Annual Kersten 2011

DE TIJDENVERANDERENmoderniseren nu binnen handbereikCKC SURMAC BIEDT DE MOGELIJKHEID VOOR FINANCIERING

building a sustainable future annual report 2010

building a sustainable future


Message from the CEO 5

Report of the Supervisory Board 6

Kersten 010 in perspective 8

Kersten’s Green Economy 10

010: A year in review 1

Condensed Consolidated Financial Statements

Independent Auditor’s Report

Business Performance 010 4

About C. Kersten en Co. N.V. 4

CONTENTS

4


financial security and social responsibility

5

MESSAGE FROM THE CEOAs we reflect on 010, it becomes clear that the challenges we have faced in the past have

served us well to prepare us for a challenging future. As the Surinamese community reels

from the changes brought about by the new government, and as the economy searches for

a new equilibrium, Kersten serves as a beacon of stability for her employees and her clients.

Kersten has responded to the new realities facing Suriname with renewed diligence and

even more rigorous control measures in terms of cost control and heightened investment

scrutiny and preparing by our organization to offer the market more sustainable financing

solutions. The lack thereof is one of the major bottlenecks for the development of certain

industries in Suriname. While continuing to strengthen her financial position, Kersten

has already started to lead the nationwide transformation towards a more service based

economy, while at the same time deepening our involvement in existing industries, such as

mining, forestry, infrastructure and agriculture.

When looking ahead, we are imbued with strengthened resolve to ensure that new ventures

lead to revenue, industry, customer and risk diversification. We are confident that our new

ventures will blossom, in part to our commitment to excellence, but also through new and

strong bonds with strategic partners, financiers, world class suppliers and customers.

Although profitability, financial security and social responsibility remain firmly fixed in our

business culture, we are intensifying our focus on risk management, compliance and opera-

tional excellence.

An uncertain future awaits us, but one thing is clear above all, and that is that our almost

4 year tradition of perseverance and business flexibility, socially responsible entrepre-

neurship and innovative solutions will continue to guide our actions.

We thank our employees for their loyalty and commitment and our suppliers and customers

for their unceasing trust.

Shirley Sowma-Sumter

Chief Executive Officer

financial security and social responsibility

6

…commitment and devotion In compliance with the provisions of articles 9 and 12 of the Articles of Association we have the honour of submitting the annual report and accounts for the financial year 2010, as approved by us. The annual accounts have been audited by KPMG Accountants B.V. and their report is included herein. Pursuant to article 12 clause 12.6 of the Articles of Association, we recommend that you adopt the present annual accounts, and discharge the Board of Management of their responsibility in respect of the management carried out during the reporting period and that you discharge the Supervisory Board of its responsibility in respect of their supervision. We agree with the proposal of the Board of Management to add the Net Profit to the general reserves.


Considering the economic environment, Kersten showed a good performance in 010. It

proved the resilience of our activities.

As said last year we would continue to develop our company. In that regard major steps

were set to better service our customers and to benefit from commercial opportunities.

In the beginning of the year a joint venture was established with Cementos Argos S.A.

to strengthen our cement operations. Later in the year a letter of intent was signed with

Neal & Massy Holdings Limited to jointly expand the service to our customers. Kersten

and its customers can benefit from the knowledge and expertise of our partners.

CKC Motors successfully introduced two new car brands, JAC and Mahindra, to widen our

product offerings to our clientele.

Surmac and DAF Nederland signed a dealership agreement and introduced Caterpillar

Certified Used Equipment and Alginco successfully expanded its Mitsubishi dealership.

Other initiatives taken were the establishment of the first Carbon Laboratory in Suriname

together with Conservation International, which will enable the valuation of the tropical

forest and the Kersten Tourism Foundation continued the development of the interior

community in the Brokopondo District. The first stone was laid for the Brokopondo

Vocational Training Center.

The launching of SurmacRent in January 011 is an example that we will continue

to develop our operations to further strengthen our position as one of the leading

companies in Suriname.

Last but certainly not least, we would like to express our gratitude to all our employees

for their continued commitment and devotion without which, we would not have been

able to realize what has been achieved. We thank them for their valuable contribution

and unrelenting efforts. We also would like to thank our customers and suppliers for

their continued confidence in us. And finally we would like to compliment management

with the results achieved.

On behalf of the Supervisory BoardDavid A. Voûte

Chairman

SUPERVISORY BOARD

REPORT OF THE

8

Kersten 2010 in perspective

WORKING IN

During the year under review, businesses were generally able to operate under a more favorable macroeconomic climate. This mainly resulted from improved cyclical external conditions. After being affected by the global recession in 2009, the economy of Suriname clearly benefitted from a recovery particularly in the systemic emerging markets. Prices of virtually all our export products surged. The current account of the balance-of-payments closed with a historical large surplus. Consequently, growth in gross domestic product accelerated from an estimated 3 percent in 2009 to 4.5 percent in 2010. Investment activities were quite satisfactory.

Consumption remained buoyant. Government spending

continued to grow due to the start of the implementation

of the second phase of the civil service wage reform and to

more purchases of goods and services. The latter were partly

financed by an increase in payment arrears. On its turn, this

contributed to the rise in commercial bank loans to enter-

prises and eventually to a further increase in the already

ample macroeconomic liquidity ratio. As a result, the annual

average increase in the consumer price index surged from a

mere 1. percent in 009 to 10. percent in 010. The notable

acceleration in the inflation rate was also brought about by

physical and institutional capacity constraints, higher prices

for imported and local commodities and depreciating foreign

exchange quotations on the parallel market,

Sales figures of the various sectors of the economy were

on average favorable. The gold sector expanded somewhat

further and contributed for a notable 60 percent to our

national export earnings, thanks to a 6 percent increase in

world market prices. IAMGOLD was able to push up its produc-

tion volume with another 4 percent to a record 406,000 troy

ounces, following an impressive 4 percent rise in 009. Total

tax revenue transferred by this company to the government

(including wage tax and general pension premiums) went

up by 9 percent to USD 18 million. Despite a 6 percent

higher average proceed per barrel, production volume of the

crude oil sector remained virtually constant. However, net

profits of STAATSOLIE Suriname N.V. increased by 59 percent.

Its transfers to treasury rose to USD 156 million, making

the company the largest single contributor. Production of

alumina, until recently the cornerstone of our economy,

shrank by percent due to a lagging supply of bauxite.


9

A CHALLENGING BUSINESS ENVIRONMENT

The production capacity of the refinery was utilized for only

65 percent. Even so, Suralco’s export value rose by 6 percent,

but its tax payments shrank by some 55 percent to a mere USD

1 million.

Enterprises in agricultural, forestry and fishing sectors could

only modestly take advantage of higher prices for commodi-

ties and foodstuffs. Attempts to enhance production capacity

were hindered by structural weaknesses and insufficient

comparative advantages. Padi production remained roughly

constant, while the export price of cargo rice went up by

almost 10 percent. The hospitality and tourism industry

witnessed a welcome reversal in the decline in the number

of visitor arrivals recorded during 009. The risk of being

confronted with excess capacity remained as the expansion of

hotel and lodging facilities continued. The construction and

trade businesses continued to benefit from high consumption

and investment spending.

