SOCIETE FINANCIERE DES CAOUTCHOUCS
2021
ANNUAL REPORT
Socfin
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ANNUAL REPORT 2021
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Socn
Group prole 4
1. Overview of the Group 4
2. History 4
3. Group structure 5
4. InformationontheholdingsofSocn 6
International market for rubber and palm oil 9
1. Rubber 9
2. Palm oil 12
Environment and social responsibility 15
Key gures 16
1. Activityindicators 16
2. Keyguresintheconsolidatedincomestatement 17
3. Keyguresintheconsolidatedstatementofnancialposition 17
Stock market data 18
Corporate governance statement 19
1. Introduction 19
2. Corporate governance chart 19
3. Board of Directors 19
4. Committees of the Board of Directors 22
4.1. Audit Committee 22
4.2. Appointment and Remuneration Committee 22
5. Remunerations 23
6. Shareholdingstatus 23
7. Financialcalendar 24
8. External audit 24
9. Corporate, social and environmental responsibility 24
10. Other information 24
Statement of compliance 25
Consolidated management report 26
Auditor’s report on the consolidated nancial statements 31
Consolidated nancial statements 36
1. Consolidatedstatementofnancialposition 36
2. Consolidated income statement 38
3. Consolidated statement of comprehensive income 39
4. Consolidatedstatementofcashows 40
5. Consolidated statement of changes in equity 41
6. Notestotheconsolidatednancialstatements 42
Note 1. Overview and accounting policies 42
Note 2. Subsidiaries and associates 53
Note3.Goodwill 56
Note4.Leases 56
Note 5. Intangible assets 58
Note6.Property,plantandequipment 59
Note7.Biologicalassets 60
Note8.Depreciationandimpairment 62
Note9.Impairmentofassets 62
Note10.Investmentproperties 64
Note11.Non-whollyownedsubsidiariesinwhichnon-controllinginterestsaresignicant 65
Note12.Financialassetsatfairvaluethroughothercomprehensiveincome 68
Note13.Deferredtaxes 69
Note14.Currenttaxassetsandliabilities 70
Note15.Incometaxexpense 71
Note16.Inventories 73
Table of contents
Table of contents
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ANNUAL REPORT 2021
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Note17.Tradereceivables(currentassets) 74
Note18.Otherreceivables(currentassets) 74
Note19.Cashandcashequivalents 75
Note20.Sharecapitalandsharepremium 75
Note21.Legalreserve 75
Note22.Pensionobligations 76
Note 23. Financial debts 80
Note 24. Trade and other payables 84
Note 25. Financial instruments 85
Note26.Staffcostsandaveragenumberofstaff 87
Note27.Othernancialincome 87
Note 28. Financial expenses 88
Note 29. Net earnings per share 88
Note 30. Dividends and directors’ fees 88
Note 31. Information on related party 89
Note 32. Off balance sheet commitments 90
Note 33. Segment information 90
Note 34. Risk management 98
Note 35. Contingent liabilities 101
Note36.Politicalandeconomicenvironment 103
Note37.Eventsaftertheclosingdate 103
Note 38. Auditor’s fees 104
Company’s management report 105
Audit report on the Company’s nancial statements 111
Company nancial statements 115
1. Balance sheet at 31 December 2021 115
2. Incomestatementfortheyearended31December2021 117
3. Notestothenancialstatementsfortheyear2021 118
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ANNUAL REPORT 2021
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Socn
Portrait du GroupeGroup prole
1. Overview of the Group
Société Financière des Caoutchoucs S.A., abbreviated
“Socn”isaLuxembourg company(the“Company”),
withregisteredofceat4avenueGuillaume,L-1650
Luxembourg. It was incorporated on 5
th
December
1959 and is listed on the Luxembourg Stock Exchange.
TheprincipalactivityofSocnistomanageaportfolio
of shares mainly focused on the exploitation of more
than 192,000 hectares of tropical palm oil plantations
and rubber trees located in Africa and South-East
Asia. Socn employs 34,945 people and achieved a
consolidatedrevenueofEUR837.6millionin2021.
2. History
• 05/12/1959 ConstitutionoftheSociétéFinancièreLuxembourgeoise,abbreviatedas“Socnal”intheformof
a holding company.
• 09/06/1960 TheSocnalshareshavebeenlistedontheLuxembourgStockExchange.
• 31/12/1960 Sinceitsformation,Socnalhasinvested,amongothers,in:SociétéFinancièredesCaoutchoucs
“Socn”(Belgium);PlantationsNord-Sumatra (Belgium);Selangor PlantationsCompany Berhad
(Malaysia);SennahRubberCompanyLtd(England)andvarioussocietiesofCongoleseequatorial
cultures.
• 31/12/1965 The portfolio includes new investments in Indonesia: Société de CulturesAsahan; Société de
CulturesBatangara;HuileriesdeDeliandSociétédeCulturesSungeiLiput
• 31/12/1971 Socnal invests in the Compagnie Internationale de Cultures “Intercultures”, a Luxembourg
company listed on the Luxembourg Stock Exchange; Socn Industrial Development “Socnde”
(Luxembourg)andinCompagnieduCambodge(France).
• 31/12/1972 SocnalparticipatesintheformationofSocnasia(Luxembourg)inexchangeforthesharesof
IndonesiancompaniesAsahan,Batangara,HuileriesdeDeliandSungeiLiput.Socnasiawillbe
listedontheLuxembourgStockExchangein1973.
• 31/12/1975 DisposalofSocn(Belgium)sharesfromtheportfolio.
• 31/12/1980 Acquisition of Selangor Holding shares, a Luxembourg company listed on the Luxembourg Stock
Exchange.
• 31/12/1994 Socnalinvests60%inthecapitalofSOGB(IvoryCoast)followingtheprivatisationofthisIvorian
plantation. This participation will be transferred to Intercultures.
• 31/12/1999 Sale of holdings Selangor Holding and Plantations Nord-Sumatra.
• 31/12/2000 Sale of Sennah Rubber Company shares following the public tender on these shares.
• 15/11/2006 FollowingthedistributionofInterculturessharesbySocnasia(spin-off),Socnaldirectlyholds,
ononesideSocnasia(Asia)andontheotherIntercultures(Africa).
• 10/01/2011 ExtraordinaryGeneralMeetingwhichratiedtoabandontheholding29statusandthechangeof
thenametoSociétéFinancièredesCaoutchoucs,abbreviated“Socn”.Changeofthenameof
InterculturestoSocnaf
• 01/07/2011 Share split by 20
• 29/08/2014 Socnexchanged9%ofSocnafsharesagainst100%ofthesharesofthecompanyincorporated
under French law, Société Anonyme Forestière andAgricole SAFA. The latter owns 68.93% of
Safacam, a Cameroon plantation company that exploits 5,400 hectares of palm oil trees and 4,400
hectaresofrubbertrees.Followingthisexchange,Socnstillholds55.08%ofSocnaf
• 31/12/2014 TheSAFAparticipationwasbroughttoSocnafthroughacapitalincreasebycontributioninkind.
Socnholds56.48%ofthecapitalofSocnasiaand58.79%ofthecapitalofSocnaf.
Socn
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Group prole
3. Group structure
PNS LTD
Luxembourg
PNS LTD
Luxembourg
65% 58%
30%
35%
50%
50%
50% 50%
50% 50%
33%
48%
100%
20%
20%
50%
50%
93%
87%
100%
100%
100%
SOCFINAF
Luxembourg
SOCFINAF
Luxembourg
15%
19%
SOCFIN
Luxembourg
SOCFIN
Luxembourg
SOCFINASIA
Luxembourg
SOCFINASIA
Luxembourg
100%
SOCFINDE
Luxembourg
SOCFINDE
Luxembourg
20% 80%
50%
15%
50%
50%
35%
20%
50%
100%90%
35%
65%
BEREBY-
FINANCES
Ivory Coast
BEREBY-
FINANCES
Ivory Coast
73%70%
100%
65%
100%
STP INVEST
Belgique
STP INVEST
Belgique
100%
SAFA
France
SAFA
France
100%
88% 69%
100%
100%
99,5%
50%
50%
50%
50%
Holding companiesHolding companies
67%
0,5%
Group prole
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Socn
4. Information on the holdings of Socn
Portfolio Number of shares Direct %
1) Listed shares
Luxembourg
Socnasia
11,382,328 58.09%
Socnaf
11,506,599 64.51%
2) Non-listed shares
Luxembourg
Terrasia 1,891 18.91%
Induservices 3,500 35.00%
ManagementAssociates 2,000 20.00%
The following pages contain a summary of the activity
and comments on the nancial information for the
past two nancial years of the main companies in
whichSocnholdsadirectorindirectparticipation.
Unless indicated otherwise, equity includes capital,
reserves and the results brought forward before
allocation of current year results.
Corporate data refers to consolidated data.
The balance sheet gures are presented in the
functional currency of the respective entities.
Group prole
Socn
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SOCFINASIA S.A.
SOCFINASIA is a Luxembourg entity which holds stakes
in companies that operate directly or indirectly in
South-East Asia in the rubber and palm-oil sectors.
Sharecapital:EUR24,492,825.
The prot for the year ended 31
st
December 2021
amounts to EUR 45,000,180. The Board of Directors
will propose to the Annual General Meeting on
31
st
May2022thepaymentofadividendofEUR1.40
per share, out of which EUR 0.40 per share has already
been paid at the end of 2021 as an interim dividend
forthenancialyear2021.
Key gures (thousands of EUR)
At 31
st
December 2021 2020
Fixed assets
410,467 314,839
Current assets
41,424 110,955
Equity(*)
446,774 421,368
Borrowings, provisions and third parties
5,117 4,126
Protfortheperiod
45,000 32,139
Distribution
30,480 17,417
Shareprice(EUR)
14.30 14.50
Dividendpershare(EUR)
1.40 0.80
Dividend/marketcapitalisation(%)
9.79 5.52
Socn’sstake(%)
58.09 58.09
(*)Beforeprotallocationbutafterinterimdividend.
Group prole
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Socn
SOCFINAF S.A.
SOCFINAF is a Luxembourg entity holding stakes
in companies that operate directly or indirectly in
tropical Africa, mainly in the rubber and palm oil
sectors.
ShareCapital:EUR35,673,300.
The prot for the year ended 31
st
December 2021
amountstoEUR6,499,115.TheBoardofDirectorswill
propose to theAnnual General Meeting on 31
st
May
2022 not to pay any dividend for the nancial year
2021.
Key gures (thousands of EUR)
At 31
st
December 2021 2020
Fixed assets
469,324 513,290
Current assets
29,901 4,824
Equity
258,796 252,297
Borrowings, provisions and third parties
240,429 265,821
Distribution
0 0
Protfortheperiod
6,499 -28,649
Shareprice(EUR)
12.00 11.10
Dividendpersahre(EUR)
0 0
Dividend/marketcapitalisation(%)
0 0
Socn’sstake(%)
64.51 64.51
Socn
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International market for rubber and palm oil
1. Rubber
SGX - NATURAL RUBBER - 5 years +
SGX - NATURAL RUBBER - 1 year +
50
100
150
200
250
300
50
100
150
200
250
300
2017
2018
2019
2020
2021
$ct/Kg
SGX - NATURAL RUBBER - 5 YEAR S +
R S S3
TSR20
100
120
140
160
180
200
220
240
260
280
300
100
120
140
160
180
200
220
240
260
280
300
jan 2021
feb 2021
mrt 2021
apr 2021
mei 2021
jun 2021
jul 2021
aug 2021
sep 2021
okt 2021
nov 2021
dec 2021
$ct/Kg
SGX - NATURAL RUBBER - 1 YEAR +
R S S3
TSR20
jan 2021
feb 2021
mar 2021
apr 2021
may 2021
jun 2021
jul 2021
aug 2021
sep 2021
oct 2021
nov 2021
dec 2021
International market for rubber and palm oil
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ANNUAL REPORT 2021
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Socn
The international market in 2021
Theaveragenaturalrubberprice(TSR201
st
position
on SGX) for 2021 is USD 1,677/ton FOB Singapore
compared to USD 1,317/ton in 2020, an increase
ofUSD360/ton(+27%).
Converted into euro, the average for the year 2021
isEUR1,417/tonagainstEUR1,154/tonfortheyear
2020,i.e.anincreaseof23%.
The rise in natural rubber prices, which started at
the beginning of the second half of 2020, continued
duringtherstquarterof2021.Pricesbrieyreached
USD 2,000/ton at the end of February before correcting
following the Chinese government’s announcement
that it would control the rise in raw materials.
In the second half of the year, prices stabilised at
betweenUSD1,600and1,800/ton,leavingthisprice
range only on very rare occasions.
The recovery in demand for rubber encouraged by the
economic recovery plans as well as the vaccination
campaigns allowing a resumption of mobility in
the consumer countries, had an upward impact on
the prices and this in a context of reduced supply.
However, the appearance of the Delta variant in the
spring and the Omicron variant in the autumn, which
imposed new containment measures or mobility
restrictions on the various states, limited the rise in
natural rubber prices.
The various sanitary measures also affected rubber
production by limiting tappers’ access to certain
producingcountriessuchasThailandandMalaysia.
The development of a rubber tree disease in Indonesia
has also limited deliveries from the world’s second
largest producer.
Logistical disruptions due to lack of space on ships
from Asia have caused disruptions in the supply of
natural rubber to tyre manufacturers’ factories in the
US and Europe. The sharp increase in freight rates out
ofSouthEastAsiahasgreatlybenetedAfricannatural
rubber producers in terms of demand and valorisation.
Announcements in August by car manufacturers
that they were shutting down parts of their vehicle
production lines in Europe and the US due to a
shortage of semiconductor stocks had a downward
effect on rubber prices. The highly contagious nature
of the Omicron variant has caused large waves of
quarantine, preventing tyre factories from operating
at full capacity due to a lack of workers.
In its latest forecasts dated December 2021, the IRSG
(International Rubber Study Group) now estimates
world natural rubber production in 2021 at 13.79
milliontons,up5.7%on2020,andworldconsumption
at13.88milliontons,up9.4%on2020.Asaresult,the
IRSG estimates a worldproduction decit of 90,000
tons,forthersttimesince2016.
World natural rubber consumption in 2021 exceeded
pre-covid levels in 2019 while world production in
2021 would be almost identical to 2019.
TSR20 1
st
FOB Singapore on SGX closed 2021 at
USD1,783/ton.
Forecasts for 2022
Natural rubber prices at the beginning of the year
remainedaboveUSD1,700/tonwithanaverageover
thersttwomonthsoftheyearreachingUSD1,785/
tonagainstUSD1,628/tonoverthesameperiodlast
year,i.e.anincreaseofUSD157/ton(+10%).
Natural rubber prices were supported at the
fundamental level in the context of a recovery
stimulated by economic recovery plans positively
impacting demand while supply would continue to
be affected by problems related to the availability of
labour in plantations and rubber diseases in Indonesia.
However, the shortage of semiconductors due to the
freight crisis continues to impact the production lines
of car manufacturers and consequently slows down
the demand for rubber for original equipment tyres.
Historically high freight rates out of South East Asia are
expected to persist throughout 2022 due to the lack
of available vessel capacity with a return to normalcy
expected, at best, during 2023. In this context, since
the beginning of the year, African rubber continues to
maintain a clear competitive advantage over its Asian
competitors and, with the approach of the wintering
International market for rubber and palm oil
Socn
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period,benetsfrom substantialpremiumsoverthe
Singapore reference market on approved grades.
At the end of February, rubber prices crossed the
USD 1,800/ton, the upper level of the price range
(USD1,600-1,800/ton)inwhichtheyhadoscillated
for a year, to reach USD 1,835/ton. The Russian
invasion of Ukraine pushing oil above USD 100/barrel
and fears of disrupting supplies of synthetic rubber
from Russia supported natural rubber prices.
As in 2021, China could intervene in the markets to
avoid too large increases in commodity prices and a
negative impact on its economic growth.
The geopolitical context linked to the Russian-
Ukrainian conict will inuence commodity prices,
including natural rubber. In the event of a prolonged
conictimpactingtheglobaleconomicrecovery,the
riskof‘stagation’combininghighinationwithlow
economic growth is real and could weight on rubber
prices. Tyre factories may reduce production due to a
lack of raw materials for tyre production.
Uncertainty related to the evolution of the pandemic
will continue to inuence the evolution of rubber
prices in relation to the effectiveness of vaccination
policies in the world, the emergence of new variants
and a possible deterioration of the health situation
that may affect mobility.
According to IRSG forecasts, global consumption and
production would be almost in balance in 2022. World
supplyofnaturalrubberwouldamountto14.27million
tons(+3.5%comparedto2021)andglobaldemandto
14.29milliontons(+3%comparedto2021).TheIRSG
forecastsaproductiondecitof21,000tonsin2022
compared with 90,000 tons in 2021.
The TSR20 1
st
position FOB Singapore on SGX is quoted
on 9
th
March2022atUSD1,803/ton.
International market for rubber and palm oil
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Socn
2. Palm oil
CIF ROTTERDAM - PALM OILS - 5 years +
CIF ROTTERDAM - PALM OILS - 1 year +
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
201 7
201 8
201 9
202 0
202 1
$/Mton
CIF ROTTERDAM - PALM OILS - 5 YEAR S +
CPO
CP KO
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
jan 2021
feb 2021
mrt 2021
apr 2021
mei 2021
jun 2021
jul 2021
aug 2021
sep 2021
okt 2021
nov 2021
dec 2021
$/Mton
CIF ROTTERDAM - PALM OILS - 1 YEAR +
CPO
CP KO
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
201 2
201 3
201 4
201 5
201 6
201 7
201 8
201 9
202 0
202 1
$/Mton
CIF ROTTERDAM - PALM OILS - 10 YEARS +
CPO
P KO
200
400
600
800
1.000
1.200
1.400
201 7
201 8
201 9
202 0
202 1
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 5 YEARS +
900
1.000
1.100
1.200
1.300
1.400
1.500
jan 2021
feb 2021
mrt 2021
apr 2021
mei 2021
jun 2021
jul 2021
aug 2021
sep 2021
okt 2021
nov 2021
dec 2021
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 1 YEAR +
300
500
700
900
1.100
1.300
1.500
201 2
201 3
201 4
201 5
201 6
201 7
201 8
201 9
202 0
202 1
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 10 YEARS +
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
201 7
201 8
201 9
202 0
202 1
$/Mton
CIF ROTTERDAM - PALM OILS - 5 YEARS +
CPO
CP KO
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
jan 2021
feb 2021
mrt 2021
apr 2021
mei 2021
jun 2021
jul 2021
aug 2021
sep 2021
okt 2021
nov 2021
dec 2021
$/Mton
CIF ROTTERDAM - PALM OILS - 1 YEAR +
CPO
CP KO
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
201 2
201 3
201 4
201 5
201 6
201 7
201 8
201 9
202 0
202 1
$/Mton
CIF ROTTERDAM - PALM OILS - 10 YEARS +
CPO
P KO
200
400
600
800
1.000
1.200
1.400
201 7
201 8
201 9
202 0
202 1
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 5 YEAR S +
900
1.000
1.100
1.200
1.300
1.400
1.500
jan 2021
feb 2021
mrt 2021
apr 2021
mei 2021
jun 2021
jul 2021
aug 2021
sep 2021
okt 2021
nov 2021
dec 2021
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 1 YEAR +
300
500
700
900
1.100
1.300
1.500
201 2
201 3
201 4
201 5
201 6
201 7
201 8
201 9
202 0
202 1
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 1 0 YEAR S +
jan 2021
feb 2021
mar 2021
apr 2021
may 2021
jun 2021
jul 2021
aug 2021
sep 2021
oct 2021
nov 2021
dec 2021
International market for rubber and palm oil
Socn
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ANNUAL REPORT 2021
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13
World palm oil production in millions of tons
(source: Oil World)
2022 (*) 2021 (*) 2020 2019 2018 2017 2015 2005 1995
Indonesia
47.1 45.2 42.8 44.2 41.6 36.8 33.4 14.1 4.2
Malaysia
19.1 18.2 19.1 19.9 19.5 19.9 20.0 15.0 7.8
Other
13.7 13.0 12.2 12.4 11.9 11.2 9.1 4.8 3.2
TOTAL
79.9 76.4 74.1 76.5 73.0 67.9 62.5 33.9 15.2
(*)Estimate.
Production of main types of oils in millions of tons
(source: Oil World)
Oct 2021 to Sep 2022 (*) 2021 (*) 2020 2019 2018 2017 2015 2005 1995
Palm
79.9 76.4 74.1 76.5 73.0 67.9 62.5 33.9 15.2
Soya
61.6 59.4 58.6 56.8 56.8 53.9 48.8 33.6 20.2
Rape
25.3 27.1 25.3 24.9 25.6 25.4 26.3 16.2 10.8
Sunower
21.9 18.9 21.3 20.7 19.0 19.0 15.1 9.7 8.7
Palm kernel
8.3 7.9 7.8 8.1 7.7 7.2 6.8 4.0 2.0
Cotton
4.5 4.4 4.6 4.6 4.7 4.2 4.7 5.0 3.9
Peanut
4.5 4.2 4.2 3.7 4.0 4.2 3.7 4.5 4.3
Coconut
3.0 2.7 2.6 2.9 2.9 2.4 2.9 3.2 3.3
TOTAL
209.0 201.0 198.5 198.2 193.7 184.2 170.8 110.1 68.4
(*)Estimate.
The international market 2021
The average CIF Rotterdam crude palm oil price for
2021 is USD 1,195/ton compared toUSD715/ton in
2020.
2020 was marked by the Covid-19 pandemic, which
severely disrupted the commodity market. With
lockdowns and shutdown of entire sectors of the
economy, palm oil demand had slowed sharply and
prices collapsed, falling below the USD 500/ton
thresholdinMay2020.
From the second half of 2020 onwards, palm oil prices
experienced a spectacular rebound which continued
throughout 2021.
Indeed, the pandemic and lockdown measures have
also impacted the global supply of palm oil. Trafc
restrictions have led to labour shortages in some parts
of Southeast Asia hampering the harvesting process.
As a result, foreign workers, who account for nearly
70% of the labour force in plantations in Malaysia,
were unable to travel to the country, which severely
disrupted harvest operations.
In addition, there is a drop in yields caused by a
reduction in the use of fertilisers and by the possible
ageing of certain orchards, a direct consequence of
the low price levels of recent years.
This contraction in supply, combined with a massive
return in demand following lockdowns, has led to a
verysignicantriseinpalmoilprices.ThepriceofCIF
RotterdampalmoilhasrisenfromUSD500/toninMay
2020tooverUSD1,300/toninMay2021,anincrease
of160%inoneyear.
Duringthis period,palm oilalso benetedfrom the
rise in soybean prices, driven by very strong demand
from China for American soybeans. At the same
time, palm oil exports to India, China and Pakistan
intensied,increasingpressureonproducercountries’
stocks.
International market for rubber and palm oil
14
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ANNUAL REPORT 2021
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Socn
However, prospects for higher production, slower
exports and lower soybean prices caused palm oil
prices to fall in June. The CIF Rotterdam CPO was
close to USD 1,000/ton.
ConcernsaboutlabourshortagesinMalaysiaandthe
release of lower than expected production forecasts
for the second half of the year caused prices to rise
again in July.
On 31
st
December 2021, the CIF Rotterdam CPO was
trading at around USD 1,350/ton and on 15
th
March
2022ataroundUSD1,775/ton.
Forecasts 2022
After an unprecedented decline in 2020, palm oil
productionincreasedin 2021to around76.4 million
tons. The increase should continue in 2022 with
production expected to be close to 80 million tons,
according to analysts.
Indeed,theincreaseduseoffertilizers(favouredby
the more remunerative prices of recent months),
andtheliftingoftrafcrestrictionsallowingareturn
of labour to the elds, should improve yields and
increase production.
However, there are several uncertainties about
the recovery of palm oil production. The Malaysian
authorities have been working on a plan to speed
up the return of foreign workers to the plantations,
but questions remain about its implementation. In
addition, soaring fertiliser prices and longer delivery
times could limit the expected increase in yields.
Indonesia, the world’s largest producer and exporter,
is concerned about its domestic market and therefore
decided at the end of January to restrict its palm oil
exports, while global demand is rising. Tight supply
contributed to an acceleration of the price increase
in February.
AttheendofFebruary,theRussian-Ukrainianconict
put the vegetable oil market on edge. Ukraine alone
supplies more than 50% of the world’s sunower
oil production for food and biofuels.The conict is
therefore causing great uncertainty about the supply
ofsunoweroil,leadingbuyerstoturntoalternative
vegetable oils: soya, rapeseed, palm, whose prices
have soared.
At the beginning of March, the CPO CIF Rotterdam
broke through the historic threshold of USD 2,000/ton,
anincreaseofnearly50%sincethebeginningofthe
year.
The global supply of vegetable oils on the markets
should therefore play a decisive role in the evolution
of palm oil prices in 2022. Soaring oil prices, with a
barrelpassingtheUSD100markinearlyMarch,also
make palm oil more attractive as a raw material for
biodiesel.
Finally, the fears linked to the pandemic have not
been fully addressed. The emergence of new variants
or the introduction of new restrictions cannot be ruled
out and could once again upset the fundamentals,
impacting supply as well as demand.
The price of CIF Rotterdam crude palm oil on 9
th
March
2022 was around USD 2,000/ton.
Socn
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Environment and social responsibility
On 30
th
March2022,theGroupapprovedtheupdate
of its responsible management policy renewed
and reinforced in 2021 in order to comply with the
GPSNR (Global Platform for Sustainable Natural
Rubber) policy. This responsible management policy
is based on the Group’s three pillars of commitment,
alongside its specic commitment to transparency:
rural development, workers and local communities,
and the environment. These commitments form the
basis of key initiatives aimed at improving long-term
economic performance, social well-being, health,
safety and natural resource management.
An implementation plan for this policy has been
denedandimplementedthroughout2021.
The efforts and actions undertaken by the Socn
Group in this area are detailed in a regularly updated
dashboard as well as in a separate annual report
(“SustainableDevelopmentReport”).
The responsible management policy, the dashboard
and the annual sustainable development report are
available on the Group’s website.
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1. Activity Indicators
Area (hectares) Rubber Palm
At 31
st
December 2021
Immatures(byyearofplanting)
2021
742 2,764
2020
1,190 2,325
2019
1,528 1,904
2018
2,405 0
2017
1,989 0
2016
1,648 0
2015
1,986 0
2014
1,920 0
2013
370 0
2012
181 0
2011
353 0
2010
49 0
Total immatures
14,360 6,993
Young (from8to11years)
17,249 (from4to7years) 32,243
Matured (from12to22years)
21,011 (from8to18years) 49,477
Old (above22years)
9,206 (above18years) 41,379
TOTAL in production
47,466 123,099
TOTAL
61,826 130,093
Area (hectares) 2021 2020 2019 2018 2017
Palm
130,093 129,934 129,667 130,575 128,188
Rubber
61,826 62,560 63,190 63,726 63,885
TOTAL
191,919 192,494 192,857 194,301 192,073
Production 2021 2020 2019 2018 2017
Palm Oil (tons)
536,508 503,926 468,441 456,781 432,470
Own production
489,733 468,303 434,013 426,227 407,741
Third party purchases
46,775 35,623 34,428 30,554 24,730
Rubber (tons)
167,278 160,411 162,975 144,845 129,672
Own production
70,880 64,082 68,873 62,895 63,374
Third party purchases
96,397 96,329 94,102 81,950 66,297
Seeds (thousands)
Own production
15,030 9,454 6,308 14,875 14,149
Key gures
Key gures
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Turnover (EUR million)
2021 2020 2019 2018 2017
Palm
471 347 309 306 315
Rubber
234 183 200 163 192
Other agricultural products
6 4 4 9 9
Trading activities
119 64 72 56 101
Other
8 7 7 7 9
TOTAL
838 605 592 541 626
Staff 2021 2020 2019 2018 2017
Average workforce
34,945 33,834 34,916 33,780 31,312
2. Key gures in the consolidated income statement
(EUR million)
2021
2020
2019 2018 2017
Turnover
838 605 592 541 626
Operating income
235 92 81 91 132
Result of the year attributable to the Group
80 6 9 17 26
EBITDA(*)
294 172 152 153 198
Operatingcashow
252 141 93 87 172
Freecashow(**)
179 59 -20 -20 70
(*)EBITDA=Earningsbeforeinterest,taxes,depreciationandamortisation.
(**)FreeCashFlow=Cashowfromoperatingactivities+cashowfrominvestingactivities.
3. Key gures in the consolidated statement of nancial position
(EUR million)
2021
2020
2019 2018 2017
Bearer biological assets
479 468 520 512 480
Other non-current assets
370 339 361 356 331
Current assets
329 224 227 209 228
Total equity
737 576 640 642 624
Non-current liabilities
212 136 237 171 183
Current liabilities
228 319 229 263 232
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Stock market data
(EUR)
2021 2020 2019 2018 2017
Number of shares
14,159,720 14,159,720 14,159,720 14,159,720 14,159,720
Equity attributable to the owners of
the Company
380,256,719 284,874,406 317,582,175 304,236,433 304,236,433
Undilutednetprotpershare
5.68 0.33 0.64 0.98 1.81
Dividend per share
0.60 0.00 0.55 0.55 0.60
Share price
Minimum
18.60 18.20 23.20 23.80 23.31
Maximum
24.00 27.00 29.00 30.40 32.50
Closing
20.80 23.20 26.60 28.00 31.00
Marketcapitalisation(*)
294,522,176 328,505,504 376,648,552 396,472,160 438,951,320
Dividendpaid/netprotattributableto
the owners of the Company
10.56% N/A 85.94% 56.12% 33.15%
Dividends / market capitalisation
2.88% N/A 2.07% 1.96% 1.94%
Marketprice/undilutednetprotpershare
3.66 70.30 41.56 28.57 17.13
(*)Marketcapitalisationistheproductofthenumberofsharesmultipliedbytheclosingmarketprice.
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Corporate governance statement
1. Introduction
Socnpayscloseattentiontotheevolutionoftheten
principles of corporate governance of the Luxembourg
Stock Exchange. It commits to provide the necessary
explanations for a comprehensive understanding on
how the Company functions.
Corporate governance is a set of principles and
rules whose main objective is to contribute to long-
term value creation. It allows the Board to promote
the interests of the Company and its shareholders
while putting in place effective control systems,
managementofrisksandconictsofinterests.
2. Corporate governance chart
The Board of Directors adopted the corporate
governance chart on 21
st
November 2018. It has been
updated on 30
th
March 2022 and is available onthe
Group’s website.
3. Board of Directors
Composition of the Board of Directors
Name Nationality
Year of
Birth
Position
First
nomination
Term of Ofce
Mr.HubertFabri Belgian 1952 Chairman
(a)
AGO 1981 AGO2027
Mr.VincentBolloré French 1952 Director
(a)
AGE 1990 AGO 2025
Administration and Finance Corporation
"AFICO"RepresentedbyMr.LucBoedt
Belgian 1955 Director
(b)
AGO 2014 22/02/2022
Mr.FrançoisFabri Belgian 1984 Director
(b)
AGO 2014 AGO2026
Mr.PhilippeFabri Belgian 1988
Executive
Director
(b)
AGO 2020 AGO2026
(a)Non-ExecutiveDependentDirector
(b)ExecutiveDependentDirector
The mandate of Administration and Finance
Corporation “AFICO”,outgoing Director,expires this
year. As the latter does not wish to stand again, it will
beproposedatthenextGeneralMeetingtoappoint
Mr. Cyrille Bolloré for a term of six years, expiring
duringtheGeneralMeetingof2028.
On the other hand, the Board of Directors takes note
of the resignation of Mr.Philippe deTrauxfrom his
mandate as director. It will not be proposed to the
GeneralMeetingtoprovideforhisreplacement.
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Corporate governance statement
Other mandates held by the directors in listed companies
Hubert Fabri
Chairman
Positions and ofces held in Luxembourg companies
• ChairmananddirectoroftheBoardofDirectorsofSociétéFinancièredesCaoutchoucs“Socn”,Socnaf
andSocnasia.
Positions and ofces held in foreign companies
• ChairmanandDirectoroftheBoardofDirectorsofPalmeraiesdeMopoli;
• Vice-ChairmanofSociétédesCaoutchoucsduGrandBereby“SOGB”;
• Vice-ChairmanandmemberoftheSupervisoryBoardofCompagnieduCambodge;
• Director of Compagnie de l’Odet, Financière Moncey, Okomu Oil Palm Company, S.A.F.A. Cameroon
“Safacam”,SociétéIndustrielleetFinancièredel’ArtoisandLaForestièreEquatoriale;
• Permanent representative of Administration and Finance Corporation “AFICO” at the Board of Société
CamerounaisedePalmeraies“Socapalm”.
