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Unlocking long-term value

and driving sustainable growth

Strategy Report

Annual Report 2020

Olam International Limited

About Olam

Olam International is a leading food and agri-business supplying food, ingredients, feed and fibre to 17,300 customers worldwide. Our value chain spans over 60 countries and includes farming, a direct and indirect sourcing network of an estimated five million farmers, processing, distribution and trading operations. We are organised by two operating groups - Olam Food Ingredients (OFI) and Olam Global Agri (OGA) both held by the parent Olam International Limited (OIL) which provides stewardship and acts as an accelerator, incubating new growth engines. Through our Purpose to 'Re-imagine Global Agriculture and Food Systems", Olam aims to address the many challenges involved in meeting the food, feed and fibre needs of a growing global population, while achieving positive impact for farming communities, our planet and all our key stakeholders. Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST. 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 Olam"s 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.

Image disclaimer

A number of images used in this report were taken prior to COVID-19. The full report is available online at olamgroup.com/investors

About this report

Our 2020 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.

Image Right:

Through our Purpose, we seek to

achieve three outcomes, one of which is Prosperous Farmers and

Food Systems. We source products

from over 5 million farmers, many of whom we support through our sustainability programmes.

Strategy ReportGovernance Report Financial Report

Contents

2-3Business Model

4-7Our financial and

performance highlights

8-9Chairman"s letter

10-19Group CEO"s review

20-27Group CFO"s review

28-41Olam Food Ingredients (OFI)

42-53Olam Global Agri (OGA)

54-63Olam International Limited (OIL)

64-69Risk management

70-75Our Capitals and Material Areas

76-87Human Capital

88-103Natural Capital

104-105Intellectual Capital

106-121Social Capital

122-125Manufactured Capital

126-128Intangible Capital

129-134Olam Integrated Impact Statement

135-138General Information

Unlocking long-term value

and driving sustainable growth olamgroup.com11

Business Model

Unlocking long-term value and

driving sustainable growth Incubate new platforms for future growth (Engine 2)

Three separate entities

Olam International (OIL), Olam Food

Ingredients (OFI) and Olam Global Agri

(OGA) by end of 2023 Responsible divestment of de-prioritised assets and exiting businesses

Please see page 54 for more information

How do we unlock value?

1

As announced in January 2020

we are undertaking a re-organisation of our business to create two new coherent operating groups, Olam

Food Ingredients (OFI) and Olam

Global Agri (OGA), that are well-

positioned for further growth in line with key customer trends and market opportunities.

This aims to unlock and maximise

Olam"s long-term value via a carve-

out, IPO and concurrent demerger first of OFI and OGA subsequently.

The carve-out and separation of OFI

and OGA is estimated to be completed by the end of 2021. Following a comprehensive strategic review, the planned IPO of OFI is expected by H1 2022. The Olam

Group is also evaluating a scheme of

arrangement which would see Olam"s listing status on the Mainboard of the

Singapore Exchange Securities

Trading Limited move to a new holding

company. It is intended that OFI will be demerged from the Olam Group by way of a distribution in specie of shares in OFI to Olam shareholders at the point of demerger, in conjunction with the IPO.

In parallel, we continue to explore

similar strategic options for maximising the value of OGA within the Olam Group.

IPO and concurrent demerger

of OFI by H1 2022, pursue similar strategic options for OGA

Carve-out and separation of

OFI and OGA is estimated to be

completed by the end of 2021

Re-organisation Plan

One holding company and

two operating groups (January 2020 onwards)

1. Please read the cautionary statement on the Re-organisation Plan on page 13.

Nurturing and partial/full monetisation of gestating businesses (Packaged Foods, Infrastructure and Logistics and Olam Palm Gabon)

Olam International Limited Annual Report 20202

Olam International Limited (OIL)

1. Interim stewardship

Holding company for OFI and OGA

until carve-out, IPO and demergers are completed:

• OFI targeting completion in H1

2022.
• OGA targeting completion in 2023.2. Accelerator

• Responsible divestment of

de-prioritised assets and exiting businesses.

• Nurturing and partial/full

monetisation of gestating businesses.

• Incubate new platforms for future

growth (Engine 2).To maximise long-term intrinsic value for our continuing shareholders

Re-imagining Global Agriculture and Food Systems

To be the most differentiated and valuable global food and agri-business

Our Governing Objective

Our Purpose

Our Vision

Delivering value

through our capitals

Across our footprint, we create

value for our stakeholders by investing in human capital, natural capital, social capital, intellectual capital, manufactured capital and intangible capital that build valuable strategic assets, driving long-term value.

