The Plantation Division’s sugar and ethanol operations in Brazil are held and managed through IndoAgri’s 36.21% stake in CMAA and Bússola. CMAA operates three sugar and ethanol mills in Brazil with a combined annual sugar cane crushing capacity of 9.7 million tonnes, whereas Bússola owns agricultural land. 2025 REVIEW Raw sugar prices (NYMEX No. 11) declined from a peak of 24 US cents per pound in 2024 to about 15 US cents per pound by the end of 2025, driven by higher production in Brazil, India and Thailand, as well as softer demand. Our sugar operations in Brazil were impacted by weaker raw sugar prices. In 2025, CMAA crushed 8.3 million tonnes of sugar cane, compared to 9.3 million tonnes in the previous season, producing 682,000 tonnes of raw sugar, 266,000 m3 of ethanol and 378,000 MWh of electricity. The Group recognised higher losses from joint ventures losses of Rp178 billion, compared to a profit of Rp44 billion in 2024. The decline was mainly attributable to lower crushing volume following severe drought conditions in the previous year, leading to reduced raw sugar output. Performance was also affected by lower raw sugar prices, higher fair value losses on biological assets, and higher finance expenses. CMAA’s Bonsucro-certified production was 3.7 million tonnes of sugar cane, accounting for 78% of total cane production in 2025. 2026 OUTLOOK Global sugar prices are expected to be influenced by crop prospects and production in Brazil, shaped by ethanol parity, crude oil prices, the country’s biofuel policy (RenovaBio), and movements in the Brazilian Real. Prices will also be affected by developments in other key producing regions, particularly India, including potential sugar subsidies, export volumes and biofuel policy. Amid the challenging economic environment and elevated interest rates in Brazil, we will continue to focus on optimising the sugar-ethanol production mix to maximise profitability. CMAA’s UVT sugar and ethanol mill in Brazil PLANTATION REVIEW Operation in Brazil Indofood Agri Resources Ltd. 16 Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance
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