Vincent Bolloré
Director
Positions and ofces held in Luxembourg companies
• DirectorofSociétéFinancièredesCaoutchoucs“Socn”,SocnafandSocnasia.
Positions and ofces held in foreign companies
• ChairmanandchiefExecutiveofcerofCompagniedel’Odet;
• Vice-ChairmanofSociétédesCaoutchoucsduGrandBereby“SOGB”;
• DirectorofCompagniedel’Odet;
• Permanent representative of Bolloré Participations SE on the Boards of Directors of S.A.F.A. Cameroon
“Safacam”, Sociétédes Caoutchoucsdu Grand Bereby«SOGB» and SociétéCamerounaise dePalmeraies
“Socapalm”.
Administration and Finance Corporation “AFICO”
Director
Positions and ofces held in Luxembourg companies
• DirectorofSociétéFinancièredesCaoutchoucs“Socn”andSocnasia.
Positions and ofces held in foreign companies
• DirectorofSociétédesCaoutchoucsduGrandBereby“SOGB”,SociétéIndustrielleetFinancièredel’Artois
andSociétéCamerounaisedePalmeraies“Socapalm”.
Corporate governance statement
Socn
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François Fabri
Director
Positions and ofces held in Luxembourg companies
• DirectorofSociétéFinancièredesCaoutchoucs“Socn”,SocnafandSocnasia;
• ExecutiveDirectorofSocnaf.
Positions and ofces held in foreign companies
• PermanentRepresentativeofAdministrationandFinanceCorporation“AFICO”ontheBoardofSociétédes
CaoutchoucsduGrandBereby“SOGB”andSociétéIndustrielleetFinancièredel’Artois;
• ManagingDirectorofPalmeraiesdeMopoli;
• DirectorofS.A.F.A.Cameroon«Safacam»andSociétéCamerounaisedePalmeraies“Socapalm”.
Philippe Fabri
Executive Director
Positions and ofces held in Luxembourg companies
• DirectorofSociétéFinancièredesCaoutchoucs“Socn”,SocnafandSocnasia;
• ExecutiveDirectorofSociétéFinancièredesCaoutchoucs«Socn».
Positions and ofces held in foreign companies
• MemberoftheSupervisoryBoardofPalmeraiesdeMopoli;
• Permanent representative of Société Anonyme Forestière et Agricole “SAFA” on the board of S.A.F.A.
Cameroon“Safacam”.
Appointments of Directors
The Board of Directors proposes the appointment
of the Directors at the Annual General Meeting of
shareholders.
In the event of a vacancy due to death or following the
resignation of one or more Directors, the remaining
Directors will proceed to temporary co-optations.
These co-optations will be subject to the approval of
theAnnualGeneralMeetingatitsnextmeeting.The
Director appointed to replace another Director will
complete the term of his predecessor.
Role and powers of the Board of Directors
The Board of Directors is the body responsible for
the management of the Company and the control of
day-to-day management. It acts in the interest of the
Company.
TheBoardofDirectorsensuresthatallnancialand
human resources are available and ensures that all
the necessary structures are in place to achieve its
objectives and ensure long-term value creation.
The Articles of Association empower the Board of
Directors to perform all actions necessary to achieve
the corporate purpose.
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Corporate governance statement
Activity report of the Board of Directors
Number of meetings
At least two for the end and mid-year evaluations.
Duringthe2021nancialyear,theBoardofDirectors
met 5 times.
Topics generally discussed
Periodicaccountingsituations;
Portfoliomovements;
Inventoryandvaluationoftheportfolio;
Evolutionofsignicantholdings;
Managementreport;
Investmentprojects;
Corporate, social and environmental responsibility.
Average attendance rate of Directors
-2021:93%
-2020:92%
-2019:92%
-2018:97%
-2017:96%
4. Committees of the Board of Directors
4.1. Audit Committee
The Committee is composed of three members, of
which 2 are independents and one of them assigned
as President of the Audit Committee. The members of
the Audit Committee are appointed for one year and
are eligible for re-election. This Audit Committee is
effective as of 1
st
January 2022 and has been in charge
ofthesupervisionofthepreparationofthenancial
information for the year 2021.
The Board of Directors has proposed that it will be
constitutedasfollows:
9 Mrs.ValérieHortefeux(IndependentMember)
9 Mr.FrédéricLemaire(IndependentMember)
9 Mr.PhilippeFabri(Director)
The appointment of the non-executive members will
beconrmedattheGeneralMeetingofShareholders
on 31
st
May2022.
The Audit Committee will assist the Board of Directors
in its supervisory function and is responsible of the
monitoring of the nancial reporting, the audit
process,theanalysisandcontrolofnancialrisks.
The Audit Committee shall meet three times a year.
4.2. Appointment and Remuneration Committee
The remuneration of the operational management of
Socnissetbytheprincipalshareholders.TheBoard
of Directors does not consider it necessary to set up
a Remuneration Committee. Similarly, for practical
reasons and due to the size of the Company, the Board
of Directors has chosen not to set up a Nomination
Committee.
Corporate governance statement
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5. Remunerations
The remuneration allocated to the members of the
BoardofDirectorsofSocnforthenancialyear2021
amountstoEUR7,864,842comparedtoEUR7,549,913
for the nancial year 2020. The Directors of Socn
did not receive any other payment in shares (stock
options).
6. Shareholding status
Shareholder
Number of Shares held =
Number of Voting Rights (*)
Percentage holding Date of notication
GeselnaS.A.
FL-9490Vaduz 24.25 02/01/2017
AFICO S.A.
L-1650Luxembourg 2,596,352 18.33 02/01/2017
Twosun Fin. S.A.
FL-9490Vaduz 11.65 02/01/2017
Hubert Fabri 1,000 0.01 02/01/2017
Total Hubert Fabri interests
(direct and indirect) 54.24
Bolloré Participations S.A.
F-29500 Ergué Gaberic 1,000 0.01 29/10/2021
Bolloré SE
F-29500 Ergué Gaberic 2,110,698 14.91 29/10/2021
Compagnie du Cambodge
F-92800 Puteaux 1,747,220 12.34 29/10/2021
Technin
CH-1705Fribourg 1,416,062 10.00 29/10/2021
Plantations des Terres Rouges
L-1724Luxembourg 268,080 1.89 29/10/2021
Compagnie des Glénans
F-29500 Ergué Gaberic 80,000 0.56 29/10/2021
Compagnie de l’Odet
F-29500 Ergué Gaberic 5,534 0.04 29/10/2021
Total Bolloré Participations SE interests
(direct and indirect) 5,628,594 39.75
Corporate governance statement
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7. Financial calendar
31
st
May2022 AnnualGeneralMeetingatnoon
9
th
June2022 Paymentofthebalanceofdividendfor2021(couponnumber80)
End of September 2022 Half year stand alone and consolidated results as at 30
th
June 2022
Mid-November2022 InterimManagementstatementfor3
rd
quarter of 2022
EndofMarch2023 Annualstandaloneresultsasat31
st
December 2022
Mid-April2023 Consolidatedannualresultsasat31
st
December 2022
Mid-May2023 InterimManagementstatementforthe1
st
quarter of 2023
30
th
May2023 AnnualGeneralMeetingatnoon.
The results of the Company are published on the website of the Luxembourg Stock Exchange www.bourse.lu
andonthewebsiteoftheCompanywww.socn.com.
8. External audit
Independent statutory auditor (Réviseur
d’entreprises agréé)
Ernst&Young“EY”
35E Avenue John F. Kennedy
L-1855 Luxembourg.
In2021,theauditfeesamounttoEUR1,387,989VAT
included.
The audit fees include all fees paid to the independent
statutory auditor of the Group, as well as those paid
tomemberrmswithintheirnetworkfortheyear.No
consulting work or other non-audit services have been
performed by those companies in 2021.
9. Corporate, social and environmental responsibility
On 30
th
March,2022,theGroupapprovedtheupdate
of its responsible management policy renewed
and reinforced in 2021 in order to comply with the
GPSNR (Global Platform for Sustainable Natural
Rubber) policy. This responsible management policy
is based on the Group’s three pillars of commitment,
alongside its specic commitment to transparency:
rural development, workers and local communities,
and the environment. These commitments form the
basis of key initiatives aimed at improving long-term
economic performance, social well-being, health,
safety and natural resource management.
An implementation plan for this policy has been
denedandimplementedthroughout2021.
The efforts and actions undertaken by the Socn
Group in this area are detailed in a regularly updated
dashboard as well as in a separate annual report
(“SustainableDevelopmentReport”).
The responsible management policy, the dashboard
and the annual sustainable development report are
available on the Group’s website.
10. Other information
PursuanttotheRegulation2016/347oftheEuropean
Commission of 10
th
March 2016 specifying the
modalities for updating insider lists, a list of insiders
has been drawn up and is updated continuously.
The persons concerned have been informed of their
inclusion on this list.
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Statement of compliance
Mr.PhilippeFabri,DirectorandMr.DanielHaas,ChiefFinancialOfcer,indicatethat,totheirknowledge:
(a)theconsolidatednancialstatementspreparedfortheyearendedat31
st
December 2021, in accordance
with the international accounting standards adopted by the European Union, provide a true and fair view of
theassetsandliabilities,thenancialpositionandtheprotsorlossesattributabletoSocnandallofthe
entitiesincludedinconsolidation;and
(b)themanagementreportfairlypresentstheevolutionandresultsoftheCompany,thenancialpositionofthe
Group and all the entities included in the consolidation and a description of the main risks and uncertainties
they face.
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Consolidated management report
Directors’ report on the consolidated nancial statements
presented by the Board of Directors to the
Annual General Meeting of the Shareholders of 31
st
May 2022
Ladies and Gentlemen,
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated nancial statements as at
31
st
December2021includethenancialstatementsof
Socn,allsubsidiariesanddirectandindirectassociate
companies, the details of which are given in Note 2 of
thenotestotheconsolidatednancialstatements.
As stated in Note 1 of the notes to the consolidated
nancial statements, the consolidated nancial
statements have been prepared in accordance with
International Financial Reporting Standards or IFRS as
adopted by the European Union. Socn (the Group)
adopted IFRS standards for the rst time in 2005
and all the standards applicable to the Group as of
31
st
December 2021 have been implemented.
Consolidated results
For the 2021 nancial year, the result attributable
to the Group of the parent company amounted to
EUR80.4millioncomparedtoEUR4.7millionin2020.
This resulted in net earningsof EUR 5.68 per share
against EUR 0.33 in 2020.
Consolidated revenue at 31
st
December 2021 amounted
toEUR837.6millioncomparedtoEUR605.3million
in2020(EUR+232.3million).Thischangeinrevenue
is mainly due to increase in the price (EUR +138.1
million), increase in the quantities sold (EUR +60.9
million),depreciationoftransactionalcurrencyversus
Euro(EUR-22.8million),aswellastheincreaseinthe
turnover of non-manufactured products (EUR +53.1
million).
Operating prot amounted to EUR 235.3 million
compared to EUR 91.9 million at 31
st
December 2020.
OthernancialincomeincreasedtoEUR11.6million
comparedtoEUR6.2millionat31
st
December 2020.
They mainly consisted of foreign exchange gains of
EUR 8.1 million.
Financial expenses amounted to EUR 22.9 million
compared to EUR 32.9 million at 31
st
December 2020.
They mainly consist of foreign exchange losses of
EUR 10.8 million, interest expense of EUR 10.1 million
and other expenses of EUR 2.0 million.
The tax expense has increased. Income taxes
amountedtoEUR53.5millioncomparedtoEUR36.6
million in 2020. Deferred income tax amounted to
EUR-0.8millioncomparedtoEUR1.6millionin2020.
Consolidated statement of nancial position
TheassetsofSocnconsistof:
- non-current assets of EUR 848.4 million compared
to EUR 807.0 million as of 31st December 2020;
an increase of EUR 41.4 million mainly due to
the increase in property, plant and equipment of
EUR25.6millionandtheincreaseofthenoncurrent
biologicalassetsforEUR11.3million;
- current assets amounting to EUR 329.0 million
compared with EUR 224.0 million at 31
st
December
2020 mainly due to the increase of the cash and
cash equivalents for EUR 84.4 million, in trade
receivables for EUR 8.0 million and in inventories
for EUR 12.2 million.
Shareholders’ equity amounted to EUR 380.3 million
compared to EUR 284.9 million at 31
st
December
2020. The increase in shareholders’ equity of EUR
95.4millionismainlyduetotheprotfortheperiod
(forEUR80.4million)andthevariationoftranslation
reserve(impactofEUR+16.0million).
On the basis of the consolidated shareholders’ equity,
the net value per share before distribution of dividend
is EUR 26.85 against EUR 20.12 the previous year.
At 31
st
December 2021, the share price stands at
EUR 20.80.
Consolidated management report
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Current and non-current liabilities decreased to
EUR 440.5 million compared to EUR 455.2 million the
previous year. The difference is mainly due to the
decrease for EUR 42.3 million in net borrowings, and
theincrease forEUR16.1 millioninthe currenttax
liabilities.
Consolidated cash ow
At 31
st
December 2021, cash and cash equivalents
amounttoEUR137.3million,anincreaseofEUR83.1
millionfortheyear(comparedtoanincreaseofEUR
8.5millioninthepreviousnancialyear).
Net cash ow from operating activities amounts to
EUR 251.6 million in nancial year 2021
(EUR 140.9 million in 2020) and cash ow from
operationsamountstoEUR278.0millioncomparedto
EUR159.9millioninthepreviousnancialyear.
Cash ow from investing activities amounts to
EUR-73.1million(comparedtoEUR-81.4millionin2020).
Cash ow from nancing activities amounts to
EUR -98.3 million (compared to EUR -46.4 million
in2020).It relatesprimarily tothe decrease innet
borrowing of EUR -53.1 million and to the payment of
dividends of EUR -33.5 million.
FINANCIAL INSTRUMENTS
Financial risk management policies are described in the notes to the consolidated nancial statements of the
Company(refertoNotes25and34).
OUTLOOK 2022
The results for the next nancial year will depend,
to a large extent, on factors which are external to
the Group management, namely the political and
economic conditions in the countries where the
subsidiaries are established, the changes in the price
of rubber and palm oil, and the price of the Indonesian
rupiah and the US dollar against the Euro. The Group,
for its part, pursues its policy of keeping cost prices as
low as possible and improving its production capacity.
POLITICAL AND ECONOMIC ENVIRONMENT
The Company holds interests in subsidiaries which operate indirectly in Africa and Southeast Asia.
Given the economic and political instability in some of these countries, these holdings present a risk in terms of
exposure to political and economic changes.
Consolidated management report
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EVENTS AFTER THE CLOSING DATE
Russia – Ukrain conict
In February 2022, a number of countries (including
theUS,UKandEU)imposedsanctionsagainstcertain
entities and individuals in Russia as a result of the
ofcialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Announcements of potential additional sanctions have
been made following military operations initiated by
Russia against the Ukraine on 24
th
February 2022.
Due to the growing geopolitical tensions, since
February2022,therehasbeenasignicantincrease
in volatility on the securities and currency markets, as
wellasasignicantdepreciationoftherubleagainst
the US dollar and the euro. It is expected that these
events may affect the activities of Russian enterprises
in various sectors of the economy.
The company regards these events as non-adjusting
events after the reporting period. Although neither
the company’s performance and going concern nor
operations, at the date of this report, have been
signicantly impacted by the above, the Board of
Directors continues to monitor the evolving situation
anditsimpactonthenancialpositionandresultsof
the company.
Early partial repayment of loan
As of 25
th
February 2022, Socn prepaid an amount
ofUSD25,000,000i.e.EUR22,409,466ofitsdebtto
PNS Ltd.
PNS Ltd itself repaid early an amount of USD
25,000,000 of its bank loan.
IMPACT OF THE COVID-19 CRISIS
In 2020, in addition to the sanitary measures taken
and described in the Sustainable Development Report,
the Group had limited the tapping of rubber trees
of the most productive plots at the beginning of the
Covid-19 crisis. In 2021, the tapping of rubber trees on
these sites was restarted.
This health crisis had no impact on the palm oil
business.
ThenancialforecastsoftheCompanyfortheyears
2022 and 2023, the sustained levels of market prices
in this rst tranche of the year indicate that the
activity will generate sufcient cash to meet the
Group’s obligations and ensure the going concern of
the operations.
CORPORATE GOVERNANCE
The Board of Directors implements the corporate
governance rules applicable in the Grand Duchy of
Luxembourg in the Group’s nancial structure and
reports.
Further information on how the rules are implemented
is available in the corporate governance statement in
the annual report and in the management report on
theCompany’sstandalonenancialstatements.
Consolidated management report
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GENERAL INTERNAL CONTROL SYSTEM ADAPTED TO THE GROUP’S
SPECIFIC ACTIVITIES
Segregation of functions
The segregation of operational, commercial and
nancial functions implemented at each level of
the Group reinforces the independence of internal
control.
These different functions ensure the completeness
and reliability of the information which is within their
areas of responsibility. They provide regular updates
of the completeness of information to local managers
and to the Group’s headquarters (agricultural and
industrial production, trade, human resources,
nance,etc).
Autonomy and accountability of subsidiaries
The operational entities have a large degree of
autonomy in their management due to geographical
distances. They are, in particular, responsible for
the implementation of an internal control system
adapted to the nature and extent of their activity,
the optimisation of their operations and nancial
performances, the protection of their assets and
management of their risks.
This autonomy makes it possible for the entities to
be more accountable and to ensure the adequacy
between their practices and the legal framework of
their host country.
Centralised control
The Human Resources Management policy of the
top management of the entities within the Group is
centralised at the Group’s headquarters. It contributes
to the smooth running of an effective internal control
system through the independence of recruitment, the
harmonisation of the segregated functions, annual
evaluations and training programs.
The operational,commercial and nancialfunctions
centrallydeneasetofstandardreportswhichensure
the homogeneity of the presentation of information
originating from the subsidiaries.
Treasury reporting process
The treasury department organises, supervises and
controls the reporting of daily information and weekly
indicators of the subsidiaries and, in particular, the
cashowposition,theevolutionofnetdebtandthe
expenses related to the investments.
Financial reporting process
The nancial department organises, supervises
and controls the reporting of monthly accounting,
budgetary and nancial information and distributes
condensed reports for use by the Group’s operational
management.
Twice per year, it includes this information in the long-
term development plan of the subsidiaries. It also
ensurestheimplementationofthenancialdecisions
taken by the Board of Directors of the subsidiaries.
Preparation of consolidated accounts
The consolidated nancial statements are prepared
on a half-yearly basis. They are audited annually by
the external auditorsas part of a nancialauditof
subsidiaries, which covers both the statutory accounts
of the entities in the scope of consolidation and the
consolidatednancialstatements.
Once approved by the Board of Directors, they are
published.
The consolidation department of the Group
guarantees homogeneity and treatment monitoring
for all companies within the scope of consolidation. It
strictly adheres to the accounting standards in force
relating to consolidation operations. It uses a standard
consolidation tool to ensure the secure processing
of information feedback from subsidiaries, the
transparency and relevance of automatic consolidation
processes and the consistency of presentation of
accounting aggregates in the annual report. Lastly,
due to the complexity of the accounting standards
in force and the many specicities related to their
implementation, the consolidation service centralises
the adjustments specic to the valuation rules
applicabletotheconsolidatednancialstatements.
Consolidated management report
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ENVIRONMENT AND SOCIAL RESPONSIBILITY
On 30
th
March2022,theGroupapprovedtheupdate
of its responsible management policy renewed
and reinforced in 2021 in order to comply with the
GPSNR (Global Platform for Sustainable Natural
Rubber) policy. This responsible management policy
is based on the Group’s three pillars of commitment,
alongside its specic commitment to transparency:
rural development, workers and local communities,
and the environment. These commitments form the
basis of key initiatives aimed at improving long-term
economic performance, social well-being, health,
safety and natural resource management.
An implementation plan for this policy has been
denedandimplementedthroughout2021.
The efforts and actions undertaken by the Socn
Group in this area are detailed in a regularly updated
dashboard as well as in a separate annual report
(“SustainableDevelopmentReport”).
The responsible management policy, the dashboard
and the annual sustainable development report are
available on the Group’s website.
The Board of Directors
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Report on the audit of the consolidated nancial
statements
Opinion
Wehaveauditedtheconsolidatednancialstatements
of Société Financière des Caoutchoucs S.A. and
its subsidiaries (the “Group”), which comprise the
consolidatedstatementofnancialpositionasat31
December 2021, and the consolidated statement of
comprehensive income, the consolidated statement
of changes in equity and the consolidated statement
ofcashowsfortheyearthenended,andthenotes
totheconsolidatednancialstatements,includinga
summaryofsignicantaccountingpolicies.
In our opinion, the accompanying consolidated
nancialstatementsgiveatrueandfairviewofthe
consolidated nancial position of the Group as at
31December2021,andofitsconsolidatednancial
performanceandconsolidatedcashowsfortheyear
then ended in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the
European Union.
Basis for opinion
We conducted our audit in accordance with EU
RegulationN°537/2014,theLawof23July2016onthe
auditprofession(the“Lawof23July2016”)andwith
InternationalStandardsonAuditing(“ISAs”)asadopted
for Luxembourg by the “Commission de Surveillance
du Secteur Financier” (“CSSF”). Our responsibilities
under the EU Regulation Nº 537/2014, the Law of
23 July 2016 and ISAs are further described in the
“Responsibilitiesofthe“réviseurd’entreprisesagréé”
fortheauditoftheconsolidatednancialstatements”
section of our report. We are also independent of the
Group in accordance with the International Ethics
Standards Board for Accountants’ Code of Ethics for
ProfessionalAccountants (“IESBA Code”) as adopted
for Luxembourg by the CSSF together with the ethical
L-1650
Luxembourg
4, Avenue Guillaume
Socn S.A.
To the Shareholders of
INDEPENDENT AUDITOR’S REPORT
Auditor’s report on the consolidated nancial statements
impairment to be recognised, if any.
determines
the
impairment
loss
or
the
reversal
of
recoverable amount of the biological assets and thus
is
identied,
Group
management
determines
the
reversal at the balance sheet date. When an indicator
indicator of impairment or any indicator of impairment
by Group management to assess whether there is any
nancial
statements
describes
the
methodology
used
The note 9 «Impairment of assets» of the consolidated
accumulated depreciation and any impairment losses.
Equipment».
These
assets
are
recognised
at
cost
less
the
principles
dened
in
IAS
16
«Property,
Plant
and
and rubber plantations, are valued in accordance with
These biological assets, which consist mainly of oil palm
The
Group
owns
biological
assets
in
Africa
and
Asia.
total
assets
of
EUR
1,177
million.
biological
assets
amounted
to
EUR
479
million
out
of
As
at
31
December
2021,
the
value
of
the
Group’s
Risk identied
Valuation of biological assets
these matters.
thereon, and we do not provide a separate opinion on
statements
as
a
whole,
and
in
forming
our
opinion
the
context
of
the
audit
of
the
consolidated
nancial
the current period. These matters were addressed in
our
audit
of
the
consolidated
nancial
statements
of
professional
judgment,
were
of
most
signicance
in
Key
audit
matters
are
those
matters
that,
in
our
Key audit matters
a basis for our opinion.
have
obtained
is
sufcient
and
appropriate
to
provide
requirements. We believe that the audit evidence we
our other ethical responsibilities under those ethical
consolidated
nancial
statements,
and
have
fullled
requirements
that
are
relevant
to
our
audit
of
the
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Auditor’s report on the consolidated nancial statements
TheindicatorsusedbyGroupManagementare:
• a decrease or an increase of the listed price of
naturalrubber(TSR201stpositiononSGX)andthe
listedpriceofcrudepalmoil(CIFRotterdam)atthe
balancesheetdatehigherthan15%comparedtoa
ve-year average of theprices observedonthose
markets
• a decrease or an increase of the six-month average
of the prices observed of those markets higher than
15%comparedtoave-yearaverageoftheprices
observed on those markets
• a decrease or an increase of the twelve-month
average of the prices observed of those markets of
morethan15%comparedtoave-yearaverageof
the prices observed on those markets
For palm oil, which is mainly sold on local markets,
Group Management also analyses local sales prices,
considering that a decrease or an increase in these
prices at the balance sheet date higher than 15%
compared to a ve-year average value of the local
prices constitutes an indicator of impairment or an
indicator of impairment reversal respectively.
In addition to these external factors, the Group
analyses the following internal performance
indicators:
- Specicities of the local market (evolution of
supplyanddemand,...);
-Physicalindicationsofimpairment;
-Signicantchanges intheplantationsthat could
haveamaterialimpactonfuturecashows.
The recoverable amount is determined as the higher
of the value in use and the fair value less costs of
disposal. The value in use is dened in terms of
discounted future net cash ows and involves
signicant judgements and estimations by Group
Management, including nancial forecasts and the
utilization of appropriate discount rates.
We considered the valuation of biological assets to be
akeyauditissuebecauseof:
- their signicance in relation to the Group’s total
assets
- the assessment of whether there is any indicator of
impairmentoranyindicatorofimpairmentreversal;
and
- the determination of their recoverable amount
whichinvolvessignicantjudgementsandestimates.
Audit response
In order to assess the reasonableness of an indicator
of impairment or an indicator of impairment reversal
and, where appropriate, to determine the recoverable
amount of biological assets, we performed the
followingauditprocedures:
• Assess the compliance of Group’s management’s
methodology with the provisions of IAS 36
«ImpairmentofAssets»;
• Analyze the methodology used with a particular
focus on the indicators of impairment or on the
indicatorsofimpairmentreversal;
• Analyze the completeness of indicators of
impairmentorindicatorsofimpairmentreversal:
- Evaluating the assessment performed by
Group management to identify the existence
of indicators of impairment or indicators of
impairment reversal by comparing the underlying
data of the analysis with the source of the data
used;
- Comparing the evolution of yields per hectare;
and
- Overseeing the audit work of the components
auditors of material subsidiaries to identify any
indicators of impairment or any indicators of
impairment reversal, including that site visits of
theplantationshavebeencarriedout;
• Incaseofidenticationofanindicatorofimpairment
oranindicatorofimpairmentreversal,we:
- Assess the appropriateness of the methodology
applied by Group Management to determine
the recoverable value of the biological assets
and the accuracy of any impairment loss or any
impairmentreversalrecorded;
- Analyze the reasonableness of the cash ow
forecastsusedbyGroupManagementtodetermine
thevalueinuseofthebiologicalassets;
- Assess the reasonableness of the assumptions and
inputsusedbyGroupmanagement;and
- Reconcile the key inputs used in the model with
information audited by the components auditors
of material subsidiaries.
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Auditor’s report on the consolidated nancial statements
• Assesswhetherthe disclosures required by IAS36
«Impairment of Assets» for biological assets are
properly disclosed in the notes of the consolidated
nancialstatements.
Other information
The Board of Directors is responsible for the other
information. The other information comprises the
information included in the consolidated management
report and the corporate governance statement but
doesnotincludetheconsolidatednancialstatements
and our report of “réviseur d’entreprises agréé”
thereon.
Ouropinionontheconsolidatednancialstatements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated
nancialstatements,ourresponsibilityistoreadthe
other information and, in doing so, consider whether
the other information is materially inconsistent
with the consolidated nancial statements or our
knowledge obtained in the audit or otherwise appears
to be materially misstated. 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 this fact. We have nothing to report
in this regard.
Responsibilities of the Board of Directors and
of those charged with governance for the
consolidated nancial statements
The Board of Directors is responsible for the preparation
and fair presentation of the consolidated nancial
statements in accordance with IFRS as adopted by the
European Union, and for such internal control as the
Board of Directors determines is necessary to enable
thepreparationofconsolidatednancialstatements
that are free from material misstatement, whether
due to fraud or error.
The Board of Directors is also responsible for
presenting the consolidated nancial statements
in compliance with the requirements set out in the
Delegated Regulation 2019/815 on European Single
ElectronicFormat,asamended(“ESEFRegulation”).
In preparing the consolidated nancial statements,
the Board of Directors is responsible for assessing
the Group’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 Board of Directors either
intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for
overseeingtheCompany’s/Bank’s[Group’s]nancial
reporting process.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the consolidated
nancial statements
The objectives of our audit are to obtain reasonable
assurance about whether the consolidated nancial
statements as a whole are free from material
misstatement, whether due to fraud or error, and to
issue a reportof the “réviseur d’entreprises agréé”
that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that
an audit conducted in accordance with EU Regulation
N°537/2014, the Lawof23 July 2016andwith the
ISAs as adopted for Luxembourg by the CSSF 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
inuence the economic decisions of users taken on
thebasisoftheseconsolidatednancialstatements.
As part of an audit in accordance with EU Regulation
N°537/2014,theLawof23July2016andwithISAs
as adopted for Luxembourg by the CSSF, we exercise
professional judgment and maintain professional
skepticismthroughouttheaudit.Wealso:
• Identify and assess the risks of material misstatement
of the consolidated nancialstatements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufcient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
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Auditor’s report on the consolidated nancial statements
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by the
Board of Directors.
• Conclude on the appropriateness of Board of
Directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast signicant doubt on the
Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists,
we are required to draw attention in our report of
the “réviseur d’entreprises agréé” to the related
disclosuresintheconsolidatednancialstatements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our report of
the“réviseurd’entreprisesagréé”.However,future
events or conditions may cause the Group to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and
content of the consolidated nancial statements,
including the disclosures, and whether the
consolidated nancial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
• Assess whether the consolidated nancial
statements have been prepared, in all material
respects, in compliance with the requirements laid
down in the ESEF Regulation.
•Obtain sufcient appropriate audit evidence
regardingthenancialinformationoftheentities
and business activities within the Group to express
anopinionontheconsolidatednancialstatements.
We are responsible for the direction, supervision
and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
andtimingoftheauditandsignicantauditndings,
including any signicant deciencies in internal
control that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
communicate to them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters
that were of most signicance in the audit of the
consolidatednancialstatementsofthecurrentperiod
and are therefore the key audit matters. We describe
these matters in our report unless law or regulation
precludes public disclosure about the matter.
Report on other legal and regulatory
requirements
We have been appointed as “réviseur d’entreprises
agréé”bytheGeneralMeetingoftheShareholderson
26 May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments, is 2 year.
The consolidated management report is consistent
with the consolidated nancial statements and has
been prepared in accordance with applicable legal
requirements.
The accompanying corporate governance statement
on pages 19 to 24 is the responsibility of the Board
of Directors. The information required by article
68ter paragraph (1) letters c) and d) of the law of
19 December 2002 on the commercial and companies
register and on the accounting records and annual
accounts of undertakings, as amended, is consistent
with the consolidated nancial statements and has
been prepared in accordance with applicable legal
requirements.
We have checked the compliance of the consolidated
nancialstatementsoftheGroupasat31December
2021 with relevant statutory requirements set out
in the ESEF Regulation that are applicable to the
nancialstatements.FortheGroup,itrelatesto:
• Financial statements prepared in valid xHTML
format;
Socn
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ANNUAL REPORT 2021
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Auditor’s report on the consolidated nancial statements
• The XBRL markup of the consolidated nancial
statements using the core taxonomy and the
common rules on markups specied in the ESEF
Regulation.
Inouropinion,theconsolidatednancialstatements
of the Group as at 31December 2021, identiedas
2021 Socn Annual Report, have been prepared,
in all material respects, in compliance with the
requirements laid down in the ESEF Regulation.
Weconrmthattheauditopinionisconsistentwith
the additional report to the audit committee or
equivalent.
