Indonesian Export Levy Update

M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, notes the recent announcement by the Indonesian government regarding changes to its export levy for crude palm oil ("CPO"), which are effective immediately. Previously, the levy was charged at graduated amounts, increasing in US$50 per tonne bands. This approach is being replaced with a lower 7.5% export levy. As before, the levy is set monthly based on a reference price connected to the global CPO commodity price. There is no change to the separate export tax which continues to be charged in increasing amounts at each US$50 per tonne price band.

The combined effect of the export tax and levy prior to the change is shown in table 1 in the Annex, with table 2 showing the position after the amendment, including the levy as a result of the new approach. At all prices shown in the table, the amendment leads to a reduction in the export levy charged by the Indonesian government.

As reported in the Company's 2024 interim report, published on 16 September 2024, the Group continues to receive higher mill-gate prices than the US$771 per tonne average in the first half of the year, with current pricing well in excess of US$800 per tonne.

Whilst not expecting a material impact from the changes to the export levy, management will continue to monitor the pricing environment in the coming months as the new arrangements are introduced.