investors presentation - vilmorin...2020/03/03 · 3 investors presentation march 2020 vilmorin...

MARCH 2020INVESTORS PRESENTATION1

MARCH 2020

INVESTORS PRESENTATION


Some of the statements contained in this document may be forward-looking statements concerning Vilmorin & Cie SA's financial position,results, businesses, strategy or projects.

Vilmorin & Cie SA considers that such statements are based onreasonable assumptions but cannot and does not give any assurancethat the Group's future performance will be consistent with thosestatements.

Actual results could differ from those currently anticipated in suchstatements due to a certain number of inherent risks and uncertainties,most of which are beyond Vilmorin & Cie SA's control, such as thosedescribed in the documents filed or to be filed by Vilmorin & Cie SA withthe French securities regulator (Autorité des marchés financiers) andmade available for downloading from the Company's website:www.vilmorincie.com

DISCLAIMER


VILMORIN & CIE AT A GLANCE s. 04

VILMORIN & CIE GROWTH STRATEGY s. 11

CSR PROGRAM s. 22

RESULTS FOR THE 1ST SEMESTER 2019-2020 s. 26

NEWS s. 35

OUTLOOK FOR 2019-2020 s. 43

VILMORIN & CIE ON THE STOCK EXCHANGE s. 49

SCHEDULE AND CONTACTS s. 52

GLOSSARY s. 55

APPENDICES s. 58

AGENDA


4

VILMORIN & CIE AT A GLANCE


VILMORIN & CIE, 4TH LARGEST SEEDS COMPANY IN THE WORLD

Fourth largest seeds company in the world with leading positions on its core activities

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, both an agricultural cooperative owned by French farmers and an international seed group


N°1worldwide

for vegetable seeds

N°6worldwide

for field seeds


A FULL CONTROL OF ALL STAGES IN SEEDS BUSINESS


ANALYZING

NEEDS

CREATING

NEW SEEDS

COLLECTING

GENETIC

RESOURCES

PRODUCING

SEEDS

DISTRIBUTING AND

SELLING SEEDS

255 VARIETIES LAUNCHED IN 2018-2019

A 7 TO 10 YEARS CYCLE


A TRACK RECORD COMBINING ORGANIC AND EXTERNAL GROWTH


In M€

Brasmilho Sementes

Guerra / Brazil

Bisco Bio Sciences / IndiaBSF/Genesis/Trigen/

Trio Research / USA

Century Seeds / India

Link Seed / South Africa

Eureka Seed / USA

Seed Co / Africa (*)

Seed Asia / Thailand

Field Seeds acquisition

Hengji Limagrain Seeds /

China (JV)

Golden Acres / USA

Vegetable Seeds acquisition

Tropdicorp/Vietnam

Shamrock / USA and

Mexico

Canterra Seeds / Canada(*)

Genica Research / USA

Su Tarim / Turkey

Meza Maize / USA

61.7

AdvanSeed / Denmark

53 54,1

80,6

99,4

84,1

72,9

59,3

86,9

76,9 77,91002

1064

11921338

1472 1500 1531

1627

1715

1606 1634

12691325

14141346

1391

0

20

40

60

80

100

120

140

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Sursem and Geneze /

South America

29.3

61,7

(*) Share of profit of associates.Acquisitions examples are not exhaustive.

Net income (Groupe share)SalesSales (IFRS 11)Capital gains from sale of minority stakesin China


A BUSINESS ORGANIZATION CLOSE TO THE MARKETS : KEY FOR SUCCESS


VEGETABLE SEEDS

VEGETABLE GROWERS

3 BUSINESS UNITS

Key leading brands:

FIELD SEEDS

FARMERS

6 BUSINESS UNITS

Key leading brands:

GARDEN PRODUCTS

MARKET GARDENERS

1 BUSINESS UNIT

Key leading brands:


A LONG TERM REFERENCE SHAREHOLDER

Groupe Limagrain:

An agricultural cooperative owned by French farmers

An international seed group involved in the development of

integrated agricultural chains

Vegetable Seeds and Field Seeds

Cereal Products

(Cereal Ingredients and Bakery Products)

BREAKDOWN OF THE CAPITAL

ON DECEMBER 31, 2019

5.43%

20.31%

74.26%

Groupe Limagrain*

Individual shareholders

* of which BPI France as a strategic shareholder of Limagrain

Sources: Euroclear and Euronext

TOTAL NUMBER OF SHARES:

22,917,292


Institutional investors

(of which ~50%

internationally

based: USA, UK,

Singapore,

Germany, etc.)


Cooperating for the progress of agriculture everywhere, for everyone

A LONG TERM REFERENCE SHAREHOLDER

Groupe Limagrain, a reference shareholder guaranteeing:

Stable corporate governance

Long term strategy

A perfect knowledge of agriculture, customers and their needs

LIMAGRAIN IN BRIEF

MISSION

* Strategic partnerships: AgReliant, AGT, Genective, Seed Co, Soltis, Canterra Seeds, Hengji

Limagrain seeds, Carthage Génétique and Prime Seed Co. 2018-2019.