Olam Food Ingredients (OFI)

• Industry-leading businesses offering sustainable, natural, value-added food ingredients which are 'on-trend" • Comprises five businesses: Nuts, Spices, Dairy, Coffee and Cocoa

Olam Global Agri (OGA)

• A market leading and differentiated food, feed and fibre global agri-business with unique focus on high-growth emerging markets, delivering high returns • Comprises five businesses: Grains and Animal Feed & Protein, Edible Oils, Rice, Cotton and Commodity Financial Services (CFS)

CocoaCoffeeSpicesDairyNuts

Integrated sustainable sourcing and value-added ingredient solutions Large, attractive and growing key end-use categories

Food & Feed

(Grains and Animal Feed & Protein,

Edible Oils and Rice)

Fibre & Ag Services

Origination &

MerchandisingProcessing &

Value-added

Cotton & CFS

Please see page 28 for more information

Please see page 42 for more information

Human

Please see page 76

for more information

Natural

Please see page 88

for more information

Intellectual

Please see page 104

for more information

Social

Please see page 106

for more information

Intangible

Please see page 126

for more information

Manufactured

Please see page 122

for more information

Global and diversified blue-chip customer base

olamgroup.com3

Our financial and

performance highlights

Our financial and performance highlights

Volume

("000 Metric Tonnes) EBIT (S$million)

Group Sourcing Volume by RegionRevenue

(S$million)

Invested Capital

(S$million)

Group Sales Revenue by Region

OFI OGA OIL

88.6%8.5%

2.9%

72.1%(15.3%)

43.2%
OFI OGA OIL

Asia, Middle East and Australia

Africa

Europe

Americas

16.2%16.3%

44.3%
23.2%

60.1%35.0%

OFI OGA OIL 4.9%

22.7%56.7%20.6%

OFI OGA OIL

Asia, Middle East and Australia

Africa

Europe

Americas

16.6%46.1%17.1%

20.2%

44,409.7

+11.7%

1,069.5

+1.2%

35,820.0

+8.6%

16,665.7

+5.6%

Olam International Limited Annual Report 20204

Financial highlights

For the 12 Months Ended 31 December

(S$million)

2020 2019

Restated % Change

Profit and Loss Statement

Sales Volume (000 Metric Tonnes) 44,409.739,751.8 11.7

Sales Revenue35,820.032,992.7 8.6

Earnings Before Interest and Tax*1,069.51,057.3 1.2

Profit Before Tax 221.7335.6 (33.9)

Profit After Tax and Minority Interest245.7 316.1 (22.3) Operational Profit After Tax and Minority Interest*677.8498.2 36.0

Per Share

Earnings Per Share basic (cents)5.98.2 (28.0)

Operational Earnings Per Share basic (cents)*19.5 13.9 40.3

Net Asset Value Per Share (cents)182.3189.1 (3.6)

Net Dividend Per Share (cents)^7.58.0 (6.3)

Balance Sheet

Total Assets26,702.625,812.0 3.5

Total Invested Capital 16,665.7 15,789.3 5.6

Total Debt 14,159.4 13,079.2 8.3

Cash and Cash Equivalents 3,115.9 3,179.6 (2.0)

Shareholders Equity 5,962.5 6,185.2 (3.6)

Cash Flow

Operating Cash Flow Before Interest and Tax1,697.31,455.8 16.6 Net Operating Cash Flow After Changes in Working Capital and Tax536.41,360.2 (60.6)

Free Cash Flow to Firm(155.2)690.7 n.m.

Free Cash Flow to Equity(592.2)134.9 n.m.

Ratios

Net Debt to Equity (times)**1.721.50 0.22

Net Debt to Equity (times) adjusted for liquid assets**0.630.38 0.25 Return on Beginning-of-period Equity (%)^^ 3.4 4.7 (1.3) Return on Beginning-of-period Equity excluding exceptional items (%)^^11.27.9 3.3

Return on Average Equity (%)^^ 3.5 4.7 (1.2)

Return on Invested Capital (%)3.7 4.9 (1.2)

EBIT on Average Invested Capital (%)6.66.9 (0.3)

Interest Coverage (times)

1.4 1.5 (0.1)

Note: The 2019 financials have been restated due to a change in accounting policy SFRS(I) 16 as adopted by the Group and implemented with

retrospective effect. * Excludes exceptional items. Proposed final dividend of 4.0 cents is subject to shareholders approval at the 26 th

Annual General Meeting.

