Our Strategy

    In January 2019 we launched our new Strategy, to enhance our leadership position and capture value from key emerging consumer trends.

    Following successful progress against the Plan targets, in January 2020, we announced a re-organisation of Olam to unlock long-term value.

    To read more about the two operating groups - ofi and Olam Global Agri and the role of Olam International as parent, steward and accelerator click below. 

    In Order To Execute This Plan, We Developed Four Key Strategic Pathways

    1a. Streamline, Focus and Strengthen Our Portfolio

    Planned investment of US$3.5 billion (including US$1 billion maintenance capital expenditure) in 12 prioritised high potential growth, proven businesses – nuts, cocoa, grains and animal feed, coffee, cotton, spices, edible oils, infrastructure and logistics, dairy, rice, packaged foods and commodity financial services.

    1b. Strengthen, Streamline and Focus the Business Portfolio

    Release of US$1.6 billion by de-prioritising and divesting four businesses – sugar, rubber, wood products, fertiliser – and other non-core businesses and assets that no longer align with our strategic priorities. The divestments will be completed in a responsible and orderly manner during this plan period.

    2. Improved Margins

    Drive margin improvement by enhancing cost competitiveness and optimising capital efficiency and productivity.

    3. Access to New Revenue Streams

    Generate additional revenue streams by offering differentiated products/services such as AtSource, risk management solutions, value-added services, ingredients and product innovation; and from both existing and new channels such as co-manufacturing, the food service sector and e-commerce for small and medium-sized customers.

    4. New Engines for Growth

    Explore partnerships and investments in new engines for growth by assessing opportunities to deliver to the consumers and farmers of tomorrow.

     

    Supported by Four Key Enablers

    Operational Excellence

    We achieve operational excellence by tracking metrics that matter, using digital dashboards and performance scorecards, embedding discipline and focusing on continuous improvement.

    Sustainability

    We continue to keep sustainability at the heart of the business and re-generate food and farming landscapes while capitalising on changing consumer preferences and trends.

    Digitalisation

    We strive to lead the industry’s digital transformation and disruption by identifying, validating and deploying digital initiatives to capture and create value. 

    Leadership and Talent

    Our colleagues are our true competitive advantage, they are the architects of our future.

    

    We Will Judge Our Success Against Four Financial Goals

    Return on Equity

    Return on Equity

    A minimum Return on Equity of 12 per cent from 2021 onwards.

    EBITDA

    EBITDA

    Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to Invested Capital ratio of at least 13 per cent from 2021.

    Free Cash Flow

    Free Cash Flow

    Positive Free Cash Flow to Equity from 2020 onwards.

    Debt to Equity

    Debt to Equity

    Net Debt to Equity ratio not exceeding two times between 2019 and 2024.

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