Olam Group Limited

Good morning and a warm welcome to Olam Group's annual briefing for the results ended the year 2025. Happy Chinese New Year to all of you. Our full year results delivered at this time of the year always marks the beginning of the auspicious year. I'm Hang Hong, the Olam Group Investor Relations, and it's always my pleasure to host this briefing. along with our senior leadership team at OLAM, led by, on my right, OLAM co-founder and group CEO, Sunny Verghese. To his right, CEO of OFI, OLAM Food Ingredients, A. Shekhar. And our group CFO, Anne Mutukuma, at the end of the table. Like before, Mutu will deliver a presentation of our group consolidated financials for the year. Shekhar and Sunny will present the segmentals of the respective operating groups, Shekhar for FI and Sunny as CEO of Olam Agri for the Olam Agri results. Sunny will also cover the same for the remaining Olam groups before moving on to our reorganisation plan update and also telling us what he thinks of the future outlook and prospects for the group. And before we begin, Please read the cautionary note on forward-looking statements carefully. I thank you for your attention. I'll hand over the voice to Muthu.

Thank you, Hangung. Good morning and a warm welcome once again to all of you for our 2025 Annual Results Briefing. I would like to start with wishing you all gongsi fachai in the year of horse, so we all have an auspicious beginning. As you all know, there is a changes to the presentation because of the imminent demerger of OLAM Agri, which we had announced as a sale of 44.53% to SALIC, a subsidiary of PIF, the sovereign wealth fund of the Kingdom of Saudi Arabia. So the presentation on two slides. As for accounting standards, we will be presenting combination of OFI and the remaining OLAM group. But for all of us to understand the real business as a combined OLAM group, we would be taking the liberty of presenting as one consolidated group, including OLAM Agri. So the first slide, as you are seeing, is excluding OLAM Agri presentation. We are at 4.4 million tons of full volume for the full year 2025, with roughly $30 billion of revenue, up 29%. And as you all know, we had historical high prices of the commodity that is in the OFI portfolio, particularly cocoa and coffee. And that has resulted in a significant increase in revenue to $30 billion, converting into an EBIT of $1.26 billion and a PATMI of $444 million. More importantly, The important metric that we track and report is operational PATMI up 136% year-on-year at $511 million, and a huge swing to the positive side on the free cash flow to equity, reflecting the normalization of prices in the OFI portfolio, resulting in significant reduction in usage of working capital and automatically resulting in a positive free cash flow to equity of roughly $360 million, in the year ending 2025, and that has resulted in a significant reduction in gearing, down from 2.79 times in 2024 to 1.87 times. Now, with combined Olam Group, including Olam Agri, you can see that the volume is an overall of 58 million tons, up 17%, resulting in a combined Olam Group revenue of $67 billion, up 19%, and an EBIT from a 1.26 billion excluding Olam Agri, resulting in a 2.2 billion EBIT up 13%. PATMI and operational PATMI remaining the same because regardless of however we see as discontinuing operations or combined operations, the resulting PATMI is $511 million up 136% year-on-year and gearing with Olam Agri down from 2.79 times to 2.69 times. So no surprise here on the volumes, 92% of the 58 million tonnes has been contributed by Olam Agri, the remaining 6% from OFI and roughly 2% by the remaining Olam Group. However, as you all know, because of historical high prices in the OFI portfolio of commodities, that has resulted in a significant contribution in the revenue of OFI at 42.5%, with Olam Agri contributing 56% and the balance roughly 2% from the remaining Olam Group. In terms of the $2.2 billion of EBIT, 42% came from OLAM Agri, 49% came from OFI, and the balance 9% from the remaining OLAM group. As you all will notice, the remaining OLAM group has performed very strongly during the year. We had talked about it in the first half results that we presented in August of 2025, and that trend has continued for the remaining OLAM group. contributing to 9% of the total EBIT of $2.2 billion. We have a $25.5 billion of total invested capital, roughly 61% coming from OFI, 30% contributed by Olam Agri, and the balance roughly 9% from the remaining Olam Group. This is again a detailed presentation of the results excluding Olam Agri. You can see that a PACME of $444 million is out of which $170 million contributed from the continuing operation comprising of OFI and remaining OLAM group and roughly $274 million being contributed by OLAM-AGV. However, the operational PATMI is up from $511 million compared to $216 million year-on-year, which is represented to appropriately reflect the Apple-to-Apple comparison contributed by the continuing operation of $224 million and the balance $287 million contributed by discontinuing operations. As I had highlighted earlier, you can see that in the continuing operations, it was a negative results last year of $105 million has swung to a positive of $223 million, mainly because we had strong results contributed by the remaining Olam Group businesses. Volume increased from roughly 49 million tons