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May, 2019INVESTORS PRESENTATION1
May, 2019
INVESTORS PRESENTATION
May, 2019INVESTORS PRESENTATION2
DISCLAIMER
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
May, 2019INVESTORS PRESENTATION3
AGENDA
VILMORIN & CIE AT A GLANCE s. 04
VILMORIN & CIE GROWTH STRATEGY s. 11
SALES AT THE END OF THE 3RD QUARTER 2018-2019 s. 22
NEWS s. 33
OUTLOOK FOR THE END OF FISCAL YEAR 2018-2019 s. 38
VILMORIN & CIE ON THE STOCK EXCHANGE s. 42
SCHEDULE AND CONTACTS s. 45
APPENDICES s. 48
May, 2019INVESTORS PRESENTATION4
4
VILMORIN & CIE AT A GLANCE
May, 2019INVESTORS PRESENTATION5
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, an international agricultural cooperative group
VILMORIN & CIE AT A GLANCE
N°2worldwide
for vegetable seeds
N°6worldwide
for field seeds
May, 2019INVESTORS PRESENTATION6
A FULL CONTROL OF ALL STAGES IN SEEDS BUSINESS
VILMORIN & CIE AT A GLANCE
ANALYZING
NEEDS
CREATING
NEW SEEDS
COLLECTING
GENETIC
RESOURCES
PRODUCING
SEEDS
DISTRIBUTING AND
SELLING SEEDS
AROUND 300 VARIETIES LAUNCHED PER YEAR
A 7 TO 10 YEARS CYCLE
May, 2019INVESTORS PRESENTATION7
A TRACK RECORD COMBINING ORGANIC AND EXTERNAL GROWTH
VILMORIN & CIE AT A GLANCE
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 / USASu Tarim / Turkey
Meza Maize / USA
61.7
44,3
53,0 54,1
61,7
80,6
99,4
84,1
72,9
59,3
86,9
76,9897
1 0021 064
1 192
1 338
1 472 1 500 1 531
1 6271 715
1 606
1 2691 325
1 4141 346
0
20
40
60
80
100
120
140
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
29.3
AdvanSeed / Denmark
May, 2019INVESTORS PRESENTATION8
A BUSINESS ORGANIZATION CLOSE TO THE MARKETS : KEY FOR SUCCESS
VILMORIN & CIE AT A GLANCE
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 brand:
May, 2019INVESTORS PRESENTATION9
Investors
(of which ~50%
internationally
based: USA, UK,
Singapore,
Germany, etc.)
A LONG TERM REFERENCE SHAREHOLDER
Groupe Limagrain:
An international agricultural cooperative group, founded and managed by French farmers
A 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 JANUARY 31, 2019
5.82%
20.36%
73.82%
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
VILMORIN & CIE AT A GLANCE
May, 2019INVESTORS PRESENTATION10
Moving agriculture forward to meet food challenges
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
* Figures for the overall scope of activity worldwide, taking into account data from the companies
AgReliant, AGT, Genective, Seed Co, Soltis, Canterra Seeds, Hengji Limagrain Seeds, Carthage
Génétique and Prime Seed Co.
