2022
ANNUAL REPORT
Socfinaf S.A.
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Socfinaf S.A.
Table of contents
Group profile 4
1. Overview of the Group 4
2. History 4
3. Group structure 6
4. Information on Socfinaf’s holdings 7
International market for rubber and palm oil 22
1. Rubber 22
2. Palm oil 25
Environment and social responsibility 28
Key figures 29
1. Activity indicators 29
2. Key figures in the consolidated income statement and the cash flow statement 30
3. Key figures in the consolidated statement of financial position 30
Stock market data 31
Financial highlights of the year 31
Corporate governance statement 32
1. Introduction 32
2. Corporate governance chart 32
3. Board of Directors 32
4. Committees of the Board of Directors 35
4.1. Audit Committee 35
4.2. Appointment and Remuneration Committee 36
5. Remunerations 36
6. Shareholding status 36
7. Financial calendar 37
8. External audit 37
9. Corporate, social and environmental responsibility 37
10. Other information 37
Statement of compliance 38
Consolidated management report 39
Auditor’s report on the consolidated financial statements 43
Consolidated financial statements 48
1. Consolidated statement of financial position 48
2. Consolidated income statement 50
3. Consolidated statement of comprehensive income 51
4. Consolidated statement of cash flows 52
5. Consolidated statement of changes in equity. 53
6. Notes to the consolidated financial statements 54
Note 1. Overview and accounting policies 54
Note 2. Subsidiaries and associates 66
Note 3. Leases 68
Note 4. Intangible assets 70
Note 5. Property, plant and equipment 71
Note 6. Biological assets 72
Note 7. Depreciation and impairment 73
Note 8. Impairment of assets 73
Note 9. Non-wholly owned subsidiaries in which non-controlling interests are significant 75
Note 10. Investments in associates 77
Note 11. Financial assets at fair value through other comprehensive income 81
Note 12. Deferred taxes 81
Note 13. Current tax assets and liabilities 82
Note 14. Income tax expense 83
Note 15. Inventories 85
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Note 16. Trade receivables (current assets) 86
Note 17. Other receivables (current assets) 86
Note 18. Cash and cash equivalents 86
Note 19. Share capital and share premium 87
Note 20. Legal reserves 87
Note 21. Pension obligations 88
Note 22. Financial debts 90
Note 23. Trade and other payables 94
Note 24. Financial instruments 95
Note 25. Staff costs and average number of staff 97
Note 26. Other financial income 97
Note 27. Financial expenses 97
Note 28. Net earnings per share 98
Note 29. Dividends and Directors’ fees 98
Note 30. Information on related party 99
Note 31. Off balance sheet commitments 101
Note 32. Segment information 102
Note 33. Risk management 109
Note 34. Contingent liabilities 112
Note 35. Political and economic environment 113
Note 36. Events after the closing date 113
Note 37. Auditor’s fees 113
Company’s Management report 114
Audit report on the Company’s financial statements 121
Company financial statements 125
1. Balance sheet at 31
st
December 2022 125
2. Income statement for the year ended 31
st
December 2022 127
3. Notes to the parent company financial statements for the 2022 financial year 128
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ANNUAL REPORT 2022
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Socfinaf S.A.
Portrait du Groupe
Group profile
1. Overview of the Group
Socfinaf is a Luxembourg company and its registered
address is 4, Avenue Guillaume, L-1650, Luxembourg.
It was incorporated on 22
nd
October 1961 and is listed
on the Stock Exchange of Luxembourg.
The principal activity of Socfinaf is to manage a
portfolio of shares mainly focused on the operation of
more than 138,000 hectares of tropical palm oil and
rubber plantations in Africa. Socfinaf employs 25,453
people and has achieved a consolidated turnover of
EUR 637 million in 2022.
2. History
• 22/10/1961: Incorporation of Compagnie Internationale de Cultures (Intercultures) as a Luxembourg holding
company.
• 31/12/1961: Intercultures invests in two Congolese plantations named “La Compagnie Congolaise de l’Hévéa”
and “Cultures Equatoriales”.
• 18/04/1966: The shares of Intercultures have been listed on the Stock Exchange of Luxembourg.
• 31/12/1974: Nationalisation measures of industrial enterprises by the State of Zaire.
• 31/12/1976: Progress of negotiations with Zaire - exit of Zairian holdings from the portfolio and accounting
for Zaire claim.
• 19/05/1995: Increase of the share capital of Intercultures in order to relaunch the Company’s activity in the
field of tropical plantations.
• 30/06/1995: Acquisition of 65% of Société des Caoutchoucs du Grand Bereby “SOGB” in Côte d’Ivoire via
Bereby Finances “Befin”, a Côte d’Ivoire holding company.
• 30/06/1997: Acquisition of 5% of Palmci, a Côte d’Ivoire company producing palm oils.
• 30/06/1998: Increase of share capital and investment in Kenya in 70.8% of Red Lands Roses, producer of
roses and Socfinaf Company, coffee producer.
In addition, Intercultures acquired through its Luxembourg subsidiary (Indufina Luxembourg) 54%
of an oil palm plantation in Nigeria, Okomu Oil Palm Company.
• 31/03/1999: Intercultures continues the expansion of its investments in Africa and more specifically in
Liberia: acquisition of 70% of Weala Rubber Company, owner of a rubber factory and 75% of
Liberian Agricultural Company “LAC” which has a rubber concession.
• 31/03/2000: Acquisition of 89.64% of Société des Palmeraies de la Ferme Suisse “SPFS”, a Cameroon company
active in the production, processing and refining of palm oil.
• 31/12/2000: Through a Cameroon holding Palmcam, Intercultures continues its investments in Cameroon in
Socapalm, a company active in the production and processing of palm oil.
• 31/12/2001: Further increase in share capital which allowed Intercultures to increase its stake in Okomu Oil
Palm Company and in Befin (parent company of SOGB).
• 31/12/2006: Restructuring of Socfinal Group’s holdings, including the distribution of Intercultures shares by
Socfinasia (spin-off) and repositioning of the Group’s operating companies.
• 31/12/2007: Intercultures acquired 99.8% of Brabanta, a company developing a palm oil plantation in
Congo (DRC).
On the other hand, Intercultures sold its holdings Weala Rubber Company (Liberia) and Palmci
(Côte d’Ivoire).
• 31/12/2008: Constitution of Sud Comoë Caoutchouc “SCC” (Côte d’Ivoire) via the Ivorian holding Befin.
Intercultures sold 60% of Red Lands Roses (Kenya).
• 31/12/2009: Capital increase in Brabanta (DRC).
Increased participation in Salala Rubber Corporation “SRC” (Liberia).
• 17/03/2010: Sale of Socfinaf Company (Kenya).
• 10/01/2011: Extraordinary General Meeting which ratified abandon of the holding 29 status and change of the
denomination to Socfinaf.
• 01/07/2011: Share split by 10.
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• 06/10/2011: Acquisition of 32.9% of Palmcam’s shares which is totally owned by Socfinaf.
• 31/12/2012: Acquisition of 3.4% of Okomu Oil Palm Company’s shares.
Incorporation of Plantations Socfinaf Ghana “PSG”.
• 23/10/2013: Acquisition of 100% of STP Invest’s shares, a Belgium company which owns 88% of Agripalma,
benefitting from a grant of 5,000 hectares concession on the island of São Tomé.
• 31/12/2014: Capital increase with the issue of 1,474,200 new shares subscribed by Socfin in exchange for
100% of the shares of Société Anonyme Forestière et Agricole “SAFA”. It owns 68.93% of Safacam
(Cameroon).
• 01/01/2015: Beginning of Sogescol Cameroon and Camseeds, which were formed in 2014 by Sogescol FR and
Socfin Research.
• 05/10/2015: Acquisition of shares in Socapalm to increase the percentage holding to 4.57%.
• 04/11/2015: Constitution of Sodimex FR and Induservices FR.
• 01/02/2016: Liquidation of Palmcam (Cameroon).
Group profile
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Socfinaf S.A.
3. Group structure
Holding companies
SOCFINDE
Luxembourg
65%
20%
30%
50%
33%
15%
30%
19%
35%
10%
SOCFIN
Luxembourg
10%
SOCFINAF
Luxembourg
50%
100%
50%
50%
50%
50%
50%
STP INVEST
Belgium
100%
65%
100%
66%
100%
100%
35%
88%
BEREBY-FINANCES
Côte d’Ivoire
SAFA
France
93%
100%
100%
69%
87%
70%
100%
67%
73%
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4. Information on Socfinaf’s holdings
Portfolio Number of shares Direct %
Sierra Leone
SAC
119,970,000 93.00%
Liberia
LAC
25,000 100.00%
SRC
516 64.91%
Côte d'Ivoire
Befin
739,995 87.06%
Ghana
PSG
750,000 100.00%
Nigeria
Okomu
633,172,834 66.38%
Cameroon
Socapalm
3,086,886 67.46%
Democratic Republic of Congo
Brabanta
5,000 100.00%
France
SAFA
577,200 100.00%
Belgium
Socfinco
8,750 50.00%
Centrages
7,500 50.00%
Pépinière
3,333 50.00%
STP Invest
1,800 100.00%
Luxembourg
Socfinde
50,000 20.00%
Terrasia
3,328 33.28%
Induservices
3,000 30.00%
Management Associates
1,500 15.00%
Switzerland
Sogescol FR
2,650 50.00%
Socfinco FR
650 50.00%
Induservices FR
700 50.00%
Sodimex FR
650 50.00%
The following pages contain a summary of the activity
and comments on the financial information for the
past two financial years in which Socfinaf holds a
direct or indirect participation.
Unless indicated otherwise, equity includes capital,
reserves and the results brought forward before
allocation of current year results.
Corporate data refers to consolidated data.
The balance sheet figures are presented in the
functional currency of the respective entities.
Group profile
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Socfinaf S.A.
SOCFIN AGRICULTURAL COMPANY “SAC”
Share capital: USD 30,000,000
SAC is active in Sierra Leone in the production of palm oil.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Palm 12,349 0 12,349
Concessions: 18,473 ha
Permanent staff at 31
st
December 2022: 4,182
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Palm oil 51,919 52,307
Turnover (EUR 000) 58,554 46,760
Result (EUR 000) 16,516 16,405
Average sale price (EUR / kg)
Palm oil 1.13 0.89
Average rate EUR / USD 1.05 1.18
Closing rate EUR / USD 1.07 1.13
Key figures (USD 000)
At 31
st
December 2022 2021
Fixed assets
131,376 137,598
Current assets
7,315 13,214
Equity (*)
33,684 16,376
Debts, provisions and third parties (*)
105,007 134,435
Profit / (loss) for the period
17,307 19,372
Socfinaf’s holding (%)
93.00 93.00
(*) Before profit allocation.
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LIBERIAN AGRICULTURAL COMPANY “LAC”
Share capital: USD 31,105,561
LAC is active in Liberia in the field of rubber cultivation and industrial rubber processing.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Rubber 10,555 1,781 12,336
Concessions: 121,407 ha
Permanent staff at 31
st
December 2022: 2,052
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Rubber 27,401 26,872
Turnover (EUR 000) 40,757 36,783
Result (EUR 000) 3,509 4,018
Average sale price (EUR / kg)
Rubber 1.49 1.37
Average rate EUR / USD 1.05 1.18
Closing rate EUR / USD 1.07 1.13
Key figures (USD 000)
At 31
st
December 2022 2021
Fixed assets 83,995 85,048
Current assets 23,589 20,297
Equity (*) 60,817 57,140
Debts, provisions and third parties (*) 46,767 48,204
Profit / (loss) for the period 3,677 4,745
Socfinaf’s holding (%) 100.00 100.00
(*) Before profit allocation.
Group profile
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Socfinaf S.A.
SALALA RUBBER CORPORATION “SRC”
Share capital: USD 49,656,328
SRC is active in Liberia in the rubber sector.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Rubber plantation 3,204 1,241 4,445
Concessions: 8,000 ha
Permanent staff at 31
st
December 2022: 850
Production and turnover
At 31
st
December 2022 2021
Production (tons) (*)
Rubber 4,563 3,710
Turnover (EUR 000) 4,469 3,296
Result (EUR 000) -2,229 -357
Average sale price (EUR / kg)
Rubber 0.98 0.89
Average rate EUR / USD 1.05 1.18
Closing rate EUR / USD 1.07 1.13
Key figures (USD 000)
At 31
st
December 2022 2021
Fixed assets 46,130 47,962
Current assets 2,686 2,870
Equity 526 2,861
Debts, provisions and third parties 48,291 47,970
Profit / (loss) for the period -2,335 -421
Socfinaf’s holding (%) 64.91 64.91
(*) Agricultural production fully sold to LAC.
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BEREBY-FINANCES “BEFIN”
Share capital: CFA 8,500,000,000
This Côte d’Ivoire holding company holds 73.16% of SOGB and 70.01% of SCC.
SOCIETE DES CAOUTCHOUCS DU GRAND BEREBY “SOGB”
Capital: CFA 21,601,840,000
SOGB is active in Côte d’Ivoire in the production and processing of palm oil and rubber.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Palm 7,471 0 7,471
Rubber 12,746 3,116 15,862
20,217 3,116 23,333
Concessions: 34,712 ha
Permanent staff at 31
st
December 2022: 5,973
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Rubber 65,815 67,727
Palm oil 35,301 38,935
Turnover (EUR 000) 143,125 126,646
Result (EUR 000) 23,863 22,453
Average selling price (EUR / kg)
Rubber 1.52 1.30
Palm oil 1.13 0.93
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
At 31
st
December 2022 2021
Fixed assets 64,408 66,133
Current assets 27,065 30,876
Equity (*) 68,879 66,231
Debts, provisions and third parties (*) 22,594 30,778
Profit / (loss) for the period 15,653 14,728
Distribution 8,000 13,000
Socfinaf’s indirect holding (%) 63.69 63.69
(*) Before profit allocation.
Group profile
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Socfinaf S.A.
SUD COMOË CAOUTCHOUC “SCC”
Share capital: CFA 964,160,000
SCC is active in Côte d’Ivoire in the industrial rubber processing sector.
Key data
Permanent staff at 31
st
December 2022: 410
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Rubber 39,554 39,273
Turnover (EUR 000) 57,479 49,859
Result (EUR 000) 4,858 5,340
Average selling price (EUR / kg)
Rubber 1.45 1.26
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
At 31
st
December 2022 2021
Fixed assets 3,977 4,102
Current assets 11,978 11,123
Equity (*) 7,987 7,800
Debts, provisions and third parties (*) 7,968 7,426
Profit / (loss) for the period 3,187 3,503
Distribution 2,500 2,500
Socfinaf’s indirect holding (%) 60.95 60.95
(*) Before profit allocation.
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PLANTATIONS SOCFINAF GHANA “PSG”
Share capital: GHS 150,000,000
PSG is active in Ghana in the production of palm oil and rubber.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Rubber 627 315 942
Palm 6,140 0 6,140
6,767 315 7,082
Concessions: 18,304 ha
Permanent staff at 31
st
December 2022: 2,314
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Rubber 814 347
Palm oil 25,375 27,538
Turnover (EUR 000) 33,083 26,378
Result (EUR 000)
5,808 11,249
Average selling price (EUR / kg)
Rubber 1.19 1.13
Palm oil 1.26 0.93
Average rate EUR / GHS 8.42 6.87
Closing rate EUR / GHS 9.15 6.80
Key figures (GHS 000)
At 31
st
December 2022 2021
Fixed assets 465,946 475,665
Current assets 65,401 62,178
Equity (*) 274,059 225,168
Debts, provisions and third parties (*) 257,288 312,675
Profit / (loss) for the period 48,891 77,289
Socfinaf’s holding (%) 100 100
(*) Before profit allocation.
Group profile
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Socfinaf S.A.
OKOMU OIL PALM COMPANY
Share capital: NGN 476,955,000
Okomu is active in Nigeria in the production and processing of palm oil and rubber.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Rubber 6,025 1,310 7,335
Palm 19,061 0 19,061
25,086 1,310 26,396
Concessions: 33,113 ha
Permanent staff at 31
st
December 2022: 1,388
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Rubber 8,124 9,285
Palm oil 54,091 46,429
Turnover (EUR 000) 133,280 79,363
Result (EUR 000) 38,963 23,977
Average selling price (EUR / kg)
Rubber 1.52 1.27
Palm oil 2.23 1.45
Average rate EUR / NGN 445 472
Closing rate EUR / NGN 479 468
Key figures (NGN 000)
At 31
st
December 2022 2021
Fixed assets 55,902,697 49,665,596
Current assets 13,717,176 15,674,442
Equity (*) 42,017,150 39,416,748
Debts, provisions and third parties (*) 27,602,722 25,923,291
Profit / (loss) for the period 17,342,677 11,316,334
Distribution 14,000,000 7,631,280
Gross dividend per share (NGN) 14.68 8.00
Socfinaf’s holding (%) 66.38 65.23
(*) Before profit allocation.
Group profile
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SOCAPALM
Share capital: CFA 45,757,890,000
Socapalm is active in Cameroon in the production and processing of palm oil and the cultivation of rubber trees.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Rubber 2,075 0 2,075
Palm 29,197 3,263 32,460
31,272 3,263 34,535
Concessions: 58,063 ha
Permanent staff at 31
st
December 2022: 2,591
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Palm oil 146,232 152,323
Rubber (*) 1,734 2,030
Turnover (EUR 000) 112,852 114,731
Result (EUR 000) 16,269 20,617
Average selling price (EUR / kg)
Palm oil 0.75 0.74
Rubber 0.82 1.14
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
At 31
st
December 2022 2021
Fixed assets 74,493 72,086
Current assets 20,762 17,580
Equity (**) 66,234 71,120
Debts, provisions and third parties (**) 29,022 18,546
Profit / (loss) for the period 10,672 13,524
Distribution 9,450 15,600
Socfinaf’s holding (%) 67.46 67.46
(*) Agricultural production fully sold to SAFACAM.
(**) Before profit allocation.
Group profile
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Socfinaf S.A.
SOCIETE ANONYME FORESTIERE ET AGRICOLE “SAFA”
Share capital: EUR 4,040,400
This French company owns 68.93% of Safacam
SAFACAM
Capital: CFA 6,210,000,000
Safacam is active in Cameroon in the production and processing of palm oil and the cultivation of rubber trees.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Rubber 5,230 76 5,306
Palm 3,420 864 4,284
8,650 940 9,590
Concessions and land owned: 17,690 ha
Permanent staff at 31
st
December 2022: 2,444
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Palm oil 16,526 16,945
Palm kernel oil 8,531 10,197
Rubber 6,377 6,919
Turnover (EUR 000) 35,406 32,790
Result (EUR 000) 4,189 3,778
Average selling price (EUR / kg)
Palm Products 1.50 1.39
Rubber 1.66 1.33
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
At 31
st
December 2022 2021
Fixed assets 21,901 22,633
Current assets 8,251 9,184
Equity (*) 21,374 21,105
Debts, provisions and third parties (*) 8,778 10,712
Profit / (loss) for the period 2,748 2,478
Distribution 2,484 2,479
Socfinaf’s indirect holding (%) 69.05 69.05
(*) Before profit allocation.
Group profile
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SOCIETE DES PALMERAIES DE LA FERME SUISSE “SPFS”
Share capital: CFA 2,601,690,000
SPFS is a 100% subsidiary of Socapalm. SPFS is a palm oil refining company.
Key data
Permanent staff at 31
st
December 2022: 29
Production and turnover
At 31
st
December 2022 2021
Production (tons)
RBD 7,719 8,431
Turnover (EUR 000) 10,648 9,445
Result (EUR 000) 1,986 500
Average selling price (EUR / kg)
Refined packaged oil 1.33 1.44
Refined oil in bulk 1.54 1.23
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
At 31
st
December 2022 2021
Fixed assets 938 1,087
Current assets 4,308 2,462
Equity 4,137 2,834
Debts, provisions and third parties 1,108 715
Profit / (loss) for the period 1,303 328
Socfinaf’s indirect holding (%) 67.46 67.46
Group profile
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Socfinaf S.A.
AGRIPALMA
Share capital: STN 156,094,090
Agripalma is a company active in the production of palm oil on the island of São Tomé and Principe.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Palm 2,100 0 2,100
Concessions and land owned: 4,917 ha
Permanent staff at 31
st
December 2022: 848
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Palm oil 6,430 5,636
Turnover (EUR 000) 7,782 4,777
Result (EUR 000) 849 -1,878
Average selling price (EUR / kg)
Palm oil 1.21 0.85
Average rate EUR / STN 24.50 24.50
Closing rate EUR / STN 24.50 24.50
Key figures (STN million)
At 31
st
December 2022 2021
Fixed assets 691 728
Current assets 103 58
Equity 44 24
Debts, provisions and third parties 750 762
Profit / (loss) for the period 21 -46
Socfinaf’s indirect holding (%) 88.00 88.00
Group profile
Socfinaf S.A.
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BRABANTA
Share capital: CDF 34,243,622,100
Brabanta is a Congolese company (DRC) active in the production of palm oil.
Key data
Area (hectares) Planted area
At 31
st
December 2022 Mature Immature Total
Palm 6,072 0 6,072
Concessions: 8,380 ha
Permanent staff at 31
st
December 2022: 2,259
Production and turnover
At 31
st
December 2022 2021
Production (tons)
Palm oil 13,769 15,993
Turnover (EUR 000) 16,366 13,117
Result (EUR 000) -672 -2,202
Average selling price (EUR / kg)
Palm oil 1.19 0.82
Average rate EUR / CDF 2,103 2,351
Closing rate EUR / CDF 2,151 2,265
Key figures (CDF million)
At 31
st
December 2022 2021
Fixed assets 133,043 140,846
Current assets 115,053 113,578
Equity (*) 69,634 71,047
Debts, provisions and third parties (*) 178,463 183,377
Profit / (loss) for the period -1,413 -5,175
Socfinaf’s holding (%) 100.00 99.80
(*) Before profit allocation.
Group profile
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Socfinaf S.A.
SOGESCOL FR
Share capital: CHF 5,300,000
Sogescol FR is a Swiss company that sells rubber and palm oil.
The financial year ended on 31
st
December 2022 with a profit of USD 8,864,552. The Board of Directors will
propose to the General Meeting of Shareholders a profit distribution of USD 8,000,000.
2022 2021
Average rate EUR / USD
1.05 1.18
Closing rate EUR / USD
1.07 1.13
Key figures (USD 000)
At 31
st
December 2022 2021
Fixed assets
773 1,034
Current assets
50,991 51,544
Equity (*)
17,955 14,940
Debts, provision and third parties (*)
33,809 37,637
Profit / (loss) for the period
8,865 6,057
Distribution
8,000 6,000
Gross dividend per share (USD)
1,509 1,132
Socfinaf’s holding (%)
50.00 50.00
(*) Before profit allocation.
Group profile
Socfinaf S.A.
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ANNUAL REPORT 2022
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21
SOCFINCO FR
Share capital: CHF 1,300,000
Socfinco FR is a Swiss company, which provides services, studies and management of agro-industrial plantations.
Socfinco FR covers the agro-industrial sector of palm oil and rubber.
The financial year ended 31
st
December 2022 shows a profit of EUR 8,833,675. The Board of Directors will
propose to the General Meeting of Shareholders a profit distribution of EUR 8,000,000.
Key figures (EUR 000)
At 31
st
December 2022 2021
Fixed assets 4,309 5,974
Current assets 22,133 19,609
Equity (*) 16,432 15,598
Debts, provisions and third parties (*) 10,010 9,985
Sales and services 30,293 25,179
Profit / (loss) for the period 8,834 6,288
Distribution 8,000 8,000
Gross dividend per share (EUR) 6,154 6,154
Socfinaf’s holding (%) 50.00 50.00
(*) Before profit allocation.
22
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ANNUAL REPORT 2022
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Socfinaf S.A.
1. Rubber
SGX - NATURAL RUBBER - 5 years +
SGX - NATURAL RUBBER - 1 year +
$ct/Kg
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022
Nov 2022
Dec 2022
Jan 2023
Feb 2023
100
120
140
160
180
200
220
240
260
100
120
140
160
180
200
220
240
260
RSS3
TSR20
International market for rubber and palm oil
$ct/Kg
50
100
150
200
250
300
50
100
150
200
250
300
RSS3
TSR20
International market for rubber and palm oil
Socfinaf S.A.
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The international market in 2022
The average natural rubber price (TSR20 1
st
position on
SGX) for the year 2022 is USD 1,548/T FOB Singapore
compared to USD 1,677/T in 2021, i.e. a decrease of
USD 129/T (-7.7%).
On the other hand, converted into Euro, the average
for the year 2022 is EUR 1,469/T against EUR 1,417/T
for the year 2021, i.e. an increase of 3.7% thanks to a
strengthening of the dollar against the euro.
After their strong increase in 2021 linked to the
global economic recovery, natural rubber prices have
remained sustained with monthly averages above
USD 1,700/T over the first 4 months of 2022.
Russia’s invasion of Ukraine at the end of February
had a positive impact on natural rubber prices, which
moved slightly above USD 1,800/T in the wake of
soaring crude oil and other commodity prices.
Market sentiment turned bearish as from April onwards
because of the Chinese government’s “zero Covid”
policy measures. These measures have severely
affected the economy and mobility, reducing demand
from the world’s largest consumer of natural rubber.
At the same time, European sanctions against Russia,
a major producer of synthetic rubber and tyre
components, have led to production slowdowns in tyre
factories, resulting in a de facto drop in demand for
natural rubber.
In the summer of 2022, the energy crisis in Europe
due to the effects of sanctions against Russia has
had a negative impact on rubber demand for tyre
manufacturers. The level of inflation in Europe and
the US is also a concern for consumers who prefer to
postpone their decision to buy new cars.
At the end of 2022 the tyre manufacturers, facing
a slowdown in production in their factories and
therefore an increase in stocks requested their
suppliers to reduce the long-term contracts or to
postpone shipments to the following months.
This slowdown in demand from the tyre industry
has strongly affected natural rubber prices, which
bottomed out at USD 1,151/T in October 2022.
