Annual Report (ESEF) • May 30, 2025
Preview not available for this file type.
Download Source Filefalse2138009ROZICGP42QP192024-01-012024-12-312138009ROZICGP42QP192023-01-012023-12-31iso4217:USDiso4217:USDxbrli:shares2138009ROZICGP42QP192024-12-312138009ROZICGP42QP192023-12-312138009ROZICGP42QP192022-12-312138009ROZICGP42QP192022-12-31ifrs-full:IssuedCapitalMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:TreasurySharesMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:SharePremiumMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:CapitalRedemptionReserveMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:RetainedEarningsMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:EquityAttributableToOwnersOfParentMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:NoncontrollingInterestsMemberifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:PreviouslyStatedMember2138009ROZICGP42QP192022-12-31ifrs-full:IssuedCapitalMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:TreasurySharesMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:SharePremiumMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:CapitalRedemptionReserveMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:RetainedEarningsMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:EquityAttributableToOwnersOfParentMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:NoncontrollingInterestsMemberifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember2138009ROZICGP42QP192022-12-31ifrs-full:IssuedCapitalMember2138009ROZICGP42QP192022-12-31ifrs-full:TreasurySharesMember2138009ROZICGP42QP192022-12-31ifrs-full:SharePremiumMember2138009ROZICGP42QP192022-12-31ifrs-full:CapitalRedemptionReserveMember2138009ROZICGP42QP192022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2138009ROZICGP42QP192022-12-31ifrs-full:RetainedEarningsMember2138009ROZICGP42QP192022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138009ROZICGP42QP192022-12-31ifrs-full:NoncontrollingInterestsMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:IssuedCapitalMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:TreasurySharesMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:SharePremiumMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:CapitalRedemptionReserveMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:RetainedEarningsMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138009ROZICGP42QP192023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember2138009ROZICGP42QP192023-12-31ifrs-full:IssuedCapitalMember2138009ROZICGP42QP192023-12-31ifrs-full:TreasurySharesMember2138009ROZICGP42QP192023-12-31ifrs-full:SharePremiumMember2138009ROZICGP42QP192023-12-31ifrs-full:CapitalRedemptionReserveMember2138009ROZICGP42QP192023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2138009ROZICGP42QP192023-12-31ifrs-full:RetainedEarningsMember2138009ROZICGP42QP192023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138009ROZICGP42QP192023-12-31ifrs-full:NoncontrollingInterestsMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:IssuedCapitalMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:TreasurySharesMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:SharePremiumMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:CapitalRedemptionReserveMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:RetainedEarningsMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138009ROZICGP42QP192024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember2138009ROZICGP42QP192024-12-31ifrs-full:IssuedCapitalMember2138009ROZICGP42QP192024-12-31ifrs-full:TreasurySharesMember2138009ROZICGP42QP192024-12-31ifrs-full:SharePremiumMember2138009ROZICGP42QP192024-12-31ifrs-full:CapitalRedemptionReserveMember2138009ROZICGP42QP192024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember2138009ROZICGP42QP192024-12-31ifrs-full:RetainedEarningsMember2138009ROZICGP42QP192024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember2138009ROZICGP42QP192024-12-31ifrs-full:NoncontrollingInterestsMember018846302024-01-012024-12-3101884630bus:Consolidated2024-12-31018846302024-12-3101884630bus:Consolidated2024-01-012024-12-31xbrli:pure01884630bus:Director12024-01-012024-12-3101884630bus:Director1bus:Consolidated2024-01-012024-12-3101884630bus:Audited2024-01-012024-12-3101884630bus:FullAccounts2024-01-012024-12-3101884630bus:FullIFRS2024-01-012024-12-31 ANNUAL REPORT 2024 SUSTAINABLE & RESILIENT FUTURE TOGETHER GROWING A Inside This Report Section 1 : OVERVIEW AND HIGHLIGHTS About AEP 2 Key Information 6 Financial Highlights 7 Financial Record 8 Estate Areas 9 Location of Estates and Mills 10 Shareholder Information 11 Section 2 : LEADERSHIP AND GOVERNANCE Chairman’s Statement 13 Directors’ Report 19 Directors’ Responsibility 23 Directors’ Profile 24 Statement on Corporate Governance 27 Audit Committee Report 34 Directors’ Remuneration Report 38 Section 3 : STRATEGIC AND OPERATIONAL REVIEW Strategic Report 48 Section 4 : FINANCIAL STATEMENTS Independent Auditor’s Report 117 Consolidated Income Statement 129 Consolidated Statement of Comprehensive Income 130 Consolidated Statement of Financial Position 131 Consolidated Statement of Changes in Equity 133 Consolidated Statement of Cash Flows 134 Notes to the Consolidated Financial Statements 136 Section 5 : COMPANY-SPECIFIC FINANCIAL STATEMENTS Company Statement of Financial Position 196 Company Statement of Changes in Equity 197 Notes to the Company Financial Statements 198 Section 6 : ADDITIONAL INFORMATION Notice of Annual General Meeting 210 Our Offices and Advisers 213 Glossary 214 & RESILIENT FUTURE TOGETHER Growing ASustainable The cover of AEP’s 2024 Annual Report, featuring a vibrant aerial view of oil palm plantations bordered by lush forests and an expansive ocean, visually embodies the tagline ‘Growing a Sustainable & Resilient Future Together’. The juxtaposition of thriving agriculture and natural ecosystems highlights our Group’s commitment to sustainable practices, environmental stewardship, and biodiversity conservation. The tagline reinforces a collaborative vision, emphasising partnerships with communities and stakeholders to ensure long-term resilience in the face of environmental and economic challenges, while the imagery symbolises the harmonious balance between productivity and nature. For more information online, scan QR Code to visit our corporate website at https://www.angloeastern.co.uk/ 37% growth in earnings Our 2024 earnings per share (“EPS”) from continuing operations grew by 37% to 171¢ per share. In response to this performance, the Board declares a dividend of 51¢ per share. Rename to AEP Plantations Plc We have refreshed our mission and vision, reinforcing our strategic focus, responsible growth and dedication to sustainability. In line with this transformation, we propose renaming our company to AEP Plantations Plc, marking a new chapter in our journey. Our reporting currency is the United State Dollar. The following currencies may appear in this Annual Report: • $ and ¢: United States Dollars and cents • £ and p: British Pound Sterling and pence • RM: Ringgit Malaysia • Rp: Indonesian Rupiah About AEP 2 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 AEP is listed in the Equity Shares (Commercial Companies) category of the London Stock Exchange. Our Company was listed in 1985. Primary activities include growing oil palms, harvesting Fresh Fruit Bunches (“FFB”), and processing them into Crude Palm Oil (“CPO”) and palm kernels. Palm oil is an important commodity and the industry employs millions of workers directly and indirectly across Indonesia and Malaysia. It is used extensively in food, cosmetics, consumer products and biofuel. AEP group of companies (“Group”) is committed to the responsible development of its plantations and facilities, with particular attention to both the environment and society in which it operates. The AEP group of companies is a producer of palm oil, operating plantations and mills across both Indonesia and Malaysia. About AEP (Continued) 3 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Our Group is currently cultivating over 57 thousand ha in mature oil palms (excluding plasma scheme) across 13 plantations in Indonesia, together with one plantation in Malaysia. The weighted average age of the trees in our Group is approximately 14 years. Our Group produced 1.0 million mt of FFB in 2024. An oil palm tree usually takes around three years from planting to harvest of the first crop and will reach peak production around year 10. Our Group has approximately 8.1 thousand ha of immature plantations as at 31 December 2024 of which 2.4 thousand ha were planted in 2024. Our Group operates 7 palm oil mills processing up to a combined capacity of 400 mt of FFB per hour. The combined OER, being the percentage of CPO extracted from FFB in 2024, averaged 20.2% while Kernel Extraction Rate, being the percentage of palm kernel extracted from FFB, averaged 4.8%. The total FFB throughput at the Group’s mills in 2024 was 2.0 million mt producing 0.4 million mt of CPO and 93 thousand mt of kernel. About AEP (Continued) Oil Palm Plantations Oil Palm Development Palm Oil Mills 4 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 In 2024, our Group purchased approximately 1.0 million mt of FFB from external/third-party producers, comprising smallholders, local farmers and plasma, for processing through our 7 mills. 4 mills are equipped with biogas plants to capture the methane gas emission to generate electricity for its own consumption, with the surplus sold to the Indonesian state authorities. This reduces the mills’ reliance on fossil fuels and improves the Group’s carbon footprint. In 2024, our Group sold 14.4 GWh of surplus electricity to the PLN, the Indonesian State Electricity Company. Further, the BioCNG (compressed natural gas derived from palm oil extraction by- products) plant in our Blankahan estate started its commercial operations in 2024 with a capacity to produce up to 760 MMBTU/day. About AEP (Continued) Third-party Crop Purchases Biogas Plants 5 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Key Information AVERAGE AGE OF OUR PALM 14 years PALM MATURITY PROFILE (DECEMBER 2024) 24% Old 12% Immature 25% Young 39% Prime OWN FFB PRODUCED VS. THIRD-PARTY FFB PURCHASED (MT) mt 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2020 2021 2022 2023 2024 Own FFB Production Third-party FFB Purchase CRUDE PALM OIL & PALM KERNEL PRODUCTION (MT) 500,000 400,000 300,000 200,000 100,000 0 2020 2021 2022 2023 2024 CPO Palm Kernel mt 6 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Financial Highlights REVENUE 2024 $372.3m 2023 $370.4m 2022 $447.6m 2021 $433.4m 2020 $263.8m OPERATING PROFIT 2024 $81.7m 2023 $69.7m 2022 $132.9m 2021 $129.3m 2020 $54.6m EARNINGS/EARNINGS PER SHARE 2024 $67.5m | 171.0¢ 2023 $49.4m | 124.9¢ 2022 $86.9m | 219.2¢ 2021 $96.1m | 242.3¢ 2020 $36.4m | 91.8¢ NET ASSETS (EXCLUDING NCI)/NET ASSETS PER SHARE 2024 $551.0m | 1,395¢ 2023 $513.6m | 1,298¢ 2022 $466.1m | 1,176¢ 2021 $440.0m | 1,110¢ 2020 $375.4m | 947¢ 7 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Financial Record Income statement 2024 $000 (Restated) 2023 $000 (Restated) 2022 $000 2021 $000 2020 $000 Continuing operations Revenue 372,263 370,435 447,619 433,421 263,818 Operating profit 81,734 69,712 132,895 129,332 54,599 Profit attributable to shareholders 67,514 49,418 86,877 96,054 36,393 Dividend proposed for year (20,139) (11,868) (9,909) (1,982) (396) Financial position $000 $000 $000 $000 $000 Non-current assets & long-term receivables 295,644 302,034 269,498 282,581 303,067 Cash net of short-term borrowings 181,908 152,984 221,476 218,249 115,211 Other working capital 81,231 64,284 81,571 38,284 32,423 Deferred tax (325) 1,313 3,145 2,994 13,607 558,458 520,615 575,690 542,108 464,308 Non-controlling interests (7,427) (6,976) (109,595) (102,078) (88,875) Net assets (excluding NCI) 551,031 513,639 466,095 440,030 375,433 Share capital 15,504 15,504 15,504 15,504 15,504 Treasury shares (2,487) (1,847) (1,171) (1,171) (1,171) Share premium and capital redemption reserve 25,022 25,022 25,022 25,022 25,022 Exchange reserves (364,402) (341,180) (288,891) (241,907) (237,599) Retained earnings 877,394 816,140 715,631 642,582 573,677 Equity attributable to shareholders’ funds 551,031 513,639 466,095 440,030 375,433 Ordinary shares in issue (‘000s) 39,976 39,976 39,976 39,976 39,976 Basic EPS (US cents) 170.88cts 124.92cts 219.19cts 242.34cts 91.82cts Dividend per share for year (US cents) 51.0cts 30.0cts 25.0cts 5.0cts 1.0cts Asset value per share (US cents) 1,395cts 1,298cts 1,176cts 1,110cts 947cts Exchange rates - year end Rp : $ 16,162 15,416 15,731 14,269 14,105 $ : £ 1.25 1.27 1.20 1.35 1.36 RM: $ 4.47 4.60 4.41 4.17 4.02 Exchange rates - average Rp : $ 15,847 15,255 14,810 14,312 14,572 $ : £ 1.28 1.24 1.24 1.38 1.28 RM: $ 4.57 4.56 4.40 4.15 4.20 * Other working capital comprises current assets, excluding cash and cash equivalents, less current liabilities and non-current liabilities, with the exception of deferred tax liabilities. 8 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Estate Areas GROUP TOTAL MALAYSIA INDONESIA TOTAL NORTH SUMATERA BENGKULU RIAU BANGKA KALIMANTAN Mills/Biogas Plants Number of Mills 7 - 7 3 2 1 - 1 Number of Biogas Plants 4 - 4 2 1 - - 1 Combined Mills Capacities (mt/hr) 400 - 400 160 120 60 - 60 Planted at 31 December 2024 Ha Ha Ha Ha Ha Ha Ha Ha Oil Palm Mature 57,241 3,414 53,827 17,857 12,382 4,775 2,437 16,376 Immature 8,133 - 8,133 1,094 4,267 - 348 2,424 Total Oil Palm 65,374 3,414 61,960 18,951 16,649 4,775 2,785 18,800 Plasma Mature 2,865 - 2,865 230 - - 307 2,328 Plasma Immature 1,171 - 1,171 - - - 202 969 Total Plasma 4,036 - 4,036 230 - - 509 3,297 Total Planted area 69,410 3,414 65,996 19,181 16,649 4,775 3,294 22,097 Others Plantable Reserve/ Oil Palm 8,282 1,646 6,636 654 - - 1,272 4,710 Unplantable Areas 7,891 1,236 6,655 999 1,350 72 2,254 1,980 Oil Palm Nursery/Mill/ Infrastructure 3,065 72 2,993 1,035 526 87 22 1,323 Total Others 19,238 2,954 16,284 2,688 1,876 159 3,548 8,013 Total Area at 31 December 2024 88,648 6,368 82,280 21,869 18,525 4,934 6,842 30,110 9 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Location of Estates and Mills 10 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Shareholder Information MARKET CAPITALISATION The market capitalisation of AEP in the United Kingdom at 31 December 2024 was £258 million (2023: £265 million) based on the closing price per share of £6.54. WEBSITE https://www.angloeastern.co.uk/ contains various details and information on AEP and its operations, together with all the key historical financial and regulatory information on our Company. The website is updated on a continuing basis incorporating all Company announcements and other relevant developments, including Environmental, Social and Governance and share price movements. The website allows shareholders and investors to select and receive e-mail alerts from AEP on selected regulatory news. Shareholders are encouraged to use e-mail alerts to follow the development of AEP. INVESTOR RELATIONS Investors requiring further information on AEP are invited to contact: Stakeholder Relations Email : [email protected] REGISTRAR Administrative queries about holdings of AEP shares can be directed to the Registrar: Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ United Kingdom Tel : +44 (0) 370 703 0164 Email : [email protected] 11 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Shareholder Information (Continued) Shareholders can view and update their account details via the Computershare website, details of which can be found at https://www-uk. computershare.com/investor/ ANNUAL GENERAL MEETING The 40 th Annual General Meeting (“AGM”) of our Company will be held at UHY Hacker Young LLP, 6 th floor Quadrant House, 4 Thomas More Square, London E1W 1YW on Monday, 23 June 2025 at 11am (UK time). The Notice of meeting will be sent to shareholders by end of May 2025. SUBMISSION OF PROXY VOTING Shareholders will receive hard copy or soft copy via email of the proxy form for the 2025 AGM. Shareholders will also be able to vote electronically by visiting http://www. investorcentre.co.uk/eproxy. Login details such as Control Number and Pin can be located on the Proxy Form included with this Notice. Shareholders who have elected for electronic communication will receive their login details via email. Proxy votes must be received no later than 11am (UK time) on Thursday, 19 June 2025. To be effective, all proxy appointments must be lodged with the Company’s Registrars at Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZZ. Holders receiving electronic communication and those with deemed consent can request to receive physical copies by contacting Computershare on +44 (0)370 703 0164. AMALGAMATION OF ACCOUNTS Shareholders receiving multiple copies of our Company mailings as a result of several accounts being maintained in their name are invited to write to the Company’s Registrar at the above address to request that their accounts be amalgamated. PAYMENT OF DIVIDENDS While the dividend is declared in US Dollars, shareholders can choose to receive their dividends in Pounds Sterling. In the absence of any specific instruction up to the date of closing of the register, shareholders with addresses in the UK will be deemed to have elected to receive their dividends in Pounds Sterling and those with addresses outside the UK will be deemed to have elected to receive their dividends in US Dollars. The Pounds Sterling equivalent dividend will be paid at the exchange rate prevailing at the date of closing of the register. Shareholders are encouraged to switch to digital dividend payments rather than payment through their nominated bank accounts or via cheque. Receiving payments via CREST will reduce the back-office resources application and meets AEP sustainability commitments to shareholders, investors and the market. The switch is easy and you can change your payment instruction by logging online through the Computershare Investor Services website. ELECTRONIC COMMUNICATIONS Computershare Investor Services PLC offers AEP shareholders the opportunity to manage their shareholding online, through the Investor Centre. Registration is free and can be used to manage shareholdings quickly and securely. To register for this service, please go to https://www-uk. computershare.com/investor/ and follow the instructions. 12 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Chairman’s Statement Our 2024 EPS from continuing operations grew by 37% to 171¢ per share, reflecting the strength of our business and team. In light of this performance, the Board is pleased to declare a dividend of 51¢ per share, reinforcing our commitment to shareholder value.” Mr Jonathan Law Ngee Song Chairman Chairman’s Statement 13 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Chairman’s Statement (Continued) 2024 HIGHLIGHTS FOR AEP GROUP - AEP Group successfully acquired the remaining minority stakes in two Indonesian subsidiaries, achieving full ownership of all its Indonesian subsidiaries. - This move reinforces operational efficiency, maximises shareholder value, and aligns with AEP’s strategy to seek quality plantation land for expansion in Malaysia and Indonesia. ACHIEVEMENT IN ESG - Indonesia’s first commercial BioCNG plant, built on our Blankahan Estate, officially commenced operations in January 2024. - The project, a significant milestone in sustainable energy, is a result of a strategic collaboration with PT KIS BioFuel Indonesia, highlighting our commitment to sustainable use of palm oil by-products. OPERATIONAL PERFORMANCE Following on, I am pleased to present the production results from continuing operations of our Group for the year ended 31 December 2024, as illustrated in the table below: Unit 2024 2023 FFB production (‘000 mt) 1,019.9 1,102.2 Mature plantation (‘000 ha) 57.2 56.7 FFB yield (mt/ha) 17.8 19.4 Mill FFB processed (‘000 mt) 1,960.8 2,155.0 Internal FFB source (‘000 mt) 971.9 1,074.8 External FFB source (‘000 mt) 988.9 1,080.2 CPO production (‘000 mt) 396.7 449.0 OER 20.2% 20.8% In 2024, our FFB and CPO production declined by 7% and 12%, respectively, compared to the previous year. The decline in production was partly due to our ongoing replanting programme and further influenced by broader regional conditions, particularly in the first half of the year, where excessive rainfall and flooding disrupted operations in certain regions. Years 2024 ($ million) 2023 ($ million) Revenue 372.3 370.4 Operating Profit 81.7 69.7 EPS 170.88¢ 124.92¢ 14 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Chairman’s Statement (Continued) In 2024, revenue from continuing operations rose to $372.3 million, representing a modest 0.5% increase from the previous year. This achievement was underpinned by elevated CPO prices, which effectively mitigated the challenges posed by reduced production levels. Profit after tax from continuing operations is $67.6 million, which is 20% higher than the $56.1 million 2023 restated, supported by a combination of elevated CPO prices and lower expenses, including fertiliser spend. Earnings per share increased by 37% to 170.88 cents, from 124.92 cents in 2023 following the full acquisition of minority interests in our Indonesian subsidiaries in 2024. RENAME TO AEP PLANTATIONS PLC As we celebrate AEP’s 40 th anniversary, I am delighted to reflect on the remarkable journey that has brought us here. Having started on the London Stock Exchange with just four estates, we have grown and evolved into 14 plantations and 7 mills, supported by a robust capital structure poised for future expansion. As a testament to the dedication, resilience, and innovation of our team, this milestone represents a celebration of collaboration and a steadfast commitment to sustainable growth. I extend my deepest gratitude to our employees, past and present, for their hard work, to our shareholders for their trust, and to the communities we work for their invaluable support. Looking forward, we remain inspired to evolve, innovate, and lead with purpose, ensuring continued success and value creation for all stakeholders. In remaining steadfast to evolve and innovate in our future undertakings, we recognise the need for our brand to reflect our evolving presence and inclusivity for diverse stakeholders. To enhance accessibility beyond our English-speaking market, we are rebranding to AEP Plantations Plc, a refined name that reflects our forward- looking vision. Our new name preserves our legacy, values, and identity while reinforcing our dedication to excellence, sustainability, and responsible growth. 15 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Chairman’s Statement (Continued) To become a key high-yielding player in sustainable palm oil production VISION We responsibly cultivate sustainable plantations by utilising best practices, driving continuous improvements, and embracing ESG principles MISSION INTRODUCTION OF NEW VISION, MISSION AND CORE VALUES In line with our strategic focus and commitment to sustainability, we have introduced our new vision and mission to highlight our focus on yield improvements. This renewed focus of ours will help us embark in a journey of continuous improvement in our operations as well as to shareholders. Looking forward, we hope to see improvements in governance and communications. CORE VALUES We A R E P WALK THE BLOCK ACCOUNTABILITY RESULT-DRIVEN EXCELLENCE TOGETHER PEOPLE We walk the field to grasp its dynamics and be in it to win it We own our actions, maintaining openness and integrity in everything we do We set clear goals, evaluate progress and achieve meaningful outcomes We aim to do better every day, pursuing continuous improvement and learning to deliver our best as a team We recognise talent and reward performance, promoting the growth and success of our people 16 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Chairman’s Statement (Continued) REPLANTING TO IMPROVE LONG TERM YIELD Actual Target 2022 2023 2024 2025 Replanting (ha) 1,100 1,301 1,700 2,575 To ensure the improvement of yields, our Company has intensified its replanting efforts in recent years. In 2024 alone, approximately 1.7 thousand hectares (“ha”) of aged, low- yielding palms were replanted. Looking ahead, AEP aims to replant around 10 thousand ha as part of its 2025–2030 programme, with 2.6 thousand ha identified for replanting in 2025. This initiative, involving the use of higher-yielding and disease-resistant palm varieties, is expected to significantly boost productivity and deliver improved and sustainable returns. DIVIDEND AND SHARE BUY-BACK The Board has taken a balanced approach to the requirement of funds in AEP for expansion in planted area as well as acquisitions of land or plantations, and at the same time cognisant of shareholders’ wishes to have dividends as a form of income. Considering the results achieved in the year, the Board has declared a first and final dividend of 51.0 cents per share (2023: 30.0 cents (interim and final)), in line with our reporting currency, in respect of the year up to 31 SUSTAINABILITY CERTIFICATIONS AND TARGETS AEP remains steadfast in its commitment to sustainable practices across our plantations in Indonesia and Malaysia, adhering to national standards such as Indonesian Sustainable Palm Oil and Malaysian Sustainable Palm Oil. Recognising the growing global emphasis on deforestation regulations, particularly from the European Union, the Board has resolved to pursue membership in the Roundtable on Sustainable Palm Oil (“RSPO”) during the year under review. This decision reflects AEP’s dedication to achieving a more robust and globally recognised certification for sustainable palm oil, addressing critical concerns related to the European Union Deforestation Regulation (“EUDR”) and broader sustainability challenges. Presently, this does not directly impact AEP as we sell our CPO to Indonesian refineries. However, we will closely monitor developments to assess emerging impacts and strategic opportunities as such regulations influence market dynamics for compliant products. Further details on this initiative can be found in the Strategic Report. The EUDR, set for enforcement by 31 December 2025, represents a pivotal shift in global trade practices. This regulation prohibits imports into the European Union (“EU”) of agricultural products derived from deforestation or illegal sources, ensuring that goods consumed within the EU contribute neither to deforestation nor forest degradation worldwide since 2020. Commodities, including palm oil, must meet stringent due diligence requirements throughout the supply chain to gain access to the EU market. Although AEP’s customers have not yet imposed mandatory EUDR compliance requirements, we have proactively undertaken measures to enhance traceability within our supply chains, particularly in the sourcing of FFB. These initiatives underscore AEP’s unwavering commitment to sustainability, transparency, and alignment with evolving industry standards. Looking ahead, AEP aims to replant around 10 thousand ha as part of its 2025–2030 programme, with 2.6 thousand ha identified for replanting in 2025. 17 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Chairman’s Statement (Continued) December 2024. This represents approximately 30% of the retained profits attributable to our Group for the year. In the absence of any specific instructions up to the date of closing of the register on 20 June 2025, shareholders with addresses in the UK will be deemed to have elected to receive their dividends in Pounds Sterling and those with addresses outside of UK will be deemed to have elected to receive their dividends in US Dollars. Subject to the approval by shareholders at the AGM, the final dividend will be paid on 18 July 2025 to those shareholders on the register on 20 June 2025. In addition to dividend distributions, AEP repurchased 71,852 Ordinary Shares at a cost of £0.5 million (equivalent to $0.6 million) with an average price of £7.05 per Ordinary Share in 2024. However, AEP intensified its efforts in 2025 and deployed £5 million via a non-discretionary programme managed by Panmure Liberum to repurchase Ordinary Shares via the open market from 20 March 2025 up to the date of AGM. AEP intends to continue with its share buy- back programme as the shares are undervalued relative to AEP strong fundamentals and growth potential. By repurchasing shares, AEP aims to enhance EPS and provide greater value to its remaining shareholders. On behalf of the Board of Directors, I would like to convey our sincere thanks to our management and employees of our Group for their dedication, loyalty, resourcefulness, commitment, and contribution to the Group. I would also like to take this opportunity to thank shareholders, business associates, government authorities and all other stakeholders for their continued confidence, understanding and support for the Group. JONATHAN LAW NGEE SONG Chairman 30 May 2025 18 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Report Our Directors present the annual report on the affairs of the Group, together with the financial statements and auditor’s report, for the year ended 31 December 2024. The Directors performance in relation to their statutory duties, together with the principal decisions taken during the year are detailed in the Strategic Report under Statements by Directors in Performance of Their Statutory Duties in Accordance with Section 172 (1) Of the Companies Act 2006. ACCOUNTABILITY AND AUDIT AEP is committed to ensure that the quality of its financial reporting is of a high standard. The Board continually reviews its internal controls and risk management systems to ensure the Group’s affairs and the Group’s financial reporting comply with the applicable accounting standards as well as good corporate governance. The main features of the Group’s internal controls and risk management systems are further disclosed in the Statement of Corporate Governance. The Board considers the Annual Report and accounts including the Strategic Report when taken as a whole, is fair, balanced and understandable as it provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. RESULTS AND DIVIDENDS For the year ended 31 December 2024, our Group recorded a profit before tax from continuing operations of $88.1million (2023: profit before tax of $77.8 million), with a profit attributable to ordinary shareholders of $67.5 million (2023: profit $49.4 million). Our Board has recommended the first and final dividend for 2024 of 51.0 cents (2023: 30.0 cents (interim and final)), subject to shareholder approval at the upcoming Annual General Meeting. If approved, the dividend will be paid on 18 July 2025 to shareholders on the register as of 20 June 2025. While the dividend is declared in US Dollars, shareholders may elect to receive payment in Pounds Sterling, as outlined in the Shareholders Information section of the Annual Report. In the absence of specific instructions by 20 June 2025, (the register closing date), shareholders with UK- registered addresses will receive their dividends in Pounds Sterling, while those with non-UK addresses will receive them in US Dollars. For shareholders opting for Pounds Sterling, the dividend will be converted at the exchange rate prevailing on 20 June 2025 (the record date). For illustration, based on the exchange rate at 30 March 2025 of $1.292/£, the equivalent dividend per share would be 39.47p. Shareholders wishing to change their currency election must do so by 20 June 2025, the last date for revocation of currency instructions. From left to right, Marcus Chan (Executive Director of Corporate Affairs), Michael Stainer (Independent Non- Executive Director), Jonathan Law (Chairman), Farah Suhanah (Senior Independent Non- Executive Director), Kevin Wong (Group CEO). 19 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Report (Continued) For several years, AEP has operated a Dividend Reinvestment Plan, allowing shareholders to reinvest their final dividends. However, after careful evaluation, AEP has decided to discontinue this programme due to administrative complexities and limited participation. ADDITIONAL DISCLOSURES Other information that is relevant to the Directors’ Report, and which is incorporated by reference into this report, can be located as follows: REFERENCE Future developments Estate Development, Strategic Report Corporate governance report Statement on Corporate Governance Colleague engagement Directors’ Remuneration Report GHG emissions Carbon Report, Strategic Report Stakeholder engagement Last Page of Strategic Report Section 172 statement Last Page of Strategic Report Financial assets policy Note 2(k) to the Consolidated Financial Statements Disclosures required pursuant to the Listing Rules can be found on the following pages: REFERENCE Listing Rule 6.6.4R Statement of capitalised interest Receivables: Non-Current, Notes to the Consolidated Financial Statements Listing Rule 6.6.6(8) Climate-related financial disclosures consistent with TCFD Climate and Nature-Related Risks and Opportunities, Strategic Report Our Company has chosen, in accordance with section 414C(11) of the Companies Act 2006, and as noted in this Directors’ Report, to include certain matters in its Strategic Report that would otherwise be required to be disclosed in this Directors’ Report. The Strategic Report includes an indication of future likely developments in the Company, details of important events and the Company’s business model and strategy. RESEARCH AND DEVELOPMENT Our Group did not undertake any research and development activities. It relies on third-parties to conduct research and development of new disease resistant and higher yield oil palm seeds. POLITICAL DONATIONS Our Group made no political donation during the year. PRINCIPAL RISKS The material risks faced by the Group, including any climate change related risks, and actions taken to mitigate those risks are set out in the Principal Risks and Uncertainties section of the Strategic Report. Information on financial instruments risks is set out in the Disclosure of Financial Instruments and Other Risks, Note 28 to the Consolidated Financial Statements. 20 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Report (Continued) PROPERTY, PLANT AND EQUIPMENT Information relating to changes in property, plant and equipment and capitalised interest, as required pursuant to Listing Rule 6.6.4R, are given in Property, Plant and Equipment, Notes to the Consolidated Financial Statements. DIRECTORS Mr Jonathan Law Ngee Song, Mr Marcus Chan Jau Chwen, Ms Farah Suhanah Tun Ahmad Sarji, Mr Michael Henry Stainer will be submitting themselves for re-appointment at the forthcoming annual general meeting. Mr Lim Tian Huat, having served for 9 years and no longer deemed independent after May 2024, did not seek re-appointment at the annual general meeting held on 24 June 2024. Mr Dato’ John Lim Ewe Chuan resigned as Executive Director on 31 December 2024. Brief profiles of all Directors and our Group Chief Executive Officer (“Group CEO”) are set out in the Directors’ profile section of this Annual Report. Our Board committees include: Audit & Risk Management Committee: • Michael Henry Stainer (Chair) • Farah Suhanah Tun Ahmad Sarji (member) Nomination Committee: • Farah Suhanah Tun Ahmad Sarji (Chair) • Michael Henry Stainer (member) • Marcus Chan Jau Chwen (member) Remuneration Committee: • Farah Suhanah Tun Ahmad Sarji (Chair) • Michael Henry Stainer (member) ESG and Corporate Governance Committee: • Marcus Chan Jau Chwen (Chair) • Farah Suhanah Tun Ahmad Sarji (member) SUBSTANTIAL SHARE INTERESTS As at 31 March 2025 and 31 December 2024, the following interests had been notified to our Company in accordance with Chapter 5 of the Disclosure Rules and Transparency Rules of the Financial Conduct Authority, being interests in excess of 3% of the issued ordinary share capital of the Company: Name of Holder As at 31.3.2025 As at 31.12.2024 Shares held % of voting rights held Shares held % of voting rights held Genton International Limited 20,247,814 51.3% 20,247,814 51.3% Nokia Bell Pensioenfonds 7,015,000 17.8% 7,015,000 17.8% * The ultimate beneficial shareholders of Genton International Limited are vested in the estates of Madam Lim Siew Kim (“Madam Lim”) with the application for probate in progress. SHARE CAPITAL, RESTRICTIONS ON TRANSFER OF SHARES, ARRANGEMENTS AFFECTED BY CHANGE OF CONTROL AND OTHER ADDITIONAL INFORMATION Our Company has one class of share capital, ordinary shares. All the shares rank pari passu. The articles of association of our Company contain provisions governing the transfer of shares, voting rights, the appointment and replacement of Directors and amendments to the articles of association. This accords with usual English company law provisions. There are no special control rights in relation to the Company’s shares. There are no significant agreements to which our Company is a party which take effect, alter or terminate in the event of a change of control of the Company. There are no agreements providing for compensation for Directors or employees on change of control. 21 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Report (Continued) CHANGE OF AUDITOR All current Directors have taken steps to make themselves aware of any information needed by the Company’s auditor for the purposes of the audit and to establish that the auditor is aware of the information. The Directors are not aware of any relevant audit information of which the auditor is unaware. In 2024, Forvis Mazars was appointed as the AEP’s auditor, succeeding BDO LLP. AUTHORITY TO ALLOT SHARES AND DISAPPLICATION OF PRE-EMPTION RIGHTS At the annual general meeting held on 24 June 2024, a significant proportion of shareholders did not support AEP’s resolution to allot equity securities with disapplication of pre-emption rights. Following the said annual general meeting, the Executive Directors engaged with shareholders who voted against the resolution to gain deeper insights into their concerns. A key theme arising from these discussions was dilution risk, with shareholders preferring case-by-case approvals over a general authority to waive pre- emptive rights. In response to shareholder feedback, AEP does not currently intend to undertake any private placement, rights issue, or allotment of shares, nor seek a general disapplication of pre-emption rights to allot shares in financial year 2025. AEP remains committed to maintaining open and transparent engagement with its shareholders and will continue to align its capital management strategies with their interests. ACQUISITION OF THE COMPANY’S OWN SHARES AND AUTHORITY TO PURCHASE OWN SHARES Our Company on 20 March 2025, announced that it has entered into an irrevocable commitment with Panmure Liberum to manage a programme to repurchase up to 3,963,637 ordinary shares of 25 pence each in the capital of our Company representing approximately 10% of the Ordinary Shares in issued. This authority expires on 30 June 2025, of if earlier, at the conclusion of the forthcoming annual general meeting. All such purchases will be market purchases made through the London Stock Exchange. Companies can hold their own shares which have been purchased in this way in treasury rather than having to cancel them. The Directors would, therefore, consider holding the Company’s own shares which have been purchased by our Company as treasury shares as this would give our Company the flexibility of being able to sell such shares quickly and effectively where it considers it in the interests of shareholders to do so. Whilst any such shares are held in treasury, no dividends will be payable on them and they will not carry any voting rights. Our Company intends to seek a renewed authority to purchase up to a maximum of 3,997, 627 ordinary shares of 25p each on the London Stock Exchange, representing 10% of the Company’s issued ordinary share capital, at the forthcoming annual general meeting. The minimum price which may be paid for an ordinary share is 25p. The maximum price which may be paid for an ordinary share on any exercise of the authority will be restricted to the higher of (i) an amount equal to 5% above the average middle market quotations for such shares as derived from the London Stock Exchange Daily Official List for the 5 business days immediately preceding the day on which such shares are purchase; (ii) an amount equal to the price of the last independent trade; and (iii) the highest current independent purchase bid on the London Stock Exchange. The maximum number of shares and the price range are stated for the purpose of compliance with statutory requirements in seeking this authority and should not be taken as an indication of the level of purchases, or the prices thereof, that AEP would intend to make. LIABILITY INSURANCE FOR COMPANY OFFICERS As permitted by the Companies Act 2006 our Company has maintained insurance cover for the Directors against liabilities in relation to our Company which remains in force at the date of this report. On behalf of the Board: MARCUS CHAN JAU CHWEN Executive Director of Corporate Affairs 30 May 2025 22 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Responsibility Our Directors are responsible for preparing the annual report and the financial statements in accordance with UK adopted International Accounting Standards (“IAS”) and applicable law and regulations. Company law requires our Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare our Group financial statements in accordance with UK adopted IAS and have elected to prepare our Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of our Group and Company and of the profit or loss for our Group for that period. In preparing these financial statements, our Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; • state whether they have been prepared in accordance with UK adopted international accounting standards, subject to any material departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that our Group and our Company will continue in business; and • prepare a Directors’ Report, a Strategic Report and Directors’ Remuneration Report which comply with the requirements of the Companies Act 2006. Our Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of our Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of our Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Our Directors are responsible for ensuring that the annual report and accounts, taken as a whole, are fair, balanced, and understandable and provides the information necessary for shareholders to assess the Group’s performance, business model and strategy. WEBSITE PUBLICATION Our Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published on the Company’s website in accordance with the legislation in the UK governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein. DIRECTORS’ RESPONSIBILITIES PURSUANT TO DISCLOSURE AND TRANSPARENCY RULES 4 (“DTR4”) Our Directors confirm to the best of their knowledge: • The financial statements have been prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group. • The annual report includes a fair review of the development and performance of the business and the financial position of our Group and Company, together with a description of the principal risks and uncertainties that they face. On behalf of the Board: MARCUS CHAN JAU CHWEN Executive Director of Corporate Affairs 30 May 2025 23 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Profile Jonathan Law Ngee Song Non-Executive Chairman Marcus Chan Jau Chwen Executive Director of Corporate Affairs, member of the Nomination Committee and Chairman of the ESG & Corporate Governance Committee Appointed as an Independent Non-Executive Director on 4 July 2013. He was appointed as the Non-Executive Chairman of AEP on 8 July 2022. Mr Jonathan Law graduated from Australia National University in 1989 with a Bachelor of Commerce and Bachelor of Laws. He was admitted as an Advocate and Solicitor, to the High Court of Malaya in 1991. He is in legal practice and currently a Partner in Messrs. Seow & & Megat handling mergers and acquisitions and corporate practice. He was previously a Partner in Azmi & Associates, Nik Saghir & Ismail and Allen & Gledhill. Mr Jonathan Law is the Non-Independent Non- Executive Chairman of Evergreen Fibreboard Berhad, listed on Bursa Malaysia. He also sits on the board of Pimpinan Ehsan Berhad as a Non- Independent and Non-Executive Director. Appointed as a Non-Independent Non-Executive Director of our Group on 10 August 2022 and redesignated as Executive Director of Corporate Affairs effective 1 October 2024. Mr Marcus Chan is deemed to be not independent as he is the son of the late Madam Lim whose estate owns 51% of the Company’s shares. Mr Chan holds a Master of Business Administration from the China Europe International Business School and is an alumnus of the University of Melbourne, Australia, where he earned a Bachelor of Commerce degree. He began his career at Ernst & Young Malaysia as an associate auditor, before advancing into roles in financial advisory, business development, marketing, and overseeing private businesses. His expertise encompasses finance, business development, and communications. 59 41 24 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Profile (Continued) Farah Suhanah Tun Ahmad Sarji Senior Independent Non-Executive Director, member of the Audit & Risk Management Committee, Chairman of the Remuneration Committee, member of the Nomination Committee, and member of the ESG & Corporate Governance Committee Michael Henry Stainer Independent Non-Executive Director, Chairman of the Audit & Risk Management Committee, member of the Remuneration Committee, and member of the Nomination Committee Appointed on 20 October 2022 as Independent Non-Executive Director and redesignated as Senior Independent Non-Executive Director effective 24 June 2024. Ms Farah was admitted as an Advocate and Solicitor of the High Court of Malaya in 1996. She graduated with a Bachelor of Arts (Hons) in Law from the University of Kent in 1988 and was admitted as a Barrister-at-Law of the Middle Temple, London in 1989. Ms Farah brings over 26 years of legal and commercial expertise across industries including oil and gas, telecommunications, satellite, and palm oil plantations. She retired as Group Legal Counsel of IOI Corporation Berhad, after previously serving as General Counsel at MEASAT Global for 10 years while managing her private legal firm. Earlier in her career, she held roles as a Magistrate, Deputy Public Prosecutor, and Federal Counsel in the Malaysian Attorney-General’s Chambers. Ms Farah is an Independent Non-Executive Director of Kluang Rubber Company (Malaya) Berhad, AEON Credit Service (M) Berhad, and Sunway REIT Management Sdn Bhd (the Manager for Sunway Real Estate InvestmentTrust). Appointed on 1 May 2024 as Independent Non- Executive Director. Mr Stainer is a highly qualified accountant and corporate treasurer, with over three decades of experience in senior finance roles across private and listed companies in sectors such as property, mining, technology, food, and public utilities. From 1992 to 2002, he served as Group Treasurer and Director of non-regulated subsidiaries at Bristol Water Holdings Plc. Mr Stainer’s expertise in financial strategies and corporate governance positions him as a key contributor to strengthening AEP’s decision- making and driving sustainable growth. 60 64 25 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Profile (Continued) Dato’ John Lim Ewe Chuan Executive Director resigned on 31 December 2024 Appointed on 26 April 2008 as the Senior Independent Non- Executive Director. On 1 September 2010 he was appointed as the Executive Director and resigned on 31 December 2024. A Chartered Certified Accountant; Dato’ John Lim retired as a Partner with UHY Hacker Young LLP, London on 30 April 2019 where he was a Partner since 1998. He previously had a professional accounting career in Singapore and the UK. 75 Lim Tian Huat Senior Independent Non-Executive Director resigned on 24 June 2024 Appointed on 8 May 2015, Mr. Lim did not seek re-election at the annual general meeting held on 24 June 2024. Mr Lim is a fellow of the Association of Chartered Certified Accountants and member of the Malaysian Institute of Accountants and Malaysian Institute of Certified Public Accountants. He is the founding President and member of Insolvency Practitioners Association of Malaysia and degree in Business Administration in Economics (Honours). He is a Chartered Accountant with his own practices and advisory firm. Mr Lim is the Senior Independent Non-Executive Director of Majuperak Holdings Berhad, Independent Non-Executive Director of DUET Acquisition Corp, and Independent and Non- Executive Director of Pacific & Orient Insurance Co. Berhad. 70 DIRECTORS RESIGNED IN 2024: Kevin Wong Tack Wee Group Chief Executive Officer 63 Joined AEP in January 2024 and appointed on 1 October 2024 as Group Chief Executive Officer. Mr Kevin Wong’s leadership experience spans multinational companies based in Malaysia and Hong Kong, where he held senior positions with regional responsibilities. Prior to joining AEP, he was Managing Director of Acapalm Plantation Services and Group Chief Financial Officer at IOI Corporation, overseeing multinational strategic financial operations and corporate governance initiatives. Mr Wong is a fellow member of the Chartered Institute of Management Accountants (FCMA), Chartered Global Management Accountant (CGMA) and a member of Chartered Accountant, Malaysia (CA, Malaysia). With a strong and proven foundation in corporate leadership, financial oversight, and plantation economics, Mr Wong continues to guide our Group toward sustainable and profitable growth. Our Group CEO does not serve as a member of the Board and does not participate in Board voting. GROUP CEO 26 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance I am pleased to report on the activities of the Corporate Governance for the year ended 31 December 2024. This Statement on Corporate Governance forms part of the Directors’ Report. COMPLIANCE WITH THE UK CORPORATE GOVERNANCE CODE AEP is committed to business integrity, appropriately high ethical standards and professionalism in all its activities and operations. This includes a commitment to high standards in corporate governance relating in particular to appropriate systems and controls adopted at a senior level of management of our Group and operation of the Board. The benchmark standards in this regard are set out in the new UK Corporate Governance Code 2024 (‘the Code’). The Code is available from the Financial Reporting Council’s (“FRC”) website at www.frc. org.uk. Our Company is in compliance with the Code except for Provisions 19 and 21. Provision 19 says that the chair should not remain in the post beyond 9 years from the date of his appointment to our Board. Mr Jonathan Law was an Independent Non-Executive Director for 9 years before his appointment as Chairman of AEP on 8 July 2022. This provision does however allow a Non-Executive Director to step up as Chairman for a limited time to facilitate effective succession planning and the development of a diverse board. The Board is of the opinion that Mr Jonathan Law should continue his role as the Chairman whilst the estate of the late Madam Lim has not been finalised. AEP was not in compliance with Provision 21 of the Code which provides for a formal and rigorous annual evaluation of the performance of the board, its committees, the chair, and individual Directors including having externally facilitated board evaluation at least once every three years. All evaluations of performances were performed internally by the Chairman (please refer to the Operation of the Board section below). In the previous financial year, AEP was not in compliance with Provision 32 due to the Chairman of the Remuneration Committee not having served on the committee for at least 12 months prior to her appointment. As the Chairman has now served in this role for over a year, AEP considers itself fully compliant with Provision 32 for the financial year ended 31 December 2024. For clarity, Provision 40 provides that notice or contract period of Directors should be one year or less. While the Directors’ contracts at AEP have a two-year term for administrative reasons, they remain compliant as they can be terminated with one or two months’ notice, which is less than one year as required by the said Provision. Please refer to the Service Contracts section of the Remuneration Report. AEP has not complied with Principle Q of the 2018 UK Corporate Governance Code, as the Group CEO presented the group-wide 2025 salary increment and 2024 bonus to the board for consideration in January 2025. However, he properly excused himself from discussions regarding his own compensation (although this was not documented in the board minutes). Moving forward, the Group CEO will have no involvement in the preparation, presentation, or discussions of his compensation package for a fully independentprocess. Monitoring compliance with the Code is the responsibility of the Nomination Committee. All Committee terms of reference have been reviewed to reflect the requirements in the Code. Board leadership and company purpose The core objective of our Board is to create and deliver the long-term sustainable success of the Company, generating value for shareholders and contributing to the wider society in a way that is supported by the right culture and behaviours. See the Business Model and Our Strategy, Strategic Report 27 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance (Continued) Division of responsibilities Our Board has agreed to a clear division of responsibilities between the running of the Board and running the business of our Group, which is supported by the corporate governance framework. Responsibilities are clearly defined in role statements to ensure that no one individual has unrestricted powers of decision-making and no small group of Directors can dominate the Board’s decision-making. Committee terms of reference determine the authority given to each of the Board’s Committees. For more details on Board composition, leadership and role statements, see the Directors’ Profile above and the remainder of this Statement on Corporate Governance. Composition, succession, and evaluation Our Board, with the support of the Nomination Committee, keeps under constant review the composition of the Board and its Committees, succession planning, diversity, inclusion, and governance-related matters. Our Board undertakes a review of its effectiveness and that of its Committees and Directors annually. See our Board section under the Statement of Corporate Governance for more details on the Board effectiveness. The activities of the Nomination Committee can be found under the remainder of this Statement on Corporate Governance. Remuneration Our Board, supported by the Remuneration Committee, ensures that the remuneration policies are designed to support strategy and promote long- term sustainable success. Executive remuneration is aligned to the successful delivery of the Company’s long-term strategy. See Directors’ Remuneration Report for more details on the remuneration policy and implementation of the policy. Audit, risk, and internal control Our Board is accountable to stakeholders for ensuring that AEP is appropriately managed. Our Board sets AEP’s risk appetite and satisfies itself that financial controls and risk management systems are robust, while ensuring AEP is adequately resourced. The Board receives regular updates on audit, risk and internal control matters with detailed oversight undertaken by the Audit & Risk Management Committee and its findings are reported to the Board. See Audit Committee Report for more details on audit, risk management and internal control and the work of the Audit & Risk Management Committee. Further details demonstrating how the Principles and Provisions of the Code have been applied can be found throughout the corporate governance report, the Directors’ report, each of the Board Committee reports and the Strategic Report. The FRC is responsible for the publication and periodic review of the UK Corporate Governance Code and this can be found on the FRC website at www.frc.org.uk. 28 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance (Continued) Disclosure required by Listing Rules on diversity, with respect of gender, and ethnicity can be found under Diversity section of the Strategic Report. RELATIONSHIP WITH CONTROLLING SHAREHOLDER Under the revised UK Listing Rules 2024, there is no longer a requirement to have a relationship agreement in place with a controlling shareholder. Instead, Listing Rules 6.6.1(13) requires AEP to confirm in its annual report whether it continues to be able to carry on its main business activity independently of its controlling shareholder or to provide an explanation if it is unable to do so. In response, AEP has identified Genton International Limited as its controlling shareholder. Our Board confirms that AEP has continued to operate independently from Genton at all times and that Genton has not influenced our Company in a manner that would be improper or unfair to minority shareholders. AEP remains committed to high standards of corporate governance and ensuring that the interests of all shareholders are safeguarded. THE BOARD Our Board is responsible for the proper leadership of our Company for the long-term success of our Company and Group. Our Board is supplied with relevant, timely, and accurate information for review prior to each meeting to enable them to discharge their duties. The Audit & Risk Management Committee is responsible for the integrity of the financial information and this is achieved by interacting with the management and with the internal auditors. The Board has identified and formally adopted a schedule of key matters that are reserved for its decision, including the annual fiscal and capital budgets, interim, preliminary, and final results announcements, dividends, the appointment of directors and Company Secretary, circulars to shareholders, Group treasury policies, acquisitions, and disposals. Other matters are delegated to committees, the details of which are set out below. AEP is led by a strong and experienced Board of Directors. By the end of 2024, the Board comprised of 5 Directors: the Non- Executive Chairman, two Executive Directors, an Independent Non-Executive Director and a Senior Independent Non-Executive Director. AEP has compiled with the Provision 11 of the UK Code, which requires that at least half the Board, excluding the Chair, should be Non-Executive Directors whom the Board considers to be independent. As part of our Board changes during the year, Dato’ John Lim, who had served as Executive Director since 1 September 2010 and was redesignated as the de facto CEO in August 2022, resigned on 31 December 2024. Additionally, Lim Tian Huat, the Senior Independent Non-Executive Director, opted to retire and did not seek re- election at the annual general meeting held on 24 June 2024. Our Board extends its appreciation to both for their contributions to AEP. The Nomination Committee will monitor continuously the future leaders and talents within our Group as well as outside the Group. This is essential to ensuring a continuous level of quality in management, in avoiding instability by helping to mitigate the risks which may be associated with unforeseen events, such as the departure of a key individual, and in promoting diversity and inclusion. Our Company continues to have a systematic approach to succession planning for Non-Executive Directors. The Chairman would normally have personal dialogue with individual Directors at least once a year to discuss the business of our Group in general and their plans, if any, to facilitate succession planning especially for directors nearing 9 years of service and for evaluation of their performance. Kevin Wong was appointed as Group CEO on 1 October 2024 to drive operational excellence in alignment with our Company’s long-term strategy. Our Group CEO does not serve as a member of the Board and does not participate in Board voting. INDEPENDENCE OF THE NON-EXECUTIVE DIRECTORS Our Board has evaluated the independence of each of its Non-Executive Directors. Following this assessment, our Board has determined that, throughout the reporting period, three of its Non-Executive Directors (including Lim Tian Huat (until his retirement on 24 June 2024), who were appointed for specified terms of office, were 29 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance (Continued) independent, based above all on their objectivity and integrity. The terms and conditions relating to the appointment of the Non-Executive Directors are available from our Company Secretary. In arriving at its conclusion, our Board considered the factors set out in Provision 10 of the UK Code including, inter alia, whether any of the Non- Executive directors: • has been an employee of our Group within the last 5 years; • has, or had within the last three years, a material business relationship with the Group; • receives additional remuneration from our Group apart from a director’s fee; • has close family ties with any of the Group’s advisors, Directors or senior employees; • holds cross-directorships or has significant links with other Directors through involvement in other companies or bodies; • has served more than 9 years on the Board; or • represents a significant shareholder. The UK Code acknowledges that a director may be regarded as independent notwithstanding the existence of any of the above factors, provided a clear explanation is given. The Independent Non-Executive Directors of our Company have a wide range of business interests beyond their position with our Company and the rest of the Board agree unanimously that they have shown themselves to be fully independent. SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR As required under Code 12, Mr Lim Tian Huat, an experienced Chartered Accountant acted in the capacity of the Senior Independent Non-Executive Director from 8 May 2015 until his retirement on 24 June 2024. Thereafter, we have redesignated Ms Farah as the Senior Independent Non-Executive Director from 24 June 2024. OPERATION OF THE BOARD A schedule of duties and decisions reserved for the Board and management respectively has been adopted. The Audit & Risk Management, Nomination, Remuneration, and ESG & Corporate Governance Committees have written terms of reference which are available for inspection upon request from our Company Secretary. The terms of reference are also available for download from the Company’s website under Sustainability - Corporate Governance section. Unless warranted by unusual matters, our Board normally meets two to three times each year. Otherwise, all other matters are dealt with by written resolution and telephone conference. In 2024 however, there were 5 formal Board meetings attended as follows: Name of Directors Attendance Jonathan Law Ngee Song (Non-Executive Chairman) 5/5 Dato’ John Lim Ewe Chuan (resigned on 31 December 2024) 5/5 Lim Tian Huat (resigned at AGM on 24 June 2024) 2/2 Marcus Chan Jau Chwen 5/5 Farah Suhanah Tun Ahmad Sarji 5/5 Michael Henry Stainer (appointed on 1 May 2024) 3/3 Agenda and minutes of previous meetings were circulated prior to meetings. The Independent Non-Executive Directors met on their own during 2024. Telephone discussions between the Chairman and the Non-Executive Directors also took place outside these meetings. In 2024, our Board followed our Group results and activities of the various subsidiaries by means of monthly reports prepared by the senior management teams in Malaysia and Indonesia. The Board deliberated on the periodic results and measured its performance against the approved budgets and previous year achievements. It also benchmarks its performance against listed plantation companies in the UK, Indonesia, Malaysia, and Belgium, with operations primarily in Indonesia. The Executive Committee which is made up of the Chairman, the Executive Director, and 30 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance (Continued) the Group CEO receive detailed briefings from the management on a quarterly basis on the Group’s performance and significant corporate issues that need addressing. In addition, they followed the development in Indonesia through operational meetings with senior management. The Board believes that given a large part of the Group’s revenue is derived from Indonesia, a closer supervision at a higher level will enhance governance to achieve the strategic objectives of the Group. The senior management operational meetings are attended by our Group CEO, Chief Corporate Planning & ESG Officer and Group Accountant from Malaysia and the management team based in Indonesia which includes the President Director, the Plantation Director, the Finance Director, Head of Mill & Engineering, and General Manager of Operations & Human Resource. Other senior managers are regularly invited to brief the Executive Committee or the Audit & Risk Management Committee on significant issues relating to operations, Internal Audit, ongoing legal cases, sustainability and risk management matters with follow up actions. The annual budget for 2025 was tabled and following deliberations were approved by the Board. The Presidential Regulation No.10 of 2021 allows foreign companies operating in Indonesia to have 100% ownership in palm oil companies. AEP successfully acquired the remaining minority stakes in two of its Indonesian subsidiaries. This strategic consolidation has not only strengthened AEP's ownership in the region but also reinforces its commitment to enhancing operational efficiency and maximising shareholder value. With these acquisitions, AEP now wholly-owns all its subsidiaries in Indonesia. As part of its strategy, our Group will continue to maintain a focus on seeking quality plantation land for expansion, especially in areas such as Malaysia and Indonesia. On 20 March 2025, our Company announced that it has entered into an irrevocable commitment with Panmure Liberum Limited to manage a non-discretionary programme to repurchase up to £5.0 million ordinary shares of AEP. Details are included in the Strategic Report. In determining the level of dividends to be paid to our shareholders, our Board has taken a balanced approach to the requirement of funds in our Company for expansion in planted areas as well as acquisitions of land or plantations, but at the same time cognisant of shareholders’ wishes to have dividends as a form of income. In the light of the results achieved in the year, together with the unutilised portion of the allocated funds for the share buyback programme, the Board has declared a final dividend of 51.0 cents per share, in line with our reporting currency, in respect of the year ended 31 December 2024 (2023: 30.0 cents (interim and final)), representing an increase of 70% from last year. Each Board member has access to the impartial advice and services of our Company Secretary, who is responsible to the Board for ensuring that appropriate procedures are followed. Where necessary, the Board members may seek independent advice from the Company’s brokers, including legal counsel at the Company’s expense. Our Company maintained Directors’ and officers’ liability insurance throughout 2024. Non-Executive Directors are normally appointed for two-year terms renewable on the recommendation of the Board. To maintain the vitality of the Board, our Company specify fixed terms of office for Non-Executive directors. However, the Board will review the position of each Director for the yearly re-election under the Code. The re-election of the Independent Non-Executive Directors have always been on the basis of gaining a majority of the independent shareholders vote in addition to the total shareholders vote since this requirement was first introduced. In 2024, our Board conducted a review of its performance by discussion. It concluded that the Board was performing effectively and that the Board members have the complementary skills appropriate to propel our Group in its strategic direction and for challenges ahead. No other major issues arose from this review. Our Company does not appoint an external consultant to conduct a formal and rigorous evaluation of the Board’s performance as our Board believes that it had performed commendably going by the financial results achieved over the years when compared to its peers. 