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JULY 2020INVESTORS PRESENTATION1
JULY 2020
INVESTORS PRESENTATION
JULY 2020INVESTORS PRESENTATION2
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
DISCLAIMER
JULY 2020INVESTORS PRESENTATION3
VILMORIN & CIE AT A GLANCE s. 04
VILMORIN & CIE GROWTH STRATEGY s. 11
CSR PROGRAM s. 22
SALES AT THE END OF THE 3RD QUARTER 2019-2020 s. 26
GLOBAL HEALTH CRISIS / UPDATE ON THE SITUATION s. 37
OUTLOOK FOR 2019-2020 s. 40
VILMORIN & CIE ON THE STOCK EXCHANGE s. 44
SCHEDULE AND CONTACTS s. 47
GLOSSARY s. 50
APPENDICES s. 53
AGENDA
JULY 2020INVESTORS PRESENTATION4
4
VILMORIN & CIE AT A GLANCE
JULY 2020INVESTORS 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, both an agricultural cooperative owned by French farmers and an international seed group
VILMORIN & CIE AT A GLANCE
N°1worldwide
for vegetable seeds
N°6worldwide
for field seeds
JULY 2020INVESTORS 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
255 VARIETIES LAUNCHED IN 2018-2019
A 7 TO 10 YEARS CYCLE
JULY 2020INVESTORS 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 / USA
Su Tarim / Turkey
Meza Maize / USA
61.7
AdvanSeed / Denmark
53 54,1
80,6
99,4
84,1
72,9
59,3
86,9
76,9 77,91002
1064
11921338
1472 1500 1531
1627
1715
1606 1634
12691325
14141346
1391
0
20
40
60
80
100
120
140
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Sursem and Geneze /
South America
29.3
61,7
(*) Share of profit of associates.Acquisitions examples are not exhaustive.
Net income (Groupe share)SalesSales (IFRS 11)Capital gains from sale of minority stakesin China
JULY 2020INVESTORS 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 brands:
JULY 2020INVESTORS PRESENTATION9
A LONG TERM REFERENCE SHAREHOLDER
Groupe Limagrain:
An agricultural cooperative owned by French farmers
An international 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 31, 2019
5.43%
20.31%
74.26%
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
Institutional investors
(of which ~50%
internationally
based: USA, UK,
Singapore,
Germany, etc.)
JULY 2020INVESTORS PRESENTATION10
Cooperating for the progress of agriculture everywhere, for everyone
A LONG TERM REFERENCE SHAREHOLDER
Groupe Limagrain, a reference shareholder guaranteeing:
Stable corporate governance
Long term strategy
A perfect knowledge of agriculture, customers and their needs
LIMAGRAIN IN BRIEF
MISSION
* Strategic partnerships: AgReliant, AGT, Genective, Seed Co, Soltis, Canterra Seeds, Hengji
Limagrain Seeds, Carthage Génétique and Prime Seed Co. 2018-2019.
VILMORIN & CIE AT A GLANCE
STRATEGY
KEY FIGURES
Serving all types of agriculture, taking into account theirdiversity
Helping to meet the food needs in terms of nutrition, health and consumption patterns
Nearly 1,500 farmer members1,883 million euros in sales + 678 million euros in sales from strategic partnerships*More than 10,000 employees
JULY 2020INVESTORS PRESENTATION11
11
VILMORIN & CIE GROWTH STRATEGY
JULY 2020INVESTORS 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
Adoption of genetically modified
(“GM”) seeds worldwide
Vegetable seeds
(Conventional seeds)
WORLD MARKET
FOR COMMERCIAL SEEDS (2018)
(CAGR between 2013 and 2018)
Field seeds –
Conventional seeds
Field seeds –
GM seeds
14.3%
30.2%
55.5%
MARKET VALUE 2018:
$39.4 BN. GLOBAL CAGR: +1% / YEAR
Source: AgbioInvestor 2018
JULY 2020INVESTORS PRESENTATION13
1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2018
VILMORIN & CIE GROWTH STRATEGY
WORLD MARKET ACREAGE
191.7 million hectares (more than 10% of arable land), +1% / 2017,
grown by 17 million farmers in 26 countries
Sources: ISAAA 2019. AgbioInvestor 2018
WORLD MARKET VALUE
Nearly $22 billion in 2018 (i.e. 55.5% of the world market for seeds), +2% / 2017
million ha
191,7
GMO :
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 2018
Others
China
Canada
India
Argentina
Brazil
USA
JULY 2020INVESTORS PRESENTATION14
1/ MARKET FOR SEEDS: HIGH BARRIERS TO ENTRY
VILMORIN & CIE GROWTH STRATEGY
A concentrated competitive environment WORLDWIDE COMPETITIVE ENVIRONMENT FOR SEEDS
High barriers to entry:Width and depth of the genetic resources
R&D investment(conventional breeding and biotechnologies)
International coverage
In M€.
