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

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