SECTION 4
This section includes notes related to Jotun’s capital structure and financial items,
including financial risks.
Capital Structure and
Financial Items
Jotun is in a sound financial position with an
equity ratio above 50 per cent, well above the loan
covenant requirement of minimum 25 per cent.
Implementation of IFRS 16 Leases effective from
1 January 2019 has affected the ratio negatively by
approximately 1.3 per cent.
The strong financial performance in 2019 led to a
reduction of the Group’s leverage ratio (Net debt/
EBITDA) to 0.8, significantly below the loan covenant
requirement of maximum 4.0.
As a consequence of Jotun’s global footprint in
its operations, investments and financing, Jotun
is exposed to financial risks related to currency
exchange rates, interest rates, raw material prices
and customer credit. These risks are primarily
handled through the companies normal operations
and in accordance with the Group’s Treasury policy.
50.1 %
Equity / asset ratio, in %
2018: 50.7 %
0.8
Net debt / EBITDA
2018: 1.3
18.6 %
Return on capital employed
2018: 12.9 %
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