Investing in the Future University Competition 2023

by Pictet Asset Management

Proposal Cover Sheet

Requirement: The proposal must be written in English and must not exceed 1,500 words
(excluding the reference section); use a 12-point Arial font with 1 line spacing.
Due on: 12nn (HKT/SGT), 13 November 2023 (Monday)
Submission Instructions:
 Please ensure that you provide the accurate information in below and attach this cover
sheet to your proposal.
 Upload the proposal in word format using the designated link provided in the email sent
to team leaders.
 Please name the proposal file using the format: Pictet - Team Name - Team Leader’s
first and last name. (Example: Pictet – Team Sustainability – Marco Leung). Kindly
ensure that you receive an acknowledgement email confirming your submission.
 Submissions that fail to comply with the requirements will be disqualified without further
notice.
Should you have any concerns or require further assistance, feel free to reach out to us at
PictetInvestingInTheFuture@ruderfinn.com.

Submission date: 13/11/2023

Team name (same as the one used during registration): THE DYNAMICS
Team leader’s contact email (same as the one used during registration):
KORXUENPANG@GMAIL.COM
University name: National Cheng Kung University
Region of university: Taiwan
Word count (excluding reference section): 1465

Our team hereby declares that this proposal represents original work and does not infringe upon
any intellectual property rights of any third party. Our proposal is the result of diligent research
conducted independently, using official information published by the selected company and
other reputable public information sources. We agree and acknowledge that Pictet Asset
Management's decisions regarding all aspects of the Competition as full and final, including but
not limited to rule interpretations, eligibility, disqualifications, and award allocations.
Section 1: Company & Sector Overview
Olam is a leading food and agri-business which is dedicated to conserving the
environment, strengthening communities, and increasing global food security. It has built
leadership positions in businesses such as cocoa, coffee, cotton, nuts and spices. Olam
comprises several operating groups- ofi (Olam Food Ingredients), Olam Agri, and the
Remaining Businesses of Olam Group. It is a publicly listed company in Singapore and
Temasek Holdings owns 51.4% of the total issued share capital of Olam. Olam is
headquartered in Singapore, its value chain spans over 60 countries and markets their own
brands directly to consumers in Africa. It engaged in sourcing, primary processing, exporting,
logistics, importing and distribution and marketing.

Section 2: Product and/or Service Description

Olam International aims at re-imagining global agriculture and food systems. So, they
focus on prosperous farmers and food systems, thriving communities and re-generation of the
living world. But as for this section, we will only emphasize on the re-generation of the living
world.

To tackle climate change, they have launched a study with Schneider Electric to improve
energy efficiencies or invest in renewable energy in processing operations. They also promote a
circular economy by operating co-generation facilities by using agricultural residues to generate
steam and energy.

As for maintaining healthy ecosystems, ofi launched a project in Ghana and Côte d’Ivoire
to protect forest habitat and biodiversity, reduce deforestation, and increase the storage of
carbon in trees. During 2021, they renewed its agreement to safeguard wildlife around the
Nouabale-Ndoki National Park and arrests were made in relation to trafficking. They have also
created Landscape Deforestation and Farm Deforestation Risk Indices to address deforestation
risks at sourcing areas and at farm levels.

Ofi agronomy teams are conducting leaf analysis to tailor crop nutrition management and
improve fertilizer use efficiency to manage soil health. In Peru, field technicians train farmers on
organic farming practices. This has helped smallholder farmers to achieve organic certification,
enabling them to improve soil organic matter and fertility.

To optimize water use, their coffee facility in Vietnam has installed a pH correction
system to enable condensate water from evaporators to be reused. They store rainwater runoff
in reservoirs for irrigation in the summer months and plant 3,000 shade trees on the estates to
preserve moisture in the soil. They installed drip irrigation for precise water and nutrient
distribution.

To minimize food loss and reduce emissions, they have developed a botanical
rodenticide to help curb rats. Besides, cascara as a by-product of coffee has been utilized by
them to create popular beverage infusions and concentrates. In Côte d’Ivoire, their cashew
team is recycling cashew shells to use as biomass in their processing facilities and sold to
external buyers for the same purpose.

In short words, we think that Olam is capable of forming a sustainable agriculture

platform for the sake of the environment. They have managed to implement customized
solutions on the five material areas that have been mentioned above to tackle the negative
impacts that the agriculture industry may bring to the environment. By saying so, we could see
that Olam is handling the environmental issues not only on the consequences of agriculture
development, while also committing to prevention on the developing process.

Cocoa Farmer Groups across 5 countries (Côte d’Ivoire , Ghana, Ecuador, Papua New Guinea
and Indonesia):
Agriculture: (GHG-related Natural Capital Costs (NCCs)）

Processing: Hidden cost of water use

Forest concessions in the Republic of the Congo (RoC):

1. 1.8 m ha of forest concessions managed by Olam are FSC certified.
2. Average annual GHG emissions avoided 746,280t CO₂, estimated social cost of US$67 m.

