2015 JOTUN VALUES CONTENTS

INTRODUCTION At a glance // 02 LOYALTY Group key figures // 03 Jotun’s global history // 04 Reliable and trustworthy OUR BUSINESS // 06 Long term relationships between Celebrating 90 years // 08 customers, Jotun and colleagues Jotun Group // 10 Commitment to Jotun’s values, Marine Coatings // 12 strategies, policies and decisions Powder Coatings // 16 Decorative Paints // 20 Protective Coatings // 24 Loyalty CUSTOMERS AND INNOVATION // 28 Supporting Jotun’s HSE vision // 30 Green Building Solutions // 32 CARE CORPORATE RESPONSIBILITY (CR) // 34 Help and support others Managing Corporate Responsibility // 36 Display trust and empathy EMPLOYEES AND THE WORKPLACE // 38 Appraise and judge fairly Putting people first // 40 Protect internal and external Crisis management // 42 environment HSEQ management // 43 Safety at the workplace // 44 Risk and prevention // 45

Care Developing our dynamic workforce // 46 Competence counts // 47

RESPECT ENVIRONMENTAL COMMITMENT // 48 Jotun Greensteps // 50 Values differences in people Our carbon footprint // 51 Be honest and fair Taking responsibility // 52 A measure of success // 53 Build diverse teams across culture and gender JOTUN AND SOCIETY // 54 Follow laws and regulations Making a difference // 56 Fighting illiteracy // 57 Treat others the way they expect Responsible Purchasing – Leading from the front // 58 to be treated United on Anti-corruption // 60 Respect FINANCIAL INFO // 62 Chairman of the Board // 64 Consolidated financial statements // 65 BOLDNESS Executive summary of the financial statement // 69

Take initiatives to create the future COMPANY OVERVIEW // 70 Initiate and nurture change Organisation // 72

Communicate openly, honestly and with integrity

Be proactive

Address difficulties constructively Boldness AT A GLANCE GROUP KEY FIGURES

2 The Jotun Group is a matrix organisation divided into seven regions responsible for the sale (NOK MILLION) 3 PROFIT/LOSS 2015 2014 2013 2012 2011 of Decorative Paints and Marine, Protective and Powder Coatings. Operating revenue 16 282 13 171 12 034 11 351 10 659 The company has 37 production facilities in 21 countries, 63 companies in 45 countries and Operating revenue outside Norway in % 86 83 82 80 77 Operating profit 2 064 1 314 1 258 1 126 956 is represented in more than 100 countries around the world. Profit before tax 1 918 1 301 1 191 1 055 893 INTRODUCTION INTRODUCTION

Net cash flow from operating activities 1 500 919 819 902 303

PROFITABILITY

Return on capital employed, in % 1) 24.2 17.2 20.0 19.5 18.3 Operating margin, in % 2) 12.7 10.0 10.5 9.9 9.0 Return on equity, in % 3) 17.9 14.0 15.5 15.8 13.1 9 842 YEAR-END FINANCIAL POSITIONS Total assets 15 187 13 300 10 799 9 317 9 140 PEOPLE Investments in intangible and fixed assets 922 911 733 590 867 Equity (including non-controlling interests) 7 932 6 739 5 515 5 016 5 028 Equity / assets ratio, in % 52.2 50.7 51.1 53.8 55.0 REGIONS AM SCA WE EECA MEIA NEA SEAP

Americas Scandi- West East Middle North South navia Europe Europe East, East East Asia Number of employees in the Group 7 415 7 158 6 695 6 379 5 884 and India and Asia and Central Africa Pacific 45 Number of employees in the Group, including (NOK) Asia 100 per cent in joint ventures and associated companies 9 842 9 676 8 991 8 740 8 296 16 282 000 000 DEFINITIONS Operating profit + amortisation of intangible assets OPERATING REVENUE 37 FACTORIES COUNTRIES 1) Return on capital employed % = x 100 Average capital employed SALES EBITA Operating profit 21 000 2 100 2) Operating margin % = x 100

Operating revenue Total comprehensive income for the year 3) Return on equity % = x 100 18 000 1800 SEGMENTS Average equity Decorative Paints: Jotun manufactures, sells and distributes 15 000 1500 10% interior and exterior paints to consumers and professionals POWDER COATINGS worldwide. 12 000 1200 30% Marine Coatings: Jotun is a world leading provider of marine MARINE COATINGS coatings to the newbuilding, DryDock and SeaStock markets. In SALES AND EBITA DEVELOPMENT addition, Jotun supplies coatings solutions for megayachts and 9 000 900 (NOK MILLION) 24% BUSINESS leisure yachts. PROTECTIVE COATINGS SEGMENTS Protective Coatings: Jotun’s protective coatings are sold to 6 000 600 companies active in industries related to offshore, energy, infrastructure, hydrocarbon processing industry and mining. 3 000 300 Powder Coatings: Jotun Powder Coatings is a leading supplier to companies active in industries related to appliances, furniture, 0 0 36% 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2015 27DECORATIVE PAINTS+372610M building components, pipelines and general industries. JOTUN’S GLOBAL HISTORY

4 Jotun is organised into seven regions. 5 Each region has its own unique history.

EAST EUROPE AND SCANDINAVIA EECA NORTH EAST ASIA INTRODUCTION SCA CENTRAL ASIA NEA INTRODUCTION

Jotun was founded in Sandefjord, Lured to Turkey’s active shipbuilding industry, As early as 1961, Jotun had an office in Hong Norway in 1926. Building on the success Jotun formed a joint venture with a local Kong to serve Norwegian owners trading in the of its first marine coating, Arcanol, supplier in 1989. Economic reforms in the region, but it wasn’t until 1993, when Jotun the company grew quickly, selling 1990s lifted Turkey’s economy, creating formed a joint venture with a subsidiary of China’s to shipowners in Norway, Sweden demand for decorative paints, and protective state controlled shipping company COSCO, and Denmark. Further success with and powder coatings. With two factories that Jotun became a market player. Jotun also decorative products encouraged the in Istanbul, Jotun now supplies paints and established a joint venture with Chokwang Paints company to expand into Sweden (1969) coatings to 12 countries in Eastern Europe. In in South Korea in 1988, giving the company access and Denmark (1972). 1992, Jotun established a company in Russia to Korea’s expanding shipbuilding industry. Today, and in 2014 officially opened a factory near Jotun is a market leader in marine and protective St. Petersburg. coatings in the region. 1926 1108 2 1989 645 2 1988 2032 4

MIDDLE EAST, SOUTH EAST ASIA THE AMERICAS WE WEST EUROPE AM MEIA INDIA AND AFRICA SEAP AND PACIFIC

As with other regions, Jotun’s entry into In 1970, Jotun purchased the British Jotun opened its first overseas factory in Seeing a promising market for paints and coatings the Americas was driven by the Marine marine coatings manufacturer, Henry Libya in 1962. Other factories in Dubai in South East Asia, Jotun opened a factory in segment. The company established a Clark & Sons of Brighton, which (1975), Saudi Arabia (1984), Oman (1985), Thailand in 1968. Rapid economic development network of agents in key ports in Canada, gave Jotun more access to the British Egypt (1986), and Abu Dhabi (1995) soon in the region led to new companies and factories the US, and Central America (Panama). In fleet, international markets and later, followed, helping Jotun to become a in Singapore (1975), Malaysia (1984), Indonesia 1974, Jotun purchased a stake in an old production in Flixborough (1989). Jotun recognised leader in the region. Jotun also (1996) and Vietnam (1997). Factory construction is factory in Baltimore, but was unable to make also opened a powder coatings factory has two factories in Pakistan (2004) and in now underway in Myanmar and in the Philippines. the business work. In 2000, the company in the Czech Republic in 1995 and a 2008, the company completed a factory in Jotun also bought a factory in Australia in 1990. acquired a factory in Belle Chasse, Louisiana paint factory in Spain in 2000. Today, India. In 1995, Jotun bought a factory in Jotun is now represented in all countries in South to serve customers operating in the Gulf, Jotun has sales offices in about 20 South Africa, and over the past five years, East Asia. later refurbished in 2013. In 2015, Jotun European countries. the company has established companies in opened a new factory in Brazil. Morocco, Algeria and Kenya. 1974 209 2 1970 755 3 1962 2682 14 1968 2411 10 OUR BUSINESS 6 OUR BUSINESS Celebrating 90years//08 Protective Coatings//24 Powder Coatings//16 Decorative Paints//20 Marine Coatings//12 Jotun Group //10

OUR BUSINESS 7 OUR BUSINESS 8 (Jotun ChemicalFactory) in Sandefjord, Norway. Jotun KemiskeFabrik establishes the Odd Gleditsch 1926 Norwegian paint industry to survive, the company would have to Norwegian paintindustrytosurvive,thecompanywouldhave Gleditsch jr. (whobecametheCEOin1968)realised thatforthe paintcompanies.GleditschandhissonOdd and international characterised byintensecompetition,bothfrom domestic By theendof1960s,Norway’s paintmarketwas market leaderinNorway. Jotun’s abilitytodevelopqualitypaintsmadethecompanya the topfloorforhisR&Ddepartment.Overnext10years, factory, afive-storey buildingcompletedin1951,he reserved dominate theNorwegianmarket.Whenhebuilthissecond was Arcanol, anewgrey leadmarinepaintthatwouldsoon of technologyandrecruiting goodpeople. Hisfirstsuccess himself, hewasanaturalsalesmanandunderstoodthevalue paint factoryinSandefjord, Norway. Whilenotachemist In 1926,OddGleditsch,aformerseafarer, purchased anold ORIGINS INNORWAY reflection ofitsfounder’s businessphilosophy. and willingnesstoinvestinresearch anddevelopmentisa growth strategy, focusonbuildingastrong corporateculture, on technologiesdevelopedin-house.Yet Jotun’s prudent exceptions) hasgrown organicallyandrelies almostexclusively is unusualforaprivatelyownedcompanythat(withfew The rapidpaceofJotun’s growth, especiallyinthelast10years, remarkable successcanbetraced backtothebusinessphilosophyoffounderOddGleditsch. Jotun’s historyhasbeenshapedbyworldeventsandnewtechnologies, buttherootsofcompany’s CELEBRATING 90YEARS JOTUN GROUP that soondominatesthe corrosive marinecoating Jotun launchesArcanol, a highlyeffective anti- Norwegian market. 1931 Fenom, thecompany’s first market-leading decorative paint. Jotun launches 1953 employees livebytoday;Loyalty, Care, RespectandBoldness. was Gleditsch,afterall,whoembodiedthevaluesthatJotun R&D, organicgrowth strategyandstrong corporateculture. It recognise –andtakeprideinJotun’s enduringfocuson but unrecognisable toitsfounder. ButGleditschwouldcertainly Jotun’s history, creating atrueglobalgiant thatwouldbeall production technologiesandworldeventshaveallshaped from asmallshopinSandefjord. Advancesinchemistry, Much haschangedsinceGleditschbegansellingpaintmixtures adding protective andpowdercoatings toitsproduct portfolio. company,international andJotunexpandedintonewmarkets, Workers were recruited andtrainedlocally, creating amore United Kingdom,Turkey, andSouthKorea, amongothers. new factorieswere builtinDubai,Singapore, Malaysia,the Thanks tothebold,entrepreneurial spiritofJotunpersonnel, the mergerallowedJotuntoaccelerateinvestmentsoverseas. company openeditsfirstoverseasfactoryinLibya1962), markets(the While Jotunhadlongbeenactiveininternational GOING ABROAD balance sheetandaccesstoitsowntechnology:Jotun. The newentitywasnamedafterthecompanywithstrongest the termsofamerger, andin1972,anewcompanywasborn. act. Negotiatorsrepresenting fourmarketleadersmettodiscuss Jotun opensitsfirst overseas factoryin Tripoli, Libya. 1962 Jotun entersthePowder Coatings segment. 1968 the Board ofDirectors, becomes chairmanof replacing hisfather Odd Gleditschsr. Odd Gleditschjr. 1970 other paintcompanies, Jotun mergestocreate Norway’s largest paint Together withthree manufacturer. 1972 Chairman oftheBoarddirectorsin2000. A familybusiness:OddGleditschjr. (left)andson,OddGleditschd.y. ThethirdgenerationGleditschbecame Jotun launchesthe Multicolor in-shop tinting machines. 1976 into Protective Coatings Jotun formalisesentry 1988 segment. Uniform HSEstandards introduced. 1998 SeaQuantum, Jotun’s antifouling coating, premium marine is launched. 2000 profits andgrowth inall Jotun achievesrecord regions andmarkets. 2015

