National Investment Corporation of Cameroon
P.O. Box 423 Yaounde Tel: (237) 22 22 44 22 Annual Report 2005 Fax: (237) 22 23 13 32 [email protected] www.sni.cm
NNoouuss ccoonnssttrruuiissoonnss ddeemmaaiinn WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c SNI: Key Figures in 2005
Equity Capital 22 billions FCFA About 41.7 millions USD
Portfolio 30 enterprises operating normally Primary sector: 5 Secondary sector: 14 Tertiary sector: 11 2005 Budget Income: 17 093 millions Francs CFA (about 34.6 millions dollars) Expenditure: 15 098 million Francs CFA (about 28.6 million dollars)
Balance sheet total 34 612 165 830 Francs CFA About 65 740 000 USD Net Profit 823 493 970 FCFA About 1 564 000 USD
Turnover 6 251 712 674 FCFA About 11 874 000 USD
Accrued Net Investment 366 748 000 000 Francs CFA About 696 577 000 USD
Portfolio Yield Gross: 20.09% Net: 43 % DRM, G2 Affiliate Tél: (237) 22 21 25 86 Affiliate DRM, G2 WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c Cameroon / Cameroun
Independence / Independance: January 1, 1960 Head of State / Chef de l'Etat : H.E. Paul BIYA Surface / AreaSuperficie: 475 402 m2
Population / Population : 17,100 millions inhabitants (estimation 2005)* Projections 2050 / Projection 2050 : 24.9 millions inhabitants Population growth / Croissance démographique : 2.1 % Population under 15 years / Population de -15 ans : 42.4 % Urban population / Population urbaine : 50.6 % Literacy rate / Alphabétisation : 67 .9 % Enrolment / Scolarisation : 56 % Human Development Index/Indice de développement humain (2004) IDH/HDI : 0.501 Rank / Rang : 141/177 Languages / Langues: French/Français, English/Anglais
Currency/Monnaie : FRANC CFA Exchange rate/Parité: 1 € = 655.957 F CFA 1 $ = 526,5 F CFA Source : Per capita income/RNB par habitant : 984 $/hab. INS (National Statistics Institute of Cameroon) Inflation / Inflation : 2% Economic and Financial Report (2007 Finance Law) Gross domestic investment/Investissement intérieur brut: 2005 BEAC situational report 2005 World Bank Report 19.2 % du PIB/GDP : 8 901 000 millions F CFA (about 16 906 millions dollars) Foreign Direct Investment / Investissements directs étrangers / : 215 millions $ Exports / Exportations : 1 509 200 millions F CFA (about 2 866 millions $) Imports / Importations : 1 524 200 millions F CFA (about 2 894 millions $)
Main sources of revenue/Principales ressources : oil / Pétrole, timber / bois, cotton / coton, coffee/ café, cocoa / cacao, palm oil / huile de palme, banana / banane, rubber / caoutchouc, etc WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c TABLE OF CONTENTS
ORGANISATIONAL STRUCTURE 05
MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS 09
NATIONAL AND INTERNATIONAL ENVIRONMENT 10
National Context International Economic Environment
MISSIONS OF THE NATIONAL INVESTMENT CORPORATION (SNI) 15
SNI: Industrial promotion, support and financing SNI: Implementation of Government's industrialisation policy
POLICIES AND PROGRAMMES OF SNI'S INTERVENTION 16
Policies Programmes; Resources and tools used in its interventions
FINANCIAL STATEMENT 21
Income Statement; Balance sheet
PORTFOLIO OF ENTERPRISES 28 WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 4 MANAGEMENT STRUCTURE Structure Organisationnelle
Supervisory Authority / Tutelle
Ministry of Industry, Mines and Technological Development Ministère de l'Industrie, des Mines et du Développement Technologique Board of Directors / Conseil d'Administration :
Chairman / Président Monsieur ACHIDI ACHU Simon (Ancien Premier Ministre / Former Prime Minister) Board Members / Administrateurs FOUDA Séraphin Magloire Technical Adviser, Presidency of the Republic Conseiller Technique à la Présidence de la République
ESSOMBA ABANDA Simon Pierre Secretary General, Ministry of Industry, Mines and Technological Development Secrétaire Général du Ministère de l'Industrie, des Mines et du Développement Technologique
NJOMATCHOUA Justin Secretary General, Ministry of Economy and Finance Secrétaire Général du Ministère de l'Economie et des Finances
EVOU MEKOU Dieudonné General Manager of National Sinking Fund Directeur Général de la Caisse Autonome d'Amortissement
BALEPA Elisabeth Secretary General, Ministry of Agriculture and Rural Development Secrétaire Général du Ministère de l'Agriculture et du Développement Rural
MPOUEL BALA Lazare Secretary General, Ministry of Livestock, Fisheries and Animal Husbandry Secrétaire Général du Ministère de l'Elevage, des Pêches et des Industries Animales
SADOU HAYATOU Former Prime Minister, National Director of the Bank of Central Africa States Ancien Premier Ministre, Directeur National de la Banque des Etats de l'Afrique Centrale
MOUKOKO MBONJO Pierre Minister of Communication Ministre de la Communication
TSIMI EVOUNA Gilbert Government Delegate of the Yaoundé Urban Council Délégué du Gouvernement auprès de la Communauté Urbaine de Yaoundé
OBEN Peter Ashu Former Governor South-west Province Ancien Gouverneur de la Province du Sud-Ouest
HAMOA HAMATOUKOUR Former Member of Parliament Ancien Député
Auditors LACHUNOU André HAKAPOKA Narcisse WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 5 The SNI has focused its activities on high yield productive investment operations in all economic sectors, both national and international...