VILMORIN & CIE AT A GLANCE
STRATEGY
KEY FIGURES
Develop the current position as an international seedcompany from the cooperative base in France
Nearly 2,000 farmer membersNearly 2.5 billion euros in salesMore than 10,000 employees
May, 2019INVESTORS PRESENTATION11
11
VILMORIN & CIE GROWTH STRATEGY
May, 2019INVESTORS PRESENTATION12
1/ PROMISING WORLD SEEDS MARKETS
VILMORIN & CIE GROWTH STRATEGY
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
Ever greater use of genetically modified
(“GM”) seeds worldwide
Vegetable seeds
(Conventional seeds)
WORLD MARKET
FOR COMMERCIAL SEEDS (2017)
(CAGR between 2012 and 2017)
Field seeds –
Conventional seeds
Field seeds –
GM seeds
14 %
32 %
54 %
MARKET VALUE 2017:
$39.4 BN. GLOBAL CAGR: +1% / YEAR
Sources: Phillips McDougall 2018 and ISAAA 2018
May, 2019INVESTORS PRESENTATION13
1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2017
VILMORIN & CIE GROWTH STRATEGY
WORLD MARKET ACREAGE
189.8 million hectares (around 10% of arable land), +3% / 2016,
grown by 17 million farmers in 24 countries
Sources: ISAAA 2018. Phillips McDougall 2018
WORLD MARKET VALUE
More than $21 billion in 2017 (i.e. 54 % of the world market for seeds), +3% / 2016
million ha
189,8
GMO :
ACREAGE PER COUNTRY
0
20
40
60
80
100
120
140
160
180
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Others
China
India
Canada
Argentina
Brazil
USA
May, 2019INVESTORS PRESENTATION14
KWS4%
DLF2%
Bayer13%
Vilmorin & Cie 5%
Syngenta7%
Corteva20%
Others49%
300
313
334
581
1 345
1 560
2 517
4 295
6 634
BASF
Florimond Desprez
LPHT
Rijk Zwaan
DLF
KWS
Vilmorin & Cie
Syngenta
Bayer*
Corteva
Field Seeds
VegetableSeeds
413
1/ MARKET FOR SEEDS: HIGH BARRIERS TO ENTRY
VILMORIN & CIE GROWTH STRATEGY
A concentrated competitive environment
High barriers to entry:Width and depth of the genetic resources
R&D investment (conventional breeding and biotechnologies)
International coverage
WORLDWIDE COMPETITIVE ENVIRONMENT FOR SEEDS
*Includes soybean, corn and vegetable seed sales only.
Sales in millions of euros
LPHT and Florimond Desprez sales for 2017.
Vilmorin & Cie and KWS sales before IFRS11.
Sources: Company release and internal est. sales for 2018. Sources: Company release and internal est. sales for 2018.
Market est. for 2017 – Phillips McDougall
May, 2019INVESTORS PRESENTATION15
2/ A STRATEGY OF WINNING MARKET SHARES
VILMORIN & CIE GROWTH STRATEGY
STRATEGIC
FOUNDATIONS STRATEGIC
PRIORITIES
1. Strong, continuous investment in research
2. Strong internationalization of the activities
3. Capacity to combine targeted acquisitions and partnerships
Vegetable seeds
Corn seeds
Wheat seeds
OBJECTIVEReinforce world
leadership
OBJECTIVEBecome a global
player
OBJECTIVEUltimately
become the
world reference
May, 2019INVESTORS PRESENTATION16
37%
31%
16%
16%
3 / VEGETABLE SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
Tomato (1)
Sweet and hot pepper (3)
Carrot (1)
Melon (1)
Squash (1)Bean (2)
Cauliflower (1)
Others
SALES OF VEGETABLE SEEDSPER CROP. 2017-2018
SALES OF VEGETABLE SEEDSPER GEOGRAPHICAL AREA. 2017-2018
Europa
Americas
Africa/Middle East
Asia/Oceania
KEY FIGURES 2017-2018
33673
17.1%
COUNTRIES
WITH
LOCATIONS
M€
SALES
OPERATING
MARGIN
Current operating margin : 17.1%
(1),(2),(3): worldwide competitive positions
N°2worldwidefor vegetable
seeds
- 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.)
