Jul2017 4 PDF

Strategy Report
Annual Report 2016

Introduction
Contents
1
8
Group CEO perspective
Highlights
ABOUT OLAM
Established in 1989, Olam traded cashews fromNigeria to
14 Business model
16 Economic India. Today Olam is a leading agri-business operating from
38 Social seed to shelf, supplying food and industrial raw materials
64 Environment toover 22,900 customers worldwide. Ourteamof 69,8001
86 General information employees across 70 countries has built leadership positions
in several of our 18 platforms, including cocoa, coffee,
cashew, rice and cotton. We source from 4.33 million farmers
About this report and their communities. We are listed on the Singapore
Exchange (SGX) and are among the top 30 companies
This Annual Report has 3 chapters. These can bymarket capitalisation.
be read independently; however, for the

purpose of compliance they are intended
tobeviewed as a single document.
OUR PURPOSE
Growing Responsibly describes how we do business.
Weensure protable growth is achieved in an ethical,
socially responsible and environmentally sustainable manner.
Strategy Report This is integral to our business model.
Strategy Report
Annual Report 2016
This chapter offers narrative about

our performance, strategy and
market factors. Information has
been grouped into 3 sections,
OUR GOVERNING
i)economic, ii)social and
iii) environment.
It can be read independently
OBJECTIVE
To maximise long-term intrinsic value for our
asanExecutive Summary continuing shareholders.
oraspart of the full report.
Governance Report
Annual Report 2016
Financial Report
Annual Report 2016
OUR VISION
To be the most differentiated and valuable global
agri-business by 2040.
Governance Financial
Report Report
These are available to download at olamgroup.com/investor-relations

along with additional information or can be requested inprint
from ir@olamnet.com.
Cover image
Harvesting wheat for our dairy herd, Russia. 1
Employees includes full-time, seasonal, contract and temporary workers.
PROGRESS IN A YEAR OF
UNPRECEDENTED GLOBAL CHANGE
2016 was an exceptional year. The ascent of populism, waning of the forces of
globalisation, continued sub-par global growth, monetary policy exhaustion and
thedigital revolution presented many challenges for businesses to navigate.
These challenges underscored the need for businesses to stay the course with a
clear and focused strategy, while at the same time acting on their capacity to
rapidly adapt and remain relevant in times of such unprecedented and unexpected
change. I believe Olam achieved this difficult and delicate balance in 2016.
We responded to these challenges by sharpening our focus and strengthening our
efforts to accelerate the delivery of value to our shareholders. We made specic
investment choices and capital allocation decisions in 2016 that will shape our
future and ensure our continuing success. To this end, we continued expansion of
our operational footprint further growing our upstream plantation investments
inalmonds, coffee, palm and rubber and making new plantation investments in
adjacent businesses such as pistachios, walnuts and black pepper.
p16
ECONOMIC
CONTENTS:
18 Group COOs review
24 Edible Nuts, Spices and Vegetable Ingredients
26 Confectionery and Beverage Ingredients
28 Food Staples and Packaged Foods
30 Industrial Raw Materials, Ag Logistics and Infrastructure
31 Commodity Financial Services
32 Value chain review and analysis
36 Principal risks and uncertainties
p38
SOCIAL
We rely on our people to grow our business
responsibly. Our operations impact communities
around the world. We strive to ensure that
impact is positive for the long-term.
CONTENTS:
42 Livelihoods
48 Labour
56 Food security and nutrition
60 Food safety and quality
Sunny Verghese
Co-Founder and Group CEO
p64
ENVIRONMENT
Perhaps more than any other sector, agriculture faces
huge environmental challenges that are interlocked and
complex. At a global scale, our operations and those of
our suppliers are at risk of climate change, poor soil
quality, and water scarcity, which in turn impact on global
food security.
CONTENTS:
68 Land
74 Water
80 Climate change
olamgroup.com 1
Overview
Our theme, Maximising We made a signicant commitment

toenter the animal feeds business in
Cocoa, Coffee, Grains, Spices and
Vegetable Ingredients (SVI) and Cotton.
Value and Purpose, Africa. We successfully integrated
transformational and strategic
In this cluster, we continued to build
leadership positions in these priority
reects the need to acquisitions such as the erstwhile businesses. During 2016, 4 of our 6
ADMCocoa business, McCleskey Mills, business units in this cluster Edible
balancebeing both Brooks Peanut Company and the Nuts, Coffee, Cocoa and Grains
avalue creating wheatmilling and pasta assets from
theBUAGroup during the course of
performed strongly from a nancial
standpoint while at the same time
andpurpose-driven theyear. With this, we demonstrated
our ability tomanage our business
improving their competitive and
leadership positions in these markets.
business concurrently in-line with ourstrategy and with these SVI and Cotton also improved their
in order to build an wider globaltrends and challenges

shapingthe world we all live in.
competitive position but did not achieve
their nancial performance goals, with
enduring and In many ways, this years Annual underperformance in our United States
tomato processing business affecting
Report is an extension of these trends,
sustainable business. representative of the need to provide SVI, and underperformance in our
consistent transparency, while United States cotton operations affecting
engaging with and delivering our Cotton business.
information and insight to an Cluster 2
ever-broadening and important Our Cluster 2 businesses, (Edible Oils,
community of stakeholders. Rubber, Dairy, Packaged Foods and
This year our Annual Report narrative Commodity Financial Services), which
combines all 3 aspects of our include mostly gestating assets where
economic performance, our people we are establishing proof-of-concept
and social impact, as well as our and selectively scaling, continued to
environmental stewardship into 1 move towards becoming value
book, providing insight into elements contributing. Our Dairy business moved
of our business important to our decisively forward with a signicant
stakeholders. Our theme, Maximising reduction in losses in our Uruguay Dairy
Value and Purpose, reects the need farming operations, material
to balancebeing both a value creating improvement in our Russian farming
and purpose-driven business operations and strong out performance
concurrently in order to build an in the supply chain segment of our
enduring and sustainable business. Dairy business.
Cluster 3
Business performance
For Cluster 3 (Rice, Wood Products and
While it was a tough year for the Sugar), where we seek to remain asset
agri-sector as a whole and our light and maximise returns, Sugar and
performance did not meet our goals in Rice performed exceedingly well, while
some respects, Olam performed well there was some underperformance in
relative to many of our industry peers. our Wood Products business, even
We made good progress as we though that business was protable.
executed our plans in the rst year of
our refreshed 3-year strategic plan Cluster 4
(FY16-FY18). In Cluster 4 which includes Fertilisers
As explained in my CEO Review last and Gabon Special Economic Zone
year, we strategically prioritise our (GSEZ), where we are working to
portfolio into 4 clusters, with each partially sell down our stakes or
cluster having a set of common monetiseselect assets, GSEZ
business imperatives. In addition, we exceededexpectations for the year.
also prioritise and treat Africa as a Wecontinue to engage with potential
separate vertical with a special focus, strategic partners with a view to
given our Africa footprint and operating deconsolidate our Fertiliser business.
capability which is unique in Africa
our industry. Africa made a strong contribution to our
Cluster 1 overall performance for the year with
Our Cluster 1 businesses comprise broad based performance from all
6platforms, including Edible Nuts, sub-regions where we are present,
including West Africa, Central Africa,
2 Olam International Limited Annual Report 2016

South and East Africa, as well as Strengthening this Core is akin to research, built new product development
Middle East and North Africa. Cocoa, strengthening the core of your body capabilities and distribution capabilities
Coffee, Cotton, Edible Nuts and Grains the central set of muscles that helps a in terms of reach, effectiveness and
businesses in Africa all performed body maintain its power, balance and cost. Similarly, in the Commodity
better than plan in posting these record overall health. This has helped us build Financial Services business, we are
results from the region. This vindicates leadership positions in our core building asset management capabilities
the special emphasis that we have business over time, and in 2016 we and investing in developing third-party
placed on Africa and reects our have continued to strengthen this Core. fund raising capabilities for the future.
winability there. In the last few years, we have We have also decided to selectively
A detailed performance review and analysis can expanded from this Core into New invest in Ag Logistics, including elevation
be found on pages 18-35.
Cores in adjacent markets and value and port facilities in Russia, Ukraine and
Strategy review chain steps including selective Gabon as this is an enabler to our core
expansion into upstream plantations business of trading and supply chain
Our strategy rests on the power of a
and farming, selective downstream management. In many of these cases
repeatable model centred around a
expansion into branded Packaged we provide the base/captive load to
strong core business, namely, supply
Foods business and entry into the keep these facilities utilised given our
chain management of agricultural raw
Commodity Financial Services own trading volumes in these locations.
materials and ingredients built around
business. In each case we have Over the course of 2016, we became
deep capabilities that include farmgate
leveraged some of the key capabilities acutely aware of how digital
sourcing and origination capability,
in our core business while adding technologies are fundamentally
deep customer relationships, strong
specic new capabilities that are transforming the way we farm, live, work
research and trading capability,
required for us to succeed in the New and consume. Digital is changing not
manufacturing capability, inland and
Cores that we are developing for the only the way that we operate as
marine logistics capability, robust risk
future. For example, in the upstream companies, but also signicantly
management skills, cost management
expansion, we are investing to develop changing the way we interact with our
and operational excellence capability,
world class farming capabilities and service providers, farmer suppliers,
African footprint and operating
being a leader in sustainability, customers, communities, civil society
capability and a unique entrepreneurial
including environmental and social and our employees. We have paid
culture. We have continuously
stewardship. In the downstream particular attention to developments in
deepened, rened and adapted these
Packaged Foods business, we have this area and set up a Digitalising Olam
capabilities over time and combined it
invested in building new capabilities in Task Force (DTF) to enable us to seize
in our business model in a way that has
brand building and category the opportunities that this presents.
allowed us to repeat this over and over,
management, developed deep Weare evaluating 8 initiatives including
from 1 product (cashew) to now 47
customer insights through market aFarmer Services platform, Customer
products over the last 27 years.
Our Current Core and Future New Cores

Supply Chain and Selective Midstream
Global origination and sourcing, Primary and value added processing,
Inland and marine logistics, Merchandising, Trading,
Value-added solutions and services,
Risk Management
Selective Upstream Selective Downstream

Perennial tree crops, Branded consumer
Broadacre row crops, New Core #1 New Core #2 products and distribution
Dairy farming, Selective Packaged Foods business
Forest concessions Selective (PFB, Africa)
Downstream
Upstream
(PFB, Africa)
Core
Supply Chain
and Selective
Midstream
New Core #3
Digitising Olam: New Core #4 Commodity Commodity
Digital Financial Services
Farmer services platform, customer
(CFS)
Financial Services:
services platform, supply chain
platform, sustainability platform, farm Asset/Fund Management,
of the future, factory of the future Market Making,
Volatility Trading and
Risk Management Solutions
olamgroup.com 3
Overview
CEO Perspective
Aligning the organisation to execute our strategy
Vertical Assets Horizontal Assets Diagonal Assets

and Capabilities and Capabilities and Capabilities
Driven at the BU level Shared by Glue that secures
Deep product all businesses 2QH&RPSDQ\EHQHWV
knowledge Strategic planning Intangibles
Deep market insights Risk management skills (shared purpose,
Strong presence in Talent management governing objective,
critical origins capabilities vision, spirit,
culture, values)
Strong supplier and Treasury and Financing
customer relationships capabilities Tangibles
(Global Assignee
IT Talent Pool, common
Shared services operating procedures,
common performance
management processes)
Services platform, Supply Chain of the same language and processes, we At Olam, we believe increasingly, it is
Future, Farm of the Future, Factory of areable to develop state of the art the companies that are clear about their
the Future, Trading of the Future, capability on these common processes purpose that will be successful in the
Sustainability platform and Farm across the businesses creating future. Our purpose of Growing
Management Services. Five prototypes horizontal value. This frees up the Responsibly inspires everything that we
are under development and we are business teams to focus on their core do at Olam. Growing Responsibly
excited with the opportunities that activities with regard to managing their underpins the fact that we are clearer
these initiatives represent in upstream farming investments, their than ever that Olam must be both a
transforming our business and core supply chain and trading value maximiser and a purpose
potentially disrupting our industry. business, and dealing with their maximiser at the same time. We do not
Through these initiatives, we want to customers where the business units see these 2 objectives as being in
create a digital rst culture in Olam. can clearly add more value. conict with each other and is therefore
not an either, or but a both choice
Aligning our organisation to execute our Our third objective is to create
for us.
strategy diagonal value that helps us extract
Given this strategy, we have designed One Company benets and which We are seeing businesses starting
an organisational model that will allows us to act as both a single toshift from the dominant model of
enhance our capacity to execute this company and different businesses at thelast 50 years that focused on the
strategy. This is best understood the same time. Diagonal assets help primacy of the shareholder and
against the backdrop of various kinds vertical assets create horizontal value therefore focused on shareholder value
of assets and capabilities that our and help horizontal assets create maximisation. While that will continue
business has and the specic value vertical value. The various elements of toremain an important deliverable
they create. In this regard, our rst the Olam Way, including our shared going forward, wealso need to
objective is to ensure that we improve core purpose, shared governing pursuea concurrent purpose-driven
the performance of our business units objective, our shared vision, our shared model emphasising social and
and increase their vertical value. For spirit, our shared culture and values, environmental stewardship that will
example, our farmgate procurement and our core competencies, provide enable ustocreate an enduring
network and deep customer the glue that allows us to extract One andsustainable business.
relationships are vertical assets. Company benets where the whole is We have always balanced investing
greater than the sum of the parts. forthe long-term while delivering
Our second objective is to design an
organisation that will help us create onourshort-term commitments to
Our purpose is our enduring focus continue toearn the right to grow.
horizontal value through shared
The macro changes that the world is Tothis end, we have successfully
services, including Strategic Planning
experiencing including the emergence realigned our shareholder base with
and Budgeting, HR, Finance and
of a post-globalisation era, potential shareholders who understand and
Accounts, Treasury, Investor Relations,
challenges to free trade and open support ourlong-term strategy,
Company Secretarial Services,
markets, accelerating geo-political notablywith Temasek Holdings
Legal,M&A, Risk, Internal Audit and
uncertainty and continued capital andMitsubishiCorporation as our
Compliance, Market Compliance,
superabundance have long-term 2 major shareholders.
Manufacturing and Technical Services,
implications for how businesses are led,
IT, Corporate Responsibility and Olam touches peoples lives every
organised, managed and nanced
Sustainability, Tax and Corporate dayfrom our customers and the
going forward.
Communications. By commonising consumers who use our products
and standardisation, adopting the tothe communities where we live and

work, and the interface with the natural Food Safety (see page 6 for how these resulting in a reduction of total number
environment as we produce or source relate to our goals and policies). These of OLC farmers compared to 2015.
our various agricultural commodities. are fundamental to our vision of Nevertheless, the training and
Forexample, we believe that 1 in 3 achieving end-to-end sustainable investments made into their
chocolate bars that people consume supply chains by 2020, for which we communities have equipped the exiting
are made from cocoa beans handled have laid out clear, time bound goals. OLC farmers to progress with their
by Olam, the amount of peanuts Reviewing our progress in 2016, we new buyers.
sourced and processed by Olam could have continued to improve our safety We continue to pursue and adopt
serve 7.6 billion peanut butter record and our carbon and water international certication standards
sandwiches, we harvest and process footprints, while the Olam Farmer where available, such as FSC1 and
enough tomatoes to top 3.2 billion Information System is providing RSPO2, while also strengthening our
pizzas annually, and the quantity of rice unparalleled insights into the internal policies, standards and codes
supplied by Olam could feed each smallholder landscape which means with input from our stakeholders. This
person in the world with 3 servings. we can target our interventions with this year, for example, we are launching
Our carbon footprint, water footprint group all the more efciently. In turn, ourGlobal Forest Policy. We engaged
and waste footprint in providing these this is helping to create an increasing in a constructive dialogue with an
goods and services is something that number of enduring partnerships with NGOon our Palm and Rubber
we are concerned about and we are customers, NGOs, development plantation operations in Gabon and our
focused on improving their efciency. In nance institutions and donors under third-party palm oil sourcing in Asia
this regard, our sustainability strategy the Olam Livelihood Charter (OLC) and reached an agreement that
is fully aligned with the United Nations programme as we pursue our mutual bridged our differing positions on
Sustainable Development Goals goal of catalysing farmer livelihoods by these operations.
(SDGs) which set out a vision for improving their crop yields and quality
ending poverty, hunger, inequality and Working with our peers
of the crops produced. We accomplish
protecting the earths natural this by providing farmers better market Even in a highly competitive sector like
resources. These SDGs provide us with access, micro-nance, farm inputs and ours, we have always felt that ambitious
a framework and guide our actions so extension training. All of these sustainability goals to tackle the major
that we can participate in creating a initiatives help farmers, particularly the developmental challenges that confront
better world that we all aspire to. younger generation, see agriculture as our sector cannot be achieved by
Focusing on issues that matter most a viable career. There has been some operating in siloes or on our own. I am
churn in the number of farmers encouraged that so many of our peers
With this in mind, in 2016 we continued share this belief. At Olams Building
to drive our approach to sustainability participating in our OLC programme in
2016. Thousands of new farmers Sustainable Futures Forum in 2016, the
by focusing on 7 material areas: ground-breaking Global Agri-
Livelihoods, Land, Water, Climate joined the OLC this year, while some
others are no longer in our programme, business Alliance (GAA) was
Change, Labour, Food Security and launched. This pre-competitive,
voluntary, CEO-led private sector
initiative demonstrates a growing
commitment to establish collaboration
and partnerships to help solve the
seemingly intractable problems facing
our sector including food and nutrition
insecurity, water scarcity, impact of
climate change and growing inclusively
within planetary boundaries. While the
enormity of these challenges cannot
be underestimated, this industry-wide
effort to solve them will hopefully result
in making a signicant impact in
tackling these major developmental
challenges. It will also offer
considerable new opportunities to
companies, not just in terms of
enhancing customer stickiness as they
look to us to help solve their supply
chain issues and protect their
reputations, but also unlock new
streams of income. The recent report
of the Business and Sustainable
Development Commission (BSDC)
Olam Farmer Information System manages the rst mile of the Olams supply chain, giving unparalleled insight released in January 2017, highlighted
andtransparency.
olamgroup.com 5
Overview
CEO Perspective
Our material areas
The table below shows how our material areas and goals are embraced by a framework built on policies which then drive
our standards, procedures and technical controls.
HOW ARE WE GROWING RESPONSIBLY?

Sustainability goals
Material areas Social Environment
Food Food
Climate
Livelihoods Labour Security and Safety and Land Water
Change
Nutrition Quality
page 42 page 48 page 56 page 60 page 68 page 74 page 80
Pledge Supporting Providing a safe Improving Improving food Selecting and Responsible use Adapting to
thriving workplace access to safety and managing of water for our climate risks
communities where affordable food quality across land responsibly own needs and
everyones our business without opportunities for
rights impacting the Olam and
are respected needs of others communities
Goals Goal 1: Goal 3: Goal 5: Goal 6: Goal 7: Goal 8: Goal 9:

Economic Zero-harm Food security Safe and Sustainable Sustainable Reduced
opportunity workplace and nutrition reliable foods for development water use GHG emissions
and inclusion our customers and use of
land-based
ecosystems
Goal 2: Goal 4: Goal 10:

Good health Respect for Increased
and well-being workers rights resilience to
climate-
related risks
Policies
Health
and Safety
Quality and
Environment
Food Safety
Human
Resources1
Standards
Farmers
Olam Livelihood Charter
Plantations
Olam Plantations, Concessions and Farms Code
Suppliers
Supplier Code Supplier Code
Factories
and worksites QEHS 2 QEHS 2
Standards Standards
Delivering
through Customers, Investors, Farmers, Donors/Foundations, NGOs, Governments, Industry Associations
partnerships
1
In progress.
2
Quality, Environment, Health and Safety.
Note: the goals have been renumbered in 2016.
that addressing these sustainability
challenges could potentially generate
down our stakes in our Cluster 4
businesses while Africa will continue to
Addressing these
signicant economic opportunities for
enlightened businesses, possibly
remain as aseparate vertical focus. sustainability
adding as much as US$12 trillion to the
We will continue to live and
demonstrate Olams 3 key brand values challenges could
global economy. of being an unrivalled expert, a change
agent and transformer, and nally a
potentially generate
People are our differentiator
The year in review demonstrated again
trusted partner in our industry. We signicant economic
believe focus on these elements
that we have an extraordinary and remains crucial to our success in a opportunities for
dedicated team at Olam, across the
breadth and depth of our businesses
world where change is a constant.
enlightened businesses,
around the world. Retaining and
attracting the best talent remains a
Chairman transition possibly adding as
Mr Kwa Chong Seng stepped down
priority. Our talent development from Olams Board as its Non-Executive much as US$12 trillion
programme and the introduction of our
Aspire performance management
Chairman and Independent Director on
31 December 2016. Chong Sengs
to the global economy.
system saw us take the bold step of tenure, rst as Deputy Chairman from
removing employee ratings entirely to October 2014, and then as Chairman
focus on the appraisees development from October 2015 made a deep
by ensuring a rewarding and engaging impact on Olams strategy and
workplace are helping us to build business. During this period, he played
essential skills across our teams. We a critical role in forging the strategic
are focusing on managers having partnership with Mitsubishi Corporation
continuing conversations that are which is expected to accelerate Olams
future focused with their team growth. He also oversaw several
members for developing their organic and inorganic growth initiatives
capabilities and creating the basis for that helped Olam to build market
their retention and long-term leading positions in its prioritised
career planning. platforms. On behalf of Olams Board
In 2016, we further strengthened the and Management Team I would like
functions that create the horizontal toexpress our deepest gratitude
value that help unify each of our toChong Seng for his stewardship,
vertical businesses. The Olam Way, guidance and motivation of the Board
our culture, values and purpose also and the Management Team during
create diagonal assets that bind these his tenure.
vertical and horizontal assets together. I I am also pleased to welcome Mr Lim
rmly believe we are now at a point Ah Doo as our new Non-Executive
where we can proudly say that we have Chairman and Independent Director
built a unique organisation that not only with effect from 1 January 2017.
supports but also enhances our AhDoo has extensive experience
delivery of our business and inbanking, natural resources,
sustainability objectives. infrastructure development and
emerging markets from both a banker
The year ahead and operator standpoints. His deep
In 2017 we will be entering the second knowledge, insights and proven
year of our 3-year strategic plan. leadership will undoubtedly benet
Wecontinue to see signicant Olam. The Board and I are delighted to
opportunities for protable growth have Ah Doo on board to lead Olam
inthe agri-sector despite ongoing through its next phase of growth.
volatility. The major themes and
priorities for our business will not
change signicantly in the coming year.
We will continue to invest in building
leadership positions in our 6 prioritised
platforms in Cluster 1, establish
proof-of-concept and selectively scale
our Cluster 2 businesses, remain asset
light and maximise returns in our
Cluster 3 businesses and partially sell Sunny Verghese 1
FSC Forest Stewardship Council
Co-Founder and Group CEO 2
Roundtable on Sustainable Palm Oil
olamgroup.com 7
Overview
Highlights
FINANCIAL AND PERFORMANCE

HIGHLIGHTS
Volume Sales volume by segment Sourcing volume by region
000 MT
(000 Metric Tonnes) (000 Metric Tonnes)
10.9%
Edible Nuts, Spices and 24.7%
11.5%
VegetableIngredients 1,569.7
Confectionery and 29.4%
Beverage Ingredients 1,687.5 11.7%
Food Staples and

Packaged Foods 9,496.1
Industrial Raw Materials, 14,415.8 14,415.8
Ag Logistics and Infrastructure 1,662.5 (2015: 12,506.7) (2015: 12,506.7)
Asia, Australia and Middle East 29.4% 27.4%

Africa 18.6%
Europe 27.4% 65.9% 18.6%
Americas 24.7%
Revenue Sales revenue by segment Sales revenue by region

