Olam Group Limited · SGX:VC2
Olam — FY2024 Earnings Presentation
50 slides from Olam's earnings presentation, Feb 28, 2025
Slide 1: 2024 Results Briefing
2024 Results Briefing February 28, 2025
Slide 2: Notice
Notice This presentation should be read in conjunction with Olam Group Limited’s Financial Statements and Management Discussion and Analysis for the Six Months (“H2 2024”) and Full Year ended December 31, 2024 (“2024”) lodged on SGXNET on February 28, 2025. Olam Group Limited Results for the Year en
Slide 3: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation and announcement entitled “2024 Results Briefing” may contain statements regarding the business of Olam Group Limited and its subsidiaries (“the Group”) that are of a forward-looking nature and are therefore based on management’s assump
Slide 4: Presenters
Presenters Sunny Verghese N. Muthukumar A. Shekhar Co-Founder and Group CEO Group CFO CEO Olam Group Limited Olam Group Limited ofi Olam Olam Group Group Limited Limited Results Results for the for the YearYear ended ended December December 31, 2024 31, 2024 | February | February 28, 2025 28, 2025
Slide 5: Agenda
Agenda 1 2 3 4 5 Group 2024 Segmental Re-organisation Business prospects Key takeaways financial performance by update and outlook highlights operating group Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 6: Group 2024 financial highlights
1 Group 2024 financial highlights Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 7: Group 2024 results: At a glance
Group 2024 results: At a glance 49.6 M MT S$56.2 B Operational S$216.3 M Volume & PATMI¹ Revenue +12.5% +16.3% -52.8% S$1.9 B From 9.1% to Free Cash -S$5.9 B EBIT¹ & EBIT¹/IC² Flow to +9.2% 8.4% Equity -S$5.0 B S$86.4 M From 1.73x to PATMI Gearing -69.0% 2.79x Note: All results are compared against
Slide 8: Group 2024 results: Resilient EBIT growth of 9.2% at S$1.9 billion
Group 2024 results: Resilient EBIT growth of 9.2% at S$1.9 billion, supported by growth in ofi, Olam Agri S$ million 2024 2023 % Change Volume ('000 MT) 49,596.6 44,097.4 12.5 EBITDA^ 2,691.4 2,492.8 8.0 EBIT^ 1,935.8 1,771.9 9.2 Adjusted EBIT^^ 1,989.0 1,825.5 9.0 PAT 128.3 351.0 (63.4) PATMI 86.4
Slide 9: Consolidated results by operating group
Consolidated results by operating group 2024 at a glance ofi Olam Agri Remaining Olam Group Invested Capital Volume ('000 MT) Revenue (S$ million) EBIT (S$ million) (S$ million) 2.3% 2.0% -8.2% 6.8% 9.3% 38.9% 25.3% 55.3% 49,596.6 56,157.1 1,935.8 26,553.1 +12.5% +16.3% +9.2% +34.4% 90.9% 59.1% 52.9
Slide 10: Sales volume up 12.5%, 5.5 million MT higher at 49.6 million MT
Sales volume up 12.5%, 5.5 million MT higher at 49.6 million MT Volume growth by operating group ('000 MT) +12.5% 5,542 49,597 -112 44,097 70 2023 ofi Olam Agri Remaining 2024 Olam Group Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025 10
Slide 11: Improved core operating profits with EBIT growing 9.2%
Improved core operating profits with EBIT²growing 9.2% Adjusted EBIT up 9.0% EBIT²by operating group (S$ million) +9.2% 56 241 1,936 -134 1,772 2023 ofi Olam Agri Remaining 2024 Olam Group Adjusted EBIT² 1,826 +163 1,989 (S$ M) ² EBIT and Adjusted EBIT exclude exceptional items. Olam Group Limited R
Slide 12: Operational PATMI at S$216.3 million
Operational PATMI at S$216.3 million PATMI declined 69.0% to S$86.4 million as EBIT growth was offset by significantly higher interest costs PATMI (S$ million) -69.0% 164 279 30 86 49 10 -446 2023 EBIT^ Net Finance Taxation^ Exceptional Non-controlling 2024 Costs^ Items Interests Operational 458 -24
