AEP Plantations (AEP) Trading update summary

Operational and financial performance

• Own FFB production declined by 2.7% to 421,900 mt due to lower yields and replanting activities, partially offset by new output from Pinago Group.

• External FFB purchases rose 6.5% to 524,000 mt, with Pinago Group contributing 4.2% of the growth.

• CPO production decreased by 1.8% to 173,200 mt, mainly from lower estate output and higher third-party sales.

• Average CPO ex-mill price was $859/mt, down 2.2%, while PK price increased 8.1% to $802/mt.

• Replanting covered 641 hectares, with a total of 4,800 hectares replanted since 2024.

Strategic initiatives and projects

• Pinago Group's May 2026 output included 13,800 mt own FFB and 20,600 mt external FFB.

• Construction of the 9th mill at KAP Estate is on track for December 2026 commissioning, with major works over 65% complete.

• IPO of Kalimantan subsidiary targeted for Q4 2026, pending market conditions and regulatory approvals.

Regulatory and market environment

• Indonesian government plans to centralise commodity exports under DSI, with full implementation by January 2027.

• Export policy expected to have minimal impact as all CPO is sold domestically.

• Palm oil prices remain supported by domestic demand and potential supply disruptions.