S$ million
(S$ million) (S$ million)
Edible Nuts, Spices and 13.5%
VegetableIngredients 3,981.1 23.0%
19.3% 32.8%
Confectionery and
Beverage Ingredients 7,711.0
Food Staples and
Packaged Foods 6,110.8
Industrial Raw Materials, 20,587.0 20,587.0
Ag Logistics and Infrastructure 2,784.1 (2015: 19,052.6) (2015: 19,052.6)
Asia, Australia and Middle East 32.8%

29.7%
Africa 15.9% 28.3%
37.5% 15.9%
Europe 28.3%
Americas 23.0%
Invested capital and EBITDA Invested capital and EBITDA Invested capital and EBITDA
bybusiness segment byvaluechain segment
(S$ million) Invested (S$ million) (S$ million)
capital EBITDA
Edible Nuts, Spices and 100 (%) 16,649.0 1,202.8 100 (%) 16,649.0 1,202.8
VegetableIngredients 3,642.7 331.8
Confectionery and 80 80
Beverage Ingredients 6,109.5 407.3
Food Staples and 60 60
Packaged Foods 4,522.1 330.2
Industrial Raw Materials, 40 40
Ag Logistics and
Infrastructure 2,220.9 135.2
20 20
Commodity Financial
Services 153.8 (1.6)
0 0
Upstream 3,764.2 79.2 Invested EBITDA Invested EBITDA

capital capital
Supply chain 6,537.7 503.5
Midstream and downstream 6,347.1 620.1

For the 12 months ended 31 December (S$ million)
2015
2016 Restated % Change
3URWDQG/RVV6WDWHPHQW
Sales Volume (000 Metric Tonnes) 14,415.8 12,506.7 15.3
Sales Revenue 20,587.0 19,052.6 8.1
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 1 1,202.8 1,085.2 10.8
Earnings Before Interest and Tax (EBIT) 1 849.3 818.6 3.8
Prot Before Tax 1 433.4 (27.3) N.M.
Prot After Tax and Minority Interest 351.3 (114.9) N.M.
Operational Prot After Tax and Minority Interest 1 363.8 295.6 23.1
Per Share
Earnings Per Share basic (cents) 11.5 (5.2) N.M.
Operational Earnings Per Share basic (cents) 1 11.5 11.0 4.9
Net Asset Value Per Share (cents) 190.8 179.7 6.2
Net Dividend Per Share (cents) 2 6.0 6.0
Balance Sheet
Total Assets 23,468.9 20,854.9 12.5
Total Invested Capital 16,649.0 14,374.7 15.8
Total Debt 13,670.5 12,293.9 11.2
Cash and Cash Equivalents 2,144.0 2,143.2
Shareholders Equity 5,398.3 5,079.1 6.3
Cash Flow
Operating Cash Flow Before Interest and Tax 1,243.5 1,150.8 8.1
Net Operating Cash Flow After Changes in Working Capital and Tax 1,015.8 154.9 555.8
Free Cash Flow to Firm (418.1) (2,062.6) (79.7)
Free Cash Flow to Equity (765.8) (2,540.9) (69.9)
Ratios
Net Debt to Equity (times) 3 1.99 1.96 0.03
Net Debt to Equity (times) adjusted for liquid assets 3 0.73 0.73
Return on Beginning-of-period Equity (%) 6.1 (3.0) N.M.
Return on Average Equity (%) 5.8 (2.8) N.M.
Return on Invested Capital (%) 4.0 3.0 1.0
EBITDA on Average Invested Capital (%) 7.8 8.4 (0.6)
Interest Coverage (times) 4 2.0 1.0 1.0
Note: The results for 2015 have been restated due to changes to accounting standards pertaining to Agriculture (SFRS 41) and Property, Plant and Equipment
(SFRS 16) that came into effect from 1 January 2016. Please refer to the General Information on page 86 for details.
1. Excludes exceptional items.
2. Total dividend of 6.0 cents per share for 2015 was declared for the 18-month scal year 2015 from 1 July 2014 to 31 December 2015. Proposed nal dividend
of 3.0 cents for 2016 is subject to shareholders approval at the 22nd Annual General Meeting.
3. Before Fair Value Adjustment Reserves.
4. EBIT on total interest expense.
olamgroup.com 9
Overview
Highlights
Sales volume Earnings Before Interest, Tax, Prot After Tax and Minority Interest
(000 Metric Tonnes) Depreciation and Amortisation (S$ million)
(S$ million)
16,000 15,542.1 1,500 600 597.2
13,924.5 14,021.9 14,415.8 500

12,506.7 1,200 1,199.9 1,129.0 1,202.8
12,000 400 405.5
1,062.9 1,085.2
345.8 351.3
900 300
8,000 200
600 100
4,000 0
300
-100
0 0 -200 (114.9)
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Restated Restated Restated Restated Restated Restated
1,650.3 1,657.7 1,527.2 1,549.2 1,569.7 308.5 346.7 360.5 393.5 331.8
1,580.1 1,592.8 1,437.1 1,689.5 1,687.5 322.6 268.5 275.6 284.0 407.3
8,920.4 10,450.7 9,356.4 7,904.9 9,496.1 296.0 378.2 295.2 212.1 330.2
1,773.7 1,840.9 1,701.2 1,363.1 1,662.5 143.5 218.6 215.6 185.1 135.2
(7.7) (12.1) (17.9) 10.6 (1.6)
Sales revenue Invested capital Operational Prot After Tax

(S$ million) (S$ million) andMinority Interest
(S$ million)
25,000 20,000 400

372.0 363.8
17,500 16,649.0 350 343.9
20,587.0
20,000 18,966.8 20,040.0 19,771.9 19,052.6
15,000 14,374.7 300 294.3 295.6
15,000 12,500 11,412.2 11,560.7 250

10,865.6
10,000 200
10,000 7,500 150
5,000 100
5,000
2,500 50
0 0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
2,764.8 3,465.0 3,692.3 4,227.2 3,981.1 3,049.2 3,610.0 3,363.6 3,463.0 3,642.7 Operational Prot After Tax and Minority Interest is Prot
5,363.2 4,968.0 5,721.8 6,859.6 7,711.0 1,913.9 2,346.6 3,246.9 5,680.9 6,109.5 After Tax and Minority Interest excluding exceptional items
6,311.8 7,406.1 7,187.3 5,391.2 6,110.8 3,691.3 3,612.8 3,075.1 3,230.6 4,522.1
4,525.6 4,199.5 3,170.6 2,574.6 2,784.1 2,193.9 1,839.4 1,872.0 1,917.5 2,220.9
1.4 1.4 (0.1) 0.0 0.0 17.4 3.4 3.2 82.6 153.8

Key
Edible Nuts, Spices and Vegetable Ingredients
Confectionery and Beverage Ingredients
Food Staples and Packaged Foods
Industrial Raw Materials, Ag Logistics and Infrastructure
Commodity Financial Services
Earnings Per Share Return On Equity Number of customers

(cents) (%)
25 24.0 18 24,000 22,900
20 15 15.2
20,000
15 16.1 13.7 12 12.0
16,000 16,200
14.7 11.5 9.3
10 13.6 11.0 9 11.0 13,800
13,600
11.5 9.3 12,000 12,300
5 11.5 6 6.5 6.4
7.2
8,000
0 3 6.1
-5 0 4,000
(5.2)
-10 -3 (3.0) 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Earnings Per Share (cents) Return on Beginning-of-period equity Figures for 2012-2014 are computed based on 30 June
Operational Earnings Per Share (cents) Return on Beginning-of-period equity excluding year-end basis
exceptional items
Shareholders equity Net asset value per share Top 25 customers share
(S$ million) (cents) of total sales revenue
(%)
5,500 5,398.3 200 25 23.7

190.8 23.0
5,079.1 21.0
5,000 180 179.7 20
167.3 17.0
4,500 160 153.9 15
13.0
4,167.4
4,000 140 141.3 10
3,759.7
3,500 3,452.3 120 5
3,000 100 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Figures for 2012-2014 are computed based on 30 June
year-end basis
olamgroup.com 11
Overview
Highlights
2016 SOCIAL AND

ENVIRONMENTALHIGHLIGHTS
Olam endeavours to generate economic prosperity, contribute positively to social
welfare and manage our stewardship of the environment in a sustainable way,
so as to assure the creation of real long-term value for all.
Our Guiding Principles For anyone investing in the agricultural

Improve the livelihoods of farmers sector, understanding the social and
and communities through initiatives environmental aspects of the business
that enhance productivity is fundamental Olams activities
and returns. depend on the quality of soil, the
availability of water, and dedication of
Unlock mutual value withallof our
people to grow,harvest and process
stakeholders through collaboration.
crops. How we strive to mitigate our
Understand and mitigate our footprint on theenvironment is a matter 32,954 new farmers in 9
environmental footprint.
Ensure a safe, healthy and
of keen interest on the part of many countries registered on Olam
stakeholder groupswhile also being a
productive workplace for our people. direct reection of how we conceive Farmer Information System
Participate in professional our corporate responsibilities. to bring the total to more
associations to further develop Combining sustainability reporting with
ourkey goals. business performance in the Annual than 65,000 farmers across
Report is thus an important step. We 13 countries
hope it will help all stakeholders
Read more in the Livelihoods
toobtain a holistic view of our section of this report
business, showing just how far the
Olam teams go to drive change and
grow responsibly. totransform communities and build
partnerships. The Boards CR&S
Our Corporate Responsibility and Committee meets quarterly to review
Sustainability (CR&S) agenda is how our thematic agenda is being
organised around several major implemented across Business Units
themes, including land management, around the world with the paramount
labour and community development objective of developing a sustainable
issues. In 2016, Olams Board of business for investors and stakeholders
Directors visited Nigeria. This gavethe alike. We remain cognisant, however, of
Board an excellent opportunity to see operating in less than perfect social
how our objective of growing and regulatory environments. Provision
responsibly is being translated on the of health and education services to
ground into specic initiatives designed local populations is occasionally
lacking. In some places, the regulation
of access to public commodities, such
as water, remains decient.
Thechallenge for Olam is to identify
ways to help mitigate these issues and
ensure the sustainability of our
business.
Jean-Paul Pinard
Chair of the CR&S Board Committee

Lost Time Injury 92 entries received 82% relevant top tier
Frequency Rate reduced by for the Olam Prize for food processing
30% following 50% Innovation inFood Security facilities certied
reduction in 2015 BRC / FSSC 22000
Read more in the Labour Read more in the Food security and nutrition Read more in the Food safety and quality
section of this report section of this report section of this report
Over 30 partnerships to 190,000 people in Over 26 billion

improve the livelihoods of Africa reached under servings of fortied
more than 300,000 farmers the Olam Healthy food developed in Africa
under the Olam Livelihood Living Campaign
Charter (OLC)
Read more in the Livelihoods Read more in the Livelihoods Read more in the Food security and nutrition
29% Improvement on 31% Improvement on Launch of the Global

our FY15 carbon footprint our FY15 Irrigation and Agri-business Alliance
from Olams own operations Process Water intensity at the Building Sustainable
for Olams own operations Futures Forum convened
by Olam
Read more in the Climate change Read more in the Water Read more in the Food security and nutrition
olamgroup.com 13
Overview
Business model
WHERE WE PARTICIPATE AND HOW WE WIN

Value chain Selective upstream Supply chain
Perennial tree crops Global origination and sourcing
Broadacre row crops Primary processing
Dairy farming Inland and marine logistics
Forest concessions Merchandising
Smallholder farmers
0,//,21
Outgrower programme
Buying agents
Olam-managed
plantations, concessions
and farms Sourced raw
0,//,21
Where we participate
Products: almond, HECTARES materials in 2016

coffee, cocoa, dairy,
palm, peanut, pepper,
pistachio, rice, rubber, Investment in
walnut andwood agri-research 14.4
0,//,21
MT
Large-scale
farmer suppliers 36,600
Product platforms
Edible Nuts, Spices and Edible Nuts
Vegetable Ingredients Spices and Vegetable Ingredients
Confectionery and Cocoa

Beverage Ingredients Coffee
Food Staples and Dairy

PackagedFoods Grains and Animal Feed
Edible Oils
Rice
Sugar and Sweeteners
Industrial Raw Materials, Cotton
Ag Logistics and Wood Products
Infrastructure Rubber
Fertiliser
Commodity Risk Management Solutions

Financial Services Market-Making, Volatility Trading and Asset Management
Trade and Structured Finance
At the grower end, we out-origin our competition by

Strategy Competitive buying from the lowest level of aggregation possible.
At the customer end, we offer value added solutions and
strategy VHUYLFHVLQFOXGLQJWUDFHDELOLW\FHUWLHGUDZPDWHULDOV
The pathway to achieving our vision risk management solutions, vendor managed inventory
How we win
solutions etc.
Core We have built distinctive capabilities in 4 areas:

1. Business Specic skills (Origination, Trading, Processing and Logistics).
competencies
2. Growth Enabling skills (Talent Management, M&A1, Risk Management and Capital Raising)
People We attract and retain talented individuals whom we engage and inspire.
1 2
Mergers and Acquisitions. GSEZ including ports and infrastructure.

Selective mid/downstream
Trading Value-added/manufacturing
Value-added solutions Branding and distribution (Africa)
Risk management
Primary processing Food safety, quality

plants in origin assurance, research and
development and recipe
development
Value created
3/$176
Sales and 3/$176

marketing, trading
Secondary processing plants inorigin
or closer to thecustomer
Risk management and

value-added services
Packaged foods manufactured and

marketed to consumers across
multiple African countries
Packaged Foods
Gabon Special Economic Zone2
We focus on building leadership positions We grow market share in our

Portfolio in niche commodities. We selectively Growth core business and then expand
integrate across the agricultural value into adjacent businesses that
strategy chain, including upstream, supply chain strategy share customers, channels,
Core, mid-stream and down-stream with costs and capabilities with our
a special emphasis on Africa. existing business.
3. Privileged Assets and Networks (Sourcing Network, Customer Network)

See our highlights
on pages 8 to 13
4. Stakeholder Management capability
They live our values, are passionate, responsive, reliable, ambitious,

pioneering and innovative creating a true source of competitive advantage for Olam.
olamgroup.com 15
ECONOMIC
CONTENTS:
18 Group COOs review
24 Edible Nuts, Spices and Vegetable Ingredients
26 Confectionery and Beverage Ingredients
28 Food Staples and Packaged Foods
30 Industrial Raw Materials, Ag Logistics and Infrastructure
31 Commodity Financial Services
32 Value chain review and analysis
36 Principal risks and uncertainties
Economic
Group COOs review
STEADY PROGRESS IN 2016 ON IMPROVED

OPERATIONAL PERFORMANCE AND
STRONG STRATEGY EXECUTION
Key highlights
Financial performance
In 2016, Olam achieved a PATMI of
S$351.3 million as against a negative
S$114.9 million in the previous year,
primarily due to improved operational
performance and the absence of the
exceptional losses that we had in 2015.
The exceptional losses in 2015 had
come largely from fair value losses on
our equity investment in PureCircle,
which was due to a conservative
interpretation of an accounting
treatment, with no change to total
equity (including reserves) or cash ow.
The remaining portion of the
exceptional losses was a result of
deliberate actions to optimise
operations for future growth, including
the buy-back of higher cost debt and
restructuring cost for the Dairy
operations in Uruguay. The buy-back of
higher cost debt, which was part of our
debt optimisation efforts that continued
into 2016, resulted in a net exceptional
loss of S$12.5 million for this year.
Stripping out these exceptional items,
operational PATMI showed a strong
23.1% year-on-year growth to
S$363.8 million, compared with
S$295.6 million in 2015.
A. Shekhar,
Executive Director and Group COO

S$ million 2016
2015
Restated % Change Strong growth from
Volume (000 MT)
Revenue
14,415.8
20,587.0
12,506.7
19,052.6
15.3
8.1
the Confectionery and
Net gain/(loss) in fair value of biological assets
EBITDA
14.1
1,202.8
(51.9)
1,085.2
N.M.
10.8
Beverage Ingredients
Depreciation and amortisation
Net nance costs
(353.5)
(403.5)
(266.6)
(448.9)
32.6
(10.1)
and Food Staples
Taxation (94.3) (89.3) 5.6 andPackaged Foods
Exceptional items
PAT
(12.5)
339.1
(397.0)
(116.6)
N.M.
N.M. segments
PATMI
Operational PATMI
351.3
363.8
(114.9)
295.6
10
23.1
demonstrates that our
Note: Results are for the 12-month nancial period ended 31 December. strategy of accelerating
Sales volumes increased 15.3% as Foods was up 55.7% from investments and
most segments registered higher
volumes, while revenues grew 8.1%
S$212.1 million to S$330.2 million.
Edible Nuts, Spices and Vegetable
addressing specic
year-on-year despite higher volumes, Ingredients was down 15.7% from areas of
with lower prices of some commodities, S$393.5 million to S$331.8 million and
offsetting price increases in others. Industrial Raw Materials, Ag Logistics underperformance
Earnings Before Interest, Tax, and Infrastructure was also down
27.0% from S$185.1 million to
tostrengthen our
Depreciation and Amortisation
(EBITDA) grew 10.8% year-on-year to S$135.2 million. Commodity Financial
Services (CFS) went down from
leadership positions
S$1.2 billion, driven by growth in
Confectionery and Beverage S$10.6 million to a loss of S$1.6 million. inthese segments
Ingredients and Food Staples and
Packaged Foods, which offset lower
Our EBITDA was achieved on a higher
invested capital of S$16.6 billion, which
isworking.
contributions from other segments. increased mainly due to the acquisition
EBITDA from Confectionery and of wheat milling and pasta
Beverage Ingredients was up 43.4% manufacturing assets in Nigeria, and
from S$284.0 million to S$407.3 million peanut shelling assets in the USA,
while Food Staples and Packaged aswell as various organic growth
initiatives both in upstream and
Earnings Before Interest, Tax, Invested capital

Depreciation and Amortisation (S$ million)
(S$ million)
1,500 20,000
1,202.8 16,649.0
1,200 1,199.9 1,129.0 16,000
1,062.9 1,085.2 14,374.7
900 12,000 10,865.6 11,412.2 11,560.7
600 8,000
300 4,000
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Restated Restated Restated Restated
EBITDA/IC (%) 10.7 10.8 9.8 8.4 7.8 Working
capital 6,202.2 5,840.2 6,017.2 7,652.8 8,852.8
Fixed
capital 4,663.4 5,572.0 5,543.5 6,721.8 7,796.2
olamgroup.com 19
Economic
Group COOs review
We reduced our midstream value chain integration.

Working capital has also increased on
Executing on our strategic plan
2016-2018
interest costs despite account of our volume growth,
compounded by higher commodity
We continued to execute on our
ahigher asset base prices, especially in cocoa, coffee and
refreshed strategic plan going into
2018 through targeted organic and
cotton during the year.
andwill continue to The EBITDA on average invested
inorganic investments. During the year,
we announced that we will invest
optimise our capital capital ratio (EBITDA/IC) was 7.8%, US$150.0 million to set up 2
down from 8.4% in the year, after the state-of-the-art animal feed mills,
structure as we focus S$2.2 billion total increase in poultry breeding farms and a hatchery
on targeted invested capital. to produce day-old chicks in Nigeria.
Therst mill is expected to be
investments in our Strategic partnership with Mitsubishi
Corporation
commissioned in the second half
of 2017.
prioritised platforms In 2015, we entered into a strategic During the year, we completed
and ensure that our partnership with Mitsubishi Corporation
(MC) to collaborate in mutually
several acquisitions:
gestating assets reach benecial business opportunities in

100.0% interest in Amber Foods,
which owns wheat milling and pasta
Japan and across the world. MC is also
their full potential. our second largest shareholder with
manufacturing assets in Nigeria,
forUS$275.0 million;
20.3% interest in our company. In April
2016, we achieved our rst partnership 100.0% interest in Brooks Peanut
milestone by forming a 30/70 joint Company at an enterprise value of
venture MC Agri Alliance (MCAA) to US$102.1 million (post working
import and distribute sustainable, capital adjustments on closing);
traceable agricultural products and palm and palm oil assets from SIAT
food ingredients, including coffee, Gabon for approximately
cocoa, sesame, edible nuts, spices, US$24.6 million through Olam Palm
vegetable ingredients and tomato Gabon (OPG), the 60/40 joint venture
products, for the Japanese market. between Olam and the Republic
MCAA commenced operations on of Gabon;
1 October 2016. remaining 50.0% interest in Acacia
Investments (Acacia) from its joint
Olam and MC have also set up a
venture partner for US$24.0 million;
partnership committee to explore
and
initiatives across platforms and regions
in which we should collaborate. In 100.0% interest in East African coffee
addition to the 2 new Directors specialist Schluter S.A. for
representing MC, Mr Katsuhiro Ito and US$7.5 million.
Mr Yutaka Kyoya, who joined our Board Some of these investments will be
in late 2015, we also have a few senior discussed in further detail in the
managers from MC joining our global business segments that follow.
management team as part of our
partnership agreement.

