investors presentation...2 investors presentation june, 2017 disclaimer some of the statements...
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June, 2017INVESTORS PRESENTATION1
INVESTORS PRESENTATION
JUNE 2017
June, 2017INVESTORS 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
June, 2017INVESTORS PRESENTATION3
AGENDA
VILMORIN & CIE AT A GLANCE s. 04
VILMORIN & CIE GROWTH STRATEGY s. 11
HIGHLIGHTS AT THE END OF THE 3RD QUARTER 2016-2017 s. 22
SALES AT THE END OF THE 3RD QUARTER 2016-2017 s. 26
OUTLOOK 2016-2017 AND MID-TERM AMBITIONS s. 35
VILMORIN & CIE ON THE STOCK EXCHANGE s. 43
SCHEDULE AND CONTACTS s. 46
APPENDICES s. 49
June, 2017INVESTORS PRESENTATION4
4
VILMORIN & CIE AT A GLANCE
June, 2017INVESTORS 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 1743and 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°1in Europe
for straw
cereals (1)
N°3in North
America for
corn seeds
N°4in Europe
for corn
seeds
(1) Wheat and barley
June, 2017INVESTORS 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
June, 2017INVESTORS PRESENTATION7
A SOLID TRACK RECORD
VILMORIN & CIE AT A GLANCE
In M€
Integration of European
and US field seeds
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
43.8
54.8
44.353.0 54.1
91
80.6
99.4
84.1
72.9
59.3494
939 8971 002
1 064
1 192
1 338
1 472 1 500 1 5311 627
1 2691 325
0
20
40
60
80
100
120
140
0
200
400
600
800
1000
1200
1400
1600
1800
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Vegetable seeds acquisition
Tropdicorp/Vietnam
Shamrock / USA and Mexico
Canterra Seeds / Canada(*)
Genica Research / USA
Su Tarim / Turkey
Meza Maize / USA
61.7
29.3
June, 2017INVESTORS 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:
June, 2017INVESTORS PRESENTATION9
Investors
(of which ~53%
internationally
based: USA, UK,
Singapore,
Belgium…)
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 31th 2017
6.60%
19.60%
73.80%
Groupe Limagrain*
Individual shareholders
* of which BPI France as a strategic shareholder of Limagrain
Sources: Euroclear and Euronext
TOTAL NUMBER OF SHARES:
20 833 902
VILMORIN & CIE AT A GLANCE
June, 2017INVESTORS 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 and Soltis.
VILMORIN & CIE AT A GLANCE
STRATEGY
KEY FIGURES
To provide farmers throughout the world with sustainable solutions to improve their farms' profitability
Nearly 2,000 farmer membersClose to 2.5 billion Euros in salesMore than 10,000 employees
June, 2017INVESTORS PRESENTATION11
11
VILMORIN & CIE GROWTH STRATEGY
June, 2017INVESTORS 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 (2015)
(CAGR between 2010 and 2015)
Field Seeds –
Conventional seeds
Field Seeds –
GM seeds
13,9 %
32,9 %
53,2 %
MARKET VALUE 2015:
$37.2 BN. GLOBAL CAGR: +3,8% / YEAR
Sources: Phillips McDougall 2016 and ISAAA 2016
June, 2017INVESTORS PRESENTATION13
1/ MARKET FOR SEEDS: SLIGHT SLOWDOWN FOR GMO IN 2015
VILMORIN & CIE GROWTH STRATEGY
WORLD MARKET ACREAGE
179.7 million hectares (around 10% of arable land), -1% / 2014,
grown by 18 million farmers in 28 countries
Sources: ISAAA 2016. Phillips McDougall 2016
WORLD MARKET VALUE
$20 billion in 2015 (i.e. 53 % of the world market for seeds), -6% / 2014
0
20
40
60
80
100
120
140
160
180
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Others
China
India
Canada
Argentina
Brazil
USA
million ha180
125134
148
160
170175
182GMO :
ACREAGE PER COUNTRY
June, 2017INVESTORS PRESENTATION14
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
Seeds companies – Sales* in millions of euros – 2016(KWS, Monsanto and Vilmorin & Cie : 2015-2016 data). Vilmorin & Cie : excluding Garden products.
