2021
ANNUAL REPORT
Socfinaf S.A.
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ANNUAL REPORT 2021
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Socnaf S.A.
Group prole 4
1. Overview of the Group 4
2. History 4
3. Group structure 6
4. InformationonSocnafholdings 7
International market for rubber and palm oil 22
1. Rubber 22
2. Palmoil 25
Environment and social responsibility 28
Key gures 29
1. Activityindicators 30
2. Keyguresintheconsolidatedincomestatementandthecashowstatement 30
3. Keyguresintheconsolidatedstatementofnancialposition 30
Stock market data 31
Financial highlights of the year 31
Corporate governance statement 32
1. Introduction 32
2. Corporategovernancechart 32
3. BoardofDirectors 32
4. CommitteesoftheBoardofDirectors 35
4.1.AuditCommittee 35
4.2.AppointmentandRemunerationCommittee 36
5. Remunerations 36
6. Shareholdingstatus 36
7. Financialcalendar 37
8. Externalaudit 37
9. Corporate,socialandenvironmentalresponsibility 37
10.Otherinformation 37
Statement of compliance 38
Consolidated management report 39
Auditor’s report on the consolidated nancial statements 39
Consolidated nancial statements 39
1. Consolidatedstatementofnancialposition 48
2. Consolidatedincomestatement 50
3. Consolidatedstatementofcomprehensiveincome 51
4. Consolidatedstatementofcashows 52
5. Consolidatedstatementofchangesinequity 53
6. Notestotheconsolidatednancialstatements 54
Note1.Overviewandaccountingpolicies 54
Note2.Subsidiariesandassociates 66
Note 3. Leases 69
Note4.Intangibleassets 71
Note5.Property,plantandequipment 72
Note6.Biologicalassets 73
Note7.Depreciationandimpairment 74
Note8.Impairmentofassets 74
Note9.Non-whollyownedsubsidiariesinwhichnon-controllinginterestsaresignicant 76
Note10.Investmentsinassociates 78
Note11.Financialassetsatfairvaluethroughothercomprehensiveincome 82
Note12.Deferredtaxes 83
Note13.Currenttaxassetsandliabilities 83
Note 14. Income tax expense 84
Note15.Inventories 86
TABLE OF CONTENTS
Table of contents
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Note16.Tradereceivables(currentassets) 87
Note17.Otherreceivables(currentassets) 87
Note18.Cashandcashequivalents 87
Note19.Sharecapitalandsharepremium 88
Note20.Legalreserves 88
Note21.Pensionobligations 89
Note22.Financialdebts 91
Note23.Tradeandotherpayables 95
Note24.Financialinstruments 96
Note25.Staffcostsandaveragenumberofstaff 98
Note26.Othernancialproducts 98
Note27.Financecharges 98
Note28.Netearningspershare 99
Note29.DividendsandDirectors’fees 99
Note30.Informationonrelatedparty 100
Note31.Offbalancesheetcommitments 102
Note32.Segmentinformation 103
Note33.Riskmanagement 110
Note34.Contingentliabilities 113
Note35.Politicalandeconomicenvironment 114
Note36.Eventsaftertheclosingdate 114
Note37.Auditor’sfees 114
Company’s management report 126
Audit report on the Company’s nancial statements 128
Company nancial statements 129
1. Balancesheetasat31
st
December2021 129
2. Incomestatementfortheyearended31
st
December2021 129
3. Notestotheparentcompanynancialstatementsforthe2021nancialyear 138
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Socnaf S.A.
Portrait du GroupeGroup prole
1. Overview of the Group
SocnafisaLuxembourgcompanyanditsregistered
addressis4,AvenueGuillaume,L-1650,Luxembourg.
Itwasincorporatedon22
nd
October1961andislisted
ontheStockofExchangeLuxembourg.
The principal activity of Socnaf is to manage a
portfolioofsharesmainlyfocusedontheoperationof
morethan138,900hectaresoftropicalpalmoiland
rubberplantationsinAfrica.Socnafemploys24,596
people and has achieved a consolidated turnover of
EUR526.7millionin2021.
2. History
• 22/10/1961 IncorporationofCompagnieInternationaledeCultures(Intercultures)asaLuxembourgholding
company.
• 31/12/1961 InterculturesinvestsintwoCongoleseplantationsnamed“LaCompagnieCongolaisedel’Hévéa”
and“CulturesEquatoriales”.
• 18/04/1966 ThesharesofIntercultureshavebeenlistedontheStockExchangeofLuxembourg.
• 31/12/1974 NationalisationmeasuresofindustrialenterprisesbytheStateofZaire.
• 31/12/1976 ProgressofnegotiationswithZaire-exitofZairianholdingsfromtheportfolioandaccountingfor
Zaireclaim.
• 19/05/1995 IncreaseofthesharecapitalofInterculturesinordertorelaunchtheCompany’sactivityinthe
eldoftropicalplantations.
• 30/06/1995 Acquisitionof65%ofSociétédesCaoutchoucsduGrandBereby“SOGB”inIvoryCoastviaBereby
Finances“Ben”,anIvoryCoastholdingcompany.
• 30/06/1997 Acquired5%ofPalmci,anIvoryCoastcompanyproducingpalmoils.
• 30/06/1998 IncreaseofsharecapitalandinvestmentinKenyain70.8%ofRedLandsRoses,producerofroses
andSocnafCompany,coffeeproducer.
Inaddition,InterculturesacquiredthroughitsLuxembourgsubsidiary(IndunaLuxembourg)54%
ofanoilpalmplantationinNigeria,OkomuOilPalmCompany.
• 31/03/1999 InterculturescontinuestheexpansionofitsinvestmentsinAfricaandmorespecicallyinLiberia:
acquisition of 70% of Weala Rubber Company, owner of a rubber factory and 75% of Liberian
AgriculturalCompany“LAC”whichhasarubberconcession.
• 31/03/2000 Acquisitionof89.64%ofSociétédesPalmeraiesdelaFermeSuisse“SPFS”,aCamerooncompany
activeintheproduction,processingandreningofpalmoil.
• 31/12/2000 ThroughaCameroon holdingPalmcam, Interculturescontinuesits investmentsinCameroon in
Socapalm,acompanyactiveintheproductionandprocessingofpalmoil.
• 31/12/2001 FurtherincreaseinsharecapitalwhichallowedInterculturestoincreaseitsstakeinOkomuOil
PalmCompanyandinBen(parentcompanyofSOGB).
• 31/12/2006 RestructuringofSocnal Group’s holdings,includingthedistribution ofInterculturesshares by
Socnasia(spin-off)andrepositioningoftheGroup’soperatingcompanies.
• 31/12/2007 Interculturesacquired99.8%ofBrabanta,acompanydevelopingapalmoilplantationinCongo
(DRC).
Onthe otherhand, Interculturessold itsholdings WealaRubberCompany(Liberia)andPalmci
(IvoryCoast).
• 31/12/2008 ConstitutionofSudComoëCaoutchouc“SCC”(IvoryCoast)viatheIvorianholdingBen.
Interculturessold60%ofRedLandsRoses(Kenya).
• 31/12/2009 CapitalincreaseinBrabanta(DRC).
IncreasedparticipationinSalalaRubberCorporation“SRC”(Liberia).
• 17/03/2010 SaleofSocnafCompany(Kenya).
• 10/01/2011 ExtraordinaryGeneralMeetingwhichratiestheabandonmentofthestatusofHoldingcompany
29andchangeofthedenominationtoSocnaf.
• 01/07/2011 Sharesplitby10.
Group prole
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• 06/10/2011 Acquisitionof32.9%ofPalmcamsshareswhichistotallyownedbySocnaf.
• 31/12/2012 Acquisitionof3.4%ofOkomuOilPalmCompanyshares.
IncorporationofPlantationsSocnafGhana“PSG”.
• 23/10/2013 Acquisition of 100% of STP Invest’s shares, a Belgium company which owns 88% ofAgripalma,
benettingfromagrantof5,000hectaresconcessionontheislandofSãoTomé.
• 31/12/2014 Capital increase with the issue of 1,474,200 new shares subscribed by Socn in exchange for
100%ofthesharesofSociétéAnonymeForestièreetAgricole“SAFA”.Itowns68.93%ofSafacam
(Cameroon).
• 01/01/2015 BeginningofSogescolCameroonandCamseeds,whichwereformedin2014bySogescolFRand
SocnResearch
• 05/10/2015 AcquisitionofsharesinSocapalmtoincreasethepercentageholdingto4.57%.
• 04/11/2015 ConstitutionofSodimexFRandInduservicesFR.
• 01/02/2016 LiquidationofPalmcam(Cameroon).
Group prole
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Socnaf S.A.
3. Group structure
Holding companies
SOCFINDE
Luxembourg
65%
20%
30%
50%
33%
20%
20%
19%
35%
15%
SOCFIN
Luxembourg
15%
SOCFINAF
Luxembourg
50%
100%
50%
50%
50%
50%
50%
50%
STP INVEST
Belgium
100%
65%
100%
65%
100%
100%
35%
88%
BEREBY-FINANCES
Ivory Coast
0,5%
SAFA
France
93%
100%
99,5%
69%
87%
70%
100%
0,5%
67%
73%
Group prole
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4. Information on Socnafs holdings
Portfolio Number of shares Direct %
Sierra Leone
SocnAgriculturalCompany
119,970,000 93.00%
Liberia
LiberianAgriculturalCompany
25,000 100.00%
SalalaRubberCorporation
516 64.91%
Ivory Coast
Bereby-Finances
739,995 87.06%
Ghana
PlantationsSocnafGhana
750,000 100.00%
Nigeria
OkomuOilPalmCompany
622,262,022 65.23%
Cameroon
Socapalm
3,086,856 67.46%
Democratic Republic of Congo
Brabanta
4,990 99.80%
France
SociétéAnonymeForestièreetAgricole“SAFA”
577,200 100.00%
Belgium
Socnco
8,750 50.00%
Centrages
7,500 50.00%
ImmobilièredelaPépinière
3,333 50.00%
Sodimex
70,000 50.00%
STP Invest
1,800 100.00%
Luxembourg
Socnde
50,000 20.00%
Terrasia
3,328 33.28%
Induservices
3,000 30.00%
ManagementAssociates
2,000 20.00%
Switzerland
SogescolFR
2,650 50.00%
SocncoFR
650 50.00%
InduservicesFR
700 50.00%
SodimexFR
675 50.00%
InduservicesFR
700 50,00%
SodimexFR
675 50,00%
Thefollowingpagescontainasummaryoftheactivity
and comments on the nancial information for the
past two nancial years in which Socnaf holds a
directorindirectparticipation.
Unless indicated otherwise, equity includes capital,
reserves and the results brought forward before
allocationofcurrentyearresults.
Corporatedatareferstoconsolidateddata.
The balance sheet gures are presented in the
functionalcurrencyoftherespectiveentities.
Group prole
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Socnaf S.A.
SOCFIN AGRICULTURAL COMPANY “SAC”
Sharecapital:USD30,000,000
SACisactiveinSierraLeoneintheproductionofpalmoil.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Palm 12,349 0 12,349
Concessions:18,473ha
Permanent staff at 31
st
December2021:1,541
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Palmoil 52,307 30,748
Turnover(EUR000) 46,760 15,103
Result(EUR000) 16,405 -1,113
Average sale price (EUR / kg)
Palmoil 0.89 0.49
Average rate EUR/USD 1.18 1.15
Closing rate EUR/USD 1.13 1.23
Key gures (USD 000)
At 31
st
December 2021 2020
Fixedassets
137,598 142,294
Current assets
13,214 10,300
Equity(*)
16,376 -2,996
Debts,provisionsandthirdparties(*)
134,435 155,590
Resultfortheyear
19,372 -1,275
Socnaf’sholding(%)
93.00 93.00
(*)Beforeprotallocation.
Group prole
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LIBERIAN AGRICULTURAL COMPANY “LAC”
Sharecapital:USD31,105,561
LACisactiveinLiberiaintheeldofrubbercultivationandindustrialrubberprocessing.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Rubber 10,918 1,943 12,861
Concessions:121,407ha
Permanent staff at 31
st
December2021:2,082
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Rubber 26,872 28,363
Turnover(EUR000) 36,783 29,475
Result(EUR000) 4,018 -841
Average sale price (EUR / kg)
Rubber 1.37 1.04
Average rate EUR/USD 1.18 1.15
Closing rate EUR/USD 1.13 1.23
Key gures (USD 000)
At 31
st
December 2021 2020
Fixedassets 85,048 83,732
Current assets 20,297 18,347
Equity(*) 57,140 52,396
Debts,provisionsandthirdparties(*) 48,204 49,684
Resultfortheyear 4,745 -963
Socnaf’sholding(%) 100.00 100.00
(*)Beforeprotallocation.
Group prole
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Socnaf S.A.
SALALA RUBBER CORPORATION “SRC”
Sharecapital:USD49,656,328
SRC is active in Liberia in the rubber sector.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Rubber 2,907 1,538 4,445
Concessions:8,000ha
Permanent staff at 31
st
December2021:842
Production and turnover Actual Actual
As at 31
st
December 2021 2020
Production (*) (tons)
Rubber 3,710 327
Turnover(EUR000) 3,296 287
Result(EUR000) -357 -2,951
Average sale price (EUR / kg)
Rubber 0.89 0.87
Average rate EUR / USD 1.18 1.15
Closing rate EUR / USD 1.13 1.23
Key gures (USD 000)
At 31
st
December 2021 2020
Fixedassets 47,962 47,231
Current assets 2,870 1,471
Equity 2,861 3,282
Debts,provisionsandthirdparties 47,970 45,419
Resultfortheyear -421 -3,379
Socnaf’sholding(%) 64.91 64.91
(*)AgriculturalproductionfullysoldtoLAC.
Group prole
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BEREBY-FINANCES “BEFIN”
Sharecapital:CFA8,500,000,000
ThisIvoryCoastholdingcompanyholds73.16%ofSOGBand70.01%ofSCC.
SOCIETE DES CAOUTCHOUC DU GRAND BEREBY “SOGB”
Capital:CFA21,601,840,000
SOGBisactiveinIvoryCoastintheproductionandprocessingofpalmoilandrubber.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Palm 7,471 0 7,471
Rubber 11,413 4,752 16,165
18,884 4,752 23,636
Concessions:34,712ha
Permanent staff at 31
st
December2021:5,973
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Rubber 67,727 67,594
Palmoil 38,935 36,228
Turnover(EUR000) 126,646 101,350
Result(EUR000) 22,453 11,666
Average selling price (EUR / kg)
Rubber 1.30 1.10
Palmoil 0.93 0.70
Closing rate EUR / CFA 655.957 655.957
Key gures (CFA million)
At 31
st
December 2021 2020
Fixedassets 66,133 65,810
Current assets 30,876 26,252
Equity(*) 66,231 57,503
Debts,provisionsandthirdparties(*) 30,778 34,559
Resultfortheyear 14,728 7,653
Distribution 13,000 6,001
Socnafsindirectholding(%) 63.69 63.69
(*)Beforeprotallocation.
Group prole
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Socnaf S.A.
SUD COMOË CAOUTCHOUC “SCC”
Sharecapital:CFA964,160,000
SCCisactiveinIvoryCoastintheindustrialrubberprocessingsector.
Key data
Permanent staff at 31
st
December2021:383
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Rubber 39,273 35,882
Turnover(EUR000) 49,859 40,466
Result(EUR000) 5,340 4,379
Average selling price (EUR / kg)
Rubber 1.26 1.12
Rate EUR / CFA 655.957 655.957
Key gures (CFA million)
At 31
st
December 2021 2020
Fixedassets 4,102 4,502
Current assets 11,123 8,220
Equity(*) 7,800 7,297
Debts,provisionsandthirdparties(*) 7,426 5,425
Resultfortheyear 3,503 2,873
Distribution 2,500 3,000
Socnafsindirectholding(%) 60.95 60.95
(*)Beforeprotallocation.
Group prole
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PLANTATIONS SOCFINAF GHANA “PSG”
Sharecapital:GHS150,000,000
PSGisactiveinGhanaintheproductionofpalmoilandrubber.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Rubber 386 556 942
Palm 6,140 0 6,140
6,526 556 7,082
Concessions:18,303ha
Permanent staff at 31
st
December2021:708
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Rubber 347 0
Palmoil 27,538 18,892
Turnover(EUR000) 26,378 12,792
Result(EUR000)
11,249 -3,608
Average selling price (EUR / kg)
Rubber 1.13 0.00
Palmoil 0.93 0.67
Average rate EUR / GHS 6.87 6.42
Closing rate EUR / GHS 6.80 7.07
Key gures (GHS 000)
At 31
st
December 2021 2020
Fixedassets 475,665 487,593
Current assets 62,178 29,725
Equity(*) 225,168 147,879
Debts,provisionsandthirdparties(*) 312,675 369,438
Resultfortheyear 77,289 -23,155
Socnafsholding(%) 100 100
(*)Beforeprotallocation.
Group prole
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Socnaf S.A.
OKOMU OIL PALM COMPANY
Sharecapital:NGN476,955,000
OkomuisactiveinNigeriaintheproductionandprocessingofpalmoilandrubber.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Rubber 5,649 1,374 7,023
Palm 19,061 0 19,061
24,710 1,374 26,084
Concessions:33,113ha
Permanent staff at 31
st
December2021:427
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Rubber 9,285 7,341
Palmoil 46,429 45,445
Turnover(EUR000) 79,363 57,309
Result(EUR000) 23,977 18,084
Average selling price (EUR / kg)
Rubber 1.27 0.97
Palmoil 1.45 1.10
Average rate EUR / NGN 472 408
Closing rate EUR / NGN 468 466
Key gures (NGN 000)
At 31
st
December 2021 2020
Fixedassets 49,665,596 38,918,444
Current assets 15,674,442 15,672,994
Equity(*) 39,416,748 34,588,973
Debts,provisionsandthirdparties(*) 25,923,291 20,002,466
Resultfortheyear 11,316,334 7,387,384
Distribution 7,631,280 6,677,370
Grossdividendpershare(NGN) 8.00 7.00
Socnafsholding(%) 65.23 65.23
(*)Beforeprotallocation.
Group prole
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SOCAPALM
Sharecapital:CFA45,757,890,000
SocapalmisactiveinCameroonintheproductionandprocessingofpalmoilandthecultivationofrubbertrees.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Rubber 2,079 0 2,079
Palm 29,943 2,541 32,485
32,023 2,541 34,564
Concessions:58,063ha
Permanent staff at 31
st
December2021:2,553
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Palmoil 152,323 145,898
Rubber 2,030 308
Turnover(EUR000) 114,731 108,245
Result(EUR000) 20,617 17,959
Average selling price (EUR / kg)
Palmoil 0.74 0.74
Rubber 1.14 0.99
Rate EUR / CFA 655.957 655.957
Key gures (CFA million)
At 31
st
December 2021 2020
Fixedassets 72,086 73,508
Current assets 17,580 22,400
Equity(*) 71,120 75,098
Debts,provisionsandthirdparties(*) 18,546 20,810
Resultfortheyear 13,524 11,780
Distribution 15,600 17,502
Socnafsholding(%) 67.46 67.46
(*)Beforeprotallocation.
Group prole
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Socnaf S.A.
SOCIETE ANONYME FORESTIERE ET AGRICOLE “SAFA”
Sharecapital:EUR4,040,400
ThisFrenchcompanyowns68.93%ofSafacam
SAFACAM S.A.
Capital:CFA6,210,000,000
SafacamisactiveinCameroonintheproductionandprocessingofpalmoilandthecultivationofrubbertrees.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Rubber 3,318 1,107 4,426
Palm 5,251 76 5,327
8,569 1,183 9,752
Concessions:17,690ha
Permanent staff at 31
st
December2021:2,421
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Palmoil 16,945 16,543
Palmkerneloil 10,197 9,510
Rubber 6,919 5,276
Turnover(EUR000) 32,790 25,490
Result(EUR000) 3,778 1,037
Average selling price (EUR / kg)
PalmProducts 1.39 1.20
Rubber 1.33 1.07
Rate EUR / CFA 655.957 655.957
Key gures (CFA million)
At 31
st
December 2021 2020
Fixedassets 22,633 23,154
Current assets 9,184 6,552
Equity(*) 21,105 19,628
Debts,provisionsandthirdparties(*) 10,712 10,078
Resultfortheyear 2,478 680
Distribution 2,479 689
Socnafsindirectholding(%) 69.05 69.05
(*)Beforeprotallocation.
Group prole
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SOCIETE DES PALMERAIES DE LA FERME SUISSE «SPFS»
Sharecapital:CFA2,601,690,000
SPFSisa100%subsidiaryofSocapalm.SPFSisapalmoilreningcompany.
Key data
Permanent staff at 31
st
December2021:30
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Olein 8,431 5,405
Turnover(EUR000) 9,445 8,587
Result(EUR000) 500 16
Average selling price (EUR / kg)
Renedpackagedoil 1.44 1.44
Renedoilinbulk 1.23 1.06
Rate EUR / CFA 655.957 655.957
Key gures (CFA million)
At 31
st
December 2021 2020
Fixedassets 1,087 1,215
Current assets 2,462 1,861
Equity 2,834 2,506
Debts,provisionsandthirdparties 715 569
Resultfortheyear 328 10
Socnafsindirectholding(%) 67.46 67.46
Group prole
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Socnaf S.A.
AGRIPALMA
Sharecapital:STN156,094,090
AgripalmaisacompanyactiveintheproductionofpalmoilontheislandofSãoToméandPrincipe.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Palm 2,100 0 2,100
Concessions:4,917ha
Permanent staff at 31
st
December2021:268
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Palmoil 5,636 5,097
Turnover(EUR000) 4,777 3,828
Result(EUR000) -1,878 -2,175
Average selling price (EUR / kg)
Palmoil 0.85 0.75
Average rate EUR / STN 24.50 24.50
Closing rate EUR / STN 24.50 24.50
Key gures (STN million)
At 31
st
December 2021 2020
Fixedassets 728 766
Current assets 58 34
Equity 24 70
Debts,provisionsandthirdparties 762 730
Resultfortheyear -46 -53
Socnafsindirectholding(%) 88.00 88.00
Group prole
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BRABANTA
Sharecapital:CDF34,243,622,100
BrabantaisaCongolesecompany(DRC)activeintheproductionofpalmoil.
Key data
Area (hectares) Planted area
At 31
st
December 2021 Mature Immature Total
Palm 6,072 0 6,072
Concessions:8,689ha
Permanent staff at 31
st
December2021:2,584
Production and turnover Actual Actual
At 31
st
December 2021 2020
Production (tons)
Palmoil 15,993 20,438
Turnover(EUR000) 13,117 12,050
Result(EUR000) -2,202 -350
Average selling price (EUR / kg)
Palmoil 0.82 0.59
Average rate EUR / CDF 2,351 2,117
Closing rate EUR / CDF 2,265 2,420
Key gures (CDF million)
At 31
st
December 2021 2020
Fixedassets 140,846 113,254
Current assets 113,578 78,161
Equity(*) 71,047 43,168
Debts,provisionsandthirdparties(*) 183,377 148,246
Resultfortheyear -5,175 -741
Socnafsholding(%) 99.80 99.80
(*)Beforeprotallocation.
Group prole
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Socnaf S.A.
SOGESCOL FR
Sharecapital:CHF5,300,000
SogescolFRisaSwisscompanythatsellsrubberandpalmoil.
Thenancialyearendedon 31
st
December2021witha protofUSD6,056,903.TheBoard ofDirectorswill
proposetotheGeneralMeetingofShareholdersaprotdistributionofUSD6,000,000.
2021 2020
Average rate EUR / USD
1.18 1.15
Closing rate EUR / USD
1.13 1.23
Key gures (USD 000)
At 31
st
December 2021 2020
Fixedassets
1,034 1,088
Current assets
51,544 36,307
Equity(*)
14,940 13,484
Debts,provisionandthirdparties(*)
37,637 23,911
Resultfortheyear
6,057 3,759
Distribution
6,000 4,600
Grossdividendpershare(USD)
1,132 868
Socnafsholding(%)
50.00 50.00
(*)Beforeprotallocation.
Group prole
Socnaf S.A.
|
ANNUAL REPORT 2021
|
21
SOCFINCO FR
Sharecapital:CHF1,300,000
SocncoFRisaSwisscompany,whichprovidesservices,studiesandmanagementofagro-industrialplantations.
SocncoFRcoverstheagro-industrialsectorofpalmoilandrubber.
The nancial year ended 31
st
December 2021 shows a prot of EUR 6,288,105. The Board of Directors will
proposetotheGeneralMeetingofShareholdersaprotdistributionofEUR8,000,000.
Key gures (EUR million)
At 31
st
December 2021 2020
Fixedassets 5,974 7,087
Current assets 19,609 12,579
Equity(*) 15,598 11,310
Debts,provisionsandthirdparties(*) 9,985 8,356
Salesandservices 25,179 19,933
Resultfortheyear 6,288 1,535
Distribution 8,000 2,000
Grossdividendpershare(EUR) 6,154 1,538
Socnafsholding(%) 50.00 50.00
(*)Beforeprotallocation.
22
|
ANNUAL REPORT 2021
|
Socnaf S.A.
1. Rubber
SGX - NATURAL RUBBER - 5 years +
SGX - NATURAL RUBBER - 1 year +
International market for rubber and palm oil
50
100
150
200
250
300
50
100
150
200
250
300
201 7
201 8
201 9
202 0
202 1
$ct/Kg
SGX - NATURAL RUBBER - 5 YEARS +
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
$ct/Kg
SGX - NATURAL RUBBER - 1 YEAR +
R S S3
TSR20
feb 2021
mar 2021
apr 2021
may 2021
jun 2021
jul2021
aug2021
sep 2021
oct 2021
nov 2021
dec2021
International market for rubber and palm oil
Socnaf S.A.
|
ANNUAL REPORT 2021
|
23
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
is1,417EUR/tonagainst1,154EUR/tonfortheyear
2020,i.e.anincreaseof23%.
The rise in natural rubber prices, which started at
thebeginning ofthesecondhalfof2020,continued
duringtherstquarterof2021.Pricesbrieyreached
USD2,000/tonattheendofFebruarybeforecorrecting
following the Chinese government’s announcement
thatitwouldcontroltheriseinrawmaterials.
In the second half of the year, prices stabilised at
betweenUSD1,600and1,800/ton,leavingthisprice
rangeonlyonveryrareoccasions.
Therecoveryindemandforrubberencouragedbythe
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,theappearanceoftheDeltavariantinthe
springandtheOmicronvariantintheautumn,which
imposed new containment measures or mobility
restrictionsonthevariousstates,limitedtherisein
naturalrubberprices.
The various sanitary measures also affected rubber
production by limiting tappers’ access to certain
producing countries such as Thailand and Malaysia.
ThedevelopmentofarubbertreediseaseinIndonesia
has also limited deliveries from the world’s second
largestproducer.
Logistical disruptions due to lack of space on ships
from Asia have caused disruptions in the supply of
naturalrubbertotyremanufacturers’factoriesinthe
USandEurope.Thesharpincreaseinfreightratesout
ofSouthEastAsiahasgreatlybenetedAfricannatural
rubberproducersintermsofdemandandvalorisation.
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
effectonrubberprices.Thehighlycontagiousnature
of the Omicron variant has caused large waves of
quarantine,preventingtyrefactoriesfromoperating
atfullcapacityduetoalackofworkers.
InitslatestforecastsdatedDecember2021,theIRSG
(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 world production decit of 90,000
tons,forthersttimesince2016.
Worldnaturalrubberconsumptionin 2021exceeded
pre-covid levels in 2019 while world production in
2021wouldbealmostidenticalto2019.
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
beaffectedbyproblemsrelatedtotheavailabilityof
labourinplantationsandrubberdiseasesinIndonesia.
However,theshortageofsemiconductorsduetothe
freightcrisiscontinuestoimpacttheproductionlines
of car manufacturers and consequently slows down
thedemandforrubberfororiginalequipmenttyres.
HistoricallyhighfreightratesoutofSouth-EastAsiaare
expectedtopersistthroughout2022duetothelack
ofavailablevesselcapacitywithareturntonormalcy
expected,atbest,during2023.Inthiscontext,since
thebeginningoftheyear,Africanrubbercontinuesto
maintainaclearcompetitiveadvantageoveritsAsian
competitorsand,withtheapproachofthewintering
International market for rubber and palm oil
24
|
ANNUAL REPORT 2021
|
Socnaf S.A.
period,benets fromsubstantial premiumsoverthe
Singaporereferencemarketonapprovedgrades.
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
invasionofUkrainepushingoilaboveUSD100/barrel
and fears of disrupting supplies of synthetic rubber
fromRussiasupportednaturalrubberprices.
Asin 2021,Chinacould interveneinthe marketsto
avoidtoolargeincreasesincommoditypricesanda
negativeimpactonitseconomicgrowth.
The geopolitical context linked to the Russian-
Ukrainian conict will inuence commodity prices,
includingnaturalrubber.Intheeventofaprolonged
conictimpactingtheglobaleconomicrecovery,the
riskof“stagation”combininghighinationwithlow
economicgrowthisrealandcouldweightonrubber
prices.Tyrefactoriesmayreduceproductionduetoa
lackofrawmaterialsfortyreproduction.
