Annual report 2001 ı SIPEF Consolidated accountsASSETS notes FIXED ASSETS I. FORMATION EXPENSES 1 II. INTANGIBLE ASSETS 2 III. CONSOLIDATION DIFFERENCES 3 IV. TANGIBLE ASSETS 4 A

Consolidated accounts

Annua l repor t 2001 ı SIPEF

35

ASSETSnotes

FIXED ASSETS

I. FORMATION EXPENSES 1

II. INTANGIBLE ASSETS 2

III. CONSOLIDATION DIFFERENCES 3

IV. TANGIBLE ASSETS 4

A. Land and buildings

B. Plant, machinery and equipment

C. Furniture and vehicles

D. Leasing and other similar rights

E. Other tangible assets

F. Assets under construction and advance payments

V. FINANCIAL ASSETS 5

A. Enterprises accounted for using the equity method

1. Participating interests

B. Other enterprises

1. Participating interests and shares

2. Amounts receivable

CURRENT ASSETS

VII. STOCKS AND CONTRACTS IN PROGRESS 6

A. Stocks

1. Raw materials and consumables

2. Work in progress

3. Finished goods

4. Goods purchased for resale

5. Immovable property acquired or constructed for resale

6. Advance payments

B. Contracts in progress

VIII. AMOUNTS RECEIVABLE WITHIN ONE YEAR 7

A. Trade debtors

B. Other amounts receivable

IX. INVESTMENTS 8

B. Other investments and deposits

X. CASH AT BANK AND IN HAND

XI. DEFERRED CHARGES AND ACCRUED INCOME

Balance sheet as at December 31, 2001

CONSOLIDATED ACCOUNTS

SIPEF ı Annua l repor t 2001

36

TOTAL ASSETS 127,697 125,709 114,163

1999K€

80,207

313

1,035

5,151

47,488

32,280

5,964

5,115

160

30

3,939

26,220

3,063

17,176

5,981

33,956

9,884

3,166

69

1,351

710

352

4,236

0

14,110

8,602

5,508

6,994

6,994

2,118

850

2001K€

87,107

8

690

5,411

68,813

41,485

9,069

4,357

0

5,656

8,246

12,185

4,001

3,476

4,708

40,590

11,046

3,570

55

3,537

200

836

2,848

0

14,642

6,687

7,955

10,570

10,570

2,127

2,205

2000K€

86,564

475

951

7,905

65,749

39,730

8,053

4,877

43

1,947

11,099

11,484

3,700

3,381

4,403

39,145

10,676

3,505

84

1,450

1,617

367

3,456

197

15,330

10,095

5,235

10,455

10,455

1,744

940

LIABILITIESnotes

OWN FUNDS

I. CAPITAL

A. Issued capital

473.994 ordinary shares

234.060 shares (ex.VVPR)

