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JOTUN A/S
18 FINANCIAL INVESTMENTS
( SHARE CAPITAL, FACE VALUE AND BOOK VALUE IN THOUSAND) BOOK
SHARE NO. OF FACE VALUE STAKE
COMPANY CITY COUNTRY CURRENCY CAPITAL SHARES VALUE NOK %
Nor-Maali OY Lahti Finland EUR 8 10 000 3 8 180 33.44
Other companies – – – – – – 548 –
Total 8 728
19 CONTINGENT LIABILITIES
Contingent liabilities are not recognised in the annual accounts.
A contingent liability is a present obligation that arises from past
events but is not recognised because it is not probable (less likely
than not) that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of
the obligation cannot be measured with sufficient reliability.
PRODUCT LIABILITY CLAIMS AND DISPUTES
Jotun A/S is, through its on-going business, involved in product
liability claim cases and disputes in connection with the
company’s operational activities. Provisions have been made
to cover the expected outcome of disputes insofar as negative
outcomes are likely and reliable estimates can be made. In
evaluating the size of the provisions, expected insurance cover
is taken into account separately. Jotun acknowledges the
uncertainty of the disputes, but believes that these cases will be
resolved without significant impact on the company’s financial
position. Jotun Group expects that a lawsuit will be served
against Jotun A/S and Chokwang Jotun Ltd. in the near future.
This lawsuit is related to a claim in the Fort Hills oil sands mining
project in Alberta, Canada. This is a large and complex project
where there are many uncertainties, and we will contest the
customer’s claim. As a result of this position, no provision has
been performed for a negative outcome of a lawsuit.
ENVIRONMENTAL MATTERS
A number of production facilities and product storage sites
have been inspected regarding environmental conditions in the
soil. For clean-up projects where implementation is considered
to be probable and for which reliable estimates have been
done provisions are made accordingly (ref. note 9). Due to
uncertainties inherent in the estimation process, it is possible that
such estimates could be revised in the near term. In addition,
conditions which could require future expenditures may be
determined to exist for various sites. The amount of such future
cost is not determinable due to the unknown timing and extent
of corrective actions which may be required.
All of Jotun’s activities are carried out in accordance with local
laws and regulations, and Jotun HSE requirements. These laws
and regulations are subject to changes, and such changes may
require that the company makes investments and/or incurs costs
to meet more stringent emission standards or to take remedial
actions related to e.g. soil contamination.