REX: NYSE www.rexamerican.com Zafar Rizvi Chief Executive Officer Doug Bruggeman Chief Financial Officer February 2016
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements can be identified by use of forward-looking terminology such as project, may, expect, estimate, anticipate, or continue or the negative thereof or other variations thereon or comparable terminology. You are cautioned that there are certain risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties are described in our filings with the Securities and Exchange Commission. 2
REX Overview Successful alternative energy investor since 1998 Synfuel investments of $6M yielded ~$178M return over 10 years (~40% CAGR) Discontinued legacy retail operations in FY 09 to focus on alternative energy Ownership in six ethanol production facilities In aggregate, 631 million gallons of TTM annualized gallons shipped REX effective ownership interest of TTM annualized gallons shipped = 233 million gallons Pre-tax ROI s of 42% to 86% (trailing four years annualized for period ending 10/31/15) Revenues diversified across ethanol, distillers grains & corn oil ROE-focused asset allocation discipline Insider ownership approximately 18% Strong and liquid balance sheet (as of 10/31/15 based on 6.9M shares) Working Capital of $161.2M or >$23 per share Shareholder Equity $317.6M or > $46 per share 3
REX Ethanol Strategy Disciplined investment criteria Invest only if project meets strategic and financial risk and return criteria Align with farmers, farm cooperatives and farming communities as co-investors and owners of ethanol production facilities Facilitates access to grain supply, local community support Locate plants close to rail access and feedstocks Utilize state-of-the-art ethanol production technology Dry mill corn-processing All plants are highly efficient Fagen, Inc. constructed utilizing ICM, Inc. technology Fagen the largest, most respected green energy design-builder in the U.S. Seek to match grain prices with ethanol and distiller grain sales at consolidated plants Maximize ethanol plant returns Run plants efficiently, often producing above nameplate capacity Sell distillers grains as animal feed Produce and sell corn oil Paid off all consolidated plant level debt 4
REX Corn Belt Ethanol Portfolio South Dakota NUGEN ENERGY, LLC Marion, SD REX OWNERSHIP INTEREST 99.5% TTM GALLONS SHIPPED 117.4 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 116.8 MILLION Illinois ONE EARTH ENERGY, LLC Gibson City, IL REX OWNERSHIP INTEREST 74.7% TTM GALLONS SHIPPED 111.5 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 83.3 MILLION Iowa BIG RIVER UNITED ENERGY, LLC Dyersville, IA REX OWNERSHIP INTEREST 4.9% TTM GALLONS SHIPPED 123.7 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 6.1 MILLION REX AMERICAN RESOURCES TTM GALLONS SHIPPED BY PLANTS IN WHICH IT HAS INTERESTS 631.3 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 233.1 MILLION Wisconsin BIG RIVER RESOURCES BOYCEVILLE, LLC Boyceville, WI REX OWNERSHIP INTEREST 9.7% TTM GALLONS SHIPPED 56.9 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 5.5 MILLION Iowa BIG RIVER RESOURCES WEST BURLINGTON, LLC West Burlington, IA REX OWNERSHIP INTEREST 9.7% TTM GALLONS SHIPPED 106.0 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 10.3 MILLION Illinois BIG RIVER RESOURCES, GALVA, LLC Galva, IL REX OWNERSHIP INTEREST 9.7% TTM GALLONS SHIPPED 115.8 MILLION REX S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 11.2 MILLION Data as of 10/31/15 5
High Return Ethanol Investments Plant Investment Timeline REX Total Investment Cumulative Earnings (10/31/15) REX Trailing Four Year Annualized ROI (10/31/15)* One Earth Oct. 07 Production July 09 $51M $116M 42% NuGen June 10 ($12.3M) Nov. 11 ($19.7M) $32M $122M 86% Big River Oct. 06 ($5.0M) Jan. 07 ($5.0M) July 07 ($10.0M) Sept. 09 ($0.03M) $20M $52M 43% Total $103M $290M * Calculated based upon the weighted average capital invested and pre-tax returns generated over the time period. 6