OUR BUSINESS 9 JOTUN GROUP

A REMARKABLE YEAR

10 Jotun’s strong performance in all segments and regions resulted in another year of record sales 11 and volume growth.

In 2015, a mix of favourable macro-economic trends helped lift Jotun continues to grow the organisation. In 2015, the Jotun’s overall results. Positive currency effects and lower raw company opened a new factory in Brazil, new offices in Egypt, OUR BUSINESS material prices inflated Jotun’s profits and the company’s overall expanded its factory in India and opened businesses in Kenya OUR BUSINESS growth was helped by a sharp increase in newbuilding orders and Mexico. The company has also started factory construction in the Marine segment. Jotun welcomed these favourable projects in Myanmar, the Philippines and Oman, and approved conditions, but the management team is more focused on the construction of a new corporate headquarters in Norway parts of the business it can control. And what makes 2015 that will include state-of-the-art Research and Development exceptional is that Jotun performed well in most areas, and for facilities. The success of Jotun’s premium products (e.g Jotachar the first time in recent memory, managed to grow the business and SeaQuantum) in 2015 serves as a strong reminder of in all segments and in all regions. the importance of retaining the company’s edge in product innovation. POSITIVE SALES AND GROWTH FROM PRODUCTS TO SOLUTIONS Jotun’s record profits are welcome, but a more accurate way to measure our success in 2015 is to look at positive developments While Jotun cannot expect favourable macro-economic effects in both underlying sales and volume growth and other financial to persist indefinitely, the company has built a strong platform indicators. For example, gross margins are up from last year, and to continue its positive growth trend. In addition to investing the company’s cash flow position has improved. It should also in new facilities, technologies and markets, Jotun is evolving be noted that the focus on controlling operating expenses – an from a products-based company to a solutions-based company. issue in years past – has been successful, with the company Rather than supplying paint, Jotun is working more closely ending the year with a reduction in costs relative to sales. than ever with customers – from homeowners to real estate developers, energy majors to shipowners – to develop solutions that meet their specific needs. This process may take time, but the management team is confident that it will help sustain Jotun’s growth for years to come. Jotun management team (from left): Geir Bøe, Group Executive Vice President (Performance Coatings); Morten Fon, President & CEO; Bård K. Tonning, Group Executive Vice President (Decorative Paints) and Vidar Nysæther, Group Vice President (CFO)

FULL TIME EMPLOYEES PRODUCTION FACILITIES PRODUCTION VOLUME TOTAL SALES Litres/kilos (1 000 tonnes) Sales in NOK billion

SCA SCA SCA SCA

WE WE WE WE EECA EECA 2015 EECA EECA MEIA 2005 MEIA MEIA MEIA SEAP SEAP SEAP SEAP NEA AM NEA NEA NEA Corporate AM AM AM

0 500 1000 1500 2000 2500 3000 03691215 050 100 150 200 250 300 01234567 12 OUR BUSINESS coated its10000 fuel costsandcorresponding emissions. In2015,thecompany products increasingly recognised byownersseekingtoreduce years, improved salesinthemaintenance business,andquality by asharpincrease innewbuilding orders overthelastcoupleof Jotun’s successintheMarineCoatingssegmenthasbeendriven MILESTONES ACHIEVED helped Jotunimprove profits inthesegment. with favourablerawmaterialspricesandeffective costcontrols, China andSouthKorea. Jotun’s strong salesgrowth, combined for marinecoatingsin2015.Growth wasespeciallystrong in Overall, Jotunrecorded asalesgrowth inexcessof20percent going forward. likely tooutstriptransportation demandintheyearsahead, thecompanyexpectsmoremodestgrowth Jotun enjoyedremarkablegrowthintheMarineCoatingssegment2015, butwith tonnage supply EXCEEDING EXPECTATIONS MARINE COATINGS Launched in2014,Jotun’s Hardtop Smartpack,aneasy-to-use specialised tankcoatingsandpaintsolutionsfortopsides. In additiontohullcoatings,Jotunmanufactures arangeof introduced in2012. (HPS) concept,thecompany’s premium antifoulingsolution, than 400contractsforJotun’s HullPerformanceSolutions antifouling firstlaunchedin2000.Jotunhasalsosecured more 51% NEA 6+ th vesselwithSeaQuantum,asilylacrylate PER REGION 4% AM SALES 6% SCA 11% SEAP 18% WE 5% MEIA JOTUN MARINECOATINGS 5% EECA 18+511514M LOOKING AHEAD leading manufacturer ofmarinecoatings. owners, thecompanyisconfidentthatitwill remain theworld’s continuing todevelopsolutionsmeettheevolvingneedsof forward. Byretaining Jotun’s advantageinproduct quality, and offshore vessels,creating somemarketuncertaintygoing the declineinpriceofoilhasforced lay-upsformany overcapacity haskeptfreight rateslowinmostsegmentsand hoped forimproved marketconditions today. However, tonnage optimism expressed byshipowners in thepast,manyofwhom demand. Indeed,Jotun’s successin2015isdueparttothe This makesitdifficultforshipownerstopredict transportation between thetimeavesselisordered andwhenitisdelivered. coatings are expectedtoleveloutnext year. Itoftentakesyears Based onreported orderbooks from shipyards, salesofmarine maintenance contracts. vessel, Jotunisinabetterpositiontosecure newbuildingand By offering completecoatingssolutionsforevery partofthe had successwithitspremium tankcoatingrange,Tankguard. topcoat, establishedagoodmarketposition.Thecompanyalso 2011 2012 2013 2014 2015 0123456 SALES INBILLIONNOK 7

OUR BUSINESS 13 14 OUR BUSINESS Jotun brand. began developingandmarketinghisownproducts underthe business thrived.Sixyearslater, heacquired afactory, and to hisstrong tiestolocalyards andshipowners,hissmall opened apaintsstore andships’chandlery in1920,andthanks thriving porttownofSandefjord, Norwayin1894,Gleditsch company’s founder, inthe OddGleditschinthe1920s.Born today isgrounded inaformulaforsuccessestablishedbythe Jotun’s remarkable positioninthemarinecoatingssegment other markets andsegments. the world’s leadingproviderofmarinecoatings, ithasshapedhowJotundevelopedin Jotun’s longhistoryservingthemaritimeindustryhasnotonlyhelpedcompanybecome NINE DECADESAT SEA MARINE COATINGS establish JotunasamarketleaderinmarinecoatingsNorway. Arcanol waseventuallyembracedbytheindustryandhelped took timeforGleditschtoconvinceownerstrythenewpaint, corrosive grey leadmarinecoatinghecalledArcanol. Whileit formulations. Hisfirstbreakthrough in1931wasananti- and recruited skilledchemiststogetwork onnewpaint Gleditsch equippedhisnewfactorywithasmalllaboratory, PRODUCT BREAKTHROUGH market, protective coatings. based andoffshore installations,helpingJotunenteranew developed forthemarinesegmentwere laterappliedtoland- For example,someoftheanti-corrosive technologiesoriginally markets, where thecompanymightsellotherkindsofpaint. owners andyards, andexposedJotuntopromising new they traded.ThisraisedJotun’s profile amongnon-Norwegian ensure hiscustomershadaccesstoJotunproducts, wherever warehouses andofficesindistantports shipyards to shipping isaglobalindustry. Overtime,thecompanyopened As aformerseafarer himself,Gleditschunderstoodthat antifouling, SeaQuantum. are coatedbyJotun–manywiththecompany’s revolutionary estimated oneoutoffivevesselsintheglobalmerchant fleet yards. Indeed,thecompanyhasbeensosuccessful thatan in product innovationandworkingcloselywithowners years, Jotunhasremained truetoGleditsch’s visionofinvesting While theshippingindustryhaschangedalotoverlast90 AN ENDURINGMODELOFSUCCESS In 2015,Jotuncelebratedthe10000 recognised asapioneerinpremium antifoulings. became amarketleader, helpingJotun tobecome Arcanol somanyyearsbefore, SeaQuantumeventually time before theindustryembracedSeaQuantum.Butlike corresponding emissions.Launchedin2000,ittooksome properties, reducing dragandloweringfuelcosts acrylate technologythatprovides predictable self-polishing The activecomponentinSeaQuantumishydrophobic silyl and salespersonneltogaintheconfidenceofshipowners. laboratory workfollowedbyaconcertedeffort bymarketing SeaQuantum’s successhasitsroots inyearsofintensive THE MEASUREOFSUCCESS SEAQUANTUM – stretches backalmostacentury. a successfullegacyofinnovationandmarketingthat SeaQuantum atCOSCODalianshipyard, helpingtocement th hull coated with hullcoatedwith

OUR BUSINESS 15 16 OUR BUSINESS drive Jotun’s product development. businesses whilesafeguarding theenvironment, continuesto demand forqualityproducts thathelpsupportcustomers’ parts (coilsprings,alloywheels,etc.).Increasing market industries suchaselectricalswitchgears,shelvingandauto architecture (windowframes,louvers,rebar), andgeneral conditioners, refrigerators, metalfurniture),constructionand These includeoilandgas(pipelines),consumergoods(air all overtheworldinabroad rangeofindustrialsegments. Jotun offers powdercoatingstomanufacturers operating SUPPORTING OURCUSTOMERS otherwise strong volumegrowth. with intensecompetitivepressure eroded profits derivedfrom conditions intheseregions. InTurkey, currency effects coupled Europe andScandinaviahasbeenflatduetosluggisheconomic rebar andpipelineprojects depressed sales.Growth inWestern slowdown inconstructionprojects andincreased competitionin company experiencedacontractioninSaudiArabia,where a However,U.A.E., China,India,RussiaandVietnam. the Coatings segment,ledbydouble-digitsalesgrowth inthe Jotun finishedtheyearwithpositive results inthePowder environmental objectives. not onlyoffersuperiorprotectionindifferentfinishes, buthelp customersachievetheirbusinessand To growinthePowder Coatingssegment, Jotunisproducingandmarketing innovative productsthat STEADY PROGRESS POWDER COATINGS 22% SEAP 5+ PER REGION 3% NEA SALES 5% SCA 10% 44% MEIA WE JOTUN POWDERCOATINGS 16% EECA 10+1644223M strengthen theirbusinesses. quality products, butsolutionsthat help meettheirneedsand to investinmarketingandR&Dprovide usersnotonlywith distributors toimprove marketpenetration. Jotunwillcontinue and architects, andworkingmore closelywithdealersand customers, buildingstronger relationships withconsultants company isworkingtosecure more agreements withglobal grow fasterinthissegment.To helpdrivethisgrowth, the segment in2015,Jotunrecognises that thecompanycan While satisfiedwithdevelopmentswithinthePowderCoatings ACCELERATING GROWTH coating systems. tosolvent-basedwet in thefurniture industryasanalternative products forMediumDensityFibreboard (MDF)usedprimarily components forbuildings.Jotunisalsodevelopingitslineof intensive anodisingprocess formanufacturers ofaluminium an environmentally totheenergyandwater- friendlyalternative furniture. Alsoin2015,JotunlaunchedtheAurora Collection, hazardous chrome platingprocess traditionallyusedformetal forthepotentially and sustainablepowdercoatingsalternative Late lastyear, JotunlaunchedUltraShine,asafe,affordable 2011 2012 2013 2014 2015 0123 SALES INBILLIONNOK

OUR BUSINESS 17 POWDER COATINGS

A POWDER PIONEER

Jotun differentiates itself through product innovation, solutions The company’s experience working with some of world’s largest 18 From its humble beginnings in Norway in the 1960s, Jotun Powder Coatings has emerged as 19 that improve efficiency for the customer, excellent technical architects, fabricators and contractors has helped Jotun become a a globally recognised provider of premium products to a broad range of industries. service, and its ability to manage complex, cross-border projects. recognised coating partner of reference for many iconic projects.

