Oil palm plantation at Kayangan Estate Our sugar cane plantation in South Sumatra produced 70,900 tonnes of sugar in 2025. In Central Java, our factory produced 29,100 tonnes of sugar, with 7,600 tonnes belonging to the Division and the balance belonging to the farmers who supplied the cane. 2026 OUTLOOK Amid uncertainties in weather patterns and geopolitical developments, commodity prices are expected to remain highly volatile, while global demand growth may be constrained by weaker economic conditions and challenging macroeconomic factors. Given these conditions, the Plantation Division will continue to focus on enhancing operational performance, strengthening cost management, implementing innovations to boost plantation productivity, and prioritising capital investments in key areas. in 2024. The increase was mainly attributable to higher gross profit and lower other operating expenses arising from lower impairment and write-off of property, plant and equipment, and lower provision for plasma projects. This was partly offset by losses from changes in the fair value of biological assets. Productivity and cost efficiency initiatives remained a key priority, with efforts focused on critical infrastructure, enhanced fertiliser application through nutrient analysis, preventive maintenance strategies, mechanisation programmes and usage of renewable energy sources. Following the adoption of the TCFD framework, we continued refining our ERM approach and risk assessment matrix, with targeted investments in critical areas. In addition to mitigating climate risks, we are enhancing energy conservation and sustainable resource management. We remain fully committed to our sustainability and ESG goals, diligently tracking the material issues and ensuring the proper execution of sustainability programmes. During the year, the Group’s ISPO-certified production stood at 480,000 tonnes, or 85% of total nucleus CPO production. 15 Annual Report 2025 Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance
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