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Building Relevant Scale : Delivering the Olam Strategy 11
Building Relevant ScaleDelivering the Olam Strategy
Investor Presentation
Updated on 15 May 2012
Building Relevant Scale : Delivering the Olam Strategy 22
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 looking statements are intended to be identified by words such as ‘believe’, ‘estimate’, ‘intend’, ‘may’, ‘will’, ‘expect’, and ‘project’ and similar expressions as they relate to the Group. Forward-looking statements involve certain risks and uncertainties because they relate to future events. Actual results may vary materially from those targeted, expected or projected due to several factors.
Potential risks and uncertainties includes such factors as general economic conditions, foreign exchange fluctuations, interest rate changes, commodity price fluctuations and regulatory developments. The reader and/or listener is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward looking statements.
Cautionary note on forward-looking statements
Building Relevant Scale : Delivering the Olam Strategy 33
Demand
• Growing population
• Increasing food consumption per capita with rising income
• Dietary shift to protein and fat rich diets
• Rapid urbanisation resulting in higher per capita consumption
• Growing use of biofuel
Supply
• Decline in agricultural productivity• Declining arable land• Urbanisation impact• Water constraints• Carbon constraints• Impact of climate change• Environmental constraints• Logistics and storage chokes
Agri-commodity demand-supply imbalances expected to widen going forward
The Agri-complex is an attractive industry with strong growth prospects
We assessed key industry trends in 2009 to identify profitable new growth ideas
Building Relevant Scale : Delivering the Olam Strategy 44
Goals
Strategic thrusts
Enablers
Excellence in execution Capital efficacyM&A effectiveness People & Values• Institutionalise Program Management capabilities
• Acquire capabilities in upstream plantation/farm management & midstream VA processing
• Complexity management• Scalable IT, Risk, Control & Compliance systems
• Continue to grow global talent pool• Deepen entrepreneurial culture• Continue to embed stretch and ambition
• Create ownership culture• Build empowered teams
• Actively build M&A pipeline and develop prioritisation
• Deepen due diligence capabilities• Institutionalise best-in-class integration practices
• Strengthen capital structure and build financial flexibility
• Continuously improve overhead and capital productivity
To be the leading global supply chain manager and processor of agri-commodities by:• Serving growers and customers globally • Pursuing select scalable & attractive niches in upstream (plantations/farming) and mid-stream (value added processing)• Capitalising on our emerging markets expertiseV
ision
Our governing objective is to maximise long term intrinsic value for our continuing shareholdersPursue 3 key drivers: 1) Open up Capital Spreads (ROE-KE, ROIC-WACC); 2) Increase the Rate of Profitable Growth;
and 3) Sustain duration of growth
• Increase Intrinsic Value by 3-4x over the next two 3-year cycles. NPAT target US$450 million by FY2015• Pursue profitable growth & improve margin structure (NPAT margin ≥4% by 2015) by selective participation in attractive value chain adjacencies (upstream & mid-stream)
• Maintain financial and strategic flexibility for a wide range of economic scenarios (developing minimalist, balanced & unconstrained plans)• Be widely recognised as a responsible and sustainable value creator
Downsize/exit/ prune
unattractive activities
Build onlatent assets
Optimise and extract
full valuefrom core
Invest to achieve
integrated value chain leadership
Selectively expand into
attractive value chain
adjacencies
Cocoa, Coffee, Edible Nuts, Spices & Vegetable Ingredients,