708.054 shares

II. SHARE PREMIUM ACCOUNT

IV. CONSOLIDATED RESERVES 9

V. CONSOLIDATION DIFFERENCES 3

VI. TRANSLATION DIFFERENCES 10

MINORITY INTERESTS 11

VIII. MINORITY INTERESTS

PROVISIONS, DEFERRED TAX AND LATENT TAXATION LIABILITIES 12

IX. A. PROVISIONS FOR LIABILITIES AND CHARGES

1. Pensions and similar obligations

4. Other liabilities and charges

B. DEFERRED TAX AND LATENT TAXATION LIABILITIES

CREDITORS

X. AMOUNTS PAYABLE AFTER ONE YEAR 13

A. Financial debts

3. Leasing and other similar obligations

4. Credit institutions

5. Other loans

B. Trade debts

1. Suppliers

D. Other amounts payable

XI. AMOUNTS PAYABLE WITHIN ONE YEAR 14

A. Current portion of amounts payable after one year

B. Financial debts


2. Other loans

C. Trade debts

1. Suppliers

2. Bills of exchange payable

D. Advances received on contracts in progress

E. Amounts payable regarding taxes, remuneration and social security

1. Taxes

2. Remuneration and social security

F. Other amounts payable and dividends

XII. ACCRUED CHARGES AND DEFERRED INCOME



37

2000K€

31,886

27,500

8,800

18,700

3,719

21,316

2,577

-23,226

9,696

9,696

7,621

5,122

951

4,171

2,499

76,506

24,871

46

20,769

4,056

0

0

50,113

5,121

31,757

25

3,951

337

415

558

618

7,331

1,522

1999K€

31,489

27,500

8,800

18,700

3,719

20,731

2,577

-23,038

10,038

10,038

12,371

10,812

878

9,934

1,559

60,265

13,873

11

13,332

530

0

0

43,976

6,661

20,032

36

4,964

416

356

2,619

744

8,148

2,416

2001K€

28,605

27,500

8,800

18,700

3,719

19,430

2,330

-24,374

7,481

7,481

7,776

5,859

1,186

4,673

1,917

83,835

25,473

14

22,101

882

2,273

203

56,906

13,436

32,360

26

4,325

681

196

384

706

4,792

1,456

TOTAL LIABILITIES 127,697 125,709 114,163

notes

I. OPERATING INCOME

A. Turnover 15

B. Variation in stocks of finished goods, work and

contracts in progress

C. Fixed assets - own construction

D. Other operating income

II. OPERATING CHARGES

A. Raw materials, consumables and goods for resale

1. Purchases

2. Variations in stocks

B. Services and other goods

C. Remuneration, social security costs and pensions

D. Depreciation of and other amounts writtten off formation

expenses, intangible and tangible fixed assets

E. Amounts written off stocks, contracts in

progress and trade debtors

F. Provisions for liabilities and charges

G. Other operating charges

III. OPERATING RESULT 16

IV. FINANCIAL INCOME

A. Income from financial fixed assets

Dividends

B. Income from current assets

C. Other financial income

V. FINANCIAL CHARGES

A. Interest and other debt charges

B. Amounts written off positive consolidation differences

C. Amounts written off current assets

D. Other financial charges

FINANCIAL RESULT 17

VI. RESULT ON ORDINARY ACTIVITIES BEFORE

TAXATION 17a



38

Income statement as at December 31, 2001

2000K€

107,840

104,578

-32

1,091

2,203

96,800

58,243

1,204

14,620

16,481

5,488

-216

569

411

11,040

7,995

0

871

7,124

13,731

3,564

2,494

0

7,673

-5,736

5,304

1999K€

118,917

116,452

-488

1,233

1,720

96,660

59,610

596

12,916

14,515

4,434

1,204

3,176

209

22,257

10,304

382

1,109

8,813

13,483

2,314

1,984

621

8,564

-3,179

19,078

2001K€

97,431

91,619

2,171

934

2,707

92,856

57,322

52

12,068

16,074

6,253

-117

838

366

4,575

10,058

0

1,162

8,896

16,998

4,641

2,494

-40

9,903

-6,940

-2,365

notes

VI. RESULT ON ORDINARY ACTIVITIES BEFORE

TAXATION 17a

VII. EXTRAORDINARY INCOME

C. Adjustments to amounts written off financial

fixed assets

D. Adjustments to provisions for extraordinary

liabilities and charges

E. Gain on disposal of fixed assets

F. Other extraordinaty income

VIII. EXTRAORDINARY CHARGES

A. Extraordinary depreciation of and amounts written off

formation expenses, intangible and tangible fixed assets

B. Extraordinary amounts written off positive

consolidation differences

C. Amounts written off financial fixed assets

D. Provisions for extraordinary liabilities and charges

E. Loss on disposal of fixed assets

F. Other extraordinary charges

EXTRAORDINARY RESULTS 18

IX. RESULT FOR THE FINANCIAL PERIOD BEFORE TAXATION

X. A. TRANSFER FROM DEFERRED TAX AND LATENT

TAXATION LIABILITIES

B. TRANSFER TO DEFERRED TAX AND LATENT

TAXATION LIABILITIES

XI. INCOME TAXES 19

A. Income taxes

B. Adjustment of income taxes and

write-back of tax provisions

XII. RESULT FOR THE FINANCIAL PERIOD

XIII. SHARE IN THE RESULT OF THE ENTERPRISES ACCOUNTED

FOR USING THE EQUITY METHOD

A. Profits

B. Losses

XIV. CONSOLIDATED RESULT 20

A. Share of third parties in the result

B. Share of the group in the result



39

2000K€

5,304

4,276

0

1,588

2,163

525

2,872

88

1,339

347

-2,514

190

3,422

1,404

6,708

0

0

-5,200

-5,444

244

1,508

315

505

-190

1,823

443

1,380

1999K€

19,078

1,619

120

0

1,128

371

1,705

41

0

268

480

106

810

-86

18,992

0

0

-8,157

-8,157

0

10,835

-11

434

-445

10,824

3,268

7,556

2001K€

-2,365

2,986

0

357

2,406

223

1,377

990

0

0

198

43

146

1,609

-756

554

-112

-2,626

-2,579

-47

-2,940

303

370

-67

-2,637

-751

-1,886

notes

CASH FLOW FROM OPERATIONS

Net consolidated profit, share of the group

Net consolidated profit, third parties interest

Share of result of the associated companies

Depreciation

Loss on disposal of fixed assets

Gain on disposal of fixed assets

Increase provisions

Other non cash result (1)

Change in net working capital

NET CASH FLOW FROM OPERATIONS

NET INVESTMENTS

Acquisitions of intangible fixed assets

Acquisitions of tangible fixed assets (2)

Acquisitions of financial fixed assets - shares

Decrease/(increase) in financial fixed assets - loans

Proceeds from sales of tangible fixed assets

Proceeds from sales of financial fixed assets

CASH FLOW FROM NET INVESTMENTS

CASH FLOW FROM OPERATIONS AFTER INVESTMENTS

NET FINANCING

Increase/(decrease) in long term borrowings (3)

Increase/(decrease) in current borrowings (3)

Last year's dividend paid during this bookyear

Dividends paid by subsidiaries to third parties

CASH FLOW FROM NET FINANCING

CHANGE IN NET CASH AND CASH EQUIVALENTS

Cash at beginning of the period

Cash at end of the period

Cash flow statement



40

Comments on the most important movements:

(1) The other non-cash movements mainly concern the capital gains made from the sale by S.A. SIPEF N.V. of shares in P.T. AGRO MUKO to P.T. TOLAN TIGA (K€ 755). In addition, the badwill in AGRICOLUX S.A. was written off on liquidation of this company (K€ 247).

(2) The investments in HARGY OIL PALMS PTY LTD, PHU BEN TEA J.V. CY and P.T. AGRO MUKO (together representing K€ 7,474 or 57% of the investments) can be considered as expansion investments. The other investments were the usual replacement investments..

(3) The net rise of K€ 7,046 in short and long-term financial debts is mainly due to the further expansion of our palm oil activities in Papua New Guinea during this period of low prices.

2000K€

1,379

443

-637

9,539

190

-2,164

-3,525

-78

-6,908

-1,761

-340

-13,576

249

-451

1,274

2,237

-10,607

-12,368

9,860

8,024

-1,731

-697

15,456

3,088

9,111

12,199

1999K€

7,556

3,268

107

8,433

106

-835

4,563

-530

914

23,582

-494

-9,352

-18,006

9,821

478

552

-17,001

6,581

-9,577

1,670

-1,580

-1,371

-10,858

-4,277

13,388

9,111

2001K€

-1,885

-751

-301

9,579

43

-1,405

155

-982

787

5,240

-26

-13,128

-352

-305

1,898

491

-11,422

-6,182

-1,874

8,920

0

-366

6,680

498

12,199

12,697

The consolidated balance sheet and income statement have numbers in a separate column referring to notes with more detailed

comments, together with the notes annexed in accordance with the law on consolidated accounts. The chronological order of the notes

has been modified so as to make them easier to read in relation to the balance sheet and income statement; however the required

numbering has been maintained throughout.

All the amounts mentioned in the notes annexed are in thousand euros, unless stated otherwise.

I. CONSOLIDATION CRITERIA AND CHANGES IN THE CONSOLIDATION SCOPE

Consolidation criteria

Full consolidation is used for subsidiaries in which the consolidating company exercises control de jure or de facto.

