Annual 
report 
2022

Our Values
Reliable and trustworthy
Long-term relationships between 
customers, Jotun and colleagues
Commitment to Jotun’s values, 
strategies, policies and decisions
Loyalty
Help and support others
Display trust and empathy
Appraise and judge fairly
Protect internal and external 
environment
Care
Value differences in people
Be honest and fair
Build diverse teams across 
culture and gender
Follow laws and regulations
Treat others the way they expect 
to be treated
Respect

Take initiatives to create the 
future
Initiate and nurture change
Communicate openly, honestly 
and with integrity
Be proactive
Address difficulties 
constructively
Boldness
Contents
INTRODUCTION
Group key figures 
02
Jotun at a glance
04
Four segments
05
Building on a history of care and respect
06
BOARD OF DIRECTORS
Chairman of the Board
08
Directors’ report
09
JOTUN GROUP
Consolidated income statement
16
Consolidated statement of comprehensive income
16
Consolidated statement of financial position
17
Consolidated statement of changes in equity
18
Consolidated statement of cash flows
18
Notes for the Group
19
JOTUN A/S
Income statement
52
Statement of comprehensive income
52
Statement of financial position
52
Statement of changes in equity
53 
Statement of cash flows
53
Notes for the Parent Company
55
AUDITOR’S REPORT
68
BOARD OF DIRECTORS AND CORPORATE ASSEMBLY
70

Group key figures
Profitability 
22.5   % 
	
Return on capital employed 16.1   %  
	
Return on equity
13.4   %  
	
Operating margin
Sales and EBITA development 
(NOK MILLION)
0
500
1000
1500
2000
2500
3000
3500
4000
 0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
1972
1977
1982
1987
1992
1997
2002
2007
2012
2017
2022
EBITA
Sales
5 %
10 %
15 %
20 %
25 %
30 %
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2    Jotun Annual Report 2022    Introduction 
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(NOK million)
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Profit/loss
Operating revenue
27 858
 22 809 
 21 070 
 19 652 
 17 660 
 16 401 
 15 785 
 16 282 
 13 171 
 12 034 
Sales revenue outside Norway, in %
92
 90 
 89 
 89 
 88 
 88 
 88 
 88 
 85 
 83 
Operating profit
3 737
 3 138 
 3 489 
 2 320 
 1 361 
 1 354 
 1 763 
 2 064 
 1 314 
 1 258 
Profit before tax
3 191
 2 890 
 3 158 
 2 079 
 1 115 
 1 236 
 1 594 
 1 918 
 1 301 
 1 191 
Net cash flow from operating activities
1 809
 1 968 
 3 272 
 2 448 
 1 018 
 1 097 
 2 027 
 1 500 
 919 
 819 
Year-end financial positions
Total assets
26 355
 23 432 
 20 574 
 19 136 
 16 715 
 15 708 
 15 158 
 15 187 
 13 300 
 10 799 
Investments in intangible and fixed assets
1 280
 1 363 
 1 407 
 1 464 
 1 089 
 967 
 1 133 
 922 
 911 
 733 
Total equity
14 493
 12 468 
 11 128 
 9 584 
 8 469 
 8 254 
 8 035 
 7 932 
 6 739 
 5 515 
Equity / assets ratio, in %
55.0
 53.2 
 54.1 
 50.1 
 50.7 
 52.5 
 53.0 
 52.2 
 50.7 
 51.1 
Number of employees in the Group including
100 % in associates and joint ventures
10 043
 10 293 
 9 855 
 10 007 
 9 872 
 9 789 
 9 819 
 9 842 
 9 676 
 8 991 
Profitability
Return on capital employed, in % 
22.5
 21.7 
 27.2 
 18.7 
 12.2 
 12.8 
 17.9 
 20.9 
 15.1 
 17.9 
Return on equity, in % 
16.1
 17.9 
 23.0 
 17.2 
 8.1 
 9.8 
 14.1 
 17.9 
 14.0 
 15.5 
Operating margin, in % 
13.4
 13.8 
 16.6 
 11.8 
 7.7 
 8.3 
 11.2 
 12.7 
 10.0 
 10.5 
Group key figures
Introduction    Jotun Annual Report 2022    3
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The Jotun Group is a matrix 
organisation with sales of 
Decorative Paints and Marine, 
Protective and Powder Coatings 
organised into six regions.
The company has 40 production 
facilities in 23 countries, with 67 
companies in 46 countries, and 
is represented in more than 100 
countries worldwide.
100  +
Countries
40
Factories
10 043
Employees
Jotun at a glance
EECA
WESCA
NEA
SEAP
AM
Americas
West Europe
and
Scandinavia
East Europe and 
Central Asia
Middle East, India 
and Africa
North East
Asia
South East Asia 
and Paciﬁc
MEIA
Group functions
CFO
Vidar Nysæther
Decorative Paints
Bård K. Tonning
Performance Coatings
Martin Chew
NEA
Ferran Bueno
EECA
Sükru Ergün
AM
Stein Kjølberg
Powder
Stein Petter Lunde
MEIA
Esben Hersve
SEAP
Korkut Kulbul
WESCA
Jon Bigseth
Marine & Protective
Tunç Kazancıoğlu
President & CEO
Morten Fon
4    Jotun Annual Report 2022    Introduction 
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* Incl. 100 % of sales in associates and joint ventures 
Four segments
MARINE COATINGS 27 % 
Jotun is the market leader in 
marine coatings, delivering 
high performance hull 
performance solutions, and 
high quality coatings for 
newbuilds, drydockings, onboard 
maintenance, cargo tanks 
and cargo holds to the global 
shipping industry. Jotun also 
supplies premium coatings to 
mega yachts and leisure yachts.
PROTECTIVE COATINGS 27 % 
Jotun is a leading supplier of high 
quality protective coatings for on- 
and offshore oil and gas facilities, 
power generation, renewable energy 
and infrastructure projects,  including 
intumescent coatings, topcoats, high 
temperature coatings and state-
of-the-art, proven anticorrosion 
protection products.
POWDER COATINGS 8 % 
Jotun Powder Coatings is a 
leading supplier to companies 
active in industries related to 
building components, general 
industries, pipelines, appliances 
and furniture. 
DECORATIVE PAINTS 38 %
Jotun Decorative is a leading paint 
supplier to commercial buildings, 
public buildings and homes, serving 
both professionals and home owners, 
directly and through a substantial 
network of Jotun Multicolor centres.
2
7
 
%
 
 
2
7
 
%
 
8
 
%
3
8
 
%
Total sales* 
per segment
Introduction    Jotun Annual Report 2022    5
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1926: Odd Gleditsch Sr.  
establishes Jotun A/S with 
the purchase of the Jotun 
Kemiske Fabrik A/S (Jotun 
Chemical Factory).
1939: Jotun establishes 
a pension fund for 
employees.  
1940-1945: Despite 
challenging market 
conditions during World 
War II, the company 
retains all staff at Jotun’s 
factory in Sandefjord. 
When the factory was 
idle due to lack of raw 
materials, Gleditsch 
offers work on his farm at 
full pay.
1962: Jotun establishes 
its first local production 
outside Norway, in Tripoli, 
Libya. 
1968: Jotun partners 
with Norwegian 
entrepreneur Gunnar 
Myhre to pioneer the 
development of solvent-
free powder coatings.
1972: Jotun establishes 
an internal environmental 
protection committee 
to study styrene 
vaporisation.
1976: Jotun launches 
the industry’s first 
automated, computerised 
in-shop tinting machine, 
hence reducing waste 
and the transportation of 
finished goods.
1983: Jotun launches 
Lady, a long-lasting, 
high quality waterborne 
interior paint.
1980s: Jotun establishes 
relationship with Red 
Cross Norway and the 
Red Cross Red Crescent 
Movement. Over the 
years, Jotun has provided 
support for victims 
of natural disasters, 
diseases and conflicts. 
1992: Jotun enters a 
joint research project 
with the Norwegian 
energy giant Statoil 
(Equinor) to develop its 
first product Life Cycle 
Assessment to document 
the environmental impact 
of long-lasting coating 
systems throughout 
the lifetime of offshore 
assets.
1996: Jotun contributes 
to a pilot project to 
develop ISO 14001, 
a standard related 
to environmental 
management issued 
by the International 
Standards Organisation.
1998: Jotun establishes 
a Global Health, Safety 
and Environmental (HSE) 
Standard.
Jotun’s business principles are grounded in the company’s four 
values (Loyalty, Care, Respect and Boldness), which are linked to 
Jotun’s ESG performance. As a leading global provider of quality, 
long-lasting paints and coatings, Jotun can contribute to the 
environment and society by building on a long and proud history 
of taking care of people and the environment.
Building on a history 
of care and respect
6    Jotun Annual Report 2022    Introduction 
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2000: Jotun launches 
SeaQuantum, a self-
polishing TBT-free 
antifouling. 
2008: Jotun launches 
SENS, an interior 
decorative paint 
developed in response 
to consumer health 
concerns.  
2009: Jotun launches 
Jotashield Extreme, a 
heat reflective exterior 
paint and Cool Shades 
(2010), a heat-reflective 
powder coating for 
architectural elements.
2010: Jotun establishes 
Jotun GreenSteps to 
improve the environ­
mental footprint. 
2011: Jotun launches Hull 
Performance Solutions 
(HPS) to improve hull 
performance and 
thereby reduce fuel costs 
and greenhouse gas 
emissions. 
2014: Jotun introduces 
the I Care programme, 
an internal campaign to 
raise HSEQ awareness to 
improve worker safety 
and reduce the risk of 
fires and spills.
2015: Jotun launches 
Green Buildings 
Solutions, which makes it 
easier to design, specify 
and protect “green 
buildings”.
2014: Jotun launches 
Lady Balance to the 
Scandinavian market 
which offers a beautiful 
matt finish with minimal 
odour, certified by 
Eurofins Indoor Air 
Comfort Gold.
2015: Jotun sponsors its 
first mine detection dog 
in cooperation with the 
NGO Norwegian People’s 
Aid, to clear landmines 
and other remnants of 
war in former conflict 
zones.
2019: Jotun launches 
Fenomastic Wonderwall 
Life in the Middle East 
region. The first UL 
GreenGuard Gold 
certified paint product 
in the region. A long-
lasting interior paint 
that has ultra-low VOC, 
a barely detectable 
odour and improves 
indoor air quality with its 
formaldehyde abatement 
technology.
2020: Jotun launches 
Jotacote Universal S120, 
the industry’s first 
solvent free, single coat 
universal primer.
2020: Jotun introduces 
revolutionary Hull 
Skating Solutions (HSS), 
which provides an 
always-clean hull for 
the most challenging 
operations. A clean hull 
significantly reduces fuel 
costs, greenhouse gas 
emissions and the spread 
of invasive species.
2022: Jotun introduces 
the Penguin CARE 
programme to provide 
support for employees 
raising families or caring 
for unwell or aging 
relatives.
2022: Jotun launches 
HullKeeper as a 
unique programme 
enabling optimised hull 
performance, regardless 
of the applied coating.
2022: Jotun Performance 
Coatings launches a 
sustainability roadmap 
as a structured approach 
to prove and scientifically 
document the impact 
of Jotun products and 
solutions throughout the 
lifetime of assets. 
2022: Jotun sets clear 
and ambitious goals to 
reduce the total carbon 
footprint by 50 per cent 
and achieve 70 per cent 
of the company’s energy 
needs from renewable 
sources by 2030.
2022: Jotun commits 
to increasing female 
representation in 
managerial positions to 
30 per cent worldwide 
and to 40 per cent at 
Jotun’s headquarters by 
2030.
2022: Jotun launches 
Majestic Sense, a 
premium low-odour 
interior paint in South 
East Asia. Majestic 
Sense includes Clean 
Air Technology, an 
independently tested 
innovation which can 
neutralise more than 90 
per cent of formaldehyde 
emissions. Majestic 
Sense has been listed 
as a “Sensitive Choice ® 
product by the National 
Asthma Council Australia.
Introduction    Jotun Annual Report 2022    7
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In a year characterised by market uncertainties, Jotun’s strong performance is 
a credit to the quality of the organisation and the company’s history of timely 
investments in people and assets. 
A winning formula
Supply chain disruptions caused by the war in 
Ukraine, combined with markets still affected by the 
pandemic, caused high prices for transportation, 
energy and raw materials, which had a negative 
impact on Jotun’s profits. Nevertheless, Jotun 
managed to record steady increases in earnings 
and sales volume, helping the company to achieve 
another year of profitable growth. The Board 
acknowledges the extraordinary efforts of Jotun’s 
personnel, many of whom worked under challenging 
circumstances, for their contributions to another 
successful year.
Long-term investments 
Jotun’s decisive action to manage prices early in the 
year to help offset rising raw material costs and the 
skilful management of challenges in local markets 
played a critical role in Jotun’s growth in 2022. 
However, the foundation of Jotun’s success has been 
built over decades through timely investments in our 
workforce and production capacity. For example, 
Jotun’s bold decision to build factories in emerging 
markets in the 1960s, 1970s and 1980s helped 
the company establish itself in some high-growth 
markets at an early stage. Today, Jotun is a leading 
regional player in South East Asia, the Middle East, 
Eastern Europe (Türkiye), Scandinavia and, in some 
segments, North East Asia. Likewise, Jotun’s long-
term investments in recruiting and competence 
development have not only helped the company 
retain skilled workers but have also created a strong 
leadership pipeline.
This investment strategy continues today. Over 
the past five years, Jotun has financed projects to 
increase our Research & Development capabilities 
and production capacity, including three 
factories completed this year (Qatar, Pakistan and 
Bangladesh). The Board also approved a framework 
agreement with Emerson, a global provider of 
industrial automation software and technology, 
to standardise processes in Jotun’s factories, 
worldwide. To attract and retain skilled personnel, 
Jotun has invested in innovative  e-learning tools and 
introduced new policies that provide enhanced social 
benefits for employees.
Delivering sustainable growth
As a global company, Jotun remains sensitive to 
market trends and will take appropriate action 
to defend profitability. However, as a privately 
controlled company, Jotun has the luxury of taking 
a long-term perspective. The Board recognises that 
decisions taken today may not pay off immediately, 
but remains confident that the company‘s core 
strategy.
Board of Directors, from left: Jannicke Nilsson, Per Kristian Aagaard, Terje Andersen, Odd Gleditsch d.y. (Chairman), 
Nicolai A. Eger, Camilla Hagen Sørli, Bjørg Engevik Nilsen and Einar Abrahamsen.  
Jotun has embarked on an ambitious sustainability journey 
during which we will evaluate the value chain, up and down, 
in search of opportunities to improve our impact on the 
environment and the societies in which we operate.
CHAIRMAN OF THE BOARD
Odd Gleditsch d.y.
8    Jotun Annual Report 2022    Board of Directors
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Directors’ report
In 2022, Jotun posted record sales and earnings, despite shocks to 
the global economy. The company’s strong performance in a year 
characterised by rising inflation, high raw materials prices and increased 
costs related to the transportation and production of paints and coatings is 
a credit to Jotun’s ability to react quickly to changing circumstances. While 
the war in Ukraine forced the sale of Jotun’s company in Russia, The Board 
notes that the company celebrated the opening of three new factories 
(Qatar, Pakistan, Bangladesh) and R&D centre in Dubai. The Board remains 
committed to Jotun’s long-term strategy and will continue to evaluate 
further investments in support of Jotun’s growth ambitions.  
1. MAIN ACTIVITIES 
Jotun’s business activities include the development, production, marketing 
and sale of paints and coatings systems and related products and services 
for the treatment, protection and beautification of surfaces. 
Jotun is a global company made up of 67 companies in 46 countries, 
including 40 production facilities. The company extends its reach to other 
countries through a network of subsidiaries, joint ventures, associated 
companies, sales offices and distributors. The parent company, Jotun A/S, 
is headquartered in Sandefjord, Norway. Of the Group’s operating revenue, 
approximately 10 per cent is related to its activities in Norway, while 90 per 
cent is related to the rest of the global network. 
Jotun’s business is organised into six regions: West Europe and Scandinavia 
(WESCA), East Europe and Central Asia (EECA), Middle East, India and 
Africa (MEIA), North East Asia (NEA), South East Asia and Pacific (SEAP) and 
Americas (AM). 
Jotun’s product and service offerings are organised into two units: 
Decorative Paints and Performance Coatings. 
Decorative Paints
Jotun supplies interior and exterior decorative paints to commercial real 
estate projects, public infrastructure projects (such as airports, stadiums, 
hospitals, housing developments, etc.) and homeowners, either directly or 
indirectly through the company’s global network of dealers. 
Performance Coatings 
Jotun is the market leader in marine coatings, delivering high performance 
hull performance solutions, and high quality coatings for newbuilds, 
drydockings, onboard maintenance, cargo tanks and cargo holds to the 
global shipping industry. Jotun also supplies premium coatings to mega 
yachts and leisure yachts.
Jotun is a leading supplier of high quality protective coatings for on- and 
offshore oil and gas facilities, power generation, renewable energy and 
infrastructure projects, including intumescent coatings, topcoats, high 
temperature coatings and state-of-the-art, proven anticorrosion protection 
products.
Jotun Powder Coatings is a leading supplier of powder coatings to 
companies active in industries related to building components, general 
industries, pipelines, appliances and furniture.
2. REVIEW OF THE ANNUAL ACCOUNTS
In 2022, the Jotun Group recorded total operating revenue of NOK 27 858 
million, which is an increase of 22 per cent compared to 2021 (NOK 22 809 
million). Excluding positive currency translation effects, mainly due to a 
weaker Norwegian krone, underlying revenue growth was 21 per cent.
While Jotun achieved record sales and earnings, the war in Ukraine, 
combined with the lingering effects of the pandemic, kept transportation 
costs and raw material prices high, impacting Jotun’s gross margins. 
Nevertheless, Jotun recorded strong sales growth in the Decorative Paints 
segment and the Marine and Protective Coatings segments. Earnings in 
the Powder Coatings segment did not meet expectations, but the segment 
did record positive sales growth despite the closure of Jotun’s business in 
Russia, previously an important market for Jotun.
Profits
The Group achieved an operating profit of NOK 3 737 million in 2022 
compared to NOK 3 138 million in 2021. Growth in operating profits were 
supported by higher sales volume, price increases and measures to control 
operating costs. 
Net financial costs increased by NOK 298 million to NOK 546 million, mainly 
driven by higher interest costs and currency losses. This resulted in a profit 
before tax of NOK 3 191 compared to NOK 2 890 million in 2021. Jotun’s 
activities are subject to ordinary company tax in the countries in which the 
Group operates, and income tax amounted to NOK 1 024 million in 2022. 
This led to a profit for the year of NOK 2 167 million compared to ­
NOK 2 111 million in 2021.
The parent company, Jotun A/S, achieved a total profit for the year of NOK 
1 702 million in 2022, compared to NOK 1 241 million in 2021. 
Allocation of profit for the year:
Jotun A/S posted a profit for the year of NOK 1 702 million. 
The Board of Directors proposes the following allocation: 
Proposed dividend	
NOK 855 million
Transfer to equity	
NOK 847 million
Financial position, capital structure and risk
Net cash flow from operating activities decreased by NOK 126 million to 
NOK 1 842 million, as higher earnings were offset by a strong increase in 
Board of Directors    Jotun Annual Report 2022    9
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working capital. The growth in operating working capital is primarily due to 
a significant increase in customer receivables, driven by the Group’s strong 
sales growth. In addition, high raw material prices led to an increase in 
inventory values, which also contributed to the rise in working capital.
At year-end, the Group had a positive cash position of NOK 3 312 million 
compared to NOK 3 388 million as of 31 December 2021. 
The Group continued to invest in production capacity and R&D facilities
in 2022, with total investments amounting to NOK 1 280 million compared 
to NOK 1 363 million in 2021. Investments have mainly been related 
to investments in new production facilities in Egypt and Indonesia, 
construction of a new regional headquarter and R&D centre in Dubai and 
facility upgrades in Norway. In 2022, Jotun opened new factories in Qatar, 
Pakistan and Bangladesh.
The net interest-bearing debt for the Group was NOK 1 690 million as of 
31 December 2022, compared to NOK 1 807 million as of 31 December 
2021. The decrease in net interest-bearing debt is primarily driven by a 
modest decrease in external debt. At year-end, Jotun A/S had NOK 1 900 
million in outstanding bonds, of which NOK 600 million was short-term. In 
addition, Jotun A/S had NOK 272 million in bank debt outstanding, of which 
NOK 181 million was short-term. External borrowing in the subsidiaries is 
primarily short-term and through local banks.
Jotun A/S has NOK 1 915 million in long-term credit lines and NOK 600 
million in short-term credit lines. This committed funding serves as a 
strategic reserve for financing of the Group as well as a backstop for short-
term certificate loans. At year- end, these credit lines were unused.
The Group’s equity ratio was 55 per cent at the end of the year compared 
to 53 per cent in 2021. The Group is in a sound financial position.
In its regular business operations, Jotun is exposed to financial risks 
relating to customer credit and fluctuations in raw material prices, 
currency exchange rates, and interest rates. Procedures and guidelines 
for managing these risks are established in the Jotun’s Treasury Policy. The 
Group primarily manages financial risks through their normal operations. 
For example, Jotun can increase prices, to compensate for higher raw 
material costs and utilise credit management systems to reduce credit risk.
In addition, Jotun A/S hedges currency risk related to net cash flows in 
foreign currencies using forward contracts, options, and foreign currency 
loans. Currency risk related to the parent company’s net investments in 
subsidiaries, associates, and joint ventures, is generally not hedged. Jotun’s 
procedures and measures are considered satisfactory in relation to the 
Group’s exposure to financial risks.
In accordance with section 3-3a of the Norwegian Accounting Act, the 
Board confirms that the Group fulfils the requirements necessary to 
operate as a going concern, and that the 2022 financial statements have 
been prepared on the basis of this assumption.
3. THE MARKETS 
Decorative Paints 
Jotun achieved good sales growth and profitability in the Decorative 
Paints segment in 2022, driven by an especially strong performance in the 
Middle East and South East Asia. Jotun also performed well in Türkiye and 
gained market share in the small but profitable premium market segment 
in China. In Europe and Scandinavia, the conflict in Ukraine contributed 
to rising inflation and supply chain disruptions, impacting consumer 
confidence and slowing growth in the project market.
In 2022, Jotun celebrated the installation of its 10 000th Jotun Multicolor 
machine, which took place in a shop in Hanoi, Vietnam. While Jotun will 
continue to expand its distribution network in all markets, the company 
is also focused on upgrading existing shops to create a better shopping 
experience for homeowners. Jotun also worked to provide enhanced 
support for dealers through such initiatives as the Jotun Dealer Profitability 
Programme and the Jotun Way, a training programme for shop staff.
Jotun’s regional R&D centres continue to play an important role in Jotun’s 
success in all regions. For example, Jotun launched two premium interior 
paints in the Middle East and South East Asia. Both are matte paints that 
are very low odour, easy to clean and help purifying indoor air qualities, 
but also include features engineered to meet local demand and climate 
conditions. As in years past, these product launches were supported by the 
launch of the Global Colour Card Collection, an annual event that helps to 
position Jotun as a global trendsetter in colour design. 
Protective Coatings
Following a pause in industrial development in many regions last year, 
high-profile maintenance and construction activity resumed in 2022, 
resulting in double-digit sales growth for Jotun Protective Coatings. Jotun 
achieved excellent results in Scandinavia, West Europe and the Middle East, 
and performed well in South East Asia and North East Asia. The company 
was also encouraged by positive results derived from its global distribution 
network, which now exceeds 1 000 dealers worldwide. 
Jotun’s ability to provide quality products, valuable specification support 
and excellent technical service has helped the company become 
a preferred supplier to a number of highly complex, large-scale 
infrastructure, oil and gas and energy projects. At the same time, demand 
for Jotun’s growing portfolio of specialised products that help to manage 
fire risk, avoid negative environmental impacts or potential health risks to 
applicators, has put the company in a strong position to compete for high-
profile projects. 
Jotun recognises that growing regulatory pressure on project owners 
and industry to decarbonise is likely to play a larger role in the company’s 
offering going forward. For example, growing investments in renewable 
energy, notably wind energy, has created fresh opportunities for Jotun. 
With raw material prices expected to ease in 2023, growth in this segment 
is expected to accelerate in the years ahead. 
Marine Coatings
Following a period of uncertainty related to the pandemic over the past 
three years, the shipping industry made a strong recovery, driven by rising 
global trade volumes and high freight rates. At the same time, increasingly 
strict global and regional environmental regulations encouraged owners 
and shipmanagers to invest in high-performance hull coatings to reduce 
emissions. 
Jotun is in a strong position to benefit from these trends. In addition to 
launching innovative products, Jotun continued to invest in and develop 
data-driven services based on the company’s extensive database on hull 
performance. For example, Jotun launched HullKeeper, a service that 
helps customers improve performance through hull monitoring, fouling 
risk alerts, inspections and advisory services. Other data-driven services 
include Jotun Hull Performance Solutions (HPS), which helps owners reduce 
10    Jotun Annual Report 2022    Board of Directors
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and verify both fuel costs and greenhouse gas emissions; Jotun Voyager, a 
decision support tool helping customers select the right hull coatings for 
individual trades and Jotun Hull Skating Solutions, a system that utilises 
advanced robotics (HullSkater) to achieve proactive hull cleaning. 
Profitability in the Marine Coatings segment was negatively impacted by 
high raw materials prices, costs related supply chain disruption, and the 
closure of Jotun’s operations in Russia, where Jotun was a market leader. 
However, Jotun’s continued success in the newbuilding, drydock and 
seastock markets helped achieve good results, especially in China, South 
Korea, West Europe and Scandinavia. 
 
