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    15nov2017 NewsRelease 3QFY2017

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    Olam International reported a 17.5% increase in quarterly profit and 26.7% rise in year-to-date profit due to strong volume growth and improved performance across most business segments. For the third quarter, profit rose to $24.1 million from $20.5 million previously. For the first nine months, profit increased to $315.6 million from $249.1 million a year ago. The company delivered strong free cash flow of $1.1 billion for the first nine months due to higher operating cash flows and lower capital expenditures. While near-term uncertainties remain, Olam is confident in its ability to generate long-term value for stakeholders.

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    15nov2017 NewsRelease 3QFY2017

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    ashokdb2k
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    Olam International reported a 17.5% increase in quarterly profit and 26.7% rise in year-to-date profit due to strong volume growth and improved performance across most business segments. For the third quarter, profit rose to $24.1 million from $20.5 million previously. For the first nine months, profit increased to $315.6 million from $249.1 million a year ago. The company delivered strong free cash flow of $1.1 billion for the first nine months due to higher operating cash flows and lower capital expenditures. While near-term uncertainties remain, Olam is confident in its ability to generate long-term value for stakeholders.

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    15Nov2017_NewsRelease_3QFY2017

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    Olam International reported a 17.5% increase in quarterly profit and 26.7% rise in year-to-date profit due to strong volume growth and improved performance across most business segments. For the third quarter, profit rose to $24.1 million from $20.5 million previously. For the first nine months, profit increased to $315.6 million from $249.1 million a year ago. The company delivered strong free cash flow of $1.1 billion for the first nine months due to higher operating cash flows and lower capital expenditures. While near-term uncertainties remain, Olam is confident in its ability to generate long-term value for stakeholders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views5 pages

    15nov2017 NewsRelease 3QFY2017

    Uploaded by

    ashokdb2k
    Olam International reported a 17.5% increase in quarterly profit and 26.7% rise in year-to-date profit due to strong volume growth and improved performance across most business segments. For the third quarter, profit rose to $24.1 million from $20.5 million previously. For the first nine months, profit increased to $315.6 million from $249.1 million a year ago. The company delivered strong free cash flow of $1.1 billion for the first nine months due to higher operating cash flows and lower capital expenditures. While near-term uncertainties remain, Olam is confident in its ability to generate long-term value for stakeholders.

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    © All Rights Reserved
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    Download as pdf or txt
    of 5

    News Release

    Singapore, November 15, 2017

    Olam International reports 17.5% PATMI growth in Q3 2017 on strong volumes

    HIGHLIGHTS

    • Significantly improved financial and operating performance:


    - Q3 2017: PATMI up 17.5% to S$24.1 million; Operational PATMI up 17.1% to S$24.0
    million on strong volume growth and improved operational performance across most
    segments

    - 9M 2017: PATMI up 26.7% to S$315.6 million; Operational PATMI up 23.1% to


    S$321.8 million

    • Delivered strong free cash flow in 9M 2017:


    - Free Cash Flow to Firm: S$1.1 billion; Free Cash Flow to Equity: S$713.2 million

    • Strengthened balance sheet (Sep 30, 2017: 1.82x; Dec 31, 2016: 1.99x) and liquidity
    position to pursue profitable growth

    S$ million 9M 2017 9M 2016 % Change Q3 2017 Q3 2016 % Change

    Volume ('000 MT) 14,738.6 10,205.5 44.4 5,798.8 3,757.9 54.3


    Revenue 19,037.3 14,480.7 31.5 6,712.6 4,738.0 41.7
    EBITDA 1,015.1 853.9 18.9 243.0 205.5 18.2
    PAT 295.5 236.0 25.2 25.4 15.0 68.8
    PATMI 315.6 249.1 26.7 24.1 20.5 17.5
    Operational PATMI 321.8 261.4 23.1 24.0 20.5 17.1

    MANAGEMENT COMMENTS

    Co-Founder & Group CEO Sunny Verghese said:

    “These results show we are delivering consistently strong operating and financial
    performance, with our Q3 results building on the positive trend of our first half. Execution of
    our strategy has significantly improved earnings growth and generated strong free cash flow.

    “This performance is clear evidence that our strategy is working. We believe we have struck
    the right balance between driving for growth while managing risk and cash flow. We have
    focused on a number of key elements to achieve these results – selective growth in

    Page 1 of 5
    News Release

    Singapore, November 15, 2017

    prioritised platforms, turnarounds in underperforming areas and nurturing gestating assets to


    reach full potential, bearing in mind our priorities to achieve improved returns and positive
    free cash flow. And importantly, we have achieved this while keeping sustainability at the
    core of everything we do.

    “While we are very encouraged by our good performance to date, we are cautious about
    near-term market uncertainties in some agri-commodities which may impact us. However,
    overall, we are confident of our ability to generate long-term value for our stakeholders.”

    Executive Director and Group COO, A. Shekhar said:

    “Broad-based performance contributed to the strong results led by Edible Nuts, Grains and
    Animal Feed, Dairy, Cotton, and Ag Logistics & Infrastructure.

    “We have significantly improved overall free cash flow by growing operating cash flows,
    reducing Capex spending and undertaking other working capital optimisation initiatives. We
    were also aided to some extent by lower commodity prices.

    “On debt funding, we have further diversified our sources of financing through maiden
    issuances of Samurai loan and European syndication in Q3 2017. Our balance sheet has
    been further strengthened through the exercise of warrants by warrantholders, increasing
    our equity capital by US$321.8 million1 this year. The remaining warrants, which are in the
    money if exercised before the expiry date (January 29, 2018), will result in an additional
    equity infusion of US$164.9 million.”

