cosumar | raffinage et extraction de betterave et canne à
TRANSCRIPT
A SWEET TALK WITH THE CEO 7 2014 KEY HIGHLIGHTS 8
VALUE CHAIN 9
CORPORATE PROFILE 11Strong governance 12Dynamic HR policy 19
A corporate social responsability 23
CAP TO EXCELLENCE 2016 27Projects requirements 29
Challenges 33« Improve » program : SAP deployment project 37
BUSINESS AMBITIONS 39Strengthening our national production 41
Diversifying our energy sources 47Optimising and increasing our production 49
PERFORMANCES 53 Markets insights 55
Agricultural performances 56Industrial performances 58
Corporate financial performances 61
FINANCIAL STATEMENTS 63Consolidated financial statements 64
Company accounts 71Audit report 74
Resolutions 2014 78
2014ANNUAL REPORT
EXECUTIVE SUMMARY
How would you assess the 2014 performance?« 2014 was a year in which we have been able to progress very satisfactorily with regard to our forecasts, thanks to two major elements, namely favourable weather conditions and good technical and agricultural performances. Our 2014 performances therefore reflects the upgrading and improvement efforts we made on the entire value chain, starting with our agricultural upstream. »
« We are proud of our role as an aggregator and we recognize its importance »
a sweet taLK wItH tHeCHIEF EXECUTIVE
OFFICER
Customer focus
strategy
is the key word
for all our
ambitions
”
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a sweet taLK wItH tHe
Mohammed FIKRAT
CHIEF EXECUTIVE OFFICER
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Speaking of your role as an aggregator, what are your ambitions for the industry?« We are proud of our role as an aggregator and we recognize its importance. COSUMAR remains true to its sector development strategy through integration. We already support nearly 80,000 farmers in beet and cane growing. We ensure their whole production and help them improve their yields through R&D, which led to the use of high-performance monogerm seeds for example, or through mechanization development. This is an ambitious target: increasing yields to over 12 tons of sugar per hectare by 2016 and being able by 2020 to meet over 56% of the country’s needs for locally produced sugar. »
This target also involves improved industrial capacity and productivity…« Indeed, considerable investment and modernization efforts have been made at the level of our manufacturing facilities. These efforts are part of an ongoing drive for improvement on our whole processes. The refinery, the SUNABEL sugar factory and the packaging lines went through major transformations last year, as Lean Management was implemented on our production lines, allowing for optimized costs and improved yields. »
2014 was clearly a year of change for COSUMAR. what does your new visual identity mean from a strategic angle?« We have a corporate development plan with a self-explanatory name: “Cap to Excellence 2016”. This project aims to radically transform our company’s entire orientation so as to place customers at the heart of our organization. COSUMAR’s new identity is the visual expression of this approach. It brings a first message to all our customers and partners: COSUMAR is an innovative, modernizing and dynamic company. »
Could you tell us more about COSUMAR’s new ambitions?« At COSUMAR, we strive to meet our customers’ expectations through consistent and impeccable product quality, which we modernize and adapt to the various consumption modes. Our ambitions are both Moroccan, with the willingness to continuously increase national production, and international, with the implementation of a powerful export policy that targets an export volume of over 200,000 tons per year by 2016.
In order to achieve these ambitions we enjoy new synergies within the Group, including WILMAR, a world-leading agribusiness that fully supports our development strategy in the African continent. All of our Moroccan institutional partners are also committed to supporting our responsible corporate approach as part of a logic of shared wealth development and sustainability for our business. »
2014 Key HIGHLIGHTS
56,700 HAOf area under
cultivation for 2014-2015
(beet and sugar cane)
478,000 tonsof white sugar extracted from
local sugar crops
Awarding of the sanitary anthorization from ONSSA
40% coverage
rate of local needs
(against 29 %in 2013)
61.1 tons
Per hectare :
Cropyield
3.2 Million tons
of sugar beet produced (+ 51%)
82.5% Group
extraction rate
Against 81.8% in 2013
Awarding of the
“Casher” and “Halal” labels
on “Enmer” products
Total de-netting
of the fuel price as of
February 2014
Completionof phase 2
of the transferof COSUMAR’s
control by SNI in
January 2014
COSUMAR GROUp LOCATIOnS
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VALUeCHAIn
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IN f
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IN
PACKAGING
RAW SUGAR IMPORT
EXPORT
AGRICULTURAL PRODUCTION
Sugar cane Sugar beet
INDUSTRIAL PROCESSINGSugar extraction from the crops
raw sugar refining
LOCAL DISTRIBUTION Large and medium sized supermarkets
Wholesalers, industrialists
Local consumers
Packaging
Loaves, granulated sugar, moulded sugar
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CORPORATE PROFILE
A pioneer in the Moroccan sugar industry since 1929, COSUMAR produces sugar from the extraction of local sugar
crops and refining of imported raw sugar. Its product range includes sugar loaves, cubes, lumps, and granulated sugar, which are distributed localy and exported by the company.
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SHAREHOLDERS
the arrival of new shareholders into COsUMaR’s capital, including wILMaR, asia’s leading agribusiness group and a number of large Moroccan institutions, offers new opportunities and synergies for strengthening the Group’s strategic ambitions.
STOCK EXCHANGE
the nominal value reduction of shares meets the need to enhance the stock’s liquidity and make the COsUMaR’s stock accessible to a wide audience.
SUPPORT COMMITTEES
RISK AND AUDIT COMMITTee
Mr. Khalid CHeDDaDI
Mr. Jean-Vincent PIOt
Mr. Hamid tawFIKI (RCaR)
STRATegIC COMMITTee
Mr. Jean-Luc Robert BOHBOt
Mr. Mohammed FIKRat
Mr. ali HaRRaJ
Mr. Régis Karim saLaMON
HUMAN ReSOURCeS COMMITTee
Mr. Jean-Luc Robert BOHBOt
Mr. Mohammed FIKRat
Mr. Hicham BeLMRaH (MaMDa)
STROnGGOVeRNANCe
Stock price (MAD) PIR (%)
2013
1.951
2014
1.600
2013
13
2014
10.48
wilmar sugar holdings Pte ltd : 27.5%
wilmar sugar Pte ltd : 2.00%
CIMR 12.81%
wafa assurance 7.34%
RCaR : 6.99%
CMR : 4.42%
MCMa : 4.16%
MaMDa : 3.48%
Islamic DevelopmentBank : 3.41%
RMa CaP DYNaMIQUe : 1.54%
saHaM assURaNCe : 1.29%
aXa assURaNCe : 0.97%
Other shareholders : 24.09%
BOARD OF DIRECTORS
ADMINISTRATORS
Mr. abdellaziz aBaRRO
Mr. Jean-Luc Robert BOHBOt
Mr. Khalid CHeDDaDI
Mr. Jean-Vincent PIOt
Mr. Régis Karim saLaMON
MaMDa represented by Mr. Hicham BeLMRaH
wafa assurance represented by Mr. ali HaRRaJ
RCaR represented by Mr. Hamid tawFIKI
CEO
Mr. Mohammed FIKRat
SUPPORT COMMITTEES
RISK AND AUDIT COMMITTee
Mr. Khalid CHeDDaDI
Mr. Jean-Vincent PIOt
Mr. Hamid tawFIKI (RCaR)
STRATegIC COMMITTee
Mr. Jean-Luc Robert BOHBOt
Mr. Mohammed FIKRat
Mr. ali HaRRaJ
Mr. Régis Karim saLaMON
HUMAN ReSOURCeS COMMITTee
Mr. Jean-Luc Robert BOHBOt
Mr. Mohammed FIKRat
Mr. Hicham BeLMRaH (MaMDa)
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MANAGEMENT TEAM
Chief executive Officer Mohammed fIKRAT
Deputy Managing Director in charge
of the Refinery and Doukkala Sugar Factory Mohammed Jaouad KHATTABI
Deputy Managing Director of SURAC & SUNABeL Hassan MOUNIR
Purchasing Director Imad gHAMMAD
Upstream Agricultural
and Technical Coordination and Communication Director Abdelhamid CHAfAI eL ALAOUI
Sales, Marketing and Supply Chain Director Moulay Ali ALAOUI
Director of Doukkala Sugar Factory Abdeljaouad SLAOUI
Director of SUCRAFOR Salah NAHID
General Affairs and Institutional
Relations Director Youssef BeNSBAHOU
Finance and Management
Control Director Tarik BOUATTIOUI
Information Systems and Human Resources
Acting Director Ahmed eCHATOUI
Refinery’s Industrial
Unit Director Abdeljalil KADDOURY
Director of SUTA Ali eL MOUJAHID
Deputy Managing Director & Advisor Assou MAHZI
International Development Director Mouhcine BAKKALI
Strategic Projects, Sustainable Development,
Internal Audit and Risk Management Director Mohamed Aziz DeRJ
Sucrunion Director Abdeslam HALOUANI
AGA Ingenierie Director Abdelmotalib eL ABBADI
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VISION& STRATEGY
for more than 85 years, the COSUMAR group has been the leader of sugar production in Morocco. A company listed on the Casablanca Stock exchange, with international private shareholders, COSUMAR is showing new, forward-looking momentum.
New, forward-looking momentumat the national level, COsUMaR has strengthened the modernization of the agricultural sector and modernized its production capacity. at the international level, the company is targeting new markets, in particular on the african continent which is perceived as a growth driver.
this development momentum carries strong ambitions for COsUMaR which aims to become a regional player in the agro-industry with diversified activities, generating sustainable value and being socially responsible for all its stakeholders.
Strong strategic orientationswhile supporting its commitment to developing agricultural upstream with a view to creating shared wealth, COsUMaR has pursued its continuous improvement and industrial tool modernization initiative aimed at increasing its production capacity with an eye to better address its customers’ needs.
Strategic pilars:• enhanced customer focus across the full span of the
value chain; • Improved productivity and extended agricultural
upstream crops; • Optimized operational and industrial processes; • Increased production and export volume; • Implementation of a culture of excellence for our
Human Resources.
Ambitious target figures
• 2020: +56% coverage rate of national sugar consumption
• 2016 : 100% mechanization rate• 2016 : sugar yields
of 12 tons per hectare against 10.4 tons
per hectare in 2014
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Cosumar intends to develop its export
activity to a volume exceeding 200,000 tons per year.
It aspires to become a major regional exporter while making its brand better known on the global market.
the Group aims at improving competitiveness, margins, ratios of consumption and export
logistics costs while building on the development projects underway.
the implementation of a dedicated organization and of efficient processes support the export activity.
the diversified product offering (cubes, lumps, small grain sugar …)
makes export a profitable and sustainable activity.
Cosumar thus aspires to become a renowned player in white sugar
trading and export.
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DYnAMIC HUMAn RESOURCES
POLICy
COSUMAR’s HR policy supports the rollout of our
« Cap to excellence 2016 » Corporate Project
by establishing a genuine culture of excellence
within all of its Human Resources.
SuppORTING CAREER DEVELOpMENT
The new Human Resources policy aims at ensuring the right match between employees and the positions they should held, leveraging the diverse talents within the company, supporting skills development for each of them, and professionalizing all company players.
Development ambitions are based on strong technological change with a complete overhaul of the Company’s Information system, as well as the modernization of the entire industrial tools and technical means, and process optimisation.
all these changes require continued monitoring of Human Resources through new integration, training and career development programs.
to achieve greater effectiveness in this context of change, COsUMaR also wishes to place greater responsibility on its managers.
