Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Executives

Aditya Renjen – General Manager, IR

Shekhar Anantharaman – Executive Director, Finance and Business Development

Sunny Verghese – Managing Director and CEO

Analysts

Thilan Wickram – HSBC

Tanuj Shori – Nomura

Adrian Foulger – Standard Chartered

Chuck Spencer – Morgan Stanley

Patrick Yau – Citi

Conrad Werner – Macquarie

Olam International Limited (OTCPK:OLMIF) F1Q14 Earnings Call November 14, 2013 4:30 AM ET

Aditya Renjen

Good evening, ladies and gentlemen. Welcome to Olam’s Third Quarter FY14 Results Briefing. Let me start by introducing the team from Olam. To my left is, Sunny Verghese, Group Managing Director and CEO; to his left is Shekhar Anantharaman, Executive Director of Finance and Business Development; and to the far left is Muthu Kumar, President, Corporate Finance, I’m Aditya from the Investor Relations team.

We’ll start off this evening by a presentation by Shekhar, after which we’ll open the floor for questions. For those joining us via the webcast, they can post their questions online at any time. So, thank you.

And over to you, Shekhar.

Shekhar Anantharaman

Thank you, Aditya. And welcome ladies and gentlemen to our first quarter briefing for this financial year. So, I will assume the usual disclaimers are read and understood based to the agenda that we hope to cover in the next 30 odd minutes.

So, I’d like to focus firstly on the highlights of this quarter, being four months since the year – since last key highlights, both financial as well as qualitative. And then move to strategic recaps, looking at what this quarter means for the strategic plan that we announced in April, which is about seven months into the strategic plan. And how we are faring and what’s the progress on the various on the four key priorities and the fixed pathway that we identified? Well, then spend a little bit time on the consolidated financial performance and then focus on the summary.

One thing that you would all notice with the results that you’re glancing through as we talk is the changes that we have made as we had talked about. So this is part of a journey wherein we’re trying to improve the overall communication, simplify our communication as well as ensure that our business is focused on the right metric, the communication focuses on those metrics. And we are able to expand the business and improve the understanding of our business.

And to that effect, in this particular, starting from this quarter, we have a new MD&A, which is, which you see in your fax, which explains the business around the metrics that we have identified in our strategic plan. The message is also slightly different, and you’ll also find in this presentation again focuses on the same metrics.

So, the intent here is to focus action as well as focus the communication on the metric that really matter. And simplify our overall communication and make it more transparent and make it more understandable putting the business in its right perspective.

So, we must say that this is the start of a journey. We have got a lot of feedback before implementing this new communication pack. And I’m sure at the end of this and going forward we will improve this based on your feedback.

So, with regards to the first quarter, I think the first key thing is our first quarter as you all know is our quietest quarter. And but it’s been a good steady start to the year. And we’re quite pleased that both in terms of profit performance as well cash flow performance, we are moving around the milestone that we have set for ourselves. We have an EBITDA growth of 12% and Patni (ph) segment of about 6%.

And equally pleasing is the fact that the free cash flow generation for this quarter is a positive number. And but more than the number itself it is a significant improvement over the previous quarter last year. So, on the twin objective that we have highlighted in our strategic plan of pursuing both profitable growth as well as improving our cash flow generation, we think that the quarter will provide some milestone, although it is one quarter for the year. And the rest of the year is still ahead. But it’s a good start to the year.

We’re also pleased with some of the more boring mundane stuff but which is very important continue to deliver on this performance. And the first part is and improved operating efficiency and you’ll note that the – in terms of overhead growth, it’s significantly reduced sales of growth compared to what we have – as you’ve seen in the past with the mix of acquisitions and the investments that we’re making towards our strategic plan, we have been growing over it in the high-teens.

And you see in this quarter and going forward that that pace on overhead growth will come down. And this is on the basis of a lot of sustained cost management initiatives that you’re implementing across the company.

We also see a reduced pace of CapEx as (inaudible), so it’s reduced compared to what we were spending but it’s still an incremental S$1.5 billion that we expect to spend for the next three years. So, we are focused on implementing that revised CapEx program but it’s only reduced compared to the CapEx that we were implementing over the last three odd years.

Lastly, another key metrics that we’re focused on is to ensure that the net dealing doesn’t remain within a ceiling of two that we have set out in the strategic plan period. And we are pleased to announce to there is a set target this quarter, we are below two times getting there to be a set up.

Last but not the least we have made two announcements post the quarter end. One which is asset disposal of Gin in Australia and more recently as of last night the sale and lease-back of the Australian Almond Orchards, and both these are critical pieces in the journey that we identified and the key priorities that we identified in the strategic plan. So, overall terms, good steady, reasonable of setup financials for quarter one, and good progress towards the key strategic plan priorities.

So, I’ll move straight to just providing and capsulating the actions that we have taken, towards key pathways that were identified in the strategic plan, six months ago. A lot of you and a lot of other investors have spoken to us and feeling a bit impatient about the progress along these priorities.

And it’s tough to convert each of these priorities into action over night. I can assure that we have been working hard on each one of these priorities, each one of these pathways. And if you look at from an overall basis, what you’ve achieved so far, we certainly believe that a significant improvement in cash flow generation as you’ll see in the numbers. We certainly believe that in terms of reduction of gearing we are below the norms that we have set for – the wise norms that we have set for ourselves.

So we are looking at optimizing the shape of our portfolio reducing the complexity. And there have been four business units which have been restructured quite comprehensively. And 27 profit centers that have been shut down. And there is a lot of actions that have been taken to better improve the understanding of our business amongst our key stakeholders which include Investor Day, which include Field Visit and which includes the Revised Reporting Formats that we are launching from this quarter.

On an overall number basis, because lot of ending this year so it’s like a number. The five key initiatives that we have concluded and announced so far have overall term release, release a cash of S$370 million, and a gain on these five initiates of S$95 million.

So two points here, one, five asset disposals that we have done, two of which are sale and lease-back here, and three are – two are asset disposals of non-core assets. And one is a divestment of 25% stake which is a noodle of the noodles business. Between these five, which were key priorities for us in the strategic plan, we have actually concluded an ability to reduce our balance sheet by S$400 million.