Ethanol Industry Considerations The ethanol industry produced approximately 14.7 billion gallons of ethanol in 2015, thereby reducing U.S. reliance on foreign oil Helps U.S. balance of trade Helps U.S. move towards energy independence Over 527 million barrels of imported oil displaced (valued at ~$26 billion Approximately 1/3 of corn used in ethanol production is returned to feed market in the form of distiller grains, corn gluten meal and corn oil* National benefits Government payments to corn growers have fallen from nearly $9 billion in 2006 to less than $2 billion in 2013* Ethanol production generates higher tax revenues Ethanol production added ~$43.9 billion to GDP* Ethanol production increased household income by ~$23.5 billion* $8.7 billion paid in federal, state and local taxes* Industry receives no tax subsidies Farm states are less impacted by challenged economic environment Ethanol estimated to have supported over 357,000 jobs, including across ancillary industries, from agriculture to manufacturing to the service sector* On a life cycle basis, corn-based ethanol reduces greenhouse gas emissions (GHGs) by ~34% compared to gasoline 14.3 billion gallons of ethanol reduced GHG emissions by 39.6 million metric tons, the equivalent of taking 8.4 million cars off the road* Sources: Renewable Fuels Associations 7
Expense / Demand / Pricing Drivers Corn USDA crop production: 2015 (January 2016 report) 13.6 billion bushels (average acre yield of 168.4 bushels) 2014 (January 2015 report) 14.2 billion bushels (average acre yield of 171.0 bushels) 2013 (January 2014 report) 13.9 billion bushels (average acre yield of 158.8 bushels) 2012 (November 2012 report) 10.7 billion bushels (average acre yield of 122.3 bushels) Ethanol Federal EPA ethanol purchasing mandates (1) : Year Final Standards (2) 2014 13.61 billion gallons 2015 14.05 billion gallons 2016 14.50 billion gallons Exports ~ 836M gallons exported to 76 countries in 2015 (Renewable Fuels Association) Capacity Year Nameplate 2014 15.1 BGY (14.6 in operation at Jan. 2015) Distillers Grains / Corn Oil Approximately 1/3 of every bushel of grain is returned to the animal feed market 1 Mandates can be partially met via RINS from prior years toward the current year requirements and/or to carry forward a deficit into the next compliance year. 2 Finalized November 30, 2015. 8
U.S. Ethanol Exports In 2015, the U.S. Exported 836 Million Gallons of Ethanol to 76 Countries In Millions of Gallons of Ethanol 1,200 1,193 1,000 800 600 732 617 836 836 400 396 200 0 150 158 113 63 37 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sources: U.S. Census Bureau, Department of Commerce, and Department of Agriculture 9
U.S. Ethanol Exports Top Markets for U.S. Ethanol Exports in 2015 In Millions of Gallons of Ethanol Mexico 33.7 Netherlands 34 India 47 Tunisia 25.9 Oman 32.8 South Korea 59.6 Other 95.4 China 70.5 Philippines 71.5 Canada 249.2 Brazil 116.4 % of Total U.S. Exports Canada 30% Brazil 14% Philippines 9% China 8% South Korea 7% India 6% Netherlands 4% Mexico 4% Oman 4% Tunisia 3% Other 11% Sources: U.S. Census Bureau, Department of Commerce, and Department of Agriculture 10
REX Sales Mix Revenue Mix TTM 7/31/15 Revenue Mix TTM 7/31/14 Distillers Grains $87.0M 19.0% Corn Oil $16.0M 3.5% Distillers Grains $115.3M 19.5% Corn Oil $17.7M 3.0% Syrup $0.4M 0.1% Ethanol $353.3M 77.4% Syrup $0.2M 0.04% Ethanol $457.1M 77.4% Total TTM 10/31/15 Revenue of $456.7M Total TTM 10/31/14 Revenue of $590.3M TTM Sales Mix TTM 10/31/15 TTM 10/31/14 Ethanol $353,263,947 77.4% $457,080,006 77.5% Distillers Grains 87,013,471 19.0% 115,275,679 19.5% Corn Oil 15,988,442 3.5% 17,722,245 3.0% Syrup 389,608 0.1% 217,297 0.0% TOTAL $456,655,468 100% $590,295,227 100% 10