to 58 million tons, primarily from Olam Agri of 8.6 million tons increase in the cash trading business, primarily contributed by grains, oil seeds and edible oil trading. In terms of overall core operating profits, which is EBIT, it grew from $1.9 billion to $2.2 billion. As I had highlighted earlier, it was a swing of $350 million year on year, by the remaining OLAM group businesses. In terms of operational PATMI we talked about a significant increase from 216 million dollars last year, a growth of 295 million dollars year on year resulting in a overall operational PATMI for the group at 511 million dollars contributed by strong operating growth of 255 million dollars from the EBIT growth We had less exceptional items during the year that contributed to $63 million of profits, as well as lower finance cost and the result of lower interest rates and resulting in a lower interest cost of $53 million. Overall, moving from $216 million to $511 million of operational pathway. In terms of invested capital, we talked about a marginal reduction at $25.48 billion and primarily because of lower working capital utilization of OFI, resulting in the normalization of commodity prices, especially cocoa and coffee during the year of 2025. Gearing, accordingly, excluding Olam Agri, dropped significantly from 2.79 times to 1.87 times, nominal net debt to equity. However, more importantly, what we track and report, adjusting for RMI and secured receivables, dropped from 0.68 times to 0.55 times and including Olam Agri on a combined basis adjusted for RMI the net debt to equity was at 0.58 times. This resulted in a significant swing in the free cash flow to equity as I had highlighted earlier we had a negative free cash flow to equity Last year, primarily because of significant usage of working capital, particularly in OFI, and with the normalization of commodity prices in the OFI portfolio, had resulted in a positive free cash flow to equity of 360 million, primarily a swing of $6.3 billion year on year. Needless to add, some of the bankers are here and who are hearing us, thank you once again for your continued support. We have sufficient liquidity with diversified pools of capital with a healthy headroom of $7.6 billion over the total available liquidity of $15.5 billion, contributed by roughly $2.2 billion of cash, $8.8 billion of readily marketable inventories, roughly half a billion dollars of secured receivables, and more importantly, $4 billion of unutilized bank lines. With that, I will hand over to Shekhar for presenting the OFI segmental results. Thank you.

Thank you, Bhutu, and a warm welcome from my side too, and a happy Lunar New Year to you. I hope it is successful, healthy, happy, and successful for all of us. So, as always, I'll kick off the O5 segmental results. This is a slide all of you have seen for a long time, but I'm always very happy to share it at the start of every presentation, because this is the strategy that we embarked on when we created O5 five years ago and now six years ago. And we have stayed true to the strategy. The market has done many things. The world has gone through many things. All of us are aware of that. But we have stayed focused on backing the strategy, investing behind it in brick and mortar, greenfield, as well as acquisitions. But more importantly, creating the capabilities and deepening our customer and supplier franchise, which is really what finally matters. And even this year, if I look at the full 25 years, has demonstrated the resilience of this model, the validity of this model, and the deepening of our relationships under what, I mean, the word unprecedented has been used many times. I've used it myself. But it has been quite a unique experience. set of circumstances in the marketplace, not just the commodity prices that specifically impacted two of OFI's largest platforms, but all the other macroeconomic uncertainty, the tariff pressures, which caused significant and still a moving goalpost for all businesses. And it is the integrated scale, size, and footprint that OFI has built over many decades, not just at the start of OFI, but many decades. And the things that we have done over the last six years to build on top of that, getting closer to our customers, offering them even more varied capabilities from innovation to solutioning to private label, which was kind of a start, a few experiments that we started with in 2020, In 25, I'm pleased to say that that business across nuts, spices, and coffee has really come to age. We are sizable in terms of our retailer presence, in terms of the segments and categories that we play in, in North America, Europe, and Asia. So it is now a very significant part. So it was therefore a reinstatement of what we said we did. And 2025 was really again a year of continuing to do that under fairly tough circumstances. So when you look at the results in terms of EBIT and overall results, I'll come to the segment a little bit. The overall results are broadly flat for EBIT, but this is on lower volumes. Last year was not about increasing volumes. It was about really using capital in a very calculated, deliberate, disciplined way. and ensuring that we can meet our customer contracts and under prices that were changing up and down and with amplitudes that have not been seen before by the industry and with a frequency of up and down moves that are also quite remarkable. So