Interim statement of the SIPEF group per 31 March 2022

April 21, 2022

Heading for record results

• The first quarter in the palm oil market can be characterised as a volatile environment with unseen steep prices reaching as high as USD 1 800 CIF Rotterdam per tonne in March. Even though in Indonesia, these recent price increases were to a large extent offset by export taxes and levies, net sales prices remained higher than those of the last quarter 2021;

• Total Group production of palm oil temporarily decreased by 7.0% compared with the first quarter of last year due to weather effects;

• In March 2022, the SIPEF group acquired full control of PT Agro Muko by purchasing the remaining 5% interest for an amount of KUSD 5 500;

• The expansion in South Sumatra continued steadily: already 15 248 hectares have been cultivated and the replanting of the Dendymarker plantations acquired in 2017 is largely completed;

• The Group's net cash flow was positive at the end of the first quarter;

• Despite a current production decline of 7%, the SIPEF group still assumes to reach the projected annual production growth of more than 4% for 2022;

• The war situation in the Black Sea region and the current imbalance in supply and demand for vegetable oils reinforce confidence in continued strong prices for palm oil in 2022;

• Recurring annual results, despite high taxes on palm oil production in Indonesia, are expected to be higher than those of the financial year 2021;

• Financial debt would be further reduced in 2022;

• In the first quarter of 2022, SIPEF continued to act as a socially responsible employer and provided at its own cost covid-19 vaccinations and boosters to all employees and their dependents in Indonesia, Papua New Guinea and Ivory Coast. In Indonesia a booster rate of 80% was achieved by the beginning of April.

• SIPEF continues to act in an environmentally responsible way and to conform with RSPO standards. In recent months, RSPO recertification was achieved by Hargy Oil Palms Ltd in Papua New Guinea and by PT Dendymarker Indah Lestari in Indonesia, and Rainforest Alliance recertification was achieved by Plantations J. Eglin in Ivory Coast.

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