Half-year Results

AEP Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, is pleased to announce its unaudited results for the six months ended 30 June 2026.

Highlights

• On 4 May 2026, the Group completed the $158.3 million acquisition of Pinago in South Sumatera, Indonesia, adding 14,300 hectares of mature plantation.
• Group revenue increased by 8.3% to $249.7 million and profit before tax by 5.1% to $65.8 million, including a $9.1 million non-recurring gain arising from the Pinago acquisition
• The average ex-mill CPO price was $853/mt (-1.2%) and palm kernel price was $793/mt (+7.4%).
• The Group maintained cash and cash equivalents of $109.5 million and bank borrowings of $13.2 million, following the Pinago acquisition.
• Board intention to declare an interim dividend by the end of the third quarter of this year.
• $25.9 million returned to shareholders through dividends and share buybacks during the period.

AEP Chairman, Jonathan Law, commented:

"I am pleased to report a strong set of results for AEP, with revenue up 8.3% and profit before tax up 5.1%, reflecting our Pinago acquisition completed in May.

We expect the production trend to improve in the second half of the year, and with CPO prices likely to remain elevated in the coming months, the Board is optimistic that the Group will deliver a robust performance in the second half of the year."

The first half of 2026 marked an important milestone for the Group. On 4 May, we completed the acquisition of the PT AEP Pinago Plantations Tbk (formerly known as PT Pinago Utama Tbk) and its subsidiaries ("Pinago"), adding 14,300 hectares of mature plantation and increasing our total planted area to 87,392 hectares, more than a quarter higher than at the year end. In 2025, Pinago reported revenue of $135 million, profit before tax of $24.5 million, and profit after tax of $18 million.

The consideration for the acquisition of $158 million was funded entirely from existing cash resources. At the same time, we continued to return capital to shareholders, with $25.9 million paid through dividends and share buybacks during the period.

We continued the largest replanting programme in the Company's history. We advanced construction of our ninth mill at KAP Estate, and shortly after the period end we completed the acquisition of PT Jaya Jadi Utama, whose land sits immediately adjacent to that mill.

Delivering this combination of growth, financial strength and shareholder returns reflects the balance sheet discipline we have maintained over many years. It also demonstrates our approach to capital allocation: investing in high-quality assets that strengthen the business, while maintaining a prudent financial position and returning capital to shareholders where appropriate.

Financial Highlights

*Note:

• Profit before tax for the six months ended 30 June 2026 includes a gain on bargain purchase of $9.1 million arising from the acquisition of PT AEP Pinago Plantations Tbk and its subsidiaries.
• EPS has been retrospectively adjusted for the 10-for-1 share split completed on 25 June 2026.

Our own FFB production rose 2.7% to 544,700 mt (2025: 530,400 mt) mainly driven by stronger production in Kalimantan and the inclusion of two months of FFB production of 29,000 mt from Pinago. This was partially offset by a delayed cropping cycle, and the ongoing replanting programme in North Sumatra and Riau during the first half of the year. Production has returned to an upward trend since June.

External FFB purchases increased by 12.9% year-on-year to 669,800 mt primarily contributed by Pinago's purchases in May and June of 45,200 mt. Excluding Pinago, external FFB purchases increased by 5.2% compared with the corresponding period last year.

CPO production rose 4.3% to 223,600 mt (2025: 214,300 mt) and palm kernel production rose 5.3% to 55,500 tonnes. The oil extraction rate improved to 19.9% from 19.7%, which on the volumes we processed, converts directly into additional oil at no additional cost of planting or harvesting.

Excluding Pinago, FFB yield was 9.1 mt/ha, comparable to the corresponding period last year. Pinago recorded an FFB yield of 2.5 mt/ha for the two-month period since its acquisition in May 2026.

The mature plantation area, including plasma, increased to 74,200 ha, from 61,500 ha as at 30 June 2025, mainly reflecting the addition of 14,300 ha of mature plantations from Pinago.

Pinago

During the period, we completed the acquisition of Pinago, adding 15,118 hectares of planted oil palm, 3,590 hectares of planted rubber and integrated milling capacity, and taking our total planted area to 87,392 hectares. In 2025, Pinago reported revenue of $135 million, profit before tax of $24.5 million, and profit after tax of $18 million.