Summary of nancial
andoperating results
Balance sheet analysis
In 2016, our total assets amounted to
S$19.3 billion, comprising S$8.2 billion
of xed capital, S$8.5 billion of working
capital and S$2.1 billion of cash. These
were funded by S$5.8 billion of equity,
S$6.0 billion of short-term debt and
S$7.7 billion of long-term debt.
Compared with 2015, our overall
balance sheet grew by S$1.7 billion
due to the acquisition of the wheat
milling and peanut shelling assets and
working capital increase, as well as
other capital expenditure (Capex)
investments.
Working capital rose by S$222.1 million
compared with 2015 with the increase
in volumes after the acquisition of
these businesses, as well as with
higher prices of commodities, including
dairy, sugar, cotton, cocoa and coffee.
Working capital efciency stayed
largely at at 150 days as at end-2016
as higher inventory days, advances to
suppliers and receivable days were Following the acquisitions of MMI (2014) and Brooks (2016) Olam has become the most vertically integrated
compensated by longer trade supplier in the US peanut industry with strategic assets in shelling, blanching and ingredients in the most cost
creditor days. competitive peanut origin.
Use of funds Source of funds Cash-to-cash cycle

(S$ million) (S$ million) (Days)
20,000 19,304.7 20,000 19,304.7 150 149 150
17,613.6 17,613.6
16,000 16,000 148
12,000 12,000 146
8,000 8,000 144
4,000 4,000 142
0 0 140
2015 2016 2015 2016 2015 2016
Restated Restated Restated
Fixed capital 7,340.5 8,169.5 Long-term debt 6,781.7 7,687.5
Working capital 8,295.6 8,517.7 Short-term debt 5,512.1 5,983.0
Cash 2,143.1 2,144.0 Non-controlling interests 240.5 235.9
Others (165.8) 473.5 Equity and reserves 5,187.0 5,797.1
Fair value reserve (107.9) (398.8)
olamgroup.com 21
Economic
Group COOs review
Cash ow analysis Cash ow summary

2015
We recorded substantially higher net S$ million 2016 Restated Change
operating cash ows of S$1.0 billion for Operating Cash Flow (before Interest and Tax) 1,243.5 1,150.8 92.7
2016 compared with S$154.9 million a Changes in Working Capital (227.7) (995.9) 768.2
year ago. Free Cash Flow to Firm 1HW2SHUDWLQJ&DVK)ORZ 1,015.8 154.9 860.9
(FCFF) improved signicantly from a Tax paid (48.4) (127.8) 79.4
negative S$2.1 billion in 2015 to a Capex/Investments (1,385.5) (2,089.7) 704.2
negative S$418.1 million in 2016 as Free Cash Flow to Firm (FCFF) (418.1) (2,062.6) 1,644.5
improved net operating cash ows Net interest paid (347.7) (478.4) 130.7
were met by a signicant reduction in Free cash ow to equity (FCFE) (765.8) (2,540.9) 1,775.1
net Capex. Net Capex was S$1.4 billion Year-on-
2015 Year 2014
as a result of the acquisition of the S$ million 2016 Restated Change Restated 2013 2012
wheat milling and peanut shelling Operating Cash Flow (before Interest
assets, and continued investments in and Tax) 1,243.5 1,150.8 92.7 1,148.3 1,144.9 969.3
upstream and midstream assets. Changes in Working Capital (227.7) (995.9) 768.2 (766.2) (98.2) (55.0)
Similarly, Free Cash Flow to Equity 1HW2SHUDWLQJ&DVK)ORZ 1,015.8 154.9 860.9 382.1 1,046.7 914.2
(FCFE) also improved from negative Net interest paid (347.7) (478.4) 130.7 (411.5) (485.0) (434.6)
S$2.5 billion a year ago to a lower Tax paid (48.4) (127.8) 79.4 (65.6) (64.3) (44.1)
negative of S$765.8 million in 2016. Cash from divestments 32.0 249.8 (217.8) 468.4 95.6 90.4
)UHHFDVKRZEHIRUHFDSH[LQYHVWPHQWV 651.7 (201.5) 853.2 373.4 593.1 525.9
As the table shows, our Free Cash Flow
Capex/Investments (1,417.5) (2,339.4) 921.9 (455.7) (913.2) (1,553.3)
before Capex and investments is back
Free Cash Flow to Equity (FCFE) (765.8) (2,540.9) 1,775.1 (82.3) (320.1) (1,027.4)
to positive territory at S$651.7 million in
2016 and higher than that achieved in
the last 3 years prior to 2015. Gradual reduction in cost of debt for new issuances
Date Description Tenor Effective Coupon
Optimising our debt portfolio 5 April 2016 US$300.0 million senior notes 5-year due 2021 4.50%
14 April 2016 US$325.0 million RCF 1-year due 2017
Our ongoing debt optimisation efforts, US$325.0 million RCF 2-year due 2018
which started in 2014 and continued 19 April 2016 US$175.0 million IFC loan 5-year due 2021
into 2016, further helped lower our 17 May 2016 5.5 billion (US$50.0 million) 5-year due 2021 3.85% (US$ post-swap)
effective borrowing rate from 4.8% in 21 July 2016 US$500.0 million perpetual 5-year due 2021 5.35%
2015 to 3.5% in 2016. This resulted in a capital securities
reduction in net interest expense of 8 September 2016 US$150.0 million (tap on 5-year due 2021 4.367%
S$45.5 million despite an increase in US$300.0 million notes)
net debt of S$1.4 billion during the 13 October 2016 US$400.0 million RCF 1-year due 2017
US$800.0 million RCF 2-year due 2018
year. Various initiatives were taken to
US$800.0 million RCF 3-year due 2019
optimise the tenor and cost of debt by
6 December 2016 US$175.0 million xed rate notes 5-year due 2021 3.90%
buying back higher-cost debt and by
reducing the overall tenor of the
debt portfolio. Borrowing mix
(%)
Our credit spread across all tenors has
come down. Spreads across 100
short-term bilateral banking lines and
revolving credit facilities came down 80
while higher-cost, medium-term debt of
the US$500.0 million 6.0% Convertible 60
Bonds due 2016 was repurchased.
We were also successful in bringing 40
down the proportion of working capital
funded by medium and long-term debt. 20
This is now within our target of covering
25.0% to 35.0% of working capital 0
needs through medium and long-term 2015 2016
sources of funds.
Bilateral banking lines 26.7 21.6
Bank syndication 42.5 44.2
Debt capital markets 30.8 34.2

Gearing Net debt increased by S$1.4 billion as
compared with 2015 while our equity
2015
S$ million 2016 Restated Change position (before fair value adjustment
Gross debt 13,670.5 12,293.9 1,376.6 reserves) grew by S$610.1 million to
Less: Cash 2,144.0 2,143.1 0.9 S$5,797.1 million after we issued the
Net debt 11,526.5 10,150.7 1,375.8 US$500.0 million Perpetual Capital
Less: readily marketable inventory 5,909.2 5,232.9 676.3 Securities in July 2016. As a result, net
Less: secured receivables 1,381.4 1,155.8 225.6 gearing increased to 1.99 times from
Adjusted net debt 4,235.9 3,762.0 473.9 1.96 times in 2015. Adjusting for readily
Equity (before fair value adjustment reserves) 5,797.1 5,187.0 610.1 marketable inventories (RMI) and
1HWGHEW(TXLW\%DVLF 1.99 1.96 0.03 secured receivables, our net gearing
1HWGHEW(TXLW\$GMXVWHG 0.73 0.73 would be 0.73 times, unchanged from
the year before.
Liquidity
(S$ million as at 31 December 2016)
Liquidity
20,000 We maintained sufcient liquidity to
meet our working capital and capital
7,393 16,827
expenditure requirements, with a total
15,000
13,671 of S$16.8 billion in available liquidity as
at 31 December 2016, including
10,000 1,381 unutilised bank lines of S$7.4 billion.
5,909
5,000
2,144
0
Cash and short-term RMI Secured Unutilised Available Total
xed deposits receivables bank lines liquidity borrowings
Long-term debt 7,688

Short-term debt 5,983
Segmental review and analysis

Sales Volume (000 MT) Revenue EBITDA Invested Capital (IC) EBITDA/IC (%)
Segment 2015 2015 2015 2015 2015
S$ million 2016 Restated 2016 Restated 2016 Restated 2016 Restated 2016 Restated
Edible Nuts, Spices and
Vegetable Ingredients 1,569.7 1,549.2 3,981.1 4,227.2 331.8 393.5 3,642.7 3,463.0 9.3 11.5
Confectionery and
Beverage Ingredients 1,687.5 1,689.5 7,711.0 6,859.6 407.3 284.0 6,109.5 5,680.9 6.9 6.4
Food Staples and
Packaged Foods 9,496.1 7,904.9 6,110.8 5,391.2 330.2 212.1 4,522.1 3,230.6 8.5 6.7
Food Category 12,753.3 11,143.6 17,802.9 16,478.0 1,069.2 889.6 14,274.3 12,374.5 8.0 13.2
Industrial Raw Materials,
Ag Logistics
andInfrastructure 1,662.5 1,363.1 2,784.1 2,574.6 135.2 185.1 2,220.9 1,917.5 6.5 9.8
Commodity Financial
Services (CFS) 1$ N.A. (1.6) 10.6 153.8 82.6 (1.4) 24.7
1RQ)RRG&DWHJRU\ 1,662.5 1,363.1 2,784.1 2,574.6 133.6 195.7 2,374.7 2,000.1 6.1 18.3
Total 14,415.8 12,506.7 20,587.0 19,052.6 1,202.8 1,085.2 16,649.0 14,374.7 7.8 8.4
Note: IC excludes:
(a) Gabon Fertiliser Project (31 December 2016: S$224.8 million, 31 December 2015: S$209.8 million); and
(b) Long-term Investment (31 December 2016: S$148.4 million, 31 December 2015: S$269.2 million).
olamgroup.com 23
Economic
Group COOs review
EDIBLE NUTS, SPICES

AND VEGETABLE INGREDIENTS
Key highlights for the year
Earnings Before Interest, Tax, Invested capital Products

Depreciation and Amortisation (S$ million) Almonds
(S$ million) Cashews
400 393.5 4,000 Hazelnuts
360.5 3,610.0 3,642.7
346.7
331.8 3,363.6 3,463.0 Peanuts
320 308.5 3,200 3,049.2
Pistachios
240 2,400 Walnuts
Sesame
160 1,600
Beans (including pulses,
80 800 lentilsand peas)
Capsicums
0 0
Tomatoes
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Restated Restated Restated Restated Garlic
capital 1,391.8 1,850.4 1,587.1 1,415.0 1,421.0 Onions
Fixed Pepper
capital 1,657.4 1,759.6 1,776.5 2,048.0 2,221.7
Paprika
Chillies
Volume Invested capital Cumin
1,569,700 S$3,642.7 Turmeric
Metric Tonnes million Curry powder
Other spices
Revenue EBITDA
S$4.0 S$331.8 More information available
billion million online @ olamgroup.com

Peanut processing, USA. Hazelnuts being selected and checked according
tosize and quality, Turkey.
The Edible Nuts, Spices and Vegetable Compared with 2015, invested capital
Ingredients segment had a marginal in the segment increased by
volume increase of 1.3% in 2016 as S$179.7 million. The increase in xed
improved volumes from the Edible Nuts capital came from the acquisition of
platform, particularly peanut volumes, Brooks. Overall working capital
which grew due to the consolidation of increased slightly due to higher
results of the acquisition in the USA, inventory in peanuts and tomatoes,
and cashew volumes, were offset by offset by lower working capital in
lower tomato paste volume. Segment almonds due to lower prices. As a
revenues, however, fell by 5.8% mainly result, EBITDA to average invested
because of lower almond and tomato capital (EBITDA/IC) for the segment
paste prices. declined from 11.5% in 2015 to 9.3%
EBITDA declined by 15.7% in in 2016.
2016 mainly due to a lower contribution
from the almond and tomato
processing businesses. All other
businesses in the segment performed
better than in 2015.
The almond business, which mainly Onion processing, USA.
comprises upstream operations, was
impacted by overall lower prices in
2016. Almond prices, however, were
higher in the second half of 2016
compared with those during the rst
half of the year.
The tomato processing business
continued to experience margin
pressures arising from weak demand,
depressed market prices and higher
raw material cost compared with 2015.
The impact is expected to continue into
the rst half of 2017.
olamgroup.com 25
Economic
Group COOs review
CONFECTIONERY
AND BEVERAGE INGREDIENTS

Depreciation and Amortisation (S$ million) Cocoa
(S$ million) Coffee
450 6,500 6,109.5
407.3 5,680.9
360 5,200
322.6
270 275.6 284.0 3,900
268.5
3,246.9
180 2,600 2,346.6
1,913.9
90 1,300
0 0
2012 2013 2014 2014 2016 2012 2013 2014 2015 2016
capital 1,615.4 1,855.4 2,745.4 4,329.7 4,568.7
Fixed
capital 298.5 491.2 501.5 1,351.2 1,540.8
Volume Invested capital

1,687,500 S$6,109.5
Metric Tonnes million
Revenue EBITDA

Olam cocoa processing operation, Cte dIvoire. Cocoa butter being extracted from liquor, Holland.
Sales volumes in the Confectionery and Compared with 2015, the segment
Beverage Ingredients segment recorded an increase in invested
remained largely at during the year. capital of S$428.6 million, in particular
Although Coffee volumes were up and the working capital requirements as a
Cocoa processing volumes were result of higher coffee and cocoa
higher year-on-year due to a full year prices. Fixed capital increased in-line
consolidation of results of the acquired with the expansion in upstream
Cocoa Processing assets, supply chain activities in Tanzania and Brazil and
volumes in Cocoa declined as most of soluble coffee capacities in Vietnam
these became captive feedstock for and Spain.
processing. Supply chain volumes EBITDA/IC for the segment improved
were also affected by reduced cocoa marginally from 6.4% in 2015 to 6.9%
bean supply and quality for most of the in 2016.
year due to adverse weather conditions
in West Africa.
Revenues were 12.4% higher than
2015 due to the increase in the sales of
value-added cocoa products (cocoa
cake, powder, liquor and butter) as well
as the increase in prices and sales
volume in Coffee.
EBITDA grew by 43.4% as both Cocoa
and Coffee had stronger contributions.
Cocoas increase in EBITDA was due
to the consolidation of the results of the
acquired Cocoa Processing assets,
which performed better than
expectations due to improved product Olams coffee plantation in Tanzania.
ratios. However, these results were
offset by the lower contribution from the
supply chain business. Coffee
achieved higher EBITDA in 2016 from
the green coffee supply chain and
soluble coffee business in Vietnam
and Spain.
olamgroup.com 27
Economic
Group COOs review
FOOD STAPLES
AND PACKAGED FOODS

Depreciation and Amortisation (S$ million) Animal feed
(S$ million) Dairy
400 378.2 5,000 Grains
4,522.1
330.2
Wheat
320 296.0 295.2 4,000
3,691.3 3,612.8 Corn
240 212.1 3,000 3,075.1 3,230.6 Barley
Soybeans
160 2,000
Packaged foods
80 1,000 Edible oils
Palm oil
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Soybean oil
Sunower oil
capital 1,670.9 1,088.2 708.7 915.0 1,498.3 Rice
Fixed
capital 2,020.3 2,524.6 2,366.4 2,315.6 3,023.8 Sugar and sweeteners
Volume Invested capital

9,496,100 S$4,522.1
Metric Tonnes million
Revenue EBITDA

Rice milling to remove the husk and bran, Nigeria. Filling palm seedling bags at the nursery, Gabon.
Food Staples and Packaged Foods Overall invested capital increased by

segment volumes increased by 20.1% S$1.3 billion compared with 2015.
mainly due to higher volumes from Fixed capital went up mainly due to the
Grains origination and export acquisition of wheat milling assets and
operations as well as the wheat milling construction of animal feed mills in
operations post the acquisition of BUA Nigeria, expansion of wheat milling
Groups wheat milling assets in Nigeria. capacity in Ghana, and continued
The Rice, Sugar and Dairy businesses investments in palm plantations in
also recorded an increase in volumes Gabon. Working capital also moved up
as compared with the previous year. with higher volumes in Grains
Revenues grew by 13.3% in and Sugar.
2016 mainly due to volume growth and As a result of the strong performance
higher dairy, rice and sugar prices, part in EBITDA, EBITDA/IC for the segment
of which were offset by the adverse improved markedly from 6.7% in 2015
currency impact on Packaged to 8.5% in 2016.
Foods revenues.
The segment reported a robust 55.7%
growth in EBITDA as all platforms
recorded an improvement in EBITDA
over the prior year. Operations which
underperformed during the prior year
showed strong improvements in 2016.
Olams palm oil renery in Beira, Mozambique.
The edible oil rening and distribution
operations in Mozambique including
those of Acacia performed better than
in 2015. Rusmolco was protable for
the year while the dairy farming
operation in Uruguay recorded
signicantly improved operating
metrics and hence better results
compared with 2015. Packaged Foods
posted improved performance despite
facing headwinds during the year from
currency volatility as well as the
disruption of dairy and beverage juices
production in Nigeria after a plant re
inApril 2016.
olamgroup.com 29
Economic
Group COOs review
INDUSTRIAL RAW MATERIALS,

AG LOGISTICS AND INFRASTRUCTURE

Depreciation and Amortisation (S$ million) Cotton
(S$ million) Fertiliser
Rubber
250 2,500
Wood products
218.6 215.6 2,193.9 2,220.9
200 185.1 2,000 Gabon Special Economic Zone (GSEZ)
1,872.0 1,917.5
1,839.4
The Industrial Raw Materials, Ag Logistics
150 143.5 135.2 1,500 and Infrastructure volumes grew by
22.0% as a result of larger Cotton
100 1,000 volumes in 2016.
Revenues were up 8.1% compared with
50 500
2015 as lower sales of Wood Products
moderated the growth in revenue in
0 0
this segment.
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Restated Restated Restated Restated However, despite increased GSEZ
EBITDA/IC (%) 6.5 10.8 11.6 9.8 6.5 Working contribution, overall segment EBITDA
capital 1,507.7 1,043.6 974.2 911.9 1,212.7 forthe year declined by 27.0% due to
Fixed margin pressures in Cotton and
capital 686.2 795.8 897.8 1,005.6 1,008.2
Wood Products.
Overall invested capital grew by
S$303.4 million compared with 2015
Volume Invested capital dueto increased working capital in
1,662,500 S$2,220.9 Cotton from higher volumes and prices.
Metric Tonnes million Fixed capital remained unchanged as
reduced xed capital in GSEZ offset the
increase in investments in Rubber
Revenue EBITDA plantations in Gabon.
S$2.8 S$135.2 As a result of reduced EBITDA and higher
billion million invested capital, EBITDA/IC declined from
9.8% in 2015 to 6.5% in 2016.

COMMODITY FINANCIAL
SERVICES
Services
Market-Making and volatility trading
Asset management
Risk management solutions
Trade and structured nance
The Commodity Financial Services
segment or CFS registered an EBITDA
loss of S$1.6 million in 2016 versus
S$10.6 million in 2015.
Compared with 2015, invested capital
in this segment rose by S$71.2 million
with most of it deployed in the
funds business.
EBITDA Invested capital

S$(1.6) S$153.8 More information available
million million online @ olamgroup.com
olamgroup.com 31
Economic
Group COOs review
VALUE CHAIN REVIEW AND ANALYSIS
Overview
Sales Volume (000 MT) Revenue EBITDA Invested Capital (IC) EBITDA/Avg IC (%)
Segment 2015 2015 2015
S$ million 2016 2015 2016 2015 2016 Restated 2016 Restated 2016 Restated
Upstream 455.6 433.2 798.4 1,167.2 79.2 154.9 3,764.2 3,074.8 2.3 5.2
Supply Chain 9,863.1 9,370.2 10,496.2 13,080.4 503.5 599.9 6,537.7 4,851.9 8.8 12.3
Mid/Downstream 4,097.1 2,703.3 9,292.4 4,805.0 620.1 330.4 6,347.1 6,448.0 9.7 6.5
Total 14,415.8 12,506.7 20,587.0 19,052.6 1,202.8 1,085.2 16,649.0 14,374.7 7.8 8.4
Note: IC excludes:
(a) Gabon Fertiliser Project (31 December 2016: S$224.8 million, 31 December 2015: S$209.8 million); and
(b) Long-term Investment (31 December 2016: S$148.4 million, 31 December 2015: S$269.2 million)
Gestation mix (2016)

Invested capital EBITDA/ EBITDA/ EBITDA/
(S$ billion) IC (%) IC (%) IC (%)
3.8 2.3 6.5 8.8 6.3 9.7
Upstream Supply Chain Mid/Downstream

Invested EBITDA/ Invested EBITDA/ Invested EBITDA/
Capital IC (%) Capital IC (%) Capital IC (%)
Gestating 1.0 (2.2)
Partly contributing 0.7 1.2 3.4 9.9
Fully contributing 2.1 5.1 6.5 8.8 2.8 9.5
Expected EBITDA/IC Expected EBITDA/IC Expected EBITDA/IC
Target at steady state: at steady state: at steady state:
15-18% 10-13% 13-16%
A total of S$1.7 billion in Upstream and S$3.4 billion in Mid/Downstream

investments are still gestating (notyielding any EBITDA) and partly contributing
(not yielding to full potential yet).

As at end-2016, about 50.0% of the capital
invested in the Upstream and Mid/Downstream
parts of our value chain was either gestating or
partly contributing. Hence, there will be signicant
growth coming from these investments that
havenot started to yield or are not yielding to
theirfull potential.
Upstream
The Upstream segment registered a EBITDA Invested capital
year-on-year volume growth of 5.2%, (S$ million) (S$ million)
mainly coming from almonds and
Coffee. Revenue and EBITDA declined 250 4,000 3,764.2
by 31.6% and 48.9% respectively
in 2016. 208.8 204.9
200 184.4 3,200 3,074.6
The revenue decline was primarily 2,707.5 2,830.4
150 154.9 2,400 2,366.7
onaccount of lower almond prices.
EBITDA was dragged down by
reduced contribution from almond 100 1,600
79.2
plantations in Australia and the USA as
well as Wood Products, although this 50 800
was partly offset by improved
performance in NZFSU. 0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Invested capital in the segment Restated Restated Restated Restated
increased by S$689.6 million from EBITDA/IC (%) 8.7 8.2 6.6 5.2 2.3 Working
2015, mainly on account of higher xed capital 340.9 322.6 304.0 358.9 481.2
capital invested in almond, Coffee, Fixed
Palm and Rubber plantations. EBITDA/ capital 2,025.8 2,384.9 2,526.5 2,715.7 3,283.0
IC declined from 5.2% in 2015 to 2.3%
in 2016 on higher average invested
capital but lower EBITDA.
Of the S$3.8 billion invested capital
in2016, about S$1.7 billion was in
gestating or partly contributing assets.
These are primarily the Palm and
Rubber plantations in Gabon, Rice
farming business in Nigeria, as well
asCoffee plantations in Brazil, Zambia,
Tanzania and Laos which were both
gestating and partly yielding
investments.
The S$2.1 billion fully contributing
assets delivered a lower EBITDA/IC of
5.1% on a higher asset base in 2016
compared with 2015. These assets
now include NZFSU and Rusmolco
which were treated as partly
contributing assets in 2015 and had
not yet reached their full potential
in 2016.
Preparing the soil for the planting season, Nasarawa Rice Farm, Nigeria.
olamgroup.com 33
Economic
Group COOs review
Supply Chain
The Supply Chain segment recorded a EBITDA Invested capital
5.3% increase in volume due to growth (S$ million) (S$ million)
from Grains, Rice, Dairy and Sugar
trading, offsetting the reduction in 800 7,000
Cocoa as much of its volumes were 6,537.7
700.2
channelled for cocoa processing. As a 640 652.0 608.8 599.9 5,600 5,260.1
result of lower Cocoa volumes, revenue 4,842.1 4,936.3 4,851.9
declined by 19.8%. 480 503.5 4,200
EBITDA declined by 16.1% arising from

lower contribution from the Cotton, CFS 320 2,800
and Cocoa supply chain due to the

shift in bean volumes to captive 160 1,400
processing. However, invested capital
in the segment rose by S$1.7 billion 0 0
owing to larger working capital in 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Coffee, Cotton and Cocoa beans
carried as feedstock for processing. As capital 4,584.8 4,156.8 4,396.6 4,230.3 5,749.8
a result, EBITDA/IC dropped from Fixed
12.3% in 2015 to 8.8% in 2016. capital 675.3 685.3 539.7 621.6 787.9
Farmer spreading cocoa beans to dry in the sun, Cte dIvoire.

