Capricorn Co-operative A co-operative model and the context of Australian trade October 2015.

Capricorn Co-operative

• A co-operative model and the context of Australian trade

• October 2015

Capricorn GroupCapricorn’s purpose is to help members build value, efficiency and sustainability in their business and community.

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Capricorn Group

Automotive

Capricorn Finance

Capricorn Travel

Risk and Protection

Financial Services¹

Other Investments

¹Strategy currently under development

What is Capricorn?

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Capricorn is a Co-operative that links small businesses with bigger businesses for their mutual

benefit

Our members are like-minded business owners (automotive repairers) who are looking to maximise

their collective efforts in gaining access to parts and services to support their businesses

Capricorn provides the contacts and infrastructure to enable this to happen

What is Capricorn?Capricorn is a Co-operative that links small businesses with bigger businesses for their mutual benefit

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Capricorn has been operating in Australia for 40 years

and is Australia’s largest Automotive Parts buying

group

Each of our members are shareholders and Capricorn is

Australia’s 4th largest Cooperative

Capricorn has the combined buying power of over

16,400 Member businesses in the Automotive

Industry being supported by around 2,000 suppliers

With annual turnover in excess of $1.41 billion

Who are our membersSmall to Medium Enterprises that operate in the Automotive Service and Repair Market

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Automotive workshop categories• Agricultural• Auto Electrical• Commercial Truck• Convenience Store (Fuel Only)• Engine Re-conditioner• Engineering/Industrial• Marine• Mechanical Workshop• Panel & Paint (Smash Repairers)• Retail Store (Reseller)• Service Station & workshop• Transmission• Tyre & Suspension

Our members run automotive workshops that cover all spectrums of the automotive service and repair marketThe average profile of a Capricorn member workshop is: • Small to medium business• 3 mechanics• 4 bays• Operating 5 and a half days a

weekMembers embrace Capricorn because we make it easier for them to do business

How it works for membersCapricorn facilitates e-trade activities on for members

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• Each member business is given a personal account number

• The member orders parts directly with the supplier, as they do now

– The goods still get delivered as usual– They receive a priced invoice on delivery– Credits are treated the same way as they are

now• The member receives one itemised

statement for all purchases made during the month on approximately the 10th working day of the next month

• They reconcile one account and pay Capricorn on or before the last working day of that month (30 day trading account)

• Capricorn pay the suppliers on their behalf

What it means to be a memberCapricorn’s key goal is to make trading easier

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• One account with over 5,500

supplier locations

• Access to the Capricorn Purple

Pages (Supplier Directory)

• Access to Capricorn Risk Services

(Capricorn Mutual & Capricorn IS)

• Access to Capricorn Finance

• No minimum or maximum monthly

purchases

• No cost to them - they only pay for

goods as invoiced

• Leveraging strength in numbers

(No member should pay more)

• One payment for all purchases

regardless of number of suppliers

• Easy payment options: ANZ deposit

book/direct credit, direct debit, B-

Pay & POSTbillpay

What's in it for the memberEase of trade and exclusive member benefits

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Members own shares in Capricorn and

have the opportunity to receive

dividends on the shares that they own

Member benefits include a 1.5% return

for their purchases on their Capricorn

account paid as reward points – for every

dollar that they spend with a preferred

supplier they receive 1.5 reward points

Reward Points can be redeemed by:

• Investing in more Capricorn shares

• Payment towards their Capricorn

account

• Travel through Capricorn Travel

• Gift vouchers for Myer, Harvey Norman,

Liquorland/Vintage Cellars, Kmart,

Coles, Target, Woolworths or Bunnings

How it works for SuppliersCapricorn offers sales and administration benefits to our suppliers along with sole access to Members

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• Guaranteed 30 Day payment

• No need for credit checking

• No bad debts, no “bounced cheques”

• Administration cost slashed (banking, postage, chasing cheques)

• Target marketing access to thousands of automotive businesses

• Marketing access to flyers with statements

• Inclusion in Capricorn Events

• Capricorn Reward Points gives suppliers a sales advantage

• Preferred Supplier listing in Purple Pages

• Member Penetration Reports tracking suppliers sales to our members

• Access to our Field team

Australian Co-operatives

• Australian industrial landscape• Export & Import

Co-operatives and Mutuals (CMEs) in AustraliaAustralia has a diverse co-operative landscape with a high level of participation per head of capita

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The first Australian consumer co-operative was registered in 1859

Mutual insurers and

friendly societies provide

insurance to more than 2.3

million Australians

More than 13.5 million

memberships generating a turnover of over $25 billion per annum

Customer owned banks, credit unions and building

societies have 4.5 million members

Motoring organisations are owned by more than 7

million members

More than 15% of ALL Australian

Agriculture is managed by

CME’s

CMEs including member-owned

superfunds contribute

around 7% of our country’s

earnings

Co-operatives and Mutuals in AustraliaAustralia has a diverse co-operative landscape with a third of the Top 100 Co-operatives turnover being sourced from Agriculture and Fishing – key Australian export markets

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Source: National Mutual Economy Report, 2014

Co-operatives and Mutuals in AustraliaAustralia has a diverse co-operative landscape with a high level of participation per head of capita

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The above represent a selection of Australian Co-operatives participating in some of Australia’s key Export and Import markets

Business Council of Co-operatives and Mutuals

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• The BCCM was formed in 2013 following the United Nations International Year of Co-operatives 2012.

• The BCCM is the national peak body representing the co-operative and mutual models of enterprise in Australia.

• We represent various sectors in the economy including agriculture, insurance, banking and finance, personal services, shared services, wholesale and purchasing, retail and housing.

• Our members include some of Australia’s largest companies including the CBH Group, Capricorn, The Co-op, NRMA and HCF along with smaller organisations across the country.

Business Council of Co-operatives and Mutuals

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The BCCM is committed to:

• Providing leadership in research, education and advocacy

• Encouraging CMEs across all sectors to share best practice to foster partnerships

• Promoting the role of CMEs in the national economy

• Increasing the number of CMEs in the economy

Business Council of Co-operatives and Mutuals

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Some milestones reached:

• Federal Senate inquiry: A federal inquiry has been established to examine the role, importance, and overall performance of co-operative, mutual and member-owned firms in the Australian economy. Report due in February from committee.

• Government reviews: Co-operatives and mutuals have been lauded in federal government reviews over the past year including a competition policy review, a review into Australia’s welfare system and a White Paper on Agricultural Competitiveness

• Funding: The Federal government have committed $14 million in funding in agriculture for a two-year pilot programme to provide farmers with knowledge and materials on cooperatives, collective bargaining and innovative business models

Co-operatives and Mutuals in AustraliaA brief selection of active co-operatives in some of Australia’s agricultural export markets and industry statistics

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Meat & Fish contributed $8.7bn towards Australian exports

Fruits contributed $500m towards Australian exports

Dairy contributed $2.72bn towards Australian exports

Source: Australian Food Statistic Report, 2012-2013

Wheat contributed $6.75bn towards Australian exports

Cotton contributed $2.57bn towards Australian exports

Co-operatives and Mutuals in Australia

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Capricorn and the Business Council of Co-operatives and Mutuals Australia

welcomes the opportunity to start a co-operative conversation on trade

opportunities.

Please contact either

Melina Morrison

CEO

Business Council of Co-operatives and Mutuals

E: [email protected]

Greg Wall

Group CEO

Capricorn Society Ltd

E: [email protected]

Thank you

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