** Before Fair Value Adjustment Reserve. Excludes impact of capital securities distribution on net income and capital securities on equity.

EBIT on total interest expense.

olamgroup.com5

Our financial and performance highlights

continued

Operational Profit After Tax and

Minority Interest*

(S$million) Invested Capital (S$million) Sales Volume (000 Metric Tonnes)

Profit After Tax and Minority Interest

(S$million) Earnings Before Interest and Tax (S$million)Sales Revenue (S$million)

201820202017 2019Restated

431.5

346.6498.2677.8

OFI

8,876.7 8,552.7 8,896.5

9,442.9

OGA

2,997.9 2,121.8 2,971.5 3,779.6

OIL

3,957.8 4,137.7 3,921.3 3,443.2201820202017 2019Restated

15,832.414,812.215,789.316,665.7

OFI

4,003.0 3,791.0 3,812.2 3,786.6

OGA

16,035.5 26,615.1 34,367.7 39,355.6

OIL

2,496.1 2,461.5 1,571.9 1,267.5

201820202017 2019Restated

22,534.632,867.6

39,751.844,409.7

OFI

667.8 677.9 793.6 771.1

OGA

312.4 225.4 329.5 462.4

OIL (33.0) (60.3) (65.8) (164.0)201820202017 2019Restated

947.2843.01,057.3

1,069.5

OFI

13,277.0 12,068.3 12,144.8 12,546.7

OGA

10,457.5 15,995.5 18,850.3 21,515.9

OIL

2,538.0 2,415.2 1,997.6 1,757.4201820202017 2019Restated

26,272.530,479.032,992.735,820.0

20182017 2019Restated

580.7
347.8
316.1
245.7
2020

Four-year financial summary

* Excludes exceptional items.

Olam International Limited Annual Report 20206

Number of Customers Net Asset Value Per Share

(cents)Earnings Per Share (cents)

Top 25 Customers" Share of Total

Sales Revenue

(%)Shareholders" Equity (S$million)Return on Equity^^

201820202017 2019

22,000

19,80025,200

17,300

20182017

200.1

193.4189.1182.3

20202019Restated

20182017 2019

15.122.7

23.126.9

2020

20182017

6,443.6

6,325.46,185.25,962.5

20202019Restated

2018202020172019Restated

10.811.2

3.4 7.7 Return on Beginning-of-Period-Equity Excluding Exceptional Items

Return on Beginning-of-Period-Equity

5.34.77.9

18.619.5

5.9 13.3

Operational Earnings Per Share

9.28.213.9

2018202020172019Restated

Earnings Per Share

^^ Excludes impact of capital securities distribution on net income and capital securities on equity.

olamgroup.com7

In the midst of a pandemic, our

diversified portfolio and footprint in more than 60 countries enabled the Group to navigate challenges for customers, keep essential products moving, and contribute to the planet"s food security.

Lim Ah Doo

Chairman, Non-Executive

and Independent Director

Unlocking long-term value and

driving sustainable growth

Chairman"s letter

The events of the past year have underlined

the importance of Olam in the world"s food and agri supply chain. In the midst of a pandemic, our diversified portfolio and footprint in more than 60 countries enabled the Group to navigate challenges for customers, keep essential products moving, and contribute to the planet"s food security.

The strength of our global stakeholder

relationships and continued focus on risk management - including by ensuring Business

Continuity Programmes were tested and

fit-for-purpose - were also critical to Olam"s response to COVID-19.

Employee welfare was a top priority. At the

same time, I am also proud that our team stepped up to help others. Olam has committed humanitarian aid globally worth over

US$7 million towards the fight against COVID-19

in our communities. In Singapore, where Olam is headquartered, Board members and employees generously matched donations by the Group dollar-for-dollar to The Courage Fund to support frontline workers and the disadvantaged.

Strong financial performance

At the same time, the Board and senior

management of the Olam Group remained focused on creating value for shareholders.

It is therefore pleasing to report a significant

year in terms of both financial and operational performance.

While not immune to the impact of COVID-19,

especially in the first half of 2020, the Group was able to navigate the challenges to improve recurring income, or Operational PATMI, by 36.0% to S$677.8 million in the year, its strongest showing in several years.

Olam"s two new operating groups following our

re-organisation - OFI and OGA - were resilient.

OFI grew EBIT by 43.3% in H2 2020 after

rebounding from the impact of COVID-19 in the first half of the year. This steady performance overall also has to be seen against a strong year inquotesdbs_dbs1.pdfusesText_1

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