But more importantly reaffirm the value of these assets and the value that we’ve added to these assets after we acquired them. So we’re quite pleased with that outcome along those priorities that we identified.

In terms of details on the specific pathways, the CapEx has been scaled down as per the revised S$1.5 billion plan in the next three years. And if you note that in this quarter, it’s about 25% lower than what it was in Q1 of last year.

On the area of optimizing balance sheet, we have announced two transactions, Australia Almond, sale and lease-back as well as the U.S. have announced previously in the last year. In terms of unlocking value from our assets, there have been two balances in the sale of the basmati rice mill as well as sale of the cotton gin more recently as well as the divestment of 25% stake into standard food.

So put together, these priorities, pathways two and three is the S$370 in cash generation as well as S$95 million odd in gains that we are – we have already fortified.

In terms of the shape – optimizing the shape of the portfolio, I already mentioned four deals have been restructured quite comprehensively. And two of those have already started delivering results both sugar and the dairy supply chain, both side delivering results in its new form and format. And the wool product and the theater business are on their way to start delivering hopefully soon in the revised format.

And again, in terms of improving operating efficiencies, while these things take time and this is a journey that we have started. But we’re pleased to see that there are results even in this quarter for you to take back with you.

And in terms of specific actions we have taken in terms of stakeholder communication, we have already held Investor Days for four deals. We have had a field visit with some of you have joined us on to Gabon and Nigeria. And then the changes that we have made starting today and hopefully all this will helping improving the key messaging around our building.

So, on all the six pathways there has been progress, there is beyond this a lot of actions happening of various priorities. And obviously as and when we are concluding those specification (ph) whatever is announce-able we will be sharing that with you.

So, please, rest assured that we remain focused on our total strategic plan that we announced and we’ll remain focused in the coming quarters in achieving the milestones against the same.

Since sale and lease-back of the Australian Almond just included yesterday, we’d just like to take a couple of minutes on this transaction which we think is an extremely – we’re very pleased with the outcome.

Firstly, the sales confirmation of S$200 million will help us reduce debt and improve our cash flows for the current year. We expect the transaction to get completed in the early part of Q3. So this will be something that will impact this particular year.

There is a one-time post tax gain of S$45 million expected which is again well hit the books this year. And this reiterates the value, we believe we bought these assets, of very comparative values four years ago, but the assets acquired distressed. And the value today at which we have been able to sell these assets to very select investors shows the amount of effort that’s gone in and the quality of effort that’s gone in to improve the value of these assets.

And the trees have been nursed back to help, with Olam at the first couple of years, we struggled with the yield with the trees had been distressed because of drought as well as the financial difficulties at the previous owners acts. But we have done a lot over the last four years and today the Orchard, this value at which we have been able to sell this particular asset shows the value that we have created – we have bought at as well as what we’ve added to these assets over the last four years.

We’d like to reiterate that we have continued complete rights over the complete harvest of all these assets. So therefore, in the profit flow that we have as well as what we expected to seek maturity from these Orchards, for the rest of the productive life of these assets, we’ll still accrue to overlap. And hence that is a very important part of this whole mechanism.

And we believe that in being able to negotiate and yield and lease rental to the investors which gives them yield at their comfortable risk and which is lower than our cost of debt as well as reducing some of the depreciation that we’ll have on these assets. It is a win-win for both the investors as well as for Olam. And that is really, what, is the most pleasing part about this whole transaction.

Consequently there will be a significant improvement in our returns. We expect our returns on the same assets because the reduction in the overall investment and the maintenance of our profit to be at least 25% better than what we are yielding today. And that’s about 600 basis points improvement in ROE. So, it’s a fairly significant impact on our EBITDA ratio as well as our overall returns to the company.

Lastly, it’s a really strong endorsement by a set of investors with whom we believe we can build a long-term partnership, not only in Australia but also in other parts of the world for other such investments that we have made or can make in the future. So, we are very pleased with the quality of investors that we’ve being able to attract. And it’s a consortium investors all of them, which have deep pockets and a very strong view on the agri sector and then appetite for the Agri sector.

So basically that’s the structure of the transaction. If there are any questions we’ll obviously take that offline. But there is an important transaction and important priority that we had outlined in our strategic plans, we are pleased that we have brought it to fruition within the first six months.

Moving forward to the consolidated financial statements, and we’re just going to focus on four or five key messages here. The first, which is a snapshot summary, we have roughly flat volumes compared to the Q1 of last year. We must remind that Q1 of last year was at 98% growth over the previous quarter. So, it was a very significant quarter last year because of grains and the rice volumes that increased quite significantly which we had talked about last year.

And so we are happy to be able to maintain that volume. So there has been volume growth in all segments except the grains and the rice segments, and the rice businesses. But all other segments are therefore showing good growth. And we expect that to grow to continue over the next three quarters.

In terms of revenue, you see far but that’s too – that’s a reflection of the commodity prices which have all pretty much been headed southward. Except one segment which is the Edible Nuts segments, all other segments have had fairly significant drop in prices.

But as you’re aware sale prices move up and down and that’s not really what’s important, our key value drivers are the volumes and the margins that we extract by our participation to the value chain.

So, because of the margin expansion that we have been able to extract from the investments that we have made in the mid-stream and the upstream message as well as in the core supply-chain that continues to work very well. You see a 12% increase in EBITDA despite flat volumes and 8% reduction in revenues. So which, contributes to a fact 6% growth over last year, S$45 million absolute size of patent.

If you look at the, it’s a busy slide so I just want to focus on three or four lines here. And you all have these numbers with you. The Patni (ph) growth if you try to break down, so first component of that apart from the – which contributes to EBITDA growth is reduction in the rate of over reductions that I mentioned. And that’s something that we expect to focus on and keep going on at it over the next quarters in the coming years.

For those of you who are focused on the bio-gains line, there is a reduction in bio-gains because the maturity profile of their asset. So as we have maintained consistently that we don’t treat bio-gains separately because we’re also charging off all the cost. So for those of you who consistently remove it, we hope that you’ll consider these results as without those bio-gains as bio-gains.

As far as the associate (ph) contribution is concerned, it’s slightly lower because of the both CPU prices as well as rubber prices being lower, so it’s slightly lower. And there is a higher depreciation charge because of the – as compared to the previous quarter, because almost S$1 million of assessed investment that has happened over the last 12 months.

