INVESTORS PRESENTATION - APRIL 2021 - Vilmorin & Cie
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INVESTORS PRESENTATION APRIL 2021 1 INVESTORS PRESENTATION APRIL 2021
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 2 INVESTORS PRESENTATION APRIL 2021
AGENDA VILMORIN & CIE AT A GLANCE s. 04 VILMORIN & CIE GROWTH STRATEGY s. 11 CSR PROGRAM s. 22 RESULTS FOR THE 1ST SEMESTER 2020-2021 s. 26 NEWS s. 35 CHALLENGES & OUTLOOK FOR THE END OF FISCAL YEAR 2020-2021 s. 37 VILMORIN & CIE ON THE STOCK EXCHANGE s. 45 SCHEDULE AND CONTACTS s. 48 GLOSSARY s. 51 APPENDICES s. 54 3 INVESTORS PRESENTATION APRIL 2021
VILMORIN & CIE
AT A GLANCE
4
4 INVESTORS PRESENTATION APRIL 2021
VILMORIN & CIE AT A GLANCE
VILMORIN & CIE, 4TH LARGEST SEEDS COMPANY IN THE WORLD
Fourth largest seeds company in the world with leading positions on its core activities
N°1 N°6
worldwide worldwide
for vegetable seeds for field 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, both an agricultural cooperative owned by French farmers and an
international seed group
5 INVESTORS PRESENTATION APRIL 2021
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
SEEDS 337 VARIETIES
LAUNCHED IN 2019-2020
DISTRIBUTING AND
SELLING SEEDS
6 INVESTORS PRESENTATION APRIL 2021
VILMORIN & CIE AT A GLANCE
A TRACK RECORD COMBINING ORGANIC Eureka Seed / USA
AND EXTERNAL GROWTH Link Seed / South Africa
Seed Co / Africa (*) Canterra Seeds / Canada(*)
In M€ BSF/Genesis/Trigen/
Bisco Bio Sciences / India Seed Asia / Thailand Hengji Limagrain Seeds /
Trio Research / USA
China (JV)
Shamrock / USA and Sursem and Geneze /
Su Tarim / Turkey Century Seeds / India Golden Acres / USA
Mexico South America
Brasmilho Sementes
Meza Maize / USA Tropdicorp/Vietnam Genica Research / USA AdvanSeed / Denmark
Guerra / Brazil
2000 140
Field Seeds acquisition 1800 1715
1677
1627 1606 1634 120
1600 1500 1531
1472
1414 1435,2
1391
1338 1325 1346 100
1400 1192 99,4 1269
1200 91
1064 29.3 86,9 80
1002 84,1
Vegetable Seeds acquisition 80,6 61.7
76,9 77,9
1000
72,9
67,5 60
800 61,7 59,3
53 54,1
600 40
(*) Share of profit of associates.
400
Acquisitions examples are not exhaustive.
20
Net income (Groupe share) 200
Sales
Sales (IFRS 11)
0 0
Capital gains from sale of minority stakes
in China 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
7 INVESTORS PRESENTATION APRIL 2021
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 brands:
8 INVESTORS PRESENTATION APRIL 2021
VILMORIN & CIE AT A GLANCE
A LONG TERM REFERENCE SHAREHOLDER
BREAKDOWN OF THE CAPITAL
Groupe Limagrain: ON DECEMBER 31, 2020
Institutional investors Individual
(of which ~50% Shareholders
internationally based: 5,11%
USA, UK, Singapore,
Germany, etc.)
18,99%
An agricultural cooperative owned by French farmers Bpifrance
5,71%
An international seed group involved in the development of
integrated agricultural chains
Vegetable Seeds and Field Seeds Groupe
Limagrain
70,19%
Agri-Food
TOTAL NUMBER OF SHARES:
(Ingredients and
Bakery Products) 22,917,292
Sources: Euroclear, Internal
9 INVESTORS PRESENTATION APRIL 2021
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 their needs
LIMAGRAIN IN BRIEF
MISSION Cooperating for the progress of agriculture everywhere, for
everyone
STRATEGY Serving all types of agriculture, taking into account their
diversity
Helping to meet the food needs in terms of nutrition, health
and consumption patterns
KEY FIGURES Nearly 1,500 farmer members
1,909 million euros in sales + 642 million euros in sales
from strategic partnerships*
More than 9,000 employees
* Strategic partnerships: AgReliant, AGT, Genective, Seed Co, Soltis, Canterra Seeds, Hengji
Limagrain Seeds, Carthage Génétique and Prime Seed Co. 2019-2020.
10 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE
GROWTH STRATEGY
11
11 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
1/ PROMISING WORLD SEEDS MARKETS
WORLD MARKET
POWERFUL GROWTH FACTORS: FOR COMMERCIAL SEEDS (2019)
14.2%
Increase in seeds demand Vegetable seeds
(Conventional seeds)
51.1%
Growth in the world population (10 bn in 2050) Field seeds –
GM seeds
Improvement in the standards of living
34.7%
Field seeds –
Conventional seeds
Increase in the use of commercial seeds
MARKET VALUE 2019:
Adoption of genetically modified
(“GM”) seeds worldwide $39.8 BN.
