Olam Group Limited

and its subsidiary companies

Condensed Interim Financial Statements

For the six months ended 30 June 2022
Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

Table of Contents

Page

A. Condensed interim consolidated statement of profit and loss and other

comprehensive income 1

B. Condensed interim statements of financial position 3

C. Condensed interim statements of changes in equity 4

D. Condensed interim consolidated statement of cash flows 7

E. Notes to the condensed interim consolidated financial statements 8

F. Other information required by Listing Rule Appendix 7.2 21

Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

A. Condensed interim consolidated statement of profit and loss and other comprehensive income

Profit & Loss Statement – Half Year FY 2022

Group

(in S$’000) Note 6 Months Ended

%
30-Jun-22 30-Jun-21
change
Sale of goods & services 3 28,446,861 22,833,445 24.6
Other income 4 35,755 37,592 (4.9)
Cost of goods sold (26,398,188) (21,145,806) 24.8
Net loss from changes in fair value
(24,712) (6,303) 292.1
of biological assets
Depreciation & amortisation (346,232) (293,877) 17.8
Other expenses 4 (961,653) (804,282) 19.6
Finance income 49,305 42,180 16.9
Finance costs (327,253) (239,359) 36.7
Share of results from joint ventures and associates 16,629 5,692 192.1

Profit before tax 490,512 429,282 14.3

Income tax expense 5 (96,052) (46,612) 106.1

Profit for the period 394,460 382,670 3.1

Attributable to:
Owners of the Company 429,116 421,485 1.8
Non-controlling interests (34,656) (38,815) (10.7)
394,460 382,670 3.1

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

A. Condensed interim consolidated statement of profit and loss and other comprehensive income
(cont’d)

Statement of Comprehensive Income – Half Year FY 2022

Group
(in S$’000) 6 Months Ended
30-Jun-22 30-Jun-21
Profit for the period 394,460 382,670

Other Comprehensive Income:

Items that may be reclassified subsequently to
profit or loss:
Net gain on fair value changes during the period 787 31,296
Recognised in the profit and loss account on
(20,923) (20,657)
occurrence of hedged transactions
Foreign currency translation adjustment 259,732 111,478
Share of other comprehensive income of joint
(31,627) (17,187)
ventures and associates
207,969 104,930

Items that will not be reclassified subsequently to

profit or loss:
Net fair value gain on equity instrument at fair value
678 2,087
through other comprehensive income
Other comprehensive income for the period, net
208,647 107,017
of tax
Total comprehensive income for the period 603,107 489,687

Attributable to:
Owners of the Company 613,982 521,187
Non-controlling interests (10,875) (31,500)
603,107 489,687

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

B. Condensed interim statements of financial position as at 30 June 2022

Group Company
(in S$’000) Note
30-Jun-22 31-Dec-21 30-Jun-22 31-Dec-21
Non-current assets
Property, plant and equipment 9 6,080,914 5,867,075 - -
Right-of-use assets 882,538 782,659 - -
Intangible assets 8 2,608,783 2,578,287 - -
Biological assets 438,957 489,013 - -
Investment in subsidiary companies - - 6,480,528 -
Interests in joint ventures and associates 560,604 572,292 - -
Long term investment - 31,335 - -
Deferred tax assets 272,668 266,766 - -
Other non-current assets 21,883 25,711 - -
10,866,347 10,613,138 6,480,528 -
Current assets
Amounts due from subsidiary companies (net) - - 857,140 -
Trade receivables 3,819,778 2,441,350 - -
Margin accounts with brokers - 555,260 - -
Inventories 9,861,246 8,857,220 - -
Advance payments to suppliers 597,834 543,456 - -
Cash and short-term fixed deposits 6,395,327 4,317,519 - -*
Derivative financial instruments 4,680,034 3,594,791 - -
Other current assets 1,087,809 1,001,662 - -
26,442,028 21,311,258 857,140 -
Non-current assets held for sale 58,685 136,316 - -
26,500,713 21,447,574 857,140 -
Current liabilities
Trade payables and accruals (6,736,138) (4,679,678) - -
Margin accounts with brokers (11,429) - - -
Borrowings 10 (9,844,331) (6,937,615) - -
Lease liabilities 10 (175,632) (138,015) - -
Derivative financial instruments (2,616,946) (2,335,888) - -
Provision for taxation (251,303) (180,089) - -
Other current liabilities (886,019) (740,013) (827) -
(20,521,798) (15,011,298) (827) -

Net current assets 5,978,915 6,436,276 856,313 -

Non-current liabilities
Deferred tax liabilities (549,709) (583,261) - -
Borrowings 10 (8,134,827) (8,794,760) (69,525) -
Lease liabilities 10 (885,532) (839,800) - -
Other non-current liabilities (30,833) (52,916) - -
(9,600,901) (10,270,737) (69,525) -

