OCTOBER, 2018 1
DISCLAIMER Some of the statements contained in this document may be forwardlooking statements concerning Vilmorin & Cie SA's financial position, results, businesses, strategy or projects. Vilmorin & Cie SA considers that such statements are based on reasonable assumptions but cannot and does not give any assurance that the Group's future performance will be consistent with those statements. Actual results could differ from those currently anticipated in such statements due to a certain number of inherent risks and uncertainties, most of which are beyond Vilmorin & Cie SA's control, such as those described in the documents filed or to be filed by Vilmorin & Cie SA with the French securities regulator (Autorité des marchés financiers) and made available for downloading from the Company's website: www.vilmorincie.com 2
AGENDA VILMORIN & CIE AT A GLANCE s. 04 VILMORIN & CIE GROWTH STRATEGY s. 11 SALES FOR THE FISCAL YEAR 2017-2018 s. 22 OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018 s. 35 VILMORIN & CIE ON THE STOCK EXCHANGE s. 37 SCHEDULE AND CONTACTS s. 40 APPENDICES s. 44 3
VILMORIN & CIE AT A GLANCE 4 4
VILMORIN & CIE AT A GLANCE VILMORIN & CIE, 4 TH LARGEST SEEDS COMPANY IN THE WORLD Fourth largest seeds company in the world with leading positions on its core activities N 1 in Europe for straw cereals (1) N 2 worldwide for vegetable seeds N 3 in North America for corn seeds N 4 in Europe for corn seeds Pure player built up on historical expertise in botany since 1743 and on the basis of real proximity with the agricultural world A long-term vision of the development, strengthened by the consistent support of its reference shareholder, Limagrain, an international agricultural cooperative group (1) Wheat and barley 5
VILMORIN & CIE AT A GLANCE A FULL CONTROL OF ALL STAGES IN SEEDS BUSINESS ANALYZING NEEDS A 7 TO 10 YEARS CYCLE COLLECTING GENETIC RESOURCES CREATING NEW SEEDS PRODUCING SEEDS AROUND 300 VARIETIES LAUNCHED PER YEAR DISTRIBUTING AND SELLING SEEDS 6
VILMORIN & CIE AT A GLANCE Eureka Seed / USA A SOLID TRACK RECORD In M BSF/Genesis/Trigen/ Trio Research / USA Su Tarim / Turkey Link Seed / South Africa Bisco Bio Sciences / India Century Seeds / India Seed Co / Africa (*) Seed Asia / Thailand Shamrock / USA and Mexico Canterra Seeds / Canada(*) Hengji Limagrain Seeds / China (JV) Golden Acres / USA Meza Maize / USA Brasmilho Sementes Guerra / Brazil Tropdicorp/Vietnam Genica Research / USA Field Seeds acquisition Vegetable Seeds acquisition 2000 1800 1600 1400 1200 1000 800 600 400 Integration of European and US field seeds 494 43.8 939 54.8 897 44.3 1 002 1 064 53.0 54.1 1 192 29.3 61.7 1 338 80.6 1 472 1 500 1 531 1 269 99.4 84.1 72.9 1 627 1 325 59.3 1 715 1 414 86.9 140 120 100 80 60 40 200 20 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 0 7
VILMORIN & CIE AT A GLANCE A BUSINESS ORGANIZATION CLOSE TO THE MARKETS : KEY FOR SUCCESS VEGETABLE SEEDS FIELD SEEDS GARDEN PRODUCTS VEGETABLE GROWERS FARMERS MARKET GARDENERS 3 BUSINESS UNITS 6 BUSINESS UNITS 1 BUSINESS UNIT Key leading brands: Key leading brands: Key leading brand: 8
VILMORIN & CIE AT A GLANCE A LONG TERM REFERENCE SHAREHOLDER Groupe Limagrain: BREAKDOWN OF THE CAPITAL ON JUNE 30 th 2018 Individual shareholders 5.87% An international agricultural cooperative group, founded and managed by French farmers A seed group involved in the development of integrated agricultural chains Groupe Limagrain* 73.80% Investors 20.33% (of which ~50% internationally based: USA, UK, Singapore, Germany, etc.) Vegetable seeds and field seeds Cereal products (cereal ingredients and bakery products) * of which BPI France as a strategic shareholder of Limagrain TOTAL NUMBER OF SHARES: 20 833 902 Sources: Euroclear and Euronext 9
