Olam Group Ltd Basis Eg

Good morning, ladies and gentlemen. We're glad to have you here with us for our briefing on the half-year results and the June 2026 for Olam Group. And to those who have dug into our live webcast, a warm welcome. I'm Hang Hung from Olam Group Investor Relations. Today, I'm very pleased to be speaking here alongside Olam's new C-suite, To my right, A. Shekhar, a familiar face and a veteran. He is CEO of OFI, or Olam Food Ingredients, a food and ingredients solutions company born out of Olam Group, following our reorganisation in 2020. And prior to that, he was the Executive Director of OLAM International, as we were known. From the time we were publicly listed in 2005 and became Group COO until 2022. And he was recently reappointed as Executive Director of OLAM Group in April this year. To his right is Kay Venkat, who was appointed in April this year as the Group CFO. Venkataraman Krishnan He has played a catalytic role in the Group's transformation in both our inorganic growth and divestments, including notably the divestment of Mindsprint to Wipro in March this year. Last but not the least is Gautam Wadhwa, who joined Olam Group in April this year as CEO of OGH, Olam Global Whole Coal. Gautam is a senior transformation and value creation leader with over two decades of experience in leading complex change mandates, working across multiple ownership models and geographies to stabilise, transform and reposition the businesses for long-term growth and exit opportunities. Let me call your attention to this cautionary note on forward-looking statements here on this slide. You can read this on your own on your mobile device if you scan the QR code that is given to you or when you download the presentation on the webcast. So we will deliver the results briefing slightly differently from before. Shekhar, as Executive Director of the Group, will lead with the key highlights for the first half and then move on to the results of OFI. As CEO of OFI, He will be providing more colour about OFI as well as the context for reading the results. Thereafter, Gautam will present OGH and its half-year results. Banker Desk Group CFO will then discuss the consolidated results of the whole group before Shekhar comes back with the key takeaways for this briefing. I appreciate your attention and I will now hand over to Shekhar.