31 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance (Continued) Following a review of the internal control and risks management in April 2024 and in the absence of any reported failure and weaknesses which the Board considered significant, it concluded that these remain effective and sufficient for their purpose. In the following years, the Board intends to implement a structured survey-based checklist as part of its performance evaluation process, to further enhance governance oversight. In connection with the statutory provisions regarding directors’ conflict of interest, the Directors must avoid a situation in which the Directors have, or can have a direct or indirect interest that conflicts, or possibly may conflict with the interests of the Company. The duty is not infringed if the matter has been authorised by the Directors. Under the Articles, the Board has the power to authorise potential or actual conflict situations. The Board maintains effective procedures to enable the Directors to notify our Company of any actual or potential conflict situations and of those situations to be reviewed and, if appropriate, to be authorised by the Board. Directors’ conflict situation if it arises is reviewed annually and authorisation is recorded in the Board minutes. NOMINATION COMMITTEE The Nomination Committee had one meeting in 2024 which were attended as follows: Name of Directors Attendance Farah Suhanah Tun Ahmad Sarji (Chair) 2/2 Lim Tian Huat (resigned at AGM on 24 June 2024) 2/2 Marcus Chan Jau Chwen 2/2 The policy on diversity is described in the Strategic Report. ACTIVITIES During the year, the Nomination Committee reviewed and deliberated on the Statement of Corporate Governance for inclusion in the annual report. As part of its commitment to Board renewal and strengthening leadership, the Committee has been actively identifying candidates with the appropriate skills, experience, and availability to enhance AEP’s Board. This process led to the identification and appointment of Michael Henry Stainer as an Independent Non-Executive Director on 1 May 2024. His extensive expertise in finance, treasury, and corporate governance across various industries enhances the Board’s overall capabilities and independence. The Committee also arranged for a formal training programme conducted by external consultants in November 2024 to update all the directors on their responsibilities and corporate governance on ESG matters. As in the past, the Board will not hesitate to arrange training on specific matters where it is thought to be required. RELATIONS WITH SHAREHOLDERS All shareholders may attend the Company’s AGM and put questions to the Board and such questions must be with at least 20 working days’ notice. At the conclusion of the AGM, a summary of votes for each resolution is reported and made available at the Company’s website as soon as practicable after the meeting. Shareholders will not receive a hard copy of the proxy form for the 2025 AGM. Instead, shareholders will be able to vote electronically using the link at https:// www-uk.computershare.com/investor/. For more details, please refer to online submission of proxy voting on Notice of 2025 AGM. The Executive Director regularly meets with principal shareholders during the year to understand their concerns and views on governance and performance. The views of the shareholders are communicated to the Board to ensure that it is mindful of the shareholders’ sentiment and issues arising at all times. The annual report, interim report, and trading statements are intended to keep the shareholders informed as to the progress in the operational and financial performance of the Group. Our Company maintains a corporate website at https://www.angloeastern.co.uk/. This website has detailed information on various 32 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Statement on Corporate Governance (Continued) aspects of the Group’s operations. The website is updated regularly and includes latest Company announcements, information on the Company’s share price, the price of crude palm oil, foreign currency movement of Indonesian Rupiah against US dollar and environmental, social and governance matters. Our Company’s results and other news releases issued via the London Stock Exchange’s Regulatory News Service are published on the “Investors Information” and “News” sections of the website and together with other relevant information concerning our Company and the Industry, are available for downloading. The website was upgraded recently to enable shareholders and investors to select and receive e-mail alerts from our Company on the selected regulatory news to follow the development of the Company. ENVIRONMENTAL AND CORPORATE RESPONSIBILITY AEP remains fully committed to responsible and sustainable plantation management across its operations in Indonesia and Malaysia. Compliance with the ISPO and MSPO standards remains a core priority, ensuring that our Group adheres to nationally mandated sustainability frameworks. Recognising the increasing global focus on deforestation-free supply chains, particularly following the introduction of the EUDR, the Board has resolved to pursue membership in the RSPO. This initiative underscores AEP’s dedication to internationally recognised sustainability certification and reinforces its commitment to best environmental and social governance practices. While AEP’s customers have not yet made EUDR compliance mandatory, our Group has proactively implemented enhanced traceability measures in its FFB sourcing to ensure alignment with evolving regulatory expectations. AEP’s sustainability initiatives and updates are periodically disclosed on the Company’s website. Further details on the Group’s approach to RSPO certification, EUDR compliance, and environmental initiatives can be found in the Strategic Report. MARCUS CHAN JAU CHWEN Chairman, ESG & Corporate Governance Committee 30 May 2025 33 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Audit Committee Report COMPOSITION The Audit & Risk Management Committee had 5 meetings in 2024, which were attended as follows: Names of Directors Attendance Michael Henry Stainer (Chair) (appointed 1 May 2024) 4/4 Lim Tian Huat (resigned at AGM on 24 June 2024) 1/1 Farah Suhanah Tun Ahmad Sarji 5/5 The current members possess relevant financial and professional experiences to discharge their specific duties with respect to the Audit & Risk Management Committee. Mr Michael Henry Stainer, in particular, has adequate financial experience to discharge his duties as the Chairman of the Audit & Risk Management Committee. Please see their qualifications in the Directors’ Profile. In 2024, Ms Farah and Mr Michael attended 11 and two external trainings programmes respectively organised by a range of professional bodies including the MBL Seminars (UK) and Aon. Several of these programmes focused on corporate sustainability and ESG practices. Both directors participated in Directors’ Duties & ESG – The Latest Case Law & Developments (MBL Seminars, UK) and Aon’s Climate and Nature Session. In addition, Ms Farah attended a wide range of technical and strategic briefings covering topics such as audit committee responsibilities, cybersecurity oversight, conflict of interest provisions under Bursa Malaysia’s amended Listing Requirements, and anti-money laundering developments. These programmes reflect their respective commitments to continuous professional development and support the Board’s ongoing efforts to uphold effective governance in an increasingly complex regulatory and ESG-driven environment. ROLES OF THE AUDIT & RISK MANAGEMENT COMMITTEE Audit & Risk Management Committee is responsible for: • monitoring the integrity of the financial statements and reviewing formal announcements of financial performance and significant reporting issues and judgements that such statements and announcements are fair, balanced and understandable for shareholders to assess the Company’s financial position and performance, business model and strategy; • monitoring and reviewing the effectiveness of internal financial controls, internal controls, and risk management systems; • making recommendations to the Board in relation to the appointment, reappointment and removal of the external auditor, their remuneration, and terms of engagement; • reviewing and monitoring the independence and objectivity of the external auditor and the effectiveness of the audit process; • developing and implementing policy on the engagement of the external auditor to supply non-audit services, ensuring there is prior approval of non-audit services, considering the impact this may have on independence, taking into account the relevant regulations and ethical guidance in this regard, and reporting to the Board on any improvement or action required; • reporting to the Board on how it has discharged its responsibilities; • providing advice to the Board on the assessment of the principal risks facing the Group; and • providing advice to the Board on the form and basis underlying the longer-term viability statement and going concern statement in the annual reports. The Committee monitors the engagement of the auditor to perform non-audit work. The ethical standard of International Standards on Auditing requires the external auditor to evaluate threats to their independence and discuss this with the Audit & Risk Management Committee. While it is the Group's ultimate responsibility to ensure that it does not engage the external auditor in any prohibited services, the external auditor will also be responsible for maintaining a record of all non-audit services undertaken and for ensuring that they do not undertake any of the prohibited services. To ensure that the external auditor satisfies these ethical standards on auditing, our Group had decided not to engage the external auditor for non-audit services for our Company and its affiliates except for the review of the interim report for compliance before announcement. The Committee considered that the nature and limited scope of, and remuneration payable in respect of, this engagement was such 34 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Audit Committee Report (Continued) that the independence and objectivity of the auditor were not impaired. The members of the Committee discharge their responsibilities by formal meetings and informal discussions between themselves, by meeting with the external auditor, the internal auditors and management and by consideration of reports by management and by holding at least two formal meetings in each year. It receives reports from executive management in Indonesia and Malaysia and focuses principally on reviewing reports from management and considers whether significant risks in our Group are identified, evaluated, managed, and whether significant weaknesses are promptly remedied including, but not limited to, commodity price movements, exchange rate movements, political and social, government legislation, and climate change. Where necessary the Committee also seek independent advice from professionals and experts. OVERVIEW During the year, the Committee reviewed and discussed the 2024 Annual Report, 2024 Interim Results, First Quarter and Third Quarter Trading Statement for 2024. The Committee also deliberated and recommended to the Board the dividend rate for the Company. The Committee updated the risks register chart annually and deliberated on the probability of various material risks from occurring and the resulting financial impact should the risks materialise. The Committee concluded that produce prices continued to be the biggest risks with high probability of occurring and with high financial impact. With our Group substantial holding in Indonesian Rupiah, the risks of currency exchange rates movement are high with medium financial impact. The country, regulatory and governance practices, environmental and conservation practice, weather and natural disasters, and other climate and nature risks have medium likelihood of happening with medium financial impacts. Information technology security risks have medium likelihood of happening with low financial impacts. All other risks are generally low in financial impact. The Audit & Risk Management Committee deliberated and set the budget targets for 2025 for the Board’s approval. The Audit & Risk Management Committee has regular dialogues, both formal and informal, with the senior management in Indonesia and Malaysia. The discussions are open and constructive. The Internal Audit Manager presented his Internal Audit plan for the year which was approved by the Audit & Risk Management Committee. He also presented his audit findings and interacted with members of the Audit & Risk Management Committee in one of the meetings. Internal audit reports were tabled and discussed in detail in the Audit & Risk Management Committee meetings in 2024. Before finalising the 2024 accounts, our Directors conducted a thorough stress test. The Directors have made this assessment after consideration of the Group’s budgeted cash flows and related assumptions including stress testing of identified uncertainties, as well as the impact of a 50% decrease in the demand for palm oil. Stress testing of other identified uncertainties and risks such as commodity prices was also undertaken. Under these scenarios, the cash flow projections indicate that our Group has adequate resources to continue operating as a going concern for the next five years. No complaints were received via the whistleblower mechanism in 2024. EXTERNAL AUDIT Forvis Mazars is our external auditor for the 2024 audit. The engagement Partner who has overall responsibility for the audit is Natalia Moolman, supported by three Audit Directors and a Partner from their firm in Indonesia who is responsible for the audit of the Indonesian components. Forvis Mazars has a policy of rotation of the senior members of the engagement team on a gradual basis in order to safeguard its ethical standard on independence and at the same time also ensuring a certain level of continuity from year to year. The Committee formally met with the external auditor twice in 2024/2025 to discuss the audit findings of 2024 and to plan the audit for 2024 financial year. The external auditor, during the audit planning meeting, highlighted to the Audit & 35 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Audit Committee Report (Continued) Risk Management Committee their scope of audit and their assessment of areas of audit risks. The significant risks include: a) risk of fraud in revenue recognition; b) management override of controls; c) impairment of property, plant and equipment; d) existence and Valuation of plasma receivables; and e) recoverability of taxes receivables Revenue recognition remains a key area of audit focus due to the presumed risk of fraud under International Auditing Standards. As a listed company with profitability and revenue as key performance indicators, AEP is exposed to the risk of overstating sales of CPO, FFB, or PK, either through fictitious transactions or premature revenue recognition. Forvis Mazars has identified the primary risk as relating to the occurrence and timing of revenue recognition, particularly the potential for recording sales before products are legally sold, leading to misstatements in the financial period. The risk of fraud due to management override of controls potentially driven by performance obligations linked to compensation or shareholders’ expectations could be achieved by manipulating judgements and estimates or through the posting of inappropriate journals in accounting records. Under IAS 16, bearer plants are treated as property, plant, and equipment at historic costs, requiring depreciation and annual assessment for indictors of impairment. The palm oil industry has the potential to be heavily impacted by climate change and sustainability regulation therefore these considerations should also be factored into any impairment considerations. This includes, but is not limited to, the physical risks such as flooding and the impact on plantation growth of rapid changes in weather patterns, as well as the transitional risks such as changes in government policy on the use of palm oil. This is a significant risk because the determination of a recoverable amount requires the use of management judgement and complex assumptions therefore there is a risk that its value may be determined incorrectly. AEP holds non-current receivables from cooperatives under the plasma programme, representing advances for plantation development and upkeep. In some cases, AEP guarantees loans granted to these cooperatives and assesses their repayment ability to determine the appropriate accounting treatment. These receivables are initially recognised at transaction price based on their legal status as repayable on demand and management’s judgment that our Group could enforce settlement from the outset. They are subsequently measured at amortised cost, less impairment. There is a risk that some receivables may be unrecoverable, particularly where AEP has issued guarantees—potentially requiring expected credit losses under IFRS 9. The Group continues to hold significant tax receivables in its Indonesian subsidiaries, primarily from historical income tax prepayments. Under Indonesian regulations, companies must prepay taxes based on prior-year results. If actual results show an overpayment, a refund must be claimed, triggering a mandatory tax audit. While both income tax and VAT refunds require audits, VAT refunds are generally faster and more straightforward. In contrast, income tax refunds often involve a lengthy and complex arbitration process that can take several years with uncertain outcomes. In 2024, we received a request from the FRC for information regarding our accounting treatment of receivables from plasma cooperatives and our share buyback programme as part of their review of our 2023 Annual Report and Accounts. For plasma receivables, the FRC requested an explanation of the accounting treatment applied by AEP to advances that our Group had made to plasma cooperatives and how that accounting treatment complied with the requirements of IFRS. AEP concluded that these advances are repayable on demand and accordingly the receivables are not discounted. We agreed to disclose this conclusion in future Annual Reports and Accounts, see ‘Note 14 Receivables: non-current’ in the 2024 Annual Report and Accounts. For the share buyback, we explained to the FRC that we had a contractual right to terminate the arrangements in certain circumstances and that the obligation at 31 December 2023 was not material. Satisfied with our comprehensive explanations, the FRC closed their enquiries in March 2025. The FRC’s Audit Quality Review (“AQR”) team conducted an inspection of the previous external auditor’s 2023 audit process as part of their routine review process. A confidential report detailing 36 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Audit Committee Report (Continued) their findings was provided to the Chairman of the Audit & Risk Management Committee. The review identified areas for improvement, specifically in the impairment assessment land and plantation assets. Additionally, improvements for future reporting were recommended concerning amounts due from plasma cooperatives, revenue recognition, deferred tax on tax loss carried forward and group audit oversight. These findings have been thoroughly reviewed and deliberated by the committee. The committee considers that matters raised do not present concerns regarding the quality, objectivity or independence of the 2023 audit process. Our assessment on the FRC’s recommendations have also been appropriately discussed with Forvis Mazars, our current external auditor, and amply addressed in the 2024 audit. The Committee carries out an assessment of the effectiveness of the external audit process annually. The assessment this year was led by the Chairman of the Audit & Risk Management Committee, assisted by the Chairman, Executive Director, our Group Chief Executive Officer, Chief Corporate Planning & ESG Officer, and our Group Accountant, focused on certain criteria which the Committee considered to be important factors in demonstrating an effective audit process. These factors included the quality of audit staff, the planning and execution of the audit according to agreed plans and timeline, provision of sound challenge on technical issues, and degree of independence and professionalism displayed during the audit for 2024. The tenure of audit and extent of non-audit work that will affect the independence of the auditor were also reviewed. During 2024, the non-audit work undertaken by Forvis Mazars was to the review of the interim report for compliance before the announcement. The Committee considered the nature, limited scope of engagement and remuneration paid were such that the independence and objectivity of the auditor were not impaired. Fees paid for audit and non-audit services are provided in note 5. The Committee considered the key members of the audit engagement team and component auditors involved in our Group Audit. This includes the Audit Partner and the Audit Directors from Forvis Mazars and the Partner from Forvis Mazars in Indonesia. Following this assessment, the Committee concluded that the external audit process remained effective, and that the objectivity of the external auditor was not impaired and that it provides an appropriate independent challenge of the senior management of the Group. INTERNAL CONTROL Our Company has followed the Code provisions on internal control since 1999 and the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting issued by the Financial Reporting Council in 2014. The Board has overall responsibility for the Group’s systems of internal control and risk management and for reviewing its effectiveness. Such a system is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Audit & Risk Management Committee reviews and monitors specific risks and internal control procedures and reports to the Board where appropriate. Executive staff and Directors are responsible for implementation of control procedures and for identifying and managing business risks. Our Group accounts and the consolidation process are reviewed by our Group CEO and the Executive Director. Our Group has in-house internal auditors who visit operating sites in Indonesia regularly based on an approved Internal Audit Plan and provide summarised internal audit reports to the Audit & Risk Management Committee on a regular basis. The Internal Audit also conducts special audits throughout the year as and when required by management. The internal audit team provides objective assurance as to the effectiveness of the Group’s systems of internal control and risk management of the Group’s operating management to the Committee. Follow-up audits and discussions are also held to ensure remedial actions are taken promptly. The internal audit review is a continuous and sequential process and in any one year does not necessarily cover all risks which are significant to the Group. The process aims to provide reasonable assurance against material misstatement or loss but cannot eliminate the risk of loss. MICHAEL HENRY STAINER Chairman, Audit & Risk Management Committee 30 May 2025 37 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Remuneration Report OVERVIEW I am pleased to report on the activities of the Remuneration Committee for the year ended 31 December 2024. This report sets out the remuneration policy and remuneration details for the Executive and Non-Executive Directors of the Group. It has been prepared in accordance with Schedule 8 of Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008. The Companies Act 2006 requires the auditor to report to the shareholders on certain parts of the Directors’ Remuneration Report and to state whether, in their opinion, those parts of the report have been properly prepared in accordance with the Regulations. The parts of the annual report on remuneration that are subject to audit are indicated in that report. The report by the Chairman of the Remuneration Committee and the policy statement are not subject to audit. ACTIVITIES During the year the Remuneration Committee reviewed the annual increment and bonus entitlement of senior management in Indonesia. In considering the bonus for 2024, the Committee took into account the achievement of the key performance criteria related to crop productions, purchases of third-party/external crops, rate of new planting, oil extraction rates, and implementation of cost reduction measures. To remain competitive, we also undertook benchmark comparisons with other plantation companies in respect of bonus payment for the year. A $20,000 benefit was provided to Mr. Marcus Chan, our Executive Director of Corporate Affairs to support his MBA pursuit, reflecting AEP’s commitment to leadership development. Kevin Wong was appointed as Group CEO on 1 October 2024 due to his extensive experience in the palm oil industry, strategic vision, and ability to drive operational excellence in alignment with the Company’s long-term strategy. In accordance with Principle 41 of the 2018 UK Corporate Governance Code, Kevin Wong’s remuneration package was approved upon his appointment, unchanged from his existing remuneration prior to this appointment. He was awarded a 2024 bonus based on his general performance in the year. Looking ahead to 2025, a remuneration package that aligns with long-term shareholder value will be recommended, incorporating performance-based incentives to reinforce sustainable growth. AEP makes mandatory contributions to the Employees Provident Fund for Kevin Wong, our Group CEO, in compliance with Malaysia’s retirement savings requirements. Mr Lim resigned from the Board at the Annual General Meeting on 24 June 2024. As part of the Board’s succession planning, the Committee actively sought appropriately qualified candidates through its network, ensuring that potential appointees not only possess the requisite skills and experience but also have the capacity and commitment to contribute meaningfully to the Board and management. Following this process, Michael Henry Stainer was appointed to the Board with effect from 1 May 2024. The Board and the Committee are also aware of the need to comply with Code 11, where at least half the Board, excluding the Chair, should be Non-Executive Directors whom the Board considers to be independent. In respect of related party transactions, all directors, and senior managers were required to declare their interests as measures to avoid or manage conflicts of interest. The Committee also deliberated on the 2024 Remuneration Report and recommended its acceptance to the Board. AEP considers its employees as important stakeholders for the Group’s long-term sustainable success. As part of the engagement of its workforce, the Chairman of the Remuneration Committee, a Non-Executive Director, conducted an online meeting with employees’ representatives and heads of employees’ cooperatives in Indonesia to discuss and obtain feedback on issues relating to their safety and welfare, working conditions, remuneration and suggestions to improve productivity. The meeting concluded that workers were generally happy and satisfied. Employees also expressed their gratitude for the continued upgrade and renovation of old housing quarters, including construction of proper drainage and sanitation facilities to improve employees’ living conditions and safety. The Chairman of the Remuneration Committee, after having discussed with 38 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Remuneration Report (Continued) management, assured the workforce that additional equipment and budget will be allocated in the coming year to progressively improve the supply of clean water. However, villages on higher elevation, clean water will continue to be delivered by tankers during the dry weather. With cost of living rising, many of the representatives requested our Company to pay higher bonuses and increment including benefits and to grant additional scholarships for higher education of which the management will look into. The employees’ representative also acknowledged major progress made by our Company to connect their houses to State Electricity Company and look forward to the day when all houses in the remote estates will be supplied with electricity replacing in-house generators. Employees also raised the suggestion to organise sports tournaments among estates and mills within our Group to foster camaraderie, teamwork, and overall wellbeing. The Chairman of the Remuneration Committee suggested that AEP could begin by organising events between estates that are geographically close to each other. There was also a request to upgrade a clinic to provide expanded range of services. The management is committed to ensuring that appropriate technical training is provided to staff for the operation and maintenance of new equipment and technology being introduced, to support safe and efficient use as well as long-term sustainability of such assets. COMPOSITION The Remuneration Committee had three meetings in 2024, which were attended as follows: Name of Directors Attendance Farah Suhanah Tun Ahmad Sarji (Chair) 3/3 Lim Tian Huat (resigned at AGM on 24 June 2024) 2/2 Michael Henry Stainer (appointed 1 May 2024) 1/1 REMUNERATION POLICY The Remuneration policy was last voted on and approved by shareholders at the 2023 AGM on 16 June 2023 for 2023 onwards. The Policy remains unchanged and was consistently applied to the remuneration of all directors for 2024. The Remuneration Policy will be updated in 2025 to incorporate provisions tailored to the Group CEO role. For reference, at the 2023 AGM, shareholders voted as follows: Shares For Shares Against % Shares For % Shares Against To approve Remuneration policy 30,820,328 649,054 97.9% 2.1% In line with the Company’s approach, the Remuneration Policy is subject to a shareholder vote every three years or sooner if changes are proposed. The Directors’ Remuneration report was approved at the 2024 AGM: Shares For Shares Against % Shares For % Shares Against To approve Directors’ Remuneration Report 30,869,958 15,149 99.9% 0.1% 39 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Remuneration Report (Continued) Our Company pays due attention to the results of voting. When there are substantial votes against any resolution in relation to directors’ remuneration, the reason for any such vote is sought and any action in response will be reported in the following year. The Committee sets the remuneration and benefits of the Executive Director and Non-Executive Directors. The Committee believes that the revision to directors’ remuneration made in 2024, reflects fair and market conditions, which will continue to motivate the performance of directors for the long- term interest of our Group and stakeholders. When determining Executive Director’s remuneration, the Committee reviews the pay policy and levels for executives below the Board, as well as pay and conditions of employees throughout the Group. Other factors considered are individual performance, market conditions, the Company’s performance, and pay and employment conditions of its other employee in the organisation and the need to maintain an economic operation. AEP’s policy on recruitment remuneration aims to attract and retain high-calibre directors with the necessary skills and experience while ensuring remuneration is aligned with the long-term interests of shareholders. Any new appointment to our Board will be remunerated in line with the Company’s existing policy, ensuring that fixed pay elements (such as salary and fees) are competitive within the industry. AEP does not currently provide variable remuneration (e.g., bonuses, share options) to its directors. As such, the disclosures relating to the approach to illustrations of the application of policy (including minimum, target and maximum remuneration scenarios), and the potential impact of a 50% increase in share price on maximum remuneration are not applicable as directors do not receive share-based compensation. Should the policy change in the future, any such elements will be disclosed accordingly. The basic salary of the Executive Director is capped at £150,000 per annum following a review in January 2023. Type Purpose Maximum payment Base salary To contain fixed costs. Capped at £150,000. The cap is reviewed periodically. The policy permits the cap to be changed if this is deemed necessary to meet business, legislative or regulatory requirements. The table below summarises the key aspects of the Group’s Remuneration Policy for the Non- Executive Directors. Type Purpose Maximum payment Fees To attract and retain individuals with suitable knowledge and experience. Determined by the Board within the limits set by the articles of association and by reference to comparable organisations and to the time commitment expected. The Committee periodically assesses the remuneration of the Directors and submits a proposal to the Board. Directors receive only fixed payments and are not eligible for share options or performance- related incentives. 40 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 The Committee makes recommendations on senior management pay and conditions, after consultation with the Chairman. In determining the remuneration policy of senior management, the Committee takes into account the need to attract, retain and motivate employees. To promote long- term sustainable success, the Committee makes external comparison with the current market trends and practices of equivalent roles considering the size, business complexity and relative performance. The following is a summary of the key components of remuneration packages of senior management: Base salary Base salaries of senior management are reviewed on an annual basis by the Remuneration Committee or when there is a change in the individual’s responsibilities. Our Group does not seek the advice of an external consultant in determining the salaries of senior management and Directors. Bonus Our Group operates a bonus scheme for the senior executives and managers of operating units, which is determined by weighted performance criteria including crop production, external crop purchase, increases in planted area, efficiency of mill performance, and overall profitability. There is however no bonus scheme for any of the Directors for good governance. The operating units in Indonesia and Malaysia have in place a variable compensation policy which over the recent years rewarded senior executives and employees with bonuses ranging from one to eight months’ pay based on the individual’s and operating units’ performance. The key criteria used in the determination of the variable compensation policy for the bonus were revised in 2014 following discussion and consultation with AEP’s previous Chairman. Share options The Company’s share option schemes have expired, and no outstanding options remain vested or unvested. Pensions The operating units in Indonesia participate in mandatory pension schemes for their local executives and management. There is no company-sponsored scheme for senior executives outside of Indonesia. The Remuneration Committee is still evaluating an appropriate gratuity scheme, based on length of service, for senior management and executives who are not covered by the group-sponsored scheme. No employees or shareholders are specifically consulted on the remuneration policy of the Company. If a significant shareholder expresses a particular concern regarding any aspect of the policy, the views expressed would be carefully weighed and addressed accordingly. In 2024, no formal concerns or objections were raised regarding the Directors’ Remuneration Policy. However, AEP remains open to ongoing dialogue with shareholders to ensure alignment with best practices and corporate governance standards. Directors’ Remuneration Report (Continued) 41 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 ANNUAL REPORT ON REMUNERATION Directors’ remuneration The following part provides details of the remuneration of all the Directors for the year ended 31 December 2024. The remuneration of all Directors who served during the year was as follows: Single total figure of directors’ remuneration (audited) $ ’000 Name 2024 2023 Fees/ Salary Other benefits Pension Total Fixed Remuneration Total Variable Remuneration Total Total/ Total Fixed Remuneration Executive Directors: Marcus Chan Jau Chwen (1) 74 20 - 94 - 94 47 Dato’ John Lim Ewe Chuan (2) 153 - - 153 - 153 148 Group CEO: Kevin Wong Tack Wee (3) 43 - 2 45 17 62 - Non-Executive Directors: Lim Tian Huat (4) 20 - - 20 - 20 40 Jonathan Law Ngee Song 55 - - 55 - 55 53 Farah Suhanah Tun Ahmad Sarji 35 - - 35 - 35 33 Michael Henry Stainer (5) 25 - - 25 - 25 - Total 405 20 2 427 17 444 321 Other than as disclosed, Directors’ remuneration consists solely of directors’ fees/salary with no additional benefits, pensions, bonuses or share option expenses. AEP did not provide any variable remuneration or benefits to Directors in 2023. There were no (i) payments made to past directors and (ii) payments made to directors as compensation for loss of office in 2024 (2023: $nil). Notes: (1) Appointed as a Non-Independent Non-Executive Director of our Group on 10 August 2022, and was appointed as Executive Director of Corporate Affairs effective from 1 October 2024. Other benefits includes $20,000 in 2024 to support his MBA pursuit, reflecting the company’s commitment to leadership development. (2) Appointed as Senior Independent Non-Executive Director on 26 April 2008, redesignated as Executive Director on 1 September 2010, and resigned on 31 December 2024. (3) Kevin Wong continued to be paid on the same basis per his contract prior to his appointment as CEO during 2024. Amounts reported are prorated to reflect his compensation for the period from his appointment as Group CEO on 1 October 2024 to 31 December 2024. (4) Appointed on 8 May 2015 and resigned at AGM on 24 June 2024. (5) Appointed on 1 May 2024. Directors’ Remuneration Report (Continued) 42 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Remuneration Report (Continued) CHIEF EXECUTIVE’S REMUNERATION OVER 10 YEARS Kevin Wong Tack Wee (Group CEO) (1) Year ended 31 December Salary ($’000) Benefit ($’000) Pension ($’000) Bonus ($’000) Total ($’000) % of maximum bonus 2024 43 - 2 17 62 59% Dato’ John Lim Ewe Chuan (2) Year ended 31 December Total ($’000) 2024 153 2023 148 2022 93 2021 87 2020 103 2019 116 2018 123 2017 113 2016 127 2015 137 Notes: For 2024, the maximum potential bonus of the Group CEO is 8 months of salary. (1) Mr Kevin Wong is not registered as a director at Companies House, but is appointed as a Group CEO. As required by the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 para 2(), this table shows his remuneration after this appointment as Group CEO. (2) Dato’ John Lim’s basic salary was revised to £120,000 per annum with effect from 1 January 2023. From September 2022 to 31 December 2022, his salary was £90,000 per annum. Between September 2020 to August 2022, it was £63,000 per annum. Prior to this, his salary from 2015 to 2019 was £90,000 per annum. The fluctuations during this period were the result of exchange translations. Dato’ John does not receive any bonus. 43 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 DIRECTORS’ INTERESTS (AUDITED) The interests of our Directors together with those of their immediate families in the securities of our Company were as shown below: Directors' beneficial interests at 31 December: 2024 2023 Ordinary shares Ordinary shares Marcus Chan Jau Chwen - - Jonathan Law Ngee Song - - Farah Suhanah Tun Ahmad Sarji - - Michael Henry Stainer - - Kevin Wong Tack Wee (Group CEO) - - Dato’ John Lim Ewe Chuan (resigned on 31 December 2024) 15,894 15,894 Lim Tian Huat (resigned before 31 December 2024) n/a - The ultimate beneficial shareholders of Genton International Limited are vested in the estates of Madam Lim with the application for probate in progress. There has been no change in the interests of our directors in the securities of our Company between 31 December 2024 and the date of this report. Other than Dato’ John Lim, none of our Directors had any interest in the securities of our Company between the date of their appointments and the date of this report. There is no requirement for Directors to hold shares in the Company. Other than as set out in notes to the consolidated financial statements, no Director had a material interest in any contract of our Company subsisting during, or at the end of the financial year. No Directors had any share options in the current or prior year. Directors’ Remuneration Report (Continued) RELATIVE IMPORTANCE OF SPEND ON PAY 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - $’000 64,823 59,266 Total Group Employee Remuneration 2023 Total Dividend Paid 2024 15,854 5,923 2024 2023 44 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 PERCENTAGE ANNUAL CHANGE IN DIRECTORS’ REMUNERATION AND FOR EMPLOYEES (NOT SUBJECT TO AUDIT) Our Directors have service agreements with AEP. Our Company has no employees other than our Directors therefore voluntary disclosure has been given based on our Group’s employee information. The table below shows the annual change in our Directors’ pay compared with the Group’s average pay for an employee for 2020 to 2024. Our Directors’ total remuneration for 2023 and 2024 are disclosed in page 42 of the Annual Report. 2023/2024 Annual change in pay for directors compared with average employees Executive Director Non-Executive Directors AEP Average Employees Marcus Chan Jau Chwen Kevin Wong Tack Wee Jonathan Law Ngee Song Farah Suhanah Tun Ahmad Sarji Michael Henry Stainer Base Salary/ Fees +57% 2024 is first year of appointment. - +6% - -5% Benefits * - - - -26% Bonus - - - - -15% 2022/2023 Annual change in pay for directors compared with the Group’s average employees Executive Director Non-Executive Directors Group’s Average Employees Dato’ John Lim Ewe Chuan Jonathan Law Ngee Song Lim Tian Huat Marcus Chan Jau Chwen Farah Suhanah Tun Ahmad Sarji Base Salary/Fees +59% +71% +74% +327% +450% +1% Benefits - - - - - +16% Bonus - - - - - +15% 2021/2022 Annual change in pay for directors compared with the Group’s average employees Executive Director Non-Executive Directors Group’s Average Employees Dato’ John Lim Ewe Chuan Jonathan Law Ngee Song Lim Tian Huat Marcus Chan Jau Chwen Farah Suhanah Tun Ahmad Sarji Base Salary/Fees +7% +48% +10% - - +6% Benefits - - - - - +55% Bonus - - - - - +36% Directors’ Remuneration Report (Continued) 45 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 2020/2021 Executive Director Non-Executive Directors Group’s Average Employees Dato’ John Lim Ewe Chuan Jonathan Law Ngee Song Lim Tian Huat Marcus Chan Jau Chwen Farah Suhanah Tun Ahmad Sarji Base Salary/Fees -16% - - - - +12% Benefits - - - - - -5% Bonus - - - - - +32% 2019/2020 Group’s Average Employees Executive Director Non-Executive Directors Group’s Average Employees Dato’ John Lim Ewe Chuan Madam Lim Siew Kim Lim Tian Huat Jonathan Law Ngee Song Base Salary/Fees -11% -4% - - -6% Benefits - - - - +13% Bonus - - - - -13% 1. Directors’ fees may be paid in $ and other currencies. 2. Mr Marcus Chan Jau Chwen’s compensation was adjusted to commensurate his transition from a Non- Executive role to Executive Director (Corporate Affairs) effective 1 October 2024. * He received no benefits in 2023 and $20,000 benefit in 2024. 3. Mr Lim Tian Huat and Dato’ John Lim resigned in 2024 and are therefore removed from the 2024/2023 comparison. SERVICE CONTRACTS All Directors, Executive and Non-Executive, have formal appointment letters. The Executive and Non- Executives are appointed normally on a one to two-year term with notice periods of one month to three months. The service contracts are kept at the registered office and may be inspected by shareholders on request. Notice periods for all other senior management are generally three months. Therefore, any remuneration payment for loss of office will be capped at a maximum of three months. It is not our Company policy to include provisions in Directors’ service contracts, compensation for early termination beyond providing for an entitlement to payment in lieu of notice if due notice is not given. The unexpired terms of the retiring Directors are: Jonathan Law Ngee Song Expiry on next AGM Marcus Chan Jau Chwen Expiry 30 September 2025 Farah Suhanah Tun Ahmad Sarji Expiry on next AGM Michael Henry Stainer Expiry on next AGM The unexpired terms of Group CEO is: Kevin Wong Tack Wee Expiry 8 January 2026 (three-month notice) Directors’ Remuneration Report (Continued) 46 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Directors’ Remuneration Report (Continued) The performance graph illustrates our Company’s share price trajectory relative to the FTSE 100 index from January 2015 to March 2025, providing insight into market volatility and trends over the past decade. Using January 2015 as the base, AEP’s share price has consistently matched or exceeded the FTSE 100 index. The FTSE 100 index was chosen for comparison due to the absence of an index specific to our business. As of March 2025, AEP’s share price closed at £7.40, reflecting a price-to-earnings ratio of merely 4.4x. This valuation appears modest given AEP’s solid business fundamentals, highlighting a disconnect between our Company’s intrinsic value, earnings, and prospects. Factors contributing to this situation may include limited trading liquidity, concerns about the environmental implications of palm plantation activities, and our Company’s operational presence outside the European Union (“EU”), whereas a significant portion of its investor base (aside from AEP’s controlling shareholder) resides within the EU. It is important to note that the Remuneration Committee bases senior management compensation on operational performance rather than share price movements. FARAH SUHANAH TUN AHMAD SARJI Chairman, Remuneration Committee 30 May 2025 SHARE PRICE PERFORMANCE GRAPH % Change Trading volume Year FTSE 100 Index AEP Share Price Trading Volume Source: Financial Times 47 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report OPERATIONAL KPIs YIELD PER HA: Measures the amount of palm oil produced per hectare of plantation land. 2024: 17.8mt/ha 2023: 19.4mt/ha MILL UTILISATION RATE: Measures the percentage of the mill's total processing capacity being used. 2024: 102% 2023: 132% OER: Evaluates the efficiency of oil extraction from FFB. . 2024: 20.2% 2023: 20.8% SUSTAINABILITY KPIs SCOPE 1 & 2 EMISSIONS: Measures direct and indirect GHG Emissions of our Group. 2024: 1.2 million tCO 2 e 2023: 1.1 million tCO 2 e COMPLIANCE WITH SUSTAINABILITY POLICIES: Ensures adherence to relevant sustainability standards and policies. 2023 & 2024: We are compliant certified with MSPO, ISPO, TCFD, ISO 14001, and ISCC. RSPO certification is in progress. SPOTT SCORE: Assesses our public disclosure and transparency regarding ESG practices. 2024: 60.2% 2023: 51.6% FINANCIAL KPIs GROSS PROFIT MARGIN: Measures the percentage of revenue remaining after deducting production costs. 2024: 23.8% 2023: 21.1% NET PROFIT MARGIN: Tracks the percentage of revenue left after all expenses, including taxes and interest. 2024: 18.2% 2023: 15.1% 48 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) INTRODUCTION This Strategic Report has been prepared to provide shareholders with information to complement the financial statements. This report may contain forward-looking statements, which have been included by our Board in good faith based on information available up to the time of approval of this report. Such statements should be treated with caution going forward given the uncertainties inherent with the economic and business risks faced by our Group. BUSINESS MODEL Our Group will continue to focus on its strength and expertise, which is sustainably cultivating oil palm for Fresh Fruit Bunches (“FFB”) and to turn them into Crude Palm Oil (“CPO”). To increase production and reduce cost, our business activities revolve mainly around the following: Plantations Palm Oil Mill Optimisation of existing assets Implement best management practices to ensure the effective management of established oil palm plantations Enhance the efficiency of operations at existing palm oil mills and increase the sourcing of FFB from surrounding plantations to boost productivity and overall performance Expansion into strategic locations Acquire new oil palm plantations in Indonesia and Malaysia to strengthen the AEP’s sustainable growth Setup or acquire new mills to serve the company’s plantations and surrounding smallholders 49 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) AEP recognises the importance of its workforce which needs to be rewarded with a fair compensation scheme based on performance, and a safe and a comfortable workplace, together with good accommodation facilities, and other social benefits where necessary. AEP’s work culture revolved around the WE r AEP core values. The culture is instilled throughout the workforce, via these three main channels: Lead by Example: Our managers and leaders shall demonstrate the core values in their behaviour to inspire others to emulate the same values, fostering trust, respect, and alignment within the organisation. Simplify and Engage: The core values are displayed prominently with simple language, relatable concepts and infographics to ensure the message resonates and stays memorable. Recognise and Reinforce: We celebrate and reward employees who demonstrate the core values through their behaviour and work. This positively reinforces the concept and encourages others to follow suit. We A R E P WALK THE BLOCK ACCOUNTABILITY RESULT-DRIVEN EXCELLENCE TOGETHER PEOPLE We walk the field to grasp its dynamics and be in it to win it We own our actions, maintaining openness and integrity in everything we do We set clear goals, evaluate progress and achieve meaningful outcomes We aim to do better every day, pursuing continuous improvement and learning to deliver our best as a team We recognise talent and reward performance, promoting the growth and success of our people 50 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) INTRODUCTION OF OUR NEW VISION AND MISSION As we continue to chart a path forward, we are proud to introduce our new vision and mission statements, which reflect our unwavering commitment to sustainability and excellence. Our vision is clear: To be a high-yielding leader in sustainable palm oil production. This aspiration serves as the foundation for our growth, driving us to lead with excellence and responsibility in all aspects of our operations. Aligned with this vision, our mission to “responsibly cultivate sustainable plantations by utilising best practices, driving continuous improvements, and embracing ESG principles” emphasises our dedication to maintaining high standards of environmental stewardship, fostering positive social impact, and ensuring economic viability for long-term success. This mission guides our efforts to achieve excellence in sustainable palm oil production while contributing to a better future for communities, stakeholders, and the planet. These statements reflect our commitment to creating value for stakeholders and protecting the environment for future generations. Sustainable success is achieved by prioritising the long-term interests of shareholders, employees, and local communities. OUR STRATEGY Our strategic focus is to enhance the yield of our Indonesian plantations to 23 mt/ha by 2027, bringing us to towards the upper quartile of our Indonesian oil palm peers. A yield enhancement programme focusing on the following is being implemented: • Replanting of old palm (>25 years). • Problem identification, rectification and rehabilitation of low yielding plantations. Our revenue is largely correlated to: • The CPO price - which is volatile and determined by supply and demand. • Crop yield, which we aim to optimise with best management practices but is also affected by factors beyond our control such as well as the weather. The Indonesian government has imposed restrictions impacting companies not listed in Indonesia or those with less than majority local ownership, such as AEP. These regulations limit the development of oil palm plantations to a maximum of 20 thousand ha per province, with an overall national cap of 100 thousand ha. Beyond these regulatory constraints, the availability of suitable land for palm plantation development is increasingly scarce, further curbing AEP’s expansion efforts. Despite these challenges, our Group remains steadfast in its commitment to the responsible and sustainable development of its land bank in both Indonesia and Malaysia. Building on a long- standing history of ethical practices and growth, AEP continues to prioritise sustainability and compliance in its operations, focusing on yield improvements. Our Group maintains a strong belief in the long- term potential of palm oil. With its economic production advantages compared to alternative oils and its status as the most productive source of vegetable oil, palm oil continues to play a vital role in meeting the demands of a growing global population. AEP remains focused on leveraging these strengths to deliver value while upholding its commitment to sustainable practices and responsible growth. For comparison, the land needed to process one litre (per annum) of refined palm oil vs other refined crop oils is as follows: Crop Area required to produce 1L Palm 1.7 m 2 Soybean 22.4 m 2 12x more land needed than palm Rapeseed 8.4 m 2 4x more land needed than palm Sunflower 10.5 m 2 5x more land needed than palm Corn 58.1 m 2 34x more land needed than palm Peanut 9.4 m 2 5x more land needed than palm 51 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Other crops would require 4 to 34 times more land to produce an equivalent weight of palm oil. In this regard, palm oil is far more sustainable than other edible vegetable oils. In addition, oil palm has a long and productive biological life of 25 years compared to yearly planting for other soft oils. Where feasible, we establish our own mills in or near our plantations for several strategic and operational reasons: • Cost efficiency and increased profit margins: By processing FFB on-site, we reduce transportation costs and minimise delays, ensuring the freshness of the fruit and higher OERs, along with being able to capture more value from the supply chain. • Quality Control: By owning our own mills, we are able to maintain strict quality standards throughout the production process, ensuring premium-grade CPO. • Sustainability: Integrated mills enable us to adopt eco-friendly practices by utilising by-products like Empty Fruit Bunches (“EFB”) and Palm Oil Mill Effluent (“POME”) for energy generation via Biogas and BioCNG plants or repurposing them as organic fertilisers, and ensuring efficient waste management systems. • Operational Independence: Plantations with own mills are not reliant on external processing facilities, reducing logistical challenges and potential bottlenecks in production. In addition to our own FFB, our mills accept FFB from external sources including crops from our Plasma scheme, and surrounding plantations including small holders and communities. Despite stiff competition for external crops from surrounding millers, AEP is committed to purchasing more external crops from these external sources at competitive, yet fair prices, to maximise the production efficiency of our mills. With higher throughput, the mills would achieve economies of scale in production. AEP achieved a mill utilisation rate of 102% in 2024 vs 135% in 2023. A mill is deemed to achieve 100% mill efficiency when it operates 16 hours a day for 300 days per annum. AEP is taking active steps to reduce its carbon footprint by constructing biogas and/or BioCNG plants at its mills in stages. The surplus electricity generated through Biogas plants is sold to the national grid. Additionally, the methane from Biogas may be purified and compressed into BioCNG cylinders in a BioCNG plant for industrial use. This increased industrial adoption of BioCNG is expected to reduce fossil fuel consumption, further lowering Green House Gases (“GHG”) emissions per metric ton of CPO produced over the coming years. Additionally, AEP plans to utilise EFB, the byproduct left after stripping palm fruitlets from FFB during CPO production, as a feedstock to enhance BioCNG output in response to market demand. This initiative aligns with our goal to reduce waste and reduce GHG emissions. Our Group has also set metrics and targets to lower GHG emissions over time as detailed in the Decarbonisation modelling and high-level target setting. 