Natural Fibres
Grains, Sugar, Rice, Dairy, Palm & Rubber
Sesame &
Wood Products
Select product origins and profit centres,
eg. Pulses
Packaged Foods Business (PFB) in W. Africa,
Commodity Financial Services (CFS), Agri-Inputs (fertiliser)
And announced a 6-yr corporate strategy (FY10-15) to increase margins & quadruple intrinsic value
Building Relevant Scale : Delivering the Olam Strategy 55
Building unique competitive advantages in each value chain step
• Cost leadership (below the marginal cost producer’s cost of production)
• Multi products/origins
• Synergies across value chain
• Global footprint
• Global scale
• Out origination
• Value-added services
• Trading/Risk arbitrage/
Risk Management Skills
• High asset utilisation
• Control of choke points
• Customer loyalty
• Excess return opportunities
UpstreamUpstream Supply chainSupply chainMid/down
streamMid/down
stream
Building Relevant Scale : Delivering the Olam Strategy 66
2009
Edible nuts, Spices & Beans
Confec. & Bev. Ingredients
Food Staples & PackagedFoods
Rubber
CoffeeCocoa
Nat. fibresWood Prod.Industrial Raw
Materials
Commodity FS
Palm
GrainsDairy
Sugar/SweetnrsRice
PFB
FertiliserCFS
CashewPeanutsAlmonds
SpicesSesameHazelnuts
Upstream Mid/downstreamSupply chain
Until 2009, portfolio largely focused on the asset light supply chain core
Building Relevant Scale : Delivering the Olam Strategy 77
2015
Edible nuts, Spices & Beans
Confec. & Bev. Ingredients
Food Staples & PackagedFoods
Rubber
CoffeeCocoa
Nat. fibresWood Prod.Industrial Raw
Materials
Commodity FS
Palm
GrainsDairy
Sugar/SweetnrsRice
PFB
FertiliserCFS
CashewPeanutsAlmonds
SpicesSesameHazelnuts
Global leader FollowerRegional
Upstream Mid/downstreamSupply chain
Enter new products (Almonds, Hazelnuts,
Grains, Palm, Rubber & Sweeteners) & new
businesses (PFB, Fertiliser & CFS)
Plan envisaged significant change in portfolio shape by 2015
Building Relevant Scale : Delivering the Olam Strategy 88
Our Portfolio has evolved over time, largely focused on a single commodity asset class: agri-complex
5 SegmentsEdible Nuts,
Spices & Beans
Confectionery & Beverage Ingredients
Food Staples & Packaged
Foods
Industrial Raw Materials
Commodity Financial Services
65 Countries, 4 regions Asia, Oceania & Middle East
EuropeAmericas Africa
Packaged Foods
FertilisersCommodity
Financial ServicesAgri Commodities4 Cores
Edible nuts
Spices & Vegetable
Ingredients
Coffee
Cocoa
CFS
Palm
Grains & Oilseeds
Dairy
Sugar/Sweeteners
PackagedFoods
Rubber
Natural Fibres
Wood Products
Fertilisers
15 Platforms
Rice
6
3
3
3
4
4
4
3
3
2
2
7
2
9
4 Value chain steps Supply Chain DownstreamMidstreamUpstream
Building Relevant Scale : Delivering the Olam Strategy 99
Olam ADM Bunge Cargill Dreyfus Glencore Noble WilmarNo. of Major Competitors
Edible nuts None
SVI None
Coffee 2
Cocoa 3
Dairy None
Rice 2
Grains 7
Sugar/Sweeteners 6
Palm 4
PFB 1
Natural Fibres 4
Wood Products None
Rubber 1
Fertilisers None
CFS 3
Presence in products (#)
15 4 2 6 6 3 7 5
A highly defensible & differentiated portfolio
Building Relevant Scale : Delivering the Olam Strategy 10
Our strategy is granular on where to compete
Number of initiatives over next 5 years
~65 initiatives over 5 yrs
Building Relevant Scale : Delivering the Olam Strategy 1111
• Gilroy Foods (US)
• Britannia Foods (UK)
• Almonds processing (AUS)
• Soluble coffee manufacturing (Vietnam)
• Cocoa grinding (IVC)
• Wheat milling (Nigeria/Ghana)
• Sugar refining (Indonesia/Nigeria)
• Cashew mechanical processing (IVC/Nigeria)
• Queensland Cotton (Aus)
• Coffee sourcing (Mexico/Guatemala)
• Wood products sourcing (Panama/Costa Rica)
• Other new countries: Cambodia, Ecuador, M’sia
• Almonds orchards (AUS/US)
• Fertilizer manufacturing (Gabon)
• Coffee plantations (Laos/Tanzania/Ethiopia)
• Dairy farming (Uruguay)
• Palm/rubber plantations (W. Africa)
• Timber Forestry Concessions (Gabon/RoC/Moz.)
