05/06/2012 — SANDEFJORD, Norway — (BUSINESS WIRE)

Jotun recorded a nine per cent growth in operating revenues in the
first four months of 2012 as sales increased both in volume and value
terms.

In the first four months of 2012 the Jotun Group recorded operating
revenues of NOK 3 784 million, up from NOK 3 482 million in the same
period last year. The group’s profit for the period rose to NOK 295
million, from NOK 261 million in the first four months of 2011.

Key operational highlights

• Sales growth in all four divisions
  • Excellent results for Paints division in the Middle East and South
    East Asia
  • Improved results for the divisions Dekorativ and Powder Coatings
  • Reduced results in Coatings division
• Gross margin improved
• Opened new state-of-the art factory in Sandefjord

All of Jotun’s four divisions reported higher operating income during
the period.

• Strong sales growth in the Paints, the group’s second largest in terms
  of revenues, was driven by robust performances in Saudi Arabia, Oman,
  UAE, Pakistan, Indonesia, Malaysia and Thailand.
• In the Dekorativ, sales rose across the exterior, interior and
  professional segments, supported by all-time-high sales in Sweden, and
  growth in Denmark and Scanox, as well as for Jotun Brands. The
  division inaugurated the new factory in Sandefjord, which is also
  Jotun’s single largest investment to date.
• Coatings recorded higher sales, but growth was offset by a drop in
  profits and a decline in margins, due to challenging economic
  conditions in Europe and reduced activity in other select markets. The
  shipping industry is experiencing over-capacity issues, which have
  depressed freight rates and slowed new orders, which has impacted the
  Marine Coatings segment.
• Powder Coatings saw sales rise sharply in the Middle East and increase
  in South East Asia. Meanwhile, the division experienced lower sales in
  Central Europe, and operations in Norway remained loss-making.

Solid financial position

Jotun’s equity ratio was at 50 per cent at the end of the reporting
period. The company had sufficient liquidity and little net interest
bearing debt.

Morten Fon, Jotun’s CEO, comments:

“We have had a satisfactory start to the year in terms of both sales and
profitability. Strength in decorative paints offset challenges seen in
marine coatings, and slow economic development in Europe has been
outweighed by growth in other geographies, showing the resilience of
Jotun’s business model in the face of challenging global economic
conditions.

Ahead, we expect continued sales growth based our established presence
in key growth economies, and earnings may show signs of improvement as
raw material prices stabilise and pricing measures take effect.”

KEY FIGURES (IFRS, in NOK million) January 1 – April 30
		2012		2011		% change
Operating revenues		3 784		3 482		+ 9 %
Operating profit (EBIT)		432		362		+ 16 %
Profit for the period		295		261		+ 13 %

CONTACT:

Jotun
Morten Fon, President and CEO
mobile no.: (+47) 909
19 822

KEYWORDS: Europe Asia Pacific Norway Middle East

INDUSTRY KEYWORDS: Manufacturing Chemicals/Plastics Other Manufacturing Construction & Property Other Construction & Property

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