International expansion INTSOK November 2016

Transcription

1 International expansion INTSOK November 2016

2 Jotun will protect its employees, its customers, its shareholders, the environment and all its property Example Steel: 5000 kg/s 40% of ALL steel production = replacement USD/yr 2

3 Jotun's history; 90 proud years of business 1926 Established by Odd Gleditsch sr s s s Domestic growth The pioneer years and consolidation Faster international expansion 2000 s Improving operations and accelerating growth Jotun 2016 / SBD-SS 3

4 Global Paint Market Jotun has 4.0% of target market and targets 75 bill USD market 130 bill USD GLOBAL MARKET JOTUN TARGETS OVER HALF GLOBAL COATING MARKET BY GEOGRAPHY 75 bill USD 50 bill USD Americas 26 % Asia 42 % 126 bill USD MEIA 10 % 44% 8% DECO POWDER 8% PROT 4% MARINE 10% 7% 6% 8% 3% 3% Metal Auto Wood Transp Coil Packaging Industrial Europe 22 % JOTUN* DECORATIVE POWDER PROTECTIVE MARINE 4% 2% 3% 8% 20% * Jotun has sales of around USD 2.8 bn and a 4% share of targeted market 4

5 Business segments 5

6 We are operating in distinctly different segments which require different business models DECORATIVE POWDER PROTECTIVE MARINE Jotun Jotun Jotun Jotun 2% 3% 8% 20% Others Others Others Others LOCAL GLOBAL 6

7 Jotun 2015 Larger, Distributed and growing! 22,5 billion NOK sales income 44 countries 37 factories 2% AM 9% WE 11% SCA 7% EECA 29% MEIA 25% NEA 17% SEAP Decorative Marine 36% 30% 24% employees Protective 762 million litres of paint sold % of total sales income Powder 10% 7

8 DOUBLE DIGIT REVENUE GROWTH STRONG GROWTH IN MARINE GOOD PROFITABILITY AT 13% (EBITA) NEW FACTORY OPENING IN KEY MARKETS 10% FASTEST GROWING(**) PAINT COMPANY IN THE WORLD DURING THE LAST 10 YEARS BLACK ABOVE RED 2015 A RECORD YEAR FAVOURABLE RM PRICES 13% VOLUME GROWTH GROWTH DESPITE DROP IN OIL SECTOR * All figures, 100%, NOK million, actual rates, YTD ** Amongst Top 15 P&C companies in terms of sale) 8

9 Jotun growth is organic, not fuelled by acquisitions 400 SALES GROWTH INDEX PPG ACQUIRES SIGMAKALON NIPPON NIPSEA MERGE PPG ACQUIRES COMEX Jotun demonstrates organic growth at the same speed or better than our peers 300 PPG ACQUIRES AKZO N-A DECO 250 AKZO ACQUIRES ICI Organic growth is superior in terms of controlling risks and costs 200 Organic growth enables Jotun to maintain existing culture

10 STRATEGY 10

11 Sales Jotun Group Continuity 4 SEGMENTS FOCUS ON DECORATIVE, PROTECTIVE, MARINE AND POWDER JOTUN GROWTH MODEL NEW FAST GROWING MATURE ORGANIG GROWTH ORGANIC GROWTH IN EXISTING AND NEW MARKETS Jotun Dubai Jotun Norway Jotun Turkey DIFFERENTIATED DIFFERENTIATED APPROACH PIPELINE Myanmar Time 11

12 Differentiation JOTUN S MARKET APPROACH IS DIFFERENTIATION ; A HIGH QUALITY SUPPLIER IN ALL ASPECTS. DISTINCT AREAS OF STRENGTH: a) Technology b) Service c) Support RECOGNISED BRANDS AND PEOPLE OFFER SOLUTIONS MORE THAN PRODUCTS CONCEPTS WILL BE KEY FOR GROWTH $ People Technology Support Service Value added 34 12

13 Strategic focus elements Examples of focus countries Countries: USA Brazil Spain Mature Europe Growth opportunities Early stages of development Evaluation of Business Model underway: Deco India Deco China (close to break even) Regions will establish firm plans for corrective initiatives Jotun 2016 / SBD-SS 13

14 Strategic focus elements Examples of new entries On-going activities: Bangladesh Myanmar Cambodia (completed but still early days) Philippines (expansion of existing entity) Kazakhstan (completed but still early days) Indications from Road Map-exercises: East Africa (Tanzania/Kenya) Mexico Colombia/Peru/(Chile) Azerbaijan Syria and Iran will be watched Jotun 2016 / SBD-SS 14

15 Example of market selection: Brazil since 1998 Segments Protective Oil&Gas + Infrastructure Powder Industrial development Indicator: GDP/capita Decorative Housing need, general dev. Jotun 2016 / SBD-SS 15

16 Group sales and EBITA (100%) 16

17 Conclusion & future; Growth will continue Jotun 2016 / SBD-SS 17

18 The importance of company culture Results Strategy People and leadership Values Jotun 2016 / SBD-SS 18

19 Thank you! Jotun 2016 / SBD-SS 19