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Informative meeting
February 25 th 2010
Informative meeting – February 25 th 20102
This presentation contains information of a prospec tive nature which does not necessarily reflect the future performances of Vilm orin, which might turn out to differ noticeably. By its very nature this information is subject to risks and uncertainties. This presentation, with the information it contains , does not constitute a sales or subscription offering, or a request for a proposal to buy or subscribe to shares in any country whatsoever. In France, shares cannot be off ered or sold without a prospectus approved by the AMF (French Stock Exchange Authorit y). Distribution of this presentation may, in certain countries, be subject to certain laws and regulations in force. Persons physically present in countries wher e this document is disseminated, published or distributed should request information about such restrictions and comply with them.The shares referred to in this presentation have no t been and will not be registered in accordance with the U.S. Securities Act of 1933, as amended (the “Securities Act ”) and cannot be offered or sold in the United States without registration or exemption from registration, in compliance with the Securitie s Act. Vilmorin & Cie does not intend to register the offering, whether fully or i n part, in the United States, nor offer shares to the public in the United States.
Informative meeting – February 25 th 20103
Highlights for the 1 st semester
2009-2010
Development strategy End of year challenges
6
AGENDA
2
1
Coming disclosures
Financial statements for the 1st semester 2009-2010
5
4
Project to increase the capital3
Highlights for the 1 st
semester 2009-20101
Informative meeting – February 25 th 20105
Highlights for the 1 st semester 2009-2010
Satisfactory results for the first semester
Sales up by 2.5%*: • Very dynamic vegetable seeds activity overall in sp ite of a difficult vegetable
production market in Europe• Excellent season for rapeseed and a cereals campaig n significantly down in
Europe• Initial stages of the corn campaign in the United S tates on line with objectives• Satisfactory growth for the garden products activit y
Promising results for the first semester• Increase in sales margin• Appreciable increase in the operating margin, like for like• Good control of the financial result• Improvement of the net income for the semester
* Revenue from ordinary activities
like for like
Informative meeting – February 25 th 20106
A successful first semester
Pursuit of the dynamic development policy of the fi rst semester…
External growth operations• Su Tarim. Vegetable seeds. Turkey• Atash. Field seeds. India• Clovis Matton. Field seeds. Belgium• Dahlco. Field seeds. United States
Highlights for the 1 st semester 2009-2010
Research agreements• Don Mario. Field seeds.
Argentina• Arcadia. Wheat. United States• PHRO. Tomato. Poland• AGT. Wheat. Australia
…. which needs to be accelerated in the short term to benefit from historic growth opportunities
Development strategy: historic growth opportunities
2
Informative meeting – February 25 th 20108
Development strategyProfile
A “pure player” in seeds
• 4th largest seeds company in the world, an expert in the creation, production and distribution of high a dded value seeds that contribute to meeting food needs more efficiently.
• Core business based around two activities intended for professional markets:
Vegetable seeds*: 41% of total sales. Operating margin: 17% Field seeds*: 50% of total sales. Operating margin: 9%
Monsanto25 %
Pioneer15 %
Bayer3 %
Autres40 %
KWS3 %
Vilmorin5 %
Syngenta9 %
Source: information from companies.
