) before income taxes $ (9.5) $ 30.3 $ 0.1 $ 50.7 $ (0.5) $ (82.7)

$ (11.6)


Income (loss) before income taxes attributable to The Andersons, Inc.1 (9.5) 28.5 0.1 50.7 (0.5) (82.7) (13.4)

Interest expense 5.8 0.1 7.2 7.0 0.4 (0.4) 20.1


Earnings before interest, taxes, depreciation and amortization (EBTIDA) 15.5 34.5 32.5 76.2 2.4 (75.9) 85.2


Goodwill impairment 46.4 - 9.7 - - - 56.1

Pension adjustment - - - - - 51.4 51.4

Partial redemption of investment in Lansing Trade Group (23.1) - - - - - (23.1)

One-time acquisition costs - - 4.9 - - - 4.9

Total adjusting items 23.3 - 14.6 - - 51.4 89.3

Adjusted EBITDA $ 38.8 $ 34.5 $ 47.1 $ 76.2 $ 2.4 $ (24.5) $ 174.5



44



Income (loss) before income taxes $ 58.1 $ 105.2 $ 24.5 $ 31.4 $ (0.6) $ (34.5) $ 184.1


Income (loss) before income taxes attributable to The Andersons, Inc.1 58.1 92.3 24.5 31.4 (0.6) (34.5) 171.2

Interest expense 8.8 0.3 5.3 7.2 0.7 (0.5) 21.8


Earnings before interest, taxes, depreciation and amortization (EBTIDA) 83.4 98.3 49.4 51.9 2.8 (30.8) 255.0


Partial redemption of investment in Lansing Trading Group (17.1) - - - - - (17.1)

Total adjusting items (17.1) - - - - - (17.1)

Adjusted EBITDA $ 66.3 $ 98.3 $ 49.4 $ 51.9 $ 2.8 $ (30.8) $ 237.9



45

Implemented Leverage and Liquidity Strategy…

…To Ensure Financial Flexibility

• Long-term Debt to Equity

− < 1:1 for Trade, Ethanol and Plant Nutrient

− < 3:1 for Rail

• No more than 20% of long-term debt maturing in any single year

• Working capital >$250M

• Net Debt to Adjusted EBITDA expected to remain < 4.0x

($M) 9/30/19 9/30/18

Cash $ 21 $ 17

Other Current Assets 1,453 861

Non-Current Assets 1,795 1,274

Total Assets $ 3,269 $ 2,152

Current Liabilities, excluding Current Portion of Long-Term Debt $ 984 $ 675

Long-Term Debt, Including Current Portion 1,035 453

Other Noncurrent Liabilities 239 181

Equity 1,011 843

Total Liabilities & Equity $ 3,269 $ 2,152

Noncurrent Long-Term Debt / Equity 0.96 0.52

46

M&A Strategy

S T R A T E G I C F I L T E R S F I N A N C I A L C R I T E R I A

Accretive to EPS within Two Years

ROIC Above Cost of Capital by Year 3

(risk-adjusted)

Payback Period on Long-lived Assets < 10 Years

Addresses Validated Customer Needs

Strengthens Geographic Footprint

Increases Scale

Provides Differentiation: Enables Ability to “Move Up Value Chain”

Fits Strategically; Core Or Adjacent

Disciplined, Focused and Strategic Approach

47

Capital Allocation Framework

77.2%

8.1%

9.7%5.0%

Uses of Cash: 2014 to 2018

$852M

Capital Investments

Acquisitions and Investments

Dividends

Share Repurchases

INVEST IN ORGANIC GROWTH

RETURN CASH TO

SHAREHOLDERS

PURSUE STRATEGIC

ACQUISITIONS

• Invest in adjacencies to increase penetration of existing service offerings and expand footprint

• Seek strategic, bolt-on targets

• Selectively use minority partner capital

• 22+ years of consecutive dividend payout, totaling more than $80M over the past five years

1 Acquisitions of businesses, purchases of investments (including investments in affiliates) and distributions to noncontrolling interests, net of proceeds from return on investments in affiliates, as disclosed in the statement of cash flows. 2 Purchases of treasury stock, offset by proceeds from sale of treasury shares to employees and directors and excess tax benefit from share-based payment arrangements, as disclosed in the statement of cash flows.

