222100G1I5GZATXY2511 2023-01-01 2023-12-31 222100G1I5GZATXY2511 2022-01-01 2022-12-31 222100G1I5GZATXY2511 2023-12-31 222100G1I5GZATXY2511 2022-12-31 222100G1I5GZATXY2511 2021-12-31 222100G1I5GZATXY2511 2023-12-31 ifrs-full:IssuedCapitalMember 222100G1I5GZATXY2511 2023-12-31 ifrs-full:SharePremiumMember 222100G1I5GZATXY2511 2023-12-31 ifrs-full:StatutoryReserveMember 222100G1I5GZATXY2511 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 222100G1I5GZATXY2511 2023-01-01 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 222100G1I5GZATXY2511 2023-12-31 socf:ConsolidatedReservesMember 222100G1I5GZATXY2511 2023-01-01 2023-12-31 socf:ConsolidatedReservesMember 222100G1I5GZATXY2511 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 222100G1I5GZATXY2511 2023-01-01 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 222100G1I5GZATXY2511 2023-12-31 ifrs-full:NoncontrollingInterestsMember 222100G1I5GZATXY2511 2023-01-01 2023-12-31 ifrs-full:NoncontrollingInterestsMember 222100G1I5GZATXY2511 2022-01-01 2022-12-31 socf:ConsolidatedReservesMember 222100G1I5GZATXY2511 2022-01-01 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 222100G1I5GZATXY2511 2022-01-01 2022-12-31 ifrs-full:NoncontrollingInterestsMember 222100G1I5GZATXY2511 2022-01-01 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 222100G1I5GZATXY2511 2022-12-31 ifrs-full:IssuedCapitalMember 222100G1I5GZATXY2511 2022-12-31 ifrs-full:SharePremiumMember 222100G1I5GZATXY2511 2022-12-31 ifrs-full:StatutoryReserveMember 222100G1I5GZATXY2511 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 222100G1I5GZATXY2511 2022-12-31 socf:ConsolidatedReservesMember 222100G1I5GZATXY2511 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 222100G1I5GZATXY2511 2022-12-31 ifrs-full:NoncontrollingInterestsMember 222100G1I5GZATXY2511 2021-12-31 ifrs-full:IssuedCapitalMember 222100G1I5GZATXY2511 2021-12-31 ifrs-full:SharePremiumMember 222100G1I5GZATXY2511 2021-12-31 ifrs-full:StatutoryReserveMember 222100G1I5GZATXY2511 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 222100G1I5GZATXY2511 2021-12-31 socf:ConsolidatedReservesMember 222100G1I5GZATXY2511 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 222100G1I5GZATXY2511 2021-12-31 ifrs-full:NoncontrollingInterestsMember xbrli:shares iso4217:EUR iso4217:EUR xbrli:shares
20 23
ANNUAL REPORT
Socfinaf S.A.
2
|
ANNUAL REPORT 2023
|
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 21
1. Rubber 21
2. Palm  oil 24
Environment and social responsibility 27
Key figures 28
1. Activity  indicators 28
2. Key  figures  in  the  consolidated  income  statement  and  the  cash  flow  statement 29
3. Key  figures  in  the  consolidated  statement  of  financial  position 29
Stock market data 30
Financial highlights of the year 30
Corporate governance statement 31
1. Introduction 31
2. Corporate  governance  chart 31
3. Board  of  Directors 31
4. Committees  of  the  Board  of  Directors 34
4.1.Audit  Committee 34
4.2.Appointment  and  Remuneration  Committee 35
5. Remunerations 35
6. Shareholding  status 35
7. Financial  calendar 36
8. External  audit 36
9. Corporate,  social  and  environmental  responsibility 36
10. Other information 36
Statement of compliance 37
Consolidated management report 38
Auditor’s report on the consolidated financial statements 42
Consolidated financial statements 47
1. Consolidated  statement  of  financial  position 47
2.  Consolidated  income  statement 49
3.  Consolidated  statement  of  comprehensive  income 50
4.  Consolidated  statement  of  cash  flows 51
5.  Consolidated  statement  of  changes  in  equity 52
6.  Notes  to  the  consolidated  financial  statements 53
Note  1.  Overview  and  accounting  policies 53
Note  2.  Subsidiaries  and  associates 65
Note  3.  Restatement  and  reclassification 67
Note  4.  Leases 69
Note  5.  Intangible  assets 71
Note  6.  Property,  plant  and  equipment 72
Note  7.  Biological  assets 73
Note  8.  Depreciation  and  impairment 74
Note  9.  Impairment  of  assets 74
Note  10.  Non-wholly  owned  subsidiaries  in  which  non-controlling  interests  are  significant 76
Note  11.  Investments  in  associates 78
Note  12.  Financial  assets  at  fair  value  through  other  comprehensive  income 81
Note  13.  Deferred  taxes 82
Note  14.  Current  tax  assets  and  liabilities 83
Note  15.  Income  tax  expense 84
Table of contents
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
3
Note  16.  Inventories 85
Note  17.  Trade  receivables  (current  assets) 86
Note  18.  Other  receivables  (current  assets) 87
Note  19.  Cash  and  cash  equivalents 87
Note  20.  Share  capital  and  share  premium 88
Note  21.  Legal  reserves 88
Note  22.  Pension  obligations 89
Note  23.  Financial  debts 91
Note  24.  Trade  and  other  payables 95
Note  25.  Financial  instruments 96
Note  26.  Staff  costs  and  average  number  of  staff 98
Note  27.  Other  financial  income 98
Note  28.  Financial  expenses 98
Note  29.  Net  earnings  per  share 99
Note  30.  Dividends  and  Directors’fees 99
Note  31.  Information  on  related  party 100
Note  32.  Off  balance  sheet  commitments 102
Note  33.  Segment  information 103
Note  34.  Risk  management 110
Note  35.  Contingent  liabilities 113
Note  36.  Political  and  economic  environment 114
Note  37.  Events  after  the  closing  date 114
Note  38.Assets  classified  as  held  for  sale 114
Note  39.Auditor’s  fees 115
Company’s management report 116
Audit report on the Company’s financial statements 123
Company financial statements 127
1. Balance  sheet  as  at  31  December  2023 127
2. Income  statement  for  the  year  ended  31  December  2023 129
3. Notes  to  the  parent  company  financial  statements  for  the  2023  financial  year 130
Note 1. Overview 130
Note  2.Accounting  principles,  rules  and  methods 130
Note  3.  Financial  fixed  assets 133
Note  4.  Equity 136
Note  5.Amounts  owed  to  affiliated  undertakings 137
Note  6.Amounts  owed  to  undertakings  with  which  the  undertaking  is  linked
by  vitue  of  participating  interests: 137
Note  7.  Income  from  participating  interests 137
Note  8.  Income  from  other  investments  and  loans  forming  part  of  the  fixed  assets 137
Note  9.  Taxation 138
Note  10.  Remuneration  of  the  Board  of  Directors 138
Note  11.  Political  and  economic  environment 138
Note  12.  Off-balance  sheet  commitments 138
Note  13.  Significant  events  after  the  year  end 138
Glossary 139
4
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
P ortr ait du Groupe Group profile
1. Overview of the Group
SocfinafisaLuxembourgish companywhoseregistered
addressis  4,  AvenueGuillaume,  L-1650,Luxembourg.
Itwasincorporatedon22October1961andislisted
on  the  Stock  Exchange  of  Luxembourg.
Socfinaf’sprincipal activity is to manage a portfolio
ofsharesthatmainlyfocusontheoperationofmore
than  137,000  hectaresof  tropical  palm  oil  and  rubber
plantations in Africa. As of 2023, Socfinaf employs
23,940 people and has achieved a consolidated
turnover  of  EUR  563  million  over  that  same  year.
2. History
• 22/10/1961: Incorporation of Compagnie Internationale de Cultures (Intercultures) as a Luxembourgish
holding  company.
• 31/12/1961: Interculturesinvestsintwo  Congoleseplantationsnamed“La  CompagnieCongolaisedel’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: Progressofnegotiationswith  Zaire-exitofZairian  holdingsfromtheportfolioandaccounting
for  Zaire  claim.
• 19/05/1995: Increaseof  the  share  capital  ofIntercultures  in  order  to  relaunchthe  Company’s  activity  inthe
field  of  tropical  plantations.
• 30/06/1995: Acquisition of 65%ofSociétédes Caoutchoucs du GrandBereby“SOGB” in Côte d’Ivoirevia
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.
Inaddition,Intercultures  acquiredthroughitsLuxembourgsubsidiary  (IndufinaLuxembourg)54%
of  an  oil  palm  plantation  in  Nigeria,  Okomu  Oil  Palm  Company.
• 31/03/1999: InterculturescontinuestheexpansionofitsinvestmentsinAfricaandmorespecificallyinLiberia:
acquisitionof70%ofWealaRubberCompany,ownerofarubberfactoryand75%ofLiberian
AgriculturalCompany“LAC”whichhasarubberconcession
G
(termshavinga
G
areexplainedpart
“Glossary”  at  the  end  of  the  annual  report).
• 31/03/2000: Acquisition  of89.64%ofSociétédesPalmeraies  dela  FermeSuisse“SPFS”,aCamerooncompany
active  in  the  production,  processing  and  refining  of  palm  oil.
• 31/12/2000: ThroughaCameroonholdingPalmcam,Interculturescontinuesitsinvestments  inCameroonin
Socapalm,  a  company  active  in  the  production  and  processing  of  palm  oil.
• 31/12/2001: Furtherincrease  in  share  capitalwhich  allowed  Intercultures  toincrease  its  stake  inOkomu  Oil
Palm  Company  and  in  Befin  (parent  company  of  SOGB).
• 31/12/2006: RestructuringofSocfinalGroup’sholdings,includingthedistributionofInterculturessharesby
Socfinasia  (spin-off)  and  repositioning  of  the  Group’s  operating  companies.
• 31/12/2007: Interculturesacquired  99.8%  of  Brabanta,  acompany  developing  a  palm  oil  plantationin  Congo
(DRC).Ontheotherhand,InterculturessolditsholdingsWealaRubberCompany(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: ExtraordinaryGeneralMeetingwhich  ratifiedtheabandonof  theholding29statusand  change
of  the  designation  to  Socfinaf.
• 01/07/2011: Share  split  by  10.
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
5
• 06/10/2011: Acquisition  of  32.9%  of  Palmcam’s  shares  which  is  entirely  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: Acquisitionof100%ofSTPInvest’s shares,aBelgiancompanywhichowns88%ofAgripalma,
benefitting  from  a  grant  of  5,000  hectares  concession
G
on  the  island  of  São  Tomé.
• 31/12/2014: Capitalincreasewiththeissueof1,474,200newsharessubscribedbySocfininexchangefor
100%  oftheshares  ofSociétéAnonyme  ForestièreetAgricole  “SAFA”.  It  owns68.93%  of  Safacam
(Cameroon).
• 01/01/2015: Beginningof  Sogescol  Cameroon  and  Camseeds,  whichwere  formed  in  2014  bySogescol  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
6
|
ANNUAL REPORT 2023
|
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%
100%
100%
66%
100%
100%
88%
BEREBY-FINANCES
Côte d’Ivoire
SAFA
France
93%
100%
100%
69%
87%
70%
100%
67%
73%
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
7
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
795 100%
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%
ManagementAssociates
1,500 15.00%
Switzerland
Sogescol  FR
2,650 50.00%
Socfinco  FR
650 50.00%
Induservices  FR
700 50.00%
Sodimex  FR
675 50.00%
The  followingpages  containasummary  ofthe  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  the  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
8
|
ANNUAL REPORT 2023
|
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
As at 31 December 2023 Mature Immature Total
Palm 12,349 0 12,349
Concessions
G
:  18,473  ha
Permanent  staff  as  at  31  December  2023:  2,375
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm  oil 50,249 51,919
Turnover  (EUR  000) 44,341 58,554
Result  (EUR  000) 11,126 16,516
Average sale price (EUR / kg)
Palm  oil 0.88 1.13
Average  rate  EUR  /  USD 1.08 1.05
Closing  rate  EUR  /  USD 1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed  assets
124,216 131,376
Current assets
13,813 7,315
Equity  (*)
45,729 33,684
Debts,  provisions  and  third  parties  (*)
92,299 105,007
Profit  /  (loss)  for  the  period
12,046 17,307
Socfinaf’s  holding  (%)
93.00 93.00
(*)  Before  profit  allocation.
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
9
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
As at 31 December 2023 Mature Immature Total
Rubber 10,711 1,558 12,269
Concessions
G
:  121,407  ha
Permanent  staff  as  at  31  December  2023:  2,036
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 27,694 27,401
Turnover  (EUR  000) 34,964 40,757
Result  (EUR  000) -16,538 3,509
Average sale price (EUR / kg)
Rubber 1.26 1.49
Average  rate  EUR  /  USD 1.08 1.05
Closing  rate  EUR  /  USD 1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed  assets 64,814 83,995
Current assets 24,252 23,589
Equity  (*) 42,913 60,817
Debts,  provisions  and  third  parties  (*) 46,153 46,767
Profit  /  (loss)  for  the  period -17,904 3,677
Socfinaf’s  holding  (%) 100.00 100.00
(*)  Before  profit  allocation.
Group profile
10
|
ANNUAL REPORT 2023
|
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
As at 31 December 2023 Mature Immature Total
Rubber  plantation 3,335 1,110 4,445
Concessions
G
:  8,000  ha
Permanent  staff  as  at  31  December  2023:  229
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 5,314 4,563
Turnover  (EUR  000) 4,018 4,469
Result  (EUR  000) -2,638 -2,229
Average sale price (EUR / kg)
Rubber 0.76 0.98
Average  rate  EUR  /  USD 1.08 1.05
Closing  rate  EUR  /  USD 1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed  assets 44,025 46,130
Current assets 2,554 2,686
Equity -2,331 526
Debts,  provisions  and  third  parties 48,910 48,291
Profit  /  (loss)  for  the  period -2,856 -2,335
Socfinaf’s  direct  and  indirect  holding  (%) 100.00 100.00
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
11
BEREBY-FINANCES “BEFIN”
Share  capital:  CFA8,500,000,000
This  Côte  d’Ivoire  holding  company  holds  73.16%  of  SOGB  and  70.01%  of  SCC.
SOCIETE DES CAOUTCHOUCS DU GRAND BEREBY “SOGB”
Share  capital:  CFA21,601,840,000
SOGB  is  active  in  Côte  d’Ivoire  in  the  production  and  processing  of  palm  oil  and  rubber.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Palm 7,471 20 7,491
Rubber 12,906 2,879 15,785
TOTAL 20,377 2,899 23,276
Concessions
G
:  34,712  ha
Permanent  staff  at  31  December  2023:  6,281
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 64,309 65,815
Palm  oil 34,159 35,301
Turnover  (EUR  000) 111,971 143,125
Result  (EUR  000) 8,035 23,863
Average selling price (EUR / kg)
Rubber 1.22 1.52
Palm  oil 0.91 1.13
Rate  EUR  /  CFA 655.957 655.957
Key figures (CFA million)
As at 31 December 2023 2022
Fixed  assets 63,269 64,408
Current assets 25,738 27,065
Equity  (*) 60,756 68,879
Debts,  provisions  and  third  parties  (*) 28,251 22,594
Profit  /  (loss)  for  the  period 5,270 15,653
Distribution 7,094 8,000
Socfinaf’s  indirect  holding  (%) 63.69 63.69
(*)  Before  profit  allocation.
Group profile
12
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
SUD COMOË CAOUTCHOUC “SCC”
Share  capital:  CFA964,160,000
SCC  is  active  in  Côte  d’Ivoire  in  the  industrial  rubber  processing  sector.
Key data
Permanent  staff  at  31  December  2023:  408
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 38,559 39,554
Turnover  (EUR  000) 48,644 57,479
Result  (EUR  000) 4,099 4,858
Average selling price (EUR / kg)
Rubber 1.26 1.45
Rate  EUR  /  CFA 655.957 655.957
Key figures (CFA million)
As at 31 December 2023 2022
Fixed  assets 3,727 3,977
Current assets 10,196 11,978
Equity  (*) 7,976 7,987
Debts,  provisions  and  third  parties  (*) 5,947 7,968
Profit  /  (loss)  for  the  period 2,689 3,187
Distribution 2,000 2,500
Socfinaf’s  indirect  holding  (%) 60.95 60.95
(*)  Before  profit  allocation.
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
13
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
As at 31 December 2023 Mature Immature Total
Rubber 942 0 942
Palm 6,140 0 6,140
TOTAL 7,082 0 7,082
Concessions
G
:  18,304  ha
Permanent  staff  as  at  31  December  2023:  2,642
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 1,280 814
Palm  oil 35,472 25,375
Turnover  (EUR  000) 34,514 33,083
Result  (EUR  000)
12,795 5,808
Average selling price (EUR / kg)
Rubber 0.89 1.19
Palm  oil 0.94 1.26
Average  rate  EUR  /  GHS 12.07 8.42
Closing  rate  EUR  /  GHS 13.13 9.15
Key figures (GHS 000)
As at 31 December 2023 2022
Fixed  assets 477,066 465,946
Current assets 39,895 65,401
Equity  (*) 428,495 274,059
Debts,  provisions  and  third  parties  (*) 88,465 257,288
Profit  /  (loss)  for  the  period 154,436 48,891
Socfinaf’s  holding  (%) 100 100
(*)  Before  profit  allocation.
Group profile
14
|
ANNUAL REPORT 2023
|
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
As at 31 December 2023 Mature Immature Total
Rubber 6,265 1,070 7,335
Palm 19,045 0 19,045
TOTAL 25,310 1,070 26,380
Concessions
G
:  33,113  ha
Permanent  staff  at  31  December  2023:  1,862
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 9,907 8,124
Palm  oil 69,563 54,091
Turnover  (EUR  000) 113,519 133,280
Result  (EUR  000) 35,264 38,963
Average selling price (EUR / kg)
Rubber 1.21 1.52
Palm  oil 1.46 2.23
Average  rate  EUR  /  NGN 662 445
Closing  rate  EUR  /  NGN 995 479
Key figures (NGN 000)
As at 31 December 2023 2022
Fixed  assets 59,399,143 55,902,697
Current assets 23,325,373 13,717,176
Equity  (*) 40,633,430 42,017,150
Debts,  provisions  and  third  parties  (*) 42,091,087 27,602,722
Profit  /  (loss)  for  the  period 23,331,914 17,342,677
Distribution 13,292,595 20,032,110
Gross  dividend  per  share  (NGN) 13.93 21.00
Socfinaf’s  holding  (%) 66.38 66.38
(*)  Before  profit  allocation.
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
15
SOCAPALM
Share  capital:  CFA45,757,890,000
Socapalmis  activeinCameroon  inthe  productionand  processingof  palmoil  andthe  cultivationof  rubbertrees.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Rubber 1,936 0 1,936
Palm 29,458 2,975 32,433
TOTAL 31,394 2,975 34,369
Concessions
G
:  58,063  ha
Permanent  staff  at  31  December  2023:  2,664
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm  oil 138,783 146,232
Rubber  (*) 2,499 1,734
Turnover  (EUR  000) 129,003 112,852
Result  (EUR  000) 18,194 16,269
Average selling price (EUR / kg)
Palm  oil 0.91 0.75
Rubber 0.71 0.82
Rate  EUR  /  CFA 655.957 655.957
Key figures (CFA million)
As at 31
December 2023 2022
Fixed  assets 73,401 74,493
Current assets 18,657 20,762
Equity  (**) 67,873 66,234
Debts,  provisions  and  third  parties  (**) 24,185 29,022
Profit  /  (loss)  for  the  period 11,934 10,672
Distribution 9,630 9,450
Socfinaf’s  holding  (%) 67.46 67.46
(*)Agricultural  production  fully  sold  to  SAFACAM.
(**)  Before  profit  allocation.
Group profile
16
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
SOCIETE ANONYME FORESTIERE ET AGRICOLE “SAFA”
Share  capital:  EUR  4,040,400
This  French  company  owns  68.93%  of  Safacam.
SAFACAM
Share  capital:  CFA6,210,000,000
Safacam  is  active  in  Cameroon  in  the  production  and  processing  of  palmoil  and  the  cultivation  of  rubber  trees.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Palm 5,306 0 5,306
Rubber 3,509 917 4,426
TOTAL 8,815 917 9,732
Concessions
G
and  land  owned:  17,690  ha
Permanent  staff  as  at  31  December  2023:  2,475
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm  oil 16,096 16,526
Palm  kernel  oil 9,770 8,531
Rubber 9,004 6,377
Turnover  (EUR  000) 35,943 35,406
Result  (EUR  000) 934 4,189
Average selling price (EUR / kg)
Palm  Products 1.61 1.50
Rubber 1.08 1.66
Rate  EUR  /  CFA 655.957 655.957
Key figures (CFA million)
As at 31 December 2023 2022
Fixed  assets 22,602 21,901
Current assets 9,107 8,251
Equity  (*) 19,242 21,374
Debts,  provisions  and  third  parties  (*) 12,467 8,778
Profit  /  (loss)  for  the  period 613 2,748
Distribution 1,000 2,484
Socfinaf’s  indirect  holding  (%) 69.05 69.05
(*)  Before  profit  allocation.
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
17
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
As at 31 December 2023 Mature Immature Total
Palm 1,879 0 1,879
Concessions
G
and  land  owned:  2,388  ha
Permanent  staff  as  at  31  December  2023:  789
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm  oil 4,870 6,430
Turnover  (EUR  000) 5,512 7,782
Result  (EUR  000) -2,463 849
Average selling price (EUR / kg)
Palm  oil 1.13 1.21
Average  rate  EUR  /  STN 24.50 24.50
Closing  rate  EUR  /  STN 24.50 24.50
Key figures (STN million)
As at 31 December 2023 2022
Fixed  assets 667 691
Current assets 94 103
Equity -16 44
Debts,  provisions  and  third  parties 777 750
Profit  /  (loss)  for  the  period -60 21
Socfinaf’s  indirect  holding  (%) 88.00 88.00
Group profile
18
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
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
As at 31 December 2023 Mature Immature Total
Palm 6,072 0 6,072
Concessions
G
:  8,380  ha
Permanent  staff  as  at  31  December  2023:  2,023
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm  oil 13,231 13,769
Turnover  (EUR  000) 10,923 16,366
Result  (EUR  000) -4,803 -672
Average selling price (EUR / kg)
Palm  oil 0.83 1.19
Average  rate  EUR  /  CDF 2,514 2,103
Closing  rate  EUR  /  CDF 2,961 2,151
Key figures (CDF million)
As at 31 December 2023 2022
Fixed  assets 139,957 133,043
Current assets 175,848 115,053
Equity  (*) 74,717 69,634
Debts,  provisions  and  third  parties  (*) 241,088 178,463
Profit  /  (loss)  for  the  period -12,077 -1,413
Socfinaf’s  holding  (%) 100.00 100.00
(*)  Before  profit  allocation.
Group profile
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
19
SOGESCOL FR
Share  capital:  CHF  5,300,000
Sogescol  FR  is  a  Swiss  company  that  sells  rubber  and  palm  oil.
The financialyearendedon31December2023with a profit of USD 6,705,434.TheBoardofDirectorswill
propose  to  the  General  Meeting  of  Shareholders  a  profit  distribution  of  USD  8,000,000.
2023 2022
Average  rate  EUR  /  USD
1.08 1.05
Closing  rate  EUR  /  USD
1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed  assets
4,031 773
Current assets
49,001 50,991
Equity  (*)
16,660 17,955
Debts,  provision  and  third  parties  (*)
36,372 33,809
Profit  /  (loss)  for  the  period
6,705 8,865
Distribution
8,000 8,000
Gross  dividend  per  share  (USD)
1,509 1,509
Socfinaf’s  holding  (%)
50.00 50.00
(*)  Before  profit  allocation.
Group profile
20
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
SOCFINCO FR
Share  capital:  CHF  1,300,000
SocfincoFR  isa  Swisscompany,  whichprovides  services,studies  andmanagement  ofagro-industrial  plantations.
Socfinco  FR  covers  the  agro-industrial  sector  of  palm  oil  and  rubber.
The  financialyear  thatended  on  31December  2023shows  aprofit  ofEUR  6,488,998.The  Boardof  Directorswill
propose  to  the  General  Meeting  of  Shareholders  a  profit  distribution  of  EUR  6,000,000.
Key figures (EUR 000)
As at 31 December 2023 2022
Fixed  assets 5,444 4,309
Current assets 19,703 22,133
Equity  (*) 14,921 16,432
Debts,  provisions  and  third  parties  (*) 10,225 10,010
Sales  and  services 26,709 30,293
Profit  /  (loss)  for  the  period 6,489 8,834
Distribution 6,000 8,000
Gross  dividend  per  share  (EUR) 4,615 6,154
Socfinaf’s  holding  (%) 50.00 50.00
(*)  Before  profit  allocation.
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
21
1. Rubber
SGX - NATURAL RUBBER - 5 years +
SGX - NATURAL RUBBER - 1 year +
$ct/Kg
Jan 2023
Feb 2023
Mar 2023
Apr 2023
May 2023
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
100
120
140
160
180
200
220
100
120
140
160
180
200
220
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
22
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
The international market in 2023
Theaveragenaturalrubberprice(TSR20
G
1
st
position
on SGX
G
) for the year 2023 is USD 1,377/T FOB
G
SingaporecomparedwithUSD1,548/T  in2022,afall
of  11%.
Converted into euros, the average TSR20
G
price in
2023isEUR1,273/T,comparedwithEUR1,469/T in
2022.
The  endof  2022was  markedby  the  endof  the‘zero-
covid’ policyinChinaandhighstocksofnaturalrubber
in consumer countries. China, the world’s leading
consumer of natural rubber, saw one of its lowest
rates  of  economic  growth  for  40  years  in  2022,  at  3%.
Hopes of a recovery in Chinese economic activity at
the start of the year enabled natural rubber prices
to reach levels close to USD 1,450/T at the end
ofJanuary2023.Indeed,theliftingofpublichealth
measures was expected to go hand in hand with a
spectacular  upturn  inthe  Chinese  economy.  In  reality,
however, thecountryhas notrecovered,faced with
a major property crisis, falling exports and sluggish
domestic  consumption.
Against this backdrop, and despite the start of the
winter  seasoninproducing  countries,pricesremained
under pressure from February onwards, fluctuating
between USD 1,300 and USD 1,400/T against a
backdrop  ofslowing  consumption,  thewar  in  Ukraine,
persistent  inflationary  pressures,restrictive  monetary
policies on the part of the main central banks and
turbulence in the banking sector. In mid-August,
natural rubber prices reached their lowest point of
the  year  at  USD  1,270/T.
The  fallin  demandfor  natural  rubberwas  particularly
feltintheEuropeanandAmerican markets, leading
toanincreasein inventories at tyre manufacturers’
plants.
ThefallinproductioninIndonesiaandMalaysia,due
in particular to a rubber tree disease, did not have
apositiveeffect on naturalrubberprices, as itwas
offset by increased production in other countries
such as Côte d’Ivoire and Cambodia. In 2023, Côte
d’Ivoire recorded its strongest annual production
growth(+26%)forfiveyears,consolidatingitsstatus
astheworld’sthirdproducer with 1.68 million tons
produced.
From the end of August, natural rubber prices
recovered following measures taken by the Chinese
government to stimulate economic growth and
downward revisions to production in Thailand and
Indonesia  due  to  heavy  rains  hampering  harvests.
AttheendofDecember,naturalrubberpricesbroke
through the USD 1,500/T barrier and reached their
highestleveloftheyearatUSD1,561/Tonthelast
closing  day  of  2023.
In stark contrast to 2021 and the first half of2022,
globallogisticsimprovedattheendof2022andocean
freight rates fell steadily during 2023 to return to
pre-COVID  levels.  Freight  rates  out  ofAsia  have  fallen
fasterthanout ofAfrica, makingAsian rubbermore
competitive with African rubber.
However, the tensions that have arisen in the Red
Sea have had an impact on freight rates from Asia
to Europe, which began to rise sharply at the end
of 2023. Shipowners are now having to divert their
vessels  tothe  Capeof  Good  Hopeinstead  ofthe  Suez
Canal,and  areimposingsubstantial  freightsurcharges
for  cargoes  originating  inAsia.
According to the latest forecasts published by
GlobalData in February 2024, world natural rubber
productionin2023willbe14.15 million tons, down
1.1% on 2022, while world consumption will be
14.03 million tons, up 2.3% on 2022, resulting in
a surplus of 118,000 tons in 2023 compared with
596,000  tons  in  2022.
International market for rubber and palm oil
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
23
Outlook 2024
Natural  rubber  prices  remained  above  USD  1,500/T  at
the  startof  theyear,  reachingUSD  1,603/Tatthe  end
of  February,  their  highest  level  since  July  2022.
Naturalrubberprices  shouldbesupportedin2024  by
tightsupplyand  arecoveryindemand.  Poor  weather
conditions  whichdisruptedproduction  inthe  southern
provinces  of  Thailandin  late2023  and  early2024  and
thepossibilityofanearlywinterinthemainproducing
countries linked to the El Niño phenomenon could
amplify  the  natural  rubber  deficit  forecast  for  2024.
The end of interest rate rises and, depending on
inflation trends, a probable easing of monetary
policybycentralbanksintheUSA andEuropecould
encourage an economic recovery with a positive
impact  in  terms  of  demand  for  natural  rubber.
Price trends will also depend on the effectiveness
of the measures taken by the Chinese government
to stimulate the economic recovery, which remains
affected by an unprecedented property crisis and
aglobaleconomic slowdownasa resultofthe fight
against  inflation.
Theentryintoforceattheendof2024oftheEuropean
“EUDR” regulation aimed at banning certain raw
materials
G
derivedfromdeforestationshouldchange
the structure of the market. The strong demand
from  tyremanufacturers  fortraceable  naturalrubber
destinedformainland  Europeshouldenableproducers
who can prove that their supply chain is legal and
does not come from deforested areas to obtain a
substantial premium over the reference market.
RubberproducerswhodonotcomplywiththeEUDR
will be forced to sell their production outside the
single  market  at  a  lower  premium.
According to the IRSG’s
G
latest forecasts, published
inAugust2023,theIRSG
G
estimatesworldproductionin
2024at14.90milliontons(up2.2%)andworlddemand
of around 14.95 million tons (up 2.7%), resulting in
a rubber deficit of 48,000 tons. Consumption and
production  are  therefore  almost  in  balance.
The TSR20
G
1
st
FOB
G
SingaporepositiononSGX
G
was
quoted  at  USD  1,603/T  on  23  February  2024.
International market for rubber and palm oil
24
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
2. Palm oil
CIF ROTTERDAM - PALM OILS - 5 years +
CIF ROTTERDAM - PALM OILS - 1 year +
$/Mton
Jan 2023
Feb 2023
Mar 2023
Apr 2023
May 2023
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
500
600
700
800
900
1,000
1,100
1,200
1,300
500
600
700
800
900
1,000
1,100
1,200
1,300
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
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
25
World palm oil production in million tons
(source:  Oil  World)
2024 (*) 2023 2022 2021 2020 2019 2018 2015 2005 1995
Indonesia 48.2 48.4 46.7 44.7 42.8 44.2 41.6 33.4 14.1 4.2
Malaysia 18.4 18.6 18.5 18.1 19.1 19.9 19.5 20.0 15.0 7.8
Other 14.8 14.4 14.0 13.1 12.2 12.4 11.9 9.1 4.8 3.2
TOTAL
81.4 81.6 79.2 75.9 74.1 76.5 73.0 62.5 33.9 15.2
(*)  Estimated  (December  2023).
Production of the main oils in million tons
(source:  Oil  World)
Oct 2023 to Sep 2024 (*) 2023 2022 2021 2020 2019 2018 2015 2005 1995
Palm 81.4 81.6 79.2 75.9 74.1 76.5 73.0 62.5 33.9 15.2
Soya 61.4 59.7 60.1 60.1 58.6 56.8 56.8 48.8 33.6 20.2
Rapeseed 30.9 30.6 25.7 26.9 25.3 24.9 25.6 26.3 16.2 10.8
Sunflower 22.3 22.3 19.7 18.9 21.3 20.7 19.0 15.1 9.7 8.7
Palm  kernel 8.5 8.4 8.2 8.0 7.8 8.1 7.7 6.8 4.0 2.0
Cotton 4.5 4.4 4.4 4.4 4.6 4.6 4.7 4.7 5.0 3.9
Peanut 4.4 4.4 4.7 4.4 4.2 3.7 4.0 3.7 4.5 4.3
Copra 3.0 3.1 3.0 2.8 2.6 2.9 2.9 2.9 3.2 3.3
TOTAL
216.6 214.5 205.1 201.4 198.5 198.2 193.7 170.8 110.1 68.4
(*)  Estimated  (December  2023).
The international market in 2023
TheaveragepriceforCIFRotterdam
G
crudepalmoil
in 2023 is USD 964/T, compared with USD 1,352/T
in 2022.
Whereas 2022 had been characterised by high price
volatility,2023wasmarkedbyadegreeofstability,
withpricesmostlyfluctuatingbetweenUSD900and
USD  1,000/T.
In2022,pricesrosespectacularlyinthefirsthalfof
theyear,triggered byasuddenrestrictionin supply
duetotheRussian-Ukrainianconflictandprotectionist
measurestakenby  Indonesia.Then,in  thesecond  half
of the year, rising stocks and the massive return of
Indonesian palm oil to the markets created strong
downward pressure on prices. After losing almost
USD  500/T  inthe  spaceof  a  fewmonths,  theprice  of
CIFRotterdam
G
crudepalmoilended2022ataround
USD  1,000/T.
Over  the  first  few  months  of  2023,  prices  stabilised  at
around USD 1,000/T, with the market torn between
bullishandbearishnews.Thesupplyofvegetableoil
on  themarketsremained  strong,encouraging  bearish
sentiment.At the same time, fairly positive export
statistics and difficult weather conditions likely to
affect harvests helped to support prices during this
period.
After  severalmonths  without  muchvolatility,  palm  oil
prices  finallyeroded  inMay,  fallingfrom  USD1,000/T
to USD 850/T CIF Rotterdam
G
, before rebounding
in  Junefollowing  announcements  ofa  likely  returnof
theEl  Niñoweatherphenomenon.In  South-East  Asia,
ElNiñoistraditionallysynonymouswithdrought,which
canlead  tosharp  fallsin  production,andtherefore  a
tightening  of  palm  oil  supply  on  the  markets.
However, while the occurrence of this climatic
phenomenonhasnowbeenconfirmed, theforecasts
for a “strong” El Niño have gradually faded. The
impactonpalmoilproductioncouldbedelayedand
less  severe  than  expected.
Oil World forecasts global palm oil production at
around  81.6  million  tons  in  2023.
International market for rubber and palm oil
26
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Demandremainsstrong,despite  theslowdowninthe
Chinese  economy.India  remainsthe  biggest  importer,
withalmost10milliontonsexpectedtobeimported
by  2023.But  the  biggestconsumer  is  Indonesia,which
absorbsmorethan20milliontonsofpalmoilayear,
or40%ofitsproduction.Theproportiondestinedfor
the biofuel industry (11 million tons) now exceeds
that  destined  for  the  food  industry  (9  million  tons).
Attheendof  23December2023,theCIFRotterdam
G
CPO
G
was  trading  at  around  USD  935/T.
Outlook 2024
After rising sharply in recent years, global palm oil
production is now running out of steam. The two
main palm oil producing countries, Indonesia and
Malaysia(85%ofworldproduction),areexperiencing
a slowdown in production growth, with fewer areas
availableforplantingandlabourshortages.Inaddition,
the possible effects of the El Niño phenomenon on
palmplantationscouldalsohaveanimpactonpalm
oil  production  in  2024.
Theavailable  supplyofpalm  oilcould  thereforeprove
insufficient to satisfy the growth in world demand.
Demand remains strong, thanks in particular to the
increasein  theworld’s  populationandthe  continuing
rise in demand for vegetable oils in developing
countries.
Given the current global economic slowdown,
however, demand could show signs of weakening,
even  if  themain  importing  countries,  ledby  India  and
China,  do  not  see  their  consumption  fall  significantly.
The biofuels industry’s increasingly ambitious
programmes(B20inMalaysia,B35in  Indonesia)should
providesomesupportforpalmoilprices.By2023,it
is  estimated  that  over20  million  tons  of  palmoil  (25%
of global production) will have been used to make
biodiesel.
Some  experts  also  believe  that  the  entry  into  force  of
the  European  regulation  on  importedproducts  (EUDR)
couldcreateatwo-tier  palmoil  market.From  theend
of  2024,  this  lawwill  prohibit  the  arrival  on  European
soilof rawmaterials
G
originating fromdeforestation
zones after 2020. This restrictive legislation could
split the palm oil market in two: on the one hand,
traceablepalmoilproduced  bythe  largestplantations
capableofcomplyingwithEuropeanregulations,and
on the other, downgraded oil produced by smaller
playersthat  willbesoldoutside  theEuropeanUnion.
This  “non-labelled”  oil  would  then  see  its  price  fall  in
relation  to  “EUDR”  palm  oil.
Palmoil pricesarealso likely tobeaffected bythe
trend insoyapricesin2024.Brazil,which accounts
foralmost  40%of  globalsoyaproduction,  iscurrently
experiencingsevereweatherproblems(dryweatherin
MatoGrossoandheavy  raininParaná)thatarelikely
toaffectthe 2024harvestand influence theoverall
supply  of  vegetable  oils  on  the  markets.
On 23 February 2024, the CIF Rotterdam
G
CPO
G
was
quoted  at  around  USD  960/ton.
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
27
Alongwithitsspecific commitment totransparency,
theGroup  hasbuiltaresponsible  managementpolicy
around  its  three  pillars  of  commitment,  namely:  rural
development, workers and local communities, and
environment. These commitments form the basis of
keyinitiatives  thatareaimedat  improvinglong-term
economic performance, social well-being, health,
safety  and  natural  resource  management.
An implementation plan for this policy has been
defined  and  implemented  since  2022.
A regularlyupdateddashboard,aswellasaseparate
annual report (“Sustainable Development Report”),
details the efforts and actions undertaken by the
Socfin  Group  in  this  area.
The responsible management policy, the dashboard
and the annual sustainable development report are
available  on  the  Group’s  website.
Environment and social responsibility
28
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
1. Activity indicators
Area (hectares) Rubber Palm
As at 31 December 2023
Immatures  (by  year  of  planting)
2023 606
761
2022 391
755
2021 935
1,480
2020 1,000 0
2019 1,373 0
2018 2,146 0
2017 912 0
2016 167 0
2015 3 0
2014
0 0
Total immatures 7,535 2,996
Young (from  8  to  11  years) 12,425 (from  4  to  7  years) 14,295
Prime (from  12  to  22  years) 18,440 (from  8  to  18  years) 46,024
Old (above  22  years) 8,739 (above  18  years) 27,401
Total in production 39,603
87,720
TOTAL 47,138
90,716
Area (hectares) 2023 2022 2021 2020 2019
Palm 90,716 90,959 91,004 91,207 91,220
Rubber 47,138 47,278 47,940 48,146 48,361
TOTAL 137,854 138,237
138,944 139,353 139,581
Production 2023 2022 2021 2020 2019
Palm oil (tons)
362,424 349,644 355,924 321,348 278,979
Own  production
G
319,591 308,544 309,149 285,726 244,551
Third  party  purchases
G
42,834 41,100 46,775 35,623 34,428
Rubber (tons)
149,472 147,271 151,848 144,456 147,851
Own  production
G
68,210 59,027 55,450 48,972 53,749
Third  party  purchases
G
81,262 88,243 96,397 95,484 94,102
Seeds (thousands) 3,464 4,495 3,362 1,413
Own  production
G
3,464 4,495 3,362 1,413
Key figures
Key figures
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
29
Key figures
Turnover (EUR million) 2023 2022 2021 2020 2019
Palm 370 408 328 241 210
Rubber 187 222 196 157 164
Other  agricultural  products 2 0 1 1 0
Other 4 7 2 4 3
TOTAL
563 637 527 403 376
Staff 2023 2022 2021 2020 2019
Average  workforce
23,940 25,453 24,596 23,291 24,166
2. Key figures in the consolidated income statement and the cash flow
statement
(EUR million)
2023 2022
Restated
2021 2020 2019
Turnover 563 637 527 403 376
Operating  income 105 175 143 56 47
Profit  /  (loss)  for  the  period  attributable  to  the  Group 28 73 72 -4 4
Net  cash  flows  from  operating  activities 147 190 154 91 65
Free  cash  flows
G
98 136 93 30 9
3. Key figures in the consolidated statement of financial position
(EUR million)
2023 2022
Restated
2021
Restated
2020 2019
Bearer  biological  assets 300 350 366 364 405
Other non-current assets 300 324 316 290 304
Current assets 191 230 209 171 169
Assets  held  for  sale 6 0 0 0 0
Total  equity 464 485 416 334 385
Non-current  liabilities 166 220 295 182 197
Current  liabilities 167 199 180 310 298
30
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
(EUR)
2023 2022
Restated
2021
Restated
2020 2019
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 363,885,495 368,561,160 301,530,511 224,895,450 272,328,282
Undiluted  net  profit  per  share
1.58 4.10 4.04 -0.22 0.22
Dividend  per  share 0.00 0.00 0.00 0.00 0.00
Share price
Minimum 10.00 11.30 8.10 7.00 8.20
Maximum 13.40 15.80 12.40 12.60 12.20
Closing 10.80 12.10 12.00 11.10 12.00
Market  capitalisation
G
192,635,820 215,823,465 214,039,800 197,986,815 214,039,800
Dividend  paid  /  net  profit  attributable  to  the
owners of the Company
N.a. N.a. N.a. N.a. N.a.
Dividends  /  market  capitalisation
G
N.a. N.a. N.a. N.a. N.a.
Market  price  /  undiluted  net  profit  per  share 6.82 2.95 2.97 -51.03 55.60
No  material  events  occurred  during  the  financial  period.
Financial highlights of the year
Stock market data
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
31
Corporate governance statement
1. Introduction
Socfinafpayscloseattentiontotheevolutionoftheten
principlesofcorporategovernanceoftheLuxembourg
StockExchange.Itcommitstoprovidingthenecessary
explanations for a comprehensive understanding on
how the Company functions.
Corporate governance is a set of principles and
ruleswhosemainobjectiveistocontribute tolong-
termvaluecreation.ItallowstheBoardtopromote
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 November 2018. It was updated on
27  March  2024  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  2029
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  2029
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
Mr.  George  QUARTENG-MENSAH Ghanaian 1953 Administrator AGM  2023 AGO  2029
(a)  Non-Executive  Non-Independent  Director
(b)  Executive  Non-Independent  Director
(c)  Independent  Director
The term served by Mr. Cyrille Bolloré as director
expires this year. The renewal of this term will be
proposedatthenextAnnual General Meeting.This
renewalwillholdforsixyearsuntiltheAnnualGeneral
Meeting  of  2030.
Anew  administrator  Mr.  George  Quarteng-Mensah  was
appointedatthelastAnnualGeneralMeetingforsix
years  until  2029.
Corporate governance statement
32
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Other mandates held by the Directors in listed companies
Hubert Fabri
Chairman
Positions and offices held in Luxembourgish companies
• ChairmananddirectoroftheBoardofDirectorsofSociétéFinancièredesCaoutchoucs“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 Luxembourgish 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 desCaoutchoucsduGrandBereby“SOGB”andSociété Camerounaise de Palmeraies
“Socapalm”.
Bolloré Participations
Director
Positions and offices held in Luxembourgish companies
• Director  of  Socfinaf.
Positions and offices held in foreign companies
• Member  of  the  Supervisory  Board  of  Compagnie  du  Cambodge;
• Director  of  BolloréSE,  Compagnie  des  Tramwaysde  Rouen,  Société  desChemins  de  Fer  et  Tramways  du  Var
etduGard,Sociétédes  Caoutchoucsdu  GrandBereby  “SOGB”,Société  IndustrielleetFinancièredel’Artois,
Financière  Moncey,  S.A.F.A.  Cameroun  “Safacam”  and  Société  Camerounaise  de  Palmeraies  “Socapalm”.
Gbenga Oyebode
Director
Positions and offices held in Luxembourgish companies
• Director  of  Socfinaf.
Positions and offices held in foreign companies
• Chairman  of  Okomu  Oil  Palm  Company;
• Director  of  Nestlé  Nigeria  and  LafargeAfrica.
• Director  of  LafargeAfrica  plc,  which  is  listed  on  the  Nigerian  Stock  Exchange.
Corporate governance statement
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
33
François Fabri
Managing Director
Positions and offices held in Luxembourgish companies
• Director  of  Société  Financière  des  Caoutchoucs  “Socfin”,  Socfinaf  and  Socfinasia;
• Executive  Director  of  Socfinaf.
Positions and offices held in foreign companies
• PermanentRepresentativeof  Administrationand  FinanceCorporation“AFICO”onthe  BoardofSociétédes
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  Camerounaise  de  Palmeraies  “Socapalm”.
Philippe Fabri
Director
Positions and offices held in Luxembourgish 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 Luxembourgish companies
• Director  of  Socfinaf.
George Quarteng-Mensah
Administrator
Positions and offices held in Luxembourgish companies
• Director  of  Socfinaf.
Corporate governance statement
34
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
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 the passing of or
following the resignation of one or more Directors,
the  remainingDirectors  willproceedto  temporaryco-
optations.These co-optationswill besubjectto the
approvaloftheAnnualGeneralMeetingatitsfollowing
meeting.The Directorappointedto 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
themanagementoftheCompanyandthecontrolof
day-to-day  management.  Itacts  in  the  interest  of  the
Company.
TheBoardofDirectorsensuresthatallfinancialand
human resources are available and ensures that all
the necessary structures are in place to achieve its
objectives  and  secure  long-term  value  creation.
The Articles of Association empower the Board of
Directorsthepowertoperformallactionsnecessary
to achieve the corporate purpose.
Activity report of the Board of Directors
Number of meetings
Thereareatleasttwomeetingsfortheendofyear
and mid-year evaluations. During the 2023 financial
year,  the  Board  of  Directors  met  2  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
-  2023:  87%
-  2022:  83%
-  2021:  83%
-  2020:  85%
-  2019:  71%
4. Committees of the Board of Directors
4.1. Audit Committee
TheCommitteeconsistsofthreemembers,ofwhich
2areindependentsandoneisassignedasPresident
of theAudit Committee. The members of theAudit
Committeeare  appointedforone  yearandareeligible
forre-election.ThisAuditCommitteeiseffective  asof
1January  2024andhasbeen  inchargeofsupervising
the preparation of the financial information for the
year 2023.
The Board of Directors has proposed that it will be
constituted  as  follows:
• Mr.  Frédéric  Lemaire  (Independent  Director)
- Chairman
• Mr.  Philippe  Fabri  (Director)
Corporate governance statement
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
35
Theappointmentofthenon-executivememberswill
beconfirmedattheGeneralMeetingofShareholders
on  29  May  2024.
TheAuditCommittee  willassist  theBoard  ofDirectors
in its supervisory function and is responsible of the
monitoring of the financial reporting, the audit
process,the  analysisand  thecontroloffinancial  risks.
TheAudit  Committee  shall  meet  three  times  a  year.
4.2. Appointment and Remuneration Committee
The principal shareholders set the remuneration of
the operational management of Socfinaf. The Board
of Directors does not consider it necessary to set up
a Remuneration Committee. Similarly, for practical
reasonsand  duetothesizeof  theCompany,theBoard
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 of 2023 amounts to EUR 488,730 compared to
EUR  356,995  for  the  financial  year  2022.
The Directors of Socfinaf did not receive any other
payment  in  shares  (stock  options).
6. Shareholding status
On31December  2014,Socfinafissued1,474,200new
shareswhichbringstoatotalof17,854,200number
ofsharesissued.Allstatementsfiledbetween1July
2011 and 31 December 2014 relate to the previous
number  of  sharesin  place  and  theprevious  number  of
voting  rights,  i.e.  16,380,000.
On31December2023,thesharecapitalisrepresented
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.
(b)  =  before  increase  in  share  capital  on  31  December  2014.
Corporate governance statement
36
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
7. Financial calendar
29  May  2024 Annual  General  Meeting  at  10  a.m.
End  of  September  2024 Half  year  stand  alone  and  consolidated  results  as  at  30  June  2024
Mid-November  2023 Interim  Management  statement  for  3
rd
quarter  of  2024
End  of  March  2025 Annual  stand  alone  results  as  at  31  December  2024
Mid-April  2025 Consolidated  annual  results  as  at  31  December  2024
Mid-May  2025 Interim  Management  statement  for  the  1
st
quarter  of  2025
28  May  2025 Annual  General  Meeting  at  10  a.m.
TheresultsoftheCompanyarepublishedonthewebsiteoftheLuxembourgStockExchangewww.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”
35EAvenue  John  F.  Kennedy
L-1855  Luxembourg.
In2023,  theaudit  feesamountedto  EUR732,412  VAT
included.
Theauditfeesincludeallfeespaidtotheindependent
statutoryauditoroftheGroupnamelyEYaswellas
those  paid  to  member  firms  withinEY  network  for  the
relevant  years.  Noconsulting  work  or  other  non-audit
serviceshavebeenperformedbythisfirmin2023or
in 2022.
9. Corporate, social and environmental responsibility
Alongwithitsspecific commitment totransparency,
theGroup  hasbuiltaresponsible  managementpolicy
around  its  three  pillars  of  commitment,  namely:  rural
development, workers and local communities, and
environment. These commitments form the basis of
keyinitiatives  thatareaimedat  improvinglong-term
economic performance, social well-being, health,
safety  and  natural  resource  management.
An implementation plan for this policy has been
defined  and  implemented  since  2022.
The efforts and actions undertaken by the Socfinaf
Group  in  thisarea  are  detailedin  a  regularly  updated
dashboard as well as in a separate annual report
(“Sustainable  Development  Report”).
10. Other information
Following the Regulation 2016/347 of the European
Commission of 10 March 2016 which specifies the
modalitiesforupdatinginsiderlists,alistofinsiders
hasbeendrawnupandisupdatedcontinuously.The
persons concerned were informed of their inclusion
on  this  list.
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
37
Statement of compliance
Mr.  Philippe  Fabri,  Director  and  Mr.  Daniel  Haas,  Chief
Financial  Officer,  indicate  that,  to  their  knowledge:
(a)In accordance with the International Financial
ReportingStandards asadoptedbytheEuropean
Union, the consolidated financial statements
prepared for the year ended on 31 December
2023, provideatrueandfair view of the assets
and liabilities, the financial position and the
profits  orlosses  attributableto  Socfinafand  allof
the  entities  included  in  consolidation,  and
(b)the management report presents the following
informationinafairlymanner:theevolutionand
resultsoftheCompany,thefinancial position of
the  Group  and  all  the  entities  that  are  included  in
theconsolidationas wellasa descriptionofthe
main  risks  and  uncertainties  they  face.
38
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Directors’ report on the consolidated financial statements
presented by the Board of Directors to the
Annual General Meeting of the Shareholders of 29 May 2024
Ladies  and  Gentlemen,
1. Consolidated financial statements
Theconsolidatedfinancialstatementsasat31December
2023includethefinancialstatementsofSocfinaf,and
of all subsidiaries and direct and indirect associate
companies.  The  details  are  givenin  Note  2  of  thenotes
to  the  consolidated  financial  statements.
As stated in Note 1 to the consolidated financial
statements,  theconsolidated  financial  statementswere
prepared  inaccordance  withthe  InternationalFinancial
Reporting  Standards(IFRS
G
)  asadopted  bythe  European
Union. Socfinaf (the Group) adopted IFRS
G
for the
firsttime in2005, andimplemented allthe standards
applicable  to  the  Group  as  at  31  December  2023.
Consolidated results
For the 2023 financial year, the result attributable
to the Group of the parent company amounted to
EUR  28.2  million  compared  to  EUR  73.2million  in  2022.
This  results  in  earnings  per  share  ofEUR  1.58  compared
to EUR 4.10 in 2022.
TheconsolidatedrevenueamountedtoEUR563.1million
in2023comparedtoEUR637.3millionin2022(decrease
of  EUR  74.2  million).This  decrease  in  revenue  is  mainly
due to the variation of transactional currency versus
Euro for EUR 74.9 million, the decrease in prices
for EUR 22.5 million whereas higher quantities sold
increased  revenues  for  EUR  17.8  million.
Likewise, the operating profit decreased to
EUR 105.2 million, compared to EUR 175.3 million in
2022.
Other financial income amounted to EUR 22.9 million
compared to EUR 8.7 million in 2022 and consisted
mainly of foreign exchange gains of EUR 22.2 million
compared  to  EUR  8.0  million  in  2022.
Financial expenses amounted to EUR 43.0 million
compared to EUR 41.2 million in 2022 and consisted
mainly of interest expense for EUR 14.7 million
(EUR15.9millionin2022)andforeignexchangelosses
of  EUR  26.8  million  (EUR  24.6  million  in  2022).
Furthermore,thetaxexpensedecreased,withincome
taxes amounting to EUR 36.6 million compared to
EUR  39.8  million  in  2022.
Profit for the period from associates attributable to
the Group decreased to EUR 6.0 million compared to
EUR  11.3  million  in  2022.
Consolidated statement of financial position
The  assets  of  Socfinaf  consist  of:
- Non-currentassetsofEUR600.1millioncompared
toEUR  673.8millionin  2022,indicatinga  decrease
ofEUR73.7millionmainlyduetothedecreaseof
biologicalassets  forEUR-50.3  million,ofproperty,
plantandequipmentforEUR-44.7millionandtothe
increaseofright-of-useassetsforEUR+21.1million;
- CurrentassetsthatamountedtoEUR190.5million
comparedtoEUR229.8millionin2022Thisdecrease
of  EUR  39.3  millionis  mainly  due  tothe  decrease  in
thevalueofinventoryforEUR-17.0millionandin
cash  and  cash  equivalents  for  EUR  -23.9  million.
Theshareholders’equity  amountedtoEUR363.9million
comparedtoEUR368.6millionin2022.Thisdecrease
inthe  shareholder’sequityofEUR  4.7millionismainly
due  tothe  profit  forthe  period:EUR  28.2  million(2022:
EUR73.2million),to the impact ofhyperinflationfor
EUR15.9 millionandtothechange inthetranslation
reserve  for  EUR  -50.9  million.
Based on consolidated shareholders’ equity, the
net value per share
G
attributable to the Group was
EUR 20.40 compared to EUR 20.66 a year earlier. On
31  December  2023,  the  share  price  stood  at  EUR  10.80.
Consolidated management report
Consolidated management report
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
39
Consolidated management report
Current and non-current liabilities decreased to
EUR  332.8million  comparedto  EUR418.3  milliona  year
earlier.
Financial debts decreased to EUR 166.9 million in
2023 compared to EUR 247.4 million in 2022. This
mainly consists of loans to Socfinaf from Socfin for
EUR 80.0 million and advances from shareholders
amounting to EUR 40.0 million, as well as the non-
currentand  currentportion  ofbankloansfor  anamount
of  EUR  34.0  million.
Deferred tax liabilities decreased to EUR 24.6 million
compared to EUR 33.1 million in 2022. Current tax
liabilities decreased to EUR 28.7 million compared to
EUR  40.7  million  in  2022.
Net debt before IFRS
G
adjustments amounts to
EUR 113.4 million versus EUR 176.5 million as at
31  December  2022.
Consolidated cash flows
As at 31 December 2023, cash and cash equivalents
amounted to EUR 36.3 million, a decrease of
EUR16.7  millionfor  theyearcomparedtoa  decreaseof
EUR  3.1  million  in  the  previous  financial  year.
Net cash flows from operating activities amounted
to EUR 147.0 million during the financial year 2023
(EUR 189.5 million in 2022). This resulted mainly
from self-financing capacity of EUR 176.9 million
(EUR  208.4  million  in  2022),  EUR  35.2  million  of  income
tax  paidand  EUR  -9.0million  change  inworking  capital.
Net cash flows from investing activities amounted to
EUR -48.5 million (EUR -53.4 million in 2022). These
activities are largely influenced by acquisitions of
tangible fixed assets amounting to EUR 45.8 million
(EUR  55.1  million  in  2022).
Cash flows from financing activities amounted to
EUR 105.5 million (EUR 138.8 million in 2022), and is
mainly due to net reimbursement of borrowings for
EUR63.1million(compared  toanetreimbursementin
2022  for  EUR  92.6  million)  and  to  thedividends  paid  for
EUR  23.1  million  (EUR  28.9  million  in  2022).
2. FINANCIAL INSTRUMENTS
Financialriskmanagementpoliciesaredescribedinthenotestotheconsolidatedfinancialstatementsofthe
Company  (see  Notes  25  and  34).
3. OUTLOOK 2024
Theresultsforthenextfinancialyearwilllargelydepend
onfactorsthatareexternaltotheGroup’s  management
such  as  theprevailing  political  andeconomic  conditions
in  the  countries  where  the  subsidiaries  are  established,
thechangesin  theprice  ofrubber  andpalmoil,butalso
theprice  ofthe  USdollaragainst  theEuro.  TheGroup,
foritspart,  maintainsitspolicyofkeeping  costpricesas
lowaspossible  andofimprovingitsproduction  capacity.
4. Political and economic environment
The  Company  holds  interestsin  subsidiaries  operating
in Africa.
Giventhe economicandpoliticalinstabilityin 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.
Geopolitical uncertainties
In February 2022, a number of countries (including
the  US,  UKand  EU)  enforcedsanctions  against  certain
entities and individuals in Russia as a result of the
officialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Followingthemilitaryoperations initiated by Russia
against Ukraine on 24 February 2022, potential
additional  sanctions  were  announced.
Consolidated management report
40
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
On7October2023Palestinianmilitantgroupsledby
Hamas launched a coordinated surprise offensive on
Israelresulting inmorethan1,200deaths, primarily
Israelicitizens.Followingthisattack,Israeldeclared
itself  in  a  state  of  war  for  the  first  time  sincetheYom
Kippur  War  in  1973.
Due  to  thegeopolitical  tensions,  since  February  2022,
therehasbeena significant increase involatilityon
the securities and currency markets. The conflicts
havehadasignificantimpact  onthe  financialmarkets,
withmanyinvestors  concernedabout  thepotentialfor
further  escalationand  the  impact  onglobal  trade  and
economic  growth.
Although neither the company’s operations nor
performanceandgoingconcernhavebeensignificantly
impacted  by  theabove  in  2023,  theBoard  of  Directors
continues to monitor the evolving situation and the
possible effects on the financial position and results
of the company.
5. Events after the closing date
There are no material events after the closing date
to mention.
6. Corporate governance
The Board of Directors implements the corporate
governance rules that are applicable in the Grand
Duchy of Luxembourg into the Group’s financial
structure  and  reports.
Furtherinformationonhowtheserulesareimplemented
is  availablein  thecorporate  governancestatement  of
theannual reportandin themanagement reporton
the  Company’s  stand-alone  financial  statements.
7. General internal control system adapted to the group’s specific activities
Segregation of functions
The segregation of the operational,commercialand
financialfunctionsimplementedateachlevelofthe
Group encourages an autonomous model of internal
control.
Ineachoftheirareaofresponsibility,thesedifferent
functions ensure the completeness and reliability
of information. They provide regular updates on
this aspect to local managers and to the Group’s
headquarters, on information related to 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. In particular, they are responsible for
the implementation of an internal control system,
which is adapted not only to the nature and extent
oftheiractivity,butalsototheoptimisationoftheir
operations  and  financial  performances,  the  protection
of  their  assets  and  the  management  of  their  risks.
This autonomy allows the entities to be more
accountable and to ensure consistency between
theirpracticesandthelegalframeworkoftheirhost
country.
Centralised control
The  topmanagement  of  theentities  within  theGroup
adhere to a Human Resources Management policy,
which  is  centralised  at  the  Group’s  headquarters.
Thispolicycontributestothesmoothrunningof the
internalcontrol systemandensures itseffectiveness
through different practices such as autonomous
recruiting processes, the harmonisation of all
segregated functions, as well as annual evaluations
and  training  programs.
Consolidated management report
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
41
The operational, commercial and financial functions
centrallydefineasetofstandard  reportswhichensure
that information originating from the subsidiaries is
presented  homogenously.
Treasury reporting process
The treasury department organises, supervises and
controls the reporting of the subsidiaries’ daily
information and weekly indicators. In particular, it
monitorsthepositionofthecashflow,theevolution
of  net  debt  and  the  expenses  related  to  investments.
Financial reporting process
The financial department organises, supervises
and controls the reporting of monthly accounting,
budgetary and financial information. It distributes
condensed reports used by the Group’s operational
management.
Twiceperyear,itincludesthisinformationinthelong-
term development plan of the subsidiaries. It also
ensures  theimplementation  ofthe  financial  decisions
taken  by  the  subsidiaries’Board  of  Directors.
Preparation of consolidated accounts
The consolidated financial statements are prepared
on a half-yearly basis. On a yearly basis, they are
audited  by  theexternal  auditors  as  partof  a  financial
auditof  subsidiaries,which  coversboth  thestatutory
accountsof  theentitiesinthe  scopeofconsolidation
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  companieswithin  the  scope  ofconsolidation.  It
strictlyadherestotheaccountingstandardsinforce
relatingto  consolidationoperations.It  usesastandard
consolidationtool  toensureanumber  ofprocedures,
such as the secure processing of information
feedback from subsidiaries, the transparency and
relevance of automatic consolidation processes
and the consistency of the accounting aggregates’s
presentationintheannualreport.Lastly,duetothe
complexityofthe accountingstandardsin forceand
the many specificities around their implementation,
theconsolidationservicecentralisestheadjustments
specific to the valuation rules applicable to the
consolidated  financial  statements.
8. Environment and social responsibility
Alongwithitsspecificcommitmenttotransparency,the
responsible  management  policy  embodies  the  Group’s
three pillars of commitment: rural development,
workers and local communities, and environment.
These commitments form the basis of key initiatives
aimedatimprovinglong-term  economicperformance,
social  well-being,health,  safetyand  natural  resource
management.
An implementation plan for this policy was defined
and  implemented  since  2022.
A regularly-updateddashboardaswellasaseparate
annual report (“Sustainable Development Report”)
detailtheeffortsand  actionsundertaken  bythe  Socfin
Group  in  relation  to  this  policy.
The responsible management policy, the dashboard
and the annual sustainable development report are
available  on  the  Group’s  website.
The Board of Directors
42
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
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. (the “Company”) and
its subsidiaries (the “Group”), which comprise the
consolidated statement of financial position as at
31December2023,  andthe  consolidatedstatementof
comprehensive income, the consolidated statement
ofchangesinequityandtheconsolidatedstatement
ofcashflowsfortheyearthenended,andthenotes
to the consolidated financial statements, including
material  accounting  policy  information.
In our opinion, the accompanying consolidated
financialstatementsgiveatrueandfairviewofthe
consolidatedfinancialpositionoftheCompanyasat
31December2023,and of its consolidatedfinancial
performance  and  consolidated  cash  flowsfor  the  year
then  endedin  accordance  withInternational  Financial
Reporting Standards (“IFRS”) as adopted by the
European Union.
Basis for opinion
We conducted our audit in accordance with EU
RegulationN° 537/2014,the Lawof 23July 2016on
theaudit  profession(“Lawof  23July2016”)and  with
InternationalStandardsonAuditing(“ISAs”)asadopted
for Luxembourg by the “Commission de Surveillance
du Secteur Financier” (“CSSF”). Our responsibilities
under the EU Regulation Nº 537/2014, the Law of
23July2016andISAsasadoptedforLuxembourgby
the  CSSF  arefurther  described  in  the  “Responsibilities
ofthe“réviseurd’entreprisesagréé”fortheauditof
theconsolidatedfinancialstatements”sectionofour
report. We are also independent of the Company in
accordancewith theInternationalCodeofEthicsfor
Professional Accountants, including International
Independence Standards, issued by the International
Ethics  StandardsBoard  forAccountants(“IESBACode”)
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
theauditevidencewehaveobtainedissufficientand
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
ourauditoftheconsolidatedfinancialstatementsof
thecurrentperiod.Thesematterswereaddressedin
thecontext  oftheaudit  oftheconsolidated  financial
statements as a whole, and in forming our opinion
thereon,  and  we  do  not  provide  aseparate  opinion  on
these matters.
Valuation of biological assets
Risk identified
As at 31 December 2023, the value of the Group’s
biologicalassetsamountedtoEUR300.0millionoutof
total  assets  of  EUR  797.0  million.
The Group owns biological assets in Africa. These
biological  assets,  whichconsist  mainly  ofoil  palmand
rubber plantations, are valued in accordance with
theprinciplesdefinedinIAS16“Property,Plantand
Equipment”.Theseassetsarerecognisedatcostless
accumulated  depreciationand  any  impairmentlosses.
TheNote  9“Impairmentof  assets”oftheconsolidated
financialstatementsdescribesthemethodologyused
by  Groupmanagement  toassess  whetherthere  isany
indicatorofimpairmentoranyindicatorofimpairment
reversal  at  thebalance  sheetdate.  When  anindicator
is identified, Group management determines the
recoverableamountofthebiologicalassetsandthus
determines the impairment loss or the reversal of
impairment  to  be  recognised,  if  any.
The  indicators  used  by  Group  Management  are:
Auditor’s report on the consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
43
• a decrease or an increase of the listed price of
naturalrubber(TSR20  1stpositiononSGX)andthe
listedprice  ofcrude  palmoil(CIFRotterdam)at  the
balancesheetdatehigherthan15%comparedtoa
five-year average of the prices observed on those
markets
• a  decreaseor  anincrease  of  thesix-month  average
of  the  pricesobserved  of  those  marketshigher  than
15%comparedtoafive-yearaverageoftheprices
observed  on  those  markets
• a decrease or an increase of the twelve-month
averageof  thepricesobservedof  thosemarketsof
morethan15%comparedtoafive-yearaverageof
the  prices  observed  on  those  markets
Forpalm oil,which ismainly soldon localmarkets,
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;
- Significantchangesintheplantationsthatcould
have  a  material  impact  on  future  cash  flows.
Therecoverableamountisdeterminedasthehigher
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  :
- theirsignificanceinrelationtotheGroup’stotal
assets
- theassessment  ofwhetherthere  isanyindicator
of impairment or any indicator of impairment
reversal;  and
- the determination of their recoverable amount
which involves significant judgements and
estimates.
Audit response
Inordertoassessthereasonablenessofanindicator
ofimpairment  oranindicatorofimpairment  reversal
and,whereappropriate,todeterminetherecoverable
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  ofAssets”;
• 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
dataoftheanalysiswiththesourceofthedata
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
impairmentreversal,includingthatsitevisitsof
the  plantations  have  been  carried  out;
• Incaseofidentificationofanindicatorofimpairment
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
andtheaccuracyofanyimpairmentlossorany
impairment  reversal  recorded;
- Analyze the reasonableness of the cash flow
forecastsusedbyGroupManagementtodetermine
the  value  in  use  of  the  biological  assets;
- Assess  thereasonableness  ofthe  assumptions  and
inputs  used  by  Group  management;  and
- Reconcilethekeyinputsusedinthemodelwith
informationauditedbythecomponentsauditors
of  material  subsidiaries.
• Assess whether the disclosures required by IAS 36
“Impairment of Assets” for biological assets are
properlydisclosedinthenotesoftheconsolidated
financial  statements.
Auditor’s report on the consolidated financial statements
44
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Other information
The Board of Directors is responsible for the other
information. The other information comprises the
informationincludedintheconsolidated  management
report and the corporate governance statement but
doesnotincludetheconsolidatedfinancialstatements
and our report of “réviseur d’entreprises agréé”
thereon.
Ouropinionontheconsolidatedfinancialstatements
doesnotcovertheotherinformationandwedonot
express  any  form  of  assurance  conclusion  thereon.
In connection with our audit of the consolidated
financialstatements,ourresponsibilityisto  readthe
otherinformationand,indoingso,considerwhether
the other information is materially inconsistent
with the consolidated financial statements or our
knowledge  obtained  inthe  auditor  otherwise  appears
tobemateriallymisstated.If,basedontheworkwe
have  performed,  we  conclude  that  there  is  a  material
misstatement of this other information, we are
requiredtoreport  thisfact.Wehave  nothingtoreport
in  this  regard.
Responsibilities of the Board of Directors and
of those charged with governance for the
consolidated financial statements
TheBoardofDirectorsisresponsibleforthepreparation
and fair presentation of the consolidated financial
statements  inaccordance  with  IFRSas  adoptedby  the
EuropeanUnion,andforsuchinternalcontrolasthe
BoardofDirectorsdeterminesisnecessarytoenable
thepreparationofconsolidatedfinancialstatements
that are free from material misstatement, whether
due  to  fraud  or  error.
TheBoardofDirectorsisalsoresponsibleforpresenting
and  markingup  the  consolidatedfinancial  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 Company’s ability to continue as a going
concern,  disclosing,as  applicable,mattersrelated  to
going concern and using the going concern basis of
accountingunlesstheBoardofDirectorseitherintends
toliquidatetheCompanyortoceaseoperations,or
has  no  realistic  alternative  but  to  do  so.
Those charged with governance are responsible for
overseeing  the  Company’s  financial  reporting  process.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the financial statements
Theobjectivesofourauditaretoobtainreasonable
assurance about whether the consolidated financial
statements as a whole are free from material
misstatement,whetherduetofraudorerror,andto
issue a report of the “réviseur d’entreprises agréé”
thatincludesouropinion.Reasonableassuranceisa
highlevelof assurance, but isnota guarantee that
an  auditconductedin  accordancewith  EURegulation
N°537/2014, theLawof 23July2016andwith 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
andareconsideredmaterialif,individuallyorinthe
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the  basis  of  these  consolidated  financial  statements.
AspartofanauditinaccordancewithEURegulation
N°537/2014,theLawof23July2016andwithISAs
asadoptedforLuxembourgbytheCSSF,weexercise
professional judgment and maintain professional
skepticism  throughout  the  audit.  We  also:
•Identifyandassesstherisksofmaterialmisstatement
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
toprovideabasisforouropinion.Therisk ofnot
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
asfraudmayinvolvecollusion,forgery,intentional
omissions, misrepresentations, or the override of
internal  control.
•Obtainanunderstandingofinternalcontrolrelevant
to the audit in order to design audit procedures
thatareappropriateinthecircumstances,butnot
for the purpose of expressing an opinion on the
effectiveness  of  the  Company’s  internal  control.
Auditor’s report on the consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
45
•Evaluate the appropriateness of accounting
policiesused  andthereasonablenessofaccounting
estimates and related disclosures made by the
Board  of  Directors.
•Conclude on the appropriateness of Board of
Directors’ useofthegoingconcernbasisofaccounting
and,basedontheauditevidenceobtained,whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’sabilityto continueasa goingconcern.
Ifwe concludethata materialuncertaintyexists,
wearerequiredtodrawattentioninourreportof
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
evidenceobtaineduptothedateofourreportof
the“réviseurd’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 consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlyingtransactions  andevents  inamannerthat
achieves fair presentation.
• Assess whether the consolidated financial
statements have been prepared, in all material
respects,in  compliancewiththerequirements  laid
down  in  the  ESEF  Regulation.
•Obtain sufficient appropriate audit evidence
regardingthefinancialinformation of the entities
andbusinessactivitieswithintheGrouptoexpress
anopinionontheconsolidatedfinancialstatements.
We are responsible for the direction, supervision
and performance of the Group audit. We remain
solely  responsible  for  our  audit  opinion.
We  communicate  withthose  charged  with  governance
regarding, among other matters, the planned scope
andtiming  oftheauditand  significantauditfindings,
including any significant deficiencies in internal
control  that  we  identify  during  our  audit.
Wealsoprovidethosechargedwithgovernancewith
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.
Fromthematterscommunicatedwiththosecharged
with governance, we determine those matters
that were of most significance in the audit of the
consolidatedfinancialstatementsofthecurrentperiod
and  are  thereforethe  key  audit  matters.We  describe
thesematters inourreportunlesslaworregulation
precludes  public  disclosure  about  the  matter.
Report on other legal and regulatory
requirements
We have been appointed as “réviseur d’entreprises
agréé”  by  theGeneral  Meeting  of  theShareholders  on
26 May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments,  is  4  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 pages31to36istheresponsibilityof the Board
of Directors. The information required by article
68ter paragraph (1) letters c) and d) of the law of
19December  2002onthe  commercialandcompanies
register and on the accounting records and annual
accountsofundertakings, asamended,is consistent
with the consolidated financial statements and has
been prepared in accordance with applicable legal
requirements.
Wehave  checkedthecompliance  oftheconsolidated
financial statements of the Company as at 31
December2023withrelevantstatutoryrequirements
setoutintheESEFRegulationthatareapplicableto
thefinancialstatements.FortheCompany,itrelates
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.
Inouropinion,theconsolidatedfinancialstatements
oftheCompanyasat31December 2023, identified
Auditor’s report on the consolidated financial statements
46
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
as Socfinaf-2023-12-31-en.zip, have been prepared,
in all material respects, in compliance with the
requirements  laid  down  in  the  ESEF  Regulation.
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
Company  in  conducting  the  audit.
Ernst  &  Young
Société  anonyme
Cabinet  de  révision  agréé
Anthony  Cannella
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
47
Consolidated financial statements
1. Consolidated statement of financial position
31/12/2023 31/12/2022
Restated (*)
01/01/2022
Restated (*)
ASSETS Note EUR EUR EUR
Non-Current Assets
Right-of-use  assets 4 29,232,550 8,169,573 7,484,998
Intangible  assets 5 991,732 1,449,899 1,958,916
Property,  plant  and  equipment 6 232,787,778 277,533,909 269,676,822
Biological  assets 7 299,988,603 350,244,763 365,903,978
Investments in associates 11 24,499,660 27,288,358 23,619,982
Financial  assets  at  fair  value  through  other
comprehensive income
G
12 4,800,038 300,038 38
Long-term  advances
2,015,903 1,664,769 1,745,719
Deferred  tax  assets 13 2,735,633 4,513,651 9,421,066
Other non-current assets
3,089,715 2,619,576 1,743,807
600,141,612 673,784,536 681,555,326
Current Assets
Inventories 16 88,736,703 105,769,814 92,844,873
Current  biological  assets 2,129,780 3,005,618 2,423,966
Trade  receivables 17 27,235,836 23,519,223 28,185,332
Other  receivables 18 23,131,220 21,440,996 8,995,522
Current  tax  assets 14 9,549,095 12,438,610 13,378,526
Cash  and  cash  equivalents 19 39,741,654 63,638,033 63,091,772
190,524,288 229,812,294 208,919,991
Assets  classified  as  held  for  sale
38
6,313,418 0 0
TOTAL ASSETS 796,979,318 903,596,830 890,475,317
(*)For  further  details,  refer  to  Note  3.
The  accompanying  notes  are  an  integral  part  of  these  consolidated  financial  statements.
Consolidated financial statements
48
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
31/12/2023 31/12/2022
Restated (*)
01/01/2022
Restated (*)
EQUITY AND LIABILITIES Note EUR EUR EUR
Equity attributable to the owners of the Parent
Share  capital 20 35,673,300 35,673,300 35,673,300
Share premium 20 87,453,866 87,453,866 87,453,866
Legal  reserve 21 3,567,330 3,567,330 3,567,330
Consolidated  reserves
330,567,274 239,380,868 166,418,604
Translation  reserves
-121,624,614 -70,699,935 -63,611,554
Profit  /  (loss)  for  the  period
28,248,339 73,185,734 72,028,965
363,885,495 368,561,163 301,530,511
Non-controlling interests
G
10 100,045,115 116,745,946 113,878,970
Total Equity
463,930,610 485,307,109 415,409,481
Non-Current Liabilities
Deferred  tax  liabilities 14 24,585,197 33,149,100 32,481,370
Employee  Benefits  Obligations 22 12,501,274 12,366,549 12,054,536
Long-term  debt,  net  of  current  portion 23 102,778,317 163,937,129 240,634,699
Long-term  lease  liabilities 4 24,950,880 8,674,141 8,285,305
Other  payables 24 1,332,110 1,650,571 1,445,937
166,147,778 219,777,490 294,901,847
Current Liabilities
Short-term  debt  and  current  portion  of  long-
term  debt
23 64,103,627 83,477,325 75,991,471
Short-term  lease  liabilities 4 2,778,042 1,532,064 1,105,090
Trade  payables
24
46,397,043 50,186,437 43,847,861
Current  tax  liabilities 14 28,701,137 40,651,438 30,408,824
Provisions
597,934 622,480 337,462
Other  payables 24 24,038,868 22,042,487 28,473,281
166,616,651 198,512,231 180,163,989
Liabilities  associated  with  assets  classified  as
held  for  sale
38 284,279 0 0
TOTAL EQUITY AND LIABILITIES 796,979,318 903,596,830 890,475,317
(*)  For  further  details,  refer  to  Note  3.
The  accompanying  notes  are  an  integral  part  of  these  consolidated  financial  statements.