Proportional consolidation is used for subsidiaries managed jointly by a limited number of shareholders.

The equity method is applied to associated companies in which a significant influence is exercised over the operational policies, and

in which the shareholding calculated on the basis of the power of control is between 20% and 50%.

If one of these criteria has not been applied, an explanation is given further on in the notes.

Consolidation scope

The consolidation scope was not expanded in 2001. It was decided that the Brazilian company SENOR LTD, in which we have a

shareholding of 97.3%, should not be included in the consolidation, as the reporting is still not considered sufficiently reliable. As

regards the two other subsidiaries that are still not consolidated, namely INCASUCA C.A. and BONAL S.A., negotiations are currently

being carried out with a view to selling off both these companies.

The last tranche of the capital in AGRICOLUX S.A. was repaid to the shareholders during the first half of 2001, and so this company

disappears from the consolidation scope in 2001.

Consolidation method

Our insurance branch – BDM N.V. and ASCO N.V. – is consolidated by the equity method, despite the fact that we have a percentage

control of 50%, as proportionate consolidation would not give a true view of the group's financial position.

Notes annexed to the consolidated accounts of the SIPEF group



41

II. LIST OF THE CONSOLIDATED ENTERPRISES AND ENTERPRISES INCLUDED USING THE EQUITY METHOD

Name Office Country % of interest

Consolidating enterprise

S.A. SIPEF N.V. Antwerpen Belgium 100.0

Subsidiaries

A. Full consolidation

South East Asia Holdings N.V. Antwerpen Belgium 49.4

Franklin Falls Timber Cy. Inc. Delaware U.S.A. 100.0

Agricolux S.A. Luxembourg Luxemburg 91.7

Jabelmalux S.A. Luxembourg Luxemburg 61.2

Sagral S.A. Luxembourg Luxemburg 70.0

P.T. Tolan Tiga Medan Indonesia 90.0

P.T. Eastern Sumatra Medan Indonesia 90.0

P.T. Timbang Deli Medan Indonesia 90.0

P.T. Bandar Sumatra Medan Indonesia 90.0

P.T. Tanah Abang Medan Indonesia 90.0

P.T. Kerasaan Medan Indonesia 54.0

P.T. Melania Jakarta Indonesia 55.1

P.T. Alicia Jakarta Indonesia 55.1

P.T. Moesi Jakarta Indonesia 55.1

Sipef-CI S.A. San Pedro Ivory Coast 70.0

Galley Reach Holdings PTY Ltd. Port Moresby Papua N.G. 100.0

Sipef Pacific Timber PTY Ltd Port Moresby Papua N.G. 75.0

B. Proportional consolidation

P.T. Agro Muko Jakarta Indonesia 37.1

Hargy Oil Palms Pty. Ltd. Bialla Papua N.G. 50.0

Phu Ben Tea J.V. Cy. Hanoi Vietnam 29.7

C. Equity method

B.D.M. N.V. Antwerpen Belgium 50.0

ASCO N.V. Antwerpen Belgium 50.0

Plantations J. EGLIN & CIE S.A. Azaguié Ivory Coast 24.4



42

III. LIST OF SUBSIDIARIES EXCLUSIVELY OR JOINTLY CONTROLLED NOT INCLUDED

Name Office Country % of interest

A. Subsidiary of minor importance (art. 107, 1° of the RD of 30 January 2001)

Horikiki Development Cy. Ltd. Honiara Solomon Islands 90.8

Agridus N.V. (in liquidation) Antwerpen Belgium 86.3

Terminal Huilier San Pedro San Pedro Ivory Coast 28.0

Sipef Guinée S.A. Conackry Guinea 80.0

B. Unavailability of information (art. 107. 3° of the RD of 30 January 2001)

Asco Life N.V. Antwerpen Belgium 25.0

Bruns ten Brink B.V. Wormer Netherland 50.0

Seringueiras do Nordeste Ltd Maranhao Brazil 97.3

C. Exclusively held with a view of subsequent resale (art. 107, 4° of the RD of 30 January 2001)

Cie. du Kasai et de l'Eq. SCARL Bandundu Congo 81.2

Cavalla Rubber Corporation Monrovia Liberia 80.0

Incasuca C.A. Caracas Venezuela 98.4

Bonal Borracha Natural S.A. Acre Brazil 71.2

Plantations de Lemera SCARL Bukavu Congo 35.0

Sograkin SPRL Kinshasa Congo 50.0

IV. ACCOUNTING POLICIES

A. CRITERIA FOR VALUATION OF THE VARIOUS ITEMS OF THE CONSOLIDATED ANNUAL ACCOUNTS

1. General principle

The accounting policies of the consolidated subsidiaries are similar to those of the consolidating company, S.A. SIPEF N.V.,

and are drawn up in the same principles of prudence.

The valuation rules are in compliance with the various Royal Decrees and Laws that pertain to the preparation of company

annual accounts.

2. Special rules

A. Balance sheet items

Formation expenses

Formation expenses are recorded at their acquisition value. Annual depreciation rates with regard to capitalised formation

expenses, capital increase expenses, and other restructuring expenses are not lower than 20%. Expenses incurred on the

issuance of a loan are spread over the lifetime of the loan.

Intangible assets

The intangible assets, which include among other things, goodwill, research and development expenses, licences etc., are

recorded at their acquisition value or cost price as long as this is neither higher than the present utility value nor the future

return. Depreciation is applied on a straight-line basis at the rate of 20% per annum. If the economic or technological

circumstances require it, this rate may be increased or reduced. Expenses relating to concessions are depreciated over the life

of the concession.



43

Consolidation differences

The consolidation differences arise on the first inclusion in the consolidation scope and on acquisition of new shareholdings

in consolidated companies.

The positive consolidation differences are depreciated over a period of five years. Further depreciation is entered whenever the

remaining difference is no longer justified or it is not significant. Negative consolidation differences are maintained in the

consolidated balance sheet as long as the company concerned is included in the consolidation scope.

The consolidation differences are not posted to the corresponding items of the balance sheet.

