Return and ownership
INVESTMENTS

Return and ownership

At Chr. Augustinus Fabrikker we strive to be the ideal owner of successful Danish businesses. We gradually expand our activities by making new types of strategic and scale investments, thus ensuring that the risk is balanced and at the same time creating opportunities for generating returns. It is a precondition for our ownership that our fundamental requirements are fulfilled: sound and solid business models, strong management, and returns matching the investment risk.

The optimal ownership structure for any enterprise, is determined by the actual situation, at any time, and potential something that changes over time. We see ourselves as owners in more contexts. We act as direct owners of Danish businesses as well as owners of listed companies, and our ownership includes both controlling positions, minorities as well as other types of partnerships. When partnering with private equity funds and other owners, we are active as co-investors, pre-IPO investors and as anchor investors in IPOs. As the ideal ownership structure may change over time, we remain flexible in case the company is better served with a change in ownership.

The SDG goals (the 17 UN sustainable development goals) are a cornerstone of our approach to ESG. Through entrusted dialogue with our companies, we focus on specific SDG goals that are relevant to the individual company, with a focus on the environment and society.

Chr. Augustinus Fabrikker’s financial investments are managed by our own teams as well as by external partners. Our financial investment strategy covers a number of asset classes where we deploy an active Asset Allocation strategy.

PORTFOLIO (DKK 30.7 bn)
(31 Dec '19)

  • Financialinvestments
  • Scale-investments
  • Legacyinvestments
  • Strategicinvestments

5 LARGEST INVESTMENTS

COMPANY
OWNERSHIP
(%)
OWNED SINCE
(Year)
Jeudan A/S
41%
2004
Royal Unibrew A/S
>15%
2009
Scandinavian Tobacco Group A/S
25%
1961
Tivoli A/S
57%
2000
Ambu A/S
<5%
2010

KPI's

DKK (Mn.)
Accounting result
2,520
3,048
3,435
1.226
2.239
Booked equity
25,533
23,350
20,523
17.405
16.567
Booked balance
25,565
23,372
20,546
17.421
16.600
Market value
30,682
26,923
24,572
 

LEGACY-
INVESTMENTS

We have great veneration for classic Danish brands. The focus of our legacy investments is on both large and small businesses that play a key part in Denmark’s cultural heritage. We have ownership interests within furniture, design, knowhow, consumer goods, literature, music and culture.

Our philosophy is to invest in brands that will not depreciate in value and can yield attractive returns over time. It is essential for Chr. Augustinus Fabrikker that the business model is sound and that the company will benefit from remaining anchored in the Danish society through continued Danish ownership in a loyal and mutual partnership. Within our legacy investments, Chr. Augustinus Fabrikker is often an active owner and represented on the company boards.

 

STRATEGIC
INVESTMENTS

A cornerstone of Chr. Augustinus Fabrikker’s strategy is to have a significant ownership interest in a range of companies. Strategic investments form an important part of our overall business strategy.

We believe that a stable ownership base with a long-term focus provides the best environment for companies and their management to strive – and thus supporting a sound business with the opportunity to create the best returns. It is essential for us that we are comfortable with the business model, strategy and management. When this is fulfilled, we act as loyal owners who support long-term strategies. A natural part of our engagement is to ensure the company is managed in the best way possible and that the future value creation potential is intact.

Our active approach regarding optimal ownership can result in a situation where one of our companies is better suited with a different ownership. Furthermore, we will take into consideration our entire balance sheet when we consider our assets.

 

SCALE
INVESTMENTS

Chr. Augustinus Fabrikker is committed to support Danish business society and as part of this strategy, we believe that investing in new innovative companies is imperative to continue to see Danish businesses flourish. Through our investment in the next generation of companies we aim to support by creating jobs, develop intellectual property and technology as well as generate healthy value growth, originated in Denmark.

We believe that the Danish start-up ecosystem is well funded in the early years, with good representation from business angels and early stage/seed investors, but that a void exists when young companies require capital for scaling the business beyond proof of concept (typically after series A funding rounds). Chr. Augustinus Fabrikker is a dedicated local partner who looks to invest in successful Danish companies which have achieved proof of concept and are looking for funding to scale the business.

Our approach to long-term ownership in our scale investments is based on the same principles as in our strategic investments.

 

IMPACT
INVESTMENTS

Impact investments form a natural part of Chr. Augustinus Fabrikker’s strategy. We believe that our ambition to generate returns is compatible with actively investing in sustainable development. We have teamed up with professional asset managers with the experience and knowhow required within impact strategies.

Our current focus is broad and covers social impact, climate, investment in developing countries and energy. We have a dedicated strategy, as one of the few foundations in Denmark, with a share of our balance allocated to Impact. In recent years we have invested significantly in this area, and in the future the focus will be further increased, both financially and in terms of resource allocation.

 

FINANCIAL
INVESTMENTS

Chr. Augustinus Fabrikker allocates a significant portion of the balance to financial assets. We believe in active asset management, and in markets where our own teams have expertise we cover the investment selection ourselves. In other markets we have built close partnerships with professional and carefully selected asset managers.

Our financial investments span across various asset classes, and we take a dynamic approach to Asset Allocation.

We do not use proxy providers and do not make our equity portfolio available for borrowing.