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
49
2. Consolidated income statement
2023 2022
Restated (*)
Note EUR EUR
Revenue 33 563,066,846 637,341,934
Change  in  inventories  of  finished  products  and  work  in  progress
9,185,214 -5,109,712
Other  operational  income
33
11,671,635 5,844,939
Raw  materials
G
and  consumables  used
33
-198,032,506 -178,603,713
Other  expenses
33
-118,502,853 -128,138,069
Staff  costs 26 -78,909,883 -72,776,228
Depreciation  and  impairment  expense 8 -68,590,445 -58,213,723
Other  operating  expenses
33
-14,677,733 -25,015,835
Operating profit / (loss)
105,210,275 175,329,593
Other  financial  income
27
22,852,327 8,653,915
Gain  on  disposals
153,578 76,466
Loss  on  disposals
-342,369 -1,833,410
Financial  expenses 28 -43,023,377 -41,163,373
Profit / (loss) before taxes
84,850,434 141,063,191
Income  tax  expense 15 -36,557,147 -39,796,407
Deferred  tax  (expense)  /  income 13 -4,971,264 -6,528,620
Share  of  the  Group  in  the  result  from  associates 11 6,002,745 11,297,778
Profit / (loss) for the period
49,324,768 106,035,942
Profit / (loss) attributable to non-controlling interests
G
21,076,429 32,850,208
Profit / (loss) attributable to the owners of the Parent
28,248,339 73,185,734
Basic earnings per share undiluted 1.58 4.10
Number of Socfinaf shares
17,836,650 17,836,650
Basic  earnings  per  share
1.58 4.10
Diluted  earnings  per  share
1.58 4.10
(*)For  further  details,  refer  to  Note  3.
The  accompanying  notes  are  an  integral  part  of  these  consolidated  financial  statements.

