DEAR SHAREHOLDERS, 2025 was a year of growth and resilience for IndoAgri. Despite geopolitical tensions and volatile commodity markets, we strengthened plantation operations and increased our refinery capacity. Our focus on sustainable practices and efficient supply chains kept us competitive and positioned us for future opportunities. Specifically, market conditions were favourable for the palm oil industry. Limited supplies, combined with strong demand from Indonesia’s biodiesel programme, helped lift CPO prices. As a result, domestic CPO prices (KPB) traded 8% higher at an average of Rp14,234 per kg in 2025, while international CPO prices (CIF Rotterdam) rose 15% to an average of USD1,283 per tonne. Palm kernel oil prices followed higher coconut oil prices, leading to a sharp increase in palm kernel prices which had a positive impact on the Group’s revenue and profitability. Sugar performance, on the other hand, was weaker in 2025. Raw sugar prices (NYMEX no. 11) contracted from a high of around 24 US cents per pound in 2024 to 15 US cents per pound by end of 2025 due to higher production in Brazil, India and Thailand, and softer demand. While price fluctuations reflect the cyclical nature of commodities, our expanded sugar crystallisation capacities at CMAA provide flexibility to optimise the sugar-ethanol mix in response to market opportunities. Against this backdrop, the Group delivered an improved set of results in 2025 with higher revenue and profitability. Total revenue grew by 32% to Rp21.1 trillion in 2025, supported by higher average selling prices and increased sales volumes of palm products and edible oils and fats. Net profit after tax improved by 19% to Rp2.5 trillion, reflecting stronger operating performance. The Plantation Division proactively managed its climaterelated risks. Leveraging the World Bank’s climatic forecasts through to 2050, we assessed regional rainfall patterns, updating our projections every six months and allocating capex for flood mitigation in high-risk areas, particularly in Kalimantan. This commitment to longterm planning ensures the resilience and productivity of our plantations, safeguarding FFB output over the 25-year lifecycle of newly planted palms. The same forward-looking approach guides our sugar planting and production decisions in Brazil. The Edible Oils and Fats Division marked an important milestone with capacity expansions and technology upgrades to support downstream growth and regulatory requirements. In November 2025, we completed a third production line at the Tanjung Priok factory in Jakarta, capable of processing up to 450,000 tonnes of CPO per year. SUSTAINABILITY AND SOCIAL RESPONSIBILITY Sustainability remains a core focus across IndoAgri operations, and we continue to uphold our commitment to zero deforestation, zero burning and zero planting on peat, while maintaining nearly 25,000 hectares of CEO’S MESSAGE FFB from our oil palm plantation Indofood Agri Resources Ltd. 8 Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance
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