Golden Growers Coop · OTC:GGROU
Golden Growers Coop — Golden Growers Cooperative — Shareholder Meeting (2021)
68 slides from Golden Growers Coop's shareholder meeting presentation, 2021
Slide 1: Meeting etiquette: mute microphone and camera
In order to avoid noise and interference issues, we ask everyone to: • Mute your Microphone and turn off your Camera • Select‘Hide Everyone’ & Identify the Chat Feature 19
Slide 2: A Year Like No Other – 2021 Annual Meeting
A Year Like No Other with hope for better days ahead 2021 Annual Meeting 20
Slide 3: 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 materially from these current
Slide 4: Meeting etiquette: mute microphone and camera
In order to avoid noise and interference issues, we ask everyone to: • Mute your Microphone and turn off your Camera • Select‘Hide Everyone’ & Identify the Chat Feature 22
Slide 5: Submitting questions by chat or text
• Use the CHAT feature of the GoToMeeting application • OR you can TEXT a question to 701-799-0891 • Select ‘Hide Everyone’ on the main menu to avoid a cluttered screen. 23
Slide 6: Matt Hasbargen, Secretary
MATT HASBARGEN Secretary, Golden Growers Cooperative 24
Slide 7: Nominations from floor
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 will also need to CHAT or TEX
Slide 8: Mark Harless, Chairman
MARK HARLESS Chairman, Golden Growers Cooperative 26
Slide 9: Remote participation and voting by mail
• 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. • Voting by mail will contribute to our Quorum. 27
Slide 10: Golden Growers Cooperative
Golden Growers Cooperative
Slide 11: David Benedict, Mark Harless
David Benedict Mark Harless 29
Slide 12: Gary Jirak, Brett Johnson, Nicolas Pyle
Gary (Butch) Jirak Brett Johnson Nicolas Pyle 30
Slide 13: Richard Bot, Les Nesvig, Bruce Speich, Larry Vipond
Richard Bot Les Nesvig Bruce Speich Larry Vipond 31
Slide 14: Matthew Hasbargen, Scott Jetvig, Byron Koehl
Matthew Hasbargen Scott Jetvig Byron Koehl 32
Slide 15: 33
33
Slide 16: Gary 'Butch' Jirak
GARY ‘BUTCH’ JIRAK First elected in 2009 34
Slide 17: Les Nesvig
LES NESVIG First elected in 2009 35
Slide 18: Bruce Speich
BRUCE SPEICH First elected in 2009 36
Slide 19: 37
37
Slide 20: Golden Growers Cooperative
Golden Growers Cooperative
Slide 21: Meeting agenda
• Election of Directors • Financial Reports • Chairman’s Report • Management Report • Adjourn • Guest Speaker – Brian Jennings • Questions 39
Slide 22: Matt Hasbargen, Secretary
MATT HASBARGEN Secretary, Golden Growers Cooperative 40
Slide 23: Golden Growers Cooperative
Golden Growers Cooperative
Slide 24: Floor nominations and voting instructions
If nominating from the floor: • Unmute your microphone, state your name • Must be from the same district as nominee • No seconds required Members who have not yet voted by mail: • Write in floor nominee if candidate is your choice • Mark your ballot • Scan and email or email vote to scotts@goldengro
Slide 25: Nominated by Petition: Larry Vipond
Three-Year Term Nominated by Petition: Larry Vipond Herman, MN 43
Slide 26: Nominated by Petition: Scott Jetvig
Three-Year Term Nominated by Petition: Scott Jetvig Hawley, MN 44
Slide 27: Golden Growers Cooperative
Golden Growers Cooperative
Slide 28: Nick Pyle, Chair, Finance & Audit Committee
NICK PYLE Chair, Finance & Audit Committee 46
Slide 29: Finance and Audit Committee responsibilities
• 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. 47
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48
Slide 31: Clean audit opinion and risk mitigation
‘CLEAN’ opinion – best opinion possible Potential Risks to Cooperative • Lack of Segregation of Duties • Accurate Transactions of Member Interests • Verification of financial transactions Golden Growers’ Risks Mitigation • Eide Bailly contracted for: Payroll; Accounts Payable; and Bank Reconcilation
Slide 32: Income statement 2020 vs 2019
x Thousands Year Ended December 31 2020 2019 Corn Revenue $ 50,563 $ 54,296 Corn Expense (50,606) (54,336) Net Income from ProGold LLC 5,936 7,659 General & Administrative (500) (565) Net Income from Operations 5,393 7,054 Other Income 182 181 Net Income $ 5,575 $ 7,235 Earnings / Unit $ 0.36 $ 0.47
Slide 33: Assets
x Thousands Year Ended December 31 Assets 2020 2019 CURRENT ASSETS Cash & Cash Equivalents $ 3,547 $ 3,228 Short-term Investments 3,438 1,807 Other Current Assets 258 275 TOTAL CURRENT ASSSETS 7,243 5,310 Long-term Investments 1,743 3,220 Investment in ProGold llc 16,976 18,059 TOTAL ASSETS $ 25,962
Slide 34: Liabilities & Members' Equity
x Thousands Year Ended December 31 Liabilities & Members’ Equity 2020 2019 CURRENT LIABILITIES Accounts Payable $ 2 $ 2 Accrued Liabilities 202 208 TOTAL CURRENT $ 204 $ 210 LIABILITIES NON-CURRENT LIABILITIES - - TOTAL LIABILITIES $ 204 $ 210 52
Slide 35: Members' Equity and Membership Units
x Thousands Year Ended December 31 Liabilities & Members’ Equity 2020 2019 MEMBERS’ EQUITY $ 25,758 $ 26,379 Membership Units, 15,490,480 Accumulated Other Comprehensive Income (Loss) - - Total Member’ Equity 25,758 26,379 TOTAL LIABILITIES & MEMBERS’ EQUITY $ 26,962 $ 26,589 53