SELECT EXAMPLES
Strong momentum in successfully executing this plan
Building Relevant Scale : Delivering the Olam Strategy 1212
We committed to the strategy by investing US$2.81 billion in the first 21/2 years of the plan
BUs FY10 (US$M) FY11 (US$M) H1 FY12 ($USM) Total ($USM)
Spices 100 11 22 133
Cashew 18 24 2 43
Peanuts - - - -
Almonds 277 100 10 387
Hazelnuts - - 50 50
Coffee 42 86 53 181
Cocoa - 71 28 99
Dairy 10 235 68 312
Sugar - 180 90 270
Sesame 0 - - 0
PFB - 8 225 233
Rice - - 39 39
Grains 58 82 50 189
Timber - 42 - 42
Cotton - - - -
Fert - 678 - 678
Palm - 133 16 149
Rubber - - - -
Total 504 1,649 652 2,805
Of the above, US$1.7 billion has already been spent
Building Relevant Scale : Delivering the Olam Strategy 1313
Goals & Boundary Conditions:
• PAT margin >4%; RoE 25%; No further equity dilution
105 124194
293
Strong trajectory prompted us to revise our aspirationto achieve US$1B PAT by rolling forward our plan by 1 year to FY2016
//
Core earnings
Reported earnings
Olam PAT (US$ M)
Building Relevant Scale : Delivering the Olam Strategy 1414
Well diversified across scale platforms
PAT by BU (US$ M)
3 platforms:>$100M PAT
7 platforms:$50-100M PAT
4 platforms:<$50M PAT
Building Relevant Scale : Delivering the Olam Strategy 1515
Leading to a well balanced portfolio with greater than 25% ROE
PAT (US$ M)ROE FY16
26%
27%
31%
20%
* Upstream includes Fertilisers
Building Relevant Scale : Delivering the Olam Strategy 16
Capital allocated in line with strategy
2016 Total Capital Employed
Building Relevant Scale : Delivering the Olam Strategy 1717
Strong operating cashflow outlook
Free cash flow profile
Free cash flow
Cash Balance
Building Relevant Scale : Delivering the Olam Strategy 1818
Our Governing Objective is to maximise long term intrinsic value for our continuing shareholders in an ethical, socially responsible
& environmentally sustainable manner
Our Governing Objective is to maximise long term intrinsic value for our continuing shareholders in an ethical, socially responsible
& environmentally sustainable manner
Open up capital spreads
Increase the rate of profitable
growth
Sustain duration of
growth
3 key drivers to achieving our governing objective
ROE-KE: 15%ROIC-WACC: 7%
PAT growth FY11-16: 26%
PAT growth Horizon 2
Revised plan is in line with our Governing Objective
Building Relevant Scale : Delivering the Olam Strategy 1919
Open up capital spreads
Increase the rate of profitable
growth
Sustain duration of
growth
ROE-KE: 15%ROIC-WACC: 7%
PAT growth FY11-16: 26%
PAT growth Horizon2
3 key drivers to achieving our Governing Objective
Double net profit margin
to 4% by:
� Selectively integrating
upstream
� Selectively expanding
into midstream
Developing new latent
asset businesses (CFS,
PFB & Fertiliser).
Differentiate, build
sustainable competitive
advantage & scale
Invest to secure
future growth in
Horizon 2 (FY2017-
2021).
Grow by expanding in
to adjacent products,
geographies,
businesses & value
chains.
