KLK FY2025 PATAMI improves 38% to RM817 Million on strong plantation performance

197301001526 (15043-V)

Wisma Taiko

No. 1, Jalan S.P. Seenivasagam

30000 Ipoh, Perak Darul Ridzuan, Malaysia

https://www.klk.com.my

FOR IMMEDIATE RELEASE 26 November 2025

PETALING JAYA, 26 NOVEMBER 2025: Kuala Lumpur Kepong Berhad ("KLK" or the "Group") posted a Profit After Tax and Minority Interests ("PATAMI") of RM817.3 million for the 12 months ended 30 September 2025, up 38% from RM591.0 million in the previous financial year.

The increase was mainly driven by the Plantation segment's strong performance, partly offset by non-cash losses of RM187.5 million from the Group's investment in Synthomer plc ("Synthomer") and unrealised foreign-exchange losses of RM157.2 million from translation of inter-company loans denominated in foreign currencies.

The Plantation segment recorded pre-tax profit of RM2.3 billion, a 41% increase from last year, supported by higher selling prices, slightly improved fresh fruit bunch ("FFB") yields, and ongoing cost optimisation. Palm oil prices were strong for large parts of the financial year, supported by Indonesia's proposed B50 biodiesel mandate.

The Manufacturing segment faced a challenging operating environment, with the Oleochemical sub-segment impacted by margin pressure, foreign exchange fluctuations, and start-up costs from new facilities. In the Refinery sub-segment, refining margins remained tight due to competitive selling prices and elevated feedstock costs. As part of its strategic measures to address structural pressures, the Group will continue to invest in production of value-added products. To this end, KLK has entered into a strategic joint venture with AAK AB ("AAK") to develop a specialty oils and fats refinery in Pasir Gudang, Johor, synergising KLK's integrated palm oil platform with AAK's formulation expertise.

The Group recognised share of losses of RM127.5 million from Synthomer and the impairment of investment in Synthomer of RM60.0 million. The impairment reflects the continued challenging chemical demand, though Synthomer reported signs of recovery in some of its specialised portfolios. KLK will continues to monitor the investment as part of its portfolio management strategy.

For the fourth quarter ended 30 September 2025, KLK only recorded a PATAMI of RM96.0 million, impacted by non-cash losses of RM123.7 million from the Group's investment in Synthomer which included the RM60 million impairment.

With major capital projects completed and capital spending normalised, KLK will focus on optimising utilisation and improving returns from recent investments. Backed by strong plantation cash flows and a resilient balance sheet, the Group remains well positioned to navigate the current challenging environment and deliver long-term sustainable growth. KLK remains confident of a better performance in FY2026.

"FY2025 was materially impacted by poor Manufacturing results. However, the Group anticipates some recovery in FY2026 with Plantation segment underpinning the results which shows the strength and resilience of KLK's integrated business model. We are well positioned to deliver long-term value for our stakeholders with key projects now completed."

About Kuala Lumpur Kepong Berhad (KLK)

KLK started as a plantation company more than 100 years ago and today, the development of oil palm remains the Group's core business. As of September 2024, KLK has about 300,000 hectares of planted area. Our landbank is spread across Malaysia (Peninsular and Sabah), Indonesia (Belitung Island, Sumatra, as well as Central and East Kalimantan) and Liberia.

Since the 1990s, KLK has diversified into resource-based manufacturing (refinery, oleochemical, derivatives and specialty chemicals) and vertically integrated its upstream, midstream and downstream businesses. The Group has since expanded its manufacturing operations resulting in internationally-scaled oleochemicals operations in Malaysia, Indonesia, China and Europe.

The Group started capitalising on the strategic location of its landbank in Peninsular Malaysia by branching into property development in 1990. It is presently focused on Bandar Seri Coalfields, a 1,001-acre township in Sungai Buloh that offers a mix of residential, commercial and recreational spaces, with amenities such as schools, parks, and retail outlets to cater to the needs of its growing community. Caledonia in Ijok, a smaller-scale development, complements this with thoughtfully planned homes and green spaces, providing a practical and serene living environment. Both projects aim to create well-rounded communities while incorporating sustainable practices.

Chin Su Ci Annabelle Chu

Senior Manager of Corporate Communications Investor Relations Manager sc.chin@klk.com.my annabelle.chu@klk.com.my

+6012 280 8908

https://www.klk.com.my