Olam Group Limited · SGX:VC2
Olam — Shareholder Meeting (March 2023)
24 slides from Olam's shareholder meeting presentation, Mar 29, 2023
Slide 1: Proposed Olam Agri IPO and Demerger
Olam Group Limited Re-organisation of Olam: Proposed Important instruction: Place an image in exactly the same Olam Agri IPO and Subtitle position as this grey box. and Date Select the image. Demerger [Mac] in the menu, select ‘Arrange’ and then ‘Send to Back’. [PC] right click and then ‘send to Bac
Slide 2: Notice
Notice This presentation should be read in conjunction with Olam Group Limited’s Circular to Shareholders in relation to the Proposed Olam Agri Disposal, the Proposed Olam Agri Dilution and the Proposed Olam Agri Capital Reduction, lodged on SGXNET on March 6, 2023. 2 Extraordinary General Meeting |
Slide 3: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements The information contained in this presentation is for information purposes only and does not constitute or form part of any offer or invitation to sell or issue or subscribe for, or any solicitation of any offer or invitation to purchase, acquire or subs
Slide 4: Cautionary note on forward-looking statements (cont'd)
Cautionary note on forward-looking statements (cont’d) These forward-looking statements speak only as at the date of this Presentation. Such forward-looking statements and financial information are based on numerous assumptions regarding the Company’s present and future business strategies and the e
Slide 5: Agenda
Agenda 1 2 3 4 5 Re-organisation Proposed Overview Strategic Next steps of Olam transactions of the rationale overview Olam Agri business 5 Extraordinary General Meeting | March 29, 2023
Slide 6: Re-organisation of Olam
1 Re-organisation of Olam 6 Extraordinary General Meeting | March 29, 2023
Slide 7: Our Re-organisation
Our Re-organisation We created 3 distinct operating groups, all purpose-led & future ready Remaining Olam ofi Olam Agri Value-added ingredients & Differentiated global food, feed, and fibre agribusiness, focused on high Group solutions serving high growth food growth end consumption markets All othe
Slide 8: Re-organisation of Olam: Next steps
Re-organisation of Olam: Next steps Remaining Olam Group Plan primary listing on the premium Plan dual listing of Olam Agri as early as H1 2023 with On completion of Olam Agri, ofi IPOs, the Group segment of LSE and a concurrent primary listing on mainboard of SGX and a possible will remain listed o
Slide 9: Proposed transactions overview
2 Proposed transactions overview 9 Extraordinary General Meeting | March 29, 2023
Slide 10: Proposed transactions overview
Proposed transactions overview Proposed Transactions Proposed Olam Agri Disposal Proposed Olam Agri Dilution Proposed Olam Agri Capital Reduction The proposed sale by the Company of a certain The proposed dilution of the Company’s The proposed capital reduction exercise to be number of Olam Agri Hol
Slide 11: Changes in Group structure
Changes in Group structure 1 Current Structure Existing Shareholders Olam Group Limited 100.0% Olam Holdings Pte. Ltd. 100.0% 100.0% 100.0% 100.0% 100.0% Olam Agri Pte. Ltd. ofi Group Limited 16.43% SALIC International Olam Global HoldCo Pte. Ltd. Olam Ventures Pte. Ltd. MindSprint Pte. Ltd.(1) Olam
Slide 12: Overview of the Olam Agri business
3 Overview of the Olam Agri business 12 Extraordinary General Meeting | March 29, 2023
Slide 13: Olam Agri at a Glance
Olam Agri at a Glance We are a global agri business, achieving high growth & returns Our size and 26.9Bn 38.3MM 30+ 60+ 9,500+ scale Revenue (US$) Volume (MT) Countries of Manufacturing & Employees(2) Presence Processing Facilities(1) Revenue CAGR (20-22) 28.9% Our Distinctive Performance 621.9MM 30
Slide 14: Long-Term Secular Trends
Long-Term Secular Trends We are supported by strong sector fundamentals. Growing Demand for Food Growing Resource Scarcity Driven by population growth, younger demographics, per capita Declining arable land, declining soil fertility, declining bio-diversity income growth and rising urbanisation Chan
Slide 15: Olam Agri Portfolio
Olam Agri Portfolio A Food & Feed ’22A Volume Contribution ’22A EBIT Contribution 1 Food & Feed: Origination & Merchandising Top 2 shipper of soybeans from Brazil by volume (2021)(1) Operations of origination, sourcing, merchandising and Leading rice merchant from key Asian export markets (2021)(2)
Slide 16: Core Competencies
Core Competencies Olam Agri’s Operating Model Processing & Trading & Farming Manufacturing Merchandising Risk Sourcing & Transport & Management Origination Logistics & Data Analytics Farming expertise through investments in Strategic & value-added Global player, exporting broad acre row crop process
Slide 17: Key Investment Highlights
Key Investment Highlights 1 High Growth & Returns 30.9% EBIT CAGR* 33.4% EBIT/MT CAGR* 15% Average* EBIT/IC(1) 44% Average* ROE(2) 2 Differentiated Business Model Select fixed asset Leading position and Independent and Fixed asset light investments focused on Olam Agri’s Operating growing market sha
Slide 18: Growth Framework
Growth Framework A Repeatable growth formula 1. Expanding into New Product Adjacencies Expanding into New Value Chain Adjacencies 2. Products that share customers, channels, costs and capabilities with our existing businesses 5. Particularly focused on the midstream part of the value chain (value ad
Slide 19: Capex Pipeline to Support Growth Ambition
Capex Pipeline to Support Growth Ambition Origination & 0-5% Processing & 55-70% We have ongoing and planned Merchandising (US$0-40MM)(2) Value-Added (US$440-560MM)(2) capital expenditure in the range of US$750-850MM for 2023 and • Investments to build our fleet through long term • Investments to ex
Slide 20: Strategic rationale
4 Strategic rationale 20 Olam Group Limited Results for the Year ended December 31, 2022 | February 27, 2023
Slide 21: Benefits and rationale
Benefits and rationale Unique business focus and value Greater visibility and Greater focus on core business proposition understanding of Olam Agri • Allow OAHPL and the rest of the • By being separately listed, each • The Proposed Olam Agri Demerger Olam Group to focus on their corporation will be
Slide 22: Next steps
5 Next steps 22 Olam Group Limited Results for the Year ended December 31, 2022 | February 27, 2023
Slide 23: Next steps
Next steps 1 2 3 4 5 EGM for approval of the Last date of “cum” Date and time of Distribution Record Date Distribution Effective Date Proposed OA Disposal, the trading of the Shares on commencement of “ex” Proposed OA Dilution and the SGX-ST trading of the Shares on The record date to be The date on
Slide 24: Olam Group Limited
Olam Group Limited olamgroup.com/investors.html ir@olamnet.com