Strengthening

connections for a
sustainable future
Olam Group Limited Annual Report 2023
About Olam
Group Limited

Olam Group Limited is a leading food and Headquartered and listed in Singapore,
agri-business supplying food, ingredients, Olam Group currently ranks among the
feed and fibre to 22,000 customers worldwide. top 30 largest primary listed companies
Our value chain spans over 60 countries in Singapore in terms of market capitalisation
and includes farming, origination, processing on SGX-ST.
and distribution operations.
Since June 2020, Olam Group has been
Through our Purpose to ‘Re-imagine Global included in the FTSE4Good Index Series,
Agriculture and Food Systems’, Olam Group a global sustainable investment index series
aims to address the many challenges involved developed by FTSE Russell, following a rigorous
in meeting the needs of a growing global assessment of Olam’s supply chain activities,
population, while achieving a positive impact impact on the environment and governance
for farming communities, our planet and all transparency. The FTSE4Good Index Series
our stakeholders. 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.

olamgroup.com
 Strategic report

Strengthening
connections for a
sustainable future

Contents
Strategic report Governance report Financial report
2 Overview 154 Governance at a glance 194 Director's statement
4 Chairman’s letter 156 Meet the Board 199 Independent Auditor's report
8 Group CEO’s review 162 Purposeful Governance 202 Consolidated Profit
14 Financial and performance 170 Nomination and and Loss Account
highlights, and four-year Remuneration 203 Consolidated Statement
summary Committee report of Comprehensive Income
18 Group CFO’s review 176 Board Risk Committee report 204 Balance Sheet
25 ofi 178 Audit Committee report 205 Statements of Changes
41 Olam Agri 185 Capital and Investment in Equity
59 Remaining Olam Group Committee report 208 Consolidated Cash Flow
83 Sustainability 187 Corporate Responsibility and Statement
124 Response to the TCFD Sustainability Committee 210 Notes to the Financial
129 Risk management report Statements
133 Integrated Impact Statement 189 Managing stakeholder 269 Corporate information
151 General information relationships 270 Shareholding information
272 Notice of Annual General
Meeting
280 Addendum to the Annual
Report 2023
Proxy form

Olam Group Limited Annual Report 2023 1

Overview

Group at a glance

We grow, source, trade, process, manufacture and distribute

food ingredients, feed and fibre including cocoa, coffee, wheat,
rice, cotton and wood, alongside trading and risk management
expertise to customers around the globe.

ofi is partnering with Olam Agri is transforming The Remaining Olam

customers to co-create food, feed and fibre to Group is responsible for
solutions that anticipate cultivate a more the divestment of non-core
and meet changing sustainable future. assets and businesses,
consumer preferences. nurturing and partially or
fully monetising gestating
businesses, and developing
Our product platforms include: Our product platforms include:
continuing businesses;
Cocoa; coffee; dairy; nuts; and Grains and oilseeds; wheat
spices. it is also responsible for
milling and pasta; rice; edible
oils; specialty grains and seeds; incubating new sustainability
integrated feed and protein; and digital platforms for
cotton; wood products; rubber;
growth and providing IT,
freight management; and
risk management solutions. digital and shared services.
Read more on pages 25 to 40. Read more on pages 41 to 58. Read more on pages 59 to 82.

2 olamgroup.com
 Strategic report

We work with range of suppliers and customers, from large-scale

farmers to smallholders, from food manufacturers to artisanal chefs,
from packaged food producers to retailers, and from feed producers
to cotton spinners. We deliver our products and services through our
different businesses with the support of our employees.

Nupo Ventures is Mindsprint offers digital Olam Global Holdco

unleashing the potential solutions to empower leverages food,
of next-generation businesses to meet agriculture and emerging
businesses to positively today’s needs and market expertise to
impact people and anticipate tomorrow’s develop businesses
our planet. challenges. along the value chain.

Our ventures include: Our services include: Our businesses include:

Terrascope and Jiva. Digital transformation; Olam Palm Gabon; Olam Rubber
enterprise transformation; Gabon; Caraway; Arise P&L; and
business process services; Rusmolco.
and cybersecurity and
privacy services.

Read more on pages 62 to 68. Read more on pages 70 to 73. Read more on pages 74 to 77.

Olam Group Limited Annual Report 2023 3

Chairman’s letter

Strengthening connections
for a sustainable future
As 2023 drew to a close, all of us in the food and agriculture sector
- and beyond - continued to grapple with challenging global
macroeconomic and geopolitical conditions.

When the year began, we were cautiously optimistic.

Despite the challenges from a prolonged Russia-Ukraine
war, rising inflation and high interest rates spilling over
from 2022, we were confident about Olam’s resilience
and ability to grow. This was on the continued evidence
of ofi, Olam Agri and the remaining businesses of Olam
developing as distinct enterprises benefitting from the
Re-organisation Plan. The hope therefore had been to
move forward to the next stage - the dual listing of Olam
Agri on the Singapore Exchange and the Saudi Exchange,
and subsequently, ofi’s concurrent listing on the London
Stock Exchange and the Singapore Exchange, while
seeking strategic partnerships to help grow the
remaining businesses within the Group.
However, the proposed Olam Agri dual listing has not
materialised as the regulatory framework is still being
finalised in the Kingdom of Saudi Arabia to enable the
listing of foreign companies and the issuance of Saudi
Depository Receipts on the Saudi Exchange.

Lim Ah Doo
Chairman, Non-Executive
& Independent Director

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 Strategic report

While the IPOs of ofi and Olam Agri remain on the table, Responding decisively in testing times
we are reviewing all other strategic options to unlock and
I would also like to take this opportunity to draw a line under
realise value for shareholders. We will share updates in a
concerns over allegations about our operations in Nigeria
timely manner.
reported in the media. At Olam, we uphold the highest
Re-organisation and core business standards of governance and compliance. After the
Company had categorically rejected the allegations, the
transformation remain on track Board and its Audit and Risk Committee launched an
Notwithstanding this setback, we take heart that we continue independent internal investigation into the allegations,
to witness sharper strategic positioning and focus, better conducted by external counsels and external accountants.
solutions for customers, and stronger market share in targeted
markets over the course of 2023, as the results show. The investigation concluded in mid-February 2024 and
the investigation team found no evidence supporting any
Amid the challenging backdrop, the Group reported a 10.1% of the allegations reported. Throughout the investigation,
growth in EBIT to S$1.8 billion as both ofi and Olam Agri all our businesses in Nigeria continued to operate as normal
recorded double-digit growth even as Group revenue and with the investigation now over, the management team
declined 12.1% year-on-year to S$48.3 billion. looks forward to continuing to invest and grow the business
Group PATMI was down 55.7% year-on-year to S$278.7 million in Nigeria.
as EBIT growth was offset by a full year impact of higher
Staying the course
interest rates, lower contribution from Olam Agri following
our 35.4% stake sale to SALIC, and higher exceptional losses In the current year 2024, we expect the global macro risks
arising mainly from significant adverse impact from and market volatilities to heighten and shipment disruptions
an industry-wide aberration for almond yields in Australia to continue as geopolitical events unfold.
for the season. Operational PATMI decreased by 41.4% Many of our stakeholders have been with us on our journey
to S$458.1 million. for years, even decades. Relative newcomers to Olam will
ofi delivered earnings growth on continued execution of its also be aware that we have a history of navigating and
strategic pivot towards a more solutions-led and customer- overcoming headwinds, crosswinds and other market
centric organisation. EBIT grew 11.1% to S$829.3 million uncertainties. Each time, Olam has emerged stronger and
despite a 4.9% dip in revenue to S$15.6 billion. This growth stayed true to our Purpose.
is also due to ofi focusing on selective volume opportunities I have no doubt this will continue to be the case in 2024.
that maximise earnings and returns. As we continue to work towards achieving the next key
Olam Agri posted another strong set of results despite milestone, each of our operating groups is building new and
the challenging landscape it has been facing since the exciting futures while preserving what makes Olam, Olam.
second-half of 2022. EBIT grew 12.8% to S$967.7 million We are convinced that the Company can continue to create
in 2023, driven by the robust operating performance sustainable long-term value for everyone who is connected to
of its Processing & Value-Added segment. us - our shareholders, our people, our customers, the people
we work with, and the environment in which we operate.
The Remaining Olam Group reported an EBIT loss of
S$25.1 million on lower earnings from De-Prioritised/Exiting
Assets and losses in the Nupo Ventures business.
The areas of progress by the operating groups reinforced the
core business transformation that underpins our Re-organisation
to deliver sustained long-term growth and value creation for
shareholders. This is the baseline of achievement on which We continue to witness sharper
we can truly unlock value. Recognising this, the Board
recommends a final dividend of 4.0 cents per share, which
strategic positioning and focus, better
brings the total dividend payout for 2023 to 7.0 cents per share. solutions for customers and stronger
We launched a share buyback programme for up to a market share in targeted markets
maximum of 5.0% of total outstanding shares within our over the course of 2023.
current mandate and the renewal of this mandate, for which
we are seeking shareholders’ approval at our upcoming
Annual General Meeting (AGM). Our belief is that this will
catalyse greater value for continuing investors.

Olam Group Limited Annual Report 2023 5

Chairman’s letter

Board stewardship changes The Olam Agri Board, chaired by Mr. Serge François Schoen,
former Chief Executive and Executive Chairman of Louis Dreyfus
During the year, we rationalised the number of Board Company and a veteran of the industry since July 2023, will
Committees after we had completed the restructuring of continue to steer Olam Agri into its next phase of growth.
the Group and formed ofi and Olam Agri and their respective
Boards under the Re-organisation Plan. This resulted in the We bid farewell to Mr. Kazuo Ito and Mr. Hideyuki Hori, who
dissolution of the Capital & Investment and Board Steering stepped down as Non-Executive Directors in May 2023 and
Committees, and the merger of the Risk and the Audit early March 2024 respectively. I would like to express our
Committees to form the Audit & Risk Committee. I wish thanks to Mr. Ito and Mr. Hori for their contribution to the
to thank the respective Committee Chairs and Committee Board and the relevant Committees, the business and the
members for their individual and collective valuable Re-organisation. In their place, we extend a warm welcome
contributions to the respective Committees and for to Mr. Shuji Kobayashi and Mr. Yuji Tsushima who have
enhancing Olam’s corporate governance. joined as Non-Executive Directors. As key leaders in the Food
Industry Group of Mitsubishi Corporation, they bring deep,
The ofi Board, which has been chaired by Mr. Niall direct and relevant experience to bear towards the
FitzGerald, former Chairman and CEO of Unilever PLC stewardship of the Group.
and a widely respected and experienced international
business leader since September 2021, will continue to I also wish to recognise Mr. Nihal Kaviratne for his valuable
provide its stewardship in pivoting ofi to be a focused contributions over his tenure as Non-Executive and Independent
ingredients and solutions company. Director, and for his stewardship of the Corporate Responsibility
& Sustainability Committee, which has been renamed the
Sustainability Committee, as Chair of the Committee.

6 olamgroup.com
 Strategic report

My sincere gratitude to all my fellow Directors for your

steadfast commitment to the Group and subsidiaries and
your guidance and counsel as we continue on our journey.
The areas of progress by the operating
Appreciation groups reinforced the core business
To everyone who has played a part, and been a part of the transformation that underpins our Re-
Olam journey in the past year - thank you. My deepest organisation to deliver sustained long-term
appreciation goes out to our shareholders and stakeholders
growth and value creation for shareholders.
- customers, suppliers, communities, advisors - for your
continued support. This is the baseline of achievement on
which we can truly unlock value.
Finally, I must thank the executive team and our employees
whose dedication and commitment never waver even in the
most challenging of times. Your support for one another and
the communities in which you operate has, as always, been
exemplary.

Lim Ah Doo
Chairman, Non-Executive & Independent Director

Olam Group Limited Annual Report 2023 7

Group CEO’s review

Focused execution and

resilient growth
2023 was in many ways a historical year for global markets.
The year was defined by significant economic uncertainty,
geopolitical tensions, environmental instability and profound
technological change. Despite this challenging backdrop we
are pleased to deliver resilient operating profit (EBIT) growth
and continued strategic progress across our businesses in 2023.

The global market remains challenging with geopolitical

tensions, inflation and interest rates remaining elevated,
alongside disruption to shipping and trade corridors,
and changing supply and demand patterns in the food
and agricultural sector.

I am proud that as an organisation

we have displayed resilience, not just
in our operational execution but also
the enduring dedication and efforts
of our employees to strengthen
connections to serve our customers,
communities and to reimagine global
food and agriculture systems for
a more sustainable future.

Sunny Verghese
Executive Director, Co-Founder & Group CEO

Sunny Verghese
Executive Director,
Co-Founder & Group CEO

8 olamgroup.com
 Strategic report

The war in Ukraine continues to have a significant impact on Capitalising on our growth prospects
food supply chains with Ukrainian corn and wheat exports
for 2023/24 down by 24% compared to the previous year. Double-digit EBIT growth from both ofi and Olam Agri
With protracted disruption to agricultural production, reflected strong operational execution, though higher sales
distribution networks and trade flows, the ongoing conflict volumes were offset by lower prices across several products
has intensified the challenge of ensuring food security. It is across the year. Second-half year performance saw improved
projected that almost 600 million people will be chronically results over H1, and up over the same period in 2022, which
undernourished in 2030 if the war is sustained, with the gives confidence to our belief that we are taking steps to
world’s poorest and most hungry populations in Africa hit capitalise on our growth prospects and to drive returns for
hardest.1 Continued and escalated conflict in the Middle investors. We have launched a share buyback programme
East will also have repercussions in human and economic up to a maximum 5.0% of our outstanding shares within our
terms, where underlying threats to food security and energy current mandate and the renewal of this mandate at the
security will soar. Annual General Meeting in April 2024.

To date, domestic food price inflation remains elevated The growth of ofi and Olam Agri, and continued progress
across all countries of varying income levels, with inflation of our businesses in the Remaining Olam Group, is testimony
rates ranging between 10.3% to 29.9% in low-income to the differentiated, unique propositions and solid execution
countries to upper-middle-income countries as noted of each respective business. Each operating group continues
by the International Food Policy Research Institute and to build its capabilities and is well positioned to best meet
the World Bank.2 demand and to capitalise on market opportunities.
Notwithstanding the continuing global macro risks and market
As the world faces complex challenges and disruptions, volatilities impacting trade flows, we expect the food and
I am proud that as an organisation we have displayed agriculture industry to remain resilient.
resilience, not just in our operational execution but also
the enduring dedication and efforts of our employees to During the year, the operating groups invested strategically
strengthen connections to serve our customers, communities to strengthen and expand their capabilities.
and to drive our Purpose of reimagining global food and ofi continues to execute its strategy by investing for
agriculture systems for a more sustainable future. the future with new manufacturing assets while building
The focused and differentiated strategies of our operating enhanced capabilities in sustainability, digital, innovation
groups continue to allow us to capture opportunities across and other customer facing areas. It commissioned a dairy
the food, feed and ingredients space, despite the combination processing facility in New Zealand and a soluble coffee
of issues affecting the global economy. Our Re-organisation facility in Brazil, while undertaking a major expansion of its
has enabled each operating group to develop a differentiated dairy processing capacity in Malaysia. ofi opened its fourth
strategy and new game plan to capitalise on specific trends customer solutions centre in Amsterdam, adding to its network
that underpin its sectors, attract talent, drive best-in-class of existing centres in Chicago, Singapore and Bangalore.
efficiencies, invest in assets and capabilities, and innovate Its joint venture with China’s largest online snacks retailer
to capitalise on the changing needs in the global marketplace. Three Squirrels Inc. opened a new private label nuts roasting
The strengths and unique positioning of each business means and packing facility in Wuwei, China to serve one of the
they are well placed to continue to create sustainable growth world’s fastest growing markets for snack nuts. It also
and value for stakeholders. completed the acquisition of the balance 15.0% stake in
YTS Holdings Pte Ltd, owner of PT. Bumitangerang
Mesindotama (“BT Cocoa”), for US$22.3 million.

1. https://www.fao.org/3/nn735en/nn735en.pdf
2. https://www.ifpri.org/blog/despite-improved-global-market-conditions-high-food-
price-inflation-persists#:~:text=Average%20food%20inflation%20in%20upper,%25%20
by%20September%2DOctober%202023

Olam Group Limited Annual Report 2023 9

Group CEO’s review

Olam Agri continues to execute its strategy of scaling up Our Re-organisation journey
its global origination and trading operations while investing
Our transformational Re-organisation plan set a new
in value-added destination processing across Africa and Asia
direction and ambition that has been both significant and
to execute on its differentiated strategy to deliver profitable
inspiring to all our partners and to everyone within the Olam
growth and superior returns. The Strategic Supply and
Group. The Extraordinary General Meeting in April 2023 was
Cooperation agreement with SALIC is also expected to
significant in terms of the clear mandate it gave pertaining
catalyse its growth in the Gulf region. Olam Agri’s targeted
to the next steps in the Re-organisation of Olam Agri, ofi
investments included the acquisition of the aquafeed business
and the Remaining Olam Group. All three operating groups
of CUU Long Fish Import-Export Corporation in Vietnam as
continue to shape their own standalone futures.
well as additional rubber processing investments in Côte d’Ivoire
and an investment in value added scantling manufacturing Investors and stakeholders have embraced the strategy
in our wood business in the Republic of Congo. It also installed and we are thankful and appreciative as they continue
a rice bran facility to extract value from the bran produced to be supportive of our Re-organisation journey.
as a by-product of rice milling, as well as commencing the
The regulatory framework is still being finalised in the
construction and installation of a soy crush facility in Nigeria.
Kingdom of Saudi Arabia to enable the listing of foreign
Other investments included expanding capacity and
companies and the issuance of Saudi Depositary Receipts
capabilities for integrated ginning in Chad and Côte d’Ivoire,
on the Saudi Exchange. As such the Olam Agri IPO will not
and saw milling in the Republic of Congo.
take place in H1 2024. We remain committed to list ofi and
In the Remaining Olam Group, 2023 saw the growth of Nupo Olam Agri and will retain flexibility on the listing sequence,
Venture’s portfolio companies. As a corporate studio, Nupo as well as exploring other strategic options to unlock value.
Ventures is focused on incubating in nurturing ‘Profit with
The Group will consider both internal and external factors
Purpose’ businesses aiming to generate both financial
to guide its decisions including business performance of all
returns as well as pioneering bold sustainability impacts
three operating groups, prevailing capital market conditions
in primarily the food and agriculture sector. Its focus is on
and global macroeconomic developments as well as receiving
tackling ESG related challenges through innovative digital
all necessary regulatory approvals.
first solutions. 2023 saw strong growth for both its Jiva and
Terrascope businesses, while TRACT, a new digital platform
developed in conjunction with industry peers, was launched.
Though still in the early stages of their growth, these
businesses are well placed to meet the growing demand for
sustainable products and services. Digital and technology
solutions business, Mindsprint saw its development aided by
the addition of new third party customers in 2023, Second-half year performance saw
strengthening its proposition with a focus on supply chain, improved results over H1, and up over
data and analytics, enterprise technology and digital
transformation service offerings.
the same period in 2022, which gives
confidence to our belief that we are
Against this progress, we are proud to have improved our
ranking in the Fortune Global 500 list of companies, rising taking steps to capitalise on our
30 positions from 2022 following our initial inclusion in 2021. growth prospects and to drive returns
We understand there were some concerns following for investors.
allegations about our Nigerian operations. As announced
on February 19, 2024, an independent internal investigation
launched by the Olam Group Board and its Audit & Risk
Committee comprising external counsels and independent
auditor has concluded. The investigation team found no
evidence supporting any of the specific allegations reported.
We have cooperated fully with the Nigerian authorities and
no charges have been brought against Olam Nigeria or any
of its officers. All our businesses in Nigeria operate as normal
and we look forward to investing and growing in the country.

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Delivering sustainable and positive market demand for sustainably produced and low-emission
impact agricultural products that support the transition to net-zero
and nature-positive food systems. It also joined the COP28
Sustainability is woven into the fabric of Olam. Conducting Action Agenda on Regenerative Landscapes initiative to
business in an ethical, socially responsible and environmentally aggregate, accelerate and amplify efforts to implement
sustainable way is critical to our ongoing performance and regenerative agricultural practices to restore and enhance
profitability, maintaining our license to operate and grow, landscapes and improve sustainability and resilience of food
and building trust and engagement with our stakeholders. and agricultural systems by 2030.
It is vital to take action to protect our natural environment,
people and communities and we are committed to playing
our part to deliver positive impacts to regenerate the living
world, tackle climate change, strengthen prosperity and
improve livelihoods, and increase the transparency and
resilience of our supply chains. If we are to reverse - and Our Re-organisation has enabled each
restore - the negative impacts on our planet and people, operating group to develop a differentiated
we cannot wait to do the right thing. Each of our operating
strategy to capitalise on specific trends
groups are advancing their approach to sustainability
in line with their respective business strategies to ensure that underpin its sectors, attract talent,
they are focused on the key areas where they can make drive best-in-class efficiencies, invest in
a positive difference. assets and capabilities, and innovate to
As our planet faces immediate and urgent challenges, we are capitalise on the changing needs of the
working and partnering to take action. ofi has been selected global marketplace.
as one of 100 companies that will pilot the EU Deforestation
Regulation information system from January 2024. Olam
Agri is among more than 20 corporate and research partners
that have joined together as part of the World Economic
Forum's pioneering First Movers Coalition for Food to create

Olam Group Limited Annual Report 2023 11

Group CEO’s review

We strive for a future where farmers can earn a living income, We recognise that we cannot deliver progress and impacts
where everyone has access to better, and affordable nutrition. alone. Listening, engaging and collaborating with the private
We continue to support activities and initiatives that are and public sectors and civil society, directly and through our
improving the livelihoods of farmers and their families in our participation in multi-stakeholder forums, is essential to
communities, as well as actions to improve food security for making real and tangible progress to achieve our own goals
all. Our Living Income Calculator has enabled us to assess but also to tackling the major social, environmental and
living income gaps in 17 supply chains and in 2023, ofi economic challenges collectively facing us.
and Olam Agri worked with the Sustainable Food Lab
Another partnership that we are proud to be part of is Olam’s
and the Living Income Community of Practice to work
contribution towards industry initiatives like the Sustainable
towards making the tool publicly available and to promote
Markets Initiative’s Agribusiness Task Force. Together with
sector-wide collaboration to improve smallholders’ income.
various industry partners, the Agribusiness Task Force was
We are delighted to be recognised for our commitment and able to launch a new blended finance framework to unlock
impact to sustainability during the past year. financing for regenerative agriculture, and the Agriculture
Sector Roadmap to 1.5°C has delivered the Soy Sector
For the second successive year, ofi was awarded the
Roadmap to halt deforestation in high priority biomes.
Sustainability Innovation Award at Food Ingredients Europe
for its Carbon Scenario Planner (CSP) and also shortlisted People powered performance
for Net-Zero Innovation of the Year at the 2024 Edie awards
for a carbon sequestration monitoring tool. ofi and Olam The talents, dedication and hard work of our employees
Agri both received recognition at the Reuters Responsible is central to our performance and success. We are focused
Business Awards with ofi’s coffee business being singled out on creating and maintaining a safe and inclusive environment
for its innovative sustainable packaging and Olam Agri where every employee feels valued and respected. As each
being highly commended for its sustainable rice farming of our businesses forges their own strategic direction, they
projects in Thailand and Vietnam. are establishing their own distinctive cultures derived from
many of the qualities that have been central to Olam’s three
We are committed to high levels of corporate governance decades of growth and success.
and alongside the Board, we ensure that Olam is governed
purposefully as we work to improve our sustainable Across our businesses we have continued to strengthen our
performance to support our growth and to better serve talent management and learning and development that is
our stakeholders. More detail can be found in the Governance providing greater access to developing the knowledge, skills
section of this report. and capabilities to keep pace with the changing world we
operate in.

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 Strategic report

We are proud to be recognised for leading the way in creating

exceptional workplaces and culture for our employees and
remain committed to providing our employees with a positive
and rewarding work culture. For the third consecutive year,
Olam Group has been named as a top employer by the Top
Employer Institute - a global authority on recognising
excellence in people’s practices - for operations across Côte
d’Ivoire, Ghana, Nigeria, South Africa and the Africa region.
Olam Agri was also awarded the Kincentric Award for Best
Employer 2023 for its business in Thailand, commended for
its people-first approach.
Ensuring the safety and wellbeing of our employees remains
our first priority and our drive to create a zero-incident culture
requires the commitment of each and every employee. We
have taken positive steps to improve our safety performance,
but we recognise there is much work to do so that every
employee can return safely to their family and friends at
the end of each day. Additionally, investing in employees’
wellbeing supports engagement, reduced absence and higher
performance and productivity, and we have continued to
implement a range of initiatives to support physical and
mental wellness, as well as promote and provide access
to healthy nutrition and meals.
As we close the book on 2023, I am proud that our business
has continued to grow in strength, and we are confident that
our transformational Re-organisation has firmly positioned
our businesses to grow and flourish. My sincere thanks to
every Olam employee for their continued commitment and
dedication to working with our customers, communities,
suppliers and partners.
I wish to express my gratitude for the support and confidence Across our businesses we have continued
of our shareholders as we have driven forward with our
to strengthen our talent management and
Re-organisation Plan while responding to the external
economic and market challenges. learning and development to strengthen our
To my fellow Board members, thank you for your wisdom,
knowledge, skills and capabilities to keep
counsel and support as we continue to execute our strategy pace with the changing world we operate in.
for growth, deliver value for all our stakeholders and
strengthen connections for a more sustainable future.

Sunny Verghese
Executive Director, Co-Founder & Group CEO

Olam Group Limited Annual Report 2023 13

Financial and performance highlights

Financial and performance highlights

Volume Revenue EBIT

(’000 metric tonnes) (S$ million) (S$ million)

44,097.4 48,272.0 1,771.9

+2.9% -12.1% +10.1%

ofi 7.4% ofi 32.3% ofi 46.8%

Olam Agri 89.7% Olam Agri 64.9% Olam Agri 54.6%

Remaining 2.9% Remaining 2.8% Remaining -1.4%

Olam Group Olam Group Olam Group

Invested Capital Group sales revenue by region Group sourcing volume by region
(S$ million) (S$ million) (’000 metric tonnes)

19,750.1 48,272.0 44,097.4

+2.2%

ofi 59.5% Asia, Middle East 49.1% Asia, Middle East 27.6%
& Australia & Australia
Olam Agri 27.6%
Africa 15.5% Africa 9.2%
Remaining 12.9%
Olam Group Europe 18.9% Europe 24.7%

Americas 16.5% Americas 38.5%

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 Strategic report

Financial highlights
For the 12 months ended 31 December
(S$ million)

2023 2022 % Change

Profit and Loss Statement

Sales Volume ('000 metric tonnes) 44,097.4 42,873.3 2.9
Sales Revenue 48,272.0 54,901.0 (12.1)
Earnings Before Interest and Tax * 1,771.9 1,608.7 10.1
Adjusted Earnings Before Interest and Tax ^ 1,825.5 1,658.8 10.0
Profit Before Tax 410.9 727.2 (43.5)
Profit After Tax and Minority Interest 278.7 629.1 (55.7)
Operational Profit After Tax and Minority Interest * 458.1 781.5 (41.4)
Per Share
Earnings Per Share Basic (cents) 6.5 15.6 (58.3)
Operational Earnings Per Share Basic (cents) * 11.2 19.6 (42.9)
Net Asset Value Per Share (cents) 190.7 199.3 (4.3)
Net Dividend Per Share (cents) 7.0 8.5 (17.6)
Balance Sheet
Total Assets 33,348.6 31,953.8 4.4
Total Invested Capital 19,750.1 19,332.5 2.2
Total Debt 16,293.8 16,145.7 0.9
Cash and short-term deposits 3,581.6 4,805.6 (25.5)
Shareholders’ Equity 7,327.4 7,659.1 (4.3)
Cash Flow
Operating Cash Flow Before Interest and Tax 2,255.7 2,193.3 2.8
Net Operating Cash Flow After Changes in Working Capital and Tax 1,030.9 1,928.1 (46.5)
Free Cash Flow to Firm 215.4 2,698.9 (92.0)
Free Cash Flow to Equity (914.8) 1,949.4 N.M
Ratios
Net Debt to Equity (times) ** 1.73 1.47 0.26
Net Debt to Equity (times) Adjusted for Liquid Assets ** 0.65 0.64 0.01
Return on Beginning-of-period Equity (%) ^^ 3.5 9.3 (5.8)
Return on Average Equity (%) ^^ 3.6 8.8 (5.2)
Return on Invested Capital (%) 6.1 6.3 (0.2)
EBIT on Average Invested Capital (%) 9.1 8.4 0.7
Interest Coverage (times) # 1.3 1.9 (0.6)

* Excludes exceptional items

^ Excludes exceptional items and amortisation of acquired intangibles
** Before Fair Value Adjustment Reserves
# PBT plus total Interest expenses on total Interest expenses
^^ Excludes impact of capital securities distribution on net income and capital securities on equity

Olam Group Limited Annual Report 2023 15

Financial and performance highlights

Four-year financial summary

Sales Volume* Sales Revenue*
(’000 metric tonnes) (S$ million)

44,097.4
45,425.3

54,901.0
44,409.7

42,873.3

48,272.0
47,002.0
35,820.1
2020 2021 2022 2023 2020 2021 2022 2023

ofi 3,265.1 3,676.9 3,585.1 3,284.3 ofi 11,993.6 14,216.8 16,391.7 15,583.4

Olam Agri 39,925.5 40,607.1 38,175.6 39,540.7 Olam Agri 22,407.9 31,276.9 36,904.0 31,319.7

Remaining 1,219.1 1,141.3 1,112.6 1,272.4 Remaining 1,418.6 1,508.3 1,605.3 1,368.9
Olam Group Olam Group

Earnings Before Interest and Tax*^ Invested Capital*

(S$ million) (S$ million)
1,771.9

19,750.1
1,608.7

19,332.5
1,422.6

19,012.2
16,666
1,069.4

2020 2021 2022 2023 2020 2021 2022 2023

ofi 692.1 820.7 746.5 829.3 ofi 8,943.4 10,761.5 11,545.9 11,754.3

Olam Agri 497.0 752.9 857.7 967.7 Olam Agri 4,210.7 5,242.1 5,123.5 5,457.6

Remaining (119.7) (151.0) 4.5 (25.1) Remaining 3,511.9 3,008.6 2,663.1 2,538.2
Olam Group Olam Group

Profit After Tax and Minority Interest Operational Profit After Tax and Minority Interest^
(S$ million) (S$ million)
961.1
686.4

629.1

781.5
677.8

458.1
278.7
245.7

2020 2021 2022 2023 2020 2021 2022 2023

* 2020 to 2021 financial results for operating groups have been re-stated to reflect intra-group adjustments
^ Excludes exceptional items

16 olamgroup.com
 Strategic report

Earnings Per Share Return On Equity^^

(cents) (%)

26.3 16.8

19.1 19.6 11.2 11.7 11.7

18.3

9.3 6.0
15.6 11.2
3.4

5.8 6.5
3.5

2020 2021 2022 2023 2020 2021 2022 2023

Earnings Per Share Return on Beginning-of-Period-Equity
Operational Earnings Per Share Return on Beginning-of-Period-Equity Excluding Exceptional Items

Net Asset Value Per Share Shareholders’ Equity

(cents) (S$ million)
199.3

190.7

7,659.1

7,327.4
182.3

180.5

6,771.2
5,962.5

2020 2021 2022 2023 2020 2021 2022 2023

Number of customers Top 25 customers’ share of total sales revenue

(%)
26.9

26.7
22,000
20,900

20,200

23.9
22.8
17,300

2020 2021 2022 2023 2020 2021 2022 2023

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

Olam Group Limited Annual Report 2023 17

Group CFO’s review

Steady performance amid

heightened challenges
During the year under review, we recorded sales volumes of
44.1 million metric tonnes (MT), a 2.9% increase compared to 2022.
Despite the higher sales volumes, revenue decreased by 12.1% to
S$48.3 billion (2022: S$54.9 billion) due to the fall in commodity prices
across several products in our portfolio, particularly those in the Olam
Agri portfolio, as well as dairy and coffee prices in ofi’s portfolio.

We achieved a double-digit EBIT growth of 10.1% at

S$1.8 billion on improved earnings from Olam Agri and ofi.
Olam Agri achieved EBIT growth of 12.8% at S$967.7 million
(2022: S$857.7 million) supported by a strong contribution
from the Food & Feed - Processing & Value-Added segment.
ofi reported an increase of 11.1% to S$829.3 million for the
year (2022: S$746.5 million), led by Ingredients & Solutions
as the business successfully passed through input and
overhead cost inflation while also leveraging its recent
investments. Excluding the amortisation of acquired
intangibles, ofi’s Adjusted EBIT was S$874.2 million in 2023
compared with S$788.5 million in 2022, a 10.9% growth
year-on-year. The Remaining Olam Group posted an EBIT
loss of S$25.1 million, versus a gain of S$4.5 million in 2022.

Performance highlights

Volume Revenue

44.1 m MT S$48.3 bn
+2.9% -12.1%

EBIT PATMI

S$1.8 bn S$278.7 m
+10.1% -55.7%

Operational PATMI Invested Capital

S$458.1 m S$19.8 bn
-41.4% +2.2%

Gearing Free Cash Flow to

Equity
1.73x
from 1.47x -S$914.8 m N Muthukumar
-S$2.9 B Group CFO

18 olamgroup.com
 Strategic report

S$ Million 2023 2022 % Change

Volume ('000 MT) 44,097.4 42,873.3 2.9

Revenue 48,272.0 54,901.0 (12.1)
EBITDA* 2,492.8 2,317.7 7.6
EBIT* 1,771.9 1,608.7 10.1
Adjusted EBIT^ 1,825.5 1,658.8 10.0
Net Finance costs* (1,130.1) (728.2) 55.2
Taxation* (111.4) (176.5) (36.9)
Exceptional Items (179.4) (152.4) n.m.
PAT 351.0 551.6 (36.4)
PATMI 278.7 629.1 (55.7)
Operational PATMI* 458.1 781.5 (41.4)

* Excludes exceptional items

^ Excludes exceptional items and amortisation of acquired intangibles

Group EBIT
(S$ million)

S$1,772 m
+18.3%
+10.1%
1,772 We have maintained discipline in
1,423 1,609 our use of capital and focused our
1,069
46.8% investments that are earnings and
57.7% 46.4%
returns accretive while enhancing
64.7% our sustainability impact. Given the
52.9% 53.3%
54.6% inflationary and rising interest rate
46.5% background, we have focused on
0.3%
-11.2% -10.6% -1.4% optimising our overall cost structures
2020 2021 2022 2023 while seeking to pass through rising
ofi interest costs.
Olam Agri

Remaining
Olam Group

1. Saudi Agricultural and Livestock Investment Company

Olam Group Limited Annual Report 2023 19

Group CFO’s review

Invested Capital Excluding exceptional items, operational PATMI was down

(S$ million) 41.4% to S$458.1 million (2022: S$781.5 million), leading to
operational earnings per share at 11.2 cents compared with
S$19,750 m 19.6 cents in the previous year and our return on equity on
operational PATMI basis at 6.0% (2022: 11.7%).
+2.2%

19,332 19,750 We had a marginal increase in invested capital of 2.2%,

19,012
which stood at S$19.8 billion, roughly split between fixed

10,066

10,001
10,036
16,666 capital and working capital. With EBIT at S$1.8 billion, our
EBIT over average invested capital or pre-tax ROIC2, which
8,735

is a key operational metric that we track and report,

increased from 8.4% to 9.1% on a year-on-year basis.

9,266 Strategic progress

9,749
8,976
7,931

We are pleased to report the strategic progress made during

the year as our operating groups continued to capture
opportunities from their differentiated, unique business
propositions and solid execution of their strategy post our
Re-organisation.
2020 2021 2022 2023
EBIT/IC (%) 6.6% 8.0% 8.4% 9.1% ofi completed the acquisition of the balance 15.0% stake in
YTS Holdings Pte Ltd, owner of the BT Cocoa business, for a
Fixed Capital
Working Capital
consideration of US$22.3 million.
ofi commissioned two significant greenfield investments in
2023 – the New Zealand dairy processing facility and Brazil
On PATMI basis, we reported S$278.7 million for 2023 soluble coffee facility - and also undertook a major
(2022: S$629.1 million). Notably, our second-half PATMI was expansion of the dairy processing capacity in Malaysia with
significantly stronger than the first-half of the year, which strong customer engagement across markets. It opened its
was impacted by the one-off, non-recurring net exceptional fourth Customer Solutions Centre (CSC) in Amsterdam. This
loss of S$-179.4 million on the unprecedented and materially adds to the global footprint alongside already operational
lower crop yield in ofi’s almond orchards in Australia (2023: CSCs for North America in Chicago, Asia Pacific in Singapore
-S$116.5 million). Our second-half PATMI was 15.5% better and Bangalore. ofi’s joint venture with China’s largest online
than the second-half of 2022 on strong EBIT growth at both snack retailer Three Squirrels Inc. also opened a new private
ofi and Olam Agri and lower exceptional losses - even label nuts roasting and packing facility in Wuwei, China
accounting for the higher net finance costs and lower during the second-half of 2023, serving one of the world’s
contribution from Olam Agri following the sale of a fastest growing markets for snack nuts.
substantial minority stake of 35.4% to the food security
Olam Agri’s capital investments in 2023 were concentrated
company of the Kingdom of Saudi Arabia, SALIC1.
on our high-margin, high-return Food & Feed - Processing &
Still, for the year 2023, our PATMI was a decline of 55.7%, Value-Added segment, including the acquisition of the
dragged down by the full-year impact of higher interest aquafeed business of CUU Long Fish Import-Export Corporation
rates on net interest expense of S$401.9 million, lower share in Vietnam for approximately US$15.0 million and organic
of profit from Olam Agri equivalent to S$177.8 million in capital expenditure (CapEx), including the expansion of its
minority interests, and higher exceptional losses which fish feed production capacity, truck fleet, rice milling
included Re-organisation costs of S$62.9 million. operations and the installation of a rice bran facility to
extract value from the bran produced as a by-product of rice
S$ Million 2023 2022 milling. The soy crushing plant in Nigeria was also constructed
Re-organisation Cost (62.9) (130.2) and installed in 2023. Other strategic investments by Olam
Accelerated Charge on Agri include expansionary CapEx in integrated ginning in
Share-Based Expenses – (19.0) Chad and Côte d’lvoire, rubber production in Côte d’lvoire,
Acquisition Related Cost – (3.2) and saw milling in the Republic of Congo.
Australia Almond Lower Crop Yield (116.5) – Post 2023, Olam Agri completed the acquisition of Avisen
Exceptional items (179.4) (152.4) SARL, Senegal’s second-largest poultry feed supplier for
EUR17.0 million, which aligns with its strategy to expand and
strengthen its animal feed capabilities in West Africa.

1. Saudi Agricultural and Livestock Investment Co.

2. Return On Invested Capital

20 olamgroup.com
 Strategic report

As we remain focused on growing our core competencies and Uses of capital

businesses, we continue to divest our de-prioritised assets. In (S$ million)
2023, we completed the divestment of our 10.0% interest in Uses of Capital
Food Security Holding Company, the Saudi flour milling S$23,962 m
(S$ Million)
company incorporated in Saudi Arabia, for an aggregate 24,229 23,962
consideration of US$18.7 million.
9,459 9,455
In late 2022, the Group completed the sale of 35.4% in
Olam Agri to SALIC for US$1.24 billion, valuing Olam Agri
at an equity valuation of US$3.5 billion. The Group received 846 791
an additional S$67.4 million from SALIC in 2023 in relation
to the post-closing adjustment, as set out in the share 8,539
9,580
purchase agreement.
Lastly, the Group transferred its sugar milling assets in India 4,806
3,582
from the Remaining Olam Group into Olam Agri at net 579 554
consideration of US$6.7 million. 2022 2023

Balance sheet remains strong despite Fixed capital

Working capital
Right-of-use assets
Cash
higher working capital Others
As at end-2023, the Group’s total assets3 were S$24.0 billion,
comprising S$9.5 billion of fixed capital, S$791.0 million of
right-of-use assets, S$9.6 billion of working capital and
S$3.6 billion of cash. Sources of capital
(S$ million)
The total assets were funded by S$7.4 billion of equity, Sources of Capital
S$6.4 billion of short-term debt, S$8.9 billion of long-term
debt, as well as short-term and long-term lease liabilities
S$23,962 m
(S$ Million)
24,229 23,962
of S$131.0 million and S$850.1 million respectively. 7,700 7,366

Compared with a year ago, the overall balance sheet as

at end-2023 decreased by S$266.2 million mainly from 424 341
5,052 6,419
the reduction in cash balance offsetting the rise in working
capital. Our cash position decreased by S$1.2 billion to
S$3.6 billion (end-2022: S$4.8 billion) due to the repayment 10,067 8,893
of external loans.
141 131
Working capital rose by S$1.0 billion, as inventory, 886 850
receivables and advance payments to suppliers increased -41 -38
more than the credit extended by suppliers. As a result, our 2022 2023
working capital cycle was extended from 55 days at the end
Equity and Reserves Long-Term Debt
of the prior year to 72 days as at end-2023 due to the Non-controlling Interests Short-Term Lease Liabilities
increase in inventory value in ofi and the temporary increase Short-Term debt Long-Term Lease Liabilities
in receivables in Olam Agri but remained under control. Cash-to-Cash Cycle Fair Value Reserve
(days)

Cash-to-cash cycle
(days)
72

55

2022 2023

3. Total assets refers to net assets with the exclusion of borrowings and lease liabilities.

Olam Group Limited Annual Report 2023 21

Group CFO’s review

Net gearing rose to 1.73 times (end-2022: 1.47 times) due to Net operating cash flow for 2023 decreased by
higher net debt and reduced shareholders’ equity, but still S$897.2 million to S$1.0 billion (2022: S$1.9 billion) due to
within a comfortable range. Our net debt increased by the large increase in working capital utilisation. Gross CapEx
S$1.4 billion on account of higher working capital was S$697.2 million compared to S$1.1 billion in 2022. After
requirements, which we witnessed in the second-half of disposals and divestments, net CapEx amounted to
2023. Our equity position decreased by S$334.0 million S$580.2 million in 2023 while in 2022, there was a net cash
largely due to foreign currency translation loss from the inflow of S$984.8 million due primarily to the divestment
devaluation of the US dollar, Nigerian naira and Russian proceeds from the sale of the minority stake in Olam Agri.
ruble against the reporting currency, as well as dividend As a result, Free Cash Flow to Firm (FCFF) decreased
payments. substantially from S$2.7 billion in 2022 to S$215.4 million.
Interest paid also increased significantly, leading to a
Of the S$9.8 billion inventory position, approximately 61.6%
negative S$914.8 million in Free Cash Flow to Equity (FCFE)
or S$6.0 billion were readily marketable inventories (RMI)
against a positive FCFE in 2022 (2022: S$1.9 billion).
that were liquid, hedged and/or sold forward, operating
as near-cash assets on our balance sheet. In addition, S$ Million 2023 2022 Change
approximately 56.6% of the S$3.3 billion in trade receivables Operating Cash Flow
were secured. Our net gearing as at end-2023 would be (before Interest and Tax) 2,255.7 2,193.3 62.4
at a very healthy 0.65 times after adjusting for RMI and
Changes in Working
secured receivables (end-2022: 0.64 times), reflecting
Capital (1,224.8) (265.2) (959.6)
the true indebtedness of our Group.
Net Operating Cash Flow 1,030.9 1,928.1 (897.2)
S$ Million 2023 2022 Change Tax Paid (235.3) (214.0) (21.3)
Gross Debt 16,293.8 16,145.7 148.1 CapEx/Investments/
Less: Cash 3,581.6 4,805.6 (1,224.0) Divestments (580.2) 984.8 (1,565.0)
Net Debt 12,712.2 11,340.1 1,372.1 Free Cash Flow to Firm
Less: Readily Marketable (FCFF) 215.4 2,698.9 (2,483.5)
Inventory (RMI) 6,044.3 5,636.2 408.1 Net Interest Paid (1,130.2) (749.5) (380.7)
Less: Secured Free Cash Flow to Equity
Receivables 1,888.6 770.0 1,118.6 (FCFE) (914.8) 1,949.4 (2,864.2)
Adjusted Net Debt 4,779.3 4,933.9 (154.6)
Equity (before fair value
adjustment reserves) 7,366.0 7,700.0 (334.0)
Net Debt/Equity (Basic) 1.73 1.47 0.26
Net Debt/Equity
(Adjusted) 0.65 0.64 0.01

22 olamgroup.com
 Strategic report

Strong liquidity position with diversified pools of capital

We maintained sufficient liquidity to support our working capital and CapEx requirements, with a total of S$21.3 billion in
available liquidity as at end-2023, including unutilised bank lines of S$9.7 billion.

Total borrowings and available liquidity

as at end-2023
(S$ million)
9,740 21,255

+4,961
16,294

6,550
1,889
6,044

9,744
3,582

Cash and RMI* Secured Unutilised Available Total

Short-Term Receivables Bank Lines Liquidity Borrowings
Fixed Deposits

Short-Term
Long-Term

In 2023, the Company and its operating groups refinanced Borrowing mix*
their borrowing facilities by securing revolving credit facilities Borrowing Mix** (%)
(%)
(RCF) and medium-term loans that also align with their 100 100
Purpose: 13.0 11.0

• ofi secured a two-year loan facility aggregating

US$700.0 million comprising an RCF tranche and a term 69.0 70.0
loan tranche.
• ofi completed the syndication of a medium-term samurai
loan facility of JPY 59.0 billion (approximately
18.0 19.0
US$420.0 million). This comprises a five-year tranche of
JPY 10.5 billion and a three-year tranche of JPY 2022 2023
48.5 billion for refinancing of ofi’s existing loans and Debt Capital Markets
general corporate purposes. Bank Syndication
• ofi issued a US$125.0 million of five-year and seven-year Bilateral Banking Lines
floating rate notes via a private placement to US investors, * Excludes capital securities
where proceeds would be used by Olam Americas and its
US affiliates for refinancing and general purposes.
• ofi obtained a multi-tranche sustainability-linked facility
aggregating US$1,750.0 million and comprising an RCF
and a three-year term loan for refinancing and general
purposes. The interest margin on the facility is linked to
the achievement of certain sustainability targets and
could reduce if these targets are met.
• Olam Agri secured a US$615.0 million three-year facility,
where proceeds will be applied towards refinancing of its
existing loans and general corporate purposes.
Post 2023, ofi issued five-year US$50.0 million floating rate
notes in a private placement to an institutional investor.

Olam Group Limited Annual Report 2023 23

Group CFO’s review

Performance by operating group

A management discussion of the performance by operating group and segmental review and analysis is found within the
relevant operating groups section.

Segment Sales Volume ('000 MT) Revenue EBIT Invested Capital (IC)1 EBIT/IC
S$ Million 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022

ofi 3,284.3 3,585.1 15,583.4 16,391.7 829.3 746.5 11,754.3 11,545.9 7.1% 6.7%
Global
Sourcing 2,714.4 2,974.2 9,837.9 11,077.5 295.2 339.0 4,218.8 4,475.5 6.8% 7.4%
Ingredients &
Solutions 1,239.3 1,270.3 8,285.6 7,532.7 534.1 407.5 7,535.5 7,070.4 7.3% 6.2%
Inter-
Segmental
Sales (669.4) (659.4) (2,540.1) (2,218.5) – – – – – –
Olam Agri 39,540.7 38,175.6 31,319.7 36,904.0 967.7 857.7 5,457.6 5,123.5 18.3% 16.5%
Food & Feed
- Origination &
Merchandising 33,251.3 31,785.7 21,731.1 24,811.6 224.4 251.9 1,348.7 1,387.0 16.4% 23.2%
Food & Feed
- Processing &
Value-Added 4,135.4 4,031.7 4,501.9 4,873.9 591.2 423.0 2,195.3 2,306.7 26.3% 19.3%
Fibre,
Agri-
industrials &
Ag Services 2,154.0 2,358.2 5,086.7 7,218.5 152.1 182.8 1,913.6 1,429.8 9.1% 9.6%
Remaining
Olam Group 1,272.4 1,112.6 1,368.9 1,605.3 (25.1) 4.5 2,538.2 2,663.1 (1.0%) 0.2%
De-Prioritised/
Exiting Assets 128.5 169.4 205.0 291.1 (11.3) 13.9 523.0 551.3 (2.1%) 2.5%
Continuing/
Gestating
Businesses^^ 807.3 688.2 1,004.1 1,213.0 52.8 52.2 1,991.0 2,097.5 2.6% 2.3%
Incubating
Businesses 336.6 255.0 159.8 101.2 (66.6) (61.6) 24.2 14.3 n.m. n.m.

Total 44,097.4 42,873.3 48,272.0 54,901.0 1,771.9 1,608.7 19,750.1 19,332.5 9.1% 8.4%
^^ Including corporate adjustments

For more detailed information on For more detailed information on For more detailed information on
ofi financial results please see Olam Agri financial results please Remaining Olam Group financial
pages 31 to 33. see pages 42 to 49. results please see pages 60 to 61.

1. Invested Capital excludes Gabon Fertiliser Project (2023: S$244.8 million; 2022: S$239.5 million).

24 olamgroup.com
 Strategic report

Working to inspire new concepts that make it real, from plant to palate

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 consumers
can enjoy the healthy and indulgent products they love. Consisting of industry-
leading businesses - cocoa, coffee, dairy, nuts, spices and the recently created
Food & Beverage Solutions platform - it partners with customers to co-create
solutions that anticipate and meet changing consumer preferences as demand
increases for healthier food that is traceable and sustainable.

ofi.com

Olam Group Limited Annual Report 2023 25

ofi

Be the change for good food

and a healthy future
In 2023, we delivered solid earnings growth alongside continued execution of our strategy,
to pivot towards a more solutions-led and customer-centric organisation. ofi EBIT grew
11.1% year-on-year to S$829.3 million led by Ingredients & Solutions, and EBIT over average
invested capital increased from 6.7% in 2022 to 7.1% in 2023. This demonstrates the
strength of ofi’s integrated portfolio, even as the global macroeconomic environment
remained challenging. Our performance is testament to the dedication and expertise
ofofi’s teams, who go the extra mile to ‘make it real’ every day, for our customers,
our partners and each other.

Market conditions were challenging and changing

throughout 2023. The first half of the year broadly saw
resilient end-consumer demand though there were delays
in call-offs as our customers managed down their pandemic
inventory build-up. De-stocking headwinds faded in the
second half of 2023, but markets began to show some signs
of uncertain consumer demand in some categories such as
packaged nuts and home-pantry spices, as well as products
such as chocolate that saw sharp input price increases as
cocoa bean prices surged to multi-decade highs. China’s
economic re-opening also remained soft. Thankfully, supply
chain disruptions eased towards normalised levels and logistics,
packaging and energy prices retreated from 2022 peaks,
even though labour and other costs continued to be elevated.
ofi’s 2023 results effectively demonstrate our ability to pass
through inflationary costs with the expected lag, particularly
relating to the 2022 energy price shock. Raw material markets
continued to be volatile in 2023, with price trends varying
significantly between products. However raw material price
volatility is business as usual for ofi, with well-established
processes to monitor, control and hedge input prices in a
timely manner. Our product teams successfully navigated
these challenging market dynamics as reflected in our EBIT
performance, demonstrating ofi’s strength as a vertically
integrated operator.

A Shekhar
CEO, ofi

26 ofi.com
 Strategic report

While our underlying performance was strong, we did take

an exceptional one-off cost from our Australian almond
orchards in the first half of 2023. This was due to a truly
unprecedented event that impacted the entire Australian
almond industry, resulting in a materially lower crop yield for I am pleased with our 2023
the 2022/23 growing season. The almond industry saw
reduced bee activity during pollination and unseasonably
performance and strategic delivery,
cold, wet conditions during the growing and pre-harvest as we continue to pivot towards a more
periods. Our crop experts and agronomists concur with solutions-led and customer-centric
external analysis that the 2023 crop was an aberration and organisation. We inaugurated new
the orchards are expected to see yields return to their normal
levels from 2024 and beyond. This is in line with the facilities, expanded capacity and
Australian Almond Board, whose 2024 crop estimate1 expects invested in our plants in multiple
164,700 tonnes for the industry, 59% above the 2023 crop countries around the world. All of this
and 'a return to average type yields'. We have undertaken
strengthens our unique ingredients and
close assessment and scrutiny of our orchard trees and the
2023/24 crop development, and are confident of good tree solutions offering, which combines our
health and promising early indications for crop yields. world-class sourcing and sustainability
ofi continues to invest for the future with new manufacturing capabilities with increasing know-how
assets and enhanced capabilities in sustainability, digital, in application development to deliver
innovation and other customer-facing areas. We are comprehensive and integrated category
securing our core through targeted investments in proven
and attractive product platforms, combined with several
solutions to our customers. This capability
initiatives to increase efficiency and optimise cost and is something which evolving consumer
capital across the organisation. Simultaneously, ofi is trends and industry regulation make
investing in future growth vectors to expand our presence in ever more critical. I look to the future
attractive end-use categories and channels to continuously
enhance the support and value-add for customers. Each with great optimism and thank our
of these investments is fully aligned to the strategy to grow customers, colleagues, farmers,
our Ingredients & Solutions segment, delivering exciting, suppliers and local communities for their
value-added opportunities for our customers, supported
enduring partnership and commitment.
as always by our integrated supply chain that can offer
supply security, sustainability and traceability.
We strive for a zero-accident mindset through promoting
a safe work environment and uncompromising adherence
to operating procedures. Our operational excellence culture
focuses on improving all aspects of safety, quality, food
safety, customer focus and our costing value. When these
areas are improved, there is a natural ability to drive further
value in operations and supply chain efficiencies. In 2023,
our associates led over 300 improvement projects resulting
in cost refinements in those areas by more than 5% of our
conversion value. These results enabled ofi to combat some
of the inflationary effects that our business faced. We also
made continued significant investments in renewable energy
across our global operations network, supporting our
ongoing sustainability efforts.

1. 2024 almond crop estimate released (17 December 2023):

https://almondboard.org.au/2024-almond-crop-estimatereleased/
?v=6cc98ba2045f#:~:text=The%20Australian%20almond%20crop%20
estimate,estimates%20from%20across%20the%20industry

Olam Group Limited Annual Report 2023 27

ofi

Key highlights ofi continued to innovate and adopt new tools to support our
sustainability strategy, and it has been rewarding to see this
recognised by various industry awards. For example, our
Volume EBIT/IC Carbon Scenario Planner (CSP) won the 2023 Sustainability

3.3 m MT 7.1% Innovation Award at Food Ingredients Europe, ofi’s second

year in a row receiving this prestigious recognition. Our
-8.4% +40 basis points Carbon Sequestration Monitoring tool was also shortlisted for
the Edie Net-Zero Innovation Award. For further detail on
EBIT Invested Capital these tools, see page 96. These tools support multiple ofi
programmes to decarbonise our supply chains, targeting our
S$829.3 m S$11.8 bn suppliers’ farm-level (Scope 3) emissions which make up
>95% of our total GHG footprint.
+11.1% +1.8%
In addition to creating and utilising new industry tools, ofi
Customers Employees continues to take measurable action to reduce our own
(Scope 1 and 2) emissions footprint. For example, two circular
11,000 ~18,000* biomass shell boilers were added to our cocoa-processing
factories in the Netherlands and Germany, growing the
existing network used in our cocoa factories in Brazil,
Côte d’Ivoire, Indonesia and Singapore. This has the dual
benefit of delivering cost savings while also reducing
greenhouse gas emissions associated with the production
of cocoa.
Other sustainability highlights from 2023 include our launch
of Dairy Tracks, the first sustainability goals for ofi’s global
dairy supply chain and operations. Also our second full-year
impact report for Coffee LENS, sharing progress achieved in
collaboration with customers and partners. We also
published our first ‘Nut Trails’ impact report, showcasing
12 months of progress data towards ofi’s 2030 cashew and
hazelnut sustainability goals. ofi’s progress under our Nut
Trails strategies was recognised for ‘Excellence in
Manufactured capital: Dairy in focus Sustainability’ at the 2023 INC Awards, the premier
ofi’s New Zealand dairy processing facility, commissioned international showcase of excellence for the nuts and dried
in 2023, will produce 90,000 metric tonnes of dairy fruits industry. For further detail on our product sustainability
ingredients like whole milk powder to meet growing strategies, see pages 37 to 40.
demand, targeting key customer applications in dessert, In 2023, we commissioned a review by Sustainalytics for ofi
bakery, beverage and confectionery categories. The next as an independent company, and I am proud that we
stage of investment will see further capability added achieved a very strong report, ranking us as the 3rd highest
to the facility to develop high-value dairy ingredients, company in the ‘Packaged Foods’ sub-industry. As a result,
expanding the range of ofi’s offering. ofi is recognised as one of the top performing companies
The new plant complements a suite of enhancements rated by Sustainalytics, and included on the Sustainalytics’
made to ofi’s dairy production facility and Ingredient 2024 Top-Rated ESG Companies List. We received
Excellence Centre (IEC) in Johor, Malaysia which favourable scores across the relevant categories, including
combined with our Customer Solutions Centre based for those metrics relevant to our inaugural sustainability-
in Singapore, enables us to co-create bespoke food linked loan. ofi secured its second multi-tranche
and beverage solutions for our customers. sustainability-linked facility in August this year, this time
aggregating US$1,750 million. The interest margin on the
Alongside these significant investments, we also launched facility is linked to the achievement of certain sustainability
our new sustainability strategy for our dairy business, targets and could reduce if those targets are met.
‘Dairy Tracks’ in 2023. It provides 2025 milestones and
a clear roadmap to 2030 for how we plan to reduce our Planning ahead for the long-term, ofi is finalising its vision
impact on climate change, maintain high animal welfare and strategy for sustainability, guiding the translation of our
standards and maximise the benefits of dairy products corporate Purpose into actions and underpinning our
for consumers. corporate strategy, to be a high-growth, sustainable,
ingredients & solutions business. We will launch our
progressive sustainability strategy, including 2030
ambitions, in 2024. See page 40 for more detail.

* primary workforce

28 ofi.com
 Strategic report

As well as creating the right conditions externally, we are We remain ready and committed to pursue the de-merger
focused on creating and maintaining a safe and inclusive and initial public offering of ofi on the premium segment
workplace for our people who are our most valuable assets. of the London Stock Exchange, with a concurrent listing in
We have continued to bring our company Purpose to life Singapore. We will retain flexibility on the listing sequence
through a unique ‘hearts and minds’ approach, helping with Olam Agri, as well as exploring other strategic options
employees understand and connect to our Purpose while to unlock value. We will continue to leverage scale and
embedding it deeply within product and function strategies expertise from the strong foundation of our Global Sourcing
to tightly interlace ofi Purpose and ofi strategy. We also operations, extract full potential from the continuing
launched a powerful new employee value proposition, to investments and acquisitions in Ingredients & Solutions,
always ‘be ofi’ - which represents our promise to our people and bring this all together by investing further in
and reflects the authentic experience of what it is like to work value-enhancing capabilities for ofi, to drive growth in 2024
at ofi. and beyond.
In summary, I am proud of the operational performance
A Shekhar
and strategic strides made in 2023, and we move forwards
CEO, ofi
in 2024 with great confidence to continue our progress.

At KIND, we're committed to helping our

consumers make the kind choice - for
themselves and for the planet. We’re excited
to collaborate with ofi on this innovative pilot
project investing in regenerative agriculture
research because we believe it is an important
first step in developing a more resilient and
sustainable supply chain for one of our top
ingredients. The learnings we get through the
KIND Almond Acres Initiative will be
instrumental in helping us make almond
Intangible capital: KIND Snacks farming better for our growers, better for our
partners with ofi consumers, and better for the planet.
Almonds are the lead ingredient in over 45 KIND
products, with KIND purchasing millions of pounds of
almonds each year. KIND have decided to test and
learn how to grow their number one ingredient more
sustainably by launching the KIND Almond Acres Caitlin Birkholz
Initiative. This introduces a mix of new technologies Sustainability Impact Manager,
with best practices from regenerative agriculture across H&W Platform at Mars
500 acres in California, where 80% of the world’s
almonds are grown. ofi owns the almond trees on the
project acres and is implementing the practices on the
ground in partnership with KIND.

Olam Group Limited Annual Report 2023 29

ofi

An integrated value-added
ingredients business

Ingredients & Solutions

Ability to provide complete package to customers - from single ingredients
to value-added finished products

Value-added Global Strong innovation Ecosystem Categories and

processing, manufacturing capabilities across partnerships and channels expertise
innovation and presence in both the value chain from co-creation with
co-creation origin and destination plant science to customers
markets customer solutions

va
lu
s

e-
ice

On
an

ad
sp

ds

e-s
ded
se
rsified o ring across
a nd

tr o

top,
rvi

solut
n g in
ng
Dive e, dairy, nuts

vertically integrate
c u st o m e r s g l o

ions with a glo

n o
ffe

v a t i o n cap
o ff e

ba
a
bal
a, c

da
ll y

ilit
fo
co

nd
ie s t
o
co

tp
rin

Global Sourcing
Supply chain expertise and global presence enabling differentiated
sustainability and traceability impact

Farming, origination Global footprint and Direct and indirect Sustainability Deep market
and sourcing presence in all key network of farmers and traceability at research and risk
origins globally the heart of business management
with social, expertise
environmental and
economic impact

30 ofi.com
 Strategic report

Double-digit EBIT growth amid EBIT

(S$ million)
challenging market conditions
A global leader in ingredients and at the forefront of food
and beverage consumer trends, ofi offers sustainable,
S$829 m
natural and plant-based ingredients and solutions for large,
+6.2%
attractive and high-growth end-use categories. +11.1%

Sales volume in ofi decreased 8.4% to 3.3 million MT, a

deliberate action to focus on the pursuit of selective 821 829
747
opportunities that enhanced earnings without compromising 692
returns in light of the uncertain macroeconomic backdrop. 36%
50% 45%
The decline was predominantly in the Global Sourcing 45%

segment at 8.7% while the Ingredients & Solutions segment

64%
declined marginally by 2.4%. Revenue declined by 4.9% to 50% 55%
55%
S$15.6 billion as strong pricing growth particularly in
Ingredients & Solutions partially offset the lower volumes.
2020 2021 2022 2023
Restated Restated
EBIT increased 11.1% to S$829.3 million on the back of a
strong performance from the Ingredients & Solutions segment EBIT/MT (S$) 212 223 208 253

that grew 31.1% to S$534.1 million, as the business 10.9%

successfully passed through cost inflation in input raw
Adjusted EBIT (S$) 704 849 789 874
material and other costs while also leveraging its recent
investments. This was partially offset by the reduced
contribution from the Global Sourcing segment where EBIT
declined by 12.9% to S$295.2 million on reduced volumes.
Invested Capital
Adjusted EBIT grew by 10.9% to S$874.2 million.
(S$ million)

S$11,754 m
+9.5%
+1.8%

11,546 11,754
10,762
In 2023, ofi delivered solid double-digit
8,943
EBIT growth and enhanced returns, 39% 36%

fuelled by strong performance in the 57% 43%

Ingredients & Solutions segment.

61% 64%
We capably managed cost inflation 43% 57%
in raw materials and other expenses,
successfully passing these through, 2020
Restated
2021
Restated 2022 2023
and leveraged the potential of our EBIT/IC 7.9% 8.3% 6.7% 7.1%
recent investments. Our businesses Global Sourcing
adeptly navigated uncertain Ingredients & Solutions
macroeconomic conditions and made a
deliberate choice to focus on selective
volume growth opportunities that
maximise both earnings and returns.

Rishi Kalra
CFO, ofi

Olam Group Limited Annual Report 2023 31

ofi

Invested capital was largely flat at S$11.8 billion, 1.8% higher EBIT
than the prior year driven by increased fixed and working (S$ million)
capital deployed in the Ingredients & Solutions segment as
new facilities came onstream. The increase was partly offset S$295 m
by lower capital deployed in the Global Sourcing segment -1.7%
from a combination of lower volumes and tight controls on
-12.9%
operational cycle time. 413

339
EBIT on average invested capital (EBIT/IC) for the year 311 295
increased from 6.7% in 2022 to 7.1% in 2023, reflecting the
strong EBIT growth and tightly-controlled invested capital.

Global Sourcing
Global Sourcing reported an 8.7% decrease in sales volume
to 2.7 million MT in 2023 as the business was selective in 2020 2021
Restated Restated 2022 2023
prioritising opportunities that enhanced margins and returns.
The main declines were in cocoa beans and in the dairy and EBIT/MT (S$) 102 138 114 109
cashew supply chain businesses, partially offset by growth in -12.7%
green coffee. Revenue decreased by 11.2% to S$9.8 billion
from reduced volumes together with softer coffee and dairy Adjusted EBIT (S$) 318 419 345 301

prices for most of the year.

Segment EBIT decreased by 12.9% year-on-year to
S$295.2 million. While the coffee and cocoa businesses did Invested Capital
well to navigate the market volatility, the US peanuts business (S$ million)
faced operational challenges and the dairy supply chain
business was impacted by China’s muted re-opening. Adjusted
EBIT in Global Sourcing decreased 12.7% year-on-year to
S$4,219 m
S$301.1 million. -6.3%

The segment EBIT excludes the exceptional impact on ofi’s 5,134 -5.7%
4,673 4,476
Australian almond orchards, which arose due to the 4,219
unprecedented, materially lower crop yield that affected the
entire almond industry in Australia for the 2022/23 growing 3,217 2,792 2,694
2,467
season. Going forward, ofi’s crop experts and agronomists
concur with external analysis that the 2023 crop was an
aberration and the orchards are expected to record 1,917 1,881 1,782
1,752
improved performance in 2024 and beyond, thanks to lower
input costs, affordable water prices and high water 2020 2021
Restated Restated 2022 2023
availability, better climatic conditions and improving export
prices. EBIT/IC (%) 6.1% 8.4% 7.4% 6.8%

Invested capital decreased year-on-year by 5.7% to Working Capital

Fixed Capital
S$4.2 billion, from a combination of lower volumes and tight
controls on operational cycle time.
EBIT/IC for the year decreased from 7.4% in 2022 to 6.8% in
2023 as the rate of EBIT decline was greater than the
reduction in invested capital.

32 ofi.com
 Strategic report

Ingredients & Solutions EBIT

Ingredients & Solutions reported a decrease of 2.4% in
(S$ million)
sales volume to 1.2 million MT in 2023, driven largely by
a combination of lower demand and de-stocking in the US S$534 m
Industrial Spices business. This was partly offset by growth
in roast and ground coffee, dairy ingredients, and private +11.9%
+31.1%
own-label nuts. Revenue grew by 10.0% to S$8.3 billion, 534
primarily driven by strong price growth which more than
compensated for the lower volumes. 381
408 408

Segment EBIT increased by 31.1% year-on-year to

S$534.1 million, driven by strong EBIT per MT improvement,
reflecting successful pass-through of input and other cost
inflation, as well as successful commissioning and execution
of recent investments. Cocoa and coffee were the primary
drivers of Ingredients & Solutions EBIT growth with improved 2020 2021
Restated Restated 2022 2023
cocoa-processing margins despite some softening in
end-consumer demand for chocolate, while soluble coffee EBIT/MT (S$) 386 327 321 431
demand remained strong and was further supported by the +29.2%
shifting consumer preference in favour of private label.
Industrial Spices in the US were impacted by consumer Adjusted EBIT (S$) 386 431 444 573

de-stocking, though this was largely offset by improved

performance from Olde Thompson (OT). Adjusted EBIT
grew 29.2% to S$573.1 million.
Invested Capital
The OT business which was acquired during the first-half (S$ million)
of 2021 had faced challenges in the initial 18 months
post-acquisition due to margin pressures from supply chain
disruptions and constant inflationary pressures. The inherent
S$7,536 m
nature of the business model allows for such costs to be
passed through to customers - albeit with a lag - via new 25.5%
+6.6%
contracts that come up for execution. The annualised impact 7,536
of this pass-through effect was seen in 2023, particularly in 7,070

the second-half. Post acquisition - the new OT leadership 6,088

3,137 3,517
team had also focused on SKU rationalisation and improved
customer service levels, which generated operational 2,624
3,809
efficiencies and cost savings. As planned, the business also
1,954
extracted synergies particularly on the in-sourcing of raw 4,019
3,464 3,933
materials and packaging as well as warehousing, freight and
1,855
logistics, while revenue synergies are slightly behind forecast.
Overall, while the business is currently tracking slightly 2020 2021 2022 2023
Restated Restated
behind initial expectations, its long-term prospects remain
encouraging and the business does not show any indication EBIT/IC (%) 10.6% 8.2% 6.2% 7.3%

that may warrant a reduction in its carrying value. Working Capital

Invested capital increased by 6.6% to S$7.5 billion driven Fixed Capital
by increased fixed and working capital deployed as new
facilities came onstream.
EBIT/IC for the year increased from 6.2% in 2022 to 7.3%
in 2023, reflecting the strong EBIT growth which outpaced
the growth in invested capital.

Olam Group Limited Annual Report 2023 33

ofi

Investing for our future

ofi is investing for the future with new assets enhancing our
sustainability capabilities and development opportunities for
our people. We ‘secure our core’ through targeted investments
in proven and attractive sub-business units, combined with
measurable projects to increase efficiency and optimise cost
and capital across the organisation. At the same time we
invest in ‘future growth vectors’ to expand our presence in
attractive adjacencies that support our medium and long-term
growth ambitions. Our approach is always guided by our
strategy to increase the mix of higher-value ingredients and
solutions, becoming a more solutions-led, customer-centric
organisation while continuing to leverage the strong
foundation of our global sourcing footprint.

Securing our core

We have strengthened and focused ofi’s core portfolio Intangible Capital: Upcycled
in 2023 with successful delivery of several important chilli sauces
strategic investments, enacting targeted projects to
deliver measurable cost and capital optimisation and Combining insights and innovation, ofi is living our
working to capture the full potential from existing assets Purpose to provide good food (delicious sauces) and
to maximise returns. a healthy future (upcycled chilli pulp) through upcycled
chilli sauces. Upcycled foods use ingredients that otherwise
One of our most significant strategic investments delivered would not have gone to human consumption, and are
in 2023 is our New Zealand dairy processing facility. The both procured and produced using certifiable supply
demand for nutrition-rich functional dairy ingredients chains, and have a positive impact on the environment.
continues to grow at pace, particularly across the Middle
East and Africa. In November, ofi officially opened the first
phase of our new, state-of-the-art dairy processing plant
located in the dairy heartland of New Zealand - the Waikato
region in the north island of the country - employing around
60 people, the vast majority of whom are from the nearby
town of Tokoroa. Early performance has been strong, with
ramp-up to full production progressing on schedule. As we
continue to expand our dairy manufacturing capabilities and
innovation infrastructure, the new Tokoroa plant will become
part of a global network that spans major milk consumption
markets, such as Southeast Asia, China, the Middle East
and Africa.
The New Zealand facility complements earlier expansion of
our Malaysian dairy processing capacity which commissioned
a new milk powder dryer in September 2023, more than
doubling the production volume of functional dairy ingredients
Manufactured Capital: Brazil soluble
and fat-filled milk powder per year, in turn enabling ofi’s coffee facility
customers to formulate innovative applications at scale. In This new facility is strategically located in the Conilon
addition, the expanded on-site Ingredient Excellence Centre heartland of Espírito Santo and Southern Bahia where
(IEC) has new laboratory spaces with state-of-the-art we have strong relationships with farmers. Approximately
research and development equipment dedicated to supporting 1,200 personnel were on-site during peak project phases
customers seeking a customisable, tailored and cost-efficient and at full capacity we expect the site to directly employ
approach to application solutions in beverages, bakery approximately 260 employees.
and frozen dairy desserts. Working in close collaboration
with ofi’s Singapore Customer Solutions Centre (CSC)
and integrated across our global network of innovation
centres, the IEC’s new capabilities enable ofi to better
collaborate with brands, grocery retailers and food service
companies to create their next delicious and nutritious
product for consumers.

34 ofi.com
 Strategic report

Sustainability is a central component of the plant design. It

uses solar power and rainwater harvesting, and operates at
a high efficacy rate with strong energy and water consumption
practices and close to zero raw material wastage.
Another strategic greenfield investment delivered in 2023
is our Brazil soluble coffee facility. The site is strategically
located in the Conilon heartland of Espírito Santo and
Southern Bahia where we have strong relationships with
farmers and have been delighted to host several visits by
local government officials. Approximately 1,200 personnel
were on-site during peak project phases and at full capacity
we expect the site to directly employ approximately 260
employees. We are also proud to be partnering with the
Espirito Santo government on a five-year prisoner
rehabilitation programme for up to 50 inmates. The Intangible Capital: ofi's Carbon
programme sees participants offered work placements, Scenario Planner wins FIE 2023
with three already enrolled in 2023. The rehabilitation
programme empowers participants with job skills, rekindles Sustainability Award
dignity, and helps to break cycles of recidivism. It is a bridge ofi’s Carbon Scenario Planner (CSP) won the 2023
to social inclusion, reducing prejudice and inequalities. Sustainability Innovation Award at Food Ingredients
Both spray-dried and freeze-dried lines are commissioned Europe in Frankfurt. This is the second year in a row that
and operational licences have been granted. Customer ofi has been awarded this prestigious recognition. The
engagement has been strong with multiple buyer visits, CSP is a new digital tool developed to help food and
and the site is set to begin continuous production in 2024. beverage manufacturers model the impact of different
Successful trial production runs are currently taking place scenarios for reducing greenhouse gas emissions. The
concurrent with remaining civil construction activities tool is embedded into ofi’s sustainability management
of the canteen building, administrative block and campus system AtSource, which provides customers with data
landscaping. This facility complements our existing two sites and insights for use in reporting their environmental,
in Vietnam and Spain, extending our global presence in the social, and economic impacts.
important private label market.
In August, ofi opened a new herb processing facility in Egypt Future growth vectors
to service our global customer base for savoury and culinary We continue to develop and invest in our future growth
solutions. Providing the ideal growing conditions, Egypt is vectors, expanding our presence in attractive adjacencies
one of the biggest markets for processing, exporting and that support our strategy and medium to long-term growth
growing of herbs. The new ofi facility is expected to process ambitions. This can include entry into new geographies,
3,000 metric tonnes of herbs every year (basil, fennel, channels, products and categories where ofi can deliver
marjoram, parsley and dill) sourced directly from local additional value to customers by capitalising on our
farmers, and will also work closely with ofi’s global vertically-integrated expertise across our range of
innovation centres to create optimal solutions for its complementary products and solutions.
international customer base. Consumers are driving
demand for herbs either for cooking at home or a wide Continuing the strategy of growing our value-added
range of savoury and culinary category solutions including Ingredients & Solutions business mix, ofi implemented
ready-to-eat meals, processed meats, sauces and flavourings, the next phase of its customer-first strategy with the launch
and as standalone condiments. Herbs play an important role of a new commercial platform - Food & Beverage (F&B)
in contributing to food’s colour, fragrance, and taste, and Solutions. The new platform consolidates ofi’s current category
potentially as a flavour replacement to sodium and sugar. solutions capabilities and innovation infrastructure to better
With careful processing, dried herbs often retain a deeper, support a diverse range of customer requirements.
spicier flavour compared to their fresh counterparts, Those customers looking to co-create new consumer
providing a convenient, shelf-stable ingredient for bulk buy. products or identify new applications, particularly with
As such, choosing the right herbs - and where you acquire a combination of ofi ingredients, will be supported by ofi
them from - is crucial in terms of retaining integrity and F&B Solutions with its four customer solutions centres in
vibrancy. Our Egypt teams are focused on maintaining Amsterdam, Bangalore, Chicago and Singapore, as well as
strong relationships with the farmers in our supply chain, ofi’s consumer insights and strategic account teams based
advising on quality, while our innovation teams can around the world. Those customers seeking excellence in
demonstrate to our Consumer Packaged Goods (CPG), single ingredients, from sourcing to manufacturing, will
retailer and food service customers, the savoury and culinary continue to be supported by ofi’s five market-leading
opportunities available, including those in combination with product platforms in cocoa, coffee, dairy, nuts and spices.
our wider spices, nuts and dairy product portfolio.

Olam Group Limited Annual Report 2023 35

ofi

As the latest step in ofi’s journey to enhance its category

solution capabilities, we opened our new Customer Solutions
Centre (CSC) in Amsterdam, marking another milestone in
our journey to become a more solutions-led, customer-
centric organisation. New technical capabilities along with
our enhanced insights and expertise will support greater
partnership opportunities and help customers meet regional
needs, taste preferences and demand from consumers. The
CSC and its adjoining office will offer immersive experiences
and bring the very best of our ingredient capabilities to the
right audiences.
Elsewhere in Europe, ofi’s private label nuts manufacturer and
supplier Märsch has delivered an excellent 2023 performance, Intangible Capital: ofi’s Club Coffee
affirming our rationale for the 2022 acquisition. As a leading
private label manufacturer and supplier of natural nuts and Sustainable packaging wins Reuters
dried fruits to a long-standing customer base of key European Product Innovation Award
retailers, Märsch sits right at the heart of ofi’s strategy, A sustainable packaging solution created by Club Coffee,
building on our proven private label credentials and expanding part of ofi and one of North America’s largest coffee
our geographic presence and operating facilities in this roasters, has been recognised as a 'creative, appealing,
important and high-value channel. and practical solution to immediate business and societal
Underpinned by successful private label nuts operations in needs' at 2023’s Reuters Responsible Business Awards.
Vietnam, the US and Märsch in Germany, ofi was well AromaPak™ uses recyclable, paper-based packaging
positioned to make an entry into the private label and made from renewable, high-quality tree fibre from
co-manufacturing segment for Chinese retailers. Our private sustainably-managed forests. It was developed to
label nuts roasting and packing joint venture entered into address high volumes of packaging waste from coffee.
late-2022 with China’s leading online snacks retailer ‘Three Commenting on the replicability of the solution, the
Squirrels’, has had a good start and will serve one of the judges were 'most inspired by the potential impact this
world’s fastest growing markets for snack nuts. This can have across other food categories and sectors'.
investment in an attractive and high-growth Chinese nuts
market complements ofi’s global nuts portfolio of private
label facilities, strengthening our value proposition of being
a truly global, value-added nut supplier, with manufacturing
presence in the largest nut markets.
Our US private label spices and seasonings business Olde
Thompson, has made good progress this year driving improved
returns as contract price updates rolled through the year,
synergies were extracted, and management actions delivered
improvement in fill rates and capacity utilisation. Some
near-term macro pressures continue to be felt, with some
customers slowing down their contract call-offs. However,
long-term benefits and consumer shift towards spices as a
natural, healthy source of taste and flavour remain clear,
and the business is trending well against our investment
thesis path. Olde Thompson expanded ofi’s private label
portfolio while providing customers a flexible, end-to-end,
consistent, reliable and efficient supplier for spices, seasonings
and blends. By linking our global growing and sourcing
operations with Olde Thompson’s packaging and distribution
Intellectual Capital: New Customer
capabilities, we also add greater value to our customers. Solutions Centre in Amsterdam
We enable our customers to meet the increasing demand Amsterdam is a fantastic location for the CSC given
and sophistication of consumers wanting to know where the wealth of expertise and opportunity for partnerships
their food comes from, with traceability and transparency with customers and with the food innovation ecosystem.
in our ingredient supply chain all the way back to origin. The Netherlands - and especially Food Valley in
Club Coffee, one of Canada’s largest coffee roasters and Wageningen - is a regional, world‑class hub for food
packaging solutions providers to the ‘At Home’ segment, innovation, and ofi will increase its collaboration with
was ofi’s recent step into the coffee roasting and grinding this R&D ecosystem and its partners.
adjacency, increasing our range of private label solutions.
The combination of Club Coffee’s expertise with ofi’s
sustainable sourcing and product traceability is a strong
value addition for customers. We are pleased with the
integration and long-term potential of the business.

36 ofi.com
 Strategic report

Sustainable choices in ofi

ofi is finalising its vision and strategy for sustainability, led by our Purpose to ‘be the change
for good food and a healthy future’. We aim to grow, source and produce ingredients that
are good for consumers, farmers and the world around us. We will launch our progressive
sustainability strategy, including 2030 ambitions, later in 2024.

We believe that healthy, natural food is possible when people

working in the food systems prosper and contribute to the
restoration of the living world. Which is why, through our
sustainability strategy, we will be setting ourselves high
standards with ambitious targets, so that we can offer
sustainable choices to our customers. Connecting our customers
to the people and places behind their products is essential to Sustainability insights are provided to customers
make our sustainability ambitions real. Together we can help with AtSource, ofi’s proprietary B2B sustainability
feed the growing appetite for naturally good food.​ management system. AtSource delivers a differentiated
customer proposition through a three-tier solution,
Our sustainability strategy will translate our Purpose into with each level providing increasingly-enhanced
actions and underpins our corporate strategy to be a data, metrics, insights and impact. In this way,
high-growth, sustainable ingredients business. Through customers can upgrade to receive more granular
our local businesses across the globe we seek to enhance data and insights to better inform and collaborate
farmers’ livelihoods, safeguard human rights, achieve on more ambitious action plans and programmes
net-zero Greenhouse Gas (GHG) emissions by 2050, to support their particular areas of sustainability
and regenerate the living world in farming landscapes, focus. To read more, visit atsource.io.
with impactful targets supported by verified traceability,
data and insights supplied through AtSource, our sustainability
management system. All so that we can offer sustainable
choices to our customers and feed the growing appetite for
naturally good food. We will launch our progressive sustainability
strategy, including our 2030 ambitions, later in 2024.

Olam Group Limited Annual Report 2023 37

ofi

Stakeholder engagement and materiality Double materiality process followed

assessment
As we develop our activities and targets to deliver positive
impact across our focus areas, we want to ensure our new
sustainability strategy is aligned with the expectations of ESG topic identification
stakeholders, and that it develops in the right direction given Using an appropriate sustainability risk universe, including 108 different
the backdrop of rapidly-changing regulatory requirements. topics, we identified all the topics relevant to ofi and the sector.
The ofi Group’s double materiality assessment allowed us to
fine-tune our understanding of the sustainability issues and
opportunities most material to our key stakeholder groups,
and therefore most strategic for our business. The double ofi topic identification
materiality assessment acknowledges that risks and
opportunities can be material from a financial and non- Identified 13 important sustainability topics to ofi through primary and
financial perspective and that companies must manage and secondary research.
• Primary research: Interviews with internal and external stakeholders
take responsibility for their impacts on people, society and
(including customers and NGOs).
the environment. In essence the assessment ensures that a • Secondary research: Media review and a review of WEF’s Global
company does not just focus on the areas where it can have Risks Report, SASB, Sustainalytics, MSCI, DJSI, investors and
the greatest impact, but also considers where it is being six peers.
impacted by different risks and opportunities.
As part of the double materiality assessment, several external Full list of 13 important sustainability topics identified:

ESG reporting frameworks, thought leadership documents, • Economic Opportunity • Water

industry rankings and indices were reviewed to understand • Diversity & Inclusion • Healthy Soils
the impact of specific ESG topics in the agriculture and • Education & Skills • Packaging & Waste
• Human Rights • Traceability
ingredients sectors. This was paired with a peer benchmarking
• Nutrition & Health • Supplier Engagement
review to understand which material topics our peers are • Climate Action • Verification
focusing on. In addition, research was conducted to consider • Ecosystems & Biodiversity
the topics ofi’s current investors and some of the largest
global investment companies prioritise when evaluating ESG.
Recurring themes from the stakeholder engagement include:
human rights, raw material traceability across the entire
value chain, farmer livelihoods, climate action and Topic confirmation
biodiversity and land use.
Using the 13 topics identified in the topic identification stage, we
validated and challenged these with stakeholders to identify five key
focus areas:
Impact on society
& environment

Critical

Very
important

Important
Impact on the business

Benchmarking

Benchmarked the double materiality results against external reporting

requirement to ensure appropriateness.

38 ofi.com
 Strategic report

Full list of 13 important sustainability topics identified

Prosperous Thriving Climate Regenerating the Supply Chain

Farmers Communities Action Living World Excellence

Economic Opportunity Human Rights Climate Action Ecosystems & Biodiversity Traceability

Diversity & Inclusion Nutrition & Health Water Verification

Education & Skills Healthy Soils Supplier Engagement

Packaging & Waste

Focusing in the double materiality matrix allowed us to Why do we consider these 13 topics
identify the topics that are in the ‘critical’ impact and risk/ to be important to ofi?
opportunity category, identifying areas where ofi needs
to focus the majority of its attention to have the greatest All 13 topics are important to our business and are the areas
impact, mitigate the largest risks and capitalise on the best we believe we can have the greatest positive impact on the
opportunities. In addition, the assessment aimed to forecast planet, society and our people. Our history of effective
the scale of the potential impact (represented by the size action for farmers, farming communities, climate and the
of each bubble).​ landscapes shows that we can be the change for the people
and landscapes that our business depends on. By developing
By performing the double materiality assessment, we were and scaling solutions that enable farmers to earn a living
able to identify that our initial list of 13 important sustainability income, protect children and workers, and accelerate
topics resonated strongly with our stakeholders’ vision. However, decarbonisation of our supply chains, we can offer more
when adding the additional lens of risks and opportunities, sustainable choices to our customers and drive positive
five distinct topics were elevated above the rest. impacts across our operations. ​
Going forward, these five topics will receive the most I​n addition, we are seeing a large increase in global regulations
attention, with ofi striving to actively enhance our on responsible business conduct, which will profoundly affect
governance structures, develop strategies, identify, monitor the way we do business. New laws, governing our imports to
and mitigate the risks associated with each of these five areas Europe especially, will transform the competitive landscape
while also striving to capitalise on opportunities presented. and drive change across our sector. What all the laws and
However, in staying true to our Purpose, ofi plans to monitor regulations have in common is that all require unprecedented
and report on the impact we are having across all 13 traceability from end-product back to farmer-level/plot of
important topics, setting targets and challenging ourselves land. In addition, companies will be required to perform a
to ‘be the change for good food and a healthy future’. thorough risk assessment along their full supply chain
and will have to integrate due diligence into all their
corporate policies. ​
Human
ofi’s impact on society & environment

Rights Together with increasingly active enforcement on human

Economic
rights and an expectation of tightening laws on carbon,
Opportunity
pollution and waste, these stringent requirements mean that
we must move faster than ever before on traceability, human
rights, and environmental due diligence to remain relevant.
Our customers rely on our capacity to deliver sustainable
products. Together we can build mutually beneficial
Ecosystems Traceability
& Biodiversity
partnerships to deliver for ofi while striving to offer sustainable
choices for customers by helping farmers prosper and
communities thrive within regenerated landscapes.
Climate Action
Education
& Skills

Diversity &
Inclusion
Supplier
Engagement Water

Impact on ofi

Olam Group Limited Annual Report 2023 39

ofi

Impact across our value chain

Below we map where our important sustainability topics occur across our value chain, and categorise those impacts as high,
medium or low based on their potential to be both positive or negative.

Processing,
Important topics Farming Sourcing Manufacturing Distribution Customer Consumer
& R&D

Economic Opportunity

Human Rights

Climate Action

Ecosystems & Biodiversity

Traceability

Nutrition & Health

Education & Skills

Diversity & Inclusion

Water

Healthy Soils

Packaging & Waste

Supplier Engagement

Verification

Level of impact
High Medium Low

ofi’s sustainability strategy​

Building on our extensive sustainability impact operations,
and reflecting the double materiality assessment performed,
we are planning to launch a dedicated sustainability strategy
for ofi in 2024.​
Linked to each of our five most material topics, we aim to fully
understand the risks that ofi is exposed to, as well as the
opportunities to be capitalised upon. In addition, ambitious
targets will be set, allowing our teams to understand and get
behind the organisational goals that we are striving to achieve,
while metrics will be instilled to measure and track our
performance against the targets. Strategies will also be
developed to showcase how we plan to achieve success
across different time horizons. Finally, we plan to enhance
our governance structures, building on regulatory guidelines
and best practice with the ultimate goal of building a more
responsible and resilient organisation.
Over the course of 2024 we have much to do, and we look
forward to tackling this exciting next chapter with our new
sustainability strategy.

40 ofi.com
 Strategic report

Transforming food, feed and fibre to cultivate

a sustainable and food-secure future
Olam Agri is a market leading and differentiated global food, feed and fibre
agri-business focused on high-growth emerging markets with a proven track
record of delivering high growth, high capital efficiency and high returns.
Our products and services include grains and oilseeds, wheat milling and pasta,
animal feed and proteins, edible oils, rice, specialty grains and seeds, cotton,
wood products, rubber, freight management and risk management solutions.
We unlock value for customers, enable farming communities to prosper
sustainably and strive for a food-secure future.

olamagri.com

Olam Group Limited Annual Report 2023 41

Olam Agri

Resilient EBIT growth in 2023

Olam Agri posted a resilient, double-digit EBIT growth in 2023 against the backdrop of
heightened geopolitical and macroeconomic risks impacting our industry, including the Red
Sea shipping crisis, continued disruptions of trade flows from Russia and Ukraine, economic
slow-down in post-pandemic China, and devaluation of local currencies in emerging markets.

Sales volume grew by 3.6% or 1.3 million MT to 39.5 million

MT (2022: 38.2 million MT) as volume growth in Origination
& Merchandising and Processing & Value-Added in Food &
Feed more than offset lower volumes in Fibre, Agri-Industrials
& Ag Services. However, revenues decreased by 15.1% to
S$31.3 billion (2022: S$36.9 billion) as commodity prices
across most products, including soy, corn, wheat, edible oils,
cotton, and rubber, fell in 2023 from their highs in 2022.
EBIT grew by 12.8% from S$857.7 million in 2022 to
S$967.7 million in 2023, reflecting the impact of reduced
costs of sales on Olam Agri as commodity prices and input
prices fell year-on-year. Usually, increases in interest cost
is passed on to the market in the form of higher selling prices,
albeit with a lag, leading to margins adjustments. Segment
wise, contribution from Food & Feed - Processing & Value-
Added expanded by 39.8%, compensating for the lower
contribution from Fibre, Agri-Industrials & Ag Services (-16.8%)
and Food & Feed - Origination & Merchandising (-10.9%).
Invested capital grew by 6.5% or S$334.1 million, primarily
on the increase in invested capital from Fibre, Agri-Industrials
& Ag Services. EBIT/IC climbed from 16.5% in 2022 to 18.3% in
2023 with faster EBIT growth than incremental capital deployed.
We have a strong presence across emerging markets,
especially in Asia and Africa, and a broad and deep global
network of smallholder farmers and farming communities,
which positions us to serve and capitalise on meeting the
rising demand for food, feed and fibre products.

Key highlights

Volume EBIT
('000) (S$ million)

39,540.7 967.7
3.6% 12.8%

Sales revenue Invested Capital

(S$ million) (S$ million)

31,319.7 5,457.6
-15.1% 6.5%

Customers Employees Sunny Verghese

Executive Director,
8,400 ~10,000* Co-Founder & CEO

*primary workforce

42 olamagri.com
 Strategic report

2023 highlights

EBIT
(S$ million) I’m proud that Olam Agri continues to
build on our track record of delivering
S$968 m high growth, high capital efficiency
and high returns, and has become
+24.9%
+12.8% a long-term partner of choice for
968 customers and suppliers. At a time
858
753
23% when food security is becoming
497
30% increasingly important, we are well
34%
37%
placed to meet rising demand for
61%
37% 49% food, feed and fibre particularly
50%
in high-growth markets in Asia,
13% 29% 21% 16% Africa and the Middle East.
2020 2021 2022 2023
Restated
EBIT/MT (S$) 12 19 22 24
Food & Feed - Origination & Merchandising
Food & Feed - Processing & Value-Added
Fibre, Agri-industrials & Ag Services

Invested Capital
(S$ million)

S$5,458 m
+9.0%
+6.5%
5,458
5,242 5,124
15% 25%
4,211 27%
19%
40%
40%
44% 45%

45% 35%
37%
28%

2020 2021 2022 2023

Restated
EBIT/IC (%) 13.4% 15.9% 16.5% 18.3%

Food & Feed - Origination & Merchandising

Food & Feed - Processing & Value-Added
Fibre, Agri-industrials & Ag Services

Olam Group Limited Annual Report 2023 43

Olam Agri

Food & Feed - Origination & Merchandising Invested capital eased slightly from a year ago to S$1.3 billion
by end-2023 on reduced fixed capital which came down due
The Food & Feed - Origination & Merchandising segment
to the depreciation impact on the leased freight vessels. As a
achieved sales volumes growth of 4.6% to 33.3 million MT
result, EBIT/IC declined from 23.2% in 2022 to 16.4% mainly
in 2023 (2022: 31.8 million MT), mainly due to the recovery
on the lower EBIT performance
in grains and oilseeds traded volumes and higher edible
oils volumes which more than offset the reduction in rice
volumes. Revenues fell 12.4% on lower prices across most
products, and EBIT declined 10.9% to S$224.4 million on EBIT
account of reduced contribution from edible oils and freight (S$ million)
when compared against the strong performance in these
businesses in 2022. S$224 m
+7.3%
In 2023, our grains business faced challenges amid trade
-10.9%
disruptions in the Black Sea and heightened cost of capital
due to a sharp rise in interest rates. In spite of these hurdles, 258 252
we were able to successfully fulfil our trade volume 224
182
commitments to our customers globally by tactically
leveraging alternative sources around the Black Sea,
initiating operations in France, and consolidating operations
in Spain. The contribution from edible oils was affected by
2020 2021 2022 2023
the significant drop in palm oil prices from the peak in 2022. Restated Restated Restated
The sharp turn in freight market conditions and the Red Sea EBIT/MT (S$) 5 8 8 7
crisis led to a weaker showing in our freight business.
To mitigate the impact of trade disruptions in the Black Sea
on the exports of grains, in particular wheat and corn, we Invested Capital
pivoted to alternative origination markets in other European (S$ million)
regions such as Romania, Hungary, and Serbia to ensure
consistent supply around the world. We deepened our
presence in Europe by consolidating our role as a key
S$1,349 m
distributor of grains in Spain, one of the continent’s largest
+18.2%
consumers. We also started sourcing from France in what -2.8%
marked a very successful initiation. 1,387
1,349
Addressing the challenge of high working capital outlays, we
focused on enhancing operational efficiencies and minimising 788
816
cycle times to optimise our working capital management. 1,191
1,199
Our trusted network of customers in Asia, Africa and the Middle 597
681
East held strong, while our business in the Kingdom of Saudi
Arabia flourished, particularly in the supply of wheat.
135 191 196 150
Transitioning into 2024, growing confidence in trade flows 2020 2021 2022 2023
Restated Restated Restated
in the Black Sea and improved operational conditions
EBIT/IC (%) 35.1% 32.2% 23.2% 16.4%
in that region are anticipated to augment liquidity and
trading prospects. Expected reduction in interest rates Working Capital
will ease pressures on cost of capital. Fixed Capital

Although rice traded volumes were affected by the challenging

market conditions with India imposing a ban on certain rice
varieties that created significant trade disruptions, our rice
business’s EBIT contribution was better than 2022. We were
able to fulfil our trade volume commitments to our customers
by pivoting to other origin countries that include Thailand,
Vietnam and Pakistan. We were able to meet the shortfalls in
rice in Asian markets, particularly Indonesia and the Philippines,
while expanding exports to Europe and the Middle East.
Our continued focus on transforming the rice supply chain
to become more sustainable allowed us to increase exports
of sustainable rice into Europe by meeting strict Minimal
Residual Limit (MRL) requirements. That stemmed from
successfully training smallholder rice farmers across the
three largest rice producing countries - India, Thailand and
Vietnam - on sustainable rice farming practices that
increased the production of MRL compliant rice.

44 olamagri.com
 Strategic report

Creating market value in rice value

chains across Southeast Asia
In Southeast Asian countries such as Vietnam and
Thailand, where farmers are primarily smallholders with
little access to quality inputs, agronomic advice, financial
services and machinery, very few are able to grow safe,
high-quality, sustainably‑produced rice without support.
To tackle this, we implemented the Market Oriented
Smallholder Value Chain (MSVC) programme, a large-
scale, sustainable rice cultivation project that is part of
a partnership with German development cooperation
Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ) GmbH and governments in Thailand and Vietnam.
The project trains smallholder rice farmers in climate-
smart farming practices and increases the production
of sustainable and high-quality rice in Thailand and
Vietnam, which are leading rice-exporting countries. As of
2023, over 30,000 farmers have received training in
sustainable rice cultivation practices, reduced their
greenhouse gas emissions, and increased their incomes
by up to 20%. Building on its success, we are now looking
to expand the programme to India and Nigeria.