Slide 13: Higher working capital deployment led to increased invested capital and gearing
Higher working capital deployment led to increased invested capital³ and gearing Invested Capital4 (IC, S$ million) Gearing (times) Net gearing +34.4% Adjusted net gearing 26,553 2.79 Working Capital 19,750 Fixed Capital 16,354 1.73 9,749 0.65 0.68 10,001 10,199 Dec-23 Dec-24 Dec-23 Dec-24 • Growth
Slide 14: Free cash flow
Free cash flow Increase in working capital requirements and interest payments further impacted FCFE Free Cash Flow to Equity (FCFE) (S$ million) -5,022 273 -915 9 -4,848 -39 -417 -5,937 2023 Operating Changes in Tax Paid Capex / Net Interest 2024 Cash Flow Working Investments Paid (before Capital In
Slide 15: Sufficient liquidity with diversified pools of capital
Sufficient liquidity with diversified pools of capital Total borrowings and available liquidity (S$ million) as at December 31, 2024 6,871 25,138 Short-Term Long-Term 23,095 +2,043 2,789 9,975 12,148 13,120 3,330 Cash and RMI Secured Unutilised Available Total Short-term Receivables Bank Lines Liqui
Slide 16: Segmental performance by operating group
2 Segmental performance by operating group Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 17: ofi
afi NY — =) NY 0) MN wt N (e) N of
Slide 18: ofi 2024 results: Market backdrop
ofi 2024 results: Market backdrop Cocoa Coffee 6,000 400 14,000 Robusta - EU (USD/MT) London (GBP/MT) 350 12,000 5,000 Arabica - US (c/lb) New York (USD/MT) 300 10,000 4,000 250 8,000 3,000 200 6,000 150 2,000 4,000 100 2,000 1,000 50 0 0 0 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jan-23 Jul-23 Jan-24 Jul
Slide 19: ofi 2024 results
ofi 2024 results S$ Million S$ Million EBIT Invested Capital +11.5% +29.1% +47.7% 1,071 Global Sourcing +18.0% 17,361 Ingredients & Solutions 821 829 29% 36% 747 11,546 11,754 692 10,762 36% 50% 45% 8,943 39% 36% 45% 43% 71% 57% 64% 64% 61% 64% 55% 50% 55% 57% 43% 2020 2021 2022 2023 2024 2020 2021
Slide 20: ofi 2024 results: Invested capital mix
ofi 2024 results: Invested capital mix S$ Million Invested Capital S$M 2024 2023 Y-o-Y Fixed Capital 17,361 Fixed Capital 5,869 5,771 98 Other Working Capital Working Capital 11,492 5,983 5,509 RMI 11,754 RMI Total Invested Capital 17,361 11,754 5,606 RMI • Working capital represented the significan
Slide 21: ofi: Global Sourcing
ofi: Global Sourcing S$ Million S$ Million EBIT Invested Capital -3.9% +18.6% Working Capital +6.1% Fixed Capital +49.2% 339 295 313 6,295 4,476 4,219 4,550 2,694 2,467 1,782 1,752 1,745 2022 2023 2024 EBIT/MT (S$) 114 109 115 Dec-22 Dec-23 Dec-24 -3.8% EBIT/Avg IC 7.4% 6.8% 6.0% +5.9% Adjusted EBIT
Slide 22: ofi: Ingredients & Solutions
ofi: Ingredients & Solutions S$ Million Invested Capital EBIT Working Capital +36.4% Fixed Capital +25.1% +41.8% +46.8% 758 11,066 534 408 7,070 7,536 6,942 3,137 3,517 2022 2023 2024 3,933 4,019 4,124 EBIT/MT (S$) 321 431 587 +34.0% Dec-22 Dec-23 Dec-24 +38.9% Adjusted EBIT 444 573 796 EBIT/Avg IC
Slide 23: Transforming food, feed & fibre 2024 results
Transforming food, feed & fibre 2024 results
Slide 24: Olam Agri 2024 results
Olam Agri 2024 results Food & Feed - Origination & Merchandising Food & Feed - Processing & Value-added Fibre, Agri-industrials & Ag Services S$ Million S$ Million EBIT Invested Capital +14.5% +9.3% +23.1% +5.8% 6,720 968 1,024 858 5,124 5,458 29% 23% 21% 27% 25% 29% 37% 59% 45% 40% 49% 61% 28% 35%
Slide 25: Olam Agri: Food & Feed - Origination & Merchandising