Sources: corporate disclosures and internal estimates for sales in 2019.
LPHT sales for 2018; Vilmorin & Cie and KWS sales before IFRS11.
*Bayer: soybean, corn and vegetable seed sales only– other Field Seeds sales are estimated between 0.8M€ and 1B€.
No impact on the ranking.
Exchange rate: EUR 1 = USD 1,14
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Sakata (JPN)
LPHT (CHN)
Rijk Zwaan (NLD)
DLF (DNK)
KWS (DEU)
BASF (DEU)
Vilmorin & Cie (FRA)
Syngenta (CHN)
Corteva Agriscience (USA)
Bayer (DEU)
Field Seeds Vegetable Seeds
JULY 2020INVESTORS PRESENTATION15
2/ A STRATEGY OF WINNING MARKET SHARES
VILMORIN & CIE GROWTH STRATEGY
3 STRATEGIC FOUNDATIONS
OBJECTIVEReinforce world
leadership
OBJECTIVEBecome a global
player
OBJECTIVEUltimately
become the
world reference
2Strong
internationalization
of the activities
1Strong, continuous
investment in
research
3Capacity to combine
targeted acquisitions
and partnerships
3 STRATEGIC PRIORITIES
Corn seeds
Vegetable seeds
Wheat seeds
JULY 2020INVESTORS PRESENTATION16
37%
32%
15%
16%
3/ VEGETABLE SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
Tomato (1)
Carrot (1)
Sweet and hot pepper (3)
Melon (1)Squash (1)
Bean (2)
Onion
Others
SALES OF VEGETABLE SEEDSPER CROP. 2018-2019
SALES OF VEGETABLE SEEDSPER GEOGRAPHICAL AREA. 2018-2019
Europa
Americas
Africa/Middle East
Asia/Oceania
KEY FIGURES 2018-2019
36687.5
14.9%
COUNTRIES
WITH
LOCATIONS
M€
SALES
OPERATING
MARGIN
Current operating margin: 14.9%
(1),(2),(3): worldwide competitive positions
- 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.)
N°1worldwidefor vegetable
seeds
JULY 2020INVESTORS 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€
Examples of 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$
JULY 2020INVESTORS PRESENTATION18
59%36%
3% 2%
4 / FIELD SEEDS. DIVISION PROFILE
VILMORIN & CIE GROWTH STRATEGY
SALES OF FIELD SEEDS*PER GEOGRAPHICAL AREA. 2018-2019
EuropeAmericas
Asia/Oceania
KEY FIGURES 2018-2019
35
649.9
4.2%
COUNTRIES
WITH
LOCATIONS*
M€
SALES
OPERATING
MARGIN
Current operating margin: 5.1%
(892.6 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
10%
6%
5%
16%
63%
SALES OF FIELD SEEDS*PER CROP. 2018-2019
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
- 4 strategic crops: corn, wheat, sunflower and
rapeseed - 2 of which are worldwide: corn and wheat
- And regional crops adapted to each region: barley,
soybean, millet, rice, and pulses
JULY 2020INVESTORS PRESENTATION19
4/ CORN SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
CORN SEEDS: BECOME A GLOBAL PLAYERon the largest world seed market in terms of value (nearly $15 bn in 2018*)
SEED COMinority stake. 2014
#1 African seeds company
Sales: 140 M$ in 2018-2019
6 factories & 9 research stations in south
east Africa
Hengji Limagrain SeedsJV. September 2015
Corn
China
Production and
distribution
SURSEM and GENEZEDecember 2018
Corn
Argentina and Brazil
Sales: more than 40 M$ in
2017
Technological strategic partnership between Vilmorin & Cie and KWS
*Source: AgbioInvestor 2018
Reinforce leading positions in Europe and North America
Develop activities in South America, Asia and Africa
GM corn traits licensing agreements with Syngenta (October 2015)
Develop a proprietary portfolio of GM seeds
Recent acquisitions:
JULY 2020INVESTORS PRESENTATION20
4 / WHEAT SEEDS. STRATEGY
VILMORIN & CIE GROWTH STRATEGY
WHEAT SEEDS: ULTIMATELY BECOME THE WORLD REFERENCE
*Sources: AgbioInvestor 2018, USDA.