Building Relevant Scale : Delivering the Olam Strategy 2020
Improve rural livelihood of farmers/growers(launched the Olam Livelihood Charter)
110+ initiatives across 30 countries including crop financing of $21m, $2.4m in training to 58,000
farmers with a buy back of $102m
Improve rural livelihood of farmers/growers(launched the Olam Livelihood Charter)
110+ initiatives across 30 countries including crop financing of $21m, $2.4m in training to 58,000
farmers with a buy back of $102m
CR&S: A core part of our beliefs & embedded in our business model
30Countries
110+Initiatives
>1.5M Farmers
Full compliance with Sustainable Forest Management standards, RSPO & other relevant
industry standards
Full compliance with Sustainable Forest Management standards, RSPO & other relevant
industry standards
Provide Environmental stewardship - working with academic institutions, industry experts & NGOs to
bring international standards into emerging economies to take leadership in sustainable supply chains
Provide Environmental stewardship - working with academic institutions, industry experts & NGOs to
bring international standards into emerging economies to take leadership in sustainable supply chains
Building Relevant Scale : Delivering the Olam Strategy 2121
Olam 2009 Corporate Strategy Recap
Financials
Shareholding Structure
Recognitions
Agenda
Building Relevant Scale : Delivering the Olam Strategy 2222
Summary – Since IPO
Description FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 CAGR (%)
Volume(‘000 metric tonnes)
2,553 3,172 3,773 4,926 5,721 7,006 8,452 22.1
Revenue (S$m) 3,369 4,361 5,456 8,112 8,588 10,455 15,735 29.3
NC (S$m) 193 259 351 518 607 901 1,223 36.0
NC/tonne (S$) 76 82 93 105 106 129 145 11.4
NPAT (S$m) 66 87 109 168 252 360 445 37.5
NPAT (S$m)
(Ex. Exceptionals) 66 87 109 151 182 272 373 33.5
EPS (Cents) 5.11 5.61 6.85 10.28 14.71 17.91 20.27 25.8
EPS (Cents)
(Ex. Exceptionals) 5.11 5.61 6.85 10.09 10.96 14.58 17.58 22.9
Building Relevant Scale : Delivering the Olam Strategy 2323
Summary – FY 2011
(in S$ million) FY2011 FY2010 % Change
Sales Volume (MMT) 8.452 7.006 20.6
Sales Value 15,734.9 10,455.0 50.5
Net Contribution (NC) 1,222.8 900.7 35.8
NC/ton 145 129 12.5
Profit After Tax
(Excluding exceptional items) 372.8 271.8 37.1
Exceptional Items 57.1 87.6 (34.8)
Non-controlling interests 14.7 0.3 -
Reported Net Profit 444.6 359.7 23.6
PAT margin (%)
(Excluding exceptional items) 2.4% 2.6% -
PAT margin (%)
(Excluding exceptional items)
2.8% 3.4% -
Building Relevant Scale : Delivering the Olam Strategy 2424
(in S$ million) 9M FY2012 9M FY2011 % Change
Sales Volume (MMT) 7.219 6.158 17.2
Sales Value 11,947.7 11,239.6 6.3
Net Contribution (NC) 941.7 815.8 15.4
NC/ton 130 132 (1.5)
Profit For the Period 289.0 301.7 (4.2)
(-) Exceptional Items - 35.8 -
(-) Non-controlling interests 27.6 (0.7) -
Operational Profit for the Period 261.4 266.6 (2.0)
9M FY2012: Strong growth in Volumes and Net Contribution
Building Relevant Scale : Delivering the Olam Strategy 2525
FY2011 FY2010
(MT/’000) (MT/’000)
Edible Nuts, Spices & Beans 1,275 1,108 15.0
Confectionery & Beverage
Ingredients1,484 1,288 15.2
Food Staples & Packaged