So there is a pretty higher tax position and we’ve been more conservative. Although by the end of the year, we expect to be having an effective tax rate, lower, certainly lower than last year. But at this point of time, on a quarter-on-quarter it’s a higher tax provision.

So, on an overall basis, both are, what have contributed but really EBITDA and driving that EBITDA growth in the coming quarters which will really help us deliver the profit and the Patni target for the rest of the year.

Moving to segmental and just probably giving a snapshot of the EBITDA gross, our operating segment which is a growth of 12% that we talked about. You’ll notice that this is being done on an invested capital, which is more or less flat. And between 5/13 and now, and you’ll see as we go along to each segment that while fixed capital investment have grown between last year this time and now, the working capital has pretty much remained flat.

And that’s an important message everyone to leave all of you, we expect this EBITDA growth to continue but we would not be looking at increasing the invested capital the way it has been in the last two years, both, there will be some increases in fixed capital based on the plans that we have gone up. Working capital also will become increased based on volume and prices, but are not – we expect the EBITDA growth to be better than the increase – the rate of increase in the invested capital all other things being equal.

So, moving to the four segments, spices and vegetable ingredients segment has had a very good start to the year. This segment has grown with us quite appreciably over the last four years. And in this slide we are trying to give you the last four years as well as the quarter-on-quarter comparison.

And you’ll notice that there is almost a 25% increase in EBITDA on a quarter-on-quarter basis. And almost one third of the last year’s EBITDA already booked into in quarter one itself.

Primary drivers have been almonds which have had a very good volume, good pricing from the upstream side, that’s had a very good start. The onion business, the garlic business in the U.S., the tomato business which is underperforming since the previous last two years has also had a good turnaround and then got off to a good start. There hazelnut business is again operating at almost full capacity now.

So, almost across the board in this segment there has been a good start to the year. The only two businesses which are kind of probably not tracking fully, one is the peanut business because of upstream Argentina business, rest of the peanut business is going very well. And the cashew business wherein the new mechanical factories are still not reaching full potential so therefore, those are probably the only two drags in this segment, otherwise it’s got off to a very good start.

When you look at the invested capital, you’ll see that this business has had quite a lot of investment over the last four years in fixed capital. The working capital has pretty much remained flat. And between the end of FY13 as well as now again working capital is more or less flat and fixed cable is also more or less flat.

So we expect this business to be, coming out from cash products, not as much investment. Of course there will be more investments in working capital to match the growth. But we would expect the EBITDA growth to be ahead of the curve and we’ll expect full value for these investments to rebate.

Moving to the Confectionery and Beverage Ingredients, this is a quiet quarter for this segment. And the business is yet to happen for both cocoa and coffee, the seasons are all ahead. So, while some procurement has started and cocoa is off to a good start with the procurement season in West Africa, but coffee seasons are all ahead and have to happen.

The investments we have made in upstream coffee plantations, cocoa plantations as well as mid-stream and soluble coffee, both in terms of our Greenfield and – sorry, in Vietnam and the Australia acquisition are all going very well. The cocoa new plant in Ivory Coast is also on target, on time. And we’ll expect to go into trial production in the first quarter of next year.

So, a lot of margin improvements in this segment, a lot of fixed assets improvement investment just in the last year. There are all out there for us to extract value from. So, a good start to the quarter but probably a lot left in the next three quarters yet to happen.

Food Staples & Packaged Foods has had last couple of years have been couple of years have been quite spectacular in terms of EBITDA growth, in terms of the investment that we’ve made across the six products that constitute this segment. And in comparison, we’ve had a slow start to the year, this year. But this is on top of an exceptional last quarter last year, exceptional first quarter last year.

So, we see EBITDA is moving at a slower pace here. But this is also a very good quarter prior period comparison. You’ll see that this is one segment in which we’ve done significant amount of working capital optimization compared to the previous year. And we expect that in terms of working capital, this business will be using lesser as well as but without hurting it’s EBITDA generation capacity.

We have very good trajectory on the Wheat Flour Mills, which have been completed the expansion in both Nigeria and Ghana has been completed. The packaged foods businesses are also off to a good start. The Indonesian Sugar Refinery is doing very well. The supply-chain business in palm, in dairy, in sugar, which has been in its new restructured form are all tracking quite well.

There is obviously a lot of gestation in the palm plantation, there is a lot of fixed capping is getting filled in this end. Obviously that won’t be delivering in this immediately. But in overall terms we’re quite hopeful that this segment will catch up in the coming three quarters and with the tapering out of some of the investment that we’ve been putting into this business, you’ll see improved the royalty margins in the coming quarters.

Last but not the least, industrial raw materials, this probably the place of the first quarter is very insignificant. It’s a 32% absolute increase quarter-over-quarter but in terms of what needs to happen in the rest of the year, it’s a very insignificant part. But the good news here is that quarter is off to a good start, it’s had two challenging years in the last couple of years, it’s off to a good start, volumes and margins.

The wool products business has had a lot of restructuring done last year. And there is a little bit more to go this year so that is going to be. But we have achieved significant reduction in the overheads and wool product is something that’s achieved S$65 million down to almost half of it, at S$32 million. So again, enough restructures gone, we expect that business to start delivering.

The fertilizer trading volumes have been slightly low as compared to previous years. But otherwise, as compared to the previous year. But on overall basis – we have done a lot in terms of working capital optimization in this segment also. And you would see that the working capital has reduced over S$200 million compared to even the start of the year as well as compared to the previous year.

So, again, that’s the fourth segment. The fifth segment which has not done well, which we didn’t put in the slide, but you would see in the numbers that you all have, is a CFS segment. We restructured the segment – the business into two separate parts, the funds business as well as market making long-trading business.

It’s been a tough start to the year, with an operating EBITDA loss some because of the restructuring that we have done and some because of overall market conditions. So, we will be keeping a tight focus on this business. In overall terms it’s not extremely material to the overall size of our EBITDA expected for the year. But we are going to be keeping a tight watch on that business and that business in its new form we believe will start delivering in the coming quarters.

That’s the segmental overview. Moving to cash and cash flow, which is the primary focus. In the annual results, we had talked about the last four years of trajectory in the improvement in cash flow that we are focused on. We are pleased to say that on all the key things that we can impact, which is the cash flow from operations, there has been an improvement, the changes in working capital.