Sources: Company publications and internal. 2016
0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000
Sakata
Rijk Zwaan
DLF
Bayer
KWS
Dow
Vilmorin & Cie
Syngenta
Dupont Pioneer
Monsanto
Semences potagères Semences de grandes cultures
388
270
Bayer/ Monsanto
+ ChemChina
9 080
6 019
2 415
1 573Dow Dupont
1 409
1 357
1 356
480
27%
18%
8%5%4%
4%4%
30%
Dupont Pioneer
Syngenta
KWS
Bayer
Vilmorin & Cie
Monsanto
Others
Dow
*Without IFRS 11 impact
Vilmorin & Cie
Vegetable seeds
Field seeds
June, 2017INVESTORS PRESENTATION15
2/ A STRATEGY OF WINNING MARKET SHARES
VILMORIN & CIE GROWTH STRATEGY
3 strategic priorities
3 strategic foundations
INNOVATION TARGETED POLICY OF
EXTERNAL GROWTHINTERNATIONALIZATION
Vegetable seeds: reinforce world leadership
Corn seeds: become a global actor
Wheat seeds : become the world reference
June, 2017INVESTORS PRESENTATION16
34%
32%
17%
17%
3 / VEGETABLE SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
Tomato
Sweet and hot pepper
Carrot
Melon
BeanSquashOnion
Others
SALES OF VEGETABLE SEEDSPER CROP. 2015-2016
SALES OF VEGETABLE SEEDSPER GEOGRAPHICAL AREA. 2015-2016
Europe
Americas
Africa / Middle East
Asia / Oceania
KEY FIGURES 2015-2016
31689
15.9%
COUNTRIES
WITH
LOCATIONS
M€
SALES
OPERATING
MARGIN
Current operating margin : 16.2%
1
3
1
1
21
1,2,3: worldwide competitive positions
N°2In 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.)
June, 2017INVESTORS PRESENTATION17
3 / VEGETABLE SEEDS. STRATEGY
VILMORIN & CIE GROWTH 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)
CAMPBELLS’ SEEDSSeptember 2012
Tomato and pepper
United States
Sales: more than 5 M$
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$
Recent acquisitions:
June, 2017INVESTORS PRESENTATION18
54%40%
4% 2%
4 / FIELD SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
SALES OF FIELD SEEDS*PER GEOGRAPHICAL AREA. 2015-2016
Europe
Americas
Asia / Oceania
KEY FIGURES 2015-2016
33
582
1.8%
COUNTRIES
WITH
LOCATIONS*
M€
SALES
OPERATING
MARGIN
Current operating margin : 2.8%
(884 M€)*
N°1In Europe
for straw
cereals
N°3In North
America
And N°4In 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
10%
3%
4%
14%
69%
SALES OF FIELD SEEDS*PER CROP. 2015-2016
Cereals (corn,
wheat, barley)
Other field seeds
Rapeseed
Feed grains
Sunflower
(1) Wheat and barley
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)
(1)
June, 2017INVESTORS PRESENTATION19
4 / CORN SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
CORN SEEDS: BECOME A GLOBAL ACTOR
SEED COMinority stake. 2014
#1 African seeds company
Sales: 96 M$
5 factories & 6 research stations in south
east Africa
SEED ASIAMarch 2014
Hybrid tropical corn
Thailand
Sales: 9 M$
HENGJI LIMAGRAIN SEEDSJV. September 2015
Corn
China
Production and distribution
Technological strategic partnership between Vilmorin & Cie and KWS
*Source: ISAAA 2016
Internationalize activitiesfurther afield from European and North American activities on the largest world seed market in terms of value
(about $15 bn in 2015*)
GM corn traits licensing agreements with Syngenta (October 2015)
Develop a proprietary portfolio of GM seeds
Recent acquisitions:
June, 2017INVESTORS PRESENTATION20
4 / WHEAT SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
WHEAT SEEDS: BECOME THE WORLD REFERENCE
*Source: ISAAA 2016
