5.5 RELATED PARTIES
Two parties are deemed to be related if one party can influence the decisions of the other. During 2020, 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.
2020
(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 1 089 233 750 563 375 121
Associates and joint ventures 112 30 277 175 258 -
Total 1 201 264 1 027 738 633 121
2019
(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 966 272 589 546 367 147
Associates and joint ventures 134 41 302 137 258 -
Total 1 100 313 891 683 624 147
Intercompany balances are disclosed in the table below.
Subsidiaries Associates / Joint ventures
(NOK million) 31.12.2020 31.12.2019 31.12.2020 31.12.2019
Non-current assets
Other non-current receivables 2 323 2 374 1 1
Total non-current assets 2 323 2 374 1 1
Current assets
Trade receivables 601 418 98 115
Other current receivables 230 198 - -
Total current assets 831 616 98 115
Total assets 3 154 2 990 99 116
Trade creditors 94 90 25 19
Other short term liabilities 676 229 265 321
Total liabilities 770 318 290 340
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Jotun A/S
64 I Jotun Annual Report 2020