The lifting of restrictions following the end of China’s
“zero Covid” policy in December 2022 allowed natural
rubber prices to recover to around USD 1,400/T at the
end of the year.
The situation in global logistics, which was severely
disrupted in 2021 until the first half of 2022 by the
lack of space on ships, significantly improved in the
last quarter of the year.
In the latest figures published by the International
Rubber Study Group (IRSG) in February 2023, the
world natural rubber production in 2022 is estimated
at 14.57 million tons, up 5.8% in 2021, while the world
consumption is forecasted at 14.31 million tons, up
1.7% in 2021, resulting in a surplus of 264,000 tons at
the end of 2022.
The TSR20 1
st
FOB Singapore position on SGX settled
on 30
th
December 2022 at USD 1,302/T.
Outlook 2023
Natural rubber prices are expected to remain under
pressure amidst conflict on the Ukrainian front,
high global inflation and uncertain developments on
Chinese growth.
Indeed, inflationary pressure from prolonged supply
chain disruptions and high-energy costs will continue
to threaten the global economic growth.
At the end of 2022 and this is expected to continue
during the first half of 2023, the slowdown in global
economic activity has had a strong impact on demand
from tyre manufacturers. Faced with a drop in
production in their factories, they have accumulated
significant stocks, forcing them to reduce their
long-term contracts and postpone shipments to the
following months.
The evolution of China’s economic growth in 2023
will be decisive for natural rubber prices, which are
expected to fluctuate according to the indicators of
the industrial health of the world’s largest natural
rubber consumer.
International market for rubber and palm oil
24
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Socfinaf S.A.
The major uncertainty related to the evolution of
the Russian-Ukrainian crisis is expected to continue
to influence the evolution of rubber prices; the latter
being impacted by the rise in crude oil and energy
prices.
Because of a slowdown in global economic growth
and the arrival on the market of new large capacity
vessels, freight rates have fallen sharply, particularly
from South-East Asian countries, making Asian
rubbers more attractive than in 2021 and 2022, to the
detriment of African rubber. Freight rates out of Africa
are also expected to fall, but with a time lag.
For 2023, the IRSG estimates world production at
14.74 million tons (up 1.1%) and world demand at
14.61 million tons (up 2.1%), resulting in a rubber
surplus of 129,000 tons, which would be half the
surplus in 2022.
Rubber consumption would therefore be lower than
production, supported by an expansion of volumes in
several countries such as Côte d’Ivoire, Cambodia,
Laos and Burma. By 2022, Côte d’Ivoire would be the
world’s third largest producer with 1.3 million tons,
behind Thailand and Indonesia and ahead of Vietnam.
The TSR20 1
st
position FOB Singapore on SGX settled
on 28
th
February 2023 at USD 1,362/T.
International market for rubber and palm oil
Socfinaf S.A.
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2. Palm oil
CIF ROTTERDAM - PALM OILS - 5 years +
CIF ROTTERDAM - PALM OILS - 1 year +
$/Mton
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022
Nov 2022
Dec 2022
Jan 2023
Feb 2023
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
CPO
CPKO
$/Mton
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
CPO
CPKO
International market for rubber and palm oil
26
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Socfinaf S.A.
World palm oil production in million tons
(source: Oil World)
2023 (*) 2022 2021 2020 2019 2018 2017 2015 2005 1995
Indonesia 47.9 46.5 44.7 42.8 44.2 41.6 36.8 33.4 14.1 4.2
Malaysia 18.7 18.3 18.1 19.1 19.9 19.5 19.9 20.0 15.0 7.8
Other 14.2 13.8 13.1 12.2 12.4 11.9 11.2 9.1 4.8 3.2
TOTAL
80.8 78.6 75.9 74.1 76.5 73.0 67.9 62.5 33.9 15.2
(*) Estimated (December 2022).
Production of the main oils in million tons
(source: Oil World)
Oct 2022 to Sep 2023 (*) 2022 2021 2020 2019 2018 2017 2015 2005 1995
Palm 80.3 78.6 75.9 74.1 76.5 73.0 67.9 62.5 33.9 15.2
Soya 61.2 59.8 60.1 58.6 56.8 56.8 53.9 48.8 33.6 20.2
Rape 28.7 26.6 26.9 25.3 24.9 25.6 25.4 26.3 16.2 10.8
Sunflower 20.9 20.1 18.9 21.3 20.7 19.0 19.0 15.1 9.7 8.7
Palm kernel 8.4 8.2 8.0 7.8 8.1 7.7 7.2 6.8 4.0 2.0
Cotton 4.5 4.4 4.4 4.6 4.6 4.7 4.2 4.7 5.0 3.9
Peanut 4.7 4.7 4.4 4.2 3.7 4.0 4.2 3.7 4.5 4.3
Copra 2.9 3.1 2.8 2.6 2.9 2.9 2.4 2.9 3.2 3.3
TOTAL
211.6 205.5 201.4 198.5 198.2 193.7 184.2 170.8 110.1 68.4
(*) Estimated (December 2022).
The international market in 2022
The average price for CIF Rotterdam crude palm oil
in 2022 is USD 1,352/T compared to USD 1,195/T in
2021.
The year 2021 was marked by an almost uninterrupted
rise in palm oil prices due to a much lower than
expected supply. This contraction in supply, combined
with a massive return in demand following the end of
the containment measures, led to a very significant
rise in palm oil prices in 2021.
This price increase continued into 2022. Indeed, the
uncertainties regarding the global supply of vegetable
oils were further accentuated during the first quarter.
Firstly, in Malaysia, where the effects of the plan
to accelerate the return of foreign workers to the
plantations were slow to be felt. Then in Indonesia,
which, worried about its domestic market, decided
to restrict its palm oil exports at the end of January
while global demand continued to rise.
At the end of February, the Russian-Ukrainian conflict
put the vegetable oil market on edge. Ukraine
alone traditionally supplied over 50% of the world’s
sunflower oil production. Buyers were forced to turn
to alternative vegetable oils (soya, palm, rapeseed,
etc.) whose prices soared. At the beginning of March,
the CIF Rotterdam CPO broke through the historic
USD 2,000/T threshold, i.e. an increase of almost 50%
since the beginning of the year.
In April 2022, tensions rose again with Indonesia’s
decision to suspend palm oil exports in an already
tight market.
The rationing of the overall supply of vegetable oils in
a context where demand remained strong contributed
to maintaining high price levels throughout most of
the first half. The surge in oil prices, with a barrel of
oil breaking the USD 120 mark on several occasions,
also helped to support palm oil prices during this
period.
The price surge ended in May with the easing of export
restrictions in Indonesia. The level of palm oil stocks
in the country was then close to 9 million tons. The
International market for rubber and palm oil
Socfinaf S.A.
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ANNUAL REPORT 2022
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27
world’s largest producer therefore had no choice
but to supply the international market by massively
opening the floodgates for exports, thus creating
strong downward pressure on prices.
The loosening of the grip on sunflower seed exports
from the Black Sea has also helped to alleviate
concerns about the overall supply of vegetable oils.
Prices thus fell back below the USD 1,000/T mark in
September.
During the last quarter of 2022, despite abundant
supply and high stock levels, palm oil prices held up
well thanks to continued strong demand, particularly
in Asia. At the end of December 2022, the CIF
Rotterdam CPO was trading at around USD 1,030/T.
Outlook 2023
After an unprecedented decline at the height of the
Covid pandemic in 2020, palm oil production increased
in 2021 and 2022. The increase is expected to continue
in 2023 with production exceeding 80 million tons.
However, several uncertainties weigh on palm oil
production. Malaysia, the world’s second largest
producer, is facing a structural labour problem that
could negatively affect its production figures. In
addition, soaring fertiliser prices could lead growers
to restrict their use, which would limit the expected
increase in yields.
Indonesia, for its part, is increasing the number of
announcements aimed at limiting the volumes of palm
oil exported in order to satisfy its domestic market
first. Palm oil consumption for the Indonesian biodiesel
industry is also expected to increase as the country
plans to move from the B30 mandate to the B35
mandate (i.e. 35% palm oil in biodiesel composition).
The area harvested for soybeans for the 2023 marketing
year is expected to increase, and production forecasts
for other oilseeds (rapeseed, sunflower, etc.) are
also favourable, suggesting an abundant supply of
vegetable oils on the markets in 2023.
Against the backdrop of the global economic
slowdown, demand could show signs of weakening
even though the main importing countries, led by
India and China, are not expected to see a significant
drop in consumption. In addition, demand should also
be supported by the biofuel industry, thus preventing
prices from falling too sharply.
The evolution of oil prices, the purchasing policies
of importing countries, the implementation of tax
incentives or customs barriers, will also play a
determining role in the evolution of palm oil prices.
On 28
th
February 2023, the CIF Rotterdam CPO quotes
at around USD 1,005/T.
28
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Socfinaf S.A.
The responsible management policy is based on the
Group’s three pillars of commitment, alongside
its specific commitment to transparency: rural
development, workers and local communities, and
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
defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin
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.
Environment and social responsibility
Socfinaf S.A.
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29
1. Activity indicators
Area (hectares) Rubber Palm
At 31
st
December 2022
Immatures (by year of planting)
2022 391
755
2021 935
1,480
2020 1,300
1,105
2019 1,425 0
2018 1,795 0
2017 2,110 0
2016 606 0
2015 31 0
2014 13 0
2013
21 0
Total immatures 8,627 3,339
Young (from 8 to 11 years) 12,683 (from 4 to 7 years) 19,851
Prime (from 12 to 22 years) 17,554 (from 8 to 18 years) 41,073
Old (above 22 years) 8,414 (above 18 years) 26,696
Total in production 38,651
87,620
TOTAL 47,278
90,959
Area (hectares) 2022 2021 2020 2019 2018
Palm 90,959 91,004 91,207 91,220 91,099
Rubber 47,278 47,940 48,146 48,361 48,071
TOTAL 138,237 138,944
139,353 139,581 139,170
Production 2022 2021 2020 2019 2018
Palm oil (tons)
349,644 355,924 321,348 278,979 262,075
Own production 308,544 309,149 285,726 244,551 231,522
Third party purchases 41,100 46,775 35,623 34,428 30,554
Rubber (tons)
147,271 151,848 144,456 147,851 129,703
Own production 59,027 55,450 48,972 53,749 47,753
Third party purchases 88,243 96,397 95,484 94,102 81,950
Seeds (thousands) 4,495 3,362 1,413
Own production 4,495 3,362 1,413
Key figures
30
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Socfinaf S.A.
Key figures
Turnover (EUR million) 2022 2021 2020 2019 2018
Palm 408 328 241 210 206
Rubber 222 196 157 164 135
Other agricultural products 0 1 1 0 0
Other 7 3 4 3 3
TOTAL
637 527 403 376 345
Staff 2022 2021 2020 2019 2018
Average workforce
25,453 24,596 23,291 24,166 22,707
2. Key figures in the consolidated income statement and the cash flow
statement
(EUR million) 2022 2021 2020 2019 2018
Turnover 637 527 403 376 345
Operating income 175 143 56 47 42
Profit / (loss) for the period attributable to the Group 76 72 -4 4 5
Net cash flows from operating activities 190 154 91 65 91
Free cash flows (*) 136 93 30 9 6
(*) Free cash flows = cash flows from operating activities + cash flows from investing activities.
3. Key figures in the consolidated statement of financial position
(EUR million) 2022 2021 2020 2019 2018
Bearer biological assets 350 366 364 405 405
Other non-current assets 324 316 290 304 302
Current assets 230 209 171 169 140
Total equity 509 436 334 385 383
Non-current liabilities 196 274 182 197 142
Current liabilities 199 180 310 298 323
Socfinaf S.A.
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31
(EUR) 2022 2021 2020 2019 2018
Number of shares 17,836,650 17,836,650 17,836,650 17,836,650 17,836,650
Equity attributable to the owners of the
Company 384,444,515 315,276,676 224,895,450 272,328,282 272,815,410
Undiluted net profit per share
4.24 4.04 -0.22 0.22 0.27
Dividend per share 0.00 0.00 0.00 0.00 0.00
Share price
Minimum 11.30 8.10 7.00 8.2 10.90
Maximum 15.80 12.40 12.60 12.2 16.90
Closing 12.10 12.00 11.10 12 11.40
Market capitalisation (*) 215,823,465 214,039,800 197,986,815 214,039,800 203,337,810
Dividend paid / net profit attributable to the
owners of the Company
N.a. N.a. N.a. N.a. N.a.
Dividends / market capitalisation N.a. N.a. N.a. N.a. N.a.
Market price / undiluted net profit per share 2.86 2.97 -51.03 55.60 42.68
(*) Market capitalisation is calculated by multiplying the number of shares by the closing share price.
Liquidation of Sodimex.
Sale of 5% of Management Associates to Socfin.
Financial highlights of the year
Stock market data
32
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Socfinaf S.A.
Corporate governance statement
1. Introduction
Socfinaf pays close attention to the evolution of the ten
principles of corporate governance of the Luxembourg
Stock Exchange. It commits to provide the necessary
explanations for a comprehensive understanding on
how the Company functions.
Corporate governance is a set of principles and
rules whose main objective is to contribute to long-
term value creation. It allows the Board to promote
the interests of the Company and its shareholders
while putting in place effective control systems,
management of risks and conflicts of interests.
2. Corporate governance chart
The Board of Directors adopted the Corporate Governance Chart on 21
st
November 2018. It was updated on
29
th
March 2023 and is available on the Group’s website.
3. Board of Directors
Composition of the Board of Directors
Name Nationality
Year of
Birth Position
First
nomination
Term of
office
Mr. Hubert Fabri Belgian 1952 Chairman
(a)
AGM 1981 AGM 2028
Mr. Vincent Bolloré French 1952 Director
(a)
AGM 1993 AGM 2023
Bolloré Participations SE
represented by Mr. Cyrille Bolloré
French 1985 Director
(a)
AGM 2018 AGM 2024
Mr. Gbenga Oyebode Nigerian 1959 Director
(a)
AGM 2011 AGM 2023
Mr. François Fabri Belgian 1984 Managing Director
(b)
AGM 2014 AGM 2026
Mr. Philippe Fabri Belgian 1988 Director
(b)
AGO 2020 AGO 2026
Mr. Frédéric Lemaire Belgian 1970 Director
(c)
AGM 2019 AGM 2025
(a) Non-Executive Non-Independent Director
(b) Executive Non-Independent Director
(c) Independent Director
The term served as director by Mr. Vincent Bolloré
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 2029.
The term served as director by Mr. Gbenga Oyebode
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 2029.
Corporate governance statement
Socfinaf S.A.
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33
Other mandates held by the Directors in listed companies
Hubert Fabri
Chairman
Positions and offices held in Luxembourg companies
• Chairman and director of the Board of Directors of Société Financière des Caoutchoucs “Socfin”, Socfinaf
and Socfinasia.
Positions and offices held in foreign companies
• Chairman and Director of the Board of Directors of Palmeraies de Mopoli;
• Vice-Chairman of Société des Caoutchoucs du Grand Bereby “SOGB”;
• Vice-Chairman and member of the Supervisory Board of Compagnie du Cambodge;
• Director of Compagnie de l’Odet, Financière Moncey, Okomu Oil Palm Company, S.A.F.A. Cameroon
“Safacam”, Société Industrielle et Financière de l’Artois and La Forestière Equatoriale;
• Permanent representative of Administration and Finance Corporation “AFICO” at the Board of Société
Camerounaise de Palmeraies “Socapalm”.
Vincent Bolloré
Director
Positions and offices held in Luxembourg companies
• Director of Société Financière des Caoutchoucs “Socfin”, Socfinaf and Socfinasia.
Positions and offices held in foreign companies
• Chairman and Chief Executive Officer of Compagnie de l’Odet;
• Vice-Chairman of Société des Caoutchoucs du Grand Bereby “SOGB”;
• Director of Compagnie de l’Odet;
• Permanent representative of Bolloré Participations SE on the Boards of Directors of S.A.F.A. Cameroon
“Safacam”, Société des Caoutchoucs du Grand Bereby “SOGB” and Société Camerounaise de Palmeraies
“Socapalm”.
Bolloré Participations
Director
Positions and offices held in Luxembourg companies
• Director of Socfinaf.
Positions and offices held in foreign companies
• Member of the Supervisory Board of Compagnie du Cambodge;
• Director of Bolloré SE, Compagnie des Tramways de Rouen, Société des Chemins de Fer et Tramways du Var
et du Gard, Société des Caoutchoucs du Grand Bereby “SOGB”, Société Industrielle et Financière de l’Artois,
Financière Moncey, S.A.F.A. Cameroun “Safacam” and Société Camerounaise de Palmeraies “Socapalm”.
Gbenga Oyebode
Director
Positions and offices held in Luxembourg companies
• Director of Socfinaf.
Positions and offices held in foreign companies
• Chairman of Okomu Oil Palm Company;
• Director of Nestlé Nigeria and Lafarge Africa.
Corporate governance statement
34
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Socfinaf S.A.
François Fabri
Managing Director
Positions and offices held in Luxembourg companies
• Director of Société Financière des Caoutchoucs “Socfin”, Socfinaf and Socfinasia;
• Executive Director of Socfinaf.
Positions and offices held in foreign companies
• Permanent Representative of Administration and Finance Corporation “AFICO” on the Board of Société des
Caoutchoucs du Grand Bereby “SOGB” and Société Industrielle et Financière de l’Artois;
• Managing Director of Palmeraies de Mopoli;
• Director of S.A.F.A. Cameroon “Safacam” and Société Cameroonaise de Palmeraies “Socapalm”.
Philippe Fabri
Director
Positions and offices held in Luxembourg companies
• Director of Société Financière des Caoutchoucs “Socfin”, Socfinaf and Socfinasia;
• Executive Director of Société Financière des Caoutchoucs «Socfin».
Positions and offices held in foreign companies
• Member of the Supervisory Board of Palmeraies de Mopoli;
• Permanent representative of Société Anonyme Forestière et Agricole “SAFA” on the board of S.A.F.A.
Cameroon “Safacam”.
Frédéric Lemaire
Director
Positions and offices held in Luxembourg companies
• Director of Socfinaf.
Corporate governance statement
Socfinaf S.A.
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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 specifies the term of service and
verifies that the Director meets the criteria for
independence.
In the event of a vacancy due to death or following the
resignation of one or more Directors, the remaining
Directors will proceed to temporary co-optations.
These co-optations will be subject to the approval of
the Annual General Meeting at its next meeting. The
Director appointed to replace another Director will
complete the term of his predecessor.
Role and powers of the Board of Directors
The Board of Directors is the body responsible for
the management of the Company and the control of
day-to-day management. It acts in the interest of the
Company.
The Board of Directors ensures that all financial and
human resources are available and ensures that all
the necessary structures are in place to achieve its
objectives and ensure long-term value creation.
The Articles of Association empower the Board of
Directors the power to perform all actions necessary
to achieve the corporate purpose.
Activity report of the Board of Directors
Number of meetings
At least two for the year-end and mid-year evaluations.
During the 2022 financial year, the Board of Directors
met 4 times.
Topics generally discussed
Periodic accounting situations;
Portfolio movements;
Inventory and valuation of the portfolio;
Evolution of significant holdings;
Management report;
Investment projects;
Corporate, social and environmental responsibility.
Average attendance rate of Directors
- 2022: 83%
- 2021: 83%
- 2020: 85%
- 2019: 71%
- 2018: 84%
4. Committees of the Board of Directors
4.1. Audit Committee
The Committee is composed of three members, of
which 2 are independents and one of them assigned
as President of the Audit Committee. The members of
the Audit Committee are appointed for one year and
are eligible for re-election. This Audit Committee is
effective as of 1
st
January 2023 and has been in charge
of the supervision of the preparation of the financial
information for the year 2022.
The Board of Directors has proposed that it will be
constituted as follows:
• Mr. Frédéric Lemaire (Independent Director)
- Chairman
• Mrs. Valérie Hortefeux (Independent member)
• Mr. Philippe Fabri (Director)
Corporate governance statement
36
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Socfinaf S.A.
The appointment of the non-executive members will
be confirmed at the General Meeting of Shareholders
on 30
th
May 2023.
The Audit Committee will assist the Board of Directors
in its supervisory function and is responsible of the
monitoring of the financial reporting, the audit
process, the analysis and control of financial risks.
The Audit Committee shall meet three times a year.
4.2. Appointment and Remuneration Committee
The remuneration of the operational management of
Socfinaf is set by the principal shareholders. The Board
of Directors does not consider it necessary to set up
a Remuneration Committee. Similarly, for practical
reasons and due to the size of the Company, the Board
of Directors has chosen not to set up a Nomination
Committee.
5. Remunerations
The remuneration allocated to the members of
the Board of Directors of Socfinaf for the financial
year 2022 amounts to EUR 356,995 compared to
EUR 863,648 for the financial year 2021.
The Directors of Socfinaf did not receive any other
payment in shares (stock options).
6. Shareholding status
On 31
st
December 2014, Socfinaf issued 1,474,200 new
shares which brings to a total of 17,854,200 number
of shares issued. All statements filed between 1
st
July
2011 and 31
st
December 2014 relate to the previous
number of shares in place and the previous number of
voting rights, i.e. 16,380,000.
At 31
st
December 2022, the share capital is represented
by 17,836,650 shares.
Shareholder
Number of shares held =
Number of voting rights Percentage holding
Date of
notification
Socfin
L-1650 Luxembourg
10,497,046 58.85 01/02/2017
Bolloré (a)
F-29500 Ergué Gaberic
80,642 0.49 (b) 03/09/2014
Compagnie du Cambodge (a)
F-92800 Puteaux
1,157,929 7.07 (b) 03/09/2014
Société Industrielle et Financière de l’Artois (a)
F-92800 Puteaux
176,636 1.08 (b) 03/09/2014
Compagnie des Glénans (a)
F-29500 Ergué Gaberic
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) = entities controlled by Vincent Bolloré.
Corporate governance statement
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(b) = before increase in share capital on 31
st
December 2014
7. Financial calendar
30
th
May 2023 Annual General Meeting at 10 a.m.
End of September 2023 Half year stand alone and consolidated results at 30
th
June 2023
Mid-November 2023 Interim Management statement for 3
rd
quarter of 2023
End of March 2024 Annual stand alone results at 31
st
December 2023
Mid-April 2024 Consolidated annual results at 31
st
December 2023
Mid-May 2024 Interim Management statement for the 1
st
quarter of 2024
28
th
May 2024 Annual General Meeting at 10 a.m.
The results of the Company are published on the website of the Luxembourg Stock Exchange www.bourse.lu
under the heading “OAM” and on the website of the Company www.socfin.com.
8. External audit
Independent statutory auditor (Réviseur d’entreprises
agréé)
Ernst & Young “EY”
35E Avenue John F. Kennedy
L-1855 Luxembourg.
In 2022, the audit fees amounted to EUR 758,845 VAT
included.
The audit fees include all fees paid to the independent
statutory auditor of the Group namely EY as well as
those paid to member firms within EY network for the
relevant years. No consulting work or other non-audit
services have been performed by this firm in 2022 or
in 2021.
9. Corporate, social and environmental responsibility
The responsible management policy is based on the
Group’s three pillars of commitment, alongside
its specific commitment to transparency: rural
development, workers and local communities, and
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
defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin
Group in this area are detailed in a regularly updated
dashboard as well as in a separate annual report
(“Sustainable Development Report”).
10. Other information
Pursuant to the Regulation 2016/347 of the European
Commission of 10
th
March 2016 specifying the
modalities for updating insider lists, a list of insiders
has been drawn up and is updated continuously.
The persons concerned have been informed of their
inclusion on this list.
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Statement of compliance
Mr. Philippe Fabri, Director and Mr. Daniel Haas, Chief
Financial Officer, indicate that, to their knowledge:
(a) the consolidated financial statements prepared
for the year ended at 31
st
December 2022, in
accordance with the International Financial
Reporting Standards as adopted by the European
Union, provide a true and fair view of the assets
and liabilities, the financial position and the
profits or losses attributable to Socfinaf and all of
the entities included in consolidation, and
(b) the management report fairly presents the
evolution and results of the Company, the financial
position of the Group and all the entities included
in the consolidation and a description of the main
risks and uncertainties they face.
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Directors’ report on the consolidated financial statements
presented by the Board of Directors to the
Annual General Meeting of the Shareholders of 30
th
May 2023
Ladies and Gentlemen,
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements at 31
st
December
2022 include the financial statements of Socfinaf, all
subsidiaries and direct and indirect associate companies,
the details of which are given in Note 2 of the notes to
the consolidated financial statements.
As stated in Note 1 of the notes to the consolidated
financial statements, the consolidated financial
statements have been prepared in accordance with
International Financial Reporting Standards or IFRS as
adopted by the European Union. Socfinaf (the Group)
adopted IFRS standards for the first time in 2005 and all
the standards applicable to the Group at 31
st
December
2022 have been implemented.
Consolidated results
For the 2022 financial year, the result attributable
to the Group of the parent company amounted to
EUR 75.6 million compared to EUR 72.0 million in 2021.
This results in earnings per share of EUR 4.24 compared
to EUR 4.04 in 2021.
Consolidated revenue amounted to EUR 637.3 million in
2022 compared to EUR 526.7 million in 2021 (increase
of EUR 110.6 million). This increase in revenue is mainly
due to the increase in prices for EUR 98.5 million and
by variation of transactional currency versus Euro for
EUR 13.0 million.
Likewise, the operating profit increased to
EUR 175.3 million, compared to EUR 142.9 million in
2021.
Other financial income amounted to EUR 8.7 million
compared to EUR 6.3 million in 2021 and consisted
mainly of foreign exchange gains of EUR 8.0 million
compared to EUR 3.7 million in 2021.
Financial expenses amounted to EUR 41.2 million
compared to EUR 22.4 million in 2021 and consisted
mainly of interest expense for EUR 15.9 million
(EUR 14.9 million in 2021) and foreign exchange losses
of EUR 24.6 million (EUR 6.9 million in 2021).
The tax expense increased. Income taxes amounted to
EUR 39.8 million compared to EUR 28.9 million in 2021.
Profit for the period from associates attributable to
the Group increased to EUR 11.3 million compared to
EUR 7.3 million in 2021.