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In 2014, the HR training plan addressed several themes:• Personal development through the renewal of
personal development cycles (school of mastery, developer manager, leader manager and operational manager and leadership);
• QSe through the training program on energy audit so as to comply with the requirements of Law N°47-09 on energy efficiency;
Number of main-days
3 681
Business
Managementand personal development
Qse
agricultural upstream business
support
• english e-learning by executives and supervisors with a “Management” program for executives;
• In addition to the technical trades’ training for skills upgrading and improvement.
SuppORTINGCHANGE
The target of this «Human Capital» project is to support the transition from an «achievement-oriented» corporate culture to a “result-oriented” corporate culture.
the stakes being:• integrating a change of context in a market that is
increasingly open to competition and focused on international expansion;
• strengthening transversality across business areas (production, processing, marketing, logistics, support);
• demonstrating inter-generational wealth, while taking into account each person’s experience.
In order to initiate and support this paradigm shift within the company, a new leadership behaviour has been defined and referred to as « leadership diamond », by reference to its five facets:
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Training assessment
executives207
Participants
TRAINING pROGRAM
The training plan implemented by COSUMAR contributes to implementing the operational excellence approach within the group while supporting mobilizing projects at the HR level, including: Lean Manufacturing, energy efficiency and the Improve project.
Nonexecutives
1 578Participants
> VISIONIt ensures greater cohesion within a team; everyone at their own level must have a clear vision of their activity and objectives. this vision, of course, fits within the Group’s overall strategic vision.
> SHARINGthis includes the ability to share the company’s vision with all its components, while explaining this vision to ensure adherence to it.
> LISTENINGListening is an essential part of being a good leader. It is a repository of information and improvement within the company. It is also a way to increase employee engagement and develop closer relations.
> COMMITMENTthis is about sticking to decisions made and ensuring that our teams do likewise. In a word, staying the course…
> ROLE MODELthe best evidence a leader can give to their
teams and colleagues on sharing, listening and involvement is their exemplary
behaviour.
pATH TO SuCCESS : pROJECT « IMpROVE »
COSUMAR, through its Human Resources direction, has taken a leading role as part of project “Improve” to implement a true job and skills management in order to lead the change in terms of the new business practices, supported by the eRP tool. A momentum for change and a collaborative spirit between business areas have been instituted to achieve widespread adoption of best practices at the business area level.
a momentum for change and a collaborative spirit across business areas have been introduced to disseminate the adoption of best practices at business line level.
In order to deploy this momentum, important work has been carried out in the area of internal communication (design and distribution of periodic newsletters, on-site preparation meetings, kick-offs, etc), training (trainers, Improve relays and end users, etc) and organization of teams for the deployment.
Executives’ convention « Cap to Excellence 2016 »
the 2014 executives’ convention falls in line with the “CaP to excellence 2016” project while focusing on the individual attitudes and behaviours of executives, namely: customer orientation, international expansion, innovation and leadership.
the convention has been guided by the following principles:1. Involving all executives in building the contents of
the convention and, by extension, in COsUMaR’s corporate project.
2. transforming the attitudes of executives: − from spectators into actors; − from beneficiaries to contributors; − from salaried to committed staff.
3. Giving explicit form to their adherence on the day of the executives’ convention around COsUMaR’s corporate project.
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CORPORATESOCIAL RESPONSIBILITY
Asserting the company’s Social and environmental policy includes all stakeholders involved in COSUMAR’s
ecosystem across the entire value chain, from agricultural upstream to the final consumer.
As a responsible aggregator, COSUMAR undertakes multiple actions for farmers and their families, which aim at developing the regions and promoting access to health care and education. By doing so, COSUMAR has been working with civil society for many charitable organizations.
Overview of some of the CsR actions conducted in 2014:
• Literacy, hygiene and health awareness programme: 100 wives and daughters of farmers were taken care of for 13 month with a 300-hour course;
• Prize of the best baccalaureate students children of farmers to encourage higher education;
• Promotion of education and the fight against school dropout in the areas;
• support for a number of rural schools as part of the partnership with “alJisr” association;
• access to health insurance for farmers and their families: 3.500 aggregate farmers insured in 2014;
CSR ACTIONS FOR THE RuRAL WORLD
• Prize of the best male/woman farmer of the year with trips for two to “el OMRa” as a reward: 31 farmers from Morocco’s five regions were appointed under crop year 2013-2014;
• assistance with and support for the creation of agricultural service providers: increase in providers’ turnover from MaD 3.78 million to MaD 33.2 million, or a 88.58% growth between 2006 and 2015.
Farmers’ barometer
COsUMaR also strives to deploy attentive and ongoing listening to the farmers’ needs through the implementation of a social barometer that measures the satisfaction rate of its farmers and ensures better knowledge of their needs and expectations. In 2014, more than 75% of farmers were satisfied of the services presented by the Group’s sugar factories.
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PUBLIC AUTHORITIES
RegIONALAUTHORITIeS
TRAININg AND ReSeARCHINSTITUTeS
NgO - CIvIL SOCIeTY
ASSOCIATIONSAND feDeRATIONS
AUTHORITIeS
INDIReCT CUSTOMeRS
fINANCIAL OPeRATORS
AND INveSTORS
SeRvICe PROvIDeRS
INDUSTRIAL SUPPLIeRS
AgRICULTURAL SUPPLIeRS
AGRICULTURAL UPSTREAM PARTNERS
SHAREHOLDERS SOCIAL PARTNERS
DIRECT CUSTOMERS
FINAL CUSTOMERS
COSuMAR’S ECOSYSTEM
SOCIAL ACTIONFOR EMpLOYEES AND THEIR FAMILIES
COSUMAR pays particular attention to the well-being and fulfilment of its employees and their families through multiple social benefits and the organization of various festive events.
• survey of employees’ needs and expectations through the social Barometer;
• Provision of summertime centres; • Organization of woman’s day; • Organization of the executives’ convention in a
playful setting; • agreements with the banking institutions at advan-
tageous terms ; • subsidization of fitness club memberships for the
well-being of employees; • Many social actions dedicated to the employees’
children: Vouchers for ashoura, vacation camps, award of excellence for the best baccalaureate stu-dents, organization of the annual ceremony for the presentation of the artistic workshops by the child-ren who participated in the vacation camps, etc.
CSR ACTIONS FOR THE DEVELOpMENT OF THE ECOSYSTEM
Support for very Small and Medium enterprisesOn the occasion of the sMe Forum on December 2014, a partnership agreement was concluded between COsUMaR and attijariwafa Bank to support Very small and Medium enterprises working in the COsUMaR ecosystem through a support and assis-tance package.COsUMaR has thus obtained the « productive eco-system model » prize awarded by the Forum’s orga-nizers.
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CSR ACTIONS IN FAVOuR OF CIVIL SOCIETY
• supervision of Marketing and Communication projects as part of the partnership between COsUMaR and IsCae. In 2014, the study focused on «the best digital communication strategy»;
• «Get ready for your exam» tour to support higher education students in the preparation of their exams by coach Nahed Rachad through 5 conferences held in Casablanca, Rabat, Oujda, Meknes and Beni Mellal;
• sponsorship of the National Festival of educational drama held by the Regional academy for education and training of Gharb Chrarda Bni Hssen;
• signature of a partnership agreement between sURaC-aL JIsR and DaR taLIBa association in Dar el Gueddari for the provision of school and social monitoring of young girls;
• Continued implementation of social actions to combat school dropout as part of the partnership with «al jisr» association in the five areas where the COsUMaR’s group is present;
• Mentoring and spon sorship of students as part of the partnership with «Injaz al Maghrib» association;
• Organization of the 6th edition of the contest for the Best end of studies Projects on the sugar sector in favour of public and private higher education institutions.
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CAP TOEXCELLENCE 2016
Through «CAP to Excellence 2016» corporate project, COSUMAR Group aims to reinforce its leadership
position and strengthen the development of its activities at the national and regional level.
With this in mind, our corporate project, which is placed under the label of Excellence, revolves around
five strategic axes, namely the strengthening of our market orientation, external growth, the diversification of our activities,
operational excellence and human capital development.
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PROJECTSREQUIREMENTS
according to this logic of excellence, COsUMaR has given priority to
Quality and food safety, Health, Hygiene & safety Management of Human
Resources and respect for the environment.
2014 QSE highlights
• Success of the audit for the renewal of SUNABEL KEK’s reception and control laboratories;
• Success of the accreditation follow-up audits of SUNABEL MBK’s reception and control laboratories;
• Award of ONSSA’s health authorizations;
• Awarding of the sponsorship prizes for the National Safety Award by SUNABEL KEK;
• Success of the accreditation follow-up audits of SURAC’s reception laboratories;
• Success of the QSE follow-up audits for the two sites SURAC Ksibia and SURAC MBK;
• Awarding of the sponsorship prizes for the National Safety Award by SURAC MBK;
• Renewal of ISO 9001 certification for the Sales and Marketing Department.
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FOOD SAFETY AND QuALITY SAFETY
all of COsUMaR’s production sites have obtained the sanitary authorization for their activities by the National Office for the Health safety of Food products (ONssa). also, the sUNaBeL, sURaC and sUta sugar factories are Qse certified and their laboratories hold all the accreditations.
HEALTH, HYGIENE & SAFETY MANAGEMENT
the fully modernized Casablanca sugar refinery responds to the Quality, safety and environment (Qse) Integrated Management system. the refinery has indeed obtained the safety, Health and environment triple certification: IsO 9001, OHsas 18001 and IsO 14001.
CERTIFICATIONS
• FSSC 22000
certification for food safety
• ONSSA authorisation
For the health safety of food products
• ISO 14 001:
environmental management
• ISO 9001:
quality management
• ISO 17025 :
laboratory quality management
• OHAS 18001:
Health & safety management in the workplace
• Halal & Casherlabels
on «ENMER» products
Ensiled production
SUTA
Installation of a bagasse
boiler at SUNABEL MBK
5th Moroccan project ever recorded throughout
history under the UN Clean Development
Mechanism project (CDM)
Installation of
refrigerants for water decanters
Installationof PKF filters
for sludge filtrationin addition
to the reduced odour nuisances
Use of dried
pulp From sugar
beet processing; for livestock
feeding
Use of
bagasse, fibrous residue of sugar cane as bioenergy
for sugar factories
Use of nanofiltration
Creation of waste water
treatment plants at the Group sites and
re-use of treated water for irrigation
(100%)
ENVIRONMENTAL COMpLIANCE
COsUMaR strives to keep up with the IsO 14001 certification and CsR CGeM label through the ongoing and rigorous deployment of a responsible environmental management.
Treatment of liquid discharges
By-product valorisation
Reduction in CO2 emissions
Reduction in water consumption
Processing of molasses,
the last by-product from the extraction and refining
in the form of a very thick syrup for yeast
manufacturing
CERTIFICATIONS
• FSSC 22000
certification for food safety
• ONSSA authorisation
For the health safety of food products
• ISO 14 001:
environmental management
• ISO 9001:
quality management
• ISO 17025 :
laboratory quality management
• OHAS 18001:
Health & safety management in the workplace
• Halal & Casherlabels
on «ENMER» products
FAO medal for COSUMAR’s aggregation model awarded in 2009
«CGEM’s CSR label granted to all Group subsidiaries in 2011»
«Top Performer» trophy by Vigeo agency in 2012
Prize of «Pioneers of corporate social responsibility and green economy
in Africa» in 2012
Prize of «the Corporate citizen of year 2013» awarded by the Rotary
Club Mers Sultan
TROPHIES AND HONORS
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CHALLENGES
Modernising the company by building on more than 85 years of experience is
at the heart of COsUMaR’s ongoing evolution policy. today, the company’s
biggest challenge is to follow the evolving needs of both Moroccan and
international, increasingly demanding clientele.
with this intention, COsUMaR has made customer orientation an essential
premise, throughout its value chain and at the level of all its processes.