Business climate is expected to remain favorable for the

time being. The current revival in the world economy will

continue to stimulate production, particularly in the export

industries. Of course, this will stimulate supply and other

companies, including our own enterprise. Calculations of

the International Monetary Fund suggest, that growth in

domestic production will pick up further during 011 to some

5 percent. Medium term growth prospects are solid, given the

buoyant commodity prices, the intended large investments

in mineral and energy sectors, as well as the execution of a

government’s program to improve and expand the existing

infrastructure. Against this background, Standard & Poor’s

affirmed its long-term foreign and local currency debt ratings

at “B” and “B+”respectively. The foreign-currency outlook

was kept unchanged, but may be upgraded particularly if the

growth prospects materialize, and additional steps are taken

to strengthen public institutions and to improve the ease of

doing business. However, the outlook for the local-currency

rating was revised to stable from positive, reflecting the

sovereign’s shallow local capital market and the ensuing

limited effective availability of the monetary policy tools.

It is clear that working in such a promising and challeng-

ing environment creates additional opportunities for

the business sectors. To be able to exploit these oppor-

tunities, more innovative private initiatives should be

initiated in the non-mineral sectors. This is the prefer-

able way to expand and diversify the economic structure

and to create employment. Equally important is that the

current acceleration in the inflation rate is reversed. Apart

from the factors already mentioned above, this unsatisfac-

tory development is partly caused by the recent income

generating measures, particularly with respect to the fuel

tax taken by the government to alleviate current liquidity

constraints. The 0 percent devaluation of the exchange

rate vis-à-vis the US dollar, which was taken in January

011 to bridge the gap with the quotations on the parallel

market, also affected the prices of goods and services to

some extent. At the end of May 011, the consumer price

index was more than 0 percent higher than a year earlier,

constituting a matter of serious concern. Thus, sound

macroeconomic policies must by pursued to reduce the

rate of price increases and to contain inflation expecta-

tions, in order to create a climate conducive to a sustain-

able business expansion. On the budgetary and monetary

front, more attention should be paid to containing

consumptive spending by both the public and the private

sectors, also by conducting cautious wage policies. At the

same time, structural weaknesses should be addressed,

to improve our international competitive position. The

extent of success of such policy actions will decisively

determine the pace of the further development of our

economy.

10

KERSTEN’S GREEN ECONOMY

As the world turns her focus to “going green”, captured in the heightened recurrence of catch phrases such as, Green Energy, Green Economy and Green Development, Kersten is already one step ahead. As presented in her annual report 2009, Kersten has been “going green” for over 240 years. Kersten was founded with the principle value of developing the Surinamese community, and continues to focus on this core value by investing in capacity building, education and healthcare, through her operational activities and through her dividends.

ForestThe

Exp.

ADVENTURE

EXPERIENCE

CENTRE

MEASURING THE FOREST CARBON

DISCOVER THE SPECTACULAIR JUNGLE OF SURINAME

made possible by

CONSERVATION INTERNATIONAL


11

At the heart of the “Green Economy” movement, lays

a heightened focus on sustainable development and

sustainable entrepreneurship, two concepts that have

been part of Kersten’s culture since her inception.

“For the purposes of the Green Economy Initiative, UNEP has developed a working definition of a green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.”

Although these concepts have always been a part of

Kersten’s culture, recent years have seen Kersten increase

her focus on green economics, a focus which has resulted

in the following “Green Economy Initiatives”

Sustainable and renewable energyThrough her partnership with IAMGOLD, Kersten has

successfully conducted an alternative energy research

project in the Brokopondo region. Although the outcomes

of the study have yet to lead to realized alternative energy

deployment, the process of identifying feasible alterna-

tives has been completed in 010 and the coming years

will provide ample opportunity to implement and start

benefiting from the options identified.

Poverty reduction through knowledge transfer and opportunity creationWith the building of the Bergendal Eco cultural River

Resort, Kersten has created substantial economic activity

in a region which was previously best described as forlorn

and dangerous. After having served as the birthplace of

Suriname in ages past, the Bergendal region had been

abandoned, and all economic activity, save rogue mining

had ceased. It is Kersten, with her vision and dedication

to Eco-Tourism and sustainable development that has

brought back employment, purchasing power and signifi-

cant educational opportunities to this region. Now in her

third year, Bergendal is continuing to serve as a highly

coveted regional employer and is constantly investing in

increasing local opportunities.

Support of scientific research and investment in Climate Change AwarenessCarbonlab, Carbontour, Living Lab, the project that is

currently in her final stages has had many names,but the

focus has stayed true. Kersten, Conservation Interna-

tional, CELOS, The ministry of Forestry and IAMGOLD have

joined forces to create a truly unique tourism product.

For the first time, anywhere in the world, tourists and

forestry students will share the same eco-space, as one of

the first official carbon measurement plots that will play

a key role in Suriname’s Climate Change Finance agenda

will be transformed into a “Living Forest Experience”.

The “Forest experience” emphasizes Suriname’s

enormous biodiversity and allows tourists and students

both to learn and experiment with the concept of Forest

Carbon measurement and registration.

Capacity strengthening of rural area inhabitantsThe founding of the Vocational School in Brokopondo,

led by the Kersten Tourism Foundation, and backed by

grants, donations and non-financial support from: the

IADB Group, the government of Suriname, the Moravian

Church Foundation, Kersten, Twinning Facility Holland-

Suriname, ZZg (Education for Work program), Van Den

Top Machinebouw, Rijn Ijsel College, Wolters Noordhof,

Kenteq, IAMGOLD, UTSN, Haukes N.V. and many other

private persons and companies, is the first of its kind in

the region and will enable the rural population to obtain

the necessary skills in hospitality, mining and other

related industries that will allow them to raise their living

standards as well as stimulate local entrepreneurship and

development.

Kersten has, and always will put the community first,

and her legacy of sustainable entrepreneurship and long

term development will continue to serve as an example

in Suriname as one of the leaders in the new, Green

Economy.

1

2010 A YEAR IN REVIEWHEALTHCARE:


1

In the last quarter of 010, the final decision was taken to

transfer the Kersten pool to Staats ZiekenFonds (the State Health

Insurance Fund). Although the annual reports showed that over

the past two years Medicare was cost effective and efficient,

the provision ‘medical costs’ gave the management cause for

concern. Given the unpredictability of medical expenses, these

services threaten to impose an increasing pressure on the

operating profit, making it wise to move the risk.

Within the Kersten Group Medicare increasingly gained a

foothold as an organization advising, supporting, but also

implementing all matters related to the health of the Kersten

employees. Thus, the “Alcohol, Drugs and Drug Policy”

and Absenteeism Policy are monitored and specific activi-

ties are implemented together with the HRs of the Holding

and other companies. There is therefore in terms of absen-

teeism a decline of 6% in the number of sick days in 010

compared to 009.

In 011, Medicare will further focus on establishing

collaborations in various fields, including with Sint Vincen-

tius Hospital and other health-care partners; endoscopy and

pharmacy are being considered.

In 010 Incom formally became an agent of Novartis

Pharma, one of the largest pharmaceutical manufacturers

in the world. Novartis Pharma is a leader in oncology and

dialysis, and will contribute to the volume of business.