VILMORIN & CIE AT A GLANCE A LONG TERM REFERENCE SHAREHOLDER Groupe Limagrain, a reference shareholder guaranteeing: Stable corporate governance Long term strategy A perfect knowledge of agriculture, customers and theirs needs LIMAGRAIN IN BRIEF MISSION Moving agriculture forward to meet food challenges STRATEGY KEY FIGURES Develop the current position as an international seed company from the cooperative base in France Nearly 2,000 farmer members More than 2.6 billion euros in sales More than 10,000 employees * Figures for the overall scope of activity worldwide, taking into account data from the companies AgReliant, AGT, Genective, Seed Co and Soltis. 10
VILMORIN & CIE GROWTH STRATEGY 11 11
VILMORIN & CIE GROWTH STRATEGY 1/ PROMISING WORLD SEEDS MARKETS POWERFUL GROWTH FACTORS: Increase in seeds demand WORLD MARKET FOR COMMERCIAL SEEDS (2017) 14 % Vegetable seeds (Conventional seeds) Growth in the world population (10 bn in 2050) Improvement in the standards of living Increase in the use of commercial seeds 54 % Field seeds GM seeds 32 % Field seeds Conventional seeds Ever greater use of genetically modified ( GM ) seeds worldwide MARKET VALUE 2017: $39.4 BN. GLOBAL CAGR: +1% / YEAR (CAGR between 2012 and 2017) Sources: Phillips McDougall 2018 and ISAAA 2018 12
VILMORIN & CIE GROWTH STRATEGY 1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2017 WORLD MARKET ACREAGE 189.8 million hectares (around 10% of arable land), +3% / 2016, grown by 17 million farmers in 24 countries GMO : ACREAGE PER COUNTRY million ha 190 170 150 130 189,8 110 90 70 50 30 10 Others China India Canada Argentina Brazil USA -10 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 WORLD MARKET VALUE More than $21 billion in 2017 (i.e. 53 % of the world market for seeds), +3% / 2016 Sources: ISAAA 2018. Phillips McDougall 2018 13
VILMORIN & CIE GROWTH STRATEGY 1/ MARKET FOR SEEDS: HIGH BARRIERS TO ENTRY A concentrated competitive environment High barriers to entry: Width and depth of the genetic resources R&D investment (conventional breeding and biotechnologies) International coverage Bayer - Monsanto Corteva (Dow Dupont) Syngenta - Chemchina Vilmorin & Cie BASF KWS DLF LPHT - Citic Rijk Zwaan Sakata 631 420 277 634 WORLDWIDE COMPETITIVE ENVIRONMENT FOR SEEDS 1,565 1,396 1,394 2,208 6,888 9,251 0 2000 4000 6000 8000 10000 (Seeds companies Sales in millions of euros 2017 Data 2016-2017 for KWS, Monsanto, Rijk Zwaan and DLF. Data 2017-2018 Vegetable seeds Syngenta - ChemChina for Sakata and Vilmorin & Cie excluding the Garden Products and without the Field seeds IFRS 11 impact. Sources: Company publications and internal. 2018 KWS BASF Others 31% 4% 4% 5% Vilmorin & Cie 7% 28% 21% Bayer -Monsanto Corteva (DowDupont) 14
VILMORIN & CIE GROWTH STRATEGY 2/ A STRATEGY OF WINNING MARKET SHARES 3 strategic foundations INNOVATION TARGETED POLICY OF EXTERNAL GROWTH INTERNATIONALIZATION 3 strategic priorities Vegetable seeds: reinforce world leadership Corn seeds: become a global actor Wheat seeds : become the world reference 15