COsUMaR’s new identity also supports the Group’s international expansion
and confirms its ambition of becoming a regional player.
CuSTOMER FOCuS STRATEGY
Through «Cap to excellence 2016» corporate project, it is COSUMAR’s entire strategic orientation which is based on market awareness and consumer expectations.
aware of how important brand is to convey corporate values and product awareness, COsUMaR has undertaken since June 2012 a major strategic project for the recasting of its portfolio of brands that were formerly held by the Group subsidiaries, each of which has a regional brand. the purpose of this project called “IsHRaQ” is to refocus the marketing of the Group’s various products around well-known brands able to cope with any new entrant during the liberalization of the sugar industry. the “IsHRaQ” project therefore addresses a major strategic pillar
of “Cap to excellence 2016» corporate project relating to customer focus, the main strategic axes of which are:
This customer focus strategy has 4 key objectives:
1 - strengthening COsUMaR’s brand image and reputation with respect to its ecosystem.
2 - Consolidating its image as a corporate citizen by emphasizing its commitment to agricultural upstream.
3 - Reiterating the importance of sugar as a natural product.
4 - establishing a new marketing & commercial dynamics for a better anchoring of COsUMaR’s brands.
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A MODERNIZED AND ENHANCED LOGO
as part of “IsHRaQ” project, COsUMaR’s visual identity was reviewed with softened colors, typeface and shapes. It symbolizes the project values through openness to our partners, direct customers direct and final consumers while emphasizing the naturalness of our products. COsUMaR is thus positioned as a customer-friendly umbrella brand that is closer to its consumers.
Modernity and dynamismthe company’s emblematic colours are asserted in this new COsUMaR logo, though softened with a luminous halo. arabic and Latin fonts have been modernized and refined at the curve level, just like the cartouche which still includes COsUMaR’s emblems and the now curved base of which evokes a smile, the symbol of a relationship of mutual trust with all its customers and partners.
Affirming valuesthis new COsUMaR logo subtly celebrates the values of pleasure, friendliness, but also energy and naturality of sugar, a vital product embedded in the Moroccan culture and tradition. It enables COsUMaR to reaffirm its position as a brand with a strong commercial ambition. a customer-oriented brand committed to quality and innovation.
«The «Ishraq» project is a key stage
for the successful implementation of our
«Cap to Excellence 2016» corporate project, which includes in its fundamentals
a new approach to enhancing COsUMar and its entire product range. Through the modernization of our image
and of our entire product packaging, «Ishraq» is thus fully in line with our continuous improvement
approach for the satisfaction of our customers.»
Nour El Houda BASTOuN,Marketing Manager
“The development of our export activity is based
on recognized know-how and more than 85 years of expertise. In 2016, we aspire to export a volume
of sugar exceeding 200 000 tons and to become a reconized sugar player in all of africa and the Middle-East.
We also plan to make of the export a fully-fledged business unit in house.
Btissam BELGHAZI, Business Development and Export Manager
EXpORT, A STRONG GROWTH DRIVER FOR COSuMAR
With an installed production capacity of 1.65 million tons per year that exceeds domestic consumption by 1.2 million tons, COSUMAR began its first exports of refined sugar in 2013 to West African countries and to countries surrounding the Mediterranean.
with total estimated needs of 1.2 million tons of sugar per year, local consumption is approximately 36 kg of sugar per capita and per year, placing Moroccans among the world’s largest sugar consumers.
the national market has achieved a certain maturity, stabilizing around an annual increase of 1.8%, hence the importance for COsUMaR to find other growth drivers through the implementation of an export and international market penetration strategy.
COsUMaR aims to expand internationally and mainly to capture the african market where there is strong demand and a deficit of 6 million tons of sugar per year.
Both export and Cosumar’s internationalization eventually represent strong growth prospects. several paths for geographical diversification are thus simultaneously explored on the continent.
this approach is based on the competitiveness of the company which wishes to supply the african market with sugar and offer a quality range of products.
In 2014, COsUMaR has gradually ramped up in production as part of an approach that aims to develop the export department into a fully-fledged business unit. since the sugar export target was to exceed 200.000 tons per year by 2016, and more than 400.000 tons per year in the medium term according to the opportunities offered by the potential market and while continuing to ensure the regular supply of the national market in sugar.
this internationalization strategy converges with that of our reference shareholder. wILMaR intends to rely on COsUMaR to grow its presence in west africa, thereby offering the company new opportunities for synergy that bring development acceleration.
COsUMaR currently exports white sugar to about ten countries of africa and the Mediterranean basin under a regime of temporary admission not benefiting from any subsidy.
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«The «Ishraq» project is a key stage
for the successful implementation of our
«Cap to Excellence 2016» corporate project, which includes in its fundamentals
a new approach to enhancing COsUMar and its entire product range. Through the modernization of our image
and of our entire product packaging, «Ishraq» is thus fully in line with our continuous improvement
approach for the satisfaction of our customers.»
Nour El Houda BASTOuN,Marketing Manager
“The development of our export activity is based
on recognized know-how and more than 85 years of expertise. In 2016, we aspire to export a volume
of sugar exceeding 200 000 tons and to become a reconized sugar player in all of africa and the Middle-East.
We also plan to make of the export a fully-fledged business unit in house.
Btissam BELGHAZI, Business Development and Export Manager
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«IMPrOVE falls under the multi-faceted
transformation programme initiated with the acquisition of the state
sugar factories. It finalizes the alignment of our business and support processes on the best international practices and on the company’s new strategic objectives
associated with the developments in its ecosystem. Next year will be devoted to the integration of the business and support processes into the saP tool and to the total introduction of all these modules.
This operation will be implemented in 3 successive phases, with the purpose of achieving the “Go-Live” by June 2015.»
Amine LAHBICHI, Sub-Director in charge of managing
the transformation project for the Improve
Information System
«IMPROVE» PROGRAM: SAP DePLOyMeNT PROJeCT
progress report at the end of 2014
since the 2010 masterplan, our teams were mobilized to:- Define the strategy for the integration of the future
eRP; - Harmonize the business processes; - Prepare the business data repositories.
In March 2014, the Program began integration of the saP software package by mobilising a project team of 90 employees.
the main achievements of year 2014:- Launch Day: March 20, 2014• this day witnessed mass mobilization of the Group
for the presentation of the methodological step and project planning;
• employees were sensitized to the project’s success factors: mobilization and quality of business repositories.
- Design phase (from April to October 2014)• the Improve project team has specified and
approved the adequacy of COsUMaR processes with the saP solution;
• after 6 months of design, a prototype version of the final solution has been completely tested by the project team.
- The Implementation phase (from November to December 2014)
• Between November and December 2014, the Group’s specificities have been implemented in the solution: parameter setting, forms and interfaces…;
• thereafter, comprehensive tests have been conducted to monitor the solution and prepare for the subsequent phases.
Targets set
In 2015, the program will focus on:- the recipe of the final solution; - the deployment at the 8 industrial sites and 5
commercial agencies; - the broadening of the functional scope; - the convergence of the related projects towards
the saP solution (Manufacturing execution system, agricultural Upstream application.).
COsUMaR’s IMPROVe program
is part of a structured approach committed
to Operational excellence
and the Modernization of its Information system.
PROJeCT SCHeDULe 2013
Oct Nov Dec Jan Feb Mar April May June Jul Aug Jul AugSept Oct Dec Jan Feb MarT1 T2 T3 T3 T4
20152014
April Mai June
implem-entation
General and detaileddesign
Go liveV0 V1 V2
Recipe finalpreparation SupportPreparation
1 2 3 4 5Nov
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BUSINESS AMBITIONS
COsUMaR has major ambitions
for the development of its agricultural
upstream under the Morocco Green Plan and reaffirms
its commitment to establishing a strong and dynamic
national sugar industry. to do so, the company has
set ambitious targets of improving crop yields
and profitability to achieve coverage
of over 56% of the country’s needs for sugar by 2020,
from local production.
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«sugar cane growing has declined
slightly over the last years due to its low competitiveness
compared with other crops and to the impact of the 2012 freeze.
FIMasUCrE and the Ministry of agriculture and Fisheries have therefore
agreed on the urgent need for an action plan to achieve a production of one million tons of sugar cane for an area
under sugar cane cultivation of 19,300 hectares and a production of 100,000 tons of sugar by 2019,
thus aiming at reviving and maintaining this crop in Morocco.»
Abdellah HADDOu,Agronomic Director
SURAC
STRENGTHENING OUR LOCAL
AGRICULTURAL PRODUCTION
KEY DATA
• 5 sugar regions: Gharb, Doukkala, Loukkos, tadla and Moulouya ;
• Perimeter: 80,000 farmers ; • Cultivated acreage: 60 000 hectares of sugar beet
et 20,000 hectares of sugar cane ; • Production: 3 million tons of beet +1 million de tons
of sugar cane; • employment: the sugar activity creates 10 million
days of agricultural work per year.
2014 KEY HIGHLIGHTS
• Coverage rate: national needs for sugar of 40 % in 2014, with a 56% target by 2020.
Sugar beet : • technical train Mechanization: 100% of production
mechanized in the Moulouya area and 91% for seed planting in all regions;
• Monogerm seed generalization for beet cultivation, sources of a marked improvement in production performances;
• adequate management of the transport operation; • Implementation of an appropriate management for
the month of Ramadan; • Improved production and yields compared to
previous years; • Rate of sugar per hectare: 10.4 tons per hectare with
an average of 12.1 tons per hectare in tadla and 11.4 tons per hectare in Doukkala, which is close to the performances recorded by european countries;
• Return of beet cultivation attractiveness in the perimeters of Gharb and Loukkos, with a harvested area of 14.637 hectares, representing an evolution of 124% as compared to 2013;
• Improved gross income of farmers.
Sugar cane:• Low level of plantings; • Implementation of planting subsidies: MaD 6.000
per hectare; • Persistence of the negative impact of farmers’ debt
to ORMVas at the plantation and grubbing level; • Mechanized cutting and loading: 39% and 43%.
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«sugar cane growing has declined
slightly over the last years due to its low competitiveness
compared with other crops and to the impact of the 2012 freeze.
FIMasUCrE and the Ministry of agriculture and Fisheries have therefore
agreed on the urgent need for an action plan to achieve a production of one million tons of sugar cane for an area
under sugar cane cultivation of 19,300 hectares and a production of 100,000 tons of sugar by 2019,
thus aiming at reviving and maintaining this crop in Morocco.»
Abdellah HADDOu,Agronomic Director
SURAC
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THE 2013-2014 CROp YEAR: A VERY GOOD YEAR
Coverage rate of 40% the coverage rate increased from 29% in 2013 to 40% in 2014. COsUMaR is now targeting 56% by 2020. this challenge still requires a strong and continuous impro-vement in productivity performance.
Mixed results for sugar cane Farmers’ substantial indebtedness and the low attractiveness of this crop have negatively impacted the plantation level which was only 3.272 hectares. Production decreased compared to the previous crop year, mainly due to a decline in yields caused by irrigation problems.
an action plan is currently underway, jointly with the Ministry of agriculture and Fisheries in order to revita-lize the plantings and improve performance through: selection of the best varieties, introduction of new frost-tolerant varieties, development of mechaniza-tion, and strengthening of R&D programmes.