Tangible assets

The tangible assets are recorded at their acquisition value, being either the purchase price or the value at which they were

brought into the books. If the present value differs from the historic value on a permanent and certain basis, a revaluation may

be undertaken and the difference in value is recorded under the “Revaluation reserves”, remaining as such until disposal of

the asset or reversal.

If the economic or technological circumstances change fundamentally, the depreciation rate may be increased or reduced.

Financial assets

The financial assets are booked at their acquisition value. Expenses related to the acquisition are included in this item. They

could be subject to revaluation if the real value of these assets differs from the value in the books on a permanent and certain

basis, taking into consideration the interest of the company. The resulting difference in surplus value is recorded under

“Revaluation surpluses”, remaining there until disposal of the asset or reversal.

Financial assets – shares and loans – in foreign currencies are non-monetary items and consequently are not affected by later

exchange variances of their nominated currency.

Value adjustments are booked in the case of under-valuation or permanent depreciation based on the situation, return on

investment or prospects of the companies. The stock exchange quotation could ultimately be a valuation factor. These

adjustments are reviewed annually. The interests in enterprises accounted for using the equity method are the parent

companies’ share of the enterprise’s shareholder’s equity.

Amounts receivable after one year and amounts receivable within one year

These items are booked at their nominal value. Value adjustments are applied in case of permanent under-valuation or

devaluation such as receivables from third parties in countries with political or monetary risks, devalued currencies, or when

a debtor has become bankrupt or in case of doubt about payment at deadline.

Stocks and work / contracts in progress

Raw materials, goods and buildings intended for sale are valued at the lower of acquisition value (purchase price and additional

costs) or marketable value at the end of the financial year.

Works and contracts in progress are valued at their cost price. Value adjustments are done if their cost price plus the estimated

expenses to be made, exceeds the net sales price, or if their value in the books exceeds the sales price or the marketable value.

The above mentioned acquisition value can be described as being the individual cost of each element.



44



45

Investments and cash

The amounts invested with financial institutions are valued at their nominal value.

Shares are valued at acquisition value. Value adjustments are booked if the realisation value at the date of the balance sheet

is lower than the acquisition value.

Provisions for liabilities and charges

At the end of each financial year, the Board of Directors examine carefully, sincerely and in good faith, the amount of provisions

to be made to cover all foreseeable Charges and Liabilities, including the country risks, covered by a general provision.

Provisions relating to previous financial years are revised regularly and taken into the results if they have become unnecessary.

Future taxation and deferred taxes

The consolidated balance sheet and income statement include the difference, arising on consolidation, between (a) the taxes

for the current and previous financial years and (b) the taxes paid or still to be paid for these years, to the extent that the

consolidating company or a consolidated company will actually incur costs as a result within the foreseeable future.

Amounts payable after one year and amounts payable within one year

These items are recorded at nominal value.

B. Rights and Commitments not accrued in the balance sheet

The rights and commitments not accrued in the balance sheet are mentioned by category in the notes, at nominal value of the

commitments of the contracts or, by default, at estimated value.

C. General principles of the evaluation of assets and liabilities expressed in foreign currencies

Conversion of assets and liabilities expressed in foreign currencies

Assets and liabilities expressed in foreign currencies are converted into € at the average monthly rate of their booking.

On the closing date of the balance sheet:

– non-monetary items of the balance sheet, such as formation expenses, intangible and tangible fixed assets, financial fixed

assets and stocks (on the assets side) and the items under own funds (on the liabilities side), are maintained at their

acquisition value expressed in €, whatever the value at balance sheet date of the currency in which the acquisition price was

paid.

– monetary items of the balance sheet, such as amounts receivable after more than a year or within one year, cash

investments, cash at bank and cash in hand, deferrals and accruals (on the assets side), provision items for liabilities and

charges, amounts payable after more than a year or within one year, and deferrals and accruals (on the liabilities side) are

evaluated at the exchange rates retained for the foreign currencies at the date of the balance sheet.

The exchange variances resulting from these evaluations are accumulated per currency. The bookkeeping of these exchange

variances is done using the method of integral accounting of the variances whereby the positive as well as the negative

variances are recorded as results.

The variances per currency are booked under other financial charges or income.

Conversion of accounts from consolidated companies expressed in foreign currency

Balance sheet items of foreign subsidiaries and associated enterprises are consolidated at the exchange rate prevailing at the

close of the financial year. This applies equally for both monetary and non-monetary items be they assets, liabilities, rights or

commitments. On the other hand, income and expenses appearing in the revenue accounts are consolidated at the average

exchange rate of the year. All the exchange variances resulting from these conversions are recorded under the “translation

differences” in the balance sheet.

In view of the current economic situation in Indonesia, characterised by sharply reduced economic activity, illiquidity, highly-

volatile foreign currency exchange and interest rates, and unstable stock markets, the Board of Directors of Sipef decided in

1998 to abandon the current rate method, for companies located in Indonesia whose financial statements are expressed in IDR.

Due to the significant and erratic fluctuations in the exchange rate, the reliability of the Group’s accounts would be

undermined. For the duration of the economic crisis in Indonesia the translation method for these companies has been

changed as follows: the assets and liabilities, income and expenditure of the Indonesian companies are translated using the

monetary/non-monetary method, extended to include the translation at historic rates of the long term loans obtained to

finance the Group’s fixed assets.

The Board believes this way of working is in compliance with the prescriptions of Art. 131 and 132 of the Royal Decree of 30

January 2001 on consolidated financial statements and likewise in compliance with Art. 115 of the Royal Decree, which states

that the consolidated financial statements must give a true and fair view of the equity, financial position and result of operations

of the Group.

The practical implications are that the historical exchange rate, hereby defined as the closing rate applicable at 31 December

1997, has been used for assets existing at December 31, 1997 and the average exchange rate of the year for other assets. The

closing rate as at December 31, 2001 is used to translate the monetary items of the balance sheet, being the current assets and

liabilities.

The Board of Directors intends to return to the closing rate method once the Indonesian inflation rate and currency have

stabilised.