    FINANCIAL RESULTS

    Q3 2017
    - PATMI (Profit After Tax and Minority Interest) increased 17.5% YoY (year-on-year) to
    S$24.1 million (Q3 2016: S$20.5 million) on strong volume growth and improved
    operational performance across most business segments.
    - Operational PATMI, which excludes exceptional items, grew 17.1% YoY to S$24.0
    million (Q3 2016: S$20.5 million).
    - EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) grew 18.2% to
    S$243.0 million (Q3 2016: S$205.5 million) on growth in the Edible Nuts, Spices &

    1
    As of November 6, 2017

    Page 2 of 5
    News Release

    Singapore, November 15, 2017

    Vegetable Ingredients, Food Staples & Packaged Foods and Industrial Raw Materials,
    Ag Logistics & Infrastructure segments.

    9M 2017
    - PATMI increased 26.7% YoY to S$315.6 million (9M 2016: S$249.1 million) as
    improved operational performance offset higher depreciation and amortisation expenses
    and finance costs from strategic acquisitions and investments.
    - Operational PATMI grew 23.1% at S$321.8 million (9M 2016: S$261.4 million).
    - EBITDA registered 18.9% growth to S$1.0 billion (9M 2016: S$853.9 million).

    Cash flow, financing, balance sheet, and returns to shareholders


    - Generated strong positive Free Cash Flow to Firm (FCFF) of S$1.1 billion for 9M 2017
    (9M 2016: -S$150.5 million) and Free Cash Flow to Equity (FCFE) of S$713.2 million
    (9M 2016: -S$466.2 million) on improved net operating cash flows and lower capital
    expenditure.
    - Net gearing as at September 30, 2017 was lower at 1.82 times compared to 1.99 times
    as at December 31, 2016.

    9M 2017 SEGMENTAL PERFORMANCE

    Edible Nuts, Spices & Vegetable Ingredients

    - Revenue grew 19.4% to S$3.3 billion, mainly on higher volumes from spices and
    sesame and higher almond and cashew prices compared with 9M 2016.
    - EBITDA grew 38.9% to S$339.1 million as stronger contribution from almond, cashew,
    peanuts and sesame offset lower contribution from tomato processing.

    Confectionery & Beverage Ingredients

    - Revenue increased 12.4% to S$6.2 billion on higher volumes overall, offset by lower
    coffee and cocoa prices.
    - EBITDA declined 6.5% to S$248.8 million. Higher earnings from Coffee was offset by
    lower contribution from Cocoa, which continued to experience headwinds and margin
    pressures for both the cocoa bean and products trading business, even as its
    processing business performed well.

    Page 3 of 5
    News Release

    Singapore, November 15, 2017

    Food Staples & Packaged Foods

    - Revenue increased 56.0% to S$6.4 billion mainly on higher trading volumes in Grains
    and Edible Oils.
    - EBITDA grew 29.1% to S$291.2 million, driven by better results from wheat milling,
    Dairy, Sugar refining and early trading results from its new animal feed and protein
    businesses.

    Industrial Raw Materials, Ag Logistics & Infrastructure

    - Revenue was up 49.1% to S$3.2 billion on higher Cotton volumes and prices.
    - EBITDA improved 18.9% to S$139.1 million with higher contribution from Cotton and Ag
    Logistics and Infrastructure, compensating for the underperformance in Wood Products.

    Commodity Financial Services


    - The segment saw a S$3.1 million loss in EBITDA due to limited trading opportunities
    during Q3 2017.

    OUTLOOK

    While expecting macro-economic uncertainties to continue through the year, Olam believes
    its diversified and well-balanced portfolio provides a resilient platform to navigate the
    challenges in both the global economy and commodity markets.

    Olam will continue to execute on its strategic plan and pursue growth in its prioritised
    platforms. It remains focused on turning around underperforming businesses, ensuring
    gestating businesses reach full potential and delivering positive free cash flow.

    Issued on behalf of Olam International Limited by: WATATAWA Consulting, 77 Robinson


    Road, Robinson 77 #33-00, Singapore 068896

    For further information, please contact:


    Olam Investor Relations
    Aditya Renjen, Vice President, +65 66031104, +65 96570339, [email protected]
    Chow Hung Hoeng, General Manager, +65 63179471, +65 98346335,
    [email protected]

    Page 4 of 5
    News Release

    Singapore, November 15, 2017

    WATATAWA Consulting
    Simon Pangrazio, Managing Partner, +65 90603513, [email protected]
    Josephine Chew, Managing Director, +65 90610353, [email protected]

    Notes to Editors

    1. This release should be read and understood only in conjunction with the full text of Olam
    International Limited’s Third Quarter and Nine Months 2017 Financial Statements and
    Management Discussion and Analysis lodged on SGXNET on November 15, 2017.

    2. Olam will host a webcast on November 15, 2017, at 10.30 am SGT to discuss the financial
    results and provide a company update. To access the webcast or download the presentation
    materials, go to http://olamgroup.com/resources/#Webcasts.

    About Olam International Limited

    Olam International is a leading agri-business operating across the value chain in 70


    countries, supplying various products across 18 platforms to 23,000 customers worldwide.
    From a direct sourcing and processing presence in most major producing countries, Olam
    has built a global leadership position in many of its businesses. Headquartered in Singapore
    and listed on the SGX-ST on February 11, 2005, Olam currently ranks among the top 30
    largest primary listed companies in Singapore in terms of market capitalisation. In 2016,
    Fortune magazine recognised Olam at #23 in its ‘Change the World’ list.
    More information on Olam can be found at www.olamgroup.com.
    Olam is located at 7 Straits View, Marina One East Tower #20-01, Singapore 018936.
    Telephone: +65 63394100, Facsimile: +65 63399755.

    Page 5 of 5

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