Olam Group Limited Annual Report 2023 45

Olam Agri

Food & Feed - Processing & Value-Added

Food & Feed - Processing & Value-Added continued to deliver
strong results in 2023. Sales volumes were 2.6% ahead of
those achieved in 2022, although revenues declined 7.6%
due to the impact of the naira depreciation on our Nigerian
operations. EBIT for the segment was S$591.2 million,
a 39.8% growth for the year.
Segmental EBIT per MT was S$143 in 2023 (2022: S$105)
compared with the historical EBIT per MT of between S$58
and S$105 during 2020-2022.
Invested capital declined by 4.8% S$2.2 billion in 2023 due
to the reduced working capital utilisation from lower input
Intellectual Capital: Meeting market prices, particularly for wheat milling. As a result, EBIT/IC for
demand for low-carbon rice the segment reached 26.3% in 2023 (2022: 19.3%).
Working alongside Nice Rice, a sustainably farmed rice In spite of a volatile wheat market and currency headwinds
brand, we are meeting market demand for low-carbon in Ghana and Nigeria, our wheat milling and pasta business
rice and to make regenerative agriculture commercially performed strongly, recording one of the best years in our
feasible. In India, we are working with smallholder farmers history. We continued to benefit from improved operating
to adopt the alternative wetting and drying method, which leverage and lower input prices as wheat prices receded from
reduces greenhouse gas emissions in rice farming. highs in 2022, with higher margins year-on-year.

In Africa, we are actively participating in the local rice milling EBIT

business, buying paddies in Ghana and expanding our (S$ million)
presence in Côte d'Ivoire. This approach aligns with the local
governments' initiatives to boost domestic rice production,
contributing to food security and economic development.
S$591 m
Looking ahead to 2024, we expect to enhance our presence
+33.1% +39.8%
in the rice supply chain by deepening our presence and 591
integrating further into the processing of rice in India,
Thailand and Vietnam. This strategy aligns with the goal
423
of maintaining and growing overall volumes while adapting
to changing market dynamics. We will continue to boost the
275
production and export of more sustainable rice by scaling 251
up the training of smallholder farmers in these markets.
Our pulses business performed well in spite of stock
restrictions imposed by India which meant reducing
thousands of tonnes to the maximum allowed 200 metric 2020 2021 2022 2023
Restated
tonnes. This performance hinged on efficient execution EBIT/MT (S$) 58 61 105 143
and trading flexibility. It was supplemented by pulses
trading in other markets outside India, such as Australia
and Mozambique. Invested Capital
(S$ million)
Challenges in the superfoods business due to high prices
led to reduced demand. Despite these hurdles, we are
optimistic about continuous growth in volumes and further S$2,195 m
origin integration.
+5.7%
In 2023, our adaptability and ability to source globally have -4.8%
helped us mitigate trade disruptions, fulfil our trade volume 2,307
2,195
commitments to our customers, and position us well for growth, 2,074
1,859
along with diversification, market expansion and operational 1,062
816 972
efficiency. Navigating global complexities, our 2024 outlook 591
is cautiously optimistic, founded on our ability to source
globally, a trusted network of global customers, integration
1,268 1,258 1,245 1,223
in processing, and a commitment to operational excellence.

2020 2021 2022 2023

Restated
EBIT/IC (%) 13.3% 14.0% 19.3% 26.3%
Working capital
Fixed capital

46 olamagri.com
 Strategic report

Manufactured Capital: Grains business

reduces carbon footprint
Our grains business made significant strides in reducing its
carbon footprint through multiple projects focused on project
recovery, energy savings and reducing fuel consumption.
One notable achievement is the commissioning of a waste
heat recovery system at our largest pasta factory in Nigeria.
This system effectively recovers heat from the exhaust gases
of generators to heat process water, resulting in a 40%
reduction in fuel usage for hot water generation. This single
initiative is projected to yield a substantial carbon footprint
reduction of around 4,000 tonnes annually. Two other initiatives
implemented across multiple sites have collectively helped to
reduce a further 2,500 tonnes of greenhouse gas emissions.

Our strategy of market leadership and quality differentiation In Vietnam, we are strategically investing in upgrading our
played a crucial role in our success. Our operations across facilities with a focus on optimising the existing capacity,
Nigeria, Ghana, Senegal and Cameroon achieved outstanding ensuring full utilisation of our resources, and establishing
results, providing high-quality flour and pasta, solidifying our new R&D capabilities. We are making major modifications to
position as a market leader. The commitment to offering introduce feed for new species into our product portfolio from
premium products allowed us to increase or maintain market pangasius freshwater fish to tilapia and frogs.
share, even in the face of challenging economic conditions.
The increasing demand for affordable, yet nutritious sources
We remain committed to providing the best-quality flour in
of protein such as chicken and fish globally places our feed
every market segment.
business in a strong position for growth in the coming year.
The integrated feed & protein business reported a stronger We plan to double our outputs in 2024 through machinery
performance in 2023 post the expansion of the fish feed investments, aiming to boost aqua farmer yields. Collaborating
production capacity in 2022. In particular, our poultry feed with local authorities and farmers, we aim to provide training
results improved considerably compared with 2022 which on efficient feed management, and capitalise on rising
saw the adverse impact of avian influenza on the entire demand to increase production and varieties.
sector. Within our integrated feed and protein business, our
The rice, specialty grains & seeds business posted good
poultry feed business in Nigeria performed well with decent
growth in 2023. While the rice distribution franchise across
growth, contributing to a successful year for the business.
Cameroon, Ghana, Mozambique and South Africa held
Progress was due to timely coverage of raw materials and
steady, the pulses business expanded its origination network
provisions for adequate inventory. Aqua feed maintained a
into India and experienced healthy growth. The sesame &
good year with the addition of a second line with 150,000 metric
superfoods business continued to do better year-on-year
tonnes capacity to meet increasing demand from farmers.
since its restructuring in 2021. Despite the triple impacts from
We also started construction of an ultra-modern soybean
flooding in Nasarawa State, the naira devaluation and
crush facility which will enable us to increase the sourcing
subdued demand from high prices, our Nigerian rice farming,
of soybean directly supporting more local farmers.
milling and distribution business was able to maintain its
The key driver behind the success of our feed business in performance in 2023 compared with the previous year.
Nigeria is the increased demand for protein. Consumers are
actively seeking affordable protein sources and, due to their
short and efficient growing cycle coupled with our optimised
feed solutions, broiler meat and fish are the most economically
viable options. As we navigate the market's inflationary
challenges, we remain focused on affordability and efficiency.

Olam Group Limited Annual Report 2023 47

Olam Agri

Fibre, Agri-Industrials & Ag Services EBIT

(S$ million)
Fibre, Agri-industrials & Ag Services remained under pressure
in 2023, sales volumes declined 8.7% mainly on weaker
cotton volumes, and revenue was down by 29.5% year-on- S$152 m
year. EBIT decreased by 16.8% to S$152.1 million, with EBIT
per tonne at S$71 in 2023 (2022: S$78). +33.2%
-16.8%
Average cotton price in 2023 was significantly lower
220
and range-bound compared with highs in 2022, leading 183
152
to bearish trading conditions throughout 2023. Demand
for cotton was adversely affected by the economic crises 64
in Bangladesh and Pakistan (which slowed econonmic
activity and imports), the decline in demand from Chinese 2020 2021 2022 2023
Restated Restated Restated
mills, and the earthquake in Turkey which affected many
EBIT/MT (S$) 32 99 78 71
textile mills.
Our cotton business in Australia experienced a second year
of record performance with ginning volumes, cotton lint
trading and margins up, thus consolidating our position
Invested capital
as a market leader in the country.
(S$ million)
Our integrated ginning operations experienced significantly
reduced cotton production across West Africa, particularly S$1,914 m
in Togo and Côte d’Ivoire where yields had dropped by up
to 40% as a result of the jassids parasite infestation. +7.6%
+33.8%
In Côte d'Ivoire, we continued to work closely with almost 2,381
22,000 smallholder farmers from whom we source from, 1,914
to improve their yields and adopt more sustainable farming
1,537
practices. We helped more than 7,000 farmers adopt soil 1,430
1,955
erosion practices with technical support from the International 1,441
Finance Corporation (IFC); we collaborated with the African 1,070 1,009
Cotton Foundation (ACF) to train 1,500 farmers on composting,
crop rotation and cover crops to improve fertility, and 80% 467 426 421 473
of farmers use oxen to plough their fields to reduce soil
2020 2021 2022 2023
disturbances (minimum tillage). In 2023, our integrated Restated Restated Restated
ginning operations, which include smallholder farms and EBIT/IC (%) 4.9% 11.2% 9.6% 9.1%
our ginning facilities, got regenagri certification following
Working capital
the rigorous audit carried out by a third-party (appointed Fixed capital
by regenagri), which means we are able to offer full chain
of custody certification to our customers from production
to shipment.

Manufactured Capital: Increasing processing

and production
We increased our primary processing capacity by 14% and
kiln drying capacity by 20%. We successfully commissioned
the first phase of a scantling production unit at our
processing site of Pokola in the Republic of Congo.
Our wood business has been a pioneer in responsible forest
management, where we manage natural forest concessions
spanning 2.1 million hectares in the Republic of Congo to the
highest standards in line with the FSC®1.

1. Certified license numbers are: FSC-C014998 / FSC-C128941 /

FSC-C104637 / FSC-C156094 / FSC-C005457.

48 olamagri.com
 Strategic report

For most of the year, our wood business experienced a

steady growth in earnings until demand from key markets
pulled back in the latter half of 2023 as a result of industry
challenges due to high mortgage rates, inflation and lower
demand for new housing in the key customer markets of the
EU, the UK and the US. The business retained the continued
trust and volume assurance from our existing clients committed
to sourcing certified timber from sustainably-managed
forests. We buffered the slowing demand in 2023 by targeting
markets focusing on implementing energy rating legislation
for building renovations with certified timber products.
The business will continue to navigate headwinds by identifying
potential markets for new value-added products and
maintaining our commitment to maximising value-addition
at source and environmental footprint reduction. Our long-term
experience in resilient and traceable supply chains in our
sustainable forestry operations will help our clients to easily
transition from EUTR to EUDR compliance.
Our rubber business experienced a year of growth,
characterised by operational excellence, regional expansion,
a commitment to social responsibility, and strong marketing
Encouraging financial literacy among
and sales performance. women in Central and West Africa
We expanded origination access in Africa to cover more than The productivity and incomes of women play a crucial
85% of the continent's production by the 2023 year-end, role in improving food security and overall wellbeing
setting ourselves up for growth in 2024 and beyond. We also within rural families and communities. As part of our
expanded our reach in Asia and partnered with processors in commitment to empower rural women through education
Vietnam, Indonesia and Thailand with a focus on strengthening and training for self-sufficiency, we launched the Village
the supply chain to be more resilient, traceable and ensure Savings and Lending Associations (VSLA) programme
EUDR compliance. in partnership with the International Rescue Committee.
Since 2018, we have supported over 7,000 women in
Our rubber business continued to apply corporate the West African region by providing access to adult
responsibility and sustainability initiatives as a catalyst literacy training classes.
for business performance. In 2023, we improved water
accessibility for more than 5,000 residents in Satikran village In partnership with Cotontchad SN (CTSN), Solidaridad
in Côte d'Ivoire through the use of solar-powered hydraulic West Africa, and Sustainable Trade Initiative (IDH),
pumps, and provided equipment, education supplies and we have established more than 200 VSLA groups within
transportation support to more than 8,000 farmers as part our cotton-growing communities across Africa. These
of our supplier loyalty programme (Gouassou) in the region. groups improve access to finance and support the set-up
of income-generating activities, including the sale of local
Our fee-based risk management solutions performed better dishes, agricultural products, condiments and clothing
in 2023 compared to a year ago. They continue to at local markets. These provide access to simple savings
strengthen our offering of smart price risk management and credit to underserved communities which have
services, building on our experience in physical commodities no access to formal financial services, offer training
and financial instruments trading, and on our deep and bring access to economic opportunities.
understanding, of physical networks and risk.
In Senegal, we are fostering women's economic
Post 2023, as part of a strategic portfolio re-alignment, empowerment and financial autonomy by supporting
we have taken the decision to close the fund management beignet businesses through the Making African Mothers
business of our subsidiary Olam Fund Management. Independent & Entrepreneur (MAMIE) project. Launched
in 2019, it has benefitted 300 women, and 150 women
have been able to significantly increase their income.
We supply tools, equipment and our premium flour to
a network of 300 women, each of whom gain additional
advantages through our extensive distribution network.
This approach ensures they can access essential flour
and resources, and empowers local entrepreneurs to
create and grow successful enterprises in the dynamic
beignet market in Senegal.

Olam Group Limited Annual Report 2023 49

Olam Agri

Global regenerative agriculture programme

offers traceable cotton
regenagri™, a regenerative agricultural initiative focused
on supporting the transition to regenerative farming,
audits and certifies that the cotton farms and ginning
facilities under the programme follow their regenerative
agriculture standards. The programme builds on existing
sustainability initiatives to provide farmers with the tools,
resources and access to market opportunities they need
to mitigate climate risks, increase soil fertility, sequester
carbon, encourage biodiversity, and manage water and
energy use.
To strengthen the adoption of sustainable agricultural
practices and meet growing demand for traceable and
sustainably-grown cotton, Olam Agri has launched a
global regenerative agriculture programme. This is the
largest certified regenerative agriculture programme
in the cotton supply chain globally and covers the US
and Côte d’Ivoire with more to follow in 2024.
In Côte d’Ivoire, Olam Agri has already achieved
regenagri® certification for 100% of our directly-sourced
cotton, totalling more than 250,000 hectares (ha) of land,
20,000 farm enterprises, and both of our ginning facilities
that process 100,000 metric tonnes (MT) of seed cotton.
Since 2014, all of Olam Agri’s cotton sourced from Côte
d’Ivoire has also been Cotton made in Africa (CmiA)
certified. In the US, Olam Agri has received regenagri®
certification for 15,000 ha of farmland and three ginning
facilities producing 20,000 MT of cotton.

50 olamagri.com
 Strategic report

A strategy for growth

Develop new products - identify adjacent products
The global food and agricultural landscape is evolving driven that share customers, channels, costs and capabilities
by global population growth concentrated in Africa, dietary with our existing businesses. We intend to leverage our
shifts towards more animal proteins, growing resource origination and merchandising expertise to extend to
scarcity, and the impact of climate change on crop yields barley, soybean meal, vegetable oils and biofuels, as
and quality. Alongside growing political tensions, shifting well as marine freight and inland trucking.
trade flows and rising requirements around sustainability
and transparency are resulting in ever-greater importance Enhance our value chain capabilities - invest to
for food security. strengthen and expand our mid-stream value-added
processing and manufacturing capabilities, as well as
We continue to be well‑positioned to meet the growing selective upstream farming and downstream packaging,
demand for food, feed and fibre with our operating capabilities branding and distribution capabilities. Such as
in global origination, processing, trading, logistics, distribution expanding our capacities in wheat milling semolina and
and risk management, along with our deep understanding pasta production, aqua feed and broiler day-old chicks,
of food and agriculture in high‑growth markets setting us fortified rice and rice bran, cotton ginning, rubber
apart. Our differentiated asset-light model, combined with processing, and the manufacture of semi-finished and
our position as an independent trader, offers agility and cost finished wood products. In addition, we will seek to scale
efficiency to respond to shifting demand and trade flows. our freight management capabilities.
As a global food and agri-business, we enjoy a first-mover Enter new geographies - build on our current expertise
advantage in some of the highest-growth end-consumer and capabilities in our businesses to selectively enter
markets in Africa and Asia with high-quality supply chain new countries, both as origination and destination markets
assets and access. Our track record of operational excellence, such as the Middle East, North Africa and Southeast
longstanding customer and supplier relationships, and risk Asia. This includes exploring potential opportunities to
management capabilities means we are well‑positioned for expand our wheat milling and pasta, animal feed and
continued growth across our markets. rubber production, as well as replicating our successful
Capitalising and leveraging on our business capabilities, our South America model for processing specialty grains
distinctive entrepreneurial growth-focused culture, and on and seeds.
our position as a trusted partner, we have set a framework Expand into new businesses - leverage our current
for growth, of which more detail is provided to the right of strengths to expand into complementary capabilities
this page. and business opportunities.

Olam Group Limited Annual Report 2023 51

Olam Agri

To catalyse our growth, we continue to forge strategic

partnerships, as well as evaluate and pursue selected
acquisitions and opportunities to enter new markets,
drive growth in the markets where we already operate,
and increase our profitability and return on invested capital.
The sale of a 35.43% stake in Olam Agri to the Saudi
Agricultural and Livestock Investment Company (SALIC),
and the establishment of a Strategic Supply and Cooperation
Agreement will accelerate our access into the large and
high-growth Middle East markets and catalyse growth in
the Gulf region. The potential partnership synergies include
increasing trading volumes in key food staple commodities
such as barley, corn, wheat, rice, soybean, edible oils and
investments both upstream and downstream to support the
Kingdom of Saudi Arabia’s food security agenda.

Targeted investments for the future Manufactured Capital: Investing

We remain focused on unlocking value and enhancing in digital systems and technology
returns from our strategic investments. We continue to Our rice business has installed state-of-the-art bulk
integrate and optimise greenfield and brownfield projects x-ray machines at our facility in Thailand to specifically
to generate economies of scale and operational efficiencies filter out non‑ferrous contamination like plastic, glass
by ramping up production to full capacity, enhancing and other unwanted foreign material that are not
utilisation rates and extraction costs, and maximising caughtby the high gauss magnets installed currently
run-rate synergies. on the production line. Our wheat milling and pasta
facilities have introduced a new Q-trace digital system
We have invested to increase our integrated ginning
for internal and external alerts, and to date we have
capabilities in Chad and Côte d’Ivoire. Our third cotton gin
trained thousands of bakers in Africa on food quality
site at Kong in Côte d'Ivoire is expected to be operational by
and safety. In 2023, our edible oil refinery in Nigeria
year end 2024, which will further expand our overall
achieved RSPO certification, underlining our commitment
capacity and provide more farmers with access to quality
to sustainable palm oil practices.
infrastructure and services. Our focus on sustainability will
remain at the forefront of our operations, and we are During 2023, we expanded our aquafeed capabilities
committed to creating a long-lasting impact for the cotton into Vietnam with the acquisition of the aquafeed
farming community. business of CUU Long Fish Import-Export Corporation
for approximately US$15 million. A refurbishment to create
We commenced the construction of a soybean crush
a state-of-the-art production facility will increase capacity,
processing facility in Kwara State, Nigeria which is expected
strengthen R&D capabilities and raw material analysis,
to be operational during the second half of 2024. The
and enable an expanded range of products, such as frog
250,000 metric tonne MT facility will integrate with our
and tilapia feed, to cater to the local market.
existing animal feed operations and support the development
of the local soybean value chain to enhance productivity
of«local farmers. We have continued to strengthen our rice
milling operations with the installation of a rice bran facility Partnering with customers and suppliers
to extract value from the bran produced as a by-product of
the milling process. We expanded our rubber processing unit The trust and support of the communities where we work and
in Côte d'Ivoire which has enabled us to grow secondary operate is essential. We provide employment opportunities,
processing volumes by more than 60%. We are establishing contribute to economic prosperity, and provide essential
a new 88,000 MT per annum rubber processing unit which support to local communities.
should double our current processing footprint. Construction We continue to work closely and strengthen our relationships
is underway and expected to be complete by year end 2024. with customers and suppliers across our businesses and
Our wood business in the Republic of Congo has strengthened markets. We hosted forums with our grains customers in
its saw milling capabilities to better serve customer demand Nigeria as our flour, pasta and semolina brands continue to
for high-quality finished products. lead key categories, thanks to the support of customers in
bakeries and retail stores. This also marked the launch of the
latest addition to our product portfolio ‘Mama’s Pride Pasta’,
which expanded the range of products to meet the desire for
greater high-quality options amongst consumers.
Our Specialty Grains & Seeds business has continued to work
closely with its retail and private label customers to develop a
deeper understanding of their requirements and
expectations, which is helping us further evolve our systems
and processes to better meet their specific requirements.

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 Strategic report

Our wood business partnered with long-time customer Our strategic procurement is initially focused on logistics,
C.F. Martin & Company, a leading musical instrument plant materials and services, packaging, agricultural inputs,
manufacturer, to support our ongoing commitment to and corporate materials and inputs.
sustainable forestry. Together with the musical instrument
suppliers C.F. Martin & Company and Tonewoods and Advancing our commitment to safety
Forest-based Solutions, we continue to fund the Access to and quality
Medical Clinic for Indigenous Communities project to bridge The safety and wellbeing of our employees remains our
the communication gap faced by patients from the indigenous utmost priority and we have continued to focus on striving
communities in the Republic of Congo. Since the project’s to achieve a zero-incident culture across all our businesses.
inception in 2019, it has benefitted more than 14,000 indigenous To instil stronger safety culture across our operations, we
people providing treatment, free meals for patients, and continue to promote ‘See it, Say it, Stop it’ to raise awareness
accomodation for the families of patients. In 2023, our and encourage all employees to play their part in ensuring
customer Global Timber agreed to support access to medical they and their colleagues can go home safely to their family
facilities for these communities by financing the construction and friends every day. We recognise there is still progress
of a reception house for the families of the indigenous to be made and we are resolute to improve all aspects of
patients hospitalised in the medical clinic. safety and operational excellence. We are proud that
Working with our farmers and serving our customers is only advances made have been recognised, such as the award
possible by maintaining strong relationships with our for best HSE company of year 2023 in Cameroon by the
suppliers. To strengthen our partnership with key suppliers, Corporate Awards, a Pan-African human resource
we established a global Non-Commodity Procurement management programme.
function in 2023 to transform our approach to procurement Food safety and quality remains fundamental to what we do
by driving cost efficiency, achieving synergies with our and to our success. We continue to invest in our food safety
procurement partners and amongst our internal teams, and quality programme to ensure compliance with evolving
and enhancing working relationships to strengthen the regulatory requirements, as well as to enhance our own food
resilience of our supply chain. It is focused on delivering safety and quality practices to meet or exceed customers’
business‑oriented and value‑accretive capabilities to our requirements. Measuring the effectiveness of our processes
businesses - from managing central categories and strategic and systems through approaches, such as using scorecards
partner relationships to delivering process excellence - to gauge hygiene and safety levels, assess the performance
through four key objectives: of suppliers based on the Quality Index, and evaluating
• Value creation - delivering optimal value through customer feedback is helping us to focus our efforts in the
purchasing activities by leveraging technology, driving right direction and take corrective and preventive actions.
increased supplier collaboration, and introducing new
business models.
• Elevate performance - attaining high standards for
supplier performance, quality, on-time delivery and We implement quality and food safety management
service, and improving transparency and accountability. systems and standards, such as HACCP, FSSC22000,
• Build resilience - setting up contingency plans, integrating BRC, FSMA, Halal, Kosher. We continue to strive towards
risk management strategies, and adapting swiftly to ISO 22000 food safety certification for all our processing
market conditions. plants, as well as invest to enhance and safety and
• Enhance sustainability - integrating ESG practices quality of our products.
including sourcing from suppliers that follow sustainable
practices and prioritising eco-friendly products.

Intangible Capital: Gaining

industry recognitions
Our Riz Bijou rice brand in Cameroon was recognised as
‘Best Rice Brand’ for the second consecutive year by the
Fondation Camerounaise des Consommateurs, a leading
consumer rights organisation, while our rice business was
awarded the ‘Best Bulk Food Importer of rice in Cameroon’
by the Port Authority of Douala (PAD). Both awards recognised
our continued commitment to meeting the needs and
preferences of consumers across the country.
In addition, our sustainable rice farming projects in Thailand
and Vietnam were highly commended under the Reuters
Responsible Business Awards 2023’s Social Impact Award
category, which recognises companies that have demonstrated
measurable social impact and positive change.

Olam Group Limited Annual Report 2023 53

Olam Agri

Creating a more sustainable future

We continue to leverage and benefit from the sustainability advantage that we have built,
and we place a high priority on the environment and the local communities where we operate.

For more than 30 years, we have been at the heart of global

food and agriculture trade flows, connecting the world to key
commodities, improving access to food and nutrition and
transforming lives in communities.
To ensure our activities and actions are focused on delivering
positive impact in line with our stakeholders’ expectations
and requirements, we have undertaken a process to identify Governance
the material topics most relevant to our business. To do this Traceability &
Responsible Sourcing
we reviewed and assessed these by considering: Ethics & Compliance
• Our products and business activities, which include ESG Risk Management
farming and sourcing agricultural products, primary
processing and consumer products.
• Social and environmental contexts and risks, identified by
mapping sourcing regions against high-level indicators for Environment
nearly 30 topics including deforestation, water stress,
Healthy Soils
poverty, food insecurity and human rights. Climate Resilience
• The scale and scope of Olam Agri’s potential impact on Carbon Emissions
sustainability risks and opportunities in different businesses Forests & Ecosystems
and geographies based on the size and nature of operations. Water & Waste
Footprint
• Business sustainability priorities, identified through
consultative workshops and interviews with 100 business Social
Livelihoods
managers at all levels (operations management, business
Equity & Inclusion
heads, and global leadership).
Food & Crop Loss
• Expectations from sustainability certifications (such Safety & Health
as BCI, RSPO, FSC®, and SRP), financers (such as DFIs), Human Rights
disclosure frameworks (such as GRI, TCFD) and Food Security & Nutrition
benchmarks (such as World Benchmarking Alliance,
Oxfam Behind the Brands, and Sustainalytics).
• Peer company strategies, priorities and commitments.

54 olamagri.com
 Strategic report

Our priority areas • Future-proofing our supply base - ensuring continued

supply through climate resilient seeds and technology,
Guided by our Purpose to transform food, feed and fibre for
healthier soils and better livelihoods.
a more sustainable future, we have identified three key
• Enhancing products - offering certified sustainable
priority areas where we are focused on making a positive
products and micro-nutrient fortified foods to meet
impact - Climate, Nature and Livelihoods.
demand and access markets.
These priorities are vital to ensuring a sustainable future for • Reducing emissions - in our factories, farms and supply
global food and agriculture by supporting the stability of our chains, through renewable energy, improved soil fertility
climate, the health of natural resources and ecosystems, and management and forest conservation.
the wellbeing of farmers and communities. They set a clear • Sourcing responsibly - improving environmental and social
direction to implement activities and actions across our practices, and enhancing transparency and traceability
business towards a more responsible and sustainable approach across our supply chains.
that delivers positive impacts for our business such as:

Climate Nature Livelihoods

Reducing greenhouse To protect ecosystems, To improve farmer livelihoods
gas emissions biodiversity and watersheds and nourish the world

Olam Group Limited Annual Report 2023 55

Olam Agri

Sustainability across our value chain

In sourcing In farms and In processing For our people For our customers
landscapes communities facilities and consumers

We are turning our priorities into action by implementing In processing facilities

sustainability initiatives across our value chain, working While we enhance and expand our production capabilities
with farmers, customers, communities and partners, to and operations to meet the world’s growing demand for
make a lasting and tangible difference and towards the UN food, feed and fibre, reducing our environmental impact
Sustainable Development Goals. remains a significant focus of our operational excellence
In sourcing landscapes strategy to optimise our performance on emissions, waste
and water management, and energy. We are focused on
We are taking action to play our part to fight climate change
reducing our Scope 1, 2 and 3 greenhouse gas or GHG
and protect natural ecosystems. Our sustainability initiatives
emissions, integrating climate adaption and decarbonisation
aim to reduce greenhouse gas emissions, support the transition
into our commercial strategies which includes assessing
to nature-positive supply chains, and reduce post-harvest
carbon abatement technologies for our processing facilities,
loss. We are helping farmers build climate resistance by
scaling up existing efforts across our businesses, and
promoting good agricultural practices that optimise resources
collaborating to deliver systemic change.
and support access to high-yielding, drought-resistant seeds
for crops, such as wheat and cotton. We are implementing For our people
water stewardship to improve on-farm water use efficiency We believe food and agriculture can transform the lives
in at-risk locations and rethinking how water-intensive crops of our communities, consumers and employees around the
such as rice are grown. world. Our workforce nutrition programme aims to improve
Through agroforestry, conservation and restoration initiatives nutritional outcomes for our employees and support their
we are working to protect forests and biodiversity to ensure wellbeing as well as productivity at work in line with our
that business, people and nature co-exist and thrive together. membership of the Workforce Nutrition Alliance. We focus
on the physical health and wellbeing of our people, tailoring
In farms and communities local and regional initiatives to address their needs, while
Transforming agriculture starts with being a trusted partner investing to support a culture of continuous improvement
to farmers. We work to build long-term relationships based to empower employees to take decisive actions, supported
on responsible business practices and trust, with the aim to by globally recognised standards and best practice.
enhance farmer livelihoods and improve living conditions in
the rural communities where many of them live. By supporting For our customers and consumers
rural women with education and training initiatives, we are We are supporting efforts to improve access to affordable,
creating generations of entrepreneurs with the means to nutritious food and to providing essential nutrients by
improve their own livelihoods and contribute to the wellbeing fortifying staple foods including rice, flour and edible oils.
of their communities. By addressing nutrition, food-focused In partnership with the Global Alliance for Improved Nutrition
income diversification and crop support, our Food Secure (GAIN) and BoPinc, we have developed a nutrition training
Future programme aims to improve food security for 200,000 handbook to support community-based nutrition education
vulnerable farmer households. We aim to halve harvest and on essential food groups, dietary diversity and adult and
post-harvest losses in our smallholder supply chains by helping infant nutrition.
farmers implement practices such as mechanised tools which
have proven to reduce harvesting losses significantly in our
direct supply chains. We have established water, sanitation
and hygiene (WASH) guidelines to ensure that our employees
and thousands of people in farming communities have access
to clean water and sanitation.

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 Strategic report

Advancing regenerative agriculture Partnering to protect biodiversity and wildlife

There is no agriculture without a thriving natural environment in the Congo
and healthy soil. Agriculture is experiencing major crosswinds In March 2023, we announced a major conservation
- increasing demand from a growing global population and a milestone - Djéké Triangle, a 9,500 hectares forest area in
changing climate that is making farming more difficult. our concession, was integrated into the Nouabalé-Ndoki
The challenge is not just to grow more crops, but to do so National Park through the collaborative efforts of Olam Agri,
in a way that is regenerative for the natural environment. the Congolese government and the Wildlife Conservation
We are committed to advancing regenerative landscapes Society (WCS).
in our direct supply chains and our own farms by 2030. The Nouabalé-Ndoki National Park was created in 1993 and
Our approach prioritises soil health through long-term was first expanded in 2012 when Olam Agri offered part of its
collaborations and partnerships to promote a mix of effective Kabo concession (the Goualougo Triangle, an area of more
techniques and technologies, such as zero or minimum than 25,000 ha) to be integrated into the park. With the
tillage, drought-resilient seeds, crop diversification, improved addition of the Djéké Triangle, the park now covers a total of
nutrient management, cover crops, improved irrigation 433,400 hectares and is home to a diverse range of species,
methods, and composting/green manuring. These are including forest elephants, western lowland gorillas,
improving soil health, yields and reducing GHG emissions. chimpanzees, and other endangered species. The area is
Across our farms and estates - such as Australia, Brazil and crucial for the survival of many indigenous communities that
Nigeria - we monitor soil health and test our soils periodically depend on the forest for their livelihoods.
for soil pH, salinity, soil organic carbon, NPK (nitrogen,
phosphorus and potassium) and micronutrients to allow us For the past two decades, the innovative tripartite agreement
to adjust our own integrated soil fertility management. with the Wildlife Conservation Society (WCS) and the
Congolese government has allowed communities, biodiversity
Towards this 2023 goal, Olam Agri joined the COP28 Action and businesses to thrive side by side. The partnership supports
Agenda on Regenerative Landscapes initiative, alongside the employment of eco-guards, community liaisons and
private, public and civil society organisations, to aggregate, technicians to prevent illegal logging and poaching of animals,
accelerate and amplify existing efforts and new commitments and it has been instrumental in identifying and expanding
to transition large agricultural landscapes to regenerative crucial forest areas for protection. It has successfully removed
landscapes by 2030. Additionally, as a member of the 4,500 metal traps and released 86 seized animals alive,
Sustainable Markets Initiative’s Agri-business Task Force, fortifying the preservation of Congo's wildlife and biodiversity.
we are supporting a first-of-its-kind blended finance model Our wood business also partners with the Sustainable
to unlock financing to make regenerative farming financially Wildlife Meat project to encourage local people to adopt
viable and scalable for farmers. For more information on our sustainable hunting practices, thereby helping to reduce
work in this area please see our case study on page 50. bushmeat consumption.
Our benchmarks In 2023, our wood business launched a new scientific project
We also engage through sustainability benchmarks with the aim of exploring new approaches to wildlife monitoring
and are pleased that our efforts and progress continue in its concessions. The CAAPP-Faune project is supported by
to be recognised: Nature+ ASBL, Gembloux Agro-Bio Tech University, Cornell
University and the Goualougo Triangle Project, with financial
support from an external partner, PPECF. Assessing the
SPOTT Timber & Pulp rankings 2023 effectiveness of different and complementary wildlife
- 7th out of 100 companies monitoring methods, such as bioacoustics, camera traps
and environmental DNA, will help establish protocols for
SPOTT Sustainable Palm Oil rankings 2023 forest concessions in Central Africa.
- 28th out of 100 companies

Olam Group Limited Annual Report 2023 57

Olam Agri

Reducing emissions and investing

in renewable energy
To reduce emissions from energy use, we continued our
partnership with Schneider Electric to develop a strategy
to decarbonise our processing operations. Identifying
opportunities and assessing technologies has led to fuel
switches, renewable energy and energy efficiencies across
our operations. As a result of this partnership and agreed
strategy, we have also developed a priority roadmap for
each operation.
Our rice mill in Nigeria has commissioned a 1.3 MW
cogeneration power plant that uses rice husk, a by-product
of the milling process. This significantly decarbonises the
operation by substituting fossil fuel energy with biomass.
A waste heat recovery system has also been introduced
at our flour and pasta manufacturing facility in Ikorodu,
Nigeria, using waste from generators to produce steam.
This has reduced the use of natural gas and diesel. Finally,
our integrated feed and protein facility in Nigeria replaced
their diesel-powered forklifts for electric ones.

Empowering Nigeria’s farming

community by sowing Seeds for
the Future
Recognised as one of the top performing businesses
driving food fortification excellence in Lagos by The Bill &
Melinda Gates Foundation, Olam Agri’s Nigeria wheat
Did you know? business was acknowledged at the African Food Awards
2023, where our Seeds for the Future initiative clinched
Sustainability Initiative of the Year.
Olam Agri’s wood business sponsored the Kamba
Introduced in 2021, this grassroots initiative’s strong
ZAGG Odzala 33 race in the heart of Odzala Kokoua
results promise a future of food security in Nigeria
National Park, for the second year in a row in 2023.
through wheat, expanding our impact amongst farming
Organised in partnership with Kamba African Rainforest
communities and in areas such as consumer health and
Experiences, the 33-kilometre race helps raise local
environmental sustainability. This includes Olam Agri’s
awareness about the importance of a healthy lifestyle
active role in Nigeria's aquaculture sector, having trained
and the need to protect the ecosystems along the route.
10,000 farmers in water management techniques, and
The entire community and the local authorities came
Crown Flour Angels, a baking academy to create
together to celebrate the event, and next year it will
economic opportunities for women in Nigeria by
bring them together again for the 42-kilometre ZAGG
equipping them with commercial baking skills.
2024 marathon.

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 Strategic report

Nurturing businesses to grow and create sustained value

The Remaining Olam Group is responsible for incubating new sustainability
and digital platforms for growth: providing IT, digital and shared services,
and holding and developing our continuing and gestating businesses, and
is responsible for the divestment of our non-core assets to partially or fully
monetise these.

olamgroup.com

Olam Group Limited Annual Report 2023 59

Remaining Olam Group

Nurturing businesses to grow and create

sustained value
The Remaining Olam Group is responsible for the divestment of non-core assets and businesses,
nurturing and partially or fully monetising gestating businesses, and developing continuing
businesses. It is also responsible for incubating new sustainability and digital platforms for
growth and providing IT, digital and shared services.

The Remaining Olam Group is focused on helping our growth Key highlights
businesses to reach their full potential and create value on a
sustained basis. This includes incubating new platforms for
growth, developing our continuing businesses and responsibly
Volume EBIT
managing the divestment of non-core assets. (‘000) ($S million)
The Remaining Olam Group comprises Incubating Businesses
(Nupo Ventures) and Olam Global Holdco, which houses the
1,272.4 MT (25.1 m)
14.4%
De-Prioritised/Exiting Assets earmarked for exit, as well as
the Continuing/Gestating Businesses (Olam Palm Gabon,
Packaged Foods, Arise P&L, Rusmolco and Mindsprint). Sales Revenue Invested Capital
($S million) (S$ million)
Sales volume increased 14.4% with positive contributions
from the Continuing/Gestating Businesses and Incubating
Businesses. Despite growth in sales volumes, revenue declined
S$1,368.9 m S$2,538 m
across most of the businesses, except Incubating Businesses. -14.7% -4.7%
The operating group reported an EBIT loss of S$25.1 million
versus a gain in 2022 (2022: S$4.5 million), on lower earnings
Customers Employees
from the De-Prioritised/Exiting Assets and losses in the
Incubating Businesses. 2,600+ 11,000+*
Invested capital decreased by 4.7% or S$124.9 million.
Fixed Capital decreased due to the impact of the currency
devaluation on the Packaged Foods business and Rusmolco.
The transfer of sugar milling assets in India to Olam Agri also
reduced the working and fixed capital deployed.

*primary workforce

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 Strategic report

De-Prioritised/Exiting Assets EBIT

The De-Prioritised/Exiting Assets segment reported an EBIT (S$ million)
loss of S$11.3 million in 2023, a reversal from a positive
EBIT of S$13.9 million in 2022. This was driven by the -S$25 m 5
underperformance of Olam Rubber Gabon (ORG) on lower
14
rubber prices and an increase in overheads. Contribution
from the sugar mill in India decreased following the transfer 52 53
of the assets into Olam Agri from the fourth quarter of 2023.
-11
-27
Invested capital decreased by S$28.3 million, mainly due to -35
-62
the removal of fixed and working capital in sugar milling after -29 -48 -67
it was transferred to Olam Agri. Three remaining assets –
ORG, the edible oil refinery in Mozambique and the Gabon -56 -25
Fertilizer Project1 are expected to be divested over time. -77
-120
Continuing/Gestating Businesses
-151
Sales volumes from Continuing/Gestating Businesses
2020 2021 2022 2023
increased 17.3% mainly on better contribution from Rusmolco. Restated Restated
Notwithstanding lower sales revenue due to the impact of De-prioritised/Exiting Assets
Ruble devaluation, the segment maintained its performance Continuing/Gestating Businesses
during the year, reporting an EBIT of S$52.8 million in 2023 Incubating Businesses
(2022: S$52.2 million). A reduction in earnings from Rusmolco,
Packaged Foods and ARISE P&L was made up by improved
earnings from Olam Palm Gabon and Mindsprint.
Invested capital decreased by 5.1% or S$106.5 million, driven Invested Capital
by currency impacts on Rusmolco and Packaged Foods. (S$ million)

Incubating Businesses S$2,538 m

The Incubating Businesses in Nupo Ventures delivered
strong sales volume and revenue growth of 32.0% and -10.3%
57.9% respectively in 2023, primarily driven by results from
3,512
Nupo Ventures’ digital farmer services platform, Jiva2. EBIT -4.7%
losses from the segment increased from S$61.6 million to 924 3,009
S$66.6 million in 2023. 564 2,663
2,538
In view of the challenges faced by our start-up B2C purpose 551 523
brand business Re~ in meeting the Group’s expectations, the
Group has decided to close the business. Nupo Ventures will
concentrate on three Engine 2 initiatives, including Jiva, 2,587 2,431 2,098 1,991
Terrascope3, a carbon trading and sustainable landscapes
investment platform, and TRACT4.
1 14 14 24
2020 2021 2022 2023
Restated Restated

1. Excluded from Invested Capital.

2. Digital farmer services platform.
3. B2B smart carbon management platform.
4. A food and agri sector digital and sustainability platform.

Olam Group Limited Annual Report 2023 61

Remaining Olam Group: Nupo Ventures

Nupo Ventures is a venture incubation studio – we spend our time incubating and
growing new ventures. Focused on addressing ESG-related challenges within the
food, agriculture, and related sectors, we are dedicated to devising digital-first
solutions to these issues. We are building profit with Purpose ventures which aim
to deliver financial returns to investors while making a significant positive impact
on the planet and communities.

nupoventures.com

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 Strategic report

Moving from corporate innovation

to driving financial returns

How is Nupo Ventures delivering returns?

Nupo Ventures originated from Olam's Engine 2.0 initiative
to identify and cultivate the next wave of growth-driving
businesses. The success of these efforts and the first group
of portfolio companies led to the establishment of Nupo
Ventures as an independent venture studio, committed
to supporting entrepreneurs and start-ups. We focus
on developing and accelerating businesses that not only
promise financial returns but contribute innovative solutions
for societal and environmental improvements. This approach
allows Nupo Ventures to operate with the agility of a venture
studio, unbound by the strategic priorities of the Olam
Group.
The topics that Nupo Ventures is tackling are complex and
require system-level thinking in collaboration with an
ecosystem of stakeholders. Our deep food and agriculture
expertise combined with our ability to provide early market
and customer access through our corporate partnerships
gives our portfolio ventures a distinct advantage. We are delighted with the progress
our ventures are making, demonstrated
through the double-digit growth that both
Terrascope and Jiva have achieved this
year. This reflects the differentiated business
propositions each of the ventures have built
and execution ability of the teams in the
presence of strong headwinds. We continue
NUPO is two words combined in Latin
to explore new ideas to add to our venture
– Nutrire + Potentia – and means
pipeline, supported by rigorous market
‘to nourish potential’
validation. Our goal is to keep building new
We chose this name to show our admiration and digital ‘profit with Purpose’ ventures which
immense support to the amazing power of the human
spirit in overcoming great challenges. solve sustainability linked challenges in and
around the food and agriculture value chain
We want to help our team and partners reach their
potential, to develop new businesses for a more and through that generate financial value
sustainable life tomorrow. for the Group.
For that reason we support and nourish their ideas,
with rigorous market research, and our team’s
knowledge and expertise.
Suresh Sundararajan,
CEO, Nupo Ventures

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Remaining Olam Group: Nupo Ventures

What progress has Nupo Ventures

made in the last year?

Our investment themes are shaped by

trends we see in the market:
• Sustainable consumers – Consumers are
becoming increasingly interested in
sustainability which is being reflected in
everyday purchases and behavioural
changes
• Regenerative food systems – As consumers
are becoming more concerned about
sustainability, producers are incentivised to
transition to a regenerative food system
• Future-ready supply chains – To
accommodate and support the transition to
regenerative food systems, supply chains
need to become more future-ready.

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What areas is Nupo focused on? challenges. Concerns include water pollution, habitat
destruction, and interactions between farmed and wild
Nupo Ventures is operating in an exciting space. The food
species. Balancing these factors is crucial, as sustainable
and agriculture sector accounts for a large, growing and
practices in aquaculture are key to harnessing its benefits
impactful share of GHG emissions. However, only a fraction
while protecting marine ecosystems.
(approximately 0.1% to 0.3%) of sustainable financing
was dedicated to food and agriculture in 2022. Capital 3. Sustainable finance – Sustainable finance plays a pivotal
investments in the food and agriculture sector are expected role in achieving net-zero goals, offering a pathway to direct
to grow rapidly to increase efficiency and align with the investments towards green and low-carbon projects.
net-zero agenda. Turning to the start-up space, nearly Despite being pivotal for global sustainability, the food and
US$30 billion has been invested in Global Agrifoodtech ag sector often receives a lower proportion of sustainable
in 2022. finance. The complexity and variability of agricultural
Our venture portfolio is positioned well to take advantage systems, alongside a lack of clear sustainability metrics and
of some of these trends. standards in this sector, complicate investment decisions.
There is also a gap in innovative financial products
2023 has been a year of transition for Nupo Ventures.
tailored to the unique needs of sustainable farming.
We have spent time laying the groundwork to identify the
Overcoming these hurdles is essential, as sustainable
next set of ventures we want to incubate.
investment in food and agriculture is vital not only for
1. Regenerative farming – As the global population climate change mitigation but also for ensuring global
approaches 9.7 billion by 2050, feeding this growing food security and ecological resilience.
number presents a significant challenge. Agricultural
production must increase by approximately 70% to meet
this demand, yet arable land in the Global South per
person has halved since 1970, and now stands at roughly
0.19 hectares. Compounding the issue, about 33% of the What is the status of the Nupo
world's soils are degraded and agriculture consumes 70% Ventures portfolio?
of freshwater, with water scarcity affecting over 40% of
the global population. Climate change further 2023 has been a tough year for venture funding and
exacerbates these challenges, threatening to reduce crop start-ups globally with focus on profitability increasing.
yields by up to 25% in some regions. Understanding and Our ventures are navigating these turbulent times but
mitigating these impacts is crucial in our global efforts to they are staying the course to pursue the north star
combat climate change while ensuring food security. that each business has set for itself. Our ventures Jiva
and Terrascope are scaling well and starting to expand
2. Aquaculture – Aquaculture presents a promising solution their offerings. We have publicly launched our latest
to global food security, offering a rich source of protein venture TRACT, which has been built collaboratively
and essential nutrients through the farming of fish and with over 30 companies. In light of the challenges faced
other aquatic life. While it relieves pressure on wild fish by our start-up B2C purpose brand business 'Re~' we
populations and provides an efficient alternative to have taken the decision to close this business.
traditional fishing, it is not without sustainability

Our business

All our ventures will have

the goal of creating
profit with Purpose,
looking across the entire
ESG spectrum
Leveraging Olam Group's
rich heritage, we will look
to tackle some of the Improving
biggest challenges in food
sustainability
and agriculture, and We believe that advanced
adjacent sectors. impact
technologies are key to
supporting and scaling our
ventures to achieve the
biggest impact possible.
For food &
Digital-led
agriculture
solutions
& beyond

Olam Group Limited Annual Report 2023 65

Remaining Olam Group: Nupo Ventures

Jiva is a holistic farmer services ecosystem that uplifts

smallholder farmer livelihoods, at scale. 2023 was a pivotal
year for Jiva, paving the way towards profitability and
step-change revenue growth. This year Jiva's unit economics
turned positive across multiple commodities, particularly
corn and cassava, and expanded into a third crop of chilli.
Jiva is on a mission to improve the livelihoods of smallholder
farming communities, at scale. Ironically, despite 500 million
smallholder communities producing 70% of the world's food,
80% suffer from food insecurity due to low income. Jiva's
integrated digital and physical network offers easy access to
quality farming inputs, credit, marketplaces and top-notch
AI-driven agronomy advice through a single, reliable point
of contact.
2023 was a pivotal year for Jiva, achieving a 58% increase
in offtake revenue and improved margins, becoming unit
economic positive in corn and cassava, and expanding into
its third crop of chilli. Input revenue soared by 222% across
its retailer, micro-collector and farmer network, and drove
positive margins thanks to partnerships with key distributors
and manufacturers. Plans are underway to launch private Farmers working with Jiva
label products in 2024, aiming to further enhance margins.
Jiva refined its micro-collector network, maintaining over
4,000 active collectors across Indonesia, and launched a
100,000+
village-level retailer segment with over 1,000 participants.
Additionally, it integrated 50,000 more farmers into its
ecosystem. With this, Jiva is now present in nearly all major
agricultural areas in Java, Sumatra and Sulawesi, and will
further its micro-collector, retailer and farmer networks, and Jiva grew our unit margins substantially
expand into multiple additional crops in 2024. in 2023 while concurrently scaling our
Jiva's India-based farmer-engagement platform, business by almost 60%. We launched
AgriCentral, added a further three million farmers to its and expanded our network of Jiva Centres
registered base, topping the charts with over 10 million
downloads to date.
to more than 1,000 in the very first year of
operations which has laid the foundation for
Innovation and impact powering our inputs business significantly
Jiva's visibility surged this year alongside its business growth.
in the years to come. We also added two
Jiva was invited to present at the UN headquarters in New
York as part of their SDG Digital Acceleration conference. new crops during this year. With an eye on
Jiva was tasked with representing SDG 2, eliminating the future, Jiva aspires to expand its retailer
hunger, and was one of only 17 digital platforms presenting. partnership base by over threefold, while
Jiva also spoke at the Agri-Food Innovation Summit in
Singapore, the Southeast Asia Agri-Food roundtable in
adding multiple new crops to our offtake
Bangkok, the Agri-Innovation conference in Jakarta, and services, and further automate its digitally
several other significant conferences across Asia. enabled ecosystem in 2024. This will
Jiva's mission to uplift smallholder farming communities has position Jiva as one of the true leaders
seen remarkable progress. An internal survey of nearly 500 of agricultural technology companies
farmers, micro-collectors and village-level retailers revealed in Southeast Asia.
a 25% or more income increase for most, with an impressive
approximately 90% perceiving Jiva to be positively impacting
their communities.
Ramanarayanan Mahadevan
CEO, Jiva

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Terrascope is an enterprise-grade, end-to-end decarbonisation contract value versus 2022 (the year of launch), with many
platform that empowers companies across the food, customers signing multi-year contracts, demonstrating
beverage and agriculture value chain to build a credible strong market confidence. Notable clients include Kellanova
pathway to net-zero. By combining proprietary data assets (US), Mitsubishi Corporation (JP), and Princes (UK).
and AI models, with deep sector and sustainability expertise, Terrascope’s offerings now include Corporate Carbon
Terrascope guides enterprises on the most impactful emission Footprinting and Product Carbon Footprinting, along with
reduction activities they can take, starting with comprehensive various modules to aid companies in comprehensive emission
measurement of Scope 1, 2, and 3 emissions across their management and green innovation.
operations and complex supply chains. Since launching Furthermore, Terrascope established a Sustainability
publicly in June 2022, Terrascope has measured over Advisory Council with notable leaders in ESG and
400 metric tonnes CO2e, the equivalent of 75 million cars decarbonisation, including Claire Perry O'Neill, who served
on the road in a year. as UK Minister of State for Energy and Clean Growth,
In 2023, Terrascope experienced a significant period of and Karen Coyne, who has been working at the intersection
growth and development. The year marked its expansion of environment, ESG and enterprise risk management for
into global markets, substantial product enhancements, 30 years. The company's commitment to sustainability was
and the establishment of strategic partnerships and a further underscored by its Climate Pledge to reach net-zero
sustainability council. These achievements, coupled with by 2040 and the publication of its GHG emissions and
multiple accreditations and recognition as a thought leader reduction strategies on its website. Terrascope achieved
in decarbonising the food, beverage and agriculture value significant recognition, becoming a CDP Accredited Gold
chain, solidified its status as a premier technology platform Software Provider in Asia and completing a third-party
in carbon measurement and management. It was also assurance process for its platform and methodology,
featured as a Smart Innovator in Verdantix’s Supply Chain aligning with international standards and frameworks.
Carbon Management report. Terrascope also co-authored the 2023 Asia Food Challenge
report, highlighting the significant emissions from Asia’s
Terrascope, headquartered in Singapore, expanded its agri-food sector, and identifying key areas and opportunities
presence with regional hubs in Bangalore, Japan, the UK/ for decarbonising the value chain. This report benefitted from
Europe and Australia, now serving over 25 large enterprises, Terrascope’s expertise and data, particularly in agricultural
primarily in the food, beverage and agriculture sectors. technology decarbonisation, assessed through their
In 2023, the company saw a threefold increase in annual platform’s simulation module.

Terrascope has measured the equivalent of 75 million cars on the road in a year

400 metric tonnes CO2e

Olam Group Limited Annual Report 2023 67

Remaining Olam Group: Nupo Ventures

Innovation and impact

In 2023, innovation was at the heart of Terrascope's strides,
this included:
2023 was a foundational year for Terrascope,
• Expanding platform offerings to include both product and with our client base more than tripling.
corporate carbon footprinting
• Capabilities being sharpened to demystify global food Looking to 2024, we anticipate a heightened
and agriculture value chains, particularly emissions demand for auditable and scalable carbon
related to Forestry, Land Use and Agriculture (FLAG)
management solutions, specifically Scope 3
• Reaching several key milestones in enterprise readiness
along the way – securing ISO 27001 certification, GHG and product-level emissions. This comes as
methodology assurance and CDP gold software companies strive for enhanced visibility into
accreditation. supply chain emissions.
In December, Terrascope launched its new FLAG module,
To meet this demand, we will deepen
specifically designed to support the needs of enterprises with
significant emissions coming from land-use and land- our capabilities in GenAI and machine
management to comply with and set targets according to learning- driven data asset enhancement,
the most recent global guidance from GHG and SBTi. This supply chain emissions management,
enhancement makes Terrascope one of the first SaaS
platforms to incorporate FLAG emission capabilities, offering
and AI-based decarbonisation at scale.
a robust solution for organisations to achieve more accurate We also have our sights set on launching
carbon management and to advance their sustainability
objectives. Additional capabilities to calculate emissions from our presence in the US market while
Land Use Change and farming activities such as fertiliser strengthening our presence in Japan and
application and livestock rearing, to modelling Commodity UK/Europe. We are excited to bring our
Pathways and Land Sector Carbon Removals will be
distinctive capabilities to large companies
available in subsequent releases.
in the green economy and technology
sectors worldwide.

Maya Hari
CEO, Terrascope

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 Strategic report

TRACT is a pioneering sustainability measurement digital It uses aligned metrics and methodologies to measure, report
platform. It provides a simplified, consistent and secure and share sustainability performance securely across supply
solution for reporting traceability and sustainability chains. The metrics and methodologies have been developed
performance across food and agricultural supply chains. through extensive work in technical groups with key industry
specialists and stakeholders. As an independent company
Developed by and for the food and agriculture industry,
led by experienced industry professionals, it addresses
TRACT is the result of a collaborative effort of more than
the sector's challenges such as supply chain vulnerabilities
30 companies committed to driving positive change. Four
and increasing demands for transparency. TRACT key
leading global food and agriculture companies – Archer
features include consistent sustainability metrics, streamlined
Daniels Midland Company (ADM), Cargill, Louis Dreyfus
reporting, user-friendly data management,visual
Company and Olam – provided TRACT’s initial funding
performance tracking, risk mitigation insights, and time and
and talent.
cost savings in a secure environment.
TRACT’s easy-to-use platform enables companies to
Initially focusing on coffee, palm, cocoa and soy, it plans to
compare metrics and methodologies across multiple product
expand to other commodities and sustainability areas. The
categories all in one place for the first time. By reducing the
platform, which has already received feedback from early
cost, effort and time spent on sustainability measurement
users, is available for subscription from early 2024 and aims
and reporting, TRACT allows its users to focus on improving
to drive sustainability transformation in the industry.
their sustainability outcomes.

Olam Group Limited Annual Report 2023 69

Remaining Olam Group: Mindsprint

Mindsprint empowers global organisations to adapt to emerging technologies

such as GenAI, augmented reality and artificial intelligence, and build
sustainable technology solutions that help them navigate the pace of change.

Mindsprint has more than 20 years of experience and expertise in digital

transformation for the Olam Group. With exceptional technology expertise
and deep domain knowledge, Mindsprint helps organisations envision what is
possible today and in the future.

mindsprint.org

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Re-imagining businesses through talent,

technology, and insights-driven services
Marking and meeting key milestones Performance and progress
Over the past year, since its inception, Mindsprint has Mindsprint's performance over the past year reflects a
emerged as a leading independent digital technology combination of financial success, strategic growth,
company that has strengthened our existing partnerships innovation, and a commitment to delivering value to our
with ofi, Olam Agri and the rest of the Olam Group. We have customers, shareholders and employees.
articulated our core technology and domain offerings as a
We have made significant progress across several
solutions and services provider to global businesses through
technology solutions and services, and have continued to
talent, technology and insights-driven services. Mindsprint’s
pioneer the digital transformation of Olam’s operating
unique experience and expertise in working with complex
groups, particularly ofi and Olam Agri. Our digital solutions
businesses and supply chains across the Olam Group
have continued to deliver growth and value for the
positions it as a reliable partner to support similar businesses
businesses.
worldwide in their transformation journey.
Innovating to scale core platforms
• Strategic partnerships: Mindsprint forged strategic
alliances with industry leaders, enhancing our capabilities • ofi’s Direct platform is evolving with the merger of Olam
and expanding its reach. Collaborations with AWS, SAP, Direct and Digital Supplier Engagement (DSE) under a
Microsoft, Adobe, SnowFlake, ServiceNow and KYP.ai will single umbrella. The combined platform will serve ofi’s
open new avenues of growth. first-mile traceability and procurement needs covering
• Global presence: Mindsprint successfully expanded its all the various types of contracts with farmers, suppliers
presence into new markets and has also registered sales and other supply chain participants.
offices globally to target potential customers. • The Digital Warehouse has proven instrumental in
• New customer wins: We engaged with new customers on enhancing productivity and mitigating fraud. In 2021,
exciting projects in the past year. We did an advanced it covered 300+ warehouses and the impact has surged
analytics project for an agri company focusing on cotton with 600 warehouses integrated into the system by 2023.
production and ginning, we developed a digital app for This expansion signifies increased warehouse operation
managing a cloud-based mobility intelligence platform, efficiency and underscores the platform's effectiveness
and initiated process discovery implementation for a in tackling fraud risks.
global leader in the logistics industry. We are also the
ServiceNow transformation partner to a US$5 billion
piping solution group and enabled a cybersecurity
assessment for a US$300 million farm group growing
and distributing fruits and vegetables.
• Product innovations: Mindsprint launched cutting-edge
digital solutions, revolutionising how businesses approach We are on an accelerated journey to
their digital transformation journey. The introduction of
converge our differentiated capabilities
Sales Buddy, TruTrace and BakeWell demonstrates our
commitment to meet the evolving needs of our customers. and our rich experience as a domain-
• Employee growth: Mindsprint has significantly expanded focused technology transformation
its workforce with top-tier talent to enhance its position provider together, to help global
and cater to the needs of the digital transformation businesses address their toughest
landscape. We continue to invest in professional
development opportunities and our employee engagement challenges. With a consultative
score remains high and is evidenced in our certification mindset and a proven track record of
as a Great Place to Work. enabling this for Olam across various
• Recognition and awards: Our Data and Analytics geographies, Mindsprint is confident
practice was recognised for the Best Use Case at
the Data and Analytics Summit in Dubai and Doha, of what the future entails.
and Mindsprint’s Business Process Services team won
the Silver Award at the Asia SSON Impact Awards 2023.

Dharmender Kapoor
CEO, Mindsprint

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Remaining Olam Group: Mindsprint

We are engaging with over Four countries

Over 17,000
100,000 17 profit
centres bakers across West Africa now have access
farmers to increased profitability with a dedicated app

• Spyder, Olam Agri's origination and sustainability Innovating for better customer
platform, has witnessed remarkable growth. From one
engagement
origin and 22,000 farmers in 2021, it has now expanded
to three origins, engaging with over 100,000 farmers. • Over 17,000 bakers across West Africa now have access
By 2024, the solution will be used globally across all to increased profitability with a dedicated app that
Olam Agri locations. enables the adoption of best practices and offers
• Olam Markets, our transformative initiative in primary a profitablity calculator, and complaint management.
distribution, has marked significant growth. From two • Digital wallet payments for farmers with convenient
countries and five profit centres in 2021, it has now and secure transactions, fostering financial inclusion
expanded to four countries and 17 profit centres. and efficiency in the agricultural ecosystem.
Innovating for new strategic priorities • Risk management and trading portal to ensure efficient
trading operations through robust risk mitigation
• TruTrace is a forward-looking compliance solution that strategies and real-time monitoring.
aligns with the deforestation regulations in the European • Sales Buddy app to enhance the effectiveness of retail
Union. With Phase 1 complete, the platform-first approach sales teams by providing intuitive tools and real-time
ensures end-to-end traceability from origin to customer. insights for optimised performance.
Tailored for Olam's diverse business units and third-party
agricultural collaborators, it seamlessly integrates data
from Digital Solutions, SAP, and Oracle Transport
Management System.
• Ability to automate repetitive tasks freeing up bandwidth
for high gain activity.
• Hub and spoke model to drive engineering and process
maturity.
• Enabling people to have more comprehensive interaction
with the right tool ecosystem.
• Productivity gains via AI agents enabled by GenAI
solutions such as Code assistant, Code explanation,
Unit test Generator, and Automated Test case creation.

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 Strategic report

Innovation and customer-centric focus Our aim is to become a leading technology solutions provider
that continuously innovates purpose-built digital solutions
for growth enabling global enterprises to be future-ready. We plan to
Mindsprint is evolving to focus on innovation, customer achieve this by focusing on niche markets and equipping our
success and growth. We are improving customer satisfaction workforce with cutting-edge tools and skills.
through a global account management structure and a
dedicated team focused on practices and service offerings. In 2024, we will incubate new technologies through our
Centres of Excellence to drive innovation. Our Integrated
Our goal is to deliver efficient, transparent and reliable Service Delivery Partner setup will enhance efficiency and
project management and service delivery experiences. we will enable a talent acquisition ecosystem globally. Our
We are increasing our sales bandwidth and account strategic imperatives for 2024 reflect a holistic approach to
mining processes to capture new opportunities and customer-centricity, operational efficiency and innovation.
maximise value for our customers. To streamline processes By aligning customer relations, delivery structures, talent
and drive accountability, we are establishing a Global management and technological innovation, we will propel
Delivery Organisation. Enterprise Resource Planning (ERP) our vision and Purpose, ensuring adaptability and sustained
for our Professional Services business will enhance success to global organisations and help them thrive in a
operational efficiency and business agility. Mindsprint dynamic business environment.
will continue to focus on adequate data protection and
information security measures to mitigate risks associated
with our customer’s operations. Structured pricing and
cost analysis will inform our financial decision-making
and ensure sustainable growth.

Olam Group Limited Annual Report 2023 73

Remaining Olam Group: Olam Global Holdco

Leveraging food, agriculture and emerging market expertise to develop

businesses along the value chain. Olam Global Holdco holds and nurtures
continuing and gestating businesses to support their growth. These include our
joint ventures, Olam Palm Gabon and Olam Rubber Gabon, which are setting
benchmarks for sustainable palm and rubber production in Africa, Rusmolco,
which is one of the largest fresh milk producers in Russia, and Caraway,
a market-leader in packaged foods with culinary and snack brands across
West Africa.

Image TBU

olamgroup.com

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 Strategic report

Developing our gestating businesses

Supporting the development of the CPO tonne in 2022 to $912 in 2023. OPG has supported
training of harvesters by opening harvesting schools and
agricultural economy in Gabon appointing the best harvesters as trainers to improve the
Olam Palm Gabon (OPG) increased its EBITDA delivery quality of harvesting and increase productivity. OPG
during 2023 while Olam Rubber Gabon (ORG) was down continues to invest in and focus on mechanisation with
due to the very low prices of rubber in the international a mechanised crop evacuation system (Bin System)
markets. Both OPG and ORG are 60:40 joint ventures implemented across 43,500 ha, while the mechanised
with the Republic of Gabon. spraying area was extended to 32,500 ha. Upkeep costs
Though the financial performance of OPG was much were down by 14% year-on-year due to continuous
better compared to last year, yields in 2023 were lower improvements and higher productivities in all plantation
than expected, predominantly affected by the lower rainfall maintenance activities.
and higher water deficit. Several initiatives were taken to The three palm oil mills at OPG added to the overall
further streamline the plantation operation and optimise improvements in the plantation business with increases in
the production cost. Harvesting cost has reduced by 20%, throughput, higher extraction rates and a reduction in oil
from $274 dollars per CPO tonne in 2022 to $220 in 2023. losses. The refinery increased sales volumes of our branded
Total cash cost has reduced by 14%, from $1,065 dollars per refined oil Cusin’Or by 12% and also soap volumes to ensure
the Gabonese national market remains well-stocked.

In 2023, we successfully concluded a construction project to build a total of

210 new houses

to accommodate our expanding workforce

Olam Group Limited Annual Report 2023 75

Remaining Olam Group: Olam Global Holdco

Work on the large-scale sub-surface drip irrigation project OPG and ORG continued their digital transformation journey,
to improve yields is making good progress with Phase 2 completing the adoption of the mobile-based digital application
completed and commissioning planned for February 2024. (AgriPal) for capturing biometric attendance and worker
Work on Phase 3 of the project was launched in September productivity, and extended it to cover all the departments.
2023 and is expected to be completed by end of 2024. We modernised our drone fleet to 100% VTOL (vertical
Fertigations trials have continued in Phase 1 to check the take-off and landing) drones to enhance the monitoring and
effectiveness of water soluble fertilisers fed through the improvement of drains, furrows and roads, while adopting
irrigation drip lines. thermal imaging to monitor wildlife in our plantations and
HCV areas. We also successfully completed a comprehensive
OPG remains the largest 100% RSPO certified palm plantation
evaluation and testing of an Image Analytics solution for
in Africa and continues to pave the way for excellence
counting and quality grading of fresh fruit bunches (FFB).
in the African palm oil sector. A new tank farm at the port
Better supervision and process improvements contributed
with a storage capacity of 15,000 tonnes was commissioned
towards cost optimisation, while other digital initiatives were
in January 2023. It handled 45,000 tonnes of oil and was
undertaken to eliminate manual data entry and streamline
instrumental in helping to segregate Crude Palm Oil (CPO)
the processes in workshops and stores. We expanded our
and to enable us to start selling and shipping Identity Preserved
telecom network coverage and upgraded over 90% of
(IP) – the highest level of certification from RSPO - to our
coverage to 4G through partnerships with regional telecom
customers in Europe at a premium over mass balance and
providers.
segregated CPO. Sales volumes were lower due to the
oversupply in the regional markets, especially Cameroon, ORG facilitated the establishment of microfinance branches
and the political disturbances in Gabon which impacted in our Bolo and Sossolo estates, enhancing the speed and
shipments. OPG is committed to certification and adheres security of the payment process, and reducing absenteeism
to«the strict requirements of RSPO. OPG has maintained its rates among tappers. We also confirmed our compliance to
RSPO certification for all its sites and also renewed its ISCC the ISO 14001 standards.
certification with zero non-conformities.
ORG achieved an increased volume of 25,863 metric tonnes,
despite the operational challenges due to the political events
in Gabon in 2023. We successfully opened 2,990 hectares
Olam Palm Gabon and Olam Rubber Gabon
during the year and improved our maintenance productivities
progressed work in a wide range of environmental
in all the activities. The agronomy function was restructured
and social initiatives across 2023. For more information
to deliver more impactful tapping quality, field agronomy
on these outputs please visit the Remaining Olam
and research across our teams. We exported 18,312 metric
Group Sustainability section on pages 81 to 82.
tonnes, more than doubling our volume compared to 2022.
For information on safety updates please visit People
and Culture on page 121.

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 Strategic report

Winning with consumers in West Africa Capital expenditure continued to be deployed to strategic
projects. We drove greater efficiencies across our supply
Our packaged foods business, Caraway, maintained a
chain with the manufacturing team focused on ensuring
robust performance in 2023 despite strong headwinds.
world-class practices, addressing key areas of food safety,
Commodity cost inflation, currency depreciation in Nigeria
quality, productivity, and cost control. We are expanding
and Ghana, the removal of the fuel subsidy in Nigeria, high
our tomato farming and outgrowers programme – which
inflation and high interest rates continued to significantly
currently covers approximately 1,900 farmers – while
reduce consumers’ disposable income and constrain trade
increasing the quantity processed.
working capital. This in turn affected consumption in some
categories and led to down-trading. We have a strong Innovation Glide Path to drive growth
into the future, including entry into adjacent categories
Caraway has established leading market positions in the
and plans for entry into new categories. We are also
culinary and snacks categories with a portfolio of brands
focused on delivering better nutrition solutions. Our nutrition
that ‘surprise and delight’ West African consumers. During
commitment is to create and update formulations to improve
the past year, we strengthened and maintained the equity
the nutritional value, while gradually reducing fat and sugar
of our master brands with insight-based communication,
across our product range.
unique experiential activations and digital marketing. Given
the economic conditions, we moved to a category-based
sales structure to bring in more focus to individual categories.
In terms of price-pack architecture, we are now operating
across different price tiers in our key categories so that we
can serve different consumer groups with products that suit
their needs.
We improved the value of our offerings along with balanced
investments between consumer and trade to regain and
strengthen our market share. We worked on improving
margins by re-engineering and re-formulating products
to make them more affordable without compromising on
performance, improving manufacturing efficiency and
optimising overhead costs. We also focused on more profitable
products through our redistribution and sales teams.
Caraway continued to drive innovation across our business.
During the year, we introduced mass market offerings
in both Nigeria and Ghana to protect our franchise given
the current economic market conditions. In biscuits, we
strengthened our presence by launching breakfast and
cream cracker offerings. We also drove premiumisation
through the launch of Perk Danish Butter Cookies, PureBliss
Milkrich Cookies and Chocorich Wafers.

Olam Group Limited Annual Report 2023 77

Remaining Olam Group: Sustainability

Sustainability in the Remaining

Olam Group
We are re-imagining global agriculture through our operational ability to make a material
impact on improving farmer livelihoods, increasing community wellbeing and regenerating our
living world.

Sustainability Priorities

Our aims Summary

Climate-positive We are working to reduce the environmental footprint of our business by reducing
Minimise climate and
greenhouse gas emissions, increasing energy efficiency and use of renewables,
material footprint
reducing water use intensity and improving our waste management in our operations.

Nature-positive We are protecting ecosystems, biodiversity and watersheds in the locations

where we operate.
Protect and
regenerate

Livelihoods-positive We are working to improve livelihoods in communities where we operate

Foster inclusive
and reduce social inequalities for women, youth and marginalised groups.
livelihoods We are strengthening safety and health to support the wellbeing of our employees,
and focusing on promoting inclusivity and improving diversity across our organisation.

Livelihoods-positive We are working with our suppliers, customers and our employees to strengthen food
security and improve access to affordable food and nutrition.
Feed and nourish
the world

Good Governance We are working to responsibly source our materials and services across our operations
and supply chains.
Govern well and
source responsibly

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 Strategic report

Nupo values

1 Drive Change
Nupo Ventures is focused on building profit with Purpose
Our planet demands new ways of living and working.
ventures. What this means is that all of our portfolio
At Nupo Ventures, we rise to meet these challenges.
company start-ups are created with a triple bottom-line in
Innovation is at the core of all that we do to provide
mind – people, profit and planet. We are not only trying to
new solutions.
create profitable businesses but are doing it in a way that
allows people to prosper and create a better outcome for the
planet that we inhabit and its environment which provides so 2 Doing Things Together
much support to our way of life. Together, we create solutions that change the world.
Across the portfolio, the businesses are delivering positive The unparalleled strength of our collaboration is how
environmental and social impacts. Jiva is enabling farmers to we put ideas into practice.
better earn a fair income for their crops as well as providing
access to responsible financing and technology innovations 3 Caring For All
to improve their livelihood. Its focus is helping reduce social
inequalities for women, youth and marginalised groups. Inclusion is integral to how we solve global sustainability
issues. Our work is focused on making sustainability
Terrascope is helping companies measure and track their accessible for everyone, and the norm worldwide.
carbon emissions more quickly and more accurately, with
a particular strength in Scope 3 (or supply chain-linked
emissions) which for most companies is the greatest but 3 Daring To Think Differently
most challenging source of their emissions. Creative entrepreneurship is key to our success.
We are getting out of any comfort zone to think
and explore new horizons for a sustainable future.

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Remaining Olam Group: Sustainability

Mindsprint helps customers achieve their sustainability goals

and efforts by constantly finding and improving solutions to
address sustainability challenges and help them become
responsible business entities. This includes data collection
and analysis, resource optimisation, sustainable supply
chain management and environmental monitoring.
Mindsprint was recognised as one of India’s Most Sustainable
Organisations by The Economic Times and the Global
Sustainability Alliance at #GSASO2023. The recognition
was awarded to organisations that prioritise sustainability
practices and solutions as part of their operations.

Caraway
Caraway has committed to a sustainability road map with
targets on energy consumption, water consumption, carbon
emission and waste reduction driven through a set of
coordinated initiatives. 2023 saw the completion of a key
initiative to substitute compressed natural gas (CNG) for
diesel, as well as a back-up to piped gas at sites in Nigeria.

Making an impact, creating a smile,

one meal at a time
Employees dedicated their 2023 Diwali gift to helping
feed 800 government school children through
Akshayapatra Foundation, a charitable organisation
working towards eliminating hunger in children. Through
this initiative, children in government schools received
nutritious midday meals throughout the academic year.
Over 20 Mindsprint employees volunteered at a local
government school and served the midday meals to
the children to inaugurate the engagement.

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 Strategic report

Conserving critical habitats and

animal populations in Gabon
The fauna and flora of Gabon are amongst the richest in
Africa in terms of diversity and endemism. Since its inception,
OPG’s development plan has strongly considered these
valuable areas, resulting in the set aside of more than 50%
(or 106 000 hectares) of its allocated concession. It has
placed a focus on detecting and preventing any illegal
hunting, logging and mining activities, and uncontrolled fires
during their patrols in these conserved zones.
Today OPG seeks to go beyond ensuring the integrity of
these High Conservation Value areas, and demonstrate
conservation gains, especially for three critically-endangered
species as per the International Union for Conservation of OPG’s Biodiversity Action Plan and Monitoring Protocol have
Nature (IUCN) Red List: central chimpanzees, western gorillas been peer-reviewed by the IUCN’s ARRC Taskforce, which is
and forest elephants. To measure gains in quantity and focused on helping conserve ape populations, as well as an
quality, OPG uses the World Bank Group’s Performance independent expert panel. A great ape and elephant
Standard 6 (PS6) on biodiversity conservation and management plan are being developed to maximise OPG’s
sustainable management of living natural resources. positive impact on species. These initiatives are pioneering
in the palm sector and lead good practice in the region
To do so, OPG has developed and implemented a Biodiversity on biodiversity conservation. The company is focused on
Action Plan to mitigate and manage biodiversity impacts a model of development that combines production and
to achieve no net loss for natural habitat and net gain for socio-economic growth with conservation of biodiversity
impacted critical habitat-qualifying features. This is supported and natural ecosystems.
by a Biodiversity Monitoring Protocol to understand the
abundance, distribution, habitat use, population dynamics
and health of its three priority species over time. The Monitoring
Protocol ensures that OPG concession management plans
are informed by and take into consideration key areas for
apes and elephants to minimise impacts and ensure good
management. It includes cutting edge methods such as DNA
analysis, GPS tracking and camera trapping.

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Remaining Olam Group: Sustainability

Working with the community for social and

agricultural projects
Olam Palm Gabon and Olam Rubber Gabon have
continued their engagement with the 86 communities that
are neighbouring their concessions. This year, the team
supported 81 social projects linked to the improvement
of education and health and water access as well as
investments in social and agricultural projects. This brings
the total number of projects realised in the last 10 years to
more than 600. While these initiatives are primarily focused
on infrastructure and access improvement, support is now
being directed towards a long-term livelihood development
plan to encourage local entrepreneurship and develop
income-generating activities led by the communities to
create stronger socio-economic growth.
Understanding and monitoring
elephant populations
To ensure a robust monitoring of OPG’s biodiversity
gains, OPG has entered into a pioneering scientific
partnership with the Gabonese National Park Agency
(ANPN) to gain a better understanding of forest elephant
populations present in OPG’s concessions. To date, OPG
and ANPN teams have placed GPS tracking collars on 15
elephants via GPS collars to understand their movements
from the surrounding forests and within the HCV-plantation
mosaic landscape. They help test the efficiency of the
ecological corridors that OPG has set aside.
The team has collected 1,246 specimens of faecal DNA
samples during the first year of the project (once per
season) in the plantations to identify individual elephants.
This facilitates the estimation of the sex and density of
elephants visiting the plantations as well as the frequency
of visits. Initial results confirm that there is a high population
density of elephants in the concessions, indicating low to
zero hunting pressures as well as food availability.
It has deployed 40 camera traps to understand the
abundance of elephants throughout the year (seasonal
variations) and to identify individual elephants to
understand and track the frequency of their movements.
The results give an unprecedented insight into interactions
between large-scale agriculture and elephants in Central
Africa, and will contribute to national scientific
publications. OPG aims to extend this study to
Great Apes in 2024.

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 Strategic report

Sustainability

Sustainability is woven into the fabric of our everyday

decision making
We’re re-imagining global agriculture through our ability to make a material
impact to improve farmer livelihoods, increase community wellbeing, and
regenerate our living world.

olamgroup.com

Olam Group Limited Annual Report 2023 83

Sustainability

Sustainability framework

Our Purpose

Re-imagining global agriculture and foods systems

Our Vision

To be the most differentiated and valuable global food and agri-business by 2040
Governing Objective

To maximise long-term intrinsic value for our continuing stakeholders

Focus Areas

People and Culture Social Environment

The talent, skills and inspiration of our The relationships we forge and nurture The land, water, biodiversity and other
workforce, and our responsibility to with suppliers and the communities ecosystem services required for food,
provide a safe and healthy workplace where we operate for long-term success. feed and fibre crops to grow.
where employees’ rights are respected.

Food Loss, Waste & Packaging Diversity & Inclusion

Includes reducing post-harvest losses, Includes inside our company and in
packaging and crop insurance. our farming communities.
Focus Focus
Areas Areas

Nutrition & Health Healthy Ecosystems

Includes food security, and access to clean Includes deforestation and protecting
water and sanitation. biodiversity.
Focus Focus
Areas Areas
Education & Skills Water
Includes learning and development and Includes in our own operations and by
engagement of our employees. our farming communities.
Focus Focus
Areas Areas
Climate Action Healthy Soils
Includes decarbonisation. Includes precision and regenerative agriculture.
Focus Focus
Areas Areas
Safe & Decent Work Economic Opportunity
The talent, skills and inspiration of our workforce, Includes Living Wage, Living Income,
and our responsibility to provide a safe and improving farm production and access
healthy workplace where employees’ rights to markets.
are respected.
Focus
Focus Areas
Areas
Responsible Sourcing
Includes traceability, transparency and supplier engagement in our direct supply chains.
Focus
Areas
Purpose Outcome

Prosperous Farmers Thriving Re-generation of

and Food Systems Communities the Living World

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 Strategic report

Embedding sustainable and responsible

business practice
Our approach to sustainability The IA Function has also initiated specific ESG reviews
Sustainability is woven into the fabric of our everyday in accordance with the Annual IA plan covering material
decision-making as a business, not as a separate goal ESG areas and key metrics, with focus on accuracy
or intention. To determine what is material to our business, and completeness in reporting.
we have collated multiple environmental and social indicators The Listing Rules 720(7) requires all Directors to undergo training
across 11 Focus Areas connected and aligned with the UN on sustainability matters which they have completed.
Sustainable Development Goals (SDGs) and the 10 Principles
of the UN Global Compact. The continued development of
AtSource - our sustainability insights platform - has enabled We have published an Additional Sustainability
us to gain insights into environmental and social indicators. Information report, which is designed to be a companion
The indicators are informed and influenced by inputs from to this main report and contains all relevant sustainability
various sources including customer audits, enquiries from and SGX required data. This is available on our website.
NGOs and banks, international standards, civil society
scorecards and frameworks, and industry platforms.
The resultant Focus Areas have been mapped against
our operations and supply chains to identify risks and
opportunities. Olam Agri and ofi have each developed Code of Conduct
separate goals and discrete Sustainability Frameworks which Our Code of Conduct provides a guiding framework which
are tailored to their respective strategies and reflect business sets out Olam Group’s commitment to ‘do what is right’,
operations in preparation for demerger from the Group. founded on the values and everyday behaviours that build
For the purpose of this report, the following pages offer an our distinctive culture and set the standard for what it means
update on the continued progress against the Olam Group to be part of Olam. During 2023, Olam Agri and ofi revised
framework and goals as they remain relevant. and implemented a refreshed Code of Conduct which was
rolled out across their respective organisations. The Code
Our Sustainability Framework, on page 84, enables us to
addresses behaviour and policies all of our employees are
translate our Purpose into practice.
expected to comply with. Visit the Ethics & Compliance section
We define three key outcomes of: of each respective website for more information.
• prosperous farmers and food systems
• thriving communities
• re-generation of the living world.

How we govern sustainability

We have been reporting in reference to the GRI framework Safety and health
since 2016 and have continued to report against the We value safety and are constantly evolving our approach
Sustainability Accounting Standards Board (SASB). The index to drive more effective engagement with safety issues. Our
reports for these can be found on olamgroup.com/investors/ objective is to continue to embed a zero-incident culture and
annual-reports. The Corporate Responsibility and create a working environment where everyone returns home
Sustainability Committee (CRSC), a dedicated Board safely. This includes identifying and managing major safety
Committee that assists the Board in ensuring the Company’s risks such as driving, working at height or working with energy.
attention to Environmental, Social and Governance (ESG) We empower all employees and contractors to report unsafe
issues and sustainability, meets every quarter to review and conditions or behaviour. For more detailed information visit
consider sustainability matters, concerns, trends and our People and Culture chapter on pages 112 to 123.
developments that would impact the Group. The CRSC
Food safety
provides regular updates to the Board.
We operate highly integrated supply chains working with
The Company has in place a set of key performance large-scale growers and smallholders to provide training,
indicators and associated monitoring processes in place quality seeds and other inputs, coupled with the highest
to drive our sustainability goals. standards of quality and microbiological control at our
processing plants in origin and in destination markets, thereby
As a response to the requirement under the Listing Rules for
reducing food safety risks. We are committed to high food
sustainability reporting to be subject to internal review, the
quality and safety standards and adopt granular vigilance
Internal Audit (IA) function has worked with the management
to keep in step with the standards and requirements of
in incorporating additional sustainability controls within the
governments and various legislative bodies. We have achieved
scope of the Group’s integrated risk assurance framework.
the Food Safety Standard Certifications and work to align
with the Global Food Safety Initiative (GFSI) and the
International Organization for Standardization (ISO). For
more information on individual business updates, visit ofi
pages 25 to 40 and Olam Agri pages 41 to 58.

Olam Group Limited Annual Report 2023 85

Sustainability
Embedding sustainable and responsible business practices

Anti-bribery and corruption Data privacy and cybersecurity

All employees are routinely required to undergo annual Your privacy is important to us. We are committed to
online training to familiarise themselves with the Anti-Bribery collecting information in compliance with all applicable
and Corruption Policy amongst other relevant Policies as rules and regulations.
set out in the Code of Conduct. Completion of the training
The Group takes a comprehensive, multi-tiered approach
is tracked and monitored by the Ethical Business Programme
to cybersecurity. Our team of dedicated IT security experts,
(EBP) and Legal Compliance Team. The status is reported
combined with a robust infrastructure and policies, enables
to the Internal Audit and the Audit and Risk Committee under
mitigation against electronic viruses, ensures currency
the Olam’s Integrated Risk and Assurance Framework (IRAF)
of software deployed throughout the Group, and employs
on a quarterly basis.
data leakage prevention controls.
Visit page 182 of the Governance report or the Ethics
More information on privacy and security is available via
& Compliance section of each respective website for
the respective policies on Olam Agri and ofi’s websites.
more information.

Whistleblowing Responsible supply chains

All employees are encouraged to report actual or suspected Developing responsible and sustainable agricultural supply
wrongdoing, unethical practices or illegal activity that is in chains where prosperous farmers and growers, thriving rural
breach of the Company’s Code(s) or policies. Such reporting communities, and healthy ecosystems coexist is central to
must be done in good faith where the person reporting may our Purpose. Across multiple supply chains and geographies,
report in confidence and without fear of reprisals or concerns. we work closely with farmers to build long-term relationships
A dedicated whistleblowing platform (known as ‘Speak Up’) based on responsible business practices and trust. This is
has been implemented to ensure anonymous and confidential underpinned by our policies, including our Supplier Code,
reporting. These are available on our external websites and that set out the standards and principles we expect of our
internally on Workplace, the Group’s employee engagement suppliers. We continue to focus on transformative actions
platform. and strive to create a more transparent supply chain and
traceability, and continue to evolve to meet customer and
Visit page 182 of the Governance report or the Ethics &
regulatory requirements. Olam Group’s focus on avoiding
Compliance section of each respective website for more
deforestation in smallholder supply chains also means it is
information.
well placed to comply with the obligations. We are taking
transformative actions and creating transparency for each
stage of the supply chain journey, collaborating with
farmers, suppliers, governments and NGOs to deliver real
and lasting progress.
For more supply chain information visit ofi pages 37 to 40
and Olam Agri pages 54 to 58.

Some of our certifications

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 Strategic report

Partnering for greater scale and

impact across our value chain
To achieve the UN Sustainable Development Goals by 2030 Our Material Areas are inter-connected and most initiatives
and our own targets, we must collaborate across our have a positive impact beyond the area they are listed under,
industry and beyond. Partnerships not only allow us to share particularly those relating to improving farmer livelihoods
knowledge, but to gain greater access to financial and and reducing climate change impacts. In addition to supporting
non-financial resources. global and industry-wide initiatives including the UN Global
Compact and IMAGINE to advance positive and sustainable
We map where our material impacts occur against our value
change, we partner and collaborate with multiple organisations
chain, and categorise them as high, medium and low. This
and platforms to support progress towards achieving the
allows us to seek partnerships and resources accordingly.
Sustainable Development Goals (SDGs).

Processing,
Material Areas Farming Sourcing Manufacturing Distribution Customer Consumer
& R&D

SDG 1
Economic Opportunity
Anker Research Network and the Global Living Wage Coalition; the IDH Living income Business Action Committee the Living Income Community of Practice;
International Cocoa Initiative; Global Coffee Platform; Sustainable Coffee Challenge; International Coffee Organisation Coffee Public-Private Task Force; Global
Living Wage Coalition (GLWC); Sustainable Nut Initiative; Sustainable Spices Initiative; Interlaken Group; African Cotton Foundation (ACF); Better Cotton Initiative
(BCI); IFC; USAID; GIZ; WBCSD Agriculture and Food Pathway - Farmer Livelihoods; WBSCD CFO Network; Rainforest Alliance

SDG 8
Safe & Decent Work
WBCSD Call to Action for Business Leadership on Human Rights; Global Child Forum; ILO Child Labour Platform; Child Learning & Education Facility (CLEF);
Jacob’s Foundation TRECC; WBCSD BCTI (Business Commission to Tackle Inequality); Fair Labor Association; Soft Commodities Forum

SDG 5
Education & Skills
UN Women’s Empowerment Principles

SDG 3
Nutrition & Health
Global Alliance for Improved Nutrition (GAIN); WBCSD Food Reform for Sustainability and Health (FReSH); UN Food Systems Summit; Workforce Nutrition Alliance

SDG 8
Diversity & Inclusion
WBCSD Call to Action for Business Leadership on Human Rights; UN WEP; IDH; Solidaridad; UN Women; WBCSD Equity Action Platform - Living Income

SDG 13
Climate Action
Accounting for Sustainability; Agricultural Sector Roadmap to 1.5ºC; Food and Land Use Coalition; Natural Capital Coalition; TCFD; WBCSD Equity Action Platform
- Living Income; WBCSD Agriculture and Food Pathway - Nature Positive; SBTI; Green Climate Fund

SDG 15
Healthy Ecosystems
HCV Resource Network; Cocoa and Forests Initiative; Tropical Forest Alliance; The Forest Dialogue; WBCSD Food and Nature Programme; Task Force for
Nature-related Financial Disclosures; FSC®; PEFC; GPSNR; RSPO; POCG; RTRS Soy; WBCSD Forest Solutions Group; Wildlife Conservation Society (WCS); Global
Environmental Facility (GEF); CIRAD

SDG 15
Healthy Soils
HCV Resource Network; Cocoa and Forests Initiative; Tropical Forest Alliance; The Forest Dialogue; WBCSD Agriculture and Food Pathway - Regen Metrics; Task
Force for Nature-related Financial Disclosures; First Movers Coalition for Food; SMI Agri-business Taskforce

SDG 6
Water
California Water Action Collaborative; UN CEO Water Mandate

SDG 12
Responsible
Consumption and
Production
Sustainable Rice Landscapes Initiative; Sustainable Rice Platform; Champions 12.3; Wageningen University and Research (WUR); Conference Board Governance
and Sustainability Centre; HCV Network (HCVN) Management Committee (MC)

Level of impact High Medium Low

Olam Group Limited Annual Report 2023 87

Sustainability

Our stakeholders are critical to our

continued success
We value and recognise the importance of maintaining engagement with our stakeholders. We have a commitment to
open and constructive dialogue and to listening to different stakeholder views that help us to share knowledge, improve
understanding, maintain trust and support us to deliver against our strategic, commercial and sustainability priorities.
The table below sets out how we have engaged with each of our key stakeholder groups.

Employees Customers Investors

Why we engage Our employees are our most We strive to be the partner of Our investors and financial
important asset and their choice for our customers. capital providers are
talent, capabilities and Through our collaborations fundamental to enabling us
commitment are critical to we aim to identify, innovate to pursue and execute our
our continued long-term and deliver products, services strategy. We aim to ensure
performance. We are and solutions that meet shareholders, potential
committed to fostering a their needs and unlock investors, analysts and
strong culture and values mutual value. capital providers understand
that enable every employee our strategy, growth
to feel valued and to have potential and performance,
the opportunity to fulfil including ESG impacts.
their potential.

How we engaged We strive to maintain open Our ongoing interactions with We connect with financial
and regular dialogue with customers on a day-to-day stakeholders - including
employees across each of basis, through regular shareholders, analysts,
our businesses through a face-to-face meetings, potential investors, and
range of channels, including virtual sessions and reviews, lenders - at our half-yearly
in-person and virtual mean we continue to be well and annual results briefings
meetings, briefings and placed to serve their and webcasts and
conferences. Leaders provide requirements. We engage announcements of major
regular updates at operating with existing and potential transactions, as well as at
group, business, function and customers at events, forums our shareholder meetings,
country levels, as well as and exhibitions, and including the Extraordinary
encouraging and facilitating participate in virtual and General Meeting in March
engagement within teams. hybrid events that allow us to 2023 and our Annual General
Employees are able discuss both customer, Meeting in April 2023. Senior
communicate, share and industry and sector-specific leaders regularly engage
collaborate through digital focused topics. financial stakeholders on
channels such as Workplace, a broad range of issues,
and our Employee Resource from geopolitical and
Groups (ERG) play a crucial macroeconomic risks
role in providing support and to the progress of our
networks at a local level, such Re-organisation.
as for women and younger
employees. We maintain
regular engagement with
employees and their
representatives across our
markets.

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 Strategic report

Suppliers Communities Government Civil Society

Our suppliers and partners The trust and support of the We engage constructively We engage and partner
play an important role in communities where we work with government, with NGOs, development
helping us to deliver our and operate is essential. policy-makers and organisations, industry
products and services and to In multiple locations and regulators in each of groups and academia
operate our business markets, we provide the markets we operate, to help advance efforts to
efficiently. We work closely to employment opportunities, particularly in relation protect our environments,
build long-term relationships contribute to economic to existing and proposed safeguard farmer livelihoods,
with both smallholder and prosperity, and provide policies and regulations and deliver a more
large-scale farmers across essential support to local which may influence our food-secure future.
multiple supply chains and communities. business and our licence
geographies, underpinned by to operate.
our Supplier Code adapted
for ofi and Olam Agri
respectively. We are also
strengthening relationships
with our key non-commodity
suppliers.

We engage directly with We aim to maintain regular We liaise openly and We actively engage
suppliers across supply chains and open dialogue with our constructively - directly and in industry, sector and
and geographies to ensure communities to listen and alongside industry - with multi-stakeholder initiatives
continuity of supply and to address issues that are national and local as well as directly with
proactively manage risks important and may impact governments, as well as NGOs, universities, research
which come from disruptions. them. Through our day-to- regulators in support of institutions and development
We continue to support day business interactions, efforts to improve food organisations to develop and
farmers and promote direct engagement and security and nutrition, implement projects to deliver
regenerative agricultural partnerships, as well as measures to improve the tangible impacts. Our
practices. Directly-originated multiple channels including livelihoods of farming initiatives and partnerships
volumes of all products were meetings, consultations, households, and are listed on page 87.
sourced through suppliers email and newsletters, we environmental and
engaged on our Supplier are able to share updates sustainable production
Code. For non-commodity and exchange perspectives. practices.
suppliers, Olam Agri has We provide in-kind and
In line with our Code of
established a strategic financial support to
Conduct, all interactions are
supplier programme to strengthen local
compliant with all applicable
strengthen relationships infrastructure, and provide
laws and carried out in a
across key areas such as essential access to nutrition,
transparent manner. We do
marine freight, equipment, healthcare and education.
not support or fund political
fertilisers, pesticides and
parties, candidates or any
packaging.
groups that promote
political interests.

