Loyalty Care Respect Boldness

Transcription

1 Jotun Presentation

2 Link to video

3 Loyalty Care Respect Boldness

4 Jotun Today Sales 15.8 NOK billion 14% SCA Employees EBITA 1.8 NOK billion 10% WE 9% EECA 19% NEA +100 Countries EBITA margin 11% 2% AM 24% MEIA 22% SEAP 67 Companies ROCE 21% 37 Factories

5 Our Business Areas 38% 25% Decorative paints Marine coatings 27% 10% Protective coatings Powder coatings

6 A story of growth Sales and EBIT NOK million, Yearly Net Sales EBIT

7 100% figures vs Jotun Group reported figures Companies where Jotun hold 50% or less are not represented in Group Figures Revenue bridge NOK million, actual rates and growth % -0.5% % Jotun 100% MEIA NEA Group sales to JV/AV Other income Jotun Group

8 Ownership structure Approx. 680 shareholders Gleditsch family holds 54 % 59 % of votes Orkla holds 42,5 % 38,2 % of votes Historically careful dividend policy Good cooperation between Orkla and the Gleditsch family

9 Corporate responsibility has high focus Values Compliance manual Business principles Leadership expectations Jotun decision making model Dilemma training Jotun Green Steps Audit of suppliers Project standards

10 Jotun Group Sales slightly down after a outstanding 2015 Operating Revenue NOK million, actual rates, Year End Sales Growth A few things to be aware of: 24% Lower intercompany sales Jotun Cosco, China 9% 6% 6% 9% Other income included in operating revenue impacted by Egypt currency loss -3% Group Finance Financial Statements 2016

11 Jotun Group EBITA slightly down EBITA & EBITA margin NOK million, actual rates Sales EBIT% 30% % 20% Second best result ever % 9.9 % 10.4 % 10.0 % 12.7 % 11.2 % 15% 10% 5% Claims Equity ratio strong and further improved 53 % (2015: 52%) % 11 Group Finance Financial Statements 2016

12 Excluding currency effects: Record sales in Deco and Powder Sales per segment (100%-basis) NOK million, fixed rates Powder Deco Average growth (CAGR) 7.3% Protective % Marine % 8.1% Total 9.3%

13 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Raw material trend Consolidated raw material price Indexed numbers, weighted average RM prices Forecast Consolidated Corporate Marine Protective Decorative Decorative (SCA) Powder Note 1: The Weighted average All is based on all RMs in the scope of the report Note 2: Re-purchase prices indexed based on purchased currency converted to USD

14 Maintaining the investment targets Investments per year NOK million, actual rates, % of sales Investments per region 2016 NOK million, actual rates AM; NEA; 90 WE; % 6.8% 5.4% 5.9% EECA; 91 SCA; 129 MEIA; 427 CORP; 181 SEAP;

15 Maintaining the investment targets Investments year-end NOK million, actual rates, % of sales Production facilities Oman Philippines Myanmar Malaysia (Powder) Thailand (Warehouse) 6.1 % 6.8 % 5.4 % 5.9 % R&D Product development Labs: UK, Korea, India, Gimle Admin buildings Vindal and Gimle in Norway Mumbai office in India

16 Investing for future growth New Factories: Completed 2016: Brazil Oman Under construction: Myanmar Started in 2016: Philippines and Malaysia (Powder) Prospects: Egypt And: New R&D Centre and Group headquarters in Sandefjord

17 New HQ and R&D centre in Sandefjord, Norway Started before summer - completed early 2019 Investment NOK 1.1 billion m2 People 2019: 250 in HQ and 300 in R&D Capacity for growth

18 Investments and net debt development (Jotun Group, actual rates) Equity ratio Jotun Group NOK Million at year end Invested in factories and working capital Accumulated Net debt (accumulated)

19 Solid financial position Equity ratio Jotun Group At year end Net debt/ebitda Jotun Group At year end Covenant: > 25% Target: > 50% Covenant: Below 4.0 Target: Maintain IG rating 57% 56% 54% 51% 51% 52% 53%

20 Debt and Financing Structure Long term debt is held by Jotun A/S Companies receive long term funding from Jotun A/S Companies have local short term bank lines Jotun A/S repatriates cash through dividends and royalty payments from companies Dividend to shareholders evaluated each year in light of capital needs and solidity target Jotun A/S has the last 4 years paid NOK 513 mill in yearly dividends

21 Dividend policy. Jotun Group. Dividend payments vs Profit NOK Million at year end Profit for the year Dividend 1416 Same equity last 5 years Maintain equity ratio above 50%

22 Debt funding - Jotun A/S Loans per September 2016 Maturity Loan type Amount (MNOK) May 2019 Bond 400 May 2021 Bond 300 Jan 2024 NIB loan* 1057 Sum 2357 *Nordic Investment Bank, USD 120 mill, USD rate 8,36

23 Available credit lines - Jotun A/S Long term Credit facilities per September 2016 Maturity Bank Amount (MNOK) August 2019 SEB January 2021 DNB 400 3,5 Total 800 Years to maturity

24 Financing needs going forward Organic growth expected to continue Financing needed for investments and working capital Mostly financed by internal cash surplus, but moderate debt increase is expected given present dividend level New R&D facilities and offices in Sandefjord will require financing in 2017/2018 NOK mill investment approved Norwegian bond market as primary funding source

25 Summary Jotun develops steady and as planned Some headwinds in Marine and Offshore markets Still a lot of opportunities in other segments Good cash flow and robust balance sheet