52 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT Our Group has complied with the requirements of Section 414CB of the Companies Act 2006 by providing a wide range of non-financial information about employees, environmental, and social matters in the table below and in our website. Additionally, AEP has identified key non-financial performance indicators to measure progress, particularly in relation to carbon emissions and alignment with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations set out in this Strategic Report. Non-financial matter Policies and standards which govern our approach Page Business model Business model and strategy Principal risks and uncertainties 48 73 Environmental matters Principal risks and uncertainties: Country, regulatory and governance practices Principal risks and uncertainties: Weather and Environmental and conservation practices Sustainable Palm Oil Certification ESG practices Climate-related financial disclosures: - Management of Climate Risks - Metrics and targets - Carbon Reporting Corporate Governance: Environmental and corporate responsibility Other responsible agricultural practices and sustainable policies can be found on our website Board diversity 73 77 69 70 79 106 105 27 111 Employees and Health & Safety Employees: Employment policies Directors’ Remuneration Report: Employees engagement Workers are protected from exposure to occupational health and safety hazards that are likely to pose immediate risk of permanent injury, illness or fatality. Proper signages are in place at relevant spots to alert employees of safety. Workshops and training sessions on occupational safety and health care are regularly conducted. 112 38 Social matters Principal risks and uncertainties: Highly Contagious & Severe Diseases, AEP has implemented stringent policies and protocols to control and prevent the spread of highly contagious and severe diseases, drawing on lessons learned from the Covid-19 pandemic. These measures aim to safeguard the workplace environment and include strict procedures for workplace testing, employee self-isolation when necessary, and home support for affected individuals. This support ensures employees achieve full recovery before returning to work. 77 Respect for human rights AEP has clear policies of no exploitation of its employees, including complying with paying minimum wage. It does not practise child or forced labour in line with the Modern Slavery Statement referred to on its website. In addition, a whistle blowing policy is in place to allow any employee to raise concerns about unethical, illegal or questionable practices, in full confidence, without the risk of reprisal. 64 53 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Non-financial matter Policies and standards which govern our approach Page Anti-corruption and anti-bribery matters AEP has in place policies and procedures in respect of bribery and corruption, with detailed guidelines and reporting requirements for its UK, Indonesian and Malaysian operations. 113 FINANCIAL REVIEW For the year under review, our Group’s continuing operations had achieved the following: 2024 2023 FFB production (’000 mt) 1,019.9 1,102.2 Mature plantation (’000 ha) 57.2 56.7 FFB Yield (mt/ ha) 17.8 19.4 FFB processed (’000 mt) 1,960.8 2,155.0 FFB source 49.6% internal 50.4% external 49.9% internal 50.1% external CPO production (’000 mt) 396.7 449.0 OER 20.2% 20.8% Average gate price (USD per mt) 794 721 Performance of the business during the year • The average CPO price ex-Rotterdam for 2024 was $1,096/mt, 12.9% higher than 2023’s $971/mt. The ex-mill price for 2024 averaged $794/mt, 10.1% higher than last year’s $721/mt. • FFB production from continuing operations totalled 1.0 million mt, a 7% decline from the 1.1 million mt recorded in 2023. Additionally, the yield from plantations decreased to 17.8 mt/ha (2023: 19.4 mt/ ha), primarily due to lower crop production in the Bengkulu and Bangka plantations. • FFB purchased from third-parties including local smallholders and plasma in 2024 amounted to 1.0 million mt, reflecting a 8% decrease from 1.1 million mt in 2023. Our mills processed a total of 2.0 million mt of FFB, 9.1% lower than the 2.2 million mt processed last year. • CPO production was 11.6% lower at 396.7 thousand mt, compared to 449.0 thousand mt in 2023, partially offset by a lower OER of 20.2% against 20.8% in 2023. Kernel production for 2024 stood at 93.4 thousand mt, 10.1% lower than last year’s 103.9 thousand mt. • Revenue from continuing operations rose to $372.3 million, reflecting a 0.5% increase compared to $370.4 million in 2023. The increase was primarily due to higher average CPO ex-mill price. The positive pricing impact helped offset declines in both own crop production, which fell by 7%, and third-party crop volumes, which were down 8%. • Administrative expenses increased by 2%, rising from $8.8 million to $9.0 million. This growth is primarily attributed to an increase in headcount and inflation-driven salary adjustments at headquarters. • Operating profit from continuing operations was $81.7 million, reflecting a 17.2% increase from $69.7 million in the previous year. This improvement was supported by higher CPO prices and savings in operational costs, despite a decrease in production volume. • Finance income decreased by 33%, declining from $8.0 million to $5.4 million. This reduction was primarily due to lower cash holdings, following the allocation of $86.6 million near the end of 2023 to acquire non-controlling interests and an additional $24 million for investments during FY2024. 54 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) • Profit before tax from continuing operations for our Group was $88.1 million, 13.2% higher compared to $77.8 million in 2023. The changes in fair value of biological assets was a credit of $2.9 million, contrasting with a debit of $0.9 million in 2023. This credit was mainly due to higher FFB prices as of 31 December 2024. Tax expenses for 2024 reduced from $21.7 million to $20.5 million. • EPS from continuing operations rose from 124.92cts to 170.88 cts, primarily due to higher profit after tax. • Loss on exchange translation of foreign operations of $23.2 million was recognised in other comprehensive income, compared to an exchange gain of $10.0 million in the previous year. This loss was driven by the weakening of the Indonesian rupiah at the end of 2024. • Retirement benefits as of 31 December 2024, calculated by a third-party actuary, decreased to $11.1 million from $11.3 million in the previous year due to lower accrual during the year. Position of the business at the end of the year Our Group’s statement of financial position remains strong, with a cash and cash equivalents balance including short-term investments (see Note b) of $183.1 million and no external borrowing at the end of 2024. All material changes in statement of financial position and cash flows are listed in the following table: Note 31.12.2024 $000 31.12.2023 $000 Property, plant, and equipment a 271,170 274,382 Income tax liabilities b (5,466) (2,951) Cash and cash equivalents b, c 181,908 152,984 Short-term investments b, c 1,253 14,076 Current assets - Investment b, c 23,976 - Trade and other receivables d 7,062 13,378 Trade and other payables e (21,403) (26,862) Non-controlling interest f 7,427 6,976 Net cash generated from operating activities d 73,947 31,855 Purchase of property, plant and equipment (29,013) (33,421) Net cash used in financing activities g (7,363) (115,934) a. The decrease in property, plant, and equipment from $274.4 million in 2023 to $271.2 million in 2024 was mainly due to depreciation and exchange translation losses, partially offset by replanting activities. b. As of 31 December 2024, our Group held cash and cash equivalents of $181.9 million (2023: $153.0 million) and short-term investments in fixed deposits of $1.2 million (2023: $14.1 million). The higher cash position, including fixed deposits, was primarily from profits generated during the year. Net cash inflow from operating activities increased by 132%, reaching $73.9 million in 2024 compared to $31.9 million in 2023, largely due to higher profit and lower tax payment in 2024. Tax payments are settled in the following year, so the lower tax payment in 2024 reflects taxes for 2023’s lower profits, while the higher tax payment in 2023 corresponds to 2022’s higher profits. c. During the year, our Group had invested $24.0 million in Indonesia government bonds in US Dollar and US treasury bills. d. Trade and other receivables declined by $6.3 million, primarily due to timing differences in trade receivables and a reduction in other receivables. The decrease in other receivables was largely attributed by the share buyback completed in June 2024, which utilised $0.6 million from the 2023 year-end advance and $2.9 million received from our share buy-back broker in FY2024. 55 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) e. Trade and other payables decreased by $5.5 million, primarily due to the recognition of $2.0 million in previously received customer advances as revenue, reflecting the fulfilment of related obligations, and supplier payments totalling $3.5 million. f. Non-controlling interest increased due to the share of profit in Anglo-Eastern Plantations (M) Sdn Bhd. g. Net cash used in financing activities significantly dropped to $7.4 million in 2024, compared to $115.9 million in 2023. This sharp decrease was primarily due to the reduced expenditure on acquiring non-controlling interests, which amounted to $86.6 million in 2023 versus $0.4 million in 2024, coupled with the absence of dividend payments to non- controlling interests and interim dividends to AEP shareholders in 2024. VIABILITY STATEMENT The viability assessment considers solvency and liquidity over a 5-year period. Inevitably, the degree of certainty reduces over a longer period. Our Group’s business activities, financial performance, corporate development and principal risks associated with the local operating environment are covered under the various sections of this Strategic Report. In undertaking the review of our performance in 2024, our Board considered the prospects of our Group, as focusing on the strategy for growth via the expansion of its planted area in tandem with forecasting demand for CPO, over one to 5-year periods. The process involved a detailed review of the annual detailed budget and the 5-year income and cash flow projection. The one-year budget is used to set detailed budgetary targets at all levels across the Group. The 5-year income and cash flow projection contain less certainty of the outcome but provides a robust planning tool against which strategic decisions can be made. The Board believes that to project beyond 5 years has more elements of uncertainties and therefore less reliable for making informed decisions. Our Board considered the 5-year cash flow projection under various severe but plausible scenarios. Additionally, our Board assessed the need to support any financially loss-making newly matured estates, namely PT Kahayan Agro Plantation and PT Bangka Malindo Lestari. They also considered the projected capital expenditure required for these estates. In arriving at the conclusion that our Group has adequate resources to continue operations and meet its liabilities over the next five years, the Board has assumed a worst-case scenario in which the CPO price averages its lowest at $500/mt and demand for CPO drops by 50%. Assumptions applied are linked to risk of CPO price fluctuation, risk of a substitute for oil palm. On this basis and other matters considered and reviewed by the Board during the year, the Board has a reasonable expectation that our Group has adequate resources to continue in operation and meet its liabilities over the 5 years from 2025 to 2029. GOING CONCERN Our Directors have carried out stress tests, factoring in the identified uncertainties and risks such as commodity prices. This is to ensure that our Group has adequate resources in a worst-case scenario to remain as a going concern for at least 12 months from the date of this report. Our Directors have a reasonable expectation, having made the appropriate enquiries, that our Group has sufficient cash resources to cover the Group’s operating expenses for a period of at least 12 months from the date of approval of these financial statements. For these reasons, our Directors adopted a going concern basis in the preparation of the financial statements. Our Directors have made this assessment after consideration of the Group’s budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties, as well as impact when demand on palm oil decreased by 50%. Stress testing of other identified uncertainties and risks such as CPO prices and CPO demand were also undertaken. 56 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) BUSINESS REVIEW Plantations Plantation FFB production Mature planted FFB yield 2024 2023 2024 2023 2024 2023 ’000 mt ’000 mt ’000 ha ’000 ha mt/ha mt/ha North Sumatera 397.5 409.0 17.8 18.2 22.3 22.5 Riau 111.7 123.0 4.8 4.8 23.4 25.7 Bangka 18.6 21.1 2.4 1.7 7.6 12.3 Bengkulu 179.3 223.8 12.4 13.2 14.5 17.0 Central Kalimantan 297.2 312.8 16.4 15.4 18.1 20.4 AEP Indonesia 1,004.3 1,089.7 53.8 53.3 18.7 20.4 Terengganu, Malaysia 15.6 12.5 3.4 3.4 4.6 3.6 AEP Group 1,019.9 1,102.2 57.2 56.7 17.8 19.4 For 2024, in general, there was 7% and 9% reduction in the Group’s FFB production and FFB yield respectively. This was primarily due to reduced production in Indonesia, stemming from our replanting programme, coupled with the prolonged effects of the dry weather experienced in 2023 in some estates, which stressed the oil palms and lowered their productivity. At the same time, excessive rainfall in many estates during 2024 further compounded the challenges by diminishing fertiliser effectiveness, disrupting harvesting activities, and damaging plantation roads. Our replanting efforts, though vital for ensuring long-term yield sustainability, have a temporary adverse impact on short-term yields. Palms designated for replanting undergo a process where fertiliser application is withdrawn two years prior to replanting, leading to lower productivity during this period. Following replanting, the area remains non-productive for an additional three to 4 years while the new palms mature and become productive. In 2024, 1.7 thousand ha of old palm were replanted with an additional 5.5 thousand ha designated for replanting in 2025 and 2026. INDONESIA The performance of the Indonesian operations was divided into 6 geographical regions. North Sumatera FFB production in North Sumatera, which aggregates the estates of Musam Utjing, United Kingdom Indonesia Plantation, Simpang Ampat, Tasik Raja, Anak Tasik, Cahaya Pelita Andhika (“CPA”), and Hijau Pryan Perdana (“HPP”) produced 397.5 thousand mt in 2024, about 3% lower than last year. • 279 ha was replanted and CPA in 2024 with more areas earmarked for replanting in 2025. • The withdrawal of fertilisers for areas meant for replanting means that these areas will most likely have lower/higher yields. • Due to the outbreak of Ganoderma affecting our trees, continued palm losses at HPP limits our potential yield upside. Quick supplying of dead palms ensures a steady palm density in HPP which helped to maintain yield. Poor root anchorage, as well as sub-optimal nutrient retention and absorption caused by peat soil is another factor for low bunch weight at HPP. The average annual yield for 2024 in North Sumatera remained similar at 57 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) 22.3 mt/ha to the previous year’s yield of 22.5 mt/ha. Although yield in Blankahan was still over 25 mt/ha, replanting has commenced in 2025 due to advanced palm age and their reducing oil content. Bengkulu • FFB production which aggregated the estates of Mitra Puding Mas and Alno Agro Utama produced 179.3 thousand mt (2023: 223.8 thousand mt), 20% lower than 2023 due to the reduction of matured palms because of replanting. • As such, mature areas were smaller by 6% in 2024 at 12.4 thousand ha from 13.2 thousand ha. • Tractors with attached water tank trailers were used to water newly planted palms to ensure sufficient irrgation. With more replanting, the average stands per ha have improved to 111 stands per ha from slightly below 106. The yield, however, was lower at 14.5mt/ha from 17.0 mt/ha last year due to aging palms, replanting activities and lingering impact of dry weather from 2023. Riau • FFB production comprised of Bina Pitri estates which produced 111.7 thousand mt in 2024 (2023: 123.0 thousand mt), or 9% lower than previous year. • Monthly rainfalls were close to normal at 2,672 mm. • Yield for the year was 23.4 mt/ha, a 9% reduction from last year. As 80% of the palms are between the ages of 26 and 29 years, and replanting is planned to be started in 2025. Bangka • FFB production in the Bangka region, comprising the Bangka Malindo Lestari estate, produced 18.6 thousand mt in 2024 (2023: 21.1 thousand mt), 12% lower than 2023. • Extreme dry weather which was experienced in 2023 and 2024 has contributed for the lower yield in 2024. Rainfall in 2023 was 1,642mm with 4 months of just 26 mm to 95 mm per month. Kalimantan • FFB production in Kalimantan which comprises the Sawit Graha Manunggal (“SGM”) and Kahayan Agro Plantation (“KAP”) estates was 297.2 thousand in 2024 (2023: 312.8 thousand mt), 5% lower than 2023. During the year, 757 ha of palms came into maturity in SGM and KAP leading to its first harvest. • Breeding and releasing of weevils to help with pollination has reduced the extent of abnormal fruit bunches reported in the previous year. • The average bunch weight was nevertheless below industrial standard due to the sandy podzolic soil at SGM, but the higher stands per ha made up for the yield. • The stand per ha in SGM and KAP plantations averaged 133 stands and 118 stands per ha respectively. The yield in Kalimantan decreased by 11% to 18.1 mt/ha in 2024. Rainfall in KAP was 4,151 mm (2023: 4,009 mm) while at SGM, at 2,764 mm (2023: 2,043 mm). MALAYSIA The retention of our foreign workers remains a challenge as competition offers more lucrative offers from other industries. As such, our plantation experienced a shortage of workers which hampered not only field maintenance work and application of fertilisers but harvesting, resulting in crop losses. The palms, with an average age of over 25 years, faced declining yield. The stand per ha further reduced due to the damages caused by wild elephants. However, production and yields of the plantation has increased in 2024 compared to 2023 due to efforts by management to improve operational efficiency including harvesting round and improvements in access. Our Group will continue to try to maximise production from the existing palms while assessing the feasibility of replanting and exploring alternative initiatives to utilise the land more productively and sustainably. 58 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Mills Mill FFB processed CPO production OER 2024 2023 2024 2023 2024 2023 ’000 mt ’000 mt ’000 mt ’000 mt North Sumatera 725.9 724.8 146.7 150.1 20.2% 20.7% Riau 341.0 345.6 62.8 65.3 18.4% 18.9% Bengkulu 548.6 633.9 109.1 129.9 19.9% 20.5% Central Kalimantan 345.3 450.7 78.1 103.7 22.6% 23.0% AEP Indonesia/ Group 1,960.8 2,155.0 396.7 449.0 20.2% 20.8% Throughput (i.e. FFB processed) in 2024 was generally lower in 2024 than in 2023 due to the reduced production in Indonesia. OER was also marginally lower possibly caused by additional moisture from the wet weather of 2024. 2024 CPO production was 11.6% lower than in 2023. The mix of our own crops vs total FFB processed remains similar to previous year at around 50%. OER are typically lower in our Sumatera mills compared to Central Kalimantan due to the higher volume of external FFB processed in Sumatera. These external FFB often contain the dura palm strain, which has a thinner mesocarp (less pulp) and lower oil content compared to the tenera variety predominantly cultivated in our plantations. North Sumatera • Our three mills in North Sumatera, under United Kingdom Indonesia Plantations (Blankahan), Tasik Raja (Tasik), and HPP produced marginally lower CPO compared to 2023 due to the slightly lower OER. • The HPP mill has yet to officially begin operations in 2024 and has only been processing small batches of our own fruits as test run. Commercial CPO production of the mill has been ramping up from January 2025. Bengkulu • Our two Bengkulu mills, under Mitra Puding Mas (“MPM”) and Alno Agro Utama processed 13.5% less FFB than 2023 and, hence, produced less CPO. Riau • Our BPJ mill located in Riau produced 3.8% less CPO in 2024 due both to the slightly lower FFB processed and OER. • Our competition for external crops in Riau has intensified due to the rise of mini mills since early 2022, spurred by high CPO prices. That said, we managed to increase our 2024 external FFB purchased (including Plasma) in Riau by 3.0%. Kalimantan • Our SGM mill located in Central Kalimantan produced 24.7% less CPO in 2024 than in 2023. • External FFB (including Plasma) purchased was 57.9% less than in the previous year while internal FFB decreased by 6.6%. • We also experienced a decrease in both quality and quantity of FFB sent from our KAP estate to be processed at SGM mill due to delays in delivery caused by damaged roads and labour shortage. • Lastly, upgrading works were performed on SGM mill in 2024, where our engineers have taken measures to minimise disruptions to the operation. 59 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) BIOGAS & BioCNG AEP achieved a significant milestone in renewable energy as the first commercial BioCNG (Compressed Natural Gas) plant to commence operations in Indonesia on 22 January 2024. Located adjacent to our mill in Blankahan, North Sumatra, the plant was constructed and managed by PT KIS Biofuel Indonesia with the strategic collaboration of AEP. In accordance with the Build-Own-Operate-Transfer agreement, ownership of the BioCNG plant will be transferred to AEP by 2039. AEP receives a share of the BioCNG sales (subject to minimum annual amount) and potential carbon credit sales (if any in the future). However, we do not foresee this as a significant contributor to AEP’s future income stream. • In North Sumatera, biogas from our Blankahan biogas plant was mainly allocated to production of BioCNG. In year 2024, Blankahan plant sold about 1,769 MWh to PLN versus 6,455 MWh in 2023 surplus electricity and generated 54,373 mmBTU of BioCNG. • Our Tasik biogas plant did not sell any surplus electricity in 2024 due to there being no demand from PLN. • Over 5,116 MWh of surplus electricity was sold in Bengkulu in 2024, which was 38.2% lower and generated $216.3 thousand in revenue (2023: $350.0 thousand). Lower power supply to National Grid in year 2024 due to less demand from PLN effective from June 2024 as they are getting power from other IPP using diesel gen-sets installed in their National Grid station. • SGM mill for 2024 was lower by 11.6% (7,478 MWh) compared to year 2023 (8,455 MWh). The revenue generated was $333.6 thousand in 2024, 11% lower than 2023. The drop in power supply was due to several factors such as fallen trees along the transmission lines, downtime of gas engine and failure of electrical components. There is an additional of power demand from PLN of 1 MW. We have transferred the second engine from Bengkulu to SGM Mill to cater the requirement. All the installations have been done and the second gas engine have been commissioned effective first quarter of 2025. ESTATE DEVELOPMENT In 2024, our Group cleared 0.6 thousand ha of land, including the smallholder cooperative scheme (“Plasma”), for new planting and replanted 1.7 thousand ha of oil palm, primarily in Bengkulu and North Sumatra. The 2024 plantings utilised new-generation planting materials. For many years, dura palms formed a significant portion of the planted areas in North Sumatera and Bengkulu. Fruits from dura palms have thin mesocarp which ultimately produce less oil. Around 10.0 thousand ha of palm has been designated for replanting in the next 5 years due to poor yield, as well as their advanced age. Seedlings are sourced from reputable suppliers to ensure only quality Tenera palms are cultivated, in order to significantly increasing productivity and land use efficiency. This is especially important considering that the oil palm is a perennial crop with a 25-year economic lifespan. Our total planted area including Plasma is 69.4 thousand ha by the end of 2024. In 2025, our Group plans to replant 2.6 thousand ha of oil palm in North Sumatra and Bengkulu, along with the new planting of 0.3 thousand ha in Kalimantan and Bangka to support sustainable growth and productivity improvements. Clearing land for new planting is a complex process requiring written approval from local authorities, submission of Environmental Impact Assessments (“EIA”), and engagement with local communities. All new plantings strictly follow the High Carbon Stock Approach guidelines and are verified by accredited consultants. Last year, our Group invested $0.9 million to modernise old workers’ quarters in North Sumatra and Bengkulu. For 2025, an additional $0.9 million has been budgeted for further renovations and refurbishments to enhance worker accommodation. To accelerate electrification in remote plantation locations, our Group spent $0.8 million in 2024 to connect 953 houses with electricity. In 2025, $0.8 million is allocated to provide electricity to over 2,196 homes. 60 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) To improve transportation and the delivery of FFB in our plantations, our Group purchased 10 units of dump trucks at a cost of $0.3 million in 2024, with an additional $0.3 million allocated for similar purchases in 2025. This initiative addresses rising logistics costs, as independent transport companies (especially in Kalimantan and Bengkulu) often prioritise coal transport due to better rates, leading to insufficient trucking availability for our harvest. Furthermore, our Group invested $3.9 million in 2024 to improve field roads and connectivity between estates and mills by constructing new bridges. An additional $4.9 million is budgeted for 2025 to continue enhancing and maintaining our road network for improved connectivity. MILL AND BIOGAS DEVELOPMENT We have completed the EIA for our eighth mill, namely the KAP mill, located in Kalimantan Tengah. This mill will enable the KAP estate to process its own FFB as well as FFB from surrounding smallholders, reducing transport costs, ensuring timely processing, and offering better control and higher profitability. Significant earthwork will be required to level the hilly terrain with deep ravines at the KAP estate, as site options for the mill are limited. The planned mill, with an estimated cost of $15.1 million, is designed to have a capacity of 45 mt/hr. Two of our mills, the SGM mill and the HPP mill, which currently rely on river barges to transport their CPO, have been directed by government authorities to construct their own jetties. At present, both mills use government- owned jetties, which are designated for public use and only available on a temporary basis. Jetties are essential for connecting the shore to deep water, allowing river barges to dock and facilitate the loading of CPO. To comply with these requirements, our Group has acquired land adjacent to the rivers for the construction of two jetties in 2024, with an estimated investment of $1.5 million. In 2024, our SGM mill underwent significant enhancements to ensure smooth milling operations with minimal disruptions. The steriliser station was upgraded with two new vertical sterilisers, equipped with FFB feeding and discharge conveyors, at a cost of $0.6 million, complementing the existing 4 units. Furthermore, an additional oil storage tank with a capacity of 4.0 thousand mt was installed at a cost of $0.25 million, raising the total storage capacity to 19.0 thousand mt. These upgrades ensure sufficient storage in case of delays in tanker ship collections caused by adverse weather conditions. At the BPJ Mill, two outdated vertical sterilisers/ pressure vessels were replaced with improved designs, alongside steam nozzle modifications on two existing units to enhance steam penetration. The total cost for these upgrades was approximately $0.3 million. Additionally, at the Alno Agro Utama Mill, two old sterilisers were replaced at a cost of $0.2 million. In 2024, our MPM mill underwent extensive repairs and upgrades. Corroded roofings were replaced at a cost of $0.25 million, and $0.2 million was spent on reconstructing a hill slope next to the mill, which had been damaged by a landslide during heavy rainfall. Further improvements included replacing two horizontal sterilisers at a cost of $0.3 million. Another boiler was refurbished and upgraded with the addition of superheaters to enhance performance, at a cost of $0.1 million, with work completed in the second quarter of 2024. Our Group invested $3.9 million in 2024 to improve field roads and connectivity between estates and mills by constructing new bridges.” 61 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Despite operational challenges in its oil recovery system since 2023, the MPM mill has taken steps to address the issue. Frequent choking in the membrane system, despite effective solids removal by the decanter, hindered its full functionality. To resolve this, two high-speed separators were commissioned in July 2024, and are expected to significantly improving the system’s performance. Finally, at our Tasik Raja Mill, the railway tracks and marshalling system for cages were upgraded at a cost of $0.1 million in 2024. Additionally, a new boiler with superheaters and a capacity of 45.0 thousand kg/hr was installed at an estimated cost of $1.2 million, with completion expected in the second quarter of 2025. We plan to upgrade the Tasik biogas plant with BioCNG production. The work is ongoing and we have received approvals from the relevant authorities. COMMODITY PRICES CPO Price 2024 vs 2023 $/MT Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 CPO prices in 2024 experienced an upward trend, reversing the downward trajectory observed in 2023. Starting at $969/mt in January, it gradually increased month by month, hitting $1,301/mt in December. Ex-Rotterdam price averaged at $1,096/mt for the year, 13% higher than last year. Our average ex-mill price for 2024 was at $794/mt, 10% higher than last year of $721/mt. Ex-mill prices are lower than ex-Rotterdam prices due to logistic, insurance costs, Indonesian levies, and taxes. The ongoing conflicts particularly in Ukraine and the Middle East and escalating trade wars, together with rising inflation have created economic uncertainties which have impacted heavily on the global economy. The growing weakness in the global economy, along with an oversupply of competing vegetable oils and strong demand for soybeans from China, presents significant challenges for the palm oil industry. The recent shift in the American presidency has raised concerns about escalating trade tensions with the United States, complicating market dynamics further. This oversupply of alternatives drives prices down, making it difficult for palm oil to maintain its market share. 2024 2023 62 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) In 2024, Ukrainian producers continued to expand their sales and exports of sunflower oil, with the EU remaining the primary market despite persistent conflicts, geopolitical uncertainties, and logistical challenges. In Europe, sunflower oil demand was driven by increasing consumer demand for competitive options, sustainable agriculture practices, and advancements in oil extraction technologies. Meanwhile, shifts in Brazil’s agricultural sector were evident as soybean oil prices remained lower than palm oil, influenced by substantial stockpiles in China and an increase in imports of inexpensive soybeans. These factors affected the price growth for palm oil. Like other commodities, the prices of competing soft oil relative to CPO price is a key to demand. With the abundance and affordability of soft oils, the CPO discount to sunflower and soyabean have narrowed significantly and therefore CPO has lost its attractiveness particularly for markets that are sensitive to prices. Over a period of 10 years, CPO price has touched a monthly average low of 472/mt in November 2018 and a monthly average high of $1,857/mt in March 2022. The monthly average price of CPO from 2015 to 2024 was about $856/mt. CPO CIF Rotterdam – 10-Years Price Trend $/MT 2,500 2,000 1,500 1,000 500 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: S&P Global 63 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility (“CSR”) is an integral part of corporate self-regulation incorporated into our business model. Law 40/2007 of the Indonesian Limited Liability Companies Article 1 Paragraph 3 defines corporate social and environmental responsibility as the company’s commitment to participate in sustainable economic development to enhance the quality of life and environment to benefit the company, local communities, and the general public. AEP embraces this responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders, and all other members of the public sphere. Our Group sustainability policy and commitment to no deforestation and development on peat land, no open burning, no exploitation, no forced or child labour, and other best management practices can be downloaded from the website under Corporate Governance. Our Group also released a statement on the UK Modern Slavery Act 2015 which was published on the website under the same section. The majority of employees and their dependents in the plantations and mills are housed in self- contained communities built by the Group. The employees and their dependents are provided with free housing, clean water, and electricity. Provide places of worship for workers of different religious faiths Our Group also builds, provides and repairs places of worship for workers of different religious faiths as well as schools and sports facilities in these communities. Over the years, our Group has built a total of 79 mosques and 20 churches across its estates. During the fasting month, the management team frequently broke fast with the employees from the estates and mills as well as with surrounding villagers. Our Group has also sponsored and made donations to celebrate religious festivals. Our Group spent $0.4 million (2023: $0.2 million) in 2024 to maintain these amenities and to support the communal activities. Offer free education for all employees’ children in the local plantations Our Group provides free education for all employees’ children in the local plantations and communities where they work. In addition, our Group provides computers and funding to construct educational facilities including laboratories and libraries. The salaries of teachers in the estates and the cost of buying and running the school buses to transport employees’ children are provided by our Group. Over the years a total of 34 schools, which comprised of 18 pre-schools, 10 primary schools, 5 secondary and one high school were built. Some 90% of the enrolment are our employees’ children while the balance is from the local communities. AEP currently employs 129 full time teachers and operates 48 school bus. Our Group spent some $1.1 million (2023: $1.2 million) in running the schools and operating the buses in 2024. Our Group spent some $1.1 million (2023: $1.2 million) in running the schools and operating the buses in 2024. Give scholarships to qualified students As part of our Group’s contribution to education, we provide scholarships to qualified students from the communities as well as our employees’ children to pursue tertiary education. 40 of our employees were sponsored to study in various universities in Indonesia up to 2024 at a cost of $0.2 million since its inception in 1999. The popular courses range from Engineering, Education, Economics to Agriculture. 70 of these children have successfully graduated from the universities with a number of them now working for our Group. In 2024, our Group engaged the local electricity authority to supply electricity to 953 homes of our employees in Bengkulu and Riau. They do not have to rely on generators which limit the hours of operation. In 2024, our Group engaged the local electricity authority to supply electricity to 953 homes of our employees in Bengkulu and Riau. 64 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Provide free comprehensive health care Our Group continues to provide free comprehensive health care for all its workers. We have established 23 clinics of which 19 are still operated by our Group with qualified doctors, nurses, and hospital assistants in the estates. Our Group had in the previous year upgraded two of its clinics in North Sumatera and Bengkulu to meet the minimum standard required by the government under the country’s Health and Social Security Agency. The upgraded clinics also provide health care services to the surrounding community without the need to travel to faraway cities for medical treatment. Our Group also operates 15 ambulances to support emergency transportation needs within the estates, mills, and surrounding villages. In addition, our Group organised fogging to prevent the spread of dengue mosquitoes. In remote and isolated locations, where piped water is not available, water is generally pumped from underground or rivers sources. Reverse osmosis water facilities are progressively installed in all estates for distribution of clean drinking water to workers. Related healthcare expenses for full and part-time field workers including monthly contributions to Health and Social Security Agency in 2024 were $1.3 (2023: $1.8 million). the years, one employee was promoted to General Manager level with another 31 persons being employed in various senior positions in the head office, plantations and mills. Separately, our Group also sends security personnel regularly to training facilities organised by the Police to be certified. Our Group frequently hired professional trainers to conduct leadership development training courses to upskill managers at the estates and mills. Our Group also recognises its obligations to the wider farming communities in which it operates. The Indonesian authorities have established that not less than 20% of the newly planted areas acquired from 2007 onwards are to be reserved for the benefit of the smallholder cooperative scheme, known as Plasma. These smallholder developments are integrated alongside its estates. The Plasma development has commenced in stages for its estates in Sumatera, Bangka, and Kalimantan. Out of the 6,899 ha plasma commitment, our Group has planted oil palm in 5,563 ha. In 2024 our Group received 44,962 mt of FFB from Plasma schemes compared to 48,700 mt in the previous year. Total revenue generated by Plasma cooperatives was $7.8 million in 2024 against $6.8 million in 2023. We have established 23 clinics of which 19 are still operated by our Group with qualified doctors, nurses, and hospital assistants in the estates. Offer employees the opportunity to attend seminars and external trainings AEP realises that employees are valuable assets to run an efficient, effective, profitable and sustainable business and operations. Selected employees were given the opportunity to attend seminars and external training to enhance their working skills and capabilities. Our Group constantly recruits potential field employees who are sent to the Group’s central training facilities in Blankahan, set up in 2014, to undergo a rigorous 12-month training programme which includes theory and practical fieldwork. A total of 584 employees have participated in the programme since its inception in 1993 with 35% of participants still working for the Group. Over Total revenue generated by Plasma cooperatives was $7.8 million in 2024 against $6.8 million in 2023. Corporate guarantees provided to Plasma scheme cooperatives To aid the development of Plasma schemes, our Group provided corporate guarantees of over $0.55 million through its subsidiaries to local banks to cover loans raised by the cooperatives. Our Group also assisted the cooperatives to obtain the proper land rights certification from the local land office. Our Group has also participated in government social and partnership programmes for farmers and smallholders when it renewed cultivation rights. These programmes include providing financial support to farmers to cover agricultural and planting materials and equipment on top 65 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) of training and education on good plantation practices to improve smallholders’ productivity and output. The partnership also assists farmers to obtain proper permits from relevant government authorities and regencies to plant. We also help them to obtain legal land titles so that the smallholders can eventually apply for Indonesian Sustainable Palm Oil (“ISPO”) sustainable certification. Our Group supported the Kas Desa smallholder village development programme to supplement the livelihood of the villages. Our Group has to-date financed, developed and managed 22 smallholder village schemes of oil palm across four companies. This programme allows the participants to opt out to self-manage. 5 smallholders had successfully exited from the programme since 2022 till 2024. Help develop infrastructure In addition, AEP also develops infrastructure such as the construction and repair of bridges and maintained over 215 km of external roads in 2024 at a cost of $2.1 million (2023: $3.6 million). Our Group also provided initial aid and seed capital to villagers such as fruit seedlings, fish fry, cattle and ducks to start community sustainable programmes. Our Group leased 8 ha of land just outside Kuala Lumpur, Malaysia and started to clear the land from 2020 to build greenhouses for organic farming. It aims to produce organic vegetables and fruits in an environmentally sustainable manner and make them available to consumers at affordable prices as part of its corporate social responsibility. Substantial part of the produce is donated to orphanages and retirement homes. Social Forestry Programme Recognising the importance of the No Deforestation, No Peat, and No Exploitation (“NDPE”) commitments to our stake holders, AEP incorporated these principles into its Sustainability Policy, published on 15 June 2019: Since 31 December 2015, AEP has been committed to identifying potential loss of HCS areas across its palm oil concessions in Indonesia. The analysis identified 967 ha requiring full recovery obligations to support environmental sustainability and benefit surrounding communities. No Deforestation: Prevents clearing of forests for agricultural development, protecting High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas. No Peat: Prohibits new developments on peatlands, which are critical for carbon storage, and promotes best management practices for existing plantations. No Exploitation: Safeguards the rights of workers, local communities, and smallholders, ensuring fair treatment, gender equality, and the prevention of child labour. 66 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) FOREST CONSERVATION, PROTECTION, AND SECURITY AEP, in collaboration with the Seluma Social Forestry team, assessed land cover at the Gapoktanhut Hutan Karya (community forests) site to guide area management. Forested areas with good cover have been designated as protected zones to prevent conversion into community gardens. Efforts include optimising existing gardens with agroforestry systems, rehabilitating critical lands with woody plants, and establishing agroforestry planting on open lands. Key activities under the initiative include: • Demarcating boundaries of social forestry areas. • Conserving forest ecosystems. • Conducting routine patrols to prevent encroachment, illegal wildlife hunting, and forest fires. These measures aim to balance environmental preservation with sustainable land use, creating a framework for long-term community and ecological benefits. Coffee cutting training In September 2024, AEP facilitated coffee-cutting training sessions aimed at enhancing the skills of forest farmer groups in the HKm Gapoktanhut Hutan Karya area. These sessions focused on enabling farmers to improve coffee yields and produce high-quality beans. Farmers in Sinar Pagi Village primarily grow Robusta coffee using traditional methods. However, aging coffee plants and the lack of a coffee-cutting system have led to declining production. While a ha of coffee plantation typically yields one to two tons of coffee, the output in Sinar Pagi Village has dropped to just 500kg–one ton per ha. To address this issue, AEP is gradually implementing a coffee-cutting system to boost production. Initial efforts include raising farmers’ awareness of the system’s benefits, encouraging its adoption, and steadily improving productivity. To further support this initiative, frequent visits were made to UKM Kopi Curup (small Additionality: Seluma Regency has the highest poverty rate in Bengkulu Province, with poverty pockets near areas rich in natural resources and biodiversity. Empowering rural communities through social forestry is expected to improve their standard of living, reduce poverty, and lessen pressure on protected forest areas. Long-Lasting Impact: The Recover Programme is implemented within the Social Forestry area, which grants communities legal access for 35 years, extendable thereafter. AEP is committed to supporting the programme for 25 years, fostering community independence and long- term forest conservation. Equitability: The programme is developed and implemented collaboratively, involving local communities, national NGOs, local government, and the Ministry of Environment and Forestry. Representatives from the Bengkulu Provincial Environment and Forestry Service have emphasised the need for broader support for these social forestry activities. Local communities have been actively consulted, and their consent has been obtained. Knowledge-Based Approach: Using the Theory of Change framework, the programme is based on a thorough analysis of current and expected conditions, threats, and contributing factors. It sets conservation targets and strategic approaches aimed at achieving sustainable outcomes. 01 02 03 04 To address HCS loss, AEP has provided compensation through support for social forestry programmes in Seluma Regency, Bengkulu Province. These initiatives cover approximately 1,072 ha in Sinar Pagi Village, North Seluma District. AEP’s recovery efforts focus on protecting and restoring ecological functions while addressing social and economic aspects by developing alternative livelihoods and establishing community-based business units. The recovery plan is built around 4 key principles: 67 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) and medium enterprises in Curup, Bengkulu - renowned for their coffee). Insights gained from these visits were applied to Sinar Pagi Village, broadening perspectives on production methods and comparing coffee farming practices across Bengkulu Province. Proper facilities and infrastructure to enhance coffee quality To enhance coffee quality, AEP has provided Coffee bean peeling machines to Sinar Pagi farmers with 54 coffee drying racks to support farmers interested in processing red-picked coffee. This has resulted in a higher market price than unripe coffee. As a result, several farmers have shown increased interest in producing red- picked coffee. LAND REHABILITATION THROUGH AGROFORESTRY AEP has launched a land rehabilitation programme in Sinar Pagi Village using an agroforestry system. This initiative involves the distribution of high-quality seeds of Avocado, Pete, Jengkol, and Durian, which serve as shade plants for coffee cultivation. These shade plants not only protect coffee plants but also provide ecological and economic benefits: • Ecological Benefits: Enhances soil and water conservation, promotes biodiversity, enriches nutrient content, increases carbon reserves, and reduces pests and diseases. • Economic Benefits: Improves production and quality while boosting overall community income. This integrated approach harmonises environmental sustainability with economic empowerment, ensuring lasting benefits for both ecosystems and local livelihoods. UTILISATION OF ENVIRONMENTAL SERVICES AEP has been actively developing environmental service activities within the social forestry area, including: • Ecotourism: Promoting nature-based tourism. • River Utilisation: Supporting the sustainable use of water resources. • Biodiversity Protection: Conserving plant and animal life. • Carbon Absorption and Storage: Contributing to climate change mitigation. • Environmental Recovery: Restoring natural areas. To enhance agricultural productivity, AEP has installed water pipes for improved irrigation, maximising rice production in local paddy fields. Further developments include a camping ground, coffee agroforestry educational ecotourism, and fruit gardens. These are all integrated into the AEP social forestry management plan. COMMUNITY EMPOWERMENT AND CORPORATE RESPONSIBILITY We have further empowered local communities by involving them as members of patrol teams to guard boundaries against illegal visitors and logging activities. This initiative strengthens community participation in safeguarding environmental resources. In line with Article 1 Paragraph 3 of the Companies Act, corporate social and environmental responsibility is defined as a company’s commitment to sustainable economic development, aimed at enhancing the quality of life and the environment to benefit the company, local communities, and the public. Our Group fully embraces this responsibility by addressing the impact of its activities on the environment, consumers, employees, communities, stakeholders, and the wider public. In engaging the social dimension of CSR, our Group acknowledges the importance of contributing to its employees’ enrichment while continuing efforts to improve the well-being of surrounding communities. SUSTAINABILITY POLICY AND COMMITMENTS AEP’s sustainability policy outlines its commitments to no deforestation, no development on peatlands, no open burning, no exploitation, and the prohibition of forced or child labour, among other best management practices. These policies reflect our Group’s dedication to responsible and ethical operations and can be accessed through the Corporate Governance section of our website. 