文献-INVESTORS PRESENTATION March, 9th 2015 - Vilmorin

INVESTORSPRESENTATIONMarch,9th2015DISCLAIMERSomeofthestatementscontainedinthisdocumentmaybeforward-lookingstatementsconcerningVilmorin&CieSAsfinancialposition,results,businesses,strategyorprojects.Vilmorin&CieSAconsidersthatsuchstatementsarebasedonreasonableassumptionsbutcannotanddoesnotgiveanyassurancethattheGroupsfutureperformancewillbeconsistentwiththosestatements.Actualresultscoulddifferfromthosecurrentlyanticipatedinsuchstatementsduetoacertainnumberofinherentrisksanduncertainties,mostofwhicharebeyondVilmorin&CieSAscontrol,suchasthosedescribedinthedocumentsfiledortobefiledbyVilmorin&CieSAwiththeFrenchsecuritiesregulator(Autoritdesmarchsfinanciers)andmadeavailablefordownloadingfromtheC2March,9th2015AGENDAVILMORIN&CIEATAGLANCEVILMORIN&CIEGROWTHSTRATEGYRESULTSFORTHE1STSEMESTER2014-2015OUTLOOK2014-2015VILMORIN&CIEONTHESTOCKEXCHANGESCHEDULEANDCONTACTSAPPENDICESs.04s.10s.21s.40s.46s.49s.52VILMORIN&CIEATAGLANCEVILMORIN&CIEATAGLANCEVILMORIN&CIE,4thLARGESTSEEDSCOMPANYINTHEWORLDFourthlargestseedscompanyintheworldwithleadingpositionsonitscoreactivitiesinNEurope1forwheatseedsworldwideN2forvegetableseedsNinNorth3AmericaforcornseedsinNEurope4forcornseedsPureplayerbuiltuponhistoricalexpertiseinbotanysince1743andonthebasisofrealproximitywiththeagriculturalworldAlong-termvisionofthedevelopment,strengthenedbytheconsistentsupportofitsreferenceshareholder,Limagrain,aninternationalagriculturalcooperativegroup5March,9th2015VILMORIN&CIEATAGLANCEAFULLCONTROLOFALLTHESTAGESINTHESEEDSBUSINESSANALYZINGNEEDSCOLLECTINGCREATINGNEWGENETICSEEDSRESOURCESA7TO10YEARSCYCLEPRODUCINGSEEDSMORETHAN10000PLANTVARIETIESCOLLECTEDOVER270YEARSDISTRIBUTINGANDSELLINGSEEDSAROUND500VARIETIESLAUNCHEDPERYEAR6March,9th2015VILMORIN&CIEATAGLANCETRACKRECORDOVER10YEARSLinkSeedSouthAfricaEurekaSeedUnitedStatesInM1600,0BrasmilhoSementesGuerraBrazilBiscoBioSciencesIndia1472SeedCoAfrica(*0IntegrationofEuropeanandUSfieldseedsSuTarimTurkey1192,01338,0SeedAsiaThailandCenturySeedsIndia120Shamrock1200,0UnitedStatesand1000,0HazeraGeneticsIsral800,0MikadoJapan939,0897,01064,0BSF/Genesis/Trigen/1002,0TrioResearchUSAMesaMaizeUSA91,029.380,699,484,1Mexico10080Netincome(Groupshare)CapitalgainsfromsaleofminoritystakesinChina600,0488,0488,0494,043,854,844,353,054,160Sales400,0200,030,232,34020VegetableseedsacquisitionFieldseedsacquisition0,00acquisitionsexamplesarenotexhaustive(*)Shareofprofitofassociates7March,9th2015VILMORIN&CIEATAGLANCEABUSINESSORGANIZATIONCLOSETOTHEMARKETS:KEYFORSUCCESSVEGETABLESEEDSFIELDSEEDSVEGETABLEGROWERS4BUSINESSUNITSKeyleadingbrands:FARMERS6BUSINESSUNITSKeyleadingbrands:Gardenproductsbusinessformarketgardeners1BUSINESSUNITKeyleadingbrand:8March,9th2015VILMORIN&CIEATAGLANCEALONGTERMREFERENCESHAREHOLDERGroupeLimagrain:BREAKDOWNOFTHECAPITALONJANUARY31st2015Individualshareholders6,8%InternationalagriculturalcooperativeGroupeLimagrain*19,5%Investors(ofwhicharound42%internationallySpecializedinseedsandcerealproducts(ingredientsandbakeryproducts)73,7%based:USA,UK,Scandinavia,Germany)Stablecorporategovernanceguaranteeing:LongtermstrategyAperfectknowledgeofthebusiness*ofwhichBPIFranceasastrategicshareholderofLimagrainSources:EuroclearandEuronext9March,9th2015VILMORIN&CIEGROWTHSTRATEGYVILMORIN&CIEGROWTHSTRATEGY1/MARKETFORSEEDS:ASUSTAINABLEGROWTHIncreaseinseedsdemandGrowthintheworldpopulation(9bnin2050)ImprovementinthestandardsoflivingIncreaseintheuseofbiofuelsFieldSeedsWORLDMARKETFORCOMMERCIALSEEDS(2013)Vegetableseeds(Conventionalseeds)IncreaseintheuseofcommercialseedsEvergreateruseofgeneticallymodified(“GM”)seedsworldwideForthefirsttimein2013thevalueofGMseedsworldwideexceedconventionalseedsGMseedsFieldSeedsConventionalseedsMARKETVALUE2013:$39.4BN.GLOBALCAGR:+9%/YEAR(CAGRbetween2008and2013)Sources:PhilipsMcDougall.2014andISAAA201411March,9th20151701601481341141251029081685953404428112VILMORIN&CIEGROWTHSTRATEGY1/MARKETFORSEEDS:GMOCONTINUINGTOGROWIN2014Worldmarketacreage181.5millionhectares(around10%ofarableland),+4%/2013,grownby18millionfarmersin28countriesGMO:ACREAGEPERCOUNTRY1801601401201008060402001751821996199719981999200020012002200320042005200620072008200920102011201220132014OthersChinaIndiaCanadaArgentinaBrazilUSAWorldmarketvalue$20.1billionin2013(i.e.51%oftheworldmarketforseeds),+9%/2012Sources:ISAAA2014and2015.PhilipsMcDougall201412March,9th2015VILMORIN&CIEGROWTHSTRATEGY1/MARKETFORSEEDS:HIGHBARRIERSTOENTRYAconcentratedcompetitiveenvironmentHighbarrierstoentry:WidthanddepthofthegeneticresourcesR&Dinvestment(conventionalbreedingandbiotechnologies)InternationalcoverageWORLDWIDECOMPETITIVEENVIRONMENTFORSEEDSMonsantoDupontPioneerD63158262Others21%MonsantoSyngentaVilmorin&CieDowKWSBayer141912271178974240345%16%DupontPioneerDLFSakataTakii0349345294200040006000800010000Bayer4%2%3%3%6%SyngentaVilmorin&CieSeedscompaniesSalesinmillionsofEuros2013Dow(MonsantoandVilmorin&Cie:sales2013-2014)KWSFieldseedsVegetableseedsSources:companypublicationsandinternal.201413March,9th2015VILMORIN&CIEGROWTHSTRATEGY2/ACCELERATINGTHEGROWTHAnambitiousstrategy:INNOVATIONThreestrategicpriorities:TARGETEDPOLICYOFEXTERNALGROWTHINTERNATIONALIZATIONVEGETABLESEEDSCORNSEEDSWHEATSEEDSREINFORCEWORLDLEADERSHIPBECOMEAGLOBALACTORBECOMETHEWORLDREFERENCE14March,9th2015VILMORIN&CIEGROWTHSTRATEGY3/VEGETABLESEEDSDIVISIONPROFILEAverystrongcompetitivepositionKEYFIGURES2013-2014addressingworldwidevegetablegrowersandfoodprocessorsAnextremelydiversifiedproductline-upwithmorethan30species(tomato,carrot,melon,pepper,beans,etc)N2INTHEWORLD563MSALES29COUNTRIESWITHLOCATIONS15.9%OPERATINGMARGINSALESOFVEGETABLESEEDSPERCROP.2013-2014SALESOFVEGETABLESEEDSPERGEOGRAPHICALAREA.2013-2014OnionOthersAsia/Oceania17%EuropeCauliflowerTomato238%Bean17%Sweetandhotpepper3Melon1Africa/MiddleEastCarrot128%Americas123:competitivepositions15March,9th2015VILMORIN&CIEGROWTHSTRATEGY3/VEGETABLESEEDS.STRATEGYReinforceworldleadershipMakefulluseofthevirtuouscircleofinnovationandproximitytocontinuetowinmarketsharesClosetargetedoperationsforacquisitionsorpartnershipstostrengthenpositionsoncertaincropsand/orcertaingeographicalzones(particularlyinAsia)LATESTACQUISITIONS:CAMPBELLSSEEDS(September2012)TomatoandpepperUnitedStatesSales:morethan5M$CENTURYSEEDS(October2012)10localcropsIndiaSales:4MSHAMROCKSEED(October2013)Lettuce,greens,melon,watermelon,pepperUnitedStatesSales:20M$TROPDICORP(closingsubjecttoapproval)Bittergourd,pumpkin,waxgourdVietnamSales:6M$16March,9th2015VILMORIN&CIEGROWTHSTRATEGY4/FIELDSEEDSDIVISIONPROFILEOneofthetopplayersinstrategicKEYFIGURES2013-2014cropstargetingfarmers4strategiccrops:corn,wheat,rapeseed,sunflowerN1INEUROPEFORWHEATSEEDSN3INNORTHAMERICAAndN4INEUROPEFORCORNSEEDS29COUNTRIESWITHLOCATIONS856MSALES8.5%OPERATINGMARGINSALESOFFIELDSEEDSPERSPECIE.2013-2014SALESOFFIELDSEEDSPERGEOGRAPHICALAREA.2013-2014OtherfieldseedsRapeseedCereals(corn,wheat,barley)Asia/Oceania4%2%Africa/MiddleEastFeedgrainsAmericas34%EuropeSunflower60%17March,9th2015VILMORIN&CIEGROWTHSTRATEGY4/CORNSEEDS.STRATEGYCornseeds:becomeaglobalactorWorldwidecornsurfacesin2013:187MhaINTERNATIONALIZEACTIVITIESfurtherafieldfromEuropeanandNorthAmericanactivitiesLATESTACQUISITIONS:DEVELOPPROPRIETARYTECHNOLOGIESBISCOBIO:SCIENCES(March2013)Corn/riceIndiaSales:9MSEEDCO(Minoritystake.2014)#1AfricanseedscompanySales:111M$5factories&6researchstationsinsoutheastAfricaSEEDASIA(March2014)HybridtropicalcornThailandSales:9M$TechnologicalstrategicpartnershipbetweenVilmorin&CieandKWSFirstsalesofGMtraitsforcornseedsexpectedwithin2/3years18March,9th2015VILMORIN&CIEGROWTHSTRATEGY4/WHEAT/STRATEGYWheatseeds:becometheworldreferenceBecometheworldreferenceofthefirstworldwidecropandcontributetotheconversionofalowperformancefarmseedmarketwithlittlevalue,toacommercialseedmarketintegratingnewhighyieldtechnologiesConsolidatepositionofNo.1inEuropeGraduallyextendthispositiontoothermajorwheatmarketsNorthAmerica(LimagrainCerealSeeds)SouthAmericaAustraliaAsiaDevelopstrongpartnershipsinternationallyAGTArcadiaBioSciencesBorealPlantBreedingCanterraSeeds19March,9th2015VILMORIN&CIEGROWTHSTRATEGY5/R&D:INNOVATETOINSURETOMORROWSGROWTHMaintainregularinvestmentinresearch(breedingandbiotechnologies)andbroadenthepartnerships2013/201413,1%80814,7%82315,4%88915,2%1014115714,0%129114,2%132814,6%MORETHAN19%INVESTEDINBIOTECHNOLOGIES105121137154162182194260MILLIONRESEARCHINVESTMENTSalesofseeds2007-082008-092009-102010-112011-122012-13ChiffredaffairessemencesEffortInvestmentderechercheinresearchEffortInvestmentderechercheinresearch/chiffre/Salesdaffairesofseedssemences2013-14INTEGRATINGPARTNERSHIPS*ofwhich194mresearchinvestmentswithoutintegratingpartnerships20March,9th2015RESULTSFORTHE1STSEMESTER2014-2015KEYPOINTSFirstapplicationofthestandardsIFRS10,IFRS11,IFRS12,andIFRIC21Increaseinsales:+3.1%*ExcellentperformancesbytheVegetableseedsactivity:+8%*ModeratedropintheFieldseedsactivity,inacontextwheremarketsareonhold:-2.2%*Markeddecreaseintheresultsforthefirstsemester,withanetlossinthegroupshareof55.3millionEuros,duetothefieldseedsbusinessandnon-recurringitemsGlobalgrowthobjectivefor2014-2015maintained*Onalike-for-likebasis22March,9th2015aot-13sept.-13oct.-13nov.-13dc.-13janv.-14fvr.-14mars-14avr.-14mai-14juin-14juil.-14aot-14sept.-14oct.-14nov.-14dc.-14janv.-15aot-13sept.-13oct.-13nov.-13dc.-13janv.-14fvr.-14mars-14avr.-14mai-14juin-14juil.-14aot-14sept.-14oct.-14nov.-14dc.-14janv.