Powder Coatings
Due to a series of external events, results for Jotun Powder Coatings 
fell short of expectations in 2022. The closure of Jotun’s business in 
Russia contributed to declining volumes, while high raw materials 
prices, especially for epoxies and polyester resins, impacted profitability. 
While Jotun moved quickly to implement price increases to support the 
business, other macro-economic factors, such as increased energy and 
transportation costs, rising inflation and interest rates and the lingering 
effects of the coronavirus pandemic in some markets conspired to slow 
growth. Nevertheless, Jotun increased sales in key markets notably in India, 
Türkiye and China.
Jotun remains committed to its long-term strategy, based on premium 
products, excellent technical service and a focus on innovation, especially 
within low-cure metallic solutions. In addition to launching two premium 
products for building components, Jotun’s product offering for Electric 
Vehicle (EV) battery packages and other components helped Jotun increase 
sales in China. 
In Norway, Jotun completed construction of an industrial powder coatings 
line to develop and test low-cure powder coatings in cooperation with 
customers. Advances in low-cure solutions will enable customers to save 
on energy costs, increase efficiency and allow them to protect and beautify 
different substrates, including natural and engineered wood. 
4. RESEARCH AND DEVELOPMENT 
Headquartered in Sandefjord, Norway, Jotun’s R&D function includes 
a global network of regional laboratories in the UK, Türkiye Malaysia, 
Thailand, Dubai, India, South Korea, China and USA. These laboratories 
focus on regional product development, adapting or customising existing 
products, the testing of raw materials, quality assurance, and providing 
claims and verification services when required. 
Jotun’s state-of-the art R&D centre in Sandefjord, Norway, is made up of 
offices and workstations for up to 350 chemists and support staff. The 
construction of a new R&D centre in Dubai was completed in 2022, and the 
project for building a new regional R&D centre in Malaysia will start up in 
2023.
Over the past five years, Jotun chemists have increasingly focused on 
meeting growing demand for healthier, more environmentally responsible 
paints and coatings, engineered to meet new or pending regulations. For 
example, Jotun has developed a new water-based, solvent-free system for 
windmill blades, including fillers, primers, topcoats, and a new leading-
edge protection. Jotun has also developed the industry’s first solvent-free 
steel primer to help shipyards comply with stricter limits on the use of 
VOCs. To help owners and real estate developers add value to buildings, 
Jotun has developed solvent-free steel protection products and ultra-low 
VOC interior paint systems, supported by the necessary documentation, to 
help them win points for “green building” certification.
 
By investing in facilities, personnel and new technologies, Jotun will be 
in a stronger position to support customers working to meet regulatory 
challenges and achieve their business objectives. 
5. SUSTAINABILITY (ESG)
In 2020, Jotun formally declared its commitment to UN Sustainability 
Goals. Jotun’s sustainability strategy sets clear targets to improve the 
company’s environmental and social performance, supported by robust 
governance policies that are consistent with its core values (Loyalty, Care, 
Respect, Boldness). Jotun has classified sustainability into three categories: 
Environmental, Social and Governance (ESG). 
6. ESG - ENVIRONMENTAL
Jotun‘s goal is to reduce the footprint of the company’s operations and 
develop sustainable products and solutions that help customers both 
comply with regulations and achieve their environmental targets. Jotun’s 
holistic approach seeks to minimise the environmental impact across 
the value chain, from sourcing raw materials and manufacturing, to 
distribution, and the use, reuse, and recycling of products and materials. 
Jotun GreenSteps
Since 2010, Jotun GreenSteps has served as the company’s environmental 
framework to track, document and improve Jotun’s environmental 
performance. While mainly focusing on its own operations, Jotun 
GreenSteps now includes activities throughout the value chain, from 
supplier relationships (upstream) to customer relationships (downstream) – 
areas where Jotun can have its greatest impact.
“The Value Chain Model”
To implement Jotun’s approach to environmental sustainability, Jotun has 
developed the “The Value Chain Model”, a systematic framework that 
allows the company to understand and document the impact of products 
and solutions throughout the value chain and lifetime of the protected 
asset. The model covers selection of raw materials and product innovation 
(Input), impacts of Jotun production (Operations) and how Jotun products 
are used, applied, recycled and reused (Usage). 
In 2022, Jotun included a new element in the The Value Chain Model; 
“avoided emissions”, which refers to how the use of Jotun products impact 
customer emissions. For example, by offering antifoulings that reduce 
drag on a ship’s hull or anticorrosive steel protection products that prolong 
the lifetime of an asset, Jotun can support customer efforts to reduce 
emissions related to fuel consumption or the production of replacement 
of steel. By documenting and sharing data on products and solutions 
that can contribute to avoid emissions, Jotun can support customers’ 
sustainability goals while also reducing downstream impacts. 
Documentation
To track performance, Jotun’s Value Chain Model uses environmental data 
gathered from multiple sources and standardised tools used to measure 
and share information of environmental impacts of Jotun activities. 
Board of Directors    Jotun Annual Report 2022    11
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In addition to internal tracking tools, Jotun conducts Life Cycle 
Assessments (LCAs) to prepare Environmental Product Declarations 
(EPDs) that help Jotun and its customers to make decisions that influence 
environmental performance. Jotun’s EPDs are independently verified by 
the Norwegian Institute for Sustainability Research (Norsus). By the end 
of 2022, Jotun had produced more than 350 EPDs. Jotun is also preparing 
extended EPDs, covering the whole value chain, including distribution, 
application, maintenance, end of life, and recycling potential. 
Carbon footprint report
Since 2010, Jotun has collected data from its global operations to produce 
an annual carbon footprint report, which covers both direct and indirect 
emissions. The report uses standards established by the Greenhouse Gas 
Protocol Initiative, allowing Jotun to measure emissions related to Jotun’s 
activities (scope 1, 2). With access to this standardised data, Jotun is in a 
better position to reduce its carbon emissions. In 2022, Jotun launched an 
initiative to establish a baseline and start building competence to measure 
scope 3 emissions. 
INPUT: Materials, services and innovation
Jotun works to ensure that products are designed and documented in 
line with regulations and the company’s sustainability goals. To improve 
performance, Jotun’s Research and Development (R&D) works closely 
with the purchasing function during the product development process to 
source and use raw materials responsibly. 
Jotun identifies and works to eliminate potentially hazardous chemicals 
found in Jotun products within the framework of the company’s Chemical 
Policy, which is updated every year. Jotun’s Chemical Policy ensures that use 
of certain chemicals and substances that may represent a risk to health 
and the environment are avoided or restricted. Further, Jotun push to 
select raw materials with reduced environmental footprint and continues 
to research the use of recycled or biobased raw materials. 
OPERATIONS: Manufacturing and distribution 
For more than a decade, Jotun has tracked carbon emissions, the 
use of solvents and waste in each of its 40 factories worldwide. Jotun 
has introduced a broad range of policies and systems to improve its 
performance over multiple categories.
Emissions from energy consumption represents Jotun’s most 
consequential contribution to the company’s carbon footprint. In 2022, 
Jotun set a target to reduce its carbon footprint from operations by 50 per 
cent to 2030, with the baseline established in 2017. To achieve this goal, 
Jotun has taken action to source more energy from renewable resources. 
For example, Jotun has invested in solar panels in Malaysia, Oman and 
Vietnam. Jotun is also seeking to reduce energy consumption through 
improved efficiencies. For example, in 2022, Jotun launched an initiative 
to reduce air compressor leakages, a significant contributor to Jotun’s 
emissions. In 2023, Jotun will work to optimise water cooling processes.
Jotun has developed procedures and systems to ensure that sustainability 
becomes a natural part of all maintenance investments or newbuilding 
projects. These (and other) initiatives related to carbon emissions are 
implemented through Jotun’s HSEQ Management System. The HSEQ 
Management System allows Jotun to set clear targets, communicate 
improve­ment initiatives and track results over time. 
Transportation 
External transportation suppliers play an important role in Jotun’s supply 
chain logistics operations. To help lower emissions, all Jotun companies are 
encouraged to select sustainable and low-carbon suppliers, where available. 
For example, in 2022, Jotun Norway showcased the company’s first electric 
truck, operated by Schenker. 
Achieved results
In 2022, Jotun recorded emissions of 91 505 tons CO2-equivalent, keep­
ing the carbon footprint stable since 2021 despite a five per cent volume 
increase. The total electrical consumption in 2022 was 120 KWh per tonnes 
produced compared to 135 Kwh in 2021. This result is mainly due to 
increased use of renewable energy (24 per cent) and successful ongoing 
energy efficiency programmes in operations. 
USAGE: Use, reuse and recycle
Jotun recognises how the company uses, reuses or recycles materials have a 
significant impact on its environmental performance. Many GreenSteps initia­
tives have been initiated to reduce, reuse and recycle waste, such as ­plastics, 
plastics and process water. For example, by purchasing raw materials in 
­reusable Intermediate Bulk Containers (IBCs) or delivering raw materials into 
closed loop systems, Jotun can avoid packaging waste and the risk of spills.
Jotun works with customers and applicators to manage the efficient 
preparation of surfaces, application and maintenance, and provides 
information to consumers and professionals on how to properly handle 
and recycle waste. In 2022, Jotun Norway exercised its purchasing power 
to encourage suppliers to include “post-consumer” plastics in its decorative 
paint cans. 
Waste generated per tonne produced was stable from 2021 to 2022, at 
19.3 kg per tonne produced (19.4 in 2021). 
7. ESG - SOCIAL 
Jotun’s approach to social issues is grounded in its corporate values 
(Loyalty, Care, Respect and Boldness) and the company’s Business 
Principles. Internally, Jotun seeks to create a safe, diverse and inclusive 
workplace where people can thrive. Externally Jotun aims to make a 
positive impact through active engagement with customers, suppliers, and 
with global or local organisations and charitable groups in communities 
where it operates. 
Investing in people
Jotun’s ambition is to create healthy workplace environments, offer fair 
salaries and equal opportunities to all employee groups. This allows 
the company to meet existing and future business needs and helps the 
organisation attract, develop and retain skilled workers. In 2022, Jotun’s 
workforce consisted of 10 043 employees. 
HR Management 
All Jotun employees have access to Jotun’s Human Resources 
Management System (HRMS). The HRMS supports HR processes in 
all aspects of employee lifecycle, from recruitment and performance 
management to training, compensation and benefits. In 2022, Jotun 
launched the Job Catalogue, which consists of around 500 unique job 
profiles describing the purpose and responsibilities of every position in 
Jotun. This feature provides employees access to information on what is 
required for the different jobs so that they can more easily visualise and 
pursue their career path. 
12    Jotun Annual Report 2022    Board of Directors
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Diversity and Inclusion 
Jotun recognises the importance of having a diverse and inclusive 
workforce. By building a culture of belonging and creating a welcoming 
workplace, Jotun can foster innovation and encourage collaboration. Jotun 
seeks to attract and develop talents across the organisation and respect 
and appreciate differences to create good working environments. 
Jotun also seeks to attract top talents from diverse hiring pools. While Jotun 
recognises that managers face different challenges in local labour markets, 
all Jotun companies are required to make conscious efforts to ensure that 
their workforce mirrors the societies in which they operate. In 2022, Jotun 
committed to increasing female representation in managerial positions to 
30 per cent worldwide (22 per cent 2022) and to 40 per cent (38 per cent 
2022) at Jotun’s headquarters by 2030.
All Jotun companies are required to report on diversity initiatives twice 
a year. By the end of next year, all Jotun managers will have received 
“Inclusive Hiring” training to achieve improved inclusive recruitment and 
promotion processes.
Tracking diversity 
Jotun measures performance through the “Diversity and Inclusion Index” 
in the Employee Engagement Survey, where any discrepancies can 
be identified and corrected. The company measures gender balance, 
generational representation, and ethnic and cultural diversity, expressed by 
national representation. 
Information about Jotun’s Diversity and Inclusion initiative, status 
and progress, as well as a special report related to promoting equal 
opportunity and the prevention of discrimination in Jotun A/S (Norway), is 
found on https://www.jotun.com/th-en/about-jotun/sustainability/social/
diversity-in-action.
Support for families 
In 2022, Jotun launched the “Penguin CARE Programme”, which provides 
Jotun employees improved access to family support. In addition to 
receiving benefits mandated by local law, new mothers will receive eight 
additional weeks of fully paid leave, paid for by Jotun, capped at a total of 
24 weeks. The policy also entitles new fathers with a minimum of 10 fully 
paid working days of paternity leave. It is also an internal requirement 
to establish multipurpose rooms, which provide a safe space for all 
employees to rest, including new mothers, who are also entitled to reduced 
working hours if returning to work while still nursing a child. The Penguin 
CARE Programme also entitles employees caring for sick, injured or elderly 
relatives a minimum of five fully paid days per year of caregiver leave.
Global mobility
Jotun’s Global Mobility programmes allow Jotun to rotate and transfer 
employees safely, legally, and effectively between Jotun companies and 
countries. These programmes allow employees to gain cross-functional, 
cross-segment and cross-border experience. Mobility programmes include 
both short and long-term assignments and provide employees with the 
infrastructure, support and benefits, including support for the partners 
of employees on overseas assignments. In 2022, 175 employees were on 
short or long-term mobility assignments. 
Learning and development of employees
Jotun has organised its approach to Learning and Development into 
three areas: “Jotun Academy”, “People and Teams” and “Innovation and 
Technology”. Jotun Academy is Jotun’s primary learning platform, offering 
43 offering training courses organised into 11 portfolios that touch on 
every aspect of Jotun’s business. To accelerate the development employees 
and teams, Jotun introduced new learning platforms, leadership boosters, 
and leadership and team development workshops.
Jotun has invested in equipment and partnered with experts to develop 
new tools for training and employee development, such as gamified 
and VR training tools. Jotun is also constructing a fully equipped media 
studio to facilitate the production of more content, such as training films, 
webinars, podcasts, and virtual tutorials. 
Health and Safety
The goal of Jotun’s HSEQ strategy is to continuously improve safety and 
quality performance across the company’s value chain, with a zero-
tolerance approach to injuries, fires and spills. 
To ensure HSEQ policies are uniformly applied and followed, Jotun relies 
on the HSEQ Management System, which provides a structure for the 
organisation to manage 15 elements related to health, safety, environment 
and product quality management. Jotun companies are required to track 
and report on standardised KPIs and subject to periodic audits from 
trained Jotun personnel. 
In 2022 Jotun continued the focus and training within fire risk assessments, 
fire detection, fire segregation and fire-fighting systems. Jotun qualified 
more instructors in all regions to build operator competence and risk 
awareness. These training efforts are supported by other programmes, 
such as safety walks, daily meetings, short safety videos and so-called 
“Toolbox Talks”, where operators gather to ask questions and discuss 
safety issues.
Jotun has also increased investments in automation in many factories to 
help operators avoid workplace injuries. 
“I Care” programme
Launched in 2014, the “I Care” programme is an internal campaign to raise 
HSEQ awareness. Each Jotun company runs three separate “I Care” projects 
every year. One project is developed by Group Technical, while each of the 
manufacturing sites launches the other two. In 2022, the Group initiated 
topic was fire safety. 
The number of injuries resulting in an absence of one day or more per one 
million working hours (Lost Time Injury Rate LTIR) was 1.9 (1.4 in 2021), The 
LTIR for Jotun A/S was 0.0 in 2022 compared with 0.59 in 2021. Absence 
due to sickness for the Group in 2021 was 1.9 per cent, compared to 1.7 
per cent in 2021. Absence due to sickness in Jotun A/S was 3.1 per cent in 
2022 compared with 2.1 per cent in 2021. 
Responsible purchasing
As a part of supplier evaluations, Jotun distributes the Supplier Integrity 
Declaration to vendors. Jotun’s requirements to suppliers cover a broad 
range of topics including Human Rights, anti-corruption, child labour, 
the right to organise, diversity and inclusion, safe working environments, 
among others. For suppliers who fall short of Jotun standards but are 
willing to change, Jotun provides support to help them achieve compliance. 
To track and verify compliance, Jotun conducts periodic audits and 
assessments. Some physical audits for packaging and raw materials 
suppliers are administered by trained Jotun personnel while others are 
conducted by trusted third party auditors. 
Board of Directors    Jotun Annual Report 2022    13
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Global commitment
By working closely with international partners, Jotun seeks to make 
a meaningful impact on the society, including organisations like the 
International Red Cross / Red Crescent Movement, Norwegian People’s 
Aid, Bellona, UN Global Compact and Transparency International and 
UNICEF. In 2022, Jotun made significant donations through the Norwegian 
Red Cross to provide relief for flood victims in Pakistan and support of 
Ukrainians in conflict zones. 
Local commitment 
Jotun operates in many countries around the world where the needs in the 
local communities may differ. All companies are required to select, support 
and report on local Corporate Responsibility activities. Projects include 
support for schools, orphanages, and programmes that provide access to 
basic health services and education. For example, in 2022, Jotun provided 
support to the Karanba project, which serves disadvantaged children and 
young adults in Rio de Janeiro, Brazil. 
Business ethics 
As a responsible corporate citizen, Jotun puts ethical business conduct 
at the heart of its operations. Standing by Jotun values and business 
principles allows the company to sustain a robust and effective 
organisation in light of evolving markets and growing competition.
Jotun conducts business operations in line with the company values 
(Loyalty, Care, Respect and Boldness) in the interest of customers, 
suppliers, employees, shareholders, the environment, and society at 
large. Jotun’s business principles cover the areas of ethics and integrity, 
community, fair trade, and free competition. They also define how the 
company treats employees and operates the business.
Anti-corruption, dilemma training 
Jotun works actively against corruption. In addition to reputational damage 
to the Jotun brand, corruption and bribery are threats to economic 
development and contribute to poverty and the erosion of the rule of law. 
As a global company, Jotun acknowledges its responsibility to customers, 
suppliers, shareholders, employees and local communities to maintain 
its integrity and high ethical standards, as defined by Jotun values and 
Jotun Business Principles. Jotun’s Anti-Corruption Policy outlines the basic 
requirements that Jotun employees are required to follow to avoid corrupt 
practices in connection with their company business activities. 
Certain employees, including sales teams, purchasing staff and company 
management, face greater risk of exposure to potentially corrupt 
scenarios. They receive tailored dilemma training. To reinforce training for 
all employees, Jotun launched a digital anti-corruption gamified training 
tool in 2022. 
Whistle blowing
Jotun’s “whistle-blowing” channel, available to both internal and external 
stakeholders, violations of Jotun’s business principles or other concerns 
are reported, logged, investigated and resolved. All reports are handled 
confidentially, and whistle-blowers are treated with respect and protected. 
Jotun encourages individuals to report on violations of Jotun’s Business 
Principles, laws or regulations. 
Human Rights
Jotun supports international efforts, standards, declarations, and 
collaborations aimed at creating fair, proper and healthy business 
environments. Jotun’s Human Rights policy is aligned with the United 
Nations Guiding Principles on Human Rights and the International Labour 
Organisation (ILO) Declaration on Fundamental Principles and Rights at 
Work. The company adheres to the United Nations Global Compact (UNGC) 
to contribute to the goal of creating a sustainable and inclusive global 
economy. 
8. ESG - GOVERNANCE 
Jotun’s Business Principles and values (Loyalty, Care, Respect and Boldness) 
provide the bedrock for the company’s governance framework. These 
are supported by corporate, regional and divisional bodies alongside 
supporting documentation, policies and leadership training, and are 
anchored all the way from the the top of the organisation. Guidance and 
training, alongside control, contribute to a compliance development based 
on understanding and ownership.
Governance bodies
The hierarchy of Jotun’s governance structure is as follows: The Board of 
Directors, Jotun Group Management and regional and local management, 
with the support of staff functions on all levels. Group policies are 
described in a hierarchy of steering documents and are the source of all 
local policies. The steering documents are open to view by all employees 
in the Jotun Management System, which is reviewed and updated every six 
months.
Compliance 
Jotun has extensive compliance programmes in place that pertain to all 
relevant business functions. This ensures that all Jotun companies are in 
accord with Group policies. For example, all Jotun companies must submit 
HSEQ performance reports for evaluation by their respective Boards. The 
Board is informed of the HSEQ compliance status of each company once 
a year. 
Reporting
Jotun’s extensive internal reporting systems, as well as assessments, audits 
and reviews, ensure the company is performing as expected. Relevant 
departments update these systems on an ongoing basis as new policies 
are instituted. For example, all Jotun companies are subject to periodic 
Business Reviews for which they must provide sales figures and market 
forecasts, as well as data pertaining to environmental impacts, competence 
development KPIs, HSEQ initiatives and sustainability activities. Once a 
year, the Board is updated on compliance status, including whistleblowing 
cases. 
Jotun is also required to comply with the Norwegian Transparency Act, 
introduced in 2022. Jotun has taken steps to align its business with new 
requirements, including updating Jotun’s Human Rights Policy, integrating 
due diligence requirements into existing internal and external procedures, 
and established a channel for requests for information on Human Rights, 
https://www.jotun.com/th-en/about-jotun/sustainability/social. Jotun will 
publish a Human Rights report at the same site by June 30th, 2023.
 