STRATEGY

KEY FIGURES

Serving all types of agriculture, taking into account theirdiversity

Helping to meet the food needs in terms of nutrition, health and consumption patterns

Nearly 1,500 farmer members1,883 million euros in sales + 678 million euros in sales from strategic partnerships*More than 10,000 employees


11

VILMORIN & CIE GROWTH STRATEGY


1/ PROMISING WORLD SEEDS MARKETS


POWERFUL GROWTH FACTORS:

Increase in seeds demand

Growth in the world population (10 bn in 2050)

Improvement in the standards of living

Increase in the use of commercial seeds

Adoption of genetically modified

(“GM”) seeds worldwide

Vegetable seeds

(Conventional seeds)

WORLD MARKET

FOR COMMERCIAL SEEDS (2018)

(CAGR between 2013 and 2018)

Field seeds –

Conventional seeds

Field seeds –

GM seeds

14.3%

30.2%

55.5%

MARKET VALUE 2018:

$39.4 BN. GLOBAL CAGR: +1% / YEAR

Source: AgbioInvestor 2018


1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2018


WORLD MARKET ACREAGE

191.7 million hectares (more than 10% of arable land), +1% / 2017,

grown by 17 million farmers in 26 countries

Sources: ISAAA 2019. AgbioInvestor 2018

WORLD MARKET VALUE

Nearly $22 billion in 2018 (i.e. 55.5% of the world market for seeds), +2% / 2017

million ha

191,7

GMO :

ACREAGE PER COUNTRY

-10

10

30

50

70

90

110

130

150

170

190

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Others

China

Canada

India

Argentina

Brazil

USA


1/ MARKET FOR SEEDS: HIGH BARRIERS TO ENTRY


A concentrated competitive environment WORLDWIDE COMPETITIVE ENVIRONMENT FOR SEEDS

High barriers to entry:Width and depth of the genetic resources

R&D investment(conventional breeding and biotechnologies)

International coverage

Sources: corporate disclosures and internal estimates for sales in 2019.

LPHT sales for 2018; Vilmorin & Cie and KWS sales before IFRS11.

*Bayer: soybean, corn and vegetable seed sales only– other Field Seeds sales are estimated between 0.8M€ and 1B€.

No impact on the ranking.

Exchange rate: EUR 1 = USD 1,14

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

Sakata (JPN)

LPHT (CHN)

Rijk Zwaan (NLD)

DLF (DNK)

KWS (DEU)

BASF (DEU)

Vilmorin & Cie (FRA)

Syngenta (CHN)

Corteva Agriscience (USA)

Bayer (DEU)

Field Seeds Vegetable Seeds


2/ A STRATEGY OF WINNING MARKET SHARES


3 STRATEGIC FOUNDATIONS

OBJECTIVEReinforce world

leadership

OBJECTIVEBecome a global

player

OBJECTIVEUltimately

become the

world reference

2Strong

internationalization

of the activities

1Strong, continuous

investment in

research

3Capacity to combine

targeted acquisitions

and partnerships

3 STRATEGIC PRIORITIES

Corn seeds

Vegetable seeds

Wheat seeds


37%

32%

15%

16%

3/ VEGETABLE SEEDS. DIVISION PROFILE


Tomato (1)

Carrot (1)

Sweet and hot pepper (3)

Melon (1)Squash (1)

Bean (2)

Onion

Others

SALES OF VEGETABLE SEEDSPER CROP. 2018-2019

SALES OF VEGETABLE SEEDSPER GEOGRAPHICAL AREA. 2018-2019

Europa

Americas

Africa/Middle East

Asia/Oceania

KEY FIGURES 2018-2019

36687.5

14.9%

COUNTRIES

WITH

LOCATIONS

M€

SALES

OPERATING

MARGIN

Current operating margin: 14.9%

(1),(2),(3): worldwide competitive positions

- 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.)

N°1worldwidefor vegetable

seeds


3/ VEGETABLE SEEDS. STRATEGY


Reinforce world leadership

Make full use of the virtuous circle of innovation and proximity to the markets to continue to win market shares

Close targeted operations for acquisitions or partnerships to strengthen positions on certain crops and/or certain geographical zones

Develop business on complementary crop/territory segments and become a leader on all markets, with strong ambitions in Asia, and all the strategic crops

ADVANSEED July 2018

Spinach and leafy

vegetables

Denmark

Sales: 3 M€

Examples of acquisitions:

CENTURY SEEDSOctober 2012

10 local crops

India

Sales: 4 M€

TROPDICORP March 2015

Bitter gourd, pumpkin,

wax gourd

Vietnam

Sales: 6 M$

GENICA RESEARCHFebruary 2016

Sweet and hot peppers,

cucumber, summer squash

United States

Sales: more than 25 M$


59%36%

3% 2%

4 / FIELD SEEDS. DIVISION PROFILE


SALES OF FIELD SEEDS*PER GEOGRAPHICAL AREA. 2018-2019

EuropeAmericas

Asia/Oceania

KEY FIGURES 2018-2019

35

649.9

4.2%

COUNTRIES

WITH

LOCATIONS*

M€

SALES

OPERATING

MARGIN

Current operating margin: 5.1%

(892.6 M€)*

- 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

10%

6%

5%

16%

63%

SALES OF FIELD SEEDS*PER CROP. 2018-2019

Cereals (corn,

wheat, barley)

Other field seeds

Rapeseed

Feed grains

Sunflower

Africa/Middle East

* 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)

