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JULY 2020 INVESTORS PRESENTATION 1 JULY 2020 INVESTORS PRESENTATION

Investors-presentation JULY 2020...2020/07/07  · 9 INVESTORS PRESENTATION JULY 2020 A LONG TERM REFERENCE SHAREHOLDER Groupe Limagrain: An agricultural cooperative owned by French

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Page 1: Investors-presentation JULY 2020...2020/07/07  · 9 INVESTORS PRESENTATION JULY 2020 A LONG TERM REFERENCE SHAREHOLDER Groupe Limagrain: An agricultural cooperative owned by French

JULY 2020INVESTORS PRESENTATION1

JULY 2020

INVESTORS PRESENTATION

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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

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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

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JULY 2020INVESTORS PRESENTATION4

4

VILMORIN & CIE AT A GLANCE

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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

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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

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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

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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:

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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.)

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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

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JULY 2020INVESTORS PRESENTATION11

11

VILMORIN & CIE GROWTH STRATEGY

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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

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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

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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

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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

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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

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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$

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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

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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:

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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

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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

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JULY 2020INVESTORS PRESENTATION22

CSR PROGRAM

22

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JULY 2020INVESTORS PRESENTATION23

VILMORIN & CIE’S BUSINESS MODEL

CSR PROGRAM

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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

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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

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JULY 2020INVESTORS PRESENTATION26

SALES AT THE END OF THE 3RD QUARTER 2019-2020 (ON MARCH 31, 2020)

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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

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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

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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 *

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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%

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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

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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

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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

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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

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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

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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

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APRIL 23, 2020SALES AT THE END OF THE 3RD QUARTER 2019-202037

GLOBAL HEALTH CRISIS UPDATE ON THE SITUATION

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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

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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

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JULY 2020INVESTORS PRESENTATION40

OUTLOOK FOR 2019-2020

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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

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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

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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

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JULY 2020INVESTORS PRESENTATION44

VILMORIN & CIEON THE STOCK EXCHANGE

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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

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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 €

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JULY 2020INVESTORS PRESENTATION47

SCHEDULE AND CONTACTS

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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.

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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

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JULY 2020INVESTORS PRESENTATION50

GLOSSARY

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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.

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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.

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JULY 2020INVESTORS PRESENTATION53

53

APPENDICES

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JULY 2020INVESTORS PRESENTATION54

APPENDICES

KEY FINANCIAL DATA

FOR THE 1ST SEMESTER 2019-2020

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JULY 2020INVESTORS PRESENTATION55

CONSOLIDATED SALES*

RESULTS FOR THE 1ST SEMESTER 2019-2020

In M€

* Revenue from ordinary activities

1st SEMESTER

+2.5%

+6.6%

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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

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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%

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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€

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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€

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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

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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

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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

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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

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JULY 2020INVESTORS PRESENTATION64

APPENDICES

KEY FINANCIAL DATA

FOR FISCAL YEAR 2018-2019

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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

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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

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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

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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

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APPENDICESVILMORIN & CIE ORGANIZATION CHART

69

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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

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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