Source: AgbioInvestor 2018 and 2019
12 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
1/ MARKET FOR SEEDS: SLIGHT INCREASE FOR GMO IN 2018
WORLD MARKET ACREAGE
191.7 million hectares (more than 10% of arable land), +1.9% /
2017, grown by 17 million farmers in 26 countries
191,7
190
GMO :
170
ACREAGE PER COUNTRY
150
million ha
130
110
90
Others
70 China
50 Canada
India
30 Argentina
10 Brazil
USA
-10
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
WORLD MARKET VALUE
More than $20 billion in 2019 (i.e. 51.1% of the world market for seeds)
Sources: ISAAA 2019. AgbioInvestor 2018
13 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
1/ MARKET FOR SEEDS: HIGH BARRIERS TO ENTRY
A concentrated competitive environment WORLDWIDE COMPETITIVE ENVIRONMENT FOR SEEDS
High barriers to entry: Bayer* (DEU)
Width and depth of the genetic resources
Corteva (USA)
R&D investment
(conventional breeding and biotechnologies) Syngenta (CHN)
International coverage Vilmorin & Cie (FRA)
KWS (DEU)
BASF (DEU)
DLF** (DNK)
Rijk Zwaan (NLD)
Sakata (JPN)
LPHT (CHN)
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Field Seeds Strategic partnerships Vegetable Seeds
In M€. Sources: company release and internal est. sales for 2020. Syngenta, LPHT sales for 2019.
Vilmorin & Cie and KWS before IFRS11. Strategic partnerships include 50% of AgReliant and Soltis sales for Vilmorin & Cie and AgReliant
and Kenfeng sales for KWS.
*Bayer: field seed sales include soybean, corn and an internal est. of other field seed sales (cotton, rapeseed, wheat, rice & sorghum).
**DLF seed sales restated excluding the vegetable seed multiplication business and the potato business.
Exchange rate: EUR 1 = USD 1.11
14 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
2/ A STRATEGY OF WINNING MARKET SHARES
3 STRATEGIC FOUNDATIONS 3 STRATEGIC PRIORITIES
1 Vegetable seeds
OBJECTIVE
Reinforce world
leadership
Strong, continuous
investment in
research
2 Corn seeds
OBJECTIVE
Confirm its position
as a global player
Strong
internationalization
of the activities
OBJECTIVE
3 Wheat seeds
Ultimately
become the
world reference
Capacity to combine
targeted acquisitions
and partnerships
15 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
3/ VEGETABLE SEEDS. DIVISION PROFILE
KEY FIGURES 2019-2020
- A very strong competitive position addressing COUNTRIES
N°1 worldwide vegetable growers and food processors 705.5 M€
SALES 36 WITH
LOCATIONS
worldwide - An extremely diversified product line-up with
more than 80 different crops for which around 40 OPERATING
for vegetable
Vilmorin & Cie develops research programs: tomato, 14.6 % MARGIN
seeds Current operating margin: 14.6%
sweet and hot pepper, carrot, etc
SALES OF VEGETABLE SEEDS SALES OF VEGETABLE SEEDS
PER CROP. 2019-2020 PER GEOGRAPHICAL AREA. 2019-2020
Tomato (1)
Africa/Middle East
17%
Europa
Others 36%
Asia/Oceania
15%
Carrot (1)
Sweet and hot
pepper (3)
Onion
Americas
Cauliflower Melon (1)
Squash (1) 32%
(1),(2),(3): worldwide competitive positions
16 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
3/ VEGETABLE SEEDS. STRATEGY
Strengthen 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/zone segments and become a leader on all key markets
with strong ambitions in Asia and all the strategic crops
Examples of acquisitions:
CENTURY SEEDS TROPDICORP GENICA RESEARCH ADVANSEED
October 2012 March 2015 February 2016 July 2018
10 local crops Bitter gourd, pumpkin, Sweet and hot peppers, Spinach and leafy
India wax gourd cucumber, summer squash vegetables
Sales: 4 M€ Vietnam United States Denmark
Sales: 6 M$ Sales: more than 25 M$ Sales: 3 M€
17 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
4 / FIELD SEEDS. DIVISION PROFILE
- One
- Oneofofthe
thetop
topplayers
playersin
in strategic crops targeting
strategic crops targeting KEY FIGURES 2019-2020*
N°6 farmers
farmers with a multi-crop strategy
677 M€
SALES
worldwide - 2- worldwide
4 strategic crops: corn,
strategic wheat,
crops: sunflower
corn and
and wheat
rapeseed - 2 of which are global: corn and wheat
for field seeds - And regional strategic crops: sunflower, rapeseed COUNTRIES 2.9% OPERATING
MARGIN
and- And a fullinrange
barley
eachVilmorin
adapted
Europe,
region where
to India,
rice in the needs
and of farmers in
soybean, 36 WITH
LOCATIONS
Current operating margin: 3.2%
which & Cieit distributes
operates: barley, soybean,
in North millet,
and South
rice, and
America andpulses
in South Africa * Taking into account the impact of the standard IFRS 11, i.e.
excluding AgReliant (North America. Field Seeds).