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Sustainability

Areas important to our stakeholders

and potential impact
Areas of impact Level of Potential impact on Relevant SDG Read more
stakeholder interest business/ reputation indicators

Economic Opportunity
Living income High High 1.2, 1.4 Pages 102, 103, 134
Farmers’ productivity Medium High 1.2, 1.4, 2.3, 2.4, 2.a, Pages 93, 97, 102, 104, 110, 126-127,
8.2 134-139
Land rights Medium Medium 1.4 Page 107
Resilience to external shocks High High 1.5, 2.4, 3.3, 13.1 13.3 Pages 93, 99, 103, 105, 126-128, 139
Safe and Decent Work
Safety and health High Medium 8.8 Pages 85, 119-122
Living wage Medium Medium 1.2, 1.4 Page 122
Collective bargaining and freedom High Medium 8.8 Pages 121-122
of association/labour relations
Grievance mechanisms High High 8.8 Pages 121-122
Human rights High High 8.5, 8.7, 8.8, 10.2, 16.2 Pages 37, 54, 104-105, 121
Child labour High High 8.7, 16.2 Pages 103-105
Forced, bonded labour Medium High 8.7, 16.2 Pages 104, 121
Education and Skills
Supporting access to schools Medium Medium 4.1, 4.2 Pages 56, 82, 103-106, 139
Literacy and numeracy Low Medium 4.6 Pages 49, 107-108, 135, 137-140
Youth and next-generation skills Medium High 4.3, 4.4 Pages 78-79, 102, 107
Nutrition and Health
Product safety Medium High 2.1 Pages 52-53, 77, 85, 110
Disease Medium High 3.3 Page 109
Food and nutrition security High Medium 2.1, 2.2 Pages 49, 56, 58, 110-111, 139
Consumer access to nutritious/fortified food Medium Medium 2.1 Pages 34, 55-56, 80, 104, 109-111
Water, Sanitation and Hygiene (WASH) provision Medium Medium 6.1, 6.2, 6.a, 6.b Pages 56, 82, 101, 109-110, 123
Diversity and Inclusion
Women in senior roles in the workplace High Medium 5.5, 10.2 Pages 113-114, 163, 165
Female farmer empowerment Medium Medium 5.5, 10.2, 5.a, 5.b Pages 94, 107-108, 111, 127
Discrimination/racism in the workplace Medium Medium 10.2 Pages 113-114, 121
Climate Action
Science Based Target (SBTi) High High 2.4, 13.2 Pages 68, 92, 125
GHG emissions High High 9.4, 13.2 Pages 28, 37, 56-57, 67-68, 92-94,
128, 141-147
% renewable energy Medium High 7.2 Pages 27, 35, 55, 58, 96, 108, 110,
128, 145
Packaging (renewable, recyclable etc.) Medium Low 12.5 Pages 36, 38, 98
Healthy Ecosystems
Deforestation High High 11.4, 15.1, 15.2 Pages 56, 92, 95-96, 128-129
Biodiversity Medium Medium 15.5, 15.7 Pages 38, 50, 55-57, 78, 81-82, 95,
99, 126
Healthy landscapes Medium High 15.1, 15.2, 15.3, 15.b Pages 37, 39, 56-57, 95-96, 99,
127-128, 141
Healthy Soils
Soil degradation Medium High 15.3 Pages 48, 50, 55, 57, 92-96,
99-100, 127, 135, 140-141
Pesticides/herbicides Medium Medium 15.3 Pages 100, 127, 143, 145-147
Fertiliser access/overuse Medium High 15.3 Pages 143, 147-148
Water
Water stress/scarcity Medium Medium 6.4 Page 101
Protection of water courses Medium Medium 6.3, 6.6 Pages 95, 97, 101
Effluent/wastewater Low Medium 6.3 Pages 144-145
Food Loss and Waste
Post-harvest losses Medium Low 12.3 Pages 56, 92-94, 98, 127
Consumer food waste Low Low 12.3 Pages 36, 98
How We Work
Anti-bribery and corruption Medium High 16.5 Pages 86, 182
Ethics and compliance High High 16.5 Pages 85, 122, 182
Transparency and traceability High High 16.6 Pages 30, 36-39, 54-55, 69, 72, 86,
92, 95-96, 128
Animal welfare Medium Medium 2.3, 2.4, 15.7, 15c Page 28
Supplier Management High High 12.2, 12.6 Pages 38, 53, 71, 86, 89, 95, 128
Community Relations High Medium 12.8 Pages 56, 82, 89, 102-111, 138

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In May 2023, the independent assessment on Olam Palm working with cashew communities for over a decade, in 2021
Gabon’s palm development in Gabon was published by setting ourselves formal public targets for five key areas in
the Forest Stewardship Council (FSC®). The assessment our Cashew Trail strategy – Improved Livelihoods, Education
concluded that over 24,000 hectares of forest were cleared, and Skills, Nutrition & Health, Diversity & Inclusion and
as well as between 900 ha and 1,823 ha of non-forest areas Climate Action. In our response to Mighty Earth2, we highlighted
with High Conservation Values (categories 1 to 4) in its Moulia (among other critical areas) that with climate-smart training,
Lot 3 concessions. The vast majority (approximately 99%) of farmers better understand that cashew has an important
the HCVs 1 - 4 areas in Mouila Lot 1, Mouila Lot 2 and Awala role to play as part of a diverse landscape with other crops,
were not impacted. Olam Palm Gabon protects more than in mixed agro-forestry systems, and not replacing natural
105,000 ha of HCV lands in Gabon and Olam Palm Gabon ecosystems with high conservation values. We also responded
and Mighty Earth are working to address the areas identified to Mighty Earth on a report into deforestation in the Ghana
to develop a suitable remediation plan. cocoa sector and to Associated Press on allegations of
deforestation in the Nigeria cocoa sector. For more information
In 2023, ofi’s cocoa team in the Netherlands engaged with on how we address deforestation challenges in the cocoa
the government and an environmental NGO regarding supply chain, see the Cocoa Compass Impact Report
emission levels of ammonia from our Koog aan de Zaan published in February 2024.
cocoa facility and changes to our permit when some of our
‘situation-specific provisions’ were annulled by the court. Delivering ofi’s ingredients and products to customers safely
In the cocoa-processing sector, ammonia is emitted during and in accordance with applicable law is the bedrock of our
the production process as part of alkalisation or ‘dutching’, quality and compliance programmes. It is essential that we
which darkens the colour and modifies the flavour of cocoa keep on top of the rapidly-changing regulatory frameworks
nibs and the drying/roasting of cocoa nibs before they are across our multiple markets. We are vigilant in monitoring
turned into cocoa powder. We recognise the impact of all and maintaining the standards and requirements of
emissions from agriculture and industrial processes on the governments and various legislative bodies. We follow the
environment, which is why we have time-bound goals in our systematic preventative approach called Hazard Analysis
Cocoa Compass ambition and why we remain focused on Critical Control Point (HACCP) to control physical, chemical
working with the authorities to achieve our shared aim of and biological hazards across our operations. If a food
lowering emissions and protecting local biodiversity. In July quality or safety incident occurs, we take immediate steps
2023, we reached an agreement with the authorities and the to address it. This includes undertaking a thorough root
environmental NGO (MOB1) that gives us an ambitious but cause analysis and implementing the corrective actions
realistic timeline to implement the Best Available Technique to avoid a recurrence. In the reported year, ofi executed
technology to reduce our ammonia emissions while we continue a voluntary recall due to detection of salmonella in onion
to supply customers with high-quality Dutch cocoa ingredients. powder. No consumer ill‑health was reported.
The ammonia emissions emitted by our facility in Koog are
harmless to people, which is confirmed by independent Following some concerns in the media about our Nigerian
research commissioned by Noordzeekanaalgebied operations, an independent internal investigation was
(Environmental Agency North Sea Canal Area) and launched by the Olam Group Board and its Audit & Risk
published by the Local Council of Zaanstad. Committee comprising external counsels and independent
auditor. As announced on February 19 2024, the investigation
Any reports of illegal deforestation are deeply concerning. concluded with the team finding no evidence supporting
That’s why we work with our partners, NGOs and any of the specific allegations reported. All our businesses
government bodies to identify and address possible in Nigeria have been operating normally and we look forward
instances in our supply chain. The ofi Agri Supplier Code to continuing investing and growing in the country.
stipulates that our suppliers must not source from, nor deliver
products to ofi resulting from the destruction of important
natural habitats, including legally protected areas. Any
supplier found to be illegally deforesting will be removed from
our supply chain. The social and environmental challenges of
the production of cashew in Côte d’Ivoire were highlighted in
a report on the sector by Mighty Earth. At ofi we have been

1. Milieuorganisatie Mobilisation for the environment

2. https://www.mightyearth.org/wp-content/uploads/Cashew-Industry-Responses-to-Mighty-Earth-Cashew-Research-Findings-November-2023.pdf

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Sustainability

Environment

Our planet is facing the immediate and urgent problems of climate change, land degradation
and biodiversity loss that need joint and prompt actions. We collaborate with partners to help
preserve our environment, reduce our emissions, and strengthen climate resilient supply chains.
With our customers and other partners, we have continued making progress over the course
of the year on tackling our climate impacts, safeguarding ecosystems and biodiversity,
improving water stewardship, cutting down food loss and waste, and restoring soils.

We are focused on reducing our carbon footprint and are

signatories of the Business Ambition for 1.5°C coordinated by Terrascope
the Science Based Target initiative (SBTi). In line with the SBTi
A digital platform which enables companies to measure
FLAG (Forest, Land and Agriculture) guidelines released in
their emissions comprehensively and accurately while
2022, we are developing our near-term targets, segmented
giving them the ability to take action and track progress
into FLAG and non-FLAG.
to chart decarbonisation – has been selected as the
Climate action partner of choice by companies in APAC, Europe,
Middle East and Australia to support their net-zero
Climate change impacts, such as drought and flooding, goals. These carbon footprinting tools help us identify
may affect crop yield and quality, farmer livelihoods and what we need to do and where – in our factories and
our own volumes. We drive climate action across the supply on our participating farms.
chain, exploring decarbonisation pathways which help our
customers meet their own science-based targets and add
value to our ingredients. accounting for the carbon stocks of each ecosystem. The
solution was first tested in Ghana, Côte d'Ivoire and Brazil
As an SBTi signatory, Olam Group’s operating groups - ofi
which have comparably high land use emissions linked to
and Olam Agri - have been actively reviewing setting targets
high risk of deforestation. We expect to use the insights and
in line with SBTi guidelines, and have taken part in an inclusive,
learnings to improve our existing land use change (LUC)
global development process to review draft GHG Protocol
methodology and scale it across all our origins and
Land Sector and Removals Guidance, published in 2022.
commodities in our supply chain.
As part of this process, we reviewed the specific requirements
for land use, land management and land removal impacts by As part of our decarbonisation strategy development, in 2023
forest and agricultural companies, and advised on methodologies Olam Agri screened over forty project ideas and identified
based on our own experience of implementing sustainable key pathways to reduce emissions (such as through alternate
farming and decarbonisation strategies. wetting and drying in rice and improved fertiliser management)
and sequester carbon (such as through improved soil practices,
In line with The Greenhouse Gas Protocol, we use the three
afforestation and biochar). Olam Agri developed a framework
Scopes to measure our carbon emissions - direct emissions
to evaluate projects, taking into consideration their
from owned or controlled sources (Scope 1), indirect emissions
decarbonisation potential; financial and non-financial value
from purchased energy (Scope 2), and indirect emissions
creation for business, communities and the environment; and
that occur in the value chain (Scope 3). We seek to continually
operational feasibility. In addition to nature-based solutions,
improve the accuracy of our carbon footprint measurements,
our approach to reducing emissions across our upstream assets
using Lifecycle Analysis tools such as the Digital Footprint
and supply chain focuses on energy efficiencies and renewables,
calculator in our AtSource sustainability management system,
traceability and no-deforestation commitments. To support
and our corporate footprint accounting tools such as our
this, in collaboration with Bain & Company, we developed a
climate technology venture, Terrascope.
model that estimates the carbon mitigation potential for all
Robust and credible data on emissions from land use change of these decarbonisation levers across multiple commodities
is essential to our footprinting efforts. ofi worked with and geographies. Some of our ongoing initiatives cover:
international experts AdAstra to calculate spatially-explicit
• Sustainable rice farming
land use change emissions, using their Orbae methodology
• Sustainable forest management
which analyses land conversion impacts in all levels of
traceability - from farm to jurisdiction to country level. • Regenerative agriculture to sequester carbon in soils
It records changes in land use to a resolution of 30 metres and plants
and calculates greenhouse gas (GHG) emissions over time, • Reducing post-harvest loss from inefficient processing,
drying and storage.

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ofi wins the Sustainability Innovation

Award with its Carbon Scenario Planner
For the second year in a row, ofi picked up the
Sustainability Innovation Award at Food Ingredients
Europe. The 2023 Award recognised ofi’s Carbon Scenario
Planner (CSP) - designed by our climate footprinting
experts - to address the complexity of tackling Scope 3
emissions. The CSP is a key activation tool to support the
18 decarbonisation projects ongoing in our cocoa and
coffee supply chains, and on our pepper estates in Brazil
and Vietnam. For one particular customer - a global coffee
customer we supply with beans from Guatemala - we used
it to develop a 32% carbon reduction scenario. We have
been able to identify three impactful scenarios: training
farmers to upcycle coffee waste, replacing chemical
fertiliser with an organic one, and providing farmers
with semi-mechanised tools to improve yields.

Our approach to reduce emissions associated with farming practices

Our goal is to reduce the emissions associated with farming practices across our sustainability programmes, including
our own operations, and to support climate resilience. Our approach has four key elements, please see below.

Adapt Resilience Regenerate Reduce

Helping farmers adapt to In this instance, supplier Through improved crop Reducing emissions by
the impacts of climate resilience specifically. rotation, composting, sequestering carbon in
change by improving Enabling farmers to mulching, soil erosion soils and trees through
their skills to implement increase their household control, integrated soil regenerative agriculture,
better farming practices, incomes by promoting fertility management and agro-forestry, and
and their access to crop diversification, as integrated pest reforestation initiatives;
technology such as well as other income management, helping reducing post-harvest
irrigation equipment and opportunities such as farmers to regenerate loss from improper
higher-yielding, climate beekeeping. Additionally, their soils and processing, drying and
resilient seed varieties. we are strengthening ecosystems. storage; and reducing
local farmer methane emissions from
cooperatives, improving rice farming and coffee
access to savings and washing stations through
loans facilities, and better water management
crop insurance. practices.

Olam Agri’s freight business has invested in the Zero North platform which enables operational efficiency
and integration of otherwise siloed shipping processes across chartering, vessel maintenance, route planning
and bunkering. This integrated application enables emission reduction through the following key levers:
• Improved vessel selection process by monitoring the Carbon Intensity Indicator (CII).
• Voyage optimisation through access to various shipping data and integration of such data into the Company’s
fleet management systems. More efficient route planning contributes to efforts to reduce ballast legs.
• Vessel optimisation by monitoring vessel performance. As a result of such monitoring efforts, the frequency
of hull cleaning is increased to improve performance efficiencies.
• Bunker optimisation by predicting and simulating optimal bunker plans. This informs the consumption of higher
quality fuels that are more energy efficient.

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Sustainability

On-farm emissions in our supply chains - Scope 3 - is by far

the biggest contributor to our footprint. To reduce emissions,
we work closely with farmers to incentivise and implement
climate-smart measures, and our award-winning Carbon
Scenario Planner - built into AtSource - allows us to model
and recommend the most cost-effective methods. Our AtSource
Digital Footprint Calculator (DFC) delivers to customers their
total carbon footprint with a detailed breakdown across the
supply chain - from the farm itself through to processing
and final delivery to the customer. We measure the carbon
emissions associated with factors such as land use change, Olam Agri leads the way with
fertiliser, crop residues, irrigation and energy use, and climate-smart farming practices
transportation - and for some supply chains, the quantity in rice cultivation in India
of carbon sequestered in soil and trees. Beyond the farmgate,
we have been working to drive down Scope 1 and 2 emissions Wet rice cultivation is a large contributor to methane
in our processing facilities using crop biomass residues and emissions because flooded fields create conditions that
investing in clean energy initiatives. are conducive to methane-producing bacteria in the soil.
Smallholder farmers produce most of the rice harvest,
Olam Agri is among more than 20 corporate and research and women take on a large share of the work involved
partners in the food sector that make up the World Economic in rice cultivation and post-harvest activities. They do
Forum's (WEF) pioneering First Movers Coalition for Food, so without equal recognition or status and so are
supported by the Government of the United Arab Emirates. particularly vulnerable to the impact of climate change.
This will create market demand for sustainably-produced Olam Agri is actively working with GIZ and our
and low-emission agricultural products that support transition consortium partners - IRRI (International Rice Research
to net-zero, nature-positive food systems, potentially up Institute) and UN Women - on the CORE (Carbon
to US$20 billion in value. The Coalition brings together Offsetting Rice Emissions) India project to introduce
corporate champions from multinational and regional climate-smart farming practices and promote gender
companies with significant purchasing power, value chain equality in rice farming in India. As one of the largest rice
partners and farmer organisations, and is expected to merchants globally, our goal is not only to make the rice
publish initial results of its collaborative work in the summer supply chain more resilient and environmentally
of 2024. sustainable, but also to enable and empower more
women farmers by providing equal access to resources
and opportunities.

Olam's total emissions in 2023, collected through Terrascope

(Million Metric tCO2e)
81.54 0.69 0.25 0.16 0.13 87.40
2.15

25.32

4.37 0.25
59.92
Scope 1 Scope 2 Scope 3 Scope 3 Scope 3 Scope 3 Scope 3 Total Breakdown
Purchased Fuel & Downstream Waste Upstream emissions
goods and energy-related leased assets disposal transportation
services activities & distribution

Percentage of 5.01% 0.29% 93.28% 0.79% 0.28% 0.18% 0.15%

total emissions
ofi Olam Agri OGH

Notes:
• We have applied the latest version of emission factors from Ecoinvent (version 3.10), DEFRA 2023, IEA 2023, agri-footprint (version 6.3) in line with industry
best practice to utilise latest up-to-date emission factors.
• Freight business: 3.05 million metric tCO2e.
• Biogenic carbon: 2.10 million metric tCO2e arising from carbon dioxide emissions from biogenic sources have been categorised under 'biogenic carbon' which
is outside scopes 1, 2 and 3, in line with the Greenhouse Gas Protocol Agricultural Guidance. This accounting treatment of biogenic emissions is expected
to undergo some changes as an updated guidance 'GHG Protocol Land Sector and Removals' is expected to be released later this year.

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 Strategic report

Ecosystems and biodiversity ofi and EUDR

Regenerated ecosystems are key to our vision of living Our integrated business model, our systems and technology
landscapes. For farmers and communities to prosper, to solutions, plus the additional actions we are taking, will help
protect our complex and delicate ecosystems, and to support us to meet the EUDR obligations ahead of them becoming
the circular economy, we need to take a holistic approach. enforceable at the end of December 2024. Our existing
Responsible stewardship of farmlands must increasingly be traceability and information systems already provide much
coupled with nature restoration and protection of the of the data required for compliance and are being enhanced
biodiversity and ecosystems in the supporting landscape, to ensure support for EUDR compliance. For direct supply
including water catchments, forests and natural ecosystems, chains, this includes the extensive farmer data gathered
especially those with high conservation value. We map through our Olam Farmer Information System (OFIS) that is
forest, biodiversity, soil quality and water risks across our supported by our AtSource sustainability management
origins, and we also work closely with our partners to identify system. We are using both GPS points and polygons to
high-risk hotspots. progressively map farms - with over 960,000 cocoa and
coffee farms mapped by the beginning of this year - so that
Agriculture Sector Roadmap to 1.5°C we can accurately assess the history of deforestation, issue
At COP26 in 2021, Olam Group signed up for the Agriculture alerts to country managers, measure land-use change
Sector Roadmap to 1.5°C and Olam Group operating groups emissions - and monitor or remediate through enrolment
support the soy, palm and cocoa sectoral roadmaps. The and training of farmers in sustainability programmes.
group signatories have established a series of working ofi was also selected as one of 100 companies that will pilot
groups to coordinate our independent efforts, and we the EUDR’s deforestation information system from January
actively engaged and advanced several initiatives that allow 2024. The information system will contain the due diligence
us to drive the impact at scale needed to achieve long-term, statements submitted by operators and traders to ensure
sustainable change. compliance with the EUDR requirements. Our history of
All signatories are committed to halting deforestation linked working to end deforestation in cocoa and coffee smallholder
to soy areas in the Chaco, Cerrado and Amazon biomes by supply chains - through traceability, promoting agro‑forestry
2025, and the conversion of non-forest primary native and advancing sustainability programmes - will help ofi and
vegetation no later than 2030. We will use data from our customers to meet the EUDR obligations ahead of them
PRODES (INPE) - the official Brazilian government system - becoming enforceable by the end of December 2024.
for monitoring deforestation and conversion of native Last year, our teams delivered training and support to
vegetation in the Cerrado and Amazon biomes, and for the over 530,000 farmers across ofi supply chains to enable
Chaco biome, we will leverage official systems from the them to grow more on less land and incentivise more
governments of Argentina and Paraguay in addition to other environmentally-sound practices.
available tools. To give a comparable total land area, the
protected area would be 3.5 times the size of
Olam Agri and EUDR
Germany. As an independent signatory, Olam Agri is Olam Agri has a long-term focus on reducing deforestation
committed to increasing transparency across the soy value in smallholder supply chains and advancing sustainability
chain, monitoring and increasing traceability within high-risk programmes, sourcing policies, traceability solutions and the
areas. In addition, ofi is an independent signatory of the additional monitoring actions means that we are well-placed
TFA Agri Sector Roadmap to 1.5°C. to meet the EUDR obligations before they become
enforceable at the end of 2024.
All 11 signatories of the palm sector trade roadmap to 1.5°C,
including ADM, Bunge, Cargill, COFCO International, GAR, • Rubber: The origin of rubber sales to the EU is Côte
LDC, Musim Mas, Wilmar, Olam Agri, ofi and Viterra, are d’Ivoire where we have complete traceability. We
participants of The Palm Oil Collaboration Group (POCG). currently use SAP for traceability and each pallet sold is
Throughout 2023, we have been working together with each barcoded and gives detailed chain of custody
other and the rest of the palm oil supply chain to support the information. Using the Olam Farmer Information System
implementation of the roadmap. Under this roadmap, Olam (OFIS), each supplier is traceable to the plantation by
Agri strives to have all palm oil volumes in the ‘Delivering’ GPS coordinates, and when we onboard a new supplier,
category of the NDPE IRF (No Deforestation, No Peat, we conduct a detailed Know Your Customer (KYC) check
No Exploitation Implementation Reporting Framework) including a deforestation assessment using Global Forest
by 2025. For more details, please refer to the roadmap. Watch Pro.
• Wood: The EU is a significant customer location for our
Updates on the EU Deforestation wood business, and with all wood sold to the EU sourced
Regulation (EUDR) from our natural forest concessions spanning 2.1 million
By the end of 2024, any company that either places products hectares in the Republic of Congo managed to the highest
on or exports from the EU market is required under the EU standards in line with the FSC®1 (Forest Stewardship
Deforestation Regulation (EUDR) to carry out due diligence Council), where we have complete traceability, with
to ensure that any products within its scope - palm oil, cattle, chain of custody from forest to the final product. In
soy, coffee, cocoa, timber and rubber - as well as derived the harvestable areas, we strictly apply Reduced Impact
products (such as tyres or beef) are deforestation free. Logging (RIL) techniques and harvest at levels significantly
below regulatory requirements. Our approach is based
on a selective harvesting model defined by the natural
1. Certified license numbers are: FSC-C014998 / FSC-C128941 /
FSC-C104637 / FSC-C156094 / FSC-C005457.
regeneration capacity of the forest.

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Sustainability

• Soy: Olam Agri’s sale of soybeans to the EU form an

insignificant portion of our total soy trading business, Net-zero innovation - success
but regardless of volumes we are committed to ensuring at the 2024 Edie awards
compliance with the EUDR.
A carbon sequestration monitoring tool built by ofi
• Palm: Whilst Olam Agri’s palm sector volume in Europe - in collaboration with Google geospatial partner NGIS
is negligible, regardless of volumes we are committed - was shortlisted for Net-Zero Innovation of the Year at
to sustainable and traceable supply chains with the aim the 2024 Edie awards. The tool combines data from ofi
of delivering all palm volumes as NDPE (No Deforestation, polygon-mapped farms and satellite data with machine
No Peat, No Exploitation) fully traceable to farms by 2025, learning techniques to build models in Google Earth
as per our commitment towards the 1.5°C Agriculture Engine. It calculates the total above ground biomass
roadmap. (AGB) vegetation above the soil - such as stumps, trees
In 2023, Olam Agri installed a large solar farm at our rice mill and foliage - and how much carbon is present in each
facility in Nigeria, following the successful implementation of plot. The data is helping ofi to identify areas at risk of
a similar initiative at our head office in Lagos. The solar farm deforestation, and to prioritise conservation efforts in
at the rice mill is projected to generate about 2,500 units of the form of reforestation and buffer protection in
electricity each day with a peak capacity of 713 kW. The Côte d’Ivoire, Guatemala, Cameroon and Brazil.
electricity generated by the solar farm will mainly be used to
power our rice factory. This means that our production
processes will be more sustainable, reliable and resilient,
ensuring uninterrupted supply chains and high-quality
products for our customers.

Did you know?

ofi relies on natural pollinator populations to make
sure our almond orchards produce year after year.
Our teams in California and Australia deploy various
measures to balance pest control, while fostering bee-
friendly communities, in line with California’s
Pollinator Partnership and the Australian Bee Friendly
Farming certification best-practices. These include
sowing annuals in orchards, providing clean drinking
water for the bees, and practising Integrated Pest
Management (IPM) during the pollination Successful traceability with Rubber
period. Under the KIND Almond Acres Initiative with
KIND Snacks, a Mars brand, we are combining new
IMPRINTS as Olam Agri gears up for
technologies with best practices from regenerative EUDR
agriculture across 500 acres of our almond orchards As evidenced in our Living Landscapes Policy, Olam Agri
in California. The partnership is working towards the is a member of the Global Platform for Sustainable
brand’s goal to source 100% of its almonds from Natural Rubber (GPSNR), and as part of our commitment
orchards leveraging regenerative agriculture to ‘transform the natural rubber supply chain into a
practices on a mass balance basis by 2030. sustainable, equitable and fair one’, our business in Côte
d'Ivoire and Indonesia has officially launched its first
sustainability project - Rubber IMPRINTS, which stands for:
• Identification
• Mitigation of Potential Risk
• In Navigating the Transformation of the Supply chain.
The initiative commenced with a traceability project
starting in our own Côte d'Ivoire operations and Lampung
in Indonesia with one of our partner processors in
preparation for the EUDR. So far, we have onboarded
over 4,000 direct farmers in Côte d'Ivoire and nearly
5,000 suppliers in Indonesia covering more than
20,000 ha. As part of our ongoing efforts to mitigate
risk across the supply chain, Rubber IMPRINTS has also
conducted awareness training on sustainability including
the environmental issues, labour and human rights to the
upstream third-party suppliers including factories to fill
the sustainability gap.

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A Landscape Approach to Sustainable

and Climate Change Resilient Cocoa
and Coffee (LASCARCOCO)
ofi has created a new three-year partnership with USAID,
non-profit organisation Rikolto, the Hershey Company,
and the Indonesia government to promote sustainable
cocoa and coffee production in Indonesia. A Landscape
Approach to Sustainable and Climate Change Resilient
Cocoa and Coffee (LASCARCOCO) aims to support
6,500 farmers to increase their yields by 25%, and
conserve 14,000 ha of the watershed and riparian
buffers by the end of 2025.

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Sustainability

Food loss, packaging and waste ofi’s sustainable solutions garner

A third of the food currently produced globally never reaches recognition
our plates, and - in the markets in which many of our supply
chains operate - as much as 40% of food is lost during Two circular biomass boilers entered operation at ofi’s
harvest, drying, storage and transport. As Olam continues to cocoa-processing factories in the Netherlands and
work towards transforming agriculture for a more Germany, reducing greenhouse gas emissions. The boilers
sustainable and food-secure future, our goal is to cut this use cocoa shells - a by-product of the production
loss in half by 2030. Key to this is helping our smallholder process - as fuel to generate steam, which in turn powers
farmers work more efficiently and sustainably, and generate the crafting of cocoa ingredients from ofi’s premium
higher yields and additional income for themselves. brand, deZaan, at its factories in Koog aan de Zaan, the
Netherlands and in Mannheim, Germany - where it will
In 2023, Olam Agri completed our post-harvest baseline be the first cocoa shell boiler of its kind in the country.
study covering ten supply chains across seven countries. This The boiler at Koog aan de Zaan was partly funded by a
baseline has given us valuable insights which help us target subsidy from the Netherlands Enterprise Agency (RVO)
the hotspots where losses occur. In our wheat supply chain in and took over four years from concept to completion. It
Nigeria, we have successfully piloted three technologies to will reduce natural gas usage and CO2 emissions at the
address losses during the harvesting (motorised harvesting) facility by 50%. The second boiler at ofi’s factory in
and storage (low-cost moisture analysis for farmers Mannheim has been developed through a joint venture
combined with hermetic storage) stages. We endeavour with energy company MVV. It has the potential to provide
to select technologies that are both effective at reducing up to 90% of the steam needed to power the facility,
post-harvest losses and are accessible and user-friendly saving approximately 8,000 tonnes of CO2 annually.
to meet the needs of smallholder farmers. We aim to The new roll-out adds to the circular biomass shell boilers
replicate these successful pilots across other supply chains used in ofi’s cocoa factories in Brazil, Côte d’Ivoire,
and scale them organically. Olam Agri maintains our Indonesia and Singapore. This latest move forms part
engagement through our role as Co-Chair of Champions of ofi’s ambition for sustainable cocoa - Cocoa Compass
12.3, our membership of the World Business Council for - which sets ambitious goals - including a 30% reduction
Sustainable Development (WBCSD) Task Force on Post- in Natural Capital costs by 2030.
Harvest Loss, and co-leadership of the Sustainable Rice
Platform (SRP) Food Loss and Waste Task Force. In another initiative, a sustainable packaging solution
created by ofi’s Club Coffee business - one of North
We have developed a process to sun dry coffee pulp and skin America’s largest coffee roasters - was singled out as the
so that it can be upcycled to use as an ingredient for adding most innovative product offering at the 2023 Reuters
to a wide range of food and beverage applications, ofi’s Responsible Business Awards. AromaPak™1 featuring
coffee team are applying this to source cascara from our Boardio®2 technology uses recyclable paper-based
estates in Laos, Tanzania and Zambia, and from farmers packaging made from renewable, high-quality tree fibre
across our sourcing network in Democratic Republic of Congo, from sustainably managed forests and was developed to
Indonesia, Guatemala and Peru. This example of waste address high volumes of packaging waste from coffee.
valorisation (the process of reusing, recycling or composting The judges said Club Coffee’s technology is an inspiring
waste materials and converting them into more useful solution for a phenomenal problem’.
products including materials, chemicals, fuels or other sources
of energy) provides both economic and environmental
benefits, allowing us to contribute to a more circular and
sustainable coffee production process. ofi’s spice business
has also applied upcycling to develop a new line of rainbow
sauces utilising ‘rescued’ purees from seed production. The
sauces, which include ‘Scorpion, Truffle & Agave’ and ‘Red
Pepper Honey Sauce’, are certified by the Upcycled Foods
Association and will help reduce our on-farm and processing
footprint by diverting organic waste from landfills.

1. AromaPak™ - A registered trademark of Club Coffee L.P.

2. Boardio® - A registered trademark of GPI Sweden AB

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Healthy soils In order to identify land degradation hotspots in sourcing

regions for cotton, sesame, rice, rubber, wheat, quinoa and
Healthy and climate-friendly food needs healthy soil. chia in seven countries, Olam Agri harnessed geospatial tools
The success of farming across the world depends upon it. and looked at indicators for soil moisture, NDVI (Normalised
One-third of the Earth’s land area is affected by degraded Difference Vegetation Index), soil organic carbon, fire
soil, exacerbated by poor management practices, population incidence and canopy cover loss, across the five-year period
pressures and the widespread use of fertilisers and synthetic from 2016 to 2021. In 2023, we developed metrics for multiple
nutrients. The cost to the environment and to the farming practices under soil, water and biodiversity based on the six
economy is enormous. Olam is committed to the advancement principles under regenerative agriculture (as detailed in Olam
of regenerative agriculture practices to protect and restore Agri business section on pages 41 to 58.) We aim to score
degraded soil. various businesses where we have farmer programmes,
Nature-based solutions including regenerative agriculture based on those six principles. This scorecard will help us
to help address physical and transition risks through the prioritise efforts on regenerative agriculture in our supply
multiple services provided by ecosystems in terms of climate chain for the commodities we trade.
adaptation (e.g. water management, adaptation to disaster In addition to this, Olam Agri has launched the largest
risks and support to livelihoods resilience) and climate certified regenerative agriculture programme in the cotton
mitigation (carbon storage). supply chain globally, which got certified by regenagri®
in the United States (US) and Côte d’Ivoire with Australia
Regenerative agriculture and Brazil to follow this year (2024). The new programme
Regenerative agriculture is an approach to food production is the culmination of existing regenerative agriculture work
that works with nature to build and restore Natural Capital and will offer customers cotton products with full chain of
(soil, water, biodiversity and carbon) on and around farms custody certification from production, harvesting, ginning
while optimising inputs and ending harmful and destructive and storage to shipment. All farms and ginning facilities
practices. under the programme are regenagri® certified. A total of
Towards this goal, Olam Agri joined the COP28 Action more than 250,000 ha of land, 20,000 farm enterprises and
Agenda on Regenerative Landscapes flagship initiative both of Olam Agri’s ginning facilities that process
led by the COP28 Presidency, the World Business Council 100,000 metric tonnes of seed cotton in the country have
for Sustainable Development (WBCSD), and the Boston been regenagri® certified. For more information on our
Consulting Group (BCG). It is supported by the UN High approach visit the Olam Agri business section on pages 41
Level Climate Champions (HLCC) and has made a clear, to 58.
bold commitment to aggregate, accelerate and amplify
existing efforts and new commitments in order to transition
large agricultural landscapes to regenerative landscapes
by 2030. We seek to positively impact the sustainability
and resilience of food and agricultural systems, and we
continue to make progress on existing industry initiatives.
Olam Agri is also a member of the Sustainable Markets
Initiative’s Agribusiness Task Force, which has launched
a new blended finance framework to unlock financing for
regenerative agriculture.

Soil Water Biodiversity Carbon

Improving soil health Implementing better water Promoting on-farm Applying climate-smart
composting, cover cropping management with irrigation biodiversity with integrated practices
and erosion control technology pest management,
intercropping agro-forestry,
wildlife corridors

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Sustainability

In Brazil, ofi provided coffee farmers in our sustainability

programmes access to cover crop mixtures to improve soil
health while creating a habitat for natural pest predators. Did you know?
This helps the soil retain more carbon and requires less In Peru, Olam Agri field technicians train quinoa
energy spent on chemicals and fuel-operated machines for and chia farmers on organic farming practices, as
chemical application. In Brazil, we’ve replaced all pesticide part of a five-year project supported by USAID and in
application on our pepper estate with biological control collaboration with the local government. As of the end
agents, which include beneficial fungi like Trichoderma. of 2023, over 2,000 smallholder farmers had
Drawing on knowledge and learnings from soil analysis achieved organic certification, enabling them to
conducted on our coffee estates, our team in Guatemala is improve soil organic matter and fertility, better access
partnering with Starbucks to support coffee farmers with soil markets, and increase their incomes.
analysis and fertiliser optimisation. Nitrogen fertiliser
stimulates biomass growth and input into the soil but Almonds are the lead ingredient in over 45 KIND
applying too much nitrogen does not increase plant growth products. KIND decided to test and learn how to grow
and increases decomposition of soil organic carbon. their number one ingredient more sustainably by
Ultimately the project is encouraging farmers to improve soil launching the KIND Almond Acres Initiative. This
fertility management for economic and ecological reasons. introduces a mix of new technologies with best practices
from regenerative agriculture across 500 acres in
California, where 80% of the world’s almonds are
grown. ofi owns the almond trees on the project acres
and will be implementing the practices on the ground
in partnership with KIND, including: cover crops,
subsurface irrigation, whole orchard recycling,
compost and biochar and off-ground harvesting.
Read more about the KIND partnership on page 96
of this section and in the ofi chapter on page 29.

100 olamgroup.com
 Strategic report

Water Olam Group processing water usage

Water stewardship is critical to managing freshwater

resources in our operations and across our supply chains.
We are a signatory to the UN CEO Water Mandate, a UN

10,284,151
Global Compact initiative, that mobilises business leaders on
water, sanitation and Sustainable Development Goals.
Supporting the Mandate contributes to our strategy to
mitigate, understand and manage our water risks.

5,072,000
When it comes to protecting the environment, water quality
is vital. One such example of how Olam safeguards the water
we utilise is via Olam Palm Gabon’s (OPG) operations.
OPG carries out consistent checks to ensure that there is no

2.03
impact on the river from their operations. They have set up
buffer zones - wide margins which mean that every river that
Total water Production Water
goes through the plantation is generously buffered with huge usage (m3) volume (MT) intensity
areas of natural habitats to absorb any water from the (m3/MT)
plantation. In 2023, OPG continued to monitor and control Remaining Olam Group 1,982,732 515,501 3.85 ofi
the water quality, and ongoing tests by third-party labs have Olam Agri 1,086,037 2,873,758 0.38 O
quantified that there has never been any cross-contamination.
ofi 7,215,381 1,682,741 4.29 Re

Olam Agri and the Thai Rice Green

Climate Fund (GCF)
Olam Agri is involved in the Thai Rice Green Climate
Fund (GCF) ‘Strengthening Climate-Smart Rice Farming’
project, together with GIZ and the International Rice
Research Institute (IRRI). As the first GCF project for
Olam Agri - approved in October 2023 - we will support
the building capacity of smallholder farmers and
extension services on climate-smart rice farming in
Thailand, which includes alternate wetting and drying
(AWD), nutrient management and other sustainable
agriculture practices. It will strengthen market linkages
and standards for sustainable rice and biomass residues,
by potentially providing a bonus incentive through
sourcing of rice from farmers who comply with the Thai
Agricultural standard (TAS) - or equivalent standard -
market linkage facilitation with rice traders and millers,
and biomass residue market development.

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Sustainability

Social

From the large, mechanised farms in the US, Brazil and Australia growing peanuts, garlic,
cotton and almonds, to the small, manually-farmed plots typical of our cocoa, coffee,
rice and cashew suppliers, millions of farmers provide us with raw materials.

Many farmers in our supply chains are smallholders with

a few hectares (ha) of land, who produce a lot of crops for
food but face many difficulties. These include poverty, climate
change, unsustainable farming practices and post-harvest
loss. We imagine a future where farmers can earn enough to
maintain a decent standard of living for themselves and their
families, where everyone has better nutrition and food security,
where unacceptable labour practices are eliminated, and
where there are more equitable work options and economic
opportunities for women and youth.
We aim to enhance the livelihood of our farmer suppliers and
improve their communities through our programmes, training
and outreach, focusing on areas such as productivity, resilience
and profitability, as well as inclusion, nutrition and health,
and human rights. We use our expertise – from agronomy
and supply chain efficiency to digital services and data
insights – to support our programmes. We know we need
to work with others, and we collaborate with different public
and private sector partners to find and apply practical The Living Income Community of Practice
solutions that can deliver long-term, positive effects.
(LICOP) is an alliance of partners dedicated
Economic opportunity to the vision of thriving, economically stable,
Improving the viability of farming for producers is vital for rural communities linked to global food and
improving livelihoods and safeguarding the future of our agricultural supply chains. One of the many
ingredients and raw materials. It is an imperative we share
with our customers, governments, peers and other partners.
goals of LICOP is to increase understanding
In 2023, through these partnerships, our in-country field of living income and identify and discuss
teams helped enhance farmer livelihoods by providing strategies for closing the living income gap.
support such as training, agricultural inputs, credit and We are grateful for the active involvement
infrastructure to more than 940,000 farmers within our
global sourcing network. Our teams have helped them of both ofi and Olam Agri in our community.
improve yields and quality, maximise their return on labour Since its inception, they have funded
and investment, and diversify income streams. Our teams publicly-available living income benchmarks,
of agronomists and plant scientists continually seek the
created open-source tools - such as the
best techniques and interventions to help farmers optimise
their yields of high-quality crops in a sustainable way. We forthcoming LIGHT tool - shared best
channel these insights into the sustainability programmes practices and openly discussed challenges
we design with our partners to address economic, social they have encountered. Their thoughtful
and environmental impacts. The additional income that
supported farmers can earn means that households are
involvement in numerous meetings,
better able to invest in their farms, send their children to webinars and research with partners helps
school, and cover basic household costs such as food, to move the conversation forward and we
clothes and healthcare. look forward to their continued support.

Kaitlin Sampson Murphy,

Sustainable Food Lab for LICOP

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Over the last year, we have focused more on customising

support to match the specific needs of individual farmers, Rubber loyalty programme
designing interventions that help add up to a ‘Living Income’1. in Côte d’Ivoire
Helping farmers to lift themselves out of poverty is critical to
Our Rubber business in Côte d'Ivoire, Olam Agri Rubber
tackling other intractable challenges such as child labour
CI, directly supports farmers through its loyalty programme;
and deforestation.
in recognition of their commitment to quality rubber
Since developing our Living Income Calculator in 2021, production and environmental stewardship, 347 farmers
it has been calibrated to assess living income gaps in were recognised at the GOUASSOU events. The programme
17 supply chains. In 2023, ofi and Olam Agri worked with emphasises sustainable rubber production, providing
the Sustainable Food Lab and the Living Income Community equipment that promotes safe tapping techniques and
of Practice towards making the tool publicly available and minimises harm to trees. We provided essential support,
to foster industry-wide collaboration on improving including equipment for over 2,600 people for safe rubber
smallholders’ income. tapping, and farm management technology - laptops,
smartphones, and a financial grant (US$8,135 - which is
Supporting diversification the equivalent of approx 5,000,000 West African CFA
Helping communities identify alternative sources of income francs) to facilitate better farm supervision, planning
is important to closing the living income gap2. Last year, and record-keeping.
Olam Agri donated 100 beehives to several villages in the To promote financial independence, we also facilitated the
Republic of Congo where we have tropical timber concessions. opening of bank accounts for over 4,600 rubber planters.
While these villages have traditionally harvested honey from
trees where there are wild colonies, we have partnered with
the Association for the Development of the Baaka People of
Congo (ADPBC) to share new techniques, skills and knowledge
with the community. Through this project, the communities
will take full ownership, becoming skilled beekeepers and
benefitting from the honey they produce. These beehives
are crafted using waste wood from our saw mills which
decreases waste as well as supporting economic growth.
Olam Agri has also donated 120 m3 of wood to breeders’
associations for the construction of seven sheep pens and an
enclosure, as part of the Sustainable Wildlife Meat (SWM)
programme, led by the Food and Agriculture Organization
(FAO) in collaboration with the Wildlife Conservation Society
(WCS), a long-standing partner. This new Olam Agri initiative
aims to help rural populations develop sheep farming as an
alternative economic activity to reduce the pressure on wildlife.
Ten sheep pens are planned in total, and an 11-hectare CiB
plot of land has also been made available free of charge to Supporting saving and loans
develop a community grazing project in the village of Kabo. at a local level
The launch of Crown Flour Angels is another of Olam Agri’s In cotton communities in West Africa, Olam Agri
economic empowerment initiatives. Within our wheat milling continued to support livelihood diversification and
business in Nigeria, we have set up a baking academy in resilience through the creation of Village Savings and
Kano to train and economically empower more women in Loans Associations (VSLAs). In 2023, Olam Agri supported
Nigeria. The academy aims to equip women with commercial the creation of a total of 246 VSLAs, enabling group
baking skills to optimise their earnings while contributing to members to save and access finance for income-generating
their communities and the broader economy. It offers a activities or in emergencies. The success of VSLAs has
scaled support framework for women across regions been substantial, enabling women to invest in small
including academy graduates, and the choice of Kano is businesses and farming, and to improve household incomes.
strategic, as the bakery market is growing significantly.
In 2023 the initiative was expanded. In Chad, Olam Agri
At Olam, we believe in the power of education to transform and its partners created 155 VSLAs and trained 3,225
lives. Olam Agri's Annual Scholarship Programme to Support members on VSLA principles, financial management and
Education and Excellence in Vietnam has delivered both income-generating activities. In Togo, 55 VSLAs were set
scholarships and essential rice supplies to support up and 1,375 members were trained, including 481 women,
economically‑disadvantaged students in An Giang province. and in Côte d’Ivoire a further 36 VSLAs were set up.
1. The net annual income required for a household in a particular place Furthermore, Olam Agri expanded its cotton farmer
to afford a decent standard of living for all members of that household.
Elements of a decent standard of living include: food, water, housing,
capacity-building support with Farmer Field Schools
education, healthcare, transportation, clothing, and other essential needs (FFS), setting up 150 in Chad, 213 in Togo and 300 in
including provisions for unexpected events. Source: IDH. Côte d’Ivoire in 2023. Olam Agri field staff were trained
2. A living income gap represents the value that a household would need
to earn on top of their actual income, in order to meet their basic needs.
as Master Trainers on sustainable cotton practices
Source: IDH. and delivered the training through the FFSs to 26,000
farmers during the year.

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Sustainability

A total of 77 students were selected, from elementary to high

school. This programme evidences the Olam Agri team in
Vietnam's commitment and responsibility to the community
by actively engaging in social welfare initiatives which will
also motivate the students to continue their education.
ofi has rolled-out several initiatives in response to growing
inflationary pressures and the cost of living. In the Democratic
Republic of Congo, ofi’s coffee team started growing oyster
mushrooms at several warehouses which employ hundreds of
female workers. With the cost of cultivation materials covered
under the ofi Healthy Living programme, the women received
training on basic production principles, and after the first
harvest were shown how to create complete, nutritious meals
with the mushrooms. The women harvested six kilograms of
mushrooms on average every day for three months, which
they either used for their own consumption or sold at the
local market. There are plans to replicate this initiative to
benefit the workers at ofi’s coffee washing stations.
The increase in the cost of chemical fertiliser and its high
carbon footprint have seen our cocoa team in Côte d’Ivoire
trial different ways to provide organic nutrients to cocoa plants,
considering the impact both on the plant and also on the
labour needed. Initial results are encouraging; applying fresh
cocoa residues directly has the same or even better impact on
Farmer segmentation - success stories yield but requires a much lower effort than composting, with
in Africa a lower carbon footprint. ofi plans further experiments to
validate this and other ways we can simplify farming practices.
Since applying a segmentation model to extension
services in our cashew supply chain in Ghana in 2021, Safe and decent work
over 400 cashew farmers have recorded a 55% yield Many of our supply chains are located in rural areas, with
increase following the adoption of advice from ofi limited or hard-to-access education infrastructure, so the
agronomists on timely pruning and pest management. safeguarding of human rights by actors in the supply chain,
The model, which is also being applied in some of our including governments and regulators, can be a challenge.
coffee supply chains, allows our field teams to tailor Correspondingly, action to improve conditions for farmers
training and support to farmers’ economic and their families is most effective through a holistic
circumstances, farm type and willingness to invest. approach at individual, community and national levels.
Under a pilot project between ofi and the NGO Expert partners supporting us include the International Labor
100WEEKS in Uganda, 94 coffee farmers at the bottom Organisation (ILO), members of the Child Labour Platform,
of the pyramid received weekly cash transfers and and the Child Learning and Educational Facility (CLEF).
training to alleviate debt pressures and incentivise farm We continue our due diligence by assessing human rights
investment. According to the 2023 project survey, 80% risk at country and industry sector level across eight different
of the participating farmers have found an additional themes, using a methodology developed by Wageningen
income-generating activity with 78% saying the University’s Research (WUR). This helps us to identify the
programme has helped increase their income. potential risk hotspots for different topics. For instance, in
16% of national sectors reviewed, the assessment indicated a
very high risk of child or forced labour, so we knew where to
set up rigorous controls and where to prioritise our prevention
efforts - including Child Labour Monitoring and Remediation
I started my chicken farm with the money
Systems (CLMRS) and awareness-raising initiatives. This
from 100WEEKS. I have 30 chickens and sector-level risk methodology is now under further refinement
wanted it to grow up to 100 chickens so and expansion through a Public Private Partnership with
the farm can generate income. Besides, WUR, ofi, Olam Agri and others to help the entire agricultural
sector better understand supply chain risks across
I use the manure from the chickens to sustainability themes.
fertilise my family coffee farm.

Ancessio,
CASH+ programme participant

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Promoting wellbeing and mitigating

child labour in Chad
Following an in-depth risk assessment in 2022, Olam
Agri developed an action plan to address the complex
factors affecting children's wellbeing within Chad's
cotton-farming communities. As part of the plan, we
trained nearly 430 community members, including
village leaders, land chiefs and cotton farmers on
understanding the complexities of family labour
practices and the risks associated with child labour, as
well as the importance of children's wellbeing and how
community-based actions can create positive
alternatives that support their development. We also
identified actions and introduced initiatives, such as
VSLAs and income diversification activities, that can
improve household economic resilience to create better
conditions to ensure children’s wellbeing.

Child Labour Monitoring and Remediation Systems (CLMRS)

have become increasingly valuable in helping us understand ofi initiatives to mitigate child labour
and tailor our interventions. They help us identify children at Turkey’s hazelnut communities
risk of, or in a situation of child labour, so that we can
A lack of childcare facilities in Turkey’s hazelnut
engage with families to improve and enable school attendance
communities can increase the risk of child labour when
through training and facilitation of necessary certificates for
seasonal agricultural workers have to bring their children
example. Drawing on best practices by the Fair Labor
with them onto farms. To help monitor risks during the
Association and the International Cocoa Initiative (ICI),
2023 harvest, ofi’s hazelnut team in Turkey conducted
CLMRS has been scaled up to cover all nine of our direct
unannounced farm inspections and monitored over
cocoa sourcing countries, coffee in Guatemala, cashew in
600 children aged 5 to 17 using our digital CLMRS app.
Nigeria and 100% of our hazelnut sustainability programmes
To support the workers, we continued our long-standing
in Turkey. To date, our CLMRS systems covers over 260,000
summer school programme in partnership with the
farmer households.
Turkish Ministry of Education and local authorities which
With training and the help of smartphones, field officers can was attended by over 570 children during the 2023
collect detailed social data on communities and individual harvest, and we supplied many more children with
farming households, identifying children at risk and tailoring education kits.
interventions based on the issues identified. We also continue
to run deep dive risk assessments in the specific supply
chains flagged as high risk at a sectoral level. This helps us Identifying new opportunities for
understand the wider context and root causes of human child-friendly supply chains together
rights violations, and identify enablers for child protection
and labour rights. One such study was completed in Olam
with Mars
Agri’s cotton supply chain in Côte d’Ivoire. ofi’s cocoa business joined Mars and Save the Children’s
Centre for Utilising Behavioural Insights for Children
The unprecedented visibility provided by CLMRS and our
(CUBIC) to implement a two-year research project aimed
deep dive studies help us focus our resources and collaborate
at developing behavioural interventions that address the
with communities, local authorities, and other stakeholders
root causes of child labour. This innovative project is
to take preventative and remediative actions that help tackle
being carried out in the Man region of Côte d’Ivoire,
the root causes. Effective and sustained remediation takes
identified as an area in need of greater interventions.
time and manpower, and we are committed to testing new
The focus is on identifying tailored solutions to reduce
approaches and adapting our efforts based on evidence of
the number of children in cocoa communities carrying
what works best.
out hazardous tasks by changing attitudes and
encouraging behaviours that promote child protection.
We estimate that the project will reach approximately
20,000 people across ten villages in Man.

Did you know?

Olam Agri and ofi have trained approximately
240,000 people on children’s rights and human
rights globally.

Olam Group Limited Annual Report 2023 105

Sustainability

Improving children’s education together

with Starbucks
In the communities surrounding our certified arabica
estates in Zambia, ofi is working with Starbucks, the Solon
Foundation and the Zambian government to improve
access to education. Informed by community consultations
hosted by our coffee team, two new classroom blocks have
been constructed at a school, with 135 new students and
eight teachers joining in 2023.

I have been a teacher at this school for

six years. I am happy with the project in
that it has brought about a lot of positives
such as increased pupil enrolment. Teachers
are willing to be deployed to this school
now because of the infrastructure, and
now we have good teacher/pupil hours.

Trevor Kapila
Maths Teacher Grades 8 to 12, Kateshi Secondary School

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Diversity and inclusion

We recognise some groups – in particular women, youth, Olam Group achieved the highest rating out of seven
indigenous populations, and people with disabilities or health agri-businesses in the category of Women (as well as
conditions – face a greater risk of discrimination in farming overall) in Oxfam’s third agri-business scorecard
communities and need additional support. Globally, almost ‘Moving the Middle’, published in March 2023.
40% of all farmers are women1, growing both commercial
and food crops. Despite this, many women do not have
access to land rights and face disproportionate challenges As part of the multi-partner Carbon Offsetting Rice Emissions
under the impacts of climate change. In many of our (CORE) project in India, Olam Agri adopted a three-year
sourcing networks, we work to improve women’s access gender action plan for rice farmers in 2023 in partnership
to training and inputs to help them withstand the current with UN Women, GIZ and the International Rice Research
and ever-increasing risk of climate change. We also provide Institute. The actions focus on increasing the participation
literacy classes, health awareness programmes and of women farmers in the project, supporting them to build
professional development initiatives, designed to build entrepreneurial skills, and integrating an overall gender
confidence, motivation and financial autonomy, as well transformative approach into the business model. In 2023,
as supporting sensitisation to help the wider community over 6,000 farmers received participatory training on gender
understand the importance and value of equity. as part of their usual technical training on rice farming, and
We continue to support the World Business Council for we improved our field-level data tool to collect and track
Sustainable Development (WBCSD) Business Commission to gender-disaggregated data. We have also developed
Tackle Inequality (BCTI). As a signatory to the UN Women’s guidelines on where and when to hold training sessions to
Empowerment Principles, we have been promoting gender account for realities such as women’s high unpaid care burden,
equality in our supply chains for many years, to help women childcare and mobility restrictions, to better ensure they can
take control of their finances and receive training on how to participate in trainings and knowledge-sharing sessions.
access credit and open a bank account. ofi’s activities have Krishi Sakhis, also known as ‘women farmers’ friends’, are
seen over 2,000 active VSLAs in place in 2023, as well as the communities of female rice farmers that Olam Agri has
promotion of entrepreneurship models in collaboration with helped support and train since 2020. As part of our
UN Women. Sustainable Rice project, conducted with the International

1. www.fao.org

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Sustainability

Finance Corporation (IFC) and the Government of India’s

National Rural Livelihood Mission, we address challenges that
women farmers face such as gender disparity, low-quality
yields and limited market access. The Krishi Sakhis have
received valuable training and education, and in turn have
helped empower more farmers within their communities.
More than 1,000 women farmers have benefitted from this
programme to-date.
In 2023, we created 75 women-only farmer groups with
925 members and over 250 hectares of cotton farmland in
Chad. This is the first time these women have been
recognised as cotton farmers and received training on good
agricultural practices. Additionally, as part of a sustainability
programme with IDH the Sustainable Trade Initiative, more
than 200 field staff - of which about 10% are women – were
trained on gender sensitivity to equip them with the
awareness and skills to engage women more meaningfully
in the cotton supply chain in Chad.
Further enhancing female farmer livelihoods, through its
partnership in Nigeria with the Kano Dairy & Livestock
Husbandry Cooperative Union (KADALCU), ofi has
established five Milk Collection Centres (MCC), equipped Engaging women’s civil society
with state-of-the-art facilities including a solar-powered
cooling system. Historically, local women have walked many
organisations as knowledge partners
miles to sell their milk in distant markets, so the centres In Turkey, where women make up a significant portion of
provide a direct market for smallholder dairy farmers, as well Turkey's seasonal workforce, ofi works with partners
as helping preserve the quality of milk produced in the region. including the NGO Health Right Association and District
Health Directorates under the Women on the Roads for
In wheat milling, Olam Agri launched an expansion pilot
Hazelnuts project. During the 2023 harvest period, over
of the longstanding Making African Mothers Independent
2,200 women received training on health topics and
Entrepreneurs (MAMIE) programme to train 25 women bakers
basic screening so our teams can determine and inform
in Senegal on literacy, numeracy and fundamental business
the women about their risk of diabetes, anaemia and
skills including pastry making. Every participant received a
iron deficiency, and other possible conditions. For those
kit to help either start their business or increase their production
deemed at risk, the team provided extra training on how
capacity. This initiative will help participants to grow their
to manage their health to avoid further complications.
businesses and develop further skills that will help them provide
for themselves and their families. The goal is to reach 5,000
women bakers by 2030.

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Nutrition and health In November 2023, ofi’s North America spice business
launched a project with the Colorado River Indian Tribe,
As consumer demand for healthier choices continues to gain growers and suppliers of onions for dehydration. To kick off
international momentum, helping producers and urban the project, our corporate chefs hosted a nutrition workshop
consumers in developing countries meet their own health for the elders at the senior centre reservation, focusing on
and nutrition needs is an area of continuous development creating nutritious thanksgiving dishes using spices and
for Olam Group. vegetables grown on the reservation to replace oil and sugar,
The combined expertise of our local sustainability teams as part of efforts to address rates of diabetes and heart
with partners such as Funcafé, TechnoServe, Côte d’Ivoire's disease in the tribal population.
National Nutrition programme, and USAID (United States
Agency for International Development), Global Alliance for
Improved Nutrition (GAIN), CARE and the Tulsi Chanrai
Foundation delivers solutions to improve access to clean ofi’s 2023 Healthy Living Campaign
water, healthcare services and supplies, and nutritious food. ‘Safe Water, Sanitation and Hygiene to live grow and
Initiatives include delivering screening programmes for infant thrive’ was the theme of ofi’s 2023 Healthy Living
malnutrition in farming communities in Côte d'Ivoire - where campaign, under which approximately 335 innovative
one in five children experience stunted growth and new handwashing stations were installed in schools,
development - to fortifying key staples with vitamins and healthcare clinics, hospitals and public spaces across
minerals in our processing facilities. In our dairy communities in Ghana and Tanzania. The water stations
manufacturing facility in the southern state of Johor, use the innovative ‘The Drop’ solution, which requires
Malaysia, we produce dairy products largely destined for the 70% less water than a conventional tap and reduces
Middle East and Africa. Here, we fortify our milk powder with contact with bacteria by 40% which, combined with
vitamins and minerals like Vitamin A, D and E, an important community-based training on the importance of
step because some of the micronutrients in milk can be lost handwashing and sanitation, aim to help improve
during processing. As a staple ingredient enjoyed across the public hygiene.
world, offering value-added dairy products that are full of
nutrients helps to address nutritional deficiencies that are
common in many of the markets where our products are
consumed.

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Sustainability

At Olam Agri, working closely with rural communities in Africa

and Asia gives us the opportunity to improve nutrition and
food security where it is most needed. In 2023, we developed
a progressive plan to meet our target of improving food
security and nutrition for 200,000 farmer households.
Through ground assessments, we found that rural
households in West Africa were particularly at risk of hunger
during certain months. We identified Chad, Togo and certain
regions of Nigeria and Côte d’Ivoire as our top priorities for
improving access to food and enhancing nutrition. Under our
‘Food Secure Futures’ programme, ten businesses are working
to improve nutrition and access to food in farming communities.
For example:
• We continued to build the capacity of women's groups in
cotton-farming communities in Chad which operate solar
food driers that help them to diversify their income and
to access nutritious food. In 2023, we delivered training Infant Malnutrition System Alert (IMSA)
on marketing and food safety to help twelve women’s
groups improve their product and business plans. In 2023, ofi’s Côte d'Ivoire teams screened over 14,000
children using the Infant Malnutrition System Alert (IMSA)
• In Côte d’Ivoire, our cotton business continues to prioritise
smartphone-based application, with over 390 moderate
crop diversification as an important strategy for food
and acute cases identified and referred to healthcare
security. Following awareness-raising and training sessions
facilities. This was achieved in partnership with Côte
on rotational crops with legumes, we supported almost
d’Ivoire’s National Nutrition Programme (PNN). The app
2,000 cotton farmers with soya seeds across nearly
was developed by ofi sustainability analyst Dr Stephanie
3,000 hectares. In addition, 1,500 cotton farmers were
Konan PhD, who was awarded the Prize for Research
provided access to hybrid maize seeds that bring more
and Innovation by Côte d'Ivoire’s Minister of Higher
than 2.5 times greater average yield than traditional seeds.
Education and Scientific Research in December.
• In 2023, we deployed our master training curriculum on
Good Nutrition Practices, developed in partnership with
the Global Alliance for Improvement Nutrition (GAIN),
in Nigeria sesame. All trained field staff will now serve
as facilitators to educate farmers and their families.
In parallel, we carried out research with community focus
groups and retailer interviews in Togo to understand
the enablers and obstacles to good nutrition among
cotton-farming communities. This will inform the
adaptation of the master curriculum for Togo in 2024.
• In the Republic of Congo, where limited infrastructure can
restrict access to food, we helped to move nutritious food
such as fish, meat and vegetables from areas of surplus
to areas with high demand, but limited stocks. This meant
that around 500 families, including those of our employees,
were able to get consistent access to these foods, despite
living and working in very remote areas.
• In Togo, the NSCT ‘Health Caravane’ programme aims
to provide vulnerable communities with healthcare.
The NSCT medical team is composed of three general
practitioners, a gynaecologist and six nurses, and offered
Health support for bakers in Ghana
free consultations and medicines in its health caravan In Ghana, the 'My Healthy Baker’ programme led
to more than 1,850 people in 2023. This is an ongoing by Olam Agri reached more than 1,000 bakers
annual initiative. in collaboration with a local hospital in the vicinity
of the Bakers' Association. Bakers benefitted from
basic health screening while also getting medical tests
and receiving an individual health report. The Ghana
Did you know? Hygiene Standard Management Programme also
13 water pumps were installed by the Olam Agri team launched in 2023, aiming to improve the hygiene
in West Africa to benefit thousands of people in the and sanitation of bakeries in Ghana. 515 bakers are
Abengourou and Korhogo regions in Côte d’Ivoire already being supported to improve their hygiene
and in Chad. conditions. Read more in Olam Agri’s business update
on pages 41 to 58.

110 olamgroup.com
 Strategic report

Economic opportunity: Smallholders in sustainability Diversity and inclusion: Women economically

programmes empowered within our supply chain
(% female farmers)
19%

2,051,000
18%

1,979,570
17%
15%
14%

1,645,000
13%
1,390,000
1,380,000
445,000

941,000
914,800
867,000

825,950
773,000
741,000

2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023

Total farmers
Total hectares

Nutrition and health: Farmers and community members Nutrition and health: Increasing availability
reached with nutrition/food security support of micro-nutrient fortified foods
(servings in billions)
111.8
995,000

957,550

83.5
78.0
70.0

49.4
230,000

44.5
215,650
202,350

449,765

2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023

Olam Group Limited Annual Report 2023 111

Sustainability

People and Culture

We are focused on creating and maintaining a safe and inclusive workplace that supports
diversity and equity, where every individual feels valued and respected.

While our respective operating groups are carving their own This year, ofi continued to embed and explore its Purpose,
paths, they retain key elements of the DNA that has driven ‘be the change for good food and a healthy future’,
Olam to success - an entrepreneurial spirit, integrity, mutual through a unique ‘hearts and minds’ approach. The ‘hearts’
respect and a commitment to sustainability. The safety and aspect of the approach is reflected in the focused efforts
wellbeing of our employees remains paramount, and we by our communications and HR teams to help employees
continue to strengthen our focus on a zero-incident culture understand and connect to our purpose through team
across all of our businesses. engagement activities, workshops, live broadcast events and
content crowd-sourced from employees on our internal social
Additionally, we have implemented several activities on mental
platform, real ofi. Alongside these employee engagement
health and wellness, and we are seeking to improve nutrition
activities, we are embedding our purpose more deeply in
for employees in line with the Workforce Nutrition Alliance.
our product and function strategies as part of our focus on
Culture and work environment ‘minds’. This two-pronged approach means that our purpose
will be interlaced with our strategy and deeply rooted in our
It is vital to cultivate a culture that embraces diversity, company’s DNA. ofi values are: We’re driven, We’re curious,
inclusion and belonging for all employees. We’re open and We care.
We employ over 92,500 people - 58% of whom are secondary
workforce engaged in contract, seasonal and temporary
roles - as well as casual day workers whose numbers fluctuate
throughout the year. This employment structure is typical
of agriculture processing companies because of the cyclical
nature of crop harvesting and varying crop sizes and
volumes per season.
As people are employed by different businesses in the Group,
each operating group continues to work to build its value,
vision and purpose into the working culture. The organisations
are at different stages of their journey, however both ofi and
Olam Agri are embedding their values through engagement
with employees and by reinforcing these in recruitment and
personal development processes.
In April, Olam Agri celebrated one year of launching a refreshed
brand identity, which signalled a new chapter of growth.
We continue to follow this reinvigorated approach to our broad
work culture, and it is a key part of our ambitious journey
to embed our Purpose, culture and values across the group.
Our objective is to raise the level of awareness of these
concepts across the organisation and to bring its newly
established values to life: Entrepreneurial, Agile, Resourceful,
Collaborative and Sustainable.

112 olamgroup.com
 Strategic report

92,500+ 58% of whom are secondary workforce engaged in contract,

seasonal and temporary roles
people employed

Inclusion, Diversity and Equity (IDE) Women’s Alliance Employee Resource

We understand the value of fostering and creating a work Group launches self-care donation
environment where everyone feels welcome, appreciated
and respected. We believe that IDE enhances our innovation, campaign on Self-Care Day
creativity and business performance, so we are dedicated At Olam Agri, the relationships we have forged with our
to making a more inclusive and stronger culture throughout neighbours, community members, customers and partners
our organisation. This is stated in our Fair Employment Policy. continue to make a lasting difference. Hope's Door New
ofi has also rolled out additional policies to lay strong Beginning is a non-profit organisation committed to
foundations for a culture of psychological safety, inclusion providing safety, shelter and support to survivors of
and overall wellbeing - the Inclusion, Diversity and Equity domestic abuse. Seeking to end domestic violence and
(IDE) Policy sets high standards for the creation of a diverse create a future without abuse, it offers transformative
and inclusive workplace, and seeks to root out any form of programmes that empower survivors to rebuild their
discrimination. The Preventing Discrimination and lives. Women's Alliance is an employee resource group
Harassment Policy sets a global benchmark and defines within Olam Agri in the Americas, committed to
the behaviours that Olam does not tolerate anywhere. empowering, developing and supporting the continued
success of women through training, networking and
Examples of specific initiatives in the year include hiring philanthropic opportunities. To celebrate Self-Care Day
protocols, with ofi running workshops for hiring managers, in July, the Women's Alliance Employee Resource Group
talent acquisition teams and HR managers across the four supported Hope's Door New Beginning Centre with a
regions, training more than 150 managers. The programme drive donating essential items such as body wash and
aims to remove bias from every step of the hiring process lotion, bed sheets, toilet paper and cleaning products.
so we can attract a more diverse pool of talent. We also By setting an inspiring example and recognising the
piloted a new initiative to support employees that are moving significance of self-care in nurturing a healthy
cross-geography that focuses on supporting them, their community, we can make a difference in the lives
partners and families to acclimatise to their new country of of those who need it most.
residence - making them feel more included both personally
and professionally.

Olam Group Limited Annual Report 2023 113

Sustainability

ofi’s reverse mentoring programme focuses on building Olam Agri’s Employee Resource Groups
connections and sharing inspiration between different (ERGs)
generations and genders in the workplace. In 2023, we held
ERGs play a crucial role in implementing our IDE strategy
148 reverse mentoring catalyst conversations among 38
as they build awareness and a sense of community at the
leaders and 28 inclusion catalysts.
local level. Olam Agri's largest ERG for women runs across
Olam Agri undertook training to identify and remove 14 countries and has been instrumental in providing
unconscious biases, with our HR and talent acquisition teams employees with a platform to reach out and support each
being fully trained, and workshops are planned to cover the other. Various other ERGs like Young Pro, Move ERG,
entire leadership team. Sustainability ERG, Women's Alliance, EDGE (Empowering
Diversity, Growth, and Equity), Olam Agri Wellness and
We have bolstered our inclusive hiring approach to ensure
Olam Agri Healthy Living cater to different communities
that we have a diverse hiring panel during the selection
and groups of employees.
process. Currently about 30 colleagues globally are actively
trained, and our talent acquisition team has been through
a thorough diversity internal review to ensure we create
internal controls and continually measure progress towards
our goals, which includes widening our use of the assessment
tool that measures cognitive and behavioural assessments.
Further to this, a comprehensive review of our organisational
literature for use of inclusive language and practices has
been undertaken.

Embracing the future with empOWer

A key part of our commitment is to create a stronger,
more inclusive culture that drives innovation, creativity
and better business outcomes. To understand their
perspectives, the challenges faced and the support
needed, Olam Agri conducted a survey that took into
account the voices of 70 female leaders from 14 countries.
The feedback and input has resulted in the formation of
empOWer (the OW stands for Olam Agri Women) which
will focus on five areas:
1. Support on launching ERGs across Europe, Russia,
India and the Middle East.
2. Career advancement opportunities: accelerate women
in management positions, and support career
advancement in partnership with WeQual.
3. Community expansion: establish regular contact with
other regional chapters to exchange ideas and share
best practices.
4. Equitable journey and access: measuring recruitment,
promotion, opportunities for growth and EPS.
5. Support from Corporate Executive: ongoing advocacy,
commitment and support.
With WeQual as founding partners, we seek to support the
women in our talent pipeline at middle management to
progress and thrive and together build a better business
world. This partnership has given us access to 350 global
leaders to help us address common challenges and
development themes.

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 Strategic report

Employee engagement Our promise to our people

We value our people and their passion. To help them achieve We believe that we are nothing without our people. That’s
their best, we involve our colleagues in various initiatives at why - to support our talent acquisition and retention strategy
different levels across the organisation. Our goal is to promote - ofi has developed a new employee value proposition (EVP).
inclusion, diversity, and equity, support good nutrition, Distinct from our external brand, be ofi represents our
health and wellbeing, recognise employee contributions, promise to our people and reflects the authentic experience
and foster leadership and development in the workplace. of what it is like to work at ofi. Employees participated in
polls, focus groups and interviews over a 24-month period so
We continue to run employee engagement surveys to
we could get our EVP just right. In November, we successfully
understand and assess levels of engagement around what
launched it internally to colleagues across the globe - from
we are doing well and what may need more work. Olam Agri
the US to Singapore - and we are working to embed it at
ran a ‘pulse survey’ in May, with more than 75% of employees
every touchpoint across our employee lifecycle.
saying they enjoy working at Olam Agri and recommend our
organisation as a great place to work. Three-quarters also Olam Agri has also developed a new employee value
feel a sense of belonging and believe the organisation truly proposition this year - ‘Freedom to Transform’. It aims to
cares for them and ensures their safety, health and wellbeing. bolster talent retention and acquisition by communicating
We are proud to have won a range of top employer related what Olam Agri offers as an employer to jobseekers and
awards this year. Please see the ‘Global employer of choice’ employees alike.
boxout on page 116 for more details.
An employee value proposition survey was shared with our
Insights to improve employee engagement include: better workforce across varying roles in the organisation to enable
multi-level communications channels and cascade systems, us to gain an authentic sense of how our employees feel
more interest groups which prioritise ‘connection’, reviewing about the workplace and what we offer as an employer.
people practices to mitigate bias, and for senior leaders to Its results, combined with the biennial pulse surveys that
create forums to invite and listen to feedback. are already carried out, created a baseline for the research.
One-to-one interviews and focus groups then took place
These learnings tap into the Group’s wider efforts to improve
to help test and refine our findings.
our collaboration and communication efforts.
Linked back to our Purpose, Freedom to Transform reflects
our activities and echoes how we operate, our management
style, and our entrepreneurial spirit.
Both ofi and Olam Agri will launch their EVPs externally
in 2024.

Olam Group Limited Annual Report 2023 115

Sustainability

81% of Olam Agri employees feel optimistic about the organisation's future

Learning and Development Global employer of choice

Learning and development initiatives are largely led by
In 2023, Olam Group was honoured with the distinction
our business and organisational priorities. They are usually
of being named a Top Employer in 14 countries by the
custom-designed for building leadership capability and making
Top Employers Institute, Great Places to Work and
changes that strengthen our unique culture and values. Success
Kincentric, and also received a maiden award in five
among managers and leaders stems from their ability to
countries (Australia, Cameroon, Senegal, Mozambique
execute our multiple growth initiatives, as we empower them
and India).
to grow their careers across multiple businesses and locations,
maximising their learning and development across different Additional 2023 awards include:
roles and markets. Each time a new business is started, a
• The Kincentric Award for Best Employer 2023 for
new geography is opened, or a new value chain initiative is
Olam Agri in Thailand, commended for its people-first
developed, we are able to deploy a core team of leaders and
approach.
managers capable of spearheading this new opportunity.
Effective integration of new employees has always been • Based on scores across People Strategy, Work
key to ensuring strong team performance. Environment, Talent Acquisition, Learning, Diversity,
Equity and Inclusion and Wellbeing, ofi was certified
One major focus for Olam Agri in 2023 was to re-energise as a Top Employer for 2023 in the UK, Germany,
the learning culture through a much stronger engagement Switzerland and the Netherlands.
campaign with employees. We achieved this through a series • Olam Agri in Brazil received a Great Place to Work
of campaigns such as ‘Reignite Your Learning’ and ‘I Own My (GPTW) ranking as Best Top 50 Companies in
Learning’, and with global online learning sessions. As a result, Agri-business in Brazil. More than 4,000 companies
engagement with self-enrolled digital learning, access to applied and only 60% received this certification, being
digital resources and completion of self-paced courses has recognised as the 12th Best Company among medium-
been much higher than in the last five years. The numbers sized companies (100-999 employees).
indicate a much greater impact, with a 90% cost reduction
• The HR Asia Gold Award was awarded to Olam Agri
per user. Our Digital Learning Hub has also democratised the
in China for the fifth time in a row, which was recognised
learning process by giving direct access to content to those in
as one of the ‘Best Companies to Work For in Asia’
remote locations. It now offers a wider range of content in
by HR Asia, a leading HR publication. Out of the 285
seven languages and in 2023 we onboarded 900 further
companies that were nominated, Olam Agri was among
employees. Strengthening our domain capability has enabled
the 13 outstanding companies recognised as gold
greater access to customised workstreams such as trading,
award winners, which was the highest recognition.
finance and manufacturing and sustainability, among others.
Micro-learning sessions on developing an inclusive mindset
were also held across Olam Agri to help build cultural
intelligence and support our deep commitment to equal
opportunities for growth for all our colleagues.

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Talent management In 2023, as it continues to pivot towards a more solutions-led

The Group’s learning and development strategy is an and customer centric organisation, ofi introduced its
integral part of our talent management strategy as it enables integrated talent management strategy. A series of ofi talent
us to develop all our employees while also accelerating our conferences assessed the succession pipeline for the top 200
the best talent for the future, providing our people with equal roles below the Corporate Leadership Team across the
opportunities to grow their careers. We continually evolve this organisation, with a focus on being fit for purpose and fit for
strategy to ensure it keeps pace with our changing world. the future. Three other focus areas include: accelerating
diverse talent, developing leadership at all levels, and prioritising
Olam Agri offers individual support to employees at their critical talent segments. Our integrated approach to talent
career inflection points, and we have launched a new helps us attract, retain and develop the best talent, providing
programme to support newly promoted employees through our people with equal opportunities to grow and progress
accelerated learning experience and group coaching. in their current roles while also preparing them for future
To support those in the later stages of their careers, we opportunities. In 2023, ofi delivered 94,249 hours of training
partner with various business schools to provide executive with 6,827 unique learners - an average of 13.81 hours of
education to our leaders. Since its inception in 2022, we now training per active learner. Nearly 40% of participants were
have over 100 courses available for enrolment. The classroom women. This was further supplemented with locally relevant
perspective is complemented by individual capsule projects. training delivered by our country and region teams.
Most participants go beyond the course requirements and
present their projects and return on investment to the senior
executive team.
During 2023, Olam Agri delivered 80,148 hours of training with
6,181 unique learners, with an average of 13 hours of training
per active learner. Nearly 19% of participants were women.
2023 saw a 40% increase in unique users and over 100%
increase in gender representation. These figures do not take
into account all of the informal training opportunities delivered.

Olam Group Limited Annual Report 2023 117

Sustainability

Leadership Development
Olam Agri’s approach to leadership development recognises
that people need different types of inputs and support at
different stages of their careers, and individual organisations
need an approach tailored specifically to their requirements.
Our most successful approach involves initiating interventions
early in their careers. In 2023, we welcomed five new Future
Leaders and 17 Graduate Trainees. These individuals - selected
for their individual leadership qualities - are provided with
immersive experiential learning opportunities across our value
chains, in addition to mentoring from our senior executives.
Our flagship programme for leadership development -
the Raising Leaders Programme (RLP) - has been instrumental
in strengthening our leadership capabilities and preparing Olam Agri’s Online Learning Academy
promising talent for senior positions in the future. In 2023 The Olam Agri Learning and Development team ran
we had four concurrent cohorts, involving 70 employees a range of sessions in 2023 to support continuous
from Francophone Africa, Africa, Asia-Pacific and Europe learning and knowledge sharing. Two examples include
and Middle East regions. Topics included aligning purpose, ‘Activate YOUR Growth Mindset!’ and ‘Inclusion through
self-awareness of manager and leader qualities, time and Cultural Intelligence’.
work prioritisation, effective networking, valuing differences For the former, the NeuroLeadership Institute shared
and communicating for impact and team membership. The valuable insights about growth mindset to support
RLP ensures that we build a common leadership language our continuous learning, agility and resilience. Around
while offering a unique perspective to promising employees 344 participants from 22 countries attended these
early in their careers. sessions. For the latter, to foster a more inclusive and
Olam Agri also offers intensive coaching for senior managers, understanding environment, DEI experts from the United
ensuring individual attention and growth by customising Nations and Karen Loon, a renowned author, shared
solutions to meet our employees unique needs. This includes: their knowledge on developing cultural intelligence to
cultivate inclusion. Around 300 participants from more
• Scalable programmes: we roll out programmes at a large than 18 countries attended.
scale, while maintaining the relevance and integrity of
local contexts.
• Digital savvy: we leverage best-in-class digital learning
solutions to enhance both capability and leadership at Performance reviews
multiple levels across our organisation. All our employees are empowered to develop their own
• Omnichannel communications: across our internal careers, supported by their line managers. Our online
workplace, we use multi-layered campaigns to foster system, Aspire, provides a resource for both managers
engagement. Initiatives include email campaigns to and employees to find guidance and to track this process.
ensure direct communication with our employees. We help our employees hold meaningful and authentic
We embed feedback into our process - evaluating providers conversations with their managers throughout the year
based on employee needs and preferences - and we encourage - conversations that are intended to inspire continued
employees to seek feedback as part of their learning experience. growth and increase impact for both individuals and teams.

Total hours of training provided by Olam Agri*

80,148
62,729
26,963

2021 2022 2023

* These figures do not take into account all of the informal training
opportunities delivered

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 Strategic report

Olam Agri is awarded best HSE

(Health, Safety and Environment)
company of the Year in Cameroon
Olam Agri has been recognised as the best HSE company
of the year 2023 in Cameroon by the Corporate Awards,
a pan-African human resource management programme.
The Corporate Awards celebrate companies that promote
change, innovation, role models and excellence in their
respective fields. The HSE award honours companies that
demonstrate excellence in implementing rules and legislation
that address ergonomics and other aspects of workplace
safety through effective occupational and environmental
management practices. Olam Agri was selected after a
rigorous internal research and audit procedure.

Safety and health

We operate in over 60 countries across multiple products
and parts of the value chain. Our activities range from
working with smallholder farmers and their communities in
developing countries, to operating large-scale mechanised
farms and orchards, to trucking logistics in challenging
environments, to manufacturing, to transporting goods to
customers, to working in offices — all with their own risks
and management processes in place. As part of the Group
Re-organisation, each operating group has created an
independent personnel structure, in some cases recruiting
additional manpower to reflect the needs of business operations
and established requisite safety protocols and policies.
Across the Group we categorise our facilities and assets
according to the types and scale of operations on site.
This allows us to assess their needs consistently.
• Tier 1 facilities are large manufacturing plants
• Tier 2 facilities are primary processing plants and
upstream operations
• Tier 3 facilities are warehouses
• Tier 4 are offices.
At Olam Group we have tailored the current Group-wide
‘An Even Safer Olam’ programme to reflect safety priorities
for each operating group, and have continued to utilise the
existing safety management system.
Protecting life by creating a zero-incident culture requires
a commitment from each and every employee. We empower
all employees and contractors to stop work whenever they
recognise an unsafe condition or unsafe behaviour. Through
communications campaigns and awareness sessions, we
remind employees of the importance of taking action against
unsafe acts and the correlation between near misses and
incidents, emphasising that reporting can reduce hazards
and improve working conditions.

Olam Group Limited Annual Report 2023 119

Sustainability

We focus on key areas which support our objective of Despite our best efforts, we could not prevent the loss of 16
embedding a zero-incident culture and create a working precious lives in 2023, compared to 15 fatalities in 2022, with
culture where everyone returns home safely. This includes road safety and vehicle accidents being the main cause.
identifying and managing key safety risks such as driving,
Six fatalities were recorded by Olam Agri, which included an
working at height or working with energy. Colleagues are
incident involving a member of the public. The majority were
actively encouraged and empowered to stop activities at any
vehicle incidents leading to fatal injuries and we have
time if they think they may create a direct risk of causing injury.
intensified our efforts to improve vehicle safety by upgrading
This is communicated through our ‘See it, Say it, Stop it’
all company-owned fleet trucks in Nigeria with telematic
(Olam Agri) and ‘Stop. Think. Protect’ (ofi) communication
camera systems that help reinforce safe driving behaviour by
campaigns.
the drivers. In Nigeria, we have also partnered with industry
In 2023, Olam Agri conducted various initiatives to engage experts to deliver focused improvement by adopting best
and educate employees which included an outreach industry practices.
programme in Nigeria for fleet drivers’ families, offering
Olam Group operations recorded four unfortunate fatal
online training courses (in addition to training campaigns)
incidents across several different operations. This included
to employees. We observed World Safety Day with all
two contractors and two permanent employees. All of these
operations holding events to promote practices of leading
incidents were investigated and reviewed by the leadership
by example, with a focus on learning and up-skilling, and
team using the ICAM methodology of investigation.
taking timely actions.
Six fatalities were recorded for ofi. Three of the six fatalities
ofi's safety programme ‘An Even Safer ofi’ has two key
were related to road safety incidents, two were from
components: providing clear safety guidance for employees
agricultural equipment and one from a fall from height.
in the form of our Life Saving Rules; and embedding a
Equipment updates and modifications have been made as
three-step prevention method - 'Stop. Think. Protect'. In 2023,
well as procedural changes that will mitigate these particular
ofi created a globally accessible e-learning platform that
incidents from re-occurence. For each fatality, ofi conducted
covers around 500 different safety training modules.
a detailed investigation to identify root causes and has taken
This has driven an outstanding level of engagement from
action to address them. ofi has strengthened and expanded
employees which is now directly translating into action.
the use of its Serious Injury and Fatality Prevention Reviews
A total of 5745 ‘stop work’ actions were performed by ofi
for our locations globally, which includes a self-assessment
employees in 2023, rising from 42 actions recorded in the
to prioritise our resources and activities. We hold leadership-
month of January 2023 to 833 recorded in December 2023.
driven safety updates and training on a quarterly basis.
Overall safety performance Olam Agri has a similar process where our group safety
At Olam Agri, the LTIFR reduced significantly by over 45%. committee, comprising the top leaders of the organisation,
For ofi the LTIFR reduced by 15%. These improvements were meet on a quarterly basis to review and investigate safety
a result of the continued focus on building safer safety performance and incidents. We believe that the leadership
cultures, reminding the teams to lead by example, keep team has an important role to play in transforming the
learning and taking timely action. safety culture and we conduct regular training by external
industry experts to align them on the safety goals and
The total number of operations that had ‘zero’ lost time
leadership role in safety performance.
incidents at OIam Agri, ofi and Olam Group are below:
In 2023, a particular focus area for preventing incidents was
Fatalities and LITFR in 2023 > Olam Group on driving as a leading cause of safety incidents. In Zambia,
Africa Americas Asia Europe Total Tanzania and Uganda, ofi has telematic monitoring systems
Pacific on vehicles. In Zambia, we have conducted defensive driving
Fatalities in 2023 11 3 0 2 16 training for drivers across the estates, to improve driving skills
and reduce road traffic accidents. Similarly, in Australia, we
LTIFR in 2023 0.15 0.58 0.11 0.52 0.21 have fitted vehicle safety trackers which monitor excessive
speed and driver fatigue, as well as front and rear dashcams,
Fatalities and LTIFR in 2023 > Tier 1 Facilities to our entire light vehicle fleet.

Africa Americas Asia Europe Total We are also focusing on health-related issues. After ofi
Pacific employees saved the life of a colleague using an Automatic
Fatalities in 2023 2 0 0 0 2 External Defibrillator (AED) at our facility in Koog in the
Netherlands, we are now installing this life-saving equipment
LTIFR in 2023 0.05 0.68 0.05 0.99 0.18 across Tier 1 facilities and delivering the training needed for
people to use it. Our goal is to have AED and professionally
trained First Aid Teams in all of our facilities by the middle
of 2024.

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Number of facilities across the Group

(excluding Tier 4/offices)
ofi Remaining Olam Group Olam Agri

Tier 1 Tier 2 Tier 3 Tier 1 Tier 2 Tier 3 Tier 1 Tier 2 Tier 3

Africa 3 13 13 15 7 17 20 27 55
Americas 21 39 52 0 0 0 0 4 3
Asia 14 48 36 1 2 0 0 13 1
Pacific
Europe 11 5 1 0 10 0 0 2 0
Total 49 105 102 16 19 17 20 46 59

Employee and labour rights Olam Palm Gabon: 2023 safety

We depend on the engagement, motivation and safety of our overview
workforce to create responsible growth. Equally, we engage
Olam Palm Gabon (OPG) has embarked on a
with suppliers on how to protect and respect human rights
transformational journey regarding safety at work, as
across the supply chain. We are guided by the United Nations
the skills, habits and mindset around safety were not
Declaration of Human Rights, the ILO Declaration on
meeting expectations or international good practices.
Fundamental Principles and Rights at Work, and related
Beyond investing in training and sensitisation, the team
international covenants.
deployed dedicated resources to build up a strong safety
Through our Fair Employment Policy, we have set out culture. For example, on road safety - which was the
a clear approach to providing a workplace where the rights most accident-prone sector - the team performed regular
of all our employees are respected. The Policy reaffirms our speed controls and alcohol tests throughout last year.
commitment to adhere to national laws and to fully comply As a result, the Lost Time Incident Frequency Rate (LTIFR)
with the conventions of the International Labour Organization in Olam Gabon plantations went from 16 at the end of
(ILO) and United Nations Global Compact’s (UNGC) guiding 2019 to 0.37 in 2023. We reduced Lost Time Accidents
principles on human rights and labour, to protect employee by 43% compared to the previous year, and our Lost
rights and provide a non-discriminatory workplace where Time Injury Frequency Rate by a substantial 60%.
diversity is valued. It covers key areas such as the prohibition
of child and forced labour, workplace conditions, wages
and benefits, diversity and inclusion, workplace health
and nutrition, freedom of association and right to collective Labour and management relations
bargaining. All our operational sites are required to meet Given our investments in our upstream farming and
and implement Level One of our Policy. Our approach plantation operations, we have an extensive workforce
enables our operational sites to meet Policy requirements, tending and harvesting crops. There are 85 large
while implementing further actions as they move through manufacturing and processing plants with a workforce that
a maturity process. The implementation of our polices in our includes machine operators, lab technicians, supervisors,
owned operations is assessed by our Internal Audit team, engineers and logistics operators. As outlined in our Fair
following a risk-based approach. Employment Policy, we commit to the following labour practices
We can also provide data to customers on our workforce via across our supply chains: compliance with relevant labour
our sustainability management system AtSource. Indicators national laws and international agreements (including wages,
for estates and orchards on the platform can include the working hours and conditions, freedom of association, collective
number of female employees and female managers, percentage bargaining, no discrimination, gender, and age equality);
of employees trained on labour rights and practices, a grievance mechanism accessible to all workers without
percentage of households reporting sufficient food supply retribution; and an accessible communication framework
year-round, and number of employees occupying a position of policies to the workforce. These requirements apply to
that can carry hazard risk. contracted, seasonal and migrant workers where relevant.
During the reporting process for 2023, 333 grievances were
filed. 289 cases were resolved. 64 cases were carried over
from 2022. As a result of audits and inspections, we identified
three human rights related cases.

Olam Group Limited Annual Report 2023 121

Sustainability

Percentage of employees covered Speaking out

by collective bargaining
We strive to uphold high standards of behaviour and
compliance. ofi and Olam Agri rolled out an updated Code
of Conduct for their respective employees in 2023, and
collectively agree we have a commitment to ‘do what is
right’, founded on the values and everyday behaviours
47% 39,000 that build our distinctive culture, set the standards for what
it means to be part of Olam Group, and enable everyone
to speak out.
All employees across ofi, Olam Agri and the remaining Olam
Group have access to training on the Code of Conduct.
Total primary workforce Across the Group we have a grievance mechanism and
Size of primary workforce covered whistleblowing platform which embeds vital key principles of
by collective bargaining agreements (%)
anonymity, guaranteed absence of retaliation and independent
investigation of issues raised. In 2023, ofi extended this
further with multiple ways to report, one-touch dialling from
all countries, and support for more than 15 languages,
covering all languages in all countries with an ofi presence.

Living Wage
Paying living wages is an important way that companies can
contribute to economies that support decent livelihoods and
inclusive growth. While this is a significant undertaking for any
global company, a proper understanding of the actual costs
and possible gaps is the first step in identifying the pathway
towards living wages for all. Following Olam’s living wage
gap baselining activity in 2022 in partnership with Social
Accountability International and the Anker Research Institute,
we will undertake further detailed analysis of the baseline
and continue to progress our internal roadmap to help close
these gaps.

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 Strategic report

Health and Wellbeing

According to Chatham House (2020), malnutrition among
employees in low and middle-income countries costs businesses
an estimated US$130 to US$850 billion each year due to
productivity loss. With many members of their workforce
living and working in countries with a high malnutrition
prevalence, both ofi and Olam Agri continue to partner with
the Workforce Nutrition Alliance, aligning their approach to the
four pillars of a healthy, game-changing workforce nutrition
programme comprising:
• Healthy food at work
• Nutrition education
• Nutrition-focused health checks
• Breastfeeding support.
Supporting new mothers to return
to work
We believe that these pillars of healthy nutrition are essential
to drive inclusive, productive and sustainable economies, and To encourage and support new mothers to return to work
achievement of the UN Sustainable Development Goals. For at ofi’s cashew processing factory in Côte d’Ivoire, they
this reason, whether our company works across developed were given access to one of the first day-care centres
or developing countries, we will prioritise the most vulnerable certified by the Côte d’Ivoire Women, Family and Children
of our employees and ensure that women are a key beneficiary Ministry. 150 children from three months to seven years
of our enhanced workforce nutrition programme. By the were registered by the end of last year. The centre also
end of 2023, we had assessed more than 250 sites for our provides a dedicated breastfeeding area, following
primary workforce across ofi and Olam Agri. the example set by our workplace lactation programme
in Vietnam in partnership with NGO Alive & Thrive.
Of those assessed, 28% had access to subsidised or free
meals and 75% had access to nutrition-focused health
check-ups. For example, the ofi Nigeria cashew team ran
nutrition-related health checks for 950 employees, reviewing
indicators such as cholesterol and blood sugar, while in Access to clean drinking water
Indonesia the ofi cocoa plantation team ensured access to in Satikran, Côte d’Ivoire
lactation rooms for more than 400 employees. In our wood
To mark World Water Day, Olam Agri's rubber business
business in the Republic of Congo, more than 1,700 people
in Côte d'Ivoire - Olam Agri Rubber CI - donated a solar
from the workforce and surrounding communities were trained
water pump to the small village of Satikran, bringing
on the importance of a diverse diet, complementary foods
access to clean drinking water to more than 12,000
for young children, as well as food safety and hygiene.
people. The donation is part of the Nassey programme,
Olam Agri offered free cervical screening tests for female which means 'thank you' in the local dialect, and aims
employees to mark this year’s Cervical Cancer Awareness to show our appreciation and commitment to social
Month. As part of its commitment to promoting health and development for rural communities. The solar-powered
wellness among its employees, Olam Agri is offering screening water pump will provide the community with safe and
and testing, and a week’s programme of information sharing clean drinking water, something they have long
and education on cervical cancer and its impact on female struggled to access.
reproductive health. The programme includes expert
presentations on topics related to cervical cancer, its
treatment and prevention.
In Ghana, to support our female employees, we marked
International Women’s Day with the installation of new
lactation pods across our business locations. As part of Olam
Agri’s goal to ensure all employees have access to nutrition
programmes by 2030, the initiative in collaboration with our
women’s network is creating self-contained, clean and
comfortable units for working mothers to express milk for
their babies while they are at work. The launch of the pods
was accompanied by an interactive health forum. In our
rubber factory in Côte d’Ivoire, we organised two breastfeeding
campaigns - in partnership with the National Nutrition
Programme experts - and the factory also proudly
inaugurated its breastfeeding room on site at Aniassué.

Olam Group Limited Annual Report 2023 123

Response to TCFD

Response to the Task Force on Climate-

related Financial Disclosures (TCFD)
As a leading agri-business committed to ensuring transparency and action around climate-related risks and opportunities, we
support the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).
The identification, assessment and management of climate-related risks and opportunities are periodically reviewed and
improved upon.

TCFD Summary of Olam’s response Additional

recommended information
disclosure
Governance
Describe the Board’s • The Corporate Responsibility and Sustainability Committee (CRSC) Read more on
oversight of is mandated to support the Board in monitoring and managing pages 187 to 188
climate-related risks environmental, social and governance-related risks. The terms of reference within the
and opportunities. of CRSC include providing guidance to the Executive Management and Governance section
recommendations to the Board across environmental, social and governance of this report.
topics, including climate change.
• Climate-related risks are integrated into Olam’s Integrated Risk and
Assurance Framework (IRAF) process. Findings from the IRAF process are
reviewed quarterly by the CRSC, Board Risk Committee and Audit Committee.
• Since 2022, all members of the Board have completed mandatory training
on climate-related matters.
Describe • The CRSC actively engages with the Corporate Responsibility and Read more on
Management’s role Sustainability (CR&S) function in the formulation and implementation of pages pages 129
in assessing and policies and initiatives for climate risk mitigation and resilience. To inform to 132, and pages
managing climate- this process, the CR&S function actively assesses climate-related risks on 187 to 188 within the
related risks and an operational level such as by monitoring deforestation and water stress in Governance section
supply chains. Along with business units, CR&S also explores opportunities
opportunities. of this report.
through climate-smart products.
• On a company-wide strategic level, a dedicated team in the Finance
function is responsible for identifying, measuring, assessing, monitoring and
reporting the potential financial impacts of climate and nature-related risks
and opportunities. The team also uses multi-capital valuation to estimate
the economic value of impacts to and dependencies on nature and
communities to inform business decisions.
Strategy
Describe the • Olam has identified and assessed key physical and transition climate- Read more on
climate-related risks related risks and their potential impacts on the businesses. pages 126 to 128
and opportunities • We have identified climate-related opportunities. of this report.
identified over the
short-, medium-
and long-term.
Describe the impact • Physical and transition risks have been qualitatively assessed in the current year. Read more on
of climate-related • Our climate disclosures will progressively cover the potential financial pages 126 to 128
risks and impacts of climate-related risks and opportunities on our businesses. of this report.
opportunities on • Olam’s responses to mitigating and adapting to climate change are a
our businesses, growing consideration in its strategic business decision-making processes.
• Olam conducts holistic ESG risks and opportunities assessments for new
strategy, and
CapEx proposals, including climate risks and opportunities in order to incorporate
financial planning. potential impacts of these into the investment decision-making process.
Describe the resilience • Having assessed where the risks and opportunities lie, Olam is reviewing its Read more on
of our strategy, strategy to build resilience against climate-related risks, identify climate pages 126 to 128
taking into adaptation measures, and to capitalise on the opportunities identified. and within the
consideration • Our principle for adaptation and resilience is to advance and scale up existing Environment section
different climate- efforts for wider impact within our own business, integrating both climate of this report from
adaptation and decarbonisation into our commercial strategies, while
related scenarios, page 92.
collaborating across the industry to address systemic and governance issues.
including a 2°C or
lower scenario.

124 olamgroup.com
 Strategic report

TCFD Summary of Olam’s response Additional

recommended information
disclosure

Risk Management
Describe the • Olam has commenced a process of assessing climate-related physical Read more on
processes for and transition risks and opportunities using ‘Business as Usual’ and pages 126 to 128
identifying and ‘1.5°C’ scenarios. and pages 129
assessing climate- • Changes in the climate-related regulatory landscape are monitored to 132.
related risks. on an ongoing basis by the relevant teams.

Describe the • Olam reviews its climate-related risks and opportunities on an ongoing
processes for basis to assess their continued relevance to the businesses, as well as the
managing climate- impact achieved through the targeted strategies.
related risks. • As appropriate, the risks and opportunities are updated, and the associated
strategies are amended to address an evolving climate landscape.
• The inclusion of climate-related risks in Olam’s IRAF was done to ensure
accountability across businesses and as a mechanism to assist the Board
and Board Committees in their review of risks and controls.
• The Internal Audit (IA) team drives a quarterly process where the
effectiveness of control measures across business operations is reviewed by
business unit teams, functional Heads and the IA team. The control
assessments are then presented to the CRSC, Board Risk Committee and
Audit Committee.
Describe how • To institutionalise climate risk management, climate risks have been Read more on
processes for integrated into the IRAF process. pages 129 to 132
identifying, • As the climate-related risk assessment evolves, the identified risks and within the risk
assessing, and controls integrated into the IRAF process will be enhanced concurrently. management
managing climate- section of this
related risk are report.
integrated into
overall risk
management.
Metrics and Targets
Disclose the metrics • Olam’s key environmental and GHG metrics are identified, measured and Read more in the
used to assess reported. Additional
climate-related risks Sustainability
and opportunities in Information report,
line with the and within the
strategy and risk Environment section
management of this report from
process. page 92.