Net assets 7,244,361 6,778,677 7,267,316 -

Equity attributable to owners of the Company

Share capital 6,233,595 4,339,545 6,233,595 -*
Treasury shares - (114,446) - -
Shares held in Trust (88,173) - - -
Capital securities 905,971 906,789 905,971 -
Reserves 196,395 1,639,341 127,750 -
Equity and reserves 7,247,788 6,771,229 7,267,316 -
Non-controlling interests (3,427) 7,448 - -
7,244,361 6,778,677 7,267,316 -
*Amount is less than S$ 1,000

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 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

C. Condensed interim statements of changes in equity

Attributable to owners of the Company
Share Treasury Shares held Capital Capital Foreign Fair value Share-based Revenue Total Total Non- Total
6 Months capital shares in Trust securities reserves currency adjustment compensation reserves reserves Controlling Equity
Group translation reserves reserves Interests
reserves
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'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 01 January 2022 - - - - - - - - (4,479) (4,479) (4,479) - (4,479)
(Note 14)
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 period - - - - - - - - 429,116 429,116 429,116 (34,656) 394,460
Other comprehensive income
Net gain on fair value changes during the financial - - - - - - 1,465 - - 1,465 1,465 - 1,465
period
Recognised in the profit and loss account on - - - - - - (20,923) - - (20,923) (20,923) - (20,923)
occurrence of hedged transactions
Reclassification of fair value adjustment reserve to - - - - - - 410,321 - (410,321) - - - -
revenue reserve on derecognition of long term
investment
Foreign currency translation adjustment - (5,050) - - - 241,001 - - - 241,001 235,951 23,781 259,732
Share of other comprehensive income of joint - - - - - (31,627) - - - (31,627) (31,627) - (31,627)
ventures and associates
Other comprehensive income for the financial - (5,050) - - - 209,374 390,863 - (410,321) 189,916 184,866 23,781 208,647
period, net of tax
Total comprehensive income for the period - (5,050) - - - 209,374 390,863 - 18,795 619,032 613,982 (10,875) 603,107
Contributions by and distributions to owners
Increase in share capital on account of scheme of 1,867,487 - - - (1,867,487) - - - - (1,867,487) - - -
arrangement1 (Note 1)
Issue of treasury shares on exercise of share 26,564 30,727 - - - - - (30,727) - (30,727) 26,564 - 26,564
options
Issue of treasury shares for restricted share awards2 - 88,173 (88,173) - - - - - - - - - -
Cancellation of treasury shares (1) 1 - - - - - - - - - - -
Issue of treasury shares for directors fees - 595 - - - - - - - - 595 - 595
Share-based expense - - - - - - - 37,300 - 37,300 37,300 - 37,300
Dividends on ordinary shares - - - - - - - - (172,524) (172,524) (172,524) - (172,524)
Accrued capital securities distribution - - - 24,061 - - - - (24,061) (24,061) - - -
Payment of capital securities distribution - - - (24,879) - - - - - - (24,879) - (24,879)
Total contributions by and distributions to 1,894,050 119,496 (88,173) (818) (1,867,487) - - 6,573 (196,585) (2,057,499) (132,944) - (132,944)
owners
Total transactions with owners in their capacity 1,894,050 119,496 (88,173) (818) (1,867,487) - - 6,573 (196,585) (2,057,499) (132,944) - (132,944)
as owners
At 30 June 2022 6,233,595 - (88,173) 905,971 (1,608,195) (1,105,295) (48,392) 150,695 2,807,582 196,395 7,247,788 (3,427) 7,244,361

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 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

C. Condensed interim statements of changes in equity (cont’d)

Attributable to owners of the Company

Share Treasury Capital Capital Foreign Fair value Share-based Revenue Total Total Non- Total
6 Months capital shares securities reserves currency adjustment compensation reserves reserves Controlling Equity
Group translation reserves reserves Interests
reserves
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
At 1 January 2021 3,748,994 (140,172) 1,045,732 259,292 (1,259,303) (462,923) 141,955 2,628,884 1,307,905 5,962,459 73,520 6,035,979
Profit for the period - - - - - - - 421,485 421,485 421,485 (38,815) 382,670
Other comprehensive income
Net gain on fair value changes during the
- - - - - 33,383 - - 33,383 33,383 - 33,383
financial period
Recognised in the profit and loss account on
- - - - - (20,657) - - (20,657) (20,657) - (20,657)
occurrence of hedged transactions
Foreign currency translation adjustment - - - - 104,163 - - - 104,163 104,163 7,315 111,478
Share of other comprehensive income of joint
- - - - (17,187) - - - (17,187) (17,187) - (17,187)
ventures and associates
Other comprehensive income for the financial - - - - 86,976 12,726 - - 99,702 99,702 7,315 107,017
period, net of tax
Total comprehensive income for the period - - - - 86,976 12,726 - 421,485 521,187 521,187 (31,500) 489,687
Contributions by and distributions to owners
Issue of treasury shares for performance share
- 25,611 - - - - (25,611) - (25,611) - - -
awards and restricted share awards
Issue of capital securities, net of transaction cost - - 398,156 - - - - - - 398,156 - 398,156
Share-based expense - - - - - - 15,445 - 15,445 15,445 - 15,445
Dividends on ordinary shares - - - - - - - (128,181) (128,181) (128,181) - (128,181)
Accrued capital securities distribution - - 34,282 - - - - (34,282) (34,282) - - -
Payment of capital securities distribution - - (25,416) - - - - - - (25,416) - (25,416)
Total contributions by and distributions to - 25,611 407,022 - - - (10,166) (162,463) (172,629) 260,004 - 260,004
owners
Total transactions with owners in their - 25,611 407,022 - - - (10,166) (162,463) (172,629) 260,004 - 260,004
capacity as owners
At 30 June 2021 3,748,994 (114,561) 1,452,754 259,292 (1,172,327) (450,197) 131,789 2,887,906 1,656,463 6,743,650 42,020 6,785,670

