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The following part is the chairman's letter in the company's annual report.

Improved Financial Performance

Despite another year of geo-political tensions, continuing volatility and macro-economic uncertainty, Olam successfully concluded the first year of the 2019-2024 Strategic Plan with significantly improved financial performance across the board.

EBITDA grew 25.6% to S$1.55 billion, compared to S$1.24 billion in 2018, on higher contributions from all segments except Industrial Raw Materials, Infrastructure and Logistics. Most of the increase came from Confectionery and Beverage Ingredients,

and Food Staples and Packaged Foods, notably Cocoa and Grains and Animal Feed & Protein businesses. Operational PATMI was S$498.2 million, up 43.7% on the prior years S$346.6 million. The Company divested de-prioritised businesses and related assets, and saw S$488.1 million of cash release out of the targeted US$1.6 billion for the 2019-2024 cycle. The Board of Directors has recommended a final dividend of 4.5 cents per share for a total dividend of 8.0 cents per share for 2019, an increase compared to 7.5 cents per share in 2018.

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Olam International Limited Annual Report 2019 Strong Strategic Plan progress

Capitalising on key trends driven by consumers for healthier, sustainable and natural products, as well as ever advancing technologies for production and purchasing behaviour, the refreshed 2019 to 2024 Strategic Plan announced in early 2019 got off to a strong start. Deliverables are being met or even exceeded thanks to the focus and dedication of the Olam team.

The first strategic pathway of streamlining, focusing and strengthening the portfolio saw the Company reduce S$437.6 million of invested capital. S$1.1 billion was invested in strengthening the continuing businesses against the US$3.5 billion allocated for investment over the 6-year period.

The Companys second pathway was to improve margins through capital and cost productivity. In this respect, savings of some US$70 million were achieved and gearing is well within the net debt-to-equity target of 2.0 at 1.38 times. A significant element of these successes has been the focus on leveraging key enablers of operational excellence, sustainability, digitalisation and leadership and talent. Innovative financing strategies demonstrate just one way of how Olam is embedding these enablers into the strategy with a second sustainability-linked loan and a world first digital loan.

Re-organising Olam to unlock value

As stated at the start of 2019 with the launch of the refreshed strategy, the Board continued to explore options to maximise the Companys long-term value, leading to the January 2020 announcement of the re-organisation of Olam into two new operating groups: Olam Food Ingredients (OFI), Olam Global Agri (OGA) with the stewardship of Olam International (OIL). The re-organisation decision within the first year of a six-year agenda was not a change in strategy but rather a recognition of the opportunity to create further value for our shareholders through potential carve-outs and capital raising options, including IPOs for OFI and OGA.

In line with the re-organisation, a Board Steering Committee was established with a project team comprising 12 work streams to develop strategies for OFI, OGA and OIL which build on the current Strategic Plan. Executive Director A. Shekhar has been appointed as CEO of OFI while Sunny will be CEO of OGA while continuing as the Group CEO.

Harnessing expertise and dedication

The Board will draw on the relevant experience and expertise of our members which has been demonstrated throughout their tenure. It is at this point we thank in particular, Mr. Jean-Paul Pinard and Mr. Yutaka Kyoya, who will retire as Directors at the close of the forthcoming Annual General Meeting. Mr. Kyoya is also the Executive Vice President and Group CEO of the Consumer Industry Group of Mitsubishi Corporation one of our major shareholders. We have gained considerably from their insights and counsel. I extend a special thanks to Mr. Pinard, who with more than 11 years of service to the Board and as Chair of the Corporate Responsibility and Sustainability Board Committee, has helped Olam become the sustainability leader it is today in the global food, agri and ingredients space.

I also take this opportunity to welcome three new board directors who were appointed in September 2019 as part of our annual succession planning: Dr. Joerg Wolle, Dr. Ajai Puri and Mr. Nagi Hamiyeh. All have distinguished backgrounds which will complement, augment and strengthen the Boards overall skills set and stewardship effectiveness. I am confident they will add value and contribute to the long-term growth of Olam as well as continue to support high standards of governance and accountability to our shareholders.

In 2019, Olam turned 30 and so did Olam Nigeria where Olam had its beginnings in 1989. A number of countries and businesses also marked their own milestones. Both Cte dIvoire and Ghana celebrated 25 years, and in November, the Board was delighted to share in the anniversary celebrations with the Ghana team, meeting many of the employees, farmers and communities who have contributed to this success. These are all our stakeholders whom we wish to share our success and create value for as Olam celebrates its 30 years. As the world now faces the unprecedented challenges of COVID-19, the strength of all our stakeholder relationships across the continents will be ever more important.

Finally, I take this opportunity to thank all of our shareholders for their continued support throughout 2019. But most of all I extend the Boards appreciation to the many Olam teams around the world whose dedication and efforts have led to such a positive start to this new Strategic Plan and new chapter for Olam.