N°6worldwidefor field seeds

- One of the top players in strategic crops targeting

farmers

- 4 strategic crops: corn, wheat, sunflower and

rapeseed - 2 of which are worldwide: corn and wheat

- And regional crops adapted to each region: barley,

soybean, millet, rice, and pulses


4/ CORN SEEDS. STRATEGY


CORN SEEDS: BECOME A GLOBAL PLAYERon the largest world seed market in terms of value (nearly $15 bn in 2018*)

SEED COMinority stake. 2014

#1 African seeds company

Sales: 140 M$ in 2018-2019

6 factories & 9 research stations in south

east Africa

Hengji Limagrain SeedsJV. September 2015

Corn

China

Production and

distribution

SURSEM and GENEZEDecember 2018

Corn

Argentina and Brazil

Sales: more than 40 M$ in

2017

Technological strategic partnership between Vilmorin & Cie and KWS

*Source: AgbioInvestor 2018

Reinforce leading positions in Europe and North America

Develop activities in South America, Asia and Africa

GM corn traits licensing agreements with Syngenta (October 2015)

Develop a proprietary portfolio of GM seeds

Recent acquisitions:


4 / WHEAT SEEDS. STRATEGY


WHEAT SEEDS: ULTIMATELY BECOME THE WORLD REFERENCE

*Sources: AgbioInvestor 2018, USDA.

Consolidate a position of leader in Europe and Australia and become the world reference of the first worldwide crop in terms of cultivated surface areas (215 million hectares in 2018*)

Develop more efficient seeds and contributeto converting the market to high value seeds

Gradually extend the positions to other major wheat markets and develop strong partnerships internationally

AUSTRALIA(Australian Grain Technologies)

NORTH AMERICA

United States

Canada

OTHER ZONES

South America

Asia

Africa


5/ R&D: INNOVATE TO INSURE TOMORROW’S GROWTH


2018-2019

*of which €242 million research investments without integrating partnerships

€300 MILLION

RESEARCH INVESTMENT

INTEGRATING PARTNERSHIPS*

14%INVESTED IN BIOTECHNOLOGIES

Maintain regular investment in research (breeding and biotechnologies) and broaden the partnerships

Sales of seeds

AgReliant’ sales of seeds (50%)

Investment in research

Investment in research/Sales of seeds (incl. 50% AgReliant)

1 087 1 119 1 1801 274 1 234 1 280

242261

302301

260 243

190 211 225 240 241 241

17,5%18,9% 19,1% 18,8%

19,6%18,9%

14,3%15,3% 15,2% 15,2%

16,2% 15,9%

Réel

1314

Réel

1415

Réel

1516

Réel

1617

Réel

17-18

Réel

18-19

en M€

CA semences marchés professionnels

CA semences AgReliant @50%

Dépenses de recherche

Effort de recherche (en % de CA IFRS 11)

Effort de recherche (en % de CA yc AgReliant)

2017-20182014-2015 2015-2016 2016-2017

1,4941,380 1,482 1,576

2018-2019

1,523

242


CSR PROGRAM

22


VILMORIN & CIE’S BUSINESS MODEL

CSR PROGRAM


A CSR PROGRAM ANCHORED IN VILMORIN & CIE’s DNA

CSR PROGRAM

The foundations of the program:

- 3 founding values: progress, perseverance and cooperation

- The standard ISO 26000 and the 10 principles of United Nations Global Compact which the Group has signed

- Vilmorin & Cie’s specific development model:

A single core business of seed

Organization very close to its markets

A long-term vision

The CSR program is deployed around 3 priorities:

A program truly anchored in Vilmorin & Cie’s DNA,

with the challenges that Vilmorin & Cie was already meeting in its daily actions

Favoriser la coopérationContribute to lasting progress in

agriculture through seedAct responsibly Encourage cooperation


A CSR PROGRAM ANCHORED IN VILMORIN & CIE’s DNA

Particularly through:

Innovative and responsible solutions originating in plant genetics,

for all forms of agriculture

E.g. LG Architect

Access to quality seeds for all farmers

E.g. partnership with Fair Planet

The preservation of the genetic diversity of the crops worked on

Every year Vilmorin & Cie devotes more than 20 M€

Encourage the professional fulfilment of employees

Act according to the ethical principles of the Code of Conduct

Limit the environmental impact of activities

Particularly through:

A societal commitment framework that aims to develop

sustainable, efficient integrated chains with local

stakeholders

Commitment in regions where Vilmorin & Cie has sites with

respect to local cultures and specificities, fostered by its

organization and management model

Almost 5,000 varieties

marketed worldwide

covering more than 60

plant species

255 new varieties

launched in 2018-2019

Among objectives with

regard to the environment:

reduce energy

consumption by 10% by

2022 (vs 2015-2016)

150 measures

devoted to societal actions

in 2018-2019

CSR PROGRAM

Contribute to lasting progress in

agriculture through seed

Act responsibly

Encourage cooperation


RESULTS FOR THE 1ST SEMESTER 2019-2020 (ON DECEMBER 31, 2019)


KEY POINTS

RESULTS FOR THE 1ST SEMESTER 2019-2020

Marked increase in sales for the first semester: +6.6% with current data(1), perfectly in line with the objectives for the fiscal year

• Vegetable Seeds: measured growth in business over the 2nd quarter

• Field Seeds: an activity driven by the dynamic impetus of business in South America(1) +2.5% on a like-for-like basis

Income for the first semester down, in spite of the fine growth in the commercial margin

Outlook for 2019-2020: confirmation of the objectives of 2% to 3% business growth

