Limited Limited Sharpening Re-imagining Olam: Focus Offering - - PowerPoint PPT Presentation

Olam Olam Inter Interna national tional Limited Limited

Re-imagining Olam: Offering tomorrow’s products and services

Investor Presentation | May 2020

Sharpening Focus

Accelerating sustainable growth

2

Olam International Limited Investor Presentation May 2020

Cautionary note

• n forward-looking statements

This presentation may contain statements regarding the business of Olam International Limited and its subsidiaries (‘Group’) that are of a forward-looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are intended to be identified by words such as ‘believe’, ‘estimate’, ‘intend’, ‘may’, ‘will’, ‘expect’, and ‘project’ and similar expressions as they relate to the Group. Forward-looking statements involve certain risks and uncertainties because they relate to future events. Actual results may vary materially from those targeted, expected or projected due to several factors. Potential risks and uncertainties includes such factors as general economic conditions, foreign exchange fluctuations, interest rate changes, commodity price fluctuations and regulatory developments. The reader and/or listener is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward-looking statements.

3

Olam International Limited Investor Presentation May 2020

We are Suppliers We are Processors We are Farmers We are Innovators

We are a leading, global food and agri-business, sourcing raw materials and transforming them to deliver food, feed and fibre to 25,200 customers worldwide.

Field and farming experts growing 16 different crops in 13 countries Scale gives us global market insight, shared learnings and efficiencies Connecting customers to the source via our network of 5 M farmers On the ground, all year executing procurement, traceability, warehousing, logistics, paperless trading Transforming raw materials into bespoke ingredients across our 170 facilities Focus on safety, fairness, quality, efficiency and the environment 14 innovation centres

• ffering added value

solutions through the supply chain Expertise includes, product innovation and customisation, digital apps and co-manufacturing

Compan Company y over erview view

4

Olam International Limited Investor Presentation May 2020

1989 2001 2019

Nigeria

Products Countries Revenue Employees

1 10 45+ 1 20 60+ 40,800* 2 1,500 S$2 M S$33.0 B S$1.6 B

30 y 30 year ears s of

• f growth

wth

* Employees refer to full-time employees. Including seasonal and temporary workers, employees at 87,600 in 2019.

5

Olam International Limited Investor Presentation May 2020

5

Listed on the Singapore Exchange since 2005, we have a diversified supportive shareholder base with long-term investment horizon.

Temasek Holdings Mitsubishi Corporation Kewalram Chanrai Group Olam’s Management Other Institutional and Public

53.4% 17.4% 7.0% 6.3% 15.9%

Our Our sha shareho eholder lders s

Note: Shareholdings are based on 3,195,623,619 shares (excluding treasury shares) as of April 1, 2020. Olam’s management refers to the executive committee. Other Institutional and Public includes substantial shareholder Orbis Group at 6.9%.

6

Olam International Limited Investor Presentation May 2020

Edible Nuts and Spices

Edible Nuts Spices Almonds Onion Cashews Garlic Hazelnuts Chilli Peanuts Herbs Pistachios Pepper Walnuts Purees Sesame Tomatoes

Confectionery and Beverage Ingredients

Cocoa Coffee

Food Staples and Packaged Foods

Dairy Edible Oils Olam Palm Gabon Grains & Animal Feed Packaged Foods Rice Sugar & Sweeteners

Industrial Raw Materials, Infrastructure and Logistics

Cotton Rubber Wood Products Fertiliser Infrastructure & Logistics

Commodity Financial Services

Funds Management Quant strategies

Our por Our portf tfolio

• lio

Div Diver ersified sified acr across

• ss 5

5 se segmen gments ts

7

Olam International Limited Investor Presentation May 2020

13.4% 20.3% 53.4% 12.9%

32,992.7

(2018: 30,479.0)

40.4% 25.8% 25.4% 8.4%

39,751.8

(2018: 32,867.6)

16.7% 49.7% 20.0% 13.6%

32,992.7

(2018: 30,479.0)

2019 Sales Revenue By Region

(S$ MILLION)

2019 Sourcing Volume By Region

(‘000 METRIC TONNES)