Powder coatings were developed by Dr. Erwin Gemmer, a coatings factory in Thailand. Other factories and companies soon German scientist, who registered a patent in May 1953 for followed in Malaysia, Turkey, the United Arab Emirates, Saudi OUR BUSINESS OUR BUSINESS the fluidised-bed process for the processing of thermosetting Arabia and The Czech Republic, among others. Jotun assumed PRESTIGIOUS PROJECT – LOUVRE ABU DHABI powder coatings. However, it wasn’t until the 1970s and 80s, full ownership of the powder coatings business in 2000. when electrostatic powder application systems were developed, Announced in 2007, Louvre Abu Dhabi is based on an Working with the international architects, façade that powder coatings began to emerge as a preferred Today, Jotun Powder Coatings is active in 75 different countries, intergovernmental agreement between the governments of consultants and a local façade contractor, Jotun created alternative to wet paint on selected metal substrates. with a global network of 11 production facilities and sales Abu Dhabi and France. The museum, which consists of a built samples using the Cool Shades collection – a heat-reflective offices in nine other countries. While representing a modest 10 up area of approximately 87 000 square metres (including architectural powder coating solution that reduces the per cent share of Jotun’s total revenues, growth in this segment 9 200 square metres of gallery space), is covered by a temperature of aluminium building components exposed EARLY ADOPTER is expected to accelerate. Increasing consumer spending on perforated dome of 180 metres in diameter. to the sun. The samples were approved and Jotun secured Jotun was an early adopter of this new technology. In 1968, the appliances, furniture and automobiles, and investments in oil, the contract, supplying more than 50 tonnes of powder company reached an agreement with a Norwegian chemist and gas and water pipelines, housing, and large-scale real estate The architectural metal work of the dome required a powder coatings to the project. entrepreneur Gunnar Myhre, to help finance the construction and infrastructure projects have created a growing global coatings solution that would keep the interior cool, with of a powder coatings factory in Larvik, Norway. Demand grew demand for powder coatings. Furthermore, powder coatings matched colours specified by the architect that had the correct The dome has been erected and the Louvre Abu Dhabi is steadily, and after establishing a leading domestic market are increasingly recognised as a more environmentally friendly ‘Albedo value’ – a measure of the reflecting power of a surface. scheduled to open to the public in December 2016. position, the company began to export to Europe and the alternative to industrial liquid paints because they are solvent- Middle East. In 1977, Jotun opened its first overseas powder free and do not contain VOCs. 20 OUR BUSINESS product forinteriors. In Turkey, JotunlaunchedFenomasticGüzelEvim,apremium launched theDurosan rangeofinterior andexteriorpaints. of interiorandexteriorpaints,whileintheMiddleEast,Jotun range. InSouthEastAsia,Jotunintroduced theEssencerange a numberofmedium-rangebrandstocompletetheproduct campaigns andproduct innovation. In2015,Jotunlaunched the shoppingexperienceinexistingstores, strong marketing an expandeddealernetwork,increased focusonimproving Jotun’s growth intheconsumermarkethasbeendrivenby PRODUCT INNOVATION market. interior segmentmadeupforslowsalesintheexteriorpaints double-digit growth. InScandinavia, Jotun’s growth inthe Turkey, Jotunrecovered from aslowstarttoendtheyearwith results, especiallyintheMiddleEastandSouth EastAsia.In to consumersandcontractors.In2015,Jotunachievedgood through aglobalnetworkofabout7500dealer shops,selling Jotun managesthesaleofbothinteriorandexteriorpaints needs ofconsumers, projectownersandcontractors, JotunwillcontinuetogrowintheDecorative Segment. By continuingtoprovideinnovative andmoreenvironmentallyfriendlyproductssolutionsthatmeetthe OUR MARKET UNDERSTANDING DECORATIVE PAINTS 50% MEIA 20% 23+ SEAP PER REGION 2% NEA SALES 23% SCA JOTUN DECORATIVE PAINTS 2% 3% EECA WE 2+35020M evolving trends incolour, finishandusability. environment anddevelopproducts andsolutionsthatmeet it mustremain sensitivetoincreased aboutthe publicconcerns forward, thecompanyrecognises thattocontinuesucceed, appeal toownersseeking‘green building’ certification.Going cooperation withProtective andPowder Coatingssegmentsto coatings. Boththewebsiteandconceptwere developedin Solutions) tohighlightJotun’s rangeofenvironmentally friendly need. Jotunalsolaunchedanewconcept(Green Building easier forapplicatorstofindthetechnicalinformationthey website toinspire architects andconsultantsmakeit local salespersonnel,Jotunlaunchedanew, B2Buser-centric to workmore closelywiththeprofessionals. Insupportof In theproject market,thecompany steppedupitsefforts REACHING OUTTOTHEPROFESSIONALS marketing campaigns. in keymarketsaround theworldand developregionally specific global TVad(‘Jotun,ForIconicBuildingsandBeautifulHomes’) harmonious livingspace.Jotunalsocontinuedtorunitspopular, consumers withdifferent coloursandfinishestocreate amore tools andthe2015GlobalColourTrends, designedtoinspire The yearwasalsonotableforthelaunchofnewcolourselection 2011 2012 2013 2014 2015 0369 SALES INBILLIONNOK

OUR BUSINESS 21 22 OUR BUSINESS newspaper alloverthecountry, everyday. campaign. Indeed,GleditschranaFenomadineveryNorwegian supported byabrandfocusednationwidesaturationadvertising market. Launchedin1953,Fenomwasastrong product, Fenom, oneofthefirstthixotropic alkydpaintsintheNorwegian After intensivelaboratorywork,Jotun’s own chemistsproduced THE FENOMPHENOMENON to getanedgeinthedevelopmentofalkydresin paints. Bryson andchemistsfrom Centro Research LaboratoriesintheUS founder, OddGleditsch,workedwithpaintpioneerH.Courtney- of Jotun’s competitorschosetolicensetechnology, Jotun’s a strong demandforinteriorandexteriorproducts. Whilesome technologies, developedinEurope andtheUnited States,created a post-warconstructionboom,andnew, easy-to-usepaint dates backtothe1950s.Attime,Norwaywasexperiencing Jotun’s firstseriouscommercial entryintothedecorativesegment winning formulaforinnovation, salesandmarketing, andbuildingstrongrelationshipswithdealers. Jotun’s firstbreakthroughdecorative paint was releasedin1953, aproductthatwouldhelpestablish COLOURING THEWORLD DECORATIVE PAINTS building standard, andcomplywiththearchitect’s design To helpthe architect andthecontractorqualify forlocalgreen the core ofPudong’s LujiazuiFinanceandTrade Area. specialised paintstotheShanghai Tower project, locatedat Burj KhalifainDubai.Lastyear, Jotunwasselectedtosupply Towers inKualaLumpur, andtheworld’s tallestbuilding,the buildings, includingtheEiffel Tower inParis,thePetronas is havingsuccessproviding decorativepaintstoiconic As aglobalplayerrecognised forsustainablepaints,Jotun SHANGHAI TOWER–‘GREENBUILDING’ on the126 specifications, Jotuntendered fortheluxuryexhibitionhall Paints segment. the world–isbedrock ofJotun’s successintheDecorative machine –whichcanbefoundinabout7500shopsaround concept quicklyembracedbydealers.Today, theMulticolor of testing,JotunlaunchedtheMulticolormachinein1976,a into basepaintsintheshopinsteadoffactory. Afteryears with variouscomputerisedmachinesthatmixedcolourants customers withawidercolourselection,Jotunexperimented Previously, paintswere soldinready mixedtins,buttoprovide a pioneerinthedevelopmentofin-shopmixingmachines. work orclevermarketingstrategies.Thecompanywasalso However, Jotun’s innovationswere notlimitedtolaboratory market decorativepaintsforyearstocome. served asamodelforhowJotunwoulddevelop,distributeand relationships withshopkeepersandcontractors. Fenom’s success Gleditsch andhisteamalsoworkedtodevelopgood But effective marketingwasonlypartofFenom’s success. commercial andfinancialcentre. for thecity’s growing confidence asanemergingglobal Tower, thetallestbuildinginAsia,hasbecomea symbol Opened tothepublicin2015, 632-metre Shanghai helped winthecontract. gradient effect, solvent-free usingwaterborne, paints,which pillar toshowhowtheproduct couldachieveasmoothand th floor. Jotunprepared alife-sizedsampleof

OUR BUSINESS 23 24 OUR BUSINESS Middle East,PolandandTurkey. Growth was supportedinpart Asia andIndia.Today, JotunisthemarketleaderinChina, infrastructure concept,especiallyintheMiddleEast,SouthEast In 2015,Jotunrecorded excellentoverallresults inthe assets, willhelpJotunstrengthen itspositionovertime. a specialisedcoldsplashcoatingdesignedforoffshore LNG good share ofactiveoffshore contracts.ThelaunchofJotatherm, coating (JotacharJF750)hasalready helpedthecompanysecure a and repair projects. Furthermore, Jotun’s premium mesh-free PFP Jotun isdevotingmore resources tosecure offshore maintenance forward. To offset expecteddeclinesinnewconstructionorders, trends haveandwillcontinuetoimpactJotun’s businessgoing new units,particularlyinyards intheAsiaPacific region. These projects tobedelayedorcancelled,resulting infewerorders for Persistently lowoilpriceshavecausedmanyplannedoffshore TROUBLE INOFFSHORE overall growth intheProtective Coatingssegment. in theChinesemarket,companymanagedtorecord modest in boththeoffshore marketgloballyandthegeneralslowdown industries insomemarkets.Despitefacingsignificantchallenges also suppliesprotective coatingstodistributorsservingdiverse offshore (mobilerigs,fixedplatforms,drilling,etc.)Thecompany processing plants,etc.),energy(thermal,wind, nuclear, etc.),and hydrocarbon processing (refineries, petrochemicals, gas infrastructure construction(buildings,airports,bridges,etc.), Jotun marketsprotective coatingstocompanies activein segment. The companyremainsconfidentthatgrowthinthissegmentwillaccelerate intheyearsto come. Despite challengesinsomeregionsandmarkets, JotuncontinueditsgrowthtrendintheProtectiveCoatings STRONG RESULTS PROTECTIVE COATINGS 36% NEA 2+ PER REGION 2% 20% AM SEAP SALES 2% SCA 8% WE JOTUN PROTECTIVECOATINGS 11% 21% EECA MEIA 8+112120362M industrial diversitywillsupportlong-termgrowth. concepts andregions intheyearstocome,Jotun’s regional and uncertainties maydepress salesofprotective coatingsinsome coatings directly toequipmentmanufacturers. Whilemarket is workingwithdistributorsinsomemarketstosellprotective protective coatingsavailabletomore users.Inaddition,Jotun company isalsoworkingmore closelywithdealerstomake and hydrocarbon processing projects inthefuture. The Jotun seessignificantgrowth opportunity servinginfrastructure processing industry. grow itsmodestmarketshare inthedynamichydrocarbon structures exposedtopoolfires onshore. ThisshouldhelpJotun passive fire protection coatingengineered tosafeguard steel work. Earlyin2016,JotunlaunchedJotachar1709,amesh-free products, thishasdelayedscheduledmaintenanceandrepair on refineries. Combinedwithimproved marginsfor refined for fuelinsomemarketshasalsoplacedsignificantpressure towers andbladecoatingsinselectmarkets.Risingdemand company hashadsuccessproviding specialisedcoatingstowind Jotun alsoperformedwellintheEnergyconcept,where the RISING DEMANDFORENERGY a LEEDcertification. of hazardous more airpollutants,userscanearn pointstoward together withJotun’s Hardtop Eco,apolyurethane topcoatfree cellulosicfirefilm waterborne protection coating.Whenused by thelaunchofSteelmaster1200WF, ahighly efficientthin- 2011 2012 2013 2014 2015 0123456 SALES INBILLIONNOK

OUR BUSINESS 25 26 OUR BUSINESS coatings formulations–toNorwegianyards buildingoffshore providing protective coatings–oftenmodifiedfrom marine represented agenuineopportunity. Thecompany began For Jotun,therapidgrowth ofNorway’s oilandgasindustry INDUSTRY FROM OFFSHORETOLAND-BASED infrastructure tobecomeamajorproducer ofoilandgas. over thenextdecades,Norwayquicklydevelopedoffshore the NorthSea.Asmore andlargerdiscoveries were made ushered inanewageofoffshore oilandgasexplorationin holding anestimated6.4billionbarrels ofoil.Thediscovery Petroleum CompanyontheNorwegianContinental Shelf, In 1969,thegiantEkofiskfieldwasdiscovered byPhillips different industrialsegmentsinmanymarkets aroundtheworld. specialised coatingstotheoffshoreindustry. The companyisnowrecognisedasanindustryleaderin Jotun’s entryintotheProtectiveCoatingssegmentbeganin1960s, whenthecompanystartedoffering INDUSTRIAL COATINGS A PROUDHISTORY IN PROTECTIVE COATINGS designed toensure environmentally friendlyoperations and The platform,whichisoperatedby ENINorge,hasbeen capacity of1millionbarrels. 3.9 millionsquare metres ofgasperdayand an oilstorage capacity of100000barrels perday, agasproduction of Industries inKorea, theplatformhasanoilproduction Designed bySevanMarineandfabricatedHyundaiHeavy towed intoplaceattheGoliatfieldinBarents Sea. Production, StorageandOffloading(FPSO)platformwas On May72015,theworld’s largestcylindricalFloating ENI GOLIAT–COATINGAGIANT been activesince1982. Jotun personnelinNorwayandSouth Korea, where Jotunhas The contractwassecured through close cooperationbetween platform. topsides, splashzonesandsubmergedelementsofthe project, usingninedifferent coatingssystemsto protect Jotun suppliedmore thanonemillionlitres ofpainttothe for operationontheNorwegianContinentalShelf. energy recovery consistentwithNORSOK,Norway’s standard the company’s annualrevenues. protective coatingscurrently represents aboutonequarterof Considered apromising growth area forJotun,thesaleof hydrocarbon processing, energy, infrastructure andmining. provides protective coatingstocompaniesactiveinoffshore, protective coatingsasastand-alonesegment.Today, Jotun 1988, thecompanyreorganised its businesstomarket coatings forbothoffshore andland-basedprojects. By network foundsuccessmarketingnew, ‘HeavyDuty’ As fabricationbegantomoveoverseas,Jotun’s global helped Jotunattractcustomersinotherland-basedindustries. decades inharshenvironments. Theseproduct innovations offer long-termprotection forsteelstructures operatingfor platforms. Intime,newpainttechnologieswere developedto

OUR BUSINESS 27 28 CUSTOMERS AND INNOVATION CUSTOMERS AND INNOVATION The substitutionprinciple//30 Green BuildingSolutions//32

CUSTOMERS AND INNOVATION 29 THE SUBSTITUTION PRINCIPLE

30 In addition to supporting Jotun’s growth through product innovation, Jotun R&D seeks to replace 31 potentially dangerous chemicals or compounds in paints and coatings formulations to meet with the company’s health, safety and environmental objectives.

While achieving Jotun’s HSE vision is the responsibility of the Jotun’s Chemical Policy organises potentially harmful entire organisation, Jotun R&D plays an important role in chemicals and substances into three categories. Examples of fulfilling the company’s goals. Jotun products are designed to substances banned in the last five years include lead chromates, protect assets longer (reducing waste) and the company has formaldehyde and carbendazim, among others. Examples of been successful in developing innovative paints and coatings chemicals and substances to be phased out over the next two that help users reduce fuel costs and corresponding emissions. years include phenol, biphenyl-2-ol and dibutyltin dilaurate, CUSTOMERS AND INNOVATION Over the past decade, Jotun R&D has focused on developing among others. Examples of restricted chemicals include CUSTOMERS AND INNOVATION less hazardous waterborne paints and coatings. This effort is crystalline silica, acid anhydrides and TGIC, among others. in response to new or existing regulations, but also market Jotun´s chemical policy is constantly evaluated and updated to demand. Users in all segments are seeking products that are reflect new information, and Jotun R&D personnel are active in easier to use and offer improved performance, but don‘t various regional and international working groups that assess contain potentially hazardous substances. the potential risks of certain chemicals and compounds.

