VILMORIN & CIE : & CIE : Annual results 2014-2015

•  MIXED FINANCIAL PERFORMANCES IN 2014-2015 IN AN UNFAVORABLE CONTEXT FOR FIELD SEEDS
•  CONTINUED DYNAMIC POLICY FOR DIVIDENDS
•  OUTLOOK: OBJECTIVE OF MEASURED BUSINESS GROWTH FOR 2015-2016 AND FURTHER DEPLOYMENT OF THE DEVELOPMENT STRATEGY, IN A LONG-TERM VISION

FINANCIAL STATEMENTS FOR FISCAL YEAR 2014-2015

The consolidated financial statements for 2014-2015, closing on June 30, 2015, were approved by the Vilmorin & Cie Board at its meeting of October 2, 2015. The Statutory Auditors have examined this annual financial information with no particular comments to make in their conclusions.

 * restatement for the impacts regarding the first application of IFRS 11

** variation 2014-2015 compared with restated data for 2013-2014

Consolidated financial information has been established in compliance with the IFRS standards (International Financial Reporting Standards) as adopted by the European Union on June 30, 2015.

The main changes to the consolidation scope concern the acquisition of Tropdicorp (Vietnam. Vegetable seeds) finalized in March 2015, and the disposal of the company Suttons (United Kingdom. Garden products) finalized during the 1^st semester of fiscal year 2014-2015.

In order to apply IFRS 11, as of July 1, 2014, Vilmorin & Cie has begun recording its main partnerships (in particular AgReliant. North America. Field seeds) using the equity method, whereas previously the method used was proportional integration.

Moreover, it should be noted that the company Seed Co (Zimbabwe. Field seeds) integrated the consolidation scope this fiscal year using the equity method, following the purchase of a complementary stake by Vilmorin & Cie during the course of the 1^st semester 2014-2015⁽¹⁾.

 ⁽¹⁾  cf. Vilmorin & Cie press release of October 7, 2014

Consolidated sales⁽²⁾, corresponding to revenue from ordinary activities for the fiscal year 2014-2015, came to 1,269.4 million Euros, up 0.7% with current data.

Restated on a like-for-like basis (currency, scope), they grew by 1% compared with the previous fiscal year.

After taking into account the cost of destruction and depreciation of inventory, the margin on the cost of goods came to 47.5%, slightly down, by 0.2 percentage points, compared with 2013-2014.

In compliance with its strategic orientations, Vilmorin & Cie continued to intensify its research programs in 2014-2015, both in terms of conventional plant breeding and biotechnologies. Total research investment came to 211.1 million Euros as opposed to 190 million Euros in 2013-2014, and now represents 18.9% of sales for the seeds activities intended for the professional markets, compared to 17.4% the previous fiscal year.

Net operating charges came to 503.1 million Euros, compared to 472.1 million Euros on June 30, 2014.

Consequently, the consolidated operating income stood at 100.2 million Euros, a decrease of 29.5 million Euros compared with the previous fiscal year, resulting in an operating margin of 7.9%, corresponding to a current operating margin of 8%.

Income from associated companies came to 29.4 million Euros, including in particular AgReliant and Seed Co.

The financial result showed a net charge of 39.2 million Euros compared with 38.1 million Euros in 2013-2014, this year including currency exchange losses of 3 million Euros compared with 17.2 million Euros on June 30, 2014, and a provision of 6 million Euros for shares in a minority stake.

Cost of funding came to 27.2 million Euros compared with 19.6 million Euros the previous fiscal year.

Net income taxes came to 14.5 million Euros as against 27.2 million Euros in 2013-2014.

Finally, the total net income came to 75.9 million Euros, down significantly (12.4 million Euros), compared with the previous fiscal year; the Group share stood at 72.9 million Euros.

Compared with the previous fiscal year, the balance sheet structure on June 30, 2015 remained solid but was once again marked by an increase in the debt ratio, due to the external growth operations achieved during the course of the fiscal year, and to an increase in the working capital needs for the Field seeds activity.

Net of cash and cash equivalents (373.4 million Euros), total net financial indebtedness came to 660.2 million Euros on June 30, 2015 as opposed to 515 million Euros on June 30, 2014. The share of non-current financial indebtedness stood at 708.8 million Euros.

The Group's share of equity stood at 1,158.4 million Euros and minority interests at 113.6 million Euros.

  ⁽²⁾  cf. Vilmorin & Cie press release of July 29, 2015

 DIVIDENDS

The Board of Vilmorin & Cie has decided to propose to the Annual General Meeting of Shareholders a dividend of 1.57 Euros per share, an increase of almost 5% compared with the previous fiscal year, bearing in mind the free allotment of shares granted during fiscal year 2014-2015, on the basis of one new share for ten old shares held.

