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Jotun Group
Jotun – A growth story….in the paints and coatings industry
Jotun Group
Jotun – a global company….…..with regional strongholds – Middle East, Asia and Scandinavia
• Total sales USD 2 billion*
• EBIT margin 11.2%
• 9th largest paint company in the world
• 41 factories located on all continents
• 70 companies in 40 countries
• 7 800 employees
• Head office in Sandefjord, Norway– 2 divisions managed from Dubai
Jotun today
* Consolidated figures
Jotun Group
A story of growth….
Excellent people working in a unique corporate culture…..….The Penguin Spirit
A long-term strategy that stays firm…….Organic growth….Multi-local vs global
Unique geographical footprint accelerates growth
Jotun Group
Decades of growth and profitability……NOK million
Consolidated figures0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
Net Sales
0
200
400
600
800
1000
1200
1400
EBIT
Jotun today
Jotun Group
Strong in selected segments and marketsGlobal market - our segments
Protective10%
Marine5%
Powder12%
Decorative73%
Market size : USD 80 billion
Global market - our sales
Marine33%Powder
11%
Protective20%
Decorative36%
Jotun sales : USD 2.4 billion
Jotun1.5%
Others98.5%
Jotun6.0%
Others94.0%
Jotun4.0%
Others96.0%
Jotun20.0%
Others80.0%
Decorative Powder Protective Marine
Jotun Group
Very strong positions in selected markets
Decorative Protective Marine
Share Position Share Position Share Position
UAE - Abu Dhabi 42% 1 50% 1 - -
Saudi Arabia 15% 1 17% 3 17% 3
Egypt 10% 3 48% 1 50 % 1
Yemen 6% 3 55% 1 - -
Syria 10% 4 - - - -
Jordan 15% 3 - - - -
Oman 52% 1 48% 1 - -
UAE - Dubai 46% 1 37% 1 38% 2
Bahrain 32% 2 26% 2 40% 1
Kuwait 18% 2 16% 2 26% 3
Qatar 38% 1 9% 2 4% -
Jotun Group
Strong growth and stable profitability
02468
10121416
2003 2004 2005 2006 2007 2008 2009 2010
Annual volume growth %
2527293133353739
2003 2004 2005 2006 2007 2008 2009 2010
Manageable cost Working capital
Manageable cost / Working capital %
0
2
4
68
10
12
14
2003 2004 2005 2006 2007 2008 2009 20100
5
10
1520
25
30
35
2003 2004 2005 2006 2007 2008 2009 2010
EBITA % ROCE %
Jotun Group
Ownership structure….…..supports a long-term approach
Jotun today
• Approx 400 shareholders
• Gleditsch family holds 54%– 59% of votes– 68 family shareholders
• Orkla holds 42.5%– 38.2% of votes
• Prudent dividend policy
• Excellent cooperation between Orkla and Jotun
Jotun Group
Jotun Protects Property
Loyalty Care Respect Boldness
The Penguin Spirit
Jotun Group
Our corporate culture is unique….….Penguin day Shanghai, Expo Main Hall
Jotun Group
A simple strategy that stays firm
– The strategy is based on the present portfolio of businesses– Powder– Marine– Protective– Decorative
– Organic growth– Existing markets– New markets
– Differentiated approach– Multi-local
Strategy
Jotun Group
Decorative Paints develops in emerging markets
Strong in mature Scandinavia– Branded products– Fighting private labels– New manufacturing structure
Strong growth in selected markets– Jotun as the brand– Distribution of Multicolor tinting
Innovations
Strategy
Jotun Group
Jotun Group
Protective Coatings is growing fast globally
Profitable growth in many markets
Adding new concepts– Oil & Gas– Energy
Selected markets are important
Global key accounts– Network
Innovations based on concept needs
Strategy
Jotun Group
Marine Coatings is a truly global business
Strategy
Global delivery capabilities
Focus on profitability regardless of cycle
Demanding delivery structure
Few very important markets
Innovations consist of more than the coating
Jotun Group
Powder Coatings offers growth opportunities
Industrialized products
Environment
Selected markets
Synergies with other segments
Strategy
Jotun Group
Growth characteristics – future opportunities
0
50
100
150
200
250
300
Asia Middle East Scandinavia Rest ofEurope
Rest of world
2003 2010
Jotun facts
Volume performance per region Market ”logic”
Jotun Group
0
100
200
300400
500
600
700
2002 2003 2004 2005 2006 2007 2008 2009 2010 Est 11
050
100150200250300350400450
2004 2005 2006 2007 2008 2009 2010 2011
Organic growth in IndonesiaSales Development (Bill IDR) History
1983 – Agent1986 – Local production with partner1996 - Est. Jotun Indonesia
- 2 factories2000 – Decorative2004 – New powder factory2005 – New paints factory
Success factors
• Long term – organic growth• Corporate culture • Multicolor• Local production• Early to market• Strong local organization• Regional support
No - Multicolor
-20
0
20
40
60
80
100
2004 2005 2006 2007 2008 2009 2010 Est 11
EBITA
Jotun Group
Future growth………..is not limited by number of potential markets
• Russia• USA• North Africa• China• Brazil• South America• Bangladesh
Jotun Group
A story of growth….
Excellent people working in a unique corporate culture…..….The Penguin Spirit
A long-term strategy that stays firm…….Organic growth….Multi-local vs global
Unique geographical footprint accelerates growth
Jotun Group
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