CHEMICAL POLICY SAFEGUARDING JOTUN’S BRAND

Jotun’s HSE vision is also expressed in its internal Chemical By banning, phasing out or restricting the use of potentially Policy, which restricts or seeks to eliminate the use of potentially harmful substances from formulations, Jotun products represent dangerous chemicals or compounds. These include carcinogens, a reduced risk to the environment and the health and safety mutagens, reprotoxins, endocrine disruptors and persistent of workers and the end user. This work remains critical to environmental toxicants. Wherever possible, the company achieving Jotun’s HSE vision, and protecting and strengthening works in the laboratory and with suppliers to substitute any Jotun’s reputation and brand integrity. substance that represents a risk to users, Jotun personnel, or the environment, with more benign replacements.

MAKING SENS

Developed in response to consumer health concerns regarding solvents, allergens and other potentially harmful substances, Jotun launched SENS in 2008. SENS is a fast- drying solvent-free interior decorative paint that is virtually odourless.

The product has been endorsed by the Norwegian Asthma and Allergy Foundation (NAAF). In addition, SENS has been certified by the Nordic Council of Ministers’ eco-label (the Swan), and the EU Flower (a voluntary ecolabel scheme) established by European Commission. GREEN BUILDING SOLUTIONS

32 To meet emerging trends in green building construction, Jotun has introduced Green Building Solutions, 33 a tool to highlight the company’s comprehensive range of more environmentally friendly products.

The building sector contributes up to 30 per cent of global decorative paints, protective and powder coatings, which annual green house gas emissions and consumes up to 40 are often sold by Jotun as a Single Source Solution to project per cent of all energy. Given the massive growth in new owners seeking one supplier to provide long-lasting protection construction in economies in transition, and the inefficiencies and beautification of assets. of existing building stock worldwide, greenhouse gas emissions from buildings will more than double in the next 20 years. PRODUCT MODIFICATION

CUSTOMERS AND INNOVATION To comply with green building standards, Jotun has performed CUSTOMERS AND INNOVATION MEETING CERTIFICATION REQUIREMENTS an exhaustive review of all relevant products to verify if they To manage this environmental challenge, governments in match specific provisions, and refined and developed products some parts of the world offer financial incentives to owners when necessary to fill gaps. For example, Jotun now delivers the whose buildings meets specific criteria related to energy use, only globally available and third-party approved intumescent emissions output, materials used, etc. Examples of local and system that contributes towards satisfying credits under international building standards include the Building Research LEED (Penguard WF, Steelmaster 1200WF and Hardtop Eco). Establishment Environmental Assessment Methodology Furthermore, Jotun produces heat-reflective exterior paints (BREEAM), Leadership in Energy and Environmental Design and powder coatings (Jotashield Extreme and Cool Shades) (LEED) and ‘Three Star‘, China’s Green Building Design Label. to help buildings in warm climates save energy related to By providing owners with a complete range of paints and air-conditioning. coatings with low amounts of Volatile Organic Compounds (VOCs) and other harmful substances, Jotun can help owners Green Building Solutions is likely to be embraced by major win points towards certification. property developers and state-run organisations responsible for large, civic infrastructure projects, giving Jotun a competitive Green Building Solutions is designed to provide global advantage. Jotun can not only serve as a Single Source Solution specifiers and building owners with approved systems that supplier in all segments, but also offer paints and coatings that meet ‘green building’ requirements. The concept includes can help owners reduce their impact on the environment. 34 CORPORATE RESPONSIBILITY RESPONSIBILITY CORPORATE Managing Corporate Responsibility //36

CORPORATE RESPONSIBILITY 35 High standards of corporate responsibility and governance help drive business performance and market reputation, while securing enduring relationships with all our global stakeholders. The Board fully supports our CR activities, which are defined by our values and clearly aligned with the 10 United Nations Global Compact principles. Morten Fon, President and CEO MANAGING CORPORATE RESPONSIBILITY (CR)

36 Companies are defined by how they act. Jotun ensures a strong market reputation, while building lasting 37 relationships with all stakeholders, by engaging in a CR programme that is comprehensive, regulated and firmly embedded within our corporate culture.

All of Jotun’s activities are guided by our corporate values of • Provide and promote good labour conditions for employees, Loyalty, Care, Respect and Boldness. As the company grows while encouraging and facilitating their individual these values guide its evolution, helping new employees, offices development and markets stay true to Jotun and the Penguin Spirit. • Act responsibly to the environment (Jotun GreenSteps)

CORPORATE RESPONSIBILITY CORPORATE • Create long-term and mutually advantageous relationships RESPONSIBILITY CORPORATE Our approach to CR is central to this prudent, structured with suppliers growth. It ensures we develop in a way that delivers value • Identify new business opportunities to all stakeholders, while fostering a strong and sustainable international business. CORPORATE GOVERNANCE

Good corporate governance allows Jotun to operate in an STRUCTURED AND STRINGENT ethical manner, with clear strategic direction and business Our CR strategy is firmly anchored within the Board of Directors transparency. It is central to the administration of our CR and Group Management of Jotun A/S and administered programme, and vital to the on-going, sustainable growth and throughout the organisation, from corporate, to regional and success of the company globally. divisional levels. Jotun develops its approach to corporate governance through Locally it is managed through a combination of business the identification and promotion of best practices. Policies are reviews, financial audits, Human Resources (HR) reviews, Health, developed globally and implemented locally, with a system of Safety and Environment (HSE) audits, supplier audits and CR comprehensive audits and reviews ensuring that expectations reporting activities. This structure ensures that all of Jotun’s are understood and standards upheld. companies and employees, no matter where they are, are united by uniform standards and behaviour. Our evaluation of sound corporate governance includes – • Financial audits Our CR policies and practices are based upon the Human Rights • HSE audits convention of the United Nations (UN), the International Labour • Business reviews Organization (ILO) convention, Organisation for Economic Co- • HR reviews operation and Development (OECD) guidelines for multinational • Supplier audits companies, and the UN’s Global Compact principles. The CR function reports twice a year to Group Management In addition, Jotun shall always abide by, and enforce, local laws and once a year to the Board in relation to all anti-corruption in all its places of business. and whistle blowing cases.

BENEFITS FOR ALL CORPORATE RESPONSIBILITY E-LEARNING Our approach to CR ensures we – • Build a positive reputation in the marketplace In May 2015 Jotun launched a new CR e-learning module company’s efforts to combat corruption, and its interaction • Build a resilient and trusted company – both locally and for new and existing employees to help clarify and define CR with stakeholders. It also features dilemma training to provide globally expectations globally. The module covers a broad range of employees with valuable guidance on how to act when • Are a force for good in the communities where we operate, areas, including Jotun’s work with charities worldwide, the confronted by corrupt practices in a range of business scenarios. supporting development and protecting Human Rights 38 EMPLOYEES AND THE WORKPLACE EMPLOYEES AND THE WORKPLACE Developing ourdynamic workforce //46 HSEQ ManagementSystem//43 Safety attheworkplace //44 Competence counts//47 Risk andprevention //45 Crisis management//42 Putting peoplefirst//40

EMPLOYEES AND THE WORKPLACE 39 PUTTING PEOPLE FIRST

40 Jotun sees individuals, not job roles. We hire for the long-term, with a view to helping employees fulfil their 41 potential and contribute to the company in the most mutually beneficial manner. We care for them, and they care for Jotun.

THE FOUNDATION FOR SUCCESS KEY ACHIEVEMENTS IN 2015

Good companies need good people. Jotun has implemented a • Continuation of focus on training and certifying HR staff in global recruitment process that is both systematic and scientific. Jotun’s recruitment concept, strengthening a high quality, This reduces the risk of wrong hires and increases the likelihood globally consistent and professional recruiting process of employing people that embody our values, commitment and • Established and implemented JEC (Job Evaluation Course) ambitions. Through on-going development programmes and globally

EMPLOYEES AND THE WORKPLACE opportunities for new challenges, we encourage our people to • Consolidated the Dynamic Workforce concept with more EMPLOYEES AND THE WORKPLACE grow with the business, helping us retain our workforce and formalised requirements for High Level Management attract high quality candidates. positions, including cross functional and international experience • Increased regional accessibility and accountability for Rotation CREATING A POSITIVE ENVIRONMENT and Mobility There are implicit challenges in being a large multinational • Job guarantee for repatriating International Assignees organisation, but also real advantages. When growing, we • ‘Raising the Leadership Bar’ project initiated to strengthen need to ensure that wherever we are in the world, we remain a Jotun’s leadership capability and secure our leadership united organisation. To accomplish this, our global and regional pipeline HR functions collaborate closely to ensure that agreed standards are upheld and processes implemented worldwide. Whilst our PROTECTING HUMAN RIGHTS people come from many different cultures and backgrounds, and are spread over 200 different locations around the world, The cornerstone of Jotun’s HR practices is the protection of we are joined by our common set of values; Loyalty, Care, basic Human Rights. The company’s stringent labour policies Respect and Boldness. By believing that diversity is a strength, are anchored in the UN Human Rights and International Labour and actively promoting it through our hiring process and within Organisation conventions. In addition, all of our operations the workplace, our employees bring the corporate culture to life comply with local laws, international regulations and our own resulting in an even organisation every day. high standards. This ensures that – • Our employees’ rights are respected • Jotun is compliant with Human Rights ATTRACTING FUTURE TALENT • Employees can conduct their work without fear During 2015, HR has been building the framework for a • Equal opportunity is upheld throughout the hiring process, new Employer Branding initiative, set to launch in 2016. while discrimination of all forms is prohibited Working externally, conducting research amongst students and • Employees are fairly compensated Number of employees Female Male Nationalities professionals, and internally, assessing employee engagement • Employees can enjoy freedom of association Jotun total 9 842 1 779 8 063 85 surveys, the team has been striving to pinpoint what people are • Health and safety standards are adhered to Scandinavia 1 108 326 782 31 looking for in an attractive employer and how Jotun matches • All employees receive employment contracts and job West Europe 755 178 577 29 these preferences. This insight will lay the foundation for a descriptions East Europe and Central Asia 645 147 498 8 campaign promoting Jotun as a preferred employer. The main North East Asia 2 032 334 1 698 12 focus of the messaging will highlight how the company’s South East Asia and Pacific 2 411 592 1 819 23 innovations, developments and improvements are realised Middle East, India and Africa 2 682 163 2 519 50 through its employees. Americas 209 39 170 13 CRISIS MANAGEMENT HSEQ MANAGEMENT SYSTEM

42 Effective crisis management systems and procedures ensure that damage is minimised Jotun is committed to delivering high HSE standards across every element of its business – protecting 43 and commercial impact mitigated. employees, safeguarding the environment and continually improving our business performance.

Jotun has a well-structured and firmly established crisis Jotun never stands still. It is a growing international business, MEDIA MATTERS SIMPLE, INCLUSIVE AND CLEAR management plan that is embedded throughout the global with an expanding workforce, geographical reach and market organisation. The plan is tailored to cater for both group and Management of the media during a crisis is key. Negative penetration. This positive development can create strain upon Overall responsibility for the system remains with the general local levels, providing clear guidelines on how to handle critical exposure in the media can be detrimental to a company’s the HSE standards of any organisation, which may fragment manager, who ‘owns’ it and runs annual management and situations in a way that prevents, or minimises, harm to people, reputation and commercial success, quickly destroying a under pressure. Jotun is proactively meeting this challenge. tertiary reviews, while the site’s HSEQ manager coordinates the the environment, materials and corporate reputation. position built carefully over many years in business. system locally and provides support. We work hard to mitigate this risk, implementing a clear In 2015, Jotun introduced an internal training programme to structure that is centrally driven and locally executed. This leads To ensure adequate focus, a management representative PREPARED FOR ANYTHING EMPLOYEES AND THE WORKPLACE strengthen crisis management media skills. Communication to controlled growth, a clarity of expectation, and a HSE culture is assigned to each individual element, acting as its EMPLOYEES AND THE WORKPLACE Crisis situations addressed within the plan include incidents such responsible staff from the Middle East region convened in Dubai that is both uniform and unifying. ‘management sponsor’. as accidents, fire, IT security, terrorist attacks, kidnapping and in November for an intensive, day-long session that covered hostage-taking, sabotage, reputational issues, product failures, both theoretical and practical exercises. 2015 saw a major step forward in our delivery of worldwide, Each element is covered with details and clarity within the environmental issues, allegations of corruption, and personnel/ high-level HSE standards with the introduction of our new HSEQ system, which communicates well-defined requirements, labour matters. Attendees learned the dos and don’ts of interacting with Management System. tools and best practices. The tools and best practices for each journalists, how to tackle difficult issues by conveying clear area are taken from Jotun companies around the world that On a local basis, crisis management teams consist of a core corporate messages, and the value of adhering to the Jotun excel in that regard. This enhances buy-in, as their efficacy A YEAR OF CHANGE group, which can be enhanced with additional internal Media Policy, namely – can be demonstrated, while the procedures are sourced from resources dependent on the nature of a situation. An incident • Be open, but treat confidential issues with care Prior to the development of the system, HSE standards on a local employees/sites themselves, making the whole process of response team leader co-ordinates response personnel and • Be trustworthy level were controlled and maintained by the general managers. change more inclusive. crises management on the ground. The global and regional • Be proactive There was overall responsibility, but no clear structure for a Jotun crisis management team is available to provide further • Be targeted delegation of duties. The new HSEQ system transformed that. DELIVERING IMPROVEMENT support relating to the incident scene, external emergency • Be consistent services and the general implications/management of the crisis. Launched in June 2015, the HSEQ Management System aims By the end of 2015 Jotun’s HSEQ Management System was to divide HSEQ responsibility across the local management rolled out across 80 per cent of the company’s global network organisation, allowing for more individual focus on key of operations. The remaining sites will receive training and elements and making overall standards easier to manage. initiation activities during the first half of 2016.

