Olam Group Limited · SGX:VC2
Olam — Olam International — Merger or Acquisition (September 2007)
12 slides from Olam's merger presentation, Sep 12, 2007
Slide 1: 100% Acquisition of Naarden Agro Products B.V.
Olam International Limited 100% Acquisition of Naarden Agro Products B.V. 12 September 2007 Singapore 0
Slide 2: Forward looking statements
Forward looking statements This presentation may contain statements regarding the business of Olam International Limited (‘Olam’) and its subsidiaries (‘Group’), Naarden Agro Products B.V that are of a forward looking nature and are therefore based on management’s assumptions about future developmen
Slide 3: Presentation Outline
Presentation Outline Transaction Overview Target Overview Investment Rationale - Strategic Fit Synergy and Financial Impact Summary 2
Slide 4: Transaction Overview
Transaction Overview Transaction Acquisition of 100% of the equity capital of Naarden Agro Products B.V., an established marketeer of Industrial caseins, caseinates and milk derivatives Intrinsic Value/Investment Value far exceeds threshold of 1.35x Consideration Equity consideration of approx
Slide 5: Overview of Naarden Agro Products B.V
Overview of Naarden Agro Products B.V Set up in 1993 in Holland by 2 individuals, Mr. Guus Overmans and Mr. Zbigniew Kosmala Company is currently owned 50% each by Beheermaatschappij A.V.M. Overmans B.V. (promoted by Mr. Guus Overmans) and Apollo Group N.V Primarily engaged in the sourcing and marke
Slide 6: Global Casein Industry
Global Casein Industry Casein is the “main” protein found in milk – contains 21 amino acids Two types of Casein: Edible and Industrial Naarden specialises in Technical Casein (Industrial Casein) Casein – key segment statistics Global Production 364,000 MT valued at US$4.48 billion Edible Grade 319,0
Slide 7: Consistent with our Dairy Strategy
Consistent with our Dairy Strategy Key tenets of Olam’s Dairy Strategy Maintain a presence in all major origins and participate in key trade flows Establish a leading position in sourcing from highly fragmented but low production cost origins like Ukraine, Belarus, Argentina, China and India Backwar
Slide 8: Naarden offers a vantage entry point into this segment
Naarden offers a vantage entry point into this segment Organic entry poses some significant challenges Extensive technical and product knowledge Presence of established players and Existence of long standing customer relationships Naarden offers a secure and strong entry point into this niche segmen
Slide 9: Acquisition is in line with our inorganic growth strategy
Acquisition is in line with our inorganic growth strategy This Transaction Strategic Objectives Accelerated entry into identified new product adjacency 9 Accelerated access into a new geography Reduce timing to impact for a new value chain expansion initiative Overcome industry barriers 9
Slide 10: Multiple areas of synergy have been identified
Multiple areas of synergy have been identified Origination advantages More cost effective sourcing, given Olam’s established presence in all key casein producing countries Elimination of agency commissions Scale expansion Ready availability of working capital to enable Naarden to satisfy demand that
Slide 11: Financial impact
Financial impact (MTs) FY2008 FY2009 FY2010 Volume 4,378 6,455 8,000 (US$ mil) FY2008 FY2009 FY2010 Revenues 31.7 47.1 58.4 EBITDA 3.1 5.2 6.5 EBITDA 9.8 11.0 11.1 Margin (%) 10
Slide 12: Thank You Q&A
@ ; , . ¥ OLAM The Brand Behind The Brands
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