SALES OF FIELD SEEDS* SALES OF FIELD SEEDS*
PER CROP. 2019-2020 PER GEOGRAPHICAL AREA. 2019-2020
6% Other field seeds Asia/Oceania
Africa/Middle East 4% 3%
10% Rapeseed
6% Feed grains Americas 12%
Cereals (corn,
wheat, barley) Europe
57% 81%
21% Sunflower
18 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
4/ CORN SEEDS. STRATEGY
CORN SEEDS: CONFIRM ITS POSITION AS A GLOBAL PLAYER
on the largest world seed market in terms of value (nearly $17 bn in 2019*)
Reinforce leading positions in Europe and North America
Develop activities in South America, Asia and Africa
Recent operations:
SEED CO Hengji Limagrain Seeds SURSEM and GENEZE
Minority stake. 2014 JV. September 2015 December 2018
#1 African seeds company Corn Corn
Sales: 114 M$ in 2019-2020 China Argentina and Brazil
6 factories & 9 research stations in south Production and Sales: more than 40 M$ in
east Africa distribution 2017
Develop a proprietary portfolio of GM seeds
Technological strategic partnership between GM corn traits licensing agreements with
Vilmorin & Cie and KWS Syngenta (October 2015)
*Source: AgbioInvestor 2019
19 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
4 / WHEAT SEEDS. STRATEGY
WHEAT SEEDS: ULTIMATELY BECOME THE WORLD REFERENCE
AUSTRALIA
Consolidate a position of leader in Europe (Australian Grain Technologies)
and Australia and become the world
reference of the first worldwide crop in terms
of cultivated surface areas (more than 220
million hectares in 2019*)
NORTH AMERICA
Develop more efficient seeds and contribute
United States
to converting the market to high value seeds
Develop solid positions in North America
Canada
*Sources: FAO, USDA.
20 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE GROWTH STRATEGY
5/ R&D: INNOVATE TO INSURE TOMORROW’S GROWTH
Maintain regular investment in research (breeding
and biotechnologies) and broaden the partnerships 2019-2020
1 380 1 482 1 576 1 494 1 523 1 561
16.7% OF SEED SALES
INVESTED IN RESEARCH
14%
INVESTED IN BIOTECHNOLOGIES
€310 MILLION
242
RESEARCH INVESTMENT
INTEGRATING PARTNERSHIPS*
*of which €260 million research investments without integrating partnerships
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
Sales of seeds
AgReliant’ sales of seeds (50%)
Investment in research
Investment in research/Sales of seeds (incl. 50% AgReliant)
21 INVESTORS PRESENTATION APRIL 2021CSR PROGRAM 22 INVESTORS PRESENTATION APRIL 2021
CSR PROGRAM VILMORIN & CIE’S BUSINESS MODEL 23 INVESTORS PRESENTATION APRIL 2021
CSR PROGRAM
A CSR PROGRAM ANCHORED IN VILMORIN & CIE’s DNA
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:
Contribute to lasting progress in Act responsibly Favoriser
Encouragelacooperation
coopération
agriculture through seed
A program truly anchored in Vilmorin & Cie’s DNA,
with the challenges that Vilmorin & Cie was already meeting in its daily actions
24 INVESTORS PRESENTATION APRIL 2021CSR PROGRAM
A CSR PROGRAM ANCHORED IN VILMORIN & CIE’s DNA
Particularly through:
Contribute to lasting progress Innovative and responsible solutions originating in plant genetics,
in agriculture through seed for all forms of agriculture Nearly 6,000 varieties
E.g. Rapeseed varieties LG Aviron and LG Ambassador marketed worldwide and
research work covering
Access to quality seeds for all farmers
55 plant species
E.g. Adaptation of the marketing and commercial offer
according to customer typology 337 new varieties
Protection and enrichment of plant biodiversity launched in 2019-2020
Vilmorin & Cie invests in the conservation of plant
biodiversity worldwide by contributing to the activities of
Act responsibly gene banks
Among objectives with
Encourage the professional fulfilment of employees
regard to the environment:
recover 85% of waste by
Act according to the ethical principles and to the Code of Conduct 2022
Limit the environmental impact of activities
Particularly through:
Encourage cooperation A societal commitment framework that aims to develop
176 measures
sustainable, efficient integrated chains with local
devoted to societal actions
stakeholders
in 2019-2020 such as
Commitment in regions where Vilmorin & Cie has sites with support for the creation of
respect to local cultures and specificities, fostered by its gardens in schools
organization and management model
25 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1ST SEMESTER 2020-2021 (ON DECEMBER 31, 2020) 26 INVESTORS PRESENTATION APRIL 2021
RESULTS FOR THE 1st SEMESTER 2020-2021
KEY POINTS
Very dynamic growth in sales for the first semester (+14% on a like-for-like basis)
• Vegetable Seeds: a high quality second quarter
Consolidation of world leadership, thanks to a very high-level commercial performance in most zones and crops
• Field Seeds: an excellent level of business over the second quarter
A good first part of the fiscal year in Europe, in particular by reaching the top European spot in rapeseed
Progress perfectly in line with Vilmorin & Cie’s ambitions in South America
Significant improvement in half-yearly results,
directly related to the increase in business and control over operating charges
SALES* OPERATING RESULT* EBITDA* NET INCOME*
526
112
491
71
62
460 -6
-32
-40
-41
-47 -63
Dec. 18 Dec. 19 Dec. 20 Dec. 18 Dec. 19 Dec. 20 Dec. 18 Dec. 19 Dec. 20 Dec. 18 Dec. 19 Dec. 20
* In M€
Upward revision of the annual objectives for 2020-2021
27 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021
REFERENCES
Accounting reference
IFRS on December 31, 2020
Scope
Disposal of activities run by the Garden Products division in Turkey, finalized at the end of fiscal year 2019-2020
Rates of the main currencies on December 31, 2020 (and December 31, 2019)
average close
Dec. 19 Dec. 20 Dec. 19 Dec. 20
$ 1.11 1.18 1.12 1.23
¥ 120 124 122 126
£ 0.88 0.90 0.85 0.90
TRY 6.36 8.94 6.68 9.11
ILS 3.89 3.99 3.88 3.94
BRL 4.49 6.36 4.52 6.37
INR 78.58 87.48 80.19 89.66
ARS 67.21 90.61 67.21 103
MXN 21.46 25.17 21.22 24.42
UAH 27.44 33.02 26.72 34.67
RUB 71.20 88.61 69.96 91.47
28 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021
CONSOLIDATED SALES*
In M€ 1st SEMESTER SALES FOR THE 1ST SEMESTER 2020-2021
PER DIVISION
(revenue from ordinary activities)
+7.1%
Garden Products and
+14.0% Holdings
4%
Field Seeds
48%
Vegetable Seeds
48%
* Revenue from ordinary activities
29 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021
ACTIVITY AND PERFORMANCES OF VEGETABLE SEEDS
In M€ 12.31.18 12.31.19 12.31.20 Variation
(12.31.20 vs 12.31.19)
Sales 239.2 248.4 253.1 +7.9%(1)
Operating income (11.2) (17.0) (1.7) +15.3 M€
Operating margin rate -4.7% -6.8% -0.7% +6.1 pts (1) On a like-for-like basis
A high quality 2nd quarter (+12.2%(1)), resulting in an increase in business of 7.9%(1) at the end of the semester.