The system covers the following 14 elements – A two-year implementation period has been set to allow for • Management requirements • Occupational health companies to adjust to the new structure. A gap analysis will be • Risk management • Environment carried out at each site after the first annual management review. • Work permits • Product safety • Incident and investigation • Management of change The new system, which is qualified as ISO compliant to • Training • Security standards 9001, 14001 and 18001, strengthens Jotun’s global • Technical safety • Emergency preparedness HSE structure and delivery, staying true to our commitment to • Personnel safety • Quality high standards and continual improvement.

Jotun provides media training exercises to help company representatives interact with the press. SAFETY AT THE WORKPLACE RISK AND PREVENTION

44 Jotun is committed to continually developing systems and procedures to ensure that it safeguards Jotun proactively addresses risk throughout its global organisation as part of its continuous effort 45 its people and the environment. to prevent incidents and ensure optimal safety standards.

Jotun works actively to provide uniformly high safety standards Jotun invests considerable resources in establishing preventative WORK PERMITS FIRE RISK ASSESSMENTS in all its worldwide operations, while allowing individual measures and procedures that safeguard our personnel, facilities companies the flexibility and resources to focus on the issues Personnel undertaking high risk and non-routine tasks, falling and the environments our people work within. The company In 2015 every one of Jotun’s global sites was charged with that are most important to them. This globally stringent, yet outwith their everyday job responsibilities, must apply for work has contingency plans in place for a variety of risks, such as undertaking a fire risk assessment. This involved mapping the locally responsive, approach allows us to build one strong safety permits. In 2015 Jotun introduced new work permit training, criminal activity or natural disasters, but our greatest focus is individual sites to determine factors such as – culture that is adaptable enough to suit the needs of all our including the development of an e-learning module. This provides centred on our greatest threat – fires. • The location of flammable materials personnel. employees with analysis and information relating to conducting • Potential ignition sources potentially hazardous tasks in the safest possible way. Jotun has a ‘zero tolerance’ regarding fires and a commitment • The positioning and availability of fire fighting equipment

EMPLOYEES AND THE WORKPLACE to reporting and investigating even the most minor incident. In • Action plans on how to reduce risk EMPLOYEES AND THE WORKPLACE ‘I CARE’ GOES LOCAL 2015 our global network of facilities recorded 18 such events. • Emergency response plans NEW SAFETY REQUIREMENTS In 2013 and 2014 Jotun rolled out the ‘I Care’ internal HSE None of these resulted in injury or serious damage to property, campaign worldwide. This year saw an evolution of the As part of our continual process of improvement in safety and none caused interruption to business. The Group HSEQ developed the assessment system and initiative, as responsibility for the activity moved from a global standards, Jotun conducts analysis relating to on-going injury commenced training in June. The site assessments themselves to local level. trends. This informs new systems and procedures to enhance were completed by the end of 2015. They will provide the LESSONS LEARNED our global safety requirements. company with a total picture of fire risk, facilitating greater Each company ran three campaigns of their own choosing. This Each incident is regrettable, but provides an opportunity to understanding and informing new preventative measures. allowed individual sites to focus on the areas of most concern In 2015 the company introduced new Personal Protective learn from our mistakes. Jotun’s stringent reporting of even to them, speaking directly to their own employees to raise Equipment (PPE) requirements to further prevent accidents the smallest event provides the company with a wealth of FURTHER ACTIONS awareness and address specific issues. The campaigns were and injury. From 1 June a requirement was introduced for all knowledge concerning risk. shared internally on a global basis, allowing companies to learn sites stating that safety glasses must be worn in factories at all In 2015 Jotun also – from one another’s initiatives. times, to prevent eye injury, while helmets are now mandatory In 2015 Jotun introduced ‘Lessons Learned’ for all fires, serious • Improved the requirement for electrical inspections and safety between warehouse aisles. injuries and high-risk ‘near misses’. This means that after every walks, in order to reduce the occurrence of electrical fires incident a report is produced including a description of the case, • Carried out inspections of all fire fighting systems as part These new global requirements are enforced and followed up its cause and actions required. of our HSE auditing process, while introducing further throughout the system of on-going safety audits. requirements in our HSEQ management system for fire Our aim is to learn from mistakes and implement preventative fighting actions. The Lessons Learned are distributed to company managers and HSEQ personnel, with required actions followed In 2016 we will – up through the HSE auditing process. • Commence further training of all our electricians to ensure LOST TIME INJURY RATE ABSENCE DUE TO SICKNESS uniform standards worldwide Number of injuries resulting in more than one day absence (In per cent of total working hours) for Jotun Group • Begin work on the classification of fires to differentiate per million working hours – (H-value) for Jotun Group THERMOGRAPHY between the seriousness of incidents and map trends Jotun conducted comprehensive thermography checks across • Introduce improved maintenance procedures for fire fighting 2015 2015 all of its global sites in 2015. This involved highly qualified equipment external contractors examining facilities with thermographic 2014 2014 cameras to detect the areas where fires are most likely to start. 2013 2013 This successful initiative allowed the company to identify issues, 2012 2012 rectify problems and gain a greater understanding of fire risk 2011 2011 potential and prevention.

0 123456 0 0.3 0.6 0.9 1.2 1.5 1.8 DEVELOPING OUR DYNAMIC WORKFORCE COMPETENCE COUNTS

46 Exposing employees to new challenges, cultures and business environments increases Jotun’s competence Jotun sees people as its most important assets. The company is dedicated to helping its employees fulfil 47 and capabilities, while further strengthening its global organisation. their individual potential, as they contribute towards collective corporate success.

In 2015, Jotun maintained its strong commitment to investing PEOPLE & LEADERSHIP RETENTION OF LEARNING in the development of employees worldwide. The Competence Jotun has always taken a long-term perspective with regards to Development department implements and supports activities Training is most valuable when it results in lasting positive its employees, as well as its business. Over the years we have throughout all segments and regions. change. In 2015, Jotun has been striving to enhance the made sure we develop the competence of our employees, retention of learning within the organisation and, by doing so, allowing us to fill managerial and specialist positions internally. This year the team focused its efforts on strengthening the secure greater returns on training investment. Today, more than ever, we need to ensure that we develop retention of learning and improving operational competence, competence and capacity to fill open managerial positions that while exploring fresh learning trends to support our drive for Efforts have focused on improving the learning process for

EMPLOYEES AND THE WORKPLACE are created through growth or replacements. continual improvement. all academies, emphasizing pre- and post-training work, and EMPLOYEES AND THE WORKPLACE embedding the lessons learnt by trainees in the most effective As an organisation, Jotun nurtures a culture of individual and manner. JOTUN ACADEMY professional development. We build employees’ skills and expertise so they are equipped to take on a variety of challenges The Jotun Academy is the hub for company learning. One notable development during the year was the in Jotun, limiting our need to hire externally when new Established in 2006, it has evolved to offer a wide range of implementation of Nano Learning in the Sales Academy. As the management positions are made available. Jotun is growing, valuable courses for employees at all levels and company name implies, this consists of a variety of ‘mini’ online lessons, and we want our people to grow with us. functions. lasting between two and four minutes, designed to refresh and consolidate the principal tools and methods used in training. A variety of initiatives and opportunities aim to give individuals Tailored courses are now available in human resources, a broad-based experience and understanding of Jotun, enabling marketing, sales, purchasing, R&D, operations, technical sales EMPOWERING THE WORKFORCE them to move both horizontally and vertically across the business. support, finance, and management, with an additional range of further stand-alone modules. Jotun’s e-learning programme connects the entire global organisation in one, virtual training environment. It gives the DYNAMIC WORKFORCE In 2015, the Academy launched several new training initiatives, company a platform for both the development of individuals In order to support Jotun’s organic growth ambitions, it is including – and the sharing and promotion of best practice throughout the necessary to stimulate a dynamic workforce. • Credit Manager Training (CMT) to secure desired return of organisation. investment on working capital Jotun must enable its employees to gain cross-department, • R&D Academy level 2 (RDA2) to ensure quality in all In 2015, nine new e-learning courses were launched. These -functional and -country experience, by offering opportunities laboratory work covered areas including Corporate Responsibility, A3 Problem for rotation, exposure and career development at all levels of Mobile employees from China, Norway and Malaysia. • Advanced Management Training (AMT) to further develop Solving, Hull Performance Solutions, HSE, and a variety of the organisation. experienced managers product based initiatives.

In 2015, Jotun has focused on developing solutions to enhance The Operations Academy has also undergone a process of The company is now proud to offer over 200 online courses, opportunities for workforce mobility and job rotation. We now updating and restructuring throughout the course of 2015, as giving any employee with access to a computer the opportunity have three Global Mobility programmes, designed to serve Flexible global mobility solutions serve to strengthen it looks to drive the sharing of best practice in the operations to develop their personal competence and enhance business different purposes for the employees and the organisation. collaboration and awareness of Jotun’s culture and values. network, facilitate learning through experience, and create a understanding. They are; Short Term Assignment, Mobile Workforce and more structured career path within operations. International Assignment. Jotun aims to give employees international exposure as early as possible in their careers. This means providing accessible Global In September, Jotun also launched A3 Problem Solving Training Our ambition for 2016 is for more positions to be made Mobility solutions at all levels in the organisation, in all countries. to enhance understanding of how LEAN principles can help the available to candidates from other countries and regions, in In order to achieve this, ownership and accountability to the company work smarter. order to give more employees the possibility to serve abroad. solutions must be shared on a local, regional and group level. 48 ENVIRONMENTAL COMMITMENT ENVIRONMENTAL COMMITMENT A measure ofsuccess// 53 Our carbonfootprint// 51 Taking responsibility //52 Jotun GreenSteps //50

ENVIRONMENTAL COMMITMENT 49 DEFINING ACTIONS OUR CARBON FOOTPRINT

50 Jotun GreenSteps is not just a framework for our environmental initiatives, but also a mind-set. It is As a responsible corporate citizen Jotun is committed to limiting the impact of its activities on the natural 51 embedded within Jotun, defining how we act and what we produce. It ensures that every move we make environment and reducing its carbon footprint. leads us towards the goal of a business that is responsible, sustainable and environmentally friendly. Companies can help mitigate environmental impact by CARBON FOOTPRINT REPORT increasing energy efficiency and reducing overall consumption. Jotun GreenSteps programme provides structure for our Sea Quantum X200 Hull Performance Solution (marine) Jotun is focused on both strategies, cutting our energy use per Jotun has reported annually on its carbon footprint for the

environmental efforts. It allows us to focus on five key objectives • The removal of formaldehyde from all products in the tonne of product manufactured, while seeking innovative ways Group since 2009. The report tracks total CO2 emissions by

that, together, help us reduce our impact on the environment Fenomastic range to enhance the sustainable credentials of our global network of region, detailing the CO2 output of each area and company, and provide greener solutions for customers worldwide. • The continued roll out of the Save Energy campaign facilities. and providing an in-depth picture of our overall environmental • LEED certification of Jotun’s new warehouse and office facility performance.