Olam Agri: Food & Feed - Origination & Merchandising S$ Million S$ Million EBIT Invested Capital -6.2% +17.8% Working Capital -1.2% +42.8% 252 Fixed Capital 224 222 1,926 1,387 1,349 1,767 1,191 1,199 196 150 159 Dec-22 Dec-23 Dec-24 2022 Restated 2023 2024 Restated EBIT/MT (S$) 8 7 6 EBIT/IC (%) 23
Slide 26: Olam Agri: Food & Feed – Processing & Value-added
Olam Agri: Food & Feed – Processing & Value-added S$ Million S$ Million EBIT Invested Capital +4.3% +19.2% Working Capital +14.3% Fixed Capital +1.7% 2,510 601 2,307 2,195 591 423 1,062 1,166 972 1,245 1,223 1,344 2022 2023 2024 Dec-22 Dec-23 Dec-24 EBIT/MT (S$) 105 143 115 EBIT/IC (%) 19.3% 26.3% 2
Slide 27: Olam Agri: Fibre, Agri-industrials & Ag Services
Olam Agri: Fibre, Agri-industrials & Ag Services S$ Million S$ Million EBIT Invested Capital +26.4% +4.9% Working Capital +32.2% +19.4% Fixed Capital 201 2,285 183 1,914 152 1,430 1,728 1,441 1,009 421 473 557 2022 Restated 2023 2024 Dec-22 Dec-23 Dec-24 Restated EBIT/MT (S$) 78 71 81 EBIT/IC (%) 9.
Slide 28: Remaining Olam Group 2024 Results
Remaining Olam Group 2024 Results 28
Slide 29: Remaining Olam Group
Remaining Olam Group De-prioritised/Exiting Assets Continuing/Gestating Businesses Incubating Businesses EBIT Invested Capital S$ Million 5 S$ Million -2.6% 14 2,663 2,538 2,472 52 53 551 523 420 -11 -13 -62 -67 -96 -25 2,098 1,991 2,008 -50 -159 14 24 44 2022 2023 2024 Dec-22 Dec-23 Dec-24 • Remain
Slide 30: Re-organisation update
3 Re-organisation update Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 31: Re-organisation update (1/2)
Re-organisation update (1/2) Olam Group to sell 44.58% in Olam Agri to SALIC for approximately US$1.78 billion (“Tranche 1”), at an implied 100% equity valuation for Olam Agri of US$4.0 billion Olam Group to sell its remaining 19.99% stake in Olam Agri to SALIC (“Tranche 2”) at the end of three year
Slide 32: Re-organisation update (2/2)
Re-organisation update (2/2) Completion of the sale of Tranche 1 is conditional upon, inter alia, approval by OGL’s shareholders and other customary closing conditions, including regulatory approvals. 2 Subject to these conditions being fulfilled, the sale of Tranche 1 is expected to complete in Q4
Slide 33: Business outlook and prospects
4 Business outlook and prospects Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 34: Business outlook and prospects
Business outlook and prospects 1 2 3 4 ofi expects continued near-term Olam Agri continues to profitably The Remaining Olam Group The Group expects 2025 to volatility for some of its input raw grow its three segments - businesses will focus on experience continued materials like cocoa and coffee. Or
Slide 35: Key takeaways
5 Key takeaways Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 36: Key takeaways
Key takeaways 1 2 3 4 Resilient EBIT growth of 9.2% Board of Directors Sale of Olam Agri to SALIC a The Group will focus on at S$1.9 billion, supported by recommends second and key and important step seeking strategic options to growth in ofi and Olam Agri, final dividend of 3.0 cents forward in the
Slide 37: Appendix – Operating groups
Appendix – Operating groups Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 38: ofi in numbers
ofi in numbers Cocoa Coffee Nuts Spices Dairy 21.8 Billion revenue (S$) 1,499 Million EBITDA (S$) 1,071 Million EBIT (S$) 120+ manufacturing ~50 countries ~18,000 employees ~11,000 customers facilities Note: All financial figures are for 2024. 38 Olam Group Limited Results for Year ended December 31
Slide 39: ofi: Growth framework