Consolidate position of leader in Europe and become the world reference of the first worldwide crop in terms of cultivated surface areas (≈ 222 million hectares in 2015*)
Develop more efficient seeds and contributeto converting the market to high yield 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
June, 2017INVESTORS PRESENTATION21
5/ R&D: INNOVATE TO INSURE TOMORROW’S GROWTH
VILMORIN & CIE GROWTH STRATEGY
2015-2016
*of which €225 million research investments without integrating partnerships
€300 MILLION
RESEARCH INVESTMENT
INTEGRATING PARTNERSHIPS*
MORE THAN
14%INVESTED IN BIOTECHNOLOGIES
Maintain regular investment in research (breeding and biotechnologies) and broaden the partnerships
1,036 1,086 1,120 1,180
255 242261
302
183 194 211 225
14.2% 14.6% 15.3% 15.2%
17.4% 17.4%18.9% 19.1%
0
200
400
600
800
1 000
1 200
1 400
1 6002012-2013 2013-2014 2014-2015 2015-2016
Effort de recherche
Chiffre d'affaires semences AgReliant (à 50%)
Chiffre d'affaires semences
Effort de recherche/chiffre d'affaires semences (yc AgReliant 50%)
Effort de recherche/chiffre d'affaires semences (IFRS 11)
Investment in research
AgReliant’ sales of seeds (50%)
Sales of seeds
Investment in research/Sales of seeds (incl. 50% AgReliant)
Investment in research/Sales of seeds (IFRS 11)
June, 2017INVESTORS PRESENTATION22
22
HIGHLIGHTS AT THE END OF THE 3RD
QUARTER 2016-2017
June, 2017INVESTORS PRESENTATION23
KEY POINTS
Significant increase in sales for the 3rd quarter 2016-2017: +5.7%*
Strong growth in aggregate sales (9 months): +8.1%*
Fine performance of the Vegetable seeds activity: +5.1%*
Confirmed upturn in business for the Field seeds activity, in a market context that remains difficult: +11.7%*
Outlook for 2016-2017
Confirmation of the global objective for business growth
Upward adjustment of the current operating margin
* On a like-for-like basis
June, 2017INVESTORS PRESENTATION24
VEGETABLE SEEDS. AFRICA. MARCH 2017
VILMORIN & CIE LATEST NEWS
Context:
Minority stake of Vilmorin & Cie, since 2013-2014, in Seed Co (30.4%), the largest seed company in Africa
Entry of Seed Co, already solidly established in South East Africa (mainly in corn), into the vegetable seed market in 2015: acquisition of Prime Seed in Zimbabwe
Objective:Take up position, as a result of the numerous synergies between the twocompanies, on a vegetable seed market with enormous potential fordevelopment in Sub-Saharan Africa.
Creation of a joint venture in Vegetable seeds “Prime Seed Co”
between Vilmorin & Cie and Seed Co in Africa*
* Joint venture set up operationally between Seed Co (holding 51% of the capital stock) and the Vegetable seeds Business Unit HM.CLAUSE
June, 2017INVESTORS PRESENTATION25
WHEAT SEEDS. UNITED STATES. MARCH 2017
VILMORIN & CIE LATEST NEWS
Reminder:
Minority stake of 35% held by Arcadia Biosciences, since 2010, in Limagrain Cereal Seeds, the Vilmorin & Cie Business Unit devoted to the development of wheat seed in North America
Minority stake held by Vilmorin & Cie (< 4%) in Arcadia Biosciences, listed on the NASDAQ since May 2015
Renegotiation of the partnership with Arcadia Biosciences (United States. Wheat)
Vilmorin & Cie and Arcadia Biosciences, an American biotechnologycompany, terminate (end of March 2017) their system of crossshareholdings set up in 2010.