• Americas
• Asia, Australia, Middle East
• Europe
• Africa

Diversified across markets

Our Our financials financials

Div Diver ersified sified acr across

• ss pr

products

• ducts and r

and regions gions

2019 Sales Revenue By Segment

(S$ MILLION) >80% of portfolio is food and food related

Edible Nuts and Spices Confectionery and Beverage Ingredients Food Staples and Packaged Foods Industrial Raw Materials, Infrastructure and Logistics

Diversified across markets

8

Olam International Limited Investor Presentation May 2020

Our customers

Diversified base with long-term relationships

Number of customers More than 25,200 customers worldwide, including several leading global brands Strong and reputable customer base

9

Olam International Limited Investor Presentation May 2020

Our capabilities and how we are differentiated

10

Olam International Limited Investor Presentation May 2020

Our aspiration and goals

11

Olam International Limited Investor Presentation May 2020

2019-2024 Strategic Plan

Re-imagining Olam: Offering tomorrow’s products and services

Four strategic pathways

12

Olam International Limited Investor Presentation May 2020

Four key trends informed our choices

13

Olam International Limited Investor Presentation May 2020

We will invest behind attractive/proven businesses, while we streamline our portfolio

14

Olam International Limited Investor Presentation May 2020

Business unit strategy (1/2)

15

Olam International Limited Investor Presentation May 2020

Business unit strategy (2/2)

16

Olam International Limited Investor Presentation May 2020

Cost and capital efficiency

17

Olam International Limited Investor Presentation May 2020

Offer differentiated products/services in existing and new channels

Risk Management Solutions Value-added services AtSource

Bespoke market-price risk management intelligence, tools and solutions permitting selective participation in risk and/or reward to producers, traders, and consumers Offering certified/verified raw materials, organic certification, customised grades and quality First of its kind comprehensive Sustainable Sourcing Solution in agri B2B market-place offering information on multiple sustainability indicators

18

Olam International Limited Investor Presentation May 2020

Offer differentiated products/services in existing and new channels

Product innovation Ingredients specialists

Becoming the innovation partner

• f choice for our customers by

leveraging scale and consumer insights Capturing higher value by taking

• ur processing capabilities further

and transforming products to ingredients

19

Olam International Limited Investor Presentation May 2020

Capitalising on growing customer segments and channels

Food service Co-manufacturing

Meeting increasing consumer demand for out of home consumption, with focus on health and wellness, and sustainable

• fferings

Meeting increasing customer demand for co-manufacturing their brands

E-commerce

Offering omni-channel access and reducing cost to serve customers

20

Olam International Limited Investor Presentation May 2020

New engines for growth

21

Olam International Limited Investor Presentation May 2020

Strategic priorities and roadmap

Key enablers

22

Olam International Limited Investor Presentation May 2020

Key enablers

23

Olam International Limited Investor Presentation May 2020

Key enablers

Our expertise and global presence mean we are strongly positioned to re-imagine global agriculture and food systems in order to address major environmental and social challenges. SDGs

Purpose Purpose Outcomes

Material Areas

Thriving Communities Prosperous Farmers and Food Systems Regeneration of the Living World Re-Imagining Global Agriculture and Food Systems Impact on UN SDGs

Economic Opportunity Safe and Decent work Reduced Waste Health and Nutrition Climate Action Water Healthy Soils Healthy Eco Systems Diversity and Inclusion Education and Skills

Enablers

24

Olam International Limited Investor Presentation May 2020

Key enablers

Olam Inside Olam Forward Olam Direct

AtSource E-Commerce Smart Factories Smart Farms E-Trade Finance Digital Origination OFIS Olam Traceability Digital Warehouse Digital Procurement

The digital transformation of our Company continues at an accelerated pace across 3 areas – Olam Direct, Olam Inside and Olam Forward.