(on a like-for-like basis) and a current operating margin rate of at least 8%

OPERATING INCOME* EBITDA*SALES* NET INCOME*

* In M€


REFERENCES


average close

Dec. 18 Dec. 19 Dec. 18 Dec. 19

$ 1.15 1.11 1.15 1.12

¥ 129 120 126 122

£ 0.89 0.88 0.89 0.85

TRY 6.44 6.36 6.06 6.68

ILS 4.23 3.89 4.30 3.88

BRL 4.48 4.49 4.44 4.52

INR 81.94 78.58 79.73 80.19

ARS 43.05 67.21 43.05 67.21

MXN 22.35 21.46 22.49 21.22

UAH 31.85 27.44 31.68 26.72

RUB 76.13 71.20 79.72 69.96


CONSOLIDATED SALES*

In M€

SALES* FOR THE 1ST SEMESTER 2019-2020 PER DIVISION

* Revenue from ordinary activities


1st SEMESTER

+2.5%

+6.6%

50%47%

3%

Garden Products

and Holdings

Field

Seeds

Vegetable

Seeds


ACTIVITY AND PERFORMANCES OF VEGETABLE SEEDS

Measured business growth over the 2nd quarter (+3%(1)), resulting in an increase in business of 3.9%(1) for the semester

Sales growth in all zones, with the exception of Asia (delays in carrot orders in China)• Particularly dynamic business in North and South America and in the Middle East

• Quality performances in particular for tomato, onion, pepper and carrot

Vilmorin & Cie can confirm, at the end of the semester, its position as No. 1 worldwide for vegetable seeds

Reduction of the commercial margin rate (1.3 points) due to: • an increase in production costs for certain crops such as onion

• and an increase in third party brand sales

Moderate increase in operating charges (+2.7% on a like-for-like basis)

Consequently, operating margin down 2.1 points on a half-yearly basis

In M€ 12.31.17 12.31.18 12.31.19Variation(1)

(12.31.19 vs 12.31.18)

Sales 248.7 239.2 248.4 +3.9%(2)

Operating income 1.0 (11.2) (17.0) -5.8 M€

Operating margin rate 0.4% -4.7% -6.8% -2.1 pts(1) With current data

(2) +1.9% on a like-for-

like basis



ACTIVITY AND PERFORMANCES OF FIELD SEEDS

Fine growth in sales for the first semester (+9.5 %(1)), as a result of a very good 1st quarter, and in spite of virtual stability in

business posted over the 2nd quarter (+0.2%(1))

Europe: sales down, mainly due to a delay in sales of corn seed compared with the end of 2018• Nevertheless orders look promising for the corn seed campaign and higher than last year

• Sunflower seed orders are holding up well

• Excellent rapeseed campaign, in spite of a strong drop in acreage, demonstrating very significant gains in market shares

• Drop in sales of straw cereals (wheat, barley) and sales of forage seeds

South America: strong business growth and reinforced commercial presence on this continent with such great potential• Drop in sales for the first corn campaign (safra) but a promising start to the 2nd campaign (safrinha), in a more favorable market environment this year (prices, acreage)

• Very high growth in sales of soybean seeds in Brazil and noticeable increase of sales in Argentina, in particular through the integration of the company Sursem,

acquired in December 2018

Increase of 6.2 points in the consolidated commercial margin rate, as a result of the strong increase in the rapeseed activity in

Europe and the considerable increase in margins in South America and in Asia

Increase in the operating charges (+6.4% on a like-for-like basis, excluding an exceptional income resulting from the partial

demerger of Biogemma)

As a result of these factors, virtual stability of the operating margin for the semester


In M€ 12.31.17 12.31.18 12.31.19 Variation(1)

(12.31.19 vs 12.31.18)

Sales 197.9 209.0 228.9 +9.5%(2)

Operating income (29.9) (16.3) (18.4) -2.1 M€

Operating margin rate -15.1% -7.8% -8.0% -0.2 pt

(1) With current data

(2) +2.5% on a like-for-

like basis


ASSOCIATED COMPANIES


In M€ 12.31.17 12.31.18 12.31.19Variation(12.31.19 vs

12.31.18)

Income from associated companies (26.6) (7.9) (22.4) -14.5(1)

(1) With current data

AgReliant (Field Seeds. North America)Loss for the semester of 20.3 M€ (base 50%) slightly down compared to December 31, 2018:

Slower start to the campaign (corn, soybean), in comparison to a campaign which had begun early the

previous fiscal year

Nevertheless, orders for corn seed are currently higher than last year, in the context of fairly stable acreage

expected for corn

Seed Co (Field Seeds. Africa)Loss for the semester, on September 30, 2019, of 0.2 M€, down compared with 2018-2019, which took into

account a revaluation profit of 11 M€, as a result of the financial and legal reorganization of Seed Co’s

international activities:

In Zimbabwe, business affected by a strong monetary impact, a direct consequence of the introduction of

the RTGS dollar in the country

Strong growth in sales on the other African markets


OTHER ITEMS IN THE ANALYSIS OF CONSOLIDATED PERFORMANCES

Main impacts of the application of IFRS 16 on the income statement

• EBITDA: +12.8 M€

• Operating income: +1.9 M€

• Financial income: -1.6 M€

Deterioration of the financial income (-3.6 M€)

• Increase in interest costs of 5.8 M€, as a result of the increase in average

indebtedness, and of the recording of interest costs of 1.6 M€ on lease obligations, due

to the application of IFRS 16

• Improvement of the exchange loss, at -4.5 M€ as opposed to -6.7 M€ the previous

fiscal year


Stability in the tax income (+0.5 M€) compared to fiscal year 2018-2019


PERFORMANCE 1ST SEMESTER: EVOLUTION OF NET INCOME (NI) FOR THE SEMESTER


In M€ -23.8


NEWS


RESEARCH: NEW ASSETS

NEWS

(1) The agreement was formally signed with Pioneer, now known as Corteva Agriscience.

