peterism Posted January 13, 2017 Share Posted January 13, 2017 There is nice article also in Finans: http://finans.dk/finans/karriere/ECE9265742/dansk-konglomerat-slaar-amerikansk-investorkonge-min-vigtigste-opgave-er-at-lade-vaere-med-at-ryste-paa-haanden/?ctxref=ext Link to comment Share on other sites More sharing options...
John Hjorth Posted January 13, 2017 Author Share Posted January 13, 2017 Thanks for sharing, peterism! Link to comment Share on other sites More sharing options...
DooDiligence Posted January 13, 2017 Share Posted January 13, 2017 SCHO is on its way up from below the radar, as already mentioned by me : Jyllandsposten 12th January 2017: Success conglomerate behind fish food and baby diapers hunting yet another business leg. [unfortunately subscription protected]. Congrats! I'm probably going to kick myself for not buying here... Link to comment Share on other sites More sharing options...
John Hjorth Posted January 13, 2017 Author Share Posted January 13, 2017 Thanks, DooDiligence!, But really no need to congratulate me on this. I haven't finished buying yet on this thing. Talk to me about thumb sucking. [at about 3% now, will go to at least 6% based on what I know right now - perhaps less than 6% or up to 10% when finished working and analyzing on this damn thing]. I haven't yet decided on position sizing, because of BioMar's part of the conglomerate. More work has to de done for my part, to get to some kind of conviction. I simply need to do more work on understanding the competitors of BioMar [EWOS and Skretting] to understand the competitive dynamics in the value chain. If we on this board had a poll on the most valuable posts for a given year, for me, the palms for such a poll would go to you, DooDiligence. I was actually stuck with regards to the BioMar competitors, when you helped me out in this topic. Furthermore, your post about and including the link to the "Global Protein Challenge" Report also meant a lot to me, for assessment of the long term view on this investment. Thanks a lot for that, DooDiligence. [For me personally, it's about allocation of attention and time right now. [i haven't had the time to dive in deep to the competitors of BioMar so far [because of the dynamics of life [and the natural prolongation of life, with regard to my MIL]]. In short: I'm basically unable to think straight right now, because of crap going on around me right now. - Paintings, carpets etc. - all of absolutely no interest to me, but it has to be processed.] - - - o 0 o - - - Next post from me in this topic, if no replies otherwise, will be about the second largest shareholder of SCHO [a Danish foundation], and the history about it - it's really funny stuff! Link to comment Share on other sites More sharing options...
John Hjorth Posted February 28, 2017 Author Share Posted February 28, 2017 Small bolt on aquisition to the sub GPV. Link to comment Share on other sites More sharing options...
DooDiligence Posted March 1, 2017 Share Posted March 1, 2017 Small bolt on aquisition to the sub GPV. Nice! Link to comment Share on other sites More sharing options...
John Hjorth Posted March 10, 2017 Author Share Posted March 10, 2017 2016 Annual Report. 2016 Annual Report Investor Presentation. All looks good to me. Still growing nicely, and also expected to grow further, ex. aquisitions going forward. Still around B 1.7 B available for aqusitions going forward. Link to comment Share on other sites More sharing options...
John Hjorth Posted March 20, 2017 Author Share Posted March 20, 2017 Large aquisition at Schouw & Co. today: Schouw & Co. aquires Borg Automotive A/S, a Danish industrial remanufacturer of components to the automotive industry. Article about the transaction at Boersen.dk today. Finans.dk : Family in Central Jutland sells life's work in billion deal. This will really move the needle for Schouws earnings and cash flow going forward. There are more than hints in the articles that the selling family has turned down PE offers earlier, and a reasonable price combined with considerations about the future of company did the trick here. It will be interesting in August this year to study the final structure of the deal in the H1 2017 financials for Schouw. It appears that Borg Automotive A/S is actually growing a lot at the moment - profitable growth, that is. Latest financials for Borg Automotive A/S [in English] attached. - - - o 0 o - - - Schouw & Co still has capacity to do one more deal of similar size. - - - o 0 o - - - Edit: Some elaboration and background information on the Schouw News Page.offentliggorelse_Borg_Automotive_AS_2015-16.pdf Link to comment Share on other sites More sharing options...