Uncertaintyrelatedtotheevolutionofthepandemic
will continue to inuence the evolution of rubber
pricesinrelationtotheeffectivenessofvaccination
policiesintheworld,theemergenceofnewvariants
and a possible deterioration of the health situation
thatmayaffectmobility.
AccordingtoIRSGforecasts,globalconsumptionand
productionwouldbealmostinbalancein2022.World
supplyofnaturalrubberwouldamountto14.27million
tons(+3.5%comparedto2021)andglobaldemandto
14.29milliontons(+3%comparedto2021).TheIRSG
forecastsaproductiondecitof21,000tonsin2022
comparedwith90,000tonsin2021.
The TSR20 1
st
positionFOBSingaporeonSGXisquoted
on 9
th
March2022atUSD1,803/ton.
International market for rubber and palm oil
Socnaf S.A.
|
ANNUAL REPORT 2021
|
25
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
2017
2018
2019
2020
2021
$/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
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
$/Mton
CIF ROTTERDAM - PALM OILS - 10 YEARS +
CPO
P KO
200
400
600
800
1.000
1.200
1.400
2017
2018
2019
2020
2021
$/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
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
$/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
2017
2018
2019
2020
2021
$/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
$/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
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
$/Mton
CIF ROTTERDAM - PALM OILS - 10 YEARS +
CPO
P KO
200
400
600
800
1.000
1.200
1.400
2017
2018
2019
2020
2021
$/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
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
$/Mton
CPO CIF ROTTERDAM - PALM OILS - 10 YEARS +
mar 2021
apr 2021
may 2021
jun 2021
jul2021
aug2021
sep 2021
oct 2021
nov 2021
dec2021
International market for rubber and palm oil
26
|
ANNUAL REPORT 2021
|
Socnaf S.A.
World palm oil production in million of tons
(source:OilWorld)
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 million of tons
(source:OilWorld)
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
Palmkernel 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
TheaverageCIF Rotterdam crudepalmoil pricefor
2021 is USD 1,195/ton compared to USD 715/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.
Fromthesecondhalfof2020onwards,palmoilprices
experienced a spectacular rebound which continued
throughout2021.
Indeed, the pandemic and lockdown measures have
also impacted the global supply of palm oil. Trafc
restrictionshaveledtolabourshortagesinsomeparts
ofSoutheastAsia hampering theharvestingprocess.
Asaresult,foreignworkers,whoaccountfornearly
70% of the labour force in plantations in Malaysia,
wereunabletotraveltothecountry,whichseverely
disruptedharvestoperations.
In addition, there is a drop in yields caused by a
reductionintheuseoffertilisersandbythepossible
ageing of certain orchards, a direct consequence of
thelowpricelevelsofrecentyears.
Thiscontraction insupply,combinedwitha massive
return in demand following lockdowns, has led to a
verysignicantriseinpalmoilprices.ThepriceofCIF
RotterdampalmoilhasrisenfromUSD500/toninMay
2020tooverUSD1,300/toninMay2021,anincrease
of160%inoneyear.
Duringthisperiod, palm oilalsobeneted from the
riseinsoybeanprices,drivenbyverystrongdemand
from China for American soybeans. At the same
time, palm oil exports to India, China and Pakistan
intensied,increasingpressureonproducercountries’
stocks.
However, prospects for higher production, slower
exports and lower soybean prices caused palm oil
prices to fall in June. The CIF Rotterdam CPO was
closetoUSD1,000/ton.
International market for rubber and palm oil
Socnaf S.A.
|
ANNUAL REPORT 2021
|
27
ConcernsaboutlabourshortagesinMalaysiaandthe
releaseoflowerthanexpectedproductionforecasts
forthesecondhalfoftheyearcausedpricestorise
againinJuly.
On 31
st
December 2021,the CIFRotterdamCPOwas
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
productionincreasedin2021toaround 76.4 million
tons. The increase should continue in 2022 with
production expected to be close to 80 million tons,
accordingtoanalysts.
Indeed,theincreaseduseoffertilisers(favouredby
the more remunerative prices of recent months),
andtheliftingoftrafcrestrictionsallowingareturn
of labour to the elds, should improve yields and
increaseproduction.
However, there are several uncertainties about
the recovery of palm oil production. The Malaysian
authorities have been working on a plan to speed
upthe returnofforeignworkersto theplantations,
but questions remain about its implementation. In
addition,soaringfertiliserpricesandlongerdelivery
timescouldlimittheexpectedincreaseinyields.
Indonesia,theworld’slargestproducerandexporter,
isconcernedaboutitsdomesticmarketandtherefore
decidedattheendofJanuarytorestrictitspalmoil
exports, while global demand is rising. Tight supply
contributedto anacceleration ofthepriceincrease
inFebruary.
AttheendofFebruary,theRussian-Ukrainianconict
putthevegetableoilmarketonedge.Ukrainealone
supplies more than 50% of the world’s sunower
oil production for food and biofuels. The conict is
thereforecausinggreatuncertaintyaboutthesupply
ofsunoweroil,leadingbuyerstoturntoalternative
vegetable oils: soya, rapeseed, palm, whose prices
havesoared.
At the beginning of March, the CPO CIF Rotterdam
broke through the historic threshold of USD 2,000/
ton,anincreaseofnearly50%sincethebeginningof
the year.
The global supply of vegetable oils on the markets
shouldthereforeplayadecisiveroleintheevolution
ofpalmoilpricesin2022.Soaringoilprices,witha
barrelpassingtheUSD100markinearlyMarch,also
makepalmoilmoreattractiveasarawmaterialfor
biodiesel.
Finally, the fears linked to the pandemic have not
beenfullyaddressed.Theemergenceofnewvariants
ortheintroductionofnewrestrictionscannotberuled
out and could once again upset the fundamentals,
impactingsupplyaswellasdemand.
ThepriceofCIFRotterdamcrudepalmoilon9
th
March
2022wasaroundUSD2,000/ton.
28
|
ANNUAL REPORT 2021
|
Socnaf S.A.
On 30
th
March, 2022, the Group approved the update of its responsible management policy renewed and
reinforcedin2021inordertocomplywiththeGPSNR(GlobalPlatformforSustainableNaturalRubber)policy.
ThisresponsiblemanagementpolicyisbasedontheGroup’sthreepillarsofcommitment,alongsideitsspecic
commitmenttotransparency:ruraldevelopment,workersandlocalcommunities,andtheenvironment.These
commitmentsformthebasisofkeyinitiativesaimedatimprovinglong-termeconomicperformance,socialwell-
being,health,safetyandnaturalresourcemanagement.
Animplementationplanforthispolicyhasbeendenedandimplementedthroughout2021.
TheeffortsandactionsundertakenbytheSocnGroupinthisareaaredetailedinaregularlyupdateddashboard
aswellasinaseparateannualreport(“SustainableDevelopmentReport”).
Theresponsiblemanagementpolicy,thedashboardandtheannualsustainabledevelopmentreportareavailable
ontheGroup’swebsite.
Environment and social responsibility
Socnaf S.A.
|
ANNUAL REPORT 2021
|
29
1. Activity indicators
Area (hectares) Rubber Palm
At 31
st
December 2021
Immatures(byyearofplanting)
2021 622
1,480
2020 1,000
1,105
2019 1,373
32
2018 2,189 0
2017 1,909 0
2016 1,479 0
2015 1,233 0
2014 980 0
2013 186 0
2012 172 0
2011 110 0
2010
16
Total immatures 11,270 2,617
Young (from8to11years) 12,528 (from4to7years) 25,707
Matured (from12to22years) 15,157 (from8to18years) 36,862
Old (above22years) 8,984 (above18years) 25,818
Total in production 36,669
88,387
TOTAL 47,940
91,004
Area (hectares) 2021 2020 2019 2018 2017
Palm 91,004 91,207 91,220 91,099 88,994
Rubber 47,940 48,146 48,361 48,071 47,890
TOTAL 138,944
139,353 139,581 139,170 136,884
Production 2021 2020 2019 2018 2017
Palm oil (tons)
355,924 321,348 278,979 262,075 235,656
Ownproduction 309,149 285,726 244,551 231,522 210,927
Thirdpartypurchases 46,775 35,623 34,428 30,554 24,730
Rubber (tons)
151,848 144,456 147,851 129,703 114,969
Ownproduction 55,450 48,972 53,749 47,753 48,672
Thirdpartypurchases 96,397 95,484 94,102 81,950 66,297
Seeds (thousands) 3,362 1,413
Ownproduction 3,362 1,413
Key gures
30
|
ANNUAL REPORT 2021
|
Socnaf S.A.
Key gures
Turnover (EUR million) 2021 2020 2019 2018 2017
Palm 327 241 210 206 192
Rubber 196 157 163 136 155
Otheragriculturalproducts 1 1 0 0 0
Other 3 4 3 3 3
TOTAL
527 403 376 345 350
Staff 2021 2020 2019 2018 2017
Averageworkforce
24,596 23,291 24,166 22,707 22,113
2. Key gures in the consolidated income statement and the cash ow
statement
(EUR million) 2021 2020 2019 2018 2017
Turnover 527 403 376 345 350
Operatingincome 143 56 47 42 75
ResultoftheyearattributabletotheGroup 72 -4 4 5 22
Operatingcashow 154 91 65 91 123
Freecashow(*) 93 30 9 6 44
(*)Freecashow=cashowfromoperatingactivities+cashowfrominvestingactivities.
3. Key gures in the consolidated statement of nancial position
(EUR million) 2021 2020 2019 2018 2017
Bearerbiologicalassets 366 364 405 405 379
Other non-current assets 316 290 304 302 280
Current assets 209 171 169 140 128
Totalequity 436 334 385 383 371
Non-currentliabilities 274 182 197 142 151
Currentliabilities 180 310 298 323 265
Socnaf S.A.
|
ANNUAL REPORT 2021
|
31
(EUR) 2021 2020 2019 2018 2017
Number of shares 17,836,650 17,836,650 17,836,650 17,836,650 17,836,650
Equityattributabletotheownersofthe
Company 315,276,676 224,895,450 272,328,282 272,815,410 263,538,857
Undilutednetprotpershare
4.04 -0.22 0.22 0.27 1.23
Dividendpershare 0.00 0.00 0.00 0.00 0.10
Share price
Minimum 8.10 7.00 8.2 10.90 15.61
Maximum 12.40 12.60 12.2 16.90 19.75
Closing 12.00 11.10 12 11.40 16.10
Marketcapitalisation(*) 214,039,800 197,986,815 214,039,800 203,337,810 287,170,065
Dividendpaid/netprotattributabletothe
owners of the Company
N.a. N.a. N.a. N.a. 8.13%
Dividends/marketcapitalisation N.a. N.a. N.a. N.a. 0.62%
Marketprice/undilutednetprotpershare 2.97 -51.03 55.60 42.68 13.09
(*)Marketcapitalisationiscalculatedbymultiplyingthenumberofsharesbytheclosingshareprice.
•LiquidationofGaummes,SocnGreenEnergyandSocnResearch.
Financial highlights of the year
Stock market data
32
|
ANNUAL REPORT 2021
|
Socnaf S.A.
Corporate governance statement
1. Introduction
Socnafpayscloseattentiontotheevolutionoftheten
principlesofcorporategovernanceoftheLuxembourg
StockExchange.Itcommitstoprovidethenecessary
explanations for a comprehensive understanding on
how the Company functions.
Corporate governance is a set of principles and
ruleswhosemainobjectiveistocontribute tolong-
termvaluecreation.ItallowstheBoardtopromote
the interests of the Company and its shareholders
while putting in place effective control systems,
managementofrisksandconictsofinterests.
2. Corporate governance chart
TheBoardofDirectorsadopted the Corporate governance chart on21
st
November2018.Itwas updated on
30
th
March2022andisavailableontheGroup’swebsite.
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)
AGM1981 AGM2022
Mr.VincentBolloré French 1952 Director
(a)
AGM1993 AGM2023
BolloréParticipationsSE
representedbyMr.CyrilleBolloré
French 1985 Director
(a)
AGM2018 AGM2024
Mr.GbengaOyebode Nigerian 1959 Director
(a)
AGM2011 AGM2023
Mr.FrançoisFabri Belgian 1984 ManagingDirector
(b)
AGM2014 AGM2026
Mr.PhilippeFabri Belgian 1988 Director
(b)
AGO 2020 AGO 2026
Mr.FrédéricLemaire Belgian 1970 Director
(c)
AGM2019 AGM2025
(a)Non-ExecutiveDependentDirector
(b)ExecutiveDependentDirector
(c)IndependentDirector
The term served as director by Mr. Hubert Fabri
expires this year. It will be proposed at the next
AnnualGeneralMeetingtorenewthismandateforsix
yearsuntiltheAnnualGeneralMeetingof2028.
Ontheotherhand,theBoardofDirectorstakesnote
oftheresignationofMr.PhilippedeTraux,Fulgence
KoffyandLucBoedtfromtheirmandateasDirector.
It will not be proposed to the General Meeting to
providefortheirreplacement.
Corporate governance statement
Socnaf S.A.
|
ANNUAL REPORT 2021
|
33
Other mandates held by the Directors in listed companies
Hubert Fabri
Chairman
Positions and ofces held in Luxembourg companies
• ChairmanandDirectoroftheBoardofDirectorsofSociétéFinancièredesCaoutchoucs“Socn”,Socnaf
andSocnasia.
Ofces and positions 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”, Société desCaoutchoucsduGrandBereby“SOGB”andSociété Camerounaise de Palmeraies
“Socapalm”.
Bolloré Participations
Director
Positions and ofces held in Luxembourg companies
• DirectorofSocnaf.
Positions and ofces held in foreign companies
• MemberoftheSupervisoryBoardofCompagnieduCambodge;
• DirectorofBolloréSE,CompagniedesTramwaysdeRouen,SociétédesCheminsdeFeretTramwaysduVar
etduGard,SociétédesCaoutchoucsduGrandBereby“SOGB”,SociétéIndustrielleetFinancièredel’Artois,
FinancièreMoncey,S.A.F.A.Cameroon“Safacam”andSociétéCamerounaisedePalmeraies“Socapalm”.
Gbenga Oyebode
Director
Positions and ofces held in Luxembourg companies
• DirectorofSocnaf.
Positions and ofces held in foreign companies
• ChairmanofOkomuOilPalmCompanyandPZCussonsNigeria;
• DirectorofNestléNigeriaandLafargeAfrica.
Corporate governance statement
34
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ANNUAL REPORT 2021
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Socnaf S.A.
François Fabri
Managing 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”andSociétéCameroonaisedePalmeraies“Socapalm”.
Philippe Fabri
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”.
Frédéric Lemaire
Director
Positions and ofces held in Luxembourg companies
• DirectorofSocnaf.
Corporate governance statement
Socnaf S.A.
|
ANNUAL REPORT 2021
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35
Appointments of Directors
The Board of Directors proposes the appointment
of the Directors at the Annual General Meeting of
shareholders. It species the term of service and
veries that the Director meets the criteria for
independence.
Intheeventofavacancyduetodeathorfollowingthe
resignation of one ormoreDirectors,theremaining
Directors will proceed to temporary co-optations.
Theseco-optationswillbesubjecttotheapprovalof
theAnnualGeneralMeetingatitsnextmeeting.The
Director appointed to replace another Director will
completethetermofhispredecessor.
Role and powers of the Board of Directors
The Board of Directors is the body responsible for
themanagementoftheCompanyandthecontrolof
day-to-daymanagement.Itactsintheinterestofthe
Company.
TheBoardofDirectorsensuresthatallnancialand
human resources are available and ensures that all
the necessary structures are in place to achieve its
objectivesandensurelong-termvaluecreation.
The Articles of Association empower the Board of
Directorsthepowertoperformallactionsnecessary
to achieve the corporate purpose.
Activity report of the Board of Directors
Number of meetings
Atleasttwofortheyear-endandmid-yearevaluations.
Duringthe2021nancialyear,theBoardofDirectors
met 4 times.
Topics generally discussed
Periodicaccountingsituations;
Portfoliomovements;
Inventoryandvaluationoftheportfolio;
Evolutionofsignicantholdings;
Managementreport;
Investmentprojects;
Corporate,socialandenvironmentalresponsibility.
Average attendance rate of Directors
-2021:83%
-2020:85%
-2019:71%
-2018:84%
-2017:78%
4. Committees of the Board of Directors
4.1. Audit Committee
The Committee is composed of three members, of
which2areindependentsandoneofthemassigned
asPresidentoftheAuditCommittee.Themembersof
theAuditCommitteeareappointedforoneyearand
areeligiblefor re-election.ThisAudit Committeeis
effective as of 1
st
January2022andhasbeenincharge
ofthesupervisionofthepreparationofthenancial
information for the year 2021.
The Board of Directors has proposed that it will be
constitutedasfollows:
• Mr.FrédéricLemaire(IndependentDirector)
-President
• Mrs.ValérieHortefeux(Independentmember)
• Mr.PhilippeFabri(Director)
Corporate governance statement
36
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ANNUAL REPORT 2021
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Socnaf S.A.
Theappointmentofthenon-executivememberswill
beconrmedattheGeneralMeetingofShareholders
on 31
st
May2022.
TheAuditCommitteewillassisttheBoardofDirectors
in its supervisory function and is responsible of the
monitoring of the nancial reporting, the audit
process,theanalysisandcontrolofnancialrisks.
TheAuditCommitteeshallmeetthreetimesayear.
4.2. Appointment and Remuneration Committee
Theremunerationoftheoperationalmanagementof
Socnafissetbytheprincipalshareholders.TheBoard
ofDirectorsdoesnotconsideritnecessarytosetup
a Remuneration Committee. Similarly, for practical
reasonsandduetothesizeoftheCompany,theBoard
of Directors has chosen not to set up a Nomination
Committee.
5. Remunerations
The remuneration allocated to the members of
the Board of Directors of Socnaf for the nancial
year 2021 amounts to EUR 863,648 compared to
EUR890,630forthenancialyear2020.
The Directors of Socnaf did not receive any other
paymentinshares(stockoptions).
6. Shareholding status
On 31
st
December2014,Socnafissued1,474,200new
shareswhichbringstoatotalof17,854,200numberof
sharesissued.Allstatementsledbetween
1
st
July 2011 and 31
st
December 2014 relate to the
previousnumberofsharesinplaceandtheprevious
numberofvotingrights,i.e.16,380,000.
Shareholder
Number of shares held =
Number of voting rights Percentage holding
Date of
notication
Socn
L-1650 Luxembourg
10,497,046 58.85 01/02/2017
Bolloré(a)
F-29500ErguéGaberic
80,642 0.49(b) 03/09/2014
CompagnieduCambodge(a)
F-92800Puteaux
1,157,929 7.07(b) 03/09/2014
SociétéIndustrielleetFinancièredel’Artois(a)
F-92800Puteaux
176,636 1.08(b) 03/09/2014
CompagniedesGlénans(a)
F-29500ErguéGaberic
58,993 0.36(b) 03/09/2014
Total Bolloré (all categories combined, based
on aggregate voting rights)
1,474,200 9.00 (b)
(a)=entitiescontrolledbyVincentBolloré.
(b)=beforeincreaseinsharecapitalon31
st
December2014
Corporate governance statement
Socnaf S.A.
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ANNUAL REPORT 2021
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37
7. Financial calendar
31
st
May2022 AnnualGeneralMeetingat10a.m.
EndofSeptember2022 Halfyearstandaloneandconsolidatedresultsasat30
th
June2022
Mid-November2022 InterimManagementstatementfor3
rd
quarterof2022
EndofMarch2023 Annualstandaloneresultsasat31
st
December2022
Mid-April2023 Consolidatedannualresultsasat31
st
December2022
Mid-May2023 InterimManagementstatementforthe1
st
quarterof2023
30
th
May2023 AnnualGeneralMeetingat10a.m.
TheresultsoftheCompanyarepublishedonthewebsiteoftheLuxembourgStockExchangewww.bourse.lu
undertheheading“OAM”andonthewebsiteoftheCompanywww.socn.com.
8. External audit
Independent statutory auditor (Réviseur
d’entreprises agréé)
Ernst&Young“EY”
35EAvenueJohnF.Kennedy
L-1855Luxembourg.
In2021,theauditfeesamountedtoEUR683,798VAT
included.
Theauditfeesincludeallfeespaidtotheindependent
statutoryauditoroftheGroup,aswellasthosepaid
tomemberrmswithintheirnetworkfortheyear.No
consultingworkorothernon-auditserviceshavebeen
performedbythosecompaniesin2021.
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
isbasedontheGroup’sthreepillarsofcommitment,
alongside its specic commitment to transparency:
rural development, workers and local communities,
and the environment. These commitments form the
basisofkeyinitiativesaimedatimprovinglong-term
economic performance, social well-being, health,
safetyandnaturalresourcemanagement.
An implementation plan for this policy has been
denedandimplementedthroughout2021.
The efforts and actions undertaken by the Socn
Groupinthisareaaredetailedinaregularlyupdated
dashboard as well as in a separate annual report
(“SustainableDevelopmentReport”).
The responsible management policy, the dashboard
and the annual sustainable development report are
availableontheGroup’swebsite.
10. Other information
PursuanttotheRegulation2016/347oftheEuropean
Commission of 10
th
March 2016 specifying the
modalitiesforupdatinginsiderlists,alistofinsiders
has been drawn up and is updated continuously.
Thepersonsconcernedhave been informedoftheir
inclusiononthislist.
38
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ANNUAL REPORT 2021
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Socnaf S.A.
Statement of compliance
Mr.PhilippeFabri,DirectorandMr.DanielHaas,ChiefFinancialOfcer,indicatethat,totheirknowledge:
(a)theconsolidatednancialstatementspreparedfortheyearendedasat31
st
December2021,inaccordance
withtheInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion,provideatrueand
fairviewoftheassetsandliabilities,thenancialpositionandtheprotsorlossesattributabletoSocnaf
andalloftheentitiesincludedinconsolidation,and
(b)themanagementreportfairlypresentstheevolutionandresultsoftheCompany,thenancialpositionofthe
Groupandalltheentitiesincludedintheconsolidationandadescriptionofthemainrisksanduncertainties
they face.
Socnaf S.A.
|
ANNUAL REPORT 2021
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39
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
LadiesandGentlemen,
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated nancial statements as at
31
st
December 2021 include the nancial statements
of Socnaf, all subsidiaries and direct and indirect
associate companies, the details of which are given
in Note 2 of the notes to the consolidated nancial
statements.
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. Socnaf (the
Group) adopted IFRS standards for the rst time in
2005andallthestandardsapplicabletotheGroupof
31
st
December2021havebeenimplemented.
Consolidated results
For the 2021 nancial year, the result attributable
to the Group of the parent company amounted to
EUR72.0millioncomparedtoEUR-3.9millionin2020.
ThisresultsinearningspershareofEUR4.04compared
to EUR -0.22 in 2020.
ConsolidatedrevenueamountedtoEUR526.7millionin
2021comparedtoEUR402.6millionin2020(increase
ofEUR124.1million).Thisincreaseinrevenueismainly
duetotheincreaseinpriceforEUR123.1millionandin
quantitiessoldforEUR23.6million,slightlydecreased
bytheexchangedifferencesforEUR-17.8million.
Likewise, theoperatingprotincreasedto EUR 142.9
million,comparedtoEUR56.3millionin2020.
Other nancial income amounted to EUR 6.3 million
compared to EUR 3.0 million in 2020 and consisted
mainly of foreign exchange gains of EUR 3.7 million
comparedtoEUR2.7millionin2020.
Financial expenses amounted to EUR 22.4 million
compared to EUR 27.7 million in 2020 and consisted
mainly of interest expense for EUR 14.9 million
(EUR16.9millionin2020)andforeignexchangelosses
ofEUR6.9million(EUR9.6millionin2020).
Thetaxexpenseincreased.Incometaxesamountedto
EUR28.9millioncomparedtoEUR20.3millionin2020.
Prot for the year from associates attributable to
the Group increased to EUR 7.3 million compared to
EUR1.3millionin2020.
Consolidated statement of nancial position
TheassetsofSocnafconsistof:
- Non-current assets of EUR 681.6 million compared
to EUR 654.6 million in 2020, an increase of
EUR27.0millionmainlyduetotheproperty,plant
andequipmentforEUR22.7million;
- Current assets amounted to EUR 208.9 million
comparedtoEUR171.4millionin2020,anincrease
of EUR 37.5 million, mainly due to the increase in
cashowsfor EUR 27.7millionandin the valueof
inventoryforEUR10.3million.
Shareholders’ equity amounted to EUR 315.3 million
comparedtoEUR 224.9 millionin2020.Thisincrease
in shareholder’s equity of EUR 90.4 million is mainly
duetotheprotfortheperiod:EUR72.0million(2020:
EUR-3.9 million) and to the change in the translation
reserve(EUR16.9million).
Onthe basisof consolidatedshareholders’equity,the
net value per share attributable to the Group was
EUR17.68comparedtoEUR12.61ayearearlier.Asat
31
st
December2021,thesharepricestoodatEUR12.0.
Current and non-current liabilities decreased to
EUR454.0millioncomparedtoEUR492.0millionayear
earlier.
FinancialdebtsdecreasedtoEUR270.3millionin2021
comparedtoEUR296.8millionin2020.Thismainlyconsist
Consolidated management report
40
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ANNUAL REPORT 2021
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Socnaf S.A.
Consolidated management report
ofloanstoSocnaffromSocnforEUR196.5million,
aswellasthenoncurrentandcurrentportionofbank
loansforanamountofEUR62.3million.
Deferred tax liabilities slightly increased to
EUR 11.4 million compared to EUR 9.8 million in
2020, and current tax liabilities also increased to
EUR30.4millioncomparedtoEUR20.9millionin2020.
Other liabilities include short-term advances from
shareholdersamountingtoEUR40.4millionaswellas
cashpoolingadvancesofEUR2.3million.
Consolidated cash ows
As at 31
st
December 2021, cash and cash equivalents
amountedtoEUR56.1million,anincreaseofEUR24.7
millionfortheyearcomparedtoanincreaseofEUR2.4
millioninthepreviousnancialyear.
Net cash ow from operating activities amounted to
EUR 154.3 million during the nancial year 2021
(EUR 91.4 million in 2020). It resulted mainly
from self-nancing capacity of EUR 175.4 million
(EUR103.4millionin2020),EUR28.9millionofincome
tax paid and EUR 6.9 million decrease in working
capital.
Net cash ow from investing activities amounted to
EUR 61.4 million (EUR 61.1 million in 2020). These
activities are largely inuenced by acquisitions of
tangible xed assets amounting to EUR 62.9 million
(EUR62.0millionin2020).
Cash ow from nancing activities amounted
EUR68.7million(EUR24.8millionin2020),mainlydue
tonetreimbursementofborrowingsforEUR33.8million
(compared to a net increase of borrowings in 2020
for EUR 3.7 million) and to the dividends paid for
EUR18.6million(EUR10.1millionin2020).
FINANCIAL INSTRUMENTS
Financialriskmanagementpoliciesaredescribedinthenotestotheconsolidatednancialstatementsofthe
Company(seeNotes24and33).
OUTLOOK FOR 2022
Theresultsforthenextnancialyearwilldependtoa
largeextentonfactorsexternaltothemanagementof
theGroup,namelythepoliticalandeconomicconditions
inthecountrieswherethesubsidiariesareestablished,
thedevelopmentofthepriceofrubberandpalmoiland
theevolutionoftheUSdollaragainsttheeuro.TheGroup,
forits part,pursues itspolicy ofkeeping costprices as
lowaspossibleandimprovingitsproductioncapacity.
POLITICAL AND ECONOMIC ENVIRONMENT
TheCompanyholdsinterestsinsubsidiariesoperating
inAfrica.Giventheeconomicandpoliticalinstability
insomeoftheAfricancountries(SierraLeone,
Liberia,IvoryCoast, Ghana,Nigeria,Cameroon, São
ToméandDRC),theseholdingspresentariskinterms
ofexposuretopoliticalandeconomicchanges.
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.
Announcementsofpotentialadditionalsanctionshave
beenmadefollowingmilitaryoperationsinitiatedby
RussiaagainsttheUkraineon24
th
February2022.
Due to the growing geopolitical tensions, since
February2022,therehasbeenasignicantincrease
involatilityonthesecuritiesandcurrencymarkets,as
Consolidated management report
Socnaf S.A.
|
ANNUAL REPORT 2021
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41
wellasasignicantdepreciationoftherubleagainst
theUSdollarandtheeuro.Itisexpectedthatthese
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
Directorscontinuestomonitortheevolvingsituation
anditsimpactonthenancialpositionandresultsof
the company.
IMPACT OF THE COVID-19 CRISIS
In2020,inadditiontothesanitarymeasurestakenand
describedintheSustainableDevelopmentReport,the
Grouphadlimitedthetappingofrubbertreesofthe
mostproductiveplotsatthebeginningoftheCovid-19
crisis.In2021, thetappingof rubbertrees onthese
siteswasrestarted.