We conrm that the prohibited non-audit services
referred to in EU Regulation No 537/2014 were not
provided and that we remained independent of the
Group in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Yves Even
Luxembourg, 29
th
April 2022
Consolidated nancial statements
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|
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Consolidated nancial statements
1. Consolidated statement of nancial position
31/12/2021
31/12/2020
Restated (*)
ASSETS Note EUR EUR
Non-Current Assets
Goodwill 3 4,951,057 4,951,057
Right-of-use assets 4 10,505,511 10,967,008
Intangible assets 5 3,705,743 3,317,296
Property, plant and equipment 6 322,679,989 297,094,657
Biological assets 7 478,856,665 467,571,358
Investment properties 10 3,860,781 4,059,355
Financial assets at fair value through other comprehensive income 12 715,578 847,018
Long-term advances 1,858,758 1,843,046
Deferred tax assets 13 19,434,381 14,640,684
Other non-current assets 1,823,794 1,741,740
Current Assets
Inventories 16 114,505,857 102,336,152
Current biological assets 7 3,559,160 0
Trade receivables 17 42,082,791 34,081,813
Other receivables 18 10,238,140 14,342,461
Current tax assets 14 15,291,971 14,317,805
Cash and cash equivalents 19 143,315,435 58,911,453
TOTAL ASSETS 1,177,385,609 1,031,022,902
(*)Forfurtherdetails,seeNotes1.5,15and23.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
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Consolidated nancial statements
1. Consolidated statement of nancial position
31/12/2021
31/12/2020
Restated (*)
ASSETS Note EUR EUR
Non-Current Assets
Goodwill 3 4,951,057 4,951,057
Right-of-use assets 4 10,505,511 10,967,008
Intangible assets 5 3,705,743 3,317,296
Property, plant and equipment 6 322,679,989 297,094,657
Biological assets 7 478,856,665 467,571,358
Investment properties 10 3,860,781 4,059,355
Financial assets at fair value through other comprehensive income 12 715,578 847,018
Long-term advances 1,858,758 1,843,046
Deferred tax assets 13 19,434,381 14,640,684
Other non-current assets 1,823,794 1,741,740
848,392,257 807,033,219
Current Assets
Inventories 16 114,505,857 102,336,152
Current biological assets 7 3,559,160 0
Trade receivables 17 42,082,791 34,081,813
Other receivables 18 10,238,140 14,342,461
Current tax assets 14 15,291,971 14,317,805
Cash and cash equivalents 19 143,315,435 58,911,453
328,993,354 223,989,684
TOTAL ASSETS 1,177,385,609 1,031,022,902
(*)Forfurtherdetails,seeNotes1.5,15and23.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
31/12/2021
31/12/2020
Restated (*)
EQUITY AND LIABILITIES Note EUR EUR
Equity attributable to the owners of the Parent
Share capital 20 24,779,510 24,779,510
Share premium 20 501,847 501,847
Legal reserve 21 2,477,951 2,477,951
Consolidated reserves 380,183,421 376,520,345
Translation reserves -108,075,534 -124,110,578
Protfortheyear 80,389,524 4,705,333
Non-controlling interests
11
Total Equity 736,910,826 575,797,694
Non-Current Liabilities
Deferred tax liabilities 13 16,941,426 11,392,298
EmployeeBenetsObligations 22 51,008,374 50,928,284
Long term debt, net of current portion 23 125,924,853 55,059,230
Long term lease liabilities 4 10,977,779 11,081,167
Other payables 24 7,401,153 7,685,924
Current Liabilities
Short-term debt and current portion of long term debt 23 38,433,365 151,251,825
Short-term lease liabilities
4
Trade payables
24
Current tax liabilities 14 48,328,464 32,208,682
Provisions 381,506 743,489
Other payables 24 94,708,254 89,985,913
TOTAL EQUITY AND LIABILITIES 1,177,385,609 1,031,022,902
(*)Forfurtherdetails,seeNotes1.5,15and23.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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Consolidated nancial statements
2. Consolidated income statement
2021
2020
Restated (*)
Note EUR EUR
Revenue 33 837,644,569 605,326,130
Work performed by entity and capitalised 13,066,016 16,898,231
Changeininventoriesofnishedproductsandworkinprogress 830,651 2,101,456
Other operational income 8,640,023 11,285,961
Raw materials and consumables used
33
-288,189,236 -226,536,322
Other expenses
33
-97,953,325 -81,097,097
Staff costs 26 -153,346,286 -142,494,346
Depreciation and impairment expense 8 -64,496,770 -74,913,425
Other operating expenses
33,15
-20,861,972 -18,654,172
Operating prot
Othernancialincome 27 11,620,171 6,154,633
Gain on disposals 202,701 194,675
Loss on disposals -3,313,945 -1,117,435
Financial expenses 28 -22,920,697 -32,855,631
Prot before taxes 220,921,900 64,292,658
Income tax expense 15 -53,538,854 -36,572,117
Deferredtax(expense)/income 15 -840,121 1,591,000
Prot for the period
Prot attributable to non-controlling interests 86,153,402 24,606,210
Prot attributable to the owners of the Parent 80,389,523 4,705,332
Basic earnings per share undiluted
29 5.68 0.33
Number of Socn shares
Basic earnings per share 5.68 0.33
Diluted earnings per share 5.68 0.33
(*)Forfurtherdetails,seeNotes1.5,15and23.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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Consolidated nancial statements
2. Consolidated income statement
2021
2020
Restated (*)
Note EUR EUR
Revenue 33 837,644,569 605,326,130
Work performed by entity and capitalised 13,066,016 16,898,231
Changeininventoriesofnishedproductsandworkinprogress 830,651 2,101,456
Other operational income 8,640,023 11,285,961
Raw materials and consumables used
33
-288,189,236 -226,536,322
Other expenses
33
-97,953,325 -81,097,097
Staff costs 26 -153,346,286 -142,494,346
Depreciation and impairment expense 8 -64,496,770 -74,913,425
Other operating expenses
33,15
-20,861,972 -18,654,172
Operating prot
235,333,670 91,916,416
Othernancialincome 27 11,620,171 6,154,633
Gain on disposals 202,701 194,675
Loss on disposals -3,313,945 -1,117,435
Financial expenses 28 -22,920,697 -32,855,631
Prot before taxes 220,921,900 64,292,658
Income tax expense 15 -53,538,854 -36,572,117
Deferredtax(expense)/income 15 -840,121 1,591,000
Prot for the period
166,542,925 29,311,542
Prot attributable to non-controlling interests 86,153,402 24,606,210
Prot attributable to the owners of the Parent 80,389,523 4,705,332
Basic earnings per share undiluted
29 5.68 0.33
Number of Socn shares
14,159,720 14,159,720
Basic earnings per share 5.68 0.33
Diluted earnings per share 5.68 0.33
(*)Forfurtherdetails,seeNotes1.5,15and23.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
3. Consolidated statement of comprehensive income
2021 2020
Note EUR EUR
Prot of the period
Other comprehensive income
Actuarial losses and gains
22 1,874,113 -1,212,016
Deferred tax on actuarial losses and gains
-590,525 405,642
Fair value changes of securities measured at fair value through
other comprehensive income, before taxes
12 -36,378 -48,997
Deferred tax on fair value changes of securities measured at fair
value through other comprehensive income
Subtotal of items that cannot be reclassied to prot or loss
Gains(losses)onexchangedifferencesontranslationofsubsidiaries
Subtotal of items eligible for reclassication to prot or loss
Total Other Comprehensive Income
Comprehensive income
Comprehensive income attributable to non-controlling interests
Comprehensive income attributable to the owners of the Parent
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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4. Consolidated statement of cash ows
2021
2020
Restated (*)
Note EUR EUR
Operating activities
ProtattributabletotheownersoftheParent 80,389,524 4,705,329
Protattributabletonon-controllingshareholders 86,153,405 24,606,210
Fair value of agricultural production -6,709,158 7,798,959
Other adjustments having no impact on cash position -1,658,242 9,185,979
Depreciation and amortisation 8 64,496,769 74,913,425
Provisions and allowances -2,143,251 2,762,647
Net loss on disposals of assets 3,110,167 930,351
Income tax expense 15 54,378,976 34,981,116
Cash ows from operating activities 278,018,190 159,884,016
Interest paid 27,28 9,838,397 12,483,274
Income tax paid 15 -53,538,854 -36,572,117
Change in inventory -6,537,010 -13,954,328
Change in trade and other receivables 3,161,743 -1,850,729
Change in trade and other payables 16,494,145 16,613,632
Accruals and prepayments 4,178,499 4,263,236
Change in working capital requirement 17,297,377 5,071,811
Net cash ows from operating activities 251,615,110 140,866,984
Investing activities
Acquisition of additional interests in subsidiaries -1 -6,547,548
Acquisitions / disposals of intangible assets -1,857,690 235,567
Acquisitions of property, plant and equipment and biological assets 6,7 -73,604,183 -77,215,552
Disposals of property, plant and equipment 2,356,151 2,216,083
Acquisitions/disposalsofnancialxedassets 21,543 -56,818
Net cash ows from investing activities
-73,084,180 -81,368,268
Financing activities
Dividends paid to the owners of the Parent
30
-1,415,972 -7,079,860
Dividends paid to non-controlling shareholders
11
-32,103,320 -20,080,163
Proceeds from borrowings
23
Repayment of borrowings
23
-144,874,371 -27,766,069
Repayment of lease liabilities
23
-1,883,386 -2,382,735
Interest paid
27,28
-9,838,397 -12,483,275
Net cash ows from nancing activities -98,297,180 -46,381,369
Effectofexchangerateuctuations 2,896,632 -4,619,938
Net cash ow 83,130,382 8,497,409
Cash and cash equivalents at 1st January 19 54,155,296 45,657,888
Cash and cash equivalents at 31st December 19 137,285,678 54,155,296
Net increase / (decrease) in cash and cash equivalents 83,130,382 8,497,408
(*)Forfurtherdetails,seeNotes1.5,15and23.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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5. Consolidated statement of changes in equity
EUR
Share
capital
Share
premium
Legal
reserve
Translation
reserves
Conso-
lidated
reserves
Equity
attributable
to the
owners of
the Parent
Non-
controlling
interests
TOTAL
EQUITY
Balance at 1
st
January 2020
Prot/(loss)fortheperiod
Actuarial losses and gains
-254,132 -254,132 -552,242 -806,374
Change in fair value of securities at fair value
through other comprehensive income
-21,815 -21,815 -14,956 -36,771
Foreign currency translation adjustments
-31,249,125 0 -31,249,125 -27,467,149 -58,716,274
Other comprehensive income -31,249,125 4,429,385 -26,819,740 -3,428,137 -30,247,877
Dividends(Note30)
-7,079,860 -7,079,860 -16,433,522 -23,513,382
Interimdividends(Note30)
Other movements
-1,320,200 2,512,032 1,191,832 -7,739,814 -6,547,982
Transactions with shareholders
-1,320,200 -4,567,828 -5,888,028 -28,542,713 -34,430,741
Balance at 31
st
December 2020
-124,110,578
Balance at 1
st
January 2021
Prot/(loss)fortheperiod
Actuarial losses and gains
Change in fair value of securities at fair value
through other comprehensive income
-16,199 -16,199 -11,106 -27,305
Foreign currency translation adjustments
Transfer between reserves
Other comprehensive income
Dividends(Note30)
Interimdividends(Note30)
-1,415,972 -1,415,972 -3,431,937 -4,847,909
Other movements
-32,058 -32,058 56,153 24,095
Transactions with shareholders
Balance at 31
st
December 2021
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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6. Notes to the consolidated nancial statements
Note 1. Overview and accounting policies
1.1. Overview
Société Financière des Caoutchoucs, abbreviated
5
th
December 1959. Its corporate purpose qualies
it as a sopar since theAnnual General Meeting of
10
th
January2011.Theregisteredofceisestablished
at4,avenueGuillaume,L-1650inLuxembourg .
The main activity of the Company and its subsidiaries
(the “Group”) is the management of a portfolio of
interests mainly focused on the operation of tropical
palm oil and rubber plantations in Africa and Southeast
of Asia
The Company is listed on the Luxembourg Stock
ExchangeunderISINLU0027967834andisregistered
inthecommercialregisterundernumberB5937.
1.2. Statement of compliance
The consolidated nancial statements have been
prepared on a going concern basis and in accordance
with International Financial Reporting Standards
(IFRS) as adopted by the European Union and the
consolidated nancial statements are presented in
euros and rounded to the nearest whole number,
the euro being the functional currency of the parent
company Socn and of the Group’s presentation
currency.
On 29
th
April 2022, the Board of Directors approved
theconsolidatednancialstatements.
In conformity with the current legislation existing
in the Grand Duchy of Luxembourg, the nancial
statements will be approved by the shareholders
duringtheAnnualGeneralMeeting.
New standards and amendments applicable on
1
st
January 2022:
- Amendment to IFRS 3 Business Combinations:
reference to the Conceptual Framework: the
amendments updated the reference to the
Conceptual Framework for Financial Reporting,
added a reference to IAS 37 or IFRIC 21 when a
company identies the liabilities assumed in a
business combination, and stated that an acquirer
should not recognise contingent assets acquired in a
business combination.
-AmendmentIAS16Property,PlantandEquipment:
the amendments prohibit a company from deducting
from the cost of property, plant and equipment
amounts received from selling items produced while
the company is preparing the asset for its intended
use. Instead, a company should recognise such sales
proceedsandrelatedcostinprotorloss.
- Amendments to IAS 37 Provisions, Contingent
LiabilitiesandContingentAssets:OnerousContracts
—CostofFulllingaContract:theseamendments
specify which costs a company includes when
assessing whether a contract will be loss-making.
-AnnualImprovementstoIFRSStandards2018–2020:
theseamendments concernIFRS1, IFRS9, IFRS16
and IAS 41
• IFRS 1 (1
st
time adopter): allows a subsidiary
to measure translation differences using the
amounts reported by its parent, based on the
parent’s date of transition to IFRS.
• IFRS16:removalfromtheillustrativeexamples
of the illustration of the reimbursement of
leasehold improvements by the lessor.
• IFRS9:theamendmentclarieswhichfeesan
entityincludeswhenitappliesthe“10percent”
testin paragraphB3.3.6of IFRS9in assessing
whethertoderecogniseanancialliability.
• IAS41:theamendmentremovestherequirement
in IAS 41.22 for entities to exclude taxation
cashows whenmeasuringthe fairvalueof a
biological asset using a present value technique.
New standards and amendments applicable after
1
st
January 2022:
On 18
th
May2017,theIASBissuedIFRS17“Insurance
Contracts”, which establishes principles for the
recognition, measurement and presentation of
contracts. Under IFRS 17, insurance performance
should be measured at its current execution value
and provide a more consistent measurement and
presentation method for all insurance contracts. IFRS
Consolidated nancial statements
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17replacesIFRS4“Insurancecontracts”anditsinterpretations.It
is effective as of 1
st
January 2023 and early adoption is permitted
if IFRS 15 “Revenue from Contracts with Customers” and IFRS
9“FinancialInstruments” havebeen applied.On 9
th
December
2021,theIASBissuedamendmentstoIFRS17,aimedathelping
entities to avoid temporary accounting mismatches between
nancialassetsandinsurancecontractliabilities.TheGroupdoes
not expect that the adoption of this new standard will have a
materialimpactonitsconsolidatednancialstatements.
On 12
th
February 2021, the IASB issued amendments to IAS 1,
IFRS2PracticeStatement“MakingJudgmentsaboutMateriality”
and IAS 8. The amendments are intended to assist preparers in
determining the accounting policies to be presented in their
nancial statements, to further enhance the importance in
determining the accounting policies, and to distinguish changes in
accounting estimates from changes in accounting policies. They
areeffectivefornancialyearsbeginningonorafter1
st
January
2023 and are to be applied prospectively, with early adoption
permitted. The Group is currently assessing the impact of these
amendments.
The Group does not expect the adoption of these amendments to
haveamaterialimpactonitsconsolidatednancialstatements,
nor anticipate early adoption of new accounting standards,
amendments and interpretations.
New IFRS standards, amendments and interpretations not yet
endorsed by the European Union:
On 23
rd
January 2020, the IASB published amendments to IAS 1
“Presentation of nancial statements” on the classication of
liabilities as current and non-current in order to establish a more
generalapproachtotheclassicationofliabilitiesunderIAS1,
based on an analysis of contracts existing at the balance sheet
date.Theamendmentsincludeclaricationoftherequirements
for classifying liabilities that a company could settle by
converting them into equity. On 15
th
July 2020, the IASB deferred
the effective date of the amendments, that are effective for
nancialperiodsbeginningonorafter1
st
January 2023 and must
be applied retroactively with early adoption permitted. The
Group is currently assessing the impact of these amendments.
On 7
th
May 2021, the IASB published amendments to IAS 12
“Deferred Tax related to Assets and Liabilities arising from
a Single Transaction”. The amendments narrowed the scope
of the recognition exemption in paragraphs 15 and 24 of IAS
12 (recognition exemption) so that it no longer applies to
transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. They are effective for
nancialyearsbeginningonorafter1
st
January 2023 and are to
be applied retrospectively, with early adoption permitted. The
Group is currently assessing the impact of these amendments.
1.3. Presentation of consolidated nancial statements
The consolidated nancial statements are presented in euros
(EURor€).
They are prepared on the basis of historical cost with the
exceptionofthefollowingassets:
- Biological assets (current) (IAS 2, IAS 41), derivative
instruments and securities measured at fair value through
othercomprehensiveincomearerecognisedatfairvalue;
- Property, plant and equipment acquired as part of a business
combination(IFRS3)aremeasuredinitiallyattheirfairvalue
at the date of acquisition.
The accounting principles and rules are applied in a consistent
andpermanentwaywithintheGroup.Theconsolidatednancial
statements are prepared for the accounting year ending
31
st
December 2021 and are presented before the Annual General
Meetingof shareholdersapprovingthe allocationofthe parent
company’s income.
As of 1
st
January 2021, the Group adopted the following
amendments without any material impact on the Group’s
consolidated nancial statements:
o Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS
16 Interest Rate Benchmark Reform – Phase 2 of the
“IBOR”interestratebenchmarkreform.Theamendments
complement those issued in 2019 described above and
focus on the effects on the nancial statements when a
company replaces the old interest rate benchmark with
another interest rate benchmark as a result of the reform.
The changes in this nal phase relate to changes in
contractual cash ows: a company will not have to
derecognise or adjust the carrying amount of nancial
instrumentstoreectthechangesrequiredbythereform,
butinsteadwillupdatetheeffectiveinterestratetoreect
the change in the alternative interest rate benchmark.
o Amendment to IFRS 16 Leases: COVID-19-Related Rent
Concessions beyond 30
th
June 2021 (applicableforannual
periods beginning on or after 1
st
April2021):thisamendment
extends, by one year, the May 2020 amendment that
provides lessees with an exemption from assessing whether
aCOVID-19-relatedrentconcessionisaleasemodication.
o AmendmenttoIFRS 4“Insurance contract”: on25
th
June
2020, the IASB issued amendments to IFRS 4 that provide
for an extension of the temporary exemption from IFRS 9
“FinancialInstruments”until1
st
January 2023 to align with
theeffectivedateofIFRS17“InsuranceContracts”.
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1.4. Consolidation principles
The consolidated nancial statements include the nancial
statementsoftheparentcompanySocnaswellasthoseofthe
companiescontrolledbytheparent(“subsidiaries”),allofwhich
constitute the “Group “.
All companies included in the scope of consolidation as of
31
st
December 2021 close their accounts on 31
st
December.
Subsidiaries
In accordance with IFRS 10, an investor has control when three
conditionsarefullled:
1)itholdspowerovertheentity;
2) it is entitled to or is exposed to variable returns from its
involvement;
3) ithas the abilityto use itspower over theentity to affect
returns.
Currently, the Group holds the majority of the voting rights in
the entities.
Income and expenses from subsidiaries acquired or sold during
the year are included in the consolidated income statement,
respectively, from the date of acquisition to the date of disposal.
Protorlossandeachcomponentofothercomprehensiveincome
are attributed to the equity holders of the parent of the Group
and to the non-controlling interests, even if this results in the
non-controllinginterestshavingadecitbalance.
Where appropriate, restatements are made to the nancial
statements of the subsidiaries to align the accounting principles
used with those of other companies in the scope of consolidation.
All intra-group balances and transactions are eliminated upon
consolidation.
If the Group loses control over a subsidiary, it derecognises the
related assets (including goodwill), liabilities, non-controlling
interest and other components of equity, while any residual gain
orlossisrecognisedinprotorloss.Anyinvestmentretainedis
recognised at fair value.
The list of subsidiaries of the Group is presented in Note 2.
1.5. Changes in accounting policies, errors and changes in
estimates
A change in accounting policy is applied only if it meets the
requirements of a standard or interpretation or permits more
reliable and relevant information. Changes in accounting
policies are accounted for retrospectively, except in the case of
transitionalprovisionsspecictothestandardorinterpretation.
An error, when discovered, is also adjusted retrospectively.
During the year, the company performed a prior year restatement
onthelong-termdebtaccount(Note23)andincometax(Note
15).Thoserestatements donot haveamaterial impactonthe
nancialstatements.
Uncertainties inherent in the activity require the use of estimates
when preparing nancial statements. The estimates are based
on judgments intended to give a reasonable assessment of the
latest reliable information available. An estimate is revised to
reectchangesincircumstances,newinformationavailableand
the effects of experience.
1.6. Business combinations
IFRS 3 “Business Combinations” provides the accounting basis
for recognising business combinations and changes in interests in
subsidiaries after obtaining control.
This standard makes it possible, at each grouping, to opt for the
recognitionofapositivegoodwill(correspondingtomajorityand
minorityinterests)or apartial positivegoodwill (basedon the
percentageofvestedinterests).
The accounting treatment of this difference is described in points
1.7and1.8.
Changes in interest in a subsidiary that do not result in loss of
control are accounted for as equity transactions.
1.7. Goodwill
Goodwill is the difference on the date of acquisition between
the fair value of the consideration given in exchange for taking
control, the value of minority interests, the fair value of previous
equityinvestmentsandthefairvalueofidentiableassetsand
liabilities and contingent liabilities of the acquiree.
When disposing of a subsidiary or an associate, the residual
amount of goodwill attributable to the subsidiary is included in
the calculation of the result of disposal.
Consolidated nancial statements
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1.8. Negative goodwill
Negative goodwill represents the excess of the
Group’s interest in the fair value of identiable
assets and liabilities and the contingent liabilities of
a subsidiary or associate on the cost of acquisition on
the acquisition date.
To the extent that negative goodwill remains
after considering and reassessing the fair value of
identiable assets and liabilities and contingent
liabilities of a subsidiary or associate, it is recognised
directly as an income in the income statement.
1.9. Foreign currency conversion
In the nancial statements of Socn and of each
subsidiary, transactions in foreign currency are recorded,
upon initial recognition, in the functional currency of
the company concerned by applying the exchange rate
in force on the transaction date. At closing, monetary
assets and liabilities denominated in foreign currencies
are converted on the last day of the year. Gains and
losses arising from the realisation or translation of
monetary items denominated in foreign currencies are
recorded in the income statement for the year.
To hedge its exposure to certain foreign exchange
risks, the Group uses forward exchange contracts.
Thesenancialinstrumentsdonotqualifyforhedge
accounting.They are classied in otherinstruments
(seeNote1.19).
On consolidation, the assets and liabilities of companies
whose accounts are held in a currency other than the
euro are translated into euros at the exchange rate
prevailing on the closing date. Income and expenses
are converted into euros at the average exchange rate
fortheyear.Anyexchangedifferencesareclassiedas
equityunder “Translationdifferences”. Intheevent
of a disposal, the translation differences relating to
the company concerned are recognised in the income
statement for the year in which the sale took place.
Goodwill and fair value adjustments arising on the
acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at
the closing rate.
The following exchange rates have been used for the
conversionoftheconsolidatedannualaccounts:
Closing rate Average Rate
1 euro equals to: 2021 2020 2021 2020
Euro
1.000 1.000 1.000 1.000
CFA franc
655.957 655.957 655.957 655.957
Ghanaian cedi
6.8025 7.0683 6.8705 6.4179
Indonesian rupiah
16,161 17,308 16,938 16,725
Cambodian riel
4,614 4,964 4,804 4,672
Nigerian naira
467.50 465.87 471.97 408.50
Dobra of São Tomé
24.50 24.50 24.50 24.50
Congolese franc
2,265 2,420 2,351 2,117
American dollar
1.1326 1.2271 1.1809 1.1451
While Cambodian subsidiaries’ revenues from goods
andservicesarebilledinCambodianriel(KHR),price
setting and collection are made in US dollar (USD).
Signicant operating expenses, personnel costs and
otherincome(expenses)arelikewisepurchasedand
paid in USD. Based on the economic substance of the
underlying circumstances relevant to the Cambodian
subsidiaries, USD is the currency in which these
companies substantially both generate and expend
cash in the country in which they operate.
Considering these factors, Cambodian subsidiaries have
changed their functional currency in 2021 from KHR to
USD, this change in functional currency being effective
on 1
st
January. In line with IAS 21, this change was
accounted for prospectively. As per IAS 21, this change
shouldhaveoccurredassoonassignicanttransactions
wereperformedinUSD.Managementassessedthatthe
correction of prior year balances would not have any
materialimpactonthenancialstatements.
As of 31
st
December 2021, the Group no longer has
subsidiaries using Cambodian riel.
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1.10. Intangible assets
Intangible assets are stated at their acquisition cost
less accumulated depreciation and any impairment
losses.
Amortisation is applied on a straight-line basis
based on an estimate of the useful life of the asset
in question. Intangible assets are not subject to
revaluation. When the recoverable value of an asset
is lower than its book value, the latter is reduced to
reectthislossinvalue.
Theestimatedusefullivesareasfollows:
Patents 3 to 5 years old
Other intangible assets 3 to 5 years old
Software 3 to 5 years old
Concessions Length of the concessions
Amortisation starts from the date of bringing the asset
into use.
Gains or losses arising on derecognition of assets
(difference between the disposal proceeds and the
carrying amount of the asset) are included in the
income statement when assets are derecognised.
1.11. Property, plant and equipment
Tangiblexedassetsarerecordedattheiracquisition
cost less accumulated amortisation and any
impairment losses.
Property, plant and equipment in progress is carried at
costlessanyidentiedimpairment.
Depreciation is applied on a straight-line basis based
onanestimateoftheusefullifeforeachsignicant
component of the asset in question. When the
recoverable value of an asset is lower than its book
value,thelatterisreducedtoreectthislossinvalue.
Theestimatedusefullivesareasfollows:
Buildings 20 to 50 years
Technical installations 3 to 20 years
Furniture, vehicles and others 3 to 20 years
Depreciation starts from the date that the assets are
brought into use.
Land is not subject to depreciation.
Gains or losses arising on derecognition of assets
(difference between the disposal proceeds and the
carrying amount of the asset) are included in the
income statement when assets are derecognised.
1.12. Investment properties
Investment properties are real estate (land and
buildingsorpartofbuildings)heldforrentalorcapital
appreciation.
Investment properties are recorded at cost less
accumulated depreciation and any impairment
charges.
Depreciation is determined on a straight-line basis
over the useful life of the asset. The depreciation
period for investment properties is set at 50 years.
Gains or losses arising on derecognition of assets
(difference between the disposal proceeds and the
carrying amount of the asset) are included in the
income statement when assets are derecognised.
1.13. Bearer biological assets
The Group has biological assets in Africa and Asia.
These biological assets, mainly consisting of palm oil
and rubber plantations, are valued according to the
principlesdenedinIAS16“Tangiblexedassets”.
Biological assets at the time of harvest, in particular
for palm bunches, palm oil and rubber, are evaluated
according to the principles dened by IAS 41
“Agriculture”.
Bearer biological assets
Producer biological assets are recorded at acquisition
cost, less accumulated amortisation and any
impairment losses.
Depreciation is applied according to the straight-line
method based on an estimate of the useful life. When
the recoverable amount of an asset is less than its
carrying amount, the carrying amount is reduced to
reectthatimpairment.
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Theestimatedusefullivesareasfollows:
Bearer plants – Palm 20to26years
Bearer plants - Rubber 20 to 33 years
Depreciation starting date is the date of transfer of
biologicalassetsinproduction(assetbeingmature).
This transfer takes place in the third year after palm
oil tree planting in Asia, in the fourth year after palm
oil tree planting in Africa and in the seventh year after
rubber tree planting. For each entity, the operating
period can be adapted according to the particular
circumstances.
Agricultural production
Agricultural production at harvest is valued at fair
value less estimated costs necessary to complete the
sale.
There are no observable data for agricultural
production (palm harvest, latex). The World Bank
publishes price forecasts for dry rubber (nished
product).TheseforecastsarebasedontheRSS3grade
(smoked sheet) that is not produced by the Group.
Lastly, and even more so, there are no observable
prospective data relating to the Group’s agricultural
production. The price of a standard product in a
global market is not sufciently representative of
the economic reality in which the various entities of
the Group intervene. This price cannot be used as a
reference for valuation.
As a result, each entity determines the fair value of
agricultural production based on actual market prices
obtained over the past year.
The Group considers produce that grows on mature
plantations (oil in the palm fruits and produce of
rubber) as biological assets, in accordance with IAS
41 principles. This produce is measured at fair value
until the point of harvest. Any resultant gains or losses
arising from changes in fair value are recognised in
the income statement.
1.14. Leases
The Group assesses at contract inception whether
a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an
identiedassetforaperiodoftimeinexchangefor
consideration.
The Group applies a single recognition and
measurement approach for all leases, except for short-
term leases and leases of low-value assets (mainly
IT equipment), for which payments associated are
recognised as an expense in the income statement.
The Group recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.
The Group leases ofces and agricultural land for
terms ranging from 1 to 99 years, as well as vehicles
and equipment for terms ranging from 1 month to
5 years.
The Group’s lease contracts are standard contracts
that do not include additional non-leasing components,
except for some vehicle lease contracts that include
a maintenance service. The Group has used the
practical expedient that allows not separating the
lease component from the non-lease component for
these contracts.
Assets and liabilities related to lease contracts are
initially measured at the present valueofthe xed
paymentsincludingin-substancexed paymentsless
any lease incentives receivable. Lease payments to
be made under reasonably certain extension options
are also included in the measurement of the liability.
To this purpose, management considers all facts
and circumstances that may create an incentive to
exercise a renewal option or not to exercise an early
termination option. The lease liability is remeasured
if there is a change in the lease term, in the lease
payment or in the assessment of an option to purchase
the underlying asset.
As the implicit interest rate is not known for all the
Group’s contracts, the incremental borrowing rate was
used to discount the lease payments. The incremental
borrowing rate is the rate that the lessee would have
to pay to borrow, for a similar term and with a similar
guarantee, the funds necessary to acquire an asset of
similar value to the asset under the right-of-use in a
similar economic environment.
In determining the incremental borrowing rate, the
Group:
- where possible, uses the most recent nancing
received by the lessee as a starting point, adjusted
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toreectthechange innancingconditions since
thenancingwasreceived;
- uses a build-up approach starting with a risk-free
rate adjusted for credit risk for leases for entities
withnorecentexternalnancing;
- makes lease specic adjustments (such as term,
country,currencyandcollateral).
The discount rates used by the Group range between
2.4%and19.9%.
Lease payments are allocated between the repayment
of the principal amount of the lease liabilities and
interest expense. Interest expense is recognised in
the income statement for the period over the term
of the lease. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the useful life
and the lease term.
The Group applies IAS 36 to determine whether a
right-of-use asset is impaired and recognises any
impairment lossas described inNote 9: Impairment
of assets.
1.15. Impairment of assets
Goodwill is not amortised but is tested for impairment
at least once a year and whenever there is an
indication of impairment.
In addition, at each reporting date, the Group reviews
the carrying amounts of its intangible and tangible
assets, including its organic producing assets, in order
to assess whether there is any indication that its assets
may have lost value. If there is such an indication,
the recoverable amount of the asset is estimated to
determine, if applicable, the amount of the loss or
impairment. The recoverable amount is the higher of
the fair value less costs to sell the asset and the value
in use.
The fair value of property, plant and equipment and
intangible assets is the present value of estimated
futurecashowsexpectedfromtheuseofanasset
or cash-generating unit. When it is not possible to
estimate the recoverable amount of an isolated asset,
the Group determines the recoverable amount of the
cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or a cash-
generatingunit)isestimatedtobelessthanitscarrying
amount, the carrying amount of the asset (cash-
generatingunit)isreducedtoitsrecoverableamount.
Impairment losses are immediately recognised as
expenses in the income statement.
When an impairment loss recognised in a prior period
no longer exists or needs to be written down, the
carryingamountoftheasset(cash-generatingunit)is
increased to the extent of the revised estimate of its
recoverable amount. However, this increased carrying
amount may not exceed the carrying amount that
would have been determined if no impairment loss
had been recognised for the asset (cash-generating
unit)inprioryears.Thereversalofanimpairmentloss
is recognised immediately in income in the income
statement.
An impairment loss recorded on goodwill cannot be
subsequently reversed.
1.16. Inventories
Inventories are recorded at the lower of cost and net
realisable value. Cost includes direct material costs
and, if applicable, direct labour costs and directly
attributable overhead costs.
