Side 4
DLG SETS THE DIRECTION FOR THE NEXT FIVE YEARS Niels Dengsø Jensen, Chairman of the Board It has been more than three years since DLG’s Board of Directors, Board of Representatives and the Executive Board decided to sell the companies and activities that weren’t profitable or that did not fit strategically into our core business. Today we stand on the other side of a successful divestment process. We have sold 12 companies. It is a process that has been hard but necessary. It has also shown that standing together through tough times pays off. It was the right decision that we can all be proud of. As a group, we are focused, and within our core business we have greater advantages than ever before. Our challenge for the years to come is to transform this into a clearly improved competitive strength that can be felt by every single farmer. COMPETITIVE STRENGTH FOR THE CUSTOMER There is a need for a large, strong and focused agribusiness in the farming sector. The structural developments we are seeing in agriculture right now are a result of al- most 10 years of crisis in the sector. We are on our way out of the crisis, but the changes are just beginning. In the years to come, there will be a rapid and more pro-
Side 5
found professionalization of the agricultural sector in the northern European markets of historical dimensions. High quality products and a high level of service will be a prerequisite that customers and owners will demand from DLG. We want advisory services and innovative products of the highest caliber. We want transparency in the hedging scheme of our products. And we will increasingly expect that DLG as a supplier will keep pace with the digitisation of the sector. As a cooperative, we must be able to meet all these requirements while ensuring that the price of our products and services is always right. A NEW STRATEGY LEADS THE WAY In the beginning of 2016, we initiated a process that has yielded our new strategy. It is called ”DLG Leading the Way 2021” and aims to set the direction for the DLG Group and lead the way in the agricultural industry. The strategy has been developed in close cooperation with the Representatives, who in December 2016 approved it unanimously. Along with the Group, the Board of Representatives has been involved in an extensive process to ensure that the needs and requirements for DLG was reflected in the finished strategy. We believe this has been achieved. We have defined four main principles: We have to be the market leader, have a customer focus, exhibit cost leader ship and organize our business in the smartest way possible – for the benefit of the customer. We must grow within our three core areas – Farm Supply, Premix & Nutrition and Service & Energy. ”DLG Leading the Way 2021” is a growth strategy. We need to increase market share in existing markets within our core business and expand into new local markets partly by strengthening our existing businesses and partnerships and partly through acquisitions. Through digitisation, among other things, we must reach our customers in new and more efficient ways. All of it will lead to greater returns for our owners and an increased competitiveness that every farmer can see on their own bottom line. TOWARDS THE FUTURE But most important is ”DLG Leading the Way 2021” is laying down a strategic and economic direction for the Group for the coming five years, and that the strategic playbook is written in collaboration with the Board of Directors and with full support from the owners. It reflects the fundamental unity we have at DLG. As owners, we stand united with the company that will give us benefits. We share the responsibility. That is a great strength. And that is what is required if you want to lead the way for the world’s most important industry. Niels Dengsø Jensen, Chairman of the Board DLG IN BRIEF • 5