The two companies envisage pursuing their scientific partnership, particularly with
regard to research in wheat.
June, 2017INVESTORS PRESENTATION26
26
SALES AT THE END OF THE 3RD QUARTER 2016-2017
June, 2017INVESTORS PRESENTATION27
REFERENCES
SALES AT THE END OF THE 3RD QUARTER 2016-2017
average close
2016 2017 2016 2017
$ 1.10 1.09 1.14 1.07
¥ 132 118 128 120
£ 0.74 0.86 0.79 0.86
TRY 3.20 3.60 3.21 3.89
ILS 4.28 4.12 4.30 3.89
BRL 4.15 3.51 4.12 3.38
INR 73 73 75 69
MXN 18.84 21.31 19.59 20.02
UAH 26 28 30 29
RUB 75 68 76 60
Accounting reference
IFRS on March 31, 2017
Rates of the main currencies on March 31, 2017 (and March 31, 2016)
June, 2017INVESTORS PRESENTATION28
CONSOLIDATED SALES*
AT THE END OF THE THIRD QUARTER
THIRD QUARTER
* Revenue from ordinary activities
* of which:
Vegetable seeds: 212
Field seeds: 330
SALES AT THE END OF THE 3RD QUARTER 2016-2017
In M€
533
567*3
31
mar.-16 Impactdevises
Activité mar.-17
+6.4%
+5.7%
990
1 070
0.5
80
mar.-16 Impactdevises
Activité mar.-17
+8.1%
+8.1%
March 16 Mars 17 Mars 16 Mars 17March 16March 17 March 17Currency
impact
Currency
impact
Activity Activity
June, 2017INVESTORS PRESENTATION29
SALES* OF VEGETABLE SEEDS
THIRD QUARTER
* Revenue from ordinary activities
SALES AT THE END OF THE 3RD QUARTER 2016-2017
471
4994
24
mar.-16 Impactdevises
Activité mar.-17
+5.9%
+5.1%
200
212
210
mar.-16 Impactdevises
Activité mar.-17
+6.3%
+5.0%
In M€
AT THE END OF THE THIRD QUARTER
Mars 16 Mars 17Mars 16 Mars 17
March 16March 16March 17
March 17Currency
impactCurrency
impact
Activity Activity
June, 2017INVESTORS PRESENTATION30
SALES OF VEGETABLE SEEDS
SALES AT THE END OF THE 3RD QUARTER 2016-2017
37%
30%
18%
15%
Context of a dynamic market, which is however less buoyant at
the moment in certain territories (Italy, Spain, Mexico)
Very good level of sales, bearing in mind the high reference
base of fiscal year 2015-2016
Significant business growth of the three Business Units in all
the geographical zones
Increase in sales once again very strong at the end of the
quarter, demonstrating that the European market is picking up
and in North America business is extremely dynamic
Great success for certain strategic crops: carrot, hot and sweet
pepper and summer squash in particular
Programmed run-down of the agricultural supplies and
equipment activity of the Business Unit Vilmorin-MKS pursued
in Japan
Europe
Africa / Middle East
Asia / Oceania
Americas
ANALYSIS OF SALES*
OF VEGETABLE SEEDS PER GEOGRAPHICAL ZONE
A quarter with solid growth
* Sales of products
June, 2017INVESTORS PRESENTATION31
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)
SALES AT THE END OF THE 3RD QUARTER 2016-2017
479
532
56
-3
mar.-16 Impactdevises
Activité mar.-17
+11.0%
+11.7%
308
330
1
21
mar.-16 Impactdevises
