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

Socfinasia S.A.

2021ANNUAL REPORT

TABLE OF CONTENTS

Group profile 4

1. Overview of the Group 4

2. History 4

3. Group structure 5

4. Information on Socfinasia's holdings 6

International market for rubber and palm oil 17

1. Rubber 17

Palm oil 20

Environment and social responsibility 23

Key figures 24

1.

Activity indicators 24

2. Key figures from the consolidated income statement and consolidated statement of cash flows 25

3.

Key figures in the consolidated statement of financial position 25

Stock market data 26

Financial highlights of the year 27

Corporate governance chart 28

1. Introduction 28

2. Corporate governance chart 28

3. Board of Directors 28

4. Committees of the Board of Directors 32

4.1. Audit Comittee 32

4.2. Appointment and Remuneration Committe 32

5. Remuneration 32

6. Shareholding status 33

7. Financial calendar 33

8. External audit 33

9. Corporate, social and environmental responsibility 34

10. Other information 34

Statement of compliance 35

Consolidated management report 36

Auditor's report on the consolidated financial statements 40

Consolidated financial statements 45

1. Consolidated statement of financial position 45

2. Consolidated income statement 47

3. Consolidated statement of comprehansive income 48

4. Consolidated statement of cash flows 49

5. Consolidated statement of changes in equity 50

6. Notes to the consolidated financial statements 51

Note 1. Overview and accounting policies 51

Note 2. Subsidiaries and associates 63

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 expense 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 73

Note 11. Financial assets at fair value through other comprehensive income 77

Note 12. Long term advance payments 77

Note 13. Deferred taxes 78

Note 14. Current tax assets and liabilities 79

TABLE OF CONTENTS
Note 15. Income tax expense	79
Note 16. Inventories	81
Note 17. Trade receivables (current assets)	82
Note 18. Other receivables (current assets)	82
Note 19. Cash and cash equivalents	82
Note 20. Share capital	83
Note 21. Reserve	83
Note 22. Pension obligations	84
Note 23. Financial debts	86
Note 24. Other payables	89
Note 25. Financial instruments	90
Note 26. Staff costs and average number of staff	92
Note 27. Other financial income	92
Note 28. Financial expenses	93
Note 29. Net earnings per share	93
Note 30. Dividends and directors' fees	93
Note 31. Information on related party	94
Note 32. Off balance sheet commitments	96
Note 33. Segment information	96
Note 34. Risk management	101
Note 35. Profit before interest, taxes, depreciation and amortisation	104
Note 36. Contingent liabilities	105
Note 37. Political and economic environment	106
Note 38. Events after the closing date	107
Note 39. Auditor's fees	107
Company's management report	108
Audit report on the Company's financial statements	114
Company financial statements	118
1. Balance sheet at 31 December 2021	118
2. Income statement for the year ended 31 December 2021	120
3. Notes to the financial statements for the year 2021	122
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1. Overview of the Group

Socfinasia S.A. is a Luxembourg holding company and its registered address is 4 Avenue Guillaume, L-1650 Luxembourg. It was incorporated on 20th November 1972 and is listed on the Stock Exchange of Luxembourg.

2. History

The principal activity of Socfinasia is to manage a portfolio of shares focused on the operation of more than 52,000 hectares of tropical palm oil and rubber plantations in Southeast Asia. Socfinasia employs 10,168 people and has achieved a consolidated turnover of EUR 168.2 million in 2021.

•	20/11/1972	Incorporation of Socfinasia as a Luxembourg holding company through contribution of shares in PT
Socfindo.
•	30/06/1973	Since its incorporation, Socfinasia has invested, amongst others, in Fininter (Belgium) and Socfinal
(Luxembourg).
•	23/01/1974	The shares of Socfinasia have been listed on the Stock Exchange of Luxembourg.
•	30/06/1975	The portfolio includes new investments: Socfin (Belgium), Plantations Nord Sumatra (Belgium) and
Selangor Plantations Cy (Malaysia).
•	30/06/1977	Socfinasia invests in Sennah Rubber Cy, New African Plantations Cy, la Banque d'Investissements
Privés and Socficom. It disposes of its stakes in Socfin (Belgium) and Socfinal.
•	04/12/1979	PT Socfindo increases its share capital through capitalisation of reserves. Free allotment of 1,166
shares in PT Atmindo.
•	31/12/1980	Acquisition of shares in Selangor Holding, a Luxembourg company listed on the Stock Exchange of
Luxembourg.
•	24/04/1989	PT Socfindo increases its share capital through the capitalisation of the revaluation reserve of its
fixed tangible assets.
•	31/03/1996	Acquisition of shares in Intercultures, a Luxembourg company listed on the Stock Exchange of
Luxembourg.
•	31/03/1997	Initially, Socfinasia increases its stake in its Indonesian subsidiaries: PT Socfindo and PT Atmindo.
Thereafter, Socfinasia incorporates Plantations Nord Sumatra Limited, to which it transferred its
Indonesian subsidiaries.
•	31/03/1999	Increase in the subscribed capital of Intercultures.
•	05/02/2000	Takeover bid/public exchange offer by Selangor Holding for Sennah Rubber Cy which will be
liquidated in August 2000.
•	01/04/2000	Increase in subscribed capital to EUR 25,062,500 and the accounting par to 1,002,500 shares.
•	26/06/2000	Takeover bid by Socfinasia on the shares of Selangor Holding which will be liquidated in May 2001.
•	17/10/2000	Change in financial year-end to 31st December.
•	31/12/2001	PNS Ltd has acquired 30% of PT Socfindo from the Indonesian state.
•	31/12/2006	Restructuring of the subsidiaries within the Socfinal Group, including the distribution of shares of
Intercultures by Socfinasia (spin-off) and repositioning of the operational companies within the
Group.
•	31/12/2007	Incorporation of Socfin-KCD (Cambodia).
•	17/03/2010	Disposal of Socfinaf Cy (Kenya).
•	10/01/2011	Extraordinary General Meeting which approves to abandon the holding 29 status.
•	01/07/2011	Share split by 20.
•	13/08/2013	Socfinasia has acquired, through its subsidiary PNS Ltd, 90% of Coviphama, a company incorporated
under the Cambodian Law, benefitting from a new grant of 5,300 hectares.
•	30/07/2015	Acquisition of shares in Socfin-KCD to increase the percentage holding to 100%.

Group profile

3. Group structure

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