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) 2020 2019
Revenue from contracts with customers 19 735 18 251
Revenue from contracts with customers - associates and joint ventures 891 971
Total revenue from contracts with customers 20 626 19 222
Other revenue 123 135
Other revenue from associates and joint ventures 321 295
Total operating revenue 21 070 19 652
(NOK million) 2020 2019
South East Asia and Pacific 5 060 5 152
North East Asia 3 725 3 267
Scandinavia 3 449 2 903
Middle East, India and Africa 3 346 3 182
West Europe 2 506 2 328
East Europe and Central Asia 2 043 1 829
Americas 497 562
Total revenue from contracts with customers 20 626 19 222
(NOK million) 2020 2019
Decorative Paints 8 005 7 201
Protective Coatings 6 354 5 958
Marine Coatings 4 534 4 350
Powder Coatings 1 733 1 714
Total revenue from contracts with customers 20 626 19 222
Cost of goods sold 10 643 10 441
Gross profit 9 983 8 781
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, solvents and metals. Cost of conversion is reported as part of manufacturing costs as described in
Note 2.4.
Payment terms are based on agreements and local business practices and are in general in the range of 30 to
90 days.
31 %
PROTECTIVE COATINGS
2019: 31 %
22 %
MARINE COATINGS
2019: 23 %
39 %
DECORATIVE PAINTS
2019: 37 % Group sales
8 %
POWDER COATINGS
2019: 9 %
per segment
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.
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Jotun Group
22 I Jotun Annual Report 2020