... to build the future WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c MANAGEMENT
General Manager / Directeur Général Deputy General Manager Yaou Aïssatou Directeur Général Adjoint [email protected] ONDOA ONANA Ambroise [email protected]
Technical Adviser No.1 Technical Adviser No.2 Conseiller Technique N°1 Conseiller Technique N°2 EFOUA MBOZO'O Anastasie ACHU ACHIRI Nelson [email protected] [email protected]
Internal Auditor / Auditeur Interne Director of Investment Director of Portfolio NENGOM Emmanuel Directeur de l'Investissement Directeur du Portefeuille [email protected] OTTO Jeanneau de Debonis FOTSO Séraphin [email protected] [email protected]
Director of Studies and Assistance Director of Real Estates Development Director of Legal Affairs Directeur des Etudes et du Conseil Directeur des Opérations Immobilières Directeur des Affaires Juridiques HAND BAHIOL Magloire Claude AOUDOU Oumarou KISSOK à BAKO Joseph [email protected] [email protected] [email protected]
Director of Finance and Recovery Director of General Affairs Director of Human Resources Directeur des Finances et du Recouvrement Directeur des Affaires Générales Directeur des Ressources Humaines KALDJOB MABOUT Victor Marie SOLLO ASSOMO MEDJO Léocadie AMBASSA OLINGA François [email protected] [email protected] [email protected] WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 7 Message from the Board Chairman
“the current socio economic situation in Cameroon, characterised by economic liberalisation and State withdrawal from the production sector, as well as changes in the industrial structure, has turned the SNI into a major investment capital and development institution.” WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 8 MESSAGE FROM THE BOARD CHAIRMAN
Mr ACHIDI ACHU Simon (Former Prime Minister) Chairman of the Board of Directors
In 2005, the National Investment Corporation of Cameroon (SNI) comple- tely overhauled its organisational structure.
Indeed, the current socio economic situation in Cameroon, characterised by economic liberalisation and State withdrawal from the production sector, as well as changes in the industrial structure, has turned the SNI into a major investment capital and development institution. Such far reaching changes required that SNI reorganise its management structure and redefine its missions, strategic objectives and draw up new policies to implement its action plan.
This was the reason why in 2004, a new Business Plan was drawn up, which focused on the implementation of an efficient and rigorous management policy aimed at creating value added and promoting efficiency at all levels.
In addition, the new organisational chart adopted in July 2005 took into account: - the main mission of the SNI, which is providing investment capital; - related activities of the Corporation such as studies and consultancy services; - portfolio management; - development and management of real estate holdings; - support services necessary for the proper implementation of the programmes of operational units.
The implementation of this programme in 2005 was a clear indication of SNI's strong determination to make 2005 a turning point in the efforts to revive its activities and consolidate its investment programmes. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 9 NATIONAL AND INTERNATIONAL ENVIRONMENT
National Economic Context
Economic activity in Cameroon rates of 12% and 2.1% respectively. declined in 2005, recording a growth rate estimated at 2.4%, as against 3.5% The tertiary sector did not perform well in 2004 and 4.2% in 2003. either, even though performance in some areas such as telecommunica- Growth in the primary sector stood at tions, maritime and railway transport 2.7% in 2005 as compared to 4.4% in improved in 2005. Growth in the tertiary 2004. Rubber, palm oil and cocoa pro- sector dropped from 6.6% in 2004 to duction increased during this period, 3% in 2005. but cotton, coffee and banana produc- tion for the export market dropped substantially. Performance in the fishe- Evolution of Inflation ries and livestock sectors also impro- ved, although the increase witnessed After the stability observed in 2004, was not enough to reduce the country's inflation increased along with the rise in dependence on imported products. the general consumer price index, Forestry activities also showed some estimated at 2% in 2005 as against encouraging growth 0.3% in 2004. This inflationary trend was probably triggered by the increase Production in all the secondary in the prices of beverages, oil products, sectors declined sharply in 2005, building materials, fuel, including other recording a negative growth of 1.8% as energy sources and transportation against a negative growth rate of 0.2% costs. in 2004. Crude oil production dropped by 8.6%, refined petroleum products dropped by 6%, that of batteries by 15 % and the production of beers and soft drinks by 8%. Only the water and elec- tricity sectors registered positive growth
Major events that impacted on the economy of the country
- The signing of the three year Growth and Poverty Reduction Facility by the government of Cameroon and the IMF; - The signing of the letter of intent between the government of Cameroon and the ALCAN group concerning the projected extension of ALUCAM to enable it triple its production capacity, which currently stands at 90 000 tonnes per year. - The signing of an agreement between the Ministry of Transport and the American company known as LLC to set up urban and interurban transport companies - AES Sonel's presentation to the Cameroon Government of an estimated 352 billions FCFA investment programme that it intends to implement over a five year period; - Pursuance of the peaceful settlement of the Cameroon - Nigeria border dispute; - The voting and enactment of the 2005 State budget, which stood at 17 606 billions F CFA WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 10 The International Economic Environment
After recording a sustained economic growth rate, economic activity slumped, moving from 5.3% in 2004 to 4.9% in 2005. The economic environment was considerably affected by the sharp rise in crude oil prices and the inflationary trend that led to a decline in the purchasing power of households, a situation which was further aggravated by the Israeli attacks on Lebanon and the decision taken by Iran to develop nuclear capacity, and the threats that followed this decision.