Following the completion of the acquisition, Pinago's results for May and June 2026 have been consolidated into the Group's results, as follows:

Pinago provides AEP with a sizeable and established plantation platform in South Sumatra, supported by integrated palm oil and rubber-processing facilities. The oil palms have an average age of approximately 10 years, with around 74% mature and 26% immature, while the rubber trees average approximately 12 years, with 77% mature and 23% immature. This age profile provides an established production base together with meaningful future growth potential as immature plantings mature and enter production.

There is also material potential to improve oil-palm yields through enhanced fertiliser application, greater harvesting mechanisation, improved estate management and infrastructure maintenance. Further production growth is expected to come from the maturation of existing plantings, new planting opportunities and the selective replanting of older trees.

From the acquisition date to the end of the reporting period, Pinago contributed revenue of $18.3 million and profit before tax of $3.5 million.

On 21 August 2026, the Group completed the mandatory tender offer ("MTO") for shares in PT AEP Pinago Plantations Tbk ("Pinago"). Under the MTO, the Group acquired an additional 9,484,700 shares, representing approximately 1.21% of Pinago's issued share capital, at Rp3,584 per share, for a total purchase consideration of approximately US$1.9 million. Following completion of the MTO, the Group's ownership interest in Pinago increased from 98.26% to approximately 99.48%. Including the initial acquisition consideration of approximately $158.3 million, the Group's total consideration for its approximately 99.48% interest in Pinago amounted to approximately $160.2 million.

PT Jaya Jadi Utama

Subsequent to the reporting date, the Group completed the acquisition of Admiral Potential Sdn Bhd, which owns 100% of PT Jaya Jadi Utama ("PT JJU"). PT JJU holds 7,169 hectares of HGU in Central Kalimantan, adjacent to the Group's KAP estate. The acquisition is expected to support FFB supply to the KAP mill and provide additional capacity for future growth.

Development

The Group's planted areas on 30 June 2026 comprised:

New Planting and Replanting

At the end of last year around 22% of our palms were classified as old and the average palm age across the estate was 14 years, against a target of 12. Our response is a 10,000 hectare replanting programme running to 2030, replacing older palm trees with higher yielding, more disease resistant varieties. We replanted a record 2,440 hectares last year. In the first half of 2026, we completed 1,227 hectares of planting, comprising 844 hectares of replanting and 383 hectares of new planting, together with 27 hectares of plasma planting. We remain on track to complete the 2,750 hectares by the end of 2026.

Construction of the Group's ninth mill at KAP Estate in Kalimantan is progressing as planned, with commissioning scheduled for December 2026. As at end of June 2026, building and structural works were 85% complete, civil works 60% complete, and mechanical machinery fully fabricated, with delivery expected by end of August 2026. The mill will support approximately 6,400 hectares of maturing Kalimantan palms and increase the Group's milling capacity by 45mt/hr.

Update on Listing of Kalimantan Subsidiary

The proposed Initial Public Offering of PT AEP Nusantara Plantations Tbk on the Indonesian Stock Exchange ("IPO") is currently being considered for listing in 2027, subject to prevailing market conditions and obtaining relevant regulatory approvals.

Indonesian Government Commodity Export Proposals

During the period, the Indonesian Government announced its intention to strengthen the oversight of strategic commodity exports through PT Danantara Sumberdaya Indonesia ("DSI"), initially covering palm oil, coal and ferroalloys. Subsequent announcements have provided greater clarity on the proposed arrangements. DSI commenced operations on 1 June 2026 and, from 1 September 2026, introduced an export governance platform designed to improve transparency and consolidate export and commercial data with information from relevant government agencies. Importantly, exporters will continue to manage their existing commercial relationships and deal directly with overseas customers, with DSI acting as an intermediary to facilitate and monitor export transactions rather than as a trader. The current arrangements are expected to remain in place until the end of 2026 with full implementation targeted by end of the year. The Group continues to monitor developments as the framework evolves.

Financial Review

For the six months ended 30 June 2026, revenue increased by 8.3% to $249.7 million (2025: $230.5 million)

Administrative expenses increased to $10.5 million from $4.7 million, mainly due to higher corporate expenses, including acquisition-related costs for Pinago and PT Jaya Jadi Utama, and the inclusion of two months of expenses from Pinago.

Profit before tax increased by 5.1% to $65.8 million (2025: $62.6 million) including $1.1 million contribution by Pinago and a $9.1 million non-recurring gain arising from the acquisition.

Excluding the non-recurring gain, underlying profit before tax was 9% lower than the corresponding period last year, driven by the delayed cropping cycle in North Sumatra and replanting in Riau, partly offset by higher production in Kalimantan.