Consolidate a position of leader in Europe and Australia and become the world reference of the first worldwide crop in terms of cultivated surface areas (215 million hectares in 2018*)
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
AUSTRALIA(Australian Grain Technologies)
NORTH AMERICA
United States
Canada
OTHER ZONES
South America
Asia
Africa
JULY 2020INVESTORS PRESENTATION21
5/ R&D: INNOVATE TO INSURE TOMORROW’S GROWTH
VILMORIN & CIE GROWTH STRATEGY
2018-2019
*of which €242 million research investments without integrating partnerships
€300 MILLION
RESEARCH INVESTMENT
INTEGRATING PARTNERSHIPS*
14%INVESTED IN BIOTECHNOLOGIES
Maintain regular investment in research (breeding and biotechnologies) and broaden the partnerships
Sales of seeds
AgReliant’ sales of seeds (50%)
Investment in research
Investment in research/Sales of seeds (incl. 50% AgReliant)
1 087 1 119 1 1801 274 1 234 1 280
242261
302301
260 243
190 211 225 240 241 241
17,5%18,9% 19,1% 18,8%
19,6%18,9%
14,3%15,3% 15,2% 15,2%
16,2% 15,9%
Réel
1314
Réel
1415
Réel
1516
Réel
1617
Réel
17-18
Réel
18-19
en M€
CA semences marchés professionnels
CA semences AgReliant @50%
Dépenses de recherche
Effort de recherche (en % de CA IFRS 11)
Effort de recherche (en % de CA yc AgReliant)
2017-20182014-2015 2015-2016 2016-2017
1,4941,380 1,482 1,576
2018-2019
1,523
242
JULY 2020INVESTORS PRESENTATION22
CSR PROGRAM
22
JULY 2020INVESTORS PRESENTATION23
VILMORIN & CIE’S BUSINESS MODEL
CSR PROGRAM
JULY 2020INVESTORS PRESENTATION24
A CSR PROGRAM ANCHORED IN VILMORIN & CIE’s DNA
CSR PROGRAM
The foundations of the program:
- 3 founding values: progress, perseverance and cooperation
- The standard ISO 26000 and the 10 principles of United Nations Global Compact which the Group has signed
- Vilmorin & Cie’s specific development model:
A single core business of seed
Organization very close to its markets
A long-term vision
The CSR program is deployed around 3 priorities:
A program truly anchored in Vilmorin & Cie’s DNA,
with the challenges that Vilmorin & Cie was already meeting in its daily actions
Favoriser la coopérationContribute to lasting progress in
agriculture through seedAct responsibly Encourage cooperation
JULY 2020INVESTORS PRESENTATION25
A CSR PROGRAM ANCHORED IN VILMORIN & CIE’s DNA
Particularly through:
Innovative and responsible solutions originating in plant genetics,
for all forms of agriculture
E.g. LG Architect
Access to quality seeds for all farmers
E.g. partnership with Fair Planet
The preservation of the genetic diversity of the crops worked on
Every year Vilmorin & Cie devotes more than 20 M€
Encourage the professional fulfilment of employees
Act according to the ethical principles of the Code of Conduct
Limit the environmental impact of activities
Particularly through:
A societal commitment framework that aims to develop
sustainable, efficient integrated chains with local
stakeholders
Commitment in regions where Vilmorin & Cie has sites with
respect to local cultures and specificities, fostered by its
organization and management model
Almost 5,000 varieties
marketed worldwide
covering more than 60
plant species
255 new varieties
launched in 2018-2019
Among objectives with
regard to the environment:
reduce energy
consumption by 10% by
2022 (vs 2015-2016)
150 measures
devoted to societal actions
in 2018-2019
CSR PROGRAM
Contribute to lasting progress in
agriculture through seed
Act responsibly
Encourage cooperation
JULY 2020INVESTORS PRESENTATION26
SALES AT THE END OF THE 3RD QUARTER 2019-2020 (ON MARCH 31, 2020)
JULY 2020INVESTORS PRESENTATION27
KEY POINTS
SALES AT THE END OF THE 3RD QUARTER 2019-2020
A 3rd quarter 2019-2020 with growth of 5.5%*, marked by a good momentum,
both in Vegetable Seeds and Field Seeds
Vegetable Seeds: a strong increase in sales for the 3rd quarter: +8.6%*
Field Seeds: solid business growth over the 3rd quarter: +5%*
Consequently, sustained growth in aggregate sales (9 months): + 6%*
A 4th quarter with particularly decisive challenges, given the global health crisis
*With current data
JULY 2020INVESTORS PRESENTATION28
REFERENCES
SALES AT THE END OF THE 3RD QUARTER 2019-2020
Accounting referenceIFRS on March 31, 2020
ScopeAcquisition of the companies Sursem and Geneze (South America. Field Seeds) finalized in December 2018
Disposal of the company Van Den Berg (Netherlands. Garden Products) in June 2019
Rates of the main currencies on March 31, 2020 (and March 31, 2019)