Significant growth in several strategic crops (carrot, tomato, pepper, cauliflower and bean) and solid business increase in most
of the regions:
• particularly dynamic growth in Europe, North America and South America;
• less marked increase in Asia.
A 2nd quarter that enabled Vilmorin & Cie to achieve market share gains in several segments (carrot) and which also partly
includes anticipated orders, due to uncertainties linked to the health crisis.
Significant increase in the commercial margin rate (+2.8 points), due particularly to:
• a drop in obsolescence costs;
• and a favorable price and product mix effect.
5.3 M€ drop in operating charges, particularly due to savings directly related to the health crisis.
Consequently, a strong increase of the operating margin for the semester (+6.1 points).
30 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021
ACTIVITY AND PERFORMANCES OF FIELD SEEDS
In M€ 12.31.18 12.31.19 12.31.20 Variation
(12.31.20 vs 12.31.19)
Sales 209.0 228.9 254.2 +19.1%(1)
Operating income (16.3) (18.4) 3.9 +22.3 M€
Operating margin rate -7.8% -8.0% 1.5% +9.5 pts (1) On a like-for-like basis
An excellent level of business over the 2nd quarter (+29.2%(1)), resulting in 19.1%(1) growth at the end of the semester.
Europe: very strong business increase, largely as a result of anticipated sales of corn seed, as a consequence of the production
difficulties encountered this year on the European market
• Order books fuller compared to last year for the corn campaign and looking promising for the sunflower campaign.
• Excellent campaign for rapeseed, in spite of the significant drop in acreages, leading to large market share gains with Vilmorin & Cie now clearly positioned as the
European leader for this crop.
• Drop in sales of straw cereals (wheat, barley) and increase of forage seed sales.
South America: very strong increase in sales, both in Brazil and Argentina
• Strong increase in sales of corn seed in Brazil: quality 1st corn campaign (safra) and very promising 2nd campaign (safrinha), on dynamic agricultural markets.
• Stability of soybean sales in Brazil compared with last year.
• Very good corn campaign in Argentina: strong growth in sales volumes, reflecting gains in market share.
Slight increase of 0.2 points in the commercial margin rate, in particular due to the improvement of the margin in South America.
Good control over operating charges, with a reduction of 10.6 M€ (5.5 M€ on a like-for-like basis), notably due to savings achieved
in the context of the continuing health crisis.
As a result of these factors, strong increase of the operating margin (+9.5 points).
31 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021
ASSOCIATED COMPANIES
Variation
In M€ 12.31.18 12.31.19 12.31.20 (12.31.20 vs
12.31.19)
Income from associated
(7.9) (22.4) (12.0) +10.4(1)
companies (1) On a like-for-like basis
AgReliant (Field Seeds. North America)
Loss for the semester of 17.8 M€ (base 50%), an improvement compared to December 31, 2019:
Beginning of the sales campaign (corn, soybean) showing slight growth on a like-for-like basis compared to
December 31, 2019.
Reasonable perspectives for the 2021 sales campaign, in spite of the current reduction in orders for corn, in
the context of a fairly stable acreage expected for corn.
Seed Co (Field Seeds. Africa)
Contribution for the semester, on September 30, 2020, of 7.2 M€, a big improvement compared with 2019-2020,
due to the integration of a profit of 6.4 M€ representing the share of the income from the company Seed Co Limited
(Zimbabwe), favorably impacted by hyperinflation restatements.
Robust sales growth on all Seed Co’s African markets.
32 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021
OTHER ITEMS IN THE ANALYSIS OF CONSOLIDATED PERFORMANCES
Deterioration of the financial result (-4.3 M€)
• Improvement in the cost of funding of 4.2 M€, specifically as a result of the redemption
of certain debts and the impacts of the health crisis on interest rates and currency rates
in certain countries.
• Erosion of 8.5 M€ in other financial income and charges compared to the previous
fiscal year, mainly as a result of a deterioration in foreign exchange transactions and
positions.
Drop in tax income (-15.8 M€) compared to fiscal year 2019-2020, in line with the
evolution of the income.