Thank you, Hong Kong, and good morning to all of you. Great to be back in Singapore in the National Day week, as well as back with all of you. This is quite an It's a half-year results briefing, but it's quite an important milestone for the company on multiple fronts. One is the obvious changes that Hangung alluded to. So we are missing Sunny and Motu, who have been long-term partners to both Hangung and me on this table. But we wish them luck. They've built a great legacy and a future that they're leaving behind for the group. But they have a new job to do, and they're on their way, well on their way, and send their regards. but even more important to welcome both KV and Gautam who will be helping us along with the teams in OFI and OGH to shape the future which is again quite different but very interesting and exciting and so therefore we are pleased that this half year is in a way signals the transition of the new Olam Group, if I can call it that, although there are a lot of the transitions still underway and needs to be completed. The important milestones that we will be discussing, which all of you have probably heard about and it's been disclosed, so the two important transactions that got completed in this half-yearly period was one, the tranche one of the Olam Agri sale and the and complete divestment of Mindsprint, which was our IT and business services center, to Wipro. So both these are important parts of the reorganization plan and have significantly strengthened the group balance sheet, provided us significant financial flexibility, which is even more critical in these times and certainly for the continuing businesses, and then also clearly demonstrate our ability to unlock value For our shareholders and indeed our stakeholders. So I think these two transactions are two transactions that we had planned for, taken more time than we anticipated, but signal a very important set of balance sheets strengthening financial flexibility and providing the capacity to unlock value that we still need to do and more to come. The second part that is important for this half-yearly period to highlight is that we will now have what we are calling as continuing businesses, but these are the businesses which will drive Olam Group forward. So obviously you heard me talk about OFI and I will be talking about OFI. The actions that have been taken will enable OFI to pursue its full independent future and invest for that future. So therefore, when we talk you through the half early results, you'll see the trajectory over the last three, four years, which has had a lot of noise, as we know, and which we have discussed before. But it's also got a lot of things going, and the trajectory of travel, also demonstrated partially in H1, will show that direction of travel which provides a view of the future of the continuing business of the Chitraupaya, which is a fairly significant part of that future. Aditya Renjan, Rajeev Pandurang Kadam Aditya Renjan, Rajeev Pandurang Kadam and the last, in my mind, probably the most important message I want to leave. So the group is now simpler, less complex, far more focused and significantly stronger financially. and I think that is what is the message I hope partially you'll see in the H1 results but more to come in the full year results as we restructure the continuing businesses into there and then more likely in 27 and 20 when you'll see the full impact of all these changes which will happen through the rest of the year so it won't all happen within the year but the impact will be visible in rest of 26 as well as in 27. So that's the preamble because it's a new reset. I thought it would be useful to kind of set that preamble. So what does all this mean? And it means in terms of highlights three things. The first, the two transactions that we talked about have created in this half year $1.75 billion gain, $1.35 billion round numbers from the Olam Agri Transchwan transactions and Mindsprint Transaction, which is roughly 400 million. So that's a fairly significant one-off gain. It is one-off, so therefore I want to reiterate that. But it's very important in what it does to strengthen the group balance sheet and positions the continuing businesses for the way forward. And in the continuing businesses, there is modest profit for the half year, and we will be stripping out both the continuing and the discontinuing impact in this half year because that will be both Thank you very much. Important thing, especially for the bankers in the room who have supported us through some very, very tough commodity price environment in the last couple of years, and you'll see that the impact of this one-off gain reduces our gearing fairly significantly. More than halves are gearing to below one time, probably for the first time in many years. So therefore, it's a and many more. This is an extremely important sign of strength which positions the Group for the way forward. And the last part, the Board is pleased, has had a lot of deliberations on how do we prudently manage the balance sheet, giving the financial flexibility for the continuing businesses that still need work to do, deleveraging the balance sheet and also Thank you very much. Thank you very much. I've said some parts of this before in previous briefings ever since OFI was created, but just thought this would be a useful time since a significant part of the future is going to be on OFI and no pressure to myself or the OFI team. Thank you very much. A familiar slide, when we set it up, we had five global businesses strongly integrated with a strong global sourcing network and building on, in terms of value-added things, both single ingredients as well as solutions. Sustainability at our core, still remains at our core, significant pillar, the strong purpose of making, being the change for good food and a healthy future. So that The journey which started five years ago continues. And if anything, the synergistic benefits of integrating these businesses are even more apparent to us and we want to drive that even more at scale going forward. But after having set up, you know what's happened to the world. From the Ukraine war in 22, the energy crisis that followed, the inflationary Thank you very much. I want to probably say now we are clear that the world is not going to get better, which is not to say that it's gloom and doom, but it is to say that this is the new normal. And this impact of geopolitics, trade barriers off and on, enhanced volatility, interest rate environment being uncertain, high inflation, climate change, all that Israel is facing us every day and these all play to our strengths. It plays to our business model. We have had obviously both positive and negative impact in the last three, four years as we have contended with all of this together, but we have learned. We have learnt and built playbooks that we feel quite confident and are helping us out. So in 2022 and 2023, we were probably a bit reactive. There were a lot of things we had done, a lot of investments we had made, and we had to react to all these changes on the fly. But in 2024 and 2025, when we were hit with even more unprecedented times in commodity, we have handled that well. It has impacted our invested capital. Returns have always moved at a lag. But we have also learnt from that and you'll see now when prices are readjusting, we are maintaining our earnings as we are reducing our capital deployed and therefore enhancing returns, improving cash flows, etc. So we are showing through the cycles, if anything, so for me this graph was more to tell you that you have to look at this business not individually, In a half yearly terms or yearly terms or in one, over this five years, despite the up and down cycles, what we feel quite pleased about is that this business, this is the delivery of the business. It has had its ups and downs. Clearly EBIT, we grew EBIT by 12.5%, capital grew at slightly below. Transcription by CastingWords We have started showing that in 2025 and you will see that even more pronounced in the 26th first half that as the reverse happens, we have equally been able to maintain the lag in our favor in terms of holding on to our earnings with a dramatic reduction in both invested capital and therefore obviously interest and net returns. So I think it is important to see this business in the light of what We have in terms of capabilities, network, customer access, pricing power and the ability and the resilience and the agility to manage through these cycles and that's an important message I want to leave you with not to kind of really look at it in history. What is more important is that this is going to be significantly important for our future. Thank you very much. But what we are doing, we are doing better, doing it with more technology, with better processes, with far more expertise on the ground. So the global sourcing still remains the core for all our portfolio. But on top of the global sourcing, now we have very significant single ingredient portfolio and a product mix, whether it's in We have been investing steadily both organic and inorganic to really build a very strong over 120 manufacturing facilities. So I call this because