-15HIGHLIGHTSOFTHE1STSEMESTER2014-2015MARKETCONTEXTFieldseedsPersistentlyhighvolatilityinthepricesofagriculturalrawmaterials250200150Cornprices.Bordeaux:147/tn.Wheatprices.Rouen:189/tn.January2015WheatCorn600500400300200Cornandsoybeanprices.ChicagoCorn:142$/tSoybean:364$/tWheat:196$/tJanuary2015SoybeanWheat10050BlrenduRouenMasrenduBordeaux1000BlUSChicagoMasUSChicagoSojaChicagoCornSources:FranceAgriMer,IGC,Ladpche.February2015VegetableseedsConfirmationofthegloballyfavorablemarkettrendsASEEDSMARKETWITHCONSTANT,LASTINGGROWTH23March,9th2015HIGHLIGHTSOFTHE1STSEMESTER2014-2015DEPLOYMENTOFSTRATEGICPRIORITIESVegetableseedsReinforceworldleadershipCONTINUETOGAINMARKETSHARESINNOVATIONANDPROXIMITYTOMARKETSContinuinginvestmentinresearchinstallationsBrurimresearchcenter.IsraelSTRENGTHENPOSITIONSFORCERTAINCROPSANDGEOGRAPHICALZONESTARGETEDEXTERNALGROWTHOPERATIONSPertinenceofnewsitesandacquisitionsmadeinrecentyearsConfirmationofthesuccessfulintegrationofrecentlyacquiredcompanies:Shamrock(UnitedStates),CenturySeeds(India),CampbellsSeeds(UnitedStates).24March,9th2015HIGHLIGHTSOFTHE1STSEMESTER2014-2015DEPLOYMENTOFSTRATEGICPRIORITIESFieldseedsBecomeaglobalpayerincornseedsINTERNATIONALIZATIONOFPOSITIONSbeyondEuropeandNorthAmericaCONTINUETOSTRUCTUREANDDEPLOYORGANIZATIONStructuringorganizationintermsofresearch,productionandsalesdevelopment.Increasedcoordinationofcross-cuttingfunctions(research,strategicmarketing).Sharinganetworkofgeneticresourcesintropicalcornbetweenthedifferentareasconcerned:Brazil,AsiaandAfrica.25March,9th2015HIGHLIGHTSOFTHE1STSEMESTER2014-2015FIELDSEEDS.SEEDCO.ZIMBABWEConsolidationmethod:Sept.30,2014:Vilmorin&Cieheldabout21%ofSeedCoscapitalstockDecember2014:financialoptionexercisedallowingVilmorin&Cietohold30.5%ofSeedCoscapitalstockConsolidation,usingtheequitymethod(EM),oftheproportionofSeedCosincome,onthebasisofthefinancialstatementsforthefirstsemesteruptoSeptember30,2014UpdateonactivityonSeptember30,2014:Globalsalesof$16million,slightlydownforthefirstsemester-Reductioninwintercereals-Increaseincornvolumes,withhighdemandinZimbabwe,inZambia,inMalawi,etc.Significantcontractioninoperatingandfinancialcharges-Abigreductioninthestructurallosscomparedwiththe1stsemester2013-2014CollaborationagreementswithSeedCo:Partnershiptopromoteaccesstoglobalandworldwidetechnologiesandmethods26March,9th2015HIGHLIGHTSOFTHE1STSEMESTER2014-2015GARDENPRODUCTS.SUTTONS.UNITEDKINGDOMOperationachievedDisposalofSuttonsinDecember2014,throughaManagementBuy-Out(MBO)withthesupportofaregionaldevelopmentfundandassistancefromVilmorin&CieSuttons.ProfileCreation:1806AcquisitionbyVilmorin&Cie:1994Activity:productionanddistributionofgardenproducts(vegetableandflowerseeds,youngplants,bulbs,gardenequipment),throughdirectsalesanddistancetrading(e-commerce,mailorder)Headcount:almost110Sales2013-2014:14.8million(-1.5%vs2012-2013)Netincome2013-2014:-2.4million(-60%vs2012-2013)27March,9th2015HIGHLIGHTSOFTHE1STSEMESTER2014-2015GARDENPRODUCTS.SUTTONS.UNITEDKINGDOMFinancialimpactofthedisposalofSuttonsNegativeimpactof2.1millionontheoperatingincomeforthefirstsemesterincluding:-capitalgainsonthedisposalofthesecurities,-non-recurringcostsrelatedtothetransaction,-andaguaranteeprovisionwithareservecoveringpensionplancommitments.Negativefinancialincomeimpactforthefirstsemesterof1.1million-correspondingtotherenunciationofrightstoafinancialcurrentaccount.28March,9th2015averagecl