Slide 36: A Year Like No Other – 2021 Annual Meeting
A Year Like No Other with hope for better days ahead 2021 Annual Meeting 54
Slide 37: Mark Harless, Chairman
MARK HARLESS Chairman, Golden Growers Cooperative 55
Slide 38: Golden Growers Cooperative
Golden Growers Cooperative
Slide 39: A Year Like No Other
A Year Like No Other with hope for better days ahead 2021 Annual Meeting 57
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59
Slide 42: COVID-19 impact on meat packing plants
lowa Included In Federal Investigation Into Meat Packing Plant Virus Outbreaks lowa Public Radio News | By Kassidy Arena Published February 1, 2021 at 3:50 PM CST —- = - Millions Of Pigs Will Be Euthanized As Pandemic Cripples Meatpacking | Plants “ = May 14,2020 7:76 AMET . Heard on Morning Editiai
Slide 43: Ethanol and corn sweeteners impact
ETHANOL • Idled and Closed Facilities • 2 Billion gallon decline in production CORN SWEETENERS • Loss of event, restaurant business • Slight increase in retail • Losses not offset 61
Slide 44: Starch business
STARCH BUSINESS • Online shopping saw major increase • Key component for cardboard boxes 62
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Slide 46: COVID-19 impact on meat packing plants
lowa Included In Federal Investigation Into Meat Packing Plant Virus Outbreaks lowa Public Radio News | By Kassidy Arena Published February 1, 2021 at 3:50 PM CST —- = - Millions Of Pigs Will Be Euthanized As Pandemic Cripples Meatpacking | Plants “ = May 14,2020 7:76 AMET . Heard on Morning Editiai
Slide 47: Harvest, planting and corn price
Harvest: • 2019 wet and muddy • 2020 excellent harvest conditions Planting: • 2020 soggy conditions • 2021 likely very dry Price of Corn: • March 2020 - $3.18/bu vs Late Feb 2021 - $5.30/bu 65
Slide 48: Ethanol policy shift
Ethanol Policy Shift • Fewer small refinery waivers • Carbon Focus • Better environment for renewable fuels • Should be positive for ethanol and corn milling 66
Slide 49: Strategy
Strategy • Build Reserve – level out distributions 67
Slide 50: Plant repairs and upgrades
• Finish Dryer Repair Complete • Distributive Control System • Phased Replacement • On Schedule • Nearly 30-year old plant • Natural Gas Uncertainty Continues 68
Slide 51: Cargill lease and purchase option
Lease continues through 2022 • Possible through 2023 • Cargill’s ‘exclusive’ option to purchase 50% interest continues through 2021 Preparation for Lease Negotiations to Begin 69
Slide 52: Hope for better days ahead
hope for better days ahead 2021 Annual Meeting 70
Slide 53: Scott Stofferahn, Executive Vice President
SCOTT STOFFERAHN Executive Vice President Golden Growers Cooperative 71
Slide 54: Administrative expense trends downward
Administrative Expense Trends Downward 72
Slide 55: Factors influencing distributions and unit value
Influenced by: • Distributions per Unit • Lease Value • Lease Length • Uncertainty 73
Slide 56: Distributions per Unit
Lia Golden Growers Cooperative — Lusiriouatiggas/U iit Distributions per Unit $0.70 $0.60 $0.50 + $0.40 + $0.30 + $0.20 + $0.10 4 sooo |= = = oS 0s 09 10 11 #12 #13 #14 #15 #16 17 #18 #19 20
Slide 57: Average Value/Unit
OT iii ukites: Average Value/Unit $4.00 d $3.00 $2.00 $1.00 $0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 58: Units Sold/Year
(QP SOUS Golden Growers Units Sold/Year Cooperative 15,490,480 Total Units 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 - — 8)
Slide 59: Director term limits and 2022 meeting
In 2020 and 2021 • Three directors reached term limits each year • 2019 Bylaw Amendment – no replacements At 2022 Annual Meeting • 2 Directors are up for Re-election (Central/At-Large) • BUT, Major Opportunity for NEW DIRECTORS 77
Slide 60: Board vacancies at 2022 and 2023 meetings
At 2022 Annual Meeting (3 Vacancies) • North – 2 year term • Central – 1 year term • At-Large – 1 year term At 2023 Annual Meeting (1 Vacancy) • North – 2 year term 78
Slide 61: Board fees and mileage
Board Fees & Mileage • $150 per month • $300 for meetings longer than 4 hours (including travel) • $200 for 2 to 4 hours • $100 for 1 to 2 hours • Mileage reimbursement at IRS rate • Meals and Lodging as appropriate • Liability coverage 79
Slide 62: Director eligibility requirements
• Must be from the District • At-Large Directors can be from Anywhere • Only 1 Woman Director since 1995 80
Slide 63: Board of Directors and service providers
• Board of Directors • Eide Bailly • Widmer Roel • Forum Printing • Fredrikson & Byron • Vogel Law Firm • Bell Bank • GGC Members 81
Slide 64: Mark Harless, Chairman
MARK HARLESS Chairman, Golden Growers Cooperative 82
Slide 65: Brian Jennings, American Coalition for Ethanol
BRIAN JENNINGS Executive Vice President American Coalition for Ethanol 83
Slide 66: Golden Growers Cooperative
Golden Growers Cooperative
Slide 67: 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 materially from these current
Slide 68: A Year Like No Other
A Year Like No Other with hope for better days ahead 86
Golden Growers Cooperative — Shareholder Meeting (2021) on 6ix