2014-2015 outlookthe results recorded during crop year 2013-14 have positively impacted the start of crop year 2014-15, marked by the farmers’ strong demand for sugar beet. thus, the area sown under crop year 2014-15 is 56.700 hectares. also, the level of rainfall and the weather conditions recorded are a good sign for the 2015 beet crop year.
Sharp rise of sugar beet these results are due to the efforts made by COsUMaR and its partners for the strengthening of R&D, selection of the best varieties, development of mechanization, etc
• a sugar production in rise by+ 32 %
with 478.000 tonsof white sugar
extracted from local sugar crops in 2014.
• + 51%as compared to
2013 with a productionof 3.2 million tons
of sugar beet.
• a yield of61.1 tons per hectare
and a sugar yield of10.4 tons
per hectare.
“The positive results of the 2013-2014 sugar
crop year are the results of the efforts made by all partners
of the sector.The Group’s strategy revolves around several axes which have proved their effectiveness:
technical train mechanization; improved crop varieties; strengthening of r&D; integration of the best international practice.
This strategy, combined with favourable weather conditions, has allowed to achieve an average national performance
of 10.4T/ha for beet cultivation, with an objective of 12 T/ha by 2016.”
Khadija KHALLOuFUpstream Agricultural
coordination Sub Director
A RESEARCH CENTERFOR SuGAR CROp DEVELOpMENT
Co-created in 2014 by FIMASUCRE in partnership with the Ministry of Agriculture and Fisheries, the new Sugar Crop Research Centre, which extends over 40 hectares, targets the production of certified cuttings for the benefit of producers and the implementation of a research program on beet and sugar cane to address the development issues of the sector.
Objectives and tasks of the SCRC:• Developing agricultural research for sugar crops; • Producing adapted and certified cuttings; • establishing international partnerships (technology
and know-how transfer, etc); • Improving economic attractiveness of sugar plants; • supporting farmers through training and technical
assistance.
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“The positive results of the 2013-2014 sugar
crop year are the results of the efforts made by all partners
of the sector.The Group’s strategy revolves around several axes which have proved their effectiveness:
technical train mechanization; improved crop varieties; strengthening of r&D; integration of the best international practice.
This strategy, combined with favourable weather conditions, has allowed to achieve an average national performance
of 10.4T/ha for beet cultivation, with an objective of 12 T/ha by 2016.”
Khadija KHALLOuFUpstream Agricultural
coordination Sub Director
«The first results of the action plan implemented by sUTa in Tadla region
are already felt: in 2014, the root yield of 69 tons
per hectare broke all records, did production which exceeded one million tons (1.008.000 T)
with a sugar yield of 12.15 T/ha. Our agricultural upstream also achieved certification
of the collective quality management system IsO 9001 V 2008.»
Hassan ZAKI,Head of the production
department, Agricultural upstream, SUTA
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pARTNERSHIpS AND AGREEMENTS WITH INTERNATIONAL INSTITuTIONS
Strong partnershipsfIMASUCRe signed several partnership agreements designed to revitalise the sector by fostering synergy between the knowledge and know-how:• agreement with the French technical sugar Beet Institute (ItB);
• agreement between sURaC, sUNaBeL, ORMVaG and aPPsG for the strengthening of R&D;
• agreement between sURaC and the eRcane institute for sugar cane development;
• agreement with the Interprofessional seed and Plant Federation (FNIs) for R&D on sugar beet;
• Partnership agreement with aIMCRa for R&D on sugar beet.
International presenceCOSUMAR is present in many international institutions of the sugar sector, enabling ot to develop close ties with large international producers, including:• ISO: International sugar Organization • IIRB: International Institute for Beet Research
COsUMaR is member of the comittee an administrator there;
• wABCg: world association of Beet and Cane Growers COsUMaR is the member of the comittee;
• ITB: french technical sugar Beet Institute; • eRcane: sugar cane Research Institute in Reunion
Island; • AfCAS: French sugar Cane association
ON-GOING SuGAR CROp MECHANIZATION
An important focus of the sector modernization and a determining area for the optimized performance and improved profitability of farmers, mechanization has recorded very strong growth on the entire technical train.Rate of mechanization at the end of 2014:
• for sowings: 91%• for hoeing: 53%• for harvesting: 18% for sugar beet and
39% for sugar cane • technical train at the level of Moulouya: 100%
«Mechanization plays a paramount part in the improved
performance of sugar beet. In two years of effort,
sUCraFOr has implemented an integral mechanization of the sugar beet technical train:
every stage from sowing to harvest is mechanized! Cultivation operations have been a 100 % modernized
over the whole area sown to sugar beet. The results improved, as did the income of farmers,
who are becoming ever more numerous to be willing to grow sugar beets».
Mohammed ASKANDER Agricultural Upstream
Sub-Director, SUCRAFOR
SuppORTING OuR FARMERS
COsUMaR and its agricultural partners, within the framework of FIMasUCRe, work together for the defence of farmers’ interests, especially regarding the requests to strengthen the subsidies granted for sugar plant development (agricultural equipment, seed, irrigation, etc).
a solidarity fund has been created, within the framework of FIMasUCRe, to provide support for farmersin the event of major natural disasters.
COsUMaR, as an aggregator of the sugar sector,provides technical, financial and social support for its farmers, helping them improve their performance, income and standard of living, as well as that of their families.
as for the rescheduling of farmers’ irrigation debt, COsUMaR and its partners, within the framework of FIMasUCRe, have conducted several interventions with the ministerial departments concerned. a favourable decision was finally made in June 2014.
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«Mechanization plays a paramount part in the improved
performance of sugar beet. In two years of effort,
sUCraFOr has implemented an integral mechanization of the sugar beet technical train:
every stage from sowing to harvest is mechanized! Cultivation operations have been a 100 % modernized
over the whole area sown to sugar beet. The results improved, as did the income of farmers,
who are becoming ever more numerous to be willing to grow sugar beets».
Mohammed ASKANDER Agricultural Upstream
Sub-Director, SUCRAFOR
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«Optimising our energy expenses is a central aspect of our approach
for improving our competitiveness both in Morocco and at international level.
The energy transition can only be gradual, but no less important, and is also achieved through greater
control of our industrial processes. as for 2015, we target an energy reduction of 3 kg of fuel per ton
of beet processed, representing a saving of 4,200 T of fuel over the year.»
Bouchaib MAHABI,Sub-director in charge of production
at Doukkala sugar factory
DIVERSIFIYINGOUR eNeRGy SOURCeS
OpTIMISING ENERGY
energy consumption has been significantly reduced at all the Group’s sites, thanks to an energy saving strategy based on the automation of certain processes, use of new, more economic techniques, introduction of high efficiency equipment, resizing of utility circuits, full production of white sugar, and re-use of the energy produced.
pROMOTING AN ENERGY MIX: FuEL, CLEAN, COAL AND BIOMASS
A new energy strategyCOsUMaR extends its strategic reflection to the exploration of new energy paths as a possible substitution of the increasingly expensive fuel. For this purpose, the Group has engaged in a project for the progressive conversion of its facilities to the use of other fuels, mainly biomass and clean coal. since this development requires large-scale investment, it will be carried out within 4 to 5 years according to a phased implementation approach.
energy alternatives In parallel with these optimization efforts, COSUMAR has developed the use of alternative sources of energy:
• SUNABeL MBK’s bagasse boilerIn 2014, the use of bagasse allowed to meet 32% of the factory’s overall need for thermal energy, which is its best performance since its installation in 2009.
• ensiled pulp as a substitute for pellets by SUTAensiled pulp permits a reduction in fuel consumption and CO2 emissions. ensiled pulp production increased from 52.000 tons in 2013 to more than 81.000 tons in 2014.
COsUMaR is analyzing the options for a new, diversified and
environmentally friendly energy model, while pursuing a first step
for optimizing its consumption.
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«Optimising our energy expenses is a central aspect of our approach
for improving our competitiveness both in Morocco and at international level.
The energy transition can only be gradual, but no less important, and is also achieved through greater
control of our industrial processes. as for 2015, we target an energy reduction of 3 kg of fuel per ton
of beet processed, representing a saving of 4,200 T of fuel over the year.»
Bouchaib MAHABI,Sub-director in charge of production
at Doukkala sugar factory
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«The extension of sUNaBEL MBK enabled the old
installations to be replaced by state-of-the-art equipment.
The processing capacity has thus reached 6.000 T of sugar beet/day,
representing is an annual capacity of 500.000 T of sugar beet and an equivalent production
of 75.000 T of white sugar. This project also helped optimize our energy consumption.»
Abdelilah EL HASSNAOuI,
SUNABEL PRODUCTION
MANAGER
as part of its «Cap to excellence 2016» corporate project,
COsUMaR is committed to a continuous approach of operational
excellence aiming at optimizing its existing production tool to increase its
profitability and competitiveness. the Group has pledged over MaD 5.5 billion
to invest in its production tool and relied on the expertise
and commitment of its employees to reach the level of excellence intended.
the Group plans to achieve an extraction rate
of 84.60 in 2016 against the current rate of 83.40.
OPTIMISING AND INCREASING OUR PRODUCTION LeVeL
KEY DATA
• Sugar extraction: 7 sugar plants with a total processing capacity of 4 million tons of sugar crops per year ;
• Refining of imported raw sugar: 1 refinery with a production capacity of 3,000 tons of white sugar per day ;
• Overall production capacity: 1.65 million tons of white sugar per year, for a domestic market of 1.2 million tons of sugar per year.
SuNABEL MBK CApACITY INCREASE
as part of the upgrading of sUNaBeL MBK sugar factory, the Group has increased the processing capacity to 6,000 tons of beet per day, representing an annual capacity of 500,000 tons of beet and an equivalent production of 75,000 tons of white sugar.
• MAD 18 million invested
In the modernisation of sUNaBeL MBK : significant increase
in sugar extraction capacity
COsUMaR has favoured Moroccan companies for the design and provision of several pieces of equipment based on the execution plan provided by sUNaBeL MBK. New facilities have thus been integrated into the factory, mainly at the level of the filtration, evaporation and treatment workshops, and other related facilities. the project was effectively introduced during crop year 2014, with the production of UCUMsa 45 sugar, improved yields and rationalized consumption.
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SITE upGRADING
The investments efforts made at the Group sites are based on the use of innovating technologies that optimize the performance installed, while guaranteeing a better quality of finished product and contributing to energy savings.
2014 achievements
RefINeRY • Demolition of the turbine loaf workshop and old
syrup building following the generalization of the new automatic sugar loaf lines;
• Improved operation of the filtration plant through the renovation of certain equipment;
• Reengineering of the raw sugar melting plant station and strengthening of the silo dust extraction sys-tems for white sugar, development of the oversight system;
• Optimised production tool in general; • Discontinuation of the old Chambon ingot
machinery; • Commissioning of four new YILMaZ moulding
machines .
SUCRAfOR Further upgrading of the production tool for a proces-sing of 5,000 tons per day.
DOUKKALA SUgAR fACTORYadjustment of the extraction process to minimise the effect of invertase with very positive results confirmed by a reduction in the levels of the undetermined losses by almost 50% and an improvement in the extraction rate by 1.2%.