By adjusting our portfolio of consumables, we have been

able to properly respond to the new services offered in

Suriname such as the opportunity to renew the beds of the

Intensive Care Unit of the Academic Hospital. These new

beds meet international intensive care unit requirements,

where the critical care services (minutes and seconds) are

particularly important in case of an emergency. Because of

the peripheral equipment and related instruments these

beds are very effective for treating trauma patients.

For 011 we have the following intentions:

Professional careTop patient care treatment is becoming more common-

place in Suriname as a result of the fact that specialists

trained abroad return to Suriname with new knowledge

and techniques. Incom will and can further develop its

market share in dialysis and oncology, because of the

agreement concluded with Novartis Pharma.

Hospital portfolio Manufacturer Tempur Pedic International, the second

largest supplier of mattresses in the world, approached

Incom to be its dealer in the region.

For this agency we see a market in Suriname and Guyana.

In 011 we will enter into a partnership with CBZ Ltd.

This company specializes in Rapid Diagnostic Tests.

Using a rapid test, a condition may be diagnosed immedi-

ately when visiting a doctor. This rapid establishment

of a clinical picture is for both the doctor and patient

important. These rapid diagnostic tests prevent delays.

Alcolado GlacialAt the request of patentee Curaçao Laboratories, Suriname

Laboratories developed a hands sanitizer, which was

enthusiastically received by both the patentee and others

who were asked to assess the product. The intention is to

launch this product in the second half of 011.

Healthcare: CKC International Commodities (Incom) N.V.

Healthcare: CKC Medicare N.V.

Healthcare: Surinam Laboratories (Surlab) N.V.

14

2010 A YEAR IN REVIEW


15

In 010 considerable emphasis was put on improving the

operations of the various departments of the BergenDal

organization and on implementing routines for ongoing

maintenance. Great leaps forward were made for both.

BergenDal grew in two years into a mature organization.

The positioning of BergenDal received an enormous

boost in 010, particularly because several Dutch

newspapers and magazines published positive reviews

of the resort, and also as a result of the shooting of the

Dutch soap series “Goede Tijden, Slechte Tijden” (Good

Times, Bad Times), which aired on Dutch television in

Kersten Tourism Foundation (KTF)The construction of the Brokopondo Vocational training

Center (BVTC) will be completed in 011 and preparations

for a soft opening in July 011 are in full swing. BVTC is

poised to start operations in the third quarter of 011.

Along with training the first local teachers in hospitality,

a great deal of work has been done to create the required

management structure to ensure effective operations.

The district commissioner of Brokopondo will sit as head

of the board of the center, contributing to local accept-

ance and embedding a high degree of authority within

the ranks of the school. Although a great deal has been

achieved in 010, KTF is looking forward to 011 to raise

her profile and her level of contribution in the district of

Brokopondo and continues her commitment to poverty

alleviation and job opportunity creation in the region.

hospitality

In 010, Krasnapolsky prepared renovations, namely the

renovation of the fourth, fifth and sixth floors (rooms) and

the renovation / relocation of Popeyes 1. The renovation

of the floors will commence in May 011 and will last until

August 011.

The renovation of the floors is performed by Decorum.

Decorum took care of the interior design of Bergendal

Eco-Cultural River Resort in 008. The relocation of

Popeyes 1 from the first floor to the ground floor will

be completed in February 011. Krasnapolsky will also

renovate its central cooling system in 011. The renova-

tion projects of Krasnapolsky are budgeted at approxi-

mately USD 1,00,000.

December 010. In August 011 Bergendal will act as host

of Bergendal Flavors, an annual event. During this event

chefs from various countries will teach and follow classes

at BergenDal with an emphasis on the use of herbs from

the District of Brokopondo. Bergendal has become the

most professional and luxurious resort in the Guianas.

In a review published on Tripadvisor is stated with good

reason: “You’ll find nothing approaching the luxury

and svelte of Bergendal or anywhere else in the three

Guianas”.

Kersten Hospitality: CKC Hotelmaat schappij N.V. (Krasnapolsky)

Kersten Hospitality: BergenDal, Eco & Cultural River Resort N.V.

16

building a future annual report 2010

2010 A YEAR IN REVIEW

Argos produces cement for Panama Canal expansion in Pananma


1

In February 010 an agreement was signed between

C. Kersten en Co. N.V. and Cementos Argos S.A. This was a

turning point in the development of Vensur and Kersten.

As a well known multinational, Cementos Argos brings

in a lot of industry knowledge, expertise, know-how

and all the resources of a large multinational, while

Kersten brings to the table excellent knowledge of the

Surinamese market. Cementos Argos S.A. is the leader

of the Colombian cement industry with a market share

of 51%. It is the fourth largest cement producer in Latin

America with investments in Panama, Haiti, the Dominican

Republic, St. Thomas, St. Martin, Antigua and Dominica.

sharing the knowledgeJoint Ventures

Building & Construction: BEM

An analysis was made in 010 of the structural integrity

of the buildings / warehouses. The outcome was that the

warehouses of the pipe factory, the warehouse at Spanbeton

and the Conder warehouse had to be renovated. Besides

the necessary renovations, it was important to invest in

our staff. Therefore, all heavy equipment operators were

trained and certified. The weekly “safety talk” is still taking

place and the ‘housekeeping’ inspections take place every

month with different teams. The outcome of the inspections

are presented by the employees themselves, which results in

greater involvement of everyone. Through this joint effort, the

number of serious incidents in 010 remained limited to only 1.

As a result of the elections and the amount of projects granted

by the Ministry of Public Works, BEM went of to a flying start

in 010. The results were positive until the elections and even

above budget.

In the first half of the year the construction of the plant of a

competitor was completed. This factory went into production

from July 010 resulting in an oversupply in the market and

associated price war. For building blocks (solid 4” and solid

6”) in particular, which account for a large proportion of our

sales, the prices and gross margin plummeted. Average price

decreases amounted to on average 5%. To maintain our

It is the sixth largest producer of fluid concrete in the United

States and exports cement and clinker to countries.

The Joint venture allows Vensur to increase its production

capacity in the first year of the joint venture from 50,000

tonnes of cement per year to around 100,000 tonnes of

cement per year. By mid 011 Vensur will have a market

share of 50%, more than double its market share in 010.

In 011 the joint venture partners will develop strategies to

further increase the production capacity with export as a

serious option. With the joint venture Vensur has consoli-

dated its position as cement producer in CARICOM and

created opportunities to strengthen its position.

Building & Construction | Kersten and Cementos Argos S.A.: Vensur

18


market position, BEM had no choice but to follow this negative

price trend. After all, BEM and other producers were otherwise

running the risk of this competitor taking over the market.

In the second half of the year the government started to

default on its payments. This meant that most of the projects

in progress came to a standstill as of August, and orders

failed to materialize.

The combination of the above two developments had a

negative impact in the second half of the year.

In the meantime through our partnership with the Neal &

Massy Group in general and with PresTcon in particular,

we have identified new opportunities for both BEM and

Spanbeton. The activities of Spanbeton have been put on

hold.

Against the background of strong competition in the

market, we have to increase our sales and marketing activi-

ties. The intention is to participate again this year in the

Chamber of Commerce’s Fair and we will participate for the

first time in the “Woonbeurs” (Home and Living Fair).