1/ With regard to gene editing: Vilmorin & Cie has access to the most recent technologies

Vilmorin & Cie thus has a wide range of genome editing tools,

which will enable it to increase the efficiency of its research

Signature, at the end of 2019, of a non-exclusive license agreement with

Corteva Agriscience(1) and the Broad Institute (United States)

•Agreement granting access to the gene editing techniques

known as Crispr-Cas9 for agricultural use

•Crispr-Cas9: a reference technology that is complementary to

the

Crispr-Cpf1 technology, to which Vilmorin & Cie also has access

Confirmation of the willingness and capacity of Vilmorin & Cie to work

through collaborations



NEWS

Vilmorin & Cie aims eventually to offer

a proprietary range of genetically modified corn seed varieties

Existing agreements providing Vilmorin & Cie with access to GM corn traits in the United States, South America and South Africa

Exploitation of long-term license agreements concluded with Syngenta

in 2015 (for a period of 20 years)- Access to current and future GM corn traits developed by Syngenta

- Possibility of combining these traits with those developed by Genective

Research carried out by Genective,a 50/50 joint venture with the German seed company KWS,

devoted to the development of proprietary GM corn traits

A strategy structured around several complementary focuses:

2/ With regard to GM corn strategy: Vilmorin & Cie continues to progress



NEWS

Vilmorin & Cie will thus be able to position itself among

the few global players providing these technologies

Latest news: Signing of a partnership agreement between

Genective and AgBiome, a leading American company

specializing in microbial technology for crop protection

• Partnership which will give Genective access to all the genes of resistance to insects identified par AgBiome

A multi-year program that will provide Genective with considerable capabilities to discover new modes of action:

- to fight against the main corn pests- as an alternative to agrochemical treatment products

2/ With regard to GM corn strategy: Vilmorin & Cie continues to progress



NEWS

An operation that illustrates the support of a major European institution

to Vilmorin & Cie’s strategy on seed research

• Funding of a total of 170 million euros(1), finalized with highly favorable conditions

• Funding that will be dedicated to Vilmorin & Cie’s research projects

Confirmation of Vilmorin & Cie’s capacity to diversify its financial resources, making them more flexible

(1) The funding involves two maturity tranches at 5 and 7 years.

3/ With regard to funding: Vilmorin & Cie signs a long-term funding agreement dedicated to research with the European Investment Bank


NEWS

CONTINUED INTERNATIONAL DEVELOPMENT

1/ In Africa: Intensification of the collaboration with Seed Co

Vilmorin & Cie confirms its desire to significantly accelerate its expansion

in Africa, a continent which promises considerable development

(1) On December 31, 2019, Vilmorin & Cie held 29.4% of Seed Co Limited’s capital stock and 31% of Seed Co International.

• Joint venture primarily dedicated to corn seeds, operationally established between Vilmorin & Cie and Seed Co International, and equally owned by the two companies

• Objective: specifically address the West and Central African market, on which Seed Co was not present

Confirmation of the complementarity between Vilmorin & Cie and Seed Co, the leading African seed company, of which Vilmorin & Cieis the reference shareholder(1)

Creation of a joint venture in Ghana, in partnership with Seed Co


NEWS


1/ In Africa: Intensification of the collaboration with Seed Co

West Africa

Central Africa

The market for corn

in West and Central Africa:

Nearly 17 million hectares of corn grown

(around 45% of corn acreage in Africa)

- almost all for family farming

- a few commercial operations (development

of poultry farming)

- low yields

a market that is currently undervalued

56% white corn and 44% yellow corn

(vs 73% white corn overall in Africa)

Ghana

Creation of a joint venture in Ghana, in partnership with Seed Co

Sources: USDA, internal.


NEWS


2/ In China: Vilmorin & Cie is well-placed to benefit from development

perspectives on the corn market

Towards an opening of the Chinese market to GM corn

• Announcement of the Chinese Ministry of Agriculture at the end of December 2019: project to issue biosafety certificates for two corn traits (and one soybean trait), paving the way for their production in the country

• Until now, only GM cotton is authorized for growing in China

In China, Vilmorin & Cie has a structured organization for corn including:

• A network of research centers, located in accordance with corn types

• A production and sales structure, held by 45%: Hengji Limagrain Seeds

• Possible support, in particular from Syngenta's GM corn trait platform


OUTLOOK FOR 2019-2020


A DECISIVE SECOND SEMESTER DUE TO THE SEASONAL NATURE OF BUSINESS



Vegetable Seeds

Field Seeds Europe

Field Seeds other zones

Garden Products and Holdings

SALES*

PER QUARTER

In M€

253

208

389

541

232

259

Dis

clo

su

re A

pril 2

3,

20

20

Dis

clo

su

re A

ug

ust

3,

20

20


VEGETABLE SEEDS

PERSPECTIVES 2017-2018

Challenges for the end of the fiscal year


Continuation, over the most important period of the fiscal year,

of the strengthening of the commercial positions

Ability to materialize development potential in Asia

Good control over margin levels

Control over the evolution of operating charges

12.31.19 06.30.20

Sales*:

+1.9%

Objective*:

Sales = +3 %

S2: 65.2% of total sales in 2018-2019

63.1% of total sales in 2017-2018* On a like-for-like basis ** On a like-for-like basis

Sales at the end of January 2020 not audited

01.31.20

Sales**:

+3.1%

Objective for 2019-2020 confirmed

Reinforce position as No. 1 worldwide


FIELD SEEDS

PERSPECTIVES 2017-2018

Challenges for the end of the fiscal year


Definitive evolution of the allocations of cultivated acreage and

the prices of agricultural production

Materialization of the promising start for corn seed orders, in

Europe and in Brazil

Perfect availability of corn seed and good management of

margins in Europe, bearing in mind the evolution of procurement

costs

Objective for 2019-2020 confirmed

Challenges and outlook /

Associated companies

AgReliant: Confirmation of the

increase in orders for corn seed

Seed Co: Confirmation

of the fine performance achieved

over the first semester on the

different African markets

12.31.19 06.30.20

Sales*:

+2.5%

Objective*:

Sales = +2%


68.2% of total sales in 2017-2018* On al like-for-like basis ** On a like-for-like basis


01.31.20

Sales**:

+1.0%

Strengthen positions

in regions where we are established


OBJECTIVES 2019-2020

Current operating margin rate

of at least 8%,

including research investment

> 255 M€

PERSPECTIVES 2017-2018OUTLOOK FOR 2019-2020

12.31.19 06.30.20

Sales*:

+2.5%

Objective*:

+2% ≤ Sales ≤ +3%


65.8% of total sales in 2017-2018

01.31.20

Sales**:

+2.4%

* On a like-for-like basis ** On a like-for-like basis.


Confirmation of objectives for sales and current operating margin rate

Aim for a contribution from associated companies* of at least 20 million euros* Main companies concerned AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds)

… Subject to the impact of the evolution of the world health situation on the economic

environment


MID-TERM OUTLOOK

Vegetable Seeds Field Seeds

Offer perspectives of sustainable, resilient development in the mid-and long-term

Reinforce world leadership

Strengthen positions on the more mature

markets (Europe, Middle East, North America)

Strongly develop presence in Asia, ultimately

reaching about 20% of sales on this continent

(vs about 12% in 2018-2019)

Build up the foundations for business

organization in Africa, beyond current positions

in North Africa, to bring out the continent’s

potential

Be positioned as a global player,

with worldwide presence in corn and

wheat, and a portfolio of crops

adapted to each region

Consolidate and develop alliances and

partnerships to gain access to technologies

and pursue varietal innovation as efficiently as

possible

Develop corn activities in new regions, as a

priority in South America and Africa, eventually

to reach between 5 and 10% of market shares



VILMORIN & CIEON THE STOCK EXCHANGE


€40.35SHARE PRICE

ON MARCH 4, 2020

VILMORIN & CIE ON THE STOCK EXCHANGE

EVOLUTION OF THE SHARE PRICE (over 1 year)

MARKET CAPITALIZATION

ON MARCH 4, 2020

€0.9BN.

Sources: Euronext.com; internal.

Vilmorin & Cie : +54.17% 15 years -4.62% 10 years -29.02% 1 year

From: 2019-04-03 to: 2020-04-03

Disclosure of sales

for the 3rd quarter

18-19

Disclosure of

annual sales 18-19

CAC 40

Vilmorin & Cie

Disclosure of

annual results 18-19

Disclosure of sales

for the 1st quarter 19-20

Disclosure of sales

for the 1st semester 19-20


DIVIDENDS

VILMORIN & CIE ON THE STOCK EXCHANGE

* calculated on the basis of 20,833,902 shares

** calculated on the basis of 22,917,292 shares

Pay-out 44.8% 38.6% 38.4% 38.0% 41.9%

In €


SCHEDULE AND CONTACTS


SCHEDULE

THURSDAY APRIL 23, 2020(1)

Disclosure of sales at the end of the

third quarter 2019-2020

MONDAY AUGUST 3, 2020(1)

Disclosure of sales for fiscal year

2019-2020

WEDNESDAY OCTOBER 14, 2020(1)

Disclosure of results for fiscal year

2019-2020

FRIDAY DECEMBER 11, 2020

Annual General Meeting of

Shareholders in Paris

(1) Disclosure after trading on the Paris stock market.

Dates provided as an indication only, and liable to be changed.


CONTACTS

For any further information:

Vincent SUPIOT Valérie MONSERAT

Chief Financial Officer Head of Financial Communication and Investor Relations

[email protected] [email protected]

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 - Fax: +33 473 634 180

Consult all the financial information on:

www.vilmorincie.com


GLOSSARY


GLOSSARY

Current data:

Current data is data expressed at the historical currency exchange rate for the period, and without

adjustment for any changes in scope.

Current operating margin:

The current operating margin is defined as the accounting operating margin restated for any impairment

and reorganization costs.

EBITDA:

The EBITDA is defined as the operating result to which are added any provisions for depreciation,

amortization and impairment.


GLOSSARY

Financial indebtedness:

Financial indebtedness corresponds to the financial debts less cash and cash equivalents.