Certifications
Compliance is validated through certification by recognised international 
standards, such as Quality Management (ISO 9001), Environmental 
Management (ISO 14001) and Occupational Health and Safety (ISO 45001).
Directors and Officers liability insurance
Jotun has established adequate directors’ and officers’ liability insurance.
14    Jotun Annual Report 2022    Board of Directors
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9. FUTURE PROSPECTS 
While the Board was encouraged by easing raw materials prices in the 
second half of 2022, prices remain high. At the same time, the war in 
Ukraine, lingering effects of the pandemic (notably in China), ongoing 
supply chain disruptions and high transportation costs are likely to 
impact sales and profitability going forward. Nevertheless, based on the 
company’s ability to manage shocks to the global economy over the last 
three years, the Board is confident Jotun will continue to grow. 
In the Marine Coatings segment, newbuilding orders are expected to 
rise, while growing pressure on owners and shipmanagers to manage 
emissions regulations will create more demand for Jotun’s premium 
hull coatings products and related services. In the Protective Coatings 
segment, demand for Jotun’s anti-corrosive coatings and fire protection 
products is likely to increase, driven by construction and maintenance of 
oil, gas and renewable energy facilities to meet the needs of a growing 
world population. 
In the Powder Coatings segment, rising production costs may impact 
volumes in some markets, while in others, high inflation may slow demand 
for consumer goods, such as furniture and appliances. However, thanks to 
Jotun’s strong portfolio of premium products and continued investments in 
pioneering solutions, the Board has confidence the segment will rebound 
after a difficult year. 
While sales in the Decorative Paints segment may be impacted by 
consumer sensitivity to inflation and a slowdown in the project market in 
some countries, the Board notes that Jotun has enjoyed uninterrupted 
growth in this segment for more than two decades. By continuing to drive 
innovation, supporting Jotun dealers, and developing effective marketing 
strategies for both the consumer and project markets, Jotun is confident 
the growth trend in Decorative Paints segment will continue in the years 
to come. 
Finally, the Board recognises that growing pressure on customers in all 
segments to reduce their environmental impacts represents a strong 
market opportunity for Jotun. By improving the company’s performance 
and working with suppliers and customers to help them achieve their own 
sustainability goals, Jotun is in a strong position to not only contribute to a 
more sustainable world but continue to pursue its organic growth strategy.   
Sandefjord, Norway, 14 February 2023
The Board of Directors
Jotun A/S
Morten Fon
President & CEO
Odd Gleditsch d.y.
Chairman
Jannicke Nilsson
Einar Abrahamsen
Nicolai A. Eger
Bjørg Engevik Nilsen
Camilla Hagen Sørli
Terje Andersen
Per Kristian Aagaard
Board of Directors    Jotun Annual Report 2022    15
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CONSOLIDATED INCOME STATEMENT
(NOK million)
Note
2022
2021
Operating revenue
2.1
27 858
22 809
Share of profit from associates and joint ventures
5.5
729
496
Cost of goods sold
2.1
-15 941
-12 480
Payroll expenses
2.2
-3 686
-3 389
Other operating expenses
2.3
-4 237
-3 421
Depreciation, amortisation and impairment
3.2, 3.3
-986
-876
Operating profit
3 737
3 138
Net financial items
4.3
-546
-248
Profit before tax
3 191
2 890
Income tax expense
5.1
-1 024
-779
Profit for the year
2 167
2 111
Profit for the year attributable to:
Equity holders of the parent company
2 056
1 998
Non-controlling interests
111
113
Total
2 167
2 111
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(NOK million)
Note
2022
2021
Profit for the year
 2 167 
 2 111 
Other comprehensive income not to be reclassified to profit 
or loss in subsequent periods:
Actuarial gain/loss (-) on defined benefit pension plans (net of tax)
5.2
 28 
-8 
Other comprehensive income to be reclassified to profit or 
loss in subsequent periods:
Gain/loss (-) on hedge of net investments in foreign operations
(net of tax)
 54 
 15 
Hyperinflation adjustment for the year ( and at 1 January)
5.10
 319 
 - 
Currency translation differences in foreign operations
 274 
-90 
Other comprehensive income for the year, net of tax
 674 
-83 
Total comprehensive income for the year
 2 842 
 2 028 
Total comprehensive income attributable to:
Equity holders of the parent company
 2 766 
 1 913 
Non-controlling interests
 76 
 115 
Total
 2 842 
 2 028 
  Operating revenue (NOK million)    
 Revenue growth (in %)
17 660
19 652
21 070
22 809
27 858
2018
2019
2020
2021
2022
8 %
11 %
7 %
8 %
22 %
1 361
2 320
3 489
3 138
3 737
2018
2019
2020
2021
2022
  
  Operating margin (in %)
7.7 %
11.8 %
16.6 %
13.8 %
13.4 %
16    Jotun Annual Report 2022    Jotun Group
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(NOK million)
Note
31.12.2022
31.12.2021
ASSETS
Non-current assets 
Deferred tax assets
5.1
 410 
 386 
Other intangible assets 
3.2
 831 
 765 
Property, plant and equipment
3.3, 5.4
 8 144 
 7 612 
Investments in associates and joint ventures
5.5
 1 674 
 1 419 
Share investments
5.9
 6 
 9 
Other non-current financial receivables
4.1, 5.9
 85 
 67 
Total non-current assets
 11 151 
 10 257 
Current assets 
Inventories 
3.4
 4 821 
 4 034 
Trade and other receivables 
3.5, 5.9
 7 071 
 5 753 
Cash and cash equivalents 
4.2, 5.9
 3 312 
 3 388 
Total current assets
 15 204 
 13 175 
Total assets
 26 355 
 23 432 
(NOK million)
Note
31.12.2022
31.12.2021
EQUITY AND LIABILITIES
 
Equity 
 
Share capital
5.8
 103 
 103 
Other equity 
 14 010 
 12 014 
Non-controlling interests
 380 
 352 
Total equity
 14 493 
 12 468 
Non-current liabilities 
Pension liabilities
5.2
 251 
 296 
Deferred tax liabilities
5.1
 107 
 73 
Provisions
3.7
 125 
 188 
Interest-bearing debt
4.1, 5.9
 2 292 
 2 995 
Other non-current liabilities
 22 
 15 
Total non-current liabilities
 2 797 
 3 567 
Current liabilities 
Interest-bearing debt 
4.1
 2 796 
 2 266 
Trade payables
5.9
 3 489 
 2 926 
Tax payable
5.1
 397 
 227 
Other current liabilities 
3.6, 3.7, 5.9
 2 383 
 1 979 
Total current liabilities 
 9 065 
 7 398 
Total liabilities
 11 862 
 10 964 
Total equity and liabilities
 26 355 
 23 432 
Sandefjord, Norway, 14 February 2023
The Board of Directors
Jotun A/S
Morten Fon
President & CEO
Odd Gleditsch d.y.
Chairman
Jannicke Nilsson
Einar Abrahamsen
Nicolai A. Eger
Bjørg Engevik Nilsen
Camilla Hagen Sørli
Terje Andersen
Per Kristian Aagaard
Jotun Group    Jotun Annual Report 2022    17
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                  EQUITY HOLDERS OF THE PARENT COMPANY
(NOK million)	
Note
Share 
capital
Other 
equity
Translation 
differences
Total
Non-con­
trolling 
interests
Total 
equity
Equity as of 1 January 2021
103
9 989
710
10 802
326
11 128
Dividends
5.8
-599
-599
-93
-691
Profit for the year
1 998
1 998
113
2 111
Other comprehensive income
7
-92
-85
2
-83
Share capital increase
-
-
-
4
4
Equity as of 31 December 2021
103
11 396
618
12 116
352
12 468
Dividends
5.8
-770
-770
-70
-840
Profit for the year
2 056
2 056
111
2 167
Other comprehensive income
400
310
710
-36
674
Share capital increase
-
-
-
23
23
Equity as of 31 December 2022
103
13 083
927
14 113
380
14 493
CONSOLIDATED STATEMENT OF CASH FLOWS  	
(NOK million)
Note
2022
2021
Cash flow from operating activities
Operating profit
3 737
3 138
Adjustments to reconcile operating profit to net cash flows:
     Share of profit from associates and joint ventures
2.2. 5.5
-729
-496
     Dividend paid from associates and joint ventures
5.5
600
727
     Depreciation, amortisation and impairment
3.2, 3.3
986
876
     Change in accruals, provisions and other
154
152
Working capital adjustments:
     Change in trade and other receivables
-1 318
-774
     Change in trade payables
564
591
     Change in inventories 
-787
-1 156
Cash generated from operating activities
3 207
3 059
Interest received
4.3
45
21
Interest paid
4.3
-397
-168
Other financial items
-162
-128
Income tax payments
-885
-816
Net cash flow from operating activities
1 809
1 968
Cash flow from investing activities
Proceeds from sale of property, plant and equipment
441
80
Purchase of property, plant and equipment
3.3
-1 161
-1 260
Purchase of intangible assets
3.2
-119
-103
Net cash flow from investing activities
-839
-1 283
Cash flow from financing activities
Share capital increase in non-controlling interests
23
4
Proceeds from borrowings
1 030
2 284
Repayment of borrowings
-1 321
-1 672
Payment of principal portion of lease liabilities 
-149
-141
Dividend paid to equity holders of the parent company
5.8
-770
-599
Dividend paid to non-controlling interests
-70
-93
Net cash flow from financing activities
-1 257
-217
Net increase / decrease (-) in cash and cash equivalents
-287
469
Cash and cash equivalents as of 1 January 
4.2
3 388
2 956
Net currency translation effect
48
-37
Inflation effect on cash
5.10
164
-
Cash and cash equivalents as of 31 December
4.2
3 312
3 388
1 012
1 903
2 956
3 388
3 312
2018
2019
2020
2021
2022
  Cash and Cash equivalents
18    Jotun Annual Report 2022    Jotun Group
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Notes for the Group
The notes are grouped into five sections and contain 
relevant financial information as well as a description 
of the accounting policies applied for the respective 
accounts included in the individual note.
01
Basis of Preparation 
1.1
Accounting policies
20
1.2
New accounting policies
20
1.3
Estimates and judgements
20
1.4
Events after the balance sheet date
20
02
Results for the Year
2.1
Operating revenue
22
2.2
Payroll expenses
23
2.3
Other operating expenses
23
03
Invested Capital and Working Capital Items
3.1
Overview
26
3.2
Intangible assets
27
3.3
Property, plant and equipment
28
3.4
Inventories
30
3.5
Trade and other receivables
30
3.6
Other current liabilities
31
3.7
Provisions
31
3.8
Contingent liabilities
32
3.9
Contractual obligations and guarantees
32
04
Capital Structure and Financial Items
4.1
Interest-bearing debt
34
4.2
Cash and cash equivalents
35
4.3
Net financial items
35
4.4
Financial risk management
36
05
Other Disclosures
5.1
Taxation
38
5.2
Pensions and other long-term employee benefits
40
5.3
Remunerations
41
5.4
Leases
42
5.5
Associates and joint ventures
44
5.6
Related parties
45
5.7
Subsidiaries
45
5.8
Share capital and shareholder information
46
5.9
Details of financial assets and liabilities
47
5.10 Hyperinflation accounting
49
5.11 Alternative performance measures
50
Jotun Group    Jotun Annual Report 2022    19
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BASIS OF PREPARATION
Jotun A/S is a limited liability company incorporated in Norway. The Group’s 
headquarter is in Sandefjord, Norway, and the Group including associates 
and joint ventures employs around 10 000 people in 46 countries.
The Group consists of the parent company Jotun A/S and its subsidiaries. 
The consolidated financial statements consist of the Group as well as the 
Group’s net interests in associates and joint ventures.
1.1 ACCOUNTING POLICIES
Accounting policies, estimates and judgements are incorporated into 
the individual notes with the exception of general information described 
in this section. 
The consolidated financial statements are prepared based on the 
historical cost principle, except for financial assets and liabilities which 
are recognised at fair value.
The consolidated financial statements have been prepared on the basis 
of the going concern assumption.
Statement of compliance
The Group’s consolidated financial statements have been prepared 
in accordance with International Financial Reporting Standards (IFRS) 
and interpretations as adopted by the European Union (EU), as well as 
Norwegian disclosure requirements that follow from the Norwegian 
Accounting Act.
Debt and equity instruments in the Group are not traded in a public 
market. Consequently, operating segment reporting according to IFRS 8 
does not apply for the Group.
Basis for consolidation 
The Group’s consolidated financial statements comprise Jotun A/S and 
companies in which Jotun A/S has a controlling interest. The financial 
statements of subsidiaries are fully consolidated from the date that 
control commences until the date that control ceases. 
The financial statements of the subsidiaries are prepared for the same 
reporting period as Jotun A/S. All intercompany balances, income and 
expenses and cash flows relating to transactions between members of 
the Group are eliminated in full.
Interests in associates and joint ventures
The Group has interests in associates and joint ventures. An associate 
is an entity in which the Group has significant, but not controlling 
influence, with an ownership normally between 20 and 50 per cent. 
A joint venture is a jointly controlled entity, normally with a 50/50 
ownership.
The Group’s investments in associates and joint ventures are accounted 
for using the equity method. Under the equity method, the Group 
presents its share of the companies’ results after tax on a separate line 
in the income statement. Share of equity is reported as investments in 
associates and joint ventures in the balance sheet.
The financial statements of associates and joint ventures are prepared 
for the same reporting period and based on the same accounting 
policies as for the Group.
Non-controlling interests 
The non-controlling interests are presented separately in the 
consolidated financial statements representing the minority’s share of 
equity and profit.
Foreign currency transactions  
In the individual financial statements for each entity in the Group, 
transactions in foreign currency are initially recorded in the entity’s 
functional currency based on exchange rates at the date of transaction. 
Monetary items in foreign currency are translated into functional 
currency using the exchange rate applicable at the balance sheet date. 
Non-monetary items in foreign currency are translated into functional 
currency using the exchange rate applicable at the transaction date.  
Translation of foreign operations to NOK 
The Group’s presentation currency is Norwegian Krone (NOK). This is 
also Jotun A/S’ functional currency. Each entity in the Group determines 
its own functional currency, and the majority of financial statements are 
denominated in other currencies than NOK.  
Assets and liabilities in entities with other functional currencies than 
NOK are translated into NOK using the exchange rate applicable at the 
balance sheet date. Their income statements are translated monthly 
at the average exchange rate for the month. Exchange rate differences 
are recognised in other comprehensive income. Income statements in 
hyperinflation economies are, however, translated at the exchange rate 
as of the balance sheet date. 
Financial risk management
Jotun A/S uses foreign currency options and forward currency contracts 
to ensure predictability in the short to medium term cash flows.
Hedge accounting in the Group is limited to hedge of net investment. 
Jotun A/S finances the majority of its subsidiaries with intercompany loans 
in local currencies. Intercompany loans for which settlement is neither 
planned nor likely to occur in the foreseeable future are accounted for as 
part of the net investment in foreign operations. In addition, a USD loan 
and a rolling currency swap serve as a hedge of net investments in foreign 
operations for which gains or losses related to the effective portion of the 
hedge are recognised in other comprehensive income.
1.2 NEW ACCOUNTING POLICIES
No new IFRS standards, amendments or interpretations have been 
issued that have a significant impact on the consolidated financial 
statements for the Group.
1.3 ESTIMATES AND JUDGEMENTS
In preparing the consolidated financial statements, Management makes 
various accounting estimates and assumptions that form the basis of 
the presentation, recognition and measurement of Jotun’s assets and 
liabilities.
Determining the carrying amounts of some assets and liabilities 
requires estimates and assumptions concerning future events. 
Estimates and assumptions are based on historical experience 
and other factors, which Management assesses to be reasonable, 
but which by their nature involve uncertainty and unpredictability. 
These assumptions may have to be revised as unexpected events or 
circumstances may occur.
The areas that involve a high degree of judgement and are material to 
the financial statements are described in more detail in the relevant 
notes. 
1.4 EVENTS AFTER THE BALANCE SHEET DATE
New information regarding the Group’s financial position at the end 
of the reporting period and that becomes known after the reporting 
period, is recorded in the annual accounts. Events after the reporting 
period that do not affect the Group’s financial position at the end of the 
reporting period, but which will affect the Group’s financial position in 
the future, are disclosed if significant.
No events have taken place after the balance sheet date that would have 
affected the financial statements, or any assessments carried out.
20    Jotun Annual Report 2022    Jotun Group
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This section includes 
notes related to the 
consolidated income 
statement.
Results for the Year
Jotun achieved record sales and earnings in 
2022, despite the many challenges imposed by 
the war in Ukraine, high raw material prices, the 
coronavirus pandemic, rising interest rates and 
inflation and the energy crisis in Europe. 
The increase in operating revenue is driven by 
growth in all segments. Growth was particularly 
strong in Marine Coatings driven by the 
resurgence of newbuilding activity and a strong 
maintenance market. Protective Coatings also 
delivered good sales growth, while in Decorative 
Paints, strong growth the Middle East and 
South East Asia more than offset lower sales 
in Scandinavia. In Powder Coatings, sales grew 
more modestly driven by higher average selling 
prices, while volume dropped. 
Operating profit increased by 19 per cent in 
2022 compared to last year.  The improvement 
is driven by price increases, volume growth, and 
good cost control. 
27 858 
Operating revenue
(NOK million)
2021: 22 809
3 737 
Operating profit
(NOK million)
2021: 3 138
13.4 % 
Operating margin
2021: 13.8 %
Section 02
Jotun Group    Jotun Annual Report 2022    21
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2.1 OPERATING REVENUE
Total operating revenue consists of revenue from the sale of paints and coatings, classified as revenue from 
­contracts with customers, as well as other revenue, which includes royalty income from associates, joint ventures 
and other external partners, miscellaneous grants and refunds, and profit from sale of fixed assets.  	
(NOK million)
2022
2021
Revenue from contracts with customers 
25 891
21 423
Revenue from contracts with customers - associates and joint ventures
1 294
899
Total revenue from contracts with customers 
27 185
22 321
Other revenue
249
171
Other revenue from associates and joint ventures
425
316
Total operating revenue
27 858
22 809
(NOK million)
2022
2021
South East Asia and Pacific
7 177
 5 371 
North East Asia
4 817
 4 140 
Middle East, India and Africa
4 929
 3 654 
West Europe and Scandinavia
6 746
 6 083 
East Europe and Central Asia
2 682
 2 440 
Americas
833
 632 
Total revenue from contracts with customers 
27 185
 22 321 
(NOK million)
2022
2021
Decorative
10 246
8 389
Protective
8 835
7 344
Marine
5 908
4 538
Powder
2 195
2 050
Total revenue from contracts with customers 
27 185
22 321
Cost of Goods Sold
15 941
12 480
Gross Profit
11 244
9 842
Cost of goods sold comprises raw materials and packaging materials. The five largest raw materials categories 
account for more than 50 per cent of total cost of goods sold. These categories are titanium dioxide, emulsions, 
epoxy resins, additives and metals. Cost of conversion is reported as part of manufacturing costs as described 
in Note 2.3.
Payment terms are based on agreements and local business practices and are in general in the range of 30 to 
90 days.
In July 2022, Jotun sold its Russian company Jotun Paints LLC, with a gain of NOK 54 million recognised as Other 
revenue. 
  Accounting policy
Revenue from contracts with customers is recognised when control of the goods or services are transferred to 
the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange 
for those goods or services. Revenues are presented net of value added tax and discounts.
Variable considerations such as rebates, bonuses, discounts and payments to customers, are accrued for when 
performance obligations are met and related revenue is recognised. Variable considerations are only recognised 
when it is highly probable that they will not be subject to significant reversal. 
The Group does not have any contracts where the period between the transfer of the goods to the customer 
and payment by the customer exceeds one year. Consequently, the Group does not adjust transaction prices for 
the time value of money.
32 %
PROTECTIVE COATINGS
2021: 33 %
22 %
MARINE COATINGS
20201: 20 %
8 %
POWDER COATINGS
2021: 9 %
38 %
DECORATIVE PAINTS
2021: 38 %
Group sales 
per segment
22    Jotun Annual Report 2022    Jotun Group
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2.2 PAYROLL EXPENSES
Payroll expenses are the total disbursements relating to remuneration of personnel employed by the Group. 
These expenses comprise direct salaries and holiday pay, bonuses, pension costs and public taxes/charges 
relating to the employment of personnel.
(NOK million)
2022
2021
Wages including bonuses
 2 957 
 2 718 
Social costs
 387 
 366 
Pension costs, ref. Note 5.2 
 176 
 192 
Other personnel costs
 165 
 113 
Total 
3 686
3 389
Average full-time equivalents employees
7 396
7 444
The Group has a system of annual bonuses that applies to senior management and is limited to a maximum of 
20 per cent of annual basic salary. Further, all members of Group Management, including the President & CEO, 
are part of an annual profit-dependent bonus system limited upwards to 50 per cent of annual basic salary.
The Group’s pension plans are primarily defined contribution plans. For further information see Note 5.2. 
For further information regarding remuneration to the President & CEO and Board of Directors see Note 5.3.
2.3 OTHER OPERATING EXPENSES
Other operating expenses comprise all operating expenses that are not related to cost of goods sold, payroll 
expenses and capital costs such as depreciation, amortisation and impairment. The main items of other ­
operati­ng expenses have been grouped in the table below.  
	