average close
March 2019 March 2020 March 2019 March 2020
$ 1.15 1.11 1.12 1.10
¥ 128 120 124 119
£ 0.88 0.87 0.86 0.89
TRY 6.33 6.49 6.34 7.21
ILS 4.20 3.88 4.08 3.90
BRL 4.41 4.63 4.39 5.70
INR 81.32 79.01 77.72 82.90
ARS 48.74 70.65 48.74 70.65
MXN 22.17 21.66 21.69 26.18
UAH 31.57 27.52 30.71 30.31
RUB 75.71 72.03 72.86 85.95
JULY 2020INVESTORS PRESENTATION29
CONSOLIDATED SALES*
RÉSULTATS SEMESTRIELS 2019-2020SALES AT THE END OF THE 3RD QUARTER 2019-2020
In M€
THIRD QUARTER
*of which:
Vegetable Seeds: 216
Field Seeds: 333
+5.5%
+5.6%
AT THE END OF THE THIRD QUARTER
*Revenue from ordinary activities
+6.0%
+4.2%
0.6 *
JULY 2020INVESTORS PRESENTATION30
SALES OF* VEGETABLE SEEDS
In M€
SALES AT THE END OF THE 3RD QUARTER 2019-2020
*Revenue from ordinary activities
THIRD QUARTER
AT THE END OF THE THIRD QUARTER
+6.0%
+4.7%
+8.6%
+8.2%
JULY 2020INVESTORS PRESENTATION31
SALES OF VEGETABLE SEEDS
Quarter marked by quality performances of several strategic crops:
tomato, carrot and pepper
Significant increase of sales in Europe (especially in France), in North
America (United States and Mexico) and in Turkey
In Asia, the situation varied depending on the country: very good
performance in India and a drop in business in China (market under
pressure since January because of the pandemic); nevertheless an
initial recovery at the end of the quarter
Excellent dynamic for the month of March, probably including
anticipated orders for certain customers seeking to secure their
supplies, particularly in Europe and North America
Growing difficulties over the course of the quarter in terms of
international logistics flows, as a direct consequence of the pandemic
ANALYSIS OF SALES*
OF VEGETABLE SEEDS PER GEOGRAPHICAL ZONE
A strong increase in
sales over the 3rd quarter
36%
33%
14%
17%
Asia/Oceania
Europe
Americas
Africa/
Middle East
*Sales of products
SALES AT THE END OF THE 3RD QUARTER 2019-2020
JULY 2020INVESTORS PRESENTATION32
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 2019-2020
In M€
+6.8%
+4.2%
+5.0%
+5.3%
-0.1
JULY 2020INVESTORS PRESENTATION33
TRENDS FOR THE FIELD SEEDS MARKETS
SALES AT THE END OF THE 3RD QUARTER 2019-2020
Sources: USDA, Mercato, CONAB, internal. April 2020
Trend toward an increase in corn acreage (trends at the end of March)
United States
↗ Acreage
Greater Europe
↗ Acreage
Brazil
↗ Safrinha
acreage
JULY 2020INVESTORS PRESENTATION34
SALES OF FIELD SEEDS
SALES AT THE END OF THE 3RD QUARTER 2019-2020
468
199
94
In M€
Europe Fine growth in the sales of corn seeds:
The delay noted at the end of the 2nd quarter has largely been caught up
Solid performances in Western Europe, Turkey and Russia
Sales of sunflower seeds down:Drop in business mainly in Ukraine and in Turkey
At the same time, significant growth of sales in France and in Russia which should result in
market share gains
Significant increase in sales in Europe, with seed deliveries globally being assured, in
spite of certain difficulties in terms of logistics
South AmericaExtremely marked increase in business over the 3rd quarter:
In Brazil, strong growth in safrinha corn, both in volume and value, and excellent growth of
soybean
In Argentina: sales up, benefiting from the integration of the company Sursem
Europe
North
America
(AgReliant)
Other zones
ANALYSIS
PER GEOGRAPHICAL ZONE(evolutions on a like-for-like basis,
before application of IFRS 11)
(+1%)
(-4%)
(+24%)
TOTAL SALES
(including AgReliant): 761 M€
Solid business growth over the 3rd quarter
Associated companiesNorth America (AgReliant): sales slightly higher for corn and down for soybean, in a market
that remains uncertain in terms of definitive crop allocations
Africa (Seed Co): strong increase in international activities, confirming its position as the
No. 1 African seed company; furthermore, in Zimbabwe, good control of the impacts of the
local economic crisis
JULY 2020INVESTORS PRESENTATION35
CONSOLIDATED SALES* PER GEOGRAPHICAL ZONE
SALES AT THE END OF THE 3RD QUARTER 2019-2020
Americas
222 M€. +10.6%**
Africa/Middle East102 M€. +8.4%**
Europe
617 M€. +1.3%**
Asia/Oceania
79 M€. +2.5%**
60 %
10 %
60%
22%
8%
10%
*Sales of products
**On a like-for-like basis compared with 2018-2019
Asia/
Oceania
Europe
Americas
Africa/
Middle East
JULY 2020INVESTORS PRESENTATION36
SALES AT THE END OF THE 3RD QUARTER 2019-2020
CONSOLIDATED SALES* PER QUARTER
Vegetable Seeds
Field Seeds Europe
