JENSEN-GROUP: Company Note: When I said “I do”, I didn’t mean laundry!

Jensen-Group 1H19 revenues were slightly lower y/y as work reserve at the beginning of the year was lower. We see a highly competitive market, especially for large projects. Nevertheless, we see them investing in the future: a) creating the future in laundry automation; b) a high-Tech and stand-alone strategy; c) investments in complimentary products and services; and d) aligning to create agile organization.

• We believe in Jensen-Group's two-tier strategy. After several years of investment in its Chinese facility, Jensen-Group can now export individual machines from that country that are sold under the 'Alpha by Jensen' brand, alongside its high-tech products from the Western factories. This two-tier strategy allows Jensen-Group to better satisfy its customers' needs.

• The strategy is also supported by products from its partner Tolon, which enables them to enter both commercial and large on-premise laundries. We believe that Jensen’s investments over the past two years are supporting growth, with two new factories, new distribution companies, the acquisition of a sub-supplier, a JV for software, an investment in robotics and a participation in Tolon.

• In the coming years, we see Jensen-Group continuing to invest in product development and market presence, thereby enabling it to better meet customers’ needs. Many of these development efforts are targeted at reducing energy and water consumption as well as increasing the availability of Jensen’s products and services.

• We still see three longer-term trends favouring laundry businesses that will result in more laundry and more laundry automation: 1) growth in laundry from a) higher spending on healthcare services b) more travelling and c) more tourism; 2) an increase in laundry automation from smaller workforces working fewer hours at higher average wages; and 3) more cleantech from a) water scarcity and b) higher energy costs.