(NOK million)
2022
2021
Manufacturing
547
464
Warehouse
248
217
Transportation
785
629
Sales and marketing
1 328
1 104
Research and Development
381
309
General and administrative
839
566
Other
109
132
Total
4 237
3 421
Manufacturing costs include change in cost of conversion related to finished goods.
Research and Development consists of costs from projects in a research phase and development costs related 
to cancelled projects. Total Research and Development costs including payroll expenses are NOK 658 million 
(2021: NOK 576 million) of which NOK 37 million has been capitalised as intangible assets specified in Note 3.2.
Other consists mainly of product liability claims, losses on accounts receivable and technical service. See Note 
3.5 and 3.7 for further details.
2 830
3 128
3 277
3 389
3 686
2018
2019
2020
2021
2022
  Payroll expenses
 In % of Revenue from contracts with customers
16 %
16 %
16 %
15 %
14 %
3 409
3 449
3 584
3 421
4 237
2018
2019
2020
2021
2022
  Other operating expenses
 In % of Revenue from contracts with customers
20 %
18 %
17 %
15 %
16 %
Jotun Group    Jotun Annual Report 2022    23
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24    Jotun Annual Report 2022    Jotun Group
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28.7 % 
Operating working
capital / revenue
2021: 27.4 %
16 637 
Capital employed
(NOK million)
2021: 14 482
1 280 
Investments in intangible 
and fixed assets
(NOK million)
2021: 1 363
Operating working capital in per cent of sales 
increased during 2022. This is mainly explained 
by the strong sales growth and high raw 
material prices driving increases in customer 
receivables and inventory. With persistent focus 
on working capital, customer credit days have 
remained stable. 
 
The increase in capital employed, beyond the 
rise in operating working capital, is driven by 
investments in new production facilities in 
Egypt, Qatar and Indonesia, construction of new 
regional headquarters and R&D facility in Dubai 
as well as facility upgrades in Norway. 
The notes in this 
section provide 
details of the 
assets and related 
liabilities that form 
the basis for the 
Group’s activities.
Section 03
Invested Capital and Working 
Capital Items
Jotun Group    Jotun Annual Report 2022    25
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(NOK million)
Note
31.12.2022
31.12.2021
Change
Inventories
3.4
4 821
4 034
787
Accounts receivable
3.5
6 312
5 118
1 194
Trade payables
5.9
-3 489
-2 926
-564
Operating working capital
7 643
6 227
1 417
Bank drafts
3.5
128
118
10
Other receivables
3.5
630
516
114
Public charges and holiday pay
3.6
-332
-332
1
Other accrued expenses
3.6
-1 478
-1 139
-339
Current provisions
3.6, 3.7
-206
-206
-1
Other working capital
-1 257
-1 042
-215
Net working capital
6 386
5 185
1 202
Intangible assets
3.2
831
765
66
Property, plant and equipment
3.3
8 144
7 612
532
Investments in associates and joint ventures
5.5
1 674
1 419
255
Non-current provisions
3.7
-125
-188
63
Pension liabilities
5.2
-251
-296
45
Other non-current liabilities
-22
-15
-8
Invested capital
10 251
9 298
953
Capital employed
16 637
14 482
2 155
Net deferred tax
5.1
303
313
-10
Tax payable
5.1
-397
-227
-170
Share investments
5.9
6
9
-2
Prepaid dividend from associates and joint ventures
3.6
-368
-301
-67
Other invested capital
-455
-206
-249
Invested capital and working capital items
16 182
14 276
1 906
Net interest-bearing debt
4.1
-1 690
-1 807
117
Total Equity
14 493
12 468
2 025
3.1 OVERVIEW
The table shows investments in working capital items 
and invested capital. Capital employed is the total 
of net working capital and invested capital, which is 
the basis for generation of operating profit before 
interest and tax (EBIT). Return on capital employed 
(ROCE) is the ratio of EBITA to capital employed, 
and is used to measure the Group’s profitability and 
capital efficiency.
26    Jotun Annual Report 2022    Jotun Group
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3.2 INTANGIBLE ASSETS
Intangible assets are non-physical assets that have either 
been capitalised through internal development of products 
(development cost), customisation of IT applications or 
separate acquisitions. 
  Accounting policy
Intangible assets are measured at cost, net of accumulated 
amortisation and accumulated impairment losses. 
Amortisation of intangible assets with limited economic 
lives are calculated on a straight-line basis over the 
estimated useful life. The amortisation method and 
period are assessed at least once a year. Changes to the 
amortisation method and/or period are accounted for as a 
change in estimate. Intangible assets with unlimited useful 
lives are not amortised but tested for impairment annually. 
The methodology for impairment testing is described in 
Note 3.3.
All intellectual property rights are owned by Jotun A/S. 
Development costs are capitalised only if the product is 
technically and commercially feasible and the business case 
demonstrates a probability for future economic benefit. 
Capitalised development costs mainly include internal 
payroll costs in addition to purchased materials and services 
used in the development programmes. Amortisation of 
assets with limited useful life begins when development is 
complete, and the asset is available for use. 
(NOK million)
Development cost
IT applications and other 
intangibles
Total
Cost
Balance as of 1 January 2021
445
813
1 258
Additions
37
67
103
Disposals
-
-117
-117
Reclassifications
-
2
2
Foreign currency translation effect
-
4
4
Balance as of 31 December 2021
482
769
1 250
Additions
37
82
119
Disposals
-
-17
-17
Reclassifications
-
14
14
Hyperinflation adjustment
-
17
17
Foreign currency translation effect
-
26
26
Balance as of 31 December 2022
519
891
1 410
Amortisation and impairment
Balance as of 1 January 2021
-107
-410
-517
Amortisation
-20
-62
-83
Disposals
-
114
114
Foreign currency translation effect
-
-
-
Balance as of 31 December 2021
-127
-358
-486
Amortisation
-20
-58
-78
Disposals
-
13
13
Reclassifications
-
-6
-6
Hyperinflation adjustment
-
-13
-13
Foreign currency translation effect
-
-10
-10
Balance as of 31 December 2022
-148
-432
-579
Net book value
Balance as of 31 December 2022
371
459
831
Balance as of 31 December 2021
355
410
765
Estimated useful life
8-10 years
3-8 years
Jotun Group    Jotun Annual Report 2022    27
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3.3 PROPERTY, PLANT AND 
EQUIPMENT
Property, plant and equipment (PP&E) 
comprises various types of tangible fixed 
assets needed for the type of business 
conducted by the Group.
 
A major part of the amount under 
Construction in progress relates to the  
new production facilities in Egypt and 
Indonesia and construction of a new 
regional headquarter and R&D facility in 
Dubai.
See Note 5.4 for further information 
related to Right-of-Use assets.
(NOK million)
Land
Buildings
Electrical 
installations
Machinery, 
vehicles 
and equip­
ment
Construction 
in progress
Right-of- 
Use assets
Total
Cost
Balance as of 1 January 2021
308
4 588
971
4 584
1 003
852
12 306
Additions
24
282
168
594
192
226
1 486
Disposals
-1
-106
-2
-125
-
-10
-245
Reclassifications
1
24
-11
47
-63
-1
-3
Foreign currency translation effect
-12
-10
-9
-70
28
-12
-85
Balance as of 31 December 2021
319
4 779
1 117
5 030
1 160
1 055
13 459
Additions
-
69
42
390
659
284
1 445
Disposals
-19
-351
-67
-238
-12
-79
-765
Reclassifications
-22
373
31
419
-829
27
-1
Hyperinflation adjustments
16
138
2
293
1
18
469
Foreign currency translation effect
7
182
41
137
-72
51
346
Balance as of 31 December 2022
303
5 190
1 166
6 032
907
1 356
14 953
Depreciation and impairment
Balance as of 1 January 2021
-6
-1 760
-305
-2 986
-12
-252
-5 322
Depreciation
-
-160
-92
-382
-148
-782
Depreciation on disposals
-
97
1
112
7
217
Impairment
-
-11
-
-
-
-12
Reclassifications
-
4
10
-12
1
3
Foreign currency translation effect
-
-
4
30
9
5
48
Balance as of 31 December 2021
-6
-1 830
-382
-3 239
-3
-387
-5 847
Depreciation
-
-176
-97
-434
-164
-872
Depreciation on disposals
-
160
31
202
46
439
Impairment
-
-3
-
-33
-
-36
Reclassifications
-
20
-4
-10
-1
6
Hyperinflation adjustments
-
-54
-1
-224
-6
-286
Foreign currency translation effect
-1
-86
-15
-88
-22
-212
Balance as of 31 December 2022
-7
-1 971
-468
-3 824
-4
-534
-6 808
Net book value
Balance as of 31 December 2022
295
3 219
698
2 207
903
821
8 144
Balance as of 31 December 2021
313
2 949
735
1 791
1 156
668
7 612
Estimated useful life
indefinite 25-33 years 10-14 years
3-10 years
  Accounting policy
PP&E are stated at cost less accumulated 
depreciation and impairment charges. 
Costs include expenditures that are directly 
attributable to the purchase of the asset, 
including borrowing cost of investment 
projects under construction.
PP&E are depreciated over estimated useful 
life after deduction of estimated residual 
value. Depreciation methods, useful lives 
and residual values are reassessed annually. 
Changes to the estimated residual value of 
useful life are accounted for as a change in 
estimate. 
Costs of major maintenance activities 
are capitalised and depreciated over the 
estimated useful life. Maintenance costs which 
cannot be separately defined as a component 
of PP&E are expensed in the period in which 
they occur.
 
  Estimate and judgement
The Group assesses the carrying value of 
intangible assets and PP&E whenever events 
or changes in circumstances indicate that 
the carrying value of an asset may not be 
recoverable.
If the carrying value of an asset exceeds its 
estimated recoverable amount, an impairment 
loss is recognised in the income statement.
The assessment for impairment is performed 
for assets generating largely independent 
cash inflows.
The Group reverses impairment losses in the 
income statement if and to the extent this is 
substantiated by a change in the estimates 
used to determine the recoverable amount.
28    Jotun Annual Report 2022    Jotun Group
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911
1 273
1 461
1 486
1 445
2018
2019
2020
2021
2022
  Additions - Property, Plant and Equipment (NOK million)
 In % of Revenue from contracts with customers
5.3 %
6.6 %
7.1 %
6.7 %
5.3 %
Property, Plant 
and Equipment
5 %
BUILDINGS
45 %
CONSTRUCTION 
IN PROGRESS
20 %
LEASES
3 %
ELECTRICAL 
INSTALLATIONS
27 %
MACHINERY, VEHICLES 
AND EQUIPMENT
Jotun Group    Jotun Annual Report 2022    29
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3.5 TRADE AND OTHER RECEIVABLES
Trade and other receivables are presented net of allowance for bad debt. Changes in allowance for bad debt, 
including realised losses, are classified as other operating expenses in the income statement, ref. Note 2.3. 
Bank drafts are received as payment of accounts receivable and have a maturity period of more than three months. 
Received bank drafts are used to pay suppliers, ref. Note 3.9.
(NOK million)
31.12.2022
31.12.2021
Accounts receivable
6 312
5 118
Bank drafts
128
118
Trade receivables
6 440
5 237
Other receivables
630
516
Total
7 071
5 753
The change in allowance for bad debt is shown in the following table:
(NOK million)
31.12.2022
31.12.2021
Balance as of 1 January
264
264
Allowances for bad debt made during the period
45
27
Realised losses for the year
-30
-27
Balance as of 31 December
279
264
3.4 INVENTORIES
Inventories comprise the Group’s stock of raw materials used for production, finished goods and purchased 
goods for resale. Packaging to be used for sold goods is included. Any profit from intercompany sales has been 
eliminated.
(NOK million)
31.12.2022
31.12.2021
Raw materials
2 216
1 950
Finished goods 
2 757
2 216
Allowance for obsolete goods
-153
-132
Total
4 821
4 034
  Accounting policy
Inventories are stated at the lower of cost and net sales value. The cost incurred in bringing each product to 
its present location and condition is accounted for as follows: 
1)	The cost of raw materials is determined using the weighted average cost method as an overall principle for 
the Group. This involves the computation of an average unit cost by dividing the total cost of units by the 
number of units. 
2)	The cost of finished goods includes cost of direct materials and cost of conversion such as labour and a 
proportion of manufacturing overhead based on normal operating capacity, and excludes any borrowing 
costs. Change in cost of conversion is reported as manufacturing costs, see Note 2.3. 
  Estimate and judgement
Net sales value is the estimated selling price, less estimated costs of completion and the estimated costs 
necessary to make the sale. The Group’s products are sold in markets where there are limited observable 
market references available, requiring use of judgement in determining net sales value. Management has used 
its best estimate in setting net sales value for inventories. Allowances are made for inventories with a net sales 
value less than cost. 
2 841
2 830
2 877
4 034
4 821
2018
2019
2020
2021
2022
  Inventories (NOK million)
 In % of Revenue from contracts with customers
16 %
15 %
15 %
15 %
18 %
4 550
4 694
4 432
5 118
6 312
2018
2019
2020
2021
2022
  Accounts receivable (NOK million)
 In % of Revenue from contracts with customers
27 %
26 %
25 %
24 %
24 %
30    Jotun Annual Report 2022    Jotun Group
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Ageing of accounts receivable	 	
	
	
(NOK million)
31.12.2022
31.12.2021
Not due
4 666
3 799
Less than 30 days
811
587
30-60 days
399
288
60-90 days
178
168
More than 90 days
536
541
Allowance for bad debt
-279
-264
Account receivables
6 312
5 118
3.6 OTHER CURRENT LIABILITIES
Other current liabilities are other payables, such as unpaid government charges and taxes, unpaid wages and 
holiday pay and other accruals and provisions.
(NOK million)
31.12.2022
31.12.2021
Public charges and holiday pay
332
332
Received dividend from associates or joint ventures
367
303
Other accrued expenses
1 478
1 139
Total current provisions, ref. Note 3.7
206
206
Total
2 383
1 979
Prepaid dividends from associates or joint ventures are recognised as current liabilities until the final approval 
by the General Assembly in the following year. Other accrued expenses are related to commissions, bonuses to 
employees and other accrued expenses.
  Accounting policy
Accounts receivable are recognised at transaction price. The Group applies a simplified approach when 
accounting for expected credit losses. Therefore, the Group does not track changes in credit risk, but instead 
recognises a loss allowance based on lifetime expected credit losses at period end. Allowances for bad debt 
are based on an individual assessment of the trade receivable, considering all relevant information at the 
time of reporting, including historical, current and future information.
 
  Estimate and judgement
Allowances have been made for bad debt, which cover uncertain receivables to a reasonable extent. The 
Management continues to assess the credit risks in order to ensure the credit risk never exceeds the 
allowance for bad debt. For further description of credit risk, see Note 4.4.
3.7 PROVISIONS
Provisions consist mainly of product liability claims and environmental remediation costs related to specific cases 
or events that have occurred before the year end, and where the costs involved are not certain, but based on 
best estimates.
2022
(NOK million)
 Claims 
 Environmental 
 Other 
 Total 
Balance as of 1 January
228
105
61
394
Provisions arising during the year
23
35
120
179
Utilised
-37
-
-73
-110
Unused amounts reversed
-75
-35
-22
-132
Currency translation effects
1
-
-
1
Balance as of 31 December 
140
105
86
332
Current, ref. Note 3.6
130
-
76
206
Non-current
10
105
11
125
Total
140
105
86
332
2021
(NOK million)
 Claims 
 Environmental 
 Other 
 Total 
Balance as of 1 January
287
105
67
460
Provisions arising during the year
11
-
26
37
Utilised
-65
-
-21
-87
Unused amounts reversed
-6
-
-11
-17
Currency translation effects
-
-
1
1
Balance as of 31 December 
228
105
61
394
Current, ref. Note 3.6
168
-
38
206
Non-current
60
105
24
188
Total
228
105
61
394
Other provisions include obligations relating to ongoing restructuring programmes. The provision is expected to 
be utilised within the next year.
Product liability claims are reported as other operating expenses, ref. Note 2.3.
Jotun Group    Jotun Annual Report 2022    31
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Accounting policy
A provision for a liability is made when a legal or constructive obligation exists, payment is probable (more 
likely than not), and the liability is possible to estimate. If any of the recognition criteria are not met, the 
liability is considered a contingent liability and no provision shall be recorded, but instead described in Note 
3.8.
	
  Estimate and judgement
Product liability claims consist of various warranty claims arising from products sold. By nature, the related 
amounts and timing of any outflows are difficult to predict. Assumptions used to calculate provisions for 
product liability claims are based on technical assessments of product failures and the related expected 
repair costs for each specific case. It is expected that most of these costs will be payable in the next three 
years, and all will have been payable within five years after the reporting date.
The Group has recorded provisions for environmental liabilities at some currently or formerly owned, leased 
and third-party sites throughout the world. Pre-studies and analysis of relevant areas have been undertaken 
to reliably estimate the provisions that have been recognised. 
3.8 CONTINGENT LIABILITIES
Product liability claims and disputes 
Jotun Group is, through its ongoing business, involved in product liability claims cases and disputes in 
connection with the Group’s operations. Provisions have been made to cover the expected outcome of 
disputes insofar as negative outcomes are likely and reliable estimates can be made. In evaluating the size 
of the provisions, expected insurance cover is considered separately. Jotun acknowledges the uncertainty of 
the disputes but believes that these cases will be resolved without significant impact on the Group’s financial 
position.
Environmental matters
The Group is through its operations exposed to environmental and pollution risk. Production facilities 
and product storage sites have been inspected with respect to environmental conditions in the soil. For 
clean-up projects where implementation is probable and reliable cost estimates exist, provisions are made 
accordingly. Due to uncertainties inherent in the estimation process, it is possible that such estimates could 
be subject to change. In addition, further expenditures may arise as conditions at various sites have yet to be 
determined. The amount of such future costs is not determinable due to the unknown timing and extent of 
corrective actions which may be required. 
All of Jotun’s activities are carried out in accordance with local laws and regulations, and Jotun’s Health, 
Safety and Environment (HSE) requirements. These laws and regulations are subject to change, and such 
changes may require that the company make investments and/or incurs costs to meet more stringent 
emission standards or to take remedial actions related to e.g., soil contamination.
 
  Accounting policy
As stated in Note 3.7, contingent liabilities are potential liabilities that do not meet the recognition criteria 
for provisions and are hence not recorded in the balance sheet. IFRS accounting standards, however, require 
disclosure of such information in the notes.
3.9 CONTRACTUAL OBLIGATIONS AND GUARANTEES
Purchase obligations	
The Group’s contractual purchase obligations are mainly related to investments in new plants and buildings. 
There is a substantial investment programme ongoing in the Group. Out of the total ongoing investment 
programme, NOK 508 million is contractually committed capital expenditure (CAPEX) at year-end. These 
contractual commitments mainly relate to projects in Indonesia, Malaysia, and Qatar. For purchase of raw 
materials, there are no actual commitments for the Group. In general, these contracts can be terminated 
without significant penalties.
Other obligations	
Jotun A/S has guarantees covering tax withholding and other guarantees for its subsidiaries. These 
amounted to approximately NOK 1 212 million in 2022 (2021: NOK 403 million).
A subsidiary in China, Jotun Coatings (Zhangjiagang) Co. Ltd., has used bank drafts to pay some of its 
suppliers. The issuing bank(s) is obligated to make unconditional payment to the supplier (or bearer) on a 
designated date. If unforeseen events occur and the issuing bank(s) is not able to meet its obligation, then 
Jotun would still hold the final obligation towards its suppliers. Unsettled bank drafts totalling NOK 659 
million (2021: NOK 651 million) have been used as payment as of 31 December 2022.
32    Jotun Annual Report 2022    Jotun Group
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Capital Structure and 
Financial Items
55.0 % 
Equity / asset ratio, in %
2021: 53.2 %
0.4 
Net debt / EBITDA
2021: 0.5
22.5 % 
Return on capital employed
(NOK million)
2021: 21.7 %
Jotun’s capital structure and financial position 
strengthened during the year, mainly explained 
by strong earnings growth and good cash 
generation. The Group’s equity ratio at year-end 
was 55.0 per cent, well above the loan covenant 
requirement of minimum 25 per cent. Strong 
earnings growth and good cash generation 
lowered the Group’s leverage ratio (Net debt/
EBITDA) to 0.4, significantly below the loan 
covenant requirement of maximum 4.0. 
With its global footprint in operations, 
investments and financing, Jotun is exposed 
to financial risks related to currency exchange 
rates, interest rates, raw material prices and 
customer credit. These risks are primarily 
managed through the Group companies’ normal 
operations and in accordance with the Group’s 
Treasury policy. 
This section includes 
notes related to 
Jotun’s capital 
structure and 
financial items, 
including financial 
risks.
Section 04
Jotun Group    Jotun Annual Report 2022    33
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(NOK million) 
 Currency 
 31.12.2022 
 31.12.2021 
Non-current interest-bearing debt
Bond 2018-24 (NIBOR+0.9 %)
NOK
650
650
Bond 2019-23 (NIBOR+0.93 %)
NOK
-
600
Bond 2021-26 (NIBOR+0.7 %)
NOK
300
300
Bond 2021-28 (NIBOR+0.9 %)
NOK
350
350
Bank debt NIB 2013-24 (USD LIBOR+1.2 %), unsecured
USD
91
245
Other Bank debt, unsecured
331
406
Other Bank debt, secured
51
46
Total excl. lease liability
1 772
2 597
Lease liability, ref. Note 5.4
520
399
Total
2 292
2 995
Current interest-bearing debt
Bond 2018-22 (NIBOR+0.7 %)
NOK
-
640
Bond 2019-23 (NIBOR+0.93 %)
NOK
600
-
Bank debt NIB 2013-24 (USD LIBOR+1.2 %), unsecured
181
163
Other bank debt, unsecured
1 794
1 255
Other bank debt, secured
93
85
Total excl. lease liability
2 668
2 143
Lease liability, ref. Note 5.4
128
123
Total
2 796
2 266
Total interest-bearing debt excl. lease liability
4 440
4 740
Total lease liability, ref. Note 5.4
648
522
Total interest-bearing debt
5 088
5 261
Non-current interest-bearing receivables
85
67
Cash and cash equivalents 
3 312
3 388
Net interest-bearing debt
1 690
1 807
4.1 INTEREST-BEARING DEBT
The Group’s main sources of financing are from the Norwegian Bond market and bilateral bank facilities. 
Certificate loans are also used as a source of liquidity. The time to maturity for new loans and credit facilities 
is normally 3-5 years. 
Bond funding in the Group has remained unchanged during 2022. The loan from Nordic Investment Bank 
(NIB) of USD 120 million is maintained and semi-annual instalments began in 2018. 
As of 31 December 2022, there were no drawings on the committed credit facilities.
Maturity profile interest-bearing debt and unutilised credit facilities
(NOK million)
 Total 
< 1 year
1-2 years
2-3 years 3-4 years
4-5 years
 >5 years 
Total interest-bearing debt excl. lease liability
2022
4 440
 2 668 
 841 
 75 
 351 
 51 
 455 
2021
4 740
 2 143 
 861 
 763 
 16 
 300 
 657 
Unutilised credit facilities
2022
2 515
600
600
600
300
315
100
2021
2 000
400
-
600
600
300
100
Change in interest-bearing debt balance
  Non-cash changes
(NOK million)
31.12.2021
Cash
Reclass. & 
other
FX
31.12.2022
Non-current interest-bearing debt 
2 995
69
-780
8
2 292
Current interest-bearing debt
2 266
-519
1 024
24
2 796
2 526
2 581
1 514
1 807
1 690
2018
2019
2020
2021
2022
  Net interest bearing debt (NOK million)
 Net debt/EBITDA
1.3
0.8
0.4
0.5
0.4
34    Jotun Annual Report 2022    Jotun Group
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4.2 CASH AND CASH EQUIVALENTS 
(NOK million)
2022
2021
Cash deposits
 2 692 
 2 621 
Short-term investments
 621 
 767 
Total
 3 312 
 3 388 
Cash deposits in banks are attributable to the Group’s cash pool arrangement and local bank accounts held 
by the respective subsidiaries. Only subsidiaries owned 100 per cent by the Group are participants in the 
cash pool. The net cash position in the Group’s cash pool per 31 December 2022 was NOK 658 million 
(2021: NOK 372 million). 
Surplus cash in subsidiaries not participating in the cash pool is accessible through dividend distribution 
and/or repayment of debt to Jotun A/S.  
  Accounting policy
Cash includes cash in hand and cash deposits in banks. Cash equivalents are short-term liquid investments 
which are convertible into a known amount of cash on short notice and have a maximum term to maturity of 
three months.
4.3 NET FINANCIAL ITEMS
  
