Post on 26-Aug-2020
May, 2018INVESTORS PRESENTATION1
MAY, 2018
INVESTORS PRESENTATION
May, 2018INVESTORS 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, 2018INVESTORS PRESENTATION3
AGENDA
VILMORIN & CIE AT A GLANCE s. 04
VILMORIN & CIE GROWTH STRATEGY s. 11
SALES AT THE END OF THE 3RD QUARTER 2017-2018 s. 22
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018 s. 33
VILMORIN & CIE ON THE STOCK EXCHANGE s. 38
SCHEDULE AND CONTACTS s. 41
APPENDICES s. 44
May, 2018INVESTORS PRESENTATION4
4
VILMORIN & CIE AT A GLANCE
May, 2018INVESTORS 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
May, 2018INVESTORS 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, 2018INVESTORS PRESENTATION7
43.8
54.8
44.3
53.0 54.1
80.6
99.4
84.1
72.9
59.3
86.9
494
939897
1 0021 064
1 192
1 338
1 472 1 500 1 531
1 6271 715
1 2691 325
1 414
0
20
40
60
80
100
120
140
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
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
Vegetable Seeds acquisition
Tropdicorp/Vietnam
Shamrock / USA and
Mexico
Canterra Seeds / Canada(*)
Genica Research / USA
Su Tarim / Turkey
Meza Maize / USA
29.3
61.7
May, 2018INVESTORS 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, 2018INVESTORS 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 DECEMBER 31st 2017
5.75%
20.47%
73.78%
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
May, 2018INVESTORS 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
Develop the current position as an international seedcompany from the cooperative base in France
Nearly 2,000 farmer membersMore than 2.6 billion euros in salesMore than 10,000 employees
May, 2018INVESTORS PRESENTATION11
11
VILMORIN & CIE GROWTH STRATEGY
May, 2018INVESTORS 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 (2016)
(CAGR between 2011 and 2016)
Field seeds –
Conventional seeds
Field seeds –
GM seeds
14,1 %
30,6 %
55,3 %
MARKET VALUE 2016:
$36.9 BN. GLOBAL CAGR: +1,4% / YEAR
Sources: Phillips McDougall 2017 and ISAAA 2017
May, 2018INVESTORS PRESENTATION13
1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2016
VILMORIN & CIE GROWTH STRATEGY
WORLD MARKET ACREAGE
185.1 million hectares (around 10% of arable land), +3% / 2015,
grown by 18 million farmers in 26 countries
Sources: ISAAA 2017. Phillips McDougall 2017
WORLD MARKET VALUE
More than $20 billion in 2016 (i.e. 55 % of the world market for seeds), +3% / 2015
million ha
185GMO :
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
Others
China
India
Canada
Argentina
Brazil
USA
May, 2018INVESTORS 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 – 2017(Monsanto, Vilmorin & Cie, KWS and Rijk Zwaan: data 2016-2017)
(Vilmorin & Cie: sales excluding Garden products and without IFRS 11 impact)
(Bayer : estimations of the repartition between Field seeds and Vegetable seeds)Sources: Company publications and internal. 2016
KWS
Vegetable seeds
Field seeds
0 2 000 4 000 6 000 8 000 10 000 12 000
LPHT
Sakata
Nidera
Rijk Zwaan
DLF
KWS
Bayer
Vilmorin & Cie
Syngenta / Chemchina
Corteva (Dow Dupont)
Monsanto
+ ≈ 260 M€ with Citic
- 1396 M€ acquired by BASF
Bayer / Monsanto
+ ≈ 160 M€ were acquired from Syngenta (sugar beet)
7,541 - ≈ 260 M€ acquired by Citic
1,663
1,394
420
474
306
304
2,593 - ≈ 160 M€ acquired by DLF (sugar beet)
10,012
1,503 32%
24%8%
5%
4%
5%
22%
Corteva
(DowDupont)Syngenta - ChemChina
Bayer
Vilmorin & Cie
Others
323
Monsanto
May, 2018INVESTORS 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
May, 2018INVESTORS PRESENTATION16
34%
33%
17%
16%
3 / VEGETABLE SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
Tomato
Sweet and hot pepper
Carrot
Melon
SquashBeanOnion
Others
SALES OF VEGETABLE SEEDSPER CROP. 2016-2017
SALES OF VEGETABLE SEEDSPER GEOGRAPHICAL AREA. 2016-2017
Europe
Americas
Africa / Middle East
Asia / Oceania
KEY FIGURES 2016-2017
32736
17.1%
COUNTRIES
WITH
LOCATIONS
M€
SALES
OPERATING
MARGIN
Current operating margin : 17.3%
1
3
1
1
22
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.)