Following the successful implementation of the reorgani-

zation program in 009 with a continuation in 010,

we confront the challenge of fierce competition with

confidence.

Algemene Installatie Maatschappij N.V., better known by

all as Alginco is part of the Kersten Building & Construc-

tion Division. Alginco is an installation company, special-

ising in indoor air quality control, electrical installations

and a range of other installation products from water

distribution to data networks.

In the year 010 Alginco set out to meet the challenge of

installing new generation products. Strengthened by a

year of intensive training and building of partnerships,

the time had come to implement the new approach in the

market. The first quarter was still a bit slow, but successful

and on time completion of several projects gained Alginco

a lot of momentum and resulted in a very busy second half

of the year. A strong base was developed to further propel

the company forward into success for the years to come.

In 011 Alginco’s main goal is to efficiently increase

capacity. This will be achieved by a combination of

measures, including HR developments, increasing and

transformation of stock and other improvements of the

internal organization. By working hard to offer continuity

and prosperity for the stakeholders Alginco strives to keep

filling in the true essence of its motto; “Alginco installs the

future”.

Building & Construction: Alginco

19

SNT Kersten N.V. is a joint venture between the largest

customer contact organization in the Netherlands, SNT

B.V. and C. Kersten en Co. N.V. The joint venture was in

fact started in August 010. By law, the joint venture will

be put into effect in the fourth quarter of 011.

The first customer of SNT Kersten is the Dutch mail order

company OTTO B.V. In 011, the portfolio of SNT Kersten

will be expanded. It is expected that at the end of 011

approximately 150 persons will find employment in this

joint venture. The organizational chart of Kersten shows

SNT Kersten as part of the Communication Services

Division.


Real Estate and Properties: CKC Warenhuis N.V. Since late 005 the Warenhuis building is leased to a third party while new plans for improving the commercial viability

of the real estate are being worked out.

NFD holds a 40 year lease on 5.4 hectares of the Belle

A Soir property, to be developed for affordable housing

with the IADB and De Surinaamsche Bank N.V. as partners.

The project, which is adjacent to the Richelieu project of

the Government of Suriname, was put on hold following

an assessment regarding the drainage situation of the

area. This requires substantial investments by the govern-

ment to guarantee a proper drainage of the total area.

Real Estate and Properties: Neptune Financiële Dienstverlening N.V. (NFD)

Kersten Warenhuis in the sixties of the last century.

Kersten Communication Services: SNT Kersten N.V.

0

Motors and Heavy EquipmentMotorsThe effects of the overall global economic crisis could still

be felt in 010. Importers of used vehicles have continued

the trend of importing more vehicles, so that the spurious

competition with official importers of more vehicles still

occurs, mainly for passenger cars (gray market).

In 010 there also was a dominance of so-called “import

duty-exempted” sales which resulted in less sales

compared to 009 although the number of units sold was

higher.

2011 prospectsWe have a positive outlook on the year 011.

The Mahindra Scorpio has made a good entry, despite

the unpopular design. The pick-up is found to be a good

workhorse and is sturdy, robust and comfortable.

Considering the price, the JAC is a very good alternative to

the second-hand pickup truck with a capacity over 1 ton.

Expectations are that JAC may experience some compe-

tition from the JMC-Isuzu pickup truck introduced by

Yokohama, which is also made in China. The tax-increasing

measures by the government will be clearly detrimental,

especially for the sale of large cars.

If the planned production increase of IAMGOLD comes

through, a sales increase of Toyota is expected.

In addition, the signing of the agreement with Newmont

will be positive for Toyota.

There is an opportunity for the Mahindra Scorpio to be

deployed at Suralco, replacing the Toyota Hilux vehicles

whose lease period expires.

The construction of the new showroom is well advanced

and will be ready for use in May 011. This will be the

Chevrolet sale room.

SurmacIt was expected that 010 would be a difficult year because

of the elections and that customers would not commit to

major investments.

As a result the machine sales were expected to remain far

behind those previous years.

The focus for 010 was for that reason on diversifying

our portfolio in terms of products, markets, regions and

customers and in particular on the penetration of the

small-scale mining market.

Besides providing funding for this group, the possibility of

1

Used Equipment was also offered while we made prepa-

rations to ad Rental solutions to our product offerings.

We have achieved our goals, to our satisfaction.

An important part of the machine sales were for used

machines and generators.

The slight increase of the parts sales compared to 009

was the result of the expansion of the outlets and of

acquiring the dealership of AK purifiers.

A new performance management system was imple-

mented in 010, as well as the marketing & sales depart-

ment. The Technician Career Development Program was

introduced to strengthen the service department, as well

as the technician apprentice program as part of our long

term service manpower planning.

Expected market developmentsWe expect, considering the continuous increase of

the international gold price, that the gold sector will

continue to grow.

The signs are on the wall that the oil and the forestry

sectors will also continue to grow, while growth perspec-

tives in the bauxite and construction sector are still

uncertain.

In 011 we will celebrate 0 years of dealership of Cater-

pillar, provide more financing solutions for the market,

acquire the DAF dealership and renovate and rebrand our

Nickerie offices.


CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

RevenueCost of saleGross profit

Other incomeTotal income

Employee benefit expensesDepreciation

Other operational expensesTotal expenses

INCOME FROM OPERATIONS

Financial incomeFinancial expenses

Net financial expenses

Share of profit of associates

Income before taxationIncome taxes

Profit from continuing operations

Discontinued operations

Profit (loss) from discontinued operations(net of income tax)Profit for the year

Profit attributable toEquity holders of the Company

Total comprehensive income attributable toEquity holders of the company

Non- controlling interestsTotal comprehensive income for the year

010

64.814.5464.54.08.460.508

810.1923.270.637

8.19.8644.401.951

10..6522.859.490

411.147

.0.41-.58.6

45.059

.088

693.294-615.09

1.309.003

5.665

1.561.668

1.561.6681.561.668

1.561.668

1.561.668

009

89.583.22161.85.00.0.14

46.9528.477.139

8.58.444.8.444

10..69823.159.585

5.317.554

58.089-.489.04-1.960.985

80.58

3.737.156-14.910

3.881.066

-41.140

3.839.926

3.839.926.89.96

.89.96

3.839.926

CONDENSED CONSOLIDATED STATEMENT

OF COMPREHENSIVE INCOME (IN USD)

4

ASSETS

Property, plant and equipmentIntangible assets

ReceivablesInvestment property

Deferred tax assetsOther financial assets

Total non-current assets

InventoriesTrade and other receivables

Income tax receivableOther current assets

Cash and cash equivalentsAssets classified as held for sale

Total current assets

Total assets

EQUITY AND LIABILITIES

EquityShare capital

Share premium reserveRetained earnings

Equity attributable to equity holdersNon-controlling interest

Total equity

LiabilitiesLoans and borrowingsDeferred tax liabilities

Employee benefitsOther liabilities

Total non-current liabilities

Loans and borrowingsTrade and other payables

Short term provisionsIncome tax liabilities

Other current liabilitiesLiabilities directly associated with assets classified as held for sale

