Socfinaf S A : Inside Information / Ad Hoc Information SOCFINAF - Unaudited financial statements 2022

SOCFINAF

SOCFINAF

Registered office : 4 avenue Guillaume L-1650 Luxembourg

Registre de Commerce de Luxembourg : Section B 6225

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This unauditedAnnual Report 2022 include the financial statements of Socfinaf, all subsidiaries and direct and indirect associate companies.

This unauditedAnnual Report is currently under audit review, to date the audit review did not identify any material misstatement.

On 29th March 2023, the Board of Directors approved the unauditedconsolidated financial statements and Socfinaf's statutory financial statements.

The audited Annual Report 2022 will be published on 21st April 2023.

ANNUAL REPORT 2022

Table of contents

GROUP PROFILE	5
1.	OVERVIEW OF THE GROUP	5
2.	HISTORY	5
3.	GROUP STRUCTURE	6
4.	INFORMATION ON SOCFINAF'S HOLDINGS	7
	SOCFIN AGRICULTURAL COMPANY "SAC" LTD	8
	LIBERIAN AGRICULTURAL COMPANY "LAC"	9
	SALALA RUBBER CORPORATION "SRC"	10
	BEREBY-FINANCES "BEFIN"	10
	SOCIETE DES CAOUTCHOUC DU GRAND BEREBY "SOGB"	11
	SUD COMOË CAOUTCHOUC "SCC"	12
	PLANTATIONS SOCFINAF GHANA "PSG"	13
	OKOMU OIL PALM COMPANY	14
	SOCAPALM	15
	SOCIETE ANONYME FORESTIERE ET AGRICOLE "SAFA"	16
	SAFACAM	16
	SOCIETE DES PALMERAIES DE LA FERME SUISSE "SPFS"	17
	AGRIPALMA	18
	BRABANTA	19
	SOGESCOL FR	20
	SOCFINCO FR	21

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		SOCFINAF
INTERNATIONAL MARKET FOR RUBBER AND PALM OIL	22
1.	RUBBER	22
	The international market in 2022	23
	Outlook 2023	23
2.	PALM OIL	24
	The international market in 2022	26
	Outlook 2023	26
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
	Composition of the Board of Directors	32
	Other mandates held by the Directors in listed companies	32
	Appointments of Directors	34
	Role and powers of the Board of Directors	34
	Activity report of the Board of Directors	34
4. COMMITTEES OF THE BOARD OF DIRECTORS	35
	4.1. Audit Committee	35
	4.2. Appointment and Remuneration Committee	35
5. REMUNERATIONS	35
6. SHAREHOLDING STATUS	36
7. FINANCIAL CALENDAR	36
8. EXTERNAL AUDIT	36
9. CORPORATE, SOCIAL AND ENVIRONMENTAL RESPONSIBILITY	37
10. OTHER INFORMATION	37
STATEMENT OF COMPLIANCE	38
CONSOLIDATED MANAGEMENT REPORT	39
1. CONSOLIDATED FINANCIAL STATEMENTS	39
2. FINANCIAL INSTRUMENTS	40
3. OUTLOOK 2023	40
4. POLITICAL AND ECONOMIC ENVIRONMENT	40
5. EVENTS AFTER THE CLOSING DATE	41
6. CORPORATE GOVERNANCE	41
7. GENERAL INTERNAL CONTROL SYSTEM ADAPTED TO THE GROUP'S SPECIFIC ACTIVITIES	41
8. ENVIRONMENT AND SOCIAL RESPONSIBILITY	42
CONSOLIDATED FINANCIAL STATEMENTS	43
1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION	43
2. CONSOLIDATED INCOME STATEMENT	45
3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	46
4. CONSOLIDATED STATEMENT OF CASH FLOWS	47
5. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	48
6. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	49

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		SOCFINAF
	Note 1. Overview and accounting policies	49
	Note 2. Subsidiaries and associates	62
	Note 3. Leases	65
	Note 4. Intangible assets	67
	Note 5. Property, plant and equipment	68
	Note 6. Biological assets	69
	Note 7. Depreciation and impairment	70
	Note 8. Impairment of assets	70
	Note 9. Non-wholly owned subsidiaries in which non-controlling interests are significant	72
	Note 10. Investments in associates	74
	Note 11. Financial assets at fair value through other comprehensive income	77
	Note 12. Deferred taxes	77
	Note 13. Current tax assets and liabilities	78
	Note 14. Income tax expense	78
	Note 15. Inventories	80
	Note 16. Trade receivables (current assets)	81
	Note 17. Other receivables (current assets)	81
	Note 18. Cash and cash equivalents	81
	Note 19. Share capital and share premium	82
	Note 20. Legal reserves	82
	Note 21. Pension obligations	83
	Note 22. Financial debts	85
	Note 23. Trade and other payables	88
	Note 24. Financial instruments	89
	Note 25. Staff costs and average number of staff	91
	Note 26. Other financial income	91
	Note 27. Financial expenses	91
	Note 28. Net earnings per share	91
	Note 29. Dividends and Directors' fees	92
	Note 30. Information on related party	92
	Note 31. Off balance sheet commitments	94
	Note 32. Segment information	94
	Note 33. Risk management	101
	Note 34. Contingent liabilities	105
	Note 35. Political and economic environment	106
	Note 36. Events after the closing date	106
	Note 37. Auditor's fees	106
COMPANY'S MANAGEMENT REPORT	107
ACTIVITIES	107
RESULT FOR THE PERIOD	107
BALANCE SHEET	108
PORTFOLIO	108
COMPANY FINANCIAL STATEMENTS	113
1.	BALANCE SHEET AT 31ST DECEMBER 2022	113
2.	INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2022	115
	Proposed distribution of profits	115
3.	NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS FOR THE 2022 FINANCIAL YEAR	116
	Note 1. Overview	116
	Note 2. Accounting principles, rules and methods	116
	Note 3. Financial fixed assets	119
	Note 3. Financial fixed assets (continued)	120

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Note 3. Financial fixed assets (continued)	121
Note 4. Equity	122
Note 5. Amounts owed to affiliated undertakings	123
Note 6.	Amounts owed to undertakings with which the undertaking is linked by vitue of participating
interests:	123
Note 7.	Income from participating interests	124
Note 8.	Income from other investments and loans forming part of the fixed assets	124
Note 9.	Taxation	124
Note 10.	Remuneration of the Board of Directors	124
Note 11.	Political and economic environment	124
Note 12.	Significant events after the year end	124

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SOCFINAF

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 22nd 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 : Acquision 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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