May, 2018INVESTORS 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:
May, 2018INVESTORS PRESENTATION18
52%
42%
3% 3%
4 / FIELD SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
SALES OF FIELD SEEDS*PER GEOGRAPHICAL AREA. 2016-2017
Europe
Americas
Asia / Oceania
KEY FIGURES 2016-2017
33
626
2.7%
COUNTRIES
WITH
LOCATIONS*
M€
SALES
OPERATING
MARGIN
Current operating margin : 3.6%
(928 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 and in South Africa
11%
4%
4%
15%
66%
SALES OF FIELD SEEDS*PER CROP. 2016-2017
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)
May, 2018INVESTORS PRESENTATION19
4 / CORN SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
CORN SEEDS: BECOME A GLOBAL ACTOR
SEED COMinority stake. 2014
#1 African seeds company
Sales: 135 M$
6 factories & 8 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: USDA
Internationalize activitiesfurther afield from European and North American activities on the largest world seed market in terms of value
(more than $15 bn in 2016*)
GM corn traits licensing agreements with Syngenta (October 2015)
Develop a proprietary portfolio of GM seeds
Recent acquisitions:
May, 2018INVESTORS PRESENTATION20
4 / WHEAT SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
WHEAT SEEDS: BECOME THE WORLD REFERENCE
*Source: USDA
Consolidate a position of leader in Europe and become the world reference of the first worldwide crop in terms of cultivated surface areas (more than 220 million hectares in 2016*)
Develop more efficient seeds and 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
May, 2018INVESTORS PRESENTATION21
5/ R&D: INNOVATE TO INSURE TOMORROW’S GROWTH
VILMORIN & CIE GROWTH STRATEGY
2016-2017
*of which €240 million research investments without integrating partnerships
€310 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 1,274
255 242261
302301
183 194 211 225 240
14.2% 14.6% 15.3% 15.2% 15.2%
17.4% 17.4%18.9% 19.1% 18.8%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 8002012-2013 2013-2014 2014-2015 2015-2016 2016-2017
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)
May, 2018INVESTORS PRESENTATION22
SALES AT THE END OF THE3RD QUARTER 2017-2018 (ON MARCH 31, 2018)
May, 2018INVESTORS PRESENTATION23
KEY POINTS
A 3rd quarter 2017-2018 down by 1.7%*, marked by temporary difficulties for
the Vegetable Seeds and Field Seeds activities
Decrease in the aggregate sales (9 months): -2.6%*Vegetable Seeds activity affected by a more contrasted market context: -3.5%*
A decrease for Field Seeds globally in line with market trends: -1.3%*
Readjustment of objectives for 2017-2018Slight increase in sales
Reduction of the current operating margin rate
SALES AT THE END OF THE 3RD QUARTER 2017-2018
*On a like-for-like basis
May, 2018INVESTORS PRESENTATION24
REFERENCES
SALES AT THE END OF THE 3RD QUARTER 2017-2018
Accounting referenceIFRS on March 31, 2018
ScopeConsolidation scope: minority stake in Prime Seed Co (Zimbabwe. Vegetable Seeds)
Activity scope: withdrawal by the Business Unit VILMORIN-MIKADO (Vegetable Seeds) from the distribution
