Olam Group Limited · SGX:VC2
Olam — Merger or Acquisition (March 2022)
24 slides from Olam's merger presentation, Mar 25, 2022
Slide 1: Olam Group Limited
Olam Group Limited Strategic partnership with SALIC through the sale of substantial minority stake in Olam Agri for US$1.24 billion Media and Analysts Briefing | March 25, 2022
Slide 2: Cautionary statement
Cautionary statement This presentation should be read in conjunction with Olam Group Limited’s announcement and new release on the same subject lodged on SGXNET on March 25, 2022. Shareholders are advised to exercise caution in trading their Shares as there is no certainty or assurance as at the dat
Slide 3: Presenters
Presenters Sunny Verghese N. Muthukumar Co-Founder and Group CEO Group CFO 3
Slide 4: Strategic partnership with SALIC through sale of substantial minority stake
Strategic partnership with SALIC through sale of substantial minority stake
Slide 5: Table of Contents
Table of Contents 1. Transaction overview 2. Strategic rationale 3. Overview of SALIC 4. Key takeaways
Slide 6: A market leading and differentiated global food, feed and fibre agri-business
A market leading and differentiated global food, feed and fibre agri-business with a particular focus in high-growth emerging markets Purpose: Transform food, feed, and fibre for a more sustainable future Promise: A trusted partner that creates value for customers, enables farming communities to pro
Slide 7: Olam Agri at a glance
Food & Feed: Food & Feed: Fibre, Origination & Processing & Value Agri-Industrials & Merchandising Added Ag Services 30 9,100+ 41m 50+ countries employees tonnes in volume manufacturing & handled processing facilities S$31.3b S$753m S$930m revenue EBIT 2018-2021 CAGR: 46.7% EBITDA 2018-2021 CAGR: 42
Slide 8: Transaction overview
Transaction overview • The Saudi Agricultural and Livestock Investment Company (“SALIC”), a wholly owned subsidiary of Public Investment Fund (PIF) of the Kingdom of Saudi Arabia (KSA) to invest US$1.24 billion (approx. S$1.7 billion) for an estimated 35.4% stake in Olam Agri • Investment implies 10
Slide 9: Closing conditions
Closing conditions • Completion of the Transaction is subject to shareholders’ approval at the EGM and other customary closing conditions, including regulatory approvals • Subject to the conditions set out in the undertakings, OGL’s majority shareholder Temasek has provided an irrevocable undertakin
Slide 10: Table of Contents
Table of Contents 1. Transaction overview 2. Strategic rationale 3. Overview of SALIC 4. Key takeaways
Slide 11: Substantial minority stake sale in Olam Agri is a key milestone in Olam's ongoing Re-organisation
Substantial minority stake sale in Olam Agri is a key milestone in Olam’s ongoing Re-organisation Re-organisation Announcement in JanPlan 20’ Transaction today A transformative plan to re-organise the Strategic partnership with SALIC through current businesses into three distinct the sale of a subst
Slide 12: Positioning for future growth
Positioning for future growth 1. Illuminates and unlocks value for our shareholders, thereby completing one of the key milestones of the Re-organisation Plan 2. Crystallises a benchmark valuation for Olam Agri today, and creates a strong shareholder base for a potential future listing and demerger o
Slide 13: Illuminates and unlocks value for OGL shareholders
1. Illuminates and unlocks value for OGL shareholders S$4.7bn equity value² of Olam Current OGL market Agri is cap¹: S$6.8bn equivalent to 69% of the Transaction implies current OGL 100% of Olam Agri market cap at S$4.7bn² ¹ As of March 24, 2022 13 ² Subject to closing balance sheet adjustments
Slide 14: Crystallises a benchmark valuation for future potential IPO and demerger of Olam Agri
2. Crystallises a benchmark valuation for future potential IPO and demerger of Olam Agri Secures high quality, blue chip investors to facilitate a successful potential IPO Renowned global Wholly owned subsidiary of investment company Public Investment Fund (PIF) Japanese conglomerate Shares the Purp
Slide 15: Raises US$1.24 billion to right-size OG Group's capital structure and reduce leverage
3. Raises US$1.24 billion to right-size OG Group’s capital structure and reduce leverage Post the transaction, OG Group with its 64.6% stake in Olam Agri would realise net capital gains of S$1.19 billion Net gearing Adjusted net gearing which will accrete to the equity reserves of OG Group. 1.72 1.2
Slide 16: Generates synergies and catalyses access to new markets for Olam Agri through SSCA
4. Generates synergies and catalyses access to new markets for Olam Agri through SSCA with SALIC The transaction and the SSCA1 would allow Olam Agri to address the Kingdom of Saudi Arabia’s food security considerations as a strategic supplier on a commercial arms-length basis 34.8m 7.0m MT 0.7m MT P
Slide 17: Generates synergies and catalyses access to new markets through SSCA (cont'd)
4. Generates synergies and catalyses access to new markets for Olam Agri through SSCA with SALIC (cont’d) Mid to long-term Joint Olam Agri and SALIC operational benefits evaluation of upstream & between Olam Agri & Exciting opportunity to downstream investments SALIC such as expand further into to i
Slide 18: Table of Contents
Table of Contents 1. Transaction overview 2. Strategic rationale 3. Overview of SALIC 4. Key takeaways
Slide 19: About SALIC
About SALIC • SALIC was established in 2009 as a Saudi joint-stock company wholly owned by the Public Investment Fund (“PIF”). SALIC aims to achieve food security for the Kingdom of Saudi Arabia, investing in both domestic and international opportunities. • To ensure long-term food security, SALIC h
Slide 20: About SALIC: Foreign and domestic investments
About SALIC • In order to achieve its food security strategy via secure supplies and stable prices, SALIC has both a domestic and international investment mandate Foreign investments Australia Domestic investments a JV established by Bahri & SALIC Source: SALIC, public news runs (1) Acquired in part
Slide 21: Table of Contents
Table of Contents 1. Transaction overview 2. Strategic rationale 3. Overview of SALIC 4. Key takeaways
Slide 22: Key takeaways
Key takeaways • Completes one of the key milestones of the Re-organisation of OG Group • Illuminates and unlocks value for OGL shareholders • Crystallises a benchmark valuation and creates a strong shareholder base for a potential future IPO and demerger of Olam Agri • Raises significant proceeds to
Slide 23: Thank You
AA Olam Agri Thank You
Slide 24: olamgroup.com/investors.html
olamgroup.com/investors.html ir@olamnet.com