Wherespecicidenticationisnotpossible,thecostis
determined on the basis of the weighted average cost
method. Net realisable value is the estimated selling
price in the ordinary course of business less estimated
costs of completion and the estimated costs necessary
tocompletethesale(primarilysellingexpenses).
Impairment or loss on inventory to net realisable value
is recognised as an expense in the period in which the
impairment or loss occurred.
As explained in Note 1.13. Bearer biological assets,
agricultural production is measured at fair value less
estimated costs necessary to make the sale.
1.17. Trade receivables
Trade receivables are valued at their nominal value and
donotbearinterest.The Groupappliesa simplied
approach and records a provision for expected losses
over the life of the receivables. This provision for
losses is an amount that the Group considers a reliable
estimate of the inability of its customers to make the
requiredpayments(RefertoNote34).
Consolidated nancial statements
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1.18. Cash and cash equivalents
This item includes cash, demand deposits, short-term
deposits of less than 3 months, as well as investments
easily convertible into a known amount of cash,
having a maturity of three months or less, and which
are subject to a negligible risk of change in value.
1.19. Financial instruments
Financial assets and liabilities are recognised in the
consolidatedstatementofnancialpositionwhenthe
Group becomes a party to the contractual provisions
of the instrument.
Financial instruments derivatives
Financial instruments derivatives are measured at fair
value at each reporting date.
Theaccountingtreatmentdependsonthequalication
oftheinstrumentconcerned:
- Hedging instruments:
The Group refers to certain hedging instruments,
including foreign exchange risk and interest rate risk
derivatives, as cash ow hedges. Foreign currency
hedges related to rm commitments are accounted
forascashowhedges.
At the inception of the hedging relationship, the entity
prepares documentation describing the relationship
between the hedging instrument and the hedged
item as well as its risk management objectives and
strategy for performing various hedging transactions.
In addition, when the hedge is created and regularly
thereafter, the Group indicates whether the hedging
instrument is highly effective in offsetting changes
in the fair value or cash ows of the hedged item
attributable to the hedged risk.
The effective portion of changes in the fair value of
derivatives that are designated ascashow hedges
and qualify for such designation is recognised in
other comprehensive income and accumulated in the
hedgingreserve,cashow.Thegainorlossrelatedto
the ineffective portion is recognised immediately in
protorloss,inothergainsandlosses.
Amounts previously recognised in other comprehensive
income and accumulated in equity are reclassied
to net income in the periods in which the hedged
item affects net income, to the same account as
the recognised hedged item. However, if a hedged
forecast transaction results in the recognition of a
non-nancialassetorliability,thegainsandlossesthat
were previously recognised in other comprehensive
income and accumulated in equity are taken out of
equity to be recognised in the initial measurement of
thecostofthenon-nancialassetorliability.
For the periods under review, the hedging instruments
were used by the Group up to January 2019.
- Other instruments:
Changes in the fair value of derivative nancial
instruments that do not qualify for hedge accounting
are recognised in the income statement when they
occur.
For the periods under review, forward exchange
contracts were used by the Group.
Loans
Loans bearing interest are recorded for the amounts
given, net of direct costs of issue. Financial income is
added to the carrying amount of the instrument to the
extent that it is not received in the period in which
it occurs. Interest is calculated using the effective
interest rate method.
The Group’s business model for nancial assets
managementreferstothewayitmanagesitsnancial
assetsinorder togenerate cashows.The business
modeldetermineswhethercashowswillresultfrom
thecollectionofcontractualcashows,thedisposal
ofnancialassetsorboth.Financialassetsclassied
and measured at amortised cost are held in a business
model withthe objectiveof holding nancialassets
tocollectcontractualcashows.Long-termadvances
and other receivables are held for the sole purpose of
collecting principal and interest. As such, they comply
withthe“SolelyPaymentsofPrincipalandInterest”
(SPPI) model. They are accounted for using the
amortisedcostmethod.TheGroupappliesasimplied
approach in calculating Expected Credit Losses for
loans, based on historical credit loss experience.
Interest-bearing borrowings and overdrafts are
recorded for amounts received, net of direct issue
costs. Financial expenses are recognised in income
statement and are added to the carrying amount of
the instrument to the extent that they are unpaid in
the year in which they occur.
Consolidated nancial statements
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The carrying amount is a reasonable approximation of
fairvalueinthecaseofnancialinstrumentssuchas
borrowings and debts with short-term maturity.
The fair value measurement of borrowings and debts
with nancial institutions, other than in the short
term,dependsbothonthespecicsoftheloansand
on current market conditions. The fair value was
calculated by discounting the expected future cash
owsatthere-estimatedinterestratesprevailingat
the balance sheet date over the remaining term of
repaymentoftheloans(RefertoNote25).
The Group relied on the evolution of the interest
rate of the European Central Bank adjusted for the
specicriskinherentineachnancialinstrument,as
a reasonable benchmark for estimating the fair value
of such borrowings.
Equity instruments
Equity instruments are recognised for the amounts
received, net of direct costs incurred by the issue.
Securities available for sale
This item includes shares held by the Group in
companies in which it does not exercise control or
signicantinuenceorinunconsolidatedcompanies.
Upon initial recognition, these assets are recognised
at fair value, which is generally at their acquisition
cost.
Securities that are available for sale are recognised as
nancialassetsat fairvalue throughcomprehensive
income, as these investments are held as strategic
investments in long term that should not be sold in
the short term. This recognition at fair value through
comprehensive income is irrevocable.
For equities of listed companies, the fair value is
the market value at the closing date (Level 1). For
unlisted securities, the fair value is determined on the
basisofrevaluednetassets(Level3).
At each reporting date, the Group reviews the carrying
amounts of its securities in order to assess whether
there is any indication that they may have lost
value.Noprotorlossrelated totheseinstruments
can be reclassied to income even at the time of
derecognition.
The impairment criteria applied by the Group, for
unlistedsecurities,area40%depreciationcompared
to the acquisition cost and a loss recognised over a
period of more than one year. For listed securities,
adenitiveimpairmentlossisrecognisedinprotor
lossiftheclosingmarketpriceismorethan30%lower
than its acquisition cost over a period of more than
one year.
Other nancial assets and liabilities
Othernancial assetsandliabilities arerecordedat
theiracquisitioncost.Thefairvalueofothernancial
assets and liabilities is estimated to be close to the
carrying amount.
The receivables are valued at their nominal value
(at cost) less any write-downs covering amounts
considered as non-recoverable if the Group deems it
necessary. Impairment of assets is recognised in the
income statement under “Other operating income/
expenses”. The Group has established a provision
matrix, based on its historical credit loss experience
(average default over several years), adjusted for
prospective factors specic to the debtors and the
economic environment. The carrying amount of
the asset is reduced through the use of a provision
account and the amount of the loss is recognised in
the consolidated income statement. The Board of
Directors of each subsidiary evaluates the receivables
individually.Valueadjustmentsaredeterminedtaking
into account the local economic reality of each
country. They are reviewed at the reception of new
events and at least annually.
1.20. Provisions
Provisions are recognised when the Group has a
present obligation (legal or constructive) resulting
from a past event which will probably lead to an
outowofeconomicbenetsthatcanbereasonably
estimated.
Restructuring provisions are recognised when
the Group has a formal and detailed plan for the
restructuring thathasbeen notied to theaffected
parties.
Consolidated nancial statements
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1.21. Pension obligations
Dened contribution plans
These plans designate the post-employment benet
plansunderwhichtheGrouppaysdenedcontributions
to external insurance companies for certain categories
of employees. Payments made under these pension
plans are recognised in the income statement in the
year in which they are due.
As these plans do not generate future commitments
for the Group, they do not give rise to provisions.
Dened benet plans
These plans refertopost-employment benet plans
that provide additional income to certain categories
of employees for services rendered during the year
and prior years.
This guarantee of additional resources is a future
expenditure for the Group for which a commitment
is calculated by independent actuaries at the end of
eachnancialyear.
The actuarial assumptions used to determine the
liabilities vary according to the economic conditions
prevailing in the country in which the plan is located.
The discount rates applicable to discount post-
employmentbenetobligationsshouldbedetermined
by reference to the market yields on high quality
corporate bonds that are appropriate to the estimated
timingofbenetpaymentsatthebalancesheetdate.
The Group decided to calculate discount rates using an
economic approach for high-quality corporate bonds
correspondingtothetermsoftheemployeebenets
in the countries concerned. In the countries where
there is no active market for such obligation, the
Groupreferstothemarketyields(attheendofthe
reportingperiod)ofgovernmentbonds.Thecurrency
and duration of these corporate or government bonds
must correspond to the currency and estimated
durationofthepost-employmentbenetobligations.
The cost of corresponding commitments is determined
using the projected unit credit method, with a
discounted value calculation at the balance sheet date
in accordance with the principles of IAS 19 “Employee
Benets”.
Allchangesintheamountofdenedbenetpension
obligations are recognised as they occur.
Remeasurements of dened benet pension
obligations, including actuarial gains and losses, should
be recognised immediately in “Other comprehensive
income”.
The costs of services rendered during the period, past
servicecosts(planamendment)andnetinterestare
recognised as an expense immediately.
Theamountrecognisedinthestatementofnancial
position is the present value of the pension obligations
of the dened benet plans adjusted for actuarial
gains and losses and less the fair value of plan assets.
1.22. Revenue recognition
The Group’s revenues derive from the performance
obligation of transferring control of products under
arrangements. According to these arrangements,
the transfer of control and the fullment of the
performance obligation occur at the same time.
The point of control of the asset by the customer
depends on when the goods are made available to
the carrier or when the buyer takes possession of the
goods, depending on the delivery conditions. With
regards to the Group’s activities, the recognition
criteriaaregenerallymet:
(a)forexportsales,wherethetimeofthetransferof
deedbasedontheincoterms;
(b) for local sales, depending on the delivery
conditions, either when the goods leave the premises
or when the customer takes possession of the goods.
Thisis themoment whenthe Grouphas fullledits
performance obligations.
Revenues are valued at the transaction price of the
consideration received or receivable, which the
Company expects to be entitled to.
The selling price is determined at the market price
and in a few cases the selling price is contractually
determined on a provisional basis, based on a reliable
estimate of the selling price. In the latter case, price
adjustments can then take place depending on the
movementsbetweenthereferencepriceandthenal
price, as recognised.
The Group considers being the principal in its revenue
arrangements, because it controls the goods sold
before transferring them to the customers.
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Consolidated nancial statements
As at 31
st
December 2021, revenue from the major
customer within the Group accounted for approximately
EUR 65.3 million (2020: EUR 45.4 million) of total
Group revenue.
1.23. Taxes
Current tax is the amount of tax payable or recoverable
ontheprotorlossofanancialyear.
Temporary differences between the book values of
assets and liabilities and their tax bases give rise to
the recognition of a deferred tax using the tax rates
whose application is provided for when reversing the
temporary differences, as adopted on the closing
date.
Deferred taxes are recognised for all temporary
differences unless the deferred tax is generated by
goodwill or by the initial recognition of an asset or
a liability that is not acquired through a business
combinationanddoesnotaffecttheaccountingprot
orthetaxableprotonthetransactiondate.
A deferred tax liability is recognised for all taxable
temporary differences related to investments in
subsidiaries and associates, unless the date on which
the temporary difference will be reversed can be
checked and it is likely that it will not reverse in the
foreseeable future.
A deferred tax asset is recognised to carry forward
unused tax losses and tax credits to the extent that it
isprobablethatfuturetaxableprotswillbeavailable
on which these unused tax losses and tax credits can
be charged.
Deferred tax is recognised in the income statement
unless it relates to items that have been directly
recognised, either in equity or in other comprehensive
income.
1.24. Segment information
IFRS 8 “Operating Segments” requires operating
segments to be identied based on the internal
reporting analysed by the entity’s chief operating
decision-maker to assess performance and make
resource decisions for the segments.
Theidenticationoftheseoperationalsectorsfollows
from the information analysed by the management
which is based on the geographic distribution of
political and economic risks and on the analysis of
individual social accounts at historical cost.
1.25. Use of estimates
For the preparation of consolidated nancial
statements in accordance with IFRS, Group
management has had to make assumptions based on
its best estimates that affect the carrying amount
of assets and liabilities, information on assets and
liabilities, contingent liabilities and the carrying
amount of income and expenses recorded during
the period. Depending on the evolution of these
assumptions or different economic conditions,
the amounts that will appear in the Group’s future
consolidated nancial statements may differ from
currentestimates.Signicantaccountingpolicies,for
which the Group has made estimates, mainly concern
the application of IAS 19 (Note 22), IAS 41 / IAS 2
(Notes7and16),IAS16(Note6),IAS36(Notes8and
9),IFRS9(Note25)andIFRS16(Note4).
In the absence of observable data within the scope of
IFRS 13, the Group makes use of a model developed to
assess the fair value of agricultural production based
on local production costs and conditions and local
sales(RefertoNote1.13).
This method is inherently more volatile than
assessment at historical cost.
1.26. Impact of the COVID-19 pandemic
During 2021, though the impact of the COVID-19
pandemic on the activities of the company and its
subsidiaries was limited, the management has adapted
to the new constraints and is permanently monitoring
the risks related to this health crisis. The spread of
the virus is still active and unpredictable, which brings
uncertainty to economic development on one side and
to the course of business affairs on the other side.
Consolidated nancial statements
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Note 2. Subsidiaries and associates
% Group
Interest
% Group
Control
Consolidation
Method (*)
% Group
Interest
% Group
Control
Consolidation
Method (*)
2021 2021 2021 2020 2020 2020
Rubber and palm
SOGB S.A. 41.09 73.16 FI 41.09 73.16 FI
PLANTATIONSSOCFINAFGHANA“PSG”LTD 64.51 100.00 FI 64.51 100.00 FI
OKOMUOILPALMCOMPANYPLC 42.08 65.23 FI 42.08 65.23 FI
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDUCAMEROUN“SAFACAM”S.A.
44.55 69.05 FI 44.55 69.05 FI
SOCIETECAMEROUNAISEDEPALMERAIES“SOCAPALM”S.A. 43.52 67.46 FI 43.52 67.46 FI
Rubber
LIBERIANAGRICULTURALCOMPANY“LAC” 64.51 100.00 FI 64.51 100.00 FI
SALALARUBBERCORPORATION“SRC” 64.51 100.00 FI 64.51 100.00 FI
SUDCOMOËCAOUTCHOUC“SCC” 39.32 70.01 FI 39.32 70.01 FI
Palm
SOCFINAGRICULTURALCOMPANY“SAC”LTD 60.00 93.00 FI 60.00 93.00 FI
SOCIETEDESPALMERAIESDELAFERMESUISSE“SPFS” 43.52 100.00 FI 43.52 100.00 FI
AGRIPALMALDA 56.77 88.00 FI 56.77 88.00 FI
BRABANTA S.A. 64.58 100.00 FI 64.58 100.00 FI
Other activities
BEREBY-FINANCES“BEFIN”S.A. 56.16 87.06 FI 56.16 87.06 FI
CAMSEEDSS.A. 43.62 100.00 FI 43.60 100.00 FI
SOGESCOLCAMEROUN“SOGESCOLCAM”S.A.R.L.
61.30 100.00 FI 61.30 100.00 FI
ASIA
Rubber and palm
PTSOCFININDONESIA“SOCFINDO”
52.28 90.00 FI 52.28 90.00 FI
Rubber
SETHIKULA CO LTD 58.09 100.00 FI 58.09 100.00 FI
SOCFIN-KCD CO LTD 58.09 100.00 FI 58.09 100.00 FI
VARANASICOLTD 58.09 100.00 FI 58.09 100.00 FI
COVIPHAMACOLTD
58.09 100.00 FI 58.09 100.00 FI
EUROPE
Other activities
CENTRAGES S.A. 61.30 100.00 FI 61.30 100.00 FI
IMMOBILIEREDELAPEPINIERES.A. 61.30 100.00 FI 61.30 100.00 FI
INDUSERVICESS.A. 74.68 100.00 FI 74.68 100.00 FI
INDUSERVICESFRS.A. 61.30 100.00 FI 61.30 100.00 FI
MANAGEMENTASSOCIATESS.A. 62.91 90.00 FI 62.91 90.00 FI
PLANTATIONNORD-SUMATRALTD“PNSLtd”S.A. 58.09 100.00 FI 58.09 100.00 FI
SOCIETEANONYMEFORESTIEREAGRICOLE“SAFA” 64.51 100.00 FI 64.51 100.00 FI
SOCFIN RESEARCH S.A. 0.00 0.00 NC 61.30 100.00 FI
SOCFIN GREEN ENERGY S.A. 0.00 0.00 NC 61.30 100.00 FI
SOCFINAF S.A. 64.51 64.51 FI 64.51 64.51 FI
SOCFINASIA S.A. 58.09 58.09 FI 58.09 58.09 FI
SOCFINCO S.A. 61.30 100.00 FI 61.30 100.00 FI
SOCFINCO FR S.A. 61.30 100.00 FI 61.30 100.00 FI
SOCFINDE S.A. 59.33 99.92 FI 59.33 99.92 FI
SODIMEXS.A. 61.30 100.00 FI 61.30 100.00 FI
SODIMEXFRS.A. 61.30 100.00 FI 61.30 100.00 FI
SOGESCOL FR S.A. 61.30 100.00 FI 61.30 100.00 FI
STPINVESTS.A. 64.51 100.00 FI 64.51 100.00 FI
TERRASIA S.A. 68.15 100.00 FI 68.15 100.00 FI
(*) ConsolidationMethod:FI:Fullyintegrated,NC:NotConsolidated
Otherentitiesnotconsolidatedduetotheirlowmateriality:SoccomandSoggai.
Consolidated nancial statements
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List of subsidiaries and associates
* AGRIPALMA LDA is a company located on the
island of São Tomé and Principe specialised in the
production of palm oil.
* BEREBY-FINANCES “BEFIN” S.A. is a holding
company under Ivorian law owning the Ivorian
companies SOGB S.A. and SCC.
* BRABANTAS.A.isaCongolesecompanyspecialised
in the production of palm oil.
* CAMSEEDSS.A.is acompany underCameroonian
law specialised in research, development and
productionofseeds(palm).
* CENTRAGES S.A. is a company under Belgian law
providing administrative and accounting services and
whichownsthreeoorsofofcespaceinBrussels.
* COVIPHAMACOLTDisacompanyunderCambodian
law involved in rubber.
* IMMOBILIERE DE LA PEPINIERES.A. is a company
underBelgianlawwiththreeoorsofofcespace
in Brussels.
* INDUSERVICESS.A.isacompanyunderLuxembourg
law whose purpose is to provide all administrative
services to all companies and organisations,
including all services relating to documentation,
bookkeeping and register services, as well as all
representation, study and consultation activities
and assistance.
* INDUSERVICES FR S.A. is a company under Swiss
law whose purpose is to provide all administrative
services to all companies and organisations,
including all services relating to documentation,
bookkeeping and register services, as well as all
representation, study and consultation activities.
and assistance. In addition, it provides all Group
companies with access to the common IT platform.
* LIBERIAN AGRICULTURAL COMPANY “LAC” is a
company under Liberian law specialising in the
production of rubber.
* MANAGEMENTASSOCIATESS.A.isacompanyunder
Luxembourg law active in the transport sector.
* OKOMUOILPALMCOMPANYPLCisacompanyunder
Nigerian law specialised in the production of palm
and rubber products.
* PLANTATIONNORD-SUMATRALTD“PNSLtd”S.A.is
a holding company under Luxembourg law which
holdsstakesinPTSocndoandCoviphamaCoLTD.
* PLANTATIONS SOCFINAF GHANA “PSG” LTD is a
Ghanaian company specialised in the production
of palm and rubber products.
* PT SOCFIN INDONESIA “SOCFINDO” is a company
under Indonesian law active in the production of
palm oil and rubber.
* SOCIETEAFRICAINE FORESTIEREETAGRICOLE DU
CAMEROUN “SAFACAM S.A.” is a company under
Cameroon law active in the production of palm oil
and the cultivation of rubber trees.
* SALALARUBBERCORPORATION“SRC”is a company
under Cameroon law active in the production of
palm oil and the cultivation of rubber trees.
* SETHIKULACOLTDisacompanyunderCambodian
law holding concessions of agricultural land.
* SOCIETE CAMEROUNAISE DE PALMERAIES
“SOCAPALM S.A.” is active in Cameroon in the
production of palm oil and rubber cultivation.
* SOCFIN AGRICULTURAL COMPANY “SAC” LTD is a
company located in Sierra Leone specialised in the
production of palm oil.
* SOCFIN CONSULTANT SERVICES “SOCFINCO” S.A.
is a company established in Belgium providing
technical assistance, agronomic and nancial
services.
* SOCFIN-KCDCOLTDisacompanyunderCambodian
law active in the production of rubberwood.
* SOCFINAFS.A.isaholdingcompanyincorporated
under Luxembourg law whose activity is mainly
focused on the management of a portfolio of
active participations in plantations located in
Africa.
Consolidated nancial statements
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* SOCFINASIA S.A. is a holding company under
Luxembourg law whose activity is focused on the
management of a portfolio of interests involved in
plantations located in Southeast Asia.
* SOCFINCO FR S.A. is a Swiss company providing
services, studies and management of agro-
industrial plantations.
* SOCFINDES.A.isananceholdingcompanyunder
Luxembourg law.
* SOCIETEANONYMEFORESTIEREAGRICOLE “SAFA”
is a company under French law holding a stake in
a plantation in Cameroon, Safacam S.A.
* SOCIETE DES PALMERAIES DE LA FERME SUISSE
“SPFS” S.A. is a company incorporated under the
Cameroon law in the production and marketing of
palm oil.
* SODIMEXS.A.isaBelgianprocurementcompany.
* SODIMEXFRS.A.isaSwisscompanyactiveinthe
purchase and sale of equipment for plantations.
* SOGB S.A. is a company under Ivorian law
specialised in the production of palm and rubber
products.
* SOGESCOLFRS.A.isaSwisscompanyactiveinthe
tropical products trade.
* SOGESCOLCAMEROON “SOGESCOL CAM”S.AR.L.
is a company under Cameroonian law active in the
trading of palm oil in Cameroon.
* STPINVESTS.A.is acompanyunder Belgianlaw
with a stake in Agripalma LDA.
* SUD COMOË CAOUTCHOUC “SCC” is a company
under Ivorian law whose business is the processing
and marketing of rubber.
* TERRASIAS.A.isacompanyunderLuxembourglaw
setupforofceownerships.
* VARANASICOLTDisacompanyunderCambodian
law holding concession of agricultural land.
SOCFIN GREEN ENERGY S.A. and SOCFIN RESEARCH
S.A. have been removed from the consolidation
scope in 2021, as they were subsequently
liquidated.
Consolidated nancial statements
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Note 3. Goodwill
2021 2020
EUR EUR
Gross amount at 1
st
January 16,297,341 16,297,341
Gross amount at 31
st
December
16,297,341 16,297,341
Impairment at 1
st
January -11,346,284 -11,346,284
Impairment at 31
st
December -11,346,284 -11,346,284
Net balance at 31
st
December 4,951,057 4,951,057
Goodwill resulted from the initial consolidation of undertakings.
Impairment test on goodwill is disclosed in Note 9.
Note 4. Leases
Right-of-use assets:
EUR
Furniture,
vehicles and
other Buildings
Land and
concession of
agricultural
area TOTAL
Gross value at 1
st
January 2020 5,265,875 4,493,638 8,869,920 18,629,433
Additions of the year 2,639,259 0 479,135 3,118,394
Disposals of the year 0 -288,649 -882,807 -1,171,456
Reclassicationtoothercategories 0 0 136,505 136,505
Foreign exchange differences
-541,783 -26,059 -308,243
-876,085
Gross value at 31
st
December 2020 7,363,351 4,178,930 8,294,510 19,836,791
Accumulated depreciation at 1
st
January 2020 -3,580,252 -1,492,415 -2,622,294 -7,694,961
Depreciation of the year -1,516,247 -298,731 -243,201 -2,058,179
Depreciation reversals
0 127,258 246,164
373,422
Foreign exchange differences 402,398 9,855 97,682 509,935
Accumulated depreciation at 31
st
December 2020
-4,694,101 -1,654,033 -2,521,649 -8,869,783
Net book value at 31
st
December 2020 2,669,250 2,524,897 5,772,861 10,967,008
Gross value at 1
st
January 2021 7,363,351 4,178,930 8,294,510 19,836,791
Additions of the year 1,018,008 244,690 197,754 1,460,452
Foreign exchange differences 8,302 23,118 206,363 237,783
Gross value at 31
st
December 2021 8,389,661 4,446,738 8,698,627 21,535,026
Accumulated depreciation at 1
st
January 2021 -4,694,101 -1,654,033 -2,521,649 -8,869,783
Depreciation of the year -1,500,098 -286,073 -244,045 -2,030,216
Foreign exchange differences -8,124 -50,087 -71,306 -129,517
Accumulated depreciation at 31
st
December 2021
-6,202,323 -1,990,193 -2,837,000 -11,029,516
Net book value at 31
st
December 2021 2,187,338 2,456,545 5,861,627 10,505,510
Consolidated nancial statements
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Lease liabilities
2021 2020
EUR EUR
Long-term lease liabilities
10,977,779 11,081,167
Short-term lease liabilities
1,401,018 1,623,082
Total
12,378,797 12,704,249
Theamountsrecognisedintheincomestatementinrelationwithleasecontractsaredetailedasfollows:
2021 2020
EUR EUR
Depreciation of right-of-use assets 2,030,216 2,058,179
Expenses related to short term leases and leases of low-value assets 2,198,658 1,261,396
Interestexpense(includedinthenancialexpenses) 1,062,744 1,065,813
Total
5,291,618 4,385,388
Information relating to leases where the Group is the lessor is provided in Note 10.
Agricultural concessions
The Group does not own all the land on which the biological assets are planted. In general, these lands are
subject to very long-term concessions from the local public authority. These concessions are renewable.
Company
Date of initial lease or
renewal extension
Duration of the
initial lease
Area
conceded
SOCFINAGRICULTURALCOMPANY“SAC”LTD 2013/2014 50 years 18,473ha (1)
LIBERIANAGRICULTURALCOMPANY“LAC” 1959 77years 121,407ha
SALALARUBBERCORPORATION“SRC” 1960 70years 8,000 ha (3)
SOGB S.A. 1995 99 years 34,712ha
PLANTATIONSSOCFINAFGHANA“PSG” 2013/2016 50 years 18,303 ha
OKOMUOILPALMCOMPANYPLC 1986/2001/2013 92 to 99 years 33,113 ha
SOCAPALMS.A. 2000 60years 58,063ha
SAFACAMS.A. 2019 3 years 2,161ha (4)
AGRIPALMALDA 2009 25 years 4,252 ha (2)(5)
BRABANTA S.A. 2015/2018/2019 25 years 8,689ha
SETHIKULA CO LTD 2010 99 years 4,273ha
VARANASICOLTD 2009 70years 2,386ha
COVIPHAMACOLTD 2008 70years 5,345 ha
PT SOCFINDO 1995/2015/2019 25 to 35 years 47,643ha
(1)Renewableconcessionsforatermof25years
(2)Concessionsrenewabletacitlyforperiodsof25years
(3)Extensibleconcessionsupto40,000ha
(4)SafacamS.A.owns15,529ha
(5)AgripalmaLDAowns665ha
Consolidated nancial statements
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Note 5. Intangible assets
EUR
Concessions
and patents Softwares
Other
intangible
assets TOTAL
Cost at 1
st
January 2020 2,446,788 3,373,831 2,322,142 8,142,761
Additions 0 26,952 139,009 165,961
Disposals -8,182 -7,339 -993,999 -1,009,520
Reclassicationstootherassetclasses 0 0 -78,325 -78,325
Foreign exchange differences -289,769 -189,089 -19,350 -498,208
Cost at 31
st
December 2020 2,148,837 3,204,355 1,369,477 6,722,669
Accumulated depreciation at 1
st
January 2020 -262,321 -1,918,713 -1,927,315 -4,108,349
Depreciation -45,999 -93,593 25,660 -113,932
Depreciation reversals 8,182 7,263 592,472 607,917
Reclassicationstootherassetclasses 0 0 17,395 17,395
Foreign exchange differences 30,754 141,486 19,356 191,596
Accumulated depreciation at 31
st
December 2020 -269,384 -1,863,557 -1,272,432 -3,405,373
Net book value at 31
st
December 2020 1,879,453 1,340,798 97,045 3,317,296
Cost at 1
st
January 2021 2,148,837 3,204,355 1,369,477 6,722,669
Additions 545,053 115,697 8,152 668,902
Disposals -421 -24,514 -6,670 -31,605
Reclassicationstootherassetclasses 0 -187 0 -187
Foreign exchange differences 111,205 131,571 -177 242,599
Cost at 31
st
December 2021 2,804,674 3,426,922 1,370,782 7,602,378
Accumulated depreciation at 1
st
January 2021 -269,384 -1,863,557 -1,272,432 -3,405,373
Depreciation -56,912 -303,291 -414,008 -774,211
Depreciation reversals 397 13,295 6,700 20,392
Reclassicationstootherassetclasses 0 187 0 187
Scope changes 0 0 380,273 380,273
Foreign exchange differences -12,651 -105,428 177 -117,902
Accumulated depreciation at 31
st
December 2021
-338,550 -2,258,794 -1,299,290 -3,896,634
Net book value at 31
st
December 2021 2,466,124 1,168,128 71,492 3,705,744
Consolidated nancial statements
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Note 6. Property, plant and equipment
EUR
Land and
nurseries Buildings
Technical
installations
Furniture,
vehicles and
others
Work in
progress
Advances
and prepay-
ments TOTAL
Cost at 1
st
January 2020
16,539,539 298,292,773 191,388,179 226,981,268 19,114,404 876,771 753,192,934
Additions(*) 1,342,832 9,501,914 11,873,132 6,877,610 23,941,272 175,950 53,712,710
Disposals -163,688 -1,833,639 -6,806,749 -6,560,984 0 -341,935 -15,706,995
Reclassicationstootherassetclasses -2,363,493 5,022,226 -189,589 7,847,458 -13,163,680 -28,640 -2,875,718
Foreign exchange differences -2,040,959 -19,061,984 -17,445,948 -9,031,765 -3,052,169 -62,437 -50,695,262
Cost at 31
st
December 2020
13,314,231 291,921,290 178,819,025 226,113,587 26,839,827 619,709 737,627,669
Accumulated depreciation at 1
st
January 2020
-1,310,949
-159,384,388 -113,088,269
-162,306,635
0 0
-436,090,241
Depreciation -15,278 -13,388,717 -9,918,238 -14,605,950 0 0 -37,928,183
Depreciation reversals 135,990 1,292,720 6,073,210 6,228,054 0 0 13,729,974
Reclassicationstootherassetclasses 0 0 2,227,092 -1,851,373 0 0 375,719
Foreign exchange differences 7,105 8,699,191 8,959,901 7,052,056 0 0 24,718,253
Accumulated depreciation at 31
st
December 2020
-1,183,132
-162,781,194 -105,746,304
-165,483,848
0 0
-435,194,478
Accumulated impairment at 1
st
January 2020
0 0 0
-4,465,511
0 0
-4,465,511
Impairment(**) 0 0 0
-873,022
0 0
-873,022
Accumulated impairment at 31
st
December 2020
0 0 0 -5,338,533 0 0 -5,338,533
Net book value at 31
st
December 2020
12,131,099 129,140,096 73,072,721 55,291,206 26,839,827 619,709 297,094,658
Cost at 1
st
January 2021 13,314,231 291,921,290 178,819,025 226,113,587 26,839,827 619,709 737,627,669
Additions(*) 1,587,433 7,749,688 24,107,099 11,596,992 9,760,923 91,363 54,893,498
Disposals -24,592 -314,696 -866,410 -4,947,258 0 0 -6,152,956
Reclassicationstootherassetclasses -2,096,502 14,077,448 4,630,072 2,167,189 -19,430,684 -60,031 -712,508
Foreign exchange differences 379,901 10,379,533 6,270,146 2,941,732 621,760 11,302 20,604,374
Cost at 31
st
December 2021 13,160,471 323,813,263 212,959,932 237,872,242 17,791,826 662,343 806,260,077
Accumulated depreciation at 1
st
January 2021
-1,183,132
-162,781,194 -105,746,304
-165,483,848 0 0 -435,194,478
Depreciation -23,629 -11,773,048 -9,870,892 -16,401,901 0 0 -38,069,470
Depreciation reversals 10,437 715,773 840,778 4,407,507 0 0 5,974,495
Reclassicationstootherassetclasses 2,470 -191,384 2,768 -259,335 0 0 -445,481
Foreign exchange differences -2,944 -5,300,500 -3,906,362 -2,519,835 0 0 -11,729,641
Accumulated depreciation at 31
st
December 2021
-1,196,798
-179,330,353 -118,680,012
-180,257,412 0 0 -479,464,575
Accumulated impairment at 1
st
January 2021 0 0 0 -5,338,533 0 0 -5,338,533
Impairment(**) 0 0 -1,728,058 -182,271 0 0 -1,910,329
Impairment reversal 0 0 0 3,133,349 0 0 3,133,349
Accumulated impairment at 31
st
December 2021
0 0 -1,728,058 -2,387,455 0 0 -4,115,513
Net book value at 31
st
December 2021 11,963,673 144,482,910 92,551,862 55,227,375 17,791,826 662,343 322,679,989
(*)Additionsfortheperiodincludecapitalisedcosts(seenote33fordetailsonadditionsfortheperiod).
