2.2 SHARE OF PROFITS FROM ASSOCIATES AND JOINT VENTURES
The table below shows share of profit after tax from associates and joint ventures. Share of equity in these
companies are recognised as non-current assets specified in Note 3.4.
(NOK million) Country Ownership 2020 2019
Associates
Jotun Saudia Co. Ltd. Saudia Arabia 40.0 % 230 169
Jotun Yemen Paints Ltd. Yemen 34.4 % -1 0
Jotun U.A.E Ltd. (LLC) U.A.E. 41.5 % 174 163
Jotun Abu Dhabi Ltd. (LLC) U.A.E. 51.6 % 67 58
Jotun Powder Coatings Saudia Arabia Co. Ltd. Saudia Arabia 46.6 % 18 5
Jotun Powder Coatings U.A.E. Ltd (LLC) U.A.E. 47.0 % 36 36
Total associates 525 431
Joint ventures
Chokwang Jotun Ltd. South Korea 50.0 % 103 23
Jotun COSCO Marine Coatings (Qingdao) Co. Ltd. China 50.0 % 56 -1
Jotun COSCO Marine Coatings (H.K.) Ltd. China 50.0 % 62 44
Total joint ventures 221 66
Total associates and joint ventures 746 497
Further financial details for the Group’s share of profit in associates and joint ventures are set out in Note 5.5.
2.3 PAYROLL EXPENSES
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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) 2020 2019
Wages including bonuses 2 669 2 501
Social costs 317 345
Pension costs, ref. Note 5.2 177 170
Other personnel costs 115 112
Total 3 277 3 128
Average full-time equivalents employees 7 307 7 200
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.
Payroll expenses
In % of revenue from contracts with customers
Share of profits from associates and joint ventures (NOK million)
In % of operating profit
39 % 40 %
28 %
21 % 21 %
17 % 17 % 16 % 16 % 16 %
Jotun Group
Jotun Annual Report 2020 I 23