Olam Group Limited · SGX:VC2
Olam — Olam International — Shareholder Meeting (April 2021)
26 slides from Olam's shareholder meeting presentation, Apr 23, 2021
Slide 1: Re-imagining Olam: Unlocking long-term value and driving sustainable growth
Olam International Limited Re-imagining Olam: Unlocking long-term value and driving sustainable growth 26th Annual General Meeting | April 23, 2021 | Singapore
Slide 2: Cautionary note on forward-looking statements
Cautionary note on 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
Slide 3: Agenda
Agenda • 2020 Financial Performance • Re-organisation Plan: Progress update Olam International Limited 26th Annual General Meeting, April 23, 2021 3
Slide 4: 2020 Financial performance
2020 Financial performance
Slide 5: Group 2020 Results: Summary
Group 2020 Results: Summary VOLUME & REVENUE EBIT PATMI 44.4 M MT S$35.8 B S$1,070 M S$246 M +11.7% +8.6% +1.2% -22.3% Operational Free Cash Gearing PATMI Flow S$678 M FCFE 1.72x +36.0% -$592 M Note: Comparison is made against 2019 financial results which have been restated due to change in accounti
Slide 6: Group 2020 financial highlights
Group 2020 financial highlights Strong results amid Healthy balance sheet Final Dividend Covid-19 challenges amid rising prices Board of Directors 36.0% growth in Operational Strong cash position of S$3.1 recommends final dividend PATMI in 2020 to S$677.8 million billion as at end-2020 of 4.0 cents
Slide 7: Results by Operating Group
Results by Operating Group Volume ('000 MT) Revenue (S$ m) 2.9% 8.5% 4.9% Volume 35.0% OIL ('000 MT) OIL 44,409.7 OFI 35,820 20,058.4 OFI +11.7% OGA +8.6% +5.0% OGA 88.6% 60.1% EBIT (S$ m) Invested Capital (IC) (15.3%) (S$ m) 22.7% 20.6% OIL OIL 1,069.5 OFI 16,665.7 OFI +1.2% OGA +5.6% OGA 43.2% 72.
Slide 8: Olam Food Ingredients (OFI)
Olam Food Ingredients (OFI) EBIT (S$ Million) Invested Capital (S$ Million) +4.9% +2.1% -2.8% +6.1% 794 771 9,443 +43.3% 8,877 8,553 8,897 668 678 52% 50% 508 60% 50% 41% 58% 60% 63% 355 57% 55% 50% 59% 48% 50% 42% 40% 43% 40% 37% 45% 2017 2018 2019 2020 H2 2019 H2 2020 Dec-17 Dec-18 Dec-19 Dec-20 E
Slide 9: OFI: On track to deliver sustained growth
OFI: On track to deliver sustained growth • Resilient all-round performance despite the pandemic with strong earnings growth in H2 2020 • Increased customer focus by working closely with them to manage supply chain challenges, co-create innovative and sustainable solutions, and growing our customer
Slide 10: Olam Global Agri (OGA)
Olam Global Agri (OGA) EBIT (S$ Million) Invested Capital (S$ Million) +14.0% +40.3% +8.0% 462 +27.2% 3,780 312 330 44% 2,998 2,972 25% 16% 13% 225 45% 32% 2,122 30% 26% 42% 53% 34% 59% 47% 38% 36% 46% 31% 34% 28% 33% 32% 19% 9% 28% 2017 2018 2019 2020 Dec-17 Dec-18 Dec-19 Dec-20 EBIT/MT Restated Re
Slide 11: OGA: Strong execution of its Strategic Plan
OGA: Strong execution of its Strategic Plan • Continued to benefit from key secular trends: growing food security agenda, rising protein consumption, emerging markets food staples & fibre demand growth, rising tech adoption and sustainability focus • Diversified our business in emerging markets by e
Slide 12: Olam International (OIL)
Olam International (OIL) EBIT (S$ Million) Invested Capital (S$ Million) -149.2% -12.2% 57 34 19 3,958 4,138 3,921 0 0 3,443 -40 -36 -67 1,965 1,674 2,138 1,360 -117 -45 -69 -33 -66 1,820 2,173 2,247 2,083 -60 -59 -164 Dec-17 Dec-18 Dec-19 Dec-20 2017 2018 2019 Restated 2020 Restated EBIT/IC -0.8% -
Slide 13: OIL: Incubate platforms for future growth (Engine 2)
OIL: Incubate platforms for future growth (Engine 2) Criteria for selecting Engine 2 ventures •1 Aligned to our purpose: ‘Re-imagining Global Agriculture & Food Systems’ •2 Leveraging Olam’s core strengths & unique assets •3 Strategic & Financial value to Olam •4 Disruptive idea •5 Material & Scalab