DooDiligence Posted March 21, 2017 Share Posted March 21, 2017 Large aquisition at Schouw & Co. today: Schouw & Co. aquires Borg Automotive A/S, a Danish industrial remanufacturer of components to the automotive industry. Article about the transaction at Boersen.dk today. Finans.dk : Family in Central Jutland sells life's work in billion deal. This will really move the needle for Schouws earnings and cash flow going forward. There are more than hints in the articles that the selling family has turned down PE offers earlier, and a reasonable price combined with considerations about the future of company did the trick here. It will be interesting in August this year to study the final structure of the deal in the H1 2017 financials for Schouw. It appears that Borg Automotive A/S is actually growing a lot at the moment - profitable growth, that is. Latest financials for Borg Automotive A/S [in English] attached. - - - o 0 o - - - Schouw & Co still has capacity to do one more deal of similar size. - - - o 0 o - - - Edit: Some elaboration and background information on the Schouw News Page. I haven't looked at the financials for Borg but the basic business looks appealing. Waste not want not! Link to comment Share on other sites More sharing options...
John Hjorth Posted March 21, 2017 Author Share Posted March 21, 2017 I have problems understanding the business model of Borg Automotive A/S. There is about DKK 1/4 B in provisions in the balance sheet for Borg, that I do not - now - understand. What is this about? Is this about taking in broken/worn out parts, ready for refabrication, but not paid for, untill refabricated and sold? I would like SCHO to take on some float by this aqusition, if that's the case here. The accounting principles of Borg does not seem accessible here. Link to comment Share on other sites More sharing options...
Spekulatius Posted March 22, 2017 Share Posted March 22, 2017 The provisions seem to be offsetting deposits from customers for remanufacutured parts. I don't understand the business really well and who has ownership of the remanufactured parts while work is in progress, but I assume the provisions are tied to the business model and can't be regarded as float, or if it is, it is akin to a very short dated float. Borg does look like a very good business, and probably a good acquisition. Link to comment Share on other sites More sharing options...
John Hjorth Posted March 22, 2017 Author Share Posted March 22, 2017 Thanks, Spekulatius, Your line of thinking about this is very similar to mine. It will be interesting to study this more in depth in August this year in connection with SCHO's H1 2017 reporting, also ref. the comments in the aquisition announcement from SCHO about change in accounting policies for Borg and the mentioned purchase accounting adjustments. Maybe we'll see the value of some customer relationships pop up in the group balance sheet for SCHO, like when BRK aquired PCC. Link to comment Share on other sites More sharing options...
DooDiligence Posted March 22, 2017 Share Posted March 22, 2017 I forget how Schouw handles individual biz management. Do they run a de-centralized system or do they become active managers after an acquisition? My preference is still for their fisheries biz... Link to comment Share on other sites More sharing options...
John Hjorth Posted March 22, 2017 Author Share Posted March 22, 2017 It's active management, DooDiligence - like Investor AB, L E Lundbergföretagen AB and Industrivärden AB among others. Personally I have got a perception, that the SCHO management style is really hands on, with close follow up towards CEOs at subs. I was stunned the first time I heard Mr. Jens Bjerg Sørensen actually cursing under a conference call related to a quarterly reporting. Imagine how he then approaches a CEO at a sub, if unsatisfactory numbers or unsatisfactory status reports on projects are clicking in at HQ? ... He is the man who got BioMar to grow big time as BioMar CEO - he is not SCHO CEO now by coincidence. I bet he is very demanding. And he has a lot of skin in the game. Link to comment Share on other sites More sharing options...
John Hjorth Posted March 23, 2017 Author Share Posted March 23, 2017 ... My preference is still for their fisheries biz... It appears SCHO is listening to you, DooDiligence! : BioMar to build production plant in Australia [23.03.2017]. The SCHO investment program is almost breath taking now. A lot is happening now. Link to comment Share on other sites More sharing options...
John Hjorth Posted April 4, 2017 Author Share Posted April 4, 2017 SCHO.CPH : Aquisition of Borg Automotive finalised. Link to comment Share on other sites More sharing options...
John Hjorth Posted May 4, 2017 Author Share Posted May 4, 2017 SCHO.CPH 2017Q1 is out. Now expected net turnover for 2017 after 2017Q1 is DKK 16.4 B [FY 2016 DKK 14.4 B]. EBIT range for 2017 after 2017Q1 is now DKK 975 M - DKK 1,135 M [FY 2015 EBIT [ex. gain on sale of Kramp] was DKK 1,038 M]. ROE for 2017Q1 is 18.3 per cent, while ROE for FY 2016 is 18.6 per cent. Expected contributions to EBIT from the relatively new subsidiaries GPV and Borg are expected to be in the range DKK 110 M - DKK 170 M, where for 2016 GPV contributed with DKK 44 M for 9 months. - - - o 0 o - - - A couple of days ago I read some meeting notes on here from one of my positions AGM with the text: "If [assumption] X and [assumption] Y, that will get us to a 15% ROE." When someone asks Mr. Jens Bjerg Sørensen about what can be expected from Shouw & Co. going forward, the answer is: "More of the same." I will certainly buy more of this. - - - o 0 o - - - Disclosure: At about 5.1 per cent right now. Link to comment Share on other sites More sharing options...