This health crisis had no impact on the palm oil
business.
ThenancialforecastsoftheCompanyanditsdirect
andindirectsubsidiariesfortheyears2022and2023,
and 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
obligationsandensurethegoingconcernofoperations.
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.
Furtherinformationonhowtherulesareimplemented
isavailableinthecorporategovernancestatementin
theannual reportandin themanagement reporton
theCompany’sstandalonenancialstatements.
GENERAL INTERNAL CONTROL SYSTEM ADAPTED TO THE GROUP’S SPECIFIC
ACTIVITIES
Segregation of functions
The segregation of operational, commercial and
nancialfunctionsimplementedateachlevelofthe
Groupreinforcestheindependenceofinternalcontrol.
These different functions ensure the completeness
andreliabilityoftheinformationwhichiswithintheir
areasofresponsibility.Theyprovideregularupdates
ofthecompletenessofinformationtolocalmanagers
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
managementoftheirrisks.
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
centralisedattheGroup’sheadquarters.Itcontributes
tothesmoothrunningofaneffectiveinternalcontrol
systemthroughtheindependenceofrecruitment,the
harmonisation of the segregated functions, annual
evaluationsandtrainingprograms.
The operational, commercial and nancial functions
centrallydeneasetofstandardreportswhichensure
Consolidated management report
42
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ANNUAL REPORT 2021
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Socnaf S.A.
the homogeneity of the presentation of information
originatingfromthesubsidiaries.
Treasury reporting process
The treasury department organises, supervises and
controlsthereportingofdailyinformationandweekly
indicators of the subsidiaries and, in particular, the
cashowposition,theevolutionofnetdebtandthe
expensesrelatedtotheinvestments.
Financial reporting process
The nancial department organises, supervises
and controls the reporting of monthly accounting,
budgetary and nancial information and distributes
condensedreportsforusebytheGroup’soperational
management.
Twiceperyear,itincludesthisinformationinthelong-
term development plan of the subsidiaries. It also
ensurestheimplementationofthenancialdecisions
takenbytheBoardofDirectorsofthesubsidiaries.
Preparation of consolidated accounts
The consolidated nancial statements are prepared
onahalf-yearlybasis.They areaudited annuallyby
the external auditors as part of a nancial audit of
subsidiaries,whichcoversboththestatutoryaccounts
oftheentitiesinthescopeofconsolidationandthe
consolidatednancialstatements.
Once approved by the Board of Directors, they are
published.
The consolidation department of the Group
guarantees homogeneity and treatment monitoring
forallcompanieswithinthescopeofconsolidation.It
strictlyadherestotheaccountingstandardsinforce
relatingtoconsolidationoperations.Itusesastandard
consolidation tool to ensure the secure processing
of information feedback from subsidiaries, the
transparencyandrelevanceofautomaticconsolidation
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,theconsolidationservicecentralises
the adjustments specic to the valuation rules
applicabletotheconsolidatednancialstatements.
ENVIRONMENT AND SOCIAL 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
isbasedontheGroup’sthreepillarsofcommitment,
alongside its specic commitment to transparency:
rural development, workers and local communities,
and the environment. These commitments form the
basisofkeyinitiativesaimedatimprovinglong-term
economic performance, social well-being, health,
safetyandnaturalresourcemanagement.
An implementation plan for this policy has been
denedandimplementedthroughout2021.
The efforts and actions undertaken by the Socn
Groupinthisareaaredetailedinaregularlyupdated
dashboard as well as in a separate annual report
(“SustainableDevelopmentReport”).
The responsible management policy, the dashboard
and the annual sustainable development report are
availableontheGroup’swebsite.
Luxembourg,29
th
April2022.
The Board of Directors
Socnaf S.A.
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ANNUAL REPORT
2021
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43
Auditor’s report on the consolidated nancial statements
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
TotheShareholdersof
Socnaf S.A.
4,AvenueGuillaume
L-1650Luxembourg
Opinion
Wehaveauditedtheconsolidatednancialstatements
of Socnaf S.A. and its subsidiaries (the “Group”),
whichcomprisetheconsolidatedstatementofnancial
positionasat31December2021,andtheconsolidated
statementofcomprehensiveincome,theconsolidated
statementofchangesinequityandtheconsolidated
statementofcashowsfortheyearthenended,and
the notes to the consolidated nancial statements,
includingasummaryofsignicantaccountingpolicies.
In our opinion, the accompanying consolidated
nancialstatementsgiveatrueandfairviewofthe
consolidated nancial position of the Group as at
31December 2021,andof itsconsolidated nancial
performanceandconsolidatedcashowsfortheyear
thenendedinaccordancewithInternationalFinancial
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
forLuxembourgby the “Commissionde 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”
sectionofourreport.Wearealsoindependentofthe
Group in accordance with the International Ethics
Standards Board forAccountants’ Code ofEthics for
ProfessionalAccountants (“IESBA Code”) as adopted
forLuxembourgbytheCSSFtogetherwiththeethical
requirements that are relevant to our audit of the
consolidatednancialstatements, and havefullled
ourotherethicalresponsibilitiesunderthoseethical
requirements.Webelievethattheauditevidencewe
natural
rubber
(TSR20
1st
position
on
SGX)
and
the
•
a
decrease
or
an
increase
of
the
listed
price
of
The
indicators
used
by
Group
Management
are:
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
8
“Impairment
of
assets”
of
the
consolidated
losses.
accumulated
depreciation
and
any
impairment
Equipment”.
These
assets
are
recognised
at
costless
the
principles
dened
in
IAS
16
“Property,
Plantand
and
rubber
plantations,
are
valued
in
accordancewith
biological
assets,
which
consist
mainly
of
oilpalm
The
Group
owns
biological
assets
in
Africa.These
total
assets
of
EUR
890
million.
biological
assets
amounted
to
EUR
366
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
Auditor’s report on the consolidated nancial statements
44
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Socnaf S.A.
listedpriceofcrudepalmoil(CIFRotterdam)atthe
balancesheetdatehigherthan15%comparedtoa
ve-year average of the pricesobserved onthose
markets
• adecreaseoranincreaseofthesix-monthaverage
ofthepricesobservedofthosemarketshigherthan
15%comparedtoave-yearaverageoftheprices
observedonthosemarkets
• a decrease or an increase of the twelve-month
averageofthepricesobservedofthosemarketsof
morethan15%comparedtoave-yearaverageof
thepricesobservedonthosemarkets
Forpalmoil,whichismainlysoldonlocalmarkets,
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
indicatorofimpairmentreversalrespectively.
In addition to these external factors, the Group
analyses the following internal performance
indicators:
- Specicities of the local market (evolution of
supplyanddemand,...);
-Physicalindicationsofimpairment;
-Signicantchangesintheplantationsthatcould
haveamaterialimpactonfuturecashows.
Therecoverableamountisdeterminedasthehigher
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
utilizationofappropriatediscountrates.
Weconsideredthevaluationofbiologicalassetstobe
akeyauditissuebecauseof:
-theirsignicanceinrelationtotheGroup’stotal
assets
-theassessmentofwhetherthereisanyindicator
of impairment or any indicator of impairment
reversal;and
- the determination of their recoverable amount
which involves signicant judgements and
estimates.
Audit response
Inordertoassessthereasonablenessofanindicator
ofimpairmentoranindicatorofimpairmentreversal
and,whereappropriate,todeterminetherecoverable
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
impairmentreversalbycomparingtheunderlying
dataoftheanalysiswiththesourceofthedata
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
impairmentreversal,includingthatsitevisitsof
theplantationshavebeencarriedout;
• Incaseofidenticationofanindicatorofimpairment
oranindicatorofimpairmentreversal,we:
- Assess the appropriateness of the methodology
applied by Group Management to determine
the recoverable value of the biological assets
andtheaccuracy ofanyimpairmentlossorany
impairmentreversalrecorded;
- Analyze the reasonableness of the cash ow
forecastsusedbyGroupManagementtodetermine
thevalueinuseofthebiologicalassets;
- Assessthereasonablenessoftheassumptionsand
inputsusedbyGroupmanagement;and
- Reconcilethekeyinputsusedinthemodelwith
informationauditedbythecomponentsauditors
ofmaterialsubsidiaries.
• Assess whether thedisclosures requiredby IAS36
“Impairment of Assets” for biological assets are
properlydisclosedinthenotesoftheconsolidated
nancialstatements.
Auditor’s report on the consolidated nancial statements
Socnaf S.A.
|
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45
Other information
The Board of Directors is responsible for the other
information. The other information comprises the
informationincludedintheconsolidatedmanagement
report and the corporate governance statement but
doesnotincludetheconsolidatednancialstatements
and our report of “réviseur d’entreprises agréé”
thereon.
Ouropinionontheconsolidatednancialstatements
doesnotcovertheotherinformationandwedonot
expressanyformofassuranceconclusionthereon.
In connection with our audit of the consolidated
nancialstatements,ourresponsibilityistoreadthe
otherinformationand,indoingso,considerwhether
the other information is materially inconsistent
with the consolidated nancial statements or our
knowledgeobtainedintheauditorotherwiseappears
tobemateriallymisstated.If,basedontheworkwe
haveperformed,weconcludethatthereisamaterial
misstatement of this other information, we are
requiredtoreportthisfact.Wehavenothingtoreport
inthisregard.
Responsibilities of the Board of Directors and
of those charged with governance for the
consolidated nancial statements
TheBoardofDirectorsisresponsibleforthepreparation
and fair presentation of the consolidated nancial
statementsinaccordancewithIFRSasadoptedbythe
EuropeanUnion,andforsuchinternalcontrolasthe
BoardofDirectorsdeterminesisnecessarytoenable
thepreparation ofconsolidatednancialstatements
that are free from material misstatement, whether
duetofraudorerror.
The Board of Directors is also responsible for
presenting the consolidated nancial statements
in compliancewith 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
intendstoliquidatetheGrouportoceaseoperations,
orhasnorealisticalternativebuttodoso.
Those charged with governance are responsible for
overseeingtheCompany’s/Bank’s[Group’s]nancial
reportingprocess.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the consolidated
nancial statements
Theobjectivesofourauditaretoobtainreasonable
assurance about whether the consolidated nancial
statements as a whole are free from material
misstatement,whetherduetofraudorerror,andto
issue areport of the “réviseur d’entreprisesagréé”
thatincludesouropinion.Reasonableassuranceisa
highlevel ofassurance, butis notaguarantee that
anauditconductedinaccordancewithEURegulation
N°537/2014,the Law of 23July2016 and withthe
ISAs as adopted for Luxembourg by the CSSF will
always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
andareconsideredmaterialif,individuallyorinthe
aggregate, they could reasonably be expected to
inuence the economic decisions of users taken on
thebasisoftheseconsolidatednancialstatements.
AspartofanauditinaccordancewithEURegulation
N°537/2014,theLawof23July2016andwithISAs
asadoptedforLuxembourgbytheCSSF,weexercise
professional judgment and maintain professional
skepticismthroughouttheaudit.Wealso:
•Identifyandassesstherisksofmaterialmisstatement
of the consolidated nancial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufcient and appropriate
toprovide abasisforouropinion.Theriskofnot
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
asfraudmayinvolvecollusion,forgery,intentional
omissions, misrepresentations, or the override of
internalcontrol.
•Obtainanunderstandingofinternalcontrolrelevant
to the audit in order to design audit procedures
thatareappropriateinthecircumstances,butnot
for the purpose of expressing an opinion on the
effectivenessoftheGroup’sinternalcontrol.
Auditor’s report on the consolidated nancial statements
46
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ANNUAL REPORT 2021
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Socnaf S.A.
•Evaluate the appropriateness of accounting
policiesusedandthereasonablenessofaccounting
estimates and related disclosures made by the
BoardofDirectors.
•Conclude on the appropriateness of Board of
Directors’useofthegoingconcernbasisofaccounting
and,basedontheauditevidenceobtained,whether
a material uncertainty exists related to events or
conditions that may cast signicant doubt on the
Group’s ability to continue as a goingconcern. If
we conclude that a material uncertainty exists,
wearerequiredtodrawattentioninourreportof
the “réviseur d’entreprises agréé” to the related
disclosuresintheconsolidatednancialstatements
or, if such disclosures are inadequate, to modify
ouropinion.Ourconclusionsarebasedontheaudit
evidenceobtaineduptothedateofourreportof
the“réviseurd’entreprisesagréé”.However,future
eventsorconditionsmaycausetheGrouptocease
tocontinueasagoingconcern.
•Evaluate the overall presentation, structure and
content of the consolidated nancial statements,
including the disclosures, and whether the
consolidated nancial statements represent the
underlyingtransactionsandeventsinamannerthat
achieves fair presentation.
• Assess whether the consolidated nancial
statements have been prepared, in all material
respects,incompliancewiththerequirementslaid
downintheESEFRegulation.
•Obtain sufcient appropriate audit evidence
regardingthe nancialinformation oftheentities
andbusinessactivitieswithintheGrouptoexpress
anopinionontheconsolidatednancialstatements.
We are responsible for the direction, supervision
and performance of the Group audit. We remain
solelyresponsibleforourauditopinion.
Wecommunicatewiththosechargedwithgovernance
regarding, among other matters, the planned scope
andtimingoftheauditandsignicantauditndings,
including any signicant deciencies in internal
controlthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewith
a statement that we have complied with relevant
ethical requirements regarding independence, and
communicate to them all relationships and other
matters that may reasonably bethought tobear on
our independence, and where applicable, related
safeguards.
Fromthematterscommunicatedwiththosecharged
with governance, we determine those matters
that were of most signicance in the audit of the
consolidatednancialstatementsofthecurrentperiod
andarethereforethekeyauditmatters.Wedescribe
thesemattersinourreportunlesslaworregulation
precludespublicdisclosureaboutthematter.
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,is2years.
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 32to 37isthe responsibilityof the Board
of Directors. The information required by article
68ter paragraph (1) letters c) and d) of the law of
19December2002onthecommercialandcompanies
register and on the accounting records and annual
accountsofundertakings6,asamended,isconsistent
with the consolidated nancial statements and has
been prepared in accordance with applicable legal
requirements.
Wehavecheckedthecomplianceoftheconsolidated
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;
• 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 Groupas at31 December 2021,identied as
2021 Socnaf Annual Report, havebeen prepared,
Auditor’s report on the consolidated nancial statements
Socnaf S.A.
|
ANNUAL REPORT 2021
|
47
in all material respects, in compliance with the
requirementslaiddownintheESEFRegulation.
Weconrmthat theauditopinionisconsistentwith
the additional report to the audit committee or
equivalent.
We conrm that the prohibited non-audit services
referred to inEU Regulation No 537/2014 were not
provided and thatwe remained independent of the
Groupinconductingtheaudit.
Ernst&Young
Sociétéanonyme
Cabinetderévisionagréé
Yves Even
Luxembourg,29
th
April2022
48
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Socnaf S.A.
Consolidated nancial statements
1. Consolidated statement of nancial position
31/12/2021 31/12/2020
Restated (*)
ASSETS Note EUR EUR
Non-Current Assets
Right-of-useassets 3 7,484,998 7,796,257
Intangibleassets 4 1,958,916 2,176,612
Property,plantandequipment 5 269,676,822 246,991,466
Biologicalassets 6 365,903,978 363,692,548
Investments in associates 10 23,619,982 22,149,858
Financialassetsatfairvaluethroughothercomprehensiveincome 11 38 91,902
Long-termadvances 1,745,719 1,416,590
Deferredtaxassets 12 9,421,066 8,639,695
Other non-current assets 1,743,807 1,661,749
Current Assets
Inventories 15 92,844,873 82,571,321
Currentbiologicalassets 6 2,423,966 0
Tradereceivables 16 28,185,332 27,031,366
Otherreceivables 17 8,995,522 13,619,891
Current tax assets 13 13,378,526 12,802,007
Cashandcashequivalents 18 63,091,772 35,372,991
TOTAL ASSETS 890,475,317 826,014,253
(*)Forfurtherdetails,seeNote1.5,14and22.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
Socnaf S.A.
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|
49
31/12/2021 31/12/2020
Restated (*)
EQUITY AND LIABILITIES Note EUR EUR
Equity attributable to the owners of the Parent
Sharecapital 19 35,673,300 35,673,300
Share premium 19 87,453,866 87,453,866
Legalreserve 20 3,567,330 3,567,330
Consolidatedreserves 180,034,758 182,482,314
Translationreserves -63,481,543 -80,401,590
Protfortheperiod 72,028,965 -3,879,770
Non-controlling interests
9 121,205,286 109,141,208
Total Equity
Non-Current Liabilities
Deferredtaxliabilities 12 11,408,890 9,757,571
EmployeeBenetsObligations 21 12,054,536 13,211,378
Long-termdebt,netofcurrentportion 22 234,679,480 134,841,339
Long-termleaseliabilities 3 8,285,305 8,245,089
Otherpayables 23 7,401,155 7,685,924
Current Liabilities
Short-termdebtandcurrentportionoflongtermdebt 22 35,588,183 161,910,541
Short-termleaseliabilities 3 1,105,090 1,354,035
Tradepayables
23
Currenttaxliabilities 13 30,408,824 20,857,243
Provisions 337,462 646,902
Otherpayables 23 68,876,569 84,974,842
TOTAL EQUITY AND LIABILITIES 890,475,317 826,014,253
(*)Forfurtherdetails,seeNote1.5,14and22.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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2.Consolidated income statement
2021 2020
Restated (*)
Note EUR EUR
Revenue 32 526,702,437 402,564,812
Workperformedbyentityandcapitalised 11,960,180 15,100,184
Changeininventoriesofnishedproductsandworkinprogress 753,008 2,647,322
Otheroperationalincome 5,393,496 3,931,391
Rawmaterialsandconsumablesused
32
-145,224,395 -133,596,378
Other expenses
32
-114,534,558 -95,312,306
Staff costs 25 -69,886,384 -68,590,979
Depreciationandimpairmentexpense 7 -55,738,718 -59,412,147
Otheroperatingexpenses
32, 14
-16,546,165 -10,988,093
Operating prot 142,878,901 56,343,806
Othernancialincome 26 6,324,778 2,960,823
Gainondisposals 803,432 136,205
Lossondisposals -3,604,256 -677,671
Financialexpenses 27 -22,363,108 -27,706,483
Prot before taxes 124,039,747 31,056,680
Income tax expense 14 -28,856,992 -20,318,842
Deferredtax(expense)/income 14 -718,754 1,131,780
ShareoftheGroupintheresultfromassociates 10 7,264,010 1,259,361
Prot for the period 101,728,011 13,128,979
Prot attributable to non-controlling interests 29,699,047 17,008,748
Prot attributable to the owners of the Parent 72,028,965 -3,879,769
Basic earnings per share undiluted 28 4.04 -0.22
Number of Socnaf shares
Basicearningspershare
Dilutedearningspershare
(*)Forfurtherdetails,seeNote1.5,14and22.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
Socnaf S.A.
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51
3. Consolidated statement of comprehensive income
2021 2020
Note EUR EUR
Prot for the period
Other comprehensive income
Actuariallossesandgains 21 2,011,089 -4,360,992
Deferredtaxonactuariallossesandgains -568,972 1,147,891
Subtotal of items that cannot be reclassied to prot or loss
Gains(losses)onexchangedifferencesontranslationofsubsidiaries
Shareofothercomprehensiveincomerelatedtoassociates 296,273 -256,766
Subtotal of items eligible for reclassication to prot or loss 18,517,898 -49,970,016
Total other comprehensive income 19,960,015 -53,183,117
Comprehensive income 121,688,026 -40,054,138
Comprehensive income attributable to non-controlling interests 31,337,419 7,165,981
Comprehensive income attributable to the owners of the Parent 90,350,609 -47,220,119
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
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4.Consolidated statement of cash ows
2021
2020
Restated (*)
Note EUR EUR
Operating activities
ProtattributabletotheownersoftheParent 72,028,965 -3,879,770
Protattributabletonon-controllingshareholders 29,699,047 17,008,748
Income from associates 10 -7,264,009 -1,259,361
Dividendsreceivedfromassociates 10 3,383,509 3,302,248
Fairvalueofagriculturalproduction -8,090,073 2,992,208
Otheradjustmentshavingnoimpactoncashposition -1,352,609 5,384,264
Depreciationandamortisation 55,738,719 59,412,145
Provisionsandallowances -1,120,117 710,938
Netlossondisposalsofassets 2,799,747 541,467
Income tax expense 14 29,575,745 19,187,061
Cash ows from operating activities 175,398,924 103,399,952
Interest paid 26,27 14,683,522 16,783,864
Income tax paid 14 -28,856,992 -20,318,842
Changeininventory -3,417,054 -10,339,842
Changeintradeandotherreceivables 6,878,991 -8,808,239
Changeintradeandotherpayables -10,288,803 5,955,653
Accrualsandprepayments -118,044 4,765,540
Change in working capital requirement -6,944,910 -8,426,888
Net cash ows from operating activities 154,280,544 91,438,086
Investing activities
Acquisitions/disposalsofintangibleassets -3,696 264,385
Acquisitionsofproperty,plantandequipmentandbiologicalassets 5,6 -62,916,100 -62,042,911
Disposalsofproperty,plantandequipment 1,375,153 1,139,130
Acquisitions/disposalsofnancialxedassets 142,451 -443,700
Net cash ows from investing activities -61,402,192 -61,083,096
Financing activities
Dividendspaidtonon-controllingshareholders
9
-18,586,503 -10,061,332
Proceedsfromborrowings
22
Repaymentofborrowings
22
-56,595,266 -20,252,331
Repaymentofleaseliabilities
22
-1,595,202 -1,622,570
Interestpaid 26,27 -14,683,522 -16,783,864
Net cash ows from nancing activities -68,682,118 -24,813,402
Effectofexchangerateuctuations 551,540 -3,099,477
Net cash ow 24,747,774 2,442,111
Cashandcashequivalentsat1
st
January 18 31,314,670 28,872,559
Cashandcashequivalentsat31
st
December 18 56,062,445 31,314,670
Net increase / (decrease) in cash and cash equivalents 24,747,775 2,442,111
(*)Forfurtherdetails,seeNote1.5,14and22.
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements.
Consolidated nancial statements
Socnaf S.A.
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53
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
-3,879,769 -3,879,769 17,008,748 13,128,979
Actuariallossesandgains
-2,336,185 -2,336,185 -876,916 -3,213,101
Foreigncurrencytranslationadjustments
-40,747,399 0 -40,747,399 -8,965,851 -49,713,250
Changeinothercomprehensiveincome
from associates
-256,766 -256,766 0 -256,766
Other comprehensive income
-40,747,399 -6,472,720 -47,220,119 7,165,981 -40,054,138
Dividends(Note29)
Other movements
-99,682 -113,031 -212,713 -216,659 -429,372
Transactions with shareholders
-99,682 -113,031 -212,713 -10,603,811 -10,816,524
Balance at 31
st
December 2020
Balance at 1
st
January 2021
Prot/(loss)fortheperiod
Actuariallossesandgains
Foreigncurrencytranslationadjustments
Changeinothercomprehensiveincome
from associates
Other comprehensive income
Dividends(Note29)
Interimdividends(Note29)
Other movements
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
nd
October
1961. Its corporate purpose qualies it as a holding company
“sopar”sincetheAnnualGeneralMeetingof10
th
January2011.
The registered ofce is established at 4, avenue Guillaume,
The main activity of the Company and its subsidiaries (the
“Group”) is the management of a portfolio of holdings mainly
abbreviated as “Socn” which is the largest entity that
consolidates.Theregisteredofceofthelattercompanyisalso
locatedat4,avenueGuillaume,L-1650inLuxembourg.
TheCompanyislistedontheLuxembourg StockExchangeunder
ISIN code: LU0056569402 and is registered in the commercial
registerunderthenumberB6225.
1.2. Statement of compliance
The consolidated nancial statements have been prepared
on a going concern basis and in accordance with International
FinancialReportingStandards(IFRS)asadoptedbytheEuropean
Unionandtheconsolidatednancialstatementsarepresentedin
eurosandroundedtothenearestwholenumber,theeurobeing
thefunctionalcurrency oftheparent companySocnafand of
theGroup’spresentationcurrency.
On 29
th
April 2022, the Board of Directors approved the
consolidatednancialstatements.
InconformitywiththecurrentlegislationexistingintheGrand
DuchyofLuxembourg,thenancialstatementswillbeapproved
bytheshareholdersduringtheAnnualGeneralMeeting.
New standards and amendments applicable on 1
st
January
2022:
- AmendmenttoIFRS3BusinessCombinations: reference to the
ConceptualFramework:theamendmentsupdatedthereference
totheConceptualFrameworkforFinancialReporting,addeda
referencetoIAS37orIFRIC21whenacompanyidentiesthe
liabilitiesassumedinabusinesscombination,andstatedthat
anacquirershouldnotrecognisecontingentassetsacquiredin
a business combination.
- Amendment IAS 16 Property, Plant and Equipment: the
amendmentsprohibitacompanyfromdeductingfromthecost
ofproperty,plantandequipmentamountsreceivedfromselling
itemsproducedwhilethecompanyispreparingtheassetforits
intendeduse.Instead,acompanyshouldrecognisesuchsales
proceedsandrelatedcostinprotorloss.
- Amendments to IAS 37 Provisions, Contingent Liabilities and
Contingent Assets: Onerous Contracts — Cost of Fullling a
Contract: these amendments specify which costs a company
includeswhenassessingwhetheracontractwillbeloss-making.
- Annual Improvements to IFRS Standards 2018–2020: these
amendmentsconcernIFRS1,IFRS9,IFRS16andIAS41
• IFRS 1 (1
st
time adopter): allows asubsidiarytomeasure
translationdifferencesusingtheamountsreportedbyits
parent,basedontheparent’sdateoftransitiontoIFRS
• IFRS 16: removal from the illustrative examples of
the illustration of the reimbursement of leasehold
improvementsbythelessor
• IFRS9:theamendmentclarieswhichfeesanentityincludes
whenitappliesthe“10percent”testinparagraphB3.3.6
ofIFRS9inassessingwhethertoderecogniseanancial
liability.
• IAS 41: the amendment removes the requirement in IAS
41.22 for entities to exclude taxation cash ows when
measuring the fair value of a biological asset using a
presentvaluetechnique
New standards and amendments applicable after 1
st
January
2022:
On 18
th
May2017,theIASBissuedIFRS17“InsuranceContracts”,
which establishes principles for the recognition, measurement
and presentation of contracts. Under IFRS 17, insurance
performanceshouldbemeasuredatitscurrentexecutionvalue
and provide a more consistent measurement and presentation
method for all insurance contracts. IFRS 17 replaces IFRS 4
“Insurance contracts”anditsinterpretations.Itis effective as
of 1
st
January 2023 and early adoption is permitted if IFRS 15
“RevenuefromContractswithCustomers”andIFRS9“Financial
Instruments”havebeenapplied.On9
th
December2021,theIASB
issuedamendmentstoIFRS17,aimedathelpingentitiestoavoid
temporaryaccountingmismatchesbetweennancialassetsand
insurance contract liabilities. The Group does not expect that
Consolidated nancial statements
Socnaf S.A.
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55
theadoptionofthisnewstandardwillhaveamaterial
impactonitsconsolidatednancialstatements.
On 12
th
February2021,theIASBissuedamendmentsto
IAS1,IFRS2PracticeStatement“MakingJudgments
about Materiality” and IAS 8. The amendments
are intended to assist preparers in determining the
accountingpoliciestobepresentedintheirnancial
statements, to further enhance the importance
in determining the accounting policies, and to
distinguish changes in accounting estimates from
changes in accounting policies. They are effective
for nancial years beginning on or after 1
st
January
2023andaretobeappliedprospectively,withearly
adoptionpermitted.TheGroupiscurrentlyassessing
theimpactoftheseamendments.
The Group does not expect the adoption of these
amendments to have a material impact on its
consolidatednancialstatements,noranticipateearly
adoption of new accounting standards, amendments
andinterpretations.
New IFRS standards, amendments and
interpretations not yet endorsed by the European
Union:
On 23
rd
January2020,theIASBpublishedamendments
toIAS1“PresentationofFinancialStatements”onthe
classicationofliabilitiesascurrentandnon-current
inordertoestablishamoregeneralapproachtothe
classication of liabilities under IAS 1, based on an
analysis of contracts existing at the balance sheet
date. The amendments include clarication of the
requirementsforclassifyingliabilitiesthatacompany
couldsettleby convertingtheminto equity.On15
th
July2020,theIASBdeferredtheeffectivedateofthe
amendments,thatareeffectivefornancialperiods
beginning on or after 1
st
January 2023 and must be
appliedretroactivelywithearlyadoptionpermitted.
TheGroupiscurrentlyassessingtheimpactofthese
amendments.
On7
th
May2021,theIASBpublishedamendmentsto
IAS12“DeferredTaxrelatedtoAssetsandLiabilities
arisingfroma SingleTransaction”.Theamendments
narrowedthescopeoftherecognitionexemptionin
paragraphs15and24ofIAS12(recognitionexemption)
sothatitno longer applies to transactionsthat,on
initial recognition, give rise to equal taxable and
deductibletemporarydifferences.Theyareeffective
for nancial years beginning on or after 1
st
January
2023andaretobeappliedretrospectively,withearly
adoptionpermitted.TheGroupiscurrentlyassessing
theimpactoftheseamendments.