* Data 2008-2009
Others
Informative meeting – February 25 th 20109
Development strategy
Profile
A specific organization model
• A long-term development vision
• Decentralized and multi-cultural organization
• Strong competitive positionsin key crops
• A successful history of acquisitions, strengthening recurring organic growth
Vegetable seeds Corn Wheat
No. 2 in the world:tomato, melon, carrot, onion, sweet pepper…
No. 3 in Europe
No. 4 in the USA
No. 1in Europe
* Data 2008-2009
Informative meeting – February 25 th 201010
Historic growth opportunities
Solid long-term growth perspectives
• Increase in the world population
• Improvement in the standard of living
• Evolution of consumption habits
• Increase in the rate of use of commercial seeds
• Ever greater use of GM seeds
• Development of industrial applications(agrifuels…)
Development strategy
Growth in the market for seeds:
+ 9 %/year in value from 2003 to 2008
� Vegetable seeds: + 8 %/year
� GM field seeds: + 22 %/year
� Conventional field seeds: + 4 %/year
Source : P. Mc Dougall
Informative meeting – February 25 th 201011
Historic growth opportunities
Growing internationalization markedby the predominance of 3 geographical zones
• Asia: 70% of vegetable crops (production in million s of ha)
• Europe: 59% of world cereal crops
(value in billions of $)
• North America: 50% of world corn crops
(value in billions of $)
Development strategy
Sources: P. Mc Dougall USDA FAO
Europe Asia
North America
Others
32%
17%
36%15%
World seeds markets
($26 Bn. 2008)
32 %
17 %
36 %15 %
Informative meeting – February 25 th 201012
Development strategy Historic growth opportunities
Technological scale-up, a source ofadditional added value and competitiveness
• Industrialization of biotechnologies
• New hybridization process for certain crops:
rape, wheat…
• Implementation of biotechnology platforms
• Strategies of alliances and exchanges of technology
R&D* budgets of the top seeds companies:
� Monsanto: 13.7%
� Dupont: 11.3%
� Syngenta: 16.9%
� Vilmorin: 14.7%
* (% of sales for seeds and traits.Excl. research partnerships)
Sources: internal and company publications
1965 -> 1985 -> 1975 -> 2005 ->1995 ->
In vitro culture GenomicsMolecular marking
Transgenesis
2010 ->
Precision phenotyping
Association ofgenotyping and phenotyping
Developmentstrategy: a change in dimension
Informative meeting – February 25 th 201014
Development strategy A change in dimension
Vegetable seeds : accelerate growth in Asia, partic ularly in India, Japan, Korea… and China
• China: 70% of growth in vegetable surface areas
Corn : gain market shares through innovation by tak ing up positions on the market for grain corn, and by developing pro prietary GM varieties
• Corn acreage in Europe: 61% grain and 39% silage• Growth rate for the GM corn seeds market over the p ast 5 years (in value):
+ 25%/year
Wheat : internationalize European leadership by com bining technological innovations with locations in the mai n producing companies
• Rate of use of commercial seeds in the world: 34%
Consolidate Vilmorin’s growth profileSources: FAO USDA. Eurostat, FNPSMS, internal, P. McDougall, Rabobank
Informative meeting – February 25 th 201015
Development strategy Vegetable seeds: intensify organic growth
Benefit from the full impact of the implementation of business units• Optimization of the current organization, particula rly in the approach to
Asian markets• Commercial development and cover of new territories for expansion• Co-ordination of support functions
Optimize industrial and research tools
Intensify the use of biotech platforms (molecular m arking)
Informative meeting – February 25 th 201016
Australia/New Zealand
JapanChina
India South Korea
IndonesiaThailand
Taiwan
Vietnam
Development strategy
Vegetable seeds: accelerate growth in Asia
Implement a targeted development strategy in accord ance withthe strategic importance of markets and their poten tial for growth
• Optimize the geographical cover of “Business units”• Invest wisely: breeding programs, sales networks…• Select the most pertinent external growth operation s
Strategic markets.
Their size justifies an approach from several angles to become one of the 3 leaders
Key markets.
Their size justifies the direct location of at least 1 business unit
Opportunity markets.