Consolidated financial statements
50
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
3. Consolidated statement of comprehensive income
31/12/2023 31/12/2022
Restated (*)
Note EUR EUR
Profit / (loss) for the period
49,324,768 106,035,942
Other comprehensive income
G
Actuarial  gains  /  (losses) 22 -1,468,299 902,556
Deferred  tax  on  actuarial  losses  and  gains
602,097 -187,624
Subtotal of items that cannot be reclassified to profit or loss
-866,202 714,932
Gains  /  (losses)  on  exchange  differences  on  translation  of  subsidiaries  (**)
-62,323,635 -6,900,555
Share  of  other  comprehensive  income  related  to  associates
11
-337,884 443,736
Subtotal of items eligible for reclassification to profit or loss
-62,661,519 -6,456,819
Total other comprehensive income
-63,527,721 -5,741,887
Total comprehensive income
-14,202,953 100,294,055
Comprehensive income attributable to non-controlling interests
G
6,403,098 32,388,357
Comprehensive income attributable to the owners of the Parent
-20,606,051 67,905,698
(*)For  further  details,  refer  to  Note  3.
(**)
Ofwhich  EUR-33.1millionrelatingto  OkomuandEUR  -13.6 million  relating  toPSG  (followingthe  important
devaluation  of  the  Naira  and  the  Cedi  during  the  period,  refer  to  Note  1.9).
The  accompanying  notes  are  an  integral  part  of  these  consolidated  financial  statements.

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
51
4. Consolidated statement of cash flows
2023 2022
Restated (*)
Note EUR EUR
Operating activities
Profit  /  (loss)  attributable  to  the  owners  of  the  Parent
28,248,339 73,185,734
Profit  /  (loss)  attributable  to  non-controlling  shareholders
21,076,429 32,850,208
Income from associates 11 -6,002,745 -11,297,777
Dividends  received  from  associates 11 8,292,174 7,126,982
Fair  value  of  agricultural  production 9,659,361 -5,789,099
Other  adjustments  having  no  impact  on  cash  position
4,310,632 -1,202,240
Depreciation  and  impairment  expense 8 68,590,445 58,213,723
Provisions  and  allowances
1,011,683 7,278,228
Net  loss  on  disposals  of  assets
188,791 1,758,494
Income  tax  expense  and  deferred  tax 41,528,411 46,325,027
Cash flows from operating activities
176,903,520 208,449,280
Interest expense 27,  28 14,238,101 15,590,970
Income tax paid 15 -35,155,555 -39,796,406
Change  in  inventory
-5,993,340 -8,943,177
Change  in  trade  and  other  receivables
-14,979,594 -13,221,521
Change  in  trade  and  other  payables
9,116,206 29,213,136
Change  in  accruals  and  prepayments
2,830,778 -1,758,263
Change in working capital requirement
-9,025,950 5,290,175
Net cash flows from operating activities
146,960,116 189,534,019
Investing activities
Acquisitions  /  disposals  of  intangible  assets
-15,444 -32,003
Acquisitions  of  property,  plant  and  equipment  and  biological  assets 6,  7 -45,765,516 -55,144,750
Disposals  of  property,  plant  and  equipment 1,553,935 1,655,010
Acquisitions  /  disposals  of  financial  assets
12
-4,741,780 134,933
Interest  received 27 419,665 0
Net cash flows from investing activities
-48,549,140 -53,386,810
Financing activities
Dividends  paid  to  non-controlling  shareholders
10
-23,106,115 -28,941,422
Proceeds  from  borrowings 23 3,564,029 7,030,288
Repayment  of  borrowings
23
-66,681,107 -99,581,546
Repayment  of  lease  liabilities
23
-4,623,622 -1,737,556
Interest  paid
28
-14,657,766 -15,590,970
Net cash flows from financing activities
-105,504,581 -138,821,206
Effect  of  exchange  rate  fluctuations
-9,216,071 -446,315
Effect  of  cash  linked  to  assets  held  for  sale
38
-361,169 0
Net cash flow
-16,670,845 -3,120,312
Cash  and  cash  equivalents  as  at  1  January 19 52,942,133 56,062,445
Cash  and  cash  equivalents  as  at  31  December 19 36,271,288 52,942,133
Net increase / (decrease) in cash and cash equivalents
-16,670,845 -3,120,312
(*)For  further  details,  refer  to  Note  3.
The  accompanying  notes  are  an  integral  part  of  these  consolidated  financial  statements.

Consolidated financial statements
52
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
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
G
TOTAL
EQUITY
Balance as at 1 January 2022 – Restated (*)
35,673,300 87,453,866 3,567,330 -63,611,554 238,447,569 301,530,511 113,878,970 415,409,481
Profit  /  (loss)  for  the  period
73,185,734 73,185,734 32,850,208 106,035,942
Actuarial  (losses)  /  gains
620,360 620,360 94,572 714,932
Foreign  currency  translation  adjustments
-6,344,132 -6,344,132 -556,423 -6,900,555
Share in other comprehensive income
G
from associates
443,736 443,736 443,736
Total comprehensive income
-6,344,132 74,249,830 67,905,698 32,388,357 100,294,055
Dividends  (Note  10)
0 0 -22,456,156 -22,456,156
Interim  dividends  (Note  10)
0 0 -6,485,266 -6,485,266
Other movements
-744,249 -130,797 -875,046 -579,959 -1,455,005
Transactions with shareholders
-744,249 -130,797 -875,046 -29,521,381 -30,396,427
Balance as at 31 December 2022 – Restated (*)
35,673,300 87,453,866 3,567,330 -70,699,935 312,566,602 368,561,163 116,745,946 485,307,109
Balance as at 1 January 2023
35,673,300 87,453,866 3,567,330 -70,699,935 312,566,602 368,561,163 116,745,946 485,307,109
Profit  /  (loss)  for  the  period
28,248,339 28,248,339 21,076,429 49,324,768
Actuarial  (losses)  /  gains
-490,124 -490,124 -376,078 -866,202
Foreign  currency  translation  adjustments
-48,026,382 -48,026,382
-14,297,253
-62,323,635
Transfer between reserves
-2,898,297 2,898,297 0 0
Share in other comprehensive income
G
from associates
-337,884 -337,884 -337,884
Total comprehensive income
-50,924,679 30,318,628 -20,606,051 6,403,098 -14,202,953
Dividends  (Note  10)
0 0 -20,924,672 -20,924,672
Interim  dividends  (Note  10)
0 0 -2,181,443 -2,181,443
Hyperinflation
15,923,481 15,923,481 15,923,481
Other movements
6,902 6,902 2,186 9,088
Transactions with shareholders
15,930,383 15,930,383 -23,103,929 -7,173,546
Balance as at 31 December 2023
35,673,300 87,453,866 3,567,330 -121,624,614 358,815,613 363,885,495 100,045,115 463,930,610
(*)For  further  details,  refer  to  Note  3.
The  accompanying  notes  are  an  integral  part  of  these  consolidated  financial  statements.

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
53
6. Notes to the consolidated financial statements
Note 1. Overview and accounting policies
1.1. Overview
Socfinaf  S.A. (the“Company”)wasincorporatedon22October
1961. Its corporate purpose qualifies it as a holding company
“soparfi”
G
(terms  havinga
G
are  explainedpart  “Glossary”  at  the
endoftheannualreport) sincetheAnnualGeneralMeeting of
10  January2011.  Theregistered  officeis  establishedat 4,  avenue
Guillaume,  L-1650  in  Luxembourg.
The main activity of the Company and its subsidiaries (the
“Group”) is the management of a portfolio of holdings that
mainlyfocusontheexploitationoftropicaloilpalmandrubber
plantations  inAfrica.
Socfinaf is controlled by Société   Financière   des   Caoutchoucs,
abbreviated as “Socfin” which is the largest entity that
consolidates.Theregisteredofficeofthelattercompanyisalso
located  at  4,  avenue  Guillaume,  L-1650  in  Luxembourg.
TheCompany  islistedon  the Luxembourg Stock  Exchangeunder
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
FinancialReporting  Standards(IFRS
G
)as  adoptedby  theEuropean
Union. The   consolidated   financial   statements   are   presented   in
euros  and  rounded  to  the  nearest  whole  number,  the  euro  being
the  functional  currency   of  the  parent   company  Socfinaf  and   of
the  Group’s  presentation  currency.
On 27 March 2024, the Board of Directors approved the
consolidated  financial  statements.
InconformitywiththecurrentlegislationexistingintheGrand
Duchy  ofLuxembourg,  thefinancial  statementswill  beapproved
by the shareholders during the Annual General Meeting. The
official  versionofthese  financialstatements  isthe  ESEF
G
version
available  with  the  OfficiallyAppointed  Mechanism  (OAM)  tool.
New standards and amendments issued but not yet effective
on 1 January 2023:
The Group does not expect the adoption of the standards and
amendmentsdescribedbelowtohave amaterialimpact onits
consolidated financial statements, nor does it anticipate the
early adoption of new accounting standards, amendments and
interpretations.
- InJanuary2020andOctober2022,theIASBissuedamendments
to paragraphs 69 to 76 of IAS 1 “Presentation of Financial
Statements” to specify the requirements for classifying
liabilities  as  current  or  non-current.  The  amendments  clarify:
• What  is  meant  by  a  right  to  defer  settlement
• That arighttodefer must exist at the endofthereporting
period
• Thatclassificationisunaffectedbythelikelihood  thatan  entity
will  exercise  its  deferral  right
• Thatonlyifanembeddedderivativeinaconvertibleliability
is  itself  an  equity  instrument  would  theterms  of  a  liability  not
impact  its  classification
In addition, a requirement has been introduced to require
disclosure when a liability arising from a loan agreement
is classified as non-current and the entity’s right to defer
settlementis  contingentoncompliance  withfuturecovenants
within twelve months. The amendments are effective for
annualreportingperiods  beginningonorafter1January  2024
and  must  be  applied  retrospectively.
- In  September  2022,  the  IASB  issued  amendments  to  IFRS
G
16 to
specify  the  requirementsthat  aseller-lessee  uses  inmeasuring
theleaseliabilityarisinginasaleandleasebacktransaction,
to ensure the seller-lessee does not recognise any amount
ofthegainorlossthatrelatestotherightofuse
G
it retains.
The amendments are effective for annual reporting periods
beginning on or after 1 January 2024 and must applied
retrospectively to sale and leaseback transactions entered
into after the date of initial application of IFRS
G
16. Earlier
application  is  permitted  and  that  fact  must  be  disclosed.
New IFRS
G
standards, amendments and interpretations not
yet endorsed by the European Union:
The Group does not expect the adoption of the standards and
amendmentsdescribedbelowtohave amaterialimpact onits
consolidated financial statements, nor does it anticipate the
early adoption of new accounting standards, amendments and
interpretations.
Consolidated financial statements
54
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
- On 25 May 2023, the IASB issued amendments to
IAS
G
7andIFRS
G
7“SupplierFinanceArrangements”:
the amendments clarify the characteristics of
an arrangement for which an entity is required
to provide the information. They also require
entities to disclose information that allows users
toassesshowsupplierfinancearrangementsaffect
an entity’s liabilities, cash flows and exposure to
liquidityrisk.Suchinformationmayconsistofthe
termsandconditionsof  thesearrangements  andthe
carryingamountofthesupplierfinancearrangement
financialliabilities.Theamendmentswillbeapplied
to annual reporting periods beginning on or after
1  January  2024,  with  early  adoption  permitted.
- On 25 August 2023, the IASB issued amendments
to IAS
G
21 “Lack of Exchangeability”. The
amendments clarify how an entity should assess
whether a currency is exchangeable, and how
it should determine a spot exchange rate when
exchangeabilityis  lacking.Theyalso  explainhow  an
entityshouldspecifyinformationdisclosuressothat
theyhelpusersoffinancialstatementsunderstand
theimpactof  acurrencythatis  notexchangeable.
The amendments will be applied prospectively
to annual reporting periods beginning on or after
1  January  2025,  with  early  adoption  permitted.
1.3. Presentation of the consolidated financial
statements
Theconsolidated financialstatements arepresented
in  euros  (EUR  or  €).
Theyare preparedbased onhistoricalcostwiththe
exception  of  the  following  assets:
- Biological  assets  (current)  (IAS  2,  IAS  41),  securities
measuredatfairvaluethroughothercomprehensive
income
G
,  all  of  which  are  recognised  at  fair  value;
- Property,  plantandequipment  acquiredas  partof  a
businesscombination  (IFRS3),whichare  measured
initiallyattheirfairvalueatthedateofacquisition.
Theaccountingprinciplesandrulesareapplied ina
consistentand  permanentway  withintheGroup.  The
consolidated financial statements are prepared for
the accounting year ending on 31 December 2023,
and  are  presented  before  theAnnual  General  Meeting
of shareholders that approves the allocation of the
parent  company’s  income.
Asof1January2023,  theGroup  adoptedthe  following
amendments without any material impact on the
Group’s  consolidated  financial  statements:
- IFRS  17  “Insurance  Contracts”  andits  amendments:
establishes principles for the recognition,
measurement and presentation of insurance
contracts. Under IFRS 17, insurance performance
shouldbemeasuredatitscurrentexecutionvalue
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.
- 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.
- Amendments to IAS 8 Definition of Accounting
Estimates: the amendments to IAS 8 clarify
the distinction between changes in accounting
estimates, changes in accounting policies and the
correctionoferrors.Theyalsoclarifyhowentities
use  measurement  techniquesand  inputs  todevelop
accounting  estimates.
- Amendments  toIAS  1and  IFRSPractice  Statement2
Disclosureof  AccountingPolicies:theamendments
to IAS 1 and IFRS Practice Statement 2 Making
Materiality Judgements provide guidance and
examples to help entities apply materiality
judgements to accounting policy disclosures. The
amendmentsaimtohelpentitiesprovideaccounting
policy  disclosures  that  are  more  useful  by  replacing
the requirement for entities to disclose their
‘significant’accounting  policieswith  a  requirement
todisclosetheir‘material’accountingpoliciesand
addingguidanceon  howentitiesapplytheconcept
of  materiality  in  making  decisions  about  accounting
policy  disclosures.
- AmendmentstoIAS12“InternationalTaxReform–
PilarTwoModelRules”:on 23May2023, the IASB
issued amendments to IAS 12 in order to respond
to concerns about the potential implications of
theOECDPillar  Twomodelrules.Theamendments
introduce,inIAS12,a mandatory exception from
recognisinganddisclosing deferredtaxassets and
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
55
liabilitiesrelated  toPillarTwoincome  taxeson  the
onehand,  anddisclosurerequirements  ontheother.
The  latterareintended  foraffected  entitiestohelp
users of the financial statements have a better
understanding  ofthe  exposure  toPillar  Two  income
taxesthatarisefromthatlegislation,inparticular
beforeitseffectivedate.  Theconsequencesofthis
amendment  are  further  disclosed  in  Note  13.
1.4. Consolidation principles
The consolidated financial statements include the
financialstatements ofthe parentcompanySocfinaf
aswell asthoseofthecompaniescontrolledbythe
parent (“subsidiaries”) and those of the companies
in which Socfinaf has exercised significant influence
(“associates”),  all  of  which  constitute  the  “Group”.
Allcompaniesincludedinthescopeofconsolidation
as of 31 December 2023 close their accounts on
31  December.
a) Subsidiaries
In accordance with IFRS 10, an investor has control
when  it  fulfills  three  conditions:
1)  It  holds  power  over  the  entity;
2)It is entitled to or is exposed to variable returns
from  its  involvement;
3)It  has  theability  to  use  itspower  over  theentity  to
affect  returns.
Currently,theGroup  holdsthemajorityofthe  voting
rights  in  the  entities.
Income and expenses from subsidiaries acquired or
soldduringtheyearareincludedintheconsolidated
income statement, respectively, from the date of
acquisition  to  the  date  of  disposal.
Profit  or  loss  and  components  of  other  comprehensive
income are attributed to the equity holders of
the parent of the Group and to the non-controlling
interests
G
,even ifthisresults inthenon-controlling
interests
G
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  the  Group.
All intra-group balances and transactions are
eliminated  upon  consolidation.
If the Group loses control over a subsidiary, it
derecognisesthe relatedassets(includinggoodwill),
liabilities, non-controlling interest
G
and other
components of equity. Any residual gain or loss is
recognised in profit or loss, while any investment
retained  is  recognised  at  fair  value.
b) Investments in associates and joint ventures
An associate is a company over which the Group
exercisessignificantinfluencethroughitsparticipation
in the financial and operational decisions of this
company,  but  over  which  it  has  no  control.  Significant
influence  ispresumed  whenthe  Groupholds,  directly
or indirectly through its subsidiaries, between 20%
and  50%  ofthe  voting  rights.Ajoint  venture  isa  joint
arrangement whereby the parties that have joint
controlofthearrangementhaverightstothenetassets
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  andjoint  venturesare  accountedfor  using
the equity method. Under this method, the Group’s
interestintheassociateandjointventureisinitially
recognised at cost in the statement of financial
positionandsubsequently adjusted torecognisethe
Group’s share of movements in profit and loss and
other comprehensive income
G
.
The profit or loss statement reflects the Group’s
share  in  the  results  of  the  associate  or  joint  venture’s
operations. Any change in other comprehensive
income
G
of those investees is presented as part of
the  Group’s  othercomprehensive  income
G
.  Unrealised
gainsandlossesresultingfromtransactionsbetween
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
significantinfluencebeginsuntilthedate when this
influence ceases. The carrying amount of positive
goodwillthatresultsfromtheacquisitionofassociates
andjoint  venturesisincludedin  thecarryingamount
of the investment and is not tested for impairment
Consolidated financial statements
56
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
separately. An impairment test is performed if an
objective indication of impairment is identified.
Impairmentis  recognised,if  necessary,inthe  income
statementundertheheading“ShareoftheGroupin
the  result  from  associates”.
The list of subsidiaries and associated companies
(including joint ventures) of the Group is presented
in Note 2.
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 of an
interpretation or if it permits more reliable and
relevantinformation.Changesinaccountingpolicies
areaccountedforretrospectively,exceptinthe  case
of transitional provisions specifictothestandardor
interpretation.A materialerror,when discovered,is
also  adjusted  retrospectively.
Uncertaintiesinherent  totheactivity  requirethe  use
of estimates when preparing financial statements.
The estimates are based on judgments intended to
give a reasonable assessment of the latest reliable
informationavailable.Anestimateisrevisedtoreflect
changesincircumstances,newinformationavailable
and  the  effects  of  experience.
1.6. Business combinations
IFRS 3 “Business Combinations” provides the
accountingbasisforrecognisingbusinesscombinations
andchangesininterestsinsubsidiariesafterobtaining
control.
For each business combination, the Group elects
whether to measure the non-controlling interests
G
intheacquireeatfairvalueorattheproportionate
share  of  the  acquiree’s  identifiable  net  assets.
Changes in interest in a subsidiary that do not
resultinloss of controlareaccounted forasequity
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
G
,  thefair  valueofprevious  equity
investments and the fair value of identifiable assets
andliabilities  andcontingentliabilitiesoftheacquiree.
Whendisposing  ofa  subsidiary,  theresidual  amountof
goodwillattributabletothesubsidiaryisincludedin
the  calculation  of  the  disposal’s  result.
1.8. Gain on a bargain purchase
Gainonabargainpurchaserepresentstheexcessof
theGroup’sinterestinthe fair valueofidentifiable
assetsand  liabilities,andthe  contingentliabilitiesof
a  subsidiaryor  associateon  the  costof  acquisitionon
the  acquisition  date.
Insofar as gain on a bargain purchase remains after
consideringandreassessingthefairvalueofidentifiable
assetsandliabilitiesas  wellas  ofcontingent  liabilities
ofasubsidiaryorassociate,  itis  recogniseddirectly  as
an income in the income statement.
1.9. Foreign currency conversion
In the financial statements of Socfinaf and of each
subsidiary,transactionsinforeigncurrencyarerecorded,
uponinitialrecognition,in the functionalcurrencyof
thecompanyconcerned.Theexchangerateinforceis
appliedon thetransactiondate.At closing,monetary
assets  andliabilities  denominatedin  foreigncurrencies
are converted on the last day of the year. Gains and
losses arising from the realisation or translation of
monetaryitemsdenominatedinforeigncurrenciesare
recorded  in  the  income  statement  for  the  year.
Onconsolidation,theassetsand  liabilitiesof  companies
whoseaccountsareheldinacurrencyotherthanthe
euro are translated into euros at the exchange rate
prevailing on the closing date. Income and expenses
areconvertedinto  eurosattheaverageexchangerate
forthe  year.  Anyexchange  differencesareclassified  as
equity under “Translation differences”. In the event
of a disposal, the translation differences relating to
thecompanyconcernedarerecognisedintheincome
statement  for  the  year  in  which  the  sale  occurred.
Goodwill and fair value adjustments arising on the
acquisition  of  a  foreignentity  are  treated  as  assets  and
liabilities of the foreign entity and translated at the
closing  rate.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
57
The  following  exchange  rates  have  been  used  for  the  conversion  of  the  consolidated  financial  statements:

| Closing rate | Average rate
1 euro equals to: | 31/12/2023 | 31/12/2022 | 2023 | 2022
Euro | 1.000 | 1.000 | 1.000 | 1.000
CFA  franc | 655.957 | 655.957 | 655.957 | 655.957
Ghanaian  cedi | 13.1274 | 9.1472 | 12.0698 | 8.4184
Nigerian  naira | 994.55 | 478.92 | 661.63 | 445.11
Dobra  of  São  Tomé | 24.50 | 24.50 | 24.50 | 24.50
Congolese  franc | 2,961 | 2,151 | 2,514 | 2,103
American  dollar | 1.1050 | 1.0666 | 1.0826 | 1.0479

1.10. Intangible assets
Intangibleassetsarestatedattheiracquisitioncostless
accumulated  depreciation  and  any  impairment  losses.
Amortisationisappliedonastraight-line  basisbased  on
anestimateof  theusefullifeoftheasset  inquestion.
Intangibleassetsarenot  subjecttorevaluation.When
the  recoverablevalue  of  anasset  islower  thanits  book
value,  thelatter  is  reducedto  reflectthis  loss  invalue.
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 G | Length  of  the  concessions G

Amortisationstartsfromthe date whentheassetis
available  to  use.
Gains or losses arising from derecognition of assets
(i.e. the difference between the disposal proceeds
and  thecarrying  amountof  the  asset)are  includedin
the  income  statement  when  assets  are  derecognised.
1.11. Property, plant, equipment
Tangible  fixed  assetsare  recorded  at  their  acquisition
cost less accumulated amortisation and any
impairment  losses.
Property,plant  andequipmentinprogressiscarriedat
cost  less  any  identified  impairment.
Depreciation is applied on a straight-line basis,
accordingtoanestimate of the usefullifefor each
significantcomponentoftheassetin  question.When
the recoverable value of an asset is lower than its
bookvalue,thelatterisreducedto reflectthisloss
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

Depreciationstartsfromthedatethattheassetsare
available  to  use.
Land  is  not  subject  to  depreciation.
Gainsorlossesarisingfromthederecognitionofassets
(i.e. the difference between the disposal proceeds
and  thecarrying  amountof  the  asset)are  includedin
the  income  statement  when  assets  are  derecognised.
1.12. Bearer biological assets
TheGrouphasbiologicalassetsinAfrica.Bearerplants,
mainlyconsistingofpalmoilandrubberplantations,
are valued by using the cost model, according to
theprinciplesdefinedinIAS16“Property,plantand
equipment”.
Biologicalassetsatthetimeofharvest,inparticular
for  palmbunches,  palmoil  andrubber,are  evaluated
according to the principles defined by IAS 41
“Agriculture”.
Bearer biological assets
Producer  biologicalassets  arerecorded  atacquisition
cost, less accumulated amortisation and any
impairment  losses.
Consolidated financial statements
58
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Depreciationisappliedaccordingtothestraight-line
method  based  on  an  estimateof  the  useful  life.  When
the recoverable amount of an asset is less than its
carryingamount,thecarryingamount 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