SUTAInstallation of eight silage machines of 50 kg that al-lowed to achieve a production of 81,000 tons against 52,000 tons of ensiled pulp in 2013.
IMpLEMENTATION OF “LEAN MANuFACTuRING” IN THE pACKAGING LINE
With a view to achieving optimal profitability of the investment committed and continuing on the path of operational Excellence, COSUMAR is engaged in the gradual deployment of the “Lean Manufacturing” on all of its production lines.
the «Lean Manufacturing» is a management mode that focuses on the eradication of losses with a view to optimising company performance. this new mana-gement has been implemented at the product pac-kaging workshops (sugar loaf, ingot, lump and granu-lated sugar) and at the level of the Refinery and sugar loaf workshop of the sUta factory.
since the introduction of the «Lean Manufac-turing», significant improvements have been noted at the level of the conditioning lines, with rates of return higher than 80% and levels of reject rates lower than 2%. efforts will continue in or-der to strengthen and sustain these positive results by pro-ject completion. «Cap to excel-lence 2016».
«Through the deployment of the Lean Manufacturing
at its new units for sugar packaging in loaves, ingots and lumps,
COsUMar intends to grow its investments.The packaging activity has indeed benefited
from significant developments over the five last years.With the Lean Manufacturing,
it further optimizes its performance and increasing significantly its productivity.»
Mohamed ETTALBI,Director in charge of the packaging
at the Casablanca refinery
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2014 PERFORMANCES
« 2014 was a year in which we have been able to progress
very satisfactorily with regard to our forecasts, thanks to the
combination of two elements: favourable weather conditions
and good technical and agricultural performances.
the 2014 performances thus bear the fruits of the upgrading
and improvement efforts we made on the entire value chain,
starting with our agricultural upstream. »
Mohammed fIKRAT, CeO
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MARKeTS INSIGHTS
NATIONAL
Increase in Local production of sugar by 32%the 2014 sugar crop year generated a production of 478.000 tons of sugar, up by 32% compared to 2013. the coverage rate of market needs by national production stands at 40%.
the 2013-14 crop year also recorded an overall production of 3.2 million tons of sugar beet, in rise by 51% in comparison to the previous crop year with a significant evolution in the yield and sugar yield per hectare which respectively reached a national average of 61.1 tons of sugar per hectare and 10.4 tons of sugar per hectare.
the achievements of crop year 2013-14 have had a very positive impact on the start of the 2014-15 sugar crop year which was characterized by strong demand for sugar beet from farmers.
A stagnating marketsugar sales at the end of December 2014 reached 1.209 thousand tons. the inclement weather at the end of 2014, which caused several major traffic flows to break, have disturbed the movements of products to the affected areas, in particular at the southern area level.
ProspectsFully and responsibly assuming its role in ensuring a regular supply to the national market, COsUMaR has taken all necessary steps to carry out the seedling program for crop year 2014-15 under proper conditions. In addition, adequate rainfall distribution and agricultural dams levels offer better harvest forecasts for the 2015 sugar crop.
For sugar cane, the adoption of urgent measures for the development of new orchards, and the significant improvement of its overall attractiveness are prerequisites for guaranteeing its sustainability.
sugar cane is covered by an action plan to be implemented by FIMasUCRe and the Ministry of agriculture and Fisheries for the revival of this cropping.
INTERNATIONAL
Market situation after four years of a substantial surplus at global level, the year 2014 was marked by a small surplus. equilibrium was delayed due to the high inventory levels accumulated, which continued to weigh heavily on prices.
the year 2014 was again characterized by the continuing fall in sugar prices on the global market, although rates were significantly lower than in the previous two years. In terms of annual averages, raw sugar dropped by 4% in value in 2014, following decreases of 18% and 17% in 2013 and 2012 respectively.
the year 2014 also recorded a slight increase in price volatility on the global market compared with 2013. while in 2013, raw sugar prices had evolved within a range of 3.73 cents/pound, such fluctuation reached 4.00 cents/pound in 2014. Both white and raw sugar prices have fell by almost 9% in 2014, while the trading range has broadened to UsD 106.05/t against UsD 93.25/t in 2013.
2015 global prospectsFor next crop year, analysts anticipate a return to balance, even a deficit between demand and production at global level.
the global sugar market would thus get out of a long cycle of surplus that started in 2010-11. these years of surplus production have raised global sugar stocks to very high levels, representing nearly 44% of one year of consumption at the end of 2013-14, which should prevent an immediate increase in sugar prices on the global market.
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AGRICULTURALPERFORMANCES
the 2013-14 crop year was marked by strong demand from farmers for
sugar beet following the positive results recorded during the previous
season. thus, the cultivated acreage reached 53,530 ha against 37,017 ha
for the previous year. For cane, the planted area was 3,272 ha.
PLANTED AREA (In ha)
Doukkala Gharb-Loukkos BASMoulouyaTadla Gharb-Loukkos CAS
2014
17,393
2013
12,611
2014
14,880
2013
13,011
2014
5,935
2013
3,354
2013
7,917
2014
3,272
2013
437
2014
15,322
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EVOLUTION OF MECHANICALLY SOWN AREAS (in %)
2014 2013
100 %100 %
Doukkala2014 2013
92 %
100 %
Moulouya
2014 2013
85 %
96 %
Gharb-Loukkos
2014 2013
87 %91 %
Groupe2014 2013
75 %74 %
Tadla
EVOLUTION OF HARVESTED AREAS (in ha)
2014 2013
12,784
17,393
Doukkala Gharb-Loukkos BAS 2014 2013
6,546
14,637
Tadla2014 2013
12,62714,604
Moulouya2014 2013
3,1395,622
Gharb-Loukkos CAS2014 2013
9,554
5,574
Groupe BAS2014 2013
35,096
52,256
EVOLUTION OF MECHANICALLY HARVESTED AREAS (in %)
2014 2013
12 %11 %
Tadla
2014 2013
4%7 %
Doukkala
2014 2013
10%5 %
Gharb-Loukkos BAS
2014 2013
71 %
100 %
Moulouya Groupe BAS
2014 2013
13 %
18 %
Groupe CAS
37 %
39%
2014 2013
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REFINING OF IMpORTED RAW SuGAR
The level of production for the refining activity has fallen by -170.6 thousand tons following the improved local production of sugar.
INDUSTRIAL PERFORMANCES
THE REFINING ACTIVITY(in thousand tons)
2014 2013
751.8
922.4
Group COSUMAR SA2014 2013
750.8
894.9
20132014
1
27.5
Subsidiaries
THE REFINERY’S PACKAGED PRODUCTION (In thousand tons)
Loaf2014 2013
289269
Cube - Lump2014 2013
140142
Granulated sugar2014 2013
474
366
Total sugar 2014 2013
903
777
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EXTRACTION FROM SuGAR CROpS
white sugar production has reached 477.7 thousands tons, increasing by +116.6 thousands tons compared with 2013. this clear evolution can be mainly explained by an increase in harvested areas, as well as in farm and extraction yields.
WHITE SUGAR PRODUCTION (in thousands tons)
CANE BEET
processed White sugar extraction processed White sugar extraction2014 2013
576.8
307.6
2014 2013
53.826.6
2014 2013
1996.2
3008.8
2014 2013
307.3451.1
INVESTMENTS (in MAD million)
Subsidiaries2014 2013
102.8103.3
Group2014 2013
460.9
232.1
COSUMAR SA2014 2013
358.1
128.8
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SOCIAL ACCOuNTS (COSuMAR SA)(in MAD million)
CONSOLIDATED ACCOuNTS (in MAD million)
CORPORATE FINANCIALPERFORMANCES
Business Turnover2014 2013
4,736.64,524.1
Operating Result2014 2013
739.9672.2
Financial Result
54.538.3
2014 2013Income
582.3
433.5
2014 2013
EBITDA2014 2013
1,297.01,337.1
Revenue2014 2013
5,975.16,046.0
Equity2014 2013
3,586.03,794.6
Net income, Group share
2014 2013
628.7639.9
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2014 FINANCIAL STATEMENTS
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CONSOLIDATED ACCOUNTS
CONSOLIDATeD BALANCe-SHeeT ASSeTS
CONSOLIDATeD BALANCe-SHeeT LIABILITIeS
ASSETS Dec-14 Dec-13
Goodwill 196.1 196.1
Intangible assets 0.1 0.1
Tangible fixed assets 3,838.1 3,945.0
Investment property 63.7 63.7
Other financial assets 136.4 144.5
- Loans and credits 89.2 97.4
- Assets held for sale 47.1 47.1
Non-current assets 4,234.4 4,349.5
Other financial assets 115.1
- Hedging derivatives 115.1
Stocks and work in progress 1,579.1 1,513.8
Accounts receivables 231.5 245.9
Other receivables 2,033.1 2,398.6
Cash and cash equivalents 90.4 74.5
Current assets 4,049.2 4,232.8
TOTAL ASSETS 8,283.6 8,582.3
LIABILITIES Dec-14 Dec-13
Capital 419.1 419.1
Share and premium 34.6 34.6
Reserves 2,682.6 2,488.8
Net income Group Share 639.9 628.7
equity attributable to ordinary shareholders of the parent company 3,776.2 3,571.2
Minority interests 18.4 14.8
Consolidated Shareholder's equity 3,794.6 3,586.0
Provisions 16.9 31.3
Employee benefits 133.8 175.6
Non-current financial debt 756.8 970.8
- Amounts owed to credit institutions 756.8 970.8
Deferred tax liabilities 600.1 549.5
Other non-current payables 7.3 4.8
Non-current liabilities 1,514.9 1,732.0
Current financial debt 56.4 815.7
- Amounts owed to credit institutions 56.4 778.1
- Hedging derivatives 0 37.6
Current trade payables 2,553.6 2,134.8
Other current payables 364.1 313.7
Current liabilities 2,974.1 3,264.2
TOTAL LIABILITIeS 4,489.0 4,996.2
TOTAL EQUITY AND LIABILITIES 8,283.6 8,582.3
TOTAL CAPITAUX PROPRES ET PASSIFS 8 283,6 8 582,3
(in MAD millions)
(in MAD millions)
CONSOLIDATED ACCOUNTS
(in MAD millions)
(in MAD millions)
CONSOLIDATeD INCOMe STATeMeNT
Dec-14 Dec-13
Revenue 6,046.0 5,975.1
Other operating revenue 3,350.1 3,567.0
Revenues from ordinary activities 9,396.2 9,542.1