Fertilizer training in Thailand:

Rice Thailand: Estimated Natural Capital impact of water pollution and GHG emissions
associated with synthetic fertilizer use per tonne of rice (US$/tonne)
Section 3: Assessment of Growth Potential
i)
Olam's success in deploying technological solutions to address challenges such as
tracking supply chain transparency, farmer advisory services, and carbon measurement
initiatives has helped it realize that these solutions could also be commercially viable and made
available to its clients and other businesses. This suite of digital solutions can address
stakeholder demands along the entire value chain, from farmers upstream to multinational
clients downstream. Olam has been able to leverage some of its digital solutions like AtSource,
the Olam Farmer Information System (OFIS), and Olam Direct to meet the traceability and
sustainability needs of its customers and suppliers. Food traceability is essential for controlling
the risks that can affect the food supply chain. People tend to consume food that are traceable
to ensure their health.
Olam Agri delivers high-quality and sustainably manufactured timber from natural forest
concessions in the Republic of Congo, all of which are Forest Stewardship Council (FSC®)
certified. With one of the largest processing capacities for tropical hardwoods in Africa, their
harvesting capabilities and processing expertise allow them to treat various species and
produce specific dimensions of semi-finished and finished products to meet customers' needs.
This enables Olam to produce value-added products and then ship them to their customers
globally.
B2B complemented by higher value B2C downstream products in Olam. Olam Agri's
principal products include B2B products like flour and B2C products like semolina and pasta.
The market would not be restricted and foster adaptability in a dynamic business environment.
This dual approach will provide diverse commodities and consequently build a firm and broader
customer base.

ii)
In 2022, ofi established a new Ingredient Excellence Centre for coffee in Chicago and a
Customer Solutions Centre in Singapore, adding to a total of 15 innovation facilities worldwide.
This expansion fosters collaboration with customers and develop a robust pipeline for future
growth in the Ingredients & Solutions segment.

Ofi’s sustainability initiatives, including the Cocoa Compass and Coffee LENS strategies,
have ensured their sustainable impacts across global supply chains. Additionally, the company
announced ambitious sustainability targets for its almond orchards and farming operations
through the Almond Trail, underscoring commitments to environmental issues and community
support, aligned with the objective of achieving a 1.5°C pathway for emissions reduction. The
demonstrated success of ofi's sustainability initiatives, combined with ambitious targets and a
commitment to environmental stewardship, positions the company for future growth by fostering
a positive trajectory in the sustainable products market.

The company made strategic investments to bolster its channel extension through the
acquisitions of Club Coffee L.P. and Märsch Import Handels GmbH, aiming to strengthen its
foothold in the value-added sector. Ongoing investments in greenfield developments in Brazil
and New Zealand underscored ofi's commitment to its high-growth end-use categories,
including Bakery, Beverages, Chocolate & Confectionery, Savoury & Culinary, and Snacking.
This strategic focus positions the company at the forefront of emerging markets, paving the way
for sustained and diversified growth in the future.

iii)
Olam seeks to create a safe and inclusive workplace that supports diversity and equity.
This can bring global experience and local context to manage their business. We believe this
will help form a more integrated workplace that allows the interchange of innovative ideas
among employees from different backgrounds. Working in Olam also enables both personal and
organizational growth. Their capability building has been built around four main pillars:
Performance, Leadership and Personal Effectiveness, Organizational Culture, and Digital
Learning. By having these initiatives, employees of Olam will be capable in diverse fields that
will enhance the competitiveness of Olam’s manpower in the future. Besides, Olam will identify,
retain and develop the best talent by providing equal opportunities to progress in their roles. As
a result, the strengths of them can be developed and benefit the future growth of Olam and
therefore prevent brain drain and waste of company’s resources.

iv)
As we have provided with the environmental solutions and techniques that Olam
operates, we believe that Olam is potentially a worth-investing company. Judging by the efforts
Olam has done on creating a sustainable agriculture platform, it has also shaped Olam into a
sustainable business because nowadays the society doesn’t just emphasize on the benefits that
a company may bring, we also care about how the company can contribute to this world, or in
other words, to the environment.
Section 4: References
Section 1:
https://www.olamgroup.com/about-olam.html
https://www.olamgroup.com/investors/shareholder-centre/shareholding-structure.html
Section 2:

https://www.olamgroup.com/about-olam/our-purpose.html
https://www.olamgroup.com/sustainability/sustainability-framework.html
https://www.olamgroup.com/content/dam/olamgroup/investor-relations/ir-library/annual-reports/
annual-reports-pdfs/2022/olam_annual_report_2022.pdf#page=101

Section 3:

https://www.olamgroup.com/content/dam/olamgroup/investor-relations/ir-library/annual-reports/
annual-reports-pdfs/2022/olam_annual_report_2022.pdf
https://www.olamgroup.com/content/dam/olamgroup/investor-relations/ir-library/agm-egm/
2023/egm-mar-2023/olam-group-limited-circular-dated-6-march-2023.pdf
https://www.olamgroup.com/investors/strategy.html

[End of Proposal]