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Selfinvest: Growth strategy yields third highest result ever

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Selfinvest: Growth strategy yields third highest result ever

Torben Østergaard-Nielsen

• In the financial year 2020/21, Selfinvest achieved a revenue of DKK 66 billion – EBITDA of
DKK 948 million and a profit before tax of DKK 621 million.
• Selfinvest, the Østergaard-Nielsen family office, cements its solid financial position within
investments that contribute significantly to the overall result.
• The pandemic crisis caused a significant change in supply and demand in the global freight
market, which combined with the collapse of the oil prices resulted in a sharp decline in
earnings at the Group’s shipping company and the bunker-related companies.
• Record results in several of the Group’s companies.

In recent years, Selfinvest has pursued a comprehensive growth strategy that will give the entire group
more legs to lean on. The effect of the strategy can be clearly read in the Group’s annual report, where the
year’s notable acquisitions, strong performance in several USTC companies and not least a significant
gain from financial investments give a satisfactory total profit before tax of DKK 621 million.

The Selfinvest Group thus achieved the third highest profit before tax ever, which was far from a given in a
very unusual year. The COVID-19 pandemic resulted in a dramatic drop in global freight market demand
and combined with collapsing oil prices, this has significantly affected earnings.

“Considering the uncertainty, we saw at the start of the financial year and how turbulent the year has
been, I am proud of the results we have achieved. We have managed to grow and expand our market
positions despite the crisis, and our employees around the world have delivered an impressive effort in a
very unusual year, ”says owner and CEO Torben Østergaard-Nielsen.

Bunker Holding maintained momentum in the financial year 2020/21 and delivered growth in volume of
10%. This resulted in improved market shares, but a declining bottom line due to a pressured bunker
market with very low oil prices. Differently with the logistics and shipping company SDK FREJA, which
more than doubled its earnings after a landmark year. Unit IT also reports good results with 25% growth
on the bottom line and focus on continued growth through acquisitions and new business areas. In
2020/21, Uni-Tankers was seriously affected by the pandemic in a rare and challenging year. The
company had to see revenue fall by 3.4% during the year to DKK 1,249 million. Finally, 2020/21 marked a
new record year for Selected Car Group, which acquired the company SpecialCars and achieved a profit
before tax of DKK 12 million corresponding to a growth of 43% compared to last year.

The USTC family

Investment company cements its financial strength
Selfinvest is the Østergaard-Nielsen family office, which manages the family’s assets. Throughout the
year, the company has continued its positive development as a holding and investment company and has
strengthened the investment platform so that today it is more broadly based and anchors the active
ownership of the Group. Overall, the business area delivered a satisfactory return with a total investment
result of DKK 202 million corresponding to a return above 16%.

“We have used the past year to think ahead and lay out a new strategy for our investment activities, where
we have especially upgraded investments in real estate and directly in growth companies. The return on
direct investments and real estate has increased significantly compared to last year, and our current
portfolio is characterised by great robustness, ” says Mikkel Hammershøj, director of Selfinvest.

Organic growth complemented by strong acquisitions
Selfinvest and USTC have either directly or through subsidiaries in the past financial year acquired several
companies in various industries that strengthen the existing legs of the business.

“We have chosen to make investments that can give the Group more legs to lean on. Looking back on the
past year, we have focused on strengthening and growing our various units. The acquisition of
OceanConnect, CM Biomass and FREJA are good examples of how far we have moved in just a year’s
time,” says owner and COO of USTC Nina Østergaard Borris.

One of the benefits of family ownership is the agility and rapid decision-making process that enables
Selfinvest and USTC to be at the forefront of market, product, and technology developments. At the same
time, family ownership provides the opportunity to have a longer perspective in mind.

“We have always been ready for change and to move the company to where the next opportunity is. At the
same time, we can plan and maintain a constant course without having to worry about temporary ripples
on the surface. This means that right now we are making investments that may not generate return next
year, but only in several years’ time, ”says Torben Østergaard Nielsen.

Expectations for the coming year
The Group’s activity level, revenues and earnings are generally affected by a number of external factors,
such as development in the global freight market, oil price development and the general development
within green energy. This year, the COVID-19 pandemic has contributed significant challenges for the
Group and its markets, which is not expected to continue at the same level in 2021/22, and thus the
expectations for the financial year 2021/22 are that earnings will be slightly above 2020/21 results

Bunker Holding
Bunker Holding is the world’s leading company within bunker trading. The company buys, sells and
supplies marine fuel and lubricating oil to ships. The three most important business areas are: Bunker
Trading, Risk Management and Physical Operations. Bunker Holding is present worldwide with 70 own
offices in 35 countries. Bunker Holding presents its annual accounts in week 26.

Uni-Tankers operates a fleet of modern and flexible product and chemical tankers, a total of 38 owned and
chartered vessels. The company has offices in Denmark, Turkey, France, and the US. Revenue fell by
3.4% during the year to DKK 1,249 million, which gave a negative net result of DKK 36 million. The result
for the year is not considered satisfactory but is seen as an inevitable consequence of the pandemic.

SDK FREJA is a full-service logistics and shipping company with 1,250 employees and operating in eight
countries. SDK FREJA’s main activities include freight forwarding within Road, Air & Sea, Project,
Logistics, as well as Stevedoring, Agency, Customs Clearing, Commercial Chartering, Liner and Cruise
services. The company has grown significantly in size during the financial year with the acquisition of
FREJA Transport & Logistics and in that connection changed its name from SDK to SDK FREJA. The
financial year 2020/21 was a milestone for SDK FREJA with the best result ever. Compared with last year,
operating profit (EBIT) before special items increased from DKK 37.7 million to 97.2 million, corresponding
to an increase of 158%. At the same time, revenue increased by 90% to DKK 2.6 billion.

Unit IT
Unit IT includes a wide range of advanced services in infrastructure and support of private and public
cloud solutions, including specialist units in cyber security, business intelligence and data platform. The
company is based in Denmark and have seven offices across the country.

Profit before tax for the year grew 25% to DKK 20.1 million. At the same time, revenue grew 18% to DKK
160 million compared to 2019/20. In addition, Unit IT was named Denmark’s Most Recommended
Company 2020 with a Net Promoter Score of 85.

Selected Car Group
Selected Car Group is a car universe that consists of Selected Car Leasing, which specialises in leasing
cars within the premium segment, and Selected Car Investment, which specialises in selling classic
investment cars, also as pool investments. Selected Car Group’s third business is the Selected Car
Collection, which houses one of Europe’s finest car collections – a venue for exclusive meetings, events,
and presentations.

2020/21 marked a new record year for Selected Car Leasing, which could report continued significant
growth. Selected Car Leasing achieved a profit before tax of DKK 12 million corresponding to a growth of
43% compared to last financial year, while revenue increased by 77% to DKK 735 million. In the past year,
Selected Car Leasing has strengthened its presence in the Copenhagen area by acquiring the leasing
company SpecialCars.

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