25

Olam International Limited Investor Presentation May 2020

Key enablers

26

Olam International Limited Investor Presentation May 2020

2019 2019-2024 Str 2024 Strate tegic gic Plan p Plan prog

• gress

ess

Pathw thway ay 1 : 1 : Str Streamline, eamline, focus

• cus and str

and strengthe engthen n por portf tfolio

• lio

Investing further in prioritised businesses

In addition to the FY19 investments (US$935m): expansion of spices grinding business in Vietnam, plant efficiency increase in Almond Australia

• peration, OPG, etc. made in Q1 2020

US$1,025m

• f investments (organic & inorganic

in FY19 & Q1 FY20 vs US$3.5b planned over the FY19-24 period) 29% of the planned investment over the Plan period invested by Q1 2020

Divesting deprioritised businesses & related assets, and recycling capital

US$682m

• f Invested Capital released in

FY19 & Q1 FY20

(41% of US$1.6b targeted over the FY19-24 period) In addition to the FY19 divestments (US$573m): US$109m released from the sale of balance 50% stake in PT DUS, and dilution of stake in ARISE P&L through APMC sale

27

Olam International Limited Investor Presentation May 2020

2019-2024 Strategic Plan Progress

Pathway 2 : Improve margins through cost & capital productivity

a) Cost efficiency

~US$90m

• f cost reduction & productivity improvement

b) Capital productivity

US$1.0b less invested capital than Strategic Plan in FY19 US$1.2b less invested capital than Strategic Plan in FY20 99 days

Cycle Time

1.53x

Gearing

28

Olam International Limited Investor Presentation May 2020

2019-2024 Strategic Plan Progress

Pathway 3a : Value-added offerings

Innovation : Further pivot to Ingredients

• Capability building – Business

wise innovation function, processes, portfolio strengthening

• Multiple new products

developed and strong pipeline

• f initiatives in place
• Partner with customers –

Mondelez, Nestle, Costco, Aldi, McCormicks, General Mills

• Adding innovation talent and

experts

Value-added Services

• All certifications (Rainforest

Alliance, Utz) and customised grades

• Extensive organic range to

meet rising demands across portfolio : Coffee, Almond, Hazelnut, Sesame, Tahini products, Dried Onion and Garlic, Chili, Turmeric, Cumin, Cinnamon, Black pepper

Risk Management Solutions

15%

Embed % at

89

up from 11% Y-o-Y new clients acquired*

Expanded AtSource+

16

Products 30 Origins

141

customers 200k+ farmers

Expanded AtSource+ The most complete & comprehensive sustainable sourcing platform in the B2B marketplace

29

Olam International Limited Investor Presentation May 2020

2019-2024 Strategic Plan Progress

Pathway 3b: Expand into new customer segments and channels

E-Commerce

963

New customers

US$67m

• f Revenue

11

Large private label customers

Private Label / Contract Manufacturing and Food Service Solutions

13

~US$75m

Incremental revenues in Q1 FY20 Large private label customers in pipeline

30

Olam International Limited Investor Presentation May 2020

2019-2024 Strategic Plan Progress

Pathway 4: Exploring 5 new engines for growth (Engine 2)

B2C Purpose brands Controlled Environment Agriculture Farmer Services Platform Environmental Footprinting & Solutions app Land tokenisation and carbon trading

Criteria for Engine 2 initiatives:

• Aligned to our purpose – addressing agri & food-industry disruptions
• Material opportunity – large enough opportunities that can become new engines of growth for Olam in the 6 year

planning cycle time-frame

• Counterpoint to the core business – higher margin, lower volatility / cyclicality, lower capital intensity
• Leveraging Olam’s core strengths & unique assets (including digital & sustainability advantage)
• Smart investing rather than asset-heavy capital led models

31

Olam International Limited Investor Presentation May 2020

Beyond Strategic Plan:

Re-organising Olam’s business to unlock long term value

1) Stewardship

• Hold OFI & OGA
• Parenting advantage (ensure continuity of

the “Olam Way”, execute cross-cutting initiatives across the Olam Group)

• Provide shared service to OFI & OGA to
• ptimise synergies

Olam International (OIL)

2) Accelerator

• Nurture gestating businesses to full potential

(Packaged Foods Business, Infrastructure & Logistics, Olam Palm Gabon)

• Incubate new engines for future growth
• Exit non-core / de-prioritised businesses &

assets, and redeploy capital for growth

• Differentiated global agri-

business with unique focus on high-growth emerging markets

• Comprises Grains & Animal

Feed, Edible Oils, Rice, Cotton, Commodity Financial Services

Olam Global Agri (OGA)

• Industry-leading businesses
• ffering sustainable, natural,

value-added food ingredients which are “on-trend”

