Jotun Group

Jotun – A growth story….in the paints and coatings industry

Jotun Group

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

Jotun today

* 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

Decades of growth and profitability……NOK million

Consolidated figures0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

Net Sales

0

200

400

600

800

1000

1200

1400

EBIT

Jotun today

Jotun Group

Strong in selected segments and marketsGlobal market - our segments

Protective10%

Marine5%

Powder12%

Decorative73%

Market size : USD 80 billion

Global market - our sales

Marine33%Powder

11%

Protective20%

Decorative36%

Jotun sales : USD 2.4 billion

Jotun1.5%

Others98.5%

Jotun6.0%

Others94.0%

Jotun4.0%

Others96.0%

Jotun20.0%

Others80.0%

Decorative Powder Protective Marine

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

02468

10121416

2003 2004 2005 2006 2007 2008 2009 2010

Annual volume growth %

2527293133353739

2003 2004 2005 2006 2007 2008 2009 2010

Manageable cost Working capital

Manageable cost / Working capital %

0

2

4

68

10

12

14

2003 2004 2005 2006 2007 2008 2009 20100

5

10

1520

25

30

35

2003 2004 2005 2006 2007 2008 2009 2010

EBITA % ROCE %

Jotun Group

Ownership structure….…..supports a long-term approach

Jotun today

• 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

Jotun Protects Property

Loyalty Care Respect Boldness

The Penguin Spirit

Jotun Group

Our corporate culture is unique….….Penguin day Shanghai, Expo Main Hall

Jotun Group

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

Strategy

Jotun Group

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

Strategy

Jotun Group

Jotun Group

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

Strategy

Jotun Group

Marine Coatings is a truly global business

Strategy

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

Powder Coatings offers growth opportunities

Industrialized products

Environment

Selected markets

Synergies with other segments

Strategy

Jotun Group

Growth characteristics – future opportunities

0

50

100

150

200

250

300

Asia Middle East Scandinavia Rest ofEurope

Rest of world

2003 2010

Jotun facts

Volume performance per region Market ”logic”

Jotun Group

0

100

200

300400

500

600

700

2002 2003 2004 2005 2006 2007 2008 2009 2010 Est 11

050

100150200250300350400450

2004 2005 2006 2007 2008 2009 2010 2011

Organic growth in IndonesiaSales Development (Bill IDR) History

1983 – Agent1986 – Local production with partner1996 - Est. Jotun Indonesia

- 2 factories2000 – Decorative2004 – New powder factory2005 – New paints factory

Success factors

• Long term – organic growth• Corporate culture • Multicolor• Local production• Early to market• Strong local organization• Regional support

No - Multicolor

-20

0

20

40

60

80

100

2004 2005 2006 2007 2008 2009 2010 Est 11

EBITA

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