Field Seeds other zones
Garden Products and Holdings
SALES*
PER QUARTERIn M€
8 7 5 625 22 1616 32 32 41 16 21 20
8084 80 72
301 312
104
103109 136 140
199216
250
Q1 18-19 Q1 19-20 Q2 18-19 Q2 19-20 Q3 18-19 Q3 19-20 Q4 18-19 Q4 19-20
253
208
389
541
232
259
Dis
clo
su
re o
n A
ug
ust
3,
20
20
* Revenue from ordinary activities
571
APRIL 23, 2020SALES AT THE END OF THE 3RD QUARTER 2019-202037
GLOBAL HEALTH CRISIS UPDATE ON THE SITUATION
JULY 2020INVESTORS PRESENTATION38
UPDATE ON THE SITUATION
GLOBAL HEALTH CRISIS
A twofold priority for Vilmorin & Cie
Implementation of all the health and
organizational measures necessary and
recommended by the government authorities
in the different countries where we are
located
Vilmorin & Cie’s capacity to adapt and secure
its operational organization quickly and
efficiently
Total mobilization of the teams
Almost all the industrial sites and research
centers continue to operate to serve farmers
and vegetable growers
Ensure the continuity of our activities
A fundamental role for Vilmorin & Cie, as a seed
company, in the context of this crisis:
seeds secure the food of today and especially
that of tomorrow
Ensure the health and safety of
all our employees, customers and
stakeholders
The top priority
JULY 2020INVESTORS PRESENTATION39
AN UNUSUAL MONTH OF MARCH, DUE TO THE UNPRECEDENTED HEALTH CRISIS
GLOBAL HEALTH CRISIS
Extremely dynamic increase in the seeds activity
A sudden halt (temporary) for the Garden Products business
- Sales growth higher than 15%* both in vegetable seeds and field seeds
A rise certainly due in part to anticipated orders
- A drop in sales of about 40%*, after strong growth in January and February
Business directly impacted by the closure of garden centers and DIY stores
*On a like-for-like basis
JULY 2020INVESTORS PRESENTATION40
OUTLOOK FOR 2019-2020
JULY 2020INVESTORS PRESENTATION41
A 4TH QUARTER WITH PARTICULARLY DECISIVE CHALLENGES, GIVEN THE GLOBAL HEALTH CRISIS
OUTLOOK FOR 2019-2020
Beyond the high quality 3rd quarter, Vilmorin & Cie has identified several major risks related to the crisis, concerning:
Vilmorin & Cie confirms the suspension of its objectives for fiscal year 2019-2020
as already previously stated*
Its operational organization
The capacity of its customers,
whether farmers or vegetable
growers, to operate
More globally,
all the additional costs
generated by the crisis
These impacts may still materialize, both on business and the operating margin, from the 4th quarter of the fiscal year onwards
Vilmorin & Cie is not in a position, at this stage, to quantify these potential impacts precisely, bearing in mind the unprecedented level of uncertainty regarding the extent and the duration of the
pandemic, made even more complex by the diversity of its activities and markets
A persistent lack of visibility which means that it is not possible to define objectives for
2019-2020 with any reliability
*Cf. Vilmorin & Cie press release of March 26, 2020
JULY 2020INVESTORS PRESENTATION42
A SOLID FINANCIAL SITUATION
Vilmorin & Cie benefits from a solid financial situation and adequate financial resources,
in particular with:
-A syndicated bank loan of 300 M€ over 5 years, signed in May 2019
-A private medium and long-term “Schuldschein” placement for a total amount of 250 M€, signed
in June 2019
-A long-term funding agreement devoted to research signed during the current fiscal year with the
European Investment Bank for a total of 170 M€,
-Supplemented by bilateral short-term liquidity lines with its main banks
OUTLOOK FOR 2019-2020
Objective: securing the potential consequences of the pandemic
At the same time, Vilmorin & Cie has taken all necessary measures to control its
operating expenses and industrial investments
JULY 2020INVESTORS PRESENTATION43
RESILIENT DEVELOPMENT PERSPECTIVES
OUTLOOK FOR 2019-2020
Today’s crisis highlights
the crucial importance of seeds,
the first link in the food chain, to ensure food security
Solidly positioned in this sector,
Vilmorin & Cie will thus continue to demonstrate the
robustness of its development model, offering prospects of
resilient development, in the short, medium and long term
JULY 2020INVESTORS PRESENTATION44
VILMORIN & CIEON THE STOCK EXCHANGE
JULY 2020INVESTORS PRESENTATION45
€48.50SHARE PRICE
ON JUNE 29, 2020
VILMORIN & CIE ON THE STOCK EXCHANGE
EVOLUTION OF THE SHARE PRICE (over 1 year)
MARKET CAPITALIZATION
ON JUNE 29, 2020
€1.1BN.