• Comprises Cocoa, Coffee,

Edible Nuts, Spices & Dairy

Olam Food Ingredients (OFI)

32

Olam Food Ingredients

A global leader offering sustainable, natural, value-added food ingredients, so consumers can enjoy the healthy and indulgent products they love

A complementary & differentiated “on-trend” portfolio anticipating & meeting consumer food choices Imaginative experts tailoring solutions in partnership with

• ur customers

Global value chain presence from our

• wn farms / farm-

gate origination for transparent & sustainable sourcing, to adaptive manufacturing solutions

VISION

33

Olam International Limited Investor Presentation May 2020

Shared customers

New approach to cross-business key account management for food manufacturers, retailers, food service, and e-commerce customers

Centralised Product Development & Innovation

Building integrated centres of excellence for product development, applications and solutions

Private label / Co-manufacturing

Manufacturing downstream / packaged food for retailers, brand owners and food service

Farmers / farm-gate presence

Upstream operations in selective crops. Boots-on-the-ground at farm gate all year round

Unified digital channels

1st mile: Digitising multiple supply chains

• n common Apps

Last mile: Combining cross-business e-commerce initiatives, deliver fulfilment & capability and digital marketing

Sustainability

Clear sector leadership in sustainability exemplified by AtSource, the most comprehensive B2B sustainable sourcing platform

Olam Food Ingredients

Transforming ourselves to strengthen cross-cutting capabilities

34

Olam International Limited Investor Presentation May 2020

34

Olam Global Agri

Unrivalled leader in food, feed and fibre in high-growth emerging markets with proven expertise, processing capabilities and a global

• rigination footprint

Deep understanding of market needs via

• n-the-ground

presence in Asia and Africa over 30 years Proprietary

• perating

capabilities in global origination, processing, trading, logistics, distribution, and risk management Fundamental strengths and strategic manufacturing assets in key destination markets

VISION

35

Olam International Limited Investor Presentation May 2020

Local distribution

Significant penetration in terms of width & depth of distribution, offering cross- selling opportunities

Freight and logistics

Sharing bulk freight management expertise across all businesses. Proficiency in

• perating critical emerging ports

Trading & Risk Management

Proprietary knowledge and insight through shared research and best practice, and real-time risk management

Consumers

Providing fortified, nutritious & affordable food, and knowing how to cater to the changing preferences of convenience food and shift in dietary habits to more protein consumption

Global origination

A network of procurement offices strategically located in key growing

• rigins

Licence to operate

Co-operating with governments to meet their national food security agenda. Managing all stakeholders, including governments, communities, suppliers holistically.

Olam Global Agri

Transforming ourselves to strengthen cross-cutting capabilities

36

Olam International

Parent company of OFI and OGA with a key role to unlock the full value of the Olam Group by providing active stewardship to the new operating groups and accelerating growth

Ensure continuity of the “Olam Way”, implement cross-cutting initiatives and drive key enablers Provide shared services to OFI and OGA to

• ptimise

synergies Nurture gestating businesses to full potential, incubate new engines for future growth & release capital from divestments

VISION

37

Olam International Limited Investor Presentation May 2020

38

Olam International Limited Investor Presentation May 2020

2019 results

At a glance

Volume

39.8 M MT

+20.9%

EBITDA

S$1,552 M

+25.6%

PATMI

S$564 M

+62.2%

Operational PATMI

S$466 M

+28.1%

Free Cash Flow

S$498 M

+43.7%

Gearing

from 1.32x to

1.38x

39

Olam International Limited Investor Presentation May 2020

2019 results

highlights

High Higher er Div ividen idend Board of Directors recommends final dividend of 4.5 cents per share Including interim dividend, total dividend

• f 8.0 cents per share for 2019 (2018: 7.5

cents) Mainta aintained ined s stron trong ba g balanc lance e shee sheet Reduced cycle time despite higher net debt Gearing at 1.38x (2018: 1.32x) well under target of 2.0x Building uilding on

• n Str

Strate ategic gic Plan: Plan: Re Re-org

• rgan

anis isation ation of

• f Olam

Olam to to un unlock lock value value

Simplify portfolio: Create 2 distinct operating groups OFI and OGA; OIL to provide stewardship and act as an accelerator for building future growth engines Sharpen focus: Enhance performance and attract talent Attract additional investors Accelerate profitable growth: Raise new growth capital via potential carve-out / IPO