John Hjorth Posted May 12, 2017 Author Share Posted May 12, 2017 Attached are the BioMar Group 2016 financials [unfortunately only in Danish]. I read them to get a better and more detailed understanding of what is going with this sub, because it is a material part of the whole Schouw & Co. A/S. Here some highlights: The total sales in tons declined a bit, because the companys customers demand was lowered during the year in two regions: Chile - because of alge blooms - and Norway - because of problems in production with salmon lice. Despite that : Net profit after tax 2016: DKK 433 M. Equity year end 2016 : DKK 2,343 M. ROE : 19.4 per cent. From the cash flow statement: Cash flow from operating activities : DKK 884 M [<-!]. Investments in the future: DKK 346 M [tangible assets additions and joint venture investments]. Repayments of bank loans: DKK 300 M - to zero long term bank debt. Repayments of intercompany debt to Schouw & Co. A/S : 124 M. Dividends to the parent Schouw & Co. A/S : DKK 200 M. Cash at hand year end 2016: DKK 330 M. - - - o 0 o - - - So this sub is investing a lot it self in own growth, and the same time able to pay down debt to the banks and parent company while also able to pay a large dividend to its parent company. In short: A wonderful sub - in its very own league. I wonder how far Schouw & Co. A/S can take it. If the sub can actually maintain this clip just for a few years, HQ will be flooded with cash in steady streams - perhaps as much as a couple billion DKK within 4 or 5 years.offentliggorelse_BioMar_Group_AS_2016.pdf Link to comment Share on other sites More sharing options...
John Hjorth Posted May 22, 2017 Author Share Posted May 22, 2017 I've got an e-mail from the Schouw & Co mailing list Friday 19th May 2017 with an invitation to Schouw & Co. Capital Market Day in Copenhagen [it's not on the SCHO.CPH website - I written to SCHO.CPH IR about that] : "Invitation to Schouw & Co.'s Capital Market Day 15th June 2017 Schouw & Co. hereby has the pleasure to invite analysts, press and investors to Capital Market Day Thursday 15th June 2017 09:00 - 12:30. The event will take place at Langelinie Pavillionen, Langelinie 10, 2100 Copenhagen Ø. Parking is free. The focus will be on the strategic initiatives and strategic work currently in progress in Schouw & Co., as well as in two of the portfolio companies, namely BioMar and GPV. Agenda: 08:30 Registration and breakfast buffet 09:00 Presentations Further development of the strategic mindset in Schouw & Co., as well as general status and update on current developments in portfolio companies. Jens Bjerg Sørensen, Schouw & Co. CEO Highlights from the latest strategy process in BioMar, market insights and an update on selected strategic projects Carlos Diaz, BioMar CEO Presentation of the ambitious growth strategy in GPV since Schouw & Co.'s acquisition of the company in 2016, including an update of the establishment in Mexico, the new acquisition of BHE and the long-term prospect of GPV Bo Lybæk, GPV CEO 12:00 Breakfast 12:30 Thank you for today <more practical information here> ..." - - - o 0 o - - - Link to comment Share on other sites More sharing options...
John Hjorth Posted June 2, 2017 Author Share Posted June 2, 2017 It appears that they have been extremely busy lately at Schouw & Co. with M&A activity: A new large aquisition - again: Schouw & Co. subsidiary BioMar Group A/S acquires 70% of Ecuadorian shrimp feed manufacturer Alimentsa for about DKK 800 million. More details on the BioMar website here. Link to comment Share on other sites More sharing options...
John Hjorth Posted June 13, 2017 Author Share Posted June 13, 2017 Since my last post in this topic, I have had my reservations with regard to BioMar's Alimentsa aquisition. Based on the the aquisition price of DKK 800 M for 70 per cent of a company running at a turnover clip of DKK 500 M the price seemed to me to be a bit steep. I have found this: Business.dk : Schouw buys 70 per cent of shrimp food producer for DKK 800 Million. Business.dk : Schouw shall have a significant market position in the market for shrimp food going forward. The second article contains information about Alimentsa running at a clip with regard result of operations - I understand that as EBIT - at about DKK 100 M at the moment. So Schouw & Co. - via BioMar - has agreed to pay DKK 800 M for a share of 70 per cent of a yearly EBIT of DKK 100 M, which is growing. That has calmed me down quite a bit. I expect to be adding to this postion in the near future, if it does not run up too much - right now, I don't know when and how much. Time will tell, how much this aquisition adds to BioMar - and thereby Schouw - group intangibles. - - - o 0 o - - - It appears that Mr. Jens Bjerg Sørensen has got a haircut just before the photo taken, placed on top at the last article. I really hope he has not here been giving me one. [not needed to add here, but anyway: my mane is not worth writing home about already : - ) ]. - - - o 0 o - - - - Ealier in this topic, I have mentioned, that I considered SCHO.CPH to have an aquisition capacity of about DKK 2 B just after the sale of the 20 per cent ownership of Kramp. I consider that capital basically allocated now, with the aquisitions of Borg and Alimentsa. -Now it's just time to get the whole holly go molly piano to play the right way and earn some money and generate some cash - for the next aquisition! Link to comment Share on other sites More sharing options...