Profit for the period attributable to owners of the parent increased slightly to $48.9 million (2025: $48.8 million).

Basic earnings per share for the six months ended 30 June 2026 stood at 12.71 cts (2025: 12.33 cts), an increase of 3.1%.

The Group's bank borrowings stood at $13.2 million as at 30 June 2026 (30 June 2025: nil), arising from the consolidation of Pinago Group's borrowings following the acquisition.

As at 30 June 2026, the Group held cash and cash equivalents, including short-term bank deposits, of $109.5 million (2025: $244.7 million). The decrease mainly reflected $158.3 million deployed for the Pinago acquisition, together with $14.6 million in capital expenditure and $9.1 million in share buybacks, with $41.7 million in cash generated from operations.

Net assets stood at $579.4 million (2025: $584.8 million), supported by profit for the period of $48.9 million. During the period, the Group returned $25.9 million to shareholders through dividends of $16.8 million and share buybacks of $9.1 million, while foreign currency translation losses of $32.1 million arising from the weakening of the Indonesian Rupiah against the US Dollar impacted net assets.

Dividend and Share Buyback

The final dividend of 4.37 cents per share (adjusted for the 10-for-1 share split) in respect of the year ended 31 December 2025 was paid on 30 July 2026.

The Board will declare an interim dividend by the end of the third quarter of this year.

During the period, the Group repurchased 4,214,840 ordinary shares (adjusted for the 10-for-1 share split) for $9.1 million under its 2026 share buyback programme.

Outlook

CPO prices are expected to remain firm for the remainder of 2026, supported by sustained demand from the food and energy sectors. In Indonesia, domestic CPO consumption continues to be underpinned by the biodiesel programme, which is expected to provide continued support to CPO demand and prices.

While increased production and inventory levels may temper further price gains, resilient demand from key importing markets, alongside geopolitical uncertainties and weather-related risks including potential supply disruptions associated with El Niño, is expected to provide support for CPO prices. The Group will also benefit from a full six months' trading from Pinago.

We continue to assess a pipeline of brownfield opportunities in Indonesia against strict financial, operational and sustainability criteria. The Group remains confident in the long-term demand fundamentals for CPO and we remain confident of achieving market expectations for the full year.

Condensed Consolidated Income Statement

Earnings per share for profit attributable to the owners of the parent during the period

Issued capital and reserves attributable to owners of the parent

Notes to the interim statements

Basis of preparation of interim financial statements

These interim consolidated financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting" as issued by the International Accounting Standards Board ('IASB') and as adopted by the United Kingdom. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2025 Annual Report. The financial information for the half years ended 30 June 2026 and 30 June 2025 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and has been neither audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.

Basis of preparation

The annual financial statements of AEP Plantations Plc are prepared in accordance with UK adopted International Accounting Standards. The comparative financial information for the year ended 31 December 2025 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2025 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2025 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under Sections 498(2) or 498(3) of the Companies Act 2006.

The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has control of the monthly cashflows and that the Group has sufficient cash resources to cover the fixed cashflows for a period of at least 12 months from the date of approval of this interim report. For these reasons, the Directors adopted a going concern basis in the preparation of the interim report. The Directors have made this assessment after consideration of the Group's budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties. Stress testing of other identified uncertainties was undertaken on primarily commodity prices and currency exchange rates.

Changes in accounting standards

The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the Group's latest annual audited financial statements.

Foreign exchange

Revenue

Disaggregation of Revenue

• Depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and
• Enable users to understand the relationship with revenue segment information provided in note 5.

In the 6 months to 30 June 2026, revenue from 4 customers of the Indonesian segment represent approximately $89.9 million (H1 2025: $102.0 million) of the Group's total revenue. In the year 2025, revenue from 4 customers of the Indonesian segment represent approximately $193.1 million of the Group's total revenue. An analysis of this revenue is provided below. Although Customers 1 to 2 each contribute over 10% of the Group's total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis.

Corporation tax rate in Indonesia is at 22% (H1 2025: 22%, 2025: 22%) whereas Malaysia is at 24% (H1 2025: 24%, 2025: 24%). The standard rate of corporation tax in the UK for the current year is 25% (H1 2025: 25%, 2025: 25%).

Dividend

The interim dividend in respect of 2025, amounting to 3.73 cents per share (adjusted for the 10-for-1 share split), or $14,557,914 was paid on 7 November 2025 (2024: no interim dividend).