Like-for-like data:

Like-for-like data is data that is restated for constant scope and currency translation. Therefore, financial data

for 2018-2019 is restated with the average rate for fiscal year 2019-2020, and any other changes to the

scope, in order to be comparable with data for fiscal year 2019-2020.

Variations in the consolidated scope come from the acquisition of the companies Sursem and Geneze (South

America. Field Seeds) finalized in December 2018 and from the sale of the company Van Den Berg

(Netherlands. Garden Products) in June 2019.

Research investment:

Research investment corresponds to gross research expenditure before recording as fixed assets any

research costs and research tax relief.


58

APPENDICES


APPENDICES

GOVERNANCE


THE BOARD OF DIRECTORS

GOVERNANCE

Composition of the Board of Directors on February 26, 2020

From left to right :

Sébastien VIDAL, Philippe BLATEYRON, Annick BRUNIER, Marie-Yvonne CHARLEMAGNE, Mary DUPONT-MADINIER, Claude RAYNAUD

and Pascal VIGUIER

Changes to Vilmorin & Cie’s Board of Directors

- Appointment of Sébastien VIDAL as Chairman and CEO(1), to replace Philippe AYMARD.

- Appointment of Marie-Yvonne CHARLEMAGNE as Independent Board Member, to replace Miriam MAES(2).

- Co-optation, by the Board Meeting of February 26, 2020, of Philippe BLATEYRON as Board Member.Philippe BLATEYRON is a farmer and has been a Board Member of Limagrain since 2009; he has been Vice President since

January 2020 and has held several mandates in the Group’s different divisions.

(1) By the Board Meeting held following the Annual General Meeting of December 6, 2019, and which also confirmed Daniel JACQUEMOND’s mandate as Delegate CEO.

(2) At the Annual General Meeting of December 6, 2019.


APPENDICES

CONTEXT OF THE DIFFERENT MARKETS


FIELD SEEDS TRENDS


Sources: Stratégie Grains, internal – January 2020

Price of wheat.

Rouen: 190 €/tn

Chicago: 209 $/tnJanuary 2020

Price of corn.

Bordeaux: 166 €/t

Chicago: 153 $/tJanuary 2020


FIELD SEEDS TRENDS


Corn acreage

Sunflower acreage

United States

≈ AcreageGreater Europe*

↗ Acreage

Brazil

↗ Safra acreage

↗ Safrinha acreage

Greater Europe*

↘ Acreage

* Main countries in which Vilmorin & Cie is present

Sources: USDA, and internal sources - February 2020


APPENDICESKEY FINANCIAL DATA

64


APPENDICES

KEY FINANCIAL DATA

FOR THE 1ST SEMESTER 2019-2020


CONSOLIDATED SALES ON DECEMBER 31, 2019


SALES

PER GEOGRAPHICAL ZONE*

SALES*

PER DIVISION

* Sales of products

SALES

PER PRODUCT*


* Sales of products


SALES* PER ACTIVITY


In M€


SALES OF

VEGETABLE SEEDS


after application of IFRS 11 (i.e. excluding AgReliant)

SALES OF

FIELD SEEDS

+9.5%

+2.5%

+3.9%

+1.9%


INCOME STATEMENT


In M€ 12.31.2018

12.31.2018

restated

for IFRS 16

12.31.2019Variation

with current data

Variationvs 12.31.2018

restated

Sales 460.4 460.4 490.8 +6.6% +6.6%

Commercial margin 233.0 233.0 255.3 +22.3 M€ +22.3 M€

Commercial margin rate 50.6% 50.6% 52.0% +1.4 pt +1.4 pt

Operating income -40.5 -39.2 -46.7 -6.2 M€ -7.5 M€

Operating margin rate -8.8% -8.5% -9.5% -0.7 pt -1.0 pt

Financial income -19.4 -21.0 -23.0 -3.6 M€ -2.0 M€

Income from associated

companies -7.9 -7.9 -22.4 -14.5 M€ -14.5 M€

Income taxes 28.2 28.3 28.7 +0.5 M€ +0.4 M€

Net income -39.6 -39.8 -63.4 -23.8 M€ -23.6 M€

Group share of net income -39.2 -39.4 -61.9 -22.7 M€ -22.5 M€


INCOME STATEMENT – OPERATING CHARGES


CG = Capital Gains

In M€ 12.31.2018

12.31.2018

restated

for IFRS 16

12.31.2019Variation

with current data

Variationvs 12.31.2018

restated

Marketing and sales -93.8 -93.8 -100.4 +7.0% +7.0%

Research and development -96.0 -96.0 -107.8 +12.3% +12.3%

Administration and other charges -93.3 -92.0 -97.7 +4.7% +6.2%

Impairments -0.9 -0.9 0.1 +1.0 M€ +1.0 M€

Reorganization -1.5 -1.5 -0.9 -(0.6) M€ -(0.6) M€

Disposal of assets 12.0 (CG) 12.0 (CG) 4.7 (CG) -7.3 M€ -7.3 M€

Net operating charges -273.5 -272.2 -302.0 +(28.5) M€ +(29.8) M€


KEY FIGURES PER ACTIVITY (CONTRIBUTION TO CONSOLIDATED RESULTS)


