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.