VILMORIN & CIE GROWTH STRATEGY 3 / VEGETABLE SEEDS. DIVISION PROFILE N 2 in the world - A very strong competitive position addressing worldwide vegetable growers and food processors - An extremely diversified product line-up with more than 30 species (tomato, carrot, melon, pepper, bean, etc.) KEY FIGURES 2016-2017 736 M SALES 17.1% 32 OPERATING MARGIN Current operating margin : 17.3% COUNTRIES WITH LOCATIONS SALES OF VEGETABLE SEEDS PER CROP. 2016-2017 Others 1 Tomato Sweet and hot pepper 3 SALES OF VEGETABLE SEEDS PER GEOGRAPHICAL AREA. 2016-2017 Africa / Middle East 16% Asia / Oceania 17% Europe 34% 1 Carrot Onion Bean 2 2 Squash 1 Melon Americas 33% 16 1,2,3: worldwide competitive positions
VILMORIN & CIE GROWTH STRATEGY 3 / VEGETABLE SEEDS. STRATEGY Reinforce world leadership Make full use of the virtuous circle of innovation and proximity to continue to win market shares Close targeted operations for acquisitions or partnerships to strengthen positions on certain crops and/or certain geographical zones (particularly in Asia) Recent acquisitions: CENTURY SEEDS October 2012 TROPDICORP March 2015 GENICA RESEARCH February 2016 ADVANSEED August 2018 10 local crops India Sales: 4 M Bitter gourd, pumpkin, wax gourd Vietnam Sales: 6 M$ Sweet and hot peppers, cucumber, summer squash United States Sales: more than 25 M$ Spinach and leafy vegetables Denmark Sales: 3 M$ 17
VILMORIN & CIE GROWTH STRATEGY 4 / FIELD SEEDS. DIVISION PROFILE N 1 in Europe for straw cereals(1) (1) Wheat and barley N 3 in North America And N 4 in Europe for corn seeds - One of the top players in strategic crops targeting farmers - 2 worldwide strategic crops: corn and wheat - And regional strategic crops: sunflower, rapeseed and barley in Europe, rice in India, and soybean, which Vilmorin & Cie distributes in North and South America and in South Africa Cereals (corn, wheat, barley) SALES OF FIELD SEEDS* PER CROP. 2016-2017 66% 11% Other field seeds 4% Rapeseed 4% 15% Feed grains Sunflower KEY FIGURES 2016-2017 626 33 Africa / Middle East Asia / Oceania 3% 3% Americas 42% M SALES COUNTRIES WITH LOCATIONS* (928 M )* 2.7% OPERATING MARGIN Current operating margin : 3.6% SALES OF FIELD SEEDS* PER GEOGRAPHICAL AREA. 2016-2017 Europe 52% 18 * Without the application of the standard IFRS 11 ( Joint arrangements ) resulting in certain activities being consolidated using the Equity method since 2014-2015 (in particular AgReliant. North America. Field Seeds)
VILMORIN & CIE GROWTH STRATEGY 4 / CORN SEEDS. STRATEGY CORN SEEDS: BECOME A GLOBAL ACTOR Internationalize activities further afield from European and North American activities on the largest world seed market in terms of value (more than $15 bn in 2016*) Recent acquisitions: SEED CO Minority stake. 2014 #1 African seeds company Sales: 135 M$ 6 factories & 8 research stations in south east Africa SEED ASIA March 2014 Hybrid tropical corn Thailand Sales: 9 M$ HENGJI LIMAGRAIN SEEDS JV. September 2015 Corn China Production and distribution Develop a proprietary portfolio of GM seeds Technological strategic partnership between Vilmorin & Cie and KWS GM corn traits licensing agreements with Syngenta (October 2015) 19 *Source: USDA
VILMORIN & CIE GROWTH STRATEGY 4 / WHEAT SEEDS. STRATEGY WHEAT SEEDS: BECOME THE WORLD REFERENCE Consolidate a position of leader in Europe and become the world reference of the first worldwide crop in terms of cultivated surface areas (more than 220 million hectares in 2016*) Develop more efficient seeds and contribute to converting the market to high value seeds NORTH AMERICA United States Canada AUSTRALIA Australian Grain Technologies Gradually extend the positions to other major wheat markets and develop strong partnerships internationally OTHER ZONES South America Asia *Source: USDA 20
