INVESTORS PRESENTATION JANUARY, 2018 1 INVESTORS PRESENTATION January, 2018
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 on reasonable assumptions but cannot and does not give any assurance that the Group's future performance will be consistent with those statements. Actual results could differ from those currently anticipated in such statements due to a certain number of inherent risks and uncertainties, most of which are beyond Vilmorin & Cie SA's control, such as those described in the documents filed or to be filed by Vilmorin & Cie SA with the French securities regulator (Autorité des marchés financiers) and made available for downloading from the Company's website: www.vilmorincie.com INVESTORS PRESENTATION 2 January, 2018
AGENDA VILMORIN & CIE AT A GLANCE s. 04 VILMORIN & CIE GROWTH STRATEGY s. 11 SALES FOR THE 1 st QUARTER 2017-2018 s. 22 OUTLOOK FOR 2017-2018 AND MID TERM AMBITIONS s. 30 VILMORIN & CIE ON THE STOCK EXCHANGE s. 34 SCHEDULE AND CONTACTS s. 37 APPENDICES s. 40 INVESTORS PRESENTATION 3 January, 2018
VILMORIN & CIE AT A GLANCE 4 4 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE AT A GLANCE VILMORIN & CIE, 4 TH LARGEST SEEDS COMPANY IN THE WORLD Fourth largest seeds company in the world with leading positions on its core activities N ° 1 N ° 2 N ° 3 N ° 4 in Europe worldwide in North in Europe for straw for vegetable America for for corn cereals (1) seeds corn seeds seeds 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 (1) Wheat and barley 5 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE AT A GLANCE A FULL CONTROL OF ALL STAGES IN SEEDS BUSINESS ANALYZING NEEDS A 7 TO 10 YEARS CYCLE COLLECTING CREATING GENETIC NEW SEEDS RESOURCES PRODUCING AROUND 300 VARIETIES SEEDS LAUNCHED PER YEAR DISTRIBUTING AND SELLING SEEDS 6 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE AT A GLANCE Eureka Seed / USA Link Seed / South Africa Canterra Seeds / Canada(*) A SOLID TRACK RECORD Seed Co / Africa (*) Bisco Bio Sciences / India BSF/Genesis/Trigen/ Hengji Limagrain Seeds / Seed Asia / Thailand Trio Research / USA China (JV) In M€ Shamrock / USA and Century Seeds / India Su Tarim / Turkey Golden Acres / USA Mexico Brasmilho Sementes Tropdicorp/Vietnam Meza Maize / USA Genica Research / USA Guerra / Brazil Integration of European 2000 and US field seeds 140 1 715 1800 Field seeds acquisition 1 627 1 531 1 500 1600 120 1 472 1 414 1 338 1 325 1400 1 269 100 1 192 99.4 1200 1 064 1 002 29.3 86.9 80 939 84.1 1000 897 80.6 Vegetable seeds acquisition 72.9 800 60 61.7 59.3 494 54.8 54.1 53.0 600 40 44.3 43.8 400 20 200 0 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 7 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE AT A GLANCE A BUSINESS ORGANIZATION CLOSE TO THE MARKETS : KEY FOR SUCCESS VEGETABLE SEEDS FIELD SEEDS GARDEN PRODUCTS VEGETABLE GROWERS FARMERS MARKET GARDENERS 3 BUSINESS UNITS 6 BUSINESS UNITS 1 BUSINESS UNIT Key leading brands: Key leading brands: Key leading brand: 8 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE AT A GLANCE A LONG TERM REFERENCE SHAREHOLDER Groupe Limagrain: BREAKDOWN OF THE CAPITAL ON JUNE 30 th 2017 Individual shareholders 6.2% Investors An international agricultural cooperative group, founded and 20.0% managed by French farmers (of which ~50% Groupe internationally Limagrain* based: USA, UK, Singapore, 73.8% Belgium…) A seed group involved in the development of integrated agricultural chains * of which BPI France as a strategic shareholder of Limagrain Vegetable seeds and field seeds TOTAL NUMBER OF SHARES: Cereal products 20 833 902 (cereal ingredients and bakery products) Sources: Euroclear and Euronext 9 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE AT A GLANCE 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 Moving agriculture forward to meet food challenges MISSION To provide farmers throughout the world with STRATEGY sustainable solutions to improve their farms' profitability Nearly 2,000 farmer members KEY FIGURES 2.6 billion euros in sales More than 10,000 employees * Figures for the overall scope of activity worldwide, taking into account data from the companies AgReliant, AGT, Genective, Seed Co and Soltis . 