Consolidated statement of financial position
The assets of Socfinaf consist of:
- Non-current assets of EUR 673.8 million compared
to EUR 681.6 million in 2021, a decrease of
EUR 7.8 million mainly due to the decrease of
biological assets for EUR -15.7 million and the
increase of property, plant and equipment for
EUR +7.9 million;
- Current assets amounted to EUR 229.8 million
compared to EUR 208.9 million in 2021, an increase
of EUR 20.9 million, mainly due to the increase in
the value of inventory for EUR 12.9 million and in
other receivables for EUR 12.4 million.
Shareholders’ equity amounted to EUR 384.4 million
compared to EUR 315.3 million in 2021. This increase
in shareholder’s equity of EUR 69.2 million is mainly
due to the profit for the period: EUR 75.6 million (2021:
EUR 72.0 million) and to the change in the translation
reserve for EUR -7.6 million.
On the basis of consolidated shareholders’ equity, the
net value per share attributable to the Group was
EUR 21.55 compared to EUR 17.68 a year earlier. At
31
st
December 2022, the share price stood at EUR 12.10.
Current and non-current liabilities decreased to
EUR 394.4 million compared to EUR 454.0 million a year
earlier.
Consolidated management report
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Consolidated management report
Financial debts decreased to EUR 202.7 million in
2022 compared to EUR 270.3 million in 2021. This
mainly consist of loans to Socfinaf from Socfin for
EUR 134.5 million, as well as the non current and current
portion of bank loans for an amount of EUR 62.2 million.
Deferred tax liabilities decreased to EUR 9.2 million
compared to EUR 11.4 million in 2021. Current tax
liabilities increased to EUR 40.7 million compared to
EUR 30.4 million in 2021.
Other liabilities include short-term advances from
shareholders amounting to EUR 40.4 million.
Consolidated cash flows
At 31
st
December 2022, cash and cash equivalents
amounted to EUR 52.9 million, a decrease of
EUR 3.1 million for the year compared to an increase of
EUR 24.7 million in the previous financial year.
Net cash flows from operating activities amounted
to EUR 189.5 million during the financial year 2022
(EUR 154.3 million in 2021). It resulted mainly
from self-financing capacity of EUR 208.4 million
(EUR 175.4 million in 2021), EUR 39.8 million of income
tax paid and EUR +5.3 million change in working capital.
Net cash flows from investing activities amounted to
EUR -53.4 million (EUR -61.4 million in 2021). These
activities are largely influenced by acquisitions of
tangible fixed assets amounting to EUR 55.1 million
(EUR 62.9 million in 2021).
Cash flows from financing activities amounted
EUR 138.8 million (EUR 68.7 million in 2021),
mainly due to net reimbursement of borrowings for
EUR 92.6 million (compared to a net reimbursement in
2021 for EUR 33.8 million) and to the dividends paid for
EUR 28.9 million (EUR 18.6 million in 2021).
FINANCIAL INSTRUMENTS
Financial risk management policies are described in the notes to the consolidated financial statements of the
Company (see Notes 24 and 33).
OUTLOOK 2023
The results for the next financial year will depend, to
a large extent, on factors which are external to the
Group management, namely the political and economic
conditions in the countries where the subsidiaries are
established, the changes in the price of rubber and palm
oil, and the price of the US dollar against the Euro. The
Group, for its part, pursues its policy of keeping cost
prices as low as possible and improving its production
capacity.
POLITICAL AND ECONOMIC ENVIRONMENT
The Company holds interests in subsidiaries operating
in Africa.
Given the economic and political instability in some
of the African countries (Sierra Leone, Liberia,
Côte d’Ivoire, Ghana, Nigeria, Cameroon, São Tomé
and DRC), these holdings present a risk in terms of
exposure to political and economic changes.
Russia – Ukrain conflict
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
official 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 these geopolitical tensions, there has been a
significant increase in volatility on the securities and
currency markets in 2022, as well as a significant
depreciation of the ruble against the US dollar and
the euro.
Consolidated management report
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Although neither the company’s performance and
going concern nor operations, have been significantly
impacted by the above during 2022, the Board of
Directors continues to monitor the evolving situation
and its impact on the financial position and results of
the company.
EVENTS AFTER THE CLOSING DATE
On 24
th
February 2023, Socfinaf early repaid an amount
of USD 14,750,000 i.e. EUR 13,828,989 to Socfin as a
final reimbursement of the loan in USD.
CORPORATE GOVERNANCE
The Board of Directors implements the corporate
governance rules applicable in the Grand Duchy of
Luxembourg in the Group’s financial structure and
reports.
Further information on how the rules are implemented
is available in the corporate governance statement in
the annual report and in the management report on
the Company’s stand alone financial statements.
GENERAL INTERNAL CONTROL SYSTEM ADAPTED TO THE GROUP’S SPECIFIC
ACTIVITIES
Segregation of functions
The segregation of operational, commercial and
financial functions implemented at each level of the
Group reinforces the independence of internal control.
These different functions ensure the completeness and
reliability of the information which is within their areas
of responsibility. They provide regular updates of the
completeness of information to local managers and to
the Group’s headquarters (agricultural and industrial
production, trade, human resources, finance, 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 financial
performances, the protection of their assets and
management of their risks.
This autonomy makes it possible for the entities to
be more accountable and to ensure the adequacy
between their practices and the legal framework of
their host country.
Centralised control
The Human Resources Management policy of the
top management of the entities within the Group is
centralised at the Group’s headquarters. It contributes
to the smooth running of an effective internal control
system through the independence of recruitment, the
harmonisation of the segregated functions, annual
evaluations and training programs.
The operational, commercial and financial functions
centrally define a set of standard reports which ensure
the homogeneity of the presentation of information
originating from the subsidiaries.
Treasury reporting process
The treasury department organises, supervises and
controls the reporting of daily information and weekly
indicators of the subsidiaries and, in particular, the
cash flow position, the evolution of net debt and the
expenses related to the investments.
Consolidated management report
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Financial reporting process
The financial department organises, supervises
and controls the reporting of monthly accounting,
budgetary and financial information and distributes
condensed reports for use by the Group’s operational
management.
Twice per year, it includes this information in the long-
term development plan of the subsidiaries. It also
ensures the implementation of the financial decisions
taken by the Board of Directors of the subsidiaries.
Preparation of consolidated accounts
The consolidated financial statements are prepared
on a half-yearly basis. They are audited annually by
the external auditors as part of a financial audit of
subsidiaries, which covers both the statutory accounts
of the entities in the scope of consolidation and the
consolidated financial statements.
Once approved by the Board of Directors, they are
published.
The consolidation department of the Group
guarantees homogeneity and treatment monitoring
for all companies within the scope of consolidation. It
strictly adheres to the accounting standards in force
relating to consolidation operations. It uses a standard
consolidation tool to ensure the secure processing
of information feedback from subsidiaries, the
transparency and relevance of automatic consolidation
processes and the consistency of presentation of
accounting aggregates in the annual report. Lastly,
due to the complexity of the accounting standards
in force and the many specificities related to their
implementation, the consolidation service centralises
the adjustments specific to the valuation rules
applicable to the consolidated financial statements.
ENVIRONMENT AND SOCIAL RESPONSIBILITY
The responsible management policy is based on the
Group’s three pillars of commitment, alongside
its specific commitment to transparency: rural
development, workers and local communities, and
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
defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin
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.
The Board of Directors
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Auditor’s report on the consolidated financial statements
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
To the Shareholders of
Socfinaf S.A.
4, Avenue Guillaume
L-1650 Luxembourg
Opinion
We have audited the consolidated financial statements
of Socfinaf S.A. and its subsidiaries (the “Group”),
which comprise the consolidated statement of financial
position as at 31 December 2022, and the consolidated
statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and
the notes to the consolidated financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying consolidated
financial statements give a true and fair view of the
consolidated financial position of the Group as at
31 December 2022, and of its consolidated financial
performance and consolidated cash flows for the year
then ended in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the
European Union.
Basis for opinion
We conducted our audit in accordance with EU
Regulation N° 537/2014, the Law of 23
rd
July 2016 on the
audit profession (the “Law of 23
rd
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
rd
July 2016 and ISAs are further described in the
“Responsibilities of the “réviseur d’entreprises agréé”
for the audit of the consolidated financial statements”
section of our report. We are also independent of the
Group in accordance with the International Ethics
Standards Board for Accountants’ Code of Ethics for
Professional Accountants (“IESBA Code”) as adopted
for Luxembourg by the CSSF together with the ethical
requirements that are relevant to our audit of the
consolidated financial statements, and have fulfilled
our other ethical responsibilities under those ethical
requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the consolidated financial statements of
the current period. These matters were addressed in
the context of the audit of the consolidated financial
statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on
these matters.
Valuation of biological assets
Risk identified
As at 31
st
December 2022, the value of the Group’s
biological assets amounted to EUR 350.2 million out of
total assets of EUR 903.6 million.
The Group owns biological assets in Africa. These
biological assets, which consist mainly of oil palm and
rubber plantations, are valued in accordance with
the principles defined in IAS 16 “Property, Plant and
Equipment”. These assets are recognised at cost less
accumulated depreciation and any impairment losses.
The note 8 “Impairment of assets” of the consolidated
financial statements describes the methodology used
by Group management to assess whether there is any
indicator of impairment or any indicator of impairment
reversal at the balance sheet date. When an indicator
is identified, Group management determines the
recoverable amount of the biological assets and thus
determines the impairment loss or the reversal of
impairment to be recognised, if any.
The indicators used by Group Management are:
• a decrease or an increase of the listed price of
natural rubber (TSR20 1st position on SGX) and the
listed price of crude palm oil (CIF Rotterdam) at the
balance sheet date higher than 15% compared to a
five-year average of the prices observed on those
markets
Auditor’s report on the consolidated financial statements
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• a decrease or an increase of the six-month average
of the prices observed of those markets higher than
15% compared to a five-year average of the prices
observed on those markets
• a decrease or an increase of the twelve-month
average of the prices observed of those markets of
more than 15% compared to a five-year average of
the prices observed on those markets
For palm oil, which is mainly sold on local markets,
Group Management also analyses local sales prices,
considering that a decrease or an increase in these
prices at the balance sheet date higher than 15%
compared to a five-year average value of the local
prices constitutes an indicator of impairment or an
indicator of impairment reversal respectively.
In addition to these external factors, the Group
analyses the following internal performance
indicators:
- Specificities of the local market (evolution of
supply and demand, ...);
- Physical indications of impairment;
- Significant changes in the plantations that could
have a material impact on future cash flows.
The recoverable amount is determined as the higher
of the value in use and the fair value less costs of
disposal. The value in use is defined in terms of
discounted future net cash flows and involves
significant judgements and estimations by Group
Management, including financial forecasts and the
utilization of appropriate discount rates.
We considered the valuation of biological assets to be
a key audit issue because of :
- their significance in relation to the Group’s total
assets
- the assessment of whether there is any indicator
of impairment or any indicator of impairment
reversal; and
- the determination of their recoverable amount
which involves significant judgements and
estimates.
Audit response
In order to assess the reasonableness of an indicator
of impairment or an indicator of impairment reversal
and, where appropriate, to determine the recoverable
amount of biological assets, we performed the
following audit procedures :
• Assess the compliance of Group’s management’s
methodology with the provisions of IAS 36
“Impairment of Assets”;
• Analyze the methodology used with a particular
focus on the indicators of impairment or on the
indicators of impairment reversal;
• Analyze the completeness of indicators of
impairment or indicators of impairment reversal:
- Evaluating the assessment performed by
Group management to identify the existence
of indicators of impairment or indicators of
impairment reversal by comparing the underlying
data of the analysis with the source of the data
used;
- Comparing the evolution of yields per hectare;
and
- Overseeing the audit work of the components
auditors of material subsidiaries to identify any
indicators of impairment or any indicators of
impairment reversal, including that site visits of
the plantations have been carried out;
• In case of identification of an indicator of impairment
or an indicator of impairment reversal, we:
- Assess the appropriateness of the methodology
applied by Group Management to determine
the recoverable value of the biological assets
and the accuracy of any impairment loss or any
impairment reversal recorded;
- Analyze the reasonableness of the cash flow
forecasts used by Group Management to determine
the value in use of the biological assets;
- Assess the reasonableness of the assumptions and
inputs used by Group management; and
- Reconcile the key inputs used in the model with
information audited by the components auditors
of material subsidiaries.
• Assess whether the disclosures required by IAS 36
“Impairment of Assets” for biological assets are
properly disclosed in the notes of the consolidated
financial statements.
Auditor’s report on the consolidated financial statements
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Other information
The Board of Directors is responsible for the other
information. The other information comprises the
information included in the consolidated management
report and the corporate governance statement but
does not include the consolidated financial statements
and our report of “réviseur d’entreprises agréé”
thereon.
Our opinion on the consolidated financial 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 consolidated
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we
have performed, we conclude that there is a material
misstatement of this other information, we are
required to report this fact. We have nothing to report
in this regard.
Responsibilities of the Board of Directors and
of those charged with governance for the
consolidated financial statements
The Board of Directors is responsible for the preparation
and fair presentation of the consolidated financial
statements in accordance with IFRS as adopted by the
European Union, and for such internal control as the
Board of Directors determines is necessary to enable
the preparation of consolidated financial statements
that are free from material misstatement, whether
due to fraud or error.
The Board of Directors is also responsible for
presenting the consolidated financial 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 consolidated financial statements,
the Board of Directors is responsible for assessing
the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern and using the going concern basis of
accounting unless the Board of Directors either
intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for
overseeing the Group’s financial reporting process.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the consolidated
financial statements
The objectives of our audit are to obtain reasonable
assurance about whether the consolidated financial
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
rd
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
influence the economic decisions of users taken on
the basis of these consolidated financial statements.
As part of an audit in accordance with EU Regulation
N° 537/2014, the Law of 23
rd
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 consolidated financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient 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 Group’s internal control.
Auditor’s report on the consolidated financial statements
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• 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 significant doubt on the
Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists,
we are required to draw attention in our report of
the “réviseur d’entreprises agréé” to the related
disclosures in the consolidated financial 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 Group to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and
content of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
• Assess whether the consolidated financial
statements have been prepared, in all material
respects, in compliance with the requirements laid
down in the ESEF Regulation.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
and business activities within the Group to express
an opinion on the consolidated financial statements.
We are responsible for the direction, supervision
and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies 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 significance in the audit of the
consolidated financial 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
th
May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments, is 3 years.
The consolidated management report is consistent
with the consolidated financial 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
th
December 2002 on the commercial and companies
register and on the accounting records and annual
accounts of undertakings, as amended, is consistent
with the consolidated financial statements and has
been prepared in accordance with applicable legal
requirements.
We have checked the compliance of the consolidated
financial statements of the Group as at 31
st
December
2022 with relevant statutory requirements set out
in the ESEF Regulation that are applicable to the
financial statements. For the Group, it relates to :
• Financial statements prepared in valid xHTML
format;
• The XBRL markup of the consolidated financial
statements using the core taxonomy and the
common rules on markups specified in the ESEF
Regulation.
In our opinion, the consolidated financial statements
of the Group as at 31
st
December 2022, identified as
Socfinaf 2022 Annual report.zip, have been prepared,
Auditor’s report on the consolidated financial statements
Socfinaf S.A.
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47
in all material respects, in compliance with the
requirementslaiddownintheESEFRegulation.
Weconfirmthattheauditopinionisconsistentwith
the additional report to the audit committee or
equivalent.
We confirm that the prohibited non-audit services
referred to in EU Regulation No 537/2014 were not
provided and that we remained independent of the
Groupinconductingtheaudit.
Ernst&Young
Sociétéanonyme
Cabinetderévisionagréé
AnthonyCannella
Luxembourg
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Consolidated financial statements
1. Consolidated statement of financial position
31/12/2022 31/12/2021
ASSETS Note EUR EUR
Non-Current Assets
Right-of-use assets 3 8,169,573 7,484,998
Intangible assets 4 1,449,899 1,958,916
Property, plant and equipment 5 277,533,909 269,676,822
Biological assets 6 350,244,763 365,903,978
Investments in associates 10 27,288,358 23,619,982
Financial assets at fair value through other comprehensive income 11 300,038 38
Long-term advances 1,664,769 1,745,719
Deferred tax assets 12 4,513,651 9,421,066
Other non-current assets 2,619,576 1,743,807
Current Assets
Inventories 15 105,769,814 92,844,873
Current biological assets 6 3,005,618 2,423,966
Trade receivables 16 23,519,223 28,185,332
Other receivables 17 21,440,996 8,995,522
Current tax assets 13 12,438,610 13,378,526
Cash and cash equivalents 18 63,638,033 63,091,772
TOTAL ASSETS 903,596,830 890,475,317
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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31/12/2022 31/12/2021
EQUITY AND LIABILITIES Note EUR EUR
Equity attributable to the owners of the Parent
Share capital 19 35,673,300 35,673,300
Share premium 19 87,453,866 87,453,866
Legal reserve 20 3,567,330 3,567,330
Consolidated reserves 253,235,800 180,034,758
Translation reserves -71,070,327 -63,481,543
Profit / (loss) for the period 75,584,548 72,028,965
Non-controlling interests
9 124,791,747 121,205,286
Total Equity
Non-Current Liabilities
Deferred tax liabilities 12 9,219,942 11,408,890
Employee Benefits Obligations 21 12,366,549 12,054,536
Long-term debt, net of current portion 22 159,582,281 234,679,480
Long-term lease liabilities 3 8,674,141 8,285,305
Other payables 23 6,005,420 7,401,155
Current Liabilities
Short-term debt and current portion of long-term debt 22 43,071,845 35,588,183
Short-term lease liabilities 3 1,532,064 1,105,090
Trade payables
23
Current tax liabilities 13 40,651,438 30,408,824
Provisions 622,480 337,462
Other payables 23 62,447,969 68,876,569
TOTAL EQUITY AND LIABILITIES 903,596,830 890,475,317
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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2. Consolidated income statement
2022 2021
Note EUR EUR
Revenue 32 637,341,934 526,702,437
Work performed by entity and capitalised 9,969,880 11,960,180
Change in inventories of finished products and work in progress -5,109,712 753,008
Other operational income 5,844,939 5,393,496
Raw materials and consumables used
32
-182,873,108 -145,224,395
Other expenses
32
-132,268,074 -114,534,558
Staff costs 25 -74,266,738 -69,886,384
Depreciation and impairment expense 7 -58,213,723 -55,738,718
Other operating expenses
32
-25,095,805 -16,546,165
Operating profit / (loss) 175,329,593 142,878,901
Other financial income 26 8,653,915 6,324,778
Gain on disposals 76,466 803,432
Loss on disposals -1,833,410 -3,604,256
Financial expenses 27 -41,163,373 -22,363,108
Profit / (loss) before taxes 141,063,191 124,039,747
Income tax expense 14 -39,796,407 -28,856,992
Deferred tax (expense) / income 14 -2,914,673 -718,754
Share of the Group in the result from associates 10 11,297,778 7,264,011
Profit / (loss) for the period 109,649,889 101,728,012
Profit / (loss) attributable to non-controlling interests 34,065,341 29,699,047
Profit / (loss) attributable to the owners of the Parent 75,584,548 72,028,965
Basic earnings per share undiluted 28 4.24 4.04
Number of Socfinaf shares
Basic earnings per share
Diluted earnings per share
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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3. Consolidated statement of comprehensive income
2022 2021
Note EUR EUR
Profit / (loss) for the period
Other comprehensive income
Actuarial gains / (losses) 21 902,556 2,011,089
Deferred tax on actuarial losses and gains -187,624 -568,972
Subtotal of items that cannot be reclassified to profit or loss
Gains / (losses) on exchange differences on translation of subsidiaries
-7,801,046 18,221,626
Share of other comprehensive income related to associates 443,736 296,273
Subtotal of items eligible for reclassification to profit or loss -7,357,310 18,517,899
Total other comprehensive income -6,642,378 19,960,016
Comprehensive income 103,007,511 121,688,028
Comprehensive income attributable to non-controlling interests 33,205,681 31,337,419
Comprehensive income attributable to the owners of the Parent 69,801,830 90,350,609
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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4. Consolidated statement of cash flows
2022 2021
Note EUR EUR
Operating activities
Profit / (loss) attributable to the owners of the Parent 75,584,548 72,028,965
Profit / (loss) attributable to non-controlling shareholders 34,065,341 29,699,047
Income from associates 10 -11,297,777 -7,264,009
Dividends received from associates 10 7,126,982 3,383,509
Fair value of agricultural production -5,789,099 -8,090,073
Other adjustments having no impact on cash position -1,202,239 -1,352,609
Depreciation and impairment expense 7 58,213,722 55,738,719
Provisions and allowances 7,278,229 -1,120,117
Net loss on disposals of assets 1,758,494 2,799,747
Income tax expense and deferred tax 14 42,711,079 29,575,745
Cash flows from operating activities 208,449,280 175,398,924
Interest expense 26, 27 15,590,970 14,683,522
Income tax paid 14 -39,796,406 -28,856,992
Change in inventory -8,943,177 -3,417,054
Change in trade and other receivables -13,221,521 6,878,991
Change in trade and other payables 29,213,136 -10,288,803
Change in accruals and prepayments -1,758,263 -118,044
Change in working capital requirement 5,290,175 -6,944,910
Net cash flows from operating activities 189,534,019 154,280,544
Investing activities
Acquisitions / disposals of intangible assets -32,003 -3,696
Acquisitions of property, plant and equipment and biological assets 5, 6 -55,144,750 -62,916,100
Disposals of property, plant and equipment 1,655,010 1,375,153
Acquisitions / disposals of financial assets 134,933 142,451
Net cash flows from investing activities -53,386,810 -61,402,192
Financing activities
Dividends paid to non-controlling shareholders
9
-28,941,422 -18,586,503
Proceeds from borrowings
22
Repayment of borrowings
22
-99,581,546 -56,595,266
Repayment of lease liabilities
22
-1,737,556 -1,595,202
Interest paid 26, 27 -15,590,970 -14,683,522
Net cash flows from financing activities -138,821,206 -68,682,118
Effect of exchange rate fluctuations -446,315 551,541
Net cash flows -3,120,312 24,747,775
Cash and cash equivalents at 1
st
January 18 56,062,445 31,314,670
Cash and cash equivalents at 31
st
December 18 52,942,133 56,062,445
Net increase / (decrease) in cash and cash equivalents -3,120,312 24,747,775
The accompanying notes are an integral part of these consolidated financial statements.
99,581,546
Consolidated financial statements
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5. Consolidated statement of changes in equity
EUR
Share
capital
Share
premium
Legal
reserve
Translation
reserves
Conso-
lidated
reserves
Equity
attributable
to the
owners of
the Parent
Non-
controlling
interests
TOTAL
EQUITY
Balance at 1
st
January 2021
Profit / (loss) for the period
Actuarial (losses) / gains
Foreign currency translation adjustments
Share in other comprehensive income
from associates
Other comprehensive income
Dividends
Interim dividends
Other movements
Transactions with shareholders
Balance at 31
st
December 2021
Balance at 1
st
January 2022
Profit / (loss) for the period
Actuarial (losses) / gains
Foreign currency translation adjustments
-6,846,814 0 -6,846,814 -954,232 -7,801,046
Share in other comprehensive income
from associates
Other comprehensive income
-6,846,814 76,648,644 69,801,830 33,205,681 103,007,511
Dividends
Interim dividends
Other movements (Notes 2, 9)
-741,970 107,981 -633,989 -820,987 -1,454,976
Transactions with shareholders
-741,970 107,981 -633,989 -29,619,220 -30,253,209
Balance at 31
st
December 2022
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
6. Notes to the consolidated financial statements
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Note 1. Overview and accounting policies
1.1. Overview
nd
October
1961. Its corporate purpose qualifies it as a holding company
“soparfi” since the Annual General Meeting of 10
th
January 2011.
The registered office 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
focused on the exploitation of tropical oil palm and rubber
plantations in Africa.
abbreviated as “Socfin” which is the largest entity that
consolidates. The registered office of the latter company is also
located at 4, avenue Guillaume, L-1650 in Luxembourg.
The Company is listed on the Luxembourg Stock Exchange under
ISIN code: LU0056569402 and is registered in the commercial
register under the number B6225.
1.2. Statement of compliance
The consolidated financial statements have been prepared
on a going concern basis and in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European
Union and the consolidated financial statements are presented in
On 29
th
March 2023, the Board of Directors approved the
consolidated financial statements.
In conformity with the current legislation existing in the Grand
Duchy of Luxembourg, the financial statements will be approved
by the shareholders during the Annual General Meeting. The
official version of the accounts is the ESEF version available with
the Officially Appointed Mechanism (OAM) tool.
New standards and amendments issued but not yet effective
on 1
st
January 2022:
The Group does not expect the adoption of the standards and
amendments described below to have a material impact on its
consolidated financial statements, nor anticipate early adoption
of new accounting standards, amendments and interpretations.
- On 18
th
May 2017, the IASB issued IFRS 17 “Insurance Contracts”,
which establishes principles for the recognition, measurement
and presentation of insurance contracts. Under IFRS 17,
insurance performance should be measured at its current
execution value and provide a more consistent measurement
and presentation method for all types of insurance contracts.
IFRS 17 replaces IFRS 4 “Insurance contracts” and its
interpretations. It is effective as of 1
st
January 2023 and early
adoption is permitted if IFRS 15 “Revenue from Contracts with
Customers” and IFRS 9 “Financial Instruments” have been
applied. On 9
th
December 2021, the IASB issued amendments
to IFRS 17, aimed at helping entities to avoid temporary
accounting mismatches between financial assets and insurance
contract liabilities.
- On 7
th
May 2021, the IASB published amendments to IAS 12
“Deferred Tax related to Assets and Liabilities arising from a
Single Transaction”. The amendments narrowed the scope
of the recognition exemption in paragraphs 15 and 24 of IAS
12 (recognition exemption) so that it no longer applies to
transactions that, on initial recognition, give rise to equal
taxable and deductible temporary differences. They are
effective for financial years beginning on or after 1
st
January
2023 and are to be applied retrospectively, with early adoption
permitted.
