Golden Growers Coop · OTC:GGROU
Golden Growers Coop — Golden Growers Cooperative — Shareholder Meeting (2020)
54 slides from Golden Growers Coop's shareholder meeting presentation, 2020
Slide 1: 2020 Annual Meeting: Keeping the Flame Burning
2020 Annual Meeting 25 YEARS Keeping the Flame Burning 1
Slide 2: Forward Looking Statements
Forward Looking Statements Presentations at this meeting could include discussions of some of our expectations regarding Golden Growers Cooperative’s and ProGold LLC’s future performance. These forward-looking statements are based on our current views and assumptions. Actual results could differ mat
Slide 3: Rules for Participation
Rules for Participation MUTE • Phone – use mute button or press *6 • Computer – use the mute button on the GoToMeeting application FOR QUESTIONS • Use the CHAT feature of the GoToMeeting application • OR you can TEXT a question to 701-799-0891 3
Slide 4: Secretary, Golden Growers Cooperative
Secretary, Golden Growers Cooperative 4
Slide 5: Rules for Elections
Rules for Elections NOMINATIONS FROM FLOOR • You must be from the District of the person you are nominating. • You must have the permission of the nominee • Notice of Intent to Nominate must be provided by CHAT or TEXT (701-799-0891) prior to the Elections portion of the meeting. • Nominee CHAT or T
Slide 6: Chairman, Golden Growers Cooperative
Chairman, Golden Growers Cooperative 6
Slide 7: Adjusting to a Unique Situation
Adjusting to a Unique Situation • Serious Public Health Risk • The Center for Disease Control, State, and Local officials are recommending ‘social distancing’ • More Information • CDC website • State Health Dept Websites 7
Slide 8: Meeting by Remote Participation
Meeting by Remote Participation • Our Annual Meeting is being conducted according to Bylaws allowing for Remote Participation. • If you are unable to view the our presentation slides through GoToMeeting, they are available on the Golden Growers Website. • By voting by mail or by email, you will cont
Slide 9: Unique Year for Farmers Too
Unique Year for Farmers Too dl Golden Growers Cooperative
Slide 10: Unique Year for Farmers Too
Unique Year for Farmers Too 10
Slide 11: Keeping the Flame Burning
2020 Annual Meeting 25 YEARS Keeping the Flame Burning 11
Slide 12: North District
North District Shaun Beauclair David Benedict Mark Harless Glenn Johnson 12
Slide 13: Central District
Central District Gary (Butch) Jirak Brett Johnson Chris Johnson Nick Pyle 13
Slide 14: South District
South District Richard Bot Les Nesvig Bruce Speich Larry Vipond 14
Slide 15: At Large Directors
At Large Directors Matt Hasbargen Scott Jetvig Byron Koehl 15
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Slide 17: Glenn Johnson: First elected in 2008
GLENN JOHNSON First elected in 2008 17
Slide 18: Chris Johnson: First elected in 2008
CHRIS JOHNSON First elected in 2008 18
Slide 19: Beauclair: First elected in 2008
BEAUCLAIR First elected in 2008 19
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Slide 21: Approval of 2019 Minutes
Approval of 2019 Minutes
Slide 22: Today's Agenda
Today’s Agenda • Election of Directors • Financial Reports • Chairman’s Report • Management Report • Question & Answers • Adjourn 22
Slide 23: Secretary, Golden Growers Cooperative
Secretary, Golden Growers Cooperative 23
Slide 24: Elections
ELECTIONS
Slide 25: Nominations from the North District
Nominations from the North District Three-Year Term Nominated by Petition: Mark Harless Borup, MN 25
Slide 26: Nominations from the South District
Nominations from the South District Three-Year Term Nominated by Petition: Richard Bot Minneota, MN 26
Slide 27: Elections
ELECTIONS
Slide 28: Chair, Finance & Audit Committee
Chair, Finance & Audit Committee 28
Slide 29: 29
29
Slide 30: Finance & Audit Committee
Finance & Audit Committee • Provide oversight of Cooperatives finances • Require effective internal controls • Meet with the auditors to ensure acceptable business practices. • Responsible for annual audits and other audits as needed. • Establish annual budget. 30
Slide 31: Statement of Operations
Statement of Operations x Thousands Year Ended December 31 2018 2019 Corn Revenue $ 50,201 $ 54,296 Corn Expense (50,152) (54,336) Net Income from ProGold LLC 6,924 7,659 General & Administrative (535) (565) Net Income from Operations 6,339 7,054 Income 82 181 Net Income $ 6,421 $ 7,235 Earnings / U
Slide 32: Balance Sheets