Their size justifies solid positions on targeted segments
Informative meeting – February 25 th 201017
Development strategy
Corn : gain market shares through innovation
Accelerate the marketing of new grain corn varietie s• Diversification of genetic resources• Use of biotechnologies
- High throughput molecular marking
- Quicker properties fixation
• Application of specific skills through a dedicated multi-disciplinary team
Development of proprietary GM corn varieties
61 %
BenefitsExisting
technologyPartners
Insect resistance(European market)
X
Yield improvement -
Tolerance to drought -
Resistance to mycotoxins - Internal
Informative meeting – February 25 th 201018
Build up new sales networks
Set up the conditions for efficient deregulation of innovations
Development strategy
Wheat : internationalize European leadership
Diversify genetic resources throughout the world
Develop proprietary technological innovations
Benefits Partners
GM wheat Optimization in the use of nitrogen / Yield improvement
GM wheat Tolerance to drought
Hybrid wheat Yield improvement
Undergoing partnership
Project to increase the capital
7
Informative meeting – February 25 th 201020
Project to increase the capital
Value � Around €200 million
Allocation of funds� Organic growth
� Strategy for targeted international acquisitions
Structure � Operation maintaining pre-emptive rights aimed primarily at Vilmorin’s existing shareholders
Schedule� Launch of the operation envisaged depending on market
conditions and pending approval from the AMF (French Stock Exchange Authority)
Main features of the operation
Financial statements for the first semester 2009-2010
3
Informative meeting – February 25 th 201022
Operational organization
Vegetable seeds• HM. Clause• Hazera - Nickerson Zwaan• Vilmorin• Mikado Kyowa
Field seeds
• Limagrain Europe
• AgReliant
Garden products
• Oxadis • Suttons
Financial statements 1 st Sem. 2009-2010
Informative meeting – February 25 th 201023
Accounting reference • IFRS on December 31 st 2009
Consolidation scope• Acquisition de Clovis Matton in August 2009 (GI*)• Integration of the company Mikado Dalian (China), s ubsidiary of Mikado Kyowa (GI*),
as of July 2009• Restatement of the Garden Products activity (Oxadis , Suttons) as continuing
operations
Average rate of the main currencies (changes / December 31st 2008)• $ = 1.45 (-3%)• £ = 0.89 (-8%)• ¥ = 133 (+8%)• ILS = 5.52 (-7%)
* GI = global integration
Financial statements 1 st Sem. 2009-2010
Informative meeting – February 25 th 201024
Consolidated sales*in M€
+ 2.7%306314
+ 2.5%
* Revenue from ordinary activities
Like for like
Currency translations
Changes to consolidation scope
5.1
12.31.2008 restated
12.31.2009
4.4
Financial statements 1st Sem. 2009-2010
12.31.2008 disclosed
300
Informative meeting – February 25 th 201025
Sales* per activity
* Revenue from ordinary activities
in M€
Like for like
Currency translations
+ 7.8%161174
+ 8%
Changes to consolidation scope
12.31.2009
0.9
0.6
Financial statements 1st Sem. 2009-2010
12.31.2008 restated
- 0.8%24 24+ 2.4%
12.31.2009
0.7
12.31.2008 disclosed
18
12.31.2008 restated
Vegetable seeds Garden products
Informative meeting – February 25 th 201026
* Revenue from ordinary activities
in M€
Like for like
Currency translations
Changes to consolidation scope
Sales* per activity
- 3.4%120 116
- 4.7%
12.31.2009
2.8 4.5
Financial statements 1st Sem. 2009-2010
Contribution to consolidated sales like for like
North America Europe
-6.5%1079
+22.2%
12.31.2008 restated
Field seeds
Informative meeting – February 25 th 201027
Analysis and evolution of sales* by geographical zone
Europe€162 M - 1%**
Americas€50 M + 13%**
Asia/Oceania€45 M + 10%**
Africa/Middle East€34 M + 9%**
** With data comparable to 2008-2009
Europe
Americas
Africa/ME
Asia
17%
56%12%
15%
