Olam International : Strategy Report 2021

Transforming to serve a changing world

Strategy Report

Olam Group Limited Annual Report 2021

About Olam

Olam is a leading food and agribusiness supplying food, ingredients, feed and fibre to 20,900 customers worldwide. Our value chain spans over 60 countries and includes farming, origination, processing and distribution operations.

Through our Purpose to 'Re-imagine Global Agriculture and Food Systems', Olam aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders.

Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in Singapore in terms of market capitalisation on SGX-ST and we are a Fortune Global 500 company.

Since June 2020, Olam has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of its supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong environmental, social and governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds.

About this report

Our 2021 report is made up of three chapters: Strategy Report, Governance Report and Financial Report.

Strategy Report: This chapter offers narrative about our strategy, our performance and key market factors and trends. It can be read independently as an Executive Summary or as part of the full report.

Strategy Report

Governance Report

Financial Report

The full report is available online at olamgroup.com/investors

Image disclaimer

A number of images used in this report were taken prior to COVID-19. In some instances, images have been used from other Olam locations to illustrate programmes which we have been unable to photograph because of COVID-19 restrictions.

Transforming to serve a changing world

Contents

2

Re-organisation structure

4

Financial and performance highlights

8

Chairman's letter

10

Group CEO's review

18

Group CFO's review

26

ofi

38

Olam Agri

48

Remaining Businesses of Olam Group

52

Olam Ventures

56

Olam Technology Business Services

58

Olam Global Holdco

61

Risk management

66

Capitals and Material Areas

70

Human

80

Natural

92

Intellectual

94

Social

104

Manufactured

108

Intangible

110

Integrated Impact Statement

118

General information

olamgroup.com

1

Re-organisation structure

Re-organising to deliver value on a sustained basis

In January 2020, Olam announced a transformational Re-organisation Plan to split the company into three distinct and coherent operating groups that are Purpose-led and future-ready in order to maximise Olam's long-term value on a sustained basis.

The three operating groups are: ofi (Olam Food Ingredients), Olam Agri (previously Olam Global Agri) and the Remaining Businesses of Olam Group.

We have developed a clear Purpose, compelling vision and a differentiated strategy for each of these new operating groups. Each operating group can now capitalise on specific trends that underpin its sectors, pursue its own strategy, take advantage of new market opportunities, attract new talent, optimise resources and invest in requisite assets and capabilities which will deliver profitable growth and build long-term value on a sustained basis.

We have reached a key milestone at the end of 2021 with the completion of the first three steps of the Re-organisation Plan including i) Re-segmentation, ii) Re-organisation, and iii) Carve-out and separation of the entities.

Preparation to enable ofi to seek a primary listing on the London Stock Exchange, with a concurrent secondary listing on the Singapore Exchange, is underway. In conjunction with the IPO, it is intended ofi will demerge from the Olam Group (OGL).

ofi

Led by its Purpose, 'Be the Change for Good Food and a Healthy Future', ofi offers sustainable, natural, value-added food products and ingredients so that consumers can enjoy the healthy and indulgent products they love. It consists of industry leading businesses, cocoa, coffee, dairy, nuts, and spices. It partners with customers, leveraging its complementary and differentiated portfolio of 'on-trend' food products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that's traceable and sustainable.

Read more on page 26.

With regard to Olam Agri, we are exploring various strategic options to maximise its value, including the potential introduction of strategic minority partner(s) via the sale of a significant minority stake in the company and/or the potential IPO and demerger of Olam Agri. These strategic options would unlock significant value for OGL's shareholders, grant Olam Agri the potential to tap capital markets for funds to accelerate its growth, and raise proceeds for OGL to optimise its capital structure by de-gearing and right-sizing its balance sheet.

Similarly, we are exploring strategic options for maximising the value of the Remaining Businesses of Olam Group comprising Olam Ventures, Olam Technology and Business Services (OTBS) and Olam Global Holdco (OGH).

Capitals

Across our footprint, we create value for Olam and our stakeholders by investing in our non-financial Capitals.

• Human	• Intellectual	• Manufactured
• Natural	• Social	• Intangible
Read more on pages 66 to 109.

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Olam Group Limited Annual Report 2021

Olam Agri

Led by its Purpose, 'Transform food, feed, and fibre for a more sustainable future', Olam Agri is a market leading agribusiness, focused on high-growth consumption markets with deep understanding of market needs, a global origination, trading and marketing footprint, with best-in-class logistics, processing and risk management capabilities. It transforms food, feed, and fibre to create value for its customers, enable farming communities to prosper sustainably and strive for a more food secure future. Operating at the heart of global food and agri-trade flows, it has leading market positions across grains and oilseeds, animal feed and proteins, edible oils, rice, specialty grains and seeds, cotton, wood products, rubber and commodity financial services.

Read more on page 38.

Remaining Businesses of Olam Group

Led by Olam Group's Purpose, 'Re-imagine global agriculture and food systems', the Remaining Businesses of Olam Group comprises:

• • Olam Ventures - an independent incubator for our Engine 2 businesses and start-up growth initiatives focusing on our leading edge digital and sustainability capabilities. Currently, this includes Jiva (Farmer Services Platform), Adva (Sustainable Lifestyle platform), Terrascope (Smart carbon management platform - previously GreenPass), Re~ (purpose brand business in food), and a co-created food and agri industry digital sustainability platform built on our proprietary AtSource solution.

• • Olam Technology and Business Services (OTBS) - delivers digital and technology services to each operating group and will utilise its capabilities to offer services to third-parties in the future.

Read more on page 48.

• • Olam Global Holdco (OGH) - holds and develops our gestating assets with a view to partially and/or fully monetise these assets over time and oversee the responsible divestment of our de-prioritised businesses and assets.

• Digital	• Operational	• Sustainability • Talent and
Excellence	Leadership
olamgroup.com

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