Foods4,102 3,207 27.9
Food Category Total 6,860 5,603 22.4
Industrial Raw Materials 1,591 1,403 13.4
Consolidated Total 8,452 7,006 20.6
Segments % Change
FY 2011: Sales Volume
Building Relevant Scale : Delivering the Olam Strategy 2626
9M FY2012 9M FY2011
(MT/’000) (MT/’000)
Edible Nuts, Spices & Beans 1,034 904 14.4
Confectionery & Beverage
Ingredients1,267 1,156 9.6
Food Staples & Packaged
Foods3,776 2,980 26.7
Food Category Total 6,077 5,040 20.6
Industrial Raw Materials 1,142 1,118 2.1
Consolidated Total 7,219 6,158 17.2
Segments % Change
9M FY12: Segmental Sales Volume
Building Relevant Scale : Delivering the Olam Strategy 2727
FY2011 FY2010
S$million S$million
Edible Nuts, Spices & Beans 296.6 210.9 40.7
NC/MT (S$ / ton) 232.7 190.3 22.3
Confectionery & Beverage Ingredients 314.4 222.8 41.1
NC/MT (S$ / ton) 211.8 172.9 22.5
Food Staples & Packaged Foods 302.5 233.9 29.3
NC/MT (S$ / ton) 73.7 72.9 1.1
Food Category Total 913.6 667.6 36.8
NC/MT (S$ / ton) 133.1 119.1 11.8Industrial Raw Materials 283.9 208.1 36.4
NC/MT (S$ / ton) 178.3 148.2 20.3
Commodity Financial Services Group 25.4 25.1 1.4
Consolidated Total 1,222.8 900.7 35.8
NC/MT (S$ / ton) 144.6 128.5 12.5
SegmentsNet Contribution
% change
FY 2011: Net Contribution & NC/ MT Growth: Segmental Analysis
Building Relevant Scale : Delivering the Olam Strategy 2828
9M FY2012 9M FY2011
S$million S$million
Edible Nuts, Spices & Beans 264.2 192.8 37.0
NC/MT (S$ / ton) 255.3 213.1 19.8
Confectionery & Beverage Ingredients 272.4 210.5 29.4
NC/MT (S$ / ton) 215.1 182.1 18.1
Food Staples & Packaged Foods 305.7 240.0 27.4
NC/MT (S$ / ton) 80.9 80.5 0.5
Food Category Total 842.2 643.3 30.9
NC/MT (S$ / ton) 138.5 127.6 8.5
Industrial Raw Materials 98.6 151.3 (34.8)
NC/MT (S$ / ton) 86.3 135.3 (36.2)
Commodity Financial Services 0.8 21.1 (96.0)
Consolidated Total 941.7 815.8 15.4
NC/MT (S$ / ton) 130.4 132.4 (1.5)
SegmentsNet Contribution
% change
9M FY12: Net Contribution & NC/ MT Growth: Segmental Analysis
Building Relevant Scale : Delivering the Olam Strategy 2929
FY 2011: Key Earnings Metrics
Reported Net Profit : S$444.6 m
• 23.6% growth over FY2010
Operational Net Profit After Tax (Excluding Exceptional Items): S$372.8 m
• 37.1% growth over FY2010
Reported Earnings per Share (EPS)
• 20.27 cents/share in FY2011 vs 17.89 cents/share in FY2010
• 13.3% growth over FY2010
Operational Earnings per Share (EPS)
• 17.58 cents/share in FY2011 vs 13.53 cents/share in FY2010
• 29.9% growth over FY2010
Net Asset Value (NAV before fair value adjustment)
• 114.88 cents/share in FY2011 vs 99.98 cents/share in FY2010
Building Relevant Scale : Delivering the Olam Strategy 3030
Profit for the Period: S$289 m
• 4.2% decline over 9M FY2011
Operational Profit for the Period: S$261.4 m
• 1.9% decline over 9M FY2011
Reported Earnings per Share (EPS)
• 10.64 cents/share in 9M FY2012 vs 14.34 cents/share in 9M FY2011
Operational Earnings per Share (EPS)
• 10.64 cents/share in 9M FY2012 vs 12.64 cents/share in 9M FY2011
Net Asset Value (NAV before fair value adjustment)
• 144.76 cents/share in 9M FY2012 vs 114.88 cents/share in FY2011
9M FY12: Key Earnings Metrics