Suc Succe cess ssfu full lly y ex exec ecute uted d first first year of year of 20 2019 19-20 2024 24 Strateg Strategic Pl ic Plan an

Strong top line and bottom line growth in Sales Volume, EBITDA & Operational PATMI Positive FCFF and FCFE Improved EBITDA/IC at 10.2% (2018: 8.1%) ROE at 9.1% (2018: 5.3%)

40

Olam International Limited Investor Presentation May 2020

^ Excluding exceptional items

2019 results

P&L analysis

S$ million 2019 2018 % Change Volume ('000 MT) 39,751.8 32,867.6 20.9 Revenue 32,992.7 30,479.0 8.2 Net gain in fair value of biological assets^ 19.0 61.3 (69.0) EBITDA^ 1,551.7 1,235.8 25.6 Depreciation & amortisation^ (495.5) (392.8) 26.1 Net Finance costs (538.5) (468.8) 14.9 Taxation^ (58.5) (52.3) 11.9 Exceptional items 65.9 1.2 n.m. PAT 525.1 323.1 62.5 PATMI 564.1 347.8 62.2 Operational PATMI 498.2 346.6 43.7

41

Volume by s

• lume by segment,

gment, '000 '000 MT MT

7,183 2018 Confectionery & Beverage Ingredients Edible Nuts & Spices Food Staples & Packaged Foods Industrial Raw Materials, Infrastructure & Logistics 2019 32,868

• 23
• 62
• 214

39,752 +20.9%

2019 results

Volume growth led by Food Staples & Packaged Foods (Grains)

42

EBITD EBITDA by by se segme gment nt, , S$ S$ millio million

3 118 166 32 Edible Nuts & Spices Confectionery & Beverage Ingredients 2018 Food Staples & Packaged Foods Industrial Raw Materials, Infrastructure & Logistics Commodity Financial Services 1,236 2019

• 3

1,552 +25.6%

2019 results

EBITDA growth led by strong growth in Food Staples & Packaged Foods and Confectionery & Beverage Ingredients

Note: The adoption of SFRS(I) 16 resulted in an increase in EBITDA by S$99.3 million.

43

PATMI and Oper TMI and Operational P tional PATMI, S TMI, S$ million $ million

348 564 316 65 14 2018 EBITDA^ Non-controlling Interests Exceptional Items Depreciation & Amortisation Net Finance Costs 2019 Taxation^

• 6
• 103
• 70

+62.2%

2019 results

Excluding impact of SFRS(I) 16, PATMI would have increased by 69.7% to S$590 million; Operational PATMI would be up 51.2% at S$524 million

^ Excludes exceptional items

347 +43.7%

Operational PATMI (S$ M)

498

Note: The adoption of SFRS(I) 16 resulted in an increase in EBITDA by S$99.3 million. It also increased depreciation and net finance costs by S$95.1 million and S$30.2 million respectively in 2019, resulting in net negative impact of S$26.0 million on PATMI and Operational PATMI.

44

In Invest ested ed ca capital, pital, S$ Million S$ Million

• Working Capital was lower on reduced inventory value in

tomatoes and other spices

• Fixed Capital increased on adoption of SFRS(I) 16 and

acquisition of HNI, which were partly offset by the sale of permanent water rights in Australia and some of the real estate assets of the Spices business in California 2,048 2,222 1,996 1,944 2,024 1,415 1,421 1,608 1,666 1,321 Dec-18 Dec-17 Dec-15 restated Dec-16 Dec-19 3,463 3,643 3,604 3,610 3,345

• 7.3%

Fixed Capital Working Capital

EBIT EBITDA, S$ M A, S$ Million illion

• Marginal rise in EBITDA – Edible Nuts did well with improved

performance in cashew, while almonds, peanut shelling and hazelnut businesses performed less favourably

• Spices had a lower EBITDA due to reduced contribution from
• nion and garlic; Decision taken to close industrial tomato and

canning operations and review options to divest the assets in H2 2020 394 332 438 340 342 2016 2015

restated 2018 2017 2019 +0.7%

Note: EBITDA includes positive impact from the adoption of SFRS(I) 16.