Purchases (7,147.2) (7,342.2)
Other external expenses (477.9) (450.4)
Staff expenses (396.9) (420.9)
Taxes (37.1) (31.5)
Depreciation and operating provisions (348.6) (321.3)
Other net operating revenues and expenses 13.3 17.5
Current operating expenses (8,394.4) (8,548.8)
Current operating result 1,001.8 993.2
Other operating income and expenses (24.7) 0.8
Income from operating activities 977.1 994.1
Interest income 13.8 10.6
Interest expenses (68.1) (93.9)
Other financial income and expenses 0.8 12
Financial result (53.5) (71.3)
Profit before tax from consolidated companies 923.6 922.8
Current taxes (228.4) (229.7)
Deferred taxes (50.5) (53.7)
Net profit of consolidated companies 644.7 639.4
Income from equity affiliates
Net income from continuing operations 644.7 639.4
Income from discontinued operations (1.1) (10.3)
Income from the consolidated Group 643.6 629.1
Minority interests (3.7) (0.4)
Net income - Group Share 639.9 628.7
Income from continuing operations 644,7 639,4
Income from discontinued operations (1,1) (10,3)
Income from the Consolidated group 643,6 629,1
Minority interests (3,7) (0,4)
Net income – Group Share 639,9 628,7
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CONSOLIDATeD STATeMeNT Of COMPReHeNSIve INCOMe
Dec-14 Dec-13
Profit of the year 643.6 629.1
Profits and losses on revaluation of aFs 0 0
actuarial gains and losses on defined benefit plans (7.5) 9.0
Income tax on other comprehensive income 0 0
global Income 636.1 638
Minority interests (3.7) (0.4)
Global Net Profit - Group Share 632.4 637.7
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CONSOLIDATED ACCOUNTS
STATeMeNT Of CHANgeS IN eQUITY(in MAD millions)
EquityShare and
emergepremium
UndistributedVariation for
the year inactuarial
Total Groupshare
Minorityinterests
Total
On 1 January 2013 419.1 34.6 2,896.8 0 3,350.5 15.8 3,366.2
effects on changes in accounting
method / error correction -2.3 4.4 2.2 0.1 2.2
Restated amounts at opening 419.1 34.6 2,894.5 4.4 3,352.6 15.8 3,368.4
Change in CP for 2013
Profit for the period 628.7 628.7 0.4 629.1
Profits & losses from revaluation
of AfS9.0 9 0 9
Comprehensive income for the
year0 0 628.7 9.0 637.7 0.4 638
Dividends paid -419.1 -419.1 -1.4 -420.5Total transactions
with shareholders0 0 -419.1 0 -419.1 -1.4 -420.5
On December 31, 2013 419.1 34.6 3,104.1 13.4 3,571.2 14.8 3,586.0
On 1 January 2014 419.1 34.6 3,104.1 13.4 3,571.2 14.8 3,586.0effects on changes in accounting
method / error correction0 0 0
N-1 error corrections : 0 0 0
Restated amounts at opening 419.1 34.6 3,104.1 13.4 3,571.2 14.8 3,586.0
Change in CP for 2014
profit for the period 639.9 639.9 3.7 643.6
Actuarial gains / losses -7.5 -7.5 0 -7.5
Other elements of
comprehensive income
Total comprehensive income
for the year0 0 639.9 -7.5 632.4 3.7 636.1
Dividends paid -427.5 -427.5 -0.1 -427.6
Other transactions with
shareholders0 0 0 0
Total transactions
with shareholders0 0 -427.5 0 -427.5 -0.1 -427.6
On December 31, 2014 419.1 34.6 3,316.5 5.9 3,776.2 18.4 3,794.6
CONSOLIDATED ACCOUNTS
STATeMeNT Of CONSOLIDATeD CASH fLOw(in MAD millions)
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In MAD millions Dec-14 Dec-13
Net profit from consolidated companies 643.6 629.1
Adjustments for
Depreciation and amortization, impairment losses 274.2 254.0
Other adjustments (107.6) (16.6)
Cash flow after cost of net financial debt and tax 810.1 866.5
Elimination of the charge (income) taxes 279.0 283.4
Elimination of cost of net financial debt 54.2 83.4
Cash flow before cost of net financial debt tax 1,143.3 1,233.2
Impact of the WCR variation 626.0 (102.4)
Deferred taxes 0 0
Paid taxes (228.4) (229.7)
formating net cash provided by operating activities 1,540.9 901.1
Acquisition of tangible and intangible assets (232.1) (460.9)
Disposals of tangible and intangible assets 108.9 0.7
Other flows 13.9 19.9
Net cash used in investing activities (109.3) (440.3)
Borrowings 5 901.5
Repayment of loans (219) (67)
Dividends paid to shareholders of the parent company (427.5) (419.1)
Dividends paid to minority shareholders of subsidiaries (0.1) (1.4)
Cost of net debt (54.2) (83.4)
Change in associates account 1.7 (292.4)
Net cash from financing activities (694.1) 38.2
VARIATION OF CASH AND CASH EQUIVALENTS 737.5 499.1
Net cash and cash equivalents at opening (703.6) (1,202.6)
Net cash and cash equivalents at closure 33.9 (703.6)
VARIATION OF CASH AND CASH EQUIVALENTS 737.5 499.1
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CONSOLIDATED ACCOUNTSSUMMARY Of NOTeS TO THe CONSOLIDATeD ACCOUNTS
NOTE 1. ACCOUNTING RULES AND METHODS
1.1. Accounting standards
Pursuant to opinion No. 5 of the National Accounting Council (CNC), 26/05/2005 and in accordance with the provisions of Article 6, paragraph 6.3 of Circular No. 07/09 of Securities Ethics Council (CDVM) of 15 July 2009, the consolidated financial statements of COSUMAR Group are prepared in accordance with international accounting standards adopted in the European Union on 31 December 2012 and as published on that date.
The International accounting standards include IFRS (International Financial Reporting Standards), IAS (International Accounting Standards) and their SIC and IFRIC interpretations (Standards Interpretations Committee and International Financial Reporting Interpretations Committee).
The Group regularly monitors the latest publications of the IASB and IFRIC.
In 2013, the Group adopted the normative changes provided for by the IFRS repository regarding the IAS 19 revised standard, the evolution of which is the abolition of the corridor rule for the recognition of actuarial gains and losses. The latter are now fully recognized the year following their identification against other comprehensive income and the use of a generational mortality table.
Thus, in 2010, the Group has applied to the financial statements present in the revised IFRS 3 «Business combination», the main provisions of which is that Goodwill is only determined on the date of the takeover and that, from 2010, it was no longer possible to adjust it beyond the evaluation period. Now, additional acquisitions after majority takeover do not change the amount of Goodwill.
In 2009, the COSUMAR Group opted, as part of the IAS 1 standard, for the presentation of the comprehensive income in two Statements:
• Statement detailing components of income (statement of income);
• Statement that starts with the income and detailing other components of comprehensive income (statement of com-prehensive income).
1.2. Principles of consolidation
The consolidated accounts are prepared under the historical cost convention except for certain categories of assets and liabilities in accordance with the principles embodied in IFRS.
All COSUMAR Group companies are consolidated from the annual accounts for the financial year ended 31 December 2014.
In accordance with IFRS, there is no exemption to the Group’s perimeter of consolidation. The insignificant shareholdings are treated as AFS securities.
1.3. Tangible capital assets
Specific rule in the first adoption:
As part of the first application of IFRS standards and in accordance with the provisions of IFRS 1, the company has conducted, on January 1, 2006, the fair-value measurements of all of its intangible and tangible fixed assets, and has retained that value as deemed cost. Fair value measurements were conducted by independent experts.
Applicable principles as from January 1, 2006:
In accordance with IAS 16, tangible fixed assets are recorded at the historical cost or original manufacturing cost, reduced by the accumulated depreciation and, where applicable, by any accumulated impairment losses. Depreciation is charged based on the useful life.
The amortization method chosen by the Group is the linear method.
1.4. Stocks
Inventories are valued at lower cost or net realizable value.
The cost reflects the cost of procurement or production costs incurred to bring inventories to the state and the place where they are. These include, based on a normal level of activity, direct and indirect costs of production. Production costs are generally calculated using the weighted average cost method.
The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs to complete products and estimated costs necessary to complete the sale.
1.5. employee benefits
The Group’s obligations under the plans for health coverage and defined benefit at retirement allowances are determined in accordance with IAS 19, based on the method of projected unit credit, taking into account the specific economic conditions in Morocco.
The commitments are covered by provisions recorded in the balance sheet as to the acquisition of rights by employees.
The retirement benefits are also subject to a provision. The latter is calculated taking into account the likelihood of the presence of employees in the Group on their date of retirement. This provision is updated at each closure.
NOTE 2. SCOPE OF CONSOLIDATION AT 31 DECEMBRE 2014
Company Ownership % equity %Consolidation
MethodCOSUMAR (parent) 100,00% 100,00% Full Consolidation
SUCRAFOR 90,96% 90,96% Full Consolidation
SUNABEL 99,15% 99,15% Full Consolidation
SURAC 100,00% 100,00% Full Consolidation
SUTA 99,84% 99,84% Full Consolidation
To the Shareholders of COSUMAR S.A. 8, Rue El Mouatamid Bnou Abbad Casablanca SUMMARY OF THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31st, 2014 This is a free translation into English of the statutory audit report issued in French and it is provided solely for the convenience of English-speaking users.
We have audited the accompanying consolidated financial statements of COSUMAR S.A. and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at December 31st, 2014, the consolidated statement of profit and loss, the consolidated statement of other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. These consolidated statements show a net consolidated equity of MAD 3.794,6 millions, including a net consolidated profit of MAD 643,6 millions.
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Moroccan Auditing Standards.