68 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) RECOVERY OBLIGATIONS AND SUPPORT FOR SOCIAL FORESTRY AEP conducted an analysis to identify HCS area losses, aiming to determine its recovery obligations for presentation to the supply chain and other stakeholders. For the 967 ha of identified HCS loss in Bengkulu, our Group has committed to fulfilling recovery obligations by compensating through support for social forestry programs and activities in Seluma Regency, Bengkulu Province. These activities cover approximately 1,072 ha in Sinar Pagi Village, North Seluma District. In collaboration with village governments and Social Forestry Institution Management, our Group has pledged to develop long-term plans, co-management strategies, and annual activities aligned with applicable laws and regulations. A significant milestone was reached with the signing of a Collaborative Management Agreement with Sinar Pagi Village in January 2024. COMMITMENT TO SUCCESSFUL IMPLEMENTATION Acknowledging the immense effort required to ensure the success of these recovery initiatives, our Group remains steadfast in its commitment to engaging, interacting, and collaborating with various stakeholders. This collaborative approach is aimed at reaching a consensus and achieving meaningful outcomes in fulfilling our Group’s sustainability commitments. SUSTAINABLE PALM OIL CERTIFICATION The ISPO certification is legally mandatory for all plantations in Indonesia, while the Malaysian Sustainable Palm Oil (“MSPO”) certification is a requirement for our Group’s Malaysian plantations. In addition to complying with these certifications, our Group enforces zero deforestation, zero burning, and zero exploitation, as outlined in our Sustainability Policy. The ISPO scheme, designed to ensure that palm oil in Indonesia is produced in an environmentally and socially responsible manner, emphasises sustainable procedures, including preventing worker exploitation, reducing harmful chemical use, and applying proper pesticide techniques. To maintain certification, companies must undergo regular audits and verification. Our Group collaborates closely with certification bodies, ensuring compliance, and all 13 of our operating companies are ISPO-certified. Our Group has also initiated the process to obtain RSPO certification in 2024 and we expect our membership approval in 2025. This significant milestone reflects our commitment to adopting a globally recognised standard for certified sustainable palm oil. Achieving RSPO certification will strengthen transparency, reinforce stakeholder confidence, and underscore our dedication to environmental, social and economic sustainability. Our Group has also initiated the process to obtain RSPO certification in 2024. This significant milestone reflects our commitment to adopting a globally recognised standard for certified sustainable palm oil.” 69 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) STRENGTHENING SAFETY AND WORKPLACE PRACTICES To foster a strong safety culture, AEP organises workshops and training sessions on occupational safety and healthcare across all estates and mills. Employee development, well-being, and work- life balance remain top priorities. Employees are empowered to report Near-Miss incidents and provide feedback through standardised forms, enabling proactive identification of hazards and continuous improvement of safety practices. Any incident involving fatalities or serious injuries is rigorously investigated to identify root causes and implement corrective actions to prevent recurrence. Additionally, AEP compiles and reviews statistics on work-related accidents as part of our safety monitoring efforts. To meet safety and environmental standards such as International Sustainability and Carbon Certification, ISO 14001, and Program for Pollution Control Evaluation and Rating (“PROPER”), our Group continues to upgrade agricultural chemical stores and diesel fuel storage tanks across various plantations and mills. Every estate is also mandated under ISPO to have a fire team with fully trained personnel holding certification from fire departments. AEP conducts annual fire drills, constructs watchtowers in every estate, and uses drones to monitor fire outbreaks. Standard operating procedures have been refined and documented based on sustainable oil palm practices and in compliance with Indonesian regulations, specifically the Regulation of the Minister of Agriculture Number 05/PERMENTAN/ KB.410/1/2018 on plantation land management without burning. Internal audits, guided by checklists adapted from sustainable practices, are conducted to ensure operational compliance. These efforts strengthen AEP’s commitment to safety and environmental sustainability. ESG PRACTICES AEP believes that the responsible stewardship of our environment is critical in benefiting our consumers, employees, shareholders, and society in general, thus maintaining the industry’s long- term prospects. AEP has established a dedicated sustainability team based in the Medan Operations Office. The team is led by the Sustainability & Risk Management Controller and operates under the guidance of key leadership, including the Chief Corporate Planning & ESG Officer and other key management members. They oversee and implement strategies to achieve our Group’s ESG goals while managing sustainability risks effectively. In 2024, our Group further enhanced its governance framework by forming an ESG and Corporate Governance Committee. This committee, comprising the Executive Director, an Independent Director, and with key management members in attendance, convenes at least three times a year to discuss material issues and monitor the progress of ESG initiatives, ensuring alignment with our Group’s sustainability objectives. Our Board and key management maintain visibility and general awareness of climate and nature-related risks and opportunities. Plans, objectives, and targets related to these risks are discussed annually, or as needed, through engagement with external sustainability partners and management meetings where new or material issues are raised. Climate change and nature remain standing agenda items for the Board, underscoring their significance in our decision-making processes. THE BOARD • oversees reviews of our Group’s corporate governance policies and initiatives, including Sustainability Policy published in 2019 • monitors and reviews the progress against our sustainability-related targets on an annual basis 70 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Our Sustainability Policy aims to drive change needed in reducing environmental impact, delivering more efficient land use, ensuring social justice, and practicing responsible business across all operations. It embeds policies to mitigate key climate and nature-related risks. Our Group also participates in the SPOTT assessment by the Zoological Society London that uses publicly available information to annually assess palm oil producers on the transparency of their commitments to environmental, social and governmental best practice. Apart from aligning with the TCFD, we have also looked to adopt the recommendations of the Taskforce for Nature- related Financial Disclosures (“TNFD”) despite this not yet being a mandatory requirement. The palm oil industry has continuously received close scrutiny in the media due to concerns on global warming and rainforest destruction. Realising this, our Group has adopted a NDPE, and zero burning policy throughout our Group. Legume cover crops are planted to minimise soil erosion, preserve the soil moisture and improve soil chemical and physical properties, thus reducing the use of chemical fertilisers. In mature areas, fronds and EFB are neatly stacked on the inter-rows to allow for the slow release of organic nutrients while minimising soil erosion. Estates with sandy areas use soft grass, Nephrolepis biserrata ferns and cut fronds to cover bare ground to increase soil moisture and improve organic matter contents. Effluents discharged from our mills are fully treated in anaerobic lagoons and tanks to reduce its biological demand (“BOD”) Final discharge is applied to the estate’s land as fertilisers and BOD is tested regularly to ensure that it is below the legal limit for land application in Indonesia Felled palm trunks are chipped, shredded and left to decompose on the site Mitigates the release of greenhouse gases commonly associated with open burning through the traditional land- clearing method of slash-and-burn Chipping and shredding palm trunks enriches soil organic matter & recycles nutrients back onto the soil HOW FALLEN PALM TRUNKS RECYCLES NUTRIENTS BACK ONTO THE SOIL Where land is sloping, terraces are built which helps to prevent landslides and soil erosion, conserve the water and nutrients and provide better accessibility for operations. Conservation pits and sumps are also constructed to harvest and contain rainwater. AEP operates 4 biogas plants, which enhance the treatment of palm oil mill effluents while simultaneously mitigating GHG emissions. The captured biogas is utilised to generate electricity, which is supplied to the national grid, reducing reliance on fossil fuels. Alternatively, the biogas may be purified and compressed to produce BioCNG in plants such as the BioCNG plant in our Blankahan estate. Plans are underway to explore and implement similar biogas initiatives at other mills, focusing on locations where such projects are commercially viable. These efforts will be carried out in stages, further advancing our commitment to sustainability and renewable energy. AEP is committed to implementing good agricultural practices as spelt out in its standard operating procedures for all activities. An Integrated Pest Management system has been adopted to control the population of damaging pests and to improve biological balance while reducing dependency on chemical pesticides. Barn owls, which are natural predators, have 71 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) been introduced to control the rat population, replacing the use of rat baits. Beneficial plants such as Turnera subulata, Cassia cobanensis and Antigonon leptopus were planted to attract natural predators for biological control of bagworms and leaf-eating caterpillars. AEP minimises the use of toxic pesticides and herbicides, with plans to phase them out when viable alternatives are available. Employees are regularly trained in safe and proper spraying techniques, provided protective equipment, on-site washing facilities, and routine medical examinations. Chemicals are stored in designated areas and inspected regularly, with strict adherence to safety standards as per Indonesian regulations. Under the Manpower and Transmigration Ministerial Decree No. 08/2010, our Group strictly enforces compliance with occupational safety standards. Managers and employees risk penalties or disciplinary actions if found non-compliant, as safety audits are conducted periodically. Additionally, ISPO-certified companies are prohibited from using 36 banned pesticide ingredients, which are known to pose significant health risks to humans and harm the environment. Chemicals banned under WHO Class 1A and 1B, as well as the Stockholm and Rotterdam Conventions including highly toxic pesticides such as Paraquat, have been eliminated from our plantation. Safer alternatives are currently being evaluated. A standard operating procedure ensures the management is informed of any pesticide poisoning cases among applicators, reinforcing AEP’s commitment to safety and sustainability. To minimise accidents at workplaces, regular training and refresher courses are held to instil the importance of safe working practices. Warnings and reminders are displayed at the mills and estates to remind the workers on their safety. Warning signs are placed at strategic locations such as speed limits in housing estates and warning against crossing Irish bridges when river water is at a dangerous level. AEP continues to comply and preserve HCV as well as HCS areas recognised by the Department of Forestry. Every development has gone through the proper environmental impact analysis. EIA studies, environment management and monitoring efforts are retained under the Indonesia Omnibus Law passed in 2020, companies are however no longer required to obtain environmental license. All HCV and HCS areas were mapped with boundaries clearly marked by independent surveyors to ensure that our Group does not plant in these sensitive areas. Our Group patrols these protected areas to ensure no encroachment and maintain regular monitoring and management plans to preserve the flora and fauna of these sensitive areas. Natural vegetation on uncultivable lands such as deep peat, very steep areas and riparian zones along watercourses and mangroves are spared from planting in order to preserve biodiversity and wildlife corridors as well as to check erosion. Peatland is considered to be one of the most efficient carbon sinks and any burning or drying will release the sequestered carbon dioxide into the air contributing to global warming. Conservation of peatland is also important as it is at high fire risk, raising concerns of sub-terrain wildfires which is very difficult to put out. Peatland is made up of decomposed vegetation which not only holds carbon dioxide but also highly inflammable when dry. We have a strict no-peat policy and prohibit new planting in peat areas since 2019. In places like the HPP estate where palms were planted between 2006 to 2012 on peat, before the introduction of no-peat policy, 42 permanent water gates were installed to constantly monitor to keep surface of water stable. Degradation of the mangroves on the other hand causes coastal erosion and harm biodiversity and economic losses for communities that depend on them for a living. Progress has been made in recent years to step up environmental protection in Indonesia. In Indonesia where drought occurs regularly, an emergency response team is set up in every estate armed with the proper equipment and gear to put out fire and prevent them from spreading during the dry months. Regular training on fire- fighting techniques and safety is provided by the fire departments. Our estates have also invested in modern technology by utilising drones to pinpoint areas of fire outbreak whenever they are detected by the watchtowers. These drones are particularly useful in remote areas where accessibility is restricted. According to Indonesian Law No. 41/1999 on forestry, a deliberate act of forest burning could lead to 15 years imprisonment 72 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) and a fine of up to Rp5 billion or about $350,000, while negligence act that leads to a forest fire is punishable by a 5-year imprisonment and a fine of up to Rp1.5 billion or $105,000 for environmental crime. The government is stepping up its enforcement where large fines were imposed on companies for breach of environmental law. AEP upholds its commitment to a no open burning policy, ensuring it plays no part in such activities. All sacred and customary lands are set aside and also preserved by AEP out of respect for the local tribes and customs to pray and conduct their ritual ceremonies. Our 7 mills are operating in compliance with criteria set by PROPER overseen by the Indonesian Department of Environment. Many of the criteria set by PROPER are also part of the ISPO requirement. These mills are officially graded Blue and rated to adhere to the criteria set for the management of waste and compliance to environmental conservation over water resources, land development, air and sea pollution and dangerous toxic waste treatment which impact the environment. The certification of the seventh mill which has just commenced operation is currently under review. 6 mills are certified to ISO 14001:2015 (Environmental Management System) standard with the seventh in progress. Implementing an environmental management system can provide the mills, the ability to manage environmental performance through more efficient use of resources and will also increase the confidence of internal and external parties that the environmental impacts of its activities have been measured, managed and continuously improved. The ISCC is issued by ISCC System GmbH, a global certification body based in Cologne, Germany. The criteria used in the certification process are: • Implement social and ecological sustainability criteria • Monitor deforestation-free supply chains • Avoid conversion of biodiverse grassland • Calculate and reduce GHG Emissions • Establish traceability in global supply chains The Tasik Raja and United Kingdom Indonesia Plantation estates and mills were ISCC certified in 2024. The certification identifies a company as a responsible player in the industry that has taken efforts to produce sustainable CPO. We are currently progressing toward full traceability of external FFB purchased from suppliers’ farms or plantations to our mills. AEP is actively managing a comprehensive database of all our smallholders and aims to identify the precise locations of their plantations. By maintaining close relationships with our suppliers, we provide them with technical and management expertise while integrating our sustainability policies into their practices. This collaborative approach reinforces our commitment to responsible sourcing and sustainable operations. More details on our ESG efforts may be obtained from the Company’s website. PRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES AEP regularly evaluates its principal risks. Our Board, with support from Audit & Risk Management Committee and key management, reviews and assesses material issues related to principal risks annually. These assessments are integrated into strategic reviews and the overall decision-making process. Significant emerging business risks that are identified are brought up for discussion during regular key management meetings where the impact is assessed and mitigating actions agreed thereon. The key management, together with our Group Chief Executive Officer and Executive Director will in turn brief the Audit & Risk Management Committee and the Board as needed and during Directors’ meetings. In 2024, the risk category previously titled “Covid and Other Contagious Diseases” was renamed “Highly Contagious & Severe Diseases,” reflecting AEP’s commitment to early detection and mitigation, despite the diminished severity of Covid-19. Following the results of our Climate Scenario Assessment, the likelihood of “Weather and Natural Disasters” affecting AEP has been reassessed as Low. Similarly, “Information Technology Security” risk has been reevaluated in light of our improved infrastructure and is 73 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) now categorised as having a Low likelihood of occurrence but a Medium impact. “Country, regulatory and governance practices” has now been split into “Indonesia Regulatory Environment”, “International Regulatory Environment” and “Bribery and Corruption” to allow for more targeted focus on the distinct regulatory challenges. Additionally, “Produce Prices” has been renamed “CPO Price Decline,” which is now identified as having a medium likelihood of occurrence with a potentially high impact. This continues to represent the most significant risk to our Group. An annual reporting cadence is established for principal risks, enabling consistent monitoring of progress toward our objectives and targets. IMPACT ON AEP LIKELIHOOD OF OCCURRENCE LOW MEDIUM HIGH LOW MEDIUM HIGH π Bribery & Corruption ª CPO Price Decline (Most significant risk) ∏ International Regulatory Environment ∑ Indonesia Regulatory Environment ∫ Currency Exchange Rates ø Environmental & Conservation Practices æ Weather & Natural Disasters Ω Highly Contagious & Severe Diseases ¿ Information Technology Security º Social, Community & Human Rights Issues Key: ▲ Increase ▼ Decrease ◆ No change F New risk Risk Impact Mitigation ∑ Indonesia Regulatory Environment F Our operations are predominantly based in Indonesia, where the government may introduce new laws and regulations and pose challenges or create adverse effects on our business. Impact Medium Likelihood High Changes in Indonesia’s legal or regulatory framework, including foreign ownership requirements, could negatively impact our profitability. Restrictions on foreign ownership may limit operational flexibility and investment opportunities. Additionally, regulatory changes could lead to lower pricing, higher taxation, or other unforeseen impacts. AEP’s long-standing presence in Indonesia, spanning 4 decades, has allowed us to navigate various regulatory and political changes while benefiting from the country’s political stability and economic growth. While adjustments to laws and regulations are inevitable, we closely monitor these developments and adjust our strategy to suit. 74 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk Impact Mitigation ∏ International Regulatory Environment F International laws and regulations, if introduced, could present challenges or adverse effects on our business operations, potentially impacting compliance requirements, trade practices, and profitability. Impact Medium Likelihood Medium International regulations, such as import controls, export taxes, and trade barriers like the EUDR, pose risks to Indonesian planters like us by increasing costs, limiting market access, and requiring compliance with strict sustainability standards. These measures influence operational practices, encouraging the adoption of certifications like RSPO, while adding financial and logistical challenges. Although such regulations promote sustainability, they also impact competitiveness and profitability for palm oil producers. Emerging international regulations introduce complexities to market access and trade dynamics. In response, we actively monitor regulatory changes and adjust our practices to ensure compliance, protect market access, and maintain competitiveness in an increasingly demanding global landscape. Furthermore, we are progressively adopting internationally recognised sustainability standards, including RSPO and other certifications, to underscore our commitment to ethical and responsible production. These initiatives enhance our credibility and align our operations with evolving global expectations. π Bribery & Corruption F Our operation in Indonesia is considered high risk of bribery and corruption according to the International Transparency Corruption Perceptions index. Impact Medium Likelihood Low We face reputational damage, and criminal sanctions should we not be able to meet the standards expected to combat bribery and corruption. To mitigate bribery and corruption risks, our Group has implemented a strict anti- corruption policy, ensuring zero tolerance toward unethical practices. Regular internal audits are conducted to monitor compliance and detect irregularities, enhancing oversight and accountability. Additionally, a whistleblowing mechanism is in place to encourage employees and stakeholders to report unethical behaviour confidentially and without fear of retaliation. Furthermore, AEP actively promotes a culture of integrity and ethical business practices across all levels of the organisation. 75 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk Impact Mitigation ∫ Currency Exchange Rates Our reporting currency, as well as the CPO commodity price, is denominated in US Dollars. Our operations, however, utilise a combination of US Dollars and Indonesian Rupiah. Key expenses, such as fertilisers, fuel, heavy machinery, and mill equipment, are tied to the US Dollar. Impact Medium u Likelihood High u Adverse movements in the Indonesian Rupiah against the US Dollar can escalate operating costs, negatively impacting profitability and increasing funding expenses. Furthermore, fluctuations in the exchange rate may affect portions of our cash reserves held in Indonesian Rupiah, adding additional financial pressure. Our Board acknowledges that these currency risks are inherent to the business operations. To mitigate the impact of rate fluctuations, a portion of our Indonesian Rupiah reserves has been converted to US Dollars. This approach helps reduce exposure to currency volatility while maintaining a balanced financial strategy. ª CPO Price Decline CPO, being a key commodity, is influenced by the global economy, inflation, and the competition of alternative oils like soybean, rapeseed, and sunflower oil. Impact High u Likelihood Medium t Our profitability and cash flow depend upon the selling prices of CPO and upon our ability to sell CPO and palm by-products at price levels comparable with world prices. The global demand for CPO remains robust, driven by its widespread applications in food products, cosmetics, and biofuels, with growing consumption bolstering price stability. Environmental constraints on land availability further restrict significant increases in CPO supply. Indonesia’s biodiesel use is increasing, supported by its B40 biodiesel mandate which enhances domestic CPO demand, absorbing excess supply, stabilising prices, and reducing export dependence. Together, these factors help moderate price volatility and support the resilience of the palm oil industry. 76 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk Impact Mitigation º Social, Community & Human Rights Issues Our relationship with the local population near our operations is crucial to our business success. AEP employs a large workforce, contributing significantly to the economic well-being of the surrounding communities. However, disputes may occasionally arise with the indigenous community for example, over land compensation or land rights issues. Impact Medium u Likelihood High u Material breakdown in relations would cause disruption in the operation and consequently financial loss. We may suffer loss in local workforce or lose access to parts of our plantation or mill due to blockages and illegal encroachment by the local communities. AEP mitigates risks by engaging with village representatives to resolve disputes and fostering strong community relationships. Our Group prioritises local employment, supports farmers and tradesmen, and significantly invests in facilities and infrastructure, including schools, clinics, roads, and bridges, to benefit the community. Additionally, it helps villagers develop oil palm plots via its Plasma schemes, and also aids their livelihood via Social Forestry projects, thereby enhancing overall welfare. Ω Highly Contagious & Severe Diseases Contagious and severe diseases of pandemic proportions, such as Covid-19, have the potential to significantly disrupt our operations. Impact Medium u Likelihood High u The associated lock downs, labour shortages, operational inefficiencies, supply chain delays, increased health and safety costs, and market volatility, may which negatively impact productivity, profitability, and community livelihoods Mitigating factors such as comprehensive standard operating procedures, heightened awareness and preparedness stemming from lessons learned during Covid-19, and robust cash reserves designed to sustain our Company for at least 12 months provide critical resilience against disruptions caused by pandemics and other crises. æ Weather & Natural Disasters Oil palms rely on stable weather conditions, including regular sunshine and rainfall. However, our operations may be vulnerable to extreme weather events, such as prolonged droughts, excessive rainfall leading to floods, and natural disasters, like earthquakes. Impact High u Likelihood Medium t Dry periods can reduce yields, cause moisture stress, and trigger wildfires, damaging plantations. Excessive rainfall disrupts operations, delays harvesting, and raises Free Fatty Acid levels in CPO, leading to discounted sales. Natural disasters can damage plantations or mills, create labour shortages, and halt operations, with tsunamis and earthquake potentially wiping out plantation land and causing significant losses. Mitigating measures include bunding, platforming, and ensuring adequate drainage around flood-prone areas, alongside fire watch towers, satellite imaging, and other early warning systems to reduce risks from extreme weather and disasters. Additionally, our analysis shows that our operations are in areas without a history of severe drought, flooding, or natural disasters. To further bolster operational resilience, we maintain robust cash reserves to sustain the business during challenging periods. 77 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk Impact Mitigation ø Environmental & Conservation Practices Failure to comply and observe environmental and conservation practices in its oil palm cultivation. Impact Medium u Likelihood High u Reputational and financial damage through criticisms by conservation groups and boycott of the Group’s produces. Government could impose hefty fine and penalties for environmental breach. We are committed to sustainable development, maintaining substantial conservation reserves to protect biodiversity. AEP has achieved ISPO and MSPO certifications across all operations. Independent environmental impact assessments are conducted for plantation and mill development. Additionally, we collaborate with sustainability partners and experts to address climate-related risks and ensure compliance. ¿ Information Technology (“IT”) Security The security threats faced by our Group include threats to its IT infrastructure, unlawful attempts to gain access to classified information and potential for business disruptions associated with IT failures. Impact Medium s Likelihood Low t Failure to combat cyberattack could cause disruption to our business operations. Potential loss including loss of financial records leading to error or misstatement in financial statements. Recovery of lost data can also be expensive. To mitigate cybersecurity risks by maintaining a secure digital environment, including implementing robust IT security policies and procedures, conducting regular employee training on cybersecurity awareness, and ensuring timely updates of software, security patches, and systems. We employ advanced tools such as firewalls and intrusion detection/ prevention systems (IDS/IPS) to safeguard our networks and data. 78 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) CLIMATE AND NATURE-RELATED RISKS AND OPPORTUNITIES AEP is committed to creating a sustainable future for all its stakeholders - its employees, shareholders, investors and communities. It is on a journey of self-improvement on both the TCFD and TNFD frameworks, having identified through previous consultant, gaps to improve its climate and nature disclosure maturity. Our Climate/Nature Disclosure Roadmap: 1 2 3 4 5 6 7 8 9 10 EXPLORE • Information resourcing, upskilling, data gathering STRATEGY • High level strategy staged sustainability/ climate actions. Establish GHG emission reduction targets RISK AND OPPORTUNITY ASSESSMENT • Physical and transition, including timeframes (Short, Medium, Long) • Develop and apply materiality assessment • Integrate climate/nature and risk ENGAGE • Internal collaboration, address resource gaps DEVELOPMENT OF FRAMEWORK • Align 4 pillars – Governance, Strategy, Risk Management and Metrics and Targets SCENARIO ANALYSIS • Identify scenarios and assess impact of climate-related risks and opportunities DEEP DIVE KEY PERILS • Detailed study of impacts of high-risk locations FINANCIAL IMPACT ANALYSIS • Quantification of physical and transition risks and opportunities • Understand impact on key assets indirect on business operations REPORTING • Draft report aligning with regulatory requirements TCFD • Voluntary TCFD disclosures • Prepare to transit to ISSB • Report progress on GHG emissions REVIEW AND REFINE • Review process and learnings • Feedback from internal and external stakeholders • Regular updates and benchmark against sector • Continuous improvements 79 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) AEP’s priority in 2024 was to strengthen its governance framework to enhance its foundation for ESG and sustainability actions and progress towards its goals. We have strongly focussed on Governance actions in 2024 whilst improving actions on Strategy and Risk Management aspects. Both our Board and management have been engaged in the process and committed to the actions initiated. We recognise that nature is core to our business and closely interlinked with climate, in terms of our impacts, dependencies, risks and opportunities. This is our fifth year disclosing against the eleven TCFD recommendations. Following the TCFD gap analysis we conducted in previous years, we have continued to improve our alignment with TCFD’s recommendations by acting in accordance with the TCFD roadmap we have put in place last year. We have revisited our climate and nature-related risks and opportunities, incorporating findings from our scenario analysis in line with TCFD expectations. This scenario analysis explores how strategically- important climate and nature risks and opportunities may change across short, medium and long-term time horizons within distinctive and plausible scenarios (including a Paris Agreement Aligned scenario which limits global warming to 1.5C by the end of the century). We are also in the process of aligning our climate and nature risk management to the TNFD by explicitly considering nature risk alongside climate risk, and by adopting elements of the TNFD’s recommended scenario analysis methodology – using a ‘What If’ process to build out our scenarios to consider how climate and nature risks might manifest. We will further develop our holistic approach to risk management which integrates climate and nature in the future. AEP’s priority in 2024 is to strengthen its governance framework to enhance its foundation for ESG and sustainability actions and progress towards its goals. We are strongly focussed on Governance actions in 2024 whilst improving actions on Strategy and Risk Management aspects.” 80 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) SUMMARY TCFD ALIGNMENT TABLE Assessment Remarks and reference page Governance Describe the board’s oversight of climate- related risks and opportunities Board has oversight which have been enhanced in 2024. Page 82: Board Oversight Describe management’s role in assessing and managing climate-related risks and opportunities Management has responsibilities and resources which were enhanced in 2024. Page 84: Management’s Role Strategy Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term CSA identifying risks and opportunities across short medium and long term. We intend to continue to assess these risks and opportunities at more in depth and locational level. Page 84: Material climate and nature- related risks and opportunities Describe the impact on the business of climate-related risks and opportunities on the organisation’s business, strategy and financial planning To date our analysis have enable AEP to understand the potential impacts. We intend to broaden the assessment further in 2025 to understand further impacts on the business. Page 95: Impact on business, strategy and financial planning Describe the resilience of the organisation’s strategy, taking into consideration different scenarios, including a 2 °C or lower climate scenario We have considered the potential impacts from climate and nature from different scenarios and time horizons and resiliency of strategy against the risks. Page 96: Resilience of our Strategy Risk Management Describe the organisation’s processes for identifying and assessing climate-related risk AEP has implemented a process for identifying assessing prioritising and managing climate and nature risks. The process is now enhanced with the establishment of an ESG committee and dedicated ESG resources. Page 97: Identifying and assessing climate and nature-related risks Describe the organisation’s process for managing climate-related risks The Process is described in page 97: Managing dependencies, impacts, risks and opportunities 81 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Assessment Remarks and reference page Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management Currently compliant however as AEP is intending to review and refresh its risk management practice and integrate climate and nature more deeply into the Company’s practice. Page 100: Integration of climate and nature into overall risk management Metrics & Targets Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process The metrics are disclosed in page 101 Metrics to assess climate and nature- related risks and opportunities. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and related risks AEP discloses Scopes 1,2 and 3. Page 105: Carbon Reporting – 2024 Results Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets Target disclosed in page 101: Targets for dependencies, impacts, risks and opportunities CURRENT AND FUTURE STEPS ON TCFD AND TNFD GOVERNANCE • Focus in 2024 has been to enhance governance to provide AEP with the necessary support to put climate and nature at its forefront. • AEP’s focus has been to enhance its compliance with current TCFD requirements (refer to AEP’s report 2023 outlining its self- assessment of compliance). Although not a requirement, AEP has also started adopting the TNFD framework with a view to enhancing its TNFD disclosures over time. • In 2024, AEP’s focus has been to enhance a number of key aspects of TCFD including governance and risk management while at the same time it is looking to take steps to prepare to transition to International Sustainability Standards Board (“ISSB”) ahead of new ISSB regulations coming into force. • Having given careful consideration to enhancing the maturity of AEP’s sustainability journey, AEP has made a considered decision to focus its attention to strengthen its governance. It believes that by enhancing its structure, this will enable our Company to put sustainability at the forefront, meeting the needs of its stakeholders including investors employees and communities. Board oversight • AEP Board has ultimate responsibility for oversight of AEP’s management of material business risks and opportunities including climate and nature related risks in its strategy, risks, budgets and capital expenditure. AEP Board has taken active steps to improve governance in a number of ways: i. Board upskilling – Our Board has enhanced training on Sustainability topics. In 2024, it has undertaken two upskilling sessions focussing on climate and nature risks and opportunities, and legal risks. These were undertaken through inviting external experts to attend and present at meetings both virtually and in-person. Two such training sessions were attended by members (virtual and in-person) together with key management staff including our Group CEO, Chief Corporate Planning & ESG Officer. 82 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Our intention is to continue Board upskilling on a regular basis at least twice a year and we plan to undertake joint workshops/discussions with management deep diving on specific climate scenario outcomes in 2025. ii. Changes to Board Committee Terms of Reference – In 2024, a number of changes to the Committee terms of reference were adopted. These changes reflect the significance and importance of the role of the board in its oversight of climate and nature related risks to its business. Our Board considers and approve AEP’s sustainability objectives and monitors and reviews progress against our sustainability targets annually including the emissions reduction targets set in 2021. We plan to increase the oversight of these targets by informing the Board on GHG emissions reduction progress at least two times a year. Our ESG & Corporate Governance Committees oversees reviews of the Group’s corporate governance policies and initiatives, including our Sustainability Policy which was published in 2019. Our Sustainability Policy aims to drive change needed in reducing environmental impact, delivering more efficient land use, ensuring social justice, and practicing responsible business across all operations. It embeds policies to mitigate key climate and nature-related risks. Our Group also participates in the SPOTT assessment by the ZSL that uses publicly available information to annually assess palm oil producers on transparency of commitments to environmental and best practice. Any material Sustainability and Climate issues are to be brought to the Board’s attention for approval after consideration by the newly established ESG & Corporate Governance committee. The Board will have access to other Sustainability reports and activities undertaken and reported to the ESG & Corporate Governance committee. Topics on Sustainability and Climate will be considered at board meetings, with a cadence for reporting topics being agreed for the year. The ESG & Corporate Governance committee meets at least three times a year and at each of these meetings, progress against objectives and targets are considered. The Board has adopted a new reporting template addressing climate/ nature related issues for consideration when making decisions. This initiative reflects the significance of climate and nature consideration in decision-making. Other important changes include escalation of environmentally significant events to the Board on identification of issues. iii. Establishment of a new ESG and Corporate Governance Committee – Recognising the importance of ESG to the business, the committee was established in January 2024 as ESG Committee and subsequently renamed ESG and Corporate Governance Committee. The Committee comprises two Directors and is currently supported by our Group CEO, Indonesian CEO and Chief Corporate Planning & ESG Officer. The Committee has overall responsibility for the oversight of the implementation of AEP’s ESG policy/ Sustainability and supporting AEP’s ongoing commitment to environmental stewardship, health and safety, CSR, corporate governance, and sustainability. The ESG and Corporate Governance committee will meet two times or more a year prior to Board meetings, with strategic items referred to the Board for approval. All other items may be endorsed or notified to the Board from the ESG and Corporate Governance committee. iv. Other committees - We have introduced several changes to our board sub- committees, including the Audit, Nomination, and Remunerations Committees. Updates to the terms of reference have been made to enhance the scope of oversight and clarify roles and relationships both with the Board and among the committees. 83 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) For instance, the Audit Committee has been renamed the Audit & Risk Management Committee to better reflect its expanded responsibilities. This includes strengthening its oversight of risk management and compliance, as well as ensuring the integration of ESG risks into our overall risk profile. The Nomination & Corporate Governance Committee has also been renamed as Nomination Committee to avoid overlapping responsibilities with the ESG and Corporate Governance Committee. Management’s role • In September 2024, AEP created a new role – Chief Corporate Planning & ESG Officer. This role reports to Group Chief Executive and is responsible for designing and implementing all aspects of the sustainable programme including: - climate and nature reporting - delivery of initiatives to improve environmental performance - resiliency of the business against climate and nature risks - progress towards reduction on emissions • Our Environment Health and Safety (“EHS”) and Sustainability Department aids our key management in addressing climate and nature-related risks by integrating ESG considerations into our risk management framework. It identifies and assesses risks such as climate change impacts, biodiversity loss, and resource scarcity, ensuring these are factored into strategic decision-making. • Our dedicated ESG team, comprising the Chief Corporate Planning & ESG Officer and the EHS and Sustainability Department, oversees the tracking of ESG-related projects and targets. The team collaborates with key management across various functions within our Group (including estates, mills, human resources, legal, and finance) to ensure alignment with our ESG objectives and to address sustainability issues within AEP. In addition to periodic reporting, prompt escalation of material matters to our ESG and Corporate Governance Committee and Board ensures all parties informed, maintaining transparency and accountability. We remain committed to accountability and continuously adapt our strategies to meet our goals, as we progress toward further integrating our climate and nature risk management approach with broader strategic risk management. STRATEGY Material climate and nature-related risks and opportunities • In 2023, AEP engaged external consultants to conduct a Climate Scenario Analysis (“CSA”) of strategically important climate and nature risks relevant to its business. This process entailed identifying a long list of climate- and nature-related risks under the Network for Greening the Financial System’s (“NGFS”) ‘Orderly’, ‘Disorderly’, and ‘Hot House’ scenarios in short, medium and long-term. • The CSA identified two transition and three physical climate and nature risks of strategic importance for further interrogation. • Transition risks to AEP emerge primarily from increasing expectations regarding climate and nature performance (from both regulators and customers) and non- compliance with those expectations. • Key climate-related physical risks to AEP were identified as drought, flood and temperature rise. Upon further investigation of these key physical risks using the World Wide Fund for Nature (“WWF”) and World Research Institute (“WRI”) data, no discernible trend in drought was projected for any of AEP’s sites through to 2050, and although projections suggest flood risk at AEP’s sites will increase slightly, AEP is already operating – without any significant disruption – within areas that are categorised as having high flood risk . However, the CSA showed the aggregated impact of temperatures rise has the potential to significantly impact palm yield in the long-term, particularly in the Disorderly and Hothouse scenarios, in which the potential financial impact on AEP is deemed high by 2050. 84 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) CLIMATE AND NATURE SCENARIO ANALYSIS FINDINGS Risk Impact Scenario Potential Exposure Description Short (2025) Medium (2030) Long (2050) Policy/ Regulation A wide range of climate and/or nature- related regulation has been adopted, is in consultation, or has been proposed in different jurisdictions around the world. While there is considerable uncertainty as to how future regulation will evolve, in scenarios that limit warming to 1.5C – and/or in which concern about nature/ biodiversity continues to grow – it is highly likely that expectations of palm growers will tighten. Potential impact: Increasing climate and nature regulation could increase compliance and reporting costs, require changes in growing practices and, if compliance is not achieved, limit market access. Orderly Low Moderate High An internationally- coordinated approach limits risk in the short- term but ever-increasing obligations across a range of sustainability criteria require continual investment in the medium and long- term. Disorderly Moderate Moderate High A lack of international coordination – particularly regarding the roll-out of regulation around deforestation – creates moderate risk even in the short-term. Different expectations and frameworks apply in different geographies and, with a lack of alignment between climate and nature policy, reporting, and compliance costs become very high in the long-term for companies seeking to access all markets. Hothouse Low Low Moderate This risk is low in the short- and medium- term as no new climate or nature-related regulation is introduced or enforced. Reporting and compliance costs are low, although expectations grow over time to voluntarily demonstrate climate/ nature resilience and an ability to provide secure supply. 85 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk Impact Scenario Potential Exposure Description Short (2025) Medium (2030) Long (2050) Changing Customer Requirements The palm sector’s prominence in debates about the drivers of tropical deforestation – and the adverse perception of palm oil as an environmentally- unfriendly product (particularly by European consumers) – has increased pressure on public- facing consumer- goods companies to demonstrate strong performance on climate and nature. Those companies are increasingly placing expectations on their suppliers to disclose and improve strategy and performance across a suite of sustainability issues and metrics. Potential Impact: Increasing customer expectations regarding climate and nature could increase administrative and reporting costs, require changes in growing practices, and impact sales. Orderly Low Moderate High This risk is low in short- term but escalates rapidly as leading fast-moving consumer goods companies push ever-more stringent demands down their supply chains – raising compliance costs and presenting the prospect of lost sales if demands are not met. Disorderly Low Moderate Moderate This risk is low in the short- and medium-term, although customers that are already pushing carbon and nature disclosure and performance improvement continue to do so. The percentage of sales at risk from ‘non-compliance’ is low, but sales are at risk from protectionism. In the long-term, additional uncertainty arises from volatile activism causing poorly predictable customer responses. Hothouse Low Low Moderate This risk is low in the short- and medium-term, although customers that are already pushing carbon and nature disclosure and performance improvement continue to do so. The percentage of sales at risk from ‘non-compliance’ is low, but sales are at risk from protectionism. In the long-term, additional uncertainty arises from volatile activism causing poorly predictable customer responses. 86 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk Impact Scenario Potential Exposure Description Short (2025) Medium (2030) Long (2050) Drought Our estates are located within regions that are categorised as having ‘low’ drought risk. However, our current models may underestimate associated risks with El Niño-induced droughts, and its potential frequency and intensity due to climate change. Potential Impact If climate change increases drought, conditions and/or water stress it will have a negative impact on yield and revenues. Orderly Low Low Low Our estates are located within regions that are categorised as having ‘low’ drought risk. Disorderly Low Low Moderate Due to uncertainty of El Niño, drought risk by 2050 has been increased to moderate within the Disorderly and Hot House scenarios. This has been informed by qualitative analysis, rather than financial modelling. Hothouse Low Low Moderate Flooding Heavy rainfall/flooding can disrupt operations, both on- and off-site. Potential Impact: If climate change increases the frequency and intensity of heavy rainfall/flooding events, it will negatively impact operational efficiencies and costs. Orderly Low Low Low With projections suggesting that flood risk at our sites will only increase slightly – even within the Hot House scenario – our analysis did not flag any significant risk over the timeframes considered (the risk to revenue arising from operational disruption was <1% in all scenarios across all time horizons). Disorderly Low Low Low Hothouse Low Low Low The aggregated impacts of climate change at different temperature thresholds Different studies assessing the combined impacts of climate change on the palm sector in Indonesia and Malaysia offer varying outcomes, ranging from positive to negative effects. However, the specific study we referenced is designed to explore uncertainty and highlights a predominantly negative impact. Potential impact: Palm yield may be negatively impacted as temperature thresholds are crossed. Orderly Low Moderate Moderate The findings indicate that AEP’s potential exposure to risks becomes significantly elevated, categorised as ‘high,’ by 2050 under the Disorderly – and particularly the Hothouse scenarios. Our exposure to physical climate risk will be lessened by effective societal action to address climate change. As well as reducing our own emissions, we will support and advocate for wider government and industry action on climate. Disorderly Low Moderate High Hothouse Low Moderate High 87 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Scenario notes Archetype Orderly Disorderly Hot House Temperature alignment (2100) ~1.5°C >2°C >4°C External Data Alignment RCP 2.6 (IPCC) Optimistic (WRI/WWF) Net Zero 2050 (NGFS) RCP 6.0 (IPCC) Current/Business as Usual (WRI/WWF) Delayed Transition (NGFS) RCP 8.5 (IPCC) Pessimistic (WRI/WWF) Summary Strong, sustained and internationally-coordinated action on climate results in net zero emissions being achieved globally by 2050. Nature rapidly emerges as a key issue for companies and governments alike through the 2020s. Climate and nature action is divergent across countries and sectors. Differing, and sometimes competing regulations, incentives and climate/ nature ‘solutions’ are embraced in different regions. Governments fail to build on current policies and action is insufficient to keep warming below 2°C by 2050. Progressive investors and companies attempt to drive continued action and activism becomes increasingly unpredictable and extreme. Associated ‘what if’ questions What if all current and proposed climate and nature regulation is adopted and scaled globally? What if customers demand best-practice on both climate and nature? What if a complex/ conflicting regulatory landscape emerges, with differing regional priorities and/or differing emphases on nature/climate? What if key customers impose differing demands on growers re:climate and nature? What if no new regulation is introduced to drive climate action and progress on nature stalls? How might customers – and other stakeholders – respond if governments backtrack? Timescale Short Term 0-2 year Aligned to risk management planning cycle 2023-2025 Medium Term 2-5 year Aligned to Near-Term Science-Based Target dates for many companies 2025-2030 Long Term 5-20 year Aligned to Net Zero Target dates for much of the world and to average economic life of an oil palm plant 2030-2050 88 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) • Key Climate related risks and mitigation approaches – The table below outlines key climate-related risks and our corresponding approaches. These insights have been carefully developed and incorporate findings from the CSA, ensuring a comprehensive and informed overview: risk opportunity Type Primary risk/ opportunity driver Rationale for inclusion as priority risk Management approach Policy & Legal Compliance with changing regulations Import tariffs and taxes and other import restrictions imposed by importing countries will affect the demand for CPO and its derivative products can encourage substitution by other vegetable oils. The ISPO certification, which requires producers to mitigate their environmental impacts, is legally mandatory for all plantations in Indonesia and therefore non-compliance presents a financial risk through fines. AEP is legally required to incorporate climate-related financial disclosures into annual reporting, in line with recommendations of the TCFD. AEP expects additional nature-related disclosures to become mandatory in the future, in line with recommendations of the TNFD. Other legislation aimed at achieving nature-positive outcomes is anticipated to increase as a result of COP15, such as the EU regulation on deforestation- free products, which seeks to encourage regeneration as well as halting deforestation. All of our Indonesian plantations are currently certified under ISPO. Our Malaysian plantation has also received the MSPO certification. Our mills in Tasik Raja and Blankahan have received the ISCC and we have obtained ISO 14001:2015 certification for all our mills to improve our PROPER rating. The mills are regularly audited for renewal of certification. Example, every one year for ISCC, three years for ISO 14001 and 4 years for ISPO. Our current list of sustainability certifications is available on our website. We are in the process of applying for a RSPO membership. We have completed LUCA on 7 companies and are implementing remediation/conservation projects. Our sustainability certifications are available on our website. In addition to pursuing certification, we are committed to advancing transparency by achieving full traceability of our FFB sources. This proactive measure ensures that we exceed our buyers’ expectations while reinforcing trust in our supply chain and aligning with the highest standards of sustainability and accountability. Increasing climate and nature regulation could increase compliance and reporting costs, require changes in growing practices and, if compliance is not achieved, limit market access. 89 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Type Primary risk/ opportunity driver Rationale for inclusion as priority risk Management approach Market & Reputation Changes in buyer preferences/ Difficulty accessing capital Negative perceptions about palm oil and its links to deforestation can affect market access/demand and possibly lead to changes in international legislation or regulations. Many large buyers and their investors have targets to source a certain % of palm oil from RSPO certified producers or producers with carbon reduction targets. The loss of a major customer through a lack of RSPO certification or Scope 1, 2 & 3 carbon targets may impact profitability. Access to capital, through banks and investors, is also increasingly tied to the ability to evidence the sustainability of palm oil products, with several large banks, investors and RSPO members. As tenders are performed on a weekly basis, we do not find ourselves overly reliant on a single customer. We ensure transparency in our palm oil production practices through annual disclosure to SPOTT and certification as detailed above. Rising customer expectations regarding climate and nature may lead to higher administrative and reporting costs, necessitate adjustments in growing practices, and potentially affect sales. To address this, we maintain regular communication with buyers and capital providers to understand and proactively anticipate their evolving expectations. Our financial position also currently negates the need for financing through bank loans. We have commissioned an external consultant to prepare a Sustainability Report for 2024, which will be published on our website once completed. 90 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Type Primary risk/ opportunity driver Rationale for inclusion as priority risk Management approach Market & Reputation Development of new products Palm oil can be used to produce a range of products, including low- carbon alternative fuels and materials. The development of new products can provide both reputational and financial opportunities, despite in many instances being expensive to produce. For example, increasing demand for biodiesel in markets such as China offers additional sources of revenue. However, policies in the EU to reduce and phase out the use of palm oil in biodiesel by 2030 means that this opportunity may be limited. We have signed long term contracts with an investor to construct purified/compressed biogas plants BioCNG. These plants will purify the biogas produced from the biogas plants in the mills to generate compressed biogas with a high methane content to be used to replace diesel in industrial use. BioCNG can also be used in trucks carrying FFB within our estates. This can provide a reputational benefit, increased operational resilience, and new revenue streams. Indonesia’s first commercial BioCNG plant at our Blankahan estate commenced operations in January 2024. We remain committed to exploring innovative projects which utilise palm by- products, including further BioCNG and Biogas plants. Technology Use of lower emission sources of energy POME is used as a feedstock in anaerobic digesters to produce biogas which contains about 60% methane. The biogas is purified and used as a fuel in biogas engines to generate electrical power which reduces our reliance on diesel. 4 of our mills are equipped with biogas plants to capture biogas and generate electricity for sale to the state authorities or for own consumption. This also reduces the purchase of diesel for our estates, as they are instead supplied power by the grid, therefore reducing our emissions. 91 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Type Primary risk/ opportunity driver Rationale for inclusion as priority risk Management approach Physical Heavy rainfall & flooding Excessive rainfall generally leads to poor pollination of palms and reduces the effectiveness of fertilisers. High levels of rainfall can also disrupt estate operations and result in harvesting delays with loss of FFB or deterioration in fruit quality. Where leading to a reduction in revenues, insurance cover may not be available or may be disproportionately expensive. Where appropriate, bunding is built around flood prone areas and canals/drainage/retention ponds and water gates are constructed and adapted to evacuate surplus water. Riparian reserves are also protected to mitigate flood risks. Where the land is undulating, we build terraces for planting which helps to prevent landslides, ensures that water runs off into groundwater stores, conserves nutrients effectively, and provides better accessibility for operations. Where practical, natural disasters are also covered by insurance policies. Flood risk is generally low based on scenario analysis conducted in 2023 and are not expected to cause serious disruption to our operations. Periods of more intense precipitation can also benefit AEP, by enabling the conservation of more water to mediate dry periods. Droughts Dry periods affect palm oil yields in the short and medium term through moisture stress and can result in wildfires that may damage the palms. Drought events are localised to our Kalimantan and Bangka estates, where long droughts (>three months) can affect soil quality and lead to a lower yield the following year (~10-15% decrease at most). Legume cover crops are planted to minimise soil erosion, preserve soil moisture and improve soil chemical and physical properties. In mature areas, fronds and EFB are placed inter-rows to allow the slow release of organic nutrients while minimising soil erosion. Conservation pits and sumps are constructed to harvest and contain rainwater, whilst the spreading of oil mill effluent in lines provides a water storage medium. ‘Terracing’ also ensures that water runs off into groundwater stores. We are also closely following developments of drought-resistant oil palm varieties. Risk of drought is also expected to be manageable based on scenario analysis conducted in 2023, but that the scenario did not take into account weather conditions that cause draught such as El Nino which emerged in June 2023, affecting our estates in both Indonesia and Malaysia. Lower rainfall provides opportunities, however, to repair and realign roads to improve the transport of crops. 92 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Type Primary risk/ opportunity driver Rationale for inclusion as priority risk Management approach Physical Aggregated impacts of temperature thresholds being reached Related to drought risk, temperature increase was identified as a key change factor which may moderate palm oil FFB yield. Evidence suggests that as temperatures increase and global warming surpasses temperature thresholds, aggregated factors relevant to climate change will have a significant impact on palm oil success and yield. AEP is managing its carbon emissions in order to reduce its contribution to climate change and therefore help to mitigate temperature increase globally. Fires During drought season the risk of fire is present at several estates, especially where neighbouring land is burnt for crop cultivation by locals. El Nino weather events can indirectly drive widespread forest fires and haze. The financial impact of fire damage is relatively low to our Group due to the diverse geographical spread of plantations. Fire response crews are stationed in each estate, with regular training on firefighting techniques and safety provided by local fire departments. Ditches and boundaries are created to prevent the spread of fire, whilst watch towers have been built in every estate to pinpoint outbreaks of fire as soon as smoke is detected. Our Group has also invested in drones to pinpoint outbreaks of fire where accessibility is restricted. Where practical, natural disasters are also covered by insurance policies. Pests & disease Rhinoceros beetle or Oryctes damage has been observed in areas of large- scale replanting, whilst plantations have previously been detrimentally impacted by stem rot. More extreme fluctuations in precipitation may drive increased damage from bagworms and leaf beetles. There is evidence that pollinating weevils, which help to pollinate palm trees, are showing smaller flight capabilities and pollinating less because of changing climatic conditions. Pest and disease events are localised, with early-warning provided by supervision and monitoring, and generally impact immature palms. Outbreaks are managed through biological controls, such as the planting of beneficial plants that host natural predators to divert bagworms from oil palms, and the introduction of barn owls to control rats. Individual estates have also been replanted with more resistant anti-Ganoderma material to reduce the threat of stem rot. A variety of planting materials are also being considered to provide variability and pollens, to mitigate changes to pollinating insects, and hand pollination can also be carried out where required. 93 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Type Primary risk/ opportunity driver Rationale for inclusion as priority risk Management approach Physical Sea Level Rise Sea level rise related to climate change may impact AEP’s plantation and milling locations, or logistics routes that are coastal or at sea level. The majority of AEP’s operations occur at locations inland and above sea level. Systemic Risk Systemic Disruption The TNFD has built upon the TCFD’s categorisation of risk by asking companies to consider systemic risk alongside physical and transition risk. It outlines two categories of nature-related systemic risk: Ecosystem stability risk: Risk of the destabilisation of a critical natural system, so it can no longer provide ecosystem services in the same manner as before. Financial stability risk: Risk that a materialisation and compounding of physical and/or transition risk leads to the destabilisation of an entire financial system. AEP examined this risk at a high level to better understand and gather evidence on whether/how systemic risks might manifest change over time. 94 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Impact on business, strategy, and financial planning • Strategic adjustments are implemented to mitigate disruptions, ensure resilience, and harness opportunities that support long-term growth and alignment with our sustainability goals. • Climate and nature-related risks and opportunities are being incorporated into our approach and planning process through the following key processes, enabling us to effectively adapt to climate and nature challenges: i. Scenario Analysis: Various scenarios are employed to assess potential future impacts of climate change, including extreme weather events, policy and regulatory changes, as well as shifts in market dynamics. ii. Risk Assessment: The impacts of key risks are assessed, including impact on our business, financial performance, cash flow, insurance premiums and capital expenditures to mitigate climate and nature-related impacts. iii. Sustainability Policy and Governance Strategy: Our operations are guided by our sustainability policies developed based on globally recognised frameworks and industry best practices, such as NDPE policies, to mitigate environmental risks and enhance market competitiveness. These efforts are supported by our dedicated ESG and Corporate Governance Committee and ESG team, who oversee climate and nature-related planning to effectively integrate risks and opportunities into our broader strategic goals. iv. Development of Metrics and Targets: Metrics and targets are systematically designed to measure and track progress toward climate and nature-related objectives. These metrics provide clear benchmarks for evaluating the effectiveness of initiatives and ensure alignment with broader strategic goals, fostering continuous improvement and accountability. v. Stakeholder Engagement: Collaboration with investors, regulators, non-profit organisations and local communities ensures that climate considerations are factored into long-term planning and operational decisions. 