Sources: Euronext.com; internal.
Vilmorin & Cie : +105.15% 15 years +18.57% 10 years -0.95% 1 year
From: 2019-06-29 to: 2020-06-29
Disclosure of sales
for the 3rd quarter
19-20
Disclosure of
annual sales 18-19
CAC 40
Vilmorin & Cie
Disclosure of
annual results 18-19
Disclosure of sales
for the 1st quarter 19-20
Disclosure of sales
for the 1st semester 19-20
JULY 2020INVESTORS PRESENTATION46
DIVIDENDS
VILMORIN & CIE ON THE STOCK EXCHANGE
* calculated on the basis of 20,833,902 shares
** calculated on the basis of 22,917,292 shares
Pay-out 44.8% 38.6% 38.4% 38.0% 41.9%
In €
JULY 2020INVESTORS PRESENTATION47
SCHEDULE AND CONTACTS
JULY 2020INVESTORS PRESENTATION48
SCHEDULE
MONDAY AUGUST 3, 2020(1)
Disclosure of sales for fiscal year
2019-2020
WEDNESDAY OCTOBER 14, 2020(1)
Disclosure of results for fiscal year
2019-2020
MONDAY NOVEMBER 2, 2020(1)
Disclosure of sales at the end of
the 1st quarter 2020-2021
FRIDAY DECEMBER 11, 2020
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.
JULY 2020INVESTORS PRESENTATION49
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
JULY 2020INVESTORS PRESENTATION50
GLOSSARY
JULY 2020INVESTORS PRESENTATION51
GLOSSARY
Current data:
Current data is data expressed at the historical currency exchange rate for the period, and without
adjustment for any changes in scope.
Current operating margin:
The current operating margin is defined as the accounting operating margin restated for any impairment
and reorganization costs.
EBITDA:
The EBITDA is defined as the operating result to which are added any provisions for depreciation,
amortization and impairment.
JULY 2020INVESTORS PRESENTATION52
GLOSSARY
Financial indebtedness:
Financial indebtedness corresponds to the financial debts less cash and cash equivalents.
Like-for-like data:
Like-for-like data is data that is restated for constant scope and currency translation. Therefore, financial data
for 2018-2019 is restated with the average rate for fiscal year 2019-2020, and any other changes to the
scope, in order to be comparable with data for fiscal year 2019-2020.
Variations in the consolidated scope come from the acquisition of the companies Sursem and Geneze (South
America. Field Seeds) finalized in December 2018 and from the sale of the company Van Den Berg
(Netherlands. Garden Products) in June 2019.
Research investment:
Research investment corresponds to gross research expenditure before recording as fixed assets any
research costs and research tax relief.
