Interim report
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RNS Number : 9672SAEP Plantations PLC02 September 2026 2 September 2026 AEP Plantations Plc ("AEP", "Group" or "Company") Interim results for the six months ended 30 June 2026 AEP Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, is pleased toannounce 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 $13.2million, 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 thesecond half of the year." Enquiries: AEP Plantations Plc +44 (0) 20 7216 4621 Marcus Chan Jau Chwen, Executive Director (Corporate Affairs) Kevin Wong Tack Wee, Group Chief Executive Officer Montfort Communications Limited - Financial PR aep@montfort.london Ann-marie Wilkinson, Shireen Farhana Cavendish Capital Markets Limited - Financial Adviser and Broker +44 (0) 20 7220 0500 Matt Goode, George Lawson, Trisyia Jamaludin (Corporate Finance) Will Smith, Harriet Ward (Corporate Broking) Introduction The first half of 2026 marked an important milestone for the Group. On 4 May, we completed the acquisition of thePT AEP Pinago Plantations Tbk (formerly known as PT Pinago Utama Tbk) and its subsidiaries ("Pinago"), adding
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14,300 hectares of mature plantation and increasing our total planted area to 87,392 hectares, more than a quarterhigher 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 sametime, we continued to return capital to shareholders, with $25.9 million paid through dividends and share buybacksduring 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, whoseland sits immediately adjacent to that mill. Delivering this combination of growth, financial strength and shareholder returns reflects the balance sheetdiscipline 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 returningcapital to shareholders where appropriate. Financial Highlights 2026 6 months to 30June $ million 2025 6 months to 30June $ million Variance (%) 2025 Year Ended 31December $ million Revenue 249.7 230.5 8.3% 465.2 Gross profit 62.8 62.8 0% 123.8 Profit before tax* 65.8 62.6 5.1% 119.3 Profit after tax 48.9 48.8 0.2% 86.3 EPS* 12.71cts 12.33cts 3.1% 23.14cts *Note: 1. Profit before tax for the six months ended 30 June 2026 includes a gain on bargain purchase of $9.1 millionarising from the acquisition of PT AEP Pinago Plantations Tbk and its subsidiaries. 2. EPS has been retrospectively adjusted for the 10-for-1 share split completed on 25 June 2026. Average CPO Ex-mill price per mt $853 $863 -1.2% $853 Average PK Ex-mill price permt $793 $738 7.4% $739 Operational Highlights Unit 2026 6 months to30 June 2025 6 months to 30June Variance(%) 2025 Year Ended 31December FFB production ('000 mt) 544.7 530.4 2.7% 1,080.6 Mature plantation ('000 ha) 74.5 61.5 21.1% 59.6 Mill FFB processed ('000 mt) 1,121.7 1,085.3 3.4% 2,146.7 Internal FFB source ('000 mt) 451.9 491.8 -8.1% 976.6 External FFB source ('000 mt) 669.8 593.5 12.9% 1,170.1 CPO production ('000 mt) 223.6 214.3 4.3% 425.8 PK production ('000 mt) 55.5 52.7 5.3% 105.9 OER 19.9% 19.7% 19.8% KER 4.9% 4.9% 4.9% Our own FFB production rose 2.7% to 544,700 mt (2025: 530,400 mt) mainly driven by stronger production inKalimantan 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 firsthalf of the year. Production has returned to an upward trend since June.