According to IMF estimates, world GDP increased by 3.2% in 2005 as against 3.8% in 2004. This recession, which began in the second half of 2005 had repercussions in all industriali- sed countries. Europe recorded a lower than expected growth rate. In Japan and even in oil producing countries, the growth rate dropped from 6.9% to 6.1% as a result of the combined effects of high oil prices and lower demand from high income countries. In spite of the sustained increase in oil revenue, oil producing exporting countries also witnessed a slower economic growth, moving from 6.6% to 5.6%.
The economy of the United States of America witnessed a boom in 2005, in spite of the sharp rise in oil prices and natural catastrophes such as the Katrina hurricane. Its growth rate jumped to 3.4% from 2.7 % in 2004.
During the same period, the economy of the East Asia and Pacific region grew rapidly, reducing the poverty index in that region. The region had a growth rate of 8.5% in 2004 and accounted for a third of the increase in world trade. The countries of this region are well on their way to achieving the Millennium Development Objective on poverty reduction.
China continued as a strong economic force both in terms of trade and production of goods. Its strong growth helped to strengthen the integration of East Asian economies and to integrate the region into the world economy.
Economic activity declined considerably in Europe and Central Asian countries 2005. In this region, GDP growth stood at 5.3%, a strong growth certainly, but a marked drop from the 7.2% registered the year before.
Growth rates fell from 7.2% to 6% in Russia, 12.1% to 4.4% in the Ukraine, 5.4% to 3.5% in Poland and 8.9% to 4.8% in Turkey.
The African economy also grew by 4.4% in 2004, with almost all the countries showing positive growth. This performance is expected to continue in 2005. The region is however faced with serious threats: poverty and the HIV/AIDS pandemic as well as malaria both of which kill about 2 800 Africans each day.
African countries south of the Sahara have experienced strong growth of more than 5 % over the past four years. This has mainly been the result of faster growth rates in oil producing countries such as Nigeria, Angola and Equatorial Guinea. In the CEMAC zone, growth stood at 3.8% as against 4% in 2004. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 11 MISSIONS OF THE SNI
This corporation has the mission to economic sectors, both national and mobilise and channel national savings international. and all other financial resources Since its inception in 1964, the towards the financing of economic and SNI has, in support of government's social investment operations in the industrialisation policy, contributed industrial, agricultural, commercial and significantly towards promoting financial sectors, as well as in the large-scale investment in all the sectors services, and hotel sub-sectors, notably of the economy by issuing development through: bonds and providing adequate financing. These were loans from banks - setting up projects; and financial institutions to finance the implementation of the productive - carrying out studies or financial investment policy of the government. operations that can boost economic and Thus, SNI has participated in the setting social development in the country: up of some one hundred enterprises, some of which today have become the - acquiring or buying shares in real engines of national economic companies; growth. Some of these were set up as part of government's strategy which - negotiating debentures, bonds evolved from creating import substitu- and other negotiable instruments; tion industries to the local processing of raw materials. - granting loans or providing backing to companies in which it owns Implanting enterprises throu- equity in accordance with its internal ghout the national territory has helped rules and regulations; to boost development in all regions of the country, create many employment - conducting studies, evaluating opportunities and distribute income to projects and managing investment Cameroonians of all walks of life. operations on behalf of the State, public institutions and local public entities; Again, the expansion of SNI's portfolio was accompanied by the - providing technical assistance realisation of the social infrastructure to third parties for a fee required of most agro industries, development companies and logging or timber processing companies. In this respect and in keeping with its new Business Plan, the SNI has As provided for in the texts and in focused its activities on high yield accordance with the rules and productive investment operations in all regulations in force, SNI sells the WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 12 MISSIONS OF THE SNI shares it holds in enterprises of its portfolio to private investors as soon as competent authorities decide that its presence in the said enterprises is no longer necessary. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 13 AREAS OF COMPETENCE WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 14 AREAS OF COMPETENCE
Because of its many missions, the SNI is a major player in the Cameroonian economic environment, as the following indicates :
SNI: Public owned company with the State as sole shareholder. Although this is a company with State owned capital, which helps to implement the economic, industrial and social strategies and polices of the Cameroonian government, it functions along the lines of a limited liability company and is governed by ordinary law.
SNI: Venture Capital Corporation It is a venture capital company that acquires equity in new or already existing companies that have good commercial and financial prospects.
SNI: Promoter of Productive Projects Initiates projects, carries out studies, sets them up in joint ventures with previously identified technical, financial or commercial partners, whether national or international;
SNI: Financing institution Provides support to projects that are economically and financially viable, through loan grants and / or advances to shareholders' current accounts.
SNI: Support to the private sector It is a facilitator that receives and accompanies investors as well as tech- nical and financial partners who so request in the implementation of their projects WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 15 RESOURCES
The staff
As of 31 December 2005, SNI had a total staff strength of 88, distributed as follows:
- Management staff: 31 (9 women, 22 men) - Mid level employees: 29 (23 women and 6 men) - Other employees: 29 (3 women and 25 men)
The number of these employees increased as follows - 1964 when it was set - up: 3 persons - 1973-1974: 40 persons - 1982-1983: 101 persons - 1993 - 1994: 176 persons
Right from the beginning, SNI based its personnel recruitment policy on excellence and professionalism. To achieve this, it set up an adapted training programm, focusing on the main missions of the corporation.
As a result, the SNI now has a multidisciplinary management staff made up of econo- mists, financial analysts, accountants, business law experts, engineers, etc
Adapted financial resources
They are made up mostly of:
- Equity capital; - Loans that it can raise; - Income from shares (dividends); - Income from investments; - Interest from loans; - Income from the sale of the equity it holds in companies; - Income from interventions and services (rents) - The sale of its know how; - Etc.
Investment funds being set up
The SNI is participating actively in the setting up and putting in place of investment funds for the financing or co-financing of projects. Such funds can be investment funds of a general nature or sectoral funds such as the E&CO, which is intended for the finan- cing of mini micro hydroelectricity projects.