- On 12
th
February 2021, the IASB issued amendments to IAS 1, IFRS
Practice Statement 2 “Making Judgments about Materiality”
and IAS 8. The amendments are intended to assist preparers
in determining the accounting policies to be presented in their
financial 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 financial years beginning on or after
1
st
January 2023 and are to be applied prospectively, with early
adoption permitted.
New IFRS standards, amendments and interpretations not yet
endorsed by the European Union:
- On 23
rd
January 2020, the IASB published amendments to IAS 1
“Presentation of Financial Statements” on the classification of
liabilities as current and non-current in order to establish a
more general approach to the classification of liabilities under
IAS 1, based on an analysis of contracts existing at the balance
Consolidated financial statements
sheet date. The amendments include clarification
of the requirements for classifying liabilities that
a company could settle by converting them into
equity. On 15
th
July 2020, the IASB deferred the
effective date of the amendments. On 31
st
October
2022, the IASB issued “Non-current Liabilities with
Covenants” to clarify how conditions with which
an entity must comply within twelve months
after the reporting period affect the classification
of a liability. The amendments are effective for
reporting periods beginning on or after 1
st
January
2024. The Group does not expect the adoption of
these amendments to have a material impact on its
consolidated financial statements.
- On 22
nd
September 2022, the IASB issued
amendments to IFRS 16 “Lease Liability in a
Sale and Leaseback”, that clarify how a seller-
lessee subsequently measures sale and leaseback
transactions that satisfy the requirements in IFRS
15 to be accounted for a sale. The amendment does
not change the accounting for leases unrelated to
sale and leaseback transactions. The amendment
applies retrospectively to annual reporting periods
beginning on or after 1
st
January 2024, with early
adoption permitted. The Group does not expect the
adoption of these amendments to have a material
impact on its consolidated financial statements.
1.3. Presentation of the consolidated financial
statements
They are prepared on the basis of historical cost with
the exception of the following assets:
- Biological assets (current) (IAS 2, IAS 41), derivative
instruments and securities measured at fair value
through other comprehensive income are recognised
at fair value;
- Property, plant and equipment acquired as part of a
business combination (IFRS 3) are measured initially
at their fair value at the date of acquisition.
The accounting principles and rules are applied in a
consistent and permanent way within the Group. The
consolidated financial statements are prepared for
the accounting year ending 31
st
December 2022 and
are presented before the Annual General Meeting of
shareholders approving the allocation of the parent
company’s income.
At 1
st
January 2022, the Group adopted the following
amendments without any material impact on the
Group’s consolidated financial statements:
- Amendment to IFRS 3 Business Combinations -
reference to the Conceptual Framework: the
amendments updated the reference to the
Conceptual Framework for Financial Reporting,
added a reference to IAS 37 or IFRIC 21 when a
company identifies the liabilities assumed in a
business combination, and stated that an acquirer
should not recognise contingent assets acquired in a
business combination.
- Amendment IAS 16 Property, Plant and Equipment:
the amendments prohibit a company from deducting
from the cost of property, plant and equipment
amounts received from selling items produced while
the company is preparing the asset for its intended
use. Instead, a company should recognise such sales
proceeds and related cost in profit or loss.
- Amendments to IAS 37 Provisions, Contingent
Liabilities and Contingent Assets: Onerous Contracts
— Cost of Fulfilling a Contract: these amendments
specify which costs a company includes when
assessing whether a contract will be loss-making.
- Annual Improvements to IFRS Standards 2018–2020.
These amendments concern IFRS 1, IFRS 9, IFRS 16
and IAS 41:
o IFRS 1 (1
st
time adopter): allows a subsidiary to
measure translation differences using the amounts
reported by its parent, based on the parent’s date
of transition to IFRS
o IFRS 16: removal from the illustrative examples of
the illustration of the reimbursement of leasehold
improvements by the lessor
o IFRS 9: the amendment clarifies which fees an
entity includes when it applies the “10 per cent”
test in paragraph B3.3.6 of IFRS 9 in assessing
whether to derecognise a financial liability
o IAS 41: the amendment removes the requirement
in IAS 41.22 for entities to exclude taxation cash
flows when measuring the fair value of a biological
asset using a present value technique.
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Consolidated financial statements
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1.4. Consolidation principles
The consolidated financial statements include the
financial statements of the parent company Socfinaf
as well as those of the companies controlled by the
parent (“subsidiaries”) and those of the companies
in which Socfinaf has exercised significant influence
(“associates”), all of which constitute the “Group”.
All companies included in the scope of consolidation
as at 31
st
December 2022 close their accounts on
31
st
December.
a) Subsidiaries
In accordance with IFRS 10, an investor has control
when three conditions are fulfilled:
1) it holds power over the entity;
2) it is entitled to or is exposed to variable returns
from its involvement;
3) it has the ability to use its power over the entity to
affect returns.
Currently, the Group holds the majority of the voting
rights in the entities.
Income and expenses from subsidiaries acquired or
sold during the year are included in the consolidated
income statement, respectively, from the date of
acquisition to the date of disposal.
Profit or loss and each component of other
comprehensive income are attributed to the equity
holders of the parent of the Group and to the non-
controlling interests, even if this results in the non-
controlling interests having a deficit balance.
Where appropriate, restatements are made to the
financial statements of the subsidiaries to align
the accounting principles used with those of other
companies in the scope of consolidation.
All intra-group balances and transactions are
eliminated upon consolidation.
If the Group loses control over a subsidiary, it
derecognises the related assets (including goodwill),
liabilities, non-controlling interest and other
components of equity, while any residual gain or loss
is recognised in profit or loss. Any investment retained
is recognised at fair value.
b) Investments in associates and joint-ventures
An associate is a company over which the Group
exercises significant influence through its participation
in the financial and operational decisions of this
company, but over which it has no control nor joint
control. Significant influence is presumed when
the Group holds, directly or indirectly through its
subsidiaries, between 20% and 50% of the voting
rights. A joint-venture is a joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the arrangement. Joint
control is the contractually agreed sharing of control
of an arrangement (i.e. decisions require unanimous
consent of the parties sharing control).
Associates and joint-ventures are accounted for using
the equity method. Under this method, the Group’s
interest in the associates and joint-ventures is initially
recognised at cost in the statement of financial
position and subsequently adjusted to recognise the
Group’s share of movements in profit and loss and
other comprehensive income.
The statement of profit or loss reflects the Group’s
share of the results of operations of the associate or
joint-venture. Any change in other comprehensive
income of those investees is presented as part of
the Group’s other comprehensive income. Unrealised
gains and losses resulting from transactions between
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 and joint-ventures are
included in the consolidated financial statements
using the equity method from the date on which
significant influence begins until the date when this
influence ceases. The carrying amount of positive
goodwill that results from the acquisition of associates
and joint-ventures is included in the carrying amount
of the investment and is not tested for impairment
separately. An impairment test is performed if
an objective index of impairment is identified.
Impairment is recognised, if necessary, in the income
statement under the heading “Share of the Group in
the result from associates”.
The list of subsidiaries and associated companies
(including joint-ventures) of the Group is presented
in Note 2.
Consolidated financial statements
1.5. Changes in accounting policies, errors and
changes in estimates
A change in accounting policy is applied only if it meets
the requirements of a standard or interpretation
or permits more reliable and relevant information.
Changes in accounting policies are accounted for
retrospectively, except in the case of transitional
provisions specific to the standard or interpretation.
A material error, when discovered, is also adjusted
retrospectively.
Uncertainties inherent in the activity require the use
of estimates when preparing financial statements.
The estimates are based on judgments intended to
give a reasonable assessment of the latest reliable
information available. An estimate is revised to reflect
changes in circumstances, new information available
and the effects of experience.
1.6. Business combinations
IFRS 3 “Business Combinations” provides the
accounting basis for recognising business combinations
and changes in interests in subsidiaries after obtaining
control.
For each business combination, the Group elects
whether to measure the non-controlling interests in
the acquiree at fair value or at the proportionate
share of the acquiree’s identifiable net assets.
Changes in interest in a subsidiary that do not
result in loss of control are accounted for as equity
transactions.
1.7. Goodwill
Goodwill is the difference on the date of acquisition
between the fair value of the consideration given
in exchange for taking control, the value of non-
controlling interests, the fair value of previous
equity investments and the fair value of identifiable
assets and liabilities and contingent liabilities of the
acquiree.
When disposing of a subsidiary, the residual amount of
goodwill attributable to the subsidiary is included in
the calculation of the result of disposal.
1.8. Gain on a bargain purchase
Gain on a bargain purchase represents the excess of
the Group’s interest in the fair value of identifiable
assets and liabilities and the contingent liabilities of
a subsidiary or associate on the cost of acquisition on
the acquisition date.
To the extent that gain on a bargain purchase remains
after considering and reassessing the fair value of
identifiable assets and liabilities and contingent
liabilities of a subsidiary or associate, it is recognised
directly as an income in the income statement.
1.9. Foreign currency conversion
In the financial statements of Socfinaf and of each
subsidiary, transactions in foreign currency are recorded,
upon initial recognition, in the functional currency of
the company concerned by applying the exchange rate
in force on the transaction date. At closing, monetary
assets and liabilities denominated in foreign currencies
are converted on the last day of the year. Gains and
losses arising from the realisation or translation of
monetary items denominated in foreign currencies are
recorded in the income statement for the year.
On consolidation, the assets and liabilities of companies
whose accounts are held in a currency other than the
euro are translated into euros at the exchange rate
prevailing on the closing date. Income and expenses
are converted into euros at the average exchange rate
for the year. Any exchange differences are classified
as equity under “Translation reserves”. In the event
of a disposal, the translation reserves relating to the
company concerned are recognised in the income
statement for the year in which the sale occurred.
Goodwill and fair value adjustments arising on the
acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at
the closing rate.
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Consolidated financial statements
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The following exchange rates have been used for the conversion of the consolidated financial statements:
Closing rate Average rate
1 euro equals to: 31/12/2022 31/12/2021 2022 2021
Euro 1.000 1.000 1.000 1.000
CFA franc 655.957 655.957 655.957 655.957
Ghanaian cedi 9.1472 6.8025 8.4184 6.8705
Nigerian naira 478.92 467.50 445.11 471.97
Dobra of São Tomé 24.50 24.50 24.50 24.50
Congolese franc 2,151 2,265 2,103 2,351
American dollar 1.0666 1.1326 1.0479 1.1809
1.10. Intangible assets
Intangible assets are stated at their acquisition cost less
accumulated depreciation and any impairment losses.
Amortisation is applied on a straight-line basis based on
an estimate of the useful life of the asset in question.
Intangible assets are not subject to revaluation. When
the recoverable value of an asset is lower than its book
value, the latter is reduced to reflect this loss in value.
The estimated useful lives are as follows:
Patents 3 to 5 years
Other intangible assets 3 to 5 years
Software 3 to 5 years
Concessions Length of the concessions
Amortisation starts from the date of bringing the asset
into use.
Gains or losses arising on derecognition of assets
(difference between the disposal proceeds and the
carrying amount of the asset) are included in the
income statement when assets are derecognised.
1.11. Property, plant, equipment
Tangible fixed assets are recorded at their acquisition
cost less accumulated amortisation and any
impairment losses.
Property, plant and equipment in progress is carried at
cost less any identified impairment.
Depreciation is applied on a straight-line basis based
on an estimate of the useful life for each significant
component of the asset in question. When the
recoverable value of an asset is lower than its book
value, the latter is reduced to reflect this loss in value.
The estimated useful lives are as follows:
Buildings 20 to 50 years
Technical installations 3 to 20 years
Furniture, vehicles and others 3 to 20 years
Depreciation starting from the date that the assets
are brought into use.
Land is not subject to depreciation.
Gains or losses arising on derecognition of assets
(difference between the disposal proceeds and the
carrying amount of the asset) are included in the
income statement when assets are derecognised.
1.12. Bearer biological assets
The Group has biological assets in Africa. Bearer plants,
mainly consisting of palm oil and rubber plantations,
are valued by using the cost model, according to the
principles defined in IAS 16 “Tangible fixed assets”.
Biological assets at the time of harvest, in particular
for palm bunches, palm oil and rubber, are evaluated
according to the principles defined by IAS 41
“Agriculture”.
Bearer biological assets
Producer biological assets are recorded at acquisition
cost, less accumulated amortisation and any
impairment losses.
Consolidated financial statements
Depreciation is applied according to the straight-line
method based on an estimate of the useful life. When
the recoverable amount of an asset is less than its
carrying amount, the carrying amount is reduced to
reflect that impairment.
The estimated useful lives are as follows:
Bearer plants – Palm 20 to 26 years
Bearer plants - Rubber
20 to 33 years
Depreciation starting date is the date of transfer of
biological assets in production (asset being mature).
This transfer takes place in the fourth year after
palm oil tree planting and in the seventh year after
rubber tree planting. For each entity, the operating
period can be adapted according to the particular
circumstances.
Agricultural production
Agricultural production at harvest is valued at fair
value less estimated costs necessary to complete the
sale.
There are no observable data for agricultural
production (palm harvest, latex). The World Bank
publishes price forecasts for dry rubber (finished
product). These forecasts are based on the RSS3 grade
(smoked sheet) that is not produced by the Group.
Lastly, and even more so, there are no observable
prospective data relating to the Group’s agricultural
production. The price of a standard product in a
global market is not sufficiently representative of
the economic reality in which the various entities of
the Group intervene. This price cannot be used as a
reference for valuation.
As a result, each entity determines the fair value of
agricultural production based on actual market prices
obtained over the past year.
The Group considers produce that grows on mature
plantations (oil in the palm fruits and produce of
rubber) as biological assets, in accordance with IAS 41
principles. This produce is measured at fair value
until the point of harvest. Any resultant gains or losses
arising from changes in fair value are recognised in
the income statement.
1.13. 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
identified asset for a period of time in exchange for
consideration.
The Group applies a single recognition and
measurement approach for all leases, except for short-
term leases and leases of low-value assets (mainly
IT equipment), for which payments associated are
recognised as an expense in the income statement.
The Group recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.
The Group leases offices and agricultural land for
terms ranging from 1 to 99 years, as well as vehicles
and equipment for terms ranging from 1 month to
5 years.
The Group’s lease contracts are standard contracts
that do not include additional non-leasing components,
except for some vehicle lease contracts that include
a maintenance service. The Group has used the
practical expedient that allows not separating the
lease component from the non-lease component for
these contracts.
Assets and liabilities related to lease contracts are
initially measured at the present value of the fixed
payments including in-substance fixed payments less
any lease incentives receivable. Lease payments to
be made under reasonably certain extension options
are also included in the measurement of the liability.
To this purpose, management considers all facts
and circumstances that may create an incentive to
exercise a renewal option or not to exercise an early
termination option. The lease liability is remeasured
if there is a change in the lease term, in the lease
payment or in the assessment of an option to purchase
the underlying asset.
As the implicit interest rate is not known for all the
Group’s contracts, the incremental borrowing rate was
used to discount the lease payments. The incremental
borrowing rate is the rate that the lessee would have
to pay to borrow, for a similar term and with a similar
guarantee, the funds necessary to acquire an asset of
similar value to the asset under the right-of-use in a
similar economic environment.
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In determining the incremental borrowing rate, the
Group:
- where possible, uses the most recent financing
received by the lessee as a starting point, adjusted
to reflect the change in financing conditions since
the financing was received;
- uses a build-up approach starting with a risk-free
rate adjusted for credit risk for leases for entities
with no recent external financing;
- makes lease specific adjustments (such as term,
country, currency and collateral).
The discount rates used by the Group range between
1.75% and 19.9%.
Lease payments are allocated between the repayment
of the principal amount of the lease liabilities and
interest expense. Interest expense is recognised in
the income statement for the period over the term
of the lease. Right-of-use assets are depreciated on
The Group applies IAS 36 to determine whether a
right-of-use asset is impaired and recognises any
impairment loss as described in Note 8: Impairment
of assets.
1.14. Impairment of assets
Goodwill is not amortised but is tested for impairment
at least once a year and whenever there is an
indication of impairment.
In addition, at each reporting date, the Group reviews
the carrying amounts of its intangible and tangible
assets, including its organic producing assets, in order
to assess whether there is any indication that its assets
may have lost value. If there is such an indication,
the recoverable amount of the asset is estimated to
determine, if applicable, the amount of the loss or
impairment. The recoverable amount is the higher of
the fair value less costs to sell the asset and the value
in use.
The fair value of property, plant and equipment and
intangible assets is the present value of estimated
future cash flows expected from the use of an asset
or cash-generating unit. When it is not possible to
estimate the recoverable amount of an isolated asset,
the Group determines the recoverable amount of the
cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or a cash-
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
recognised as expenses in the income statement.
When an impairment loss recognised in a prior period
no longer exists or needs to be written down, the
carrying amount of the asset (cash-generating unit) is
increased to the extent of the revised estimate of its
recoverable amount. However, this increased carrying
amount may not exceed the carrying amount that
would have been determined if no impairment loss
had been recognised for the asset (cash-generating
unit) in prior years. The reversal of an impairment loss
is recognised immediately in income in the income
statement.
An impairment loss recorded on goodwill cannot be
subsequently reversed.
1.15. Inventories
Inventories are recorded at the lower of cost and net
realisable value. Cost includes direct material costs
and, if applicable, direct labour costs and directly
attributable overhead costs.
Where specific identification is not possible, the cost is
determined on the basis of the weighted average cost
method. Net realisable value is the estimated selling
price in the ordinary course of business less estimated
costs of completion and the estimated costs necessary
to complete the sale (primarily selling expenses).
Impairment or loss on inventory to net realisable value
is recognised as an expense in the period in which the
impairment or loss occurred.
As explained in Note 1.12. Bearer biological assets,
agricultural production is measured at fair value less
estimated costs necessary to make the sale.
1.16. Trade receivables
Trade receivables are valued at their nominal value and
do not bear interest. The Group applies a simplified
approach and records a provision for expected losses
over the life of the receivables. This provision for
losses is an amount that the Group considers a reliable
Consolidated financial statements
estimate of the inability of its customers to make the
required payments (refer to Note 33).
1.17. Cash and cash equivalents
This item includes cash, demand deposits, short-term
deposits of less than 3 months, as well as investments
easily convertible into a known amount of cash,
having a maturity of three months or less, and which
are subject to a negligible risk of change in value.
1.18. Financial instruments
Financial assets and liabilities are recognised in the
consolidated statement of financial position when the
Group becomes a party to the contractual provisions
of the instrument.
Financial instruments derivatives
Financial instruments derivatives are measured at fair
value at each reporting date.
The accounting treatment depends on the qualification
of the instrument concerned:
- Hedging instruments:
The Group refers to certain hedging instruments,
including foreign exchange risk and interest rate risk
derivatives, as cash flow hedges. Foreign currency
hedges related to firm commitments are accounted
for as cash flow hedges.
At the inception of the hedging relationship, the entity
prepares documentation describing the relationship
between the hedging instrument and the hedged
item as well as its risk management objectives and
strategy for performing various hedging transactions.
In addition, when the hedge is created and regularly
thereafter, the Group indicates whether the hedging
instrument is highly effective in offsetting changes
in the fair value or cash flows of the hedged item
attributable to the hedged risk.
The effective portion of changes in the fair value of
derivatives that are designated as cash flow hedges
and qualify for such designation is recognised in
other comprehensive income and accumulated in the
hedging reserve, cash flow. The gain or loss related to
the ineffective portion is recognised immediately in
profit or loss, in other gains and losses.
Amounts previously recognised in other comprehensive
income and accumulated in equity are reclassified
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-financial asset or liability, the gains and losses that
were previously recognised in other comprehensive
income and accumulated in equity are taken out of
equity to be recognised in the initial measurement of
the cost of the non-financial asset or liability.
For the periods 2021 and 2022, no hedging instruments
were used by the Group.
- Other instruments:
Changes in the fair value of derivative financial
instruments that do not qualify for hedge accounting
are recognised in the income statement when they
occur.
To hedge its exposure to certain foreign exchange
risks, the Group uses forward exchange contracts:
for the periods 2021 and 2022, forward exchange
contracts were used by the Group.
Loans and borrowings
Loans bearing interest are recorded for the amounts
given, net of direct costs of issue. Financial income is
added to the carrying amount of the instrument to the
extent that it is not received in the period in which
it occurs. Interest is calculated using the effective
interest rate method.
The Group’s business model for financial assets
management refers to the way it manages its financial
assets in order to generate cash flows. The business
model determines whether cash flows will result from
the collection of contractual cash flows, the disposal
of financial assets or both. Financial assets classified
and measured at amortised cost are held in a business
model with the objective of holding financial assets
to collect contractual cash flows. Long-term advances
and other receivables are held for the sole purpose
of collecting principal and interest. They comply with
the “Solely Payments of Principal and Interest” (SPPI)
model. They are accounted for using the amortised
cost method.
The Group applies the low credit risk simplification: at
every reporting date, the Group evaluates whether the
debt instrument is considered to have low credit risk
using all reasonable and supportable information that
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is available without undue cost or effort. In making
that evaluation, the Group reassesses the internal
credit rating of the debt instrument. In addition,
the Group considers that there has been a significant
increase in credit risk when contractual payments are
more than 30 days past due.
Interest-bearing borrowings and overdrafts are
recorded for amounts received, net of direct issue
costs, at amortised cost. Financial expenses are
recognised in income statement and are added to the
carrying amount of the instrument to the extent that
they are unpaid in the year in which they occur.
The carrying amount is a reasonable approximation of
fair value in the case of financial instruments such as
borrowings and debts with short-term maturity.
The fair value measurement of borrowings and debts
with financial institutions, other than in the short-
term, depends both on the specifics of the loans and
on current market conditions. The fair value was
calculated by discounting the expected future cash
flows at the re-estimated interest rates prevailing at
the balance sheet date over the remaining term of
repayment of the loans (Refer to Note 24).
The Group relied on the evolution of the interest
rate of the European Central Bank adjusted for the
specific risk inherent in each financial instrument, as
a reasonable benchmark for estimating the fair value
of such borrowings (see Note 24).
Financial assets designated at fair value through
OCI (equity instruments)
Upon initial recognition, the Group can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under IAS 32
Financial Instruments: Presentation and are not held
for trading. The classification is determined on an
instrument-by-instrument basis.
Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as
other income in the statement of profit or loss when
the right of payment has been established, except
when the Group benefits from such proceeds as a
recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are
not subject to impairment assessment.
The Group elected to classify irrevocably its non-
listed equity investments under this category.
Other financial assets and liabilities
Other financial assets (trade receivables, other
receivables, ...) and liabilities (trade payables, other
payables, ...) are recorded at their acquisition cost.
The fair value of other financial assets and liabilities is
estimated to be close to the carrying amount.
The receivables are valued at their nominal value
(at cost) less any write-downs covering amounts
considered as non-recoverable if the Group deems it
necessary. Impairment of assets is recognised in the
income statement under “Other operating income/
expenses”. The Group has established a provision
matrix based on its historical credit loss experience
(average default over several years), adjusted for
prospective factors specific to the debtors and the
economic environment. The carrying amount of
the asset is reduced through the use of a provision
account and the amount of the loss is recognised in
the consolidated income statement. The Board of
Directors of each subsidiary evaluates the receivables
individually. Value adjustments are determined taking
into account the local economic reality of each
country. They are reviewed at the reception of new
events and at least annually.
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
outflow of economic benefits that can be reasonably
estimated.
Restructuring provisions are recognised when
the Group has a formal and detailed plan for the
restructuring that has been notified to the affected
parties.
1.20. Pension obligations
Defined contribution plans
These plans designate the post-employment benefit
plans under which the Group pays defined contributions
to external insurance companies for certain categories
Consolidated financial statements
of employees. Payments made under these pension
plans are recognised in the income statement in the
year in which they are due.
As these plans do not generate future commitments
for the Group, they do not give rise to provisions.
Defined benefit plans
These plans refer to post-employment benefit plans
that provide additional income to certain categories
of employees for services rendered during the year
and prior years.
This guarantee of additional resources is a future
expenditure for the Group for which a commitment
is calculated by independent actuaries at the end of
each financial year.
The actuarial assumptions used to determine the
liabilities vary according to the economic conditions
prevailing in the country in which the plan is located.
The discount rates applicable to discount post-
employment benefit obligations should be determined
by reference to the market yields on high quality
corporate bonds that are appropriate to the estimated
timing of benefit payments at the balance sheet date.
The Group decided to calculate discount rates using an
economic approach for high-quality corporate bonds
corresponding to the terms of the employee benefits
in the countries concerned. In the countries where
there is no active market for such obligation, the
Group refers to the market yields (at the end of the
reporting period) of government bonds. The currency
and duration of these corporate or government bonds
must correspond to the currency and estimated
duration of the post-employment benefit obligations.
The cost of corresponding commitments is determined
using the projected unit credit method, with a
discounted value calculation at the balance sheet date
in accordance with the principles of IAS 19 “Employee
Benefits”.
All changes in the amount of defined benefit pension
obligations are recognised as they occur.
Remeasurements of defined benefit pension
obligations, including actuarial gains and losses, should
be recognised immediately in “Other comprehensive
income”.
The costs of services rendered during the period, past
service costs (plan amendment) and net interest are
recognised as an expense immediately.
The amount recognised in the statement of financial
position is the present value of the pension obligations
of the defined benefit plans adjusted for actuarial
gains and losses and less the fair value of plan assets.
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 fulfilment of the
performance obligation occur at the same time.
The point of control of the asset by the customer
depends on when the goods are made available to
the carrier or when the buyer takes possession of the
goods, depending on the delivery conditions. With
regards to the Group’s activities, the recognition
criteria are generally met:
(a) for export sales, where the time of the transfer of
deed based on the incoterms;
(b) for local sales, depending on the delivery
conditions, either when the goods leave the premises
or when the customer takes possession of the goods.
This is the moment when the Group has fulfilled its
performance obligations.
Revenues are valued at the transaction price of the
consideration received or receivable, which the
company expects to be entitled to.