1

2

48

U.S. Corn HarvestGold states = ahead of 2018 harvestGray states = behind 2018 harvest

November 4, 2019

52%

November 4, 2018

74%

75%

Five Year Average

Percentage Harvested

49

October 19-20

168.2

October 19-19

176.4

Yield (Bushel/Acre)

Source: USDA crop progress report 11/4/19

Source: USDA 10/10/19

U.S. Soybeans Harvest

50

Gold states = ahead of 2018 harvestGray states = behind 2018 harvest

November 4, 2019

75%

November 4, 2018

81%

87%

Five Year Average

Percentage Harvested

October 19-20

46.9

October 19-19

50.6

Yield (Bushel/Acre)

Source: USDA crop progress report 11/4/19


USDA Supply/Demand


51

State ANDE2 ANDE % of Total

Illinois 16.2 1.1%

Iowa 2.6 0.2%

Nebraska 15.4 1.6%

Texas 7.2 1.1%

Indiana 27.1 5.0%

Ohio 42.3 9.1%

Michigan 32.5 14.1%

Louisiana 25.6 20.0%

Idaho 15.6 12.6%

Tennessee 3.6 4.8%

New York 1.4 2.9%

Total U.S.3 189.5 1.6%4

U.S. Grain Storage Capacity

Total U.S. commercial (off-farm) storage capacity of 11,473 million bushels, and 13,518 million on-farm storage

48

75

124

128

230

465

545

640

950

1,500

1,500

New York

Tennessee

Idaho

Louisiana

Michigan

Ohio

Indiana

Texas

Nebraska

Iowa

Illinois

U.S. Off Farm Storage Capacity1 ANDE U.S. Storage Capacity In millions of bushels In millions of bushels

1 Sources: USDA 2/1/19 Grain Storage Capacity 2 As of 2/15/19; includes temporary pile storage 3 Doesn’t include 26.5 million bushels in Canada 4 ANDE percent of total U.S. off-farm storage capacity

52

Crop Year ‘07-’08 ‘08-’09 ’09-’10 ‘10-’11 ‘11-’12 ‘12-’13 ‘13-’14 ’14-’15 ‘15-’16 ’16-’17 ‘17-’18 ‘18-’19

Supply1 20.3 19.8 21.3 21.0 19.8 18.3 21.3 22.3 22.5 24.9 24.7 24.7

Capacity 20.9 21.4 21.8 22.3 22.9 23.2 23.5 23.8 24.2 24.3 24.7 25.0

Utilization2 97% 93% 98% 94% 86% 79% 91% 94% 93% 100% 102% 99%

Carryout 2.1 2.5 2.8 2.2 1.9 1.7 1.9 2.7 2.9 4.0 3.7 3.7

U.S. Storage Capacity/Supply Impact

Industry Has Grown Into New On-farm Storage Capacity

9.1 9.4 9.5 9.7 10.1 10.3 10.4 10.7 10.9 11.1 11.2 11.5

11.8 12.0 12.3 12.5 12.8 12.9 13.0 13.1 13.2 13.3 13.5 13.5

0

10

20

'07-'08 '08-'09 '09-'10 '10-'11 '11-'12 '12-'13 '13-'14 '14-'15 '15-'16 '16-'17 17-'18 18-'19

Off-Farm On-Farm

Grains Are Harvested Once and Needed

throughout Each Year;

Total Supply Growing

Faster than Capacity

(B) of bushels

(B) o

f bus

hels

U.S. Grain Storage Will Continue to Have Value Based on Strong Market Demand

Sources: PRX (The ProExporter Network) as of 2/9/19, USDA 2/1/19 Grain Storage Capacity, USDA Supply & Demand 2/8/19.1 Total supply = corn, soybeans, wheat. 2 Storage capacity utilization = Total supply/total storage capacity.

53

Sources of Octane

84

92

101 103106

110113 115

75

80

85

90

95

100

105

110

115

120

125

Sub-octane Butane Benzene Toluene Xylene MTBE Ethanol Methanol

Premium Gasoline

Regular Gasoline

Extremely high RVP

Limited to 1% of the blend

Banned in 26 states. No liability protection for producers

Not covered by OEM warranties

Ethanol Demand Driven by Economic, Clean Source of Octane

Source: U.S Department of Energy, National Renewable Energy Lab

54

Ethanol Group

Production Capacity

Ethanol 482M Gal.

