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2%

AM

10%

WE

14%

SCA

9%

EECA

19%

NEA

22%

SEAP

24%

MEIA

Sales 15.8

NOK billion

EBITA 1.8

NOK billion

EBITA margin 11% ROCE 21% +100

Countries

37

Factories

9 819

Employees

67

Companies

Jotun Today

Decorative paints Protective coatings Powder coatings Marine coatings

38% 10% 27% 25%

Our Business Areas

500 1000 1500 2000 2500 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Net Sales EBIT

Sales and EBIT

NOK million, Yearly

A story of growth…

22 407 15 785

4 681 3 215 1 087 187 Jotun 100% MEIA NEA Group sales to JV/AV Other income Jotun Group

• 0.5%

NOK million, actual rates and growth %

Revenue bridge

• 3%

100% figures vs Jotun Group reported figures

Companies where Jotun hold 50% or less are not represented in Group Figures

• Approx. 680 shareholders
• Gleditsch family holds 54 %
• 59 % of votes
• Orkla holds 42,5 %
• 38,2 % of votes
• Historically careful dividend policy
• Good cooperation between Orkla and

the Gleditsch family

Ownership structure

Corporate responsibility has high focus

• Values
• Compliance manual
• Business principles
• Leadership expectations
• Jotun decision making model
• Dilemma training
• “Jotun Green Steps”
• Audit of suppliers
• Project standards

10 | Group Finance | Financial Statements 2016

Jotun Group Operating Revenue

NOK million, actual rates, Year End

Sales slightly down after a outstanding 2015

10 659 11 351 12 034 13 171 16 282 15 785 9% 6% 6% 9% 24%

• 3%

2011 2012 2013 2014 2015 2016 Sales Growth A few things to be aware of:

• Lower intercompany sales

– Jotun Cosco, China

• Other income included

in operating revenue impacted by Egypt currency loss

11 | Group Finance | Financial Statements 2016

Jotun Group 690 1 126 1 257 1 314 2 064 1763 6.5 % 9.9 % 10.4 % 10.0 % 12.7 % 11.2 %

0% 5% 10% 15% 20% 25% 30% 500 1 000 1 500 2 000 2 500

2 011 2012 2013 2014 2015 2016

Sales EBIT%

EBITA slightly down

NOK million, actual rates

EBITA & EBITA margin

• Second best result ever
• Claims
• Equity ratio strong and further

improved 53 % (2015: 52%)

Excluding currency effects:

Record sales in Deco and Powder

NOK million, fixed rates

Sales per segment (100%-basis)

Average growth (CAGR) 7.3% 9.9% 10.9% 8.1% Total 9.3% 3 037 6 097 2 108 5 362 3 722 8 697 1 194 2 250 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Powder Deco Protective Marine

Indexed numbers, weighted average RM prices

Raw material trend – 2008-2016

Note 1: The ”Weighted average All” is based on all RMs in the scope of the report Note 2: Re-purchase prices indexed based on purchased currency converted to USD

Forecast

70 90 110 130 150 170 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Consolidated Corporate Marine Protective Decorative Decorative (SCA) Powder Consolidated raw material price

Maintaining the investment targets

985 1 201 1 209 1 332 6.1% 6.8% 5.4% 5.9% 2013 2014 2015 2016

Investments per year

NOK million, actual rates, % of sales

Investments per region 2016

NOK million, actual rates

MEIA; 427 SEAP; 306 CORP; 181 SCA; 129 EECA; 91 NEA; 90 WE; 81 AM; 26

Maintaining the investment targets

985 1 201 1 209 1 332 6.1 % 6.8 % 5.4 % 5.9 %

2013 2014 2015 2016

Investments year-end

NOK million, actual rates, % of sales

R&D

• Product development
• Labs: UK, Korea, India, Gimle

Production facilities

• Oman
• Philippines
• Myanmar
• Malaysia (Powder)
• Thailand

(Warehouse) Admin buildings

• Vindal and Gimle in Norway
• Mumbai office in India

Investing for future growth

New Factories:

• Completed 2016:

Brazil Oman

• Under construction:

Myanmar

• Started in 2016:

Philippines and Malaysia (Powder)

• Prospects:

Egypt

And: New R&D Centre and Group headquarters in Sandefjord

Started before summer - completed early 2019 Investment NOK 1.1 billion – 34.000m2 People 2019: 250 in HQ and 300 in R&D Capacity for growth

New HQ and R&D centre in Sandefjord, Norway

Investments and net debt development

(Jotun Group, actual rates)

439 1 336 1 919 2 235 4 265 3 956 5 208 7 107 7 576 8 990 11 452 13 906 14 374

• 18

213 351 121 261 195

• 167

429 1 220 1 193 1 602 2 108 1 667

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Invested in factories and working capital Accumulated Net debt (accumulated)

Equity ratio – Jotun Group

NOK Million at year end

Solid financial position

Covenant: > 25% Target: > 50% Covenant: Below 4.0 Target: Maintain IG rating 57% 56% 54% 51% 51% 52% 53% 2010 2011 2012 2013 2014 2015 2016

Equity ratio – Jotun Group

At year end

• 0.1

0.6 0.6 0.8 1 0.6 0.7

2010 2011 2012 2013 2014 2015 2016 Net debt/EBITDA – Jotun Group

At year end

Debt and Financing Structure

• Long term debt is held by Jotun A/S
• Companies receive long term funding from Jotun

A/S

• Companies have local short term bank lines
• Jotun A/S repatriates cash through dividends and

royalty payments from companies

• Dividend to shareholders evaluated each year in

light of capital needs and solidity target

• Jotun A/S has the last 4 years paid NOK 513 mill

in yearly dividends

Dividend policy. Jotun Group.

• Same equity

last 5 years

• Maintain equity

ratio above 50%

634 795 857 946 1416 1132 513 513 513 513 513 513 2011 2012 2013 2014 2015 2016 Profit for the year Dividend

Dividend payments vs Profit

NOK Million at year end

Debt funding - Jotun A/S

Maturity Loan type Amount (MNOK) May 2019 Bond 400 May 2021 Bond 300 Jan 2024 NIB loan* 1057 Sum 2357

*Nordic Investment Bank, USD 120 mill, USD rate 8,36

Loans per September 2016

Available credit lines - Jotun A/S

Long term Credit facilities per September 2016

Maturity Bank Amount (MNOK) Years to maturity August 2019 SEB 400 2 January 2021 DNB 400 3,5 Total 800

Financing needs going forward

• Organic growth expected to continue
• Financing needed for investments and working capital
• Mostly financed by internal cash surplus, but

moderate debt increase is expected given present dividend level

• New R&D facilities and offices in Sandefjord will

require financing in 2017/2018

− NOK 1 100 mill investment approved

• Norwegian bond market as primary funding source

• Jotun develops steady and as

planned

• Some headwinds in Marine and

Offshore markets

• Still a lot of opportunities in other

segments

• Good cash flow and robust balance

sheet

Summary