Thedepreciation  startingdateis  thedateoftransfer
of biological assets in production (i.e. asset being
mature). This transfer takes place in the fourth
yearafterpalmoiltree plantingandintheseventh
yearafterrubbertreeplanting.Foreachentity,the
operating period can be adapted according to the
particular  circumstances.
Agricultural production
Agricultural production at harvest is valued at fair
valuelesstheestimatedcosts  necessarytocomplete
the  sale.
There are no observable data for agricultural
production (palm harvest, latex). The World Bank
publishes price forecasts for dry rubber
G
(finished
product).TheseforecastsarebasedontheRSS3
G
grade
(smokedsheet
G
)thatis notproduced bytheGroup.
Lastly, and even more so, there are no observable
prospectivedatarelatingtotheGroup’sagricultural
production. The price of a standard product in a
global  marketis  not  sufficientlyrepresentative  ofthe
economicrealityinwhichthevariousentitiesofthe
Group  intervene.This  pricecan  hencenot  beused  as
a  reference  for  valuation.
Asaresult,eachentitydeterminesthefairvalueof
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)  asbiological  assets,inaccordance  withIAS  41
principles. This produce is measured at fair value
untilthepointofharvest.Any  resultantgains  orlosses
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
identifiedassetforaperiodoftimeinexchangefor
consideration.
The Group applies a single recognition and
measurementapproachforallleases,exceptforshort-
term leases and leases of low-value assets (mainly
IT equipment), for which payments associated are
recognised as an expense in the income statement.
TheGrouprecognises lease liabilitiestomake lease
payments and right-of-use assets representing the
right  to  use  the  underlying  assets.
The Group leases offices and agricultural land for
termsrangingfrom1to99years,aswellasvehicles
andequipmentfortermsrangingfrom1monthto5
years.
The Group’s lease contracts are standard contracts
thatdonotincludeadditionalnon-leasingcomponents,
exceptforsomevehicleleasecontractsthatinclude
a maintenance service. The Group has used the
practicalexpedientthat  allowsthenon-segregationof
theleasecomponentfromthenon-leasecomponent
for these contracts.
Assets and liabilities related to lease contracts are
initially measured at the present value of the fixed
payments,including  in-substancefixedpaymentsless
any lease incentives receivable. Lease payments to
bemadeunderreasonablycertainextensionoptions
arealso  includedin  themeasurement  oftheliability.
Tothispurpose,themanagementconsidersallfacts
and circumstances that may create an incentive to
exercisearenewaloptionor  nottoexerciseanearly
terminationoption.Theleaseliabilityisremeasured
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 unknown for all the
Group’scontracts,theincrementalborrowingratewas
used  todiscount  thelease  payments.The  incremental
borrowing  rateis  therate  thatthe  lesseewould  have
to  pay  toborrow,  for  a  similar  term  andwith  a  similar
guarantee, the funds necessary to acquire an asset
whose  value  is  similar  tothe  asset  under  the  right-of-
use  in  a  similar  economic  environment.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
59
In determining the incremental borrowing rate, the
Group:
- where possible, uses the most recent financing
received by the lessee as a starting point, which
was adjusted to reflect the change in financing
conditions  since  the  financing  was  received;
- uses a build-up approach starting with a risk-free
ratewhichwas  adjustedforcreditriskforleases  for
entities  with  no  recent  external  financing;
- makes lease specific adjustments (such as term,
country,  currency  and  collateral).
Thediscountratesusedbythe  Grouprangebetween
1.75%  and  19.9%.
Leasepaymentsareallocated  betweentherepayment
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  a
straight-line  basis  over  the  shortest  of  useful  life  and
lease  term.
The Group applies IAS 36 to determine whether a
right-of-use asset is impaired and recognises any
impairmentlossasdescribedin Note 9: Impairment
of assets.
1.14. Impairment of assets
Goodwillisnotamortised,butistestedforimpairment
at least once a year, and whenever there is an
indication  of  impairment.
Inaddition,  ateach  reportingdate,theGroupreviews
the carrying amounts of its intangible and tangible
assets, including its organic producing assets, in
ordertoassess whetherthereis anyindicationthat
its assets may have lost value. If there is such an
indication, the recoverable amount of the asset is
estimatedto  determine,if  applicable,the  amountof
thelossor  impairment.Therecoverableamountis  the
highest  ofthe  fairvalueless  thecoststosell  theasset
and  the  value  in  use.
Thefairvalueofproperty,plantandequipmentand
intangible assets is the present value of estimated
futurecashflowsexpectedfromtheuseofanasset
or cash-generating unit. When it is not possible to
estimate  therecoverable  amountof  anisolated  asset,
theGroup  determinestherecoverable  amountofthe
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.
Whenanimpairmentlosswhichwasrecognisedina
priorperiodno longerexistsor needstobe written
down, the carrying amount of the asset (cash-
generating unit) is increased to the extent of the
revised  estimate  of  itsrecoverable  amount.  However,
this increased carrying amount may not exceed the
carryingamountthatwouldhavebeendeterminedif
no  impairmentloss  hadbeen  recognised  forthe  asset
(cash-generating unit) in prior years. The reversal
of an impairment loss is recognised immediately in
income in the income statement.
Itisnotpossibletosubsequentlyreverseanimpairment
loss  recorded  on  goodwill.
1.15. Inventories
Inventoriesare  recordedat  thelower  ofcost  andnet
realisable value. Cost includes direct material costs
and, if applicable, direct labour costs and directly
attributable  overhead  costs.
Wherespecificidentificationisnotpossible,thecost
is determined based on the weighted average cost
method.Netrealisablevalueistheestimatedselling
price  intheordinary  courseof  businesslessestimated
costsofcompletionandtheestimatedcostsnecessary
to  complete  the  sale  (primarily  selling  expenses).
Impairmentorlossoninventorytonetrealisablevalue
is  recognised  asan  expense  in  the  periodin  which  the
impairment  or  loss  occurred.
As explained in Note 1.12. Bearer biological assets,
agriculturalproductionismeasuredatfairvalueless
estimated  costs  necessary  to  make  the  sale.
1.16. Trade receivables
Tradereceivablesarevaluedattheirnominalvalueand
donotbearinterest.TheGroupappliesa simplified
approachandrecordsaprovisionforexpectedlosses
over the life of the receivables. This provision for
lossesisan  amountthattheGroup  considersareliable
Consolidated financial statements
60
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
estimate  of  theinability  of  its  customersto  make  the
required  payments  (refer  to  Note  34).
1.17. Cash and cash equivalents
Cash and cash equivalents include cash, demand
deposits,short-termdepositsoflessthan3months,
as  well  asinvestments  that  aresubject  to  a  negligible
risk  of  changein  value  and  areeasily  convertible  into
aknownamountofcash,havingamaturityofthree
months  or  less.
1.18. Financial instruments
Financial assets and liabilities are recognised in the
consolidated statement of the financial position
whentheGroupbecomesapartytothecontractual
provisions of the instrument.
Loans and borrowings
The Group’s business model for financial assets
management describes the way it manages its
financialassetsinordertogeneratecashflows.The
business model determines whether cash flows will
resultfromthecollectionofcontractualcashflows,
fromthedisposaloffinancialassets,orboth.Financial
assetsclassifiedandmeasuredatamortisedcostare
heldina  businessmodel  withtheaimtoholdfinancial
assetsandcollectcontractualcashflows.Long-term
advancesandotherreceivablesareheldforthesole
purposeofcollectingprincipalandinterest.  Assuch,
they comply with the “Solely Payments of Principal
andInterest”(SPPI
G
)model.Theyareaccountedfor
using  the  amortised  cost  method.
Loansbearinginterestarerecordedatthenetvalue
of the amounts given, less direct costs of issue.
Financialincomeisaddedtothecarryingamountof
the  instrument  to  the  extent  thatit  is  not  received  in
the period in which it occurs. Interest is calculated
using  the  effective  interest  rate  method.
TheGroupapplies  thelowcreditrisk  simplification:at
everyreportingdate,theGroupevaluateswhetherthe
debtinstrumentisconsideredtohavelowcreditrisk
using  all  reasonable  andsupportable  information  that
is available without undue cost or effort. In making
that evaluation, the Group reassesses the internal
credit rating of the debt instrument. In addition,
theGroupconsidersthat  therehasbeenasignificant
increase  in  credit  risk  when  contractual  payments  are
more  than  30  days  past  due.
Interest-bearing borrowings and overdrafts are
recordedforthenetvalueofamountsreceived,minus
directissuecosts.Financialexpensesarerecognised
in income statement and are added to the carrying
amount  ofthe  instrument  tothe  extent  thatthey  are
unpaid  in  the  year  in  which  they  occur.
The  carrying  amount  isa  reasonable  approximation  of
fairvalue  inthe  caseoffinancial  instrumentssuchas
borrowings  and  debts  with  short-term  maturity.
Thefairvaluemeasurementofborrowingsanddebts
with financial institutions, other than in the short
term,dependsbothonthespecificsoftheloansand
on current market conditions. The fair value was
calculated by discounting the expected future cash
flowsatthere-estimatedinterestratesprevailingat
the balance sheet date over the remaining term of
repayment  of  the  loans  (Refer  to  Note  25).
The Group relied on the evolution of the interest
rate of the European Central Bank adjusted for the
specificriskinherentineachfinancialinstrument,as
areasonable  benchmarkforestimatingthe  fairvalue
of  such  borrowings  (see  Note  25).
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
if they meet the definition of equity under IAS 32
FinancialInstruments:Presentationandarenotheld
for trading. The classification is determined on an
instrument-by-instrument basis.
Gains and losses on these financial assets are never
recycledintoprofitorloss.Dividendsarerecognised
as other income in the statement of profit or loss
when the right of payment has been established,
exceptwhentheGroupbenefitsfromsuchproceeds
as  arecovery  ofpart  ofthecost  ofthefinancial  asset,
inwhichcase,  suchgainsarerecordedinOCI.  Equity
instrumentsdesignatedatfairvaluethroughOCIare
not subject to impairment assessment.
TheGroupelectedtoclassifyirrevocablyitsnon-listed
equity investments under this category. The Group
continues  tohold  these  equityinvestments  (alsorefer
to  Note  12).
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
61
Other financial assets and liabilities
Other financial assets (trade receivables, other
receivables,...)  andliabilities(trade  payables,other
payables,...)arerecordedattheiracquisitioncost.
Thefairvalue  ofotherfinancialassets  andliabilitiesis
estimated  to  be  close  to  the  carrying  amount.
The receivables are valued at their nominal value
(at cost) less any write-downs covering amounts
consideredasnon-recoverableiftheGroupdeemsit
necessary.Impairmentof assetsisrecognised in the
income statement under “Other operating income/
expenses”. The Group has established a provision
matrix,basedonitshistoricalcreditlossexperience
(average default over several years), which was
adjusted for prospective factors specific to the
debtorsandtheeconomicenvironment.  Thecarrying
amount of the asset is reduced using a provision
account, and the amount of the loss is recognised
intheconsolidatedincomestatement.TheBoardof
Directors  of  each  subsidiary  evaluates  the  receivables
individually. Value adjustments are determined by
taking  intoaccount  the  localeconomic  realityof  each
country.Theyarereviewed atthe receptionofnew
events  and  at  least  annually.
1.19. Provisions
Provisions occur when the Group has a present
obligation(legal  orconstructive)as  aresultof  apast
event.Thispresent  obligationwillprobably  leadtoan
outflowofeconomicbenefits,insofarastheycanbe
reasonably  estimated.
Restructuring provisions occur when the Group has
come up with a formal and detailed plan for the
restructuring,  which  has  been  notified  to  the  affected
parties.
1.20. Pension obligations
Defined contribution plans
The defined contribution plans designate the post-
employmentbenefit  plansunderwhichtheGrouppays
definedcontributionstoexternalinsurancecompanies
forcertaincategoriesofemployees.Paymentsmade
under these pension plans are recognised in the
income  statement  in  the  year  when  they  are  due.
Asthese plansdonotgeneratefuture commitments
for  the  Group,  they  do  not  give  rise  to  provisions.
Defined benefit plans
The defined benefit plans refer to post-employment
benefitplansthatprovideadditionalincometocertain
categoriesofemployeesforservicesrenderedduring
the  year  and  prior  years.
This guarantee of additional resources is a future
expenditure for the Group for which a commitment
iscalculatedbyindependentactuariesattheendof
each  financial  year.
The actuarial assumptions used to determine the
liabilities vary according to the prevailing economic
conditions  in  thecountry  in  whichthe  plan  is  located.
The discount rates applicable to post-employment
benefitobligationsshouldbe  determinedby  reference
tothemarketyieldsonhighqualitycorporatebonds
thatareappropriate/relevant  tothe  estimatedtiming
of  benefit  payments  at  the  balance  sheet  date.
TheGroupdecidedtocalculate discountratesusing
an economic approach for high-quality corporate
bonds whose duration corresponds to the terms of
employeebenefitsinthecountriesconcerned.Inthe
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.Thecurrencyanddurationofthesecorporate
orgovernment  bondsmust  correspondtothecurrency
and estimated duration of the post-employment
benefit  obligations.
Thecost  ofcorrespondingcommitmentsis  determined
by using the projected unit credit method, with a
discounted value calculation at the balance sheet
date in accordance with the principles of IAS
G
19
“Employee  Benefits”.
Allchangesintheamountofdefinedbenefitpension
obligations  are  recognised  as  soon  as  they  occur.
Remeasurements of defined benefit pension
obligations,includingactuarialgainsandlosses,should
berecognisedimmediatelyin“Othercomprehensive
income”
G
.
Consolidated financial statements
62
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
The  costs  ofservices  renderedduring  the  period,past
servicecosts(planamendment)andnetinterestare
recognised  as  an  expense  immediately.
Theamountrecognisedinthestatementoffinancial
positionconsistsofthepresentvalueofthedefined
benefitplans’ pensionobligations.This  valuehas  been
adjusted  for  actuarial  gainsand  losses,  minus  the  fair
value  of  plan  assets.
1.21. Revenue recognition
The Group’s revenues derive from the performance
obligation to transfer the 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 the moment when the goods are made
available to the carrier or when the buyer takes
possession of the goods. This also depends 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  transferof
deed  is  based  on  the  incoterms;
(b)forlocalsales,dependingonthedeliveryconditions,
either  whenthe  goodsleave  thepremises  orwhen  the
customer  takes  possession  of  the  goods.
Thisisthe moment whentheGroup has fulfilledits
performance  obligations.
Revenuesarevaluedat the transaction priceofthe
consideration received or receivable, to which the
company  expects  to  be  entitled.
The selling price is determined at the market price
and, inafewcases,iscontractuallydeterminedon
a provisional basis using a reliable estimate. In the
latter case, price adjustments can then take place
dependingonthemovementsbetweenthereference
price  and  the  final  price,  as  recognised.
The Groupconsidersitselftobetheprincipalinits
revenuearrangements,becauseitcontrolsthegoods
sold  before  transferring  them  to  the  customers.
As at 31 December 2023, revenue from the major
Group customer accounted for approximately
EUR197.8million(2022:EUR247.5million)oftotal
Group revenue.
1.22. Taxes
Currenttaxistheamountoftaxpayableorrecoverable
on  the  profit  or  loss  of  a  financial  year.
Temporary differences between the book values of
assetsandliabilitiesandtheirtaxbasesgiveriseto
therecognition  ofadeferredtax  usingthetax  rates.
The application of the latter is provided for when
reversing the temporary differences, as adopted on
the  closing  date.
Deferredtaxisrecognisedforalltaxabletemporary
differences, except when the deferred tax is
generated:
- by  goodwill  or;
- by the initial recognition of an asset or liability
in a transaction which is not acquired through a
business combination. It does not affect neither
the accounting profit nor the taxable profit (tax
loss),anddoesnotgive risetoequal taxableand
deductible  temporarydifferences  atthe  timeof  the
transaction.
A deferred tax liability is recognised for all taxable
temporary differences related to investments in
subsidiariesandassociates,unlessthedateonwhich
the temporary difference will be reversed can be
controlledand  willmost  likelynot  bereversedin  the
foreseeable  future.
A deferred tax asset is recognised in order to carry
forward unused tax losses and tax credits, so that
future taxable profits, on which these unused tax
lossesandtaxcreditscan becharged,willlikelybe
available.
Deferred tax is recognised in the income statement
unless it relates to items that have been directly
recognised,eitherin  equityorinother  comprehensive
income.
The Group applies the mandatory exception to
recognise and disclose information about deferred
taxassetsandliabilitiesrelatedtoPillar  Twoincome
taxes.
1.23. Segment information
IFRS
G
8 – Operating Segments requires operating
segments to be identified based on an internal
reporting.This internal reporting is analysed by the
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
63
entity’s chief operating decision-maker, in order to
assessperformance andmake resourcedecisions for
the  segments.
The identification of these operational sectors
originates from the information that is analysed
by the management. This information based on the
geographic  distributionofpolitical  andeconomicrisks
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, the Group’s
management has made use of its best estimates to
makeassumptionsontheextenttowhichthefollowing
aspectswereaffected:thecarryingamount  ofassets
and liabilities, information on assets and liabilities,
contingent liabilities and the carrying amount of
income and expenses recorded during the period.
Dependingonthe evolution oftheseassumptionsor
changingeconomicconditions,theamountsthatwill
appear in the Group’s future consolidated financial
statements may still differ from current estimates.
Material accounting policies, for which the Group
hasmade estimates,mainlyconcerntheapplication
of IAS
G
19 - Employee Benefits (Note 22), IAS
G
41 -
AgricultureandIAS
G
2-Inventories(Notes7and  16),
IAS
G
16  -  Property,  Plant  and  Equipment  (Note  6),  IAS
G
36  -  Impairment  ofAssets  (Notes  6,  7  and  9),  IFRS
G
9  -
FinancialInstruments(Note  25)andIFRS
G
16  –Leases
(Note  4).
In the absence of observable data within the scope
of IFRS
G
13 – Fair Value Measurement, the Group
makesuseof a modelthatwasdeveloped to assess
thefairvalueofagricultural production,usinglocal
productioncostsandconditions,and  localsales  (Refer
to  Note  1.12).
This method is inherently more volatile than
assessment  at  historical  cost.
1.25. Non-Current Assets held for sale
Non-currentassets(ordisposalgroups)areclassified
as assets that are held for sale when their carrying
amountistoberecoveredprincipallythroughasale
transaction and when a sale is considered highly
probable. If their carrying amount is recovered
principally through a sale transaction rather than
through  continuing  use,  these  assetsare  stated  at  the
lowest  of  the  carrying  amount  andfair  value,  less  the
costs  of  disposal  (Note  38).
1.26. Going concern
As at 31 December 2023, liabilities due within 12
months(EUR166,616,651)donotexceedassetsdue
within  12  months  (EUR  190,524,288).
1.27. Hyperinflation
The accounts of entities whose economies are
in hyperinflation are translated in accordance
with the standard IAS 29 – Financial reporting in
hyperinflationary economies. Monetary items in the
balancesheetarenot restated, as they arealready
expressed in the measuring unit current at the
end of the reporting period, unlike non-monetary
items,whicharerestatedintermsofthemeasuring
unit current at the end of the reporting period.
In accordance with IAS 21 Foreign exchange, as
comparative  amountsare  translatedinto  thecurrency
of  a  non-hyperinflationary  economy,  they  do  not  need
to  be  restated.
Sierra Leone
Since October 2023, Sierra Leone is considered
hyperinflationary.IAS29isapplicabletoentitieswhose
functionalcurrencyistheLeoneofSierraLeone(SLL).
Thefunctionalcurrencyof the subsidiary locatedin
Sierra Leone is the US dollar. Consequently, IAS 29
has no incidence on the Group financial statements
in Sierra Leone.
Ghana
Since October 2023, Ghana is considered
hyperinflationary.IAS29isapplicabletoentitieswhose
functionalcurrencyistheGhanaianCedi(GHS).The
functional  currencyof  thesubsidiary  locatedin  Ghana
is the Ghanaian Cedi. Consequently, non-monetary
items of the subsidiary located in Ghana have been
restated in terms of the measuring unit current at
theendofthereportingperiod(refer toNotes4,6
and 7), corresponding to the Ghana Consumer Price
Index (CPI), provided by the Government of Ghana
Statistical  Service.
Consolidated financial statements
64
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
1.28. Climate effect
The  Groupconsidered  the  potentialimpact  of  climate
change, which may affect positively or negatively
the Group’s biological assets, and thus the financial
performance of the Group. Among climate factors,
thedistributionofrainfallandsunshineare  themost
important ones.
TheGroupconsideredclimaticeventssuchassevere
windor  firesin  thevaluation  ofthebiological  assets.
However, given current knowledge, distinguishing
theimpactofnatural climate changes fromclimate
impact  caused  by  anthropic  activity  remains  difficult.
The Management Board considered various
documentation in its assessment of the impact,
suchasthelastIntergovernmentalPanelonClimate
Change (IPCC) reports but also the data coming
from the agronomic departments which reflect
the potential effect of climate change over the
past years. Budgets are adjusted to integrate the
operational needs that may result of the impact of
thosechangesandthevalueinuseofthebiological
assets is aligned consequently (Note 1.14 and Note
9). From a social stand point, the effect of climate
change are integrated through the regular updates
ofthedatausedforthecalculationoftheemployee
benefit  provision  (Note  22).
TheManagementBoardwillcontinuetoconsiderthe
potentialimpact  ofclimate  changeinitsassessments,
andwillintegrateanynewpotentialimpactthatcould
lead to a material change in the Group’s financial
statements.
1.29. Geopolitical uncertainties
In February 2022, a number of countries (including
the  US,UK  and  EU)imposed  sanctionsagainst  certain
entities and individuals in Russia as a result of the
officialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Announcementsofpotentialadditionalsanctionswere
made  following  military  operations  initiated  by  Russia
against  Ukraine  on  24  February  2022.
On7October2023Palestinianmilitantgroupsledby
Hamas launched a coordinated surprise offensive on
Israelresultinginmorethan1,200deaths,primarily
Israelicitizens.Followingthisattack,Israeldeclared
itself  in  a  stateof  war  for  the  firsttime  since  theYom
Kippur  War  in  1973.
Due  to  the  geopolitical  tensions,since  February  2022,
therehasbeenasignificantincreaseinvolatilityonthe
securities and currency markets. The conflicts have
hadasignificantimpactonthefinancial  markets,with
many investors concerned about the risk of further
escalation  andtheensuing  impacton  globaltrade  and
economic  growth.
Although the aforementioned aspects have not
significantly impacted the company’s operations nor
performance and going concern during 2023, the
BoardofDirectorscontinuestomonitortheevolving
situation and its impact on the company’s financial
position  and  results.
1.30. Environmental, Social and Governance
The  Grouphas  describedits  ambitionsand  objectives
in terms of environment, social responsibilities and
governance in a separate Sustainability Report that
can  be  accessed  on  Socfinaf  website.
Managementhas  performeda  preliminaryassessment
tomeasurethefinancialimpactsofthoseobjectives
on the consolidated financial statements. Based on
this assessment, Management was able to conclude
that most of the commitments described in the
SustainabilityReporthavealreadybeenincorporated
in the budgets of the subsidiaries of Group. Those
budgets are mainly used for the determination of
internalindicatorsofimpairmentbutalsoasabasisfor
thedeterminationoftheexpectedgrowthrates  ofthe
companies.A furtherdescriptionfortheassessmentof
impairmentindicators  isprovided  inNotes1.14  and9.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
65
Note 2. Subsidiaries and associates

| % Group | % Group | Consolidation | % Group | % Group | Consolidation
| Interest | Control | Method (*) | Interest | Control | Method (*)
| 2023 | 2023 | 2023 | 2022 | 2022 | 2022
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 | 66.38 | 66.38 | FI
SOCIETE  AFRICAINE  FORESTIERE  ET  AGRICOLE  DU  CAMEROUN | 69.05 | 69.05 | FI | 69.05 | 69.05 | FI
"SAFACAM"  S.A. |  |  |  |  |  |
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.U. | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI
Other activities |  |  |  |  |  |
BEREBY-FINANCES  "BEFIN"  S.A. | 87.06 | 87.06 | FI | 87.06 | 87.06 | FI
CAMSEEDS  S.A. | 67.52 | 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
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  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
66
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
List of subsidiaries and associated companies
* AGRIPALMALDAis  a  company  located  onthe  island  of  SãoTomé
and  Principe  specialised  in  the  production  of  palm  oil.
* BEREBY-FINANCES “BEFIN” S.A. is a holding company under
IvorianlawthatownstheIvorian  companiesSOGBS.A.and  SCC.
* BRABANTA S.A.is  acompany  underCongoleselawspecialised  in
the  production  of  palm  oil.
* CAMSEEDSS.A.isacompanyunderCameroonianlawspecialised
in  research,  development  and  production  of  seeds  (palm).
* CENTRAGES S.A. is a company under Belgian law providing
administrative  and  accounting  services  andowning  three  floors
of  office  space  in  Brussels.
* IMMOBILIERE DE LA PEPINIERE “PEPINIERE”S.A.is a company
underBelgianlawowningthreefloorsofofficespaceinBrussels.
* INDUSERVICES S.A. is a company under Luxembourgish law
whosepurposeis toprovideall administrative servicestoall
companiesandorganisations,includingallservicesrelatingto
documentation,bookkeepingandregisterservices,aswellas
allrepresentation,study,consultationactivitiesandassistance.
* INDUSERVICES FR S.A. is a company under Swiss law whose
purpose is to provide all administrative services to all
companies,  organisationsand  companies,  includingall  services
relatingtodocumentation,bookkeepingandregisterservices,
as  wellas  allrepresentation,study,consultationactivities  and
assistance. In addition, it provides all Group companies with
access  to  the  common  IT  platform.
* LIBERIANAGRICULTURAL COMPANY“LAC” is a companyunder
Liberian  law  that  specialises  in  the  production  of  rubber.
* OKOMUOILPALMCOMPANY“OKOMU”PLCisacompanyunder
Nigerianlawspecialisedintheproductionofpalmandrubber
products.
* PLANTATIONSSOCFINAFGHANA “PSG”LTDisacompanyunder
Ghanaian  law  specialisedin  the  production  ofpalm  and  rubber
products.
* SOCIETE AFRICAINE FORESTIERE ETAGRICOLE DU CAMEROUN
“SAFACAM”  S.A.  isa  company  under  Cameroonian  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
activeinCameroon intheproduction ofpalm oilandrubber
cultivation.
* SOCFIN AGRICULTURAL COMPANY “SAC” LTD is a company
locatedinSierraLeonespecialisedintheproductionofpalm
oil.
* SOCFINCONSULTANTSERVICES“SOCFINCO”S.A. isacompany
established in Belgium providing technical assistance,
agronomic  and  financial  services.
* SOCFINCO  FRS.A.is  aSwisscompanyprovidingservices,studies
and  management  of  agro-industrial  plantations.
* SOCIETE  ANONYMEFORESTIEREAGRICOLE“SAFA”is  acompany
underFrenchlawthatholdsastakeinaplantationinCameroon,
Safacam S.A.
* SOCFINDES.A.isafinanceholdingcompanyunderLuxembourgish
law.
* SOCIETE DES PALMERAIES DE LA FERME SUISSE “SPFS” S.A. is
activeinCameroonintheproduction,processingandmarketing
of  palm  oil.
* SODIMEX FR S.A. is a company under Swiss law active in the
field  of  purchase  and  sale  of  planting  material.
* SOCIETEDESCAOUTCHOUCSDEGRAND-BEREBY “SOGB”S.A.  is
acompanyunderIvorianlawspecialisedintheproductionof
palm  and  rubber  products.
* SOGESCOL FR S.A. is a Swiss company active in the tropical
products  trade.
*STPINVEST  S.A.  is  acompany  under  Belgian  law  with  a  stakein
Agripalma  LDA.
* SUDCOMOECAOUTCHOUC“SCC”S.A.isacompanyunderIvorian
lawwhose  activityfocuseson  theprocessingandmarketing  of
rubber.
* TERRASIA S.A.isacompanyunderLuxembourgishlawowning
office  spaces.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
67
Note 3. Restatement and reclassification
The  Grouphas  restated  itspreviously  issued  consolidatedfinancial  statements  fortheyears  ended31December
2022  and  1  January  2022.The  Group  has  identifieda  misstatement  from  prior  year.  This  misstatement  has  been
considered  by  restating  each  of  the  relevant  line  items  in  the  prior  years’  financial  statements.
Certainitemsin  thereportedfiguresrelatingto  prioryearhavebeenreclassified  forcurrentyearpresentationpurposes.
ThefollowingtablessummarisetheimpactoftheserestatementandreclassificationontheGroup’sfinancial
statements.
Consolidated statement of financial position:

|  | Impact of the |  | Impact of the |
|  | restatement |  | reclassification |
| Previously |  |  |  |
01/01/2022 | published | (a) | (b) | (c) | Restated
Consolidated  reserves | 180,034,759 | -13,616,155 |  |  | 166,418,604
Translation  reserves | -63,481,543 | -130,011 |  |  | -63,611,554
Profit  /  (loss)  for  the  period | 72,028,965 |  |  |  | 72,028,965
Non-controlling  interests G | 121,205,286 | -7,326,314 |  |  | 113,878,972
Total Equity | 309,787,467 | -21,072,480 | 0 |  | 288,714,987
Deferred  tax  liabilities | 11,408,890 | 21,072,480 |  |  | 32,481,370
Long-term  debt,  net  of  current  portion | 234,679,480 |  | 5,955,219 |  | 240,634,699
Other  payables,  non-current | 7,401,155 |  | -5,955,219 |  | 1,445,936
Short-term  debt  and  current  portion  of |  |  |  |  |
long-term  debt | 35,588,183 |  | 40,403,288 |  | 75,991,471
Other  payables,  current | 68,876,569 |  | -40,403,288 |  | 28,473,281
TOTAL EQUITY AND LIABILITIES | 357,954,277 | 21,072,480 | 0 |  | 379,026,757

|  | Impact of the |  | Impact of the |
|  | restatement |  | reclassification |
| Previously |  |  |  |
31/12/2022 | published | (a) | (b) | (c) | Restated
Consolidated  reserves | 253,235,800 | -13,854,932 |  |  | 239,380,868
Translation  reserves | -71,070,327 | 370,392 |  |  | -70,699,935
Profit  /  (loss)  for  the  period | 75,584,548 | -2,398,815 |  |  | 73,185,733
Non-controlling  interests G | 124,791,747 | -8,045,799 |  |  | 116,745,948
Total Equity | 382,541,768 | -23,929,154 | 0 |  | 358,612,614
Deferred  tax  liabilities | 9,219,942 | 23,929,155 |  |  | 33,149,097
Long-term  debt,  net  of  current  portion | 159,582,281 |  | 4,354,848 |  | 163,937,129
Other  payables,  non-current | 6,005,420 |  | -4,354,848 |  | 1,650,572
Short-term  debt  and  current  portion  of |  |  |  |  |
long-term  debt | 43,071,845 |  | 40,405,480 |  | 83,477,325
Other  payables,  current | 62,447,969 |  | -40,405,480 |  | 22,042,489
TOTAL EQUITY AND LIABILITIES | 280,327,457 | 23,929,155 | 0 |  | 304,256,612

Consolidated financial statements
68
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Consolidated income statement and statement of comprehensive income:

|  | Impact of the |  | Impact of the |
|  | restatement |  | reclassification |
| Previously |  |  |  |
For the year ended 31 December 2022 | published | (a) | (b) | (c) | Restated
Work  performed  by  entity  and  capitalised | 9,969,880 |  |  | -9,969,880 | 0
Raw  materials G and  consumables  used | -182,873,108 |  |  | 4,269,395 | -178,603,713
Other  expenses | -132,268,074 |  |  | 4,130,005 | -128,138,069
Staff  costs | -74,266,738 |  |  | 1,490,510 | -72,776,228
Other  operating  expenses | -25,095,805 |  |  | 79,970 | -25,015,835
Deferred  tax  (expense)  /  income | -2,914,673 | -3,613,947 |  |  | -6,528,620
Profit / (loss) for the period | 109,649,889 | -3,613,947 | 0 | 0 | 106,035,942
Profit  /  (loss)  attributable  to  non-controlling |  |  |  |  |
interests G | 34,065,341 | -1,215,132 |  |  | 32,850,209
Profit  /  (loss)  attributable  to  the  owners  of |  |  |  |  |
the Parent | 75,584,548 | -2,398,814 |  |  | 73,185,734
Gains  /  (losses)  on  exchange  differences  on |  |  |  |  |
translation  of  subsidiaries | -7,801,046 | 900,491 |  |  | -6,900,555
Comprehensive income | 103,007,511 | -2,713,456 | 0 |  | 100,294,055

Therestatement(a)correspondstodeferredtaxliabilitiesofoneofthesubsidiariesinAfrica(Okomu),that
were  understated  in  prior  years.
The  reclassification  are  described  below:
(b) Loans  from  shareholders  havebeen  reclassified  respectivelyfrom  other  payables(non-current)  to  long-term
debt,  and  from  other  payables  (current)  to  short-term  debt;
(c) Workperformed  byentityand  capitalisedandrelated  expenses,forseveral  subsidiariesinAfrica,have  been
offset  within  income  statement,  in  order  to  impact  the  statement  of  financial  position  movements  only.
Undiluted  earningsper  share  forthe  yearended  31December  2022have  also  beenadjusted.The  amountof  the
adjustment  to  undiluted  earnings  per  share  is  a  decrease  of  EUR  0.14  per  share.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
69
Note 4. Leases
The  amounts  recognised  in  the  balance  sheet  related  to  leases  are  as  follows:
* Right-of-use assets

|  |  | Land and |
| Furniture, |  | concession G of |
| vehicles and |  | agricultural |
EUR | other | Buildings | area | Total
Gross value as at 1 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 as at 31 December 2022 | 10,819,535 | 535,523 | 7,582,758 | 18,937,816
Accumulated depreciation as at 1 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 as at 31 December 2022 | -7,798,762 | -465,096 | -2,504,392 | -10,768,250
Net book value as at 31 December 2022 | 3,020,773 | 70,427 | 5,078,366 | 8,169,566
Gross value as at 1 January 2023 | 10,819,535 | 535,523 | 7,582,758 | 18,937,816
Additions | 10,151,459 | 0 | 14,357,096  (*) | 24,508,555
Disposals | -4,402,886 | 0 | 0 | -4,402,886
Hyperinflation | 0 | 0 | 3,213,055 | 3,213,055
Transfer  to  assets  held  for  sale | 0 | 0 | -185,995 | -185,995
Foreign  exchange  differences | -3,219,325 | -831 | -391,540 | -3,611,696
Gross value as at 31 December 2023 | 13,348,783 | 534,692 | 24,575,374 | 38,458,849
Accumulated depreciation as at 1 January 2023 | -7,798,762 | -465,096 | -2,504,392 | -10,768,250
Depreciation | -3,641,708 | -31,842 | -559,689 | -4,233,239
Depreciation  reversals | 4,402,886 | 0 | 0 | 4,402,886
Transfer  to  assets  held  for  sale | 0 | 0 | 152,144 | 152,144
Foreign  exchange  differences | 1,180,354 | 230 | 39,566 | 1,220,150
Accumulated depreciation as at 31 December 2023 | -5,857,230 | -496,708 | -2,872,371 | -9,226,309
Net book value as at 31 December 2023 | 7,491,553 | 37,984 | 21,703,003 | 29,232,540

(*) Additions  during  the  period  correspond  to  the  revision  of  the  concession  price  in  Cameroon.
Consolidated financial statements
70
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Lease liabilities

| 31/12/2023 | 31/12/2022
| EUR | EUR
Long-term  lease  liabilities | 24,950,880 | 8,674,141
Short-term  lease  liabilities | 2,778,042 | 1,532,064
TOTAL | 27,728,922 | 10,206,205

The  amounts  recognised  in  the  income  statement  in  relation  with  the  lease  contracts  are  detailed  as  follows:

| 2023 | 2022
| EUR | EUR
Depreciation  of  right-of-use  assets | 4,233,239 | 1,861,776
Expenses  related  to  short-term  leases  and  leases  of  low-value  assets | 2,154,944 | 1,529,868
Interest  expense  (included  in  the  financial  expenses) | 3,411,779 | 1,041,390
TOTAL | 9,799,962 | 4,433,034

* Agricultural land and concessions
G
The  Group  does  notown  all  of  the  landon  which  its  biological-based  assets  areplanted.  In  general,  these  lands
are  subject  to  very  long-term  concessions
G
from  the  local  public  authority.  These  concessions
G
are  renewable.