Mid/Downstream
The Mid/Downstream segment EBITDA Invested capital
recorded a strong growth of 51.6% (S$ million) (S$ million)
and 93.4% in volumes and revenues
respectively. The growth in volumes 700 8,000
was driven by larger volumes of 620.1
processed Cocoa products and our 560 6,400 6,448.2 6,347.1
from wheat milling. Revenues were up
as a result of these higher volumes. 420 4,800
EBITDA surged by 87.7% due to strong 330.4 3,862.6 3,794.0

315.3
280 290.9 3,200 3,238.8
contribution from Cocoa processing,
226.5
wheat milling in West Africa, soluble
coffee processing, peanut shelling as 140 1,600
well as sugar and palm rening. This
was partly offset by the drop in 0 0
contribution from tomato processing. 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Invested capital was lower by EBITDA/IC (%) 9.0 8.2 8.2 6.5 9.7 Working
S$101.1 million for the year on account capital 1,276.5 1,360.8 1,316.6 3,063.7 2,621.8
of higher xed capital investments Fixed
being offset by lower working capital. capital 1,962.3 2,501.8 2,477.4 3,384.5 3,725.3
The increase in EBITDA lifted EBITDA/
IC from 6.5% in 2015 to 9.7% in 2016.
About S$3.4 billion of invested capital
was partly contributing, generating a
signicantly higher EBITDA/IC of 9.9%
compared with the previous year. This
was due to the addition of the Cocoa
processing assets and the acquired
wheat milling and pasta manufacturing
assets well as Brooks, all of which had
performed very well during the year.
The fully contributing assets achieved
an EBITDA/IC ratio of 9.5%, slightly
below that for 2015 due to the
underperforming tomato
processing business.
Quality control checks at Crown Flour Mills, Nigeria.
olamgroup.com 35
Economic
Group COOs review
PRINCIPAL RISKS AND UNCERTAINTIES

Olam has a rigorous risk management framework, designed to identify and assess the likelihood
and impact of risks and to manage the actions necessary to mitigate their impact. The process
identies risks from a top-down strategic perspective and a bottom-up business perspective;
overall responsibility to monitor and assess risk lies with the Risk Office.
The Enterprise Risk Management or controls in place; residual risks are Scorecard is reviewed and updated for
framework denes 51 individual risks those that remain after mitigations to presentation to the Board Risk
across 11 categories. Each risk is the inherent risks are taken into Committee on a quarterlybasis.
continually evaluated for each business account. Each risk is assessed for The following table lists the individual
on both an inherent and residual basis. likelihood of occurrence and impact risk factors in each of the categories,
Inherent risks are the threat an activity and overseen by oneof the Board and describes the key controls and
poses if there are no mitigating factors Committees. The Enterprise Risk mitigations for each.
Risk Key controls and mitigation %RDUG&RPPLWWHHRYHUVHHLQJVSHFLFULVN

Trading risks
Price Risk Trading risks are controlled by regular monitoring of positions Read more about the Board Risk Committees
Basis Risk using industry-standard metrics. The annual risk budgeting responsibilities and members on page 16 of the
Structure Risk process denes position and risk metric limits to control Governance Report.
Arbitrage Risk exposures.
Derivative Risk
Liquidity Risk Olam hedges price risk on the worlds commodities exchanges,
both through derivatives and tendering.
Operational risks
Credit Risk1 Field operating control and primary sourcing infrastructure is in 1.
Read more about the Board Risk Committees
Counterparty Risk1 place in every country where Olam operates. responsibilities and members on page 16 of the
Stock Risk2 Governance Report.
Quality Risk2 Olams credit/counterparty rating system denes credit limits and
2.
Systems and Controls Failure controls, promoting fragmentation of credit exposure on short Read more about the Audit Committees
Risk2 tenors. responsibilities and members on page 17 of the
Fraud Risk2 Governance Report.
Project Execution Risk3 Insurance is taken to provide inventory cover as well as credit
Asset Utilisation Risk3 defaults. 3.
Read more about the Capital and Investment
Committees responsibilities and members on
page 20 of the Governance Report.
Currency risks
Transactional Currency Risk4 Olam operates in many geographies and is therefore exposed to 4.
Translational Currency Risk5 many different currencies. G7 currency hedging is performed by responsibilities and members on page 16 of the
a centralised Treasury function and local currency limits in the Governance Report.
origins and destinations are assigned to accommodate
5.
operational requirements. Read more about the Capital and Investment
Committees responsibilities and members on
page 20 of the Governance Report.
Agricultural risks
Weather Risk Olam employs advanced crop-monitoring technology and Read more about the Corporate Responsibilities
Pests and Diseases Risk agronomy experts, irrigation facilities, ood control measures and and Sustainability Committees responsibilities
Agronomy/GAP (Good crop insurance. and members on page 21 of the Governance
Agricultural Practices) Risk Report.
Political and sovereign risks
Asset Nationalisation Risk Olam has deep-seated presence in many of the countries in Read more about the Board Risk Committees
Selective Discrimination Risk which it operates, built over many years, and has consequently responsibilities and members on page 16 of the
Forced Abandonment Risk gained substantial knowledge of local practices. Olam maintains Governance Report.
Duty/Tariff and Export/Import global political risk and terrorism risk insurance.
Ban Risk
Terrorism/Kidnapping Risk

Risk category Key controls and mitigation %RDUG&RPPLWWHHRYHUVHHLQJVSHFLFULVN
Reputational risks
Food Safety/Hygiene and Reputational impact is often just one of several negative impacts Read more about the Corporate Responsibility
Product Recall Risk that can arise from poor practices. Olam has put in place a suite and Sustainability Committees responsibilities
Health and Safety Risk of policies, codes and standards to guide actions and behaviours. and members on page 21 of the Governance
Social Risk Labour These include the Olam Code of Conduct; the Olam Crisis Report.
Social Risk Livelihoods Escalation Procedure; the Olam Plantations, Concessions and
Environmental Risk Land Farms Code; the Olam Livelihood Charter; and the Olam Supplier
Environmental Risk Water Code.
Environmental Risk Climate
Change
Environmental Risk Food
Security
Regulatory and compliance risks
Market Compliance Risk6 Olams Market Compliance Ofce is a global function whose 6.
Bribery/Corruption Risk7. primary role is to ensure that we are fully compliant within all responsibilities and members on page 16 of the
Transfer Pricing Risk7. external regulation. Governance Report.
Taxation Risk7.
Other Regulatory Risk7. 7.
Read more about the Audit Committees
responsibilities and members on page 17 of the
Governance Report.
&DSLWDOVWUXFWXUHDQGQDQFLQJULVNV
Interest Rate Risk Olam has a strong base of long-term shareholders. The company Read more about the Capital and Investment
Funding Liquidity/Margin Call maintains strong banking relationships providing committed Committees responsibilities and members on
Risk banking lines, thereby assuring good liquidity. page 20 of the Governance Report.
Credit Metrics Risk
Activist Investor Risk
Short Seller Attack Risk
1DWXUDOSHULOV
Pandemic Risk Olam maintains insurance cover against risk of natural disasters, Read more about the Board Risk Committees
Fire Risk such as ood, re, earthquake and storms. responsibilities and members on page 16 of the
Flood Risk Governance Report.
Earthquake Risk
Hurricane/Typhoon/Storm Risk
Other
8.
Key Person Risk (succession Succession plans are in place to provide a second line of Read more about the Human Resource and
planning)8 leadership from with the companys Operating Committee and Compensation Committees responsibilities and
Cybersecurity Risk9 Management Committee. Olam employs IT security experts, as members on page 14 of the Governance Report.
IT Risk9 well as having in place IT cybersecurity infrastructure.
9.
Read more about the Audit Committees
responsibilities and members on page 17 of the
Governance Report.
Strategic risks
Strategic Risk All strategic risks are overseen by the ofces of the CEO and Read more about the Boards responsibilities and
COO, and by the Executive Committee. members on page 2 of the GovernanceReport.
olamgroup.com 37
SOCIAL
We rely on our people to grow our business
responsibly. Our operations impact communities
around the world. We strive to ensure that
LPSDFWLVSRVLWLYHIRUWKHORQJWHUP
CONTENTS:
42 Livelihoods
48 Labour
56 Food security and nutrition
60 Food safety and quality
Social
This section explores our achievements and challenges in 4 of our

material areas which focus particularly on social impacts: livelihoods,
labour, food security and nutrition, and food safety and quality.
Livelihoods Labour Food security Food safety

42 48 and nutrition and quality
56 60

We will continue to build and implement robust andd
effective frameworks, equip our teams with the right
ht
skills and work with the business leaders to ensure
everyone recognises their accountability.
Dr Christopher Stewart
Head of Corporate Responsibility andSustainability
Q&A with Dr Christopher Stewart, Head of A less talked-about issue is the challenge of managing a
workforce on plantations in highly rural areas of developing
Corporate Responsibility andSustainability countries. In Gabon and Tanzania, the majority of our
workers have never held formal employment and many are
How did Olam perform against its social goals in 2016? functionally illiterate. This makes it challenging to instil both
Our vision is end-to-end sustainable supply chains by 2020, their rights and responsibilities: for example, it takes time to
which is a huge challenge but we are making headway. teach safety processes in places where no such culture
Safety improves year-on-year; we are reaching more exists. Creating a positive work ethic (including dealing with
smallholder women; have made progress on a major absenteeism), and instilling safe behaviours are as essential
programme to grant security of land tenure for cooperatives as capacity and skills building. Identifying and promoting
in Gabon; and have advanced nutrition and crop local leaders is invaluable in encouraging fellow workers to
diversication initiatives. uphold our standards. Disputes can occur, which is why
wehave made considerable efforts to establish worker
Which social issues are stakeholders most representation groups.
concernedwith?
Many crops we sell are grown in emerging markets, which
Will you be changing your strategy in 2017?
brings well-known risks. Customers, NGOs, nancial No, we have a clear strategy with 4 overall objectives:
institutions, donors and others want to know how we mitigate sustainability risks to the business, environment
managethem, so engagement happens across products, and society
geographies and functions. promote increased volumes of sustainably sourced and
Issues raised in 2016 include: the ongoing efforts to processed products
eradicate child labour in third-party supply chains, including use land and water resources efciently and minimise
cocoa and oil palm; and ending the forced mobilisation of GHG emissions; and
workers in Uzbekistan for the cotton harvest. promote better livelihoods, good labour practices and
However, many of these issues are closely connected to food security.
wider issues such as rural poverty, lack of community To achieve these, we will continue to build and implement
infrastructure or government policies so cannot be robust and effective frameworks, equip our teams with
addressed in silos. Equally, solutions require a multi- theright skills and work with the business leaders to ensure
stakeholder approach which is why we seek to collaborate everyone recognises their accountability. Monitoring,
with peers and other partners. We have over 30 partners for reporting and communicating are essential for us to measure
the Olam Livelihood Charter (OLC) programmes alone. and improve performance: we are already seeingthe
benets of the new data collection system weimplemented
What social challenges do you face in 2017? in 2015. And, nally, forging effective partnerships makes our
We need smallholders to see farming as a viable livelihood business stronger, more competitive and more effective
so we can secure supplies. Therefore we need to help them at scale.
improve incomes through better yields and quality. Setting up
training sessions for smallholder farmers in Good Agricultural
Practices is the easy part. Implementing them in the eld is
harder, requiring ongoing community engagement and
cultural sensitivity. More information can be found on sustainability progress in our
GRI Report and Olam Livelihood Charter on olamgroup.com.
olamgroup.com 41
Social
Our material areas
LIVELIHOODS
Olam depends on 4.33 million farmers, as well as wider agricultural communities,
forour volumes. We need them (especially the younger generation) to view farming
and rural processing as viable sources of income. We focus on catalysing economic
opportunity, inclusion, and good health. We call this unlocking mutual value.
Highlights for the year
Key 2016 focus areas

Continue to support large and
small-scale farmer suppliers,
inparticular through the OLC
Promote gender equality
302,552 55,192 190,000

and opportunity
Encourage good health and
wellbeing among communities
Smallholders embraced Women farmers People reached under and workers
by the OLC theOlam Healthy
Living Campaign Key sector collaborations
andcommitments
Sector initiatives include
CocoaAction, WCF Cocoa
Livelihoods Programme, Sustainable
Rice Platform, and Partnership for
Gender Equity (Coffee)
Over 30 partnerships to
19 US$161.58m
Total nancing to
32,954 improve livelihoods
We are guided by
Countries with New farmers in 9 countries Olam Livelihood Charter
OLC initiatives OLC smallholders registered on Olam Farmer
Olam Supplier Code
Information System to bring
the total to more than 65,000 Olam Environment Policy
farmers across 13 countries Olam Sustainable Palm Oil Policy
Olam Code of Conduct
Relevant SDGs UN Global Compact

While external factors such as weather can improve yields, productivity Olam Cocoa trainer, Benson Kelesin from Baianga Village, Papua New Guinea, shows farmers
training is crucial. Jose Norbey Sanchez, one of the 562 Colombian coffee from the Wadao group how to prune cocoa trees up to the height of 3 metres using an
farmers who has received training since 2015, almost doubled his yield of extended pool pruner. One of our project officers, Schola Jenkihau, is monitoring the eld
green coffee per hectare in 2016. officers training skills.
Understanding life for rural where not all support may be required. Empowering women and improving
communities in emerging markets Our full 2016 OLC report can be found coffee quality in Brazil
on olamgroup.com/resources.
Olam buys from around 36,600 In many communities where Olam
large-scale and 4.3 million small-scale works, women have vastly unequal
farmers. While all face many of the
On the ground support strengthened decision-making power, control over
same issues from climate change to by collaboration household spending, and access to
nancial shocks smallholders are Around 850 eld ofcers work year education, nance, land and inputs.
much more vulnerable. round with smallholder communities. Yetif women participated equally in
Partnerships are crucial for harnessing theglobal economy, annual global
Crops such as cashew, coffee and
expertise and achieving scale. In 2016, GDPwould increase 26% in 10 years
spices grow best in developing
we had over 30 customer, NGO, (McKinsey Global Institute 2015).
countries in Africa, Asia and South
certication, trade, foundation and
America where GDP is low and rural Coffees biennial cycle can mean yields
development organisation partners
infrastructure, including electricity, vary widely from year-to-year, impacting
helping us to deliver 44 OLC initiatives
running water and roads, is poor. These farmer income. New techniques can
(see olamgroup.com for a full list of
farms are small (the biggest equate counter this, but not everyone is open
partners, associations and
tojust 6 football pitches (5 hectares) to change. Our eld ofcers in
memberships). We also work with
but are typically much smaller) and Carlpolis, Brazil, recognised that
many certifying bodies and, in 2016,
farmers often have limited access to womens involvement in post-harvest
24% of OLC tonnage was certied.
education and nance. All of this processing signicantly improved
impacts on how much the farmer can quality. Working with the International
Helping farmers in Papua New Guinea
grow and earn. Womens Coffee Alliance and the
Since 2014 in Madang, Olam Cocoa Governments Department for Family
Olam Livelihood Charter (OLC) and Rainforest Alliance have been andSocial Development, training with
6years of impact working with cocoa farmers to improve womens groups was held in 15
sustainability standards, which has locations. Three of the 77 women
In 2010, we identied 8 economic, improved yields, quality and
social and environmental principles to involved won an award from IAPAR,
traceability. Challenges in 2016 theAgriculture Institute of Paran
help smallholder communities become included low rainfall, ongoing problems
commercial rather than subsistence State, for the quality of their coffee.
with poor transport infrastructure, and
farmers. These were enshrined in the educating farmers due to low literacy
OLC which today supports around levels. The implementation of Good
302,552 smallholders. Due to a change Agricultural Practices and ecosystem
in strategy, we are no longer directly restoration has helped the
buying from 66,000 smallholders in programmes 1,784 farmers, who also
Zambia. However, many other received a premium for their
programmes are either on track for certied volumes. Read more in the Gender Hub on
OLC status or operate in communities olamgroup.com.
olamgroup.com 43
Social
Our material areas: Livelihoods
Teaching cotton farmers to count

If farmers cannot count, it is difcult
forthem to manage their nances.
InCte dIvoire, Olam cotton subsidiary
SECO runs literacy courses in remote
farming communities to teach basic
reading, writing and maths to those
who did not have the opportunity to
attend school. Between 2012 and
2016, the courses were attended by
624 women and 1,095 men.
This support is part of a much wider
OLC programme, certied by Cotton
Made in Africa, which in 2016 received
a highly commended recognition
under the Unilever Global Development
Award, supported by Business Fights
Poverty. The judging panel reported the
programme has the potential to Rice farming families in Nigeria gaining access to nance.
impact an entire industry and
admirably demonstrated an effective
and sustainable business model.
Bypassing middle men Helping to link farmers
InFebruary 2017, the programme tounlock mutual value tobanks
washighlighted by the Business and While we have had direct farmer In its efforts to improve food
Sustainable Development Commission1 relationships for cashew in Africa, securityand reduce rice imports,
in a lm hosted on the Economist Films inVietnam we have previously been the Nigerian Government has
website2 within the Global Compass sourcing through buying agents. established a number of nancial
series. Over 1,060 farmers are now being schemes to help farmers invest and
Read similar case studies for other trainedand certied under Lagrai improve yields. These are supported
products at olamgroup.com. The Water, Cashew Producer Cooperative. by various banks, International Fund
Land and Climate Change sections of Inaddition tothe Fairtrade premium for Agricultural Development (IFAD),
this report are also closely connected and pre-nancing from Olam, USAID and the Nigerian Ministry
to farmer livelihoods. thefarmers (and Olam) will benet ofAgriculture. As part of our
nancially by eliminating the smallholder outreach programmes
middlemen, whilst full traceability we have been hosting meetings
confers multiple benets. across the villages to help farmers
access the nance onoffer.
Overall,we have trained over
3,500smallholders in Good
Agricultural practices.
More information available

at olamgroup.com
The SECO programme

Why we encourage smallholders to form cooperatives
has the potential to Working with cooperatives simplies our logistics. We avoid collecting crops
impact anentire from individual farmers inrural locations, and peer-pressure helps keep up
good practices. Cooperatives help us understand where to focus investment,
industry andadmirably such as in warehousing for the crops. For the farmers, they have greater
demonstrated negotiating power and benet from group training.

Cooperatives also play a crucial role in rolling out the Olam Supplier Code.
aneffective and For those farmers with low literacy, weprovide pictorial posters for display
oncooperative buildings, while cooperatives are also empowered to sign
sustainable business onbehalf of the farmers, auditing to ensure compliance. The challenge
model. nowis reaching farmers who are not yet organised into farmer groups
andhave very low productivity, which someNGOs have rightly highlighted
1
asa concern. This requires amulti-stakeholder approach.
businesscommission.org
2
lms.economist.com

Peanut harvesting in Georgia, USA. Cashew picking, removing the nut from the fruit. Smallholder farmer preparing cocoa beans for natural
fermentation.
Continuing to invest in processing

Setting up processing in emerging Measuring programme success
markets brings benets to Olam and
In September and October 2016, a survey was undertaken with 416 cocoa
communities. Cashew processing
farmers in Cte dIvoire.
offers signicant levels of employment
for women, often in regions where there 98% 70%
is little alternative we employ 15,000 of cocoa farmers report being are satised with thepayment for
people in 20 cashew processing units satised or very satised with the cocoa and 21% are very satised.
in Africa and Asia, around 80% of training provided.
whom are women. In 2016, a new
facility in Vizag, India, has generated 58%
direct and indirect (contract) 79% of cocoa farmers believe they
employment for 750 women. of cocoa farmers report an increase arewealthier this year than the
in the amount of money earned from previous year.
Investing in processing close to the
cocoa since they started working
farmers means they see a ready
with Olam.
market for their crop and want to sell
toOlam. It also reduces transport and
80%
of farmers have been trained
environmental costs for our business.
Examples include cashew processing
81% onhealth and safety at the farm.
of cocoa farmers report an increase
in Cte dIvoire and Mozambique and
in the amount of cocoa produced
our sugar and spices processing
since they started working 79%
in India. of farmers have been trained
with Olam.
ongood labour practices.
Supporting economic inclusion
indeveloped nations Olam Farmer Information System provides unparalleled transparency
Olam recognises that large-scale A real game-changer in the next few years will be the Olam Farmer
farmers can also face cash ow and Information System (OFIS), which manages the rst mile of Olams supply
crop challenges. So, for example, we chain. Working with smallholder farmers and mobile technology, we survey
support many tomato, garlic and onion and register their farms and local social infrastructure. OFIS is also able
growers with improved varieties that tocollect and analyse transaction data from the farm onwards, as well
our teams have developed. We also asallfarmer training records. This data means that users have unparalleled
strive to be a good counterparty. transparency into our smallholder supplier network and sustainability
initiatives. It allows us not only to give more farmers tailored support but to
Chuck McGlamory at the Doster Peanut
monitor and learn which interventions such as training via farmer schools
Company, a buying point owned by
versus demonstration plots have the biggest impact on yield improvements
Olam subsidiary McCleskey Mills in
and other outcomes. In just 2 years, OFIS has registered over 65,000 cocoa,
Georgia, USA, explains that, during the
coffee and rubber farmers in 13 countries around the world.
harvest season, as many as 30 peanut
growers can be sending their volumes
daily which need inspecting, quality
testing and unloading: Weensure that
each grower is treated equally no
matter what volume he supplies,
otherwise we lose the right tobecome
his buyer of choice.
olamgroup.com 45
Social
Our material areas: Livelihoods
Ensuring access to safe water Encouraging employees to put their

andsanitation health rst
Olam is addressing water, sanitation Our focus on health is not just for rural
and hygiene (WASH) access for communities. Increasingly, we see the
employees in the workplace, impacts of poor nutrition and sedentary
particularly in plantations in highly rural lifestyles across both developed and
emerging economies. Discussions developing nations.
withother agri-business and forestry In the USA, our team embraced the
companies within the World Business 2016 World Health Day theme of Beat
Council for Sustainable Development Diabetes, inviting a nutritionist to the
(WBCSD) uncovered the need for ofce to speak about diabetes,
further sector-specic WASH guidance launching a walking club, and hosting
in agricultural settings. aHidden Sugar Demo unveiling the
To support the development of initial high sugar levels in the most commonly
guidance and explore opportunities for consumed foods.
best practice development, a member Meanwhile, in Tanzanias Dar es
of the WBCSDs water team undertook Salaam head ofce, a nutritionist
a 1-week learning mission to Olams delivered awellness talk on how to
palm oil plantations in Gabon in choose and keep a healthy lifestyle.
June 2016. Voluntary medical check-ups were
Olam wood subsidiary, Congolaise Industrielle des
Bois, distributing mosquito nets. The plantations employ more than provided anda blood donation station
6,500 people, primarily from rural was set upcourtesy of a local
Helping to deliver good health villages which have no running water. blood bank.
andwellbeing in Olam operations Abaseline assessment was conducted The Zika virus also emerged in
andrural communities in collaboration with local staff, Southand Central America in 2016.
Life expectancy in developing countries mapping WASH provisions already put Weimmediately issued guidance
remains low, compounded by poor in place, and identifying action points. toemployees and we are pleased
nutrition and lack of access to During the mission, it was revealed that toreport that nobody was impacted.
healthcare. This is not just a large part of absenteeism was Inaddition to personal protection,
unacceptable for the affected attributed to water-related and employees were advised to empty,
individuals and their families, but has water-borne diseases. clean or cover containers that can
adirect economic cost for the The action points are being developed holdwater, such as buckets, ower
individual and the country. into a work plan for implementation potsortyres, so that places where
In 2016, we continued to roll out the during 2017, which will provide mosquitoes could breed
Olam Healthy Living Campaign. additional focus on sanitation provision, were removed.
Teamsin numerous countries held along with employee awareness-raising
sensitisation sessions on how to on hydration and heat stress.
prevent malaria, diarrhoea and other
common diseases. World Malaria Day
on 25 April was a focus of activity, and
by the end of the year we had reached
104,000 people in Africa with
sensitisation, screening and treatments:
Republic of Congo Wood Products
team, Congolaise Industrielle des
Bois, distributed treated mosquito
nets to personnel
Cte dIvoire Cocoa and Tanzania
Coffee distributed nets to cocoa
cooperatives and their communities
Ghana Cocoa donated malaria
treatment drugs to local
health services.
At our own large-scale palm and
rubber plantations in Gabon, we have
built modern, well-equipped clinics
(staffed by a permanent medical team)
providing free healthcare to over In 2016, Olam reached 106,700 people with HIV and AIDs awareness and prevention workshops, which included
6,500 employees. this workshop with cashew communities in Koboko village, Cte dIvoire.

Progress on goals
REMHFWLYHV 2020 target 2016 achievement 2XWORRNIRUWDUJHW
*2$/(FRQRPLFRSSRUWXQLW\DQGLQFOXVLRQ0DWHULDODUHD/LYHOLKRRGV
6PDOOKROGHUIDUPHUVDUH Bring 1 million hectares under the 302,552 farmers over 671,784 ha On target
supported through the Olam OLC with an estimated 500,000 (Due to a change in business strategy, we are
/LYHOLKRRG&KDUWHU2/& farmers. no longer sourcing directly from 66,000 OLC
principles cotton farmers in Zambia).
1.2. Suppliers comply with 100% of priority products covered All priority products are working with suppliers On target
the Olam Supplier Code bythe Supplier Code: cashew, to implement the Supplier Code.
cocoa, coffee, cotton, hazelnut,
58% of priority product volumes procured by
palmand rubber.
origins in FY16 are covered by the Olam
Supplier Code.
1.3. Women are economically Support 100,000 women to access 55,192 women farmers under the OLC. On target
empowered within our supply economic opportunities, including
Cte dIvoire cotton: 688 farmers wives
chain female farmers, processors,
vegetable projects and business training
distributors, and workers supported
or employed by Olam. Cte dIvoire cocoa: 800 farmers wives
fortied cassava projects and business training.
Around 11,600 women employed in the cashew
supply chain in emerging markets.
Data collection process being reviewed
regarding other women empowered,
e.g. distributors.
(OLPLQDWLRQRIFKLOGODERXU No breaches in compliance reported 1 breach of Olam child labour standards on On target
or observed in audits. plantations was identied by Internal Audit.
Corrective action has been taken to ensure legal
age restrictions are observed, and that
age-appropriate roles are assigned.
At the time of writing the FLA had not issued its
audit report for the 2016 hazelnut harvest.
Nobreaches were identied by the FLA in the
cocoa monitoring.
1.5. People have improved 750,000 beneciaries, including an 302,552 farmers have beneted from livelihood Behind target
livelihoods potential through estimated 500,000 smallholders, support through the OLC.
enhanced skills, economic plusother beneciaries of
Appropriate metrics for assessing beneciaries
UHVRXUFHVDQGLQIUDVWUXFWXUH capacity-building, cooperative
of Olams projects (including dependents of
support, school support, access
OLC farmers, and non-OLC livelihood projects)
tonance, producer goods, and
will be explored in 2017.
economic infrastructure initiatives.
*2$/*RRGKHDOWKDQGZHOOEHLQJ0DWHULDODUHD/LYHOLKRRGVVRPHRYHUODSZLWK/DERXU
(QVXULQJSURYLVLRQRIDFFHVV 100% of Olams direct operations Leading the development of guidance on On target
to health, water and sanitation arecompliant with the Olam WASH employee WASH access in agricultural and
LQIUDVWUXFWXUHDVDPLQLPXP Standard. forestry operations with WBCSD. WASH eld
meets the Olam WASH Standard study conducted in Olams palm plantations,
Gabon by Olam and WBCSD.
Learnings to be implemented in FY17 and rolled
out to all Olam plantations.
2.2. People have improved health Olam Healthy Living Campaign Reached 190,000 people in Africa. On target
and wellbeing positively impacting on 250,000
people, including community
beneciaries of health, water and
sanitation infrastructure, health
education campaigns, HIV testing,
health check-ups, access to
insurance initiatives, and
similarservices.
olamgroup.com 47
Social
Our material areas
LABOUR
We depend on the engagement, motivation and safety of our workforce to create
responsible growth. Equally, we are working with suppliers to ensure that human
rights are respected in their supply chains.