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External FFB purchases increased by 12.9% year-on-year to 669,800 mt primarily contributed by Pinago'spurchases 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 55,500tonnes. The oil extraction rate improved to 19.9% from 19.7%, which on the volumes we processed, convertsdirectly 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, mainlyreflecting 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, 3,590hectares 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 intothe Group's results, as follows: Unit May - June 2026 Own FFB production mt 29,000 External FFB purchased mt 45,200 CPO production mt 16,200 PK production mt 3,200 Pinago provides AEP with a sizeable and established plantation platform in South Sumatra, supported byintegrated 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 meaningfulfuture growth potential as immature plantings mature and enter production. There is also material potential to improve oil-palm yields through enhanced fertiliser application, greaterharvesting 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 selectivereplanting of older trees. From the acquisition date to the end of the reporting period, Pinago contributed revenue of $18.3 million and profitbefore 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, representingapproximately 1.21% of Pinago's issued share capital, at Rp3,584 per share, for a total purchase consideration ofapproximately 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 toapproximately $160.2 million. PT Jaya Jadi Utama Subsequent to the reporting date, the Group completed the acquisition of Admiral Potential Sdn Bhd, which owns100% of PT Jaya Jadi Utama ("PT JJU"). PT JJU holds 7,169 hectares of HGU in Central Kalimantan, adjacent tothe 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: Total Mature Immature Ha ha Ha North Sumatera 18,852 16,962 1,890 Bengkulu 16,112 11,957 4,155 Riau 4,232 3,732 500
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South Sumatera 15,118 11,523 3,595 Kalimantan 19,016 17,923 1,093 Bangka 2,826 2,632 194 Rubber 3,590 2,743 847 Indonesia 79,746 67,472 12,274 Malaysia 3,414 3,414 - Total Planted Area 83,160 70,886 12,274 Plasma 4,232 3,345 887 Total: 30 June 2026 (including Plasma) 87,392 74,231 13,161 Total: 31 December 2025 69,324 59,646 9,678 Total: 30 June 2025 69,100 61,479 7,621 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 theestate was 14 years, against a target of 12. Our response is a 10,000 hectare replanting programme running to2030, 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 844hectares of replanting and 383 hectares of new planting, together with 27 hectares of plasma planting. We remainon 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, civilworks 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 obtainingrelevant 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 andferroalloys. Subsequent announcements have provided greater clarity on the proposed arrangements. DSIcommenced 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 relevantgovernment agencies. Importantly, exporters will continue to manage their existing commercial relationships anddeal 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 of2026 with full implementation targeted by end of the year. The Group continues to monitor developments as theframework 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 ofexpenses from Pinago. Profit before tax increased by 5.1% to $65.8 million (2025: $62.6 million) including $1.1 million contribution byPinago 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 lastyear, 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 increaseof 3.1%. The Group's bank borrowings stood at $13.2 million as at 30 June 2026 (30 June 2025: nil), arising from theconsolidation 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,
