Socfinaf S A : Inside Information / Ad Hoc Information - Socfinaf - Annual Report 2021 - EN

Socfinaf S.A.

2021ANNUAL REPORT

TABLE OF CONTENTS

Group profile 4

1. Overview of the Group 4

2. History 4

3. Group structure 6

4. Information on Socfinaf 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 69

Note 4. Intangible assets 71

Note 5. Property, plant and equipment 72

Note 6. Biological assets 73

Note 7. Depreciation and impairment 74

Note 8. Impairment of assets 74

Note 9. Non-wholly owned subsidiaries in which non-controlling interests are significant 76

Note 10. Investments in associates 78

Note 11. Financial assets at fair value through other comprehensive income 82

Note 12. Deferred taxes 82

Note 13. Current tax assets and liabilities 83

Note 14. Income tax expense 84

Note 15. Inventories 86

Table of contents

Note 16. Trade receivables (current assets) 87

Note 17. Other receivables (current assets) 87

Note 18. Cash and cash equivalents 87

Note 19. Share capital and share premium 88

Note 20. Legal reserves 88

Note 21. Pension obligations 89

Note 22. Financial debts 91

Note 23. Trade and other payables 95

Note 24. Financial instruments 96

Note 25. Staff costs and average number of staff 98

Note 26. Other financial products 98

Note 27. Finance charges 98

Note 28. Net earnings per share 99

Note 29. Dividends and Directors' fees 99

Note 30. Information on related party 100

Note 31. Off balance sheet commitments 102

Note 32. Segment information 103

Note 33. Risk management 110

Note 34. Contingent liabilities 113

Note 35. Political and economic environment 114

Note 36. Events after the closing date 114

Note 37. Auditor's fees 114

Company's management report 115

Audit report on the Company's financial statements 122

Company financial statements 126

1. Balance sheet as at 31st December 2021 126

2. Income statement for the year ended 31st December 2021 128

3. Notes to the parent company financial statements for the 2021 financial year 129

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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 Luxembourg Stock Exchange.

2. History

The principal activity of Socfinaf is to manage a portfolio of shares mainly focused on the operation of more than 138,900 hectares of tropical palm oil and rubber plantations in Africa. Socfinaf employs 24,596 people and has achieved a consolidated turnover of EUR 526.7 million in 2021.

• • 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 Ivory Coast via Bereby Finances "Befin", an Ivory Coast holding company.

• • 30/06/1997 Acquired 5% of Palmci, an Ivory Coast 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 (Ivory Coast).

• • 31/12/2008 Constitution of Sud Comoë Caoutchouc "SCC" (Ivory Coast) 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 ratifies the abandonment of the status of Holding company 29 and change of the denomination to Socfinaf.

• • 01/07/2011 Share split by 10.

Group profile

•	06/10/2011	Acquisition of 32.9% of Palmcams shares which is totally owned by Socfinaf.
•	31/12/2012	Acquisition of 3.4% of Okomu Oil Palm Company 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).