The selling price is determined at the market price
and in a few cases the selling price is contractually
determined on a provisional basis, based on a reliable
estimate of the selling price. In the latter case, price
adjustments can then take place depending on the
movements between the reference price and the final
price, as recognised.
The Group considers being the principal in its revenue
arrangements, because it controls the goods sold
before transferring them to the customers.
At 31
st
December 2022, revenue from the major
Group customer accounted for approximately
EUR 247.5 million (2021: EUR 215.3 million) of total
Group revenue.
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1.22. Taxes
Current tax is the amount of tax payable or recoverable
on the profit or loss of a financial year.
Temporary differences between the book values of
assets and liabilities and their tax bases give rise to
the recognition of a deferred tax using the tax rates
whose application is provided for when reversing the
temporary differences, as adopted on the closing
date.
Deferred taxes are recognised for all temporary
differences unless the deferred tax is generated by
goodwill or by the initial recognition of an asset or
a liability that is not acquired through a business
combination and does not affect the accounting profit
or the taxable profit on the transaction date.
A deferred tax liability is recognised for all taxable
temporary differences related to investments in
subsidiaries and associates, unless the date on which
the temporary difference will be reversed can be
checked and it is likely that it will not reverse in the
foreseeable future.
A deferred tax asset is recognised to carry forward
unused tax losses and tax credits to the extent that it
is probable that future taxable profits will be available
on which these unused tax losses and tax credits can
be charged.
Deferred tax is recognised in the income statement
unless it relates to items that have been directly
recognised, either in equity or in other comprehensive
income.
1.23. Segment information
IFRS 8 “Operating Segments” requires operating
segments to be identified based on the internal
reporting analysed by the entity’s chief operating
decision-maker to assess performance and make
resource decisions for the segments.
The identification of these operational sectors follows
from the information analysed by the management
which is based on the geographic distribution of
political and economic risks and on the analysis of
individual social accounts at historical cost.
1.24. Use of estimates
For the preparation of consolidated financial
statements in accordance with IFRS, Group
management has had to make assumptions based on
its best estimates that affect the carrying amount
of assets and liabilities, information on assets and
liabilities, contingent liabilities and the carrying
amount of income and expenses recorded during
the period. Depending on the evolution of these
assumptions or different economic conditions,
the amounts that will appear in the Group’s future
consolidated financial statements may differ from
current estimates. Significant accounting policies, for
which the Group has made estimates, mainly concern
the application of IAS 19 (Note 21), IAS 41 / IAS 2
(Notes 6 and 15), IAS 16 (Note 5), IAS 36 (Notes 5, 6
and 8), IFRS 9 (Note 24) and IFRS 16 (Note 3).
In the absence of observable data within the scope of
IFRS 13, the Group makes use of a model developed to
assess the fair value of agricultural production based
on local production costs and conditions and local
sales (Refer to Note 1.12).
This method is inherently more volatile than
assessment at historical cost.
1.25. Going concern
At 31
st
December 2022, liabilities due within 12 months
(EUR 198,512,233) do not exceed assets due within
12 months (EUR 229,812,294).
1.26. Climate effect
The Group considered the potential impact of the
climate change, which may affect positively and
negatively the Group’s biological assets thus the
financial performance of the Group, the distribution
of rainfall and sunshine being the most important
factors.
The Group considered climatic events such as severe
wind or fires in the valuation of the biological assets,
however and given the actual level of knowledge,
distinguishing impacts of natural climate variations
apart from climate impacts related to anthropic
activity remain difficult.
Consolidated financial statements
The effects of the climate change on the Group’s
financial statements as at 2022 year-end remain
uncertain. The Management Board considered various
documentation in its assessment of the impact, such
as the last Intergovernmental Panel on Climate Change
(IPCC) reports, that do not link the climate change to
a negative impact on oil palm plantations.
The Management Board will continue to consider
the potential impacts of the climate change in its
judgements, and will integrate any new potential
impact if this could lead to a material change in the
Group’s financial statements.
1.27. Russia – Ukrain conflict
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
official 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 geopolitical tensions since February 2022,
there has been a significant increase in volatility on
the securities and currency markets, as well as a
significant depreciation of the ruble against the US
dollar and the euro.
Although neither the company’s performance and
going concern nor operations, have been significantly
impacted by the above during 2022, the Board of
Directors continues to monitor the evolving situation
and its impact on the financial position and results of
the company.
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Note 2. Subsidiaries and associates
% Group
Interest
% Group
Control
Consolidation
Method (*)
% Group
Interest
% Group
Control
Consolidation
Method (*)
2022 2022 2022 2021 2021 2021
AFRICA
Rubber and palm
SOCIETE DES CAOUTCHOUCS DE GRAND-BEREBY "SOGB" S.A. 63.69 73.16 FI 63.69 73.16 FI
PLANTATIONS SOCFINAF GHANA "PSG" LTD 100.00 100.00 FI 100.00 100.00 FI
OKOMU OIL PALM COMPANY PLC 66.38 66.38 FI 65.23 65.23 FI
SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU CAMEROUN
"SAFACAM" S.A.
69.05 69.05 FI 69.05 69.05 FI
SOCIETE CAMEROUNAISE DE PALMERAIES "SOCAPALM" S.A.
67.46 67.46 FI 67.46 67.46 FI
Rubber
LIBERIAN AGRICULTURAL COMPANY "LAC" 100.00 100.00 FI 100.00 100.00 FI
SALALA RUBBER CORPORATION "SRC" 100.00 100.00 FI 100.00 100.00 FI
SUD COMOË CAOUTCHOUC "SCC" S.A. 60.95 70.01 FI 60.95 70.01 FI
Palm
SOCFIN AGRICULTURAL COMPANY "SAC" LTD 93.00 93.00 FI 93.00 93.00 FI
SOCIETE DES PALMERAIES DE LA FERME SUISSE "SPFS" S.A. 67.46 100.00 FI 67.46 100.00 FI
AGRIPALMA LDA 88.00 88.00 FI 88.00 88.00 FI
BRABANTA S.A. 100.00 100.00 FI 99.80 99.80 FI
Other activities
BEREBY-FINANCES "BEFIN" S.A. 87.06 87.06 FI 87.06 87.06 FI
CAMSEEDS S.A. 67.61 100.00 FI 67.61 100.00 FI
EUROPE
Other activities
CENTRAGES S.A. 50.00 50.00 EM 50.00 50.00 EM
IMMOBILIERE DE LA PEPINIERE S.A. 50.00 50.00 EM 50.00 50.00 EM
INDUSERVICES S.A. 30.00 30.00 EM 30.00 30.00 EM
INDUSERVICES FR S.A. 50.00 50.00 EM 50.00 50.00 EM
MANAGEMENT ASSOCIATES S.A. 15.00 15.00 NC 20.00 20.00 EM
SOCIETE ANONYME FORESTIERE AGRICOLE "SAFA" S.A.S. 100.00 100.00 FI 100.00 100.00 FI
SOCFINCO S.A. 50.00 50.00 EM 50.00 50.00 EM
SOCFINCO FR S.A. 50.00 50.00 EM 50.00 50.00 EM
SOCFINDE S.A. 20.00 20.00 EM 20.00 20.00 EM
SODIMEX S.A. - - NC 50.00 50.00 EM
SODIMEX FR S.A. 50.00 50.00 EM 50.00 50.00 EM
SOGESCOL FR S.A. 50.00 50.00 EM 50.00 50.00 EM
STP INVEST S.A. 100.00 100.00 FI 100.00 100.00 FI
TERRASIA S.A. 33.28 33.28 EM 33.28 33.28 EM
(*) Consolidation method: FI: Full Integration - EM: Equity Method – NC: Not Consolidated
Consolidated financial statements
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List of subsidiaries and associated companies
* AGRIPALMA LDA is a company located on the island of São Tomé
and Principe specialised in the production of palm oil.
* BEREBY-FINANCES “BEFIN” S.A. is a holding company under
Ivorian law owning the Ivorian companies SOGB S.A. and SCC.
* BRABANTA S.A. is a company under Congolese law specialised in
the production of palm oil.
* CAMSEEDS S.A. is a company under Cameroon law specialised in
research, development and production of seeds (palm).
* CENTRAGES S.A. is a company under Belgian law providing
administrative and accounting services and owning three floors
of office space in Brussels.
* IMMOBILIERE DE LA PEPINIERE “PEPINIERE” S.A. is a company
under Belgian law owning three floors of office space in Brussels.
* INDUSERVICES S.A. is a company under Luxembourg law
whose purpose is to provide all administrative services to all
companies and organisations, including all services relating to
documentation, bookkeeping and register services, as well as
all representation, study, 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, organisations and companies, including all services
relating to documentation, bookkeeping and register services,
as well as all representation, study, consultation activities and
assistance. In addition, it provides all Group companies with
access to the common IT platform.
* LIBERIAN AGRICULTURAL COMPANY “LAC” is a company under
Liberian law specialising in the production of rubber.
* MANAGEMENT ASSOCIATES S.A. has been removed from the
consolidation scope in 2022.
* OKOMU OIL PALM COMPANY “OKOMU” PLC is a company under
Nigerian law specialised in the production of palm and rubber
products.
* PLANTATIONS SOCFINAF GHANA “PSG” LTD is a company under
Ghanaian law specialised in the production of palm and rubber
products.
* SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU CAMEROUN
“SAFACAM” S.A. is a company under Cameroon law active in the
production of palm oil and the cultivation of rubber trees.
* SALALA RUBBER CORPORATION “SRC” is a company under
Liberian law active in the cultivation of rubber trees.
* SOCIETE CAMEROUNAISE DE PALMERAIES “SOCAPALM S.A.” is
active in Cameroon in the production of palm oil and rubber
cultivation.
* SOCFIN AGRICULTURAL COMPANY “SAC” LTD is a company
located in Sierra Leone specialised in the production of palm
oil.
* SOCFIN CONSULTANT SERVICES “SOCFINCO” S.A. is a company
established in Belgium providing technical assistance,
agronomic and financial services.
* SOCFINCO FR S.A. is a Swiss company providing services, studies
and management of agro-industrial plantations.
* SOCIETE ANONYME FORESTIERE AGRICOLE “SAFA” is a company
under French law holding a stake in a plantation in Cameroon,
Safacam S.A.
* SOCFINDE S.A. is a finance holding company under Luxembourg
law.
* SOCIETE DES PALMERAIES DE LA FERME SUISSE “SPFS” S.A. is
active in Cameroon in the production, processing and marketing
of palm oil.
* SODIMEX S.A. has been removed from the consolidation scope in
2022, as it was liquidated during the period.
* SODIMEX FR S.A. is a company under Swiss law active in the
field of purchase and sale of planting material.
* SOCIETE DES CAOUTCHOUCS DE GRAND-BEREBY “SOGB” S.A. is
a company under Ivorian law specialised in the production of
palm and rubber products.
* SOGESCOL FR S.A. is a Swiss company active in the tropical
products trade.
* STP INVEST S.A. is a company under Belgian law with a stake in
Agripalma LDA.
* SUD COMOË CAOUTCHOUC “SCC” S.A. is a company under
Ivorian law whose activity is the processing and marketing of
rubber.
* TERRASIA S.A. is a company under Luxembourg law owning
office spaces.
Consolidated financial statements
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Note 3. Leases
The amounts recognised in the balance sheet related to leases are as follows:
* Right-of-use assets
EUR
Furniture,
vehicles and
other Buildings
Land and
concession of
agricultural
area Total
Gross value at 1
st
January 2021 7,337,888 535,431 7,120,294 14,993,613
Additions 988,351 136,739 197,754 1,322,844
Foreign exchange differences 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
Depreciation -1,496,461 -24,728 -153,860 -1,675,049
Foreign exchange differences -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
Gross value at 1
st
January 2022 8,334,541 672,164 7,437,970 16,444,675
Additions 2,517,377 0 58,191 2,575,568
Disposals 0 -136,602 0 -136,602
Foreign exchange differences -32,383 -39 86,597 54,175
Gross value at 31
st
December 2022 10,819,535 535,523 7,582,758 18,937,816
Accumulated depreciation at 1
st
January 2022 -6,173,227 -469,720 -2,316,736 -8,959,683
Depreciation -1,666,422 -36,367 -158,987 -1,861,776
Depreciation reversals 0 40,980 0 40,980
Foreign exchange differences 40,887 11 -28,669 12,229
Accumulated depreciation at 31
st
December 2022
-7,798,762 -465,096 -2,504,392 -10,768,250
Net book value at 31
st
December 2022 3,020,773 70,427 5,078,366 8,169,566
* Lease liabilities
31/12/2022 31/12/2021
EUR EUR
Long-term lease liabilities 8,674,141 8,285,305
Short-term lease liabilities 1,532,064 1,105,090
TOTAL
10,206,205 9,390,395
Consolidated financial statements
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The amounts recognised in the income statement in relation with the lease contracts are detailed as follows:
2022 2021
EUR EUR
Depreciation of right-of-use assets 1,861,776 1,675,049
Expenses related to short-term leases and leases of low-value assets 1,529,868 1,707,351
Interest expense (included in the financial expenses) 1,041,390 954,891
TOTAL 4,433,034
4,337,291
*
Agricultural land and concessions
The Group does not own all of the land on which its biological-based assets are planted. In general, these lands
are subject to very long-term concessions from the local public authority. These concessions are renewable.
Company
Date of initial lease or
renewal extension
Duration of the
initial lease
Area
conceded
SAC 2013/2014 50 years 18,473 ha (1)
LAC 1959 77 years 121,407 ha
SRC 1960 70 years 8,000 ha (3)
SOGB 1995 99 years 34,712 ha
PSG 2013/2016 50 years 18,304 ha
OKOMU 1986/2001/2013 92 to 99 years 33,113 ha
SOCAPALM 2000 60 years 58,063 ha
SAFACAM 2019 3 years 2,161 ha (4)
AGRIPALMA 2009 25 years 4,252 ha
(2)(5)
BRABANTA 2015/2018/2019 25 years 8,380 ha
(1) Renewable concessions for a term of 25 years
(2) Concessions renewable tacitly for periods of 25 years
(3) Extensible concessions up to 40,000 ha
(4) Safacam owns 15,529 ha
(5) Agripalma owns 665 ha
Consolidated financial statements
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Note 4. Intangible assets
EUR
Concessions
and patents Softwares
Other
intangible
assets TOTAL
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
Foreign exchange differences 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
Foreign exchange differences -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
Cost at 1
st
January 2022 2,189,580 752,312 767,672 3,709,564
Additions 0 0 32,003 32,003
Disposals 0 -348,205 -167,660 -515,865
Foreign exchange differences -556,198 1,454 -1,205 -555,949
Cost at 31
st
December 2022 1,633,382 405,561 630,810 2,669,753
Accumulated depreciation at 1
st
January 2022 -280,076 -748,249 -722,323 -1,750,648
Depreciation -35,068 -3,938 -15,628 -54,634
Depreciation reversals 0 348,480 167,660 516,140
Foreign exchange differences 69,538 -1,454 1,205 69,289
Accumulated depreciation at 31
st
December 2022 -245,606 -405,161 -569,086 -1,219,853
Net book value at 31
st
December 2022
1,387,776 400 61,724 1,449,900
Consolidated financial 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 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
Transfer
-1,051,159 13,867,215 4,565,872 2,225,091 -19,174,963 0 432,056
Foreign exchange differences
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
Depreciation reversals
10,437 634,753 249,229 3,637,700 0 0 4,532,119
Transfer
2,470 -191,384 2,768 186,146 0 0 0
Foreign exchange differences
-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
Cost at 1
st
January 2022
8,266,696 244,788,574 148,484,143 211,417,483 17,754,247 658,096 631,369,239
Additions (*)
409,617 6,398,548 15,373,975 11,600,420 12,514,036 583,322 46,879,918
Disposals
0 -1,914,426 -343,416 -7,501,440 0 0 -9,759,282
Transfer
870,068 2,235,911 7,830,695 5,329,369 -16,185,586 -314,457 -234,000
Foreign exchange differences
-178,502 1,423,572 -3,654,409 530,620 178,014 -61,378 -1,762,083
Cost at 31
st
December 2022
9,367,879 252,932,179 167,690,988 221,376,452 14,260,711 865,583 666,493,792
Accumulated depreciation at 1
st
January 2022
-1,175,572 -125,170,715 -67,367,106 -166,068,695 0 0 -359,782,088
Depreciation
-16,775 -11,632,747 -10,914,834 -11,632,864 0 0 -34,197,220
Depreciation reversals
0 1,909,317 238,877 6,463,264 0 0 8,611,458
Transfer
0 -1,736,377 0 1,736,377 0 0 0
Foreign exchange differences
-1,085 -701,941 750,838 -916,911 0 0 -869,099
Accumulated depreciation at 31
st
December 2022
-1,193,432 -137,332,463 -77,292,225 -170,418,829 0 0 -386,236,949
Accumulated impairment at 1
st
January 2022 0 0 -1,728,058 -182,271 0 0 -1,910,329
Impairment (**) 0 -409,129 -403,478 0 0 0 -812,607
Accumulated impairment at 31
st
December 2022
0 -409,129 -2,131,536 -182,271 0 0 -2,722,936
Net book value at 31
st
December 2022
8,174,447 115,190,587 88,267,227 50,775,352 14,260,711 865,583 277,533,907
(*) Additions for the period include capitalised costs.
(**) Impairment test on property, plant and equipment is disclosed in Note 8.
At 31
st
December 2022, the Group has technical installations and professional equipment pledged as guarantees for borrowings of the
Group for an amount of EUR 8.1 million (2021: EUR 11 million). Details of these guarantees are provided in Note 31.
Consolidated financial statements
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Note 6. Biological assets
Palm Rubber Others Total
EUR Mature Immature Mature Immature
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
Transfer 3,863,596 -3,777,156 36,189,869 -36,096,036 0 180,273
Foreign exchange differences 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
Depreciation reversals 433,948 0 1,629,222 0 0 2,063,170
Transfer -1,552,584 0 0 0 0 -1,552,584
Foreign exchange differences -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
Impairment reversal 5,434,846 0 0 0 0 5,434,846
Transfer 0 0 -16,480,949 16,480,949 0 0
Foreign exchange differences -1,078,246 0 -1,494,650 -806,209 0 -3,379,106
Accumulated impairment at 31
st
December 2021
-22,828,705 0 -29,622,116 -2,640,149 0 -55,090,971
Net book value at 31
st
December 2021 221,716,791 6,506,412 90,064,469 47,612,275 4,027 365,903,973
Cost at 1
st
January 2022 369,391,780 6,506,412 177,926,297 50,252,424 7,131 604,084,044
Additions (*) 0 2,839,161 0 5,425,671 0 8,264,832
Disposals -7,615,248 -521,789 -4,614,064 -1,048,276 0 -13,799,377
Transfer 3,220,779 -3,129,536 16,158,537 -16,015,781 0 233,999
Foreign exchange differences -1,387,620 -186,183 3,504,320 -130,834 0 1,799,683
Cost at 31
st
December 2022 363,609,691 5,508,065 192,975,090 38,483,204 7,131 600,583,181
Accumulated depreciation at 1
st
January 2022 -124,846,284 0 -58,239,712 0 -3,104 -183,089,100
Depreciation -15,458,723 0 -5,828,706 0 -56 -21,287,485
Depreciation reversals 7,590,069 0 4,314,350 0 0 11,904,419
Transfer -304,376 0 304,376 0 0 0
Foreign exchange differences 480,583 0 -1,182,888 0 0 -702,305
Accumulated depreciation at 31
st
December 2022
-132,538,731 0 -60,632,580 0 -3,160 -193,174,471
Accumulated impairment at 1
st
January 2022 -22,828,705 0 -29,622,116 -2,640,149 0 -55,090,970
Foreign exchange differences -761,413 0 -1,148,202 -163,369 0 -2,072,984
Accumulated impairment at 31
st
December 2022
-23,590,118 0 -30,770,318 -2,803,518 0 -57,163,954
Net book value at 31
st
December 2022 207,480,842 5,508,065 101,572,192 35,679,686 3,971 350,244,756
(*) Additions for the period include capitalised costs.
(**) Impairment test on biological assets is disclosed in Note 8.
On 31
st
December 2022, the Group has biological assets pledged as guarantees for borrowings of the Group for an amount of EUR nil
(2021: EUR 13 million). Details of these guarantees are provided in Note 31.
Accounting policy regarding current biological assets is disclosed in note 1.12.
Consolidated financial statements
Socfinaf S.A.
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Note 7. Depreciation and impairment
2022 2021
EUR EUR
Depreciation
Of intangible assets (Note 4) 54,634 303,522
Of property, plant and equipment excluding biological assets (Note 5) 34,197,220 31,974,702
Of biological assets (Note 6) 21,287,485 19,219,450
Of right-of-use assets (Note 3) 1,861,776 1,675,049
Impairment
Of property, plant and equipment excluding biological assets (Note 5) 812,607 1,910,329
Of biological assets (Note 6) 0 6,090,512
Impairment reversal
Of biological assets (Note 6) 0 -5,434,846
TOTAL 58,213,722 55,738,718
Note 8. Impairment of assets
Goodwill
Impairment tests on goodwill are performed at least
once a year to assess whether the carrying amount is
still appropriate.
Intangible and tangible assets and right-of-use
assets
At each reporting date, the Group reviews the carrying
amount of its intangible and tangible assets and right-
of-use assets in order to assess whether there is any
indication of impairment. If such indication exists,
the recoverable amount of the asset is estimated to
determine, the amount of the impairment loss.
At 31
st
December 2022, an impairment loss of
EUR 0.8 million (2021: EUR 1.9 million) was recognised
on Property, plant and equipment.
Bearer biological assets
At each reporting date, the Group assesses if there is any
indication that its biological assets may be impaired.
For this purpose, the Group assesses several indicators:
The significant and sustained decreasing trend in the
prices of natural rubber (TSR20 1
st
position on SGX)
and crude palm oil (CIF Rotterdam) was considered
an observable sign that the biological assets may have
been impaired. A decrease in these prices at reporting
date greater than 15% compared to an average of 5-year
value has been set by the Group to be an impairment
indicator.
At 31
st
December 2022, the decrease in prices does not
exceed 15% of the average price over the past 5 years
for the rubber and palm segment.
The Group considers, as well, average prices over the
six months before reporting date and average prices
over the last twelve months instead of only closing
prices to avoid seasonal fluctuations in the prices of
supply materials.
The Group reviews also the prices of palm oil observed
on local market and considers a decrease in these
prices at the closing date of more than 15% compared
to an average of values over 5 years as an impairment
indicator.
Consolidated financial statements
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Based on these criteria, for the rubber segment, the
rise in prices observed during the financial year 2022
does not exceed 15% of the average prices over the past
5 years. For the palm segment, the review of global and
local prices do not indicate any impairment indicator.
In addition to these external indicators, the Group
considers the following indicators:
- Internal performance indicators;
- Criteria relating to the local market;
- Physical indicators of impairment;
- Significant changes in plantations that could have a
material impact on their future cash flows.
The review of impairment indicators led the Group to
conclude that no sign of impairment exist during the
2022 period.
If an indication of impairment is identified, the
recoverable amount of the bearer biological assets is
determined.
Impairment tests must be performed on the smallest
identifiable group of assets which generates cash
flows independently of other assets or groups of assets
“CGU” and for which the Group prepares financial
information for the Board of Directors.
The identification of Cash Generating Units (CGUs)
depends, in particular, on:
- how the Group manages the activities of the entity;
- the way in which decisions are made with regards
to the pursuit or the disposal of its activities and;
- the existence of an active market for all or part of
the production.
The Group considers the political and country specific
risk factors while reviewing business evolution.
Therefore, companies are grouped within the CGU
country.
The recoverable amount of bearer biological assets is
determined from the calculation of value in use using
the most recent information approved by the local
management. The Group uses the discounted value
of expected net cash flows which are discounted
at a pre-tax rate. At reporting date, the financial
projection incorporates the full exploitation of the
younger bearer biological assets. The operational life
ranges between 25 and 30 years for both crops. This
period can be adapted according to the particular
circumstances for each entity.
The value in use calculation has been very sensitive
to:
- changes in the margins achieved by the entity and
- changes related to discount rates.
Changes in realised margins
Initially, the Group determines separately the
expected production of each category of bearer
biological assets within the entity over their remaining
life. This expected production is estimated on the
basis of the surface areas planted at reporting date
as well as the actual crop yield recorded during the
financial year which depends on the maturity of the
bearer biological asset. Production is then valued on
average basis of five-year of the margins achieved by
the entity in relation to agricultural activities. The
value in use of the bearer biological asset is then
obtained by discounting these cash flows. Average
margins are considered constant over the duration
of the financial projection. An indexing factor is not
considered.
At 31
st
December 2022, accumulated impairment
losses in the palm business segment amounted to
EUR 9.9 million for Brabanta, EUR 9.2 million for
Agripalma and EUR 4.5 million for SAC. For the rubber
segment, the accumulated impairment losses are
EUR 30.8 million for SRC, EUR 1.4 million for PSG and
EUR 1.4 million for Safacam (Note 6).
