Jotun Group
Jotun – A growth story ….in the paints and coatings industry Jotun Group Jotun today
Jotun – a global company…. …..with regional strongholds – Middle East, Asia and Scandinavia
• Total sales USD 2 billion* • EBIT margin 11.2% • 9th largest paint company in the world • 41 factories located on all continents • 70 companies in 40 countries • 7 800 employees • Head office in Sandefjord, Norway – 2 divisions managed from Dubai
* Consolidated figures Jotun Group
A story of growth….
Excellent people working in a unique corporate culture….. ….The Penguin Spirit
A long-term strategy that stays firm… ….Organic growth ….Multi-local vs global
Unique geographical footprint accelerates growth Jotun Group Jotun today
Decades of growth and profitability…… NOK million 14 000 1400
12 000 1200
10 000 1000
8 000 800
Net Sales EBIT
6 000 600
4 000 400
2 000 200
0 0 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Consolidated figures Jotun Group
Strong in selected segments and markets Global market - our segments Global market - our sales
Protective 10% Protective 20% Marine 5% Decorative Powder 36% 12%
Decorative Marine 73% Powder 33% 11% Market size : USD 80 billion Jotun sales : USD 2.4 billion
Decorative Powder Protective Marine Jotun Jotun Jotun 1.5% 4.0% 6.0% Jotun 20.0%
Others Others Others Others 98.5% 96.0% 94.0% 80.0% Jotun Group
Very strong positions in selected markets
Decorative Protective Marine Share Position Share Position Share Position UAE - Abu Dhabi 42% 1 50% 1 - - Saudi Arabia 15% 1 17% 3 17% 3 Egypt 10% 3 48% 1 50 % 1 Yemen 6% 3 55% 1 - - Syria 10% 4 - - - - Jordan 15% 3 - - - - Oman 52% 1 48% 1 - - UAE - Dubai 46% 1 37% 1 38% 2 Bahrain 32% 2 26% 2 40% 1 Kuwait 18% 2 16% 2 26% 3 Qatar 38% 1 9% 2 4% - Jotun Group
Strong growth and stable profitability
Annual volume growth % Manageable cost / Working capital %
16 39 14 37 12 35 10 33 8 31 6 29 27 4 25 2 2003 2004 2005 2006 2007 2008 2009 2010 0 2003 2004 2005 2006 2007 2008 2009 2010 Manageable cost Working capital
EBITA % ROCE %
14 35 12 30 10 25 8 20 6 15 4 10 2 5 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010 Jotun Group Jotun today
Ownership structure…. …..supports a long-term approach
• Approx 400 shareholders
• Gleditsch family holds 54% – 59% of votes – 68 family shareholders
• Orkla holds 42.5% – 38.2% of votes
• Prudent dividend policy
• Excellent cooperation between Orkla and Jotun Jotun Group The Penguin Spirit
Jotun Protects Property
Loyalty Care Respect Boldness Jotun Group
Our corporate culture is unique…. ….Penguin day Shanghai, Expo Main Hall Jotun Group Strategy
A simple strategy that stays firm
– The strategy is based on the present portfolio of businesses – Powder – Marine – Protective – Decorative
– Organic growth – Existing markets – New markets
– Differentiated approach – Multi-local Jotun Group Strategy
Decorative Paints develops in emerging markets
Strong in mature Scandinavia – Branded products – Fighting private labels – New manufacturing structure
Strong growth in selected markets – Jotun as the brand – Distribution of Multicolor tinting
Innovations Jotun Group Jotun Group Strategy
Protective Coatings is growing fast globally
Profitable growth in many markets
Adding new concepts – Oil & Gas – Energy
Selected markets are important
Global key accounts – Network
Innovations based on concept needs Jotun Group Strategy
Marine Coatings is a truly global business
Global delivery capabilities
Focus on profitability regardless of cycle
Demanding delivery structure
Few very important markets
Innovations consist of more than the coating Jotun Group Strategy
Powder Coatings offers growth opportunities
Industrialized products
Environment
Selected markets
Synergies with other segments Jotun Group Jotun facts
Growth characteristics – future opportunities
Volume performance per region Market ”logic”
300
250
200
150
100
50
0 Asia Middle East Scandinavia Rest of Rest of world Europe
2003 2010 Jotun Group
Organic growth in Indonesia
Sales Development (Bill IDR) History
700 600 1983 – Agent 500 1986 – Local production with partner 400 1996 - Est. Jotun Indonesia 300 - 2 factories 200 100 2000 – Decorative 0 2004 – New powder factory 2002 2003 2004 2005 2006 2007 2008 2009 2010 Est 11 2005 – New paints factory
No - Multicolor EBITA Success factors
450 100 400 350 80 • Long term – organic growth 300 60 250 • Corporate culture 200 40 • Multicolor 150 100 20 • Local production 50 0 0 • Early to market 2004 2005 2006 2007 2008 2009 2010 Est 11 2004 2005 2006 2007 2008 2009 2010 2011 -20 • Strong local organization • Regional support Jotun Group
Future growth…… …..is not limited by number of potential markets
• Russia • USA • North Africa • China • Brazil • South America • Bangladesh Jotun Group
A story of growth….
Excellent people working in a unique corporate culture….. ….The Penguin Spirit
A long-term strategy that stays firm… ….Organic growth ….Multi-local vs global
Unique geographical footprint accelerates growth Jotun Group