Activité mar.-17
+7.0%
+6.7%
In M€
Mars 16 Mars 17Mars 16 Mars 17
March 16March 16
March 17March 17
Currency
impact Currency
impact
ActivityActivity
June, 2017INVESTORS PRESENTATION32
SALES OF FIELD SEEDS
SALES AT THE END OF THE 3RD QUARTER 2016-2017
447234
84
Corn and sunflower. Europe
Growing business, in a context marked again this year by considerable
pressure on prices
Further drop in the sales of corn seeds:Direct consequence of the predicted decrease in cultivated acreage, mainly
in Western Europe (especially in France)
In spite of a commendable increase in business in Eastern Europe, where
market shares gains were achieved
Very strong increase in the sales of sunflower seeds, mainly in key markets:
Ukraine and Russia
Corn. South America
Extremely powerful business growth for the second sales campaign in Brazil
(Safrinha), resulting in market share gains
Corn. North America (AgReliant)
Drop in volumes of corn seeds brought to market, proportionately to the
lower acreage predicted for this crop
Corn. Africa (Seed Co)
Strong increase in sales of corn seed
Europe
North
America
(AgReliant)
Other zones
ANALYSIS
PER GEOGRAPHICAL ZONE(evolution on a like-for-like basis,
before application of IFRS 11)
(+5.6%)
(-6.1%)
(+61.4%)
TOTAL SALES
(including AgReliant): €765 M
Confirmed upturn in business in an environment that remains difficult
In M€
June, 2017INVESTORS PRESENTATION33
CONSOLIDATED SALES* PER GEOGRAPHICAL ZONE
SALES AT THE END OF THE 3RD QUARTER 2016-2017
Americas
€226 M. +24.1%**
Africa/Middle East €107 M. +2.9% **
Europe
€595 M. +3.7%**
Asia/Oceania
€107 M. +10.8%**
60 %
10 %
58%
22%
10%
10%Africa/
Middle East
Americas
Asia / Oceania
Europe
* Sales of products
** With current data compared with 2015-2016
June, 2017INVESTORS PRESENTATION34
CONSOLIDATED SALES* PER QUARTER
SALES AT THE END OF THE 3RD QUARTER 2016-2017
* Revenue from ordinary activities
8 8 6 625 25 1513 22 15 3719 25
11
66 63 77
79
289305
92
122138
149
149
200
212
218
Q1 15-16 Q1 16-17 Q2 15-16 Q2 16-17 Q3 15-16 Q3 16-17 Q4 15-16 Q4 16-17
In M€
210
247
533
335
232
Vegetable seeds
Field seeds Europe
Field seeds other zones
Garden products and Holdings
SALES*
PER QUARTER
Dis
clo
su
re o
n J
uly
31
, 2
01
7
271
___
567
June, 2017INVESTORS PRESENTATION35
OUTLOOK 2016-2017AND MID-TERM AMBITIONS
June, 2017INVESTORS PRESENTATION36
VEGETABLE SEEDS
OUTLOOK FOR THE END OF FISCAL YEAR 2016-2017
Outlook for the end of the fiscal year:
Objective for Vegetable seeds sales readjusted slightly lower
Challenges for the end of the fiscal year:
Market share gains and confirmation of the strong growth of the
Vegetable seeds activity over the fourth quarter, with a high
reference base for 2015-2016
Objective
Sales = +6%*
* On a like-for-like basis.
