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2%AM

10%WE

14%SCA

9%EECA

19%NEA

22%SEAP24%

MEIA

Sales15.8NOK billion

EBITA1.8NOK billion

EBITA margin11%

ROCE21%

+100Countries

37Factories

9 819Employees

67Companies

Jotun Today

Decorative paints

Protective coatings Powder coatings

Marine coatings

38%

10%27%

25%

Our Business Areas

0

500

1000

1500

2000

2500

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

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

20

12

20

14

20

16

Net Sales EBIT

Sales and EBIT

NOK million, Yearly

A story of growth…

22 407

15 785

4 681

3 2151 087 187

Jotun 100% MEIA NEA Group sales toJV/AV

Other income Jotun Group

-0.5%

NOK million, actual rates and growth %

Revenue bridge

-3%

100% figures vs Jotun Group reported figuresCompanies where Jotun hold 50% or less are not represented in Group Figures

• 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

Ownership structure

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 | Group Finance | Financial Statements 2016

Jotun Group

Operating Revenue

NOK million, actual rates, Year End

Sales slightly down after a outstanding 2015

10 659 11 351 12 034 13 171 16 282 15 785

9%6% 6%

9%

24%

-3%

2011 2012 2013 2014 2015 2016

Sales Growth

A few things to be aware of:

• Lower intercompany sales– Jotun Cosco, China

• Other income includedin operating revenue impactedby Egypt currency loss

11 | Group Finance | Financial Statements 2016

Jotun Group

690 1 126 1 257 1 314 2 064 1763

6.5 %

9.9 % 10.4 % 10.0 %

12.7 %11.2 %

0%

5%

10%

15%

20%

25%

30%

0

500

1 000

1 500

2 000

2 500

2 011 2012 2013 2014 2015 2016

Sales EBIT%

EBITA slightly down

NOK million, actual rates

EBITA & EBITA margin

• Second best result ever

• Claims

• Equity ratio strong and furtherimproved 53 % (2015: 52%)

Excluding currency effects:

Record sales in Deco and Powder

NOK million, fixed rates

Sales per segment (100%-basis)

Average growth (CAGR)

7.3%

9.9%

10.9%

8.1%

Total 9.3%3 037

6 0972 108

5 362

3 722

8 697

1 194

2 250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Powder

Deco

Protective

Marine

Indexed numbers, weighted average RM prices

Raw material trend – 2008-2016

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

Forecast

70

90

110

130

150

170

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

Consolidated Corporate Marine Protective Decorative Decorative (SCA) Powder

Consolidated raw material price

Maintaining the investment targets

985

1 201 1 209

1 332

6.1% 6.8%

5.4%

5.9%

2013 2014 2015 2016

Investments per year

NOK million, actual rates, % of sales

Investments per region 2016

NOK million, actual rates

MEIA; 427

SEAP; 306

CORP; 181

SCA; 129

EECA; 91

NEA; 90 WE; 81

AM; 26

Maintaining the investment targets

985

1 201 1 209

1 332

6.1 % 6.8 %

5.4 %

5.9 %

2013 2014 2015 2016

Investments year-end

NOK million, actual rates, % of sales

R&D• Product development• Labs: UK, Korea, India, Gimle

Production facilities• Oman• Philippines• Myanmar• Malaysia (Powder)• Thailand

(Warehouse)

Admin buildings• Vindal and Gimle in Norway• Mumbai office in India

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

Started before summer - completed early 2019

Investment NOK 1.1 billion – 34.000m2

People 2019: 250 in HQ and 300 in R&D

Capacity for growth

New HQ and R&D centre in Sandefjord, Norway

Investments and net debt development (Jotun Group, actual rates)

4391 336

1 919 2 235

4 265 3 956

5 208

7 1077 576

8 990

11 452

13 90614 374

-18

213 351 121 261 195 -167 4291 220 1 193 1 602

2 1081 667

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Invested in factories and working capital Accumulated Net debt (accumulated)

Equity ratio – Jotun Group

NOK Million at year end

Solid financial position

Covenant: > 25%Target: > 50% Covenant: Below 4.0

Target: Maintain IG rating

57% 56%54%

51% 51% 52% 53%

2010 2011 2012 2013 2014 2015 2016

Equity ratio – Jotun Group

At year end

-0.1

0.6 0.6

0.8

1

0.60.7

2010 2011 2012 2013 2014 2015 2016

Net debt/EBITDA – Jotun Group

At year end

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

Dividend policy. Jotun Group.

• Same equitylast 5 years

• Maintain equityratio above50%

634

795857

946

1416

1132

513 513 513 513 513 513

2011 2012 2013 2014 2015 2016

Profit for the year Dividend

Dividend payments vs Profit

NOK Million at year end

Debt funding - Jotun A/S

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

Loans per September 2016

Available credit lines - Jotun A/S

Long term Credit facilities per September 2016

Maturity Bank Amount (MNOK)

Years to maturity

August 2019 SEB 400 2

January 2021 DNB 400 3,5

Total 800

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 1 100 mill investment approved

• Norwegian bond market as primary funding source

• Jotun develops steady and asplanned

• Some headwinds in Marine andOffshore markets

• Still a lot of opportunities in othersegments

• Good cash flow and robust balancesheet

Summary