Building Relevant Scale : Delivering the Olam Strategy 3131
FY 2011: Key Return Metrics
ROE (BOPE)
• 21.3% in FY2011 vs 29.3% in FY2010• Equity Spread (ROE-KE) 11.3%
ROE (Average)
• 18.7% in FY2011 vs 22.2% in FY2010
ROIC (Average)
• 14.3% in FY2011 vs 14.0% in FY2010• Total Capital Spread (ROIC-WACC) 7.1%
Building Relevant Scale : Delivering the Olam Strategy 3232
Olam Consolidated• Turnover
• Volume
• NC
• NPAT
Confectionery
& Beverage
Ingredients• Turnover
• Volume
• NC
• NC Share
Industrial Raw
Materials
• Turnover
• Volume
• NC
• NC Share
Edible Nuts,
Spices & Beans
Food Staples &
Packaged
Foods• Turnover
• Volume
• NC
• NC Share
Commodity
Financial
Services Group
•NC
• NC Share
• Turnover
• Volume
• NC
• NC Share
S$ 2184 m
1.275 mmts
S$296.6 m
24.3%
S$15735 m
S$8.452 mmts
S$1222.8 m
S$444.6 m
S$6361 m
1.484 mmts
S$314.4 m
25.7%
S$3460 m
4.102 mmts
S$302.5 m
24.7%
S$3730 m
1.591 mmts
S$283.9 m
23.2%
S$25.4 m
2.0%
FY 2011: Segmental Analysis: Summary
Building Relevant Scale : Delivering the Olam Strategy 3333
Olam Consolidated• Turnover
• Volume
• NC
• NPAT
Confectionery
& Beverage
Ingredients• Turnover
• Volume
• NC
• NC Share
Industrial Raw
Materials
• Turnover
• Volume
• NC
• NC Share
Edible Nuts,
Spices & Beans
Food Staples &
Packaged
Foods• Turnover
• Volume
• NC
• NC Share
Commodity
Financial
Services Group
•NC
• NC Share
• Turnover
• Volume
• NC
• NC Share
S$1715 m
1.034 mmts
S$264.2 m
28.0%
S$11948 m
7.219 mmts
S$941.7 m
S$289 m
S$4597 m
1.267 mmts
S$272.4 m
28.9%
S$3055 m
3.776 mmts
S$305.7 m
32.5%
S$2581 m
1.142 mmts
S$98.6 m
10.5%
S$0.8 m
0.1%
9M FY12: Segmental Analysis: Summary
Building Relevant Scale : Delivering the Olam Strategy 3434
Value Chain Segmental Analysis
Value Chain
Initiatives
Jun-11 Jun-10 Jun-11 Jun-10 Jun-11 Jun-10
Supply
Chain & VAS13,784 9,163 50.4% 864 635 36.1% 572 403 41.9%
Margin (%) 6.3% 6.9% 4.2% 4.4%
Per Ton 121 109 80 70
Upstream 306 219 39.5% 170 110 54.3% 154 99 56.1%
Margin (%) 55.7% 50.4% 50.5% 45.1%
Per Ton 633 453 573 406
Midstream &
Downstream1,645 1,073 53.3% 189 156 21.3% 136 106 29.3%
Margin (%) 11.5% 14.5% 8.3% 9.8%
Per Ton 176 161 127 109
Total 15,735 10,455 50.5% 1,223 901 35.8% 863 608 42.0%
Margin (%) 7.8% 8.6% 5.5% 5.8%
Per Ton 145 129 102 87
Sales Revenue
(in S$ m)
Net Contribution
(in S$ m)
EBITDA
(in S$ m) Growth
%
Growth
%
Growth
%
Building Relevant Scale : Delivering the Olam Strategy 3535
Segmental Net Contribution Trends
Segmental NC/Ton FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 CAGR (%)
Edible Nuts, Spices & Beans
114 110 121 155 159 190 233 12.6
Confectionery & Beverage Ingredients
114 130 148 142 144 173 212 10.9
Food Staples & Packaged Foods
25 32 37 52 58 73 74 19.7
Industrial Raw Materials
98 111 132 127 126 148 178 10.5
NC/tonne (S$) 76 82 93 105 106 129 145 11.4
Building Relevant Scale : Delivering the Olam Strategy 3636
Well Diversified Sourcing: Origins
Building Relevant Scale : Delivering the Olam Strategy 3737
Well Diversified Sales: Markets
Building Relevant Scale : Delivering the Olam Strategy 3838
• Investment in fixed term assets funded through permanent capital
• Investment in working capital funded through a combination of long term and short-term debt