If you see the extent of working capital increase that happened in Q1 of last year has what has happened this year while there was a slight increase. But there has been a significant lesser use of capital – working capital. The tax paid margin we have and the CapEx investments have been almost 25% lower.

So, put together for this quarter, there is a positive free cash flow to firm. And negative free cash flow to equity holders. But even in the FCFE, you’ll see a significant trajectory change between what was there this last quarter, last year this quarter.

And so, I think the important part here is not the absolute value of the free cash flow that we’re generating, it’s the significant trajectory and improvement that we are creating. And that’s what is an important thing for us. Our business is seasonal and there will be volatility in sometimes in spices and therefore working capital utilization. So we can’t pin-point predicted. But we are – we can assure you that we’re focused in all the things that we can manage to ensure that there is hedge in the positive direction and face them.

The balance sheet and gearing, I mentioned is pretty much maintained and maintained below 2, net of RMI. So, we are at an adjusted gearing of 0.57 which we feel very comfortable about and that provides us ample debt capacity in case we do EBIT.

More importantly the liquidity is solid, between cash of S$1.2 billion and near cash items of RMI hedge inventory and secure receivables of roughly about S$5 billion. And unutilized bank loans of roughly S$5.5 billion. We have almost S$12 billion of liquidity to cover total debt of S$8.5 billion, S$3 billion in short-term and S$5.5 in long term.

So meet our operating requirements, working capital requirements, CapEx requirements as well as any debt repayments, we have ample liquidity and more than ample liquidity.

We are also pleased with the diversified nature of the debts that we have and also more importantly in this quarter we have raised incremental debt refinanced both with IFC coming back and looking at project finance preferred projects as well as five-year revolving facility in the U.S. S$400 million. So, put together we were very pleased to raise this at very comparative rates, better than what we were during last year. And this bodes well for our overall debt cost as well as the diversified nature of our debt.

And as far as the cash-to-cash cycle is concerned, there is a marginal change. We are in peak season – we’re entering into our peak season. So, obviously both our advance of suppliers and inventories are high. But we’re quite pleased to see that we’re getting a lot of supplier credit. And on an overall basis, the cash-to-cash cycle remains almost constant between where it was last year.

So, to summarize and the key takeaway is that we hope you’ll leave that. First, it’s a good start, steady start to the year. We are very pleased that we are tracking the right nodes on both the objective of profit growth as well as free cash flow generation.

We are making very good progress and we hope that with a snapshot of the strategies that I presented you’ll see that we’re making good progress on all the key pathways that we have identified. The balance sheet remains strong, the liquidity position remains strong. Gearing remains within levels that we are comfortable with.

We’ve dramatically enhanced our stakeholder communication over the last six months. And we would welcome your feedback to see what are, the interesting gaps and how we can keep closing them as we go further. And this particular quarter’s results are hopefully one more step in that direction.

In the end, I think it’s all about execution. And that’s a dull boring mundane stuff. And that’s what we expect to be doing for the rest of the year and for the years to come. And it’s really extracting full value for investments that we have made, focused on executing properly against the revised CapEx plan that we have. So we are not getting excluded – we’re going to be investing S$1.5 billion to look at new growth ought to complete some of the initiatives that we have started.

We are looking to extract full operating efficiency, working capital optimization, all the other balance sheet optimization. And that’s really what we’ll be focused on and we hope that this quarter one results gives you a bit of flavor of that focus. And we’ll be happy to take any questions if you have. Thank you.

Question-and-Answer Session

Aditya Renjen

Thanks Shekhar. We are now open for questions. If you have a question, raise your hand and a mic will be brought to you.

Thilan Wickram – HSBC

I know with your EPS news of…

Aditya Renjen

Can you just identify yourself.

Thilan Wickram – HSBC

I’m sorry. This is Thilan Wickram from HSBC. I know that you’re using an increasing amount of sale and lease-back of asset. And I’m just wondering what was your operating charge in this quarter and prior years, I mean, when thinking about how it’s changing? And secondly, is there any guidance for your operating charge for the full year?

Shekhar Anantharaman

When we announced these two particular transactions, the second one is yet to be completed so therefore there was no operating lease charge that has target for that. What we can say right now is operating lease charge is going to be, is lower in our long-term take for equivalent partners. And hence we expect to maintain the profitable return on these transactions, net of the lease charge and the difference in the cost of debt.

Sunny Verghese

The lease rentals that we’re paying, is lower than the neutral charge we’re paying on the debt for this event. So we would be having some net benefit on that score. Secondly, as Shekhar already outlined, we would have significantly lower capital intensity.

In the case of the Australian Almond Orchards increase, the least S$200 million of cash, and in the case of the U.S. assets we released about S$65 million of cash. That will allow us to significantly announce our returns in this downturn in Australia, its 650 basis points increase in different on equity. And a 25% improvement on our return on invested capital.

And most importantly we still have access to the same production economics for the profitability, with the lease option and without the lease option in the case of the Australian as said, the biggest hold in lease-back will be slightly better than if you owned all the assets, our savings depreciation it’s the mark we had charged for us now. So we’ll be slightly better placed than compared to only need those assets in managing those efforts.

And finally as a procedure in benefit, we’re also looking gain. And Shekhar has mentioned on the five assets that we have disposed, of two we have sold out and divested. And two we have done a fail in lease-back which is U.S. and Orchards in Australia and one is a JV that we have partially sold on us, taking the noodles business in our packaged food segment to signing them.

Totally, we will release about S$369 million of cash. We will book capital gains of S$97 million of which S$38 not even booked in the past quarter. And about S$58 million is still to be booked which will be booked when the transactions complete. So we believe that this is a win-win situation both for us and for the potential investors who now own these assets and they were leasing it to us in terms of return for them.

So the exactly quantum of what was the lease charge quarter, we’ll come back to you. There is only one asset that has been leased. And where we have incurred the lease spent to last quarter. The rest will be only incurred in the future once the transaction completes in Australia.

Thilan Wickram – HSBC

All are these operating lease arrangements, is that right?

Sunny Verghese

Yeah, they are all operating lease I mean.

Thilan Wickram – HSBC

Thank you.

