TESS Group: Notice on the Construction Status of the EFB Pellet Manufacturing Plant in Indonesia (March 2026)

TESS Holdings Co., Ltd. (Headquarters: Yodogawa-ku, Osaka City; President and Representative Director: Kazuki Yamamoto; hereafter 'the Company') announces the construction status of a factory (Location: Sei Mangkei Special Economic Zone, North Sumatra, Indonesia; hereafter 'this factory') that will serve as a manufacturing base for 'EFB*1 pellets,' a biomass fuel derived from agricultural residues. The project is being carried out by the Company's consolidated subsidiary, PT PTEC RESEARCH AND DEVELOPMENT (Headquarters: Riau Islands Province, Indonesia; President and Representative Director: Tomoya Ishida; hereafter 'PTEC'). ■ Construction Progress This factory broke ground in February 2025 after holding a ground-breaking ceremony*2. As of March 2026, we are steadily advancing various construction works, including the installation of equipment, in preparation for the start of test runs. In the mid-term management plan 'TX2030' formulated and announced by the Group in August 2024, the 'Resource-circulating Biomass Fuel Business' is positioned as one of the focused business areas. We aim to promote the circular economy and expand our stock business through the utilization of agricultural residues in the palm industry, such as EFB and PKS*3. Regarding EFB pellets, we plan to advance production and sales at this factory, continue research and development for mass production, and aim to acquire a production capacity of 100,000 tons/year during the mid-term plan period for large-scale commercialization. Moving forward, our Group will continue to target the start of operations of this factory in June 2026, and through PTEC's biomass fuel manufacturing business utilizing agricultural residues, we will contribute to the realization of global carbon neutrality. Location: Sei Mangkei Special Economic Zone, North Sumatra, Indonesia Site Area: Approximately 11,000 ㎡