Societe Financiere des Caoutchoucs Societe Anonyme : Inside Information / Ad Hoc Information - Socfin - Annual Report 2021 - EN

Socfin

ANNUAL REPORT

2021 SOCIETE FINANCIERE DES CAOUTCHOUCS

Table of contents

Group profile 4

1. Overview of the Group 4

2. History 4

3. Group structure 5

4. Information on the holdings of Socfin 6

International market for rubber and palm oil 9

1. Rubber 9

2. Palm oil 12

Environment and social responsibility 15

Key figures 16

1. Activity indicators 16

2. Key figures in the consolidated income statement 17 3. Key figures in the consolidated statement of financial position 17

Stock market data 18

Corporate governance statement 19

1. Introduction 19

2. Corporate governance chart 19

3. Board of Directors 19

4. Committees of the Board of Directors 22

4.1. Audit Committee 22

4.2. Appointment and Remuneration Committee 22

5. Remunerations 23

6. Shareholding status 23

7. Financial calendar 24

8. External audit 24

9. Corporate, social and environmental responsibility 24

10. Other information 24

Statement of compliance 25

Consolidated management report 26

Auditor's report on the consolidated financial statements 31

Consolidated financial statements 36

1. Consolidated statement of financial position 36

2. Consolidated income statement 38

3. Consolidated statement of comprehensive income 39

4. Consolidated statement of cash flows 40

5. Consolidated statement of changes in equity 41

6. Notes to the consolidated financial statements 42

Note 1. Overview and accounting policies 42

Note 2. Subsidiaries and associates 53

Note 3. Goodwill 56

Note 4. Leases 56

Note 5. Intangible assets 58

Note 6. Property, plant and equipment 59

Note 7. Biological assets 60

Note 8. Depreciation and impairment 62

Note 9. Impairment of assets 62

Note 10. Investment properties 64

Note 11. Non-wholly owned subsidiaries in which non-controlling interests are significant 65

Note 12. Financial assets at fair value through other comprehensive income 68

Note 13. Deferred taxes 69

Note 14. Current tax assets and liabilities 70

Note 15. Income tax expense 71

Note 16. Inventories 73

Table of contents
Note 17. Trade receivables (current assets)	74
Note 18. Other receivables (current assets)	74
Note 19. Cash and cash equivalents	75
Note 20. Share capital and share premium	75
Note 21. Legal reserve	75
Note 22. Pension obligations	76
Note 23. Financial debts	80
Note 24. Trade and other payables	84
Note 25. Financial instruments	85
Note 26. Staff costs and average number of staff	87
Note 27. Other financial income	87
Note 28. Financial expenses	88
Note 29. Net earnings per share	88
Note 30. Dividends and directors' fees	88
Note 31. Information on related party	89
Note 32. Off balance sheet commitments	90
Note 33. Segment information	90
Note 34. Risk management	98
Note 35. Contingent liabilities	101
Note 36. Political and economic environment	103
Note 37. Events after the closing date	103
Note 38. Auditor's fees	104
Company's management report	105
Audit report on the Company's financial statements	109
Company financial statements	113
1. Balance sheet at 31 December 2021	115
2. Income statement for the year ended 31 December 2021	117
3. Notes to the financial statements for the year 2021	118
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1. Overview of the Group

Société Financière des Caoutchoucs S.A., abbreviated "Socfin" is a Luxembourg company (the "Company"), with registered office at 4 avenue Guillaume, L-1650 Luxembourg. It was incorporated on 5th December 1959 and is listed on the Luxembourg Stock Exchange.

2. History

The principal activity of Socfin is to manage a portfolio of shares mainly focused on the exploitation of more than 192,000 hectares of tropical palm oil plantations and rubber trees located in Africa and South-East Asia. Socfin employs 34,945 people and achieved a consolidated revenue of EUR 837.6 million in 2021.

• • 05/12/1959 Constitution of the Société Financière Luxembourgeoise, abbreviated as "Socfinal" in the form of

a holding company.

• • 09/06/1960 The Socfinal shares have been listed on the Luxembourg Stock Exchange.

• • 31/12/1960 Since its formation, Socfinal has invested, among others, in: Société Financière des Caoutchoucs

  "Socfin" (Belgium); Plantations Nord-Sumatra (Belgium); Selangor Plantations Company Berhad

  (Malaysia); Sennah Rubber Company Ltd (England) and various societies of Congolese equatorial

  cultures.

• • 31/12/1965 The portfolio includes new investments in Indonesia: Société de Cultures Asahan; Société de

  Cultures Batangara; Huileries de Deli and Société de Cultures Sungei Liput

• • 31/12/1971 Socfinal invests in the Compagnie Internationale de Cultures "Intercultures", a Luxembourg

  company listed on the Luxembourg Stock Exchange; Socfin Industrial Development "Socfinde"

  (Luxembourg) and in Compagnie du Cambodge (France).

• • 31/12/1972 Socfinal participates in the formation of Socfinasia (Luxembourg) in exchange for the shares of

  Indonesian companies Asahan, Batangara, Huileries de Deli and Sungei Liput. Socfinasia will be

  listed on the Luxembourg Stock Exchange in 1973.

• • 31/12/1975 Disposal of Socfin (Belgium) shares from the portfolio.

• • 31/12/1980 Acquisition of Selangor Holding shares, a Luxembourg company listed on the Luxembourg Stock

  Exchange.

• • 31/12/1994 Socfinal invests 60% in the capital of SOGB (Ivory Coast) following the privatisation of this Ivorian

  plantation. This participation will be transferred to Intercultures.

• • 31/12/1999 Sale of holdings Selangor Holding and Plantations Nord-Sumatra.

• • 31/12/2000 Sale of Sennah Rubber Company shares following the public tender on these shares.

• • 15/11/2006 Following the distribution of Intercultures shares by Socfinasia (spin-off), Socfinal directly holds,

  on one side Socfinasia (Asia) and on the other Intercultures (Africa).

• • 10/01/2011 Extraordinary General Meeting which ratified to abandon the holding 29 status and the change of

  the name to Société Financière des Caoutchoucs, abbreviated "Socfin". Change of the name of

  Intercultures to Socfinaf

• • 01/07/2011 Share split by 20

• • 29/08/2014 Socfin exchanged 9% of Socfinaf shares against 100% of the shares of the company incorporated

  under French law, Société Anonyme Forestière and Agricole SAFA. The latter owns 68.93% of

  Safacam, a Cameroon plantation company that exploits 5,400 hectares of palm oil trees and 4,400

  hectares of rubber trees. Following this exchange, Socfin still holds 55.08% of Socfinaf

• • 31/12/2014 The SAFA participation was brought to Socfinaf through a capital increase by contribution in kind.

Socfin holds 56.48% of the capital of Socfinasia and 58.79% of the capital of Socfinaf.

Group profile

3. Group structure

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