Sunny Verghese

Because all the land price depreciation from hereon will go to the new owner. We only have rights in the U.S. case, we own the trees and the produce from the trees, in Australia’s case, we own the produce from the trees.

Tanuj Shori – Nomura

Hi, Tanuj from Nomura, three quick questions. Upon sale and lease-back of almonds is obviously one of the potential attributes you highlighted as well. Any other assets which you could be leading in market which could go through the same route? That is one.

Two, in Food Staples, like last year, obviously we saw the volume inflexion because of grains creating and everything. Just wanted to understand have you seen the proper inflexion already or this year potentially there are some new geographies or how that business could ramp up? The Packaged Foods is on the Food Staples volume, actually the grain trading volume.

Sunny Verghese

Okay.

Tanuj Shori – Nomura

And third, the commodity finances I received – I think you talked about restructuring market volatility and which has like more according in the half?

Sunny Verghese

From the first question, most of the sale and lease-back that we are considering, we’re considering in the upstream assets. So the two examples of what we have done is in almonds. And these are fairly unique in a sense landmark kind of structures which have been put into – there are partners on which invest in agricultural assets. But this kind of structure is I think quite path breaking to have done. And I’m sure this will open up a new asset class of potential investors interested in yield kind of product.

So there are other plantation assets that we have, we have dairy farming assets, we have farmed plantation assets, we have rubber plantation assets, so these are all amenable to now replicating this template and the structure that we have completed in almond. I can’t be specific about which of our properties we’re considering there. But obviously we’re working on a few more such transactions that we had mentioned in our announcement that this provides another useful template to consider similar structures in our upstream out of our business.

On the second question about Food Staples & Packaged Foods, there will be a decline in volumes and grains because we’re changing the models in some of the participating origin. So in terms of volumes because you saw in the last two years, there has been a rapid growth in the grains business, and significant change in volume growth in that segment came driven by the growth in grains volume.

So volume in the segment is likely to decline this year. But if you look at the four or five platforms in this segment, which is grains, which is rice, which is packaged foods business, sugar business, most of these businesses from a bottom line performance this year and apart from grains, and sugar and rice, the other segments, other categories and platforms in that segment to grow both volumes and earnings. So we will expect to have reasonably good year in this segment for the full year.

The third question you asked with was about the CFS business, as Shekhar mentioned, we have restructured the business into two divisions. One is the funds management business whereas you know we have a fund that is now our third party capital is also involved, which is Ektimo, which is a Relative Value Fund.

And as we had mentioned in the past, there are other funds that we have been capital trials on, fundamental funds. And if those capital trials work out the way we plan I to, then we will go to the market to raise capital for that fund.

The fund management business has now been segregated and that house-fund to different structure. And then the market-making and wall trading business and the risk management solutions business will be the other businesses within the CFS.

The trust business, the fund business is a regulated business, EMEA. Secondly, market making wall trading and RMS is not regulated by the EMEA but is obviously got to be compliant with exchange rules and made it exchanges where we do that activity, market leading activities.

We worked for each successive business as a result of in terms of total cost. So in the market making and wall-trading business and RMS business, we have reduced overhead costs by about 33% from last year by aggregating the teams in two locations compared to the four locations that they were present in last year. So there are various things that we have done so, reduced overheads by about 33%.

The reason why we are in the CFS business is because from a return point of view, from a quality of income, risk adjusted income are few of these very attractive businesses.

The MMBT RMS business, we have been running for 10 years, mostly internally has a captive. And in the recent past, in the form that it is there now. And in nine out of 10 years, it has been book-value positive, in eight out of the 10 years it has been PBT positive. It has a much higher for every dollar of risk capital VAR, it has the best return on a VAR to return basis.

Only this year it has been basically negative and last year, it was book-value positive, PBT negative. But each year it has been significantly PBT positive and it is also given as the best returns. Very little working capital involved, no fixed capital involved, there is only overhead capital. And it has got a very high return to this capital.

So we will have to just accept our down-year ‘01 and ‘10, and we are confident that this business going forward sure will be a very attractive return profile and therefore we continue to remain invested with the restructure.

Unidentified Analyst

(Inaudible) from Barclays. You mentioned about some investment initiative over the next few years. So, question is that will you outline some of these initiatives and tell would this be funded?

Sunny Verghese

Yes. But unfortunately we cannot identify the investments, can’t be specific about that. But what Shekhar mentioned is that the next three-year plan is the total CapEx spend of S$1.5 billion compared to the roughly S$3.5 billion that we spent in the last three-year period. So we are reducing our CapEx rate by more than 50% compared to the last three-year period.

All of those investments that we’ve planned to make, well I can’t be specific about each of those investments, they’ll be on strategy, on plan. So we’re not going to be getting to new business or doing any investments that is off strategy or off plan. So it will be as Shekhar mentioned briefly in the grains scene the Food Staples segment that we are invested in a new wheat mill in Senegal, a new wheat mill in Cameron, in addition to the existing wheat mill in Nigeria which we have more than triple capacity. And the wheat mill in Ghana.

So it will be exactly those kinds of investments, which would strengthen our core business, which is on strategy and on plan. So, in the first quarter of this year, we have spent roughly S$150 million odd in CapEx in similar such investments, and that is roughly S$52 million lower than what we experienced in the first quarter of last year. So last time we spent more than S$1 billion in CapEx, this year we spent half of that.

Unidentified Analyst

You fund it internally by internal funds or?

Sunny Verghese

Yes, yes, yes. There will be no equity raising to fund this. So it will come from our internal approvals.

Unidentified Analyst

It’s (inaudible), your revenue dropped by 9% odd but then – the revenue…

Sunny Verghese

Sorry, yes, about 8%, 7.9% yes.

Unidentified Analyst

7.9% revenue of costs of goods sold actually fell by more than 9%, why is that so?

Sunny Verghese

Cost of goods sold has decreased by more than 9%.

Unidentified Analyst

Yeah, sure it’s more than 9%, is it because advocating two things together of our location is one of them? Second question, what’s the progress on your Gabon Urea fertilization plant?

Sunny Verghese

Sure.

Unidentified Analyst

And the third question, how much have you spent year-to-date?