of agricultural supplies in Japan
Rates of the main currencies on March 31, 2018 (and March 31, 2017)
average close
2017 2018 2017 2018
$ 1.09 1.19 1.07 1.23
¥ 118 132 120 131
£ 0.86 0.89 0.86 0.87
TRY 3.60 4.43 3.89 4.90
ILS 4.12 4.19 3.89 4.33
BRL 3.51 3.84 3.38 4.09
INR 73 77 69 80
MXN 21.31 22.10 20.02 22.52
UAH 28 32 29 33
RUB 68 69 60 71
May, 2018INVESTORS PRESENTATION25
CONSOLIDATED SALES*
In M€
SALES AT THE END OF THE 3RD QUARTER 2017-2018
AT THE END OF THE THIRD QUARTERTHIRD QUARTER
* Revenue from ordinary activities
* of which:
Vegetable Seeds: 191
Field Seeds: 314
1 070
988
-38
-18
-26
mar.-17 Impactdevises
Fournituresagricoles
Activité mar.-18
-7.7%
-2.6%
567
528
-22
-8
-9
mar.-17 Impactdevises
Fournituresagricoles
Activité mar.-18
-6.9%
-1.7%
*
Currency
impact
Agricultural
supplies
ActivityMarch 17 March 18
Currency
impact
Agricultural
supplies
ActivityMarch 17 March 18
May, 2018INVESTORS PRESENTATION26
SALES* OF VEGETABLE SEEDS
In M€
SALES AT THE END OF THE 3RD QUARTER 2017-2018
* Revenue from ordinary activities
THIRD QUARTER
AT THE END OF THE THIRD QUARTER
499
439
-25
-18
-17
mar.-17 Impactdevises
Fournituresagricoles
Activité mar.-18
-11.9%
-3.5%
212191
-13-8
-
mar.-17 Impactdevises
Fournituresagricoles
Activité mar.-18
-10.0%
-0.1%
0
Currency
impactAgricultural
supplies
ActivityMarch 17 March 18 Currency
impact
Agricultural
supplies
ActivityMarch 17 March 18
May, 2018INVESTORS PRESENTATION27
SALES OF VEGETABLE SEEDS
SALES AT THE END OF THE 3RD QUARTER 2017-2018
Stability of the business over the quarter, in a more contrasted market
context
Business still affected by globally high inventory levels at distributors
(North America)
Sales also affected by:
- problems concerning the management of seed procurement in
certain countries
- the temporary contraction of several markets
Dynamic performances in several high potential regions: Asia, Middle
East and South America
Continuation of the programmed withdrawal by the Business Unit
VILMORIN-MIKADO from the distribution of agricultural supplies in
Japan
A more difficult fiscal year for the Vegetable Seeds division, which in
recent years, has posted strong business growth; these difficulties are
of a temporary nature
Europe
Africa/Middle East
Asia/Oceania
Americas
ANALYSIS OF SALES*
OF VEGETABLE SEEDS PER GEOGRAPHICAL ZONE
A performance which in no way calls into question the market
fundamentals nor the global growth trend of the Vegetable
Seeds division
* Sales of products
35%
32%
16%
17%
May, 2018INVESTORS 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)
SALES AT THE END OF THE 3RD QUARTER 2017-2018
In M€
532 512
-13
-7
mar.-17 Impactdevises
Activité mar.-18
-3.6%
-1.3%
330 314
-9-7
mar.-17 Impactdevises
Activité mar.-18
-4.8%
-2.1%
Currency
impact
ActivityMarch 17 March 18Currency
impact
ActivityMarch 17 March 18
May, 2018INVESTORS PRESENTATION29
TRENDS FOR THE FIELD SEEDS MARKET
SALES AT THE END OF THE 3RD QUARTER 2017-2018
A difficult market context for field seeds