when we present our results, it's always been and will remain as global sourcing and ingredient solutions. We have the global sourcing business which provides the base for the single ingredients as well as the solutions which are now significantly bigger in the last four or five years as we have built the private label business which is now very big. We have invested a lot. So initially we were building those businesses and we took the impact of the investment but the businesses were building. But now we are in the phase where that is already delivering and will deliver even more. So the solutions part of the business is still small. The channel solution which is the private label specifically and the QSR is beginning to grow and becoming far more substantive. and so therefore when we look at our business in the ingredient and solution segment, it is both the single ingredients as well as the solutions and that combination is growing and those are obviously higher return businesses and as we build the product mix and deeper access. Thank you very much. We are integrating this across all our product portfolio and now we really look at our business as source, process, deliver the raw material where that's required in a sustainable, traceable way. The single ingredient when that is required with the right innovation and application development and the category solution as it's required. Thank you very much. Rajeev Pandurang Kadam Rajeev Pandurang Aditya Venkataraman Krishnan So that customer base, which was very strong, is changing, and it's changing towards the new mix that OFI is building. And that's, again, a very important part of understanding, getting closer to the customers, getting closer to the consumption categories, and providing some real, seen as a supplier of choices, sustainable choices across this scope of customers. Transcription by CastingWords Aditya Venkataraman Krishnan and we have built on this. It was there physically. We are now building on this digitally. So therefore we are trying to do this at scale with better use of people, process and technology and that's again a very important. These things take time but we are doing this very deliberately. We are not trying to do new things but doing things differently in areas that matter and that's been the focus for over five, will remain the focus for over five. So yeah, that's kind of the message I want to leave you with. It's been volatile and it's not going to change. The consumer's behavior is changing. There was a lot of health and wellness trends, sustainability trends, convenience trends, they remain. But there's also consumer being seeking value. With what's happening across the world, price and value, and more than price, value is being sought. So therefore, one part of our private label thrust is also that we can cover the range of values for the range of consumers that are there. Climate sustainability is even more important. Sustainability is always important with the climate change and everything else. We need to deliver our impact in our parts of the value chain and offer choices for change for the customers. And we have to use technology and AI. I am not a great believer, and let me be very clear, AI is for real, but we are not chasing the AI dream. We are trying to use, get the right retool, reskill of people, put the right process in place, and then use appropriate technology, whether it's AI or digital or whatever you want to call it, doesn't really matter. But it's the appropriate use of people, process, and putting the right technology on top. It is not a technology game. It is business value driving that imperative. So that's been OFI's approach. We have simplified the business, simplified our structure, focused on cost leadership, and then hoping that what we have done in the last four years will reflect not only in the half-yearly results but also in the foundation where we want to really show accelerated growth going forward. So it segues into the H1 results and just a snapshot without repeating anything, H1 has been no different than the last four years. So we have a new war which nobody anticipated starting on February 28th. I say this with a smile but obviously a tragic situation for the world. Rajeev Pandurang Kadam Koko Coffee prices corrected but again with a strong LDNO looking now probably a strongest LDNO on record coming up again prices are up and likely to stay volatile and then there is all changes in regulations in EODR which impact some of our businesses which is again so what I mentioned nothing has changed there are different dynamics but through this We have stayed focused on ensuring that we can retain our earnings, we can improve our capital productivity, improve capital allocation, and that's what I hope you will be able to... And also an important element of managing risk and recovering... Thank you very much. And so what does it mean? So in terms of our half yearly results, just focusing on that, three or maybe four points I want to highlight on the slide. One, earnings at the EBIT level in Singapore dollar terms are down 5%, but I would treat that as down with commodity prices falling significantly lower, invested capital falling significantly lower. So this is Thank you very much. Thank you very much. and Rajeev Pandurang. Thank you very much. Thank you very much. In returns, while this is half yearly, we'll be looking at annualized returns at the end of the year. It will be fairly obvious that the returns will be improving and net earnings will be improving with interest rates remaining at this point of time stable. But on a lower capital deployed, that direction of travel in terms of EBIT to PBT conversion also should be quite clear. So those are the messages that you should take from this, not just the absolute numbers which are what they are, but the direction of travel in terms of maintaining EBIT, with a strong reduction in invested capital signaling improved net earnings, returns, and cash flow. So just a quick look at the global sourcing segment. This has remained resilient, and this is the point that I've made many times in the past. This is the bedrock, this is the foundation on top of which we're building an ingredient solutions business. And over these cycles, We saw this when the markets are going up. We saw this when the markets are coming down. The green coffee business or the cocoa bean origination or the cashew origination or the pepper origination or the dairy origination, these are parts of the businesses that have had to contend, even in this half, fairly significant both ups and downs in the market. Any of you tracking the cocoa or coffee or dairy markets know that they've gone both up and down fairly significantly, not by ordinary ranges. but the global sourcing business has navigated that so there is risk management trading and ensuring that the customer access that we have been able to grow a bit. while we have dropped capital by almost $1.7 billion because the biggest working capital is invested in this part of the business. So again, quite a positive story from our side, reiterating the business model going forward. A lot of the business and the standout performers this year have been green coffee as well as the cocoa, continuing to do that. So quite pleased with the results of this segment. and on the ingredient solution side which is like I said is a lot of the single ingredients in coffee, dairy, nuts, spices etc. but also the private label business which is especially in North America and Europe where the investments were made in the last few years has really grown and that's something which is very pleasing. So overall again here there is a bit more sharper fall in EBIT but again Thank you very much. There are some turnaround areas that we had signaled in the past, so North America spices, for instance, or the dairy in New Zealand, which is in the process of commissioning our second line right now. Those are still gestating, so the full value of those investments, the investments are here, but the full value of those investments are not there. So this... Thank you very much. We are showing tremendous resilience on the back of the last four years, even in this half, managing the volatility, growing our earnings, maintaining our earnings while improving our returns and reducing our capital deployment. We will remain committed to doing what we are doing strategically with the capital discipline, risk discipline, trading discipline that we have built into our model and that will remain. We are, I should have mentioned in the global sourcing, as you know, we have some farming assets and materially in almonds, but also in coffee, cocoa and spices. We are reviewing those and as part of the, because the kind of volatility in the farming assets, especially under the climate change, etc., is very high. And the variability on yield as well as price causes variability in the business. and so therefore that's something that we are reviewing that's again part of the capital discipline and capital allocation process and net of all this we feel quite comfortable maintaining our mid-term guidance of the focus is not on volume so we are looking at Thank you very much.