JULY 2020INVESTORS PRESENTATION53
53
APPENDICES
JULY 2020INVESTORS PRESENTATION54
APPENDICES
KEY FINANCIAL DATA
FOR THE 1ST SEMESTER 2019-2020
JULY 2020INVESTORS PRESENTATION55
CONSOLIDATED SALES*
RESULTS FOR THE 1ST SEMESTER 2019-2020
In M€
* Revenue from ordinary activities
1st SEMESTER
+2.5%
+6.6%
JULY 2020INVESTORS PRESENTATION56
CONSOLIDATED SALES ON DECEMBER 31, 2019
RESULTS FOR THE 1ST SEMESTER 2019-2020
SALES
PER GEOGRAPHICAL ZONE*
SALES*
PER DIVISION
* Sales of products
SALES
PER PRODUCT*
* Revenue from ordinary activities
* Sales of products
JULY 2020INVESTORS PRESENTATION57
SALES* PER ACTIVITY
* Revenue from ordinary activities
In M€
RESULTS FOR THE 1ST SEMESTER 2019-2020
SALES OF
VEGETABLE SEEDS
* Revenue from ordinary activities
after application of IFRS 11 (i.e. excluding AgReliant)
SALES OF
FIELD SEEDS
+9.5%
+2.5%
+3.9%
+1.9%
JULY 2020INVESTORS PRESENTATION58
INCOME STATEMENT
RESULTS FOR THE 1ST SEMESTER 2019-2020
In M€ 12.31.2018
12.31.2018
restated
for IFRS 16
12.31.2019Variation
with current data
Variationvs 12.31.2018
restated
Sales 460.4 460.4 490.8 +6.6% +6.6%
Commercial margin 233.0 233.0 255.3 +22.3 M€ +22.3 M€
Commercial margin rate 50.6% 50.6% 52.0% +1.4 pt +1.4 pt
Operating income -40.5 -39.2 -46.7 -6.2 M€ -7.5 M€
Operating margin rate -8.8% -8.5% -9.5% -0.7 pt -1.0 pt
Financial income -19.4 -21.0 -23.0 -3.6 M€ -2.0 M€
Income from associated
companies -7.9 -7.9 -22.4 -14.5 M€ -14.5 M€
Income taxes 28.2 28.3 28.7 +0.5 M€ +0.4 M€
Net income -39.6 -39.8 -63.4 -23.8 M€ -23.6 M€
Group share of net income -39.2 -39.4 -61.9 -22.7 M€ -22.5 M€
JULY 2020INVESTORS PRESENTATION59
INCOME STATEMENT – OPERATING CHARGES
RESULTS FOR THE 1ST SEMESTER 2019-2020
CG = Capital Gains
In M€ 12.31.2018
12.31.2018
restated
for IFRS 16
12.31.2019Variation
with current data
Variationvs 12.31.2018
restated
Marketing and sales -93.8 -93.8 -100.4 +7.0% +7.0%
Research and development -96.0 -96.0 -107.8 +12.3% +12.3%
Administration and other charges -93.3 -92.0 -97.7 +4.7% +6.2%
Impairments -0.9 -0.9 0.1 +1.0 M€ +1.0 M€
Reorganization -1.5 -1.5 -0.9 -(0.6) M€ -(0.6) M€
Disposal of assets 12.0 (CG) 12.0 (CG) 4.7 (CG) -7.3 M€ -7.3 M€
Net operating charges -273.5 -272.2 -302.0 +(28.5) M€ +(29.8) M€
JULY 2020INVESTORS PRESENTATION60
KEY FIGURES PER ACTIVITY (CONTRIBUTION TO CONSOLIDATED RESULTS)
RESULTS FOR THE 1ST SEMESTER 2019-2020
Sales* Operating income Net income
In M€ 12.31.2018 12.31.2019 12.31.2018 12.31.2019 12.31.2018 12.31.2019
Vegetable Seeds 239.2 248.4 -11.2 -17.0 -12.1 -12.4
Field Seeds 209.0 228.9 -16.3 -18.4 -18.5 -38.5
Garden Products & Holdings 12.2 13.5 -13.0 -11.3 -9.0 -12.5
Consolidated 460.4 490.8 -40.5 -46.7 -39.6 -63.4
* Revenue from ordinary activities
JULY 2020INVESTORS PRESENTATION61
BALANCE SHEET STRUCTURE
RESULTS FOR THE 1ST SEMESTER 2019-2020
In M€
Total balance sheet 2 544 2 540 2 609
including cash and bank 202 202 208
JULY 2020INVESTORS PRESENTATION62
IMPACTS OF THE STANDARD IFRS 16 ON THE INCOME STATEMENT
RESULTS FOR THE 1ST SEMESTER 2019-2020
Leases
Depreciation,
Amortization &
Impairment
Financial income
Others
Cancellation of rents on
operating leases
Amortization
of new “assets”
(right-of-use)
Financial interest related
to leases
Deferred taxes
12.8
Amount
in M€
-10.9
-1.6
-0.1
1
2
3
4
In M€
S1
2019/2020
before IFRS
16
Impact
IFRS 16
S1
2019/2020
including
IFRS 16
Revenue from ordinary activities 490.8 490.8