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 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

C. Condensed interim statements of changes in equity (cont’d)

Attributable to owners of the Company

Share Capital Foreign Revenue Total Total
6 Months capital securities currency reserves reserves
Company translation
reserves
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
At 1 January 2022 -* - - - -* -*
Loss for the period - - - (9,216) (9,216) (9,216)
Other comprehensive income
Foreign currency translation adjustment - - 149,959 - 149,959 149,959
Other comprehensive income for the financial - - 149,959 - 149,959 149,959
period, net of tax
Total comprehensive income for the period - - 149,959 (9,216) 140,743 140,743
Contributions by and distributions to owners
Increase in share capital on account of scheme of 6,233,595 - - - - 6,233,595
arrangement (Note 1)
Transfer of capital securities, net of transaction
- 892,978 - - - 892,978
costs3
Accrued capital securities distribution - 12,993 - (12,993) (12,993) -
Total contributions by and distributions to
6,233,595 905,971 - (12,993) (12,993) 7,126,573
owners
Total transactions with owners in their capacity
6,233,595 905,971 - (12,993) (12,993) 7,126,573
as owners
At 30 June 2022 6,233,595 905,971 149,959 (22,209) 127,750 7,267,316
*Amount is less than S$ 1,000

Notes
1. The Scheme of Arrangement became effective on 15 March 2022 with the concurrent listing and delisting of Olam Group Limited (“OGL”) and Olam International
Limited (“OIL”) respectively. The share capital of OGL was therefore recorded at the level of the net asset value of OIL, with no change in the overall equity
value.
2. An Employee Benefits Trust (‘Trust’) was set up prior to the Scheme Effective Date to hold and manage the unvested shares under the RSA under the OIL Share
Grant Plan. The Trustee will hold such OG Shares and, as and when, OFIGL Shares received as a distribution in respect of the OG Shares. The shares will be
released by the Trustee to the respective RSA holders in accordance with the original vesting schedule and conditions of the RSA.
3. Pursuant to the Scheme of Arrangement, OGL has substituted OIL as the issuer and principal debtor of the 2017 Perpetual Securities and the 2021 Perpetual
Securities on 23 March 2022.

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

D. Condensed interim consolidated statement of cash flows

Group
(in S$'000) 6 Months Ended
30-Jun-22 30-Jun-21
Cash flow from operating activities
Profit before taxation 490,512 429,282
Adjustments for:
Allowance for doubtful debts 17,287 12,120
Amortisation of intangible assets, depreciation of property, plant and
346,232 293,877
equipment and depreciation of right-of-use assets
Cost of share-based payment 37,300 15,445
Fair value of biological assets 24,712 6,303
Gain on disposal of subsidiaries, net - (4,870)
Loss on disposal/partial divestment of joint ventures and associate - 679
Gain on disposal of property, plant and equipment and intangible assets (2,329) (7,110)
Interest income (49,305) (42,180)
Interest expense 327,253 239,359
Inventories written down, net 15,966 (10,376)
Net monetary gain arising from hyperinflationary economies
(40,253) -
(Note 4)
Share of results from joint ventures and associates (16,629) (5,692)
Operating cash flow before reinvestment in working capital 1,150,746 926,837
Increase in inventories (752,691) (456,175)
Increase in receivables and other current assets (1,977,770) (1,439,144)
Increase in advance payments to suppliers (37,425) (17,589)
Decrease/(Increase) in margin account with brokers 570,796 (385,102)
Increase in payables and other current liabilities 1,958,893 2,652,985
Cash flow generated from operations 912,549 1,281,812
Interest income received 49,305 42,180
Interest expense paid (303,343) (234,478)
Tax paid (114,179) (94,503)
Net cash flow generated from operating activities 544,332 995,011
Cash flow from investing activities
Proceeds from disposal of property, plant and equipment 6,243 47,931
Purchase of property, plant and equipment (369,051) (335,502)
Purchase of intangible assets (10,939) (3,819)
Acquisition of subsidiaries, net of cash acquired - (1,192,831)
Proceeds from sale of long term investment 31,530 -
Dividends received from associate 4,591 785
Proceeds from disposal/partial divestment of joint ventures and associate - 77,778
Proceeds from divestment of subsidiaries - 12,381
Advance received against sale of stake in associates 259,021 -
Net cash flow used in investing activities (78,605) (1,393,277)
Cash flow from financing activities
Dividends paid on ordinary shares by the Company (172,524) (128,181)
Proceeds from borrowings, net 1,687,625 719,821
Repayment of lease liabilities (89,163) (58,063)
Proceeds from issuance of shares on exercise of share options 26,564 -
Proceeds from issue of capital securities, net of transaction costs - 398,156
Payment of capital securities distribution (24,879) (25,416)
Net cash flow generated from financing activities 1,427,623 906,317