The Group has net financial items mainly comprising net interest expenses, foreign exchange gains and losses 
and fair value changes of the Group’s financial instruments related to hedging.
Financial income
(NOK million)
2022
2021
Fair value changes financial instruments
 12 
 - 
Interest income
 45 
 21 
Dividend
 3 
 3 
Net foreign exchange gain
 67 
 43 
Hyperinflation Adjustment
4
-
Other financial income
 18 
 6 
Total
 149 
 74 
Financial cost
(NOK million)
2022
2021
Fair value changes financial instruments
-
-34
Interest costs
-397
-168
Net foreign exchange loss
-232
-67
Other financial costs
-65
-53
Total
-694
-322
Net financial items
-546
-248
Foreign exchange gains and losses related to forwards, options and swaps in Jotun A/S have affected net finan­
cial items with the following amounts:
(NOK million)
2022
2021
Unrealised gain/loss (-)
12
-34
Realised gain/loss (-)
-130
20
Unrealised part is reported as fair value changes financial instruments, while the realised part is reported as 
foreign exchange gain or loss.
1 012
1 903
2 956
3 388
3 312
2018
2019
2020
2021
2022
  Cash and Cash equivalents
Jotun Group    Jotun Annual Report 2022    35
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4.4 FINANCIAL RISK MANAGEMENT
Financial risks include raw material price risk, foreign currency risk, customer credit risk, interest rate risk 
and liquidity risk managed by the Group Treasury according to policy.
Raw material price risk
Raw material risk is the risk of fluctuating raw material prices affecting cost of goods sold, which represent 
more than 60 per cent of total costs. The main raw materials purchased by the Group are described in Note 
2.1. Currently, the Group does not hedge this type of risk as availability of effective hedging instruments 
is limited. As increases in raw material prices cannot be compensated for immediately through increased 
product prices, profits will be negatively impacted for a period of time. The time horizon for Group-wide 
implementation of price increases is generally 9-12 months.
Cost of goods sold was NOK 15.9 billion in 2022 of which NOK 9 billion were costs for the top five raw 
materials. A ten per cent increase in commodity prices will result in an increase in cost of goods sold by NOK 
1.6 billion.
Foreign currency risk
The Group’s consolidated financial statements are exposed to a currency risk related to translation of local 
currencies to NOK. In 2022, sales and operating profit outside Norway were NOK 23.8 billion and NOK 3.5 
billion respectively. A ten per cent appreciation in NOK will result in a reduction in sales of NOK 2.4 billion and 
operating profit of NOK 0.3 billion. Excluding currency effects, sales growth for the Group would have been 
23 per cent compared to 22 per cent in reported rates. Conversely, operating profit growth would have been 
reduced from 19 per cent to 18 per cent.
In addition to share capital, Jotun A/S finances the majority of its subsidiaries with intercompany loans 
in local currencies. Intercompany loans for which settlement is neither planned nor likely to occur in 
the foreseeable future are accounted for as part of the net investment in foreign operations. Exchange 
differences are recognised initially in other comprehensive income and reclassified from equity to profit or 
loss on disposal of the net investment. 
Jotun A/S has a USD 27.8 million loan and a rolling USD 28 million currency swap which serves as a hedge 
of net investment in foreign operations. Gains or losses on the hedging instrument related to the effective 
portion of the hedge are recognised in other comprehensive income while any gains or losses relating to the 
ineffective portion are recognised in the income statement.
A gain of NOK 54 million on hedge of net investments was recognised in other comprehensive income in 
2022 (2021: loss NOK 15.1 million).  
Credit risk
The management of customer credit risk related to accounts receivable and other operating receivables is 
handled as part of the business risk.
The Group’s credit risk is mainly related to markets with generally high Days Sales Outstanding (DSO). 
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures 
and controls.
Outstanding customer receivables are regularly monitored based on defined credit limits, and credit risk 
assessments are performed.
There is no significant concentration of credit risk in respect of single counterparts. Some groups of 
counterparts can be viewed as significant: Shipyards, shipowners, real estate developers and some larger 
retail chains in Scandinavia. 
The need for bad debt allowances is analysed on an individual customer basis. The maximum exposure to 
credit risk at the reporting date is the carrying value of each ageing class of accounts receivable disclosed 
in Note 3.5. Customer receivables are unsecured, which means that customers are not required to post 
collateral.
Given the geographical distribution of customers with few large single accounts, credit risk in the Group 
is viewed as low and well diversified. The Group’s customers are spread across several jurisdictions and 
industries and operate in largely independent markets.
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates to the Group’s long-term debt 
with floating interest rates. Jotun manages its interest rate risk by monitoring the impact on net profit. The 
Group has a relatively low leverage ratio. Consequently, the majority of the debt is with floating interest rate 
apart from lease liability (ref. Note 4.1).
The Group has long-term interest-bearing debt of NOK 1 772 million with floating interest rate. A three 
percentage point increase in interest rate will affect the financial items by NOK 53 million.
Funding and liquidity risk
It is the Group’s policy that long-term debt and credit facilities shall have a minimum average time to 
maturity of two years. In addition, the target is to maintain a strategic financing reserve equivalent to five per 
cent of the Jotun’s operating revenue.
The Group estimates its future cash flow by forecasting. Cash flow from operations has seasonal cycles, 
especially due to the sales of exterior decorative paints in Scandinavia. Through the first months of the 
year, the Group has substantial build-up of working capital in preparation for sales during spring and 
summer season. This is an expected cyclical movement and is taken into account when planning the Group’s 
financing. 
Other drivers of the liquidity development are investments in new factories and changes in the working 
capital in the individual companies. Jotun A/S repatriates cash through both ordinary and interim dividends 
based on target equity ratios for its subsidiaries.
36    Jotun Annual Report 2022    Jotun Group
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Other Disclosures
1 024
Income tax expense
(NOK million)
2021: 779
32.1 % 
Effective tax rate based 
on profit before tax
2021: 27 %
855.0 
Proposed dividend
(NOK million)
2021: 769.5
Section 05
This section includes 
other statutory 
notes not related to 
previous sections.
Higher earnings contributed to an increase 
in income tax expense in 2022. In addition, a 
provision for taxes in Norway related to dividends 
received from Saudi led to an extraordinary 
tax expense, negatively impacting the Group’s 
effective tax rate. The tax claim is disputed. 
The proposed dividend represents an increase 
of 11 % compared to 2021 and is equivalent to 
41.6 % of the Group’s profit for the year less non-
controlling interests. 
Jotun Group    Jotun Annual Report 2022    37
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5.1 TAXATION
  
Income taxes refer to taxation of the profits of the different companies in the Group. Value added tax, property 
tax, custom duties and similar indirect taxes are not included in the tax expense. Income taxes are computed 
based on profit before tax and broken into current taxes and changes in deferred taxes. Deferred tax assets and 
liabilities are the result of temporary differences between financial and tax accounting.
The major components of the income tax expense are:
(NOK million)
2022
2021
Current income tax charge:
Tax payable
1 062
789
Deferred tax:
Relating to original and reversal of temporary differences
-37
-10
Income tax expense reported in the income statement
1 024
779
Reconciliation of Norwegian nominal statutory tax rate to effective tax rate
The difference between the Group’s nominal and effective tax rate is mainly due to non-deductible expenses, 
non-refundable withholding taxes on dividends and tax losses carried forward from operations without 
recognition of deferred tax assets. In addition, the tax expense is driven by local income tax from associates 
where taxes are liable by Jotun A/S as a foreign shareholder.
In the following table, reported income tax is reconciled with the calculated tax expense based on the Norwegian 
tax rate of 22 per cent (22 per cent in 2021). The main components are specified. 
(NOK million)
2022
2021
Profit before tax as reported in the income statement
3 191
2 890
Share of profit of associated companies and joint ventures net of tax
-729
-496
Profit before tax excluding associates and JV's
2 462
2 394
Income taxes at statutory tax rate
22 %
542
22 %
527
Non refundable foreign withholding tax
4 %
106
3 %
78
Corrections previous years
5 %
121
1 %
21
Tax effect related to equity accounted companies
5 %
112
3 %
64
Non deductible expenses and non taxable income
2 %
48
2 %
41
Tax inflation adjustments
2 %
46
0 %
-
Unused tax losses not recognised as deferred tax assets
3 %
79
2 %
54
Difference between tax rates in Norway and abroad
-1 %
-29
0 %
-6
Total income tax expense
1 024
779
Effective tax rate excluding profit from associates and JV's
42 %
33 %
Effective tax rate based on profit before tax
32 %
27 %
Specification of total tax payable
(NOK million)
2022
2021
Tax payable for the year
1 062
789
Prepaid taxes
-659
-497
Withholding taxes receivable
-130
-103
Other tax payable
125
37
Total tax payable
397
227
Specification of deferred tax
Deferred tax is generally recognised for all temporary differences. Deferred tax assets for temporary differences 
and tax loss carried forward are recognised to the extent that it is probable that future taxable income will be 
available to utilise the credits. Deferred tax liabilities comprise the Group’s tax liabilities that are payable in the 
future.
(NOK million)
2022
2021
Non-current assets
118
423
Current assets
-387
-330
Liabilities
-1 109
-1 330
Tax loss carried forward
-123
-110
Net temporary differences and tax loss carried forward 
-1 501
-1 347
Net deferred tax presented in the consolidated statement 
of financial position
Deferred tax assets
410
386
Deferred tax liabilities
-107
-73
Net deferred tax
303
313
Specification of tax loss carried forward and unused tax credits
(NOK million)
2022
2021
2022 
73
2023
66
20
2024
137
48
2025
110
47
2026
184
573
2027 and after
977
 - 
Without expiration
472
698
Total loss carried forward
1 945
1 459
Calculated nominal tax effect of tax loss carried forward
514
434
Valuation allowance
-484
-404
Deferred tax assets recognised from tax loss carried forward
30
31
Tax loss carried forward relates to subsidiaries with a history of losses that may not be used to offset taxable 
income elsewhere in the Group. Jotun’s operations in the US, Brazil, Morocco, Spain, South Africa and the 
Philippines have substantial tax reducing temporary differences and tax losses carried forward that have not 
been recognised due to uncertainty about future taxable profit available to utilise the credits.
38    Jotun Annual Report 2022    Jotun Group
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Accounting policy
Current income tax
Current income tax assets and liabilities are measured at the amount that is expected to be paid to or 
recovered from the tax authorities. The current and deferred income tax is calculated based on tax rates 
and tax laws that have been enacted or substantively enacted, in the countries where the Group operates 
and generates taxable income. Management periodically evaluates positions taken in the tax returns with 
respect to situations in which applicable tax regulations are subject to interpretation and establishes 
provisions where appropriate.
Deferred tax
Deferred tax assets and deferred tax liabilities are calculated on all differences between the book value 
and tax value of assets and liabilities. Deferred tax assets and deferred tax liabilities are recognised at their 
nominal value and classified as non-current liabilities and non-current assets in the balance sheet. Deferred 
tax liabilities and deferred tax assets are offset as far as possible as permitted by taxation legislation and 
regulations. Deferred tax assets are recognised for all unused tax losses and temporary differences to the 
extent that it is probable that taxable profit will be available against which losses and temporary differences 
can be utilised. 
  Estimate and judgement
Uncertainties exist with respect to determining the Group’s deferred tax assets and deferred tax liabilities. 
Significant management judgement is required to determine the amount of deferred tax assets that can be 
recognised, based upon the likely timing and level of future taxable profits, together with future tax planning 
strategies.
Jotun’s widespread business operations expose us to several tax regimes and their interaction. Tax 
authorities in different jurisdictions may challenge the calculation of taxes payable from prior periods, 
which results in changes to income tax expense in the period of change, as well as interest and penalties. 
Management evaluates, among other factors, the degree of probability of an unfavourable outcome and 
the ability to make a reasonable estimate of the amount of loss. Unanticipated events or changes in these 
factors may require the Group to accrue for a matter that has not been previously accrued for because it was 
not considered probable.
Jotun is involved in several tax disputes with tax authorities, of which the outcomes are subject to significant 
uncertainties.
 
In 2022, Jotun A/S received a formal claim from the Norwegian tax authorities for the years 2017 and 
onwards related to taxation of dividends distributed from our companies in Saudi Arabia. Over the 
years Jotun A/S has reported the dividends from Saudi Arabia as free of tax in accordance with the 
Norwegian participation exemption model. The Norwegian tax authorities consider Saudi Arabia to be 
a low tax jurisdiction, and has consequently deemed the dividends as taxable income for Jotun A/S. The 
corresponding tax cost for the years 2017 – 2022 has been recognised accordingly. Jotun disagrees with 
the ruling and has disputed the claim.
  Income tax expence (NOK million)
 Eﬀective tax rate based on proﬁt before tax
40 %
25 %
25 %
27 %
32 %
442
529
780
779
1 024
2018
2019
2020
2021
2022
Jotun Group    Jotun Annual Report 2022    39
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Summary of pension costs
(NOK million)
2022
2021
Pension costs defined contribution plans and other severance schemes
163
174
Pension costs defined benefit plans
13
18
Total pension costs recognised in the income statement, ref. Note 2.2
176
192
Actuarial gain / loss (-) recognised in other comprehensive income (net of tax)
28
-8
The Group has defined benefit plans in a limited number of countries, including Norway, the UK, Greece, Türkiye, 
Indonesia and in certain countries in South East Asia and the Middle East. In Norway, the defined benefit 
schemes were replaced by defined contribution plans in 2004, and the defined benefit plan in the UK was closed 
for new members in 2012. 
Defined benefit plans in Norway account for around 75 per cent of the Group’s net pension obligation as of 
31 December 2022. In Norway, net pension obligations are primarily related to previous early retirement 
schemes for the Group’s senior executives. In certain countries in South East Asia and the Middle East, such as 
Indonesia, Thailand and Oman, there are pension schemes based on a final salary principle in accordance with 
local regulations. These are included in net pension obligations.
Other severance schemes comprise mainly obligations related to operating pension schemes for employees in 
the Norwegian companies with an annual basic salary and pension base exceeding 12 times the basic amount 
(G). This accounts for 80 per cent of the other severance scheme obligation.
Actuarial assumptions
     Norway
     Indonesia
2022
2021
2022
2021
Discount rate in %
2.7
1.1
7.3
7.3
Expected return in %
2.7
1.1
6.61
3.75
Wage adjustment in %
4.50
3.50
6.0
6.0
Inflation / increase in social security basic amount (G) in %
3.50
2.3
4.6
3.1
Pension adjustment in %
1.6-3.75
1.1-2.5
 - 
-
5.2 PENSIONS AND OTHER LONG-TERM EMPLOYEE BENEFITS
  
The Group companies provide various retirement plans in accordance with local regulations and practices in the 
countries in which they operate.
The majority of the Group’s pension plans are defined contribution plans, whereby the company’s obligation is 
limited to annual contributions to the employees’ pension plans. The Group also has a few remaining defined 
benefit pension plans with net pension obligation. 
Schemes with net pension obligations
   Pension plan 
assets
  Defined benefit 
     obligations
Net pension 
obligations
(NOK million)
2022
2021
2022
2021
2022
2021
Balance as of 1 January
453
471
-624
-611
-171
-140
Translation difference at the beginning of the 
period
-1
12
-
-12
-1
-
Recognised in the income statement
Pension earnings for the year
 - 
-
-6
-12
-6
-12
Interest income / cost (-)
 - 
-
-18
-13
-18
-13
Expected return on pension plan assets
10
7
 - 
 - 
10
7
Recognised in the Income Statement
10
7
-23
-25
-13
-18
Other movements
-113
-37
171
25
57
-12
Net pension obligation defined benefit plans
349
453
-477
-624
-128
-171
Other severance schemes
 - 
-
-122
-125
-122
-125
Balance as of 31 December 
349
453
-599
-749
-251
-296
Breakdown of net pension liabilities in funded and unfunded schemes
(NOK million)
31.12.2022
31.12.2021
Present value of funded pension obligations
-329
-491
Pension plan assets
349
453
Net funded pension obligations
20
-38
Present value of unfunded pension obligations
-270
-257
Capitalised net pension assets / liabilities (-)
-251
-296
Pension plan assets
Pension plan assets are mainly in bonds and shares. The estimated return will vary depending on the composition of 
the various classes of assets. Contributions to pension plan assets during 2022 are expected to be approximately 
NOK 6.3 million.
Breakdown of pension plan assets (fair value)
31.12.2022
31.12.2021
Cash and cash equivalents in %
8.2
4.3
Bonds in %
79.7
74.8
Shares in %
5.5
15.6
Property in %
6.6
5.3
Total pension plan assets
100.0
100.0
40    Jotun Annual Report 2022    Jotun Group
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Accounting policy
Defined contribution plans 
The pension cost related to the Group’s defined contribution plans is equal to the annual contribution made 
to the employee’s individual pension accounts in the accounting period. Annual contributions correspond to 
an agreed percentage of the employee’s salary in accordance with local pension arrangements. In Norway, 
the rate is five per cent of annual basic salary, limited upwards to twelve times the social security basic 
amount. In addition, 18.1 per cent contribution is made for annual basic salary between 7.1-12 times the 
social security basic amount. The pension contributions are expensed when incurred. The return on the 
pension funds will affect the size of the employees’ pension, and the risk of returns lies with the employees.
Defined benefit plans
In the defined benefit plans, the Group companies are responsible for paying an agreed pension to the 
employee based on his or her final pay. Defined benefit plans are valued at the present value of accrued 
future pension obligations at the end of the reporting period. Pension plan assets are valued at their fair 
value. The capitalised net liability is the sum of the accrued pension liability minus the fair value of the 
associated pension fund asset. 
Actuarial gains and losses are recognised in other comprehensive income. Introduction of new or changes 
to existing defined benefit plans that will lead to changes in pension liabilities are recognised in the income 
statement as they occur. Gains or losses linked to changes or terminations of pension plans are also 
recognised in the income statement when they arise. 
Other severance schemes
Other severance schemes comprise mainly of obligations related to pension schemes for employees in the 
Norwegian companies with an annual basic salary exceeding 12 times the basic amount (G). In addition, 
minor statutory obligations to employees in a few other countries are also included. Obligations related to 
other severance schemes are recognised as non-current liabilities.
  Estimate and judgement
Defined benefit plans are calculated based on a set of selected financial and actuarial assumptions. Changes 
in parameters such as discount rates, future wage adjustment, etc. could have a substantial impact on the 
estimated pension liability. Similarly, changes in selected assumptions for the return on pension assets could 
affect the amount of the pension assets. The Group will not be materially affected by a reasonable expected 
change in key assumptions. 
All assumptions are reviewed at each reporting date. 
5.3 REMUNERATIONS
Remuneration of the President & CEO	
(NOK thousand)
Ordinary salary
Bonus
Benefits in kind
Pension cost
Total
President & CEO
 7 389 
2 928 
 327 
 130 
 10 774 
The President & CEO is part of a pension scheme that includes a mutual opportunity to discontinue employment 
in whole or in part up to five years earlier than a stipulated retirement age of 67 years.
The Group has no obligation to give the President & CEO or the Chairman of the Board special remuneration 
upon discontinuance or change of employment or office. Should the President & CEO’s employment discontinue, 
his contract has a clause stipulating that a one-year “competition quarantine” may be imposed with compensa­
tion. The President & CEO has a notice period of six months.
The Group has not given any loans or guarantees to the President & CEO, the Chairman of the Board, or to any 
shareholders or members of Group Management, the Board of Directors or Corporate Assembly.
Remuneration of the Board of Directors and Corporate Assembly	
	