May, 2019INVESTORS PRESENTATION17
3 / VEGETABLE SEEDS. STRATEGY
VILMORIN & CIE GROWTH 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€
Recent 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$
May, 2019INVESTORS PRESENTATION18
57%38%
3% 2%
4 / FIELD SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
SALES OF FIELD SEEDS*PER GEOGRAPHICAL AREA. 2017-2018
EuropeAmericas
Asia/Oceania
KEY FIGURES 2017-2018
33
623
0.4%
COUNTRIES
WITH
LOCATIONS*
M€
SALES
OPERATING
MARGIN
Current operating margin : 0.4%
(884 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
12%
4%
4%
16%
64%
SALES OF FIELD SEEDS*PER CROP. 2017-2018
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
- 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
May, 2019INVESTORS PRESENTATION19
4 / CORN SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
CORN SEEDS: BECOME A GLOBAL ACTORon the largest world seed market in terms of value (more than $16 bn in 2017*)
SEED COMinority stake. 2014
#1 African seeds company
Sales: 129 M$ in 2017-2018
6 factories & 9 research stations in south
east Africa
SEED ASIAMarch 2014
Hybrid tropical corn
Thailand
Sales: 9 M$
SURSEM and GENEZEDecember 2018
Corn
Argentina and Brazil
Sales: more than 40 M$
Technological strategic partnership between Vilmorin & Cie and KWS
*Source: Phillips McDougall 2018
Reinforce leading positions in Europe and North America
Develop activities in new regions: South America, Asia and Africa
GM corn traits licensing agreements with Syngenta (October 2015)
Develop a proprietary portfolio of GM seeds
Recent acquisitions:
May, 2019INVESTORS PRESENTATION20
4 / WHEAT SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
WHEAT SEEDS: BECOME THE WORLD REFERENCE
*Source: Phillips McDougall 2018
Consolidate a position of leader in Europe and become the world reference of the first worldwide crop in terms of cultivated surface areas (nearly 220 million hectares in 2017*)
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
NORTH AMERICA
United States
Canada
AUSTRALIA(Australian Grain Technologies)
OTHER ZONES
South America
Asia
Africa
May, 2019INVESTORS PRESENTATION21
5/ R&D: INNOVATE TO INSURE TOMORROW’S GROWTH
VILMORIN & CIE GROWTH STRATEGY
2017-2018
*of which €241 million research investments without integrating partnerships
NEARLY €310 MILLION
RESEARCH INVESTMENT
INTEGRATING PARTNERSHIPS*
14%INVESTED IN BIOTECHNOLOGIES
Maintain regular investment in research (breeding and biotechnologies) and broaden the partnerships
1,086 1,120 1,180 1,274 1,234
242261
302301
260
194 211 225 240 241
14.6% 15.3% 15.2% 15.2% 16.2%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 8002013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Investment in research
AgReliant' sales of seeds (50%)
Sales of seeds
Investment in research/Sales of seeds (incl. 50% AgReliant)
May, 2019INVESTORS PRESENTATION22
SALES AT THE END OF THE 3RD QUARTER 2018-2019 (ON MARCH 31, 2019)
May, 2019INVESTORS PRESENTATION23
KEY POINTS
SALES AT THE END OF THE 3RD QUARTER 2018-2019
A 3rd quarter 2018-2019 with growth of 3.3%*,
marked by a confirmed upturn in business for Vegetable Seeds
and a fine performance by Field Seeds
Vegetable Seeds: marked increase in sales over the third quarter: +3.5%*
Field Seeds: appreciable growth over the quarter, confirming the fine performance of
European activities: +2.6%*
Consequently, significant growth in aggregate sales (9 months): +3.5%*
Confirmation of objectives for 2018-2019
Increase in sales of 2% to 3%*
Slightly higher current operating margin rate
* On a like-for-like basis
May, 2019INVESTORS PRESENTATION24
REFERENCES
Accounting referenceIFRS on March 31, 2019
Standard IAS 29 with regard to the treatment of hyperinflation, applied to activities in Argentina
ScopeConsolidation scope: acquisition of the company AdvanSeed (Denmark. Vegetable Seeds), concluded in July 2018;
acquisition of the companies Sursem and Geneze (South America. Field Seeds), finalized in December 2018