Consolidated financial statements
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Note 9. Non-wholly owned subsidiaries in which non-controlling interests are
significant
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
2022 2021 2022 2021
Production of palm oil and rubber
SOGB Côte d'Ivoire 36% 36% 27% 27%
OKOMU Nigeria 34% 35% 34% 35%
SAFACAM
Cameroon 31% 31% 31% 31%
SOCAPALM Cameroon 33% 33% 33% 33%
Subsidiary
Net income attributed to
non-controlling interests in
the subsidiary during the
financial period
Accumulated non-controlling
interests in the subsidiary
2022 2021 2022 2021
EUR EUR EUR EUR
SOGB 9,919,771 8,543,723 40,323,449 37,590,418
OKOMU 13,985,190 10,771,914 32,131,012 32,376,319
SAFACAM 795,546 1,205,702 14,333,451 14,704,129
SOCAPALM 5,871,789 7,290,049 27,876,194 31,143,226
Subsidiaries that hold non-controlling interests that are not significant individually 10,127,641 5,391,194
Non-controlling interests 124,791,747 121,205,286
Summary financial information concerning subsidiaries whose interests of non-controlling interests are
significant for the Group excluding intragroup eliminations
Subsidiary
Current
assets
Non-current
assets
Current
liabilities
Non-current
liabities
31/12/2021 EUR EUR EUR EUR
SOGB 47,069,842 100,818,900 36,697,511 10,223,275
OKOMU 33,527,881 106,235,499 16,119,871 39,330,460
SAFACAM 14,000,204 34,504,233 10,924,741 5,404,975
SOCAPALM 26,800,996 109,893,878 25,202,975 3,069,977
31/12/2022 EUR EUR EUR EUR
SOGB
41,259,858 98,190,002 27,675,941 6,768,082
OKOMU
28,642,085 116,727,370 19,373,135 38,262,602
SAFACAM
12,578,738 33,387,449 9,541,067 3,840,819
SOCAPALM
31,652,073 113,564,581 37,057,322 7,186,191
Consolidated financial 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
2021 EUR EUR EUR EUR
SOGB 126,645,632 22,453,119 22,453,119 2,455,221
OKOMU 79,363,158 23,976,881 23,976,881 5,234,727
SAFACAM 32,790,020 3,778,438 3,778,438 305,252
SOCAPALM 114,731,158 20,617,398 20,617,398 8,682,053
2022 EUR EUR EUR EUR
SOGB 143,125,135 23,862,820 23,862,820 5,321,013
OKOMU 133,279,823 38,962,980 38,962,980 13,683,296
SAFACAM 35,405,879 4,188,838 4,188,838 1,177,658
SOCAPALM 112,851,693 16,268,753 16,268,753 7,717,380
Net cash inflows (outflows)
Net cash
inflows
(outflows)Subsidiary
Operating
activities
Investing
activities
Financing
activities
2021 EUR EUR EUR EUR
SOGB
14,435,766 -9,570,729 -12,136,117 -7,271,080
OKOMU
49,550,771 -28,715,135 -10,902,826 9,932,810
SAFACAM
2,315,684 -2,647,396 337,688 5,976
SOCAPALM
30,591,306 -9,720,446 -30,342,263 -9,471,402
2022 EUR EUR EUR EUR
SOGB
46,841,347 -8,339,224 -31,411,643 7,090,479
OKOMU
50,558,570 -22,109,292 -37,698,943 -9,249,665
SAFACAM
8,426,402 -2,316,652 -6,346,027 -236,277
SOCAPALM
28,473,548 -10,987,793 -17,619,574 -133,819
The nature and evolution of the risks associated with the interests held by the Group in the subsidiaries remained
stable over the financial period compared to the previous year.
Consolidated financial statements
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Note 10. Investments in associates
2022 2021
EUR EUR
Value at 1
st
January 23,619,989 22,149,858
Scope exits (Note 2) -881,038 -2,274,586
Income from associates 11,297,777 7,264,009
Dividends -7,126,982 -3,383,509
Share in other comprehensive income from associates 443,737 316,401
Other movements -65,125 -452,184
Value at 31
st
December 27,288,358 23,619,989
Value of
investment in
associates
Income from
associates
Value of
investment in
associates
Income from
associates
31/12/2022 2022 31/12/2021 2021
EUR EUR EUR EUR
Centrages 3,366,997 132,473 3,434,524 241,051
Immobilière de la Pépinière 1,866,129 1,962 1,864,426 -46,822
Induservices 98,291 26,434 71,857 1,018
Induservices FR 0 -108,679 0 164,940
Management Associates 0 154,201 245,799 531,279
Socfin Green Energy 0 0 0 -641,650
Socfin Research 0 0 0 1,140,424
Socfinco 318,537 -256,646 775,183 20,607
Socfinco FR 8,639,420 5,223,770 7,364,276 3,386,981
Socfinde 1,723,552 23,464 1,700,089 120,699
Sodimex 0 389,114 153,374 1,557
Sodimex FR 2,183,194 451,950 1,890,380 227,628
Sogescol FR 8,807,489 5,249,578 5,845,483 2,106,457
Terrasia 284,748 10,156 274,591 9,841
TOTAL
27,288,358 11,297,777 23,619,982 7,264,010
Consolidated financial statements
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Total assets
Revenue
Total assets
Revenue
31/12/2022 2022 31/12/2021 2021
EUR EUR EUR EUR
Centrages 4,106,686 3,880,683 4,052,720 4,128,202
Immobilière de la Pépinière 4,019,267 591,134 3,983,909 510,366
Induservices 815,459 2,700,576 1,853,192 3,128,650
Induservices FR 6,629,460 2,937,282 6,611,187 2,779,036
Management Associates 18,854,237 3,922,498 12,567,871 3,438,858
Socfinco 1,589,976 169 2,456,705 20,569
Socfinco FR 26,442,122 30,292,559 25,583,207 25,179,023
Socfinde 57,373,319 0 38,659,255 0
Sodimex 302,203 0 306,953 0
Sodimex FR 10,279,841 21,313,415 8,634,788 14,238,890
Sogescol FR 48,532,250 411,044,829 46,421,846 371,317,721
Terrasia 624,891 33,238 593,179 33,238
TOTAL
179,569,711 476,716,383 151,724,812 424,774,553
Main data of significant associates accounted for using the equity method
Associate company Main location Main activity
Dividend
received
Dividend
received
2022 2021
EUR EUR
Socfinco Belgium Rendering of services 200,000 125,000
Socfinco FR Switzerland Rendering of services 4,000,000 1,000,000
Sodimex FR Switzerland Purchase and sale of equipment 250,000 250,000
Sogescol FR Switzerland Trade of tropical products 2,730,328 1,885,091
TOTAL 7,180,328 3,260,091
Consolidated financial statements
Socfinaf S.A.
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Summary financial information of interests held in associates - Statement of financial position
Associate company Current assets
Non-current
assets
Current
liabilities
Non-current
liabilities
31/12/2021 EUR EUR EUR EUR
Management Associates 1,424,905 11,142,966 2,868,219 7,000,000
Socfinco FR 19,608,845 5,974,362 4,970,769 5,014,035
Socfinde 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
31/12/2022 EUR EUR EUR EUR
Management Associates 1,537,121 17,317,115 9,398,157 7,000,000
Socfinco FR 22,132,936 4,309,187 6,658,770 3,351,275
Socfinde 47,411,732 9,961,587 44,937,399 6,412,830
Sodimex FR 10,245,556 34,286 5,825,789 0
Sogescol FR 47,807,127 725,123 31,698,353 0
TOTAL 129,134,472 32,347,298 98,518,468 16,764,105
Summary financial information of interests held in associates - Income statement
Associate company
Profit from
operations
Net income for
the period
Comprehensive
income for the
period
2021 EUR EUR EUR
Management Associates 262,563 262,563 262,563
Socfinco FR 6,288,105 6,288,105 6,288,105
Socfinde 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
2022 EUR EUR EUR
Management Associates -243,573 -243,573 -243,573
Socfinco FR 8,833,675 8,833,675 8,885,013
Socfinde 139,836 139,836 139,836
Sodimex FR 905,204 905,204 996,068
Sogescol FR 8,459,383 8,459,383 8,652,202
TOTAL
18,094,525 18,094,525 18,429,547
Consolidated financial statements
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Reconciliation of the financial information summarised above to the carrying amount of the investments
in the consolidated financial statements
Associate company
Net assets of the
associate
% stake held by
the Group
Other IFRS
adjustments
Value of stake held
by the Group
31/12/2021 EUR EUR EUR
Management Associates 2,699,652 20% -294,131 245,799
Socfinco FR 15,598,403 50% -434,926 7,364,276
Socfinde 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
31/12/2022 EUR EUR EUR
Management Associates 2,456,079 15% -368,412 0
Socfinco FR 16,432,078 50% 423,381 8,639,420
Socfinde 6,023,090 20% 518,934 1,723,552
Sodimex FR 4,454,053 50% -43,833 2,183,194
Sogescol FR 16,833,897 50% 390,541 8,807,489
TOTAL
46,199,197 920,611 21,353,655
There is no goodwill attributed to the above associates.
Aggregated information relating to associates that are not significant individually
2022 2021
EUR EUR
Share of profit from continued operations attributable to the Group 194,814 1,117,037
Share of other comprehensive income attributable to the Group 194,814 1,117,037
Total book value of investments in associates held by the Group 5,934,703 6,573,955
Profit after tax from discontinued operations for 2022
and 2021 are nill for all associate companies of the
Group.
The nature, extent and financial impact of the
interests held in associates by the Group, including
the nature of relationships with other investors,
remained stable over the financial period compared
to the previous year.
Consolidated financial statements
Socfinaf S.A.
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Note 11. Financial assets at fair value through other comprehensive income
2022
2021
EUR EUR
Fair value at 1
st
January
38 91,902
Disposals
0 -91,864
Transfer
300,000 0
Fair value at 31
st
December
300,038 38
EUR Cost (historical) Fair value
2022 2021 2022 2021
Financial assets at fair value through other
comprehensive income
300,038 38 300,038 38
Note 12. Deferred taxes
* Components of deferred tax assets and liabilities
31/12/2022 31/12/2021
EUR EUR
IAS 2 / IAS 41: Agricultural production -3,466,822 -2,043,880
IAS 12: Withholding Tax -3,998,436 -108,261
IAS 16: Property, plant and equipment -2,667,377 -3,761,922
IAS 19: Pension obligations 3,282,072 2,063,354
IAS 21: Translation differences 0 -40,261
IAS 37: Provisions for risks and charges 757,296 279,695
IAS 38: Formation expenses 516,392 513,556
IAS 38: Research costs 337,185 293,716
IFRS 9: Financial assets measured at fair value through other
comprehensive income
-98,386 -56,587
IFRS 16: Leases 648,482 506,903
IFRS 3: Fair value of investment property -16,580 -15,614
Others -117 381,479
Balance at 31
st
December
-4,706,291 -1,987,822
Of which deferred tax assets 4,513,652 9,421,068
Of which deferred tax liabilities -9,219,943 -11,408,890
The above deferred taxes are presented per category of deferred taxes resulting from consolidated adjustments.
They are calculated company per company and the net position between deferred tax liabilities and deferred
tax assets is presented.
Consolidated financial statements
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* Contingent tax assets and liabilities
Some of the subsidiaries have accumulated tax losses
that are limited or not over time capital allowances
limited or not over time.
Brabanta, SRC, Agripalma and Camseeds, have
unused tax losses which recoverability is uncertain of
EUR 21.4 million, EUR 20.3 million, EUR 4.6 million
and EUR 1.1 million respectively at 31
st
December
2022.
Socfinaf has unused tax losses of EUR 211.4 million.
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 losses.
Note 13. Current tax assets and liabilities
* Components of current tax assets
2022 2021
EUR EUR
Current tax assets at 1
st
January 13,378,526 12,802,007
Tax income 1,211,151 253,048
Other taxes (*) -1,710,668 -1,988,902
Taxes paid or recovered 2,333,362 1,457,303
Tax adjustments -3,022,879 460,557
Foreign exchange differences 249,118 394,513
Current tax assets at 31
st
December
12,438,610 13,378,526
* Components of current tax liabilities
2022 2021
EUR EUR
Current tax liabilities at 1
st
January 30,408,824 20,857,243
Tax expense 37,157,521 22,769,738
Other taxes (*) 23,208,381 38,170,123
Taxes paid or recovered -48,988,859 -44,998,165
Tax adjustments
-1,177,818 -6,458,667
Foreign exchange differences 43,389 68,552
Current tax liabilities at 31
st
December
40,651,438 30,408,824
(*) Other taxes are composed of taxes not enclosed in general tax expenses: VAT, withholding tax, custom tax, ...
Consolidated financial statements
Socfinaf S.A.
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Note 14. Income tax expense
* Components of the tax expense
2022 2021
EUR EUR
Current income tax expense (*)
39,796,406 28,856,992
Deferred tax expense / (income)
2,914,674 718,754
Tax expense at 31
st
December
42,711,080 29,575,746
(*) Withholding tax on dividends is presented within income tax expense.
* Components of the deferred tax (expense) / income
2022 2021
EUR EUR
IAS 19: Pension obligations -1,450,766 168,783
IAS 38: Intangible assets -13,828 615,930
IAS 2 / IAS 41: Fair value of agricultural produce 1,420,836 1,970,210
IFRS 9: Forward exchange contracts 0 99,835
IFRS 9: Fair value 44,201 0
IAS 12: Income Tax (*) 1,674,170 -1,755,604
IAS 16: Tangible assets 1,666,627 -15,338
IAS 37: Provisions for risks and charges -510,998 -296,810
IAS 21: Foreign exchange differences -40,261 55,169
IFRS 16: Leases -37,374 -18,260
Others 162,066 -105,162
Deferred tax expense / (income) at 31
st
December
2,914,673 718,753
(*) Of which impact of losses carried forward activated for EUR 3.1 million, and withholding tax for EUR -1.7 million.
Consolidated financial statements
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* Reconciliation of income tax expense
2022 2021
EUR EUR
Profit before tax from continuing operations 141,063,191 124,039,747
Nominal tax rate of the parent company 24.94% 24.94%
Nominal tax rate of subsidiaries from 1% to 33% from 1% to 33%
Income tax at nominal tax rates of subsidiaries 33,020,896 28,072,195
Unfunded taxes 61,922 -36,334
Definitively taxed income 2,222,265 2,096,157
Use of capital allowances -4,472,551 -11,555,282
Specific tax regimes in foreign countries 6,763,922 10,444,393
Non-taxable income -1,962,465 -4,545,080
Non-deductible expenses
3,975,975 5,425,363
Use of unrecognised accumulated tax losses
-1,125,940 -6,790,311
Unrecognised losses carried forward
4,104,175 5,716,643
Other tax benefits
-40,956 -91,063
Additional tax assessment
35,862 23,775
Impact of change in tax rate
113,723 819,090
Other adjustments
14,252 -3,800
Tax expense at 31
st
December
42,711,080 29,575,746
* Change of rate for the subsidiaries
Since 2021, companies listed in Cameroon are eligible for a reduced tax rate of 27.5%.
Consolidated financial statements
Socfinaf S.A.
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Note 15. Inventories
* Carrying value of inventories by category
31/12/2022 31/12/2021
EUR EUR
Raw materials 33,610,606 27,113,530
Consumables 22,944,186 18,792,579
Spare parts 32,159,246 26,307,919
Production in progress 635,495 655,035
Finished products 17,412,198 21,996,097
Down-payments and orders in progress 4,400,098 2,037,012
Gross amount (before impairment) at 31
st
December
111,161,829 96,902,172
Inventory write-downs -5,392,015 -4,057,300
Net amount at 31
st
December 105,769,814 92,844,872
* Reconciliation of inventories
2022 2021
EUR EUR
Situation at 1
st
January 96,902,172 86,001,559
Change in inventory 8,994,376 3,669,769
Fair value of agricultural products 5,115,356 5,691,697
Foreign exchange differences 149,925 1,539,147
Gross amount (before impairment) at 31
st
December 111,161,829 96,902,172
Inventory write-downs
-5,392,015 -4,057,300
Net amount at 31
st
December 105,769,814 92,844,872
* Quantity of inventory by category
31/12/2021 Raw materials
Production-in-
progress
Finished goods
Crude Palm Oil / Palm Kernel Oil (tons) 1,346 0 10,405
Rubber (tons) 30,608 0 12,595
Others (units) 0 0 2,884,630
31/12/2022 Raw materials
Production-in-
progress
Finished goods
Crude Palm Oil / Palm Kernel Oil (tons) 667 0 6,079
Rubber (tons) 33,460 0 9,931
Others (units) 0 0 2,150,187
Consolidated financial statements
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Note 16. Trade receivables (current assets)
31/12/2022 31/12/2021
EUR EUR
Trade receivables
19,073,838 23,628,781
Advances and prepayments
4,445,384 4,556,551
TOTAL
23,519,222 28,185,332
Note 17. Other receivables (current assets)
31/12/2022 31/12/2021
EUR EUR
Social security
1,017,195 1,250,009
Other receivables (*)
19,953,623 7,313,455
Accrued charges
470,178 432,058
TOTAL
21,440,996 8,995,522
(*) Other receivables include receivables linked to non-operational activities and a receivable of EUR 14.3 million (EUR 1.6 million
in 2021) relating to the cash pooling at the level of Socfinaf and its subsidiaries.
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 financial statements
31/12/2022 31/12/2021
EUR EUR
Current account
63,638,033 63,091,772
TOTAL
63,638,033 63,091,772
* Reconciliation with the cash flow statement
31/12/2022 31/12/2021
EUR EUR
Current account
63,638,033 63,091,772
Bank overdrafts (*)
-10,695,901 -7,029,326
TOTAL
52,942,132 56,062,446
(*) See also Note 22.
Consolidated financial statements
Socfinaf S.A.
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Note 19. Share capital and share premium
Issued and fully paid capital amounted to
EUR 35.7 million at 31
st
December 2022 (stable
compared to 2021). There is a share premium of
EUR 87.5 million added to the issued capital.
At 31
st
December 2022, the share capital is represented
by 17,836,650 shares with no designation of par value.
Ordinary shares
31/12/2022 31/12/2021
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 accordance with Luxembourg commercial law, the
Company is required to allocate a minimum of 5% of
its net profit for each financial 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 financial statements
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Note 21. Pension obligations
* Defined benefit pension plan and post-employment sickness
Besides the legislation on social security applicable locally, most
of the employees of the Group in Africa benefit from a defined
benefit pension plan. The subsidiaries pay benefits in the event
of retirement and depending on countries in case of dismissal.
The benefits 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 benefits payable to the staff of the Cameroonian subsidiary
Socapalm are financed by assets that include insurance contracts
whose price is not quoted on active markets.
2022
EUR
2021
EUR
Present
value of
obligations
Fair value of
the benefit
plans
Net
amount
recognised
Present
value of
obligations
Fair value of
the benefit
plans
Net
amount
recognised
Assets and liabilities recognised in
the statement of financial position
Present value of obligations 13,689,169 -1,322,634 12,366,535 13,768,201 -1,713,679 12,054,522
Net amount recognised in the statement of
financial position for defined benefit plans
13,689,169 -1,322,634 12,366,535 13,768,201 -1,713,679 12,054,522
Components of net charge
Current service costs 855,755 0 855,755 887,817 0 887,817
Financial costs 1,061,814 23,422 1,085,236 866,521 23,257 889,778
Interest income on plan assets 0 -116,216 -116,216 0 -106,422 -106,422
Defined benefit plan costs 1,917,569 -92,794 1,824,775 1,754,338 -83,165 1,671,173
Movements in liabilities / net assets
recognised in the statement of financial
position
At 1
st
January 13,768,201 -1,713,679 12,054,521 14,593,998 -1,382,636 13,211,362
Costs as per income statement 1,917,569 -92,794 1,824,775 1,754,338 -83,165 1,671,173
Contributions by employer -900,012 -669,194 -1,569,206 -462,666 -664,485 -1,127,151
Costs of services rendered -223,676 223,676 0 -273,567 273,567 0
Actuarial gains and losses of the year recognised
in other comprehensive income
-954,436 51,880 -902,556 -2,062,162 51,073 -2,011,089
Reclassification of net asset 0 877,478 877,478 0 91,967 91,967
Foreign exchange differences 81,522 0 81,522 218,259 0 218,259
At 31
st
December 13,689,168 -1,322,634 12,366,534 13,768,201 -1,713,679 12,054,521
Provisions are based on actuarial valuation reports prepared in January 2023.
Consolidated financial statements
Socfinaf S.A.
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* Actuarial gains and losses recognised in other comprehensive income
2022
EUR
2021
EUR
Present
value of
obligations
Fair value of
the benefit
plans
Net
amount
recognised
Present
value of
obligations
Fair value of
the benefit
plans
Net
amount
recognised
Adjustments of liabilities related to experience -269,868 0 -269,868 139,152 0 139,152
Changes in financial assumptions related to
recognised liabilities
1,445,002 0 1,445,002 2,229,828 0 2,229,828
Changes in demographic assumptions related to
recognised liabilities
-220,698 0 -220,698 -306,816 0 -306,816
Return on assets in the plan excl. interest income 0 -51,880 -51,880 0 -51,073 -51,073
Actuarial gains and losses recognised during
the period in other comprehensive income
954,436 -51,880 902,556 2,062,164 -51,073 2,011,091
* Actuarial valuation assumptions
31/12/2022 31/12/2021
AFRICA
Average discount rate
from 4.93% to 18.48% from 2.63% to 12.61%
Expected long-term returns of plan assets
170,158 N/A
Future salary increases
from 1.74% to 12% from 1.74% to 12%
Average remaining active life of employees (in years)
19.34 19.50
* Sensitivity analyses of the present value of defined benefit obligations
31/12/2022 31/12/2021
EUR EUR
Actuarial value of the obligation
- Pension plan 13,689,169 13,768,201
- Fair value of plan assets -1,322,634 -1,713,679
Total at 31
st
December 12,366,535 12,054,522
Actuarial rate (on pension plan)
Increase of 0.5% 13,285,487 13,316,089
Decrease of 0.5% 14,093,019 14,228,460
Expected future salary increases (on pension plan)
Increase of 0.5% 14,067,916 14,197,217
Decrease of 0.5% 13,306,104 13,341,712
The sensitivity analysis is based on the same actuarial method used to measure the obligations of the defined benefit plans.
Consolidated financial statements
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* Impact of the defined benefit pension plan on future cash flows
2023 2022
Estimated contributions for the next financial year (in euros)
1,810,894 1,394,835
2022 2021
Weighted average duration of defined benefit plan obligations (in years)
6.2 6.7
* Pension scheme with defined benefit obligations
2022 2021
EUR EUR
Accounted expense for the defined contribution pension plan
1,049,949 643,632
Note 22. Financial debts
31/12/2021
EUR < 1 year > 1 year TOTAL
Loans held by financial 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
Bank overdrafts (**) 7,029,326 0 7,029,326
TOTAL 36,693,272 242,964,786 279,658,058
31/12/2022
EUR < 1 year > 1 year TOTAL
Loans held by financial institutions 16,872,593 34,606,124 51,478,717
Lease liabilities 1,532,064 8,674,142 10,206,206
Other loans (*) 15,503,351 124,976,156 140,479,507
Bank overdrafts (**) 10,695,901 0 10,695,901
TOTAL 44,603,909 168,256,422 212,860,331
(*) This balance includes an amount of EUR 134.5 million payable to Socfin (2021: EUR 196.5 million). See note 30.
(**) See also Note 18.
Most of the consolidated borrowings are denominated in Euros or CFA francs (whose parity is linked to the Euro).
The fixed interest rates from financial institutions and which are pegged to the Euro vary between 5.00% and 7.09%.
As explained in Note 33, interest rate management is the subject of ongoing management attention.
The Group is in compliance with covenants related to amounts owed to credit institutions.
Consolidated financial statements
Socfinaf S.A.
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* Analysis of long-term debt by interest rate
31/12/2021
EUR Fixed Rate Rate Floating rate Rate TOTAL
Loans held by financial institutions
Côte d'Ivoire 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-months
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
31/12/2022
EUR Fixed Rate Rate Floating rate Rate TOTAL
Loans held by financial institutions
Côte d'Ivoire 2,647,567 5.50% to 6.50% 0 - 2,647,567
Nigeria 17,197,310 5.00% to 10.00% 0 - 17,197,310
Liberia 1,699,592 7.60% 0 - 1,699,592
Cameroon 8,186,656 5.00% to 7.09% 0 - 8,186,656
Ghana 4,874,999 4.00% 0 - 4,874,999
34,606,124 0 34,606,124
Other loans
Europe
120,000,000 4.25% 0 - 120,000,000
Sierra Leone 4,976,157 3.00% 0 - 4,976,157
124,976,157 0 124,976,157
TOTAL 159,582,281 0 159,582,281
Consolidated financial statements
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* Long-term debt analysis by currency
31/12/2021 EUR C FA NGN STN USD GHS CDF TOTAL EUR
Loans held by financial 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
31/12/2022 EUR C FA NGN STN USD GHS CDF TOTAL EUR
Loans held by financial institutions 4,874,999 10,834,222 17,197,310 0 1,699,592 0 0 34,606,123
Other loans 120,000,000 0 0 0 4,976,156 0 0 124,976,156
Lease liabilities 0 6,901,010 65,318 268,436 1,364,985 35,690 38,702 8,674,141
TOTAL
124,874,999 17,735,232 17,262,628 268,436 8,040,733 35,690 38,702 168,256,420
* Long-term debt analysis by maturity
31/12/2021
EUR 2023 2024 2025 2026 2027 and above TOTAL
Loans held by financial 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 9,719,243 (*) 9,719,243 (*) 9,719,243 (*) 196,183,178 (*) 5,925,115 231,266,022
TOTAL 27,049,910 20,385,280 15,266,663 199,958,688 19,181,216 281,841,757
(*) those amounts correspond to the interests and capital to be repaid on the EUR 120 million and USD 74.8 million long-term loans,
disclosed in Note 30.
31/12/2022
EUR 2024 2025 2026 2027 2028 and above TOTAL
Loans held by financial institutions 13,888,998 7,702,455 4,539,071 3,950,392 4,525,209 34,606,125
Lease liabilities 1,220,841 606,192 278,971 73,687 6,494,450 8,674,141
Other loans 5,100,000 (*) 5,100,000 (*) 125,100,000 (*) 0 4,976,156 140,276,156
TOTAL 20,209,839 13,408,647 129,918,042 4,024,079 15,995,815 183,556,422
(*) those amounts correspond to the interests and capital to be repaid on the EUR 120 million long-term loan, disclosed in Note 30.
Consolidated financial statements
Socfinaf S.A.
