Financial performance
Jotun Group Report 2021 I 79
Jotun Group’s share of total equity in associates and joint
ventures amounts to NOK 1 419 million (2020: NOK 1 598
million) and is reported as non-current assets in the statement
of financial position. The reduction is explained by dividend
repatriations to Jotun A/S exceeding the Group’s share of profit
from associates and joint ventures.
WORKING CAPITAL
Jotun maintained its focus on managing liquidity and working
capital throughout 2021. This helped bring down operating
working capital in per cent of revenue to 27.4 per cent.
However, operating working capital increased to NOK 6 227 as
of 31 December (2020: NOK 4 975 million), mainly due to the
extraordinary rise in raw material prices and a build-up of safety
stocks to manage global supply chain challenges. In addition,
strong sales growth led to an increase in customer receivables.
NET INTEREST-BEARING DEBT
The net interest-bearing debt for the Group was NOK 1 807
million as of 31 December 2021, compared to NOK 1 514 million
as of 31 December 2020. The increase is primarily driven by
short-term borrowings in the subsidiaries to finance working
capital needs. Net interest-bearing debt relative to operating
profit before amortisation and depreciation (EBITDA) was 0.5 as
of 31 December 2021 (2020: 0.4).
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 2 540 million in outstanding bonds, of which NOK 1 900
million was long term. The remaining balance of banks loans
was NOK 408 million, of which NOK 245 million was long-term.
Other external borrowings in the subsidiaries are primarily
short-term loans from local banks.
In addition, Jotun A/S had NOK 2 000 million in unutilised credit
facilities available at year-end. This committed funding from the
Group’s relationship banks serves as a strategic liquidity reserve
for the Group.
SHAREHOLDER EQUITY
Total equity, including non-controlling interests, amounted to
NOK 12 468 million (2020: NOK 11 128 million). The increase in
total equity is attributable to the profit for the year of NOK 2 111
million, which exceeded the impact of dividend payments and
negative currency translation effects. The Group’s equity ratio at
year-end was 53 per cent (2020: 54 per cent).
The proposed dividend for Jotun A/S for 2021, amounting to
NOK 770 million, will not be recognised in equity until finally
declared in 2022.
CASH FLOW
Cash generated from operating activities was NOK 3 059
million compared to NOK 4 294 million in 2020. The decrease is
attributable to lower earnings as well as a significant increase in
operating working capital. Still, the Group’s cash position was
further strengthened by NOK 432 million, with cash and cash
equivalents of NOK 3 388 million at year-end (2020: NOK 2 956
million). This resulted in a build-up of cash in Jotun A/S, while
cash holdings in the subsidiaries have been reduced.
WORKFORCE
At year-end 2021, the Group had 8 800 employees in Jotun
A/S and its subsidiaries (2020: 8 400). Including employees
in associates and joint ventures, Jotun had in total 10 300
employees at year-end 2021 (2020: 9 900 employees).