Corn
Sunflower
United States
↘ Acreage (-2%)
Europe 28
↘ Acreage (-3%)
Greater Europe
↘ Acreage (-4%)
Brazil
↘ Safra acreage (-20%)
↘ Safrinha acreage (-5%)
Europe 28
↘ Acreage (-6%)
Greater Europe
↗ Acreage (+1%)
Low level of prices for agricultural raw materials
Anticipated reduction of corn acreage on the main markets
Sources: USDA, APPS, CONAB, internal. March 2018
May, 2018INVESTORS PRESENTATION30
SALES OF FIELD SEEDS
SALES AT THE END OF THE 3RD QUARTER 2017-2018
442
207
71
In M€
Corn and sunflower. Europe Business slightly down in a globally sluggish market environment
Spring campaigns marked by delays in sowing because of the difficult weather
conditions (Western Europe)
Contrasting situations depending on crops and countries:Stability in orders for corn seeds, in spite of an expected drop in acreage
Good growth of sunflower seed sales (volume and value)
Very good performances in Ukraine, Russia and Turkey, whereas the market in
Western Europe remains bearish
Strengthening of Vilmorin & Cie’s competitive positions (particularly in corn)
Corn. South AmericaStrong drop in business over the 3rd quarter (safrinha corn), in a very difficult market
context this year: significant reduction in acreage
competitive pressure on pricing policies
decision by Brazilian farmers to opt for varieties with lower added value
Associated companiesNorth America (AgReliant): Expected drop in marketed corn seed volumes in line with
anticipated cultivated acreage
Africa (Seed Co): Strong increase in business
Europe
North
America
(AgReliant)
Other zones
ANALYSIS
PER GEOGRAPHICAL ZONE (evolution on a like-for-like basis,
before application of IFRS 11)
(-0.1%)
(-3%)
(-8.5%)
TOTAL SALES
(including AgReliant): 720 M€
Business downturn in line with market trends
May, 2018INVESTORS PRESENTATION31
CONSOLIDATED SALES* PER GEOGRAPHICAL ZONE
SALES AT THE END OF THE 3RD QUARTER 2017-2018
Americas
192 M€. -7.0%**
Africa/Middle East
100 M€. +0.2% **
Europe
578 M€. -2.4%**
Asia/Oceania
81 M€. -0.1%**
60 %
10 %
61%
20%
10%
9%Africa/
Middle East
Americas
Asia/Oceania
Europe
* Sales of products
** On a like-for-like basis compared with 2016-2017
May, 2018INVESTORS PRESENTATION32
CONSOLIDATED SALES* PER QUARTER
SALES AT THE END OF THE 3RD QUARTER 2017-2018
* Revenue from ordinary activities
En M€
8 8 6 625 23 12
22 2137 33
25 1611
63 7079 74
305298
83
138 109
149139
212
191
237
Q1 16-17 Q1 17-18 Q2 16-17 Q2 17-18 Q3 16-17 Q3 17-18 Q4 16-17 Q4 17-18
208
In M€
232
271
Vegetable Seeds
Field Seeds Europe
Field Seeds other zones
Garden Products and Holdings
SALES* PER QUARTER
344
Dis
clo
su
re o
n A
ug
ust
6,
20
18
252
567
528
May, 2018INVESTORS PRESENTATION33
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018
May, 2018INVESTORS PRESENTATION34
VEGETABLE SEEDS
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018
Outlook for the end of the fiscal year:
Objective for Vegetable Seeds sales readjusted lower
Challenge for the end of the fiscal year:
Confirmation of strong growth of the Vegetable Seeds activity