Thank you, Shekhar, and good morning to all of you. Before I jump into the H1 results, I thought it would be good for all of us to align on what is OGH really. So OGH or OLAM Global Holdco is the holding company for all the non-core businesses of the OLAM Group with the sole objective of responsibly divesting them over time. So that's really the mandate with which I've taken over as the CEO of OGH. Now within OGH, we have four key assets which are continuing with us. The first one is OPG or Olam Palm Gabon. This is a palm plantation in Gabon with about 63,000 hectares of which 50,000 hectares are operational. Then we have Olam Rubber Gabon, which again is a rubber plantation in Gabon with about 11,000 hectares operational. Both of these assets are a 60-40 with the government of Gabon. The third big asset we have is Rasmalco. This is a dairy business in Russia and we own 100% of this. And then we have Caraway, which is a FMCG business primarily in Nigeria and Ghana. We own 75% of this. 25% is with Sanyo, which, as you know, is a Japanese conglomerate. Apart from this, we do have certain smaller assets. So we have a ports and logistics business, which is Arise P&L, that you will see on the right, which has two ports in Gabon, one in Ivory Coast. We have Mantra, which is a logistics business, again, in Ivory Coast, and a couple of other smaller businesses. The focus is going to be on these four large assets going forward. As Shekhar mentioned, some exits have already happened from this portfolio, Mindspin being the latest one and the big one. Apart from that, we've also exited Jeeva and Terrascope. Jeeva was a shutdown whereas Terrascope was a million dollar exit. Arise P&L, this is something that's been spoken about before as well. This is a transaction which has been signed but not closed yet. So that's really what the OJH portfolio looks like and what we'll be focusing on. Moving on to the H1 results, if I start with the left side, it looks like a massive drop from 156 million to minus 55. However, I just want to call out that in the 156 million that you see for H1 2025, there's 187 million of FX gains. So if I strip that out, in H1 2025, we would be at minus 31. The drop this year in H1 has been from minus 31 to minus 55, which is about $24 million. This is largely on account of OPG, ORG, and Rasmalco. In ORG's case, it is just a mark-to-market losses, which will reverse during the course of the year, so nothing to worry. In OPG, our export sales have been lower than expected. And in Rasmal Co, while the operations are good, the volumes are growing. It's primarily because of the milk price. The milk price this year has been far lower than what it was last year. So from the mid-40s, right now we're trending at about mid-30s. So that's really the reason why we see that drop of 24 million on the EBIT side. If I come to invested capital, it looks again, once again, it looks like a jump of about 272 million. But a large part of this is on account of the fair valuation of the put and call option for the remaining 18% stake of Olam Agri. So it is not really linked to the OGH businesses that I spoke about. If I exclude that, the actual increase is only about 35 million, which is roughly a percent, or a little over a percent. This also, if I just take this 35 and split it, a large part of it comes from the mine sprint. So mine sprint used to have a negative working capital, which has now been reversed, so we don't get that benefit. A small part of it is because of an inventory build-up in OPG. As I mentioned, the export sales were lower than expected, so there's been some inventory build-up. So really, on the invested capital, if I exclude the OLAM Agri piece, it's largely where it is. Going forward, unlike Shekhar, I don't have a detailed strategy. I think because my plan is very clear, my mandate is to responsibly divest all of these assets over time and unlock value for the shareholders. While we do that, we will continue working on the value creation plans for these assets, focusing on the four key ones that I described earlier. So that's really from me. I'll hand over now to Venkar to take you through the group results.