June, 2017INVESTORS PRESENTATION37
FIELD SEEDS
OUTLOOK FOR THE END OF FISCAL YEAR 2016-2017
Definitive evolution of corn and sunflower acreage
Resistance to the persistent pressure on prices
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 raised
Objective
Sales > +5%*
* On a like-for-like basis
June, 2017INVESTORS PRESENTATION38
CONFIRMATION OF THE GLOBAL SALES OBJECTIVE
OUTLOOK FOR THE END OF FISCAL YEAR 2016-2017
OBJECTIVE PRESENTED IN FEBRUARY 2017* (following disclosure of the results for the first semester)
Sales
of which:
Vegetable seeds
Field seeds
+5%
> 7%
> 2%
* On a like-for-like basis
Sales objective for 2016-2017 :
Achieve significant growth in business,
in market conditions that remain tense for field seeds
and characterized by consolidation operations in the agrochemical sector
OBJECTIVE PRESENTED AT THE END OF THE 3RD QUARTER*
Sales
of which:
Vegetable seeds
Field seeds
> 5%
+6%
> 5%
June, 2017INVESTORS PRESENTATION39
UPWARD ADJUSTMENT OF THE CURRENT OPERATING MARGIN
OUTLOOK FOR THE END OF FISCAL YEAR 2016-2017
OBJECTIVE PRESENTED IN FEBRUARY 2017 (following disclosure of the results for the first semester)
Current operating
margin
~ 8.4%
(which is the same level as in
2015-2016) including a research
investment of more than €240 M
Current operating margin objective for 2016-2017:
REVISED OBJECTIVE (at the end of the 3rd quarter)
Current operating
margin
9.0%
including a research investment
of more than €240 M
The fruit, in particular, of the implementation,
as of April 2016,
of the operational action plan
Aim for a contribution from the companies it consolidates under the equity method, at least equivalent to 2015-2016
While continuing to deploy the strategy of development and innovation, in a long-term vision,
and relying on the complementarity of the two strategic activities
June, 2017INVESTORS PRESENTATION40
REMINDER OF THE STRATEGIC AMBITIONS FOR 2020
MID-TERM AMBITIONS
Accelerate development to reach business growth higher than market trends and increase operating margins, both in Vegetable Seeds and Field Seeds
Consolidate the financial profile, both in terms of leverage (aiming a level of between 1.5 and 2) and indebtedness (with gearing lower than 40%), making sure in particular to increase cash generation
Materialize the 3 strategic priorities:
VEGETABLE SEEDS
REINFORCE WORLD LEADERSHIP
CORN SEEDS
BECOME A GLOBAL PLAYER
WHEAT SEEDS
ULTIMATELY BECOME THE WORLD REFERENCE
June, 2017INVESTORS PRESENTATION41
REMINDER OF AMBITIONS FOR 2020. VEGETABLE SEEDS
MID-TERM AMBITIONS
Pursue the strategy of combining organic and external growth
Regular renewal and optimization of the product portfolio
Even greater proximity to markets
Targeted external growth operations
Continue to increase value in emerging markets
AVERAGE SALES GROWTH
OF MORE THAN 5% PER YEAR
REACH AN ANNUAL OPERATING MARGIN LEVEL OF 18%
AMBITION FOR 2020
June, 2017INVESTORS PRESENTATION42
REMINDER OF AMBITIONS FOR 2020. FIELD SEEDS
MID-TERM AMBITIONS
Continue the strategy of innovation and internationalization
Quality of the products pipeline
International deployment
Development of a proprietary range of genetically modified varieties
REACH SALES
OF AROUND 1 BILLION EUROS
AND AN ANNUAL OPERATING MARGIN LEVEL OF 10%
(INCLUDING AGRELIANT AT 50%)
AMBITION FOR 2020
June, 2017INVESTORS PRESENTATION43
VILMORIN & CIEON THE STOCK EXCHANGE
June, 2017INVESTORS PRESENTATION44
(Source: Euronext.com)
€72.42SHARE PRICE
ON JUNE 23RD, 2017
VILMORIN & CIE ON THE STOCK EXCHANGE
EVOLUTION OF THE SHARE PRICE
Vilmorin & Cie :
Vilmorin & Cie
CAC 40MARKET CAPITALIZATION
ON JUNE 23RD, 2017
€1.5 BN.
+ 20% 10 years + 14.5% 5 years + 25% 1 year
June, 2017INVESTORS PRESENTATION45
VILMORIN & CIE ON THE STOCK EXCHANGE
DIVIDENDS (1)
* Capital gain from the disposal of a minority stake in China.
(1) Data restated for the allotment of free shares of January 2013 and January 2015.