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together with $14.6 million in capital expenditure and $9.1 million in share buybacks, with $41.7 million in cashgenerated 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 sharebuybacks of $9.1 million, while foreign currency translation losses of $32.1 million arising from the weakening ofthe 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 31December 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 $9.1million 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 foodand 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 keyimporting markets, alongside geopolitical uncertainties and weather-related risks including potential supplydisruptions 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 andsustainability criteria.The Group remains confident in the long-term demand fundamentals for CPO andwe remainconfident of achieving market expectations for the full year. Condensed Consolidated Income Statement Notes 2026 6 months to 30 June (unaudited) 2025 6 months to 30 June (unaudited) 2025 Year to 31 December (audited) $000 $000 $000 Revenue 3 249,728 230,466 465,211 Cost of sales (189,495) (168,043) (339,982) Changes in fair value of biological assets 2,610 416 (1,408) Gross profit 62,843 62,839 123,821 Administration expenses (10,457) (4,699) (14,186) Other income 1,089 732 1,315 Gain on bargain purchase 9,062 - - Reversal of impairment loss - - 710 (Loss)/gain arising from fair value of investments (4) 297 (107) Operating profit 62,533 59,169 111,553 Exchange gains/(loss) 834 266 (176) Finance income 4 2,657 3,141 7,997 Finance expense 4 (190) (25) (44) Profit before tax 5 65,834 62,551 119,330 Tax expense 6 (16,911) (13,748) (33,015)
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Profit for the period 48,923 48,803 86,315 Profit for the period attributable to: - Owners of the parent 48,981 48,660 90,882 - Non-controlling interests (58) 143 (4,567) 48,923 48,803 86,315 Earnings per share for profit attributable to the owners of the parentduring the period - basic and diluted 8 12.71cts 12.33cts 23.14cts Condensed Consolidated Statement of Comprehensive Income 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Profit for the period 48,923 48,803 86,315 Other comprehensive loss: Items may be reclassified to profit or loss: Loss on exchange translation of foreign operations (32,085) (1,538) (15,696) Net other comprehensive loss may bereclassified to profit or loss (32,085) (1,538) (15,696) Items not to be reclassified to profit or loss: Remeasurement of retirement benefits plan, net oftax 152 - 1,852 Net other comprehensive income not being reclassified to profit or loss 152 - 1,852 Total other comprehensive loss for the period,net of tax (31,933) (1,538) (13,844) Total comprehensive income for the period 16,990 47,265 72,471 Attributable to: - Owners of the parent 17,148 46,897 75,660 - Non-controlling interests (158) 368 (3,189) 16,990 47,265 72,471 Condensed Consolidated Statement of Financial Position 2026 2025 2025 Notes as at 30 June as at 30 June as at 31 December
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(unaudited) (unaudited) (audited) $000 $000 $000 Non-current assets Property, plant and equipment 451,825 272,276 272,547 Intangible assets 680 - 262 Investments in associates 1 - 1 Investments 9 41 9,405 45 Receivables 19,909 21,007 17,800 Deferred tax assets 513 1,991 974 Defined benefit assets 1,875 - - 474,844 304,679 291,629 Current assets Inventories 44,826 23,604 27,652 Income tax receivables 5,562 18,316 4,992 Other tax receivables 34,679 29,002 41,863 Biological assets 9,862 8,448 6,383 Trade and other receivables 11,821 8,078 9,045 Investments 9 4,000 18,000 22,000 Short-term investments - - 500 Cash and cash equivalents 109,511 244,697 231,845 220,261 350,145 344,280 Total assets 695,105 654,824 635,909 Current liabilities Bank loans (8,681) - - Trade and other payables (39,130) (27,118) (28,356) Income tax liabilities (5,993) (5,466) (10,173) Other tax liabilities (4,187) (3,142) (814) Dividend payables (16,826) (20,137) (65) Lease liabilities (324) (249) (202) (75,141) (56,112) (39,610) Net current assets 145,120 294,033 304,670 2026 2025 2025 as at 30 June as at 30 June as at 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Non-current liabilities Bank loans (4,533) - - Deferred tax liabilities (27,280) (2,401) (3,062) Retirement benefits - net liabilities (8,198) (11,168) (7,972)
