The Midcounties Cooperative

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The Midcounties Co-operative Annual General
Meeting 19 May 2007
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Welcome Introduction
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How this session will work... Everyone has a
key pad Well be asking you some questions Each
question will give you a number of options for
your answer When youre told to vote, select a
response by pressing the corresponding number on
your keypad You can change your answer at any
time during the allotted voting time (10
seconds) The number of responses for each option
will be displayed on the screen We cant
identify you from your keypad!
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• Why have you come to todays AGM?

Please select the statement that most strongly
applies to you 1 My interest in the
Societys financial performance 2 My interest
in the Societys business activities 3 My
interest in ethical campaigns initiatives 4
To meet fellow members
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• Have you attended one of our AGMs before?
• 1 Yes
• 2 No

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Minutes
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Approval of Quarterly Meeting Minutes
1 For2 Against3 Abstain
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Approval of Special Meeting Minutes
1 For2 Against3 Abstain
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Annual Report

• Introduction

• The year in review

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Directors Report Financial Statements

• Ben Reid
• Chief Executive

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Some highlights

• Food Retail
• new stores in Long Hanborough and Cowley Road,
  refurbished stores in Didcot and Cowley
• Motors new Volvo and Hyundai franchises in
  Wolverhampton
• Travel 10 branches acquired
• Gloucester relocated and opened as Travel Ultra

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Some more highlights
Pharmacy 5 branches acquired in the
south Funeral major refurbishments in Banbury,
Oxford and Gloucester new funeral home in
Coleford investment in Highworth
Memorials Childcare 96 place nursery opened in
the John Radcliffe hospital, Oxford
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Revenue Account
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Revenue Account continued.
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Turnover
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Turnover
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Analysis of Turnover
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Operating Profit(excluding exceptional items)
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Operating Profit(before depreciation
exceptional items)
21.3
18.5
16.6
15.4
15.2
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Balance Sheet
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Balance Sheet continued
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Net Assets
163.7
146.2
80.4
75.0
73.2
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Net Debt
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Gross Capital Expenditure
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• 2006
• A year of major changes
• A year of significant progress
• A solid foundation for the future

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THANK YOU
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Annual Report

• Introduction
• The year in review
• Directors Report FinancialStatements

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Approval of Directors Report Financial
Statements
1 For2 Against3 Abstain
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Annual Report

• Introduction
• The year in review
• Directors Report Financial Statements
• Distributions

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Dividend Proposal
2004/05 - 0.5 pence per point
2005/06 - 0.3 pence per point
2006/07 - 0.3 pence per point (Interim)
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Dividend Proposal 1.0 pence per point
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Distributions

• 415k to member development activities
• 230k to member benefits
• 50k for the Co-operative Party grant
• 294k on community and co-operative
  development
• 989k in total

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Approval of Distributions
1 For2 Against3 Abstain
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Review of the Remuneration Report
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Directors Fees Proposed Changes
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Rule 63 The Society shall from time to time fix
the remuneration of the Directors
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October 2005 Director 6,000 Vice-President
7,250 President 8,250 Annual increase
change in NAE over last 12 months
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October 2006 Director 6,246 Vice-President
7,547 President 8,588
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• Proposals - 1
• - Remuneration Committee - 400 p.a.
• - Audit Committee - 400 p.a.
• ? Chair 20 and Vice-Chair 10
• - Director fee - 6,246 ? 6,250
• - Presidents fee director fee 40 8,750
• - Vice-President fee director fee 20
  7,250

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Proposals - 2 - Costs of care claimable as an
expense - Annual increase NACO rise each July
but not for 2007
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Overall ? Currently total cost 105k p.a.
? Under proposals total cost 110k p.a. ?
Virtually cost neutral because no fee increase
in 2007
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Questions?
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Approval of Directors Fees
1 For2 Against3 Abstain
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Special Meeting
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Proposed changes to the Rules of the Society

• To disband the Regional Board
• To limit compensation payable to directors on a
  merger
• To remove the requirement that all directors are
  to resign in 2009
• To enable on-line applications for membership

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(No Transcript)
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Approval to disband the Regional Board
1 For2 Against3 Abstain
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Proposed changes to the Rules of the Society

• To disband the Regional Board
• To limit compensation payable to directors on a
  merger

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Approval to limit compensation payable to
directors on a merger
1 For2 Against3 Abstain
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Proposed changes to the Rules of the Society