Company | Date of initial lease or | Duration of the | Area |
renewal extension | initial lease | conceded |
SAC | 2011/2012/2013/2014 | 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 | 2013/2016/2022 | 50  years | 18,304  ha |
OKOMU | 1986/1993/1999//2014 | 92  to  99  years | 33,113  ha |
SOCAPALM | 2005 | 55  years | 58,063  ha |
SAFACAM | 2022 | 3 years | 2,161  ha | (4)
AGRIPALMA | 2009 | 25  years | 1,735  ha | (2)(5)
BRABANTA | 2004 to 2022 | 25  years | 8,380  ha |

(1) Renewable  concessions
G
for  a  term  of  25  years
(2) Concessions
G
renewable  tacitly  for  periods  of  25  years
(3) Extensible  concessions
G
up  to  40,000  ha
(4) Safacam  owns  15,529  ha
(5) Agripalma  owns  653  ha
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
71
Note 5. Intangible assets

|  |  | Other |
| Concessions G |  | intangible |
EUR | and patents | Softwares | assets | TOTAL
Cost as at 1 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 as at 31 December 2022 | 1,633,382 | 405,561 | 630,810 | 2,669,753
Accumulated depreciation as at 1 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 as at 31 December 2022 | -245,606 | -405,161 | -569,086 | -1,219,853
Net book value as at 31 December 2022 | 1,387,776 | 400 | 61,724 | 1,449,900
Cost as at 1 January 2023 | 1,633,382 | 405,561 | 630,810 | 2,669,753
Additions | 0 | 15,621 | 0 | 15,621
Disposals | 0 | 0 | -177 | -177
Transfer | 0 | 0 | -35,710 | -35,710
Foreign  exchange  differences | -489,272 | -21,759 | -13,624 | -524,655
Cost as at 31 December 2023 | 1,144,110 | 399,423 | 581,299 | 2,124,832
Accumulated depreciation as at 1 January 2023 | -245,606 | -405,161 | -569,086 | -1,219,853
Depreciation | -24,459 | -746 | -29,603 | -54,808
Transfer | 0 | 0 | 35,710 | 35,710
Foreign  exchange  differences | 70,469 | 21,759 | 13,624 | 105,852
Accumulated depreciation as at 31 December 2023 | -199,596 | -384,148 | -549,355 | -1,133,099
Net book value as at 31 December 2023 | 944,514 | 15,275 | 31,944 | 991,733

Consolidated financial statements
72
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 6. Property, plant and equipment

| Land and |  |  | Furniture, |  | Advances |
| nurseries |  | Technical | vehicles and | Work in | and prepay- |
EUR | (***) | Buildings | installations | others | progress | ments | TOTAL
Cost as at 1 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 as at 31 December 2022 | 9,367,879 | 252,932,179 | 167,690,988 | 221,376,452 | 14,260,711 | 865,583 | 666,493,792
Accumulated depreciation as at 1 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 as at 31 December 2022 | -1,193,432 | -137,332,463 | -77,292,225 | -170,418,829 | 0 | 0 | -386,236,949
Accumulated impairment as at 1 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 as at 31 December 2022 | 0 | -409,129 | -2,131,536 | -182,271 | 0 | 0 | -2,722,936
Net book value as at 31 December 2022 | 8,174,447 | 115,190,587 | 88,267,227 | 50,775,352 | 14,260,711 | 865,583 | 277,533,907
Cost as at 1 January 2023 | 9,367,879 | 252,932,179 | 167,690,988 | 221,376,452 | 14,260,711 | 865,583 | 666,493,792
Additions  (*) | 0 | 4,599,712 | 5,234,624 | 13,420,048 | 12,189,105 | 676,214 | 36,119,703
Disposals | 0 | -150,984 | -445,823 | -3,383,491 | -1,487,422 | 0 | -5,467,720
Hyperinflation | 0 | 3,559,352 | 4,626,554 | 1,723,126 | 0 | 0 | 9,909,032
Transfer | -1,482,854 | 10,296,975 | 2,197,008 | 3,184,170 | -14,548,501 | -1,069,328 | -1,422,530
Transfer  to  assets  held  for  sale | 0 | -5,971,824 | 0 | -1,261,309 | 0 | 0 | -7,233,133
Foreign  exchange  differences | -2,259,961 | -19,590,147 | -39,010,253 | -14,835,108 | -1,276,793 | -8,376 | -76,980,638
Cost as at 31 December 2023 | 5,625,064 | 245,675,263 | 140,293,098 | 220,223,888 | 9,137,100 | 464,093 | 621,418,506
Accumulated depreciation as at 1 January 2023 | -1,193,432 | -137,332,463 | -77,292,225 | -170,418,829 | 0 | 0 | -386,236,949
Depreciation | -16,518 | -12,150,672 | -8,955,871 | -13,400,168 | 0 | 0 | -34,523,229
Depreciation  reversals | 0 | 140,444 | 306,131 | 3,370,914 | 0 | 0 | 3,817,489
Transfer | 19,670 | -61,214 | -393 | 393 | 0 | 0 | -41,544
Transfer  to  assets  held  for  sale | 0 | 3,631,134 | 0 | 975,370 | 0 | 0 | 4,606,504
Foreign  exchange  differences | 5,941 | 6,213,514 | 10,482,218 | 9,540,193 | 0 | 0 | 26,241,866
Accumulated depreciation as at 31 December 2023 | -1,184,339 | -139,559,257 | -75,460,140 | -169,932,127 | 0 | 0 | -386,135,863
Accumulated impairment as at 1 January 2023 | 0 | -409,129 | -2,131,536 | -182,271 | 0 | 0 | -2,722,936
Impairment | 0 | -298,687 | 0 | 0 | 0 | 0 | -298,867
Impairment  reversals | 0 | 0 | 133,234 | 0 | 0 | 0 | 133,234
Transfer  to  assets  held  for  sale | 0 | 385,553 | 0 | 0 | 0 | 0 | 385,553
Foreign  exchange  differences | 0 | 7,968 | 0 | 0 | 0 | 0 | 7,968
Accumulated impairment as at 31 December 2023 | 0 | -314,295 | -1,998,302 | -182,271 | 0 | 0 | -2,494,868
Net book value as at 31 December 2023 | 4,440,725 | 105,801,711 | 62,834,656 | 50,109,490 | 9,137,100 | 464,093 | 232,787,775

(*) Additions  for  the  period  include  capitalised  costs.
(**) Impairment  test  on  property,  plant  and  equipment  is  disclosed  in  Note  9.
(***)Nurseries  have  been  reclassified  in  2023  from  property,  plant  and  equipment  to  biological  assets,  see  Note  7.
Asat31December  2023,the  Grouphas  technicalinstallationsandprofessionalequipmentpledged  asguarantees  forborrowings  ofthe
Group  for  an  amount  of  EUR  4.9  million  (2022:  EUR  8.1  million).  Details  of  these  guarantees  are  provided  in  Note  32.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
73
Note 7. Biological assets

| Palm | Rubber | Nurseries and |
EUR | Mature | Immature | Mature | Immature | Others (***) | Total
Cost as at 1 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 as at 31 December 2022 | 363,609,691 | 5,508,065 | 192,975,090 | 38,483,204 | 7,131 | 600,583,181
Accumulated depreciation as at 1 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 as at 31 December 2022 | -132,538,731 | 0 | -60,632,580 | 0 | -3,160 | -193,174,471
Accumulated impairment as at 1 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 as at 31 December 2022 | -23,590,118 | 0 | -30,770,318 | -2,803,518 | 0 | -57,163,954
Net book value as at 31 December 2022 | 207,480,842 | 5,508,065 | 101,572,192 | 35,679,686 | 3,971 | 350,244,756
Cost as at 1 January 2023 | 363,609,691 | 5,508,065 | 192,975,090 | 38,483,204 | 7,131 | 600,583,181
Additions  (*) | 0 | 3,490,349 | 0 | 5,634,066 | 521,397 | 9,645,812
Disposals | -934,198 | -386,833 | -2,955,273 | 0 | -769,566 | -5,045,870
Hyperinflation | 3,386,453 | 0 | 1,689,724 | 0 | 0 | 5,076,177
Transfer | 3,546,358 | -3,512,803 | 8,938,826 | -8,765,028 | 1,275,501 | 1,482,854
Transfer  to  assets  held  for  sale | 0 | 0 | -40,811,858 | -4,002,517 | -71,764 | -44,886,139
Foreign  exchange  differences | -37,402,896 | -98,312 | -9,850,140 | -2,944,059 | -188,941 | -50,484,348
Cost as at 31 December 2023 | 332,205,408 | 5,000,466 | 149,986,369 | 28,405,666 | 773,758 | 516,371,667
Accumulated depreciation as at 1 January 2023 | -132,538,731 | 0 | -60,632,580 | 0 | -3,160 | -193,174,471
Depreciation | -14,497,818 | 0 | -7,567,771 | 0 | -302 | -22,065,891
Depreciation  reversals | 931,881 | 0 | 2,534,073 | 0 | 0 | 3,465,954
Transfer | 889 | 0 | 0 | 0 | -19,670 | -18,781
Transfer  to  assets  held  for  sale | 0 | 0 | 5,837,046 | 0 | 0 | 5,837,046
Foreign  exchange  differences | 9,779,930 | 0 | 2,927,522 | 0 | 0 | 12,707,452
Accumulated depreciation as at 31 December 2023 | -136,323,849 | 0 | -56,901,710 | 0 | -23,132 | -193,248,691
Accumulated impairment as at 1 January 2023 | -23,590,118 | 0 | -30,770,318 | -2,803,518 | 0 | -57,163,954
Impairment  (**) | 0 | 0 | -6,632,680 | -915,146 | 0 | -7,547,826
Transfer | 0 | 0 | -851,402 | 851,402 | 0 | 0
Transfer  to  assets  held  for  sale | 0 | 0 | 34,311,388 | 2,768,543 | 0 | 37,079,931
Foreign  exchange  differences | 2,853,205 | 0 | 1,545,550 | 98,716 | 0 | 4,497,471
Accumulated impairment as at 31 December 2023 | -20,736,913 | 0 | -2,397,462 | -3 | 0 | -23,134,378
Net book value as at 31 December 2023 | 175,144,646 | 5,000,466 | 90,687,197 | 28,405,663 | 750,626 | 299,988,598

(*) Additions  for  the  period  include  capitalised  costs.
(**) Impairment  test  on  biological  assets  is  disclosed  in  Note  9.
(***)Nurseries  have  been  reclassified  in  2023  within  biological  assets.
Accounting  policy  regarding  current  biological  assets  is  disclosed  in  note  1.12.
Consolidated financial statements
74
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 8. Depreciation and impairment

| 2023 | 2022
| EUR | EUR
Depreciation |  |
Of  intangible  assets  (Note  5) | 54,808 | 54,634
Of  property,  plant  and  equipment  excluding  biological  assets  (Note  6) | 34,523,229 | 34,197,220
Of  biological  assets  (Note  7) | 22,065,891 | 21,287,485
Of  right-of-use  assets  (Note  4) | 4,233,239 | 1,861,776
Impairment |  |
Of  property,  plant  and  equipment  excluding  biological  assets  (Note  5) | 165,452 | 812,607
Of  biological  assets  (Note  6) | 7,547,826 | 0
TOTAL | 68,590,445 | 58,213,722

Note 9. Impairment of assets
Goodwill
Impairmenttestsongoodwillareperformedatleast
oncea  yeartoassesswhether  thecarryingamountis
still  appropriate.
Intangible and tangible assets and right-of-use
assets
At each reporting date, the Group reviews the
carryingamountofitsintangibleandtangibleassets
and right-of-use assets in order to assess whether
there  is  anyindication  of  impairment.If  there  is  such
anindication,the  recoverableamountofthe  assetis
estimated in order to determine the amount of the
impairment  loss.
As at 31 December 2023, an impairment loss of
EUR 0.3 million (2022: EUR 0.8 million) and an
impairment reversal for EUR 0.1 million were
recognised  on  Property,  plant  and  equipment.
Bearer biological assets
Ateachreportingdate,theGroupassessesifthereisany
indication  that  its  biological  assets  may  be  impaired.
For  this  purpose,the  Group  assesses  several  indicators:
The significant and sustained decreasing trend in the
pricesofnatural rubber (TSR20
G
1
st
position on SGX
G
)
and  crudepalm  oil(CIF  Rotterdam
G
)  wasconsidered  as
anobservablesignthatthebiologicalassetsmayhave
beenimpaired.  A decreaseinthesepricesat  reporting
dategreaterthan15%comparedtoanaverageof5-year
value has been set by the Group as an impairment
indicator.
Asat 31December 2023,thedecreaseinpricesdoes
not exceed 15% oftheaveragepriceoverthepast5
years  for  the  Rubber  and  Palm  segment.
The Group also considers average prices over the six
months  beforereporting  date,and  averageprices  over
thelasttwelvemonths,insteadofonlyclosingprices.
Thisisdoneinordertoavoidseasonalfluctuationsin
the  prices  of  supply  materials.
Moreover,theGroupalsoreviewsthepricesobserved
on local market and considers a decrease in these
pricesattheclosingdateofmorethan15%compared
to  anaverage  of  valuesover  5  years,  asan  impairment
indicator.
Based on these criteria, for the rubber segment, the
riseinpricesobserved during the 2023 financialyear
doesnotexceed  15%oftheaveragepricesoverthe  past
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
75
5years.Forthe  palmsegment,  thereviewofglobaland
local  prices  do  not  show  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  inplantations  that  could  havea
material  impact  on  their  future  cash  flows.
ThereviewofimpairmentindicatorsledtheGroupto
conclude  that  a  sign  of  impairment  exist  for  SRC.
If an indication of impairment is identified, the
recoverable amountofthebearerbiologicalassetsis
determined.
Impairment tests must be performed on the smallest
identifiable  groupof  assetswhich  generatescash  flows
independentlyofotherassetsorgroupsofassets,and
forwhichtheGrouppreparesfinancial  informationfor
the  Board  of  Directors.
The identification of Cash Generating Units (CGUs)
depends,  in  particular,  on:
-  how  the  Group  manages  the  activities  of  the  entity;
-thewayinwhichdecisionsaremadewithregardsto
the  pursuit  or  the  disposal  of  its  activities  and;
-the  existenceofanactive  marketforallor  partof  the
production.
TheGroupconsidersthepoliticalandcountryspecific
risk factors while reviewing business evolution.
Therefore, companies are grouped within the CGU
country.
The recoverable amount of bearer biological assets
isdetermined throughthecalculation ofvalue inuse
byusingthemostrecentinformationapprovedbythe
local management. Those information comprise the
measures taken that will help to prevent the effects
of the climate change (maintenance program, land
andfieldpreparationagainst  thefireand/orflooding
resultingfromheavyrainfalls).Theimpactsonfuture
cash-flowsofthepotentialeffectsofclimatechanges
are therefore taken into consideration. Then the
Groupusesthediscountedvalueofexpectednetcash
flows,whicharediscountedatapre-taxrate.Onthe
reporting date, the financial projection incorporates
the full exploitation of the younger bearer biological
assets.  The  operational  life
G
ranges  from  25  to  30  years
for  bothcrops.  Thisperiod  canbe  adapted  accordingto
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.
This sensitivity analysis is performed whenever an
impairment test is performed after impairment
indicators  are  identified.
Changes in realised margins
Initially,theGroupdeterminesseparatelytheexpected
production of each category of bearer biological
assets within the entity over their remaining life.
This expected production is estimated through the
surface areas planted on the reporting date as well
asthroughtheactualcropyieldrecordedduringthe
financialyear.Thelatterdependsonthematurityof
the  bearerbiologicalasset.  Production  isthenvalued
onanaveragebasisoffive-yearof themarginsthat
were  achieved  bythe  entity  inrelation  toagricultural
activities. The value in use of the bearer biological
asset is then obtained by discounting these cash
flows.Averagemarginsareconsideredconstantover
thedurationofthefinancialprojection.Anindexing
factor  is  not  considered.
Based on the existence of an impairment indication
andfollowingsubsequentimpairmenttests,theGroup
accounted for an impairment loss of EUR 7.5 million
for SRC (Liberia). The remaining amount has been
reclassifiedwithin  assetsheld  forsale(see  alsoNotes  7
and  38).
As at 31 December 2023, accumulated impairment
losses in the palm business segment amounted
to EUR 7.2 million for Brabanta, EUR 9.2 million
forAgripalma and EUR 4.4 million for SAC. For the
rubbersegment,theaccumulatedimpairmentlosses
areEUR1.0 millionforPSG andEUR1.4 millionfor
Safacam(Note7).Noimpairmentreversalindicators
have  been  identified  during  the  year.
Consolidated financial statements
76
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 10. Non-wholly owned subsidiaries in which non-controlling interests
are significant
Interests of non-controlling interests
G
in the activities of the Group

|  | Percentage of equity shares | Percentage of voting rights of
Subsidiary | Main location | of non-controlling interest G | non-controlling interests G
|  | 2023 | 2022 | 2023 | 2022
Production of palm oil and rubber |  |  |  |  |
SOGB | Côte  d'Ivoire | 36% | 36% | 27% | 27%
OKOMU | Nigeria | 34% | 34% | 34% | 34%
SAFACAM | Cameroon | 31% | 31% | 31% | 31%
SOCAPALM | Cameroon | 33% | 33% | 33% | 33%

|  | Net income attributed to |  |
|  | non-controlling interests G |  |
|  | in the subsidiary during the | Accumulated non-controlling
Subsidiary |  | financial period | interests G in the subsidiary
|  | 2023 | 2022 | 2023 | 2022
|  | EUR | EUR | EUR | EUR
SOGB |  | 1,816,310 | 9,919,771 | 34,428,578 | 40,323,449
OKOMU  (Restated) |  | 11,532,083 | 12,770,057 | 13,610,634 | 24,085,211
SAFACAM |  | -340,054 | 795,546 | 12,682,330 | 14,333,451
SOCAPALM |  | 5,833,015 | 5,871,789 | 29,186,471 | 27,876,194
Subsidiaries  that  hold  non-controlling  interests G that  are  not  significant  individually | 10,137,102 | 10,127,641
Non-controlling interests G |  |  |  | 100,045,115 | 116,745,946

Summary financial information concerning subsidiaries whose interests of non-controlling interests
G
are
significant for the Group excluding intragroup eliminations

| Current | Non-current | Current | Non-current
Subsidiary | assets | assets | liabilities | liabities
2022 | EUR | EUR | EUR | EUR
SOGB | 41,259,858 | 98,190,002 | 27,675,941 | 6,768,082
OKOMU  (Restated) | 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
2023 | EUR | EUR | EUR | EUR
SOGB | 39,237,673 | 96,453,663 | 35,692,377 | 7,376,308
OKOMU | 23,453,222 | 59,724,716 | 17,910,393 | 24,411,400
SAFACAM | 13,883,373 | 34,456,093 | 11,913,763 | 7,092,036
SOCAPALM | 28,442,311 | 111,898,820 | 31,614,481 | 5,254,925

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
77

|  |  | Comprehen- | Dividends
| Revenue from | Net income | sive income | paid to non-
| ordinary | for the | for the | controlling
Subsidiary | activities | period | period | interests G
2022 | EUR | EUR | EUR | EUR
SOGB | 143,125,135 | 23,862,820 | 23,862,820 | 5,321,013
OKOMU  (Restated) | 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
2023 | EUR | EUR | EUR | EUR
SOGB | 111,971,288 | 8,034,526 | 8,034,526 | 5,480,113
OKOMU | 113,518,676 | 35,264,066 | 35,264,066 | 8,816,146
SAFACAM | 35,943,252 | 933,817 | 933,817 | 1,303,922
SOCAPALM | 129,002,660 | 18,194,012 | 18,194,012 | 5,107,090

| Net cash inflows (outflows)
|  |  |  | Net cash
| Operating | Investing | Financing | inflows
Subsidiary | activities | activities | activities | (outflows)
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
2023 | EUR | EUR | EUR | EUR
SOGB | 30,182,499 | -8,399,725 | -18,023,120 | 3,759,654
OKOMU | 32,367,223 | -11,180,148 | -25,909,506 | -4,722,431
SAFACAM | 5,355,954 | -4,585,446 | -2,522,796 | -1,752,289
SOCAPALM | 35,566,217 | -11,080,808 | -19,192,268 | 5,293,141

ThenatureandevolutionoftherisksassociatedwiththeinterestsheldbytheGroupinthesubsidiariesremained
stable  over  the  financial  period  compared  to  the  previous  year.
Consolidated financial statements
78
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 11. Investments in associates

| 2023 | 2022
| EUR | EUR
Value as at 1 January | 27,288,358 | 23,619,989
Scope  exits  (Note  2) | 0 | -881,038
Income from associates | 6,002,745 | 11,297,777
Dividends | -8,292,174 | -7,126,982
Share in other comprehensive income from associates | -337,884 | 443,737
Other movements | -161,386 | -65,125
Value as at 31 December | 24,499,660 | 27,288,358

| Value of |  | Value of |
| investment in | Income from | investment in | Income from
| associates | associates | associates | associates
| 31/12/2023 | 2023 | 31/12/2022 | 2022
| EUR | EUR | EUR | EUR
Centrages | 3,346,636 | 79,639 | 3,366,997 | 132,473
Immobilière  de  la  Pépinière | 1,794,038 | -71,861 | 1,866,129 | 1,962
Induservices | 145,837 | 47,547 | 98,291 | 26,434
Induservices  FR | 0 | 125,258 | 0 | -108,679
Management  Associates | 0 | 0 | 0 | 154,201
Socfinco | 313,853 | -4,683 | 318,537 | -256,646
Socfinco  FR | 7,106,126 | 2,558,601 | 8,639,420 | 5,223,770
Socfinde | 1,848,000 | 124,448 | 1,723,552 | 23,464
Sodimex | 0 | 0 | 0 | 389,114
Sodimex  FR | 2,116,830 | 342,281 | 2,183,194 | 451,950
Sogescol  FR | 7,533,893 | 2,791,818 | 8,807,489 | 5,249,578
Terrasia | 294,446 | 9,698 | 284,748 | 10,156
TOTAL | 24,499,659 | 6,002,746 | 27,288,357 | 11,297,777

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
79

| Total assets | Revenue | Total assets | Revenue
| 31/12/2023 | 2023 | 31/12/2022 | 2022
| EUR | EUR | EUR | EUR
Centrages | 3,973,190 | 3,921,004 | 4,106,686 | 3,880,683
Immobilière  de  la  Pépinière | 3,738,399 | 512,571 | 4,019,267 | 591,134
Induservices | 1,080,076 | 2,240,040 | 815,459 | 2,700,576
Induservices  FR | 7,823,488 | 3,651,270 | 6,629,460 | 2,937,282
Socfinco | 1,581,948 | 0 | 1,589,976 | 169
Socfinco  FR | 25,146,251 | 26,708,826 | 26,442,122 | 30,292,559
Socfinde | 110,740,705 | 0 | 57,373,319 | 0
Sodimex  FR | 8,126,993 | 21,344,372 | 10,279,841 | 21,313,415
Sogescol  FR | 47,993,053 | 326,642,221 | 48,532,250 | 411,044,829
Terrasia | 655,210 | 0 | 624,891 | 0
TOTAL | 210,859,313 | 385,020,304 | 160,413,271 | 472,760,647

Main data of significant associates accounted for using the equity method

|  |  | Dividend | Dividend
Associate company | Main location | Main activity | received | received
|  |  | 31/12/2023 | 31/12/2022
|  |  | EUR | EUR
Socfinco | Belgium | Rendering  of  services | 0 | 200,000
Socfinco  FR | Switzerland | Rendering  of  services | 4,000,000 | 4,000,000
Sodimex  FR | Switzerland | Purchase  and  sale  of  equipment | 375,000 | 250,000
Sogescol  FR | Switzerland | Trade  of  tropical  products | 3,744,267 | 2,730,328
TOTAL |  |  | 8,119,267 | 7,180,328

Summary financial information of interests held in associates - Statement of financial position

|  | Non-current | Current | Non-current
Associate company | Current assets | assets | liabilities | liabilities
31/12/2022 | EUR | EUR | EUR | EUR
Centrages | 2,209,820 | 1,896,866 | 728,645 | 0
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 | 129,807,171 | 16,927,049 | 89,848,956 | 9,764,105

Consolidated financial statements
80
|
ANNUAL REPORT 2023
|
Socfinaf S.A.

31/12/2023 | EUR | EUR | EUR | EUR
Centrages | 2,473,196 | 1,499,994 | 677,627 | 0
Socfinco  FR | 19,702,567 | 5,443,685 | 8,691,698 | 3,351,275
Socfinde | 107,749,118 | 2,991,587 | 97,660,026 | 6,412,830
Sodimex  FR | 8,104,378 | 22,616 | 3,492,398 | 321,364
Sogescol  FR | 44,344,968 | 3,648,084 | 32,518,033 | 397,673
TOTAL | 182,374,227 | 13,605,966 | 143,039,782 | 8,665,344

Summary financial information of interests held in associates - Income statement

|  |  | Other | Total
|  |  | comprehensive | comprehensive
| Profit from | Net income for | income for the | income for the
Associate company | operations | the period | period | period
2022 | EUR | EUR | EUR | EUR
Centrages | 223,191 | 223,191 | 0 | 223,191
Socfinco  FR | 8,833,675 | 8,833,675 | 51,338 | 8,885,013
Socfinde | 139,836 | 139,836 | 0 | 139,836
Sodimex  FR | 905,204 | 905,204 | 90,864 | 996,068
Sogescol  FR | 8,459,383 | 8,459,383 | 192,819 | 8,652,202
TOTAL | 18,561,289 | 18,561,289 | 335,022 | 18,896,311

2023 | EUR | EUR | EUR | EUR
Centrages | 117,522 | 117,522 | 0 | 117,522
Socfinco  FR | 6,488,998 | 6,488,998 | -91,830 | 6,397,168
Socfinde | 644,758 | 644,758 | 0 | 644,758
Sodimex  FR | 609,180 | 609,180 | -33,645 | 575,535
Sogescol  FR | 6,193,674 | 6,193,674 | -87,087 | 6,106,587
TOTAL | 14,054,132 | 14,054,132 | -212,563 | 13,841,569

Reconciliation of the financial information summarised above to the carrying amount of the investments
in the consolidated financial statements

| Net assets of the | % stake held by | Other IFRS | Value of stake held
Associate company | associate | the Group | adjustments | by the Group
31/12/2022 | EUR |  | EUR | EUR
Centrages | 3,378,041 | 50% | 1,677,977 | 3,366,997
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 | 47,121,159 |  | 2,967,000 | 24,720,652

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
81

31/12/2023 | EUR |  | EUR | EUR
Centrages | 3,295,563 | 50% | 1,698,855 | 3,346,636
Socfinco  FR | 14,921,077 | 50% | -3,805,484 | 7,106,126
Socfinde | 6,667,849 | 20% | 514,430 | 1,848,000
Sodimex  FR | 4,313,232 | 50% | -39,786 | 2,116,830
Sogescol  FR | 15,077,346 | 50% | -4,780 | 7,533,893
TOTAL | 44,275,067 |  | -1,636,765 | 21,951,485

Thereisnogoodwillattributedtotheaboveassociates.
Aggregated information relating to associates that are not significant individually

| 2023 | 2022
| EUR | EUR
Share  of  profit  from  continued  operations  attributable  to  the  Group | 185,598 | 194,814
Share  of  other  comprehensive  income  attributable  to  the  Group | -125,259 | 108,679
Share  of  total  comprehensive  income  attributable  to  the  Group | 60,339 | 303,493
Total  book  value  of  investments  in  associates  held  by  the  Group | 2,548,175 | 2,567,706

Profit  after  tax  fromdiscontinued  operations  for  2023
and 2022 are nil 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.
Note 12. Financial assets at fair value through other comprehensive income

| 2023 | 2022
| EUR | EUR
Fair value as at 1 January | 300,038 | 38
Additions  (*) | 4,500,000 | 0
Transfer | 0 | 300,000
Fair value as at 31 December | 4,800,038 | 300,038

(*)  Movement  in  2023  corresponds  to  ManagementAssociates  capital  increase.

EUR | Cost (historical) | Fair value
| 31/12/2023 | 31/12/2022 | 31/12/2023 | 31/12/2022
Financial  assets  at  fair  value  through  other | 4,800,038 | 300,038 | 4,800,038 | 300,038
comprehensive income

Consolidated financial statements
82
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 13. Deferred taxes
* Components of deferred tax assets and liabilities

| 2023 | 2022
|  | Restated
| EUR | EUR
IAS  2  /  IAS  41:  Agricultural  production | -915,418 | -3,466,822
IAS  12:  Withholding  Tax | -6,235,965 | -3,998,436
IAS  16:  Property,  plant  and  equipment  (*) | -16,196,712 | -26,596,533
IAS  19:  Pension  obligations | 2,545,646 | 3,282,072
IAS  21:  Translation  differences | -1,210,662 | 0
IAS  37:  Provisions  for  risks  and  charges | 375,811 | 757,296
IAS  38:  Formation  expenses | 0 | 516,392
IAS  38:  Research  costs | 360,975 | 337,185
IFRS  9:  Financial  assets  measured  at  fair  value  through  other | -47,377 | -98,386
comprehensive income
IFRS  16:  Leases | -44,883 | 648,482
IAS  41  :  Biological  assets | -480,896 | 0
IFRS  3:  Fair  value  of  investment  property | 0 | -16,580
Others | -83 | -117
Balance as at 31 December | -21,849,564 | -28,635,447
Of which deferred tax assets | 2,735,633 | 4,513,652
Of which deferred tax liabilities | -24,585,197 | -33,149,099

(*) Of  which  EUR  -1.1  million  relating  to  hyperinflation  (reevaluation  of  property,  plant  and  equipment).
The  abovedeferred  taxesare  presented  percategory
of deferred taxes resulting from consolidated
adjustments. They are calculated company per
companyandthenetpositionbetweendeferredtax
liabilities  and  deferred  tax  assets  is  presented.
TheGroupSocfinafiswithinthescopeoftheOECDPillar
Two  modelrules.  Pillar  Two  legislation  was  enacted  or
substantively enacted in certain jurisdictions where
the Group operates to come into effect in January
2024.  TheGroup  appliestheexception  torecognising
anddisclosinginformationaboutdeferredtaxassets
andliabilitiesrelatedtoPillarTwoincometaxes,as
provided in the amendments to IAS 12 published in
May  2023  and  adopted  by  the  EU  in  November  2023.
Based on preliminary analysis, the Company should
qualify as a “partially-owned parent entity” (POPE)
duetothefactthatmorethan20%oftheownership
interest in its profit is held, directly or indirectly,
by one or several persons that are not constituent
entities  of  the  Group.As  a  POPE,  the  Company  should
besubjecttoIIRbasedonitsallocableshareofthe
top-up  tax  (if  any)  of  its  low-tax  constituent  entities.
The Company is controlled by Société Financière des
Caoutchoucs, abbreviated as “Socfin” which is the
largestentitythatconsolidate,andwhichshouldqualify
as the Ultimate Parent Entity (UPE) for Luxembourg
PillarTwopurpose.TheUPE,Socfin,wouldbesubject
to  IIR  but  would  apply  the  IIR  Offset  Mechanism.
However, the Pillar Tow rules were enacted in
Luxembourg close to the reporting date. There are
significant complexities inherent in applying the
legislation  and  performing  the  Pillar  Two  calculations,
therefore the quantitative impact of the Pillar
Two rules is not reasonably estimable at this time.
In addition, quantitative information to indicate
potentialexposure toPillarTwoincometaxesisnot
currentlyknownorreasonablyestimable.Therefore,
theCompany(initspotentialconditionasaPOPE)is
stillinprocessofassessing  thepotentialexposure(if
any) to Pillar Two income taxes as at 31 December
2023.
The Company will report the potential exposure
in its next Annual Report for the period ending
31  December 2024.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
83
* Contingent tax assets and liabilities
Some of the subsidiaries have accumulated tax
losses that are or are not limited over time capital
allowances  limited  or  not  over  time.
LAC,Brabanta,Agripalma  andCamseeds,  haveunused
tax losses and tax latencies, whose recoverability
is uncertain, amounting to EUR 33.5 million (to use
before 2030), EUR 16.6 million (recoverability not
limited), EUR 7.0 million (to use before 2028) and
EUR1.6  million(to  usebefore  2025)respectively  asat
31  December  2023.
Socfinaf has unused tax losses of EUR 250.4 million
(mainly  to  use  before  2040).
Duetotheinstabilitywhichmayexistinthesecountries
withregardstotheevolutionoftaxlegislationorits
application,  no  deferredtax  assets  have  been  booked
related  to  these  tax  losses.
Note 14. Current tax assets and liabilities
* Components of current tax assets

| 2023 | 2022
| EUR | EUR
Current tax assets as at 1 January | 12,438,610 | 13,378,526
Tax  income | 1,133,981 | 1,211,151
Other  taxes | 9,529,471 | -1,710,668
Taxes  paid  or  recovered | -263,201 | 2,333,362
Transfer  (*) | -12,782,933 | -3,022,879
Transfer  to  assets  held  for  sale | -299,780 | 0
Foreign  exchange  differences | -207,054 | 249,118
Current tax assets as at 31 December | 9,549,094 | 12,438,610

(*) Corresponds  mainly  to  offset  of  tax  assets  and  tax  liabilities.
* Components of current tax liabilities

| 2023 | 2022
| EUR | EUR
Current tax liabilities as at 1 January | 40,651,438 | 30,408,824
Tax  expense | 31,897,496 | 37,157,521
Other  taxes  (*) | 38,366,780 | 23,208,381
Taxes  paid  or  recovered | -58,507,765 | -48,988,859
Transfer  (**) | -13,881,093 | -1,177,818
Foreign  exchange  differences | -9,825,719 | 43,389
Current tax liabilities as at 31 December | 28,701,137 | 40,651,438

(*) Other  taxes  are  composed  of  taxes  not  included  in  general  tax  expenses:  VAT,  withholding  tax,  custom  tax,...
(**) Corresponds  mainly  to  offset  of  tax  assets  and  tax  liabilities.
Consolidated financial statements
84
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 15. Income tax expense
* Components of the tax expense

| 2023 | 2022
|  | Restated
| EUR | EUR
Income  tax  expense  (*) | 36,557,147 | 39,796,406
Deferred  tax  expense  /  (income) | 4,971,264 | 6,528,621
Tax expense as at 31 December | 41,528,411 | 46,325,027

(*) Withholding  tax  on  dividends  is  presented  within  income  tax  expense.
* Components of the deferred tax (expense) / income

| 2023 | 2022
|  | Restated
| EUR | EUR
IAS  19:  Pension  obligations | 1,553,831 | -1,450,766
IAS  38:  Intangible  assets | 484,856 | -13,828
IAS  2  /  IAS  41:  Fair  value  of  agricultural  produce | -2,143,595 | 1,420,836
IFRS  9:  Fair  value | 0 | 44,201
IAS  12:  Income  Tax  (*) | 2,523,222 | 1,674,170
IAS  16:  Tangible  assets | 539,398 | 5,280,573
IAS  37:  Provisions  for  risks  and  charges | 25,932 | -510,998
IAS  21:  Foreign  exchange  differences | 1,819,832 | -40,261
IFRS  16:  Leases | 286,364 | -37,374
Others | 0 | 162,066
Deferred tax expense / (income) as at 31 December | 4,971,264 | 6,528,619

(*) Of  which  impact  of  tax  latencies  activated  for  EUR  3.5  million,  and  withholding  tax  for  EUR  -0.7  million.
* Reconciliation between income statement and cash flow statement

| 2023 | 2022
| EUR | EUR
Income  tax  expense  paid  during  the  period | -36,557,147 | -39,796,406
Income  tax  movement  on  financial  position | 1,401,592 | 0
Income tax paid | -35,155,555 | -39,796,406

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
85
* Reconciliation of income tax expense

| 2023 | 2022
|  | Restated
| EUR | EUR
Profit before tax from continuing operations | 84,850,434 | 141,063,191
Nominal  tax  rate  of  the  parent  company | 24.94% | 24.94%
Nominal  tax  rate  of  subsidiaries | from  0%  to  33% | from  1%  to  33%
Income  tax  at  nominal  tax  rates  of  subsidiaries | 18,981,308 | 33,020,896
Unfunded  taxes | 0 | 61,922
Definitively  taxed  income | 2,843,271 | 2,222,265
Use  unrecognised  of  capital  allowances | -192,116 | -858,604
Specific  tax  regimes  in  foreign  countries | 7,215,176 | 6,763,922
Non-taxable  income | -5,601,483 | -1,962,465
Non-deductible  expenses | 6,629,405 | 3,975,975
Use  of  unrecognised  accumulated  tax  losses | -1,410,695 | -1,125,940
Unrecognised  losses  carried  forward | 8,294,995 | 4,104,175
Other  tax  benefits | -10,671 | -40,956
Additional  tax  assessment | 232,357 | 35,862
Impact  of  change  in  tax  rate | 4,552,406 | 113,723
Other  adjustments | -5,542 | 14,252
Tax expense as at 31 December | 41,528,411 | 46,325,027

* Change of rate for the subsidiaries
In  2023,following  changesat  locallevel,  incometax  ratesfor  SACand  PSGhave  beenupdated  respectivelyto
0%  (15%  in  2022)  and  7.5%  (1%  in  2022).
Note 16. Inventories
* Carrying value of inventories by category

| 31/12/2023 | 31/12/2022
| EUR | EUR
Raw  materials G | 24,638,464 | 33,610,606
Consumables | 16,850,225 | 22,944,186
Spare parts | 30,663,090 | 32,159,246
Production  in  progress | 858,179 | 635,495
Finished  products | 17,728,911 | 17,412,198
Down-payments  and  orders  in  progress | 2,945,178 | 4,400,098
Gross amount (before impairment) as at 31 December | 93,684,047 | 111,161,829
Inventory  write-downs | -4,947,343 | -5,392,015
Net amount as at 31 December | 88,736,704 | 105,769,814

Consolidated financial statements
86
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Reconciliation of inventories

| 2023 | 2022
| EUR | EUR
Situation as at 1 January | 111,161,829 | 96,902,172
Change  in  inventory | 5,770,503 | 8,994,376
Fair  value  of  agricultural  products | -9,522,251 | 5,115,356
Transfer  to  assets  held  for  sale | -956,711 | 0
Foreign  exchange  differences | -12,769,323 | 149,925
Gross amount (before impairment) as at 31 December | 93,684,047 | 111,161,829
Inventory  write-downs | -4,947,343 | -5,392,015
Net amount as at 31 December | 88,736,704 | 105,769,814

* Quantity of inventory by category

|  | Production-in- |
31/12/2022 | Raw materials G | progress G | Finished goods G
Crude  Palm  Oil G /  Palm  Kernel  Oil  (tons) | 667 | 0 | 6,079
Rubber  (tons) | 33,460 | 0 | 9,931
Others  (units) | 0 | 0 | 2,150,187

|  | Production-in- |
31/12/2023 | Raw materials G | progress G | Finished goods G
Crude  Palm  Oil G /  Palm  Kernel  Oil  (tons) | 0 | 0 | 10,843
Rubber  (tons) | 33,065 | 0 | 9,799
Others  (units) | 0 | 0 | 2,386,647

