Limagrain essentials in 2015
CONTENTS Page 04 Our PROFILE Page 06 Our KEY FIGURES Page 08 Our ACTIVITIES Page 10 Our GOVERNANCE Page 12 Our BUSINESS Page 14 Our MISSION DESIGNED AND WRITTEN BY: Limagrain Corporate Communication and Public Relations Department DESIGNED, CREATED AND PRODUCED BY: R.C.S 352 321 285 Clermont-Ferrand 04 73 28 20 20 PRINTED BY: 10-31-1490 - Colorteam TRANSLATED BY: Métaform-Langues PHOTO CREDITS: Vincent Bouchet, Jérôme Chabanne, Denis Pourcher, Pierre Soissons, Limagrain Photothèque and its subsidiaries, Limagrain Céréales Ingrédients Photo library: Mike English & Michael Powell. 2
Jean-Yves FOUCAULT Chairman of Limagrain Daniel CHÉRON CEO of Limagrain 2015 demonstrated, once again, the relevance of our long-term vision. We have pursued in a determined way the implementation of our strategic orientations, by strengthening our investment in research, emphasizing the internationalization of our activities and consolidating our local development in the original region of our Cooperative. In vegetable seeds, the acquisition of Tropdicorp enabled us to significantly consolidate our operations in Asia. In corn seeds, following the finalization of our joint venture agreement in China, we are now active in all major markets worldwide. We also strengthened our investment in transgenesis through Genective, and the licensing agreements recently signed with Syngenta will allow us, in the coming years, to develop and distribute a wholly-owned range of GM traits for corn. In wheat seeds, we added to our international network by creating a joint-venture in research and taking a stake in Canterra Seeds in Canada. Today, the leaders in seeds are repositioning themselves. We need to view these turbulent times as windows of opportunity for us as we continue to pursue our strategy in line with our long-term vision. As for cereal products, we have to pursue the internationalization of Limagrain Céréales Ingrédients and develop our Brossard and Jacquet brands outside France, especially by making its recent establishment in Brazil a success. This strengthening of our ingredients and bakery products chains is crucial in order to continue to guarantee greater added value for our farmer members production than what chaotic world markets impose. Our priority is to better meet the expectations of our farmer members and we aim to continuously improve the quality of our cooperative s supply. 2015 was also an opportunity to celebrate Limagrain s 50 years and to take stock of the path we have followed, beginning from a small Cooperative in Auvergne in 1965 to become the 4 th largest seed company worldwide today. True to our values of progress, perseverance and cooperation, we remain unique: a cooperative group founded and managed by French farmers which, with all of its employees throughout the world as well the Cooperative s farmer members, intends to pursue history with determination and enthusiasm. The future continues now! Jean-Yves Foucault Daniel Chéron Deputy CEO since April 2013, Jean-Christophe JUILLIARD was appointed CEO of Limagrain by the Board of Directors on December 14, 2015. Trained at the ESTP engineering school, ESSEC and INSEAD, he has held various responsibilities within functional, operational and general corporate departments, in France and internationally, most notably in the agri-food domain. 3
Our PROFILE An international agricultural cooperative group Specialists in seeds and cereal products, we carry out our activities from Auvergne, the original land of our parent company, the Limagrain Cooperative, which brings together close to 2,000 farmer members. CEREAL PRODUCTS Cereal Ingredients Wheat and corn semolinas and flours, cereal-based texturing agents, functional flours, food fibers, bioplastics For the agri-food industry and plastics industrialists Bakery Products Sandwich loaves, specialty breads, crisp breads, pastries For large retailers, the general public and the agri-food industry LIMAGRAIN COOP Plant production, advice and distribution For farmers, the agri-food industry and consumers 4 th largest seed company worldwide No. 1 French industrial baker 4
FIELD SEEDS Corn, wheat, sunflower, rapeseed, etc. For farmers VEGETABLE SEEDS Vegetable Seeds Tomato, melon, pepper, carrot seeds, etc. For growers and canners European leader for functional flours Garden Products Vegetable and flower seeds, amenity grass seeds and flower bulbs For distribution and the general public 5
Our KEY FIGURES A developing group From July 1, 2014 to June 30, 2015, Limagrain posted an increase in sales of 5.6% on a like-for-like basis, in spite of a varied context depending on the activity and an unfavorable market environment. This situation reveals, once again, the relevance of our strategy, especially in terms of investment in research and innovation, as well as international development. Close to 2.4 billion Euros in sales * Field Seeds 51% Vegetable Seeds 26% Garden Products 3% Cereal Ingredients 3% Bakery Products 14% Limagrain Coop 3% 74% of sales made internationally * 79 million Euros net income Subsidiaries spread throughout 55 countries* * Figures for the overall scope of activity worldwide, taking into account data from the companies AgReliant, AGT, Genective, Seed Co and Soltis. 6
