4.4 Financial risk management
The company’s financial risks and the management of these are in all material aspects identical to the
disclosures made in Note 4.4 to the consolidated financial statements, unless otherwise stated below.
To reduce currency risk in cash flows up to 16 months ahead, Jotun A/S uses foreign currency options
and forward currency contracts to ensure predictability in the short to medium term cash flows. As of
31 December 2019, Jotun A/S has hedged 38 per cent of its expected net cash flows over the next 12
months.
The currency exposures related to external loans in foreign currency given to Jotun entities are disclosed
in the table below.
(NOK THOUSAND) 31.12.2019 31.12.2018
Local currency Currency amount NOK Currency amount NOK
MYR 173 900 373 734 71 290 619 261
USD 39 600 347 997 173 900 365 758
EUR 29 837 294 048 27 837 276 593
IDR 422 000 000 267 168 457 250 000 276 316
CNY 191 540 241 781 191 540 241 781
GBP 18 000 207 986 1 432 358 178 676
RUB 1 150 000 162 753 918 900 152 039
PHP 918 900 159 430 22 000 140 248
SGD 22 000 143 669 8 000 88 532
TRY 22 676 33 501 22 676 37 270
Other 126 051 132 201
Total 2 358 118 2 508 674
5.1 Taxation
Back to Notes for the Parent Company
Income tax reported in the income statement
(NOK THOUSAND) 2019 2018
Current income tax charge:
Tax payable 206 442 232 270
Deferred tax:
Relating to original and reversal of temporary differences -32 877 -65 066
Income tax expense reported in income statement 173 565 167 204
Reconciliation of Norwegian nominal statutory tax rate to effective tax rate
In the following table reported income tax is reconciled with the calculated tax expense based on the
Norwegian tax rate of 22 per cent (23 per cent in 2018). The main components are specified below.
(NOK THOUSAND) 2019 2018
Profit before tax as reported in the income statement 812 583 894 086
Income taxes at statutory tax rate 22 % 178 768 205 640
Exempted tax on dividends -23 % -188 332 -229 589
Tax on dividends and surplus in controlled foreign companies (CFC) 7 % 60 632 47 189
Non-deductible expenses and non-taxable income* 10 % 84 463 36 603
Correction previous year and change in temporary differences 0 % -2 286 49 654
Taxation outside Norway less deductible in Norwegian Tax 5 % 40 320 57 708
Total income tax expense 173 565 167 204
Effective tax rate 21 % 19 %
* Non-deductible expenses are primarily related to write-down of shares. See Note 5.6 for further
information.
Specification total tax payable
(NOK THOUSAND) 31.12.2019 31.12.2018
Tax payable for the year 206 442 232 270
Net foreign tax paid -48 944 -50 939
Norwegian tax settlement for previous years 12 741 -33 839
Withholding taxes receivable -69 440 -63 178
CFC tax receivable (NOKUS) -22 290 -22 886
SkatteFUNN (R&D tax incentive scheme) receivable -3 409 -9 000
Total tax payable in Norway and abroad 75 101 52 429
Tax payable in Norway 65 003 45 660
Specification of deferred tax
(NOK THOUSAND) 31.12.2019 31.12.2018
Non-current assets -29 659 3 757
Current assets -73 784 -56 173
Liabilities -654 856 -561 021
Net temporary differences -758 299 -613 437
Tax rate 22 % 22 %
Deferred tax asset recognised in the statement of financial position 166 826 134 956
JOTUN A/S
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