A new organisational structure based on the Business Plan
The organisational structures of the SNI has 8 departments, four of which are operatio- nal structures and four administrative. This structure also includes two Technical Advisers, and internal auditor, both attached to the Director General's Office WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 16 RESOURCES
The operational Departments are:
- The Department of Investments - The Department of portfolios - The Department of Studies and Consultancy - The Department of Real Estate Development
The four administrative departments are:
- The Department of Finance and Recovery - The Department of General Affairs - The Department of Human Recourses - The Department of Legal Affairs
It also has a network of competent partners
Over the years, the SNI has built up a network of partners made up mostly of big inter- national corporations to help it carry out its missions.
This network today comprises the following:
LAFARGE (CIMENCAM), BGI (Brasseries du Cameroun), SOMDIAA-GMP (SOSU- CAM), ITALLEGNO/SLOTER (ECAM-PLACAGES), BARRY CALLEBAUT (SIC- CACAOS), TOTAL , MOBIL, PECTEN (SONARA), DMC, COPARTEX, DEG (CICAM), Groupe ALCAN, AFD, COFIMER (ALUCAM-SOCATRAL), UNIMAR, DEG (CAMS- HIP), EXIMBANK-CHINA, etc.
SNI's new strategy calls for the opening up of this network to other sectors with high growth potential, so that the Corporation can fully benefit from the numerous opportu- nities offered by North-South and South-South cooperation. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c Building the future 17 SNI PRODUCTS
Venture capital: The traditional mission of the SNI
The corporation has funds with which it can acquire shares in joint ventures with other partners, finance its own projects or those initiated by private national or international promoters.
Development capital
The SNI can participate in financial restructuring through the provision of funds, consolidation of loans or advances to the shareholders' current account during the implementation of development plans (upgrading of capital, capacity extension or expansion) or company rehabilitation plans.
Capital Transfer
The SNI can acquire shares in existing companies with high growth potentia.
Retrocession
The SNI, can, if government so decides, sell all or part of the shares it owns in the capi- tal of companies in its portfolio to private national or international entities.
Loans
The SNI can grant loans and / or advances to the shareholders' current account of com- panies in which it holds shares, in proportion to its share in the capital.
Guarantees
The guarantees required by SNI for loan grants are: mortgages, collateral security and credit allocation. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 18 SNI PRODUCTS
Studies
SNI is well equipped to conduct or evaluate studies to analyse the viability and profitability of pro- jects: SWOT analysis, market studies, pre-feasibility or feasibility studies, etc.
Consultancy and/or Assistance
SNI can provide consultancy services to third parties for a fee. Consultancy or assistance can be provided for studies, search and mobilisation of funds, search for technical or trading partners, supply of equipment or raw materials, negotiation of contracts, preparation of tender documents, examination and selection of bidders, etc…
Training
This is done through the organisation or participation in seminars, workshops, conferences or colloquiums.
Support to Government in the implementation of major infrastructure projects
Generally initiated by Government, large-scale projects are those that require huge investments in strategic sectors, whose realisation would have a positive spill over effect on the economy.
SNI's 2005 Action Plan, inherited from previous years, contained the following programmes: - The programme for the industrialisation of the banana-plantain sub-sector (PREBAP), better known under its French name - Programmes de Reconversion de la filère Banane Plantain; - The Bauxite-Alumina-Aluminium sub-sector (SWOT and profitability analyses); - The energy sub sector; - The revamping of the cotton sub sector WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 19 FINANCIAL SITUATION
The balance sheet on 31 December 2005 shows a 3.8% increase WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 20 FINANCIAL SITUATION
Financial statement During the financial year that ended on 31 December 2005, the Corporation had a gross income of 3 116 872 978 FCFA, representing a 10.18% drop from the previous year which had stood at 3 434 143 156FCFA
This drop in the gross income is mostly the result of the 5% decline in the yield from the company's portfolio: 5 678 902 334 FCFA as against 5 971 932 200 FCFA in the previous year
The net profit stood, however, at 823 493 970 FCFA as against 772 264 459FCFA in 2004, representing an increase of 6.63%
The income account, the situation of assets, the trend of stock values and shares and income from the Corporation's portfolio are analysed below:
Statement of accounts In 2004, key activity and management indicators and results were as follows: (in FCFA)
EXERCICE 2004 EXERCICE 2005 VARIATION LIBELLES (%) Income Income from portfolio 5 971 932 200 5 678 902 334 -4,91 Income from cash operations 186 270 289 230 724 232 23,86 Income from operations with clients 89 570 453 95 568 370 6,69 Income from sundry operations 210 082 917 246 517 732 17,34 TOTAL INCOME FROM OPERATIONS 6 457 875 859 6 251 712 674 -3,20 Operating costs Expenses on operations with clients 63 994 691 63 994 691 0 Banking costs 5 201 718 8 059 837 5,49 Consumables 404 137 175 396 329 015 -2,00 Transportation costs 38 900 642 38 533 707 -0,09 Other services used 535 691 306 465 763 527 -31,53 General operating costs 303 586 412 362 422 843 -19,38 Personnel costs 953 924 848 1 065 401 928 +11,68 Taxes 42 405 550 22 841 443 -46,13 Depreciation 675 890 361 710 492 705 +5,11 TOTAL OPERATING COSTS 3 023 732 703 3 134 839 696 +3,67 Gross income 3 434 143 156 3 116 872 978 -9,23 + reversal of provision - 8 059 837 100 - Provisions 672 241 420 1 996 669 432 197,01 Current income 2 761 901 736 1 128 375 217 -59,14 +non recurring income 106 574 209 359 195 265 237,03 - non recurring losses 2 052 114 917 138 564 687 -93,24 + Capital gains 28 264 200 - -100 Gross income 844 625 228 1 349 005 795 59,71 Income tax 72 360 769 525 511 825 626,23 NET PROFIT DURING PERIOD 772 264 459 823 493 970 6,63 WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 21 FINANCIAL SITUATION
A. Income Statement
Income from operations :
Earnings from operations stood at 6 251 712 674 FCFA in 2005 as against 6 457 875 859 FCFA on 31 December 2004. This 3.2% drop is mostly the effect of the drop in income from shares (dividends).