28.4%Pay-out 35.3% 31.4% 37.2% 44.8% 38.6%
4.37
3.87
4.77
4.04
3.50
2.85
1.24 1.36 1.50 1.50 1.571.10
2011 2012 2013 2014 2015 2016
Profit (group share) per share Dividend
1.40*
June, 2017INVESTORS PRESENTATION46
SCHEDULE AND CONTACTS
June, 2017INVESTORS PRESENTATION47
MONDAY JULY 31, 2017, AFTER TRADING
Disclosure of sales for fiscal year 2016-2017 (on June 30, 2017)
WEDNESDAY OCTOBER 18, 2017, AFTER TRADING
Disclosure of results for fiscal year 2016-2017 (on June 30, 2017)
MONDAY NOVEMBER 6, 2017, AFTER TRADING
Disclosure of sales at the end of the first quarter 2017-2018 (on September 30, 2017)
SCHEDULE
June, 2017INVESTORS PRESENTATION48
Daniel JACQUEMOND
Chief Financial Officer
FOR ANY FURTHER INFORMATION:
CONTACTS
Clémence DATURI
Financial Communication Officer
and Individual Shareholders Relations
Valérie MONSERAT
Head of Financial Communication
and Investor Relations
All our financial information on
www.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
June, 2017INVESTORS PRESENTATION49
APPENDICESMarket contextKey financial data for fiscal year 2015-2016Organization chart
June, 2017INVESTORS PRESENTATION50
APPENDICESMarket context
June, 2017INVESTORS PRESENTATION51
50
100
150
200
250
300
aoû
t-1
2o
ct.
-12
déc.-
12
févr.
-13
avr.
-13
juin
-13
aoû
t-1
3o
ct.
-13
déc.-
13
févr.
-14
avr.
-14
juin
-14
aoû
t-1
4o
ct.
-14
déc.-
14
févr.
-15
avr.
-15
juin
-15
aoû
t-1
5o
ct.
-15
déc.-
15
févr.
-16
avr.
-16
juin
-16
aoû
t-1
6o
ct.
-16
déc.-
16
Blé rendu Rouen Maïs rendu Bordeaux
FIELD SEEDS TRENDS
Price levels for agricultural production
MARKET CONTEXT
Price of corn. Bordeaux: 166 €/tn.
Price of wheat. Rouen: 166 €/tn.
February 2017
Corn, soybean and wheat prices. Chicago
Corn: 146 $/t
Soybean: 389 $/t
Wheat: 159 $/t
February 2017
50
150
250
350
450
550
650
aoû
t-1
2o
ct.
-12
déc.-
12
févr.
-13
avr.
-13
juin
-13
aoû
t-1
3o
ct.
-13
déc.-
13
févr.
-14
avr.
-14
juin
-14
aoû
t-1
4o
ct.
-14
déc.-
14
févr.
-15
avr.
-15
juin
-15
aoû
t-1
5o
ct.
-15
déc.-
15
févr.
-16
avr.
-16
juin
-16
aoû
t-1
6o
ct.
-16
déc.-
16
Blé US Chicago Maïs US Chicago Soja Chicago
Sources: Cereals market - FranceAgriMer, IGC, La dépêche. November 2016
June, 2017INVESTORS PRESENTATION52
FIELD SEEDS TRENDS
MARKET CONTEXT
Sources: internal estimates
Corn
Sunflower
United States
↘ Acreage
Europe 28
↘ Acreage
Greater Europe
↘ Acreage
Brazil
↗ Safra acreage
↗ Safrinha acreage
Europe 28
↗ Acreage
Greater Europe
↗ Acreage
Low level of prices for agricultural raw materials
Trends in the evolution of acreage
A market context that remains difficult for field seeds
June, 2017INVESTORS PRESENTATION53
APPENDICESKey financial data for fiscal year 2015-2016
June, 2017INVESTORS PRESENTATION54
INCOME STATEMENT FOR FISCAL YEAR 2015-2016 (CLOSING JUNE)
VILMORIN & CIE KEY FINANCIALS
(1) The current operating margin is defined as the operating margin in the accounts restated for impairments, reorganization costs and certain items
of an extraordinary nature(additional procurement costs and partial allocation of goodwill in 2015-2016).