over the 4th quarter, with a high reference base
Objective
Sales = +2%**
** On a like-for-like basis
12/13
Sales*:
+3.5%
FLASHBACK OF THE EVOLUTION OVER THE 4TH QUARTER FOR VEGETABLE SEEDS
15/16
Sales*:
+11.2%
16/17
Sales*:
+8.8%
14/15
Sales*:
+15.8%
13/14
Sales*:
-0.5%
*With current data
May, 2018INVESTORS PRESENTATION35
FIELD SEEDS
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018
Definitive evolution of corn and sunflower acreage
Resistance to the persistent pressure on pricing policies
Final impact of the exchange rates between certain currencies
Challenges for the end of the fiscal year:
Outlook for the end of the fiscal year:
Objective for Field Seeds sales readjusted downward
Objective
Sales ≈ 0%*
* On a like-for-like basis
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018
May, 2018INVESTORS PRESENTATION36
DOWNWARD READJUSTMENT OF OBJECTIVES FOR THE YEAR
OBJECTIVE PRESENTED IN FEBRUARY 2018* (following disclosure of the results for the first semester)
Sales
of which:
Vegetable Seeds
Field Seeds
+4%
+4%
+4%
* On a like-for-like basis
2017-2018 sales objective:
Achieve a slight increase in consolidated sales, on a like-for-like basis, compared with fiscal year
2016-2017, taking into account the full impact of the withdrawal from the distribution of
agricultural supplies in Japan
OBJECTIVE READJUSTED
AT THE END OF THE THIRD QUARTER*
Sales
of which:
Vegetable Seeds
Field Seeds
≥ 0%
+2%
≈ 0%
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018
May, 2018INVESTORS PRESENTATION37
OBJECTIVE PRESENTED IN FEBRUARY 2018 (following disclosure of the results for the first semester)
Current operating
margin
At the same level as in
2016-2017(i.e. ≈ 9.2%),
including a research investment
of ≈ 255 M€
2017-2018 objective for the current operating margin rate:
OBJECTIVE READJUSTED AT THE END OF
THE THIRD QUARTER
Current operating
margin
Down by at least 1% point
compared with 2016-2017,
including a research investment
of ≈ 255 M€
Taking into account the measures adopted several months ago in
all the Business Units,
with the aim of tightening up on industrial investments
and operating charges
Aim for a contribution from associated companies at least equivalent to that of 2016-2017Mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds).
While pursuing the deployment of strategic orientations, with a long-term vision, on a seed market that
remains structurally promising
DOWNWARD READJUSTMENT OF OBJECTIVES FOR THE YEAR
OUTLOOK FOR THE END OF FISCAL YEAR 2017-2018
May, 2018INVESTORS PRESENTATION38
VILMORIN & CIEON THE STOCK EXCHANGE
May, 2018INVESTORS PRESENTATION39
(Source: Euronext.com)
€57.60SHARE PRICE
ON MAY 2ND, 2018
VILMORIN & CIE ON THE STOCK EXCHANGE
EVOLUTION OF THE SHARE PRICE
Vilmorin & Cie :
Vilmorin & Cie
CAC 40
MARKET CAPITALIZATION
ON MAY 2ND, 2018
€1.2 BN.
- 11.3% 1 year
May, 2018INVESTORS PRESENTATION40
VILMORIN & CIE ON THE STOCK EXCHANGE
DIVIDENDS (1)
(1) Data restated for the allotment of free shares of January 2013 and January 2015.
