Olam Group Limited · SGX:VC2
Olam — Investor Presentation (November 2021)
32 slides from Olam's investor presentation, November 2021
Slide 1: Introduction to ofi
Introduction to ofi November 2021
Slide 2: Today's presenters
Today’s presenters A. Shekhar Rishi Kalra CEO CFO • Joined Olam • Joined Olam Group in 1992 Group in 2000 • CEO of ofi since • CFO of ofi since January 2020 January 2020 2
Slide 3: Cautionary note (1/2)
Cautionary note (1/2) BY ELECTING TO VIEW THIS PRESENTATION, YOU REPRESENT, WARRANT AND AGREE THAT YOU WILL NOT implied, as to the accuracy, completeness, correctness or fairness of the presentation, and no responsibility VIDEOTAPE, RECORD OR OTHERWISE ATTEMPT TO REPRODUCE OR RE-TRANSMIT THE CONTENT
Slide 4: Cautionary note (2/2)
Cautionary note (2/2) statements in this presentation are based on numerous assumptions regarding the Group’s present and Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold or otherwise future business strategies and the environment in which ofi will operate in th
Slide 5: Introducing ofi
Introducing ofi Others 32% 53% 15% Olam International Limited (“OIL”) Leading food and agri-business with 30+ year heritage A global leader at the forefront of food & beverage consumer trends delivering sustainable, natural, and Olam Global Agri (“OGA”) plant-based ingredients & solutions • Core agr
Slide 6: ofi in numbers
ofi in numbers Cocoa Coffee Nuts Spices Dairy 9.1 Billion revenue (US$) 771 Million EBITDA (US$) 551 Million EBIT (US$) 100 Manufacturing 48 Countries 15,000+ employees 8,000+ customers facilities Note: For the year ended 31 December 2020. All metrics exclude the impact of the Olde Thompson acquisit
Slide 7: Touching people's lives… Everyday. Everywhere.
Touching people’s lives… Everyday. Everywhere. 1 in 5 chocolate bars consumed globally use our cocoa beans and products The coffee beans we supply can provide around 90 billion cups of coffee Our annual volume of dairy products can make 32 billion slices of cheese Almonds we supply will produce enou
Slide 8: Right for the consumer, producer & planet
Right for the consumer, producer & planet Sustainable & Health & Wellness Traceable “Natural,” plant-based End-to-end supply chain ingredients delivering health provenance and traceability, and wellness benefits consumers addressing social equity, and want. environmental concerns. Consumption Taste
Slide 9: ofi – attractive portfolio with strong growth prospects
ofi – attractive portfolio with strong growth prospects 1 Value-added ingredients & solutions, Leading on-trend portfolio, serving large, attractive serving ~US$750bn1 key end-use categories, and growing end-use categories which are growing at ~6% CAGR1,2 2 Integrated with Access to presence ~2.6 mi
Slide 10: Serving large, attractive and growing end-use categories
1. Leading on-trend portfolio, serving large, attractive and growing end-use categories Serving large, attractive and growing end-use categories Key Total end-use end-use categories categories Beverages Bakery Confectionery Snacking Culinary Key end-use category size1,2 (US$bn) ~$300 ~$160 ~$180 ~$5
Slide 11: Diversified and complementary offering across multiple product categories and channels
1. Leading on-trend portfolio, serving large, attractive and growing end-use categories Diversified and complementary offering across multiple product categories and channels Cocoa Coffee Nuts Spices Dairy ✓ Beans ✓ Green Coffee ✓ Nut-type ✓ Dried Onion & Garlic ✓ Whole milk powder ✓ Butter ✓ Solubl
Slide 12: Delivering value-added solutions to our customers as an integrated platform
1. Leading on-trend portfolio, serving large, attractive and growing end-use categories Delivering value-added solutions to our customers as an integrated platform End Market Categories Beverages Bakery Confectionery Snacking Culinary Cocoa Chocolate Cocoa Cocoa Mocha cookies Truffles bars vinaigret
Slide 13: Diversified global origination & manufacturing footprint
2. Delivering global, innovative and integrated solutions Diversified global origination & manufacturing footprint Americas Africa Europe Asia Farmer network 2.6 million Countries 11 13 12 12 Employees 3,700+ 1,900+ 1,300+ 8,600+ Manufacturing Plants 28 10 14 48 13
Slide 14: An integrated value-added ingredients business
2. Delivering global, innovative and integrated solutions An integrated value-added ingredients business Diversified offering across cocoa, coffee, nuts, spices, dairy Ingredients and Global Sourcing Solutions Farming, Origination & Value-added Sourcing – Processing, Innovation “Farm-Gate” Presence
Slide 15: Strategic presence across the entire value chain enhances ofi's customer proposition
2. Delivering global, innovative and integrated solutions Strategic presence across the entire value chain enhances ofi’s customer proposition Global Sourcing Ingredients and Solutions Farming, Origination & Sourcing – “Farm-Gate” Presence Value-added Processing, Innovation and Co-Creation Farming S
Slide 16: Embedding innovative digital solutions across the value chain
2. Delivering global, innovative and integrated solutions Embedding innovative digital solutions across the value chain Digitising across the entire value chain Manufacturing Farming Origination Supply Chain Customers & Innovation Drone Image Olam Direct Digital Warehouse Digital OEE1 SMB2 e-commerc