The impact to the consolidated accounts as at December 31, 2001 can be summarised as follows: the negative exchange

differences are K€ 620 lower and the consolidated net result is K€ 654 lower than obtained using the closing rate method.

D. Method chosen to eliminate dealings within the group

Accounts payable or receivable between the consolidating company and companies included in the consolidation, or between

the latter, are eliminated from the consolidation, as are costs or proceeds from transactions between them.

Capital gains or losses made within the group are eliminated in proportion to the percentage stake (direct or indirect) held by

the consolidating company in each of the subsidiaries concerned.

B. FUTURE TAXATION AND DEFERRED TAXES

Analysis of heading IX B. of the liabilities

Deferred taxes ( art.129 of the R.D. of 30 January 2001)For comments see the note concerning provisions.



46

Amounts

1,917



47

V. NOTES

note 1. FORMATION EXPENSES

VII. Statement of formation expenses

Net carrying value as at the end of the preceding period

Movements during the period:

- Depreciation

- Other

Net carrying value at the end of the period

of which: expenses of formation or capital increase, loan issue

expenses, reimbursement premium and other formation costs

The main movement during the financial year was the reclassification of the capitalised costs in SIPEF-CI S.A., which are now classed

as tangible fixed assets.

note 2. INTANGIBLE ASSETS

The heading "Concessions, licenses etc.” concerns operating rights in Indonesia and Ivory Coast. The goodwill relating to valuation

of SIPEF-CI S.A. when it was privatised in 1996 was fully depreciated in 2001.

VIII. Statement of intangible assets

a) Acquisition cost

As at the end of the preceding period


- Acquisitions, including fixed assets, own production

At the end of the period

c) Depreciation and amounts written down

As at the end of the previous period


- Recorded


d) Net carrying value at the end of the period (a) - (c)

Amounts

475

-21

-446

8

8

Total

1,260

26

1.286

309

286

595

691

Goodwill

206

-

206

-

206

206

0

Concessions,

patents,

licences, etc.

952

25

977

222

65

287

690

Research and

development

expenses

102

1

103

87

15

102

1



48

note 3. CONSOLIDATION DIFFERENCES

XII. Statement of consolidation differences and differences resulting from the

application of the equity method

A. Positive consolidation differences

Net carrying value at the end of the preceding period


- Write-downs


B. Negative consolidation differences


- Write-downs


Since the consolidation scope has not altered, no further consolidation differences were booked during the financial year, and the

only movements are for depreciation. The positive consolidation differences (in K€) arise in:

SOUTH EAST ASIA HOLDINGS N.V.

HARGY OIL PALMS PTY LTD

P.T. TOLAN TIGA GROUP

PLANTATIONS J. EGLIN & CIE. S.A.

GALLEY REACH HOLDINGS PTY LTD

PHU BEN TEA J.V. CY LTD

Total

The negative consolidation differences arise from the first consolidation of FRANKLIN FALLS TIMBER CY (K€ 880), SIPEF-CI S.A.

(K€ 1,002), P.T. BANDAR SUMATRA and P.T. TIMBANG DELI (together amounting to K€ 448). Following the liquidation of

AGRICOLUX S.A., the negative consolidation difference for this company (K€ 247) has been written off.

Total

7,905

-2,494

5,411

2,577

-247

2,330

2000

116

785

1,282

1,524

3,555

643

7,905

Differences

resulting from the

application of the

equity method

1,524

-508

1,016

-

-

0

2001

-

392

855

1,016

2,666

482

5,411

Consolidation

differences

6,381

-1,986

4,395

2,577

-247

2,330



49

note 4. TANGIBLE FIXED ASSETS

IX. Statement of tangible fixed assets

a) Acquisition cost



- Acquisitions, including fixed assets, own construction

- Sales and disposals

- Transfers from one heading to another

- Translation differences


c) Depreciation and amounts written down



- Recorded

- Written down after sales and disposals

- Transfers from one heading to another



d) Net carrying value at the end of the period (a) -(c)

Investments by the group during the year totalled K€ 13,128, an amount comparable with the previous year. Apart from the usual

replacement investments, we completed the second oil mill at P.T. AGRO MUKO and continued the expansion of HARGY OIL PALMS

PTY LTD. The second palm oil mill at HARGY OIL PALMS PTY LTD will be operational by the middle of 2002. In Vietnam, we acquired

a third tea factory together with three plantations situated around it.

The fixed assets under construction are mainly the expansions to the new planted areas for HARGY OIL PALMS PTY LTD, which will

not be included in the other headings of the tangible fixed assets until they actually enter production.

Assets under

construction

and advance

payments

11,648

4,455

-77

-5,986

-1,245

8,795

549

-

-

-

-

549

8,246

Other

tangible

assets

2,901

1,244

-670

4,091

-280

7,286

954

392

-188

504

-32

1,630

5,656

Leasing

and other

similar

rights

86

-

-3

-76

-7

0

43

-

-4

-36

-3

0

0

Furniture

and

vehicles

12,569

1,040

-274

207

-451

13,091

7,692

2,062

-257

-463

-300

8,734

4,357

Plant,

machinery

and

equipment

17,787

1,674

-481

1,302

-596

19,686

9,734

1,601

-329

-

-388

10,618

9,068

Land and

Buildings

50,862

4,715

-617

1,410

-955

55,415

11,132

2,940

-317

500

-325

13,930

41,485

note 5. FINANCIAL FIXED ASSETS

The participating interests and accounts receivable mentioned under this heading relate to companies which, for a variety of

reasons explained in the notes annexed, are not included in the consolidation scope, together with participating interests involving

a percentage of 20% or less.

X. Statement of financial fixed assets

1. PARTICIPATING INTERESTS

a) Acquisition cost



- Acquisitions

- Sales and disposals


c) Amounts written down



- Written down after sales and disposals


e) Movements in the capital and reserves of the enterprises

accounted for using the equity method

- Share in the result for the financial period

- Elimination of dividends regarding those participating interests

Net carrying value at the end of the period (a) - (c) - (e)

Enterprises accounted for using the equity method

The increase during the financial year reflects the positive contribution made by these companies to the results of the group.

