TESS Group Announces Construction Status of EFB Pellet Manufacturing Plant in Indonesia (April 2026)

TESS Holdings Co., Ltd. (Headquarters: Yodogawa-ku, Osaka; President and CEO: Kazuki Yamamoto; hereinafter "the Company") is pleased to announce the construction status of its factory (Location: Sei Mangkei Industrial Estate, North Sumatra, Indonesia; hereinafter "the Plant") which will be a manufacturing base for "EFB*1 pellets," a biomass fuel derived from agricultural residues, at its consolidated subsidiary PT PTEC RESEARCH AND DEVELOPMENT (Headquarters: North Sumatra, Indonesia; President and CEO: Tomoya Ishida; hereinafter "PTEC"). Panoramic view of the Plant construction site EFB (left) and fiber after manufacturing process (right) ■Construction Progress The Plant commenced construction with a groundbreaking ceremony in February 2025*2. As of April 2026, the installation of equipment within the factory is largely complete, and trial operations, including EFB pellet manufacturing tests and load tests, are sequentially commencing towards the start of operations. In the mid-term management plan "TX2030" formulated and announced by our group in August 2024, the "Circular Biomass Fuel Business" is positioned as one of the focus business areas. We aim to promote a circular economy and expand our stock business by utilizing agricultural residues such as EFB and PKS*3 in the palm industry. Regarding EFB pellets, we will proceed with production and sales at this Plant, continue research and development for mass production, and aim to acquire a manufacturing capacity of 100,000 tons/year during the mid-term plan period for large-scale commercialization. Moving forward, our group aims to start operations of this Plant in June 2026 and contribute to the realization of global carbon neutrality through PTEC's biomass fuel manufacturing business utilizing agricultural residues. Location Sei Mangkei Industrial Estate, North Sumatra, Indonesia Site Area Approx. 11,000㎡ Annual Production Capacity (Planned) Approx. 10,000 tons Scheduled Start of Operations (Month/Year) June 2026 *1 EFB (Empty Fruit Bunch): Empty fruit bunches, a byproduct (residue) when extracting palm oil from oil palms. *2 Groundbreaking ceremony for EFB pellet manufacturing plant held in Sei Mangkei Industrial Estate, Indonesia: https://ssl4.eir-parts.net/doc/5074/tdnet/2571840/00.pdf *3 PKS (Palm Kernel Shell): Palm kernel shells remaining after extracting palm oil from palm seeds. ■Contact for inquiries regarding this matter TESS Holdings Co., Ltd. Public Relations & IR Team https://www.tess-hd.co.jp/contact/ *Our group has adopted telework and staggered working hours. Therefore, we may not be able to respond by phone, so please contact us via our website. We apologize for any inconvenience this may cause and appreciate your understanding.