• To disband the Regional Board
• To limit compensation payable to directors on a
  merger
• To remove the requirement that all directors are
  to resign in 2009

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Approval to remove the requirement that all
directorsare to resign in 2009
1 For2 Against3 Abstain
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Proposed changes to the Rules of the Society

• To disband the Regional Board
• To limit compensation payable to directors on a
  merger
• To remove the requirement that all directors are
  to resign in 2009
• To enable on-line applications for membership

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Approval to enable on-line applications for
membership
1 For2 Against3 Abstain
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Lunch
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Our Difference
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• Defending the Environment
• Kevin Brown
• Group General Manager
• Support Services

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Content

• Electricity Gas Costs
• Energy Initiatives Update
• CO2 Emissions
• Future Initiatives
• Green Bond
• Your views on climate change

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Question

• The Midcounties estimated costs for electricity
• and gas in 2007/08 are 7m. What increase do
• you think this will represent against 2006/07?
• 1. 750k
• 2. 1m
• 3. 2m

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Additional Electricity Costs 2007
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Additional Gas Costs 2007
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Energy Initiatives Update

• Four Key Themes
• Price risk and management
• Service and processing efficiencies
• Generation and sustainable sources of energy
• Energy efficiency

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Energy Efficiency

• Build energy into investment, design,
• procurement and maintenance decisions.
• Embed within management supported with personal
  business objectives.
• Energy saving verifiable against the investment
  case.

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Energy Efficiency

• Target a saving of 20 reduction in like for like
  energy consumption by 2010.
• Continue to purchase from renewable sources
  whenever possible.
• Promote energy efficiency and awareness through
  our Energy Environmental Steering Group and
  Energy Champion Programme.

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Question

• Which of the following do you think will
• have the greatest impact on reducing the
• Societys CO2 emission levels?
• 1. Reduce energy consumption.
• 2. Only use green energy for power supplies.
• 3. Contribute to a carbon offset programme.

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CO2 Emissions

• Our initiatives to reduce CO2 levels.
• All locations are powered by 100 green energy.
• All Society vehicles, where possible, will be
  diesel.
• We will contribute to a carbon offset programme
  to neutralise emissions from our vehicle fleet.

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CO2 Emissions

• In the first quarter of 2006/07 financial
• year our CO2 Emissions levels were
• 61.75 tonnes of CO2 per 1m turnover
• At the end of the financial year our CO2
• emission levels had reduced to
• 18.96 tonnes of CO2 per 1m turnover.

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Future Initiatives

• Photovoltaic Cells
• Wind Turbines

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Environmental Initiative Funding

• We have allocated 100k p/a for the next 3 years
  to support our E E strategy.
• Buthow do we consider funding our wind turbine
  plans?

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Green Bond

• We will be launching a new Green Bond
• To give our members and stakeholders the
  opportunity to invest in our green plans.
• The green bond will be very similar to our
  existing share bonds, and will be issued on a 3
  year fixed rate basis, at a rate which will
  reflect the prevailing market at the time of
  issue.

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Question

• The risks to society from climate change are
• overstated?
• 1. Agree Strongly
• 2. Agree
• 3. Disagree
• 4. Disagree Strongly
• 5. Dont know / No Opinion

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Question

• There is doubt over whether climate change
• is really due to human behaviour?
• 1. Agree Strongly
• 2. Agree
• 3. Disagree
• 4. Disagree Strongly
• 5. Dont know / No Opinion

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Question

• Addressing climate change is a key
• business priority for The Midcounties?
• 1. Agree Strongly
• 2. Agree
• 3. Disagree
• 4. Disagree Strongly
• 5. Dont know / No Opinion

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Question

• Climate change represents a considerable
• risk to The Midcounties?
• 1. Agree Strongly
• 2. Agree
• 3. Disagree
• 4. Disagree Strongly
• 5. Dont know / No Opinion

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Question

• Climate change represents a considerable
• business opportunity for The Midcounties?
• 1. Agree Strongly
• 2. Agree
• 3. Disagree
• 4. Disagree Strongly
• 5. Dont know / No Opinion

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Question

• I feel a growing responsibility to change the
• way I live to reduce my impact on climate
• change?
• 1. Agree Strongly
• 2. Agree
• 3. Disagree
• 4. Disagree Strongly
• 5. Dont know / No Opinion

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Committed to the Community

• Malcolm Smyth
• Community Manager

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How we support our community. . .

