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1 Company Presentation September 2015
The Jotun Group
Company Presentation September 2015
2 Company Presentation September 2015
The Jotun Group
3 Company Presentation September 2015
The Jotun Group
34 factories
44 countries
9 700 employees
682 million litres / kg
in 2014
17,5 BNOK sales
in 2014
Jotun in numbers
4 Company Presentation September 2015
The Jotun Group
100% figures vs reported figures
17 542
13 171
4 371
Jotun 100% Eliminations Joint Ventures & Associated
Companies
Jotun Group
NOK million, actual rates and growth %
Revenue bridge 2014
9.5%
9.4%
5 Company Presentation September 2015
The Jotun Group
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
A story of growth…
EBITA NOK mill.
From 2003 the sales and EBITA is according to IFRS. Before 2003 the figures are according to NGAAP. 100% figures
Sales NOK mill.
6 Company Presentation September 2015
The Jotun Group
Among the fastest growing paint companies globally
Akzo Nobel
CMP
Hempel
Kansai Paint
Nippon Paint
PPG
RPM
SW
Tikkurila
Valspar
Jotun 100%
Jotun Cons
50
100
150
200
250
300
2002 2007 2008 2009 2010 2011 2012 2013
Historical sales developmentIndex, 2002-2013 (excl. Asian Paints)
7 Company Presentation September 2015
The Jotun Group
One of the 10 largest paint companies globally
19,4
15,1
10,2
4,1 4,1
3,0 2,7 2,7 2,1 2,0
1,6 0,9 0,9
0
2
4
6
8
10
12
14
16
18
20
Akzo N
obel
PPG
SW
Vals
par
RPM
Kansai P
ain
t
Jotu
n 1
00%
Nip
pon P
ain
t
Asia
n P
ain
ts
Jotu
n
Consolid
ate
d
Hem
pel
Tik
kurila
CM
P
Bn
US
D
Total sales 2013
8 Company Presentation September 2015
The Jotun Group
Global Paint Market – 110 bill USD Jotun has a 2,5% of total market and targets 70 bill USD market
9 Company Presentation September 2015
The Jotun Group
• Decorative paints
• Interior and exterior paints
• Consumers and professionals
• Marine coatings
• Ship owners and managers
• New building and maintenance
• Protective coatings
• Offshore, energy, infrastructure
• Hydrocarbon processing, storage tanks
• Powder coatings
• Appliances, furniture, building components,
pipelines and general industries
•
Our Business
10 Company Presentation September 2015
The Jotun Group
3 174
6 401
2 160
4 721
1 226
4 608
958
1 812
7 518
17 542
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Powder
Protective
Marine
Decorative
Segment sales last 10 years
NOK million, actual rates
Sales per segment
36%
27%
26%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Segment share of total Jotun sales
Actual rates
11 Company Presentation September 2015
The Jotun Group
Regional sales 2014
Sales per segment per region
NOK million, actual rates, growth from 2013 to 2014
+13%
+14%
+8%
0%
+9% +4%
+35%
12 Company Presentation September 2015
The Jotun Group
Jotun’s strategy • Strategic direction remains unchanged
• Organic growth in new and existing markets
• 4 segments
• Differentiated approach
• Key success factors
• Jotun values and corporate culture
• People – hire, train and retain the right
type of competence
• Technology – forefront in selected areas
• Financial objectives
• Target 10% EBITA margin
• Maintain Equity ratio above 50%
• Maintain investment grade shadow rating
Time Pipeline
Sales
New
Fast Growing
Mature
Jotun Myanmar
Jotun Dubai
Jotun Turkey
Jotun Norway
13 Company Presentation September 2015
The Jotun Group
Corporate responsibility has high focus
• Values
• Compliance manual
• Business principles
• Leadership expectations
• Jotun decision making model
• Dilemma training
• “Jotun Green Steps”
• Audit of suppliers
• Project standards
14 Company Presentation September 2015
The Jotun Group
Research & Development
• Approx. 300 people in R&D
• Group R&D centre in Norway
• Regional labs in
• UAE
• Malaysia
• South Korea
• USA
• China
• Czech Republic (powder coating)
• Thailand (powder coating)
• Rising investment in R&D
• Recent successful innovations: HPS and Jotachar
15 Company Presentation September 2015
The Jotun Group
Summary and outlook
• Growth in all regions and segments, but Marine
remains fragile
• Recent new market entries
• Myanmar, Marocco, Algeria, Philippines,
Angola, Kenya
• Continued investment in capacity and
innovations
• USA, Brazil, Russia, Oman and China
• HPS and Jotachar
• Good profitability
16 Company Presentation September 2015
The Jotun Group
• Approx. 680 shareholders
• Gleditsch family holds 54 %
• 59 % of votes
• Orkla holds 42,5 %
• 38,2 % of votes
• Historically careful dividend policy
• Good cooperation between Orkla and
the Gleditsch family
Ownership structure
17 Company Presentation September 2015
The Jotun Group
Financial policy
• Have a financial solidity that ensures financing
flexibility
− Equity ratio above 50%
− Prudent financial risk management
− Organic growth
• Have an average time to maturity of at least 2
years for long term loans and credit facilities
• Have a contingency credit reserve equivalent
to 5% of operating income
• Within policy target at present
18 Company Presentation September 2015
The Jotun Group
Solid financial position Jotun Group
Covenant: Above 25% Target: Above 50%
Net debt compared to assets BNOK
Covenant: Below 4 Target: Maintain IG rating
Net debt/EBITDA Investments in % of sales
19 Company Presentation September 2015
The Jotun Group
Debt and Financing Structure
• Long term debt is held by Jotun A/S
• Companies get long term funding from Jotun A/S
• Companies have local short term bank lines
• Jotun A/S repatriates cash through dividends and
royalty payments from companies
• Dividend to shareholders evaluated each year in
light of capital needs and solidity target.
Jotun A/S has the last 4 years paid NOK 513 mill
in yearly dividends
20 Company Presentation September 2015
The Jotun Group
Debt funding - Jotun A/S
Maturity Loan type Amount (MNOK)
Tenor
May 2016 Bond 600 3 y
May 2019 Bond 400 5 y
May 2021 Bond 300 7 y
Jan 2024 NIB loan* 984 10 y
Sum 2284
*Nordic Investment Bank
Long term loans per August 31, 2015
Short term loans per August 31, 2015
Maturity Loan type Amount (MNOK)
Years to maturity
October 2016 Certificate 100 0,1
21 Company Presentation September 2015
The Jotun Group
Available credit lines - Jotun A/S
Long term Credit facilities per August 31, 2015
Maturity Bank Amount (MNOK)
Years to maturity
August 2019 SEB 400 4
August 2016 DNB 400 1
Total 800
22 Company Presentation September 2015
The Jotun Group
Financing needs going forward
• Organic growth expected to continue
• Investments and build up of working capital will
require financing
• Mostly financed by internal cash surplus, but moderate
debt increase is expected given present dividend level
• Plan for new R&D facilities and offices in Sandefjord will
require extra financing in 2017/2018. Investment not
yet approved.
• Norwegian bond market as primary funding source
• NOK 600 mill bond with maturity May 2016 to be
refinanced
23 Company Presentation September 2015
The Jotun Group
THANK YOU FOR YOUR ATTENDANCE