Group Presentation 2015 / Group Communications The Jotun Group Group Presentation 2015

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Group Presentation 2015Group Presentation 2015 / Group Communications The Jotun Group1 1926Established by Odd Gleditsch sr.1930-50sDomestic growth1960-70sThe pioneer years and consolidation1980-90sFaster international expansion2000sImproving operations and accelerating growth

Jotun's history 90 proud years of business

Group Presentation 2015 / Group CommunicationsThe Jotun Group Jotun todayNOK 17.5 billion in revenuesNo. 9 world wide33 factories located on all continentsMore than 9 600 employees world wideHQ in Sandefjord Hubs in Kuala Lumpur, Dubai and Shanghai4 Segments, 7 RegionsFamily controlled; long-term business approach

Group Presentation 2015 / Group CommunicationsThe Jotun Group

Jotun worldwide68 companies33 production facilitiesProducts available in more 90 countries

Group Presentation 2015 / Group Communications The Jotun GroupGroup sales and EBITA (100%)EBITANOK mill. From 2003 the sales and EBITA is according to IFRS. Before 2003 the figures are according to NGAAP. (EBITA is earning before interest, tax and amortisation)SalesNOK mill. Group Presentation 2015 / Group Communications The Jotun GroupOur segmentsSegments & Regions

Group Presentation 2015 / Group CommunicationsThe Jotun Group6

BrandsRetail solutionsProject marketDecorativeR&DR&DR&DR&DR&D

Growth through innovationsR&D Innovations Deco R&D-centers in UAE, Norway, Malaysia, India and ChinaHigh investments in R&D has created innovations like Lady Pure Colour, Lady Design, Drygolin Ultimat, Majestic True Beauty, Majestic Optima Airmaster and Jotashield ColourExtreme.Emerging marketsTwo main growth regions; Middle East/Africa/India + South East Asia/China

Group Presentation 2015 / Group CommunicationsThe Jotun Group Protective coatings innovation: Passive Fire ProtectionThe next generation epoxy passive fire protection for hydrocarbon fireJotachar JF 750 represents a new era of mesh free PFP solutions saving installation time, material costs and speeding up project completionJotachar JF 750 incorporates advanced technology eliminating the need for complex mesh reinforcements

Group Presentation 2015 / Group CommunicationsThe Jotun Group

Assembly presentation financial result/Year End 12/ Group Communication

POWDERCOATINGS

10% Group Presentation 2015 / Group CommunicationsThe Jotun Group9

Prestige projectsBurj Khalifa, DubaiEiffel Tower, ParisBurj al Arab, DubaiCanton Tower, GuangzhouHolmenkollen Ski Jump, OsloMarina Bay Sands, SingaporeOasis of the Seas, Florida

Projects Group Presentation 2015 / Group CommunicationsThe Jotun Group10The only paint company which can provide a single source solution to a building./.

AREAS OF EXPERTISE

Steel Corrosion Protection Concrete Protection Thermal insulation Decorative Exterior / Interior Paint Systems Intumescent Passive Fire Protection Coatings Industrial Floor Coatings Powder Coatings

Single Source Solution

Group Presentation 2015 / Group CommunicationsThe Jotun GroupSingle Source Sollution tilbyr det som trengs av beskyttelse fra 3 segmenter I en pakke.

People & Penguin SpiritGlobal 90% outside Norway Ethnic and cultural diversity 82 nationalitiesBuild loyalty and long term relations - make new employees penguinsDevelop competence and people

Penguin SpiritJotun at China's 2010 World Expo Group Presentation 2015 / Group CommunicationsThe Jotun Group12

Corporate ResponsibilityJotun shall conduct business operations in accordance with sound values and business principles in the interest of customers, employees, owners, the environment and the society at largeCorporate ResponsibilityLoyaltyCareRespectBoldness Group Presentation 2015 / Group CommunicationsThe Jotun GroupOur basic values

Not newDeveloped right from the very start 1926, through the history Reflect partlyhow it ishow it has been, how we want to be perceived, how we want to develop

The decision on the four value wordsWorkshops and discussions in group management Leadership programme projects and Various other workshops both with internal and external facilitatorsCome down on these 4 value words