ENVIRONMENTAL COMMITMENT ENVIRONMENTAL in Cibitung, Indonesia We have built, and continue to develop, a robust culture of COMMITMENT ENVIRONMENTAL BENEFITS FOR ALL • Strengthening of the firm’s ability to deliver Environmental environmental responsibility that unites our people, operations The total emissions from Jotun in 2015 were 87 163 tonnes

Jotun’s commitment to producing cleaner, greener and safer Product Declarations according to customer needs and products. CO2-equivalents. The CO2 emissions per tonne produced has products delivers benefits for all our stakeholders. decreased by three per cent compared to 2014. Electricity consumption alone makes up 77 per cent of the total emissions. STEPS TO FOLLOW Greater efficiency and smarter energy consumption makes This is almost identical to the split in 2014. commercial sense for the business, while customers benefit In 2016 and beyond we will – from paints and coatings that offer long-term protection for • Work to ensure that the on-going development of the their property, while also helping them reduce their own carbon new headoffice including an R&D centre in Norway meets footprint. And, of course, all of society gains from better stringent environmental criteria – including achieving BREEM 14% industrial environmental performance. NOR ‘very good’ certification, installing an energy centre EMISSIONS PER TONNE PRODUCED INTERNAL TRANSPORT (Kg CO per produced ton) for Jotun Group utilising seawater for heating and cooling, and carefully 2 A cornerstone of our efforts has been the substitution of recycling materials from the old building 5% ENERGY GENERATION hazardous raw materials for less hazardous ones, while • Invest in factory upgrades to enhance efficiency and reduce 2015 maintaining, or enhancing, final product quality. The company carbon emissions. This will include assessing selected facilities 4% EMISSION 2014 dedicates a substantial part of its R&D resources to the for the installation of more environmentally energy sources, CHEMICAL PROCESS SOURCE EMISSIONS 2013 development of more sustainable products, solutions and such as proposed solar panels at sites in Norway and India technologies. • Work to reach our goal of reducing waste to a level of two 77% 020406080 100 110 per cent of our production volume ELECTRICITY • Continue to reduce TiO content in paint without impacting STEPS TAKEN 2 on quality or opacity 14+5477M In 2015, Jotun continued its programme of investing in • Further reduce the use of hazardous chemicals in products continual environmental improvement, undertaking a range of • Continue to reduce the level of solvents per litre in our key activities, including – marine and protective coatings LEEDING THE WAY • Introducing the Green Building Solutions initiative (see • Invest in education and engagement programmes to ensure separate article on page 33) that employees are environmentally aware and responsible in LEEDing the way in Indonesia: Jotun’s new warehouse and • Developing and launching products with enhanced their daily conduct office facility in Cibitung, Indonesia is indicative of the environmental credentials, effectiveness and durability. These company’s commitment to, and investment in, sustainable included, Ultrashine (powder), Hardtop Eco (protective) and industrial development. The recently opened site was LEED certified (Leadership in Energy and Environmental Design) in 2015, meaning it conforms to stringent standards set by the US Green Building Council. Through a combination of innovative measures, the facility saves resources, reduces operational costs, utilises clean energy, and impacts positively on the health of occupants. TAKING RESPONSIBILITY A MEASURE OF SUCCESS

52 Less waste, more efficiency. Jotun’s commitment to sustainable principles and actions ensures Over the past few years, Jotun has been working with other industry stakeholders and the International 53 that our global business continually enhances its environmental performance. Standards Organization to reach a consensus on a method for measuring hull and propeller performance.

Waste is an inevitable bi-product of manufacturing processes. 2015 saw a continuation of our programme to install In 2013, the International Standards Organization (ISO) Poor hull and propeller performance is estimated to account However, Jotun endeavours to reduce the proportion of waste Regenerative Thermal Oxidisers (RTO) at two plants in China established an expert group to start work on a common for around 10 per cent of the world fleet’s energy costs. By to production volumes on an annual basis, using materials with and one in South Korea, where a 50 meter high stack was also industry standard for measuring changes in hull and propeller creating a standard, the industry will have access to proven greater efficiency and recycling wherever possible. This reduces installed to counter odour release. Both these initiatives, in performance. One of Jotun’s employees was appointed by ways to measure speed loss, leading to better decisions about our impact on the environment and, in the long-term, also compliance with local requirements, enable the combustion of ISO to lead the project. The group has since come to include hull coatings and propellers. Improving hull and propeller enables greater cost control through enhanced efficiencies. solvents at much lower concentrations than normally required. representatives from ship owners, ship builders, class societies, performance can reduce the world fleet’s fuel costs by as much The entire investment in this activity amounted to NOK 50 million. paint manufacturers, performance monitoring companies and as USD 30 billion per year and achieve an estimated 0.3 per

ENVIRONMENTAL COMMITMENT ENVIRONMENTAL In 2015, waste accounted for 1.9 per cent of our global various research institutions. After more than two years of work, cent reduction in man-made greenhouse gas emissions. COMMITMENT ENVIRONMENTAL production volume, against 2.1 per cent in 2014. This is in line the ISO’s Marine Environment Protection Sub-committee (ISO- A NEW START IN NORWAY with our acknowledged drive to reduce waste vs. production to TC8-SC2) voted in favour of circulating ISO 19030 as a Draft ALIGNING HPS WITH THE NEW STANDARD two per cent by the year 2016. 2015 saw Jotun commence work on a major rejuvenation International Standard. on its new global headquarters at Sandefjord in Norway. In anticipation of final approval of the standard expected This extensive development includes an advanced, efficient, next year, Jotun will update Performance Guarantees offered WATER TREATMENT ENCOURAGING BEST PRACTICES innovative and sustainable R&D centre and offices, due to be as a part of its Hull Performance Solutions (HPS) so that they In 2015, Jotun’s worldwide operations produced 65 702 tonnes completed in 2018/19. The standard, which is expected to go into effect second half are fully compliant with the standard. Jotun’s HPS concept of waste water from the washing of production equipment, and of 2016, will accelerate industry-wide best practices and will combines premium marine coatings (SeaQuantum X200), manufacturing processes. This compares to 64 888 tonnes in Initial stages have focused on the careful dismantling of the offer much needed transparency for buyers and sellers of a priority technical service and on-board monitoring tools to 2014. We are committed to reducing this figure further through old buildings, including the old paint factory, with a firm focus wide range of fuel saving technologies and services, including measure hull performance, covering the entire period between better planning, efficiency and the recycling of water when and on sorting and recycling all waste. This process will deliver cost marine coatings. Previously, the lack of standards, combined dry-dockings. HPS was developed in part to provide the where possible. benefits for our business and stakeholders, while helping us with competing claims by rival paint manufacturers, left owners industry with real time data on long-term hull performance, limit the impact this ambitious project has on the environment. unable to make decisions based on reliable data. At the same and many elements of the HPS methodology informed the time, a renewed focus on operational costs and increasingly new ISO standard. Since the launch of HPS in 2012, Jotun IMPROVING AIR QUALITY strict environmental regulations encouraged owners to view hull has secured contracts for about 400 vessels. The company is The production of solvent-based paints results in emissions and propeller performance as an effective and affordable way to confident that the new ISO standards will generate even more to air. However, Jotun is working hard to manage VOC to air reduce fuel costs and their impact on the environment. interest in the HPS concept. discharge, investing in new technology to limit emissions.

+1.5% Improvement Drydocking interval (60 months) out of dock Jotun HPS guaranteed high performance HAZARDOUS AND NON HAZARDOUS WASTE ELECTRICITY CONSUMPTION –4.5% (Kg waste per tonne produced) for Jotun Group (Per tonne produced) for Jotun Group The average performance drop Non hazardous waste Hazardous waste over the period with Jotun HPS

2015 2015 ficiency caused by +15% Performance gain 2014 2014 Average over a 60 month Market average performance drydock interval 2013 2013 opulsion ef 2012 2012 2011 2011 –18% The market average hull performance drop 0510 15 20 25 0306090 120 150 over the period % change in pr bio-fouling and mechanical damage JOTUN AND SOCIETY

54 55 JOTUN AND SOCIETY JOTUN AND SOCIETY

Making a difference // 56 Fighting illiteracy // 57 Responsible purchasing – leading from the front // 58 United on anti-corruption // 60 MAKING A DIFFERENCE FIGHTING ILLITERACY

56 Every year, thousands of people all over the world are killed or injured by landmines and other Explosive With 63 companies all over the world, Jotun is active in a broad range of projects designed to make a 57 Remnants of War (ERWs). Working in cooperation with Norwegian People’s Aid, Jotun is sponsoring a mine difference in local communities. In Egypt, Jotun’s support for primary schools is helping to fight illiteracy. detection dog to help clear affected areas.

By some estimates, landmines and unexploded ordinance affect releasing up to 800 square meters of land in a single working the lives of people living in 78 countries around the world. Even day. In addition to a breeding programme, the centre trains in countries no longer subject to violent conflict, landmines about 70 dogs every year. JOTUN AND SOCIETY and ERWs remain a threat decades after hostilities cease, JOTUN AND SOCIETY representing a significant public health risk and slowing post- DE-MINING IN CAMBODIA war development and economic recovery. Most of the financing for the NPA Global Training Centre comes from the Norwegian government, but the organisation also TAKING ACTION seeks support from the private sector. In 2015, Jotun agreed to Founded in 1939, Norwegian People’s Aid (NPA) is engaged sponsor a puppy (a nine-month old Belgian Shepherd Malinois), in more than 40 countries offering a broad range of services, and gave him the name ‘Jotun’. Once fully trained, ‘Jotun’ and including de-mining, humanitarian relief, and promoting his handler will join 80 other NPA dogs in Cambodia, where an democracy, the rights of indigenous people, equality and the estimated three to five million mines and ERWs lie hidden under fair distribution of land and resources. At present, NPA operates the soil. de-mining activities in 16 countries, including Cambodia, Angola, Somalia, and Bosnia and Herzegovina, where the The project is consistent with Jotun’s approach to CR activities, organisation operates the largest mine detection dog training especially in regions where the company is active. NPA is a centre in the world. global organisation, but their impact is local and has a direct, measurable and almost immediate positive effect on local While NPA personnel also use mine-detecting equipment, communities. Jotun is proud to support the work of the NPA Students at the Nagaa Selim Sheik Hamad School, Sohag, Egypt, together with representative from Jotun. specially trained dogs can cover more difficult terrain and locate and will follow ‘Jotun’s’ career when he begins to work in a mine 20 times faster than a de-miner using a metal detector, Cambodia, where the company has been active since 2008. Jotun’s community support activities vary by region, local needs To establish the programme, Jotun representatives met with and the size of Jotun’s organisation. In markets new to Jotun, government officials and conducted a survey to identify schools such as Kenya or Myanmar, the scope of activities tends to be in need. Working with local sales personnel and contractors, modest, while in markets where Jotun has been established for Jotun identified five schools, including the Nagaa Selim Sheikh decades, activities are often more extensive. Hamad School in Sohag, in Egypt’s Upper Nile region, where illiteracy rates are high. STRUCTURED CR LONG-TERM SUPPORT In Egypt, where Jotun has operated a factory since 1986 and has a staff of 350, the company has a long tradition of Nagaa Selim Sheikh Hamad School has space for about 240 supporting various causes – from donating paint to orphanages, students and 15 teachers, but until recently, attendance was to raising money to help fight cancer. In 2013, the company poor. By improving conditions at the school, it has become a decided to establish a more structured programme that could more welcoming environment, a place where parents, teachers be followed over time and was more closely aligned with and students all feel at home. Jotun will continue to support the Jotun’s business objectives. The programme (called ‘Paint school and others over time, working with teachers to ensure tomorrow, today!’) provides exterior and interior paints, teacher more students have access to education and the tools they need sponsorships and other materials to improve conditions in to graduate. schools without adequate resources. The goal is to create a good environment that encourages better attendance, so more students learn to read and write.

‘Jotun’ the dog, in training at the NPA Global Training Centre.

RESPONSIBLE PURCHASING – LEADING FROM THE FRONT

58 Jotun takes its responsibility to society and the environment seriously. Our efforts to maintain responsible 59 purchasing practices help us ensure we exert a positive influence wherever we conduct business.

Jotun has high standards and expects its suppliers to meet in 2015, with the last module (Negotiations) scheduled to clear and stringent requirements. By doing so we help spread appear in the first half of 2016. responsible behaviour through the supply chain, encouraging improvement where needed, and supporting positive action The modules are – JOTUN AND SOCIETY throughout the network of companies we work with. Price 1. Introduction to purchasing JOTUN AND SOCIETY is important, but principles are paramount. If a firm does not 2. Category management raw materials comply with our minimum standards we will not do business 3. Indirect materials with it. 4. Negotiations 5. Operational purchasing TOOLS, POLICY AND PILLARS All participants in the training will take the first module, adding Jotun uses, and has developed, a series of tools to ensure additional modules to best fit their roles and the needs of the our suppliers respect Human Rights, support positive labour organisation. practices, and protect the environment. SUPPLIER AUDITS Key tools include – • The United Nations Global Compact – we aim to use Supplier audits are a way of ensuring our suppliers meet our suppliers that adhere to the principles of the UNGC responsible purchasing expectations, while helping those who • The Jotun Supplier Audit programme – All new suppliers are wish to raise their standards pinpoint and address areas of audited, with re-audits following on a regular basis potential improvement. • The Jotun Purchasing Policy – This defines our approach to purchasing, employee roles and responsibilities, processes, In 2015, we continued work on our new auditing app, anti-corruption principles, and how to treat suppliers in a suitable for both iOS and Android devices, which simplifies transparent and professional manner and empowers the supplier audit process, allowing better accessibility, less paperwork and a more powerful platform for In addition, we have three strategic purchasing goals that act using and sharing recorded data. as the pillars of our business, defining the way we work with all our suppliers. We focus on – In 2016 Jotun will launch version 2.0 of the app and continue • Ensuring continuity of supplies to support Jotun’s growth its roll out, training local purchasers in its use so they can take • Achieving the best terms in the market greater responsibility for their own audits. By eventually uniting • Ensuring value creation through mutually beneficial, long- the whole purchasing/auditing network on a single platform term relationships with suppliers we can drive better efficiency, results and understanding of captured data. REVITALISING TRAINING AUDITING BY THE NUMBERS In 2015, a central focus of the purchasing function has been the revamp of its Purchasing Academy. We have transformed In 2015 we conducted 54 audits, of which 21 were re-audits. the Academy from two training modules, to five, splitting the learning by discipline to allow for a ‘mix and match’ system and In 2016 we expect to conduct an equal number of supplier the building of expertise in specific fields most relevant to the audits, although there will be an increased focus on re-audits participants’ job scope. Four of the five modules were launched over the course of the year. UNITED ON ANTI-CORRUPTION

60 By equipping our people with behavioural training, clear guidelines and a robust reporting structure Jotun 61 protects its business, and its stakeholders, from the dangers of corruption.