1.3. Presentation of the consolidated nancial
statements
Theconsolidated nancialstatements arepresented
ineuros(EURor€).
Theyarepreparedonthebasisofhistoricalcostwith
theexceptionofthefollowingassets:
- Biologicalassets(current)(IAS2,IAS41),derivative
instruments and securities measured at fair value
throughothercomprehensiveincomearerecognised
atfairvalue;
- Property,plantandequipmentacquiredaspartofa
businesscombination(IFRS3)aremeasuredinitially
attheirfairvalueatthedateofacquisition.
Theaccountingprinciplesandrulesareapplied ina
consistentandpermanentwaywithintheGroup.The
consolidated nancial statements are prepared for
the accounting year ending 31
st
December 2021 and
arepresentedbeforetheAnnualGeneralMeetingof
shareholders approving the allocation of the parent
company’sincome.
As of 1
st
January 2021, the Group adopted the
following amendments without any material impact
on the Group’s consolidated nancial statements:
o AmendmentstoIFRS9,IAS39,IFRS7,IFRS4and
IFRS16Interest RateBenchmarkReform–Phase
2ofthe“IBOR”interestratebenchmarkreform.
Theamendmentscomplementthoseissuedin2019
describedaboveandfocusontheeffectsonthe
nancialstatementswhenacompanyreplacesthe
oldinterestratebenchmarkwithanotherinterest
ratebenchmarkasaresultofthereform.
Thechangesinthisnalphaserelatetochanges
in contractual cash ows: a company will not
havetoderecogniseoradjustthecarryingamount
of nancial instruments to reect the changes
required by the reform, but instead will update
theeffectiveinterestratetoreectthechangein
thealternativeinterestratebenchmark.
o AmendmenttoIFRS16Leases:COVID-19-Related
RentConcessionsbeyond30
th
June2021 (applicable
forannual periodsbeginning onor after1
st
April
2021):thisamendmentextends,byoneyear,the
Consolidated nancial statements
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May2020amendmentthatprovides lessees with
anexemptionfromassessingwhetheraCOVID-19-
relatedrentconcessionisaleasemodication.
o Amendment to IFRS 4 “Insurance contract”: on
25
th
and June 2020, the IASB issued amendments
to IFRS 4 that provide for an extension of the
temporary exemption from IFRS 9 “Financial
Instruments”until1
st
January2023toalignwiththe
effectivedateofIFRS17“InsuranceContracts”.
1.4. Consolidation principles
The consolidated nancial statements include the
nancialstatements ofthe parentcompanySocnaf
aswell asthoseofthecompaniescontrolledbythe
parent (“subsidiaries”) and those of the companies
in which Socnaf has exercised signicant inuence
(“associates”),allofwhichconstitutethe“Group”.
Allcompaniesincludedinthescopeofconsolidation
as at 31
st
December 2021 close their accounts on
31
st
December.
a) Subsidiaries
In accordance with IFRS 10, an investor has control
whenthreeconditionsarefullled:
1)itholdspowerovertheentity;
2) itisentitledtooris exposed to variable returns
fromitsinvolvement;
3)ithastheabilitytouseitspowerovertheentityto
affect returns.
Currently,theGroupholdsthemajorityofthevoting
rightsintheentities.
Income and expenses from subsidiaries acquired or
soldduringtheyearareincludedintheconsolidated
income statement, respectively, from the date of
acquisitiontothedateofdisposal.
Prot or loss and each component of other
comprehensive income are attributed to the equity
holders oftheparentoftheGroupandtothe non-
controllinginterests, evenif thisresultsinthenon-
controllinginterestshavingadecitbalance.
Where appropriate, restatements are made to the
nancial statements of the subsidiaries to align
the accounting principles used with those of other
companiesinthescopeofconsolidation.
All intra-group balances and transactions are
eliminateduponconsolidation.
If the Group loses control over a subsidiary, it
derecognisesthe relatedassets(includinggoodwill),
liabilities, non-controlling interest and other
componentsofequity,whileanyresidualgainorloss
isrecognisedinprotorloss.Anyinvestmentretained
isrecognisedatfairvalue.
b) Investments in associates
An associate is a company over which the Group
exercisessignicantinuencethroughitsparticipation
in the nancial and operational decisions of this
company,butoverwhichithasnocontrol.Signicant
inuenceispresumedwhentheGroupholds,directly
or indirectly through its subsidiaries, between 20%
and50%ofthevotingrights.Associatesareaccounted
forusingtheequitymethod.Underthismethod,the
Group’sinterestintheassociateisinitiallyrecognised
at cost in the statement of nancial position and
subsequently adjusted to recognise the Group’s
share of movements in prot and loss and other
comprehensive income.
The statement of prot or loss reects the Group’s
shareoftheresultsofoperationsoftheassociateor
joint venture. Any change in other comprehensive
income of those investees is presented as part of
theGroup’sothercomprehensiveincome.Unrealised
gainsandlossesresultingfromtransactionsbetween
the Group and the associate or joint venture are
eliminated to the extent of the interest in the
associate or joint venture.
Investments in associates are included in the
consolidated nancial statements using the equity
methodfromthedateonwhichsignicantinuence
begins until the date when this inuence ceases.
Thecarryingamountofpositivegoodwillthatresults
fromtheacquisition ofassociatesis included inthe
carryingamountoftheinvestmentandisnottested
for impairment separately. An impairment test is
performed if an objective index of impairment is
identied.Impairmentisrecognised,ifnecessary,in
the income statement under the heading “Share in
thenetincomeofcompaniesconsolidatedusingthe
equitymethod”.
The list ofsubsidiariesandassociatedcompaniesof
theGroupispresentedinNote2.
Consolidated nancial statements
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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
interpretationorpermitsmorereliableandrelevant
information. Changes in accounting policies are
accounted for retrospectively, except in the case
of transitional provisions specictothestandardor
interpretation. An error, when discovered, is also
adjustedretrospectively.Duringtheyear,thecompany
performedaprioryearrestatementonthelong-term
debt account (Note 22) and income tax (Note 14).
Theserestatementsdonothaveamaterialimpacton
thenancialstatements.
Uncertaintiesinherentintheactivityrequiretheuse
of estimates when preparing nancial statements.
The estimates are based on judgments intended to
give a reasonable assessment of the latest reliable
informationavailable.Anestimateisrevisedtoreect
changesincircumstances,newinformationavailable
andtheeffectsofexperience.
1.6. Business combinations
IFRS 3 “Business Combinations” provides the
accountingbasisforrecognisingbusinesscombinations
andchangesininterestsinsubsidiariesafterobtaining
control.
This standard makes it possible, at each grouping,
to opt for the recognition of a positive goodwill
(correspondingtomajorityandminorityinterests)or
apartialpositivegoodwill(basedonthepercentage
ofvestedinterests).
The accounting treatment of this difference is
describedinpoints1.7and1.8.
Changes in interest in a subsidiary that do not
resultinloss of controlareaccounted forasequity
transactions.
1.7. Goodwill
Goodwillisthedifferenceonthedateofacquisition
betweenthefairvalueoftheconsiderationgivenin
exchange for taking control, the value of minority
interests,thefairvalueofpreviousequityinvestments
andthefairvalueofidentiableassetsandliabilities
andcontingentliabilitiesoftheacquiree.
When disposing of a subsidiary or an associate, the
residual amount of goodwill attributable to the
subsidiaryisincludedinthecalculationoftheresult
ofdisposal.
1.8. Negative goodwill
Negative goodwill represents the excess of the
Group’s interest in the fair value of identiable
assetsandliabilitiesandthecontingentliabilitiesof
asubsidiaryorassociateonthecostofacquisitionon
theacquisitiondate.
To the extent that negative goodwill remains
after considering and reassessing the fair value of
identiable assets and liabilities and contingent
liabilitiesofasubsidiaryorassociate,itisrecognised
directlyasanincomeintheincomestatement.
1.9. Foreign currency conversion
In the nancial statements of Socnaf and of each
subsidiary, transactions in foreign currency are
recorded, upon initial recognition, in the functional
currencyof thecompanyconcernedbyapplyingthe
exchange rate in force on the transaction date. At
closing,monetaryassetsandliabilitiesdenominatedin
foreigncurrenciesareconvertedonthelastdayofthe
year.Gainsandlossesarisingfromtherealisationor
translationofmonetaryitemsdenominatedinforeign
currenciesarerecordedintheincomestatementfor
the year.
To hedge its exposure to certain foreign exchange
risks, the Group uses forward exchange contracts.
Thesenancialinstrumentsdonotqualifyforhedge
accounting.They are classied in other instruments
(seeNote1.18).
Onconsolidation,theassetsandliabilitiesofcompanies
whoseaccountsareheldinacurrencyotherthanthe
euroaretranslated into euros attheexchange rate
prevailingontheclosingdate.Incomeandexpenses
areconvertedintoeurosattheaverageexchangerate
fortheyear.Anyexchangedifferencesareclassiedas
equityunder“Translationdifferences”.Inthe event
ofadisposal, thetranslationdifferencesrelating to
Consolidated nancial statements
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thecompanyconcernedarerecognisedintheincome
statementfortheyearinwhichthesaletookplace.
Goodwill and fair value adjustments arising on the
acquisition of a foreign entity are treated as assets
andliabilitiesoftheforeignentityandtranslatedat
theclosingrate.
Thefollowingexchangerateshavebeenusedforthe
conversionoftheconsolidatedannualaccounts:
Closing rate Average rate
1 euro equals to: 2021 2020 2021 2020
EUR 1.000 1.000 1.000 1.000
CFAfranc 655.957 655.957 655.957 655.957
Ghanaiancedi 6.8025 7.0683 6.8705 6.4179
Nigeriannaira 467.50 465.87 471.97 408.50
DobraofSãoTomé 24.50 24.50 24.50 24.50
Congolesefranc 2,265 2,420 2,351 2,117
Americandollar 1.1326 1.2271 1.1809 1.1451
1.10. Intangible assets
Intangibleassetsarestated attheiracquisition cost
less accumulated depreciation and any impairment
losses.
Amortisation is applied on a straight-line basis
basedon anestimateof theusefullifeofthe asset
in question. Intangible assets are not subject to
revaluation.Whentherecoverablevalueofanasset
islowerthanitsbookvalue,thelatterisreducedto
reectthislossinvalue.
Theestimatedusefullivesareasfollows:
Patents 3to5yearsold
Otherintangibleassets 3to5yearsold
Software 3to5yearsold
Concessions Lengthoftheconcessions
Amortisationstartsfromthedateofbringingtheasset
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
incomestatementwhenassetsarederecognised.
1.11. Property, plant, equipment
Tangiblexedassetsarerecordedattheiracquisition
cost less accumulated amortisation and any
impairmentlosses.
Property,plantandequipmentinprogressiscarriedat
costlessanyidentiedimpairment.
Depreciationisappliedonastraight-linebasisbased
onanestimateoftheusefullifeforeachsignicant
component of the asset in question. When the
recoverablevalue ofan assetis lowerthan itsbook
value,thelatterisreducedtoreectthislossinvalue.
Theestimatedusefullivesareasfollows:
Buildings 20to50years
Technicalinstallations 3 to 20 years
Furniture,vehiclesandothers 3 to 20 years
Depreciationstartsfromthedatethattheassetsare
broughtintouse.
Landisnotsubjecttodepreciation.
Gains or losses arising on derecognition of assets
(difference between the disposal proceeds and the
carrying amount of the asset) are included in the
incomestatementwhenassetsarederecognised.
Consolidated nancial statements
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1.12. Bearer biological assets
The Group has biological assets in Africa. These
biological assets, mainly consisting of palm oil and
rubber plantations, are valued according to the
principlesdenedinIAS16“Tangiblexedassets”.
Biologicalassetsatthetimeofharvest,inparticular
forpalmbunches,palmoilandrubber,areevaluated
according to the principles dened by IAS 41
“Agriculture”.
Bearer biological assets
Producerbiologicalassetsarerecordedatacquisition
cost, less accumulated amortisation and any
impairmentlosses.
Depreciationisappliedaccordingtothestraight-line
methodbasedonanestimateoftheusefullife.When
the recoverable amount of an asset is less than its
carryingamount,thecarryingamount is reduced to
reectthatimpairment.
Theestimatedusefullivesareasfollows:
Bearerplants–Palm 20 to 26 years
Bearerplants-Rubber
20 to 33 years
Depreciationstartingdate isthedate oftransfer of
biologicalassetsinproduction(assetbeingmature).
Thistransfertakesplaceinthethirdyearafterpalm
oiltreeplantinginAsia,inthefourthyearafterpalm
oiltreeplantinginAfricaandintheseventhyearafter
rubbertreeplanting.Foreach entity, the operating
period can be adapted according to the particular
circumstances.
Agricultural production
Agricultural production at harvest is valued at fair
valuelessestimatedcostsnecessarytocompletethe
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
prospectivedatarelatingtotheGroup’sagricultural
production. The price of a standard product in a
global market is not sufciently representative of
theeconomicrealityinwhichthevariousentitiesof
theGroupintervene.Thispricecannotbeusedasa
referenceforvaluation.
Asaresult,eachentitydeterminesthefairvalueof
agriculturalproductionbasedonactualmarketprices
obtainedoverthepastyear.
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
valueuntilthepointofharvest.Anyresultantgainsor
lossesarisingfromchangesinfairvaluearerecognised
in the income statement.
1.13. 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
measurementapproachforallleases,exceptforshort-
term leases and leases of low-value assets (mainly
IT equipment), for which payments associated are
recognised as an expense in the income statement.
TheGrouprecognises lease liabilitiestomake lease
payments and right-of-use assets representing the
righttousetheunderlyingassets.
The Group leases ofces and agricultural land for
termsrangingfrom1to99years,aswellasvehicles
and equipment for terms ranging from 1 month to
5years.
The Group’s lease contracts are standard contracts
thatdonotincludeadditionalnon-leasingcomponents,
exceptforsomevehicleleasecontractsthatinclude
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 value of the xed
Consolidated nancial statements
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paymentsincludingin-substancexedpaymentsless
any lease incentives receivable. Lease payments to
bemadeunderreasonablycertainextensionoptions
arealsoincludedinthemeasurementoftheliability.
To this purpose, management considers all facts
and circumstances that may create an incentive to
exercisearenewaloptionornottoexerciseanearly
terminationoption.Theleaseliabilityisremeasured
if there is a change in the lease term, in the lease
payment or in the assessment of an option to purchase
theunderlyingasset.
Astheimplicitinterestrateisnotknownforallthe
Group’scontracts,theincrementalborrowingratewas
usedtodiscounttheleasepayments.Theincremental
borrowingrateistheratethatthelesseewouldhave
topaytoborrow,forasimilartermandwithasimilar
guarantee,thefundsnecessarytoacquireanassetof
similarvaluetotheassetundertheright-of-useina
similareconomicenvironment.
In determining the incremental borrowing rate, the
Group:
- where possible, uses the most recent nancing
receivedbythelesseeasastartingpoint,adjusted
toreectthechangeinnancingconditionssince
thenancingwasreceived;
- uses a build-up approach starting with a risk-free
rateadjustedforcreditriskforleasesforentities
withnorecentexternalnancing;
- makes lease specic adjustments (such as term,
country,currencyandcollateral).
ThediscountratesusedbytheGrouprangebetween
1.75%and14.5%.
Leasepaymentsareallocatedbetweentherepayment
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
ofthelease. Right-of-use assets aredepreciatedon
astraight-linebasisovertheshorteroftheusefullife
andtheleaseterm.
The Group applies IAS 36 to determine whether a
right-of-use asset is impaired and recognises any
impairmentlossasdescribedin Note 8: Impairment
of assets.
1.14. Impairment of assets
Goodwillisnotamortisedbutistestedforimpairment
at least once a year and whenever there is an
indicationofimpairment.
Inaddition,ateachreportingdate,theGroupreviews
the carrying amounts of its intangible and tangible
assets,includingitsorganicproducingassets,inorder
toassesswhetherthereisanyindicationthatitsassets
may have lost value. If there is such an indication,
therecoverableamountoftheassetisestimatedto
determine, if applicable, the amount of the loss or
impairment.Therecoverableamountisthehigherof
thefairvaluelesscoststoselltheassetandthevalue
in use.
Thefairvalueofproperty,plantandequipmentand
intangible assets is the present value of estimated
futurecashowsexpectedfromtheuseofanasset
or cash-generating unit. When it is not possible to
estimatetherecoverableamountofanisolatedasset,
theGroupdeterminestherecoverableamountofthe
cash-generatingunittowhichtheassetbelongs.
If the recoverable amount of an asset (or a cash-
generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable
amount. Impairment losses are immediately
recognisedasexpensesintheincomestatement.
Whenanimpairmentlossrecognisedinapriorperiod
no longer exists or needs to be written down, the
carryingamountoftheasset(cash-generatingunit)is
increasedtotheextentoftherevisedestimateofits
recoverableamount.However,thisincreasedcarrying
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
subsequentlyreversed.
Consolidated nancial statements
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1.15. Inventories
Inventoriesarerecordedatthelowerofcostandnet
realisable value. Cost includes direct material costs
and, if applicable, direct labour costs and directly
attributableoverheadcosts.
Wherespecicidenticationisnotpossible,thecostis
determinedonthebasisoftheweightedaveragecost
method.Netrealisablevalueistheestimatedselling
priceintheordinarycourseofbusinesslessestimated
costsofcompletionandtheestimatedcostsnecessary
tocompletethesale(primarilysellingexpenses).
Impairmentorlossoninventorytonetrealisablevalue
isrecognisedasanexpenseintheperiodinwhichthe
impairmentorlossoccurred.
As explained in Note 1.12. Bearer biological assets,
agriculturalproductionismeasuredatfairvalueless
estimatedcostsnecessarytomakethesale.
1.16. Trade receivables
Tradereceivablesarevaluedattheirnominalvalueand
donotbearinterest.TheGroupappliesa simplied
approachandrecordsaprovisionforexpectedlosses
over the life of the receivables. This provision for
lossesisanamountthattheGroupconsidersareliable
estimateoftheinabilityofitscustomerstomakethe
requiredpayments(refertoNote33).
1.17. Cash and cash equivalents
Thisitemincludescash,demanddeposits,short-term
depositsoflessthan3months,aswellasinvestments
easily convertible into a known amount of cash,
havingamaturityofthreemonthsorless,andwhich
aresubjecttoanegligibleriskofchangeinvalue.
1.18. Financial instruments
Financial assets and liabilities are recognised in the
consolidatedstatementofnancialpositionwhenthe
Groupbecomesapartytothecontractualprovisions
of the instrument.
Financial instruments derivatives
Financialinstrumentsderivativesaremeasuredatfair
valueateachreportingdate.
Theaccountingtreatmentdependsonthequalication
oftheinstrumentconcerned:
- Hedging instruments:
The Group refers to certain hedging instruments,
includingforeignexchangeriskandinterestraterisk
derivatives, as cash ow hedges. Foreign currency
hedges related to rm commitments are accounted
forascashowhedges.
Attheinceptionofthehedgingrelationship,theentity
prepares documentation describing the relationship
between the hedging instrument and the hedged
item as well as its risk management objectives and
strategyforperformingvarioushedgingtransactions.
Inaddition,whenthehedgeiscreatedandregularly
thereafter,theGroupindicateswhetherthehedging
instrument is highly effective in offsetting changes
in the fair value or cash ows of the hedged item
attributabletothehedgedrisk.
Theeffectiveportionofchangesinthefairvalueof
derivatives that are designated as cash ow hedges
and qualify for such designation is recognised in
othercomprehensiveincomeandaccumulatedinthe
hedgingreserve,cashow.Thegainorlossrelatedto
the ineffective portion is recognised immediately in
protorloss,inothergainsandlosses.
Amountspreviouslyrecognisedinothercomprehensive
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
equitytoberecognisedintheinitialmeasurementof
thecostofthenon-nancialassetorliability.
Fortheperiodsunderreview,nohedginginstruments
wereusedbytheGroup.
- Other instruments:
Changes in the fair value of derivative nancial
instrumentsthatdonotqualifyforhedgeaccounting
are recognised in the income statement when they
occur.
Consolidated nancial statements
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Loans and borrowings
Long-term advances and other interest-bearing
borrowingsarerecorded for theamountsgiven, net
ofdirectcostsofissue.Financialincomeisaddedto
thecarryingamountoftheinstrumenttotheextent
thatitisnotreceivedintheperiodinwhichitoccurs.
Interestiscalculatedusingtheeffectiveinterestrate
method.
The Group’s business model for nancial assets
managementreferstothewayitmanagesitsnancial
assetsin orderto generatecash ows.Thebusiness
modeldetermineswhethercashowswillresultfrom
thecollectionofcontractualcashows,thedisposal
ofnancialassetsorboth.Financialassetsclassied
andmeasuredatamortisedcostareheldinabusiness
model withtheobjectiveofholdingnancialassets
tocollectcontractualcashows.Long-termadvances
andotherreceivablesareheldforthesolepurposeof
collectingprincipalandinterest.Assuch,theycomply
withthe“SolelyPaymentsofPrincipalandInterest”
(SPPI) model. They are accounted for using the
amortisedcostmethod.TheGroupappliesasimplied
approach in calculating Expected Credit Losses for
loans,basedonhistoricalcreditlossexperience.
Interest-bearing borrowings and other debts are
recorded for amounts received, net of direct issue
costs.Financialexpensesareaccountedforusingthe
relevant accounting method and are added to the
carryingamountoftheinstrumenttotheextentthat
theyareunpaidintheyearinwhichtheyoccur.
Thecarryingamountisareasonableapproximationof
fairvalueinthecaseofnancialinstrumentssuchas
borrowingsanddebtswithshort-termmaturity.
Thefairvaluemeasurementofborrowingsanddebts
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.
The Group relied on the evolution of the interest
rate of the European Central Bank adjusted for the
specic risk inherent in each nancial instrument,
as a reasonable benchmark for estimating the fair
valueofsuchborrowings.TheGroupdidnotidentify
signicantdifferencesbetweenthecarrying amount
oftheloansandtheirfairvalue.
Equity instruments
Equity instruments are recognised for the amounts
received,netofdirectcostsincurredbytheissue.
Securities available for sale
This item includes shares held by the Group in
companies in which it does not exercise control or
signicantinuenceorinunconsolidatedcompanies.
Uponinitialrecognition,theseassetsarerecognised
at fair value,whichisgenerallyattheiracquisition
cost.
Securitiesthatareavailableforsalearerecognisedas
nancialassetsatfairvaluethrough comprehensive
income, as these investments are held as strategic
investments inlongtermthatshouldnotbesold in
theshortterm.Thisrecognitionatfairvaluethrough
comprehensiveincomeisirrevocable.
For equities of listed companies, the fair value is
the market value at the closing date (Level 1). For
unlistedsecurities,thefairvalueisdeterminedonthe
basisofrevaluednetassets(Level3).
Ateachreportingdate,theGroupreviewsthecarrying
amounts ofitssecuritiesinordertoassess whether
there is any indication that they may have lost
value.Noprotorlossrelatedtotheseinstruments
can be reclassied to income even at the time of
derecognition.
Other nancial assets and liabilities
Othernancial assetsandliabilities arerecordedat
theiracquisitioncost.Thefairvalueofothernancial
assetsand liabilitiesisestimatedtobe closeto the
carryingamount.
The receivables are valued at their nominal value
(at cost) less any write-downs covering amounts
consideredasnon-recoverableiftheGroupdeemsit
necessary.Impairmentof assetsisrecognised in the
income statement under “Other operating income/
expenses”. The Group has established a provision
matrixbasedonitshistoricalcredit 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
accountand theamount ofthe lossisrecognisedin
the consolidated income statement. The Board of
Directorsofeachsubsidiaryevaluatesthereceivables
Consolidated nancial statements
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individually.Valueadjustmentsaredeterminedtaking
into account the local economic reality of each
country.Theyarereviewed atthe receptionofnew
eventsandatleastannually.
1.19. 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 that has been notied to the affected
parties.
1.20. Pension obligations
Dened contribution plans
These plans designate the post-employment benet
plansunderwhichtheGrouppaysdenedcontributions
toexternalinsurancecompaniesforcertaincategories
of employees. Payments made under these pension
plansarerecognisedintheincomestatementinthe
yearinwhichtheyaredue.
Asthese plansdonotgeneratefuture commitments
fortheGroup,theydonotgiverisetoprovisions.
Dened benet plans
These plans refer to post-employment benet plans
thatprovideadditionalincometocertaincategories
of employees for services rendered during the year
andprioryears.
This guarantee of additional resources is a future
expenditure for the Group for which a commitment
iscalculatedbyindependentactuariesattheendof
eachnancialyear.
The actuarial assumptions used to determine the
liabilitiesvary accordingto theeconomic conditions
prevailinginthecountryinwhichtheplanislocated.
The discount rates applicable to discount post-
employmentbenetobligationsshouldbedetermined
by reference to the market yields on high quality
corporatebondsthatareappropriatetotheestimated
timingofbenetpaymentsatthebalancesheetdate.
TheGroupdecidedtocalculatediscountratesusingan
economicapproachfor 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
anddurationofthesecorporateorgovernmentbonds
must correspond to the currency and estimated
durationofthepost-employmentbenetobligations.
Thecostofcorrespondingcommitmentsisdetermined
using the projected unit credit method, with a
discountedvaluecalculationatthebalancesheetdate
inaccordancewiththeprinciplesofIAS19“Employee
Benets”.
Allchangesintheamountofdenedbenetpension
obligationsarerecognisedastheyoccur.
Remeasurements of dened benet pension
obligations,includingactuarialgainsandlosses,should
berecognisedimmediatelyin“Othercomprehensive
income”.
Thecostsofservicesrenderedduringtheperiod,past
servicecosts(planamendment)andnetinterestare
recognisedasanexpenseimmediately.
Theamountrecognisedinthestatementofnancial
positionisthepresentvalueofthepensionobligations
of the dened benet plans adjusted for actuarial
gainsandlossesandlessthefairvalueofplanassets.
1.21. 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
performanceobligationoccuratthesametime.
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;
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(b) for local sales, depending on the delivery
conditions,eitherwhenthegoodsleavethepremises
orwhenthecustomertakespossessionofthegoods.
Thisisthe moment whentheGroup has fullledits
performanceobligations.
Revenuesarevaluedat the transaction priceofthe
consideration received or receivable, which the
Companyexpectstobeentitledto.
The selling price is determined at the market price
andinafew cases thesellingpriceis contractually
determinedonaprovisionalbasis,basedonareliable
estimateofthesellingprice.Inthelattercase,price
adjustments can then take place depending on the
movementsbetweenthereferencepriceandthenal
price,asrecognised.
TheGroupconsidersbeingtheprincipalinitsrevenue
arrangements, because it controls the goods sold
beforetransferringthemtothecustomers.
As at 31
st
December 2021, revenue from the major
Group customer accounted for approximately
EUR 45.9 million (2020: EUR 35.4 million) of total
Group revenue.
1.22. Taxes
Currenttaxistheamountoftaxpayableorrecoverable
ontheprotorlossofanancialyear.
Temporary differences between the book values of
assetsandliabilitiesandtheirtaxbasesgiveriseto
therecognitionofadeferredtaxusingthetaxrates
whoseapplicationisprovidedforwhenreversingthe
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
subsidiariesandassociates,unlessthedateonwhich
the temporary difference will be reversed can be
checkedanditislikelythatitwillnotreverseinthe
foreseeablefuture.
A deferred tax asset is recognised to carry forward
unusedtaxlossesandtaxcreditstotheextentthatit
isprobablethatfuturetaxableprotswillbeavailable
onwhichtheseunusedtaxlossesandtaxcreditscan
becharged.
Deferred tax is recognised in the income statement
unless it relates to items that have been directly
recognised,eitherinequityorinothercomprehensive
income.
1.23. 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
resourcedecisionsforthesegments.
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
individualsocialaccountsathistoricalcost.
1.24. Use of estimates
For the preparation of consolidated nancial
statements in accordance with IFRS, Group
managementhashadtomakeassumptionsbasedon
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
whichtheGrouphasmadeestimates,mainlyconcern
the application of IAS 19 (Note 21), IAS 41 / IAS 2
(Notes6and15),IAS16(Note5),IAS36(Notes5,6
and8),IFRS9(Note24)andIFRS16(Note3).
Intheabsenceofobservabledatawithinthescopeof
IFRS13,theGroupmakesuseofamodeldevelopedto
assessthefairvalueofagriculturalproductionbased
on local production costs and conditions and local
sales(RefertoNote1.12).
Consolidated nancial statements
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This method is inherently more volatile than
assessmentathistoricalcost.
1.25. Going concern and impact of the
COVID-19 pandemic
During 2021, though the impact of the COVID-19
pandemic on the activities of the Company and its
subsidiarieswaslimited,themanagementhasadapted
tothenewconstraintsandispermanentlymonitoring
therisksrelated tothishealth crisis.The spread of
thevirusisstillactiveandunpredictable,whichbrings
uncertaintytoeconomicdevelopmentononesideand
tothecourseofbusinessaffairsontheotherside.