Note 17. Trade receivables (current assets)

| 31/12/2023 | 31/12/2022
| EUR | EUR
Trade  receivables | 22,784,333 | 19,073,838
Advances  and  prepayments | 4,451,502 | 4,445,384
TOTAL | 27,235,835 | 23,519,222

The  accounting  and  risk  management  policies  related  to  receivables  are  detailed  in  Notes  1  and  34.
TheGroup  performedECL  analysisontrade  receivablesduringtheyear.Followingthisanalysis,  theGroupdid
not  identify  any  impairment  to  book.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
87
Note 18. Other receivables (current assets)

| 31/12/2023 | 31/12/2022
| EUR | EUR
Social  security | 1,247,379 | 1,017,195
Other  receivables  (*) | 21,252,251 | 19,953,623
Accrued  charges | 631,589 | 470,178
TOTAL | 23,131,219 | 21,440,996

(*) Other receivables include receivables linked to non-operational activities and a receivable of EUR 15.9 million
(EUR  14.3  million  in  2022)  relating  to  the  cash  pooling  at  the  level  of  Socfinaf  and  its  subisidiaries.
Note 19. Cash and cash equivalents
* Reconciliation with the amounts in the financial statements

| 2023 | 2022
| EUR | EUR
Current account | 39,741,654 | 63,638,033
TOTAL | 39,741,654 | 63,638,033

* Reconciliation with the cash flow statement

| 2023 | 2022
| EUR | EUR
Current account | 39,741,654 | 63,638,033
Bank  overdrafts  (*) | -3,470,366 | -10,695,901
TOTAL | 36,271,288 | 52,942,132

(*) See  also  Note  23.
Consolidated financial statements
88
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 20. Share capital and share premium
Issued and fully paid capital amounted to
EUR 35.7 million as at 31 December 2023 (stable
compared to 2022). There is a share premium of
EUR  87.5  million  added  to  the  issued  capital.
As at 31 December 2023, the share capital is
represented  by  17,836,650  shares  with  no  designation
of  par  value.

| Ordinary shares
| 31/12/2023 | 31/12/2022
Number  of  shares  as  at  31  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 21. Legal reserves
InaccordancewithLuxembourgcommerciallaw,the
Companyisrequiredtoallocateaminimumof5%of
itsnet  profitfor  eachfinancial  yearto  alegalreserve.
This requirement ceases to be necessary once the
balanceon  thelegal  reservereaches10%  ofthe  issued
share capital. The legal reserve is not available for
distribution  to  the  shareholders.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
89
Note 22. Pension obligations
* Defined benefit pension plan and post-employment sickness
Besides  thelegislation  onsocial  securityapplicable  locally,most
oftheemployeesoftheGroupinAfricabenefitfromadefined
benefitpensionplan.Thesubsidiariespaybenefitsinthe  eventof
retirementanddepending  oncountriesincaseof  dismissal.The
benefits paid are calculated as a percentage ofsalaryandare
based  on  the  number  of  yearsof  service.The  plans  are  governed
by the local collective agreements in force in each country.
ThebenefitspayabletothestaffoftheCamerooniansubsidiary
Socapalm  are  financed  byassets  that  include  insurance  contracts
whose  price  is  not  quoted  on  active  markets.

|  |  | 2023 |  |  | 2022
|  |  | EUR |  |  | EUR
|  | Fair value of |  |  | Fair value of |
|  | the defined |  |  | the defined |
| Present value | benefit plan | Net amount | Present value | benefit plan | Net amount
| of obligations | assets | recognised | of obligations | assets | recognised
Assets and liabilities recognised in the |  |  |  |  |  |
statement of financial position |  |  |  |  |  |
Present  value  of  obligations | 13,932,928 | -1,431,667 | 12,501,261 | 13,689,169 | -1,322,634 | 12,366,535
Net amount recognised in the statement of | 13,932,928 | -1,431,667 | 12,501,261 | 13,689,169 | -1,322,634 | 12,366,535
financial position for defined benefit plans |  |  |  |  |  |
Components of net charge |  |  |  |  |  |
Current service costs | 716,745 | 0 | 716,745 | 855,755 | 0 | 855,755
Financial  costs | 1,047,943 | 23,504 | 1,071,447 | 1,061,814 | 23,422 | 1,085,236
Interest  income  on  plan  assets | 0 | -170,158 | -170,158 | 0 | -116,216 | -116,216
Early  retirement,  reductions,  liquidations | -5,875 | 0 | -5,875 | 0 | 0 | 0
Past service costs | 300,283 | 0 | 300,283 | 0 | 0 | 0
Defined benefit plan costs | 2,059,096 | -146,654 | 1,912,442 | 1,917,569 | -92,794 | 1,824,775
Movements in liabilities / net assets recognised |  |  |  |  |  |
in the statement of financial position |  |  |  |  |  |
As at 1 January | 13,689,168 | -1,322,634 | 12,366,534 | 13,768,201 | -1,713,679 | 12,054,522
Costs as per income statement | 2,059,096 | -146,654 | 1,912,442 | 1,917,569 | -92,794 | 1,824,775
Contributions  by  employer | -699,064 | -671,544 | -1,370,608 | -900,012 | -669,194 | -1,569,206
Costs  of  services  rendered | -179,306 | 179,306 | 0 | -223,676 | 223,676 | 0
Actuarial  gains  and  losses  of  the  year  recognised | 1,387,967 | 80,332 | 1,468,299 | -954,436 | 51,880 | -902,556
in other comprehensive income |  |  |  |  |  |
Reclassification  of  net  asset | 0 | 449,526 | 449,526 | 0 | 877,478 | 877,478
Foreign  exchange  differences | -2,324,932 | 0 | -2,324,932 | 81,522 | 0 | 81,522
As at 31 December | 13,932,928 | -1,431,667 | 12,501,261 | 13,689,168 | -1,322,634 | 12,366,534

Provisions  are  based  on  actuarial  valuation  reports  prepared  in  January  2024.
Consolidated financial statements
90
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Actuarial gains and losses recognised in other comprehensive income

|  |  | 2023 |  |  | 2022
|  |  | EUR |  |  | EUR
|  | Fair value of |  |  | Fair value of |
|  | the defined |  |  | the defined |
| Present value | benefit plan | Net amount | Present value | benefit plan | Net amount
| of obligations | assets | recognised | of obligations | assets | recognised
Adjustments  of  liabilities  related  to  experience | -912,093 | 0 | -912,093 | -269,868 | 0 | -269,868
Changes  in  financial  assumptions  related  to | 171,518 | 0 | 171,518 | 1,445,002 | 0 | 1,445,002
recognised  liabilities |  |  |  |  |  |
Changes  in  demographic  assumptions  related  to | -647,390 | 0 | -647,390 | -220,698 | 0 | -220,698
recognised  liabilities |  |  |  |  |  |
Return  on  assets  in  the  plan  excl.  interest  income | 0 | -80,332 | -80,332 | 0 | -51,880 | -51,880
Actuarial gains and losses recognised during | -1,387,965 | -80,332 | -1,468,297 | 954,436 | -51,880 | 902,556
the period in other comprehensive income |  |  |  |  |  |

* Actuarial valuation assumptions

| 2023 | 2022
AFRICA |  |
Average  discount  rate | from  5.42%  to  17.11% | from  4.93%  to  18.48%
Expected  long-term  returns  of  plan  assets | 229,001 | 170,158
Future  salary  increases | from  1.74%  to  10.70% | from  1.74%  to  12%
Average  remaining  active  life  of  employees  (in  years) | 19.06 | 19.34

* Sensitivity analysis of the present value of defined benefit obligations

| 2023 | 2022
| EUR | EUR
Actuarial value of the obligation |  |
-  Pension  plan | 13,932,928 | 13,689,169
-  Fair  value  of  plan  assets | -1,431,667 | -1,322,634
Total as at 31 December | 12,501,261 | 12,366,535
Actuarial rate (on pension plan) |  |
Increase  of  0.5% | 13,515,787 | 13,285,487
Decrease  of  0.5% | 14,375,266 | 14,093,019
Expected future salary increases (on pension plan) |  |
Increase  of  0.5% | 14,360,688 | 14,067,916
Decrease  of  0.5% | 13,526,805 | 13,306,104

Thesensitivity analysisisbasedonthesameactuarial methodused tomeasure theobligationsofthedefinedbenefitplans.The
mortality  rate  which  can  be  impacted  by  the  effect  of  the  climate  change  is  included  in  this  sensitivity  analysis.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
91
* Impact of the defined benefit pension plan on future cash flows

| 2024 | 2023
Estimated  contributions  for  the  next  financial  year  (in  euros) | 1,812,594 | 1,810,894

| 2023 | 2022
Weighted  average  duration  of  defined  benefit  plan  obligations  (in  years) | 6.1 | 6.2

* Pension scheme with defined benefit obligations

| 2023 | 2022
| EUR | EUR
Accounted  expense  for  the  defined  contribution  pension  plan | 1,005,730 | 1,049,949

Note 23. Financial debts

31/12/2022 |  |  |
|  |  | TOTAL
EUR | < 1 year | > 1 year | Restated
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  (*) | 55,908,831 | 129,331,004 | 185,239,835
Bank  overdrafts  (**) | 10,695,901 | 0 | 10,695,901
TOTAL | 85,009,389 | 172,611,270 | 257,620,659

31/12/2023 |  |  |
EUR | < 1 year | > 1 year | TOTAL
Loans  held  by  financial  institutions | 13,137,581 | 17,357,744 | 30,495,325
Lease  liabilities | 2,778,042 | 24,950,880 | 27,728,922
Other  loans  (*) | 47,495,679 | 85,420,573 | 132,916,252
Bank  overdrafts  (**) | 3,470,366 | 0 | 3,470,366
TOTAL | 66,881,668 | 127,729,197 | 194,610,865

(*) ThisbalanceincludesanamountofEUR120.0millionpayabletoSocfinandshareholdersbySocfinaf(2022:EUR174.9million).
See note 31.
(**)See  also  Note  19.
Mostof  theconsolidated  borrowingsare  denominatedinEuros  orCFAfrancs(whoseparity  islinked  tothe  Euro).
Thefixedinterestrates  fromfinancialinstitutionsandwhicharepeggedtotheEurovarybetween5.50%and7.09%.
As  explained  in  Note  34,  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
92
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Long-term debt analysis by interest rate

31/12/2022 |  |  |  |  |
|  |  |  |  | TOTAL
EUR | Fixed Rate | Rate | Floating rate | Rate | Restated
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 | 9,331,005 | 0%  to  3.00% | 0 | - | 9,331,005
| 129,331,005 |  | 0 |  | 129,331,005
TOTAL | 163,937,129 |  | 0 |  | 163,937,129

31/12/2023 |  |  |  |  |
EUR | Fixed Rate | Rate | Floating rate | Rate | TOTAL
Loans held by financial institutions |  |  |  |  |
Côte  d'Ivoire | 175,639 | 5.50% | 0 | - | 175,639
Nigeria | 7,240,279 | 5.00%  to  10.00% | 0 | - | 7,240,279
Cameroon | 8,316,825 | 5.70%  to  7.09% | 0 | - | 8,316,825
Ghana | 1,625,000 | 4.00% | 0 | - | 1,625,000
| 17,357,743 |  | 0 |  | 17,357,743
Other loans |  |  |  |  |
Europe | 80,000,000 | 6.00%  to  6.25% | 0 | - | 80,000,000
Sierra Leone | 5,420,573 | 0%  to  3.00% | 0 | - | 5,420,573
| 85,420,573 |  | 0 |  | 85,420,573
TOTAL | 102,778,316 |  | 0 |  | 102,778,316

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
93
* Long-term debt analysis by currency

|  |  |  |  |  |  |  | TOTAL EUR
31/12/2022 | EUR | CFA | NGN | STN | USD | GHS | CDF | Restated
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 | 9,331,004 | 0 | 0 | 129,331,004
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 | 12,395,581 | 35,690 | 38,702 | 172,611,268

31/12/2023 | EUR | CFA | NGN | STN | USD | GHS | CDF | TOTAL EUR
Loans  held  by  financial  institutions | 1,625,000 | 8,492,464 | 7,240,279 | 0 | 0 | 0 | 0 | 17,357,743
Other  loans | 80,000,000 | 0 | 0 | 0 | 5,420,573 | 0 | 0 | 85,420,573
Lease  liabilities | 0 | 20,289,243 | 3,236,272 | 112,602 | 1,260,191 | 25,509 | 27,063 | 24,950,880
TOTAL | 81,625,000 | 28,781,707 | 10,476,551 | 112,602 | 6,680,764 | 25,509 | 27,063 | 127,729,196

* Long-term debt analysis by maturity

31/12/2022 |  |  |  |  |  |
|  |  |  |  |  | TOTAL
EUR | 2024 | 2025 | 2026 | 2027 | 2028 and above | Restated
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 | 9,331,004 | 144,631,004
TOTAL | 20,209,839 | 13,408,647 | 129,918,042 | 4,024,079 | 20,350,663 | 187,911,270

(*)Those  amounts  correspond  to  the  interests  and  capital  to  be  repaid  on  the  EUR  120  million  long-term  loan,  disclosed  in  Note  31.

31/12/2023 |  |  |  |  |  |
EUR | 2025 | 2026 | 2027 | 2028 | 2029 and above | TOTAL
Loans  held  by  financial  institutions | 8,362,989 | 4,773,585 | 4,061,408 | 2,685,043 | 1,051,182 | 20,934,207
Lease  liabilities | 2,332,498 | 1,812,884 | 1,534,512 | 121,920 | 19,149,066 | 24,950,880
Other  loans | 6,937,466  (*) | 85,000,000  (*) | 0 | 0 | 3,487,181 | 95,424,647
TOTAL | 17,632,952 | 91,586,469 | 5,595,920 | 2,806,963 | 23,687,429 | 141,309,733

(*)  Those  amounts  correspond  to  the  interests  and  capital  to  be  repaid  on  the  EUR  80  million  long-term  loan,  disclosed  in  Note  31.
* Short-term debt analysis
Theshort-termdebtsaremainlycomposedoftheshareholderadvanceswithBolloréandMopoli.Thedetailoftheinterestrates,
currency  and  maturity  are  disclosed  in  Note  31  Information  on  related  party.
Consolidated financial statements
94
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Net cash surplus / (net debt)

| 31/12/2023 | 31/12/2022
|  | Restated
| EUR | EUR
Cash  and  cash  equivalents | 39,741,654 | 63,638,033
Long-term  debt  net  of  current  portion | -102,778,317 | -163,937,128
Short-term  debt  and  current  portion  of  long-term  debt | -64,103,627 | -83,477,324
Lease  liabilities | -27,728,922 | -10,206,207
Net debt | -154,869,212 | -193,982,626
Cash  and  cash  equivalents | 39,741,654 | 63,638,033
Loan  bearing  interest  at  a  fixed  rate | -166,881,944 | -232,802,668
Loan  bearing  interest  at  a  variable  rate | 0 | -14,611,784
Lease  liabilities | -27,728,922 | -10,206,207
Net debt | -154,869,212 | -193,982,626

* Reconciliation of net cash surplus / (net debt)

|  |  | Short-term debt |  |
|  | Long-term debt, | and current |  |
| Cash and cash | net of current | portion of long- | Debt related to |
| equivalents | portion | term debt | leases | TOTAL
As at 1 January 2022 - Restated | 63,091,770 | -240,634,695 | -75,991,474 | -9,390,392 | -262,924,791
Cash  flows | 992,576 | 66,189,365 | 21,018,464 | 1,737,556 | 89,937,961
Foreign  exchange  differences | -446,314 | 1,409,412 | 1,020,847 | -78,293 | 1,905,652
Transfers | 0 | 19,178,526 | -29,525,164 | 0 | -10,346,639
Other  movements  with  no  impact  on  cash  flows | 0 | -10,079,732 | 0 | -2,475,073 | -12,554,805
As at 31 December 2022 - Restated | 63,638,032 | -163,937,124 | -83,477,327 | -10,206,202 | -193,982,622
Cash  flows | -14,319,139 | 37,988,001 | 31,318,102  (*) | 4,623,622 | 59,610,586
Foreign  exchange  differences | -9,216,071 | 9,990,476 | 138,407 | 2,274,529 | 3,187,341
Transfers | 0 | 13,180,334 | -12,082,811 | 0 | 1,097,523
Transfer  to  assets  held  for  sale | -361,169 | 0 | 0 | 45,866 | -315,303
Other  movements  with  no  impact  on  cash  flows | 0 | 0 | 0 | -24,466,733 | -24,466,733
As at 31 December 2023 | 39,741,653 | -102,778,313 | -64,103,629 | -27,728,918 | -154,869,208

(*) Of  which  EUR  7.2  million  relating  to  movements  on  bank  overdrafts  and  EUR  24.1  million  relating  to  repayment  of  borrowings.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
95
Note 24. Trade and other payables

| 31/12/2023 | 31/12/2022
|  | Restated
| EUR | EUR
Non-current other payables | 1,332,110 | 1,650,572
Trade  creditors:  suppliers | 35,295,036 | 42,111,681
Advances  received  and  invoices  to  be  received | 11,102,007 | 8,074,757
Subtotal trade payables | 46,397,043 | 50,186,438
Staff  cost  liabilities | 6,110,763 | 5,102,003
Other  payables  (*) | 11,555,848 | 7,773,177
Accruals  (**) | 6,372,256 | 9,167,312
Subtotal current other payables | 24,038,867 | 22,042,492
TOTAL | 71,768,020 | 73,879,502
Non-current  liabilities | 1,332,110 | 1,650,572
Current  liabilities | 70,435,910 | 72,228,930

(*) Other  payables  include  cash  pooling  at  the  level  of  Socfinaf  for  EUR  0  million  (EUR  0.3  million  in  2022).  See  also  Note  31.
(**)This  amount  includes  the  Okomu  grant  part  of  the  loans,  for  EUR  2.2  million  (2022:  EUR  6.2  million).
Consolidated financial statements
96
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 25. Financial instruments

|  | Financial |  |  |  |
|  | assets at |  |  |  |
|  | fair value |  |  |  |
|  | through other | Other financial |  |  | Other financial
31/12/2022 | Loans and | comprehensive | assets and |  | Loans and | assets and
Restated | borrowings | income | liabilities | TOTAL | borrowings (*) | liabilities (*)
EUR | At cost | At fair value | At cost |  | At fair value | At fair value
Assets |  |  |  |  |  |
Financial  assets  at  fair  value  through  other | 0 | 300,038 | 0 | 300,038 | 0 | 0
comprehensive income |  |  |  |  |  |
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  (**) | 163,937,128 | 0 | 0 | 163,937,128 | 159,078,419 | 0
Other  non-current  liabilities | 0 | 0 | 1,650,572 | 1,650,572 | 0 | 1,650,572
Short-term  debts  (**) | 72,781,424 | 0 | 10,695,900 | 83,477,324 | 72,781,424 | 10,695,900
Trade  payables  (current) | 0 | 0 | 50,186,438 | 50,186,438 | 0 | 50,186,438
Other  payables  (current)  (**) | 0 | 0 | 22,042,491 | 22,042,491 | 0 | 22,042,491
Total liabilities | 236,718,552 | 0 | 84,575,401 | 321,293,953 | 231,859,843 | 84,575,401

(*)  For  information  purposes.
(**)  See  note  23.

31/12/2022 |  | Fair Value |
EUR | Level 1 | Level 2 | Level 3 | TOTAL
Financial  assets  at  fair  value  through  other | 0 | 0 | 300,038 | 300,038
comprehensive income

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
97

|  | Financial |  |  |  |
|  | assets at |  |  |  |
|  | fair value |  |  |  |
|  | through | Other |  |  | Other
|  | other com- | financial |  | Loans and | financial
| Loans and | prehensive | assets and |  | borrowings | assets and
31/12/2023 | borrowings | income | liabilities | TOTAL | (*) | liabilities (*)
EUR | At cost | At fair value | At cost |  | At fair value | At fair value
Assets |  |  |  |  |  |
Financial  assets  at  fair  value  through  other  comprehensive | 0 | 4,800,038 | 0 | 4,800,038 | 0 | 0
income
Long-term  advances | 1,502,170 | 0 | 513,733 | 2,015,903 | 1,502,170 | 513,733
Other non-current assets | 0 | 0 | 3,089,715 | 3,089,715 | 0 | 3,089,715
Trade  receivables | 0 | 0 | 27,235,836 | 27,235,836 | 0 | 27,235,836
Other  receivables | 0 | 0 | 23,131,220 | 23,131,220 | 0 | 23,131,220
Cash  and  cash  equivalents  (**) | 0 | 0 | 39,741,654 | 39,741,654 | 0 | 39,741,654
Total assets | 1,502,170 | 4,800,038 | 93,712,158 | 100,014,366 | 1,502,170 | 93,712,158
Liabilities |  |  |  |  |  |
Long-term  debts  (**) | 102,778,317 | 0 | 0 | 102,778,317 | 100,229,159 | 0
Other  non-current  liabilities  (***) | 0 | 0 | 1,332,110 | 1,332,110 | 0 | 1,332,110
Short-term  debts  (**) | 60,633,260 | 0 | 3,470,367 | 64,103,627 | 60,633,260 | 3,470,367
Trade  payables  (current)  (***) | 0 | 0 | 46,397,043 | 46,397,043 | 0 | 46,397,043
Other  payables  (current)  (***) | 0 | 0 | 24,038,868 | 24,038,868 | 0 | 24,038,868
Total Liabilities | 163,411,577 | 0 | 75,238,388 | 238,649,965 | 160,862,419 | 75,238,388

(*) For  information  purposes.
(**)See  note  23.
(***)See  Note  24.

31/12/2023 |  | Fair Value |
EUR | Level 1 | Level 2 | Level 3 | TOTAL
Financial  assets  at  fair  value  through  other | 0 | 0 | 4,800,038 | 4,800,038
comprehensive income

TheGroup  estimatedthefairvalueof  thefinancialinstrumentsby  comparingtheirinterestratesto  theactualinterestrateas  atyear-end,
providedby  theEuropeanCentralBank.In  caseofmaterialdifferences  betweentheinterestrates,the  estimatedfairvalueof  thefinancial
instruments  is  disclosed  in  this  note.
Consolidated financial statements
98
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 26. Staff costs and average number of staff

| 2023 | 2022
|  | Restated
Staff costs | EUR | EUR
Remuneration | 69,702,788 | 65,739,733
Social  security  and  pension  expenses | 9,207,095 | 7,036,495
TOTAL | 78,909,883 | 72,776,228

Average number of employees | 2023 | 2022
Directors | 118 | 106
Employees | 5,126 | 4,534
Workers  (including  temporary  workers) | 18,696 | 20,813
TOTAL | 23,940 | 25,453

Note 27. Other financial income

| 2023 | 2022
| EUR | EUR
Interest  from  receivables  and  cash  and  cash  equivalents | 419,665 | 346,457
Exchange  gains | 22,174,456 | 8,040,379
Others | 258,206 | 267,079
TOTAL | 22,852,327 | 8,653,915

Note 28. Financial expenses

| 2023 | 2022
| EUR | EUR
Interest  and  finance  expense | 11,245,986 | 14,896,038
Interest  expenses  on  lease  liabilities | 3,411,779 | 1,041,390
Exchange  losses | 26,848,781 | 24,584,287
Others | 1,516,828 | 641,659
TOTAL | 43,023,374 | 41,163,374

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
99
Note 29. Net earnings per share
The undiluted net earnings per share (basic) is the
profitfortheyearattributabletoordinaryshareholders
divided by the average number of ordinary shares
outstanding  during  the  year.As  there  are  no  potential
dilutiveordinaryshares,thedilutednetearningsper
share is identical to the undiluted net earnings per
share.

| 2023 | 2022
|  | Restated
Net  profit  /  (loss)  for  the  period  (in  euros) | 28,248,339 | 73,185,734
Average  number  of  shares | 17,836,650 | 17,836,650
Net earnings per share undiluted (in euros) | 1.58 | 4.10

Note 30. Dividends and Directors’ fees
The  Board  will  propose  to  theAnnual  General  Meeting  of  29  May  2024  not  to  pay  any  dividend.

| 2023 | 2022
Dividends  and  interim  dividends  distributed  during  the  period | 0 | 0
Number of shares | 17,836,650 | 17,836,650
Dividend  per  share  paid  during  the  period | 0 | 0

Consolidated financial statements
100
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 31. Information on related party
* Directors’ remuneration

| 2023 | 2022
| EUR | EUR
Short-term  benefits | 488,730 | 356,995

* Other related party transactions

31/12/2022 |  |  |  |
|  |  | Other related | TOTAL
EUR | Parent | Associates | parties | Restated
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  18) | 0 | 15,122,089 | 7,464 | 15,129,553
| 0 | 29,834,117 | 7,464 | 29,841,581
Non-current liabilities |  |  |  |
Financial  debts  (Note  23) | 120,000,000 | 4,976,156 | 4,284,667 | 129,260,823
| 120,000,000 | 4,976,156 | 4,284,667 | 129,260,823
Current liabilities |  |  |  |
Financial  debts  (Note  23) | 14,611,491 | 292 | 40,405,480 | 55,017,263
Trade  payables | 0 | 15,503,605 | 71,063 | 15,574,668
Other  payables  (Note  24) | 0 | 3,159,945 | 660 | 3,160,605
| 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

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
101

31/12/2023 |  |  |  |
|  |  | Other related |
EUR | Parent | Associates | 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 | 18,248,109 | 0 | 18,248,109
Other  receivables  (Note  18) | 0 | 16,003,218 | 14,339 | 16,017,557
| 0 | 34,251,327 | 14,339 | 34,265,666
Non-current liabilities |  |  |  |
Financial  debts  (Note  23) | 80,000,000 | 3,395,056 | 3,487,181 | 86,882,237
| 80,000,000 | 3,395,056 | 3,487,181 | 86,882,237
Current liabilities |  |  |  |
Financial  debts  (Note  23) | 0 | 0 | 40,705,753 | 40,705,753
Trade  payables | 0 | 16,879,628 | 6,031 | 16,885,659
Other  payables  (Note  24) | 1,250,000 | 3,912,871 | 660 | 5,163,531
| 1,250,000 | 20,792,499 | 40,712,444 | 62,754,943
Income statement |  |  |  |
Services  and  goods  delivered | 0 | 198,623,366 | 0 | 198,623,366
Services  and  goods  received | 0 | 44,144,608 | 658,211 | 44,802,819
Financial  income | 0 | 254,618 | 0 | 254,618
Financial  expenses | 5,786,549 | 310,356 | 2,003,287 | 8,100,192

Related party transactions are carried out at arm’s
length.
Other related party transactions are carried out
with Bolloré Participations andPalmboomen Cultuur
Maatschappij  (Mopoli).
MopoliisaDutch companywhichismainlyownedby
Mr  Hubert  Fabri  throughFinancière  Privée,  which  also
owns  Socfin.
Bolloré  Participations  is  ashareholder  anddirector  of
Socfinaf.
In 2014, Socfinaf obtained a cash advance of
EUR 35 million from Mopoli. This advance bears an
annualinterest(netoftax)of6%(2022:4%).Interest
is payable in arrears at the end of each calendar
quarter.Theamountofinterestrecognisedfortheyear
2023isEUR1.0million.Asat31December2023,the
outstanding  balanceamountstoEUR20.4millionandis
repayable  on  demand  with  final  maturity  on  July  2026.
In 2016, Socfinaf obtained a loan ofEUR 20 million
from Bolloré Participations.The loan has an annual
interest  rate  of  6%  (2022:4%).  Theamount  of  interest
recognisedfor  theyear2022isEUR  1.0million.  Asat
31December2023,theoutstandingbalanceamounts
toEUR20.3millionandisrepayableondemandwith
final  maturity  on  June  2025.
Socfinaf did not pay any dividend in 2023 to its
parent company Socfin (2022: nil). Socfinaf has
borrowedanamountofEUR80.0millionfromSocfin
(2022:EUR120.0million).Annualinterestatrateof
6.25%(2022:4.25%)ispayableonthisloan.  Assuch,
Socfinafhaspaidaninterest  ofEUR5.8  millionin2023
compared  to  EUR  8.8  million  in  2022.
Consolidated financial statements
102
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 32. Off balance sheet commitments
In 2019, a subsidiary of Socfinaf, Okomu Oil Palm
Company obtained a loan of Naira 10 billion. The
contractstipulatesthatOkomuwilluseasmortgage
guarantee, up to the loan granted, the 11,416 ha
plantation.Asat31December2023,thebalanceofthe
loan  amounts  to  EUR  7  million  (2022:  EUR  15  million).
In2019,asubsidiaryofSocfinaf,PlantationsSocfinaf
Ghana(PSG),obtainedaloanofEUR16.5millionfor
theconstructionof anoilmill.Thisloanconsists of
acreditlineofEUR15millionandabankoverdraft
ofEUR1.5million.ThecontractstipulatesthatPSG
pledges  theoil  mill  asmortgage  guarantee,up  to  the
amount  of  the  loangranted.As  at31  December  2023,
thebalanceoftheloan amounts to EUR 4.9million
(2022:  EUR8.1  million)and  theoverdraft  tonil  (2022:
nil).
In 2021, a subsidiary of Socfinaf, Okomu Oil Palm
Company obtained a loan of Naira 2 billion, whose
contractstipulatesthatOkomuwilluseasmortgage
guarantee, up to the loan granted, the 11,416 ha
plantation.Asat31December2023,thebalanceofthe
loan  amounts  to  EUR  1  million  (2022:  EUR  3  million).
In compliance with Group’s commitments on
responsible management, most of the plantations
within the Group have been certified RSPO. RSPO
certification contains engagements to support
reforestation projects, named compensation plans.
SincemostoftheplantationshavebeencertifiedRSPO,
the Group is committed into several reforestation
projectsinAfrica,representinganoverallbudgetof
USD 19.6 million (EUR 17.8 million, undiscounted),
that  should  be  expensed  between  2023  and  2047.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
103
Note 33. Segment information
InaccordancewithIFRS8,theinformationanalysedby
management  isbasedon  thegeographicaldistribution
ofpoliticaland  economicrisks.Asa  result,thesectors
presented are Europe, Sierra Leone, Liberia, Côte
d’Ivoire, Ghana, Nigeria, Cameroon, São Tomé and
Principe  and  Congo  (DRC).
Products from Côte d’Ivoire, Ghana, Nigeria and
Cameroon’s  operatingsectors  come  from  the  palm  oil
andrubbersales.Those from theLiberiasectorare
only from the rubber sales, while those from Sierra
Leone, Ghana, São Tomé and Principe and Congo
(DRC)come solelyfromthepalmoilsales.Those in
the European segment come from the provision of
administrative  services,  of  assistance  in  managingthe
areas  under  plantation  andthe  marketing  of  products
outsideoftheGroup.The  segmentresult  ofthe  Group
is  the  profit  from  operations.
Thestated figuresoriginatefrominternalreporting.
Since they do not reflect any consolidation or
IFRS adjustments or restatements, they are not
directly comparable to the amount reported in the
consolidatedstatementofthefinancial positionand
income statement.
* Segmental breakdown of profit / (loss) as at 31 December 2022

| Revenue from |  |
| ordinary business | Revenue from | Segmental profit /
| with external | ordinary business | (loss) (*)
EUR | customers | between segments | Restated
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
Depreciation,  amortisation  and  impairment  of  bearer  plants |  | -72,844
Fair  value  of  agricultural  production |  |  | 5,115,356
Other  IFRS  adjustments |  |  | -92,817
Consolidation  adjustments  (intra-group  and  others) |  |  | 2,351,041
Financial  income  and  gain  on  disposals |  |  | 8,730,381
Financial  expenses  and  loss  on  disposals |  |  | -42,996,783
Group share of income from associates |  |  | 11,297,778
Income  tax  expense  and  deferred  tax  (expense)  /  income |  | -46,325,027
Net Profit / (loss) for the period |  |  | 106,035,944

(*) Profit / (loss)for the period includeother expenses for EUR128.1 million, corresponding mainly toexternal services
invoiced to plantations and related directly to the operational activity (road maintenance, …), and other operating
expenses  for  EUR  25.0  million  not  related  directly  to  the  operational  activity  (other  taxes,  property  taxes,  …).
Consolidated financial statements
104
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Segmental breakdown of profit / (loss) as at 31 December 2023

| Revenue from |  |
| ordinary business | Revenue from |
| with external | ordinary business | Segmental profit /
EUR | customers | between segments | (loss) (*)
Europe | 0 | 0 | -3,017,768
Sierra Leone | 44,340,974 | 0 | 13,979,176
Liberia | 36,813,393 | 0 | -1,791,812
Côte  d'Ivoire | 160,456,976 | 142,039 | 15,070,482
Ghana | 34,514,182 | 0 | 18,494,533
Nigeria | 113,518,677 | 0 | 50,396,027
Cameroon | 156,987,751 | 0 | 27,824,017
São  Tomé  and  Principe | 5,511,788 | 0 | -2,496,052
Congo  (DRC) | 10,923,105 | 0 | -4,555,130
TOTAL | 563,066,846 | 142,039 | 113,903,472
Depreciation,  amortisation  and  impairment  of  bearer  plants |  | -9,381,337
Fair  value  of  agricultural  production |  |  | -9,522,251
Other  IFRS  adjustments |  |  | 5,506,230
Consolidation  adjustments  (intra-group  and  others) |  |  | 4,704,160
Financial  income  and  gain  on  disposals |  |  | 23,005,905
Financial  expenses  and  loss  on  disposals |  |  | -43,365,744
Group share of income from associates |  |  | 6,002,745
Income  tax  expense  and  deferred  tax  (expense)  /  income |  | -41,528,411
Net Profit / (loss) for the period |  |  | 49,324,768

(*) Profit /(loss) for the periodinclude other expenses for EUR118.5 million, corresponding mainlyto external services
invoicedto  plantationsandrelated  directlytothe  operationalactivity(road  maintenance,…),other  operatingexpenses
forEUR14.7millionandotheroperationalincomeforEUR11.7millionthatarenotrelateddirectlytotheoperational
activity  (government  grants,  other  taxes,  property  taxes,  …).
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
105
* Total segmental assets
G

| 31/12/2023 | 31/12/2022
| EUR | EUR
Europe | 1,489,353 | 2,063,733
Sierra Leone | 123,185,982 | 128,721,882
Liberia | 115,836,618 | 121,732,913
Côte  d'Ivoire | 151,924,753 | 166,346,688
Ghana | 37,518,498 | 57,837,090
Nigeria | 81,865,152 | 145,216,147
Cameroon | 178,037,147 | 184,081,225
São  Tomé  and  Principe | 26,624,876 | 28,111,519
Congo  (DRC) | 51,567,843 | 68,260,622
TOTAL | 768,050,223 | 902,371,819
IFRS  3  /  IAS  16:  Bearer  plants | -18,545,344 | -25,692,506
IAS  2  /  IAS  41:  Agricultural  production | 1,036,347 | 11,304,647
Other  IFRS  adjustments | -6,556,682 | -7,621,916
Consolidation  adjustments  (intra-group  and  others) | -52,372,458 | -55,200,786
Total consolidated segmental assets G | 691,612,086 | 825,161,258
Consolidated assets not included in segmental assets G |  |
Right-of-use  assets | 29,232,550 | 8,169,574
Investments in associates | 24,499,660 | 27,288,358
Financial  assets  at  fair  value  through  other  comprehensive  income | 4,800,038 | 300,038
Long-term  advances | 2,015,903 | 1,664,770
Deferred  tax | 2,735,632 | 4,513,652
Other non-current assets | 3,089,715 | 2,619,576
Consolidated non-current assets | 66,373,498 | 44,555,968
Other  debtors | 23,131,220 | 21,440,996
Current  tax  assets | 9,549,095 | 12,438,610
Consolidated current assets | 32,680,315 | 33,879,606
Total of consolidated assets in the segmental assets G | 99,053,812 | 78,435,573
Assets  classified  as  held  for  sale | 6,313,418 | 0
Total assets | 796,979,317 | 903,596,831