• Financially through Co-operative Community
  Dividend
• Hands on through our Colleague Volunteering Scheme

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Financially

• 173,961 has been awarded in
• Co-operative Community Dividend
• Community Event Grants
• Community Cheques

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• 365 individual organisations have benefited from
  Co-operative Community Dividend Grants
• One a day. . .

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• Perry Riding Centre for the Disabled, Shropshire
• 1000 to provide additional lessons

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• Norton Canes Community Minibus, Staffordshire
• 870 to train volunteer drivers

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• Wyre Forest Swimming Club, Worcestershire
• 970 for the purchase of lane ropes

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• Gloucestershire Association for Mental Health
• 420 to purchase light therapy boxes

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• Forest Emerald Majorettes
• 500 to purchase a new bell lyre

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• Slow Food Oxon
• 1,000 to provide Oxfordshire students with
  demonstrations and advice on healthy eating

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• Swindon Food Bank
• 1,000 to purchase collection boxes and an
  industrial trolley

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Financial support from customers

• During 2006 a total of 67,000 was donated by
  customers to local charities through bag packs
  and instore collections

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Mobile phone recycling
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Charity of the year
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Hands on support

• Midcounties colleagues have given 3,213
  volunteer hours
• This has a financial equivalent of 46,556

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Some hands on information

• During 2007 11,000 volunteer hours have been
  pledged by Midcounties colleagues

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• Volunteers from Cowley Retail decorated a
  childrens centre at Blackbird Lees

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• Retail colleagues revamped the playground at
  Graisley Primary School, Wolverhampton

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• Pharmacist Davinder Singh delivered health advice
  at the Guru Nanak Sikh Temple in Willenhall

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The Ferret Run
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• Travel colleagues continue to provide reading
  support to primary school children at Berrybrook
  School

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• Healthy Hound the volunteer project developed
  and delivered by Pharmacy colleagues continues to
  grow
• The project encourages healthy lifestyles for
  children

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Benefit to the Business

• 19 of our entire published PR in 2006 was
  connected to our community work
• This represents in excess of 100,000 in media
  cover leverage

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We will continue in helping to make our community
a better, fairer place.
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Ethical Trading

• A flavour of things to come
• Andy Cresswell
• Group General Manager Retail

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What is Ethical trading

• Quote from Chairman of the NRI
• Ethical trade is trade that attempts to be
  socially and environmentally responsible. It is
  trade in which companies take responsibility for
  the impact of their business

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So Why Trade Ethically?

• Because our members and customers want to have
  the choice?
• Because we care?
• Because it gives us a business opportunity?
• Because we are a Co-operative and we are
  different?

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Do you know?

• In what year did the Co-op become the first
  major retailer to sell Fairtrade Café direct
  coffee?
• 1. 1987
• 2. 1991
• 3. 1994
• 4. 1996

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Ethical more than just Fairtrade!

• Energy efficient light bulbs
• Energy efficient electrical appliances
• Environmental cleaning products
• Sustainable timber products
• Non-animal tested health beauty products

• Fairtrade products
• Local harvest
• Organic
• Free range
• Sustainable fish
• Dolphin safe tuna
• Recycled products

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. . .and even more!

• Vegetarian products meat alternatives
• Freedom foods products
• Heath services (e.g. prescription reviews)
• Smoking cessation products
• Emission testing for vehicles

• Support on drug dependency issues
• Carbon offset holidays travel
• Responsible tour operators
• Green coffins
• Green funerals
• Alternative fuel cars
• Low fuel consumption cars

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We were the first!

• The year 2000 saw the Co-op become the first
  retailer to launch its own label Fairtrade
  product. What was it?
•  
• 1. Co-op Roast and Ground Coffee
• 2. Fairtrade Bananas
• 3. Co-op Divine Milk Chocolate
• 4. Co-op Fairtrade Chilean Carmenere

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Communication

• We are committed to telling our customers both
  locally and nationally.

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So far this year
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Fairtrade Fortnight(26th February 11th March)
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Midcounties Support For Fairtrade Fortnight

• Support across the Society including
• Staff awareness training in selected food
  stores
• Product sampling
• Launch of cotton fairtrade bag
• 20 off the complete range for 4 weeks
• Canteen tasting event at head offices

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• All drinks offered in Travel Branches were
  Fairtrade
• Fairtrade posters were displayed in offices and
  branches

• Product sampling / display across all showrooms
• Fairtrade competition
• Gift to customers (fairtrade wine or chocolate)
  in branded Recycled Box.