As of 31
st
December 2021, liabilities due within
12 months (EUR 180,163,989) do not exceed assets
duewithin12months(EUR208,919,991).
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
AFRICA
Rubber and palm
SOGB S.A. 63.69 73.16 FI 63.69 73.16 FI
PLANTATIONSSOCFINAFGHANA“PSG”LTD 100.00 100.00 FI 100.00 100.00 FI
OKOMUOILPALMCOMPANYPLC 65.23 65.23 FI 65.23 65.23 FI
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDUCameroon
“SAFACAM”S.A.
69.05 69.05 FI 69.05 69.05 FI
SOCIETECameroonAISEDEPALMERAIES“SOCAPALM”S.A.
67.46 67.46 FI 67.46 67.46 FI
Rubber
LIBERIANAGRICULTURALCOMPANY“LAC” 64.51 100.00 FI 100.00 100.00 FI
SALALARUBBERCORPORATION“SRC” 100.00 100.00 FI 100.00 100.00 FI
SUDCOMOËCAOUTCHOUC“SCC” 60.95 70.01 FI 60.95 70.01 FI
Palm
SOCFINAGRICULTURALCOMPANY“SAC”LTD 93.00 93.00 FI 93.00 93.00 FI
SOCIETEDESPALMERAIESDELAFERMESwitzerland“SPFS” 67.46 100.00 FI 67.46 100.00 FI
AGRIPALMALDA 88.00 88.00 FI 88.00 88.00 FI
BRABANTA S.A. 99.80 99.80 FI 99.80 99.80 FI
Other activities
BEREBY-FINANCES“BEFIN”S.A. 87.06 87.06 FI 87.06 87.06 FI
CAMSEEDSS.A. 67.61 100.00 FI 67.38 99.54 FI
Consolidated nancial statements
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EUROPE
Other activities
CENTRAGES S.A. 50.00 50.00 EM 50.00 50.00 EM
IMMOBILIEREDELAPEPINIERES.A. 50.00 50.00 EM 50.00 50.00 EM
INDUSERVICESS.A. 30.00 30.00 EM 30.00 30.00 EM
INDUSERVICESFRS.A. 50.00 50.00 EM 50.00 50.00 EM
MANAGEMENTASSOCIATESS.A. 20.00 20.00 EM 20.00 20.00 EM
SOCIETEANONYMEFORESTIEREAGRICOLE“SAFA” 64.51 100.00 FI 100.00 100.00 FI
SOCFINRESEARCHS.A. 0.00 0.00 NC 50.00 50.00 EM
SOCFINGREENENERGYS.A. 0.00 0.00 NC 50.00 50.00 EM
SOCFINCOS.A. 61.30 100.00 EM 50.00 50.00 EM
SOCFINCOFRS.A. 50.00 50.00 EM 50.00 50.00 EM
SOCFINDES.A. 20.00 20.00 EM 20.00 20.00 EM
SODIMEXS.A. 50.00 50.00 EM 50.00 50.00 EM
SODIMEXFRS.A. 50.00 50.00 EM 50.00 50.00 EM
SOGESCOLFRS.A. 50.00 50.00 EM 50.00 50.00 EM
STPINVESTS.A. 100.00 100.00 FI 100.00 100.00 FI
TERRASIA S.A. 33.28 33.28 EM 33.28 33.28 EM
(*) Consolidationmethod:FI:FullIntegration-EM:EquityMethod–NC:NotConsolidated
List of subsidiaries and associated companies
* AGRIPALMALDAisacompanylocatedontheislandofSãoTomé
andPrincipespecialisedintheproductionofpalmoil.
* BEREBY-FINANCES “BEFIN” S.A. is a holding company under
IvorianlawowningtheIvoriancompaniesSOGBS.A.andSCC.
* BRABANTAS.A.isacompanyunderCongoleselawspecialisedin
theproductionofpalmoil.
* CAMSEEDSS.A.isacompanyunderCameroonianlawspecialised
inresearch,developmentandproductionofseeds(palm).
* CENTRAGES S.A. is a company under Belgian law providing
administrativeandaccountingservicesandowningthreeoors
ofofcespaceinBrussels.
* IMMOBILIEREDELAPEPINIERES.A.isacompanyunderBelgian
lawowningthreeoorsofofcespaceinBrussels.
* INDUSERVICES S.A. is a company under Luxembourg law
whosepurposeis toprovideall administrative servicestoall
companies and organisations, including all services relating
todocumentation,bookkeepingandregisterservices,aswell
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,organisationsandcompanies,includingallservices
relatingtodocumentation,bookkeepingandregisterservices,
aswellasallrepresentation,studyandconsultationactivities.
and assistance. In addition, it provides all Group companies
withaccesstothecommonITplatform.
* LIBERIANAGRICULTURALCOMPANY“LAC“isacompanyunder
Liberianlawspecialisingintheproductionofrubber.
* MANAGEMENTASSOCIATESS.A.isacompanyunderLuxembourg
lawactiveinthetransportsector.
* OKOMUOILPALMCOMPANYPLCisacompanyunderNigerianlaw
specialisedintheproductionofpalmandrubberproducts.
* PLANTATIONSSOCFINAFGHANA“PSG”LTDisacompanyunder
Ghanaianlawspecialisedintheproductionofpalmandrubber
products.
* SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU Cameroon
“SAFACAMS.A.”isacompanyunderCameroonianlawactivein
theproductionofpalmoilandthecultivationofrubbertrees.
* SALALA RUBBER CORPORATION “SRC” is a company under
Liberian law active in the production of palm oil and the
cultivationofrubbertrees.
Consolidated nancial statements
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* SOCIETEDESPALMERAIESDELAFERMESwitzerland
“SPFS”S.A.isactiveinCameroonintheproduction,
processingandmarketingofpalmoil.
*SOCIETECAMEROUNAISEDEPALMERAIES“SOCAPALM
S.A.” is active in Cameroon in the production of
palmoilandrubbercultivation.
* SOCFIN AGRICULTURAL COMPANY “SAC” LTD is a
companylocatedinSierraLeonespecialisedinthe
productionofpalmoil.
*SOCFINCONSULTANTSERVICES“SOCFINCO”S.A.isa
companyestablishedinBelgiumprovidingtechnical
assistance,agronomicandnancialservices.
* SOCFINCO FR S.A. is a Swiss company providing
services,studiesandmanagementofagro-industrial
plantations.
*SOCIETEANONYMEFORESTIEREAGRICOLE“SAFA”is
a company under French law holding a stake in a
plantationinCameroon,SafacamS.A.
*SOCFINDE S.A.isananceholdingcompanyunder
Luxembourglaw.
* SODIMEXS.A.isBelgianprocurementcompany.
* SODIMEX FR S.A. is a company under Swiss law
activeintheeldofpurchaseandsaleofplanting
material.
* SOGBS.A.isacompanyunderIvorianlawspecialised
intheproductionofpalmandrubberproducts.
* SOGESCOLFRS.A.isaSwisscompanyactiveinthe
tropicalproductstrade.
*STPINVESTS.A.isacompanyunderBelgianlawwith
astakeinAgripalmaLDA.
* SUD COMOË CAOUTCHOUC “SCC” is a company
under Ivorian law whose activity is the processing
andmarketingofrubber.
* TERRASIAS.A isacompany underLuxembourglaw
owningofcespaces.
* SOCFINGREEENENERGYS.A.andSOCFINRESEARCH
S.A. have been removed from the consolidation
scopein2021,astheyweresubsequentlyliquidated.
Consolidated nancial statements
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Note 3. Leases
Theamountsrecognisedinthebalancesheetrelatedtoleasesareasfollows:
* Right-of-use assets:
EUR
Furniture,
vehicles and
other Buildings
Land and
concession of
agricultural
area Total
Gross value at 1
st
January 2020 5,240,412 672,615 7,370,230 13,283,257
Additionsoftheyear 2,639,259 0 0 2,639,259
Disposalsoftheyear 0 -136,602 -76,549 -213,151
Foreignexchangedifferences -541,783 -582 -173,387 -715,752
Gross value at 31
st
December 2020 7,337,888 535,431 7,120,294 14,993,613
Accumulated depreciation at 1
st
January 2020 -3,562,064 -406,745 -2,107,969 -6,076,778
Depreciationoftheyear -1,508,973 -38,391 -143,992 -1,691,356
Depreciationreversals 0 40,980 76,549 117,529
Foreignexchangedifferences 402,396 143 50,710 453,249
Accumulated depreciation at 31
st
December 2020
-4,668,641 -404,013 -2,124,702 -7,197,356
Net book value at 31
st
December 2020 2,669,247 131,418 4,995,592 7,796,257
Gross value at 1
st
January 2021 7,337,888 535,431 7,120,294 14,993,613
Additionsoftheyear 988,351 136,739 197,754 1,186,242
Disposalsoftheyear 0 0 0 136,602
Foreignexchangedifferences 8,302 -6 119,922 128,218
Gross value at 31
st
December 2021 8,334,541 672,164 7,437,970 16,444,675
Accumulated depreciation at 1
st
January 2021 -4,668,641 -404,013 -2,124,702 -7,197,356
Depreciationoftheyear -1,496,461 -24,728 -153,860 -1,675,049
Depreciationreversals 0 0 0 0
Foreignexchangedifferences -8,125 -40,979 -38,174 -87,278
Accumulated depreciation at 31
st
December 2021
-6,173,227 -469,720 -2,316,736 -8,959,683
Net book value at 31
st
December 2021 2,161,314 202,444 5,121,234 7,484,992
* Lease liabilities
2021 2020
EUR EUR
Long-termleaseliabilities 8,285,305 8,245,089
Short-termleaseliabilities 1,105,090 1,354,035
Total
9,390,395 9,599,124
Consolidated nancial statements
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Theamountsrecognisedintheincomestatementinrelationwiththeleasecontractsaredetailedasfollows:
2021 2020
EUR EUR
Depreciationofright-of-useassets 1,675,049 1,691,356
Expensesrelatedtoshorttermleasesandleasesoflow-valueassets 1,707,351 1,080,856
Interestexpense(includedinthenancialexpenses) 954,891 952,679
Total 4,337,291
3,724,891
Agriculturallandandconcessions
TheGroupdoesnotownallofthelandonwhichitsbiological-basedassetsareplanted.Ingeneral,theselands
aresubjecttoverylong-termconcessionsfromthelocalpublicauthority.Theseconcessionsarerenewable.
Company
Date of initial lease or
renewal extension
Duration of the
initial lease
Area
conceded
SOCFINAGRICULTURALCOMPANY“SAC”LTD 2013/2014 50years 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 50years 18,303 ha
OKOMUOILPALMCOMPANYPLC 1986/2001/2013 92 to 99 years 33,113 ha
SOCAPALMS.A. 2000 60 years 58,063ha
SAFACAMS.A. 2019 3 years 2,161 ha (4)
AGRIPALMALDA 2009 25years 4,252ha
(2)(5)
BRABANTA S.A. 2015/2018/2019 25years 8,689 ha
(1) Renewableconcessionsforatermof25years
(2) Concessionsrenewabletacitlyforperiodsof25years
(3) Extensibleconcessionsupto40,000ha
(4) SafacamS.A.owns15,529ha
(5) AgripalmaLDAowns665ha
Consolidated nancial statements
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Note 4. Intangible assets
EUR
Concessions
and patents Softwares
Other
intangible
assets TOTAL
Cost at 1
st
January 2020 2,394,106 766,007 1,639,842 4,799,955
Additions 0 0 137,143 137,143
Disposals 0 -7,339 -994,000 -1,001,339
Foreignexchangedifferences -286,133 -28,771 -17,917 -332,821
Cost at 31
st
December 2020 2,107,973 729,897 765,068 3,602,938
Accumulated depreciation at 1
st
January 2020 -209,644 -476,720 -1,301,490 -1,987,854
Depreciation -45,999 -25,988 -18,543 -90,530
Depreciationreversals 0 7,263 592,472 599,735
Foreignexchangedifferences 27,125 7,281 17,917 52,323
Accumulated depreciation at 31
st
December 2020 -228,518 -488,164 -709,644 -1,426,326
Net book value at 31
st
December 2020
1,879,455 241,733 55,424 2,176,612
Cost at 1
st
January 2021 2,107,973 729,897 765,068 3,602,938
Additions 0 915 2,752 3,667
Disposals 0 0 30 30
Foreignexchangedifferences 81,607 21,500 -178 102,929
Cost at 31
st
December 2021 2,189,580 752,312 767,672 3,709,564
Accumulated depreciation at 1
st
January 2021 -228,518 -488,164 -709,644 -1,426,326
Depreciation -42,968 -247,697 -12,857 -303,522
Foreignexchangedifferences -8,590 -12,388 178 -20,800
Accumulated depreciation at 31
st
December 2021 -280,076 -748,249 -722,323 -1,750,648
Net book value at 31
st
December 2021
1,909,504 4,063 45,349 1,958,916
Consolidated nancial statements
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Note 5. 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
12,144,018 219,030,202 126,015,668 202,728,022 19,224,022 144,313 579,286,245
Additions(*)
242,298 8,659,488 10,174,256 3,898,583 23,212,303 134,103 46,321,031
Disposals
-150,664 -1,607,458 -4,867,047 -5,461,848 0 0 -12,087,017
Reclassicationstootherassetclasses
-1,711,413 4,755,179 -324,407 7,857,424 -12,628,984 -28,640 -2,080,841
Foreignexchangedifferences
-1,690,673 -12,323,511 -11,129,811 -8,850,507 -3,029,939 -908 -37,025,349
Cost at 31
st
December 2020
8,833,566 218,513,900 119,868,659 200,171,674 26,777,402 248,868 574,414,069
Accumulated depreciation at 1st January 2020
-1,289,703 -108,005,212 -62,020,127 -150,965,224 0 0 -322,280,266
Depreciation
-15,278 -11,204,067 -7,787,366 -12,148,359 0 0 -31,155,070
Depreciationreversals
135,990 1,130,088 4,248,872 5,139,505 0 0 10,654,455
Reclassicationstootherassetclasses
0 0 2,233,697 -1,864,268 0 0 369,429
Foreignexchangedifferences
5,449 4,124,249 3,985,834 6,873,317 0 0 14,988,849
Accumulated depreciation at 31
st
December 2020
-1,163,542 -113,954,942 -59,339,090 -152,965,029 0 0 -327,422,603
Net book value at 31
st
December 2020
7,670,024 104,558,958 60,529,569 47,206,645 26,777,402 248,868 246,991,466
Cost at 1
st
January 2021
8,833,566 218,513,900 119,868,659 200,171,674 26,777,402 248,868 574,414,069
Additions(*)
470,766 6,994,838 22,299,730 10,310,803 9,533,518 406,203 50,015,858
Disposals
-24,592 -107,278 -242,806 -4,059,360 0 0 -4,434,036
Reclassicationstootherassetclasses
-1,051,159 13,867,215 4,565,872 2,225,091 -19,174,963 0 432,056
Foreignexchangedifferences
38,115 5,519,899 1,992,688 2,769,275 618,290 3,025 10,941,292
Cost at 31
st
December 2021
8,266,696 244,788,574 148,484,143 211,417,483 17,754,247 658,096 631,369,239
Accumulated depreciation at 1
st
January 2021
-1,163,542 -113,954,942 -59,339,090 -152,965,029 0 0 -327,422,603
Depreciation
-23,629 -9,607,730 -7,760,055 -14,583,288 0 0 -31,974,702
Depreciationreversals
10,437 634,753 249,229 3,637,700 0 0 4,532,119
Reclassicationstootherassetclasses
2,470 -191,384 2,768 186,146 0 0 0
Foreignexchangedifferences
-1,308 -2,051,412 -519,958 -2,344,224 0 0 -4,916,902
Accumulated depreciation at 31
st
December 2021
-1,175,572 -125,170,715 -67,367,106 -166,068,695 0 0 -359,782,088
Accumulated impairment at 1
st
January 2021 0 0 0 0 0 0 0
Impairment(**) 0 0 -1,728,058 -182,271 0 0 -1,910,329
Accumulated impairment at 31
st
December 2021
0 0 -1,728,058 -182,271 0 0 -1,910,329
Net book value at 31
st
December 2021
7,091,124 119,617,859 79,388,979 45,166,517 17,754,247 658,096 269,676,822
(*)Additionsfortheperiodincludecapitalisedcosts(seenote32fordetailsonadditionsfortheperiod)
(**)Impairmenttestonproperty,plantandequipmentisdisclosedinNote8
As at 31
st
December2021,theGrouphastechnicalinstallationsandprofessionalequipmentpledgedasguaranteesforborrowingsof
theGroupforanamountofEUR11million(2020:EUR15million).DetailsoftheseguaranteesareprovidedinNote31.
Consolidated nancial statements
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Note 6. Biological assets
Palm Rubber Others Total
EUR Mature Immature Mature Immature
Cost at 1
st
January 2020 376,507,556 13,494,378 143,255,572 75,133,312 14,348 608,405,166
Additions(*) 210,174 6,913,533 81,726 8,516,447 0 15,721,880
Disposals -3,432,626 0 -1,369,948 0 -7,217 -4,809,791
Reclassicationstootherassetclasses 13,341,873 -11,835,465 3,354,014 -3,149,009 0 1,711,413
Foreignexchangedifferences -30,772,003 -1,254,892 -6,986,219 -5,989,342 0 -45,002,456
Cost at 31
st
December 2020 355,854,974 7,317,554 138,335,145 74,511,408 7,131 576,026,212
Accumulated depreciation at 1
st
January 2020 -99,263,299 0 -51,703,869 0 -10,209 -150,977,377
Depreciation -14,961,245 0 -6,176,906 0 -56 -21,138,207
Depreciationreversals 3,432,626 0 1,117,483 0 7,217 4,557,326
Foreignexchangedifferences 3,585,528 0 2,695,266 0 0 6,280,794
Accumulated depreciation at 31
st
December 2020
-107,206,390 0 -54,068,026 0 -3,048 -161,277,464
Accumulated impairment at 1
st
January 2020 -24,302,445 -127,951 -12,070,232 -15,441,984 0 -51,942,612
Impairment(**) -271,036 0 -509,870 -4,556,078 0 -5,336,984
Reclassicationstootherassetclasses -113,583 113,583 0 0 0 0
Foreignexchangedifferences 3,592,271 14,368 933,585 1,683,173 0 6,223,396
Accumulated impairment at 31
st
December 2020
-21,094,793 0 -11,646,517 -18,314,889 0 -51,056,200
Net book value at 31
st
December 2020 227,553,791 7,317,554 72,620,602 56,196,519 4,083 363,692,548
Cost at 1
st
January 2021 355,854,974 7,317,554 138,335,145 74,511,408 7,131 576,026,212
Additions(*) 0 3,397,554 0 9,502,688 0 12,900,242
Disposals -641,757 -518,073 -1,585,313 -22,125 0 -2,767,268
Reclassicationstootherassetclasses 3,863,596 -3,777,156 36,189,869 -36,096,036 0 180,273
Foreignexchangedifferences 10,314,967 86,533 4,986,596 2,356,489 0 17,744,585
Cost at 31
st
December 2021 369,391,780 6,506,412 177,926,297 50,252,424 7,131 604,084,044
Accumulated depreciation at 1
st
January 2021 -107,206,390 0 -54,068,026 0 -3,048 -161,277,464
Depreciation -14,929,640 0 -4,289,754 0 -56 -19,219,450
Depreciationreversals 433,948 0 1,629,222 0 0 2,063,170
Reclassicationstootherassetclasses -1,552,584 0 0 0 0 -1,552,584
Foreignexchangedifferences -1,591,618 0 -1,511,154 0 0 -3,102,772
Accumulated depreciation at 31
st
December 2021
-124,846,284 0 -58,239,712 0 -3,104 -183,089,100
Accumulated impairment at 1
st
January 2021 -21,094,793 0 -11,646,517 -18,314,889 0 -51,056,199
Impairment(**) -6,090,512 0 0 0 0 -6,090,512
Impairmentreversal 5,434,846 0 0 0 0 5,434,846
Reclassicationstootherassetclasses 0 0 -16,480,949 16,480,949 0 0
Foreignexchangedifferences -1,078,246 3 -1,494,650 -806,209 0 -3,379,102
Accumulated impairment at 31
st
December 2021
-22,828,705 3 -29,622,116 -2,640,149 0 -55,090,967
Net book value at 31
st
December 2021 221,716,791 6,506,415 90,064,469 47,612,275 4,027 365,903,977
(*)Additionsfortheperiodincludecapitalisedcosts(seenote32fordetailsonadditionsfortheperiod)
(**)ImpairmenttestonbiologicalassetsisdisclosedinNote8
On 31
st
December 2021, the Group has biological assets pledged as guarantees for borrowings of the Group for an amount of
EUR13million(2020:EUR21million).DetailsoftheseguaranteesareprovidedinNote31.
Accountingpolicyregardingcurrentbiologicalassetsisdisclosedinnote1.12.
Consolidated nancial statements
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Note 7. Depreciation and impairment
2021 2020
EUR EUR
Depreciation
Ofright-of-useassets(note3) 1,675,049 1,691,356
Ofintangibleassets(Note4) 303,522 90,530
Ofproperty,plantandequipmentexcludingbiologicalassets(Note5) 31,974,702 31,155,070
Ofbiologicalassets(Note6) 19,219,450 21,138,207
Impairment
Ofproperty,plantandequipmentexcludingbiologicalassets(Note5) 1,910,329 0
Ofbiologicalassets(Note6) 655,666 5,336,984
Total at 31
st
December 55,738,718 59,412,147
Note 8. Impairment of assets
Goodwill
Impairmenttestsongoodwillareperformedatleast
onceayeartoassesswhetherthecarryingamountis
stillappropriate.
Intangible and tangible assets and right-of-
use assets
At each reporting closing 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
suchindicationexists,therecoverableamountofthe
asset isestimatedtodetermine,theamountofthe
impairmentloss.
As at 31
st
December 2021, an impairment loss of
EUR1.9millionwasrecognisedonProperty,plantand
equipment(2020:EURnil).
Bearer biological assets
Ateachreportingdate,theGroupassessesifthereisany
indicationthatitsbiologicalassetsmaybeimpaired.
Forthispurpose,theGroupassessesseveralindicators:
Thesignicantandsustaineddecreasingtrendinthe
prices of natural rubber (TSR20 1
st
position on SGX)
and crude palm oil (CIF Rotterdam) was considered
anobservablesignthatthebiologicalassetsmayhave
beenimpaired.Adecreaseinthesepricesatreporting
date greater than 15% compared to an average of
5-year value has been set by the Group to be an
impairmentindicator.
At 31
st
December 2021, the decrease in prices does
notexceed15%oftheaveragepriceoverthepast5
yearsfortherubberandpalmsegment.
TheGroupconsiders,aswell,averagepricesoverthe
sixmonthsbeforereportingdateandaverageprices
over the last twelve months instead of only closing
pricestoavoidseasonaluctuationsinthepricesof
supplymaterials.
TheGroupreviewsalsothepricesofpalmoilobserved
on local market and considers a decrease in these
pricesattheclosingdateofmorethan15%compared
toanaverageofvaluesover5yearsasanimpairment
indicator.
Basedonthesecriteria,fortherubbersegment,the
riseinpricesobservedduringthenancialyear2021
doesnot exceed15% ofthe averageprices overthe
past 5 years. For the palm segment, the review of
Consolidated nancial statements
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globalandlocalpricesdonotindicateanyimpairment
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
recoverableamountofthebearerbiologicalassetsis
determined.
Impairmenttestsmustbeperformedonthesmallest
identiable group of assets which generates cash
owsindependentlyofotherassetsorgroupsofassets
“CGU” and for which the Group prepares nancial
informationfortheBoardofDirectors.
The identication of Cash Generating Units (CGUs)
depends,inparticular,on:
- howtheGroupmanagestheactivitiesoftheentity;
- thewayinwhichdecisionsaremadewithregards
tothepursuitorthedisposalofitsactivitiesand;
- theexistenceofanactivemarketforallorpartof
theproduction.
TheGroupconsidersthepoliticalandcountryspecic
risk factors while reviewing business evolution.
Therefore,companies are grouped within the CGU
country.
Therecoverableamountofbearerbiologicalassetsis
determinedfromthecalculationofvalueinuseusing
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
youngerbearerbiologicalassets.Theoperationallife
rangesbetween25and30yearsforbothcrops.This
period can be adapted according to the particular
circumstances for each entity.
Thevalue inuse calculationhasbeenverysensitive
to:
- changesinthemarginsachievedbytheentityand
- changesrelatedtodiscountrates.
Changes in realised margins
Initially, the Group determines separately the
expected production of each category of bearer
biologicalassetswithintheentityovertheirremaining
life. This expected production is estimated on the
basisofthe surfaceareasplanted atreportingdate
aswellastheactualcropyieldrecordedduringthe
nancialyearwhichdependsonthematurityofthe
bearerbiologicalasset.Productionisthenvaluedon
averagebasisofve-yearofthemarginsachievedby
the entity in relation to agricultural activities. 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
ofthenancialprojection.Anindexingfactorisnot
considered.
Based on the existence of an impairment indication
and following subsequent impairment tests,
impairment losses of EUR 6.1 million forAgripalma
havebeenaccountedforin2021(Notes6and7),and
animpairmentreversalofEUR5.2millionforPSGhas
beenaccountedforin2021.
At 31
st
December 2021, accumulated impairment
lossesinthepalmbusinesssegmentamountedtoEUR
9.4millionforBrabanta,EUR9.2millionforAgripalma
andEUR4.3millionforSAC.Fortherubbersegment,
the accumulated impairment losses are EUR 28.9
millionforSRC,EUR1.9millionforPSGandEUR1.4
millionforSafacam(Note6).
Consolidated nancial statements
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Note 9. 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 Ivory Coast 36% 36% 27% 27%
OKOMUOILPALMCOMPANYPLC Nigeria 35% 35% 35% 35%
SOCIETEAFRICAINEFORESTIEREET
AGRICOLEDUCameroon“SAFACAM”
Cameroon 31% 31% 31% 31%
SOCIETECameroonAISEDEPALMERAIES
“SOCAPALM”
Cameroon 33% 33% 33% 33%
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 8,543,723 4,047,308 37,590,418 32,407,267
OKOMUOILPALMCOMPANYPLC 10,771,914 6,597,953 32,376,319 26,065,397
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDU
Cameroon“SAFACAM”
1,205,702 63,023 14,704,129 13,989,613
SOCIETECameroonAISEDEPALMERAIES“SOCAPALM” 7,290,049 5,928,062 31,143,226 32,570,920
Subsidiariesthatholdnon-controllingintereststhatarenotsignicantindividually 5,391,194 4,108,011
Non-controlling interests 121,205,286 109,141,208
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
liabities
2020 EUR EUR EUR EUR
SOGB 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
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDU
Cameroon“SAFACAM”
9,988,293 35,298,471 10,601,283 4,763,103
SOCIETECameroonAISEDEPALMERAIES“SOCAPALM” 34,148,638 112,062,872 28,625,313 3,099,446
2021 EUR EUR EUR EUR
SOGB
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
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDU
Cameroon“SAFACAM”
14,000,204 34,504,233 10,924,741 5,404,975
SOCIETECameroonAISEDEPALMERAIES“SOCAPALM”
26,800,996 109,893,878 25,202,975 3,069,977
Consolidated nancial statements
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Subsidiary
Revenue from
ordinary
activities
Net income
for the year
Comprehen-
sive income
for the year
Dividends
paid to non-
controlling
interests
2020 EUR EUR EUR EUR
SOGB 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
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDUCameroon
“SAFACAM”
25,489,988 1,036,538 1,036,538 307,960
SOCIETECameroonAISEDEPALMERAIES“SOCAPALM” 108,244,754 17,958,810 17,958,810 5,595,101
2021 EUR EUR EUR EUR
SOGB 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
SOCIETEAFRICAINEFORESTIEREETAGRICOLEDUCameroon
“SAFACAM”
32,790,020 3,778,438 3,778,438 305,252
SOCIETECameroonAISEDEPALMERAIES“SOCAPALM” 114,731,158 20,617,398 20,617,398 8,682,053
Net cash inows (outows)
Net cash
inows
(outows)Subsidiary
Operating
activities
Investing
activities
Financing
activities
2020 EUR EUR EUR EUR
SOGB
18,235,177 -8,094,545 -2,391,962 7,748,669
OKOMUOILPALMCOMPANYPLC
25,629,989 -22,258,792 1,220,468 4,591,664
SOCIETEAFRICAINEFORESTIEREETAGRICOLE
DUCameroon“SAFACAM”
3,582,099 -2,172,371 -4,103,182 -2,693,455
SOCIETECameroonAISEDEPALMERAIES“SOCA-
PALM”
28,811,505 -12,241,938 -21,591,792 -5,022,224
2021 EUR EUR EUR EUR
SOGB
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
SOCIETEAFRICAINEFORESTIEREETAGRICOLE
DUCameroon“SAFACAM”
2,315,684 -2,647,396 337,688 5,976
SOCIETECameroonAISEDEPALMERAIES“SOCA-
PALM”
30,591,306 -9,720,446 -30,342,263 -9,471,402
ThenatureandevolutionoftherisksassociatedwiththeinterestsheldbytheGroupinthesubsidiariesremained
stableoverthenancialperiodcomparedtothepreviousyear.
