Sustainable development

How is sustainable development

integrated into the company?

At Bonduelle, sustainable development

policies, formalised in 2002, include all

sectors of the company, from the upstream

agricultural side to the downstream industrial

and commercial side. Our action is currently

defi ned by four areas:

• People.

• Agricultural Production.

• Natural Resources.

• Quality / Nutrition.

Information concerning these four areas

is communicated by the production and

commercial sites, and studied during our

steering committee. It is signifi cant that this

committee brings together complementary

areas of expertise - in agronomy, energy

resources, water, supervision and management,

human resources, communication - all of

which are working towards the same objective:

to balance economic and social progress with

the preservation of the environment.

What are the challenges for

Bonduelle?

There are of course several kinds of

challenges. For fi ve years, through the

establishment within the company of

performance indicators in the four priority

areas, we have been measuring the progress

achieved: in the area of natural resources,

we have reduced our energy consumption

by about 10% (electricity and natural gas)

As with any consumer of agricultural raw materials, Bonduelle must adapt to the weather conditions, which can be diffi cult. The 2007 season will have been marked in Western Europe by very hot weather in April and a lack of sun and a high level of rain in May, June and July. The impacts of the vagaries of the weather and disruptions to sowing and harvests have been minimised by the work carried out on a daily basis by engineers of Bonduelle’s agronomy department. In addition, the geographical distribution of the group’s production zones, from Portugal to Russia, acts as a safety net in relation to this.

To ensure healthy

vegetables grown in an

environmentally-friendly

way, Bonduelle is

reinforcing

its supply risk

prevention approach

G R O U P E

Bonduelle supplycharter

2 0 0 7

Rue Nicolas Appert – BP 3017359653 Villeneuve-d’Ascq Cedex – FranceTél. : +33 (0)3 20 43 60 60Fax : +33 (0)3 20 43 60 00www.bonduelle.com

Christophe BonduelleChairman and general manager

Pierre DeloffreDeputy general manager

Dear shareholders2006 / 2007 will have seen us return to growth both in terms of sales and profi tability, developing investment in research & development and marketing, all despite an unfavourable environment (unfavourable weather and exchange rates, raw material price rises).This good health has enabled us to lay the foundations for a new conquest, North America, essential for our globalisation and the optimum distribution of the group’s risks.

GrowthEuropean Union Our traditional areas have saw dynamic growth once more after two diffi cult years. Indeed, our turnover in the EU progressed by €45 million (4%), evenly distributed: 5% in canned, +3% in frozen and 4% in fresh product sectors.

Eastern EuropeThis zone was behind over 20% of the group’s growth despite the unfavourable exchange rates and strong competition in sweetcorn. The dynamism of activity outside the European Union justifi es our strategic decisions. Promising starts to the launches of gherkin, olive and tomato products, plus the recent excellent performance of our factory in Krasnodar (Russia) and the strong awareness of our brand in these countries, should help us to maintain double-digit growth there.

Jean-Bernard Bonduelle, Director of Public Relations, responsible for sustainable development.

and our water consumption by 8%.

In the social area, we have also improved

our performances this year since the rate of

work-related accidents has been reduced by

over 20%. These results are also the fruit

of action by teams on the ground which

have built the plans which have delivered

the progress.

Tomorrow, in the face of new structural

challenges - price increases in raw materials

and energy - the group’s sustainable

development policy will be a major

strength.

Is this “sustainable development”

concern embedded in the company’s

culture?

An important feature of Bonduelle is that it

is involved in a primary processing industry,

i.e. the products which we sell come directly

from nature. It has therefore always been very

important for us to look after the environment

which is also our sole source of raw materials.

Our supply charter is an illustration of our

commitment in this area. A pioneer in this area,

for many years we have developed a policy of

formalising our relationships with the farmers

who produce for Bonduelle. We thus created

our fi rst charter over 10 years ago, defi ning the

rules governing the production of vegetables.

Since the fi rst version

of this charter, we

have included

the preservation

of the environment as a priority objective.