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National adverts
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National adverts
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Our customers want local

• How much local harvest have our customers
  purchased in the last year?
• 1. 250,000
• 2. 750,000
• 3. 1.2 million
• 4. 1.8 million

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WE make a difference all over the world!

• To date only one Fairtrade product has been
  supplied to Co-op from Pakistan.
• 1. Pineapples
• 2. Oranges (for juice only)
• 3. Xmas Crackers
• 4. Footballs

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So - Why Trade Ethically?

• Because our customers want to have the choice?
• Because we care?
• Because it gives us a business opportunity?
• Because we are a Co-operative and we are
  different?
• ALL OF THE ABOVE AND A LOT MORE.

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Our mission statement

• We really can
• create a better, fairer world

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Your Active Member Support Group
Janet Warren Mike Corker With Martin Rudland,
Maureen Dempsey, Sheila Cuss, Joan Tranter, John
Norton, Sheila Harris, Stephen Yeo, Tim
Lovegrove, Matthew Bayliss, Bimal Prodhan, Steve
Allsopp and Sheila Allen
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What The Group Do!

• Elected
• Listen
• Represent

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Active Members Survey 2006

• Lobbying government and professionals would we
  like training?
• Campaigning
• - should we align with national events?
• Values and Principles?
• - what are they?
• - how do they apply in 2007/8/9?

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Question 1

• How would you like to explore our Values and
  Principles?

• At events
• In store messages
• Internet interaction
• All of the above

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What are your thoughts?

• Campaigning what next?
• New challenges more to learn?
• Help spread the message what I need is!

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What do you want of your Society?

• Be the change you want to see in the world

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The Members Conference 2006
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Membership Engagement
Mike Pickering Membership Development Coordinator
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As a member, you part own the SocietyPlay your
part in shaping the future of membership
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What you can do!

• The Membership Journey!
• Training, Discussion and Action
• Campaign with us

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Recruit more members

• Recruit members
• To join
• To trade with us
• To take an interest
• To share their views
• To campaign with us
• To learn with us
• To play an active role

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Question 1

• When would you prefer to attend a membership
  event?

• Weekday day time
• Weekday evening
• Weekend day time
• Weekend evening

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Member Communication

• The Difference
• Website
• Member Groups
• Newsletter
• Surveys
• Leaflets
• Posters

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Question 2

• We are currently updating our membership website.
  What would be the one thing you would use the web
  for?

• To view Trading Group Updates
• To participate in Member Forums
• To view Campaign updates
• To find out how I can get involved in future
  campaigns

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Question 3

• What does campaigning mean to you?

• The Co-op takes an action on my behalf
• I complete surveys
• I can influence policies
• I can learn more about the issues and get
  involved to make a change

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Programmes
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Jonathan Gulliford Operations Director
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Why enter the legal services market?
Source Steuart Francis, The Times
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The Co-operative Legal Services
Co-operative Legal Services will be an innovative
and expanding provider of consumer legal
services delivering benefits to Co-operative
members, customers and the general public
through commitment to integrity, value, staff
welfare and social responsibility Vision To be
the best provider of consumer legal services in
the United Kingdom
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Customer research

• Legal Services are a distress purchase
• There is a general distrust of legal service
  providers
• Other professions have moved with the times.
  There is an expectation that legal service
  providers should do the same
• Consumers want to use a trusted, professional
  brand
• Changes in Legal Services Market
• Legal Services Reform Bill
• First Mover Opportunity

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Customer research

• Consumers want their legal provider to display
  certain values

Professional
Sensitivity
The ideal legal provider
Integrity
Established
Trustworthy
Communicative
Customers are now used to being treated well and
being made to feel important. They become
dissatisfied when they are not treated properly
Expectations are high!
At the end of the day I am the one who is paying
his wages I expect to be treated accordingly.
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Product offering
legal helpline
will writing
personal injury assistance
probate
legal expenses insurance
consumer
employment
conveyancing
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For help or advice, call us on 0845 6038460.
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(No Transcript)
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Questions Views from Members
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Any Other Business Summary
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Thank you for attending
Thank you
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announcement
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