Sunny Verghese

So, I think on the first question about revenue and cost of goods sold. We are not as we mentioned to you in the past, really very focused on revenue. We were focused on volumes because the drivers to our profitability are volume growth, margin on growth, absolute dollar percent margin growth rather than percentage margin growth because we’re not in control of commodity prices.

The cocoa prices are trading today at S$2,000 and we make say S$100 a ton, we meet the present margin. Tomorrow cocoa could be trading at S$2,000 a ton, we will still make S$100 a ton but that becomes a margin now of 5%. So, we’re not really concerned what the top-line numbers are. What we are looking at is how do you find ways to grow our volume that we supply to our customer. And for every ton that we supply, how do we improve our margins per ton.

That growth in margin per ton comes from the supply-chain margin which is the origination margin, the distribution margin and the trading margin, but it also comes from announcing that margin like we are seeing in the plantations of farming, which gives you a pick-up in that margin or going which team into manufacturing approaches and I think these are one of the pick-up in the margins.

So really what you have to be focused on is that EBITDA per ton in the past three – let’s say NC per ton – because NC was not good enough, the upstream segment and the midstream segment with a very good measure for the supply chain business.

But because you’re investing more in upstream and midstream, we said EBITDA per ton will capture asset metrics, all of the various business models that will have that.

So if you look at the revenue and the cost of sales, you will see that the EBITDA per ton and the EBITDA margins that are actually improved. So it doesn’t really follow strictly that denotes as a 7.9% drop in revenues. There has to be exactly the same drop in cost of goods sold. The linear function of what are the initiatives you have taken to improve your margins and therefore it could be higher or if your margins compress, it could be lower.

On the second question that you asked about urea. We have already given you an update the last time. We have made it public that our intention in that business is to deconsolidate that business by selling down our stake from the current 80% that we own, the government own the balance 20%, so below 50%, by bringing in strategic investors who will then exercise joint control and joint management of the business alongside that, which means they will only then consolidate and do accurate counting of our investment in that project and not consolidate the whole balance sheet.

So, we have got two consortium of potential investors, who are in various stages of due diligence. These things do not take time. So we’re making good progress, we’re pleased to the progress that we are making but there is nothing that is crystallized in the form of making an announcement of who the new partners are. And this would be a succeeded in filling down this stake. But we’re making good progress and are definitely moving towards that objective of selling down the stake and big consolidating businesses.

It is an attractive business therefore we want to remain invested. So it’s not that we’re wanting to sell 100% of the business, we want to remain invested because we’ve seen from an economic point of view, from a return point of view, it’s a very, very attractive project.

But from a capital intensity point of view, it’s very significant capital investment, which we want to now reduce our commitment to. And therefore we will look to consummate this deconsolidation exercise that we currently embarked on. On the amount of investment that we’ve already made with our S$141 million already committed to the project which we have made.

Shekhar Anantharaman

But a lot of that is in developing the site, and we had announced in the – when we talked about in the full year results that’s we’re approaching and that land site is prepared, so lot of that in land site preparation and that can be recovered so that the site can be utilized by not just for this project but for other projects that’s a very attractive site so therefore we spend this money with a confidence that that site will have value.

Sunny Verghese

So dredging, land selling and getting the site ready for construction is what we have done so far. But proceeding that is all the year’s high work that we did which is an IMS portion in fact assessment what we did, all the technological works that we’ve done, we gathered due diligence of the technical due diligence and developing the project for getting NDTC on track, all of that stuff is what we have been engaged in. So we have taken the project to a stage where we can now start construction.

Unidentified Analyst

Instead of points we’re giving lease limit to commitment in the Gabon project because say another S$35 million in this last three months. Is there a point you would say we’ll stop here and wait for milestones or this is?

Sunny Verghese

I think we will expand it to S$150 million, we’ve already set where Shekhar said, S$141 million. And then we will wait to see whether these milestones are achieved. That will delay the project but that is fine.

Unidentified Analyst

Already as Shekhar mentioned, EBITDA per ton coming to me, do you say that you’re targeting EBITDA to flat, but tomorrow if prices go up, you’re working capital will go up and so the interests related to that EBITDA then goes up. So, what exactly is….?

Sunny Verghese

EBITDA percentage will change because prices go up and down. EBITDA per ton is fairly sticky because we’re not trading this on a proprietary position or directional basis. So, what we’re trying to capture to the origination margin, what we’re trying to capture of the distribution margin and what we’re trying to capture is relative value trading margins. These margins are fairly sticky or a broad range of prices, so the cocoa is trading at S$1,500 and cocoa is trading at S$2,500. This dollar per ton margin is fairly sticky. But because the prices change, the margin will change.

Unidentified Analyst

That’s the point I’m trying to drive at, I mean, if your EBITDA per ton is constant, tomorrow if prices increase the revenues are going to – the working capitals are going to get interest itself double.

Sunny Verghese

Yes, that is the fact of our business. So, EBITDA, that would include interest. So that’s why we say, EBITDA per ton will remain constant, not constant precise this point number but it’s fairly sticky and it will be in a small range. What will change is the percentage margin as you rightly pointed out. And PBT margins would change.

Unidentified Analyst

It seems to imply the advising (inaudible). I mean, this is different from watching price reduce in these – you would pass on the interest cost?

Sunny Verghese

If you recon the dollar applications we’ve already said that we prefer a lower market for the prior season that we’re exceeding that the working capital investment is more. Then, all I’m saying is, we don’t want a very low market with the symptoms divided to the farmer to produce more. If the farmer gets the price that lower in terms of production, then he will not produce or he will go to some other crop that is bad for us because when we have invested volumes to our particular sites.

So, we want prices which are remunerated in our setting, and create the farmer to fund more, but overall based on our business model, the lower price we prefer because we have lower investment. Because we make an average dollar per ton with always what we have.

Shekhar Anantharaman

If I can just add one more point to that that is higher prices mean higher working capital. The interest on working capital and higher carrying charges mostly is a pass through. What we can’t recover is really interest on – the fixed capital. So as far as the question that you had about the prices, if it is on account of prices and higher working capital and the whole market is going to be passing on the sort of cash to cash cycle holding time and then the interest cost to the in the pricing then we will also be able to recover that part.