In M€ 2014-2015 2015-2016 Variation
Sales 1 269.4 1 325.1 +4.4%
Sales margin 603.3 632.2 +28.9 M€
Sales margin rate 47.5% 47.7% +0.2 pt
Operating income 100.2 100.3 +0.1 M€
Operating margin rate 7.9% 7.6% -0.3 pt
Current operating margin rate(1) 8.0% 8.4% +0.4 pt
Financial income -39.2 -36.5 -(2.7) M€
Income from associated companies 29.4 30.8 +1.4 M€
Income taxes -14.5 -33.8 +(19.3) M€
Net income 75.9 60.8 -15.1 M€
Net income Group share 72.9 59.3 -13.6 M€
June, 2017INVESTORS PRESENTATION55
KEY FIGURES CONTRIBUTED TO CONSOLIDATED SALES PER DIVISION FOR FISCAL YEAR 2015-2016
VILMORIN & CIE KEY FINANCIALS
* Revenue from ordinary activities
In M€ Sales* Operating income Net income
2014-15 2015-16 2014-15 2015-16 2014-15 2015-16
Vegetable seeds 614.6 688.7 95.8 109.3 63.9 71.6
Field seeds 595.3 581.7 20.9 10.6 20.7 17.3
Garden products 58.4 53.6 -0.7 -4.6 -1.3 -4.6
Holdings 1.1 1.1 -15.8 -15.0 -7.4 -23.5
Consolidated 1,269.4 1,325.1 100.2 100.3 75.9 60.8
June, 2017INVESTORS PRESENTATION56
FREE CASH FLOW
VILMORIN & CIE KEY FINANCIALS
(1) EBITDA is defined as follows: Operating income + Net depreciation & amortization + Net impairment
In M€ 2014-2015 2015-2016
Net indebtedness at the beginning of the FY 515 660
EBITDA(1) 263 278
Variation of working capital needs (44) 20
Other operating items (41) (28)
Net industrial investments (62) (46)
Activated development costs (148) (157)
Operating cash-flow (32) 68
Net financial investments (62) (116)
Capital and other equity contributions - (1)
Dividends (21) (10)
Net financial charges (28) (23)
Free cash-flow (142) (83)
Other restatements (IFRS/ Currency, etc.) (4) 1
Net indebtedness at the end of FY 660 742
June, 2017INVESTORS PRESENTATION57
BALANCE SHEET STRUCTURE
VILMORIN & CIE KEY FINANCIALS
660 742
63 646989
1,2721,264
30.06.2015 30.06.2016
Total balance sheet 2,064
* of which cash 373 207
In M€
Gearing 59%
Leverage 2.72,159
501 468
1,563 1,691
30.06.2015 30.06.2016
Assets
Net fixed assets
Net working capital needs
Liabilities
Equity
Provisions
Net deferred taxes
Net indebtedness
June, 2017INVESTORS PRESENTATION58
APPENDICESVILMORIN & CIE ORGANIZATION CHART
June, 2017INVESTORS PRESENTATION59
FIELD SEEDS
Limagrain Europe
AgReliant (corn, soybean)
Limagrain Asia
Limagrain Cereal Seeds (wheat)
Limagrain South America
Limagrain Africa
ORGANIZATION CHART
VEGETABLE SEEDS
HM.CLAUSE
Hazera
Vilmorin-MKS
June, 2017INVESTORS PRESENTATION60
THANK YOUVILMORIN & CIE
Head Office : 4 Quai de la Mégisserie – F - 75001 PARIS
Postal address : CS 20001 Saint-Beauzire - 63360 GERZAT
Tel. + 33 (0)4 73 63 44 85
www.vilmorincie.com