Activity scope: withdrawal from the distribution of agricultural supplies by the Business Unit Vilmorin-Mikado (Vegetable
Seeds) in Japan, initiated during fiscal year 2017-2018
Rates of the main currencies on March 31, 2019 (and March 31, 2018)average close
March 2018 March 2019 March 2018 March 2019
$ 1.19 1.15 1.23 1.12
¥ 132 128 131 124
£ 0.89 0.88 0.87 0.86
TRY 4.43 6.33 4.90 6.34
ILS 4.19 4.20 4.33 4.08
BRL 3.84 4.41 4.09 4.39
INR 76.97 81.32 80.30 77.72
ARS 21.73 48.74 24.76 48.74
MXN 22.10 22.17 22.52 21.69
UAH 31.91 31.57 32.50 30.71
RUB 69.34 75.71 70.89 72.86
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION25
CONSOLIDATED SALES*
In M€AT THE END OF THE THIRD QUARTER
THIRD QUARTER
* Revenue from ordinary activities
* of which:
Vegetable Seeds: 199
Field Seeds: 317
+2.5%
+3.3%
+
+
+
+1.4%
+3.5%
*+
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION26
SALES* OF VEGETABLE SEEDS
In M€
* Revenue from ordinary activities
THIRD QUARTER
AT THE END OF THE THIRD QUARTER
+4.2%
+3.5%
-0.4%
+1.9%
++
+ + +
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION27
SALES OF VEGETABLE SEEDS
37%
32%
15%
16%
Clear business growth over the 3rd quarter, with fine performances for
several strategic crops: pepper, summer squash and carrot
(particularly in China)
Significant increase in sales in Europe, particularly Western Europe
Sharp rebound in sales in South America and the Middle East, in
spite of exogenous factors disturbing commercial activity in these
regions
Tense market conditions this year in the Maghreb countries (North
Africa) impacting business in this area
In North America, performances were affected by the one-off drop in
certain market segments, but confirmed that the inventory levels with
distributors is healthier
Marked increase in business at the end of the 3rd quarter, within
vegetable seed markets whose evolution remains contrasted
depending on geographical regions
Europe
Africa/Middle East
Asia/Oceania
Americas
ANALYSIS OF SALES*
OF VEGETABLE SEEDS PER GEOGRAPHICAL ZONE
Vilmorin & Cie reinforced its rank
as a world leader in vegetable seeds
* Sales of products
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION28
SALES* OF FIELD SEEDS
AT THE END OF THE THIRD QUARTER
THIRD QUARTER
* Revenue from ordinary activities, after application of IFRS 11
(i.e. excluding AgReliant)
In M€
+2.8%
+4.9%
+1.0%
+2.6%+
+
++
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION29
TRENDS FOR THE FIELD SEEDS MARKET
Sources: USDA, APPS, CONAB, internal. March 2019
Increase in expected corn acreage
United States
↗ Acreage
Europe 28
↗ Acreage
Greater Europe
↗ Acreage
Brazil
↗ Safra acreage
↗ Safrinha acreage
Trend for a reduction in sunflower acreage
In an unstable agricultural market environment
Greater Europe
↘ Acreage
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION30
SALES OF FIELD SEEDS
462
199
65
In M€
Europe Fine growth in the sales of corn seeds:
Strong increase in Western and Central Europe, resulting in market share gains
Early sales in the United Kingdom, as a direct result of Brexit
Stable sales of sunflower seeds, with orders looking satisfactory, in spite of certain
orders being somewhat late (Russia)
Significant growth of sales in Europe
South AmericaSharp drop in business over the 3rd quarter
In Brazil, significant reduction in volumes for safrinha corn, reflecting Vilmorin & Cie’s decision
to defend its pricing policy while improving its margins levels, in a context of strong competitive
pressure on prices
Very strong growth of soybean sales in Brazil and corn sales in Argentina
Integration of the companies Sursem (Argentina) and Geneze (Brazil) going according
to plans
Associated companiesNorth America (AgReliant): Sales down markedly, affected by the deployment of the new
commercial strategy, with a major brand reorganization
Africa (Seed Co): Strong increase in sales
Europe
North
America
(AgReliant)
Other zones
ANALYSIS
PER GEOGRAPHICAL ZONE(evolutions on a like-for-like basis,
before application of IFRS 11)
(+6.4%)
(-7.5%)
(-4.7%)
TOTAL SALES
(including AgReliant): 726 M€