In S$M, as of Mar 2012
Strong and resilient Balance Sheet
Building Relevant Scale : Delivering the Olam Strategy 3939
Cash-to-cash cycle (days)
Stock (days) andStock (days) andAdvance to Suppliers (days)
Debtor (days) and Trade Creditor Debtor (days) and Trade Creditor (days)
Working capital Analysis
Building Relevant Scale : Delivering the Olam Strategy 4040
Edible Nuts, Spices & 1,066 1,229 (163) 950
Confectionery & Beverage
Ingredients 1,478 1,424 54 1,119
Food Staples & Packaged
Foods 904 779 125 792
Industrial Raw Materials 1,089 1,138 (49) 723
Total 4,537 4,570 (33) 3,584
(in S$ million) 9M FY2012 FY2011H1 FY2012Increase /
Decrease
87.6% of inventories sold forward or hedged
Inventory Analysis
Building Relevant Scale : Delivering the Olam Strategy 4141
*RMI: inventories that are liquid, hedged, or sold forward
In S$M, as of Mar 2012
Strong liquidity profile
Building Relevant Scale : Delivering the Olam Strategy 4242
9M FY2012 FY2011 Change
Gross Debt to Equity (x) 2.22 2.56 (0.34x)
Net Debt to Equity (x) 1.89 2.22 (0.33x)
Adjusted Net Debt to
Equity (x)0.42 0.54 (0.12x)
Cash to Sales (%) 7.22% 5.54% -
Cash & Cash Equivalents (m) 1,150.3 872.2 278.1 m
Margin Deposit (m) (30.3) 457.1 (487.4 m)
Liquidity
Leverage (x)
Balance sheet Analysis: Gearing
Building Relevant Scale : Delivering the Olam Strategy 4343
Net debt/Equity as of Net debt/Equity as of June 30, 2011 (x)
Net debt/Equity as of Net debt/Equity as of March 31, 2012 (x)
*RMI: inventories that are liquid, hedged, or sold forward
Adjusted Net Gearing
Building Relevant Scale : Delivering the Olam Strategy 4444
Diversified Loan Profile
Building Relevant Scale : Delivering the Olam Strategy 4545
Description No. of shares %
Kewalram 479,265,793 19.62
Temasek (Seletar & Breedens) 390,398,453 15.98
Olam Management 218,107,201 8.93
Others 1,354,638,422 55.47
Total 2,442,409,869 100.00
Shareholding Structure
As of 31 Jan 2011 (Source: Thomson Reuters)
Management holding (including options) – 11.75%
46Building Relevant Scale : Delivering the Olam Strategy
Recognitions
Recipient of :
2011 Singapore Corporate Award winners for Best Managed Board and Best CEO – Mr. Sunny Verghese
Grass Roots Asia Pacific Award for Best Reward & Recognition Strategies, Singapore HRM Awards 2011
Medium-Cap Corporate of the Year (2010), Singapore by Asiamoney
Best Executive in Singapore (2010) – Mr. Sunny Verghese, CEO, by Asiamoney
Excellence in Innovation, Frost & Sullivan Growth Excellence Awards 2010
Forbes Asia's Fabulous 50, 2009 & 2010
Most Transparent Company (Commerce), SIAS Investors’ Choice Awards 2005-2011
Large Cap Corporate of the Year (2009), Singapore by Asiamoney
Global Top Company for Leaders and Top Company for Leaders in Asia Pacific 2009 by Hewitt Associates, The RBL Group and Fortune
2nd Runner-up (Singapore) – The Asset Corporate Governance Awards 2008
2008 World Business and Development Award
Singapore Corporate Awards 2007: Best Annual Report (Gold: Newly-Listed Firms), Best Managed Boards (Silver), Best Investor Relations (Bronze)
46
Building Relevant Scale : Delivering the Olam Strategy 4747
Thank You
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