Disclose Scope 1, 2 • Olam reports its Scope 1, 2 and 3 GHG emissions. Reported metrics follow Read more in the
and 3 GHG GHG Protocol Guidance. Additional
emissions and Sustainability
the related risks. Information report,
and within the
Environment section
of this report from
page 92.
Describe the targets • Olam is a signatory of the SBTi with approved targets (<2°C) since 2019 Read more in the
used to manage to reach net-zero by 2050, and also supports the Agriculture Sector Additional
climate-related risks Roadmap to 1.5°C. Sustainability
and opportunities • At COP27, Olam, along with 12 global agricultural trading and processing Information report,
and performance organisations, published a shared roadmap for enhanced supply chain and within the
against targets. action to halt commodity-linked deforestation consistent with a 1.5°C Environment section
pathway. The commodities represented by Olam were palm, soy of this report from
and cocoa. page 92.

Olam Group Limited Annual Report 2023 125

Response to TCFD

Climate change strategy and risk Transition risks

Policy and legal
management
• Increased carbon pricing or taxes which may be directly
Olam has dedicated significant resources to understanding levied on the emission-generating assets or passed to
the climate change impact on its businesses. Using climate Olam through increased cost of utilities and raw materials.
scenarios informed by the Intergovernmental Panel on
• Increased costs due to other relevant regulations such as
Climate Change (IPCC) and Network for Greening the
the European Union Regulation on Deforestation-free
Financial System (NGFS), Olam has selected two scenarios
products (EUDR).
to assess climate risk - a ‘Business as Usual’ scenario
indicating a future where minimal-to-no action is taken to Technology
combat climate change and a ‘1.5°C scenario’ indicating • Significant shifts in capital investments and costs to
that global warming is kept below 1.5°C by 2100. transition to new and alternative low-carbon and carbon
Using these scenarios, Olam conducted an in-depth climate storage technologies and practices such as biomass
risk and opportunity assessment in alignment with the TCFD boilers, solar panels, nature-based solutions or the
recommendations. The outputs from these assessments are alternate wetting drying technique for rice farming.
being used to inform investment decisions and business • Costs to adopt/deploy new practices and processes.
strategies that span the short-, medium-, and long-term time
Market
horizons.
• Shifts in consumer preferences towards more sustainably
Following last year’s progress, we are continuing to assess sourced and produced products.
our physical climate change risks across the businesses to • Shifts in land prices and rentals could potentially impact
evaluate the climate hazards faced by large processing Olam’s own farms and suppliers.
facilities and upstream assets globally. Extreme weather
conditions such as floods and droughts as well as chronic Reputation
climatic changes such as precipitation patterns and extreme • Increased stakeholder concern if a company is perceived
temperatures are some of the hazards which could not to be living up to societal expectations on climate action.
potentially disrupt our operations and are explored within
this assessment. Building climate resilience and leveraging
opportunities
To analyse the potential financial impacts of physical climate
risks, we are adopting a phased approach within our risk The challenges of climate change facing our planet require
management framework. This approach begins with collaborative and immediate actions. We work with partners
qualitatively assessing the various climate-related risks that to help protect our environments, decarbonise our
could have a potential adverse effect on operations, assets, operations, and build climate-resilient supply chains.
and supply chains. Having understood the various climate With our customers and other partners, we have continued
risks that could impact the organisation, Olam is to make progress over the year on addressing our climate
progressively assessing the potential quantitative impact of impacts and protecting ecosystems and biodiversity,
each risk while continuing to implement appropriate enhancing water stewardship, reducing food loss and waste,
mitigation and adaptation mechanisms. and regenerating soils.
Olam’s transition risk analysis related to market, reputation, Olam’s carbon emissions are quantified and tracked using
policy and technology is being refined to understand Olam’s self-funded platforms AtSource1 and Terrascope2, and are
agility and resilience in transitioning to a lower carbon model aligned to accepted frameworks and methodologies
and creating new growth opportunities. including the Greenhouse Gas Protocol and IPCC Guidelines
for National Greenhouse Gas Inventories.
Potential climate-related risks and impacts
Physical risks In Olam’s plantations, concessions and farms as well as
• Increased frequency and severity of extreme weather direct supply chains, we work to reduce emissions associated
events (e.g. floods, wildfires) and chronic shifts in climate with farming practices and support climate resilience. Our
patterns (e.g. rising mean temperatures, change in approach is focused around four areas:
precipitation patterns) may impact crop volume and • Adapt to climate change by improving farming practices
quality as well as the operations at our processing and access to technology such as irrigation equipment
facilities. For example, water scarcity due to lower or and higher-yielding, climate-resilient seed varieties.
change in rainfall duration may impact crop quality and
operational costs e.g. irrigation. • All interventions at the farm level have a livelihood
• Failure of farmers to adapt and build resilience to climate component that allows farmers to change their
change may exacerbate the poverty cycle and future behaviour toward good agricultural practices and its
ability to grow required volumes for Olam and a growing potential to improve yield, resilience and living
population. conditions. Olam has partnered with numerous
customers and independent organisations to
disseminate agricultural and climate mitigation
manuals that are being used to train farmers and staff

1. AtSource enables Olam’s customers to track their sustainability metrics including supply chain carbon footprint. For more information, visit Atsource.io
2. Terrascope is a corporate carbon footprinting platform. For more information visit Terrascope.com

126 olamgroup.com
 Strategic report

on field practices (e.g. fertiliser reduction, soil • Agro-forestry, conservation and reforestation. Various
improvement, pesticide management, agroforestry businesses have invested in increasing tree cover
implementation). All these activities are being captured on and around farms and in farming landscapes,
and monitored at a national level. including shade tree planting and agro-forestry
• Management of on-farm water use efficiency for at risk in cocoa and coffee, as well as natural ecosystem
locations (e.g. California almond, alternate wetting conservation/reforestation efforts including in edible
and drying technique in rice farms in India). oils, cocoa, coffee, spices and wood product businesses.
• In Nigeria, as part of our Seeds of the Future programme, Agro-forestry builds farmers’ resilience against climate
we supported the development of drought and change through crop diversification. Diversity of traditional
heat-resistant wheat seeds to contribute to the country’s crop varieties in a production system can play a key
goal of achieving self-sufficiency in food production. role, enabling a farmer’s crop population to better
evolve and adapt to changing environmental conditions.
• Build resilience against the impact of climate change To date, we have distributed more than four million
by promoting crop diversification and other opportunities non-commodity trees across farmer cooperatives
such as beekeeping, strengthening local farmer cooperatives, and Olam’s own supply chain. This excludes the
and improving access to savings and loans facilities and delivery of improved, climate-resilient tree varieties
crop insurance. distributed to aid adaptation.
• Regenerate soils and ecosystems through nature-related • These efforts help carbon removal from the atmosphere
solutions which help address physical and transition risks and may support ecosystem services including
through the multiple services provided by ecosystems in pollination services, soil health and water retention,
terms of climate adaptation (e.g. water management, and pest management.
adaptation to disaster risks, support to livelihoods resilience) • Olam Agri and ofi have both signed up to be early
and climate mitigation (carbon storage). Initiatives include: adopters of the TNFD framework.
• Regenerative agriculture practices such as crop
• Reduce emissions through the following:
rotation, composting, mulching, soil erosion control,
integrated soil fertility management and integrated • Working with our suppliers to identify opportunities
pest management (e.g. rice and cotton). In 2023, Olam to utilise climate-smart agriculture practices,
successfully facilitated the certification of the farmlands above mentioned nature-based solutions as well as
in its supply chains using regenerative agriculture technologies to reduce emissions while increasing crop
practices. In Côte d’Ivoire, Olam has achieved regenagri® yields in businesses such as dairy, cocoa, coffee, rice
certification for 100% of its directly-sourced cotton. A and cotton. For example, for the rice business in India,
total of more than 250,000 hectares of land, 20,000 Olam launched the Carbon Offsetting Rice Emissions
farm enterprises and both of Olam’s ginning facilities (CORE) project implemented by the Fund for the
that process about 100,000 metric tonnes (MT) of seed Promotion of Innovation in Agriculture (i4Ag), as part of
cotton annually in the country have been regenagri® the Special Initiative Transformation of Agricultural and
certified. Since 2014, all of Olam’s cotton sourced from Food Systems. Under this project, Olam partnered with
Côte d’Ivoire has also been Cotton made in Africa GIZ, IRRI (International Rice Research Institute), and
(CmiA) certified. In the US, Olam has received regenagri® the UN Entity for Gender Equality and the Empowerment
certification covering 15,000 hectares of farmland in its of Women (UN Women). In this programme, Olam is
supply chains and three ginning facilities producing training nearly 20,000 smallholder farmers in the use
about 20,000 MT of cotton annually. Read more on of technologies and practices to reduce carbon emissions,
pages 99 to 100 of the Environment section of this report. approximating 90,000 metric tonnes of CO2 equivalents,
• Olam is committed to sustainable and responsible and nearly 2,500 female smallholders strengthened as
forestry while contributing to the development of the leaders and entrepreneurs. Read more on pages 94,
economy and enhancing living conditions for people 107 of the Environment and Social section of this report.
living in and around our concessions. In the harvestable • Reducing post-harvest loss from improper processing,
areas of the forest concessions in the Republic of drying and storage.
Congo managed by Olam, we’re committed to strictly • To enable successful deployment of nature-based
apply Reduced Impact Logging (RIL) techniques and solutions recommended to our farmers, Olam constantly
harvest at levels significantly below those permitted reviews progress through satellite monitoring and
by national regulations. This approach is based on on-ground site visits. Investment in these monitoring
a selective harvesting model defined by the natural efforts and technologies enables Olam to effectively
regeneration capacity of the forest. This means that implement its climate mitigation strategies.
we cut approximately one tree per hectare every 30
to 35 years which results inreduced timber extraction
volumes (lower than that approved by the government
under the forest management plan and comparable to
natural windfalls). Olam is a pioneer in RIL initiatives in
the region. Read more on page 95 of the Environment
section of this report.

Olam Group Limited Annual Report 2023 127

Response to TCFD

• Improved traceability and granular approach to land agriculture and forestry sectors. We extended our partnerships
use change including farm polygon mapping (across with institutions that play an important role in creating a
multiple businesses), tailored deforestation alerts and sustainable future. Some of these partnerships include:
remote sensing for estimating GHG emissions from
• Research agencies, such as for seed and technology
land use change. Olam is well-positioned to comply
development and testing.
with policies such as the EU Regulation on
Deforestation-free products, especially given its • Governments, for alignment with local priorities,
long-term focus on reducing deforestation in programmes and regulations.
smallholder supply chains and advancing sustainability • International development agencies, who can bring
programmes. Refer to the Environmental section of this financial and technical assistance.
report for further details. • Financial institutions, both large and small, to help finance
• For our customers, knowing where carbon emissions the climate transition.
are coming from in their supply chains is critical to • Insurance agencies for crop insurance for resilience.
understanding how to reduce them cost-effectively. • Certification and standard setters, both for sustainability
Throughout the year, Olam has invested extensively certifications and for carbon project development.
in our Carbon Scenario Planner, a tool that allows us
Olam is leveraging opportunities as follows:
to model the outcome of different decarbonisation
interventions tailored to local contexts, and offer our • Development of products and services for the low-carbon
customers cost-efficient interventions in emissions economy, such as:
reduction programmes which also benefit farmer
• Individual product sustainability strategies such as
livelihoods.
Cocoa Compass, Coffee LENS, Cashew/Hazel/Almond
Our climate mitigation and adaptation strategy for Trails, Dairy Tracks, Sustainable Rice Platform, FSC®
processing assets includes: (wood products), RSPO (palm oil) and regenagri™ (cotton).
• Developing a decarbonisation strategy and assessing • Traceability/sustainability management platforms
carbon abatement technologies and approaches for including AtSource and Terrascope.
our processing assets, including renewable energy • Farmer engagement platforms including Digital Direct1
and energy efficiencies. and Jiva2.
• Recycling of biomass waste as fuel at processing facilities • Gaining access to new and emerging markets.
(including wood products, rice, animal feed and protein,
cocoa, coffee, nuts, spices and edible oils businesses), • Market developments, which could be influenced by
thereby improving resource efficiency and energy security. regulations such as the European Union Regulation
on Deforestation-free products (EUDR), are constantly
• Engaging with a consultant to strengthen our climate
monitored. Read more details on pages 95 to 96 within
adaptation strategies against the key hazards, which
the Environmental section of this report.
would involve enhancing business continuity plans,
erecting structures or processes that are more resilient • Monitor local market developments in alternative
to physical risks, etc. protein and dairy products (including nut-based milks).
Plant-based products and the increasing demand for
• Through holistic ESG risks and opportunities assessments
affordable nutrition in developing countries presents
for new CapEx proposals as described in the Strategy
the opportunity to create new products and markets
section of the table on page 124, Olam strives to incorporate
across the dairy and nuts product platforms.
potential financial impact from ESG risks and opportunities
into the investment decision-making process. • Improving access to capital, possibly reducing cost
of capital, and forming partnerships with Development
Across our operations, we apply top standards
Finance Institutions and other relevant partners.
for sustainability governance and norms:
• Implementation of policies including Olam Living Looking forward
Landscapes Policy, Olam Plantations, Concessions • Olam continues to engage with farmers and other
and Farms Code, Olam Supplier Code. supply chain partners to map out and deploy
• Proactive support for communities under AtSource+ and decarbonisation and nature-based solutions to address
AtSource∞, sustainable and responsible procurement our climate-related impacts, dependencies, risks and
under a wide variety of voluntary certification schemes opportunities, recognising that the majority of our
for sustainable agriculture and resource production emissions occur at farm level. Our on-ground efforts
(including Rainforest Alliance, FairTrade, Organic, RSPO will continue to further inform our climate mitigation
and FSC®), and participation in alliances and adaptation strategies.
such as the Sustainable Rice Platform and World • For further highlights on the progress towards Olam’s
Cocoa Foundation. net-zero ambition, refer to the Environmental section of
this report (pages 92 to 101). We will continue to enhance
We recognise the importance of enhancing collaboration
our disclosures as we progress in our climate agenda
within the ecosystem of actors to enable decarbonisation
and strive to meet our climate-related commitments.
and climate adaptation throughout value chains within the

1. Digital Direct is a smartphone app developed in-house that enables farmers to actuate sales contracts directly online.
2. Jiva is a farmer services app, offering solutions such as digital loans, farm supplies, agronomic advice and access to market. For more information, visit Jiva.ag

128 olamgroup.com
 Strategic report

Principal risks and uncertainties

Olam’s Risk Office monitors and controls The Risk Office monitors and controls trading risks, credit
risk, counterparty risk and transactional currency risk.
the key risks (trading risks such as price Value-at-Risk (VaR) is measured for trading risks and
and basis risk, credit risk, counterparty risk transactional currency risk. The Risk Office is organised into
and transactional currency risk) across two teams, each headed by a Chief Risk Officer - one in
charge of risk monitoring and control for ofi; and the other
the businesses. in charge of risk monitoring and control for Olam Agri and
the Remaining Olam Group.
The Group tracks various risks across 11 main categories.
Each of the risks is monitored by a specific function, The table on the following page provides an overview of how
overseen by a specific Board Committee, and assessed the Group mitigates each risk and whether it has stayed
on the likelihood of occurrence and potential impact stable, increased or decreased over the year.
on three-point scales (high/medium/low).
The Internal Audit function collates inputs from the relevant
functions every quarter for presentation to and discussion
by the Board, the Board Audit Committee and the Board Risk
Committee. The risk assessments assist the Board with
identifying the main risks and their associated processes,
systems and mitigation plans.

Five Board Committees oversee risk management

Nomination
Risk
and Remuneration
Committee
Committee
Read more on
Read more on
page 176.
page 170.

The Board
Read more on
page 156.
Corporate
Responsibility Audit
and Sustainability Committee
Committee Read more on
Read more on page 178.
page 187.

Capital and
Investment
Committee
Read more on
page 185.

Olam Group Limited Annual Report 2023 129

Risk management

Risk overview and ownership matrix

Risk type Ownership Mitigation Developments in 2023 Risk

and sub-risks Status
Trading Risks Risk Committee The Board sets Group-level risk envelopes Agri-commodity prices stabilised overall as the Decreased
• Price Risk (including market risk VaR) as part of the impacts from the supply chain disruptions of
• Basis Risk annual risk budgeting exercise. The Risk Office the previous year receded. However, rice
• Structure Risk allocates risk limits across businesses and prices rallied as India banned white rice
tracks exposures for adherence to set limits. exports and cocoa prices rose strongly on
• Arbitrage Risk
The Group hedges price risk on various futures prospects of another supply deficit. Food and
• Liquidity Risk
exchanges across the world. feed demand remained robust, but sluggish
apparel sales and high inventories impacted
cotton sales and basis levels.
Operational Risk Committee The Board sets Group-level risk envelopes Contract performance risks abated overall as Decreased
Risks • Credit Risk (including nominal credit and counterparty prices stabilised. However, supplier
risk limits) as part of the annual risk budgeting performance risk on rice and cocoa contracts
• Counterparty Risk
exercise. The Risk Office allocates limits across rose on higher prices.
businesses and on individual parties, set in
accordance with defined approval hierarchies.
The Risk Office tracks exposures. Credit
insurance, bank guarantees, post-dated
cheques and cash advances are employed
as risk mitigants.

Audit Committee Documented procedures and audit The process of regular review and monitoring Increased
• Stock Risk programmes are in place to ensure physical is in place - however, there is an ongoing
inventory verification in terms of quantity and effort to further tighten fraud risk mitigating
• Quality Risk
quality, grade, age, shelf-life and liquidity, controls and strengthened areas where
• Fraud Risk
and that procedures for payments, receipts weaknesses are identified. We continue to
• Systems and Controls work on adding to and enhancing existing
and confirmations are properly implemented
Failure Risk systemic controls.
and governed to ensure fraud risk is mitigated.

Capital and Investment A thorough analysis of the project economics Current total network utilisation does vary Stable
Committee is undertaken to stress and evaluate potential across our facilities. 2023 did experience some
• Project Execution Risk impacts to project returns; documented inventory stabilisation throughout the entire
procedures exist to ensure functional buy-in supply chain, including actions taken by our
• Asset Utilisation Risk
from all relevant stakeholders; and asset customers. This reduction in global inventory
utilisation risk is mitigated through procedures and the rebalancing of demand has given us
and protocols which govern operational a better understanding of the requirements
excellence. going forward. With this visibility, a majority
of our assets are well-positioned to
accommodate the current demand as well as
incremental increases. Where there are
opportunities for step changes in demand,
plans for asset expansion are in place. Where
demand has stabilised and efficiencies of
production have materialised, plans for asset
rationalisation have been identified.
Currency Risk Committee The Group’s functional currency is the US The sharp devaluation of the Nigerian Naira Increased
Risks • Transactional Currency dollar, which is also the dominant during June, followed by a continuing slide
Risk transactional currency. The Board sets through the second half of the year, impacted
Group-level risk envelopes (including volumes and margins in the food and feed
Capital and Investment transactional currency risk VaR) as part of the businesses. The group has evaluated a switch
Committee annual risk budgeting exercise. The Risk Office from naira to USD as the functional currency
• Translational Currency allocates risk limits for transactional non-USD for all our businesses in Nigeria. It is working
Risk exposures across businesses, and tracks with our auditors EY, IT and Nigeria Country
exposures for adherence to set limits. The Finance teams to complete this transition by
Group accesses spot and forward FX markets end of financial year 2023 which will help
as well as local currency borrowings to hedge mitigate the translation exposure for our
transactional currency risk. Nigerian businesses.

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 Strategic report

Risk type Ownership Mitigation Developments in 2023 Risk

and sub-risks Status
Agricultural Corporate Responsibility To mitigate risks, such as weather, disease We have strengthened our evaluation Stable
Risks and Sustainability and yields which can impact agricultural processes throughout the supply chain when
Committee production and development, we work in our assessing any new investments. This includes,
• Weather Risk managed concessions and farms and with but is not limited to, climate, water and soil
producers on mitigation and adaptation health, human rights and deforestation risks.
• Pests and Diseases Risk
measures, such as good agricultural practices Alongside the launch of our regenerative
• Agronomy/GAP (Good
to optimise resources, and we are exploring agriculture workstream in 2022, we have
Agricultural Practices) Risk
climate-smart agricultural practices. developed further breadth and granularity
We seek to improve wider understanding of our high-level risk hotspotting against forest
of issues in the agri-complex amongst loss, water stress, biodiversity and soil health
stakeholders. indicators. This is bolstered by continued
We have developed more and better improvement in our supply chain mapping.
indicators - including high-level hotspotting In 2023 Olam Agri developed a framework
and field-level studies - which help monitor to evaluate the potential of nature-based
social and environmental risks such as soil solution (NbS) projects that leverage multiple
degradation, climate risk, human rights and value creation options through sustainable
food insecurity. on- and off-farm practices. And ofi launched
the KIND Almond Acres Initiative in 2023 with
KIND Snacks. This three-year regenerative
agriculture project introduces new technologies
and best practices from regenerative agriculture
across 500 acres of ofi’s almond orchards in
California, where 80% of the world’s almonds
are grown.
Political and Risk Committee The Group has a deep-seated presence in The current geopolitical environment Increased
Sovereign • Duty, Tariff and Export/ many of the countries in which it operates, continues to impose a heightened risk of
Risks Import Ban built over many years, and has consequently damage or loss due to War, Civil Commotion,
gained substantial knowledge of local Asset Nationalisation and Forced
• Asset Nationalisation Risk
practices. The Group maintains global Abandonment. Nonetheless, the Group
• Selective Discrimination
political risk and terrorism risk insurance. continues to manage these risks with
Risk
substantial knowledge of local practices,
• Forced Abandonment Risk advice and support from expert consultants,
• Terrorism/Kidnapping Risk and constant monitoring of ground
circumstances.
Capital Capital and Investment The Group has a strong base of long-term We continue to diversify our capital and Stable
Structure and Committee shareholders. We maintain strong banking funding base via a combination of bank
Financing • Interest Rate Risk relationships, providing committed banking facilities including a JPY loan and a flagship
Risks lines, thereby assuring good liquidity. sustainability/Purpose-linked financing as well
• Funding Liquidity
as private placements of notes. Read more in
• Margin Call Risk
our Group CFO's review on pages 18 to 24.
• Credit Metrics Risk
• Activist Investor Risk
• Short Seller Attack Risk

Reputational Responsibility and Our brand and reputation are vital to We continually review sustainability risks Stable
Risks Sustainability Committee maintaining trust and engagement with our through screening against global indices for
Social Risk stakeholders, such as employees, customers, human rights, food security, climate change,
investment community, suppliers and water stress and forest loss. More detailed
• Economic Opportunity partners. To strengthen our ethical and analysis may be conducted where risks are
• Safe and Decent Work compliance standards and to meet identified. For example, following an in-depth
• Safety and Health Risk environmental and social standards, which risk assessment in 2022, Olam Agri subsequently
• Food Safety and Product may impact our reputational risk, the Group adopted a child protection action plan in
Recall Risk has a suite of policies, codes and standards Chad to protect children's wellbeing in cotton
Environmental Risk which include our Code of Conduct, Crisis farming communities. And at ofi, to help
Escalation Procedure, Fair Employment Policy, monitor risks and identify any cases of child
• Climate Action Anti-Bribery and Corruption Policy, labour during the hazelnut harvest in Turkey,
• Healthy Ecosystems Whistle-blowing Policy, Living Landscapes the team conducted unannounced farm
• Water Policy, Plantations, Concessions and Farms inspections and monitored over 600 children
• Soil Health Code, and Supplier Code. The Group is a aged 5-17 using its digital CLMRS app.
• Waste signatory to the Task Force on Climate- We measure our carbon footprint across
related Financial Disclosures (TCFD). the three Scopes - direct emissions, indirect
emissions from purchased energy, and
indirect emissions from our supply chain -
in line with the GHG Accounting Protocols. We
use Terrascope, an end-to-end
decarbonisation platform launched in June
2022, to assist companies with managing
and reducing their carbon emissions.

Olam Group Limited Annual Report 2023 131

Risk management

Risk Type Ownership Mitigation Developments in 2023 Risk

and sub-risks Status
Regulatory Risk Committee The Group’s Market Compliance Office is a No major regulatory changes occurred in Decreased
and • Market Compliance global function whose role is to ensure that the 2023. Expecting changes to EU and UK
Compliance Group is fully compliant with regulations as trading regulations in 2024 - nothing is
Risks they apply on the world’s listed derivative published yet. Changes to MAS reporting
exchanges. requirements published with implementation
are scheduled for October 2024.
Trading continues on multiple soft commodity
markets.
The global regulatory landscape remains
stable. In the US the CFTC is to release
clarification on EEOTCs (Economically
Equivalent OTCs). EU and the UK await new
regulations on trade reporting and risk
capture, and MAS has published updated
reporting requirements for OTC trades,
effective October 2024.
The MCO has been working to upgrade
internal reporting and risk capture systems,
and additionally will be replacing the existing
Trade Surveillance programme.

Audit Committee Olam has in place a comprehensive Ethical The Global Compliance programme continues Stable
• Bribery/Corruption Risk Business Programme (EBP) which includes to be developed and improved to address key
their Code of Conduct and policies relating to risks. The Code of Conduct and all global
• Other Regulatory Risk
Bribery and Corruption, Conflicts of Interest, policies are reviewed annually, and training
• Transfer Pricing Risk
Competition Law, Sanctions and many other updated and conducted routinely. Global
• Taxation Risk visitation of higher-risk countries continues.
legal risks. The Compliance programme
together with global training to ensure The Group continues to monitor existing and
implementation and enforcement. These serve developing sanctions and counterparties and
as a primary deterrent against such risks. to ensure business activities are compliant
Regarding Transfer Pricing, most geographies with applicable regulations.
have detailed policies in place to guide them
on arm’s length pricing, ensuring compliance
with all applicable tax laws.
Natural perils Risk Committee The Group maintains insurance cover against There have been no material developments in Stable
• Pandemic Risk risk of natural disasters, such as flood, fire, 2023. The Group continues to monitor risks
earthquakes and storms. and maintain localised business continuity
• Fire Risk
plans and drills where relevant.
• Flood Risk
• Earthquake Risk
• Hurricane/Typhoon/Storm
Risk

Other Risks Audit Committee The Group employs IT security experts, as well As many of the Group’s employees continued Stable
• Cybersecurity Risk as having in place IT cybersecurity to work flexibly, the IT and digital capabilities
infrastructure to mitigate against electronic continued to be leveraged to ensure that
• IT Risk
viruses, ensure currency of software deployed online working is seamless and associated
throughout the Group, and employ data cybersecurity risks are minimised.
leakage prevention controls.

Nomination and Succession plans are in place and are New organisational structures were put in Stable
Remuneration Committee reviewed annually to provide a second line of place for each operating group. The structure
• Key Persons Risks leadership from within the Group’s Operating and framework for succession continues to be
Committee and Management Committee. reviewed and strengthened both organically
and through recruitment. A strong second line
of leadership has been embedded across the
various businesses, regions and functions of
the respective operating group.
Strategic All strategic risks are overseen by the offices of the GCEO and CEO, and by the Executive Committee.
Risks

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 Strategic report

Driving an integrated mindset through

Multi-Capital Accounting
Olam strives to deliver long-term value by embedding Natural, Social and Human Capital
impacts and dependencies into business strategy and key decision-making analyses
and processes.

The food system forms an inextricable link between people’s

health and planet health. Food production and supply chains
need to be transformed to meet the needs of people and the
environment. As a leading food and agri-business supplying
food, ingredients, feed and fibre worldwide, Olam believes in
playing an integral role in the food system transformation
and delivering consistent returns to all our stakeholders
through extensive management of our non-financial capitals.
Olam focuses especially on the Natural, Social and Human
Capitals which are not assessed in conventional accounting
and reporting frameworks. A dedicated department within
the Finance function was established to holistically approach
multi-capital valuation and accounting and embed the same
into business decision-making. As reported in The Business
Times, Olam is among the first in Singapore to report detailed
Natural Capital accounts.
Multi-capital accounting (MCA) is a systems approach that
addresses the complexity of today’s agricultural and food
production systems inextricably intertwined with and
underpinned by the natural environment and society. Olam
references the Natural, Social and Human Capital Protocols
issued by the Capitals Coalition which are frameworks to Driving a mindset change
identify and measure the value that the organisation receives Assessing and quantifying our environmental and social
from Natural, Social and Human Capitals. This approach impacts and dependencies in monetary terms enables us
enables a holistic understanding of the system in which to communicate our sustainability performance with both
Olam operates, leading to integrated decision-making internal and external stakeholders in a common business
which benefits a holistic set of stakeholders. Olam sits on language. This drives a mindset change as stakeholders
the Capitals Coalition Advisory Panel to provide input begin to recognise the economic value of the benefits derived
and guidance that feeds into the Coalition’s strategic from non-financial capitals.
development. Through the Advisory Panel, Olam leads
and advocates for a capitals approach in the agriculture Internalising externalities
sector, and develops and leads collaborative projects Olam strives to ‘internalise’ externalities by using valuation
on behalf of the Coalition. methodologies (often based on environmental economics
MCA enables Olam to lead the sector towards achieving concepts) to translate our impacts and dependencies on the
regenerative and sustainable agricultural and food systems. environment and society into monetary values, working with
With a holistic understanding of its dependencies and businesses to incorporate these into financial analyses that
impacts on Natural, Social and Human Capitals, Olam can drive business strategy and inform key business decisions.
make informed business decisions to address externalities
and enhance positive impacts. Olam endeavours to be
Delivering long-term value for
a resilient and reliant partner for all its stakeholders by all stakeholders
creating long-term value. With MCA, Olam is better Holistic multi-stakeholder involvement and engagement is at
equipped to mitigate the risks and seize the opportunities the heart of Olam’s way of operating. MCA allows Olam to
presented by environmental and social challenges such as achieve this in a systematic manner by striving to incorporate
climate change, biodiversity loss and social inequities, thus quantified impacts into decisions that impact the lives and
strengthening the resilience of our business ecosystem. livelihoods of various stakeholders.

Olam Group Limited Annual Report 2023 133

Integrated Impact Statement

Social Capital Impact Valuation: Valuing

the impact of agriculture-related
interventions for coffee farmers
in Honduras using the Social Return
on Investment (SROI) framework
Social Capital Impact Valuation: What are we The segments were identified into four clear groups; A, B, C
valuing and why should we focus on it? and D, based on differing socio-economic characteristics.
What it means for a business to ‘create value’ is changing. Segment A farmers are typically more entrepreneurial
It is no longer enough to consider Financial Capital alone. compared to other farmers, with larger plots of land and
Both customers and investors expect to see a company’s achieving higher-than-average yields. They are
impact on society and the environment reflected in its overall knowledgeable and have access to credit to invest in labour
performance. Through Social Capital Impact Valuation, we and agricultural inputs.
can demonstrate to our stakeholders in a more granular and
Farmers in segments B and C are also knowledgeable and
verifiable way how investment in our sustainability
have the willingness and capability to invest in labour and
programmes is positively impacting farmers and
agricultural inputs and often have other off-farm revenues.
communities. This builds trust as they gain greater visibility
While Segment B farmers usually achieve high yields, they
of the action taken and value created.
are unfortunately limited by the size of their farms. On the
About the Coffee Honduras programme contrary, Segment C farmers have larger plots of land but
We carried out a Social Capital Impact Valuation for livelihood do not achieve as strong a yield due to limitations, such as
interventions provided to coffee farming households in access to labour.
Honduras. The programme aims to narrow the Living Income
Farmers in Segment D are often the most trapped in poverty
(LI) gap1 of approximately 1,000 coffee farmers. It was
and therefore have insufficient knowledge of coffee
identified that the scale at which the Living Income gap
production and struggle to produce large yields due to
would close would differ considering farmers’ typology
smaller plots of land. The segment D farmer will prioritise
and the type of interventions provided, therefore a farmer
their land to grow crops for food and ensure subsistence of
segmentation exercise was conducted, covering around
their households, as they typically lack resources, in both
400 farms. As a result, tailored services and support were
money and time, to invest in crops they can sell.
set up and delivered to the different farmer segments, which
maximised both ofi’s and the farmers’ return on investment.

Figure 1: Farmer segmentation by average yield and average hectares

Segment Big land, Small land, Big land, Small land,
high yield high yield low yield low yield
Total
A B C D

Average yield 1,890 1,792 902 844 987

Average hectares (Ha) 10 2 9 2 5

1. A living income gap represents the value that a household would need to earn on top of their actual income, in order to meet their basic needs. Source: IDH

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 Strategic report

Key programme interventions

We used the following income generation related interventions to evaluate how the tailored support helped coffee farmers
increase their yields and in turn their incomes:

Intervention Description Segment Segment Segment Segment

A B C D
Direct market Registered and geo-localised more than 1,000    
access coffee farmers in the Olam Farmer Information
System (OFIS) and enabled direct market access
technology through the Olam Direct (OD)
application.
In 2022-23, by September 2023 there were
around 1,227 OD transactions, procuring
the equivalent of 359.79 MT of green beans.
Good Agricultural By September 2023, ofi delivered GAP training 
Practices (GAP) to around 400 farmers.
training
Provided general coffee GAP training on specific
areas such as pruning, weeding, harvesting and
other practices (based on farmers’ most urgent
requirements and readiness to adopt new
practices or invest in their coffee fields).
Demonstration Around 100 demonstration plots were established  
plots for farmers from Segment B and C.
Advanced Provided training to farmers on advanced farming   
Agronomy topics based on their needs and readiness such as
training agro-chemical management, soil conservation
and improvement, soil analysis result
interpretation and integrated pest management.
By September 2023, around 400 farmers were
trained in advanced agronomy.
Agricultural inputs Assisted farmers in using organic practices such   
for soil analysis, as mountain microorganisms or composting of
composting and harvest residues (pulp) to complement or reduce
nursery required fertiliser use.
More than 200 farmers were trained in
composting.
Agricultural Coffee seedlings distributed to Segment D 
inputs: Coffee farmers, for the development of coffee nurseries.
seedlings
Agricultural Basic coffee equipment, such as collection bowls 
inputs: Coffee and machetes) were distributed to Segment D
equipment farmers.
Solar driers Assisted 31 farmers in setting up solar driers 
including user training.
Financial Literacy Conducted Financial Literacy training for  
training 142 farmers.

Olam Group Limited Annual Report 2023 135

Integrated Impact Statement

The results of our tailored interventions

Segment Yield in baseline year Yield in 2022-23 Difference Average farm area Total difference % Difference
(2021-2022)

GBE kg/ha GBE kg/ha GBE kg/ha ha GBE kg %

A 2,141.04 1,890.14 (250.90) 10.35 (2,596.82) -12%

B 2,515.97 1,791.85 (724.12) 1.78 (1,288.93) -29%
C 763.26 901.50 138.24 8.90 1,230.34 18%
D 706.04 843.76 137.72 1.66 228.62 20%

As per the table above, coffee farmers in Segments C and Valuation framework applied:
D saw increases to their yields following the programme The impact of the interventions implemented by ofi Honduras
interventions. This equated to an annual increase in income on the community was assessed through a social value
of approximately US$6,009 per farmer1 and US$1,132 per creation approach framework - Social Returns on Investment
farmer2 respectively. (SROI)4.
However, Segments A and B reported lower yields in SROI = Net Return (USD)/Total Investments (USD)
2022‑2023 due to a combination of reasons. Some farms
= Total Outcome (USD) - Total Investments (USD)/
focused on planting seedlings in their nurseries, others
Total Investments (USD)
stumped their coffee trees to encourage future yield growth,
and some of the farmers’ land was fallow at the time the Where5
survey was conducted. Despite these impacts, the yield
Total Outcome (USD) = Quantity x Proxy financial value x
generated still attracted a price premium due to certified
(1 - deadweight %) x (1 - displacement %) x (1 - attribution
production.3
%) x (1 - drop-off %)
This additional income can support farmers in various ways,
including helping them save for unexpected costs, cover
labour fees or strategically re-invest in their farm towards
more developed GAP.

Figure 2: Composting training for

coffee farmers

1. Segment C mostly produced wet parchment (certified). Considering US$2.48 as the average cost per kilograms of wet parchment (conventional) in Honduras.
2. Segment D mostly produced wet parchment (conventional). Considering US$2.52 as the average cost per kilograms of wet parchment (conventional) in Honduras.
3. Segment A and B mostly produced dry parchment (certified). Considering US$2.86 as the average cost per kilograms of dry parchment (certified) in Honduras.
4. SROI Guide: https://www.socialvalueint.org/guide-to-sroi.
5. Attribution percent is not considered as the results are attributed to all stakeholders who have partnered on the select interventions enabling a systemic
approach towards social capital enhancement. Impact is generated collaboratively and collectively by all stakeholders that have contributed monetarily/
non-monetarily. Drop-off is not relevant as the assessment is for change observed over two years and it has already been considered in the SROI calculation
as part of the farmer’s income.

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 Strategic report

Figure 3: Steps undertaken for conducting SROI assessment

1 3 5

Stakeholder mapping Evidencing outcomes

& engagement & giving values Reporting

Establishing Mapping Data collection

scope social outcomes & analysis
(geographical
& time period)
2 4 6

Figure 4: Impact map for Honduras coffee farmer support

Learn sustainable Increase in

agricultural practices sustainable farming

GAP training
Decreased
Avoid transport/ expenses through
training cost better farming
Advanced practices
Farmer training Better standard of
agronomy
programmes Job opportunities to living
training
deliver training
programmes
Financial
Literacy
training Farmers receive
personalised support Farmers receive a
Improved access to
better yield
living income

Farmers receive
Farmer support Subsidised Rainforest/UTZ
materials for certification
audits
Economic
development in
Avoid purchase cost region
Provision of Farmers receive a
Access to coffee price premium
materials equipment

Improved farming
practices
Provision of
Improvement in
solar driers
wellbeing

Intervention Input Output Outcome Impact

Olam Group Limited Annual Report 2023 137

Integrated Impact Statement

Once we finalised the material outcome indicators and

collected the data to show changes on the ground, we
valued these indicators using the most comparable financial
value, known as a financial proxy. The financial proxies were
identified through secondary research, existing data or
discussions with farmers and communities. The valuation
process involved analysing each material outcome indicator
while considering four key factors - deadweight,
displacement, drop-off and attribution1.
SROI result
The below impact map, co-developed by internal teams,
helps visualise how the interventions use resources to deliver
outputs that lead to outcomes. The relationship between
inputs, outputs and outcomes is called the ‘theory of change’.
The SROI valuation for the change created over the period
of crop years Oct 2021-Sept 2022 and Oct 2022-Sept 23
indicated that for every dollar invested, a total of approximately
eight dollars’ worth of social value was achieved. Therefore,
an SROI ratio of 8:1.
These social return results would not have been possible
without the support of various stakeholders (both monetary
and non-monetary), including ofi’s customers, participating
Approach for the valuation farmers, local institutions and ofi’s local Honduran operations
The scope of this valuation primarily covered income and field staff. Together, we have delivered a systemic
generation-related interventions for selected coffee farmers approach to social capital enhancement.
in Honduras, and the change was valued over two consecutive
crop years (October 2021-September 2022 and October In Table 1 we have displayed the social returns in a Profit and
2022-September 23). Understanding the value created by Loss (P&L) Statement format. Line items under Social Capital
these interventions is based on two key aspects: reviewing Enhancements and Deteriorations are calculated by applying
the data collected and interactions with local stakeholders. valuation proxies (i.e. monetisation factors) to the social
ofi’s field and local teams in our Honduran operations were outcomes. Please refer to Table 2 Notes to valuation
regularly in touch with the farmers and communities to approach for more details.
understand how we are contributing to positive social change.

Table 1: Social Capital P&L for selected social interventions in Honduras

Impact Valuation (added/deducted) for the period Sep 2022 - Oct 2023 US$

A. Social Capital Enhancement (+ impacts) 2,041,446

Advanced Agronomy training (incl. Financial Literacy) 1,704,298
General GAP training 140,998
Direct market access 1,262
Provision of agricultural inputs (incl. nurseries support) 191,276
Demonstration plots 3,611

B. Social Capital Deteriorations (- impacts) 0

Social Capital Profit/(Loss) (A-B) 2,041,446

1. Four criteria are considered for determining impact:

• Deadweight: Estimation of the value that would have been created without the interventions
• Displacement: Assessment of how much of the intervention displaced other outcomes
• Drop-off: Estimation of the proportion of outcomes not sustained
• Attribution: Assessment of how much the outcome was due to a contribution.

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 Strategic report

5. Exploring how to create more specific links between

demonstration plot learnings and the farmers’ adoption
of new agricultural practices would help us further
understand the impact and benefit of demonstration plots
to the farmer.
6. Monitoring the change in basic production costs due to
adoption of certain GAP/advanced agronomy practices,
would allow us to measure if there was a reduction in
energy-use or water-use cost.
7. The Advanced Agronomy Training programme could be
customised further, i.e. incorporating training
on climate resilience which would help capture more
sustainable farming practices.
In addition, by September 2023 the programme also
delivered on the areas noted below, however these are not
included in the SROI calculations either because their value is
indirectly captured in other valuations (thus avoiding double
counting or overclaiming) or these interventions are at early
stages (thus the outcome is not material at this time):
• By September 2023, 463 farmers attained Rainforest
Alliance (RA) certification which will further help farmers in
selling their crops at a premium rate and simultaneously
grow coffee sustainably.
• Farmers were able to access or were provided with access
to essential food crop seed packs for enhancing food
security.1
• Farmers received improved access to better education by
What did we learn? distributing school material (e.g. notebooks, educational
Combining key learnings with knowledge-sharing through booklets, pens) to children (specifically from Segment D)
partnerships with our key stakeholders will improve access to with the aim to promote education and literacy.
data which could help us tailor interventions to specific The insights gained from the Social Capital Impact Valuation
needs. Below are a few areas the project team identified that are critical for refining ofi’s on-the-ground approaches to
can help us further refine our impact valuation results and identify how, in partnership with our stakeholders, ofi can
tailor our future programmes: help farmers augment their livelihoods.

1. Capturing learning outcomes and specific benefits from Some level of judgement is applied while assigning proxy
the training for each farmer to understand what has values in such social impact valuation studies. SROI
worked well will help us identify new strengths of each calculation does not assess the impact of climate change to
farmer and help us support them better. the outcomes identified. Since outputs and outcomes are
2. The nursery set-up provided the farmers and the valued at a level of stakeholder engagement, it is difficult to
community with proximity to quality coffee seedlings. capture all aspects and arrive at holistic results. We will
Tracking the planting and growth of these coffee consider the learning from this pilot in future assessments
seedlings could also allow us to optimise budgeting. and continue to make a case for social investments to deliver
maximum social value on the ground.
3. Better tracking of the growth of essential food crop seed
distributed would allow us to monitor the outcome
indicators such as reduction in nutrition-related illnesses,
additional income gained or saved, or annual purchase
cost saved.
4. Monitoring the usage of school kits distributed, and
measuring the outcome indicators, such as school
attendance, would allow us to identify if there was a
reduction or increase in attendance.

1. This intervention was done for most farmers in 2022, however was postponed in 2023 given el Niño - scheduled for June 2024.

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Integrated Impact Statement

Table 2: Notes to valuation approach

Stakeholder Outcome indicator name Financial proxy Financial proxy value
Farmers Learning better agriculture Annual average training US$34 per farmer for
practices through GAP and/or cost saved per farmer GAP training and
Direct beneficiaries of the
Advanced Agronomy training US$123 per farmer for
programme. The key objective is
Advanced Agronomy
to enhance their livelihoods.
training
Increased financial skills and Annual average training US$34 per farmer
knowledge on personal cost saved per farmer
financial management
through Financial Literacy
training
Commuting cost saved for Commuting cost avoided for US$291 per farmer
obtaining similar trainings obtaining similar support/ based on a 6-month
training (annual average) period training course
Increased income associated Average annual increase in US$1,186 per farmer
with training (including yield per farmer and price of
premium on good-quality wet (or dry parchment),
produce) certified or conventional
Direct market access Cost saved on finding US$6 per farmer
alternative to direct
procurement or cost saved
in developing market
linkages by employing
third-parties
Reduction in fertiliser use due Average fertiliser usage US$1,759 per farmer
to use of composting, reduction and associated
mountain microorganisms, soil cost saved
analysis and foliar analysis

Access to coffee seedlings and Average annual cost of US$14 per farmer
other materials for the coffee seeds saved including
development of a coffee average cost of
nursery transportation to procure
seedlings
Access to basic coffee Average cost of basic coffee US$25 per farmer
equipment (collection bowls, equipment saved including
machetes, etc.) average cost of
transportation to procure
Access to practical examples Average investment in case US$15 per farmer
of success of implementing demonstration plots/
new practices (demonstration sections where to be done
plots) individually
Government Access to structured systems Not covered N/A
to support farmers
Supports smallholder farmers in
(distribution of agricultural
coffee production.
inputs, training) and giving
them direct market access
Trainers1 Access to employment Average cost of trainer US$1,043 per trainer
opportunity locally (along with salary
Responsible for implementing
new professional skills learnt)
and managing the programme.

1. We have accounted for trainers (our own team of agronomists) and they were part of the managed sustainability programme in 2022.

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 Strategic report

Natural Capital Valuation: Assessing

Natural Capital costs in coffee operations
Agricultural production relies heavily on the availability of footprint of our coffee processing facilities (tCO2e per metric
Natural Capital resources like fertile soil, accessible water, tonne of product processed).
and natural pollinator populations. These elements are
Water use
essential for generating yields that sustain farmers’ livelihoods.
For water usage, ofi employs a shadow price methodology
Globally, an estimated 12.5 million to 25 million smallholder to estimate the societal cost of water consumption. The
farmers depend on the coffee industry for their livelihoods, approach is based on the GIZ, NCD and VfU Shadow Price
according to figures from Fairtrade1 and the FAO2. However, Method4, considering basin water stress5 and population size
the majority of these farmers face significant challenges among other variables. The shadow prices are calculated at
including limited access to formal agronomy training, the farmer group level and processing facility level which
inadequate resources, small farm sizes and insecure land may have differing sources and prices for water use. Using
tenure. These factors often hinder the adoption of sustainable the Total Economic Value (TEV) framework for water
agricultural practices, which are crucial for preserving consumption captures the benefits that water provides to
Natural Capital over the medium and long term. As a result, industry, agriculture, consumers, human health and the
coffee production often imposes a cost on nature in the form environment which may not be reflected in the market costs
of GHG emissions, degradation of soil structure and fertility, associate with a municipal water bill. The method estimates
depletion of ground and surface water, and loss of natural the use-value of four different ‘services’ provided by water,
ecosystem services critical to agricultural production. namely: water’s value for agriculture, domestic (household)
supply, human health impact from reduced water availability
To address these challenges, we employ Natural Capital
and environmental services (i.e. ecosystem impact such as
valuation techniques, which leverage environmental
biodiversity loss).
economics to assign a monetary value (US$) to our impacts
and dependencies, encompassing carbon emissions, water The Total Economic Value framework underscores the
usage and ecosystem services. Quantifying Natural Capital importance of recognising and preserving the broader
in this way enables us to assess and mitigate risks while ecosystem from which water resources are drawn, aligning
fostering investments that promote a positive impact on with ofi’s aim to regenerate the living world. The river-basin
landscapes and ecosystems. level shadow price is then applied to the water footprint
(m3 per metric tonne of GBE) which we report for each farmer
Natural Capital externalities valuation group on AtSource.io. For processing operations, the country
Methods level shadow price is applied to water footprint (m3 per tonne
of processed coffee) at each processing facility.
Carbon emissions
ofi applies a Social Cost of Carbon3 (SCC) priced at US$90 Unlike the global application of SCC, water valuation adopts
per tCO2e. This measure integrates the full hidden societal a more localised ‘Basin level’ approach due to the diverse
costs of climate change impacts attributed to GHG water availability/stress and demands across the 18 coffee
emissions. The SCC represents the long-term ‘cost of origins sourced by ofi.
inaction’ and is a yearly estimate in US$ terms of the current
and future potential economic damages that would result Agriculture: Assessing Natural Capital
from emitting one additional metric tonne of CO2e into the costs for twenty selected coffee farmer
atmosphere now. The SCC is applied to the carbon footprint supply chains
tCO2e per metric tonne of green-bean equivalent (GBE)
product procured which is calculated for each farmer group In our study, we evaluated twenty AtSource+ coffee farmer
(FG), leveraging ofi’s Digital Footprint Calculator and using groups sourced from five different origins6 to assess their
primary data collected on these supply chains, maintained GHG emissions and water use related Natural Capital Costs
on the AtSource.io platform for ofi’s sustainable products (NCC). Reporting on the NCC is based on each metric tonne
and supply chains. The SCC is also applied to the carbon of product which makes the cost intensities very sensitive/

Shadow price
of water = Agricultural
values + Actual market
value* + Health
impact + Environmental
impact
1. https://www.fairtrade.net/product/coffee
2. https://www.fao.org/markets-and-trade/commodities/coffee/en/
3. We have used the average of the SCC range recommended (US$80 - US$100) by Massachusetts Institute of Technology (Pindyck, R S. 2019,
The social cost of carbon revisited)
4. https://www.africabusiness.com/wp-content/uploads/2015/09/INTEGRATING-WATER-STRESS-REPORT_FINAL.pdf
https://naturalcapital.finance/wp-content/uploads/2018/11/INTEGRATING-WATER-STRESS-REPORT_FINAL.pdf
GIZ, NCD, VfU (2015) Integrating Water Stress into Corporate Bond Credit Analysis
5. Basin-specific Baseline Water Stress values are extracted from WRI Aqueduct 4.0 Database based on facility and farmer group geo-locations
6. From these twenty selected FGs, we purchased 43% of their total production of GBE volumes. Out of the 20 selected FGs, six FGs are from Peru, five each FGs
are from Mexico and Colombia, three from India, and one from Honduras. 19 FGs produce Arabica and one produces Robusta.
* The financial proxy values were identified through secondary research and existing data.

Olam Group Limited Annual Report 2023 141

Integrated Impact Statement

dependent on farm level yields. Thus, understanding the underlying yield dynamics is also crucial for interpreting these NCC
footprints effectively.
Our overall procured volumes from these twenty FGs fell 25% from around 12,000 metric tonnes in 2021 to 9,000 metric tonnes
in 2022. This was primarily led by an 86% reduction in procurement from FGs in Peru during this period. Another significant
change in procurement was observed in Honduras which represented 8% of total procured volumes in 2022, up from zero in
2021. The following table presents key statistical attributes of the diverse group of twenty farmer groups under study, providing
insights into their characteristics and performance metrics.

Table 1: Key farmer group attributes

Farmer group attributes Mean Range

2021 2022 2021 2022

Farm area (hectares) 1069ha 806ha 93-4237ha 58-4350ha

Yield (metric tonnes/hectares) 1.16t 1.18t 0.45-2.29t 0.47-1.97t
GHG/metric tonne GBE 6.36tCO2e 5.87tCO2e 3.02-18.69tCO2e 2.73-18.19tCO2e
Water use/metric tonne GBE 48.86m3 31.90m3 6.66-241.19m3 6.72-141.16m3

Table 2: Natural Capital Profit and Loss Statement for selected coffee farmer groups showing
GHG NCC and Water Use NCC
Impact Valuation (added/deducted) for the financial years Value to society and environment Value to society and environment
ended 31 December 2022 and 2021 2022 (USD) 2021 (USD)

Natural Capital Enhancement (+ impacts) – –

GHG sequestration (on-farm agro-forestry) –* –*
Natural Capital Deteriorations (- impacts) (4,421,947) (7,774,279)
Social Cost of Carbon (3,322,929) (5,762,318)
GHG emissions: Fertiliser production (1,141,177) (2,003,058)
GHG emissions: Use of fertiliser (767,071) (1,326,524)
GHG emissions: Management of crop residues (768,970) (1,292,221)
GHG emissions: Others (645,711) (1,140,515)
Shadow Price of Water (1,099,017) (2,011,961)
Water Use: Irrigation (blue water) (977,563) (1,829,665)
Water Use: Non-Irrigation purposes1 (blue water) (121,454) (182,296)
Natural Capital Profit/(Loss) (4,421,947) (7,774,279)

* We have agro-forestry and programmes across all our coffee origins, and are currently working towards collecting the essential data points to be able
to provide the carbon sequestration data and trends.

A. Efficient use of agricultural inputs, land and residues metric tonne (US$/tonne) decreased by 20%, from US$461
can lead to reduction in the social cost of carbon per metric tonne to US$370 per metric tonne, while
emissions per metric tonne of GBE procured dropped from
As a part of our sustainability strategy for coffee (Coffee
5.13tCO2e to 4.12tCO2e.
LENS 2.0), we acknowledge the pivotal role climate and
regenerative agriculture play, and have set ambitious targets
2. Contributors to GHG Emissions
around emission reductions and regenerative agriculture to
be achieved by 2030. The GHG-related NCC are associated During 2022, fertiliser production and crop residue
with three key sources of GHG emissions, namely fertiliser management emerged as primary contributors to GHG
production, fertiliser use, and management of crop residues. NCC, accounting for 34% and 23% respectively. The GHG
NCC from fertiliser production and crop residue
Key Focus Areas and Findings2
management experienced substantial declines of 43% and
1. Reduction in GHG Emissions 40% respectively. Yield (GBE/ha), increased by 13% from
1.13 metric tonnes per hectare to 1.28 metric tonnes per
The overall GHG NCC (US$/year) witnessed a remarkable
hectare, which is consistent with expectations from
42% decline from US$5.76 million to US$3.32 million. This
improved crop management practices (pruning, weeding)
absolute reduction can be attributed to a decrease in GBE
and improved nutrition management, although the role
volumes procured and targeted sustainability initiatives
of multiple external factors such as climate, pests etc.
focused on curbing carbon emissions. GHG NCCs per
cannot be discounted without further analysis.

1. Non-irrigation purposes include water used in fertiliser application; seeds/seedlings/tree planting and clearing; and in post-harvest activities.
2. All data points in the findings below refer to the change from 2021 to 2022 for all twenty FGs, unless otherwise stated

142 olamgroup.com
 Strategic report

3. Fertiliser production and usage do two rounds of irrigation. In the case of these FGs in
India, the yield increased 30% from 1.24 metric tonne per
GHG NCC per metric tonne of GBE procured from
hectare to 1.61 tonne per hectare. The reduction in
fertiliser production and fertiliser use decreased by 21%
irrigation water consumption is a commendable effort
and 19% respectively. In India1, this is consistent with
while increasing the yield and farm productivity at the
on-farm trainings provided to farmers and awareness on
same time.
the appropriate selection, combination and usage of
fertiliser types, which helped in optimising yield, cut down
3. Blue water used for non-irrigation purposes
in fertiliser application and reduction in the GHG emissions.
Excluding the three FGs in India, all other FGs used a Blue water served various non-irrigation purposes across
practice called mulching where composted pulp is used as coffee farms in the five origins, including fertilisation,
an organic fertiliser and is directly applied to the plant, seed/seedling/tree planting and clearing, and post-harvest
adding to its required nutrition. In the case of FGs in Peru, activities6, 7. The NCC related to blue water use for
where organic production practices are dominant, mulching non-irrigation purposes decreased by 33%, notably
represented an important part of nutrition/fertiliser. driven by a reduction in water used for seed/seedling/tree
However, one Mexican FG witnessed a notable increase planting and clearing due to ofi's active encouragement
in fertiliser application, possibly due to extended yield on adoption of good agricultural practices for sustainable
benefits over multiple crop seasons. and long-term resilient plantations. This reduction was led
by Mexican and Colombian FGs. Whereas, Indian FGs
4. Crop residue management reduced their non-irrigation water use NCC per metric
tonne of GBE by over 10%, primarily due to awareness
Two Indian FGs achieved reductions (25% and 7%) in
efforts promoting the use of eco pulpers, reducing water
GHG NCC per metric tonne through better management
consumption in post-harvest activities from four to five
of crop residues, while others maintained similar levels.
litres per kilogram to 0.5 litres per kilogram.
B. Assessing the hidden cost of water use in selected
4. Rainwater dependency and economic valuation
coffee supply chains
All FGs, including those located in water-scarce areas,8
We studied the Total Economic Value (TEV) of water
depended on rainwater for production. An estimated
consumption across the twenty FGs located in Peru,
average value of US$6,500 per metric tonne of GBE
Mexico, Colombia, India, and Honduras.
per year was assigned to the dependency on rainwater
Key focus areas and findings2 for irrigation in water-scarce areas.
1. Inverse shadow price (m3/US$)3 analysis As a part of our sustainability strategy for coffee,
we aim to save 1.5 million m3 of water annually by 2030
In 2022, a comprehensive assessment was conducted
by implementing better water management with
across five different origins, revealing varying inverse
irrigation technology.
shadow prices associated with water consumption:
Honduras: 0.81 m3, Peru: 0.60 m3, Colombia: 0.42 m3, In summary, this case study underscores the critical
India: 0.41 m3, and Mexico: 0.40 m3. importance of investing in farmer training programmes
focused on GAP and agro-forestry to effectively manage
Factors influencing these prices varied significantly
Natural Capital costs and mitigate environmental
among the regions. Notably, Honduras exhibited the
degradation. The results demonstrate the feasibility of
lowest water stress, resulting in minimal contributions
achieving significant reductions in emissions and water
from its agricultural value4 to its shadow price.
usage while simultaneously increasing farm yield and the
Conversely, India and Mexico, with notably higher
potential economic returns to the farmers. However,
baseline water stress scores, demonstrated substantially
challenges such as the vulnerability to ill-timed rainfall,
higher agricultural value (US$1.65 per m3 and US$1.54
particularly evident in origins like India, highlight the urgent
per m3 respectively). Colombia was characterised by
need for sustainable irrigation practices to safeguard
a significantly higher domestic water tariff5 (US$2.14
profitability and preserve natural resources. Furthermore,
per m3), reflected a correspondingly high shadow price.
initiatives such as ofi’s training on fertiliser use and post-
harvest activities play a crucial role in minimising
2. Blue water used for irrigation
environmental impact. Moreover, ofi’s agro-forestry
In 2021 and 2022, all FGs primarily relied on rainwater programmes across various origins mark a promising step
(green water) for production. However, three FGs in India towards fostering sustainability in agricultural supply chains
had to incorporate irrigation. The net cost of blue water worldwide. The integration of environmental conservation
for irrigation decreased by 47% from US$1,829,665 to and agricultural productivity remains essential for building
US$977,563, attributed to reduced irrigation needs in a resilient and sustainable future.
2022 due to timely rainfall. In India, all farmers typically

1. Two out of the three India FGs recorded production volume increases of 41% and 25% respectively whilst keeping the production area almost unchanged,
translating to an improvement in yield of 37% and 25% respectively.
2. All data points in the findings refer to the change from 2021 to 2022 for all twenty FGs, unless otherwise stated.
3. This metric indicates the m3 of water consumed to incur US$1 in hidden externality costs. The higher this metric, the better.
4. Agricultural values are included within the Shadow Price method as irrigation is the dominant human activity leading to water stress.
5. Base tariff rates from IBNET and further adjustments based on existing methodology.
6. No or insignificant water usage noted in LUC, pesticide use, crop residue management, farm machinery and manure management.
7. The embodied water used in fertiliser production, pesticide production and electricity generation are not included in this analysis.
8. The three FGs in India are identified as high-water risk, and the two FGs in Mexico as low-medium risk, as per data gathered from WRI Aqueduct.

Olam Group Limited Annual Report 2023 143

Integrated Impact Statement

Processing: Assessing Natural Capital

costs for two large coffee facilities
We evaluated two soluble coffee facilities on GHG and water use related Natural Capital Costs (NCC). The below table enlists
key emissions and water-use metrics for the two facilities.

Table 3: Key processing facility attributes

Emissions intensity (tCO2e/tonne) Net water consumption intensity (m3/tonne)

Facility Country 2021 2022 2021 2022

Olam Café Vietnam 3.53tCO2e 2.87tCO2e 24.25m 3

18.36m3
Outspan
SEDA Outspan Spain 1.78tCO2e 1.66tCO2e 15.61m3 16.58m3

Table 4: Natural Capital Profit and Loss Statement for two processing facilities showing
GHG NCC and water use NCC
Impact Valuation (added/deducted) for the financial years ended Value to society and environment Value to society and environment
31 December 2022 & 2021 2022 (US$) 2021 (US$)

Natural Capital Enhancement (+ impacts) 2,732,584 3,016,486

Wastewater treated 2,732,584 3,016,486
Water consumption: rainwater 0 0
Natural Capital Deteriorations (- impacts) (10,871,036) (12,243,096)
Social cost of carbon (6,832,629) (7,801,429)
GHG emissions: grid electricity
(6,832,629) (7,801,429)
GHG emissions: non-renewable fuels
Shadow price of water (4,038,407) (4,441,667)
Water consumption: groundwater including well and
borehole
Water consumption: municipal supply
(4,038,407) (4,441,667)
Water consumption: surface water supply (dam/river/
stream)
Water consumption: tanker trucks
Natural Capital Profit/(Loss) net impact (8,138,452) (9,226,610)

We studied the GHG-related NCC across two soluble coffee The results of our Natural Capital Analysis showed that
processing facilities located in Spain (SEDA Outspan) and processing facilities have different hidden costs based on the
Vietnam (Olam Café Outspan). The coffee operations in different energy (renewable and non-renewable) mix,
Spain primarily service the European market, whilst the plant operational efficiencies, and the water basin and jurisdiction
in Vietnam supports Asia. At our plant in Spain we process they are operating within.
soluble coffee and mixes of coffee with chicory or cereals,
pure instant chicory and mixes of cereals without coffee.
Through SEDA we offer private label solutions to coffee
customers across Europe with a range of different packaging
types. ofi is the largest exporter of soluble coffee from
Vietnam. Our soluble coffee plant is the largest single
processing plant for bulk supplier companies with coffee that
is UTZ certified.

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Key focus areas and findings1 3. Wastewater treatment and externalities control

A. Assessing the social cost of carbon2 Vietnam treated around 50% of water3 used, aiming
for zero water discharge, contributing to a reduction
1. Reduction in greenhouse gas emissions in water-use related NCC. The Spain facility treated an
impressive ~75% of the water used in the facility4 both
Vietnam and Spain witnessed reductions of 19% and 7% years. The significant volume of wastewater treatment
respectively in GHG NCC per metric tonne of soluble helps the facility contain its externalities cost related
coffee, resulting in an overall decrease in emissions to water-use.
intensity from 2.79tCO2e per tonne to 2.40 tCO2e per
tonne. Vietnam’s performance was attributed to a 13% The case study showcases significant strides in our
reduction in absolute emissions, driven by an increased sustainability initiatives, particularly evident in the adoption
proportion of renewable energy in its energy mix. of renewable energy and the reduction of emission intensities
across the processing facilities. The establishment of annual
targets for renewable energy usage at the Vietnam facility
2. Renewable energy usage
underscores our efforts to advancing renewable energy
Vietnam achieved a 30% rise in energy consumption from integration. Moreover, the Spain facility’s impressive
renewables, elevating its renewable energy share from treatment of approximately 75% of wastewater reflects
43% to 56%, leading to a reduction in GHG NCC per proactive measures to mitigate water-use-related
tonne of soluble coffee from US$317 to US$258. Annual externalities and maintain environmental stewardship.
targets for renewable energy proportion were set at the Moving forward, continued efforts to enhance renewable
Vietnam facility, with a 2023 target of approximately 57%. energy integration and wastewater treatment will be pivotal
The Spain facility continued to maintain a 45% renewable in furthering our environmental sustainability goals and
energy proportion in its energy mix. fostering a more resilient and eco-friendlier operational
framework.
3. Decoupling emissions from production volume
Vietnam processed 7% more volumes while reducing GHG
emissions by 13%, by shifting towards renewable energy
sources like spent ground coffee, cashew shells and others
in shell boilers.
A commitment to a 50% reduction in Scope 1 and 2 GHG
emissions in processing plants by 2030 against a 2020
baseline year was declared in the Coffee LENS 2.0.

B. Understanding the hidden cost of water use

1. Inverse shadow price analysis

In Vietnam, 0.70 m3 of water consumption equated
to US$1 hidden Water-Use related NCC, while in Spain,
0.26 m3 of water led to the same NCC, driven by higher
industrial water tariffs and baseline water stress in Spain.

2. Reduction in water-use NCC

The overall net water consumption intensity (m3/tonne
of soluble coffee) reduced 14% from 21 m3 per metric tonne
to 18 m3 per tonne, and the overall water-use NCCs per
tonne reduced 11%. Vietnam achieved a 19% reduction
in water-use NCC, with a 24% decrease in its net water
consumption intensity. Whereas the Spain facility
maintained similar levels of absolute water-use related
NCC (US$) and rose 5% in intensity terms.

1. No or insignificant water usage noted in LUC, pesticide use, crop residue management, farm machinery and manure management.
2. The embodied water used in fertiliser production, pesticide production and electricity generation are not included in this analysis. The three FGs in India
are identified as high-water risk, and the two FGs in Mexico as low-medium risk, as per data gathered from WRI Aqueduct.
3. The wastewater is treated by Café Outspan Vietnam Limited (COVL) and then is sent to a third-party who is responsible for finally treating it to meet
the local compliance regulations.
4. The Spain facility (SEDA Outspan Palencia) does physical treatments such as solids removal, homogenization, and pH correction, and the rest of the treatment
is outsourced to a government authorised company.

Olam Group Limited Annual Report 2023 145

Integrated Impact Statement

Natural Capital Impact Statement for rice

operations in Thailand
Impact valuation (added/ Value to society (S$ millions) Intensity of value to society
deducted) for the financial (S$/tonne of rice)*
years 2021, 2022 and 2023
2021 2022 2023 SRP Non-SRP Non-SRP
farmers: farmers: farmers:
Northeast Northeast Central
From agriculture
GHG emissions
Production of inputs used (7.16) (8.11) (7.24) (8.68) (12.60) (20.15)
Rice cultivation (92.34) (104.87) (94.65) (334.85) (334.85) (218.17)
Fuel use (0.64) (0.73) (0.66) (3.45) (3.45) (1.24)
Fertiliser use (12.13) (13.75) (12.33) (24.10) (37.56) (30.21)
Pesticide use (0.06) (0.07) (0.06) (0.02) (0.10) (0.17)
Harvesting (1.64) (1.86) (1.68) (5.88) (5.88) (3.89)
Crop residue management (2.83) (3.19) (2.83) 0.00 (1.43) (8.80)
Water use
Rainwater (714.80) (811.27) (730.83) (2,300.50) (2,300.50) (1,759.09)
Irrigation water (1,926.70) (2,175.96) (1,930.28) 0.00 0.00 (6,236.79)
Water pollution
Fertiliser use (41.80) (46.93) (42.02) (74.05) (115.37) (106.65)
Pesticide use (0.45) (0.51) (0.45) (0.24) (1.06) (1.20)
Air pollution
Crop residue management (787.51) (882.97) (786.63) 0.00 (2,047.57) (2,039.80)
Pesticide use (0.04) (0.04) (0.04) (0.02) (0.09) (0.10)
Soil pollution
Pesticide use (0.06) (0.06) (0.06) (0.03) (0.13) (0.15)
From processing
GHG emissions
Energy consumption (0.28) (0.29) (0.35)
Waste management (0.01) (0.01) (0.01)
From transportation
GHG emissions
Energy consumption (9.98) (11.42) (9.97)
Natural Capital profit/(loss) (3,598.43) (4,062.04) (3,620.08)

* Intensity of value to society is calculated from the average of 2021 to 2023.

146 olamgroup.com
 Strategic report

As part of the impact valuation exercise, the impact To be certified under SRP, rice crop residues must not be
pathways for the three key agricultural activities of fertiliser burnt by farmers. Instead, rice residues are put to alternative
use, pesticide use and burning of rice residues have been uses such as livestock feed. As such, the societal costs of air
assessed. The potential outcomes of fertiliser use include pollution due to burning of crop residues are eliminated.
GHG emissions and leakage of fertilisers into freshwater
The total reduction in Natural Capital impact from the above
sources leading to eutrophication. Pesticides can
interventions is estimated to be S$2,100 per metric tonne of
contaminate soil and water and emit hazardous air
rice. This amounts to a reduction in total Natural Capital
pollutants. The burning of rice residues, which farmers
impact of about S$8.5 million for about 4,000 metric tonnes
in Thailand commonly practice as a convenient and cost-
of rice purchased in 2023 from farmers trained under SRP.
efficient way to accelerate production cycles, contributes
Olam intends to scale up the SRP training programme in
to air pollution and GHG emissions. Air, water and soil
Thailand and train 27,000 additional farmers by 2026.
pollution have negative impacts on human health and
natural ecosystems. Accumulation of GHG emissions in the The societal cost of water use is almost 3.5 times higher in
atmosphere leads to climate change which has impacts such the Central Plains compared to the Northeast of Thailand
as infrastructure damage due to extreme weather events, due to higher water stress. To reduce water use and methane
greater morbidity and mortality. emissions from the traditional continuously flooded rice
farming method, Olam is co-financing a five-year Thai Rice
Recognising the potential environmental impacts of fertiliser
Green Climate Fund (GCF) project1 which is expected to start
and pesticide use as well as the burning of rice residues, as
in 2024 in the Central Plains and benefit more than 250,000
part of the SRP-registered training programme, Olam
smallholder farmers.
provides training to farmers with the objective of changing
agricultural practices to reduce synthetic fertiliser and In the processing operations, while energy consumption
pesticide use on farms, and eliminate the burning of crop increased due to increase in rice production volumes over the
residues. Since 2018, more than 23,000 farmers in Northeast years, GHG emissions per metric tonne of rice produced
Thailand have been trained under the SRP programme. Since arising from energy consumption were reduced by 21% in
2022, Olam has steadily increased its purchase of rice from 2023. The decrease in GHG emission intensity is owing to the
farmers trained under the SRP programme. increase in operational efficiency due to improved production
planning.
Under the SRP programme, rice farmers in Thailand were
trained on timely applications of fertilisers and at optimum
rates based on calendarised crop cycles. In addition, farmers
were trained on methods to create customised fertiliser
formulations with specific proportions of nitrogen (N),
phosphorus (P) and potassium (K) nutrients based on the
needs of the crops and soil sample results, instead of
pre-blended fertilisers typically used by farmers. As a result
of timely and targeted fertilisation application methods, the
average annual societal costs of water pollution and GHG
emissions per metric tonne of rice due to fertiliser use were
estimated to be 36% lower for farmers trained under SRP
than conventional farmers in the region.
To reduce chemical pesticide use, farmers are trained on
integrated pest management (IPM), an ecosystem
management approach to deter pests while minimising
hazards to humans, animals, plants and the environment.
IPM combines preventive and curative pest control methods
including balanced nutrient application, mechanical control
(e.g. hand weeding), and use of biological control agents in
place of chemicals. Olam also ensures that farmers use
protective equipment at the time of pesticide application.
Per metric tonne of rice, average annual societal costs of air,
water and soil pollution, and GHG emissions due to pesticide
use were estimated to be 77% lower for farmers trained under
SRP than conventional farmers in the region.

1. Green Climate Fund to invest 38 million EUR to strengthen climate-smart rice farming in Thailand-Thai-German Cooperation (thai-german-cooperation.info).

Olam Group Limited Annual Report 2023 147

Integrated Impact Statement

Social Return on Investment (SROI)

of fertiliser use training programmes
in rice Vietnam and Thailand

The environmental and social impacts of Olam’s fertiliser The SROI was estimated by assessing the outcomes of the
use training programmes in Rice Vietnam and Thailand were fertiliser use training programme, i.e. positive impacts on the
assessed by estimating the Social Return on Investment environment as well as on livelihoods of farmers. Optimised
(SROI) of these programmes. SROI is a holistic value metric fertiliser use leads to a reduction in water pollution and
that enables 'decisions to take into account a broader definition GHG emissions as well as a reduction in farmers’ expense
of value than just financial impacts, where the effects on on fertilisers.
people and planets are valued and included in how we make
At the Reuters Events Sustainability Awards 2023, Olam’s
decisions, and where our activities can create the changes
sustainable rice initiative in Vietnam and Thailand was Highly
we need for a more sustainable planet and just society'1.
Commended in the Social Impact category2.
The SROI computed is 2.5:1, i.e. S$2.5 of social return on S$1
invested. In other words, 150% social return on investment.
The total number of rice farmers trained in Vietnam and
Thailand during 2018-2022 is about 35,000.

1. https://www.socialvalueint.org/guide-to-sroi
2. https://events.reutersevents.com/sustainable-business/responsible-business-awards/winners

148 olamgroup.com
 Strategic report

Social Return on Investment (SROI) Valuation Deadweight: A measure of the amount of outcome that
Approach notes and assumptions would have happened even if the activity had not taken
place, calculated as a percentage. The deadweight of 75%
SROI is a framework for measuring and accounting for a is estimated by comparing the year-on-year reduction in
much broader concept of value that is not currently captured fertiliser use across groups of farmers who had received the
in financial terms. SROI depicts how change is being created same number of years of training as at the end of each year.
by measuring social, environmental and economic outcomes By comparing fertiliser use in two consecutive years across
and uses monetary values to represent them. This enables farmers who received the same amount of training in each of
a ratio of benefits to costs to be calculated. those years (e.g. fertiliser use in 2022 by farmers who
We have computed the SROI using the Social Value received one year of training as of 2022 compared to fertiliser
International (SVI’s) Guide to SROI1. use in 2021 by farmers who also received one year of training
as of 2021), we are removing the impact of training; this
The Guide to SROI provides a clear framework for anyone year-on-year reduction in fertiliser use can be attributed to
interested in measuring, managing and accounting for social other factors (deadweight). For example, a downward
value or social impact. This Guide was originally written in 2009 year-on-year trend in fertiliser use can be seen from 2020
by the UK Cabinet Office. Updated in 2012 by Social Value to 2022 across farmers with one year of training, and
International (SVI), it is the result of consultation with practitioners, similarly, across farmers with two years of training and so
members, academics and others with an interest in social on.
and environmental value and impact measurement.
Displacement: Displacement is an assessment of how much
SROI = Present Value of Total Outcome ($)/Total of the outcome displaced other outcomes. Displacement is
Investments ($) not applicable as it is assumed that the outcomes of reduced
Where: fertiliser use are not displacing other outcomes such as an
increase in fertiliser use elsewhere as a result of the
Total Outcome ($) = Quantity x Proxy financial value* intervention.
x (1 - deadweight percent) x (1 - displacement percent)
x (1 - attribution percent) x (1 - drop-off percent) Attribution: Attribution per cent is not considered as the
* The proxy financial value is estimated using the Natural and Social Capital
results are attributed to all stakeholders who have partnered
Valuation Approach. on the select interventions, and impact is generated
collaboratively and collectively by all stakeholders that have
contributed monetarily.
Number of years of impact: We have assumed that the
impacts from fertiliser use training are seen in the same year
of the training and lasts for three years (including the year of
training), i.e. farmers may continue to use less fertiliser than
before the training for three years. This is derived by comparing
the annual fertiliser use among groups of farmers who have
been in the training programme between one to four years.
There is a downward trend in fertiliser use for groups of
farmers in their first to third year of training, after which
fertiliser use increases again for farmers in the fourth year.
Drop off: In future years, the amount of outcome is likely to
be less or, if the same, will be more likely to be influenced by
other factors, so attribution to the organisation is lower.
Drop-off is used to account for this and is only calculated for
outcomes that last more than one year. We have assumed
that the drop off is 33%, such that there is a linear decrease
in impact until the third year of training, and zero impact in
the fourth year of training.

1. https://www.socialvalueint.org/guide-to-sroi

Olam Group Limited Annual Report 2023 149

Integrated Impact Statement

Natural and Social Capital Valuation

Approach notes and assumptions
GHG emissions: Olam has applied a Social Cost of Carbon
(SCC) of US$90 per tCO2e1 to value the costs to society of
climate change impacts due to GHG emissions, measured
by a global GDP reduction.
Water use: The shadow price of water2, which accounts for
the value of ‘services’ provided by water to human health,
ecosystems, agriculture and domestic supply, is calculated
to be US$0.70/m3 and US$2.43/m3 for Northeast and Central
Plains Thailand respectively.
Air, water and soil pollution from fertiliser and pesticide
use: Olam has applied the environmental prices3 to account
for emissions of nitrogen (N) and phosphorus (P) emissions
to water (from fertiliser use) and emissions of pesticide
chemicals to air, water and soil (from pesticide use). As these
environmental prices are applicable to and derived from
studies conducted in European countries, there is a limitation
in applying these environmental prices to our context in
Thailand, since the damage costs of environmental pollution
can vary widely according to local circumstances. Olam will
continue to update its methodology as more appropriate
valuation data become available.
Air pollution from burning crop residues: Olam has
applied the total cost per tonne of rice husk or straw burned
of US$1,6614 (2015 figure, adjusted for inflation). There is
a limitation in the use of Cambodian values in the context
of Thailand as societal costs from air pollution can vary
according to local circumstances. Olam will continue to
update its methodology as more appropriate valuation
data become available.
Social impact of reduced fertiliser use for farmers:
The impact of reduced fertiliser use on farmers’ livelihoods
following the training programme has been assessed based
on the average fertiliser cost in each country, adjusted by
purchasing power parity.

Disclaimer: Olam’s Natural and Social Capital accounting analyses are not related to financial results or financial reporting. The analyses and insights are specific
to the selected operations and are based on the use of environmental economic estimates of non-monetary ecosystems, goods and services; they should not be used
outside the context of our analyses. All underlying methodologies are based on well-established databases and frameworks. However, as they depend on third-party
expert studies, all values are indicative estimations and are provided as ballpark estimates to inform debate in relation to the management and mitigation of Natural
and Social Capital impacts. Results from the Natural and Social Capital valuation analyses may be readjusted according to further methodological refinements.
1. We have used the mid-point of SCC recommended by Massachusetts Institute of Technology (Pindyck, R S. 2019, The social cost of carbon revisited).
2. We have used the shadow water pricing methodology from the Corporate Bonds Water Credit Risk Tool developed by GIZ/NCD/VfU (2015).
3. Environmental prices from CE Delft Environmental Prices Handbook EU28 Version (2015), corrected for inflation and purchase power parity.
4. https://teebweb.org/wp-content/uploads/2017/07/Trucost-Methodology-Report_TEEB-Rice-Study.pdf

150 olamgroup.com
 Strategic report

General information

This information is intended to help readers understand the basis of our financial reporting and analysis contained in this
Annual Report 2023.
For financial reporting purposes, the structure and segmentation of Olam Group’s operating groups and businesses are as
follows:

Operating groups Businesses Reporting segments Key performance metrics

ofi Cocoa, coffee, dairy, nuts, Global Sourcing Segment-level Volume, Revenue,
spices EBIT, Adjusted EBIT, EBIT per MT,
Ingredients & Solutions
Invested Capital (IC), EBIT/IC
Olam Agri Grains and oilseeds, freight, Food & Feed - Origination Segment-level Volume, Revenue,
edible oils, integrated feed & Merchandising EBIT, EBIT per MT, Invested
and proteins, rice, specialty Capital (IC), EBIT/IC
Food & Feed - Processing
grains and seeds, cotton,
& Value-Added
wood products, rubber, risk
management services Fibre, Agri-industrials
& Ag Services
Remaining Olam Nupo Ventures, Mindsprint De-prioritised/Exiting Assets Segment-level Volume, Revenue,
Group and Olam Global Holdco EBIT, Invested Capital (IC),
Continuing/Gestating
(De-prioritised assets, continuing EBIT/IC
Businesses (including Mindsprint)
businesses and gestating assets,
including Rusmolco, Olam Palm Incubating Businesses
Gabon, Packaged Foods, (Nupo Ventures)
ARISE P&L)
Consolidated Volume, Revenue, EBIT, Invested
Olam Group Capital (IC), EBIT/IC, ROIC,
ROE, FCF from Operations

Definitions of key financial metrics Exceptional Items: One-off, non-recurring items, including
negative goodwill and related transaction costs, gain/loss
Sales Volume: Sale of goods in metric tonne (MT) equivalent.
on sale of assets/business, gain/loss on buyback of bonds,
There are no associated volumes for freight, Risk
impairment loss, finance charges on pre-payment of loans
Management Solutions and Mindsprint.
and non-recurring business restructuring expenses. Tax
Revenue: Sale of goods and services Income: Includes sale expenses associated with these items are also presented
of scrap materials, commissions and claims income and fair as Exceptional Items.
value gain on investments held for trading. Negative goodwill,
EBITDA: Earnings Before Interest, Tax, Depreciation
gain on sale of assets and other non-recurring, exceptional
and Amortisation (EBITDA) which includes minority interest
items which are part of Other Income in the audited
and excludes Exceptional Items.
consolidated financial statements, are classified as
Exceptional Items. EBIT: Earnings Before Interest and Tax, excludes
Exceptional Items.
Cost of Sales: Cost of goods sold, shipping and logistics,
commissions and claims expenses and the net measurement Adjusted EBIT: Earnings Before Interest and Tax, excludes
of derivative assets. Exceptional Items, and adjusted for amortisation of
acquired intangibles.
Selling, General and Administrative Expenses: Employee
benefit costs, manufacturing overheads, travel expenses PAT: Net profit after tax.
and other direct expenses.
PATMI: PAT less minority interest.
Other Operating Expenses: Unrealised foreign exchange
Operational PATMI: PATMI excluding Exceptional Items.
gain/loss and other expenses.
Net changes in fair value of biological assets: Records
changes in the fair value of agricultural produce growing
on bearer plants and livestock.

Olam Group Limited Annual Report 2023 151

General Information

Total Assets: Except in the financial and performance Cautionary statement

highlights where total assets comprise non-current assets
This Annual Report may contain forward-looking statements.
and current assets in the balance sheet, Total assets
Words such as ‘expect’, ‘anticipate’, ‘intend’ or the negative
refers to net assets with the exclusion of borrowings and
use of these terms and other similar expressions of future
lease liabilities.
performance or results and their negatives are intended to
Invested Capital (IC): Excludes cash and bank balances, identify such forward-looking statements. These forward-
deferred tax assets/liabilities, provision for tax, fixed deposits looking statements are based upon current expectations and
and other current/non-current assets. assumptions regarding anticipated developments and other
factors affecting the Group. They are not historical facts, nor
EBIT/IC: EBIT on average invested capital based on
are they guarantees of future performance.
beginning and end-of-period invested capital.
Because these forward-looking statements involve risks and
Return on Equity: Excludes impact of capital securities
uncertainties, there are important factors that could cause
distribution on net income and capital securities on equity.
actual reports to differ materially from those expressed or
Operational Return on Equity: Excludes exceptional items implied by these forward-looking statements, including
and impact of capital securities distribution on net income, among others, competitive pricing and activity, demand
and capital securities on equity. levels for the products that we supply, cost variances, the
ability to maintain and manage key supplier and customer
Operational Earnings Per Share: Earnings excluding
relationships, supply chain sources, currency values, interest
exceptional items per ordinary share.
rates, the ability to integrate acquisitions and complete
Net Gearing: Ratio of Net Debt (gross debt less cash) to planned divestitures, physical risks, environmental risks, the
Equity (before fair value adjustment reserves). ability to manage regulatory, tax and legal matters and
resolve pending matters within current estimates, legislative,
Net Gearing (adjusted): Net gearing adjusted for readily
fiscal and regulatory developments, political, economic and
marketable inventories that are liquid, hedged and/or sold
social conditions in the geographic markets where the Group
forward, operating as near-cash assets on the balance
operates and new or changed priorities of the Company’s or
sheet, and secured receivables are supported by letters of
its subsidiaries’ Boards. Further details of potential risks and
credit or documents through banks.
uncertainties affecting the Group can be found in the Offer
Free Cash Flow to Firm (FCFF): Operating cash flow less Information Statement of the Group dated 30 June 2021 and
changes in working capital, cash taxes, capital expenditures the Group’s Circular to Shareholders dated 6 March 2023.
and investments.
These forward-looking statements speak only as of the date
Free Cash Flow to Equity (FCFE): FCFF less net interest paid. of this Annual Report. Except as required by any applicable
law or regulation, the Group expressly disclaims any
ROIC: Return (net operating profit after tax) on invested
obligation or undertaking to release publicly any updates
capital.
or revision to any forward-looking statements contained
Note herein to reflect any change in the Group’s expectations
Due to rounding, the numbers and percentages presented with regard thereto or any change in events, conditions
throughout the Strategic Report may not add up precisely to or circumstances on which any such statement is based.
the totals and percentages provided in the Financial Report.
Disclaimer
Certain sections of our 2023 Annual Report have been
audited. The sections that have been audited are set out
in the Independent Auditor’s report (pages 199 to 201),
and include pages 202 to 268 of the Financial report.
Readers should note that legislation in Singapore governing
the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions. Except
where you are a shareholder, this material is provided for
information only and is not intended to confer any legal
rights on you. This Annual Report does not constitute an
invitation to invest in the Company’s shares. Any decision
you make relying on this information is solely your responsibility.
The information given is as of the dates specified, is not
updated and any forward-looking statement is made subject
to the reservation specified in the following paragraph.

152 olamgroup.com
 Governance
report

Governance report
154 Governance at a glance
156 Meet the Board
162 Purposeful governance
170 Nomination and Remuneration
Committee
176 Board Risk Committee
178 Audit Committee
185 Capital and Investment
Committee
187 Corporate Responsibility and
Sustainability Committee
189 Managing stakeholder
relationships

Olam Group Limited Annual Report 2023 153

Governance at a glance

Governance at a glance

The Group continues to comply with the Principles of the 2018 Code of Corporate Governance
(the “Code”) and purposefully apply the Provisions of the CG Code in the governance
framework of the Group.

The Board, Board Committees and the Management play a key role in ensuring the Group
complies with the Code and, in the process, continues to be governed purposefully for the
benefit of all its stakeholders.

Olam Group Limited Board

as of 18 March 2024

Nomination and Audit and Risk Sustainability

Remuneration Committee (ARC) Committee (SC)
Committee (NRC) • Supports the Board in fulfilling its • Oversees environmental, social
• Oversees compensation oversight responsibilities in and governance-related risks
policies, performance reviews, statutory and other areas, faced by the Group.
leadership and management namely, systems of accounting • Formerly the Corporate
development, director and financial controls, internal Responsibility and Sustainability
appointments, succession audit and internal controls, Committee (CRSC) – renamed
planning and progress of Board external audit engagement, the Sustainability Committee as
diversity targets. independence, integrity of the of 1 January 2024.
Group’s financial statements Key highlight in FY2023
Key highlight in FY2023
and financial reporting process, Assessed the SC central function’s
Oversaw establishment of two legal and regulatory compliance,
independent boards for Olam organisational structure to ensure
policies and procedures and that all policies, procedures and
Agri and ofi, review Board and interested person transactions.
Board Committees succession goals already in place continue
• Following combination with to be reflected in the respective
and composition, consider key
Board Risk Committee on business strategies of the three
management compensation
1 January 2024, assists the Board operating groups, review the terms
framework in light of the
in carrying out its oversight role of reference, review compliance
Re-organisation.
for the Group’s risk management with the sustainability reporting
framework and policies. requirement and monitor
Key highlight in FY2023 employees’ safety and health.
Please refer to pages 170 to 175. Review the financial statements
and reporting process, regular
conduct of impairment review,
review of salient accounting Please refer to section on
matters, assessment of internal “Corporate Responsibility and
controls, review of Base Erosion Sustainability Committee” in pages
and Profit Shifting (BEPS) 2.0 187 and 188.
implementation and impact on
the Group, approval of internal
and external audit plan, and
conduct of country related
internal review.

Please refer to section on “Board

Risk Committee” and “Audit
Committee” in pages 176 to 184.

154 olamgroup.com
 Governance
report

Our Board

Board Committee Membership

Board Membership Board Committees Tenure (years)1

Lim Ah Doo Chairman Nomination and Remuneration Committee (Chair) 7

Independent
Non-executive

Sunny George Verghese Executive Sustainability Committee 27

Co-Founder and
Group CEO

Nihal Vijaya Devadas Independent Audit and Risk Committee 9

Non-executive
Kaviratne CBE Sustainability Committee (Chair)

Yap Chee Keong Independent Audit and Risk Committee (Chair) 8

Non-executive
Nomination and Remuneration Committee

Marie Elaine Teo Independent Audit and Risk Committee 8

Non-executive
Sustainability Committee

Shuji Kobayashi Non-executive Audit and Risk Committee 7 months

Nomination and Remuneration Committee

Nagi Adel Hamiyeh Non-executive 4

Ajai Puri (Dr) Independent Audit and Risk Committee 4

Non-executive
Sustainability Committee

Joerg Wolfgang Wolle (Dr) Independent Nomination and Remuneration Committee 4

Non-executive

Yuji Tsushima Non-executive Sustainability Committee Appointed on 4 March 2024

1. Since Olam International Limited prior to the Scheme of Arrangement and till 31 December 2023

Board changes during 2023 and up to 18 March 2024

During the year under review and up to 18 March 2024, the Board and Board Committees have undergone various changes.
The changes are listed below:
• Mr Shuji Kobayashi replaced Mr Kazuo Ito on the Audit Committee and Capital and Investment Committee. He was
concurrently appointed as member of Board Risk Committee.
• The Capital and Investment Committee was dissolved with effect from 1 January 2024.
• The Board Risk Committee and Audit Committee were merged to form the Audit and Risk Committee with effect from
1 January 2024.
• The Board Steering Committee was dissolved on 4 March 2024.
• Mr Yuji Tsushima replaced Mr Hideyuki Hori as Non-executive Director with effect from 4 March 2024. Mr Hideyuki Hori
relinquished his membership on the Nomination and Remuneration Committee.
• Mr Yuji Tsushima assumed membership on the Sustainability Committee.
• Mr Shuji Kobayashi assumed membership on the Nomination and Remuneration Committee.

Olam Group Limited Annual Report 2023 155

Board of Directors

Meet the Board

Lim Ah Doo (74) Sunny George Verghese (64)

Chairman, Non-executive and Independent Director Executive Director, Co-Founder and Group CEO
Date of Appointment as Chairman: Date of Appointment as Director:
15 March 2022 26 August 2021
Date of last re-election: Date of last re-election:
25 April 2022 25 April 2023
Date of next re-election: Academic and Professional Qualification:
25 April 2024 • Postgraduate Degree in Business Management, Indian Institute of Management,
Academic and Professional Qualification: Ahmedabad, India
• Advanced Management Program, Harvard Business School, USA
• Degree (Honours) in Engineering, Queen Mary College, University of London, UK
• Master in Business Administration, Cranfield School of Management, UK Present Directorship (Listed Company):
Present Directorship (Listed Company): • Nil
• GDS Holdings Ltd (Director) Principal Commitments:
• GP Industries Ltd (Director) • Champions 12.3 (Co-Chair)
• Singapore Technologies Engineering Ltd (Director) • The Business Commission to tackle Inequality (BCTI) (Co-Chair)
Principal Commitments: • Policy Advisory Council for the Australian Centre for International Agricultural
Research (ACIAR) (Member)
• U Mobile Sdn Bhd (Director)
• Climate Impact Exchange (CIX) (Observer, CIX International Advisory Council)
Other Principal Commitments including Directorships for the last 5 years (past): • SMI Agribusiness task force (Member)
• ARA Trust Management (Cache) Limited (formerly known as ARA-CWT Trust • World Business Council for Sustainable Development (WBCSD)’s Imperatives
Management (Cache) Limited – trustee manager of Cache Logistics Trust) Advisory Board (Co-Chair)
• Commissioner to the High-Level Commission on Carbon Pricing and • JOil (S) Pte. Ltd. (Chairman)
Competitiveness by World Bank Group • Singapore Management University Board of Trustee (Member)
• STT GDC Pte. Ltd. • Carbon Solutions Holdings Pte. Ltd. (Chairman & Non-Executive Director)
• Virtus HoldCo Limited • Carbon Solutions Platform Pte. Ltd. (Chairman & Non-Executive Director)
• Singapore Technologies Telemedia Pte. Ltd. • Carbon Solutions Services Pte. Ltd. (Chairman & Non-Executive Director)
• STT Communications Ltd. • Carbon Solutions Investments Pte. Ltd. (Chairman & Non-Executive Director)
• STT Global Data Centres India Private Limited • ofi Group Limited (Director)
• Olam International Limited • Olam Agri Holdings Limited (Director)
Experience and Exposure: • Olam Global Agri Pte. Ltd. (Director)
Mr Lim Ah Doo has over 40 years of broad and in-depth experience in banking • Caraway Pte. Ltd. (Director)
and commerce. In banking, his past working experience includes an 18-year Other Principal Commitments including Directorships for the last 5 years (past):
career at Morgan Grenfell (1977 to 1995), during which he held several key • Chairman of World Business Council for Sustainable Development (WBCSD)
positions, including that of Chairman of Morgan Grenfell (Asia) Limited and led • Member of Emerging Stronger Task Force (EST), Government of Singapore
several landmark transactions. In commerce, he held the top executive position • Human Capital Leadership Institute Pte Ltd (Chairman)
at a major global-leading resource-based group, and has been director of • Olam International Limited (Director)
several large-sized public and private companies in and outside of Singapore. Experience and Exposure:
Mr Lim was previously the President and subsequently the Non-executive
Mr Sunny George Verghese started his career with Unilever in India before joining the
Vice Chairman of RGE Pte. Ltd. (formerly known as RGM International Pte Ltd).
Kewalram Chanrai Group in 1989. Mr Verghese was a director of Olam International
Mr Lim also chaired the Capital and Investment Committee of Olam Group
Limited prior to the Scheme of Arrangement that was completed on 15 March 2022
Limited, before it was dissolved on 1 January 2024, with its role and
with Olam Group Limited taking over the listing entity status on SGX-ST from Olam
responsibilities subsumed by the Board. Mr Lim was a director of Olam
International Limited as part of the Group Re-organisation. He co-founded Olam
International Limited since 2016 prior to the Scheme of Arrangement that was
when he was mandated by Kewalram Chanrai Group (KC Group) to build an
completed on 15 March 2022 with Olam Group Limited taking over the listing
agricultural products business for the KC Group. He has also previously been Chair
entity status on SGX-ST from Olam International Limited as part of the Group
of CitySpring Infrastructure Management Pte. Ltd, a listed Business Trust in
re-organisation.
Singapore and was also a Commissioner of the Business & Sustainable Development
Commission (BSDC). Mr Verghese has also held the role of Chairman of International
Enterprise Singapore and served on the Board of Trustees of the National University
of Singapore. He has won several awards including ‘Outstanding Chief Executive’ at
the Singapore Business Awards in 2007, ‘Ernst & Young Entrepreneur of the Year’ for
Singapore in 2008 and ‘Best CEO of the Year 2011’ at the Singapore Corporate
Awards. He was awarded the Public Service Medal by the Government of the
Republic of Singapore in 2010.
Key to board committee membership
Audit Committee1
Board Steering Committee 1. With effect from 1 January 2024, the Board Risk Committee was merged with the
Corporate Responsibility and Sustainability Committee2 Audit Committee to form the Audit and Risk Committee.
Nomination and Remuneration Committee 2. With effect from 1 January 2024, the Corporate Responsibility and Sustainability
Committee was renamed the Sustainability Committee.
Committee Chairman
3. With effect from 1 January 2024, the Capital and Investment Committee
was dissolved.