Thank you, Gautam. Good morning, all of you. I'm pleased to be amongst you today to discuss the OLAM Group's first half 2026 performance highlights. I will, in the next few slides, take you through first the performance of the continuing businesses in line with the theme that we have discussed. Rajeev Pandurang Kadam Rajeev Pandurang Kadam Subramaniam, Rajeev Pandurang Kadam Clearly, revenues are down by far more, from $15.3 billion in the first half of 2025 to $12.5 billion. This clearly reflects the softening trend that we have seen in cocoa and coffee prices, which Shekhar had described to you earlier. Thank you very much. So that clearly, therefore, reflects in all of the other parameters which we discussed, primarily in terms of the balance sheet as well as the returns. When we look then at the PATMI numbers, reported PATMI, which is SING$55.6 million, and operational PATMI, which is at SING$64.4 million. You would see numbers which are negative 66.1 from a comparison standpoint and negative 61.5% from a comparison standpoint. But I would like to just mention that they are markedly better when we adjust for the One of Forex gains that we had in the first half of 2025. We will go through the numbers when I take you through the PATMI and operational PATMI numbers in detail in the next few slides. EBIT is a very similar picture. While you see the reported EBIT being 34.2% lower, Thank you very much. Clearly, first half of 2026 for the continuing BUs is better than the first half of 2025. In terms of free cash flow to equity and gearing, clearly, as Shekhar mentioned in the highlights, they are significantly better, and they have a common set of factors which drive them, one related to the reorganization, which is the sale of agri and mine sprint, and what they bring to the table is cash, They bring gains and along with that the base equity they were carrying. And when you combine that, there is a Subramaniam, Rajeev Pandurang Kadam to the better FCFE and gearing that we see in the first half of 2026 versus first half of 2025. And these parameters we look at in more detail in the next few slides. We'll start with sales volumes. As I mentioned, they're down 10% to 2 million tons from 2.2 million tons in the first half of last year. As you can see, OFI is a marginal drop, while a bulk of this is being driven by OGH and primarily within OGH. It is Jeeva which is driving the drop in volumes. And Jeeva was part of Nupur Ventures as most of you would recollect, most of you are familiar with our journey, would recollect that it was part of Nupur Ventures. We closed Jeeva in the second half of 2025, therefore it still appears in the first half 2025 numbers and it is not part of the first half 2026 numbers. And that's clearly a business, a digital pharma services network Thank you very much. Moving on, when we look at the co-operating profit or EBIT, the reported numbers are lower by 34.2% from the comparable period last year. But clearly the one that we would focus on are the recurring items which is OFI which is down by 26 million and OGH which is down by 24 million. The drop in OFI, as again Shekhar mentioned, I would like to highlight, we believe that the drop of 26 million has to be looked in conjunction with the significant reduction in invested capital that we have seen in OFI, which essentially means that the margins are better. Transcription by CastingWords Operating Profit. But as long as we ensure that the returns and margins are better and we have expanded margins and expanded returns, that is the right direction for us. And that's really what we are focusing on in OFI. In the case of OGH, there's a marginal 24 million drop and Gautam has taken you through that. The OGH non-recruiting item essentially is the one of forex gains that we had in the first half of 2025. So essentially, if we strip out the one-off non-recurring gain that we had in the first half of 2025, it would be a 50 million drop that we see, and roughly about 10% versus the 34.2% drop. The focus for us again, I would like to repeat, is on continuing BU's and within continuing BU's the recurring businesses, which is OFI and within OGH the recurring parts of OGH. Moving on from the operational profit level to the bottom line, operational PATMI is positive $64.4 million. Last year, the reported operational PATMI was $167 million. and essentially the elements which are contributing to this decrease. The primary driver for this is the non-recurring element from OGH which is the 187 million forex gain. But if we start focusing on the EBIT recurring which is down by 50 and then we focus on what's happened to net finance costs for example which is the representative of the drop in invested capital in this whole waterfall. There is a drop in EBIT but that is more than offset by the reduction in finance costs and therefore the kind of bump up you have when you convert the operating profit to your bottom line. and that's again another parameter that more and more focus will be given to within the OLAM Group. We want better operational profit, we want growth in operational profit, at the same time we want to be clearly focused on bringing their operational profit down to the bottom line and have a better conversion ratio. And this is the first half that we are seeing that being delivered. Obviously, cocoa coffee prices being down has helped in that. And the proof of the pudding is in the numbers that we are seeing here of a minus 50 and a plus 136. Patmi from Continuing Operations reported 164 last year in the first half versus 56 this year. It is a similar comparison. The comparison, if we strip off the 187 million of non-recurring, will be a positive or an increase of 79 million Sing dollars. So again, the focus is continuing BUs and recurring results. We'll now move on to bringing it all together. When I say that, I mean we've focused on the continuing businesses, we've understood the performance, we've brought it together from a group perspective. What we'll also do is, clearly the reorganisation is also an important part of what will affect our financial statements in India. It has been a big part of what the financial results for the first half of 2026 reflect. And therefore, we will start with a quick summary of what's happened in the first half of 2026. These are highlights which Shekhar has taken you through as well, but this will be more in the context of how it affects or impacts the presentation of her financial statements. Well, I agree. As we know, we have completed the sale of 44.58%, but we still hold 18.2%. So what it means is, in terms of financial results, we have a gain, and that gain moves into discontinued. and we also have a retained stake of 18.2% which is now classified as held for sale. So that is Olam Agri in a nutshell in terms of how it appears in our financial results. The other thing I have to mention about Olam Agri is also the first four months of 2026 has been consolidated into our P&L because the sale of Olam Agri happened and many more. So these are the three elements that Olam Agri will bring into our financial results. MindSprint, we have sold 100% interest to Wipro. So Mindsprint was sold in mid-May. So clearly for Mindsprint as well, there is a P&L effect that we have for this first half and for the full year, which is roughly the four months that we have held Mindsprint in 2026. And Mindsprint was also done at a very significant gain to our book value. So that again flows through into our P&L. Telescope. It's a small transaction, but I think in the context of not numbers, but if we look at our portfolio and we start focusing on how we have simplified our portfolio, made it less complex. If I start looking at MindSprint moving out, which is again something that we feel as non-core IT services should be delivered by the best-in-class service providers to us, we focus on what we do best. That is what we have done with MindSprint, sold it to Wipro. What we have done with Nupur Ventures is Jeeva and Terrascope, which are the two main vehicles that we had under Nupur. They have now been either closed or sold, which means the Nupur business that we had and MindSprint, both of them are no longer part of the portfolio. And that makes it far more leaner and more focused. And in terms of comparability, clearly I've explained for each of them how the financial results are impacted. So if we look at the consolidated group results, including the Olam Agri, MindSprint, and Terrascope numbers, I will just focus on discontinued operations. And from a P&L standpoint, they start affecting the financial results from a PAT level. Till that point, all the numbers that you see, be it revenues, EBITDA or EBIT, are all continuing businesses related. PATMI is where you'll start seeing the impact of the Ulam Agri, Mindsprint and Terrascope businesses. We discussed... The continuing operations PACME of 55.6 million, operational PACME of 64.4 that we've discussed previously. In terms of the discontinued operations, there is a 1.85 billion that you will see as an accretion to this P&L. and a large part of this, which is the last row here, is the gain that we have from Olam Agri and Mindsprint sales. So that's 1.75 million and the rest of it is essentially the four months numbers that we have for Olam Agri and Mindsprint. The focus is clearly the continuing operations, but we also realize that for this first half this year, you're going to see a significant number in the discontinued operations line, and we want to help everyone understand better how we are performing on a continuing basis, and what kind of an impact we are able to make, and how we are able to add value, including the three objectives we set for ourselves in the Decapitalize OFI and through divestments and OGH distribute special dividends to shareholders. So we want to look at the discontinued operations from that perspective and show the kind of impact we've been able to deliver in this first half as well and going forward. So that will be the focus when we talk about discontinued operations going forward. Now, coming to net gearing, the reason why we discuss the gearing and the cash flow numbers on a group consolidated basis is because they're all fungible. At this level, continuing and discontinued are all part of the same pool. Ultimately, this all comes into O-Lan Group's balance sheet and they become one. So while the P&L is an isolated period event, The impact of what we have done through the reorganization, the sale of Olam Agri and MindSprint has a lasting impact on the Olam Group and that is why you see a far more strengthened balance sheet which we will carry forward, a lower gearing which we will carry forward and which is why the presentation of this consolidated level net gearing and FCFE are after we look at continuing as well as discontinued because the impact of discontinued is really reflected in what we see here along with the working capital impacts we see in OFI. So it's a combination of the operational effect, the beneficial operational effect we have seen in the first half in terms of reduction of invested capital and the beneficial impact we have seen from the reorganization milestones that we have achieved. So it's a combined effect that we have and as Shikha has discussed previously, the net gearing is below 1 at 0.93 times and I can tell you that Olam Group In terms of free cash flow, it's pretty strong and positive at 1.7 billion. Again, it has a lot of elements in there, but the big one which stands out is, of course, changes in working capital. That's clearly a big driver, and that is an operational element, and we will continue to focus on capital efficiency and try to deliver that capital efficiency and to bring in... Thank you very much. Thank you very much. Changes in working capital, for example, is a continuing element. So those capital efficiency initiatives will help us focus more and more on delivering positive free cash flows going forward as well. And finally, a big thanks to, of course, all our banking partners. We do have access to diversified pools of capital. We are fortunate to have that with our long-term partners. And the numbers that you see here are slightly different from what you would have seen previously. These are numbers which are, again, continuing businesses only. They are OFI plus OGH only. Olam Agri's banking lines and... Debt Facilities etc. are not part of this equation. This is a continuing business number and clearly this is the group that's going to continue and go forward which is why these numbers are quite relevant for all of you here. In terms of liquidity, Thank you very much. Thank you very much. and I'll then hand over to Shekhar to take you through the key takeaways.