Net effect of exchange rate changes on cash and cash equivalents 117,123 36,315

Net increase in cash and cash equivalents 2,010,473 544,366

Cash and cash equivalents at the beginning of the period 4,160,849 2,849,894
Cash and cash equivalents* at the end of the period 6,171,322 3,394,260

*Cash and cash equivalents include cash and bank balances, fixed deposits less overdrafts and deposits committed.

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements

1. Corporate information

Olam International Limited (“OIL”) had on 20 January 2020 announced that it would pursue a group
reorganisation exercise of its portfolio of businesses into two new operating groups, Olam Food
Ingredients (“ofi”) and Olam Global Agri (“Olam Agri”), with the remaining business housed under
Remaining Olam Group. This re-organisation was initiated to simplify OIL’s portfolio, sharpen its focus,
and unlock long-term value via a proposed carve-out, IPO and demerger of the two operating groups
(the “Proposed Transactions”).

On 14 December 2021, OIL announced that it is proposing to seek the approval of its shareholders to
carry out the Proposed Transactions in relation to the proposed restructuring of OIL by way of a scheme
of arrangement under Section 210 of the Companies Act 1967 (the “Scheme”). As part of the Scheme,
Olam Group Limited (“OGL”, “Company”, collectively together with subsidiaries called as “Group”),
which was incorporated on 26 August 2021, will succeed OIL as the new public limited company trading
on Singapore Exchange Securities Trading Limited (“SGX-ST”) and the concurrent delisting of OIL.

The Scheme became effective on 15 March 2022.

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 sourcing, processing, packaging, and
merchandising of agricultural products.

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. Basis of preparation

The condensed interim financial statements for the six months ended 30 June 2022 have been prepared
in accordance with SFRS(I) 1-34 Interim Financial Reporting issued by the Accounting Standards
Council Singapore. The condensed interim financial statements do not include all the information
required for a complete set of financial statements. However, selected explanatory notes are included
to explain events and transactions that are significant to an understanding of the changes in the Group’s
financial position and performance of the Group since the last annual financial statements for the year
ended 31 December 2021.

The accounting policies adopted are consistent with those of the previous financial year which were
prepared in accordance with SFRS(I)s, except for the adoption of new and amended standards as set
out in Note 2.1.

The Group’s condensed interim financial statements are presented in Singapore Dollars ($ or SGD) as
the Company is domiciled in Singapore and all values in the tables are rounded to the nearest thousand
($’000) as indicated.

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.

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

2. Basis of preparation (cont’d)

2.1 New and amended standards adopted by the Group

A number of amendments to Standards have become applicable for the current reporting period. The
Group did not have to change its accounting policies or make retrospective adjustments as a result of
adopting those standards.

2.2 Use of judgements and estimates

In preparing the condensed interim financial statements, management has made judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group’s accounting policies and the
key sources of estimation uncertainty were the same as those that applied to the consolidated financial
statements as at and for the year ended 31 December 2021.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.

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 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

3. Segmental Information

3.1 Reportable segments

The Group is organised into the following three business segments:

• Olam Food Ingredients (“ofi”)

• Olam Agri (“OA”): and
• Remaining Olam Group

Management monitors the operating results of its business units separately for the purpose of making
decisions about resource allocation and performance assessment.

Olam Food Ingredients Olam Agri

Remaining Olam Group Consolidated
(ofi) (OA)
6 Months Ended 6 Months Ended
6 Months Ended 6 Months Ended
30-Jun-2021 30-Jun-2021
30-Jun-22 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-22 30-Jun-21
Restated Restated
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Segment revenue:
Sales to external customers 8,114,494 6,645,324 19,556,254 15,491,163 776,113 696,958 28,446,861 22,833,445
Segment result (EBIT) 264,975 300,466 608,856 407,536 (71,787) (66,369) 802,044 641,633
Finance costs (327,253) (239,359)
Finance income 49,305 42,180
Exceptional items (Gross of interest
(12,691) (1,182) (1,315) - (19,578) (13,990) (33,584) (15,172)
& tax)
Profit before taxation 490,512 429,282
Taxation expense (96,052) (46,612)
Profit for the period 394,460 382,670

Olam Food Ingredients Olam Agri

Remaining Olam Group Consolidated
(ofi) (OA)
31-Dec-2021 31-Dec-2021
30-Jun-22 30-Jun-22 31-Dec-21 30-Jun-22 30-Jun-22 31-Dec-21
Restated Restated
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Segment assets 15,181,642 14,090,921 10,562,212 8,558,196 3,786,834 3,632,286 29,530,688 26,281,403
Unallocated assets 7,836,372 5,779,309
Segment liabilities 3,529,202 3,329,391 5,506,777 3,316,166 328,534 370,009 9,364,513 7,015,566
Unallocated liabilities 20,758,186 18,266,469

Post H1 2021, certain businesses were transferred between business segments. The Coffee plantation
business was transferred from Remaining Olam Group to ofi and ofi’s Russian operations (primarily
comprising the Rusmolco dairy farming operations) were transferred from ofi to Remaining Olam Group.
The results for ofi and Remaining Olam Group for H1 2022 and H1 2021 as well as their financial position
as on 30 Jun 2022 and 31 Dec 2021 are presented after incorporating these changes.