33 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1st SEMESTER 2020-2021 PERFORMANCE 1ST SEMESTER: EVOLUTION OF NET INCOME (NI) FOR THE SEMESTER In M€ +31.5 34 INVESTORS PRESENTATION APRIL 2021
NEWS 35 INVESTORS PRESENTATION APRIL 2021
NEWS
Consolidation of the strategic partnership with Sofiprotéol(1)
devoted to Field Seeds activity in Europe
Strengthening of the equity capital of the Business Unit Limagrain Europe, with the support of
Sofiprotéol
The operation finalized: increase of Sofiprotéol’s stake in the capital of Limagrain Europe SAS,
by 25 million euros
▪ Sale of existing shares by Vilmorin & Cie
▪ Issue, by Limagrain Europe, of bonds redeemable as shares
The objective of this long-term commitment:
Accelerate the development of Limagrain Europe through continued investment in research,
while sustainably strengthening its competitive positions on the continent
Consolidation of the strategic partnership between Vilmorin & Cie and Sofiprotéol,
a historical minority shareholder of Limagrain Europe
An initial restructuring of the capital of Limagrain Europe SAS was finalized at the end of fiscal year 2019-2020, with
the strengthening of Vilmorin & Cie’s stake in Limagrain Europe SAS, through the acquisition of minority interests.
(1) A financing and development company and a subsidiary of the Avril group, committed to companies in the agro-industrial and agri-food world.
36 INVESTORS PRESENTATION APRIL 2021CHALLENGES AND OUTLOOK FOR THE END OF FISCAL YEAR 2020-2021 37 INVESTORS PRESENTATION APRIL 2021
CHALLENGES AND OUTLOOK FOR THE END OF FISCAL YEAR 2020-2021
A DECISIVE SECOND SEMESTER DUE TO THE SEASONAL NATURE OF BUSINESS
SALES*
PER QUARTER
571
Vegetable Seeds
Field Seeds Europe
Field Seeds other zones
Garden Products and Holdings 216
373
291
Disclosure August 2, 2021
259
Disclosure May 6, 2021
232 234 241
148
140 312
109 105
88
84 85 72 103
32 35 41 46 21 12
7 9 6 9 22 17
Q1 19-20 Q1 20-21 Q2 19-20 Q2 20-21 Q3 19-20 Q3 20-21 Q4 19-20 Q4 20-21
* Revenue from ordinary activities
38 INVESTORS PRESENTATION APRIL 2021CHALLENGES AND OUTLOOK FOR THE END OF FISCAL YEAR 2020-2021
VEGETABLE SEEDS
Challenges for the end of the fiscal year
Continuation, over the most important period of the fiscal year,
of the strengthening of the commercial positions
Ability to materialize development potential in Asia (China, India)
Evolution of currency exchange rates
Objective for 2020-2021 raised
Sales: Sales*: Objective:
+7.9% +6.9% +4% ≤ Sales ≤ +5%
Previous objective: Sales ≥ 3%
Reinforce position as No. 1 worldwide
12.31.20 01.31.21 06.30.21
S2: 64.8% of total sales in 2019-2020 Evolution on a like-for-like basis.
65.2% of total sales in 2018-2019 * Sales at the end of January 2021 non audited.
39 INVESTORS PRESENTATION APRIL 2021CHALLENGES AND OUTLOOK FOR THE END OF FISCAL YEAR 2020-2021
FIELD SEEDS
Challenges for the end of the fiscal year End of fiscal year challenges /
Confirmation of the promising trend for orders, particularly for corn Associated companies
in Europe, because of the high level of anticipated sales noted at AgReliant: Consolidation of
the beginning of the campaign positions in the context of fairly
stable acreage expected for corn
Perfect availability of corn seed and successful management of
Seed Co: Confirmation of the fine
margins in Europe, bearing in mind the difficulties encountered in
performance achieved over the
terms of corn seed production first semester and final impact of
Evolution of currency exchange rates currency evolution in Zimbabwe
Objective 2020-2021 raised
Sales: Sales* : Objective:
+19.1% +19.5% +5% ≤ Sales ≤ +6%
Previous objective: Sales ≥ 3 %
Strengthen positions in all the
12.31.20 01.31.21 06.30.21 regions where we are established
S2: 66.2% of total sales in 2019-2020
Evolution on a like-for-like basis
67.8% of total sales in 2018-2019 * Sales at the end of January 2021 non-audited.
40 INVESTORS PRESENTATION APRIL 2021CHALLENGES AND OUTLOOK FOR THE END OF FISCAL YEAR 2020-2021
OBJECTIVES 2020-2021
Upward revision of objectives for sales and current operating margin rate
Objective: Current operating margin rate
Sales: Sales*: +4% ≤ Sales ≤ +6%
+14.0% +13.7% Previous objective: Sales ≥ 3% of at least 8%,
including research investment
> 260 M€
12.31.20 01.31.21 06.30.21
Evolution on a like-for-like basis
* Sales at the end of January 2021 non-audited.