Okay, so let's bring it back together. The messages are clear, so I won't repeat it. It is about the continuing businesses going forward. It is about building OFI, accelerating the growth, investing for the future. It is about still a job to be done in responsible divestment of the remaining assets in OGH. And Thank you Shekhar, Gautam and KV.

Question time. I request you to pick up the microphone from one of our colleagues behind and please state your name and the firm you represent. Yes, Alfred Bloomberg. Thank you.

Hey, good morning. Nice to see you. The company said in the statement, I noticed that there's also highlighted in the slides that the company is evaluating the strategic role of certain upstream assets. What does it mean? Are you considering more sales of your assets? And element assets is also highlighted. Is that what you are looking at? I mean, I understand that most of such orchards is in Australia, if I'm not wrong. Is that the ones you are, you know, evaluating?

Yeah, so we have assets in Australia, like you said, in almonds. We have assets in US also, as well as in cocoa coffee and spices. We have plantations in Asia and Africa also. So there is a mix of farming assets. And just to re-clarify what I said, as the business of OFI has grown, we feel that the need for owning the farming is probably not as relevant. That doesn't mean we don't want to own farming, but the need for that is less relevant. So we are taking a re-look at all these assets. We're not necessarily going to exit all the assets together or overnight. We will see which part of these assets... So it's something that we are evaluating. Are there any changes? Obviously we'll announce it at that point in time.

Thank you. Hussaini? May Bank?

Thank you. Hossein Saifi from MyBank. Three questions and one for you, each one for you, gentlemen. So first on the OFI, if I see the sourcing business where the EBIT has been positive, but at the same time for the ingredients and solution, it was the other way around. So just trying to understand why the divergence and is there a room that The positive impact on the EBIT side will flow through on the ingredient side with a lag. This is question number one. Second question for you, Adva, Gautam, is that those assets on the left-hand side are all up for sale, up for divestment. So if you can take us through what are the key challenges and opportunities Thank you very much. I understand that the proceeds from the sale of MindSprint and Arise are put aside for a part of it is put aside for special dividends and you did pay 6 cents but I just wanted to understand that is there room for more because the overall proceeds from that is significantly higher. Any progress on by when we expect this NIS P&L to close? Thank you.

Okay, so maybe I will take the first question and part of the second question, third question and then hand over to Gautam and if KB wants to add on anything. So on OFI, I think your question is valid, but I don't think there are two conclusions you're drawing that don't draw any conclusions from just one half-yearly period. That's the first point I would make. Because there are timing differences, shipment differences, seasonal differences, and obviously market moves and everything else that's happened. When you look at it from an overall year perspective, Transcription by ESO. Translation by — We think that there will be a direction of travel that you should really look at for that business is that we will be able to maintain EBIT and reduce capital. That's kind of where that business will be because you're not going to be pumping in more volumes. But there are some seasonal impacts of what will happen between H1 and H2 that will have some impact always. But when you look at the full year trend over the last four years and including this year, you will see that kind of a trend there. So we feel quite confident that we can maintain the margins here as EBIT while reducing capital and therefore thereby improving returns. On the ingredient solution, there are a few things which is not so straight line because it's a mix of a lot of single ingredients where we are in different stages of investment and gestation and where full value of changes to product mix and margin improvements occur. Aditya Venkataraman Krishnan, and there are a lot of single ingredients some of which are gestating which will probably where EBIT growth will happen but investments might not be required and then there is areas where we are investing more in that business where we will be seeing increase in capital as well as increase in EBIT so that's in a little bit of flux but that's a direction of travel that's a more important direction of travel for the company where Aditya Venkataraman Krishnan The change in the portfolio shape between GS and IS, with IS growing, GS maintaining, but maintaining returns being a very important part of the growth that IS is doing, that's the way you should look at it. So I would urge that don't look at just a half-yearly. It's a good half-year from our perspective, but this half-year is not the full story. So that's, I think, the part of the O5 question. On the dividend, there are two questions that you, or two aspects that I'd like to highlight. First, when the board is evaluating this, we are looking, taking a little bit of a prudent look at the overall requirements of the group and not thinking about this on an asset-by-asset basis, right? Because that's the way we have to look at ensuring that there is an overall aspect, like KV was saying, For the rest of the group, we have to look at leverage, we have to look at financial requirements, financial flexibility in the conditions that we are underway and then see how we can progressively give the dividends. All the divestments eventually, when done, it will go back to the shareholders. There's no question about that. But the timing of that has to be done with prudence, has to be done with some judgment. So the board is exercising that prudence in saying that while we have completed mind sprint and you're right that the net proceeds from that is higher than what we are giving as special dividends, but we are taking that in the overall context. and the part that you alluded to Arise has been announced but not completed. So there the cash flow has also not accrued. But again, we would strongly urge you and we have said this before that we will progressively give back net divestment proceeds after taking care of any financial requirements of the company and that will be quite transparent but we should not look at it asset by asset.