(**)Impairmenttestonproperty,plantandequipmentisdisclosedinNote9.
On 31
st
December 2021, the Group has technical installations and professional equipment pledged as guarantees for borrowings of the
GroupforanamountofEUR11million(2020:EUR15million).DetailsoftheseguaranteesareprovidedinNote32.
The accounting policies adopted for Property, plant and equipment are detailed under Notes 1 and 9.
Consolidated nancial statements
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Note 7. Biological assets
Palm Rubber Others TOTAL
EUR Mature Immature Mature Immature
Cost at 1
st
January 2020 431,535,368 28,598,604 209,301,430 105,229,459 14,348 774,679,209
Additions(*) 210,174 12,727,398 81,726 10,483,544 0 23,502,842
Disposals -4,065,662 -11,322 -2,175,947 -558,531 -7,217 -6,818,679
Reclassicationstootherassetclasses 19,410,380 -17,340,500 8,908,400 -8,614,787 0 2,363,493
Foreign exchange differences -36,445,352 -2,742,346 -12,147,752 -8,146,838 0 -59,482,288
Cost at 31
st
December 2020 410,644,908 21,231,834 203,967,857 98,392,847 7,131 734,244,577
Accumulated depreciation at 1
st
January 2020 -124,260,984 0 -66,526,840 0 -10,209 -190,798,033
Depreciation -17,669,742 0 -9,110,797 0 -56 -26,780,595
Depreciation reversals 3,879,910 0 1,686,359 0 7,217 5,573,486
Foreign exchange differences 6,113,352 0 3,825,810 0 0 9,939,162
Accumulated depreciation at
31
st
December 2020
-131,937,464 0 -70,125,468 0 -3,048 -202,065,980
Accumulated impairment at 1
st
January 2020 -24,302,445 -127,949 -19,653,198 -20,255,646 0 -64,339,238
Impairment(**) -271,036 0 -509,870 -6,211,313 0 -6,992,219
Reclassicationstootherassetclasses -113,583 113,583 3,559,524 -3,559,524 0 0
Foreign exchange differences 3,592,276 14,366 1,095,990 2,021,586 0 6,724,218
Accumulated impairment at
31
st
December 2020
-21,094,788 0 -15,507,554 -28,004,897 0 -64,607,239
Net book value at 31
st
December 2020 257,612,656 21,231,834 118,334,835 70,387,950 4,083 467,571,358
Cost at 1
st
January 2021 410,644,908 21,231,834 203,967,857 98,392,847 7,131 734,244,577
Additions(*) 0 7,643,113 0 11,031,067 0 18,674,180
Disposals -1,272,107 -528,813 -2,929,787 -803,228 0 -5,533,935
Reclassicationstootherassetclasses 10,558,817 -9,430,939 41,385,694 -41,246,637 0 1,266,935
Foreign exchange differences 14,573,822 1,005,994 9,651,895 4,114,786 0 29,346,497
Cost at 31
st
December 2021 434,505,440 19,921,189 252,075,659 71,488,835 7,131 777,998,254
Accumulated depreciation at 1
st
January 2021 -131,937,464 0 -70,125,468 0 -3,048 -202,065,980
Depreciation -17,692,741 0 -6,584,164 0 -56 -24,276,961
Depreciation reversals 923,055 0 3,133,119 0 0 4,056,174
Reclassicationstootherassetclasses -1,661,531 0 0 0 0 -1,661,531
Foreign exchange differences -3,472,603 0 -2,488,179 0 0 -5,960,782
Accumulated depreciation at 31
st
December 2021 -153,841,284 0 -76,064,692 0 -3,104 -229,909,080
Accumulated impairment at 1
st
January 2021 -21,094,788 0 -15,507,554 -28,004,897 0 -64,607,239
Impairment(**) -6,090,512 0 -201,978 0 0 -6,292,490
Impairment reversal 5,434,846 0 0 143,516 0 5,578,362
Reclassicationstootherassetclasses 0 0 -19,693,964 19,693,964 0 0
Foreign exchange differences -1,078,241 0 -1,728,805 -1,104,096 0 -3,911,142
Accumulated impairment at
31
st
December 2021
-22,828,695 0 -37,132,301 -9,271,513 0 -69,232,509
Net book value at 31
st
December 2021 257,835,461 19,921,189 138,878,666 62,217,322 4,027 478,856,665
Consolidated nancial statements
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(*)Additionsfortheperiodincludecapitalisedcosts(seenote33fordetailsonadditionsfortheperiod).
(**)ImpairmenttestonbiologicalassetsisdisclosedinNote9.
On 31
st
December 2021, the Group has biological assets pledged as guarantees for borrowings of the Group
foranamountofEUR13million(2020:EUR21million).DetailsoftheseguaranteesareprovidedinNote32.
Accounting policy regarding current biological assets is disclosed in note 1.13.
Consolidated nancial statements
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Note 8. Depreciation and impairment
2021 2020
EUR EUR
Depreciation
Ofintangibleassets(Note5) 393,938 113,932
Ofproperty,plantandequipmentexcludingbiologicalassets(Note6) 38,069,470
37,928,183
Ofbiologicalassets(Note7) 24,276,961 26,780,595
Ofinvestmentproperties(Note10) 235,077 167,295
Ofright-of-useassets(Note4) 2,030,216 2,058,179
Impairment
Ofproperty,plantandequipmentexcludingbiologicalassets(Note6) -1,223,020 873,022
Ofbiologicalassets(Note7) 714,128 6,992,219
Total at 31
st
December 64,496,770
74,913,425
Note 9. Impairment of assets
Goodwill
Impairment tests on goodwill are performed at least
once a year to assess whether the carrying amount is
still appropriate.
Intangible and tangible assets and right-of-use
of assets
At each reporting date, the Group reviews the carrying
amount of its intangible and tangible assets and right-
of-use assets in order to assess whether there is any
indication of impairment.
If such indication exists, the recoverable amount of
the asset is estimated to determine the amount of the
impairment loss.
At 31
st
December 2021, an impairment loss of EUR 1.9
millionwasrecognised(2020:EUR0.9million)andan
impairment reversal for 3.1 million was recognised on
Property,plantandequipment(2020:EURnil).
Bearer biological assets
At each reporting date, the Group assesses if there
is any indication that its biological assets may be
impaired.
Forthispurpose,theGroupassessesseveralindicators:
Thesignicantandsustaineddecreasingtrendinthe
prices of naturalrubber(TSR20 1
st
position onSGX)
and crude palm oil (CIF Rotterdam) was considered
an observable sign that the biological assets may have
been impaired. A decrease in these prices at reporting
date greater than 15% compared to an average of
5-year value has been set by the Group to be an
impairment indicator.
At 31
st
December 2021, the decrease in prices does
notexceed15%oftheaveragepriceoverthepast5
years for the Rubber and Palm segment.
The Group considers, as well, average prices over the
six months before reporting date and average prices
over the last twelve months instead of only closing
pricestoavoidseasonaluctuationsinthepricesof
supply materials.
Consolidated nancial statements
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The Group reviews also the prices observed on local
market and considers a decrease in these prices at the
closingdateofmorethan15%comparedtoanaverage
of values over 5 years as an impairment indicator.
Based on these criteria, for the Rubber segment, the
riseinpricesobservedduringthenancialyear2021
doesnotexceed 15%oftheaverage pricesoverthe
past 5 years. For the Palm segment, the review of
global and local prices do not indicate any impairment
indicator.
In addition to these external indicators, the Group
considersthefollowingindicators:
-Internalperformanceindicators;
-Criteriarelatingtothelocalmarket;
-Physicalindicatorsofimpairment;
-Signicantchangesinplantationsthatcouldhavea
materialimpactontheirfuturecashows.
The review of impairment indicators led the Group
to conclude that a sign of impairment exists for
Agripalma.
If an indication of impairment is identied, the
recoverable amount of the bearer biological assets is
determined.
Impairment tests must be performed on the smallest
identiablegroupofassetswhichgeneratescashows
independently of other assets or groups of assets and
forwhichtheGrouppreparesnancialinformationfor
the Board of Directors.
The identication of Cash Generating Units (CGUs)
depends,inparticular,on:
- howtheGroupmanagestheactivitiesoftheentity;
- the way in which decisions are made with regards to
thepursuitorthedisposalofitsactivitiesand;
- the existence of an active market for all or part of
the production.
TheGroupconsidersthepoliticalandcountryspecic
risk factors while reviewing business evolution.
Therefore, companies are grouped within the CGU
country.
The recoverable amount of bearer biological assets is
determined from the calculation of value in use using
the most recent information approved by the local
management. The Group uses the discounted value
of expected net cash ows which are discounted
at a pre-tax rate. At reporting date, the nancial
projection incorporates the full exploitation of the
younger bearer biological assets. The operational life
ranges between 25 and 30 years for both crops. This
period can be adapted according to the particular
circumstances for each entity.
The value in use calculation has been very sensitive
to:
- changes in the margins achieved by the entity and,
- changes related to the discount rate.
Changes in realised margins
Initially, the Group determines separately the expected
production of each category of bearer biological
assets within the entity over their remaining life.
This expected production is estimated on the basis of
the surface areas planted at reporting date as well
astheactualcropyieldrecordedduringthenancial
year which depends on the maturity of the bearer
biological asset. Production is then valued on average
basisofve-yearofthemarginsachievedbytheentity
in relation to the agricultural activity. The value in
use of the bearer biological asset is then obtained
by discounting these cash ows. Average margins
are considered constant over the duration of the
nancialprojection.Noindexingfactorisconsidered.
Based on the existence of an impairment indication
and following subsequent impairment tests,
impairmentlossesofEUR6.1millionforAgripalmaand
EUR 0.2 million for Coviphama have been accounted
forin2021(Notes6and7),andanimpairmentreversal
of EUR 5.2 million for PSG has been accounted for
in 2021.
As of 31
st
December 2021, accumulated impairment
losses in the palm business segment amounted to
EUR 9.4 million for Brabanta, EUR 9.2 million for
AgripalmaandEUR4.3millionforSocnAgricultural
Company. For the Rubber segment, the accumulated
impairment losses are EUR 28.9 million for SRC,
EUR 8.6 million for Safacam, EUR 5.7 million for
Coviphama, EUR 1.9 million for PSG and 1.2 million
forSocnKCD(Note7).
Consolidated nancial statements
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Note 10. Investment properties
EUR
Cost at 1
st
January 2020 9,853,047
Additions 3,555
Cost at 31
st
December 2020 9,856,602
Accumulated depreciation at 1
st
January 2020 -5,629,952
Depreciation -167,295
Accumulated depreciation at 31
st
December 2020 -5,797,247
Net book value at 31
st
December 2020 4,059,355
Cost at 1
st
January 2021 9,856,602
Additions 36,504
Cost at 31
st
December 2021 9,893,106
Accumulated depreciation at 1
st
January 2021
-5,797,247
Depreciation
-273,940
Depreciation reversals
38,863
Accumulated depreciation at 31
st
December 2021
-6,032,324
Net book value at 31
st
December 2021
3,860,782
Theleasesareintheformofa9-yearrenewablelease.PremisesrentedoftheChampdeMarsbuildinggenerated
rentalincomeofEUR0.5million(2020:EUR0.5million).Thedirectoperatingexpensesincurredbythisproperty
amountedtoEUR0.3million(2020:EUR0.3million).
The 1
st
and 4
th
oorsofthebuildinglocatedat2,PlaceduChampdeMars,inBrusselswererevaluedbyan
independentappraiserduringtheacquisitionofImmobilièredelaPépinièreinDecember2006.Thisvaluewas
usedasdeemedcostunderIFRS1(rst-timeapplication).
As of 31
st
December2020,thefairvalueoftheGroundoor,aswellasthe1
st
and 4
th
oorsofthebuilding
amounts, has been estimated by an independent assessor to EUR 4.2 million.
Consolidated nancial statements
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Note 11. Non-wholly owned subsidiaries in which non-controlling interests
are signicant
Interests of non-controlling interests in the activities of the Group
Subsidiary Main location
Percentage of equity shares of
non-controlling interest
Percentage of voting rights of
non-controlling interests
2021 2020 2021 2020
Production of palm oil and rubber
SOGB S.A. Ivory Coast 58.91% 58.91% 26.84% 26.84%
OKOMUOILPALMCOMPANYPLC Nigeria 57.92% 57.92% 34.77% 34.77%
SOCIETE AFRICAINE FORESTIERE ET
AGRICOLEDUCAMEROUN“SAFACAM”S.A.
Cameroon 55.45% 55.45% 30.95% 30.95%
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
Cameroon 56.48% 56.48% 32.54% 32.54%
PTSOCFININDONESIA“SOCFINDO” Indonesia 47.72% 47.72% 10.00% 10.00%
Production of rubber
LIBERIANAGRICULTURALCOMPANY“LAC” Liberia 35.49% 35.49% 0.00% 0.00%
Investment portfolio management
SOCFINASIA S.A. Luxembourg 41.91% 41.91% 41.91% 41.91%
SOCFINAF S.A. Luxembourg 35.49% 35.49% 35.49% 35.49%
Subsidiary
Net income attributed to
non-controlling interests in
the subsidiary during the
nancial period
Accumulated non-controlling
interests in the subsidiary
2021 2020 2021 2020
EUR EUR EUR EUR
SOGB S.A. 13,862,660 6,566,980 60,992,515 52,582,568
OKOMUOILPALMCOMPANYPLC 17,944,616 10,991,337 54,513,137 43,999,962
SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU
CAMEROUN“SAFACAM”S.A.
2,599,692 -163,831 25,361,064 23,641,489
SOCIETECAMEROUNAISEDEPALMERAIES“SOCAPALM”S.A.
12,653,924 10,289,683 54,565,923 57,043,361
PTSOCFININDONESIA“SOCFINDO” 28,637,531 14,923,085 27,904,720 24,096,671
LIBERIANAGRICULTURALCOMPANY“LAC” 2,079,176 -310,025 11,681,836 8,675,899
SOCFINASIA S.A. 1,986,846 -1,527,405 67,898,023 53,912,393
SOCFINAF S.A. -6,210,608 -7,384,833 23,575,883 15,539,267
Subsidiariesthatholdnon-controllingintereststhatarenotsignicantindividually
30,161,006 11,431,676
Non-controlling interests
356,654,107 290,923,286
Consolidated nancial statements
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Summary nancial information concerning subsidiaries whose interests of non-controlling interests are
signicant for the Group excluding intragroup eliminations
Subsidiary Current assets
Non-current
assets
Current
liabilities
Non-current
liabilities
2020 EUR EUR EUR EUR
SOGB S.A. 40,020,783 100,326,199 39,002,709 13,681,716
OKOMUOILPALMCOMPANYPLC 33,642,117 83,538,525 12,854,812 30,080,524
SOCIETE AFRICAINE FORESTIERE ET
AGRICOLEDUCAMEROUN“SAFACAM”S.A.
9,988,293 35,298,471 10,601,283 4,763,103
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
34,148,638 112,062,872 28,625,313 3,099,446
PTSOCFININDONESIA“SOCFINDO” 28,637,540 85,874,710 28,628,385 35,114,903
LIBERIANAGRICULTURALCOMPANY“LAC” 14,951,857 68,235,985 14,363,246 26,125,905
SOCFINASIA S.A. 110,955,167 316,012,891 4,126,309 0
SOCFINAF S.A. 4,579,869 549,824,639 175,820,665 90,000,000
2021 EUR EUR EUR EUR
SOGB S.A. 47,069,842 100,818,900 36,697,511 10,223,275
OKOMUOILPALMCOMPANYPLC 33,527,881 106,235,499 16,119,871 39,330,460
SOCIETE AFRICAINE FORESTIERE ET
AGRICOLEDUCAMEROUN“SAFACAM”S.A.
14,000,204 34,504,233 10,924,741 5,404,975
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
26,800,996 109,893,878 25,202,975 3,069,977
PTSOCFININDONESIA“SOCFINDO” 48,455,059 91,150,642 37,997,748 36,912,343
LIBERIANAGRICULTURALCOMPANY“LAC” 17,920,859 75,090,781 14,696,615 27,864,293
SOCFINASIA S.A. 41,424,023 410,964,167 5,117,423 0
SOCFINAF S.A. 29,901,483 504,633,199 53,964,692 186,463,935
Consolidated nancial statements
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Subsidiary
Revenue from
ordinary
activities
Net income for
the year
Comprehensive
income for the
year
Dividends
paid to non-
controlling
interests
2020 EUR EUR EUR EUR
SOGB S.A. 101,349,845 11,666,285 11,666,285 1,237,431
OKOMUOILPALMCOMPANYPLC 57,308,888 18,084,173 18,084,173 1,728,013
SOCIETE AFRICAINE FORESTIERE ET AGRICOLE
DUCAMEROUN“SAFACAM”S.A.
25,489,988 1,036,538 1,036,538 307,960
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
108,244,754 17,958,810 17,958,810 5,595,101
PTSOCFININDONESIA“SOCFINDO” 121,354,132 36,586,206 36,586,206 3,714,377
LIBERIANAGRICULTURALCOMPANY“LAC” 29,475,396 -840,853 -840,853 0
SOCFINASIA S.A. 0 32,404,338 32,404,338 6,597,370
SOCFINAF S.A. 0 6,336,083 6,336,083 0
2021 EUR EUR EUR EUR
SOGB S.A. 126,645,632 22,453,119 22,453,119 2,455,221
OKOMUOILPALMCOMPANYPLC 79,363,158 23,976,881 23,976,881 5,234,727
SOCIETE AFRICAINE FORESTIERE ET AGRICOLE
DUCAMEROUN“SAFACAM”S.A.
32,790,020 3,778,438 3,778,438 33
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
114,731,158 20,617,398 20,617,398 8,682,053
PTSOCFININDONESIA“SOCFINDO” 160,251,333 64,841,457 64,841,457 5,499,223
LIBERIANAGRICULTURALCOMPANY“LAC” 36,783,462 4,018,160 4,018,160 0
SOCFINASIA S.A. 0 44,023,278 44,023,278 7,390,739
SOCFINAF S.A. 0 5,522,213 5,522,213 0
Consolidated nancial statements
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Net cash inows (outows)
Net cash inows
(outows)Subsidiary
Operating
activities
Investing
activities
Financing
activities
2020 EUR EUR EUR EUR
SOGB S.A. 18,235,177 -8,094,546 -2,391,963 7,748,668
OKOMUOILPALMCOMPANYPLC 25,629,989 -22,258,792 1,220,468 4,591,664
SOCIETE AFRICAINE FORESTIERE ET
AGRICOLEDUCAMEROUN“SAFACAM”S.A.
3,582,099 -2,172,371 -4,103,183 -2,693,455
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
28,811,509 -12,241,939 -21,591,795 -5,022,225
PTSOCFININDONESIA“SOCFINDO” 56,649,530 -11,101,593 -37,143,768 8,404,169
LIBERIANAGRICULTURALCOMPANY“LAC” 2,246,443 -3,530,282 1,562,183 278,343
SOCFINASIA S.A. 12,987,158 0 -17,417,102 -4,429,944
SOCFINAF S.A. 6,227,728 -5,398,367 195,465 1,024,826
2021 EUR EUR EUR EUR
SOGB S.A. 14,435,766 -9,570,729 -12,136,117 -7,271,080
OKOMUOILPALMCOMPANYPLC 49,550,771 -28,715,135 -10,902,826 9,932,810
SOCIETE AFRICAINE FORESTIERE ET
AGRICOLEDUCAMEROUN“SAFACAM”S.A.
2,315,684 -2,647,396 337,688 5,976
SOCIETECAMEROUNAISEDEPALMERAIES
“SOCAPALM”S.A.
30,591,306 -9,720,446 -30,342,263 -9,471,402
PTSOCFININDONESIA“SOCFINDO” 71,784,807 -9,573,215 -54,992,234 7,219,358
LIBERIANAGRICULTURALCOMPANY“LAC” 5,539,703 -3,957,347 -1,826,500 -244,144
SOCFINASIA S.A. 41,877,748 4,456,133 -19,251,988 27,081,893
SOCFINAF S.A. -1,381,090 32,619,156 -21,502,408 9,735,658
The nature and evolution of the risks associated with
the interests held by the Group in the subsidiaries
remained stableover the nancial periodcompared
to the previous year.
Note 12. Financial assets at fair value through other comprehensive income
2021 2020
EUR EUR
Fair value at 1
st
January 847,018 896,015
Changeinfairvalue(*) -36,378 -48,997
Disposals -95,062 0
Fair value at 31
st
December 715,578 847,018
(*)ThevariationinthefairvalueofthenancialassetsisaccountedundertheOtherComprehensiveIncome.
EUR Cost (historical) Fair value
2021 2020 2021 2020
Financial assets at fair value through other
comprehensive income
600,118 695,180 715,578 847,018
Consolidated nancial statements
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Note 13. Deferred taxes
* Components of deferred tax assets and liabilities
2021 2020
EUR EUR
IAS2/IAS41:Agriculturalproduction -3,299,090 -617,092
IAS12:Taxcredits -221,701 -3,230,043
IAS16:Property,plantandequipment -7,100,792 -5,530,594
IAS19:Pensionobligations 10,443,059 10,231,453
IAS21:Translationdifferences -68,147 14,909
IAS37:Provisionsforrisksandcharges -27,097 -144,528
IAS38:Formationexpenses 513,557 994,428
IAS38:Researchcosts 832,888 891,311
IFRS9:Financialassetsmeasuredatfairvaluethroughother
comprehensive income
-74,277 -53,958
IFRS9:Forwardexchangecontract 141,681 -84,846
IFRS16:Leases 583,960 562,394
IAS23:Capitalisedinterests 335,675 0
IFRS3:Fairvalueofinvestmentproperty -15,614 -14,384
Others 448,853 229,336
Balance at 31
st
December (*) 2,492,955 3,248,386
Of which deferred tax assets 19,434,382 14,640,683
Of which deferred tax liabilities -16,941,425 -11,392,299
(*)Theabovedeferredtaxesarepresentedpercategoryofdeferredtaxesresultingfromconsolidatedadjustments.Theyare
calculated company per company and the net position between deferred tax liabilities and deferred tax assets is presented.
* Contingent tax assets and liabilities
Some of the subsidiaries have accumulated tax losses
that are limited or not over time or capital allowances
limited or not over time. Due to the instability
which may exist in these countries with regards to
the evolution of tax legislation or its application, no
deferred tax assets have been booked related to these
tax credits.
Brabanta, SRC, Socn KCD, Agripalma, Camseeds,
Immobilière de la Pépinière and Coviphama have
unused tax losses which recoverability is uncertain of
EUR20.7million,EUR17.8million,EUR7.9million,
EUR5.4million,EUR3.0million,EUR2.6millionand
EUR 1.1 million respectively at 31
st
December 2021.
Socnaf has unused tax losses of EUR 125.9
million, PNS Ltd of EUR 14.1 million and Socn of
EUR 10.2 million.
Consolidated nancial statements
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Note 14. Current tax assets and liabilities
* Components of current tax assets
2021 2020
EUR EUR
Current tax assets at 1
st
January 14,317,805 13,014,084
Tax income 314,436 1,111,085
Other taxes -1,986,417 2,190,815
Taxes paid or recovered 2,082,439 -198,055
Tax adjustments 134,416 -783,725
Foreign exchange differences 429,292 -1,016,399
Current tax assets at 31
st
December
15,291,971 14,317,805
* Components of current tax liabilities
2021 2020
EUR EUR
Current tax liabilities at 1
st
January 32,208,682 22,182,525
Tax expense 55,230,723 41,192,925
Othertaxes(*) 37,523,894 25,994,668
Taxes paid or recovered -71,033,459 -55,587,986
Tax adjustments
-6,388,250 -291,363
Foreign exchange differences 786,874 -1,282,086
Current tax liabilities at 31
st
December 48,328,464 32,208,682
(*)Othertaxesarecomposedoftaxesnotenclosedingeneraltaxexpenses:VAT,witholdingtax,customtax,...
Consolidated nancial statements
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Note 15. Income tax expense
* Components of the income tax
2021
2020
Restated
EUR EUR
Currentincometaxexpense(*) 53,538,854 36,572,117
Deferredtaxexpense/(income) 840,121 -1,591,001
Tax expense at 31
st
December
54,378,975 34,981,116
(*) Withholding tax on dividends is presented within
income tax expense. In 2020, a withholding tax amounting
EUR3.8millionwasmisclassiedwithinthecaption«Other
operatingexpenses».Forbettercomparisonwithprioryear,
a correction has been applied on the 2020 nancial year
comparativegures.
* Components of the deferred tax expense / (income)
2021
2020
Restated
EUR EUR
IAS12:Deferredtaxes -2,128,714 3,153,377
IAS19:Pensionobligations -210,557 2,035,193
IAS38:Intangibleassets
599,504 119,300
IAS2/IAS41:Fairvalueofagriculturalproduce
1,851,884 -2,148,126
IFRS9:Forwardexchangecontracts
-175,964 2,432
IFRS3:Fairvaluationofbuildings
0 -92,662
IAS16:Tangibleassets
1,470,442 -3,401,427
IFRS16:Leases
-15,667 134,011
IAS37:Provisionsforrisksandcharges
-117,893 -1,372,655
IAS21:Foreignexchangedifferences
81,915 -76,027
IAS23:Capitalisedinterests
-344,950 0
Others
-169,879 55,583
Deferred tax expense / (income) at 31
st
December
840,121 -1,591,001
Consolidated nancial statements
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* Reconciliation of income tax expense
2021
2020
Restated
EUR EUR
Prot before tax from continuing operations 220,921,900 64,292,658
Nominal tax rate of the parent company
24.94% 24.94%
Nominal tax rate of subsidiaries
from1%to33% from14%to38.5%
Income tax at nominal tax rates of subsidiaries
48,036,580 19,388,556
Unfunded taxes
1,359 1,248,410
Denitivelytaxedincome
2,063,933 206,499
Use of capital allowances
-11,285,390 -8,363,570
Specictaxregimesinforeigncountries
20,696,496 9,441,194
Non-taxable income
-6,428,348 -1,287,427
Non-deductible expenses
6,932,239 7,227,816
Use of accumulated tax losses
-13,417,994 0
Losses carried forward
6,356,042 7,845,638
Othertaxbenets
-91,063 -291,178
Additional tax assessment
23,775 183,066
Impact of change in tax rate
1,493,435 -618,025
Other adjustments
-2,089 137
Tax expense at 31
st
December
54,378,975 34,981,116
* Change of rate for the subsidiaries
SAFA’staxratehasbeenreducedfrom33%to28%.
In 2020, the income tax rate for Swiss entities has
increased from 9.2% to 14.06% for Socn Green
Energy,SocnResearch,SocncoFR,SogescolFRand
SodimexFRanddecreasedfrom19.86%to14.06%for
Induservices FR.
In 2020, the income tax rate for Belgian entities has
droppedfrom29.58%to25%.
Since 2021, companies listed in Cameroon are eligible
forareducedtaxrateof27.5%.
In2021,theincometaxrateforSocndohasdropped
from25%to22%.Asfrom2022,theincometaxrate
forSocndowilldropfrom22%to20%,thisratehas
been used in the computation of the deferred taxes as
of 31
st
December 2021.
* Tax adjustments
In 2021, the Liberian tax authorities conducted a tax
audit for the years 2013 to 2018. Following this audit,
the taxauthorities conrmeda losscarried forward
of USD 7.6 million. As LAC registered a net prot
as of 2021 year-end, and there are indicators that
remaining losses carried forward will be used over the
next years. Thus the remaining losses carried forward
at 2021 year-end have been recognised as deferred
tax assets.
Consolidated nancial statements
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Note 16. Inventories
* Carrying value of inventories by category
2021 2020
EUR EUR
Raw materials 28,158,214 21,696,351
Consumables 21,817,225 18,814,147
Spare parts 28,075,902 26,929,320
Production in progress 1,873,597 3,075,099
Finished products 37,191,567 30,238,452
Down-payments and orders in progress 2,037,012 5,269,275
Gross amount (before impairment) at 31
st
December
119,153,517 106,022,644
Inventory write-downs -4,647,661 -3,686,492
Net amount at 31
st
December 114,505,856 102,336,152
* Reconciliation of inventories
2021 2020
EUR EUR
Situation at 1
st
January
106,022,644 108,101,145
Change in inventory 6,821,365 13,560,200
Fair value of agricultural products 3,227,540 -7,798,959
Foreign exchange differences 3,081,968 -7,839,742
Gross amount (before impairment) at 31
st
December 119,153,517 106,022,644
Inventory write-downs
-4,647,661 -3,686,492
Net amount at 31
st
December
114,505,856 102,336,152
* Quantity of inventory by category
2020 Raw materials Production-in-progress Finished goods
Palmoil(tons) 1,374 0 15,869
Rubber(tons) 29,043 0 20,661
Others(units) 0 11,004,801 1,275,571
2021 Raw materials Production-in-progress Finished goods
Palmoil(tons) 1,346 0 43,454
Rubber(tons) 31,684 0 16,530
Others(units) 0 4,737,950 2,909,556
Consolidated nancial statements
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Note 17. Trade receivables (current assets)
2021 2020
EUR EUR
Trade receivables 37,632,950 18,922,729
Advances and prepayments 4,449,841 15,159,084
Total at 31
st
December 42,082,791 34,081,813
In 2020, advances and prepayments mainly included a down-payment for the construction of an oil mill at
Okomu’s plantation, amounting to EUR 12 million.
Note 18. Other receivables (current assets)
2021 2020
EUR EUR
Social security 1,259,723 1,238,716
Otherreceivables(*) 6,822,949 10,090,528
Accrued charges 2,155,468 3,013,217
At 31
st
December 10,238,140 14,342,461
(*)Otherreceivablesincludereceivableslinkedtonon-operationalactivities
The accounting principles applied and the risk management for other receivables are detailed under Notes
1 and 34.
Consolidated nancial statements
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Note 19. Cash and cash equivalents
* Reconciliation with the amounts in the nancial statements
2021 2020
EUR EUR
Current account 144,315,004 58,213,617
Financial instruments -999,569 697,836
Balance at 31
st
December
143,315,435 58,911,453
* Reconciliation with the cash ow statement
2021 2020
EUR EUR
Current account 144,315,004 58,213,617
Bankoverdrafts(*) -7,029,326 -4,058,321
Balance at 31
st
December
137,285,678 54,155,296
(*)SeealsoNote23.
Note 20. Share capital and share premium
Issued and fully paid capital amounted to
EUR 24.8 million as of 31
st
December2021(Nochange
compared to 2020). There is a share premium of
EUR 0.5 million added to the issued capital.
In accordance with the law of 28
th
July 2014 on the
cancellation of bearer shares, 80,280 shares have been
cancelled, as the holders of these shares have not
registered with a depositary as required by law.
To-date,the“CaissedeConsignation”hasnotopened
anyclaimle.
At 31
st
December 2021, the Company’s share capital is
representedby14,159,720shares.
Ordinary shares 2021 21
Number of Shares at 31
st
December 14,159,720 14,159,720
Number of fully paid shares issued without designation of par value
14,159,720 14,159,720
Note 21. Legal reserve
In accordance with Luxembourg commercial law, the
companyisrequiredtoallocateaminimumof5%of
itsnetprotforeachnancialyeartoalegalreserve.
This requirement ceases to be necessary once the
balanceonthelegalreservereaches10%oftheissued
share capital. The legal reserve is not available for
distribution to the shareholders.