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* Net cash surplus / (net debt)
31/12/2022 31/12/2021
EUR EUR
Cash and cash equivalents
63,638,033 63,091,772
Long-term debt net of current portion
-159,582,280 -234,679,480
Short-term debt and current portion of long-term debt
-43,071,844 -35,588,183
Lease liabilities
-10,206,207 -9,390,396
Net debt
-149,222,298 -216,566,287
Cash and cash equivalents
63,638,033 63,091,772
Loan bearing interest at a fixed rate
-188,042,341 -193,747,432
Loan bearing interest at a variable rate
-14,611,784 -76,520,231
Lease liabilities
-10,206,207 -9,390,396
Net debt
-149,222,298 -216,566,287
* Reconciliation of net cash surplus / (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 2021 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 flows 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
Cash flows 992,576 66,189,365 21,018,464 1,737,556 89,937,961
Foreign exchange differences -446,314 1,813,057 1,020,847 -78,293 2,309,297
Transfers 0 17,174,509 -29,522,972 0 -12,348,463
Other movements with no impact on cash flows 0 -10,079,732 0 -2,475,073 -12,554,805
At 31
st
December 2022 63,638,032 -159,582,277 -43,071,847 -10,206,202 -149,222,294
Consolidated financial statements
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Note 23. Trade and other payables
31/12/2022 31/12/2021
EUR EUR
Non-current other payables
6,005,421 7,401,156
Trade creditors: suppliers
42,111,681 34,257,187
Advances received and invoices to be received
8,074,757 9,590,674
Subtotal trade payables
50,186,438 43,847,861
Staff cost liabilities
5,102,003 5,201,155
Other payables (*)
48,178,657 51,170,778
Accruals (**)
9,167,312 12,504,635
Subtotal current other payables
62,447,972 68,876,568
TOTAL
118,639,831 120,125,585
Non-current liabilities
6,005,421 7,401,156
Current liabilities
112,634,410 112,724,429
(*) Other payables consist mainly of shareholder loans amounting to EUR 40.4 million (EUR 40.4 million in 2021) as well as debt
of EUR 0.3 million (EUR 2.2 million in 2021) relating to the cash pooling at the level of Socfinaf. See also Note 30.
(**) This amount includes Okomu grant part of the loans, for EUR 6.2 million (2021: EUR 8.1 million).
Consolidated financial statements
Socfinaf S.A.
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Note 24. Financial instruments
31/12/2021
Loans and
borrowings
Financial
assets at
fair value
through other
comprehensive
income
Other financial
assets and
liabilities TOTAL
Loans and
borrowings (*)
Other financial
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
Other non-current liabilities 0 0 7,401,156 7,401,156 0 7,401,156
Short-term debts (**) 28,558,856 0 7,029,327 35,588,183 28,558,856 7,029,327
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 263,238,336 0 127,154,912 390,393,248 263,241,817 127,154,912
(*) For information purposes.
(**) See note 22.
31/12/2021 Fair Value
EUR Level 1 Level 2 Level 3 TOTAL
Financial assets at fair value through other
comprehensive income
0 0 38 38
Consolidated financial statements
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31/12/2022
Loans and
borrowings
Financial
assets at
fair value
through
other com-
prehensive
income
Other
financial
assets and
liabilities TOTAL
Loans and
borrowings
(*)
Other
financial
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
0 300,038 0 300,038 0 0
Long-term advances 1,231,712 0 433,058 1,664,770 1,231,712 433,058
Other non-current assets 0 0 2,619,576 2,619,576 0 2,619,576
Trade receivables 0 0 23,519,222 23,519,222 0 23,519,222
Other receivables 0 0 21,440,996 21,440,996 0 21,440,996
Cash and cash equivalents 0 0 63,638,033 63,638,033 0 63,638,033
Total Assets
1,231,712 300,038 111,650,885 113,182,635 1,231,712 111,650,885
Liabilities
Long-term debts (**)
159,582,280 0 0 159,582,280 159,078,419 0
Other non-current liabilities 0 0 6,005,421 6,005,421 0 6,005,421
Short-term debts (**) 32,375,944 0 10,695,900 43,071,844 32,375,944 10,695,900
Trade payables (current) 0 0 50,186,438 50,186,438 0 50,186,438
Other payables (current) (**) 0 0 77,059,462 77,059,462 0 77,059,462
Total Liabilities 191,958,224 0 129,335,730 321,293,954 191,454,363 129,335,730
(*) For information purposes.
(**) See note 22.
31/12/2022 Fair Value
EUR Level 1 Level 2 Level 3 TOTAL
Financial assets at fair value through other
comprehensive income
0 0 300,038 300,038
The Group did not identify significant differences between the carrying amount of the loans and their fair value.
Consolidated financial statements
Socfinaf S.A.
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Note 25. Staff costs and average number of staff
2022 2021
Staff costs EUR EUR
Remuneration
67,210,544 62,844,015
Social security and pension expenses
7,056,194 7,042,368
TOTAL
74,266,738 69,886,383
Average number of employees 2022 2021
Directors
106 107
Employees
4,534 3,870
Workers (including temporary workers)
20,813 20,619
TOTAL
25,453 24,596
Note 26. Other financial income
2022 2021
EUR EUR
Interest from receivables and cash and cash equivalents
346,457 257,883
Exchange gains 8,040,379 3,681,686
Others
267,079 2,385,209
TOTAL 8,653,915 6,324,778
Note 27. Financial expenses
2022 2021
EUR EUR
Interest and finance expense
14,896,038 13,986,514
Interest expense on lease liabilities 1,041,390 954,891
Exchange losses 24,584,287 6,859,672
Others
641,659 562,031
TOTAL 41,163,374 22,363,108
Consolidated financial statements
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Note 28. Net earnings per share
The undiluted net earnings per share (basic) is the
profit 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.
2022 2021
Net profit / (loss) for the period (in euros) 75,584,548 72,028,965
Average number of shares 17,836,650 17,836,650
Net earnings per share undiluted (in euros) 4.24 4.04
Note 29. Dividends and Directors’ fees
The Board will propose to the Annual General Meeting of 30
th
May 2023 not to pay any dividend.
2022 2021
Dividends and interim dividends distributed during the period 0 0
Number of shares 17,836,650 17,836,650
Dividend per share distributed during the period 0.00 0.00
Consolidated financial statements
Socfinaf S.A.
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Note 30. Information on related party
* Directors’ remuneration
2022 2021
EUR EUR
Short-term benefits 356,995 863,648
* Other related party transactions
31/12/2021
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 (Note 17)
0 2,233,336 5,636 2,238,972
0 23,658,169 12,234 23,670,403
Non-current liabilities
Financial debts (Note 22)
186,463,934 5,925,115 0 192,389,049
186,463,934 5,925,115 0 192,389,049
Current liabilities
Financial debts (Note 22) 10,056,296 15,780 0 10,072,076
Trade payables
0 13,718,264 39,713 13,757,977
Other payables (Note 23)
0 7,310,533 40,404,934 47,715,467
10,056,296 21,044,577 40,444,647 71,545,519
Income statement
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
Consolidated financial statements
100
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31/12/2022
EUR Parent Associates
Other related
parties TOTAL
Non-current assets
Long-term advances
0 130,000 280,000 410,000
0 130,000 280,000 410,000
Current assets
Trade receivables
0 14,712,028 0 14,712,028
Other receivables (Note 17)
0 15,122,089 7,464 15,129,553
0 29,834,117 7,464 29,841,581
Non-current liabilities
Financial debts (Note 22)
120,000,000 4,976,156 0 124,976,156
120,000,000 4,976,156 0 124,976,156
Current liabilities
Financial debts (Note 22)
14,611,491 292 0 14,611,783
Trade payables
0 15,503,605 71,063 15,574,668
Other payables (Note 23)
0 3,159,945 40,406,140 43,566,085
14,611,491 18,663,842 40,477,203 73,752,536
Income statement
Services and goods delivered
0 247,471,984 0 247,471,984
Services and goods received
0 45,273,521 681,422 45,954,943
Financial income
0 69,462 0 69,462
Financial expenses
8,835,902 520,375 1,600,000 10,956,277
Related party transactions are carried out at arm’s
length.
Other related party transactions are carried out
with Bolloré Participations and Palmboomen Cultuur
Maatschappij (Mopoli).
Mopoli is a Dutch company which is majority owned
by Mr Hubert Fabri through Financière Privée, which
also owns Socfin.
Bolloré Participations is a shareholder and director of
Socfinaf.
In 2014, Socfinaf 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 2022
is EUR 0.8 million. At 31
st
December 2022, the
outstanding balance amounts to EUR 20.2 million and
is repayable on demand with final maturity on July
2024.
In 2016, Socfinaf 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 2022 is EUR 0.8 million. At 31
st
December 2022,
the outstanding balance amounts to EUR 20.2 million
and is repayable on demand with final maturity on
June 2024.
Socfinaf did not pay any dividend in 2022 to its parent
company Socfin (2021: nil). Socfinaf has borrowed
an amount of EUR 120.0 million from Socfin (2021:
EUR 120.7 million and USD 75.8 million). Annual
interests at rate of 4.25% is payable on this loan. As
such, Socfinaf has paid an interest of EUR 8.8 million
in 2022 compared to EUR 6.3 million in 2021.
Consolidated financial statements
Socfinaf S.A.
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Note 31. Off balance sheet commitments
In 2019, a subsidiary of Socfinaf, Okomu Oil Palm
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 2022, the balance of the
loan amounts to EUR 15 million (2021: EUR 14 million).
In 2019, a subsidiary of Socfinaf, Plantations Socfinaf
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 2022,
the balance of the loan amounts to EUR 8.1 million
(2021: EUR 11.4 million) and the overdraft to nil
(2020: nil).
In 2021, a subsidiary of Socfinaf, Okomu Oil Palm
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 2022, the balance of the
loan amounts to EUR 3 million (2021: EUR 3 million).
Consolidated financial statements
102
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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, Côte
d’Ivoire, Ghana, Nigeria, Cameroon, São Tomé and
Principe and Congo (DRC).
Products from the Côte d’Ivoire, 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 profit
from operations.
The stated figures 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 financial position and
income statement.
* Segmental breakdown of profit / (loss) at 31
st
December 2021
EUR
Revenue from
ordinary business
with external
customers
Revenue from
ordinary business
between segments
Segmental
profit / (loss) (*)
Europe 0 0 -3,136,523
Sierra Leone 46,760,015 0 19,240,229
Liberia 36,783,462 0 5,538,511
Côte d'Ivoire 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 Profit / (loss) for the period
101,728,012
(*) Profit / (loss) for the period include operating expenses.
Consolidated financial statements
Socfinaf S.A.
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* Segmental breakdown of profit / (loss) at 31
st
December 2022
EUR
Revenue from
ordinary business
with external
customers
Revenue from
ordinary business
between segments
Segmental
profit / (loss) (*)
Europe
0 0 -2,823,953
Sierra Leone
58,553,604 0 21,826,293
Liberia
40,756,657 0 1,747,945
Côte d'Ivoire
200,451,040 136,882 38,224,054
Ghana
33,083,346 0 18,234,769
Nigeria
133,279,822 0 56,251,979
Cameroon
147,069,445 0 34,187,590
São Tomé and Principe
7,781,775 0 779,099
Congo (DRC)
16,366,246 0 -398,915
TOTAL
637,341,934 136,882 168,028,860
Elimination of revenue from intra-group activities -136,882
Depreciation, amortisation and impairment of bearer plants -2,822,669
Fair value of agricultural production 5,789,099
Other IFRS adjustments 98,142
Consolidation adjustments (intra-group and others) 4,373,045
Financial income 8,730,381
Financial expenses -42,996,783
Group share of income from associates 11,297,778
Income tax expense -42,711,080
Net Profit / (loss) for the period 109,649,891
(*) Profit / (loss) for the period include other expenses for EUR 132.3 million, corresponding mainly to external services
invoiced to plantations and related directly to the operational activity (road maintenance, …), and other operating expenses
for EUR 25.1 million not related directly to the operational activity (other taxes, property taxes, …).
Consolidated financial statements
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* Total segmental assets
31/12/2022 31/12/2021
EUR EUR
Europe 2,063,733 10,019,752
Sierra Leone 128,721,882 132,030,565
Liberia 121,732,913 115,585,545
Côte d'Ivoire 166,346,688 170,140,614
Ghana 57,837,090 78,724,410
Nigeria 145,216,147 139,257,028
Cameroon 184,081,225 175,101,980
São Tomé and Principe 28,111,519 27,822,826
Congo (DRC) 68,260,622 68,664,450
Total at 31
st
December 902,371,819 917,347,171
IFRS 3 / IAS 16: Bearer plants -25,692,506 -23,504,111
IAS 2 / IAS 41: Agricultural production 11,304,647 6,128,867
Other IFRS adjustments -7,621,916 -5,870,896
Consolidation adjustments (intra-group and others) -55,200,786 -70,015,375
Total consolidated segmental assets 825,161,258 824,085,657
Consolidated assets not included in segmental assets
Right-of-use assets 8,169,574 7,484,998
Investments in associates 27,288,358 23,619,982
Financial assets at fair value through other comprehensive income 300,038 38
Long-term advances 1,664,770 1,745,720
Deferred tax 4,513,652 9,421,068
Other non-current assets 2,619,576 1,743,807
Consolidated non-current assets 44,555,968 44,015,612
Other debtors 21,440,996 8,995,522
Current tax assets 12,438,610 13,378,526
Consolidated current assets 33,879,606 22,374,048
Total of consolidated assets in the segmental assets 78,435,573 66,389,660
Total assets 903,596,831 890,475,316
Segmental 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
fixed assets, biological assets, trade receivables,
inventories, cash and cash equivalents.
Consolidated financial statements
Socfinaf S.A.
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* Total segmental liabilities
31/12/2022 31/12/2021
EUR EUR
Europe 55,702,251 42,790,016
Sierra Leone 3,426,717 1,538,755
Liberia 13,882,723 15,247,453
Côte d'Ivoire 22,364,064 17,484,516
Ghana 1,066,056 972,502
Nigeria 6,950,565 9,223,850
Cameroon 20,840,351 25,172,132
São Tomé and Principe 3,492,126 3,468,418
Congo (DRC) 1,045,995 3,650,948
Total at 31
st
December 128,770,849 119,548,589
Other IFRS adjustments 104,157 48,895
Consolidation adjustments (intra-group and others) -16,240,597 -6,873,055
Total consolidated segmental liabilities 112,634,409 112,724,429
Consolidated liabilities not included in segmental liabilities
Total equity 509,236,261 436,481,961
Non-current liabilities 195,848,335 273,829,367
Current financial debts 43,071,844 35,588,183
Current lease liabilities 1,532,064 1,105,090
Current tax liabilities 40,651,438 30,408,824
Provisions 622,480 337,462
Total consolidated liabilities not included in segmental liabilities 790,962,422 777,750,887
Total equity and liabilities 903,596,831 890,475,316
The segmental liabilities include trade payables and other payables.
Consolidated financial statements
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* 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
Côte d'Ivoire 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 and 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
* Costs incurred for acquisition of segmental assets during 2022
EUR Intangible assets Tangible assets Biological assets TOTAL
Sierra Leone 0 2,125,221 0 2,125,221
Liberia 0 2,197,106 898,587 3,095,694
Côte d'Ivoire 32,003 5,966,349 3,393,844 9,392,196
Ghana 0 2,277,025 0 2,277,025
Nigeria 0 22,269,520 827,710 23,097,230
Cameroon 0 10,862,418 3,144,690 14,007,108
São Tomé and Principe 0 275,584 0 275,584
Congo (DRC) 0 906,694 0 906,694
TOTAL 32,003 46,879,918 8,264,832 55,176,752
* Information by sector of activity
Revenue from external customers:
2022 2021
EUR EUR
Palm 408,462,769 327,502,389
Rubber 222,252,985 195,905,903
Other agricultural activities 469,211 657,341
Others 6,156,969 2,636,805
TOTAL 637,341,934 526,702,437
Consolidated financial statements
Socfinaf S.A.
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* Information by geographical region
Revenue from external customers by origin of the customers and geographical location:
EUR 2021
Geographical
location
Origin Europe
Côte
d’Ivoire 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
Côte d’Ivoire 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
EUR 2022
Geographical
location
Origin Europe Liberia
Côte
d’Ivoire Nigeria Cameroon Congo
Sierra
Leone
Other
African
countries
Rest of the
world TOTAL
Sierra Leone 3,356,599 0 0 0 0 0 55,197,004 0 0 58,553,603
Liberia 40,635,339 121,318 0 0 0 0 0 0 0 40,756,657
Côte d’Ivoire 130,232,762 0 31,878,695 0 0 0 0 2,350,374 35,989,209 200,451,040
Ghana 0 0 0 0 0 0 0 33,083,346 0 33,083,346
Nigeria 0 0 0 133,279,822 0 0 0 0 0 133,279,822
Cameroon 15,688,005 0 0 412,650 130,968,790 0 0 0 0 147,069,445
São Tomé and
Principe
7,196,400 0 0 0 205,800 0 0 379,575 0 7,781,775
Congo (DRC) 0 0 0 0 0 16,366,246 0 0 0 16,366,246
TOTAL
197,109,105 121,318 31,878,695 133,692,472 131,174,590 16,366,246 55,197,004 35,813,294 35,989,209 637,341,934
Consolidated financial statements
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* Information by business segment and revenue category
Revenue from external customers by business segment and geographic area:
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
Côte d'Ivoire 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
EUR 2022
Category
Business
Segment Palm Rubber
Other agricultural
products TOTAL
Sierra Leone 58,553,604 0 0 58,553,604
Liberia 0 40,635,339 121,318 40,756,657
Côte d'Ivoire 39,919,401 157,537,222 2,994,417 200,451,040
Ghana 31,991,119 968,476 123,751 33,083,346
Nigeria 120,757,226 12,346,955 175,641 133,279,822
Cameroon 133,093,402 10,764,990 3,211,053 147,069,445
São Tomé and Principe 7,781,775 0 0 7,781,775
Congo (DRC) 16,366,246 0 0 16,366,246
TOTAL
408,462,773 222,252,981 6,626,180 637,341,934
Consolidated financial statements
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 also manages its capital by close monitoring
of the ratio of debt over equity.
Financial risk
The financial 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 hyperinflationary 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
hyperinflation.
Risk management and opportunities
The Group regularly reviews its sources of financing
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 finished products at prices
which may be influenced 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 significant drop in the selling prices of raw
materials and conversely to generate profit margins
during the market downturns.
In parallel with this main policy, secondary policies
have also been implemented to improve or consolidate
profit 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,
financial instruments hedging against exchange
rate fluctuations may not be available for certain
currencies. This creates exposure to exchange rate
fluctuations which may have an impact on the financial
result denominated in euro.
In Nigeria, the availability of hard currency is extremely
limited. The gap between the central bank rate (CBN)
and OTC rates is widening, reaching 30 to 35% in 2022.
For consolidation purposes, the Group uses the Central
Bank of Nigeria (CBN) rates. These rates are disclosed
in Note 1.9 to the financial statements. The impact of
the Group’s Nigerian operations on the consolidated
result is disclosed in Note 32 (Segment information) to
the financial statements.
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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 finance
its development projects in local currencies in the
region given the significant investments made in
the plantations and wherever possible, to reduce
borrowings.
* Interest rate risk
Potential risk
This risk includes a change in cash flows relating to
short-term borrowings (often on a variable rate) and
the relatively high level of base interest rates on cash
and cash equivalents and developing markets when
borrowing in local currency.
Risk management and opportunities
The first risk is put under control by an active policy of
monitoring the evolution of local financial 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
defined by its Board of Directors.
Details on impairment of financial assets and liabilities,
including measurement of expected credit losses, are
disclosed in note 1.18.
Liquidity risk
Potential risk
Liquidity risk is defined 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 financing needs.
Risk management and opportunities
Given the specific 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
financing are supervised by the Group management.
The Group chooses, whenever possible, to maintain
financial 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 profitability.
The political system in some of the Group’s markets
remains relatively fragile and remains potentially
threatened by cross-border conflicts 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 flows 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.
Consolidated financial statements
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 diversification of the geographical distribution
of the countries in which the Group generates its
revenues and its cash flows reduces its exposure to
this risk.
Credibility risk
Potential risk
The Group is exposed to the risk of loss of confidence
of the financial markets in relation to its ability to
maintain a sound financial 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 monitor this risk 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 fluctuations 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
fluctuations in dollar against the euro. The impact on
the result of a 10% increase or decrease (EUR/USD)
in foreign currency financial instruments amounts to
EUR 1.3 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 2022 (including US dollars)
amounted to EUR 389.8 million. The global sales
(mainly concluded in US dollars) in 2022 amounted to
EUR 247.5 million.
* Interest rate risk
The breakdown of fixed rate loans and variable rate
loans is described in Note 22. Following the variable
rate loan arrangement entered into by Socfinaf 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 2022, the trade receivables from
global customers and local customers amount to
EUR 14.8 million and EUR 8.8 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.
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31/12/2022 31/12/2021
EUR EUR
Trade receivables
25,333,540 30,060,830
Provision incurred mainly on non-operational receivables
-1,814,318 -1,875,498
Other receivables
21,440,996 8,995,522
Total net receivables
44,960,218 37,180,854
Amount not yet due
44,704,982 36,392,777
Amount due less than 6 months
0 12,761
Amount due for more than 6 months and less than one year
255,236 755,648
Amount due for more than one year
0 19,668
Total net receivables
44,960,218 37,180,854
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 Côte d’Ivoire. This dispute concerns
the tax audit of the benefits 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 Côte d’Ivoire
(“CGECI”), to obtain a clear position from the CNPS
on this issue.
The CNPS had always granted a tolerance concerning
the determination of benefits 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.
Consolidated financial statements
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At the date of the closing of the accounts, the
amicable procedure is therefore still in progress. Its
outcome will determine whether or not the case is
referred to the Sassandra Court, which alone has the
power to enforce the parties. Insofar as there is no
legal constraint to date, and based on the above,
management is of the opinion that no provision should
be recorded because the probability of a claim is very
low.
Note 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,
Côte d’Ivoire, 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
On 24
th
February 2023, Socfinaf early repaid an amount
of USD 14,750,000 i.e. EUR 13,828,989 to Socfin as a
final reimbursement of the loan in USD.
Note 37. Auditor’s fees
2022 2021
EUR EUR
Audit (VAT included)
758,845
683,798
The audit fees include all fees paid to the independent
statutory auditor of the Group namely EY as well as
those paid to member firms within EY network for the
relevant years. No consulting work or other non-audit
services have been performed by this firm in 2022 or
in 2021.
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Company’s Management report
Presented by the Board of Directors
at the Annual General Meeting of 30
th
May 2023
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 2022.
Activities
Socfinaf holds financial interests in portfolio companies which operate directly or indirectly in tropical Africa in
the rubber and palm oil sectors.
Result for the period
The profit and loss account for the year, compared to that of the previous year, is as follows:
(EUR million)
2022 2021
INCOME
Value adjustments in respect of financial assets
0.4 3.0
Income from equity investments
Dividends received
46.9 32.9
Capital gain on disposal of financial fixed assets
0.1 0.7
Other interest receivable and similar income
7.4 3.4
Total income
54.8 40.0
EXPENSES
Impairment:
On financial assets 66.1 (1) 12.0
Other external expenses 2.9 3.3
Interest payable and similar expenses 18.6 14.2
Income tax 4.7 4.0
Total expenses
92.3 33.5
LOSS /PROFIT FOR THE FINANCIAL YEAR -37.5 6.5
(1) At 31
st
December 2022, the Board of Directors decided to reduce the acquisition value of Brabanta by
EUR 17,868,990 and the value of its loan by EUR 48,250,914.
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Revenue from financial assets
(EUR million)
2022 2021
Dividends
Socapalm 16.0 18.0
Okomu 15.2 6.4
Befin 7.5 4.6
Socfinco FR 4.0 1.0
Sogescol FR 2.7 1.9
Safa 0.9 0.6
Others 0.6 0.4
Total of dividends 46.9 32.9
Interest on receivables amounted to EUR 1.7 million
and foreign exchange gains to EUR 5.7 million.
The loss for the year amounted to EUR 37.5 million
compared to a profit of EUR 6.5 million at
31
st
December 2021. This result is impacted by
non-recurring impairments on Brabanta.
Balance sheet
At 31
st
December 2022, Socfinaf’s total assets amounted
to EUR 398.6 million compared to EUR 499.2 million at
31
st
December 2021.
Socfinaf’s assets mainly consist of financial fixed assets
of EUR 182.9 million, long term loan receivables
of EUR 178.8 million, amounts owed by affiliated
undertaking and other receivables for EUR 34.7 million,
and cash and equivalent of EUR 1.9 million.
The equity amounted to EUR 221.3 million before
appropriation of results.
Taking into account the positive cash flow of
EUR 28 million generated by the activity and the
repayment of the advances from the subsidiaries (SAC
and PSG) for EUR 37 million, Socfinaf’s indebtedness fell
from EUR 240 million on 1
st
January to EUR 177 million
on 31
st
December 2022.
Portfolio
Movements
During the year, the liquidation of Sodimex was
completed. Following the liquidation of Sodimex,
reversal of value adjustment for a total amount
of EUR 0.4 million was recorded. A non-recurring
impairment on Brabanta was recorded for a total
amount of EUR 66.1 million. In addition, Socfinaf
acquired Okomu shares for a total amount of
1.4 million euros and sold 5% of the capital of
Management Associates to Socfin.
Valuation
The investments are estimated at a total value of
EUR 688.7 million and includes an unrealised gain of
EUR 505.8 million compared to their acquisition costs,
potentially adjusted. This unrealised capital gain,
however, takes into account a valuation of Okomu
at the NGN/USD exchange rate of the Central Bank
of Nigeria. This exchange rate is significantly out of
line with the OTC markets prices. Taking the latter
into account, the capital gain would be reduced to
EUR 419.9 million.