With the fourth version, launched in July,

Bonduelle continues its commitment, in order

to produce vegetables whilst respecting and

preserving natural resources. This new version

formalises changes in regulations, stresses the

analysis and evaluation of risks and re-focuses

on the product.

It sets out eight stages which are defi ned in line

with production logic, from selecting land to

factory supply.

Each of these stages is analysed for fi ve risks:

physical, regulatory, microbiological, chemical

and product quality; this analysis is carried

out both by the producer and by Bonduelle’s

agronomy department.

The supply charter, which has become a

risk prevention tool, also contains a list of

qualitative references which defi nes the rules

and standards to guarantee the quality and

safety of Bonduelle vegetables. As in the

previous edition, the 2007 charter includes

an audit guide which enables the farmer to

permanently assess himself thus facilitating his

compliance with the regulations.

INTERVIEW

POLANDMore and more practical!A technological innovation for the benefi t of consumers… the new easy-open (peal-back) device developed by Bonduelle Poland is a strong marketing tool on the tinned food market and should help win over the children… and their parents.

Like all central and eastern European countries, Poland has strong development potential in the area of processed vegetables, because lifestyles are becoming increasingly similar to those of western Europeans who consume a larger portion of processed products.

SPAINBonduelle Spain is innovating and offering new products, with a view to consolidating the market share of its Frudesa brand. A new “premium” brand has two products: spinach and sweet peas, carefully selected to satisfy the taste-buds of the more demanding consumers. Another new product in the traditional Frudesa range is a spinach with cheese recipe, which takes fi ve minutes to prepare in a frying pan. The packaging of these new products gives the consumer practical information about the food (amounts of vitamins, fi bre, minerals etc) an illustration of the group’s commitment to nutrition.

Development of the tinned products market in Poland

Market share (%)

Year 2004 2005 2006

Tinned vegetables 5,1 5,2 6,7

Food for thought 2007 study.

Nov

em

ber 2007

1 6number

North AmericaThe acquisition in July 2006 of 23% of Aliments Carrière, Canadian leader in the tinned and frozen vegetables sector, allowed us, over one year, to appreciate the quality of the Canadian teams and what motivated their desire for a merger with the Bonduelle Group. It was therefore very natural for a total acquisition, which signifi cantly increases earnings, to be implemented in July 2007.

Profitability All of the group’s results are up: operational profi tability at €84 million, up 24%, boosted by a rise in the value of stocks, operating income before exceptionals up 2% to €72 million, and net profi t of €52 million, up 32%, benefi ting, in addition to the rise in the value of stocks, from the equity accounting of the Carrière result to the level of our minority stake for almost €4 million.With the total consolidation of Carrière from 1 July 2007, these good results mean we can look to future years with peace of mind, despite the sharp rise in the structural prices of food commodities.Despite the fact that our supplies are now global, it is inevitable that we will have to proportionately refl ect this infl ation in our sale prices.We can therefore feel confi dent about the group’s capacity to develop and improve performances. Its fundamentals are extremely healthy, and its product base more buoyant than ever. The reputation of the Louis Bonduelle Foundation, which is expanding throughout Europe and making its contribution to the fi ght against obesity through a more balanced diet, is an excellent illustration of this.

FOCUS

Note on seasons

N E W P R O D U C T S

Sha reholders ’ d i a ry

07/11/2007 • Turnover for 1st quarter 2007/2008

06/12/2007 • Combined General Meeting

07/02/2008 • Turnover for 1st half 2007/2008

28/02/2008 • Results for 1st half 2007/2008

07/05/2008 • Turnover for 3rd quarter 2007/2008

07/08/2008 • Annual turnover 2007/2008

09/10/2008 • Annual results 2007/2008

04/12/2008 • Combined General Meeting

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100

110

120

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juil. 06 août 06 sept. 06 oct. 06 nov. 06 déc. 06 jan. 07 fév. 07 mars 07 avril 07 mai 07 juin 07

Bonduelle

SFB 120

CAC 40

Performance of the Bonduelle share in relation to the CAC 40 and SBF 120 indices (base reference 100 July 2006)

€51,8million net income,

group share

€1 253billion turnover

€84million

operating income

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Letterto shareholders

july 06 aug. 06 sept. 06 oct. 06 nov. 06 dec. 06 jan. 07 feb. 07 march 07 april 07 may 07 june 07

Nutrition

RUSSIA « Think global, act local » is the company’s philosophy. Bonduelle adapts its products to the

demands of national markets, using its agri-industrial know-how. This is how new tins of black olives, gherkins and tomatoes were launched in Russia, where consumption of these products is very signifi cant. This extension of the Bonduelle tins range should help the group to strengthen its position on this market further.