Consolidated nancial statements
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Note 22. Pension obligations
Dened benet pension plan and post-employment sickness
The Group provides a dened benet pension plan to its
employees in its Indonesian subsidiary. The latter pay benets
which are payable in the event of retirement or voluntary
resignation.Thebenetspaidarecalculatedasapercentageof
salary and are based on the number of years of service. The plan
is based on the employment contract for the employees and on
thecollectiveagreementsforthelabourers.Thebenetspayable
totheemployeesarenotnancedbyanyspecicassetagainst
the provisions.
Apart from the local applicable social security provisions, most
oftheGroup’semployeesinAfricabenetfromadenedbenet
pensionplan.Thesubsidiariespaybenetswhicharepayablein
the event of retirement and in case of dismissal in some countries.
Allowances paid are expressed as a percentage of salary and are
based on the number of years of service. The plans are governed
by the local collective agreements in force in each country.
The benets payable to the employees are not nanced by a
specicassetinreturnforprovisions.
2021 2020
EUR EUR
Present value
of
obligations
Fair value of
the benet
plans
Net
amount
recognised
Present value
of
obligations
Fair value of
the benet
plans
Net
amount
recognised
Net amount recognised in the statement of
nancial position for dened benet plans
59,869,569 -8,861,208 51,008,361 62,078,976 -11,150,694 50,928,282
Components of net charge
Current service costs 3,933,744 3,933,744 3,761,695 3,761,695
Financial costs 2,802,324 3,706 2,806,030 3,979,784 -2,858 3,976,926
Actuarial gains and losses recognised during
the year
-106,422 -106,422 -81,539 -81,539
Past service costs -737,574 -737,574 4,952 4,952
Dened benet plan costs 5,998,494 -102,716 5,895,778 7,746,431 -84,397 7,662,034
Movements in liabilities / net assets recognised in the statement of nancial position
At 1
st
January 62,078,977 -11,150,694 50,928,284 63,848,361 -9,226,715 54,621,646
Costs as per income statement 5,998,494 -102,716 5,895,778 7,746,431 -84,397 7,662,034
Contributions by employer -5,342,291 -1,459,704 -6,801,994 -5,470,731 -1,613,170 -7,083,901
Contributions by employees 987,406 -987,406
0
787,454 -787,454
0
Costs of services rendered -5,034,135 5,034,135
0
-557,428 557,428
0
Actuarial gains and losses of the year recognised
in other comprehensive income
-1,901,145 27,031 -1,874,114 1,171,313 40,703 1,212,016
Reclassicationofnetasset 91,967 91,967
Foreign exchange differences
3,082,267 -313,808 2,768,459 -5,446,422 -37,088 -5,483,510
At 31
st
December 59,869,574 -8,861,195 51,008,380 62,078,977 -11,150,694 50,928,284
Provisions are based on actuarial valuation reports prepared in January 2022.
Consolidated nancial statements
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Actuarial gains and losses recognised in other comprehensive income
2021 2020
EUR EUR
Present value
of
obligations
Fair value of
the benet
plans
Net
amount
recognised
Present value
of
obligations
Fair value of
the benet
plans
Net
amount
recognised
Adjustments of liabilities related to experience -2,379,550 -2,379,550 7,518,671 7,518,671
Changesinnancialassumptionsrelatedto
recognised liabilities
4,302,011 4,302,011 -8,588,740 19,463 -8,569,278
Changes in demographic assumptions related to
recognised liabilities
-21,314 -21,314 -101,242 -101,242
Return on assets in the plan -27,031
-27,031
-60,166 -60,166
Actuarial gains and losses recognised during
the period in other comprehensive income
1,901,147 -27,031 1,874,116 -1,171,312 -40,703 -1,212,016
Actuarial valuation assumptions
2021 2020
EUROPE
Average discount rate 0.35% 0.20%
Expected long-term returns of plan assets 0 106,422
Future salary increases 1.50% 1.50%
Averageremainingactivelifeofemployees(inyears) 8.83 9.3
AFRICA
Average discount rate from2.63%to12.61% from1to15.30%
Expected long-term returns of plan assets N/A N/A
Future salary increases from1.74%to12% from2to15.66%
Averageremainingactivelifeofemployees(inyears) 19.50 19.60
ASIA
Average discount rate from3.40%to7.60% 6.53%
Expected long-term returns of plan assets N/A N/A
Future salary increases 6.50% 6.50%
Averageremainingactivelifeofemployees(inyears) 12.96 13.33
Consolidated nancial statements
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Sensitivity analysis of the actuarial value of dened benet obligations
2021 2020
EUR EUR
EUROPE
Actuarial value of the obligation
- Pension plan
9,189,042 12,370,070
- Fair value of plan assets -7,147,529 -9,768,071
Total as of 31
st
December 2,041,513 2,602,000
Actuarial rate (on pension plan)
Increaseof0.5% 8,637,612 11,714,153
Decreaseof0.5% 9,828,001 13,138,622
Expected future salary increases (on pension plan)
Increaseof0.5% 9,257,387 12,470,329
Decreaseof0.5% 9,124,108 12,274,841
AFRICA
Actuarial value of the obligation
- Pension plan 13,768,201 14,593,998
- Fair value of plan assets -1,713,679 -1,382,636
Total as of 31
st
December 12,054,522 13,211,362
Actuarial rate (on pension plan)
Increaseof0.5% 13,316,089 14,173,364
Decreaseof0.5% 14,228,460 15,019,259
Expected future salary increases (on pension plan)
Increaseof0.5% 14,197,217 15,070,410
Decreaseof0.5% 13,341,712 14,122,277
ASIA
Actuarial value of the obligation
- Pension plan 35,065,614 33,536,326
-Otherlongtermbenets 1,846,712 1,578,583
Total as of 31
st
December 36,912,326 35,114,910
Actuarial rate (on pension plan)
Increaseof0.5% 35,702,753 32,295,702
Decreaseof0.5% 38,247,974 35,038,385
Expected future salary increases (on pension plan)
Increaseof0.5% 38,104,204 34,912,355
Decreaseof0.5% 35,777,001 32,401,453
Thesensitivityanalysisisbasedonthesameactuarialmethodusedtomeasuretheobligationsofthedened
benetplans.
Consolidated nancial statements
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Impact of the dened benet pension plan on future cash ows
2022 2021
Estimatedcontributionsforthenextnancialyear(ineuros) 5,991,897 6,360,899
2021 2020
Weightedaveragedurationofdenedbenetplanobligations(inyears)
EUROPE 5.9 5.1
AFRICA 6.7 5.8
ASIA 12.8 14.0
Dened contribution pension scheme
2021 2020
Accountedexpenseforthedenedcontributionpensionplan 2,959,855 1,045,677
Consolidated nancial statements
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Note 23. Financial debts
2020
Restated
EUR < 1 year > 1 year TOTAL
Loansheldbynancialinstitutions(1)(2) 49,815,810 54,042,900 103,858,710
Shorttermbankloans(4) 4,058,321 0 4,058,321
Otherloans(5) 97,377,694 1,016,331 98,394,025
Lease liabilities 1,623,082 11,081,167 12,704,249
TOTAL 152,874,907 66,140,398 219,015,305
2021
EUR < 1 year > 1 year TOTAL
Loansheldbynancialinstitutions(2)(3) 26,009,954 125,924,854 151,934,808
Shorttermbankloans(4) 7,029,326 0 7,029,326
Other loans 5,394,086 0 5,394,086
Lease liabilities 1,401,018 10,977,780 12,378,798
TOTAL 39,834,384 136,902,634 176,737,018
(1)In2020,thisbalanceincludedashort-termrevolvingcreditfacilityofEUR30millionforwhichin2019theGrouphad
committedtoobtainwithin3yearstheRSPO(RoundtableonSustainablePalmOil)certicationforallitspalmplantations.
The credit facility has been fully reimbursed in 2021
(2)OkomubenetsfrompreferentialrateloansgrantedbytwoState-ownedbanks.AsperIAS20Grants,itisconsideredas
agrantandneedstobereclassied.Thisreclassicationleadstoadecreaseoftheloansoutstandingcapitalandtothe
recognitionofgovernmentgrants,classiedinaccruals,forEUR8.1million.Thesegovernmentgrantswillbeconsumed
overthedurationofeachloangrantedtoOkomu.Forbettercomparison,2020nancialstatementshavebeenrestated
accordingly,foranimpactofEUR8.0million(reclassicationfromloanstoaccruals).
(3)InNovember2021,PNSLtdobtainedaloanofUSD100million.Thisloanhasbeenagreedataoatingrateof3-month
LIBOR+5%,andshouldbefullyreimbursedatthelatestbeforeendofNovember2026(seealsonote32).TheLIBOR,when
notapplicableanymore,willbereplacedbySecuredOvernightFinancingRate(SOFR)
(4)SeealsoNote19
(5)TheEUR80millionbondhasbeenfullyreimbursedin2021,anewloanhasbeensubscribedin2021(seealsoNote32)
MostoftheconsolidatedborrowingsaredenominatedinUSDollarsandinEurosorCFAfrancs(whoseparity
islinkedto theEuro).The xedinterest ratesfromnancialinstitutions andwhicharepegged totheEuro
varybetween5.50%and6.80%.AsexplainedinNote34,interestratemanagementisthesubjectofongoing
management attention.
The Group is in compliance with covenants related to amounts owed to credit institutions.
Consolidated nancial statements
Socn
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81
* Analysis of long-term debt by interest rate
2020
Restated
EUR Fixed Rate Rate Floating rate Rate TOTAL
Loans held by nancial institutions
Switzerland 5,739,678 1.55%to2.65% 0 - 5,739,678
Ivory Coast 11,302,096 5.50%to6.50% 0 - 11,302,096
Nigeria 15,147,321 5.00%to10.00% 0 - 15,147,321
Liberia 2,680,222 7.60% 0 - 2,680,222
Cameroon 7,451,009 5.75%to6.80% 0 - 7,451,009
Ghana 11,374,998 4.00% 0 - 11,374,998
Sao Tomé 347,576 8.00% 0 - 347,576
54,042,900 0 54,042,900
Other loans
Cameroon 1,016,331 6,00% 0 - 1,016,331
1,016,331 0 1,016,331
TOTAL
55,059,231 0 55,059,231
2021
EUR Fixed Rate Rate Floating rate Rate TOTAL
Loans held by nancial institutions
Luxembourg 0 0 78,136,408
3-month LIBOR
+5%(*)
78,136,408
Switzerland 5,498,015 1.55%to2.65% 0 - 5,498,015
Ivory Coast 6,940,137 5.50%to6.50% 0 - 6,940,137
Nigeria 18,203,287 5.00%to10.00% 0 - 18,203,287
Liberia 2,462,387 7.60% 0 - 2,462,387
Cameroon 6,559,619 5.75%to6.80% 0 - 6,559,619
Ghana 8,125,000 4.00% 0 - 8,125,000
TOTAL
47,788,445 78,136,408 125,924,853
(*)TheLIBORshouldbereplacedbySOFRratepriortocessationon3-monthUSDLIBOR.
Consolidated nancial statements
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* Long-term debts analysis by currency
2020
Restated
EUR XAF NGN USD STN KHR GHS CDF CHF TOTAL EUR
Loansheldbynancial
institutions
11,374,998 18,753,105 15,147,321 2,680,222 347,576 0 0 0 5,739,678 54,042,900
Other loans
0
1,016,327 0 4 0 0
0
1,016,331
Lease liabilities
0 6,430,155 444,378 1,071,011
309,269
394,600 46,194 36,835 2,348,725 11,081,167
TOTAL
11,374,998 26,199,587 15,591,699 3,751,237
656,845
394,600 46,194 36,835 8,088,403 66,140,398
2021 EUR XAF NGN USD STN KHR GHS CDF CHF TOTAL EUR
Loansheldbynancial
institutions
8,125,000 13,499,756 18,203,287 80,598,795 0 0 0 0 5,498,015 125,924,853
Lease liabilities
0 6,497,068 271,450 1,707,099 289,187 0 47,996 38,072 2,126,905 10,977,777
TOTAL
8,125,000 19,996,824 18,474,737 82,305,894 289,187 0 47,996 38,072 7,624,920 136,902,630
* Long-term debt analysis by maturity
2020
Restated
EUR 2022 2023 2024 2025
2026 and above
TOTAL
Loansheldbynancialinstitutions
16,772,775 14,763,773 10,294,745 3,990,547 8,221,060 54,042,900
Other loans
1,016,331 0 0 0 0 1,016,331
Lease liabilities
1,122,092 894,364 630,647 393,619 8,040,445 11,081,167
TOTAL
18,911,198 15,658,137 10,925,392 4,384,166 16,261,505 66,140,398
2021
EUR 2023 2024 2025 2026
2027 and above
TOTAL
Loansheldbynancialinstitutions
35,417,051 73,334,985(*) 6,866,072 3,669,989 6,636,756 125,924,853
Lease liabilities
1,182,686 837,648 461,869 421,973 8,073,603 10,977,779
TOTAL
36,599,737 74,172,633 7,327,941 4,091,962 14,710,359 136,902,632
(*)ThereimbursementofPNSLtd’sloancanbeextendedto
endofNovember2026
Consolidated nancial statements
Socn
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83
* Net debt
2021 2020 Restated
EUR EUR
Cash and cash equivalents 143,315,435 58,911,453
Long term debt net of current portion -125,924,855 -55,059,231
Short term debt and current portion of long-term debt -38,433,365 -151,251,825
Lease liabilities -12,378,798 -12,704,249
Net debt -33,421,583 -160,103,852
Cash and cash equivalents 143,315,435 58,911,453
Loanbearinginterestataxedrate -86,221,763 -176,310,926
Loan bearing interest at a variable rate -78,136,456 -30,000,129
Lease liabilities -12,378,798 -12,704,249
Net debt -33,421,582 -160,103,851
* Reconciliation of net debt
Cash and cash
equivalents
Long term debt,
net of current
portion
Short term debt
and current
portion of long
term debt
Debt related to
leases
TOTAL
At 1
st
January 2020 56,069,031 -148,727,610 -84,417,308 -13,339,766 -190,415,653
Cash Flows 7,565,321 -9,506,968 18,508,549 2,382,733 18,949,635
Foreign exchange differences -4,722,899 6,081,175 649,089 412,152 2,419,517
Transfers 0 97,094,173 -85,992,155 0 11,102,019
Othermovementswithnoimpactoncashows 0 0 0 -2,159,375 -2,159,375
At 31
st
December 2020 (*) 58,911,454 -55,059,230 -151,251,826 -12,704,255 -160,103,857
Cash Flows 81,898,296 -91,241,325 140,332,354 1,883,384 132,872,709
Foreign exchange differences 2,889,122 -4,048,159 -804,852 -133,213 -2,097,102
Transfers -215,853 24,423,859 -26,709,044 0 -2,501,038
Scope changes -167,583 0 0 0 -167,583
Othermovementswithnoimpactoncashows 0 0 0 -1,424,723 -1,424,723
At 31
st
December 2021 143,315,436 -125,924,854 -38,433,365 -12,378,807 -33,421,590
(*) Restated
Consolidated nancial statements
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Note 24. Trade and other payables
2021
2020
Restated
EUR EUR
TradeCreditors:Suppliers 32,170,208 31,180,768
Advances received and invoices to be received 12,798,383 12,084,546
Staff cost liabilities 6,727,199 6,194,607
Otherpayables(*) 61,913,522 62,378,921
Accruals(**) 33,468,689 29,098,310
Balance at 31
st
December 147,078,001 140,937,152
Non-current liabilities 7,401,156 7,685,924
Current liabilities 139,676,845 133,251,228
(*) OtherpayablesmainlyconsistofshareholderloansfromSocnafS.A.forEUR40.4million(EUR40.4millionin2020).
See also Note 31.
(**)In2021,OkomuloanshavebeenrestatedtopresenttheeffectofthegrantprovidedbynigerianState-ownedbanks.This
restatementledtoadecreaseoftheloansoutstandingcapitalandtotherecognitionofgovernmentgrants,classiedin
accruals. See note 23 for more information.
Consolidated nancial statements
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Note 25. Financial Instruments
2020
Restated
Loans and
borrowings
Financial
assets at
fair value
through other
comprehensive
income
Other nancial
assets and
liabilities TOTAL
Loans and
borrowings (*)
Other nancial
assets and
liabilities (*)
EUR At cost At fair value At cost At fair value At fair value
Assets
Financial assets at fair value through other
comprehensive income
0 847,018 0 847,018 0 0
Long-term advances 788,521 0 1,054,525 1,843,046 788,521 1,054,525
Other non-current assets 0 0 1,741,740 1,741,740 0 1,741,740
Trade receivables 0 0 34,081,813 34,081,813 0 34,081,813
Other receivables 0 0 14,342,460 14,342,460 0 14,342,460
Cash and cash equivalents 0 0 58,911,453 58,911,453 0 58,911,453
Total Assets 788,521 847,018 110,131,991 111,767,530 788,521 110,131,991
Liabilities
Long-termdebts(**) 55,059,231 0 0 55,059,231 55,061,504 0
Long-term debts related to leases 11,081,167 11,081,167 11,081,167 0
Other non-current liabilities 0 0 7,685,924 7,685,924 0 7,685,924
Short-termdebts(**) 147,193,504 0 4,058,321 151,251,825 147,193,504 4,058,321
Short-term debts related to leases
1,623,082
0 0 1,623,082 1,623,082 0
Tradepayables(current) 0 0 43,265,314 43,265,314 0 43,265,314
Otherpayables(current)(**) 0 0 89,985,914 89,985,914 0 89,985,914
Total Liabilities
214,956,984 0 144,995,473 359,952,457 214,959,257 144,995,473
(*)Forinformationpurposes
(**)SeeNote23
2020
Restated
Fair Value
EUR Level 1 Level 2 Level 3 TOTAL
Financial assets at fair value through other comprehensive income 0 0 847,018
847,018
Consolidated nancial statements
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2021
Loans and
borrowings
Financial
assets at
fair value
through other
comprehensive
income
Other nancial
assets and
liabilities TOTAL
Loans and
borrowings (*)
Other nancial
assets and
liabilities (*)
EUR At cost At fair value At cost At fair value At fair value
Assets
Financial assets at fair value through other
comprehensive income
0 715,578 0 715,578
0
0
Long-term advances 800,426 0 1,058,332 1,858,758
800,426
1,058,332
Other non-current assets 0 0 1,823,796 1,823,796
0
1,823,796
Trade receivables 0 0 42,082,792 42,082,792
0
42,082,792
Other receivables 0 0 10,238,140 10,238,140
0
10,238,140
Cash and cash equivalents 0 0 143,315,435 143,315,435
0
143,315,435
Total Assets
800,426 715,578 198,518,495 200,034,499 800,426 198,518,495
Liabilities
Long-termdebts(**) 125,924,854 0 0 125,924,854
125,928,335
0
Long-term lease liabilities 10,977,779 0 0 10,977,779
10,977,779
0
Other non-current liabilities 0 0 7,401,156 7,401,156
0
7,401,156
Short-termdebts(**) 31,404,040 0 7,029,325 38,433,365
31,404,040
7,029,325
Short-term lease liabilities 1,401,018 0 0 1,401,018
1,401,018
0
Tradepayables(current) 0 0 44,968,591 44,968,591
0
44,968,591
Otherpayables(current)(**) 0 0 94,708,254 94,708,254
0
94,708,254
Total Liabilities
169,707,691 0 154,107,326 323,815,017 169,711,172 154,107,326
(*)Forinformationpurposes
(**)SeeNote23
2021 Fair Value
EUR Level 1 Level 2 Level 3 TOTAL
Financial assets at fair value through other comprehensive income 0 0 715,578
715,578
The management is in the opinion that the carrying value of the loans approximate the fair value.
Consolidated nancial statements
Socn
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Note 26. Staff costs and average number of staff
Average number of employees in the year 2021 2020
Directors 320 309
Employees 6,430 6,444
Workers(includingtemporaryworkers) 28,195 27,081
TOTAL 34,945 33,834
2021
2020
Staff costs EUR EUR
Remuneration 136,691,101 123,564,656
Social security and pension expenses 16,655,185 18,929,690
TOTAL 153,346,286 142,494,346
Note 27. Other nancial income
2021 2020
EUR EUR
On current assets / liabilities
11,620,171 6,154,633
Interest from receivables and cash 257,892 113,143
Forward exchange -509,300 525,198
Exchange gains 8,656,061 4,767,244
Others 3,215,518 749,048
TOTAL
11,620,171
6,154,633
Consolidated nancial statements
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Note 28. Financial expenses
2021 2020
EUR EUR
Interestandnanceexpense 9,033,545 11,530,604
Interest expense on lease liabilities 1,062,744 1,065,813
Realised exchange losses 13,176,294 8,074,626
Unrealised exchange losses -3,357,962 7,571,499
Exchange contracts 950,711 25,944
Impairmentofnancialassets 20,000 2,440,000
Others 2,035,365 2,147,145
TOTAL 22,920,697 32,855,631
Note 29. Net earnings per share
Undilutednetearningspershare(basic)istheprotfortheyearattributabletoordinaryshareholdersdivided
by the average number of ordinary shares outstanding during the year. As there are no potential dilutive
ordinary shares, the diluted net earnings per share is identical to the undiluted net earnings per share.
In accordance with the law of 28
th
July 2014 on the cancellation of bearer shares, 80,280 shares have been
cancelled in 2018. The holders of these shares have not been registered with a depositary as required by law.
To-date,the“CaissedeConsignation”hasnotopenedanyclaim.
2021 2020
Netprotfortheyear(ineuros) 80,389,523 4,705,332
Average number of shares 14,159,720 14,159,720
Net earnings per share undiluted (in euros) 5.68 0.33
Note 30. Dividends and directors’ fees
TheBoardwillproposetotheAnnualGeneralMeetingon31
st
May2022,topayadividendofEUR0.60.
2021 2020
Dividends paid to the owners of the Parent 1,415,972 7,079,860
Average number of shares 14,159,720 14,159,720
Dividend per share distributed during the period 0.10 0.50
Consolidated nancial statements
Socn
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|
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Note 31. Information on related party
* Directors’ remuneration
2021 2020
EUR EUR
Shorttermbenets 7,864,842 7,549,913
Post-employmentbenets 160,333 315,726
* Related party transactions
2021 2020
EUR EUR
Other payables 40,403,288 40,402,186
40,403,288 40,402,186
Transactions between related parties
Financial expenses 1,600,000 1,602,192
Related party transactions are made at arm’s length.
Transactions relating to other related parties are carried out with Bolloré Participations, Palmboomen Cultuur
Maatschappij(Mopoli).
MopoliisaDutchcompanywhichismajorityownedbyGeselnathroughFinancièrePrivéeS.A.,whichalsoowns
Socn.
BolloréParticipationsisashareholderanddirectorofSocnaf.
In2014,SocnafobtainedacashadvanceofEUR35millionfromMopoli.Thisadvancebearsanannualinterest
(netoftax)of4%.Interestispayableinarrearsattheendofeachcalendarquarter.Theamountofinterest
recognised for the year 2021 is EUR 0.8 million. As of 31
st
December 2021, the outstanding balance amounts to
EUR 20.2 million, without maturity date.
In2016,SocnafobtainedaloanofEUR20millionfromBolloréParticipations.Theloanhasanannualinterest
rateof4%.Theamountofinterestrecognisedfortheyear2021isEUR0.8million.Asof31
st
December 2021, the
outstanding balance amounts to EUR 20.2 million and is repayable on June 2023.
Consolidated nancial statements
90
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Note 32. Off balance sheet commitments
In 2019, a subsidiary of Socnaf, Okomu Palm Oil
Company obtained a loan of Naira 10 billion, whose
contract stipulates that Okomu will use as mortgage
guarantee, up to the loan granted, the 11,416 ha
plantation. At 31
st
December 2021, the balance of the
loanamountstoEUR14million(2020:EUR13million).
In 2019,asubsidiary of Socnaf,Agripalma entered
into a credit agreementof Dobra 49 million (EUR 2
million),whosecontractstipulatesthatAgripalmawill
use as mortgage guarantee, up to the loan granted,
the professional facilities and equipment. At 31
st
December 2021, the balance of the loan amounts to
EUR0.5million(2020:EUR1.8million).
In2019,asubsidiaryofSocnaf,PlantationsSocnaf
Ghana(PSG),obtainedaloanofEUR16.5millionforthe
construction of an oil mill. This loan consists of a credit
line of EUR 15 million and a bank overdraft of EUR 1.5
million. The contract stipulates that PSG will use the oil
mill as mortgage guarantee, up to the loan granted. At
31
st
December 2021, the balance of the loan amounts to
EUR 11.4 million (2020: EUR 13 million) and the
overdraftisnil(2020:nil).
In 2021, a subsidiary of Socnaf, Okomu Palm Oil
Company obtained a loan of Naira 2 billion, whose
contract stipulates that Okomu will use as mortgage
guarantee, up to the loan granted, the 11,416 ha
plantation. At 31
st
December 2021, the balance of the
loan amounts to EUR 3 million.
In 2021, PNS Ltd obtained a loan of USD 100 million
which stipulates that as long as the loan remains
outstanding, PNS Ltd may not provide any guarantee
or provision of any other security or arrangement to
other creditors without granting them on the same
terms to the bank. PNS Ltd also opened a reserve
account with enough funds to service principal and
interestdueintherst12months.Inaddition,100%
of PNS Ltd shares, owned by Socnasia, have been
pledged to the bank under this loan. The contract also
stipulates that a change of control in PNS Ltd’s or in
the Company’s shareholding would result in the early
repayment of the loan.
Note 33. Segment information
In accordance with IFRS 8, the information analysed by
management is based on the geographical distribution
of political and economic risks. As a result, the
sectors presented are Europe, Sierra Leone, Liberia,
Ivory Coast, Ghana, Nigeria, Cameroon, São Tomé and
Principe,Congo(DRC),CambodiaandIndonesia.
Products from the Ivory Coast, Nigeria, Cameroon and
Indonesia operating sectors come from palm oil and
rubber sales, those from the Liberia and Cambodia
sectors only from rubber sales, those from Sierra
Leone, Ghana, São Tomé and Principe and Congo come
solely from sales of palm oil. Those in the Europe
segment come from the provision of administrative
services, assistance in managing the areas under
plantation and the marketing of products outside the
Group.ThesegmentresultoftheGroupistheprot
from operations.
Thestated guresoriginatefrominternal reporting.
They do not include any consolidation or IFRS
adjustments or restatements and are therefore not
directly comparable to amounts reported in the
consolidated statement of nancial position and
income statement.
Consolidated nancial statements
Socn
|
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|
91
* Segmental breakdown of prot / (loss) at 31
st
December 2020 (Restated)
EUR
Revenue from
ordinary business
with external
customers
Revenue from
ordinary business
between segments
Sector prot / (loss)
(*)
Europe 79,138,623 33,938,413 -710,758
Sierra Leone 15,103,389 86,071
Liberia 29,152,353 -1,903,422
Ivory Coast 139,457,865 69,616 22,172,685
Ghana 12,791,521 497,660
Nigeria 57,577,422 20,899,568
Cameroon 129,865,123 27,179,273
São Tomé and Principe 3,828,024 -1,968,998
Congo(DRC) 12,050,148 -125,900
Cambodia 5,165,870 -1,157,165
Indonesia 121,195,793 158,388 49,023,412
TOTAL
605,326,130 34,166,417 113,992,426
Elimination of revenue from intra-group activities -34,166,399
Depreciation, amortisation and impairment of bearer plants -10,557,262
Fair value of agricultural production -9,267,399
Other IFRS adjustments -2,306,281
Consolidationadjustments(intra-groupandothers) 30,385,113
Financial income 6,349,308
Financial expenses -33,973,066
Income tax expense -31,144,898
Net prot for the period
29,311,542
(*)Prot/(loss)fortheperiodincludeoperatingexpenses.
Consolidated nancial statements
92
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* Segmental breakdown of prot / (loss) at 31
st
December 2021
EUR
Revenue from
ordinary business
with external
customers
Revenue from
ordinary business
between segments
Sector prot / (loss)
(*)
Europe 142,849,707 35,576,448 9,055,878
Sierra Leone 46,760,015 19,240,229
Liberia 36,783,462 5,538,511
Ivory Coast 176,301,160 69,873 37,488,425
Ghana 26,377,673 13,096,295
Nigeria 79,363,158 34,174,303
Cameroon 143,222,868 33,644,277
São Tomé and Principe 4,776,845 -1,691,862
Congo(DRC) 13,117,259 -2,058,986
Cambodia 7,935,361 988,373
Indonesia 160,157,062 94,373 82,976,153
TOTAL
837,644,570 35,740,693 232,451,598
Elimination of revenue from intra-group activities -35,740,693
Depreciation, amortisation and impairment of bearer plants 1,417,866
Fair value of agricultural production 6,821,496
Other IFRS adjustments 1,161,838
Consolidationadjustments(intra-groupandothers) 29,221,565
Financial income 11,822,872
Financial expenses -26,234,642
Income tax expense -54,378,975
Net prot for the period
166,542,925
(*)Prot/(loss)fortheperiodincludeoperatingexpenses.
Consolidated nancial statements
Socn
|
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|
93
* Total segmental assets
2021
2020
Restated
EUR EUR
Europe 155,140,042 89,778,487
Sierra Leone 132,030,565 123,527,792
Liberia 115,585,545 102,262,020
Ivory Coast 170,140,614 154,069,516
Ghana 78,724,410 72,516,210
Nigeria 139,257,028 116,371,568
Cameroon 175,101,980 181,476,829
São Tomé and Principe 27,822,826 28,473,478
Congo(DRC) 68,664,450 52,212,694
Cambodia 68,843,348 64,305,823
Indonesia 127,714,996 106,618,394
Total at 31
st
December
1,259,025,805 1,091,612,811
IFRS3/IAS16:Bearerplants
-28,557,894 -30,217,399
IAS2/IAS41:Agriculturalproduction 6,243,749 2,727,773
Other IFRS adjustments -9,048,166 -7,145,649
Consolidationadjustments(intra-groupandothers) -115,097,075 -89,605,454
Total consolidated segmental assets 1,112,566,419 967,372,083
Consolidated assets not included in segment assets
Goodwill
4,951,057 4,951,057
Right-of-use assets 10,505,511 10,967,008
Financial assets at fair value through other comprehensive income 715,578 847,018
Long-term advances 1,858,758 1,843,047
Deferred tax
19,434,382 14,640,683
Other non-current assets 1,823,796 1,741,739
Consolidated non-current assets 39,289,082 34,990,552
Other debtors 10,238,140 14,342,463
Current tax assets 15,291,971 14,317,805
Consolidated current assets 25,530,111 28,660,268
Total of consolidated assets in the segmental assets 64,819,193 63,650,820
Total assets 1,177,385,612 1,031,022,903
Segmental assets are not part of internal reporting,
they are included to meet the requirements of IFRS 8.
They include xed assets, biological assets, trade
receivables, inventories, cash and cash equivalents.
They do not include any consolidation or IFRS
adjustments.
Segmental liabilities include only trade payables and
other payables.