Cancellation of leases 12.8 12.8
EBITDA 58.1 12.8 70.9
Amortization of lease contracts -10.9 -10.9
Operating income -48.6 1.9 -46.7
Profit from associated companies -22.4 -22.4
Interest costs -16.9 -16.9
Interest costs related to leasing
contracts -1.6 -1.6
Other financial income and charges -4.5 -4.5
Income taxes 28.8 -0.1 28.7
Net income for the period -63.6 0.2 -63.4
1
2
3
4
JULY 2020INVESTORS PRESENTATION63
IMPACTS OF THE STANDARD IFRS 16 ON THE BALANCE SHEET
RESULTS FOR THE 1ST SEMESTER 2019-2020
Assets
Equity
Liabilities
Others
Right-of-use
leased assets
Impact of the
retrospective method
Lease obligations
Deferred taxes on assets
70.4
Amount
in M€
(2.5)
73.8
0.9
1
2
3
4
In M€
S1 2019/2020
before IFRS
16
Impact
IFRS 16
S1 2019/2020
including
IFRS 16
Intangible fixed assets 1,172.9 1,172.9
Tangible fixed assets 291.4 -0.7 290.7
Right-of-use leased assets 71.1 71.1
Financial fixed assets 351.1 351.1
Deferred taxes 25.2 0.9 26.1
Current assets 1,251.3 1,251.3
Cash and cash equivalents 207.9 207.9
TOTAL ASSETS 3,299.8 71.3 3,371.1
Consolidated equity 1,219.2 -2.5 1,216.7
Financial debts 1,469.8 -0.4 1,469.4
Lease obligations 74.2 74.2
Other liabilities 610.8 610.8
TOTAL LIABILITIES 3,299.8 71.3 3,371.1
1
4
2
3
JULY 2020INVESTORS PRESENTATION64
APPENDICES
KEY FINANCIAL DATA
FOR FISCAL YEAR 2018-2019
JULY 2020INVESTORS PRESENTATION65
INCOME STATEMENT
In M€ 2017-2018 2018-2019 Variation
Sales 1,346.0 1,390.7 +3.3%
Sales margin 658.7 678.7 +20.0 M€
Sales margin rate 48.9% 48.8% -0.1 pt
Operating income 97.1 111.0 +13.9 M€
Operating margin rate 7.2% 8.0% +0.8 pt
Current operating margin rate 7.2% 8.4% +1.2 pt
Income from associated companies 23.3 26.0 +2.7 M€
Financial income -38.0 -45.0 -7.0 M€
Income taxes -5.5 -14.1 -8.6 M€
Net income 76.9 77.9 +1.0 M€
Net income group share 74.1 73.9 -0.2 M€
RESULTS FOR FISCAL YEAR 2018-2019
JULY 2020INVESTORS PRESENTATION66
KEY FIGURES FOR EACH ACTIVITY’S CONTRIBUTION TO CONSOLIDATED SALES
* Revenue from ordinary activities
Sales* Operating income Net income
In M€ 2017-2018 2018-2019 2017-2018 2018-2019 2017-2018 2018-2019
Vegetable Seeds 673.1 687.5 114.8 102.7 80.7 71.7
Field Seeds 623.3 649.9 2.3 27.4 20.4 32.8
Garden Products and Holdings 49.6 53.4 -20.0 -19.1 -24.2 -26.6
Consolidated 1,346.0 1,390.7 97.1 111.0 76.9 77.9
RESULTS FOR FISCAL YEAR 2018-2019
JULY 2020INVESTORS PRESENTATION67
In M€ 2017-2018 2018-2019
Net indebtedness at the beginning of the FY 714 766
EBITDA 297 322
Variation of working capital needs -68 -2
Other operating items -15 -61
Net industrial investments -46 -17
Activated development costs -171 -171
Operating cash-flow -3 70
Net financial investments -8 -151
Capital and other equity contributions -3 -3
Dividends -18 -24
Net financial charges -25 -30
Free cash-flow -57 -138
Other restatements (IFRS/Currency, etc.) 5 -8
Net indebtedness at the end of the FY 766 912
FREE CASH-FLOW
RESULTS FOR FISCAL YEAR 2018-2019
JULY 2020INVESTORS PRESENTATION68
BALANCE SHEET STRUCTURE
Total balance sheet 2,218 2,388
of which cash 197 249
In M€
RESULTS FOR FISCAL YEAR 2018-2019
Gearing 68.9%Leverage 2.8
06.30.201906.30.2018
JULY 2020INVESTORS PRESENTATION69
APPENDICESVILMORIN & CIE ORGANIZATION CHART
69
JULY 2020INVESTORS PRESENTATION70
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
JULY 2020INVESTORS PRESENTATION71
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