95 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Resilience of our Strategy Our scenario analysis has highlighted a strong degree of resilience in the immediate term. We are effectively managing drought and flood risks with plans to further enhance our CSA by 2026. Our strategic decision to pursue RSPO certification, combined with our commitment to ensuring palm oil supply traceability, positions us well to meet emerging regulatory requirements and evolving customer expectations. We recognise, however, that both regulatory and customer demands surrounding climate and nature are subject to rapid change. Furthermore, over extended timeframes, climate change presents potential challenges to yields, particularly in scenarios where societal action to mitigate its effects remains insufficient. As such, we remain dedicated to enhancing our climate and nature-related performance and regularly revisiting associated risks to safeguard our resilience. Sustainability is at the heart of our operations, reflected in our adoption of the NDPE policy. This policy underscores our unwavering commitment to sustainable practices by prioritising environmental preservation and social responsibility. We strictly oppose deforestation and new development on peatlands, safeguarding biodiversity and mitigating climate change, while promoting best management practices for existing peat areas. Furthermore, the policy reinforces our dedication to human rights, the protection of local communities through Free, Prior and Informed Consent (“FPIC”), the assurance of fair working conditions, and the inclusion of smallholders within our supply chain. Through adherence to NDPE principles, we aim to uphold transparency, accountability, and alignment with global sustainability standards. In addition to NDPE principles, we emphasise the identification and protection of HCV and HCS areas, further ensuring the preservation of biodiversity and critical ecosystems. We also strictly oppose child and forced labour across our operations and supply chains. Our agricultural practices reflect our focus on responsible land management. These include zero burning, integrated pest management, soil and water conservation, and biomass recycling. During replanting, felled palms are chipped, shredded, and left to decompose on-site. This process eliminates greenhouse gas emissions typically associated with burning, while simultaneously enriching soil organic matter and recycling nutrients. Our Sustainability Policy (available on our website) provides additional information on the commitments we have made which will reduce the likelihood and/or impact in some of our key risk areas. To enforce our policy, we employ comprehensive strategies, including: • Regular monitoring and audits • Training and awareness programme • Collaboration with communities and value chain partners • Thorough documentation and verification processes • Whistle-blowing and grievance mechanisms As we continue to implement additional actions to improve TCFD and TNFD alignment, we will update our policy as relevant, including our response to the emergence of new risks and opportunities as well as further sustainability- related metrics and targets. In 2024, we commissioned Aon Global Risk Consulting to review the CSA and provide recommendations on next steps to improve the CSA results. A summary of the key recommendations for 2025/2026 are as follows: • Further assessment of potential flood-related impacts – Reliance has been made on the WWF and WRI global datasets to draw conclusions on AEP’s exposure to flooding. These datasets show aggregated exposure at basin/regional levels and although may be suitable for climate perils such as temperature rise and drought, may over- or under- estimate exposure to flooding at a particular site because flood is a localised hazard and can vary quite considerably even over small 96 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) distances. Once flood exposure has been assessed at a site level, potential damage and disruption and the overall financial impact on our Group can be assessed. • Further research into drought exposure – Drought has been assumed not to have major impact on our assets and operations based on the WWF and WRI with drought hazard information showing no change in drought risk. However, there are other sources indicating potential increase in drought probability for Indonesia. Therefore, given the importance of this climate stressor and its direct impact, more research is recommended to validate the assumptions around drought exposure. • Identify and disclose climate and nature- related opportunities – Climate and nature- related opportunities should be identified and their financial impact quantified and reported alongside risks to provide a balanced and more realistic view of potential climate- and nature-related impacts on AEP’s business. • Better communication of AEP’s climate and nature-related initiatives – AEP has come a long way to make its plantation business more sustainable. Examples of our efforts include the implementation of NDPE policy in 2019 or making the necessary arrangements for compliance with the traceability expectations of the EUDR. However, not all initiatives are well communicated externally and therefore not fully reflected in some of our external ESG scores. Better communication of these initiatives are recommended. CLIMATE & NATURE RELATED RISK MANAGEMENT Identifying and assessing climate and nature- related risks Our Board maintains ultimate responsibility for ensuring ongoing risk oversight, including the identification of emerging risks and the reassessment of materiality as conditions evolve. At the operational level, our key management, estate and mill managers continuously identify and assess risks, including those related to climate and nature. This risk management approach is primarily guided by compliance with various standards and certifications implemented across several of our estates and mills, such as ISO14001:2015, PROPER, ISPO, and ISCC. AEP recognises the importance of embedding climate and nature-related risk management into these processes and is committed to ensuring that staff possess a comprehensive understanding of these elements. This will enable a holistic and integrated approach to risk management across the organisation. Managing dependencies, impacts, risks and opportunities AEP is committed to establishing a robust internal framework with clearly defined stakeholder responsibilities to mitigate, transfer, accept, and manage climate and nature- related risks. Short-term operational risks, such as site-specific risks of flooding or drought, are recorded by Group management and prioritised by risk level (high, medium, or low). Oversight of these risks lies with the plantation and mill heads, who collaborate with the Sustainability & Risk Management department. Sustainability- related risks are reported to key management and key issues escalated to the Board, ensuring comprehensive Group-level oversight, approval of mitigation activities at each site, and regular progress reviews. Annual risk reviews are conducted by the Sustainability and EHS department, alongside continuous updates to the Group-wide risk register to reflect regulatory changes. Our Board, equipped with deep knowledge of the palm oil industry and geopolitical and economic issues in AEP’s operating regions, undertakes an annual risk assessment with management, including emerging risks. Recognising the intrinsic link between climate and nature risks and broader strategic and operational risks, these are incorporated into business risk registers. Risks are ranked based on likelihood and impact (low, medium, or high), with mitigation strategies identified for action. Risk management processes include Corporate (financial), Operational, and Engineering registers, all of which are reviewed by management and reported to the Board annually. 97 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) The following are the climate and nature related risks extracted from our Palm Oil Risk Register which is reviewed annually: Risk ID Risk Description Likelihood Impact Mitigation Strategies Owner H M L H M L R1 The long dry period which causes drought - Record the rainfall data from units - Fire patrol using drone and watch tower - Routine patrol by security - Monitoring and early warning systems using websites, such as: https://sipongi.menlhk.go.id/ https://spartan.bmkg.go.id/ https://www.globalforestwatch.org/ Estate Managers, Agronomist, Sustainability team R2 Extreme rainfall which causes flooding - AEP has implemented effective water management to reduce the impact of floods on palm oil production which includes implementing drainage systems, improving soil drainage, and managing water flow on the plantation. - Land Use Planning to reduce the impact of floods on palm oil production, avoiding areas prone to flooding, ensuring drainage systems are in place, and maintaining natural flood buffers, such as wetlands and forests. - Infrastructure design to reduce the impact of floods on palm oil production, by building flood- resistant infrastructure, such as elevated roads, bridges, and buildings using flood-resistant materials. - Early warning systems to identify the risk of floods and allow for early intervention and management. Weather monitoring systems and remote sensing technologies are used to track rainfall and river levels. Training workers in emergency response procedures and having contingency plans in place. Estate Managers, Agronomist, Sustainability team 98 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk ID Risk Description Likelihood Impact Mitigation Strategies Owner H M L H M L R3 Deforestation, Biodiversity & Habitat Loss - AEP commits to sustainable and responsible production practices, such as zero-deforestation and NDPE. This includes protection and restoration of HCV areas and HCS forests, respecting the rights of indigenous communities, and implementing environmentally sound land management practices. - Engage with local communities, indigenous groups, NGOs, and other stakeholders to understand their concerns, respect their rights, and seek their input in decision- making processes. This includes obtaining FPIC from affected communities and involving them in land use planning and management. Estate Managers, Sustainability team R5 Fires - Monitoring and early warning systems can help to identify the risk of drought and allow for early intervention and management. This can include the use of weather monitoring systems and remote sensing technologies to assess soil moisture and vegetation health. - Additional fire towers are being built to monitor fires. - Commit to zero deforestation and no-burn policies, which aim to protect forests and peatlands from conversion and fires (Sustainability Policy). - Engage with local communities to raise awareness and provide alternative livelihoods to reduce their reliance on fire for land clearing. - Implement sustainable standards, such as RSPO, ISPO, ISCC, ISO 14001 and PROPER and train our communities to aid in fire prevention and firefighting. Estate Managers, Sustainability team 99 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Risk ID Risk Description Likelihood Impact Mitigation Strategies Owner H M L H M L R7 Land Rights & Conflicts - Respecting for FPIC: Engage with local communities, especially indigenous groups, to obtain their FPIC before starting any palm oil project on their traditional lands. This involves an open dialog, respecting the rights and preferences of affected communities. - AEP has implemented land tenure mapping and land rights recognition programmes to clarify land boundaries and ensure that communities’ land rights are legally recognised and protected. - AEP conducted thorough due diligence on land acquisition to identify and address potential land rights issues before investing in new plantations. - AEP is providing adequate compensation to the communities for use of land. - AEP has already implemented sustainable standards such as ISPO, ISCC, ISO, PROPER etc. and is implementing RSPO. Estate Managers, Legal, Sustainability team Integration of climate and nature into overall risk management As part of our ongoing efforts, AEP aims to enhance transparency in climate and nature-related risk management. This includes providing detailed accounts of implemented management activities, their impact on inherent risks, and any changes to the materiality of identified risks and opportunities. AEP is actively integrating climate and nature-related risks into its risk management framework while aligning its processes with best management practices. Continuous improvements to these processes are being planned and implemented to ensure they remain robust and effective. In the coming years, priority will be given to integrating these strategies into global risk management frameworks and continuously monitoring mitigation efforts to ensure their effectiveness. At the same time, AEP will continue managing strategic and operational risks incorporating climate and nature, reporting these to the relevant Committees and Board. Risks and opportunities across different climate scenarios and time horizons identified are incorporated as part of regular management review and actions. AEP is aligning the risk reporting frequency to every quarter to the Audit & Risk Management Committee in line with our Board’s reporting cycles. 100 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) AEP is also instigating a new template for use in reporting – this approach specifically enables decision-makers to turn their minds to any specific climate/nature risks as part of a due diligence process when approving significant investments/ projects. For example, prior to agreeing to purchase additional plantation land, impact on climate, and nature should be tabled and discussed. METRICS AND TARGETS Metrics to assess climate and nature-related risks and opportunities AEP employs key metrics to manage risks and opportunities within the business. Our annual GHG reporting, aligned with the GHG Protocol Corporate Accounting Standard and industry guidelines, enables us to assess the impact of business decisions on emissions (measured in metric tonnes CO 2 e). Carbon intensity metrics, such as emissions per ha of planted area, per tonne of FFB produced, and per tonne of CPO produced, serve as indicators of business efficiency throughout the year. These metrics also provide indirect insights into potential physical risks like droughts or excessive rainfall. Additional sustainability-related metrics support the management of climate and nature-related risks and opportunities. These include data from certifications (e.g., ISPO and MSPO), HCV areas, waste production, water consumption, and global cost premiums for certified palm oil products (e.g., RSPO), which help evaluate risks and opportunities arising from shifting market preferences. Building on our review and update of climate and nature-related risks and opportunities (outlined in the Strategy section), we aim to identify further relevant metrics linked to these risks and opportunities. This will include both historical trends and forward-looking projections. AEP reports Scope 1 and 2 emissions in line with the UK Streamlined Energy and Carbon Reporting (“SECR”) regulation. We have also published comprehensive assessment of our Scope 3 emissions across our corporate value chain. We plan to improve our emissions calculation on an ongoing basis by incrementally strengthening our data collection to reduce reliance on estimation. The GHG Protocol Land Sector and Removals Guidance on how companies should account for and report GHG emissions and removals from land management, land use change, biogenic products, carbon dioxide removal technologies, and related activities is currently being developed. A draft of this guidance was initially released in 2023, with the finalised version currently scheduled for publication in the fourth quarter of 2025. We plan to undertake a review of our methodology following the release of the guidance. As outlined above, we maintain additional nature- related metrics through compliance with legal obligations and certifications across several of our estates and mills, including HCV, ISPO, PROPER, ISO14001, and ISCC. These metrics support our commitment to sustainability and responsible business practices. In parallel, the TNFD provides a voluntary framework for organisations to identify and address nature-related risks and opportunities. While adherence to the TNFD is not compulsory, we acknowledge its value in enhancing our strategic approach to sustainability. Consequently, we are proactively engaging with this framework to further strengthen our management of nature- related factors and to ensure alignment with evolving global expectations. Targets for dependencies, impacts, risks, and opportunities AEP remains committed to achieving its sustainability goals, including the target to reduce absolute Scope 1 and 2 emissions by 20.5% by 2030, using a 2019 baseline. However, during the year under review, we observed an increase in Scope 1 and 2 emissions, primarily attributable to our replanting activities. These activities, while temporarily contributing to higher emissions, are essential for long-term productivity and sustainability improvements across our plantations. We continue to assess the appropriateness and ambition of our emissions target to ensure it remains aligned with our business and stakeholder expectations. Meanwhile, strengthened data collection processes have enabled more precise monitoring and reporting, laying the groundwork for more effective emissions management in the future. 101 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) In addition, progress has been made in other areas of sustainability. We have started gathering trend data for water consumption and waste production, which will inform the setting of actionable targets in these areas. Following the completion of our emissions reporting methodology review, we have also finalised the calculation of Scope 3 emissions and are initiating feasibility studies for setting Science- Based Targets (“SBTs”), including SBTi-FLAG in 2025. Furthermore, we are actively exploring guidance from the Science Based Targets Network to integrate climate and nature targets into our broader sustainability strategy. These developments reflect AEP’s ongoing dedication to balancing operational requirements with our long-term environmental commitments. BIODIVERSITY AND NATURE Nature loss and climate change are intrinsically linked, with climate change being a major driver of nature change. AEP is committed to voluntarily making nature-related disclosures using the TNFD framework. Building on the disclosures made last year, we are actively progressing in our TNFD compliance journey, recognising the critical need to allocate resources toward nature and biodiversity to safeguard natural ecosystems. As part of this commitment, we are exploring avenues where we can strategically channel efforts to drive a meaningful impact. It is important to note that our compliance to the TNFD framework is currently limited. We view this as an evolving journey and are dedicating resources to strengthen our alignment with the framework over time. The table below outlines our ongoing efforts and forward-looking plans to enhance TNFD compliance and address nature-related risks and opportunities effectively. TNFD ALIGNMENT SUMMARY Compliance Reference Governance Describe the board’s oversight of nature-related dependencies, impacts, risks, and opportunities Board has oversight which have been enhanced in 2024. Page 82: Board Oversight Describe management’s role in assessing and managing nature- related dependencies, impacts, risks, and opportunities Management has responsibilities and resources which were enhanced in 2024. Page 84: Management’s Role Strategy Describe the nature-related dependencies, impacts, risks, and opportunities the organisation has identified over the short, medium and long term Limited compliance. Some nature-related risks were identified during our climate and nature risk identification exercise conducted in 2023. However, we recognise the importance of undertaking a more comprehensive assessment to encompass a wider range of nature-related factors and will be conducting it in the near future. Page 84: Material climate and nature-related risks and opportunities including the table 102 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Compliance Reference Strategy (Continued) Describe the impact on the business of nature-related risks and opportunities on the organisation’s business, strategy, and financial planning Limited compliance. A scenario analysis was previously conducted to assess how prioritised climate and nature-related risks could impact our business, strategy, and financial planning. However, an update to this analysis will be conducted in the near future to ensure its continued relevance and alignment with current risks and evolving circumstances. Page 95: Impact on business, strategy and financial planning Describe the resilience of the organisation’s strategy, taking into consideration different scenarios, including a 2°C or lower climate scenario The resiliency of strategy against the risks identified earlier is disclosed. Page 96: Resilience of our Strategy Describe the organisation’s interactions with low integrity & high importance ecosystems or areas of water stress Not applicable None of our sites have been identified as located within areas of water stress, but all are located within regions of high biodiversity value. We will outline our interactions with high importance ecosystems in future reports. Risk Management Describe the organisation’s processes for identifying and assessing nature-related dependencies, impacts, risks, and opportunities AEP has implemented a process for identifying assessing prioritising and managing climate and nature risks. The process is now enhanced with the establishment of an ESG and Corporate Governance committee and dedicated ESG resources. Page 97: Identifying and assessing climate and nature-related risks Describe the organisation’s process for managing nature- related dependencies, impacts, risks, and opportunities The process is described in page 97: Managing dependencies, impacts, risks and opportunities. Describe how processes for identifying, assessing, and managing nature-related risks are integrated into the organisation’s overall risk management Currently compliant however as AEP is intending to review and refresh its risk management practice and integrate climate and nature more deeply into the company’s practice. Page 100: Integration of climate and nature into overall risk management 103 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Compliance Reference Describe the organisation’s approach to locate the sources of inputs used to create value that may generate nature- related dependencies, impacts, risks and opportunities AEP’s FFB come from our plantations where we are committed to NDPE. We have identified HCV and HCS areas and implemented conservation programs to mitigate habitat loss (see page 72 for more details). Additionally, we are continuously enhancing traceability of third-party FFB to ensure sourcing from compliant areas. Risk Management (Continued) Describe how stakeholders, including rightsholders, are engaged by the organisation in its assessment and response to nature-related dependencies, impacts risks, and opportunities AEP upholds the FPIC principles, ensuring land rights protection and equitable community engagement. In Seluma Regency, Bengkulu, AEP is actively collaborating with local communities on a social forestry scheme aimed at land recovery, sustainable land use, and community development (See page 66 on details of our social forestry project). This initiative is integrated into AEP’s broader stakeholder collaboration efforts, working alongside NGOs and local groups to monitor nature and environmental changes and support effective land management. Metrics & Targets Disclose the metrics used by the organisation to assess nature- related risks and opportunities in line with its strategy and risk management process The metrics are disclosed in page 101: Metrics to assess climate and nature-related risks and opportunities. Disclose the metrics used by the organisation to assess and manage direct, upstream and, if appropriate, downstream dependencies and impacts on nature Not yet This is an area for further investigation by AEP and for future reporting. Describe the targets used by the organisation to manage nature- related dependencies, impacts, risks and opportunities, and performance against targets Not yet This is an area for further investigation by AEP and for future reporting. Describe how targets on nature and climate are aligned and contribute to each other, and any trade-offs Not yet This is an area for further investigation by AEP and for future reporting. 104 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) CARBON REPORTING 2024 SECR compliant directors’ statement AEP recognises that our global operations have an environmental impact and we are committed to monitoring and reducing our emissions year- on-year. We are also aware of our reporting obligations under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. As such, we continue to report on our energy and carbon performance and are committed to transparent communication about our environmental impact to our stakeholders. This Carbon Reporting, other than the last section on ‘Comprehensive assessment of Scope 3 emissions’ is extracted from Carbon and Energy Data 2024 Report by Accenture published in April 2025. The report accounted for emissions from agricultural cultivation on our own estates under direct Scope 1 emissions, emissions resulting from the purchased electricity used by us under Scope 2, and estimated emissions from outgrower crops processed in AEP Group’s mills. The outgrower crop emissions are included only in the 2024 vs 2023 vs 2019 emissions comparison. 2024 Performance Summary AEP’s scope 1 & 2 emissions increased by 25% (including removals) and 8% (excluding removals) in 2024 compared with 2023. This rise is primarily attributed to a 24% expansion in land clearance activities, which resulted in a proportional increase in emissions. As an agricultural business, our carbon footprint is inherently tied to land management and planting practices. Additionally, the increase in emissions was compounded by a 17% reduction in carbon sequestration across our estates. This decline was driven by a decrease in sequestration ha compared to the previous year, further influencing our overall emissions profile. The increase in land clearance activities and reduction in sequestrable land was mainly attributed to our replanting programme, initiated in 2022. Replanted area (ha) 2022 2023 2024 1,110 1,301 1,700 Between 2025 and 2029, we aim to further replant around 10 thousand ha to support the long-term sustainability of our business. The newly replanted areas are anticipated to require less fertiliser and deliver higher yields compared to the ageing palms they are replacing. The young palms are also expected to sequester carbon more effectively through photosynthesis. Our fuel emissions have decreased by 6%, corresponding to the increase in 2023 in this category due to national grid disruptions that caused an uptake in usage of fuels. Total operational emissions have decreased by 5%, driven by a reduction in POME treatment. There is also a small variance in our overall transport emissions. Onsite transport decreased by 7% due to fewer vehicles in operation during 2024. Energy and Carbon Action In the period covered by the report AEP has undertaken the following emissions and energy reduction initiatives: • Transitioning to LED lighting for office and the mills. • Utilising biogas production to generate electricity using gas engine. • Using transparent roofing for the mill and store building. This will prevent the switching on of lights during daytime. We have reviewed our past carbon footprint performance and conducted an exercise to establish specific emissions reduction targets for the business. We are aware of upcoming changes in best practice guidance, both in the form of the GHG Protocol Land Sector and Removals guidance and across wider target setting guidance. 105 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Metrics and Targets AEP commits to a reduction in absolute Scope 1 and 2 emissions by 20.5% by 2030 from a 2019 baseline. This target does not include the impact of sequestration on site, as activity on this is limited to the age profile of our crop. We have identified the key areas we need to take action as a business to achieve this target, including the conversion of our remaining mills to biogas plants from anaerobic lagoons, limiting our land clearance levels, implementing a no new peat policy and investigating our peat management processes, particularly regarding management of drainage depths. We commit to reporting progress towards this target each year and revisiting its appropriateness and ambition on a regular basis to maintain its value to our business and stakeholders. 2024 Scope 1 & 2 and Outgrower Results Methodology The methodology used to calculate the GHG emissions is in accordance with the requirements of the following standards: • WRI GHG Protocol (revised version) • Defra’s Environmental Reporting Guidelines: Including SECR requirements (March 2019). Following an operational control approach to defining our organisational boundary, our calculated GHG emissions from business activities fall within the reporting period of 1 January 2024 to 31 December 2024 and use the reporting period of January 2023 to December 2023 for comparison. Note on agricultural emissions Emissions from agricultural cultivation form the most significant part of our carbon footprint. As such we have assessed these emissions in line with the methodology development by the RSPO. Version 4 of the RSPO’s Palm GHG application has been used to source relevant emission factors and provide a sense check of calculations. We account for emissions from agricultural cultivation on our own estates under direct Scope 1 emissions, whereby Scope 1 are the direct emissions sources that we own and control. Emissions from land clearance are reported only for the reporting year in which the land clearance activity took place. No amortisation has been applied, whereby the emissions would be allocated equally over several years based on the changing land use during that time. We have chosen not to apply amortisation as there is a lack of industry-acknowledge guidance on this topic at present. We review industry guidance each year and update our methodology as appropriate and are aware a review is currently underway with reporting guidelines to be released in 2025. 106 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Emissions and energy use (Scope 1& 2 with removals) Emissions Source Global Emissions tCO 2 e 2024 vs 20232022 2023 2024 Scope 1 Removals (sequestration) -476,707 -447,716 -369,446 -17% Total with removals 626,316 671,357 841,254 25% Scope 2 Removals 0 0 0 - Total with removals 2,947 2,715 3,632 34% Total Scope 1 & 2 with removals 629,263 674,072 844,886 25% Emissions and energy use (Scope 1 & 2 without removals) Emissions Source Global Emissions tCO 2 e 2024 vs 2023 2022 2023 2024 Scope 1 Fuels 18,565 19,994 18,769 -6% Plantation vehicles 9,209 9,688 8,977 -7% Fertiliser use 25,425 23,961 24,931 4% Land clearance 424,476 450,333 557,270 24% Peat soil cultivation 490,314 490,311 483,070 -1% POME Treatment 135,034 124,786 117,683 -6% Total Scope 1 1,103,023 1,119,073 1,210,700 8% Total Scope 2 Electricity 2,947 2,715 3,632 34% Total Scope 1 & 2 1,105,970 1,121,788 1,214,332 8% Total Energy Usage (gWh) 1,520 1,434 1,287 -10% Intensity ratio tCO 2 e per ha of planted area 16.3 17.3 18.6 7% Intensity ratio tCO 2 e per tonne CPO production 2.8 2.5 3.1 21% Intensity ratio tCO 2 e per tonne FFB production 1.1 1.0 1.2 19% Notes: • AEP is a UK-registered company. However, it has minimal physical presence within the UK. As a result, its contribution to UK emissions stands at 0%. This disclosure is provided in the interest of transparency. • The analysis of GHG emissions is partially based on the country-specific CO 2 emission factors developed by the International Energy Agency, © OECD/IEA 2022 but the resulting analysis of GHG emissions has been prepared by Accenture for AEP and does not necessarily reflect the views of the International Energy Agency. AEP is mandated to report under the UK SECR regulations, as outlined above. To facilitate a direct comparison with our 2019 reporting, the data is additionally presented in a comparable format below for clarity and consistency, and is aligned to the WRI reporting principles of completeness and relevance. This table includes emission estimates of outgrower crops and electricity Transmission and Distribution (“T&D”), which are scope 3 and not included in the earlier Scope 1 & 2 tables. 107 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) 2024 vs 2023 vs 2019 emissions comparison Emissions source Results (tCO 2 e) 2019 2023 2024 2024 vs 2019 POME Treatment 212,215 124,786 117,683 -44% Fertiliser application 26,614 23,961 24,931 -6% Fuel use 18,838 19,994 18,769 0% Diesel n/a 5,252 5,435 n/a Biomass n/a 14,742 13,334 n/a Electricity consumption 1,984 2,715 3,632 83% Electricity T&D n/a 227 303 n/a Company owned vehicles 9,399 9,688 8,977 -4% Third-party vehicles 7,367 6,505 5,371 -27% Total operational emissions 276,417 187,876 179,666 -35% Own crop Outgrower Own crop Outgrower Own crop Outgrower Own crop Outgrower Land clearance 322,182 285,094 450,333 435,042 557,270 539,613 74% 89% Peat soil cultivation 488,823 54,790 490,311 59,997 483,070 54,862 -1% 0% Subtotal before removals 811,005 339,884 940,644 495,039 1,040,340 594,475 28% 75% Carbon sequestered -549,475 -446,388 -447,716 -432,514 -369,446 -395,497 -33% 11% Subtotal including removals 261,530 -106,504 492,928 62,525 670,894 198,978 157% 287% Total land use emissions 155,026 555,453 869,872 461% Overall emissions 431,443 743,329 1,049,538 143% Between 2019 and 2024, total operational emissions fell by 35%, with significant reductions in POME treatment (-44%) and third-party vehicle emissions (-27%). However, land-use emissions surged by 461%, driven by a 74% rise in land clearance and a 33% decline in carbon sequestration. Despite operational improvements, overall emissions increased by 143%, reaching 1,049,538 tCO 2 e in 2024. 108 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) 2024 vs 2019 Operational emissions intensity (excluding land use change emissions) (tCO 2 e) Operational emissions reporting metric 2019 2023 2024 2024 vs 2019 Per ha of planted area 4.07 2.88 2.75 -32% Per tonne CPO production 0.70 0.42 0.45 -36% Per tonne FFB production 0.27 0.17 0.18 -33% The normaliser reported within the main report is calculated using total CO 2 e emissions. In previous years, the normaliser has been calculated on operational emissions only. This reduces the influence of the fluctuations in agricultural emissions. As such, the operational normalisers are also reported below. The operational planted area intensity has decreased by 32%. Conversely, the operational emissions intensity of CPO and FFB production has decreased by 36% and 33%, respectively. Comprehensive assessment of Scope 3 emissions In addition to the SECR-mandated emissions detailed in the previous section, we have included an additional comprehensive inventory of our Scope 3 emissions extracted from the Scope 3 Emission Report 2024 by Peterson Solutions published in March 2025. The assessment of emissions quantification is carried out in accordance with the methodology of the GHG Protocol and aided by the calculation guidance of: • Corporate Value Chain (Scope 3) Accounting and Reporting Standard • Technical Guidance for Calculating Scope 3 Emission (version 1.0) AEP has classified this Scope 3 GHG emissions into 15 distinct categories. This classification enhances transparency across our corporate value chain while minimising inaccuracies. Below is the summary and breakdown for 2024: Scope 3 Emission Plantation (EST) Mill (POM) Office (HO) Total tCO 2 e (Conventional) 591,489.2 628,201.8 309.7 1,220,000.7 tCO 2 e (Biogenic) - 0.1 - 0.1 Scope 3 Emission Contribution of 2024 (tCO 2 e) 0.03% 51.5% 48.5% EST POM HO 109 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) Breakdown: Scope 3 Category Emission (tCO 2 e) Current Performance (%) No. Category Applicability 2023 2024 2024 Contribution 2024 vs 2023 1 Purchased goods and services Relevant 924,138 755,064 61.9% -18% 2 Capital goods Relevant 2,246 7,027 0.6% 213% 3 Fuel-and energy- related activities Relevant 81 162 0.0% 100% 4 Upstream transportation and distribution Relevant 66,645 139,812 11.5% 110% 5 Waste generated in operations Relevant 244,087 246,550 20.2% 1% 6 Business travel Relevant 172 20 - -88% 7 Employee commuting Relevant 1,771 3,993 0.3% 125% 8 Upstream leased assets Relevant 192,092 183 0.0% -100% 9 Downstream transportation and distribution Relevant 10,064 15,361 1.3% 53% 10 Downstream processing of sold products Relevant 67,309 51,829 4.2% -23% 11 Downstream use of sold products Relevant 273 0.08 - - 12 Downstream end-of-life treatment of sold products Irrelevant - - - - 13 Downstream leased assets Irrelevant - - - - 14 Franchises Irrelevant - - - - 15 Investments Irrelevant - - - - TOTAL 1,508,876 1,220,001 100.0% -19% Note: * All emissions of Category 11 originate from biodegradation process of POME to produce electricity via biogas. For more information refer to Section Results – Biogenic Emission. In 2024, the indirect emission from AEP’s value chain is shown to be reduced by 19% from the baseline of 2023. The reduction is linked to decreased procurement of goods and services within the supply chain, primarily driven by Category 1 and 8. Despite the decreased intensity of procurement, few categories are shown to have surging increases in emissions due to the rise of capital expenditure (Category 2) and improved data activities of energy-related usage (Category 3). However, the increased emission from said categories remains overshadowed by the higher reduction from a decline in procurement intensity. 110 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) DIVERSITY Table for reporting on gender identity or sex pursuant to the UK Listing Rules (“UKLR”): Number of board members Percentage of the Board Number of senior positions on the Board Number in executive management Percentage of executive management Men 3 75% 2 6 100% Women 1 25% 1 - - Total 4 100% 3 6 100% Table for reporting on gender identity or sex pursuant to the UKLR: Number of board members Percentage of the Board Number of senior positions on the Board Number in executive management Percentage of executive management White British or other White (including minority- white groups) 1 25% - - - Mixed/Multiple ethnic groups - - - - - Asian/Asian British 3 75% 3 6 100% Black/African/ Caribbean/ Black British - - - - - Other ethnic groups - - - - - Not specified/ prefer not to say - - - - - Total 4 100% 3 6 100% With respect to diversity under the UKLR, our Board has not met the target of achieving at least 40% female representation. Historically, the upstream palm oil industry has faced challenges with female representation in senior roles, resulting in a limited pool of qualified candidates for board positions. Nevertheless, we are committed to enhancing female representation while ensuring the Board upholds its focus on quality and competence. We have, however, met the UKLR requirement of having at least one senior board position held by a woman. Additionally, 75% of our Directors are of Asian background, fulfilling the UKLR requirement to have at least one Board member from a minority ethnic background. The reference date for this disclosure is 31 December 2024, coinciding with the end of our financial year. Moving forward, we intend to continue using 31 December as our reference date, unless circumstances necessitate a change. 111 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) There have been no changes to the Board between 31 December and the approval date of this annual financial report that impact our compliance. To support transparency, we identify all Directors using their passports to confirm gender and ethnicity. Our Board oversees the structure and composition of the management team to ensure selections are grounded in merit, focusing on skills, qualifications, and experience. At the same time, balanced representation is encouraged across age, social, and ethnic backgrounds. This strategy reflects AEP’s commitment to equity and inclusivity, fostering a positive and respectful work environment where every individual feels valued. Our Board remains confident that the current management team exemplifies well- balanced diversity across these key dimensions. EMPLOYEES Oil palm cultivation is a labour-intensive industry. In 2024, the number of full-time workers in our Group averaged 7,486 (2023: 7,515), marking a 0.4 % decrease. Part-time labour averaged 7,954 (2023: 7,812), reflecting a 2% increase. Our Group has introduced mechanisation in the field to boost productivity. While mechanisation has its limitations, it can help alleviate acute labour shortages and mitigate cost pressures from rising minimum wages where feasible. In 2024, the number of full-time workers in our Group averaged 7,486 (2023: 7,515), marking a 0.4% decrease. AEP enforces a zero-cost recruitment policy for all local and foreign employees. We have formal recruitment processes, particularly for key managerial positions, which include psychometric testing to support hiring decisions. Departing employees participate in exit interviews to help management address significant concerns. To enhance workforce competency, our Group regularly selects employees for training programmes conducted at our training centre, offering grounding and refresher courses on technical aspects of oil palm estate and mill management. These programmes are complemented by external management development courses and industry conferences on topics such as work ethics, motivation, health and safety, and technical updates. In 2024, we invested $91,800 in staff training and professional development, compared to $83,000 in 2023, highlighting our commitment to productivity improvement through training. Our cadet programme provides local university graduates with theory and field training over a 12-month period, after which successful candidates are assigned as assistants to various mills and estates. A large workforce and their families live across our plantations. The extensive benefits provided to them were detailed in the CSR section of the Strategic Report. Along with competitive salaries and bonuses, these benefits help us retain and motivate employees. Our Group adheres to Indonesia’s minimum wage policy, respects employee rights, and strictly opposes exploitation, including child or forced labour and human trafficking, as outlined in the UK’s Modern Slavery Act 2015. Note: A full statement is available under Corporate Governance on our website. Employees are covered by a government- mandated personal accident scheme, with death benefits up to 48 months of monthly salary. The spouses and children of full-time employees are also privately insured for death benefits by our Group. 112 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) In addition to Indonesia’s mandatory retirement programme managed by BPJS, casual workers are enrolled in a defined contribution pension scheme managed by AIA Financial, while Indonesian managers and permanent employees benefit from a post-employment compensation fund managed by Allianz Indonesia. Employee rights and extensive benefits, encompassing salary reviews, allowances, bonuses, housing, training, safety, health, and ethical conduct, are documented in our Company’s handbook, accessible to all employees. Our Group is committed to creating equal and ethnically diverse employment opportunities, including gender diversity. Key performance indicators determine employee increments and bonus entitlements. Human Resources and the Remuneration Committee engage annually with labour unions representing full-time workers to address performance bonuses and grievances. Note: More details are available in the Directors Remuneration Report. We have fostered a culture of accountability through our whistle-blower policy, introduced in 2019, which allows employees to confidentially or anonymously raise concerns for independent investigation. The policy is available on our website. Recognising employees as vital assets, our Group encourages their involvement through meetings, performance appraisals, and feedback mechanisms. Annual events, including a dinner to honour high achievers, and family gatherings, promote camaraderie among employees and management. Although we do not have a specific policy on employing disabled persons, our Group welcomes them into the workforce based on their suitability and capabilities. Anti-bribery and Anti-corruption The Group has in place policies and procedures in respect of bribery and corruption, with detailed guidelines and reporting requirements for its UK, Indonesian and Malaysian operations which may be viewed from our Company’s website. 113 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) The whistleblowing and grievance mechanism policies which include reporting on corruption practices are also highlighted in Company’s handbook. Management and senior staff have had training programmes and updates as part of their responsibility to ensure that bribery and corruption do not exist in the Group’s operation. New employees are also briefed on anti- corruption practices during their orientation. Our Group has in place a communication channel for employees to report to the Chairman of the Audit & Risk Management Committee via email at [email protected] on incidences of bribery and corruption, on a strictly confidential basis. Our Group uses its best endeavour to ensure that its business partners comply with the anti-bribery and anti-corruption regulations. OUTLOOK FFB Production and Plantation Growth FFB production for the first quarter of 2025 increased by approximately 4% compared to the same period last year. The growth in production is primarily attributed to newly matured palms in Bengkulu and the recovery of production in Bangka. Annual Production Forecast Based on our current trajectory, we are targeting a 10% increase in FFB production for 2025 compared to 2024. Market Dynamics and Pricing Outlook - CPO supply is expected to remain stable, with production in both Indonesia and Malaysia projected to increase in the second half of 2025. - Domestic demand in Indonesia continues to strengthen, driven by the implementation of the B40 biodiesel mandate, which raises the palm oil blend in biodiesel to 40% (up from 35% in 2023). This move supports the government’s efforts to reduce reliance on fossil fuel imports and promote sustainable energy use. - In India, vegetable oil imports fell by 32% in April, pushing inventory levels to a five-year low. This may trigger a rebound in import volumes in the coming months, providing support for palm oil demand. - While the United States maintains a 32% tariff on Indonesian goods, its limited demand for palm oil means the impact on CPO prices remains negligible. - The recent tariff truce between the US and China could temporarily ease trade barriers, possibly prompting short-term changes in China’s soybean procurement. Although China continues to favour Brazilian soybeans, the suspension may open new opportunities for refined palm oil imports. CIF Rotterdam price for CPO has seen volatility, with recent settlement prices ranging from $1,110/mt to $1,412/mt from early April to 8 May 2025. The market remains sensitive to global vegetable oil trends. Despite potential challenges, such as competition from vegetable oils and global pricing dynamics, we remain confident in the long-term sustainability of CPO demand. As a result, we expect a satisfactory financial results and stable cash flow for 2025. STATEMENT BY DIRECTORS IN PERFORMANCE OF THEIR STATUTORY DUTIES IN ACCORDANCE WITH SECTION 172 (1) OF THE COMPANIES ACT 2006 Our Board is dedicated to promoting the long- term success of AEP in line with Section 172(1) of the Companies Act 2006, by balancing the interests of shareholders and broader stakeholders. In fulfilling this duty, the Board Our Group is committed to creating equal and ethnically diverse employment opportunities, including gender diversity.” 114 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) carefully considers the interests of employees, business relationships with suppliers and customers, the impact of AEP’s operations on the environment and communities, and the need to act fairly between shareholders while maintaining high standards of corporate governance. Engagement with Shareholders and Capital Management • Shareholder Concerns on Pre-Emption Rights: Following the AGM on 24 June 2024, where a significant portion of shareholders opposed the resolution to allot equity securities with the disapplication of pre-emption rights, the Board engaged directly with shareholders to understand their concerns. A key issue raised was dilution risk, with shareholders preferring case-by-case approvals over a general authority. In response, AEP has decided not to pursue private placements, rights issues, or seek a general disapplication of pre-emption rights in 2025. This decision reflects AEP’s commitment to aligning with shareholder preferences and promoting transparency while maintaining a robust and sustainable capital structure that supports long-term growth. • Dividend Policy and Distribution: Our Board has carefully balanced the capital needs for expansion and acquisitions with shareholders’ expectations for dividends. In response to shareholders feedback, AEP formalised a policy to distribute at least 25% of retained profits annually. This policy ensures that AEP remains focused on long-term growth while providing regular returns to shareholders, strengthening shareholder trust, and supporting AEP’s continued success. It is designed to reflect both the need for reinvestment in the business and the interests of shareholders who value returns. • Share Buyback Programme: In 2024, AEP repurchased 71,852 shares for £0.5 million (equivalent to $0.6 million). Recognising the strong fundamentals and growth potential of AEP, the Board increased efforts in 2025, deploying £5 million through a non-discretionary buyback programme. This move is designed to enhance EPS, provide additional value to shareholders, and maintain our Company’s financial health. By reducing the share count, the buyback strengthens AEP’s capacity to return capital to shareholders, contributing to long-term value creation. Strategic growth and operational enhancements • Full Ownership of Indonesian Subsidiaries: In 2024, AEP successfully acquired the remaining minority stakes in two Indonesian subsidiaries, achieving full ownership of all its Indonesian operations. This strategic acquisition enhances operational efficiency, reduces complexity, and maximises shareholder value. It also supports AEP’s broader growth strategy by consolidating its presence in high-quality plantation lands in Malaysia and Indonesia, ensuring sustainable expansion and long-term operational success. This acquisition aligns with our Board’s vision to create value not only for shareholders but also for employees and local stakeholders through operational efficiencies and increased profitability. • Sustainable Investments and Renewable Energy Initiatives: AEP inaugurated Indonesia’s first commercial BioCNG plant via a strategic collaboration with PT KIS Biofuel Indonesia, marking a significant step in reducing carbon emissions and enhancing energy efficiency. This initiative underscores AEP’s commitment to environmental responsibility and aligns with broader sustainability objectives Financial Strategy and Risk Management • Capital Management and Financial Investments: To optimise returns on surplus funds while ensuring capital preservation, AEP allocated $29.1 million in 2024 to capital-protected structured products and investment-grade US dollar-denominated bonds. This prudent strategy enhances liquidity and stability, supporting AEP’s financial goals. It ensures that AEP’s capital is working efficiently for the benefit of shareholders, employees, and other stakeholders, while also safeguarding our Company against potential market volatility. 115 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Strategic Report (Continued) SUSTAINABILITY CERTIFICATIONS AND COMMITMENTS AEP is committed to sustainable plantation management in Indonesia and Malaysia, ensuring compliance with national standards such as ISPO and MSPO. Recognising the increasing global focus on deforestation regulations, particularly from the European Union, the Board has decided to pursue RSPO membership to strengthen AEP’s sustainability credentials. This initiative aligns with AEP’s commitment to responsible palm oil production and addresses key concerns related to the EUDR. In fulfilling our Section 172 duties, the Board ensures that decisions are made with careful consideration of the long-term consequences, the interests of employees, and the need to maintain strong relationships with suppliers, customers, and other stakeholders. We also remain committed to fostering an excellent reputation for business conduct and environmental responsibility, while ensuring fairness among shareholders. This Strategic Report, including the non-financial reporting and sustainability information contained herein, has been prepared in accordance with the requirements of the Companies Act 2006 and reflects the Board’s commitment to transparency and responsible governance. On behalf of the Board: MARCUS CHAN JAU CHWEN Executive Director of Corporate Affairs 30 May 2025 116 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc OPINION We have audited the financial statements of Anglo-Eastern Plantations Plc (the ‘parent company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2024 which comprise: • the consolidated income statement; • the consolidated statement of comprehensive income; • the consolidated statement of financial position; • the consolidated statement of changes in equity; • the consolidated statement of cash flows; • the company statement of financial position; • the company statement of changes in equity; and • notes to the financial statements, including a summary of material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK- adopted international accounting standards and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006. The financial reporting framework that has been applied in the preparation of the company financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 “Reduced Disclosure Framework. In our opinion: • the financial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 31 December 2024 and of the Group’s profit for the year then ended; • the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards; • the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 101 “Reduced Disclosure Framework”, as applied in accordance with the provisions of the Companies Act 2006; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities and public interest entities and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 117 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) Our audit procedures to evaluate the directors’ assessment of the Group’s and the parent company's ability to continue to adopt the going concern basis of accounting included but were not limited to: • Undertaking an initial assessment at the planning stage of the audit to identify events or conditions that may cast significant doubt on the Group’s and the parent company’s ability to continue as a going concern; • Obtaining an understanding of the relevant controls relating to the directors’ going concern assessment; • Making enquiries of the directors to understand the period of assessment considered by them, the assumptions they considered and the implication of those when assessing the Group’s and the parent company’s future financial performance; • Challenging the appropriateness of the directors’ key assumptions in their cash flow forecasts, as described in note 1, by reviewing supporting and contradictory evidence in relation to these key assumptions and assessing the directors’ consideration of severe but plausible scenarios. This included assessing the viability of mitigating actions within the directors’ control; • Testing the accuracy and functionality of the model used to prepare the directors’ forecasts; • Assessing the historical accuracy of forecasts prepared by the directors; • Considering the consistency of the directors’ forecasts with other areas of the financial statements and our audit; • Reviewing of the Group’s available cash balance as of 30 April 2025, and • Evaluating the appropriateness of the directors’ disclosures in the financial statements on going concern Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and the parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. In relation to Anglo-Eastern Plantations Plc’s reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the director’s considered it appropriate to adopt the going concern basis of accounting. KEY AUDIT MATTERS Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We summarise below the key audit matters in forming our opinion above, together with an overview of the principal audit procedures performed to address each matter and our key observations arising from those procedures. These matters, together with our findings, were communicated to those charged with governance through our Audit Completion Report. 118 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) Key audit matter How our scope addressed this matter Impairment of property, plant and equipment (Group) Refer to note 2 (accounting policies) and note 12 (Property, plant and equipment) to the consolidated financial statements. Property, plant and equipment represented $271.2 million at 31 December 2024 and $274.4 million at 31 December 2023. The Group is required to annually assess for any indicators of impairment and conduct an impairment review if such indicators are identified. The valuation of property, plant and equipment, including the assessment of the recoverable amount of these assets is a key audit matter, due to the high degree of estimation and judgement required by management. This involves judgements in identifying Cash Generating Units (“CGU’s”), assumptions about the future evolution of trading and production yield considering the impact of climate change, Crude Palm Oil (“CPO”) prices, discount rates applied to future cash flows and the valuation of land. Following the analysis of impairment indicators, the Group conducted an impairment review for seven CGUs. Our audit procedures included, but were not limited to: • Reviewing the assessment prepared by management, which included a formal memorandum and relevant supporting documentation. We conducted interviews with management to understand the basis and process for assessing impairment, and tested the design and implementation of the key controls. • Assessing management’s identification and determination of the carrying value of CGUs, ensuring alignment with requirements of IAS 36 Impairment of Assets. • Evaluating the appropriateness and completeness of management’s impairment indicators analysis. • Reviewing the cashflow forecasts used to support the value in use calculations (where this was applied to assess the recoverable amount of CGUs) and ensuring they were based on budgets or plans approved by the Board. • Testing the mathematical integrity of impairment models and the completeness and accuracy of data inputs. • With the assistance of our valuation experts in the UK, challenging key assumptions used in the impairment models, such as CPO price, production yield, inflation rate and WACC. • Challenging management on the achievability of the cash flow forecasts and assessing the appropriateness of the projected financial information against original forecasts and other market data to assess the robustness of management’s forecasting process. • Conducting independent sensitivity analysis, considering management’s forecasting accuracy, historical trends, post year-end results, and market data. 119 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Key audit matter How our scope addressed this matter • Where fair value less cost to sell valuations were used to assess the recoverable amount, engaging our valuation experts to challenge management’s expert and management on the method and key assumptions used in their valuations, and testing the reasonableness of assumptions used against external sources. We also assessed the impact of legal and environmental factors on asset valuations. • Reviewing management’s expert reports and considering the capabilities, competence, objectivity, and independence of management’s experts. • Assessing the adequacy of the disclosures in the consolidated financial statements, particularly around the key assumptions and key sources of estimation uncertainty. Our observations Based on our audit work performed, the carrying value of property, plant and equipment reflected in the consolidated financial statements is appropriate. Control recommendations relevant to the impairment of property, plant and equipment were communicated to the Audit Committee. Valuation of plasma receivables (Group) Refer to note 2 (accounting policies), note 14 (receivables: non-current) and note 18 (trade and other receivables) to the consolidated financial statements. Receivables due from cooperatives under the plasma scheme amounted to $21.6 million at 31 December 2024 and $20.3 million at 31 December 2023. These receivables represent amounts due from cooperatives under the plasma programme to fund the development of new plantings including land cost, and maintenance and upkeep of matured plantations. The valuation of plasma receivables is a key audit matter, due to the high degree of estimation and judgement required by management. This includes judgements regarding the accounting treatment, the period and methods for recovery of these balances, and assumptions about the future evolution of production and Fresh Fruit Bunches (FFB) prices. Our audit procedures included, but were not limited to: • Obtaining the assessment prepared by management, which included a formal memorandum and relevant supporting workings, and conducting a meeting with them to understand the basis and process for accounting and assessing the recoverability of plasma receivables. • Testing the design and implementation of the key controls related to this business process. • With the assistance of our technical department in the UK, assessing the accounting treatment used by management to record the value of plasma receivables at initial recognition, including challenging management’s judgement that the advances can be repaid on demand. • Reviewing and examining the contracts and agreements between the plantations and plasma farmers to understand the terms and conditions, including payment terms and obligations. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 120 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Key audit matter How our scope addressed this matter • Assessing the ECL model applied to plasma receivables including challenging the assumptions used in the impairment analysis. • Assessing the adequacy of the presentation and disclosures in the consolidated financial statements, particularly around the key judgements and key sources of estimation uncertainty. Our observations Based on our audit work performed, the carrying value of plasma receivables reflected in the consolidated financial statements is appropriate. Control recommendations relevant to plasma receivables were communicated to the Audit Committee. Recoverability of taxes receivable (Group) Refer to note 2 (accounting policies) and note 8 (tax expense) to the consolidated financial statements. Tax receivables amounted to $62.1 million at 31 December 2024 and $58.1 million at 31 December 2023. These receivables represent VAT and corporate income taxes paid to tax authorities in advance based on prior year results. When the profit of the prior year exceeds that of the current year, it will result in a corporate tax overpayment. This excess amount must be reclaimed from the tax authorities following a tax audit. Claiming a prepaid income tax refund in Indonesia is a lengthy and complex process that requires a tax audit and multiple levels of arbitration, often with uncertain outcomes. The recoverability of these tax receivables is a key audit matter due to the high degree of estimation and judgment required by management. This includes assessing the probability of recovery and determining the amounts likely to be recovered. Our audit procedures were performed by the component auditor and tax experts in Indonesia, under the guidance of the Group auditor. These procedures included, but were not limited to: • Examining the company’s tax returns and filings to ensure that the amounts claimed as receivables are accurate and supported by documentation. • Testing the design and implementation of the key controls over the business process. • Tracing the tax payments made during the year to bank statements. • Examining the historical recovery rates and past precedents to assess the appropriateness of management’s judgement on recoverability. • Reviewing correspondence with tax authorities for any indications of disputes or issues that might affect the recoverability of the receivables. • Challenging management’s assumptions regarding the probability of recovering those balances. Our observations Based on our audit work performed, the carrying value of taxes receivable reflected in the consolidated financial statements are appropriate. Control recommendations relevant to taxes receivables were communicated to the Audit Committee. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 121 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 OUR APPLICATION OF MATERIALITY AND AN OVERVIEW OF THE SCOPE OF OUR AUDIT The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and on the financial statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: GROUP MATERIALITY Overall materiality $3,950,000 How we determined it 5% of profit before tax Rationale for benchmark applied Profit before tax was selected as the benchmark for determining materiality for the Group financial statements as it is considered the primary indicator of the Group’s financial performance. Performance materiality Performance materiality is set to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements in the financial statements exceeds materiality for the financial statements as a whole. We set performance materiality at $1,980,000, which represents 50% of overall materiality. In determining performance materiality, we considered the history of misstatements detected in previous years, the effectiveness of the control environment and the fact that this is our first year as the Group’s auditor. Reporting threshold We agreed with the directors that we would report to them misstatements identified during our audit above $120,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 122 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 PARENT COMPANY MATERIALITY Overall materiality $1,375,000 How we determined it 2% total assets Rationale for benchmark applied The company does not trade, with its main operations being that of a holding company. Total assets are considered to be the most appropriate benchmark for the users of the financial statements. Performance materiality Performance materiality is set to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements in the financial statements exceeds materiality for the financial statements as a whole. We set performance materiality at $690,000, which represents 50% of overall materiality. In determining performance materiality, we considered the history of misstatements detected in previous years, the effectiveness of the control environment and the fact that this is our first year as the parent company’s auditor. Reporting threshold We agreed with the directors that we would report to them misstatements identified during our audit above $42,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons. As part of designing our audit, we assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and then designed and performed audit procedures responsive to those risks. In particular, we looked at where the directors made subjective judgements, such as assumptions on significant accounting estimates. SCOPE OF THE GROUP AUDIT We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a whole. We used the outputs of our risk assessment, our understanding of the Group and the parent company, their environment, controls, and critical business processes, to consider qualitative factors to ensure that we obtained sufficient coverage across all financial statement line items. The Group financial statements are a consolidation of 24 components made up of the Parent Company, a principal sub-holding company, two management companies, five dormant companies and 15 operating companies. 13 of the operating companies are located in Indonesia and 2 in Malaysia. The head office with an accounting function is located in Kuala Lumpur, Malaysia, with a second office and main accounting function located in Medan, Indonesia. Based on our risk assessment, we identified 13 operating companies, one management company and the UK parent company as key or material components. These entities required a full scope audit of their complete financial information due to their financial significance. Additionally, two companies, consisting of one management company and one operating company required audit procedures on specific areas due to their risk characteristics or because they had balances that were material to the Group. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 123 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Below is a summary of the Group approach demonstrating the coverage of Group revenue, profit before tax, net assets and total assets. Scope Revenue Profit before tax Net assets Total assets Full scope audit 99% 100% 96% 96% Audit procedures over one or more account balances and/or disclosures 0% 0% 4% 4% Total coverage 99% 100% 100% 100% For components located in Indonesia, the audit work was conducted by the Forvis Mazars network firm in Indonesia. For those located in the UK or Malaysia, the work was performed by the Group audit team without the involvement of a component team. Certain additional procedures were performed at the Group level by the Group audit team regarding the Key Audit Matters. These, along with the audit procedures over the Group consolidation, provided the necessary evidence to form our opinion on the Group financial statements as a whole. As part of the audit strategy, senior members of the Group audit team visited Indonesia to meet the component auditor as well as local and Group management. They also attended several meetings with management and the Board via video conference. The Group Engagement Partner met with members of senior management in Indonesia and with the Chair of the Audit Committee in the UK. Our involvement with component auditors For the work performed by the component auditor, we determined the level of involvement required to conclude whether sufficient appropriate audit evidence had been obtained to support our audit opinion on the Group financial statements as a whole. Our involvement, which commenced from the planning phase, included the following: • Planning phase: We issued Group audit instructions to the Indonesian component audit team and held several planning meetings via video conference to discuss the Group and local risks identified, as well as agree on the testing approach and audit timelines. Senior members of the Group audit team, who had direct access to the component auditor’s files, reviewed the planning documentation. • On-site planning visit: The Group Engagement Partner, along with another senior member of the Group audit team, visited Medan to meet with the component auditor and management for further audit planning. This visit also included site visits of three plantation estates. • Fieldwork stage: Senior members of the Group audit team, including the Group Engagement Partner, revisited Medan, Indonesia to review the audit files for all 14 Indonesian components in scope. The Group auditors also performed audit work on areas they were responsible for in person with management in Indonesia. The component auditor visited all 14 plantation estates to conduct audit testing and perform on-site stock takes. The Group audit team attended local closing meetings with the component auditor in person. • Post-fieldwork review: After the visit to Indonesia, any additional work required by the Group audit team was performed by the component auditors and reviewed remotely by the Group audit team. • Completion stage: The Group audit team attended closing meetings with the local audit team and with management via video conference, and reviewed their reporting. Discussions were held with Group management regarding the audit findings, including any adjustments raised. Additionally, at the Group level, the Group audit team tested the consolidation process and carried out analytical procedures to confirm our conclusion that there were no significant risks of material misstatement in the aggregated financial information. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 124 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Component materiality Component materiality applied in our Group audit ranged from $200,000 to $2,100,000. OTHER INFORMATION The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements and those reports have been prepared in accordance with applicable legal requirements; • the information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Guidance and Transparency Rules sourcebook made by the Financial Conduct Authority (the FCA Rules), is consistent with the financial statements and has been prepared in accordance with applicable legal requirements; and • information about the parent company’s corporate governance code and practices and about its administrative, management and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In light of the knowledge and understanding of the Group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the: • strategic report or the directors’ report; or • information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 125 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or • the parent company financial statements and the part of the directors’ remuneration report to be audited are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • a corporate governance statement has not been prepared by the parent company. CORPORATE GOVERNANCE STATEMENT The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to Anglo-Eastern Plantations Plc’s compliance with the provisions of the UK Corporate Governance Statement specified for our review. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit: • Directors’ statement with regards the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified, set out on page 56; • Directors’ explanation as to its assessment of the entity’s prospects, the period this assessment covers and why they period is appropriate, set out on page 56; • Directors’ statement on fair, balanced and understandable, set out on page 19; • Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks, set out on page 73; • The section of the annual report that describes the review of effectiveness of risk management and internal control systems, set out on page 37; and • The section describing the work of the audit committee, set out on page 34. RESPONSIBILITIES OF DIRECTORS As explained more fully in the directors’ responsibilities statement set out on page 23, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 126 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the Group and the parent company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: health and safety legislation, labour and employment laws in Indonesia, the requirements of the Anti-Bribery and Corruption Acts in the UK, Indonesia and Malaysia, Malaysian and Indonesian Land Laws, Indonesian plasma regulations, the Indonesian Sustainable Palm Oil (“ISPO”) and Malaysian Sustainable Palm Oil (“MSPO”) certification schemes and we considered the extent to which non-compliance might have a material effect on the Group financial statements. To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: • Gaining an understanding of the legal and regulatory framework applicable to the Group and the parent company, the industry in which they operate, and the structure of the Group, and considering the risk of acts by the Group and the parent company which were contrary to the applicable laws and regulations, including fraud; • Inquiring of the directors, management and, where appropriate, those charged with governance, as to whether the Group and the parent company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; • Inspecting correspondence with relevant regulatory and tax authorities for any instances of non- compliance with laws and regulations; • Involvement of tax specialists in the audit; • Reviewing minutes of directors’ meetings in the year; and • Discussing amongst the engagement team the laws and regulations listed above, and remaining alert to any indications of non-compliance. We also considered those laws and regulations that have a direct effect on the preparation of the financial statements. We identified such laws and regulations to be the Companies Act 2006, Indonesian pension legislation and tax legislation. In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, the posting of inappropriate journals to revenue, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to impairment of property, plant and equipment, valuation of plasma receivable, revenue recognition (which we pinpointed to the occurrence and cut-off assertion), and significant one-off or unusual transactions. Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 127 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Our procedures in relation to fraud included but were not limited to: • Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; • Gaining an understanding of the internal controls established to mitigate risks related to fraud; • Discussing amongst the engagement team the risks of fraud; and • Addressing the risks of fraud through management override of controls by performing journal entry testing. The primary responsibility for the prevention and detection of irregularities, including fraud, rests with both those charged with governance and management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. The risks of material misstatement that had the greatest effect on our audit are discussed in the “Key audit matters” section of this report. A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. OTHER MATTERS WHICH WE ARE REQUIRED TO ADDRESS Following the recommendation of the Audit Committee, we were appointed by the Directors of Anglo-Eastern Plantations Plc’s at the Company’s Annual General Meeting on 24 June 2024 to audit the financial statements for the year ending 31 December 2024 and subsequent financial periods. The period of total uninterrupted engagement is 1 year. The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the parent company and we remain independent of the Group and the parent company in conducting our audit. Our audit opinion is consistent with our additional report to the audit committee. USE OF THE AUDIT REPORT This report is made solely to the parent company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body for our audit work, for this report, or for the opinions we have formed. Natalia Moolman (Senior Statutory Auditor) for and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor 30 Old Bailey London EC4M 7AU 30 May 2025 Independent Auditor’s Report to the members of Anglo-Eastern Plantations Plc (Continued) 128 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Income Statement For the year ended 31 December 2024 (Restated) 2024 2023 Note $000 $000 Continuing operations Revenue 3 372,263 370,435 Cost of sales (286,583) (291,553) Changes in fair value of biological assets 17 2,942 (875) Gross profit 88,622 78,007 Administration expenses (8,980) (8,832) Other income 1,094 527 Impairment loss (133) (35) Gain arising from fair value of investments 13 1,131 45 Operating profit 81,734 69,712 Exchange gains 1,056 164 Finance income 4 5,365 7,977 Finance expense 4 (65) (45) Profit before tax 5 88,090 77,808 Tax expense 8 (20,478) (21,715) Profit for the year from continuing operations 67,612 56,093 Gain on discontinued operations, net of tax 9 - 6,524 67,612 62,617 Profit for the year attributable to: - Owners of the parent 67,514 53,225 - Non-controlling interests 98 9,392 67,612 62,617 Profit for the year from continuing operations attributable to: - Owners of the parent 67,514 49,418 - Non-controlling interests 98 6,675 67,612 56,093 Earnings per share attributable to the owners of the parent during the year Profit - basic and diluted 10 170.88cts 134.54cts Profit from continuing operations - basic and diluted 10 170.88cts 124.92cts Earnings per share are shown in note 10. * The details of prior year restatement are disclosed in note 32. There have been two classification changes made to the financial statements resulting in comparative amounts for the year ended 31 December 2023 being reclassified. In 2023, $527,000 was reclassified from revenue to other income to better reflect its nature (refer to Note 3). In addition, administrative expenses amounted to $8,867,000, including an impairment loss of $35,000, which has been presented separately in the comparative figures. The accompanying notes are an integral part of this consolidated income statement. 129 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Statement of Comprehensive Income For the year ended 31 December 2024 (Restated) 2024 2023 $000 $000 Profit for the year 67,612 62,617 Other comprehensive loss: Items may be reclassified to profit or loss: (Loss)/profit on exchange translation of foreign operations (23,184) 9,957 Recycling of foreign exchange on disposal - (10,431) Net other comprehensive loss may be reclassified to profit or loss (23,184) (474) Items not to be reclassified to profit or loss: Remeasurement of retirement benefits plan, net of tax 378 (375) Net other comprehensive income/(loss) not being reclassified to profit or loss 378 (375) Total other comprehensive loss for the year, net of tax (22,806) (849) Total comprehensive income for the year 44,806 61,768 Total comprehensive income for the year attributable to: - Owners of the parent 44,612 52,840 - Non-controlling interests 194 8,928 44,806 61,768 * The details of prior year restatement are disclosed in note 32. The accompanying notes are an integral part of this consolidated statement of comprehensive income. 130 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Statement of Financial Position As at 31 December 2024 Company Number: 01884630 (Restated) (Restated) 31.12.2024 31.12.2023 31.12.2022 Note $000 $000 $000 Non-current assets Property, plant and equipment 12 271,170 274,382 252,414 Investments 13 5,111 10,035 42 Receivables 14 19,363 17,617 17,042 Deferred tax assets 15 1,900 2,126 3,950 297,544 304,160 273,448 Current assets Inventories 16 18,767 16,684 19,590 Income tax receivables 8 18,316 17,497 4,122 Other tax receivables 8 43,749 40,575 37,576 Biological assets 17 8,057 5,419 6,161 Trade and other receivables 18 7,062 13,378 5,389 Investments 13 23,976 - - Short-term investments 19 1,253 14,076 55,566 Cash and cash equivalents 19 181,908 152,984 221,476 303,088 260,613 349,880 Assets in disposal groups classified as held for sale 9 - - 9,000 303,088 260,613 358,880 Current liabilities Trade and other payables 20 (21,403) (26,862) (33,372) Income tax liabilities 8 (5,466) (2,951) (10,230) Other tax liabilities 8 (1,201) (1,184) (1,221) Dividend payables (46) (41) (32) Lease liabilities 21 (307) (300) (73) (28,423) (31,338) (44,928) Net current assets 274,665 229,275 313,952 Non-current liabilities Deferred tax liabilities 15 (2,225) (813) (805) Retirement benefits - net liabilities 22 (11,073) (11,298) (10,874) Lease liabilities 21 (453) (709) (31) (13,751) (12,820) (11,710) Net assets 558,458 520,615 575,690 131 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Statement of Financial Position As at 31 December 2024 (Continued) Company Number: 01884630 (Restated) (Restated) 31.12.2024 31.12.2023 31.12.2022 Note $000 $000 $000 Issued capital and reserves attributable to owners of the parent Share capital 23 15,504 15,504 15,504 Treasury shares 23 (2,487) (1,847) (1,171) Share premium 23,935 23,935 23,935 Capital redemption reserve 1,087 1,087 1,087 Exchange reserves (364,402) (341,180) (288,891) Retained earnings 877,394 816,140 715,631 551,031 513,639 466,095 Non-controlling interests 7,427 6,976 109,595 Total equity 558,458 520,615 575,690 The financial statements were approved and authorised for issue by the Board of Directors on 30 May 2025 and were signed on its behalf by: Marcus Chan Jau Chwen Executive Director of Corporate Affairs * The details of prior year restatements are disclosed in note 32. The accompanying notes are an integral part of this consolidated statement of financial position. 132 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Statement of Changes in Equity As at 31 December 2024 Note Share capital Treasury shares Share premium Capital redemption reserve Exchange reserves Retained earnings Total Non- controlling interests Total equity $000 $000 $000 $000 $000 $000 $000 $000 $000 Balance at 31 December 2022 15,504 (1,171) 23,935 1,087 (289,434) 722,191 472,112 111,865 583,977 Restatements 32 - - - - 543 (6,560) (6,017) (2,270) (8,287) Balance at 31 December 2022 (Restated) 15,504 (1,171) 23,935 1,087 (288,891) 715,631 466,095 109,595 575,690 Items of other comprehensive income/(loss) - Remeasurement of retirement benefit plan, net of tax 22 - - - - - (374) (374) (1) (375) - Recycling of foreign exchange on disposal - - - - (8,307) - (8,307) (2,124) (10,431) - Gain on exchange translation of foreign operations (Restated) - - - - 8,296 - 8,296 1,661 9,957 Total other comprehensive loss (Restated) - - - - (11) (374) (385) (464) (849) Profit for the year (Restated) - - - - - 53,225 53,225 9,392 62,617 Total comprehensive income for the year (Restated) - - - - (11) 52,851 52,840 8,928 61,768 Acquisition of non-controlling interests (Restated) 31 - - - - (52,278) 63,512 11,234 (99,042) (87,808) Share buy back - (676) - - - - (676) - (676) Dividends paid - - - - - (15,854) (15,854) (12,505) (28,359) Balance at 31 December 2023 (Restated) 15,504 (1,847) 23,935 1,087 (341,180) 816,140 513,639 6,976 520,615 Items of other comprehensive (loss)/ income - Remeasurement of retirement benefit plan, net of tax 22 - - - - - 378 378 - 378 - Loss on exchange translation of foreign operations - - - - (23,280) - (23,280) 96 (23,184) Total other comprehensive (loss)/income - - - - (23,280) 378 (22,902) 96 (22,806) Profit for the year - - - - - 67,514 67,514 98 67,612 Total comprehensive (loss)/income for the year - - - - (23,280) 67,892 44,612 194 44,806 Acquisition of non-controlling interests 31 - - - - 58 (715) (657) 257 (400) Share buy back - (640) - - - - (640) - (640) Dividends paid - - - - - (5,923) (5,923) - (5,923) Balance at 31 December 2024 15,504 (2,487) 23,935 1,087 (364,402) 877,394 551,031 7,427 558,458 133 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Statement of Cash Flows For the year ended 31 December 2024 2024 2023 $000 $000 Cash flows from operating activities Profit before tax from continuing operations 88,090 77,808 Adjustments for: Changes in fair value of biological assets (2,942) 875 Gain on disposal of property, plant and equipment (380) (49) Depreciation 18,986 16,400 Retirement benefit provisions 2,764 2,581 Finance income (5,365) (7,977) Finance expense 65 45 Unrealised loss/(gain) in foreign exchange 31 (164) Gain arising from fair value (1,131) (45) Property, plant and equipment written off 451 191 Impairment losses 133 35 (Reversal)/Provision for expected credit loss (9) 331 Operating cash flows before changes in working capital 100,693 90,031 (Increase)/Decrease in inventories (2,907) 3,405 Decrease/(Increase) in non-current, trade and other receivables 5,588 (8,520) Decrease in trade and other payables (5,059) (6,939) Cash inflows from operations 98,315 77,977 Retirement benefits paid (1,984) (1,206) Overseas tax paid (22,384) (43,108) Operating cash flows from continuing operations 73,947 33,663 Operating cash flows used in discontinued operations - (1,808) Net cash generated from operating activities 73,947 31,855 Investing activities Property, plant and equipment - purchases (29,013) (33,421) - sales 872 315 Interest received 5,365 7,977 Increase in receivables from cooperatives under plasma scheme (5,010) (4,894) Repayment from cooperatives under plasma scheme 2,689 1,921 Investment in investment portfolio or bond portfolio (45,990) (9,948) Disposal of investment portfolio 28,069 - Disposal of subsidiaries - 8,500 Placement of fixed deposits with original maturity of more than three months (1,253) (14,076) Withdrawal of fixed deposits with original maturity of more than three months 14,076 55,566 Cash (used in)/generated from investing activities from continuing operations (30,195) 11,940 Cash used in investing activities from discontinued operations - (1,786) Net cash (used in)/generated from investing activities (30,195) 10,154 134 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Consolidated Statement of Cash Flows For the year ended 31 December 2024 (Continued) 2024 2023 Note $000 $000 Financing activities Dividends paid to the holders of the parent (5,918) (15,845) Dividends paid to non-controlling interests - (12,505) Repayment of lease liabilities - principal (340) (243) Repayment of lease liabilities - interest (65) (45) Acquisition of non-controlling interests (400) (86,620) Share buy back (640) (676) Cash used in financing activities from continuing operations (7,363) (115,934) Cash used in financing activities from discontinued operations - - Net cash used in financing activities (7,363) (115,934) Net increase/(decrease) in cash and cash equivalents 36,389 (73,925) Cash and cash equivalents At beginning of year 152,984 221,476 Exchange (losses)/gains (7,465) 5,433 At end of year 181,908 152,984 Comprising: Cash at end of year 19 181,908 152,984 The variance of finance income from the prior year relates to the reclassification of finance expenses, which are now disclosed separately. The accompanying notes are an integral part of this consolidated statement of cash flows. 135 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements 1 Basis of preparation AEP is a company incorporated in the UK under the Companies Act 2006 and is listed on the London Stock Exchange. The registered office of AEP is located at Quadrant House, 6 th Floor, 4 Thomas More Square, London E1W 1YW, UK. The principal activity of the Group is plantation agriculture, mainly in the cultivation of oil palm in Indonesia and Malaysia, of which Indonesia is the principal place of business. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all years presented. Basis of preparation The consolidated financial statements have been prepared in accordance with UK adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The consolidated financial statements have been prepared on a historical cost basis, except for the following items: • Biological assets (note 17) • Retirement benefits (note 22) • Investments (note 13) The Directors have carried out stress tests, factoring in the identified uncertainties and risks such as commodity prices, together with the current economic to ensure that the Group has adequate resources in a worst-case scenario to remain as a going concern for at least twelve months from the date of this report. The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has sufficient cash resources to cover the Group’s operating expenses for a period of at least twelve months from the date of approval of these financial statements. For these reasons, the Directors adopted a going concern basis in the preparation of the financial statements. The Directors have made this assessment after consideration of the Group’s budgeted cash flows and related assumptions including stress testing of identified uncertainties, as well as the impact of a 50% decrease in the demand for palm oil. Stress testing of other identified uncertainties and risks such as commodity prices was also undertaken. The US tariff war had no material impact on the Indonesian palm oil industry during the reporting period. Changes in accounting standards (a) New standards, interpretations and amendments effective for the first time for the accounting periods beginning on or after 1 January 2024 in these financial statements in the current year • IAS 1 Presentation of Financial Statements, amendment related to Classification of Liabilities as Current or Non-Current • IAS 1 Presentation of Financial Statements, amendment related to Non-current Liabilities with Covenants • IFRS 16 Leases, amendment related to Lease Liability in a Sale and Leaseback • IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, amendment related to Supplier Finance Arrangements 136 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 1 Basis of preparation (continued) (b) New standards, interpretations and amendments not yet effective. The following new standards, interpretations and amendments are effective for future periods (as indicated) and have not been applied in these financial statements: • IAS 21 The Effects of Changes in Foreign Exchange Rates, amendment related to Lack of Exchangeability (1 January 2025, not yet adopted) • Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: Classification and Measurement of Financial Instruments (1 January 2026, not yet adopted) • IFRS 18 Presentation and Disclosure in Financial Statements (1 January 2027, not yet adopted) • IFRS 19 Subsidiaries without Public Accountability: Disclosures (1 January 2027, not yet adopted). None of the above new standards, interpretations and amendments are expected to have a material effect on the Group's future financial statements. 2 Accounting policies (a) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. The Company controls a subsidiary if all three of the following elements are present; power over the subsidiary, exposure to variable returns from the subsidiary, and the ability of the investor to use its power to affect those variable returns. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date control ceases. In respect of cooperatives under the Plasma scheme, the Group has not consolidated these entities, as it neither has control nor significant influence. All key decisions are made independently by the cooperatives, and the Group holds no voting rights or representation on governing bodies. The Group has assessed the relationship with the cooperatives based on the criteria set out in IFRS, specifically evaluating control and significant influence. Despite the Group’s involvement in the scheme, it does not exercise de facto control or influence over the cooperatives’ decision-making processes. Accordingly, the cooperatives do not meet the criteria for consolidation or equity accounting under IFRS. (b) Business combinations The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the consolidated statement of financial position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. Acquisitions of entities that comprise principally land with no active plantation business do not represent business combinations, in such cases, the amount paid for each acquisition is allocated between the identifiable assets/liabilities at the acquisition date. 137 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (c) Foreign currency Critical judgement on functional currency The individual financial statements of each subsidiary are presented in the currency of the country in which it operates (its functional currency), being the currency in which the majority of their transactions are denominated. The Company and its UK subsidiaries present in their financial statements in US Dollar, which is also their functional currency. The presentation currency for the consolidated financial statements is also US Dollar, chosen because, as internationally traded commodities, the price of the bulk of the Group’s products are ultimately linked to the US Dollar. On consolidation, the results of overseas operations are translated into US Dollar at average exchange rates for the year unless exchange rates fluctuate significantly in which case the actual rate is used. All assets and liabilities of overseas operations are translated at the rate ruling at the balance sheet date. Exchange differences arising on re-translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised directly in equity (the “exchange reserves”). Exchange differences recognised in the income statement of Group entities’ separate financial statements on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to the exchange reserves if the item is denominated in the presentational currency of the Group or of the overseas operation concerned. On disposal of a foreign operation, the cumulative exchange differences recognised in the exchange reserves relating to that operation up to the date of disposal are transferred to the income statement as part of the profit or loss on disposal. All other exchange profits or losses are credited or charged to the income statement. (d) Revenue recognition The Group derives its revenue from the sale of CPO, palm kernel, FFB, shell nut, biogas products and rubber slab. Revenue for CPO, palm kernel, shell nut and FFB are recorded net of sales taxes, including export taxes and recognised when the customer has taken delivery of the goods or the goods has been delivered, which is deemed to be the point at which the performance obligation is satisfied. The collection/delivery of the goods will not take place until the goods are paid for. Sales of rubber slab are recognised on signing of the sales contract, this being the point at which control is transferred to the buyer. Sales of biogas products are recognised upon generation, when control over the generated electricity is transferred to the buyer. The transacted price for each product is based on the market price or predetermined monthly contract value. There is no right of return nor warranty provided to the customers on the sale of products and services rendered. The payment terms for CPO, palm kernel, and shell nut are mainly based on advance payments from customers, whereby payments are typically received prior to or upon delivery. This arrangement helps mitigate credit risk and ensures timely cash flow for the Group’s operations. Advance receipts represent the Group's obligation to transfer goods to a customer for which the Group has received consideration but the goods have yet to be delivered to/collected by the customer. 138 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (e) Tax Tax is recognised in the consolidated income statement, except to the extent that is relates to items recognised in other comprehensive income, or directly in equity. In this case, tax is also recognised in other comprehensive income or directly in equity accordingly. UK and foreign corporation tax are provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. The directors consider that the carrying amount of tax receivables approximates its fair value. Uncertainty Over Income Tax Treatments – IFRIC 23 The Group applies IFRIC 23 – Uncertainty over Income Tax Treatments, which clarifies the accounting for uncertainties in income taxes under IAS 12. Where there is uncertainty over the income tax treatment of an item, the Group assesses whether it is probable that the taxation authority will accept the uncertain tax treatment. This involves: • Considering uncertain tax treatments either individually or collectively, depending on which approach better predicts the resolution of the uncertainty; • Assuming full examination by the relevant tax authorities with complete knowledge of all related facts and circumstances; • If it is probable that the tax authority will accept the treatment, the entity determines taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates consistently with that treatment; • If it is not probable, the Group reflects the uncertainty using either the most likely amount or the expected value method, depending on which is the most predictive. Judgements and estimates under IFRIC 23 are applied consistently to both current and deferred tax. The Group reassesses these judgements and estimates whenever there is a change in facts and circumstances that might affect the outcome of the tax treatment. (f) Dividends Equity dividends are recognised when they become legally payable. The Company may pay an interim dividend each year. The final dividend becomes legally payable when approved by the shareholders at the next annual general meeting. 139 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (g) Property, plant and equipment Plantations comprise of the cost of planting and development of oil palm and other plantation crops. Costs of new planting and development of plantation crops are capitalised from the stage of land clearing up to the stage of maturity. The costs of immature plantations consist mainly of the accumulated cost of land clearing, planting, fertilising and maintaining the plantation and other indirect overhead costs up to the time the trees are harvestable and to the extent appropriate. Oil palm plantations are considered mature within three to four years after planting and generating average annual CPO of four to six metric tons per hectare. Immature plantations are not depreciated as they are not yet available for use. The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. The land rights are usually renewed without significant cost subject to compliance with the laws and regulations of Indonesia therefore, the Group has classified the land rights as leasehold land. The leasehold land is recognised at cost initially and is not depreciated except the leasehold land in Malaysia which is depreciated over the term of the lease as its renewal cannot be guaranteed. Costs include the initial cost of obtaining the location permits and subsequent payments to compensate existing land owners plus any legal costs incurred to acquire the necessary land exploitation rights. Construction in progress is stated at cost. The accumulated costs will be reclassified to the appropriate class of assets when construction is completed and the asset is ready for its intended use. Construction in progress is also not depreciated until such time when the asset is available for use. Social infrastructure assets, including public-benefit facilities such as schools and other public buildings, are classified as part of the buildings category. Plantations, buildings and oil mills are depreciated using the straight-line method. The yearly rates of depreciation are as follows: Leasehold land in Malaysia - over the term of the lease Plantations: 5% per annum Buildings: 5% to 10% per annum Oil Mill: 5% per annum Estate plant, equipment & vehicles: 12.5% to 50% per annum Office plant, equipment & vehicles: 25% to 50% per annum Although fruit yield varies annually, the straight-line method for plantations is considered appropriate as it reflects a consistent pattern of economic benefits over the productive life of the trees and provides a systematic allocation of cost in accordance with IAS 16. Plantation development costs are capitalised and depreciated over a 20-year useful life, commencing from maturity. As of the reporting date, some plantations have reached the end of their depreciable lives and are fully depreciated, yet remain in use as replanting has not commenced. These plantations continue to generate economic benefits but are carried at nil net book value in accordance with IAS 16 Property, Plant and Equipment, until replanting or disposal. 140 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (h) Leases Land rights are recognised at historical cost without depreciation at the balance sheet date except for leasehold land in Malaysia where it is recognised at historical cost and depreciated over the term of the lease. Right-of-Use Assets The Group recognises right-of-use assets and corresponding lease liabilities for leases in which it is the lessee, mainly for office premises in Malaysia and Indonesia. These are measured at cost and depreciated over the lease term or useful life, whichever is shorter. Refer to Note 21 Leases for further details. Lease Income – Lessor PT United Kingdom Indonesia Plantations, a subsidiary of the Group, acts as a lessor under various operating lease arrangements, including those related to the use of biogas facilities. Lease income from these operating leases is recognised as part of “Other Income” on a straight- line basis over the lease term, in accordance with IFRS 16. Due to the immaterial nature of the income generated from these leases, it is not presented separately in the consolidated statement of profit or loss. In addition, PT Tasik Raja and PT Bina Pitri Jaya, subsidiaries of the Group, have entered into operating lease arrangements for the use of certain biogas-related facilities. These contracts do not include any minimum lease payments and consist entirely of variable lease payments, which are determined based on output or usage metrics. Accordingly, no fixed lease receivables are recognised. Lease income from these arrangements is recognised in the period in which the related output or usage occurs. (i) Inventories Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. In the case of processed produce for sale which comprises palm oil and kernel, cost represents the monthly weighted-average cost of production and appropriate production overheads. Estate and mill consumables are valued on a weighted average cost basis. (j) Biological assets Biological assets comprise an estimation of the fair value less costs to sell of unharvested FFB. The fair value of biological assets is classified as Level 3 in the fair value hierarchy. Net movement in the fair value of biological assets is recognised in the income statement as changes in fair value of biological assets. (k) Financial assets The Group classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was acquired. The Group's accounting policy for each category is as follows: Fair value through profit or loss Investments which are held for strategic gain are carried in the statement of financial position at fair value with changes in fair value recognised in the consolidated statement of income statement in gain or loss arising from fair value. 141 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (k) Financial assets (continued) Amortised cost The Group's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. All the Group's receivables and loans are non-derivative financial assets with cash flows that are solely payments of principal and interest. They are recognised at fair value at inception and subsequently at amortised cost as this is what the Group considers to be most representative of the business model for these assets. Cash and cash equivalents consist of cash in hand and short-term deposits at banks with an original maturity not exceeding three months. Bank overdrafts are shown within loans and borrowings under current liabilities on the statement of financial position. The Group considers a trade receivable or other receivable as credit impaired when one or more events that have a detrimental impact on the estimated cash flow have occurred. Trade and other receivables are written off when there is no expectation of recovery based on the assessment performed. If the receivables are subsequently recovered, these are recognised in the income statement. The Group use three categories for those receivables which reflect their credit risk and how the loss provision is determined for those categories. These include trade receivables using the simplified approach and debt instruments at amortised costs other than trade receivables and financial guarantee contracts using the three-stage approach. (l) Financial liabilities All the Group's financial liabilities are non-derivative financial liabilities. Trade and other payables are shown at fair value at recognition and subsequently at amortised cost. (m) Deferred tax Deferred tax is the expected tax payable or recoverable on temporary differences which arise between the carrying amount of assets and liabilities in the financial statements, and the corresponding tax bases used in the computation of taxable profit and is provided for using the liability method. extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax profit nor the accounting profit. The Group recognises deferred tax liabilities arising from taxable temporary differences on investments in subsidiaries, except where the Group is able to control the reversal of the temporary differences, and it is probable that the temporary difference will not reverse in the foreseeable future. 142 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (m) Deferred tax (continued) Recognition of deferred tax assets is restricted to those instances where it is possible that taxable profit will be available against which the difference can be utilised. Deferred tax assets arising from unused tax losses are recognised only when it is probable that future taxable profits will be available to utilise those losses, with the critical judgment applied as described in note 2(p). (n) Retirement benefits Defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated income statement in the year to which they relate. Defined benefit schemes The Group operates a number of defined benefit schemes which include other long-term employee benefits in respect of its Indonesian operations. The schemes’ surpluses and deficits are measured at: • The fair value of plan assets at the reporting date; less • Plan liabilities calculated using the projected unit credit method discounted to its present value using yields available on Indonesian Government bonds that have maturity dates approximating to the terms of the liabilities; plus • Past service costs; less • The effect of minimum funding requirements agreed with scheme trustees. Remeasurements of the net defined benefit obligation are recognised in other comprehensive income. The remeasurements include: • Actuarial gains and losses; • Return on plan assets (interest exclusive); and • Any asset ceiling effects (interest inclusive). Service costs are recognised in the income statement and include current and past service costs as well as gains and losses on curtailments. Net interest expense/(income) is recognised in the income statement, and is calculated by applying the discount rate used to measure the defined benefit obligation/(asset) at the beginning of the annual period to the balance of the net defined benefit obligation/(asset), considering the effects of contributions and benefit payments during the period. Gains or losses arising from changes to scheme benefits or scheme curtailment are recognised immediately in the income statement. Settlements of defined benefit schemes are recognised in the period in which the settlement occurs. The Group has agreed funding arrangements with the trustees to address the defined benefit scheme deficit, primarily through cash contributions, and actuarial valuations are conducted annually, with the most recent valuation performed as of 31 December 2024. 143 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (o) Financial guarantee contracts Where the Company and its subsidiaries enter into financial guarantee contracts and guarantee the indebtedness of other companies within the Group and/or third-party entities, these are accounted for under IFRS 9. The details of financial guarantee contracts are disclosed in note 27. (p) Critical accounting estimates and judgements The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Judgements • Assessment of de-facto control of cooperatives under Plasma scheme (see note 2(a) and note 14). • Determination of functional currency (see note 2(c)). • Classification of land as leasehold with no depreciation charged (see note 12). • Carrying value of income tax receivables - determination of historic recovery rates (see note 8). • Measurement of plasma receivables (see note 14). • Income taxes and deferred tax - provisions for income taxes in various jurisdictions (see note 8 and note 15). • Recognition of deferred tax on losses - estimate of future profitability of respective entities (see note 15). Estimates and assumptions • Impairment of plantation assets - determination of the discount rate and other assumptions (see note 12). • Expected credit losses (“ECL”) on amounts due from cooperatives under Plasma scheme - determination of possible outcomes and their weighted probability (see note 14). • Valuation of biological assets - oil content of FFB (note 17) • Retirement benefits - actuarial assumptions (see note 22). Fair value measurement - a number of assets and liabilities included in the Group’s financial statements require measurement at, and/or disclosure of, fair value. The fair value measurement of the Group’s financial and non-financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the ‘fair value hierarchy’): - Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and - Level 3 - unobservable inputs for the asset or liability. The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur. 144 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 2 Accounting policies (continued) (p) Critical accounting estimates and judgements (continued) The Group measures the following assets at fair value: - Biological assets (note 17). - Investment (note 13). 3 Revenue Disaggregation of Revenue The Group has disaggregated revenue into various categories in the following table which is intended to: • depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and • enable users to understand the relationship with revenue segment information provided in note 6. CPO and palm Shell Biogas Year to 31 December 2024 kernel FFB Rubber nut products Others Total $000 $000 $000 $000 $000 $000 $000 Contract counterparties Government - - - - 637 - 637 Non-government - Wholesalers 358,745 8,923 112 3,840 - 371,626 6 358,745 8,923 112 3,840 637 372,263 6 Timing of transfer of goods Delivery to customer premises - 8,923 112 - - 9,035 - Delivery to port of departure 74,767 - - - - 74,767 - Customers collect from our mills/estates 283,978 - - 3,840 - 287,818 - Upon generation/others - - - - 637 643 6 358,745 8,923 112 3,840 637 6 372,263 Year to 31 December 2023 Contract counterparties Government - - - - 1,081 - 1,081 Non-government - Wholesalers 357,183 6,784 529 4,844 - 369,354 14 357,183 6,784 529 4,844 1,081 370,435 14 145 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 3 Revenue (continued) Disaggregation of Revenue (continued) CPO and palm Shell Biogas kernel FFB Rubber nut products Others Total $000 $000 $000 $000 $000 $000 $000 Year to 31 December 2023 (continued) Timing of transfer of goods Delivery to customer premises - 6,784 529 - - - 7,313 Delivery to port of departure 77,044 - - - - - 77,044 Customers collect from our mills/estates 280,139 - - 4,844 - - 284,983 Upon generation/others - - - - 1,081 14 1,095 357,183 6,784 529 4,844 1,081 14 370,435 The Group recognised advance receipts of $6,666,000 as disclosed in Note 20 as contract liabilities at the beginning of the period. These contract liabilities primarily relate to advance payments received from customers for goods and services to be delivered in future periods. During the period, these contract liabilities were subsequently recognised as revenue as the Group satisfied the related performance obligations. As part of the review in FY2024, the Group has reclassified $527,000 from Revenue to Other Income for FY2023. This reclassification reflects a more accurate presentation, as the amount pertains to various non-operating items, such as management fees from plasma, asset disposals, or other incidental income, which were previously classified under revenue. Additionally, the FY2023 reconciliation table has been represented to show 'delivery to port of departure' as a new line item, providing more relevant and helpful information. This change improves the transparency of the Group's earnings by clearly distinguishing between core operational revenue and other income sources. As a result, Revenue for FY2023 has decreased by $527,000, and Other Income has increased by $527,000. 4 Finance income and expense 2024 2023 $000 $000 Finance income Interest receivable on: Credit bank balances and time deposits 5,365 7,977 Finance expense Interest payable on: Interest expense in lease liabilities (note 21) (65) (45) Net finance income recognised in income statement 5,300 7,932 146 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 5 Profit before tax 2024 2023 $000 $000 Profit before tax is stated after charging: Purchase of FFB 174,022 160,692 Depreciation (note 12) 18,986 16,400 Impairment losses (note 12) 133 35 Impairment loss on adjustments to fair value of assets held for sale - 1,376 (Reversal)/Provision for expected credit loss (note 18): - continuing operations (9) 331 - discontinued operations - 7 (9) 338 Exchange gains (1,056) (164) Legal and professional fees 1,371 1,426 Staff costs (note 7) 59,266 64,823 Remuneration received by the Group’s auditor or associates of the Group’s auditor: - Audit of parent company 5 5 - Audit of consolidated financial statements 289 299 - Audit of UK subsidiaries 13 13 Total audit services 307 317 Non-audit service - Audit related assurance service (interim review) 13 10 Total audit and non-audit service 320 327 Audit of overseas subsidiaries - Malaysia 27 22 - Indonesia 150 152 Total audit services 177 174 Total auditor’s remuneration 497 501 147 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 6 Segment information Description of the types of products and services from which each reportable segment derives its revenues In the opinion of the Directors, the operations of the Group comprise one class of business which is the cultivation of plantation in Indonesia and Malaysia. From the cultivation of plantation, the Group produced the crude palm oil and associated products such as palm kernel, biogas products and rubber. Factors that management used to identify reportable segments in the Group The reportable segments in the Group are strategic business units based on the geographical spread. Operating segments are consistent with the internal reporting provided to the Board of Directors. The Board of Directors is responsible for allocating resources and assessing the performance of the operating segments. The Board decision is implemented by the Management Committee, that is made up of a Group Chief Executive Officer, Chief Corporate Planning & ESG Officer and Group Accountant in Malaysia, the President Director, the Chief Operating Officer, Finance Director and the Engineering Director in Indonesia. Measurement of operating segment profit or loss, assets and liabilities The Group evaluates segmental performance on the basis of profit or loss before tax calculated in accordance with IFRS. Inter-segment transactions are made based on terms mutually agreed by the parties to maximise the utilisation of Group’s resources at a rate acceptable to local tax authorities. This policy was applied consistently throughout the current and prior period. The Group’s assets are allocated to segments based on geographical location. 