S2: 65.8% of total sales in 2019-2020
66.9% of total sales in 2018-2019
Aim for a contribution from associated companies* of around 22 million euros
* Main companies concerned: AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds)
… On the basis of an atypical benchmark, since the second semester of 2019-2020 was marked by the
emergence of the world health crisis
Confirmation of Vilmorin & Cie’s capacity to achieve a quality fiscal year,
on a world seed market that is fundamentally promising and resilient
41 INVESTORS PRESENTATION APRIL 2021OUTLOOK FOR 2020-2021
CONFIRMATION OF THE MID-TERM OUTLOOK
Seeds, a crucial segment for food security
and positioned at the heart of agricultural policy challenges
Confirmation of Vilmorin & Cie’s capacity to offer mid- and long-term
perspectives for sustainable, resilient development
Vegetable Seeds Field Seeds
Reinforce world leadership Be positioned as a global player, with
worldwide presence in corn and wheat, and
Strengthen positions on the more mature a portfolio of crops adapted to each region
markets (Europe, Middle East, North America)
Consolidate and develop alliances and
Strongly develop presence in Asia, ultimately partnerships to gain access to technologies and
reaching about 20% of sales on this continent (vs pursue varietal innovation as efficiently as
about 12% in 2019-2020) possible
Develop corn activities in new regions, as a
Build up the foundations for business
priority in South America and Africa, eventually to
organization in Africa beyond current positions in
reach between 5 and 10% of market shares
North Africa, to bring out the continent’s potential
42 INVESTORS PRESENTATION APRIL 2021OUTLOOK FOR 2020-2021
CONFIRMATION OF OBJECTIVES
Vegetable Seeds
Strengthen position as No. 1 worldwide Objective for 2020-2021
> By reinforcing commercial positions, with the aim of becoming a leader on all Vegetable Seeds sales
the main markets and for all the strategic crops, with a special focus on Asia
up by ≥ 3%
on a like-for-like basis
Field Seeds
Develop business in all the areas where it operates Objective for 2020-2021
> By pursuing consolidation of its European positions, both in Western and
Eastern Europe Field Seeds sales
> And by confirming the strong growth impetus posted in its development regions
up by ≥ 3%
on a like-for-like basis
in 2019-2020
In market conditions that will very probably still lack visibility
as a result of the likely continuation of the global health crisis
43 INVESTORS PRESENTATION APRIL 2021OUTLOOK FOR 2020-2021
CONFIRMATION OF OBJECTIVES
Consolidated sales Current operating margin rate
up by at least 3% close to 8%,
on a like-for-like basis including research investment > 265 M€
Aim for a contribution from its associated companies*
of around 22 million euros.
* Mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT
(Australia. FieldSeeds).
Pursue business growth while continuing to deliver
solid financial performances
on a resilient world seed market
44 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE ON THE STOCK EXCHANGE 45 INVESTORS PRESENTATION APRIL 2021
VILMORIN & CIE ON THE STOCK EXCHANGE
EVOLUTION OF THE SHARE PRICE (over 1 year)
From: 2020-04-07 to: 2021-04-07
Vilmorin & Cie
Disclosure of
annual sales 19-20
Disclosure of
annual results 19-20
€60.10
SHARE PRICE
ON APRIL 7, 2021
Disclosure of sales for
the 3rd quarter 19-20
CAC 40 MARKET CAPITALIZATION
ON APRIL 7, 2021
€1.4BN.
Disclosure of sales Disclosure of sales and results
for the 1st quarter 20-21 for the 1st semester 20-21 Sources: Euronext.com; internal.
Vilmorin & Cie : +89.50% 15 years +16.03% 5 years +66.84% 1 year
46 INVESTORS PRESENTATION APRIL 2021VILMORIN & CIE ON THE STOCK MARKET
DIVIDENDS
Evolution of the earnings per share, group share, and dividend per action(1)
(in euros)
Free share allotment Free share allotment
1 for 10 1 for 10
Earnings (group share)
per share
Dividend
(1) Data adjusted for free allotment of
shares.
Pay-out rate 44.8% 38.6% 38.4% 38.0% 41.9% 34.6%
47 INVESTORS PRESENTATION APRIL 2021SCHEDULE AND CONTACTS 48 INVESTORS PRESENTATION APRIL 2021
SCHEDULE
THURSDAY MAY 6, 2021(1)
Disclosure of sales at the end of the 3rd quarter 2020-2021
MONDAY AUGUST 2, 2021(1)
Disclosure of sales for fiscal year 2020-2021
WEDNESDAY OCTOBER 13, 2021(1)
Disclosure of results for fiscal year 2020-2021
FRIDAY DECEMBER 10, 2021
Annual General Meeting of Shareholders
(1) Disclosure after trading on the Paris Stock Market
Dates provided as an indication only and liable to be changed
49 INVESTORS PRESENTATION APRIL 2021CONTACTS
For any further information:
Olivier FALUT Valérie MONSÉRAT
Chief Financial Officer Head of Financial Communication and Investor Relations
olivier.falut@vilmorincie.com valerie.monserat@vilmorincie.com
Vilmorin & Cie
Head Office: 4 quai de la Mégisserie – F-75001 PARIS
Postal address: CS 20001 Saint-Beauzire – F-63360 GERZAT
Tel: +33 473 634 485 - Fax: +33 473 634 180
Consult all the financial information on the website:
www.vilmorincie.com
50 INVESTORS PRESENTATION APRIL 2021GLOSSARY 51 INVESTORS PRESENTATION APRIL 2021
GLOSSARY Like-for-like data: Like-for-like data is data that is restated for constant scope and currency translation. Therefore, financial data for 2019-2020 is restated with the average rate for fiscal year 2020-2021, and any other changes to the scope, in order to be comparable with data for fiscal year 2020-2021. Variations in the consolidated scope come from the disposal of activities run by the Garden Products division in Turkey, finalized at the end of fiscal year 2019-2020. Current data: Current data is data expressed at the historical currency exchange rate for the period, and without adjustment for any changes in scope. EBITDA: The EBITDA is defined as the operating result to which are added any provisions for depreciation, amortization and impairment. 52 INVESTORS PRESENTATION APRIL 2021
GLOSSARY Research investment: Research investment corresponds to gross research expenditure before recording as fixed assets any research costs and research tax relief. Financial indebtedness: Financial indebtedness corresponds to the financial debts less cash and cash equivalents. Current operating margin: The current operating margin is defined as the accounting operating margin restated for any impairment and reorganization costs. 53 INVESTORS PRESENTATION APRIL 2021
APPENDICES 54 INVESTORS PRESENTATION APRIL 2021
APPENDICES GOVERNANCE 55 INVESTORS PRESENTATION APRIL 2021
GOVERNANCE
THE BOARD OF DIRECTORS
Co-option of Géraldine BÖRTLEIN as Independent Board Member,
to replace Claude RAYNAUD(1).