EBITDA/ Avg IC

11.5% 9.3% 12.1% 9.4% 9.8%

2019 results

Edible Nuts and Spices

45

EBITD EBITDA, S$ M , S$ Million illion

• Strong growth in EBITDA – Cocoa had a stellar performance in supply

chain and processing with improved margins

• Coffee EBITDA improved as coffee supply chain did better than the prior

period and soluble coffee continued its steady performance trajectory. Plantations, which were lower on account of low prices, took a one-off impairment in 2019

In Invest ested ed ca capital, pital, S$ Million S$ Million

• Increase in Working Capital due to higher Cocoa and Coffee

inventory

• Fixed Capital higher on acquisition of BT Cocoa and impact

from SFRS(I) 16 adoption 284 407 328 444 562 2019 2015 restated 2018 2016 2017 +26.6% 1,351 1,541 1,528 1,501 1,532 4,330 4,569 3,819 3,434 3,560 Dec-15 restated 4,935 Dec-16 Dec-19 Dec-17 Dec-18 5,092 5,681 6,110 5,347 +3.2%

Working Capital Fixed Capital

Note: EBITDA includes positive impact from the adoption of SFRS(I) 16.

EBITDA/ Avg IC

8.6% 6.4% 6.9% 11.2% 5.7%

2019 results

Confectionery and Beverage Ingredients

46

EBIT EBITDA, S$ M A, S$ Million illion

• Strong EBITDA growth driven by Grains & Animal Feed, with

improved performance from Packaged Foods, Dairy and Edible Oil supply chain trading businesses

• Edible Oils refining was impacted by tropical cyclone in

Mozambique; Dairy farming in Uruguay continued to experience difficult operating conditions – Both operations took one-off impairment and restructuring charges in 2019

212 330 360 289 455 2015 restated 2017 2016 2019 2018 +57.4%

In Invest ested ed ca capital, pital, S$ Million S$ Million

• Working Capital lower on closure of Sugar trading desk and

availability of supplier credit for bulk commodities

• Fixed Capital increased on acquisition of Dangote Flour Mills,

continued investments by OPG and Rusmolco, and impact from SFRS(I) 16 adoption 2,316 3,024 3,547 3,460 4,190 915 1,498 1,131 1,118 1,037 Dec-15 restated Dec-16 Dec-19 Dec-17 3,231 Dec-18 4,522 4,678 4,578 5,227 +14.2%

Working Capital Fixed Capital Note: EBITDA includes positive impact from the adoption of SFRS(I) 16.

EBITDA/ Avg IC

6.2% 6.7% 8.5% 9.3% 7.8%

2019 results

Food Staples and Packaged Foods

47

EBIT EBITDA, S$ M A, S$ Million illion

• EBITDA declined marginally on reduced contribution from

Cotton due to sharp fall in cotton prices and adverse trading conditions

• This was offset by improved performance in the Infrastructure

& Logistics and Wood Products businesses 185 135 197 176 174 2018 2015 restated 2016 2017 2019

• 1.5%

In Invest ested ed ca capital, pital, S$ Million S$ Million

• Working Capital was higher due to closing inventory for

Cotton

• Fixed Capital increased due to investment in Cotontchad,

continued investments in Olam Rubber Gabon and impact from adoption of SFRS(I) 16 1,006 1,008 1,055 1,061 1,132 912 1,213 1,050 511 723 Dec-19 Dec-18 Dec-15 restated Dec-16 Dec-17 1,855 1,918 2,221 2,105 1,572 +18.0%

Working Capital Fixed Capital

EBITDA/ Avg IC

9.6% 9.8% 6.5% 10.1% 9.1%

2019 results

Industrial Raw Materials, Infrastructure and Logistics

48

S$ million 31-Dec 2019 31-Dec-2018 Change vs Dec 18 Uses of Capital Fixed Capital 8,616.0 8,349.3 266.7 Right-of-use assets 577.6