Slide 14: Living Our Purpose: Re-imagining Global Agriculture & Food Systems
Living Our Purpose: ‘Re-imagining Global Agriculture & Food Systems’ Prosperous Farmers and Thriving Re-generation of the Food Systems Communities Living World Re-designing farming and food value Re-vitalising rural communities so Re-generating nature, to restore the chains so that all players profi
Slide 15: Re-organisation Plan: Progress update
Re-organisation Plan: Progress update
Slide 16: Re-organisation Plan
Re-organisation Plan ‘What’ To explore strategic options that would unlock and illuminate the current value in the business and develop new strategic pathways to create further long term value on a sustained basis ‘How’ By re-organising, simplifying and focusing our current diverse portfolio of busi
Slide 17: Re-organisation Plan
Re-organisation Plan Provide active stewardship to OFI & OGA Segments until carve-out, IPO & demerger, responsibly - De-prioritised/Exiting Assets: 4 BUs & 20 related assets divest non-core businesses & assets Olam - Gestating Businesses: Packaged Foods (Caraway), Olam Palm International earmarked f
Slide 18: OFI: sustainable, natural, on-trend food & beverage ingredients
A global leader offering sustainable, natural, on- trend, value-added food & beverage ingredients, so consumers can enjoy the healthy and indulgent products they love 18 18 SNG Olam_16.9_SNG_04222020.potx (1 ...
Slide 19: OFI: Cocoa, Coffee, Nuts, Spices, Dairy
Cocoa Coffee Nuts Spices Dairy 12.5 777 100+ S$ billion in revenue S$ million EBIT Manufacturing (2020) (2020) facilities ~50 15,700+ 8,350 Countries Employees Customers 19 19 SNG Olam_16.9_SNG_04222020.potx (1 ...
Slide 20: OFI: Key highlights
OFI: Key highlights Leading on-trend, natural, plant-based ingredients portfolio Serving large, attractive and growing key end-use categories Differentiated end-to-end sustainability & traceability impact Trusted partner to a global and diversified blue-chip customer base Large, global and inspired
Slide 21: OGA: Market leading & differentiated food, feed & fibre agri-business
OGA: Market leading & differentiated food, feed & fibre Olam Global Agri agri-business A market leading & differentiated global food, feed & fibre agribusiness focused on high growth emerging markets delivering superior returns. OGA is aligned to the key trends of meeting the rising demand for food
Slide 22: OGA at a Glance
Olam Global OGA at a Glance Agri #1 Flour and pasta manufacturer in Africa #7 Wheat miller globally 6,300 S$ 462m Customers 2020 around the EBIT world #2 Global Rice merchant and leading branded distributor in Africa #2 Global Cotton merchant 14.0% ~30 2017-2020 Countries of EBIT CAGR Leading indepe
Slide 23: OGA: Key highlights
Olam Global OGA: Key highlights Agri 1 Strategically positioned in the attractive Food & Agriculture sector supported by strong secular fundamentals, with a clear focus on high-growth emerging consumption markets 2 Differentiated business model, selectively integrated in the value chain 3 Delivered
Slide 24: Re-organisation: Progress update
Re-organisation: Progress update STEP 4 OFI IPO & Concurrent De- merger, OGA STEP 3 Strategic Options Carve-out and Subject to shareholder and regulatory approvals: STEP 2 Separation • Target OFI listing by H1 2022 STEP 1 Re-organisation • Dedicated implementation • OFI will be demerged from the Ola
Slide 25: In summary
In summary Resilient performance despite Covid-19 01 • Strong 36.0% growth in Operational PATMI and Operational ROE at 11.2% in 2020 • Market conditions and sentiments are beginning to improve from the worst impacts of Covid-19 in 2020; we expect favourable market environment to continue to improve
Slide 26: Olam 26th Annual General Meeting Presentation
Olam 26th Annual General Meeting Presentation olamgroup.com/investors.html ir@olamnet.com
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