Consolidated nancial statements
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Note 10. Investments in associates
2021 2020
EUR EUR
Value at 1
st
January 22,149,858 24,631,982
Disposalofassociates -2,274,586 0
Income from associates 7,264,009 1,259,361
Dividends -3,383,509 -3,302,248
Fairvaluechangefornancialassetsmeasuredatfairvaluethroughother
comprehensiveincome(loss)
316,401 -256,759
Other movements -452,184 -182,478
Value at 31
st
December 23,619,989 22,149,858
Value of
investment in
associates
Income from
associates
Value of
investment in
associates
Income from
associates
2021 2021 2020 2020
EUR EUR EUR EUR
Centrages 3,434,524 241,051 3,193,473 111,847
ImmobilièredelaPépinière 1,864,426 -46,822 1,911,465 -10,063
Induservices 71,857 1,018 70,840 1,181
InduservicesFR 0 164,940 0 0
ManagementAssociates 245,799 531,279 0 -283,098
SocnGreenEnergy 0 -641,650 690,433 -62,402
SocnResearch 0 1,140,424 1,688,497 -86,438
Socnco 775,183 20,607 879,575 106,997
SocncoFR 7,364,276 3,386,981 3,979,744 485,331
Socnde 1,700,089 120,699 1,579,390 -501,529
Sodimex 153,374 1,557 151,817 -15,630
SodimexFR 1,890,380 227,628 2,034,941 -148,878
SogescolFR 5,845,483 2,106,457 5,704,929 1,652,820
Terrasia 274,591 9,841 264,754 9,223
TOTAL
23,619,982 7,264,010 22,149,858 1,259,361
Consolidated nancial statements
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Total assets
Revenue
Total assets
Revenue
2021 2021 2020 2020
EUR EUR EUR EUR
Centrages 4,052,720 4,128,202 3,561,650 2,800,921
Immobilière de la Pépinière 3,983,909 510,366 4,146,061 475,678
Induservices 1,853,192 3,128,650 2,673,288 3,925,673
Induservices FR 6,611,187 2,779,036 6,168,015 2,032,070
Management Associates 12,567,871 3,438,858 12,615,725 2,632,406
Socn Green Energy 0 0 1,440,953 80,031
Socn Research 0 0 3,712,948 8,820
Socnco 2,456,705 20,569 1,905,106 1,625,471
Socnco FR 25,583,207 25,179,023 19,665,969 19,932,749
Socnde 38,659,255 0 54,070,655 0
Sodimex 306,953 0 390,466 0
Sodimex FR 8,634,788 14,238,890 13,585,753 19,828,809
Sogescol FR 46,421,846 371,317,721 30,474,004 253,824,637
Terrasia 593,179 33,238 555,055 33,238
TOTAL 151,724,812 424,774,553 154,965,648 307,200,503
Main data of signicant associates accounted for using the equity method
Associate company Main location Main activity
Dividend
received
Dividend
received
2021 2020
EUR EUR
Socnco Belgium Rendering of services 125,000 100,000
Socnco FR Switzerland Rendering of services 1,000,000 0
Sodimex FR Switzerland Procurement 250,000 0
Sogescol FR Switzerland Trade of tropical products 1,885,091 3,142,960
Consolidated nancial statements
Consolidated nancial statements
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Summary nancial information of interests held in associates - Statement of nancial position
Associate company Current assets
Non-current
assets
Current
liabilities
Non-current
liabilities
2020 EUR EUR EUR EUR
Management Associates 615,220 12,000,505 2,578,637 7,600,000
Socnco FR 12,579,220 7,086,748 3,264,021 5,091,650
Socnde 43,559,068 10,511,587 41,702,773 6,494,599
Sodimex FR 13,571,469 14,284 9,450,637 0
Sogescol FR 29,587,310 886,694 19,485,837 0
TOTAL 99,912,287 36,499,818 76,481,905 19,186,249
2021 EUR EUR EUR EUR
Management Associates 1,424,905 11,142,966 2,868,219 7,000,000
Socnco FR 19,608,845 5,974,362 4,970,769 5,014,035
Socnde 28,727,668 9,931,587 26,346,328 6,429,674
Sodimex FR 8,585,658 49,131 4,585,941 0
Sogescol FR 45,509,154 912,692 33,230,531 0
TOTAL 103,856,230 28,010,738 72,001,788 18,443,709
Summary nancial information of interests held in associates - Income statement
Associate company
Prot from
operations
Net income for
the year
Comprehensive
income for the year
2020 EUR EUR EUR
Management Associates -167,918 -167,918 -167,918
Socnco FR 1,535,347 1,535,347 1,535,347
Socnde -67,644 -67,644 -67,644
Sodimex FR 405,746 405,746 405,746
Sogescol FR 3,282,437 3,282,437 3,282,437
TOTAL 4,987,968 4,987,968 4,987,968
2021 EUR EUR EUR
Management Associates 262,563 262,563 262,563
Socnco FR 6,288,105 6,288,105 6,288,105
Socnde 9,970 9,970 9,970
Sodimex FR 413,732 413,732 413,732
Sogescol FR 5,129,175 5,129,175 5,129,175
TOTAL 12,103,545 12,103,545 12,103,545
Consolidated nancial statements
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Reconciliation of the nancial information summarised above to the carrying amount of the investments
in the consolidated nancial statements
Associate company
Net assets of the
associate
% stake held by
the Group
Other IFRS
adjustments
Value of stake held
by the Group
2020 EUR EUR EUR
Management Associates 2,437,088 20% -487,418 0
Socnco FR 11,310,297 50% -1,675,405 3,979,744
Socnde 5,873,283 20% 404,733 1,579,390
Sodimex FR 4,135,116 50% -32,617 2,034,941
Sogescol FR 10,988,167 50% 210,846 5,704,929
TOTAL 34,743,951 -1,579,861 13,299,004
2021 EUR EUR EUR
Management Associates 2,699,652 20% -294,131 245,799
Socnco FR 15,598,403 50% -434,926 7,364,276
Socnde 5,883,253 20% 523,438 1,700,089
Sodimex FR 4,048,848 50% -134,044 1,890,380
Sogescol FR 13,191,315 50% -750,175 5,845,483
TOTAL 41,421,471 -1,089,838 17,046,027
There is no goodwill attributed to the above associates.
Aggregated information relating to associates that are not signicant individually
2021 2020
EUR EUR
Share of prot from continued operations attributable to the Group 1,117,037 -78,533
Share of other comprehensive income attributable to the Group 1,117,037 -78,533
Total book value of investments in associates held by the Group 6,573,955 8,850,854
After tax prot from discontinued operations and
other comprehensive income for the year for 2021 and
2020 are nil for all associate companies of the Group.
The nature, extent and nancial impact of the
interests held in associates by the Group, including
the nature of relationships with other investors,
remained stable over the nancial period compared
to the previous year.
Consolidated nancial statements
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Note 11. Financial assets at fair value through other comprehensive income
2021
2020
EUR EUR
Fair value at 1
st
January 91,902 91,902
Disposals -91,864 0
Fair value at 31
st
December 38 91,902
EUR Cost (historical) Fair value
2021 2020 2021 2020
Financial assets at fair value through other
comprehensive income
38 47,570 38 91,902
Note 12. Deferred taxes
* Components of deferred tax assets and liabilities
2021 2020
EUR EUR
IAS 2/IAS 41: Agricultural production -2,043,880 -58,802
IAS 12: Tax credits -108,261 -1,982,172
IAS 16: Property, plant and equipment -3,761,922 -3,939,963
IAS 19: Pension obligations 2,063,354 2,746,718
IAS 21: Translation differences -40,261 14,909
IAS 37: Provisions for risks and charges 279,695 -22,230
IAS 38: Formation expenses 513,556 994,430
IAS 38: Research costs 293,716 368,563
IFRS 9: Financial assets measured at fair value through other
comprehensive income
-56,587 40,127
IFRS 16: Leases 506,903 476,211
IFRS 3: Fair value of investment property -15,614 -14,384
Others 381,479 258,717
Balance at 31
st
December -1,987,822 -1,117,876
Of which deferred tax assets 9,421,068 8,639,695
Of which deferred tax liabilities -11,408,890 -9,757,571
* Contingent tax assets and liabilities
The above deferredtax are presented per category
of deferred taxes resulting from consolidated
adjustments. They are calculated company and the
net position between deferred tax liabilities and
deferred tax assets is presented.
Some of the subsidiaries have accumulated tax losses
that are limited or not over time 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 latencies.
Consolidated nancial statements
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Brabanta, SRC, Agripalma and Camseeds, have
unused tax losses which recoverability is uncertain of
EUR 20.7 million, EUR 17.8 million, EUR 5.4 million and
EUR 3.0 million respectively at 31
st
December 2021.
Socnaf has unused tax losses of EUR 125.9 million.
No deferred tax assets have been booked in respect of
these tax credits.
Note 13. Current tax assets and liabilities
* Components of current tax asssets
2021 2020
EUR EUR
Current tax assets at 1
st
January 12,802,007 11,631,085
Tax income 253,048 952,924
Other taxes -1,988,902 1,982,029
Taxes paid or recovered 1,457,303 35,610
Tax adjustments 460,557 -852,544
Foreign exchange differences 394,513 -947,097
Current tax assets at 31
st
December 13,378,526 12,802,007
* Components of current tax liabilities
2021 2020
EUR EUR
Current tax liabilities at 1
st
January 20,857,243 18,520,497
Tax expense 22,769,738 20,741,401
Other taxes (*) 38,170,123 26,038,612
Taxes paid or recovered -44,998,165 -42,975,770
Tax adjustments -6,458,667 -455,657
Foreign exchange differences 68,552 -1,011,840
Current tax liabilities at 31
st
December 30,408,824 20,857,243
(*) Other taxes are compased of taxes not enclosed in general tax expenses : VAT, withholding tax, custom
tax, ...
Consolidated nancial statements
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Note 14. Income tax expense
* Components of the tax expense
2021 2020
EUR EUR
Current income tax expense (*) 28,856,992 20,318,842
Deferred tax expense / (income) 718,754 -1,131,780
Tax expense at 31
st
December 29,575,746 19,187,062
(*) Withholding tax on dividends is presented within income tax expense. In 2020, a withholding tax amount of EUR 0.5 million
was misclassied within the caption «Other operating expenses». For better comparison with prior year, a correction has been
been applied on the 2020 nancial year comparative gures.
* Components of the deferred tax (expense) / income
2021
2020
Restated
EUR EUR
IAS 19: Pension obligations 168,783 362,236
IAS 38: Intangible assets 615,930 67,353
IAS 2 / IAS 41: Fair value of agricultural produce 1,970,210 -872,143
IFRS 3: Fair valuation of buildings 0 -92,662
IAS 12: Tax credits -1,755,604 3,422,776
IAS 16: Tangible assets -15,338 -2,798,648
IAS 37: Provisions for risks and charges -296,810 -1,265,337
IAS 21: Foreign exchange differences 55,169 -76,027
IFRS 16: Leases -18,260 87,889
Others -105,162 32,783
Deferred tax expense / (income) at 31
st
December 718,753 -1,131,780
* Reconciliation of income tax expense
Consolidated nancial statements
Socnaf S.A.
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2021
2020
Restated
EUR EUR
Prot before tax from continuing operations 124,039,747 31,056,680
Nominal tax rate of the parent company 24.94% 24.94%
Nominal tax rate of subsidiaries from 1% to 33% from 24.9% to 38.5%
Income tax at nominal tax rates of subsidiaries 28,072,195 12,622,954
Unfunded taxes -36,334 639,874
Denitively taxed income 2,096,157 206,499
Use of capital allowances -11,555,282 -7,737,940
Specic tax regimes in foreign countries 10,444,393 5,221,406
Non-taxable income -4,545,080 -734,058
Non-deductible expenses 5,425,363 3,303,703
Use of accumulated tax losses -6,790,311 0
Losses carried forward 5,716,643 6,684,089
Other tax benets -91,063 -291,178
Additional tax assessment 23,775 164,325
Impact of change in tax rate 819,090 -878,711
Other adjustments -3,800 -13,901
Tax expense at 31
st
December 29,575,746 19,187,062
* Change of rate for the subsidiaries
SAFA’s tax rate has been reduced from 33% to 28%.
Since 2021, companies listed in Cameroon are eligible
for a reduced tax rate of 27.5%.
* Tax adjustments
In 2021, the Liberian tax authorities conducted a tax
audit for the years 2013 to 2018. Following this audit,
the tax authorities conrmed a loss carried 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 15. Inventories
* Carrying value of inventories by category
2021 2020
EUR EUR
Raw materials 27,113,530 21,464,125
Consumables 18,792,579 15,629,107
Spare parts 26,307,919 25,597,340
Production in progress 655,035 865,520
Finished products 21,996,097 17,176,189
Down-payments and orders in progress 2,037,012 5,269,278
Gross amount (before impairment) at 31
st
December 96,902,172 86,001,559
Inventory write-downs -4,057,300 -3,430,238
Net amount at 31
st
December 92,844,872 82,571,321
* Reconciliation of inventories
2021 2020
EUR EUR
Situation at 1
st
January 86,001,559 84,600,086
Change in inventory 3,669,769 9,960,496
Fair value of agricultural products 5,691,697 -2,992,208
Foreign exchange differences 1,539,147 -5,566,815
Gross amount (before impairment) at 31
st
December 96,902,172 86,001,559
Inventory write-downs -4,057,300 -3,430,238
Net amount at 31
st
December 92,844,872 82,571,321
* Quantity of inventory by category
2020 Raw materials
Production-in-
progress
Finished goods
Palm oil (tons) 1,374 0 11,720
Rubber (tons) 28,728 0 10,464
Others (units) 0 0 806,304
2021 Raw materials
Production-in-
progress
Finished goods
Palm oil (tons) 1,346 0 37,879
Rubber (tons) 30,608 0 12,595
Others (units) 0 0 2,884,630
Consolidated nancial statements
Socnaf S.A.
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Note 16. Trade receivables (Current assets)
2021 2020
EUR EUR
Trade receivables 23,628,781 12,775,954
Advances and prepayments 4,556,551 14,255,412
Total at 31
st
December 28,185,332 27,031,366
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 17. Other receivables (current assets)
2021 2020
EUR EUR
Social security 1,250,009 1,229,915
Other receivables (*) 7,313,455 11,040,263
Accrued charges 432,058 1,349,713
At 31
st
December 8,995,522 13,619,891
(*) Other receivables include receivables linked to non-operational activities
The accounting and risk management policies related to receivables are detailed in Notes 1 and 33.
Note 18. Cash and cash equivalents
* Reconciliation with the amounts in the nancial statements
2021 2020
EUR EUR
Current account 63,091,772 35,372,991
Balance at 31
st
December 63,091,772 35,372,991
* Reconciliation with the cash ow statement
2021 2020
EUR EUR
Current account 63,091,772 35,372,991
Bank overdrafts -7,029,326 -4,058,321
Balance at 31
st
December 56,062,446 31,314,670
Consolidated nancial statements
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Note 19. Share capital and share premium
Issued and fully paid capital amounted to
EUR 35.7 million as at 31
st
December 2021 (no change
compared to 2020). There is a share premium of EUR
87.5 million added to the subscribed capital.
As at 31
st
December 2021, the share capital is
represented by 17,836,650 shares with no designation
of par value.
In accordance with the law of on 28
th
July 2014 on
the immobilisation of bearer shares, 17,550 shares
(i.e. 0.10% of the capital) have been cancelled, as
the holders of these shares have not registered with
a depositary as required by law. The proceedings with
the Caisse de Consignation are still in progress to date.
Ordinary shares
2021 2020
Number of Shares at 31
st
December 17,836,650 17,836,650
Number of fully paid shares issued without designation of par value 17,836,650 17,836,650
Note 20. Legal reserves
In accodance with Luxembourg commercial law, the
Company is required to allocate a minimum of 5% of
its net prot for each nancial year to a legal reserve.
This requirement ceases to be necessary once the
balance on the legal reserve reaches 10% of the issued
share capital. The legal reserve is not available for
distribution to the shareholders.
Consolidated nancial statements
Socnaf S.A.
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Note 21. Pension obligations
Dened benet pension plan and post-employment sickness
Besides the legislation on social security applicable locally,
most of the employees of the Group in Africa enjoy a dened
benet pension plan. The subsidiaries pay benets in the event
of retirement and depending on countries in case of dismissal.
The benets paid are calculated 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 staff of the Cameroonian subsidiary
Socapalm are nanced by assets that include insurance contracts
whose price is not quoted on active markets.
2021
EUR
2020
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
Assets and liabilities recognised in
the statement of nancial position
Present value of obligations 13,768,201 -1,713,679 12,054,522 14,593,998 -1,382,636 13,211,362
Net amount recognised in the statement of
nancial position for dened benet plans
13,768,201 -1,713,679 12,054,522 14,593,998 -1,382,636 13,211,362
Components of net charge
Current service costs 887,817 0 887,817 635,299 0 635,299
Financial costs 866,521 23,257 889,778 1,124,313 23,443 1,147,756
Actuarial gains and losses recognised
during the year
-106,422 -106,422 -81,539 -81,539
Past service costs 0 4,952 4,952
Dened benet plan costs 1,754,338 -83,165 1,671,173 1,764,564 -58,096 1,706,468
Movements in liabilities / net assets
recognised in the statement of nancial
position
At 1
st
January 14,593,998 -1,382,636 13,211,362 10,720,072 -990,700 9,729,372
Costs as per income statement 1,754,338 -83,165 1,671,173 1,764,564 -58,096 1,706,468
Contributions by employer -462,666 -664,485 -1,127,151 -529,622 -669,804 -1,199,426
Costs of services rendered -273,567 273,567 0 -275,798 275,798 0
Actuarial gains and losses of the year recognised
in other comprehensive income
-2,062,162 51,073 -2,011,089 4,300,826 60,166 4,360,992
Reclassication of net asset 91,967 91,967 0
Foreign exchange differences 218,259 218,259 -1,386,044 -1,386,044
At 31
st
December 13,768,201 -1,713,679 12,054,521 14,593,998 -1,382,636 13,211,362
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
EUR
2020
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 139,152 139,152 491,737 0 491,737
Changes in nancial assumptions related to
recognised liabilities
2,229,828 2,229,828 -4,623,006 0 -4,623,006
Changes in demographic assumptions related to
recognised liabilities
-306,816 -306,816 -169,557 0 -169,557
Return on assets in the plan -51,073 -51,073 -60,166 -60,166
Actuarial gains and losses recognised during
the period in other comprehensive income
2,062,164 -51,073 2,011,091 -4,300,826 -60,166 -4,360,992
Actuarial valuation assumptions
2021 2020
AFRICA
Average discount rate from 2.63% to 12.61% from 1% to 15,30%
Future salary increases from 1.74% to 12% from 2 to 15,66%
Average remaining active life of employees (in years) 19.50 19.60
Sensitivity analyses of the actuarial value of dened benet obligations
2021 2020
EUR EUR
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)
Increase of 0.5% 13,316,089 14,173,364
Decrease of 0.5% 14,228,460 15,019,259
Expected future salary increases (on pension plan)
Increase of 0.5% 14,197,217 15,070,410
Decrease of 0.5% 13,341,712 14,122,277
The sensitivity analyses are based on the same actuarial method used to measure the obligations of the dened benet plans.
Consolidated nancial statements
Socnaf S.A.
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Impact of the dened benet pension plan on future cash ows
2022 2021
Estimated contributions for the next nancial year (in euros) 1,394,835 1,321,009
2021 2020
Weighted average duration of dened benet plan obligations (in years) 6.7 5.8
Pension scheme with dened benet obligations
2021 2020
EUR EUR
Accounted expense for the dened contribution pension plan 643,632 729,908
Note 22. Financial debts
2020
Restated
EUR < 1 year > 1 year TOTAL
Loans held by nancial institutions (*) 13,386,922 48,303,220 61,690,142
Lease liabilities 1,354,035 8,245,088 9,599,123
Other loans (**) 144,465,298 86,538,120 231,003,418
Short term bank loans 4,058,321 0 4,058,321
TOTAL 163,264,576 143,086,428 306,351,004
2021
EUR < 1 year > 1 year TOTAL
Loans held by nancial institutions (*) 13,112,838 42,290,430 55,403,268
Lease liabilities 1,105,090 8,285,305 9,390,395
Other loans (**) 15,446,018 192,389,051 207,835,069
Short term bank loans 7,029,326 0 7,029,326
TOTAL 36,693,272 242,964,786 279,658,058
(*) Okomu benets from preferential rate loans granted by tyo
state-owned naks. As per IAS 20 Grants, it is considered as a
grant and needs to be reclassidied. This reclassication leads
to a decrease of the loans out standing capital and to the
recognition of government grants, classied in accruals, for
EUR 8.1 million. These government grants will be considered
over the duration of each loan granted to Okumu. For other
comparison, 2020 nancial statements have been stated
accordingly, for an impact of EUR 8.0 million (reclassication
from loans t accruals).
(**) This balance includes an amount of EUR 196.5 million
payable to Socn S.A. (2020: EUR 126.5 million). See note 30.
Most of the consolidated borrowings are denominated
in Euros or CFA francs, whose parity is linked to
the Euro. The xed interest rates from nancial
institutions and which are pegged to the Euro vary
between 4.80% and 6.00%.
As explained in Note 33, interest rate management is
the subject of ongoing management attention.
The groupe is in compliance with covenants related to
amounts owned to credit instituion.
Consolidated nancial statements
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* Analysis of Long-term debt by interest rate
2020
Restated
EUR Fixed Rate Rate Floating rate Rate TOTAL
Loans held by nancial institutions
Ivory Coast 11,302,096 5.50% to 6.50% 0 - 11,302,096
Nigeria 15,147,320 5.00% to 10.00% 0 - 15,147,320
Liberia 2,680,222 7.60% 0 - 2,680,222
Cameroon 7,451,008 5.75% to 6.80% 0 - 7,451,008
Ghana 11,374,997 4.00% 0 - 11,374,997
Sao Tomé 347,577 8.00% 0 - 347,577
48,303,220 0 48,303,220
Other loans
Europe 80,000,000 4.80% 0 - 80,000,000
Sierra Leone 5,521,791 3.00% 0 - 5,521,791
Cameroon 1,016,329 6.00% 0 - 1,016,329
86,538,120 0 86,538,120
TOTAL 134,841,340 0 134,841,340
2021
EUR Fixed Rate Rate Floating rate Rate TOTAL
Loans held by nancial institutions
Ivory Coast 6,940,138 5.50% to 6.50% 0 - 6,940,138
Nigeria 18,203,287 5.00% to 10.00% 0 - 18,203,287
Liberia 2,462,387 7.60% 0 - 2,462,387
Cameroon 6,559,618 5.75% to 6.80% 0 - 6,559,618
Ghana 8,125,000 4.00% 0 - 8,125,000
42,290,430 0 42,290,430
Other loans
Europe 120,000,000 4.25% 66,463,935
3-month
LIBOR
+6.95%
(*)
186,463,935
Sierra Leone 5,925,116 3.00% 0 - 5,925,116
125,925,116 66,463,935 192,389,051
TOTAL 168,215,546 66,463,935 234,679,481
(*) The LIBOR should be replaced by SOFR rate prior to cessation on 3-month USD LIBOR.
Consolidated nancial statements
Socnaf S.A.
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* Long-term debt analysis by currency
2020
Restated EUR CFA NGN STN USD GHS CDF TOTAL EUR
Loans held by nancial institutions 11,374,997 18,753,103 15,147,320 347,577 2,680,223 0 0 48,303,220
Other loans 80,000,000 1,016,329 0 0 5,521,791 0 0 86,538,120
Lease liabilities 0 6,337,409 444,374 309,268 1,071,012 46,191 36,834 8,245,088
TOTAL
91,374,997 26,106,841 15,591,694 656,845 9,273,026 46,191 36,834 143,086,428
2021 EUR C FA NGN STN USD GHS CDF TOTAL EUR
Loans held by nancial
institutions
8,125,000 13,499,755 18,203,287 0 2,462,388 0 0 42,290,430
Other loans 186,463,936 2 0 0 5,925,114 0 0 192,389,052
Lease liabilities 0 6,332,507 271,450 289,187 1,306,092 47,996 38,071 8,285,303
TOTAL 194,588,936 19,832,264 18,474,737 289,187 9,693,594 47,996 38,071 242,964,785
* Long-term debt analysis by maturity
2020
Restated
EUR 2022 2023 2024 2025 2026 and above TOTAL
Loans held by nancial institutions 14,736,116 12,727,112 8,720,962 3,897,971 8,221,059 48,303,220
Lease liabilities 846,892 612,862 342,686 99,040 6,343,609 8,245,089
Other loans 1,016,327 20,000,000 20,000,000 20,000,000 25,521,792 86,538,119
TOTAL 16,599,335 33,339,974 29,063,648 23,997,011 40,086,460 143,086,428
2021
EUR 2023 2024 2025 2026 2027 and above TOTAL
Loans held by nancial institutions 16,450,747 10,138,166 5,394,772 3,669,989 6,636,756 42,290,430
Lease liabilities 879,920 527,871 152,648 105,521 6,619,345 8,285,305
Other loans 0 0 0 186,463,935 5,925,115 192,389,050
TOTAL 17,330,667 10,666,037 5,547,420 190,239,445 19,181,216 242,964,785
Consolidated nancial statements
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* Net debt
2021
2020
Restated
EUR EUR
Cash and cash equivalents 63,091,772 35,372,991
Long term debt net of current portion -234,679,480 -134,841,339
Short term debt and current portion of long-term debt -35,588,183 -161,910,541
Lease liabilities -9,390,396 -9,599,124
Net debt -216,566,287 -270,978,013
Cash and cash equivalents 63,091,772 35,372,991
Loan bearing interest at a xed rate -193,747,432 -296,751,881
Loan bearing interest at a variable rate -76,520,231 0
Lease liabilities -9,390,396 -9,599,124
Net debt -216,566,287 -270,978,013
* 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 39,056,804 -158,935,834 -76,067,913 -9,003,456 -204,950,399
Cash Flows -535,614 -7,420,943 8,634,200 1,622,569 2,300,212
Foreign exchange differences -3,148,200 6,504,652 433,950 320,523 4,110,925
Transfers 0 25,010,790 -94,910,780 0 -69,899,987
Other movements with no impact on cash ows 0 0 0 -2,538,758 -2,538,758
At 31
st
December 2020 (*) 35,372,990 -134,841,335 -161,910,543 -9,599,122 -270,978,010
Cash Flows 27,161,205 -22,418,673 52,262,491 1,595,201 58,600,224
Foreign exchange differences 557,575 -1,048,465 -90,876 -99,356 -681,122
Transfers 0 -76,371,003 74,150,742 0 -2,220,261
Other movements with no impact on cash ows 0 0 0 -1,287,115 -1,287,115
At 31
st
December 2021 63,091,770 -234,679,476 -35,588,186 -9,390,392 -216,566,284
(*) Restated
Consolidated nancial statements
Socnaf S.A.
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Note 23. Trade and other payables
2021
2020
Restated
EUR EUR
Trade creditors: suppliers 34,257,187 38,447,496
Advances received and invoices to be received 9,590,674 10,045,235
Staff cost liabilities 5,201,155 4,738,243
Other payables (*) 58,571,934 73,668,080
Accruals (**) 12,504,635 14,254,443
Balance at 31
st
December 120,125,585 141,153,497
Non-current liabilities 7,401,156 7,685,924
Current liabilities 112,724,429 133,467,573
(*) Other payables consist mainly of shareholder loans amounting to EUR 40.4 million (EUR 40.4 million in 2020) as well as debt
of EUR 2.2 million (EUR 17.3 million in 2020) relating to the cash pooling at the level of Socnaf. See also Note 30.
(**) In 2021, Okomu loans have been restated to present the effect of the grant provided by Nigerian State-owned banks. This
restatement led to a decrease of the loans outstanding capital and to the recognition of government grants, classied in
accruals. See note 22 for more information.
Consolidated nancial statements
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Note 24. 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 91,900 0 91,900 0 0
Long-term advances 1,093,041 0 323,549 1,416,590 1,093,041 323,549
Other non-current assets 0 0 1,661,752 1,661,752 0 1,661,752
Trade receivables 0 0 27,031,366 27,031,366 0 27,031,366
Other receivables 0 0 13,619,891 13,619,891 0 13,619,891
Cash and cash equivalents 0 0 35,372,991 35,372,991 0 35,372,991
Total assets 1,093,041 91,900 78,009,549 79,194,490 1,093,041 78,009,549
Liabilities
Long-term debts (**) 134,841,339 0 0 134,841,339 134,843,612 0
Long-term debts related to leases 8,245,089 0 0 8,245,089 8,245,089 0
Other non-current liabilities 0 0 7,685,924 7,685,924 0 7,685,924
Short-term debts (**) 17,445,243 0 144,465,298 161,910,541 17,445,243 144,465,298
Short-term debts related to leases 1,354,035 0 0 1,354,035 1,354,035 0
Trade payables (current) 0 0 48,492,731 48,492,731 0 48,492,731
Other payables (current) (**) 0 0 84,974,842 84,974,842 0 84,974,842
Total liabilities 161,885,706 0 285,618,795 447,504,501 161,887,979 285,618,795
(*) For information purposes.