peterism Posted June 14, 2017 Share Posted June 14, 2017 Hi, Just wanted to say that you are not alone as investor in Schouw :) Thanks for sharing your thoughts. Unfortunately I can't participate in today's Capital Markets Day and I would very happy to read your thoughts about presentations. Link to comment Share on other sites More sharing options...
John Hjorth Posted June 16, 2017 Author Share Posted June 16, 2017 Thank you for your kind words, peterism, I have today done a quick scan of the Capital Market Market Day presentation, that got up on the Schouw website yesterday [it was up early in the morning, before the event started yesterday, actually]. It's almost overwhelming - 90+ pages, with lots of new details about the subs, that [at least to my knowledge] has not been disclosed by Schouw before. It will certainly take some time to digest and understand. I will post my comments in this topic. - - - o 0 o - - - Do you mind sharing your nationality, peterism? - From your last post I've got the impression, that you perhaps are Danish, or Swedish, living near by Copenhagen in the Southern part of Sweden. Link to comment Share on other sites More sharing options...
John Hjorth Posted June 19, 2017 Author Share Posted June 19, 2017 The Nordnet Blog: The long haul [19.06.2017]. Nordnet Bank Podcast: "Money with Per" - Part 19: Interview with Schouw & Co. CEO Jens Bjerg Sørensen [unfortunately only in Danish language]. Link to comment Share on other sites More sharing options...
John Hjorth Posted June 22, 2017 Author Share Posted June 22, 2017 ... Thanks for sharing your thoughts. ... ... Unfortunately I can't participate in today's Capital Markets Day and I wouldvery happy to read your thoughts about presentations. ... Peterism, Honestly, I was holding back with my post about the Capital Market Day Presentation material on the day of disclosure. What is this "talk" about 20 B DKK turnover in 2020? What is this "talk" about a 1.X EBIT in 2020? [1.X EBIT .... <-What is that! - It's running now at about 1.1 B EBIT for 2017... - Is it 1.7, 1.6, 1.8, 1.5, or perhaps 1.9 B DKK? - Actually, just putting this on some PowerPoint presentation is to me hilarious! - and most of all not professional!] - - - o 0 o - - - This was the first Capital Market Day ever for Schouw & Co. - after getting above the radar - To me, they certainly have a thing - or few - to learn about this, going forward. I hope there will be more such in the future. - - - o 0 o - - - With regard to expected 2020 turnover, I actually mean: What if Cargill steps in with an offer - before end of 2019, that Schouw & Co. can't resist? [something like: Buy our fish food business, or we'll be buying yours [bioMar]]. The turnover going forward in 2020 could be 30 B DKK , or 10 B DKK. - - - - o 0 o - - - So, why not stick with : "More of the same" [going forward]?[as I have posted before in this topic]. - - - o 0 o - - - So, in sincere honesty, I've been quite annoyed, because I've had a feeling of Mr. Jens Bjerg Sørensen talking the stock up on the Capital Market Day. - - - o 0 o - - - On another note: Because if the existense of the Internet for many years, we have the opportunity to go back and look at what happened in that period. I have actually done so with regard to SCHO.CPH. Crazy stuff to read, actually. What did happen then?: Well, a then sub called Martin Group ended up in dire straits. Turnover '09 compared to '08 was down 38 percent - a large operating loss for '09 as a result. What did Mr. Jens Bjerg Sørensen then do? He asked all subs to robe the sails of the operations of the subs [focus on reduction on working capital], and to send the cash to HQ, to save Martin, because it would fail otherwise. He saved it, and later sold it. - - - o 0 o - - - Alongside with all this mess, Mr. Jens Bjerg Sørensen managed to keep the banks in check, in a streched arm, at the same time buying back stocks in the market, way below book value at that time. - - - o 0 o - - - Honestly, this CEO really puzzles me. He is in his very own league. He just turned 60, and he appears still as hungry as Mr. Buffett at 30 years of age. - - - o 0 o - - - I just hope that Mr. Sørensen stays sharp on the company and its operations, right now owning 56,000 shares of the company, worth about 42 M DKK. Link to comment Share on other sites More sharing options...
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