And in most cases, that’s why our margins where prices go up or go down don’t change that much on the working capital side. The fixed capital investments you can’t recover if you’re not doing the volume or it’s not so, the interesting part, but absolute working capital will go and then prices are higher the investment growth on prices higher.

Adrian Foulger – Standard Chartered

Adrian from Standard Chartered. So, I’m concerned about your wearing with lead times, why don’t you remember the history for the calendar year fourth quarter, your second quarter was typically around that period in terms of working capital. You already have 1.93 times, should we be expecting to breach two times over the short, at the end of the year or is that two times not going to be reached at all?

Sunny Verghese

We think the kind of prices go up, and you’re in big procurements and then shipments get delayed or things like that. It can go up but you believe that’s on a more structural basis we should be able to regain below two times.

If you look at the same time last year, it was above two times or about 2.01 or 2.02 end of Q1 of last year. So it has moved between 1.8 to 2.25 and we believe that on a structural basis what we are doing, we’ll keep it below 2. But there might be blips at a point of time which might take about 2. But certainly I think we should be able to see that.

Shekhar Anantharaman

So there is maximum run-up in prices and I think we might reach that. But that will be hopefully soon.

Adrian Foulger – Standard Chartered

Thank you.

Unidentified Analyst

From cash flow and balance sheet. It’s (inaudible) sorry. Revenue results…

Sunny Verghese

You can come back. We’ll take other questions if you would come back.

Chuck Spencer – Morgan Stanley

Hi, it’s Chuck Spencer from Morgan Stanley. Where there any gains in this quarter from the sale lease-back activities that came through – not okay, the transaction is not yet complete, when it completes you’ll come through and then you’ll highlight it? Then secondly, when you talk about free cash flow to firm, will it be including the S$45 million gain or the S$200 million value release when you calculate that net CapEx number?

Sunny Verghese

I guess, the changes to CapEx, we’ll have book investments and divestments and that will be included there. And therefore, part of the free cash flow to follow.

Chuck Spencer – Morgan Stanley

And which is the conventional way in which it is? Yes, I guess, I’m just wondering you told about a gain that’s S$45 million and you talk about a value release of S$200 million which one goes into that net cash flow?

Sunny Verghese

S$200 million will go into the net cash.

Chuck Spencer – Morgan Stanley

Right. And then, looking at the industrial material segment last year, the FDU project was a major contributor to that. Have you identified how much of that in segment earnings came from that?

Sunny Verghese

Actually in the last year, the first quarter would contribute us on a quarter on bases it’s pretty like competitive.

Chuck Spencer – Morgan Stanley

But for the full year, was a major pull?

Sunny Verghese

For the full year, you’re talking about?

Chuck Spencer – Morgan Stanley

You were talking about for the fourth quarter was same?

Sunny Verghese

That’s right.

Chuck Spencer – Morgan Stanley

So, with that project mostly done, could we assume that the industrial raw material sort of now at least doesn’t look like it was last year?

Sunny Verghese

There is going to be some reduction in Q4. But I see that it’s still expected to contribute this year because there is still some unsold part as well as some of the annuity income that will kick-in because now the tenants are going to pay for that. So there will be some income, it will be lower than last year, like a little bit lower. So to that extent it will have some marginal impact on the seasonality.

Chuck Spencer – Morgan Stanley

Was the last year also a very poor year for the other two products?

Sunny Verghese

I think that’s a true source of income, one is selling a plot, developed land and the second is the fee income from the utility service. So the utility service fee income will continue and there will be some income that we get from the balance unsold property, which will flow to the – maybe lower than last year but there will be some contributions I think.

Chuck Spencer – Morgan Stanley

Okay. But just your guidance on that division is that we shouldn’t expect a major shift downward in earnings because of the loss of that contribution last year?

Sunny Verghese

We would hope not. And we believe that the normal business, other businesses will be getting back to a normal territory.

Chuck Spencer – Morgan Stanley

Got it. And then finally, with depreciation jump 40% year-over-year, it seems a bit more of a greater increase than your S$1.1 billion of fixed capital investment that needs to adjust. And any further insight there?

Sunny Verghese

I mean, depreciation there is two, there is part with a fixed depreciation which will be charged off every quarter-on-quarter. But in some cases, the manufacturing side, there is manufacturing depreciation that gets sold off based on actual sales and this was used. So in both jurisdictions you’ll have some differences in the quarterly depreciation. But in overall terms for the year, it would have been up.

Chuck Spencer – Morgan Stanley

Okay, thank you.

Sunny Verghese

Okay.

Patrick Yau – Citi

Thank you, Patrick Yau from Citi. Just a question on actually follow-on question on prices, you had depreciation of growing about 14% but actually 14%, no, census of always good now of 3%. Actually that expenditures was actually in the 20s, so, would you say, in terms what change are they affecting positive expenses to a much lower level of food?

Sunny Verghese

So, certainly this is the information we have reached up to it in terms of cost. So one is the wool business, second, is the dairy business, third is the sugar business and fourth is the CFS business. So, various sustained cost management initiatives and the restructuring we have been able to achieve some operating efficiencies and – so that is one.

Secondly, we have our reduced our faced acquisition so you see in every quarter the reason orders are growing 20% is that you are accommodating newly acquired companies in those quarters. Since that phase of acquisitions, have slowed down quite considerably, we’re not seeing that same kind of products. So I think we will now see more ordered growth in this kind of trend line unlike what historically it has been.

Patrick Yau – Citi

Thank you for that. And just to follow on that CapEx guidance, I think Shekhar mentioned the CapEx is around 500 for the year. Is it net CapEx or gross CapEx?

Shekhar Anantharaman

Gross.

Patrick Yau – Citi

Gross CapEx. So, for example in S$200 million cash in-flows of the almond so that would be…?

Sunny Verghese

That’s S$513 million gross over the segment.

Patrick Yau – Citi

Of new CapEx?

Sunny Verghese

Yes, new CapEx.

Shekhar Anantharaman

And I think the other investment would go off that, investment and depreciation for the year.

Conrad Werner – Macquarie

Hi, it’s Conrad from Macquarie. First question just on volumes, when you mentioned that volumes are sort of the key driver of your business, so they were kind of flattish year-over-year in this quarter, you explained some of the reasons why should we seeing some acceleration through the rest of the year, what would be kind of the guidance for the full year in terms of volume growth, since specifically on cost – last quarter we talked about this, that was kind of playing some of your uptake.