(**) See note 22.
2020
Restated
Fair Value
EUR Level 1 Level 2 Level 3 TOTAL
Financial assets at fair value through other
comprehensive income
0 0 91,900 91,900
Consolidated nancial statements
Socnaf S.A.
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2021
Loans and
borrowings
Financial
assets at
fair value
through
other com-
prehensive
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 38 0 38 0 0
Long-term advances 1,390,426 0 355,294 1,745,720 1,390,426 355,294
Other non-current assets 0 0 1,743,808 1,743,808 0 1,743,808
Trade receivables 0 0 28,185,332 28,185,332 0 28,185,332
Other receivables 0 0 8,995,522 8,995,522 0 8,995,522
Cash and cash equivalents 0 0 63,091,772 63,091,772 0 63,091,772
Total assets 1,390,426 38 102,371,728 103,762,192 1,390,426 102,371,728
Liabilities
Long-term debts (**) 234,679,480 0 0 234,679,480 234,682,961 0
Long-term lease liabilities 8,285,305 0 0 8,285,305 8,285,305 0
Other non-current liabilities 0 0 7,401,156 7,401,156 0 7,401,156
Long-term debts (**) 28,558,856 0 7,029,327 35,588,183 28,558,856 7,029,327
Long-term lease liabilities 1,105,090 0 0 1,105,090 1,105,090 0
Trade payables (current) 0 0 43,847,861 43,847,861 0 43,847,861
Other payables (current) (**) 0 0 68,876,568 68,876,568 0 68,876,568
Total liabilities 272,628,731 0 127,154,912 399,783,643 272,632,212 127,154,912
(*) For information purposes.
(**) See note 22.
2021 Fair Value
EUR Level 1 Level 2 Level 3 TOTAL
Financial assets at fair value through other
comprehensive income
0 0 38 38
The management is in the opinion that the carrying value of the loans approximate the fair value.
Consolidated nancial statements
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Note 25. Staff costs and average number of staff
2021 2020
Staff costs EUR EUR
Remuneration 62,844,015 61,365,306
Social security and pension expenses 7,042,368 7,225,673
TOTAL 69,886,383 68,590,979
Average number of employees in the year 2021 2020
Directors 107 105
Employees 3,870 3,826
Workers (including temporary workers) 20,619 19,360
TOTAL 24,596 23,291
Note 26. Other nancial income
2021 2020
EUR EUR
On current assets / liabilities 6,324,778 2,960,823
Interest from receivables and cash 257,883 101,110
Exchange gains 3,681,686 2,678,112
Others
2,385,209 181,601
TOTAL 6,324,778 2,960,823
Note 27. Financial expenses
2021 2020
EUR EUR
Interest and nance expense 13,986,514 15,932,295
Interest expense on lease liabilities 954,891 952,679
Exchange losses 6,859,672 9,628,886
Others
562,031 1,192,623
TOTAL 22,363,108 27,706,483
Consolidated nancial statements
Socnaf S.A.
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Note 28. Net earnings per share
Undiluted net earnings per share (basic) is the prot
for the year attributable to ordinary shareholders
divided 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.
2021 2020
Net prot for the year (in euros) 72,028,965 -3,879,769
Average number of shares 17,836,650 17,836,650
Net earnings per share undiluted (in euros) 4.04 -0.22
Note 29. Dividends and directors’ fees
The Board will propose to the Annual General Meeting of 31
st
May 2022 not to pay any dividend.
2021 2020
Dividend and interim dividend distributed during the period 0 0
Number of shares 17,836,650 17,836,650
Dividend per share distributed during the year 0 0
Consolidated nancial statements
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Note 30. Information on related party
* Directors’ remuneration
2021 2020
EUR EUR
Short term benets 863,648 890,630
* Other related party transactions
2020
EUR Parent Associates
Other related
parties TOTAL
Non-current assets
Long-term advances 0 590,000 0 590,000
0 590,000 0 590,000
Current assets
Trade receivables 0 11,591,055 4,975 11,596,030
Other receivables 0 2,145,213 5,636 2,150,849
0 13,736,268 10,611 13,746,879
Non-current liabilities
Financial debts 90,000,000 5,521,787 80,000,000 175,521,787
90,000,000 5,521,787 80,000,000 175,521,787
Current liabilities
Financial debts 36,482,801 0 806,575 37,289,376
Trade payables 0 18,204,450 0 18,204,450
Other payables 0 22,098,034 40,403,942 62,501,976
36,482,801 40,302,484 41,210,517 117,995,802
Transactions between related parties
Services and goods delivered 0 157,982,096 0 157,982,096
Services and goods received 0 32,706,077 0 32,706,077
Financial income 0 2,520 0 2,520
Financial expenses 5,825,712 362,645 4,808,767 10,997,124
Consolidated nancial statements
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2021
EUR Parent Associates
Other related
parties TOTAL
Non-current assets
Long-term advances 0 590,000 0 590,000
0 590,000 0 590,000
Current assets
Trade receivables 0 21,424,833 6,598 21,431,431
Other receivables 0 2,233,336 5,636 2,238,972
0 23,658,169 12,234 23,670,403
Non-current liabilities
Financial debts 186,463,934 5,925,115 0 192,389,049
186,463,934 5,925,115 0 192,389,049
Current liabilities
Financial debts 10,056,296 15,780 0 10,072,076
Trade payables 0 13,718,264 39,713 13,757,977
Other payables 0 7,310,533 40,404,934 47,715,467
10,056,296 21,044,577 40,444,647 71,545,519
Transaction between related parties
Services and goods delivered 0 210,672,282 0 210,672,282
Services and goods received 0 33,154,829 116,812 33,271,641
Financial income 0 -57,869 0 -57,869
Financial expenses 6,327,238 219,006 4,344,109 10,890,353
Related party transactions are made on commercial
terms.
Transactions relating to other related parties
are carried out with Bolloré Participations and
Palmboomen Cultuur Maatschappij (Mopoli).
Mopoli is a Dutch company which is majority owned by
Financière Privée Holding and Aco, which also owns
Socn.
Bolloré Participations is a shareholder and director of
Socnaf.
In 2014, Socnaf obtained a cash advance of
EUR 35 million from Mopoli. This advance bears an annual
interest (net of tax) of 4%. Interest is payable in arrears
at the end of each calendar quarter. The amount of
interest recognised for the year 2021 is EUR 0.8 million.
At 31
st
December 2021, the outstanding balance
amounts to EUR 20.2 million, without maturity date.
In 2016, Socnaf obtained a loan of EUR 20 million
from Bolloré Participations. The loan has an
annual interest rate of 4%. The amount of interest
recognised for the year 2021 is EUR 0.8 million. At
31
st
December 2021, the outstanding balance amounts
to EUR 20.2 million and is repayable on June 2023.
Socnaf did not pay any dividend in 2021 to its
parent company Socn (2020: nil). Socnaf has
borrowed two amounts from Socn, for respectively
EUR 120.0 million and USD 74.8 million (2020:
EUR 126.4 million). Annual interests at rates of
respectively 4.25% and 3-month USD LIBOR +6.95% are
payable on these loans. As such, Socnaf has paid an
interest of EUR 6.3 million in 2021 compared to EUR
5.8 million in 2020.
Consolidated nancial statements
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Note 31. Off balance sheet commitments
In 2019, a subsidiary of Socnaf, Okomu Palm Oil
Company obtained a loan of Naira 10 billion, which
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 14 million. (2020:
EUR 13 million).
In 2019, a subsidiary of Socnaf, Agripalma entered
into a credit agreement of Dobra 49 million (EUR 2
million), which contract stipulates that Agripalma will
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
EUR 0.5 million (2020: EUR 1.8 million).
In 2019, a subsidiary of Socnaf, Plantations Socnaf
Ghana (PSG), obtained a loan of EUR 16.5 million for
the 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
pledges the oil mill as mortgage guarantee, up to the
amount of 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 overdraft to nil (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.
Consolidated nancial statements
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Note 32. 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 and Congo (DRC).
Products from the Ivory Coast, Ghana, Nigeria and
Cameroon operating sectors come from the palm oil
and rubber sales, those from the Liberia sector are
only from the rubber sales, those from Sierra Leone,
Ghana, São Tomé and Principe and Congo (DRC) come
solely from the palm oil sales. 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. The segment result of the Group is the prot
from operations.
The stated gures originate from internal 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.
* 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 0 0 -3,350,897
Sierra Leone 15,103,389 0 86,071
Liberia 29,475,396 0 -1,903,422
Ivory Coast 141,938,986 69,616 22,172,685
Ghana 12,791,521 0 497,660
Nigeria 57,308,888 0 20,899,568
Cameroon 130,068,460 0 27,179,267
São Tomé and Principe 3,828,024 0 -1,968,995
Congo (DRC) 12,050,148 0 -125,900
TOTAL 402,564,812 69,616 63,486,035
Elimination of revenue from intra-group activities -69,616
Depreciation, amortisation and impairment of bearer plants -3,642,721
Fair value of agricultural production -3,163,007
Other IFRS adjustments 2,195,000
Consolidation adjustments (intra-group and others) -2,959,276
Financial income 3,097,028
Financial expenses -28,384,154
Group share of income from associates 1,259,361
Income tax expense -18,689,671
Net prot for the period 13,128,979
(*) Prot / (loss) for the period include operating expenses.
Consolidated nancial statements
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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 0 0 -3,136,523
Sierra Leone 46,760,015 0 19,240,229
Liberia 36,783,462 0 5,538,511
Ivory Coast 176,301,157 69,873 37,488,425
Ghana 26,377,673 0 13,096,295
Nigeria 79,363,158 0 34,174,303
Cameroon 143,222,868 0 33,644,277
São Tomé and Principe 4,776,845 0 -1,691,862
Congo (DRC) 13,117,259 0 -2,058,986
TOTAL 526,702,438 69,873 136,294,671
Elimination of revenue from intra-group activities -69,873
Depreciation, amortisation and impairment of bearer plants -391,200
Fair value of agricultural production 8,260,872
Other IFRS adjustments 437,779
Consolidation adjustments (intra-group and others) -1,653,346
Financial income 7,128,210
Financial expenses -25,967,364
Group share of income from associates 7,264,010
Income tax expense -29,575,746
Net prot for the period 101,728,012
(*) Prot / (loss) for the period include operating expenses.
Consolidated nancial statements
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* Total segmental assets at 31
st
December 2021
2021
2020
Restated
EUR EUR
Europe 10,019,752 1,289,439
Sierra Leone 132,030,565 123,527,792
Liberia 115,585,545 102,262,017
Ivory Coast 170,140,614 154,069,517
Ghana 78,724,410 72,516,209
Nigeria 139,257,028 116,371,568
Cameroon 175,101,980 181,476,836
São Tomé and Principe 27,822,826 28,473,479
Congo (DRC) 68,664,450 52,212,692
Total at 31
st
December 917,347,171 832,199,549
IFRS 3 / IAS 16: Bearer plants -23,504,111 -20,031,118
IAS 2 / IAS 41: Agricultural production 6,128,867 206,021
Other IFRS adjustments -5,870,896 -5,855,220
Consolidation adjustments (intra-group and others) -70,015,375 -48,682,927
Total consolidated segmental assets 824,085,657 757,836,305
Consolidated assets not included in segment assets
Right-of-use assets 7,484,998 7,796,257
Investments in associates 23,619,982 21,864,378
Financial assets at fair value through other comprehensive income 38 91,900
Long term debt 1,745,720 1,702,070
Deferred tax 9,421,068 8,639,695
Other non-current assets 1,743,807 1,661,751
Consolidated non-current assets 44,015,612 41,756,050
Other debtors 8,995,522 13,619,891
Current tax assets 13,378,526 12,802,007
Consolidated current assets 22,374,048 26,421,898
Total of consolidated assets in the segmental assets 66,389,660 68,177,948
Total assets 890,475,316 826,014,253
Segment assets are not part of internal reporting, they
are included to meet the requirements of IFRS 8. They
are derived from internal reporting and do not take
into account any consolidation or IFRS restatements.
The segmental assets include xed assets, biological
assets, trade receivables, inventories, cash and cash
equivalents. The segmental liabilities include trade
payables and other payables.
Consolidated nancial statements
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* Total segmental liabilities
2021
2020
Restated
EUR EUR
Europe 42,790,016 57,949,838
Sierra Leone 1,538,755 6,196,389
Liberia 15,247,453 14,540,667
Ivory Coast 17,484,516 16,466,700
Ghana 972,502 912,474
Nigeria 9,223,850 9,559,987
Cameroon 25,172,132 23,304,990
São Tomé and Principe 3,468,418 2,382,718
Congo (DRC) 3,650,948 2,689,124
Total at 31st December 119,548,589 134,002,887
Other IFRS adjustments 48,895 -52,271
Consolidation adjustments (intra-group and others) -6,873,055 -8,881,065
Total consolidated segmental liabilities 112,724,429 125,069,551
Consolidated liabilities not included in segment liabilities
Total equity 436,481,961 334,036,663
Non-current liabilities 273,829,367 182,079,295
Current nancial debts 35,588,183 161,970,563
Current lease liabilities 1,105,090 1,354,035
Current tax liabilities 30,408,824 20,857,243
Provisions 337,462 646,902
Total consolidated liabilities not included in segment liabilities 777,750,887 700,944,701
Total equity and liabilities 890,475,316 826,014,253
Consolidated nancial statements
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* Costs incurred for acquisition of segmental assets during 2020 (Restated)
EUR Intangible assets Tangible assets Biological assets TOTAL
Sierra Leone 0 7,668,558 210,174 7,878,732
Liberia 0 1,113,036 4,261,794 5,374,830
Ivory Coast 2,561 6,513,437 2,746,614 9,262,612
Ghana 0 515,524 521,316 1,036,840
Nigeria 0 17,153,521 5,046,892 22,200,413
Cameroon 134,582 12,066,579 2,935,090 15,136,251
São Tomé et Principe 0 68,175 0 68,175
Congo (DRC) 0 1,222,201 1 1,222,202
TOTAL 137,143 46,321,031 15,721,881 62,180,055
* Costs incurred for acquisition of segmental assets during 2021
EUR Intangible assets Tangible assets Biological assets TOTAL
Sierra Leone 0 2,207,733 0 2,207,733
Liberia 0 1,613,464 3,808,942 5,422,406
Ivory Coast 3,666 6,125,172 4,144,678 10,273,516
Ghana 0 1,978,271 137,231 2,115,502
Nigeria 0 27,082,944 1,632,191 28,715,135
Cameroon 0 9,970,796 3,177,201 13,147,997
São Tomé et Principe 0 256,352 0 256,352
Congo (DRC) 0 781,126 0 781,126
TOTAL 3,666 50,015,858 12,900,242 62,919,767
* Information by category of revenue
Revenue from external customers
2021
2020
Restated
EUR EUR
Palm 327,502,389 241,510,084
Rubber 195,905,903 156,525,381
Other agricultural activities 657,341 678,970
Others 2,636,805 3,850,377
TOTAL 526,702,437 402,564,812
Consolidated nancial statements
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* Information by geographical region
Revenue from external customers by country and by geographical area
EUR
2020
Restated
Geographical
location
Origin Europe Ivory Coast Nigeria Cameroon Congo Sierra Leone
Other
African
countries
Rest of the
world TOTAL
Sierra Leone 377,308 0 0 0 0 13,051,964 1,313,141 360,979 15,103,392
Liberia 29,475,396 0 0 0 0 0 0 0 29,475,396
Ivory Coast 81,031,287 25,891,579 0 0 0 0 2,740,694 32,275,428 141,938,988
Ghana 0 0 0 0 0 0 12,791,521 0 12,791,521
Nigeria 0 0 57,308,887 0 0 0 0 0 57,308,887
Cameroon 5,910,149 0 0 123,889,238 0 0 269,073 0 130,068,460
São Tomé and
Principe
3,043,100 0 0 565,323 0 0 219,601 0 3,828,024
Congo (DRC) 0 0 0 0 12,050,145 0 0 0 12,050,145
TOTAL 119,837,241 25,891,579 57,308,887 124,454,561 12,050,148 13,051,964 17,334,030 32,636,406 402,564,812
EUR 2021
Geographical
location
Origin Europe Ivory Coast Nigeria Cameroon Congo Sierra Leone
Other
African
countries
Rest of the
world TOTAL
Sierra Leone 4,084,258 0 0 2,382,645 0 40,293,112 0 0 46,760,015
Liberia 36,783,462 0 0 0 0 0 0 0 36,783,462
Ivory Coast 114,868,414 32,387,669 11,377 33,785 3,023 51,792 1,480,759 27,464,339 176,301,157
Ghana 0 0 0 0 0 0 26,377,673 0 26,377,673
Nigeria 0 0 79,363,159 0 0 0 0 0 79,363,159
Cameroon 12,570,689 0 0 130,652,179 0 0 0 0 143,222,868
São Tomé and
Principe
4,341,409 0 0 287,851 0 0 147,585 0 4,776,845
Congo (DRC) 0 0 0 0 13,117,259 0 0 0 13,117,259
TOTAL 172,648,231 32,387,669 79,374,536 133,356,460 13,120,282 40,344,905 28,006,017 27,464,339 526,702,438
Consolidated nancial statements
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* Information by business segment and revenue category
Revenue from external customers by business segment and geographic area
EUR
2020
Restated
Category
Business
Segment Palm Rubber
Other agricultural
products TOTAL
Sierra Leone 14,445,401 0 657,988 15,103,389
Liberia 0 29,475,396 0 29,475,396
Ivory Coast 25,286,890 114,301,331 2,350,765 141,938,986
Ghana 12,701,391 0 90,130 12,791,521
Nigeria 50,010,800 7,119,465 178,623 57,308,888
Cameroon 123,187,430 5,629,189 1,251,841 130,068,460
São Tomé and Principe 3,828,024 0 0 3,828,024
Congo (DRC) 12,050,148 0 0 12,050,148
TOTAL 241,510,084 156,525,381 4,529,347 402,564,812
EUR 2021
Category
Business
Segment Palm Rubber
Other agricultural
products TOTAL
Sierra Leone 46,760,015 0 0 46,760,015
Liberia 0 36,783,462 0 36,783,462
Ivory Coast 36,369,827 137,737,562 2,193,768 176,301,157
Ghana 25,714,194 391,733 271,746 26,377,673
Nigeria 67,439,332 11,787,948 135,878 79,363,158
Cameroon 133,324,917 9,205,198 692,753 143,222,868
São Tomé and Principe 4,776,845 0 0 4,776,845
Congo (DRC) 13,117,259 0 0 13,117,259
TOTAL 327,502,389 195,905,903 3,294,145 526,702,438
Consolidated nancial statements
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Note 33. 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 regularly monitors its nancial ratios, in
particular the net debt to equity ratio.
Financial risk
The nancial risk for the companies within the Group
comes mainly from changes in the selling price of
agricultural commodities, foreign exchange and to a
lesser extent, interest rate movements.
Potential risks
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 Group regularly reviews its sources of nancing
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
event of a signicant drop in the selling prices of raw
materials and conversely to generate prot margins
during the market downturns.
In parallel with this main policy, secondary policies
have also been implemented to improve or consolidate
prot margins:
- production of agricultural products of superior
quality and branded, in particular for rubber and;
- 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 and Nigerian naira. 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 impact on the nancial
result denominated in euro.
Risk management and opportunities
Apart from the current currency hedging instruments
for operational transactions, which remain relatively
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.
* Interest rate risk
Potential risk
This risk includes a change in cash ows relating to
short-term borrowings (often on a variable rate) and
the relatively high level of base interest rates on cash
Consolidated nancial statements
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and cash equivalents and developing markets when
borrowing in local currency.
Risk management and opportunities
The rst risk is put under control by an active policy of
monitoring the evolution of local nancial markets and
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
dened by its Board of Directors.
Details on impairment of nancial assets and liabilities,
including measurement of expected credit losses, are
disclosed in note 1.18.
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
are both the main source of cash and nancing needs.
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
nancing are supervised by the Group management.
The Group chooses, whenever possible, to maintain
nancial liabilities and cash position (as mentioned
respectively in notes 22 and 18) with low credit risk
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
the Group’s protability.
The political system in some of the Group’s markets
remains relatively fragile and remains potentially
threatened by cross-border conicts or wars between
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.
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 its exposure to
this risk.
Consolidated nancial statements
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Credibility risk
Potential risk
The Group is exposed to the risk of loss of condence
of the nancial markets in relation to its ability to
maintain a sound nancial health considering:
- 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
from uctuations in exchange rates generated by
its 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 limited to
uctuations in dollar against the euro. The impact
on the result of a 5% increase or decrease (EUR/USD)
in foreign currency nancial instruments amounts to
EUR 0.6 million.
Where the currency from sale is not the functional
currency of the company and that currency is linked
to a strong currency, the conversion is ensured at the
time of the conclusion of the contract. Local turnover
in local currency in 2021 (including US dollars)
amounted to EUR 311.4 million. The global sales
(mainly concluded in US dollars) in 2021 amounted to
EUR 215.3 million.
* Interest rate risk
The breakdown of xed rate loans and variable rate
loans is described in Note 22. Following the variable
rate loan arrangement entered into by Socnaf in
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 amount to
EUR 20 million and EUR 8.2 million respectively.
Accounts receivable from global customers are mainly
receivables related to the sale of rubber. Palm oil is
sold locally to local players (wide range of customers).
The marketing of rubber is entrusted to Sogescol FR
(equity accounted company). It trades either on the
physical markets or directly with end customers.
Consolidated nancial statements
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2021 2020
EUR EUR
Trade receivables 30,060,830 28,809,811
Provision incurred mainly on non-operational receivables -1,875,498 -1,778,445
Other receivables 8,995,522 13,619,891
Total net receivables 37,180,854 40,651,257
Amount not due 36,392,777 40,241,499
Amount due less than 6 months 12,761 291,321
Amount due for more than 6 months and less than one year 755,648 106,543
Amount due for more than one year 19,668 11,894
Total net receivables 37,180,854 40,651,257
Note 34. Contingent liabilities
Société des Caoutchoucs du Grand Bereby (“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
EUR 277,000. Based on SOGB’s calculations, the amount
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
and Forestry Companies (“UNEMAF”) and the General
Confederation of Companies of Ivory Coast (“CGECI”),
to obtain a clear position from the CNPS on this issue.
The CNPS had always granted a tolerance concerning
the determination of benets in kind constituted by
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
Consolidated nancial statements
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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 35. Political and economic environment
The Company holds interests in subsidiaries operating in Africa.
Given the economic and political instability in some of the related African countries (Sierra Leone, Liberia, Ivory
Coast, Ghana, Nigeria, Cameroon, São Tomé and Principe and Congo DRC), these holdings pose a risk in terms of
exposure to political and economic changes.
Note 36. Events after the closing date
Russia – Ukrain conict
In February 2022, a number of countries (including
the US, UK and EU) imposed sanctions against certain
entities and individuals in Russia as a result of the
ofcial recognition of the Donetsk People Republic and
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
February 2022, there has been a signicant increase
in volatility on the securities and currency markets, as
well as a signicant depreciation of the ruble against
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
the evolving situation and its impact on the nancial
position and results of the company.
Note 37. Auditor’s fees
2021 2020
EUR EUR
Audit (VAT included)
683,798 378,402
The audit fees include all fees paid to the independent
statutory auditor of the Group namely EY as well as
those paid to member rms within EY network for the
relevant years. No consulting work or other non-audit
services have been performed by this rm in 2021 or
in 2020.
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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
at 31
st
December 2021.
Activities
Socnaf holds nancial interests in portfolio companies which operate directly or indirectly in tropical Africa in
the rubber and palm oil sectors.
Result for the period
The prot and loss account for the year, compared to that of the previous year, is as follows:
(million EUR)
2021 2020
INCOME
Value adjustments in respect of nancial assets 3.0 0.0
Income from equity investments
Dividends received 32.9 22.6
Capital gain on disposal of nancial xed assets 0.7 0.0
Other interest receivable and similar income 3.4 2.1
Total income 40.0 24.7
EXPENSES
Impairment:
On nancial assets 12.0 35.0
On current assets 0.0 0.7
Other external expenses 3.3 3.4
Interest payable and similar expenses 14.2 11.5
Income tax 4.0 2.7
Total expenses 33.5 53.3
PROFIT FOR THE FINANCIAL YEAR 6.5 -28.6
Company’s Management report
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Revenue from nancial assets
(EUR million)
2021 2020
Dividends
Socapalm 18.0 11.6
Ben 4.6 4.1
Sogescol FR 1.9 3.2
Okomu 6.4 2.9
Safa 0.6 0.6
Socnco FR 1.0 0.0
Autres 0.4 0.2
Total of dividends 32.9 22.6
Interest on receivables amounted to EUR 2.1 million
and foreign exchange gains to EUR 1.3 million. In
addition, following the liquidation of Gaummes and
Socn Research, reversals of value adjustments for
a total amount of EUR 3 million were recorded, as
well as a liquidation bonus of Socn Green Energy of
EUR 0.7 million.
The prot for the year amounted to EUR 6.5 million
euros compared to a loss of EUR 28.6 million at
31
st
December, 2020. This last result was impacted by
non-recurring impairments on investments.
Balance sheet
At 31
st
December 2021, Socnaf’s total assets
amounted to EUR 500 million compared to
EUR 518.1 million as at 31
st
December 2020.
Socnaf’s assets mainly consist of nancial xed assets
of EUR 199.5 million, long term loan receivables
of EUR 269.6 million, amounts owed by afliated
undertaking and other receivables for EUR 20.7 million,
and cash and equivalent EUR 10 million.
Equity amounted to EUR 258.8 million before
appropriation of results.
Portfolio
Movements
During the year, the liquidations of Gaummes, Socn
Green Energy and Socn Research were completed.
Impairment loss on STP Invest was recorded for an
amount of EUR 3 million.
Valuation
The investments are estimated at a total value of
EUR 503.1 million and includes an unrealised gain of
EUR 303.5 million compared to their acquisition costs,
potentially adjusted.
Company’s Management report
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Investments
The main direct and indirect investments have evolved during the last months as follows:
PROJECTS IN OPERATION AT 31
ST
DECEMBER 2021
(EUR million)
AFRICA
TOTAL
AFRICA
Sierra Leone
Liberia Ivory Coast Ghana Nigeria Cameroon Sao Tomé DRC
SAC LAC & SRC SOGB SCC PSG OKOMU SOCAPALM SAFACAM AGRIPALMA BRABANTA
TURNOVER
Realised 2020 14,994 29,310 99,304 40,284 13,725 65,222 108,245 25,490 3,828 11,923 412,326
Realised 2021 46,769 36,789 124,400 49,439 26,305 79,148 114,731 32,801 4,777 13,111 528,271
Forecasts 2021 22,092 31,501 93,160 40,533 13,535 62,181 109,176 28,288 6,205 11,815 418,486
NET RESULT
Realised 2020 -1,105 -3,764 11,666 4,379 -3,482 17,891 17,624 1,037 -2,175 -346 41,725
Realised 2021 16,395 3,659 22,453 5,340 11,248 29,725 20,952 3,778 -1,938 -2,201 109,412
Forecasts 2021 -719 -1,882 7,477 2,470 540 15,600 17,473 2.230 -543 406 43,052
PALM PRODUCT
SURFACE
AREA (HA)
Mature 12,349 - 7,471 - 6,140 19,060 29,943 5,251 2,100 6,072 88,386
Immature - - - - - - 2,541 76 - - 2,617
Total 12,349 - 7,471 - 6,140 19,060 32,484 5,327 2,100 6,072 91,003
PRODUCTION
FFB
Realised 2020 144,455 - 154,427 - 70,754 214,281 490,591 72,182 22,640 81,630 1,250,960
Realised 2021 222,488 - 163,663 - 103,054 222,035 491,049 77,275 23,928 62,766 1,366,258
Forecasts 2021 150,338 - 152,409 - 88,893 270,081 474,744 76,308 31,500 87,841 1,332,114
CRUDE
PRODUCTION
Realised 2020 30,748 - 36,228 - 18,892 45,445 145,898 16,539 5,097 20,438 319,284
Realised 2021 52,307 - 38,935 - 27,538 46,480 152,323 16,948 5,636 15,993 356,161
Forecasts 2021 34,578 - 35,597 - 22,223 56,447 146,122 17,264 7,245 20,255 339,730
EXTRACTION
RATE
Realised 2020 22.77 - 22.44 - 26.70 21.28 22.03 22.77 22.42 24.48 22.51
Realised 2021 23.51 - 22.74 - 26.72 20.82 22.02 21.67 23.56 24.32 22.62
Forecasts 2021 23.00 - 22.50 - 25.00 20.90 22.21 22.50 23.00 22.80 22.33
Company’s Management report
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TURNOVER
Realised 2020 14.994 - 25.287 - 13.725 57.094 107.939 19.861 3.828 11.923 254.651
Realised 2021 46.769 - 36.370 - 25.914 67.450 112.425 23.596 4.777 13.111 330.411
Forecasts 2021 22.092 - 22.195 - 13.319 51.391 107.172 19.862 6.205 11.815 254.052
RUBBER
SURFACE
AREA (HA)
Mature - 13.825 11.413 - 386 5.649 2.079 3.317 - - 36.668
Immature - 3.331 4.752 - 556 1.686 - 1.108 - - 11.433
Total - 17.156 16.165 - 942 7.335 2.079 4.425 - - 48.101
PRODUCTION
Realised 2020 - 28.363 67.594 35.882 - 7.341 - 5.276 - - 144.456
Realised 2021 - 26.872 67.727 39.273 - 9.285 - 6.919 - - 150.076
Forecasts 2021 - 29.532 66.500 38.000 - 8.925 - 7.899 - - 150.856
TURNOVER
Realised 2020 - 29.310 74.017 40.288 - 8.128 - 5.629 - - 157.372
Realised 2021 - 36.789 88.031 49.439 392 11.698 - 9.205 - - 195.554
Forecasts 2021 - 31.501 70.965 40.533 216 10.790 - 8.426 - - 162.431
The production data correspond to the quantities in tons of
Milled Rubber and Crude Palm Oil. This table does not include
rened oil production data (SPFS). Rubber production and sales
are presented after elimination of intercompany transactions.