▪ Graduate of Centrale Paris, with a specialization in bioengineering, and a PhD in biochemistry-pharmacology
▪ Co-founder and co-manager of Alcimed(2) since 1993
Experience of almost 30 years in sectors of high technology
▪ Vice-Chairman of the Association des Conseils en Innovation (Association for Consultancy in Innovation)
Composition of the Board of Directors on March 3, 2021
Sébastien Philippe Géraldine Annick Marie-Yvonne Séverine Benoist Pascal
VIDAL BLATEYRON BÖRTLEIN BRUNIER CHARLEMAGNE DARSONVILLE DE SAINT LAGER VIGUIER
Chairman and CEO Board Member Independent Board Board Member Independent Board Board Member Board Member Board Member
Member Member representing Bpifrance
Investissement
(1) By the Board of Directors at their meeting of March 3, 2021, after being informed by Claude RAYNAUD of his desire to resign from his mandate as Board Member.
(2) Consultancy in innovation and development of new markets, founded in 1993, and which now has 200 employees.
56 INVESTORS PRESENTATION APRIL 2021APPENDICES CONTEXT OF THE DIFFERENT MARKETS 57 INVESTORS PRESENTATION APRIL 2021
CONTEXT OF THE DIFFERENT MARKETS
FIELD SEED TRENDS
Price of wheat. Price of corn.
Rouen: 214 €/tn Bordeaux: 199 €/t
Chicago: 236 $/tn Chicago: 194 $/t
January 2021 January 2021
€/t $/t €/t $/t
350
260 350
260
300
300
220 220
250 250
180 180
200 200
140 140
150 150
100 100 100 100
15/01/2014
15/07/2014
19/01/2015
08/07/2015
10/01/2016
17/08/2016
07/02/2017
10/08/2017
10/01/2018
16/07/2018
15/01/2019
15/07/2019
14/01/2020
15/07/2020
15/01/2021
15/01/2014
15/07/2014
15/01/2015
15/07/2015
15/01/2016
15/07/2016
15/01/2017
15/07/2017
15/01/2018
15/07/2018
15/01/2019
15/07/2019
15/01/2020
15/07/2020
15/01/2021
Rendu Rouen (€/t) Chicago ($/t)
Rendu Bordeaux (€/t) Chicago ($/t)
Sources: Stratégie Grains, internal – January 2021.
58 INVESTORS PRESENTATION APRIL 2021CONTEXT OF THE DIFFERENT MARKETS
FIELD SEED TRENDS
Corn acreage
Brazil
United States Greater Europe*
≈ Safra acreage
≈ Acreage ↘ Acreage
↗ Safrinha acreage
Sunflower acreage
Greater Europe*
↗ Acreage
* Main countries in which Vilmorin & Cie is present.
Sources: USDA, internal - February 2021.
59 INVESTORS PRESENTATION APRIL 2021APPENDICES KEY FINANCIAL DATA 60 INVESTORS PRESENTATION APRIL 2021
APPENDICES KEY FINANCIAL DATA FOR THE 1ST SEMESTER 2020-2021 61 INVESTORS PRESENTATION APRIL 2021
RESULTS FOR THE 1ST SEMESTER 2020-2021
CONSOLIDATED SALES ON DECEMBER 31, 2020
4%
SALES
PER DIVISION 48%
(revenue from ordinary activities) 48%
Vegetable Seeds
Field Seeds
Garden Products
and Holdings
SALES
SALES
PER GEOGRAPHICAL ZONE
PER PRODUCT (sales of products)
(sales of products) 5%
5%
Vegetable Seeds 12%
17%
Cereals (corn, wheat/barley)
9%
Europe
50% Oil and protein rape & sunflower
Americas
49%
Other field seeds Asia/Oceania
Africa/Middle East
Other products
23% 30%
62 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1ST SEMESTER 2020-2021
SALES* PER ACTIVITY
In M€
SALES* OF SALES* OF
VEGETABLE SEEDS FILED SEEDS
+11.1%
+1.9%
+7.9% +19.1%
* Revenue from ordinary activities * Revenue from ordinary activities
after application of IFRS 11 (i.e. excluding AgReliant)
63 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1ST SEMESTER 2020-2021
INCOME STATEMENT
Variation
In M€ 12.31.2019 12.31.2020
with current data
Sales 490.8 525.7 +7.1%
Commercial margin 255.3 279.9 +24.6 M€
Commercial margin rate 52.0% 53.2% +1.2 pt
Operating income -46.7 -5.5 +41.2 M€
Operating margin rate -9.5% -1.0% +8.5 pts
Financial income -23.0 -27.3 -4.3 M€
Income from associated companies -22.4 -12.0 +10.4 M€
Income taxes 28.7 12.9 -15.8 M€
Net income -63.4 -31.9 +31.5 M€
Group share of net income -61.9 -31.9 +30.0 M€
64 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1ST SEMESTER 2020-2021
INCOME STATEMENT - OPERATING CHARGES
Variation
In M€ 12.31.2019 12.31.2020
with current data
Marketing and sales -100.4 -89.5 -10.9%