Sales* Operating income Net income

In M€ 12.31.2018 12.31.2019 12.31.2018 12.31.2019 12.31.2018 12.31.2019

Vegetable Seeds 239.2 248.4 -11.2 -17.0 -12.1 -12.4

Field Seeds 209.0 228.9 -16.3 -18.4 -18.5 -38.5

Garden Products & Holdings 12.2 13.5 -13.0 -11.3 -9.0 -12.5

Consolidated 460.4 490.8 -40.5 -46.7 -39.6 -63.4



BALANCE SHEET STRUCTURE


In M€

Total balance sheet 2 544 2 540 2 609

including cash and bank 202 202 208


IMPACTS OF THE STANDARD IFRS 16 ON THE INCOME STATEMENT


Leases

Depreciation,

Amortization &

Impairment

Financial income

Others

Cancellation of rents on

operating leases

Amortization

of new “assets”

(right-of-use)

Financial interest related

to leases

Deferred taxes

12.8

Amount

in M€

-10.9

-1.6

-0.1

1

2

3

4

In M€

S1

2019/2020

before IFRS

16

Impact

IFRS 16

S1

2019/2020

including

IFRS 16

Revenue from ordinary activities 490.8 490.8

Cancellation of leases 12.8 12.8

EBITDA 58.1 12.8 70.9

Amortization of lease contracts -10.9 -10.9

Operating income -48.6 1.9 -46.7

Profit from associated companies -22.4 -22.4

Interest costs -16.9 -16.9

Interest costs related to leasing

contracts -1.6 -1.6

Other financial income and charges -4.5 -4.5

Income taxes 28.8 -0.1 28.7

Net income for the period -63.6 0.2 -63.4

1

2

3

4


IMPACTS OF THE STANDARD IFRS 16 ON THE BALANCE SHEET


Assets

Equity

Liabilities

Others

Right-of-use

leased assets

Impact of the

retrospective method

Lease obligations

Deferred taxes on assets

70.4

Amount

in M€

(2.5)

73.8

0.9

1

2

3

4

In M€

S1 2019/2020

before IFRS

16

Impact

IFRS 16

S1 2019/2020

including

IFRS 16

Intangible fixed assets 1,172.9 1,172.9

Tangible fixed assets 291.4 -0.7 290.7

Right-of-use leased assets 71.1 71.1

Financial fixed assets 351.1 351.1

Deferred taxes 25.2 0.9 26.1

Current assets 1,251.3 1,251.3

Cash and cash equivalents 207.9 207.9

TOTAL ASSETS 3,299.8 71.3 3,371.1

Consolidated equity 1,219.2 -2.5 1,216.7

Financial debts 1,469.8 -0.4 1,469.4

Lease obligations 74.2 74.2

Other liabilities 610.8 610.8

TOTAL LIABILITIES 3,299.8 71.3 3,371.1

1

4

2

3


APPENDICES

KEY FINANCIAL DATA

FOR FISCAL YEAR 2018-2019


INCOME STATEMENT

In M€ 2017-2018 2018-2019 Variation

Sales 1,346.0 1,390.7 +3.3%

Sales margin 658.7 678.7 +20.0 M€

Sales margin rate 48.9% 48.8% -0.1 pt

Operating income 97.1 111.0 +13.9 M€

Operating margin rate 7.2% 8.0% +0.8 pt

Current operating margin rate 7.2% 8.4% +1.2 pt

Income from associated companies 23.3 26.0 +2.7 M€

Financial income -38.0 -45.0 -7.0 M€

Income taxes -5.5 -14.1 -8.6 M€

Net income 76.9 77.9 +1.0 M€

Net income group share 74.1 73.9 -0.2 M€

RESULTS FOR FISCAL YEAR 2018-2019


KEY FIGURES FOR EACH ACTIVITY’S CONTRIBUTION TO CONSOLIDATED SALES


Sales* Operating income Net income

In M€ 2017-2018 2018-2019 2017-2018 2018-2019 2017-2018 2018-2019

Vegetable Seeds 673.1 687.5 114.8 102.7 80.7 71.7

Field Seeds 623.3 649.9 2.3 27.4 20.4 32.8

Garden Products and Holdings 49.6 53.4 -20.0 -19.1 -24.2 -26.6

Consolidated 1,346.0 1,390.7 97.1 111.0 76.9 77.9



In M€ 2017-2018 2018-2019

Net indebtedness at the beginning of the FY 714 766

EBITDA 297 322

Variation of working capital needs -68 -2

Other operating items -15 -61

Net industrial investments -46 -17

Activated development costs -171 -171

Operating cash-flow -3 70

Net financial investments -8 -151

Capital and other equity contributions -3 -3

Dividends -18 -24

Net financial charges -25 -30

Free cash-flow -57 -138

Other restatements (IFRS/Currency, etc.) 5 -8

Net indebtedness at the end of the FY 766 912

FREE CASH-FLOW



BALANCE SHEET STRUCTURE

Total balance sheet 2,218 2,388

of which cash 197 249

In M€


Gearing 68.9%Leverage 2.8

06.30.201906.30.2018


APPENDICESVILMORIN & CIE ORGANIZATION CHART

79


FIELD SEEDS

Limagrain Europe

AgReliant (corn, soybean)

Limagrain Asia-Pacific

Limagrain Cereal Seeds (wheat)

Limagrain South America

Limagrain Africa

VEGETABLE SEEDS

HM.CLAUSE

Hazera

Vilmorin-Mikado

ORGANIZATION CHART

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THANK YOUVILMORIN & 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

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