Total current liabilities

Total liabilitiesTOTAL EQUITY AND LIABILITIES

12-31-10

45.10.989.16

1.019.81510.50

1.6.151.446.440

51.609.9

10.681.09710.16.5

11.004.594.058.98.616.59.9

40.131.316

91.740.545

18.1840.050

6.8.199.515.41

18.637.702.807

11.5.1510.5.44.10.00

15.00026.345.758

9.49.481.01.99

606.101.4

4.960.551 -

27.691.980

54.037.73891.740.545

12-31-09

49.06.69045.645

.004.48.85.641.191.886.441.840

58.50.80

9.079.09611.08.4

11.15.66.51.81.145.06.0

36.493.737

94.997.540

18.1840.050

8.15.518.95.6

98.939.882.696

18.450.08510.1.0.44.84

100.00033.026.657

6.105.89.116.941

491.641.455.0814.58.40.160.889

22.088.187

55.114.84494.997.540

CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL POSITION

(IN USD)

5

Income from operations (including discontinued operations)Adjustments for:

- Depreciation- Change in provisions

- Foreign exchange differencesChanges in working capital

- Inventories- Trade and other receivables

- Other current assets- Current loans and borrowings

- Trade and other payables- Other current liabilities

Cash generated from operationsInterest received

Interest paidIncome tax paid

Cash flows from operating activities

Net investments in property, plant and equipmentProceeds from sale of property, plant and equipment

In/decrease Investment PropertyNet investments in intangible assetsIn/decrease non-current receivables

Proceeds from disposals of investmentsIn/decrease non-current financial assets

Receipt of government grantCash flows used in investing activities

Release deferred tax in equityDisposal of partial interest in Vensur N.V.

In/decrease non-current loans and borrowingsIn/ decrease non-current liabilities

Dividends non-controlling interestsCash flows from financing activities

Net in/decrease of cash and cash equivalentsCash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

Cash and cash equivalents at end of year classified as assets held for sale

Cash and cash equivalents at end of year

010

66.81

4.6.1404.1888.006

-1.49.51.565.48-.841

.14.9595.40.59

-9.9514.590.91

9.00-.58.6-.4.81

10.399.754

-5.006.805..1

61.09-9.0

984.661.0.41

54.4081.6

1.374.422

-504.40-.4.69

5.000-.999.965

-10.694.204

1.079.9727.903.3898.983.361

-

8.983.361

009

5.6.41

4.1.956.86.8

.4.1-.89.501.145.665

481.99994.90

-1.440.0451.9.45

90.10-.489.04-.01.6848.261.787

-.80.4.94

- -96.981

-1.96.6051.5919.0

.05-3.983.802

- -4.51.00

- -0.4

-4.532.453

-254.4688.157.8577.903.389

.15

7.831.214

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (IN USD)

6

Corporate informationThe principal activities of C. Kersten en Co. N.V. and its

subsidiaries (together “the Group”) are:

• the trade in motor vehicles and heavy equipment

including parts;

• the production of and trade in medicines and other

healthcare products;

• the production of and trade in cement and concrete

products;

• the trade in air-conditioning, machine building, electronic

parts and systems;

• the leasing of land and buildings and

• hospitality and franchises.

Interest in joint venture Alexios N.V.On November 1, 008 a share purchase agreement between

the Company and Cementos Argos S.A., a corporation estab-

lished in Colombia has been signed. This agreement has

been settled on February 16, 010. The Company sold on that

date its ownership of 84.4% in Vensur N.V. to Alexios N.V.,

domiciled in Suriname. At the same date the Company sold

50% of the shares in Alexios N.V. to Corporaciones e Inver-

siones del Mar Caribe S.A.S, subsidiary company of Cementos

Argos S.A., domiciled in Medellín, Colombia.

The principal activity of Alexios N.V. is administering the

shares of Vensur N.V.

Due to the sale of the shares of Vensur N.V. in 010, the assets,

liabilities and results are proportionately consolidated in the

financial statements of the Group compared to full consolida-

tion in previous years.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Notes to the

Basis of preparationStatement of complianceThe consolidated financial statements for the year 010 have

been prepared in accordance with International Financial

Reporting Standards (IFRS) as issued by the International

Accounting Standards Board (IASB).

Basis of measurementThe consolidated financial statements have been prepared on

a historical cost basis, unless otherwise indicated.

Functional and presentation currencyThe Group’s functional currency is Suriname dollars (SRD),

with the exception of CKC Machinehandel Surmac N.V.

and Surmac International N.V. The SRD is the currency of

the primary economic environment in which the Company

operates. Each entity in the Group determines its own

functional currency.

From the year 010 the consolidated financial statements are

presented in United States dollars (USD) instead of SRD. This

change in presentation currency has been made to gain a

better insight in Kersten’s economic performance to the users

of the financial statements, which are mostly internationally

oriented. All values are rounded to the nearest USD except

when otherwise indicated.

Use of estimates and judgmentsThe preparation of financial statements require management

to make judgments, estimates and assumptions that affect the

application of accounting policies and the reported amounts of

assets and liabilities, income and expenses. Actual results may

differ from these estimates.

Good Times… in BergenDal

Estimates and underlying assumptions are reviewed on an

ongoing basis. Revisions to accounting estimates are recog-

nized in the period in which the estimate is revised and in

future periods affected.

Basis of consolidationThe consolidated financial statements comprise the financial

statements of C. Kersten en Co. N.V., its subsidiaries and its joint

ventures as at December 1 of each year.

Subsidiaries are fully consolidated, joint ventures are proportion-

ately consolidated from the date of acquisition, being the date

on which the Company obtains control, until the date of disposal

when such control ceases.

The financial statements of the subsidiaries and joint ventures

are prepared for the same reporting year as the parent company,

using consistent accounting policies. All inter-company balances

and transactions, including unrealized profits arising from intra-

group transactions, have been eliminated upon consolidation.

Changes in accounting policy and disclosuresFrom 1 January 010 the Company has applied the following

changes in accounting policy and disclosures:

• IFRS Business Combinations (008)

• IAS 4 Related Party Disclosure (009)

• IAS Consolidated and Separate Financial Statements

(008)

• Improvements to IFRSs 009

New standards not yet adoptedOther than those adopted early as explained above, a number

of few standards and interpretations are not effective for the

year ended December 1, 010, and have not been applied in

preparing these consolidated financial statements. None of

these will have an effect on the consolidated financial state-

ments of the Group.

Summary of significant accounting policies

Foreign currency transactionsTransactions in foreign currencies are translated to the

respective functional currencies of the Group’s entities at the

exchange rates on the date of the transaction.

Monetary assets and liabilities denominated in foreign curren-

cies at the reporting date are translated to the functional

currency at the exchange rate at that date.

Foreign currency differences are recognized in the consoli-

dated statement of comprehensive income.

Non-monetary assets and liabilities denominated in foreign

currencies that are measured in terms of historical cost in

a foreign currency remain translated into the functional

currency using the exchange rates as at the dates of the initial

transactions.

Non-monetary items measured at fair value in a foreign

currency are translated using the exchange rates at the date

the fair value was determined.

Non-derivative financial instrumentsThe Group only uses non-derivative financial instruments.

Non-derivative financial instruments comprise investments

in equity, securities, trade and other receivables, cash and

cash equivalents, loans and borrowings, and trade and other

payables.