Pay-out 35.3% 31.5% 37.2% 44.8% 38.6%
3.87
4.77
4.04
3.50
2.85
4.17
1.36 1.50 1.50 1.571.10
1.60
2012 2013 2014 2015 2016 2017
Profit (group share) per share Dividend
38.4%
May, 2018INVESTORS PRESENTATION41
SCHEDULE AND CONTACTS
May, 2018INVESTORS PRESENTATION42
MONDAY AUGUST 6, 2018 AFTER TRADING
Disclosure of the sales at the end of fiscal year 2017-2018
WEDNESDAY OCTOBER 17, 2018 AFTER TRADING
Disclosure of the annual results for fiscal year 2017-2018
SCHEDULE
Dates provided as an indication only, and liable to be changed
May, 2018INVESTORS PRESENTATION43
FOR ANY FURTHER INFORMATION:
CONTACTS
Valérie MONSERAT
Head of Financial Communication and
Investor Relations
valerie.monserat@vilmorincie.com
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
Vincent SUPIOT
Chief Financial Officer
vincent.supiot@vilmorincie.com
May, 2018INVESTORS PRESENTATION44
44
APPENDICES
May, 2018INVESTORS PRESENTATION45
APPENDICES
KEY FINANCIAL DATA
FOR THE 1ST SEMESTER 2017-2018
May, 2018INVESTORS PRESENTATION46
CONSOLIDATED SALES*
RESULTS FOR THE FIRST SEMESTER 2017-2018
In M€
* Revenue from ordinary activities
1ST SEMESTER
503
460
-16
-10 -17
Dec. 2016 Currencyimpact
Agriculturalsupplies
Activity Dec. 2017
-8.5%
-3.5%
May, 2018INVESTORS PRESENTATION47
CONSOLIDATED SALES ON DECEMBER 31, 2017
RESULTS FOR THE FIRST SEMESTER 2017-2018
SALES
PER GEOGRAPHICAL ZONE*
54%43%
3%
SALES
PER DIVISION*
Vegetable
SeedsField
Seeds
Garden Products
and Holdings
49%
26%
13%
12%
Europe
Africa/ Middle East
Asia / Oceania
Americas
* Sales of products
54%
23%
12%
5%6%
Vegetable seeds
Cereals (corn, wheat/barley)
Oil and protein rape & sunflower
Other field seeds
Other products
SALES
PER PRODUCT*
* Revenue from ordinary activities
* Sales of products
May, 2018INVESTORS PRESENTATION48
SALES* PER ACTIVITY
* Revenue from ordinary activities
In M€
RESULTS FOR THE FIRST SEMESTER 2017-2018
SALES OF
VEGETABLE SEEDS
-13.3%
-6.0%
* Revenue from ordinary activities
after application of IFRS 11 (i.e. excluding AgReliant)
SALES OF
FIELD SEEDS
287
249
-12
-10
-16
dec-16 Currencyimpact
Agriculturalsupplies
Activity dec-17
202198
-4
dec-16 Currencyimpact
Activity dec-17
0
-1.8%
0%
May, 2018INVESTORS PRESENTATION49
INCOME STATEMENT
RESULTS FOR THE FIRST SEMESTER 2017-2018
In M€ 12.31.2016 12.31.2017 Variation*
Sales 503.0 460.1 -8.5%
Commercial margin 246.0 236.8 -9.2 M€
Commercial margin rate 48.9% 51.5% +2.6 pts
Operating income -18.5 -42.4 -23.9 M€
Operating margin rate -3.7% -9.2% -5.5 pts
Financial income -6.8 -16.7 -9.9 M€
Income from associated companies -24.9 -26.6 -1.7 M€
Income taxes 10.5 47.6 +37.1 M€
Net income -39.7 -38.1 -(1.6) M€
Group share of net income -38.8 -37.3 -(1.5) M€
* With current data
May, 2018INVESTORS PRESENTATION50
INCOME STATEMENT – OPERATING CHARGES
RESULTS FOR THE FIRST SEMESTER 2017-2018
* With current data CG = capital gains
In M€ 12.31.2016 12.31.2017 Variation*
Marketing and sales -91.8 -92.6 +0.9%
Research and development -93.6 -97.1 +3.7%
Administration and other charges -79.6 -89.8 +12.8%
Impairments 0.0 0.1 +0.1 M€
Reorganization -0.8 0.1 +0.9 M€
Disposal of assets 1.3 (CG) 0.1 (CG) -1.2 M€
Net operating charges -264.5 -279.2 +(14.7) M€
May, 2018INVESTORS PRESENTATION51