Jotun GreenSteps - focus areas Reduction of solvent/VOC emissionsReduction/substitution of hazardous materialsReduction of energy consumptionReduction of carbon footprintReduction of waste

Corporate Responsibility

Group Presentation 2015 / Group CommunicationsThe Jotun GroupProtective Coatings global experience, local presence Advanced coatings for industrial and offshore Projects Product categories: Intumescent, topcoat, anticorrosive

Major protective brands: Jotachar, Penguard, Jotamastic, Hardtop, MarathonSingle Source Solution with decorative and powder coatings

Team No. 1/Technical sales support Areas of Activity: ProtectiveEnergyOffshoreHPIInfrastructure

Group Presentation 2015 / Group CommunicationsThe Jotun Group

JOTUN HPI CONCEPTHow to reduce Oil & Gas facilities maintenance costs Group Presentation 2015 / Group CommunicationsThe Jotun Group16Jotun HPI ConceptAlmost 30 years experience in HPI industry

Millions of square meters protected and hundreds of projects completed

Constant development of coatings to meet every HPI challengeLonger protectionReducing downtimeGetting the facility back in service fasterDifferentiate on specialist areas etc. Group Presentation 2015 / Group CommunicationsThe Jotun Group17

The REAL needs and value of protective coatings:ASSET Performance & Life Cycle Costs (LCC)Coatings hugely impact asset performance and LCC, while accounting for a fraction of costs. 18 Group Presentation 2015 / Group CommunicationsThe Jotun GroupFormula: The Value of Coatings if a function of Asset Performance and LCC vs. the Coating Costs (minor in asset context)18Purposes of Maintenance (Coatings)+ Operational Efficiency Keep the plant going

Group Presentation 2015 / Group CommunicationsThe Jotun GroupMaintenance coatings is the recoating of any existing coated substrate surface to prevent corrosion or to maintain appearance.

The basic purposes of a coating maintenance program:Prevent significant metal loss (consider estimated metalwork replacement costs with the estimated costs of a maintenance coating program)Safety for public and workersMaintain aesthetics / appearance of structures exposed to public viewIdentify by color code (ex: sometimes the client decides to color the pipes to specific colors to make it easier to identify what product is transported through them)Minimize future repair costs All of the above ultimately amounts to operational efficiency, thus, keeping the plant going and operational at all times. Considering one day of shutdown of a refinery can cost around 4 to 5 million USD.19ConclusionPlan all Work and understand ExpectationsChoose When to carry out works and Surface PreparationBudget and Safety consideredCarry out as much live line as possibleSafety firstDuring Turnaround Plan to be quickOne coat systems specified properlyMake use of fast solutions where possibleOperational Efficiency CAN pay for your maintenance Group Presentation 2015 / Group CommunicationsThe Jotun Group2nd largest in the Middle East with 81 mil people (12 Mil in Tehran). Largest natural gas supplier!

Need for 1 mil new apartments/houses per year. 21 mil families today, expected to reach 28 mil next 15 years

Marine, Protective and Powder coating huge potential

Paints market - 400 mill USD, per capital consumption 5 USD (2,5-3 liter);

350 local paint producers registered; fast growing market, for many years to come

Iran a great opportunity for Jotun growth

Group Presentation 2015 / Group CommunicationsThe Jotun GroupSources

Upper middle income - http://data.worldbank.org/country/iran-islamic-republicPopulation, literacy Pwc incdicators

21Jotun is present in Iran for the past 15 years through a distributor Represented in 12 most populated cities with one or more Multicolor Centres

18 MC Centres in Iran, celebration for 20 MC Centres later this year

Protective, Marine and Powder team are ready to start

Group Presentation 2015 / Group CommunicationsThe Jotun GroupIran 90 Mil people waiting for Jotun

When sanctions are lifted, great opportunities for Jotun in Iran. The Jotun Penguins in Iran are ready for the growth!

Group Presentation 2015 / Group CommunicationsThe Jotun GroupJotun Plan Iran is important and on top list for developmentLong term plan Jotun would invest in factory in Iran

Short term

Finalize feasibility study

Establish Jotun Iran

Develop and increase resources to support growth

Work closely with our distribution to grow fasterWe need to develop a plan for each segment Group Presentation 2015 / Group CommunicationsThe Jotun Group

Group Presentation 2015 / Group CommunicationsThe Jotun Group25