148 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 6 Segment information (continued) Total from North Total continuing Sumatera Bengkulu Riau Bangka Kalimantan Indonesia Malaysia UK operations $000 $000 $000 $000 $000 $000 $000 $000 $000 2024 Total sales revenue (all external) - CPO and palm kernel 134,013 96,639 59,405 - 68,688 358,745 - - 358,745 - FFB - - - 3,212 2,821 6,033 2,890 - 8,923 - Rubber 112 - - - - 112 - - 112 - Shell nut 1,281 1,148 1,368 - 43 3,840 - - 3,840 - Biogas products 87 216 - - 334 637 - - 637 - Others - - - - - - 6 - 6 Total revenue 135,493 98,003 60,773 3,212 71,886 369,367 2,896 - 372,263 Profit/(loss) before tax for the year per consolidated income statement 43,663 11,281 13,351 (731) 22,941 90,505 (857) (1,558) 88,090 Interest income 3,569 877 792 3 70 5,311 49 5 5,365 Interest expense (22) - - - - (22) (23) (20) (65) Depreciation (7,281) (3,703) (831) (598) (6,200) (18,613) (277) (96) (18,986) Impairment losses - - - - - - (133) - (133) (Provision)/Reversal for expected credit loss (4) 1 - (1) 13 9 - - 9 Inter-segment transactions 6,354 (2,804) (802) (455) (3,059) (766) 715 51 - Inter-segmental revenue 23,812 2,489 - - 12,899 39,200 - - 39,200 Tax (expense)/credit (11,607) (1,723) (3,066) 268 (4,180) (20,308) (167) (3) (20,478) Total assets 251,963 113,498 40,488 20,079 145,586 571,614 25,259 3,759 600,632 Non-current assets 80,473 52,375 8,171 16,838 105,239 263,096 7,621 453 271,170 Non-current assets - additions 7,021 9,823 1,199 1,576 9,009 28,628 287 208 29,123 Total liabilities (16,096) (11,222) (5,164) (534) (7,624) (40,640) (865) (668) (42,173) 149 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 6 Segment information (continued) Total from North Total continuing South Sumatera Bengkulu Riau Bangka Kalimantan Indonesia Malaysia UK operations Sumatera $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 2023 Total sales revenue (all external) - CPO and palm kernel 120,788 100,998 53,193 - 82,204 357,183 - - 357,183 3,810 - FFB - - - 3,315 1,426 4,741 2,043 - 6,784 - - Rubber 529 - - - - 529 - - 529 - - Shell nut 2,013 1,299 1,479 - 53 4,844 - - 4,844 - - Biogas products 339 350 - - 392 1,081 - - 1,081 - - Others - # - # - - # - # - # 14 - # 14 # 122 Total revenue 123,669 # 102,647 # 54,672 3,315 # 84,075 # 368,378 # 2,057 - # 370,435 # 3,932 Profit/(loss) before tax for the year per consolidated income statement 31,876 15,363 13,432 (90) 19,403 79,984 (890) (1,286) 77,808 (1,947) Interest income 4,392 2,358 1,106 1 47 7,904 69 4 7,977 3 Interest expense (26) - - - - (26) (11) (8) (45) - Depreciation (5,139) (3,561) (854) (488) (6,131) (16,173) (203) (24) (16,400) - Impairment losses - - - - - - (35) - (35) - (Provision)/Reversal for expected credit loss (17) 57 - - (387) (347) - 16 (331) (7) Inter-segment transactions (1,011) (2,310) (6,815) (358) 3,464 (7,030) 533 50 (6,447) 6,447 Inter-segmental revenue 33,790 5,296 - - 10,947 50,033 - - 50,033 2,716 Tax (expense)/credit (Restated) (7,659) (2,619) (1,368) 68 (4,921) (16,499) 17 (5,233) (21,715) (584) 150 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 6 Segment information (continued) Total from North Total continuing South Sumatera Bengkulu Riau Bangka Kalimantan Indonesia Malaysia UK operations Sumatera $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 Total assets (Restated) 231,013 # 107,389 41,794 # 18,951 149,629 548,776 # 10,519 5,478 564,773 # - Non-current assets 85,235 48,846 8,196 16,648 107,574 266,499 7,542 341 274,382 - Non-current assets - additions 9,792 10,612 1,100 1,945 10,041 33,490 496 365 34,351 - Total liabilities (Restated) (17,401) (10,938) (4,006) (310) (10,256) (42,911) (606) (641) (44,158) - The details of prior year restatements are disclosed in note 32. * South Sumatera represents the operations which have been discontinued and have therefore been separated from the continuing operations. The details of discontinued operations for South Sumatera are disclosed in note 9. # A reclassification of certain revenue amounts to other income, totalling $527,000, was made for the year ended 31 December 2023. Further details are provided in Note 3, which also includes the reclassification of plasma from non-current to current receivables, the correction of deferred tax on temporary differences, and the reversal of an immaterial provision, as disclosed in Note 32. Below is an analysis of revenue from the Group’s top 4 customers, incorporating all those contributing greater than 10% of the Group’s external revenue in accordance with the requirements of IFRS 8. In year 2024, revenue from top 4 customers of the Indonesian segment represents approximately $165.8m (2023: $194.2m) of the Group’s total revenue for continuing operations. Although Customer 1 to 4 made up over 10% of the Group’s total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis involving numerous other potential customers. Three of the top four customers were the same as in the prior year. North Total Sumatera Bengkulu Riau Bangka Kalimantan Indonesia Malaysia UK Total $000 $000 $000 $000 $000 $000 $000 $000 $000 2024 Customer 1 14,772 19,944 20,968 - 28,948 84,632 - - 84,632 Customer 2 - 31,809 - - - 31,809 - - 31,809 Customer 3 26,392 6 - - - 26,398 - - 26,398 Customer 4 14,943 - 7,973 - - 22,916 - - 22,916 56,107 51,759 28,941 - 28,948 165,755 - - 165,755 151 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 6 Segment information (continued) North Total Sumatera Bengkulu Riau Bangka Kalimantan Indonesia Malaysia UK Total $000 $000 $000 $000 $000 $000 $000 $000 $000 2023 Customer 1 - 15,001 25,203 - 24,565 64,769 - - 64,769 Customer 2 - 53,607 - - - 53,607 - - 53,607 Customer 3 41,735 1,362 - - - 43,097 - - 43,097 Customer 4 32,738 - - - - 32,738 - - 32,738 74,473 69,970 25,203 - 24,565 194,211 - - 194,211 % % % % % % % % % 2024 Customer 1 4.0 5.4 5.6 - 7.8 22.8 - - 22.8 Customer 2 - 8.5 - - - 8.5 - - 8.5 Customer 3 7.1 - - - - 7.1 - - 7.1 Customer 4 4.0 - 2.1 - - 6.1 - - 6.1 15.1 13.9 7.7 - 7.8 44.5 - - 44.5 2023 Customer 1 - 4.0 6.8 - 6.6 17.4 - - 17.4 Customer 2 - 14.5 - - - 14.5 - - 14.5 Customer 3 11.3 0.4 - - - 11.7 - - 11.7 Customer 4 8.8 - - - - 8.8 - - 8.8 20.1 18.9 6.8 - 6.6 52.4 - - 52.4 Save for a small amount of rubber, all the Group’s operations are devoted to oil palm. The Group’s report is by geographical area, as each area tends to have different agricultural conditions. 152 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 7 Employees' and Directors' remuneration 2024 2023 Number Number Average numbers employed (primarily overseas) during the year: - full-time 7,486 7,515 - part-time field workers 7,954 7,812 15,440 15,327 2024 2023 $000 $000 Staff costs (including discontinued operations) comprise: Wages and salaries 53,622 57,173 Social security costs 3,798 4,058 Retirement benefit costs - United Kingdom - - - Indonesia 1,776 3,543 - Malaysia 70 49 59,266 64,823 The information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 contained in the Directors’ Remuneration Report on page 42 and the labelled information on page 44 has also been audited. 2024 2023 $000 $000 Directors’ emoluments 444 321 2024 2023 $000 $000 Remuneration expense for key management personnel comprise: Short-term employee benefits 2,478 2,170 Post-employment benefits - - 2,478 2,170 The Executive Director, Non-Executive Directors and senior management (general managers and above) are considered to be the key management personnel. The remuneration of Executive Director and Non-Executive Directors is shown on page 42. No short-term employee benefits have been provided to the Directors. 153 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 8 Tax expense (Restated) 2024 2023 $000 $000 Foreign corporation tax - current year 18,163 19,450 Foreign corporation tax - prior year 828 308 Deferred tax adjustment - reversal of temporary differences (note 15) 1,628 1,904 Deferred tax - prior year (note 15) (141) 53 Total tax charge for year 20,478 21,715 Corporation tax rate in Indonesia is at 22% (2023: 22%) whereas Malaysia is at 24% (2023: 24%). The standard rate of corporation tax in the UK for the current year is 25% (2023: 23.5%). The Group’s charge for the year differs from the standard Indonesian rate of corporation tax as explained below: (Restated) 2024 2023 $000 $000 Profit before tax from continuing operations 88,090 77,808 Profit before tax multiplied by standard rate of Indonesia corporation tax of 22% (2023: 22%) 19,380 17,118 Effects of: Irrecoverable withholding tax 782 5,183 Group accounting adjustments not subject to tax (136) 1,154 Expenses not allowable for tax 860 970 Deferred tax assets not recognised 89 84 Income not subject to tax (1,184) (1,737) Under provision of prior year income tax 828 308 Utilisation of tax losses not previously recognised - (1,418) Under provision of prior year deferred tax (141) 53 Total tax charge for year 20,478 21,715 The above reconciliation has been prepared by reference to the Indonesian tax rate rather than the UK tax rate as, in accordance with IAS 12, this is the applicable tax rate that provides the most meaningful information, given this is the country in which the majority of tax arises. The provision for tax expenses under Foreign corporation tax - current year in 2023 has been restated from $17,760,000 to $19,450,000, and the deferred tax adjustment has changed from $2,049,000 to $1,904,000 due to the restatement of deferred tax assets. The restatement relates to the non-recognition of deferred tax assets in respect of tax losses, as well as the deferred tax impact of group-level adjustments. As a result, additional tax expense has been recorded from $20,170,000 to $21,175,000. Please refer to Note 32 for details of the prior year adjustments. 154 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 8 Tax expense (continued) The tax receivables represent the corporate income tax (“CIT”) and value added tax (“VAT”) that have yet to be refunded by the Indonesia tax authority. The tax receivables relating to CIT arose due to over payment of tax. The tax receivables relating to VAT as shown in the table below under other taxes arose because the majority of the Groups’ CPO was sold to bonded zones which do not attract output VAT whilst input VAT on purchases is claimable. Upon submission of a tax return (for CIT) or a request letter (for VAT refund), a tax audit will be conducted by the tax authority and whilst every effort is made to resolve this quickly, the process can sometimes take more than 12 months. The breakdown of the tax receivables and tax liabilities is as follows: (Restated) 2024 2023 $000 $000 Tax Receivables Income tax 18,316 17,497 Other taxes 43,749 40,575 62,065 58,072 Tax Liabilities Income tax (5,466) (2,951) Other taxes (1,201) (1,184) (6,667) (4,135) Critical judgement on carrying value of income tax receivables and provision for income taxes Management has exercised significant judgement in determining the recoverability of income tax receivables, which mainly comprise long-outstanding claims from the Indonesian tax authority. Given the prolonged settlement timeline and uncertainty around the outcome, the Group assessed these balances based on historical recovery trends, legal interpretations, and advice from local tax advisors. Where recovery is uncertain, a provision has been made. Judgement is also applied in estimating provisions for income tax liabilities, reflecting potential exposures from differing interpretations of tax laws in various jurisdictions. Changes in assumptions or tax developments could materially impact these balances. 9 Assets held for sale and discontinued operations PT Riau Agrindo Agung, PT Karya Kencana Sentosa Tiga and PT Empat Lawang Agro Perkasa (“South Sumatera Plantations”), subsidiaries of the Group, had on 5 July 2023, completed the disposal of its entire 100% equity interest to Mrs Lina (also known as Liena Efendy) and Miss Lenny Nurimba for a total cash consideration of $8,500,000. The entire operations of the disposal group are presented within the South Sumatera operating segment disclosed in Note 7 and represent a separate geographical area of operations. The activities for the financial year ended 31 December 2023 have been classified as discontinued operations in the consolidated income statement as a single line. 155 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 9 Assets held for sale and discontinued operations (continued) The post-tax loss on disposal of discontinued operations was determined as follows: 2023 Note $000 Discontinued operations Revenue 6 3,932 Cost of sales (5,707) Changes in fair value of biological assets (111) Gross loss (1,886) Administration expenses (56) Impairment loss 12 - Provision for expected credit loss 18 (7) Operating loss (1,949) Exchange loss (1) Finance income 3 Finance expense - Loss before tax 6 (1,947) Tax expense (584) Loss for the year from discontinued operations (2,531) Impairment loss on adjustment to fair value (1,376) Recycling of foreign exchange on disposal 10,431 6,524 Attributable to: - Owners of the parent 3,807 - Non-controlling interests 2,717 6,524 Earnings per share attributable to the owners of the parent during the year - Basic and diluted EPS 9.62cts 156 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 9 Assets held for sale and discontinued operations (continued) Statement of cash flows The statement of cash flows includes the following amounts relating to discontinued operations: 2023 $000 Operating activities (1,808) Investing activities (1,786) Financing activities - Net decrease in cash and cash equivalents from discontinued operations (3,594) The following major classes of assets relating to the discontinued operations have been classified as held for sale in the consolidated statement of financial position before their respective dates of disposal: 2023 $000 Property, plant and equipment 26,017 Impairment loss on adjustment to fair value (26,017) Property, plant and equipment net of impairment losses - Non-current receivables 5,763 Impairment loss on adjustment to fair value (230) Non-current receivables net of impairment losses 5,533 Deferred tax assets 2,821 Inventories 108 Income tax receivable 35 Biological assets - Trade and other receivables 3 Exchange differences - Total assets held for sale 8,500 In 2023, an accumulated impairment loss of $26,247,000 on the measurement of the disposal group to fair value less cost to sell has been recognised and was included in discontinued operations. The difference of impairment loss was due to exchange in translation and further impairment of $1,376,000 in 2023. The fair value is based on the actual selling price. They are categorised as level 3 non-recurring fair value measurements. The fair value measurement is based on the above items’ highest and best uses, which do not differ from their actual use. 157 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 9 Assets held for sale and discontinued operations (continued) Statement of cash flows (continued) Details of the assets, liabilities and net cashflow arising from the disposal of the subsidiaries are as follows: 2023 $000 Consideration received 8,500 Property, plant and equipment net of impairment losses - Non-current receivables 5,533 Deferred tax assets 2,821 Inventories 108 Income tax receivable 35 Trade and other receivables 3 Net assets disposed 8,500 Gain before reclassification adjustment - Recycling of foreign exchange on disposal 10,431 Gain on disposal of the subsidiaries 10,431 Consideration received 8,500 Less: cash and cash equivalents in the subsidiaries - Net cash inflow from disposal of subsidiaries 8,500 10 Earnings per ordinary share (“EPS”) (Restated) 2024 2023 $000 $000 Earnings used in basic and diluted EPS Total operations 67,514 53,225 Continuing operations 67,514 49,418 Discontinued operations - 3,807 158 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 10 Earnings per ordinary share (“EPS”) (continued) (Restated) 2024 2023 Number Number ‘000 ‘000 Weighted average number of shares in issue in the year - used in basic EPS 39,510 39,560 - dilutive effect of outstanding share options - - - used in diluted EPS 39,510 39,560 Basic and diluted EPS Total operations 170.88cts 134.54cts Continuing operations 170.88cts 124.92cts Discontinued operations - 9.62cts The details of prior year restatement are disclosed in note 32. 11 Dividends 2024 2023 $000 $000 Paid during the year Final dividend of 15.0cts per ordinary share for the year ended 31 December 2023 (2022: 25.0cts) 5,923 9,909 Interim dividend of 15.0cts per ordinary share for the year ended 31 December 2024 (2023: 15.0cts) - 5,945 Proposed final dividend of 51.0cts per ordinary share for the year ended 31 December 2024 (2023: 15.0cts) 20,139 5,923 The proposed dividend for 2024 is subject to shareholders’ approval at the forthcoming annual general meeting and has not been included as a liability in these financial statements. 159 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 12 Property, plant and equipment Estate Office plant, plant, Right Leasehold equipment equipment -of-use Construction Plantations Mill land Buildings & vehicle & vehicle assets # in progress Total $000 $000 $000 $000 $000 $000 $000 $000 $000 Cost At 1 January 2023 185,446 73,587 49,803 57,262 16,109 1,926 883 19,232 404,248 Exchange translations 3,062 1,506 345 1,036 209 (1) (5) 302 6,454 Reclassification - 25 - 5,531 3 (9) - (5,550) - Additions 4,430 5,935 2,159 419 1,580 439 1,160 9,862 25,984 Development costs capitalised 7,545 - 819 - 3 - - - 8,367 Disposals (161) (210) - - (144) (157) - - (672) Written off (1,556) (1,589) (3) (277) (498) (77) (466) - (4,466) At 31 December 2023 198,766 79,254 53,123 63,971 17,262 2,121 1,572 23,846 439,915 Exchange translations (8,628) (4,111) (1,770) (2,977) (692) (57) (4) (719) (18,958) Reclassification - 21,757 - 5,793 47 - - (27,597) - Additions 348 3,964 2,641 477 1,644 464 82 8,039 17,659 Development costs capitalised 11,464 - - - - - - - 11,464 Disposals (1,344) (1,352) - - (121) (26) - - (2,843) Written off (2,431) (1,150) (3) (528) (984) (81) - - (5,177) At 31 December 2024 198,175 98,362 53,991 66,736 17,156 2,421 1,650 3,569 442,060 160 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 12 Property, plant and equipment (continued) Estate Office plant, plant, Right Leasehold equipment equipment -of-use Construction Plantations Mill land Buildings & vehicle & vehicle assets # in progress Total $000 $000 $000 $000 $000 $000 $000 $000 $000 Accumulated depreciation and impairment At 1 January 2023 75,606 31,928 3,809 26,167 12,353 1,088 883 - 151,834 Exchange translations 860 628 (113) 442 139 (11) - - 1,945 Reclassification - 8 - - (8) - - - - Charge for the year 7,593 4,009 114 3,066 1,313 112 193 - 16,400 Impairment losses - - - - 35 - - - 35 Disposal - (139) - - (128) (139) - - (406) Written off (1,525) (1,554) - (164) (486) (80) (466) - (4,275) At 31 December 2023 82,534 34,880 3,810 29,511 13,218 970 610 - 165,533 Exchange translations (3,196) (1,682) 52 (1,339) (503) (17) - - (6,685) Reclassification - (18) - 4 14 - - - - Charge for the year 7,761 6,092 113 3,146 1,308 267 299 - 18,986 Impairment losses - - - 67 1 - 65 - 133 Disposal (882) (1,327) - - (120) (22) - - (2,351) Written off (2,289) (1,037) - (381) (941) (78) - - (4,726) At 31 December 2024 83,928 36,908 3,975 31,008 12,977 1,120 974 - 170,890 Carrying amount At 31 December 2022 109,840 41,659 45,994 31,095 3,756 838 - 19,232 252,414 At 31 December 2023 116,232 44,374 49,313 34,460 4,044 1,151 962 23,846 274,382 At 31 December 2024 114,247 61,454 50,016 35,728 4,179 1,301 676 3,569 271,170 # Right-of-use assets had been disclosed in note 21. * As part of the FY2024 review, the Group has reclassified the cost and net book value as of 1 January 2023, amounting to $2,246,000, from mills into construction in progress. This reclassification provides a more accurate representation of the assets, with no impact on the net book value of property, plant, and equipment. Accordingly, the balances as of 31 December 2023 have also been reclassified, transferring $2,246,000 from mills to construction in progress. 161 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 12 Property, plant and equipment (continued) The average capitalisation rate of borrowing costs was 0% (2023: 0%) as there were no borrowings in either 2024 or 2023 from which borrowing costs could be capitalised. The estates included $nil (2023: $nil) of interest and $2,458,000 (2023: $412,000) of overheads capitalised during the year in respect of expenditure on estates under development. The Indonesian authorities have granted certain land exploitation rights and operating permits for the estates. In the case of established estates in North Sumatera, these rights and permits expire between 2026 and 2058 with rights of renewal thereafter. As of estates in Bengkulu land titles were issued between 1994 and 2016 and the titles expire between 2028 and 2051 with rights of renewal thereafter for two consecutive periods of 25 and 35 years respectively. In Riau, land titles were issued in 2003 and expire in 2033 with rights of renewal thereafter. In Kalimantan, land titles were issued between 2015 and 2019 and expire between 2049 and 2054 with rights of renewal thereafter. In Bangka, land titles were issued in 2018 and expire in 2053. Critical judgement on classification of land as leasehold with no depreciation charge Subject to compliance with the laws and regulations of Indonesia, land rights are usually renewed. The cost of renewing the land rights is not significant. On the basis that the Group has an indefinite right to renew, leasehold land is not depreciated except leasehold land in Malaysia. The land title of the estate in Malaysia is a long-term lease expiring in 2084. Critical estimate on impairment of plantation assets In accordance with IAS 36, management assesses indicators of impairment at each reporting date. These indicators include historical production levels, comparisons between historical and forecasted CPO and FFB prices, average historical and forecasted EBITDA, and the expected recovery period of the CGU’s carrying amount. An impairment loss of $133,000 (2023: $35,000) related to building and right-of-use asset in Malaysia was provided for 2024 as the recoverable amounts based on its value-in-use were lower than the carrying amounts and the reason of acquisition of the plant and equipment was for corporate social responsibility purposes. The recoverable amounts are $nil (2023: $nil) as the subsidiary in Malaysia is making losses. Impairment for cash generating units (“CGUs”) is measured by comparing their carrying amount with their recoverable amount, which is the higher of the fair value less cost to sell or their value in use. The impairment assessment is performed against the combined cost of PPE and other working capital for each company, which represents the CGUs, except Alno, which has been split into 2 CGUs as Alno and Sumindo. This is because the plantations within each company are located in close proximity and share similar soil and climate conditions, as well as interdependent assets, thereby operating as a single cash-generating unit. The recoverable amount has been determined based on value in use calculations. However, where value in use could not be reliably measured, management has determined recoverable amount based on fair value less costs of disposal, using a price per hectare approach. For this purpose, management engaged an external expert to assist in the valuation. Based on the assessment carried out by management, no impairment has been recognised in 2024 in respect of land and plantations in Indonesia (2023: $nil). 162 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 12 Property, plant and equipment (continued) The value in use for certain CGUs, including Alno and HPP, have been determined by management using a discounted cash flow (“DCF”) model. Projected future cash flows are assessed over the expected economic life of the assets, which ranges from 13 to 25 years, and discounted at 12.2% (2023: 13.5%). These projections are based on historical data, industry performance, economic conditions, and other available information, including the impact of climate change. For remaining CGUs, including KAP, BML, Sumindo, MPM valuations have been performed using market comparisons conducted by independent valuers, MV Valuers from Malaysia. These valuations take into account prevailing market conditions, recent transactions, and other relevant industry benchmarks. Compliance with changing regulations, changes in buyer preferences, development of new products and use of lower emission sources of energy will affect the FFB production, CPO price and its growth. Heavy rainfall & flooding, droughts and fires will have an effect on company specific risk within the calculation of our discount rate as well as potential impacts on the ability of our plants to produce FFB. Pests & disease will impact the upkeeping cost. The key assumptions have been identified as the CPO CIF-Rotterdam price, the pre-tax discount rate and the inflation rate. Based on sensitivity analysis performed, there are no reasonably possible changes in these assumptions which would have a material impact on impairment. 13 Investment Investment analysed as: 2024 2023 $000 $000 Non-current 5,111 10,035 Current 23,976 - 29,087 10,035 The movement of the fair value through profit and loss investment as following: 2024 2023 $000 $000 1 January 10,035 42 Additions 45,990 9,948 Disposal (28,069) - Change in fair value recognised in profit and loss 1,131 45 31 December 29,087 10,035 163 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 13 Investment (continued) Fair value through profit and loss financial assets includes the following: 2024 2023 $000 $000 Quoted: Equity securities – United Kingdom 27 27 Bonds - Indonesia 18,014 - Treasury Bills – United States 5,962 - Unquoted: Investment portfolio - Luxembourg 5,084 10,008 29,087 10,035 Fair value through profit and loss financial assets are denominated in the following currencies: 2024 2023 $000 $000 Currency Sterling 27 27 US Dollar 29,060 10,008 29,087 10,035 The fair value of investment for quoted equity securities is classified as Level 1 in the fair value hierarchy and fair value of investment for unquoted investment portfolio is classified as Level 2. The valuation inputs for quoted equity securities are obtained from the active market while for unquoted investment portfolio is obtained from the custodian bank. For investment portfolios subject to capital protection arrangements, where the fair value was below the original cost in 2023, the Group historically recognised these investments at cost, relying on the capital protection feature to guarantee recovery of the initial investment amount. In 2024, the fair value of the investment portfolio has risen above cost. 14 Receivables: non-current 2024 2023 $000 $000 Due from cooperatives under Plasma scheme Current (note 18) 2,278 2,689 Non-current 19,363 17,617 21,641 20,306 164 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 14 Receivables: non-current (continued) Critical judgement on de-facto control of cooperative under Plasma scheme Plasma scheme is an initiative by the Indonesian Government that mandated plantation owners to allocate a percentage of their land acquired to the surrounding community and to further provide financial and technical assistance to cultivate oil palm on that land to improve the income and welfare of the community or cooperatives. The Group does not have de facto control or significant influence over the decision-making processes of the cooperatives. Refer to Note 2(a) for further details. The Group makes finance available to its associated co-operatives under Plasma scheme, covering both the immature stage of initial plantings and working capital needs for mature areas. Furthermore, the Group provides financial guarantees for certain bank loans outstanding amounting to $0.3 million (2023: $0.9 million), as disclosed in Note 27. Throughout the year, certain subsidiary companies collectively funded Plasma with a gross amount of $22,105,000 (2023: $20,788,000) before ECL, recoverable from the cooperatives. Details on ECL are provided in note 18. The Group incurred additional capital expenditure of $5,010,000 in FY2024 (2023: $4,894,000) and received repayments of $2,689,000 in 2024 through the sale of FFB from the cooperative (2023: $1,921,000). Critical judgement on measurement of plasma receivables All balances due from cooperatives under the Plasma scheme, including those related to immature areas, are repayable on demand as there are no formal terms in place. However, the Group may grant extended financing periods at its discretion. The directors consider that the carrying amount due from cooperatives under Plasma scheme closely approximates their fair value. There is no discounting applied to these amounts, as they are repayable on demand. The amounts due are classified between the portions that are current and non-current. The non-current portion relates to the amounts that are not expected to be settled or recovered within 12 months from the reporting date. Prior year reclassification During the financial year ended 31 December 2024, the Group undertook a review of the classification of receivables due from cooperatives under the plasma scheme. Following this reassessment, the Group determined that certain amounts previously presented as non-current assets in the statement of financial position as at 31 December 2023 should be more appropriately classified as current assets, given that these receivables were settled during 2024. As a result, the Group retrospectively reclassified $2,689,000 and $1,921,000 from non-current assets to current assets in FY2023 and FY2022, respectively. This change reflects a reclassification in presentation and does not constitute a correction of an error under IAS 8. The reclassification has no impact on total assets, net profit, or retained earnings in either the current or prior year. 15 Deferred tax The movement on the deferred tax account as shown below: (Restated) 2024 2023 $000 $000 At 1 January 1,313 3,146 Recognised in income statement from continuing operations (1,487) (1,957) Recognised in other comprehensive income (95) 93 Exchange differences (56) 31 At 31 December (325) 1,313 165 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 15 Deferred tax (continued) The deferred tax assets as at 1 January 2023 have been restated from $12,026,000 to $3,146,000, and the amount recognised in the income statement from continuing operations has been revised from $2,102,000 to $1,957,000. These adjustments reflect the restatement of deferred tax assets related to tax losses and the recognition of deferred tax assets arising from other temporary differences. Further details are provided in Note 32. The most significant movement in deferred tax was due to the utilisation of some of the losses against taxable profits during the year. The deferred tax asset and liability, together with the amounts recognised in income statement and other comprehensive income are detailed as follows: (Charged)/ credited (Charged)/ to income credited to Asset Liability Net statement equity $000 $000 $000 $000 $000 2024 Impairment of land 159 - 159 - - Retirement benefits 2,036 - 2,036 299 (95) Biological assets - (1,757) (1,757) (630) - Unutilised tax losses 1,152 - 1,152 417 - Unremitted earnings - (1,360) (1,360) - - Other temporary differences 638 (1,193) (555) (1,573) - Tax assets/(liabilities) 3,985 (4,310) (325) (1,487) (95) Set off of tax (2,085) 2,085 - - - Net tax assets/(liabilities) 1,900 (2,225) (325) (1,487) (95) 2023 (Restated) Impairment of land 167 - 167 - - Retirement benefits 1,920 - 1,920 305 93 Biological assets - (1,193) (1,193) 192 - Unutilised tax losses 779 - 779 (572) - Unremitted earnings - (567) (567) - - Other temporary differences 573 (366) 207 (1,882) - Tax assets/(liabilities) 3,439 (2,126) 1,313 (1,957) 93 Set off of tax (1,313) 1,313 - - - Net tax assets/(liabilities) 2,126 (813) 1,313 (1,957) 93 The deferred tax assets of unutilised tax losses have been restated from $10,331,000 to $779,000 as well as charge to income statement restated from $2,262,000 to $572,000. The deferred tax assets related to other temporary differences have been restated from nil to $573,000. In addition, the charge to the income statement has been restated by $1,545,000, increasing from $337,000 to $1,882,000. Further details are provided in Note 32. 166 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 15 Deferred tax (continued) 2024 2023 $000 $000 A deferred tax asset has not been recognised for the following items: Unutilised tax losses 30,721 21,206 Critical judgement on deferred tax on losses The Group had recognised tax assets arising from the unutilised tax losses of certain subsidiaries as the Group believes that the tax assets of these subsidiaries can be realised in the future periods based on their budget, as their respective plantation assets becoming more mature and historically resulting in the companies becoming profitable. However, the Group does not recognise the tax losses in certain companies within the Group as tax assets in UK and Malaysia as the future recoverability of losses of these companies cannot be certain and insufficient forecast future taxable profits. The time limit on utilisation of tax losses is subject to the tax laws in various countries. As of 31 December 2024, the relevant time limits are 5 years in Indonesia, 7 years in Malaysia and unlimited in UK. At 31 December 2024, all unutilised tax losses were recognised in Indonesia. The unutilised tax losses will expire as per below: Year $000 2025 316 2027 333 2028 94 2029 409 1,152 At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised was $839,135,000 (2023: $845,774,000). No liability has been recognised in respect of these differences because either the Group is in a position to control the timing of the reversal of the temporary differences and does not expect such a reversal to occur in the foreseeable future, or such a reversal would not give rise to an additional tax liability. The deferred tax liability on unremitted earnings recognised at the balance sheet date was related to the estimated dividend declared for 2024 by the subsidiaries. 16 Inventories 2024 2023 $000 $000 Estate and mill consumables 6,902 9,443 Processed produce for sale 11,865 7,241 18,767 16,684 167 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 16 Inventories (continued) The movement on the inventories as shown below: 2024 2023 $000 $000 As at 1 Jan 16,684 19,590 Purchase of FFB 174,022 160,317 Labour and production overheads 115,468 127,693 Total purchase production cost 289,490 288,010 Less: cost of sales recognised in income statement (286,583) (291,553) Reversal of inventory write-down - 210 Exchange differences (824) 427 18,767 16,684 During the financial year, inventories recognised as an expense amounted to $286,583,000 (2023: $291,553,000). This includes the cost of raw materials (including purchases of Fresh Fruit Bunches), direct labour, and production overheads related to inventories sold during the year. In FY2023, it also includes reversals of such write-downs that were recognised in previous periods. 17 Biological assets 2024 2023 $000 $000 At 1 January 5,419 6,161 Changes in fair value less cost to sell 165,924 146,616 Decreases due to harvest (162,982) (147,491) Fair value gain/(loss) recognised in the income statement for continuing operations 2,942 (875) Exchange translations (304) 133 At 31 December 8,057 5,419 Critical estimate on valuation of biological assets The estimation in respect of FFB prior to harvest is based on the market price of FFB in each of the Group’s locations on 31 December, less the cost of harvesting and transport to mill. The market price is applied to a weight of FFB. This weight derives from the assumption that value accrues exponentially to FFB from the increase in oil content in the two weeks prior to harvest: in terms of tonnage at any given month end, equivalent to 50% of the following month’s crop. The fair value of biological assets is classified as Level 3 in the fair value hierarchy. During the year, all of the opening balance of biological assets was harvested while all of the closing balance arose in the year due to movements in fair value less costs to sell. The gain or loss recognised in the income statement represents the net movement in the fair value of biological assets during the year. 168 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 17 Biological assets (continued) The valuation techniques and significant unobservable inputs used in determining the fair value measurement of biological assets, as well as the inter-relationship between key unobservable inputs and fair value, are set out in the table below: Valuation Inter-relationship between key Item approach Inputs used unobservable inputs and fair value Biological assets Based on FFB FFB weight The higher the weight, the higher the - Unharvested weight multiplied fair value produce by the sum of FFB selling price less FFB selling price The higher the selling price, the harvesting cost higher the fair value Harvesting cost The higher the harvesting cost, the lower the fair value The key assumptions are considered to be the computation of oil content of FFB based on research studies, selling price less harvesting costs and FFB production and a decrease of 1% in any of these would result in an $81,000 decrease in the valuation. 18 Trade and other receivables 2024 2023 $000 $000 Trade receivables 458 1,040 Other receivables 852 4,752 Prepayments and accrued income 3,474 4,897 Due from cooperatives under Plasma scheme (note 14) 2,278 2,689 7,062 13,378 The carrying amount of trade and other receivables classified as amortised cost approximates fair value. Trade receivables The Group applies the IFRS 9 simplified approach to measure ECL using a lifetime ECL provision for trade receivables. To measure ECL on a collective basis, trade receivables are grouped based on similar credit risk and age. The expected loss rate is based on a combination of the Group’s historical credit losses experienced over the 5-year period prior to the year end and forward-looking information on macroeconomic factors affecting the Group’s customers. The ECL has been calculated at 1% on trade receivables balances. Other receivables The Group assesses the ECL associated with its debt instruments carried at amortised cost on a forward-looking basis using the three-stage approach. The impairment methodology applied depends on whether there has been a significant increase in credit risk. 169 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 18 Trade and other receivables (continued) The Group considers the probability of default upon initial recognition of an asset and whether there has been significant increase in credit risk on an on-going basis at each reporting date. To assess whether there is a significant increase in credit risk, the Group compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Group considers available, reasonable and supportable forward-looking information, such as: - internal credit rating; - external credit rating (as far as available); - actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the debtor’s ability to meet its obligation; - significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements; and - significant changes in the expected performance or behaviour of the debtor, including changes in the payment status of the debtor. There has not been a significant increase in credit risk since initial recognition on any of the group’s financial assets therefore 12-month ECL have continued to be recognised on all balances other than trade receivables which are discussed above. Critical estimate of ECL on amount due from cooperatives under Plasma scheme The Group assesses the ECL on amounts due from cooperatives under Plasma scheme by considering various probability weighted outcomes. The possible outcome is considered to be: - recovery is limited to the future cashflows of the cooperative, being the FFB revenue less development costs; and - recovery in full via bank financing obtained by the cooperative. Prior year reclassification During the financial year ended 31 December 2024, the Group reassessed the classification of amounts due from cooperatives under the plasma scheme between current and non-current assets. The Group has retrospectively reclassified $2,689,000 from non-current assets to current assets in the financial statements for FY2023, as the amounts were received in FY2024. This reclassification has no impact on total assets, net income, or retained earnings, and reflects the appropriate classification of the receivables for both FY2023 and FY2024, as detailed in note 14. The amounts due from cooperative under plasma scheme are classified between the portions that are current and non-current. The non-current portion relates to the amounts that are not expected to be settled or recovered within 12 months from the reporting date. Movements on the Group’s loss provision on current, non-current other receivables and financial guarantee contracts are as follows: 2024 2023 $000 $000 At 1 January 508 1,622 Loss provision during the year (9) 331 Written off during the year - (1,441) Exchange difference (23) (4) At 31 December 476 508 170 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 18 Trade and other receivables (continued) At 31 December 2024, the expected loss provision for receivables is as follows: Gross Net carrying Loss carrying amount provision amount $000 $000 $000 2024 Trade receivable 462 (4) 458 Other receivables 857 (5) 852 Receivables: non-current (note 14) - Due from cooperatives under Plasma scheme 22,105 (464) 21,641 23,424 (473) 22,951 Financial guarantee contracts (note 27) - (3) (3) 23,424 (476) 22,948 Gross Net carrying Loss carrying amount provision amount $000 $000 $000 2023 Trade receivables 1,051 (11) 1,040 Other receivables 4,758 (6) 4,752 Receivables: non-current (note 14) - Due from cooperatives under Plasma scheme 20,788 (482) 20,306 26,597 (499) 26,098 Financial guarantee contracts (note 27) - (9) (9) 26,597 (508) 26,089 19 Notes supporting statement of cash flows Cash and cash equivalents for purposes of the statement of cash flows comprised: 2024 2023 $000 $000 Cash at bank available on demand 103,866 92,682 Short-term deposits 77,988 60,289 Cash in hand 54 13 As reported in statement of financial position 181,908 152,984 Short-term investments 1,253 14,076 183,161 167,060 The short-term with licensed banks refer to the fixed deposits with original maturity of more than three months but less than one year. An amount of $108,000, included within cash and cash equivalents, has been pledged as collateral for a loan facility granted to a cooperative under the plasma scheme, and is secured by Bank Syariah Mandiri, as disclosed in Note 27. While the amount remains classified as cash and cash equivalents, it is subject to a pledge and is not freely available for use. 171 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 19 Notes supporting statement of cash flows (continued) Significant non-cash transactions from investing activities are as follows: 2024 2023 $000 $000 Property, plant and equipment purchased but not yet paid at year end 81 53 Repayment of amounts due from cooperatives under the plasma scheme through the purchase of FFB (restated) 2,689 1,921 Increase in receivables from cooperatives under plasma scheme (5,010) (4.894) The repayment of amounts due from cooperatives under the plasma scheme, recognised through the sale of FFB, has been restated from $6,776,000 to $1,921,000. The previously reported amount included 100% of FFB sales from plasma cooperatives to the Group; however, only 30% of these sales represented actual repayments to the Group. The increase in receivables from cooperatives under the plasma scheme represents financing for new planting, development of immature plantation areas, land cost, and other charges for which the group expects to be reimbursed. Non-cash transactions from financing activities are shown in the reconciliation of liabilities from financing transactions as follows: Non-current Current lease lease liabilities liabilities Total $000 $000 $000 At 1 January 2024 (709) (300) (1,009) Cash Flows - 405 405 Non-cash flows - Effect of foreign exchange - (9) (9) - New lease (25) (57) (82) - Lease liabilities classified as non-current at 31 December 2023 becoming current during 2024 281 (281) - - Interest accruing during the year - (65) (65) (453) (307) (760) Non-current Current lease lease liabilities liabilities Total $000 $000 $000 At 1 January 2023 (31) (73) (104) Cash Flows - 288 288 Non-cash flows - Effect of foreign exchange 1 3 4 - New lease (709) (443) (1,152) - Lease liabilities classified as non-current at 31 December 2022 becoming current during 2023 30 (30) - - Interest accruing during the year - (45) (45) (709) (300) (1,009) 172 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 20 Trade and other payables (Restated) 2024 2023 $000 $000 Trade payables 6,900 9,572 Other payables 442 1,041 Advance receipts 4,637 6,666 Accruals 9,424 9,583 21,403 26,862 The trade and other payables have been restated from $27,456,000 to $26,862,000, relating to the reversal of accruals amounting to $594,000. Further details are provided in Note 32. The carrying amount of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value. Advance receipts from customers are expected to be recognised in full as revenue in the subsequent year. The advance receipts at 31 December 2023 have been recognised in revenue in the current period. 21 Leases 2024 2023 $000 $000 Lease liabilities analysed as: Non-current (453) (709) Current (307) (300) (760) (1,009) The weighted average incremental borrowing rate per annum was 7.6% (2023: 7.3%). Maturity analysis for the lease liabilities has been given in note 28. Amounts recognised in income statement: 2024 2023 $000 $000 Depreciation expense on right-of-use assets (note 12) (299) (193) Interest expense on lease liabilities (65) (45) Expense relating to short-term leases (12) (269) Expense relating to leases of low value assets (4) (4) (380) (511) At 31 December 2024, the Group was committed to $0.01 million (2023: $0.01 million) for short- term leases. All the leases are fixed payments. The total cash outflow for leases amount to $0.42 million (2023: $0.56 million). 173 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 21 Leases (continued) The Group leases a piece of land and office under the right-of-use assets. The remaining lease term is between 1 to 5 years. (2023: 1 to 5 years). On expiry the Group has the option to renew based on mutually agreed future rental. The right-of-use assets is classified as part of property, plant and equipment in note 12. Right-of-Use assets Land Building Total $000 $000 $000 At 1 January 2024 - 962 962 Additions 82 - 82 Amortisation (16) (283) (299) Impairment losses (65) - (65) Effect of foreign exchange (1) (3) (4) At 31 December 2024 - 676 676 Land Building Total $000 $000 $000 At 1 January 2023 - - - Additions - 1,160 1,160 Amortisation - (193) (193) Effect of foreign exchange - (5) (5) At 31 December 2023 - 962 962 Lease liabilities Land Building Total $000 $000 $000 At 1 January 2024 (30) (979) (1,009) Additions (82) - (82) Interest expense (2) (63) (65) Lease payments 75 330 405 Effect of foreign exchange (3) (6) (9) At 31 December 2024 (42) (718) (760) 174 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 21 Leases (continued) Land Building Total $000 $000 $000 At 1 January 2023 (104) - (104) Additions - (1,152) (1,152) Interest expense (3) (42) (45) Lease payments 73 215 288 Effect of foreign exchange 4 - 4 At 31 December 2023 (30) (979) (1,009) The tables above relates to a right of use asset and is presented in note 12. 22 Retirement benefits The Group provides Post-Employment Benefit plans to its employees in Indonesia in accordance with Job Creation Law No.11/2020, Government Regulation No.35/2021 effective since February 2021 and Collective Labour Agreements. These are defined benefit plans and provide lump sum benefits to employees on retirement, death, disability and voluntary resignation. There is no requirement for the Group to advance fund these benefits. The Group has set up a separate fund with PT Asuransi Allianz Life Indonesia to fund the Post- Employment Benefit plan obligation for Staff employees. The assets in the fund can only be used to pay the employees’ benefits. Defined contribution plan managed by Dana Pension Lembaga Keuangan AIA Financial (“DPLK AIAF”) and allocated to the individual participants. From 2020 onwards, these employees will receive the higher of the benefit from DPLK AIAF and the Post-Employment Benefit plan. The DPLK AIAF plan covers a smaller proportion of the overall Post-Employment Benefit obligation. The Group provides other long-term employee benefits in the form of Long Service Awards for Staff and Non-Staff employees in Indonesia. The Long Service Awards are for amounts of up to 2 months of basic salary, paid on completion of 10 or 20 years’ continuous service (Staff) and on completion of 25, 30, 35, and 40 years’ continuous service (Non-Staff). These benefits are unfunded. Critical estimates on actuarial assumptions on retirement benefits The defined benefit plans are valued by an actuary at the end of each financial year. The major assumptions used by the actuary were: 2024 2023 Rate of increase in wages 8.0% 8.0% Discount rate 7.3% 6.8% Mortality rate 100% TMI4 100% TMI4 Disability rate 10% TMI4 10% TMI4 * Mortality Table used in this calculation is Tabel Mortalita Indonesia IV (TMI IV) which was released in December 2019. This is the latest table which reflects the mortality rate of Indonesia’s population. The mortality rate in the table differs by age and gender. 175 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 22 Retirement benefits (continued) 2024 2023 $000 $000 Service cost Current service cost 1,703 1,539 Past service cost 473 375 Net interest expense 664 616 Remeasurements on net defined benefit liability (76) 51 Total employee benefits expense 2,764 2,581 The reconciliation on the remeasurement of retirement benefit plan as shown below: 2024 2023 $000 $000 Included in other comprehensive income: Continuing operations (378) 375 Discontinued operations - - Remeasurement of retirement benefit plan, net of tax recognised in other comprehensive income (378) 375 Included in other comprehensive income: Remeasurement of retirement benefit plan (473) 468 Deferred tax on retirement benefits 95 (93) Remeasurement of retirement benefit plan, net of tax recognised in other comprehensive income (378) 375 176 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 22 Retirement benefits - continued (i) Reconciliation of defined benefit obligation and fair value of scheme assets including discontinued operations Defined benefit obligation Fair value of scheme assets Net defined scheme liability Funded Unfunded Funded Unfunded Funded Unfunded scheme scheme Total scheme scheme Total scheme scheme Total $000 $000 $000 $000 $000 $000 $000 $000 $000 At 1 January 2023 (4,211) (8,098) (12,309) 1,435 - 1,435 (2,776) (8,098) (10,874) Service cost - current (722) (817) (1,539) - - - (722) (817) (1,539) Service cost - past (373) (2) (375) - - - (373) (2) (375) Adjustment due to change in attribution method (2,114) 2,114 - - - - (2,114) 2,114 - Interest (cost)/income (370) (351) (721) 105 - 105 (265) (351) (616) Remeasurements on net defined benefit liability - (51) (51) - - - - (51) (51) Included in income statement (3,579) 893 (2,686) 105 - 105 (3,474) 893 (2,581) Remeasurement (loss)/gain Actuarial (loss)/gain from: Adjustments (experience) (179) 197 18 - - - (179) 197 18 Financial assumptions (242) (232) (474) - - - (242) (232) (474) Return on plan assets (exclude interest) - - - (12) - (12) (12) - (12) Included in other comprehensive income (421) (35) (456) (12) - (12) (433) (35) (468) Effect of movements in exchange rates (53) (193) (246) 26 - 26 (27) (193) (220) Employer contribution - - - 742 - 742 742 - 742 Benefits paid 689 324 1,013 (516) - (516) 173 324 497 Cost of termination - payment - 1,956 1,956 - - - - 1,956 1,956 Cost of termination 196 (546) (350) - - - 196 (546) (350) Other movements 832 1,541 2,373 252 - 252 1,084 1,541 2,625 At 31 December 2023 (7,379) (5,699) (13,078) 1,780 - 1,780 (5,599) (5,699) (11,298) 177 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 22 Retirement benefits - continued (i) Reconciliation of defined benefit obligation and fair value of scheme assets (continued) Defined benefit obligation Fair value of scheme assets Net defined scheme liability Funded Unfunded Funded Unfunded Funded Unfunded scheme scheme Total scheme scheme Total scheme scheme Total $000 $000 $000 $000 $000 $000 $000 $000 $000 At 1 January 2024 (7,379) (5,699) (13,078) 1,780 - 1,780 (5,599) (5,699) (11,298) Service cost – current (1,131) (572) (1,703) - - - (1,131) (572) (1,703) Service cost - past (291) (182) (473) - - - (291) (182) (473) Adjustment due to change in attribution method (3,014) 3,014 - - - - (3,014) 3,014 - Interest (cost)/income (607) (189) (796) 132 - 132 (475) (189) (664) Remeasurements on net defined benefit liability - 76 76 - - - - 76 76 Included in income statement (5,043) 2,147 (2,896) 132 - 132 (4,911) 2,147 (2,764) Remeasurement (loss)/gain Actuarial (loss)/gain from: Adjustments (experience) 3 120 123 - - - 3 120 123 Financial assumptions 403 383 (20) - - - 403 (20) 383 Return on plan assets (exclude interest) - - - (33) - (33) (33) - (33) Included in other comprehensive income 406 100 506 (33) - (33) 373 100 473 Effect of movements in exchange rates 419 217 636 (107) - (107) 312 217 529 Employer contribution - - - 1,562 - 1,562 1,562 - 1,562 Benefits paid 644 121 765 (343) - (343) 301 121 422 Other 223 (16) (239) 19 - 19 242 (239) 3 Other movements 1,286 99 1,385 1,131 - 1,131 2,417 99 2,516 At 31 December 2024 (10,730) (3,353) (14,083) 3,010 - 3,010 (7,720) (3,353) (11,073) 178 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 22 Retirement benefits (continued) (ii) Disaggregation of defined benefit scheme assets The fair value of the funded assets is analysed as follows: 2024 2023 $000 $000 Bonds - Government bonds 1,529 1,090 - Corporate bonds - - 1,529 1,090 Cash/deposits 1,481 690 3,010 1,780 None of the plan assets are invested in the Group’s own financial instruments, property or other assets used by the Group. All plan assets invested in bonds which have a quoted market price in an active market. (iii) Defined benefit obligation - sensitivity analysis The following table exhibits the sensitivity of the Group’s retirement benefits to the fluctuation in the discount rate, wages and mortality rate: Reasonably Defined benefit obligation Possible Increase Decrease Change $000 $000 Discount rate (+/- 1%) (1,018) 1,146 Growth in wages (+/- 1%) 1,185 (1,070) The weighted average duration of the defined benefit obligation is 8.61 years (2023: 8.78 years). The total contribution paid into the defined contribution plan in 2024 amounted to $224,000 (2023: $227,000). The Group expects to pay contributions of $459,000 to the funded plans in 2025. For the unfunded plans, the Group pays the benefits directly to the individuals; the Group expects to make direct benefit payments of $1,376,000 for defined benefit plan and $220,000 for defined contribution plan in 2025. 179 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 23 Share capital and treasury shares Issued Issued and Issued and and Authorised fully paid Authorised fully paid Authorised fully paid Number Number £000 £000 $000 $000 Ordinary shares of 25p each Beginning and end of year 60,000,000 39,976,272 15,000 9,994 23,865 15,504 Cost Cost 2024 2023 2024 2023 Treasury shares: Number Number $’000 $’000 Beginning of year 415,826 339,900 (1,847) (1,171) Share buy back 71,852 75,926 (640) (676) End of year 487,678 415,826 (2,487) (1,847) Market value of treasury shares: $’000 Beginning of year (670.0p/share) 3,551 End of year (654.0p/share) 3,996 71,852 treasury share was purchased in 2024 (2023: 75,926). All fully paid ordinary shares have full voting rights, as well as to receive the distribution of dividends and repayment of capital upon winding up of company. 24 Ultimate controlling shareholder At 31 December 2024, Genton International Limited (“Genton”), a company registered in Hong Kong, held 20,247,814 (2023: 20,247,814) shares of the Company representing 51.3% (2023: 51.2%) of the Company’s issued share capital, excluding treasury shares. Together with other deemed interested parties, Genton‘s shareholding totals 20,551,914 or 52.0%. The ultimate beneficial shareholders of Genton International Limited are vested in the estates of Madam Lim with the application for probate in progress. 25 Related party transactions Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. An office premises lease agreement was entered with Infra Sari Sdn Bhd, a company controlled by the late Madam Lim Siew Kim. The rental paid during the year was $166,800 (2023: $246,317). There was no balance outstanding at the year end (2023: Nil). 180 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 25 Related party transactions (continued) In 2024, the final dividend paid to Genton International Limited, a company controlled by the late Madam Lim Siew Kim, was $3,037,172 for the year ended 31 December 2023 (2023: $5,061,954 for the year ended 31 December 2022) and no interim dividend was paid to Genton International Limited for the year ended 31 December 2024 (2023: $3,037,172). The final dividend paid to other companies controlled by the late Madam Lim Siew Kim was $45,615 for the year ended 31 December 2023 (2023: $76,025 for the year ended 31 December 2022). There was no balance outstanding at the year end (2023: Nil). No interim dividend paid to other companies controlled by the late Madam Lim Siew Kim for the year ended 31 December 2024 (2023: $45,615 for the year ended 31 December 2023). 26 Reserves Nature and purpose of each reserve: Share capital Amount of shares subscribed at nominal value. Share premium Amount subscribed for share capital in excess of nominal value. Capital redemption reserve Amounts transferred from share capital on redemption of issued shares. Treasury shares Cost of own shares held in treasury. Exchange reserves Gains/losses arising from translating the net assets of overseas operations into US Dollar. Retained earnings Cumulative net gains and losses recognised in the consolidated income statement. 27 Guarantees and other financial commitments 2024 2023 $000 $000 Capital commitments at 31 December Contracted but not provided - normal estate operations 184 282 Contracted but not provided – mill development - 23 Authorised but not contracted - plantation and mill development 45,790 34,143 A subsidiary company, PT Sawit Graha Manunggal (“SGM”) has provided a corporate guarantee to Koperasi Bartim Sawit Sejahtera (“KBSS”), a party under Plasma scheme as disclosed in note 14, in relation to a loan taken by KBSS from PT Bank Mandiri (Persero) Tbk. of Rp226.02 billion ($14.7million). The guarantee that was in place as at 31 December 2023 has been settled as the loan has been settled during 2024. On 3 February 2017, a subsidiary company, PT Alno Agro Utama and Koperasi Perkebunan Plasma Maju Sejahtera (“KPPM”) signed a Refinancing Agreement with PT Bank Syariah Mandiri (“BSM”) to fund its plasma development. The Agreement provides a loan of Rp 8.75 billion ($0.5 million) (2023: Rp8.75 billion, $0.6 million), with 10 (Ten) years maturity period effective from 24 July 2017 with an interest rate of 13.25% per annum and in 2021 decreased to 12.5% per annum. This loan is collateralized by 125.4 hectares of KPPM’s land located in Desa Serami Baru, Kecamatan Malin Deman, Kabupaten Mukomuko, Bengkulu and its plantation with a carrying amount of $0.6 million as at 31 December 2024 (31 December 2023: $0.6 million) as security under the agreement while the Company provides corporate guarantee amounting to Rp 8.75 billion ($0.5 million). As of 31 December 2024, the outstanding bank loans amounted to $0.3 million, compared to $0.9 million in 2023. 181 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 27 Guarantees and other financial commitments (continued) The Group’s loss provision on these financial guarantee contracts was immaterial for 2023 and 2024. 28 Disclosure of financial instruments and other risks The Group's principal financial instruments comprised investment, cash, short and long-term bank loans, trade receivables excluding prepayments and payables excluding advance receipts and receivables from local partners in respect of their investments. The Group’s accounting classification of each class of financial asset and liability at 31 December 2024 and 2023 were: Financial Fair value Financial liabilities through assets at at Total profit and amortised amortised carrying loss cost cost value $000 $000 $000 $000 2024 Investments 29,087 - - 29,087 Non-current receivables - 19,363 - 19,363 Trade and other receivables - 3,588 - 3,588 Short-term investments - 1,253 - 1,253 Cash and cash equivalents - 181,908 - 181,908 Trade and other payables - - (16,766) (16,766) 29,087 206,112 (16,766) 218,433 Financial Fair value Financial liabilities through assets at at Total profit and amortised amortised carrying loss cost cost value $000 $000 $000 $000 2023 (Restated) Investments 10,035 - - 10,035 Non-current receivables - 17,617 - 17,617 Trade and other receivables - 8,481 - 8,481 Short-term investments - 14,076 - 14,076 Cash and cash equivalents - 152,984 - 152,984 Trade and other payables - - (20,196) (20,196) 10,035 193,158 (20,196) 182,997 The trade and other payables have been restated from $20,790,000 to $20,196,000, relating to the reversal of accruals amounting to $594,000. Further details are provided in Note 32. 182 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 28 Disclosure of financial instruments and other risks (continued) Financial instruments not measured at fair value Financial instruments not measured at fair value include cash and cash equivalents, trade and other receivables, trade and other payables, borrowings due within one year and non-current receivables. Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, trade and other payables approximates their fair value. The non-current receivables were measured at cost less ECL. The principal financial risks to which the Group is exposed are: - commodity price risk; and - currency risk; which, in turn, can affect financial instruments and/or operating performance. The Company does not hedge any of its risks. Its trade credit risks are low. Financial assets that are held at fair value through the profit or loss include investment to generate higher return. The Board is directly responsible for setting policies in relation to financial risk management and monitors the levels of the main risks through review of regular operational reports. Commodity price risk The Group is exposed to fluctuations in the market prices of palm produce, which directly affect the revenue. The Group does not normally contract to sell produce more than one month ahead. Currency risk Most of the Group's operations are in Indonesia. The Company and Group accounts are prepared in US Dollar which is not the functional currency of the operating subsidiaries. The Group does not hedge its net investment in its overseas subsidiaries and is therefore exposed to a currency risk on that investment. The historical cost of investment (including intercompany loans) by the parent in its subsidiaries amounted to $10,808,000 (2023 (Restated): $10,808,000), while the statement of financial position value of the Group's share of underlying assets at 31 December 2024 amounted to $551,031,000 (2023: $513,639,000). All the Group's sales are made in local currency and any trade receivables are therefore denominated in local currency. No hedging is therefore necessary. Selling prices of the Group's produce are directly related to the US Dollar denominated world prices. Appreciation of local currencies, therefore, reduces profits and cash flow of the Indonesian and Malaysian subsidiaries in US Dollar terms and vice versa. There are no borrowings in the Group and therefore there is no longer any currency risk for the Group in respect of this. The average interest rate on local currency deposits was 0.12% higher (2023: 0.19% higher) than on US Dollar deposits. The unmatched balance at 31 December 2024 was represented by the $33,435,000 shown in the table below (2023: $6,844,000). 183 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 28 Disclosure of financial instruments and other risks (continued) Currency risk (continued) The table below shows the net monetary assets and liabilities of the Group as at 31 December 2024 and 2023 that were not denominated in the operating or functional currency of the operating unit involved. Net foreign currency assets/(liabilities) US Dollar Sterling Total Functional currency of Group operation $000 $000 $000 2024 Rupiah 17,853 - 17,853 US Dollar - 2,621 2,621 Ringgit 15,582 - 15,582 Total 33,435 2,621 36,056 2023 Rupiah 6,538 - 6,538 US Dollar - 990 990 Ringgit 306 - 306 Total 6,844 990 7,834 The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to foreign exchange risk. The impact on equity if Ringgit or Rupiah strengthen or weaken by 10% against US Dollar: 2024 2023 (Restated) Carrying -10% in +10% in Carrying -10% in +10% in Amount Rp : $ and Rp : $ and Amount Rp : $ and Rp : $ and US$ RM : $ RM : $ US$ RM : $ RM : $ $000 $000 $000 $000 $000 $000 Financial Assets Non-current receivables 19,363 (1,760) 2,151 17,617 (1,602) 1,957 Trade and other receivables 3,588 (320) 391 8,481 (450) 551 Short-term investments 1,253 - - 14,076 (1,280) 1,564 Cash and cash equivalents 181,908 (16,359) 19,995 152,984 (13,763) 16,822 Financial Liabilities Trade and other payables (16,766) 1,493 (1,825) (20,196) 1,800 (2,200) Total (decrease)/increase (16,946) 20,712 (15,295) 18,694 The trade and other payables have been restated from $20,790,000 to $20,196,000, relating to the reversal of accruals amounting to $594,000. Further details are provided in Note 32. 184 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 28 Disclosure of financial instruments and other risks (continued) Liquidity risk Profitability of new sizable plantations normally requires a period of between six and seven years before cash flow turns positive. Because oil palms do not begin yielding significantly until four years after planting, this development period and the cash requirement is affected by changes in commodity prices. The Group attempts to ensure that it is likely to have either self-generated funds or further loan/ equity capital to complete its development plans and to meet loan repayments. Long-term forecasts are updated twice a year for review by the Board. In the event that falling commodity prices reduce self-generated funds below expectations and to a level where Group resources may be insufficient, further new planting may be restricted. Consideration is given to the funds required to bring existing immature plantings to maturity. The Group’s trade and tax payables are all due for settlement within a year. At 31 December 2024, the Group had no external loans and facilities. The following table sets out the undiscounted contractual cashflows of financial liabilities: Less Between Between More than 1 and 2 2 and 5 than 1 year years years 5 years Total $000 $000 $000 $000 $000 At 31 December 2024 Trade and other payables (7,342) - - - (7,342) Accruals (9,424) - - - (9,424) Lease liabilities (347) (199) (291) - (837) (17,113) (199) (291) - (17,603) At 31 December 2023 Trade and other payables (10,613) - - - (10,613) Accruals (Restated) (9,583) - - - (9,583) Lease liabilities (364) (333) (453) - (1,150) (20,560) (333) (453) - (21,346) * The accruals have been restated from $10,177,000 to $9,583,000, relating to the reversal of accruals amounting to $594,000. Further details are provided in Note 32. The total also restated from $21,940,000 to $21,346,000, respectively. 185 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 28 Disclosure of financial instruments and other risks (continued) Liquidity risk (continued) The figures for trade and other payables exclude accruals and advance receipts. The Group does not face a significant liquidity risk with regard to its financial liabilities. Interest rate risk The Group's surplus cash is subject to variable interest rates. The Group had net cash throughout 2024. A 1% change in the deposit interest rate would not have a significant impact on the Group’s reported results as shown in the table below. 2024 2023 -1% in +1% in -1% in +1% in Carrying interest interest Carrying interest interest amount rate rate amount rate rate $000 $000 $000 $000 $000 $000 Financial Assets Short-term investments 1,253 (10) 6 14,076 (208) 74 Cash and cash equivalents 181,908 (1,681) 1,799 152,984 (1,407) 1,543 Total (decrease)/ increase (1,691) 1,805 (1,615) 1,617 There is no policy to hedge interest rates, partly because of the net cash position and the net interest income position of the Group. Average US Dollar deposit rate in 2024 was 4.72% (2023: 4.30%) and Rupiah deposit rate was 4.60% (2023: 4.49%). Credit risk The Group has two types of financial assets that are subject to the ECL model: • trade receivables for sales of goods and services; and • current and non-current receivables carried at amortised cost. The Group also has financial guarantee contracts for which the ECL model is also applicable. 186 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 28 Disclosure of financial instruments and other risks (continued) Credit risk - continued While cash and cash equivalents are also subject to the impairment requirements as set out in IFRS 9, there is no impairment loss identified given the financial strength of the financial institutions in which the Group have a relationship with. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions. The Group has taken necessary steps and precautions in minimising the credit risk by lodging cash and cash equivalents only with reputable licensed banks, and particularly in Indonesia, independently rated banks with a minimum rating of “A”. The cash and cash equivalents are in US dollars, Rupiah, Ringgit and Sterling according to the requirements of the Group. The list of the principal banks used by the Group is given on the inside of the back cover of this report. The Group use three categories for those receivables which reflect their credit risk and how the loss provision is determined for those categories. (i) Trade receivables using the simplified approach The Group applies the simplified approach under IFRS 9 to measure ECL, which uses a lifetime expected loss provision for all trade receivables. To measure the expected losses, trade receivables have been grouped based on shared credit risk characteristics and days past due. The expected loss rates are based on historical payment profiles of sales and the corresponding historical credit losses experienced during these periods. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors (such as palm product prices and crude oil price) affecting the ability of the customers to settle the receivables. The historical loss rates will be adjusted based on the expected changes in these factors. No significant changes to estimation techniques or assumptions were made during the reporting period. In determining the expected loss rates, the Group also takes into consideration the collateral or payments received in advance, as set out below: Receivables are generally collected within the credit term and therefore there is minimal exposure to doubtful debts. Upfront payments are also collected for certain sales made by the Group’s subsidiaries in Indonesia. The Group’s maximum exposure to credit risk and loss provision recognised as at 31 December 2023 is disclosed in note 18. The ECL has been calculated at 1% on trade receivables balances while the remaining amount in which no ECL provision was recognised is deemed to be recoverable, with low probability of default. Default is defined by the management as the non- repayment of the balance. 187 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 28 Disclosure of financial instruments and other risks (continued) Credit risk - continued (ii) Other receivables at amortised costs other than trade receivables using the three-stage approach All of the Group’s debt instruments at amortised costs other than trade receivables are considered to have a low credit risk except amount due from cooperatives under Plasma scheme. Whilst Plasma receivables are generally considered to have a relatively higher credit risk, at the reporting date as these were considered to be performing, have low risks of default and historically there were minimal instances where contractual cash flow obligations have not been met, the credit risk was considered to be low. There has not been a significant increase in credit risk since initial recognition. The 12-month ECL has been calculated at 1% on the majority of balances (unless it has been considered there to be no ECL), with the exception of amounts due from cooperatives under Plasma scheme where the ECL is largely calculated, having considered various probability weighted outcomes, as being the balance of the receivable in excess of the recovery from the future cashflows of the cooperative or via bank financing which effectively would be returned to the Company if the receivable is not repaid. The maximum exposure to credit risks for debt instruments at amortised cost other than trade receivables are represented by the carrying amounts recognised in the statements of financial position. (iii) Financial guarantee contracts using the three-stage approach All of the financial guarantee contracts are considered to be performing, have low risks of default and historically there were no instances where these financial guarantee contracts were called upon by the parties of which the financial guarantee contracts were issued. Information regarding other non-current assets and trade and other receivables is disclosed in notes 14 and 18 respectively. Deposits with banks and other financial institutions and investment securities are placed, or entered into, with reputable financial institutions or companies with high credit ratings and no history of default . Capital The Group defines its Capital as Share capital and Reserves, shown in the statement of financial position as "Issued capital attributable to owners of the parent" and amounting to $551,031,000 at 31 December 2024 (2023: $513,639,000). Group policy presently attempts to fund development from self-generated funds and loans and not from the issue of new share capital. At 31 December 2024, the Group had no borrowings (2023: nil), but depending on market conditions, the Board is prepared for the Group to have borrowings. Plantation industry risk Please refer to pages 73 - 78. 188 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 29 Subsidiary companies The principal subsidiaries of the Company all of which have been included in these consolidated financial statements are as follows: Non-controlling Country of Proportion of interests incorporation ownership ownership/voting and principal interest at interest at Name place of business 31 December 31 December 2024 2023 2024 2023 Principal sub-holding company Anglo-Indonesian Oil Palms Limited United Kingdom 100% 100% - - Management company Anglo-Eastern Plantations Management Sdn Bhd Malaysia 100% 100% - - PT Anglo-Eastern Plantations Management Indonesia Indonesia 100% 100% - - Operating companies Anglo-Eastern Plantations (M) Sdn Bhd Malaysia 55% 55% 45% 45% All For You Sdn Bhd Malaysia 100% 100% - - PT Alno Agro Utama Indonesia 100% 100% - - PT Anak Tasik Indonesia 100% 100% - - PT Bangka Malindo Lestari Indonesia 100% 95% 5% - PT Bina Pitri Jaya Indonesia 100% 100% - - PT Cahaya Pelita Andhika Indonesia 100% 100% - - PT Hijau Pryan Perdana Indonesia 100% 100% - - PT Kahayan Agro Plantation Indonesia 100% 99.5% 0.5% - PT Mitra Puding Mas Indonesia 100% 100% - - PT Musam Utjing Indonesia 100% 100% - - PT Sawit Graha Manunggal Indonesia 100% 100% - - PT Simpang Ampat Indonesia 100% 100% - - PT Tasik Raja Indonesia 100% 100% - - PT United Kingdom Indonesia Plantations Indonesia 100% 100% - - 189 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 29 Subsidiary companies (continued) Non-controlling Country of Proportion of interests incorporation ownership ownership/voting and principal interest at interest at Name place of business 31 December 31 December 2024 2023 2024 2023 Dormant companies The Ampat (Sumatra) Rubber Estate (1913) Limited United Kingdom 100% 100% - - Gadek Indonesia (1975) Limited United Kingdom 100% 100% - - Mergerset (1980) Limited United Kingdom 100% 100% - - Musam Indonesia Limited United Kingdom 100% 100% - - Indopalm Services Limited United Kingdom 100% 100% - - * The Group purchased some of the shares of the non-controlling interest during the year. Hence, the Company’s effective ownership has increased. ** Direct subsidiaries of the Company The principal United Kingdom sub-holding company, and UK dormant companies are registered in England and Wales. The Malaysian operating companies and management company are incorporated in Malaysia. The Indonesian operating companies and management company are incorporated in Indonesia. The principal activity of the operating companies is plantation agriculture. The registered office of the principal subsidiaries is disclosed below: Subsidiaries by country Registered address UK registered subsidiaries Quadrant House, 6th Floor 4 Thomas More Square London E1W 1YW United Kingdom Malaysia registered subsidiaries 7 th Floor, Wisma Equity 150 Jalan Ampang 50450 Kuala Lumpur Malaysia Indonesia registered subsidiaries Sinar Mas Land Plaza, 3rd Floor #301, Jl. Pangeran Diponegoro No. 18 Kelurahan Madras Hulu, Kecamatan Medan Polonia Medan 20152, North Sumatera Indonesia 30 Non-controlling interests In 2024 and 2023, none of the subsidiaries which have non-controlling interests (“NCI”) contributed more than 10% of the Group’s total assets. 190 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 31 Acquisition of non-controlling interests In October 2024, the Group acquired some additional 5% of the issued share capital of PT Bangka Malindo Lestari ("BML") and 0.5% of the issued share capital of PT Kahayan Agro Plantation ("KAP") for a total consideration of $0.4mil, increasing the Group ownership interest to 100%. The following is the schedule of additional interest: 2024 $000 Consideration paid to non-controlling shareholders 400 Carrying value of the additional net liability 257 Difference recognised in retained earnings (Consolidated Statement of Changes in Equity) 657 Acquisition of additional interest in 2023. In June 2023, the Group acquired some additional 0.4% and 4.5% interest in the voting shares of PT Sawit Graha Manunggal (“SGM”) and PT Kahayan Agro Plantation (“KAP”), respectively, increasing the Group ownership interest to almost 100% with a consideration of $2.6 million. In July 2023, the Group also completed the acquisition of 25% of the issued share capital of PT United Kingdom Indonesia Plantations and the 10% of the issued share capital of PT Mitra Puding Mas, from PT. Canadianty Corporindo, the minority shareholder in Indonesia, for a total cash consideration of $25.2million, increasing the Group ownership interest to 100%. In November 2023, the Group also completed the acquisition of 20% of the issued share capital of PT Tasik Raja, PT Hijau Pryan Perdana, PT Bina Pitri Jaya, the 10% of the issued share capital of PT Alno Agro Utama and the 25% of the issued share capital of PT Musam Utjing, from PT Marison Nauli Ventura, the minority shareholder in Indonesia, for a total cash consideration of $60 million, increasing the Group ownership interest to 100%. (Restated) 2023 $000 Consideration paid to non-controlling shareholders 87,808 Carrying value of the additional interest (99,042) Difference recognised in retained earnings (Consolidated Statement of Changes in Equity) (11,234) The total consideration of $86.6 million was in cash with the remaining $1.2 million being offset against an existing loan. The carrying value of the additional interest has been restated from $101,342,000 to $99,042,000 due to the restatement of deferred tax assets as of 1 January 2023, which reduced the non- controlling interest. Following the acquisition of the non-controlling interest during FY2023, the carrying amount of the additional interest was adjusted to reflect the reduction. However, this adjustment had no impact on the balance of non-controlling interest as at 31 December 2023. 191 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 32 Prior year restatements Nature of the Restatement In the 2023 financial statements, the Group recognised a deferred tax asset in relation to capital losses incurred in Indonesia. This recognition was based on management’s interpretation of the Indonesian Income Tax Law, which was understood to permit capital losses arising from trading assets to be offset against future taxable profits. However, during a reassessment undertaken in the 2024 financial year, management concluded that the recognition did not satisfy the criteria under IAS 12 Income Taxes and relevant Indonesian tax regulations. As such, a prior period error was identified, and the Group restated its comparative financial information in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to reflect the appropriate accounting treatment. As of the approval date of the 2024 financial statements, the Indonesian tax assessment related to the capital losses remains ongoing. In addition, the Group identified and corrected the following additional accounting misstatements: - A historical error in the recognition of deferred tax assets associated with temporary differences between the accounting and tax bases of property, plant and equipment. - The reversal of certain accruals included in trade and other payables that were deemed no longer necessary. The effects of the restatements are summarised as follows: 2023 $000 Impact on consolidated income statement Profit for the year 64,162 Effect of change in restatement: Tax expense (1,545) Profit for the year after restatement 62,617 The prior year adjustments reduced earnings per share from continuing operations by 3.9 cents, from 128.82 cents to 124.92 cents for the year ended 31 December 2023. 2023 $000 Impact on consolidated statement of comprehensive income Other comprehensive loss for the year before restatement (624) Effect of change in restatement: Loss on exchange translation of foreign operations (225) Other comprehensive loss for the year after restatement (849) 192 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 32 Prior year restatements (continued) The following table summarises the impact of these prior year restatements on the Consolidated Statement of Financial Position: Balance Restated as reported balance at 1 January Effect of 1 January 2023 restatements 2023 $000 $000 $000 Impact on Consolidated Statement of Financial Position Deferred tax assets 12,773 (8,823) 3,950 Deferred tax liabilities (747) (58) (805) Trade and other payables (33,966) 594 (33,372) Exchange reserves (289,434) 543 (288,891) Retained earnings 722,191 (6,560) 715,631 Non-controlling interests 111,865 (2,270) 109,595 Balance Restated as reported balance 31 at 31 December Effect of December 2023 restatements 2023 $000 $000 $000 Impact on Consolidated Statement of Financial Position Deferred tax assets 11,054 (8,928) 2,126 Income tax receivable 19,169 (1,672) 17,497 Deferred tax liabilities (762) (51) (813) Trade and other payables (27,456) 594 (26,862) Exchange reserves (341,639) 459 (341,180) Retained earnings 826,656 (10,516) 816,140 Detailed Explanation of Adjustments Deferred Tax Assets - As at 1 January 2023, deferred tax assets were restated by a net decrease of $8.8 million, comprising a $10.9 million reversal of deferred tax assets related to investment losses and a $2.1 million recognition of deferred tax assets related to property, plant and equipment. - As at 31 December 2023, deferred tax assets were restated by a net decrease of $8.9 million, reflecting a $9.5 million reversal for investment loss-related deferred tax assets and a $0.6 million recognition for property, plant and equipment-related temporary differences. This $0.6 million recognition represents a $2.1 million deferred tax asset arising from temporary differences, which was partially offset by a $1.5 million reversal of deferred tax assets that was recognised through the income statement during the year. 193 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 32 Prior year restatements (continued) Detailed Explanation of Adjustments Deferred Tax Liabilities - As at 1 January 2023, deferred tax liabilities increased by $58,000. These increases resulted from the shift in the net deferred tax position from an asset to a liability due to the reversal of the deferred tax asset previously recognised for investment losses. - As at 31 December 2023, deferred tax liabilities increased by $51,000. These increases resulted from the shift in the net deferred tax position from an asset to a liability due to the reversal of the deferred tax asset previously recognised for investment losses. Income Tax Receivables - As at 31 December 2023, income tax receivables were restated by a decrease of $1.7 million. This adjustment arose from the recognition of additional tax liabilities, as the Group could no longer utilise the tax losses previously associated with investment losses. Trade and Other Payables - As at both 1 January and 31 December 2023, trade and other payables were reduced by $594,000 following the reversal of previously recognised accruals that were no longer required. Exchange Reserves - As at 1 January 2023, exchange reserves increased by $0.5 million. This comprises a $0.6 million positive adjustment from exchange differences on the deferred tax asset, partially offset by a $0.1 million adjustment related to non-controlling interests. - As at 31 December 2023, exchange reserves increased by a further $0.5 million, driven by continued foreign exchange effects linked to the tax asset reversal. Retained Earnings - As at 1 January 2023, retained earnings were restated by a net decrease of $6.6 million. This consisted of: - Reduction of $11.7 million ($10.9 million at closing rate) from the reversal of deferred tax assets on investment losses; - Increase of $2.4 million resulting from the reallocation of adjustments to non-controlling interests; - Increase of $0.6 million from the reversal of accruals; - Increase of $2.1 million from the recognition of deferred tax assets on property, plant and equipment. - As at 31 December 2023, retained earnings were restated by a net decrease of $10.5 million, comprising: - Reduction of $11.7 million ($10.9 million at closing rate) from the reversal of deferred tax assets on investment losses; - Increase of $0.6 million from the reversal of accruals; - Net increase of $0.6 million related to deferred tax assets on property, plant and equipment, which included the recognition of $2.1 million offset by a $1.5 million reversal recognised through the income statement. Non-Controlling Interests - As at 1 January 2023, non-controlling interests were restated by a net decrease of $2.3 million, comprising a $2.4 million decrease related to the reversal of deferred tax assets and a $0.1 million increase from related exchange rate adjustments. - As at 31 December 2023, there was no impact on non-controlling interests as the affected subsidiaries were wholly owned during the reporting period. 194 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Consolidated Financial Statements (Continued) 33 Events after the reporting period The Company on 20 March 2025, announced that it has entered into an irrevocable commitment with Panmure to manage a programme to repurchase up to 3,963,637 ordinary shares of 25 pence each in the capital of the Company representing approximately 10% of the Ordinary Shares in issued. This authority expires on 30 June 2025, of if earlier, at the conclusion of the forthcoming annual general meeting. All such purchases will be market purchases made through the London Stock Exchange. Companies can hold their own shares which have been purchased in this way in treasury rather than having to cancel them. 195 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Company Statement of Financial Position As at 31 December 2024 Company Number: 01884630 Note 2024 $000 (Restated) 2023 $000 (Restated) 2022 $000 Non-current assets Property, plant & equipment 4 453 341 - Investments in subsidiaries 5 10,808 10,808 49,264 Investments 27 27 42 11,288 11,176 49,306 Current assets Receivables 6 84,689 61,735 1,163 Short-term investments 1,253 - - Cash at bank and in hand 1,956 1,587 954 87,898 63,322 2,117 Current liabilities Other payables 7 (383) (2,708) (2,688) Lease liabilities 8 (71) (65) - (454) (2,773) (2,688) Net current assets 87,444 60,549 (571) Non-current liabilities Lease liabilities 8 (214) (277) - (214) (277) - Net assets 98,518 71,448 48,735 Capital and reserves Share capital 9 15,504 15,504 15,504 Treasury shares 9 (2,487) (1,847) (1,171) Share premium 23,935 23,935 23,935 Capital redemption reserve 1,087 1,087 1,087 Exchange reserves 3,872 3,872 3,872 Retained earnings 56,607 28,897 5,508 Shareholders' funds 98,518 71,448 48,735 The profit after tax for the year for the Company in the consolidated financial statements was $33,633,000 (2023: profit after tax $39,243,000). The financial statements were approved and authorised for issue by the Board of Directors on 30 May 2025 and were signed on its behalf by: Marcus Chan Jau Chwen Executive Director of Corporate Affairs The accompanying notes are an integral part of this statement of financial position. 196 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Company Statement of Changes in Equity For the year ended 31 December 2024 Share capital Treasury shares Share premium Capital redemption reserve Exchange reserves Retained earnings Total $000 $000 $000 $000 $000 $000 $000 Balance at 31 December 2022 15,504 (1,171) 23,935 1,087 3,872 6,359 49,586 Restatements (note 15) - - - - - (851) (851) Balance at 31 December 2022 (Restated) 15,504 (1,171) 23,935 1,087 3,872 5,508 48,735 Comprehensive profit for the year Profit for the year - - - - - 39,243 39,243 Total comprehensive profit for the year - - - - - 39,243 39,243 Share buy back - (676) - - - - (676) Dividends paid - - - - - (15,854) (15,854) Balance at 31 December 2023 (Restated) 15,504 (1,847) 23,935 1,087 3,872 28,897 71,448 Comprehensive profit for the year Profit for the year - - - - - 33,633 33,633 Total comprehensive profit for the year - - - - - 33,633 33,633 Share buy back - (640) - - - - (640) Dividends paid - - - - - (5,923) (5,923) Balance at 31 December 2024 15,504 (2,487) 23,935 1,087 3,872 56,607 98,518 The accompanying notes are an integral part of this statement of changes in equity. 197 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements 1 Basis of preparation The financial statements have been prepared in accordance with Financial Reporting Standard 100 Application of Financial Reporting Requirements (“FRS 100”) and Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”). Disclosure exemptions adopted In preparing these financial statements the Company has taken advantage of all disclosure exemptions conferred by FRS 101. Therefore, these financial statements do not include: • certain comparative information as otherwise required by IFRS; • certain disclosures regarding the Company’s capital; • a statement of cash flows; • the effect of future accounting standards not yet adopted; • the disclosure of the remuneration of key management personnel; and • disclosure of related party transactions with other wholly owned members of Anglo-Eastern Plantations Plc group of companies. In addition, and in accordance with FRS 101 further disclosure exemptions have been adopted because equivalent disclosures are included in the Company’s consolidated financial statements. These financial statements do not include certain disclosures in respect of: • financial instruments (other than certain disclosures required as a result of recording financial instruments at fair value); or • fair value measurement (other than certain disclosures required as a result of recording financial instruments at fair value). 2 Accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the years presented unless otherwise stated. (a) Basis of accounting The separate financial statements of the Company are presented as required by the Companies Act 2006. They have been prepared under the historical cost convention. The presentation currency used is US Dollar and amounts have been presented in thousands (“$000”). The principal accounting policies are summarised below. (b) Foreign currency The Company’s functional currency is the US Dollar, as it reflects the primary currency that influences its financing activities, cost structure, and cash flows. Both dividends and management fees, being the Company’s sources of income, are received in US Dollar, further supporting the determination of US Dollar as the functional currency. Foreign currency transactions are translated into US Dollar at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate at the balance sheet date. Exchange differences are recognised in the income statement. (c) Investments Investments in subsidiaries are stated at cost less provision for any impairment. 198 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 2 Accounting policies (continued) (d) Property, plant and equipment All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that is directly attributable to the acquisition of the items. After initial recognition, all items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Office plant and equipment is depreciated using the straight-line method. The yearly rate of depreciation is as follows: Office plant, equipment & vehicles: 20% per annum (e) Leases The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable. The lease liability is presented as a separate line in the consolidated statement of financial position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset which is 5 years. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented together in property, plant and equipment in the consolidated statement of financial position. 199 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 2 Accounting policies - continued (f) Dividends Equity dividends are recognised when they become legally payable. The Company may pay an interim dividend each year. The final dividend becomes legally payable when approved by the shareholders at the next annual general meeting. (g) Deferred taxation A deferred tax asset has not been recognised in relation to brought forward tax losses of $13.7m (2023: $13.7m) because it is not certain those losses can be utilised in the foreseeable future. (h) Treasury shares Consideration paid or received for the purchase or sale of the Company’s own shares for holding in treasury is recognised directly in equity, where the cost is presented as the treasury shares. Any excess of the consideration received on the sale of treasury shares over the weighted average cost of shares sold is taken to the share premium account. Any shares held in treasury are treated as cancelled for the purpose of calculating earnings per share. (i) Financial guarantee contracts Where the Company enters into financial guarantee contracts and guarantees the indebtedness of other companies within the Group, these are accounted for under IFRS 9. The details of financial guarantee contracts are disclosed in note 27 of the consolidated financial statements. (j) Critical accounting estimates and judgements The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Estimates and assumptions • Recoverability of investments – estimate based on fair value less cost of disposal method (note 5). 3 Income statement As permitted by section 408 of the Companies Act 2006, a separate income statement dealing with the results of the Company has not been presented. The profit before tax for the year for the Company in the consolidated financial statements of the Company was $33,636,000 (2023: profit before tax $39,246,000) and profit after tax for the year was $33,633,000 (2023: profit after tax $39,243,000). The remuneration of the directors of the Company is disclosed in note 7 to the consolidated financial statements. Auditor’s remuneration is disclosed in note 5 to the consolidated financial statements. 200 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 4 Property, plant & equipment Office plant, equipment & vehicle $000 Right- of-use assets* $000 Total $000 Cost At 1 January 2023 - - - Additions 3 362 365 At 31 December 2023 3 362 365 Additions 208 - 208 At 31 December 2024 211 362 573 Accumulated depreciation and impairment At 1 January 2023 - - - Charge for the year 0 24 24 At 31 December 2023 0 24 24 Charge for the year 24 72 96 At 31 December 2024 24 96 120 Carrying amount At 31 December 2022 - - - At 31 December 2023 3 338 341 At 31 December 2024 187 266 453 * Right-of-use assets has been disclosed in Note 8. 5 Investments in subsidiaries 2024 $000 (Restated) 2023 $000 Investments in subsidiaries undertakings 13,716 13,716 Impairment loss (2,908) (2,908) Net carrying amount 10,808 10,808 The Company’s impairment loss on subsidiaries were as follows: 2024 (Restated) 2023 $000 $000 At 1 January/31 December 2,908 2,908 201 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 5 Investments in subsidiaries (continued) The Company has retrospectively recognised an impairment loss on its investment in a subsidiary based on a 31 December 2024 valuation, using the fair value less costs to dispose method (Level 3). This resulted in a reduction in net assets and equity, with no impact on profit or loss, cash flows, or earnings per share. Certain disclosures are included in the basis of preparation note under the FRS 101 exemption, as detailed in Note 15. The details of the subsidiaries are disclosed in note 29 of the consolidated financial statements. 6 Receivables 2024 $000 2023 $000 Amounts owed by group undertakings: Anglo-Eastern Plantations Management Sdn Bhd 16,128 1,145 Anglo-Indonesian Oil Palms Limited 68,477 57,019 PT Anglo-Eastern Plantations Management Indonesia 14 48 84,619 58,212 Other receivables 70 3,523 84,689 61,735 The amounts owed by group undertakings arise as a result of advances made to subsidiary companies and expenses paid on their behalf by the Company. These amounts are repayable on demand and do not have fixed repayment terms. These advances are different to normal intercompany loans as the advances are unsecured amounts, interest-free and they do not represent formal loan arrangements. Other receivables comprise non-trade amounts due from third parties, deposits, and advances, which are measured at amortised cost and are expected to be recovered within twelve months, unless otherwise stated. A receivable is considered in default when it is over 90 days past due or there is evidence of significant financial difficulty or unlikelihood of payment by the counterparty, triggering recognition of lifetime expected credit losses (ECL) under IFRS 9. The Group applies the simplified ECL approach, including for intercompany balances repayable on demand, where ECL is minimal if the borrower can repay in full or recovery is expected over time. Receivables are written off when recovery is no longer expected, with write-offs derecognised under IFRS 9 and any recoveries recognised in profit or loss. In accordance with IFRS 9, the Company assesses expected credit losses (ECL) on intercompany balances, including those classified as repayable on demand. The ECL assessment follows a prudent, forward-looking approach and considers the financial condition and liquidity of the counterparty at the reporting date. 202 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 6 Receivables (continued) The following key assumptions are applied in assessing ECL: - If the borrower has sufficient accessible highly liquid assets to settle the balance in full if demanded, the ECL is assessed as immaterial. - If the borrower cannot repay on demand in full, the Company evaluates recovery strategies (e.g. repayment over time or fire sale of less liquid assets). - Where recovery is expected to be full under a reasonable timeframe, the ECL is considered minimal. As of the reporting date, based on an assessment of subsidiaries’ cash positions and financial health, the Company concluded that all intercompany balances are fully recoverable. Accordingly, only an ECL provision of $0.7m has been recognised which is deemed to be immaterial. The details of other receivables related to ECL were disclosed in note 18 and note 28 of the consolidated financial statements. Movements on the Company’s loss provision on other receivables were as follows: 2024 $000 2023 $000 At 1 January 2,587 2,235 Loss provision during the year 699 352 At 31 December 3,286 2,587 At 31 December 2024, the expected loss provision for receivables was as follows: Gross carrying amount $000 Loss provision $000 Net carrying amount $000 2024 Amounts owed by group undertakings 87,905 (3,286) 84,619 Other receivables 70 - 70 87,975 (3,286) 84,689 Gross carrying amount $000 Loss provision $000 Net carrying amount $000 2023 Amounts owed by group undertakings: 60,799 (2,587) 58,212 Other receivables 3,523 - 3,523 64,322 (2,587) 61,735 203 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 7 Other payables 2024 $000 (Restated) 2023 $000 Amounts owed to group undertakings: Mergerset (1980) Limited - 2,163 Musam Indonesia Limited - 246 - 2,409 Accruals 383 299 383 2,708 The other payables have been restated from $3,302,000 to $2,708,000 relating to the reversal of accruals amounting to $594,000. Further details are provided in Note 15. The amounts owed to group undertakings arise as a result of advances from subsidiary companies and expenses paid on our behalf. The amounts are unsecured, interest free and do not have fixed repayment terms. 8 Leases 2024 $000 2023 $000 Lease liabilities analysed as: Non-current (214) (277) Current (71) (65) (285) (342) The weighted average incremental borrowing rate per annum was 6.6%. Maturity analysis for the lease liabilities has been given. The following table sets out the undiscounted contractual cashflows of lease liabilities: 2024 $000 2023 $000 Less than 1 year (87) (85) Between 1 and 2 years (87) (85) Between 2 and 5 years (145) (226) Lease liabilities (319) (396) 204 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 8 Leases (continued) Amounts recognised in income statement: 2024 $000 2023 $000 Depreciation expense on right-of-use assets (note 4) (72) (24) Interest expense on lease liabilities (20) (8) Expense relating to short-term leases - (132) Expense relating to leases of low value assets - - (92) (164) At 31 December 2024, the Company has no short-term lease commitment (2023: nil). All the leases are fixed payments. The total cash outflow for leases amount to $86,000 (2023: $160,000). The Company leases an office premises under the right-of-use assets. The remaining lease term is 8 months. On expiry the Company has the options to renew based on mutually agreed future rental and the Company will continue to rent for another for 5 years. The right-of-use assets is classified as part of property, plant and equipment in note 4. Right-of-Use assets Building Total $000 $000 At 1 January 2024 338 338 Amortisation (72) (72) At 31 December 2024 266 266 Building Total $000 $000 At 1 January 2023 - - Additions 362 362 Amortisation (24) (24) At 31 December 2023 338 338 205 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 8 Leases (continued) Lease liabilities Building Total $000 $000 At 1 January 2024 (342) (342) Interest expense (20) (20) Lease payments 86 86 Effect of foreign exchange (9) (9) At 31 December 2024 (285) (285) Building Total $000 $000 At 1 January 2023 - - Additions (362) (362) Interest expense (8) (8) Lease payments 28 28 At 31 December 2023 (342) (342) 9 Share capital and treasury shares The details of the share capital and treasury shares are disclosed in note 23 of the consolidated financial statements. 10 Related party transactions An office premises lease agreement was entered with Infra Sari Sdn Bhd, a company controlled by late Madam Lim Siew Kim. The rental paid during the year was $86,000 (2023: $160,569). There was no balance outstanding at the year end (2023: nil). The details of the dividend payment to the related parties controlled by late Madam Lim Siew Kim are disclosed in note 25 of the consolidated financial statements. Transactions between the Company and its subsidiaries are disclosed below: Nature of transactions Name 2024 $000 2023 $000 Management fees from Anglo-Eastern Plantations Malaysia Sdn Bhd 37 36 Commissioner services income PT Anglo-Eastern Plantations Management Indonesia 14 14 Receivable from Subsidiaries (note 6) 84,619 58,212 Payable to Subsidiaries (note 7) - 2,409 The details of the intercompany receivables and payables are disclosed in note 6 and note 7 of the Company financial statements respectively. 206 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 11 Employees’ and Directors’ remuneration There are no other employees in the company other than directors. The Directors’ Remuneration Report is presented on pages 38 to 47 of which pages 42 and 44 are audited. 12 Dividends In FY2024, the Company received a preference dividend of $835,000 and ordinary dividends totaling $35,000,000 from its subsidiaries (2023: $40,000,000). The details of the dividends declared by the Company are disclosed in note 11 of the consolidated financial statements. 13 Guarantees and other financial commitments The Company has provided nil guarantees for loans to subsidiaries (2023: nil) as set out in note 27 of the consolidated financial statements. 14 Ultimate controlling shareholder At 31 December 2024, Genton International Limited (“Genton”), a company registered in Hong Kong, held 20,247,814 (2023: 20,247,814) shares of the Company representing 51.3% (2023: 51.2%) of the Company’s issued share capital, excluding treasury shares. Together with other deemed interested parties, Genton‘s shareholding totals 20,551,914 or 52.0%. The ultimate beneficial shareholders of Genton International Limited are vested in the estates of Madam Lim with the application for probate in progress. 207 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 15 Prior year restatements The Company made retrospective corrections to its financial statements. An impairment loss was recognised on its investment in Anglo-Eastern Plantations (M) Sdn Bhd, measured using the fair value less costs to dispose methodology. This was based on a valuation dated 31 December 2024 that had not been obtained in previous reporting years. The fair value measurement is classified within Level 3 of the fair value hierarchy. In accordance with FRS 101, the Company applied disclosure exemptions under IAS 36.130(f)(ii) and (f)(iii), with related disclosures provided in the basis of preparation note. In addition, the Company identified and corrected the additional accounting misstatements related to the reversal of certain accruals included in trade and other payables that were deemed not required. The following table summarises the impact of this prior year restatements on the Company Statement of Financial Position: Balance as reported $000 Effect of restatements $000 Restated balance $000 Impact on company statement of financial position 31 December 2023 Investments in subsidiaries 12,253 (1,445) 10,808 Other payables (3,282) 594 (2,688) Retained earnings 29,748 (851) 28,897 1 January 2023 Investments in subsidiaries 50,709 (1,445) 49,264 Other payables (3,302) 594 (2,708) Retained earnings 6,359 (851) 5,508 Explanation of Adjustments: Investments in subsidiaries - The balance was reduced by $1.4 million as at both 1 January 2023 and 31 December 2023 to reflect the recognition of an impairment loss on the Company’s investment in Anglo-Eastern Plantations (M) Sdn Bhd. Other payables - The balance was reduced by $0.6 million at both 1 January 2023 and 31 December 2023 dates following the reversal of accruals that were not required. Retained earnings - The net adjustment to retained earnings was a reduction of $0.9 million at both 1 January 2023 and 31 December 2023. This reflects the combined impact of the $1.4 million reduction from the impairment of investment in subsidiaries, partially offset by a $0.6 million increase resulting from the reversal of accruals that were not required under other payables. 208 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notes to the Company Financial Statements (Continued) 16 Events after the reporting period The Company on 20 March 2025, announced that it has entered into an irrevocable commitment with Panmure to manage a programme to repurchase up to 3,963,637 ordinary shares of 25 pence each in the capital of the Company representing approximately 10% of the Ordinary Shares in issued. This authority expires on 30 June 2025, of if earlier, at the conclusion of the forthcoming annual general meeting. All such purchases will be market purchases made through the London Stock Exchange. Companies can hold their own shares which have been purchased in this way in treasury rather than having to cancel them. 209 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notice of Annual General Meeting MESSAGE FROM THE CHAIRMAN Jonathan Law, our chairman, is delighted to extend an invitation to all shareholders for our annual general meeting. As we mark the Group’s 40-year anniversary, we take this opportunity to express our heartfelt gratitude for your continued support and partnership. Together, we look forward to achieving even greater milestones in the years to come. Notice is hereby given that the 40 th Annual General Meeting of Anglo-Eastern Plantations Plc will be held at UHY Hacker Young LLP, 6th floor Quadrant House, 4 Thomas More Square, London E1W 1YW on 23 June 2025 at 11.00am (UK time GMT. UTC +0). The meeting will be for the following purposes, and voting will be decided on a show of hands unless a poll is validly demanded: AS ORDINARY BUSINESS Resolution Details 1 To receive and consider the accounts and the reports of the directors and auditor for the year ended 31 December 2024 2 To receive and consider the Directors' Remuneration Report as set out in the annual report and accounts for the year ended 31 December 2024 3 To re-elect Jonathan Law Ngee Song as a director 4 To re-elect Marcus Chan Jau Chwen as a director 5 To re-elect Michael Henry Stainer as a director 6 To re-elect Farah Suhanah Tun Ahmad Sarji as a director 7 To declare a final dividend 8 To appoint Forvis Mazars as auditors and to authorise the directors to determine their remuneration AS SPECIAL BUSINESS 9 That our Company is hereby generally and unconditionally authorised to make one or more market purchases (within the meaning of section 693 of the Companies Act 2006 (“Act”)) of its ordinary shares of 25p each in the capital of our Company to be held as treasury shares, provided that: a) the maximum aggregate number of ordinary shares hereby authorised to be purchased is 3,415,777; b) the minimum price (exclusive of expenses) which may be paid for each share is 25p; c) the maximum price (exclusive of expenses) which may be paid for each share may not exceed the higher of: i. 105% of the average of the middle-market quotations for such shares as derived from the Daily Official List of the London Stock Exchange for the 5 business days immediately preceding the day of purchase; ii. an amount equal to the price of the last independent trade; and iii. the highest current independent purchase bid on the London Stock Exchange; d) the authority hereby conferred shall expire at the conclusion of the next annual general meeting of our Company or on 30 June 2026 whichever shall be the earlier, save that our Company may, before the expiry of this authority, make a contract of purchase which will or may be executed wholly or partly after such expiry and may make a purchase of shares pursuant to any such contract. 210 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notice of Annual General Meeting (Continued) Resolution Details 10 To approve the change of name of our Company from Anglo-Eastern Plantations Plc to AEP Plantations Plc. 11 That a general meeting of our Company other than an annual general meeting may be called on not less than 14 clear days’ notice. By order of the Board CETC (Nominees) Limited Company Secretary Date: 30 May 2025 Notes: 1. Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, our Company has specified that only those shareholders on the register of members of our Company at close of business on 19 June 2025 shall be entitled to vote in respect of the number of shares registered in their name at that time. Changes to the register of members after 19 June 2025 or, if the meeting is adjourned, in the register of members at close of business on the date which is two days before the day of the adjourned meeting shall be disregarded in determining the rights of any person to vote at the meeting by proxy. 2. As at 19 May 2025 (being the latest practicable date prior to the publication of this notice), the Company’s issued share capital comprised 39,976,272 Ordinary Shares of 25p each. Each share carries one vote except 581,850 shares held as treasury shares and therefore the total number of voting rights in our Company as at 6:00pm (UK Time) on 19 May 2025 is 39,394,422. 3. A member of our Company may appoint one or more proxies to vote at the meeting. Where more than one proxy is appointed in relation to the meeting, each proxy must be appointed to exercise rights attaching to a different share or shares. You may not appoint more than one proxy to exercise rights attached to any one share. A proxy need not be a member of the Company. Members are encouraged to appoint the Chairman of the meeting as their proxy. 4. The instrument appointing a proxy must be deposited at the office of the Registrar by 9.30am (UK time) on 19 June 2025 not less than forty-eight hours before the time appointed for holding the meeting (or any adjournment thereof). 5. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s register of members in respect of the joint holding (the first-named being the most senior). 6. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the annual general meeting to be held on 23 June 2025 and any adjournment thereof by using the procedures described in the CREST Manual on the Euroclear website at www.euroclear.com/CREST. CREST personal members or other CREST sponsored members and those CREST members who have appointed a voting service provider should refer to their CREST sponsor or voting service provider, who will be able to take the appropriate action on their behalf. In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear’s specifications and must contain the information required for such instructions, as described in the CREST Manual. All messages relating to the appointment of a proxy or an instruction to a previously appointed proxy must be transmitted so as to be received by Computershare Investor Services PLC [CREST ID: 3RA50] by 9.30am on 19 June 2025. It is the responsibility of the CREST member concerned to take such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. Our Company may treat a CREST Proxy Instruction as invalid in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001. 211 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Notice of Annual General Meeting (Continued) 7. You may submit your proxy electronically using the link https://www-uk.computershare.com/investor/. If not already registered, you will need your Shareholder Reference Number (“SRN”) which is detailed on your share certificates. 8. The statement of the rights of shareholders in relation to the appointment of proxies does not apply to a person who receives this notice of general meeting as a person nominated to enjoy “information rights” under section 146 of the Companies Act 2006. If you have been sent this notice of meeting because you are such a nominated person the following statements apply: (i) you may have a right under an agreement between you and the registered shareholder by whom you were nominated to be appointed (or to have someone else appointed) as a proxy for this general meeting and (ii) if you have no such a right, or do not wish to exercise it, you may have a right under such an agreement to give instructions to that registered shareholder as to the exercise of voting rights. Nominated persons should contact the registered member by whom they were nominated in respect of these arrangements. 9. A member of our Company which is a corporation may authorise a person or persons to act as its representative(s) at the meeting. In accordance with the provisions of the Companies Act 2006, each such representative may exercise (on behalf of the corporation) the same powers as the corporation could exercise if it were an individual member of the Company, provided that they do not do so in relation to the same shares. It is no longer necessary to nominate a designated corporate representative. 10. Members satisfying the requirements of section 527 of the Companies Act 2006 may require our Company to publish on a website a statement by them (at the Company’s cost) relating to the audit of the Company’s accounts which are being laid before this meeting (including the auditor’s report and the conduct of the audit) or, where applicable, any circumstances connected with an auditor of our Company ceasing to hold office since the previous general meeting at which accounts were laid. Should such a statement be received, it will be published on the Company’s website at https://www.angloeastern.co.uk/. In those circumstances our Company would be under an obligation to forward a copy of the statement to the auditor forthwith and the statement would form part of the business which may be dealt with at this meeting. 11. Shareholders are welcomed to submit questions to the Board by email to stakeholder.relations@angloeastern. co.uk by 11 June 2025 and they will be answered after the AGM or at the AGM for those shareholders who are in attendance. Our Company must cause to be answered any such questions relating to the business being dealt with at the meeting but no such answer need be given if (a) to do so would interfere unduly with the preparation of the meeting or involve the disclosure of confidential information, (b) the answer has already been given on a website in the form of an answer to a question, or (c) it is undesirable in the interests of our Company or the good order of the meeting that the question be answered. 12. A copy of this notice and the other information required by section 311A of the Companies Act 2006 can be found at https://www.angloeastern.co.uk/. 13. If you are in any doubt as to any aspect of Resolutions 9 to 12 or as to the action you should take, you should immediately take your own advice from a stockbroker, solicitor, accountant or other independent financial advisor authorised under the Financial Services and Markets Act 2000. The Board believes that these Resolutions are in the best interests of our Company and shareholders as a whole. 14. If you have sold or otherwise transferred all your shares in the Company, please hand this document and the accompanying form of proxy to the purchaser or transferee, or to the bank, stockbroker or other agent through whom the sale or transfer was effected, for transmission to the purchaser or transferee. If you sell or have sold or otherwise transferred only part of your holding of existing shares please consult the bank, stockbroker or other agent through whom the sale or transfer was effected. 15. The following documents are available for inspection by members at the registered office of our Company during normal business hours (except Bank Holidays) and at the place of the meeting not less than 15 minutes prior to and during the meeting. The documents can also be obtained by email to [email protected]. (a) a copy of the Executive Director’s service agreement; (b) copies of Non-Executive Directors’ letters of appointment; and (c) a copy of the Company’s existing Articles of Association. 212 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Our Offices and Advisers SECRETARY AND REGISTERED OFFICE Anglo-Eastern Plantations Plc (Number 01884630) (Registered in England and Wales) CETC (Nominees) Limited Quadrant House, 6 th Floor 4 Thomas More Square London E1W 1YW United Kingdom Tel : +44 (0)20 7216 4621 +44 (0)20 7216 4600 OPERATIONS Malaysia Anglo-Eastern Plantations Management Sdn Bhd 7 th Floor, Wisma Equity 150 Jalan Ampang 50450 Kuala Lumpur Malaysia Tel : +60 (0)3 2162 9808 Indonesia PT Anglo-Eastern Plantations Management Indonesia Sinar Mas Land Plaza Jl. P.Diponegoro No.18, 3 rd Floor #301 Kelurahan Madras Hulu Kecamatan Medan Polonia Medan 20152 North Sumatera Indonesia Tel : +62 (0)61 452 8683 ADVISERS Independent auditor Forvis Mazars LLP 30 Old Bailey London EC4M 7AU United Kingdom Registrar Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ United Kingdom Stockbroker Panmure Liberum Ltd Ropemaker Place, Level 12 25 Ropemaker Street London EC2Y 9LY 213 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Glossary Terms Meaning £ British Pound Sterling ¢ Cents CPO Crude Palm Oil CSA Climate Scenario Analysis CSR Corporate Social Responsibility DTR4 Disclosure And Transparency Rules 4 EFB Empty Fruit Bunches EHS Environment Health and Safety EIA Environmental Impact Assessment EPS Earnings Per Share ESG Environmental, Social and Governance EU European Union EUDR European Union Deforestation Regulation FCA Financial Conduct Authority FFB Fresh Fruit Bunches FPIC Free, Prior and Informed Consent FRC Financial Reporting Council GHG Greenhouse Gas Ha Hectare HCS High Carbon Stock HCV High Conservation Value IAS International Accounting Standards IPCC Intergovernmental Panel on Climate Change ISCC International Sustainability and Carbon Certification ISPO Indonesian Sustainable Palm Oil MSPO Malaysian Sustainable Palm Oil MT Metric Tonne Terms Meaning NDPE No Deforestation, No Peat, and No Exploitation NGFS Network for Greening the Financial System NGO Non-Governmental Organisation OER Oil Extraction Rate p pence PLN Perusahaan Listrik Negara POME Palm Oil Mill Effluent PROPER Program for Pollution Control Evaluation and Rating RM Ringgit Malaysia Rp Indonesian Rupiah RSPO Roundtable on Sustainable Palm Oil SECR UK Streamlined Energy and Carbon Reporting SPOTT Sustainability Transparency Toolkit TCFD Taskforce on Climate Related Financial Disclosure TNFD Taskforce for Nature-related Financial Disclosures $ United States Dollars WRI World Resource Institute WWF World Wide Fund for Nature 214 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 Glossary (Continued) Region Plantation Also referred to as Terengganu, Malaysia Anglo-Eastern Plantations (M) Sdn Bhd Cenderung North Sumatera PT. Musam Utjing Sungei Musam North Sumatera PT. United Kingdom Indonesia Plantation Blankahan North Sumatera PT. Simpang Ampat Rambung North Sumatera PT. Tasik Raja Tasik North Sumatera PT. Anak Tasik Anak Tasik North Sumatera PT. Cahaya Pelita Andhika CPA North Sumatera PT. Hijau Pryan Perdana HPP Bangka PT Bangka Malindo Lestari BML Riau PT. Bina Pitri Jaya BPJ Bengkulu PT. Mitra Puding Mas MPM Bengkulu PT. Alno Agro Utama Alno Kalimantan PT. Sawit Graha Manunggal SGM Kalimantan PT. Kahayan Agro Plantation KAP 215 ANGLO-EASTERN PLANTATIONS PLC ANNUAL REPORT 2024 London Office Anglo-Eastern Plantations Plc Company Number: 01884630 Anglo-Eastern Plantations Plc Quadrant House, 6th Floor 4 Thomas More Square London E1W 1YW United Kingdom Tel : +44 (0)20 7216 4621 Malaysian Office Anglo-Eastern Plantations Management Sdn Bhd 7 th Floor, Wisma Equity 150 Jalan Ampang 50450 Kuala Lumpur Malaysia Tel : +60 (0)3 2162 9808 Indonesian Office PT Anglo-Eastern Plantations Management Indonesia Sinar Mas Land Plaza Jl. P. Diponegoro No. 18, 3 rd Floor #301 Keluruhan Madras Hulu Kecamatan Medan Polonia Medan 20152 North Sumatera Indonesia Tel : +62 (0)61 452 8683 www.angloeastern.co.uk
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.