Our partnership approach
At the JCE Group, we have a long-term perspective and are prepared to support our core holdings in their development. We believe in local decision making, but recognize the
financial strength and funding support needed for portfolio companies to develop into global companies. That's how we partner!
The more formalistic relationship between the JCE Group and our portfolio companies is typically illustrated by our
“Corporate Governance”
model, while our mindset is best described by what we refer to as “Our approach to value creation”.
Corporate governance model - Listed core holdings Our ambition is to achieve influence on the development of our listed core holdings by being the largest or one of the largest shareholders in each of our listed core holdings.
However, to have a positive influence on the development of any company, industry insight is also required. Our ambition is to gain this through a recurring dialogue with company management, company visits and own research. Based on this, our ambition is always to develop an own action plan for each listed core holding, over time implemented through our Board representative(s).
Furthermore, we seek to exercise active ownership primarily through interaction with other shareholders and stakeholders (i.e. through the Board of Directors, Committees, and Shareholders’ meetings).
Read more Corporate governance model - Unlisted core holdings Our unlisted core holdings are always operated with independent P&L and balance sheet responsibility. This includes, among other things, financing on own merits free from any parent company guarantees.
The JCE Group always has the ambition to develop an own (i.e. JCE Group AB) action plan for each portfolio company and we exercise active ownership through Board representation and informal co-operation with management.
Furthermore, we believe in achieving re-aligned interests between owners and management through part-ownership by management (in the form of acquisition of shares).
Read more Our approach to value creation
Our approach to value creation, with regards to our strategic investments, is focused on three key pillars: sales
growth, margin expansion and capital efficiency. Sales growth: We focus on organic growth, but are always prepared to capture acquisition opportunities when
presented. “Profitable growth” is always an absolute requirement for us. Margin expansion: We focus on operational efficiency improvements as well as economies-of-scale.
We try to facilitate repositioning of our core holdings when necessary, for example from market follower
to market leader or profitable niche player. We also believe that improved “quality of earnings” is of importance,
as reduced earnings volatility results in lower overall risk. Similarly, we see activities to increase break-even levels
to be of significant importance. Capital efficiency: We focus on working capital management, but believe in avoidance of factoring and other
similar measures that do not contribute to long-term value creation. We provide our core holdings with significant
capex capacity to allow them to capture profitable growth and rationalization opportunities. We always try to find
the optimal capital structure for each of our portfolio companies in order to reduce the weighted average cost of capital. |