It's not an asset by asset outlook for special dividends here. It's a holistic view. Anything that's surplus that remains in OGH will finally be in the hands of shareholders. It's a matter of timing.

Thanks for the question, Saini. So since you mentioned for the four assets that we've listed as key assets, you want to know the short and medium term plan. As I mentioned during my presentation, there are two parts to it. So while we're looking at responsibly divesting these assets and exploring options, in the short term, while we hold these assets, we're also looking at creating value there. Because we want these assets to be absolutely divestment ready. Not to say they're not today, but we continue to create value and we have plans for each of those. But I guess the interest is more on the divestment side, so I'll start from there. So if I talk about asset by asset, let's start with Carraway. Now, Carraway is an FMCG business in Nigeria and Ghana. In Ghana, we operate in two categories, which is culinary and biscuits, and we are market leaders in both. In Nigeria, we are operating in six categories, and we are between number two and number four across all the six categories. So these are very attractive assets. Second, these are clearly EBITDA positive in both the countries. So from an asset attractiveness standpoint, for someone who wants exposure to an FMCG business in Nigeria and Ghana, I think this is an attractive asset. We have, in terms of opportunities, for now we are not launching any formal process because like I said, we want to work on these assets before we launch a formal process. But we keep getting incoming interest on this asset. So really, this is not an asset that I worry too much about. We will... Divest it at the right time to the right buyer. Because like we said, for none of the assets, we are in a fire sale kind of a situation. We can hold on. We will wait for the right buyer at the right price and responsibly divest this asset. But to be honest, I don't really worry too much about this. Coming to Rasmalco, I think this is a fantastic dairy business in Russia. We do It's doing really well for us. In fact, to the extent we are opening a new dairy farm there. So we are investing more behind this business. It does very good margins. It's run very, very efficiently. So we are very happy with the operational performance of the business. But for this asset, as you can appreciate, there is a geopolitical risk. There's a war going on. Despite the war, we are looking at some divestment options. So if we get the right price despite the war, we will be open to divestment. However, if we are getting discounted very heavily because of the situation there, we may decide to hold on for a bit. Because like I said, this is a great asset. I would not want to sell it at a huge discount because that will not be an optimal outcome for the shareholders. So we want to be very prudent here. We'll see how the situation plays out and then take a call. But operationally, I think it's a fantastic asset. The third big asset is your... Let's take OPG, ORG together, because it's a similar risk. Now, OPG, ORG, I think they're doing well as businesses. While this year, I mentioned OPG export sales are down, but that's very temporary. But overall, the businesses are doing... from an operational standpoint. However, for these two assets, one, the buyer universe is usually limited because these are plantation assets compared to an FMCG or a dairy business. Here, the buyer universe, by the very nature of the business, is limited. The second and more important factor is the country risk we have here. Gabon, as you know, went through a coup a couple of years back. So since then, the investor appetite went down a bit. So in this asset, we'll have to be a little more creative. We will look at what we can do in terms of exit. So it's not a very straightforward exit, I would say. However, there are buyers that we have in mind that we can speak to and see what we can do with this. So from an opportunity standpoint, Carraway, I think, is a pretty straightforward asset, great asset. Ras Malko, great asset, it's more a geopolitical risk situation. Gabon, a limited buyer universe and country risk. However, we do have a plan in mind and we'll see how best we can progress on this. Does that answer your question?

Thank you.

And Arise, of course, I'd already mentioned, it's in play. So it's already a signed deal. We're just waiting for the closing.

Thank you so much for your sharing. I'm Benicia from the Business Times. So I have three questions. Firstly, I think in the balance sheet, I noticed that the derivative financial instruments grew from around $955 million to $2 billion despite the lower cocoa and coffee prices. So do you mind elaborating a bit more on the reason for this increase? Then secondly, given that investors are now able to focus more on OFI's performance, what are some of the key challenges and opportunities that you see in the market for OFI specifically? And lastly, for the OGH businesses like the remaining ones, are they currently able to sustain their own cash flows or is the group still needing to inject capital into them? Thank you.

Can you just repeat the second question? I got the first and third. The challenges to the OFI, there was something...

Yes, basically the challenges and opportunities that you see for OFI. Thank you.

So I think the derivatives cannot be looked at just separately and are also not linked to prices. So the derivatives are a hedge in our books to our physical. So depending on how much physicals we are carrying, the derivatives will be an offset to that. So therefore, you have to look at that not in isolation, going up or going down is not in itself very meaningful or material in terms of direction. The second part, which is probably a larger question, opportunities and challenges, I talked about that. I think if you just look at it from the market, there is the volatility in various aspects of it, climate change and so on, regulatory barriers and so on and so forth, are all looking like challenges. But the way I look at it is if managed well, Rajeev Pandurang Kadam It's two sides of the same coin. We can look at this and get paralyzed and say we'll stop doing our business. But I look at it and say yes, this business needs to be managed very carefully and diligently and more discipline is required actually. But then we can offer something which is quite unique. So that's where I look at the mix of that. The third question I'll probably... So the cash flow requirements for the OGH, are the businesses cash flow positive?