• 577.6

Working Capital 6,627.8 6,376.4 251.4 Cash 3,179.6 2,480.4 699.2 Others 135.1 526.2 (391.1) Total 19,136.1 17,732.3 1,403.8 Sources of Capital Equity & Reserves 6,836.1 6,652.9 183.2 Non-controlling interests 108.1 138.7 (30.6) Short term debt 6,675.5 4,766.4 1,909.1 Long term debt 5,403.4 6,407.7 (1,004.3) Short term lease liabilities 82.0 10.7 71.3 Long term lease liabilities 435.1 83.4 351.7 Fair value reserve (404.1) (327.5) (76.6) Total 19,136.1 17,732.3 1,403.8

2019 results

Balance sheet

49

2019 results

Cash flow statement

S$ million 2019 2018 YoY Operating Cash flow (before Interest & Tax) 1,454.4 1,154.7 299.7 Changes in Working Capital (95.6) 930.6 (1,026.2) Net Operating Cash Flow 1,358.8 2,085.3 (726.5) Net interest paid (554.7) (464.1) (90.6) Tax paid (106.8) (137.9) 31.1 Cash from divestments 502.9 435.8 67.1 Free cash flow before capex/ investments 1,200.2 1,919.1 (718.9) Capex/ Investments (1,065.6) (852.8) (212.8) Free cash flow to equity (FCFE) 134.6 1,066.3 (931.7)

50

Q1 2020 results

At a glance

Volume

8.4 M MT

• 1.2%

EBITDA

S$391 M

• 7.0%

PATMI

S$179.1 M

+6.1%

Operational PATMI

S$466 M

+28.1%

Cash and cash equivalents

S$136 M

• 24.9%

S$4.5 B

+S$2.0 B

Gearing

from 1.35x to

1.53x

51

4,460 20,475 6,270 2,231 7,514 Available Liquidity Cash and Short- term Fixed Deposits RMI* Secured Receivables Unutilised Bank Lines

Q1 2020 results

Ample liquidity

Total a

• tal availa

vailable liquidity ble liquidity, S$ Million as , S$ Million as a at M t Mar arch h 31, 2020 31, 2020

* RMI: inventories that are liquid, hedged and/or sold forward

Post Q1 2020, we secured multi-tranche financing facilities aggregating US$176.0 million from IFC and JICA. The facility consists of two tranches – a 5-year term loan of US$120.0 million and a 7-year term loan of US$56.0 million.

52

Covid-19

Potential impacts

• Demand side: Potential demand destruction and consequent volume volatility;

commodity price volatility and consequent pressure on margins; increased risk of counterparty defaults

• Supply side: Potential forced factory closures as a result of containment measures;

disruption to raw material supplies; restrictions in movement of labour and labour availability; cross border movement restrictions for goods; ports lockdowns

• Financial markets: Liquidity crunch, higher spreads and liquidity premiums with

consequent increase in cost of borrowings; currency devaluation against USD with consequent margin reduction; recent corporate defaults / liquidations, particularly in Asia, leading to increased caution in the banking sector

53

• Food service demand declining: Steep decline in dine-in & out of home consumption; demand

for delivery spiked but not enough to make up for decline in dine-in

• Grocery retail demand growing: Packaged foods/grocery retail growing strongly; online groceries

growing even faster; essentials and staples (e.g. rice, instant coffee, frozen meats, canned soups) growing faster; consumers are shifting towards well-recognised brands

• Agri-supply prioritised: Countries are prioritising agri supply but labour participation/availability is

impacted/limited; Increased restriction in international movement of food staples as producing countries prioritise domestic stockpiles

• For Olam, impact on demand varied across products:
• We experienced lower demand in some non-food categories like Cotton and in food

products with significant out-of-home consumption like Edible Oils and Coffee.

• We also saw lower demand in Almonds & Dairy due to the lockdown in China in Q1 2020.
• Demand for most food staples was generally resilient and spiked in some cases due to

the pantry restocking effect both at the household and retail level.