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

3. Segmental Information (cont’d)

3.2 Disaggregation of revenue

Group Group
6 Months Ended 6 Months Ended
Types of goods or services
30-Jun-22 30-Jun-21
S$'000 S$'000
Sale of goods 27,672,031 22,437,618
Sale of services 774,830 395,827
Total revenue from contracts with
28,446,861 22,833,445
customers

Group Group
6 Months Ended 6 Months Ended
Timing of revenue recognition
30-Jun-22 30-Jun-21
S$'000 S$'000
Goods transferred at point in time 27,672,031 22,437,618
Services transferred at point in time 771,585 390,557
Others 3,245 5,270
Total revenue from contracts with
28,446,861 22,833,445
customers

Disaggregation of revenue from contracts with customers by geographical segments:

Group Group
6 Months Ended 6 Months Ended
Geographical markets
30-Jun-22 30-Jun-21
S$'000 S$'000
Asia, Middle East and Australia 21,984,957 16,371,066
Africa 5,817,911 4,860,619
Europe 5,228,625 4,706,431
Americas 5,510,648 4,726,168
Eliminations (10,095,280) (7,830,839)
Total revenue from contracts with
28,446,861 22,833,445
customers

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

4. Profit before taxation

Other income and expenses stated after (charging)/crediting the following: -

Group
6 Months Ended
30-Jun-22 30-Jun-21
S$’000 S$’000
Other income:
Gain on disposal of subsidiaries, net - 4,971
Commissions and claims, sale of packaging materials,
35,755 32,621
sales of scrap and others

Other expenses:
Loss on disposal of joint venture and associate - (679)
Gain on disposal of property, plant and equipment and
2,329 7,110
intangible assets, net
Re-organization cost (12,879) -
Net monetary gain arising from hyperinflationary
40,253 -
economies (Note 14)
Employee benefits expenses (599,026) (518,541)
(Loss) / Gain on foreign exchange, net (4,513) 46,535
Bank charges (47,132) (42,588)
Travelling expenses (29,034) (17,769)
Impairment loss on financial assets - Trade receivables (9,933) (10,024)
Allowance for doubtful debts - Advance payments to
(7,354) (2,096)
suppliers

5. Taxation

The Group calculates the period income tax expense using the tax rate that would be applicable to the
expected total annual earnings. The major components of income tax expense in the condensed interim
consolidated statement of profit and loss are:

Group
6 Months Ended
30-Jun-22 30-Jun-21
S$’000 S$’000

Current income tax:-

Singapore 17,445 6,140
Foreign 125,942 61,692
Under provision in respect of prior years 781 106
144,168 67,938
Deferred income tax:-
Singapore 971 (1,011)
Foreign (49,087) (20,315)
Income tax expense 96,052 46,612

- 12 -
 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

6. Financial assets and financial liabilities

Set out below is an overview of the financial assets and financial liabilities of the Group as at 30 June
2022 and 31 December 2021:

30-Jun-22 31-Dec-21
Fair value Fair value
through other Fair value through other Fair value
Amortised comprehensive through profit Amortised comprehensive through profit
Group cost income or loss cost income or loss
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Financial assets:
Loans to associates 11,578 - - 18,490 - -
Long term investment - - - - 31,335 -
Trade receivables 3,508,675 - - 2,195,067 - -
Margin accounts with brokers - - - 555,260 - -
Other current assets 534,004 - - 406,356 - -
Other non current assets 21,883 - - 25,711 - -
Cash and short-term fixed deposits 6,395,327 - - 4,317,519 - -
Derivative financial instruments - 16,824 4,663,210 - 7,964 3,586,827
10,471,467 16,824 4,663,210 7,518,403 39,299 3,586,827

Financial liabilities:
Trade payables and accruals 6,454,649 - - 4,478,528 - -
Margin accounts with brokers 11,429 - - - -
Other current liabilities 869,706 - - 723,562 - -
Other non current liabilities 30,833 - - 52,916 - -
Borrowings 17,979,158 - - 15,732,375 - -
Lease liabilities 1,061,164 - - 977,815 - -
Derivative financial instruments - 8,520 2,608,426 - 32 2,335,856
26,406,939 8,520 2,608,426 21,965,196 32 2,335,856