* Sales of finished goods
Financial statements 1st Sem. 2009-2010
Informative meeting – February 25 th 201028
129148
Q1 Q4Q3Q2
08-09 08-09
70
126
08-09
78
37
176
83
75
08-09
8
Vegetable seeds
Field seeds Europe
Field seeds North America
449
122
182
102
25
246
* Revenue from ordinary activities
50
84
09-10
in M€
09-10
Analysis per quarter
Garden products
14 15 1043
09-10 09-10
To
be d
iscl
osed
on
05.0
3.20
10
To
be d
iscl
osed
on
08.0
3.20
10
25
166
90
58
99
Financial statements 1st Sem. 2009-2010
Informative meeting – February 25 th 201029
Financial statements 1st Sem. 2009-2010
Income statement
1 Oxadis reintegrated, Suttons in discontinued operati ons 2 Oxadis and Suttons reintegrated/ Tax relief for rese arch restated
In M€ 12.31.2008 disclosed 1
12.31.2008 restated 2
12.31.2009
Sales 299.5 305.8 314.2
Sales margin 133.5 136.6 147.5
Sales margin rate 44.6% 44.7% 46.9%
Operating result (20.2) (22.4) (26.5)
Financial result (10.5) (10.5) (1.0)
Associated companies (0.4) (0.4) (0.2)
Income taxes 3.0 3.3 (2.6)
Discontinued operations (1.1) (0.4) 1.0
Net income (29.2) (30.4) (29.3)
Net income Group share (27.4) (28.5) (25.9)
Informative meeting – February 25 th 201030
Operating charges
Financial statements 1st Sem. 2009-2010
In M€ 12.31.2008 disclosed
12.31.2008 restated
12.31.2009
Marketing and sales (69.6) (72.1) (74.3)
Research and development (38.2) (41.3) (45.9)
Administration and other charges (45.9) (45.6) (53.8)
Net operating charges (153.7) (159.0) (174.0)
Capital gains on the sale of real estate €2.6 M
Provision for reorganization €4.3 M
1 Oxadis reintegrated, Suttons in discontinued operati ons 2 Oxadis and Suttons reintegrated/ Tax relief for rese arch restated
Informative meeting – February 25th 201031
Key figures per activity on 12.31.2009
Financial statements 1st Sem. 2009-2010
* Revenue from ordinary activities
0.6-2,70.6Holdings
1,0--Discontinued operations
-26,5
-7.0
-26,4
9,6
Résultatopérationnel
-4,723.7G
-29,3314.2
-27.9116.1Field seeds
2,7173.8Vegetable seeds
Sales*
-0.4-2.70.6Holdings
1.0--
-26.5
-7.0
-26.4
9.6
Operatingincome
-4.723.7Garden products
-29.3314.2Consolidated
-27.9116.1
2.7173.8
Net incomeIn M€
Informative meeting – February 25th 201032
Balance sheet structure
Fixed assets
Working capital needs
Discontinued operations
ASSETS
Equity
Provisions
Deferred taxes
LIABILITIES
Net indebtedness
Discontinued operations
Financial statements 1st Sem. 2009-2010
* including cash 252 200
Assets
Liabilities
4
253
*
688 670 700
352 337389
908 911960
469 538469
65 716640
4443
9
12.31.2008disclosed
12.31.2008restated
12.31.2009
End of year challenges4
Informative meeting – February 25th 201034
Pursue robust growth of the vegetable seeds activit y and ensure that the sales campaigns for corn in Europe and Nor th America go well
Handle the potential impacts of the volatile prices of agricultural raw materials
Continue sustained investment in research both in v egetable seeds and field seeds, with the specific objective of developingproprietary upstream technologies
Remain proactive with regard to external growth and partnershipsin targeted zones and areas with strong potential… a nd
Succeed with the increase in capital as envisaged i n the best market conditions in order to boost the change in d imension
End of year challenges
5 Coming disclosures
Informative meeting – February 25th 201036
Disclosure of sales for the 3 rd quarter of 2009-2010 (closing on March 31 st 2010) on Monday May 3 rd 2010 at the end of the day
Disclosure of sales for fiscal 2009-2010 (closing o n June 30 th 2010) on Tuesday August 3 rd 2010 at the end of the day
Disclosure of the results for fiscal 2009-2010 (clo sing on June 30 th
2010) on Wednesday October 6 th 2010 at the end of the day
Coming disclosures
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