reunion analystes 25 02 2010 gb v2 - vilmorin & cie · 2017. 4. 24. · informative meeting...

Informative meeting

February 25 th 2010

Informative meeting – February 25 th 20102

This presentation contains information of a prospec tive nature which does not necessarily reflect the future performances of Vilm orin, which might turn out to differ noticeably. By its very nature this information is subject to risks and uncertainties. This presentation, with the information it contains , does not constitute a sales or subscription offering, or a request for a proposal to buy or subscribe to shares in any country whatsoever. In France, shares cannot be off ered or sold without a prospectus approved by the AMF (French Stock Exchange Authorit y). Distribution of this presentation may, in certain countries, be subject to certain laws and regulations in force. Persons physically present in countries wher e this document is disseminated, published or distributed should request information about such restrictions and comply with them.The shares referred to in this presentation have no t been and will not be registered in accordance with the U.S. Securities Act of 1933, as amended (the “Securities Act ”) and cannot be offered or sold in the United States without registration or exemption from registration, in compliance with the Securitie s Act. Vilmorin & Cie does not intend to register the offering, whether fully or i n part, in the United States, nor offer shares to the public in the United States.


Highlights for the 1 st semester

2009-2010

Development strategy End of year challenges

6

AGENDA

2

1

Coming disclosures

Financial statements for the 1st semester 2009-2010

5

4

Project to increase the capital3

Highlights for the 1 st

semester 2009-20101


Highlights for the 1 st semester 2009-2010

Satisfactory results for the first semester

Sales up by 2.5%*: • Very dynamic vegetable seeds activity overall in sp ite of a difficult vegetable

production market in Europe• Excellent season for rapeseed and a cereals campaig n significantly down in

Europe• Initial stages of the corn campaign in the United S tates on line with objectives• Satisfactory growth for the garden products activit y

Promising results for the first semester• Increase in sales margin• Appreciable increase in the operating margin, like for like• Good control of the financial result• Improvement of the net income for the semester

* Revenue from ordinary activities

like for like


A successful first semester

Pursuit of the dynamic development policy of the fi rst semester…

External growth operations• Su Tarim. Vegetable seeds. Turkey• Atash. Field seeds. India• Clovis Matton. Field seeds. Belgium• Dahlco. Field seeds. United States

Highlights for the 1 st semester 2009-2010

Research agreements• Don Mario. Field seeds.

Argentina• Arcadia. Wheat. United States• PHRO. Tomato. Poland• AGT. Wheat. Australia

…. which needs to be accelerated in the short term to benefit from historic growth opportunities

Development strategy: historic growth opportunities

2


Development strategyProfile

A “pure player” in seeds

• 4th largest seeds company in the world, an expert in the creation, production and distribution of high a dded value seeds that contribute to meeting food needs more efficiently.

• Core business based around two activities intended for professional markets:

Vegetable seeds*: 41% of total sales. Operating margin: 17% Field seeds*: 50% of total sales. Operating margin: 9%

Monsanto25 %

Pioneer15 %

Bayer3 %

Autres40 %

KWS3 %

Vilmorin5 %

Syngenta9 %

Source: information from companies.

* Data 2008-2009

Others


Development strategy

Profile

A specific organization model

• A long-term development vision

• Decentralized and multi-cultural organization

• Strong competitive positionsin key crops

• A successful history of acquisitions, strengthening recurring organic growth

Vegetable seeds Corn Wheat

No. 2 in the world:tomato, melon, carrot, onion, sweet pepper…

No. 3 in Europe

No. 4 in the USA

No. 1in Europe

* Data 2008-2009


Historic growth opportunities

Solid long-term growth perspectives

• Increase in the world population

• Improvement in the standard of living

• Evolution of consumption habits

• Increase in the rate of use of commercial seeds

• Ever greater use of GM seeds

• Development of industrial applications(agrifuels…)


Growth in the market for seeds:

+ 9 %/year in value from 2003 to 2008

� Vegetable seeds: + 8 %/year

� GM field seeds: + 22 %/year

� Conventional field seeds: + 4 %/year

Source : P. Mc Dougall


Historic growth opportunities

Growing internationalization markedby the predominance of 3 geographical zones

• Asia: 70% of vegetable crops (production in million s of ha)

• Europe: 59% of world cereal crops

(value in billions of $)

• North America: 50% of world corn crops

(value in billions of $)


Sources: P. Mc Dougall USDA FAO

Europe Asia

North America

Others

32%

17%

36%15%

World seeds markets

($26 Bn. 2008)

32 %

17 %

36 %15 %


Development strategy Historic growth opportunities

Technological scale-up, a source ofadditional added value and competitiveness

• Industrialization of biotechnologies

• New hybridization process for certain crops:

rape, wheat…

• Implementation of biotechnology platforms

• Strategies of alliances and exchanges of technology

R&D* budgets of the top seeds companies:

