Koch ag and energy solutions wichita ks

CON FIDEN TIAL

P ro fe s s io n a l De ve lo p m e n t, Ca re e r Fu lfillm e n t a n d

O p tio n s W e n d y W h e e le r

1

CONFIDENTIAL

INTRODUCTION

WENDY L WHEELER, P.E.-KS, CCEP (SCCE)/LPEC (ECI)

CURRENT ROLE: Sr. V.P. Compliance & Ethics, Koch Ag & Energy Solutions

2

ME AS ME

• 2005 – Married Dr. John Wheeler – DCA

(Wheeler Chiropractic & Acupuncture)

• Vance (12): Basketball, Baseball, Football, Track, Hunting, Dirt Biking

• Rachel (8 ½): Helping all adults, Resident comedian, Piano, Rock climbing

• Amber (7): Gymnastics, Violin, Singing, Roller Skating, Racing her brother

• Towanda, KS (NE of Wichita) • Central Christian Academy - Wichita

3

My Family Adventures

On the Go Go Go

4

Beauties and the Beast My kids amaze & inspire me

5

Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy • Don’t judge your enjoyment/fulfillment by your first 1-4 years in a full time job.

• You may be productive, but the work isn’t necessarily representative of future years. Think of it as your second college degree and be thankful for the work. Focus on learning/skill building and let your work ethic set you apart.

• Your career is constantly evolving, and taking risks may be necessary to get where you want to go.

• This may include turning down opportunities that appear to be a promotion (short term vs. long term thinking).

• Only you really know what you enjoy the most, & your priorities, which change. • Be intellectually honest – it makes decision making easier.

• You are more likely to be highly productive if you enjoy important components of your job. You are also more likely to be happy.

• BUT work is work – that is why you get paid 

• Be true to yourself and your interests, but understand what various business/industries value (pay attention to the market and re-tool as needed to continue to be valued).

• Particularly important if you are highly specialized 6

About Koch

• I’m not here particularly to promote Koch, or working in private industry vs consulting or the range of options you may have available to you.

• It’s where I work, and I think it provides a relevant example of career choices within large multinational companies.

• My perspectives fall against the backdrop of my experiences, which career-wise are at Koch.

• Speed-overview- happy to talk more about the company during Q&A or after class.

7

CONFIDENTIAL8

In addition to the wholly-owned subsidiaries above, Koch also holds minority investments in innovative companies that represent potential new growth platforms, including:

Platform Acquisition

 Fuels & aromatics  Olefins & polymers  Biofuels &

ingredients

 Consumer products  Pulp, paper,

packaging  Building products

(2005)

 Nylon intermediaries & polymers

 Premium apparel & performance nylon fibers

(2004)

 Commodity trading  Risk management  Logistics &

operations

 Pet coke  Coal, cement, sulfur  Oil & natural gas

properties

 Mass transfer, mist elimination

 Low emission burners  Membrane separation  Heat exchangers

(2013)

 Commercial & micro connectors

 Integrated electronic products

(2017)

 Float & fabricated glass

 Chrome plated plastic parts

 Closely Held Private Company  Annual Revenue ~$115 Billion  Worldwide Employees ~120,000  Presence in ~60 Countries  Reinvests up to 90% of earnings  Headquartered in Wichita, KS

KOCH COMPANIES

 Fertilizer  Enhanced Efficiency

Solutions  Natural gas  Methanol

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCI7Q-aWZhMgCFQYakgodyGIEMQ&url=http://www.hdatruckpride.com/Suppliers/Truck-Lite.aspx&psig=AFQjCNEJj-B9mqRy8o5_Dy8vJO1o631Tmg&ust=1442789882356912
CONFIDENTIAL

KOCH INDUSTRIES – VISION

• Help people improve their lives by providing products and services they value more highly than their alternatives, and doing so while consuming fewer resources

Role of Business

• Remain private and reinvest 90% of net income

• Maintain integrity and compliance

• Driving continuous improvement

Fulfilling the role

• MBM®

• Commercial excellence

• Operations excellence

• Talent

• Innovation

• Public sector

Develop & Apply Capabilities

• Increased value creation for customers and suppliers

• Motivate other companies to practice Principled Entrepreneurship™ through advocating market-based policies that encourage prosperity, opportunity, self- help, and self-worth

• Generate business opportunities, new and better jobs, and safer communities

Benefits to Society by Fulfilling our Vision

KII’s Vision statement was revised in 2018 to more accurately reflect the company in its current form, and to better articulate what is needed in order to continue down a successful path.