Employee engagement
andtalent development
Zero-harm workplace
Human rights across our own
69,772 95 203,696
andthird-party supply chains
Key sector collaborations

Full-time, seasonal, New managers trained in OLC farmers trained in andcommitments
contract and the CEO Core Process good labour practices CocoaAction help eradicate
temporary workers child labour
International Cocoa Initiative
Workforce Gender diversity of full-time Managerial talent by region Fair Labor Association (FLA)
employees partnership to eliminate
5% 5% exploitationin the cocoa and
50% 50% 26% 74% hazelnut supply chains
2% 41%
12% We are guided by
3% UN Declaration on Human Rights
ILO Declaration on Fundamental
32%
Principles and Rights at Work
Full-time 35,045 Men Olam Plantations, Concessions
Seasonal, contract Women Africa 961 andFarms Code
or temporary 34,727
Asia 734 Olam Health and Safety Policy
Australia 67 Olam Supplier Code
Europe 283 Olam Livelihood Charter
Relevant SDGs Middle East 37 Olam Code of Conduct
North America 112
Fair Labor Association
South America 112
afliate membership

Employee engagement
Q&A with Joydeep Bose, President andGlobal Head,
Human Resources
How do you see the role of One way is through our signature In this way, they receive feedback
HR at Olam? processes that cut across all and can reect on what went well,
partsofthe organisation. These and what did not, drawing on the
We focus on working shoulder-to-
arehigh-impact initiatives that strengths and experiences of others.
shoulder with business heads and
differentiate us from our competitors.
the leadership team. HR has the
responsibility to manage the
Our Core Process brings together How do you maintain engagement
talent-related risks of our business
new managers, usually within their among your employees?
rst 6 months, to have a 4-day We measure engagement rates
and foster the Olam values. Atthe
training session with our CEO1. In every2years. Currently, it is at 77%,
same time, with guidance from our
these sessions, Sunny, and other down from 83%. We believe it has
CEO and the leadership team,
leaders in the organisation, take them dropped because our teams have
weare focusing on how we want to
through the business and Olams had to navigate strong commodity
shape the organisation going forward
values and culture. We have close headwinds, plus acquisitions can
from a cultural perspective as
toa dozen signature processes to be unsettling.
wellas ensuring we have a set
build a shared experience across
oflasting shared values and vision One way in which we have been
various aspects of our business.
forthe company. addressing this is through our
In2016, 95 employees attended
Core Process sessions. revamped performance management
How important is culture? framework Aspire, which no
It is nota soft, touchy-feely matter but How do you develop leadership? longerhas ratings, so that staff
rather a fundamental part of our conversations can happen without
Leadership for Olam embodies the
business. We realised early on in our any anxiety.
3 major elements of our culture.
journey that our unique culture was Aspire is geared towards making the
When we assess an employees
what has driven and will continue to employee the chief beneciary of the
leadership ability, we look at
drive our business growth, allowing performance management process
whetherhe or she is risk-taking,
us to gain a competitive advantage not the organisation or his or her
entrepreneurial, and has an
inthe marketplace. boss. Aspire aligns feedback on
ownership mindset in taking
This unique culture included, rstly, accountability for outcomes. performance across the business,
being very entrepreneurial; secondly, taking into account personal
In our industry, you can get buffeted
demonstrating a high level of stretch development and career progression.
by external challenges outside your
and ambition; and thirdly, ensuring The process responds to 3 key
control. But it is important for our
every individual in the company questions for employees. Firstly,
leaders to deliver, regardless of
takesstrong ownership of their work. amIdoing a job that is meaningful?
whatis happening around them.
Thesefactors have underpinned our Secondly, how am Icurrently
success so far and we believe this With that in mind, we create an
performing in my role and what
very same culture will propel environment for employees to display
canIdo to improve? Thirdly, what
us forward. leadership values, to blossom and to
does the future hold for me in the
succeed. When we hire employees,
company? The process begins with
Considering Olam is so diverse and we look for t and aptitude for these
discussions at the beginning of the
large, how do you align the culture values. Some people prefer working
year between the individual and the
across the entire organisation? in a very top-down environment, but
manager on the meaning of the
thats not Olam.
It comes down to a unifying culture individuals role. Throughout the
andvision both of which are Empowering employees is a key restof the year, we will have
veryclear. We want to be the engagement driver. Within a safety regularconversations on the
mostvaluable and differentiated net, we typically give responsibilities progress against their targets.
agri-business globally. This has earlier than at other organisations
This system has been in place for a
beenwell received by the entire such as dening nancial and
year and a half, and we believe it will
organisation. We also ensure that all decision-making terms.
help our employees engage more
employees in the company, whether We also support our leaders with the company in the future.
they are from Colombia or Singapore, throughout their career journey with
should have a similar experience astrong mentoring culture. Managers
working in the organisation. at all levels are trained to coach
andhave constant communication
sessions with their reports.
1
Sunny George Verghese
olamgroup.com 49
Social
Our material areas: Labour
When we assess an Global gender breakdown in our primary workforce (%)

employees leadership
Africa Asia Australia
ability, we look at
whether he or she
isrisk-taking, M F M F M F
entrepreneurial, and
has an ownership 81 19 55 45 75 25
mindset in taking
accountability for Europe Middle East North America
outcomes.
M F M F M F
65 35 90 10 71 29
South America
Nurturing regional talent

Wherever possible, we are committed
to employing locally and building
M F
capacity, although it can be a
challenge in emerging markets.
Weinvest from the ground up and, over
78 22
the years, we have built a robust early
career hiring and training programme.
In 2016, we hired more than 50 trainees
across Africa in Sales, Manufacturing
and Finance. We believe that this pool
of talent will be our pipeline for the
future. The Africa Finance Trainee (AFT)
Programme is one such initiative and
isdesigned to provide meaningful
experiences through exposure to a
variety of Olam operations. In 2016,
werecruited 8 qualied accountants
from Kenya and Cameroon.
Catalysing change in Africa through
scholarships
Olams scholarship programme
supports up to 10 African post-
graduates each year to study
atHarvard Business School, the
London School of Economics and
Political Science, INSEAD and the Bankole Makanju is a Master of
LeeKuan Yew School of Public Policy. Business Administration
Our ambition isto see these graduates Student at the Harvard Business
School in Massachusetts. Read
catalyse change through business, his article on olamgroup.com,
economic development and good How to maximise Africas
governance in Africa. demographic dividend.

Designing top class courses and an academy
The Almonds team in Australia worked with HR and one of the largest
education providers in Australia TAFE to develop a tailored diploma
course for the Irrigation Controllers and Operations Supervisors. Run over
1-2 years, it is based on specic job competencies and provides the eld
teams with a development pathway leading to a recognised qualication.
Ithas been well received by the teams and in 2016 it led to Olam being
recognised by the TAFE as its Employer of the Year.
October 2016 marked a milestone for the Manufacturing and Technical
Services (MATS) function with the launch of its virtual Academy a purpose-
built learning platform. The comprehensive curriculum is intended to help
increase knowledge and skills, and ultimately help employees improve their
personalperformance and prepare for the next career opportunity.
Almonds Australia TAFE Certicate IV graduates who

have completed the diploma course for Irrigation
Controllers and Operations Supervisors.
Our shared values

Our 6 values and everyday behaviours build a distinctive culture, shaping how
we work, and set the standard for what it means to be part of Olam
Entrepreneurship Stretch and Ambition Mutual Respect and

We dare to dream Our passion for Teamwork
doing more We treat each other the
way we want to
be treated
Rob Wheatley (right), Vice President, Almonds,

receiving the Employer of the Year Award from
Ownership Integrity Partnerships theSunraysia TAFE Institute in Australia.
We take responsibility as We stay true to what we We strive to develop
if we were the founders believe, say and do positive and long-term
of the business relationships with
our partners
Ensuring a safe workplace developed a new Safety Induction 2014). This data now starts to include a
Olam is committed to providing a Programme. Some emerging market wider view of the Olam world and
healthy and safe workplace for our countries do not have the same includes some key primary upstream
employees, contractors and visitors. regulatory frameworks for safety so we processing plants, warehouses and
Our vision of embedding a zero harm must be constantly vigilant and reinforce plantations in addition to the 69 core
culture is delivered through safety the importance of safe behaviour manufacturing plants which are known
leadership and embodied in Our including regular audits and review. as Tier 1 (See the goals table for the
Shared Values. Our top 100 facilities now report specic targets for processing and
leading and lagging safety indicators Olam-managed plantations, concessions
By the end of 2016, most employees and farms.) Unfortunately, while it was
had received training through our and we are progressively extending this
to all our key sites processing, our lowest incident fatality rate in 5 years,
internal programme A Safe Olam we experienced 4 fatalities in 2016,
which is based on the elimination of warehouses and plantations. Whilst
stillnot where we want to be, we are which all took place in Africa. Three were
unsafe conditions and unsafe due to non-observance of safe working
behaviours. The remaining employees making steady progress in changing
behaviours and reducing safety practices, and the fourth was due to a
had localised focused training relating road accident. All incidents are fully
to specic risks and hazards. For new incidents. The Lost Time Injury
Frequency rate was reduced to 0.43 in investigated and any action
or returning seasonal workers, we have points addressed.
2016 (from 0.60 in 2015 and 1.15 in
olamgroup.com 51
Social
Respect for diversity from the 2,000-strong team. At the end productivity and what the customer,
Although diversity has always been of 2016, the union had made a formal and ultimately the consumer, is willing
encouraged in Olam, we recognise representation to the Ministry of Labour to pay. We operate in accordance with
that we did not have a formal policy or over the redundancy process. However, all payment laws but, rather than just
strategies for implementation. By 2020, the independent advisory body on relying on the minimum wage, we
all businesses with more than 100 labour affairs (Le Conseil National du areexploring productivity-based
employees must have a documented Dialogue Social) cleared our process incentives to make our operations
and reported diversity strategy. A draft as fair and correct. moresustainable and better able to
withstand competition. This in turn
policy with strategy guidance is Wages and incentives for workers
currently being reviewed. secures jobs in the region.
A considerable proportion of Olams
workforce are engaged in relatively Indeed, this has been recognised by
Respect for workers rights low-skilled plantation work or manual to the Government in India, where the
Our commitment to human rights semi-manual processing. These are Labour Department has classied the
isguided by the United Nations often located in regions that have had cashew industry under productivity-
Declaration of Human Rights, the ILO very little structured work experience, linked wage to help motivate workers.
Declaration on Fundamental Principles which can mean that, after payment, a This is denitely helping to improve
and Rights at Work and related few workers may not return until they productivity as seen in our 3 cashew
international covenants. have spent their wages. Couple this processing facilities at Amalapuram,
with high labour needs for products Janakiramapuram and
We commit to the following labour Gajapathinagaram. We are paying
practices across our supply chains: such as cashew (we employ around
15,000 people in processing across ourworkers above the Government
Compliance to relevant labour Asia and Africa) and we have to stipulated wages over unit of output.
national laws and international balance wages with the cost of
agreements (covering wages,
working hours and conditions,
freedom of association, collective
bargaining, no discrimination, gender
and age equality)
A grievance mechanism accessible
to all workers without retribution
More HR information can be found in
An accessible communication our GRI Report on olamgroup.com.
framework of policies for
the workforce
The application of these
requirements to contracted, seasonal
and migrant workers where relevant.
As with any business, restructuring is
sometimes necessary. Whenever this
occurs we seek to ensure that
employees and their representatives
are given notice of any signicant
changes. This may vary between
countries and also on the signicance
of the change, so it might be 24
weeks or a few months. Based on data
from our key operating countries, at the
end of 2016, about 30% of our primary
workforce were covered by collective
bargaining agreements. In early 2017,
Olam Gabon signed a collective
bargaining agreement with our palm Members of the USA GROW initiative at their mentoring mid-point event.
and rubber plantation workers over
9,500 people. Globally Reaching Olam Women (GROW)
Following the introduction of GROWs mission is women driving aglobally inclusive workenvironment.
mechanisation to increase output With 116 members (both women and men) in the USA, the employee
andefciency at our Bouak cashew resource group and mentoring programme spans all business units and
processing facility in Cte dIvoire, our functions. In 2016, the group expanded intoCte dIvoire and Uganda.
team met with union and government Areas of focus include communication, time management, negotiation skills
representatives regarding the and calculated risk-taking.
redundancy of around 150 employees

Addressing human rights Tackling exploitation of adult workers Update on Uzbekistan cotton
in third-party supply chains
issues inthird-party A number of investigations by NGOs
Cotton is a key source of income
forUzbekistan. In recent years,
supplychains into the palm industry have uncovered thecountry has made progress in
Olams sourcing network of over human rights abuses. In 2016, we eradicating child labour from its
4.33 million farmers, of whom the vast reduced our suppliers from 48 to 14 cottonharvest, thanks toa programme
majority are smallholders in emerging based on our Supplier Code risk supported by ILO and the World Bank.
markets, means that eliminating poor factors. Although our Supplier Code However, the international community
labour practices in our supply chains is clearly stipulates that third-party continues tobe concerned by reports
an ongoing focus. Poor practices suppliers should ensure human rights of civil servants being forced to pick
include the potential for: are protected, we are updating our cotton due to a lack of mechanisation.
policies in 2017 to include the explicit Alongwith other international cotton
Forced adult labour merchants, Olam has chosen to
industry term no exploitation and will
Child labour roll out third-party verication of mills maintain our sourcing (at low levels)
Poor management practices, such as at risk. and attempt to inuence positive
not providing protective equipment change in the supply chain. As well
or unfair working hours or pay. aslobbying collectively with our peers,
wewill be stepping up engagement
with the ILO and the World Bank
directly in 2017 to maintain momentum
in changing labour practices.
See page 70 for more information For more information on these issues,
on the palm supply chain. please contact crs@olamnet.com or visit
olamgroup.com/sustainability.
Unlike other major cotton growing origins, Uzbekistan does not have mechanised harvesting for its elds so the cotton must be hand-picked.
olamgroup.com 53
Social
Olam trainers demonstrate safe pesticide handling practices to smallholders. Since the Aviv coffee plantation in Tanzania started employing villagers, pupils have
increased from 50 to 80 at the Lipokela school as parents can afford to send them.
How we tackle child labour NGOs such asthe International Cocoa Training farmers in good labour
The UN Food and Agriculture Initiative, and industry peers, to practices through the Olam
Organization (FAO) denes child labour progressively eliminate these abuses Livelihood Charter (203,696 in 2016)
as work that is inappropriate for a inagricultural supply chains. Helping farmers to increase yields
childs age, affects childrens Olam follows, and expects its through the provision of pre-nance,
education, or is likely to harm their suppliersto follow, the table below agri-inputs and training in Good
health, safety or morals. It should be asadirect reference to ILO Convention Agricultural Practices, enabling them
emphasised that not all work carried No.138 dening child labour by the to hire adult labour
out by children is considered child following categories: Identifying child labour risk factors
labour. Some activities may help Minimum age for admission to employment or work through the Olam Farmer Information
children acquire important livelihood Developed Developing System and collaborating with
countries countries
skills and contribute to their survival governments and partners to provide
Regular work 16 years 16 years access to schooling and long-term
and food security. However, much of
Hazardous 18 years 18 years
the work children do in agriculture is availability of teachers
work
not age-appropriate, is likely to be /LJKWZRUN 15 years 15 years
Scaling-up initiatives by working
hazardous or interferes with childrens (or 14 years withpartners including customers,
education. For instance, a child under subject to foundations, governments
the minimum age for employment who exceptions and NGOs.
allowed by the
is hired to herd cattle, a child applying
pesticides, and a child who works all
ILO or national Tackling child labour in cocoa and
law)
night on a shing boat and is too tired hazelnut production with the Fair
to go to school the next day would all This is clearly stated in the Olam Labor Association (FLA)
be considered child labour. Supplier Code, which is being rolled As an afliate member of FLA, we have
Olam is against all forms of child out across our supply chains, setting programmes to help eradicate child
exploitation and the use of forced out minimum and non-negotiable labour from cocoa and hazelnut supply
ortrafcked labour, respecting standards to which all our suppliers chains in Cte dIvoire and Turkey. For
andabiding by the ILO conventions must adhere. Signing our Supplier 2016, FLA conducted audits at 3 cocoa
No.182on the Worst Forms of Child Code represents a commitment to cooperatives in Cte dIvoire with no
Labour and No. 138 on the Minimum follow the fair employment practices instances of child labour identied. We
Age for Admission to Employment and incompliance with all applicable local believe this is due to the consistent
Work. Inaddition to ensuring this is government rules and regulations messaging and support we give to
applied across all of our direct regarding Child Labour Laws, and an farmers about child labour.
operations (plantations, farms and understanding that regular audits will Since one of the root causes of child
processing units), Olam works be carried out. In addition, Olam labour is lack of money, Olam Cocoa
proactively with others, including our undertakes a raft ofmeasures to has intensied support to womens
suppliers, governments, specialist mitigate the risk of child labour; associations. We assist them in
these include:

developing income-generating
activities such as fortied cassava
nurseries (see page 57 for more
information). This year, we will extend
the activities to poultry and animal
production, as well as literacy and
savings and loan schemes.
Turkish hazelnut farmers have larger
farms than traditional smallholders in
Africa and Asia, but they still require
Olam Livelihood Charter support,
particularly in terms of environmental
and social practices. Migrant labour
moving through Turkey to support the
harvests brings increased labour risks,
from child labour to fair payment for
adults. The FLA monitors the success
of our awareness and remediation
programmes. The FLA report from the
2016 harvest monitoring will be
available later in 2017.
Olam eld staff use picture aids to help smallholders understand child labourissues.
Progress on goals
*2$/=HURKDUPZRUNSODFH0DWHULDODUHD/DERXU
3.1. Eliminate serious incidents Reduce LTIFR to 0.3 in Olam LTIFR was further reduced to 0.43 in our 69 On target
processing operations Tier 1 processing plants, a 30% year on year
(50%reduction from 2015 actual). reduction.
Reduce LTIFR in Olam-managed Primary focus in 2016 has been in the On target
plantations, concessions and farms expanding palm and rubber plantations
by 50% from baseline determined inGabon, with new professional resources,
in2016. extensive training, several audits and corrective
actions. This has signicantly improved the focus
on safety behaviours with positive benets. It is
too early to quantify the improvement in lagging
indicators.
6XVWDLQKHDOWKDQGVDIHW\ All locations routinely report unsafe Olam Imperative 3 Reporting, Recording, On target
behaviour change programme acts and unsafe conditions, and Review and Compliance Checklist has now
nearmisses. been rolled out to all key locations, so leading
and lagging safety indicators will be routinely
reported from Q1 2017. Leading indicators
include unsafe acts and near misses.
*2$/5HVSHFWIRUZRUNHUVULJKWV0DWHULDODUHD/DERXU
2ODPFRPSOLHVZLWK,/2 No moderate or severe breaches of We identied 4 cases in processing operations Behind target
principles compliance reported or observed where ILO principles were breached. These
inaudits. related to non-compliance on statutory dues,
working hours, minimum wages, and overtime.
One breach of Olam child labour standards on
plantations was identied by Internal Audit.
Corrective action has been taken to ensure legal
age restrictions are observed, and that
age-appropriate roles are assigned.
4.2. Diversity strategies are 100% of businesses with >100 Draft policy undergoing review. Behind target
implemented employees to have adocumented
and reported diversity strategy.
olamgroup.com 55
Social
Our material areas
FOOD SECURITY AND NUTRITION

Olams focus is on improving access to safe, affordable andnutritious food
forourfarmer suppliers and in the workplace, so that their dietary needs
andpreferences are met. This enables them to live an active and healthy life,
whichinturn supports productivity and livelihoods.

Continue to support smallholders
with crop diversication for improved
income and food security
Increase nutrition training for
226,030 26 billion 92
communities through partnerships
Increase fortication of food stuffs
in Africa
Smallholders trained Servings of Entries received for the
inGood Agricultural micro-nutrientfortied 2016/2017 Olam Prize Key sector collaborations
Practices(GAP) foods in Africa forInnovation in andcommitments
Food Security Hosted the Building Sustainable
Futures Forum in Singapore
Jointly launched the Global
Agri-business Alliance which
willfocus in particular on SDG 2:
Endhunger, achieve food security
and improved nutrition, and promote
sustainable agriculture
Member of Champions 12.3 on
food waste
We are guided by
Commitment to continuous
engagement with communities
Relevant SDGs around our developments
tounderstand needs
(FPIC1 procedures)
1
FPIC Free, Prior and Informed Consent.