	
(NOK thousand)
31.12.2022
31.12.2021
Board of Directors
2 760
2 730
Corporate Assembly
183
180
Total 
2 943
2 910
Shares controlled by members of the Board of Directors and the Group Management are specified in Note 5.8.
External auditor remuneration	
(NOK thousand)
31.12.2022
31.12.2021
Statutory audit
16 061
14 761
Other attestation services
158
151
Tax services
2 593
2 979
Other services
2 106
1 658
Total 
20 918
19 549
Jotun Group    Jotun Annual Report 2022    41
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5.4 LEASES
The Group has lease contracts for various assets (land, buildings, machinery and equipment and transport 
vehicles) used in its operations. 
  Accounting policy
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract 
includes a right to control the use of an identified asset for a period of time in exchange for a financial 
consideration.
The Group applies a single recognition and measurement approach for all leases. The Group recognises 
lease liabilities for payment obligations for leases and right-of-use assets representing the value of the right 
to use the underlying assets.
Right-of-Use assets
The Group recognises right-of-use assets at the date the underlying asset is available for use. Right-of-use 
assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for 
any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities 
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less 
any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of 
the lease term and the estimated useful lives of the assets. When assessing the life of the leases, the Group 
considers the non-cancellable lease term and options to extend the lease where Jotun is reasonably certain 
to extend. Extension options are assessed for all lease’s premises. For other assets, the life is equal to the 
non-cancellable lease period and extensions are not considered for these. 
Right-of-use assets are also subject to impairment, using the same method as for Property, plant and 
equipment, see Note 3.3. 
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value 
of lease payments to be made over the lease term. The lease payments include fixed payments (including in 
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an 
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also 
include the exercise price of a purchase option reasonably certain to be exercised by the Group. Variable 
lease payments that do not depend on an index or a rate are recognised as operating expenses in the period 
in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the 
lease commencement date because the interest rate implicit in the lease is not readily determinable. After 
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and 
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured 
if there is a modification, a change in the lease term or a change in the lease payments. The Group’s lease 
liabilities are included in interest-bearing debt, see Note 4.1.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to all short-term leases, which are leases 
that have a lease term of 12 months or less from the commencement date. It also applies the lease of low-
value assets recognition exemption to leases of office equipment that are considered to be low value. Lease 
payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line 
basis over the lease term.
Cash flow
The Group has classified the principal portion of lease payments within financing activities and the interest 
portion within operating activities in the statement of cash flow. 
  Estimate and judgement
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental 
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have 
to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of 
a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what 
the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as 
for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the 
terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). 
The Group estimates the IBR using observable inputs (such as market interest rates) when available and is 
required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
 
42    Jotun Annual Report 2022    Jotun Group
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Right-of-Use assets:
(NOK million)
Land
Buildings
Machinery, 
vehicles and 
equipment
Total
Cost
Balance as of 1 January 2021
 315 
 297 
 239 
 852 
Additions
 20 
 125 
 81 
 226 
Disposals
 0 
-3 
-7 
-10 
Reclassifications
-1 
 1 
-1 
-1 
Foreign currency translation effect
 5 
-6 
-12 
-12 
Balance as of 31 December 2021
339
414
301
1 055
Additions
-21
239
66
284
Disposals
-
-37
-42
-79
Reclassifications
25
1
1
27
Hyperinflation adjustments
-
4
14
18
Foreign currency translation effect
20
18
14
51
Balance as of 31 December 2022
362
639
354
1 356
Amortisation and impairment
Balance as of 1 January 2021
-17 
-120 
-115 
-252 
Depreciation
-10 
-71 
-67 
-148 
Depreciation on disposals
-0 
 2 
 6 
 7 
Reclassifications
 1 
 1 
-1 
 1 
Foreign currency translation effect
- 
 1 
 4 
 5 
Balance as of 31 December 2021
-26
-186
-174
-387
Depreciation
-11
-86
-67
-164
Depreciation on disposals
-
19
28
46
Reclassifications
1
-1
-1
-1
Hyperinflation adjustments
-
-2
-5
-6
Foreign currency translation effect
-1
-10
-11
-22
Balance as of 31 December 2022
-37
-266
-231
-534
Net book value
Balance as of 31 December 2022
325
373
123
821
Balance as of 31 December 2021
313
228
127
668
Lease liability as of 31 December 
(NOK million)
31.12.2022
31.12.2021
Non-current
520
 399 
Current
128
 123 
Total
648
 522 
Undiscounted lease liabilities and maturity of cash outflows	
(NOK million)
31.12.2022
31.12.2021
Less than 1 year
156
 147 
1-2 years
114
 104 
2-3 years
83
 69 
3-4 years
56
 48 
4-5 years
40
 35 
More than 5 years
483
 340 
Total undiscounted lease liabilities
932
 742 
Amounts recognised in the consolidated income statement: 
(NOK million)
2022
2021
Leases
Depreciation of Right-of-Use assets
164
 148 
Impairment of Right-of-Use assets
-
 - 
Interest expense
32
 26 
Other lease expenses recognised in the income statement:
Expenses relating to short-term leases
18
 14 
Expenses relating to lease of low value assets
10
 8 
Expenses related to variable payments
23
 24 
Rent concession - Covid-19 pandemic
-
 - 
Total
248
 220 
Total cash outflow relating to lease of Right-of-Use assets was NOK 180 million for the period.
The portfolio of short-term leases does not vary significantly from year to year.
Jotun Group    Jotun Annual Report 2022    43
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5.5 ASSOCIATES AND JOINT VENTURES 
  
The Group has investments in associates in the Middle East and joint ventures in North East Asia, involved in 
production and sales of products within all the Group’s four segments. See Note 1.1 for accounting policy. 
See Note 5.7 to the Parent Company Financial Statements for more information.
Overview of changes in investments in associates and joint ventures 
31.12.2022
31.12.2021
(NOK million)
Associates
Joint 
ventures
Total Associates
Joint 
ventures
Total
Carrying amount 1 January
845
575
1 419
826
772
1 598
Share of profit and loss
598
131
729
487
9
496
Exchange differences
101
25
125
42
10
53
Dividend
-540
-60
-600
-510
-217
-727
Carrying amount 31 December
1 004
670
1 674
845
575
1 419
 
Summary of financial information for the associates and joint ventures based on 100 per cent figures:
31.12.2022
31.12.2021
(NOK million)
Associates
Joint 
ventures
Total Associates
Joint 
ventures
Total
Non-current assets
 925 
 1 106 
2 031
875
1 157
2 032
Current assets
 2 761 
 3 061 
5 822
2 300
2 089
4 389
Total assets
3 687
4 167
7 853
3 175
3 247
6 421
Equity
 2 655 
 1 728 
4 383
2 249
1 499
3 748
Non-current liabilities
 235 
 92 
327
197
137
334
Current liabilities
 797 
 2 347 
3 144
729
1 610
2 340
Total equity and liabilities
3 687
4 167
7 853
3 175
3 247
6 421
Revenues
6 191
5 024
11 215
4 969
3 054
8 023
Revenues - Jotun entities*
808
1 686
2 494
626
1 351
1 977
Total revenues
7 000
6 709
13 709
5 595
4 405
10 000
Profit / (loss) for the year
1 479
261
1 740
1 221
20
1 241
* Subsidiaries, associates and joint ventures. 
384
497
746
496
729
2018
2019
2020
2021
2022
  Share of proﬁts from associated companies and join ventures (NOK million)
 Share of Operating proﬁt (In %)
28 %
21 %
21 %
16 %
20 %
1 533
1 486
1 598
1 419
1 674
2018
2019
2020
2021
2022
  Investments in associated companies and joint ventures (NOK million)
 In % of Total assets
9 %
8 %
8 %
6 %
6 %
44    Jotun Annual Report 2022    Jotun Group
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5.6 RELATED PARTIES
  
Two parties are deemed to be related if one party can influence the decisions of the other.
During 2022, goods and services were purchased and sold to various related parties in which the Group holds 
a 50 per cent or less equity interest. Investments in associates and joint ventures are presented in Note 5.5, 
shareholder and dividend information are presented in Note 5.8. 
The transactions between related parties are mainly sales and purchases of finished goods. Joint expenses are 
distributed in accordance with agreed cost contribution arrangements.
Outstanding balances at the year-end are unsecured and there have been no guarantees provided or received 
for any related party receivables or payables. As of 31 December 2022, the Group has not recorded any impairment 
of receivables relating to amounts owed by related parties (2021: NOK 0). This assessment is undertaken each 
financial year by examining the financial position of the related party and the market in which the related party 
operates. The amount of these transactions is shown in the table below.
2022
(NOK million)
Sales of 
goods to
Purchases 
of goods 
from
Other 
revenue 
from
Loans to
Interests 
on loan to
Other 
current 
liabilities
Trade and 
other 
receivables
Joint ventures
1 088
644
212
-
-
140
265
Associates
206
681
213
2
-
208
112
Total
1 294
1 325
425
2
-
347
377
2021
(NOK million)
Sales of 
goods to
Purchases 
of goods 
from
Other 
revenue 
from
Loans to
Interests 
on loan to
Other 
current 
liabilities
Trade and 
other 
receivables
Joint ventures
750
566
143
-
1
137
178
Associates
149
523
174
1
-
165
83
Total
899
1 089
316
1
1
302
261
Details on remuneration and shares held for the Board of Directors and Group Management is described in 
Notes 5.3 and 5.8. Besides remuneration and shares, the Group has not identified any transactions with the 
Board of Directors or key management personnel during 2022.
5.7 SUBSIDIARIES
  
For the list of subsidiaries included in the consolidated accounts, refer to Note 5.6 to the Parent Company Finan­
cial Statements.
Jotun Group    Jotun Annual Report 2022    45
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5.8 SHARE CAPITAL AND SHAREHOLDER INFORMATION
The share capital in Jotun A/S as of 31 December 2022 consists of the following share classes:
(NOK)
Quantity
Face value
Share capital
A-shares
114 000
300
34 200 000
B-shares
228 000
300
68 400 000
Total
342 000
300
102 600 000
At the general meeting, each A-share has ten votes and each B-share has one vote. There are no changes from 
last year.
Ownership structure
The number of shareholders as of 31 December 2022 was 934. The largest shareholders were:
Shareholders
A-shares
B-shares
Total
Ownership
Voting 
interest
Paint Holding AS
42 204
103 446
145 650
42.6 %
38.4 %
Odd Gleditsch AS
11 505
37 880
49 385
14.4 %
11.2 %
Mattisberget AS
29 523
682
30 205
8.8 %
21.6 %
Leo Invest AS
3 008
7 022
10 030
2.9 %
2.7 %
Abrafam Holding AS
3 387
3 666
7 053
2.1 %
2.7 %
Bog Invest AS
0
6 850
6 850
2.0 %
0.5 %
Bjørn Ekdahl
2 324
3 381
5 705
1.7 %
1.9 %
ACG AS
0
5 553
5 553
1.6 %
0.4 %
Hejo Holding AS
0
5 257
5 257
1.5 %
0.4 %
Elanel AS
3 027
2 113
5 140
1.5 %
2.4 %
Kofreni AS
131
4 114
4 245
1.2 %
0.4 %
Bjørn Ole Gleditsch
26
3 689
3 715
1.1 %
0.3 %
Pina AS
0
3 443
3 443
1.0 %
0.3 %
Conrad Wilhelm Eger
1 172
2 155
3 327
1.0 %
1.0 %
Vida Holding AS
581
2 652
3 233
0.9 %
0.6 %
Jill Beate Gleditsch
0
3 171
3 171
0.9 %
0.2 %
Anne Cecilie Gleditsch
5
3 061
3 066
0.9 %
0.2 %
Nils Johannes Ekdahl
2 322
645
2 967
0.9 %
1.7 %
Bengt Erik Ekdahl
2 322
188
2 510
0.7 %
1.7 %
Oaknut Invest AS
1 000
1 503
2 503
0.7 %
0.8 %
Total 20 largest 
102 537
200 471
303 008
88.6%
89.6 %
Total others
11 463
27 529
38 992
11.4%
10.4 %
Total number of shares
114 000
228 000
342 000
100.0 %
100.0 %
Shares directly controlled by members of the Board of Directors, Corporate Assembly and Group Management 
and / or related parties
Name
Office
A-shares
B-shares
Total
Odd Gleditsch d.y.
Chairman of the Board
27
6 737
6 764
Einar Abrahamsen
Member of the Board
3 387
3 674
7 061
Nicolai A. Eger
Member of the Board
1 112
4 301
5 413
Terje Andersen
Member of the Board
2
2
Bjørn Ekdahl
Chairman of the Corporate Assembly
2 324
3 631
5 955
Bjørn Ole Gleditsch 
Member of the Corporate Assembly
26
10 539
10 565
Anne Cecilie Gleditsch
Member of the Corporate Assembly
5
8 615
8 620
Kornelia Eger Foyn-Bruun
Member of the Corporate Assembly
100
274
374
Nils Andreas Arnesen
Member of the Corporate Assembly
157
522
679
Terje V. Arnesen
Member of the Corporate Assembly
1
1
Jens-Erlend Trana
Member of the Corporate Assembly
2
2
Morten Fon
President & CEO
9
21
30
Bård K. Tonning
GEVP Decorative Paints
5
5
Vidar Nysæther
GEVP & CFO
20
20
There are no options for share acquisitions.
Dividend paid and proposed 
Declared and paid during the year
2022
2021
Total dividend on ordinary shares
769 500 000
598 500 000
Dividend per share
2 250
1 750
Proposed for approval at the Annual General Meeting	
2022
2021
Total dividend on ordinary shares
855 000 000
769 500 000
Dividend per share
2 500
2 250
Dividend is deducted from equity and recognised as a liability after approval by the Annual General Meeting. 
46    Jotun Annual Report 2022    Jotun Group
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5.9 DETAILS OF FINANCIAL ASSETS AND LIABILITIES
This note gives an overview of measurement of financial assets and liabilities and the accounting treatment 
of these balance sheet items. The measurement method in the tables are defined as follows:
Level 1:	 Recorded fair value based on quoted. unadjusted prices in active markets for identical assets
                and liabilities
Level 2: 	 Recorded fair value based on valuation using observable market data. directly or indirectly. 
                as input
Level 3:	 Recorded fair value based on valuation without availability of any observable market data 
                as input
2022
(NOK million)
Note
Level
Fair value
Amortised 
cost
Total
Interest-
bearing
NON-CURRENT ASSETS
Share investments
3
6
6
Non-current financial receivables
85
85
85
Total
6
85
92
85
CURRENT ASSETS
Accounts receivable
3.5
6 312
6 312
Other current receivables
3.5
731
731
Current derivatives
4.1
1
 27 
 27 
Cash and cash equivalents
4.2
3 312
3 312
3 312
Total
 27 
10 356
10 383
3 312
Total financial assets
34
10 441
10 475
3 398
2021
(NOK million)
Note
Level
Fair value
Amortised 
cost
Total
Interest-
bearing
NON-CURRENT ASSETS
Share investments
3
9
9
Non-current financial receivables
67
67
67
Total
9
67
75
67
CURRENT ASSETS
Accounts receivable
3.5
5 118
5 118
Other current receivables
3.5
635
635
Current derivatives
4.1
1
 - 
 - 
Cash and cash equivalents
4.2
3 388
3 388
3 388
Total
 - 
9 141
9 141
3 388
Total financial assets
9
9 208
9 216
3 455
  Accounting policy
Fair value of financial instruments:
The fair value of financial instruments that are traded in active markets at each reporting date is determined 
by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price 
for short positions), without any deduction for transaction costs. For financial instruments not traded in 
an active market, the fair value is determined using appropriate valuation techniques. Such techniques 
may include using recent arm’s length market transactions, reference to the current fair value of another 
instrument that is substantially the same, a discounted cash flow analysis or other valuation models.
2022
(NOK million)
Note
Level
Fair value
Amortised 
cost
Total
Interest-
bearing
NON-CURRENT LIABILITIES
Non-current financial liabilities
4.1
2 292
2 292
2 292
Total
 - 
2 292
2 292
2 292
CURRENT LIABILITIES
Interest-bearing debt 
4.1
2 796
2 796
2 796
Trade and other payables
3 489
3 489
Current tax liabilities
5.1
397
397
Other liabilities 
3.6
2 383
2 383
Current derivatives
4.1
1
 - 
 - 
Total
-
9 065
9 065
2 796
Total financial liabilities
-
11 357
11 357
5 088
2021
(NOK million)
Note
Level
Fair value
Amortised 
cost
Total
Interest-
bearing
NON-CURRENT LIABILITIES
Non-current financial liabilities
4.1
2 995
2 995
2 995
Total
 - 
2 995
2 995
2 995
CURRENT LIABILITIES
Interest-bearing debt 
4.1
2 266
2 266
2 266
Trade and other payables
2 926
2 926
Current tax liabilities
5.1
227
227
Other liabilities 
3.6
1 966
1 966
Current derivatives
4.1
1
 14 
 14 
Total
14
7 384
7 398
2 266
Total financial liabilities
14
10 379
10 393
5 261
Jotun Group    Jotun Annual Report 2022    47
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FINANCIAL ASSETS:
The Group’s financial assets include cash and short-term deposits, trade and other receivables, loans and 
other receivables, quoted and unquoted financial instruments and derivative financial instruments.
Initial recognition and measurement
Financial assets are classified at initial recognition and subsequently measured at amortised cost or fair 
value through profit or loss, correspondingly. The classification of financial assets at initial recognition 
depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for 
managing them. Financial assets are initially measured at their fair value. However, trade receivables that do 
not contain a significant financing component or for which the Group has applied the practical expedient are 
measured at the transaction price determined under IFRS 15.
For a financial asset to be classified and measured at amortised cost, it needs to give rise to cash flows that 
are “Solely Payments of Principal and Interest” (SPPI) on the principal amount outstanding. This assessment 
is referred to as the SPPI test and is performed at an instrument level. 
The Group’s business model for managing financial assets refers to how it manages its financial assets in 
order to generate cash flows. The business model determines whether cash flows will result from collecting 
contractual cash flows, selling the financial assets, or both. 
Subsequent measurement 
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at amortised cost
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not 
quoted in an active market. After initial measurement, such financial assets are subsequently measured 
at amortised cost using the effective interest rate method (EIR), less impairment. Gains and losses are 
recognised in the income statement when the assets are derecognised, modified or impaired. 
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets 
designated upon initial recognition at fair value through profit or loss or financial assets mandatorily 
required to be measured at fair value. Financial assets are classified as held for trading if they are 
acquired for the purpose of selling or repurchasing in the near term. This category includes derivative 
financial instruments entered into by the Group that are not designated as hedging instruments in hedge 
relationships as defined by IFRS 9. Financial assets at fair value through profit and loss are carried in the 
statement of financial position at fair value with changes in fair value recognised in net financial items in the 
consolidated income statement.
Impairment of financial assets
Further disclosure relating to impairment of financial assets are also provided in Note 3.5.
The Group recognises an allowance for Expected Credit Losses (ECLs) for all debt instruments not held at fair 
value through profit or loss. ECLs are based on the difference between the contractual cash flows due 
in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an 
approximation of the original effective interest rate. 
For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group 
does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each 
reporting date. The carrying amount of the asset is reduced using an allowance account and the amount of 
the loss is recognised in the income statement. 
 