9

CONFIDENTIAL10

MBM® GUIDING PRINCIPLES

Stewardship & Compliance Act with proper regard for the rights of others. Put safety first. Drive environmental excellence and comply with all laws and regulations. Stop, think and ask.

2

Integrity Have the courage to always act with integrity.

1

Principled Entrepreneurship™ Practice a philosophy of mutual benefit. Create superior value for the company by doing so for our customers and society. Help make Koch the preferred partner of customers, employees, suppliers, communities, and other important constituencies.

3

Transformation Transform yourself and the company. Seek, develop and utilize the visions, strategies, methods and products that will enable us to create the greatest value.

4

Knowledge Acquire the best knowledge from any and all sources that will enable you to improve your performance. Share your knowledge proactively. Provide and solicit challenge consistently and respectfully.

5

Humility Be humble, intellectually honest and deal with reality constructively. Develop an accurate sense of self-worth based on your strengths, limitations and contributions. Hold yourself and others accountable to these standards.

6

Respect Treat everyone with honesty, dignity, respect and sensitivity. Embrace different perspectives, experiences, aptitudes, knowledge and skills in order to leverage the power of diversity.

7

Self-Actualization Be a lifelong learner and realize your potential, which is essential for fulfillment. As you become increasingly self-actualized you will better deal with reality, face the unknown, creatively solve problems, and help others succeed.

8

Market-Based Management’s Guiding Principles define Koch’s shared values and beliefs, and set the standards for evaluating policies, company practices, and employee conduct.

CONFIDENTIAL11

KOCH COMPANIES – ROBUST INVESTMENT HISTORY • Koch has a successful history of enhancing long-term shareholder value by leveraging capabilities

through acquisitions and principal investments

• Certain attributes position Koch as a uniquely attractive acquirer / capital provider - Funding capacity / certainty of close - Streamlined review and commitment process

- Long-term perspective - Lack of public company restrictions

- Confidentiality - Structuring flexibility to meet sellers’ unique needs

Notes (1) Corporate seller noted in parentheses (2) Companies highlighted in blue are part of Koch Ag & Energy Solutions (3) Principal investment

Selected Acquisitions and Principal Investments (2002 – Present)(1)(2)

Olefin Chemical Assets (Huntsman), 2007 Mill (Smurfit-Stone Containerboard), 2007 Orbis Container Services, 2009 OSB Facility (Grant Forest Products), 2010 Pulp Mills (Parsons & Whittemore), 2010 Hawkeye Growth Ethanol Plants, 2010 Hamworthy Combustion Engineering, 2011 Beatrice Biodiesel Facility, 2011 Hawkeye Renewables Ethanol Plants, 2011 Agrotain (Lange-Stegmann), 2011 Emergency Medical Services Corp.(3) , 2011 Farmers Plant Food, 2012 Building Product Assets (Temple Inland), 2013

Ethanol Plant (Advanced BioEnergy), 2012 Guardian Industries(3), 2012 American Greetings(3), 2013 Buckeye Technologies, 2013 Molex Technologies, 2013 Ethanol Plant (Platinum Ethanol), 2013 T&O Production Assets (Agrium), 2014 Flint Group (CVC)(3), 2014 PetroLogistics, 2014 Mendel Biological Solutions, 2014 Oplink Communications, 2015 Infor(3), 2016 Guardian Industries, 2017

Colonial Pipeline Interest (BP), 2002 Fertilizer Assets (Farmland), 2003 Excel ParaLubes (Shell), 2003 Alaskan Oil Refining Assets, 2004 INVISTA (Dupont), 2004 Pulp Mills (Georgia Pacific), 2004 Chemical Assets (BP), 2004 Georgia Pacific, 2005 Canadian Nitrogen Assets (JR Simplot), 2006 Insulair, 2006 Coen Company, 2007 Nylon 6 Fiber Business (Honeywell), 2007 Wood Mills (International Paper), 2007

Koch Ag & Energy Solutions Overview September 2018

12

CONFIDENTIAL

KOCH AG & ENERGY SOLUTIONS – INTRODUCTION

Koch Ag & Energy Solution Vision Be a leader in delivering superior value in the agriculture, energy, and chemical industries by: 1) Maximizing the long-term value of our existing businesses 2) Delivering innovative solutions to meet customers’ changing needs 3) Identifying, investing in, and developing advantaged assets and capabilities

