FINANCIAL PERFORMANCE
77
Working Capital
Working capital increased to NOK 5 929 million as of
31 December 2018 (2017: NOK 5 467 million). The increase is
mainly tied to further growth in revenues.
Net interest-bearing debt
The net interest-bearing debt for the Group was
NOK 2 526 million at year-end 2018 compared to
NOK 2 029 million as of 31 December 2017, and net interestbearing
debt relative to the operating profit before amortisation
and depreciation (EBITDA) was 1.3 (2017: 1.1). The Group’s
main sources of financing are loans in the Norwegian bond
market and loans from the Group’s relationship banks. At yearend
2018, Jotun A/S had NOK 1 400 million in long-term bonds
and NOK 884 million in USD bank debt, of which
NOK 161 million was short-term, outstanding. External
borrowing in the subsidiaries is primarily short-term and through
local banks.
Jotun A/S has NOK 1 200 million of long-term credit lines. This
committed funding serves as a back stop for certificate loans as
well as a strategic reserve for short-term financing of the Group.
At year-end these credit lines, in addition to a short-term credit
line of NOK 100 million, were all unused.
Shareholder equity
Total equity including non-controlling interests amounted to
NOK 8 469 million (2017: NOK 8 254 million). The increase
in total equity is mainly due to the net effect of profit for the
year of NOK 674 million, share capital injection from minority
shareholders of NOK 13 million, and dividend payments of in
total NOK 473 million. The equity ratio decreased two percentage
points from 2017 to 51 per cent at the end of the year.
The proposed dividend for Jotun A/S for 2018 amounting to
NOK 428 million will not be recognised in equity until finally
declared in 2019.
Cash flow
Cash generated from operating activities improved by
NOK 171 million to NOK 1 745 million. However, due to higher
financial costs and tax payments, net cash flow from operating
activities decreased by NOK 80 million to NOK 1 018 million.
Workforce
In 2018, Jotun Group had on average 7 069 full-time equivalents
related to its ongoing business in Jotun A/S and its subsidiaries
(2017: 6 976 average full-time equivalents). Including employees
in joint ventures and associates, Jotun had in total 9 872
employees at year end 2018 (2017: 9 789 employees).