30-Jun-22 31-Dec-21
Fair value Fair value
through other Fair value through other Fair value
Amortised comprehensive through profit Amortised comprehensive through profit
Company cost income or loss cost income or loss
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Financial liabilities:
Other current liabilities 827 - - - - -
Borrowings 69,525 - - - - -
70,352 - - - - -

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Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

7. Fair values of assets and liabilities

7.1. Fair value measurement

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.
The following table presents the assets and liabilities carried at fair value by level of fair value hierarchy:

Group - 30 June 2022

Quoted prices in Significant
Significant other
active markets for unobservable Total
observable inputs
identical instruments inputs
(Level 1) (Level 2) (Level 3)
S$’000 S$’000 S$’000 S$’000

Financial assets:
Derivatives financial instruments
- Commodity contracts 735,509 2,923,639 58,845 3,717,993
- Foreign exchange contracts - fair value hedge - 920,197 - 920,197
- Foreign exchange contracts - Cash flow hedge - 15,794 - 15,794
- Cross currency interest rate swap- fair value hedge - 25,020 - 25,020
- Interest rate swap - cash flow hedge - 1,030 - 1,030
735,509 3,885,680 58,845 4,680,034

Financial liabilities:
Derivatives financial instruments
- Commodity contracts 324,734 1,085,857 30,953 1,441,544
- Foreign exchange contracts - fair value hedge - 983,114 - 983,114
- Foreign exchange contracts - cash flow hedge - 8,520 - 8,520
- Cross currency interest rate swap - fair value hedge - 183,768 - 183,768
324,734 2,261,259 30,953 2,616,946

Non-financial assets:
Biological assets - - 438,957 438,957
Inventories - 5,177,090 442,728 5,619,818

- 14 -
Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

7. Fair values of assets and liabilities (cont’d)

7.1. Fair value measurement (cont’d)

Group - 31 December 2021
Quoted prices in Significant
Significant other
active markets for unobservable Total
observable inputs
identical instruments inputs
(Level 1) (Level 2) (Level 3)
S$’000 S$’000 S$’000 S$’000

Financial assets:
Long term investment - - 31,335 31,335
Derivatives financial instruments
- Commodity contracts 187,358 2,781,999 72,797 3,042,154
- Foreign exchange contracts - fair value hedge - 535,989 - 535,989
- Foreign exchange contracts - Cash flow hedge - 7,732 - 7,732
- Cross currency interest rate swap - fair value hedge - 8,684 - 8,684
- Interest rate swap - cash flow hedge - 232 - 232
187,358 3,334,636 104,132 3,626,126

Financial liabilities:
Derivatives financial instruments
- Commodity contracts 661,141 1,028,953 30,803 1,720,897
- Foreign exchange contracts - fair value hedge - 558,189 - 558,189
- Cross currency interest rate swap - fair value hedge - 56,770 - 56,770
- Interest rate swap - cash flow hedge - 32 - 32
661,141 1,643,944 30,803 2,335,888

Non- Financial Assets

Biological assets - - 489,013 489,013
Inventories - 5,648,598 443,172 6,091,770

7.2. Level 3 fair value measurements:

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, based on significant unobservable inputs (Level 3): -

Commodity
Commodity Long term
contracts - Inventories Bio Assets
contracts - assets investments
liabilities
S$’000 S$’000 S$’000 S$’000 S$’000

At 1 January 2021 75,317 (23,545) 230,789 24,342 473,165

Total gain/(loss) for the year
Included in profit or loss (2,520) (7,258) 44,798 - 69,229
Included in other comprehensive income - - - 6,993 -
Growth / Birth (net of harvest/sale) - - - - (53,381)
Purchases and sales, net - - 167,585 - -
At 31 December 2021 and 1 January 2022 72,797 (30,803) 443,172 31,335 489,013
Total gain/(loss) for the year
Included in profit or loss (13,952) (150) 25,203 - (24,712)
Included in other comprehensive income - - - 678 -
Growth / Birth (net of harvest/sale) - - - - (25,344)
Purchases and sales, net - - (25,647) (32,013) -
At 30 June 2022 58,845 (30,953) 442,728 - 438,957

- 15 -
Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

7. Fair values of assets and liabilities (cont’d)

7.2. Level 3 fair value measurements (cont’d):

In the period ended 30 June 2022 and 31 December 2021, there were no transfers between different
levels of the fair value hierarchy.

There were no changes in valuation techniques during the six months ended 30 June 2022 and the
year ended 31 December 2021.

The financial instruments categorized under Level 3 of the fair value hierarchy are generally sensitive
to the various unobservable inputs. There were no changes in the unobservable inputs used in valuation
during the six months ended 30 June 2022 and the year ended 31 December 2021. A significant
movement of each input would result in significant change to the fair value of the respective
asset/liability.

7.3. Fair value of financial instruments by classes that are not carried at fair value and whose
carrying amounts are reasonable approximation of fair value

Cash and short-term deposits, trade receivables, other current assets, margin accounts with
brokers, amounts due from/(to) subsidiary companies, 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.
Loans to associates, bank loans and term loans from banks
The carrying amount of loans 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.