FINANCIAL LIABILITIES:
Initial recognition and measurement
Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or 
loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, 
as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and 
borrowings, carried at amortised cost. This includes directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial 
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are 
classified as held for trading if they are acquired for the purpose of selling in the near term. This category 
includes derivative financial instruments entered into by the Group that are not designated as hedging 
instruments in hedge relationships as defined by IFRS 9. 
Gains or losses on liabilities held for trading are recognised in the income statement.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised 
cost using the effective interest rate method (EIR). Gains and losses are recognised in the income statement 
when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is 
calculated by taking into account any discount or premium on acquisition and fees or costs that are an 
integral part of the EIR. The EIR amortisation is included in financial costs in the income statement.
48    Jotun Annual Report 2022    Jotun Group
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5.10 HYPERINFLATION ACCOUNTING
Türkiye is considered a hyperinflationary economy for accounting purposes effective for 2022. This is mainly 
based on the fact that the cumulative inflation over three years exceeds 100 per cent. Consequently, the 
Group has applied IAS 29 ”Financial Reporting in Hyperinflationary Economies” from 1 January 2022 and 
onwards. Comparative figures are not restated.
IAS 29 requires the financial reporting of Jotun to be restated to reflect the current purchasing power at 
the end of the reporting period. For the income statement, all items are restated for changes in the general 
price index from the date of the transaction to the reporting date of 31 December, except for items related to 
non-monetary assets such as depreciation and consumption of inventories. 
In the balance sheet, all non-monetary assets, such as property, plant and equipment and inventories, are 
restated to the current purchasing power as of 31 December using a general price index from the date 
when they were first recognised in the accounts. Monetary assets and liabilities are by their nature stated 
at their current purchasing power, and accordingly a gain/loss on the monetary net position from 1 January 
to 31 December is recognised as financial income or expense representing the gain/loss obtained from 
maintaining a monetary liability or asset position respectively during an inflationary period. 
Hyperinflation adjustments have negatively impacted profit for the year with NOK 188 million, while a 
positive effect of NOK 319 million has  been recognised in Other comprehensive income. 
The cash flow statement is prepared to reflect cash flows during the year measured at the current 
purchasing power at the end of the reporting period and as such does not reflecting actual cash flows 
during the year.
Türkiye’s official inflation (CPI) for 2022 was 64.3 per cent. 
Jotun Group    Jotun Annual Report 2022    49
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5.11 ALTERNATIVE PERFORMANCE MEASURES
The Group uses certain financial measures that are not defined in IFRS to describe the Group’s financial 
performance, financial position and cash flows. These financial measures may therefore be defined and 
calculated differently from similar measures in other companies, and thus not be comparable.
The performance measures set out below have been consistent over time and are some of the key indicators  
used in management reporting to monitor business performance.
The non-IFRS financial measures presented in the Annual Report are:
EBITDA: Profit before interest, income tax, depreciation and amortisation
EBITA: Profit before interest, income tax and amortisation
Furthermore, a breakdown of operating working capital, net working capital and invested capital is 
given in Note 3.1
Operating working capital
revenue %
=
Average operating working capital
x 100
Revenue from contracts with customers
Return on capital employed %
=
Operating profit + amortisation of intangible assets
x 100
Average capital employed
Operating margin %
=
Operating profit 
x 100
Operating revenue
Return on equity  %
=
Total comprehensive income for the year
x 100
Average equity
Capital employed
=
Net working capital + invested capital
50    Jotun Annual Report 2022    Jotun Group
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Jotun A/S
31 December 2022
Parent Company 
Financial 
Statements
Jotun A/S    Jotun Annual Report 2022    51
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INCOME STATEMENT
(NOK million)
Note
2022
2021
Operating revenue
2.1, 5.5
4 607
 4 208 
Cost of goods sold
2.1, 5.5
-2 119
-1 960
Payroll expenses 
2.2, 5.2
-1 116
-1 092
Other operating expenses
2.3, 5.4, 5.5
-887
-710
Depreciation, amortisation and impairment
3.1, 3.2, 5.4
-310
-303
Operating profit
175
143
Dividend from subsidiaries
1 378
812
Dividend from associates and joint ventures
546
654
Net financial items
4.3, 4.4, 5.4, 5.5
-10
-129
Profit before tax
2 090
1 480
Income tax expense
5.1
-388
-239
Profit for the year
1 702
1 241
STATEMENT OF COMPREHENSIVE INCOME
(NOK million)
Note
2022
2021
Profit for the year
1 702
1 241
Other comprehensive income to be reclassified to profit or loss in 
subsequent periods:
Actuarial gain/loss (-) on defined benefit pernsion plans (net of tax)
5.2
5
-10
Other comprehensive income for the year, net of tax
5
-10
Total comprehensive income for the year
1 707
1 231
STATEMENT OF FINANCIAL POSITION
(NOK million)
Note
31.12.2022
31.12.2021
ASSETS
Non-current assets 
Deferred tax assets
5.1
 136 
 144 
Other intangible assets 
3.1
 629 
 590 
Property, plant and equipment
3.2, 5.4
 2 156 
 2 263 
Investments in subsidiaries
5.6
 3 715 
 3 487 
Investments in associates and joint ventures
5.7
 318 
 318 
Share investments
5.8
 6 
 8 
Other non-current financial receivables
4.1, 4.4, 5.4, 5.5
 1 809 
 2 084 
Total non-current assets
 8 768 
 8 894 
Current assets 
Inventories 
3.3
 694 
 633 
Trade and other receivables 
3.4, 4.1, 5.5
 1 448 
 1 059 
Cash and cash equivalents 
4.1, 4.2
 1 272 
 1 400 
Total current assets
 3 413 
 3 093 
Total assets
 12 182 
 11 987 
EQUITY AND LIABILITIES
Equity 
Share capital
5.9
 103 
 103 
Other equity 
 7 620 
 6 683 
Total equity
 7 723 
 6 786 
Non-current liabilities 
Pension liabilities
5.2
 193 
 201 
Provisions
3.6, 3.7
 125 
 138 
Interest-bearing debt
4.1
 1 426 
 2 198 
Total non-current liabilities
 1 743 
 2 537 
Current liabilities 
Interest-bearing debt 
4.1
1 085
1 261
Trade payables
5.5
 511 
 519 
Tax payable
5.1
 188 
 68 
Other current liabilities 
3.5, 3.6, 5.5
 931 
 817 
Total current liabilities 
 2 716 
 2 665 
Total liabilities
 4 459 
 5 201 
Total equity and liabilities
 12 182 
 11 987 
52    Jotun Annual Report 2022    Jotun A/S
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STATEMENT OF CHANGES IN EQUITY
(NOK million)
Note
Share capital
Other equity
Total equity
Equity as of 1 January 2021
 103 
 6 050 
6 153
Dividends
5.9
-599
-599
Profit for the year
1 241
1 241
Other comprehensive income
5.2
-10
-10
Equity as of 31 December 2021
 103 
 6 683 
 6 786 
Dividends
5.9
-770
-770
Profit for the year
1 702
1 702
Other comprehensive income
5.2
5
5
Equity as of 31 December 2022
 103 
 7 620 
 7 723 
STATEMENT OF CASH FLOWS
(NOK million)
Note
2022
2021
Cash flow from operating activities 
Operating profit
175
143
Adjustments to reconcile profit before tax to net cash flows:
     Gain / loss on sale of fixed assets
3.2
-27
-41
     Depreciation, amortisation and impairment
3.1, 3.2
310
326
     Change in accruals, provisions and other
56
-52
Working capital adjustments:
     Change in trade and other receivables
-67
-16
     Change in trade payables
-8
70
     Change in inventories 
-60
-109
Cash generated from operating activities
380
320
Dividend from subsidiaries, associates and joint ventures
1 924
1 466
Interest received
4.3, 5.5
119
89
Interest paid
4.3
-73
-43
Other financial items
4.3
15
-19
Tax payments
5.1
-266
-199
Net cash flow from operating activities
2 099
1 615
Cash flow from investing activities
Proceeds from sale of property, plant and equipment
3.2
25
50
Purchase of property, plant and equipment
3.2
-132
-197
Purchase of intangible assets
3.1
-107
-98
Investments in subsidiaries, associates and joint ventures
5.6,5.7
63
-517
Net cash flow from investing activities
-151
-763
Cash flow from financing activities
Repayment (-) / proceeds in group account system (cash pool)
5.5
-422
-194
Cash payments for new lending
4.4, 5.5
-89
366
Repayment (-) / proceeds from borrowings
4.1
-776
-4
Payment of principal portion of lease liabilities 
5.4
-20
-17
Dividend paid
5.9
-770
-599
Net cash flow from financing activities
-2 076
-448
Net increase/(decrease) in cash and cash equivalents
-128
405
Cash and cash equivalents as of 1 January
4.2
1 400
995
Cash and cash equivalents as of 31 December
4.2
1 272
1 400
Jotun A/S    Jotun Annual Report 2022    53
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54    Jotun Annual Report 2022    Jotun A/S
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Notes for 
the Parent 
Company
01
Basis of Preparation 
1.1
Accounting policies
56
1.2
Estimates and judgements 
56
1.3
Events after the balance sheet date
56
02
Results for the Year
2.1
Operating revenue
56
2.2
Payroll expenses 
57
2.3
Other operating expenses
57
03
Invested Capital and Working Capital Items
3.1
Intangible assets 
57
3.2
Property, plant and equipment 
58
3.3
Inventories
58
3.4
Trade and other receivables
58
3.5
Other current liabilities
59
3.6
Provisions
59
3.7
Contingent liabilities
59
3.8
Contractual obligations and guarantees
59
05
Invested Capital and Working Capital Items
5.1
Taxation
61
5.2
Pensions and other long-term employee benefits
62
5.3
Remunerations
62
5.4
Leases
62
5.5
Related parties
64
5.6
Subsidiaries
65
5.7
Shares in joint ventures and associates
66
5.8
Share investments
67
5.9
Share capital and shareholder information
67
04
Capital Structure and Financial Items
4.1
Interest-bearing debt 
60
4.2
Cash and cash equivalents
60
4.3
Net financial items
60
4.4
Financial risk management
61
Jotun A/S    Jotun Annual Report 2022    55
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1.1 ACCOUNTING POLICIES
The financial statements for Jotun A/S have been prepared in accordance with simplified IFRS pursuant to 
section 3-9 of the Norwegian Accounting Act. This mainly implies that the financial statements are presented 
in accordance with IFRS, and the notes are presented in accordance with the requirements of the Norwegian 
Accounting Act. The accounting policies for the Group therefore also apply to Jotun A/S.
Line items in the notes named Jotun entities comprise subsidiaries, associates, and joint ventures.
Accounting policies estimates and judgements specific to Jotun A/S are incorporated into the individual 
notes.
For more information about accounting policies, see consolidated financial statement for the Group.
1.2 ESTIMATES AND JUDGEMENTS 
In preparing the company`s financial statements, Management makes various accounting estimates and 
assumptions that form the basis of the presentation, recognition, and measurement of the company`s assets 
and liabilities. See Note 1.3 to the consolidated statements.
1.3 EVENTS AFTER THE BALANCE SHEET DATE
No events have taken place after the balance sheet date that would have affected the financial statements, 
or any assessments carried out.
2.1 OPERATING REVENUE
(NOK million)
2022
2021
Revenue from contracts with customers 
1 715
1 801
Revenue from contracts with customers, Jotun entities
1 416
1 274
Total revenue from contracts with customers 
3 131
3 075
Other revenue
231
61
Other revenue, Jotun entities
1 244
1 072
Total operating revenue
4 607
4 208
Other revenue includes among others royalty income, misc. grants and refunds and profit from sale of fixed 
assets.
Revenue from contracts with customers by segments
(NOK million)
2022
2021
Decorative
2 695
2 681
Marine
307
279
Protective
98
79
Powder
32
36
Total revenue from contracts with customers 
3 131
3 075
Cost of Goods Sold
2 119
1 960
Gross Profit
1 013
1 115
Payment terms are based on agreements and local business practices and are in general in the range of 30 to 
60 days.
56    Jotun Annual Report 2022    Jotun A/S
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2.3 OTHER OPERATING EXPENSES 
(NOK million)
2022
2021
Manufacturing
102
99
Warehouse
31
28
Transportation
54
54
Sales and marketing
105
78
Technical service
15
19
Research and Development
381
309
General and administrative
172
102
Royalty
33
30
Other*
-6
-8
Total
887
710
* Other consists mainly of product liability claims and losses on accounts receivable.
2.2 PAYROLL EXPENSES 
 
Jotun A/S has a system of annual bonuses that applies to senior management and is limited to a maximum of 20 
per cent of annual basic salary. Further, all members of the management, including the President & CEO, are part 
of an annual profit-dependent bonus system limited upwards to 50 per cent of annual basic salary.
The company`s pension plans are primarily defined contribution plans. For further information, see Note 5.2.
For remuneration of President & CEO and Board of Directors, see note 5.3.
(NOK million)
2022
2021
Wages including bonuses
 906 
 867 
Social costs
 144 
 139 
Pension costs, ref. Note 5.2
 84 
 98 
Other personnel costs
-18
-12
Total 
1 116
1 092
Average full-time equivalents employees
 985 
975
3.1 INTANGIBLE ASSETS 
 
Intangible assets are non-physical assets that have either been capitalised through internal development of 
products (development cost), customisation of IT applications or separate acquisitions. See Note 3.2 to the 
consolidated financial statements for further information.
(NOK million)
Development cost 
IT Applications and 
other intangibles
Total
Cost
Balance as of 1 January 2021
445
475
920
Additions
37
61
98
Disposals
-
-107
-107
Reclassifications
-
-
-
Balance as of 31 December 2021
482
430
912
Additions
37
69
107
Disposals
-
-
-
Balance as of 31 December 2022
519
499
1 018
Amortisation and impairment
Balance as of 1 January 2021
-107
-251
-358
Amortisation
-20
-48
-68
Disposals
-
104
104
Balance as of 31 December 2021
-127
-195
-322
Amortisation
-20
-46
-67
Disposals
-
-
-
Balance as of 31 December 2022
-148
-241
-389
Net book value
Balance as of 31 December 2022
371
258
629
Balance as of 31 December 2021
355
235
590
Estimated useful life
8-10 years
3-10 years
Jotun A/S    Jotun Annual Report 2022    57
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3.2 PROPERTY, PLANT AND EQUIPMENT	  
 
Property, plant and equipment comprise various types of tangible fixed assets needed. A major part of the 
amount reclassified from Construction in progress in 2021 relates to the upgrade of the factory in Sandefjord, 
Norway (ReVamp) which was finalised and taken in use in January 2022. 
See Note 5.4 for Right-of-Use assets.
(NOK million)
Land Buildings
Electrical 
installa­
tions
Machinery, 
vehicles 
and equip­
ment
Construc­
tion in 
progress
Right-
of- Use 
assets
Total
Cost
Balance as of 1 January 2021
47
1 580
617
1 218
163
72
3 698
Additions
9
2
50
137
40
237
Disposals
-103
-2
-57
-
-
-162
Reclassifications
-
-
-
-
-
-
Balance as of 31 December 2021
47
1 487
617
1 212
300
112
3 774
Additions
46
34
60
-7
3
136
Disposals
-93
-1
-26
-
-
-121
Reclassifications
28
22
198
-248
-
-
Balance as of 31 December 2022
47
1 468
671
1 443
45
116
3 789
Depreciation and impairment
Balance as of 1 January 2021
-
-471
-114
-804
-
-27
-1 416
Depreciation
-49
-64
-94
-17
-224
Disposals
95
1
45
-
141
Impairment
-11
-
-
-
-12
Balance as of 31 December 2021
-
-437
-177
-854
-
-44
-1 511
Depreciation
-49
-62
-94
-18
-223
Disposals
93
1
26
0
121
Impairment
-
-
-21
0
-21
Balance as of 31 December 2022
-
-393
-237
-942
-
-62
-1 633
Net book value
Balance as of 31 December 2022
47
1 075
434
501
45
54
2 156
Balance as of 31 December 2021
47
1 050
440
358
300
69
2 263
Estimated useful life
Indefinite
25-33 
years
10-14 
years
3-10 
years
3.3 INVENTORIES
(NOK million)
31.12.2022
31.12.2021
Raw materials
287
265
Finished goods
422
382
Allowance for obsolete goods
-16
-14
Total
694
633
3.4 TRADE AND OTHER RECEIVABLES 
(NOK million)
31.12.2022
31.12.2021
Accounts receivable
94
69
Accounts receivable - Jotun entities
754
701
Total accounts receivable
848
770
Other receivables external
146
117
Other receivables - Jotun entities
454
173
Total
1 448
1 059
The change in allowance for bad debt is shown in the following table:
(NOK million)
31.12.2022
31.12.2021
Balance as of 1 January
40
45
Allowances for bad debt made during the period
29
21
Realised losses for the year
-3
-26
Balance as of 31 December
66
40
Ageing of accounts receivable as of 31 December was as follows:
(NOK million)
31.12.2022
31.12.2021
Not due
681
618
Less than 30 days
69
53
30-60 days
14
24
60-90 days
33
20
More than 90 days
117
93
Allowance for bad debt*
-66
-40
Total
848
770
* Allowances related to receivables from Jotun entities represent NOK 65 million (2021: NOK 39 million).
58    Jotun Annual Report 2022    Jotun A/S
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3.5 OTHER CURRENT LIABILITIES
(NOK million)
31.12.2022
31.12.2021
Public charges and holiday pay
177
174
Prepaid dividend from Jotun entities
445
357
Other liabilities to Jotun entities
 10 
7
Other accrued expenses
203
122
Total current provisions, ref. Note 3.6
97
157
Total
931
817
Prepaid dividends from associates or joint ventures are recognised as current liabilities until the final approval 
by the General Assembly in the following year. Other accrued expenses are related to commissions, bonuses to 
employees and other accrued expenses.
3.6 PROVISIONS
2022
(NOK million)
Claims
Environmental
Other
Total
Balance as of 1 January
203
70
22
295
Provisions arising during the year
4
35
-
39
Utilised
-33
-
-9
-42
Unused amounts reversed
-71
-
-
-71
Balance as of 31 December 
103
105
13
221
Current, ref. Note 3.5
93
-
3
97
Non-current
10
105
10
125
Total
103
105
13
221
2021
(NOK million)
Claims
Environmental
Other
Total
Balance as of 1 January
284
70
37
390
Provisions arising during the year
1
-
-
1
Utilised
-79
-
-11
-90
Unused amounts reversed
-3
-
-3
-6
Balance as of 31 December 
203
70
22
295
Current, ref. note 3.5
145
-
12
157
Non-current
58
70
10
138
Total
203
70
22
295
3.7 CONTINGENT LIABILITIES
Product liability claims and disputes 
Product liability claims consist of several separate and specific guarantee claims arising from products sold. 
Assumptions used to calculate provisions for claims are based on technical assessments of product failures 
and the expected repair cost for each specific case.
In accordance with Jotun policies, claims should in principle be covered by customer-owner company. When 
a claim is caused by product or specification failure, costs will be reimbursed by Jotun A/S based on the 
prevailing royalty and CCA agreements.
Environmental matters 
Jotun A/S is through its operation exposed to environmental and pollution risk. Production facilities and 
product warehouse sites have been inspected regarding environmental conditions in the soil. For sites 
where clean-up costs are probable and reliable estimates of the costs have been made, provisions are 
recorded accordingly. Due to uncertainties inherent in the estimation process, it is possible that such 
estimates could be revised in the near term. In addition, further expenditures may arise as the full scope 
of conditions at some sites has yet to be determined. The related amount of potential, future costs is not 
determinable due to the unknown timing and extent of corrective actions which may be required. Jotun’s 
activities are carried out in accordance with local laws and regulations, and the Group’s HSE requirements. 
Changes in laws and regulations may require Jotun A/S to make investments and incur costs to meet future 
compliance requirements.
3.8 CONTRACTUAL OBLIGATIONS AND GUARANTEES
Purchase obligations	
Jotun A/S has no significant contractual committed capital expenditures (CAPEX) at year end. For purchase 
of raw materials there are no actual commitments for the company. In general, these contracts can be 
terminated without significant penalties. 
Other obligations	
Jotun A/S has guarantees mainly covering tax withholding and other guarantees for subsidiaries. These 
amounted to approximately NOK 1 212 million in 2022 (2021: NOK 403 million).
Jotun A/S    Jotun Annual Report 2022    59
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4.1 INTEREST-BEARING DEBT 
The table below gives an overview of total net interest-bearing debt. Further information is given in Note 4.1 to 
the consolidated financial statements.
	
(NOK million)
31.12.2022
31.12.2021
Non-current interest-bearing debt
Bond 2018-24 (NIBOR + 0.9 %)
NOK
650
650
Bond 2019-23 (NIBOR + 0,9 %)
NOK
-
600
Bond 2021-26 (NIBOR + 0,7 %)
NOK
300
300
Bond 2021-28 (NIBOR + 0,9 %)
NOK
350
350
Bank debt NIB 2013-24 (US LIBOR + 1.2 %), unsecured
USD
91
245
Total excl. lease liability
1 391
2 145
Lease liability
36
53
Total
1 426
2 198
Current interest-bearing debt
Bond 2018-22 (NIBOR + 0.7 %)
NOK
-
640
Bond 2019-23 (NIBOR + 0.93 %)
NOK
600
-
Bank debt NIB 2013-24 (US LIBOR + 1.2 %), unsecured
USD
181
163
Other current interest-bearing debt (cash pool)
286
442
Total excl. lease liability
1 067
1 245
Lease liability
19
16
Total
1 085
1 261
Total interest-bearing debt excl. lease liability
2 458
3 390
Total lease liability
54
70
Total interest-bearing debt
2 512
3 459
Non-current interest-bearing receivables
1 809
2 084
Current interest-bearing receivables
440
148
Cash and cash equivalents 
1 272
1 400
Total interest-bearing receivables
3 521
3 633
Net interest-bearing receivables/debt (-)
1 009
174
4.2 CASH AND CASH EQUIVALENTS 
(NOK million)
31.12.2022
31.12.2021
Cash deposits
 651 
372
Short-term investments
 621 
1 028
Total
1 272
1 400
As of 31 December 2022 Jotun, A/S had NOK 2 515 million (2021: 2 000 million) of undrawn credit facilities 
available.
4.3 NET FINANCIAL ITEMS 
Financial income
(NOK million)
2022
2021
Interest income
17
10
Interest income on loans to Jotun entities
102
79
Net foreign exchange gain
31
-
Other financial income
57
9
Total
207
99
Financial costs
(NOK million)
2022
2021
Interest costs
-73
-43
Net foreign exchange loss
-
-19
Impairment of shares in subsidiaries, see Note 5.6
-133
-157
Other financial costs
-10
-9
Total
-216
-228
Net financial items
-10
-129
In July 2022, Jotun A/S sold its wholly-owned Russian subsidiary Jotun Paints LLC. A gain of NOK 39 million was 
recognised and reported as Other financial income.
Exchange gains and losses related to forwards and options have affected the net financial items with the follow­
ing amounts:
(NOK million)
2022
2021
Unrealised gain / loss (-)
41
-49
Realised gain / loss (-)
-188
-27
60    Jotun Annual Report 2022    Jotun A/S
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4.4 FINANCIAL RISK MANAGEMENT
The company’s financial risks and the management of these are in all material aspects identical to the disclo­
sures made in Note 4.4 to the consolidated financial statements, unless otherwise stated below.
To reduce currency risk in cash flows, Jotun A/S uses currency options and forward contracts to ensure predict­
ability in cash flows up to 16 months ahead. As of 31 December 2022, Jotun A/S has hedged 50 per cent of its 
next cash flow over the next 12 months.
The currency exposures related to external loans in foreign currency given to Jotun entities are disclosed in the 
table below.
(NOK million)
31.12.2022
31.12.2021
Local currency
Currency amount
NOK
Currency amount
NOK
MYR
174
387
174
368
USD
36
357
46
409
QAR
80
214
80
194
GBP
18
213
18
215
EUR
15
154
25
247
PHP
841
148
841
145
IDR
210 636
133
210 636
130
SGD
17
124
22
144
CZK
78
34
78
31
RUB
580
68
Other
53
83
Total 
1 816
2 035
5.1 TAXATION
Income tax reported in the income statement
(NOK million)
2022
2021
Current income tax charge:
Tax payable
 381
 248
Deferred tax:
Relating to original and reversal of temporary differences
 7 
-9
Income tax expense reported in the income statement
388
239
Reconciliation of Norwegian nominal statutory tax rate to effective tax rate
In the following table reported income tax is reconciled with the calculated tax expense based on the Norwegian 
tax rate of 22 per cent. The main components are specified below.
(NOK million)
2022
2021
Profit before tax as reported in the income statement
2 090
1 480
Income taxes at statutory tax rate
22 %
460
22 %
326
Exempted tax on dividends
-14 %
-303
-18 %
-260
Tax on dividends and surplus in controlled foreign companies (CFC)
2 %
49
5 %
75
Non-deductible expenses and non-taxable income*
1 %
13
2 %
26
Correction previous year and change in temporary differences
5 %
110
0 %
2
Taxation outside Norway less deductible in Norwegian Tax
3 %
59
5 %
70
Total income tax expense
388
239
Effective tax rate
19 %
16 %
* Non-deductible expenses are primarily related to write-down of shares. See Note 5.6 for further information.
Specification total tax payable
(NOK million)
2022
2021
Tax payable for the year
 381 
248
Net foreign tax paid
-46
-84
Norwegian tax settlement for previous years
-
-8
Withholding taxes receivable
-94
-66
CFC tax receivable (NOKUS)
-49
-18
SkatteFUNN (R&D tax incentive scheme) receivable
-5
-5
Total tax payable in Norway and abroad
188
68
Tax payable in Norway
160
42
Specification of deferred tax
(NOK million)
2022
2021
Non-current assets
-144
-106
Current assets
-56
-50
Liabilities
-421
-500
Net temporary differences 
-620
-656
Tax rate
22 %
22 %
Deferred tax asset recognised in the statement of financial position
136
144
Information about estimate and judgment, see Note 5.1 to the consolidated financial statements.
Jotun A/S    Jotun Annual Report 2022    61
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5.2 PENSIONS AND OTHER LONG-TERM EMPLOYEE BENEFITS
Jotun A/S has both defined contribution and defined benefit pension plans. The majority of the company’s 
pension plans are defined contribution plans, whereby the company’s obligation is limited to annual 
contributions to the employees’ pension plans. Costs related to the defined benefit plans account for less than 
five per cent of total pension costs in 2022.
Summary of pension costs
(NOK million)
2022
2021
Pension costs defined contribution plans and other severance schemes
81
94
Pension costs defined benefit plans
3
3
Total pension costs recognised in the income statement, ref. Note 2.2
84
98
Actuarial gain / loss (-) recognised in other comprehensive income (net of tax)
5
-10
	