So you mentioned about in the MD&A this time around that kind of results and have this issue of weak pricing contemplating which place in Olam? What can we expect from cotton business for this year? Thanks.

Sunny Verghese

In terms of volumes, three out of our four segments excluding the CFS segment which is not volume relevant. The other three out of the four segments, there was volume growth, there was EBITDA growth, and there was EBITDA per ton growth.

In the Food Staples & Packaged Foods business there is a low growth in volumes because the first quarter of last year had a 97% growth in volume in the segment because in the ramp up – we’ve changed the model – we’ve changed model in Canada, etcetera. As a result of which we expect a lower volume growth in the grains business.

So, overall the volume growth for the full year will probably be in the single digits, rather than in the double digits that we had. And most of the change in the volume of growth for just the largely come from the change that we’re going to see in Food Staples and Packaged Foods business. But in the first quarter, three out of the four segments have grown in volumes.

Conrad Werner – Macquarie

And then on the Food Staples, you mentioned something in the preamble about – are you changing the way you’re working in the brands, you’re being more selective about the business you’re doing there because I think I heard that correctly?

Sunny Verghese

Yes.

Conrad Werner – Macquarie

Okay.

Sunny Verghese

So because failure for example (inaudible). And then we were exporting that. But because we didn’t have elevation active, the slot that we take for elevating to export will come only when the operators give us the slot.

Conrad Werner – Macquarie

What sort of operators are accompanying this?

Sunny Verghese

So while they want third party business to keep full capacity and transition of elevated they will fully control the time when we get this done. So we have invested in our own elevation to this new capital terminal. This will start being operational from the second half of coming year.

But as a result of that we have decided to focus more of our grain on definition in Australia for domestic trading rather than for export. There has still been some exports but the volume of exports that they have did in the past, we’re going to reduce that. Then we have some kind of matching capacity between our elevation capacity and outsourcing of origination capacity. So that is one change as an example of why we believe the grain volumes have come down in the current year.

On your second question about coffee and the viral disease in the Central American growing areas and Andean region, that disease is still an issue. So there will be reduction in costs in most of these countries including Guatemala, Honduras, Peru, etcetera which are affected by it. But it is being compensated for by few increase in Columbia, with a significant increase in the wheat.

So, Columbia has got about 1 million tons over the last year, which is a massive increase. So, Columbia will be at about 10 million to 11 million bags – 10 million bags of production which had gone down, we need lot five years ago. The production had collapsed from 12 million bags to about 6 million bags. It is now revised from 6 million to 10 million.

So while rest of Central America is affected by that, there is an increase in supply from Columbia, and also issues increased in the wheat. We knew that the off-year, on-year crops and the coming year is going to be another on year. Therefore there is going to be significant production growth – so I would say coffee is the broad expected to be about, 85.5 million bags of production, (inaudible) is expected to be about 64 million. So we see quite a burden from balance sheet, both for (inaudible) which is what is reflected in today’s prices.

So this will be the second year where production will exceed consumption, there is good growth in consumption, good growth in demand. But there is some for crops in some of the key producing countries.

Conrad Werner – Macquarie

For the large ROI in fact it’s being sort of compensated for by the growth in some of these other countries where they don’t have that problem?

Shekhar Anantharaman

It’s not the margins, it’s only the volumes. So there so EBITDA has grown there by 25.5%, EBITDA margins in that segment has grown by about 15%. EBITDA per ton has grown and EBITDA overall has grown significantly in that segment. And it is a result of because of the low prices it is a reduction of lower working capital and lower cash flow generation.

Sunny Verghese

Because I’m just going off this conference, but weaker coffee prices could entail margin pressure?

Conrad Werner – Macquarie

No, actually the coffee prices go to rail, so the S$97 million margins are sticky as in a cloud range of prices that is true. But if it goes below S$1 how do we call prices?

Sunny Verghese

Then I think it’s (inaudible). In the first quarter where prices averaging around $1.06 to $1.10, EBITDA margins per ton grew and EBITDA overall grew very, very strongly in the quarter.

Shekhar Anantharaman

Yeah.

Unidentified Analyst

I have a question on the Almond Orchards I understand that almond contribution is very profit intensive I mean, I was wondering over the longer term what kind of measures that you have put in place to secure more water for this region so far?

Sunny Verghese

So, we have not sold our permanent water rights. So about S$180 million worth of water right, we still own and still in our books. And we won’t sell it as long as we’re farming. So the whole idea is that we want to make sure that the plantations are high yielding and generate good profits for us because we manage the cost.

But a critical part of managing the plantation well is you need to have visibility and security of water. So which is why we paid a lot of money for securing this service in water rights, and which is why we have not sold this from an end water rights. But you are right, our farming and our plantation is very management intensive. The difference between a good farmer and a bad far has a difference of three days.

So if you’re late then planting are late and weeding are late and fertilizing are late and late in yielding. And you’re not precise in how we manage all of that it can result in a big variance in outcomes in the product. Well, that’s our expertise and we do that across multiple crops in multiple geographies and which is the value that we generate in the upstream.

So we’re good at that and because our upstream portfolio is diversified across multiple geographies, the weather related agricultural risks which we cannot manage. It’s to some extent self-compensated so the fact if you’re not putting all that in Palm in Indonesia.

But we are in Almond Orchard, we have in ARM, we are in rubber, we are in cocoa plantations, we’re in coffee plantations, we’re in rice farming, we’re in peanut farming, we’re in grains farming, we’re in dairy farming across 21 countries in the northern hemisphere and in the southern hemisphere.

So that’s the only way we can manage the agricultural risk. All the other risks are within our control. We can manage it by better management. So, we have 90 million mega-liters of permanent water right security high water backlog.

Sunny Verghese

We didn’t get you, can you repeat your question. We can’t put him on the back like that?

Unidentified Analyst

(Inaudible).

Sunny Verghese

All right. Thank you ladies and gentlemen, I see no further questions. That concludes this meeting. Thank you very much.

Shekhar Anantharaman

Thank you.

Aditya Renjen

Thank you.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Olam International's CEO Discusses F1Q14 Results - Earnings Call Transcript
This Transcript
All Transcripts