Vilmorin & Cie achieved a good level of performance,
particularly in Europe, confirming its capacity to strengthen
its commercial positions globally
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION31
CONSOLIDATED SALES* PER GEOGRAPHICAL ZONE
Americas
188 M€. +0.1%**
Africa/Middle East
93 M€. +4.4%**
Europe
607 M€. +5.3%**
Asia/Oceania
75 M€. -2.1%**
60 %
10 %63%
19%
10%
8%Africa/
Middle East
Americas
Asia / Oceania
Europe
* Sales of products
** On a like-for-like basis compared with 2017-2018
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION32
CONSOLIDATED SALES* PER QUARTER
* Revenue from ordinary activities
8 8 6 523 25 13
21 1633 32
16 1611
70 8074 80
298 301
100
109 103
139 136
191 199
234
Q1 17-18 Q1 18-19 Q2 17-18 Q2 18-19 Q3 17-18 Q3 18-19 Q4 17-18 Q4 18-19
208
253
In M€
252
Vegetable Seeds
Field Seeds Europe
Field Seeds other zones
Garden Products and Holdings
358
Dis
clo
su
re o
n A
ug
ust
5,2
019
528
208
541
SALES AT THE END OF THE 3RD QUARTER 2018-2019
May, 2019INVESTORS PRESENTATION33
NEWS
May, 2019INVESTORS PRESENTATION34
ACQUISITION OF THE COMPANIES SURSEM AND GENEZE (South America. Field Seeds)
NEWS
Sursem (Argentina) and Geneze (Brazil) in brief:
A highly significant reinforcement of Vilmorin & Cie’s organizationand commercial positions in South America for key crops
A new major step in the internationalization
of Vilmorin & Cie’s Field Seeds
2 independent companies, mainly active in hybrid corn seeds, but also wheat, sunflower and soybean seeds
Comprehensive organization: 4 research centers, 2 production sites and an extensive sales network
Total sales: more than 40 MUS$ in 2017
More than 160 employees
Argentina,
4th largest world market for
field seeds
• 6.6 Mha of corn acreage
• Temperate corn germplasm
May, 2019INVESTORS PRESENTATION35
ACQUISITION OF THE COMPANIES SURSEM AND GENEZE (South America. Field Seeds)
NEWS
Entry of the two companies into the consolidation scope on the same date
Impact on sales on December 31, 2018: 2.9 M€
Foreseeable impact on sales on June 30, 2019: more than 10 M€, corresponding to the seasonal nature of the business
Acquisition of Sursem and Geneze
from the investment fund Pampa Agribusiness
finalized on December 3, 2018
May, 2019INVESTORS PRESENTATION36
REORGANIZATION OF BIOGEMMA / CONSOLIDATION OF THE SEED CO PARTNERSHIP
NEWS
Reorganization of Biogemma, a biotechnology research company
Finalization, in December 2018, of the partial demerger of Biogemma
• Oilseed research: new structure, named Innolea, with the previous Biogemma shareholders holding equal stakes
• Wheat and corn research: 100% integration into Vilmorin & Cie(as opposed to 55% on June 30, 2018)
Consolidation of the partnership with Seed Co, the largest seed company in Africa
Following the legal and financial reorganization of Seed Co’s international activities in August 2018, Vilmorin & Cie has become the No. 1 shareholder in Seed Co International(1)
Strengthening of Vilmorin & Cie’s commitment in Africa
(1) Seed Co International combines Seed Co’s business outside Zimbabwe.
May, 2019INVESTORS PRESENTATION37
COMMITMENT TO THE “PSL INNOVATION FUND” (FRANCE)
NEWS
Investment in the professional private equity fund
“PSL Innovation Fund”
Commitment for a period of 10 years
Vilmorin & Cie, fund reference partner in the field of agriculture
Have privileged access to the leaders of today and tomorrow on
key topics
Strengthen links with world-class innovation ecosystems
Take advantage of a great source of innovation, which could
benefit all the Company’s businesses and activities
Strengthening of Vilmorin & Cie’s capacity to innovate,
a key component in its future growth
The PSL Innovation Fund
in brief:
• Fund originating from the
partnership between PSL
University (Paris Sciences
et Lettres) and the venture
capital firm Elaia Partners
• Fund targeting start-ups:- that are innovative,
- with a strong digital and
technological component,
- active in the sectors of: life
sciences, biotechnology,
agriculture, artificial
intelligence, etc.