Covid-19

Demand side impacts

54

Covid-19: Our response

5 priorities

• Primary focus has been to ensure health and safety of our employees & food safety of our customers
• Business Continuity Plans activated in all key countries & sites in Africa, Americas and Asia; includes

guidelines on how to approach lifting of lockdowns and shelter in place policies for all offices, manufacturing facilities and plantations globally

• To mitigate impact on demand, supply and financial markets, we are already executing several

“handbrake” levers across the company:

• Reduce SG&A expenses
• Reduce working capital by improving cycle times & reducing inventories
• Reduce capital expenditure
• A tiered mitigation plan in place to pull additional “handbrake” levers in the event of a second wave. We

have also drawn up a plan for more significant mitigating measures (“break glass” levers) should situation further deteriorate

• Concurrently, we are supporting our stakeholders, particularly farmers and communities in

vulnerable countries, and preparing for evolving our business model in a post COVID-19 world in consultation with supply chain partners

1 2 3 4 5

55

Supporting farmers, communities & ecosystems

Olam has already committed to providing humanitarian aid of US$5 million

Supporting public-awareness campaigns and installing additional sanitation facilities: Provided Medical relief efforts worth over US$600,000 to national health authorities and hospitals; Distribution of food supplies to rural communities and frontline workers

• US$100,000 of

medical equipment and essential food supplies donated to state governments in Nigeria

• Construction of quarantine

hospital by CIB in DRC – part

• f a 300 million CFA

(US$495k) commitment to support COVID relief efforts.

• 35 handwashing pumps

manufactured by SECO in Côte d’Ivoire, as part of a donation of medical and sanitation supplies worth US$18,000, to local authorities in the Tchologo region.

• Distribution of 2 months’

supply of food essentials and cleaning materials to Orphanage and Children’s Hospital in Senegal.

• Olam Grains

teamed up with prominent bakeries in Ghana to provide US$8,500 worth

• f freshly baked

bread to frontline health workers and hospital patients

• Health updates and advice

issued via our digital platforms OFIS and Olam- Direct to reach ~20,000 cocoa & coffee farmers in Indonesia; AgriCentral for 1.2 million farming families in India; Digital Supplier Engagement apps for 1,400 cooperatives and licensed buying agents in Côte d’Ivoire.

56

• With 80-85% of our revenues in the food category where demand is less sensitive to

recession or economic downcycles, we believe we will be able to better navigate the demand led uncertainties around COVID-19.

• However, the impact of COVID-19 on Q2 2020 and the rest of the year remains very

uncertain with a wide range of outcomes that could impact demand and supply conditions across different geographies, businesses and financial markets.

• We have been proactive in controlling costs and conserving cash to mitigate against

potential adverse impact from the COVID-19 crisis. We stand ready to pull additional levers if situation worsens.

• We will continue to monitor and assess this impact on a more dynamic basis rather than
• n a fixed planning cycle basis and provide an assessment along with unaudited financial

statements for the first-half ending June 30, 2020 or earlier, if material developments arise.

Outlook

57

Olam International Limited Investor Presentation May 2020

Governance

Board of directors

Norio Saigusa

58

Olam International Limited Investor Presentation May 2020

Governance

Risk management

As a general principle, Olam has appropriate policies for risks that are insurable across products and geographies

59

Olam International Limited Investor Presentation May 2020

Recognitions

• Singapore Corporate Awards 2019, Best Annual Report (Silver)
• The Asset Triple A Country Awards 2018: ‘Best Loan in Singapore’ for Asia’s first sustainability-linked club loan
• ASEAN Business Advisory Council (ASEAN-BAC) AGROW Awards: Champion Inclusive Agri-business
• Top 30 ASEAN public listed companies in corporate governance practices 2018
• Africa CEO Forum Awards 2018: International Company of the Year
• Singapore Sustainability Reporting Awards (SSRA) 2018 by Singapore Institute of Directors, SGX and Global

Compact: Best Sustainability Report for Established Reporters

• Winner of Sustainability Award, Runner-up of ‘Most Transparent Company’ Award, Commerce, SIAS 19th

Investors’ Choice Awards 2018

• Sustainable Business Award, Large Organisation category, Singapore Apex Corporate Sustainability Awards,

2017

• Olam ranked No.23 on Fortune’s 2nd annual ‘Change the World’ list 2016
• Asia’s Best Sustainability Report (Standalone) 2016, Asia Sustainability Reporting Awards (ASRA)
• IR Magazine Awards Southeast Asia for Best in Sector (Consumer Staples) and Most Progress in IR in 2014

Olam Investor Presentation

• lamgroup.com/investors.html

ir@olamnet.com