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Lease liabilities (542) (392) (338) (40,553) (13,961) (11,372) Net assets 579,411 584,751 584,927 Issued capital and reservesattributable to owners of the parent Share capital 15,504 15,504 15,504 Treasury shares (22,951) (3,368) (13,840) Share premium 23,935 23,935 23,935 Capital redemption reserve 1,087 1,087 1,087 Exchange reserves (413,458) (366,165) (381,476) Retained earnings 967,846 905,963 935,479 571,963 576,956 580,689 Non-controlling interests 7,448 7,795 4,238 Total equity 579,411 584,751 584,927 Condensed Consolidated Statement of Changes in Equity Attributable to owners of the parent Share capital Treasury shares Share premium Capital redemption reserve Exchange Reserves Retained earnings Total Non-controlling interests To eq Note $000 $000 $000 $000 $000 $000 $000 $000 $0 Balance at 31December 2024 15,504 (2,487) 23,935 1,087 (364,402) 877,394 551,031 7,427 55 Items of other comprehensive(loss)/income: -Remeasurementof retirement benefits plan, netof tax - - - - - 1,852 1,852 - -(Loss)/gain onexchangetranslation of foreignoperations - - - - (17,074) - (17,074) 1,378 (15 Total othercomprehensive (loss)/income - - - - (17,074) 1,852 (15,222) 1,378 (13 Profit/(loss) forthe year - - - - - 90,882 90,882 (4,567) 8 Totalcomprehensive (loss)/income forthe year - - - - (17,074) 92,734 75,660 (3,189) 7 Share buy back - (11,353) - - - - (11,353) - (1
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Dividends paid - - - - - (34,649) (34,649) - (34 Balance at 31December 2025 15,504 (13,840) 23,935 1,087 (381,476) 935,479 580,689 4,238 58 Items of othercomprehensive (loss)/income: -Remeasurementof retirement benefits plan,net of tax - - - - - 149 149 3 -(Loss)/incomeon exchange translation offoreignoperations - - - - (31,982) - (31,982) (103) (32 Total other comprehensive(loss)/income - - - - (31,982) 149 (31,833) (100) (31 Profit for theperiod - - - - - 48,981 48,981 (58) 4 Totalcomprehensive (loss)/incomefor the period - - - - (31,982) 49,130 17,148 (158) 1 Non-controllinginterests arising from acquisition - - - - - - - 3,368 Share buy back - (9,111) - - - - (9,111) - ( Dividendspayable - - - - - (16,763) (16,763) - (16 Balance at 30June 2026 15,504 (22,951) 23,935 1,087 (413,458) 967,846 571,963 7,448 57 Attributable to owners of the parent Share capital Treasury shares Share premium Capital redemption reserve Exchange reserves Retained earnings Total Non-controlling interests Total Equity $000 $000 $000 $000 $000 $000 $000 $000 $000 Balance at 31 December 2024 15,504 (2,487) 23,935 1,087 (364,402) 877,394 551,031 7,427 558,458 Items of othercomprehensive(loss)/income: - Remeasurementof retirementbenefits plan, net of tax - - - - - - - - - -(Loss)/incomeon exchangetranslation offoreign operations - - - - (1,763) - (1,763) 225 (1,538) Total othercomprehensive(loss)/income - - - - (1,763) - (1,763) 225 (1,538) Profit for the period - - - - - 48,660 48,660 143 48,803
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Totalcomprehensive(loss)/income forthe period - - - - (1,763) 48,660 46,897 368 47,265 Share buy back - (881) - - - - (881) - (881) Dividends payable - - - - - (20,091) (20,091) - (20,091) Balance at 30June 2025 15,504 (3,368) 23,935 1,087 (366,165) 905,963 576,956 7,795 584,751 Condensed Consolidated Statement of Cash Flows 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Cash flows from operating activities Profit before tax 65,834 62,551 119,330 Adjustments for: Changes in fair value of biologicalassets (2,610) (416) 1,408 Gain on disposal of property, plant andequipment (17) (68) (95) Depreciation 12,378 9,226 18,958 Retirement benefit provisions 913 1,020 2,247 Finance income (2,657) (3,141) (7,997) Finance expense 190 25 44 Unrealised gain in foreign exchange (10) (58) (23) Loss/(gain) arising from fair value 4 (297) 107 Property, plant and equipment written off 433 - 904 Reversal of impairment loss - - (710) (Reversal)/provision for expected creditloss (101) 4 (85) Gain on bargain purchase (9,062) - - Operating cash flows before changes in working capital 65,295 68,846 134,088 Increase in inventories (10,697) (4,857) (9,749) Increase in non-current, trade and otherreceivables (5,737) (3,889) (1,499) Increase in trade and other payables 7,780 5,826 7,503 Cash inflows from operations 56,641 65,926 130,343 Retirement benefits paid (465) (881) (2,615) Overseas tax (paid)/refund (14,478) 2,601 (13,903) Net cash generated from operatingactivities 41,698 67,646 113,825 2025
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2026 2025 6 months 6 months Year to 30 June to 30 June to 31December (unaudited) (unaudited) (audited) $000 $000 $000 Investing activities Acquisition of new subsidiaries (158,342) - - Cash and cash equivalents acquired on acquisition 2,837 - - Acquisition of associates - - (1) Property, plant and equipment - purchases (14,648) (11,238) (29,922) - sale proceeds 69 228 325 Intangible asset - purchases (450) - (262) Interest received 2,657 3,141 7,997 Additions to receivables from cooperatives under Plasma scheme (159) (382) (2,181) Repayment from cooperatives under Plasma scheme 280 915 3,110 Investment in investment portfolio - (30,018) (29,068) Disposal of investment portfolio 18,000 31,997 36,003 Placement of fixed deposits withoriginal maturity of more than three months - - (500) Withdrawal of fixed deposits with original maturity of more than three months 500 1,253 1,253 Net cash used in investing activities (149,256) (4,104) (13,246) Financing activities Dividends paid to the holders of the parent (2) - (34,630) Repayment of lease liabilities - principal (186) (155) (321) Repayment of lease liabilities - interest (23) (25) (44) Repayment of bank loans (114) - - Share buy back (9,111) (881) (11,353) Net cash used in financing activities (9,436) (1,061) (46,348) Net (decrease)/increase in cash and cash equivalents (116,994) 62,481 54,231 Cash and cash equivalents At beginning of period 231,845 181,908 181,908 Exchange (loss)/gain (5,340) 308 (4,294) At end of period 109,511 244,697 231,845 Comprising: Cash at end of period 109,511 244,697 231,845 Notes to the interim statements 1. Basis of preparation of interim financial statements
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These interim consolidated financial statements have been prepared in accordance with IAS 34, "Interim FinancialReporting" 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 financialstatements and should be read in conjunction with the 2025 Annual Report. The financial information for the halfyears 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 theAuditing Practices Board. Basis of preparation The annual financial statements of AEP Plantations Plc are prepared in accordance with UK adopted InternationalAccounting 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 andFinancial Statements for 2025 have been filed with the Registrar of Companies. The Independent Auditors' Reporton 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 controlof the monthly cashflows and that the Group has sufficient cash resources to cover the fixed cashflows for a periodof 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 afterconsideration of the Group's budgeted cash flows and related assumptions including appropriate stress testing ofidentified 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. 2. Foreign exchange 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) Closing exchange rates Rp : $ 17,856 16,233 16,782 $ : £ 1.3273 1.37 1.35 RM : $ 4.07 4.22 4.06 Average exchange rates Rp : $ 17,197 16,428 16.475 $ : £ 1.3453 1.30 1.32 RM : $ 3.9854 4.38 4.28 3. Revenue Disaggregation of Revenue The Group has disaggregated revenue into various categories in the following table which is intended to: • 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.
