Svend erik sorensen en
-
Upload
informaeuropa -
Category
Documents
-
view
111 -
download
2
description
Transcript of Svend erik sorensen en
![Page 1: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/1.jpg)
Coop Summit Quebec 2012
Round table on future COOP financing
Svend Erik Sørensen, Danish Crown
![Page 2: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/2.jpg)
Danish Crown is a primary cooperative
• Each single farmer has direct membership
• Supply directly from the single farm to the coop under full price transparency
• Elected management in two levels only
• A commercial supply chain – not a political body
• All non-retained earnings are paid back to the members at year-end
• A robust business model with a high implicit credit rating
![Page 3: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/3.jpg)
Our development is based on the coop model
• Our lean and direct coop model has served us for 125 years and put us on the global scene
• Investments beyond the home base requires more equity
• Sooner or later we will reach the limit of what equity can be sourced from members
• The GFC has increased the need for equity
• COOPs with an international growth strategy should start looking for other equity sources
![Page 4: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/4.jpg)
Limitations in attracting more coop equity from members
• European farmers under financial pressure with limited debt capacity
• Many would prefer to invest in developing their own farming enterprise
• Concentration among farmers increases the challenge
• Collective investment decisions become difficult ~ individual investments may not be coop compatible
• A potential barrier for attracting new members
![Page 5: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/5.jpg)
Value creation and control – option 1
Value creation by growth and development
Time
Maximum growth under full
COOP regime
Full coop control given up but growth
continued
![Page 6: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/6.jpg)
Value creation and control – option 2
Value creation by growth and development
Time
Maximum growth under full
COOP regime
Control maintained but growth and
value lost
![Page 7: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/7.jpg)
Danish CrownCOOP
Danish Crown COOP
Danish Crown Ltd.
BEFORE AFTER
We have prepared our group structure for new investors
New shareholders
can be added
![Page 8: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/8.jpg)
... and thereby increased our financial flexibility
Member equity
Financialinvestors
Internat.mergers
Listing / IPO
Transfer to Ltd.structure
Here we are
![Page 9: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/9.jpg)
To be in place if and when the equity base is expanded:
• The company must be a good investment ! – earnings, technology, market position, growth
potential
• Governance model satisfying all stakeholders
• Transparent and market based trading and reporting
• The right time window
![Page 10: Svend erik sorensen en](https://reader036.fdocuments.us/reader036/viewer/2022082502/54c608414a7959e26e8b45e6/html5/thumbnails/10.jpg)
• We should open the door for new partners
• We need to make it attractive for new partners to enter through the door
• We need to ensure a fair ticket price