However, the rational and rigorous management of financial operations, the follow up and recovery of rents and loans made it possible to achieve satisfactory results, eva- luated at 23.86%, 106.69% and 117.34% respectively, and made up for the drop in income.
Gains
Gains increased sharply by 37.03% compared to 2004 because of the use of the plus value of the previous years
B. Operating Expenses
Before depreciation
These stood at 2 424 346 991 FCFA on 31 December 2005 as against 2 347 842 342 FCFA on 31 December 2004. This represented a slight increase of 3.15%. This was the result of the adjustment of personnel costs that took into consideration the num- ber of years put in, advancements and rational adjustment of housing allowances.
All the other expenses were well managed thanks to efficient management and the reduction of costs started since 2003 .
Depreciation and Provisions
Depreciation and provisions that stood at 1 348 131 781 FCFA (675 890 361 FCFA for depreciation and 672 241 420 FCFA for provisions) on 31 December 2004, increa- sed to 2 707 162 137 FCFA in 2005 (710 492 705FCFA for depreciation and 1 996 669 432 FCFA for provisions). This represented an increase in relative terms of 100.8%.
This increase can be explained by the money set aside for provisions valued at 948 361 083 FCFA to treasury advances to hotels of the Corporation's portfolio (SHNC, SHE and SOHLI). WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 22 FINANCIAL SITUATION
Non recurring losses
Non recurring losses stood at 138 564 687 FCFA on 31 December 2005, represen- ting a sharp drop from 2004, which stood at 2 052 114 917 FCFA. These non recur- ring losses were mostly due to the payment of taxes for the previous years and the setting aside of provisions.
The Balance sheet
Assets and liabilities balanced at 34 612 544 728 FCFA on 31 December 2005 as against 33 341 165 830 FCFA on 31 December 2004, showing a 3.8% increase, dis- tributed as follows:
Fiancial Year VARIATION Description Fiancial Year 2004 2005 (%) ASSETS Intangible assets. 38 009 669 145 255 353 -282,15 Fixed assets 4 731 715 590 6 150 516 293 +29,98 Equity security and other fixed assets 12 090 891 675 12 170 061 675 +0,65 Loans to clients 1 382 743 063 1 717 000 867 +24,17 Current assets 15 097 805 833 14 435 710 540 -4,38 TOTAL ASSETS 33 341 165 830 34 612 544 728 +3,80 LIABILITIES
Net situation 26 772 918 778 27 225 391 807 +1,69 Other investment capital 1 492 121 720 1 634 201 863 +9,52 Current debt 4 303 860 873 4 929 457 088 +14,53 Stockholder's equity 772 264 459 823 493 970 +6,63 TOTAL LIABILITIES 33 341 165 830 34 612 544 728 +3,80 WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 23 FINANCIAL SITUATION
Assets Liabilities
Tangible assets increased by 29.98% The liabilities in the balance sheet of 31 because of the ongoing entering in the December 2005 show that stockholder's records of tangible assets, which is part of equity accounted for 80% of the total. the process to renovate the premises of the head office. This amounts to 1 849 505 The 1.68% increase in net income is due 555FCFA, the acquiring of land and the to the fact that the net profit of the previous renovation of other buildings (Cite des year was brought forward. cadres) at a total cost of 563 922 764 FCFA The net profit stood at 823 493 970FCFA as against 772 264 459 FCFA in 2004, an Meanwhile, loans to clients increased by increase of 6.63%.. 24.17% because of the new resolution to grant loans to companies of the portfolio The 9.52 increase in the "other capital that have the necessary guarantees and funds", in spite of the overdue EXIMBANK prospects for reimbursement. loan was due to the building up of provi- sions for risks and expenses to the tune of The drop in relative terms by 4.38% of 443 456 585FCFA on sad events (death of current assets is mainly due to the drop in several employees) that happened during the various debit items whose net amount the year. moved from 5 821 195 438 FCFA on 31 December 2004 to 4 813 360 162 FCFA Short term loans increased from 4 303 860 on 31 December 2005 following provisions 873FCFA on 31 December 2004 to 4 929 for the year 457 088 FCFA on 31 December 2005 as a . result of the taking into account of the overdue EXIMBANK CHINA loan .