Consolidated financial statements
106
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Total segmental liabilities
G

| 31/12/2023 | 31/12/2022
|  | Restated
| EUR | EUR
Europe | 3,261,194 | 55,702,251
Sierra Leone | 2,453,806 | 3,426,717
Liberia | 7,008,789 | 13,882,723
Côte  d'Ivoire | 29,593,122 | 22,364,064
Ghana | 597,314 | 1,066,056
Nigeria | 3,674,454 | 6,950,565
Cameroon | 27,352,202 | 20,840,351
São  Tomé  and  Principe | 4,435,416 | 3,492,126
Congo  (DRC) | 2,393,585 | 1,045,995
TOTAL | 80,769,881 | 128,770,849
Other  IFRS  adjustments | 2,294,545 | 6,346,208
Consolidation  adjustments  (intra-group  and  others) | -12,628,515 | -62,888,128
Total consolidated segmental liabilities G | 70,435,910 | 72,228,929
Consolidated liabilities not included in segmental liabilities G |  |
Total  equity | 463,930,610 | 485,307,105
Non-current  liabilities | 166,147,779 | 219,777,491
Current  financial  debts | 64,103,627 | 83,477,324
Current  lease  liabilities | 2,778,042 | 1,532,064
Current  tax  liabilities | 28,701,137 | 40,651,438
Provisions | 597,934 | 622,480
Total consolidated liabilities not included in segmental liabilities G | 726,259,218 | 831,367,902
Liabilities associated with assets classified as held for sale | 284,279 | 0
Total equity and liabilities | 796,979,317 | 903,596,831

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
107
* Costs incurred for acquisition of segmental assets
G
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

* Costs incurred for acquisition of segmental assets
G
during 2023

EUR | Intangible assets | Tangible assets | Biological assets | TOTAL
Sierra Leone | 0 | 2,535,268 | 0 | 2,535,268
Liberia | 0 | 2,492,307 | 1,238,634 | 3,730,941
Côte  d'Ivoire | 15,621 | 5,647,697 | 3,685,695 | 9,349,013
Ghana | 0 | 1,580,958 | 160,462 | 1,741,420
Nigeria | 0 | 10,397,083 | 759,758 | 11,156,841
Cameroon | 0 | 12,548,621 | 3,801,263 | 16,349,884
São  Tomé  and  Principe | 0 | 811,212 | 0 | 811,212
Congo  (DRC) | 0 | 106,557 | 0 | 106,557
TOTAL | 15,621 | 36,119,704 | 9,645,812 | 45,781,136

* Information by sector of activity
Revenue  from  external  customers:

| 2023 | 2022
| EUR | EUR
Palm | 370,064,088 | 408,462,769
Rubber | 186,846,082 | 222,252,985
Other  agricultural  activities | 1,717,350 | 469,211
Others | 4,439,331 | 6,156,969
TOTAL | 563,066,850 | 637,341,934

Consolidated financial statements
108
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
* Information by geographical region
Revenue  from  external  customers  by  origin  of  the  customers  and  geographical  location:

EUR |  |  |  |  |  |  |  |  |  | 2022
Geographical |  |  |  |  |  |  |  | Other |  |
location |  |  | Côte |  |  |  | Sierra | African | Rest of the |
Origin | Europe | Liberia | d’Ivoire | Nigeria | Cameroon | Congo | Leone | countries | world | TOTAL
Europe | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
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 | 7,196,400 | 0 | 0 | 0 | 205,800 | 0 | 0 | 379,575 | 0 | 7,781,775
Principe
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

EUR |  |  |  |  |  |  |  |  |  | 2023
Geographical |  |  |  |  |  |  |  | Other |  |
location |  |  | Côte |  |  |  | Sierra | African | Rest of the |
Origin | Europe | Liberia | d’Ivoire | Nigeria | Cameroon | Congo | Leone | countries | world | TOTAL
Europe | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Sierra Leone | 3,640,928 | 0 | 0 | 0 | 0 | 0 | 40,700,046 | 0 | 0 | 44,340,974
Liberia | 34,963,720 | 1,849,674 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 36,813,394
Côte  d'Ivoire | 89,813,516 | 0 | 27,089,750 | 0 | 0 | 0 | 0 | 1,266,572 | 42,287,138 | 160,456,976
Ghana | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34,514,182 | 0 | 34,514,182
Nigeria | 0 | 0 | 0 | 113,518,677 | 0 | 0 | 0 | 0 | 0 | 113,518,677
Cameroon | 11,639,991 | 0 | 0 | 0 | 145,347,760 | 0 | 0 | 0 | 0 | 156,987,752
São  Tomé  and | 5,222,997 | 0 | 0 | 0 | 0 | 0 | 0 | 288,791 | 0 | 5,511,788
Principe
Congo  (DRC) | 0 | 0 | 0 | 0 | 0 | 10,923,105 | 0 | 0 | 0 | 10,923,105
TOTAL | 145,281,153 | 1,849,674 | 27,089,750 | 113,518,677 | 145,347,760 | 10,923,105 | 40,700,045 | 36,069,545 | 42,287,138 | 563,066,847

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
109
* Information by business segment and revenue category
Revenue  from  external  customers  by  business  segment  and  geographical  area

EUR |  |  |  | 2022
Category |  |  |  |
Business |  |  | Other agricultural |
Segment | Palm | Rubber | 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

EUR |  |  |  | 2023
Category |  |  |  |
Business |  |  | Other agricultural |
Segment | Palm | Rubber | products | TOTAL
Sierra Leone | 44,340,974 | 0 | 0 | 44,340,974
Liberia | 0 | 36,813,393 | 0 | 36,813,393
Côte  d'Ivoire | 30,964,234 | 126,880,126 | 2,612,616 | 160,456,976
Ghana | 33,301,860 | 1,136,571 | 75,751 | 34,514,182
Nigeria | 101,319,579 | 12,017,173 | 181,926 | 113,518,677
Cameroon | 143,702,547 | 9,998,817 | 3,286,387 | 156,987,751
São  Tomé  and  Principe | 5,511,788 | 0 | 0 | 5,511,788
Congo  (DRC) | 10,923,105 | 0 | 0 | 10,923,105
TOTAL | 370,064,087 | 186,846,079 | 6,156,680 | 563,066,846

Consolidated financial statements
110
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 34. Risk management
Capital management
TheGroupmanagesitscapitalandadaptsaccording
to changes in economic conditions and investment
opportunities. To maintain or adjust the capital
structure,theGroupmayissuenewshares,repaypart
ofthecapitaloradjustthepaymentofdividendsto
shareholders.
The Group also manages its capital by closely
monitoring  the  ratio  of  debt  over  equity.
Financial risk
The  financialrisk  forthe  companieswithinthe  Group
originatesmainly  fromchangesintheselling  priceof
agriculturalcommodities,foreignexchangeand,  toa
lesser  extent,  interest  rate  movements.
Potential  risk
ApartfromGhanaandSierraLeone(refertoNote1.27),
countrieswheretheGroupoperatesdonotcorrespond
to a hyperinflationary economies or suffer from an
immediatethreat  ofpricedevaluation.  Nevertheless,
inaminorityofthosecountries,thepoliticalsystem
andeconomicstabilityremainfragileandcouldlead
to  currency  devaluation  or  hyperinflation.
Risk  management  and  opportunities
TheGroup  regularlyreviews  itssourcesof  financingas
wellascurrencymovements.Moreover,itsdecisions
are based on a variety of risks and opportunities,
whichthemselvesdependonseveralfactors,including
interest  rates,  currency  and  counterparties.
Market risk
* Price risk in commodities market
Potential  risk
The Group markets its finished products at prices
that 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
Themain  policyof  theGroup’scompanies  hasalways
been to control its production costs. It aims to
generate  marginsfor  the  viabilityof  structuresin  the
event  ofa  significant  dropin  the  sellingprices  of  raw
materials
G
and,  conversely,  to  generate  profit  margins
during  the  market  downturns.
In parallel with this main policy, secondary policies
havealsobeenimplementedtoimproveorconsolidate
profit  margins,  such  as:
- theproductionofagriculturalproductsofsuperior
quality  and  branded,  in  particular  for  rubber  and;
- theuse  ofthe  Group’sexpertise  inthecommercial
sector.
The Group reduces its exposure to price risk by
investing into different geographical markets and
products.
* Foreign currency risk
Potential  risk
TheGroupcarriesout  transactionsin  localcurrencies,
the main ones being US dollar and Nigerian naira.
In addition, financial instruments hedging against
fluctuations  inexchange  ratemay  notbe  availablefor
certain  currencies.This  createsexposure  to  exchange
ratefluctuations, whichmayhaveanimpact onthe
financial  result  denominated  in  euro.
In Nigeria, the availability of hard currency is
extremely  limited.  The  gap  between  the  central  bank
rate(CBN)andOTCremainsstrongasat2023year-
end.Forconsolidationpurposes,theGroupusesthe
CentralBankofNigeria(CBN)rates.Theseratesare
disclosed in Note 1.9 to the financial statements.
The  impactof  theGroup’sNigerian  operationson  the
consolidatedresult isdisclosed inNote 33(Segment
information)  to  the  financial  statements.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
111
Risk  management  and  opportunities
Apartfromthecurrentcurrencyhedginginstruments
foroperationaltransactions,whichremainrelatively
limited, the main policy of the Group is to finance
its development projects in the local currencies of
a region. This practice is indeed favorable for the
significant  investments  made  in  the  plantations,as  an
attempt  to  reduce  borrowings  wherever  possible.
Management closely monitors developments in the
Nigerian foreign exchange markets and is keen to
present  a  fair  view  of  the  financial  statements.
* Interest rate risk
Potential  risk
Thefirstrisklinkedtotheinterestratedenotesachange
in  cashflows  relating  to  short-termborrowings,  often
on  a  variable  rate,  as  well  asa  relatively  high  level  of
base  interestrates  on  cashand  cashequivalents.  The
second risk, is linked to developing markets, when
borrowing  in  a  local  currency.
Risk  management  and  opportunities
The first risk is maintained under control by an
active policy of monitoring the evolution of local
financialmarketsontheonehandand,whennecessary,
short-term  debt  consolidation  in  the  longterm  on  the
other.  Anothersystematicpolicykeepsaneyeonthe
secondrisk,byputtinglocalandinternationalbanks
in competition with international lenders who can
offerrealinvestmentanddevelopmentopportunities
at attractive rates.
Credit risk
Potential  risk
Creditriskarises  fromthepotentialinabilityofclients
to  meet  their  contractual  obligations.
Risk  management  and  opportunities
To manage credit risk, the Group ensures the
payment  of  local  salesin  cash  or  the  guaranteeof  the
receivablesbyobtainingapprovedbillsofexchange.
The export sales of the plantations are centralised
in the Group’s sales structure, which applies either
acashpaymentpolicyoracommercialcreditpolicy
whose  limits  are  defined  by  its  Board  of  Directors.
Detailsonimpairmentoffinancialassetsandliabilities,
including  measurement  ofexpected  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  in  time  or  at  a  reasonable
price.Thisriskmainlyaffectsplantations,whichare
both  the  main  source  of  cash  and  financing  needs.
Risk  management  and  opportunities
Given the specific economic and technological
environmentofeachplantation,theGroupmanages
the  liquidityrisk  in  a  decentralisedmanner.  However,
boththeavailable  cashandtheimplementation  ofthe
financing  are  supervised  by  the  Group  Management.
The Group chooses, whenever possible, to maintain
financial liabilities and cash position (as mentioned
respectivelyinNotes23and19)withlowcreditrisk
institutions.
Emerging market risks
Potential  risk
Current or future political instability in certain
countries  inwhich  the  Group  operatesmay  affect  the
Group’sprofitability  and  itsability  todo  business  and
generate  revenue.
The  politicalsystem  insome  ofthe  Group’s  marketsis
relativelyfragileandcanbe  potentiallythreatened  by
cross-border  conflicts  or  wars  between  rival  groups.
Risk  management  and  opportunities
Through its activities, the Group contributes to the
improvement of the quality of life in the countries
in which it operates. It also focuses on improving
the stability of its markets, which may lead to
Consolidated financial statements
112
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
an appreciation in the value of the Group’s local
companies.
Bydiversifyingthecountries,economiesandcurrencies
inwhichthe Group generatesitsrevenues andcash
flows,itreduces  itsexposuretoemergingmarketrisk.
Itisawareofitsenvironmentalandsocialresponsibility
towards the local population and is continually
implementing  initiatives  to  this  end.
Risk of expropriation
Potential  risk
Certain countries in which the Group operates have
politicalregimes thatmay callintoquestionforeign
commercial interests by limiting their activities
and may attempt to exert control over the Group’s
assets.  This  is  known  as  the  risk  of  expropriation.
Risk  management  and  opportunities
The diversified geographical distribution of the
countriesinwhichtheGroupgeneratesitsrevenues
and  its  cash  flows  reduces  its  exposure  to  this  risk.
Credibility risk
Potential  risk
With the Group being linked to the state of the
financial markets, the Group may be exposed to a
credibility risk when said markets lose confidence.
This  depends  on  the  Group’s  ability  to  maintain  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
TheGrouphaspublished  itsresponsiblemanagement
policy in 2017, which was updated in 2022. This
complements the Group’s sustainable development
commitments  formalised  in  2012.
TheGroup’sinitiativestomonitorthisriskaredetailed
inthe  informationprovidedin  theannualsustainable
development report available on request at Group
headquarters.
Risk sensitivity
* Exchange rate risk
The Group is exposed to changes in value arising
fromfluctuationsinexchangeratesgeneratedbyits
operating activities. However, as local turnover was
made  inthe  local  currency,  andexport  salesaremade
in  US  dollar,  the  Group’s  exposure  is  mainly  limited  to
fluctuations  indollar  againstthe  euro.  Theimpact  on
the result of a 10% increase or decrease (EUR/USD)
inforeigncurrencyfinancialinstrumentsamountsto
EUR  0.1  million.
In the case where the currency of sale is not the
functional currency oftheCompanyanditislinked
to  astrong  currency,the  conversionis  ensured  atthe
time  ofthe  conclusionof  thecontract.The  localsales
concluded in the local currency in 2023 (including
US dollars) amounted to EUR 374.0 million. The
globalsales(mainlyconcludedinUSdollars)in2023
amounted  to  EUR  189.1  million.
* Interest rate risk
The breakdown of fixed rate loans and variable
rate loans is described in Note 23. Following the
reimbursement  of  thevariable  loan  rate  arrangement
bySocfinafin2023,theGroup’sexposuretointerest
rate risk decreased in 2023. The management
maintains its policy to closely monitor the interests
rate  evolution.
* Credit risk
Asat31December2023,thetradereceivablesfrom
global customers and local customers amount to
EUR 18.1 million and EUR 9.1 million respectively.
Accounts  receivablefrom  globalcustomers  aremainly
receivablesrelatedtothesaleofrubber.Palmoilis
soldlocallytolocal  playerswhich  entailsa  widerange
of customers. The marketing of rubber is entrusted
to  SogescolFR  (equityaccountedcompany).  Ittrades
either on the physical markets or directly with end
customers.
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
113

| 2023 | 2022
| EUR | EUR
Trade  receivables | 29,023,129 | 25,333,540
Provision  incurred  mainly  on  non-operational  receivables | -1,787,293 | -1,814,318
Other  receivables | 23,131,220 | 21,440,996
Total net receivables | 50,367,056 | 44,960,218
Amount  not  yet  due | 50,345,512 | 44,704,982
Amount  due  less  than  6  months | 0 | 0
Amount  due  for  more  than  6  months  and  less  than  one  year | 0 | 255,236
Amount  due  for  more  than  one  year | 21,544 | 0
Total net receivables | 50,367,056 | 44,960,218

Note 35. Contingent liabilities
SociétédesCaoutchoucsdu  GrandBereby  (“SOGB”),a
publiclimitedcompanyincorporatedunderIvorianlaw
andsubsidiaryoftheGroup,isinvolvedinadispute
with the Caisse Nationale de Prévoyance Sociale
(“CNPS”)oftheCôted’Ivoire.Thisdisputeconcerns
the  tax  auditof  the  benefits  in  kindthat  SOGB  should
havepaidtoCNPSforhavingprovidedhousingtoits
employees.
Following an initial analysis for the period from
1  January  2010  to31  December  2013,  CNPSestimated
the due amount at CFA 182 million, equivalent to
EUR277,000.  BasedonSOGB’scalculations,  however,
theamountowedisofCFA 32million,equivalentto
EUR  48,000.
Following a contestation, the case was brought
beforetheCourtofSassandra.Thelatterinvitedthe
twopartiestoreachanamicablesettlementforthe
disputebetweenthemandtosubmitatransactional
agreement,  if  necessary.
In the absence of an amicable settlement for the
dispute,  it  would  be  up  to  the  Sassandra  Court  to  rule
on the merits.
TheCNPScarriedoutasecondanalysiscoveringthe
years 2014 through 2018. The CNPS added to the
previousamountasumofCFA 1,650million,equivalent
to  EUR2.5  million.The  SOGB  hasrecorded  aprovision
of CFA 250 million, equivalent to EUR 381,000,
which correspondstotheamountitconsidersto be
effectively  due.
The matter of housing on plantations in rural areas
isageneralissueandconcernsmostagriculturaland
forestrycompanies,particularlythoseintherubber,
oil  palm  and  banana  sectors.
For this reason, actions have been undertaken by
companies in the sector, which are 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.
TheCNPS  hadalwaysshown  leniencyfordetermining
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
workinggroupthatcomprisesmembersofCGECIand
UNEMAF. Working group meetings were scheduled
totakeplaceinthecourseof2020,butthesewere
postponedduetothe health situation andhavenot
been  resumed  to  date.
At the date of the closing of the accounts, the
amicableprocedure isthereforestillinprogress.Its
Consolidated financial statements
114
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
outcome will determine whether or not the case is
referred  to  the  SassandraCourt,  which  has  the  power
alone to enforce the parties. Insofar as there is no
legal  constraintto  date,  andbased  on  theabove,  the
managementis  ofthe  opinionthatno  provisionshould
be  recorded  becausethe  probability  of  aclaim  is  very
low.
Note 36. Political and economic environment
The  Company  holds  interestsin  subsidiaries  operating
in Africa.
Giventheeconomicandpolitical  instabilityin  someof
the relatedAfricancountries(SierraLeone,Liberia,
Côte d’Ivoire, Ghana, Nigeria, Cameroon, São Tomé
andPrincipeandCongoDRC),theseholdings posea
risk in terms of exposure to political and economic
changes.
Note 37. Events after the closing date
Therearenomaterialeventsafter the closing date
to mention.
Note 38. Assets classified as held for sale

| 31/12/2023
ASSETS | EUR
Non-Current Assets |
Right-of-use  assets | 33,851
Property,  plant  and  equipment | 2,241,077
Biological  assets | 1,969,162
| 4,244,090
Current Assets |
Inventories | 956,711
Current  biological  assets | 21,188
Trade  receivables | 2,973
Other  receivables | 427,509
Current  tax  assets | 299,777
Cash  and  cash  equivalents | 361,169
| 2,069,328
Assets classified as held for sale | 6,313,418

Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
115

| 31/12/2023
LIABILITIES | EUR
Non-Current Liabilities |
Long-term  lease  liabilities | 35,449
| 35,449
Current Liabilities |
Short-term  lease  liabilities | 10,417
Trade  payables | 119,584
Other  payables | 118,829
| 248,830
Liabilities associated with assets classified as held for sale | 284,279

Asat31December2023,thecarryingamountsoftheassetsclassifiedasheldforsaleandrelatedliabilities
areattributabletoSRC.Inthelastquarterof2023,themanagementofSocfinafconductednegociationson
thedisposal  ofSRC.Accordingly,SRC  wasreclassifiedas  adisposalas  at31  December2023.  Thetransactionis
subject  to  local  regulatory  approval  and  is  expected  to  close  in  the  first  half  of  2024.
Note 39. Auditor’s fees