Crush Spread Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Crush Spread = price of 1 gallon of ethanol - cost of corn to produce it One bushel of corn makes ~2.8 gallons of ethanol Crush spread = Ethanol price (Corn bushel price / 2.8) Crush spread excludes other production, transportation costs, etc. 1 CBOT Crush Spread Trend (cents per gallon) 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 11
Operating Results $ in millions, except per share data Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Total net sales and revenue $110.6 $138.4 $329.3 $444.6 Gross profit $14.3 $36.5 $41.7 $112.0 Net income attributable to REX Common Shareholders $7.5 $23.3 $27.8 $67.0 Diluted net income per share attributable to REX Common Shareholders $1.08 $2.86 $3.72 $8.20 Weighted average diluted shares outstanding 6.9 8.2 7.5 8.2 13
Strong Balance Sheet October 31, January 31, $ in millions 2015 2015 Cash and cash equivalents $ 136.6 $ 137.7 Total current assets 184.9 175.7 Property & equipment, net 189.1 194.4 Equity method investments 41.1 80.4 Total Assets $ 423.3 $ 456.9 Total current liabilities 23.7 19.6 Deferred taxes (long term) 35.0 42.8 Total REX Equity (excludes non-controlling interests) $ 317.6 $ 350.0 14
Deep Heavy Oil Technology Investment Much of the world s oil reserves are in the form of heavy oil in deposits at depths below 2,000 feet Heavy oil is too viscous to flow to the well at a reasonable rate under ordinary conditions, so technology is needed to help extract it The most practical method developed so far is to inject steam into the reservoir, to raise the temperature thereby reducing the oil's viscosity Current methods are limited by the heat losses on the surface and in the well bore as the steam is sent down the injection well. For any particular heavy oil reservoir and price of oil, there is a maximum depth of the reservoir that can be economically exploited REX invested in patented technology with potential to steam oil at depths currently unattainable Current technology allows for injecting steam below grade to ~2,000 feet to extract heavy oil New downhole steam generator technology seeks to create steam at depths below 2,000 feet to produce deep heavy oil Modest investment / high potential returns REX has invested ~$1.6M (through 10/31/15) for 60% equity stake in technology developer, to secure patents, and to pursue commercialization of the downhole steam generation technology Presently seeking sites/opportunities to test and prove technology 15
REX Summary Successful alternative energy investor since 1998 Interests in six ethanol production facilities with annualized sales of ~631 million gallons (TTM) REX effective ownership interest of annualized TTM gallons sold = ~233 million gallons Pre-tax ROI s of 42% - 86% (trailing four years annualized for period ending 10/31/15) Industry leading ethanol production skill and plant efficiencies REX ethanol operations are among best performing plants Net income of $27.8M in nine months ended 10/31/15 Growth opportunities in ethanol and other industrial sectors Invest in ethanol plants or industrial projects requiring similar skill sets Proven management team with asset allocation discipline Insider ownership of approximately 18% Strong asset base (at 10/31/15): Shareholders equity $317.6M (~$46 per share) Consolidated cash $136.6M Active, long-term share repurchase program FY 15: Repurchased 1,044,773 shares of common stock through 10/31/15 6.9 million shares outstanding as of 10/31/15 Authorized to purchase 452,809 shares of common stock as of 12/2/15 16
Doug Bruggeman Joseph Jaffoni, Norberto Aja REX JCIR Chief Financial Officer 212/835-8500 937/276-3931 rex@jcir.com One Earth Energy, LLC Gibson City, IL