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6 months to 30 June2026 CPO andpalmkernel FFB Rubber Shellnut Biogasproducts Others Total $000 $000 $000 $000 $000 $000 $000 Contract counterparties Government - - - - 231 - 231 Non-government - Wholesalers 225,810 19,016 2,339 2,329 - 3 249,497 225,810 19,016 2,339 2,329 231 3 249,728 Timing of transfer ofgoods Delivery to customer premises - 19,016 2,339 - - - 21,355 Delivery to port of departure 48,204 - - - - - 48,204 Customers collect from our mills/estates 177,606 - - 2,329 - - 179,935 Upon generation/others - - - - 231 3 234 225,810 19,016 2,339 2,329 231 3 249,728 6 months to 30 June 2025 CPO andpalmkernel FFB Rubber Shellnut Biogasproducts Others Total $000 $000 $000 $000 $000 $000 $000 Contract counterparties Government - - - 219 - 219 Non-government - Wholesaler 219,812 7,659 - 2,772 - 4 230,247 219,812 7,659 - 2,772 219 4 230,466 Timing of transfer of goods Delivery to customerpremises 7,659 - - - - 7,659 Delivery to port ofdeparture 35,885 - - - - - 35,885 Customers collect from our mills/estates 183,927 - - 2,772 - - 186,699 Upon generation/others - - - - 219 4 223 219,812 7,659 - 2,772 219 4 230,466
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Year to 31 December 2025 CPO and palmkernel FFB Rubber Shellnut Biogasproducts Others Total $000 $000 $000 $000 $000 $000 $000 Contract counterparties Government - - - 495 - 495 Non-government - Wholesalers 437,976 21,446 - 5,288 - 6 464,716 437,976 21,446 - 5,288 495 6 465,211 Timing of transfer of goods Delivery to customer premises - 21,446 - - - - 21,446 Delivery to port of departure 83,113 - - - - - 83,113 Customers collect from ourmills/estates 354,863 - - 5,288 - - 360,151 Upon generation/others - - - - 495 6 501 437,976 21,446 - 5,288 495 6 465,211 4. Finance income and expense 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Finance income Interest receivable on: Credit bank balances and time deposits 2,657 3,141 7,997 Finance expense Interest payable on: Bank loans (167) - - Interest expense in lease liabilities (23) (25) (44) Net finance income recognised in incomestatement 2,467 3,116 7,953 5. Segment information North Sumatera Bengkulu South Sumatera Riau Bangka Kalimantan TotalIndonesia Malaysia UK HongKong
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$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 6 months to 30 June 2026(unaudited) Total sales revenue (all external) - CPO andpalm kernel 77,717 71,122 15,146 31,866 - 29,959 225,810 - - - - FFB 3,167 - 782 - 3,596 10,399 17,944 1,072 - - - Rubber - - 2,339 - - - 2,339 - - - - Shell nut 866 596 - 825 - 42 2,329 - - - - Biogasproducts - 40 - - - 191 231 - - - - Others - - 2 - - - 2 1 - - Totalrevenue 81,750 71,758 18,269 32,691 3,596 40,591 248,655 1,073 - - Profit/(loss)before tax for the period perconsolidatedincome statement 23,893 14,755 1,070 6,346 599 15,248 61,911 (915) (1,475) 6,313 Finance income 1,601 200 2 427 2 207 2,439 8 88 122 Financeexpense (6) - (168) - - (1) (175) (8) (7) - Depreciation (3,289) (1,863) (3,077) (373) (275) (3,249) (12,126) (189) (63) - (Provision)/Reversal for expected creditloss (2) (1) 108 - (1) (3) 101 - - - Inter-segmenttransactions 1,441 (1,272) - (347) (218) (145) (541) 531 10 - Inter-segmental revenue 8,662 636 2,699 - - 406 12,403 - - - Tax expense (5,993) (2,931) (74) (1,439) (68) (3,449) (13,954) (140) (2,817) - Total assets 151,179 100,192 210,990 21,999 18,558 155,534 658,452 16,041 7,417 13,195 Property,plant andequipment 71,891 55,198 191,214 8,240 15,602 100,965 443,110 8,393 322 - Property, plant andequipment - additions 3,977 4,011 1,227 668 208 4,863 14,954 139 - - Totalliabilities (21,785) (14,404) (43,684) (5,623) (707) (11,745) (97,948) (542) (17,204) - North Sumatera Bengkulu Riau Bangka Kalimantan TotalIndonesia Malaysia UK Total $000 $000 $000 $000 $000 $000 $000 $000 $000 6 months to 30 June 2025 (unaudited) Total sales revenue(all external)