Corruption is bad for business, society and global economic STRUCTURED APPROACH development. It inhibits fair competition, contributes to poverty and damages corporate reputation. Jotun is committed to In 2015, Jotun has focused on enhancing the structure of its fighting corruption in all its forms, while empowering its anti-corruption compliance programme. JOTUN AND SOCIETY workforce to speak-up if they are aware of any business JOTUN AND SOCIETY practices that go against our policies and principles. The company has – • Strengthened its commitment to, and investment in, anti- Employee engagement: Jotun builds awareness through the Penguin Spirit game in Cambodia. corruption activities PIONEERING STANDARDS • Worked across all territories and companies, against Business cultures vary from country to country, but Jotun’s a backdrop of increasing international anti-corruption standards do not. The company has a clear anti-corruption legislation, to ensure employees are adopting an policy that all its people and affiliated businesses are expected appropriately uniform and robust stance on the issue to adhere to. Furthermore, we endeavour to communicate • Acted to build its whistle blowing procedures, with the aim those standards to the companies we do business with, of increasing awareness, while enhancing our standing as a encouraging them to follow our lead and comply. This ‘ripple transparent and trustworthy business effect’ acts as a positive force of change in countries where • Introduced a new e-learning module standards may not be as stringent. • Strengthened the structure of the programme

The UNGC provides a framework for doing business in an ethical, responsible As a member of Transparency International Norway Jotun is committed to zero Jotun is committed to – In 2016 Jotun will – and sustainable manner. It focuses on four key areas – human rights, labour, the tolerance towards all forms of corruption and to work for the implementation environment and anti-corruption – and provides 10 principles within these headings of values, codes of conduct and anti-corruption programmes covering all of the • Complying with laws and regulations • Continue to invest in the creation of one multinational culture that help businesses deliver lasting benefits to people, communities and markets. organization.

• Supporting the UN Global Compact and Transparency where corrupt practices will not be tolerated The below table, referring to pages in this report, demonstrates how Jotun conducts International • Continue to build awareness and participation in Jotun’s business in a way that is clearly aligned to these principles. • Promoting an open and transparent business culture Penguin Spirit game, which allows employees to learn • Protecting whistleblowers important issues about anti-corruption, human rights, labour

and the environment in a fun, relaxed format HUMAN RIGHTS PAGES • Make training material available for the companies, as well AMBASSADORS FOR GOOD BUSINESS Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and 36-37, 40, 56, 57, 58, 60 as working to incorporate focused dilemma-based training in Principle 2: make sure that they are not complicit in human rights abuses. 40, 58 Every Jotun employee is an ambassador for the company. new companies and in geographical risk areas Their standards must therefore be aligned with ours. We • Introduce reporting and documentation initiatives around risk LABOUR

invest heavily in anti-corruption tools and training to achieve evaluation, whistle blowing cases and preventive actions. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to 36-37, 40, 58, 60 this goal, producing compliance manuals, conducting internal collective bargaining; udits of our anti-corruption initiatives, and ensuring that all Principle 4: the elimination of all forms of forced and compulsory labour; 36-37, 40, 58, 60 GLOBAL GOALS Principle 5: the effective abolition of child labour; and 36-37, 40, 57, 58, 60 new employees are trained in this issue as part of their Principle 6: the elimination of discrimination in respect of employment and occupation. 36-37, 40, 58, 60 induction process. Jotun works hand in hand with international organisations and standards to help guide its corporate responsibility policies ENVIRONMENT

For existing employees one of the most powerful tools we and practices. Our association with Transparency International Principle 7: Businesses should support a precautionary approach to environmental challenges; 12, 18, 20, 23, 24, 30, 33, 36, 43, 50-53, 58, 60, 64 have at our disposal is dilemma training. By presenting real-life helps to ensure we contribute towards their objective of Principle 8: undertake initiatives to promote greater environmental responsibility; and 12, 18, 20, 23, 24, 30, 33, 36, 43, 50-53, 58, 60, 64 scenarios to employees, and demonstrating how to handle fighting corruption, while through the United Nations Global Principle 9: encourage the development and diffusion of environmentally friendly technologies. 12, 18, 20, 23, 24, 30, 33, 36, 43, 50-53, 58, 60, 64 them, we equip them to make the right decisions in difficult Compact (UNGC) we take part in a long-term initiative to build ANTI-CORRUPTION business situations. a sustainable and inclusive global economy. Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. 36, 58, 60 This practical training is effective, efficient and memorable, For more information on the Global Compact see www.globalcompact.org helping staff ‘think on their feet’ while upholding our strict standards. 62 FINANCIAL INFO FINANCIAL INFO Chairman oftheBoard //64 Company overview//70 Financial info//65 Organisation //72

FINANCIAL INFO 63 64 FINANCIAL INFO In 2015,Jotuncelebrated thedeliveryof10000 This long-termperspectivealsoapplies toproduct development. growth for future generations. same boldandsmartdecisionstoday toensure thecompany’s opened itsfirstfactoryinDubai.Jotun’s ambitionistomake the in theMiddleEastdatebackto1975,whencompany early as1968.Likewise,theoriginsofJotun’s regional strength its roots inJotun’s bolddecisiontobuildafactoryinThailandas example, Jotun’s strong growth inSouthEast Asiathisyearhas our successtodaywere plantedbyprevious generations.For responsibility forJotun’s achievements.Infact,theseedsof the Board northemanagementteamcanclaimall While encouragedbythecompany’s growth in2015,neither A BOLDHISTORY Now celebratingits90 Terje Andersen,IngridLuberthandRichardArnesen. Board ofDirectors,fromleft:BirgerAmundsen,KarlOttoTveter, EinarAbrahamsen,NicolaiA.Eger, OddGleditschd.y. (Chairman), will beshapedbydecisionsmadetoday. Just asJotun’s successin2015owesmuchtowisedecisionsmadedecadesago, Jotun’s long-termfuture A LEGACYOFSUCCESS CHAIRMAN OFTHEBOARD,ODDGLEDITSCHD.Y. excellent performance. organisation tocontrol costs,have also contributedtoJotun’s underlying salesandvolumegrowth, andstepstakenbythe and lowerrawmaterialsprices,buttheBoard recognises that This year’s results were positivelyimpactedbycurrency effects and profits, achievinggrowth ineverysegmentand region. 2015, thecompanyachievedrecord-breaking sales,volumes coated bySeaQuantum, amarineantifoulingproduct th year, Jotunisstronger thanever. In th vessel vessel remains focusedonthelong-term developmentofthecompany. only asnapshotof ourprogress. Nowasinthepast,Board in thecontextofJotun’s 90-yearhistory, our2015results are The Board issatisfiedwiththecompany’s performance, butseen Jotun’s environmental performancetoday. decades agohelpedtostrengthen ourfocusonimproving storage anddisposalofchemicalsnearourfactoryinSandefjord while repairing environmental damagerelated to theimproper 1976 haskeptworkersafetyandfire prevention atoppriority, The company’s experiencewithacatastrophic fire inNorway products launchedbefore theyhadbeenadequatelytested. decisions, from imprudentacquisitionsorinvestments,to been developedandimplementedtoavoidpoorbusiness its mistakesassuccesses.Newsystemsandprocesses have asmuchfromIt shouldalsobenotedthatJotunhaslearned LESSONS FROMTHEPAST not chosentoinvestinthistechnology1969. player intheglobalpowdercoatingssegmenthadcompany in the1950s.Jotunmightnotberecognised asastrong market product thatevolvedfrom Jotun’s pioneering workinalkydresins of Scandinavia’s leadinginteriordecorative paint brands,isa maritime regulations. Lady, introduced in1983,remains one conceived more thantwentyyearsagoinresponse tonew Profit fortheyear Operating profit Depreciation, amortisationandimpairment Other operatingexpenses Payroll expenses Cost ofgoodssold Share ofprofit from associatedcompaniesandjointventures Operating revenue Total Non–controlling interests Equity holdersoftheparent company Total comprehensive incomeattributable to: Total comprehensive incomefortheyear Other comprehensive incomefortheyear, netoftax Currency translationdifference Loss onhedgeofnetinvestmentsinforeign operations Translation differences onnetinvestmentsinforeign operations Other comprehensive incometobereclassified toprofit orlossinsubsequentperiods: Actuarial gain/loss(–)ondefinedbenefitpensionplans Other comprehensive incomenottobereclassified toprofit orlossinsubsequentperiods: (NOK THOUSAND) CONSOLIDATED STATEMENT OFOTHERCOMPREHENSIVEINCOME Total Non–controlling interests Equity holdersoftheparent company Profit fortheyearattributableto: Profit fortheyear Income tax Profit before tax Net financialitems (NOK THOUSAND) CONSOLIDATED STATEMENT OFPROFITORLOSS FINANCIAL INFO

16 282314 –3 129834 –2 520743 –8 656661 1 416044 2 063972 1 754866 1 648330 1 754866 1 416044 1 338284 1 416044 1 918055 –473 118 –118 563 –502 011 –145 916 562 013 106 537 338 822 360 846 98 652 77 760 –2 113 2015 2014 2015 2014

13 170781 –2 566327 –2 191774 –7 118515 1 313588 1 779875 1 695833 1 779875 1 301423 –336 929 –120 010 –355 737 356 352 945 685 834 190 803 860 149 202 945 685 894 920 945 685 –12 166 84 042 50 765 1 137

FINANCIAL INFO 65 66 FINANCIAL INFO Odd Gleditschd.y. Richard Arnesen Total equityandliabilities Total liabilities Total current liabilities Other current liabilities Current taxpayable Trade andotherpayables Interest-bearing debt Current liabilities Total non-current liabilities Interest-free debt Interest-bearing debt Provisions Deferred taxliabilities Pension liabilities Non-current liabilities Total equity Non-controlling interests Other equity Share capital Equity EQUITY ANDLIABILITIES Total assets Total current assets Cash andcashequivalents Trade andotherreceivables Inventories Current assets Total non-current assets Other interest-bearing receivables Other investments Investments inassociatedcompaniesandjointventures Property, plantandequipment Other intangibleassets Deferred taxassets Non-current assets ASSETS (NOK THOUSAND) CONSOLIDATED STATEMENT OFFINANCIALPOSITION Chairman

Einar Abrahamsen Nicolai A.Eger Sandefjord, Norway, 9February2016 The Board ofDirectors BirgerAmundsen IngridLuberth JotunA/S Karl OttoTveter Terje Andersen 31.12.2015 31.12.2014 15 186501 15 186501 7 254003 4 605921 1 763731 1 702541 2 648082 2 323512 7 932497 7 620141 8 476382 1 520840 4 757059 2 198483 6 710119 1 839810 4 220218 185 275 954 374 214 012 209 757 102 600 165 557 312 000 164 287 31 858 32 539 46 161 8 248

President andCEO Morten Fon 13 299570 13 299570 6 560803 3 890468 1 269445 1 514783 2 670335 2 379037 6 738767 6 484811 7 426466 1 421 4 047524 1 957519 5 873104 1 491021 3 754514 159 397 946 843 193 164 151 356 102 600 202 855 281 508 134 957 23 934 42 006 32 194 8 248

Jotun Group hadunusedcredit facilitiesofNOK900millionat31December2015 (2014:NOK900million). Cash andcashequivalentsat31December Cash andcashequivalentsat1January Net increase /decrease (–)incashandequivalents Net currency translationeffect Net cashflowfrom financingactivities Dividends paidtonon–controlling interests Dividends paid Repayments ofborrowings Proceeds from borrowings Cash flowfrom financingactivities Net cashflowusedininvestingactivities Purchase ofintangibleassets Purchase ofproperty, plantandequipment Proceeds from salesofproperty, plantandequipment Cash flowfrom investingactivities Net cashflowfrom operatingactivities Tax payments Working capitaladjustments: Adjustments toreconcile profit before taxtonetcashflows: Profit before tax Cash flowfrom operatingactivities CONSOLIDATED STATEMENT OFCASHFLOWS (NOK THOUSAND) Change ininventories Change intradeandotherpayables Change intradeandotherreceivables Change inaccruals,provisions andother Depreciation, amortisationandimpairment Dividend paidfrom associatedcompaniesandjointventures Share ofprofit from associatedcompaniesandjointventures

1 520840 1 421 1 499769 1 918055 –601 206 –513 000 –295 434 –875 314 –856 858 –349 973 –242 651 –709 535 –562 013 255 365 187 758 293 375 473 118 491 634 –48 136 –65 293 23 250 76 169 46 837 2015 2014

1 289531 1 421 1 120161 1 301423 –513 000 –589 906 –897 044 –842 303 –293 336 –195 514 –783 764 –356 352 143 849 279 292 251 394 336 929 378 481 165 357 135 904 918 552 –42 775 –68 326 13 585

FINANCIAL INFO 67 68 FINANCIAL INFO (NOK THOUSAND) CONSOLIDATED STATEMENT OFCHANGESINEQUITY Equity at1January2014 Dividends Profit oftheperiod Other comprehensive income Equity at31December2014 Dividends Profit oftheperiod Other comprehensive income Equity at31December2015

ATTRIBUTABLE TOPARENT COMPANY EQUITYHOLDERS 102 600 102 600 102 600 capital Share

5 090499 5 502749 1 338284 6 306009 –513 000 –513 000 894 920 –22 024 30 329 equity Other Translation differences 1 314133 211 479 770 584 982 063 332 070

5 404578 6 587412 1 338284 7 722741 –513 000 –513 000 894 920 800 913 310 045 Total

controlling interests 110 090 151 356 209 757 –42 775 –48 136 50 765 33 277 77 760 28 777 Non–