Other enterprises

The investment during the year represents an 80% stake in a new project for marketing mangoes in Guinea.

The disposals (acquisition value and write-downs) represent the sale of three of our plantations in Kivu-Congo (PLANTATIONS DE

M’BAYO SCARL, PLANTATIONS D’IRABATA SCARL and CONGO THÉ MANAGEMENT SCARL). A capital gain of K€ 432 was made

from this sale.

2. AMOUNTS RECEIVABLE



- Additions

- Reimbursements


Accumulated amounts written down at the end of the period

The financial fixed assets and amounts receivable mainly concern the long-term support provided to our subsidiaries in Brazil,

along with 50% of the intra-group loan to HARGY OIL PALMS PTY LTD after the proportionate consolidation.



50

Other

enterprises

13,206

96

-1,082

12,220

9,825

-1,081

8,744

-

-

-

3,476

Other

enterprises

4,403

471

-166

4,708

14,295

Enterprises

accounted

for using

the equity method

3,700

-

-

3,700

-

-

0

301

303

-2

4,001

note 6. STOCKS

Stocks remained at a stable level overall. However, this stability masks certain large movements.

The increase in stocks of finished goods (K€ 2,087) is mainly due to the stock of tea in PHU BEN TEA J.V. CY, which rose by

K€ 1,460 (group's share 60%). The situation arose because our main market, namely Pakistan, was completely closed to us during

the last quarter of 2001 due to the difficult international situation.

Sales of the remaining stock of tea and cinchona bark held by S.A. SIPEF N.V. led to a decrease in goods purchased for resale (down

K€ 1,417).

The lower amount of prepayments (down K€ 608) is a direct result of winding down the temporary financial support given by S.A.

SIPEF N.V. to HARGY OIL PALMS PTY LTD (50% proportionately consolidated), since this subsidiary has been able to call on

external financing.

note 7. AMOUNTS RECEIVABLE WITHIN ONE YEAR

The decrease in trade accounts receivable mainly relates to S.A. SIPEF N.V., although this is a temporary situation.

The increase in the other amounts receivable is largely due to the operating costs of PHU BEN TEA J.V. CY being financed by

SOUTH EAST ASIA HOLDINGS N.V. These advances could not be repaid, because of the poor sales during the second half of

the year.

note 8. INVESTMENTS

The cash investments are mainly deposit accounts in USD held by S.A. SIPEF N.V. to offset the USD debts of the Indonesian

subsidiaries, together with the USD deposit account held by SOUTH EAST ASIA HOLDINGS N.V. to guarantee the debts incurred

by PHU BEN TEA J.V. CY in Vietnam.

note 9. CONSOLIDATED RESERVES

XI. Statement of consolidated reserves

Consolidated reserves at the end of the previous financial period

Movements:

- Share of the group in the consolidated income

Consolidated reserves at the end of the period

note 10. TRANSLATION DIFFERENCES

The main negative translation differences arise from the Indonesian subsidiaries (K€ -20,124), our subsidiaries in Papua New

Guinea (K€ -2,949) and FRANKLIN FALLS TIMBER CY (K€ -1,865).

Due to the application of the historical rates method for our Indonesian subsidiaries since 1998, the movements in respect of these

companies are negligible.

In the past, considerable exchange rate losses had to be charged against the consolidated result, for loans in USD granted by S.A.

SIPEF N.V. to the subsidiaries HARGY OIL PALMS PTY LTD and SIPEF PACIFIC TIMBERS PTY LTD. Since a considerable proportion

of these loans can be considered as equivalent to capital (interest-free, with no fixed repayments and also no foreseeable

repayments), the translation differences on this part of the debts have been posted directly to translation differences.



51

Amounts

21,316

-1,886

19,430

note 11. MINORITY INTERESTS

XI. bis. Statement of minority interests

At the end of the preceding period



- Dividends 2001: share of third parties

- Capital reimbursement AGRICOLUX S.A.

- Acquisition shares in P.T. AGRO MUKO by minority shareholders P.T. TOLAN TIGA

- Result 2001


The decrease in the share of third parties, together with the latter’s share in the result (K€ -751), is mainly due to the shares in P.T.

AGRO MUKO being acquired by the minority shareholders (10%) in P.T. TOLAN TIGA (K€ -1,057).

In addition, the third parties' share in the equity of the consolidated companies diminished as a result of a dividend payout by P.T.

KERASAAN (K€ -366) and the liquidation of AGRICOLUX S.A. (K€ -43).

note 12. PROVISIONS, DEFERRED TAX AND LATENT TAXATION LIABILITIES

The provision of K€ 5,859 for risks and charges includes a provision of K€ 1,186 to cover the future pension obligations of HARGY

OIL PALMS PTY LTD and SIPEF-CI S.A., together with a provision of K€ 4,673 for other risks and charges. The latter includes

provision of K€ 2,255 to cover "country" risks (i.e. political risks over and above the normal operating risks) in countries where

S.A. SIPEF N.V. has interests, excluding Europe and North America.

The Board of Directors has drawn up a list of criteria for evaluating these country risks. A specific cover percentage has been set for

each criterion and applied to the long-term amounts receivable in each country. The decrease in this provision by an amount of

K€ 266 during the financial year is due to the write-down of the companies in Papua New Guinea, which has resulted in a lower

outstanding risk.

This risks and costs item also includes a provision of K€ 2,311 for losses in the non-consolidated subsidiaries. The provision made

will be used at the moment when the loss is actually incurred (by carrying out the capital increase in cash, contribution of amounts

receivable, etc.).

The provision of K€ 1,917 for deferred payments and latent tax liabilities comprises latent tax liabilities caused by timing differences

for depreciation of fixed assets (Indonesian subsidiaries, HARGY OIL PALMS PTY LTD and FRANKLIN FALLS TIMBER CY, together

amounting to K€ 1,596), and on unrealised exchange rate differences in SOUTH EAST ASIA HOLDINGS N.V. (K€ 321).