� Monsanto: 13.7%

� Dupont: 11.3%

� Syngenta: 16.9%

� Vilmorin: 14.7%

* (% of sales for seeds and traits.Excl. research partnerships)

Sources: internal and company publications

1965 -> 1985 -> 1975 -> 2005 ->1995 ->

In vitro culture GenomicsMolecular marking

Transgenesis

2010 ->

Precision phenotyping

Association ofgenotyping and phenotyping

Developmentstrategy: a change in dimension


Development strategy A change in dimension

Vegetable seeds : accelerate growth in Asia, partic ularly in India, Japan, Korea… and China

• China: 70% of growth in vegetable surface areas

Corn : gain market shares through innovation by tak ing up positions on the market for grain corn, and by developing pro prietary GM varieties

• Corn acreage in Europe: 61% grain and 39% silage• Growth rate for the GM corn seeds market over the p ast 5 years (in value):

+ 25%/year

Wheat : internationalize European leadership by com bining technological innovations with locations in the mai n producing companies

• Rate of use of commercial seeds in the world: 34%

Consolidate Vilmorin’s growth profileSources: FAO USDA. Eurostat, FNPSMS, internal, P. McDougall, Rabobank


Development strategy Vegetable seeds: intensify organic growth

Benefit from the full impact of the implementation of business units• Optimization of the current organization, particula rly in the approach to

Asian markets• Commercial development and cover of new territories for expansion• Co-ordination of support functions

Optimize industrial and research tools

Intensify the use of biotech platforms (molecular m arking)


Australia/New Zealand

JapanChina

India South Korea

IndonesiaThailand

Taiwan

Vietnam


Vegetable seeds: accelerate growth in Asia

Implement a targeted development strategy in accord ance withthe strategic importance of markets and their poten tial for growth

• Optimize the geographical cover of “Business units”• Invest wisely: breeding programs, sales networks…• Select the most pertinent external growth operation s

Strategic markets.

Their size justifies an approach from several angles to become one of the 3 leaders

Key markets.

Their size justifies the direct location of at least 1 business unit

Opportunity markets.

Their size justifies solid positions on targeted segments



Corn : gain market shares through innovation

Accelerate the marketing of new grain corn varietie s• Diversification of genetic resources• Use of biotechnologies

- High throughput molecular marking

- Quicker properties fixation

• Application of specific skills through a dedicated multi-disciplinary team

Development of proprietary GM corn varieties

61 %

BenefitsExisting

technologyPartners

Insect resistance(European market)

X

Yield improvement -

Tolerance to drought -

Resistance to mycotoxins - Internal


Build up new sales networks

Set up the conditions for efficient deregulation of innovations


Wheat : internationalize European leadership

Diversify genetic resources throughout the world

Develop proprietary technological innovations

Benefits Partners

GM wheat Optimization in the use of nitrogen / Yield improvement

GM wheat Tolerance to drought

Hybrid wheat Yield improvement

Undergoing partnership

Project to increase the capital

7


Project to increase the capital

Value � Around €200 million

Allocation of funds� Organic growth

� Strategy for targeted international acquisitions

Structure � Operation maintaining pre-emptive rights aimed primarily at Vilmorin’s existing shareholders

Schedule� Launch of the operation envisaged depending on market

conditions and pending approval from the AMF (French Stock Exchange Authority)

Main features of the operation

Financial statements for the first semester 2009-2010

3


Operational organization

Vegetable seeds• HM. Clause• Hazera - Nickerson Zwaan• Vilmorin• Mikado Kyowa

Field seeds

• Limagrain Europe

• AgReliant

Garden products

• Oxadis • Suttons

Financial statements 1 st Sem. 2009-2010


Accounting reference • IFRS on December 31 st 2009

Consolidation scope• Acquisition de Clovis Matton in August 2009 (GI*)• Integration of the company Mikado Dalian (China), s ubsidiary of Mikado Kyowa (GI*),

as of July 2009• Restatement of the Garden Products activity (Oxadis , Suttons) as continuing

operations

Average rate of the main currencies (changes / December 31st 2008)• $ = 1.45 (-3%)• £ = 0.89 (-8%)• ¥ = 133 (+8%)• ILS = 5.52 (-7%)