With the acquisition of the Aliments Carrière group, Bonduelle, which dominates the processed vegetable market in Europe (all technologies taken into account), is demonstrating its desire to increase its global leadership.The Canadian company, integrated into Bonduelle as the new subsidiary “Bonduelle Amérique du Nord”, has profoundly changed the company’s centre of gravity. With seven factories in Canada, 979 new employees and an annual turnover of approx. €220 million, Aliments Carrière offers the Bonduelle Group a new region of growth and the opportunity to spread its risk more evenly.

Message from the Chairman of the Supervisory Board

Defi ned as a growth lever for the Bonduelle Group, the area of health and nutrition is

important at all levels of the company.- Upstream agriculturally, where cultivation methods take into account nutritional demands.

- In the agri-industrial plant, consisting of 23 factories (excluding Carrière) where every

year the improvement of vegetable processing equipment allows us to optimise the preservation of nutrients in the products.- And obviously at the level of the fi nished product, since the group’s actions in relation to nutrition starting at the agricultural phase bring added value and quality guarantees to the products which it is important to communicate to the consumers. This stated desire to consistently communicate on the packaging has led the group’s nutrition department to develop a nutritional charter, which acts

as a guide for each country to the development of its communication on its products.There are currently two promising nutritional projects underway: initial work on the reduction of

salt levels in products is currently being carried out. During the previous fi nancial year, 185

tonnes of salt were removed from products. Other action has also been taken with a view to optimising the level of fats in products, notably in seasoning.

ÉTATS-UNIS

CANADA

Philadelphia

New York

Montréal St-DenisSt-Cesaire

BedfordSte-Martine

IngersollTecumseh

Strathroy

Québec

Halifax

Boston

Aliments CarrièreLarge townsMain strategies

Detroit

Toronto

Pittsburgh

Chicago

Albany

Fredericton

Washington

Polish poster,“Vegetable DayTM”

Distribution of turnover2006/2007

Projected distribution of turnover 2007/2008*

*After integration of Aliments Carrière.

FRANCESublime emotions… after the success

of the Légumes du Soleil range, Cassegrain continues to innovate

and is offering the Concassés de Légumes (crushed vegetables) range, an original concept based on the culinary traditions of Provence and

which makes vegetables sublime. Consisting of 4 recipes,

this new range has some amazing fl avours. As an aperitif or a side dish,

these innovations with a taste of the South of France strengthen the Cassegrain range.

CANADAThe launch in Canada of the “Steammm!” frozen vegetables for steam cooking is an initial trans-Atlantic collaboration. Bonduelle’s expertise has enabled it to be the fi rst on this market segment

in Canada. This new range, which has been a huge success on the fast moving consumer goods segment, won the annual prize for innovation in the food sector in Quebec, and it was also a fi nalist for the Canadian innovation of the year prize.

Nutrition, from the field to the plate

The Louis Bonduelle Foundation

Parallel with these improvements, the Bonduelle commitment to health and nutrition has materialised through its company foundation, the Louis Bonduelle Foundation. With this foundation, Bonduelle aims to act alongside the authorities, in a negative public health environment where obesity and its associated illnesses are growing signifi cantly.The Louis Bonduelle foundation, which was created with a view to implementing a lasting change in eating behaviour, was born in France in 2004 and became a more European entity the following year with the birth of the “Fondazione” in Italy. Whilst 2005 marked the beginning of the European venture, 2007 can be seen as the year that it signifi cantly expanded. The two pioneering countries were followed by Belgium, the Netherlands and Poland, which have joined the “Foundation” adventure, or got involved with its activities. These operations, developed by the foundation, are preventative tools providing consumers with solutions which can help them to adopt good eating habits. Tuesday, “Vegetable Day”, created for the catering sector, and “The Vegetable Round”, developed in partnership with French charity for the poor Secours Populaire, are examples of Bonduelle’s commitment expressed through its Business Foundation.