May, 2019INVESTORS PRESENTATION38
OUTLOOK FOR THE ENDOF FISCAL YEAR 2018-2019
May, 2019INVESTORS PRESENTATION39
VEGETABLE SEEDS
OUTLOOK FOR THE END OF FISCAL YEAR 2018-2019
Outlook for the end of the fiscal year:
Objective for Vegetable Seeds sales maintained
Challenges for the end of the fiscal year:
Confirmation, over the fourth quarter, of the clear upturn in
business posted for the third quarter, with a high reference base
Easing of the geopolitical and monetary context
Objective*
+2% ≤ Sales ≤ +3%
* On a like-for-like basis.
May, 2019INVESTORS PRESENTATION40
FIELD SEEDS
OUTLOOK FOR THE END OF FISCAL YEAR 2018-2019
Definitive evolution of cultivated acreage of corn and sunflower
Continuing dynamic business in Europe as achieved over the first
9 months of the fiscal year
Final impact of the exchange rates between different currencies
Challenges for the end of the fiscal year:
Outlook for the end of the fiscal year:
Objective for Field Seeds sales confirmed
Objective*
+2% ≤ Sales ≤ +3%
* On a like-for-like basis
May, 2019INVESTORS PRESENTATION41
CONFIRMATION OF OBJECTIVES FOR THE FISCAL YEAR
Current operating margin rate
up by 0.5 points to 1 point
compared to 2017-2018,
including research investment
now estimated at ≈ 240 M€
Confirmation of objectives for sales and the current operating margin rate
Confirmation of the anticipation of a contribution from associated companies
down compared to that of 2017-2018• After excluding the revaluation profit resulting from the reorganization of Seed Co’s international activities
• Because of the evolution of the commercial activity of AgReliant (North America. Field Seeds)
• And in spite of the fine performance expected of Seed Co (Africa. Field Seeds)
Consolidated sales
up by 2% to 3%
on a like-for-like basis
Pursue deployment of the development and innovation strategy,
in a market environment that remains highly volatile,
while continuing to rely on a specific development model
OUTLOOK FOR THE END OF FISCAL YEAR 2018-2019
May, 2019INVESTORS PRESENTATION42
VILMORIN & CIEON THE STOCK EXCHANGE
May, 2019INVESTORS PRESENTATION43
€49.70SHARE PRICE
ON APRIL 25, 2019
VILMORIN & CIE ON THE STOCK EXCHANGE
EVOLUTION OF THE SHARE PRICE (over 1 year)
MARKET CAPITALIZATION
ON APRIL 25, 2019
€1.1 BN.
Sources: Euronext.com; internal.
Vilmorin & Cie : +119.68% 15 years +22.13% 10 years -0.90% 1 year
CAC 40
Vilmorin & Cie
Disclosure of sales
for the 3rd quarter
18-19
Disclosure of
annual sales 17-18
Disclosure of
annual results 17-18
Disclosure of sales
for the 1st quarter 18-19
Disclosure of sales and
results for the 1st
semester 18-19
May, 2019INVESTORS PRESENTATION44
DIVIDENDS(1)
VILMORIN & CIE ON THE STOCK EXCHANGE
4.04
3.50
2.85
4.17
3.56
1.50 1.57
1.10
1.601.35
2014* 2015** 2016** 2017** 2018**
Profit (group share) per share Dividend
* calculated on the basis of 18,939,911 shares
** calculated on the basis of 20,833,902 shares
Pay-out 37.2% 44.8% 38.6% 38.4% 38.0%
In €
The General Meeting of
Shareholders approved on
December 7, 2018 the eighteenth
resolution delegating powers
necessary to the Board of Directors
to allot free shares to the
Shareholders.