By 2030 we will need
to feed 8.3 billion
people, over 1 billion
more than today.
Left unresolved, our
inability to solve
food insecurity will
constrain our ability
tofeed a growing
world while leaving
millions in poverty.
The project is benecial for the ladies because it provides nancial support through the tuber sales. With this
support we can assist our husbands to pay our childrens schooling and better manage the household expenses.
Awa Ouattara, Mebifon Womens Association, in a Cte dIvoire cocoa growing community.
Olams role in food security Promoting crop diversication to Small changes in Cameroon rice
Around 500 million smallholders increase incomes and food access logistics make a big impact on
produce 80% of all the food consumed Just as a balanced diet is nutritionally foodwaste
in Asia and Sub-Saharan Africa. Yet, as diverse, so a healthy livelihood Cameroon currently imports over 80%
a sector, agriculture has the highest shouldnt be overly reliant on one crop. of its rice. In 2012, Olams rice team
incidence of families living below the Encouraging farmers to diversify crops put in place protocols to reduce losses
poverty line. Given that many of our helps to stagger income and spread across the segments of the supply
products (aside from rice, dairy and risk. It is also good for the soil. Farmers chain under its control:
wheat) could be termed as niche can grow other crops for cash or for
Stronger bags
ingredients, or raw materials such as family needs. In Cte dIvoire, a cocoa
rubber, our role in driving food security Ensure re-bagging of torn bags
programme, with various customer
might not seem obvious. But our close partners, issupporting women to grow assoon as possible
working relationships with farmer cassava, a food staple. In 2016, we Labour training for bag handlers
suppliers, and our expertise across the helped 11 womens groupsestablish Laying tarpaulin underneath
value chain, enable us to equip farmers nurseries from 5,000 vitamin A fortied bagging operation
and their communities with the high-yielding cassava plants. These Maintaining pallet quality
knowledge and tools for sustainable nurseries can now each produce Surprise audits.
and protable agriculture, including 50,000 cassava plants every year.
staple food crops. From 2012 to 2016, losses in logistics
Weplan to support a further 9 groups
reduced from 1.25% to 0.8%. The
in 2017.
amount of edible rice saved equates
toaround 2 bowls each for the
23 million people of Cameroon.
Olams priorities to increase global food security

Increase productivity on smallholder farms Improve water usage/irrigation efciency
Increase productivity on large-scale farms while Invest in research to improve farm productivity
catalysing food production in the region through Reduce land degradation through zero till farming
outgrower programmes Support policy frameworks that seek inclusive and
Better nutrition through education, crop diversication, sustainable growth for all countries
and producing healthy packaged foods Lead private and public partnerships to enable
Reduce immediate post-harvest losses and food waste initiatives to scale up and replicate.
Invest in agri-infrastructure
olamgroup.com 57
Social
Our material areas: Food security and nutrition
Educating farmers about nutrition Fortifying foods in Africa Oil palm is native to the West and
Smallholder communities need support One of the most cost-effective Central African regions. Palm oil is an
beyond yield improvements, and that strategies to improve nutrition, essential part of many traditional
includes nutrition education. fortication is sometimes mandatory, African cuisines. In early 2016, our
Vegetables and protein-rich foods grow such as for our wheat processing in renery in Mozambique started
in most regions but smallholders often Nigeria and Ghana; however, often the fortifying palm oil with vitamin A.
dont understand the benets of a choice lies with the manufacturer. 74%of children under 5 in
balanced diet. Pilot modules started in Mozambique are vitamin A decient,
In 2016, our Packaged Foods and with negative impacts on growth,
Cte dIvoire were expanded in 2016. Grains businesses produced over immunity and development.
26 billion servings of fortied foods. Recognising palm oil asa strong
Promoting nutrition in the workplace These included: delivery for vitamin A, inNovember
Many adults eat at least 1 meal a day at 2016 the Government ofMozambique
419.6 million servings of fortied
work, which makes it a logical place for made fortication mandatory.
Milky Magic and All Milk biscuits
health intervention.
25.6 billion servings of fortied
In 2016, as per our Goals, we wheat our in Ghana, Nigeria,
continued to develop and review an Senegal and Cameroon
internal Standard to apply to the 42.86 million servings of fortied
GlobalNutrition for Growth Compact. tomato paste.
Land tenure and food security in Gabon

GRAINE1 is a pioneering JV initiated by the Government of Gabon. Its twin goals
are reducing reliance on imported food 60% is imported and supporting
rural livelihoods (33% live at or below the poverty line). The Government
identies, allocates and transfers parcels of environmentally and socially
suitable land to cooperatives (with title certicates). Olam manages the project,
providing technical expertise and supporting cooperatives with training and
improved planting stock, inputs and logistics to manage protable plantations
for palm oil and food crops such as cassava, banana, tomatoes andpepper. By
the end of 2016, almost 16,000 people in over 775cooperatives had signed up
to the scheme. In terms of starting to grow produce, around 2,400 members
(ofwhom 61% are women) had planted bananas and cassava.
Jean Lirois Anizok, from the Earth Promise
Jean Lirois Anizok is from the Earth Promise Cooperative which has 18 women Cooperative.
and 25 men. They have 30 ha which by the end of2016had been planted with
8.17 ha of bananas and 13 ha of cassava.
GRAINE is a good programme for rural people because it brings work and income for the people. We have seen
changes in our lives: the money means we can send our children to school and feed our families. It should extend
toallother villages and embrace more crops for planting, especially sweet potato, yam, corn, peanuts and so on.
Watch the lm about the GRAINE project See the Land section on the due diligence process
at olamgroup.com. to avoid deforestation by smallholders.
1
GRAINE, which means seed in French, stands for Gabonaise des Ralisations Agricoles et des Initiatives des Nationaux Engags (Gabonese Initiative for
Achieving Agricultural Outcomes with Engaged Citizenry).
2
70,000 ha to be developed for palm plantations and 8,000 ha for food crops.

The second Olam Prize for Innovation Creating the future we want
in Food Security launched learning from experts and
Sponsored with our international collaborating with peers
scientic partner, Agropolis Fondation, In September 2016, Olam convened
the US$50,000 prize rewards an more than 300 delegates in Singapore
outstanding research project for its to attend the Building Sustainable
potential impact on the availability, Futures Forum (BSFF). Our intent was
affordability, accessibility oradequacy to gather our peers across the
of food. Over 90 applications have agri-value chain to identify areas for
been received and the winner will be collaboration in alleviating global
announced in 2017 on olamgroup.com. hunger and nutrition as part of the
The winner of the 2014/15 Prize SRI SDGs. We recognise that solving food
International Network and Resources security without depleting natural
Center (SRI-Rice) used the funds to resources or impacting climate change
develop an international network of can only be achieved by harnessing Marking the beginning of the Global Agri-business
System of Rice Intensication (SRI) our collective strengths. Alliance.
researchers in 45 countries. A key highlight of the BSFF was the
Theplatform facilitates collaboration launch of the Global Agri-business
across borders on the SRI Alliance (GAA), also initiated by Olam.
methodology that enhances rice Its aim is to collectively address
productivity, water conservation, sustainability, social, labour and
livelihoods, soil health, and crop environmental issues where the
resilience to climate stress. agri-sector has a shared responsibility.
The rst meeting of the GAA in
December 2016 initiated a series of
working groups which will tackle the
systemic issues identied by the sector.
Watch the panel videos of the BSFF at

olamgroup.com. For more on the GAA visit
globalagribusinessalliance.com.
Progress on goals
*2$/)RRGVHFXULW\DQGQXWULWLRQ0DWHULDODUHD)RRG6HFXULW\
5.1. Workers are educated on, and Conduct nutrition education or Olam Workplace Nutrition Guidelines drafted Behind target
FDQDFFHVVQXWULWLRXVIRRGV access initiatives for the workplace and under nal review.
for 100% of target businesses, to be
Olam Healthy Living programme implemented in
determined in the Standard.
19 businesses across Africa. This initiative
targets improved health and nutrition for workers
and communities.
,QFUHDVHGDYDLODELOLW\RI Produce 40 billion servings of Over 26 billion servings of fortied biscuits, our On target
PLFURQXWULHQWIRUWLHGIRRGV micronutrient fortied foods. and tomato paste (Africa).
olamgroup.com 59
Social
Our material areas
FOOD SAFETY AND QUALITY

Ensuring our ingredients and products are delivered to customers without
contamination or adulteration is the bedrock of our quality and
compliance programmes.

Improving traceability in the
supply chain
Supporting smallholders to
improve quality
1.36m MT US$32.24m 57,884

Enforcing HACCP1 and pursuing
certication for top tier
processing facilities
Product volumes sourced Paid in premiums to Smallholders received
under the Olam Livelihood OLC smallholders training on reduction We are guided by
Charter (OLC) andoptimisation of Olam Quality Policy and Food
synthetic fertilisers Safety System
Good Manufacturing Practice (GMP)
Hazard Analysis and Critical Control
Points (HACCP)
BRC/FSSC 22000
International food safety regulations
6.4m 82% 1 st
Seedlings distributed to Of relevant Tier 1 food Cashew processing
OLC farmers (e.g. cocoa, processing facilities facilityin India to get
coffee, cashew) for certied to BRC/ BRC certication
improved quality FSSC 22000
Relevant SDGs
1
HACCP Hazard Analysis Critical Control Point,
a preventative approach to physical,
chemicalandbiological hazards.

Drying oors or mats for these chilli peppers in India prevent contamination from the Rusmolco: our dairy teams provide high quality feeds for the cows, and regularly
soil, yet many smallholders do not have the funds to buy one. check water for nutrient quality, heavy metals, or any other contaminants that
might affect animal or human health.
Integrated supply chains enhance coffee and black pepper are sourced Applying internationally recognised
food safety from a vast, fragmented network of processing standards across
hundreds of thousands of smallholder theworld
The safety and quality of our products
farmers in remote parts of the
are non-negotiable for our business. A large part of our processing footprint
developing world.
We operate highly integrated supply is in emerging markets, which do not
chains working with smallholders to Tracing products back to individual necessarily have the same regulatory
provide training, seeds and other farmers is challenging often the frameworks for Quality, Environment,
inputs. This is coupled with the highest quantities they produce are too small to Health and Safety as developed
standards of quality and be marked and processed as a nations for example, a lack of
microbiological control at our separate batch in a factory and there Occupational, Safety and Health
processing plants in origin, and in are middlemen involved in buying norms, or a regulatory authority with
destination markets, reducing food and selling. strict standards. Perception of risk and
safety risks. This structure also means Through the OLC, we strengthen legal compliance can sometimes be
we can more easily accommodate traceability by buying directly from the relatively low as consequences may
changes in regulation, such as the farmer groups. By helping them to belimited due to weak enforcement.
Foreign Supplier Verication Program, improve their agricultural practices, Olam therefore instils international
which requires importers of food wealso help them to improve product standards and behaviours across our
products into the USA to undertake integrity and quality. This includes global operations. By the end of 2016,
verication programmes to ensure using natural methods of pest control Cocoa, Coffee, Dairy, Rice, SVI and
preventative controls for supply chains and organic fertiliser coupled with Sugar businesses had achieved
outside the country. This is part of the judicious pesticide use. Under the 100%BRC/FSSC 22000 certication.
Food Safety Modernization Act, which Olam Livelihood Charter, almost 95,000 This means that 82% of relevant top
was implemented in the USA in 2016. small-scale farmers were trained tierfood processing facilities are now
specically on Integrated Pest BRC/FSSC 22000 certied.
Ensuring product integrity through Management (IPM). This focuses on
traceability Primary processing units are governed
natural methods of pest control, such
by our mandated QEHS policies,
Traceability is of increasing importance as planting maize as a border crop,
standards and codes of practice.
to our customers who want to know using other crop and pheromone traps,
Inaddition to self-audit, they are
about the products they are buying: and deploying hygienic drying
subject to regular audits by regional
where they are from, who grew them, techniques that minimise contamination
Environment, Health and Safety
and under what conditions. Many of of the harvest.
managers and customers.
our products such as cocoa, chilli, In 2016, 1.34 million metric tonnes of
product under the OLC were traceable.
olamgroup.com 61
Social
Our material areas: Food safety and quality
Continuous training for the highest

Following international standards food safety standards
In processing, we employ the systematic preventative approach called Olam is committed to ensuring
Hazard Analysis Critical Control Point (HACCP). It addresses physical, employees receive ongoing training,
chemical and biological hazards across the operation as a means of particularly with regard to food safety.
prevention rather than relying on nished product inspection. Some of the One example is Olam SVIs annual
hazards we manage include the adulteration of raw materials, processing Continuous Excellence (CE) Workshop
contamination by foreign bodies or pathogens and labelling errors. This organised by the Innovation and
approach enables us to determine key controls over processes and Quality (IQ) team. The one and a
concentrate resources on activities that are critical to ensuring safe food. halfday workshop was attended by
53team members from operations and
Quality and Assurance teams from
SVIs global plant locations, who
shared best practice and learnings.
Acombined mock recall exercise was
completed with 4 different scenarios
taken on by cross-functional teams
from Supply Chain (Planning and
Customer Service), Legal, Finance,
Engineering, Plant Operations, QA
andIQ. The exercise rehearsed
decision-making processes in
timebound situations. The 2016 Olam
SVI 6 Star Award for excellence in
contributions towards food safety
andquality was awarded to Olam SVIs
Gilroy plant in California (garlic) and
the Key Food Ingredients (dehydrated
vegetables) plantin China.
The Nutrifoods biscuit factory in Ghana produces 3 popular biscuit brands for consumers Royal King
Cracker, Royal Milky Magic and Perk Milk Shortcake.
In 2016, the Packaged Foods Business universal recognition and credibility.

(PFB) was working towards FSSC Both Ghana facilities have now
22000 accreditation for 2 sites the achieved FSSC 22000 certication with
Nutrifoods Biscuit factory and the Tasty Nutrifoods being the rst biscuit factory
Tom tomato paste plant in Ghana. in West Africa to do so.
In Nigeria, both the tomato paste and In India, Olams integrated
noodles facilities successfully semi-mechanised cashew processing
completed the rst surveillance audit. facility at Vizianagaram was honoured
The FSSC 22000 certication is a with the National Award for Food Safety
Global Food Safety Initiative (GFSI), 2016 by the Confederation of Indian
which provides thought leadership and Industry. This was in recognition of its
guidance on food safety management holistic approach in establishing,
systems, helping to embed best running and managing the Food Safety
practice and build customer and Quality Systems. The plant is the
condence. GFSI benchmarks the rst and onlycashew plant in India to
various food safety standards against a get BRC certication (A grade) from
basic set of criteria, which enables receipt ofraw cashew nuts to
production and packing. Fresh garlic harvested by our Gilroy plant, USA.

Keeping it natural AJ11PK, a new, black cocoa powder
Increasingly, consumers are looking for that has no added sodium (Sodium is
clean, natural and healthy products. As traditionally added as an alkalising
well as sourcing individual ingredients, agent during processing for dark
Olam SVI also makes own label recipes cocoa powders to achieve the
for customers such as salsas. In 2016, desiredcolour).
Olam SVI achieved non-GMO1 and Developed for the Brazilian and South
gluten-free certications. American markets, this cocoa powder
In October, as part of the celebrations aligns with the Pan-American Health
commemorating the 70th anniversary of Organization (PAHO) policy to reduce
Olam Cocoas Joanes brand in Brazil, dietary salt intake among South
and the opening of the new Cocoa American consumers.
Innovation Centre, we launched
Opening of Olam Cocoas Innovation Centre, Brazil.
AJ11PK black cocoa powder, innovative because sodium has not been added to achieve the colour.
Progress on goals
*2$/6DIHDQGUHOLDEOHIRRGVIRURXUFXVWRPHUV
)RRGSURFHVVLQJIDFLOLWLHV 100% of relevant processing facilities 82% of relevant top tier food processing On target
PHHWLQWHUQDWLRQDOTXDOLW\DQGIRRG to beFSSC 22000 or BRC certied. facilities are FSSC 22000 or BRC certied.
VDIHW\VWDQGDUGV
1
Overall, Olam International does not encourage Genetically Modied crops entering our food supply chains.
olamgroup.com 63
ENVIRONMENT
3HUKDSVPRUHWKDQDQ\RWKHUVHFWRUDJULFXOWXUHIDFHV
huge environmental challenges that are interlocked and
FRPSOH[$WDJOREDOVFDOHRXURSHUDWLRQVDQGWKRVHRI
RXUVXSSOLHUVDUHDWULVNRIFOLPDWHFKDQJHSRRUVRLO
quality, and water scarcity, which in turn impact on global
IRRGVHFXULW\
CONTENTS:
68 Land
74 Water
80 Climate change
Environment
This section explores our achievements and challenges in 3 of

our material areas that focus on environmental impacts:
land, water and climate change.
Land Water Climate change

68 74 80

Maintaining sustainable yields and growing our
business means that we have to act as responsible
stewards of the environment and encourage third-
parties to do the same.
Dr Christopher Stewart
Head of Corporate Responsibility andSustainability
Q&A with Dr Christopher Stewart, Head of Which environmental issues were stakeholders
particularly interested in?
Corporate Responsibility andSustainability As an organisation that sources from thousands of farmers in
Olam is a member of the UN Global Compact. How do you developing countries, many of the issues in our supply
chains are social problems, linked to poverty and lack of
full Principle 7 of taking a precautionary approach to
services, rather than strictly speaking environmental but
environmental challenges? clean water, fertile land and climate suitability are essential
As a global agri-business we, and our suppliers, are for these communities to thrive. Climate-Smart farming and
dependent on the earths natural resources. Maintaining Water Stewardship practices are examples of the ways we
sustainable yields and growing our business means that we are responding to these concerns.
have to act as responsible stewards of the environment and
As we have moved upstream, stakeholders are increasingly
encourage third-parties to do the same. Our own operations
asking us to demonstrate a much broader form of
must avoid or mitigate potential negative impacts, therefore
responsibility, taking on community development and
all investment cases for any new developments must
large-scale conservation issues within the landscapes where
undergo environmental and social impact assessments and
our plantations are sited. Social contracts that recognise
implement the relevant management plans. For our existing
community land rights are the key platform for our continuous
operations, we are guided by our Risk Scorecard, as well as
engagement plans, upheld by robust grievance procedures.
a suite of Policies, Codes and Standards. Our Governance
Eliminating deforestation from palm and rubber supply
structure ensures that we adhere to these principles and that
chains was raised by the NGO Mighty Earth in 2016 (see the
we undertake regular audits and gap assessments.
Land section of this report), whilst deforestation is
How did Olam perform against its environment goals increasingly recognised as a major issue in the cocoa sector.
Building on our existing upstream policies, in 2017 we have
in2016?
developed a Global Forest Policy to eliminate unsustainable
Our carbon footprint for our own operations continues to practices across all our supply chains.
improve. We are also making good progress with our
Climate-Smart Agriculture training programmes for We have tried to ensure that the majority of the points raised
smallholders, and we have undertaken ground-breaking by stakeholders have been addressed in this report.
work on water stewardship, for example in coffee.
We increased the overall tonnage covered under the Olam
Supplier Code (OSC). The Code covers social, as well as
environmental requirements, and were updating it in 2017 to
reect the evolution of our global policies. More information can be found on sustainability progress in our
Managing the impact of our third-party supply chains is a GRI Report and Olam Livelihood Charter on olamgroup.com.
3-step process: rstly, we need to complete the roll-out of our
Supplier Code; then we need to verify that suppliers are
upholding the Code; and nally, we must work with suppliers
to address any issues that we identify in this process. This
can be straightforward when we have direct engagement
with the supplier but it is much more challenging when we
are procuring through a third-party, as we dont have the
direct link to producers. With a supplier base of more than
4 million smallholder farmers, verifying that each one is
upholding the Code is impossible. Our big challenge this
year is how to combine risk assessment, partnerships and
pre-competitive verication platforms to ensure compliance
with the Code, building on the extraordinary development of
remote sensing technology and traceability systems.
olamgroup.com 67
Environment
Our material areas
LAND
The land required to supply the 14.4 million metric tonnes of product in 2016 is
estimated at just under 10 million hectares. This is slightly larger than the size of
Hungary1. Ensuring the sustainable development and use of land-based ecosystems
in both our direct andindirect supply chains is therefore a continuing imperative.

Protect High Conservation Value
ecosystems and High Carbon
Stock Forests
Ensure community rights and
58% 4th 120,464

participative decision-taking
Reduce indirect impacts on land
from third-party farmers
Of priority product volumes Most transparent company Smallholders trained in and suppliers
procured by origins in globally according to soil fertility
FY16 are covered by the theSustainable Palm Oil Key sector collaborations
Olam Supplier Code2 Transparency Tool (SPOTT)3 andcommitments
UN Guidelines on Responsible
Land Tenure
4th year Forest Footprint
Disclosure B
Member of the Natural
Capital Coalition
179,991 130,157 10,474

Smallholder hectares GPS Smallholders trained on Individual farm
mapped under the forest conservation, management plans for
OlamFarmer Information including the impact of cocoa smallholders
System (cocoa) converting forest through generated under OFIS
burning, along with other in 2016
Climate-Smart
Relevant SDGs Agricultural practices 1
9.3 million hectares.
2
Cashew, cocoa, coffee, cotton, hazelnut,
palm and rubber.
3
Compiled by the Zoological Society of
London (ZSL).

Estimated breakdown of land footprint
Under Olam management Within the Olam Livelihood Charter Under third-parties
Olam-managed land
Natural forest concessions
(Republic of Congo)
Almond orchards (Australia
and USA)
Dairy (pasture and grain
inRussia and Uruguay)
Planted coffee plus High
Conservation Value (HCV)
set-asides (Laos, Brazil,
Tanzania and Zambia)
Planted palm plus HCV
set-asides (Gabon)
2.4 0.67 6.67
Planted rubber plus HCV
MHa* MHa* MHa*
set-asides (Gabon)
Cocoa plantation (Indonesia)
Rice farm (Nigeria)
Black pepper plantation (Brazil)
* Million hectares
Land stewardship Coffee plantations in Tanzania and

Olam has always understood that we Zambia gain Rainforest Alliance and Pursuing international
have signicant responsibility in terms UTZ certication standards and certication for
of land and biodiversity stewardship, Subsidiaries Aviv in Tanzania and the upstream developments
coupled with ensuring that the rights Northern Coffee Corporation Ltd (NCCL) We are guided by:
ofcommunities are upheld. This in Zambia now meet the growing demand
Olam Plantations, Concessions
responsibility is also a business benet, for single-estate, certied, traceable
helping to ensure we do not jeopardise and Farms Code
volumes. Aviv is a 2,000 ha plantation
our own operations through soil Olam Sustainable Palm Oil
with over 1,025 ha of planted Arabica
degradation, loss of pollinators and Policy (updated in 2016)
coffee and a wet mill processing
increasing global temperatures through facility. Protected areas, including Olam Global Forest Policy
the loss of carbon sequestration by buffer zones, represent over 15% of the (new in 2017)
forests. Many issues relating to land are land under Aviv management. Olam Environment Policy
also interconnected with livelihoods, Olam Health and Safety Policy
NCCL is situated at Kasama, in
water and climate change. Olam Code of Conduct
Zambias Northern Province, and has
planted over 1,825 ha. A further Certications including FSC,
Land under our direct control ISO, Rainforest Alliance,
1,400 ha of conservation areas are
Our selective integration into being protected. Volumes for both RSPO and UTZ
plantations, concessions and farms plantations will be supplemented with International standards
began in2010. From the start, we smallholder coffee programmes, which including Alliance for Water
recognised that they would only be will be supported for future Stewardship (see page 76),
successful if they adhered to strict certication efforts. IFC, Sustainable Natural
environmental and social criteria. Most Rubber Initiative
of our operations are in rural areas of (SNR-i) Standard
developing nations. Each locale has its International
own challenges, and we have learned Labour Organization
many lessons along the way. However,
by working with expert partners and
listening continually to our
stakeholders, we are seeing our
operations have positive impacts.
olamgroup.com 69
Environment
Our material areas: Land
In Nigeria, our 10,000 ha rice farm and extensive network of smallholders grow ricefor the domestic market.
Ourteam has discovered the rare Northern Carmine Bee-Eater and has taken steps to preserve areas of bush,
engaging with smallholders to ensure they do not disrupt the habitat.
A social team engages regularly with Engaging with communities It is not possible to monitor the land
semi-nomadic tribes living in the forest Our aim is for all land developments management processes of all these
concessions. tohave a positive impact on local farmers, so we prioritise high-risk
communities. Firstly, because it is the products (cashew, cocoa, coffee, palm,
Managing natural forests and rubber) and use the Olam
right thing to do and, secondly,
In the Republic of Congo, Olam Livelihood Charter and Olam Supplier
because we hope local people will
subsidiary Congolaise Industrielle Code to extend our reach of inuence.
want to work with, or grow crops for,
des Bois (CIB) manages over Specic product policies, such as the
Olam. Social conict is
2 million hectares of natural forest Olam Sustainable Palm Oil Policy, state
counterproductive and costly to
of which about 1.3 million specic product criteria to be followed.
resolve. We use the internationally
hectares are FSC certied1 In 2017, we will launch a cross-
recognised Free, Prior and Informed
one of the worlds largest commodity Global Forest Policy, and
Consent process (FPIC) at the start of
contiguous FSC certied tropical strengthen and clarify the requirements
all new developments, and engage in
hardwood concessions. Our most of our Supplier Code for all third-party
acontinuous process of engagement.
recent concession of around party suppliers. Please see olamgroup.
671,000 hectares, also leased We also undertake Social Contracts or com for more information.
from the Republic of Congo, Long-term Village Development Plans.
isset to achieve certication
See page 72, our Focus onGabon
Verifying our third-party palm
by2018. for examples of initiatives. supplychain
1
Licence numbers: The palm supply chain is one of the
CIB Kabo FSC-C128941;
CIB Pokola FSC-C014998; Responding to grievances most complex and challenging to verify.
CIB Loundoungo FSC-C104637. Grievance procedures are important Partnerships and collaboration are
for dealing with any complaints. essential for verifying that suppliers
Weinvestigate and take appropriate areupholding our requirements.
Protecting biodiversity action. If acomplaint is submitted via We are working with the World
athird party, we also investigate. For Resources Institute (WRI) and its
Plants, birds, insects and mammals all
example, the NGO Brainforest stated Global Forest Watch Platform to help us
help to create the ecosystems upon
in a report released in December 2016 identify high-risk mills, which we will
which we depend, so protecting
that somecommunities felt they had verify according to the time-bound
biodiversity by minimising our impact
not been adequately informed about targets as stated in our 2020 road map
and safeguarding areas of habitat is
the GRAINE programme in Gabon. in our Palm Policy. Any mills found to be
vital. All new developments are subject
These complaints were not made sourcing from areas identied as being
to independent Environmental and
toOlam despite much ongoing medium or high risk from poor
Social Impact Assessments, and we
engagement and we have not been production practices will be assessed,
are committed to managing our farms
able to identify the individuals and potentially removed. As highlighted
and plantations according to best
concerned. Read more about GRAINE in our October Interim Progress Report,
practice. It should be noted that
in the food security section of we had already reduced our supplier
welimit the use of WHO Class
this report. base from 48 in 2015 to 14 in 2016.
1Aand1B chemicals to
exceptional circumstances. Given the technical aspects and
Land under the control of suppliers
complexity of the palm supply chain,
About 75% of land producing crops we encourage stakeholders to go to
forcustomers is under the control olamgroup.com for our strategy and
of others. FAQs. We also welcome all contact for
more information via crs@olam.net.