A GROUP THAT INNOVATES A FRENCH GROUP OPEN TO THE WORLD 14.6% of professional sales dedicated to research, that is, 241 million Euros * More than 2,100 employees More than 9,600 in research * employees * Europe 60% Americas 20% Asia et Pacific 12.5% Africa and Middle East 7.5% Close to 120 research stations in the world * Close to 300 varieties created and marketed ** More than 70 nationalities * A RESPONSIBLE GROUP 100% of Top Executives trained in the Code of Conduct and business ethics ** ** IFRS Figures More than 120,000 hours of training conducted ** More than 75% of activities covered by a quality management system ** For more information see limagrain.com 7
Our ACTIVITIES A year marked by a complex environment Our organization into fourteen Business Units enables us to be as close as possible to our markets. This proximity is the basis for our performance. LIMAGRAIN COOP FIELD SEEDS VEGETABLE SEEDS The Limagrain Coop activity made sales of 215 million Euros, with the inclusion of business conducted with the Group s Field Seeds and Cereal Products companies. An increase of 7.5% compared to the previous fiscal year, its results point to the activity s resilience, in spite of a year affected by difficult climatic conditions (with, as a result, lower quality harvests in 2014) and low commodity prices in corn and wheat. The solidarity among the integrated chain s Business Units made it possible to confront the challenges with an excellent capacity to innovate in order to bring maximum added value to the harvests. The Field Seeds activity made sales of 1,212 million Euros. In spite of an unfavorable market context, combining several factors such as the decrease in corn acreage, the drop in agricultural raw material prices and the crisis in Ukraine and Russia, the activity, overall in line with market trends, was able to consolidate its sales positions. For the fiscal year, the Vegetable Seeds activity made sales of 615 million Euros. Within a favorable environment, the activity was able to grow at a higher rate than the market by gaining market share in key geographic areas, especially on the American continent, and developing strategic crops (tomato, melon and bean in particular). These results reflect Vegetable Seeds remarkable performance and have reinforced Limagrain s position as No. 2 worldwide. Figures for the overall scope of activity worldwide, taking into account data from the companies AgReliant, AGT, Genective, Seed Co and Soltis. 8
GARDEN PRODUCTS CEREAL INGREDIENTS BAKERY PRODUCTS The Garden Products activity made sales of 58 million Euros. In spite of a market in decline, Vilmorin Jardin gained market share in France and in exports, most notably in Poland, and succeeded in maintaining its position as European leader in seeds for home gardeners. Cereal Ingredients ended the fiscal year with sales of 103 million Euros, taking into account activities conducted with the Group s companies. Because poor climatic conditions impacted the wheat and corn harvests, Limagrain Céréales Ingrédients relied on the collective intelligence of the integrated chain and demonstrated an excellent capacity to innovate in order to meet its customers needs. The strategy paid off and enabled it to affirm its position as a major player on the snack, bread processing, breakfast cereal and readymade meal markets. This past fiscal year the Bakery Products activity made sales of 308 million Euros. Its business grew by 2% and thus reinforced its position as the No. 1 French industrial baker. This was a remarkable performance given the price-war context and the fact that major large retailers joined forces. For more information see limagrain.com 9
Our GOVERNANCE A group created and directed by farmers Our Group draws its strength from its cooperative roots. Its governance is unprecedented among international seed leaders. Our parent company, the Limagrain Cooperative, puts its principles of a company of people at the service of the Group and the development of its activities. Our shareholders are composed of the Cooperative s farmer members. A company of people and not of capital, which practices an original model of governance: - a democratic operation based on the principle of one person = one vote ; - a tandem of elected farmer Chairman and salaried CEO; - this tandem principle is reproduced within our six operational activities* throughout the world. As an agricultural cooperative, we have a responsibility to be the high performance and sustainable extension of our members farms and to contribute to the future of agriculture and our agri-food chains. We are therefore not guided by shortterm actions but seek to build for the long term, while being careful to combine local anchoring with international development. * Limagrain Coop, Field Seeds, Vegetable Seeds, Garden Products, Cereal Ingredients and Bakery Products. 10
Working for a company of people means allowing the general interest to be expressed every day rather than more individualistic or financial interests. As the Chairman of the Cooperative and a farmer, I see myself as a usufructuary, or someone who has the right to use and enjoy the fruits of the company but does not own it. It also means I am fully committed to this model, which focuses on the stability of capital and the continuity of our strategic vision, and which chooses to re-inject much of its profits in order to prepare for the future. Jean-Yves FOUCAULT Chairman of Limagrain THE STRENGTHS OF OUR GOVERNANCE Supported by the stability of our shareholders, we have a long-term strategic vision and can thus align our economic performance with the long term. Our Group is managed by farmers, members of the Cooperative: a characteristic that ensures legitimacy and trust among all our stakeholders and intimately connects us to our region. A culture of cooperation permeates the entire Group: it is shared by our farmer members and employees and extends to our scientific, industrial and commercial collaborations throughout the world. For more information see limagrain.com 11
