Jotun Group’s share of total equity in associates and joint
ventures amounts to NOK 1 598 million (2019: NOK 1 486
million) and is reported as non-current assets in the statement
of financial position.
WORKING CAPITAL
Due to the elevated uncertainty following the pandemic, Jotun
intensified its efforts to manage liquidity and working capital.
As a result, operating working capital decreased to
NOK 4 975 million as of 31 December (2019: NOK 5 409
million). The decrease is mainly tied to a reduction in accounts
receivable, despite growth in revenues.
NET INTEREST-BEARING DEBT
The net interest-bearing debt for the Group decreased from
NOK 2 581 million as of 31 December 2019 to NOK 1 514
million at year-end 2020. This contributed to a reduction in net
interest-bearing debt relative to the operating profit before
amortisation and depreciation (EBITDA) from 0.8 at the end of
2019 to 0.4 as of 31 December 2020.
The Group’s main sources of long-term funding are bonds
issued in Norway and bank loans. At year-end, Jotun A/S had
NOK 2 400 million in outstanding bonds, of which NOK 2 000
million was long-term. The remaining balance of banks loans
was NOK 552 million, of which NOK 394 million was long-term.
Other external borrowings in the subsidiaries are primarily
short-term loans from local banks.
Financial performance
In addition, Jotun A/S has NOK 1 700 million of long-term
credit lines. This committed funding from the Group’s
relationship banks serves as a strategic liquidity reserve for the
Group and a back stop for short-term certificate loans. At yearend
these credit lines were all unused.
SHAREHOLDER EQUITY
Total equity including non-controlling interests amounted to
NOK 11 128 million (2019: NOK 9 584 million). The increase in
total equity is mainly due to the net effect of profit for the year
of NOK 2 378 million. The equity ratio increased 4 percentage
points from 2019 to 54 per cent at the end of the year.
The proposed dividend for Jotun A/S for 2020 amounting to
NOK 599 million will not be recognised in equity until finally
declared in 2021.
CASH FLOW
Cash generated from operating activities improved by NOK
1 121 million to NOK 4 294 million. At year-end, the Group
had a positive cash position of NOK 2 956 million compared to
NOK 1 903 million as of 31 December 2019.
WORKFORCE
In 2020, Jotun Group had on average 7 300 full-time equivalents
related to its ongoing business in Jotun A/S and its subsidiaries
(2019: 7 200 average full-time equivalents). Including
employees in associates and joint ventures, Jotun had in total
9 900 employees at year-end 2020 (2019: 10 000 employees).
Jotun Group Report 2020 I 81