VILMORIN & CIE GROWTH STRATEGY 5/ R&D: INNOVATE TO INSURE TOMORROW S GROWTH Maintain regular investment in research (breeding and biotechnologies) and broaden the partnerships 2016-2017 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 255 242 17.4% 17.4% 14.2% 14.6% 261 302 1,036 1,086 1,120 1,180 301 18.9% 19.1% 18.8% 15.3% 15.2% 15.2% 1,274 183 194 211 225 240 Investment Effort de recherche in research AgReliant Chiffre d'affaires sales of semences seeds (50%) AgReliant (à 50%) Sales Chiffre of d'affaires seeds semences MORE THAN 14% INVESTED IN BIOTECHNOLOGIES 310 MILLION RESEARCH INVESTMENT INTEGRATING PARTNERSHIPS* *of which 240 million research investments without integrating partnerships Investment Effort de recherche/chiffre in research/sales d'affaires of seeds semences (incl. 50% (yc AgReliant) 50%) Investment Effort de recherche/chiffre in research/sales d'affaires of seeds semences (IFRS 11) (IFRS 11) 21
SALES FOR THE FISCAL YEAR 2017-2018 (ON JUNE 30, 2018) 22
SALES FOR FISCAL YEAR 2017-2018 KEY POINTS Strong increase in sales over the fourth quarter: +10.9%* A quality quarter for Vegetable Seeds, reflecting a rebound in business: +6.1%* An excellent performance for Field Seeds: +23.3%* Slight increase in sales for 2017-2018 : +0.7%*, in line with the latest objective set Outlook for 2017-2018: confirmation of the decrease in the current operating margin rate * On a like-for-like basis 23
SALES FOR FISCAL YEAR 2017-2018 REFERENCES Accounting reference IFRS on June 30, 2018 Scope Consolidation scope: minority stake purchased in Prime Seed Co (Zimbabwe. Vegetable Seeds) Scope of activity: withdrawal from the distribution of agricultural supplies by the Business Unit Vilmorin-Mikado (Vegetable Seeds) in Japan Rates of the main currencies on June 30, 2018 (and June 30, 2017) 24 average close 2017 2018 2017 2018 $ 1.09 1.19 1.14 1.17 119 132 128 129 0.86 0.89 0.88 0.89 TRY 3.68 4.63 4.01 5.34 ILS 4.08 4.21 3.99 4.26 BRL 3.51 3.96 3.76 4.49 INR 72.43 77.69 73.74 79.81 MXN 21.09 22.35 20.58 22.88 UAH 28.56 31.73 29.75 30.74 RUB 66.38 70.51 67.54 73.16 ARS 16.84 23.27 18.94 33.68
SALES FOR FISCAL YEAR 2017-2018 CONSOLIDATED SALES* FOURTH QUARTER (1) +4.1% +10.9% In M SALES FOR FISCAL YEAR -4.8% +0.7% (1) of which: Vegetable Seeds: 234 Field Seeds: 111 * SALES* FOR FISCAL YEAR 2017-2018 BY DIVISION * Revenue from ordinary activities Garden Products and Holdings Field Seeds 46% 4% 50% Vegetable Seeds 25
SALES FOR FISCAL YEAR 2017-2018 SALES * OF VEGETABLE SEEDS In M SALES FOR THE FISCAL YEAR -8.5% FOURTH QUARTER -0.4% -1.4% +6.1% 0 * Revenue from ordinary activities 26
SALES FOR FISCAL YEAR 2017-2018 SALES OF VEGETABLE SEEDS ANALYSIS OF VEGETABLE SEEDS SALES* PER GEOGRAPHICAL ZONE Very good level of commercial activity over the quarter, with a rebound in business, particularly for the sales of carrot seeds. Fine performances for several regional crops (witloof chicory, corn salad). Africa/Middle East Asia/Oceania 16% 16% 37% Europe Vigilance concerning the timing of sales made at the end of the fiscal year, bearing in mind the situation of surplus inventories in the distribution networks begun during the last quarter of 2016-2017. One-off impact from the transient contraction of several markets (onion). Market share gains over the fiscal year and strong business increase in Asia (India and China) and South America (Brazil and Argentina) 31% Americas Rapid deployment of the programmed withdrawal from the distribution of agricultural supplies by the Business Unit Vilmorin-Mikado in Japan. * Sales of products Nevertheless, the performance was below the objective for the year, in more contrasting vegetable seed markets this year, even though their fundamentals remain intact. Confirmation of world leadership on vegetable seed markets and confidence in a continuing growth dynamic over the coming years 27
