22 JOTUN GROUP INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES 2 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 for the Group’s investments in associated companies and joint ventures is set out below. The figures are based on IFRS financial statements for the respective companies. OVERVIEW The Jotun Group’s total overview of investments in associated companies and joint ventures: 2016 2015 Associated Joint Associated Joint (NOK THOUSAND) companies ventures Total companies ventures Total Balance as of 1 January 924 380 915 430 1 839 810 731 921 759 100 1 491 021 Net profit / loss (–) during the year 560 735 128 863 689 598 408 624 153 388 562 013 Exchange differences –13 089 –39 251 –52 339 167 823 111 877 279 699 Items charged to equity – 1 991 1 991 – –1 289 –1 289 Dividend –460 314 –252 257 –712 571 –383 988 –107 646 –491 634 Balance as of 31 December 1 011 712 754 776 1 766 487 924 380 915 430 1 839 810 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. The Jotun Group has the following investments in associated companies: Jotun Jotun Jotun Powder Jotun Red Sea Jotun Yemen Jotun Abu Coatings Powder ENTITY Paints Saudia Paints U.A.E. Dhabi Saudia Arabia Coatings (NOK THOUSAND) Co. Ltd. Co. Ltd. Ltd. Ltd. (LLC) Ltd. (LLC) Co. Ltd. U.A.E. Ltd. (LLC) 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% Balance as of 1 January 2016 43 798 297 506 54 290 073 126 039 86 988 79 921 924 380 Net profit / loss (–) during the year 3 973 210 614 –563 205 614 89 323 –4 565 56 338 560 735 Exchange differences –758 –450 –39 –424 –172 –1 876 –9 371 –13 089 Dividend –4 592 –179 076 – –162 512 –69 504 – –44 630 –460 314 Balance as of 31 December 2016 42 421 328 594 –548 332 751 145 687 80 547 82 259 1 011 712 Although the Group holds more than 50 per cent of the ownership interest in Jotun Abu Dhabi Ltd., the Group does not control the company as part of the ownership interest is indirect through a non-controlling entity. This investment is therefore classified as an associated company (see note 1 for more details). A summary of the financial information on the individual associated companies as of 2016 and 2015, based on 100 per cent figures: Jotun Jotun Jotun Powder Jotun Red Sea Jotun Yemen Jotun Abu Coatings Powder 2016 Paints Saudia Paints U.A.E. Dhabi Saudia Arabia Coatings (NOK THOUSAND) Co. Ltd. Co. Ltd. Ltd. Ltd. (LLC) Ltd. (LLC) Co. Ltd. U.A.E. Ltd. (LLC) Non-current assets 79 433 410 319 1 780 127 127 57 520 70 469 93 609 Current assets 89 115 665 870 1 157 750 591 273 252 157 275 197 638 Total assets 168 548 1 076 188 2 937 877 718 330 772 227 744 291 247 Equity 106 053 821 486 –1 591 805 561 282 339 172 848 201 296 Non-current liabilities 19 859 61 159 4 528 20 565 1 461 9 842 1 400 Current liabilities 42 635 193 544 – 51 592 46 973 45 055 88 551 Total equity and liabilities 168 548 1 076 188 2 937 877 718 330 772 227 744 291 247 Revenues – 1 898 440 – 1 866 689 719 562 226 561 497 319 Profit /loss (–) for the year 9 931 526 535 –1 634 495 456 173 107 –9 796 119 869
Jotun Annual Report 2016
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