Consolidated nancial statements
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* Total segmental liabilities
2021
2020
Restated
EUR EUR
Europe 130,502,649 138,126,998
Sierra Leone 1,538,755 6,196,387
Liberia 15,247,453 14,540,668
Ivory Coast 17,484,516 16,466,701
Ghana 972,502 912,473
Nigeria 9,223,850 9,559,988
Cameroon 25,172,132 23,304,992
São Tomé and Principe 3,468,418 2,382,716
Congo(DRC) 3,650,948 2,689,124
Cambodia 1,154,105 890,695
Indonesia 23,690,765 19,292,109
Total at 31
st
December
232,106,092 234,362,851
Other IFRS adjustments
48,895 -52,269
Consolidationadjustments(intra-groupandothers) -92,478,141 -101,059,356
Total consolidated segmental liabilities 139,676,845 133,251,227
Consolidated liabilities not included in segment liabilities
Total equity
736,910,826 575,797,694
Non-current liabilities 212,253,585 136,146,905
Currentnancialdebts 38,433,365 151,251,825
Current lease liabilities 1,401,018 1,623,082
Current tax liabilities
48,328,464 32,208,682
Provisions 381,506 743,488
Total consolidated liabilities not included in segment liabilities 1,037,708,764 897,771,676
Total equity and liabilities 1,177,385,609 1,031,022,902
Consolidated nancial statements
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* Costs incurred for acquisition of segmental assets during 2020 (Restated)
EUR
Intangible
assets
Tangible
assets
Investment
properties
Biological
assets TOTAL
Europe 10,933 1,929,038 3,555 0 1,943,526
Sierra Leone 0 7,668,557 0 210,174 7,878,731
Liberia 0 1,113,036 0 4,261,794 5,374,830
Ivory Coast 2,561 7,071,684 0 2,746,614 9,820,859
Ghana 0 515,525 0 521,316 1,036,840
Nigeria 0 17,153,521 0 5,046,892 22,200,413
Cameroun 134,582 12,066,580 0 2,935,090 15,136,251
São Tomé et Principe 0 68,175 0 0 68,175
Congo(DRC) 0 1,222,201 0 0 1,222,201
Cambodia 0 483,274 0 1,064,256 1,547,530
Indonesia 17,885 4,421,120 0 6,716,707 11,155,713
TOTAL
165,961 53,712,711 3,555 23,502,842 77,385,069
* Costs incurred for acquisition of segmental assets during 2021
EUR
Intangible
assets
Tangible
assets
Investment
properties
Biological
assets TOTAL
Europe 6,670 179,922 36,504 0 223,096
Sierra Leone 0 2,207,733 0 0 2,207,733
Liberia 0 1,613,464 0 3,808,942 5,422,406
Ivory Coast 3,666 6,125,172 0 4,144,678 10,273,516
Ghana 0 1,978,271 0 137,231 2,115,502
Nigeria 0 27,082,944 0 1,632,191 28,715,135
Cameroun 0 9,974,210 0 3,177,201 13,151,411
São Tomé et Principe 0 256,352 0 0 256,352
Congo(DRC) 0 781,126 0 0 781,126
Cambodia 0 436,270 0 859,167 1,295,438
Indonesia 658,565 4,258,034 0 4,914,771 9,831,370
TOTAL
668,902 54,893,499 36,504 18,674,180 74,273,085
Consolidated nancial statements
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* Information by sector of activity
Revenuefromexternalcustomers:
2021
2020
Restated
EUR EUR
Palm 471,225,684 346,526,757
Rubber 233,974,853 182,697,075
Other agricultural activities 5,607,086 4,464,319
Trading activities 118,572,588 64,494,381
Others 8,264,358 7,143,598
TOTAL
837,644,570 605,326,130
* Information by geographical region
Revenuefromexternalcustomersbyoriginandgeographicallocation:
EUR
2020
Restated
Geographical
location
Origin Europe Africa Asia America TOTAL
Europe 2,473,306 1,734,617 3,087,370 794,645 8,089,938
Africa 27,605,251 240,392,008 194,542,929 8,801,844 471,342,032
Asia 6,786,875 5,323,781 110,994,202 2,789,302 125,894,160
TOTAL
36,865,433 247,450,405 308,624,501 12,385,792 605,326,130
EUR
2021
Geographical
location
Origin Europe Africa Asia America Oceania TOTAL
Europe 4,178,220 2,207,994 794,752 0 0 7,180,966
Africa 56,244,615 307,777,744 277,729,299 23,343,369 0 665,095,027
Asia 6,351,240 9,166,449 148,817,865 1,030,279 2,742 165,368,575
TOTAL
66,774,075 319,152,187 427,341,915 24,373,648 2,742 837,644,569
Consolidated nancial statements
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* Information by business segment and revenue category
Revenuefromexternalcustomersbybusinesssegmentandgeographicalarea:
EUR
2020
Restated
Category
Business Segment
Palm Rubber
Other
agricultural
products
Service
and other
commercial
business TOTAL
Sierra Leone 14,445,401 657,988 15,103,389
Liberia 29,152,353 29,152,353
Ivory Coast 25,184,319 111,922,781 2,350,765 139,457,865
Ghana 12,701,391 90,130 12,791,521
Nigeria 50,010,800 7,387,999 178,623 57,577,422
Cameroon 123,187,430 5,425,851 678,970 572,871 129,865,123
São Tomé and Principe 3,828,024 3,828,024
Congo(DRC) 12,050,148 0 0 0 12,050,148
Indonesia 104,521,962 12,888,483 3,785,349 0 121,195,793
Cambodia 0 5,165,870 0 0 5,165,870
Europe 597,283 10,753,739 67,787,601 79,138,622
TOTAL
346,526,757 182,697,076 4,464,319 71,637,978 605,326,129
EUR
2021
Category
Business Segment
Palm Rubber
Other
agricultural
products
Service
and other
commercial
business TOTAL
Sierra Leone 46,760,015 0 0 46,760,015
Liberia 0 36,783,462 0 36,783,462
Ivory Coast 30,383,586 143,723,806 2,193,768 176,301,160
Ghana 25,714,194 391,733 271,746 26,377,673
Nigeria 67,439,332 11,787,948 135,878 79,363,158
Cameroon 130,353,234 12,176,882 393,932 298,821 143,222,868
São Tomé and Principe 4,776,845 0 0 4,776,845
Congo(DRC) 13,117,259 0 0 0 13,117,259
Indonesia 137,718,617 16,041,901 5,213,154 1,183,389 160,157,062
Cambodia 0 7,935,361 0 0 7,935,361
Europe 14,962,599 5,133,761 122,753,347 142,849,707
TOTAL
471,225,681 233,974,854 5,607,086 126,836,949 837,644,570
Consolidated nancial statements
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Note 34. Risk management
Capital management
The Group manages its capital and adjusts accordingly
in response to changes in economic conditions and
investment opportunities. To maintain or adjust the
capital structure, the Group may issue new shares,
repay part of the capital or adjust the payment of
dividends to shareholders.
The Group also manages its capital by close monitoring
of the ratio of debt over equity.
Financial risk
ThenancialriskforthecompanieswithintheGroup
comes mainly from changes in the selling price of
agricultural commodities, foreign exchange and to a
lesser extent, interest rate movements.
Potential risk
None of the countries in which the Group operates
has a hyperinationary economy or suffers from an
immediate threat of price devaluation. Nevertheless,
in a minority of countries in which the Group operates,
the political system and economic stability remain
fragile and could lead to currency devaluation or
hyperination.
Risk management and opportunities
The Groupregularly reviewsits sources ofnancing
as well as currency movements and its decisions are
based on a variety of risks and opportunities which are
themselves based on several factors including interest
rates, currency and counterparties.
Market risk
* Price risk in commodities market
Potential risk
The Group markets its nished products at prices
which may be inuenced by commodity prices in
international markets. It therefore faces the risk of
volatility in the prices of these commodities.
Risk management and opportunities
The main policy of the Group’s companies has always
been to control its production costs in order to
generate margins for the viability of structures in the
eventofasignicantdropinthesellingpricesofraw
materials and conversely to generate protmargins
during the market downturns.
In parallel with this main policy, secondary policies
have also been implemented to improve or consolidate
protmargins:
- production of agricultural products of superior
qualityandbranded,inparticularforrubberand;
- use of the Group’s expertise in the commercial
sector.
The Group reduces its exposure to price risk by
investing into different geographical markets and
products.
* Foreign currency risk
Potential risk
The Group carries out transactions in local currencies,
mainly being US dollar, Nigerian naira and Indonesian
rupiah. In addition, nancial instruments hedging
against exchange rate uctuations may not be
available for certain currencies. This creates exposure
to exchange rate uctuations which may have an
impactonthenancialresultdenominatedineuro.
Risk management and opportunities
Apart from the current currency hedging instruments
foroperationaltransactions(whichremainrelatively
limited) the main policy of the Group is to nance
its development projects in local currencies in the
region given the signicant investments made in
the plantations and wherever possible, to reduce
borrowings.
Consolidated nancial statements
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* Interest rate risk
Potential risk
Thisrisk includesachangeincash owsrelating to
short-termborrowings(oftenonavariablerate)and
the relatively high level of base interest rates on cash
and cash equivalents and developing markets when
borrowing in local currency.
Risk management and opportunities
Therstriskisputundercontrolbyanactivepolicyof
monitoringtheevolutionoflocalnancialmarketsand
sometimes short-term debt consolidation in the long
term, if necessary. The second risk is considered by
a systematic policy of putting local and international
banks in competition with international lenders
who can offer real investment and development
opportunities at attractive rates.
Credit risk
Potential risk
Credit risk arises from the potential inability of clients
to meet their contractual obligations.
Risk management and opportunities
To manage this risk, the Group ensures the payment of
local sales in cash or the guarantee of the receivables
by obtaining approved bills of exchange. The export
sales of the plantations are centralised in the Group’s
sales structure, which applies either a cash payment
policy or a commercial credit policy whose limits are
denedbyitsBoardofDirectors.
Detailsonimpairmentofnancialassetsandliabilities,
including measurement of expected credit losses, are
disclosed in note 1.19.
Liquidity risk
Potential risk
Liquidity risk is dened as the risk that the Group
cannot meet its obligations on time or at a reasonable
price. This risk is mainly impacting plantations which
areboththemainsourceofcashandnancingneeds.
Risk management and opportunities
Given the specic economic and technological
environment of each plantation, the Group manages
this risk in a decentralised manner. However, both
the cash available and the implementation of the
nancingaresupervisedbytheGroupmanagement.
The Group chooses, whenever possible, to maintain
nancial liabilities and cash position (as mentioned
respectivelyinnotes23and19)withlowcreditrisk
institutions.
Emerging market risks
Potential risk
Current or future political instability in certain
countries in which the Group operates may affect the
ability to do business, generate revenue and impact
theGroup’sprotability.
The political system in some of the Group’s markets
remains relatively fragile and remains potentially
threatenedbycross-borderconictsorwarsbetween
rival groups.
Risk management and opportunities
The Group’s activities contribute to improve the
quality of life in the countries in which the Group
operates while improving the stability of its markets
may lead to an appreciation of the value of the
Group’s companies located locally.
Diversifying the geographic mix of countries,
economies and currencies in which the Group
generates its revenues and cash ows reduces its
exposure to emerging market risk.
The Group is aware of the environmental and social
responsibility it has towards the local population and
is implementing initiatives to this end.
Risk of expropriation
Potential risk
Certain countries in which the Group operates have
political regimes that may call into question foreign
commercial interests by limiting their activities and
may attempt to impose control over the Group’s assets.
Consolidated nancial statements
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Risk management and opportunities
The diversication of the geographical distribution
of the countries in which the Group generates its
revenues and its cash ows reduces itsexposureto
this risk.
Credibility risk
Potential risk
TheGroupisexposedtotheriskoflossofcondence
of the nancial markets in relation to its ability to
maintainasoundnancialhealthconsidering:
- its environmental impact,
- its social responsibility and
- the economic and geopolitical risks that certain
Group entities may face.
Risk management and opportunities
The Group has published its responsible management
policy in 2017, updated in 2022. This complements
the Group’s sustainable development commitments,
formalised in 2012.
The Group’s initiatives to take this risk into account
are detailed in the information provided in the annual
sustainable development report available on request
at Group headquarters.
Risk sensitivity
* Exchange rate risk
The Group is exposed to changes in value arising
fromuctuationsinexchangeratesgeneratedbyits
operating activities. However, as local turnover were
made in the local currency and export sales are made
in US dollar, the Group’s exposure is mainly limited to
uctuationsindollaragainsttheeuro.Theimpacton
theresultofa5%increaseordecrease(EUR/USD)in
foreigncurrencynancialinstrumentsamountstoEUR
2.5 million.
In the case where the currency of sale is not the
functional currency of the company, and it is linked
to a strong currency, the conversion is ensured at the
time of the conclusion of the contract. The local sales
concluded in the local currency in 2021 (including
US dollars) amounted to EUR 456.5 million. The
globalsales(mainlyconcludedinUSdollars)in2021
amounted to EUR 381.1 million.
PTSocndohasacashpositionofUSD1.1million.
* Interest rate risk
Thebreakdownofxedrateloansandvariablerate
loans is described in Note 23. Following the variable
rate loan arrangement entered into by PNS Ltd in
November 2021, the Group is exposed to interest rate
risk. To control this risk, the management closely
monitors the interests rate evolution.
* Credit risk
At 31
st
December 2021, the trade receivables from
global customers and local customers amounted to
EUR 21.0 million and EUR 25.1 million respectively.
Accounts receivable from global customers are
mainly receivables related to the sale of rubber. Raw
palm oil is sold locally to local players (wide range
ofcustomers).Themarketingofrenedpalmoiland
rubber is entrusted to Sogescol FR. It trades either on
the physical markets or directly with end customers.
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Consolidated nancial statements
2021 2020
EUR EUR
Trade receivables 46,089,287 38,038,835
Provision incurred mainly on non operational receivables -4,006,494 -3,957,022
Other receivables 10,238,137 14,342,460
Total net receivables 52,320,930 48,424,273
Amount not due 51,464,658 47,255,163
Amountduelessthan6months 68,122 579,734
Amountdueformorethan6monthsandlessthanoneyear 760,051 396,725
Amount due for more than one year 28,099 192,651
Total net receivables 52,320,930 48,424,273
Note 35. Contingent liabilities
1. Litigation against the Belgian Federal Public Service
Finance(CorporateTax)
The company SOCFICOM S.A. (“Soccom”), a public
limited company incorporated under Liechtenstein
law and a subsidiary of the Group, was the subject of
criminal proceedings initiated by the Belgian Public
Prosecutor’sOfce.
The main accusation against Soccom was that the
Belgian Public Prosecutor’s Ofce considered that
Soccomwasa“Belgianresidentcompany”,subject
to Belgian corporate income tax.
Soccomwasacquitted,followingarulingbythe11
th
Chamber of the Brussels Court of Appeal, sitting in
correctional matters, dated 23
rd
October 2018. The
Court ruled that “it is clear from all these elements
thattherealseatofthedefendantSoccomisindeed
established in Liechtenstein and that nothing allows
ittobelocatedinBrussels”.ThePublicProsecutor’s
Ofcedidnotappealagainstthisjudgementandthis
decisionisthereforenal.
However, the Federal Public Service Finance, relying
itself exclusively on theinvestigationle submitted
bytheBelgian PublicProsecutor’sOfce incriminal
matters,maintainsthatSoccommeetstheconditions
for it to be liable to corporate income tax in Belgium
(the Federal Public Service Finance considers that
Soccom is effectively managed from Belgium and
thatallitsactivitieswerecarriedoutthere).
Soccom was therefore automatically assessed with
corporate income tax, on 4
th
January 2012, for the tax
years2004to2009foranamountofEUR77,343,783
excluding late payment interest at an annual rate of
7%reducedto4%asfrom1
st
January 2018.
On 5
th
April2013, Soccomled atax claimagainst
these 6 ex ofcio tax assessments. These 6 claims
were declared admissible, but were rejected.
Soccom led an action before the “Tribunal de
premièreinstancefrancophone”ofBrussels.
The“Tribunaldepremièreinstancefrancophone”of
Brussels,byjudgementdated26
th
April 2019, declared
the claim admissible and partially founded insofar as
it ordered the partial relief of the disputed taxes.
Soccomconsidersthatthisdecision,althoughpartly
favourable to the argument it defended before the
Court, is not satisfactory, given the acquittal decision
referred to above.
ThetaxauthoritieswanttotaxSoccomexclusively
onthebasisofthe elementsof thecriminal le,as
the tax le does not contain any “new claims” in
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relation to the criminal proceedings. The facts judged
in the tax proceedings have already been decided by
the Court of Appeal (correctional chamber) which
acquittedSoccomandtheotherdefendants.
TheCourtcouldthereforenotagreewiththetaxofce
onthe basisofdocuments, observationsorndings,
without taking into considerations the judgement of
the Court of Appeal of 23
rd
October 2018. The Brussels
Tax Courthas“re-heard” the criminal caseignoring
the acquittal of the 11
th
Chamber of the Brussels Court
of Appeal.
Soccomhasthereforedecidedtoappealagainstthe
tax judgement in order to request that the Court grants
the request initially formulated by the company, i.e.
to order the complete cancellation of the relief of the
disputed taxes.
Tax judgements that are appealed against are not
enforceable until the Court has ruled on them.
The amounts initially claimed by the tax authorities
fromSoccomamountedtoEUR77,343,783,excluding
interest(seeabove),fromwhichitmustbededucted
the relief granted by the Court amounting to EUR
50,000,000.
The company’s counsel and Group management are
of the opinion that the Court of Appeal should fully
cancel these taxes, based on the acquittal decision
of the Court of Appeal, Correctional Chamber, dated
23
rd
October2018whichconrms:“thattherealseat
of the defendant Soccom is indeed established in
Liechtenstein and that there is no reason to locate it in
Brussels”.Basedontheseelements,themanagement
is of the opinion that no provision should be recorded
astheprobabilityofanoutowofnancialresources
bytheGroupislow.ThendingsoftheCourtofAppeal
are not expected before 2024.
2. Litigation against the Belgian Federal Public
ServiceFinance(VAT)
As described above, the Federal Public Service
FinancemaintainsthatSoccomisaBelgianresident
company.ThetaxauthoritiesareclaimingVATofEUR
3,054,160.15fortheyears2006,2007,2008and2009,
addingtothistaxnesandinterestatarateof0.8%
per month as from 20
th
January 2010.
TheamountsclaimedamounttoEUR10,310,844.61,
splitasfollows:
-EUR3,054,160forVAT
-EUR1,148,364ininterest
-EUR6,108,320innes
- plus interest for late payment to be calculated on
theVATduefrom21
st
December 2013.
SoccomcontestedthistaxbeforetheBrusselsCourt
of First Instance.
The Court declared the claim admissible and
partially founded insofar as it cancelled the nes
of EUR 6,108,320 and the interest charged on this
amount.
Soccom considers that this decision, although
partially favorable to the case it defended before
the Court, is not satisfactory since it was granted the
acquittal following the judgement rendered by the
11
th
Chamber of the Brussels Court of Appeal dated
23
rd
October 2018.
InordertoclaimthedisputedVATfromSoccom,the
tax authorities based themselves exclusively on the
criminal le. However, the Brussels Court couldnot
ignorethe acquittaldecision andcondemnSoccom
withouttakingintoaccountthenalandresjudicata
judgement of the Brussels Court of Appeal.
In the absence of new elements brought by the tax
authorities and having an impact on the outcome
of the trial, the decision of the Court of Appeal of
23
rd
October 2018 could not be challenged and is
binding on the Court.
Soccomthereforedecidedtoappealthetaxrulingin
order to request that the Court to grant the request
initially made by the company, i.e. to order a tax
relief for the disputed taxes.
The company’s counsel and the Group’s management
are of the opinion that the Court of Appeal should fully
cancel these taxes, based on the acquittal decision
of the Court of Appeal, Correctional Chamber, dated
23
rd
October2018,whichconrms:“thattherealseat
of the defendant Soccom is indeed established in
Liechtenstein and that there is no reason to locate it
inBrussels”.Basedontheseelements,managementis
of the opinion that no provision should be recorded as
theprobabilityofanoutowofnancialresourcesby
Consolidated nancial statements
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theGroupislow.ThendingsoftheCourtofAppeal
are not expected before 2024.
3. Claim against “Caisse Nationale de Prévoyance
Sociale”
SociétédesCaoutchoucsduGrandBereby(“SOGB”),
a public limited company incorporated under Ivorian
law and subsidiary of the Group, is involved in a
dispute with the Caisse Nationale de Prévoyance
Sociale (“CNPS”) of the Ivory Coast. This dispute
concerns the tax audit of the benets in kind that
SOGB should have paid to CNPS for having provided
housing to its employees.
Following an initial analysis for the period from
1
st
January 2010 to 31
st
December 2013, CNPS estimated
an amount due of CFA 182 million, equivalent to
EUR277,000.BasedonSOGB’scalculations,theamount
owed is CFA 32 million, equivalent to EUR 48,000.
Following a contestation, the case was brought
before the Court of Sassandra. The latter invited the
two parties to reach an amicable settlement of the
dispute between them and to submit a transactional
agreement, if necessary.
In the absence of an amicable settlement of the
dispute, it would be up to the Sassandra Court to rule
on the merits.
The CNPS carried out a second analysis covering
the years 2014 through 2018. The CNPS added to
the previous amount a sum of CFA 1,650 million,
equivalent to EUR 2.5 million. The SOGB has recorded
a provision of CFA 250 million, equivalent to EUR
381,000, which corresponds to the amount it considers
to be effectively due.
The issue of housing on plantations in rural areas is
a general one and concerns most agricultural and
forestry companies, particularly those in the rubber,
oil palm and banana sectors.
For this reason, actions have been taken by companies
in the sector, supported by the Union of Agricultural
andForestryCompanies(“UNEMAF”)andtheGeneral
ConfederationofCompaniesofIvoryCoast(“CGECI”),
to obtain a clear position from the CNPS on this issue.
The CNPS had always granted a tolerance concerning
thedeterminationofbenets inkindconstitutedby
the provision of housing in rural areas.
A proposal for arbitration was submitted to the
Ministry of Employment and Social Protection by a
working group comprising members of CGECI and
UNEMAF. Working group meetings were scheduled
to take place in the course of 2020, but these were
postponed due to the health situation and have not
been resumed to date.
At the date of the closing of the accounts, the
amicable procedure is therefore still in progress. Its
outcome will determine whether or not the case is
referred to the Sassandra Court, which alone has the
power to enforce the parties. Insofar as there is no
legal constraint to date, and based on the above,
management is of the opinion that no provision should
be recorded because the probability of a claim is very
low.
Note 36. Political and economic environment
The Group holds interests in subsidiaries that operate
indirectly in Africa and South-East Asia.
Given the economic and political instability in some of
these countries, these holdings pose a risk in terms of
exposure to political and economic changes.
Note 37. Events after the closing date
Russia – Ukrain conict
In February 2022, a number of countries (including
theUS,UKandEU)imposedsanctionsagainstcertain
entities and individuals in Russia as a result of the
ofcialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Announcements of potential additional sanctions have
been made following military operations initiated by
Russia against the Ukraine on 24
th
February 2022.
Due to the growing geopolitical tensions, since
February2022,therehasbeenasignicantincrease
in volatility on the securities and currency markets, as
Consolidated nancial statements
Consolidated nancial statements
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wellasasignicantdepreciationoftherubleagainst
the US dollar and the euro. It is expected that these
events may affect the activities of Russian enterprises
in various sectors of the economy.
The Group regards these events as non-adjusting
events after the reporting period.
Although neither the company’s performance and
going concern nor operations, at the date of this
report, have been signicantly impacted by the
above, the Board of Directors continues to monitor
theevolvingsituationanditsimpactonthenancial
position and results of the company.
Early partial repayment of loan
As of 25
th
February 2022, Socn prepaid an amount
ofUSD25,000,000i.e.EUR22,409,466ofitsdebtto
PNS Ltd.
PNS Ltd itself repaid early an amount of USD
25,000,000 of its bank loan.
Note 38. Auditor’s fees
2021 2020
EUR EUR
Audit(VATincluded)
1,387,989 735,695
The audit fees include all fees paid to the independent statutory auditor of the Group namely EY as well as those
paidtomemberrmswithinEYnetworkfortherelevantyears.Noconsultingworkorothernon-auditservices
havebeenperformedbythisrmin2021orin2020.
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Company’s Management Report
Presented by the Board of Directors at the Annual General Meeting of 31
st
May 2022
Ladies and gentlemen,
We are pleased to present our annual report and to submit for your approval the annual accounts of our company
as at 31
st
December 2021.
Activities
SocnmainlyholdsnancialinterestsinportfoliocompanieswhichoperateindirectlyinSoutheastAsiaand/or
tropical Africa in the rubber and palm oil sectors.
Result of the year
Theprotandlossaccountfortheyear,comparedtothatofthepreviousyear,isasfollows:
(EUR millions) 2021 2020
INCOME
Income from participating interests
fromafliatedundertakings
Dividends
10.3 9.1
Interest on receivables
4.9 5.8
15.2 14.9
Income from current assets
1.4 0.0
Total income
16.6 14.9
EXPENSES
Other external charges
1.6 1.4
Interest payable and similar expenses
other interest and similar expenses
4.9 4.8
Total expenses
6.5 6.2
PROFIT FOR THE FINANCIAL YEAR
10.1 8.7
At 31
st
December2021,netprotamountedtoEUR10.1millioncomparedtoEUR8.7millionattheendofthe
previous year.
RevenueamountedtoEUR16.6million(EUR14.9millionat31
st
December2020).
TotalexpensesamountedtoEUR6.5millioncomparedtoEUR6.2millionat31
st
December 2020.
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Balance sheet
At 31
st
December2021,Socn’stotalassetsamounted
toEUR383.7millioncomparedtoEUR313.6millionat
31
st
December 2020.
Socn’s assets consist of investments of EUR 186.4
million, xed nancial assets of EUR 187.1 million,
and other debtors of EUR 10.3 million.
EquityamountedtoEUR196million.
Porfolio
Movements
During the nancial year 2021, Socn sold 1 share
PlantationNord-SumatraLtdtoSocnasia.
Revaluations
At 31
st
December 2021, the unrealised capital
gains on the investment portfolio are estimated at
EUR 95.7 million compared to EUR 107.2 million in
previous year.
Holdings
The main holdings have evolved as follows during the
lastmonths:
Socnasia S.A. (Luxembourg) - 58.09%
The company holds stakes in Southeast Asian
companies active in the rubber and palm oil sector.
At 31
st
December2021,netprotamountedtoEUR45
million compared to EUR 32.1 million at 31
st
December
2020.
ThenetvalueofSocnasia’sinvestmentsamounted
to EUR 289.8 million at 31
st
December 2021 and the
valuation of the portfolio shows unrealised gains of
EUR 88.3 million.
AtthenextGeneralMeeting,theBoardofDirectorsof
Socnasiawillproposethepaymentofanaldividend
of EUR 1.00 per share, an interim dividend of EUR 0.40
has already been distributed in November 2021.
2021 2020
Figures of Socnasia (EUR million)
Assets
451.9 425.5
Fixed assets
410.5 314.5
Current assets
41.4 111.0
Equity and Liabilities
451.9 425.5
Equity
446.8 421.4
Liabilities
5.1 4.1
Socnaf S.A. (Luxembourg) – 64.51%
This company has interests in entities in tropical Africa
which are active in the rubber and palm oil sector.
At 31
st
December2021,netprotamountedtoEUR6.5
millioncomparedtoanetlossofEUR28.6millionat
31
st
December 2020. This last result was impacted
by the non-recurrent impairment which has been
accounted on the investment in SRC and Brabanta.
Company’s Management Report
Socn
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107
ThenetassetvalueofnancialassetsamountedtoEUR199.5millionat31
st
December 2021 and the valuation
of the portfolio generated unrealised gains of EUR 303.5 million.
TheBoardofDirectorsofSocnafwillproposeatthenextGeneralMeetingnottopayadividendforthenancial
year 2021.
2021 2020
Figures of Socnaf (EUR million)
Assets
499.2 518.1
Fixed assets
469.1 513.3
Current assets
30.1 4.8
Liabilities
499.2 518.1
Equity
258.8 252.3
Liability
240.4 265.8
Allocation of prot
TheprotfortheyearforSocnamountingtoEUR10,068,154.41increasedbytheretainedearningsof
EUR 102,447,638.68 result in total earnings of EUR 112,515,793.09whichitisproposedtoallocateasfollows:
Earnings allocation
EUR
Retained earnings 103,075,979.76
Fromthebalance:
10%totheBoardofDirectors
943,981.33
90%to14,159,720shares
8,495,832.00
representingEUR0.60pershareofwhichEUR0.10alreadypaidonNovember2021
112,515,793.09
Reserves
Afterthisdistributionofprot,allreserveswillamounttoEUR162,831,611.91andwillbeasfollows:
EUR
Legal reserve 2,477,951.00
Other reserves 57,277,681.15
Retained earnings 103,075,979.76
162,831,611.91
Ifthisdistributionisapproved,CouponNr.80ofEUR0.50willbedeclaredon7
th
June 2022 and will be payable
as from 9
th
June 2022.
Company’s Management Report
108
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Socn
Treasury shares
Thecompanydidnotbuybackitsownsharesduringthe2021nancialyear.
Research and development
Duringthenancialyear2021,Socndidnotincuranyexpensesforresearchanddevelopment.
Financial instruments
Financialriskmanagementpoliciesaredescribedinthenotestothecompany’sconsolidatednancialstatements.
Branch
The company has a permanent establishment in
Fribourg(CH).
Mentions required by Art. 11 (1) points a) to k)
of the law of 19
th
May 2006 concerning Public
Takeover Bids
a)b)f)ThesubscribedsharecapitaloftheCompanyis
setatEUR24,779,510representedby14,159,720
shares without par value, fully paid up. Each share
entitles the holder to one vote without limitation
or restriction.
c) On 02/01/2017, Mr. Hubert Fabri declared that
it held a direct and indirect stake of 54.24% in
Socn.
On 29/10/2021, Bolloré Participations SE declared
thatitheldadirectandindirectinterestof39.75%
intheSocn.
h) Art. 14. of the Articles: “The company is
administered by a Board composed of at least
three members, whether natural or legal persons.
The Directors are appointed for a period of six
years by the General Meeting of Shareholders.
They are eligible for re-election. The Directors
are renewed by lottery, so that at least one
Director will be leaving each year.”
Art.23.oftheArticles:“In the event of vacancy
of one or more Director’s seat, it may be
provisionally replaced by complying with the
formalities provided for by law.”
Art. 32. of the Articles: “The present Articles
of Association can be modied by decision of
the General Meeting specially convened for this
purpose, in the forms and conditions prescribed
by articles 450-1 and 450-8 of the law of 10 August
1915 on the commercial companies, as amended.”
i) The powers of the members of the Board of
Directors are dened inArt. 18 and seq. of the
Articles of the company. They provide in particular
that:“The Board of Directors is vested with the
broadest powers for the administration of the
company. All matters not expressly reserved to
the General Meeting by the Articles or the law
fall within the competence of the Board."
Inaddition,theArticlesprovideinArt.6:“In the
event of a capital increase, the Board of Directors
shall determine the conditions of issue of the
shares.
The new shares to be paid up in cash shall be
offered in preference to the current shareholders,
in accordance with the law.
Socn
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|
109
Company’s management report
In the event of the issue of shares by contribution
in cash or in the event of the issue of instruments
which fall within the scope of application of Article
420-27 of the law on companies and which are
paid for in cash, including and in a non-exhaustive
manner, convertible bonds allowing their holder
to subscribe to shares or to be allocated shares,
shareholders have preferential subscription rights
in proportion to their participation with regard to
all these issues in accordance with the provisions
of company law.
The General Meeting called to deliberate, under
the conditions required for the amendment of
the Articles of Association, on the increase in the
share capital or on the authorisation to increase
the capital in accordance with Article 420-23
of the law of commercial companies, may limit
or cancel the preferential subscription right or
authorise the Board to do so in the manner and
under the conditions provided for by law.”
TheotherpointsofArt.11(1)arenotapplicable,
namely:
• holdingofsharesgivingspecialcontrolrights;
• theexistenceofastaffshareholdingsystem;
• shareholder agreements that may result in
restrictions on the transfer of securities or voting
rights;
• the indemnities provided in the event of the
resignation or dismissal of members of the Board
of Directors or staff following a takeover bid.
Corporate responsibility policy
On 30
th
March2022,,theGroupapprovedtheupdate
of its responsible management policy renewed
and reinforced in 2021 in order to comply with the
GPSNR (Global Platform for Sustainable Natural
Rubber) policy. This responsible management policy
is based on the Group’s three pillars of commitment,
alongside its specic commitment to transparency:
rural development, workers and local communities,
and the environment. These commitments form the
basis of key initiatives aimed at improving long-term
economic performance, social well-being, health,
safety and natural resource management.
An implementation plan for this policy has been
denedandimplementedthroughout2021.
The efforts and actions undertaken by the Socn
Group in this area are detailed in a regularly updated
dashboard as well as in a separate annual report
(“SustainableDevelopmentReport”).
The responsible management policy, the dashboard
and the annual sustainable development report are
available on the Group’s website.
Estimated value per share (company accounts)
TheestimatedvalueofSocnat31
st
December 2021
amountstoEUR291.7million(EUR20.60pershare).
This valuation includes unrealised gains on the
portfolio.
As a reminder, the share price was EUR 20.80 at the
endofthe2021nancialyearcomparedtoEUR23.20
one year earlier.
Company’s management report
110
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Socn
Signicant events after the end of the year
As at 25
th
February2022,Socnprepaidanamountof
USD25,000,000i.e.EUR22,409,465.76ofitsdebtto
PNS Ltd S.A.