52

Amounts

9,696

2

-366

-43

-1,057

-751

7,481

note 13. AMOUNTS PAYABLE AFTER ONE YEAR

The decrease in financial debts payable after one year in S.A. SIPEF N.V. and SIPEF-CI S.A. (together amounting to K€ 11,311) is

more than offset by an increase in HARGY OIL PALMS PTY LTD (K€ 6,250) and in our Indonesian subsidiaries (K€ 5,913). The

various movements reflect our policy of optimising our debt position. The new loans in HARGY OIL PALMS PTY LTD represent

loans in EUR obtained from the investment banks SBI (Belgium) and DEG (Germany), and are repayable from 2005 to 2008. The

new loans in our Indonesian subsidiaries are USD loans obtained from a local bank, repayable from 2002 to 2005. This

rearrangement of debt should give the group the flexibility to bring the investments over the past years up to full yield and reducing

the long-term debt position.

The decrease in other loans payable after one year mainly represents a roll-over towards financial debts payable after one year within

HARGY OIL PALMS PTY LTD (K€ 3,000).

The trade debts payable after one year represent an extension of payment until 2003, obtained by HARGY OIL PALMS PTY LTD for

building a new palm oil mill.

XIII. Statement of amounts payable

A. Analysis of the amounts originally payable

after one year according to their residual term

Financial debts

3. Leasing and other similar obligations


5. Other loans

Trade debts

1. Suppliers

Other amounts payable

Total

With regard to the financial debts with a remaining period of less than one year (K€ 13,436), it should be noted that a significant

proportion of this debt, relating to S.A. SIPEF N.V. (K€ 5,948), was converted in March 2002 into a long-term loan repayable in five

years.

note 14. AMOUNTS PAYABLE WITHIN ONE YEAR

The increase of K€ 6,793 in amounts payable within one year is mainly due to the rise in the net financial position (in particular the

current portion of debts payable after one year).

The net financial position (financial debts payable after one year and payable within the year – cash investments and liquid assets)

has risen by K€ 6,547. This increase was necessary to finance the extension of our palm oil activities in Papua New Guinea during

this period of low prices.



53

> 5 year

-

8,787

-

-

-

8,787

Residual term

between 1 and

5 year

14

13,314

882

2,273

203

16,686

< 1 year

32

13,404

-

-

-

13,436

note 15. RESULTS

The turnover is made up as follows:

Sales of commodities

Commissions on sales and others

Fees and entitlements

Total

XIV. A. Data relating to the result of the period and the preceding period

Turnover per product

- Palmoil, kernels

- Rubber

- Tea

- Pineapples

- Bananas

- Various fruit

- Cocoa

- Coffee

- Various

- Real Estate

Total turnover for the period

Turnover by geographical origin

- Indonesia

- Papua New Guinea

- Ivory Coast

- Congo

- Vietnam

- Europe

- Others

Total turnover for the period

note 16. OPERATING RESULTS

Palm oil prices fell to their lowest level in 16 years. Rubber prices reached a 30-year low, as a result of the contraction in demand caused

by the slowdown in the world economy. Tea prices for their part were negatively influenced by good harvests, especially in Kenya,

together with the events of 11 September, which seriously disrupted trade with Pakistan and other Middle Eastern countries.

While we managed to raise our productivity, the historically low prices of all our main trading products weighed on the operating results,

which nevertheless remained positive. In view of the continuing losses made by INCASUCA C.A. in Venezuela and BONAL S.A. in Brazil,

these two companies ceased their activities, and the intention is to eventually sell them off.



54

1999

115,631

596

225

116,452

2000

66,961

7,134

9,436

3,093

10,196

1,579

1,016

90

4,957

116

104,578

40,987

26,271

27,790

1,773

4,552

242

2,963

104,578

%

60.5

6.9

6.4

2.2

13.4

4.0

1.4

0.0

5.3

0.0

100.0

37.4

20.3

30.1

2.6

3.1

0.8

5.6

100.0

2000

103,614

315

649

104,578

%

64.0

6.8

9.0

3.0

9.7

1.5

1.0

0.1

4.7

0.1

100.0

39.2

25.1

26.6

1.7

4.4

0.2

2.8

100.0

2001

90,634

104

881

91,619

2001

55,428

6,320

5,826

2,014

12,243

3,641

1,289

28

4,830

0

91,619

34,288

18,592

27,570

2,410

2,820

775

5,164

91,619

XIV. B. Average number of persons employed and personnel charges

1. Fully consolidated enterprises

Average number of persons employed

Personnel charges

- Remunerations and social charges

- Pensions

Average number of persons employed in Belgium by

enterprises of the Group

2. Proportionally consolidated enterprises

Average number of persons employed

Personnel charges

- Remunerations and social charges

note 17. FINANCIAL RESULTS

The financial results reflect the interest on the loans necessary to finance the extension of our palm oil activities in Papua New

Guinea during this period of low prices. These loans are denominated in EUR or USD, and resulted in unrealised translation losses

due to the weakening of the local currency. On the other hand, a weak local currency is generally good for our activities, since the

selling prices are mostly in USD.

note 17a. RESULT ON ORDINARY ACTIVITIES BEFORE TAXATION

As a result of the lower operating and financial results (which in turn were due to historically low selling prices and continuing

expansion), the pre-tax result from normal operations has become negative.

note 18. EXTRAORDINARY RESULTS

The extraordinary income represents the proceeds from the sale of a property in Brussels (K€ 778) and the greater part of our

assets in Kivu-Congo (K€ 520). An additional extraordinary result was made by the sale of part of the stake held by S.A. SIPEF N.V. in

P.T. AGRO MUKO to its subsidiary P.T. TOLAN TIGA (K€ 755), and by the write-off of the badwill in AGRICOLUX S.A. when the

latter company was liquidated (K€ 247).

On the costs side, SIPEF PACIFIC TIMBERS PTY LTD carried out an additional depreciation in order to bring its assets into line with

the estimated sale value (K€ 986).

XIV. C. Extraordinary results

1. Other extraordinary income

- Result ASCO N.V. previous bookyears

- Others

2. Other extraordinary costs

- Settlement Tradevco

- Others



55

Preceding period

347

178

2,785

637

Period

-

223

-

146

Preceding period

not available

14,271

9

31

not available

2,201

Period

not available

13,881

9

31

not available

2,184

note 19. INCOME TAXES

The breakdown of taxes is as follows:

Group companies in profit

Group companies in loss

Total

The taxes were mainly paid in Indonesia, where the tax rate is 30%.