Details of all of the Foundation’s activities can be found on its website:www.fondation-louisbonduelle.org

Conquering the West

Integration of Aliments Carrière

During the 2006/2007 fi nancial year, the Supervisory Board carried out the work that you confi ded to it.It was regularly informed by management of developments in activity and had at its disposal all of the documents needed for the verifi cation of the fi nancial statements and consolidated accounts.During the next AGM of 6th December 2007 you will have

the opportunity to vote on the renewal of the mandates of 3 members of the Supervisory Board: Damien Bonduelle, Olivier Cavrois and Yves Tack.As was the case in previous years, you will fi nd in the specifi c report to be presented to the AGM of 6th December 2007 the detailed account of the work of the Board and of the Accounts Committee during the period.

Ladies and Gentlemen,

N E W P R O D U C T S

Liabilities(In thousands of euros) At 30 Jun 2006 At 30 Jun 2007

Shareholders’ equity (Group share) 312 324 360 692Share capital 56 000 56 000Share premiums 22 545 22 545Consolidated reserves 233 779 282 147Minority interests 20 750 21 133Shareholders’ equity 333 074 381 825Non-current liabilities 293 573 264 717Financial debts 269 959 228 805Staff commitments 4 617 5 696Other non-current provisions 7 632 9 221Deferred taxes 1 932 10 699Other non-current liabilities 9 433 10 296Current liabilities 482 193 594 298Current fi nancial debts 66 131 131 553Current provisions 3 921 2 544Suppliers and other creditors 408 265 450 974Tax debts 2 355 7 685Other current liabilities 1 522 1 542Total liabilities 1 108 840 1 240 840

42 % France

58 % International

Other eurozone countries

Rest of the world France

André Crespel

(in thousands of euros) At 30 June

2006At 30 June

2007

Turnover 1 196 046 1 252 989Purchases and external charges (835 550) (864 971)Payroll (241 391) (249 805)Depreciation (48 954) (51 601)Other operating income 33 202 27 667Other operating charges (32 731) (42 344)

Income from disposalof consolidated shareholdings (73) 0Operating income before exceptionals 70 549 71 936Non-recurring items (2 792) 12 083Operating profit 67 757 84 018Financial income 46 813 29 924Financial charges (56 439) (42 188)Investment income (9 626) (12 264)Results of equity-accounted companies 3 856Pre-tax profi t 58 131 75 610Income taxes (17 770) (23 894)Net profi t 40 361 51 716- Group share 39 228 51 803- Minorities share 1 133 (87)Basic earnings per share 4,99 6,58Diluted earnings per share 4,99 6,56

Assets(In thousands of euros) At 30 Jun 2006 At 30 Jun 2007

Non-current assets 430 509 454 949Other intangible fi xed assets 34 244 42 890Goodwill 75 312 75 312Tangible fi xed assets 291 551 297 838Equity accounted shares 73 27 621Other non-current fi nancial assets 17 236 2 495Deferred taxes 10 496 8 312Other non-current assets 1 598 480Current assets 678 331 785 891Stocks and work in progress 279 526 319 205Clients and other debtors 330 492 374 313Tax receivables 10 091 6 241Other current assets 4 561 4 200Other current fi nancial assets 9 290 18 820Cash and cash equivalents 44 372 63 112Total assets 1 108 840 1 240 840

Consolidated profit and loss account Consolidated balance sheet

ITALY

Bonduelle Italy has developed three new recipes within its Agita & Gusta range. These innovations represent an opportunity for consumers to treat themselves whilst looking after their health.On the menu for Italians is a recipe rich in beta-carotene, which is good for the skin, plenty of fi bre, good for the digestive system, as well as a product rich in omega-3, which helps protect the cardio-vascular system.

N E W P R O D U C T S