156 olamgroup.com
 Governance
report

Nihal Vijaya Devadas Kaviratne CBE (80) Yap Chee Keong (63)

Non-executive and Independent Director Non-executive and Independent Director

Date of Appointment as Director: Date of Appointment as Director:
15 March 2022 15 March 2022
Date of last re-election: Date of last re-election:
25 April 2022 25 April 2023
Academic and Professional Qualification: Academic and Professional Qualification:
• Bachelor of Arts, Economics (Honours), Bombay University, India • Bachelor of Accountancy, National University of Singapore
• Advanced Management Program, Harvard Business School, USA • Fellow, Institute of Singapore Chartered Accountants and
• Advanced Executive Program, Kellogg School of Management, Certified Public Accounts, Australia
Northwestern University, USA Present Directorship (Listed Company):
Principal Commitments: • Seatrium Limited (formerly known as Sembcorp Marine Ltd) (Deputy Chair)
• Caraway Pte. Ltd. (Chair) • Sembcorp Industries Ltd (Director)
• Bain & Company (Senior Advisor for South East Asia) • Shangri-La Asia Limited (Director)
• UK Government’s Department for International Development (DFID) Private Sector Principal Commitments:
Portfolio Advisory Committee (Member)
• Singapore Life Holdings Pte. Ltd. (formerly known as Aviva Singlife Holdings
• McKinsey & Company, Inc. (Member of the Resilience Advisory Council)
Pte. Ltd.) (Director)
• SATS Ltd. (Chairman of the Advisory Panel for Indonesia)
• Singapore Life Ltd (formerly known as Aviva Ltd) (Director)
• Indian Pediatric Hematology Oncology Group (Member of the Advisory Board)
• Professional Investment Advisory Services Pte Ltd (Chairman)
• Hematology Cancer Consortium (HCC) of India (Member of the Advisory Board)
• Ensign Infosecurity Pte Ltd (Director)
• SMX (Security Matters) PLC (Member of the Advisory Board)
• PIL Pte. Ltd. (Director)
Other Principal Commitments including Directorships for the last 5 years (past): • Pacific International Lines (Private) Limited (Director)
• GlaxoSmithKline Pharmaceuticals Ltd, India • PIL Marine Pte. Ltd. (Director)
• DBS Group Holdings Ltd • PIL Enterprises Pte. Ltd. (Director)
• DBS Bank Ltd • The Assembly of Christians of Singapore Ltd (Director)
• DBS Foundation Ltd Other Principal Commitments including Directorships for the last 5 years (past):
• Olam International Limited
• Maxeon Solar Technologies Ltd
• Bain & Company, Indonesia
• Certis CISCO Security Pte Ltd
• StarHub Ltd
• Citibank Singapore Ltd
Experience and Exposure: • Olam International Limited
Mr Nihal Kaviratne CBE brings with him extensive organisational, business, • Bayberry Limited
management, strategic planning, and customer-based experience and knowledge. • MediaCorp Pte Ltd
During a 40-year career with the Unilever Group, Mr Kaviratne held various • Singlife Financial Pte. Ltd. (formerly known as Singapore Life Pte. Ltd.)
senior-level management positions in sales, marketing, brand and strategic planning (Liquidated)
and development. Before his retirement from Unilever in 2005, he was Chairman/ Experience and Exposure:
CEO across Asia, Europe and Latin America. Mr Kaviratne was cited in HM Queen
Over the course of his career, Mr Yap Chee Keong has held a number of high-level
Elizabeth II’s 2004 New Year’s Honours List in the UK and was made the Commander
management positions, including Executive Director of The Straits Trading Company
of the Order of the British Empire (CBE) for services to UK business interests and to
Limited and Chief Financial Officer of Singapore Power Limited. Mr Yap has also held
sustainable development in Indonesia. He was one of “25 leaders at the forefront of
various senior roles at a number of multinational and listed companies. He has
change” chosen by Business Week in 2002 for the Stars of Asia Award and, in its
previously been a board member of the Accounting and Corporate Regulatory
year-end 2010 issue, Forbes India listed him as one of the “5 top names to have on
Authority, a member of the Public Accountants Oversight Committee, part of the
your Board”. He also received an award for driving “Business Excellence” at the
MAS/SGX/ACRA Work Group that reviewed the Guidebook for Audit Committees in
World Business Conclave 2016 in Hong Kong. Mr Kaviratne was a director of Olam
Singapore, and also the MAS/SGX/ACRA/SID Review Panel that developed a Guide
International Limited prior to the Scheme of Arrangement that was completed on
for Board Risk Committees in Singapore. Prior to the merger of the Board Risk
15 March 2022 with Olam Group Limited taking over the listing entity status on
Committee with the Audit Committee to form the Audit and Risk Committee, Mr Yap
SGX-ST from Olam International Limited as part of the Group re-organisation.
was a member of the Board Risk Committee. He was also a director of Olam
International Limited prior to the Scheme of Arrangement that was completed on
15 March 2022, with Olam Group Limited taking over the listing entity status on
SGX-ST from Olam International Limited as part of the Group re-organisation.

Olam Group Limited Annual Report 2023 157

Board of Directors

Marie Elaine Teo (57) Shuji Kobayashi (55)

Non-executive and Independent Director Non-executive Director

Date of Appointment as Director: Date of Appointment as Director:
15 March 2022 5 May 2023
Date of last re-election: Date of next re-election:
25 April 2023 25 April 2024
Academic and Professional Qualification: Academic and Professional Qualification:
• Bachelor of Arts (Honours) in Experimental Psychology, Oxford University, UK • Bachelor of Economics, West Virginia University, Morgantown, USA
• MBA, INSEAD • Advanced Management Program, Wharton Business School, University of
Present Directorship (Listed Company): Pennsylvania, Philadelphia, USA
• Monde Nissin Corporation (Director) Present Directorship (Listed Company):
Principal Commitments: • Nil
• ICHX Tech Pte. Ltd. (Director) Principal Commitments:
• Mapletree Investments Pte. Ltd. (Director) • Mitsubishi Corporation (Senior Vice President, General Manager, Food Industry
• Tantallon Capital Advisors (Senior Advisor) Group CEO Office)
• The TENG Company Ltd. (Chair) • Mitsubishi Corporation Life Sciences Limited (Director)
• Capital International Fund (Director) Other Principal Commitments including Directorships for the last 5 years (past):
• Tsao Foundation (Director)
• MC Agri Alliance Ltd.
• Duke-NUS Medical School (Board Member)
• Nosan Corporation
Other Principal Commitments including Directorships for the last 5 years (past): • MC Life Sciences Holdings Limited
• Caregivers Alliance Ltd. • PT. Kaneka Foods Indonesia
• CIMB Group Holdings Berhad (International Advisory Panel) • Agrex do Brasil S.A.
• Olam International Limited Experience and Exposure:
• Mapletree Oakwood Holdings Pte. Ltd.
Mr Shuji Kobayashi is currently the Senior Vice President of Mitsubishi Corporation
• G.K. Goh Holdings Limited
(MC), a conglomerate listed on the Tokyo Stock Exchange with a JPY 13 trillion
Experience and Exposure: market capitalisation, over 1,300 subsidiaries world-wide and 79,000+ employees on
Ms Marie Elaine Teo brings extensive investment experience across a broad a consolidated basis. Mr Kobayashi has over 20 years’ experience in the Food &
range of industries and markets to bear in assessing opportunities and Agriculture industry during which he has held managerial roles at multiple Food &
challenges in the future. She has over 20 years of investment experience, Agriculture companies worldwide, including the USA, Brazil, Australia, Indonesia,
primarily with Capital Group companies where she focused on Asian banks and China, Singapore, and Japan. In his current role, Mr Kobayashi is the Head of Food
global emerging markets, both as an analyst and as an investment manager. Industry Group CEO Office and oversees the strategy and key investments of the
Ms Teo was formerly the Chairman of Capital International Research, Inc. and Food Industry portfolio, which includes Livestock, Meat & Dairy Products, Global
Managing Director of Capital International Inc., Asia. Prior to the merger of the Fast Moving Consumer Goods, Food Resources, Produce & Marine Products and
Board Risk Committee with the Audit Committee to form the Audit and Risk Food Sciences. Prior to his current role, Mr Kobayashi was the Division Chief
Committee, Ms Teo chaired the Board Risk Committee. She was also a director Operating Officer (COO), Food Resources Division, overseeing MC’s global food
of Olam International Limited prior to the Scheme of Arrangement that was ingredients origination and merchandising operations, including corn, wheat,
completed on 15 March 2022 with Olam Group Limited taking over the listing soybean, cocoa and coffee, and the manufacturing of products, such as animal
entity status on SGX-ST from Olam International Limited as part of the feed, wheat flour and sugar. During his executive management career at MC,
Group re-organisation. Mr Kobayashi previously served in the Corporate Strategy & Planning Department,
where he was responsible for overarching strategic planning and generated multiple
beneficial opportunities beyond MC’s traditional business boundaries. Prior to the
merger of the Board Risk Committee with the Audit Committee to form the Audit and
Board Risk Committee, Mr Kobayashi was a member of both the Board Risk
Committee and the Audit Committee. Mr Kobayashi was also formerly a member of
the Capital and Investment Committee before it was dissolved on 1 January 2024.

Key to board committee membership

Audit Committee1
Board Steering Committee 1. With effect from 1 January 2024, the Board Risk Committee was merged with the
Corporate Responsibility and Sustainability Committee2 Audit Committee to form the Audit and Risk Committee.
Nomination and Remuneration Committee 2. With effect from 1 January 2024, the Corporate Responsibility and Sustainability
Committee was renamed the Sustainability Committee.
Committee Chairman
3. With effect from 1 January 2024, the Capital and Investment Committee
was dissolved.

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Joerg Wolfgang Wolle (Dr) (66) Ajai Puri (Dr) (70)

Non-executive and Independent Director Non-executive and Independent Director

Date of Appointment as Director: Date of Appointment as Director:
15 March 2022 15 March 2022
Date of last re-election: Date of last re-election:
25 April 2022 25 April 2022
Date of next re-election: Date of next re-election:
25 April 2024 25 April 2024
Academic and Professional Qualification: Academic and Professional Qualification:
• PhD in Engineering “summa cum laude”, Technical University Chemnitz, Germany • MBA, Crummer Business School, Rollins College, USA
• Executive Development Program, IMD Lausanne, Switzerland • PhD (Food Science), University of Maryland, USA
• Stanford Executive Program, GSB Stanford University, Palo Alto, CA, USA Present Directorship (Listed Company):
Present Directorship (Listed Company): • Fresh Del Monte Produce Inc. (Director)
• Kuehne + Nagel International Ltd. (Chair) • IMI PLC (Director)
• KlingeInberg AG (Chair) • Britannia Industries Ltd. (Director)
Principal Commitments: Principal Commitments:
• Kuehne Holding Ltd. (Director) • Califa Farms LP (Director)
• Kuehne Foundation (Member, Board of Trustees) Other Principal Commitments including Directorships for the last 5 years (past):
Other Principal Commitments including Directorships for the last 5 years (past): • Olam International Limited
• Olam International Limited • Firmenich SA
Experience and Exposure: • Tate and Lyle PLC
• Global Alliance for Improved Nutrition (G.A.I.N.)
Appointed CEO of Siber Hegner Ltd. in 2000, Dr Joerg Wolle was instrumental in the
130-year-old Asian-focused trading company’s rapid turnaround. He led the Experience and Exposure:
transformation of the company into the leading business services and distribution Dr Ajai Puri brings more than three decades of global food and agriculture industry
group in the ASEAN region with more than 33,000 specialised staff following its experience. His wide-ranging expertise spans the fields of innovation, science and
merger with two other Swiss-based Asia-focused distribution companies. During his technology, supply chain development, product integrity and consumer marketing.
tenure as CEO, sales and profits grew three- and six-fold respectively and the From 1981 to 2003, Dr Puri worked at Minute Maid (part of The Coca-Cola
company was listed on the Zurich Stock Exchange. Between 2002 and 2017, he was Company) where he held a variety of roles in areas such as research and
President and CEO of DKSH Holding Ltd., becoming its chairman in 2017, a position development, marketing and general management. On leaving Coca-Cola in 2003,
he held until 2019. Dr Wolle was a member of the Supervisory Board of Louis Dreyfus he held the position of Senior Vice President – Science and Technology for the
Company B.V. (2014 to 2018) and a member of the Board of Directors of UBS Ltd company’s juice business in North America. Between 2003 and 2007, Dr Puri was
(2006 to 2009) and DietheIm Keller Holding Ltd. (2004 to 2019). Dr Wolle is Executive Board Member and President – Research, Development and Product
currently Chairman of Kuehne + Nagel International Ltd and KlingeInberg AG. Integrity at Amsterdam-based Royal Numico N.V., a specialist nutrition company.
Dr Wolle was a director of Olam International Limited prior to the Scheme of He has previously held a number of non-executive roles at firms including Firmenich
Arrangement that was completed on 15 March 2022 with Olam Group Limited taking SA (2014-2023), Tate & Lyle PLC (2012-2021), Nutreco NV (2009-2015) and Barry
over the listing entity status on SGX-ST from Olam International Limited as part of Callebaut AG (2011-2014). Dr Puri is currently a Non-executive Director at Fresh Del
the Group re-organisation. Monte Produce Inc., IMI PLC, Britannia Industries Ltd, and privately held Califa
Farms LP. Dr Puri was formerly a member of the CIC before it was dissolved on
1 January 2024. Dr Puri was a director of Olam International Limited prior to the
Scheme of Arrangement that was completed on 15 March 2022 with Olam Group
Limited taking over the listing entity status on SGX-ST from Olam International
Limited as part of the Group re-organisation.

Olam Group Limited Annual Report 2023 159

Board of Directors

Nagi Adel Hamiyeh (55) Hideyuki Hori (56)

Non-executive Director Non-executive Director

Date of Appointment as Director: Date of Appointment as Director:
15 March 2022 16 May 2022
Date of last re-election: Date of cessation:
25 April 2022 4 March 2024
Academic and Professional Qualifications: Academic and Professional Qualification:
• Master of Science degree in Civil and Environmental Engineering, • Master of Science in Management, Graduate School of Business, Stanford
Massachusetts Institute of Technology, USA University, California, USA
• Bachelor of Science in Civil Engineering, University of Texas, USA • Faculty of Commerce (BA), Hitotsubashi University, Tokyo, Japan
Present Directorship (Listed Company): • Advanced Management Program, Executive Education, Harvard Business School,
Massachusetts, USA
• Sembcorp Industries Limited (Director)
• Seatrium Limited (formerly known as Sembcorp Marine Ltd) (Director) Present Directorship (Listed Company):
Principal Commitments: • Nil
• Temasek International (Head, Portfolio Development Group) Principal Commitments:
• ofi Group Limited (Director) • Mitsubishi Corporation (Executive Vice President, Group CEO, Food Industry
• Kyanite Investment Holdings Pte. Ltd. (Director) Group)
• Kyanite Investment Holdings (I) Pte. Ltd. (Director) Other Principal Commitments including Directorships for the last 5 years (past):
• EM TOPCO Limited (Director)
• Olam Agri Holdings Limited
Other Principal Commitments including Directorships for the last 5 years (past):
Experience and Exposure:
• Olam International Limited
Mr Hideyuki Hori has over 20 years of extensive experience in the Food & Agriculture
• Aquarius Healthcare Investments Pte. Ltd.
industry. He is currently the Executive Vice President, Group CEO of Food Industry
• Canopus Healthcare Investments Pte. Ltd.
Group, which is part of Mitsubishi Corporation (MC), a conglomerate listed on the
• Carinus Healthcare Investments Pte. Ltd.
Tokyo Stock Exchange with a JPY 13 trillion market capitalisation. In his current role,
• Gallienus Healthcare Investments Pte. Ltd.
Mr Hori heads the Food Industry Group and the Food Industry portfolio, which
• Imperius Healthcare Investments Pte. Ltd.
includes Livestock, Meat and Dairy Products, Global Fast Moving Consumer Goods,
• Lebanese International Finance Executives
Food Resources, Produce & Marine Products, and Food Sciences. Prior to his current
• Polaris Healthcare Investments Pte. Ltd.
position, and up until March 2024, Mr Hori was the Head of Food Industry Group
• Sheares Healthcare China Holdings Pte. Ltd.
CEO Office, the Chief Sustainability Officer and the Chief Compliance Officer.
• Sheares Healthcare Group Pte. Ltd.
He was the Head of Corporate Strategy and Planning Department at MC up until
• Sheares Healthcare Holdings Pte. Ltd.
March 2022, where he was in charge of the overarching corporate strategy and
• Sheares Healthcare International Holdings Pte. Ltd.
planning of MC’s 10 business groups, setting the group’s mid-term strategic
• Sheares Healthcare Management Pte. Ltd.
direction and objectives and playing a key role in the decision-making process for
• Sigma Healthcare Management Pte. Ltd.
large-scale investments along with the CEO & Executive Committee of MC. During
• Sirius Healthcare Investments Pte. Ltd.
his tenure, he has spearheaded various transformative investments and partnerships
• Tana Africa Capital Limited
with companies such as NTT (listed telecommunication company in Japan) and
• Tana Africa Investment Managers Limited
Eneco (Dutch Energy Supply Company). He has also held directorships at various
• Valerius Healthcare Investments Pte. Ltd.
Food & Agriculture companies worldwide, including the USA, Singapore, Australia,
• CapitaLand Group Pte. Ltd.
Brazil, and Japan, and was the Head of the Olam Strategic Alliance Department in
• CLA Real Estate Holdings Pte. Ltd.
MC when MC became a shareholder of Olam in 2015. Mr Hori was formerly a
• Startree Investments Pte Ltd
member of the Corporate Responsibility and Sustainability Committee before it was
• Olam Agri Holdings Limited
renamed the Sustainability Committee on 1 January 2024. Mr Hori was a director of
• Dream International BV
Olam International Limited prior to the Scheme of Arrangement that was completed
Experience and Exposure: on 15 March 2022 with Olam Group Limited taking over the listing entity status on
Mr Nagi Hamiyeh brings 30 years of experience in strategy, corporate finance, SGX-ST from Olam International Limited as part of the Group re-organisation.
mergers and acquisitions (M&A), growth equity, private equity and public
investing in multiple industries across the globe. During his career, he has
worked closely with companies undergoing consolidation or restructuring
processes, as well as with portfolio companies on value uplift opportunities.
He has also led the development of various greenfield platforms by way of M&A
and organic growth. Mr Hamiyeh is currently Head of Portfolio Development
Group at Temasek, a global investment company owned by the Government of
Singapore. Mr Hamiyeh joined Temasek in 2005 and over the course of his
career has led the firm’s Natural Resources, Industrials, Consumer and Real
Estate Investment teams. He has also been Temasek’s Joint Head of Investment
Group, Joint Head of Enterprise Development Group and Head of Africa and
Middle East, Australia, and New Zealand.

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Yuji Tsushima (54)

Non-executive Director
Date of Appointment as Director:
4 March 2024
Date of next re-election:
25 April 2024
Academic and Professional Qualification:
• Advanced Management Program, INSEAD Business School, Fontainebleau, France
• General Management Program, Harvard Business School, Massachusetts, USA
• B.A. Economics, The University of Tokyo, Japan
Present Directorship (Listed Company):
• Nil
Principal Commitments:
• Mitsubishi Corporation (Division Chief Operating Officer, Food Resources Division)
• MC Agri Alliance Ltd. (Director)
• MC Food Holdings Asia Pte. Ltd. (Managing Director)
• Premier Foods Holding Pte. Ltd. (Director)
• Lluvia Limited (Director)
• Aventine Limited (Director)
Other Principal Commitments including Directorships for the last 5 years (past):
• Kadoya Sesame Mills Incorporated
• Mitsubishi Corporation Life Sciences Limited
• Kewpie Malaysia Sdn. Bhd.
• Nissin Foods (U.S.A.) Co.,Inc.
• YSW & Co.,Ltd.
• Shandong Luling Fruit Juice Co., Ltd.
• Dan Kaffe (Malaysia) Sdn Bhd
• imperfect Inc.
• Indo Nissin Foods Private Ltd.
• Nissin Foods (Thailand) Co., Ltd
• PT. Nissin Foods Indonesia
• PT. MC Living Essentials Indonesia
• Oriental Coffee Alliance Sdn. Bhd.
• PT. Kaneka Foods Indonesia
• Ipanema Agricola S.A.
• Ipanema Comercial e Exportadora S.A.
• PT. MCdelica Food Indonesia
• PT. Kewpie Indonesia
• PT. Fast Retailing Indonesia
• Sesaco Corporation
• PT. Elleair International Manufacturing Indonesia
Experience and Exposure:
Mr Yuji Tsushima is currently the Division Chief Operating Officer (COO), Food
Resources Division of Mitsubishi Corporation (MC), a conglomerate listed on the
Tokyo Stock Exchange with JPY 13 trillion in market capitalisation. He joined MC in
1993 and has since held various managerial roles in MC in Tokyo as well as in its
overseas offices, including USA and Indonesia. With over 30 years of experience in
the global food and beverage industry, in his current role as Division COO,
Mr Tsushima oversees MC’s various food and beverage interests from agri-products
procurement, trading, processing to sales and marketing of consumer products.

Key to board committee membership

Audit Committee1
Board Steering Committee 1. With effect from 1 January 2024, the Board Risk Committee was merged with the
Corporate Responsibility and Sustainability Committee2 Audit Committee to form the Audit and Risk Committee.
Nomination and Remuneration Committee 2. With effect from 1 January 2024, the Corporate Responsibility and Sustainability
Committee was renamed the Sustainability Committee.
Committee Chairman
3. With effect from 1 January 2024, the Capital and Investment Committee
was dissolved.

Olam Group Limited Annual Report 2023 161

Purposeful governance

Purposeful governance

The Group’s corporate governance framework is centred • Overseeing and reviewing the Group’s operational and
around Singapore’s 2018 Code of Corporate Governance financial performance;
(the “Code”). As a business, we strive to comply with the • Overseeing the process and framework for evaluating the
Code and its 13 principles. This Corporate Governance adequacy of internal controls, including financial, operational,
section of the Annual Report sets out how the Group’s compliance and information technology controls, as well
practices and processes meet with the Code’s provisions, as risk management systems, and satisfying itself that these
or any other variation thereof. processes and frameworks are adequate and effective;
Throughout this Corporate Governance report, each of the • Monitoring the Group’s compliance with such laws and
Code’s principles has been highlighted in the relevant sections regulations as may be relevant to the business, including
to demonstrate how the Group’s practices and processes the monitoring of the Group being at risk of becoming
relate to and satisfy the requirements of the Code. In addition, subject to, or violating, any Sanctions Law;
it includes cross-references to other sections within the • Assuming responsibility for corporate governance;
broader document and, where applicable, it explains actions • Setting the Group’s values and standards, and ensuring
taken by the Group to address any differences there may be that obligations and responsibilities to all stakeholders are
between its practices and the Code. understood and met at all times;
The following sections detail how Olam satisfies Principles 1, • Reviewing the performance of Group CEO and Senior
2 and 3 of the Code. Management and the compensation framework for the
Board and Senior Management;
Principle 1 • Reviewing and overseeing Board renewals and
The company is headed by an effective Board which is the succession plans for the Group CEO and
collectively responsible and works with management for the Senior Management;
long-term success of the company. • Overseeing and considering corporate responsibility and
sustainability issues, policies, standards and strategy in
Composition of the Board the context of the Company’s activities which may have an
Comprised of individuals with a diverse and complementary impact on climate, environmental and social issues; and
range of international business experience, core competencies • Identifying key stakeholder groups and considering their
and nationalities, the Group’s Board is equipped to discharge views and concerns.
its statutory and fiduciary duties effectively, both on an
individual and a collective basis. The Board performs a key Material matters
oversight role to ensure the Group delivers for all its stakeholders, As part of its statutory and fiduciary duties, the Board is
provides strong leadership to the business as a whole and required to review and approve material matters. The Board
offers sound guidance to the Senior Management Team. communicates any decision made on the material matters
The Company recognises the importance of having clearly in writing to the Board Committees, the Executive
independent directors on the Board – during the year under Committee and Senior Management Team. These material
review, and as was the case the previous year, more than matters include:
50% of the Group’s Board of Directors was deemed to be • The Group’s Re-organisation into three operating groups
independent, including the Chair. All Directors, regardless of – Olam Food Ingredients (ofi), Olam Agri and the
whether they are deemed independent or non-independent, remaining businesses of Olam (the Re-organisation Plan);
however, are expected to exercise independent and objective • Acquisitions, divestments, and capital expenditure
judgement for the benefit of the Group. In line with this, key exceeding the authority limits established under an internal
assessment criteria in the annual Board, peer and Chair policy adopted by the Board, while delegating authority
performance evaluation exercise include the ability of Directors for transactions below those limits to Board Committees,
to discharge their fiduciary responsibilities and duties in the the Executive Committee and Senior Management;
best interests of the Company at all times; their understanding • Capital planning and raising, annual budgets, debt
of the Company’s business and operations; and their ability refinancing, debt limit and gearing and updates to the
to discuss issues objectively with one another. Strategic Plan and Re-organisation;
Key functions of the Board • Key policy decision-making process and control;
These include: • Changes to capital, dividend distribution, issuance and
share buybacks and changes to shares and other securities;
• Providing entrepreneurial leadership, setting strategic • Matters considered not in the ordinary course of the
objectives and ensuring that the Group has the financial Group’s business; and
and human resources it needs to deliver its objectives –
• Any matter which the Board considers significant enough
as part of this, the Board regularly reviews the execution
to require its direct attention or would be critical to the
and implementation of the Group’s Re-organisation
proper functioning of Olam or its business.
and Strategic Plans;

162 olamgroup.com
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Where the material matters require the approval of shareholders,

the Board may, if required under the Companies Act 1967 Improved Amended Board diversity
policy which for the first
and/or the Listing Manual of the Singapore Exchange performance for H2 2023 time includes set targets of
Securities Trading Limited (SGX-ST), appoint an independent against H2 2022.
valuer or independent financial adviser to evaluate the
fairness of the transaction price and offer. 25%
of women on the Board by
Board Committees The OGL Board is
2025, and
substantially
To ensure the effective discharge of its duties during the year
under review, the Board was assisted by the following six
Board Committees, all of which played an important role in independent. 30%
by 2030.
ensuring good corporate governance across the Company:
• Audit Committee (AC) Remain committed to Established
• Board Risk Committee (BRC)
•
•
Capital and Investment Committee (CIC)
Corporate Responsibility and Sustainability Committee
pursuing world-class
(CRSC) IPOs Boards
• Nomination and Remuneration Committee (NRC) of ofi and Olam Agri to for both ofi and Olam Agri.
• Board Steering Committee (BSC) unlock value for
shareholders.
As announced by the Company on 28 December 2023,
and with effect from 1 January 2024, the number of Board
Committees was rationalised and reduced. This follows the
Re-organisation Plan. The majority of the BSC’s membership is
dissolving of the Capital and Investment Committee with its
comprised of Non-executive Directors, including the Board
role and responsibilities now falling under the direct oversight
Chair who is independent – the Group CEO is also a member
of the Board. At the same time, the Board Risk Committee
of the Committee. The BSC, which is supported by the
has been combined with the Audit Committee and renamed
programme office, project teams and the advisory teams
the Audit and Risk Committee. In addition, the Corporate
typically meets once a month, provides the Board with updates
Responsibility & Sustainability Committee has been renamed
on decisions made within their delegated authority and
the Sustainability Committee.
recommendations for discussion and deliberation at the Board
Each Board Committee has clear written Terms of Reference, level. The BSC was dissolved on 4 March 2024 following the
setting out its role, authority, procedures and qualifications rationalisation of the number of Board Committees and its role.
for membership. From time to time, each Committee reviews
its Terms of Reference to ensure it reflects the evolving needs Board and Board Committee meetings
of the business, its operations and relevant laws and The Board meets at least five times a year with meetings,
regulations. During the year, each Board Committee including those of the Board Committees, scheduled at least
reviewed their respective Terms of Reference. No changes a year in advance. Additional meetings can also be
were made apart from the wording used in the CRSC’s Terms scheduled as and when they are deemed necessary.
of Reference to bring this more into line with terminology
During the year, 18 Board and 23 Board Committee meetings
used in widely followed benchmarks.
were held.
A summary of Board Committee memberships with the
In accordance with the Constitution of the Company,
names of the respective Committee members, the Terms of
provision is made for Board and Board Committee meetings
Reference, delegation of the Board’s authority to make
to be held electronically if required. A table showing the
decisions and overviews of each Board Committees’ activities
Committee memberships of the Directors and the number of
are provided in the various sections of this Annual Report.
Board, Board Committee and shareholders’ meetings held
Sub-committee(s) of the Board may also be formed to look at during the year, along with the attendance of Directors,
certain specific projects that the Company might be engaged in. is included in this report.
From time to time, the Board may establish Board committees
In terms of duration, meetings in which the Directors participated
on an ad hoc basis for specified periods to support
lasted between two and six hours. In addition to this, the
management, provide leadership and to ensure the interests and
Directors set aside time to read, review, comment and raise
views of the Company’s various stakeholders are represented.
queries on the materials provided ahead of each Board and
One such ad hoc Board Committee is the Board Steering Board Committee meeting. Directors are able to access
Committee (BSC), which was established in January 2020 Board and Board Committee papers securely and also
to oversee the implementation of the Group’s ongoing provide comments via an online platform/electronic device.

Olam Group Limited Annual Report 2023 163

Purposeful governance

Information on Board and Board Committee membership and attendance at Board, Board Committees and
shareholders’ meetings for the year ended 31 December 2023
Membership Board AC5 BRC6 BSC7 CIC8 CRSC9 NRC AGM EGM

Directors No. of Meetings Held 18 6 5 1 3 4 4 1 1

Lim Ah Doo Chairman – – –
Independent
Non-Executive 17/18 – – 1/1 3/3 – 4/4 1/1 1/1

Sunny George Verghese Executive – – –

18/18 – – 1/1 3/3 3/4 4/410 1/1 1/1
Nihal Vijaya Devadas Independent – – – –
Kaviratne CBE Non-Executive
18/18 6/6 – – – 4/4 – 1/1 1/1
Marie Elaine Teo Independent – – –
Non-Executive
16/18 6/6 5/5 – – 4/4 – 1/1 0/1
Yap Chee Keong Independent – – –
Non-Executive
18/18 6/6 5/5 – – – 4/4 1/1 1/1
Kazuo Ito 1
Non-Executive – – –
3/4 2/2 – 1/1 1/1 – – 1/1 1/1
Hideyuki Hori2 Non-Executive – – –
15/18 – 1/1 – – 4/4 4/4 1/1 1/1
Nagi Adel Hamiyeh Non-Executive – – – –
12/18 – – 1/1/ 1/3 – – 1/1 0/1
Ajai Puri (Dr) Independent – – –
Non-Executive
18/18 6/6 – – 3/3 3/4 – 1/1 1/1
Joerg Wolfgang Wolle Independent – – – – –
(Dr) Non-Executive
16/18 – – – – – 3/4 0/1 1/1
Shuji Kobayashi3 Non-Executive – – – – –
13/14 4/4 4/4 – 2/2 – – – –
Chan Wai Ching 4
Co-opted – – – – – – – –
Member
– – – – – – 2/4 – –
Notes:
1. Mr Kazuo Ito resigned as Non-Executive Director and relinquished his appointment on the AC, BSC and CIC with effect from 5 May 2023, and was replaced by
Mr Shuji Kobayashi on even date.
2. Mr Hideyuki Hori relinquished his membership on the BRC and was appointed as member of the BSC with effect from 5 May 2023.
3. Mr Shuji Kobayashi was appointed as Non-Executive Director on 5 May 2023 and was appointed as member of the AC, BRC and CIC.
4. Ms Chan Wai Ching is a co-opted member of the NRC. Ms Chan is not a Director of the Company.
5. AC was reconstituted as Audit and Risk Committee (ARC) following the merger of BRC with the AC on 1 January 2024.
6. BRC was merged with the AC to form ARC on 1 January 2024.
7. BSC was dissolved on 4 March 2024.
8. CIC was dissolved on 1 January 2024, with its roles and responsibilities under the direct oversight of the Board.
9. CRSC was renamed Sustainability Committee (SC) with effect from 1 January 2024.
10. Invited to be present at all NRC meetings.

Chairman
Member
Audit Committee
Board Risk Committee
Board Steering Committee
Capital and Investment Committee
Corporate Responsibility and Sustainability Committee
Nomination and Remuneration Committee
AGM Annual General Meeting
EGM Extraordinary General Meeting

164 olamgroup.com
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The Board, pursuant to the Company’s Constitution, and the Following the establishment of separate boards for ofi and
Board Committees under their respective Terms of Reference, Olam Agri, the Board continues to perform an oversight role
may make decisions by way of written resolution by circulation. for the two operating groups.
Outside of the regular schedule, the Board receives briefings Strategy
and updates on developments and issues concerning the Longer-term and strategic issues that impact the business
Group’s business and activities from the key executives and and the risks and opportunities faced both by the Group and
the Senior Management Team throughout the year. To enable the wider industry were considered by the Directors during
the Directors to continue to develop and maintain a good Board meetings held throughout 2023. The Board had an
understanding of the Group’s business and operations, away day to review and consider the strategy deliverables of
external professional advisers, such as Board evaluation the Group as well as to draw up and agree on the forward
consultants, financial advisers, legal advisers and climate risk looking strategy and capital needs of the Group.
assessment analysts, can be invited to present and participate
Diversity and inclusion
at the relevant Board and Board Committee meetings.
Fostering a diverse and inclusive culture across the Group is
In addition to the above, there is a significant level of key to ensuring the long-term success of the Group.
Director engagement and participation in Board affairs and Management has set up Global inclusion, diversity and
in governing the Company that cannot be quantified. equity councils were formed within the operating group(s)
Director engagement outside of the regular meetings to accelerate and strengthen actions to build a more
typically involves engaging, either on an individual or a equitable organisation. Principles, targets and actions were
collective basis, with other members of the Board, the Group established and monitored by the council. A Board Diversity
CEO and Group CFO, the Chair, CEO and CFO of each Policy was also adopted by the Board since 2020 and
operating group as well as other members of the Senior revised in 2022 with specific targets for diversity set out.
Management Team and external advisers and consultants to Progress made towards meeting the Group’s gender
review and discuss the business, global developments and diversity and associated targets including 25% of women
industry trends so that they are able to gain deeper insights representation on the Board by 2025 and 30% by 2030
into the Group’s operations and industry. was reviewed by the Board. The meeting of the targets run
in parallel with the execution of the Re-organisation Plan,
Time is also set aside by the Directors to receive updates from
which could therefore impact the timing of when these
individual business units and functions across the Company.
targets are due to be met.
Not only does this further the Directors’ understanding of
the Group’s business and operations but it also helps foster Sustainability
collaboration and engagement between the Board and key Sustainability has been vital to the Group, and is
executives and management. recognised by the Board as being a key enabler of the
Group’s Strategic Plan that is centred around delivering
Key highlights of the Board’s activities in 2023 for all stakeholders: our customers, our people, our suppliers,
Re-organisation our investors and the communities and environment in
The year under review saw further progress made regarding which we operate. Over the course of the year, the Board
the Group’s Re-organisation Plan. This is focused on separating regularly monitored and reviewed the Group’s sustainability
the business into three operating groups – ofi, Olam Agri goals and milestones.
and Remaining Olam Group (OGL) – to highlight the
Succession planning
inherent value embedded within the Group and allow each
Strategic succession planning plays a key role in ensuring
of the three operating groups to forge their own long-term
that the Board continues to have the necessary skillset,
independent growth pathways.
expertise and experience to provide leadership to the Group.
Key milestones achieved that required the oversight and With two Non-executive Directors set to retire from the Board
involvement of the Board and Board Committees during the in 2025 following the expiration of their respective nine-year
year include: service limits, work has commenced on sourcing candidates
with the required complementary skillsets, with a particular
• Progress the Re-organisation Plan by exploring and
focus on those who would at the same time contribute
announcing the plans to list Olam Agri on the mainboard
towards the Group’s gender diversity targets.
of the SGX with a concurrent listing on the Saudi Exchange
of the Kingdom of Saudi Arabia, making it the first of a Geopolitical/macroeconomic backdrop
global company in Saudi Arabia, subject to receiving all Geopolitical conflicts, high global inflation and interest rates,
requisite approvals, and the prevailing market conditions. commodity prices were all macroeconomic and geopolitical
• Establish the Olam Agri independent Board following the issues that were considered by the Board during the year
formation of the ofi independent Board along with how they impact the Group and its operations.
• Delivering on an improved performance for H2 2023
Induction and orientation of Directors
against H2 2022.
A comprehensive and structured onboarding process is in
place to enable new Directors to work and contribute to the
Board’s discussions more effectively. Newly appointed
Directors, both at Group and main subsidiary levels, undergo
a tailored induction programme, which includes briefings by
the Group CEO, CEO ofi, CEO Olam Agri, the Group CFO
and other Heads of functions including Human Resources,

Olam Group Limited Annual Report 2023 165

Purposeful governance

Comprehensive and Tailored Programme Internal Audit, Risk and Business Unit Heads. The onboarding
for Newly Appointed Directors process also includes (where possible) site visits to the
Group’s operations around the world to help deepen newly
appointed Directors’ understanding of the Group’s range of
business activities.
Clear terms and vital information provided
Step 1

Any newly appointed Director who does not have any prior
Newly appointed Directors are issued with: experience as a Director of a Singapore listed-company must
undergo the mandatory training conducted by an approved
• an appointment letter; and
provider prescribed by SGX-ST.
• an appointment pack which outlines their Board
and Board Committee membership details and Directors’ training and development
term of office, fees payable, fiduciary duty and Members of the Board are encouraged to pursue continual
legal obligations of a director, other vital professional development during the term of their
information regarding their appointment appointment. To assist with this, each year the Group
and on the Company. allocates a budget specifically for Directors’ training and
professional development. The Board Secretariat is available
to help the Directors with their ongoing professional
development. This can include arranging meetings/visits with
Orientation and induction Group business and country teams so that the Directors are
Step 2

The Board Secretariat facilitates the induction able to keep up to date with developments, and also to
programme for newly appointed Directors provide Board members with updates on changes to laws
comprising: and regulations, such as the Listing Rules of the SGX-ST,
the Code, the Companies Act and requirements on directors’
• initial engagement session with the Director; duties and responsibilities.
• customisation of the programme based on the
Director’s profile; Principle 2
• meeting with the Group CFO, Global Head The Board has an appropriate level of independence and
of Internal Audit, Global Head of diversity of thought and background in its composition to
Corporate Responsibility and Sustainability, enable it to make decisions in the best interests of
Business Heads; the company.
• scheduling briefings by various key trainers on
Board composition and size
matters of Board responsibilities; governance,
fiduciary duties, risk management, safety and Current Board membership is made up of individuals with
health, sustainability, financial reporting and extensive experience and expertise across a wide range of
the businesses of the Company; business areas. The combined experience and
complementary skillsets of the members, along with the size
• briefings by the Board Chairman and Chairs of
of the Board, fosters informed, robust and constructive
Board Committees;
discussions, both inside and outside of meetings, on matters
• an overview of the business, industry, trends
of policy, strategy, performance and also geopolitical and
and operations with the Group CEO, CEO-ofi;
macroeconomic issues. For more information on each Director
and
please refer to the Board of Directors section of this report.
• visits to the Group’s key operations.

Sector experience (%)

First time Director Training and

Step 3

Agri Experience 9
Sustainability Training
All newly appointed Directors are required Strategy & Transformation 15
to attend a Director Training as well as
Investment / M&A 15
sustainability training, prescribed under
the Listing Rules of the SGX-ST.
Digital / Information Technology 3

Human Resources / Organisation 12

Ongoing support provided by Corporate

Step 4

Risk Management 13
Secretarial Office
All newly appointed Directors are further assisted Corporate Responsibility / Sustainability 10
by the Board Secretariat to enable them to
Governance / Public Policy 10
appropriately discharge their statutory and
fiduciary duties.
Marketing / Sales 6

Audit / Accounting / Finance 6

Legal / Law

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International experience (%) Board independence Age

Africa 10

Asia 24

Middle East 7

Europe 21

North / South America 21 Independent 60%

50-59 years 40%
Non-independent 40%
Australia & New Zealand 17 60-69 years 30%

70 years and above 30%

The Board currently consists of 10 members, the same number making. During the year, the NRC continued to monitor the
as in 2022. Six of these are Independent Non-executive Board size, composition, tenure and re-election schedule of
Directors, including the Board Chair. Over half of the Board the Board.
is therefore comprised of Independent Non-executive Board diversity
Directors. The remaining four members include three
The Board believes that to deliver sustainable growth over
Non-independent Non-executive Directors and one Executive
the long term, it is necessary to foster a diverse and inclusive
Director – the Group CEO. culture across the Group. This includes at the Board level.
The NRC periodically reviews the composition, dynamics, Ensuring a blend of expertise and experience that covers
culture and size of the Board to ensure it remains an effective a diverse range of skills, industry experience, geographic
exposure, training, race, ethnicity, gender and nationality,
and high-performing forum for discussion and decision-

Highlights of the Board diversity policy

Gender Ethnic/National ESG

Diversity Diversity Expertise
Aim

Gender parity among Board of Diversity of our Board members to All Directors shall be aware of
Directors with intermediate targets of reflect our broad operational footprint fundamental ESG themes, principles
25% and 30% female representation across multiple regions and continents. and concerns, and of Olam Group’s
on the Board by 2025 and 2030 ESG framework and targets. At least
respectively. one Director shall have proven expertise
in environmental and social issues.
Progress

Currently there is one female Director The NRC, along with the Board, regularly The range of skills and experience on
on the Board. With the ongoing Group reviews the skills and expertise required the Board along with the management
re-organisation, the specific skillset and in relation to the effective implementation team provides the Company with the
experience sought as well as the of the Group’s strategy. Collectively, leadership to execute on the strategic
constraint of the available pool of the Board has the following experience plan, deliver on the results, identify
Directors, female representation on the and expertise: experience in public-listed opportunities and navigate through
Board is expected to remain at a level companies, Agri and working in Africa, rapid changes in regulations and
of 10-20% in the short to medium term. Asia, Middle East, Europe, North/ South complex challenges including all
However, the NRC, in reviewing Board America and Australia & New Zealand; matters relating to ESG.
composition and succession, has and expertise in Strategy & Transformation,
ensured that gender diversity is a Investment / M&A, Digital / Information
criteria in potential candidates’ Technology, Human Resources /
searches, both through internal Organisation, Risk Management,
sources, recommendations and search Governance / Public Policy, Marketing /
firms. This has been reflected in the Sales, Audit / Accounting / Finance. In
independent Boards of ofi and Olam terms of race and ethnicity, the Board
Agri, both of which have at least 40% includes ethnic Chinese, ethnic Indian,
female representation. East Asian and Caucasian.

Olam Group Limited Annual Report 2023 167

Purposeful governance

better equips the Board to understand the overall strategy of As is the case for all employees, Directors are expected to
the Company, provide leadership to the Group and also adhere to the Company’s Code of Conduct (CoC).
guidance to the Senior Management Team. Directors are therefore expected to disclose to the Board
any personal interests that could inappropriately influence
In line with the above, in 2022, the Board approved the
his or her judgement when acting on behalf of the Company.
amendments to the Board Diversity Policy (the “Policy”)
The details of any potential conflicts of interest should be
which takes into account areas such as gender and ethnicity
disclosed to the Board at the earliest possible opportunity.
in addition to skillsets and experience. The Board has
Should the Director wish to engage or continue with an
delegated to the NRC the role of overseeing the
activity that represents a potential conflict of interest,
implementation of the Policy, and the monitoring of progress
explicit written approval may be required as stipulated by
made towards achieving the targets set under the Policy.
the Company’s CoC.
Succession planning, in which the NRC plays a key role,
provides an opportunity to make meaningful progress Following the results of the NRC review, the Board has
towards achieving the targets set and, in the process, fully determined that, with the exception of the three Non-executive
capturing the benefits of having a diverse membership. Directors and the Executive Director, the remaining six
Directors are to be considered independent.
Independent Non-executive Directors
The Board recognises the important role Independent Ongoing renewal of the Board
Non-executive Directors play. By providing unbiased and A policy on the tenure of Directors has been in place since
independent views, advice and judgement, they help 2013 to promote the ongoing renewal of the membership of
safeguard the interests of all stakeholders: customers; the Board so that it continues to be an effective forum for
employees; suppliers; shareholders / other capital providers discussion and decision-making. This involves the gradual
and the communities the Group has a presence in. retirement of Independent Non-executive Directors, who have
Independent Non-executive Directors also play a key role in served on the Board for 9 years, at each subsequent AGM.
corporate accountability. In accordance with the above,
For all newly appointed Independent Non-executive
since 2013, the number of Executive Directors on the Board
Directors, the term of office is made up of two terms of
has been limited to two so that there is a greater proportion
three years each. An additional term of three years is also
of independent representation. Currently, only one Executive
available at the sole discretion of the Board. Regardless
Director, the Group CEO, sits on the Board.
of length of tenure, all Directors, including Executive,
On an annual basis, the NRC reviews the independence of Non-executive and Independent, are subject to an annual
each Director in line with the Code’s definition of an evaluation. Independent Non-executive Directors may be
Independent Director and guidance regarding any retired by the Board prior to the completion of their term of
relationships that may cause a Director to be deemed office after reviewing the recommendation of the NRC.
non-independent. A Director is considered to be independent
if he/she has no familial or commercial relationship with the Principle 3
Group or its officers, its related corporations and substantial There is a clear division of responsibilities between the
shareholders of the Company that could interfere, or be leadership of the Board and management, and no one
reasonably perceived to interfere, with the exercise of his or individual has unfettered powers of decision-making.
her independent business judgement in the best interests
of the Company.
Chair and Group CEO
The roles of Chair and Group CEO are separate and held by
The NRC’s determination takes into account the confirmation different individuals:
of independence that each Independent Director completes
annually. This requires each Independent Director to • Lim Ah Doo is Chair and Independent Non-executive
assess their independence robustly by examining the Director of the Company;
existence of any relationships or dealings that may • Sunny George Verghese is Group CEO.
compromise their independence. Pursuant to Rule 210(d)(iv)
Lim Ah Doo is not related to either the Group CEO or any
of the SGX-ST Listing Manual, any Director who has served
other members of the Senior Management Team.
on the Board for more than nine years will no longer be
Furthermore, a clear division of responsibility has been
considered independent.
established between the Chair and Group CEO to ensure an
appropriate balance of power and authority is maintained
within the Company:
• The Chair is responsible for the governance process and
for ensuring the effectiveness of the Board and Board
Committees; and
• The Group CEO heads the Senior Management Team and
has overall responsibility for the Company’s operations
and effectiveness. The Group CEO is accountable to the
Board for the Group’s business and financial performance
and for the decisions and actions taken.

168 olamgroup.com
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The Chair and Group CEO work closely together on matters Openness and transparency
due to be tabled at Board meetings as well as those matters The Board has adopted a policy of openness and
that arise from Board meetings. The Chair and Group CEO transparency in the conduct of the Company’s affairs while
also work together to ensure that, ahead of meetings, Board at the same time ensuring the commercial interests of the
members receive information that is accurate and clear. At Company are safeguarded.
Board meetings, the Chair allocates sufficient time to enable
the Board to hold robust and open discussions and to review The Company’s financial results are announced as
the matters tabled fully. Following Board meetings, the prescribed by the SGX-ST and media and analyst meetings
Chair, together with the Group CEO and the Company are held concurrently. Financial results and other price-
Secretary, monitors the translation of the Board’s decisions, sensitive information are disseminated to shareholders
requests and recommendations into executive action. via SGXNET to the SGX-ST, via press releases, on the
Company’s website (olamgroup.com) and through media
Over the course of the year, the Chair frequently discussed and analyst briefings.
with the Group CEO topics such as the progress of the
Re-organisation Plan, the Company’s strategic and The Group’s Investor Relations function also plays a key
succession plans, Group developments, business performance, role in keeping investors informed of material corporate
governance, compensation structure and policy. developments without prejudicing the business interests of
the Company.
The Chair also presides over Non-executive Directors’
discussions on an as and when required basis. Role of the Company Secretary
In addition, the Chair is responsible for constructive The Company Secretary supports the Board on corporate
communication and engagement with shareholders, both governance matters and monitors overall compliance with
during and outside of general meetings. In line with this, the laws and regulations that are relevant to and adhered to
the Chair may direct members of the Board to participate by the Group.
in briefings and meetings with other stakeholders to explain The Company Secretary also facilitates the effective
publicly available information that is deemed to be material. functioning of the Board and Board Committees in
Access to information and accountability accordance with their Terms of Reference and best practice.
In terms of Board / Board Committee meetings:
The Directors require access to accurate and clear
information to enable them to contribute effectively at Board • Meetings schedules – the Company Secretary schedules
meetings and to aid the decision-making process. The Chairs Board / Board Committee meetings at least a year
of the Board and Board Committees therefore meet with in advance;
Senior Management ahead of meetings to identify the salient • Pre-meetings – the Company Secretary works closely
matters and issues to be discussed, review the contents of with the Board Chair and the Chairs of the Board
the meeting materials and set the meeting agenda. Committees as well as with key executives of the
Company to manage the agenda and the timely delivery
The agenda for each Board and Board Committee meeting,
of the relevant materials to the Directors; and
along with all Board papers, related documents and
background materials, including any additional requests for • Post-meetings – the Company Secretary pursues and
clarification, details and information, are all made available manages follow-up actions and reports on matters that
to the Directors ahead of each meeting. arose during the meetings.

During Board / Board Committee meetings, Directors are The Company Secretary also assists the Board Chair with
briefed and updated on ongoing programmes and projects, the development of the Board and its processes including
including but not limited to the Re-organisation and Strategic evaluation, induction and training. In line with this, the
Plans, the performance of investments, the status of Company Secretary’s office works with the Board Chair and
divestments, the Annual Refinancing Plan, budgets and the newly appointed Directors to organise appointment letters
capital structure. Members of the management team are and information packs, as well as tailored induction plans
invited to attend Board / Board Committee meetings to for the new Directors.
provide additional insights into the matters tabled for Additionally, the Company Secretary has responsibility for
deliberation. When required, Global Heads of Business Units ensuring the Company complies with the Listing Rules of
(BU) are also invited to attend to update the Board on the SGX-ST and for facilitating the convening of general
platform-wide performance and plans. Where necessary, meetings and the Company’s interaction with shareholders.
the Directors and Board Committees may seek independent
professional advice, paid for by the Company. Boards today are required to provide leadership amidst the
breadth and complexities of the macro-economics and the
The Board has separate and independent access to the operating environment today. Directors may therefore
Senior Management Team and the Company Secretary at all require professional advice and input, at the Company’s
times. Over the course of the year under review, Non- expense, to make informed decisions on matters requiring
executive Directors met with Senior Management Team their decision. The Company Secretary facilitates such
independently to be briefed on various issues. requirement by Directors, either individually or collectively.
All Directors have separate and independent access to the
Company Secretary. The appointment and removal of the
Company Secretary is subject to the approval of the Board.

Olam Group Limited Annual Report 2023 169

Nomination and Remuneration Committee (NRC)

Nomination and Remuneration

Committee (NRC)

Members of the Committee

• Lim Ah Doo* (Chair)
• Yap Chee Keong*
• Hideyuki Hori (resigned on 4 March 2024)
• Joerg Wolfgang Wolle (Dr)*
• Chan Wai Ching**
• Shuji Kobayashi (appointed on 4 March 2024)
During the year, the NRC held 4 meetings.

 Meeting attendance shown on page 164.

* Independent Director
** Co-opted member

Purpose
The NRC assists the Board in its oversight of the overall
governance, which included the appointment and
reappointment of Directors, Board and management Through its oversight role, the Committee
succession planning, performance reviews, leadership and and its members help ensure that the Group
management development, and Board and management has a Board and senior management team
compensation policies. In discharging its responsibilities,
that continue to provide the business with the
the Committee considers all relevant matters including the
current businesses, each operating group’s Strategic Plan, leadership required to execute its strategy
the Re-organisation Plan and the critical issues and and in the process achieve its objectives.
challenges that the Group is expected to be confronted
with in the future.

Terms of Reference
The NRC is guided by its written Terms of Reference which Lim Ah Doo
sets out in detail the Committee’s scope of work and NRC Chair
responsibilities. In addition to the oversight roles listed above,
the Committee’s Terms of Reference covers Board evaluation, The Company is committed to recruiting and retaining a
Board Committee matters, the nominating process, diversity Board with the suitable mix of competencies, knowledge,
and inclusivity and disclosures. During the year, the skills and attributes that are necessary to provide leadership
Committee members reviewed the NRC’s Terms of Reference. to the Group as a whole. In line with this, the NRC assists the
No changes were deemed necessary. The Committee’s Terms Board in ensuring the integrity of its independence when
of Reference has been approved by the Board. discharging its corporate governance and oversight
responsibilities. Matters on which the NRC advises the full
Principle 4 Board include, but are not limited to:
The Board has a formal and transparent process for the
appointment and re-appointment of directors, taking into • Board – size, membership, organisation and function; and
account the need for progressive renewal of the Board. • Board Committees – structure, size and membership.

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New appointments, selection and At the Group’s 2024 AGM, Mr Nihal Vijaya Devadas Kaviratne
re-nomination of Directors CBE will retire from the Board having come to the end of the
nine-year tenure as prescribed by the Listing Rules of the
Having Directors with the right range of skills, knowledge and
SGX-ST for Independent Directors. There are no plans currently
experience is vital for the effective governance of the Group.
to replace Mr Kaviratne on the Board. As a result, the
The NRC assists the Board in ensuring that the Board is
membership of the Board will reduce to nine from ten
comprised of individuals whose background, skills, experience
previously. The NRC carried out a review of the composition
and personal qualities enhance the effectiveness of the
and size of the Board and Board Committees. The review
Board today and also meets the needs of tomorrow. The
concluded that nine Board members is an adequate size for
Committee’s responsibilities include determining the Board
the Board to discharge its responsibilities effectively.
and Board Committees composition, and sourcing, identifying
and evaluating suitable Board candidates. Succession planning
The NRC has responsibility for reviewing and proposing the The NRC is responsible for reviewing the succession plans that
selection, appointment and re-nomination of Directors – are in place both for the Board and for key positions within the
when considering the composition and functioning of the Group, including the Group CEO and Senior Management Team.
Board, the Committee takes into account the importance and With regards to Board succession planning and composition,
benefits of diversity. To assist it in this task, the NRC has the NRC considers a number of factors, including, but not limited
access to external search consultants and resources to help to, the nine-year tenure prescribed by the Listing Rules of the
identify potential candidates. Board members may also make SGX-ST for Independent Directors; the Group’s Re-organisation
recommendations to the NRC. Shortlisted candidates are then and Strategic Plans; the business environment; and ongoing
met by the Board Chairman prior to being put forward by the challenges and issues faced. The targets from the Board
NRC, for approval by the Board. Diversity Policy are also key factors considered for succession
Criteria considered by the NRC when identifying and planning and no candidate for Board membership is excluded
evaluating potential Board candidates include the following: on grounds of gender, race, ethnicity, and nationality.
• The scope and nature of the Company’s operations and The NRC seeks to maintain a list of suitable and qualified
business requirements; candidates for membership of the Board through
• Knowledge and experience in areas of value to the Group, recommendations by reputable third parties and organisations.
including but not limited to accounting or finance, banking, With two Independent Non-executive Directors set to retire from
business or management, investment, industry knowledge, the Board in 2025 following the expiration of their respective
supply chain, strategic planning, customer-based experience nine-year tenure, the NRC has commenced on sourcing
or knowledge, environment and sustainability, legal, candidates with the required complementary skillsets, with a
digital, retail, infrastructure and geographical exposure; particular focus on those who would at the same time contribute
• Aptitude or experience to understand fully the fiduciary towards the Board’s gender diversity targets. The Group uses
duties of a director and the governance processes of external partners to identify and screen potential candidates.
a publicly listed company; With the Group’s Re-organisation Plan ongoing, the NRC
• Independence of mind; performs an oversight role in relation to succession planning
• Competencies and how he/she could meet the needs of at the Company’s two operating groups – Olam Agri and ofi.
the Company and simultaneously complement the skillset The respective NRCs for each of the operating groups is
of other Board members; responsible for overseeing succession planning for their
• Experience and track record in multinational companies; respective operating groups. The Group NRC’s monitoring role
• Ability to commit time and effort to discharging his/her is in line with its remit to ensure both Olam Agri and ofi have
responsibilities as a director; the correct organisational structure and processes in place,
as well as the full suite of functionality.
• Reputation and integrity; and
• Diversity in gender and ethnic. Principle 5
The Board undertakes a formal annual assessment of its
Retirement and re-election
effectiveness as a whole, and that of each of its Board
All Directors submit themselves for retirement and re-election committees and individual directors.
at least once every three years. In accordance with Regulation
107 of the Constitution of the Company, one third of Directors Assessing the effectiveness of the Board
retire from office at the Company’s AGM every year. Retiring The Board has in place a set of criteria which is used to assess
Directors are eligible for re-election at the AGM. The Group the effectiveness of the Board as a whole. These criteria, which
CEO is also a Director of the Company and is therefore are based on the recommendations of the NRC, cover a total
subject to the same requirement to retire. Furthermore, the of 49 assessment areas and fall under 12 sections. They
Company’s Constitution also stipulates that newly appointed include, but are not limited to, the Board’s composition, its
Directors must submit themselves for re-election at the AGM leadership, processes, strategy and implementation, risk and
following their appointment (unless such an appointment was crisis management, effectiveness of Board Committees and
voted upon by shareholders at a general meeting). stakeholder management.
At the Group’s second AGM, which was held on 25 April 2023, Individual Directors, including the Board Chair, are assessed
three Directors – Ms Marie Elaine Teo, Mr Yap Chee Keong on an ‘exception’ basis on criteria such as individual
and Mr Sunny George Verghese – retired and were contribution, involvement, conduct of and at meetings,
subsequently re-elected pursuant to Regulation 107 of the execution of agreed matters, interaction with the Board,
Company’s Constitution. industry and functional expertise.

Olam Group Limited Annual Report 2023 171

Nomination and Remuneration Committee (NRC)

Each year, the NRC oversees an evaluation of the membership, Board Committee membership(s), Chairmanships
effectiveness of the Board. The evaluation, which is undertaken and attendance fees. Remuneration is benchmarked against
by an independent third party, takes a holistic view and peer companies.
considers both the Board’s strengths as well as any areas that
The existing framework governing remuneration, which was
can be improved. It also considers areas such as whether the
adopted by the Board on the recommendation of the NRC,
Board has spent sufficient time discussing strategic matters
seeks to provide an equitable and adequate remuneration for
during the year. The evaluation is a detailed process and once
Non-executive Directors, taking into account:
completed the NRC discusses the results, comments and any
recommendations made. The Committee then makes its own • The responsibilities and average amount of time spent by
recommendations for consideration by the Board. Directors at Board and Board Committee meetings;
During the year, Nasdaq Boardvantage Board evaluation • Their discussions beyond formal meetings and separate
platform was used to conduct an independent Board discussions with management, external advisors and
evaluation exercise. The end to end process was facilitated consultants; and
using the Nasdaq Boardvantage platform to ensure • The review of materials in the discharge of their responsibilities.
confidentiality and fairness in the collation of ratings and A table detailing fees payable to the Non-executive Directors of
feedback. The results of the exercise were reviewed by the the Company is set out on of this report. Fees are paid to Non-
NRC and tabled at the Board meeting for discussion. Areas of executive Directors in arrears on a quarterly basis for the current
weakness and opportunities were discussed; next steps were financial year following shareholder approval at the AGM.
agreed for monitoring by the NRC.
Directors’ fees paid in FY2023
Membership of other boards
The aggregate fees paid to the Non-executive Directors of the
When assessing the performance of Directors, the NRC considers Company for the financial year ended 31 December 2023
each Director’s board memberships and commitments outside amounted to S$2,384,667.07 (excluding fees paid to a Director
of the Company and whether sufficient time and attention for his/her directorship with a subsidiary of the Company and
has been given by the individual to the Group’s affairs. The NRC car-related benefits for Chairman). The overall level of fees
does not impose a limit on the number of board representations paid is lower than the sum of S$3,000,000 that was approved
a Director holds due to the Directors demonstrating their for payment as Directors’ fees during the year under review.
commitment and effectiveness in discharging their duties and Of the regular aggregate fees paid to Non-Executive Directors
responsibilities and also their avoiding actual or potential during the year, S$500,388 was paid out in the form of shares
conflicts of interest caused by serving on other boards. in the Company under the OG Share Grant Plan.
Key information regarding the members of the Board is A breakdown of the fees paid to the Company’s Non-executive
disclosed in the Board of Directors section of this report on Directors for the year ended 31 December 2023 is set out in
pages 156 to 161. These pages detail the Directors’ academic the following table. Details of the compensation of Directors
and professional qualifications, the Board Committees they for FY2023 and FY2022 are also provided in Note 32 of the
serve on, either as a member or as a Chair, the date of financial section within this report.
their first appointment as a Director, date of their last
FY2023
re-election/re-appointment, current directorships in other Name S$
listed companies, principal commitments and their experience
Non-Executive Directors
and exposure. Information relating to Directors’ shareholdings
and interests in Olam is disclosed in the Directors’ Statement Lim Ah Doo1 698,985.21
of the financials section of to this Report. Nihal Vijaya Devadas Kaviratne CBE 205,000.00
Yap Chee Keong 239,000.00
Principle 6 Marie Elaine Teo 229,700.00
The Board has a formal and transparent procedure for Kazuo Ito 68,192.32
developing policies on director and executive remuneration,
Hideyuki Hori 207,068.69
and for fixing the remuneration packages of individual
Nagi Hamiyeh 151,500.00
directors and key management personnel. No director is
involved in deciding his or her own remuneration. Joerg Wolfgang Wolle (Dr) 187,000.00
Ajai Puri (Dr) 264,000.00
Principle 7 Shuji Kobayashi 153,706.06
The level and structure of remuneration of the Board and key NRC Co-opted member
management personnel are appropriate and proportionate to Chan Wai Ching2 28,000.00
the sustained performance and value creation of the company,
Directorship on Subsidiary
taking into account the strategic objectives of the company.
Nihal Vijaya Devadas Kaviratne CBE3 75,000.00
Principle 8
The aforementioned fees paid out quarterly in arrears were based on the fees’
The company is transparent on its remuneration policies, framework set out on in this report. Details of the compensation of directors and
level and mix of remuneration, the procedure for setting key management personnel for FY2023 and FY2022 may be referred to in Note
remuneration, and the relationships between remuneration, 32 of the Financial Report.
performance and value creation. 1. The fees paid included fixed fee as Chairman (S$600,000), pro-rated fees as
Chairman of the Board Steering Committee (S$51,500) and related
attendance fee and car-related benefits (S$47,485.21).
Remuneration policy for Non-executive Directors 2. Co-opted member on the NRC. Ms Chan Wai Ching is not a director.
Remuneration for the Group’s Non-executive Directors is 3. Fees paid as Independent and Non-Executive Chairman of Caraway
comprised of a base fee that takes into account Board Pte. Ltd., a 75:25 joint venture subsidiary of the Company.

172 olamgroup.com
 Governance
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Proposed Directors’ fees for FY2024 Subject to shareholder approval at the AGM, it is intended
For the year ending 31 December 2024, aggregate Directors’ that the equity component of Non-executive Director
fees of up to S$2,700,000 have been recommended for remuneration is paid out after the issue of each full year’s
shareholder approval at the Company’s third AGM. This total financial results. The actual number of shares to be awarded
is based on the Directors’ fees framework and includes an to each Non-executive Director holding office at the time of
additional provision of approximately 30% for developments payment will be determined by reference to the volume
that may occur during the year ending 31 December 2024 weighted average price of Olam shares listed on the SGX-ST
that would be deemed over and above the normal course of over the 10 trading days following the date of the
business for the Directors during the year. Examples of announcement by the Company of its unaudited full year
developments that could fall under the provision include the financial statements for FY2024. The number of shares to be
appointment of new Directors, additional meetings of the awarded will be rounded down to the nearest hundred and
Board and Board Committees and Board offsites, any residual balance will be settled in cash.
the formation of ad-hoc and/or new Board Committees, and Non-executive Directors who receive equity in the Company
the co-opting of members to the Board Committees. as part of their total remuneration are expected to hold
Approximately 30% of the total remuneration of Non-executive Olam shares of a value equivalent to approximately one
Directors (excluding certain Non-executive Directors who, year’s basic retainer during their Board tenure. In the event
under their separate arrangements with their employers, a Non-executive Director leaves the Company prior to the
do not retain their Directors’ fees), will be payable in the acquisition or transfer of the shares, the Director’s fees due
form of equity in the Company. This is designed to align the will be paid in cash.
interests of Directors with those of shareholders. In line with Remuneration policy for Executive Directors
this, Non-executive Directors would receive approximately
and other key executives
70% of their total Director’s fees in cash with the remaining
balance received in the form of Olam Group shares. The Group’s guiding framework for remuneration policy for
key executive positions is centred around attracting,
Nature of appointment S$
motivating and retaining highly talented individuals.
Board of Directors
Under the guiding framework, not only is individual
Chairman (Fixed fee)1 600,000
performance rewarded but also the attainment of the
Base fee (Deputy Chairman) 130,000 Company’s strategic objectives. These are aligned with the
Base fee (Member) 70,000 interests of all the Group’s stakeholders and include both
Lead Independent Director 25,000 financial and non-financial objectives. For example,
Audit and Risk Committee sustainability has, for many years, formed part of all three
Sustainability Committee of the Group’s Key Performance Indicators (KPI) for key
Nomination and Remuneration Committee executives – financial, operations, strategic – reflecting how
value creation for the Group goes beyond just shareholders
Chairman’s fee 50,000
to cover all stakeholders, including the communities in which
Member’s fee 25,000 the Company operates in.
1. Chairman would be paid fixed fee, Chairman’s fees and attendance fees
for Board Steering Committee As well as Group and individual performance, the NRC takes
into account relevant comparative remuneration in the
Attendance fee Board Committee marketplace when reviewing compensation and therefore the
Home city meeting Committee endeavours to maintain an awareness of pay
< 4 hours round trip travel time 3,000 1,500 and practices at peer companies. To stay competitive in the
In-region meeting marketplace, the Company aims to benchmark executives’
Between 4 to 15 hours round trip compensation with that of similar performing companies.
travel time 5,000 2,500 The target is to remain in the top 25 percentile, taking into
Out-of-region meeting consideration the individual’s performance, qualifications
> 15 hours round trip travel time 10,000 5,000 and experience. In addition, the Company has adopted a
Conference call 600 400 performance-based remuneration system that is flexible and
responsive to the market. Where possible, any resulting
Odd hours 1,200 750
increase in pay following a peer group analysis will be linked
Attendance fee – Board Offsite
to actual performance.
Home city meeting
< 4 hours round trip travel time 6,000
In-region meeting
Between 4 to 15 hours round trip
travel time 10,000
Out-of-region meeting
> 15 hours round trip travel time 20,000

Olam Group Limited Annual Report 2023 173

Nomination and Remuneration Committee (NRC)

Remuneration structure Base salary

Total remuneration for Executive Directors and other key • The annual fixed component consists of the annual
executives currently has three components: basic salary and other fixed allowances.
• The base salary reflects the market worth of the
• An annual fixed cash component – base salary;
position but this may vary depending on responsibilities,
• A 60% short term cash incentive – bonus tied to the qualifications and the experience that the individual
Company’s and the individual’s performance; and brings to the role.
• A 40% deferred cash incentive – bonus tied to the
Company’s and the individual’s performance
As Executive Directors and key executives move higher up the Alignment with interests of shareholders
organisation, the proportion of the performance-related and other stakeholders
components of their remuneration increases. • Achieved by selecting appropriate performance
Factors considered when evaluating the performance of metrics for annual and long-term incentive plans to
Executive Directors and other key executives are detailed in support the implementation of the Group’s strategy
the diagram on the right, together with the key components and the ongoing generation of shareholder value.
of the total remuneration package.
Executive Directors are not entitled to either base fees or fees Performance-linked remuneration
for membership on Board Committees. • Performance is measured using a holistic and
Disclosure of Executive Director and balanced scorecard approach, which includes both
financial and non-financial metrics. Targets are
top key executive remuneration appropriately set at threshold, target, stretch and
For the year ended 31 December 2023, the Company had exceptional performance levels. Qualification and
four top key executives who are not Directors. Information experience are also considered.
on the compensation paid to all Directors and top key • Remuneration is appropriate and proportionate to
executives is summarily provided in Note 32 to the financial sustained performance and value creation. Care is
statements in the financial section of this report. The names, taken to ensure that the link between performance
amounts and breakdowns of the remuneration of individual and remuneration is clear.
directors have been disclosed in of this report.
In considering the disclosure of the remuneration of the
Executive Director and the top four key executives, the NRC
Performance incentive
has elected not to provide the names, amounts and
breakdown of the remuneration of key executives. The NRC • The annual performance incentive is tied to both the
opined that the information provided on the framework, Company’s and the individual executive’s
system and components of the remuneration would provide performance to support the Group’s strategy and
shareholders with a better understanding of the role played by the ongoing enhancement of shareholder value.
the NRC in ensuring that the remuneration paid is appropriate,
proportionate to sustained performance and value creation
and in line with the strategic objectives of the Company. The
NRC also considered the period of re-organisation that the Long-term incentive
Company is presently in and the transition in leadership team. • Long-term incentives reinforce the delivery of
The NRC is cognisant of the SGX-ST requirement for issuers to long-term growth and shareholder value to drive
disclose the exact amount and breakdown of remuneration an ownership culture and retain key talent.
paid to the CEO in the annual reports for financial years These help foster an ownership culture within the
ending on or after 31 December 2024. Group, retain key talent, support the long-term
growth of the business and drive shareholder value.
Remuneration band of the top key executives • Long-term incentives are based on the individual’s
for the year ended 31 December 2023 performance and the contribution made but are
subject to a performance-related claw-back if
Remuneration band No. of executives
long-term sustained performance targets are not met.
S$500,000 to S$1,000,000 1
• The long-term incentives utilised by the Company
S$1,000,000 to S$2,000,000 2 since the roll-out of the Re-organisation Plan was in
S$3,250,000 to S$3,500,000 1 the form of deferred cash incentive to be paid equally
across 4 years.
Remuneration of employees who are immediate
family members of a Director or the Group CEO
No employee of the Company and its subsidiaries whose Policy
remuneration exceeded S$100,000 during the year under • The Company contributes towards the Singapore
review was an immediate family member of a Director, Central Provident Fund where applicable to
the Group CEO, or a substantial shareholder of Olam. the individual.
Immediate family member is defined as a spouse, child,
adopted child, stepchild, brother, sister or parent.

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Level and mix of remuneration of Executive Director for the year ended 31 December 2023
Salary Variable or
(including employer performance related Shares held
Remuneration band provident fund) income/bonuses Benefits in kind Total in trust

S$8,000,000 to 8,250,000
Sunny George Verghese 15% 82% 3% 100% 2,528,4681

1. The trust was set up to satisfy the unvested RSA and that unvested shares of the Company under the RSA was fully issued and/or transferred by Olam
International Limited to the trustee prior to the Scheme of Arrangement to hold under the trust. These shares will be released by the trustee to Mr Sunny Verghese
in accordance with the original vesting schedule of the RSA, and subject to the same conditions for vesting as provided in the RSA and under the OSGP.

Re-organisation Project Incentive reviewed and approved by the NRC. The review will be based
A Project Incentive for identified senior employees of the on the criteria and parameters that have been previously
Group who have contributed substantially towards the approved by the NRC in respect of each liquidity event, save
Re-organisation Plan has previously been approved by the in limited circumstances where the NRC may make an earlier
NRC and the Board. The Project Incentive is in recognition for determination of any amount due to a relevant employee.
the additional work these individuals have undertaken in Payments made under the Project Incentive are generally
support of the Re-organisation Plan over and above their pegged to a percentage of the relevant employees’ annual
existing responsibilities during FY2019, FY2020 and FY2021. base salaries.
The Project Incentive is a cash incentive intended to Key activities of the NRC during the year
encourage focus, efforts and actions to execute the strategic
During the year under review, the NRC assisted with the
pathways approved by the Board.
appointment of Mr Shuji Kobayashi to the Board as a
Approximately 275 employees are in the Project Incentive Non-executive Director. Mr Shuji Kobayashi was nominated
pool, all of whom were employed within the Group as at by Mitsubishi Corporation (MC) to replace Mr Kazuo Ito as
31 December 2021 and following the re-organisation have Non-executive Director of the Company. The NRC reviewed
remained with either the Group or its subsidiaries. Any cash the experience, skillset, qualifications and the quality of
payments made as part of the Project Incentive would be MC’s proposed nomination and opined that the extensive
subject to continued employment requirements, save for experience of Mr Shuji Kobayashi gained from the various
limited exceptions in which the continued employment roles he has held during his career with MC complements the
requirements may not apply. mix of expertise and experience of the Board. The Board
subsequently concurred with the recommendation of
To ensure any cash payments made are in alignment with
the NRC.
shareholders’ interests, the Project Incentive has been
designed as a value-sharing plan with payments only taking Following the retirement of Mr Kazuo Ito as Non-executive
place if certain identified liquidity events associated with the Director of the Company in May 2023 and the concurrent
Re-organisation Plan occur – the liquidity events must result relinquishment of his membership of the Audit, Board
in the creation of shareholder value that exceeds certain Steering and Capital and Investment Committees, the NRC
thresholds in accordance with the terms of the Project advised the Board on the appointment of replacements for
Incentive. The proposed IPOs of both Olam Agri and ofi Mr Kazuo Ito’s Board Committee positions.
qualify as liquidity events, however, both IPOs were delayed
The NRC also carried out a review of the composition of the
during the year under review due to market conditions. As
Board. This considered factors such as the range,
the identified liquidity events did not take place during the
magnitude, nature and depth of the Group’s business and
relevant period, no payment under the Project Incentive has
operations. Following completion of the review, the NRC
been proposed or made.
opined that the composition of the existing Board and its size
It is intended that the Project Incentive will continue to be remained appropriate in relation to the effective discharge of
monitored in FY2024. its duties and responsibilities in view of the future plans of
Olam businesses.
How the Project Incentive works
If a minimum value creation threshold is not met, there will be As part of the Group’s re-organisation into three operating
no payment under the Project Incentive. If it is met, a certain groups, the NRC was closely involved in the appointment
percentage of the total increase in equity value will be paid of the Olam Agri Board Chair. The NRC engaged search
under the Project Incentive to the pool of employees. The cash consultants, Russell Reynolds, to identify suitable
payment under the Project Incentive ranges from 0% to 2% candidates. A selection panel comprising the NRC Chair,
of the total value uplift at the target level, and a maximum of another member of the NRC, a member of the Board and
3% of the total value uplift, subject to a maximum dollar value the Group CEO was established to consider, review and
limit. At the top end, if the stretch target increase in equity shortlist suitable candidates. The selection panel together
value is met, the Project Incentive will be approximately 2.9% with the Olam Agri Chair reviewed the appointment of the
(on a weighted average basis) of the total value uplift remainder of the Olam Agri Board. The NRC was kept up to
(subject to the above-mentioned maximum dollar value limit). date with progress and carried out reviews of candidates put
forward for consideration. The Committee also reserved the
The amounts of any payments made to each of the relevant right to interview or meet any of the prospective Olam Agri
employees in the Project Incentive pool will need to be Board candidates.

Olam Group Limited Annual Report 2023 175

Board Risk Committee (BRC)

Board Risk Committee (BRC)

Members of the Committee

• Marie Elaine Teo* (Chair)
• Yap Chee Keong*
• Shuji Kobayashi+
During the year, the BRC held 5 meetings.

 Meeting attendance shown on page 164.

* Independent Director
+ Mr Shuji Kobayashi was appointed as Non-executive Director
on 5 May 2023 and was appointed as member of the AC, BRC
and CIC.

This report serves to provide details on how the Group complies

with Principle 9 of the Code and the Risk Governance Guidelines
issued by Singapore’s Corporate Governance Council.
All current members of the BRC are looking
As of 1 January 2024, the BRC was combined with the Audit
Committee and renamed the Audit and Risk Committee. forward to continue assisting the Board in
For the purposes of this report, the Committee shall continue overseeing the Company’s risk management
to be referred to as the Board Risk Committee or the BRC. framework and policies as part of the newly
Purpose merged Audit and Risk Committee.
During the year, the BRC, the Board and the other Board
Committees were responsible for the governance of risk and
risk oversight across the Group. Supported by the various
Group functions, the Board Committees, including the BRC, Marie Elaine Teo
ensured that management maintained a sound system of risk BRC Chair
management and internal controls, as stipulated in Principle 9
of the Code, and continued to instil a culture that fosters
effective risk governance across the Group to safeguard the
interests of the Company and its shareholders.
• Requesting, receiving and reviewing reports from
The Committee’s responsibilities included: management on risk exposures;
• Reviewing with management the Group’s framework, • Identifying and evaluating new risks at an enterprise level
guidelines, policies and systems to govern the process for and tabling a report to the Board;
assessing and managing risks; • Reviewing the report and findings under the Integrated
• Reviewing and recommending annual risk limits and Risk and Assurance Framework;
trading risk budgets; • Reviewing market compliance updates and issues
• Reviewing benchmarks for, and major risk exposures from, reported; and
such risks; • Reviewing annually the Insurance Strategy and Plan.

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Principle 9 Market Compliance

The Board is responsible for the governance of risk and The ofi Compliance function and Olam Agri Market Compliance
ensures that management maintains a sound system of risk Office, jointly referred to herein as the “Market Compliance
management and internal controls, to safeguard the Office” (MCO), have in place systems and controls to monitor
interests of the company and its shareholders. and manage their respective exchange and over-the-counter
derivative trading activities to ensure compliance with
Terms of Reference exchange rules and regulatory requirements. This includes,
BRC is guided by its written Terms of Reference which set but is not limited to, trade surveillance, monitoring of position
out the detailed scope of the Committee’s work and limits and other exchange rules, compliance with applicable
responsibilities, including the BRC’s remit to support the regulatory reporting requirements and providing training for
Board’s oversight of the Company’s risk management traders on an annual basis and additionally as required.
framework and policies. The Terms of Reference remained
unchanged during the year. Any breaches of exchange regulations or regulatory
requirements are identified and escalated to the BRC by the
Approach to the governance of risk Chief Compliance Officer. The BRC met with the ofi and Olam
The Group’s approach to the governance of risk is centred Agri Chief Compliance Officers on a quarterly basis where they
around compliance with the recommendations contained in reviewed and discussed the MCO’s activities and any findings.
the Code and the Risk Governance Guidelines issued by
Approach to risk management
Singapore’s Corporate Governance Council.
The Company’s risk management framework has been
In line with this, the BRC, supported by the respective Risk designed to assess continuously and rigorously the likelihood
Offices and Market Compliance functions of the Company’s and impact of any identified risks, as well as to manage any
operating groups – Olam Agri and ofi – worked closely with required remedial actions to be or already taken. To ensure
the Board to instil an effective risk governance culture alignment with industry best practices, the Company
throughout the business. continually updates its approach to managing risk:
Furthermore, the Company has established mechanisms and • Risk identification – risks are identified both from a
systems in place that are focused on firstly identifying risks top-down strategic perspective and from a bottom-up
that are inherent in the Group’s business model and business perspective; and
strategy, as well as those that arise from external factors • Risk monitoring – the Company takes a holistic approach
and other exposures; and secondly, monitoring closely any to enterprise-wide risk, which covers a range of both
key identified risks that could have an adverse impact on the quantifiable and non-quantifiable risks across each step
Group, its strategy, reputation and long-term viability. of the value-chain.
A key tool used to identify and monitor risks is the The Group’s risk framework assesses the effectiveness of
Integrated Risk and Assurance Framework (IRAF), which the controls across risk events within 11 categories – a list of all
BRC regularly reviewed at its quarterly meetings. The BRC 52 risks, the 11 categories and mitigating action taken can be
discussed with the management team the various risks in the found on pages 130 to 132 of this report. All the risks are
context of established threshold levels. evaluated on a qualitative basis, and some of them are also
Risk governance structure assessed quantitatively. All risks are reported under the IRAF,
which includes an assessment of the likelihood of each risk
During the year under review, the Group’s risk governance occurring along with its potential impact. A more detailed
structure was, and continues to be, as follows: reporting of trading risks is provided under a quarterly
• In Olam Agri, both the Chief Risk Officer and the Head of Executive Risk Summary. Together, the IRAF and the
Market Compliance Office (MCO) report to the CEO – Executive Risk Summary are intended to assist the Board’s
Operations. In ofi, the head of risk reports to the CFO and evaluation of the effectiveness of the risk management
the head of MCO reports to the head of Compliance who systems, processes and mitigation plans.
reports to the head of Legal; and
Areas of focus for the Committee during the year
• The respective Risk Offices at Olam Agri and ofi were,
and continue to be, responsible for identifying, assessing, During the year, and as part of the Company’s
measuring and monitoring risks and providing the Re-organisation Plan, the BRC reviewed work completed
Company’s Senior Management Team and the Board with by Olam Agri and ofi separately to determine what the
assurance that all risks borne by the Company are within regulatory impact on each operating group would be once
set risk limits. their respective Initial Public Offerings (IPO) proceed. Due to
the delay in both IPO processes, it is intended that this work
Risk Office will be refreshed and updated on a regular basis.
The Risk Offices at Olam Agri and ofi are mandated to allocate In addition, as part of its ongoing monitoring of the Group
risk capital across each of their respective businesses based re-organisation, the BRC, supported by the Risk Offices and
on an individual unit’s competitive position and track record, MCOs of the two operating groups, reviewed the risks
along with trading and market conditions. Trading risk limits associated with the restructuring, such as the segregation of
were presented to the BRC for review and approval as part of roles and resources, changes to the reporting structure systems
the annual budgeting exercise. Trading risk limits cover and compliance across the operating groups. The BRC was
market risk, currency risk, credit risk and counterparty risk. also provided with regular updates on the installation of a
Risk limits are recalibrated where necessary. new market compliance trade surveillance system.

Olam Group Limited Annual Report 2023 177

Audit Committee (AC)

Audit Committee (AC)

Members of the Committee

• Yap Chee Keong* (Chair)
• Marie Elaine Teo*
• Ajai Puri (Dr)*
• Nihal Vijaya Devadas Kaviratne CBE*
• Kazuo Ito+
• Shuji Kobayashi+
During the year, the AC held 6 meetings.

 Meeting attendance shown on page 164.

* Independent Director
+ Mr Kazuo Ito resigned as Non-executive Director and relinquished
his appointment on the AC with effect from 5 May 2023, and was
replaced by Mr Shuji Kobayashi on even date.
AC membership does not include any former partners or directors of
the Company’s existing auditing firm or auditing corporation.

As of 1 January 2024, the Audit Committee was combined

with the Board Risk Committee (BRC) to form the Audit and
Risk Committee (ARC). For the purposes of this report,
the Committee shall continue to be referred to as the As of 1 January 2024, the Audit Committee
Audit Committee or the AC. (AC) was combined with the Board Risk
Purpose Committee (BRC) to form the Audit and
The purpose of the AC remains unchanged – to support the Risk Committee (ARC). The AC comprises
Board’s discharging of its statutory and other responsibilities a majority of Independent Non-executive
regarding the following:
Directors, and the Chair of the AC has
• Internal controls; relevant accounting and financial
• Financial and accounting matters; management expertise and experience.”
• Operational, compliance and information technology
controls; and
• Business and financial risk management policies and systems.
The AC is also responsible for ensuring that the effectiveness Yap Chee Keong
of all the above are reviewed at least annually, either by the AC Chair
external or internal auditors.

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Principle 10 • Monitoring the Company’s risk of becoming subject to,

The Board has an Audit Committee (AC) which discharges or violating, any Sanctions Law, and ensuring timely and
its duties objectively. accurate disclosures to SGX and other relevant authorities;
• Considering the appointment or re-appointment of the
Terms of Reference external auditors and matters relating to the resignation
The Committee has explicit authority to investigate any or dismissal of the auditor;
matter that falls within the scope of its Terms of Reference • Reviewing the scope and results of the audit and its
and has full access to, and the cooperation of, management. cost-effectiveness, and the independence and objectivity
Furthermore, the AC has full discretion to invite any Director, of the external auditors, annually;
key executive or officers of the Company to attend its • Reviewing the adequacy and independence of the
meetings to enable it to discharge its functions properly. internal auditors;
The Committee also has access, through management, • Reviewing interested person transactions (IPT) falling
to external counsels, advisors and consultants. within the scope of the IPT mandate and Chapter 9 of the
The AC reviews its Terms of Reference from time to time. SGX-ST Listing Manual;
There were no changes to the AC’s Terms of Reference that • Understanding the specific policies and procedures in
were recommended to the NRC and Board for consideration. place to identify conflict of interests, misconduct, bribery,
The Committee’s Terms of Reference has been approved by corruption-related risks including how policies and
the Board. procedures are operationalised;
• Undertaking such other reviews and projects as may be
Key functions requested by the Board of Directors and reporting to the
The Committee’s key functions remain unchanged from Board of Directors its findings from time to time on
previous years and include the following: matters arising and requiring the attention of the AC; and
• Reviewing with the external auditors their Audit Plan, • Undertaking such other functions and duties as may be
their evaluation of the system of internal controls, prescribed by statute and the Listing Rules or
their report and management letter to the AC, recommended by the Code and by such amendments
management responses, and the allocation of audit made thereto from time to time.
resources according to the key business and financial risk Meetings held during the year
areas as well as the optimum coverage and efforts
between the external and internal auditors; The AC holds quarterly meetings. As and when required,
meetings are also held outside of the usual quarterly cycle.
• Reviewing the half-year and annual financial statements
before submission to the Board of Directors for approval; During the year under review, the AC met six times.
• Reviewing with management any significant accounting Ahead of each formal meeting, the Chair of the AC regularly
policies, estimates, and judgments made, salient liaise with the external auditors, internal auditors and key
accounting matters, changes to the accounting management personnel to discuss and review matters.
standards, issues and developments with a direct impact The Chair also ensures that the Committee is provided with
on financial statements, major operating risk areas, all relevant information, and any additional assurances that
the overview of all Group risk on an integrated basis, may be required, in good time ahead of each meeting.
significant adjustments resulting from the audit,
the going concern statement, compliance with accounting During the year, the Chair met with the audit committee
standards, and compliance with any SGX and statutory/ chairs of Olam Agri and ofi, and key management personnel
regulatory requirements; including the Group Chief Financial Officer (GCFO),
• Reviewing the proposed scope of the Internal Audit the Chief Executive Officer for ofi, Global Head of
function, the performance of the Internal Audit function, Internal Audit, Chief Risk Officer (CRO), Chief Information
Internal Audit’s report on their audit findings and Security Officer (CISO), Group Legal Counsel, and Global
remediation and approving the Internal Audit Plan as and Head for Tax.
when there are changes;
AC reviews
• Reviewing the internal controls and procedures, ensuring
Members of the management team are regularly invited to
coordination between the external auditors, the internal
attend AC meetings to review and provide/receive updates
auditors and management, reviewing the assistance given
on matters such as Group performance, salient accounting
by management to the auditors and discussing problems
matters, legal, compliance and sanctions-related matters,
and concerns, if any, arising from the interim and final
interested person transactions, information technology and
audits, and any matters which the auditors may wish to
cybersecurity controls, tax compliance, internal audit
discuss (in the absence of management where necessary);
findings (including whistleblowing report and fraud).
• Reviewing the assurance from the Group CEO and the
Group CFO on the financial records and financial statements; During the year, the CFOs for each operating groups,
• Reviewing and discussing with the internal auditors, GCFO, internal and external auditors, CRO, CISO, Group
external auditors and management any suspected fraud Legal Counsel, Global Head for Tax, Country and Function
or irregularity, or suspected infringement of any relevant Heads were invited to attend AC meetings to discuss a
laws, rules or regulations, which has, or is likely to have, number of matters including:
a material impact on the Group’s operating results or
financial position, and management responses to the same;

Olam Group Limited Annual Report 2023 179

Audit Committee (AC)

• Changes in accounting policies and practices; Non-audit services review

• Development in local and global tax regime; The AC undertakes an annual review of all non-audit services
• Internal audit plan and findings; performed by the external auditors to ascertain their
• Accounting issues that have an impact on the independence and objectivity, both of which are gauged
Group’s financials; against an established boundary condition.
• Significant adjustments resulting from the audit; Following the review carried out during the year, the AC was
• Major operating risk areas along with an overview of all satisfied that the non-audit services provided by the external
Group risk on an integrated basis; auditors would not impact their independence. The table
• The going concern statement; below along with Note 7 of the financial statements within
• Compliance with accounting standards; this report set out the amount of fees paid to the external
• Compliance with any SGX and statutory/regulatory auditors for audit and non-audit services for FY2023.
requirements; and
2023 2022
• Matters of significance in the audit of the financial statements. S$’000 S$’000

The Committee also commissioned a review by external Auditors’ remuneration:

independent accountants and legal counsels of the • Ernst & Young LLP,
allegations in certain press articles concerning the Group’s Singapore1 6,223 6,727
operations in Nigeria (the “Review”). The Company had • Other member firms of
announced on 19 February 2024 that the investigation team Ernst & Young Global1 10,076 9,845
did not identify evidence that establishes the allegations set Non-audit fees:
out in the articles. • Ernst & Young LLP,
Singapore2 2,408 2,811
Key audit matters
• Other member firms of
As part of its key functions, the AC is responsible for reviewing
Ernst & Young Global2 173 1,030
the unaudited financial statements of the Company prior
to the release of the announcement of the financial results
1. Post the Group re-organisation which completed in the prior year, the audit
and the despatch of the audited financial statements to fees paid to Ernst & Young LLP, Singapore and other member firms of Ernst
shareholders. In addition, the AC also reviews the adequacy, & Young Global relates to additional statutory financial statements
requirements in Singapore and globally.
structure and content of the results announcements with
2. In the current financial year, non-audit fees paid to Ernst & Young LLP,
Management to ensure that the content has been presented Singapore mainly relate to the work performed for financial due diligence of
clearly and fairly to all stakeholders. Olam Agri in connection to the proposed listing of the Olam Agri on both
Singapore Stock Exchange and Tadawul in the Kingdom of Saudi Arabia. In
In accordance with the Committee’s key functions listed above, the prior financial year, non-audit fees paid to Ernst & Young LLP,
Singapore mainly relate to the work performed for financial due diligence of
the AC carried out a review of the Group’s half-year unaudited ofi in connection with the ofi IPO on the London Stock Exchange which was
and annual audited financial statements for the year ended updated for prior year purposes.
31 December 2023. Members of the management team and
the external auditors were in attendance to discuss key audit
SGX requirements
matters with particular focus on the assumptions taken and
the estimates made for those matters which involved a high SGX rules stipulate that an audit partner may only be in
degree of estimation and the exercise of managerial judgement. charge of five consecutive annual audits for the same client.
Based on the reviews of these assumptions and estimations, As Christopher Wong was designated as the audit partner
the AC concurs with the basis and assessment of the Key at Ernst & Young LLP during the financial year ended
Audit Matters disclosed in the Independent Auditors’ Report. 31 December 2019, Ernst & Young LLP, being the external
auditor, therefore met this requirement during the year under
External auditors review. As a result, the Company satisfied the requirements
The role of the external auditors is to report their findings and on Rules 712, 713 and 715 of the SGX-ST Listing Manual in
recommendations independently to the AC. relation to the appointment of auditors.

AC interactions with the external auditors Internal audit

At the Committee’s quarterly meetings, the external auditors Covering all of the Group’s operations as well as those of its
update the AC on any recent changes that may have been controlled entities, the Internal Audit (IA) function acts as a key
made (or proposed) to the financial reporting and accounting line of defence, providing oversight for financial, accounting,
standards and the impact these could have on the Company’s administrative, computing, sustainability, statutory compliance,
financial statements, tax matters, policies and their audit of asset management, control systems and other operational
the Company’s systems of internal controls. The external activities. The IA function also plays an integral role in the
auditors are also available to meet with the AC outside of the Group’s risk management and governance processes. IA has
quarterly meetings cycle without Management being ownership of the Group’s Integrated Risk and Assurance
present, to discuss any issues of concern. Framework (IRAF) and the function works closely with the
Management team to promote effective risk management
and robust internal risk controls across the Group.

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All internal audits are undertaken in accordance with standards Advisory/Consulting – focused on raising awareness of
set by both internationally and nationally recognised risks and fraud internally through activities such as regular
professional bodies, such as The Institute of Internal Auditors’ training sessions.
Standards for the Professional Practice of Internal Auditing.
AC oversight of Internal Audit
Furthermore, the IA team is comprised of individuals with
As part of its oversight role, the AC reviews the IA’s
relevant qualifications and experience, each of whom is
performance, its findings, including fraud reporting and
empowered to discharge their duties effectively, In line with
complaints received from the whistleblowing platform,
this, the team, at all times, has full, free and unrestricted
management responses and the Internal Audit Plan.
access to all books, personnel, documents, accounts,
When carrying out its review, the AC also establishes
property, vouchers, records, correspondence and other
whether IA was able to discharge its duties effectively and
Company data. Members of the IA function also have the
that no limitation on its activities has been imposed.
right to enter all Group premises and to request any officer
of the Company to provide information and/or explanations In addition, the AC reviews the scope of the IA function on
that are deemed necessary for the team to form an opinion a regular basis so that all of the Group’s key operational,
on the probity of action and adequacy of systems and/or financial and related activities are covered.
controls. IA also has access to specialist auditors, as well as
The AC’s remit extends to reviewing and assessing the
technical tools so that the effectiveness of the internal
composition of the IA Team, its size, skillset and resources
processes and risk management processes can be regularly
each year to ensure the continued effective execution of
tested against the evolving nature of concerns and issues.
internal audits, notwithstanding the constantly evolving
Internal Audit findings/ratings regarding the performance
needs of the Group’s businesses. The AC undertakes detailed
of managers are taken into account by Human Resources.
reviews of the three-year rolling Internal Audit Plan and the
The Internal Audit function has three main components: adequacy of the reports generated to satisfy itself that the
IA function is effective, independent and has appropriate
1. Audit work;
standing within the Company.
2. Automated oversight; and
3. Advisory/consulting The AC also regularly meets with IA, without the presence of
Management, to discuss any issues of concern. The Head of
Audit work – audits carried out by the IA team fall under Internal Audit reports directly to the AC Chair. Furthermore,
three categories: to ensure that the source of any risk is addressed promptly,
IA Country and Function Heads may be invited to attend
I. Field Audits – core audits of the Group’s subsidiaries.
AC meetings to discuss any relevant incident(s) and any
The frequency of these audits is determined by factors such
remediation action that has or is to be taken. The Committee
as size and past findings. Based on these factors, each
is also actively involved in the appointment, ongoing evaluation
subsidiary falls under one of three priority categories:
and replacement/dismissal of the Head of Internal Audit.
• High – requires an audit each year;
Highlights of IA activities in 2023
• Medium – requires an audit every two years; and
• Low – requires an audit every three years. During the year, IA carried out a number of field audits.
These were primarily onsite exercises, although remote/
II. Specialist/Thematic Audits – these can cover all geographies desktop audits were also undertaken for low-risk entities or
and all areas of the business. For example, Treasury where it was not practical for field visits to be made by the
activities, such as derivatives trading, arbitrage and hedging. IA team. Remote/desktop audits make use of conference/
III. IT Audits – cover all aspects of IT including systems zoom calls and digital media to collate relevant information
resilience, cybersecurity and ransomware. and audit work papers, enhanced data analytics tools and
remote surveys.
Automated oversight – focused on extending the IA team’s
reach and capacity through the use of technology, A review of ESG activities was undertaken over the course
automated oversight comprises three key sub-components: of the year. ESG is increasingly an integral part of Internal
Audit’s scope and activities. Work carried out by the IA function
I. Data analytics – to help ensure trading and operational included reviewing the Group’s ESG Report, sustainability
activities are constantly monitored; pathways, platform datapoints and relevant controls to
II. Integrated Risk and Assurance Framework – incorporates ensure alignment with the SGX’s list of 27 core ESG metrics.
both the principal risks faced by the Group and the As part of its ongoing Specialist/Thematic Audit on Group
critical controls that are in place to mitigate these. In IT and data analytics, IA completed an assessment on
terms of control validation, this is underpinned by the ransomware and cybersecurity.
three lines of defence principle:
Following the establishment of individual IA teams for each
• Level one sign-off on the ground; of the new independent operating groups in 2022, the ofi
• Level two sign-off by function heads; and IA function completed a Quality Food and Safety (“QFS”)
• Level three sign-off by IA. Audit which reviewed food standards, how these are met by
the Group and any changes to relevant regulations that
III. Whistleblowing policy – enables employees to report have come into force or are due to be made. The findings of
fraudulent activity anonymously to the IA team via an the audit were discussed at the AC’s quarterly meeting.
independent platform which the IA then investigates and
shares any findings with the Senior Management Team
and the AC.