Our BUSINESS From plant genetics to cereal products From our core business of seeds, we develop innovative and responsible solutions intended to improve plant production and cereal products: expertise in plant breeding; integrated chains in semolina corn and cover wheat varietes to produce cereal ingredients, breads and pastries. RESEARCHING TRAITS in the genetic resources of plants BREEDING varieties PRODUCING AND SELLING seeds 12
OUR GOAL: TO ANTICIPATE AND MEET THE EXPECTATIONS OF CUSTOMERS AND SOCIETY Farmers / Growers Better yield Improved qualities Resistance to viruses, diseases, insects Adaptation to climates, soils, etc. Industrialists / Distributors Preservation Calibration Adaptation to industrial processes Aptitude for baking bread ans pastries, etc. Consumers Appearance Taste and flavor Nutritional value Value for money Food safety, etc. PRODUCING cereals TRANSFORMING cereals DISTRIBUTING ingredients and bakery products For more information see limagrain.com 13
Our MISSION Moving agriculture forward to meet food related challenges Through our cooperative governance, our activities and our commitments, we want to move agriculture forward and contribute to the future of farmers. We work alongside farmers to find solutions to meet food needs: - to produce more, to feed more than 9.6 billion people in 2050; - to produce better, to save resources, reduce the use of inputs and improve the nutritional qualities of products. INNOVATING ALLOWING ACCESS TO PROGRESS We believe that there is no sustainable agriculture without innovation. We innovate to insure our competitiveness and to contribute to meeting the challenges of the 21 st century. We know that accessibility to diverse genetic resources has always been the foundation for plant innovation. It is for this reason that we want to protect plant breeding while also encouraging access to genetic progress. A FEW EXAMPLES OF OUR INNOVATIONS: 1 - Variety innovation After six years of research, Vilmorin launched the tomato Fusion on the Brazilian market. This innovative variety is grown in open fields and resists Fusarium 3, a soil disease that greatly affects Brazil. The tomato Fusion is perfectly adapted to tropical zones and today represents 90% of the market in areas affected by Fusarium. 2 - Innovation in processes and products Thanks to its high performance research methods in cereals, Limagrain offers products better adapted to new consumer trends: recipes that are palm-oil-free, additive-free and even gluten-free. 3 - Innovation in agricultural production systems In the area of precision farming, Limagrain Coop developed, for the Cooperative s farmer members, Limagine Decision, an innovative solution to guide growing from sowing to harvesting. Limagine correlates meteorological information with the data recorded by the farmer, thus helping him to manage, analyze and anticipate the progress of his crops and make the best decision at the best time. 14
OUR VALUES Progress Progress is at the heart of our mission. Believing in progress is reflected in a continuously supported ability to innovate. Our vision involves responsible progress. Perseverance We are a seed company and this business requires tenacity and patience: it takes 7 to 10 years to develop a variety. This perseverance can also be found in our long-term vision and in the consistency related to our strategic orientations. Cooperation We are a company of people. Cooperation is part of our DNA and we favor diversity over a global approach to development. RESPECTING AGRICULTURAL DIVERSITY PROMOTING THE REGULATION OF AGRICULTURAL MARKETS INTERNATIONALLY For Limagrain, encouraging the coexistence of all forms of agriculture, whether conventional, organic or genetically modified, and adapting to the various types of agriculture in the world, is in line with a balanced vision of sustainable development. We are convinced that all human efforts need to be combined and all technological improvements should be implemented in order to meet the production and food security challenges populations are facing today. Everywhere, agricultural prices are fluctuating to a degree that no other economic segment could support over the long term. This volatility is a serious threat to the continuity of farmers. The world is sliding towards financialized agriculture without farmers, which operates through economic, environmental and social dumping; and which destabilizes all local and family agriculture. We seek to defend all farmers throughout the world and all types of agriculture through momagri, an organization we helped to create. www.momagri.org For more information see limagrain.com 15
To learn more, please see all of our articles and videos at Limagrain.com limagrain.com HEAD OFFICE: Biopôle Clermont-Limagne rue Henri Mondor 63 360 Saint- Beauzire France MAILING ADDRESS: CS 20 001 F-63 360 Gerzat Tel. +33 (0)4 73 63 40 00 Fax +33 (0)4 73 63 40 44 limagrain@limagrain.com www.limagrain.com #Limagrain