Significant ratios
The financial statement of SNI on 31 December 2005 in assets and liabilities increased in relative terms by 3.8%. The financial situation and the structure of the balance sheet were satisfactory and some headings even showed a marked improvement as compa- red to the previous year. See the structure and profitability ratios below : WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 24 FINANCIAL SITUATION
Significant ratios
RATIO Financial year 2004 Financial year 2005 GAP (A) (B) (B-A) General liquidity ratio
Total Assets 5,75 5,27 (0,48) Foreign capital
Financial independence ratio
Owner's equity 0,80 0,78 (0,02)* Total liabilities
Liquidity ratio
Current assets 0,45 0,41 (0,04) Total assets
Financing ratio
Investment capital 1,68 1,57 (0,11)* Fixed assets
Profit margin ratio Pre-tax income 12,81 21,57 8,76 Turnover Net profit 11,10 13,17 2,07 Turnover
* The funds granted by the State for the renovation of the building, which were placed under capital increase are still entered under the regularisation of liabilities account. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c FINANCIAL SITUATION
FINANCIAL ANALYSIS OF THE PORTFOLIO
THE "LOANS AND EQUITY" PORTFOLIO
The "loans and equity" portfolio has evolved in absolute terms over the last five years as follows (in FCFA)
(million FCFA)
29 880 396 294 30 000 29 714 490 223 29 714 490 223 28 838 942 042 29 123 592 648
22 836 865 512 22 836 865 512 21 905 977 337 22 190 567 337 22 317 737 337 20 000
10 000
7 562 658 957 6 917 624 711 6 917 624 711 6 933 024 711 6 933 024 711
0 30 / 06 / 2002 31 / 12 / 2002 31 / 12 / 2003 31 / 12 / 2004 31 / 12 / 2005 (Exercice)
Description
Equity
Loans
TOTAL (Equity + Loans)
EVOLUTION OF THE "EQUITY" PORTFOLIO
The equity portfolio went up slightly from 22 190 567 337 FCFA on 31 December 2004 to 22 317 737 337 FCFA on 31 December 2005, a small increase by 0.5% because it bought sha- res in the Registered capital of ACEP CAMEROUN. WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 26 FINANCIAL SITUATION
EVOLUTION OF THE "LOANS" PORTFOLIO
The value of the "loans" portfolio moved from 6 933 624 711FCFA on 31 December 2004 to 7 562 658 957 FCFA in 2005, representing an increase by 9.07%. This was due to the new dynamic of granting loans to companies of the portfolio that have the necessary guarantees and sure ability to reimburse.
EVOLUTION OF THE VALUE OF THE PORTFOLIO
The regular updating of provisions from one year to the other, based on the mathe- matical calculations of the Corporation gives an idea of the net value of the portfolio. The evolution of the net and gross value of this portfolio is as follows:
DESCRIPTION 31 / 12 / 2004 31 / 12 / 2005 EQUITY CAPITAL
Gross value of shares 22 190 565 337 22 317 737 337 Accrued Provisions 10 113 712 469 10 163 712 469 Net value 12 074 854 868 12 154 024 868 Ratio of provisions to shares (%) 45,59 45,54 LOANS AND ADVANCES
Gross value of loans and advances 6 933 024 711 7 562 658 957 Accrued Provisions 5 550 281 648 5 851 658 090 Net value 1 382 743 068 1 711 000 867 Ratio of provisions to loans and advances (%) 80,05 77,37
GLOBAL PORTFOLIO
Gross value of portfolio 29 123 592 048 29 880 396 294 Overall accrued provisions 15 665 994 117 16 015 370 559 Net value of portfolio 13 457 597 931 13 865 025 735 Ratio of provisions to portfolio (%) 53,79 53,59
PORTFOLIO INCOME
31/12/2004 31/12/2005 VARIATION DESCRIPTION (%) (%) (%) Before provision 26,91 25,44 -1,47 Return on securities After provisions 49,45 46 -1,98 Before provision 1,30 4 2,7 Return on loans After provisions 6,48 19 12,52 Overall portfolio yield (invest- Before provision 20,21 20,09 -0,12 ment + loans) After provisions 45,04 43 -2,04 The net global yield of the "equity capital and loans" portfolio dropped by 2.04 points, moving from 45.04% on 31 December 2004 to 43% on 31 December 2005
A close look at the situation shows that global income was affected by the drop in income from securities and a substantial increase in income from loans . WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 27 CORPORATION'S PORTFOLIO
On 31 December 2005, SNI had 30 enterprises in its portfolio. Of this number, 26 were operating normally and 4 had halted activities. All the various companies operating are classified in the consolida- ted table below
These 30 enterprises are classified under three sectors
Primary sector : 5 companies
Secondary sector: 14 companies
Tertiary sector : 11 companies
One can see from this table that the tertiary sector was enriched with a new company: ACEP CAMEROUN (Agence pour le Credit à l'Entreprise Privée, Cameroun) which finances micro enterprises in urban areas.
The Primary sector Primary sector On 31 December 2004, SNI's primary sector had 5 (five) companies under 3 (three) sub sectors: agro food industry (3) fisheries and livestock (1) and timber processing (1). Agro food industry sub sector: 3 companies Below is the list of companies, presented Fisheries and livestock sub sector: 1 company according to sub-sector and the table of Timber processing sub sector: 1 company consolidated figures
SUB SECTOR ENTREPRISES ACTIVITIES SOSUCAM (Société Cultivation and industrial processing of Sucrière du Cameroun) sugar cane and other tropical products SAFACAM Forest exploitation, rubber and palm oil AGRO-INDUSTRY (SAFA-CAMEROUN) plantations MAISCAM (Société Cultivation and processing of maize Camerounaise de Maïserie) SODEPA (Société de Déve- Promotion, exploitation and development of lives- loppement et d'Exploitation tock industries and industries producing agricultural LIVESTOCK AND FISHERIES des Productions Animales) inputs for livestock breeding and processing of ani- mal products: slaughter houses, refrigerated sto- rage facilities, packaging factories, etc TIMBER PROCESSING ECAM-PLACAGES Production of thin boards WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 28 CORPORATION'S PORTFOLIO
The following table indicates the global figures of the primary sector in 2005 compared to those of 2004 Consolidated figures (in millions FCFA except for manpower)
Year Heading 2004 2005 GAP (%) 1. Capital 22 380 21 138 -5,55 2. Manpower 4 162 4 000 -3,89 3. Personnel costs 14 269 12 056 -15,51 4. Net accrued investments 54 200 66 005 21,78 5. Value added 31 141 27 373 -12,10 6. Pre-tax Turnover 63 335 59 405 -6,21 7. Financial costs 6 316 4 779 -24,34 8. Taxes paid to the State 1 506 1 590 5,58 9. Net profit 367 494 34,60 10. Dividends paid 248 303 22,18
The drop in capital in 2005 was due to the restructuring of own capital by ECAM PLACAGES, lowering its capital from 2 760 millions FCFA in 2004 to 1 518 millions F CFA in 2005
The primary sector had a consolidated gross turn over of 59 405 millions FCFA in 2005, repre- senting a drop in relative terms of 6.21% as compared to 2004 which stood at 63 335 millions FCFA. The net income remained on the increase, standing at 494 millions FCFA, that is an increase by 34.6% as compared to that of 2004 which was 367 millions FCFA.