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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 2022
(EUR million)
AFRICA
TOTAL
AFRICA
Sierra Leone
Liberia Côte d’Ivoire Ghana Nigeria Cameroon Sao Tomé DRC
SAC LAC & SRC SOGB SCC PSG OKOMU SOCAPALM SAFACAM AGRIPALMA BRABANTA
TURNOVER
Actual 2021
46,769 36,789 124,400 49,439 26,305 79,148 114,731 32,801 4,777 13,111 528,271
Actual 2022
58,436 40,675 140,233 57,224 31,615 132,867 112,852 35,406 7,782 16,345 633,434
Forecasts 2022
55,578 40,396 140,184 56,882 32,825 146,909 112,087 37,094 7,726 15,879 645,560
NET RESULT
Actual 2021
16,395 3,659 22,453 5,340 11,248 29,725 20,952 3,778 -1,938 -2,201 109,412
Actual 2022
16,483 1,278 23,863 4,858 5,560 38,955 16,269 4,189 909 -671 111,692
Forecasts 2022
21,034 683 28 ,261 5,277 9 753 49,988 16,279 4,996 1,102 667 138,041
PALM PRODUCT
SURFACE AREA
(HA)
Mature
12,349 - 7,471 - 6,140 19,060 29,197 5,230 2,100 6,072 87,619
Immature
- - - - - - 3,263 76 - - 3,339
Total
12,349 - 7,471 - 6,140 19,060 32,460 5,306 2,100 6,072 90,958
PRODUCTION
FFB
Actual 2021
222,488 - 163,663 - 103,054 221,746 491,049 77,275 23,928 62,766 1,365,969
Actual 2022
218,363 - 148,447 - 94,048 247,175 475,157 73,423 27,328 54,291 1,338,232
Forecasts 2022
235,687 - 142,937 - 100,008 261,221 481,087 76,066 24,596 55,342 1,376,944
CRUDE
PRODUCTION
Actual 2021
52,307 - 38,935 - 27,538 46,478 152,323 16,948 5,636 15,993 356,159
Actual 2022
51,919 - 35,301 - 25,375 54,101 146,231 16,526 6,429 13,769 349,653
Forecasts 2022
55,615 - 33,971 - 26,649 56,895 148,815 16,973 6,078 13,983 358,979
EXTRACTION
RATE
Actual 2022
23.51 - 22.77 - 26.72 20.82 22.02 21.67 23.56 24.32 22.63
Actual 2022
23.51 - 22.77 - 26.72 20.82 22.02 21.67 23.56 24.32 22.56
Forecasts 2022
23.50 - 22.50 - 25.00 21.50 22.08 22.50 23.50 23.00 22.55
TURNOVER
Actual 2021
46,769 - 36,370 - 25,914 67,450 112,425 23,596 4,777 13,111 330,411
Actual 2022
58,436 - 39,919 - 30,688 120,544 111,190 24,811 7,782 16,345 409,715
Forecasts 2022
55,578 - 39,576 - 32,093 133,779 110,746 25,988 7,726 15,879 421,365
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RUBBER
SURFACE
AREA (HA)
Mature
- 13,759 12,746 - 627 6,025 2,075 3,420 - - 38,651
Immature
- 3,022 3,116 - 315 1,310 - 932 - - 8,695
Total
- 16,781 15,862 - 942 7,335 2,075 4,352 - - 47,346
PRODUCTION
Actual 2021
- 26,872 67,727 39,273 - 9,277 - 6,919 - - 150,068
Actual 2022
- 27,401 65,815 39,554 - 8,124 - 6,377 - - 147,271
Forecasts 2022
- 27,739 66,134 39,049 - 8,389 - 6,742 - - 148,053
TURNOVER
Actual 2021
- 36,789 88,031 49,439 392 11,698 - 9,205 - - 195,554
Actual 2022
- 40,675 100,313 57,224 927 12,323 - 10,595 - - 222,057
Forecasts 2022
- 40,396 100,609 56,882 732 13,130 - 11,105 - - 222,853
The production data correspond to the quantities in tons of
Milled Rubber and Crude Palm Oil. This table does not include
refined oil production data (SPFS). Rubber production and sales
are presented after elimination of intercompany transactions.
Consolidated figures may however differ.
Management draws the attention that for its reporting purposes,
the Group uses the rates of the Central Bank of Nigeria.
However, in Nigeria, this exchange rate is significantly out of line
with the OTC market prices. Taking the latter into account, the
discount as at December 31, 2022 would reach 40%.
Allocation of profit
The loss of the year of EUR 37,542,749 increased by retained
earnings of EUR 131,413,608, give total retained earnings of
EUR 93,870,859 which it is proposed to carry forward again.
After this allocation, the total reserves will be as follows:
Reserves EUR
Legal reserve
3,567,330
Other reserves
628,717
Available reserve
59,629
Retained earnings
93,870,859
98,126,535
Treasury shares
The Company did not buy back its own shares during the 2022 financial year.
Research and development
During the financial year 2022, Socfinaf did not incur any expenses for research and development.
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Financial instruments
During the financial year 2022, the Company did not make use of any financial instruments.
Financial risk management policies are described in the notes to the Company’s consolidated financial 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
th
May 2006
concerning Public Takeover Bids
a) b) f) The issued 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, Socfin declared that it
holds a 58.85% direct stake in Socfinaf.
On 3
rd
September 2014, Compagnie du Cambodge
declared that it holds a direct and indirect stake
of 9% in the capital of Socfinaf. 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 statutes: “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 statutes: “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 first meeting
shall proceed to the final election.”
Art. 32. of the statutes: “The present statutes
can be modified 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 defined in Art. 17 and seq. of
the statutes 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 statutes 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.
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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 modified 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
The responsible management policy is based on the
Group’s three pillars of commitment, alongside
its specific commitment to transparency: rural
development, workers and local communities, and
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
defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin
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 of the share (company accounts)
The estimated value of Socfinaf at 31
st
December 2022
before allocation of the result for the financial year
amounts to EUR 727.1 million, being EUR 41.76 per
share compared to EUR 31.53 in the previous financial
year. This valuation incorporates the unrealised
capital gains of the portfolio. This unrealised capital
gain, however, takes into account a valuation of
Okomu at the NGN/USD exchange rate of the Central
Bank of Nigeria. This exchange rate is significantly out
of line with the price obtained on the OTC markets.
Taking the latter into account, the estimated value
would be reduced to EUR 36 per share.
As a reminder, the market share price was EUR 11.80
at the end of 2022 against EUR 12.00 a year earlier.
Significant events after the reporting date
On 24
th
February 2023, Socfinaf early repaid an amount
of USD 14,750,000 i.e. EUR 13.828.989 to Socfin as a
final reimbursement of the loan in USD.
Company’s Management report
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Company’s Management report
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 financial statements.
Perspectives
The result for the 2023 financial year will depend to a large extent on the dividend distributions of the
subsidiaries; these are not yet fixed.
Statutory appointments
The term served as director by Mr. Vincent Bolloré and
Gbenga Oyebode expire this year. It will be proposed
at the next Annual General Meeting to renew these
mandates for six years until the Annual General
Meeting of 2029.
Besides, it will be also proposed at the next Annual
General Meeting to appoint Mr. George Mensah as
Director of the Company.
The Board of Directors
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Audit report on the Company’s financial statements
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
To the Shareholders of
Socfinaf S.A
4, avenue Guillaume
L-1650 Luxembourg
Opinion
We have audited the financial statements of Socfinaf
S.A. (the “Company”), which comprise the balance
sheet as at 31
st
December 2022, and the profit and
loss account for the year then ended, and the notes
to the financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying financial statements
give a true and fair view of the financial position of the
Company as at 31
st
December 2022, 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
financial statements.
Basis for opinion
We conducted our audit in accordance with EU
Regulation N° 537/2014, the Law of 23
rd
July 2016
on the audit profession (the “Law of 23
rd
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
rd
July 2016 and ISAs are further described
in the “Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the financial 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 financial statements, and have fulfilled
our other ethical responsibilities under those ethical
requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context
of the audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Valuation of shares in affiliated undertakings
Risk identified
As at 31
st
December 2022, the shares in affiliated
undertakings amounts to 183 million euros and
represents 46% of the total assets of the balance
sheet. Shares in affiliated undertakings are valued at
historical acquisition cost, respectively their nominal
value, which includes incidental expenses. In the case
of durable depreciation in value according to the
opinion of the Board of Directors, value adjustments
are made in respect of financial fixed assets, so that
they are valued at the lower figure to be attributed
to them at the balance sheet date. These value
adjustments are not continued if the reasons for
which the value adjustments were made have ceased
to apply. In the event of an impairment that, in the
opinion of the Board of Directors, is of a lasting
nature, these financial 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.
The assessment of the durable depreciation in value
of these shares in affiliated undertakings requires the
exercise of the Board of Directors’ judgement in its
choice of the elements to be considered according
to the shares in affiliated undertakings, whether
market elements (shares price when applicable) and/
or historical elements (adjusted net equity) and/or
forecast elements (discounted future cash flows to
shareholders).
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Portrait du Groupe
Due to the size of the balance and judgement included,
we considered this area to be a key audit matter.
Our answer
Our audit procedures over the impairment of the shares
in affiliated undertakings included amongst other:
• Assessing the accounting policies determined by
the Board of Directors, as described in the note 2
of the financial statements, to determine the
value adjustments to be recorded on shares in the
affiliated 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
st
December 2022 used for the valuation of
shares in affiliated undertakings to the official
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 affiliated
undertakings as at 31
st
December 2022 to the
financial information of the related affiliated
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 financial 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 financial
statements and our report of “réviseur d’entreprises
agréé” thereon.
Our opinion on the financial 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 financial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial 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 financial statements
The Board of Directors is responsible for the
preparation and fair presentation of the financial
statements in accordance with Luxembourg legal and
regulatory requirements relating to the preparation
and presentation of the financial statements, and
for such internal control as the Board of Directors
determines is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
The Board of Directors is also responsible for
presenting the financial 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 financial 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 financial statements
The objectives of our audit are to obtain reasonable
assurance about whether the financial 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
rd
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
influence the economic decisions of users taken on the
basis of these financial statements.
Audit report on the Company’s financial statements
Audit report on the Company’s financial statements
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Audit report on the Company’s financial statements
As part of an audit in accordance with EU Regulation
N° 537/2014, the Law of 23
rd
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 financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient 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
significant 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 financial 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 financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
• Assess whether the financial 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 significant audit findings,
including any significant deficiencies 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 significance in the audit of the financial
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
th
May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments, is 3 years.
The management report is consistent with the financial
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
th
December 2002 on the commercial and companies
register and on the accounting records and annual
accounts of undertakings, as amended, is consistent
with the financial statements and has been prepared
in accordance with applicable legal requirements.
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Portrait du Groupe
Audit report on the Company’s financial statements
We have checked the compliance of the financial
statements of the Company as at 31
st
December2022
with relevant statutory requirements set out in the
ESEF Regulation that are applicable to the financial
statements.FortheCompany,itrelatesto:
• Financial statements prepared in valid xHTML
format
In our opinion, the financial statements of the
Company as at 31
st
December 2022, have been
prepared,inallmaterialrespects,incompliancewith
therequirementslaiddownintheESEFRegulation.
Weconfirmthattheauditopinionisconsistentwith
the additional report to the audit committee or
equivalent.
We confirm that the prohibited non-audit services
referred to in EU Regulation No 537/2014 were not
provided and that we remained independent of the
Companyinconductingtheaudit.
Ernst&Young
Sociétéanonyme
Cabinetderévisionagréé
Anthony CANNELLA
Luxembourg
Company financial statements
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1. Balance sheet at 31
st
December 2022
2022 2021
ASSETS
Note EUR EUR
FIXED ASSETS
Financial assets
3
Shares in affiliated undertakings 182,880,279.55 199,522,760.65
Loans to affiliated undertakings 178,795,759.27 269,552,427.50
361,676,038.82 469,075,188.15
CURRENT ASSETS
Debtors
Amounts owed by affiliated undertakings
becoming due and payable within one year 33,284,161.85 17,607,793.72
Other debtors
becoming due and payable within one year 1,452,480.00 2,333,506.60
34,736,641.85 19,941,300.32
Investments
Shares in affiliated undertakings
248,406.09 248,406.09
Cash at bank and in hand
1,939,330.90 9,960,182.80
TOTAL ASSETS
398,600,417.66 499,225,077.36
The accompanying notes form an integral part of the financial statements.
Company financial statements
Company financial statements
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2022 2021
CAPITAL, RESERVES AND LIABILITIES Note EUR EUR
CAPITAL AND RESERVES 4
Issued 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
Profit brought forward
131,413,608.00 124,914,492.68
Profit for the financial year
-37,542,749.31 6,499,115.32
221,253,701.82 258,796,451.13
CREDITORS
Amounts owed to credit institutions
becoming due and payable within one year 9.03 41.50
Trade creditors
becoming due and payable within one year 220,624.09 110,860.00
Amounts owed to affiliated undertakings 5
becoming due and payable after more than one year 120,000,000.00 186,463,934.52
becoming due and payable within one year 14,947,456.73 12,317,062.61
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 20,201,643.84
becoming due and payable within one year
20,203,836.00 20,201,644.00
Other creditors
Tax authorities 1,665,126.39 1,125,420.00
Other creditors
becoming due and payable within one year 108,019.76 8,019.76
177,346,715.84 240,428,626.23
TOTAL CAPITAL, RESERVES AND LIABILITIES 398,600,417.66 499,225,077.36
The accompanying notes form an integral part of the financial statements.
Company financial statements
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2. Income statement for the year ended 31
st
December 2022
2022 2021
Note EUR EUR
Raw materials and consumables and others external expenses
Other external expenses
-2,685,678.73 -2,553,559.66
Value adjustments
in respect of current assets 0.00 -12,463.34
Other operating expenses
-248,765.87 -646,464.19
Income from participating interests
derived from affiliated undertakings 7 46,958,007.91 33,539,007.13
Other interest receivable and similar income
derived from affiliated undertakings 8 7,273,633.68 3,124,153.86
other interest and similar income 109,529.96 255,759.64
Value adjustments in respect of financial assets and of
investments held as current assets
3 -65,679,615.45 -8,947,506.25
Interest payable and similar expenses
concerning affiliated undertakings -16,979,066.77 -12,610,509.22
other interest and similar expenses -1,618,491.65 -1,618,065.61
Tax on profit
-4,134,647.39 -3,506,212.04
Profit after taxation
-37,005,094.31 7,024,140.32
Other taxes not shown above
-537,655.00 -525,025.00
Profit for the financial year -37,542,749.31 6,499,115.32
Proposed distribution of profits
2022 2021
EUR EUR
Retained earnings
93,871,858.69 131,413,608.00
From the balance:
10% to the Board of Directors
0.00 0.00
90% to 17,836,650 shares
0.00 0.00
93,870,858.69 131,413,608.00
Dividend per share
0.00 0.00
The accompanying notes form an integral part of the financial statements.
Company financial statements
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3. Notes to the parent company financial statements for the 2022 financial 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 “Soparfi” on 10
th
January 2011.
The duration of the Company is unlimited, and its
registered office 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 financial 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, certificates, shares,
profit 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, affiliates and any other
company.
Although the Company is included in the consolidated
financial statements of Société Financière des
Caoutchoucs, abbreviated as “Socfin”, which is the
largest entity in which the Company is consolidated,
the Company also prepares consolidated financial
statements which are published in accordance with
the law and which are available at the Company’s
registered office (4, avenue Guillaume, L-1650
Luxembourg) or on the Internet site: www.socfin.com.
The financial year begins on 1
st
January and ends on
31
st
December.
Note 2. Accounting principles, rules and methods
General principles
The annual financial 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 financial 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 significant impact on the financial statements
for the period in which the assumptions are changed.
The Board of Directors believes that the underlying
assumptions are appropriate and that the financial
statements give a true and fair view of the financial
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.
Company financial statements
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At the balance sheet date:
- the acquisition price of the financial 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 profit 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 financial assets
Shares in affiliated undertakings are valued at
acquisition cost, which includes incidental expenses.
Receivables from affiliated 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
financial fixed 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
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 flows available to the
shareholders, which considers the foreseeable
development of the business of the investments
under test.
Company financial statements
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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 affiliated companies are subject to a value
adjustment in the event that the net book value test
by discounting future cash flows 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 profit and loss account.
Russia – Ukrain conflict
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
official 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 geopolitical tensions since February 2022,
there has been a significant increase in volatility on
the securities and currency markets, as well as a
significant depreciation of the ruble against the US
dollar and the euro.
Although neither the company’s performance and
going concern nor operations, have been significantly
impacted by the above during 2022, the Board of
Directors continues to monitor the evolving situation
and its impact on the financial position and results of
the company.
Company financial statements
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131
Note 3. Financial fixed assets
Shares in affiliated
undertakings
Loans to affiliated
undertakings Total
2022 2021 2022 2021 2022 2021
EUR EUR EUR EUR EUR EUR
Acquisition cost/nominal value at
the beginning 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
Increases
1,428,708.64 1.00 3,049,548.88 3,274,229.42 4,478,257.52 3,274,230.42
Decreases
-642,487.94 -4,980,517.82 -45,555,303.46 -33,560,744.06 -46,197,791.40 -38,541,261.88
Acquisition cost/nominal value at
the end of the year
240,584,754.25 239,798,533.55 236,026,274.20 278,532,028.78 476,611,028.45 518,330,562.33
Value adjustments at the beginning
of the year
-40,275,772.90 -40,307,867.93 -8,979,601.28 0.00 -49,255,374.18 -40,307,867.93
Impairment
-17,868,989.74 -3,000,090.00 -48,250,913.65 -8,979,601.28 -66,119,903.39 -11,979,691.28
Reversal
440,287.94 3,032,185.03 0.00 0.00 440,287.94 3,032,185.03
Value adjustments at the end
of the year
-57,704,474.70 -40,275,772.90 -57,230,514.93 -8,979,601.28 -114,934,989.63 -49,255,374.18
Net book value at the end
of the year
182,880,279.55 199,522,760.65 178,795,759.27 269,552,427.50 361,676,038.82 469,075,188.15
Company financial statements
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Note 3. Financial fixed assets (continued)
Information on companies in which the Company holds at least 20% of the capital
Entity Country % held
Net book value
EUR Year end
Currencies
of the
annual
accounts
Net equity
in foreign
currency at
31/12/2022
(including net
income) (*)
Net income
in foreign
currency at
31/12/2022
PlantationsSocfinafGhana Ghana 100.00 32,503,775 31.12.2022 GHS 225,168,097 77,289,093
SocfinAgriculturalCompany Sierra Leone 93.00 20,445,954 31.12.2022 USD 16,376,492 19,372,491
LiberianAgriculturalCompany Liberia 100.00 13,793,904 31.12.2022 USD 57,140,499 4,744,936
SalalaRubberCorporation Liberia 64.91 0 31.12.2022 USD 2,861,133 -421,173
Bereby-Finances"BEFIN" Côted'Ivoire 87.06 13,604,405 31.12.2022 XAF 15,983,921,022 5,557,643,910
Socapalm Cameroon 67.46 40,640,840 31.12.2022 XAF 71,120,117,643 13,743,634,055
OkomuOilPalmCompany Nigeria 66.38 22,151,171 31.12.2022 NGN 39,416,747,556 11,316,334,412
Brabanta Congo(DRC) 100.00 0 31.12.2022 CDF 71,046,617,102 -5,175,012,473
Induservices Luxembourg 30.00 30,000 31.12.2022 EUR 327,636 88,113
Socfinde Luxembourg 20.00 801,000 31.12.2022 EUR 6,023,090 139,836
Terrasia Luxembourg 33.28 246,705 31.12.2022 EUR 615,003 30,516
SAFA France 100.00 26,535,600 31.12.2022 EUR 21,845,650 2,176,216
InduservicesFR Switzerland 50.00 642,202 31.12.2022 EUR 1,095,421 102,087
SocfincoFR Switzerland 50.00 486,891 31.12.2022 EUR 16,432,078 8,833,675
SogescolFR Switzerland 50.00 1,985,019 31.12.2022 USD 17,955,034 8,864,552
SodimexFR Switzerland 50.00 621,424 31.12.2022 EUR 4,454,052 906,872
Centrages Belgium 50.00 4,074,577 31.12.2022 EUR 3,378,041 223,191
ImmobilièredelaPépinière Belgium 50.00 3,015,798 31.12.2022 EUR 3,656,008 10,856
Socfinco Belgium 50.00 879,550 31.12.2022 EUR 1,537,073 -6,383
STP Invest Belgium 100.00 0 31.12.2022 EUR 1,773,693 -1,110
182,458,815
(*)Basedonunauditedfinancialstatementsat31
st
December2022.
Valuation of shares in affiliated undertakings:
At 31
st
December2022,theBoardofDirectorsdecidedtoreducetheacquisitionvalueofBrabantabyEUR17,868,990followingthe
updateoftheportfoliovaluation.
At 31
st
December2022,theBoardofDirectorsisoftheopinionthatthereisnopermanentvaluedecreaseforthesharesinaffiliated
undertakings.
Company financial statements
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Note 3. Financial fixed assets (continued)
Valuation of loans to affiliated undertakings:
At 31
st
December2022,loanstoaffiliatedundertakingsareasfollows:
Related parties Currency Balance Balance
Unrealised
exchange gains /
(losses) *
in currency in EUR EUR
Induservices EUR 130,000 130,000 0
ManagementAssociates EUR 280,000 280,000 0
SalalaRubberCorporation USD 44,684,218 37,289,650 4,604,423
Brabanta USD 21,000,000 19,688,730 0
SocfinAgriculturalCompany USD 74,159,256 60,804,114 8,724,534
LiberianAgriculturalCompany USD 36,404,647 32,309,252 1,822,238
PlantationsSocfinafGhana USD 12,000,000 10,194,062 1,056,641
Agripalma EUR 18,099,947 18,099,947 0
Situation at 31
st
December 2022 269,552,427 16,207,836
* InaccordancewithLuxembourglegalandregulatoryprovisionsandgenerallyacceptedaccountingpractices,receivables
fromaffiliatedundertakingsaretranslatedatthehistoricalexchangerateandtheunrealisedforeignexchangegainorloss
isnotrecognisedintheprofitandlossaccount,withtheexceptionofthecurrentportionofreceivables,whichisvalued
individuallyattheloweroftheirhistoricalexchangeratevalueortheirvaluedeterminedonthebasisoftheexchangerate
prevailingatthebalancesheetdate.
At 31
st
December2022,theBoardofDirectorsdecidedtoreducethevalueoftheshareholderadvancegranted
toBrabantabyEUR48,250,914followingtheupdateoftheportfoliovaluation.
At 31
st
December2022,theBoardofDirectorsareoftheopinionthattheseloansarerecoverableassuch,no
impairmentlosshasbeenaccountedfor.
Company financial statements
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Note 4. Equity
Issued
capital
EUR
Share
premium
EUR
Legal
reserves
EUR
Other
reserves
EUR
Retained
earnings
EUR
Results for
the year
EUR
Balance at 1
st
January 2021
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
financial 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 financial year 6,499,115.32
Balance 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
Allocation of the result for the 2021
financial year following decision of
the General Meeting held on 31
st
May
2022
• Retained earnings
6,499,115.32 -6,499,115.32
Results for the financial year
-37,542,749.31
Balance at 31
st
December 2022
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 131,413,608.00 -37,542,749.31
Issued capital
At 31
st
December 2022 and 2021, the issued and fully paid share
capital is EUR 35,673,300 represented by 17,836,650 shares
without nominal value.
Share premium
At 31
st
December 2022 and 2021, the share premium amounted
to EUR 87,453,866.
Legal reserve
The annual profit is subject to a levy of 5% to be allocated to
a legal reserve. This allocation ceases to be mandatory when
the reserve reaches 10% of the share capital. The legal reserve
cannot be distributed.
Company financial statements
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135
Note 5. Amounts owed to affiliated undertakings
At 31
st
December 2022, this item consists mainly of:
- a debt to Socfin for a nominal amount of
EUR 120,000,000 (2021: EUR 120,000,000), and
accrued interest amounted EUR 510,000 (2021:
EUR 708,333) and which bear a fixed interest rate of
4.25%. This debt is repayable early or at the latest
on 10
th
November 2026.
- a debt to Socfin for a nominal amount of
EUR 13,828,989 (2021: EUR 75,293,177), and
accrued interest amounted EUR 272,502 (2021:
EUR 518,721). This debt bears interest at a variable
rate and is repayable early or at the latest on
10
th
November 2026.
- debts to the subsidiary Socfinde corresponding to
the current account balance of EUR 335,672 (2021:
EUR 2,247,085).
At 31
st
December 2022 and 2021, the maturity of debts to affiliated undertakings is as follows:
2022 2021
Amounts owed to affiliated undertakings: EUR EUR
becoming due and payable within one year 14,947,457 12,317,062
becoming due and payable between one to five years 120,000,000 186,463,935
134,947,457 198,780,997
Note 6. Amounts owed to undertakings with which the undertaking is linked by
virtue of participating interests:
At 31
st
December 2022, this item consists mainly of:
- a payable to Bolloré Participations for a nominal
amount of EUR 20,000,000 (2021: EUR 20,000,000),
plus accrued interest of EUR 203,836
(2021: EUR 200,542). This debt bears interest at
a fixed rate of 4% per annum and is repayable on
30
th
June 2024.
- a payable to Palmboomen Cultuur Maatschappij
“MOPOLI” for a nominal amount of EUR 20,000,000
(2021: EUR 20,000,000), plus accrued interest of
EUR 201,644 (2020: EUR 201,644). This debt bears
interest at a fixed rate of 4% per annum without
maturity date. Although reimbursements may be
made at first demand, MOPOLI has undertaken not
to request reimbursement of this advance before
15
th
July 2024.
Note 7. Income from participating interests
2022 2021
EUR EUR
Dividends received
46,939,258 32,868,364
Capital gain on disposal of financial fixed assets
18,750 670,643
46,958,008 33,539,007
Company financial statements
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Note 8. Income from other investments and loans forming part of the fixed
assets
2022 2021
EUR EUR
Interest on related companies’ receivables
7,273,634 3,124,154
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 2022, the members of the Board of Directors received EUR 9,062 (2021: EUR 11,562) as attendance fees
and EUR 230,000 (2020: EUR 630,000) as Directors’ fees.
During 2022, no advances or loans were granted to the Board members.
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,
- Côte d’Ivoire,
- 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, inflation in some cases, civil wars, etc), the investments held by the Company present a risk
in terms of exposure to political and economic fluctuations.
Note 12. Significant events after the end of the year
On 24
th
February 2023, the company early repaid an amount of USD 14,750,000 i.e. EUR 13.828.989 to Socfin as
a final reimbursement of the loan in USD.