last year, COCO hit a high of $12,000, ended the year at around $4,000. In the last eight weeks, it's half of that. Coffee started the year at below $3, went up to well above $4, almost $4.50, ended the year at $3.50. In the last eight weeks, it's gone up to $3.80 and is trading at $2.80 today, a dollar off the highs in the last eight weeks. So you're not talking here about small moves. We have seen that over 35 years and we always manage commodity pricing. That is a big part of our capacity and capability that we have. But this has been tested. And so in that situation for us to be able to execute our contracts, ensure that the pricing is passed on to our customer in a fair, transparent and a reasonable way and ensuring that we can use capital in a disciplined form and manner to ensure that we can maintain our returns which were tested during this period. That has really been the focus for the business. And beyond that, what is hidden in these numbers is the big changes that have happened in, like I mentioned about private label, but also in our food and beverage solution, which is a relatively new segment, but we are moving forward. These things take time, but we're moving forward and deepening our relationships and our solutioning capability with our customers. So if you look at our, sorry, if you look at our invested capital, you'll see that directionally it's coming down. Now, this is not reflective of the amount of change that has happened in the last three to four months. For most of the last year, invested capital, we started high. In the middle of the year, we went up higher. And the changes that have happened to pricing has happened more in Q4 of last year. And you can see that trend in terms of the lowering of closing invested capital. And this will, over the H1, this will go down further if these prices remain at where they are or where they are headed. And so when we look at our returns, we look at average returns, which is a three-point average over the year. So that's where you'll see that the returns are falling, but this should change because as we are releasing higher-priced inventory, which is happening already, we saw the changes in cash flow that Muthu pointed out. So the working capital will come down and the returns will improve. What's important to note here is that we are able to pass on the pricing, and that's a critical thing. As long as we can retain our margins, pass on the pricing, maintain our EBIT, and ensure that we can get the cost of capital and the risk premium that is required in these markets, that is the important thing, and that's where we believe we have done well, and that's what gives us confidence for the future as the capital comes down, that these returns will improve as well as the earnings will hopefully continue on the growth path. So you look at the two segments in which we report, global sourcing remains the foundation on top of which we are building a value-added single ingredient and solutions business. And global sourcing was tested. And global sourcing came out very well during this period. Small growth in volumes, but almost a 6.5% growth in EBIT, being able to showing that actually it's on lower volumes, higher EBIT. So therefore, ability to not only price, but also price on a risk-adjusted basis. And therefore, the EBIT per ton growth that you see is, I think, again, very important part of that we are able to maintain our earnings and EBIT per ton. And on capital, again, it deployed a lot of capital for most of the year. That capital is coming down. It's coming down further in Q1. So that's again a good sign that we will be able to ramp up returns on this business as we go through the next year. On the ingredient solution, we were slightly off on our EBIT. Volumes have been lower in this business, and in terms of the lead lag in pricing, we have had lower price – the higher price contracts are yet to be – because in this segment, we have much longer-term contracts, and they take time to pass through. So we, in terms of our pricing and our ability to price these contracts, we have been able to – make our earnings, but they will pass through the books as we go through the shipments. A couple of areas which were affected during this period, certainly our IS business in coffee was affected because of the sharp increase in coffee prices, as well as the change between the Robusta and Arabica pricing, which impacted margins in the soluble coffee business, but that is now correcting. We were also affected somewhat by the tariffs because the steep tariffs on Brazil and therefore we had set up a new plant there and that also got impacted. The soluble coffee has been impacted cyclically but the business is on a very strong footing and already we see in Q1 and late Q4 of last year in Q1 that the volumes and margins are picking up so we don't We believe that that will correct itself. And the real big growth in this year across nuts and spices has been on the private label side. So, yes, it's been a tough year. It's been, in a sense, a flat year and a year of consolidating, managing risks, managing capital. But the way we are positioned at the end of year and the way – The markets are headed and the way we are positioned in those markets, we feel very confident of both improving earnings as well as returns in 26 and beyond. With that, I'll hand over to Sunny and happy to take questions later.