SALES FOR FISCAL YEAR 2017-2018 SALES * OF FIELD SEEDS In M SALES FOR THE FISCAL YEAR -0.4% FOURTH QUARTER +2.3% +17.6% +23.3% Revenue from ordinary activities, after application of IFRS 11 (i.e. excluding AgReliant) 28
SALES FOR FISCAL YEAR 2017-2018 TRENDS FOR THE FIELD SEEDS MARKETS A difficult market context for field seeds Low level of prices for agricultural raw materials Reduction of corn acreage on the main markets Corn United States Acreage Europe 28 Acreage Greater Europe Acreage Brazil Safra acreage Safrinha acreage Sunflower Europe 28 Acreage Greater Europe Acreage 29 Sources: USDA, APPS, CONAB, internal. June 2018
SALES FOR FISCAL YEAR 2017-2018 SALES OF FIELD SEEDS North America (AgReliant) (-2.8%) TOTAL SALES (including AgReliant): 891 M Other zones (-5.7%) 268 81 542 Europe (+3.6%) Corn, sunflower and straw cereals. Europe Excellent end to the commercial campaign, due to a late spring campaign (weather conditions in Western Europe) and the strong increase in sales in Eastern Europe (Ukraine, Russia). Slight drop in royalties for straw cereal seeds (wheat and barley), due to the decline in the commercial seed market, particularly in France. Fine growth in business by the end of the fiscal year, reflecting market share gains in corn and sunflower. Corn. Other zones (South America, Asia) Fall in business in South America, in a very difficult market context this year in Brazil (drop in acreage, strong pressure on prices), but at the same time achieving market share gains. Varying performances depending on the country in Asia, with an increase in business in India and a disappointing campaign in South-East Asia. 30 ANALYSIS PER GEOGRAPHICAL ZONE (evolution on a like-for-like basis, before application of IFRS 11) In M Very good business performance, above the objective set, in a tense market context Associated companies North America (AgReliant): Sales down with a drop in corn seed volumes marketed and persistent pressure on prices. Africa (Seed Co): High quality fiscal year, superior to the objectives initially set in spite of the drop in sales.
SALES FOR FISCAL YEAR 2017-2018 CONSOLIDATED SALES * PER GEOGRAPHICAL ZONE Asia/Oceania Africa/ Middle East 10% 10% 60 % 60% Europe Americas 265 M. -4.9%** Europe 769 M. +2.2%** Americas 20% 10 % Africa/Middle East 134 M. +1.3% ** Asia/Oceania 123 M. +2.6%** 31 * Sales of products ** On a like-for-like basis compared with 2016-2017
SALES FOR FISCAL YEAR 2017-2018 CONSOLIDATED SALES * PER QUARTER In M SALES* PER QUARTER 567 528 En M Vegetable Seeds Field Seeds Europe Field Seeds other zones Garden Products and Holdings 212 191 344 358 232 138 208 109 271 149 252 139 305 298 237 234 79 74 100 63 70 83 37 25 16 22 21 33 8 8 6 25 23 11 11 6 12 13 Q1 16-17 Q1 17-18 Q2 16-17 Q2 17-18 Q3 16-17 Q3 17-18 Q4 16-17 Q4 17-18 * Revenue from ordinary activities 32
NEWS 33
NEWS ACQUISITION OF ADVANSEED (DENMARK. VEGETABLE SEEDS) AdvanSeed in brief: Company founded in 2005 and based in Denmark, specialized in the breeding, production and sales of hybrid spinach and leafy vegetable seeds. Commercial presence in 23 countries: essentially Asia, the Middle East, South America and Europe. => Sales of around 3 million euros in 2017-2018, with very strong development of the business for several years. Strategic interests of the operation: Capitalize on AdvanSeed s genetic resources, exploiting them in the main commercial basins (California, Europe, China, Japan, etc.). Complement the Vegetable Seeds product portfolio, with a new position for a crop not worked on until now, and strengthen its global presence in leafy vegetables. 34