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- CPO andpalm kernel 85,026 72,411 31,663 - 30,712 219,812 - - 219,812 - FFB - - - 3,141 2,944 6,085 1,574 - 7,659 - Shell nut 1,257 764 742 - 9 2,772 - - 2,772 - Biogas products 3 70 - - 146 219 - - 219 - Others - - - - - - 4 - 4 Totalrevenue 86,286 73,245 32,405 3,141 33,811 228,888 1,578 - 230,466 Profit/(loss) before tax for theperiod perconsolidated income statement 28,014 13,286 8,860 900 11,826 62,886 58 (393) 62,551 Finance income 1,776 569 328 1 59 2,733 371 37 3,141 Finance expense (6) - - - - (6) (10) (9) (25) Depreciation (3,435) (1,774) (357) (296) (3,140) (9,002) (163) (61) (9,226) Impairment losses - - - - - - - - - (Provision)/Reversalfor expected credit loss (1) (2) - - (1) (4) - - (4) Inter-segmenttransactions 2,927 (1,343) (385) (225) (1,516) (542) 532 10 - Inter-segmentalrevenue 12,570 1,918 - - 5,651 20,139 - - 20,139 Tax (expense)/credit (6,820) (2,684) (1,833) (136) (2,144) (13,617) (130) (1) (13,748) Total assets 274,932 124,425 47,489 20,560 151,959 619,365 15,946 19,513 654,824 Property,plant andequipment 79,172 54,094 7,925 16,939 105,464 263,594 8,238 444 272,276 Property, plant andequipment - additions 2,483 3,864 149 469 3,826 10,791 315 51 11,157 Totalliabilities (19,740) (13,661) (5,660) (513) (9,370) (48,944) (693) (20,436) (70,073) North Sumatera Bengkulu Riau Bangka Kalimantan TotalIndonesia Malaysia UK Tota $000 $000 $000 $000 $000 $000 $000 $000 $000 Year to 31 December 2025 (audited) Total sales revenue (allexternal) - CPO and palm kernel 172,049 137,421 60,179 - 68,327 437,976 - - 437, - FFB 102 - - 6,602 11,286 17,990 3,456 - 21,
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- Shell nut 2,421 1,416 1,412 - 39 5,288 - - 5, - Biogasproducts 3 133 - - 359 495 - - - Others - - - - - - 6 - Total revenue 174,575 138,970 61,591 6,602 80,011 461,749 3,462 - 465 Profit/(loss) beforetax for the year perconsolidated income statement 54,534 25,427 13,372 1,671 27,339 122,343 (1,086) (1,927) 119, Finance income 5,070 1,247 926 2 249 7,494 26 477 7, Finance expense (8) - - - - (8) (19) (17) Depreciation (7,114) (3,634) (841) (561) (6,349) (18,499) (336) (123) (18,9 Reversal of impairment/(impairmentlosses) - - - - 711 711 (1) - Reversal/(Provision) for expected credit loss 92 (3) - - (4) 85 - - Inter-segmenttransactions 5,835 (2,678) (1,000) (448) (3,024) (1,315) 1,040 275 Inter-segmentalrevenue 25,292 2,439 - - 7,355 35,086 - - 35, Tax expense (15,181) (4,954) (3,005) (249) (5,276) (28,665) (179) (4,171) (33,0 Total assets 270,277 104,340 63,272 19,832 152,042 609,763 21,536 4,610 635, Property, plant and equipment 76,011 56,699 8,515 16,669 105,799 263,693 8,469 385 272, Property, plant andequipment - additions 6,070 10,272 1,589 1,022 10,478 29,431 404 55 29, Total liabilities (18,736) (13,459) (5,760) (590) (10,812) (49,357) (802) (823) (50,9 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 ofthe Indonesian segment represent approximately $193.1 million of the Group's total revenue. An analysis of thisrevenue 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. 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31December (unaudited) (unaudited) (audited) $m % $m % $m % Major Customers Customer 1 36.3 14.5 51.2 22.2 91.4 19.6 Customer 2 28.3 11.3 19.1 8.3 37.0 8.0 Customer 3 14.0 5.6 16.5 7.2 34.9 7.5 Customer 4 11.3 4.5 15.2 6.6 29.8 6.4 Total 89.9 35.9 102.0 44.3 193.1 41.5
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6. Tax expense 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Foreign corporation tax - current year 16,936 13,468 29,932 Foreign corporation tax - prior year 23 204 1,821 Deferred tax adjustment - origination and reversal of temporary differences (48) 76 1,044 Deferred tax - prior year - - 218 16,911 13,748 33,015 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%). 7. 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). 8. Earnings per ordinary share ("EPS") 2026 2025 2025 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Earnings used in basic and diluted EPS 48,981 48,660 90,882 Number Number Number '000 '000 '000 Weighted average number of shares in issuein the period - used in basic EPS 385,230 394,450 392,720 - dilutive effect of outstanding share options - - - - used in diluted EPS 385,230 394,450 392,720 Basic and diluted EPS 12.71cts 12.33cts 23.14cts