Committed to growing and sourcing with farmers in the downstream Gabon for our rubber plantation, this is
sustainable rubber supplychain to SNR-i stakeholders to allow time for both parties to support
inmid-2016. a multi-stakeholder process to develop
Unlike the palm sector, the rubber
further specic criteria for responsible
industry does not have a certication
scheme so, in addition to applying our
Responding to Mighty Earth agricultural development in countries
In December 2016, the NGO Mighty that have most of their land covered by
own internal standards, we have been
Earth issued a report with allegations forests. It does not imply that we agree
supporting the natural rubber industry
of deforestation in our Gabon palm and with Mighty Earths allegations on our
in the development of an international
rubber plantations, and third-party Gabon operations, which we believe to
sustainability standard.
palm oil sourcing business. We have been developed to the highest
In January 2015, the International published a full technical response, environmental and social standards
Rubber Study Group (IRSG) launched accepting many positive applicable in the national context.
the Sustainable Natural Rubber recommendations related to Wermly believe that we have
Initiative (SNR-i), which is a self- transparency in the third-party supply demonstrated a different and more
assessment standard covering chain but refuting the claim that our sustainable model for our plantations
5 main criteria: Gabon developments had not taken a and will be hosting stakeholder visits in
Support improvement of productivity responsible approach. 2017. For more context, please see
Enhance natural rubber quality overleaf, as well as the response on
We met with Mighty Earth in January olamgroup.com from Professor Lee
Support forest sustainability 2017, and then published a joint White, Director of Gabons National
Water management statement with a series of actions on Parks and the UNFCCC Forests and
Respect human and labour rights. behalf of both parties to increase Agriculture negotiator for Gabon.
mutual understanding and achieve
In February 2016, we assessed our
greater transparency.
operations against the proposed
SNR-istandards and completed the This includes Mighty Earth suspending
self-declaration. In addition, Olam its current palm and rubber campaign
presented a comprehensive for a year, and its complaint to FSC
sustainability framework that covers regarding Policy for Association
upstream operations and engagement (seeour statement on olamgroup.com).
It should be noted that, while we have
agreed to pause development in
Progress on goals
*RDO6XVWDLQDEOHGHYHORSPHQWDQGXVHRIODQGEDVHGHFRV\VWHPV0DWHULDODUHD/DQG
3URWHFWLRQRIHFRV\VWHPVKLJK 100% of Olam-managed plantations, Due Diligence, Environmental and Social Impact On target
FDUERQVWRFNIRUHVWVDQGKLJK concessions and farms to have Assessments (ESIA) completed for all
FRQVHUYDWLRQYDOXHIRUHVWV implemented their Land plantations currently in operation.
ManagementPlan.
A Global Forest Policy is in consultation Q1 2017.
Full response to Mighty Earth regarding
allegations of deforestation available on
olamgroup.com.
1RFRPPXQLW\EDVHGFRQLFW 100% of Olam-managed plantations, Free Prior Informed Consent, Social Contracts On target
on Olam-managed plantations, concessions and farms to have and Grievance Procedure were established and
FRQFHVVLRQVDQGIDUPV implemented their FPIC process and achieved for all new Olam plantations in Gabon
their Social Action Plan. since 2011.
Formal Grievance Procedures are in place for
established coffee plantations in Tanzania,
Zambia and Laos.
A gap analysis will be conducted in 2017 to
ensure suitable processes are in place to avoid,
mitigate and manage any potential conict
across all upstream operations.
7.3. Reduce indirect land impacts 100% of third-party supplier volume All priority products are working with suppliers On target
IURPWKLUGSDUW\IDUPHUVDQG complies with the Supplier Code to implement the Supplier Code.
suppliers based on a prioritised product
58% of priority product volumes procured by
approach.
origins in FY16 are covered by the Olam
Priority products: cashew, cocoa, Supplier Code.
coffee, cotton, hazelnut, palm, rubber.
olamgroup.com 71
Environment
Our material areas: Land
FOCUS ON GABON
Setting the standard for responsible plantation
development in Africa
All of our palm and rubber plantation How we approach sustainable palm Engage the local communities to
developments are in joint ventures plantation development in a highly ensure that they agree with our
withthe Republic of Gabon. The forested country analysis and with the project
Government was looking for a business Validate our assessments through
Select broad areas in landscapes
partner to help develop an agricultural broad-based consultations with
that are far from national parks and
economy, to reduce its reliance on NGOs and experts
where the natural environment has
nite oil and gas exports and food Create positive social and economic
already been degraded
imports (60%) and create jobs (33% impact in the local communities
live ator below the poverty line) as well Within specic sites, ensure that
through employment, capacity
assupport cooperative smallholder weidentify the land that is of High
building, and rural
programmes. From our side, Olam Conservation Value (HCV) for
infrastructure development
recognised that Gabon had ideal biodiversity, community or
cultural reasons Ensure we are 100% RSPO1
agri-climatic conditions and soil for compliant from new planting through
growing oil palm and rubber, and that Prioritise the least value land for
to mill completion with no burning for
the Government shared our strong development and invest heavily
land clearance
sustainability ethic. inconserving the high value areas.
We actively manage these HCV All of the above applies to the
As Gabon is 88% forest cover, the smallholder programme GRAINE.
areas, helping to prevent poaching
Government decided to make available Cooperatives receive ongoing
and illegal hunting
a small percentage of its most training in environmental practices
degraded forests for large-scale including the conservation of forests.
agriculture, which has already
provided thousands of jobs.
Bitam
Minvoul
Oyem
Mdouneu Mkambo
Cocobeach 1
Mitzic Roundtable on Sustainable Palm Oil
Makokou
Libreville Ntoum Ovan

Kango
Boou Main road

Ndjol
ORG Bitam
Okondja Aboumi
SOTRADER GRAINE
Lambarn
Port-Gentil
Lastoursville
Onga OPG Makouke (ex Siat)
Akini
OPG AAwala and Mouila lot 1, 2 & 3
Fougamou Iboundji
Koulamoutou National parks
Natio
Ombou Mimongo Moanda Ngoujok Lkoni Forest
Mandji
Mouila Mbigou Pana Franceville Bongoville Savannah and grassland
Bakoumba
Guietsou
Boumango
Malinga
Gabon is 88% forest with the remainder being largely
Moabi infertile savannah or swamp. Our total planted area
Gamba Tchibanga
Mabanda for palm and rubber represents less than 0.25% of
Gabons land area. Over 50% of each shaded area
Mayumba
indicating the location of a plantation is protected as
Moulenghi Binza
High Conservation Value forest.
Ndindi

carried out by local populations
(including support for smallholder
farmers and a fresh produce market)
Priority hiring of local populations
onan equal skills basis.
Olam has supported social projects
inthe villages at a cost to date of more
than 1.3 billion CFA (> US$2 million),
addressing priority needs such as
schools and educational materials,
teacher housing, dispensaries, water
Our palm and rubber plantations in Gabon conserve large blocks of high-value forests, connected with natural
pumps, solar lighting, a fresh produce
corridors to create an ecological network, protecting essential core habitat and allowing free movement of
wildlife within the landscape. market, road maintenance, bridges,
and various sports and leisure facilities.
Environmental mapping: our First new palm development in Africa
technical approach to achieve RSPO certication
Olam uses plane-based laser imaging The Awala plantation of 6,822 ha lies
technology known as LiDAR for within a 20,000 ha lease, the remainder
large-scale, high resolution mapping of which is actively managed by
ofour concessions to support spatial OlamPalm Gabon for conservation
planning of plantations, conservation ofbiodiversity and forest carbon,
areas and buffer zones. andprotection of water catchments,
LiDAR allows us to map the terrain infullment of RSPO requirements.
(slopes, elevation, streams, rivers and Atthe time of certication, Awala
water bodies), and provides rich boosted Africas RSPO certied
information on the vegetation cover production hectares by 30%. Once
including biomass and carbon fullydeveloped, the Mouila plantations
estimates. These can be ground- (Lots 1-3) will achieve certication
truthed (checked by collecting by2021.
information from the features at the
location) by eld observations made Helping villages to thrive
through traditional biodiversity surveys, OlamRubber Gabon
allowing accurate large-scale mapping As with our palm operations, Olam
of land cover types. Rubber Gabon has signed social
contracts there are 3 contracts with Cameras monitor apes and elephants in the forest
24 villages (Bitam 7 villages, around our palm plantations in Gabon. At the start of
Bikondom 7 villages, and Minvoul development we had commissioned independent
10villages). The Social Contract experts to conduct great ape surveys and consulted
extensively with the Gabon National Parks Agency, and
isbased on 3 pillars: NGOs such as WWF and the Wildlife Conservation
Development of basic Society, to share best practice. We created a
connected network of High Conservation Value
social infrastructure
habitats for apes totalling 55,000 ha. These areas are
Establishment of a programme to directly connected to adjacent forests, allowing free
support income-generating activities movement of animals through the landscape.
When I visited Gabon in 2015 with the leading team of scientists involved
inthe High Carbon Stock Study, I was hugely impressed by the overall
approach adopted by Olam in developing its concession areas, by the level
As a result of our Environmental and Social Impact of engagement with local communities in implementing the RSPOs new
Assessment Surveys for rubber, we were able to Planting Procedures, and by the methodology it used to minimise emissions
identify 12,000 ha ofplantable lands on the atter of greenhouse gases from forest conversion. I saw for myself how Olam is
hills, favouring wherever possible the rattan scrub, developing a new model for palm plantations in the 21st century. One that is
but also including some areas of secondary forests.
The best-quality habitats (maturing and high-biomass
climate positive, and ecologically and socially integrated.
forests), aswell as all wetlands, have been protected Sir Jonathon Porritt,
in an extensive, well connected network of core
habitat and buffer zones (approximately 13,400 ha of Co-Founder Director of Forum for the Future
conserved terra rma forest, including some village and Co-chair of the High Carbon Stock Science Study
use areas, and 11,500 ha ofswamp forests and
wetlands). A strict no-hunting policy has been put in
place to ensure that these forests gradually recover
from historical over-hunting.
olamgroup.com 73
Environment
Our material areas
WATER
Water plays a crucial role in global food security and is essential for the
resilience of Olams international agri-supply chains. Water scarcity is
already an issue in many world regions. Successful companies of the
future will be those which plan ongoing operations and investments with
water at the centre costing it into their business plans, modelling
future availability and collaborating with local stakeholders for equitable
access and usage.

Mapping exposure to water stress
Supporting smallholders vulnerable
to water scarcity
Implementing processing plant
1st 27,370 31%

improvement plans

Agri-business globally Farmers beneted from Improvement in irrigation andcommitments
andrst business in Africa water stewardship and process water1 per Appointed to the Board and
tohave a site achieve programmes tonne of product (intensity) Technical Committee of the Alliance
theAlliance for Water for Olams own operations for Water Stewardship
Stewardship Standard for FY16 versus FY15
Member of UN CEO Water Mandate
forAviv Coffee Plantation
and California Water Action
in Tanzania
Collaborative
Completed 4th year Carbon
Disclosure Project (CDP) Water
Module: B- (Ind ave: C)
We are guided by
Water risk and footprint assessments
included inall new investment cases
Enterprise Risk Scorecard
Olam Environment Policy
Olam Supplier Code
Relevant SDGs Olam Plantations, Concessions and
1
Irrigation and process water is from surface and Farms Code
groundwater sources. Olams own operations Water Footprint Networks
are plantations, concessions, farms and Tier 1
processing and manufacturing plants. Assessment Tool
Alliance for Water Stewardship
Standard

FY16 value chain water footprint Mapping our wider water risks
3
Our water footprint for FY16 was 82 billion m (comparable to 33 million Olympic In 2016, we mapped our exposure to
swimming pools2), estimated using the Water Footprint Networks Assessment Tool. current water stress. Using the World
Resources Institute Aqueduct risk
mapping tool, wescreened OLC
Rainwater Surface and Groundwater programmes, our upstream farming
75.5 billion m3 6.4 billion m3 and plantations operations and our
1% secondary processing facilities. This
99% enables us to implement enhanced
1.7% water management and water
98.3% 0.1%
0.3% stewardship approaches.
3.9%
7.9% 96% Globally, we aim to implement the
91.8% Alliance for Water Stewardship
Standard at all processing sites and
58.6b m3 75.5b m3 3.2b m3 6.4b m3 their supply chains inmedium to
2015 2016 2015 2016 extremely high water risk locations, and
continue to manage low to medium risk
sites through ISO 14001.
0% processing 0% processing 0.3% processing 0.1% processing
1.7% Olam-managed 1% Olam-managed 7.9% Olam-managed 3.9% Olam-managed Helping smallholders reduce water
plantations, plantations, plantations, plantations, while improving yields
concessions and farms concessions and farms concessions and farms concessions and farms
98.3% supply chain 99% supply chain 91.8% supply chain 96% supply chain
Although many smallholder crops are
naturally rain fed such as cocoa and
cotton, others such as rice and sugar
Total value chain water intensity increased by 1.6% from 4,265m3 per tonne of are renowned for water consumption,
either because they are thirsty or
product in FY15 to4,331m3 per metric tonne of product in FY16. This is due to
because water is used liberally in
greater volumes ofperennial crops such as coffee and cashew that consume production methods. And with weather
more water. impacts (either from climate change or
Additional comparative data available for FY14 at olamgroup.com/sustainability/water. El Nio) bringing much drier weather in
certain areas in 2016, the rain fed
crops require extra moisture.
Water risk screening of top tier processing and manufacturing plants using the World Resources Institute Aqueduct
Water Risk Atlas tool.
Overall water risk

Low risk (0-1)
Low to medium risk (1-2)
Medium to high risk (2-3)
High risk (3-4)
Extremely high risk (4-5)
No data
Denition
Overall water risk identies areas with higher
exposure to water-related risks and is an
aggregated measure of all selected indicators
from the Physical Quantity, Quality and
Regulatory and Reputational Risk categories.
Sources: WRI Aqueduct 2014
2
Pool volume of 2,500 m3
olamgroup.com 75
Environment
Our material areas: Water
Overall water risk results for

OLCproducts
Through the OLC and other initiatives,
we train farmers to develop water
management plans that mitigate risk
and minimise adverse impacts on
water supply. In 2016, we reached over
100,000 smallholders with water
conservation education and support.
Over 8,600 were supported specically
with water infrastructure such as
bore wells.
Olam Livelihood Charter farmers

inareas of water risk
(%)
The dam at the Olam Aviv coffee plantation in Tanzania holds 1.5 million m3 and is part of the Integrated
100
WaterManagement Plan for the Ruvuma river basin. In the background is the Olam Aviv Arabica coffee plantation
with shade trees.
80
60
Water reduction in India sugarcane (AWS) certication. This strengthened
production our existing efforts to adhere to global
best practice in collaborative water
40 In India, cultivating 1 kg of sugar cane
management, and helped to ensure
can require between 1,500 and
long-term water security for the
20 3,000litres of water. With the support
300,000 people living in the Ruvuma
of partners IFC, Hindustan Unilever
River Basin.
0 Foundation, Solidaridad and New
Cocoa Coffee Cotton Sugar Rice Edible Holland, Olams smallholder OLC With the assistance of Water Witness
and spices nuts programme in Maharastra and Madhya International, the International Water
Low Pradesh, which began in 2013, has Stewardship Programme (IWaSP),
Low-medium reached around 20,500 farmers across GIZand SGS, wehave worked in
Medium-high 22,500 ha of land. Overall productivity partnership with water users including
High has increased by 15% while thanks communities in the Ruvuma River
Extremely high towater stewardship programmes, Basin. Collaboratively, we developed
about62 billion litres have been saved ascenario plan for extreme weather
(water avoidance) over 3 years. In events such as droughts, ensuring the
2016, the initiative was awarded the fair use of water in times of scarcity
Most Notable Project of the Year by orwater stress. Theprocess helped
theConfederation of Indian Industry. increase transparency, providing
added reassurance on quality and
Ensuring our operations do not water-footprinting for customers.
impact on the water security of Additionally, we provided further Water,
others, Olam is the rst agri-business Hygiene and Sanitation (WASH)
globally toachieve AWS certication facilities for coffee plantation workers.
In 2016, our Aviv coffee plantation in
southern Tanzania became the rst
agri-business site in the world to
achieve Alliance for Water Stewardship

The Lemoore tomato processing facility in California has made considerable progress on reducing water consumption and food waste.
olamgroup.com 77
Environment
Our material areas: Water
Committed to growing
responsibly, Olam was
already addressing
water risks.
Implementing the AWS1
Standard in Tanzania
has strengthened that
effort and advanced
collaboration in pursuit
of long-term water
security in the region.
The example of Olams With almond plantations in both the northern and southern hemispheres, Olam offers customers year
implementation of the roundsupply.
Standard will be a Precision irrigation through cutting Minimising water in California

edge technology processing
springboard for rolling In our almond orchards in the USA and At our Lemoore tomato
out AWS across Africa, Australia, technology helps us monitor
plant health and needs in real-time,
processing plant:
as well as providing enabling optimum irrigation efciency.

584,830 metric tonnes of tomatoes
produce 92,942 metric tonnes of
In 2016, this technology helped to
critical learning for the reduce water use by up to 10%
tomato paste and 56,831 metric
tonnes of diced tomato per season
global AWS network. whilemaximising growth rate and
maintaining non-stress conditions for This requires about 596,744,593
the tree. litres of water per year
Adrian Sym, During the paste evaporation
We use Phytech Plantbeat technology
AWS Chief Executive process, 6,042,658 litres of water a
which combines sensor hardware
installed in the eld with data analysis day are removed from the tomatoes,
and algorithms to predict exact and used in the factory to reduce
irrigation requirements across the farm, demand for further water inputs
up to 5 days in advance. Instead of A closed-loop condensate return
having to wait to see water stress andcooling system reduces water
impacting the tree, we can irrigate at and energy consumption
the rst sign of stress, thus protecting
This water is discharged to Westlake
the tree and improving water efciency.
Farms and used to grow alfalfa
Zero landll for food waste
alltomato pomace and vine
materialis received by Gilton
Resource Recovery.
1
AWS Alliance for Water Stewardship.

Rather than let domestic wastewater seep into the ground or down the drain, the Olam Palm Gabon team assessing a buffer zone of low density forest. Buffer zones
team at the Kochi spices processing plant in India treat and use it to irrigate the are areas preserved between a plantation and a river. They ensure that any fertiliser
garden. The trees including coconut and jackfruit are ourishing as water from run-off, for example, doesnt enter the watercourse.
the 30 KL water treatment plant, recycled each day, is sprinkled over the garden
which is used by the 450 workers to spend their breaks. The coconuts are auctioned
off every few months at a fraction of the market price.
Improving wastewater management We incorporate all activities that could In our factories we have wastewater
for farms and factories affect wastewater quality into our quality standards for the water we
Integrated Water Resource discharge. It goes without saying that
In our farms and plantations, water can
Management plans and our Soil all Olam locations must comply with
run off the surface of the land, washing
Management plans. their legal licence to operate.
away valuable top soil, nutrients,
fertilisers and insecticide, which in turn In our plantations, we use remote In 2016, we did not receive any
can then impact on the quality of sensing, sophisticated modelling and environmental nes for water
nearby watercourses. ground surveys to map streams, rivers management.
and seasonal wetlands, which we
protect with a system of interconnected
buffer zones.
Progress on goals
*RDO6XVWDLQDEOHXVHRIZDWHUUHVRXUFHV0DWHULDODUHD:DWHU
,QFUHDVHGZDWHUXVHHIFLHQF\ New science-based water targets for Partnership developed to set science-based On target
in Olams direct operations 2020 to be developed in 2017. targets for Olam-managed plantations,
concessions and farms.
10% reduction in process water Partnership developed to set science-based On target

intensity in Olam Tier 1 factories from targets.
2013 baseline.
Improved water metering at 100% offactories.
Supplementary science-based
Baseline and target to be reviewed in light of
targets to be developed on a water
improved data from metering and business
risk basis.
restructuring.
,QFUHDVHGZDWHUXVHHIFLHQF\ 100% of priority supply chains to On track for OLC volumes. Started
in priority supply chains have Water Resource Management
OLC programme water risk mapping completed.
plans.
Extend risk mapping to non-OLC in2017.
8.3. Improved water discharge 100% compliance with wastewater Water discharge limits in place forOlam Tier 1 On target
TXDOLW\IURP2ODPVGLUHFW discharge limits. factories.
operations
Monthly reporting on discharge forTier 1 and
coffee plantations.
Olams upstream Farming Community of
Practice established to support the development
of erosion, nutrient and integrated pollution
management programmes.
/RQJWHUPHTXLWDEOHZDWHU 100% of Olams direct operations in Olam is rst agri-business globally and rst On target
access and usage high water risk areas to participate in business in Africa to have a site achieve the
a water stewardship programme. Alliance for Water Stewardship Standard for its
Aviv Coffee Plantation in Tanzania.
olamgroup.com 79
Environment
Our material areas
CLIMATE CHANGE
Climate change has profound effects on agriculture and global food security in
terms of its availability, accessibility and stability of supply. Conversely, agriculture
is a major contributor to climate change. Agriculture, forestry and other land use
are responsible for 24% of global greenhouse gas emissions (GHG). Mitigating
andadapting to climate change is an ever increasing focus for our own operations
and for our farmer suppliers.

Reducing GHG emissions from our
own farming and processing
operations1
Adapting our own farming operations
to build in climate resilience
29% 55,374 6th year Encouraging our farmer suppliers

and logistics providers to reduce
their GHG emissions and build
Improvement on our 2015 Smallholders trained on Reporting to the
inclimate resilience
carbon footprint from Climate-Smart practices Carbon Disclosure Project
Olams own operations under the Olam scored level B
Livelihood Charter
andcommitments
2nd year as joint Co-Chair of the
World Business Council for
Sustainable Development (WBCSD)
Climate-Smart Agriculture project.
Olam is leading the development of
Priority Area 1: building smallholder/
family farmer resilience
Presented at the UN Climate Talks
inMarrakesh (COP22) and the 2016
Global Landscapes Forum
We are guided by
Olam Environment Policy
Olam Plantations, Concessions and
Relevant SDGs Farms Code
Paris Climate Agreement
1
Olams plantations, concessions, farms and
Tier 1 processing and manufacturing facilities.