| 2023 | 2022
| EUR | EUR
Audit  (VAT  included) | 732,412 | 758,845

Theauditfees  includeallfeespaidto  theindependentstatutoryauditorof  theGroupnamelyEYaswellasthose
paidto  memberfirms  withinEYnetworkforthe  relevantyears.This  firmperformed  nomaterialconsulting  work
or  other  non-audit  services  in  2023  or  in  2022.
116
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Company’s management report
Presented by the Board of Directors
at the Annual General Meeting of 29 May 2024
Ladies  and  gentlemen,
Wearepleasedtopresent  ourannualreport  andtosubmit  foryourapproval  theannualaccountsofourcompany
at  31  December  2023.
Activities
Socfinaf  holds  financial  interests  in  portfolio  companies  which  operatedirectly  or  indirectly  in  tropicalAfrica  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)
2023 2022
INCOME
Value  adjustments  in  respect  of  financial  assets
0 0.4
Income  from  equity  investments
Dividends  received
45.2 46.9
Interests
1.3 1.6
Capital  gain  on  disposal  of  financial  fixed  assets
0 0.1
Other  interest  receivable  and  similar  income
4.5 5.8
Total income
51.0 54.8
EXPENSES
Impairment:
On  financial  assets (1) 33.1 (2) 66.1
Other  external  expenses 3.4 2.9
Interest  payable  and  similar  expenses 8.7 18.6
Income  tax 3.2 4.7
Total expenses
48.4 92.3
PROFIT/LOSS FOR THE FINANCIAL YEAR 2.6 -37.5
(1) At  at  31  December  2023,  the  Board  of  Directors  decided  to  reduce  the  value  of  its  advance  to  Salala  Rubber
by  EUR  32,960,912  and  reduce  the  acquisition  value  of  Socfinco  by  EUR  115,675.
(2) Asat  31  December  2022,  the  Board  of  Directors  decided  to  reduce  theacquisition  value  of  Brabanta  by  EUR
17,868,990  and  the  value  of  its  advance  by  EUR  48,250,914.
Company’s management report
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
117
Revenue  from  financial  assets
(EUR million)
2023 2022
Dividends
Socapalm 10.6 16.0
Okomu 10.9 15.2
Befin 13.4 7.5
Socfinco  FR 4.0 4.0
Sogescol  FR 3.7 2.7
Safa 2.0 0.9
Others 0.5 0.6
Total of dividends 45.1 46.9
InterestonreceivablesamountedtoEUR1.6million
and  foreign  exchange  gains  to  EUR  4.3  million.
TheprofitfortheyearamountedtoEUR2.6million
comparedtoalossofEUR37.5millionon31December
2022.
Balance sheet
As at 31 December 2023, Socfinaf’s total assets
amounted to EUR 349.3 million compared to
EUR  398.6  million  on  31  December  2022.
Socfinaf’s assets mainly consist of financial fixed
assets of EUR 187.3 million, long term loan
receivables of EUR 129.5 million, amounts owed
by affiliated undertakings and other receivables
for EUR 31.2 million, and cash and equivalent of
EUR  1.3  million.
The equity amounted to EUR 223.9 million before
appropriation  of  results.
Taking into account the positive cash flow of
EUR 36 million generated by the activity and the
repayment  of  theadvances  from  the  subsidiaries(SAC
andPSG)forEUR24million,Socfinaf’sindebtednessfell
from  EUR177  million  on1  January  toEUR  125  million
on  31  December  2023.
Portfolio
Movements
Duringtheyear,anon-recurringimpairmentonSocfinco
wasrecordedforatotalamountofEUR0.1million.
In addition, Socfinaf has participated in the capital
increase  of  ManagementAssociates.
Valuation
The investments are estimated at a total value of
EUR656.4millionandincludesanunrealisedgainof
EUR469.2  millioncompared  totheiracquisition  costs,
potentially  adjusted.
Company’s management report
118
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Investments
The  main  direct  and  indirect  investments  have  evolved  during  the  last  months  as  follows:
PROJECTS IN OPERATION AT 31 DECEMBER 2023
(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  2022
58,436 40,675 140,233 57,224 31,615 132,867 112,852 35,406 7,782 16,345 637,895
Actual 2023
44,330 35,144 109,398 48,455 34,417 105,107 129,003 35,943 5,512 10,806 562,132
Forecasts  2023
43,734 39,300 121,705 52,703 26,198 150,325 116,447 36,010 5,768 15,499 612,699
NET RESULT
Actual  2022
16,483 1,278 23,863 4,858 5,560 38,955 16,269 4,189 909 -671 109,469
Actual 2023
11,124 -19,172 8,035 4,099 12,781 31,581 18,194 934 -2,463 -4,752 57,723
Forecasts  2023
7,904 167 13,460 4,028 8,375 35,136 11,548 3,416 -1,775 -1,374 78,679
PALM PRODUCT
SURFACEAREA
(HA)
Mature
12,349 - 7,471 - 6,140 19,044 29,458 5,306 1,879 6,072 87,719
Immature
- - 20 - - - 2,975 - - - 2,995
Total
12,349 - 7,491 - 6,140 19,044 32,433 5,306 1,879 6,072 90,714
PRODUCTION
FFB
Actual  2022
218,363 - 148,447 - 94,048 247,175 475,157 73,423 27,328 54,291 1,338,232
Actual 2023
209,067 - 144,174 - 132,495 272,639 456,398 72,094 22,496 49,871 1,359,233
Forecasts  2023
232,301 - 152,586 - 110,109 307,517 486,602 80,736 25,475 62,016 1,457,342
CRUDE
PRODUCTION
Actual  2022
51,919 - 35,301 - 25,375 54,101 146,231 16,526 6,429 13,769 349,653
Actual 2023
50,249 - 34,159 - 35,472 69,563 138,783 16,096 4,871 13,232 362,425
Forecasts  2023
55,752 - 35,637 - 28,628 72,578 154,312 18,260 6,215 15,604 386,986
EXTRACTION
RATE
Actual  2022
23,78 - 22,78 - 26,98 21,77 22,45 21,94 23,53 24,13 22,96
Actual 2023
24,04 - 22,49 - 26,77 22,28 22,28 22,19 21,65 25,72 23,12
Forecasts  2023
24,00 - 22,50 - 26,00 22,16 22,46 22,50 23,70 24,00 23,00
TURNOVER
Actual  2022
58,436 - 39,919 - 30,688 120,544 111,190 24,811 7,782 16,345 409,715
Actual 2023
44,330 - 30,973 - 33,282 93,962 127,240 26,236 5,512 10,806 372,340
Forecasts  2023
43,734 - 31,165 - 25,263 136,493 113,537 22,858 5,768 15,499 394,317
Company’s management report
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
119
PROJECTS IN OPERATION AT 31 DECEMBER 2023
(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
RUBBER
SURFACE
AREA(HA)
Mature
- 14,047 12,906 - 942 6,265 1,936 3,509 - - 39,605
Immature
- 2,668 2,879 - - 1,070 - 917 - 12 7,546
Total
- 16,715 15,785 - 942 7,335 1,936 4,426 - 12 47,151
PRODUCTION
Actual  2022
- 27,401 65,815 39,554 - 8,124 - 6,377 - - 147,271
Actual 2023
- 27,694 64,309 38,559 - 9,907 - 9,004 - - 149,472
Forecasts  2023
- 29,082 67,000 39,000 - 9,975 - 9,473 - - 154,530
TURNOVER
Actual  2022
- 40,675 100,313 57,224 927 12,323 1,662 10,595 - - 228,179
Actual 2023
- 35,144 78,425 48,455 1,135 11,145 1,763 9,707 - - 189,792
Forecasts  2023
- 39,300 90,541 52,703 935 13,832 2,910 13,152 - - 218,382
The production data correspond to the quantities in tons of
MilledRubberandCrudePalmOil.Rubberproductionandsales
are presented after elimination of intercompany transactions.
Consolidated  figures  may  however  differ.
Allocation of profit
The profit of the year of EUR 2,658,856 increased by retained
earnings of EUR 93,870,859, give total retained earnings of
EUR  96,529,714  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
96,529,714
100,785,391
Treasury shares
The  Company  did  not  buy  back  its  own  shares  during  the  2023  financial  year.
Research and development
During  the  financial  year  2023,  Socfinaf  did  not  incur  any  expenses  for  research  and  development.
Company’s management report
120
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Financial instruments
During  the  financial  year  2023,  the  company  did  not  make  use  of  any  financial  instruments.
FinancialriskmanagementpoliciesaredescribedinthenotestotheCompany’sconsolidatedfinancialstatements.
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 May 2006
concerning Public Takeover Bids
a)  b)  f) TheissuedcapitaloftheCompanyissetat
EUR 35,673,300 represented by 17,836,650
shares  without  parvalue,  fullypaid  up.  Each
shareentitlesthe  holderto  onevote  without
limitation  or  restriction.
c) 1February2017,Socfindeclaredthatitholdsa
58.85%  direct  stake  in  Socfinaf.
On3  September2014,CompagnieduCambodge
declared  that  it  holds  adirect  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 lArtois, 0.49% by
Bolloré  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. ofthestatutes: “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 10th 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
particularthat:“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 inArt. 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.
Company’s management report
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
121
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
restrictionsonthe  transferofsecuritiesorvoting
rights;
• the agreements to which the Company is party,
andwhich  takeeffectare  modifiedorterminated
intheeventofachange  ofcontrolofthe  Company
following  a  takeover  bid;
• the indemnities provided in the event of the
resignationordismissalofmembersoftheBoard
of  Directors  or  staff  following  a  takeover  bid.
Responsible management 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
keyinitiativesaimedatimprovinglong-termeconomic
performance, social well-being, health, safety and
natural  resource  management.
An implementation plan for this policy has been
defined  and  implemented  throughout  2023.
The efforts and actions undertaken by the Socfin
Group  in  thisarea  are  detailedin  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 as at 31 December
2023beforeallocationoftheresultforthefinancial
year amounts to EUR 693.1 million. This valuation
incorporates the unrealised capital gains of the
portfolio.
Asareminder,themarket  sharepricewasEUR10.80
at  the  end  of  2023  against  EUR  11.80  a  year  earlier.
Significant events after the reporting date
Asat31December2023and2022,theCompanyhad
no  significant  off-balance  sheet  commitments.
Company’s management report
122
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Company’s management report
Main risks and uncertainties
Itmust  beemphasizedthat  theGroup’sinvestmentsin
Africa  may  be  subject  to  political  and  economic  risks.
On-site executives and managers follow the day-to-
day  evolution  of  the  situation.
Inaddition,theCompanymaybeexposedtoforeign
exchange  riskson  long-term  advancesto  subsidiaries.
Theassessment  ofthis  riskisdescribedin  thenotes  to
the  Company’s  statutory  financial  statements.
Perspectives
The result for the 2024 financial year will depend to a large extent on the dividend distributions of the
subsidiaries;  these  are  not  yet  fixed.
Statutory appointments
ThetermservedasdirectorbyMr.CyrilleBollorérepresentingBolloréParticipationsexpirethisyear.Itwill
beproposedat  thenext  AnnualGeneralMeetingtorenew  thismandateforsixyearsuntil  the  AnnualGeneral
Meeting  of  2030.
The Board of Directors
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
123
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
WehaveauditedthefinancialstatementsofSocfinaf
S.A. (the “Company”), which comprise the balance
sheet as at 31 December 2023, and the profit and
lossaccountfortheyearthenended,andthenotes
to the financial statements, including a summary of
significant  accounting  policies.
Inour  opinion,the  accompanyingfinancialstatements
giveatrueandfairviewofthefinancialpositionofthe
Companyasat31December2023,andoftheresultsof
itsoperationsfortheyearthenendedinaccordance
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 July 2016
ontheauditprofession(“Lawof23July2016”)and
with International Standards on Auditing (“ISAs”)
as adopted for Luxembourg by the “Commission de
Surveillance du Secteur Financier” (“CSSF”). Our
responsibilities  underthe  EU  Regulation  Nº  537/2014,
the Law of 23 July 2016 and ISAs as adopted for
LuxembourgbytheCSSFarefurtherdescribed  inthe
“Responsibilitiesofthe“réviseurd’entreprisesagréé”
fortheauditofthefinancialstatements”sectionof
ourreport.WearealsoindependentoftheCompany
in accordance with the International Code of Ethics
for ProfessionalAccountants, including International
IndependenceStandards,issuedbytheInternational
EthicsStandardsBoardforAccountants(“IESBA Code”)
as  adopted  for  Luxembourg  by  the  CSSFtogether  with
the ethical requirements that are relevant to our
audit of the financial statements, and have fulfilled
ourotherethicalresponsibilitiesunderthoseethical
requirements.  We  believe  thatthe  auditevidence  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
ourauditofthefinancialstatements of the current
period.  Thesematterswereaddressedin  thecontext
ofthe auditofthefinancialstatements asa 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 December 2023, the shares in affiliated
undertakings amounts to 187 million euros and
represents 54% of the total assets of the balance
sheet.Sharesinaffiliatedundertakingsarevaluedat
historicalacquisitioncost,respectivelytheirnominal
value,  whichincludes  incidentalexpenses.In  thecase
of durable depreciation in value according to the
opinionoftheBoardofDirectors,valueadjustments
aremadeinrespectoffinancialfixedassets,sothat
theyarevaluedatthelowerfiguretobeattributed
to them at the balance sheet date. These value
adjustments are not continued if the reasons for
which  thevalue  adjustmentsweremade  haveceased
toapply.Intheeventofanimpairmentthat,inthe
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.
Theassessmentofthedurabledepreciationinvalue
of  theseshares  inaffiliated  undertakings  requiresthe
exerciseofthe Board ofDirectors’ judgementin its
choice of the elements to be considered according
to the shares in affiliated undertakings, whether
market  elements  (sharesprice  when  applicable)and/
or historical elements (adjusted net equity) and/or
forecast elements (discounted future cash flows to
shareholders).
124
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
P ortr ait du Groupe
Duetothesizeofthebalanceandjudgementincluded,
we  considered  this  area  to  be  a  key  audit  matter.
Our answer
Ouraudit  proceduresoverthe  impairmentofthe  shares
inaffiliatedundertakingsandofthe  loanstoaffiliated
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
valueadjustmentstoberecordedonsharesinthe
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
December2023usedforthevaluationofshares
in affiliated undertakings to the official stock
markets  quotations  ;
- whentheBoardofDirectorsreliedon historical
data, we reconciled the adjusted net equity
used in the valuation of the shares in affiliated
undertakings as at 31 December 2023 to the
financial information of the related affiliated
undertakings  and  assessedthe  appropriateness  of
evidencesupportingtheadjustmentsmadetothe
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
informationincluded  inthe  annualreportingincluding
themanagement  reportandthe  corporategovernance
statement but does not include the financial
statementsandourreportof“réviseurd’entreprises
agréé”  thereon.
Ouropiniononthefinancialstatementsdoesnotcover
the  otherinformation  andwedo  notexpress  anyform
of  assurance  conclusion  thereon.
Inconnectionwithourauditofthefinancialstatements,
ourresponsibilityistoreadtheotherinformationand,
in  doing  so,consider  whether  theother  information  is
materiallyinconsistentwiththefinancialstatements
orourknowledgeobtainedintheauditorotherwise
appearstobemateriallymisstated.If,basedonthe
work  we  have  performed,  we  conclude  that  there  is  a
materialmisstatementofthisotherinformation,we
arerequiredtoreportthisfact.Wehavenothingto
report  in  this  regard.
Responsibilities of the Board of Directors and of
those charged with governance for the financial
statements
The Board of Directors is responsible for the
preparation and fair presentation of the financial
statementsin  accordancewithLuxembourg  legaland
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 and marking up 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
abilitytocontinueasagoingconcern,disclosing,as
applicable,mattersrelatedtogoingconcernandusing
thegoingconcernbasisofaccounting  unlesstheBoard
ofDirectorseitherintendstoliquidatetheCompany
orto  ceaseoperations,  orhasno  realisticalternative
but  to  do  so.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the financial statements
Theobjectivesofourauditaretoobtainreasonable
assurance about whether the financial statements
as a whole are free from material misstatement,
whetherduetofraudorerror,andtoissueareport
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,theLawof23July2016andwiththeISAs
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
Audit report on the Company’s financial statements
Audit report on the Company’s financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
125
Audit report on the Company’s financial statements
aggregate, they could reasonably be expected to
influencethe  economicdecisionsofuserstakenonthe
basis  of  these  financial  statements.
AspartofanauditinaccordancewithEURegulation
N°537/2014,theLawof23July2016andwithISAs
asadoptedforLuxembourgbytheCSSF,weexercise
professional judgment and maintain professional
skepticism  throughout  the  audit.  We  also:
• Identify and assess the risks of material
misstatementofthefinancialstatements,whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
toprovideabasisforouropinion.Therisk ofnot
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
asfraudmayinvolvecollusion,forgery,intentional
omissions, misrepresentations, or the override of
internal  control.
•Obtainanunderstandingofinternalcontrolrelevant
to the audit in order to design audit procedures
thatareappropriateinthecircumstances,butnot
for the purpose of expressing an opinion on the
effectiveness  of  the  Company’s  internal  control.
•Evaluate the appropriateness of accounting
policiesused  andthereasonablenessofaccounting
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
thefinancialstatementsor,ifsuchdisclosuresare
inadequate,  tomodify  ouropinion.  Ourconclusions
are  based  on  the  auditevidence  obtained  up  to  the
date of our report of the “réviseur d’entreprises
agréé”.However, futureeventsor conditionsmay
causethe  Companyto  ceaseto  continueasa  going
concern.
•Evaluate the overall presentation, structure and
contentofthefinancial statements, including the
disclosures, and whether the financial statements
represent  the  underlying  transactions  and  events  in
a manner that achieves fair presentation.
• Assesswhetherthefinancialstatementshavebeen
prepared, in all material respects, in compliance
with the requirements laid down in the ESEF
Regulation.
We  communicate  withthose  charged  with  governance
regarding, among other matters, the planned scope
andtiming  oftheauditand  significantauditfindings,
including any significant deficiencies in internal
control  that  we  identify  during  our  audit.
Wealsoprovidethosechargedwithgovernancewith
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.
Fromthematterscommunicatedwiththosecharged
with governance, we determine those matters that
were  ofmost  significance  in  theaudit  of  thefinancial
statements of the current period and are therefore
thekeyauditmatters.Wedescribethesemattersin
ourreportunless law orregulationprecludes public
disclosure  about  the  matter.
Report on other legal and regulatory requirements
We have been appointed as “réviseur d’entreprises
agréé”  by  theGeneral  Meeting  of  theShareholders  on
26 May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments,  is  4  years.
Themanagementreportisconsistentwiththefinancial
statements  andhas  been  preparedin  accordancewith
applicable  legal  requirements.
The accompanying corporate governance statement
on pages31to36istheresponsibilityof the Board
of Directors. The information required by article
68ter paragraph (1) letters c) and d) of the law of
19December  2002onthe  commercialandcompanies
register and on the accounting records and annual
accountsofundertakings, asamended,is consistent
126
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
P ortr ait du Groupe
Audit report on the Company’s financial statements
withthefinancialstatementsandhasbeenprepared
in  accordance  with  applicable  legal  requirements.
We have checked the compliance of the financial
statementsoftheCompanyasat31December2023
with relevant statutory requirements set out in the
ESEF Regulationthat are applicable to the financial
statements.  For  the  Company,  it  relates  to  :
• Financial statements prepared in valid xHTML
format
In our opinion, the financial statements of the
Company as at 31 December 2023, have been
prepared,  inall  material  respects,in  compliancewith
the  requirements  laid  down  in  the  ESEF  Regulation.
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
Company  in  conducting  the  audit.
Ernst  &  Young
Société  anonyme
Cabinet  de  révision  agréé
Anthony  Cannella
Company financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
127
1. Balance sheet as at 31 December 2023
2023 2022
ASSETS
Note EUR EUR
FIXED ASSETS
Financial assets
3
Shares  in  affiliated  undertakings 187,264,604.55 182,880,279.55
Loans  to  affiliated  undertakings 129,533,966.49 178,795,759.27
316,798,571.04 361,676,038.82
CURRENT ASSETS
Debtors
Amounts  owed  by  affiliated  undertakings
becoming  due  and  payable  within  one  year 28,993,195.61 33,284,161.85
Other  debtors
becoming  due  and  payable  within  one  year 1,936,640.00 1,452,480.00
30,929,835.61 34,736,641.85
Investments
Shares  in  affiliated  undertakings
248,406.09 248,406.09
Cash at bank and in hand
1,301,619.70 1,939,330.90
TOTAL ASSETS
349,278,432.44 398,600,417.66
The  accompanying  notes  form  an  integral  part  of  the  financial  statements.
Company financial statements
Company financial statements
128
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
2023 2022
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
93,870,858.69 131,413,608.00
Profit  for  the  financial  year
2,658,855.71 -37,542,749.31
223,912,557.53 221,253,701.82
CREDITORS
Amounts  owed  to  credit  institutions
becoming  due  and  payable  within  one  year 7.00 9.03
Trade  creditors
becoming  due  and  payable  within  one  year 225,304.17 220,624.09
Amounts  owed  to  affiliated  undertakings 5
becoming  due  and  payable  after  more  than  one  year 80,000,000.00 120,000,000.00
becoming  due  and  payable  within  one  year 1,252,128.31 14,947,456.73
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 20,000,000.00 20,201,643.84
becoming  due  and  payable  within  one  year
20,705,753.25 20,203,836.00
Other  creditors
Tax  authorities 2,130,637.50 1,665,126.39
Other  creditors
becoming  due  and  payable  within  one  year 1,052,044.68 108,019.76
125,365,874.91 177,346,715.84
TOTAL CAPITAL, RESERVES AND LIABILITIES 349,278,432.44 398,600,417.66
The  accompanying  notes  form  an  integral  part  of  the  financial  statements.
Company financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
129
2. Income statement for the year ended 31 December 2023
2023 2022
Note EUR EUR
Raw materials
G
and consumables and others external expenses
Other  external  expenses
-2,936,663.69 -2,685,678.73
Value adjustments
in respect of current assets -4,500.00 0.00
Other operating expenses
-421,143.32 -248,765.87
Income from participating interests
derived  from  affiliated  undertakings 7 45,173,448.69 46,958,007.91
Other interest receivable and similar income
derived  from  affiliated  undertakings 8 5,872,854.29 7,273,633.68
other  interest  and  similar  income 10,081.36 109,529.96
Value adjustments in respect of financial assets and of
investments held as current assets
3 -33.076.586.91 -65,679,615.45
Interest payable and similar expenses
derived  from  affiliated  undertakings -6,638,801.02 -16,979,066.77
other  interest  and  similar  expenses -2,069,245.77 -1,618,491.65
Tax on profit
-2,783,087.92 -4,134,647.39
Profit after taxation
3,126,355.71 -37,005,094.31
Other taxes not shown above
-467,500.00 -537,655.00
Profit for the financial year 2,658,855.71 -37,542,749.31
Allocation of profit
2023 2022
EUR EUR
Retained  earnings
96,529,714.40 93,870,858.69
From  the  balance:
10%  to  the  Board  of  Directors
0.00 0.00
90%  to  17,836,650  shares
0.00 0.00
96,529,714.40 93,870,858.69
Dividend per share
0.00 0.00
The  accompanying  notes  form  an  integral  part  of  the  financial  statements.
Company financial statements
130
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
3. Notes to the parent company financial statements for the 2023 financial year
Note 1. Overview
SOCFINAF  S.A.,  (the  “company’’)  was  incorporated  on
20November1972asa public   limited   company and
adopted  the  status  of  “Soparfi
G
”  on  10  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
andCompaniesundernumberB6225,andislistedon
the Luxembourg Stock Exchange under ISIN number
LU0056569402.
Theobjectofthecompanyis(i)theacquisition,holding
and disposal, in any form whatsoever and by any
means,directlyor  indirectly,  ofparticipations,rights
andinterests,aswellas bondsofLuxembourgish or
foreigncompanies,(ii)theacquisitionbycontribution,
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
similarbody),loansoranyothercreditline,aswell
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
patentsand  otherrightsrelating  toor  supplementing
those patents.
The company may borrow in any form whatsoever.
It  may  enterinto  any  kind  ofloan  agreement  and  may
issue debt securities, bonds, certificates, shares,
profitshares,warrantsandallkindsofdebtandequity
securities,includingbyvirtueofoneorseveralissue
programmes.  Thecompanymay  lendfunds,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
largestentityinwhichtheCompanyisconsolidated,
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)orontheInternetsite:www.socfin.com.
The financial year begins on 1 January and ends on
31  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
19December2002,determinedandimplementedby
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  inassumptions  may
haveasignificantimpactonthefinancialstatements
for  theperiod  inwhich  theassumptions  arechanged.
The Board of Directors believes that the underlying
assumptions are appropriate and that the financial
statementsgiveatrueandfairviewofthefinancial
position  and  results  of  the  Company.
Currency conversion
TheCompanykeepsitsaccountsineuros(EUR);the
annual  accounts  are  expressed  in  this  currency.
Transactions in a currency other than the balance
sheetcurrencyareconvertedintothebalancesheet
currencyattheexchangerateprevailingon  thedate
of the transaction.
Company financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
131
At  the  balance  sheet  date:
- the acquisition price of the financial assets,
expressedinacurrencyotherthanthecurrencyof
thebalance  sheet,remainconverted  atthehistorical
exchangerate,thecurrentportionofreceivablesis
oneexceptiontothis,asitisvaluedindividuallyat
thelowest  oftheir  historicalexchangerate  valueor
their  valuedetermined  onthe  basis  ofthe  exchange
rate  prevailing  at  the  balance  sheet  date;
- bankaccounts expressedina currencyother than
the  currencyofthe  balancesheet  arevalued  on  the
basisoftheexchangerateprevailingon  thebalance
sheetdate.Foreignexchangegainsand lossesare
recognised  in  the  current  period;
- all other assets, expressed in a currency other
thanthe  currencyof  thebalancesheet,  arevalued
individually at the lower of their value at the
historicalexchangerateortheirvaluedetermined
onthebasisofthe  exchangerateprevailingatthe
balance  sheet  date;
- all liability items, expressed in a currency other
thanthe  currencyof  thebalancesheet,  arevalued
individuallyatthehighestoftheirvalue.Forthis,
the highest amount is used between their value
at the historical exchange rate and their value
determined on the basis of the exchange rate
prevailing  on  the  balance  sheet  date.
Realised foreign exchange gains and losses and
unrealisedlosses  arerecognised  inthe  profitand  loss
account. Unrealised foreign exchange gains are not
recognised.
Ifthereisaneconomiclinkbetweentwo  transactions,
unrealised  exchangedifferences  arerecognised  atthe
corresponding  unrealised  exchange  loss.
Valuation of financial assets
Shares in affiliated undertakings are valued at
acquisitioncost,whichincludesincidentalexpenses.
Receivables from affiliated companies are valued
at their nominal value, which includes incidental
expenses.
Intheevent  ofanimpairmentthat,in  theopinionof
the BoardofDirectors,isofa lasting nature, these
financialfixedassetsaresubjecttovalueadjustments.
The  aim  of  the  latter  is  to  givethem  the  lowest  value
that should be attributed to them on the balance
sheet  date,  as  determined  by  the  Board  of  Directors.
In  ordertodetermine  thevalue  adjustmentsthat  are
permanent at the balance sheet date, the Board of
Directorscarriesoutthefollowinganalysesforeach
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
onthestockmarketpriceattheclosingdate.When
themarketvalueisgreaterthanorequaltothenet
bookvalue,theBoardofDirectorsconsidersthatno
value  adjustmentneeds  to  berecorded  at  the  closing
date.However,whenthemarketvalueislowerthan
thenetbookvalue,theBoardofDirectorsteststhe
netbookvalueagainsttheshareintherevaluednet
assets of the investment.
2/If  thenetbook  valueexceedsthe  marketvalueor
theequityvalueforunlistedinvestments,theBoard
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.
Ifeitherthe  marketortheequity  valueisgreaterthan
orequaltothenetbookvalueof  theinvestment,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
smallerdifferencebetween the netbookvalue of
theinvestmentandtheshareheldintherevalued
net  assets  or  in  the  consolidated  net  assets;
- for investments in plantations or industrial
companies, the Board of Directors makes a value
adjustment to adjust the carrying value to the
enterprise value,whichiscalculatedonthebasis
of  the  discounted  future  cash  flows  available  to  the
shareholders. These discounted future cash flows
takeintoaccounttheforeseeabledevelopmentof
the  business  of  the  investments  under  test.
Company financial statements
132
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
However, the Board of Directors may take other
factors  into  consideration.Particularly,  in  viewof  the
very  long  period  of  immaturity  of  young  plantation,it
considers  that  the  value  adjustment  is  not  permanent
foraplantationwheremorethanhalfoftheplanted
area  is  not  being  used.
Loansto affiliatedcompaniesaresubjectto avalue
adjustmentintheeventthatthenetbookvaluetest
bydiscounting  futurecashflows  toshareholdersdoes
not  support  the  full  repayment  of  the  receivable.
Thesevalueadjustmentsare  notmaintained  whenthe
reasonsforwhichtheywereestablishedhaveceased
to  exist.
Receivables
Receivables are recorded at their nominal value.
They are subject to value adjustments when their
recovery is compromised. These value adjustments
arenotcontinued if the reasonforwhich the value
adjustments  were  made  are  no  longer  applicable.
Securities
Securitiesarevaluedatthelowerofcost,including
incidentalcostsormarketvalue.  A valueadjustment
isrecordedwhenthemarketpriceislowerthanthe
purchaseprice.  Value  adjustmentsarenotmaintained
if the reasons for their negotiations have ceased to
exist.
Liabilities
Debts are recorded at their reimbursement value.
Whentheamounttoberepaidonthedebtsexceeds
the amount received, the difference is recorded to
the  profit  and  loss  account.
Geopolitical uncertainties
In February 2022, a number of countries (including
the  US,UK  andEU)  imposedsanctions  against  certain
entities and individuals in Russia as a result of the
officialrecognitionoftheDonetskPeopleRepublicand
Lugansk People Republic by the Russian Federation.
Announcementsofpotential  additionalsanctionswere
made  following  military  operations  initiated  by  Russia
against  Ukraine  on  24  February  2022.
On  7October  2023,Palestinian  militant  groupsled  by
Hamas launched a coordinated surprise offensive on
Israelresultinginmorethan1,200deaths,primarily
Israelicitizens.Followingthisattack,Israeldeclared
itself  in  a  stateof  war  for  the  firsttime  since  theYom
Kippur  War  in  1973.
Due  to  the  geopolitical  tensions,since  February  2022,
therehasbeenasignificantincreaseinvolatilityonthe
securities and currency markets. The conflicts have
hadasignificantimpactonthe  financialmarkets,with
many investors concerned about the risk of further
escalation  andtheensuing  impactonglobaltrade  and
economic  growth.
Although the aforementioned aspects have not
significantly impacted the company’soperations nor
performance and going concern during 2023, the
BoardofDirectorscontinuestomonitortheevolving
situation and its impact on the company’s financial
position  and  results.
Company financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
133
Note 3. Financial fixed assets
Shares in affiliated
undertakings
Loans to affiliated
undertakings Total
2023 2022 2023 2022 2023 2022
EUR EUR EUR EUR EUR EUR
Acquisition cost/nominal value at
the beginning 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
Increases
4,500,000.00 1,428,708.64 1,553,615.15 3,049,548.88 6,053,615.15 4,478,257.52
Decreases
0.00 -642,487.94 -17,854,496.02 -45,555,303.46 -17,854,496.02 -46,197,791.40
Acquisition cost/nominal value at
the end of the year
245,084,754.25 240,584,754.25 219,725,393.33 236,026,274.20 464,810,147.58 476,611,028.45
Value adjustments at the beginning
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
Impairment
-115.675.00 -17,868,989.74 -32,960,911.91 -48,250,913.65 -33,076,586.91 -66,119,903.39
Reversal
0.00 440,287.94 0.00 0.00 0.00 440,287.94
Value adjustments at the end
of the year
-57,820,149.70 -57,704,474.70 -90,191,426.84 -57,230,514.93 -148,011,576.54 -114,934,989.63
Net book value at the end
of the year
187,264,604.55 182,880,279.55 129,533,966.49 178,795,759.27 316,798,571.04 361,676,038.82
Company financial statements
134
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
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 as at
31/12/2023
(including net
income) (*)
Net income
in foreign
currency as at
31/12/2023
Plantations  Socfinaf  Ghana Ghana 100.00 32,503,775 31.12.2023 GHS 379,754,565 105,695,657
SocfinAgricultural  Company Sierra Leone 93.00 20,445,954 31.12.2023 USD 45,729,469 12,045,651
LiberianAgricultural  Company Liberia 100.00 13,793,904 31.12.2023 USD 42,913,181 -17,904,212
Salala  Rubber  Corporation Liberia 100.00 0 31.12.2023 USD -2,330,505 -2,856,146
Bereby-Finances  "BEFIN" Ivory Coast 87.06 13,604,405 31.12.2023 XAF 20,499,851,949 10,155,656,943
Socapalm Cameroon 67.46 40,640,840 31.12.2023 XAF 67,873,001,101 11,934,489,201
Okomu  Oil  Palm  Company Nigeria 66.38 22,151,171 31.12.2023 NGN 36,179,061,989 18,076,920,462
Brabanta Congo  (DRC) 100.00 0 31.12.2023 CDF 74,717,183,091
-12,076,986,217
Induservices Luxembourg 30.00 30,000 31.12.2023 EUR 486,125 158,489
Socfinde Luxembourg 20.00 801,000 31.12.2023 EUR 6,667,848 644,758
Terrasia Luxembourg 33.28 246,705 31.12.2023 EUR 644,145 29,142
SAFA France 100.00 26,535,600 31.12.2023 EUR 22,235,517 2,410,067
Induservices  FR Switzerland 50.00 642,202 31.12.2023 EUR 877,365 -218,056
Socfinco  FR Switzerland 50.00 486,891 31.12.2023 EUR 14,921,076 6,488,998
Sogescol  FR Switzerland 50.00 1,985,019 31.12.2023 USD 16,660,468 6,705,434
Sodimex  FR Switzerland 50.00 621,424 31.12.2023 EUR 4,313,232 609,180
Centrages Belgium 50.00 4,074,577 31.12.2023 EUR 3,295,563 117,522
Immobilière  de  la  Pépinière Belgium 50.00 3,015,798 31.12.2023 EUR 3,518,757 -136,790
Socfinco Belgium 50.00 763,875 31.12.2023 EUR 1,527,706 -9,367
STP Invest Belgium 100.00 0 31.12.2023 EUR 1,770,880 -2,812
182,343,140
(*) Based  on  unaudited  financial  statements  as  at  31  December  2023.
Valuation of shares in affiliated undertakings:
During  the  year,  the  company  has  participated  in  the  capital  increase  of  ManagementAssociates  for  an  amount  of  EUR  4,500,000.
Asat31December2023,theBoardofDirectorsdecidedtoreducetheacquisitionvalueofSocfincobyEUR115,675followingthe
update  of  the  portfolio  valuation.
Asat31December2023,theBoardofDirectorsisoftheopinionthatthereisnootherpermanentvaluedecreaseforthesharesin
affiliated  undertakings.
Company financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
135
Note 3. Financial fixed assets (continued)
Valuation of loans to affiliated undertakings:
As  at  31  December  2023,  loans  to  affiliated  undertakings  are  as  follows:
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
Salala  Rubber  Corporation USD 6,500,000 5,882,353 0
Brabanta USD 21,000,000 19,688,730 -684,205
SocfinAgricultural  Company USD 63,779,256 52,293,824 5,424,960
LiberianAgricultural  Company USD 36,404,647 32,309,252 636,130
Plantations  Socfinaf  Ghana USD 1,000,000 849,860 55,117
Agripalma EUR 18,099,947 18,099,947 0
Situation as at 31 December 2023 129,533,966 5,432,002
* In  accordancewith  Luxembourglegal  andregulatory  provisionsand  generallyaccepted  accountingpractices,  receivables
from  affiliatedundertakings  aretranslatedat  thehistorical  exchangerate  andthe  unrealisedforeignexchange  gainor  loss
is  notrecognised  in  theprofit  and  lossaccount,  with  theexception  ofthe  current  portionof  receivables,  whichis  valued
individuallyattheloweroftheir  historicalexchange  ratevalue  ortheir  valuedeterminedonthebasisoftheexchangerate
prevailing  at  the  balance  sheet  date.
Duringtheyear,  thecompany  hasreceived  areimbursement  ofEUR  16,139,993from  PlantationsSocfinafGhana,
EUR 7,313,274 from SocfinAgricultural Company and has paid an advance to Salala Rubber Corporation of
EUR  1,809,955.
Asat  31December  2023,theBoardofDirectors  decidedto  reducethevalueofthe  shareholderadvance  granted
to  Salala  Rubber  Corporation  by  EUR  32,960,912  in  order  to  bring  the  receivable  to  its  net  realisable  value.
As  at  31  December  2023,the  Board  of  Directors  are  of  theopinion  that  these  loans  are  recoverable  as  such,no
impairment  loss  has  been  accounted  for.
Company financial statements
136
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 4. Equity
Issued
capital
EUR
Share
premium
EUR
Legal
reserves
EUR
Other
reserves
EUR
Retained
earnings
EUR
Results for
the year
EUR
Balance as at 1 January 2022
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  May
2022
• Retained  earnings
6,499,115.32 -6,499,115.32
Results  for  the  financial  year -37,542,749.31
Balance as at 31 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
Allocation  of  the  result  for  the  2022
financial  year  following  decision  of
the  General  Meeting  held  on  30  May
2023
• Retained  earnings
-37,542,749.31 37,542,749.31
Results  for  the  financial  year
2,658,855.71
Balance as at 31 December 2023
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 93,870,858.69 2,658,855.71
Issued capital
As  at31December  2023and  2022,theissued  andfully  paidshare
capital is EUR 35,673,300 represented by 17,836,650 shares
without  nominal  value.
Share premium
As  at  31December  2023  and  2022,the  share  premiumamounted
to  EUR  87,453,866.
Legal reserve
Theannualprofit is subjecttoa levy of5%tobe allocated to
a legal reserve. This allocation ceases to be mandatory when
thereservereaches10%ofthesharecapital.Thelegalreserve
cannot  be  distributed.
Company financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
137
Note 5. Amounts owed to affiliated undertakings
As  at  31  December  2023,  this  item  consists  mainly  of:
- a debt to Socfin for a nominal amount of EUR
80,000,000  (2022:EUR  120,000,000),  whichbears  a
fixedinterestrateof6.25%. Theaccruedinterest
amounted EUR 1,250,000 (2022: EUR 510,000).
This debt is repayable early or at the latest on
10 November 2026. During the year,the company
has reimbursed an amount of EUR 40,000,000
to  Socfin.
- during the year, the company has reimbursed an
amount  of  EUR  13,615,803  to  Socfin
As at 31 December 2023 and 2022, the maturity of
debts  to  affiliated  undertakings  is  as  follows:
2023 2022
Amounts owed to affiliated undertakings: EUR EUR
becoming  due  and  payable  within  one  year 1,250,000 14,947,457
becoming  due  and  payable  between  one  to  five  years 80,000,000 120,000,000
81,250,000 134,947,457
Note 6. Amounts owed to undertakings with which the undertaking is linked by
virtue of participating interests:
As  at  31  December  2023,  this  item  consists  mainly  of:
- a payable to Bolloré Participations for a nominal
amount  ofEUR  20,000,000(2022:  EUR20,000,000),
plus  accrued  interest  in  the  amount  of  EUR  403,288
(2022: EUR 203,836). This debt bears interest at
afixedrateof6%perannumandisrepayableon
demand  with  final  maturity  on  30  June  2025.
- a payable to Palmboomen Cultuur Maatschappij
“MOPOLI”for  anominalamountofEUR20,000,000
(2022:EUR20,000,000),  plusaccruedinterestinthe
amountofEUR302,466(2022: EUR 201,644).This
debt  bearsinterest  ata  fixed  rateof  6%per  annum
andisrepayableondemandwithfinalmaturityon
15  July  2026.
Note 7. Income from participating interests
2023 2022
EUR EUR
Dividends  received
45,168,435 46,939,258
Capital  gain  on  disposal  of  financial  fixed  assets  (*)
5,013 18,750
45,173,448 46,958,008
(*) This  amount  corresponds  to  a  remaining  amount  from  prior  year  disposal.
Note 8. Income from other investments and loans forming part of the fixed
assets
2023 2022
EUR EUR
Interest  on  related  companies’  receivables
5,872,854 7,273,634
Company financial statements
138
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
Note 9. Taxation
The  Company  is  subject  to  all  taxes  to  which  Luxembourgish  commercial  companies  are  subject.
The management of the Company recognizes based on the last filed tax return that the Company has
EUR211,249,100ofcarriedforward  taxlossesavailableasat31December2022andestimatesapproximately
EUR  39,004,876  of  additional  tax  losses  for  the  current  period  (FY2023).
Regardingtheportionoftheaforementionedlossesthathavebeengeneratedasfromtaxyear2017(approximately
EUR32,835,876)thatamountcanbecarriedforwardfortheseventeenyearsfollowingthetaxyearinwhich
the  losses  arose.
Note 10. Remuneration of the Board of Directors
During2023,  themembersofthe  BoardofDirectorsreceived  EUR7,500(2022:EUR  9,062)asattendancefees
and  EUR  230,000  (2022:  EUR  230,000)  as  Directors’  fees.
During  2023,  no  advances  or  loans  were  granted  to  the  Board  members.
Note 11. Political and economic environment
Mostoftheinvestments are held directly orindirectlyincompaniesoperating inAfrica,particularlyinthe
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  insome  cases,  civilwars,  etc),the  investments  heldby  theCompany  present  arisk
in  terms  of  exposure  to  political  and  economic  fluctuations.
Note 12. Off-balance sheet commitments
As  at  31  December  2023  and  2022,  the  Company  had  no  significant  off-balance  sheet  commitments.
Note 13. Significant events after the year end
There  are  no  significant  post-closing  events  affecting  the  Company.
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
139
Glossary
CIF Rotterdam -Cost  Insurance&  Freight  Rotterdam,
corresponds  to:
-  Cost  of  the  good/oil;
-Insurance  cost  for  the  whole  consignment  rightfrom
port  of  loading  until  arrived  and  delivered;
-Freight  :  carryingcost  from  load  port  all  theway  up
to  Rotterdam.
In other words, the seller pays for the goods,
transportationtotheportofdestination,andMarine
insurance.
CONCESSION - Contract,signedwithlocalauthorities,
giving  specificrights  to  controlanarea  oflandand  for
theconductofspecificactivitiesinthatarea,during
a  defined  period.
CPO - CrudePalmOilisedibleoilwhichisextracted
from  the  pulp  of  fruit  of  oil  palm  trees.
CPKO - CrudePalm KernelOilisthe lightcrudeoil,
extracted from the Oil Palm kernels, containing
mainly  lauric  acid.
DAP – DeliveredAtPlaceisaninternationalcommercial
term(Incoterm),  meaningthattheseller  takesonall
therisksandcostsofdeliveringgoodstoanagreed-
upon  location.
DRY RUBBER - This is weight of natural rubber
produced,determinedattheend ofthemillingand
dryingprocess.  Aftertapping,liquidlatexisdripping
fromtherubber treesinthefield,mostlyharvested
after in-field coagulation. However, the “wet
rubber”stillcontains waterandmany othernatural
componentsapartfromtherubberparticles.Natural
rubberisMarketedas  “dryrubber”  –afterprocessing–
to  beused  in  numerousindustrial  value  chainsamong
which  manufacturing  of  tyres  is  the  most  important.
EBIT -Thisabbreviation  isdefinedas  earningsbefore
financial result and tax. It is the result of ordinary
business activities and is used to assess operational
profitability.
EBITDA - This abbreviation is defined as earnings
before financial result, tax, depreciation and
amortisation. This key figure is used to assess
operational  profitability.
ESEF - European Single Electronic Format is the
electronic reporting format in which issuers
whose securities are admitted to trading on EU
regulated  Markets  must  prepare  their  annual  financial
reports to facilitate accessibility, analysis and
comparability  of  annual  financial  reports.
EXW - Ex  worksisanIncoterm,  inwhichasellermakes
a  product  directlyavailable  from  thefactory  or  place
of  manufacture.  The  buyerof  the  product  must  cover
the transport costs.
FINISHED GOODS - Goods that have completed the
manufacturingprocessbuthavenotyetbeensoldor
distributedtotheenduser(forexampledryrubber,
crude palm oil, seeds, palm kernel oil, palm kernel
cake).
FOB -Free  On  Board  is  an  Incoterm,  which  means  the
sellerisresponsibleforloadingthepurchasedgoods
ontothe  ship,andall  costsassociated.  Thepointthe
goods are safe aboard the vessel, the risk transfers
to the buyer, who assumes the responsibility of the
remainder  of  the  transport.
FREE CASH FLOWS - The sum of cash flows arising
fromoperatingactivitiesandcashflowsarisingfrom
investing activities. Also referred to as cash flows
beforefinancing activities.Freecash flowsare used
to  assess  financial  performance.
GPSNR - Global Platform for Sustainable Natural
Rubber.GPSNRisan international,multistakeholder,
voluntary membership organisation, with a mission
to lead improvements in the socioeconomic and
environmental performance of the natural rubber
value  chain.
IAS - InternationalAccountingStandards.Accounting
standards issued by the International Accounting
Standards Board(IASB),thathavebeenreplacedby
IFRS  in  2001.
IFRS -International  Financial  Reporting  Standards  are
accountingrulesforpubliccompanies,withthegoal
of making company financial statements consistent,
transparent, and easily comparable around the
world.IFRSareissued by the IASB.IFRSincludeIAS
(older standards), the interpretations of the IFRS
InterpretationsCommitteeorof  thepredecessorIFRIC
as  well  as  the  former  SIC.
Glossary
140
|
ANNUAL REPORT 2023
|
Socfinaf S.A.
IRSG - International Rubber Study Group. It is an
inter-governmentalorganisation composedofrubber
producing and consuming stakeholders. Located in
Singapore,  IRSG  was  established  in  1944.
MARKET CAPITALISATION –Productofthenumberof
shares  multiplied  by  the  closing  Market  price.
NON-CONTROLLING INTEREST -Equityin  a  subsidiary
not  attributable,  directly  or  indirectly,  to  a  parent.
NET VALUE PER SHARE – Equity attributable to the
owners of the Parent at closing period, divided by
thenumberofshares.  Allowsreadersofthefinancial
statements to compare easily the share price at
closing period with its value within the financial
statements.  Asanexample,valueasat31December
2023isobtainedbydividing EUR363,885,495(value
of  Equity  attributable  to  the  owners  of  the  Parent)  by
17,836,650  (number  of  shares).
OPERATIONAL LIFE – Length of timeduringwhich a
tangible  orintangible  asset  canbe  used  economically
beforebreakdown.Operationallifedoesnotinclude
post-closure activities. As an example, rubber and
palmtreeshaveanestimatedoperationallifebetween
20  and  33  years.
OTHER COMPREHENSIVE INCOME - Items of income
and expense (including reclassification adjustments)
that  are  not  recognised  in  profit  or  loss  asrequired  or
permitted  by  other  IFRSs.
OWN PRODUCTION - Quantities of raw materials
(Fresh  Fruit  Bunches,  wetrubber,  …)  milledthat  have
been harvested on ownplantationsmanagedbythe
Group.
PRODUCTION-IN-PROGRESS - Inventorythathasbegun
themanufacturingprocessandisnolongerincludedin
rawmaterialsinventory,but is not yetacompleted
product. In the financial statements, production in
progress  is  classified  within  current  assets,  with  other
items of inventory.
RAW MATERIALS - Rawmaterialsaretheinputgoods
or inventory that a company needs to manufacture
its products (for example Fresh Fruit Bunches, wet
rubber,  …).
RIGHT OF USE ASSET - Asset that represents the
lessee’s right to use an underlying asset over the
duration  of  the  lease.
RSS3 - RibbedSmokedSheetisrubbercoagulatedfrom
highqualitynaturalrubber.Rubberisthenprocessed
intosheet,dried,smoked,andvisuallygraded.RSS3
rubber sheets are used in the production of tyres,
tread  carcass,  footwear,  …
SGX - Singapore Exchange is Singapore’s primary
asset exchange. The SGX lists stocks, bonds,
options contracts, foreign currency exchanges
and commodities, representing in 2021 the largest
stock  Market  exchange  in  South-EastAsia.
SEGMENTAL ASSETS / SEGMENTAL LIABILITIES -
Segmental assets and segmental liabilities are not
partofinternalreporting,theyareincludedtomeet
the  requirements  of  IFRS  8:
-Segmental assets include fixed assets, biological
assets,  tradereceivables,  inventories,cash  and  cash
equivalents.Theydo notinclude anyconsolidation
nor  IFRS  adjustments;
-  Segmental liabilities include only trade payables
and other payables. They do not include any
consolidation  nor  IFRS  adjustments.
SMOKED SHEET - Itisatypeofcrudenaturalrubber
intheformofbrownsheetsobtainedbycoagulating
latexwithanacid,rollingitinto sheets,anddrying
over open wood fires. It is the main raw material
fornaturalrubberproducts.Also called: ribbed and
smoked  sheet.
SOFR - TheSecuredOvernightFinancingRate(SOFR)
is a broad measure of the cost of borrowing cash
overnight collateralised by United States Treasury
securities
SOPARFI - SOciété de PARticipations FInancières.
SOPARFIs are fully taxable ordinary commercial
companies, whose corporate purpose consists in
the holding of participations and related financing
activities.
Glossary
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
141
SPPI - Solely Payments of Principal and Interest. It
is in the context of IFRS 9 one of the two required
conditionsforclassifyinganinstrumentatamortised
cost. It specifies that the contractual terms of the
lending agreement gives rise on specified dates of
contractual  cash  flows  that  are  either:
-  repayments  of  the  borrowed  principal  or,
-  interest  on  the  principal  amount  outstanding.
TAPPER - Agricultural  workertrainedand  qualifiedto
“tap”  atree  with  aspecial  knife.  Trees  aretapped  at
regular interval (4-7 days), releasing the latex from
the  latex  vesselssituated  in  thesoft  outer  barkof  the
tree.
THIRD PARTY PURCHASES - Businessdealthatinvolves
a person or entity other than a Group company.
Typically,third-partypurchasesaremadewithsmall
local  growers.
TRADING ACTIVITIES – Theactivityofselling,buying
or  exchanging  goods  and  servicesin  order  to  generate
profit.Thiscommercialactivityismainlycentralised
within  Sogescol  FR.
TSR20 - Technically Specified Rubber graded
correspondstoblockrubbermadebycrashing,cleaning
and drying solid rubber. Major producing countries
havetheirownTSRstandard(STRinThailand,SIRin
Indonesia,…).TSRaregradedaccordingtoavariety
of factors, including volatile matter, ash content,
color,  viscosity,  …
142
|
ANNUAL REPORT 2023
|
Socfinaf S.A.