The defined benefit schemes were replaced by defined contribution plans in 2004. Net pension obligations as of 
31 December 2022 are primarily related to previous early retirement schemes for Jotun A/S’s senior executives.
Other severance schemes are obligations related to operating pension schemes for employees with an annual 
basic salary and pension base exceeding 12 times the basic amount (G).
Actuarial assumptions
2022
2021
Discount rate in %
 2.7 
1.1
Expected return in %
 2.7 
2.9
Wage adjustment in %
 4.5 
2.5-3.5
Inflation / increase in social security basic amount (G) in %
 3.5 
2.3-2.5
Pension adjustment in %
 1.6-3.75 
1.2-2.0
Schemes with net pension obligations
Net pension obligations
(NOK million)
2022
2021
Balance as of 1 January
-98
-85
Recognised in the Income Statement
-3
-3
Other movements
-
-10
Net pension obligation defined benefit plans
-95
-98
Other severance schemes
-97
-104
Balance as of 31 December 
-193
-201
5.3 REMUNERATIONS
Remuneration of the President & CEO
(NOK thousand)
Ordinary salary
Bonus
Benefits in kind
Pension cost
Total
President & CEO
 7 389 
 2 928 
 327 
 130 
 10 774 
The President & CEO is part of a pension scheme that includes a mutual opportunity to discontinue employment 
in whole or in part up to five years earlier than a stipulated retirement age of 67 years.
Jotun A/S has no obligation to give the President & CEO or the Chairman of the Board special remuneration 
upon discontinuance or change of employment or office. Should the President & CEO’s employment discontinue, 
his contract has a clause stipulating that a one-year “competition quarantine” may be imposed with compensa­
tion. The President & CEO has a notice period of six months.
Jotun A/S has not given any loans or guarantees to the President & CEO, the Chairman of the Board, or to any 
shareholders or members of Jotun A/S Management, the Board of Directors, or Corporate Assembly.
Remuneration of the Board of Directors and Corporate Assembly
(NOK thousand)
31.12.2022
31.12.2021
Board of Directors
2 760
2 730
Corporate Assembly
183
180
Total
2 943
2 910
Shares controlled by members of the Board of Directors and Jotun A/S Management are specified in Note 5.8 in 
the consolidated financial statement.
External auditor remuneration
(NOK thousand)
31.12.2022
31.12.2021
Statutory audit
3 816
3 036
Other attestation services
44
25
Tax services
431
550
Other services
194
23
Total
4 485
3 634
62    Jotun Annual Report 2022    Jotun A/S
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5.4 LEASES
Right-of-Use assets
(NOK million)
Land
Buildings
Machinery, vehicles 
and equipment
Total
Cost
Balance as of 1 January 2021
 21 
 9 
 42 
72
Additions
 6 
 13 
 21 
40
Balance as of 31 December 2021
 27 
 22 
 63 
112
Additions
-21 
 5 
 20 
3
Balance as of 31 December 2022
 6 
 27 
 83 
116
Depreciation and impairment
Balance as of 1 January 2021
-4 
-3 
-20 
-27
Depreciation
-2 
-2 
-12 
-17
Balance as of 31 December 2021
-6 
-6 
-32 
-44
Depreciation
-0 
-5 
-13 
-18
Balance as of 31 December 2022
-6 
-11 
-45 
-62
Net book value
Balance as of 31 December 2022
 0 
 16 
 38 
 54 
Balance as of 31 December 2021
 21 
 16 
 31 
 69 
Lease liability as of 31 December
(NOK million)
31.12.2022
31.12.2021
Non-current
36
 53 
Current
19
 16 
Total
54
 70 
Lease liability is classified as interest-bearing debt, see Note 4.1.
Undiscounted lease liabilities and maturity of cash outflows:
(NOK million)
31.12.2022
31.12.2021
Less than 1 year
20
 18 
1-2 years
17
 16 
2-3 years
12
 13 
3-4 years
5
 9 
4-5 years
2
 6 
More than 5 years
1
 14 
Total undiscounted lease liabilities
57
 76 
Amounts recognised in the consolidated income statement: 	
(NOK million)
2022
2021
Leases
Depreciation of Right-of-Use assets
18
 17 
Interest expense
1
 2 
Other lease expenses recognised in the income statement:
Expenses relating to short-term leases
3
3
Expenses relating to lease of low value assets
1
1
Expenses related to variable payments
14
15
Total
37
 37 
The total cash outflow related to lease of RoU asset was NOK 20 million (2021: 19 million).
The portfolio of short-term leases does not vary significantly from year to year.
Jotun A/S    Jotun Annual Report 2022    63
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5.5 RELATED PARTIES
Two parties are deemed to be related if one party can influence the decisions of the other. During 2022, goods 
and services were purchased and sold to various related parties in which Jotun A/S holds a 100 per cent or 
less equity interest. Investments in subsidiaries are presented in Note 5.6, investments in associates and joint 
ventures are presented in Note 5.7 and shareholder and dividend information are presented in Note 5.8 to the 
consolidated financial statements.
The transactions between related parties are sales and purchases of finished goods, raw materials and technical 
services. Jotun A/S also has considerable royalty income from Jotun entities. Joint expenses are distributed in 
accordance with agreed cost contribution arrangements. Internal trading within the Group is carried out in 
accordance with arm’s length principles.
Purchases of services from the Group companies are mainly related to global and regional functions included 
in the cost contribution arrangement. In addition, Jotun A/S purchases research and development services from 
Jotun entities. Parts of the research and development costs are capitalised, see Note 3.1.
The amounts of these transactions are shown in the table below.
2022
(NOK million)
Sales of 
goods to
Purchases 
of goods 
from
Other 
revenue 
from
Cost 
contribu­
tion income
Purchases 
of services 
from
Interests 
on loans to
Group companies
1 205
362
857
639
460
101
Joint ventures and associates
211
71
387
188
281
0
Total
1 416
433
1 244
828
741
102
2021
(NOK million)
Sales of 
goods to
Purchases 
of goods 
from
Other 
revenue 
from
Cost 
contribution 
income
Purchases 
of services 
from
Interests 
on loans 
to
Group companies
1 166
323
790
572
384
79
Joint ventures and associates
108
82
282
161
224
1
Total
1 274
405
1 072
733
609
79
Intercompany balances are disclosed in the table below.
 Subsidiaries
Associates / Joint ventures
(NOK million)
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Non-current assets
Other non-current receivables
1 786
2 063
2
1
Total non-current assets
1 786
2 063
2
1
Current assets
Trade receivables
610
589
144
106
Other current receivables
454
173
-
-
Total current assets
1 064
762
144
106
Total assets
2 850
2 825
145
107
Current liabilities
Trade creditors
119
116
23
26
Other short term liabilities
361
498
379
308
Total liabilities
480
613
402
333
64    Jotun Annual Report 2022    Jotun A/S
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5.6 SHARES IN SUBSIDIARIES
SHARES HELD DIRECTLY BY THE PARENT COMPANY	
Company
City
Country
Book value 
(NOK million)
Ownership %
Jotun Algerie S.A.R.L
Algiers
Algerie
11
70.00 
Technover P SPA
Algiers
Algerie
38
75.00 
Jotun Australia Pty. Ltd.
Melbourne
Australia
42
100.00 
Jotun Bangladesh Ltd
Dhaka
Bangladesh
78
99.99 
Jotun Brasil Importacao, Exportacao E Ind De Tintas Ltda.
Rio De Janeiro
Brazil
248
100.00 
Jotun (Cambodia) LTD
Phnom Penh
Cambodia
1
100.00 
Jotun Paints (HK) Ltd.
Hong Kong
China
85
100.00 
Jotun Cyprus Ltd.
Limassol
Cyprus
8
100.00 
Jotun Danmark A/S
Kolding
Denmark
3
100.00 
El-Mohandes Jotun S.A.E.
Cairo
Egypt
143
70.00 
Jotun Powder Coatings LLL
Cairo
Egypt
0
10.00 
Jotun Ethiopia
Adama
Ethiopia
109
100.00 
Jotun France S.A.
Paris
France
2
100.00 
Jotun (Deutschland) Gmbh
Hamburg
Germany
12
83.33 
Jotun Hellas Ltd.
Glyfada
Greece
3
97.40 
Jotun Insurance Cell
St. Peterport
Guernsey
8
100.00 
Jotun India Private Ltd.
Mumbai
India
488
96.42 
P.T. Jotun Indonesia
Jakarta
Indonesia
88
56.63 
Jotun (Ireland) Ltd.
Cork
Ireland
0
100.00 
Jotun Italia S.R.L.
Trieste
Italy
93
100.00 
Jotun Kazakhstan LLP.
Almaty
Kazakhstan
1
100.00 
Jotun Kenya Limited
Nairobi
Kenya
10
95.00 
Jotun Libya J.S.Co.
Tripoli
Libya
6
80.00 
Jotun Paints (Malaysia) Sdn. Bhd.
Kuala Lumpur
Malaysia
204
100.00 
Jotun (Malaysia) Sdn.Bhd.
Kuala Lumpur
Malaysia
106
100.00 
Jotun Mexico, S.A. de C.V.
Veracruz
Mexico
22
99.54 
Jotun Maroc Sarld D Associe Unique
Casablanca
Morocco
21
100.00 
Jotun Myanmar Services Company Limited
Yangon
Myanmar
0
99.99 
Jotun Myanmar Company Limited
Yangon
Myanmar
0
99.99 
Jotun B.V.
Spijkenisse
Netherlands
49
100.00 
Scanox AS
Drammen 
Norway
80
100.00 
Jotun Powder Coatings AS
Sandefjord
Norway
109
100.00 
Jotun Paints Co. L.L.C.
Muscat
Oman
45
62.00 
Jotun Pakistan Private Limited
Lahore
Pakistan
0
100.00 
Jotun Powder Coatings Pakistan (Private) Ltd
Lahore
Pakistan
14
43.94 
Jotun (Philippines) Inc
Manila
Philippines
53
100.00 
Jotun Polska Sp.zo.o.
Gdansk
Poland
18
100.00 
Jotun Paints Qatar W.L.L.
Doha
Qatar
1
80.00 
Jotun Paints Factory Doha W.L.L.
Doha
Qatar
140
80.00 
Jotun Romania SRL
Voluntari City
Romania
1
100.00 
Jotun (Singapore) Pte. Ltd.
Singapore
Singapore
28
100.00 
Jotun Paints South Africa (Pty) Ltd.
Cape Town
South Africa
20
100.00 
Jotun Iberica S.A.
Barcelona
Spain
155
100.00 
Jotun Sverige AB
Gothenburg
Sweden
5
100.00 
Jotun Thailand Ltd.
Bangkok
Thailand
133
100.00 
Jotun Boya Sanayi ve Ticaret A.S.
Istanbul
Türkiye
108
100.00 
Jotun MEIA FZ-LLC
Dubai
UAE
542
100.00 
Jotun MENA LLC,
Dubai
UAE
50
100.00 
Jotun Paints (Europe) Ltd
Flixborough
UK
86
100.00 
Jotun Paints Inc.
New Orleans
US
185
100.00 
Jotun Paints Vietnam Co. Ltd.
Ho Chi Minh City Vietnam
60
100.00 
Total
3 715
Below follows the specification of companies subject to write downs in 2022.	
	
	
Company (NOK million)
Country
Write down
Jotun Myanmar Company Limited
Myanmar
33
Jotun (Philippines) Inc
Philippines
25
Jotun Brasil Importacao, Exportacao E Ind De Tintas Ltda.
Brazil
18
Jotun Bangladesh Ltd
Bangladesh
17
Jotun Maroc SARL D Associe Unique
Morocco
10
Total
103
  Estimate and judgement
Jotun A/S assess the carrying value of investments in shares whenever events or changes in circumstances 
indicate that the carrying value of an investment may not be recoverable.
If the carrying value of an investment exceeds its estimated recoverable amount, an impairment loss is 
recognised in the income statement.
Jotun A/S reverse impairment losses in the income statement if and to the extent Jotun A/S has identified a 
change in estimates used to determine the recoverable amount.
Jotun A/S has sold its shares in Jotun Paints LLC, Russia. The profit is recognised in the income statement for 
2022.
Jotun A/S    Jotun Annual Report 2022    65
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SHARES HELD BY SUBSIDIARIES AND ASSOCIATES	
	
	
	
Company
City
Country
Ownership %
Jotun Powder Coatings AS
Jotun Bulgaria EOOD
Sofia
Bulgaria
100.00
Jotun Czech a.s.
Usti nad Labem
Czech Republic
100.00
Jotun Powder Coatings LLL
Cairo
Egypt
90.00
Jotun India Private Ltd.
Mumbai
India
3.58
P.T. Jotun Indonesia
Jakarta
Indonesia
43.04
Jotun Kenya Limited
Nairobi
Kenya
5.00
Jotun Mexico, S.A. de C.V.
Veracruz
Mexico
0.40
Jotun Powder Coatings Pakistan (Privat) Ltd
Lahore
Pakistan
55.42
Jotun Paints (HK) Ltd
Jotun Coatings (Zhangjiagang) Co. Ltd.
Zhangjiagang
China
100.00
Jotun (Shanghai) Manangement Co. Ltd.
Shanghai
China
100.00
Jotun Coatings (Taiwan) Ltd company
Taipei
China
100.00
Jotun B.V.
Jotun (Deutschland) Gmbh
Hamburg
Germany
16.67
Jotun Hellas Ltd.
Glyfada
Greece
2.60
Jotun (Malaysia) Sdn.Bhd
Jotun Bangladesh Ltd
Dhaka
Bangladesh
0.01
Jotun Myanmar Services Company Limited
Yangon
Myanmar
0.01
Jotun Myanmar Company Limited
Yangon
Myanmar
0.01
Jotun MEIA FZ-LLC
El-Mohandes Jotun S.A.E.
Cairo
Egypt
0.05 
5.7 SHARES IN JOINT VENTURES AND ASSOCIATES	
	
SHARES HELD DIRECTLY BY THE PARENT COMPANY	
Company
City
Country
Book value
(NOK million)
Ownership 
%
Jotun COSCO Marine Coatings (HK) Ltd.
Hong Kong China
34
50
Jotun Saudia Co. Ltd.
Dammam
Saudi Arabia
39
40
Jotun Powder Coat. Saudi Arabia Co. Ltd.
Dammam
Saudi Arabia
26
30
Chokwang Jotun Ltd.
Busan
South Korea
82
50
Jotun U.A.E. Ltd. (LLC)
Dubai
UAE
109
41.5
Jotun Abu Dhabi Ltd.
Abu Dhabi
UAE
28
35
Jotun Yemen Paints Ltd.
Aden
Yemen
0
14
Shares held by Jotun A/S for third parties
0
Total
318
SHARES HELD BY SUBSIDIARIES AND ASSOCIATES	
	
Company
City
Country
Ownership 
%
Jotun Paints Co. L.L.C.
Jotun Yemen Paints Ltd.
Aden
Yemen
22.00
Jotun Saudia Co. Ltd.
Jotun Yemen Paints Ltd.
Aden
Yemen
17.00
Jotun U.A.E. Ltd. (LLC)
Jotun Abu Dhabi Ltd.
Abu Dhabi
U.A.E.
40.00
Jotun COSCO Marine Coatings (HK) Ltd.
Jotun COSCO Marine Coatings (Qingdao) Co
Qingdao
China
100.00
Jotun Powder Coatings U.A.E. Ltd.
Jotun Powder Coat. Saudi Arabia Co. Ltd.
Dammam
Saudi Arabia
40.00
Jotun Powder Coatings AS
Jotun Powder Coatings U.A.E. Ltd.
Dubai
U.A.E.
47.00
For further information regarding investments in associates and joint ventures, see Note 5.5 to the consolidated 
financial statements.
66    Jotun Annual Report 2022    Jotun A/S
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5.8 SHARE INVESTMENTS	
	
Company
City
Country
Book value
(NOK million) Ownership %
Nor-Maali OY
Lahti
Finland
6
33.44
Total
6
5.9 SHARE CAPITAL AND SHAREHOLDER INFORMATION	 	
	
See Note 5.8 to the consolidated financial statements.
Jotun A/S    Jotun Annual Report 2022    67
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Statsautoriserte revisorer 
Ernst & Young AS 
Dronning Eufemias gate 6a, 0191 Oslo 
Postboks 1156 Sentrum, 0107 Oslo 
Foretaksregisteret: NO 976 389 387 MVA 
Tlf: +47 24 00 24 00 
www.ey.no 
Medlemmer av Den norske Revisorforening 
A member firm of Ernst & Young Global Limited 
INDEPENDENT AUDITOR'S REPORT 
To the Annual Shareholders' Meeting of Jotun A/S 
Opinion 
We have audited the financial statements of Jotun A/S (the Company) which comprise the financial 
statements of the Company and the consolidated financial statements of the Company and its 
subsidiaries (the Group). The financial statements of the Company comprise the statement of financial 
position as at 31 December 2022 and the income statement, statement of comprehensive income, 
statement of cash flows and statement of changes in equity for the year then ended and notes to the 
financial statements, including a summary of significant accounting policies. The consolidated financial 
statements of the Group comprise the statement of financial position as at 31 December 2022, the 
income statement, statement of comprehensive income, statement of cash flows and statement of 
changes in equity for the year then ended and notes to the financial statements, including a summary of 
significant accounting policies. 
In our opinion 
•
the financial statements comply with applicable legal requirements,
•
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2022 and its financial performance and cash flows for the year then ended in
accordance with simplified application of international accounting standards according to section
3-9 of the Norwegian Accounting Act,
•
the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2022 and its financial performance and cash flows for the year then
ended in accordance with International Financial Reporting Standards as adopted by the EU.
Basis for opinion 
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our 
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of 
the financial statements section of our report. We are independent of the Company and the Group in 
accordance with the requirements of the relevant laws and regulations in Norway and the International 
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants 
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical 
responsibilities in accordance with these requirements. We believe that the audit evidence we have 
obtained is sufficient and appropriate to provide a basis for our opinion. 
Other information 
Other information consists of the information included in the annual report other than the financial 
statements and our auditor’s report thereon. Management (the board of directors and the CEO) is 
responsible for the other information. Our opinion on the financial statements does not cover the other 
information, and we do not express any form of assurance conclusion thereon. 
In connection with our audit of the financial statements, our responsibility is to read the other information, 
and, in doing so, consider whether the board of directors’ report contains the information required by 
applicable legal requirements and whether the other information is materially inconsistent with the 
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially 
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of 
this other information or that the information required by applicable legal requirements is not included, we 
are required to report that fact. 
2 
Independent auditor's report - Jotun A/S 2022 
A member firm of Ernst & Young Global Limited 
We have nothing to report in this regard, and in our opinion, the board of directors’ report is consistent 
with the financial statements and contains the information required by applicable legal requirements. 
Responsibilities of management for the financial statements 
Management is responsible for the preparation and fair presentation of the financial statements of the 
Company in accordance with simplified application of international accounting standards according to 
section 3-9 of the Norwegian Accounting Act and of the consolidated financial statements of the Group in 
accordance with International Financial Reporting Standards as adopted by the EU, and for such internal 
control as management determines is necessary to enable the preparation of financial statements that 
are free from material misstatement, whether due to fraud or error. 
In preparing the financial statements, management is responsible for assessing the Company’s and the 
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern 
and using the going concern basis of accounting unless management either intends to liquidate the 
Company or the Group, or to cease operations, or has no realistic alternative but to do so. 
Auditor’s responsibilities for the audit of the financial statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an 
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.  
Misstatements can arise from fraud or error and are considered material if, individually or in the 
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the 
basis of these financial statements. 
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional 
skepticism throughout the audit. We also:  
•
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s and the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
•
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s and the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company and the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
68    Jotun Annual Report 2022    Auditor’s report
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3 
Independent auditor's report - Jotun A/S 2022 
A member firm of Ernst & Young Global Limited 
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and 
timing of the audit and significant audit findings, including any significant deficiencies in internal control 
that we identify during our audit. 
Oslo, 14 February 2023 
ERNST & YOUNG AS 
Finn Ole Edstrøm 
State Authorised Public Accountant (Norway) 
Auditor’s report    Jotun Annual Report 2022    69
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8
12
The Board of Directors visited El-Mohandes Jotun 
Egypt and the new production facility.
From left: Jannicke Nilsson, Nicolai A. Eger, 
Per Kristian Aagaard, Bjørg Engevik Nilsen, 
Odd Gleditsch d.y. (Chairman), Einar Abrahamsen, 
Camilla Hagen Sørli and Terje Andersen.
Board of Directors 
Odd Gleditsch d.y., Chairman
Einar Abrahamsen​
Terje Andersen​
Nicolai A. Eger​
Bjørg Engevik Nilsen 
Jannicke Nilsson
Camilla Hagen Sørli​
Per Kristian Aagaard
Corporate Assembly 
Bjørn Ekdahl, Chairman 
Nils Andreas Arnesen
Terje V. Arnesen
Kornelia Eger Foyn-Bruun
Anne Cecilie Gleditsch
Bjørn Ole Gleditsch
Carl Erik Hagen
Knut Are Lohne
Thomas Ljungqvist
Siri Gilde Flenstad
Kari Lindtvedt
Jens-Erlend Thrana
70    Jotun Annual Report 2022    BoD and Corporate Assembly
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BoD and Corporate Assembly    Jotun Annual Report 2022    71
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72    Jotun Annual Report 2022    BoD and Corporate Assembly
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Read more 
about Sustainability 
in the Jotun Group 
Report 2022.
The paper used to print this report
has the Nordic Eco-labeling - the Swan -
and is also approved by the PEFC
Council (Programme for the Endorsement
of Forest Certifications schemes).
Credits
Copywriting: Alexander Wardwell / Blue-C AS
Design: bk.no Print: bk.no
Photo: Adobe Stock (cover, inside cover). Jotun (5, 6, 7, 8, 71), 
Morten Rakke (3, 5, 7, 8, 21, 24, 25, 51, 54), Line Klein, (5, 37), Ibrahim Malla /IFRC (6), 
Red Cross (6), Svein Brimi (7), Cemal Emden (33), Fogra/Jon Erik Andersen (72)
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Jotun A/S
P.O. Box 2021
3202 Sandefjord
jotun.com