- 16 -
 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

8. Intangible assets

Customer Brand and Water Concession

Goodwill Software Others Total
Group relationships trademark Rights Rights
S$’000 S$’000 S$’000 S$’000
S$’000 S$’000 S$’000 S$’000
As at 31 December 2021
Cost 1,357,492 629,490 524,843 150,610 10,270 91,709 164,148 2,928,562
Accumulated amortisation and
(15,386) (122,741) (23,877) (61,908) - (60,811) (65,552) (350,275)
impairment
Net carrying value 1,342,106 506,749 500,966 88,702 10,270 30,898 98,596 2,578,287

As at 30 June 2022
Opening net carrying value 1,342,106 506,749 500,966 88,702 10,270 30,898 98,596 2,578,287
Additions - - - 7,234 - - 3,705 10,939
Reclassifications - - - 15,168 - - (15,168) -
Amortisation for the period - (18,579) - (9,078) - (2,130) (3,249) (33,036)
Others 30,623 13,654 15,402 (2,725) (204) (7,006) 2,849 52,593
Closing net carrying value 1,372,729 501,824 516,368 99,301 10,066 21,762 86,733 2,608,783

The Group performed its annual impairment test at year end and when circumstances indicated that the
carrying value may be impaired. The Group’s impairment test for goodwill and intangible assets with
indefinite lives is based on value-in-use calculations. The key assumptions used to determine the
recoverable amount for the different cash generating units were disclosed in the annual consolidated
financial statements for the year ended 31 December 2021.

9. Property, plant and equipment

During the six months ended 30 June 2022, the Group acquired assets amounting to S$ 369,051,000 (30
June 2021: S$ 335,943,000) and disposed of assets amounting to S$ 5,270,000 (30 June 2021:S$
53,921,000).

- 17 -
 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

10. Borrowings and lease liabilities

Amounts repayable in one year or less or on demand

30-Jun-22 31-Dec-21
Secured Unsecured Secured Unsecured
(in S$'000) (in S$'000) (in S$'000) (in S$'000)
Overdrafts - 224,005 - 155,739
Loans 221,895 8,414,925 48,328 5,485,073
Medium term notes - 983,506 - 1,248,475
Lease liabilities - 175,632 - 138,015
Total 221,895 9,798,068 48,328 7,027,302

Amounts repayable after one year

30-Jun-22 31-Dec-21
Secured Unsecured Secured Unsecured
(in S$'000) (in S$'000) (in S$'000) (in S$'000)
Medium / long term loans 149,956 6,201,282 102,969 6,940,373
Medium term notes - 1,783,589 - 1,751,418
Lease liabilities - 885,532 - 839,800
Total 149,956 8,870,403 102,969 9,531,591

Bank and term loans are secured over certain assets of subsidiaries.

11. Share capital and treasury shares

30-Jun-22 31-Dec-21
Issued, fully paid shares :
Balance number of shares as at the beginning of
1 -
period
Issue of shares for cash - 1
Issue of shares to shareholders on account of
3,842,625,184 -
scheme of arrangement
Total no. of shares outstanding as at the end of
3,842,625,185 1
period

- 18 -
 Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

12. Net asset value

Net asset value (for the Issuer and Group) per ordinary share based on the total number of issued
shares of the issuer at the end of the:
(a) current financial period reported on; and
(b) immediately preceding financial year.
p

Group
(In cents per share) As at As at
30-Jun-22 31-Dec-21
Net asset value (NAV) per ordinary share based
188.62 180.45
on issued share capital as at end of the period

Net asset value (excluding capital securities) for the Group per ordinary share based on issued share
capital as at 30 June 2022 was 165.04 cents per share (31 December 2021: 156.29 cents per share).

13. Reported earnings per ordinary share

Earnings per ordinary share of the Group for the current financial period reported and for the
corresponding period of the immediately preceding financial year, after deducting any provision for
preference dividends

Group
Reported EPS 6 Months Ended
30-Jun-22 30-Jun-21
(a) Based on weighted average no. of shares
10.49 11.86
(cents/share)
(b) Based on fully diluted basis (cents/share)
10.35 11.68

Weighted average no. of shares applicable to

3,761,544,051 3,266,025,787
basic earnings per share
Weighted average no. of shares based on fully
3,812,415,045 3,314,867,559
diluted basis

- 19 -
Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

E. Notes to the condensed interim consolidated financial statements (cont’d)

14. Classification of Turkey as a Hyper-inflationary Economy

The Turkey economy was designated as hyperinflationary from 1 Jan 2022. As a result, application of
IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ has been applied to all Olam entities whose
functional currency is the Turkish Lira. The group’s consolidated financial statements include the results
and financial position of its Turkish operations restated to the measuring unit current at the end of the
period, with hyperinflationary gains and losses in respect of monetary items being reported under the
head “Other expenses”. Comparative amounts presented in the consolidated financial statements were
not restated in line with IAS 29 requirement. Difference between restatement of opening balances of
equity and the non-monetary items were recognised in opening revenue reserves.

