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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) 2021 2020
Revenue from contracts with customers 21 423 19 735
Revenue from contracts with customers - associates and joint ventures 899 891
Total revenue from contracts with customers 22 321 20 626
Other revenue 171 123
Other revenue from associates and joint ventures 316 321
Total operating revenue 22 809 21 070
(NOK million) 2021 2020
South East Asia and Pacific 5 371 5 060
North East Asia 4 140 3 725
Middle East, India and Africa 3 654 3 346
Scandinavia 3 474 3 449
West Europe 2 609 2 506
East Europe and Central Asia 2 440 2 043
Americas 632 497
Total revenue from contracts with customers 22 321 20 626
(NOK million) 2021 2020
Decorative 8 389 8 005
Protective 7 344 6 354
Marine 4 538 4 534
Powder 2 050 1 733
Total revenue from contracts with customers 22 321 20 626
Cost of Goods Sold 12 480 10 643
Gross Profit 9 842 9 983
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.
33 %
PROTECTIVE COATINGS
2020: 31 %
20 %
MARINE COATINGS
2020: 22 %
38 %
DECORATIVE PAINTS
2020: 39 % Group sales
9 %
POWDER COATINGS
2020: 8 %
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.
Jotun Group
22 I Jotun Annual Report 2021