8
BOARD OF DIRECTORS
CHAIRMAN OF THE BOARD, ODD GLEDITSCH D.Y.
A CHALLENGING YEAR
Jotun’s growing size and complexity has exposed the company to new risks, resulting in an increased focus
on worker safety, environmental performance, organisational efficiency and a more rigorous approach to
corporate governance.
Board of Directors, from left: Per Kristian Aagaard, Nicolai A. Eger, Richard Arnesen, Birger Amundsen, Odd Gleditsch d.y.
(Chairman), Terje Andersen, Einar Abrahamsen and Karl Otto Tveter.
In 2017, Jotun’s growth was slowed by weak markets for new
construction of vessels and offshore installations. In addition,
Jotun’s gross margins were impacted by increased prices of
critical raw materials. The Board is satisfied with how the
company responded to these conditions, but sees room for
improvement in other areas. For example, Jotun’s 2017 profits
have been impacted by a number of claims, first registered in
2016. The Board is confident that systems put in place will help
the company reduce risk for claims in the future.
PRIORITY AREAS
Jotun’s growth strategy relies on effective project execution.
The Board notes that three new factories built in 2017
(Malaysia, Myanmar and the Philippines) were completed on
or below budget. The Board is satisfied with a more structured
approach to corporate governance and compliance, consistent
with directives issued by the European Commission. The Board
is encouraged by management’s attention to governance
issues, notably its efforts to implement a strong anti-corruption
programme that has been shared throughout the network.
The health and safety of Jotun’s workers remains a top priority
for the company. The Board continues to support all initiatives
that safeguard the welfare of our employees; a level of care that
extends to contractors hired by Jotun. For example, the Board
was pleased that during the construction of Jotun’s new factory
in Myanmar, there were zero Lost Time Injury (LTIs) recorded
across about 800 000 man hours of labour. The Board also
actively encourages initiatives to reduce the company’s impact
on the environment.
CONTINUED VALUE CREATION
Jotun’s remarkable growth over the past decade owes much
to the skill and dedication of the company’s workforce, timely
investments in key markets, and an ability to adapt quickly to
market conditions. In years with unfavourable circumstances,
Jotun’s presence in different markets, segments and low debt
have helped mitigate financial risk, allowing the company
to pursue a long-term approach to growth. While the Board
will welcome increased profitability in the years ahead, the
company’s financial position remains strong.