9 BOARD OF DIRECTORS management participated in a series of seminars in different regions to focus on anti-corruption. Anti-corruption training is included in the induction programme for new employees as well as in Jotun Academies. 8. DIVERSITY Jotun is committed to eliminating discrimination in all forms. Jotun recognises the value of a diverse workforce and has deliberately sought to recruit individuals of different ethnic, religious, and national origin to make the company stronger. The company cooperates with several institutions that facilitate job training for people who, for different reasons, are unable to fulfil usual working commitments. In addition, Jotun works to ensure that women are provided with the same opportunities as men. To ensure equal opportunity, Jotun has implemented uniform, professional and transparent recruitment, policies, tools and practices. Two of the seven senior management positions that report to the President & CEO are female. Of those with personnel responsibility in Jotun A/S, 29 per cent are women (30 per cent in 2015). Women make up nine per cent of skilled workers (10 per cent in 2015), while the corresponding percentage for women among office staff is 29 per cent, compared to 36 in 2015. While Jotun employees come from many different cultures and backgrounds and work in over 200 different locations around the world, we are joined by our common set of values; Loyalty, Care, Respect and Boldness. Jotun believes that diversity is a strength, and is actively promoting tolerance and teamwork. 9. FUTURE PROSPECTS Like all multinational companies, Jotun’s business is impacted by both global and regional trends and events. Global economic trends that impact Jotun’s business include raw material prices, the price of oil, currency fluctuations, international trade volume and, more generally, global GDP growth. Political trends likely to impact Jotun’s business are more difficult to predict, but may include changing political alliances, threats to existing trade relationships (protectionism) and the ever-present risk of conflict between nations. Regional trends are specific to each country where Jotun is active and may include natural disasters, civil unrest and localised economic turmoil. While global and regional trends are monitored carefully, the Board’s primary focus remains on achieving sustainable and profitable growth, not only by increasing production capacity, but also by leveraging efficiencies to lower the average production cost per entity. Jotun’s strategy, which is grounded in segment diversity, organic growth and a differentiated approach to diverse markets, allows the company to shift resources to different segments when needed, maintain a strong balance sheet and adjust quickly to market changes in different regions. This durable strategy has allowed the company to achieve uninterrupted growth for more than a decade, through many crises, both global and local. Looking ahead, the Board will continue to consider and approve plans to expand existing factories, build new production facilities and warehouses, invest in new markets and in tools and systems to improve efficiency. To remain competitive, Jotun must also continue to develop new paints and coatings solutions. In 2016, the company began construction of a new headquarters and R&D centre in Sandefjord, Norway – the company’s largest investment to date. In 2016, Jotun completed construction of a new factory in Oman, a distribution warehouse in Thailand, and opened a sales office in Taiwan. Jotun also began construction of new factories in Myanmar, The Philippines, and Malaysia, among other projects. The Board notes that declines in newbuilding orders and decreased investments in offshore development will slow the company’s growth in the short term, and that new unforeseen events may impact our business going forward. However, the Board is confident that Jotun’s strong balance sheet, flexible approach to different markets and segments, and ability to respond quickly to market changes will secure the company’s long-term development. Odd Gleditsch d.y. Chairman Richard Arnesen Einar Abrahamsen Nicolai A. Eger Birger Amundsen Ingrid Luberth Terje Andersen Karl Otto Tveter Morten Fon President and CEO Sandefjord, Norway, 9 February 2017 The Board of Directors Jotun A/S
Jotun Annual Report 2016
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