Property, plant and equipment

Owned assetsUntil the adoption of IFRS, property, plant and equipment are

accounted at revaluated amounts. This value is considered as

property’s deemed cost as per the date of first-time adoption

of IFRS. Property is stated at cost less government grants and

depreciation.

8

Leased assetsAll leased assets are operational leases and are not recog-

nized on the Group’s statement of financial position.

Intangible fixed assetsIntangible assets with finite lives are amortized over

the useful economic life and assessed for impairment

whenever there is an indication that the intangible asset

may be impaired.

The amortization period and the amortization method for

an intangible asset with a finite useful life are reviewed at

least at each financial year end.

Investment propertyInvestment properties are measured initially at cost, including

transaction costs. The carrying amount includes the cost

of replacing part of an existing investment property at the

time that cost is incurred if the recognition criteria are met;

and excludes the costs of day to day servicing of an invest-

ment property. Subsequent to initial recognition, investment

properties are stated at cost less depreciation.

Other financial non-current assetsOther financial non-current assets are recorded at their

historical cost, being the values at which they were

acquired or lower realizable value.

InventoriesInventories are valued at the lower of average cost and

net realizable value.

Trade and other receivablesTrade receivables, which generally have 0 day terms, are

recognized and carried at original invoice amount less an

allowance for any uncollectible amounts.

the wayahead

9

Cash and cash equivalentsCash and cash equivalents in the consolidated statement

of financial position comprise cash at bank and in hand

and short-term deposits with an original maturity of less

than months.

Interest-bearing loans and borrowingsInterest-bearing loans and borrowings are measured

at amortized cost using the effective interest method.

Amortized cost is calculated by taking into account any

issue costs, and any discount or premium on settlement.

ProvisionsProvisions are recognized when the Group has an

actual obligation (legal or constructive) as a result of a

past event. It is probable that an outflow of resources

embodying economic benefits will be required to settle

the obligation and a reliable estimate can be made of the

amount of the obligation.

Pensions and other post-employment benefitsThe cost of providing benefits under the plans is deter-

mined using the projected unit credit actuarial valuation

method, with actuarial valuations carried out at each

year-end.

RevenueRevenue is recognized to the extent that it is probable that

the economic benefits will flow to the Group and the revenue

can be reliably measured.Net sales represent the invoiced

value of manufactured products and services delivered to

customers net of allowances and sales tax. Revenue is recog-

nized when the significant risks and rewards of ownership

of the goods have passed to the buyer and can be reliably

measured. Cost of sales is recorded in the same period as

sales are recognized.

Other revenues are recorded in the period in which they

originate.

ExpensesExpenses are determined based on the aforementioned account-

ing principles and allocated to the year to which they relate.

Income taxIncome tax expense comprises current and deferred tax.

Current tax and deferred tax are recognized in profit

or loss except to the extent that it relates to a business

combination, or items recognized directly in equity or in

other comprehensive income.

Current tax assets and liabilities for the current and

prior years are measured at the amount expected to be

recovered from or paid to the tax authorities.

The tax rates and tax laws used to compute the amount

are those that are enacted or substantively enacted at the

reporting date.

Discontinued operationsA discontinued operation is a component of the Group’s

business that represents a separate major line of business

that has been disposed of or is held for sale or distribu-

tion, or is a subsidiary acquired exclusively with a view to

resale. Classification as a discontinued operation occurs

upon disposal or when the operation meets the criteria to

be classified as held for sale, if earlier.

Consolidated statement of cash flowsThe consolidated cash flow statement is prepared using

the indirect method. Cash consists of current accounts with

banks and cash in hand. Payments of interest and income

taxes are included in cash flows from operating activities.

0

C. Kersten en Co. N.V. and our Strategic Partnerships


1

Risk Management and Internal Control

Our group Risk Management and Internal Control systems

are designed to provide reasonable assurance that the

Group’s business objectives are achieved. Our group Risk

Management and Internal Control framework is considered

in balance with our risk profile, although such systems can

never provide absolute assurance that material errors, losses,

fraud or violation of laws or regulations will not occur.

Risk profile and risk responsibilitiesManaging operational risk and other risks form an integral

part of the Group business operations. The Board of

Management of the Group is responsible for the design,

implementation and operation of the Group Risk Manage-

ment and Internal Control framework. The Board of

Management of the Group actively manages, to the extent

possible, the strategic, financial, compliance and operation-

al risks facing the Group.

Risk Management and Internal Control frameworkTo ensure risks are identified and managed and that objec-

tives are met in compliance with applicable law and regula-

tions, a risk assessment framework (RAF) is in place. This

control framework is based on policy documents, standards

and procedures. The main elements of the control

framework, our control activities, and monitoring into our

business practices are:

Company objectivesCompany objectives form the basis risk for the group Risk

Management and control framework. They are formulated

and communicated to the organization by the Executive

Board. All operating companies must operate in accordance

with these objectives. The company objectives are reviewed

at regular intervals and amended where necessary.

Risk evaluation and monitoringA risk management infrastructure is in place, which includes

periodical risk identification reviews and trough plan of the

Group. Our business strategy is regularly evaluated by the

Board of Management, Audit Committee and the Supervisory

Board; this also includes financial strategic, compliance and

operational risks.

Code of ConductOur Code of Conduct is based on Kersten’s core values. It

is intended to help each employee understand and follow

relevant compliance and integrity rules, and know when to

ask for advice.

Good timing… Dutch Soap TV serie at BergenDal

Planning and control cycleStrategic plans, budgets and forecasts are prepared at fixed times

during the year for all entities of the Group. Financial results and

other key performance indicators are reviewed monthly.

Accounting and reporting instructions The accounting and reporting instructions consist of instruc-

tions and guidelines for management reporting and external

financial reporting.

Healthy, Safety and EnvironmentKersten’s framework for Environmental, Health and Safety

includes policies, standards, which are in compliance with the

Inter-American Development Bank (IADB) Environmental and

Social Requirements and meeting World Bank HSE standards,

guidance materials, tools and activities to support and assist their

operating companies who manage environment, health and safety

at their sites and throughout key Kersten’s business operations.

Information management and security measuresInformation management is decentralized at Operating

Company level. At Holding level coordinating measures and

instructions are issued to assure univocal approach of infor-

mation management and security measures. Information

management and security measures.

InsuranceThe insurance policy covers risks resulting from property

damage, business interruption, employers’ liability and a

number of other specific risks. The insurance risk process and

monitoring for all Operating Companies is managed centrally

by C. Kersten en Co. N.V.

Internal AuditThe Internal Audit Department carries out operational audits

for the main Operating Companies based on the yearly Audit

Plan. The Audit Plan is based on the risk profile of Kersten.

Audit CommitteeThe role of the Audit Committee is to advise the Board of Directors

regarding internal control affairs based on the reports of the

Internal Auditor and its own observation.

Subsequent eventsPartnership Neal & Massy GroupIn 010 C. Kersten en Co. N.V. started a partnership with the

Neal & Massy Group by signing a Letter of Intent.