Koch Ag & Energy Solutions (“KAES”) Mark Luetters, President

Koch Energy Services Walker Hess, EVP

Koch Methanol Jim Sorlie, EVP

Koch Fertilizer Scott McGinn, EVP

North America Natural Gas Supply & Marketing

North America Production & Distribution

Ammonia Trading & Offshore Investments

Ag Products

Turf & Ornamental / Consumer Products

International Terminals & Trading

Koch Agronomic Services Justin Hoppas, EVP

Biological Solutions

Supply & Marketing

13

Matador Cattle Company Damon Cox, President

North America Production & Distribution

CONFIDENTIAL

KOCH FERTILIZER – NORTH AMERICAN ASSETS

Brandon, MB Production Facility

Dodge City, KS Production Facility

Beatrice, NE Production Facility

Ft. Dodge, IA Production Facility

14

• Koch Fertilizer has four production assets in the United States and one in Canada that together produce 4.4MM ST annually

• Koch Fertilizer is the third largest ammonia producer in North America and seventh largest in the world(1)

• Urea expansion project at the Enid, OK, plant came online in Q4’17 • Expanding presence in phosphate, potash, and value-added products

Source: IFDC (1) Excludes Chinese state owned enterprise JAMG and Indonesian consortium PT Pupuk

Enid, OK Production Facility

Liquid Terminal

Production Facility Off-Take Facility

Dry Terminal

Ammonia Terminal

NuStar Pipeline

Magellan Pipeline

# of Region Locations Ammonia Dry UAN Production 5 299 83 205 Corn Belt 23 410 79 62 Delta 6 105 52 - East Coast 1 - 50 - Northwest 11 120 33 102 Southwest 11 115 10 34 Canada 5 - 36 46

North America 62 1,049 343 449

Storage Capacity (000 ST) North American Terminal Network

North American Production Facilities

Plant Ammonia Urea UAN Beatrice 237 - 204 Brandon 148 113 710 Dodge City 179 - 269 Enid 437 1,267 115 Fort Dodge 127 - 561

Total 1,129 1,380 1,858

Annual Capacity (000 ST)

CONFIDENTIAL

Nitrogen production (ownership / offtake) Nitrogen offtake / supply

Potash offtake / supply

Sales and marketing office

Dry products terminal

Phosphate offtake / supply

KOCH FERTILIZER – INTERNATIONAL ASSETS

15

International Terminals & Distribution

# of Total Capacity

(000 MTs) Terminals Dry

Asia / Pacific Australia 5 250

Latin America Brazil 1 57 Mexico 1 25

All Regions 7 332

International Production / Offtake Annual Volume (000 MTs)

Ammonia Urea Phosphate Trinidad 1,400

Middle East - 1,000 -

Other - 350 1,000

1,400 1,350 1,000

CONFIDENTIAL

Agriculture Turf & Ornamental Biologicals

Enhanced efficiency fertilizers and additives designed to optimize yield

potential and protect growers’ fertilizer investments by minimizing

nitrogen losses to volatilization, denitrification, and leaching.

Nitrogen stabilizers, controlled-release and slow-release technologies

specially developed to provide needed nutrition to turfgrass and ornamental plants while reducing potential losses

to the environment.

Focused on developing products that are science-based, live-microbial and biologically-derived innovations that improve plant performance in every

stage of the growing cycle. As a result, both efficiency and nutrient uptake

are improved, resulting in higher yield potential.

KAS was formed in 2011 to provide solutions focused on maximizing plant performance and minimizing environmental impact.

KOCH AGRONOMIC SERVICES

16

• Research & Development • Chemistry & Biology • Global Solution Selling • Agronomy

• Supply Chain • Strategic Marketing & Innovation • Licensing

Core Capabilities:

CONFIDENTIAL

KOCH METHANOL

17

Pillars for Growth: • Building global methanol trading business:

– Aggregate demand and buying power of Koch methanol consumption

– Leverage global freight and trading capability • European trading operations (started in 2013)

Logistics: • Offices in Wichita, Houston, and Beijing • Import terminals: Houston, TX;

Charleston, SC; Norfolk, VA • Rail Cars: 270 total • Trucks: 800 shipments / month • Dedicated commercial & logistics

team Production: • Majority equity stake in a methanol facility in St.

James Parish, LA with capacity of 1.7 million MT • Full offtake rights on the 1.7 million MT produced

2017 North America Methanol Sales

(Metric Tons)

Affiliate Consumption 264,000

3rd Party Sales 214,000

Total N.A. Sales 478,000

KMe was formed in 2009 to procure and optimize Georgia Pacific, INVISTA, and Flint Hills Resources methanol demand as well as to pursue growth opportunities across the methanol value chain.

