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JOTUN GROUP
22 RELATED PARTIES
Two parties are deemed to be related if one party can influence
the decisions of the other.
During 2017 we purchased and sold goods and services to
various related parties in which we hold a 50 per cent or less
equity interest. Investments in associated and joint venture
companies are presented in note 2, shareholder and dividend
information is presented in note 17 and subsidiaries are
presented in note 18.
TERMS AND CONDITIONS OF TRANSACTIONS WITH
RELATED PARTIES
The transactions between related parties are purchases and
sales of finished goods, raw materials and technical service.
Joint expenses are distributed in accordance with agreed cost
contribution arrangements. Internal trading within the Group is
carried out in accordance with arm’s length principles.
For raw materials, the normal process for producing entities
is to call off volumes on frame agreements entered into at
a corporate level. Raw materials are regularly sold within
the Group (from large to small entities), but the majority of
raw material supplies comes directly from external suppliers.
Sales transactions between the Group and joint ventures and
associates are mainly related to sales of finished goods from
producing units to non-producing units. Other situations can be
levelling of stock between entities and coordination of deliveries
to customers around the world. Prices are based on fixed
intercompany price lists.
Outstanding balances at the year-end are unsecured and
settlement occurs in cash. There have been no guarantees
provided or received for any related party receivables or payables.
As of 31 December 2017, the Group has not recorded any
impairment of receivables relating to amounts owed by related
parties (2016: NOK Nil). This assessment is undertaken each
financial year by examining the financial position of the related
party and the market in which the related party operates. The
amount of these transactions is shown in the table below.
OTHER TRADE AND
2017 PURCHASE INTEREST ON CURRENT OTHER
(NOK THOUSAND) SALES TO FROM LOAN TO LOANS TO LIABILITIES RECEIVABLES
Joint ventures 879 385 485 418 – 379 90 521 232 265
Associated companies 25 400 174 032 1 286 119 167 820 24 594
Total 904 785 659 450 1 286 499 258 341 256 859
OTHER TRADE AND
2016 PURCHASE INTEREST ON CURRENT OTHER
(NOK THOUSAND) SALES TO FROM LOAN TO LOANS TO LIABILITIES RECEIVABLES
Joint ventures 826 909 404 819 – 195 78 571 207 770
Associated companies 99 401 127 145 1 349 178 110 103 63 170
Total 926 311 531 964 1 349 374 188 674 270 940
Aside from the transactions with joint ventures and associates
described in the table above, there have been very few
transactions between the Jotun Group and other related parties
during 2017.
COMPENSATION OF KEY MANAGEMENT PERSONNEL OF
THE GROUP AND BOARD OF DIRECTORS COMPENSATION
Details on remuneration and shares held for the Board of
Directors and Group management is described in note 3 and
17. Besides remuneration and shares, Jotun Group has not
identified any transactions with the Board of Directors or Group
Management during 2017.