ofi: Growth framework Organic Growth – Growing & extending the core Extract full value from current investments Increase share of value with targeted strategic customers Contribution to medium-term Volume growth: Focus on cost competitiveness Low to Mid-single digit Expand innovation & sustainabilit
Slide 40: Recap – our strategy & business model
Recap – our strategy & business model Confectionery Diversified and complementary portfolio Beverages redients & Solution Culinary ng s Integrated platforms I Spices Cocoa combining a strong al Sourcin Global Sourcing network Bakery lob Snacking G and delivering value- g added Ingredients & Categori
Slide 41: Olam Agri in numbers
Olam Agri in numbers 3 Segments 1 Food & Feed - Origination & Merchandising 30+ 10,000+ S$33.2b countries employees revenue 45m 60+ 16.8% 2 Food & Feed - Processing & Value-added tonnes in volume handled Manufacturing & processing facilities EBIT/IC 3 Fibre, Agri- Industrials & Ag Services Note: All
Slide 42: Olam Agri key takeaways
Olam Agri key takeaways 1 2 3 4 5 Strategically positioned Participation in key parts More asset intensive in Helmed by a highly Market leading as a food security play in of the global agri market the processing and value- experienced, capable and sustainability track the growing and and targeted su
Slide 43: Remaining Olam Group in numbers
Remaining Olam Group in numbers Olam Global Holdco Volume 1,160,100 MT Revenue S$1.2 B Invested S$2.5 B EBIT -S$158.7 M Capital Customers 2,300+ Employees 11,000+ Note: All numbers are as of December 31, 2024, except employees. 43 Olam Group Limited Results for the Year ended December 31, 2024 | Feb
Slide 44: Remaining Olam Group
Remaining Olam Group Remaining Olam Group Olam Global Holdco (OGH) Nupo Ventures Mindsprint • Houses de-prioritised assets: 60% stake in Olam • Acts as a foundry to build new sustainability and • Provides IT, digital and shared services to the Rubber Gabon; and Gabon Fertiliser Project digital platf
Slide 45: Appendix – Financials
Appendix – Financials Olam Group Limited Results for the Year ended December 31, 2024 | February 28, 2025
Slide 46: P&L statement
P&L statement S$ million 2024 2023 % Change H2 2024 H2 2023 % Change Volume (’000 MT) 49,596.6 44,097.4 12.5 25,324.6 22,779.7 11.2 Revenue 56,157.1 48,272.0 16.3 29,236.8 23,586.9 24.0 EBITDA^ 2,691.4 2,492.8 8.0 1,433.3 1,316.5 8.9 EBIT^ 1,935.8 1,771.9 9.2 1,047.8 952.3 10.0 Adjusted EBIT^^ 1,989
Slide 47: Exceptional items
Exceptional items S$ million 2024 2023 H2 2024 H2 2023 Re-organisation cost (21.6) (62.9) (11.4) (38.1) US Spices one-off charges (30.8) - (30.8) - US almonds one-off charges (61.0) - (61.0) - Funds Management Business Closure (16.5) - (1.3) - Australia almonds lower crop yield - (116.5) - (5.2) Exc
Slide 48: Balance sheet
Balance sheet S$ million Dec-2024 Dec-2023 Change Fixed Capital 9,531.7 9,454.8 76.9 Right-of-use assets 905.0 791.0 114.0 Uses of Working Capital 17,866.8 9,580.5 8,286.3 Capital Cash 3,329.7 3,581.6 (251.9) Others (1,219.6) 554.5 (1,774.1) Total 30,413.6 23,962.4 6,451.2 Equity & Reserves 7,072.8
Slide 49: Cash flow statement
Cash flow statement S$ million 2024 2023 Change H2 2024 H2 2023 Change Operating Cash flow 2,528.6 2,255.7 272.9 1,285.5 1,192.4 93.1 (before Interest & Tax) Changes in Working Capital (6,073.4) (1,224.8) (4,848.6) (561.1) (561.6) 0.5 Net Operating Cash Flow (3,544.8) 1,030.9 (4,575.7) 724.4 630.8 9
Slide 50: 2024 Results Briefing
2024 Results Briefing olamgroup.com/investors.html ir@olamnet.com