Olam Group Limited

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.