In our opinion, the consolidated financial statements, mentioned in the first paragraph, present fairly, in all material respects, the financial position of the Group as at December 31st, 2014 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Casablanca, March 27th, 2015
The statutory auditors
ERNST & YOUNG PRICE WATERHOUSE French original signed by
French original signed by
Abdelmejid FAIZ Aziz BIDAH Partner Partner
37, Bd Abdellatif Ben Kaddour 20 050 Casablanca Maroc
Price Waterhouse 101, Bd Massira Al Khadra 20 100 Casablanca Maroc
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SOCIAL ACCOUNTS (COSUMAR SA)
BALANCe SHeeT ASSeTS
BALANCE SHEET (Assets) Fiscal Year 1/01/2014 to 31/12/2014
ASSETSFISCAL YEAR
PREVIOUS YEAR
Gross Amortizationsand provisions
Net Net
AS
SET
S F
IXED
IMMOBILIZATION IN NON-vALUe (A) 11,861,089.15 11,097,438.37 763,650.78 2,852,697.04
• Preliminary cost - -
• Costs to be distributed over several fiscal years 11,861,089.15 11,097,438.37 763,650.78 2,852,697.04
• Redemption premiums - -
INTANgIBLe ASSeTS (B) 19,239,434.00 2,776,433.00 16,463,001.00 16,463,001.00
• Research and development capital - -
• Patents,trademarks, similar rights and assets - -
• Goodwill 19,239,434.00 2,776,433.00 16,463,001.00 16,463,001.00
• Other intangible assets - -
TANgIBLe CAPITAL ASSeTS (C) 4,563,283,828.31 3,041,508,482.38 1,521,775,345.93 1,659,590,286.53
• Transport equipment 107,700,774.28 - 107,700,774.28 107,700,774.28
• Lands 571,642,373.22 307,168,088.69 264,474,284.53 278,792,757.01
• Constructions 3,501,167,849.46 2,494,318,971.92 1,006,848,877.54 1,169,605,440.79
• Technical facilities,machinery and equipment 29,678,505.14 26,140,879.26 3,537,625.88 3,594,579.57
• Office equipment, furniture and fittings 249,753,482.24 213,880,542.51 35,872,939.73 39,736,909.54
• Other tangible assets -
• In progress current tangible assets 103,340,843.97 103,340,843.97 60,159,825.34
fINANCIAL ASSeTS (D) 1,633,050,734.63 40,200.00,,, 1,633,010,534.63 1,635,520,302.27
• Receivables secured loans 11,518,602.20 - 11,518,602.20 14,028,369.84
• Other financial receivables 1,284,447.22 - 1,284,447.22 1,284,447.22
• Equity securities 1,620,247,685.21 40,200.00 1,620,207,485.21 1,620,207,485.21
• Other equity securities - -
CONveRSION LOSSeS (e) - - -
• Reduction of non-performing loans -
• Increase of financial debts -
TOTAL I (A+B+C+D+e) 6,227,435,086.09 3,055,422,553.75 3,172,012,532.34 3,314,426,286.84
AS
SET
S C
UR
REN
T
STOCKS (f) 1,008,760,013.28 21,453,960.70 987,306,052.58 1,089,674,585.19
• Goods - -
• Materials & consumables 441,227,085.31 21,328,470.72 419,898,614.59 456,544,252.19
• Goods in process - - - -
• Intermediates & residual products 10,537,371.08 - 10,537,371.08 20,718,919.61
• Finished products 556,995,556.89 125,489.98 556,870,066.91 612,411,413.39
OPeRATINg ReCeIvABLeS (g) 1,848,550,813.64 125,347,511.05 1,723,203,302.59 1,817,692,192.89
• Receivables from suppliers, advances & deposits 10,230,919.02 10,230,919.02 10,275,268.16
• Customers & related accounts 213,420,984.05 3,491,341.74 209,929,642.31 228,593,331.45
• Personnels 21,649,693.60 - 21,649,693.60 24,477,054.54
• State 911,094,916.49 911,094,916.49 1,163,018,841.91
• Accounts of Shareholders 337,000,000.00 - 337,000,000.00 7,900,000.00
• Other receivables 345,338,747.29 121,856,169.31 223,482,577.98 372,148,557.00
• Accruals and deferred income 9,815,553.19 9,815,553.19 11,279,139.83
INveSTMeNT SeCURITIeS (H) 28,404,158.46 28,404,158.46
exCHANge RATe DIffeReNCeS ON ASSeTS (I) - - 217,530.44
(Current items) - - 217,530.44
TOTAL II (f+g+H+I) 2,885,714,985.38 146,801,471.75 2,738,913,513.63 2,907,584,308.52
CA
SH
FLO
W CASH - ASSeTS 31,092,130.20 - 31,092,130.20 39,677,331.57
• Cheques & bills awaiting collection - - 11,233,443.32
• Bank, TG & CCP 21,092,688.66 - 21,092,688.66 26,792,364.21
• Cash, imprest accounts & letters of credits 9,999,441.54 9,999,441.54 1,651,524.04
TOTAL III 31,092,130.20 31,092,130.20 39,677,331.57
GENERAL TOTAL I + II + III 9,144,242,201.67 3,202,224,025.50 5,942,018,176.17 6,261,687,926.93
(in MAD)
SOCIAL ACCOUNTS
BALANCe SHeeT LIABILITIeS
BALANCE SHEET (Liabilities) Fiscal year from 1st/01/2014 to 31/12/2014
LIABILITIES FISCAL YEARPREVIOUS
YEAR
FIN
AN
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NEN
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eQUITY 2,715,992,834.23 2,709,935,831.33
• Social or directoral Capital (1) 419,105,700.00 419,105,700.00
• less shareholders, uncalled subscribed capital
Called-up capital
of which paid .......................................
• Additional paid-in capital, merger or other premiums 34,564,369.70 34,564,369.70
• Revaluation differences - -
• Legal reserves 41,910,570.00 41,910,570.00
• Other reserves 1,786,503,925.82 1,631,503,925.82
• Retained earnings (2) 363,451.81 598,634.25
• Net results pending assignment (2) - -
• Net result for the year (2) 433,544,816.90 582,252,631.56
TOTAL EQUITY (A) 2,715,992,834.23 2,709,935,831.33
• QUASI-eQUITY (B) 478,645,065.45 477,522,833.92
• Investment grants - -
• Regulated provisions 478,645,065.45 477,522,833.92
fINANCINg LIABILITIeS (C) 330,000,000.00 440,000,000.00
• Bonds issues - -
• Other funding liabilities 330,000,000.00 440,000,000.00
TeRM PROvISIONS fOR CONTINgeNCIeS AND LOSSeS (D) 3,058,116.24 52,653,132.73
• Provisions for contingencies 3,058,116.24 52,653,132.73
• Provisions for losses - -
LIABILITIeS UNDeR CONveRSION gAINS (e)
• Increase in non-performing loans - -
• Decrease in financing liabilities - -
TOTAL I (A+B+C+D+E) 3,527,696,015.92 3,680,111,797.98
PAS
SIF
CIR
CU
L
DEBTS FROM CURRENT LIABILITIES (F) 2,405,127,395.57 2,183,799,083.67
• Suppliers & related accounts 2,158,725,114.04 1,969,838,421.70
• Creditor customers, advance payments & deposits 5,596,189.15 7,524,696.00
• Staff 31,439,206.09 33,943,105.05
• Social organizations 13,631,362.45 11,978,476.80
• State 37,707,048.87 34,540,087.66
• Accounts of Shareholders 47,256,355.36 43,391,879.36
• Other creditors 22,123,894.04 38,570,144.08
• Accruals and deferred income 88,648,225.57 44,012,273.02
OTHeR PROvISIONS fOR CONTINgeNCIeS AND LOSSeS (g) - 217,530.44
LIABILITIeS UNDeR CONveRSION gAINS (H) (Circulating items) 1,156,305.43 2,576,881.34
TOTAL II (F+G+H) 2,406,283,701.00 2,186,593,495.45
TR
ESO
R
CASH - LIABILITIeS 8,038,459.25 394,982,633.50
• Yielding discount credits - -
• Cash credits - -
• Banks of regularization 8,038,459.25 394,982,633.50
TOTAL III 8,038,459.25 394,982,633.50
GRAND TOTAL I + II + III 5,942,018,176.17 6,261,687,926.93(1) Owing Directoral capital borrowing(2) Profit (+),deficit (-)
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SOCIAL ACCOUNTS
ACCOUNTS Of ReveNUeS AND exPeNSeS (ex TAx)
ACCOUNTS OF REVENUES AND EXPENSES (Ex Tax) Fiscal Year 1/01/2014 to 31/12/2014
OPERATIONS TOTALS FORTHE YEAR
3 = 1 + 2
TOTALS FROMPREVIOUS
FINANCIAL YEAR4
Operations Specific to year
1
Concerningprevious years
2
OP
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TIN
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I - OPeRATINg INCOMe 7,006,551,905.09 7,006,551,905.09 7,665,509,229.02• Sale of goods (in their current state) - - - -• Sale of produced goods & services 4,524,071,180.50 - 4,524,071,180.50 4,736,569,986.03Turnover 4,524,071,180.50 - 4,524,071,180.50 4,736,569,986.03• Variation of product stocks (1) -65,995,642.03 -65,995,642.03 234,798,765.49• In-house produced assets - - - -• Operating grants 2,450,691,130.04 - 2,450,691,130.04 2,606,185,725.71• OPERATION • Other operating income 66,881,961.19 - ,66,881,961.19 54,640,705.84• Operating reversals: expense reclassifications 30,903,275.39 30,903,275.39 33,314,045.95TOTAL I 7,006,259,677.98 7,006,551,905.09 7,665,509,229.02II - OPeRATINg exPeNSeS 6,347,465,145.48 -13,102,835.72 6,334,362,309.76 6,925,644,346.08• Resold procurements (2) of goods - - - -• Cost of supplies (2) and consumable materials 5,407,435,969.62 -13,102,835.72 5,394,333,133.90 6,012,878,326.57• Other external charges 315,316,742.61 315,316,742.61 298,333,843.47• Taxes & fees 16,389,269.15 16,389,269.15 13,317,159.47• Staff expenses 319,591,011.95 319,591,011.95 328,034,004.18• Other operating expenses 640,480.00 - 640,480.00 1,524,594.43• Operating allocations 288,091,672.15 - 288,091,672.15 271,556,417.96TOTAL II 6,347,465,145.48 -13,102,835.72 6,334,362,309.76 6,925,644,346.08III - OPeRATINg ReSULT (I - II) 672,189,595.33 739,864,882.94
FIN
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Iv - fINANCIAL ReveNUeS 66,090,051.57 - 66,090,051.57 99,766,353.96• Income From equity investment and other securities 51,186,016.00 - 51,186,016.00 90,959,935.00• Exchange gains 3,726,051.24 - 3,726,051.24 6,686,179.57• Interests & other financial products 10,946,206.02 - 10,946,206.02 2,001,580.74• Financial reversals: expense reclassifications 231,778.31 - 231,778.31 118,658.65TOTAL IV 66,090,051.57 - 66,090,051.57 99,766,353.96v - fINANCIAL exPeNSeS 27,798,993.53 - 27,798,993.53 45,279,369.65• Interest expenses 26,069,388.25 - 26,069,388.25 44,810,350.64• Exchange losses 1,729,605.28 - 1,729,605.28 251,488.57• Other financial charges - - - -• Financial allocations - - - 217,530.44TOTAL V 27,798,993.53 27,798,993.53 ,45,279,369.65vI - fINANCIAL ReSULT (Iv - v) 38,291,058.04 54,486,984.31vII - CURReNT ReSULT (III - vI) 710,480,653.37 794,351,867.25
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vIII - NON CURReNT ReveNUeS 151,852,973.01 - 151,852,973.01 127,202,430.17• Revenue from diposals of non-current assets 155,000.00 - 155,000.00 352,000.00• Balancing subsidy - -• Reversals on investment grants - -• Other non-current income 12,526,067.07 - 12,526,067.07 1,432,987.46• Non-current reversals: expense reclassifications 139,171,905.94 - 139,171,905.94 125,417,442.71TOTAL VIII 151,852,973.01 - 151,852,973.01,,, 127,202,430.17Ix - NON CURReNT exPeNSeS 282,508,536.48 - 282,508,536.48 142,799,975.86• Sold assets net value 147,259.90 - 147,259.90 -• Grants awarded - -• Other non-current expenses 78,709,815.84 - 78,709,815.84 48,524,501.68• Non-current expenses to depreciation, amortization and provisions 203,651,460.74 - 203,651,460.74 94,275,474.18TOTAL IX 282,508,536.48 -,,, 282,508,536.48 142,799,975.86x - NON CURReNT ReSULT (vIII - Ix) -130,655,563.47 -15,597,545.69xI - PRe-TAx ReSULT (vII + x) 579,825,089.90 778,754,321.56xII - TAxeS ON ReSULTS 146,280,273.00 146,280,273.00 196,501,690.00xIII - NeT ReSULT (xI - xII) 433,544,816.90 582,252,631.56
(1) Inventory change: final stock - initial stock; increase (+); decrease (-)(2) Resold or consumed purchases: purchases - inventory change.
xIv - TOTAL ReveNUeS (I + Iv + vIII) 7,224,494,929.67 7,892,478,013.15xv - TOTAL LIABILITIeS (II + v + Ix + xII) 6,790,950,112.77 7,310,225,381.59xvI - NeT ReSULT (xIv - xv) 433,544,816.90 582,252,631.56
(in MAD)
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37, Bd Abdellatif Ben Kaddour 20 050 Casablanca Maroc
Price Waterhouse 101, Bd Massira Al Khadra 20 100 Casablanca Maroc
To the Shareholders of COSUMAR S.A. 8, Rue El Mouatamid Bnou Abbad Casablanca SUMMARY OF THE STATUTORY AUDIT REPORT AS AT DECEMBER 31st, 2014 This is a free translation into English of the statutory audit report issued in French and it is provided solely for the convenience of English-speaking users. In accordance with our assignment as statutory auditors by the Shareholders decision, we present you hereby our report regarding fiscal year 2014. We have audited the accompanying financial statements of COSUMAR S.A. as at December 31st, 2014 including the balance sheet, the income statement, the statement of management accounts, the cash flow statement and the notes to the financial statements for the year then ended, which show a net equity of MAD 3.194.637.899,68 including a net profit of MAD 433.544.816,90. Management is responsible for the preparation and fair presentation of these financial statements in accordance with Moroccan GAAP.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Moroccan standards on auditing.