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EPS has been retrospectively adjusted for the 10-for-1 share split completed on 25 June 2026. 9. Investments Investments analysed as: 2026 2025 2025 as at 30June as at 30June As at 31December (unaudited) (unaudited) (audited) $000 $000 $000 Non-current 41 9,405 45 Current 4,000 18,000 22,000 4,041 27,405 22,045 The movement of the fair value through profit and loss investment is: 2026 2025 2025 as at 30June as at 30June As at 31December (unaudited) (unaudited) (audited) $000 $000 $000 1 January 22,045 29,087 29,087 Additions - 30,018 29,068 Disposal (18,000) (31,997) (36,003) Change in fair value recognised in profit and loss (4) 297 (107) 4,041 27,405 22,045 Fair value through profit and loss financial assets includes the following: 2026 2025 2025 as at 30 June as at 30 June As at 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Quoted: Equity securities - United Kingdom 41 35 45 Bonds - Indonesia - 18,000 18,000 Bond - Singapore 4,000 4,000 4,000 Unquoted: Investment portfolio - Luxembourg - 5,370 - 4,041 27,405 22,045 Fair value through profit and loss financial assets are denominated in the following currencies:
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2026 2025 2025 as at 30June as at 30June As at 31December (unaudited) (unaudited) (audited) $000 $000 $000 Currency Sterling 41 35 45 US Dollar 4,000 27,370 22,000 4,041 27,405 22,045 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, bondsand 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 asLevel 2 in the fair value hierarchy and is determined based on valuations provided by the custodian bank, usingobservable market inputs including quoted prices of similar instruments and market interest rates. 10. 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 considerationalso 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 plantedoil 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 wereas follows: 2026 (unaudited) $000 Property, plant and equipment 198,327 Receivables 1,886 Defined benefit assets 1,727 Inventories 8,766 Tax receivables 488 Biological assets 1,382 Trade and other receivables 1,702 Cash and cash equivalents 2,837 Total identifiable assets 217,115 Trade and other payables (5,418) Deferred tax liabilities (25,333) Tax liabilities (1,724) Lease liabilities (74) Bank loans (13,523) Retirement benefits (271)
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Total liabilities assumed (46,343) Fair value of identifiable net assets acquired 170,772 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 Pinago share consideration 158,321 HMH 1% consideration 21 Consideration transferred 158,342 Non-controlling interests 3,368 Less: fair value of identifiable net assets acquired (170,772) Gain on bargain purchase (9,062) 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 betweenthe 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 themeasurement 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 adjustmentsrecognised on acquisition. After taking into account such additional depreciation, Pinago's contribution to theGroup'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. 11. 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, representingapproximately 1.21% of Pinago's issued share capital, at Rp3,584 per share, for a total purchase consideration ofapproximately 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 toapproximately $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 theGroup's KAP estate. The acquisition is expected to support FFB supply to the KAP mill and provide additionalcapacity 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 yetbeen finalised. 12. Report and financial information
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Copies of the interim report for the Group for the period ended 30 June 2026 are available on the AEP website athttps://aepplantations.com/. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END