10 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 11 11 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 1/ PROMISING WORLD SEEDS MARKETS WORLD MARKET POWERFUL GROWTH FACTORS: FOR COMMERCIAL SEEDS (2016) 14,1 % Increase in seeds demand Vegetable seeds (Conventional seeds) 55,3 % Growth in the world population (10 bn in 2050) Field Seeds – GM seeds Improvement in the standards of living 30,6 % Field Seeds – Conventional seeds Increase in the use of commercial seeds MARKET VALUE 2016: Ever greater use of genetically modified $36.9 BN. ( “ GM ” ) seeds worldwide GLOBAL CAGR: +1,4% / YEAR (CAGR between 2011 and 2016) Sources: Phillips McDougall 2017 and ISAAA 2017 12 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2016 WORLD MARKET ACREAGE 185.1 million hectares (around 10% of arable land), +3% / 2015, grown by 18 million farmers in 26 countries million ha GMO : 185 ACREAGE PER COUNTRY 190 170 150 130 110 90 Others 70 China India 50 Canada 30 Argentina Brazil 10 USA -10 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 WORLD MARKET VALUE More than $20 billion in 2016 (i.e. 55 % of the world market for seeds), +3% / 2015 Sources: ISAAA 2017. Phillips McDougall 2017 13 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 1/ MARKET FOR SEEDS: HIGH BARRIERS TO ENTRY 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 Monsanto 10,011 Monsanto Monsanto Dow Dupont 7,496 - ≈ 260 M€ acquired by Citic 27% Others Others Syngenta / Chemchina - ≈ 160 M€ acquired by DLF (sugar beet) 2,437 34% Bayer / Monsanto Vilmorin & Cie 1,663 1,394 KWS - 830 M€ acquired by BASF 1,358 Bayer DLF + ≈ 160 M€ were acquired from Syngenta (sugar beet) 479 Bayer 4% Rijk Zwaan 20% 420 Dow Dupont 4% KWS LPHT + ≈ 260 M€ with Citic 304 5% 6% Sakata 285 0 2 000 4 000 6 000 8 000 10 000 12 000 Syngenta - ChemChina Vilmorin & Cie Seeds companies – Sales in millions of euros – 2016 Vegetable seeds (Monsanto and Vilmorin & Cie: data 2016-2017) Field seeds (Vilmorin & Cie: sales excluding Garden products and without IFRS 11 impact) Sources: Company publications and internal. 2016 (Bayer : estimations of the repartition between Field seeds and Vegetable seeds) 14 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 2/ A STRATEGY OF WINNING MARKET SHARES 3 strategic foundations INNOVATION TARGETED POLICY OF INTERNATIONALIZATION EXTERNAL GROWTH 3 strategic priorities Vegetable seeds: reinforce world leadership Corn seeds: become a global actor Wheat seeds : become the world reference 15 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 3 / VEGETABLE SEEDS. DIVISION PROFILE KEY FIGURES 2016-2017 N ° 2 - A very strong competitive position addressing COUNTRIES M€ 736 32 WITH worldwide vegetable growers and food processors SALES LOCATIONS - An extremely diversified product line-up with in the OPERATING 17.1 % more than 30 species (tomato, carrot, melon, MARGIN world pepper, bean, etc.) Current operating margin : 17.3% SALES OF VEGETABLE SEEDS SALES OF VEGETABLE SEEDS PER CROP. 2016-2017 PER GEOGRAPHICAL AREA. 2016-2017 Africa / Middle East 1 16% Tomato Europe 34% Others Asia / Oceania 3 Sweet and hot 17% pepper 1 Carrot Americas 1 Melon Onion 33% Bean 2 2 Squash 1,2,3: worldwide competitive positions 16 INVESTORS PRESENTATION January, 2018
VILMORIN & CIE GROWTH STRATEGY 3 / VEGETABLE SEEDS. 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) Recent acquisitions: CAMPBELLS’ SEEDS CENTURY SEEDS GENICA RESEARCH TROPDICORP October 2012 September 2012 February 2016 March 2015 Bitter gourd, pumpkin, 10 local crops Tomato and pepper Sweet and hot peppers, wax gourd India United States cucumber, summer squash Vietnam Sales: 4 M€ Sales: more than 5 M$ United States Sales: 6 M$ Sales: more than 25 M$ 17 INVESTORS PRESENTATION January, 2018
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