Jotun Middle East, India and Africa (MEIA)

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Jotun in Iran

Jotun Middle East, India and Africa (MEIA)

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Jotun Middle East, India and Africa (MEIA)

Jotun Protects Property

Loyalty Care Respect Boldness

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Jotun worldwide

• NOK 20 billion in sales

• 10 000 employees • HQ in Sandefjord

• Family controlled

• Offices in 90 countries

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)

Eiffel Tower, Paris Metro station, Dubai

Canton TV tower, China

Marina Bay Sands, Singapore

Oasis of the seas Burj Khalifa, Dubai

Jotun Middle East, India and Africa (MEIA)

• Largest Paints and Coating manufacturer in the Region

• 13 manufacturing units including India and Pakistan

• No of employees 2,645

• NOK 5 billion turnover

• Contributing to 25% of the Group turnover and 40% of the Group

profit

JOTUN MIDDLE EAST, INDIA AND AFRICA (MEIA)

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

The MEIA Region – Growth cradle of the world

13 factories

63 countries 2600

Employees

27 offices

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Jotun MEIA sales History – a growth story

MEIA is highly growing Region with good future potential

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Jotun balancing business

opportunities and political

risks

Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)

Differentiation through 4 segments D

ecora

tive

Marine

Pow

der

Pro

tective

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)

Jotun in Iran

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

• Iran is the 2nd largest nation in the Middle East with population of 77 mil

• Rated as upper-middle income economy by World Bank (1/3rd population middle class). GDP per capita USD 13,000 (PPP)

• Literacy rate of Iran is high at 92%

• largest natural gas supply in the world and the 4th largest proven petroleum reserves

• Sanctions against Iran is hitting the economy

Iran a big potential market

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Paints market in Iran USD 400 mil dominated by local manufacturers

Big potential for quality international products

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Jotun in Iran for past 15 years Suspended operations in Protective, Marine and Powder

• Decorative: ‘Kishwood Industries’ Distributor from 1999. Distributor employees : 16

• Powder: ‘Poudre Range Moj’ from 2004 (On Hold from 2012). 70% volume through distributor and 30% Direct sales

• Protective: Direct sales through ‘Pars Corrosion’(On Hold from 2012). Employees : 4 (3 C/A and 1 Sales)

• Marine: Direct Sales (On Hold from 2012)

• 3 Full time Jotun employee based in Iran (1 Deco , 1 Prot and 1 Marine)

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Iran – 90 Mil people waiting for Jotun

Great opportunities for Jotun in Iran. The Jotun Penguins in Iran are ready for

the growth!

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

1. Sanction period: • Register Jotun as a sales company • Continue with current set up for Decorative

paints through distributor • Focus on Decorative projects and multicolor

distribution 2. After lifting of sanctions/Banking active: • Direct invoicing to customers by Jotun Iran

including current distributor • Resume Protective, Powder and Marine sales • Operate own warehouse and office

Jotun’s Approach and the way forward

Sales to reach USD 30 mil by 2020

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

• Legal consultants engaged – Lotfi & Lotfi to assist in incorporation

• 100% foreign investment allowed; Corporate tax – 25%. No tax on dividend (Norway treaty)

• UAE central bank not yet given green signal to local banks to start operations with Iranian Banks. International Banks expected to open up shortly

• Jotun Iranian is under tax registration (VAT, Social security)

• Same company can carry out manufacturing operations in future

Jotun Iranian registered as a Private Joint Stock company

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Jotun expects to continue its high growth and profitability in the Middle East markets!

Jotun in Iran – Peder Bohlin

Jotun Middle East, India and Africa (MEIA)

Jotun Protects Property