I think that's a very straightforward answer. Yes, they are all self-sustaining. Lastly, we don't have to pump money from the center.

Thank you.

And that's a big impact of the discontinuing operations, that with that, OGH has not only been able to deleverage, but also becomes more self-sustaining, although, of course, we just finished the Tranche 1. So by the end of Tranche 2, that's an important part of ensuring that they make operating profit and that gets converted into earnings because the burden of interest is not there.

And clearly, over the last... Two, three years, we focused on making them self-sufficient in terms of cash requirements. And what that does is gives you the flexibility. As Gautam was alluding to, we're not in a fire sale mode. We have time. We want to get the best value and find the best buyer. So ensuring that they're self-sufficient and running them from that perspective as a very fundamental criteria allows us to do all of that.

Thank you. If there are no questions from the floor, I will take some questions from the webcast. The questions are around the progress in the reorganisation plan. Two aspects. The first is on OFI, Value Unlocked. Is there any plan for approaching the public market for an IPO or a private sale?

This is a question that comes up every half year and I give the same answer. So we will keep all our strategic options. OFI is a very valuable long-term business. We have invested in that. We are going to continue to invest in that. and we will keep all our strategic options. We are in no hurry. The shareholders are in no hurry to exit or unlock value from that business. We want to maximize and optimize value from the business. So if we find the right partners at an appropriate time, we might consider. But at this point of time, The business is in strong hands with all the things that we have done with the reorganization plan. The business and the group and the current shareholders are even in a better position to support that business. So there is no crying need for us to go anywhere to raise capital. And we would like to extract full value from this business so that at the appropriate time we will think about capital raise.

The point I would like to add is in terms of access to the value that OFI will accrete to a type and being with the same set of shareholders as well. We are listed on Singapore Stock Exchange and that clearly is an instrument that shareholders can access. As OFI delivers on the plans that she had outlined, the value should be, that's what our expectation is, should be reflected in the share price. And that provides a venue for shareholders to monetize as well if they decide to do so.

Another related question on creating shareholder value is the potential share buyback which Olam Group has bought back shares in the past. What would be the plan going forward?

Again, share buyback is an option that the boards will always consider and if that's the best use of cash, we will do that. At this point of time, I think with all... So that remains and that will remain an option. But there's no imminent... It's not a strategy in itself. And that will be determined at appropriate points of time.

The next question is on the operations of OFI. With the recapitalization of OFI last year and also with the current gearing ratio that the group is now at, what is the target gearing overall for OFI as an operating group and also for the group as a whole?

I think this is something that we will be debating at the board level. There's a lot which is happening. and the resultant impact is that we are at a group level at below one time. How we look at the overall gearing structure going forward is still something that will have to be determined. So I don't want to kind of give a premature answer. But in the past, what we have said, O5 gearing always has to be looked at both the gross as well as the RMI adjusted gearing. And we have always looked at 1.5 times gearing at the O5 level, but Adjusted for RMI below 0.5. So that would be a direction of travel. I think we'll be somewhere in that ballpark. And at the group level, after the entire aspects of the rest of the deleveraging finishes, tranche 2 finishes, there's a bulk of things to happen. That might change the structure of leverage at the group level, which is still something that will have to pan out over the coming years. So I don't think we should stick to any fixed guidance on gearing and that would not be appropriate in this stage of evolution.

Thank you. I have two questions from Siti. On Super El Nino, what are the challenges and opportunities do you see specifically for OFI? And the second question is, what are the major KPIs of this new management team in the coming 6 to 12 months?

Okay, so Super Alino is looking more likely as obviously what is now talked about quite it has different impact on different parts of the businesses and geographies so therefore It is reflected in the current uncertainty and volatility in the markets in terms of pricing. For instance, in coffee, it has probably greater impact than the Robusta with risks in Vietnam, in Asia. In cocoa, it has probably greater impact than West Africa. So it's not a single-size-fits-all impact of El Nino in different geographies. It's different. The way I look at it is that it is not something any one of us can do. Transcription by CastingWords Thank you very much. The second question is about KPIs. I don't think the KPIs change. The business is what it is. Our whole reorganization plan has been underway for a while and we have been focused on that. What we have been doing in OFI doesn't change. It will get accelerated in a form and manner so I don't see... Aditya Renjan, Rajeev Pandurang Kadam Transcription by CastingWords that is getting established and Gautam is new but he is already a veteran with the experience coming from and his KPIs he was absolutely clear his KPIs is to ensure that these businesses are run well and divested responsibly so I think but none of that is new they are not new KPIs they are just KPIs that we have been preparing for and therefore are able to move into as we get into this next stage of evolution

That was a good question and thank you for all your questions. Unless Kivi and Gautam, you have to...

I was just going to say on a light note, Gautam is already delivering on some of the KPIs. He's travelled to Nigeria, Ghana, Gabon, which is essentially what everyone I might typically has done over the last 35, 37 years now as a journey. So he's already started on that journey and a large part of the KPI on that front he's already met.

All right, thank you so much, and thank you to the speakers, presenters, and your time for making here. And we'll see you in six months at least. Thank you very much.

Thank you all. Thank you. I appreciate your time.