This operation has been deployed in
January 2019.
Free allotment of shares
(1) Data restated for the allotment of free shares of January 2013 and January 2015.
May, 2019INVESTORS PRESENTATION45
SCHEDULE AND CONTACTS
May, 2019INVESTORS PRESENTATION46
SCHEDULE
MONDAY AUGUST 5, 2019(1)
Disclosure of sales for fiscal year 2018-2019
TUESDAY OCTOBER 15, 2019(1)
Disclosure of results for fiscal year 2018-2019
MONDAY NOVEMBER 4, 2019(1)
Disclosure of sales at the end of the first quarter 2019-2020
FRIDAY DECEMBER 6, 2019
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
May, 2019INVESTORS PRESENTATION47
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
May, 2019INVESTORS PRESENTATION48
48
APPENDICES
May, 2019INVESTORS PRESENTATION49
APPENDICESKEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION50
CONSOLIDATED SALES* ON DECEMBER 31, 2018
In M€
* Revenue from ordinary activities
1ST SEMESTER
+0.1%
+3.8%
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION51
CONSOLIDATED SALES ON DECEMBER 31, 2018
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
SALES
PER GEOGRAPHIC ZONE*
52%45%
3%
SALES*
PER DIVISION
Vegetable
SeedsField
Seeds
Garden Products
and Holdings
52%
26%
11%
11%
Europe
Africa / Middle East
Asia / Oceania
Americas
* Sales of products
53%
22%
14%
7%4%
Semences potagères
Céréales (maïs, blé/orge)
Oléoprotéagineux colza & tournesol
Autres semences de grandes cultures
Autres produits
SALES
PER PRODUCT*
* Revenue from ordinary activities
* Sales of products
May, 2019INVESTORS PRESENTATION52
SALES* PER ACTIVITY
* Revenue from ordinary activities
In M€
SALES OF
VEGETABLE SEEDS
* Revenue from ordinary activities
after application of IFRS 11 (i.e. excluding AgReliant)
SALES OF
FIELD SEEDS
-3.8%
+0.7%
+5.6%
+8.5%
/ Scope
impact
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION53
INCOME STATEMENT
In M€ 12.31.2017 12.31.2018 Variation*
Sales 460.1 460.4 +0.1%
Commercial margin 236.8 233.0 -3.8 M€
Commercial margin rate 51.5% 50.6% -0.9 pt
Operating income -42.4 -40.5 +1.9 M€
Operating margin rate -9.2% -8.8% +0.4 pt
Financial income -16.7 -19.4 -2.7 M€
Income from associated companies -26.6 -7.9 +18.7 M€
Income taxes 47.6 28.2 -19.4 M€
Net income -38.1 -39.6 -1.5 M€
Group share of net income -37.3 -39.2 -1.9 M€
* With current data
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION54
INCOME STATEMENT – OPERATING CHARGES
* With current data CG = capital gains
In M€ 12.31.2017 12.31.2018 Variation*
Marketing and sales -92.6 -93.8 +1.3%
Research and development -97.1 -96.0 -1.1%
Administration and other charges -89.8 -93.3 +3.9%
Impairments 0.1 -0.9 -1.0 M€
Reorganization 0.1 -1.5 -1.6 M€
Disposal of assets 0.1 (CG) 12.0 (CG) +11.9 M€
Net operating charges -279.2 -273.5 -(5.7) M€
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION55
KEY FIGURES PER ACTIVITY (CONTRIBUTION TO CONSOLIDATED RESULTS)
Sales* Operating income Net income
In M€ 12.31.2017 12.31.2018 12.31.2017 12.31.2018 12.31.2017 12.31.2018
Vegetable Seeds 248.7 239.2 1.0 -11.2 10.7 -12.1