Olam is already actively undertaking valuation studies
incollaboration with other companies and agencies
todetermine a viable carbon-pricing framework.
Chris Brown
Vice President, Corporate Responsibility and Sustainability
Incentivising the internal pricing where a xed price is

assigned to each metric tonne of
Our Wood Products business in the
Republic of Congo has undertaken
transition to a low carbon emissions which could then be such projects and while the process
economy incorporated into prot-and-loss is lengthy and complex, progress
statements; and nally internal taxes isbeing made.
If something is free, we will use it which could be levied upon the
indiscriminately. And the global But incentives must also come into
business units for their direct play for the smallholder farmers. How
community has. operational emissions to support do we convince them to take up these
Fossil-fuelled growth, and the investment in clean technologies. new methods called Climate-Smart
emission of greenhouse gases that We are already making good Agriculture when their family has
accompanies it, has led the world to progress, having consistently cut our been farming a certain way for
climate change that will have major carbon footprint year-on-year, and we generations? Or help them
consequences for millions of people will continue to limit our footprint even understand why they cant expand
and the natural world around us. as we grow to scale. But even with into the forest next door to grow more
This is why we, despite being a this progress, we know more needs cocoa when their yields are so low
prot-driven company, have called tobe done. after decades of under-investment?
fora tax on carbon. Commercial Energy efciency on its own is not Explaining these concepts to farmers
enterprises must be incentivised to sufcient to limit the global with little or no education can be very
decouple growth from carbon and temperature rise to 2C by 2100, as challenging. Certication premiums
there must be a higher cost to doing described by the Paris Climate are one incentive but not every
business as usual if companies are Agreement at COP21 in 2015. It may customer wants to pay for
unwilling to change. sound insignicant but given the certication. We must therefore focus
difference between todays average continually on helping farmers to
Only then can we stimulate a
global temperature and the average increase yields and quality by
concerted effort to increase fossil-fuel
global temperature during the last Ice working directly with them, while
efciency and, more crucially,
Age isonly about 5C, it really isnt. collaborating with peers, NGOs and
encourage innovation into alternative
governments at a country and sector
energies and efciency measures. Carbon pricing is one way to level. For many farmers, there is no
On our part, Olam is already actively contribute to achievement of this short-term incentive, rather they are
undertaking valuation studies in objective, but there are other options putting their trust in our hands, which
collaboration with other companies that are not mutually exclusive. For is not always easy to carry when
and agencies to determine a viable example, were also actively exploring disease or weather means a harvest
carbon-pricing framework. Based on alternative energy, including biomass is not as abundant as hoped.
our work so far, we believe it would be and solar.
But it is clear that incentives, in their
fair to set an initial global tax of We have also called for incentives many guises, are crucial if we are
US$35 US$50 per tonne. This would including a greater backing for robust tohave any hope of preventing that
take into account the social costs and validated nancial mechanisms, 2Crise.
linked with impacts of greenhouse such as REDD+1 carbon credits to
gas emissions, such as subsidies for stimulate the reduction of emissions
crop failure or for health costs as a from deforestation and forest
result of pollution. degradation.
We are exploring 3 types of carbon This will foster conservation,
pricing: shadow pricing for our sustainable management of forests,
investment cases and business and enhancement of forest carbon
models to test planned projects under stocks, while ensuring that indigenous
a range of potential carbon prices; communities and biodiversity are
1
REDD+ Reducing Emissions from
notimpacted. Deforestation and forest Degradation
indeveloping countries scheme.
olamgroup.com 81
Environment
Our material areas: Climate change
In logistics, McCleskey Mills reached a new milestone Modern dairies produce as much manure as they do Solar investment during 2017 in the Ghana biscuit
in its 42-year history shipping peanuts to several milk. In our Rusmolco dairy operations in Russia, this processing facility will reduce emissions by 56 tonnes
major customers using the rail road. The new bulk waste is recycled as nitrogen fertiliser for the soil of Co2 per year. Preliminary feasibility studies have
railloading facility at Olam Rochelle in Georgia, growing the cows feed. Over 120,000 MT of manure is been undertaken for another 4 plants in Ghana.
USA,has reduced the number of lorries per year put to good use replacing over 1,500 MT of chemical
by699 vehicles, while maintaining all food safety fertilisers each year, reducing GHGs by 2,200 MT CO2e
requirements. peryear.
Decoupling carbon from business Olams carbon footprint result of our palm plantations in Gabon.
In processing, the intensity has
growth in direct operations
We have seen a 29% improvement on increased due to 8 new processing
As we grow our business, we cannot FY15 in our carbon footprint per tonne facilities made through the ADM
allow emissions from our operations of product produced (intensity). This acquisition at the end of 2015, as well
togrow at the same pace. By 2020, has been driven by our upstream as the Brooks peanut shelling
ourtarget is to reduce GHG intensity productivity and the carbon positive acquisition in 2016.
by 10% (per tonne of product) in
Olam-managed plantations,
concessions and farms; Tier 1 Carbon footprint for Olam-managed plantations, concessions and farms
FY16 FY15 FY14
processing and manufacturing
Scope 1 All direct GHG emissions 0.70 1.76 1.52
operations; and our marine vessels.
(million tonnes of CO2e)
Wedo this through:
Scope 2 Indirect GHG emissions 0.06 0.08 0.06
Increasing operational efciency from consumption of purchased
electricity, heat or steam
Avoiding High Carbon Stock (million tonnes of CO2e)
approach to lands for development Scope 1 + 2 0.76 1.84 1.58
(see the Land section within (million tonnes of CO2e)
this report) )RUHYHU\WRQQHRISURGXFW 0.98 3.54 4.15
Adopting Climate-Smart Agricultural SURGXFHGWKLVPDQ\WRQQHVRI (72% reduction (15% reduction
CO2e were generated on FY15) on FY14)
(CSA) practices.
Reducing fossil fuels Carbon footprint for Olams processing

At processing facilities, Fossil Fuel FY16 FY15 FY14
Flightpaths are being developed to Scope 1 All direct GHG emissions 0.67 0.33 0.38
(million tonnes of CO2e)
promote efciency and renewable
Scope 2 Indirect GHG emissions 0.19 0.12 0.18
resources. At the Olam Cocoa from consumption of purchased
processing plants in San Pedro and electricity, heat or steam
Abidjan in Cte dIvoire, the cocoa (million tonnes of CO2e)
beans shells/husks are used as Scope 1 + 2 0.86 0.45 0.56
biomass while a proportion is going to (million tonnes of CO2e)
the poultry industry, as the residual fat )RUHYHU\WRQQHRISURGXFW 0.27 0.21 0.26
SURGXFHGWKLVPDQ\WRQQHVRI (27% increase (23% reduction
can be used in animal feed. CO2e were generated on FY15) on FY14)

Promoting Climate-Smart Agriculture
in our supply chain Reporting to CDP1
The majority of emissions associated
with our business are not from our Average CDP scores Average CDP supplier
direct operations. Farmers, especially engagementrating
smallholders, are on the front line of
changing weather patterns with limited
capacity to adapt to its impacts.
Moving to Climate-Smart Agricultural
practices can play a signicant role in B B B
addressing global challenges by way

of 3 main pillars: C C C
Sustainably increasing agricultural
productivity and incomes C- C- C-
Adapting and building resilience to
climate change
Reducing and/or removing
greenhouse gases emissions, Total Global Sector Industry Olam Total Singapore Industry Olam
Average 500 Average Average Interna- Average Average Average Interna-
where possible. Average tional tional
Average Average
Supporting healthy, carbon-rich soil
CDP awarded Olam a B for climate change, CDP piloted an assessment in 2016 evaluating
Soil is the second biggest reservoir including emissions management, governance theability of organisations to engage with their
ofcarbon on the planet after the and strategy, risk and opportunity management supply chain on climate change to incentivise
oceans, and holds 4 times more andverication. signicant environmental changes. However,
in2016 just 23% of companies (which includes
carbon than all the plants and trees in
Olam) reported that they engaged with their own
the world. However, 33% of the worlds suppliers on GHG emissions and climate
soil is moderately to highly degraded changestrategies.
due toerosion (as topsoil is washed or
blown away) and nutrient depletion.
Across supply chains, we promote
CDP Forest sector benchmark CDP Water score peer comparision
contour ploughing or contour tillage,
micro-catchments and surface
mulching, as well as crop rotation
toprotect the soil and achieve
higher yields.
Nutrient loss is estimated to cost B B B B B B B B
sub-Saharan Africa US$68 billion per
B-
year. Although many smallholders still
cannot afford to buy synthetic fertiliser, C C
globally it is one of the fastest growing
sources of agricultural emissions.
Through the Olam Livelihood Charter,
we help farmers to learn how to
compost and mulch and, where
appropriate, to use synthetic fertilisers. Timber Palm Oil Total Self Industry Consumer Olam
Average Selected Average Staples Interna-
Olam International Companies Average tional
Overall CDP forests average Water Average
Average
Sector Average
Olam Internationals performance benchmarked Olam International score relative to companies

against peer companies in the Agricultural responding to CDP Water; companies in the
Production sector and the 2016 CDP Forests sample. regional sample; and sector peers.
1
Formerly the Carbon Disclosure Project.
olamgroup.com 83
Environment
Our material areas: Climate change
Thai rice farmers from the SRP pilot programme in Ubon Ratchathani. Young glyricidia shade tree (smallest leaf) next to young banana (largest leaf)
andyoung cocoa tree.
Reducing methane emissions environmental sustainability and Creating biodiverse, resilient

About 25% of global man-made business protability. Our 5-year micro-climates
warming is from methane emissions, commitment will bring the Standard to
Planting leguminous shade trees
including signicant proportions from 16,000 farmers in Thailand and
brings many benets to cocoa and
dairy and rice production. Rice is 10,000in Vietnam by 2022. We are
coffee landscapes. They increase
unusually water tolerant, so to prevent currently the only private company
productivity and resilience of crops,
weeds and pests, farmers typically toback the Thai Governments
support biodiversity and natural pest
ood elds. However, not only does this Nationally Appropriate (GHG)
deterrents, help maintain soil quality
use vast amounts of water but as Mitigation Action (NAMA).
and contribute to carbon sequestration
submerged weeds and vegetation rot through reforestation.
they release methane between 50 Ensuring livelihoods are not
compromised Through the OLC and other initiatives,
and 100 million tonnes each year.
we work to educate smallholders, as
One of the challenges in smallholder
We partnered with UNEP, International shade trees often have been cut down
programmes is gaining farmers trust
Rice Research Institute (IRRI), German for rewood or saplings removed
and motivating them to change their
development agency GIZ, Mars and during droughts as they are believed to
traditional ways of farming. For the
others to establish the Sustainable Rice be too thirsty. In Cte dIvoire, in
Ubon Ratchathani project, Olam was
Platform (SRP), and the rst projects partnership with local timber
able to reach more farmers by
were vetted using the scientically- companies and in-line with the new
partnering with the well-known Thai
veried SRP standard in 2016. Rainforest Alliance Sustainable
Rice Department. We also ensured
In Thailand, Olam has partnered with Agricultural Network standards, we
abest price and quality guarantee.
Better Rice Initiative Asia (BRIA), GIZ, now encourage cocoa farmers to plant
Weengaged a specic miller and
Bayer and the Thai Rice Department 400 forestry and shade trees per
ourbuyers ensured the farmers could
toroll out a trial project in Ubon hectare. This is a big ask but we are
claim the highest observed paddy
Ratchathani province in northeast seeing improvements. In 2015, the
price to save them from risking a lower
Thailand, which 71 rice farmers joined average planted was 50 per hectare
price at our delivery point.
in its pilot year. The Standard goes and in 2016 it had increased to 100.
beyond methane reduction and helps In2016, cooperative farmers planted
farmers improve their farm 193,000 leguminous shade trees
management systems, as well as covering 1.9 million hybrid
improve labour conditions, cocoa seedlings.

Progress on goals
*2$/5HGXFHGJUHHQKRXVHJDVHPLVVLRQV0DWHULDODUHD&OLPDWHFKDQJH
,QFUHDVHGHQHUJ\HIFLHQF\ During FY17, developing science- Energy efciency assessments conducted. On target
based targets for total Olam GHG Twelve Tier 1 processing and manufacturing
emissions from which the 2020 plants with highest potential have been selected
metric will be determined. for implementing ISO 50 001 Energy
Management System.
5.2. Avoided GHG emissions All Olam farms, plantations and Tier 1 Olam Palm Gabon is carbon positive. On target
factories to have implemented their
2020 GHG reduction plans
(1) operational efciency
(2) Avoid High Carbon Stocks for
land development
(3) Climate-Smart Agricultural
practices.
,QFUHDVHGVKDUHRIUHQHZDEOH 25% of energy derived from Sugar, rice and coffee Top Tier processing and On target
energy renewable and biomass sources at manufacturing sites 15% renewable and
Olams Tier 1 factories (from 2015 biomass energy sources.
baseline 15%).
*2$/,QFUHDVHGUHVLOLHQFHWRFOLPDWHUHODWHGULVNV0DWHULDODUHD&OLPDWHFKDQJH
6.1. Reduced agricultural Implement the Olam 2020 Climate-Smart Agriculture measures On target
YXOQHUDELOLW\WRFOLPDWHULVNVIRU Climate-Smart Agriculture (CSSA) incorporated into OLC principles of
2/&IDUPHUVDQG2ODPPDQDJHG Programme. Environment, Social Investment and
plantations, concessions and ImprovedYield.
Resilience impact to be launched in
IDUPV
FY17 as part of WBCSD CSA CSA measures incorporated into Olam
programme. Plantations, Concessions and Farms Code.
olamgroup.com 85
General information
This General Information is intended to help readers understand

the bases ofour nancial reporting and analysis contained in this
Annual Report 2016.
Important changes Business segmentation and reporting

Change in scal year-end to 31 December For nancial reporting purposes, we organise our 18
In 2015, the Company (Olam International Limited) changed business platforms into ve segments Edible Nuts, Spices
its scal year-end from 30 June to 31 December. With this and Vegetable Ingredients; Confectionery and Beverage
change, the Companys scal year 2015 (FY2015) was an Ingredients; Food Staples and Packaged Foods; Industrial
18-month period from 1 July 2014 to 31 December 2015. Raw Materials, Ag Logistics and Infrastructure (renamed
Starting with 2016 (FY2016), the Company follows a January from Industrial Raw Materials to reect the principal activities
to December scal year. To facilitate like-for-like comparison, ofthe Gabon Special Economic Zone within the segment);
the nancial results for the 12-month FY2016 are presented andCommodity Financial Services. The table below shows
in the Financial and performance highlights (pages 8 to 11) the distribution of platforms across these ve segments.
and the Group COOs review (pages 18 to 35) against those 5 business segments 18 platforms
for the same corresponding 12-month period in 2015, as well
(GLEOH1XWV 1. Edible Nuts (cashew, peanuts,
as 2012 to 2014, unless otherwise indicated.
Spices and almonds, hazelnuts,
The audited statutory accounts on pages 1 to 86 of the Vegetable Ingredients pistachios, walnuts, sesame
Financial Report present the Financial Statements and Notes and beans including pulses,
for the 12-month FY2016 against the preceding the 18-month lentils and peas)
FY2015. The nancial statements presented in this section 2. Spices and Vegetable
are therefore not comparable between the two periods. Ingredients (including pepper,
Changes in accounting standards, policies and restatements onion, garlic, capsicums
and tomato)
The Group has adopted all the new and revised standards
which are effective for annual nancial periods beginning on &RQIHFWLRQHU\DQG 3. Cocoa
or after 1 January 2016. These include Amendments to FRS Beverage Ingredients 4. Coffee
16 and FRS 41 Agriculture: Bearer Plants and early adoption Food Staples and 5. Rice
of FRS 109 Financial Instruments. As a result of these Packaged Foods 6. Sugar and Sweeteners
amendments, the Consolidated Balance Sheet of the Group 7. Grains and Animal Feed
as at 1 July 2014 and 31 December 2015 as well as the 8. Edible Oils
Consolidated Prot and Loss Account and Consolidated 9. Dairy
Cash Flow Statement for the 18 months ended
10. Packaged Foods
31 December 2015 have been restated. These amendments
and other changes in accounting standards and their impact Industrial Raw 11. Cotton
are detailed in the Notes to Financial Statements. Materials, 12. Wood Products
$J/RJLVWLFV 13. Rubber
DQG,QIUDVWUXFWXUH 14. Fertiliser
15. Gabon Special Economic
Zone (GSEZincluding ports
and infrastructure)
Commodity Financial 16. Risk Management Solutions
Services (CFS) 17. Market-making,
Volatility Trading and
Asset Management
18. Trade and Structured Finance

In addition, we report our nancial performance on the Other Operating Expenses: Unrealised foreign exchange
various value chain initiatives across three value chain gain/loss and other expenses
segments as follows: 1HW&KDQJHVLQ)DLU9DOXHRI%LRORJLFDO$VVHWV Records
3 value chain segments Value chain activity changes in the fair value of agricultural produce growing on
Upstream Includes all activities relating to bearer plants and livestock
farming (annual row crops), Exceptional Items: One-off, non-recurring items, including
plantations (perennial tree crops), negative goodwill and related transaction costs, gain/loss
Dairy farming and onsale of assets/business, gain/loss on buyback of bonds,
forest concessions impairment loss, nance charges on pre-payment of loans
Supply chain Includes all activities connected and non-recurring business restructuring expenses.
with origination, sourcing, primary Taxexpenses associated with these items are also
processing, logistics, trading, presentedasExceptional Items.
marketing (including value-added PAT: Net prot after tax
services) and risk management of
agricultural products and the PATMI: PAT less minority interest
CFS segment Operational PATMI: PATMI excluding Exceptional Items
Midstream Includes all activities relating to EBITDA: Earnings Before Interest, Tax, Depreciation and
and downstream secondary processing, contract Amortisation which includes results of jointly controlled
manufacturing, branded entitles and associates, minority interest, and excludes
distribution, private label activities Exceptional Items
and Ag Logistics and Infrastructure
Invested Capital (IC): Excludes cash and bank balances,
Note: The 2012 2016 results for the CFS segment do not include those of
Trade and Structured Finance.
deferred tax assets, xed deposits, other current/non-current
assets (other than option premiums payable/receivable) and
Denitions of key nancial metrics fair value of derivative assets on bonds
The denitions for the key nancial metrics are as follows: (%,7'$,& EBITDA on average invested capital based
onbeginning and end-of-period invested capital
Sales Volume: Sale of goods in metric tonne equivalent.
There are no associated volumes for CFS and 1HW*HDULQJ Ratio of Net Debt (gross debt less cash)
GSEZ platforms toEquity (before fair value adjustment reserves)
Revenue: Sale of goods and services 1HW*HDULQJDGMXVWHG Net gearing adjusted for readily
marketable inventories that are liquid, hedged and/or sold
Other Income: Includes sale of scrap materials,
forward, operating as near-cash assets on the balance
commissions and claims income and fair value gain on
sheet, and secured receivables are supported by letters
investments held for trading. Negative goodwill, gain on sale
ofcredit or documents through banks
of assets and other non-recurring items which are part of
Other Income in the nancial statements are treated as Free Cash Flow to Firm (FCFF): Operating cash ow less
Exceptional Items. changes in working capital, cash taxes, capital expenditures
and investments
&RVWRI6DOHV Cost of goods sold, shipping and logistics,
commissions and claims expenses and the net measurement Free Cash Flow to Equity (FCFE): FCFF less net
of derivative assets interest paid
Overhead Expenses: Employee benet costs,
manufacturing overheads, travel expenses and other
direct expenses
olamgroup.com 87
General information
Disclaimer Because these forward-looking statements involve risks and

Certain sections of our Annual Report 2016 have been uncertainties, there are important factors that could cause
audited. The sections that have been audited are set out actual reports to differ materially from those expressed or
onpages 1 to 86 of the Financial Report. Readers should implied by these forward-looking statements, including
note that legislation inSingapore governing the preparation among others, competitive pricing and activity, demand
and dissemination ofnancial statements may differ from levels for the products that we supply, cost variances, the
legislation in other jurisdictions. ability to maintain and manage key supplier and customer
relationships, supply chain sources, currency values, interest
Except where you are a shareholder, this material is provided rates, the ability to integrate acquisitions and complete
for information only and is not, in particular, intended to planned divestitures, physical risks, environmental risks,
confer any legal rights on you. This Annual Report does not theability to manage regulatory, tax and legal matters and
constitute an invitation to invest in the Companys shares. Any resolve pending matters within current estimates, legislative,
decision you make relying on this information is solely your scal and regulatory developments, political, economic and
responsibility. The information given is as of the dates social conditions in the geographic markets where the Group
specied, is not updated and any forward-looking statement operates and new or changed priorities of the Companys or
is made subject to the reservation specied in the its subsidiaries Boards. Further details of potential risks and
following paragraph. uncertainties affecting the Group are updated in the Groups
Offering Circular on its US$5.0 billion Euro Medium Term
Cautionary statement Note Programme dated 23 November 2016.
This Annual Report may contain forward-looking statements. These forward-looking statements speak only as of the date
Words such as expect, anticipate, intend or the negative of this Annual Report. Except as required by any applicable
use of these terms and other similar expressions of future law or regulation, the Group expressly disclaims any
performance or results and their negatives are intended to obligation or undertaking to release publicly any updates or
identify such forward-looking statements. These forward- revision to any forward-looking statements contained herein
looking statements are based upon current expectations and to reect any change in the Groups expectations with regard
assumptions regarding anticipated developments and other thereto or any change in events, conditions or circumstances
factors affecting the Group. They are not historical facts, nor on which any such statement is based.
are they guarantees of future performance.

STAY UP TO DATE
olamgroup.com
@olam
Olam International Limited
9 Temasek Boulevard
#11-02 Suntec Tower Two
Singapore 038989
Telephone (65) 6339 4100
Facsimile (65) 6339 9755
olamgroup.com

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Strategy Report

Annual Report 2016

be read independently; however, for the

This chapter offers narrative about

These are available to download at olamgroup.com/investor-relations

Group CEO perspective

Our theme, Maximising We made a signicant commitment

in order to build an wider globaltrends and challenges

2 Olam International Limited Annual Report 2016

Our Current Core and Future New Cores

Selective Upstream Selective Downstream

Aligning the organisation to execute our strategy

Vertical Assets Horizontal Assets Diagonal Assets

4 Olam International Limited Annual Report 2016

HOW ARE WE GROWING RESPONSIBLY?

Material areas Social Environment

Goals Goal 1: Goal 3: Goal 5: Goal 6: Goal 7: Goal 8: Goal 9:

Goal 2: Goal 4: Goal 10:

FINANCIAL AND PERFORMANCE

Food Staples and

Asia, Australia and Middle East 29.4% 27.4%

Revenue Sales revenue by segment Sales revenue by region

Asia, Australia and Middle East 32.8%

Upstream 3,764.2 79.2 Invested EBITDA Invested EBITDA

8 Olam International Limited Annual Report 2016

16,000 15,542.1 1,500 600 597.2

13,924.5 14,021.9 14,415.8 500

Sales revenue Invested capital Operational Prot After Tax

25,000 20,000 400

15,000 12,500 11,412.2 11,560.7 250

10 Olam International Limited Annual Report 2016

Earnings Per Share Return On Equity Number of customers

25 24.0 18 24,000 22,900

5,500 5,398.3 200 25 23.7

2016 SOCIAL AND

Our Guiding Principles For anyone investing in the agricultural

12 Olam International Limited Annual Report 2016

Over 30 partnerships to 190,000 people in Over 26 billion

29% Improvement on 31% Improvement on Launch of the Global

WHERE WE PARTICIPATE AND HOW WE WIN

Products: almond, HECTARES materials in 2016

Confectionery and Cocoa

Food Staples and Dairy

Industrial Raw Materials, Cotton

Ag Logistics and Wood Products

Commodity Risk Management Solutions

At the grower end, we out-origin our competition by

Core We have built distinctive capabilities in 4 areas:

14 Olam International Limited Annual Report 2016

Primary processing Food safety, quality

Sales and 3/$176

Risk management and

Packaged foods manufactured and

Gabon Special Economic Zone2

We focus on building leadership positions We grow market share in our

3. Privileged Assets and Networks (Sourcing Network, Customer Network)

4. Stakeholder Management capability

They live our values, are passionate, responsive, reliable, ambitious,

Group COOs review

STEADY PROGRESS IN 2016 ON IMPROVED

18 Olam International Limited Annual Report 2016

Earnings Before Interest, Tax, Invested capital

Group COOs review

Sales and 3/$176