The Secondary sector Secondary sector This sector has 14 companies distributed into five sub sectors: food processing (4), textiles and dressmaking (2), building materials (1) Metalwork and electromechanical engineering sub sector: metalwork and electromechanical engineering 6 companies (6), chemicals and energy (1) Food processing sub sector: 4 companies Textiles and dressmaking sub sector: 2 companies Building materials sub sector: 1 company Chemicals and energy sub sector: 1 company WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 29 CORPORATION'S PORTFOLIO
Secondary sector
Below are the list of companies according to sub-sector and the table of consolidated figures
SUB SECTOR ENTREPRISES ACTIVITIES SIC-CACAOS (Société Production of cocoa butter, cocoa paste Industrielle des Cacaos) and cake Brewing and sale of beer, beverages, SABC (Société Anonyme des syrups, ice, draff and sundry as well and FOOD INDUSTRIES Brasseries du Cameroun) the manufacture of auxiliary products SEMC (Société des Eaux Processing and bottling of mineral water Minérales du Cameroun) (TANGUI WATER) Production and marketing of concentrated MILKY WAY milk and other by- products of milk powder
CICAM (Cotonnière Spinning, weaving, bleaching, dyeing and Industrielle du Cameroun) printing of cotton fabrics TEXTILEs SCS (Société Camerounaise Spinning, weaving, designing of jute bags, des Sacheries) production of polypropylene and polyethy- lene bags BUILDING MATERIALS CIMENCAM (Les Exploitation of a cement factory in Figuil and Cimenteries du Cameroun) a clinker factory in Douala, production of cement SOCATRAL (Société Came- Exploitation of aluminium and its alloys, pro- rounaise de Transformation duction of sheets and related products de l'Aluminium) ALUBASSA (Société Manufacture of household articles, metal- METALWORK AND ELECTRO- Aluminium de Bassa) work (folded aluminium products), marketing MECHANICAL ENGINEERING of such articles ALUCAM (Société Came- Realisation and exploitation of industrial rounaise de l'Aluminium) establishments processing aluminium
CAMELCAB (Cameroon Exploitation of a cable factory, electric Electric Cables) cables, electrodes for welding. Marketing and distribution of products CHEMICAL AND ENERGY SOCAVER (Société Manufacture and decoration of hollow glass INDUSTRIES Camerounaise de Verrerie) articles SONARA (Société Nationale Refining of crude oil de Raffinage) WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 30 CORPORATION'S PORTFOLIO
The table below presents consolidated figures for the secondary sector in 2005 as compared to those of 2004.
Consolidated figures (in million FCFA except for manpower)
Year Heading 2004 2005 GAP (%) 1. Capital 61 705 61 705 0,00 2. Manpower 4 705 4 295 -8,71 3. Personnel costs 36 038 32 450 -9,96 4. Net accrued investments 161 915 155 983 - 3,66 5. Value added 108 115 166 770 54,25 6. Pre-tax Turnover 736 370 610 298 -17,12 7. Financial costs 14 270 22 632 58,60 8. Taxes paid to the State 32 347 42 278 30,70 9. Net income 9 521 56 240 490,69 10. Dividends paid 26 656 25 523 -4,25
The accrued turnover of enterprises in the secondary sector, excluding taxes, stood at 610 298 millions FCFA in 2005. This represented a 17.12 drop form that of 2004 which stood at 736 370 millions FCFA
Net income, which amounted to 56 240 millions FCFA, was largely positive(490.69%) as com- pared to 2004 which stood at a mere 9 521 millions FCFA. This was thanks to the excellent per- formance of SONARA, whose good or poor performance impacts on all the sectors.