The main effects on the Group consolidated financial statements for H1 2022 are as follows:

1. Opening revenue reserves decreased by S$ 4,479,000 reflecting the impact of adjusting the
opening balances of equity and the non-monetary items from the date of their initial recognition to
1st January 2022 for the effect of inflation.

2. Net impact on the profit for the period is a gain of S$ 5,985,000. Below table shows the breakup of
respective line items in the Profit and loss statement:

Total
Particulars
S$'000
Sale of goods & services 1,750
Other income (9)
Cost of goods sold (33,023)
Depreciation & amortisation (351)
Other expenses 40,030
Finance costs (534)
Profit before tax 7,863
Income tax expense (1,878)
Profit for the period 5,985

15. Subsequent events

(a) On 04 July 2022, ofi completed the acquisition of Märsch Importhandels GmbH ("Märsch"), one of
Europe’s leading private label nuts manufacturers, with manufacturing facilities in Germany at an
enterprise value of EUR 93.0 million. The acquisition complements ofi’s current footprint in private
label and manufacturing operations in the US and Asia and provides ofi’s nuts business with a solid
platform for an accelerated entry into Europe.

(b) On 05 July 2022, ofi completed the acquisition of Club Coffee L.P. (“Club Coffee”), one of Canada’s
largest roasters and packaging solutions providers to the ‘At Home’ segment, serving private label
customers and retail brands. ofi acquired Club Coffee at an enterprise value of CA$ 150.0 million,
subject to post-closing adjustments. The acquisition is aligned with ofi’s growth strategy in which
the private label and co-manufactured channel is an attractive, high value and growing part of its
portfolio.

(c) On 12 July 2022, the Group redeemed and cancelled all outstanding 5.5% S$350 million perpetual
securities.

- 20 -
Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

F. OTHER INFORMATION

1. Review

The condensed consolidated statement of financial position of Olam Group Limited and its subsidiaries
as at 30 June 2022 and the related condensed consolidated profit and loss and other comprehensive
income, condensed consolidated statement of changes in equity and condensed consolidated
statement of cash flows for the six-month period then ended and certain explanatory notes have not
been audited or reviewed.

2. Review of performance of the Group

Please refer to the Management Discussion and Analysis (“MDA”), lodged on SGXNET along with the
Financial Results statement, for a review of financial and operational performance.

3. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any
variance between it and the actual results.

There was no forecast made by the Company.

4. A commentary at the date of the announcement of the significant trends and competitive
conditions of the industry in which the Group operates and any known factors or events that
may affect the Group in the next reporting period and the next 12 months.

Please refer to the MDA for a review of financial and operational performance.

5. Dividend
(a) Current Financial Period Reported on 30 June 2022.
Any dividend recommended for the current financial period reported on?
The Board had declared a one-tier tax exempt interim dividend of 4.0 cents per ordinary share
for the period ended 30 June 2022.

(b) Corresponding Period of the immediately preceding Financial Year.

Any dividend declared for the corresponding period of the immediately preceding financial year?

Not applicable.

(c) Whether the dividend is before tax, net of tax or tax exempt. If before tax or net of tax, state
the tax rate and the country where the dividend is derived. (If the dividend is not taxable in
the hands of shareholders, this must be stated).

The dividend paid is tax exempt in the hands of shareholders.

(d) Date Payable

29 August 2022

- 21 -
Olam Group Limited
Condensed interim financial statements
For the six months ended 30 June 2022

F. OTHER INFORMATION (cont’d)

5. Dividend (cont’d)

(e) Record date

NOTICE IS HEREBY GIVEN that the Share Transfer Books and Register of Members of OLAM
GROUP LIMITED (the “Company”) will be closed at 5.00 pm on 22 August 2022 for the preparation of
interim dividend warrants.

Duly completed registerable transfers received by the Company's Share Registrar, Boardroom
Corporate & Advisory Services (Pte) Ltd, at 1 Harbourfront Avenue Keppel Bay Tower #14-07
Singapore 098632 up to 5.00 p.m. on 22 August 2022 will be registered to determine shareholders
entitlements to the said dividend.

Members whose Securities Accounts with The Central Depository Pte. Ltd. are credited with shares at
5.00 p.m. on 22 August 2022 will be entitled to the proposed interim dividend. Payment of the interim
dividend will be made on 29 August 2022.

6. Interested party transactions

The Company has not obtained a general mandate from shareholders for Interested Party
Transactions.

7. Confirmation that the issuer has procured undertaking from all its directors and executive
officers (in the format set out in Appendix 7.7) under Rule 720(1)

The Company has procured undertakings from all its directors and executive officers in compliance
with Listing Rule 720(1).

Confirmation of the Board

We refer to the requirement under Rule 705(5) of the Listing Manual.

We hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of
Directors of the Company which may render the unaudited interim financial results for period ended 30
June 2022 to be false or misleading in any material aspects.

On behalf of the Board of Directors

Lim Ah Doo Sunny George Verghese

Chairman Co-founder & Group CEO
BY ORDER OF THE BOARD

Sunny George Verghese

Co-founder & Group CEO

12th August 2022

- 22 -