PNS Ltd S.A. itself repaid early an amount of
USD 25,000,000 of its bank loan.
In February 2022, a number of countries (including
theUS,UKandEU)imposedsanctionsagainstcertain
entities and individuals in Russia as a result of the
ofcialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Announcements of potential additional sanctions have
been made following military operations initiated by
Russia against the Ukraine on 24
th
February 2022.
Due to the growing geopolitical tensions, since
February2022,therehasbeenasignicantincrease
in volatility on the securities and currency markets, as
wellasasignicantdepreciationoftherubleagainst
the US dollar and the euro. It is expected that these
events may affect the activities of Russian enterprises
in various sectors of the economy.
The company regards these events as non-adjusting
events after the reporting period.
Although neither the company’s performance and
going concern nor operations, at the date of this
report, have been signicantly impacted by the
above, the Board of Directors continues to monitor
theevolvingsituationanditsimpactonthenancial
position and results of the company.
Impact of the Covid-19 crisis
Thenancialforecastsofthecompanyanditsdirect
and indirect subsidiaries for the years 2022 and 2023,
thesustainedlevelsofmarketpricesinthisrstpart
of the year, indicate that the business will generate
sufcient cash to meet the Group’s obligations and
ensure the going concern of the operations.
Key risks and uncertainties
It must be emphasised that the Group’s investments in
Africa and Southeast Asia may be subject to political
and economic risks. On-site executives and managers
follow the day-to-day evolution of the situation.
Perspectives
Theresultforthe2022nancialyearwilldependto
a large extent on the dividend distributions of the
subsidiaries.
Statutory appointments
The mandate of Administration and Finance
Corporation “AFICO”,outgoing Director, expires this
year. As the latter does not wish to stand again, it will
beproposedatthenextGeneralMeetingtoappoint
Mr. Cyrille Bolloré for a term of six years, expiring
duringtheGeneralMeetingof2028.
On the other hand, the Board of Directors takes note
of the resignation of Mr. Philippe de Traux from his
mandate as director. It will not be proposed to the
GeneralMeetingtoprovideforhisreplacement.
The Board of Directors
Audit report on the Company’s financial statements
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111
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of
Société Financière des Caoutchoucs
Abbreviated SOCFIN
4, Avenue Guillaume
L-1650, Luxembourg
Report on the audit of the nancial statements
Opinion
WehaveauditedthenancialstatementsofSociété
Financière des caoutchoucs S.A. (the “Company”),
which comprise the balance sheet as at 31 December
2021,andtheprotandlossaccountfortheyearthen
ended, and the notes to the nancial statements,
includingasummaryofsignicantaccountingpolicies.
Inouropinion,theaccompanyingnancialstatements
giveatrueandfairviewofthenancialpositionofthe
Company as at 31 December 2021, and of the results of
its operations for the year then ended in accordance
with Luxembourg legal and regulatory requirements
relating to the preparation and presentation of the
nancialstatements.
Basis for opinion
We conducted our audit in accordance with EU
Regulation N° 537/2014, the Law of 23 July 2016
onthe auditprofession(the “Lawof23July2016”)
andwithInternationalStandardsonAuditing(“ISAs”)
as adopted for Luxembourg by the “Commission de
Surveillance du Secteur Financier” (“CSSF”). Our
responsibilitiesundertheEURegulationNº537/2014,
theLawof23July2016andISAsarefurtherdescribed
in the “Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the nancial statements”
section of our report. We are also independent of
the Company in accordance with the International
Ethics Standards Board for Accountants’ Code of
EthicsforProfessionalAccountants(“IESBACode”)as
adopted for Luxembourg by the CSSF together with
the ethical requirements that are relevant to our
audit ofthe nancial statements,and have fullled
our other ethical responsibilities under those ethical
requirements. We believe that the audit evidence we
haveobtainedissufcientandappropriatetoprovide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most signicance in
ourauditof thenancial statementsofthe current
period. These matters were addressed in the context
oftheauditof thenancialstatements asawhole,
and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Valuation of shares in afliated undertakings
Risk identied
As at 31 December 2021, the shares in afliated
undertakings amounts to 186 million euros and
represents 48% of the total assets of the balance
sheet.Sharesinafliatedundertakingsarevaluedat
historical acquisition cost which includes incidental
expenses. In the case of durable depreciation in value
according to the opinion of the Board of Directors,
value adjustments are made in respect of nancial
xed assets, so that they are valued at the lower
guretobeattributedtothematthebalancesheet
date. These value adjustments are not continued if
the reasons for which the value adjustments were
made have ceased to apply.
The assessment of the durable depreciation in value
ofthesesharesinafliatedundertakingsrequiresthe
exercise of the Board of Directors’ judgement in its
choice of the elements to be considered according
to the shares in afliated undertakings, whether
marketelements(sharespricewhenapplicable)and/
or historical elements (adjusted net equity) and/or
forecast elements (discounted future cash ows to
shareholders).
Due to the size of the balance and judgement included,
we considered this area to be a key audit matter.
Audit report on the Company’s financial statements
112
|
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Socn
Our answer
Our audit procedures over the impairment of the shares
inafliatedundertakingsincludedamongstother:
• Assessing the accounting policies determined by
the Board of Directors, as described in the note
2 of the nancial statements, to determine the
value adjustments to be recorded on shares in the
afliatedundertakings;
• Ensuring that the accounting policies used by the
BoardofDirectorswereproperlyapplied:
- when the Board of Directors relied on market
data, we reconciled the share prices as at 31
December 2021 used for the valuation of shares
in afliated undertakings to the ofcial stock
marketsquotations;
- when the Board of Directors relied on historical
data, we reconciled the adjusted net equity
used inthe valuation ofthe sharesinafliated
undertakings as at 31 December 2021 to the
nancial information of the related afliated
undertakings and assessed the appropriateness of
evidence supporting the adjustments made to the
net equity, if any.
• Assessing the appropriateness of the disclosures
madeintheNote3ofthenancialstatements.
Other information
The Board of Directors is responsible for the other
information. The other information comprises the
information included in the annual report including
the management report and the corporate governance
statement but does not include the nancial
statements and our report of “réviseur d’entreprises
agréé”thereon.
Ouropiniononthenancialstatementsdoesnotcover
the other information and we do not express any form
of assurance conclusion thereon.
Inconnectionwithourauditofthenancialstatements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materiallyinconsistentwiththenancialstatements
or our knowledge obtained in the audit or otherwise
appears to be materially misstated. 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 this fact. We have nothing to
report in this regard.
Responsibilities of the Board of Directors and
those in charge of governance for the nancial
statements
The Board of Directors is responsible for the
preparation and fair presentation of the nancial
statements in accordance with Luxembourg legal and
regulatory requirements relating to the preparation
and presentation of the nancial statements, and
for such internal control as the Board of Directors
determines is necessary to enable the preparation
of nancial statements that are free from material
misstatement, whether due to fraud or error.
The Board of Directors is also responsible for
presentingthenancialstatementsincompliancewith
the requirements set out in the Delegated Regulation
2019/815 on European Single Electronic Format, as
amended(“ESEFRegulation”).
In preparing the nancial statements, the Board of
Directors is responsible for assessing the 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 Board
of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative
but to do so.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the nancial statements
The objectives of our audit are to obtain reasonable
assurance about whether the nancial statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue a report
of the “réviseur d’entreprises agréé” that includes
our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit
conducted in accordance with EU Regulation N°
537/2014,theLawof23July2016andwiththeISAs
as adopted for Luxembourg by the CSSF 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
inuencetheeconomicdecisionsofuserstakenonthe
basisofthesenancialstatements.
Socn
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2021
|
113
Audit report on the Company’s financial statements
As part of an audit in accordance with EU Regulation
N°537/2014,theLawof23July2016andwithISAs
as adopted for Luxembourg by the CSSF, we exercise
professional judgment and maintain professional
skepticismthroughouttheaudit.Wealso:
• Identify and assess the risks of material
misstatementofthenancialstatements,whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufcient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by the
Board of Directors.
• Conclude on the appropriateness of Board of
Directors’ use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
signicant doubt on the Company’s ability to
continue as a going concern. If we conclude that
a material uncertainty exists, we are required
to draw attention in our report of the “réviseur
d’entreprises agréé” to the related disclosures in
thenancialstatementsor,ifsuchdisclosuresare
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our report of the “réviseur d’entreprises
agréé”.However,future eventsor conditionsmay
cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and
contentofthe nancialstatements, includingthe
disclosures, and whether the nancial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
• Assesswhetherthenancialstatementshavebeen
prepared, in all material respects, in compliance
with the requirements laid down in the ESEF
Regulation.
in accordance with applicable legal requirements.
with
the
nancial
statements
and
has
been
prepared
accounts
of
undertakings,
as
amended,
is
consistent
register
and
on
the
accounting
records
and
annual
19 December 2002 on the commercial and companies
68ter
paragraph
(1)
letters
c)
and
d)
of
the
law
of
of
Directors.
The
information
required
by
article
on
pages
19
to
24
is
the
responsibility
of
the
Board
The
accompanying
corporate
governance
statement
applicable legal requirements.
statements and has been prepared in accordance with
The
management
report
is
consistent
with
the
nancial
reappointments, is 2 years.
engagement,
including
previous
renewals
and
26
May
2020
and
the
duration
of
our
uninterrupted
agréé”
by
the
General
Meeting
of
the
Shareholders
on
We
have
been
appointed
as
“réviseur
d’entreprises
requirements
Report on other legal and regulatory
disclosure about the matter.
our
report
unless
law
or
regulation
precludes
public
the key audit matters. We describe these matters in
statements
of
the
current
period
and
are
therefore
were
of
most
signicance
in
the
audit
of
the
nancial
with
governance,
we
determine
those
matters
that
From the matters communicated with those charged
safeguards.
our
independence,
and
where
applicable,
related
matters
that
may
reasonably
be
thought
to
bear
on
communicate
to
them
all
relationships
and
other
ethical
requirements
regarding
independence,
and
a
statement
that
we
have
complied
with
relevant
We also provide those charged with governance with
control that we identify during our audit.
including
any
signicant
deciencies
in
internal
and
timing
of
the
audit
and
signicant
audit
ndings,
regarding,
among
other
matters,
the
planned
scope
We communicate with those charged with governance
Audit report on the Company’s financial statements
114
|
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Socn
We have checked the compliance of the nancial
statements of the Company as at 31 December 2021
with relevant statutory requirements set out in the
ESEF Regulation that are applicable to the nancial
statements.FortheCompany,itrelatesto:
• Financial statements prepared in valid xHTML
format
Inouropinion,thenancialstatementsoftheCompany
as at 31 December 2021, identied as 2021 Socn
Annual Report, have been prepared, in all material
respects, in compliance with the requirements laid
down in the ESEF Regulation.
Weconrmthattheauditopinionisconsistentwith
the additional report to the audit committee or
equivalent.
We conrm that the prohibited non-audit services
referred to in EU Regulation No 537/2014 were not
provided and that we remained independent of the
Company in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Yves Even
Luxembourg, 29th April 2022
Socn
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|
115
Company’s financial statements
1. Balance sheet as at 31 December 2021
2021 2020
ASSETS
Note EUR EUR
FIXED ASSETS
Financial assets
3
Sharesinafliatedundertakings 186,370,878.78
186,370,890.33
Loanstoafliatedundertakings 187,056,434.52
90,592,500.00
373,427,313.30 276,963,390.33
CURRENT ASSETS
Debtors
Amountsowedbyafliatedundertakings
4
becoming due and payable within one year
10,195,491.23 36,602,375.37
Other debtors
becoming due and payable within one year
102,752.43 51,846.24
10,298,243.66 36,654,221.61
Cash at bank and in hand
4,640.73 12,383.73
10,302,884.39 36,666,605.34
TOTAL ASSETS
383,730,197.69 313,629,995.67
The accompanying notes form an integral part of the annual accounts.
Company’s financial statements
116
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Socn
2021 2020
CAPITAL, RESERVES AND LIABILITIES Note EUR EUR
CAPITAL AND RESERVES 5
Subscribed capital
24,779,510.00 24,779,510.00
Share premium account
501,846.51 501,846.51
Reserves
Legal reserve
2,477,951.00 2,477,951.00
Other reserves, including the fair value reserve
Other available reserves
57,277,681.15 57,277,681.15
59,755,632.15 59,755,632.15
Protbroughtforward
102,447,638.68 93,782,497.98
Protforthenancialyear
10,068,154.41 8,665,140.70
Interim dividends
-1,573,302.22 0.00
195,979,479.53 187,484,627.34
CREDITORS
Non convertible loans
Becoming due and payable within one year
6
0.00 80,195,555.56
Amounts owed to credit institutions
7
Becoming due and payable within one year
24.25 30,000,128.50
Trade creditors
Becoming due and payable within one year
158,685.05 106,627.25
Amountsowedtoafliatedundertakings
Becoming due and payable within one year 8
20,822,207.84 15,542,697.62
Becoming due and payable after more than one year
166,463,934.52 0.00
Other creditors
Tax authorities
38,190.00 32,370.00
Other creditors
Becoming due and payable within one year
267,676.50 267,989.40
187,750,718.16 126,145,368.33
TOTAL CAPITAL, RESERVES AND LIABILITIES
383,730,197.69 313,629,995.67
The accompanying notes form an integral part of the annual accounts.
Company’s financial statements
Socn
|
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|
117
2.
Income statement for the year ended 31 December 2021
2021 2020
Note EUR EUR
Raw materials and consumables
Other external expenses
-1,542,982.22 -1,407,327.42
Other operating expenses
-21,335.89 -11,131.99
Income from participating interests
Derivedfromafliatedundertakings
9 10,244,095.77 9,105,263.33
Income from other investments and loans forming part
of the xed assets
Derivedfromafliatedundertakings
10 4,931,601.83 4,331,835.62
Other interest receivable and similar income
Derivedfromafliatedundertakings
1,395,636.98 1,493,876.71
Other interest and similar income
664.52 299.37
Interest payable and similar expenses
Concerningafliatedundertakings
-1,179,855.58 -30,689.32
Other interest and similar expenses
-3,753,620.70 -4,784,513.47
Taxonprotorloss -230.26 -102.13
Prot or loss after taxation 10,073,974.45 8,697,510.70
Othertaxesnotshownunderitems1to16 -5,820.04 -32,370.00
Prot for the nancial year 10,068,154.41 8,665,140.70
Beneciary distribution proposal
2021 2020
EUR EUR
Retained earnings 103,075,979.76 102,447,638.68
Fromthebalance:
10%ontheBoardofDirectors 943,981.33 0.00
90%to14,159,720shares
8,495,832.00 0.00
112,515,793.09 102,447,638.68
Dividend per share 0.60 0.00
The accompanying notes form an integral part of the annual accounts.
Company’s financial statements
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3. Notes to the nancial statements for the year 2021
Note 1. Overview
The company was incorporated on 5
th
December 1959
as a public limited company and adopted the status of
“Sopar”on10
th
January 2011.
The duration of the company is unlimited, and its
registered ofce is established in Luxembourg. The
company is registered in the Register of Commerce
andCompaniesundernumberB5937andislistedon
the Luxembourg Stock Exchange under ISIN number
LU0027967834.
The object of the company is (i) the acquisition,
holding and disposal, in any form whatsoever and by
any means, directly or indirectly, of participations,
rights and interests, as well as bonds of Luxembourg or
foreigncompanies,(ii)theacquisitionbycontribution,
purchase, subscription or otherwise, as well as the
disposal by sale, transfer, exchange or otherwise,
of shares, interests, bonds, debts, notes and other
securities or nancial instruments of any kind (in
particular bonds or shares issued by Luxembourg or
foreign collective investment funds or any other
similarbody),loansoranyothercreditline,aswell
as contracts relating thereto and (iii) the holding,
administration, development and management of
a portfolio of assets (composed in particular of the
assetsdescribedinpoints(i)and(ii)above).
The company may also acquire and develop any
patents and other rights relating to or supplementing
those patents.
The company may borrow in any form whatsoever. It
may enter into any kind of loan agreement and may
issue debt securities, bonds, certicates, shares,
protshares,warrantsandallkindsofdebtandequity
securities, including by virtue of one or several issue
programmes. The company may lend funds, including
those resulting from borrowings and/or securities
issues, to its subsidiaries, afliates and any other
company.
The company also prepares consolidated nancial
statements which are published in accordance with
the law and which are available at the company’s
registered ofce (4, avenue Guillaume, L-1650
Luxembourg)orontheInternetsite:www.socn.com.
Thenancialyearbeginson1
st
January and ends on
31
st
December.
Note 2. Accounting principles, rules and methods
Going concern and Impact of the COVID-19 pandemic
As of 31
st
December 2021, the current liabilities exceed
currentassetsforanamountofEUR10,983,875:
• Considering the terms of the loan (Note 3) and
the terms of the advance (Note4)made towards
Socnaf S.A., the current assets amount to
EUR 10,302,884.
• The current liabilities amount to EUR 21,286,759
mainly due to the cash pooling position for an
amount of EUR 10,896,358 as well asthecurrent
debts for an amount of EUR 9,913,109 owed to
SocnasiaandtoPNSLtd(Note8)andotherdebts
due to trade creditors.
In orderto faceits shorttermnancial obligations,
Socnhasobtainedacomfortletterfromtheentity
owning the cash pool of the group stating that it will
nancially support Socn through its cash pooling
andwillnottoclaimthepayableduebySocnfora
periodof12monthsfollowingtheAGMapproving2021
company’snancialstatements.
Furthermore, during 2021, though the impact of the
COVID-19pandemicontheactivitiesofthecompany
and its subsidiaries was limited, the mangement has
adapted to the new constraints and is permanently
monitoring the risks related to this health crisis. The
spread of the virus is still active and unpredictable,
which brings uncertainty to economic development on
one side and to the course of business affairs on the
other side.
Taking into account the impact of the COVID-19
outbreak based on the information available to date
(March2022),thecompanyhaspreparedacashow
Company’s financial statements
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plan assessing a liquidity position of the company
and its subsidiaries based on management’s best
estimates. Considering the partial activation of
aboveshareholder’sengagement,thiscashowplan
showssufcientliquidityforthecompanytomeetits
obligationsandconrmsthegoingconcernassumption
for at least the twelve months following the date of
approvalofthecurrentnancialstatements.
General principles
The annual nancial statements are prepared in
accordance with Luxembourg legal and regulatory
requirements in force in Luxembourg under the
historical cost convention.
The accounting policies and valuation principles
are, apart from the rules imposed by the law of
19
th
December 2002, determined and implemented by
the Board of Directors.
The preparation of the annual nancial statements
involves the use of a number of critical accounting
estimates. It also requires the Board of Directors
to exercise its judgement in the application of
accounting principles. Any change in assumptions may
haveasignicantimpactontheannualaccountsfor
the period in which the assumptions are changed.
The Board of Directors believes that the underlying
assumptions are appropriate and that the nancial
statementsgiveatrueandfairviewofthenancial
position and results of the company.
Currency conversion
Thecompanykeepsitsaccountsineuros(EUR); the
annual accounts are expressed in the same currency.
Transactions in a currency other than the balance
sheet currency are converted into the balance sheet
currency at the exchange rate prevailing on the date
of the transaction.
Atthebalancesheetdate:
-theacquisitionpriceofthenancialassets,expressed
in a currency other than the currency of the balance
sheet, remain converted at the historical exchange
rate, with the exception of the current portion of
receivables, which is valued individually at the
lower of their historical exchange rate value or
their value determined on the basis of the exchange
rateprevailingatthebalancesheetdate;
- bank accounts expressed in a currency other than
the currency of the balance sheet are valued on the
basis of the exchange rate prevailing on the balance
sheet date. Foreign exchange gains and losses are
recognisedinthecurrentperiod;
- all other assets, expressed in a currency other than
the currency of the balance sheet, are valued
individually at the lower of their value at the
historical exchange rate or their value determined
on the basis of the exchange rate prevailing at the
balancesheetdate;
- all liability items, expressed in a currency other
than the currency of the balance sheet, are valued
individually at the highest of their value at the
historical exchange rate or their value determined
on the basis of the exchange rate prevailing on the
balance sheet.
Realised foreign exchange gains and losses and
unrealisedlossesarerecognisedintheprotandloss
account. Unrealised foreign exchange gains are not
recognised.
If there is an economic link between two transactions,
unrealised exchange differences are recognised at the
corresponding unrealised exchange loss.
Valuation of nancial assets
Shares in afliated undertakings are valued at
acquisition cost, which includes incidental expenses.
Receivables from afliated companies are valued
at their nominal value, which includes incidental
expenses.
In the event of an impairment that, in the opinion of
the Board of Directors, is of a lasting nature, these
nancialxedassetsaresubjecttovalueadjustments
in order to give them the lower value that should
be attributed to them on the balance sheet date, as
determined by the Board of Directors.
In order to determine the value adjustments that are
permanent at the balance sheet date, the Board of
Directors carries out the following analyses for each
investmentonanindividualbasis:
Company’s financial statements
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1/ For investments listed on public markets, the
Board of Directors compares the net book value of
the investment with its shares in the market based on
the stock market price at the closing date. When the
market value is greater than or equal to the net book
value, the Board of Directors considers that no value
adjustment needs to be recorded at the closing date.
However, when the market value is lower than the net
book value, the Board of Directors tests the net book
value against the share in the revalued net assets of
the investment.
2/ If the net book value exceeds the market value or
the equity value for unlisted investments, the Board
of Directors compares the net book value with the
share held in the revalued net assets as well as in
the consolidatednet assets (i.e.equityattributable
to owners of the parent company) if the subsidiary
prepares consolidated accounts.
If one of these values is greater than or equal to the
net book value of the investment, no value adjustment
is recognised.
3/ When both values are lower than the net book
valueoftheinvestment:
• for support companies (other than plantations
or industrial companies), the Board of Directors
records the value adjustment resulting from the
smaller difference between the net book value of
the investment and the share held in the revalued
netassetsorintheconsolidatednetassets;
• for investments in plantations or industrial
companies, the Board of Directors makes a
value adjustment to bring the carrying value
at the enterprise value calculated on the basis
of the discounted future cash ows available to
the shareholders, which take into account the
foreseeable development of the business of the
investments under test.
However, the Board of Directors may take other factors
into consideration and, in particular, in view of the
very long period of immaturity of young plantation, it
considers that the value adjustment is not permanent
for a plantation where more than half of the planted
area is not being used.
Loanstoafliatedcompaniesaresubjecttoavalue
adjustment in the event that the net book value test
bydiscountingfuturecashowstoshareholdersdoes
not support the full repayment of the receivable.
These value adjustments are not maintained when the
reasons for which they were established have ceased
to exist.
Receivables
Receivables are recorded at their nominal value.
They are subject to value adjustments when their
recovery is compromised. These value adjustments
are not continued if the reason for which the value
adjustments were made have ceased to apply.
Liabilities
Debts are recorded at their reimbursement value.
When the amount to be repaid on the debts exceeds
the amount received, the difference is recorded to
theprotandlossaccount.
Company’s financial statements
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Note 3. Financial xed assets
Shares in afliated undertakings Loans to afliated undertakings Total
2021 2020 2021 2020 2021 2020
EUR EUR EUR EUR EUR EUR
Acquisition cost nominal value at
the beginning of the year
186,370,890.33 180,252,467.00 90,592,500.00 90,592,500.00 276,963,390.33 270,844,967.00
Increases
0.00 6,118,423.33 96,463,934.52 0.00 96,463,934.52 6,118,423.33
Decrease -11.55 0.00 0.00 0.00 -11.55 0.00
Acquisition cost nominal value at
the end of the year
186,370,878.78 186,370,890.33 187,056,434.52 90,592,500.00 373,427,313.30 276,963,390.33
Value adjustments at the beginning and
at the end of the year
0.00 0.00 0.00 0.00 0.00 0.00
Net book value at the end of the year
186,370,878.78 186,370,890.33 187,056,434.52 90,592,500.00 373,427,313.30 276,963,390.33
Information on movements during the year
Duringtheyear,thecompanyhassold:
- 1 share of PNS Ltd S.A.
Information on companies in which the company holds at least 20% of the capital
Entity Country % held
NET BOOK
VALUE EUR Year end
Currencies
of the
annual
accounts
Net equity as
at 31/12/2021
Net result as
at 31/12/2021
Socnaf(**) Luxembourg 64.51 137,245,816 31/12/2021 EUR 258,796,451 6,499,115
Socnasia(**) Luxembourg 58.09 48,579,664 31/12/2021 EUR 446,773,525 45,000,180
Induservices(*) Luxembourg 35.00 35,000 31/12/2021 EUR 239,523 3,393
ManagementAssociates(*) Luxembourg 20.00 400,000 31/12/2021 EUR 2,699,652 262,563
180,260,480
(*)Basedonunauditednancialstatementsasof31
st
December 2021.
(**)Basedonauditednancialstatementsasof31
st
December 2021.
Valuation of shares in afliated undertakings
As of 31
st
December 2021, the Board of Directors is of the opinion
that there is no permanent value decrease for the shares in
afliatedundertakings.
Information and valuation of loans to afliated
undertakings
As of 31
st
December2021,theloanstoafliatedundertakings
aremainlycomprised:
- of receivables from Socnaf for a nominal amount of
EUR120,000,000.00(2020:EUR90,000,000.00)andwhichbear
axedinterestrateof4.25%.Thematurityofthereceivableis
xedon10
th
November2026.
- of receivables from Socnaf for a nominal amount of
USD 74,750,000.00 (2020: USD 0.00) bearing interest at the
3-monthUSDLIBORrate+6.95%.Thematurityofthisreceivable
isxedon10
th
November2026.
As of 31
st
December 2021, the Board of Directors are of the
opinion that these loans are recoverable as such, no impairment
loss has been accounted for.
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Company’s financial statements
Note 4. Amounts owed by afliated undertakings
The amounts owed by afliated undertakings are mainly
comprisedofanadvancegrantedtoSocnafS.A.foranamount
ofUSD10,000,000(2020:USD)bearinginterestatthe3-month
LIBORUSDrate+6.95%.
As of 31
st
December 2021, the Board of Directors is of the opinion
that the amounts are fully recoverable and as such, no impairment
has been accounted for.
Note 5. Equity
Capital
subscribed
EUR
Share
premium
EUR
Legal
reserve
EUR
Other
reserves
EUR
Retained
earnings
EUR
Prot for
the year
EUR
Interim
dividends
EUR
Situation as of 1
st
January 2020 24,779,510.00 501,846.51 2,477,951.00 57,277,681.15 93,602,025.95 8,833,634.25 -786,651.11
Distribution of the result for the 2019
nancialyearfollowingdecisionofthe
GeneralMeetingheldon26
th
May2020
• Retained earnings
180,472.03 -180,472.03
• Dividends
-7,079,860.00
• Directors’ fees
-786,651.11
• 2019 interim dividend
-786,651.11 786,651.11
Financialyearprotfor2020 8,665,140.70
Situation as of 31
st
December 2020
24,779,510.00
501,846.51 2,477,951.00
57,277,681.15 93,782,497.98
8,665,140.70 0.00
Allocation of the result for the 2020
nancialyearfollowingdecisionofthe
GeneralMeetingheldon25
th
May2021:
• Retained earnings
8,665,140.70 -8,665,140.70
Interim dividends as per decision of
theBoardofDirectorsof26
th
October
2021
-1,573,302.22
Financialyearprotfor2021
10,068,154.41
Situation as of 31
st
December 2021 24,779,510.00 501,846.51 2,477,951.00 57,277,681.15 102,447,638.68 10,068,154.41 -1,573,302.22
Issued capital
As of 31
st
December 2021 and 2020, the issued and fully paid
capital isEUR 24,779,510.00representedby 14,159,720shares
without nominal value.
Share premium
As of 31
st
December 2021 and 2020, the share premium amounts
toEUR501,846.51.
Legal reserve
Theannualprotissubjecttoalevyof5%tobeallocatedtoa
legal reserve. This deduction ceases to be compulsory as soon as
thereservereaches10%ofthecapital.Thelegalreservecannot
be distributed.
Note 6. Convertible loans
On the 9
th
December2016,thecompanyhasissued800bondsata
nominalvalueofEUR100,000.00bearinganannualxedinterest
rateof4%.Thesebondshavebeenreimbursedon9
th
December
2021.
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Company’s financial statements
Note 7. Amounts owed to credit institutions
As at 31
st
December 2020, credit institutions were mainly comprised of a revolving credit facility for an amount
of EUR 30,000,000. This revolving credit facility was reimbursed in 2021.
The company is in compliance with covenants related to amounts owed to credit institutions.
Note 8. Amounts owed to afliated entities
As of 31
st
December2021,theamountsowedtoafliatedentitiesaremainlycomprised:
- ofadebttoSocnasiaforanominalamountofEUR100,000,000.00(2020:EUR0.00)plusaccruedinterestof
EUR583,333.33(2020:EUR0.00)andwhichbearaxedinterestrateof4%.Thisdebtisrepayableearlyorat
the latest on 10
th
November2026.
- ofalongtermdebttoPNSLtdforanominalamountofEUR66,463,934.52(2020:EUR0.00)plusaccrued
interestofEUR500,533.22(2020:EUR0.00).Thisdebtbearsinterestata3-monthUSDLIBORrate+6.70%and
is repayable early or at the latest on 10
th
November2026.
- ofadebttoPNSLtdS.A.foranominalamountofEUR8,829,242.45(2020:EUR0.00)beingtheshorttermpart
oftheEUR66,463,934.52longtermdebtplusaccruedinterestofEUR500,533.22(2020:EUR0.00).Thisdebt
bearsinterestata3-monthUSDLIBORrate+6.70%andisrepayablewithinoneyear.
- ofacashpoolingwithSocndeforanamountofEUR10,896,357.63(2020:EUR15,539,714.12).
Note 9. Income from participating interests
2021 2020
EUR EUR
Dividends received
10,244,095.20 9,105,263.33
Thisamountcorrespondstothedividendreceivedfromtheafliatedundertakings(Note3).
Note 10. Income from other investments and loans forming part of the xed
assets
2021 2020
EUR EUR
Interest on related companies’ receivables
4,931,601.83 4,331,835.62 (*)
(*)Thisamountwaspreviouslydisclosedunderthecaption:“Netincomefromparticipatinginterests”.
Toensurecomparability,prioryearguresaremodiedaccordingly.
Thisamountcorrespondstointerestincomereceivedontheloansowedbyafliatedundertakings(Note3).
Note 11. Taxation
The company is subject to all taxes to which Luxembourg commercial companies are subject to.
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Note 12. Remuneration of the Board of Directors
During the 2021 nancial year, the remuneration
of members of the Board of Directors amounted to
EUR10,312.50(2020:EUR5,938)asattendancefees
and EUR 157,330 (2020: EUR 786,651) as directors’
fees.
During 2021, no advances or loans were granted to
members of the management or supervisory boards.
Note 13. Political and economic environment
The company holds interests in companies that
operate indirectly in Africa and South-East Asia.
Given the economic and political instability in these
Africancountries(SierraLeone,Liberia,IvoryCoast,
Ghana, Nigeria, Cameroon, São Tomé and Principe and
Democratic Republic of Congo) and South-East Asia
(CambodiaandIndonesia),theseholdingsareexposed
topoliticalandeconomicuctuationsrisks.
Note 14. Off-balance sheet commitments
As at 31
st
December 2021, the company guaranteed
the repayment of the loan of USD 100,000,000 from
PNSLtdS.A.withanancialinstitution.
Note 15. Signicant events after the year end
As of 25
th
February2022,Socnprepaidanamountof
USD25,000,000i.e.EUR22,409,465.76ofitsdebtto
PNS Ltd.
PNS Ltd itself repaid early an amount of USD 25,000,000
of its bank loan.
In February 2022, a number of countries (including
theUS,UKandEU)imposedsanctionsagainstcertain
entities and individuals in Russia as a result of the
ofcialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Announcements of potential additional sanctions have
been made following military operations initiated by
Russia against the Ukraine on 24
th
February 2022.
Due to the growing geopolitical tensions, since
February2022,therehasbeenasignicantincrease
in volatility on the securities and currency markets, as
wellasasignicantdepreciationoftherubleagainst
the US dollar and the euro. It is expected that these
events may affect the activities of Russian enterprises
in various sectors of the economy.
The company regards these events as non-adjusting
events after the reporting period. Although neither
the company’s performance and going concern nor
operations, at the date of this report, have been
signicantly impacted by the above, the Board of
Directors continues to monitor the evolving situation
anditsimpactonthenancialpositionandresultsof
the company.
Company’s financial statements
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