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018 35
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018 ESTIMATED TRENDS Confirmation of the marked decrease in the current operating margin rate, after accounting for research investment which will stand at under 255 million euros. Global contribution of associated companies below the contribution of 2016-2017 as a result of the drop in the profitability of AgReliant (North America. Field Seeds), and in spite of the excellent operating performance of Seed Co (Africa. Field Seeds). Consequently, net income lower compared with the previous fiscal year in spite of the positive fiscal impact due in particular to the lowering of tax rates in France and the United States. 16-17 17-18 (Trend) Sales 1,414.0 M 1,346.0 M Current operating margin 9.2% Total net income 90.1 M 36
VILMORIN & CIE ON THE STOCK EXCHANGE 37
VILMORIN & CIE ON THE STOCK EXCHANGE EVOLUTION OF THE SHARE PRICE (over 1 year) Vilmorin & Cie 61.30 SHARE PRICE ON OCTOBER 1 ST, 2018 CAC 40 MARKET CAPITALIZATION ON OCTOBER 1 ST, 2018 1.3 BN. Sources: Euronext.com; internal. October 17 November 17 2018 March 18 May 18 October 18 38
VILMORIN & CIE ON THE STOCK EXCHANGE DIVIDENDS (1) 4.77 3.87 4.04 3.50 4.17 2.85 1.36 1.50 1.50 1.57 1.10 1.60 2012 2013 2014 2015 2016 2017 Profit (group share) per share Dividend Pay-out 35.3% 31.5% 37.2% 44.8% 38.6% 38.4% (1) Data restated for the allotment of free shares of January 2013 and January 2015. 39
SCHEDULE AND CONTACTS 40
SCHEDULE WEDNESDAY OCTOBER 17, 2018 AFTER TRADING Disclosure of the annual results for fiscal year 2017-2018 (on June 30, 2018) MONDAY NOVEMBER 5, 2018 AFTER TRADING Disclosure of sales for the first quarter 2018-2019 (on September 30, 2018) Dates provided as an indication only, and liable to be changed 41
CONTACTS FOR ANY FURTHER INFORMATION: Vincent SUPIOT Chief Financial Officer vincent.supiot@vilmorincie.com Valérie MONSERAT Head of Financial Communication and Investor Relations valerie.monserat@vilmorincie.com Vilmorin & Cie Head Office: 4 quai de la Mégisserie F-75001 PARIS Postal address: CS 20001 Saint-Beauzire F-63360 GERZAT Tel: +33 (0)473 634 485 All our financial information on www.vilmorincie.com 42
APPENDICES 43 43
APPENDICES LATEST NEWS 44
NEWS PROJECT TO ACQUIRE GRAINES GONDIAN (FRANCE. GARDEN PRODUCTS) Presentation of the context of the Business Unit Vilmorin Jardin: Garden Products activity greatly affected by a decreasing market environment, with the erosion of the segment for seed packet sales The market for home garden seed packets > A drop of more than 17% over 6 years in volume > A drop of more than 13% over 6 years in value Source: GFK (data in rolling yearly sales) Implementation of a Job Protection Plan in 2015-2016 and 2016-2017, affecting around 20 positions Reorientation of the marketing strategy in 2017-2018: - Reconnect with all consumer profiles - Provide solutions to all gardeners, from beginners to experts 45