Olam Group Limited Annual Report 2023 181

Audit Committee (AC)

Ethics, compliance and whistleblowing Periodic reminders and updates on the EBP are communicated
Ethical Business Programme to all staff as part of the Company’s efforts to instil strong
The Company is committed to setting high ethical conduct ethical values.
standards across the Group. A zero-tolerance approach to Whistleblowing
bribery, fraud and corruption has been adopted. Initiatives All employees are encouraged to report actual or suspected
such as the Ethical Business Programme (EBP) reflect our wrongdoing, unethical practices or illegal activity that is in
commitment to fostering an environment where integrity, breach of the Company’s Code(s) or policies. Such reporting
transparency and ethical behaviour are embedded in our must be done in good faith where the person reporting may
business practices. report in confidence and without fear of reprisals or concerns.
Olam Agri and ofi revised and implemented a new Code of A dedicated whistleblowing platform (known as “Speak Up”)
Conduct and rolled it out across the organisations during has been implemented to ensure discreet reporting. These
2023. The Code addresses behaviour and policies all of our are available on our external websites and internally on
employees are expected to comply with. Workplace, the Groups employee engagement platform.

All employees are routinely required to undergo online All reports are dealt with promptly by the relevant function
training to familiarise themselves with the Anti-Bribery and independently, depending on the issue being reported.
Corruption (ABC) Policy amongst other relevant Policies as To safeguard the whistleblower from retaliation for raising
set out in the Code of Conduct. Completion of the training a compliance or integrity issue, employees are advised to
is tracked and monitored by the EBP and Legal Compliance immediately report any suspicions of retaliatory action to the
Team. The status is reported to the Internal Audit and the Legal or HR functions. To ensure that all reported incidents/
Audit and Risk Committee under the IRAF on a quarterly basis. complaints are adequately brought to the notice of the

Whistleblowing Investigation Process

Phase I Phase II Phase III Phase IV

Identification Escalation Investigation Resolution

Complaint received High impact/critical

and/or forwarded to IA complaints notified
to AC Chair No
Investigation
anchored by Reporting to
Complaint received
IAIL shares the IAIL*. Investigation Audit
and recorded by IA Written
Complaint with If previously report Committee
investigation
Head of IA and CEO agreed, Accept finalised and High/Critical:
report Yes
with “next-steps” IAIL will results? decisions Full report/results
Identified as a reviewed
strategy (including appoint an agreed Medium/Low:
complaint to be dealt by CEO
whether to appoint independent by CEO Summary
with under the Olam an independent investigation updates
Grievance Policy investigations agency
agency

High

Complaint reviewed Escalate***

Investigation
by IA Investigation
anchored by Written
Do we have Lead* (IAIL) & Monthly
the IAIL investigation
prioritised Accept Actions summary
enough info to Yes Medium working with report Yes
base on CEO results? implemented updates
proceed? the relevant reviewed by
Guidelines into to CEO
Region IAIL
High, Medium and
Team**
Low Impact
No
Low

Conduct additional
Escalate***
fact finding
Written
Investigation
investigation Feedback to
conducted
report Accept complainant
by BU/Local Yes
reviewed by results? (where
manage-
Country applicable)
ment
Team**

*
Supported by HR and Legal as deemed necessary
**
Regional/Country team to consist of members from regional/country leadership team, Legal and HR
***
Investigation results to be escalated to higher forum if results indicate a more serious breach

182 olamgroup.com
 Governance
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stakeholders concerned and that corrective action has been Integrated Risk and Assurance Framework
initiated, the Whistleblowing Policy sets out investigations The Integrated Risk and Assurance Framework (IRAF) was
guidelines. Additionally, Quarterly updates are provided to developed in 2016 and has since been embedded across the
the Audit committee on the status of the complaints. business. By taking a holistic view of risk, which includes the
Internal controls evaluation of the level of risk, its impact, frequency and
ownership, the IRAF provides a single view of assurance across
The Company has an established system of robust internal
a wide range of relevant risks. The platform assists the Board
controls that have been developed to provide reasonable
and Board Committees in their review of risks. It also controls
assurance that the organisation’s related objectives will be
and helps inform an opinion on the adequacy and effectiveness
achieved. These internal controls are regularly reviewed and,
of the risk and internal controls frameworks across key
when necessary, adapted and strengthened to accommodate
activities, including financial, operational, compliance and
any changes to the regulatory landscape and to reflect the
information technology and risk management.
evolving needs of the Group and its businesses.
The IRAF also helps reduce duplication and/or bridge gaps
Any significant findings and observations of internal control
across Group functions and ensures accountability across
gaps, lapses and areas of strengthening are communicated
the Group’s four lines of defence:
to the AC and management in each quarter. The AC reviews
quarterly the management response and remedial action • First line of defence – the Business Units – Olam,
taken on the significant findings and observations. Where Olam Agri, ofi;
required, the AC meets with Business/Function/Country • Second line of defence – the Functions – including
Head to discuss any significant finding and observation. AC finance/Treasury, Legal, IT, Plantations;
Chair may also visit overseas operations where warranted. • Third line of defence – Internal Audit; and
The Company’s internal controls structure is made up of a • Fourth line of defence – external audit.
series of frameworks, policies and procedures that have been Central to the IRAF is a clearly defined process for validating
established, including: the performance and effectiveness of the various controls.
• Internal Audit, including any specialised audits This process starts with a quarterly validation request email
undertaken, as well as external auditor work; sent to all business units. The IA function monitors the
• An enterprise risk management framework that examines process and shares the validation results on the performance
the effectiveness of the Company’s risk management plans, of control activities and control effectiveness with the
systems, processes and procedures; function teams. IA also reviews the results with the heads of
• The information security controls framework and the functions before compiling the final assessments which
CISO monitoring; and are then presented to the AC.
• The IRAF which has been implemented across all the Separate platforms exist for Olam Agri and ofi to accommodate
Group’s functions and operating groups (see below for the different areas of focus for each sub-Group. This allows
further details). the relevant IRAF to be adapted to reflect the challenges/
issues each operating group faces. For example, QFS
controls have been incorporated into ofi’s IRAF.
As part of its duties, the AC regularly reviews and, if necessary,
Quarterly Validation request email challenges the IRAF to satisfy itself that the controls at both
to all the units Group and sub-Group levels remain relevant to the business.
During the year under review, ESG controls were updated
Online Monitoring & Follow-up within the IRAF while other controls were reviewed and, where
on completion, by IA necessary, refreshed.

Validation results on
Performance of Control Activities
& Control Effectiveness Shared
with Functional teams

IA Reviews and Discuss results

with Functional Heads

Final Results consolidated by IA

Control Assessments
presented to AC

Olam Group Limited Annual Report 2023 183

Audit Committee (AC)

Olam’s Lines of Defence Financial limits

Operating and capital expenditure, goods and services
procurement and acquisition and disposal of investments
are subject to authorisation and financial approval limits.
Board/Audit Committee For investments and divestments exceeding certain threshold
limits, Capex transactions and any financing and
refinancing outside of the approved Annual Refinancing
Plan, net debt and gearing limits, Board approval is required.
For transactions below set limits, authority is delegated to
Fourth Line of Defence Board Committees and the management team. Reserve
matters, such as equity issuance, dividends and other
External Audit distributions require the Board’s specific approval.

Board statement on Group risk management

systems and internal controls
The Board has received assurance from the Group CEO and
Third Line of Defence
the Group CFO that:
Internal Audit • The financial records have been properly maintained and
the financial statements give a true and fair view of the
Company’s operations and finances;
• From their review with the risk owners of their assessments
of the standard operating procedures framework,
Second Line of Defence escalation reporting, breaches and assurance processes,
they are satisfied with the adequacy and effectiveness of
Functions the Company’s risk management and internal control
systems; and
• The Company has implemented adequate and effective
control measures to protect its exposure to and interests in
Finance relation to any sanctions-related risks.
RO MCO
Treasury Based on the work carried out under the IRAF and performed
by the control functions and the internal and external
auditors, the assurance received from the Group CEO and
the Group CFO as well as the reviews undertaken by various
MATS
MATS MATS
CRS Insurance Legal Board Committees:
• The Board, with the concurrence of the AC and BRC
(together, the ARC), is of the view that the Group’s risk
Taxation management systems are adequate and effective; and
Plantations MATS
IT
• The Board, with the concurrence of the AC, is of the
opinion that the internal controls, addressing the financial,
operational, compliance (including sanctions-related risk)
and information technology controls of the Company,
HO Coverage Region Coverage Legal entity coverage are adequate and effective to meet the needs of the
Functions comprising First and Second Line of Defence Group in its current business environment.
The Board notes that the internal audit and the internal
controls systems put in place by management provide
reasonable assurance against material financial
misstatements or loss, and assurance reliability, relevance
First Line of Defence
and integrity of information (including financial information),
completeness of records, safeguarding of assets,
Business Units effectiveness and efficiency of operations and compliance
with applicable policies, laws and regulations. However, it is
opined that such assurance cannot be absolute in view of the
inherent limitations of any internal audit and internal controls
system against the occurrence of significant human and
system errors, poor judgement in decision-making, losses,
fraud or other irregularities.

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Capital and Investment

Committee (CIC)

Members of the Committee

• Lim Ah Doo* (Chair)
• Sunny George Verghese
• Kazuo Ito+
• Ajai Puri (Dr)*
• Nagi Adel Hamiyeh
• Shuji Kobayashi+
During the year, the CIC held 3 meetings.

 Meeting attendance shown on page 164.

* Independent Director
+ Mr Kazuo Ito resigned as Non-Executive Director and
relinquished his appointment on the AC, BSC and CIC with effect
from 5 May 2023. Mr Kazuo Ito was replaced on the Committee
by Mr Shuji Kobayashi.

As announced by the Company on 28 December 2023,

with effect from 1 January 2024, the role and responsibilities
of the Capital and Investment Committee (CIC) now fall
under the direct oversight of the Board. Following this, It has been a privilege to serve as Chair of
the CIC was dissolved on 1 January 2024. This is therefore the CIC until its dissolution on 1 January
the final annual review of the CIC’s activities and covers the
year ended 31 December 2023.
2024. I, along with the other members of the
Committee, look forward to continuing our
Purpose work and performing our oversight role on
In line with its purpose, the Committee’s remit during the
matters such as investments and financing
year was centred around reviewing, approving and/or
recommending the approval of the investments and with the rest of the Board.
divestments plan, overall capital structure, gearing and net
debt levels and the annual financing plans.
Greater focus was placed on the areas concerning the
remaining businesses as well the group as a whole, whilst Lim Ah Doo
receiving updates on the work done by the independent CIC Chair
boards of ofi and Olam Agri.

Olam Group Limited Annual Report 2023 185

Capital and Investment Committee (CIC)

Responsibilities
During the year under review, the responsibilities of the CIC,
included:
• Reviewing and recommending for approval of the Board,
the overall capital structure, gearing and net debt norms
for the Company;
• Reviewing periodically the performance of investments
and acquisitions made by the Company, its subsidiaries
or associates against the investment thesis;
• Reviewing and monitoring the Company’s capital structure;
• Reviewing and approving the Annual Financing Plans
(debt raising or refinancing);
• Monitoring the progress of the divestment of exiting assets;
• Reviewing and recommending for approval of the Board,
issuance of any equity-linked instruments, including
convertible bonds and perpetual securities;
• Considering and approving all capital expenditure,
acquisition and/or divestment proposals pursuant to the
policy on approval limit for capital expenditure
and acquisitions;
• Monitoring interest rate trends and implications; and
• Reviewing and assessing the adequacy of foreign
currency management.
In order to discharge the above responsibilities effectively,
the CIC had access to any member of the management
team as and when required, along with relevant information
on financing plans, investments and divestments. The
Committee also actively engaged with members of the
management team when deliberating certain subject matters
that fall within the CIC’s remit.
Furthermore, owing to the nature of the CIC’s activities,
particularly reviewing/monitoring investments and financing
plans, the Committee continued to work closely with other
Board Committees:
• The AC, specifically with regards to the CIC’s work
relating to challenged assets and businesses and
discussions regarding potential impairments;
• The BRC, which sets key inputs and parameters, such as
risk appetite and the identification of risks, all of which
require consideration when assessing potential
investments; and
• The CRSC which examines issues relating to sustainability
and the ongoing focus on the Group’s prioritisation of and
compliance with all appropriate laws and policies in
relation to investments, including those that have been
completed and those that are under consideration.

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Corporate Responsibility and

Sustainability Committee (CRSC)

Members of the Committee

• Nihal Vijaya Devadas Kaviratne CBE* (Chair)
• Sunny George Verghese
• Marie Elaine Teo*
• Ajai Puri (Dr)*
• Hideyuki Hori (resigned on 4 March 2024)
• Yuji Tsushima (appointed on 4 March 2024)
During the year, the CRSC held 4 meetings.

 Meeting attendance shown on page 164.

* Independent Director

As of 1 January 2024, the Corporate Responsibility and

Sustainability Committee was renamed the Sustainability
Committee, to align it with the similar Board committee
established in each of the operating group, ofi and Olam The Committee’s work helps ensure that we
Agri. For the purpose of this report, the Committee shall deliver for all our stakeholders. This does not
continue to be referred to as the CRSC.
just include our customers, shareholders
At Olam, we recognise that the scale and reach of our and other capital providers, but also our
operations, both in terms of our own footprint and that of
our supply chains, provides us with a platform with which
employees, suppliers and the communities
we can positively impact the societal and environmental and environment in which we operate.”
challenges that the wider food and agriculture sector faces.
By leveraging this platform, we can work for the benefit of
all our stakeholders: customers, employees, suppliers,
investors/capital providers, regulators and the communities
Nihal Vijaya Devadas Kaviratne CBE
in which we have a presence in. The CRSC plays a key role in
CRSC Chair
ensuring we deliver, specifically through its role in managing
environmental, social and governance-related risks and also
in monitoring the implementation of CR&S strategy,
initiatives, policies and investments.
This report provides an overview of the work and activities of
the CR&S during the year ended 31 December 2023.

Purpose
Sustainability has been and continues to be a major area of
focus for the Group. Issues, such as Safety and Health, soil
and human rights, have been key priorities for the Group for

Olam Group Limited Annual Report 2023 187

Corporate Responsibility and Sustainability Committee (CRSC)

a number of years. In line with this, the CR&S supports the • CR&S function heads for each of ofi, Olam Agri and the
Board in monitoring and managing the environmental, social remaining businesses as well as the Group Head for
and governance-related risks faced by the Company. Safety and Health regularly attends the CRSC meetings
to provide their report and update;
The CRSC’s responsibilities include:
• Members of the CRSC are able to visit the Company’s
• Reviewing and recommending to the Board the Corporate global operations to monitor the CRSC function’s
Responsibility and Sustainability (CR&S) vision and activities on the ground and also to gain deeper insights
strategy for the Group; into the policies and projects; and
• Overseeing the integration of CR&S perspectives into the • The CRSC is kept informed of the Company’s discussions
Company’s strategy and businesses; with relevant Non-Governmental Organisations.
• Reviewing global CR&S issues and trends and assessing
Collaborating and sharing ideas with organisations across
their potential impact on the Group;
the public and private sectors forms a key part of the
• Reviewing the state of the Group’s Safety and Health ongoing development of the Company’s corporate
measures and status; responsibility and sustainability commitments and approach.
• Monitoring the implementation of strategy as well as
policies and investments in the CR&S area through the Key areas of focus for the Committee in 2023
CR&S function; The CRSC holds quarterly meetings. Topics discussed and
• Reviewing progress made on various initiatives; reviewed during these meetings held over the course of the
• Supporting management’s response to crisis year include:
where required;
• Regenerative agriculture initiatives, involving identifying
• Reviewing the Company’s report and statement on priority regions for action based on indicators of soil
sustainability activities, commitment and involvement and and ecosystem health and improving soil health in the
its sustainable sourcing platform; supply chain through support to local farmers;
• Reviewing the adequacy of the CR&S function; and • The roll-out of the Group’s ESG strategy and progress
• Reviewing the findings from the Integrated Risk and made towards achieving the Company’s 2030
Assurance Framework Report that relate to the sustainability goals. These are focused on advancing the
CRSC oversight. Company’s efforts to reduce its impact on the climate,
regenerate ecosystems, improve livelihoods and ensure
Terms of Reference good governance. Further information on how the Group
The above responsibilities are included in the Committee’s manages its impact on Climate Change can be found in
Terms of Reference. In February 2023, the members of the the Environment: Climate action section of this report;
Committee reviewed the Terms of Reference and, while no • The Group’s carbon footprint and pathways to
changes were made to the CRSC’s functions or purpose, it decarbonise. The CRSC monitored and assessed the
was decided to update the terminology used to align it more ongoing implementation of the Group’s strategy to reduce
closely with what is currently included in relevant benchmarks. emissions. Matters covered encompassed decarbonising
Oversight role factories and the wider supply chain through renewable
energy and nature-based solutions, as well as the impact
A key role of the CRSC is oversight of the Group’s
of methane on the carbon footprint;
sustainability policies and projects, both at the formulation
• Environmental and social risk management practices and
and implementation stages. The Committee actively
processes, such as supply chain mapping and satellite
monitors the effectiveness of the various ESG initiatives and
monitoring, pre-investment ESG due diligence systems,
programmes, how these are embedded across the Group
as well as the IRAF (Integrated Risk and Assurance
and how corporate responsibility and sustainability issues,
Framework);
and the management team’s reporting on them, are
incorporated in the Company’s investment decision process. • The Group’s sustainability policy framework, including
the Living Landscapes Policy, Supplier Code and Water,
The CRSC is also charged with monitoring the health, safety Sanitation and Hygiene standard. The CRSC reviewed the
and wellbeing of employees. The Group has a zero-tolerance benchmarking of these policies against standards and
culture to fatal accidents and the Committee reviews the norms that stakeholders, including banks and investors,
Group Head of Safety’s Safety and Health report each use/are familiar with when carrying out their own ESG
quarter. In addition, the Committee receives regular updates due diligence. The Committee examined how the key
on any safety issues and concerns on an ad hoc basis. policy framework could be improved upon further;
Further details on the Group’s Safety and Health measures • Safety performance, including the monitoring of relevant
can be found in the People and Culture: Safety and Health metrics such as Lost Time Injury Frequency Rate, and
section of this report. actions taken to continually improve the safety culture
To ensure the Committee is able to discharge its and performance; and
responsibilities effectively: • The CR&S central function’s organisational structure and
processes to ensure that the policies, procedures and
• The CRSC works closely with the Group’s CR&S function
goals already in place continue to be reflected in the
which, together with sustainability experts, spearheads
respective business strategies of the three operating groups.
the Group’s response to social and environmental issues.
The CR&S function is also responsible for embedding ESG
standards and best practices across the Group’s operations.

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Managing stakeholder relationships

This section sets out how the Company engages with its Salient and timely disclosure
stakeholders and in the process demonstrates how the The Group is at all times committed to delivering salient
Group complies with the Code’s Principles 11, 12 and 13 of information to the Investing Community in a fair, transparent
the Code. and timely manner:
Principle 11 • When meeting with the Investing Community,
The company treats all shareholders fairly and equitably the Group ensures that discussions are centred on
in order to enable them to exercise shareholders’ rights and company information that has already been announced
have the opportunity to communicate their views on matters via SGXNET or has been deemed non-material or
affecting the company. The company gives shareholders a non-price sensitive;
balanced and understandable assessment of its • The Company reports its financial results half yearly
performance, position and prospects. and webcasts results briefings ‘live’ to cater to global
audiences. The full financial statements, press release,
Principle 12 management discussion and analysis and presentation
The company communicates regularly with its shareholders materials provided at the briefings are disseminated
and facilitates the participation of shareholders during through the SGXNET outside trading hours. They are also
general meetings and other dialogues to allow shareholders posted on the Company’s website (olamgroup.com) and
to communicate their views on various matters affecting distributed by email to subscribers and investors who have
the Company. consented to receive the Group’s news alerts;
Principle 13 • The Company also provides relevant updates on strategy
and operating and financial conditions as appropriate;
The Board adopts an inclusive approach by considering and
• In addition to results briefings, the Group holds media
balancing the needs and interests of material stakeholders,
and analysts’ conferences and teleconference calls,
as part of its overall responsibility to ensure that the best
which are also webcast live to communicate material
interests of the Company are served.
corporate developments;
The Group Investor Relations team has lead responsibility • The Group’s Investor Relations website at olamgroup.com/
for enhancing investor communication. The Group CEO, investors serves as a central resource for disseminating
Group CFO and the Senior Management Team also play an salient and timely information – Company announcements,
active role in investor relations activities in consultation with news, investor presentations, webcasts, transcripts of
the Board and, regarding environmental, social and earnings conference calls, historical financial information
governance matters, with the Global CRSC Team. on spreadsheets, annual reports, upcoming events,
shareholding structure, answers to investors’ frequently
Enhancing investor communication asked questions and dividend information can all be
Communicating with shareholders, investors and analysts found on the website. Contact details for investors to
(collectively referred to as the ‘Investing Community’) is key submit their feedback and email questions to the Group
to improving the understanding and knowledge of a Investor Relations team are also available.
company’s business and activities. In recognition of this,
the Group continually strives to enhance its communication Following the re-organisation of the Group, both ofi
with investors. and Olam Agri each have their own dedicated websites.
These provides investors with a comprehensive resource of
Two-way communication between the Company and the information for the relevant operating group, including its
Investing Community is encouraged wherever possible to board of directors, senior leadership team, details of its
ensure that the views and requirements of the latter are businesses, products and solutions, to help investors further
better understood and taken into account during the understand the Group’s activities and unique strengths.
Group’s decision-making process.
The Group regularly provides the Investing Community and
key intermediaries (including financial media, brokers
and independent research organisations) with information
regarding the Group’s corporate strategy, its financial and
non-financial performance and its various environmental,
social and governance developments. Every effort is made to
ensure all information disclosed is clear and concise so that
informed judgements on the Company can be made.

Olam Group Limited Annual Report 2023 189

Managing stakeholder relationships

Engaging the investing community

Investor Relations events in 2023
Date Event Format

10 January Media and Analysts Conference on the Proposed Listing and Demerger Hybrid Meeting and Live Webcast
of Olam Agri
27 February Media and Analysts Conference on Second-Half and Full Year 2022 results
Hybrid Meeting and Live Webcast
29 March Extraordinary General Meeting on the Proposal Disposal, Dilution andHybrid Meeting and
Capital Reduction of Olam Agri Electronic Voting
25 April Second Annual General Meeting Hybrid Meeting and
Electronic Voting
7 June SGX-Maybank Securities Singapore Corporate Day 2023 In-person Group and
One-on-one meetings
11 August Media and Analysts Conference on Half Year 2023 results Hybrid Meeting and Live Webcast
6 September CGS-CIMB 2nd Regional Consumer & E-Commerce Virtual Conference 2023 Group Virtual Call and Sideline
In-person Meetings with Investors

Outside of earnings and corporate development briefings, 00%

The chart below details the Group’s shareholding structure.
the Company holds meetings, telephone and video
conference calls with the Investing Community to facilitate
their understanding of the Group’s business model and
growth strategies. The Company also undertakes investment
roadshows and participates in relevant investment
conferences on a selective basis, both in person and virtually.
Participation in roadshows and investment conferences may
be increased at times to help communicate key messages
and/or address any market concerns.
As a general rule, the Group endeavours to accommodate
requests from the Investing Community for meetings or calls
Temasek: 51.46%
to discuss Group-related matters, provided the Company is
not in a closed period, such as prior to the issue of financial Mitsubishi Corporation: 14.54%
results. Provided the Company is in a position to do so, the Kewalram Chanrai Group: 6.89%
Board and management team will always look to respond to
investors regarding a particular matter or concern. Directors: 4.43%

Other institutional and public: 22.68%

Web, social media, video and mobile applications are also
utilised to engage with the Investing Community. Investor Note: As of end 2023, about 7.3% of total issued share capital was held by
surveys, perception studies on specific issues as well as institutional investors.
outreach programmes conducted or overseen by the Investor
Relations team are key tools for obtaining feedback on the Encouraging greater shareholder
Company’s strategy and direction – feedback from the
Investing Community plays a key role when strategic plans
participation at AGMs
are being reviewed. The Company promotes fair and equitable treatment of
all shareholders.
Employee and retail shareholders
All shareholders enjoy rights as stipulated under the Singapore
The Investor Relations team facilitates communication with Companies’ Act and the Constitution of the Company.
the Group’s employees and retail shareholders via the These rights include, among others, the right to participate
Group’s employee intranet, workplace and shareholder in profit distributions and the right to attend and vote at
communication services provided by the Securities Investors’ Annual General Meetings (AGMs). Ordinary shareholders are
Association of Singapore (SIAS) respectively. entitled to attend and vote at the AGM by person or proxy.
Shareholder base Indirect investors who hold Olam shares through a nominee
company or custodian bank or through a CPF agent bank
The Group benefits from having a diverse and supportive
may attend and vote at the AGM. Shareholders are informed
shareholder base. Changes in the shareholder base are
of the details of AGMs, including time and place, via circulars
regularly tracked to ensure the Company’s investor
and notices published in the newspapers.
engagement and targeting programmes remain relevant
and appropriate. An electronic database of the Investing The Company’s AGMs are held in Singapore’s city centre,
Community is maintained. This facilitates the monitoring of making them easily accessible for most shareholders.
investor meetings held and the measuring of the frequency, Board members, including the Chairman of all Board
quality and impact of any conversations. Committees and key executives of the Senior Management
Team, attend the AGM. The external auditors are also
present to address shareholder queries.

190 olamgroup.com
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The AGM serves as a forum for two-way communication The Board members present at the Second AGM were:
between the Company and its shareholders – it is an
Chair of the Board and Board Committees
opportunity for the Board and Senior Management Team to
communicate directly with shareholders and for shareholders Lim Ah Doo, Chair of the Board, BSC, NRC and CIC
to ask questions and share their views on the Company. Yap Chee Keong, Chair of the AC
During the AGM, the Group CEO delivers a presentation that Marie Elaine Teo, Chair of the BRC
provides shareholders with an update on the Group’s Nihal Vijaya Devadas Kaviratne CBE, Chair of the CRSC
financial performance and progress made over the course of
the year under review. Board Members
The Group is continually looking to improve the effectiveness Kazuo Ito, Non-Executive Director
of its AGMs. In line with this, the Company has adopted Sunny George Verghese, Group CEO and Executive
a hybrid format for AGMs and other general meetings. Director
This follows the success of the Group’s Extraordinary Nagi Adel Hamiyeh, Non-Executive Director
General Meeting in March 2023 which was held both in
Ajai Puri (Dr), Non-Executive and Independent Director
person and by electronic means.
Hideyuki Hori, Non-Executive Director
Voting on resolutions at AGMs Absent with apology:
Matters requiring shareholder approval, such as the Joerg Wolfgang Wolle (Dr), Non-Executive and Independent Director
re-election of Directors and the approval of Directors’ fees,
are treated as distinct subjects and are therefore submitted The independent scrutineer for the Second AGM was
to shareholders at the AGM as separate resolutions. RHT Governance, Risk & Compliance (Singapore) Pte. Ltd..
Sufficient time is allocated to allow shareholders to ask
questions and raise issues when considering each Dividend policy
tabled resolution. The Company does not have a fixed dividend policy.
Since 2011, electronic poll voting has been utilised to provide The Directors seek to recommend dividends consistent with
greater transparency and improve the efficiency of the the Company’s overall governing objective of maximising
voting system – shareholders who are present in person intrinsic value for its shareholders. As a practice, the
or represented at the meeting are entitled to vote on a Company provides an explanation on the dividend
one-share, one-vote basis on each of the resolutions by poll, recommended at the AGM in the explanatory notes of the
using an electronic voting system. Notice to AGM. Please refer to the explanatory note on of
this report for more information.
Voting and vote tabulation procedures are declared and
presented to shareholders in a video before the AGM Principle 13
proceeds. An independent scrutineer is appointed by the The Board adopts an inclusive approach by considering and
Company to count and validate the votes at the AGM with balancing the needs and interests of material stakeholders,
the results of all votes cast for and against in respect of each as part of its overall responsibility to ensure that the best
resolution, including abstaining votes, instantaneously interests of the Company are served.
displayed at the meeting and announced on SGXNET after
the AGM. In keeping with the wide range of geographies in which
the business has a presence and the activities undertaken,
Shareholders are given the opportunity to ask questions or the Group’s stakeholder base is broad and diverse.
raise issues which are recorded and detailed in the minutes. Geographies in which the Group has an operational
Since 2019, the minutes of all general meetings are available presence include both developed and emerging markets.
to view on the Company’s website (olamgroup.com/investors). Activities undertaken include growing, sourcing, trading,
processing, logistics and distributing agricultural food,
Second AGM of Olam Group Limited industrial raw materials, food ingredients and solutions.
The Company’s second AGM followed the hybrid format, As many of these activities may be classified as being
meaning it was held both in-person and electronically. ‘high risk’ in terms of sustainability, engaging and working
Shareholders or duly appointed proxies were able to attend effectively with stakeholders at every level of the Group
the AGM in person or participate through the ‘live’ stream – and across all businesses and geographies are key to the
participants were able to observe and/or listen to the Group’s long-term success and are therefore priorities for
proceedings, ask questions and vote in real-time via the Group.
electronic means. Shareholders were also able to appoint the
Chairman of the Meeting as proxy to vote on their behalf.
Prior to the AGM, a summary booklet was mailed to those
shareholders with a registered address in Singapore, along
with an announcement that was released on SGXNET, which
set out the information on pre-registration, submission of
questions and voting at the second AGM, including CPF and
SRS investors.

Olam Group Limited Annual Report 2023 191

Managing stakeholder relationships

Our stakeholders include: Material contracts

• Employees and contract workers; There were no material contracts involving the interests of
• Investors; any Director or controlling shareholder entered into by the
• Large and small-scale farmer suppliers; Company or any of its subsidiaries. In addition, no material
contracts have been subsisted since the end of the year
• Non-farmer suppliers;
ended 31 December 2023.
• Local communities in which we operate;
• Customers ranging from multi-national brands and Interested person transactions
retailers to SMEs; All transactions with interested persons are reviewed by the
• Campaigning NGOs; internal auditors and reported to the Audit Committee (AC)
• Technical NGOs who are often also partners; for approval. The transactions are carried out on normal
• Financiers, including Development Finance Institutions; commercial terms and are not prejudicial to the interests of
• Governments; the Company or its minority shareholders. The Company’s
disclosures in respect of interested person transactions (IPT)
• Regulatory bodies, such as the commodity exchanges;
for the year ended 31 December 2023 are as follows:
• Industry standards bodies;
• Trade associations; FY 2023
Parties S$
• Certification partners;
Singapore Telecommunications Limited 111,018
• Foundations; and
MS Commercial Pte Ltd 5,198,380
• Research institutions.
DBS Bank Limited 3,524,529
Details on how the Group engages with its key stakeholders, Standard Chartered Bank 1,264,328
the various types of partnerships that are in place and the
material issues and areas that matter to Olam’s stakeholders
None of the above transactions with the same interested
can be found in the Strategic Report section of this report.
person amounts to 3% or more of the group’s latest audited
Dealing in securities net tangible assets.
Olam is committed to transparency, fairness and equity in In the event that any of the AC members has an interest in
its dealings with all its shareholders. The Group adheres to an IPT under review or any business or personal connection
all laws and regulations that govern a company that is listed with the parties or any of its associates, the relevant AC
and trading on the SGX-ST. member shall abstain from any decision-making procedure
The Group has in place an established policy for dealings in in respect of that IPT, and the review and approval of that
the securities of the Company by its Directors and IPT will be undertaken by the remaining members of the
employees, which is based on the SGX-ST Listing Rules. AC where applicable. If there is only one member of that
The policy sets out the implications of insider trading and approving authority or where all the members of the relevant
provides guidance on dealings. approving authority of the IPT are conflicted, the approval
from the next higher approving authority shall be sought.
The policy states that:
Shareholders of the Company who are interested persons
• The Company, its Directors and employees must not of an IPT shall also abstain from voting their shares on a
deal in the Company’s securities at any time after a resolution put to the vote of shareholders in relation to the
price-sensitive development has occurred, or has been approval of such IPT. Directors who are deemed an interested
the subject of a decision, until the price-sensitive decision person of an IPT that requires the approval of shareholders
has been publicly announced; will abstain from voting his/her holding of shares (if any) on
• The Group, its Directors and executives are not permitted any resolution put to the vote of shareholders in relation to
to deal in the Company’s securities one month prior to the the approval of any IPT. Directors will also decline to accept
publication of the half-yearly and annual financial results. appointment as proxy for any shareholder to vote in respect
The no-dealing period ends at the close of trading on the of such resolution unless the shareholder concerned shall
date of the announcement of the relevant results. have given specific instructions in his/her proxy form as to
Directors and employees of the Company are notified of the manner in which his/her votes are to be cast in respect of
close periods for dealing in the Company’s securities as such resolution.
well as any special dealings restriction that may be
imposed from time to time.
• Directors who deal in the shares and any other
securities of the Company are required to notify the
Company within two business days of becoming aware
of the transaction.
Directors and employees are encouraged that personal
investment decisions should be geared towards the
long term. Short-term speculative trading in the Company’s
securities is discouraged.

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Financial report
194 Director’s statement
199 Independent Auditor’s report
202 Consolidated Profit and Loss Account
203 Consolidated Statement of Comprehensive Income
204 Balance Sheet
205 Statements of Changes in Equity
208 Consolidated Cash Flow Statement
210 Notes to the Financial Statements
269 Corporate information
270 Shareholding information
272 Notice of Annual General Meeting
280 Addendum to the Annual Report 2023
286 Appendix 1 to the Addendum
Proxy form

Olam Group Limited Annual Report 2023 193

 report
Financial report

Directors’ statement
Directors’ statement
Financial report

Directors’ statement

The directors are pleased to present their statement to the members together with the audited consolidated financial
statements of Olam Group Limited (the ‘Company’) and its subsidiary companies (the ‘Group’) and the balance sheet and
statement of changes in equity of the Company for the financial year ended 31 December 2023.
1. Opinion of the directors
In the opinion of the directors,
i. the financial statements set out on pages 202 to 268 are drawn up so as to give a true and fair view of the financial
position of the Group and of the Company as at 31 December 2023, changes in equity of the Group and of the
Company, the financial performance and the cash flows of the Group for the financial year ended on that date;
and
ii. at the date of this statement there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they fall due.
2. Directors
The director of the Company in office at the date of this statement is:-
Lim Ah Doo
Sunny George Verghese
Nihal Vijaya Devadas Kaviratne CBE
Yap Chee Keong
Marie Elaine Teo
Joerg Wolfgang Wolle (Dr.)
Ajai Puri (Dr.)
Nagi Adel Hamiyeh
Shuji Kobayashi (Appointed on 5 May 2023)
Yuji Tsushima (Appointed on 4 March 2024)
3. Arrangements to enable directors to acquire shares and debentures
Except as disclosed in this report, neither at the end of nor at any time during the financial year ended 31 December
2023 was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the
directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or
any other body corporate.
4. Directors’ interests in shares and debentures
According to the register of the directors’ shareholdings, none of the directors holding office at the end of the financial
year had any interest in the shares or debentures of the Company or its related corporations, except as follows:
Held in the name of the director or nominee Deemed interest
As at 1.1. 2023 As at 1.1.2023
or date of or date of
appointment, As at As at appointment, As at As at
Name of directors if later 31.12.2023 21.1.2024 if later 31.12.2023 21.1.2024
The Company
Olam Group Limited
(a) Ordinary shares
Lim Ah Doo 1 423,800 520,400 520,400 – – –
Sunny George Verghese 1 166,017,944 167,131,277 167,131,277 – – –
Nihal Vijaya Devadas Kaviratne CBE 373,188 399,488 399,488 – – –
Yap Chee Keong 1 167,571 198,371 198,371 – – –
Marie Elaine Teo 143,100 173,900 173,900 – – –
Joerg Wolfgang Wolle (Dr.) 1 44,298 63,298 63,298 – – –
Ajai Puri (Dr.) 1 59,994 83,194 83,194 – – –

1. Held in trust by a trustee or nominee on behalf of the director.

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4. Directors’ interests in shares and debentures continued

Held in the name of the director or nominee Deemed interest
As at 1.1. 2023 As at 1.1.2023
or date of or date of
appointment, As at As at appointment, As at As at
Name of directors if later 31.12.2023 21.1.2024 if later 31.12.2023 21.1.2024
Subsidiaries of the Company’s ultimate
holding company

Temasek Group of companies

(a) Mapletree Logistics Trust Management Ltd
(Units in Mapletree Logistics Trust)
Lim Ah Doo 1 215,200 215,200 215,200 – – –

(b) Singapore Technologies Engineering Ltd

(Ordinary Shares)
Lim Ah Doo 1 99,900 126,200 126,200 – – –

(c) Starhub Ltd

(Ordinary Shares)
Nihal Vijaya Devadas Kaviratne CBE 178,800 107,000 107,000 – – –

(d) Mapletree Industrial Trust Management Ltd.

(Units in Mapletree Industrial Trust)
Marie Elaine Teo 11,800 11,800 11,800 – – –

(e) Astrea IV Pte Ltd

(4.35% bonds due 2028)
Yap Chee Keong 250,000 – – – – –

(f) Astrea VI Pte Ltd

(3.00 % bonds due 2031)
Yap Chee Keong 30,000 30,000 30,000 – – –

(g) Ascott Residence Trust

(3.88% fixed rate perpetual securities)
Yap Chee Keong 250,000 250,000 250,000 – – –

(h) Musel Private Trust (Unit holdings)

Marie Elaine Teo 800 800 800 – – –

(i) Mapletree Real Estate Advisors Pte. Ltd.

(Unit holdings in Mapletree Europe Income Trust
(held through ADDX)
Marie Elaine Teo 1 1,655 1,655 1,655 – – –

(j) Mapletree US Logistics Private Trust

(MUSLOG)
Marie Elaine Teo 300 300 300 – – –

(k) Mapletree China Logistics Investment Private

Fund (MCLIP)
Marie Elaine Teo – 200 200 – – –

1. Held in trust by a trustee or nominee on behalf of the director.

Olam Group Limited Annual Report 2023 195

Olam Group Limited Annual Report 2023 195

Olam Group Limited Annual Report 2023 195
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Directors’
Directors’ statement continued
statement
Financial report continued

Directors’ statement continued

5. Share option scheme and share grant plan

These share plans are administered by the Nomination & Remuneration Committee (“NRC”), which comprises the
following directors and co-opted member:-
Lim Ah Doo
Yap Chee Keong
Joerg Wolfgang Wolle (Dr.)
Shuji Kobayashi
Chan Wai Ching (Co-opted)
Olam Group Share Gra nt Plan (“OG SGP”)
The Company had adopted the Olam Group Share Grant Plan (the ‘OG SGP’) at the Extraordinary Annual General
Meeting on 18 February 2022 as part of Scheme of Arrangement exercise that was completed subsequently on 15 March
2022 with Olam Group Limited taking over the listing entity status on SGX-ST from Olam International Limited as part
of the group re-organisation.
The OG SGP helps retain staff whose contributions are essential to the well-being and prosperity of the Group and to
give recognition to outstanding employees and executive directors of the Group who have contributed to the growth of
the Group. The OSGP gives participants an opportunity to have a personal equity interest in the Company and will help
to achieve the following positive objectives:
• motivate participants to optimise their performance standards and efficiency, maintain a high level of contribution to
the Group and strive to deliver long-term shareholder value;
• align the interests of employees with the interests of the Shareholders of the Company;
• retain key employees and executive directors of the Group whose contributions are key to the long-term growth and
profitability of the Group;
• instil loyalty to, and a stronger identification by employees with the long-term prosperity of, the Company; and
• attract potential employees with relevant skills to contribute to the Group and to create value for the Shareholders
of the Company.
There was no issuance of share grants under the OG SGP in the current financial year ended 31 December 2023.
Jiva Employee Optio n Plan (“JEOP”)
Jiva AG Pte. Ltd. (“Jiva”), an indirect subsidiary of the Company, has implemented the Jiva Employee Option Plan (the
“JEOP”) which was approved and adopted by the shareholders of Jiva on 19 April 2021.
JEOP was set up to provide its employees with an opportunity to share in the growth in the value of Jiva and to encourage
them to improve the performance of Jiva and its subsidiaries (the "Jiva Group") and Jiva's return to shareholders; and
enable Jiva to attract and retain skilled and experienced employees and motivate them to contribute to the success of the
Jiva Group. Participation in the JEOP is restricted to directors and employees of the Jiva Group selected by the Jiva Board
of Directors administering the JEOP ("Eligible Person"). Controlling shareholders of Jiva and their associates are not eligible
to participate in the JEOP.
The total number of shares in the capital of Jiva which may be issued or delivered pursuant to the options granted under
the JEOP on any date shall not exceed 15% of the total number of Jiva Shares (excluding any treasury shares and
subsidiary holdings) on the day preceding that date. Until options vest and are exercised, participants will have no interest
in the underlying Jiva shares, and options will not carry any shareholder rights (such as voting or dividend rights).
Jiva had granted an aggregate of 5,917,000 options under the JEOP to 185 Eligible Persons since the adoption of the
plan. At the end of the current financial year, 4,335,718 options remain outstanding for 159 Eligible Persons. During the
current financial year, the aggregate number of new shares issued pursuant to the JEOP did not exceed 15% of the
issued share capital of Jiva.

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5. Share option scheme and share grant plan continued

Ter rascope Employee Option Plan (“ TEOP”)
Terrascope Pte. Ltd. (“Terrascope”), an indirect subsidiary of the Company, has implemented the Terrascope Employee
Option Plan (the “TEOP”) which was approved and adopted by the shareholders of Jiva on 22 August 2022.
TEOP was set up to provide its employees with an opportunity to share in the growth in the value of Terrascope and to
encourage them to improve the performance of Terrascope and its subsidiaries (the "Terrascope Group") and Terrascope's
return to shareholders; and enable Terrascope to attract and retain skilled and experienced employees and motivate them
to contribute to the success of the Terrascope Group. Participation in the TEOP is restricted to directors and employees of
the Terrascope Group selected by the Terrascope Board of Directors administering the TEOP ("Eligible Person").
Controlling shareholders of Terrascope and their associates are not eligible to participate in the TEOP.
The total number of shares in the capital of Terrascope which may be issued or delivered pursuant to the options
granted under the TEOP on any date shall not exceed 15% of the total number of Terrascope Shares (excluding any
treasury shares and subsidiary holdings) on the day preceding that date. Until options vest and are exercised,
participants will have no interest in the underlying Terrascope shares, and options will not carry any shareholder rights
(such as voting or dividend rights).
Terrascope had granted 2,380,000 options under the TEOP to 21 Eligible Persons since the adoption of the plan. At the
end of the current financial year, the number of outstanding options and eligible persons remain unchanged. During
the current financial year, the aggregate number of new shares issued pursuant to the TEOP did not exceed 15% of the
issued share capital of Terrascope.
M ind sp r in t E m p l o y ee Option Plan (“ MEOP”)
Mindsprint Pte. Ltd. (“Mindsprint”), an indirect subsidiary of the Company, has implemented the Mindsprint Employee
Option Plan (the “MEOP”) which was approved and adopted by the shareholders of Mindsprint on 20 December 2023.
MEOP was set up to provide its employees with an opportunity to share in the growth in the value of Mindsprint and to
encourage them to improve the performance of Mindsprint and its subsidiaries (the "Mindsprint Group") and
Mindsprint's return to shareholders; and enable Mindsprint to attract and retain skilled and experienced employees and
motivate them to contribute to the success of the Mindsprint Group. Participation in the MEOP is restricted to
employees of the Mindsprint Group selected by the Mindsprint Board of Directors administering the MEOP ("Eligible
Person"). Controlling shareholders of Mindsprint and their associates are not eligible to participate in the MEOP.
The total number of shares in the capital of Mindsprint which may be issued or delivered pursuant to the options
granted under the MEOP on any date shall not exceed 15% of the total number of Mindsprint Shares (excluding any
treasury shares and subsidiary holdings) on the day preceding that date. Until options vest and are exercised,
participants will have no interest in the underlying Mindsprint shares, and options will not carry any shareholder rights
(such as voting or dividend rights).
There has been no options granted under the MEOP for the year ended 31 December 2023.
Restricted sh are awards granted under Olam Inte rna tio na l Limi ted Sh a re G ra nt Pl a n
Olam International Limited (“OIL”) had awarded Restricted Share Awards (“RSA”) to eligible employees pursuant to the
terms of the Olam Share Grant Plan adopted on 30 October 2014 and amended on 20 May 2020 and prior to its
cancellation when the Scheme became effective on 15 March 2022 (“Scheme Effective Date”). For the RSA granted in
FY2018, FY2019, FY2020 and FY2021 which would normally vest on 1 April 2022, the Olam International Nomination and
Remuneration Committee (“Olam NRC”) has approved their vesting by early March 2022. For the balance RSA, the
NRC has determined that a trust be set up by Olam Holdings to be used to satisfy the RSA and that unvested Shares
(“OG Shares”) under the RSA shall be issued and/or transferred by OIL to the trustee prior to the Scheme Effective Date
to hold under the trust. The trustee will hold such OG Shares on trust so as to satisfy the outstanding RSA. The said OG
Shares will be released by the trustee to the respective RSA holders in accordance with the original vesting schedule of
the RSA, and subject to the same conditions for vesting as provided in the RSA and under the Olam SGP, save for limited
exceptions in which the continued employment requirement may not apply.
52,887,753 OG Shares were issued and/or transferred by OIL to the trust when the Scheme became effective. As at the
current financial year end, 34,434,687 OG Shares remained unvested.

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Financial report
Directors’
Directors’ statement continued
statement
Financial report continued

Directors’ statement continued

6. Audit and Risk Committee

This section is to be read in conjunction with the additional disclosures on the ARC provided in the Corporate
Governance section of the Company’s Annual Report to shareholders.
The Company had announced on 28 December 2023 that as of 1 January 2024, the Audit Committee (the “AC” or the
Committee”) was combined with the Board Risk Committee to form the Audit and Risk Committee (the “ARC” or
“Committee”). The ARC comprises five Non-Executive directors of which majority are independent. The members of the
AC are Mr. Yap Chee Keong (Chairman), Mr. Nihal Vijaya Devadas Kaviratne CBE, Ms. Marie Elaine Teo, Mr. Shuji
Kobayashi and Dr. Ajai Puri.
The ARC performed its functions in accordance with the Companies Act 1967, the Listing Manual of the SGX-ST and the
Code of Corporate Governance 2018, which include, amongst others, the following:
• Review of the Group’s half-yearly and annual financial statements and quarterly business performance for
recommendation to the Board;
• Review of the salient accounting matters and legal and regulatory matters that may have a material impact on the
financial statements and related compliance policies and programmes;
• Review, with the external auditors, their scope of work, audit plans, the results of their examinations and evaluation
of the Group’s internal accounting control systems, the adequacy of the Company’s system of accounting controls,
the cooperation given by the Management of the Company to the external auditors;
• Review the adequacy of the Group’s material internal controls, including financial, operational, compliance and
information technology controls and risk management systems through the integrated risk assurance framework;
• Review the assurance given by the Group CEO and GCFO in relation to the adequacy and effectiveness of the
Group’s risk management and internal control systems;
• Review, with the internal auditors, their scope of work and organisation, their audit plans, quarterly report of the
results of their audits of the business, operations and functions and whistle-blowers’ reports;
• Review the adequacy, independence and effectiveness of the internal auditors;
• Review the adequacy, independence and objectivity of the external auditors; and
• Review the interested person transactions (as defined in Chapter 9 of the Listing Manual of the SGX-ST).

During the year under review, the ARC:

• held meetings with the external auditors and internal auditors in separate executive sessions to discuss any matters
that these groups believed should be discussed privately with the ARC;
• made recommendations to the board of directors in relation to the external auditor’s reappointment; and
• reported key issues discussed and actions taken from the ARC meetings to the board of directors with such
recommendations as the ARC considered appropriate.

The ARC has reviewed and considered the audit and non-audit arrangements and services provided by Ernst & Young
LLP and considered the nature and extent of such arrangements and services performed by the external auditors. The
Committee has opined that these arrangements and services would not affect the independence of Ernst & Young LLP.
The ARC has recommended to the Board the re-appointment of Ernst & Young LLP as independent external auditor of
the Company at the forthcoming Annual General Meeting of the Company on 25 April 2024.
7. Auditor
Ernst & Young LLP have expressed their willingness to accept re-appointment as independent external auditor.

On behalf of the board of directors,

Lim Ah Doo
Director

Sunny George Verghese

Director

22 March 2024

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Financial

Independent Auditor’s
Independent Auditor’sreport
Financial report
report report

Independent Auditor’s report

For the financial year ended 31 December 2023
Forthe
To the financialof
year ended 31 December 2023
For theMembers
To the Members
Olam
financial year Group
ended
of Olam
Limited 2023
31 December
Group Limited
To the Members of Olam Group Limited

Report on the financial statements

We have audited the accompanying financial statements of Olam Group Limited (the ‘Company’) and its subsidiaries
(collectively, the ‘Group’) set out on pages 202 to 268 which comprise the balance sheets of the Group and the Company
as at 31 December 2023, the statements of changes in equity of the Group and the Company and the consolidated profit
and loss account, consolidated statement of comprehensive income and consolidated cash flow statement of the Group for
the financial year then ended, and a material accounting policy information and other explanatory information.
In our opinion, the accompanying consolidated financial statements of the Group, the balance sheet and the statement of
changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act 1967 (the
“Act”) and Singapore Financial Reporting Standards (International) in Singapore (the “SFRS(I)s”) so as to give a true and fair
view of the consolidated financial position of the Group and the financial position of the Company as at 31 December 2023
and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group
and changes in equity of the Company for the year ended on that date.
Basis for op inion
We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (ACRA)
Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (the “ACRA Code”) together with
the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
K ey a u d i t m a tt ers
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled our responsibilities described in the Auditor’s responsibilities for the audit of the financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our
audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion
on the accompanying financial statements.
1. Impairment assessment of property, plant and equipment, goodwill and indefinite/finite life intangible assets
The Group has significant property, plant and equipment, goodwill and indefinite/finite life intangible assets as
disclosed in Notes 11 and 12 to the financial statements. Management performs periodic and annual impairment reviews
of goodwill, intangible assets with indefinite/finite life and impairment assessments for identified property, plant and
equipment where there are indications of impairment. Recoverable values of the property, plant and equipment,
goodwill and indefinite/finite life intangible assets are determined based on fair value less costs to sell or value-in-use
assessment where relevant and are performed by management with the help of independent professional valuers where
applicable. These assessments involve judgement exercised in fair value less costs to sell and in value-in-use
assessments, future revenues (yield), operating costs, growth rates and discount rates. The estimates and assumptions
used in the cashflow projections which form the basis of recoverable amounts require significant judgement due to the
inherent estimation uncertainty. As such, we have considered this to be a key audit matter.
For fair value less costs to sell calculation where independent professional valuers are involved, we have reviewed, with
the assistance of our internal valuation specialist where required, the competence, capabilities and objectivity of the
independent professional valuers, and evaluated the appropriateness of the fair valuation report prepared by
independent professional valuers.
For the value-in-use assessment, we have obtained the business units’ cash flow forecasts assessment prepared by
management and evaluated the reasonableness of management’s key assumptions including forecast cash flows
focusing on revenues and earnings before interest, tax, depreciation and amortisation (‘EBITDA’). We also assessed the
appropriateness of discount rates with the assistance of our internal valuation specialist where required and growth
rates to historical and market trends to assess the reliability of management’s forecast.
We also reviewed the adequacy of the Group’s disclosures in relation to property, plant and equipment, goodwill and
indefinite/finite life intangible assets as disclosed in Notes 11 and 12 to the financial statements.

Olam Group Limited Annual Report 2023 199

Olam Group Limited Annual Report 2023 199

Olam Group Limited Annual Report 2023 199
 report
Financial report
Independent
Independent Auditor’s report
Auditor’s
Financial report reportcontinued
For
For the financial
the financial year ended
year ended 31December
31 December2023
2023
Independent
To the MembersAuditor’s
of Olamreport continued
Group Limited
To
Forthe
theMembers
financial of Olam
year Group
ended Limited 2023
31 December
To the Members of Olam Group Limited

Key audit matters continued

2. Valuation of biological assets
The Group operates various farms and plantations for which the dairy cows, poultry, agricultural produce (‘fruits on trees’)
and annual crops are accounted for at fair value. These significant biological assets are fair valued by management
and/or independent professional valuers engaged by the Group using industry/market accepted valuation methodology
and approaches. As the measurement of fair value involves judgement on the assumptions and estimates used considering
that climate risks factors could have an impact on the key assumptions, we have considered this to be a key audit matter.
We obtained the valuations of biological assets prepared by management and/or independent professional valuers
engaged by the Group. We reviewed the fair value reports, together with our internal valuation specialists where
required, for appropriateness of the fair value methodology used and reasonableness of the key assumptions used,
including forecast cash flows, discount rates, yield rates for the plantations and market prices of the fruits or nuts/crop
and livestock. To the extent where independent professional valuers are involved, we reviewed the competence,
capabilities and objectivity and evaluated the appropriateness of the valuation models used by independent
professional valuers.
We also reviewed the adequacy of the Group’s disclosures in relation to biological assets as disclosed in Note 13 to the
financial statements.
3. Valuation of financial instruments
The Group entered into various financial instruments which are required to be carried at fair value as disclosed in Notes 34 and 35
to the financial statements. These include fair value of financial assets and financial liabilities relating to Level 3 financial
instruments. Estimation uncertainty is high for these financial instruments where significant valuation inputs are unobservable
and judgement is involved on the assumptions and estimates used and therefore, this is considered a key audit matter.
We have reviewed and assessed the controls over identification, measurement and management of valuation risk, and
evaluated the methodologies, inputs and assumptions used by the Group in determining fair values as at year end. We
have evaluated the assumptions and models used or performed an independent valuation to assess the reasonableness
of the computed fair value with the help of our internal valuation specialist where required. The review also included
testing of the evidence supporting significant unobservable inputs utilised in Level 3 measurements in the fair value
hierarchy as outlined in Notes 34 and 35 to the financial statements, which included assessing management’s valuation
assumptions against independent proxy price quotes, recent transactions and other verifiable supporting
documentation.
We have also reviewed the adequacy of disclosures of fair value risks and sensitivities in Notes 34 and 35 to the
financial statement to reflect the Group’s exposure to valuation risk.
Information o ther than the Fina ncial S ta t em e n ts a n d A u d itor ’ s R ep o r t Th er eon
Management is responsible for the other information. The other information in the Annual Report 2023 comprises the
information included in (i) Strategic Report, (ii) Governance Report and (iii) Directors’ Statement (within the Financial Report)
sections, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial
statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated. We have nothing to report in this regard.
Responsibil ities of Ma nagement and Directors for th e Financia l Sta tem en ts
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Act and SFRS(I)s, and for devising and maintaining a system of internal accounting controls sufficient to
provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and
transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair
financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.

200 w w w . ol a m g r ou p . c om

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Financial
report

Aud i tor’s r esp onsib il it ie s fo r th e Aud it of th e Fi na nc ia l Sta t eme nt s

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
R ep o r t on oth er leg a l a n d r eg u l a tor y r eq u irem en ts
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary
corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the
provisions of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is Christopher Wong Mun Yick.

Ernst & Young LLP

Public Accountants and
Chartered Accountants Singapore

22 March 2024

Olam Group Limited Annual Report 2023 201

Olam Group Limited Annual Report 2023 201

Olam Group Limited Annual Report 2023 201
 report
Financial report

Consolidated Profit
Consolidated Profit and
Financial report
andLoss
LossAccount
Account
Consolidated Profit and Loss Account
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023

Group
2023 2022
Note $’000 $’000
Sale of goods and services 4 48,271,991 54,900,977
Other income 5 126,304 93,284
Operating expenses – direct 6 (44,032,505) (50,552,061)
Net gain from changes in fair value of biological assets 13 66,304 90,903
Depreciation and amortisation 10, 11, 12 (721,008) (709,032)
Other expenses 7 (2,169,090) (2,378,571)
Finance income 157,972 103,943
Finance costs 8 (1,291,061) (849,613)
Share of results from joint ventures and associates 1,968 27,355
Profit before taxation 410,875 727,185
Income tax expense 9 (59,878) (175,585)

Profit for the financial year 350,997 551,600

Attributable to:
Owners of the Company 278,721 629,091
Non-controlling interests 72,276 (77,491)
350,997 551,600
Earnings per share attributable to owners of the Company (cents)
Basic 25 6.50 15.59
Diluted 25 6.41 15.37

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 202
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
202 olamgroup.com
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Financial report report
Financial

Consolidated Statement
Consolidated Statement of
Financial report report

Consolidated
Comprehensive
of Statement
Income
Comprehensive Income
of Comprehensive Income
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
Group
2023 2022
$’000 $’000
Profit for the financial year 350,997 551,600

Other comprehensive income

Items that may be reclassified subsequently to profit or loss:
Net gain on fair value changes during the financial year 11,479 17,370
Recognised in the profit and loss account on occurrence of hedged transactions (9,154) (29,967)
Foreign currency translation adjustments (440,872) (305,554)
Share of other comprehensive income of joint ventures and associates 7,003 (15,432)
(431,544) (333,583)

Items that will not be reclassified subsequently to profit or loss:

Net fair value gain on equity instrument at fair value through other comprehensive income – 678

Other comprehensive income for the year, net of tax (431,544) (332,905)
Total comprehensive income for the year (80,547) 218,695
Attributable to:
Owners of the Company (60,644) 295,708
Non-controlling interests (19,903) (77,013)
(80,547) 218,695

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
203 w w w . ol a m g r ou p . c om
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 203
Olam Group Limited Annual Report 2023 203
 report
Financial report

Balance Sheet
Sheet
Financial report

Balance Sheet
As at 31 December 2023
As at 31 December 2023
As at 31 December 2023

Group Company
2023 2022 2023 2022
Note $’000 $’000 $’000 $’000
Non-current assets
Property, plant and equipment 11 6,082,671 6,020,132 – –
Right-of-use assets 10 791,032 846,340 – –
Intangible assets 12 2,537,749 2,606,435 – –
Biological assets 13 557,025 559,091 – –
Subsidiary companies 14 – – 6,153,355 6,242,838
Deferred tax assets 9 321,828 263,013 – –
Investments in joint ventures and associates 15 277,383 273,671 – –
Other non-current assets 21 66,039 42,240 – –
10,633,727 10,610,922 6,153,355 6,242,838
Current assets
Amounts due from subsidiary companies (net) 16 – – 643,410 630,906
Trade receivables 17 3,336,467 2,855,510 – –
Margin accounts with brokers 18 – 62,775 – –
Inventories 19 9,810,052 8,947,324 – –
Advance payments to suppliers 20 870,678 582,645 – –
Cash and short-term deposits 33 3,581,626 4,805,556 13,998 16,754
Derivative financial instruments 34 3,952,664 3,178,999 – –
Other current assets 21 1,162,282 891,046 – 5,767
22,713,769 21,323,855 657,408 653,427
Non-current assets held for sale 21 1,145 19,024 – –
22,714,914 21,342,879 657,408 653,427
Current liabilities
Trade payables and accruals 22 (4,989,691) (4,327,189) (3,033) (2,957)
Margin accounts with brokers 18 (189,549) – – –
Borrowings 24 (6,419,392) (5,051,970) – –
Lease liabilities 24 (131,039) (140,766) – –
Derivative financial instruments 34 (3,041,608) (2,033,754) – –
Provision for taxation (261,790) (277,209) – –
Other current liabilities 23 (420,981) (492,177) – –
(15,454,050) (12,323,065) (3,033) (2,957)
Net current assets 7,260,864 9,019,814 654,375 650,470
Non-current liabilities
Deferred tax liabilities 9 (416,512) (527,903) – –
Borrowings 24 (8,893,315) (10,066,752) – –
Lease liabilities 24 (850,125) (886,256) – –
Other non-current liabilities 23 (66,124) (67,114) – –
(10,226,076) (11,548,025) – –
Net assets 7,668,515 8,082,711 6,807,730 6,893,308
Equity attributable to owners of the Company
Share capital 26 6,233,595 6,233,595 6,233,595 6,233,595
Treasury shares 26 (31,046) (6,543) (31,046) (6,543)
Shares held in Trust 26 (62,206) (88,173) – –
Capital securities 26 603,314 603,453 603,314 603,453
Reserves 583,790 916,766 1,867 62,803
7,327,447 7,659,098 6,807,730 6,893,308
Non-controlling interests 341,068 423,613 – –
Total equity 7,668,515 8,082,711 6,807,730 6,893,308

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 204
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
204 olamgroup.com
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Financial

Statements of
of Changes
Changesin
Financial report
inEquity
Equity report

Statements of Changes in Equity

For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023

Attributable to owners of the Company

Foreign
Share Treasury Share held Capital currency Fair value Share-based Total non-
capital shares in trust securities Capital translation adjustment compensation Revenue Total controlling Total
31 December 2023 (Note 26) (Note 26) (Note 26) (Note 26) reserves1 reserves2 reserves3 reserves4 reserves reserves Total interests equity
Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2023 6,233,595 (6,543) (88,173) 603,453 (411,848) (1,631,083) (40,853) 163,580 2,836,970 916,766 7,659,098 423,613 8,082,711
Hyperinflation restatement
to 1 January 2023* – – – – – – – – 1,001 1,001 1,001 – 1,001
At 1 January 2023 (Restated) 6,233,595 (6,543) (88,173) 603,453 (411,848) (1,631,083) (40,853) 163,580 2,837,971 917,767 7,660,099 423,613 8,083,712
Profit for the financial year – – – – – – – – 278,721 278,721 278,721 72,276 350,997
Other comprehensive income
Net gain on fair value changes
during the financial year – – – – – – 11,479 – – 11,479 11,479 – 11,479
Recognised in the profit and
loss account on occurrence
of hedged transactions – – – – – – (9,154) – – (9,154) (9,154) – (9,154)
Foreign currency
translation adjustments – – – – – (348,693) – – – (348,693) (348,693) (92,179) (440,872)
Share of other comprehensive
income of joint ventures
and associates – – – – – 7,003 – – – 7,003 7,003 – 7,003
Other comprehensive income
for the financial year, net of tax – – – – – (341,690) 2,325 – – (339,365) (339,365) (92,179) (431,544)
Total comprehensive income
for the year – – – – – (341,690) 2,325 – 278,721 (60,644) (60,644) (19,903) (80,547)
Contributions by and
distributions to owners
Transfer to share based
compensation reserve on vesting – – 25,967 – – – – (25,967) – (25,967) – – –
Share-based expense – – – – – – – 23,066 – 23,066 23,066 – 23,066
Purchase of treasury shares – (24,870) – – – – – – – – (24,870) – (24,870)
Issue of treasury shares for
director fees – 367 – – – – – – – – 367 – 367
Dividends on ordinary shares
(Note 27) – – – – – – – - (287,714) (287,714) (287,714) – (287,714)
Accrued capital securities
distribution – – – 32,491 – – – – (32,491) (32,491) – – –
Payment of capital securities
distribution – – – (32,630) – – – – – – (32,630) – (32,630)
Total contributions by and
distributions to owners – (24,503) 25,967 (139) – – – (2,901) (320,205) (323,106) (321,781) – (321,781)
Changes in ownership
interests in subsidiaries
Acquisition of non-controlling
interests without a change in
control – – – – (17,582) – – – – (17,582) (17,582) (12,358) (29,940)
Sale of minority stake in
subsidiary without change in
control ^ – – – – 67,355 – – – – 67,355 67,355 – 67,355
Dividend paid to Minority
Shareholder – – – – – – – – – – – (53,229) (53,229)
Proceeds from Non-Controlling
Interest – – – – – – – – – – – 2,945 2,945
Total changes in ownership
interests in subsidiaries – – – – 49,773 – – – – 49,773 49,773 (62,642) (12,869)
Total transactions with owners
in their capacity as owners – (24,503) 25,967 (139) 49,773 – – (2,901) (320,205) (273,333) (272,008) (62,642) (334,650)
At 31 December 2023 6,233,595 (31,046) (62,206) 603,314 (362,075) (1,972,773) (38,528) 160,679 2,796,487 583,790 7,327,447 341,068 7,668,515

* In the current financial year, the Ghana economy was declared to be hyperinflationary. As a result, SFRS(I) 1-29 Financial Reporting in Hyperinflationary
Economies has been applied to Ghana subsidiary company whose functional currency is the Ghanaian Cedi. The results and financial position of the
Group’s Ghana subsidiary company was restated to the measuring unit current at the end of the period, with hyperinflationary gains and losses in respect
of monetary items being reported in the Profit & Loss account under “Other expenses”. Comparative amounts presented in the consolidated financial
statements were not restated in line with SFRS(I) 1-29 requirements. Differences between restatement of opening balances of equity and the non-monetary
items were recognised in opening revenue reserves.
^ This relates to the additional amount of US$50,310,000 (approximately S$67,355,000) received during the year ended 31st December 2023 in relation to a
post-closing adjustment set out in the share purchase agreement on sale of 35.43% minority stake in Olam Agri Holdings Limited to the SALIC International
Investment Company in 2022.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
205 w w w . ol a m g r ou p . c om
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 205
Olam Group Limited Annual Report 2023 205
 report
Financial report
of Changes
Financial report
Statements of ChangesininEquity
Equitycontinued
continued
For the
For the financial
financial year
yearended
ended3131December
December2023
2023
Statements of Changes in Equity continued
For the financial year ended 31 December 2023

Attributable to owners of the Company

Foreign
Treasury Share held Capital currency Fair value Share-based Total non-
Share capital shares in trust securities Capital translation adjustment compensation Revenue Total controlling Total
31 December 2022 (Note 26) (Note 26) (Note 26) (Note 26) reserves1 reserves2 reserves3 reserves4 reserves reserves Total interests equity
Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2022 4,339,545 (114,446) – 906,789 259,292 (1,314,669) (439,255) 144,122 2,989,851 1,639,341 6,771,229 7,448 6,778,677
Hyperinflation restatement
to 1 January 2022 * – – – – – – – – (4,479) (4,479) (4,479) – (4,479)
At 1 January 2022 (Restated) 4,339,545 (114,446) – 906,789 259,292 (1,314,669) (439,255) 144,122 2,985,372 1,634,862 6,766,750 7,448 6,774,198
Profit for the financial year – – – – – – – – 629,091 629,091 629,091 (77,491) 551,600
Other comprehensive income
Net gain on fair value changes
during the financial year – – – – – – 18,048 – – 18,048 18,048 – 18,048
Recognised in the profit and
loss account on occurrence
of hedged transactions – – – – – – (29,967) – – (29,967) (29,967) – (29,967)
Foreign currency
translation adjustments – (5,050) – – – (300,982) – – – (300,982) (306,032) 478 (305,554)
Reclassification of fair value
adjustment reserve to revenue
reserve on derecognition of
long term investment # – – – – – – 410,321 – (410,321) – – – –
Share of other comprehensive
income of joint ventures
and associates – – – – – (15,432) – – – (15,432) (15,432) – (15,432)
Other comprehensive income
for the financial year, net of tax – (5,050) – – – (316,414) 398,402 – (410,321) (328,333) (333,383) 478 (332,905)
Total comprehensive income
for the year – (5,050) – – – (316,414) 398,402 – 218,770 300,758 295,708 (77,013) 218,695
Contributions by and
distributions to owners
Increase in share capital
on account of group
re-organisation (Note 1.1) 1,867,487 – – – (1,867,487) – – – – (1,867,487) – – –
Issue of treasury shares for
Performance Share and
Restricted Share Award (Note 26) – 88,173 (88,173) – – – – – – – – – –
Issue of treasury shares
on exercise of share options 26,564 30,727 – – – – – (30,727) – (30,727) 26,564 – 26,564
Repayment of capital
securities, net of transaction
costs (Note 26(d)) – – – (295,500) – – – – – – (295,500) – (295,500)
Cancellation of treasury shares (1) 1 – – – – – – – – – – –
Share-based expense – – – – – – – 50,185 – 50,185 50,185 – 50,185
Purchase of treasury shares – (6,543) – – – – – – – – (6,543) – (6,543)
Issue of treasury shares for
director fees – 595 – – – – – – – – 595 – 595
Dividends on ordinary shares
(Note 27) – – – – – – – – (326,229) (326,229) (326,229) – (326,229)
Accrued capital securities
distribution – – – 40,943 – – – – (40,943) (40,943) – – –
Payment of capital securities
distribution – – – (48,779) – – – – – – (48,779) – (48,779)
Total contributions by and
distributions to owners 1,894,050 112,953 (88,173) (303,336) (1,867,487) – – 19,458 (367,172) (2,215,201) (599,707) – (599,707)
Changes in ownership
interests in subsidiaries
Sale of minority stake in
subsidiary without change
in control ^ – – – – 1,196,347 – – – – 1,196,347 1,196,347 493,178 1,689,525
Total changes in ownership
interests in subsidiaries – – – – 1,196,347 – – – – 1,196,347 1,196,347 493,178 1,689,525
Total transactions with owners
in their capacity as owners 1,894,050 112,953 (88,173) (303,336) (671,140) – – 19,458 (367,172) (1,018,854) 596,640 493,178 1,089,818
At 31 December 2022 6,233,595 (6,543) (88,173) 603,453 (411,848) (1,631,083) (40,853) 163,580 2,836,970 916,766 7,659,098 423,613 8,082,711

* In 2022, the Turkish economy was declared to be hyperinflationary. As a result, application of SFRS(I) 1-29 Financial Reporting in Hyperinflationary
Economies has been applied to all Turkish subsidiary companies whose functional currency is the Turkish Lira. As a result, the results and financial position
of the Group’s Turkish subsidiary companies were restated to the measuring unit current at the end of the period, with hyperinflationary gains and losses in
respect of monetary items being reported in the Profit & Loss account under “Other expenses”. Comparative amounts presented in the consolidated
financial statements were not restated in line with SFRS(I) 1-29 requirements. Differences between restatement of opening balances of equity and the non-
monetary items were recognised in opening revenue reserves.
# In 2022, the long term investment was fully divested for cash consideration amounting to $31,530,000, resulting in a gain on disposal of $3,407,000 recorded in
capital reserves in the statement of changes in equity. Subsequently, all cumulative fair value adjustment reserves were transferred to revenue reserves.
^ This relates to sale of 35.43% minority stake in Olam Agri Holdings Pte. Ltd. to SALIC International Investment Company for US$1,240,000,000
(approximately $1,710,229,000) in 2022, on which a gain of $1,196,347,000, net of transaction cost, has been recorded in capital reserves in the statement
of changes in equity.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
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The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
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Attributable to owners of the Company

Foreign
Treasury Capital currency Fair value
Share capital shares securities translation adjustment Revenue Total
31 December 2023 (Note 26) (Note 26) (Note 26) reserves2 reserves3 reserves reserves Total
Company $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2023 6,233,595 (6,543) 603,453 (117,623) 4,941 175,485 62,803 6,893,308
Profit for the financial year – – – – – 358,081 358,081 358,081
Other comprehensive income
Net gain on fair value changes during the financial year – – – – 923 – 923 923
Foreign currency translation adjustments – – – (99,735) – – (99,735) (99,735)
Other comprehensive income for the financial year, net of tax – – – (99,735) 923 – (98,812) (98,812)
Total comprehensive income for the year – – – (99,735) 923 358,081 259,269 259,269
Contributions by and distributions to owners
Purchase of treasury shares – (24,870) – – – – – (24,870)
Issue of treasury shares for directors fees – 367 – – – – – 367
Dividends on ordinary shares (Note 27) – – – – – (287,714) (287,714) (287,714)
Accrued capital securities distribution – – 32,491 – – (32,491) (32,491) –
Payment of capital securities distribution – – (32,630) – – – – (32,630)
Total contributions by and distributions to owners – (24,503) (139) – – (320,205) (320,205) (344,847)
Total transactions with owners in their capacity as owners – (24,503) (139) – – (320,205) (320,205) (344,847)
At 31 December 2023 6,233,595 (31,046) 603,314 (217,358) 5,864 213,361 1,867 6,807,730

Attributable to owners of the Company

Foreign
Treasury Capital currency Fair value
Share capital shares securities translation adjustment Revenue Total
31 December 2022 (Note 26) (Note 26) (Note 26) reserves2 reserves3 reserves reserves Total
Company $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2022 –* – – – – – – –*
Profit for the financial year – – – – – 358,921 358,921 358,921
Other comprehensive income
Net gain on fair value changes during the financial year – – – – 4,941 – 4,941 4,941
Foreign currency translation adjustments – – – (117,623) – – (117,623) (117,623)
Other comprehensive income for the financial year, net of tax – – – (117,623) 4,941 – (112,682) (112,682)
Total comprehensive income for the year – – – (117,623) 4,941 358,921 246,239 246,239
Contributions by and distributions to owners
Increase in share capital on account of scheme of arrangement (Note 1.1) 6,233,595 – – – – – – 6,233,595
Purchase of treasury shares – (6,543) – – – – – (6,543)
Transfer of capital securities net of transaction costs (Note 26(d)) – – 892,977 – – – – 892,977
Repayment of capital securities, net of transaction costs (Note 26(d)) – – (295,500) – – – – (295,500)
Dividends on ordinary shares (Note 27) – – – – – (153,705) (153,705) (153,705)
Accrued capital securities distribution – – 29,731 – – (29,731) (29,731) –
Payment of capital securities distribution – – (23,755) – – – – (23,755)
Total contributions by and distributions to owners 6,233,595 (6,543) 603,453 – – (183,436) (183,436) 6,647,069
Total transactions with owners in their capacity as owners 6,233,595 (6,543) 603,453 – – (183,436) (183,436) 6,647,069
At 31 December 2022 6,233,595 (6,543) 603,453 (117,623) 4,941 175,485 62,803 6,893,308

* Amount is less than $1,000

1. Capital reserves
Capital reserves represent the premium paid and discounts on acquisition of non-controlling interests, gain on partial
disposal of subsidiary which did not result in loss of control, residual amount of convertible bonds net of proportionate
share of transaction costs, after deducting the fair value of the debt and derivative component on the date of issuance
and the share of capital reserve of a joint venture.
2. Foreign currency translation reserves
The foreign currency translation reserves are used to record exchange differences arising from the translation of the financial
statements of the Company and the Group’s foreign operations whose functional currencies are different from that of the
Group’s presentation currency as well as the share of foreign currency translation reserves of joint ventures and associates.
3. Fair value adjustment reserves
Fair value adjustment reserves record the portion of the fair value changes on derivative financial instruments
designated as hedging instruments in cash flow hedges that are determined to be effective hedges.
4. Share-based compensation reserves
Share-based compensation reserves represent the equity-settled shares and share options granted to employees. The reserve
is made up of the cumulative value of services received from employees recorded over the vesting period commencing from
the grant date of equity-settled shares and share options and is reduced by the expiry of the share options.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 207
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 207
Olam Group Limited Annual Report 2023 207
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Consolidated Cash
Consolidated Cash Flow
Financial report
FlowStatement
Statement
Consolidated Cash Flow Statement
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023

2023 2022
$’000 $’000
Cash flows from operating activities
Profit before taxation 410,875 727,185
Adjustments for:-
Allowance for doubtful debts 17,970 39,596
Amortisation of intangible assets, depreciation of property, plant and equipment
and depreciation of right-of-use assets 721,008 709,032
Share-based expense 23,066 50,186
Fair value gain on biological assets (Note 13) (66,304) (90,903)
Gain on disposal of joint venture and associate, net (Note 5 and 7) (6,400) (2,804)
Gain on disposal of property, plant and equipment and intangible assets (Note 7) (6,404) (956)
Impairment of investment in joint venture and associate (Note 7) 22 –
Interest income (157,972) (103,943)
Interest expense 1,291,061 849,613
Inventories written down, net (Note 19) 30,489 50,415
Net monetary gain arising from hyperinflationary economies 275 (6,764)
Share of results from joint ventures and associates (1,968) (27,355)

Operating cash flows before reinvestment in working capital 2,255,718 2,193,302

Increase in inventories (1,197,768) (57,577)
Increase in receivables and other current assets (679,035) (47,757)
Increase in advance payments to suppliers (306,708) (40,566)
Decrease in margin account with brokers 253,443 499,092
Increase/(decrease) in payables and other current liabilities 705,221 (618,400)

Cash flows generated from operations 1,030,871 1,928,094

Interest income received 157,972 103,943
Interest expense paid (1,288,125) (853,485)
Tax paid (235,315) (213,952)
Net cash flows (used in)/generated from operating activities (334,597) 964,600

Cash flows from investing activities

Proceeds from disposal of property, plant and equipment 42,870 11,699
Proceeds from disposal of intangible assets 4 –
Purchase of property, plant and equipment (662,974) (783,774)
Purchase of intangible assets (Note 12) (33,689) (27,628)
Acquisition of subsidiaries, net of cash acquired 204 (273,475)
Investment/loan to associates and joint ventures, net (537) 7,434
Proceeds from sale of long term investment – 31,530
Dividends received from associates and joint ventures 5,671 16,797
Sale proceeds and advance received from sale of joint venture and associates 904 291,946
Proceeds from divestment of subsidiary (Note 14) 67,355 1,710,229
Net cash flows (used in)/generated from investing activities (580,192) 984,758

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2023 2022
$’000 $’000
Cash flows from financing activities
Dividends paid on ordinary shares by the Company (287,714) (326,229)
Dividend paid to non-controlling interest shareholder (53,229) –
Acquisition of non-controlling interest (29,940) –
Proceeds from non-controlling interest 2,945 –
Proceeds/(repayment) from borrowings, net 370,462 (519,021)
Repayment of lease liabilities (159,397) (165,696)
Proceeds from issuance of shares on exercise of share options – 26,564
Payment of capital securities, net of distribution (32,630) (48,779)
Repayment (net of proceeds from issue) of capital securities, net of transaction costs – (295,500)
Purchase of treasury shares (24,870) (6,543)
Net cash flows used in financing activities (214,373) (1,335,204)

Net effect of exchange rate changes on cash and cash equivalents (243,718) (176,169)
Net (decrease)/increase in cash and cash equivalents (1,372,880) 437,985
Cash and cash equivalents at beginning of period 4,598,834 4,160,849

Cash and cash equivalents at end of period (Note 33) 3,225,954 4,598,834

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 209
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
Olam Group Limited Annual Report 2023 209
Olam Group Limited Annual Report 2023 209
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Notes to
Notes to the
the Financial
FinancialStatements
Financial report
Statements
Notes to the Financial Statements
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023

These notes form an integral part of the financial statements.

The financial statements for the financial year ended 31 December 2023 were authorised for issue by the Board of Directors
on 22 March 2024.
1. Corporate information
Olam Group Limited (the ‘Company’) is a limited liability company, which is domiciled and incorporated in Singapore.
The Company is listed on the Singapore Exchange Securities Trading Limited (SGX-ST).
The Company’s immediate holding company is Temasek Capital (Private) Limited and its ultimate holding company is
Temasek Holdings (Private) Limited, both companies are incorporated in Singapore.
The principal activities of the Company are those of investment holding. The principal activities of the significant
subsidiaries are disclosed in Note 14.
The registered office and principal place of business of the Company is at 7 Straits View, #20-01 Marina One East Tower,
Singapore 018936.
2. Material accounting policy information
2.1 Basis of prep aration
The consolidated financial statements of the Company and its subsidiary companies collectively, the Group, and
the balance sheet and statement of changes in equity of the Company have been prepared in accordance with
Singapore Financial Reporting Standards (International) (SFRS(I)).
The financial statements have been prepared on a historical cost basis except as disclosed in the accounting policies below.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 3.
The financial statements are presented in Singapore Dollars ($ or SGD) and all values in the tables are rounded to
the nearest thousand ($’000) as indicated.
2.2 Ch anges in accounti ng policies
The accounting policies adopted are consistent of the previous financial year except in the current financial year, the
Group has adopted all the new and revised standards which are effective for annual financial periods beginning on or
after 1 January 2023. The adoption of these standards did not have any effect on the financial performance or
position of the Group and the Company with the exception of the following as discussed on the next page.
Amendments to SFRS(I) 1-12 Income Taxes – International Tax Reform – Pillar Two Model Rules
The amendments to SFRS(I) 1-12 have been introduced in response to the Organisation for Economic Co-operation
and Development’s (“OECD”) BEPS Pillar Two rules and include:

• A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional
implementation of the Pillar Two model rules; and
• Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s
exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.
The Group has operations globally, including in jurisdictions which have either enacted new legislation or
announced plans to implement the global minimum top-up tax. However, since the newly enacted tax legislation is
only effective from 1 January 2024, there is no current tax impact for the year ended 31 December 2023.
The Group has applied a temporary mandatory relief from deferred tax accounting for the impact of the top-up tax
and accounts for it as a current tax when it is incurred.
The Group’s exposure to Pillar Two income taxes is dependent on jurisdictional profits and the jurisdictional GloBE
effective tax rates calculated in accordance with the Pillar Two legislation. The Group is in the process of assessing
the exposure to the Pillar Two income taxes arising from the legislation and has engaged a third-party consultant to
independently perform an assessment of the Group’s potential exposure to Pillar Two income taxes. As more
guidance continue to be issued by the OECD and relevant government authorities in the relevant jurisdictions,
adjustments required to determine the GloBE effective tax rates in accordance with the Pillar Two legislation cannot
be reasonably considered. Due to the complex nature of the Pillar Two legislation and the calculations including the
determination of the adjustments required under the Pillar Two legislation, the Group assessed that the quantitative
impact of the potential top-up tax arising from the enacted/substantively enacted legislation is not yet reasonably
estimable. The Group continues to assess the financial impact of the Pillar Two legislation, as more details on Pillar
Two legislation are released internationally.

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2.3 Standards issued but not yet effectiv e
The Group has not adopted the following standards and interpretations applicable to the Group that have been
issued but are not yet effective:
Effective for financial
Description year beginning on
Amendments to SFRS(I) 1-1: Classification of Liabilities as Current or Non-current 1 January 2024
Amendments to SFRS(I) 1-1: Non-current Liabilities with Covenants 1 January 2024
Amendments to SFRS(I) 16: Lease Liability in a Sale and Leaseback 1 January 2024
Amendments to SFRS(I) 1-7/ FRS 7 and SFRS(I) 7/ FRS 107: Supplier Finance Arrangements 1 January 2024
Amendments to SFRS(I) 1-21/ FRS 21, SFRS(I) 1/ FRS 101: Lack of Exchangeability 1 January 2025
Amendments to SFRS(I) 10 & SFRS(I) 1-28/FRS 110 & FRS 28 Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture Date to be determined

The directors expect that the adoption of the other standards and interpretations above will have no material
impact on the financial statements in the period of initial application.
2.4 Functional and foreig n currency
The Group’s consolidated financial statements are presented in Singapore Dollars as the Company is
domiciled in Singapore.
The Company’s functional currency is the United States Dollar (‘USD’), which reflects the economic substance of
the underlying events and circumstances of the Company as most of the Company’s transactions are
denominated in USD. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
a. Transactions and balances
Transactions in foreign currencies are measured in the respective functional currencies of the Company and its
subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates
approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at the balance sheet date. Non-monetary items that
are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the
dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was measured.
The foreign currency translation reserve is reclassified from equity to profit or loss of the Group on disposal of
the foreign operation.
b. Consolidated financial statements
For consolidation purpose, the assets and liabilities of foreign operations are translated into USD at the rate
of exchange ruling at the balance sheet date and their profit or loss are translated at the weighted average
exchange rates for the year. The exchange differences arising on the translation are recognised in other
comprehensive income. On disposal of a foreign operation, the component of other comprehensive income
relating to that particular foreign operation is recognised in profit or loss.
In the case of a partial disposal without loss of control of a subsidiary that includes a foreign operation, the
proportionate share of the cumulative amount of the exchange differences are re-attributed to non-controlling
interest and are not recognised in profit or loss. For partial disposals of associates or joint ventures that are foreign
operations, the proportionate share of the accumulated exchange differences is reclassified to profit or loss.
In the current financial year, there were changes to the local functional currencies of certain subsidiaries in Africa.
The change is owing to the change in economic environment and the currency that mainly influences the costs of
production, sales prices and financing activities of certain African subsidiaries in the Group, so their functional
currencies have been changed prospectively from their local currencies to USD from 1 January 2023.

Olam Group Limited Annual Report 2023 211

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Olam Group Limited Annual Report 2023 211
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Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2.4 Functional and foreign currency continued
c. Translation to the presentation currency
The financial statements are presented in Singapore Dollar (‘SGD’) as the Company’s principal place of
business is in Singapore.
The financial statements are translated from USD to SGD as follows:-

• Assets and liabilities for each balance sheet presented are translated at the closing rate ruling at that balance
sheet date;
• Income and expenses for each profit and loss account are translated at average exchange rates for the year,
which approximates the exchange rates at the dates of the transactions; and

All exchange differences arising on the translation are included in the foreign currency translation reserves.
2.5 Subsid ia ry companies, basis of co nsolidatio n and business combina tio ns
a. Subsidiary companies
A subsidiary is an investee that is controlled by the Group. The Group controls an investee when it is exposed,
or has rights, to variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee. In the Company’s separate financial statements, investments in
subsidiaries are accounted for at cost less impairment losses.
A list of the Group’s significant subsidiary companies is shown in Note 14.
b. Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at the end of the reporting period. The financial statements of the subsidiaries used in the preparation of
the consolidated financial statements are prepared for the same reporting date as the Company. Consistent
accounting policies are applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control,
and continue to be consolidated until the date that such control ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it:

• Derecognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts at the
date when control is lost;
• Derecognises the carrying amount of any non-controlling interest;
• Derecognises the cumulative translation differences recorded in equity;
• Recognises the fair value of the consideration received;
• Recognises the fair value of any investment retained;
• Recognises any surplus or deficit in profit or loss;
• Reclassifies the Group’s share of components previously recognised in other comprehensive income to profit or
loss or retained earnings, as appropriate.

c. Business combinations and goodwill

Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired and
liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.
Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the
services are received.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be
an asset or liability, will be recognised in profit or loss.
Non-controlling interest in the acquiree, that are present ownership interests and entitle their holders to a
proportionate share of net assets of the acquiree are recognised on the acquisition date at either fair value, or
the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

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2. Material accounting policy information continued

2.5 Subsidiary companies, basis of consolidation and business combinations continued
c. Business combinations and goodwill continued
Any excess of the sum of the fair value of the consideration transferred in the business combination, the
amount of non-controlling interest in the acquiree (if any) and the fair value of the Group’s previously held
equity interest in the acquiree (if any) over the net fair value of the acquiree’s identifiable assets and liabilities is
recorded as goodwill. In instances where the latter amount exceeds the former, the excess is recognised as gain
on bargain purchase in profit or loss on the acquisition date. The accounting policy for goodwill is set out in
Note 2.10(a).
2.6 Transac tio ns with non- con trolling in ter e sts
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the
Company, and are presented separately in the consolidated profit and loss and within equity in the consolidated
balance sheet, separately from equity attributable to owners of the Company.
Changes in the Company’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by
which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised
directly in equity and attributed to owners of the Company.
2.7 Join t arrangemen ts
A joint arrangement is a contractual arrangement whereby two or more parties have joint control. Joint control is
the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
A joint arrangement is classified either as joint operation or joint venture, based on the rights and obligations of the
parties to the arrangement.
To the extent the joint arrangement provides the Group with rights to the assets and obligations for the liabilities
relating to the arrangement, the arrangement is a joint operation. To the extent the joint arrangement provides the
Group with rights to the net assets of the arrangement, the arrangement is a joint venture.
The Group recognises its interest in a joint venture as an investment and accounts for the investment using the
equity method. The accounting policy for investment in joint venture is set out in Note 2.8.
2 .8 J o in t v en tu r e s a n d a s s o c ia tes
An associate is an entity over which the Group has the power to participate in the financial and operating policy
decisions of the investee but does not have control or joint control of those policies.
The Group account for its investments in associates and joint ventures using the equity method from the date on
which it becomes an associate or joint venture.
On acquisition of the investment, any excess of the cost of the investment over the Group’s share of the net fair
value of the investee’s identifiable assets and liabilities represents goodwill and is included in the carrying amount
of the investment. Any excess of the Group’s share of the net fair value of the investee’s identifiable assets and
liabilities over the cost of the investment is included as income in the determination of the entity’s share of the
associate or joint venture’s profit or loss in the period in which the investment is acquired.
Under the equity method, the investment in associates or joint ventures are carried in the balance sheet at cost plus
post-acquisition changes in the Group’s share of net assets of the associates or joint ventures. The profit or loss
reflects the share of results of the operations of the associates or joint ventures. Distributions received from joint
ventures or associates reduce the carrying amount of the investment. Where there has been a change recognised in
other comprehensive income by the associates or joint venture, the Group recognises its share of such changes in
other comprehensive income. Unrealised gains and losses resulting from transactions between the Group and
associate or joint ventures are eliminated to the extent of the interest in the associates or joint ventures.
When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or
joint venture, the Group does not recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate or joint venture.

Olam Group Limited Annual Report 2023 213

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Olam Group Limited Annual Report 2023 213
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Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2.9 Prop erty, plant and eq uipmen t
All items of property, plant and equipment are initially recorded at cost. Such cost includes the cost of replacing
part of the property, plant and equipment and borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying property, plant and equipment. The accounting policy for borrowing
costs is set out in Note 2.16. The cost of an item of property, plant and equipment is recognised as an asset if, and
only if, it is probable that future economic benefits associated with the item will flow to the Group and the cost of
the item can be measured reliably.
Subsequent to recognition, all items of property, plant and equipment (except for freehold land) are stated at cost
less accumulated depreciation and accumulated impairment losses. Freehold land has an unlimited useful life and
therefore is not depreciated. Buildings and improvements are depreciable over the shorter of the estimated useful
life of the asset or the lease period, where applicable.
Depreciation of an asset begins when it is available for use and is computed on a straight line basis over the
estimated useful life except for ginning assets of Queensland Cotton Holdings Pty Ltd., which are depreciated using
the units of use method. The estimated useful life of the assets is as follows:-
Bearer plants • 15 to 30 years
Buildings and improvements • 5 to 50 years
Plant and machinery • 3 to 25 years; 30 years for ginning assets
Motor vehicles • 3 to 5 years
Furniture and fittings • 5 years
Office equipment • 5 years
Computers • 3 years

Bearer plants - Immature plantations are stated at acquisition cost which includes costs incurred for field preparation,
planting, farming inputs and maintenance, capitalisation of borrowing costs incurred on loans used to finance the
development of immature plantations and an allocation of other indirect costs based on planted hectarage.
Capital work-in-progress is not depreciated as these assets are not yet available for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the profit and loss
account in the year the asset is derecognised.

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2. Material accounting policy information continued

2.10 Intangible assets
a. Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less any
accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition
date, allocated to each of the Group’s cash-generating units that are expected to benefit from the synergies of
the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever
there is an indication that the cash-generating unit may be impaired. Impairment is determined for goodwill by
assessing the recoverable amount of each cash-generating unit (or group of cash-generating units) to which
the goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying
amount, an impairment loss is recognised in the profit and loss account. Impairment losses recognised for
goodwill are not reversed in subsequent periods.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the
goodwill associated with the operation disposed of is included in the carrying amount of the operation when
determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured
based on the relative fair values of the operations disposed of and the portion of the cash-generating unit retained.
b. Other intangible assets
Intangible assets acquired separately are measured initially at cost. Following initial acquisition, intangible
assets are measured at cost less any accumulated amortisation and accumulated impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised on a straight-line basis over the estimated useful lives and
assessed for impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method are reviewed at least at each financial year-end. Changes in
the expected useful life or the expected pattern of consumption of future economic benefits embodied in the
asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as
changes in accounting estimates.
Intangible assets with indefinite useful lives or that are not yet available for use are not subject to amortisation
and they are tested for impairment annually or more frequently if the events and circumstances indicate that
the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible
assets are not amortised. The useful life of an intangible asset with an indefinite useful life is reviewed annually
to determine whether the useful life assessment continues to be supportable.
2.11 Biologica l assets
a. Agricultural produce (‘Fruits on trees’) and annual crops
The fair value of agricultural produce (‘fruits on trees’) is estimated using the discounted cash flow model, with any
changes recognised in the profit or loss. The fair value takes into account yields, current market prices and related costs.
The calculated value is then discounted by a suitable factor to take into account the agricultural risk until maturity.
The annual crops are carried at fair value basis the estimate of the price, yield and cost of the crop at harvest
discounted for the remaining time to harvest. Where at any period end, little biological transformation has
taken place since initial cost incurrence (for example, for seedlings planted immediately prior to the end of a
reporting period), the annual crops have been carried at cost which approximates fair value.
b. Livestock
The fair value of livestock is estimated using the discounted cash flow model, with any resultant gain or loss recognised
in the profit or loss. The fair value of livestock takes into account milk yields, market prices of livestock of similar age,
breed and generic merit, related costs and discount factor to account for the agricultural risk of the livestock.
c. Poultry
Poultry are stated at fair value less estimated costs to sell, with any resultant gain or loss recognised in the
profit or loss. Costs to sell include all costs that would be necessary to sell the assets. The fair value of poultry
is determined based on estimated market price of livestock of similar age, breed and generic merit.
Breeding chickens are carried at fair value, which approximates cost and are amortised over the economic
egg-laying lives of the breeding chickens after it starts producing eggs.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2.12 Impairmen t of no n-fi n a ncial ass ets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, or when an annual impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. The Group makes an estimate of the asset’s recoverable amount with the help of
independent professional valuers where applicable.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal
and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or group of assets. In assessing value in use, the estimated
future cash flows expected to be generated by the asset are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate valuation model is used. Where the carrying
amount of an asset exceeds its recoverable amount, the asset is written down to its recoverable amount.
Impairment losses are recognised in profit or loss. A previously recognised impairment loss is reversed only if there
has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment
loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss.
Impairment losses relating to goodwill cannot be reversed in future periods.
2.13 Fi nanc ial ins trum en ts
a. Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Group becomes a party to the contractual provisions
of the instruments. The Group determines the classification of its financial assets at initial recognition.
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in
profit or loss.
Trade receivables are measured at the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of
third party, if the trade receivables do not contain a significant financing component at initial recognition.
Subsequent measurement
Debt instruments – amortised costs
Financial assets that are held for the collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortised cost. Financial assets are measured at
amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit
or loss when the assets are derecognised or impaired, and through amortisation process.
Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured to their fair value at the end of each reporting period. Changes in fair value of
derivatives are recognised in profit or loss.

