Strategy and goals

Value-creation is made through a dual-level strategic approach

 

Group level

At Group level we structure, develop and optimise the ownership of the portfolio businesses.

Schouw & Co. has a very long investment horizon, and we are open towards attractive acquisitions and consolidations. On a continuous basis, we assess if we are best owners and can make value-creating and appropriate divestments. However, it is not the goal of Schouw & Co. to carry out many transactions.

 

Business level

At business level we ensure a focused operation and continuous transformation of the businesses.

Schouw & Co. focuses on solid performance and growth in the portfolio companies, and that allocation of capital is effected. Together with the businesses we endeavour structural and strategic initiatives, including the options of expansion and bolt-on acquisitions.

Mission and vision

Our mission and vision as they have been for more than a decade:

Mission

We put together a portfolio of leading Danish industrial businesses, which we develop through value-creating, active and long-term ownership.

Vision

We strive to be among the best in creating value in a proper and trustworthy manner.

 

Strategy wheels

Our strategy wheels, that are the foundation for the value-creation in Schouw & Co, and our simple model stating what is important when performing active ownership:

 

Our mantra

The mantra of Schouw & Co. provides an insigt into what we require and expect form our portfolio businesses:

"Results are created by people"

Businesses owned by Schouw & Co. must

- ensure and maintain a leading position

- be developed subject to our active ownership model

- have a long-term growth strategy

- contribute to value-creating consolidations

- generate ROIC of more than 15%

- have visible values and a strong culture

- be prepared for progressive changes.

Strategic goals

Area

Goal

Growth

Substantial growth every year

Profit

Benchmark level profitability

Returns

ROIC > 15%, but depending on investment risk

Gearing

NIBD comfort zone is between 1 and 2 times EBITDA

Dividends

Constant/increasing dividends and share buybacks

Portfolio

A ’handful’ of large and strong companies

 

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