Slide 17: "Open innovation" platform
2. Delivering global, innovative and integrated solutions “Open innovation” platform Internal Innovation Expertise External Innovation Partners Total of 14 bespoke customer solution & ingredient excellence centres + Plant Science Institutes, Private Research Organisation, Culinary Academies, Product
Slide 18: Sustainability is ingrained in ofi's way of doing business
3. Differentiated customer proposition, with end-to-end traceability and sustainability impact Sustainability is ingrained in ofi’s way of doing business Select examples Key sustainability targets and milestones 1 No poverty Offer end-to-end traceability 100% traceability, child labour and deforesta
Slide 19: Sustainability insights platform, driving a differentiated customer proposition
3. Differentiated customer proposition, with end-to-end traceability and sustainability impact Sustainability insights platform, driving a differentiated customer proposition AtSource – insights platform Selected AtSource+ statistics1 Dashboard Offering different levels of data through the insights
Slide 20: Global & diversified customer base
4. Trusted partner to a global & diversified customer base Global & diversified customer base Serving… 8,000+ Customers globally We have valuable long-term relationships with global and regional customers A blue chip customer base… … that is globally diverse Africa Largest cust. 9% 6% Next 9 custome
Slide 21: Driving customer centricity across ofi
4. Trusted partner to a global & diversified customer base Driving customer centricity across ofi 1 Prioritization & segmentation 8,000+ ofi customers 2 Approach 3 Combining forces Sales & Channels a Sell more Cross-ofi attractiveness Increase the share-of- value with our prioritised customers Growt
Slide 22: Driving customer centricity across ofi
4. Trusted partner to a global & diversified customer base Driving customer centricity across ofi ~90% 60%+ of accounts with ~50% of priority accounts 3 ~30% revenue CAGR for customer retention1 10+ years tenure2 buy from multiple ofi platforms private label business4 Select Examples Outcome Custome
Slide 23: Experienced, global, & inspired organisation
5. Experienced, global, and inspired talent pool Experienced, global, & inspired organisation 15,000+ Employees >85% Management engagement 54 score1 Nationalities RECOGNITIONS - Great Place to work certified (2021) – USA, Olam Brazil, Singapore - AON Kincentric (2020) – Best employer in Regional Asi
Slide 24: … supported by a strong and experienced Board
5. Experienced, global, and inspired talent pool … supported by a strong and experienced Board Key Board statistics 3 committees: Governance and Nominations, Audit and Risk, Remuneration and Talent Niall FitzGerald Shekhar Anantharaman Rishi Kalra Chair Chief Executive Officer Chief Financial Office
Slide 25: Visible transition towards value-added solutions
6. Proven and repeatable growth model Visible transition towards value-added solutions Higher volumes in Global Sourcing supporting shift towards Ingredients Strong EBIT trajectory in both segments pre-COVID and Solutions Volume evolution (k MT) Captive volume EBIT (US$m) 2020 Impacted by COVID-19 1
Slide 26: 1H'21 trading update
6. Proven and repeatable growth model 1H’21 trading update Building on strong momentum in 1H’21, as we head into 2H’21 Volume1,4 (k MT) EBIT4 (US$m) EBIT Margin4 (%) ROIC2,4 (%) 1H’20 – 1H’21 growth Growth 8.6% 8.8% 5 29.5% Impact of higher prices 8.3%5 and subdued margins in 7.9% (7.9%) 31.1% 8.2%
Slide 27: Resilient EBIT growth despite raw material price volatility
6. Proven and repeatable growth model Resilient EBIT growth despite raw material price volatility 140 130 120 110 100 90 80 70 60 Jan-17 Jan-18 Jan-19 Jan-20 S&P GSCI Coffee S&P GSCI Cocoa MCX Almond Milk Price Annc Class I USDA Sustained EBIT growth through effective forward contracts and price ris
Slide 28: ofi – growth framework
6. Proven and repeatable growth model 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
Slide 29: Inorganic growth – disciplined buying
6. Proven and repeatable growth model Inorganic growth – disciplined buying Proven track record of value accretive M&A Cocoa >30 ~$4bn ADM Cocoa (2015) US$40m EBITDA 1 Adding large-scale processing capabilities to synergies complete a fully integrated delivered acquisitions since 2007 total spend on
Slide 30: Growth strategy in practice: spices
6. Proven and repeatable growth model Growth strategy in practice: spices Mix of organic & inorganic investments with successful integration; building a leading global spice & seasoning platform • Whole • Facility • Pepper • Vietnam plant Spices expansions: (US plantations expansion Organic Trader o
Slide 31: Key takeaways
Key takeaways Leading on-trend ingredients portfolio… … … serving large, attractive and … delivering global, innovative growing end-use categories… and integrated solutions... … offering end-to-end traceability … by being a trusted partner to a and sustainability impact... diversified customer base…
Slide 32: Please visit our "Unleash natural potential" series
Please visit our “Unleash natural potential” series https://www.ofiexperience.com/