KEY FIGURES PER ACTIVITY (CONTRIBUTION TO CONSOLIDATED RESULTS)
RESULTS FOR THE FIRST SEMESTER 2017-2018
Sales* Operating income Net income
In M€ 12.31.2016 12.31.2017 12.31.2016 12.31.2017 12.31.2016 12.31.2017
Vegetable Seeds 286.9 248.7 12.8 1.0 7.9 10.7
Field Seeds 201.6 197.9 -20.7 -29.9 -45.3 -40.1
Garden Products 14.1 13.1 -7.1 -7.7 -7.7 -7.7
Holdings 0.4 0.4 -3.5 -5.8 5.4 -1.0
Consolidated 503.0 460.1 -18.5 -42.4 -39.7 -38.1
* Revenue from ordinary activities
May, 2018INVESTORS PRESENTATION52
BALANCE SHEET STRUCTURE
In M€
RESULTS FOR THE FIRST SEMESTER 2017-2018
Total balance sheet 2,354 2,302
including cash and bank 225 226
989 986
58 4786 76
1 222 1 193
31.12.2016 31.12.2017
Equity
Provision
Net deferred taxes
Net indebtedness
665 671
1 689 1 631
Net fixed assets
Net working capitalneeds
ASSETS
LIABILITIES
May, 2018INVESTORS PRESENTATION53
APPENDICES
KEY FINANCIAL DATA
FOR FISCAL YEAR 2016-2017
May, 2018INVESTORS PRESENTATION54
INCOME STATEMENT
In M€ 2015-2016 2016-2017 Variation
Sales 1 325.1 1 414.0 +6.7%
Sales margin 632.2 687.0 +€54.8 M
Sales margin rate 47.7% 48.6% +0.9 pt
Operating income 100.3 118.3 +€18.0 M
Operating margin rate 7.6% 8.4% +0.8 pt
Current operating margin rate* 8.4% 9.2% +0.8 pt
Income from associated companies 30.8 33.9 +€3.1 M
Financial income -36.5 -24.5 -(€12.0) M
Income taxes -33.8 -37.6 +(€3.8) M
Net income 60.8 90.1 +€29.3 M
Net income Group share 59.3 86.9 +€27.6 M
RESULTS FOR FISCAL YEAR 2016-2017
* The current operating margin is defined as the accounting operating margin restated for any impairment and
reorganization costs
May, 2018INVESTORS PRESENTATION55
KEY FIGURES FOR EACH ACTIVITY’S CONTRIBUTION TO CONSOLIDATED SALES
* Revenue from ordinary activities
Sales* Operating income Net income
In M€ 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017
Vegetable Seeds 688.7 735.8 109.3 125.8 71.6 84.9
Field Seeds 581.7 626.0 10.6 17.2 17.3 31.9
Garden Products 53.6 51.2 -4.6 -6.7 -4.6 -6.9
Holdings 1.1 1.0 -15.0 -18.0 -23.5 -19.8
Consolidated 1 325.1 1 414.0 100.3 118.3 60.8 90.1
RESULTS FOR FISCAL YEAR 2016-2017
May, 2018INVESTORS PRESENTATION56
FREE CASH-FLOW
In M€ 2015-2016 2016-2017
Net indebtedness at the beginning of the FY 660 742
EBITDA* 278 316
Variation of working capital needs 20 -43
Other operating items -28 -12
Net industrial investments -46 -38
Activated development costs -157 -165
Operating cash-flow 68 57
Net financial investments -116 -5
Capital and other equity contributions -1 -
Dividends -10 -4
Net financial charges -23 -23
Free cash-flow -83 25
Other restatements (IFRS/Currency, etc.) 1 3
Net indebtedness at the end of the FY 742 714
RESULTS FOR FISCAL YEAR 2016-2017
* The EBITDA is defined as the operating income to which are added any provisions for depreciation, amortization and impairment.
May, 2018INVESTORS PRESENTATION57
BALANCE SHEET STRUCTURE
Total balance sheet 2 159 2 179
of which cash 207 256
In M€
Gearing 55%
Leverage 2.3
742 714
64 7689 80
1 264 1 309
June 2016 June 2017
Equity
Provisions
Net deferred taxes
Net indebtedness
468 492
1 691 1 687
Net fixed assets
Net working capitalneeds
RESULTS FOR FISCAL YEAR 2016-2017
May, 2018INVESTORS PRESENTATION58
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