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2.13 Financial instruments continued
a. Financial assets continued
Impairment
For trade receivables, the Group applies a simplified approach in calculating expected credit losses (‘ECLs’). The
Group recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a
provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the
debtors and the economic environment. This is similar for other financial assets on the balance sheet. Impairment
losses are reflected in the allowance account of the respective financial asset class on the balance sheet:
• Loan to associate (Note 15)
• Amount due from subsidiary companies, net (Note 16)
• Trade receivables (Note 17)
• Other current assets – Sundry receivables, export incentives and subsidies receivable, deposits, staff advances,
insurance receivables, amount due from joint venture, associates and a shareholder related company (Note 21)
Derecognition
A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum
of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive
income for debt instruments, is recognised in profit or loss.
b. Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions of
the financial instrument. The Group determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus, in the case of financial liabilities not at fair value
through profit or loss, directly attributable transaction costs.
Subsequent measurement
After initial recognition, financial liabilities that are not carried at fair value through profit or loss are
subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised
in profit or loss when the liabilities are derecognised, and through the amortisation process.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
On derecognition, the difference between the carrying amounts and the consideration paid is recognised in
profit or loss. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as a derecognition of the original liability and the recognition of a new liability and the difference in
the respective carrying amounts are recognised in profit or loss.
c. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheets, when
and only when, there is a currently enforceable legal right to set off the recognised amounts and there is an
intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2.14 Ca sh and cash eq uivalents
Cash and cash equivalents comprise cash and bank balances and short-term fixed bank deposits that are subject to an
insignificant risk of changes in value. These also include bank overdrafts that form an integral part of the Group’s
cash management. Cash and cash equivalents carried in the balance sheets are classified and accounted as measured
at amortised cost under SFRS(I) 9. The accounting policy for this category of financial assets is stated in Note 2.13.
2.15 Inventor ies
Inventories for commodity trading businesses are measured at fair value less costs to sell, with changes in fair
value less costs to sell recognised in the profit or loss in the period of the change.
Other inventories are stated at the lower of cost and net realisable value and are valued on a weighted average
cost basis. Net realisable value represents the estimated selling price in the ordinary course of business, less
anticipated cost of disposal and after making allowance for damages and slow-moving items.
For fruits on trees that are harvested, are stated at fair value less estimated point-of-sale costs at the time of harvest
(the ‘initial cost’). Thereafter these inventories are carried at the lower of initial cost and net realisable value.
Where necessary, allowance is provided for damaged, obsolete and slow-moving items to adjust the carrying
value of inventories to the lower of cost and net realisable value.
2.16 Borrow i ng cos ts
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the
acquisition, construction or production of that asset. Capitalisation of borrowing costs commences when the
activities to prepare the asset for its intended use or sale are in progress and the expenditures and borrowing
costs are incurred. Borrowing costs are capitalised until the assets are substantially completed for their intended
use or sale. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing of funds.
2.17 Provis io ns
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates. If it is
no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is
reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

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2. Material accounting policy information continued

2.18 Employee benef its
a. Defined contribution plan
The Group participates in the national pension schemes as defined by the laws of countries in which it has
operations. In particular, the Singapore companies in the Group make contributions to the Central Provident
Fund scheme in Singapore, a defined contribution pension scheme. Contributions to defined contribution
pension schemes are recognised as an expense in the period in which the related service is performed.
b. Employee share options scheme/share grant plan
Employees (including senior executives) of the Group receive remuneration in the form of share options or
shares as consideration for services rendered (‘equity-settled transactions’).
The cost of these equity-settled share-based payment transactions with employees is measured with reference
to the fair value at the date on which the share subscriptions/options are granted which takes into account
market conditions and non-vesting conditions.
This cost is recognised in the profit or loss, with a corresponding increase in the share-based compensation
reserve, over the vesting period. The cumulative expense recognised at each reporting date until the vesting
date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of
options that will ultimately vest. The charge or credit to the profit or loss for a period represents the movement
in cumulative expense recognised as at the beginning and end of that period and is recognised in employee
benefits expense.
No expense is recognised for options that do not ultimately vest, except for options where vesting is conditional
upon a market condition or non-vesting condition, which are treated as vested irrespective of whether or not
the market condition or non-vesting condition is satisfied, provided that all other performance and/or service
conditions are satisfied. In the case where the option does not vest as the result of a failure to meet a non-
vesting condition that is within the control of the Group or the employee, it is accounted for as a cancellation.
In such case, the amount of the compensation cost that otherwise would be recognised over the remainder of
the vesting period is recognised immediately in profit or loss upon cancellation.
Where the terms of an equity-settled award are modified, an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for a modification, which increases the total fair value of the share-
based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it has vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the
cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new
awards are treated as if they were a modification of the original award, as described in the previous paragraph.
2.19 L eas es
Lease contracts, as defined by SFRS(I) 16 Leases, are recorded in the balance sheet, which leads to the
recognition of:

• an asset representing a right-of-use of the asset leased during the lease term of the contract;
• a liability related to the payment obligation.
Right-of-use assets
Right-of-use assets are measured at cost, which comprise the following - lease liability, lease payments made at
or prior to delivery, less lease incentives received, initial direct costs and restoration obligations.
Following initial recognition, right-of-use assets are subsequently measured at amortised cost and depreciated
over the term of the lease using the straight-line method.
Lease liability
The lease liability at commencement date is recognised for an amount equal to the present value of the lease
payments over the lease term.
The lease liability is subsequently measured based on a process similar to the amortised cost method using the
discount rate: where the liability is increased by the accrued interests resulting from the discounting of the lease
liability, at the beginning of the lease period and less payments made. The interest cost for the period as well as
variable payments, not taken into account in the initial measurement of the lease liability and incurred over the
relevant period are recognised as costs.

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 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2.19 Leases continued
Variable lease payments
The Group has ‘Tiered Revenue Sharing Arrangements’ for certain leases of land, buildings, plant and machinery
and other assets. Arising from such arrangements are variable lease payments that do not depend on an index or
rate and are based on production volumes or revenues of the underlying performance of the respective business
units. Such variable lease payments are recognised in profit or loss in the period in which the event that triggers
the occurrence of payments.
To the extent that the lease contract is a tiered revenue sharing arrangement in a sale and leaseback transaction,
the Group shall measure the right-of-use asset arising from the leaseback at the proportion of the previous
carrying amount of the asset that relates to the right-of-use retained by the Group. Accordingly, the Group shall
recognise only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor.
Short term leases and low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of land, buildings, plant and
machinery and other assets (i.e., those leases that have a lease term of 12 months or less from the commencement
date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to
other assets that are considered to be low value. Lease payments on short-term leases and leases of low-value
assets are recognised as expense on a straight-line basis over the lease term.
2.2 0 R ev enu e from con trac ts w ith custo m ers
Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.
Revenue is recognised when the Group satisfies a performance obligation by transferring a promised good
or service to the customer, which is when the customer obtains control of the good or service. A performance
obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount
allocated to the satisfied performance obligation.
a. Sale of goods
Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the
customer, generally on delivery of the goods as performance obligation is judged to have been satisfied and
revenue is therefore recognised.
Revenue is measured at the consideration promised in the contract with a customer, less discounts and rebates.
b. Sale of services
Revenue from services rendered is recognised in the accounting period in which services are rendered.
Chartering income
Revenue from time charter hire is recognised on a straight-line basis over the period of the time charter
contracts. The portion of the revenue relating to the unexpired time charter period is accounted for as
deferred income in the consolidated balance sheet.
Freight income derived from the provision of voyage charters are recognised over the voyage duration as the
freight services are rendered. Freight income is recognised as of the date on which a vessel embarks from the
port where the cargo was loaded to the discharge of the cargo, and adjustments are made for any portions of
uncompleted voyages based on pro-rata basis.
2.21 Inter es t incom e
Interest income is recognised using the effective interest method.
2.22 Government grants, export in centives and subsidies
Government grants, export incentives and subsidies are recognised at their fair values when there is reasonable
assurance that the grant will be received and all conditions attached will be complied with. When the grant relates
to an expense item, it is recognised in the profit or loss over the period necessary to match it on a systematic basis
to the costs that it is intended to compensate. When the grant relates to an asset, the fair value is recognised as
deferred capital grant on the balance sheet and is amortised to the profit or loss over the expected useful life of
the relevant asset by equal annual instalments.

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2. Material accounting policy information continued

2.23 Taxes
a. Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted by the end of the reporting period, in the
countries where the Group operates and generates taxable income.
Current income taxes are recognised in profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly in equity. Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
b. Deferred tax
Deferred tax is provided using the liability method on temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:-

• where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
• in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in
joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carryforward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carryforward of unused tax credits and unused tax
losses can be utilised except:-

• where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; and
• in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against which the temporary
differences can be utilised.
The carrying amount of deferred tax asset is reviewed at each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted at the balance sheet date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items
are recognised in correlation to the underlying transaction either in other comprehensive income or directly in
equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate
recognition at that date, would be recognised subsequently if new information about facts and circumstances
changed. The adjustment would be treated either as a reduction to goodwill (as long as it does not exceed
goodwill) if incurred during the measurement period or in profit or loss.

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 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2.23 Taxes continued
c. Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:-

• where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case the sales tax is recognised as part of the cost of acquisition of the assets or as
part of the expense item as applicable; and
• where receivables and payables are stated with the amount of sales tax included.
The net amount of sales tax recoverable from or payable to the taxation authority is included as part of
receivables or payables in the balance sheet.
2.24 Segm ent reporting
For management purposes, the Group is organised into operating segments based on their products and services,
which are independently managed by the respective segment managers responsible for the performance of the
respective segments under their charge.
The segment managers report directly to the management of the Company which regularly reviews the segment
results in order to allocate resources to the segments and to assess the segment performance. Additional
disclosures on each of these segments are shown in Note 38, including the factors used to identify the reportable
segments and the measurement basis of segment information.
2.25 Share capita l and share issue exp enses
Proceeds from issuance of ordinary shares net of directly attributable expenses are recognised as share capital in equity.
2.26 Tr easury shares
The Group’s own equity instruments, which are reacquired (treasury shares) are recognised at cost (including
directly attributable expenses) and deducted from equity. No gain or loss is recognised in profit or loss on the
purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference between the carrying
amount of treasury shares and the consideration received, if reissued, is recognised directly in equity. Voting
rights related to treasury shares are nullified for the Group and no dividends are allocated to them respectively.
2.27 Perpetu al capital securities
The perpetual capital securities do not have a maturity date and the Company is able to elect to defer making a
distribution subject to the terms and conditions of the securities issue. The Company is considered to have no
contractual obligation to make principal repayments or distributions in respect of its perpetual capital securities
issue. Accordingly, the perpetual capital securities do not meet the definition for classification as financial liability
and are presented within equity. Distributions are treated as dividends which will be directly debited from equity.
Incremental costs directly attributable to the issue of the perpetual capital securities are deducted against the
proceeds from the issue.
2 .2 8 Con ti ng enc i es
A contingent liability is:-
a. a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or
b. a present obligation that arises from past events but is not recognised because:
i. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
ii. the amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group.
Contingent liabilities and assets are not recognised on the balance sheet of the Group, except for contingent
liabilities assumed in a business combination that are present obligations and for which the fair values can be
reliably determined.

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2.29 Derivati ve f inancia l instruments and hedging a cti viti es
Derivative financial instruments include forward currency contracts, commodity futures, options, over-the-counter
(‘OTC’) structured products, commodity physical forwards, foreign currency swap and interest rate swap contracts.
These are used to manage the Group’s exposure to risks associated with foreign currency, commodity price and
interest rate fluctuations. Certain derivatives are also used for trading purposes. Such derivative financial
instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivative financial instruments are carried as assets when the fair value is
positive and as liabilities when the fair value is negative.
The fair value of forward currency contracts and interest rate derivatives are calculated by reference to current
forward exchange rates and interest rates respectively for contracts with similar maturity profiles. The fair values of
commodity futures, options, OTC structured products and physical forwards are determined by reference to
available market information and market valuation methodology. Where the quoted market prices are not available,
fair values are based on management’s best estimates, which are arrived at by reference to market prices.
Hedge accounting
The Group applies hedge accounting for certain hedging relationships which qualify for hedge accounting.
For the purpose of hedge accounting, hedges are classified as:-

• fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or
an unrecognised firm commitment; or
• cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk
associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an
unrecognised firm commitment.
a. Fair value hedges
Fair value hedge accounting is applied to hedge the Group’s exposure to changes in the fair value portion
of such an asset or liability or an identified portion of such an asset or liability that is attributable to a
particular risk – commodity price risk that could affect the profit and loss account. For fair value hedges, the
carrying amount of the hedged item (inventories) is adjusted for gains and losses attributable to the risk being
hedged, the derivative (hedging instrument) is remeasured at fair value, gains and losses from both are taken
to the profit and loss account.
When inventories are designated as a hedged item, the subsequent cumulative change in the fair value
of these inventories attributable to the hedged commodity price risk is recognised as part of inventories with a
corresponding gain or loss in the profit and loss account. The hedging instrument is recorded at fair value as
an asset or liability and the changes in the fair value of the hedging instrument are also recognised in the
profit and loss account.
The application of hedge accounting is discontinued in cases where the Group revokes the hedging relationship.
Effective from SFRS(I) 9, hedging relationships may not be voluntarily revoked unless there is a change in risk
management objective. Accordingly, in cases where a hedging relationship ceases to meet the hedge
effectiveness requirement relating to the hedge ratio but the risk management objective remains unchanged,
the Group adjusts the hedging ratio to re-establish the effectiveness of the hedging relationship. Furthermore,
the Group discontinues the application of hedge accounting in cases where there is a change in the risk
management objective for the hedging relationship.
b. Cash flow hedges
For each cash flow hedge relationship, the effective part of any gain or loss on the derivative financial
instrument is recognised directly in other comprehensive income. Amounts recognised as other comprehensive
income are transferred to profit or loss when the hedged transaction affects profit or loss. The ineffective part
of any gain or loss is recognised immediately in the profit and loss account at the time hedge effectiveness is
tested.
When a cash flow hedge is discontinued, any cumulative gain or loss previously recognised in other
comprehensive income will remain in the cash flow hedge reserve until the future cash flows occur.
If the hedged future cash flows no longer expected to occur, the net cumulative gain or loss is immediately
reclassified to profit and loss account.

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 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

2. Material accounting policy information continued

2 .3 0 R el a ted p a r tie s
A related party is defined as follows:-
a. A person or a close member of that person’s family is related to the Group and Company if that person:
i. has control or joint control over the Company;
ii. has significant influence over the Company; or
iii. is a member of the key management personnel of the Group or Company or of a parent of the Company.
b. An entity is related to the Group and the Company if any of the following conditions applies:-
i. the entity and the Company are members of the same group (which means that each parent, subsidiary
and fellow subsidiary is related to the others).
ii. one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member
of a group of which the other entity is a member).
iii. both entities are joint ventures of the same third party.
iv. one entity is a joint venture of a third entity and the other entity is an associate of the third entity.
v. the entity is a post-employment benefit plan for the benefit of employees of either the Company or an
entity related to the Company. If the Company is itself such a plan, the sponsoring employers are also
related to the Company.
vi. the entity is controlled or jointly controlled by a person identified in (a).
vii. a person identified in (a) (i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity).

3. Significant accounting judgements and estimates

The preparation of the Group’s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in
outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future
periods.
Key so urc es o f estimation u ncertainty
The key assumptions concerning the future and other key sources of estimating uncertainty as at the balance sheet
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are discussed below. The Group based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising beyond the control of
the Group. Such changes are reflected in the assumptions when they occur.
a. Impairment of goodwill and intangible assets with indefinite/definite useful life
Management performs periodic reviews of goodwill, intangible assets with indefinite/finite life for indication of
impairment. The Group estimates the value in use of the cash-generating units to which the goodwill and intangible
asset with indefinite/finite useful life is allocated. Estimating the value in use requires the Group, with the help of
independent professional valuers where applicable, to make an estimate of the expected future cash flows from the
cash-generating units and also to choose a suitable discount rate in order to calculate the present value of those
cash flows. The impairment tests are sensitive to forecasted EBITDA, growth rates and discount rates. Changes in
these assumptions may result in changes in recoverable values. The carrying amount of the Group’s goodwill and
indefinite/finite life intangible assets at the balance sheet date is disclosed in Note 12.

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3. Significant accounting judgements and estimates continued

Key sources of estimation uncertainty continued
b. Impairment of property, plant and equipment
An impairment exists when the carrying value of an asset exceeds its recoverable amount, which is the higher of its
fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data
from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less
incremental costs for disposing the asset. The Group had engaged independent professional valuers, where
relevant to assess the fair values for certain assets using recognised valuation techniques.
The value in use calculation is based on a discounted cash flow model and requires the Group, with the help of
independent professional valuers where applicable, to make an estimate of the expected future cash flows from the
cash-generating units and also to choose a suitable discount rate in order to calculate the present value of those
cash flows. The value in use calculations are sensitive to forecasted EBITDA, growth rates and discount rates.
Changes in these above assumptions may result in changes in recoverable values. The carrying amount of the
Group’s property, plant and equipment at the balance sheet date is disclosed in Note 11.
c. Biological assets
The fair value of biological assets (other than poultry and annual crops) is estimated using the discounted cash flow
model, which requires the Group to make an estimate of the expected future cash flows from the biological assets.
Key assumptions where judgement is involved includes forecast cash flows, discount rates, yield rates for the
plantations and market prices of the fruits or nuts/crop and livestock, which is referenced to professional valuations
where significant and considering effect of climate risks factors on the assumptions. The valuation of these
biological assets is disclosed in Note 13.
d. Fair value of financial instruments
Where the fair values of financial instruments recorded on the balance sheet cannot be derived from active
markets, the fair values are determined using unobservable inputs (Level 3). Due to lack of market corroborated
information, the fair values of certain financial instruments are determined using certain management assumptions
to estimate the costs of transportation, location-related adjustments, conversion cost and market prices. Changes
in assumptions about these factors could affect the reported fair value of financial instruments. The valuation of
financial instruments is described in more detail in Note 35.
e. Taxation
The Group establishes provisions, based on reasonable estimates, of the respective countries in which it operates.
The amount of such provisions is based on various factors, such as experience of previous tax audits and differing
interpretations of tax regulations by the taxable entity and the relevant tax authority. Such differences of
interpretation may arise on a wide variety of issues including transfer pricing arrangements which vary by tax
jurisdiction. In addition to the complexity of its tax environment, there is a level of unpredictability of tax authority’s
assessment of the Group’s tax filings, which results in the application of management judgment in ascertaining
reasonable estimates.
For open tax years, the Group assesses its liabilities and contingencies based upon the latest information available.
Inherent uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in
tax laws. The Group records reasoned estimates of uncertain tax positions where it is assessed on the balance of
probabilities that an adjustment is likely. Management does not anticipate a significant risk of material changes in
estimates in this matter in the next financial year.
In addition to the above, deferred tax assets are recognised for all unused tax losses and deductible temporary
differences to the extent that it is probable that taxable profit will be available against which the losses or the
temporary differences can be utilised. Significant management judgement is required to determine the amount of
deferred tax assets that can be recognised, based on the estimated unwinding of the deferred tax against taxable
income or taxable temporary differences, together with future tax planning strategies.
The carrying amounts of the Group’s provision for taxation, deferred tax assets and deferred tax liabilities the
balance sheet date is disclosed in Note 9.

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Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

4. Revenue from contracts with customers – disaggregation of revenue

Group
2023 2022
$’000 $’000
Types of goods or services
Sale of goods 46,805,073 53,467,745
Sale of services 1,466,918 1,433,232
Total revenue from contracts with customers 48,271,991 54,900,977

Timing of revenue recognition

Goods transferred at point in time 46,805,073 53,467,745
Services transferred over time 1,279,949 1,232,875
Services transferred at point in time 186,969 200,357
Total revenue from contracts with customers 48,271,991 54,900,977

Revenue from sale of services mainly represents ginning, toll processing income and freight charter income.
For further disaggregation disclosure of revenue from contracts with customers by business and geographical segments
– refer to Note 38.
5. Other income
Other income included the following:-
Group
2023 2022
$’000 $’000
Gain on disposal of joint venture and associate 7,240 2,804
Commissions and claims, sale of packaging materials, sales of scrap and others 119,064 90,480
126,304 93,284

6. Operating expenses – direct

The significant portion of the operating expenses – direct pertains to the purchase costs of inventories sold (Note 19).
The other directly attributable expenses include:-
Group
2023 2022
$’000 $’000
Shipping, logistics, commission and claims (3,762,747) (4,885,010)
Foreign exchange on cost of goods sold, net 1 (44,807) 24,691
Gain/(losses) on derivatives net of fair value changes 502,719 (1,243,855)
Inventories written down, net (Note 19) (30,489) (50,415)
Export incentives, subsidies and grant income received 2 44,443 18,359

1. Foreign exchange on cost of goods sold relate to foreign exchange movement arising between the time of purchase of goods and the time of sale of
such goods.
2. Export incentives and subsidies relate to income from government agencies of various countries for subsidised agricultural inputs to farmers and export
of agricultural products.

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7. Other expenses
Other expenses are stated after (charging)/crediting:-
Group
2023 2022
$’000 $’000
Loss on disposal of joint venture (840) –
Gain on disposal of property, plant and equipment and intangible assets, net 6,404 956
Employee benefits expenses (Note 30) (1,514,057) (1,387,576)
Gain/(loss) on foreign exchange, net 120,599 (134,734)
Bank charges (76,422) (88,228)
Travelling expenses (77,208) (71,428)
Transaction costs incurred in business combinations – (3,151)
Impairment loss on financial assets − Trade receivables (Note 17) (9,971) (26,197)
Allowance for doubtful debts − Advance payments to suppliers (Note 20) (7,999) (13,399)
Impairment of investment in joint venture (Note 15(a)) (22) –
Group re-organisation costs 1 (61,471) (112,060)
Business restructuring and closure costs – (217)
Auditor’s remuneration:
• Ernst & Young LLP, Singapore 2 (6,223) (6,727)
• Other member firms of Ernst & Young Global 2 (10,076) (9,845)
Non-audit fees:
• Ernst & Young LLP, Singapore 3 (2,408) (2,811)
• Other member firms of Ernst & Young Global 3 (173) (1,030)

1. The Group re-organisation costs relates to the announcement of 20 January 2020, where the Group announced that it would pursue a re-
organisation of its portfolio of businesses into three new operating groups, namely, ofi, Olam Agri and the remaining businesses. The remaining phases
of the re-organisation exercise continued into the current financial year.
2. Post the Group re-organisation which completed in the prior year, the audit fees paid to Ernst & Young LLP, Singapore and other member firms of
Ernst & Young Global relates to additional statutory financial statements requirements in Singapore and globally.
3. In the current financial year, non-audit fees paid to Ernst & Young LLP, Singapore mainly relate to the work performed for financial due diligence of
Olam Agri in connection to the proposed listing of the Olam Agri on both Singapore Stock Exchange and Tadawul in the Kingdom of Saudi Arabia. In
the prior financial year, non-audit fees paid to Ernst & Young LLP, Singapore mainly relate to the work performed for financial due diligence of ofi in
connection with the ofi IPO on the London Stock Exchange which was updated for prior year purposes.

8. Finance costs
Finance costs include the following:-
Group
2023 2022
$’000 $’000
Interest expense:
• On bank overdrafts 58,834 57,319
• On bank loans 1,015,355 593,632
• On medium-term notes 59,961 101,834
• On bonds 2,884 3,122
• On lease liabilities (Note 10, 24) 57,582 58,698
• Others 118,998 65,856
1,313,614 880,461
Less: interest expense capitalised in:
• Property, plant and equipment and bearer plants (22,553) (30,848)
1,291,061 849,613

Interest was capitalised to capital work-in-progress and bearer plants by various subsidiaries of the Group at rates
ranging from 6.25% to 12.47% (2022: from 2.83% to 7.50%) per annum.

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Olam Group Limited Annual Report 2023 227
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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

9. Income tax
a. Major compo nents of inco me tax expen se
Group
2023 2022
$’000 $’000
Profit and loss account
Current income tax:
• Singapore 37,481 72,281
• Foreign 184,717 197,328
Over provision in respect of prior years 1,301 (283)
223,499 269,326
Deferred income tax:
• Singapore (7,615) 11,583
• Foreign (156,006) (105,324)
Income tax expense 59,878 175,585

Group
2023 2022
$’000 $’000
Statement of comprehensive income:
Deferred income tax related to items credited directly to other comprehensive income:
Net change in fair value adjustment reserves for derivative financial instruments designated
as hedging instruments in cash flow hedges (135) (617)
Deferred tax recorded in other comprehensive income (135) (617)

b. Relationship betw ee n ta x expense and accounti ng profit

A reconciliation of the statutory tax rate to the Group’s effective tax rate (“ETR”) is as follows:-
Group
2023 2022
% %
Tax using Singapore tax rate 17% (2022: 17%) 17.0 17.0
Tax effect of non-deductible expenses 7.4 1.2
Higher statutory tax rates of other countries 1 7.8 9.8
Tax effect on over provision in respect of prior years 0.3 0.0
Tax effect of income taxed at concessionary rate 2 (15.7) (0.1)
Tax effect on non-taxable/exempt income 3 (2.4) (3.1)
Tax effect of joint ventures/associates (0.2) (0.4)
Tax effect of deferred tax assets recognised (0.2) (1.5)
Tax effect of others, net 0.6 1.4
Effective tax rate 14.6 24.3

1. The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.
2. The Group has two wholly-owned subsidiaries who are approved companies under the Global Trader Programme (‘GTP’) of Enterprise Singapore.
By virtue of this, both subsidiaries under the GTP tax incentive are entitled to a concessionary income tax rate of 5% for a period of 5 years from
(i) 1 January 2023 until and including 31 December 2027 and (ii) 1 January 2022 until and including 31 December 2026, respectively on qualifying
activities, products and income.
The Group has one wholly-owned subsidiary (2022: two wholly-owned subsidiaries) who is an approved company under the Expansion Incentive
(‘DEI’) - International Headquarters (‘IHQ’) award of Singapore Economic Development Board. By virtue of this, the subsidiary is entitled to a
concessionary income tax rate of 5% (2022: 5.0%-5.5%) for a period of 5 years from 1 January 2022 until and including 31 December 2026 on
qualifying income derived from the qualifying activities.
There are two other wholly-owned subsidiary companies that are taxed at a concessionary income tax rate of 8% under the Finance and
Treasury Centre (‘FTC’) status awarded by Enterprise Singapore. The concessionary tax rate is for a period of (i) 5 years effective from 1 March
2017 until and including 28 February 2027 (renewed for 1 March 2022 until and including 28 February 2027) and (ii) 5 years from 1 January 2022
until and including 31 December 2026, respectively on qualifying activities and income.
3. One of the Company’s wholly-owned subsidiary companies, Olam Maritime Freight Pte Ltd has been awarded the Approved International
Shipping Enterprise status under the Maritime Sector Incentive (MSI-AIS) administered by the Maritime and Port Authority of Singapore (MPA) for
a period of 10 years, from 15 August 2022 to 14 August 2032, where income derived from qualifying activities are tax exempt in Singapore.
Apart from the above, there are ten (2022: ten) other subsidiaries within the Group that are taxed at the preferential tax rate ranging from 0% to
17.5% (as opposed to the local headline/statutory tax rates ranging from 17% to 35%) by the local tax authorities for periods ranging from 0 to 6
years (2022: 0 to 7 years), except two subsidiaries which does not have an expiry date on preferential tax rate.

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9. Income tax continued

c. Def err ed inco me tax
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and
the same taxation authority.
The amounts, after such offsets, are disclosed on the balance sheet as follows:-
Group
2023 2022
$’000 $’000
Deferred tax assets 321,828 263,013
Deferred tax liabilities (416,512) (527,903)
Net deferred tax liabilities (94,684) (264,890)

Details of deferred tax assets and liabilities before offsetting is as follows:-

Consolidated
Balance Sheets
2023 2022
$’000 $’000
Deferred tax liabilities on:
Property, plant and equipment 224,400 254,416
Right-of-use asset 143,562 1,401
Intangible assets 194,366 193,078
Fair value adjustment on business combinations 137,144 157,118
Biological assets 80,780 112,201
Revaluation of financial instruments to fair value 60,957 31,176
Unrealised foreign exchange differences 10,112 –
Others 23,912 26,945
875,233 776,335
Amount offset against deferred tax assets (458,721) (248,432)
416,512 527,903

Deferred tax assets on:

Property, plant and equipment 15,422 12,803
Lease liability 219,950 77,780
Intangible assets 169,281 179,632
Fair value adjustment on business combinations 2,396 4,778
Allowance for impairment 4,680 5,778
Inventories written down 3,121 6,898
Revaluation of financial instruments to fair value 473 531
Unabsorbed losses 164,586 51,617
Unrealised foreign exchange differences 56,005 –
Others 144,635 171,628
780,549 511,445
Amount offset against deferred tax liabilities (458,721) (248,432)
321,828 263,013

Net deferred tax liabilities (94,684) (264,890)

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Olam Group Limited Annual Report 2023 229
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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

9. Income tax continued

c. Deferred income tax continued

Details of deferred tax (income)/expenses is as follows:-

Group
2023 2022
$’000 $’000
Property, plant and equipment (22,626) 65,283
Right-of-use asset/lease liability (556) (22,925)
Intangible assets 7,098 (22,161)
Fair value adjustment on business combinations (20,066) (8,162)
Biological assets (29,135) 19,399
Revaluation of financial instruments to fair value 30,898 (29,336)
Allowance for impairment 738 (2,540)
Inventories written down 390 182
Unabsorbed losses (113,004) (15,489)
Unrealised foreign exchange differences (3,921) (10,124)
Others (13,437) (67,868)
Deferred income tax income (163,621) (93,741)

Movements in deferred tax during the financial year is as follows:-

Group
2023 2022
$’000 $’000
As at beginning of year (264,890) (316,495)
Business combinations – (36,736)
Tax income recognised in profit and loss 163,621 93,741
Tax income recognised in equity 135 617
Foreign currency translation adjustments 6,450 (6,017)
(94,684) (264,890)

Unrecog nis ed ta x losses and capita l allowances for which no d eferred ta x assets have b een recognis ed
The Group has tax losses of approximately $442,900,000 (2022: $555,785,000) and capital allowances of
$17,613,000 (2022: $31,640,000) that are available for offset against future taxable profits of the companies in
which the losses arose for which no deferred tax asset has been recognised. The use of these tax losses is subject to
the agreement of the tax authorities and compliance with certain provisions of the tax legislation of the respective
countries in which the companies operate and there is no expiry date on the utilisation of such tax losses and
capital allowances for offset against future taxable profits, except for amounts of $392,251,000 (2022:
$402,871,000) which will expire over financial years 2023 to 2031.
Unr ecog nis ed tem p ora ry d i f f eren ce s r el a ti ng to in ve st m en ts in s ub s id ia ri es a nd j oin t v en tur es
At the end of the financial years ended 31 December 2022 and 31 December 2023, no deferred tax liability has been
recognised for taxes that would be payable on the undistributed earnings of certain of the Group’s subsidiaries and
joint ventures as:-

• The Group has determined that undistributed earnings of its subsidiaries will not be distributed in the foreseeable future; and
• The joint ventures of the Group cannot distribute its earnings until it obtains the consent of both parties. At the end of the
reporting period, the Group does not foresee giving such consent.
Such unrecognised taxable temporary difference associated with undistributed retained earnings of investments in
subsidiaries and joint ventures amounted to $324,035,000 (2022: $204,781,000). These retained earnings are
subject to withholding tax upon distribution.
Ta x con seq u e nce s of p rop o sed d i vid end s
There are no income tax consequences attached to the dividends to the shareholders proposed by the Company but
not recognised as a liability in the financial statements in respect of the current and previous financial year (Note 27).

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10. Right-of-use assets

Leasehold Other
Leasehold land buildings Water rights assets1 Total
Group $’000 $’000 $’000 $’000 $’000

As at 1 January 2022 278,466 211,191 126,724 166,278 782,659

Additions in relation to business combinations – 24,419 – 47 24,466
Additions/(disposals), net 22,573 125,130 – 117,092 264,795
Charge for the year (18,737) (69,585) (5,287) (94,537) (188,146)
Foreign currency translation and hyperinflation adjustments (12,890) (11,685) (8,546) (4,313) (37,434)
As at 31 December 2022 and 1 January 2023 269,412 279,470 112,891 184,567 846,340
Additions/(disposals), net 18,535 76,003 – 44,995 139,533
Charge for the year (17,320) (73,499) (5,005) (81,690) (177,514)
Foreign currency translation and hyperinflation adjustments (10,597) (2,925) (1,700) (2,105) (17,327)
As at 31 December 2023 260,030 279,049 106,186 145,767 791,032

Average remaining amortisation period (years)

– 31 December 2023 1-36 1-39 1-21 1-10
– 31 December 2022 1-39 1-39 1-22 1-10

1. Other assets comprise of vessel charter contracts, motor vehicles, office equipment and computers.

Am o u nt r ec og n is ed i n p r of it a nd lo s s
Group
2023 2022
$’000 $’000
Interest expense on lease liabilities (Note 8) 57,582 58,698
Expenses relating to variable leases (included in Cost of Goods Sold) 24,348 32,342
Expenses relating to short-term leases (included in Other Operating Expenses) 79,852 77,837
Expenses relating to leases of low value assets (included in Other Operating Expenses) 4,555 4,746

These leases have no contingent rent provision included in the contracts. Lease terms do not contain restrictions on the
Group’s activities concerning dividends, additional debt or further leasing. The Group had total cash outflows for leases
of $321,251,000 in the current financial year (2022: $333,254,000).

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Olam Group Limited Annual Report 2023 231
 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

11. Property, plant and equipment

Buildings and Plant and Other Capital work-
Freehold land improvements machinery assets1 in-progress Bearer plants Total
Group $’000 $’000 $’000 $’000 $’000 $’000 $’000
Cost
As at 1 January 2022 251,640 2,398,549 2,923,036 404,742 654,496 2,171,864 8,804,327
Additions in relation to business
combinations – 6,619 64,016 1,090 1,746 – 73,471
Additions 930 21,451 70,910 98,212 545,542 46,729 783,774
Disposals (567) (11,863) (12,299) (19,306) (10,117) – (54,152)
Reclassification (13,360) 72,448 272,299 2,740 (332,947) (1,180) –
Foreign currency translation and
hyperinflation adjustments (6,255) (115,150) (162,783) (41,915) (29,344) (127,204) (482,651)
As at 31 December 2022 and
1 January 2023 232,388 2,372,054 3,155,179 445,563 829,376 2,090,209 9,124,769
Additions in relation to business
combinations – 246 670 213 – – 1,129
Additions 397 57,651 153,012 64,176 363,196 23,416 661,848
Disposals (1,668) (11,752) (45,944) (25,222) (27,219) – (111,805)
Reclassification (8,048) 172,086 413,782 13,303 (589,951) (1,172) –
Foreign currency translation and
hyperinflation adjustments (5,105) (55,024) (106,549) (8,539) 12,864 9,586 (152,767)
As at 31 December 2023 217,964 2,535,261 3,570,150 489,494 588,266 2,122,039 9,523,174
Accumulated depreciation
and impairment loss
As at 1 January 2022 785 623,555 1,190,884 252,347 – 869,681 2,937,252
Charge for the year 91 113,566 220,015 61,423 – 55,738 450,833
Disposals – (10,126) (11,402) (21,337) – – (42,865)
Reclassification – 2,028 (322) (2,005) – 299 –
Foreign currency translation and
hyperinflation adjustments (56) (60,143) (94,655) (32,523) – (53,206) (240,583)
As at 31 December 2022 and
1 January 2023 820 668,880 1,304,520 257,905 – 872,512 3,104,637
Charge for the year – 116,154 232,058 64,764 – 55,217 468,193
Disposals – (6,641) (31,072) (22,035) – – (59,748)
Reclassification – 400 (1,660) 904 – 356 –
Foreign currency translation and
hyperinflation adjustments (12) (14,701) (57,262) (5,028) – 4,424 (72,579)
As at 31 December 2023 808 764,092 1,446,584 296,510 932,509 3,440,503
Net carrying value
As at 31 December 2023 217,156 1,771,169 2,123,566 192,984 588,266 1,189,530 6,082,671
As at 31 December 2022 231,568 1,703,174 1,850,659 187,658 829,376 1,217,697 6,020,132

2. Other assets comprise of motor vehicles, furniture and fittings, office equipment and computers.

The Group’s land, buildings, plant and machinery with a carrying amount of $95,196,000 (2022: $137,787,000) have
been pledged to secure the Group’s borrowings as set out in Note 24. Bearer plants consist of mature and immature
almond orchards, coffee, pepper, palm and rubber plantations. All trees within the Group’s mature plantations
presently consist of trees aged between 1 and 31 years (2022: 1 and 31 years).
Immature plantations mainly consist of almond orchards, pepper, palm and rubber trees aged between 1 and 8 years
(2022: 1 and 7 years) amounting to $84,754,000 (2022: $229,037,000).
At the end of the financial year, the Group’s total planted area of plantations is approximately 108,193 (2022: 110,445)
hectares, excluding hectares for those commodities whose plantations are not managed by the Group.

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12. Intangible assets

Customer Brands and Water Concession
Goodwill relationships trademarks1 Software Rights2 Rights3 Others4 Total
Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Cost
As at 1 January 2022 1,357,492 629,490 524,843 150,610 10,270 91,709 164,148 2,928,562
Additions in relation to business
combinations 39,461 54,106 − − − − 18,946 112,513
Additions − − − 22,634 − − 4,994 27,628
Disposals (1,758) − − (5,573) − (3,872) (281) (11,484)
Foreign currency translation and
hyperinflation adjustments (19,637) (10,763) (3,705) 11,162 (697) (1,984) (24,175) (49,799)
As at 31 December 2022 and
1 January 2023 1,375,558 672,833 521,138 178,833 9,573 85,853 163,632 3,007,420
Additions in relation to business
combinations – 44 – – – – – 44
Additions – – 1,569 27,367 – – 4,753 33,689
Disposals – – – (1,833) – – (2,091) (3,924)
Foreign currency translation and
hyperinflation adjustments (12,159) 6,177 (7,486) (1,027) (139) 6,778 (17,352) (25,208)
As at 31 December 2023 1,363,399 679,054 515,221 203,340 9,434 92,631 148,942 3,012,021
Accumulated amortisation
and impairment
As at 1 January 2022 15,386 122,741 23,877 61,908 − 60,811 65,552 350,275
Amortisation − 40,119 − 18,993 − 4,770 6,171 70,053
Disposals (1,758) − − (1,196) − (1,190) (136) (4,280)
Foreign currency translation and
hyperinflation adjustments 30 (5,476) (168) (2,753) − (1,498) (5,198) (15,063)
As at 31 December 2022 and
1 January 2023 13,658 157,384 23,709 76,952 − 62,893 66,389 400,985
Amortisation – 43,078 – 20,872 – 5,097 6,254 75,301
Disposals – – – (1,052) – – (604) (1,656)
Foreign currency translation and
hyperinflation adjustments (196) 11,316 (339) (578) – 4,792 (15,353) (358)
As at 31 December 2023 13,462 211,778 23,370 96,194 – 72,782 56,686 474,272
Net carrying value
As at 31 December 2023 1,349,937 467,276 491,851 107,146 9,434 19,849 92,256 2,537,749
As at 31 December 2022 1,361,900 515,449 497,429 101,881 9,573 22,960 97,243 2,606,435

Average remaining amortisation period

(years)
– 31 December 2023 – 2 – 14 – 1 – 10 – 1–5 1 – 23
– 31 December 2022 – 1 – 10 – 1 – 13 – 1–6 1 – 24

1. Brands and trademarks include ‘OK Foods’, ‘OK Sweets’, ‘US Cotton’, ‘Jain Farm Fresh Foods’, ‘Gel Spice’ and ‘Olde Thompson’ brands/trademarks.
The useful lives of the brands/trademarks are estimated to be indefinite as management believes there is no foreseeable limit to the period over which
the brands/trademarks are expected to generate net cash flows for the Group.
3. Water rights relate to perpetual access to share of water from a specified consumptive pool.
4. Concession rights consist of rights to harvest trees in designated areas. Amortisation is charged over the estimated useful life of the concession rights.
5. Others comprise land use rights, trade names, marketing agreements and non-compete fees. Land use rights relate to rights to land where the Group
has acquired plantations. Amortisation is charged over the estimated useful lives of the land use rights.

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Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

12. Intangible assets continued

Impairmen t testing of goodwill and other in ta ngib le assets
Goodwill and intangible assets with indefinite lives arising from business combinations have been allocated to the
following cash-generating units (‘CGU’), for impairment testing:-
Goodwill Brands and trademark Water rights
2023 2022 2023 2022 2023 2022
$’000 $’000 $’000 $’000 $’000 $’000
Olam OT Holdings, LLC 486,174 493,244 347,965 353,025 – –
Cocoa Processing Business 245,579 244,312 – – – –
Olam Peanut Shelling Company Inc 121,880 123,652 – – – –
Universal Blanchers 65,415 66,367 – – – –
Club Coffee L.P. 36,131 35,816 – – – –
Olam Spices & Vegetables Ingredients 9,031 9,174 836 848 – –
Progida Group 14,078 7,085 – – – –
Nigeria Wheat Milling Business 263,881 267,719 – – – –
Olam Investment Australia Holdings 7,428 7,537 – – 9,332 9,469
US Cotton 6,700 6,797 17,824 18,083 – –
Packaged Foods brands 31,124 31,576 115,696 117,379 – –
Caraway Africa Nigeria Limited 42,526 43,144 – – – –
Others 19,990 25,477 9,530 8,094 102 104
1,349,937 1,361,900 491,851 497,429 9,434 9,573

The recoverable amounts of the CGUs have been determined based on value in use calculations using cash flow
projections from financial budgets approved by management covering a five year period. The discount rates applied to
the cash flow projections and the forecasted growth rates used to extrapolate cash flows beyond the five year period
are as follows:-

Growth rates Discount rates

2023 2022 2023 2022
% % % %
Olam OT Holdings, LLC 2.00 2.00 9.00 9.50
Cocoa Processing Business 2.00 2.00 9.44 10.00
Olam Peanut Shelling Company Inc 2.00 2.00 8.34 8.00
Universal Blanchers 2.00 2.00 8.34 8.00
Club Coffee L.P. 2.50 2.00 7.81 8.91
Olam Spices & Vegetables Ingredients 5.00 5.00 12.00 12.00
Progida Group 1.00 2.00 18.35 16.90
Nigeria Wheat Milling Business 3.00 3.00 13.79 12.58
Olam Investment Australia Holdings – – 7.71 5.95
US Cotton – – 8.32 6.82
Packaged Foods brands 3.00 3.00 16.00 15.00
Caraway Africa Nigeria Limited 3.00 3.00 15.50 14.50

The calculations of value in use for the CGUs are most sensitive to the following assumptions:-
Forecasted EBITDA – Forecasted EBITDA are based on average values achieved at prevailing market conditions at the
start of the budget period.
Growth rates – The growth rates indicated are as estimated by the management based on published industry research
and do not exceed the long-term average growth rate for the industries relevant to the CGUs. At 1.00% change in
growth rate assumption, the recoverable value would change in the range of 2.9% to 13.2% (2022: 3.7% - 11.8%).
Discount rates – Discount rates reflect management’s estimate of risks specific to each CGU. This is the benchmark
used by management to assess operating performance and to evaluate future investment proposals. At 1.00% change
in discount rate assumption, the recoverable value would change in the range of 3.9% to 16.2% (2022: 3.6% - 15.0%).

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13. Biological assets

Fruits on trees and
annual crops Livestock Poultry Total
Group $’000 $’000 $’000 $’000
As at 1 January 2022 366,465 113,075 9,473 489,013
Net (reductions)/additions (5,855) (101,118) (3,651) (110,624)
Capitalisation of expenses 42,205 70,042 – 112,247
Net change in fair value less estimated costs to sell 29,622 61,281 – 90,903
Foreign currency translation adjustments (25,147) 2,914 (215) (22,448)
As at 31 December 2022 and 1 January 2023 407,290 146,194 5,607 559,091
Net (reductions)/additions (73,584) (81,508) 2,363 (152,729)
Capitalisation of expenses 63,598 60,361 – 123,959
Net change in fair value less estimated costs to sell 18,559 47,745 – 66,304
Foreign currency translation adjustments (4,588) (34,894) (118) (39,600)
As at 31 December 2023 411,275 137,898 7,852 557,025

Fruits on trees
During the financial year, the Group harvested approximately 55,423 metric tonnes (2022: 56,997 metric tonnes)
of almonds, which had a fair value less estimated point-of-sale costs of approximately $272,319,000 (2022:
$421,203,000) net of exceptional loss of $166,424,000 on the Australia almonds due to a lower crop yield on harvesting
(Note 38(1)). The fair value of almonds was determined with reference to the market prices at the date of harvest.
The fair value of fruits on trees (almonds) is estimated using the present value of expected net cash flows from the
biological assets. The following table shows the key inputs used:-
Key inputs Inter-relationship between key inputs and fair value measurement
Discount rates of 8.0% (2022: 8.0%) per annum The estimated fair value increases as the estimated
discount rate per annum decreases, and vice versa.
Market prices approximating $9,038 (2022: $9,312) per metric tonne The estimated fair value increases as the respective
inputs increase, and vice versa.
Estimated yields per annum from harvest approximating 51,237 metric tonnes The estimated fair value increases as the respective
inputs increase, and vice versa.

Annual crops
Annual crops consist of various commodities such as cotton, onions, tomatoes, other vegetables and rice. For onions,
tomatoes and other vegetables, the Group provides seeds to farmers to sow and grow. For such annual crops where seeds
are provided, the Group continues to control the crops throughout the process as the Group has continued ownership of the
seeds (and crops being grown) during the period of growing up to harvest although the farmers take all the harvest risks and
bear all the farming costs. The Group has the contractual obligation to buy the produce from these farmers, when these
annual crops are harvested, if the specified quality is met. For cotton and rice, the Group manages its own farms.
At the end of the financial year, the Group’s total planted area of annual crops is approximately 95,328 (2022: 85,114)
hectares, excluding for those commodities where farms are not managed by the Group.
The annual crops have been valued using adjusted cost, based on the estimate of the yield and cost of the crop at
harvest discounted for the remaining time to harvest, which approximates fair value.
Livesto ck
Livestock relates mainly to dairy cattle in Russia. At the end of the financial year, the Group held approximately 14,000
(2022: 13,000) cows, which are able to produce milk (mature assets) and approximately 19,000 (2022: 20,000) heifers
and calves, being raised to produce milk in the future (immature assets). The cows produced approximately 161 million
litres (2022: 157 million litres) of milk with a fair value less estimated point-of-sale costs of $140,101,000 (2022:
$159,982,000) during the financial year.
The fair value of livestock is determined based on valuations using the income approach by an independent professional valuer
using market prices ranging from $1,889 to $4,846 (2022: $2,107 to $5,359) of livestock of similar age, breed and generic merit.
Poultry
Poultry relates mainly to parent birds (chickens) for producing day-old chicks in Nigeria. At the end of the financial
year, the Group held approximately 344,000 in 2023 (2022: 247,000) chickens.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

13. Biological assets continued

Fina ncia l risk management strategies rel a ted to agric ultural acti vities
The Group is exposed to financial risk in respect of agricultural activity. The agricultural activity of the Group consists of
the management of biological assets to produce marketable output. The primary financial risk associated with this
activity occurs due to the length of time between expending cash on the purchase or planting and maintenance of
biological assets and on harvesting and ultimately receiving cash from the sale of the marketable output. The Group
plans for cash flow requirements for such activities and manages its debt and equity portfolio actively.
14. Subsidiary companies
Company
2023 2022
$’000 $’000
Unquoted equity shares at cost 6,222,745 6,407,175
Foreign currency translation adjustments (89,195) (184,430)
6,133,550 6,222,745
Loans to subsidiary companies 19,805 20,093
6,153,355 6,242,838

Loans to subsidiary companies are unsecured, non-interest bearing and are not repayable within the next 12 months.
Acquisitio n of remaining 15% ownersh ip interest from non-co nt rolli ng in t erest in one subsid iary
In the current financial year, the Group acquired remaining 15% ownership interest in YTS Holdings Pte Ltd for a total
consideration of US$22,320,000 (approximately $29,940,000). Out of the total consideration, US$19,500,000
(approximately $26,157,000) has been paid with US$2,820,000 (approximately $3,783,000) to be deferred and paid
quarterly over twelve equal instalments of US$235,000 (approximately $315,000) each. The net impact on the
acquisition amounting to US$13,107,000 (approximately $17,582,000) has been adjusted in ‘Capital Reserves’ in equity.
P a r tia l d iv es t m en t o f s u b s i d ia r y
In the prior financial year, the Group through a wholly-owned subsidiary completed the sale of 35.43% stake in the
Olam Agri business to SALIC International Investment Company. The Group has received cash proceeds of
US$1,240,000,000 (approximately $1,710,229,000) and has recorded the resultant gain of $1,196,347,000, net of
transaction cost, to its capital reserves in equity. Following the completion of the sale, the Group owns 64.57% of Olam
Agri Holdings Limited, the holding company for all of the Olam Agri businesses, with the balance of 35.43% owned by
SALIC International Investment Company.
During the current financial year, there was an adjustment to the original consideration paid in the prior year amounting
to US$50,310,000 (approximately $67,355,000) as a result of the net assets adjustment upon conclusion of the audited
subgroup financial statements. This has been recorded in ‘Capital Reserves’ in equity.

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14. Subsidiary companies continued

Compositio n of the G roup
Details of significant subsidiary companies are as follows:-
Effective percentage of equity held
by the Group
2023 2022
Name of company Country of incorporation Principal activities % %
Subsidiaries held by the Company:
Olam International Limited 1 Singapore (a) & (b) 100 100
Olam Holdings Pte Ltd 1 Singapore (b) 100 100

Subsidiaries held by Olam International Limited:

Olam Treasury Pte Ltd 1 Singapore (d) 100 100
Olam Cocoa Pte Ltd 1 Singapore (a) 100 100
Olam Cocoa Processing Ghana Limited 2 Ghana (a) 100 100
Olam Ivoire SA 2 Ivory Coast (a) 100 100
Outspan Ivoire SA 2 Ivory Coast (a) 100 100
Olam Cocoa Processing Cote d’Ivoire 2 Ivory Coast (a) 100 100
Outspan Nigeria Limited 2 Nigeria (a) 100 100
Olam Vietnam Limited 2 Vietnam (a) 100 100
Café Outspan Vietnam Limited 2 Vietnam (a) 100 100
PT Olam Indonesia 2 Indonesia (a) 100 100
Olam Food Ingredients India Private Limited 3
(f.k.a. Olam Agro India Private Limited) India (a) 100 100
Olam Agricola Ltda. 2 Brazil (a) 100 100
Olam Holdings Inc 4 The United States of America (a), (b) & (c) 100 100
Olam Orchards Australia Pty Ltd 2 Australia (a) & (c) 100 100
Seda Outspan Iberia S.L. 2 Spain (a) 100 100
ofi Tarim Sanayi ve Ticaret A.Ş. 2
(f.k.a. Progda Tarm Űrűnleri Sanayi ve Ticaret A.Ş.) Turkey (a) 100 100
Olam Holdings B.V. 3 Netherlands (b) 100 100
Olam Cocoa B.V. 3 Netherlands (a) 100 100

Subsidiaries held by Olam Holdings Pte Ltd:

Olam Agri Holdings Limited 1
(f.k.a. Olam Agri Holdings Pte. Ltd.) Singapore (b) 64.57 64.57
Olam Global Holdco Pte Ltd 1 Singapore (b) 100 100
LLC Russian Dairy Company 3 Russia (c) 100 100
Gabon Fertilizer Company SA 2 Gabon (a) 80 80
Olam Palm Gabon SA 2 Gabon (a) & (c) 60 60
Olam Rubber Gabon SA 2 Gabon (a) & (c) 60 60
Caraway Pte Ltd 1 Singapore (a) & (b) 75 75
OK Foods Limited 2 Nigeria (a) & (b) 75 75
Caraway Africa Nigeria Limited 2 Nigeria (a) 75 75
Olam Sanyo Foods Limited 2 Nigeria (a) 75 75
Nutrifoods Ghana Limited 2 Ghana (a) 75 75

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Olam Group Limited Annual Report 2023 237
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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

14. Subsidiary companies continued

Composition of the Group continued
Details of significant subsidiary companies are as follows:-
Effective percentage of equity held
by the Group
2023 2022
Name of company Country of incorporation Principal activities % %
Subsidiaries held by Olam Agri Holdings Limited:
Olam Global Agri Pte Ltd 1 Singapore (a) & (b) 100 100
Olam Maritime Freight Pte. Ltd. 1 Singapore (e) 100 100
Olam Global Agri Treasury Pte. Ltd. 1 Singapore (d) 100 100
Olam Agri Ghana Limited 2
(f.k.a. Olam Ghana Limited) Ghana (a) 100 100
Societe d’exploitation cotonniere Olam 2 Ivory Coast (a) 100 100
Olam Agri Rubber Cote D'Ivoire 2
(f.k.a Societe Agro Industrielle de la Comoe) Ivory Coast (a) 100 100
Cotontchad SN 3 Chad (a) 60 60
Nouvelle Société Cotonnière du Togo 3 Togo (a) 51 51
Olam Agri Senegal S.A. 2
(f.k.a Olam Senegal S.A.) Senegal (a) 100 100
Olam Nigeria Limited 2 Nigeria (a) 100 100
Crown Flour Mills Limited 2 Nigeria (a) 100 100
Quintessential Foods Nigeria Limited 2 Nigeria (a) 100 100
Olam Flour Mills Limited 2
(f.k.a. Dangote Flour Mills PLC) Nigeria (a) 100 100
Olam Hatcheries Limited 2 Nigeria (a) 100 100
Olam South Africa (Proprietary) Limited 2 South Africa (a) 100 100
Olam Agri India Private Limited 2
(f.k.a. Outspan India Private Limited) India (a) 100 100
Olam Brasil Ltda. 2 Brazil (a) & (c) 100 100
Olam Agri Americas Holdings, Inc. 4
(f.k.a. QC (US) International, Inc.) The United States of America (a) & (b) 100 100
Queensland Cotton Holdings Pty Ltd 2 Australia (a) & (b) 100 100
Congolaise Industrielle des Bois SA 2 Congo (a) 100 100
Olam Cam SA 2 Cameroon (a) 100 100
Olam America Cotton Company Ltd 4 Cayman Islands (a) 100 100

(a) Sourcing, processing, packaging and merchandising of agricultural products and inputs.
(b) Investment holding.
(c) Agricultural operations.
(d) Treasury activities.
(e) Freight operations.
1. Audited by Ernst & Young, Singapore.
2. Audited by member firms of Ernst & Young Global.
3. Audited by local CPA firms.
4. No statutory audit required as per local laws.

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15. Investments in joint ventures and associates

Group

2023 2022
$’000 $’000
Joint ventures (Note 15(a)) 14,126 13,118
Associates (Note 15(b)) 263,257 260,553
277,383 273,671

a. Investm en ts in joint ven tur es

Group
2023 2022
$’000 $’000
Unquoted equity shares at cost 20,437 19,132
Loan to joint ventures 528 –
Share of post-acquisition reserves (3,854) (3,251)
Less: Impairment loss (2,255) (2,233)
Foreign currency translation adjustments (730) (530)
14,126 13,118

List of key joint ventures of the Group are as follows:-

Effective percentage of equity held
Name of company 2023 2022
(Country of incorporation) Principal place of business Principal activities % %
Aztec Agri B.V. 1 (Netherlands) Indonesia Agricultural operations 50.0 50.0
OSC Hanse Dienstleistungs GmbH 3 (Germany) Germany Agricultural operations 49.0 –
Proclass Pty Limited 2 (Australia) Australia Agricultural operations 20.0 20.0
Cotton JV Pty Limited 2 (Australia) Australia Agricultural operations 50.0 50.0
Coleambally Ginning Pty Ltd 2 (Australia) Australia Agricultural operations 50.0 50.0
Mitrsuphan Rice Co. Ltd. 3 (Thailand) Thailand Agricultural operations 49.0 49.0

1. Audited by Steens & Partners.

2. Audited by member firms of Ernst & Young Global.
3. Audited by local CPA firms.

Investment in new joint venture

In the current financial year, the Group acquired 49% stake in OSC Hanse Dienstleistungs GmbH (“Hanse”)
registered in the commercial register of the Humburg, Germany. Management has assessed and is satisfied that
the Group has joint control over Hanse as the Group holds positions in the Board of Directors of the entity, actively
participates in all board meetings of the underlying business.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

15. Investments in joint ventures and associates continued

a. Investments in joint ventures continued
As of 31 December 2023 and 31 December 2022, no joint venture was individually material to the Group. The
summarised financial information in respect of the joint ventures, based on its SFRS(I) financial statements and
reconciliation with the carrying amount of the investments in the combined financial statements are as follows:-
Group
2023 2022
$’000 $’000
Summarised balance sheet
Non-current assets 44,098 35,637
Current assets 59,943 47,151
Total assets 104,041 82,788

Non-current liabilities 19,502 17,961

Current liabilities 55,727 33,091
Total liabilities 75,229 51,052

Net assets 28,812 31,736

Proportion of the Group’s ownership:
Group’s share of net assets 13,026 12,739
Loan to joint venture 528 –
Goodwill on acquisition 124 148
Other adjustments 448 231
Carrying amount of the investments 14,126 13,118

Summarised statement of comprehensive income

Revenue 161,503 117,728
Loss after tax (7,166) (3,032)
Other comprehensive income (215) (118)
Total comprehensive income (7,381) (3,150)

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15. Investments in joint ventures and associates continued

b. Investm en ts in assoc iates
Group
2023 2022
$’000 $’000
Unquoted equity shares at cost 248,828 240,346
Share of post-acquisition reserves 14,965 8,783
Loan to associate 1 3,876 3,933
Foreign currency translation adjustments (4,412) 7,491
263,257 260,553

1. Loan to associate is unsecured, not expected to be repayable within the next 12 months and are interest-free.

List of key associates of the Group are as follows:-

Effective percentage of equity held
Name of company 2023 2022
(Country of incorporation) Principal place of business Principal activities % %
ARISE P&L Limited 1 Gabon Managing port and 32.41 32.41
(United Kingdom) logistics infrastructure
Stamford Panasia Shipping Pte Ltd 2 Singapore Shipping & logistics 49.00 49.00
Stamford Next Generation Shipping Pte Ltd 2 Singapore Shipping & logistics 49.00 49.00

1. Audited by BDO LLP UK.

2. Audited by local CPA.

Investment in associate
In 2022, the Company had entered into an agreement to divest the investment in associate - Food Security Holding
Company for a consideration amounting to approximately $25,749,000 (US$18,667,000). As at 31 December 2022,
the divestment was not completed due to existing conditions precedent to the sale and purchase agreement not
being met and management has accounted for the investment as ‘Non-current asset held of sale’ on the balance
sheet as a ‘Current’ asset in accordance with SFRS(I) 5 (Note 21).
The sale has been legally completed in the current financial year and the net gain on disposal of $7,156,000 has
been recorded in ‘Other Income’ in the profit and loss account.

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 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

15. Investments in joint ventures and associates continued

b. Investments in associates continued
As of 31 December 2023 and 31 December 2022, no associate was individually material to the Group. The
summarised financial information in respect of the associates based on its SFRS(I) financial statements and
reconciliation with the carrying amount of the investment in the combined financial statements are as follows:-
Group
2023 2022
$’000 $’000
Summarised balance sheet
Non-current assets 1,461,040 1,472,350
Current assets 528,792 539,081
Total assets 1,989,832 2,011,431

Non-current liabilities 424,908 444,362

Current liabilities 567,915 575,601
Total liabilities 992,823 1,019,963

Net assets 997,009 991,468

Proportion of the Group’s ownership:
Group’s share of net assets 263,257 260,553
Carrying amount of the investments 263,257 260,553

Summarised statement of comprehensive income

Revenue 847,050 1,045,176
Profit after tax 15,013 76,828
Other comprehensive income 22,106 (47,889)
Total comprehensive income 37,119 28,939

16. Amounts due from subsidiary companies (net)

Company
2023 2022
$’000 $’000
Loans to subsidiaries, net 810,665 878,714
Non-trade payables (167,255) (247,808)
643,410 630,906

Loans to subsidiaries, net include loan to a subsidiary amounting to $738,577,000 (2022: $913,541,000) which bear
interest at 6.72% (2022: 5.23%) per annum, repayable on demand and are to be settled in cash. The remaining amount
is non-interest bearing, unsecured, repayable on demand and are to be settled in cash.

The other amounts are non-interest bearing, unsecured, subject to trade terms or repayable on demand, and are to be
settled in cash.

Amounts due from subsidiary companies (net) denominated in currencies other than functional currency of the
Company are as follows:-
Company
2023 2022
$’000 $’000
Singapore Dollar (373,617) (12,847)

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17. Trade receivables

Group
2023 2022
$’000 $’000
Trade receivables 3,041,032 2,581,709
Indirect tax receivables 295,435 273,801
3,336,467 2,855,510

Trade receivables are non-interest bearing and are subject to trade terms of 30 to 60 days’ terms. They are recognised
at their original invoice amounts, which represent their fair values on initial recognition. Indirect tax receivables comprise
goods and services, value-added taxes and other indirect forms of taxes.
The Group have factoring facilities utilised by the Company and certain wholly-owned subsidiaries, whereby trade
receivables are sold at their nominal value minus a discount ranging from 2.0% - 5.0% (2022: 2.0% - 3.0%) in exchange
for cash, on a non-recourse basis. The amount of the receivables sold net of discounts and derecognised as at
31 December 2023 amounted to $867,753,000 (2022: $1,242,809,000).
Trade receivables denominated in currencies other than functional currencies of Group companies are as follows:-
Group
2023 2022
$’000 $’000
Euro 289,801 455,617
United States Dollar 78,108 158,253
Great Britain Pounds 73,268 52,409

Trade receivables include amounts due from associate of $12,657,000 (2022: $6,434,000) and due from joint ventures
of $1,1,39,000 (2022: 6,398,000) and due from shareholder related companies of $11,132,000 (2022: $5,509,000).
The expected credit loss provision as at 31 December 2023 and 2022 is determined as follows:-
Group
2023 2022
$’000 $’000
Trade receivables measured at amortised cost 3,162,281 2,699,468
Less: Lifetime expected credit loss for trade receivables (121,249) (117,759)
Total trade receivables measured at amortised cost 3,041,032 2,581,709

Movement in allowance accounts:-

As at beginning of year 117,759 97,290
Charge for the year 28,745 35,575
Written back (18,774) (9,378)
Written off (3,851) (16,840)
Foreign currency translation adjustments (2,630) 11,112
As at end of year 121,249 117,759

R ec ei v a b l es t h a t a r e p a s t d u e b u t n o t i m p a ir ed
The analysis of the Group’s ageing for receivables that are past due but not impaired is as follows:-
Group
2023 2022
$’000 $’000
Trade receivables past due but not impaired:-
Less than 30 days 591,008 363,767
30 to 60 days 108,215 268,370
61 to 90 days 34,818 72,287
91 to 120 days 40,650 65,999
121 to 180 days 11,022 69,695
More than 180 days 23,830 34,795

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

18. Margin accounts with brokers

Margin accounts are maintained with recognised futures dealers and brokers for trades done on the futures exchanges. These
margin accounts move in relation to trades done on futures, variation margins required and prices of the commodities traded.
These amounts reflect the payments made to futures dealers as initial and variation margins depending on the volume
of trades done and price movements.
Group
2023 2022
$’000 $’000
Margin deposits with brokers 421,042 318,589
Amounts due to brokers (610,591) (255,814)
(189,549) 62,775

19. Inventories
Group
2023 2022
$’000 $’000
Balance sheets:
Commodity inventories at fair value 5,757,804 4,569,514
Commodity inventories at the lower of cost and net realisable value 4,052,248 4,377,810
9,810,052 8,947,324
Profit and loss account:
Inventories recognised as an expense in cost of goods sold inclusive
of the following (charge)/credit: (39,138,027) (42,717,102)
• Inventories written down (52,727) (65,761)
• Reversal of write-down of inventories 1 22,238 15,346

1. The reversal of write-down of inventories is made when the related inventories are sold above their carrying amounts.

20. Advance payments to suppliers

Group
2023 2022
$’000 $’000
Advances to suppliers – procurement of physical commodities 828,867 553,508
Advances to suppliers – capital expenditure 41,811 29,137
870,678 582,645

Advance payments to suppliers denominated in currencies other than functional currencies of Group companies are as follows:-
Group
2023 2022
$’000 $’000
Euro 45,629 20,640
United States Dollar 24,902 14,865
Great Britain Pounds 6 8

The movement in the allowance accounts for advance payment to suppliers is as follows:-
Group
2023 2022
$’000 $’000
Movement in allowance accounts:-
As at beginning of year 22,863 13,863
Charge for the year 14,895 14,921
Written back (6,896) (1,522)
Written off (2,452) (3,336)
Foreign currency translation adjustments (2,009) (1,063)
As at end of year 26,401 22,863

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21. Other current/non-current assets

Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Current:
Sundry receivables 1 272,444 208,976 – –
Export incentives and subsidies receivable 2 151,312 118,693 – –
Amount due from a third party 3 88,877 6,645 –
Deposits 43,205 49,340 – –
Staff advances 4 9,385 11,632 – –
Insurance receivables 5 84,091 40,687 – –
Short-term investment 2,347 1,726 – –
651,661 437,699 – –
Prepayments 6 387,637 320,499 – 5,767
Advance corporate tax paid 122,984 132,843 – –
Taxes recoverable – 5 – –
1,162,282 891,046 – 5,767
Non-current:
Other non-current assets 66,039 42,240 – –

1. Included in Sundry receivables is an amount of $9,271,000 that remains outstanding and to be received in 2024 in relation to the fourth and final
instalment payment of the sale of a joint venture to a third party in the prior years.
2. These relate to incentives and subsidies receivable from the Government agencies of various countries for subsidised agricultural input and export of
agricultural products. There are no unfulfilled conditions or contingencies attached to these incentives and subsidies.
3. Amount due from a third party is non-interest bearing, unsecured, repayable on demand and are to be settled in cash.
4. Staff advances are interest-free, unsecured, repayable within the next 12 months and are to be settled in cash.
5. Insurance receivables mainly pertain to pending marine, forced abandonment and inventories insurance claims. The outstanding claims are currently
being processed by the insurance companies for final settlement.
6. Prepayments mainly pertain to prepaid shipping and logistics related expenses incurred for sourcing, processing, packaging and merchandising
of agricultural products and inputs.

Non-current assets held fo r sale

In the current financial year, the non-current assets held for sale relates to closed business of NZ Farming system
Uruguay in Uruguay amounting to $1,145,000, for which the sale had not completed as at 31 December 2023.

Non-c urr ent assets

Non-current assets mainly relates to:
i. Deposits of $33,616,000 (2022: $4,390,000) placed with financial institutions with maturity more than 12 months. These
deposits earned interest at bank deposit rates ranging from 5.45% to 9.12% (2022: 5.45% to 9.03%) per annum.
ii. Loan receivable from a joint venture amounting to $13,203,000 (2022: $13,395,000) that is unsecured, bear interest
at 6.25% per annum and repayable over the period of 5 years.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

22. Trade payables and accruals

Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Trade payables 3,827,949 3,180,998 – –
Accruals 911,730 947,666 3,033 2,957
4,739,679 4,128,664 3,033 2,957
Advances received from customers 158,929 110,091 – –
GST payable and equivalent 91,083 88,434 – –
4,989,691 4,327,189 3,033 2,957

Trade payables are non-interest bearing. Trade payables are subject to trade terms of 30 to 60 days’ terms while other
payables have an average term of two months.
Trade payables and accruals denominated in currencies other than functional currencies of Group companies are as follows:-
Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Great Britain Pounds 859,873 494,665 – –
Euro 240,918 132,808 – –
United States Dollar 80,711 90,798 – –
Singapore Dollar 27,051 13,302 3,033 2,934
Australian Dollar 286,905 242,769 – –

Accruals mainly relate to operating costs such as logistics, insurance premiums and employee benefits.

23. Other current/non-current liabilities

Group
2023 2022
$’000 $’000
Current:
Interest payable on bank loans 55,150 56,684
Sundry payables 349,934 418,893
405,084 475,577
Withholding tax payable 15,897 16,600
420,981 492,177

Non-current:
Other non-current liabilities 66,124 67,114

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24. Borrowings and lease liabilities

Borrowings
Group
2023 2022
$’000 $’000
Current:
Bank overdrafts (Note 33) 355,672 190,434
Bank loans 5,862,633 4,228,800
Term loans from banks 42,742 96,958
Medium-term notes 158,345 535,778
6,419,392 5,051,970
Non-current:
Term loans from banks 7,304,571 8,520,329
Medium-term notes 1,588,744 1,546,423
8,893,315 10,066,752
Total borrowings 15,312,707 15,118,722

Lease liabilities – Current 131,039 140,766

Lease liabilities – Non-current 850,125 886,256
Total lease liabilities 981,164 1,027,022

Total borrowings and lease liabilities 16,293,871 16,145,744

Borrowings denominated in currencies other than functional currencies of Group companies are as follows:-
Group
2023 2022
$’000 $’000
Singapore Dollar 598,402 597,661
Japanese Yen 856,322 430,026
United States Dollar 82,483 39,648

Bank overdra f ts and bank l oans

The bank loans and bank overdrafts of the subsidiary companies are repayable within 12 months and bear interest in a
range from 0.60% to 42.00% (2022: 0.60% to 35.83%) per annum.
Bank loans include an amount of $54,414,000 (2022: $22,848,000) secured by the assets of subsidiaries. The remaining
amounts of bank loans are unsecured.
Term loans from banks
Term loans from banks of the subsidiary companies bear interest at floating interest rates ranging from 0.60% to
21.50% (2022: 0.60% to 10.00%) per annum. Term loans from banks to the subsidiary companies are repayable
between one to fifteen years (2022: one to fourteen years).
Term loans from banks include an amount of $52,026,000 (2022: $89,566,000) secured by the assets of subsidiaries.
The remaining amounts of term loans from banks are unsecured.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

24. Borrowings and lease liabilities continued

Medium- term notes
The Group has a US$5,000,000,000 Euro medium-term notes (‘EMTN’) programme. The drawdowns from the EMTN are
unsecured. The EMTN are as follows:-
Group
2023 2022
Maturity $’000 $’000
Current:
Euro medium-term note programme:
• 4.375% fixed rate notes 2023 – 401,828
Other medium-term notes:
• 4.35% fixed rate notes 2023 – 133,950
• 3.89% fixed rate notes 2024 158,345 –
158,345 535,778
Non-current:
Euro medium-term note programme:
• 2.05% fixed rate notes 2025 65,477 71,427
• 4.00% fixed rate notes 2026 598,402 597,661
• 3.25% fixed rate notes 2026 131,941 133,819
• 1.61% fixed rate notes 2026 84,183 91,841
• 1.403% fixed rate notes 2026 51,090 55,597
• 6.90% floating rate notes 2028 66,015 –
Other medium-term notes:
• 3.89% fixed rate notes 2024 – 160,740
• 3.27% fixed rate notes 2025 65,844 66,975
• 3.05% fixed rate notes 2027 262,788 267,900
• 3.25% fixed rate notes 2029 99,023 100,463
• 5.33% floating rate notes 2028 33,008 –
• 5.33% floating rate notes 2030 130,973 –
1,588,744 1,546,423

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24. Borrowings and lease liabilities continued

L ea s e l ia b il it i es
Group
2023 2022
$’000 $’000
As at 1 January 1,027,022 977,815
Additions/(derecognition), net 124,183 258,696
Accretion of interest (Note 8) 57,582 58,698
Payments (212,496) (218,329)
Foreign currency translation adjustment (15,127) (49,858)
As at 31 December 981,164 1,027,022

Current 131,039 140,766

Non-current 850,125 886,256

Lease liabilities include variable rent payments amounting to $324,725,000 (2022: $336,270,000) which is based on
expected future harvest yields and future market prices of agricultural products.

Leases amounting to $3,836,000 (2022: $7,757,000) are guaranteed by a subsidiary company.

Lease liabilities bear interest ranging from 1.00% to 13.50% (2022: 0.41% to 14.77%) per annum and are repayable
between 1 and 37 years (2022: 1 and 38 years).
Ch a n g e in l ia b il it ies a r is ing f r o m f in a n c i n g a c t iv it ie s
A reconciliation of liabilities arising from financing activities is as follows:-
Group
2022 Cash flows 2023
$’000 $’000 Non-cash changes $’000
Net movement in Acquisition of Foreign exchange
lease liabilities subsidiary movement
$’000 $’000 $’000

Bank borrowings (excluding bank overdrafts

and lease liabilities) 12,846,087 680,608 – – (316,749) 13,209,946
Lease liabilities 1,027,022 (159,397) 128,666 – (15,127) 981,164
Medium-term notes 2,082,201 (310,146) – – (24,966) (1,747,089)

Group
2021 Cash flows 2022
$’000 $’000 Non-cash changes $’000
Net movement in Acquisition of Foreign exchange
lease liabilities subsidiary movement
$’000 $’000 $’000
Bank borrowings (excluding bank overdrafts
and lease liabilities) 12,576,743 404,129 – 42,848 (177,633) 12,846,087
Lease liabilities 977,815 (165,696) 236,419 28,680 (50,196) 1,027,022
Medium-term notes 2,999,893 (923,150) – – 5,458 2,082,201

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Olam Group Limited Annual Report 2023 249
 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

25. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the year attributable to owners of the Company by
the weighted average number of ordinary shares outstanding (excluding treasury shares) during the year.
Diluted earnings per share is calculated by dividing the adjusted net profit attributable to owners of the Company by
the weighted average number of ordinary shares outstanding (excluding treasury shares) during the year adjusted for
the effects of dilutive shares and options.
The following reflects the profit and share data used in the basic and diluted earnings per share computations for the
financial years ended 31 December:-
Group
2023 2022
$’000 $’000
Net profit attributable to owners of the Company 278,721 629,091
Less: Accrued capital securities distribution (32,491) (40,943)
Adjusted net profit attributable to owners of the Company for basic and dilutive earnings per share 246,230 588,148

No. of shares No. of shares

Weighted average number of ordinary shares on issue applicable to basic earnings per share 3,791,037,447 3,772,770,487

Dilutive effect of performance share plan 52,866,653 54,349,727

Adjusted weighted average number of ordinary shares applicable to diluted earnings per share 3,843,904,100 3,827,120,214

There have been no other transactions involving ordinary shares or potential ordinary shares since the reporting date
and the date of these financial statements.
26. Share capital, treasury shares, perpetual capital securities and warrants
a. Share capita l
Group
31 December 2023 31 December 2022
No. of shares $’000 No. of shares $’000
Ordinary shares issued and fully paid 1
Balance at beginning of year 3,842,625,185 6,233,595 3,752,443,181 4,339,545
Issue of treasury shares on exercise of share options – – 8,328,030 26,564
Cancellation of treasury shares – – (647) (1)
Issue of shares to shareholders on group re-organisation – – 81,854,621 1,867,487
Balance at end of year 3,842,625,185 6,233,595 3,842,625,185 6,233,595

1. The holders of ordinary shares are entitled to receive dividends as and when declared by the Group. All ordinary shares carry one vote per share
without restriction. The ordinary shares have no par value.

Company
31 December 2023 31 December 2022
No. of shares $’000 No. of shares $’000
Ordinary shares issued and fully paid 1
Balance at beginning of year 3,842,625,185 6,233,595 1 –*
Issue of shares to shareholders on group re-organisation – – 3,842,625,184 6,233,595
Balance at end of year 3,842,625,185 6,233,595 3,842,625,185 6,233,595

1. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per
share without restriction. The ordinary shares have no par value.
* Amount is less than $1,000

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26. Share capital, treasury shares, perpetual capital securities and warrants continued
b. Treas ury shar es
Group
31 December 2023 31 December 2022
No. of shares $’000 No. of shares $’000
Ordinary shares issued and fully paid
Balance at beginning of year 1 4,868,700 6,543 61,861,826 114,446
Use of treasury shares for share awards/options 2 (226,700) (367) (61,861,826) (114,446)
Share buyback during the year 3 20,810,000 24,870 4,868,700 6,543
Balance at end of year 25,452,000 31,046 4,868,700 6,543

1. All ordinary shares carry one vote per share without restriction. The ordinary shares have no par value.
2. A total of 226,700 treasury shares were transferred to Non-Executive Directors, representing approximately 30% remuneration in lieu of cash for
the financial year ended 31 December 2023. OIL used 61,861,826 treasury shares during the previous financial year towards the release of the
employees share options, performance share awards and restricted share awards.
3. These treasury shares relate to those of the Company that were bought back during the current financial year.

Company
31 December 2023 31 December 2022
No. of shares $’000 No. of shares $’000
Ordinary shares issued and fully paid 1
Balance at beginning of year 4,868,700 6,543 – –
Use of treasury shares for share awards/options (226,700) (367) – –
Share buyback during the year 2 20,810,000 24,870 4,868,700 6,543
Balance at end of year 25,452,000 31,046 4,868,700 6,543

1. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per
share without restriction. The ordinary shares have no par value.
2. These treasury shares relate to those of the Company that were bought back during the current financial year.

c. Shares h eld in tr ust

All remaining Restricted Share Awards (“RSAs”) under the OSGP were approved for early vesting and a trust was
concurrently set up to allow the unvested RSAs to be issued and/or transferred to the trustee to be held under the trust.
Under the trust arrangement, such share awards will be released by the trustee to the respective RSA holders in accordance
with the original vesting schedule and subject to the same conditions for vesting as provided in the RSA under OSGP.
d . Ca p ita l s ec u r it ies
Combined $550,375,000 5.375% Perpetual Capital Securities
On 18 January 2021, 26 April 2021 and 23 November 2021, the Company issued subordinated perpetual capital
securities (the ‘capital securities’) with an aggregate combined principal amount of $550,375,000 ($250,000,000,
$100,000,000, $50,000,000 and $150,375,000 respectively) under the US$5,000,000,000 EMTN Programme.
Issuance costs incurred amounting to $4,040,000 were recognised in equity as a deduction from proceeds.
The capital securities amounting to $400,000,000 were priced at par and bear a distribution rate of 5.375% for the
first five years. The remaining amount of $150,375,000 which bears a distribution rate of 5.375% for the first five
years was priced at a premium of 0.25%.
The distribution rate for all capital securities will then be reset at the end of five years from the issue date of the
capital securities and each date falling every 5 years thereafter. Additionally, Olam may choose to redeem in whole
the capital securities on or after the fifth anniversary of the issuance of the capital securities.

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Olam Group Limited Annual Report 2023 251
Financial report
Financial report
Notes to the Financial Statements
Notes to the
Financial Financial Statements continued
report
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
Notes to the Financial Statements continued
For the financial year ended 31 December 2023

27. Dividends
Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Declared and paid during the financial year ended:-
Dividends on ordinary shares:
• One tier tax exempted interim dividend for financial year ended
31 December 2023: $0.03 (2022: $0.04) per share 115,005 153,705 115,005 153,705
• One tier tax exempted second and final dividend for financial year
ended 31 December 2022: $0.045 (2021: $0.045) per share 172,709 172,524 172,709 –
287,714 326,229 287,714 153,705
Proposed but not recognised as a liability as at:-
Dividends on ordinary shares, subject to shareholders’ approval
at the Annual General Meeting:
• One tier tax exempted second and final dividend for financial
year ended 31 December 2023: $0.04 (2022: $0.045) per share 152,687 172,699 152,687 172,699

28. Capital commitments

Capital expenditure contracted for as at the balance sheet date but not recognised in the financial statements is as follows:-
Group
2023 2022
$’000 $’000
Capital commitments in respect of property, plant and equipment 44,532 63,948

29. Contingent liabilities

Company
2023 2022
$’000 $’000
Contingent liabilities not provided for in the accounts:
Financial guarantee contracts given on behalf of subsidiary companies that were drawn-down
at 31 December 1 17,854,065 17,422,789

1. Amounts utilised by subsidiary companies on the bank facilities secured by corporate guarantees amounted to $11,558,609,000 (2022: $5,653,352,000).

The Company has agreed to provide continuing financial support to certain subsidiary companies.

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29. Contingent liabilities continued

Legal and reg ulatory proceedings
The Group is subject to various legal proceedings as detailed below:

i. The Brazilian Public Ministry of Labor filed proceedings in the 2nd Labor Court in Ilhéus/State of Bahia in Brazil
against the Group in connection with the regulatory and enforcement authorities investigations, we received a
favourable ruling and are now currently awaiting to determine if the decision is final or appealable.

ii. The Group was named in federal class action lawsuit in the United States District Court of New Columbia in
connection with the regulatory and enforcement authorities investigations, with the Group achieved success in the
Joint Motion to Dismiss the Collingsworth case, however the Plaintiff has appealed and the appeal is pending.

iii. On June 10, 2022, a wholly-owned subsidiary of the Company – Olam Global Agri Pte Ltd (“OGAPL”) chartered an oil
and chemical tanker "Yuandong" (the "Yuandong Vessel") from the vessel's charterers, Hongkong Yuandong Shipping Ltd
(the “Demise Charterers”) in order to perform two contracts on the purchase of Indonesian palm oil (the "Palm Oil
Contracts") from the seller, AAStar Trading Pte Ltd (“AAStar”). AAStar alleges that OGAPL breached the Palm Oil
Contracts because the Yuandong Vessel had left the port on 7 July 2022 without taking delivery of the cargo before the
end of the delivery period as stipulated. On 10 August 2022, AAStar served an arbitration claim through the Palm Oil
Refiners Association of Malaysia ("PORAM") on OGAPL seeking recovery of US$20.3 million plus interest and costs.
OGAPL 's defence and counter claim submissions in the PORAM arbitration proceedings was served on 8 December
2022. In 2023, both parties continued into the arbitration process and on 27 September 2023, the PORAM Tribunal
issued its Award ordering that OGAPL pays AAStar the sum of USD 18,588,750, plus interest on that sum at the rate of
6% per annum from 6 August 2022 to 27 September 2023. The PORAM Arbitration Rules provide that either party may
appeal the first tier Award to a PORAM Board of Appeal. OGAPL has issued Notice of Appeal on 17 October 2023. OGAPL
served its Appeal Submissions on 14 December 2023. AASTar's Appeal Submissions were served on 19 January 2024.
OGAPL's Appeal Reply Submissions were served on 12 February 2024 in the PORAM arbitral proceedings. AAStar has
served their Appeal Reply Submission on 18 March 2024.

In relation to the above PORAM arbitration, OGAPL has separately served claim submissions against the Demise
Charterers to the Singapore Chamber of Maritime Arbitration ("SCMA"), seeking a full indemnity in respect of the
AAStar claim. The parties have exchanged claim, defense and reply submissions in the SCMA arbitration. OGAPL
has separately served an application in the SCMA proceeding for orders directing the Demise Charterers to provide
security (i) for OGAPL 's claim; or (ii) in the alternative, OGAPL 's costs of the arbitration. In response, the Demise
Charterers have filed an application challenging the jurisdiction of the SCMA arbitration on the alleged basis that
the Demise Charterers were not a contracting party to the Charterparty. The arbitrators have reserved their
decision for consideration.
The facts and circumstances of these proceedings are assessed on a regular basis to determine if the criteria for
recognising a provision in accordance with SFRS(I) 1-37 are met. At 31 December 2023 and 31 December 2022, the
Group has concluded that the recognition criteria have not been met, as such no liability has been recognised in
relation to these matters in the consolidated statement of financial position at the end of the reporting periods as both
have been assessed by the Group to be remote.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

30. Employee benefits expenses

Employee benefits expenses (including executive directors):-
Group
2023 2022
$’000 $’000
Salaries and employee benefits 1,433,210 1,283,161
Central Provident Fund contributions and equivalents 55,518 51,750
Retrenchment benefits 2,263 2,479
Share-based expenses (relates to OSGP only) 23,066 50,186
1,514,057 1,387,576

In the prior financial year, share-based expense includes an amount of $20,412,000 relating to acceleration of all
outstanding share options and performance and restricted share awards (Note 38). There is no such expense in the
current financial year.
a. Olam Share Grant Plan (“ OSGP”)
On 30 October 2014, the Olam Share Grant Plan (‘OSGP’) was approved by shareholders of Olam International
Limited at an Extraordinary General Meeting. The OSGP is a share-based incentive plan which involves the award
of fully-paid shares, when and after pre-determined performance or service conditions are accomplished. The
actual number of shares to be delivered pursuant to the award granted will range from 0% to 192.5% and 200% of
the base award and is contingent on the achievement of pre-determined targets set out in the three-year
performance period and other terms and conditions being met.
The fair value of services received in return for shares awarded is measured by reference to the fair value of shares
granted under the OSGP. The estimate of the fair value of the services received is measured based on a Monte
Carlo simulation model, which involves projection of future outcomes using statistical distributions of key random
variables including share price and volatility of returns. The inputs to the model used for the shares granted are
shown below:-
Plan: RSA RSA RSA
Grant date: 3 March 2022 9 April 2021 3 April 2020
Dividend yield (%) 4.421 4.571 5.070
Expected volatility (%) 26.603 23.006 23.482
Risk-free interest rate (%) 0.985 – 1.564 0.601 0.625
Expected term (years) 1.08 – 4.08 2.98 2.99
Share price at date of grant ($) 1.78 1.750 1.360
Fair value at date of grant – RSA ($) 1.595 1.556 1.198

The number of contingent shares granted but not released for RSA awards as at 31 December 2023 was 34,434,687
(2022: RSA awards was 51,469,697).

In 2022, the NRC had determined that a trust be set up by a wholly-owned subsidiary, Olam Holdings Pte. Ltd. to be used
to satisfy the unvested RSA and that unvested Shares (defined to be “Olam Group Limited Shares”) under the RSA was
fully issued and/or transferred by Olam International Limited to the trustee prior to the Scheme Effective Date to hold
under the trust. The trustee will hold such Olam Group Limited Shares on trust so as to satisfy the outstanding RSA. The
said Olam Group Limited Shares will be released by the trustee to the respective RSA holders in accordance with the
original vesting schedule of the RSA, and subject to the same conditions for vesting as provided in the RSA and under the
OSGP, save for limited exceptions in which the continued employment requirement may not apply.
b. Jiva Employee Op tio n Plan (“JEOP”)
Jiva AG Pte. Ltd. (“Jiva”), an indirect subsidiary of the Company, has implemented the Jiva Employee Option Plan
(the “JEOP”) which was approved and adopted by the shareholders of Jiva on 19 April 2021.
The fair value of share options as at the date of grant, is estimated by the Company using the Black Scholes Model,
taking into account the terms and conditions upon which the options are granted. The expected life of the option is
based on the assumption that the options would be exercised within six months of the vesting date. The expected
volatility reflects the assumption that the historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.

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30. Employee benefits expenses continued

c. Ter rascope Employee Option Plan (“ TEOP”)
Terrascope Pte. Ltd. (“Terrascope”), an indirect subsidiary of the Company, has implemented the Terrascope
Employee Option Plan (the “TEOP”) which was approved and adopted by the shareholders of Jiva on 22 August 2022.
The fair value of share options as at the date of grant, is estimated by the Company using the Black Scholes Model,
taking into account the terms and conditions upon which the options are granted. The expected life of the option is
based on the assumption that the options would be exercised within six months of the vesting date. The expected
volatility reflects the assumption that the historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.
d. Mindsprint Employee Option Plan (“ MEOP”)
Mindsprint Pte. Ltd. (“Mindsprint”), an indirect subsidiary of the Company, has implemented the Mindsprint
Employee Option Plan (the “MEOP”) which was approved and adopted by the shareholders of Mindsprint on 20
December 2023.
The fair value of share options as at the date of grant, is estimated by the Company using the Black Scholes Model,
taking into account the terms and conditions upon which the options are granted. The expected life of the option is
based on the assumption that the options would be exercised within six months of the vesting date. The expected
volatility reflects the assumption that the historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.

31. Related party disclosures

An entity or individual is considered a related party of the Group for the purposes of the financial statements if:
i) it possesses the ability (directly or indirectly) to control or exercise significant influence over the operating and
financial decisions of the Group or vice versa; ii) it is subject to common control or common significant influence.
The following are the significant related party transactions entered into by the Group and Company in the ordinary
course of business on terms agreed between the parties:-
Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Subsidiary companies:
• Interest received on loans, net – – 55,954 27,264
• Dividend income received – – 324,082 339,284

Joint ventures:
• Sales of goods 8,249 24,873 – –
• Purchases 5,195 5,801 – –
• Management fee received 91 132 – –
• Finance income – 499 – –

Associates:
• Sales of goods 204,902 183,280 – –
• Purchases 852 95 – –
• Dividend income 5,521 18,011 – –
• Commission paid 726 652 – –
• Income from service – 12,389 – –
• Others received – 2,457 – –

Shareholder related companies of the Company:

• Sale of goods 147,857 297,509 – –
• Purchases 1,257 57,309 – –
• Commission paid 27 92 – –

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Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

32. Compensation of directors and key management personnel

The remuneration of directors and key management personnel during the years is as follows:-
Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Directors’ fees 3,630 5,340 3,555 4,799
Salaries and employee benefits 13,802 12,620 13,802 12,611
Central Provident Fund contributions and equivalents 74 58 74 58
Share-based expense 2,224 2,068 2,224 2,068
19,730 20,086 19,655 19,536
Comprising amounts paid to:-
Directors of the Company 12,167 14,425 12,092 13,875
Key management personnel 7,563 5,661 7,563 5,661
19,730 20,086 19,655 19,536

Dir ec tors’ in terests in Ola m Share Gra nt Plan

At the end of the reporting date, there were no outstanding options/shares that were issued/allocated to the directors
and key management personnel.

33. Cash and short-term deposits

Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Cash and bank balances 3,257,332 4,349,872 13,998 16,754
Deposits 324,294 455,684 – –
3,581,626 4,805,556 13,998 16,754

Cash at banks earn interest at floating rates based on daily bank deposit rates ranging from 0.01% to 46.50% (2022:
0.01% to 22.50%) per annum.
Deposits include short-term and capital guaranteed deposits. Short-term deposits are made for varying periods between 1
and 90 days (2022: 1 and 90 days) depending on the immediate cash requirements of the Group, and interest earned at
floating rates ranging from 1.00% to 16.75% (2022: 1.00% to 15.50%) per annum and may be withdrawn on demand.
Cash and bank balances and deposits denominated in currencies other than functional currencies of Group companies
are as follows:-
Group Company
2023 2022 2023 2022
$’000 $’000 $’000 $’000
Euro 465,139 505,875 – –
Great Britain Pounds 131,322 282,980 – –
United States Dollar 79,104 100,862 783 –
Singapore Dollar 30,024 29,463 13,215 977
Australian Dollar 5,236 9,814 – –
Japanese Yen 3,789 3,310 – –

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33. Cash and short-term deposits continued

Ca s h a n d c a s h eq u i v a l en ts
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the following:-
Group
2023 2022
$’000 $’000
Cash and bank balances 3,257,332 4,349,872
Deposits 324,294 439,396
Bank overdrafts (Note 24) (355,672) (190,434)
3,225,954 4,598,834

Bank overdrafts are included in the determination of cash and cash equivalents because they form an integral part of
the Group’s cash management.
34. Financial risk management policies and objectives
The Group and the Company are exposed to financial risks from its operations and the use of financial instruments. The
Board of Directors and Board Risk Committee reviews and agrees on policies and procedures for the management of
these risks, which are executed by the Chief Financial Officer and Head of Risk. The Board Risk Committee provides
independent oversight to the effectiveness of the risk management process.
The Group’s principal financial instruments, other than derivative financial instruments and investment in security, comprise
bank loans, medium-term notes, term loans from banks, bonds, cash and bank balances, fixed deposits and bank overdrafts.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has various other financial
assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.
The Group also enters into derivative transactions, including interest rate swaps, commodity options, swaps and futures
contracts and foreign currency forward contracts. The purpose is to manage the commodity price risk, foreign currency
risk and interest rate risk arising from the Group’s operations and its sources of financing.
There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and
measures the risks.
The main risks arising from the Group’s financial instruments are commodity price risk, credit risk, foreign currency risk,
liquidity risk and interest rate risk. The Board of Directors reviews and agrees on the policies for managing each of these
risks and they are summarised below:-
a . Com m o d ity p r ic e r is k
Commodities traded by the Group are subject to fluctuations due to a number of factors that result in price risk. The
Group purchases and sells various derivative products, primarily exchange traded futures and options with the
purpose of managing market exposure to adverse price movements in these commodities. The Group has established
policies and exposure limits that restrict the amount of unhedged fixed price physical positions in each commodity.
The Group also enters into commodity derivatives for trading purposes. The Group’s trading market risk appetite is
determined by the Board of Directors, with detailed exposure limits recommended by the Executive Risk Committee
and approved by the Board Risk Committee.
At balance sheet date, if the commodities price index increased by 1.0% with all other variables held constant, the Group’s
profit net of tax would have increased by $ 37,776,000 (2022: decreased by $16,881,000 given its net short commodity
positions) given its net long commodity positions, arising as a result of fair value on Group’s commodity futures, options
contracts, physical sales and purchases commitments as well as the inventory held at balance sheet date.

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

34. Financial risk management policies and objectives continued

b . Cr ed it r is k
Credit risk is limited to the risk arising from the inability of a customer to make payment when due. It is the Group’s
policy to provide credit terms only to creditworthy customers. These debts are continually monitored and therefore,
the Group does not expect to incur material credit losses.
For computation of impairment losses on financial assets, the Group uses a provision matrix as presented below:-
Balance Sheet Expected credit loss
Loan to associate (Note 15) Expected credit losses is calculated by considering the
Amounts due from subsidiary companies (net) (Note 16) historical default experience and the financial position of the
Trade receivables (Note 17) counterparties and various external sources of actual and
Other current assets – Sundry receivables, export incentives forecast economic information, as appropriate, in estimating
and subsidies receivable, deposits, staff advances, insurance the probability of default of each of these financial assets
receivables, amount due from joint venture, associates and a occurring within their respective loss assessment time horizon,
shareholder related company (Note 21) as well as the loss upon default in each case.

The carrying amounts of trade receivables, other non-current and current assets, margin accounts with brokers,
cash and short-term deposits payments, including derivatives with positive fair value represent the Group’s
maximum exposure to credit risk. No other financial assets carry a significant exposure to credit risk. Cash and
bank balances and deposits are placed with reputable banks.
Credit risk concentration profile
The Group determines concentrations of credit risk by monitoring the operating segment profile of its trade
receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the end of
the reporting period is as follows:-
Group
2023 2022
$’000 $’000
By operating segments:
Olam Food Ingredients (‘ofi’) 893,530 857,011
Olam Global Agri (‘Olam Agri’) 2,061,780 1,637,566
Remaining Olam Group 85,722 87,132
3,041,032 2,581,709

The Group has no significant concentration of credit risk with any single customer.