Secondary sector WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 31 CORPORATION'S PORTFOLIO
The Tertiary sector
As of 31 December 2005, the tertiary sector had 11 Tertiary sector (eleven) companies as against 10 in the previous year, following SNI' participation in the capital of ACEP CAMEROUN SA. Among these 11 compa- nies, ten are operating normally while one is still at the start up phase. The hotel business, tourism and These companies are distributed into three sub sec- advertisement sub sector: 6 companies tors as follow: Transportation, shipping, handling sub sector: 3 companies The hotel business, tourism and advertisement:6 Financial and banking institutions sub sector: 2 companies Transportation, shipping, handling: 3 Financial and banking institutions: 2
Below are the list of companies presented according to sub-sector and the table of consolidated figures
SUB SECTOR ENTREPRISES ACTIVITIES SHNC (Société Hôtelière Construct, cause to be constructed, acquire or Nord Cameroun) lease out, manage or give out hotels or inns for management SGHC (Société des Grands Construct, cause to be constructed, acquire or HOTEL BUSINESS, TOURISM, Hôtels du Cameroun) lease out, manage or give out hotels or inns ADVERTISEMENT for management CHC (Cameroon Hotels Construction and management of international Corporation) class hotels of the five stars category SOHLI (Société Hôtelière Conducting of architectural and technical, finan- du Littoral) cial feasibility and marketing studies for the SHE (Société Hôtelière de construction and management of low cost l'Est) hotels CPE (Cameroun Publi- Advertisement and tourism Expansion) CAMSHIPLINES (Cameroon Maritime transport Shipping Lines) CIC (Camship Investment Administration, management and control of compa- Corporation) nies. All related venture capital operations. Search TRANSPORTATION - for financing and partners. Transportation of petro- SHIPPING - HANDLING leum products and solids in bulk, dredging and management of harbours SCDP (Société Camerou- Management storage facilities for petroleum naise des Dépôts Pétroliers) products DSX (Douala Stock Financial market (stock exchange) FINANCIAL AND BANKING Exchange) INSTITUTIONS ACEP CAMEROUN Financing of micro businesses in urban areas WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 32 CORPORATION'S PORTFOLIO
The table below presents the consolidated figures for the tertiary sector in 2005 as com- pared to those of 2004
Consolidated figures (in millions FCFA except for manpower)
Year Heading 2004 2005 GAP(%) 1. Capital 20 164 21 514 6,70 2. Manpower 1 169 1 193 -8,71 3. Personnel costs 6 038 6 275 3,93 4. Net accrued investments 35 234 34 155 -3,06 5. Value added 7 843 9 434 20,29 6. Pre-tax Turnover 33 965 33 025 -2,77 7. Financial costs 887 950 7,10 8. Taxes paid to the State 958 1 256 31,13 9. Net income -668 -647 3,14 10. Dividends paid 235 226 -3,98
From this table one can observe
- An increase in the "registered capital" heading of 6.7% following the capital increases in the DSX (from 1200 millions FCFA to 1800 millions FCFA), CAMSHIPLINES IC (from 500 millions FCFA to 1 800 millions FCFA) as well as participation in the capital of ACEP Cameroon, which has a registered capital of 600 millions FCFA: - A drop in net accrued investments, turnover and dividends paid out
Indeed, the gross turnover of the tertiary sector stood at 33 025 millions FCFA as against 33 965 millions FCFa in 2004, representing a - 2.77% drop
The net income of the sector also dropped and stood at 647 millions FCFA as against a loss of 668 millions FCFA in 2004, a slight increase of +3.14% WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 33 CORPORATION'S PORTFOLIO
Consolidated figures of all the sectors (in million FCFA except for manpower)
Year Heading 2003 2004 2005 1. Capital 103 190 104 249 104 357 2. Manpower 10 651 10 036 9 483 3. Personnel costs 54 936 56 345 50 781 4. Net accrued investments 242 742 251 349 256 143 5. Value added 147 014 147 099 203 577 6. Pre-tax Turnover 775 616 833 670 702 728 7. Financial costs 25 836 21 473 28 361 8. Taxes paid to the State 27 632 34 811 45 124 9. Net income 26 559 9 220 56 089
All the sectors in graph.
(millions FCFA)
900 000
800 000
700 000 702 728
600 000
500 000
400 000 366 748
300 000
200 000 203 577
104 357 100 000 50 000
0 2003 2004 2005
Capital Value added Taxes paid to the State
Manpower Gross turnover Net income
Net accrued investments Financial costs WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 34 CORPORATION'S PORTFOLIO
It should be noted that:
(a) The gross consolidated turnover, for 2005 stood at 702 728 millions FCFA as against 833 670 millions FCFA in 2004. The various sectors contributed as follows to this turno- ver:
Primary sector: 59405 FCFA, that is 8.45% of the consolidated gross turnover, as against 7.60% in 2004. In 2004, the turnover was 63 335 millions FCFA Secondary sector: 610 298 millions FCFA, that is, 86.85% of the overall turnover, as against 736 370 millions FCFA in 2004 Tertiary sector: 33 025 millions FCFA, that is 4.70% of the gross overall turnover. This turnover stood at 33 965 millions FCFA in 2004
(b) The accrued net income remained positive, standing at 56 089 millions FCFA in 2005 as against a net income of 9 220 millions FCFA in 2004
The contributions of the various sectors were as follows:
Primary sector: 494 millions FCFA, that is, 0.88% of the overall income. This sector had a net income of 367 millions FCFA, that is, 3.98 % in 2004 Secondary sector: 56 240 millions FCFA, that is 100.27% of the overall net income in 2005 as against 9 521 millions FCFA on 31 December 2004, representing 103, 26 % for the secondary sector Tertiary sector: 647 millions FCFA, that is, a negative contribution of -7.25 % to the overall net income in 2005. This sector had a net income of 668 millions FCFA in 2004
Companies in SNI's portfolio in 2005 shared dividends to the tune of 25 052 millions FCFA in 2005 as against 27 139 millions FCFA in 2004 and 26 979 millions FCFA in 2003
The number of companies that were able to share dividends in 2005 increased, moving from 8 (eight) to 9 (nine)
Of these, 2 were from the primary sector (SAFCAM and ECAM PLACAGES) six from the secondary sector (SABC, SEMC, CIMENCAM, SOCAVER, ALUCAM) and one from the tertiary sector (CIC) .
companies that were able to share dividends (percentage) Primary sector: 24%
Secondary sector : 64%
Tertiary sector : 12% WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c 35 National Investment Corporation of Cameroon
Nous construisons demain WorldReginfo - 77689710-b23d-4d73-bb49-25dd9286e67c