E85 Flex Fuel 60M+ Gal.

DDGs 1.3M Tons

Corn Oil 115M+ lbs.

• Ethanol is a low cost, clean burning, high octane, renewable fuel product

• E85, Distillers Dried Grains (DDGs), Corn Oil and CO2

• We market the CO2produced as part of the process at 3 out of our 4 plants

• Our ethanol customers are primarily refiners and fuel blenders

Overview of Ethanol

Contribution Margin Per Gallon of Ethanol Produced

RevenueStreams

InputCosts

MARGIN

Ethanol Corn

DDGsVariable

Gas & Electric

DepreciationFixed

Corn OilCO2

55

Brazil, 25%

Canada, 21%

India, 13%

Korea, 6%

Philippines, 5%

Colombia, 5%

Peru, 3%

Netherlands, 3%

Oman, 3%

Mexico, 2%UK, 2%

Jamaica, 2% Other, 9%

U.S. Ethanol Exports Expected to Fall from 2018 Peak

Exports Expected to Decline Until Trade Dispute with China Is Resolved

U.S. Ethanol Exports (MGY)

Source: Pro Exporter Network 10/21/19

YTD through August 2019

56

Source: EIA as of 10/31/19

397

1,193

740620

836 836

1,046

1,367

1,705

1,447

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E

Corn Oil Pounds Shipped

Ethanol Group Production

Ethanol Gallons Produced DDG Tons SoldE-85 Gallons Shipped

Charts include activity at nonconsolidated ethanol plants

in millions in millions in thousands in millions

57

116.3 121.9 118.1

330.6

360.1 354.8

2017 2018 2019Q3 YTD

12.5 16.0

14.0

32.4

47.5

36.4

2017 2018 2019Q3 YTD

315.0 312.0 304.0

917.9 941.0 915.0

2017 2018 2019Q3 YTD

27.5 29.5 29.2

74.4

85.087.7

2017 2018 2019Q3 YTD

Life Cycle of NutrientsPre-Season:

• Agronomy Testing

• Base load of Nitrogen, Phosphorus and Potassium (NPK) Application

• Micro-Nutrient Application

Post-Season:• Agronomy Testing

• Base load of Phosphorous and Potassium Application

• Micro-Nutrient Applications: Zinc and Manganese

Spring & Summer Growing Season:

• Planting: Starter, Low Salt

• Side Dressing: Nitrogen supports yields

• Protecting: Pesticides

Mar Apr May Jun Jul Aug Sept Oct

Spring Pre-Planting Spring & Summer Growing Season Fall Post Harvest

Emergence Tassel & Ear Initiation Pollination Tasseling Silking Maturity

58

Nutrient DemandCrop nutrient (N,P,K) use is highest for Corn

Strong corn acreage supports NPK demand

44%

17%

2% 5%

41%

15% 14%

5%

43%

5%

19%

6%

Corn Wheat Soybeans Cotton Corn Wheat Soybeans Cotton Corn Wheat Soybeans Cotton

Nitrogen Phosphorous K Potassium

59

2019 U.S. Farm Income Expected to Remain Very Low

51 55

39

61

8779

5770

78

62

77

114

97

124

9281

62

7884 88

57 6251

7284 87

6877

8574

96

123135 136 131

10796

103 105113

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F

Net Farm Income Net Cash Income

Over the Cycle, Farmer Income Is a Key Driver

Average since 2000: $77B $93B

$ billion

60

Source: USDA Farm Sector Indicators, August 2019

Rail Group Top 10 Player Background

• ~1.6M U.S. railcars

65% private owners

35% railroad owned

• More nimble than larger players, providing speed and flexibility

• More cars than smaller players to provide us with scale advantage

Top 25 Private Railcar Owners

374,000 169,305

102,174 102,140 102,849

87,734 86,210 83,918

29,989 23,951

16,838 15,068 13,320 12,245 11,665 11,345 11,226 10,417 8,900 8,164 7,151 6,665 6,366 5,546 5,429

- 50,0 00 100 ,000 150 ,000 200 ,000 250 ,000 300 ,000 350 ,000 400 ,000

Greenbrier Management ServicesTTX Co.