We certify that the above-mentioned financial statements give a true and fair view, in all material respects, of the assets and liabilities and of the financial position of COSUMAR S.A. as at December 31st, 2014 and of the results of its operations for the year then ended in accordance with accounting principles generally accepted in Morocco. Specific verifications and information We have also performed the specific controls required by the law and made sure that the information provided in the management report to be presented to the Shareholders are consistent with the financial statements of the company. Casablanca, March 27th, 2015
The statutory auditors ERNST & YOUNG PRICE WATERHOUSE French original signed by French original signed by Abdelmejid FAIZ Aziz BIDAH Partner Partner
SPECIAL REPORT OF AUDITORS FISCAL YEAR JANUARY 1st TO DECEMBER 31st 2014
In our capacity as auditors of your company, we present our report on the regulated agreements in accordance with the provisions of articles 56 to 59 of law 17-95 as amended and supplemented by Act 20-05 and its implementing decree.
It is our responsibility to submit to you the main characteristics and provisions of the agreements of which we were informed by the Chairman of the Board of directors or which we discovered during our mission, without commenting as to their usefulness or appropriateness, or looking for the existence of other agreements. It is your responsibility according to the law above, to comment as to their approval.
We performed the procedures that we deemed necessary under the auditing standards in Morocco. These procedures included assessment of the adequacy of the information we were provided with and with the basic documents it is taken from.
1. AGREEMENTS ENTERED INTO DURING THE YEAR
1.1. Agreements previously authorized by your Board of Directors.
1.1.1 Agreement to provide packaging services between COSUMAR and SUNABeL (written agreement)
Director involved: Mr. Mohammed FIKRAT is CeO of COSUMAR and SUNABeL.
Nature and purpose of agreement: this agreement provides funds for packaging sugar between COSUMAR and SUNABeL as part of the optimization of production facilities.
Main terms:effective date: 2014Compensation: MAD 321 (excl. VAT)/T for 1 kg MAD 250 (excl. VAT)/T for 2 kg
The amount of provision of inventories recorded under year 2014 totalled KMAD 5,473, disbursed amounting to KMAD 1,421.
1.1.2 Agreement to provide packaging and refining services between COSUMAR and SURAC (written agreement)
Director involved: Mr. Mohammed FIKRAT is the CeO of COSUMAR and SURAC.
Nature and purpose of agreement: This agreement provides for raw sugar refining and packaging services between COSUMAR and SUNABeL as part of the optimization of production facilities.
Main terms:effective date: 2014Compensation: -MAD 600 (excl. VAT)/T for 50kg -MAD 850 (excl. VAT)/T for 2kg -MAD 921 (excl. VAT)/T for 1kg
The amount of provisions of inventories recorded under year 2014 totalled KMAD 576, disbursed amounting to KMAD 34.
1.1.3. Agreement to provide packaging services between COSUMAR and SURAC (written agree-ment)
Director involved: Mr. Mohammed FIKRAT is CeO of COSUMAR and SURAC.
Nature and purpose of agreement: This agreement provides for sugar packaging services between COSUMAR and SURAC as part of the optimization of production facilities.
effective date: 2014Compensation: -MAD 321 (excl. VAT)/T for 1kg-MAD 250 (excl. VAT)/T for 2kg-MAD 830 (excl. VAT)/T for the cube and the lump
The amount of provisions of inventories recorded under year 2014 totalled KMAD 3,289, disbursed amounting to KMAD 3,269.
1.1.4 Agreement to provide packaging between COSUMAR and SUCRUNION (written agreement)
Director involved: Mr. Mohammed FIKRAT is CeO of COSUMAR and SUCRUNION.
Nature and purpose of agreement: This agreement provides for sugar packaging services between COSUMAR and SUCRUNION as part of the optimization of production facilities.
effective date: 2014Compensation: -MAD 376 (excl. VAT)/T for 1kg and 2kg
The amount of provisions of inventories recorded under year 2014 totalled KMAD 386, fully disbursed.
1.2. Agreements not previously authorized by your Board of Directors.
None
2. AGREEMENTS ENTERED INTO DURING PREVIOUS YEARS AND THE EXECUTION OF WHICH CONTINUED DURING THE YEAR
2.1. Services’ agreement between COSUMAR and WILMAR
Director involved: Mr. Jean-Luc BOHBOT serves on the board of both WILMAR and COSUMAR.
Nature and purpose of agreement: Under this agreement, WILMAR provides COSUMAR with services in the area of strategy, trade-related technical assistance, investment assistance, and financial assistance.
Main terms:
• effective date: 16/10/2013• Duration: renewable by tacit agreement• Compensation: 0.425% of turnover capped at MMAD 12.5.
The amount of provision of inventories recorded under year 2014 totalled MMAD 12,525, fully disbursed.
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2.2. Services’ agreement between COSUMAR and SNI
Director involved: Mr. Hassan BOUHeMOU was CeO of SNI and Administrator of COSUMAR until January 14th 2014.
Nature and purpose of agreement: Under this agreement, SNI provides COSUMAR with services in the areas of management control, investment assistance, financial assistance, human resources management, marketing, computer and audit assistance.
Main terms:• effective date: 16/10/2013• Compensation: 0.425% of turnover capped at MMAD 12.5.
The amount of provision of inventories recorded under year 2014 totalled MMAD 1,022, fully disbursed.
2.3. Cash management agreement between CELACO and COSUMAR (written agreement)
Director involved: Mr. Mohammed FIKRAT is CeO of COSUMAR and Administrator of CeLACO.
Nature and purpose of agreement: This agreement deals with the optimization of cash flows through a current account.
Main terms:• effective date: January 2004• Duration: One year renewable by tacit agreement• Compensation: Annual rate of 2.5%
The amount of provision of inventories recorded under year 2014 is nil.
2.4. Cash management agreement between COSUMAR and SURAC, SUTA, SUNABEL and SUCRA-FOR Corporations (written agreement)
Director involved : Mr. Mohammed FIKRAT is CeO of COSUMAR, SUNABeL, SURAC, SUCRATOR and SUTA
Nature and purpose of agreement: This agreement provides for the centralization of cash operations in order to optimize both the use of credit and the investment of surplus cash.
Main terms: • effective date: 2006• Duration: one year renewable by tacit agreement• Compensation: an annual rate of 2.5% for accounts receivable and an annual rate of 5% for accounts payable.
During fiscal year 2014, the remuneration of accounts receivable of SURAC, SUTA, SUCRAFOR and SUNABeL generated KMAD 7,192 of revenues for COSUMAR, which were cashed amounting to KMAD 4,381.
The remuneration of SURAC’s accounts payable generated KMAD 5 of expenses for COSUMAR, not yet disbursed.
2.5. Services’ agreement between COSUMAR and SUTA, SUNABEL, SURAC and SUCRAFOR Corpo-rations (written agreement)
Director involved : Mr. Mohammed Fikrat is CeO of COSUMAR, SUNABeL, SURAC, SUCRAFOR and SUTA
Nature and purpose of agreement : This agreement provides for services delivered to SUTA, SUNABeL, SURAC and SUCRAFOR by COSUMAR in the areas of management control, investment assistance, financial assistance, human resources management, marketing, sales support, computer assistance and audit.
Main terms:• effective date: 2006• Duration: one year renewable by tacit agreement• Compensation: compensations are set at 0.425% of turnover and MAD 40 per ton of sugar sold
The amount of provision of inventories recorded under year 2014 totalled KMAD 17.942, which were cashed amounting to KMAD 12,322.
2.6. Cash management agreement between COSUMAR and SUCRUNION (written agreement)
Director involved: Mr. Mohammed FIKRAT is CeO of COSUMAR and SUCRUNION
Nature and purpose of agreement: This agreement provides for the centralization of cash management in order to optimize both the use of credit and the investment of surplus cash.
Main terms:• effective date: 2007• Duration: one year renewable by tacit agreement• Compensation: an annual rate of 2.5% for accounts receivable and an annual rate of 5% for accounts payable.
The amount of provision of inventories recorded under year 2014 totalled KMAD 399, which were cashed amounting to KMAD 285.
2.7. Services’ agreement between COSUMAR and SUCRUNION (written agreement)
Director involved: Mr. Mohammed FIKRAT is CeO of COSUMAR and SUCRUNION
Nature and purpose of agreement: This agreement provides for services delivered to SUCRUNION Corporation in the areas of management control, investment assistance, financial assistance, human resources management, marketing, sales support, computer assistance and audit.
Main terms:• effective date: April 2007• Duration: one year renewable by tacit agreement• Compensation: 0.85% of total turnover and MAD 35 per ton of sugar sold.
The amount of provision of inventories recorded under year 2014 totalled KMAD 517, cashed amounting to KMAD 370.
Casablanca, March 27th 2015.Auditors
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FIRST RESOLUTION
The General Assembly, having heard reports of the Board of
Directors and the Auditors, approves the budget and accounts
for the fiscal year 2014 as presented, resulting in net profit of MAD
433,544,816.90
It also approves the transactions reflected in these accounts or
summarized in these reports.
SECOND RESOLUTION
As a result of adopting the above resolution, the General Assembly
gives the directors and statutory auditors their discharge from
the execution of their mandates for 2014 fiscal year.
THIRD RESOLUTION
The General Assembly, after having heard the special report of
auditors on the agreements referred to in article 56 of Act 17-
95, as amended and completed by Act 20-05, approves the
operations concluded or performed during the fiscal year.
FOURTH RESOLUTION
The General Assembly approves the following allocation of results:
Net profit MAD 433,544,816.90
Retained from previous years (+) MAD 363,451.81
---------------------------
Balance MAD 433,908,268.71
Dividend (-) MAD
431,678,871.00
----------------------------
Balance MAD 2,229,397.71
It therefore decides to distribute a total dividend of MAD
431,678,871.00, that is a unit dividend of MAD 10.3 per share and
allocate the balance carried forward not distributed, i.e. MAD
2,229,397.71.
The dividend will be paid as prescribed by the regulations in force
as of July, 15th 2015.
FIFTH RESOLUTION
The shareholder’s meeting takes note of the resignation of Mr.
KUOK Khoon Hong as administrator and gives him full discharge
from his management.
SIXTH RESOLUTION
The shareholder’s meeting ratifies the cooptation of Mr. Jean-
Vincent Piot as administrator, in place of Mr. KUOK Khoon Hong,
for the remainder of his predecessor’s term of office, i.e. until the
Ordinary Shareholder’s Meeting convened to vote on the financial
statements for fiscal year 2018.
SEVENTH RESOLUTION
The shareholder’s meeting takes note that, as of now, the
Permanent Representative of Wafa Assurance shall be Mr. Ali
HARRAJ.
EIGHTH RESOLUTION
The shareholder’s meeting confers on the holder of a copy
or an extract of the minutes of the present meeting all powers
necessary in order to fulfill all legal formalities.
RESOLUTIONSFISCAL yeAR 2014
8, rue Mouatamid Ibnou abbad
BP. 3098 - 20 300 Casablanca - Maroc
tél.: +212 529 02 83 00 - Fax : +212 522 24 10 71
www.cosumar.co.ma