Neal & Massy Group is the largest publicly traded conglomerate

in the English-speaking Caribbean with over 80 years of experi-

ence. As of 011 the partnership with Neal & Massy Group will

enhance regional integration. It will also maximize the local

content from upcoming investments in Suriname by integrat-

ing a larger part of the private SME sector in the energy and oil

sector and thus promote productivity through industry clusters

and local development. Mining and energy are identified as

primary vehicles of development for the coming years.

Parnership SNT Nederland B.V.In 010 C. Kersten en Co. N.V. and SNT Nederland B.V., a

company domiciled in Zoetermeer, The Netherlands started a

joined venture (SNT Kersten).

SNT Nederland B.V. is the longest serving Dutch contact center

facility, founded in 1985 and an expert in call center services

and multi-channel customer call handling, both inbound

and outbound. This is done from their or at the customers’

location. With their services they help clients to build and

maintain effective contact with their (potential) customers.

SNT Nederland B.V. is one of the top in the outsourcing

industry and makes an important contribution to the profes-

sionalization and improvement of the call center industry.

Activities started in January 011 and the principal activities

of the SNT Kersten are focusing on inbound call handling.

The joint venture is doing the call handling for clients of SNT

Nederland B.V.

Change of group functional currency as of January 1, 2011As part of the continually Risk Management process, manage-

ment of C. Kersten en Co. N.V. evaluates the own business

periodically.

Based on the evaluation, management decided to change both

functional and reporting currency from Surinamese Dollar

into US Dollar in order to meet IFRS. The annual financial

statements for the year 010 are reported in US Dollars and

from January 1, 011, the functional currency of the Kersten

group is USD.

Independent Auditor’s report

To the shareholders and board of C. Kersten en Co. N.V.

We have audited the consolidated financial statements of C. Kersten en Co. N.V. and its subsidiar-

ies (the ‘Company’) for the year ended December 1, 010, from which these condensed consoli-

dated financial statements consisting of the condensed consolidated statement of financial

position, the condensed consolidated statement of comprehensive income, the condensed

consolidated statement of cash flows and explanatory notes on page up to and including page

were derived, in accordance with International Financial Reporting Standards.

In our auditors’ report dated April 18, 011 we expressed an unqualified opinion on those consoli-

dated financial statements from which these condensed consolidated financial highlights were

derived.

In our opinion the accompanying condensed consolidated financial highlights as of December 1, 010

are consistent, in all material respects, with the consolidated financial statements from which they

have been derived.

For a better understanding of the Company’s financial position and the results of its operations

for the period and of the scope of our audit, the condensed consolidated financial highlights

should be read in conjunction with the consolidated financial statements from which they have

been derived and our auditors’ report thereon.

Suriname,

April 18, 2011 KPMG Assurance Services N.V.

V.T.M. Bergisch RA

4

BUSINESS PERFORMANCE 2010General Change in presentation currencyFrom the year 2010 the consolidated financial statements are presented in United States dollars

(USD) instead of Suriname dollars (SRD). This change in presentation currency has been made to gain

a better insight in Kersten’s economic performance to the users of the financial statements, which

are mostly internationally oriented. Figures of preceding years have been recalculated in United

States dollars for comparison purposes.

Interest in joint venture Alexios N.V.On November 12, 2008 a share purchase agreement between the Company and Cementos Argos

S.A., a corporation established in Colombia has been signed. This agreement has been settled on

February 16, 2010. The Company sold on that date its ownership of 84.24% in Vensur N.V. to Alexios

N.V., domiciled in Suriname. At the same date the Company sold 50% of the shares in Alexios N.V.

to Corporaciones e Inversiones del Mar Caribe S.A.S, subsidiary company of Cementos Argos S.A.,

domiciled in Medellín, Colombia.

The principal activity of Alexios N.V. is administering the shares of Vensur N.V.

Due to the sale of the shares of Vensur N.V. in 2010, the assets, liabilities and results are propor-

tionately consolidated in the financial statements of the Group compared to full consolidation in

previous years.

Results of OperationsSalesConsolidated sales in 2010 were almost USD 64.8 million compared to USD 89.6 million in 2009.

The decline in sales of USD 24.8 million or 27.7% is caused by the decrease in sales of Heavy

Equipment, the dominance of import-duty exempted sales in the sales levels of Motors and

the proportional consolidation of Vensur. In 2010 all operating companies, with the exception

of Surmac and Vensur, realized higher sales, EBITDA and pre-tax results compared to 2009.

Sales USD (million)

2010200920082007

70.2 93.9 89.6 64.8

5

Cost of Goods Sold (COGS)COGS, as a percentage of total sales, slightly decreased from 69% to 65.%. The improvement

in the Cost of Goods Sold resulted from the change in the composition of the package of goods

and services sold and increased competition.

COGS/Sales (in %)

2010200920082007

67.3 69.6 69.0 65.3

Other operating incomeOther operating income, which includes lease income from third parties, revenue on fixed

assets sold and mooring vessels stabilized to USD 0.8M.

Employee benefit expensesEmployee benefit expenses slightly decreased to USD 8.M compared to 009 USD 8.6M due

to proportional consolidation of Vensur and higher cost efficiencies. The average number of

employees (in FTE) decreased from 561 in 009 to 59 in 010.

Employee benefit expenses in USD per employee

2010200920082007

11,847 14,187 15,300 15,250

DepreciationDepreciation increased slightly from USD 4.M in 009 to USD 4.4M in 010.

Selling, General, Administrative and Other Expenses (SG&A)Due to tight cost control, SG&A expenses were stable at USD 10.M. In terms of percentage of

sales, SG&A increased due to the mainly fixed character combined with the decrease of sales.

6

BUSINESS PERFORMANCE 2010

SG&A/Sales (in %)

2010200920082007

11.8 10.8 11.4 15.8

Total operating expensesTotal operating expenses slightly decreased by USD 0.M to USD .9M in 010.

Net operating profit marginIn 010, the net operating profit margin substantially decreased compared to previous years due to the

decreased sales and the fixed character of expenses. The decrease was deteriorated by the situation on

the Suriname foreign exchange market that led to positive exchange differences on transactions. These

exchange difference are presented as financial income. As a result, the net operating profit margin was

negatively impacted by approximately 1.%.

Operating profit margin/Sales (in %)

2010200920082007

7.2 6.8 5.9 0.6

Net financial expensesFinancial expenses slightly decreased in 010 from USD .5M to USD .M due to the amortization of the

Consortium loans.

Financial income increased by USD 1.8M to USD .M due to the sale of the 50% interest in Vensur (USD

1.0M) and the increase of exchange rate differences (USD 0.8M). In 010 the Interest Coverage Ratio

decreased to 4. times compared to 5.1 times in 009.


Income taxesKersten is a local company based on the legislation in Suriname and is an independent taxpayer only

for the corporate income. All the subsidiaries included in the consolidated financials of Kersten are also

independent taxpayers. As a consequence hereof no income tax is due on the consolidated income,

other than income tax based on the individual corporate results of the individual companies.

Net incomeNet income as a percentage of sales developed as follows:

Net income/Sales (in %)

2010200920082007

4.2 4.0 4.3 2.4

Operating efficiencyThe Cash Conversion Cycle slightly improved from 59 to 54 days.

The accounts receivable cycle increased from days to 54 days due to an agreement for longer terms

of payment with some major customers. Furthermore in some divisions longer payment terms were

granted as a penetration strategy.