XIV. D. Income taxes

1. Difference between the tax charged in the consolidated income statement for the period

and the preceding periods and the amounts of tax paid or payable in respect of those

periods, provided that this difference is material for the purposes of future taxation

note 20. CONSOLIDATED RESULT

The share of third parties in the results amounts to K€ -751, located in Indonesia (K€ 703), Europe (K€ 72), Ivory Coast (K€ -890),

Vietnam (K€ -256) and Papua New Guinea (K€ -380).

The companies accounted for by the equity method made a positive contribution of K€ 303. Our insurance division (BDM N.V. and

ASCO N.V.) performed well in operational terms. However, the increased financial charges (higher debt costs resulting from an

acquisition by BDM N.V., together with significant unrealised capital losses on the ASCO N.V. securities portfolio) had a negative

impact on the net result. The profit made by BDM N.V. (K€ 235) and ASCO N.V. (K€ 135) was partly offset by the loss in

PLANTATIONS J. EGLIN and CIE S.A. (K€ -67).

To arrive at the group's share of the net result, the following items have been added to the S.A. SIPEF N.V. result:

Results S.A. SIPEF N.V.

Results consolidated subsidiaries (full and proportionate)

Share in the results of associated companies

Write down of consolidation differences

Elimination of gross dividends (P.T. KERASAAN and B.D.M. N.V.)

Liquidation AGRICOLUX S.A.

Sale shares P.T. AGRO MUKO to FRANKLIN FALLS TIMBER CY

Sale shares P.T. AGRO MUKO to P.T. TOLAN TIGA

Consolidated capital gain sale shares P.T. AGRO MUKO to P.T. TOLAN TIGA (10% minority shareholders)

Elimination amounts written off financial fixed assets SIPEF PACIFIC TIMBERS PTY LTD

Elimination amounts written off financial fixed assets GALLEY REACH HOLDINGS PTY LTD

Change evaluation rules Indonesia (historical exchange rate instead of closing rate)

Conversion differences long term loans

Write back profit on stocks PHU BEN TEA J.V. CY

Changes evaluation rules SOUTH EAST ASIA HOLDINGS N.V.

Total consolidated result

Minority interests

Net profit, share of the Group



56

Period

6,114

-9

303

-2,494

-432

-195

-3,067

-9,873

755

2,550

3,583

-778

863

55

-11

-2,636

-751

-1,885

Average %

33%

5%

Preceding period

-19

Taxes

2,552

-368

2,184

Period

442

Depreciation

goodwill

294

2,200

2,494

Current result

before tax

7,475

-9,839

-2,364

Taxable

7,769

-7,639

130

note 21. RIGHTS AND COMMITMENTS NOT REFLECTED IN THE BALANCE SHEET

XV. Rights and commitments not reflected in the balance sheet

1. Amount of personal guarantees, given or irrevocably

promised by the enterprises included in the consolidation,

as security for third parties' debts or commitments

XVI. Relationships with affiliated enterprises and

enterprises linked by participating interests

but not included in the consolidation

1. Financial fixed assets

Participating interests and shares

Amounts receivable

2. Amounts receivable

Within one year

4. Amounts payable

Within one year

5. Personal and real guarantees

given or irrevocably promised, as security of debts or

commitments of affiliated enterprises

7. Financial results

Income from current assets

XVII. Financial relationships with directors or managers of the consolidation enterprise

A. Total amount of remuneration granted in respect of their

responsibilities in the consolidation enterprise, its subsidiaries

and its affiliated enterprises, including the amounts in respect

of retirement pensions granted to former directors or managers



57

Preceding period

600

Preceding period

1

-

-

-

-

-

Period

353

Period

-

Period

-

-

-

-

-

-

Preceding period

2,953

3,219

308

267

600

13

Period

3,049

3,538

460

704

-

-

Affiliated Enterprises linked with

enterprises participating interests

Statutory auditor’s report on the consolidated financial statements for the year ended December 31, 2001 to the shareholders’ meeting of the company S.A. SIPEF N.V.

To the Shareholders,

In accordance with legal and statutory requirements, we are pleased to report to you on our audit assignment which you have entrusted

to us.

We have audited the consolidated financial statements as of and for the year ended December 31, 2001 which have been prepared under

the responsibility of the Board of Directors and which show a balance sheet total of € 127,697,287 and an income statement resulting

in a consolidated loss for the year of € -1,885,422. We have also examined the consolidated Directors' report.

Unqualified audit opinion on the financial statements

We conducted our audit in accordance with the standards of the “Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial

statements are free of material misstatement taking into account the legal and statutory requirements applicable to consolidated

financial statements in Belgium.

In accordance with these standards, we considered the group's administrative and accounting organization of your company as well

as its internal control procedures. We have obtained explanations and information required for our audit. An audit includes examining,

on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes

assessing accounting policies used, the basis for consolidation and significant estimates made by management, as well as evaluating

the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements give a fair and true view of the group’s assets, liabilities, consolidated financial

position as of December 31, 2001 and the consolidated results of its operations for the year then ended, and the information given in

the notes to the consolidated financial statements is adequate.

Additional certifications (and information)

The consolidated directors’ report contains the information required by the Companies Code and is consistent with the consolidated

financial statements.

Brussels, April 9, 2002

The Statutory Auditor,

DELOITTE & TOUCHE

Réviseurs d’Entreprises SC s.f.d. SCRL

Represented by

P. MAEYAERT

M. VAN TRIER

Statutory Auditor’s report



58



59

SIPEF ■ Annua l repor t 2001

60

Oil palm nursery inIndonesia

Young planting inIndonesia

Documents

Annual report 2001 ı SIPEF Consolidated accountsASSETS notes FIXED ASSETS I. FORMATION EXPENSES 1 II. INTANGIBLE ASSETS 2 III. CONSOLIDATION DIFFERENCES 3 IV. TANGIBLE ASSETS 4 A