Total equity 5 514667 6 738767 1 416044 7 932497 –555 775 –561 136 945 685 834 190 338 822 EXECUTIVE SUMMARY OFTHEFINANCIALSTATEMENT FOR2015 reported asnon-current assetsinthe balance sheet. amounts toNOK1840million(2014: NOK1491million),andis Jotun Group’s share oftotalequityinassociatesandjointventures in Brazil,Oman,MalaysiaandIndonesia. largest investmentsrelate toproduction facilitiesandbuildings producing Jotunbrandedproducts wasNOK1153million.The operating revenue. Total investmentinPP&Eforthepurposeof (NOK 911millionfor2014),representing sixpercentof intangible assetsamountedtoNOK922millionfor2015 Total purchase ofproperty, plantandequipment(PP&E) INVESTMENTS (2014: NOK12million). translation effects, netfinancialcostsendedatNOK146million for theyearhaveincreased from 2014mainlyduetocurrency increase ofNOK470millionfrom 2014.Netfinancingcharges The profit fortheyearamountedtoNOK1416million,an PROFIT FORTHEYEAR for theDecorativePaintssegmentinMiddleEast. North EastAsia,incombinationwithcontinuedgoodgrowth newbuilding orders withintheMarine Coatingssegmentin The increase ismainlyattributableto asharpincrease in reported onasinglelineoftheconsolidatedincomestatement. ventures totallingNOK562million (2014: NOK356million)are Jotun Group’s share ofnetresult aftertaxinassociatesandjoint operating expenses. premium products, andastrong focusoncontrolling growth in material prices,product mixmanagement withincreased sale of attributable tosolidsalesgrowth combinedwithreduced raw of 13percent(2014:10cent).Theprofit improvement is 2 064millioncompared to2014,yielding anoperatingmargin Operating profit in2015increased by57percenttoNOK OPERATING PROFIT exchange effects. 2015 thanin2014,butisalsoascribabletopositivecurrency growth, withallregions andsegmentsreporting highersalesin revenue increase of24percentisdrivenbydoubledigitvolume Operating revenue fortheGroup wasNOK16282million.The REVENUE by theEuropean Union(EU). AccountingStandardsInternational Board (IASB)andapproved Standards (IFRS)andinterpretations asadoptedbythe prepared inaccordance FinancialReporting withInternational The JotunGroup’s consolidatedfinancialstatementhasbeen statement basedonactualshareholding. the equitymethodandshare ofprofit reported intheincome while jointventures andassociatesare accountedforbasedon Subsidiaries are fullyconsolidatedindependentofshareholding, and sixassociatedcompaniesintheU.A.E.SaudiArabia. and 53subsidiaries,three jointventures inChinaandKorea The consolidatedfinancialstatementconsistsofJotunA/S GENERAL in total9842employeesatyearend 2015. Including employeesinjointventures andassociatesJotunhad its subsidiaries(2014:6644average full-timeequivalents). equivalents related toitson-goingbusinessinJotunA/Sand For 2015,JotunGroup hadonaverage6794full-time WORKFORCE non-current assetsofNOK875million. outflows related tobothdividendpaymentsandinvestmentsin 2015. Thenetcashflowfrom operatingactivitiesfundedcash an increase inworkingcapitalandhighertaxpaymentsduring higher dividendsreceived from associates,compensatingfor 2014 ismainlyduetoastronger pre-tax profit in2015and NOK 1500million(2014:919million).Theincrease from Operating activitiesin2015resulted inanetcashflowof CASH FLOW declared in2016. NOK 513millionwillnotberecognised inequityuntilfinally The proposed dividendforJotunA/S2015amountingto point from 2014toasolid52percent. NOK 561million.Theequityratiohasincreased onepercentage currency translationeffects, anddividendpaymentsofintotal comprehensive incomeofNOK339 millionmainlyrelating to net effect ofprofit fortheyearofNOK1416million,other to NOK7932million(2014:6739million)duethe Total equityincludingnon-controlling interests amounted SHAREHOLDER EQUITY line ofNOK100million,were allunused. At year-end thesecredit lines,inadditiontoashorttermcredit well asastrategicreserve forshort-term financingoftheGroup. committed fundingservesasabackstopforcertificateloans Jotun A/ShasNOK800millionoflongtermcredit lines.This short-term andthrough localbanks. borrowingoutstanding. External inthesubsidiariesisprimarily long term,andNOK1057millioninnon-current bankdebt NOK 1300millioninbonds,ofwhich000were the Norwegianbondmarket.Atyearend2015JotunA/Shad bilateral loansfrom theGroup’s relationship banksandloansin was 0.6(2014:1.0).TheGroup’s mainsource offinancingis operating profit before amortisationanddepreciation (EBITDA) 31 December2014,andnetinterest bearingdebtrelative tothe million atyearend2015compared toNOK1702millionasof The netinterest bearingdebtfortheGroup wasNOK1591 NET INTERESTBEARINGDEBT translation effects. the Group’s salesgrowth, inadditiontosignificantcurrency year. Theincrease istiedtogenerallyhigheractivityfollowing 31 December2015from NOK4490milliontheprevious Working capitalincreased toNOK5253millionasof WORKING CAPITAL

FINANCIAL INFO 69 LIBYA Jotun Libya J.S.Co., Tripoli 80 S

MALAYSIA Jotun (Malaysia) Sdn. Bhd., Shah Alam 100 P

Jotun Powder Coatings (M) Sdn. Bhd., Shah Alam 100 P

Jotun Paints (Malaysia) Sdn. Bdh., Nilai 100 P

MEXICO Jotun Mexico, S.A. de C.V. Veracruz 100 S

MOROCCO Jotun Maroc SARL/AU, C.V. Casablanca 100 S

MYANMAR Jotun Myanmar Company Ltd., Yangon 100 S

Jotun Myanmar Services Co. Ltd., Yangon 100 S

NETHERLANDS Jotun B.V., Spijkenisse 100 S

NORWAY Jotun A/S, Sandefjord 100 P

70 Scanox AS, Drammen 100 S 71

Sales office OMAN Jotun Paints Co. L.L.C., Muscat 62 P Production and sales PAKISTAN Jotun Pakistan (Pvt) Ltd., Lahore 100 P

Jotun Powder Coatings Pakistan (Pvt) Ltd., Lahore 98 P

PHILIPPINES Jotun (Philippines) Inc., Manila 100 S

COMPANY OVERVIEW COMPANY POLAND Jotun Polska Sp.zo.o., Gdynia 100 S OVERVIEW COMPANY

COUNTRY COMPANY SHARE HOLDING % ROMANIA Jotun Romania S.R.L., Otopeni 100 S

ALGERIA Jotun Algerie SARL, Algiers 70 S RUSSIAN FEDERATION Jotun Paints OOO, St. Petersburg 100 S

AUSTRALIA Jotun Australia Pty. Ltd., Victoria 100 P SAUDI ARABIA Jotun Powder Coatings Saudi Arabia Co. Ltd., Dammam 49 P

BANGLADESH Jotun Bangladesh Ltd., Dhaka 100 S Jotun Saudia Co. Ltd., Jeddah 40 P

BRAZIL Jotun Brasil Imp. Exp. & Industria de Tintas Ltda., Rio de Janeiro 100 P Red Sea Paints Co. Ltd., Jeddah 40 P

BULGARIA Jotun Bulgaria EOOD, Sofia 100 S SINGAPORE Jotun (Singapore) Pte. Ltd., Singapore 100 S

CAMBODIA Jotun (Cambodia) Ltd., Phnom Penh 100 S SOUTH AFRICA Jotun Paint South Africa (Pty) Ltd., Cape Town 100 P

CHINA Jotun Coatings (Zhangjiagang) Co. Ltd., Zhangjiagang 100 P SOUTH KOREA Chokwang Jotun Ltd., Kyungnam 50 P

Jotun COSCO Marine Coatings (HK) Co. Ltd., Hong Kong 50 S SPAIN Jotun Ibérica S.A., Barcelona 100 P

Jotun COSCO Marine Coatings (Qingdao) Co. Ltd., Qingdao 50 P SWEDEN Jotun Sverige AB, Gothenburg 100 S

Jotun Paints (H.K.) Ltd., Hong Kong 100 S THAILAND Jotun Thailand Ltd., Samutprakarn 95 P

CYPRUS Jotun Cyprus Ltd, Limassol 100 S TURKEY Jotun Boya San. ve Tic. A.S., Istanbul 100 P

CZECH REPUBLIC Jotun Powder Coatings (CZ) a.s., Usti nad Labem 100 P UNITED ARAB EMIRATES Jotun Abu Dhabi Ltd. (L.L.C.), Abu Dhabi 52 P

DENMARK Jotun Danmark A/S, Kolding 100 S Jotun Powder Coatings U.A.E. Ltd. (L.L.C.), Dubai 47 P

EGYPT El-Mohandes Jotun S.A.E., Cairo 70 P Jotun U.A.E. Ltd. (L.L.C.), Dubai 42 P

FRANCE Jotun France S.A.S., Paris 100 S UNITED KINGDOM Jotun Paints (Europe) Ltd., Flixborough 100 P

GERMANY Jotun (Deutschland) GmbH, Hamburg 100 S USA Jotun Paints Inc., Belle Chasse, LA 100 P

GREECE Jotun Hellas Ltd. Piraeus 100 S VIETNAM Jotun Paints (Vietnam) Co. Ltd., Ho Chi Minh City 100 P INDIA Jotun India Pvt. Ltd., Pune 100 P

INDONESIA P.T. Jotun Indonesia, Jakarta 99 P Decorative Paints Marine Coatings Protective Coatings Powder Coatings

P.T. Jotun Powder Coatings Indonesia, Jakarta 100 P P Production and sales S Sales office IRELAND Jotun (Ireland) Ltd., Cork 100 S In addition to the companies listed above, the Jotun Group also owns a number of holding and inactive companies. ITALY Jotun Italia S.p.A., Trieste 100 S In addition to legal companies Jotun has branch offices, agents, distributors and licensees in Andorra, Angola, Argentina, Austria, Azerbaijan, Bahamas, Bahrain, Belarus, Belgium, Belize, Bosnia & Herzegovina, Botswana, Brunei, Cameroon, Canada, Cape Verde, Chile, Colombia, Congo, Croatia, Cuba, KAZAKHSTAN Jotun Kazakhstan L.L.P. Almaty 100 S Domenican Republic, Ecuador, Estonia, Ethiopia, Fiji, Finland, Ghana, Guinea, Haiti, Hungary, Iceland, Irak, Iran, Israel, Japan, Jordan, Kuwait, Latvia, Lebanon, Lichtenstein, Lithuania, Luxembourg, Maldives, Malta, Mauritius, Monaco, Montenegro, Mozambique, Namibia, Nepal, Netherland Antilles, KENYA Jotun Kenya Ltd., Nairobi 100 S New Caledonia, New Zealand, Nigeria, Panama, Peru, Portugal, Puerto Rico, Qatar, Rwanda, Saint Vincent & The Grenadines, San Marino, Serbia, Slovakia, Slovenia, Solomon Islands, Sri Lanka, Sudan, Suriname, Switzerland, Syria, Tanzania, Taiwan, Trinidad, Tunisia, Uganda, Ukraine, Uruguay and Zambia. President & CEO Morten Fon

Group Functions CFO Vidar Nysæther

Decorative Paints Performance Coatings Bård K. Tonning Geir Bøe 72

Powder Marine Protective Ram Ramnath Alfie Ong Bjørn Wallentin ORGANISATION

Middle East, India & Africa North East Asia Esben Hersve Erik R. Aaberg

South East Asia & Pacific West Europe Martin Chew Kjell Gundersen

Scandinavia East Europe & Central Asia Stein Petter Lunde Sükru Ergün

Americas Idar Salvesen

BOARD OF DIRECTORS CORPORATE ASSEMBLY

Odd Gleditsch d.y., Chairman Anders A. Jahre, Chairman Einar Abrahamsen Richard Arnesen d.y. Birger Amundsen Terje V. Arnesen Terje Andersen Kornelia Eger Foyn-Bruun Richard Arnesen Anne Cecilie Gleditsch Nicolai A. Eger Bjørn Ole Gleditsch Ingrid Luberth Thomas Hammer Karl Otto Tveter Kai Roger Johansen Thomas Ljungqvist Kristian O. Smith Jens Bjørn Staff Espen Wiik

CREDITS

Copywriting: Alexander Wardwell and Alan Johnstone / Blue-C AS The paper used to print this report Design: Charlotte Jørgensen / Charlotte.no has the Nordic Eco-labeling - the Swan - Print: BK.no and is also approved by the PEFC Photo: Shutterstock.com (front cover, p. 32 and 62), cover inside Council (Programme for the Endorsement (Getty Images, Luth and Scanpix), iStockphoto.com (p. 6–7 and 22), of Forest Certifications schemes). Svein Brimi (p. 9, 38–39 , 54–55 and 57), NTB scanpix (p. 9 and 25), Morten Rakke Photography (p. 11, 31, 34–35, 37, 48–49, 56, 59 and 64), TDIC, Design: Ateliers Jean Nouvel (p. 18), ENI Norway (p. 26), Atle Møller (p. 41 and 46) and Jotun archive (p. 8–9, 13, 14, 17, 21, 28–29, 38–39, 42, 51 and 61). Jotun A/S P.O. Box 2021 3202 Sandefjord Norway jotun.com