The final dividend in respect of 2025, amounting to 4.37 cents per share (adjusted for the 10-for-1 share split), or $16,763,035 was paid on 30 July 2026 (2024: 5.10 cents per share, or $20,091,155 paid on 18 July 2025).

Earnings per ordinary share ("EPS")

Weighted average number of shares in issue in the period

EPS has been retrospectively adjusted for the 10-for-1 share split completed on 25 June 2026.

Investments

Investments analysed as:

The movement of the fair value through profit and loss investment is:

Fair value through profit and loss financial assets includes the following:

Fair value through profit and loss financial assets are denominated in the following currencies:

The quoted bonds have an average remaining maturity of less than one year, reflecting the

Group's short-term trading strategy. The fair value of quoted investments, including listed equity securities, bonds and treasury bills, is classified as Level 1 in the fair value hierarchy, as they are traded in active markets and valued based on quoted market prices at the reporting date.

The fair value of unquoted investment portfolio, which comprises capital-protected investments, is classified as Level 2 in the fair value hierarchy and is determined based on valuations provided by the custodian bank, using observable market inputs including quoted prices of similar instruments and market interest rates.

Acquisition of subsidiaries

On 4 May 2026, the Group acquired 98.26% of the issued share capital of PT Pinago Utama Tbk ("Pinago"), now known as PT AEP Pinago Plantations Tbk, an integrated palm oil and rubber plantation group in South Sumatera, Indonesia, together with its subsidiaries, for cash consideration of approximately $158.3 million. The consideration also includes the acquisition of the remaining 1% interest in PT Hamparan Mutiara Hijau ("HMH"), a subsidiary of Pinago, on the acquisition date.

The acquisition expanded the Group's plantation operations by adding approximately 15,118 hectares of planted oil palm and 3,590 hectares of planted rubber, together with integrated milling and processing capacity.

The provisional fair values of the identifiable assets acquired, and liabilities assumed at the acquisition date were as follows:

2026

(unaudited)

$000

The non-controlling interests were measured at their proportionate share of the fair value of the identifiable net assets of the relevant entities.

The acquisition resulted in a provisional gain on bargain purchase as follows:

2026

(unaudited)

$000

Before recognising the bargain purchase gain, the Group reassessed the identification and measurement of the assets acquired, and liabilities assumed in accordance with IFRS 3. The gain represents the difference between the estimated fair value of Pinago acquisition and the purchase price.

The purchase price allocation remains provisional as at the reporting date and may be adjusted during the measurement period in accordance with IFRS 3.

From the acquisition date to the end of the reporting period, Pinago contributed revenue of $18.3 million and profit before tax of $3.5 million, before additional depreciation of $2.4 million arising from the fair value adjustments recognised on acquisition. After taking into account such additional depreciation, Pinago's contribution to the Group's profit before tax was $1.1 million.

Management is also in the process of assessing the highest and best use of certain assets acquired as part of the acquisition, which may affect their final fair values.

Subsequent event

Completion of Mandatory Tender Offer for Pinago

On 21 August 2026, the Group completed the mandatory tender offer ("MTO") for shares in PT AEP Pinago Plantations Tbk ("Pinago"). Under the MTO, the Group acquired an additional 9,484,700 shares, representing approximately 1.21% of Pinago's issued share capital, at Rp3,584 per share, for a total purchase consideration of approximately US$1.9 million. Following completion of the MTO, the Group's ownership interest in Pinago increased from 98.26% to approximately 99.48%. Including the initial acquisition consideration of approximately $158.3 million, the Group's total consideration for its approximately 99.48% interest in Pinago amounted to approximately $160.2 million.

Completion of Acquisition of Admiral Potential Sdn Bhd

Subsequent to the reporting date, the Group completed the acquisition of Admiral Potential Sdn Bhd, which owns PT Jaya Jadi Utama ("PT JJU"). PT JJU holds 7,169 hectares of HGU in Central Kalimantan, adjacent to the Group's KAP estate. The acquisition is expected to support FFB supply to the KAP mill and provide additional capacity for future growth.

The Group is in the process of completing the acquisition accounting, including determining the fair values of the identifiable assets acquired and liabilities assumed. Accordingly, the financial effects of the acquisition have not yet been finalised.

Report and financial information

Copies of the interim report for the Group for the period ended 30 June 2026 are available on the AEP website at https://aepplantations.com/.