Moreover this dividend corresponds to a significantly higher pay-out rate of 44.8%, compared with 37.2% in 2014.

Dividend detachment date will be on December 15, 2015, with payment on December 17, 2015.

NEWS

In September 2015, Vilmorin & Cie received all the necessary authorizations from the Chinese administration in order to create the joint venture for the production and distribution of corn seeds, for which it has signed an agreement with the Chinese company Anhui Hengji Seeds. Vilmorin & Cie holds 45% of the capital of this new structure.

In China, the participation of foreign companies in the capital of Chinese seed companies is currently restricted to minority positions.

Vilmorin & Cie, which already has a network of research sites in China for the breeding of seeds adapted to local agronomic conditions, has now taken a major step forward in its development in this key market.

China is a major producer of cereals and among the top world players for rice and corn acreage. Its seed market is growing fast, both in volume and value, driven by the modernization of its agriculture, the gradual concentration of local companies and the involvement of the Chinese authorities in this sector, considered to be highly strategic.

OUTLOOK FOR 2015-2016: BUSINESS GROWTH OBJECTIVE BETWEEN 0 AND 2% AND PRESERVATION OF THE CURRENT OPERATING MARGIN

The environment for fiscal year 2014-2015 was unfavorable on the markets for field seeds; it was marked by a drop in cultivated corn acreage and in the price of agricultural raw materials, and by a very disturbed economic situation in Ukraine and in Russia. At the same time the vegetable markets remained prosperous.

In this context, Vilmorin & Cie globally managed to consolidate its market shares in field seeds and is continuing to gain positions on the vegetable markets. Vilmorin & Cie has thus once again demonstrated its potential for development, while confirming its strategic orientations, particularly in terms of investment in research and innovation, and international development.

Fiscal year 2015-2016 should provide confirmation of Vilmorin & Cie's potential for organic growth in market contexts that will still vary considerably, depending on business activities; the Vegetable seeds activity should benefit from the full impetus resulting from product innovation and market proximity, whereas the Field seeds activity will probably remain influenced by the downward price pressure of agricultural production. Vilmorin & Cie will continue to strengthen, in a reasoned approach, its investments in research and development, particularly in upstream technology, while remaining on the look-out for any targeted external growth opportunity that is coherent with its strategic ambitions.

In this context, Vilmorin & Cie's ambition for fiscal year 2015-2016 is to increase its consolidated sales by between 0 and 2% on a like-for-like basis, with the objective of achieving a current operating margin at the same level as in 2014-2015. This figure will take into account research expenditure estimated at more than 225 million Euros, invested for growth both in the Vegetable seed and the Field seed activities.

Looking beyond the current fiscal year, which will continue to feel the impact of temporary disturbances, Vilmorin & Cie continues to aim to grow its businesses at a higher rate than market trends and to increase its operating margins both in Vegetable seeds and Field seeds.  

You can consult the presentation of the financial statements for the fiscal year 2014-2015 shown at the informational meetings held on October 6, 2015, as of 9 am on the website www.vilmorin.info:
http://www.vilmorin.info/, on the home page and in the section Shareholders and Investors.

COMING DISCLOSURES AND EVENTS (* at the end of trading on the Paris stock market):

Thursday November 5, 2015*: sales at the end of the first quarter 2015-2016

Friday November 20 and Saturday November 21, 2015: Actionaria Fair in Paris

Friday December 11, 2015: Annual General Meeting of Shareholders in Paris

Tuesday December 15, 2015: dividend detachment

Thursday December 17, 2015: payment of the dividends

Vilmorin & Cie develops vegetable and field seeds with high added value to better meet global food requirements.

Accompanied by its reference shareholder, Limagrain, an international agricultural cooperative group, Vilmorin & Cie is currently the fourth largest seed company in the world.

True to its vision of sustainable development, Vilmorin & Cie relies on ongoing investments in research and international growth to strengthen its market shares. An ambition that is driven by its corporate culture which is based on the sharing of knowledge, quality of life and respect for the needs of mankind.

FOR ANY FURTHER INFORMATION:

Daniel JACQUEMOND
Chief Financial Officer
daniel.jacquemond@vilmorin.info

Valérie MONSÉRAT
Head of Financial Communication and Investor Relations
valerie.monserat@vilmorin.info

Clémence DATURI
Financial Communication Officer and Individual Shareholder Relations
clemence.daturi@vilmorin.info

Tel: + 33 (0)4 73 63 44 85
Website: www.vilmorin.info:
http://www.vilmorin.info/