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Jotun Presentation Link to video Loyalty Care Respect Boldness - PowerPoint PPT Presentation

Apr 04, 2023 •280 likes •547 views

Jotun Presentation Link to video Loyalty Care Respect Boldness Jotun Today Sales 9 819 15.8 Employees 14% NOK billion SCA 9% EBITA +100 EECA 1.8 10% 19% Countries WE NEA NOK billion 22% 2% 67 24% EBITA margin SEAP AM

  1. Jotun Presentation

  2. Link to video

  3. Loyalty Care Respect Boldness

  4. Jotun Today Sales 9 819 15.8 Employees 14% NOK billion SCA 9% EBITA +100 EECA 1.8 10% 19% Countries WE NEA NOK billion 22% 2% 67 24% EBITA margin SEAP AM MEIA Companies 11% ROCE 37 21% Factories

  5. Our Business Areas 38% 25% Decorative paints Marine coatings 27% 10% Protective coatings Powder coatings

  6. A story of growth… Sales and EBIT NOK million, Yearly Net Sales EBIT 18 000 2500 16 000 2000 14 000 12 000 1500 10 000 8 000 1000 6 000 4 000 500 2 000 0 0 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

  7. 100% figures vs Jotun Group reported figures Companies where Jotun hold 50% or less are not represented in Group Figures Revenue bridge NOK million, actual rates and growth % -0.5% 4 681 -3% 3 215 187 1 087 22 407 15 785 Jotun 100% MEIA NEA Group sales to Other income Jotun Group JV/AV

  8. Ownership structure • 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

  9. 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

  10. Jotun Group Sales slightly down after a outstanding 2015 Operating Revenue NOK million, actual rates, Year End Sales Growth A few things to be aware of: Lower intercompany sales • 24% – Jotun Cosco, China Other income included • 9% 9% in operating revenue impacted 6% 6% by Egypt currency loss -3% 10 659 11 351 12 034 13 171 16 282 15 785 2011 2012 2013 2014 2015 2016 10 | Group Finance | Financial Statements 2016

  11. Jotun Group EBITA slightly down EBITA & EBITA margin 2 500 30% NOK million, actual rates Sales EBIT% 25% 2 000 Second best result ever • 20% 1 500 Claims • 15% 12.7 % 1 000 11.2 % 10.4 % 9.9 % 10.0 % 10% Equity ratio strong and further • improved 53 % (2015: 52%) 6.5 % 500 5% 690 1 126 1 257 1 314 2 064 1763 0 0% 2 011 2012 2013 2014 2015 2016 11 | Group Finance | Financial Statements 2016

  12. Excluding currency effects: Record sales in Deco and Powder Sales per segment (100%-basis) NOK million, fixed rates Average growth (CAGR) Powder 2 250 7.3% Deco Protective 9.9% 8 697 Marine 10.9% 1 194 5 362 3 722 8.1% 2 108 6 097 3 037 Total 9.3% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  13. Raw material trend – 2008-2016 Consolidated raw material price Indexed numbers, weighted average RM prices 170 150 130 110 90 70 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Consolidated Corporate Marine Protective Decorative Decorative (SCA) Powder Forecast Note 1: The ”Weighted average All” is based on all RMs in the scope of the report Note 2: Re-purchase prices indexed based on purchased currency converted to USD

  14. Maintaining the investment targets Investments per region 2016 Investments per year NOK million, actual rates NOK million, actual rates, % of sales 1 332 1 209 1 201 AM; 26 WE; 985 NEA; 90 81 MEIA; 427 6.8% EECA; 91 6.1% 5.9% 5.4% SCA; 129 CORP; 181 SEAP; 306 2013 2014 2015 2016

  15. Maintaining the investment targets Investments year-end Production facilities NOK million, actual rates, % of sales • Oman • Philippines 1 332 • Myanmar 1 209 • Malaysia (Powder) 1 201 • Thailand (Warehouse) 985 R&D • Product development 6.8 % 6.1 % 5.9 % • Labs: UK, Korea, India, Gimle 5.4 % Admin buildings • Vindal and Gimle in Norway • Mumbai office in India 2013 2014 2015 2016

  16. Investing for future growth New Factories: • Completed 2016: Brazil Oman • Under construction: Myanmar • Started in 2016: Philippines and Malaysia (Powder) • Prospects: Egypt And: New R&D Centre and Group headquarters in Sandefjord

  17. New HQ and R&D centre in Sandefjord, Norway Started before summer - completed early 2019 Investment NOK 1.1 billion – 34.000m2 People 2019: 250 in HQ and 300 in R&D Capacity for growth

  18. Investments and net debt development (Jotun Group, actual rates) Equity ratio – Jotun Group NOK Million at year end Invested in factories and working capital Accumulated Net debt (accumulated) 14 374 13 906 11 452 8 990 7 576 7 107 5 208 4 265 3 956 2 235 2 108 1 919 1 667 1 602 1 336 1 220 1 193 439 429 351 -167 261 213 195 121 -18 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  19. Solid financial position Equity ratio – Jotun Group Net debt/EBITDA – Jotun Group At year end At year end Covenant: > 25% Target: > 50% Covenant: Below 4.0 Target: Maintain IG rating 57% 56% 1 54% 53% 52% 51% 51% 0.8 0.7 0.6 0.6 0.6 -0.1 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

  20. Debt and Financing Structure • Long term debt is held by Jotun A/S • Companies receive 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

  21. Dividend policy. Jotun Group. Dividend payments vs Profit NOK Million at year end Profit for the year Dividend • Same equity last 5 years 1416 • Maintain equity 1132 ratio above 50% 946 857 795 634 513 513 513 513 513 513 2011 2012 2013 2014 2015 2016

  22. Debt funding - Jotun A/S Loans per September 2016 Maturity Loan type Amount (MNOK) May 2019 Bond 400 May 2021 Bond 300 Jan 2024 NIB loan* 1057 Sum 2357 *Nordic Investment Bank, USD 120 mill, USD rate 8,36

  23. Available credit lines - Jotun A/S Long term Credit facilities per September 2016 Maturity Bank Amount Years to (MNOK) maturity August 2019 SEB 400 2 January 2021 DNB 400 3,5 Total 800

  24. Financing needs going forward • Organic growth expected to continue • Financing needed for investments and working capital • Mostly financed by internal cash surplus, but moderate debt increase is expected given present dividend level • New R&D facilities and offices in Sandefjord will require financing in 2017/2018 NOK 1 100 mill investment approved − • Norwegian bond market as primary funding source

  25. Summary • Jotun develops steady and as planned • Some headwinds in Marine and Offshore markets • Still a lot of opportunities in other segments • Good cash flow and robust balance sheet

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