Vilmorin & Cie : Sales and results for the first semester 2016-2017 - press release

Public limited company with Board of Directors with a capital of 317 717 005.50 euros

Head Office: 4, Quai de la Mégisserie - F-75001 PARIS SIREN Paris 377 913 728

Fiscal year from July 1st to June 30th

Euronext Paris (Compartment A) - Eligible for Deferred Settlement Order

February 15, 2017, at 5:40 pm CET

SALES AND RESULTS

FOR THE 1ST SEMESTER 2016-2017

SALES FOR THE 1ST SEMESTER ENDING ON DECEMBER 31, 2016 UP 10.2% WITH CURRENT DATA

STRONG IMPROVEMENT OF RESULTS FOR THE 1ST SEMESTER 2016-2017 GLOBAL CONFIRMATION OF OBJECTIVES FOR 2016-2017

The consolidated financial statements for the first semester 2016-2017, closed on December 31, 2016, were approved at the Vilmorin & Cie Board meeting of February 14, 2017. The Statutory Auditors have carried out a limited audit of the financial information for the first semester; in their conclusions they have not indicated any reservations or particular remarks.

Consolidated financial information is established in compliance with the IFRS referential (International Financial Reporting Standards) as endorsed by the European Union on December 31, 2016.

The accounting methods and principles adopted in the consolidated financial statements for the first semester on December 31, 2016 are identical to those used in the consolidated financial statements for the fiscal year closing on June 30, 2016.

Thus, no change in accounting methods or estimates with any impact on Vilmorin & Cie's consolidated financial statements was applied by Vilmorin & Cie over the course of the semester.

Evolution of the data for the semester is analyzed using current data and on a like-for-like basis.

Comparable data is restated with constant scope and currency impact; accordingly, the result for the first semester 2015-2016 takes into account in particular the impact of changes in currency translation, by applying the average rate on December 31, 2016 to the income statement on December 31, 2015.

The activity of the company Genica Research (United States. Vegetable Seeds), acquired in February 2016, has not been restated for scope for fiscal year 2016-2017, since the company's American activities were integrated into the HM.CLAUSE Vegetable Seeds Business Unit while its European activities into that of Vilmorin-MKS.

SALES FOR THE FIRST SEMESTER: VERY DYNAMIC GROWTH

MARKED BY A PERFORMANCE OF EXCELLENT QUALITY FOR THE FIELD SEEDS ACTIVITY

▌ VEGETABLE SEEDS DIVISION:

A FIRST SEMESTER WITH SIGNIFICANT GROWTH

IN SPITE OF A SLOWDOWN IN BUSINESS OVER THE 2ND QUARTER

Sales for the Vegetable seeds division for the first semester came to 286.9 million euros, an increase of 5.7% with current data compared with the first semester for 2015-2016. Restated on a like-for-like basis, the division achieved an increase of 5.2 %.

During the course of the second quarter, business was practically stable (-0.6% on a like-for-like basis), after several quarters of extremely strong progression. This slowdown mainly concerns Europe, and particularly southern Europe (Italy and Spain), affected by unfavorable climate conditions for certain vegetable productions. It also conveys the anticipation and offset of certain business operations and the programmed drop in the agricultural supplies activity of the Business Unit Vilmorin-MKS in Japan.

This performance therefore does not cast any doubt on Vilmorin & Cie's growth impetus for this activity or its global sales growth objective for fiscal year 2016-2017.

Over the full semester, growth remains high and concerns most geographical zones - particularly North America and Latin America - and strategic crops, with fine progression of hot and sweet pepper, carrot, summer squash and cucumber.

▌ FIELD SEEDS DIVISION: SUSTAINED GROWTH IN BUSINESS,

DRIVEN BY STRONG DYNAMIC BUSINESS IN SOUTH AMERICA

Sales for the Field seeds division for the first semester came to 201.6 million euros, an increase of 18.2% compared with the first semester for 2015-2016; this increase was 21% on a like-for-like basis.

• In Europe, on a rapeseed market characterized by the continuing adoption of hybrid seeds, the commercial campaign for this crop achieved an excellent level of growth, both in terms of volume and value, resulting in market share gains. Vilmorin & Cie thus confirmed its position as a top-ranking European player.

  The first part of the straw cereal seed campaign (wheat, barley) recorded a marked drop in sales, in a market context where the use of commercial seeds has fallen, particularly in France.

  In a market environment still heavily influenced by the low level of prices for agricultural production, orders for corn are lower, in line with the falling trends for cultivated acreage for this crop, particularly in Western Europe. However, orders to date for sunflower seeds are promising, particularly in Eastern Europe.

• In South America, the first corn campaign in Brazil (safra) was considerably higher than the previous year, with an increase both in volume and in value, in line with market trends, while the second corn campaign (safrinha) has also made a very good start, partly through anticipation of the sales campaign.

• In the other new development zones (Asia and Africa), the level of business achieved overall during the first semester corresponds to expectations.

The Field Seeds division thus recorded sales for the second quarter up 29.5% on a like-for-like basis.

Finally, on the North American market, the beginning of the commercial campaign for corn and soybean seeds is running well, in the context of a drop predicted for corn acreage, benefitting an increase in soybean acreage.

RESULTS FOR THE FIRST SEMESTER:

A STRONG IMPROVEMENT DIRECTLY LINKED TO THE INCREASE IN BUSINESS AND TIGHTER MANAGEMENT OF OPERATING CHARGES

▌ After taking into account the cost of destruction and depreciation of inventory, margin on the cost of sales came to 246 million euros, representing 48.9% of total sales, down 1.1 percentage point compared to the first semester for the previous fiscal year; it was mainly affected by the business mix.

Net operating charges came to 264.5 million euros, an increase of 4.2 million euros compared with the first semester for fiscal year 2015-2016, including an additional investment of 6.4 million euros in research and development.

▌ The income contribution from associated companies, in particular AgReliant (North America. Field Seeds) and Seed Co (Africa. Field Seeds), stood at -24.9 million euros at the end of the first semester for 2016-2017, virtually the same level as at the end of the first semester for the previous fiscal year.

▌ The financial income shows a net charge of 6.8 million euros as opposed to 22.9 million euros on December 31, 2015. In particular, this year foreign exchange gains of 4.1 million euros were recorded, as opposed to foreign exchange losses of 5.4 million euros for the previous fiscal year.

▌ Income tax on December 31, 2016 shows a net tax income of 10.5 million euros, a decrease of 5.9 million euros compared to the previous year.

▌ As a result of these factors, the net result for the semester shows a loss of 39.7 million euros, including a group share loss of 38.8 million euros, a reduction of 22.9 million euros compared with the first semester for fiscal year 2015-2016.

▌ At the end of December 2016, the balance sheet structure is naturally influenced to a large extent by the seasonal nature of the annual business cycle.

Net of cash and cash equivalents (224.9 million euros), financial indebtedness came to 988.8 million euros, including a non-current share of 884.1 million euros.

The group share of equity stood at 1,112.6 million euros and minority interests at 109.1 million euros.

GLOBAL CONFIRMATION OF OBJECTIVES FOR 2016-2017

COMING DISCLOSURES:

(1) disclosure after trading on the Paris stock market.

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