Research and development -107.8 -104.7 -2.9%
Administration and other charges -97.7 -90.5 -7.4%
Impairments 0.1 -0.1 -0.2 M€
Reorganization -0.9 -2.8 +(1.9) M€
Disposal of assets 4.7 (CG) 2.2 (CG) -2.5 M€
Net operating charges -302.0 -285.4 -(16.6) M€
CG = Capital Gains
65 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1ST SEMESTER 2020-2021
KEY FIGURES PER ACTIVITY (CONTRIBUTION TO CONSOLIDATED RESULTS)
Sales* Operating income Net income
In M€ 12.31.2019 12.31.2020 12.31.2019 12.31.2020 12.31.2019 12.31.2020
Vegetable Seeds 248.4 253.1 -17.0 -1.7 -12.4 -7.1
Field Seeds 228.9 254.2 -18.4 3.9 -38.5 -13.2
Garden Products & Holdings 13.5 18.4 -11.3 -7.7 -12.5 -11.6
Consolidated 490.8 525.7 -46.7 -5.5 -63.4 -31.9
* Revenue from ordinary activities
66 INVESTORS PRESENTATION APRIL 2021RESULTS FOR THE 1ST SEMESTER 2020-2021
BALANCE SHEET STRUCTURE
1,886
1,836 Net fixed assets
In M€
Net working capital needs
724* 629
31.12.2019 31.12.2020
*724 m€ incl. 2.2 m€ from net impact of IFRS 5
1,217
1,117
Equity
78 53 90 Provision
57
Net deferred taxes
1,262 1,201 Net indebtedness
31.12.2019
12.31.2019 31.12.2020
12.31.2020
Total balance sheet 2,609 2,465
including cash and bank 208 228
67 INVESTORS PRESENTATION APRIL 2021APPENDICES KEY FINANCIAL DATA FOR FISCAL YEAR 2019-2020 68 INVESTORS PRESENTATION APRIL 2021
RESULTS FOR FISCAL YEAR 2019-2020
INCOME STATEMENT
Variation
2019-2020
2018-2019
In M€ 2018-2019 2019-2020 /
restated IFRS 16
2018-2019
restated
Sales 1 390.7 1 390.7 1435.2 +3.2%
Sales margin 678.7 678.7 714.2 +35.5 M€
Sales margin rate 48.8% 48.8% 49.8% +1.0 pt
Operating income 111.0 114.6 109.8 -4.8 M€
Operating margin rate 8.0% 8.2% 7.7% -0.5 pt
Current operating margin rate 8.4% 8.6% 7.8% -0.8 pt
Income from associated companies 26.0 26.0 17.9 -8.1 M€
Financial income -45.0 -48.4 -53.3 -4.9 M€
Income taxes -14.1 -14.2 -6.9 +7.3 M€
Net income 77.9 78.0 67.5 -10.5 M€
Net income group share 73.9 74.0 66.2 -7.8 M€
69 INVESTORS PRESENTATION APRIL 2021RESULTS FOR FISCAL YEAR 2019-2020
KEY FIGURES FOR EACH ACTIVITY’S CONTRIBUTION TO CONSOLIDATED SALES
Sales* Operating income Net income
2018-2019 2018-2019 2018-2019
In M€ 2018-2019 restated 2019-2020 2018-2019 restated 2019-2020 2018-2019 restated 2019-2020
IFRS 16 IFRS 16 IFRS 16
Vegetable Seeds 687.5 687.5 705.5 102.7 104.3 102.8 71.7 71.6 69.0
Field Seeds 649.9 649.9 677.0 27.4 28.9 19.5 32.8 32.8 26.1
Garden Products and 53.3 53.3 52.7 -19.1 -18.6 -12.5 -26.6 -26.4 -27.6
Holdings
Consolidated 1 390.7 1390.7 1435.2 111.0 114.6 109.8 77.9 78.0 67.5
* Revenue from ordinary activities
70 INVESTORS PRESENTATION APRIL 2021RESULTS FOR FISCAL YEAR 2019-2020
FREE CASH FLOW
In M€ 2018-2019 2019-2020
Net indebtedness at the beginning of the FY 766 912
EBITDA 322 348
Variation of working capital needs -2 -29
Other operating items -61 -27
Net industrial investments -17 -60
Activated development costs -171 -182
Operating cash-flow 70 50
Net financial investments -151 -3
Capital and other equity contributions -3 0
Dividends -24 -26
Net financial charges -30 -36
Free cash-flow -138 -16
Other restatements (IFRS/Currency, etc.) -8 -7
Net indebtedness at the end of the FY 912 934
71 INVESTORS PRESENTATION APRIL 2021RESULTS FOR FISCAL YEAR 2019-2020
BALANCE SHEET STRUCTURE
06.30.2019 06.30.2019 06.30.2020
restated for IFRS 16
In M€
Gearing 76%
Leverage 2.7
Total balance sheet 2 388 2 384 2 319
of which cash 249 249 235
72 INVESTORS PRESENTATION APRIL 2021APPENDICES VILMORIN & CIE ORGANIZATION CHART 73 INVESTORS PRESENTATION APRIL 2021
ORGANIZATION CHART
FIELD SEEDS VEGETABLE SEEDS
Limagrain Europe HM.CLAUSE
AgReliant (corn, soybean)
Limagrain Asia-Pacific
Hazera
Limagrain Cereal Seeds (wheat)
Limagrain South America Vilmorin-Mikado
Limagrain Africa
74 INVESTORS PRESENTATION APRIL 2021THANK YOU
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
www.vilmorincie.com
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