2017 International 3rd Party Methanol Sales

(Metric Tons)

Intern. 3rd Party Sales 36,000

Total Methanol Sales 514,000

Large Koch Demand

Import Locations

Methanol Production (ownership / offtake)

Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy Don’t judge your enjoyment/fulfillment by your first 1-4 years in a full time job.

You may be productive, but the work isn’t necessarily representative of future years. Think of it as your second college degree and be thankful for the work. Focus on learning/skill building and let your work ethic set you apart.

• Going from college to full time work was a challenge for me. • Some weeks I was completely overwhelmed by a project I’d been given

with limited direction and urgent time frames (not for lack of care – everyone is busy, my supervisor was often traveling). • At times “project managing” consultants who had 15-30 years more experience.

• Other weeks I was bored, unsure if what I was doing was even useful, and wondering what a “normal” time to complete certain tasks might be.

• I had limited input in what I was working on – I didn’t have “specialty” skills so I got the work that nobody else wanted or had time to do.

• No preference on vacation or holidays. • Generally at office 11-12 hours per day, not including when traveling. • I wasn’t connected to how what I was doing was meaningful outside of the

economic outcome/risk management aspects (environmental).

18

Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy Your career is constantly evolving, and taking risks may be necessary to get where you want to go.

This may include turning down opportunities that appear to be a promotion (short term vs. long term thinking).

• Some of my best career decisions were to turn down an opportunity that was clearly a short-term upgrade or not aligned with my directional interests. • These are the decisions that were most helpful to seek counsel on from those with an

external perspective, who knew me the best. • I have taken on roles where at least some component of the role resulted in

performance failure. No risk = limited reward. • Most failures aren’t permanent set-backs. Handling set-backs in a professional manner

may actually get you ahead in the long run. • I have seen role scope reductions in many senior leaders for a wide variety of reasons. • Many times there is mis-alignment between interest, capability, and the role, or the

needs of the role change. These changes may spur you to make a change in direction, or to step up your game on self-education. Either way, your Mindset Matters.

19

Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy Only you really know what you enjoy the most, & your priorities, which change. Be intellectually honest – it makes decision making easier.

• Be careful about other’s expectations – even if well meaning, they can create pressure to head a different direction than what will really be beneficial. • Application of Pro’s/Con’s for career opportunities is a simple way to evaluate

fit. These lists often include a lot that relates to your personal life. • You don’t have to share all of your reasoning if you do select out of an

opportunity. • Most situations for me, I knew quickly if it was not a fit, but I churned over

the decisions (stressed) based on other’s expectations. • If you make a choice that you think wasn’t the best decision, it’s not the end

of the world. People move back to old roles before finding new paths.

20

Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy

You are more likely to be highly productive if you enjoy important components of your job. You are also more likely to be happy.

BUT work is work – that is why you get paid  • Every role I have had I’ve loved, but there have been parts/pieces that I’ve

truly disliked.

Be true to yourself and your interests, but understand what various business/industries value (pay attention to the market and re-tool as needed to continue to be valued).

Particularly important if you are highly specialized • The role that I am in today didn’t exist as a career when I started at Koch.

Things change, so should you. • Rate of technology change is high, but that’s not it. You can’t expect to

continue to progress in your career if you aren’t adding tools to your toolkit. Having only 1-2 really great skills is limiting, and potentially risky.

• “Soft skills” can be developed through involvement in a wide variety of opportunities – don’t expect your workplace to just “develop you”.

21

Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy Don’t judge your enjoyment/fulfillment by your first 1-4 years in a full time job.

You may be productive, but the work isn’t necessarily representative of future years. Think of it as your second college degree and be thankful for the work. Focus on learning/skill building and let your work ethic set you apart.

Your career is constantly evolving, and taking risks may be necessary to get where you want to go.

This may include turning down opportunities that appear to be a promotion (short term vs. long term thinking).

Only you really know what you enjoy the most, & your priorities, which change.

You are more likely to be highly productive if you enjoy important components of your job. You are also more likely to be happy.

BUT work is work – that is why you get paid 

Be true to yourself and your interests, but understand what various business/industries value (pay attention to the market and re-tool as needed to continue to be valued).

Particularly important if you are highly specialized

22

Professional Development, Career Fulfillment and Options�Wendy Wheeler
Slide Number 2
ME AS ME
My Family Adventures
Beauties and the Beast�My kids amaze & inspire me
Professional Development, Career Fulfillment and Options: Key Takeaways from Wendy
About Koch
Slide Number 8
Slide Number 9
Slide Number 10
Slide Number 11
Koch Ag & Energy Solutions Overview
Slide Number 13
Slide Number 14
Slide Number 15
Slide Number 16
KOCH METHANOL