21 JOTUN GROUP Note 2 INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES Jotun Group has investments in associated companies in the Middle East involved in production and sales of products within all of the Group’s four segments, and joint ventures in North East Asia involved in the production and sales of marine and protective coatings. The Group’s interests in associated companies and joint ventures are recognised in the consolidated financial statement accounts applying the equity method. Summarised financial information, based on its IFRS financial statements, and reconciliation with the carrying amount of the investment in consolidated financial statements are set out below. a) Overview Jotun Group’s total overview of investments in associated companies and joint ventures: 2014 2013 Associated (NOK thousand) companies Joint ventures Total Associated companies Joint ventures Total As of 1 January 576 678 586 640 1 163 318 495 816 516 557 1 012 374 Net profit / (loss) during the year 276 854 79 498 356 352 247 128 39 833 286 961 Exchange differences 186 390 163 442 349 832 52 706 59 194 111 899 Dividend -308 001 -70 480 -378 481 -218 972 -28 944 -247 916 As of 31 December 731 921 759 100 1 491 021 576 678 586 640 1 163 318 b) Associated companies Investments in associates are investments in companies in which the Group has significant influence by virtue of its ownership interest. These are usually companies in which Jotun holds a 20-50 per cent interest share. Jotun Group has the following investments in associated companies (all the associated companies are limited liability companies): Red Sea Paints Co. Ltd Although the Group holds more than 50 per cent of the ownership interest in Jotun Abu Dhabi Ltd., the Group does not have the power over the investee, or the ability to exercise significant influence. This investment is classified as an associated company, for more details see note 1. A summary of the financial information on the individual associated companies as of 2014 and 2013, based on 100 per cent figures: Red Sea Paints Co. Ltd Jotun Saudia Co. Ltd. Jotun Saudia Co. Ltd. Jotun Yemen Paints Ltd. Jotun Yemen Paints Ltd. Jotun U.A.E. Ltd. (LLC) Jotun U.A.E. Ltd. (LLC) Jotun Abu Dhabi Ltd. (LLC) Jotun Abu Dhabi Ltd. (LLC) Jotun Powder Coatings U.A.E. Ltd (LLC) Jotun Powder Coatings U.A.E. Ltd. (LLC) Jotun Powder Coatings Saudi Arabia Co. Ltd. Jotun Powder Coatings Saudi Arabia Co. Ltd. Entity (NOK thousand) 2014 (NOK thousand) Total Country Saudi Arabia Saudi Arabia Yemen U.A.E. U.A.E. Saudi Arabia U.A.E. Ownership interest 40.0 % 40.0 % 34.4 % 41.5 % 51.6 % 46.6 % 47.0 % As of 1 January 2014 24 504 190 014 283 171 747 97 530 55 809 36 790 576 678 Net profit / (loss) during the year 3 351 105 527 -114 99 282 43 943 6 953 17 912 276 854 Exchange differences 6 464 64 157 40 59 010 30 642 14 337 11 741 186 390 Dividend -1 593 -109 925 - -107 223 -73 483 - -15 777 -308 001 As of 31 December 2014 32 726 249 772 208 222 816 98 632 77 100 50 667 731 921 Non-current assets 48 133 306 186 6 447 110 627 47 163 59 210 71 748 Current assets 105 120 606 051 4 413 622 169 260 466 178 470 167 433 Total assets 153 253 912 236 10 860 732 795 307 630 237 680 239 182 Equity 81 815 624 431 604 540 162 191 148 165 450 113 647 Non-current liabilities 19 855 42 026 5 938 19 571 842 15 714 4 258 Current liabilities 51 584 245 779 4 319 173 063 115 640 56 516 121 276 Total equity and liabilities 153 253 912 236 10 860 732 795 307 630 237 680 239 182 Revenues - 1 250 182 698 1 258 535 448 325 277 157 346 733 Profit / (loss) for the year 8 378 263 817 -332 239 235 85 161 14 921 38 110
Jotun Annual Report 2014
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