Balance Sheets x Thousands Year Ended December 31 Assets 2018 2019 CURRENT ASSETS Cash & Cash Equivalents $ 2,403 $ 3,228 Short-term Investments 2,758 1,807 Other Current Assets 244 275 TOTAL CURRENT ASSSETS 5,405 5,310 Long-term Investments 2,163 3,220 Investment in ProGold llc 18,481 18,059 TOTAL
Slide 33: Balance Sheets
Balance Sheets x Thousands Year Ended December 31 Liabilities & Members’ Equity 2018 2019 CURRENT LIABILITIES Accounts Payable $ 1 $ 2 Accrued Liabilities $ 212 $ 208 TOTAL CURRENT LIABILITIES 213 210 NON-CURRENT LIABILITIES - - TOTAL LIABILITIES $ 213 $ 210 33
Slide 34: Balance Sheets
Balance Sheets Liabilities & Members’ Equity Year Ended December 31 2018 2019 MEMBERS’ EQUITY $ 25,836 $ 26,379 Membership Units, 15,490,480 Accumulated Other Comprehensive Income (Loss) - - Total Member’ Equity 25,836 26,379 TOTAL LIABILITIES & MEMBERS’ EQUITY $ 26,049 $ 26,589 34
Slide 35: Keeping the Flame Burning
2020 Annual Meeting 25 YEARS Keeping the Flame Burning 35
Slide 36: Chairman, Golden Growers Cooperative
Chairman, Golden Growers Cooperative 36
Slide 37: Election Results
ELECTION RESULTS
Slide 38: Keeping the Flame Burning
Keeping the Flame Burning Golden Growers Cooperative 38
Slide 39: 25th Anniversary
th 25 Anniversary Elected Board Exciting Time • MN, ND, SD all wanted ProGold • ND Special Session to approve incentives • 2100 GGC Members invested $54 million • Ground Breaking Scheduled 39
Slide 40: Flame Still Alive
Flame Still Alive Tough Years • If not for leaders at that time, flame could had died out • 25 years later, over 200% of that original investment has been returned to members. 40
Slide 41: Keeping the Flame Alive
Keeping the Flame Alive Position the ProGold for the future • $750,000/year infrastructure spending • Replacing the Distributive Control System • Tube Sheet Dryer major repair 41
Slide 42: Natural Gas to Feed the Flame
Natural Gas to Feed the Flame Current Status • 6” Pipe Supplies Gas from East • Curtailed Industrial Use in Winter Months • Plant is not Fully Utilized • New Industry or Expansion Prohibited 42
Slide 43: Possible Natural Gas Solutions
Possible Natural Gas Solutions 1. Parallel Pipe: Vergus, MN to Wahpeton –Siting difficult through wetlands/waterways 2. Mapleton, ND to Wahpeton –$60 Million (minimum) to build 3. Solutions Utilizing ND Sourced Gas –Northern Border & Alliance 43
Slide 44: North Dakota Sourced Gas
North Dakota Sourced Gas Northern Border Pipeline • Plenty of Gas • Most Expensive to Build – 100 miles Alliance Pipeline • Least Expensive to Build • Wet Gas • Aux Sable Charges make gas Expensive 44
Slide 45: Group Effort
Group Effort Wahpeton Community Local Legislators Governor’s Office Industrial Users • Identify Solution by Early Summer • Proposal with Statewide Application 45
Slide 46: Focus: Shareholder Value
Focus: Shareholder Value Shorter Term • Build Cash Reserve – Level Distributions Longer Term • Investments in Infrastructure & Capital • Solution for Affordable/Reliable Gas 46
Slide 47: Final Thoughts
Final Thoughts Unprecedented Times • Rapidly Changing Situation • Agriculture Will be Impacted • Months from Now – Different Place • Take Care of Yourselves, Family, Neighbors • Next Year – Flame will Burn a Little Brighter 47
Slide 48: Executive Vice President, Golden Growers Cooperative
Executive Vice President Golden Growers Cooperative 48
Slide 49: Cooperative Administration
Cooperative Administration Electronic Communication More Important • Printing Services May be Stretched Thin • If you aren’t receiving emails, send your email to scotts@goldengrowers.com • Use of Direct Deposit Even More Important – Presently: 1062 Participants, 70% of Members • May rely more on ema
Slide 50: Cooperative Administration
Cooperative Administration Uncashed Checks • Considerable Time is Spent to Get People to Cash Checks – Starting in 2020, Golden Growers will Charge $25 for each reprinted check UNLESS the member signs up for Direct Deposit 50
Slide 51: Thank You!
Thank You! • Board of Directors • Eide Bailly • Widmer Roel • Forum Printing • Fredrikson & Byron • Vogel Law Firm • Bell Bank • GGC Members 51
Slide 52: Your Questions
YOUR QUESTIONS
Slide 53: Forward Looking Statements
Forward Looking Statements Presentations at this meeting could include discussions of some of our expectations regarding Golden Growers Cooperative’s and ProGold LLC’s future performance. These forward-looking statements are based on our current views and assumptions. Actual results could differ mat
Slide 54: Keeping the Flame Burning
2020 Annual Meeting 25 YEARS Keeping the Flame Burning 54
Golden Growers Cooperative — Shareholder Meeting (2020) on 6ix