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34. Financial risk management policies and objectives continued

c. Foreign curr ency r isk
The Group trades its products globally and, as a result, is exposed to movements in foreign currency exchange
rates. The primary purpose of the Group’s foreign currency hedging activities is to protect against the volatility
associated with foreign currency purchases and sales of raw materials and other assets and liabilities created in
the normal course of business. The Group primarily utilises foreign currency forward exchange contracts and cross
currency interest rate swap to hedge firm commitments.
The Group has transactional currency exposures arising from sales or purchases that are denominated in a
currency other than the respective functional currencies of Group entities. The foreign currencies in which these
transactions are denominated are mainly Singapore Dollar (SGD), Great Britain Pounds (GBP), United States Dollar
(USD), Australian Dollar (AUD), Euro (EUR) and Japanese Yen (YEN).
The following table demonstrates the sensitivity of the Group’s profit net of tax and equity to a reasonably possible
change in the SGD, GBP, USD, AUD, EUR and YEN exchange rates, with all other variables held constant.
Group
2023 2022
Profit net of tax Equity Profit net of tax Equity
$’000 $’000 $’000 $’000
Increase/ Increase/ Increase/ Increase/
(decrease) (decrease) (decrease) (decrease)
SGD – strengthened 0.5% 512 2,509 507 2,509
GBP – strengthened 0.5% (14,493) (9) (4,202) (39)
USD – strengthened 0.5% 807 – 721 –
AUD – strengthened 0.5% 4,345 (10) 5,964 (2)
EUR – strengthened 0.5% (273) (501) (8,081) (922)
YEN – strengthened 0.5% (2,805) – (2,258) –

d. Liquid ity risk

Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations
associated with its financial liabilities or due to shortage of funds.
To ensure continuity of funding, the Group primarily uses short-term bank facilities that are transaction-linked and
self-liquidating in nature. The Group also has a multicurrency medium-term notes programme, as well as term
loans from banks, to fund its ongoing working capital requirement and growth needs.
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities at the
balance sheet date based on contractual undiscounted repayment obligations.
2023 2022
$’000 $’000
One year One to five Over five One year One to five Over five
or less years years Total or less years years Total
Group
Financial liabilities:
Trade payables and accruals (Note 22) 4,739,679 – – 4,739,679 4,128,664 – – 4,128,664
Other current liabilities (Note 23) 349,934 – – 349,934 418,893 – – 418,893
Other non-current liabilities (Note 23) – 66,124 – 66,124 – 67,114 – 67,114
Borrowings 6,735,728 9,129,213 299,858 16,164,799 5,193,376 10,687,482 53,312 15,934,170
Lease liabilities 172,376 553,679 793,893 1,519,948 177,570 544,998 814,236 1,536,804
Derivative financial instruments (Note 34(f)) 3,041,608 – – 3,041,608 2,033,754 – – 2,033,754
Total undiscounted financial liabilities 15,039,325 9,749,016 1,093,751 25,882,092 11,952,257 11,299,594 867,548 24,119,399
Company
Financial liabilities:
Trade payables and accruals (Note 22) 3,033 – – 3,033 2,957 – – 2,957
Total undiscounted financial liabilities 3,033 – – 3,033 2,957 – – 2,957

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Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

34. Financial risk management policies and objectives continued

d. Liquidity risk continued
The table below shows the contractual expiry by maturity of the Company’s contingent liabilities and commitments.
The maximum amount of the financial guarantee contracts drawn/undrawn are allocated to the earliest period in
which the guarantee could be called.
2023 2022
$’000 $’000
One year One to five Over five One year One to five Over five
or less years years Total or less years years Total

Company
Financial guarantees 11,558,609 – – 11,558,609 5,653,352 – – 5,653,352

e. Interest rate r isk

The Company’s and the Group’s exposure to market risk for changes in interest rates relate primarily to its floating
rate borrowings. Interest rate risk is managed on an ongoing basis such as hedging the risk through interest rate
derivatives with the primary objective of limiting the extent to which net interest exposure could be affected by
adverse movements in interest rates. The details of the interest rates relating to the interest-earning financial assets
and interest-bearing financial liabilities are disclosed in various notes to the financial statements.
At the balance sheet date, if interest rates had moved by 25 basis points with all other variables held constant,
the Group’s profit net of tax would have changed inversely by $34,640,000 (2022: $31,153,000).
f. Deriva ti ve financia l instruments and h e dge accounti ng
Derivative financial instruments are used to manage the Group’s exposure to risks associated with foreign currency
and commodity price. Certain derivatives are also used for trading purposes. The Group and Company have
master netting arrangements with certain dealers and brokers to settle the net amount due to or from each other.
Derivatives held for trading
As at 31 December 2023, the settlement dates on open commodity derivatives and foreign exchange derivatives
ranged between 1 and 117 months (2022: 1 and 38 months). As at 31 December 2023, the settlement dates for cross
currency interest rate swap are expected to occur within 55 months (2022: 1 and 59 months).
The Group’s derivative financial instruments that are offset are as follows:-
2023 2022
Fair value Fair value
Assets Liabilities Assets Liabilities
Group $’000 $’000 $’000 $’000

Derivatives held for trading:

Commodity contracts 9,572,266 (8,447,579) 5,561,361 (4,391,860)
Foreign exchange contracts 798,940 (728,411) 849,098 (777,729)
Cross currency interest rate swap 47,494 (100,476) 48,813 (127,434)
Total derivatives held for trading 10,418,700 (9,276,466) 6,459,272 (5,297,023)

Derivatives held for hedging:

Commodity contracts 361 (226,829) – (19,763)
Fair value hedge 361 (226,829) – (19,763)
Foreign exchange contracts – Cash flow hedge 3,863 (8,450) 14,354 (12,811)
Interest rate swaps – Cash flow hedge 4 (127) 1,333 (117)
Cash flow hedge 3,867 (8,577) 15,687 (12,928)
Total derivatives held for hedging 4,228 (235,406) 15,687 (32,691)
Total derivatives, gross 10,422,928 (9,511,872) 6,474,959 (5,329,714)
Gross amounts offset in the balance sheet (6,470,264) 6,470,264 (3,295,960) 3,295,960
Net amounts in the balance sheet 3,952,664 (3,041,608) 3,178,999 (2,033,754)

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34. Financial risk management policies and objectives continued

f. Derivative financial instruments and hedge accounting continued
The Group applies hedge accounting in accordance with SFRS(I) 9 for certain hedging relationships which qualify
for hedge accounting. The effects of applying hedge accounting for expected future sales and purchases on the
Group’s balance sheet and profit or loss are as follows:-
Group Group
2023 2022
Line item in the Balance Sheets where Assets Liabilities Assets Liabilities
the hedging instrument is reported: $’000 $’000 $’000 $’000
Fair value hedge – Commodity contracts
Hedged item:
Inventories Inventories 2,431,879 – 1,894,666 –
Sales and purchase contracts Derivative assets 243,953 – 128,369 –
Hedging instruments:
Commodity contracts Derivative assets/(liabilities) 361 (226,829) – (19,763)

Cash flow hedge – Foreign exchange contracts

Hedged item:
Forecasted transactions denominated Fair value adjustment
in foreign currency reserves 755,687 – 773,349 –
Hedging instruments:
Foreign exchange contracts Derivative assets/(liabilities) 3,863 (8,450) 14,354 (12,811)

Cash flow hedge – Interest rate swap

Hedged item:
Forecasted transactions denominated Fair value adjustment
in foreign currency reserves – (122) 1,216 –
Hedging instruments:
Interest rate swaps Derivative assets/(liabilities) 4 (127) 1,333 (117)

Fair value hedge – Commodity contracts

The Group is exposed to price risk on the purchase side due to increase in commodity prices, on the sales sides and
inventory held to decrease in commodity prices. Therefore, the Group applies fair value hedge accounting to hedge
its commodity prices embedded in its inventories, sales and purchase contracts and uses commodity derivatives to
manage its exposure. The Group determines its hedge effectiveness based on the volume of both hedged item and
hedging instruments.
For the relevant commodity derivatives used for above hedge accounting purposes, the forecasted transactions are
expected to occur within 1 to 31 months (2022: 1 to 29 months). These commodity derivatives held for hedge
accounting are used to hedge the commodity price risk related to inventories, sales and purchases contracts. The
accumulated amount of fair value hedge adjustments included in the carrying amount of the inventories for the
current financial year amounts to $843,209,000 (2022: $409,997,000).
Cash flow hedge – Foreign exchange contracts
For the relevant foreign exchange derivatives used for above hedging accounting purposes, the forecasted
transactions are expected to occur within 31 months (2022: 24 months). The fair value of these derivatives recorded
in the ‘Other Comprehensive Income’ are reclassified through the profit and loss account upon occurrence of the
forecasted transactions and this amounts to $9,154,000 (2022: $29,967,000) for the current financial year. The net
hedging loss recognised in the ‘Other Comprehensive Income’ in relation to such transactions amounts to
$4,587,000 (2022: gain of $1,543,000) in the current financial year.
Cash flow hedge – Interest rate swaps
The Group entered into interest rate swap contracts to hedge against fluctuation in the international rates
(EURIBOR or SOFR or LIBOR) on the floating rate exposure of its Structured Letter of Credit (“SLC”) and bank loans.
All interest rate derivative financial instruments are in a cash flow hedge relationship resulting in changes in fair
value are recognised in other comprehensive income. As at 31 December 2023, these hedges are effective until 2024
(2022: 2025) with 3-months SOFR (2022: 3-months EURIBOR or SOFR or LIBOR) rate ranging from 5.35% to 5.40%
(2022: 0.64% to 4.49%) per year.

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Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

35. Fair values of assets and liabilities

a. Fair value hierarchy
The Group classifies fair value measurements using a fair value hierarchy that is dependent on the valuation inputs
used as follows:

• Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the
measurement date,
• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly, and
• Level 3 – Unobservable inputs for the asset or liability.
b. Fair value of assets and lia b il it ies th at a re carried at f a ir value
The following table shows an analysis of assets and liabilities carried at fair value by level of fair value hierarchy:-
Group Group
2023 2022
Quoted prices Quoted prices
in active markets Significant other Significant in active markets Significant other Significant
for identical observable unobservable for identical observable unobservable
instruments inputs inputs instruments inputs inputs
(Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Recurring fair value measurements
Financial assets:
Derivative financial instruments:-
Commodity contracts 666,128 2,365,329 70,906 3,102,363 370,594 1,804,733 90,074 2,265,401
Foreign exchange contracts – 798,940 – 798,940 – 849,098 – 849,098
Foreign exchange contracts –
cash flow hedge – 3,863 – 3,863 – 14,354 – 14,354
Cross currency interest-rate swaps – 47,494 – 47,494 – 48,813 – 48,813
Interest rate swaps – cash flow hedge – 4 – 4 – 1,333 – 1,333
666,128 3,215,630 70,906 3,952,664 370,594 2,718,331 90,074 3,178,999
Financial liabilities:
Derivative financial instruments:-
Commodity contracts 1,289,513 887,367 27,264 2,204,144 320,265 776,001 19,397 1,115,663
Foreign exchange contracts – 728,411 – 728,411 – 777,729 – 777,729
Foreign exchange contracts –
cash flow hedge – 8,450 – 8,450 – 12,811 – 12,811
Cross currency interest-rate swaps – 100,476 – 100,476 – 127,434 – 127,434
Interest rate swaps – cash flow hedge – 127 – 127 – 117 – 117
1,289,513 1,724,831 27,264 3,041,608 320,265 1,694,092 19,397 2,033,754
Non-financial assets:
Biological assets (Note 13) – – 557,025 557,025 – – 559,091 559,091
Inventories (Note 19) – 5,181,996 575,808 5,757,804 – 4,182,727 386,787 4,569,514

Determination of fair value

Foreign exchange contracts and interest rate swaps are valued using a valuation technique with market observable
inputs. The most frequently applied valuation techniques include forward pricing and swap models, using present
value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign
exchange spot and forward rates, interest rate curves and forward rate curves.
Commodity contracts, inventories, interest rate swaps and cross currency interest rate swaps are valued based
on the following:-

• Level 1 – Based on quoted closing prices at the balance sheet date;

• Level 2 – Valued using valuation techniques with market observable inputs. The models incorporate various inputs
including the broker quotes for similar transactions, credit quality of counter-parties, foreign exchange spot and forward
rates, interest rate curves and forward rate curves of the underlying commodities; and
• Level 3 – Valued using inputs that are not based on observable inputs such as historical transacted prices and estimates.
The fair value of biological assets has been determined through various methods and assumptions. Please refer to
Note 13 for more details.

Transfer out of Level 3

In the financial year ended 31 December 2023, certain commodity contracts which were valued based on Level 3 in
the previous financial year, are valued based on Level 2 in the current financial year basis availability of third-party
quotes, unlike in the previous financial year. In the financial year ended 31 December 2022, there were no transfers
between different levels of the fair value hierarchy.

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35. Fair values of assets and liabilities continued

c. L ev el 3 f a ir v a l u e m ea s u r e m en ts
i. Information about significant unobservable inputs used in Level 3 fair value measurements
The significant unobservable inputs used in the valuation of biological assets are disclosed in Note 13.
The following table shows the information about fair value measurements of other assets and liabilities using
significant unobservable inputs (Level 3):-
Recurring fair value measurements Valuation techniques Unobservable inputs Percentage
Financial assets/liabilities:
Commodity contracts Comparable market approach Premium on quality 0% to 36%
per metric tonne (2022: 0% to 28%)
Commodity contracts Comparable market approach Discount on quality 0% to 36%
per metric tonne (2022: 0% to 29%)
Non-financial assets:
Inventories Comparable market approach Premium on quality 0% to 36%
per metric tonne (2022: 0% to 27%)
Inventories Comparable market approach Discount on quality 0% to 36%
per metric tonne (2022: 0% to 27%)

Impact of changes to key assumptions on fair value of Level 3 financial instruments

The following table shows the impact on the Level 3 fair value measurement of assets and liabilities that
are sensitive to changes in unobservable inputs that reflect reasonably possible alternative assumptions.
The positive and negative effects are approximately the same.
2023 2022
Effect of
reasonably Effect of
possible reasonably possible
alternative alternative
assumptions assumptions
Carrying Carrying
amount Profit/(loss) amount Profit/(loss)
$’000 $’000 $’000 $’000
Recurring fair value measurements
Commodity contracts 70,906 2,434 90,074 852
Financial liabilities:
Commodity contracts (27,264) (3,257) (19,397) (2,502)
Non-financial assets:
Biological assets – discount rate increased by 0.5% (1,570) (1,557)
Biological assets – discount rate decreased by 0.5% 1,585 1,572
Biological assets – pricing increased by 1.0% 2,437 2,656
557,025 559,091
Biological assets – pricing decreased by 1.0% (2,437) (2,656)
Biological assets – yields increased by 1.0% 3,863 3,819
Biological assets – yields decreased by 1.0% (3,863) (3,819)
Inventories 575,808 5,688 386,787 3,971

In order to determine the effect of the above reasonably possible alternative assumptions, the Group adjusted
the following key unobservable inputs used in the fair value measurement:-

• For certain commodity contracts and inventories, the Group adjusted the market prices of the valuation model by 1%.
• For biological assets, the Group adjusted the key assumptions applied to fair values of the valuation model as
follows: (i) discount rate by 0.5% and (ii) pricing and yields by 1.0% each.

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 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

35. Fair values of assets and liabilities continued

c. Level 3 fair value measurements continued
ii. Movements in Level 3 assets and liabilities measured at fair value
The following table presents the reconciliation for all assets and liabilities measured at fair value, except for
biological assets (Note 13), based on significant unobservable inputs (Level 3):-
Commodity Commodity
contracts – contracts – Biological
assets liabilities Inventories assets
$’000 $’000 $’000 $’000
At 1 January 2022 72,797 (30,803) 443,172 489,013
Total gain/(loss) for the year
• Included in profit or loss 17,277 11,406 (5,941) 90,903
Growth/Birth (net of harvest/sale) – – – (20,825)
Purchases and sales, net – – (50,444) –
At 31 December 2022 and 1 January 2023 90,074 (19,397) 386,787 559,091
Total gain/(loss) for the year
• Included in profit or loss (19,168) (7,867) 143,422 66,304
Growth/Birth (net of harvest/sale) – – – (68,370)
Purchases and sales, net – – 45,599 –
At 31 December 2023 70,906 (27,264) 575,808 557,025

d . Fa ir va l ue of f ina n cia l i nst r um en ts by cl asses that ar e no t car ried at fair value and whose carrying
amounts are reasonable a pproxim ation of fair value
i. Cash and short-term deposits, trade receivables, other current assets, margin accounts with brokers,
amounts due from subsidiary companies (net), trade payables and accruals, other current liabilities
and bank overdrafts
The fair values of these financial instruments approximate their carrying amounts at the balance sheet date
because of their short-term maturity.
ii. Loan to associate, bank loans and term loans from banks
The carrying amount of loan to associates, bank loans and term loans from banks are an approximation of fair
values as they are subjected to frequent repricing (floating rates) and/or because of their short-term maturity.
e. Fa ir va l ue of f ina n cia l i nst r um en ts by cl asses that ar e no t car ried a t f a ir v a l u e a n d w h o s e c a r r y ing
amounts are not reasonable approxim ation of fair value
i. Loans to subsidiary companies
Loans to subsidiary companies are repayable only when the cash flow of the entities permits. Accordingly, the
fair value of these amounts is not determinable as the timing of the future cash flow arising from these
balances cannot be estimated reliably.
ii. Medium-term notes and other bonds
The fair value of financial assets and liabilities by classes that are not carried at fair value and whose carrying
amounts are not reasonable approximation of fair value are as follows:-
Group
Carrying Fair
amount value
$’000 $’000
31 December 2023
Financial liabilities:
Medium-term notes 1,747,089 1,545,664
31 December 2022
Financial liabilities:
Medium-term notes 2,082,201 2,066,951

The fair value of medium-term notes and all bonds is determined directly by reference to their published market
bid price (Level 1) or valued using valuation techniques with market observable inputs (Level 2), where relevant
at the end of the respective financial years.

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36. Capital management

The Group manages the capital structure by a balanced mix of debt and equity. Necessary adjustments are made
in the capital structure considering the factors vis-a-vis the changes in the general economic conditions, available
options of financing and the impact of the same on the liquidity position. Higher leverage is used for funding more liquid
working capital needs and conservative leverage is used for long-term capital investments. No changes were made in
the objectives, policies or processes during the financial years ended 31 December 2022 and 31 December 2023.
The Group calculates the level of debt capital required to finance the working capital requirements using
leverage/gearing ratio and the Group’s policy is to maintain the net leverage ratio within 2 times.
As at balance sheet date, leverage ratios are as follows:-
Group
2023 2022
Gross debt to equity:
• Before fair value adjustment reserve 2.21 times 2.10 times
Net debt to equity:
• Before fair value adjustment reserve 1.73 times 1.47 times

The Group assesses the level of debt capital used to finance capital investment in respect of the projected risk and
returns of these investments using a number of traditional and modified investment and analytical models including
discounted cash flows. It also assesses the use of debt capital to fund such investments relative to the impact on the
Group’s overall debt capital position and capital structure.
In order to manage its capital structure, the Group may issue debt of either a fixed or floating nature, arrange credit
facilities, issue medium-term notes, issue new shares or convertible bonds and adjust dividend payments.

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Olam Group Limited Annual Report 2023 265
 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

37. Classification of financial assets and financial liabilities

Group Group
2023 2022
Fair value Fair value
through Other Fair value through Other Fair value
Amortised Comprehensive through Comprehensive through
cost Income Profit or Loss Amortised cost Income Profit or Loss
$’000 $’000 $’000 $’000 $’000 $’000
Financial assets:
Loan to associate (Note 15(b)) 3,876 – – 3,933 – –
Trade receivables (Note 17) 3,041,032 – – 2,581,709 – –
Margin accounts with brokers (Note 18) – – – 62,775 – –
Other current assets (Note 21) 651,661 – – 437,699 – –
Other non-current assets (Note 21) 66,039 – – 42,240 – –
Cash and short-term deposits (Note 33) 3,581,626 – – 4,805,556 – –
Derivative financial instruments (Note 34(f)) – 3,867 3,948,797 – 15,687 3,163,312
7,344,234 3,867 3,948,797 7,933,912 15,687 3,163,312
Financial liabilities:
Trade payables and accruals (Note 22) 4,739,679 – – 4,128,664 – –
Margin account with brokers (Note 18) 189,549 – – – – –
Other current liabilities (Note 23) 405,084 – – 475,577 – –
Other non-current liabilities (Note 23) 66,124 – – 67,114 – –
Borrowings (Note 24) 15,312,707 – – 15,118,722 – –
Lease liabilities (Note 24) 981,164 – – 1,027,022 – –
Derivative financial instruments (Note 34(f)) – 8,577 3,033,031 – 12,928 2,020,826
21,694,307 8,577 3,033,031 20,817,099 12,928 2,020,826

Company Company
2023 2022
Fair value Fair value
through Other Fair value through Other Fair value
Amortised Comprehensive through Comprehensive through
cost Income Profit or Loss Amortised cost Income Profit or Loss
$’000 $’000 $’000 $’000 $’000 $’000
Financial assets:
Amount due from subsidiary companies (Note 16) 643,410 – – 630,906 – –
Cash and short-term deposits (Note 33) 13,998 – – 16,754 – –
657,408 – – 647,660 – –
Financial liabilities:
Trade payables and accruals (Note 22) 3,033 – – 2,957 – –
3,033 – – 2,957 – –

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38. Segmental information

The Group’s supply chain activities of sourcing, processing and merchandising span across a broad range of
agricultural products.

The new segmentation has been done in the following manner: -

• Olam Food Ingredients (“ofi”) – Cocoa, Coffee, Nuts, Spices and Dairy
• Olam Global Agri (“Olam Agri”) – Grains, Animal Feed & Protein, Edible Oil, Rice, Cotton, Rubber, Wood Products and
Commodity Financial Services
• Remaining Olam Group – De-prioritised businesses (Rubber Plantations, Fertiliser, Infrastructure and Logistics, and
other de-prioritised assets), Continuing/Gestating businesses (Palm Plantations, Russian dairy and Packaged foods)
and Incubating businesses (Engine 2 growth platforms)

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items mainly comprise corporate cash, fixed deposits, other receivables
and corporate liabilities such as taxation and borrowings. Assets which are unallocated are common and shared by
segments and thus it is not practical to allocate them.

Management monitors the operating results of its business units separately for the purpose of making decisions about
resource allocation and performance assessment. The measure used by management to evaluate segment performance is
different from the operating profit or loss in the consolidated financial statements, as explained in the table in Note 38(a).

Group financing (including finance cost), which is managed on group basis, and income tax which is evaluated on
group basis are not allocated to operating segments.

The turnover by geographical segments is based on the location of customers regardless of where the goods are
produced. The assets and capital expenditure are attributed to the location of those assets.
a. Business s eg m en ts
Olam Food Ingredients Olam Global Agri Remaining Olam Group Consolidated
2023 2022 2023 2022 2023 2022 2023 2022
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Segment revenue:
Sales to external customers 15,583,465 16,391,652 31,319,640 36,904,045 1,368,886 1,605,280 48,271,991 54,900,977
Segment result (EBIT) 829,270 746,464 967,736 857,746 (25,147) 4,485 1,771,859 1,608,695
Finance costs – – – – – – (1,291,061) (849,613)
Finance income – – – – – – 157,972 103,943
Exceptional items 1 (188,185) (21,361) – (6,667) (39,710) (107,812) (227,895) (135,840)
Profit before taxation 410,875 727,185
Taxation expense (59,878) (175,585)
Profit for the financial year 350,997 551,600
Segment assets 17,023,446 14,683,461 8,087,548 8,018,867 3,104,727 3,230,594 28,215,721 25,932,922
Unallocated assets 2 5,132,920 6,020,879
33,348,641 31,953,801
Segment liabilities 5,269,177 3,137,669 2,630,012 2,895,325 321,659 327,949 8,220,848 6,360,943
Unallocated liabilities 3 17,459,278 17,510,147
25,680,126 23,871,090
Other segmental information:
Depreciation and amortisation 389,303 365,728 194,869 210,427 136,836 132,877 721,008 709,032
Share of results from joint ventures and
associates 714 3,353 1,266 14,520 (12) 9,482 1,968 27,355
Investments in joint ventures and associates 14,946 15,016 17,667 17,814 244,770 240,841 277,383 273,671
Capital expenditure 411,189 513,872 141,241 152,873 109,418 117,029 661,848 783,774

b. Geographical segments
Asia, Middle East and
Australia Africa Europe Americas Eliminations Consolidated
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Segment revenue:
Sales to external
customers 23,720,288 27,087,682 7,467,927 8,776,467 9,104,191 9,958,790 7,979,585 9,078,038 – – 48,271,991 54,900,977
Intersegment sales 247,842 359,403 146,883 257,103 – 10,127 1,372 4,645 (396,097) (631,278) – –
23,968,130 27,447,085 7,614,810 9,033,570 9,104,191 9,968,917 7,980,957 9,082,683 (396,097) (631,278) 48,271,991 54,900,977
Non-current assets 4 2,958,823 2,942,936 3,577,452 3,637,070 946,571 972,662 3,150,881 3,058,254 – – 10,633,727 10,610,922

Olam Group Limited Annual Report 2023 267

Olam Group Limited Annual Report 2023 267

Olam Group Limited Annual Report 2023 267
 report
Financial report
Notes
Notes to the
to the
Financial FinancialStatements
Financial
report Statementscontinued
For
For the financial
thetofinancial year ended
year ended 31December
31 December2023
2023
Notes the Financial Statements continued
For the financial year ended 31 December 2023

38. Segmental information continued

c. Information on major customers
The Group has no single customer accounting for more than 10% of the turnover.

1. Exceptional items included the following items of expenses:-

Group
2023 2022
$’000 $’000
Fair value loss on biological assets – Australia Almonds (Note 13) (166,424) –
Group re-organisation costs (Note 7) (61,471) (112,060)
Transaction costs incurred in business combinations (Note 7) – (3,151)
Business restructuring and closure costs (Note 7) – (217)
Acceleration of share-based expenses (Note 30) – (20,412)
(227,895) (135,840)

2. In the current financial year, finance costs of $1,291,061,000 includes an exceptional item amounting to $3,013,000
in relation to the bridge financing bank loan that the Group has put in place relation to the group re-organisation.
The following unallocated assets items are added to segment assets to arrive at total assets reported in the
consolidated balance sheet:-
Group
2023 2022
$’000 $’000
Cash and bank balances 3,257,332 4,349,872
Fixed deposits 324,294 455,684
Other current/non-current assets 1,228,321 933,286
Non-current assets held for sale 1,145 19,024
Deferred tax assets 321,828 263,013
5,132,920 6,020,879

3. The following unallocated liabilities items are deducted from segment liabilities to arrive at total liabilities reported in
the consolidated balance sheet:-
Group
2023 2022
$’000 $’000
Borrowings 15,312,707 15,118,722
Lease liabilities 981,164 1,027,022
Deferred tax liabilities 416,512 527,903
Other current/non-current liabilities 487,105 559,291
Provision for taxation 261,790 277,209
17,459,278 17,510,147

4. Non-current assets mainly relate to property, plant and equipment, intangible assets, biological assets, investments
in joint ventures and associates and long-term investments.

39. Events occurring after the reporting period

On 29 February 2024, a subsidiary of the Company, Olam Agri Senegal S.A. completed the acquisition of Avisen SARL
for EUR 17.0 million (approximately $24.7 million) for 100.0% ownership of the company. This acquisition aligns with
Olam Agri’s strategy to strengthen and expand its animal feed and protein capabilities and to invest in proven
businesses having strong market positions. It extends the company’s feed and protein presence in West Africa, where it
is one of the leading animal feed and day-old chick producers in Nigeria, while generating synergies with its wheat
milling business in Senegal.

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Corporate information report

Corporate information
as at 18 March 2024

Board
of Directors

ARC, NC, SC

GCEO and CEO

OGA&OIand ofi

Executive Corporate
Committee Leadership Team
Olam Agri ofi

Employees

‘ofi’ denotes Olam Food Ingredients

Directors Registered office Principal bankers

Lim Ah Doo (Chair) 7 Straits View #20-01, Abu Dhabi Commercial Bank P.J.S.C.
Sunny George Verghese (GCEO) Marina One East Tower Australia and New Zealand
Singapore 018936 Banking Group Limited
Nihal Vijaya Devadas Kaviratne CBE
Telephone: (65) 6339 4100
Marie Elaine Teo Banco Bilbao Vizcaya Argentaria S.A.
Fax: (65) 6339 9755
Yap Chee Keong Banco Santander, S.A.
Nagi Hamiyeh
Auditor BNP Paribas
Ernst & Young LLP Citibank N.A.
Ajai Puri (Dr) One Raffles Quay
Joerg Wolfgang Wolle (Dr) North Tower, Level 18 Commonwealth Bank of Australia
Shuji Kobayashi Singapore 048583 DBS Bank Ltd
Yuji Tsushima Partner in charge: Emirates NBD Bank P.J.S.C.
Christopher Wong Mun Yick First Abu Dhabi Bank P.J.S.C.
Company Secretary (since financial year 31 December 2019)
ING Bank N.V.
Michelle Tanya Kwek
JPMorgan Chase Bank N.A.
Mizuho Bank, Ltd
MUFG Bank, Ltd
National Australia Bank Limited
Natixis
Rabobank International
Scotiabank
Standard Chartered Bank
Sumitomo Mitsui Banking Corporation
The Hongkong and Shanghai Banking
Corporation Limited
Unicredit Bank AG
Westpac Banking Corporation

Olam Group Limited Annual Report 2023 269

Shareholding information

Shareholding information

Substantial Shareholders
(As recorded in the Register of Substantial Shareholders as at 18 March 2024)

Direct Number Deemed Number %

No. Name of Shareholder of Shares1 of Shares1 Held

1. Breedens Investments Pte. Ltd.(2) 1,603,412,218 – 42.03

2. Aranda Investments Pte. Ltd.(2) 359,736,514 – 9.43
3. Seletar Investments Pte Ltd(2) – 1,963,148,732 51.46
4. Temasek Capital (Private) Limited(2) – 1,963,148,732 51.46
5. Temasek Holdings (Private) Limited(2) – 1,963,148,732 51.46
6. Mitsubishi Corporation(3) 554,689,829 – 14.54
7. Kewalram Singapore Limited(4) 263,000,000 – 6.89
8. Chanrai Investment Corporation Limited(4) – 263,000,000 6.89
9. Kewalram Chanrai Holdings Limited(4) – 263,000,000 6.89
10. GKC Trustees Limited (as trustees of Girdhar Kewalram Chanrai Settlement) (4) – 263,000,000 6.89
11. MKC Trustees Limited (as trustees of Hariom Trust)(4) – 263,000,000 6.89
12. DKC Trustees Limited (as trustees of Damodar Kewalram Chanrai Settlement)(4) – 263,000,000 6.89

Notes:
1. Percentages of interests are calculated based on the total number of 3. Total interest of Mitsubishi Corporation 14.54%
issued ordinary Shares being 3,814,760,485 as at 18 March 2024 4. Kewalram Singapore Limited (“KSL”) is a wholly-owned subsidiary of
(excluding treasury shares). Chanrai Investment Corporation Limited (“CICL”), which in turn is a
2. Temasek Holdings (Private) Limited’s (“Temasek”) interest arises from the wholly-owned subsidiary of Kewalram Chanrai Holdings Limited (“KCHL”).
direct interest held by Breedens Investments Pte. Ltd. (“Breedens”) and By virtue of Section 4(7)(d) of the Securities and Futures Act (Chapter 289
Aranda Investments Pte. Ltd. (“Aranda”). of Singapore), each of CICL and KCHL are deemed to be interested in the
(A) Temasek’s interest through Breedens 42.03% voting shares of the Listed Issuer (“Shares”).
(i) Breedens has a direct interest in 42.03% of GKC Trustees Limited (as trustees of Girdhar Kewalram Chanrai
voting Shares of the Company. Settlement) (“GKC Settlement”), MKC Trustees Limited (as trustees of
Hariom Trust) (“Hariom Trust”) and DKC Trustees Limited (as trustees of
(ii) Breedens is a subsidiary of Seletar Investments Pte Ltd (“Seletar”). Damodar Kewalram Chanrai Settlement) (“DKC Settlement”) are
(iii) Seletar is a subsidiary of Temasek Capital (Private) Limited shareholders of KCHL. By virtue of Section 4(5) of the Securities and
(“Temasek Capital”). Futures Act (Chapter 289 of Singapore), each of the GKC Settlement,
(iv) Temasek Capital is a subsidiary of Temasek. Hariom Trust and DKC Settlement are deemed to be interested in the
voting shares of the Listed Issuer.
(B) Temasek’s deemed interest through Aranda 9.43%
CICL, KCHL, GKC Settlement, Hariom Trust and DKC Settlement are
(i) Aranda has a direct interest in 9.43% of deemed interested in the Shares in which KSL has a direct interest.
voting shares of the Company.
Total interest of the Kewalram Group 6.89%
(ii) Aranda is a subsidiary of Seletar.
(iii) Seletar is a subsidiary of Temasek Capital.
(iv) Temasek Capital is a subsidiary of Temasek.
Total interest of Temasek 51.46%

270 olamgroup.com
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Statistics of Shareholdings
As at 18 March 2024
Issued and fully Paid-up Capital S$6,233,595,001.3556
Number of Ordinary Shares in issue (excluding Treasury Shares) 3,814,760,485
Number of Ordinary Shares held as Treasury Shares 27,864,700
Percentage of Treasury Shares held against the total number of
Issued Ordinary Shares outstanding (excluding Treasury Shares) 0.730%
Class of Shares Ordinary Shares
Voting Rights One vote per share

Distribution of Shareholdings
Size of Shareholdings No. of Shareholders % No. of Shares %

1 – 99 156 1.88 5,641 0.00

100 – 1,000 806 9.69 610,042 0.01
1,001 – 10,000 4,796 57.68 24,365,311 0.64
10,001 – 1,000,000 2,526 30.38 118,928,598 3.12
1,000,001 and above 31 0.37 3,670,850,893 96.23
Total 8,315 100.00 3,814,760,485 100.00

Twenty Largest Shareholders

No. Name No. of Shares %

1 Breedens Investments Pte Ltd 1,603,412,218 42.03

2 HSBC (Singapore) Nominees Pte Ltd 641,482,899 16.82
3 Citibank Nominees Singapore Pte Ltd 373,441,858 9.79
4 Aranda Investments Pte Ltd 359,736,514 9.43
5 Kewalram Singapore Limited 260,000,000 6.82
6 DBS Nominees (Private) Limited 144,224,863 3.78
7 DBS Vickers Securities (Singapore) Pte Ltd 66,303,653 1.74
8 Daiwa Capital Markets Singapore Limited 57,500,000 1.51
9 DBSN Services Pte. Ltd. 41,386,345 1.08
10 Raffles Nominees (Pte.) Limited 39,843,144 1.04
11 OCBC Securities Private Limited 12,565,970 0.33
12 UOB Kay Hian Private Limited 10,983,034 0.29
13 ABN AMRO Clearing Bank N.V. 8,405,547 0.22
14 Phillip Securities Pte Ltd 8,273,085 0.22
15 United Overseas Bank Nominees (Private) Limited 6,821,920 0.18
16 iFAST Financial Pte. Ltd. 4,682,048 0.12
17 CGS-CIMB Securities (Singapore) Pte. Ltd. 4,294,624 0.11
18 OCBC Nominees Singapore Private Limited 3,883,822 0.10
19 Maybank Securities Pte. Ltd. 3,231,051 0.08
20 Mak Seng Fook 3,137,540 0.08
Total 3,653,610,135 95.77

Public Float
Approximately 22.67% of the Company’s Shares are held in the hands of the public. Accordingly, the Company has complied
with Rule 723 of the Listing Manual of the SGX-ST.

Olam Group Limited Annual Report 2023 271

Notice of Annual General Meeting

Notice of Annual General Meeting

Olam Group Limited

(Company Registration No. 202180000W)
(Incorporated in The Republic of Singapore with limited liability)
(the “Company”)
The Company will be holding the Third Annual General Meeting convened on Thursday, 25 April 2024 at 2.00 p.m. Singapore
time (“AGM” or “Meeting”) at Heliconia Junior Ballroom, Level 3, Marina Bay Sands Convention Centre, 10 Bayfront Avenue,
Singapore 018956 (“Physical Meeting”). Shareholders of the Company (“Shareholders”) also have the option of participating
in the AGM by electronic means (“Virtual Meeting”).

Attending the Physical Meeting

(a) Shareholders who wish to attend the Physical Meeting will need to register in person at the registration counters outside the
AGM venue on the day of the AGM. There is NO pre-registration required. Registration for attendance at the Physical
Meeting will commence at 1.00 p.m. Singapore time on that day. Attendees must present their original NRIC/Passport for
verification and registration on the day of the Meeting, and must comply with all health and safety measures and requirements
put in place by the building/venue management at the Physical Meeting, failing which they may not be admitted into or
may be asked to leave the Physical Meeting. Those who feel unwell are advised not to attend the Physical Meeting.

Attending the Virtual Meeting

(b) All Shareholders and CPF/SRS Investors who wish to attend the Virtual Meeting, must pre-register online
at https://www.olamgroup.com/investors/shareholder-centre/annual-general-meeting-2024.html
(the “Pre-Registration Page”) by Monday, 22 April 2024 at 2.00 p.m. Singapore time (being
72 hours before the time appointed for the holding of this AGM). Shareholders and CPF/SRS Investors
can scan the QR Code on the right to go to the Pre-Registration Page.

Arrangements for Investors holding Shares through Relevant Intermediaries Scan for virtual meeting pre-registration

(c) Investors who hold Shares through a relevant intermediary (as defined in Section 181 of Do not scan this QR code if you
the Companies Act 1967 of Singapore (“Companies Act”)) or a depository agent (as notice any signs of tampering or
irregularities. Check that the QR code
defined in Section 81SF of the Securities and Futures Act 2001 of Singapore) (together, leads you to a URL that starts with
“Relevant Intermediaries”, and such investors, “Investors”) who wish to attend this https://www.olamgroup.com/.
AGM (whether in person or virtually) cannot use the Pre-Registration Page; they should Stop access if it leads you to
any other URL, and report this
instead approach their Relevant Intermediary as soon as possible in order for the immediately to Olam via
Relevant Intermediary to make the necessary arrangements for their attendance. [email protected]

Confirmation email with details and instructions to attend the Virtual Meeting
(d) Following successful verification by the Company, a confirmation email which contains unique user credentials, instructions
on how to join the webcast, and other relevant matters (the “Confirmation Email”) will be sent to authenticated
Shareholders, CPF/SRS Investors, proxies and Investors who have been pre-registered to attend the Virtual Meeting by
Wednesday, 24 April 2024 at 2.00 p.m. Singapore time at the email address specified in their pre-registration details.
Shareholders, CPF/SRS Investors, proxies and Investors who do not receive the Confirmation Email by Wednesday,
24 April 2024 at 2.00 p.m. Singapore time but have pre-registered to attend the Virtual Meeting by the deadline of
Monday, 22 April 2024 at 2.00 p.m. Singapore time, should contact the Company’s share registrar, Boardroom
Corporate & Advisory Services Pte Ltd (“Share Registrar”), at telephone number 65-65365355 (during office hours) or via
electronic mail at email address [email protected] immediately.

Submission of Questions
(e) All authenticated Shareholders, CPF/SRS Investors and Investors can submit questions relating to the business of this
AGM in advance of the Meeting up till Wednesday, 17 April 2024, at 2.00 p.m. Singapore time (i) via electronic mail to
email address [email protected]; or (ii) via post to Boardroom Corporate & Advisory Services
Pte Ltd, the Share Registrar at 1 Harbourfront Avenue #14-07 Keppel Bay Tower Singapore 098632. Shareholders and
CPF/SRS Investors who have pre-registered online to attend the Virtual Meeting can additionally submit their questions
online on the Pre-Registration Page. Shareholders, CPF/SRS Investors and Investors who submit questions in advance
of the Meeting should provide their full name, address, contact number, email address and the manner in which they
hold Shares (if you hold Shares directly, please provide your account number with The Central Depository (Pte) Limited
(“CDP”); otherwise, please state if you hold your Shares through CPF or SRS or a Relevant Intermediary, and if so,
which one), for our verification purposes.

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(f) The Company will respond to substantial and relevant questions received by Wednesday, 17 April 2024, at 2.00 p.m.
Singapore time via an announcement on SGXNET and the Company’s website by Saturday, 20 April 2024 at
2.00 p.m. Singapore time (being at least 48 hours prior to the closing date and time for the submission of the Proxy
Form). For any questions that are received after Wednesday, 17 April 2024 at 2.00 p.m. Singapore time, the Company will
respond to such questions either within a reasonable timeframe before the AGM and/or at the AGM itself. When
substantially similar questions are received, the Company may group them together and respond to them on a
consolidated basis.
(g) Shareholders, CPF/SRS Investors, proxies and Investors attending the Physical Meeting will be able to ask questions at
the Meeting. Attendees at the Virtual Meeting can type their questions via a “chatbox” or “live chat” function which will be
made available to the attendees via the online platform for the AGM (however, please note that this will not be available
to attendees accessing the Virtual Meeting via the audio-only feed).

Voting by Shareholders
(h) Shareholders who wish to exercise their voting rights at this AGM may:
(i) (where the Shareholder is an individual) attend and vote “live” at the Physical Meeting or the Virtual Meeting;
(ii) (where the Shareholder is an individual or a corporate) appoint proxy(ies) other than the Chairman of the Meeting
to attend and vote “live” at the Physical Meeting or the Virtual Meeting on their behalf; and
(iii) (where the Shareholder is an individual or a corporate) appoint the Chairman of this Meeting as proxy to vote on
their behalf.
“Live” voting will be conducted during this AGM. Shareholders and proxies attending the Physical Meeting will be provided
with handsets for voting purposes, or may elect to vote using their own web-browser enabled devices.
It is important for Shareholders and proxies who attend the Virtual Meeting to have their own web-browser
enabled devices ready for voting during the Virtual Meeting. Examples of web-browser enabled devices include
mobile smartphones, laptops, tablets or desktop computers with internet capabilities. As they will use the login
credentials provided during pre-registration to cast their votes, they should have their Confirmation Email containing their
unique user credentials and instructions handy for reference for voting purposes.
Instructions will be provided at the start of the Meeting on how to vote. For the avoidance of doubt, “live” voting will not be
available to attendees accessing the Virtual Meeting via the audio-only feed.

Appointment of Proxies
(i) Shareholders who wish to appoint proxies to attend and vote “live” at this AGM (whether in person or virtually) on their
behalf must do both of the following by Monday, 22 April 2024 at 2.00 p.m. Singapore time:
(A) complete and submit the Proxy Form in accordance with the instructions below; and
(B) if the proxy(ies) are to attend the Virtual Meeting, pre-register the proxy(ies) at the Pre-Registration Page.
As an alternative, Shareholders may also appoint the Chairman of the Meeting as proxy to vote on their behalf in respect
of all the Shares held by them. No pre-registration will be required for this option.
If a Shareholder wishes to appoint a proxy or proxies (including the Chairman of this AGM) to vote at this AGM on their
behalf, duly completed Proxy Forms must be deposited with the Company (A) via post to the Share Registrar’s office at
1 Harbourfront Avenue #14-07 Keppel Bay Tower Singapore 098632, or (B) via electronic mail to email address
[email protected] enclosing a clear scanned completed and signed Proxy Form in pdf. In addition,
a Shareholder wishing to appoint proxy(ies) to attend the Virtual Meeting, may appoint proxy(ies) via electronic submission
of the e-Proxy Form at the Pre-Registration Page.
Note:
Please refer to the Notes to the Proxy Form for additional documentary requirements in the event the Proxy Form is signed by an attorney or duly authorised officer.

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Proxy Forms must be received by the Company by Monday, 22 April 2024 at 2.00 p.m. Singapore time (being 72 hours
before the time appointed for the holding of this AGM). Proxy Forms can be downloaded from SGXNET (www.sgx.com) or the
Company’s website (www.olamgroup.com). In the Proxy Form, a Shareholder should specifically direct the proxy on how he is
to vote for, vote against, or abstain from voting on, the resolutions to be tabled at this AGM. If no specific direction as to voting
is given, the proxy (including the Chairman of the Meeting if he is appointed as proxy) may vote or abstain from voting at his
discretion. All valid votes cast via proxy on each resolution will be counted.
The Company may reject any Proxy Form lodged if the Shareholder appointing the proxy is not shown to have Shares entered
against his/her/its name in the Depository Register as at 72 hours before the time appointed for holding this AGM as certified
by CDP to the Company.
Completion and submission of the Proxy Form shall not preclude a Shareholder from attending and voting at this AGM.
Any appointment of a proxy or proxies (including the Chairman of the Meeting) shall be deemed to be revoked if a Shareholder
attends this AGM (whether in person or virtually), and in such event, the Company reserves the right to refuse to admit any
person or persons appointed under the Proxy Form to this AGM.
A Shareholder (who is not a Relevant Intermediary) entitled to attend and vote at a meeting of the Company is entitled to
appoint one (1) or two (2) proxies to attend and vote on his/her/its behalf. A proxy need not be a Shareholder. Where a
Shareholder appoints two (2) proxies, the appointments shall be invalid unless he/she/it specifies the number of Shares to be
represented by each proxy.
A Shareholder who is a Relevant Intermediary is entitled to appoint more than two (2) proxies to attend and vote at this AGM,
but each proxy must be appointed to exercise the rights attached to a different Share or Shares held by such Shareholder.
Where such Shareholder appoints two (2) or more proxies, the appointments shall be invalid unless such Shareholder specifies
the number of Shares to be represented by each proxy.

Voting by Investors holding Shares through Relevant Intermediaries and CPF/SRS Investors
(j) Investors holding Shares through Relevant Intermediaries and CPF/SRS Investors may only exercise their votes in the
following manner:
(i) attend and vote “live” at this AGM, if they are appointed as proxies by their respective Relevant Intermediaries/
CPF Agent Banks/SRS operators; or
(ii) specify their voting instructions to/arrange for their votes to be submitted by their respective Relevant Intermediaries/
CPF Agent Banks/SRS operators.
Investors holding Shares through Relevant Intermediaries and CPF/SRS Investors who wish to attend and vote at this AGM
should approach their respective Relevant Intermediaries/ CPF Agent Banks/SRS operators as soon as possible. CPF/SRS
Investors who wish to exercise their votes should approach their respective CPF Agent Bank/SRS operator at least seven (7)
working days before this AGM (i.e. by Tuesday, 16 April 2024 at 2.00 p.m. Singapore time).
For the avoidance of doubt, Investors holding Shares through Relevant Intermediaries and CPF/SRS Investors should not
use the Proxy Form.

Voting Results
(k) An independent scrutineer will be appointed by the Company to direct and supervise the counting and validation of all
valid votes cast through “live” voting at this AGM and through Proxy Forms received as of the above-mentioned deadline.
The voting results will be announced during this AGM (and displayed on-screen for the “live” video webcast) in respect of
the resolutions put to the vote at this AGM. The Company will also issue an announcement on SGXNET on the results of the
resolutions put to vote at this AGM.

Documents and Information Relating to this AGM

Printed copies of the Notice of AGM, the Request Form and the Proxy Form have been mailed to Shareholders, and are also
available on SGXNET (www.sgx.com) and the Company’s website (www.olamgroup.com).
Shareholders are advised to continue to check SGXNET and the Company’s website regularly for any updates
relating to this AGM.

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NOTICE IS HEREBY GIVEN that the Third Annual General Meeting of the Company will be held at Heliconia Junior Ballroom,
Level 3, Marina Bay Sands Convention Centre, 10 Bayfront Avenue, Singapore 018956 and by electronic means on Thursday,
25 April 2024 at 2.00 p.m. Singapore time for the purpose of considering, and if thought fit, passing, the following resolutions:
Ordinary
Ordinary Business Resolutions

1. To receive and adopt the Directors’ Statement and the Audited Consolidated Financial Statements of the Resolution 1
Company for the financial year ended 31 December 2023 (“FY2023”) together with the Auditors’ Report
thereon.
Please refer to the explanatory note (i) provided.

2. To declare a second and final dividend of 4.0 cents per share, tax exempt (one-tier) for the financial year Resolution 2
ended 31 December 2023.
Please refer to the explanatory note (ii) provided.

3. To re-elect the following Directors retiring pursuant to Regulation 107 of the Constitution of the Company
(the “Constitution”), and who, being eligible, offer themselves for re-election:
(a) Mr Lim Ah Doo Resolution 3
(b) Dr Ajai Puri Resolution 4
(c) Dr Joerg Wolfgang Wolle Resolution 5
In addition, to note:
“That Mr Nihal Vijaya Devadas Kaviratne CBE will retire with effect from the conclusion of the Meeting.”
Please refer to the explanatory note (iii) provided.

4. To re-elect the following Directors who will cease to hold office in accordance with Regulation 113 of the
Constitution, and who, being eligible, offer themselves for re-election:
(a) Mr Shuji Kobayashi Resolution 6
(b) Mr Yuji Tsushima Resolution 7
Please refer to the explanatory note (iv) provided.

5. To approve the payment of Directors’ fees of up to S$2,700,000 for the financial year ending Resolution 8
31 December 2024 (“FY2024”) (2023: S$3,000,000).
Please refer to the explanatory note (v) provided.

6. To re-appoint Messrs Ernst & Young LLP as the auditors of the Company and to authorise the Directors Resolution 9
to fix their remuneration.
Please refer to the explanatory note (vi) provided.

Ordinary
Special Business Resolutions

To consider and, if thought fit, to pass the following resolutions as Ordinary Resolutions:
7. General Authority to Issue Shares Resolution 10
That pursuant to Section 161 of the Companies Act 1967 of Singapore (the “Companies Act”) and
Rule 806 of the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”)
(the “Listing Manual”), the Directors be authorised and empowered to:
(a) (i) issue ordinary shares in the capital of the Company (“Shares”) whether by way of rights,
bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would
require Shares to be issued, including but not limited to the creation and issue of (as well as
adjustments to) options, warrants, debentures or other instruments convertible into Shares,
at any time and upon such terms and conditions and for such purposes and to such persons as the
Directors may in their absolute discretion deem fit; and
(b) (notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue
Shares in pursuance of any Instruments made or granted by the Directors while this Resolution was
in force,

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Ordinary
Special Business Resolutions

provided that:
(1) the aggregate number of Shares (including Shares to be issued in pursuance of the Instruments,
made or granted pursuant to this Resolution) to be issued pursuant to this Resolution shall not
exceed fifty per cent. (50%) of the total number of issued Shares (excluding treasury shares and
subsidiary holdings) (as calculated in accordance with sub-paragraph (2) below), of which the
aggregate number of Shares to be issued other than on a pro rata basis to shareholders of the
Company (“Shareholders”) shall not exceed ten per cent. (10%) of the total number of issued
Shares (excluding treasury shares and subsidiary holdings) (as calculated in accordance with
sub-paragraph (2) below);
(2) (subject to such calculation as may be prescribed by the SGX-ST) for the purpose of determining
the aggregate number of Shares that may be issued under sub-paragraph (1) above, the total
number of issued Shares (excluding treasury shares and subsidiary holdings) shall be based on the
total number of issued Shares (excluding treasury shares and subsidiary holdings) at the time of the
passing of this Resolution, after adjusting for:
(A) new Shares arising from the conversion or exercise of any convertible securities;
(B) new Shares arising from exercising share options or vesting of share awards which are
outstanding or subsisting at the time of the passing of this Resolution; and
(C) any subsequent bonus issue, consolidation or subdivision of Shares;
(3) in exercising the authority conferred by this Resolution, the Company shall comply with the
provisions of the Companies Act and the Listing Manual for the time being in force (unless such
compliance has been waived by the SGX-ST) and the Constitution; and
(4) unless revoked or varied by the Company in a general meeting, such authority shall continue in
force until the conclusion of the next annual general meeting of the Company (“AGM”) or the date
by which the next AGM is required by law to be held, whichever is the earlier.
Please refer to the explanatory note (vii) provided.

8. Renewal of the Share Buyback Mandate Resolution 11

That:
(a) for the purposes of the Companies Act, the exercise by the Directors of all the powers of the
Company to purchase or otherwise acquire Shares not exceeding in aggregate the Maximum Limit
(as defined below), at such price(s) as may be determined by the Directors from time to time up to
the Maximum Price (as defined below), whether by way of:
(i) market purchase(s) (each a “Market Purchase”) on the SGX-ST; and/or
(ii) off-market purchase(s) (each an “Off-Market Purchase”) in accordance with any equal
access scheme(s) as may be determined or formulated by the Directors as they consider fit,
which scheme(s) shall satisfy all the conditions prescribed by the Companies Act,
and otherwise in accordance with all other laws and regulations, including but not limited to,
the provisions of the Companies Act and listing rules of the SGX-ST as may for the time being
be applicable, be and is hereby authorised and approved generally and unconditionally
(the “Share Buyback Mandate”);
(b) unless revoked or varied by the Company in a general meeting, the authority conferred on the
Directors pursuant to this Resolution may be exercised by the Directors at any time and from time to
time during the period commencing from the date of the passing of this Resolution and expiring on
the earlier of:
(i) the date on which the next AGM of the Company is held or required by law to be held; or
(ii) the date on which the purchases or acquisitions of Shares by the Company pursuant to the
Share Buyback Mandate are carried out to the full extent mandated,
whichever is the earlier;

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Ordinary
Special Business Resolutions

(c) in this Resolution:

“Maximum Limit” means that number of issued Shares representing not more than five percent.
(5%) of the total number of issued Shares (excluding treasury shares and subsidiary holdings) as at
the date of the passing of this Resolution, unless the Company has effected a reduction of the share
capital of the Company in accordance with the applicable provisions of the Companies Act, at any
time during the Relevant Period (as defined below), in which event the total number of issued Shares
shall be taken to be the total number of issued Shares as altered (excluding any treasury shares
that may be held by the Company from time to time and subsidiary holdings);
“Relevant Period” means the period commencing from the date of passing of this Resolution and
expiring on the date the next AGM of the Company is held or is required by law to be held,
whichever is the earlier; and
“Maximum Price” in relation to a Share to be purchased or acquired, means the purchase price
(excluding brokerage, stamp duties, commission, applicable goods and services tax and other
related expenses) which shall not exceed 105% of the Average Closing Price.
where:
“Average Closing Price” means the average of the closing market prices of the Shares over the last
five (5) Market Days (a “Market Day” being a day on which the SGX-ST is open for trading in securities),
on which transactions in the Shares were recorded, before the day on which the purchase or
acquisition of Shares was made or, as the case may be, the day of the making of the offer pursuant
to the Off-Market Purchase, and deemed to be adjusted for any corporate action that occurs during
the relevant five (5) Market Days and the day on which the Market Purchase was made, or as the
case may be, the day of the making of the offer pursuant to the Off-Market Purchase; and
“day of the making of the offer” means the day on which the Company announces its intention to
make an offer for an Off-Market Purchase, stating therein the purchase price (which shall not be
more than the Maximum Price) for each Share and the relevant terms of the equal access scheme
for effecting the Off-Market Purchase; and
(d) the Directors and/or any of them be and are hereby authorised to do all acts and things and to
execute all such documents as may be required or as they or he or she may consider necessary,
desirable or expedient or in the interests of the Company to give effect to the transactions
contemplated and/or authorised by this Resolution.
Please refer to the explanatory note (viii) provided.

9. Authority to Issue Shares under the OG Share Grant Plan Resolution 12

That the Directors be and are hereby authorised to:
(a) grant awards in accordance with the provisions of the OG Share Grant Plan; and
(b) allot and issue from time to time such number of fully paid-up Shares as may be required to be
delivered pursuant to the vesting of awards under the OG Share Grant Plan,
provided that the total number of Shares which may be allotted and issued and/or Shares which may be
delivered pursuant to awards granted under the OG Share Grant Plan on any date, when added to:
(i) the total number of new Shares allotted and issued and/or to be allotted and issued, and issued
Shares transferred and/or to be transferred in respect of all awards granted under the OG Share
Grant Plan; and
(ii) all Shares, options or awards granted under any other share schemes of the Company then in force,
shall not exceed ten per cent. (10%) of the total number of issued Shares (excluding treasury shares and
subsidiary holdings) from time to time, and that such authority shall, unless revoked or varied by the
Company in a general meeting, continue in force until the conclusion of the next AGM or the date by
which the next AGM is required by law to be held, whichever is the earlier.
Please refer to the explanatory note (ix) provided.

By Order of the Board

Michelle Tanya Kwek
Company Secretary
Singapore, 9 April 2024

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Please read the following notes and the Explanatory notes of the resolutions to be
explanatory notes to the resolutions as proposed at the AGM
Resolutions 1 to 12 are proposed as ordinary resolutions. For an ordinary
set out below before deciding how to vote. resolution to be passed, more than half of the votes cast must be in favour of
the resolution.
Personal data privacy:
(i) Ordinary Resolution 1
By submitting an instrument appointing a proxy(ies)
The Companies Act requires the audited consolidated financial
and/or representative(s) to attend, speak and vote at the statements of the Company for each financial year to be tabled before
AGM and/or any adjournment thereof, (i) a member of the the Shareholders in a general meeting. The audited consolidated
Company consents to the collection, use and disclosure of financial statements are to be accompanied by the Directors’ Statement
and the Auditors’ Report thereon. The Directors’ Statement and the
the member’s personal data by the Company (or its agents) audited consolidated financial statements for the financial year ended
for the purpose of the processing and administration by the 31 December 2023 (“FY2023”) together with the Auditors’ Report thereon
Company (or its agents) of proxies and representatives are provided in the Financial Report of the Annual Report.

appointed for the AGM (including any adjournment thereof) A copy may also be read on our website at olamgroup.com/investors.html.
and the preparation and compilation of the attendance lists, (ii) Ordinary Resolution 2
minutes and other documents relating to the AGM Ordinary Resolution 2 is to declare a second and final tax-exempt
dividend of 4.0 cents per Share for FY2023. Together with the sum of
(including any adjournment thereof) recordings and 3.0 cents per Share of interim dividend declared for the first-half of
transmitting images and/or voice recordings when FY2023, the total dividend for FY2023 is 7.0 cents per Share
broadcasting the AGM proceedings through webcast, and (approximately S$267.7 million). The Company does not have a fixed
dividend policy. The Directors’ policy is to recommend dividends
in order for the Company (or its agents) to comply with any consistent with the Company’s overall governing objective of maximising
applicable laws, listing rules, regulations and/or guidelines intrinsic value for its continuing Shareholders. Dividend payments are
affected by matters such as the level of the Company’s future earnings,
(collectively, the “Purposes”); (ii) warrants that where the results of operations, capital requirements, cash flows, financial
member discloses the personal data of the member’s conditions, the Company’s plans for expansion, general business
proxy(ies) and/or representative(s) to the Company (or its conditions and other factors, including such legal or contractual
restrictions as may apply from time to time or which the Directors may
agents), the member has obtained the prior consent of such consider appropriate in the interests of the Company.
proxy(ies) and/or representative(s) for the collection, use and The Directors will consider all these factors before proposing any dividends.
disclosure by the Company (or its agents) of the personal The Company may, by ordinary resolution at a general meeting of
data of such proxy(ies) and/or representative(s) for the Shareholders, declare dividends, but the amount of such dividends shall
not exceed the amount recommended by the Directors. The Directors
Purposes; and (iii) agrees that the member will indemnify may also declare an interim dividend without seeking Shareholders’
the Company in respect of any penalties, liabilities, claims, approval. Potential investors should note that this statement is a statement
demands, losses and damages as a result of the member’s of the Company’s present intention and shall not constitute a legally
binding commitment in respect of the Company’s future dividends and
breach of warranty. dividend pay-out ratio which may be subject to modification (including
reduction or non-declaration thereof) in the Directors’ sole and absolute
Website discretion. All dividends are distributed as tax-exempt dividends in
accordance with the Income Tax Act, Chapter 134 of Singapore.
The Company’s website, www.olamgroup.com, provides
(iii) Ordinary Resolutions 3, 4 and 5
more information about the Company, including the latest
Mr Lim Ah Doo will, upon re-election as a Director, continue his office as
Annual Report, the Letter to Shareholders, the Notice of AGM Non-Executive Director. He will remain as Chairman of the Board and
and the Proxy Form. the Nomination and Remuneration Committee (“NRC”). He will be
considered independent.
Dr Ajai Puri will, upon re-election as a Director, continue his office as
Non-Executive Director. At the conclusion of the AGM and following the
retirement of Mr Nihal Vijaya Devadas Kaviratne CBE at the conclusion of
the AGM, he will assume chairmanship of the Sustainability Committee
(“SC”) and remain as a member of the Audit and Risk Committee
(“ARC”). He will be considered independent.
Dr Joerg Wolfgang Wolle will, upon re-election as a Director, continue
his office as Non-Executive Director and will remain as a member of the
NRC. He will be considered independent.
Please refer to the Addendum for the additional information on the
aforementioned Directors provided pursuant to Rule 720(6) of the Listing
Manual. You may also refer to the Governance Report of the 2023
Annual Report for the profile of each of these Directors.
The aforementioned Directors will refrain from making any recommendation
on and, being Shareholders, shall abstain from voting on respective
ordinary resolution in relation to their re-election. The aforementioned
Directors will not be able to accept appointment as proxies for any
Shareholder to vote in respect of these resolutions unless specific
directions as to voting have been specified in the relevant proxy form.
(iv) Ordinary Resolutions 6 and 7
Mr Shuji Kobayashi will, upon re-election as a Director, continue his
office as Non-Executive Director. He will remain as a member of the ARC
and the NRC.
Mr Yuji Tsushima will, upon re-election as a Director, continue his office
as Non-Executive Director. He will remain as a member of the SC.
Please refer to the Addendum for the additional information on Mr Shuji
Kobayashi and Mr Yuji Tsushima provided pursuant to Rule 720(6) of the
Listing Manual. You may also refer to the Governance Report of the 2023
Annual Report for their profile.

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(v) Ordinary Resolution 8 (viii) Ordinary Resolution 11

Ordinary Resolution 8 seeks the payment of up to S$2,700,000 to all Ordinary Resolution 11, if passed, will empower the Directors from the
Directors (other than the Executive Directors) as Directors’ fees for date of the passing of this Ordinary Resolution 11 until the earlier of the
FY2024. The Directors’ fees approved for FY2023 were S$3,000,000 date of the next AGM of the Company, or the date by which the next
with the aggregate fees paid quarterly in arrears to the Non-Executive AGM of the Company is required by law to be held, to purchase or
Directors. For Non-Executive Directors entitled to receive Directors’ fees in otherwise acquire, by way of Market Purchases or Off-Market
the form of shares, approximately 70% of the Directors’ fees was paid in Purchases, up to five per cent. (5%) of the total number of issued Shares
cash and approximately 30% in the form of Olam shares. The amount of (excluding treasury shares and subsidiary holdings) as at the date of the
Directors’ fees paid to each Director for FY2023 is disclosed in full on passing of this Ordinary Resolution 11 on the terms of the Share Buyback
page 172 of the Governance Report of the 2023 Annual Report. Mandate as set out in the Letter, unless such authority is earlier revoked
For Directors’ fees payable to the Non-Executive Directors for FY2024 or varied by the Company in a general meeting.
(excluding certain Non-Executive Directors who, under their separate The Company may use internal sources of funds or borrowings or a
arrangements with their employer, do not retain their Directors’ fees), combination of both to finance the Company’s purchase or acquisition
the equity component (comprising approximately 30% of the Directors’ of Shares pursuant to the Share Buyback Mandate.
fees) is intended to be paid out after the announcement by the Company
The amount of financing required for the Company to purchase or
of its unaudited full year financial statements for FY2024, with the actual
acquire its Shares, and the impact of such purchases or acquisitions of
number of Shares to be awarded to each such Non-Executive Director
Shares on the Company’s financial position, cannot be realistically
holding office at the time of payment to be determined by reference to
calculated or quantified as at the date of this Notice of AGM as these will
the volume weighted average price of a Share on SGX-ST over the
depend on, inter alia, the aggregate number of Shares purchased or
10 trading days after the date of the announcement by the Company of
acquired, whether the purchase or acquisition is made out of capital or
its unaudited full year financial statements for FY2024. The number of
profits, the purchase prices paid for such Shares, the amount (if any)
Shares to be awarded will be rounded down to the nearest hundred and
borrowed by the Company to fund the purchases or acquisitions and
any residual balance will be settled in cash. Each such Non-Executive
whether the Shares purchased or acquired are cancelled or held as
Director is committed to holding, during his or her Board tenure, Olam
treasury shares. For illustrative purposes only, the financial effects of
shares of a value equivalent to approximately one year’s basic retainer.
the purchase or acquisition of Shares at the maximum limit of 5% of the
In the event the Non-Executive Director leaves the Company prior to the
total number of issued Shares (excluding treasury shares and subsidiary
acquisition of the Shares, the directors’ fees due to him/her up to his/her
holdings), at the Maximum Price per Share (being the price equivalent
date of cessation will be paid to him/her in cash. If Ordinary Resolution 8
to 5% above the Average Closing Price of the Shares for the five (5)
is passed, it is intended that such equity grant will be made in the form
consecutive Market Days on which the Shares were traded on the
of awards under the OG Share Grant Plan with no vesting condition or
SGX-ST immediately preceding the Latest Practicable Date) based on
the Company will purchase the Shares from the market around the date
the audited consolidated financial statements of the Company for its
of the announcement by the Company of its unaudited full year financial
financial year ended 31 December 2023 and certain assumptions, are set
statements for FY2024.
out in paragraph 2.7 of the Letter.
The Non-Executive Directors will refrain from making any recommendation
(ix) Ordinary Resolution 12
on and, being shareholders, shall abstain from voting on Ordinary
Resolution 8. The aforementioned Directors will not be able to accept Ordinary Resolution 12, if passed, will empower the Directors to grant
appointment as proxies for any Shareholder to vote in respect of this awards under the OG Share Grant Plan and to issue new Shares in
resolution unless specific directions as to voting have been specified in respect of such awards, subject to the limitations described in this
the relevant proxy form. Ordinary Resolution 12. Unless such authority has been revoked or varied
by the Company in a general meeting, such authority shall expire at the
Ordinary Resolution 8, if passed, will facilitate the quarterly payment in
conclusion of the next AGM, or the date by which the next AGM is
arrears of Directors’ fees during FY2024 in which the fees are incurred.
required by law to be held, whichever is the earlier.
(vi) Ordinary Resolution 9
More details on the OG Share Grant Plan may be found in the
Ordinary Resolution 9 seeks the re-appointment of Ernst & Young LLP Governance Report and the Financial Report of the 2023 Annual Report.
as independent auditors to the Company (the “Auditors”) and requests
authority for the Directors to set the remuneration of the Auditors.
The Board is careful that the Auditors’ independence should not be
compromised and the ARC takes responsibility for reviewing the Notice of Record Date and Payment Date
performance of the Auditors and making recommendations about the As stated in the Notice of Record Date and Payment Date
scope of their work and fees. The ARC has recommended to the Board
that the appointment of Ernst & Young LLP should be renewed until the
set out in the Company’s announcement dated 28 February
conclusion of the next AGM. 2024, the Company wishes to notify Shareholders that the
More details on the external auditors and the review by the ARC may Share Transfer Books and Register of Members of the
be found in the Governance Report on pages 178 to 184 of the 2023 Company will be closed at 5.00 p.m. on 6 May 2024 for the
Annual Report.
preparation of dividend warrants. Duly completed registrable
(vii) Ordinary Resolution 10
transfers of Shares received by the Company’s Share
Ordinary Resolution 10, if passed, will empower the Directors, effective
until the earlier of (1) the conclusion of the next AGM, or (2) the date by
Registrar, Boardroom Corporate & Advisory Services (Pte)
which the next AGM is required by law to be held (unless such authority Ltd, at 1 Harbourfront Avenue, #14-07 Keppel Bay Tower,
is varied or revoked by the Company in a general meeting), to issue Singapore 098632 up to 5.00 p.m. on 6 May 2024 will be
Shares, make or grant Instruments convertible into Shares and to issue
Shares pursuant to such Instruments, up to a number not exceeding, registered to determine shareholders’ entitlements to the
in total, fifty per cent. (50%) of the total number of issued Shares, proposed second and final dividend.
of which up to ten per cent. (10%) may be issued other than on a
pro rata basis to Shareholders. Although the Listing Manual enables the Members whose Securities Accounts with The Central
Company to seek a mandate to permit its Directors to issue Shares up to Depository (Pte) Limited are credited with Shares at
the fifty per cent. (50%) limit if made on a pro rata basis to Shareholders,
and up to a sub-limit of twenty per cent. (20%) if made other than on a 5.00 p.m. on 6 May 2024 will be entitled to the proposed
pro rata basis to Shareholders, the Company is nonetheless only seeking second and final dividend. Payment of the dividend,
a sub-limit of ten per cent. (10%).
if approved by the members at the AGM to be held on
For determining the aggregate number of Shares that may be issued,
the total number of issued Shares will be calculated based on the total
25 April 2024, will be made on 13 May 2024.
number of issued Shares (excluding treasury shares and subsidiary
holdings) at the time this Ordinary Resolution 10 is passed after
adjusting for new Shares arising from the conversion or exercise of any
convertible securities or share options or vesting of share awards which
are outstanding or subsisting at the time when this Ordinary Resolution
10 is passed and any subsequent bonus issue, consolidation or
subdivision of Shares.

Olam Group Limited Annual Report 2023 279

Addendum to the Annual Report 2023

Addendum to the Annual Report 2023

Additional Information on Directors seeking Re-election pursuant to Rule 720(6)

of the Listing Manual of the SGX-ST
Mr Lim Ah Doo, Dr Ajai Puri, Dr Joerg Wolfgang Wolle, Mr Shuji Kobayashi and Mr Yuji Tsushima are the Directors seeking
re-election at the forthcoming annual general meeting of the Company to be convened on 25 April 2024 (“AGM”) under
Ordinary Resolutions 3, 4, 5, 6 and 7 as set out in the Notice of AGM dated 9 April 2024 (collectively, the “Retiring Directors”
and each a “Retiring Director”).
Pursuant to Rule 720(6) of the Listing Manual of the SGX-ST, the information relating to the Retiring Directors as set out in
Appendix 7.4.1 to the Listing Manual of the SGX-ST is set out below:

Dr Joerg Mr Shuji Mr Yuji

Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

Date of 15 March 2022 15 March 2022 15 March 2022 5 May 2023 4 March 2024
Appointment

Date of Last 25 April 2022 25 April 2022 25 April 2022 Not applicable Not applicable
Re-appointment

Age 74 70 66 55 54

Country of Singapore United Kingdom Switzerland Japan Japan

principal residence

The Board’s comments N.A. N.A. N.A. N.A. N.A.

on this appointment
(including rationale,
selection criteria,
board diversity
considerations,
and the search and
nomination process)

Whether appointment Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive

is executive, and
if so, the area of
responsibility

Job Title • Independent and • Independent and • Independent and • Non-Executive • Non-Executive Director
(e.g. Lead ID, Non-Executive Non-Executive Non-Executive Director • Member, SC
AC Chairman, Director Director Director • Member, ARC
AC Member etc.) • Chairman, • Member, Audit & Risk • Member, NRC • Member, NRC
Nomination & Committee (“ARC”)
Remuneration • Member,
Committee (“NRC”) Sustainability
Committee (“SC”)

Professional • Master in Business • PhD (Food Science), • PhD in Engineering • Advanced • Advanced
qualifications Administration, University of Maryland, “summa cum laude”, Management Program, Management Program,
Cranfield School of USA Technical University Wharton Business INSEAD Business
Management, UK • MBA, Crummer Chemnitz, Germany School, University School, Fontainebleau,
• Degree (Honours) Business School, • Executive Development of Pennsylvania, France
in Engineering, Rollins College, USA Program, IMD Philadelphia, USA • General Management
Queen Mary College, Lausanne, Switzerland • Bachelor of Economics, Program, Harvard
University of London, • Stanford Executive West Virginia University, Business School,
UK Program, GSB Stanford Morgantown, USA Massachusetts, USA
University, Palo Alto, • B.A. Economics,
CA, USA The University of
Tokyo, Japan

280 olamgroup.com
 Financial
report

Dr Joerg Mr Shuji Mr Yuji

Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

Working experience Mr Lim Ah Doo has over Dr Ajai Puri brings more Appointed CEO of Siber Mr Shuji Kobayashi is Mr Yuji Tsushima is
and occupation(s) 40 years of broad and than three decades of Hegner Ltd. in 2000, currently the Senior Vice currently the Division Chief
during the past 10 in-depth experience in global food and agriculture Dr Joerg Wolle was President of Mitsubishi Operating Officer (COO),
years banking and commerce. industry experience. instrumental in the Corporation (“MC”), Food Resources Division
In banking, his past His wide-ranging expertise 130-year-old Asian- a conglomerate listed on of Mitsubishi Corporation
working experience spans the fields of focused trading the Tokyo Stock Exchange (“MC”), a conglomerate
includes an 18-year innovation, science and company’s rapid with a JPY 13 trillion market listed on the Tokyo
career at Morgan Grenfell technology, supply chain turnaround. He led the capitalisation, over 1,300 Stock Exchange with
(1977 to 1995), during development, product transformation of the subsidiaries world-wide JPY 13 trillion in market
which he held several integrity and consumer company into the leading and 79,000+ employees capitalisation. He joined
key positions, including marketing. From 1981 to business services and on a consolidated basis. MC in 1993 and has since
that of Chairman of 2003, Dr Puri worked at distribution group in the Mr Kobayashi has over held various managerial
Morgan Grenfell (Asia) Minute Maid (part of The ASEAN region with more 20 years’ experience in the roles in MC in Tokyo as well
Limited and led several Coca-Cola Company) than 33,000 specialised Food & Agriculture industry as in its overseas offices,
landmark transactions. where he held a variety staff following its merger during which he held including USA and Indonesia.
In commerce, he held the of roles in areas such with two other Swiss- managerial roles at With over 30 years of
top executive position at as research and based Asia-focused multiple Food & Agriculture experience in the global
a major global-leading development, marketing distribution companies. companies worldwide, food and beverage
resource-based group, and general management. During his tenure as CEO, including the USA, Brazil, industry, in his current
and has been a director On leaving Coca-Cola in sales and profits grew Australia, Indonesia, role as Division COO,
of several large-sized 2003, he held the position three- and six-fold China, Singapore, and Mr Tsushima oversees MC’s
public and private of Senior Vice President respectively and the Japan. In his current role, various food and beverage
companies in and outside – Science and Technology company was listed on Mr Kobayashi is the Head interests from agri-products
of Singapore. Mr Lim was for the company’s juice the Zurich Stock of Food Industry Group procurement, trading,
previously the President business in North Exchange. Between 2002 CEO Office and oversees processing to sales and
and subsequently the America. Between 2003 and 2017, he was the strategy and key marketing of consumer
Non-executive Vice and 2007, Dr Puri was President and CEO of investments of the Food products.
Chairman of RGE Pte. Ltd. Executive Board Member DKSH Holding Ltd., Industry portfolio, which
(formerly known as RGM and President Research, becoming its chairman includes Livestock, Meat &
International Pte Ltd). Development and Product in 2017, a position he Dairy Products, Global Fast
Mr Lim also chaired the Integrity at Amsterdam- held until 2019. Dr Wolle Moving Consumer Goods,
Capital and Investment based Royal Numico N.V., was a member of the Food Resources, Produce &
Committee of Olam a specialist nutrition Supervisory Board of Marine Products and Food
Group Limited, before company. He previously Louis Dreyfus Company Sciences. Prior to his current
it was dissolved on held a number of B.V. (2014 to 2018) and role, Mr Kobayashi was the
1 January 2024, with its non-executive roles at a member of the Board Division Chief Operating
role and responsibilities firms including Firmenich of Directors of UBS Ltd Officer (COO), Food
subsumed by the Board. SA (2014-2023), Tate & (2006 to 2009) and Resources Division,
Mr Lim was a director Lyle PLC (2012-2021), DietheIm Keller Holding overseeing MC’s global food
of Olam International Nutreco NV (2009-2015) Ltd. (2004 to 2019). ingredients origination and
Limited prior to the and Barry Callebaut AG Dr Wolle is currently merchandising operations,
Scheme of Arrangement (2011-2014). Dr Puri is Chairman of Kuehne + including corn, wheat,
that was completed on currently a Non-executive Nagel International Ltd soybean, cocoa and coffee,
15 March 2022 with Director at Fresh Del and KlingeInberg AG. and the manufacturing of
Olam Group Limited Monte Produce Inc., IMI products, such as animal
Dr Wolle was a director
taking over the listing PLC, Britannia Industries feed, wheat flour and sugar.
of Olam International
entity status on SGX-ST Ltd, and privately held During his executive
Limited prior to the
from Olam International Califa Farms LP. Dr Puri management career at MC,
Scheme of Arrangement
Limited as part of the was formerly a member Mr Kobayashi previously
that was completed on
Group’s re-organisation. of the CIC before it served in the Corporate
15 March 2022 with
was dissolved on Strategy & Planning
Olam Group Limited
1 January 2024. Department, where he was
taking over the listing
Dr Puri was a director entity status on SGX-ST responsible for the
of Olam International from Olam International overarching strategic
Limited prior to the Limited as part of the planning and generated
Scheme of Arrangement Group’s re-organisation multiple beneficial
that was completed on opportunities beyond MC’s
15 March 2022 with traditional business
Olam Group Limited boundaries. Prior to the
taking over the listing merger of the Company’s
entity status on SGX-ST Board Risk Committee with
from Olam International the Audit Committee to form
Limited as part of the the Audit and Risk
Group’s re-organisation. Committee, Mr Kobayashi
was a member of both the
Board Risk Committee and
the Audit Committee. Mr
Kobayashi was also formerly
a member of the Capital and
Investment Committee
before it was dissolved on
1 January 2024.

Olam Group Limited Annual Report 2023 281

Addendum to the Annual Report 2023

Dr Joerg Mr Shuji Mr Yuji

Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

Shareholding interest 710,900 ordinary shares 83,194 ordinary shares 104,798 ordinary shares Nil Nil
in the listed issuer
and its subsidiaries?

Any relationship Nil Nil Nil Nil Nil

(including immediate
family relationship) with
any existing director,
existing executive officer,
the issuer and/or
substantial shareholder
of the listed issuer or
of any of its principal
subsidiaries

Conflict of interests Nil Nil Nil Nil Nil

(including any
competing business)

Undertaking (in the Yes Yes Yes Yes Yes

format set out in
Appendix 7.7) under
Rule 720(1) has been
submitted to the
listed issuer

Other Principal Commitments Including Directorships

Dr Joerg Mr Shuji Mr Yuji
Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

Past • ARA Trust Management • Firmenich SA • Olam International • MC Agri Alliance Ltd. • Kadoya Sesame Mills
(for the last 5 years) (Cache) Limited • Tate and Lyle PLC Limited • Nosan Corporation Incorporated
(formerly known as • Global Alliance for • MC Life Sciences • Mitsubishi Corporation
ARA-CWT Trust Improved Nutrition Holdings Limited Life Sciences Limited
Management (Cache) (G.A.I.N.) • PT. Kaneka Foods • Kewpie Malaysia Sdn. Bhd.
Limited – trustee • Olam International Indonesia • Nissin Foods (U.S.A.)
manager of Cache Limited • Agrex do Brasil S.A. Co.,Inc.
Logistics Trust) • YSW & Co.,Ltd.
• Commissioner to the • Shandong Luling Fruit
High-Level Commission Juice Co., Ltd.
on Carbon Pricing and
Competitiveness by • Dan Kaffe (Malaysia)
World Bank Group Sdn Bhd
• STT GDC Pte. Ltd. • imperfect Inc.
• Virtus HoldCo Limited • Indo Nissin Foods Private
Ltd.
• Singapore Technologies
Telemedia Pte. Ltd. • Nissin Foods (Thailand)
Co., Ltd
• STT Communications
Ltd. • PT. Nissin Foods Indonesia
• STT Global Data Centres • PT. MC Living Essentials
India Private Limited Indonesia
• Olam International • Oriental Coffee Alliance
Limited Sdn. Bhd.
• PT. Kaneka Foods
Indonesia
• Ipanema Agricola S.A.
• Ipanema Comercial e
Exportadora S.A.
• PT. MCdelica Food
Indonesia
• PT. Kewpie Indonesia
• PT. Fast Retailing
Indonesia
• Sesaco Corporation
• PT. Elleair International
Manufacturing Indonesia

Present Listed company Listed company Listed company Listed company Listed company
• GDS Holdings Ltd. • Fresh Del Monte • Kuehne + Nagel Nil Nil
(Director) Produce Inc. (Director) International Ltd.
(Chairman) Non-listed company Non-listed company
• GP Industries Ltd. • IMI PLC (Director)
(Director) • Britannia Industries • KlingeInberg AG • Mitsubishi Corporation • Mitsubishi Corporation
• Singapore Ltd. (Director) (Chairman) (Senior Vice President, (Division Chief Operating
Technologies General Manager, Officer, Food Resources
Engineering Ltd. Non-listed company Non-listed company Food Industry Group Division)
(Director) • Kuehne Holding Ltd. CEO Office) • MC Agri Alliance Ltd.
• Califa Farms LP (Director)
(Director) (Director) • Mitsubishi Corporation
Non-listed company Life Sciences Limited • MC Food Holdings
• Kuehne Foundation Asia Pte. Ltd.
• U Mobile Sdn Bhd (Member, Board of (Director)
(Managing Director)
(Director) Trustees) • Premier Foods Holding
Pte. Ltd. (Director)
• Lluvia Limited (Director)
• Aventine Limited
(Director)

282 olamgroup.com
 Financial
report

Information required pursuant to Listing Rule 704(7)

Dr Joerg Mr Shuji Mr Yuji
Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

(a) Whether at any time during the No No No No No

last 10 years, an application or a
petition under any bankruptcy law
of any jurisdiction was filed against
him or against a partnership of
which he was a partner at the time
when he was a partner or at any
time within 2 years from the date
he ceased to be a partner?

(b) Whether at any time during the No No No No No

last 10 years, an application or
a petition under any law of any
jurisdiction was filed against an
entity (not being a partnership)
of which he was a director or
an equivalent person or a key
executive, at the time when he was
a director or an equivalent person
or a key executive of that entity or
at any time within 2 years from the
date he ceased to be a director
or an equivalent person or a key
executive of that entity, for the
winding up or dissolution of that
entity or, where that entity is the
trustee of a business trust, that
business trust, on the ground
of insolvency?

(c) Whether there is any unsatisfied No No No No No

judgment against him?

(d) Whether he has ever been No No No No No

convicted of any offence, in
Singapore or elsewhere, involving
fraud or dishonesty which is
punishable with imprisonment,
or has been the subject of any
criminal proceedings (including
any pending criminal proceedings
of which he is aware) for
such purpose?

(e) Whether he has ever been No No No No No

convicted of any offence, in
Singapore or elsewhere, involving
a breach of any law or regulatory
requirement that relates to the
securities or futures industry
in Singapore or elsewhere, or has
been the subject of any criminal
proceedings (including any
pending criminal proceedings
of which he is aware) for
such breach?

(f) Whether at any time during the No No No No No

last 10 years, judgment has been
entered against him in any civil
proceedings in Singapore or
elsewhere involving a breach of
any law or regulatory requirement
that relates to the securities or
futures industry in Singapore or
elsewhere, or a finding of fraud,
misrepresentation or dishonesty
on his part, or he has been the
subject of any civil proceedings
(including any pending civil
proceedings of which he is aware)
involving an allegation of fraud,
misrepresentation or dishonesty
on his part?

Olam Group Limited Annual Report 2023 283

Addendum to the Annual Report 2023

Dr Joerg Mr Shuji Mr Yuji

Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

(g) Whether he has ever been No No No No No

convicted in Singapore or
elsewhere of any offence in
connection with the formation
or management of any entity
or business trust?

(h) Whether he has ever been No No No No No

disqualified from acting as a
director or an equivalent person
of any entity (including the trustee
of a business trust), or from taking
part directly or indirectly in the
management of any entity or
business trust?

(i) Whether he has ever been the No No No No No

subject of any order, judgment
or ruling of any court, tribunal or
governmental body, permanently
or temporarily enjoining him from
engaging in any type of business
practice or activity?

(j) Whether he has ever, to his

knowledge, been concerned
with the management or conduct,
in Singapore or elsewhere,
of the affairs of:
(i) any corporation which has Yes, please refer No No No No
been investigated for a to Appendix 1
breach of any law or
regulatory requirement
governing corporations in
Singapore or elsewhere; or

(ii) any entity (not being a Yes, please refer No No No No

corporation) which has been to Appendix 1
investigated for a breach
of any law or regulatory
requirement governing such
entities in Singapore or
elsewhere; or

(iii) any business trust which Yes, please refer No No No No

has been investigated for to Appendix 1
a breach of any law or
regulatory requirement
governing business trusts in
Singapore or elsewhere; or

(iv) any entity or business trust Yes, please refer No No No No

which has been investigated to Appendix 1
for a breach of any law or
regulatory requirement that
relates to the securities or
futures industry in Singapore
or elsewhere,
in connection with any matter
occurring or arising during that
period when he was so concerned
with the entity or business trust?

(k) Whether he has been the subject No No No No No

of any current or past investigation
or disciplinary proceedings, or
has been reprimanded or issued
any warning, by the Monetary
Authority of Singapore or any other
regulatory authority, exchange,
professional body or government
agency, whether in Singapore
or elsewhere?

284 olamgroup.com
 Financial
report

Dr Joerg Mr Shuji Mr Yuji

Name of Director Mr Lim Ah Doo Dr Ajai Puri Wolfgang Wolle Kobayashi Tsushima

Any prior Yes. Yes. Yes. Yes. Yes.

experience as a
Mr Lim Ah Doo is Dr Puri was a director Dr Wolle was a director Mr Kobayashi has been Mr Tsushima has been
director of an
presently a director on the board of Olam on the board of Olam a director on the board recently appointed as a
issuer listed on the
on the board of GDS International Limited International Limited of Olam Group Limited director on the board of
Exchange?
Holdings Ltd, GP from 1 September 2019 from 1 September 2019 since 5 May 2023. Olam Group Limited on
If yes, please Industries Ltd and to 15 March 2022 to 15 March 2022 4 March 2024.
provide details of Singapore Technologies (being the date that (being the date that
prior experience. Engineering Ltd and Olam Group Limited Olam Group Limited
was a director on the took over the listing took over the listing
board of ARA Trust entity status on the entity status on the
Management (Cache) Exchange from Olam Exchange from Olam
Limited (formerly known International Limited International Limited
as ARA-CWT Trust as part of the Group’s as part of the Group’s
Management (Cache) re-organisation) and re-organisation) and
Limited – trustee has been a director has been a director
manager of Cache on the board of Olam on the board of Olam
Logistics Trust) and Group Limited since Group Limited since
SembCorp Marine Ltd.. 15 March 2022. 15 March 2022.
Mr Lim Ah Doo was
also a director on the
board of Olam
International Limited
from 1 November 2016
to 15 March 2022
(being the date that
Olam Group Limited
took over the listing
entity status on the
Exchange from Olam
International Limited as
part of the Group’s
re-organisation) and
has been a director on
the board of Olam
Group Limited since
15 March 2022.

If no, please state N.A. N.A. N.A. Mr Kobayashi has Mr Tsushima was
if the director has attended training recently appointed on
attended or will be on the roles and 4 March 2024. He will
attending training responsibilities of be attending the
on the roles and a director of a listed training on the roles
responsibilities of issuer as prescribed by and responsibilities of
a director of a the Exchange. a director of a listed
listed issuer as issuer (including
As part of the new
prescribed by the sustainability training)
director induction
Exchange. as prescribed by the
program, Mr Kobayashi
Exchange.
Please provide was briefed on the
details of relevant legal, regulatory
experience and and governance
the nominating requirements as well as
committee’s the duties of a director.
reasons for not
requiring the
director to
undergo training
as prescribed by
the Exchange
(if applicable).

Olam Group Limited Annual Report 2023 285

Appendix 1 to the Addendum

Appendix 1 to the Addendum

Mr Lim Ah Doo
Linc Energy Ltd
Mr Lim was an independent and non-executive director of Linc Energy Ltd (“Linc”) from 23 November 2013 to 23 June 2015.
Linc is a global oil and gas company with a broad portfolio of oil, gas and coal assets. Linc announced on 15 April 2016 that it
entered into voluntary administration and appointed administrators working with the company’s management team to
understand the options available which might potentially include a restructure of the company.
Linc subsequently entered into liquidation on 23 May 2016.

PT lndosat
Mr Lim was non-executive Independent Commissioner of PT lndosat Tbk (“PT lndosat”) from December 2002 to August 2008,
and Chairman of Audit Committee from June 2004 to June 2008. In November 2007, PT lndosat along with 6 other Indonesian
telecommunications companies were investigated by Indonesia’s anticompetition, KKPU, on allegations of price-fixing of
charges for short text messages and breach of Anti-monopoly Law of Indonesia. PT lndosat and 8 other companies were also
investigated by KKPU of concern of breaches of Article 27(a) of the Anti-monopoly law of Indonesia. There was no finding of
breach of law by PT lndosat at the time Mr Lim left PT lndosat.

Asian Agri
Mr Lim was president of RGM International Pte Ltd (“RGMI”) from October 2003 to June 2007, and non-executive vice
chairman of RGMI from June 2007 to November 2008. Mr Lim was also acting president of AAA Oils and Fats Pte Ltd (“AAA”)
from June 2007 to November 2007 and non-executive deputy chairman of AAA from November 2007 to November 2008.
RGMI provides strategy services and support to a global group of independent companies (the “RGM Group”) operating in
the resources development sector. Each business group within the RGM group operates independently with its own holding
company and directors responsible for the operation of that business group. Asian Agri is a member of the RGM group and AAA
is a member of Asian Agri.
Certain Indonesian companies of Asian Agri operating in Indonesia were investigated by the tax authorities of Indonesia in
November 2006 for alleged non-payment of certain tax. The tax authorities of Indonesia had not confirmed any findings of
breach of law at the time when Mr Lim left the RGM Group in November 2008. Mr Lim was not a member of the board, nor was
he concerned with the management of the companies under investigation.

286 olamgroup.com
Proxy form IMPORTANT:
1. Shareholders who wish to exercise their voting rights at the AGM may:
(a) (where the Shareholder is an individual) attend and vote “live” at the physical meeting or the virtual meeting of the AGM;
(b) (where the Shareholder is an individual or a corporate) appoint proxy(ies) other than the Chairman of the Meeting
(“Third Party Proxy(ies)”) to attend and vote “live” at the physical meeting or the virtual meeting of the AGM on
their behalf; and
(c) (where the Shareholder is an individual or a corporate) appoint the Chairman of the AGM as proxy to vote on their behalf.
Olam Group Limited 2. Shareholders who wish to appoint Third Party Proxy(ies) to vote “live” at the AGM on their behalf must do both of the
following by Monday, 22 April 2024 at 2.00 p.m.: (a) complete and submit this Proxy Form in accordance with
the instructions in the Notes below; and (b) if the proxy(ies) are to attend the virtual meeting of the AGM, pre-register
(Company Registration No. 202180000W) the proxy(ies) at https://www.olamgroup.com/investors/shareholder-centre/annual-general-meeting-2024.html
(Incorporated in The Republic of Singapore) (the “Pre-Registration Page”).
3. For investors holding shares of Olam Group Limited through Relevant Intermediaries and CPF/SRS Investors (both as defined
in the Notice of AGM), this Proxy Form is not valid for use and shall be ineffective for all intents and purposes if used or
purported to be used by them. Such investors who wish to exercise their voting rights should approach their Relevant
Intermediary/CPF Agent Bank/SRS operator as soon as possible. CPF/SRS investors should approach their respective CPF
Agent Bank or SRS operator at least seven (7) working days before the AGM (i.e. by Tuesday, 16 April 2024 at 2.00 p.m.).

(Please see notes overleaf before completing this Form)

*I/We, (insert Full Name and NRIC no./Passport no./UEN no.)

Of (Address)

being a *member/members of Olam Group Limited (the “Company”), hereby appoint

Name Email Address NRIC/Passport No. Number of Shares /

Proportion of Shareholding (%)

*and/or
Name Email Address NRIC/Passport No. Number of Shares /
Proportion of Shareholding (%)

or failing whom, the Chairman of the Third Annual General Meeting of the Company (“AGM” or “Meeting”), as *my/our
proxy/proxies to vote for *me/us on *my/our behalf at the Meeting to be convened and held at Heliconia Junior Ballroom,
Level 3, Marina Bay Sands Convention Centre, 10 Bayfront Avenue, Singapore 018956 and by way of electronic means on
Thursday, 25 April 2024 at 2.00 p.m. (Singapore time), and at any adjournment thereof. *I/We direct *my/our proxy/
proxies to vote for or against or to abstain from voting on the Resolutions proposed at the Meeting as indicated hereunder.
If no specific direction as to voting or abstention is given or in the event of any other matter arising at the Meeting and at
any adjournment thereof, the proxy/proxies may vote or abstain from voting at his/her own discretion.

No. Resolutions relating to: For Against Abstain

Ordinary Business
1. Directors’ Statement and the Audited Financial Statements of the Company for the
financial year ended 31 December 2023 together with the Auditors’ Report thereon
2. Declaration of second and final dividend of 4.0 cents per share, tax exempt (one-tier) for
the financial year ended 31 December 2023
3. Re-election of Mr Lim Ah Doo as a Director retiring under Regulation 107
4. Re-election of Dr Ajai Puri as a Director retiring under Regulation 107
5. Re-election of Dr Joerg Wolle as a Director retiring under Regulation 107
6. Re-election of Mr Shuji Kobayashi as a Director retiring under Regulation 113
7. Re-election of Mr Yuji Tsushima as a Director retiring under Regulation 113
8. Approval of payment of Directors’ fees of up to S$2,700,000 for the financial year ending
31 December 2024
9. Re-appointment of Messrs Ernst & Young LLP as the auditors of the Company and to
authorise the Directors to fix their remuneration
Special Business
10. General authority to issue Shares
11. Renewal of the Share Buyback Mandate
12. Authority to issue Shares under the OG Share Grant Plan

(If you wish your proxy/proxies to exercise all your votes “For” or “Against” or to “Abstain” from the relevant Resolution,
please tick within the box provided. Alternatively, if you wish your proxy/proxies to exercise your votes both “For”,
“Against” or to “Abstain” from the relevant Resolution, please indicate the number of Shares in the boxes provided.)

Dated this day of 2024 Total number of Shares Held

Signature of Shareholder(s) or Common Seal of Corporate Shareholder

* Delete where inapplicable

IMPORTANT: Please read the notes overleaf before completing this Proxy Form.
Personal Data Privacy:
By submitting an instrument appointing a proxy, the member accepts and agrees to the personal data privacy terms set out
in the Notice of Annual General Meeting dated 9 April 2024.

Notes:
1. Please insert the total number of Shares held by you in the Depository Register (as defined in Section 81SF of the
Securities and Futures Act 2001 of Singapore). If no number is inserted, the instrument appointing a proxy shall be
deemed to relate to all the Shares held by you.

2. A member of the Company who wishes to vote on the Resolutions tabled at the Meeting may:

(i) (where the member is an individual) attend and vote “live” at the physical meeting or the virtual meeting of the AGM;

(ii) (where the member is an individual or corporate) appoint Third Party Proxy(ies) to attend and vote “live” at the
physical meeting or the virtual meeting of the AGM on their behalf; and

(iii) (where the member is an individual or a corporate) appoint the Chairman of the Meeting as proxy to vote on their behalf.

3. Members who wish to appoint Third Party Proxy(ies) to vote “live” at the Meeting on their behalf must do both of
the following by Monday, 22 April 2024 at 2.00 p.m.: (i) complete and submit this Proxy Form in accordance with
the instructions below; and (ii) if the proxy(ies) plan to attend the virtual meeting of the AGM, pre-register the
proxy(ies) at https://www.olamgroup.com/investors/shareholder-centre/annual-general-meeting-2024.html
(the “Pre-Registration Page”).

4. In the Proxy Form, a member of the Company should specifically direct the proxy on how he/she is to vote for,
vote against, or to abstain from voting on, the resolutions. If no specific direction as to voting is given, the proxy
(including the Chairman of the Meeting) may vote or abstain from voting at his/her discretion.

5. (i) A member of the Company (who is not a Relevant Intermediary) entitled to attend and vote at a meeting of the
Company is entitled to appoint one (1) or two (2) proxies to attend and vote on his/her/its behalf. A proxy need
not be a member of the Company. Any appointment of a proxy by a member attending the Meeting shall be null
and void and such proxy shall not be entitled to attend and vote at the Meeting. Where a member (other than
a Relevant Intermediary) appoints two (2) proxies, the appointments shall be invalid unless he/she/it specifies the
number of Shares to be represented by each proxy.

(ii) A member who is a Relevant Intermediary may appoint more than two (2) proxies to attend and vote at the
Meeting, but each proxy must be appointed to exercise the rights attached to a different Share or Shares held by
such member. Where such member appoints two (2) or more proxies, the appointments shall be invalid unless
such member specifies the number of Shares to be represented by each proxy.

6. The instrument appointing a proxy must be deposited (i) by post to the office of the Share Registrar of the Company
at 1 Harbourfront Avenue #14-07 Keppel Bay Tower, Singapore 098632, or (ii) by electronic mail to email address
[email protected] enclosing a clear scanned completed and signed Proxy Form in pdf.

In addition, a Shareholder wishing to appoint proxy(ies) to attend the Virtual Meeting, may appoint proxy(ies) via
electronic submission of the e-Proxy Form at the Pre-Registration Page. The Proxy Form must be received by the
Company not less than 72 hours before the time appointed for the Meeting. Members are strongly encouraged to
submit completed Proxy Forms via email or, where applicable, submit the e-Proxy Form via the Pre-Registration Page.

7. (i) Where the instrument appointing a proxy, submitted by post or by electronic mail, is executed by an individual,
it must be signed under hand by the appointor or of his/her attorney duly authorised in writing, if the instrument
is delivered personally or sent by post. Where the e-Proxy Form is submitted via electronic submission at the
Pre-Registration Page, it must be authorised by the appointor via the online process set out in the Pre-Registration Page.

(ii) Where the instrument appointing a proxy, submitted by post or by electronic mail, is executed by a corporation or
limited liability partnership, it must be either given under its common seal (if any) or signed under hand on its behalf
by an attorney or a duly authorised officer of the corporation or limited liability partnership, if the instrument is delivered
personally or sent by post. Where the e-Proxy Form is submitted via electronic submission at the Pre-Registration
Page, it must be authorised by the appointor via the online process set out in the Pre-Registration Page.

(iii) Where the instrument appointing a proxy is signed or authorised on behalf of the appointor by an attorney,
the letter or the power of attorney or a duly certified true copy thereof must (failing previous registration with
the Company) be lodged with the instrument of proxy in accordance with paragraph 6 above.

General:
The Company shall be entitled to reject the instrument appointing a proxy if it is incomplete, unsigned, improperly completed
or illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified
in the instrument appointing a proxy. The Company shall not be responsible to confirm nor be liable for the rejection of any
incomplete or invalid proxy instrument. In addition, the Company shall reject any instrument appointing a proxy lodged if the
member, being the appointor, is not shown to have Shares entered against his/her/its name in the Depository Register as at
72 hours before the time appointed for holding the AGM, as certified by The Central Depository (Pte) Limited to the Company.
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