FINANCIAL PERFORMANCE
77
Working capital
Operating working capital increased to NOK 5 409 million as of
31 December 2019 (2018: NOK 5 359 million). The increase is
mainly tied to further growth in revenues.
While accounts receivable and inventories relative to operating
revenue were reduced, tightening of supplier payment terms
resulted in operating working capital in per cent of revenue
remaining unchanged at 30 per cent.
Net interest-bearing debt
Net interest-bearing debt for the Group was NOK 2 581 million
at year-end 2019 compared to NOK 2 526 million as of
31 December 2018, and net interest-bearing debt relative to the
operating profit before amortisation and depreciation (EBITDA)
was 0.8 (2018: 1.3). The Group’s main sources of financing
are loans in the Norwegian bond market and loans from the
Group’s relationship banks. At year-end 2019, Jotun A/S had
NOK 2 400 million in long-term bonds and NOK 731 million
in USD bank debt, of which NOK 163 million was short-term.
External borrowing in the subsidiaries is primarily short-term and
through local banks.
Jotun A/S has NOK 1 700 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 were all unused.
Shareholder equity
Total equity including non-controlling interests increased to
NOK 9 584 million at year-end (2018: NOK 8 469 million).
The increase is mainly attributed to the improved profit for
the year. The Group’s equity ratio at year-end was 50 per cent
(2018: 51 per cent). Implementation of IFRS 16 Leases in 2019
has negatively affected the ratio by approximately 1.3 per cent.
The proposed dividend for Jotun A/S for 2019 of NOK 547
million will not be recognised in equity until finally declared
in 2020.
Cash flow
Cash generated from operating activities improved by
NOK 1 428 million to NOK 3 173 million. Increased cash
flow from operating activities offset cash outflows tied to
investments in non-current assets of NOK 1 464 million.
At year-end, the Group had a positive cash position of
NOK 1 903 million compared to NOK 1 012 million as of
31 December 2018.
Workforce
In 2019, the Group had on average 7 200 full-time equivalents
related to its ongoing business in Jotun A/S and its subsidiaries
(2018: 7 069 average full-time equivalents). Including
employees in associates and joint ventures, Jotun had in total
10 007 employees at year-end 2019 (2018: 9 872 employees).