NEWS PROJECT TO ACQUIRE GRAINES GONDIAN (FRANCE. GARDEN PRODUCTS) Graines Gondian in brief Graines Gondian has produced and sold, since 1880, vegetable and flower seeds, and also grass seeds, in France and internationally, for home gardeners Based in Crest (Drôme), and a subsidiary of the VIVADOUR Group, Graines Gondian is the 3 rd largest player on the French market More than 2,000 customers, including: - 35% in DIY stores - 23% in self-service agricultural stores - 20% in garden centers - and 13% in supermarkets - A broad portfolio of brands: > 3 specialist brands to cover different line-up levels > 2 private label brands > 1 supermarket brand Key data for 2017 Sales: About 7 million euros Analysis of sales per product Seeds Headcount: 30 employees, including 18 sales reps Vegetable bulbs Grass Others 46
NEWS PROJECT TO ACQUIRE GRAINES GONDIAN (FRANCE. GARDEN PRODUCTS) Planned operation: Acquisition of the business activities of Graines Gondian by Vilmorin Jardin Unilateral promise for the transfer of the business activities signed Nevertheless the project remains subject to the report following consultation with staff representatives Acquisition which could come into effect for the start of fiscal year 2018-2019 Strategic interest of the operation Significantly consolidate Vilmorin & Cie s positions on a decreasing market, benefitting from powerful complementarities and synergies that exist between Vilmorin Jardin and Graines Gondian, particularly in terms of product line-ups and customer portfolio 47
APPENDICES KEY FINANCIAL DATA FOR FISCAL YEAR 2016-2017 48
RESULTS FOR FISCAL YEAR 2016-2017 INCOME STATEMENT In M 2015-2016 2016-2017 Variation 49 Sales 1 325.1 1 414.0 +6.7% Sales margin 632.2 687.0 + 54.8 M Sales margin rate 47.7% 48.6% +0.9 pt Operating income 100.3 118.3 + 18.0 M Operating margin rate 7.6% 8.4% +0.8 pt Current operating margin rate* 8.4% 9.2% +0.8 pt Income from associated companies 30.8 33.9 + 3.1 M Financial income -36.5-24.5 -( 12.0) M Income taxes -33.8-37.6 +( 3.8) M Net income 60.8 90.1 + 29.3 M Net income Group share 59.3 86.9 + 27.6 M * The current operating margin is defined as the accounting operating margin restated for any impairment and reorganization costs
RESULTS FOR FISCAL YEAR 2016-2017 KEY FIGURES FOR EACH ACTIVITY S CONTRIBUTION TO CONSOLIDATED SALES Sales* Operating income Net income In M 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 Vegetable Seeds 688.7 735.8 109.3 125.8 71.6 84.9 Field Seeds 581.7 626.0 10.6 17.2 17.3 31.9 Garden Products 53.6 51.2-4.6-6.7-4.6-6.9 Holdings 1.1 1.0-15.0-18.0-23.5-19.8 Consolidated 1 325.1 1 414.0 100.3 118.3 60.8 90.1 * Revenue from ordinary activities 50
RESULTS FOR FISCAL YEAR 2016-2017 FREE CASH-FLOW In M 2015-2016 2016-2017 Net indebtedness at the beginning of the FY 660 742 EBITDA* 278 316 Variation of working capital needs 20-43 Other operating items -28-12 Net industrial investments -46-38 Activated development costs -157-165 Operating cash-flow 68 57 Net financial investments -116-5 Capital and other equity contributions -1 - Dividends -10-4 Net financial charges -23-23 Free cash-flow -83 25 Other restatements (IFRS/Currency, etc.) 1 3 Net indebtedness at the end of the FY 742 714 * The EBITDA is defined as the operating income to which are added any provisions for depreciation, amortization and impairment. 51
RESULTS FOR FISCAL YEAR 2016-2017 BALANCE SHEET STRUCTURE In M 1 691 1 687 Net fixed assets Net working capital needs 468 492 Gearing 55% Leverage 2.3 1 264 1 309 Equity Provisions Net deferred taxes Net indebtedness 89 80 64 76 742 714 June 2016 June 2017 Total balance sheet 2 159 2 179 of which cash 207 256 52
THANK YOU VILMORIN & CIE Head office: 4 quai de la Mégisserie F-75001 PARIS Postal address: CS 20001 Saint-Beauzire F-63360 GERZAT Tel: +33 473 634 485 www.vilmorincie.com 53