Union Tank CarTrinity Industries Leasing

Wells Fargo RailThe CIT Group/Equipment Financing

GATX*SMBC Rail Services/ARL LLC

ProcorThe Andersons

ExxonMobilAmerican Railcar Industries

ADM TransportationMidwest Railcar

Progress Rail LeasingEquistar Chemicals

Chicago Freight Car LeasingDow Chemical

Greenbrier LeasingHalliburton Energy Services

CargillGeorgia Power

CAI RailDavid J. Joseph

Mitsui Rail Capital

1.2.

25.

9.

3.4.5.6.7.8.

11.12.13.14.15.16.17.18.19.20.21.22.23.24.

10.

Well Positioned in Industry with Strong Customer Service Focus

Lessor

ManufacturerShipper

Source: The Official Railway Equipment Register® April 2019

* SMBC purchased American Railcar Leasing, LLC (ARL, LLC)

61

Tank Car Type/Service TC Retrofit Deadline FAST Act Phase-out DeadlineCrude – RemovedCondensates – Removed Ethanol – May 1, 2023 PG I/II/III – May 1, 2025

Crude – RemovedEthanol – May 1, 2023PG I – May 1, 2025**PG II/III – May 1, 2029*

Crude – RemovedCondensates – RemovedEthanol – May 1, 2023PG I/II/III – May 1, 2025

Crude – Removed Ethanol – May 1, 2023PG I – May 1, 2025**PG II/III – May 1, 2029*

Crude – RemovedCondensates – RemovedEthanol – July 1, 2023PG I/II/III – May 1, 2025

Crude – April 1, 2020Ethanol – July 1, 2023PG I – May 1, 2025**PG II/III – May 1 ,2029*

Crude – May 1, 2025Condensate – May 1, 2025Ethanol – May 1, 2025PG I/II/III – May 1, 2025

Crude oil – May 1, 2025Ethanol – May 1, 2025PG I – May 1, 2025**PG II/III – May 1, 2029*

Comparison of HM-251 Tank Car Phase-out Schedule vs. FAST Act Phase-out Schedule (Tank Cars in Class 3 Flammable Liquid Service)

**Extendable up to May 1, 2027, if the Secretary finds that insufficient retrofitting shop capacity will prevent the phase-out of tank cars not meeting the DOT-117, DOT-117P, or DOT-117R by the deadline.

*Extendable up to May 1, 2031, if the Secretary finds that insufficient retrofitting shop capacity will prevent the phase-out of tank cars not meeting the DOT-117, DOT-117P, or DOT-117R by the deadline.

Non-jacketed DOT-111s

Jacketed DOT-111s

Non-jacketed CPC-1232’s

Jacketed CPC-1232s

Rail Tank Car Retrofit Regulations

62

Rail Group Earning Power

Sources of Income

• Generates lease income from long-lived assets

• Maximizes value by remarketing assets opportunistically

• Provides repair services embedded in leases and to third parties

Total Rail

$ in millions YE 2015 YE 2016 YE 2017 YE 2018 YTD 2019

Average # of Assets 23,017 23,057 23,314 22,693 24,041

Beg. $ on Bal. Sheet $297.7 $338.1 $327.2 $521.8 $660.5

Average % Utilization 92.4% 87.8% 85.0% 90.3% 93.5%

$ in millions YE 2015 YE 2016 YE 2017 YE 2018 YTD 2019

Revenue $170.8 $163.7 $172.1 $174.2 $123.5

Gross Profit $67.7 $55.9 $52.5 $54.8 $42.5

Gross Profit % 39.6% 34.1% 30.5% 31.5% 34.4%

Pretax Income $50.7 $32.4 $24.8 $17.4 $10.6

63

Income$ in millions FY 2015 FY 2016 FY 2017 FY 2018 YTD 2019

Lease Income $31.5 $13.2 $8.9 $8.1 $8.0

Railcar Sale Income $13.3 $11.0 $11.0 $2.4 $1.1

Services & Other Income $5.9 $8.2 $4.9 $6.9 $1.5

investor presentation - the andersons, inc

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