* GI = global integration

Financial statements 1 st Sem. 2009-2010


Consolidated sales*in M€

+ 2.7%306314

+ 2.5%


Like for like

Currency translations

Changes to consolidation scope

5.1

12.31.2008 restated

12.31.2009

4.4

Financial statements 1st Sem. 2009-2010

12.31.2008 disclosed

300


Sales* per activity


in M€

Like for like


+ 7.8%161174

+ 8%


12.31.2009

0.9

0.6


12.31.2008 restated

- 0.8%24 24+ 2.4%

12.31.2009

0.7

12.31.2008 disclosed

18

12.31.2008 restated

Vegetable seeds Garden products



in M€

Like for like



Sales* per activity

- 3.4%120 116

- 4.7%

12.31.2009

2.8 4.5


Contribution to consolidated sales like for like

North America Europe

-6.5%1079

+22.2%

12.31.2008 restated

Field seeds


Analysis and evolution of sales* by geographical zone

Europe€162 M - 1%**

Americas€50 M + 13%**

Asia/Oceania€45 M + 10%**

Africa/Middle East€34 M + 9%**

** With data comparable to 2008-2009

Europe

Americas

Africa/ME

Asia

17%

56%12%

15%

* Sales of finished goods



129148

Q1 Q4Q3Q2

08-09 08-09

70

126

08-09

78

37

176

83

75

08-09

8

Vegetable seeds

Field seeds Europe

Field seeds North America

449

122

182

102

25

246


50

84

09-10

in M€

09-10

Analysis per quarter

Garden products

14 15 1043

09-10 09-10

To

be d

iscl

osed

on

05.0

3.20

10

To

be d

iscl

osed

on

08.0

3.20

10

25

166

90

58

99




Income statement

1 Oxadis reintegrated, Suttons in discontinued operati ons 2 Oxadis and Suttons reintegrated/ Tax relief for rese arch restated

In M€ 12.31.2008 disclosed 1

12.31.2008 restated 2

12.31.2009

Sales 299.5 305.8 314.2

Sales margin 133.5 136.6 147.5

Sales margin rate 44.6% 44.7% 46.9%

Operating result (20.2) (22.4) (26.5)

Financial result (10.5) (10.5) (1.0)

Associated companies (0.4) (0.4) (0.2)

Income taxes 3.0 3.3 (2.6)

Discontinued operations (1.1) (0.4) 1.0

Net income (29.2) (30.4) (29.3)

Net income Group share (27.4) (28.5) (25.9)


Operating charges


In M€ 12.31.2008 disclosed

12.31.2008 restated

12.31.2009

Marketing and sales (69.6) (72.1) (74.3)

Research and development (38.2) (41.3) (45.9)

Administration and other charges (45.9) (45.6) (53.8)

Net operating charges (153.7) (159.0) (174.0)

Capital gains on the sale of real estate €2.6 M

Provision for reorganization €4.3 M

1 Oxadis reintegrated, Suttons in discontinued operati ons 2 Oxadis and Suttons reintegrated/ Tax relief for rese arch restated

Informative meeting – February 25th 201031

Key figures per activity on 12.31.2009



0.6-2,70.6Holdings

1,0--Discontinued operations

-26,5

-7.0

-26,4

9,6

Résultatopérationnel

-4,723.7G

-29,3314.2

-27.9116.1Field seeds

2,7173.8Vegetable seeds

Sales*

-0.4-2.70.6Holdings

1.0--

-26.5

-7.0

-26.4

9.6

Operatingincome

-4.723.7Garden products

-29.3314.2Consolidated

-27.9116.1

2.7173.8

Net incomeIn M€


Balance sheet structure

Fixed assets

Working capital needs

Discontinued operations

ASSETS

Equity

Provisions

Deferred taxes

LIABILITIES

Net indebtedness

Discontinued operations


* including cash 252 200

Assets

Liabilities

4

253

*

688 670 700

352 337389

908 911960

469 538469

65 716640

4443

9

12.31.2008disclosed

12.31.2008restated

12.31.2009

End of year challenges4


Pursue robust growth of the vegetable seeds activit y and ensure that the sales campaigns for corn in Europe and Nor th America go well

Handle the potential impacts of the volatile prices of agricultural raw materials

Continue sustained investment in research both in v egetable seeds and field seeds, with the specific objective of developingproprietary upstream technologies

Remain proactive with regard to external growth and partnershipsin targeted zones and areas with strong potential… a nd

Succeed with the increase in capital as envisaged i n the best market conditions in order to boost the change in d imension

End of year challenges

5 Coming disclosures


Disclosure of sales for the 3 rd quarter of 2009-2010 (closing on March 31 st 2010) on Monday May 3 rd 2010 at the end of the day

Disclosure of sales for fiscal 2009-2010 (closing o n June 30 th 2010) on Tuesday August 3 rd 2010 at the end of the day

Disclosure of the results for fiscal 2009-2010 (clo sing on June 30 th

2010) on Wednesday October 6 th 2010 at the end of the day

Coming disclosures

reunion analystes 25 02 2010 gb v2 - vilmorin & cie · 2017. 4. 24. · informative meeting...

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