The inventory cycle increased from 65 to 85 days due to a higher level of inventory in 010, mainly

consisting of heavy equipment meant for rental and parts kept to guarantee a certain service level for

customers.

The accounts payable cycle increased from 9 to 85 days due to the fact that the higher level of

inventory is financed through facilities from the suppliers involved.

8

Balance Sheet Summary

AssetsNon-current assetsProperty, plant and equipment decreased by USD .9M. Investments amounted to USD 5.0M including

the proportional consolidation of Vensur. Assets that are expected to be sold within the next year,

amounting to USD 4.6M were transferred to “assets held for sale”. Furthermore depreciation amounted

to USD 4.M.

Receivables decreased by USD 1.0M due to amortization.

Investment property decreased by USD .4M due to a transfer to “assets held for sale”.

Deferred tax assets increased by USD 0.5M and relate to income taxes regarding losses which are

carried forward.

Current assetsInventory increased, mainly due to heavy equipment meant for rental and higher parts levels.

Trade and other receivables slightly decreased by USD 0.8M. Trade receivables increased USD 0.8M,

while other receivables decreased by USD 1.6M due to amortization of a loan granted.

Other current assets increased by USD 0.9M due to the remaining amount from the partial sale of

Vensur. The amount is due after all legal obligations regarding the transaction are fulfilled.

Cash and cash equivalents increased by USD 1.M to USD 9.0M in 010.

Assets classified as “held for sale” regard assets that are expected to be sold within the next year.

The share purchase agreement between with Cementos Argos S.A. has been settled in February 010.

In the next year assets amounting to USD 6.5M are expected to be sold.

9

Equity and LiabilitiesCapital structureCapital structure was further strengthened. The leverage position, as measured by the Total Non-current Liabilities to

Tangible Net Worth ratio, decreased significantly from 8.8% at year-end 009 level to 69.9% at the end of 010.

EquityEquity decreased by USD .M. Equity attributable to shareholders decreased by USD 1.4M, being the balance of

the dividend of USD .0M paid to the shareholder and the addition of the result for the year 010 of USD 1.6M.

Non-controlling interest regards the minority share of third parties in Vensur. Due to the partial share and the loss for

the year 010, a decrease of USD 0. was realized.

Non-current liabilitiesLoans and borrowings decreased by USD .M due to regular amortization. Furthermore in 010 a mandatory prepay-

ment under the existing loan agreement took place originating from the partial sale of Vensur and other fixed assets.

An amount of USD .4M is expected to be repaid in 011 relating to assets held for sale and was transferred to current

liabilities. Other non-current liabilities slightly increased by USD 0.5M.

Current liabilitiesLoans and borrowings increased by USD .M including the above mentioned expected mandatory prepayment

regarding assets held for sale. Bank overdrafts increased by USD 0.9M to USD 5.6M as a result of credit facilities for

heavy equipment received by suppliers.

Income tax liabilities decreased as a result of lower taxable profit for the year 010.

Liabilities directly associated with assets held for sale decreased to nil due to the settlement of the share purchase

agreement with Cementos Argos S.A. in February 010.


40


Statement of Consolidated Cash Flows SummaryCash flows from operating activitiesNet cash from operations was USD 10.4M in 010 compared to USD 8.M in 009. The cash flow

in 010 was positively influenced by tighter working capital management. The cash flow in 009

was negatively influenced by the first adoption of IFRS’s.

Cash flows from investing activitiesIn 010 the cash flows from investing activities were positively influenced by USD 6.5M due to

the transfer of property, plant and equipment and investment property to assets held for sale

and the amortization of long term receivables by USD 1.0M.

Investments amounted to USD 5.0M.

Cash flows used for financing activitiesIn 010 cash flows used for financing activities was negative due to the repayment of the

Consortium loan, the partial sale of Vensur and the payment of dividend.

Net cash flow can be specified as follows:

-15

-10

-5

0

5

10

15

20financing activities

net cash flow

investing activities

operating activities

2010200920082007

(USD million)

-10.7

11.2

8.3

10.4

-6.2

-14

-4

1.41.4

2.9

-0.2

1.1

18.3

5.7

-4.5

-10.7

41

Headoffice C. Kersten en Co. N.V. Building constructed around 1875.


4

ABOUTC. KERSTEN EN CO. N.V.

Our Mission: Being the best through business excellence while creating sustainable long term value for our shareholders and at the same time maintaining a moderate risk profile, with due regard for the environment, the health and safety of our employees and the cultural heritage of Suriname.

Our Vision: Being the best and rapid growth accompanied by the best creation of value.

Supervisory BoardMr. David Voûte, Chairman

Mrs. Annemarie Hiralal-Norden, Member

Mr. David Roth, Member

Mr. Johan Stam, Member

Mr. Hugo Fernandes Mendes, Member

Mr. A. Pixley Sinclair, Member

Board of DirectorsMrs. Shirley Sowma-Sumter, Chief Executive Officer

Mr. Richard Tjon A Joe, Chief Operations Officer

Mrs. Shirley Sowma-Sumter, Acting Chief Financial Officer

Mr. Antoine Brahim, Chief Commercial Officer


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DIVISION STRUCTURE & BUSINESS ACTIVITIES

1. Building & Construction (Division Manager: Mr. Antoine Brahim)

1. CKC Bedrijven Exploitatie Maatschappij N.V. (BEM) Production of concrete products

2. Algemene Installatie Maatschappij (Alginco) N.V. Electro-technical-, air-condition-,

machine building, electronic parts and systems sale, installation and finance

3. Vensur N.V. Cement production

4. Spanbeton N.V. Production of pre-stretched concrete plates

2. Real Estate & Properties (Division Manager: Mr. Richard Tjon A Joe) 5. CKC Warenhuis N.V. Lease of real estate

6. Neptune Financiële Dienstverlening N.V. Financial Services

3. Motors & Heavy Equipment (Division Manager: Mrs. Shirley Sowma-Sumter)

7. CKC Motors Company N.V. and subsidiaries Automotive sales, rental, lease and financing

8. CKC Machinehandel Surmac N.V. Sale, product support, rental, lease and financing of construction,

agriculture and mining equipment, diesel and natural gas engines, and industrial gas turbines

4. Healthcare (Division Manager: Mr. Glenn Wormer)

9. CKC International Commodities (Incom) N.V. Trade in medicines, medical supplies and

medical equipment as well as consumer products

10. Surinam Laboratories (Surlab) N.V. Production and trade of chemical products

11. CKC Medicare N.V. Healthcare Services

5. Hospitality (Division Manager: Mr. Richard Tjon A Joe)

12. CKC Hotel Maatschappij (Krasnapolsky) N.V. Hotel operation and Franchises

13. BERGENDAL, Eco & Cultural Resort N.V. Eco Resort and Adventure Center

6. Kersten Communication Services (Division Manager: Mr. Richard Tjon A Joe)

14. SNT Kersten N.V. Communication Services

7. Holding Services (Division Manager: Mrs. Shirley Sowma-Sumter)

15. N.V. Handelmaatschappij S.M. Levie Registration of trademarks and intellectual property

Annual Kersten 2011

Documents

Transcript of Annual Kersten 2011