Consolidated gures may however differ.
Allocation of prot
The prot for the year of EUR 6,499,115.32 increased by retained
earnings of EUR 124,914,492.68, give total retained earnings of
EUR 131,413,608.00 which it is proposed to carry forward again.
After this allocation, the total reserves will amount to
EUR 135,669,284.92 and is detailed as follows:
Reserves EUR
Legal reserve 3,567,330.00
Other reserves 628,717.42
Available reserve 59,629.50
Retained earnings 131,413,608.00
135,669,284.92
Treasury shares
The Company did not buy back its own shares during the 2021 nancial year.
Research and development
During the nancial year 2021, Socnaf S.A. did not incur any expenses for research and development.
Company’s Management report
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Financial instruments
During the nancial year 2021, the Company did not make use of any nancial instruments.
Financial risk management policies are described in the notes to the Company’s consolidated nancial statements.
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 May 2006
concerning Public Takeover Bids
a) b) f) The subscribed share capital of the Company
is set at EUR 35,673,300 represented by
17,836,650 shares without par value, fully
paid up. Each share entitles the holder to
one vote without limitation or restriction.
c) On 1
st
February 2017, Socn declared that it
holds a 58.85% direct stake in Socnaf.
On 3
rd
September 2014, Compagnie du Cambodge
declared that it holds a direct and indirect stake
of 9% in the capital of Socnaf SA. 7.07% is held
by Compagnie du Cambodge, 1.08% by Société
Industrielle et Financière de l’Artois, 0.49% by
Bolloré SA and 0.36% by Compagnie des Glénans.
h) Art. 13. 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. of the Articles: “In the event of the
death or resignation of a Director, he may be
provisionally replaced by observing in this
respect the formalities provided for by law. In
this case the General Meeting at its rst meeting
shall proceed to the nal election.”
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 450-3 and 450-8 of the law of 10
th
August 1915 on the commercial companies, as
amended.”
i) The powers of the members of the Board of
Directors are dened in Art. 17 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
of Incorporation or the law fall within the
competence of the Board.”
In addition, the Articles provide in Art. 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.
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.
Company’s Management report
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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.”
The other points of Art. 11 (1) are not applicable,
namely:
• title holding including special control rights;
• the existence of a staff shareholding system;
• shareholder agreements that may result in
restrictions on the transfer of securities or voting
rights;
• the agreements to which the Company is party,
and which take effect are modied or terminated
in the event of a change of control of the Company
following a takeover bid;
• 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
March, 2022, the Group approved the update
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
dened and implemented throughout 2021.
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
(“Sustainable Development Report”).
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)
The estimated value of Socnaf SA as at 31
st
December
2021 before allocation of the result for the nancial
year amounts to EUR 562.3 million, being EUR 31.53
per share compared to EUR 27.89 in the previous
nancial year. This valuation incorporates the
unrealised capital gains of the portfolio.
As a reminder, the market share price was EUR 12.00
at the end of 2021 against EUR 11.10 a year earlier.
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Company’s Management report
Signicant events after the reporting date
As of 25
th
February 2022, Socnaf prepaid an amount
of USD 25,000,000 i.e. EUR 22,409,466 of its debt to
Socn.
In February 2022, a number of countries (including
the US, UK and EU) imposed sanctions against certain
entities and individuals in Russia as a result of the
ofcial recognition of the Donetsk People Republic and
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
February 2022, there has been a signicant increase
in volatility on the securities and currency markets, as
well as a signicant depreciation of the ruble against
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 and its impact on the nancial
position and results of the company.
Main risks and uncertainties
It must be emphasized that the Group’s investments in
Africa may be subject to political and economic risks.
On-site executives and managers follow the day-to-
day evolution of the situation.
In addition, the Company may be exposed to foreign
exchange risks on long-term advances to subsidiaries.
The assessment of this risk is described in the notes to
the Company’s statutory nancial statements.
Impact of the Covid-19 crisis
The nancial forecasts of the Company and its direct
and indirect subsidiaries for the years 2022 and 2023,
the sustained levels of market prices in this rst part
of the year, indicate that the business will generate
sufcient cash to meet the Group’s obligations and
ensure the prospect of continued operation.
Perspectives
The result for the 2022 nancial year will depend to a large extent on the dividend distributions of the
subsidiaries; these are not yet xed.
Statutory appointments
The term served as director by Mr. Hubert Fabri
expires this year. It will be proposed at the next
Annual General Meeting to renew this mandate for six
years until the Annual General Meeting of 2028.
On the other hand, the Board of Directors takes note
of the resignation of Mr. Philippe de Traux, Fulgence
Koffy and Luc Boedt from their mandate as Director.
It will not be proposed to the General Meeting to
provide for their replacement.
The Board of Directors
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Audit report on the Company’s nancial statements
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
To the Shareholders of
Socnaf S.A
4, avenue Guillaume
L-1650 Luxembourg
Opinion
We have audited the nancial statements of Socnaf
S.A. (the “Company”), which comprise the balance
sheet as at 31 December 2021, and the prot and
loss account for the year then ended, and the notes
to the nancial statements, including a summary of
signicant accounting policies.
In our opinion, the accompanying nancial statements
give a true and fair view of the nancial position of the
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
nancial statements.
Basis for opinion
We conducted our audit in accordance with EU
Regulation N° 537/2014, the Law of 23 July 2016
on the audit profession (the “Law of 23 July 2016”)
and with International Standards on Auditing (“ISAs”)
as adopted 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 “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
Ethics for Professional Accountants (“IESBA Code”) as
adopted for Luxembourg by the CSSF together with
the ethical requirements that are relevant to our
audit of the nancial statements, and have fullled
our other ethical responsibilities under those ethical
requirements. We believe that the audit evidence we
have obtained is sufcient and appropriate to provide
a basis for our opinion.
we considered this area to be a key audit matter.
Due to the size of the balance and judgement included,
shareholders).
forecast
elements
(discounted
future
cash
ows
to
or
historical
elements
(adjusted
net
equity)
and/or
market elements (shares price when applicable) and/
to
the
shares
in
afliated
undertakings,
whether
choice
of
the
elements
to
be
considered
according
exercise
of
the
Board
of
Directors’
judgement
in
its
of these shares in afliated undertakings requires the
The assessment of the durable depreciation in value
made have ceased to apply.
the
reasons
for
which
the
value
adjustments
were
date.
These
value
adjustments
are
not
continued
if
gure to be attributed to them at the balance sheet
xed
assets,
so
that
they
are
valued
at
the
lower
value
adjustments
are
made
in
respect
of
nancial
according
to
the
opinion
of
the
Board
of
Directors,
expenses. In the case of durable depreciation in value
historical
acquisition
cost
which
includes
incidental
sheet. Shares in afliated undertakings are valued at
represents
40%
of
the
total
assets
of
the
balance
undertakings
amounts
to
200
million
euros
and
As
at
31
December
2021,
the
shares
in
afliated
Risk identied
Valuation of shares in afliated undertakings
provide a separate opinion on these matters.
and
in
forming
our
opinion
thereon,
and
we
do
not
of
the
audit
of
the
nancial
statements
as
a
whole,
period. These matters were addressed in the context
our
audit
of
the
nancial
statements
of
the
current
professional
judgment,
were
of
most
signicance
in
Key
audit
matters
are
those
matters
that,
in
our
Key audit matters
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Our answer
Our audit procedures over the impairment of the shares
in afliated undertakings included amongst other :
• 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
afliated undertakings ;
• Ensuring that the accounting policies used by the
Board of Directors were properly applied:
- 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
markets quotations ;
- when the Board of Directors relied on historical
data, we reconciled the adjusted net equity
used in the valuation of the shares in afliated
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
made in the Note 3 of the nancial statements.
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.
Our opinion on the nancial statements does not cover
the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the nancial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the 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 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
presenting the nancial statements in compliance with
the requirements set out in the Delegated Regulation
2019/815 on European Single Electronic Format, as
amended (“ESEF Regulation”).
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, the Law of 23 July 2016 and with 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 the
basis of these nancial statements.
Audit report on the Company’s nancial statements
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Audit report on the Company’s nancial statements
As part of an audit in accordance with EU Regulation
N° 537/2014, the Law of 23 July 2016 and with ISAs
as adopted for Luxembourg by the CSSF, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the nancial statements, 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
the nancial statements 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 “réviseur d’entreprises
agréé”. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and
content of the nancial statements, including the
disclosures, and whether the nancial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
• Assess whether the nancial statements have been
prepared, in all material respects, in compliance
with the requirements laid down in the ESEF
Regulation.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and signicant audit ndings,
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 nancial
statements of the current period 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” by the General Meeting of the Shareholders on
26 May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments, is 2 years.
The management report is consistent with the nancial
statements and has been prepared in accordance with
applicable legal requirements.
The accompanying corporate governance statement
on pages 32 to 37 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 nancial statements and has been prepared
in accordance with applicable legal requirements.
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Audit report on the Company’s nancial statements
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. For the Company, it relates to :
• Financial statements prepared in valid xHTML
format
In our opinion, the nancial statements of the Company
as at 31 December 2021, identied as 2021 Socnaf
Annual Report, have been prepared, in all material
respects, in compliance with the requirements laid
down in the ESEF Regulation.
We conrm that the audit opinion is consistent with
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, 29
th
April 2022
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1. Balance sheet at 31
st
December 2021
2021 2020
A S S E T S
Note EUR EUR
FIXED ASSETS
Financial assets 3
Shares in afliated undertakings 199,522,760.65 204,471,182.44
Loans to afliated undertakings 269,552,427.50 308,818,543.42
469,075,188.15 513,289,725.86
CURRENT ASSETS
Debtors
Amounts owed by afliated undertakings
becoming due and payable within one year
17,607,793.72 1,642,810.47
Other debtors
becoming due and payable after one year 1 0.00 1,260,052.43
becoming due and payable within one year 1 2,333,506.60 484,160.00
19,941,300.32 3,387,022.90
Investments
Shares in afliated undertakings 248,406.09 248,406.09
Cash at bank and in hand 9,960,182.80 1,192,846.04
TOTAL ASSETS 499,225,077.36 518,118,000.89
The accompanying notes form an integral part of the annual accounts.
Company nancial statements
Company nancial statements
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2021 2020
CAPITAL, RESERVES AND LIABILITIES Note EUR EUR
CAPITAL AND RESERVES 4
Subscribed capital 35,673,300.00 35,673,300.00
Share premium account 87,453,866.21 87,453,866.21
Reserves
Legal reserve 3,567,330.00 3,567,330.00
Other reserves, including the fair value reserve
Other available reserves 688,346.92 688,346.92
4,255,676.92 4,255,676.92
Prot brought forward 124,914,492.68 153,563,826.44
Prot for the nancial year 6,499,115.32 -28,649,333.76
258,796,451.13 252,297,335.81
CREDITORS
Amounts owed to credit institutions
becoming due and payable within one year 41.50 33.70
Trade creditors
becoming due and payable within one year 110,860.00 98,280.00
Amounts owed to afliated undertakings 5
becoming due and payable after more than one year 186,463,934.52 80,000,000.00
becoming due and payable within one year 12,317,062.61 144,632,022.78
Amounts owed to undertakings with which the undertaking is
linked by virtue of participating interests
6
becoming due and payable after more than one year 20,201,643.84 0.00
becoming due and payable within one year 20,201,644.00 40,402,185.84
Other creditors
Tax authorities 1,125,420.00 600,395.00
Other creditors
becoming due and payable within one year 8,019.76 87,747.76
240,428,626.23 265,820,665.08
TOTAL CAPITAL, RESERVES AND LIABILITIES 499,225,077.36 518,118,000.89
The accompanying notes form an integral part of the annual accounts.
Company nancial statements
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2. Income statement for the year ended 31
st
December 2021
2021 2020
Note EUR EUR
Raw materials and consumables and others external expenses
Other external expenses -2,553,559.66 -2,768,190.30
Value adjustments
in respect of current assets -12,463.34 -739,054.17
Other operating expenses -646,464.19 -645,045.99
Income from participating interests
derived from afliated undertakings 7 33,539,007.13 22,562,929.95
Other interest receivable and similar income
derived from afliated undertakings 8 3,124,153.86 2,126,012.09
other interest and similar income 255,759.64 2,639.72
Value adjustments in respect of nancial assets and of
investments held as current assets
3 -8,947,506.25 -34,985,416.74
Interest payable and similar expenses
concerning afliated undertakings -12,610,509.22 -9,140,689.59
other interest and similar expenses -1,618,065.61 -2,325,238.41
Tax on prot -3,506,212.04 -2,136,885.32
Prot after taxation 7,024,140.32 -28,048,938.76
Other taxes not shown above -525,025.00 -600,395.00
Prot for the nancial year 6,499,115.32 -28,649,333.76
Proposed distribution of prots
2021 2020
EUR EUR
Retained earnings 131,413,608.00 124,914,492.68
From the balance:
10% to the Board of Directors 0.00 0.00
90% to 17,836,650 shares 0.00 0.00
131,413,608.00 124,914,492.68
Dividend per share 0.00 0.00
The accompanying notes form an integral part of the annual accounts.
Company nancial statements
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3. Notes to the parent company nancial statements for the 2021 nancial year
Note 1. Overview
SOCFINAF S.A., (the “Company’’) was incorporated on
20
th
November 1972 as a public limited company and
adopted the status of “Sopar” on 10
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
and Companies under number B6225, and is listed on
the Luxembourg Stock Exchange under ISIN number
LU0056569402.
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
foreign companies, (ii) the acquisition by contribution,
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
similar body), loans or any other credit line, as well
as contracts relating thereto and (iii) the holding,
administration, development and management of
a portfolio of assets (composed in particular of the
assets described in points (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,
prot shares, warrants and all kinds of debt and equity
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.
Although the Company is included in the consolidated
nancial statements of Société Financière des
Caoutchoucs, abbreviated as “Socn”, which is the
largest entity in which the Company is consolidated,
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) or on the Internet site: www.socn.com.
The nancial year begins on 1
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 working capital
requirement is negative at EUR 3,613,159 with liabilities
due within 12 months (EUR 33,763,048) exceeding
assets due within 12 months (EUR 30,149,889).
Management believes that there are no elements
that would indicate that the EUR 20,000,000 loan
due to Bolloré Participations S.E. (note 6) will not be
extended by 31
st
December 2023.
During 2021, following the impact of the COVID-19
pandemic on the activities of the Company’s direct
and indirect subsidiaries, management has adapted to
the new restrictions and is constantly monitoring the
evolution of the risk related to this health crisis. The
spread of the virus is still active and unpredictable,
leaving economic development in an uncertain future.
Taking into account the impact of the COVID-19
outbreak, based on the information available to
date, the Company has prepared a cash ow plan
assessing its liquidity position based on management’s
best estimates. This cash ow plan shows sufcient
liquidity to meet its obligations and conrms the going
concern assumption for at least the twelve months
following the date of approval of its 2021 nancial
statements.
Company nancial statements
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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
have a signicant impact on the annual accounts for
the period in which the assumptions are changed.
The Board of Directors believes that the underlying
assumptions are appropriate and that the nancial
statements give a true and fair view of the nancial
position and results of the Company.
Currency conversion
The Company keeps its accounts in euros (EUR); the
annual accounts are expressed in this 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.
At the balance sheet date:
- the acquisition price of the nancial assets, 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 rate
prevailing at the balance sheet date;
- 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
recognised in the current period;
- 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
balance sheet date;
- 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
closing date.
Realised foreign exchange gains and losses and
unrealised losses are recognised in the prot and loss
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
nancial xed assets are subject to value adjustments
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
investment on an individual basis:
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
Company nancial statements
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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 consolidated net assets (i.e. equity attributable
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
value of the investment:
- 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
net assets or in the consolidated net assets;
- 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 considers 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.
Loans to afliated companies are subject to a value
adjustment in the event that the net book value test
by discounting future cash ows to shareholders does
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.
Securities
Securities are valued at the lower of cost, including
incidental costs or market value. A value adjustment
is recorded when the market price is lower than the
purchase price. Value adjustments are not maintained
if the reasons for their negotiations have ceased to
exist.
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
the prot and loss account.
Company nancial 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
244,779,050.37 244,349,925.24 308,818,543.42 304,096,770.27 553,597,593.79 548,446,695.51
Increases 1.00 429,125.13 3,274,229.42 4,969,241.68 3,274,230.42 5,398,366.81
Decreases -4,980,517.82 0.00 -33,560,744.06 -247,468.53 -38,541,261.88 -247,468.53
Acquisition cost/nominal value at
the end of the year
239,798,533.55 244,779,050.37 278,532,028.78 308,818,543.42 518,330,562.33 553,597,593.79
Value adjustments at the beginning
of the year
-40,307,867.93 -5,322,451.19 0.00 0.00 -40,307,867.93 -5,322,451.19
Impairment -3,000,090.00 -34,985,416.74 -8,979,601.28 0.00 -11,979,691.28 -34,985,416.74
Reversal 3,032,185.03 0.00 0.00 0.00 3,032,185.03 0.00
Value adjustments at the end
of the year
-40,275,772.90 -40,307,867.93 -8,979,601.28 0.00 -49,255,284.18 -40,307,867.93
Net book value at the end
of the year
199,522,760.65 204,471,182.44 269,552,427.50 308,818,543.42 469,075,188.15 513,289,725.86
Company nancial statements
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Information on companies in which the Company holds at least 20% of the capital
Dénomination Country % held
Net book value
EUR Year end
Currencies
of the
annual
accounts
Net equity
in foreign
currency as at
31/12/2021
(including net
income) (*)
Net income
in foreign
currency as at
31/12/2021
Plantations Socnaf Ghana Ghana 100.00 32,503,775 31.12.2021 GHS 225,168,097 77,289,093
Socn Agricultural Company Sierra Leone 93.00 20,445,954 31.12.2021 USD 16,376,492 19,372,491
Liberian Agricultural Company Liberia 100.00 13,793,904 31.12.2021 USD 57,140,499 4,744,936
Salala Rubber Corporation Liberia 64.91 0 31.12.2021 USD 2,861,133 -421,173
Bereby-Finances “BEFIN” Ivory Coast 87.06 13,604,405 31.12.2021 XAF 15,983,921,022 5,557,643,910
Socapalm Cameroon 67.46 40,640,840 31.12.2021 XAF 71,120,117,643 13,743,634,055
Okomu Oil Palm Company Nigeria 65.23 20,785,984 31.12.2021 NGN 39,416,747,556 11,316,334,412
Brabanta Congo (DRC) 99.80 17,805,468 31.12.2021 CDF 71,046,617,108 -5,175,012,473
Induservices Luxembourg 30.00 30,000 31.12.2021 EUR 239,523 3,393
Management Associates Luxembourg 20.00 400,000 31.12.2021 EUR 2,699,652 262,563
Socnde Luxembourg 20.00 801,000 31.12.2021 EUR 5,883,254 9,970
Terrasia Luxembourg 33.28 246,705 31.12.2021 EUR 584,487 29,567
SAFA France 100.00 26,535,600 31.12.2021 EUR 20,535,234 871,557
Induservices FR Switzerland 50.00 642,202 31.12.2021 EUR 993,334 -291,070
Socnco FR Switzerland 50.00 486,891 31.12.2021 EUR 15,598,403 6,288,105
Sogescol FR Switzerland 50.00 1,985,019 31.12.2021 USD 16,035,029 7,151,449
Socn Green Energy Switzerland
Socn Research Switzerland
Sodimex FR Switzerland 50.00 621,424 31.12.2021 EUR 4,047,180 413,732
Centrages Belgium 50.00 4,074,577 31.12.2021 EUR 3,554,850 440,347
Immobilière de la Pépinière Belgium 50.00 3,015,798 31.12.2021 EUR 3,645,669 -125,576
Socnco Belgium 50.00 879,550 31.12.2021 EUR 2,450,365 941,214
Sodimex Belgium 50.00 102,200 31.12.2021 EUR 306,748 133,827
STP Invest Belgium 100.00 0 31.12.2021 EUR 1,774,802 -1,241
199,401,096
(*) Based on unaudited nancial statements as of 31
st
December 2021.
Valuation of shares in afliated undertakings:
As of 31
st
December 2021, the Board of Directors decided to reduce the acquisition value of STP Invest by EUR 3,090,000 following the
offer to purchase Agripalma plantation.
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 afliated
undertakings.
Company nancial statements
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Valuation of loans to afliated undertakings:
As of 31
st
December 2021, loans to afliated undertakings are as follows:
Related parties Currency Balance Balance
Unrealised
exchange gains /
(losses) *
in currency in EUR EUR
Induservices EUR 130,000 130,000 0
Management Associates EUR 460,000 460,000 0
Salala Rubber Corporation USD 44,364,218 37,007,114 2,163,130
Brabanta USD 87,110,525 67,939,644 8,972,351
Socn Agricultural Company USD 106,709,256 87,491,004 6,725,185
Liberian Agricultural Company USD 33,281,379 29,542,238 (157,302)
Plantations Socnaf Ghana USD 34,000,000 28,882,480 1,136,944
Agripalma EUR 18,099,947 18,099,947 0
Situation as of 31
st
December 2021 269,552,427 18,840,308
* In accordance with Luxembourg legal and regulatory provisions and generally accepted accounting practices, receivables
from afliated undertakings are translated at the historical exchange rate and the unrealised foreign exchange gain or loss
is not recognised in the prot and loss account, 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 rate
prevailing at the balance sheet date.
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.
Company nancial statements
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Note 4. Equity
Share
capital
EUR
Share
premium
EUR
Legal
reserves
EUR
Other
reserves
EUR
Retained
earnings
EUR
Results for
the year
EUR
Balance as at 1
st
January 2020
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 131,986,469.61 21,577,356.83
Allocation of the result for the 2019
nancial year following decision of
the General Meeting held on 26th May
2020
• Retained earnings
21,577,356.83 -21,577,356.83
Results for the nancial year -28,649,333.76
Balance as at 31
st
December 2020
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 153,563,826.44 -28,649,333.76
Allocation of the result for the 2020
nancial year following decision of
the General Meeting held on 25
th
May
2021
• Retained earnings
-28,649,333.76 28,649,333.76
Results for the nancial year
6,499,115.32
Balance as at 31
st
December 2021
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 124,914,492.68 6,499,115.32
Issued capital
As at 31
st
December 2021 and 2020, the issued and fully paid
share capital is EUR 35,673,300.00 represented by 17,836,650
shares without nominal value.
Share premium
As at 31
st
December 2021 and 2020, the share premium amounted
to EUR 87,453,866.21.
Legal reserve
According to the legislation in force, it must be done annually
on the net prots of the Company after absorption of any losses
carried forward, an allocation to a legal reserve of 5%. This
allocation to the legal reserve ceases to be mandatory when
the reserve reaches 10% of the share capital. The legal reserve
cannot be distributed.
Company nancial statements
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Socnaf S.A.
Note 5. Amounts owed to afliated undertakings
As at 31
st
December 2021, this item consists mainly of:
- a debt to Socn for a nominal amount of EUR 120,000,000 (2020: EUR 90,000,000), and accrued interest
amounted EUR 708,333.33 (2020: EUR 1,077,041.10) and which bear a xed interest rate of 4.25%. This debt
is repayable early or at the latest on 10th November 2026.
- a debt to Socn for a nominal amount of EUR 75,293,176.97 (2020: EUR 0), and accrued interest amounted
EUR 518,720.55 (2020: EUR 0). This debt bears interest at a 3-month USD LIBOR rate +6.95% and is repayable
early or at the latest on 10
th
November 2026.
- debts to the subsidiary Socnde corresponding to the current account balance of EUR 2,247,085.02 (2020:
EUR 17,341,476.07).
As of 31
st
December 2021 and 2020, the maturity of debts to afliated undertakings is as follows:
2021 2020
Amounts owed to afliated undertakings: EUR EUR
becoming due and payable within one year 12,317,062.61 144,632,022.78
becoming due and payable between one to ve years 186,463,934.52 60,000,000.00
becoming due and payable more than ve years 0.00 20,000,000.00
198,780,997.13 224,632,022.78
Note 6. Amounts owed to undertakings with which the undertaking is linked
by vitue of participating interests:
As at 31
st
December 2021, this item consists mainly of:
- a payable to Bolloré Participations S.E. for a nominal amount of EUR 20,000,000 (2020: EUR 20,000,000), plus
accrued interest in the amount of EUR 200,542 (2020: EUR 200,542). This debt bears interest at a xed rate
of 4% per annum and is repayable on 30
th
June 2023.
-
- a payable to Palmboomen Cultuur Maatschappij “MOPOLI” for a nominal amount of EUR 20,000,000 (2020:
EUR 20,000,000), plus accrued interest in the amount of EUR 201,643.84 (2020: EUR 201,643.84). This debt
bears interest at a xed rate of 4% per annum without maturity date. Although reimbursements may be made
at rst demand, MOPOLI has undertaken not to request reimbursement of this advance before 30
th
June 2024.
Note 7. Income from participating interests
2021 2020
EUR EUR
Dividends received 32,868,363.78 22,562,929.95
Capital gain on disposal of nancial xed assets 670,643.35 0.00
33,539,007.13 22,562,929.95
Company nancial statements
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Note 8. Income from other investments and loans forming part of the xed
assets
2021 2020
EUR EUR
Interest on related companies’ receivables 3,124,153.86 2,126,012.09(*)
(*) This amount was previously disclosed under the caption: “Net income from participating interests”. To ensure comparability,
prior year gures are modied accordingly.
Note 9. Taxation
The Company is subject to all taxes to which Luxembourg commercial companies are subject.
Note 10. Remuneration of the Board of Directors
During 2021, the members of the Board of Directors received EUR 11,562.50 (2020: EUR 10,187.50) in attendance
fees and EUR 630,000 (2020: EUR 629,660) in Directors’ fees.
On 18
th
November 2019, the Company entered into an agreement under which it undertook to transfer the
economic interest of 32,732,432 shares in Okomu Oil Palm to Mr. Oyebode (Director of the Company). On the
same date, in accordance with the terms of the contract, a rst tranche of 10,910,810 Okomu Oil Palm shares
was transferred to Mr. Oyebode, who has until 18
th
November 2022 to settle the receivable resulting from the
sale in the amount of USD 1,546,210.34 (i.e. EUR 1,365,186.60 as at 31
st
December 2020). This receivable is
reported under “Other receivables with a residual term of more than one year”.
During 2021, no advances or loans were granted to members of the management or supervisory bodies.
Company nancial statements
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Note 11. Political and economic environment
Most of the investments are held directly or indirectly in companies operating in Africa, particularly in the
following countries:
- Sierra Leone,
- Liberia,
- Ivory Coast,
- Ghana,
- Nigeria,
- São Tomé et Principe,
- Cameroon,
- Congo (DRC).
Given the political instability that exists in these countries and their economic fragility (dependence on
international aid, ination in some cases, civil wars, etc), the investments held by the Company present a risk
in terms of exposure to political and economic uctuations.
Note 12. Off-balance sheet commitments
As at 31
st
December 2021 and 2020, the Company has no signicant off-balance sheet commitments.
Note 13. Signicant events after the end of the year
On 25
th
February 2022, the company reimbursed an amount of USD 25,000,000 (EUR 22,049,466) to Socn as a
partial reimbursement of its advance.
In February 2022, a number of countries (including the US, UK and EU) imposed sanctions against certain entities
and individuals in Russia as a result of the ofcial recognition of the Donetsk People Republic and 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 February 2022, there has been a signicant increase in volatility
on the securities and currency markets, as well as a signicant depreciation of the ruble against 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 and its impact on the
nancial position and results of the company.
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