Interim statement of the SIPEF group per 31 March 2021

April 22, 2021

• The total Group production of palm oil increased by 16.7% compared with the first quarter of last year;

• Barring exceptional weather effects, the SIPEF group should achieve the predicted annual production increase of more than 10% in 2021;

• The first quarter in the palm oil market can be characterised as a steady high-priced environment with prices averaging above USD 1 000/tonne CIF Rotterdam;

• The underlying fundamental tightness of palm oil and the current palm oil price competitiveness vis-à-vis other vegetable oils strengthen confidence in healthy prices throughout 2021;

• The Indonesian palm plantation industry has benefitted the least from this climate of high prices, as the export tax and levies skim off most of the price increases;

• The recurring 2021 results are expected to be significantly better than those of fiscal year 2020, despite the high taxes on palm oil production in Indonesia;

• Expansion in South Sumatra continues steadily with 14 332 hectares already cultivated and the replanting of the Dendymarker plantations acquired in 2017 is processing well;

• The potential sale of PT Melania to the Indonesian Shamrock group, announced at the beginning of March, is proceeding favorably.

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