Field Seeds 197.9 209.0 -29.9 -16.3 -40.1 -18.5
Garden Products 13.1 11.8 -7.7 -8.0 -7.7 -8.0
Holdings 0.4 0.4 -5.8 -5.0 -1.0 -1.0
Consolidated 460.1 460.4 -42.4 -40.5 -38.1 -39.6
* Revenue from ordinary activities
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION56
BALANCE SHEET STRUCTURE
Total balance sheet 2,302 2,544
including cash and bank 226 202
In M€
9861,203
47
4876
69
1,1931,224
31.12.2017 31.12.2018
Capitaux propres
Provisions
Impôts différés nets
Endettement net
671 731
1,6311,813
Actif immobilisé net
BFR net
ASSETS
LIABILITIES
12.31.2017 12.31.2018
KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2018-2019
May, 2019INVESTORS PRESENTATION57
APPENDICESKEY FINANCIAL DATA FOR FISCAL YEAR 2017-2018
May, 2019INVESTORS PRESENTATION58
INCOME STATEMENT
In M€ 2016-2017 2017-2018 Variation
Sales 1 414.0 1 346.0 -4.8%
Sales margin 687.0 658.7 -28.3 M€
Sales margin rate 48.6% 48.9% +0.3 pt
Operating income 118.3 97.1 -21.2 M€
Operating margin rate 8.4% 7.2% -1.2 pt
Current operating margin rate 9.2% 7.2% -2.0 pts
Income from associated companies 33.9 23.3 -10.6 M€
Financial income -24.5 -38.0 -13.5 M€
Income taxes -37.6 -5.5 +32.1 M€
Net income 90.1 76.9 -13.2 M€
Net income Group share 86.9 74.1 -12.8 M€
KEY FINANCIAL DATA FOR FISCAL YEAR 2017-2018
May, 2019INVESTORS PRESENTATION59
KEY FIGURES FOR EACH ACTIVITY’S CONTRIBUTION TO CONSOLIDATED SALES
* Revenue from ordinary activities
Sales* Operating income Net income
In M€ 2016-2017 2017-2018 2016-2017 2017-2018 2016-2017 2017-2018
Vegetable Seeds 735.8 673.1 125.8 114.8 84.9 80.7
Field Seeds 626.0 623.3 17.2 2.3 31.9 20.4
Garden Products 51.2 48.7 -6.7 -3.7 -6.9 -4.0
Holdings 1.0 0.9 -18.0 -16.3 -19.8 -20.2
Consolidated 1 414.0 1 346.0 118.3 97.1 90.1 76.9
KEY FINANCIAL DATA FOR FISCAL YEAR 2017-2018
May, 2019INVESTORS PRESENTATION60
FREE CASH-FLOW
In M€ 2016-2017 2017-2018
Net indebtedness at the beginning of the FY 742 714
EBITDA 316 297
Variation of working capital needs -43 -68
Other operating items -12 -15
Net industrial investments -38 -46
Activated development costs -165 -171
Operating cash-flow 57 -3
Net financial investments -5 -8
Capital and other equity contributions - -3
Dividends -4 -18
Net financial charges -23 -25
Free cash-flow 25 -57
Other restatements (IFRS/Currency, etc.) 3 5
Net indebtedness at the end of the FY 714 766
KEY FINANCIAL DATA FOR FISCAL YEAR 2017-2018
May, 2019INVESTORS PRESENTATION61
BALANCE SHEET STRUCTURE
Total balance sheet 2 179 2 218
Of which cash 256 197
In M€
Gearing 58%Leverage 2.6
714 766
76 7580 73
1 309 1 304
06.30.2017 06.30.2018
Equity
Provisions
Net deferred taxes
Net indebtedness
492 530
1 687 1 688
Net fixed assets
Net working capitalneeds
KEY FINANCIAL DATA FOR FISCAL YEAR 2017-2018
May, 2019INVESTORS PRESENTATION62
APPENDICESVILMORIN & CIE ORGANIZATION CHART
May, 2019INVESTORS PRESENTATION63
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
May, 2019INVESTORS PRESENTATION64
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
