Joint ventures
The Group has the following investments in joint ventures:
(NOK THOUSAND)
Chokwang Jotun
Ltd.
Jotun COSCO Marine
Coatings (Qingdao)
Co. Ltd
Jotun COSCO
Marine Coatings
(H.K.) Ltd. Total
Country South Korea China China
Ownership interest 50.0 % 50.0 % 50.0 %
Carrying amount 1 January 215 766 233 185 87 638 536 589
Net profit / (loss) during the year 22 926 -519 43 725 66 132
Exchange differences -4 580 -154 2 353 -2 381
Carrying amount as of 31 December 234 113 232 512 133 716 600 341
Summary of financial information for the individual joint ventures based on 100 per cent figures:
2019
(NOK THOUSAND)
Chokwang
Jotun Ltd.
Jotun COSCO Marine
Coatings (Qingdao)
Co. Ltd.
Jotun COSCO
Marine Coatings
(H.K.) Ltd. Total
Non-current assets 375 578 472 550 390 033 1 238 161
Current assets 646 270 1 040 362 519 560 2 206 192
Total assets 1 021 848 1 512 913 909 593 3 444 354
Equity 468 226 465 024 604 212 1 537 462
Non-current liabilities 97 911 58 767 - 156 678
Current liabilities 455 711 989 121 305 381 1 750 213
Total equity and liabilities 1 021 848 1 512 912 909 593 3 444 354
Revenues 1 551 484 1 944 364 1 051 920 4 547 769
Net profit / (loss) for the year 45 853 -1 037 87 450 132 265
2018
(NOK THOUSAND)
Chokwang
Jotun Ltd.
Jotun COSCO Marine
Coatings (Qingdao)
Co. Ltd.
Jotun COSCO
Marine Coatings
(H.K.) Ltd. Total
Non-current assets 364 212 498 501 383 231 1 245 944
Current assets 522 574 894 379 447 499 1 864 451
Total assets 886 786 1 392 880 830 729 3 110 395
Equity 431 533 466 370 506 237 1 404 140
Non-current liabilities 67 683 52 119 - 119 802
Current liabilities 387 570 874 391 324 492 1 586 453
Total equity and liabilities 886 786 1 392 880 830 729 3 110 395
Revenues 975 981 1 629 524 949 469 3 554 974
Net profit / (loss) for the year -49 265 -109 794 116 645 -42 414
5.6 Related parties
Two parties are deemed to be related if one party can influence the decisions of the other.
Back to Notes for the Group
During 2019, goods and services were purchased and sold to various related parties in which the Group
holds a 50 per cent or less equity interest. Investments in associates and joint ventures are presented in
Note 5.5, shareholder and dividend information are presented in Note 5.8.
The transactions between related parties are mainly sales and purchases of finished goods. Joint
expenses are distributed in accordance with agreed cost contribution arrangements.
Outstanding balances at the year-end are unsecured and there have been no guarantees provided or
received for any related party receivables or payables. As of 31 December 2019, the Group has not recorded
any impairment of receivables relating to amounts owed by related parties (2018: NOK 0). 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.
2019
(NOK THOUSAND)
Sales of
goods to
Purchases of
goods from
Other
revenue
from Loans to
Interests on
loan to
Other
current
liabilities
Trade and
other
receivables
Joint ventures 835 757 416 681 121 339 - 52 136 629 189 063
Associates 135 480 508 155 173 597 1 382 - 146 232 80 440
Total 971 236 924 837 294 936 1 382 52 282 861 269 503
2018
(NOK THOUSAND)
Sales of
goods to
Purchases of
goods from
Other
revenue
from Loans to
Interests on
loan to
Other
current
liabilities
Trade and
other
receivables
Joint ventures 958 309 315 067 93 112 26 332 891 135 433 208 445
Associates 14 438 502 392 152 460 1 361 728 287 659 91 331
Total 972 747 817 459 245 572 27 693 1 619 423 092 299 776
Aside from the transactions with associates and joint ventures, described in the table above, territorial
rights to the Qatari market was acquired by Jotun A/S from Jotun U.A.E. Ltd. (LLC) for NOK 237 million.
After eliminations, NOK 138 million has been capitalised as intangible assets, ref. Note 3.2.
Details on remuneration and shares held for the Board of Directors and Group Management is described
in Notes 5.3 and 5.8. Besides remuneration and shares, the Group has not identified any transactions
with the Board of Directors or key management personnel during 2019.
5.7 Subsidiaries
For the list of subsidiaries included in the consolidated accounts, refer to Note 5.6 to the Parent
Company Financial Statements.
JOTUN GROUP
47