Results for the fiscal year on June 30, 2022 – Yahoo Finance

VILMORIN & CIE

*On a like-for-like basis.

Financial statements for fiscal year 2021-2022:Vilmorin & Cie once again demonstrates the resilience of its model by achieving solid commercial and financial performances

The consolidated financial statements for 2021-2022, closing on June 30, 2022, were approved by the Vilmorin&Cie Board at its meeting of October 12, 2022. The Statutory Auditors have examined this annual financial information with no particular comments or reservations to make in their conclusions.

In millions of euros

2021-2022

2020-2021

Variationwith current datavs. 2020-2021

Sales for the year

1,587.2

1,476.6

+7.5%

EBITDA

392.1

367.2

+24.9 M

Operating income

136.3

127.4

+8.9 M

Income from associated companies

17.9

26.3

-8.4 M

Financial result

-33.4

-46.9

+13.5 M

Income taxesOf which:

Current taxes

Deferred taxes

-25.4

-22.9-2.5

-13.4

-21.58.1

-12.0 M

-1.4 M-10.6 M

Consolidated net income

95.4

93.4

+2.0 M

Group share of net income

92.2

92.3

-0.1 M

Vilmorin & Cie's consolidated financial information has been established, at the close of fiscal year 2021-2022, in compliance with the IFRS reference (International Financial Reporting Standards) as applied by the European Union on June 30,2022. Consolidated sales, corresponding to revenue from ordinary activities for fiscal year 2021-2022 came to 1,587.2 million euros, an increase of 7.5% with current data, and 6.2% on a like-for-like basis compared with 2020-2021. In spite of a general context that was destabilized by the Russian-Ukrainian conflict, Vilmorin & Cie managed to exceed its objective for growth in consolidated sales as revised at the end of the third quarter of the fiscal year (i.e. growth of around 5% on a comparable basis)1.

After taking into account the cost of destruction and depreciation of inventory, the margin on the cost of goods stood at 48.6%, a decrease of 0.7 percentage points compared with 2020-2021.

Net operating charges came to 635.2 million euros, as opposed to 600.6million euros on June30, 2021.

In compliance with its strategic orientations, Vilmorin & Cie pursued its research programs, both in terms of conventional plant breeding and biotechnologies. Total research investment came to 275.1 million euros, as opposed to 257.0 million euros in 2020-2021, and represents 16.2% of seed activity sales2, which is in line with the average of the previous three fiscal years.

The consolidated operating income stood at 136.3 million euros, an increase compared to the previous fiscal year (127.4 million euros) for all the seeds activities, including Garden Products, resulting in a current operating margin rate of 8.6%, slightly lower by 0.3 percentage points compared with fiscal year 2020-2021.

The share of income from associated companies came to 17.9 million euros, a marked decrease of 8.4 million euros compared with the previous fiscal year, due in particular to a deterioration in the operating performance of AgReliant (North America. Field Seeds) and the impact of hyperinflation, which severely limited the performance of Seed Co in Zimbabwe (Africa. Field Seeds).

The financial result showed a net charge of 33.4 million euros as opposed to 46.9 million euros in 2020-2021, an improvement of 13.5 million euros, mainly due to lower currency exchange losses.

The net charge of income taxes deteriorated by 12.0 million euros, and stood at 25.4 million euros as opposed to 13.4 million euros in 2020-2021, mainly the result of a deterioration in the deferred tax position of 10.6 million euros, partly attributable to hyperinflation in Argentina (under local standards) and in Turkey.

Vilmorin & Cie's total net income came to 95.4 million euros, an increase of 2.0 million euros compared to the previous fiscal year. This is the highest net income since fiscal year 2012-2013. The group share ("attributable to the controlling Company") stood at92.2 million euros.

Net of cash and cash equivalents (321.3 million euros), total financial indebtedness came to 901.1 million euros on June 30, 2022 compared with 867.4 million euros on June 30, 2021. The share of non-current financial indebtedness stood at 1,088.3 million euros, compared with 994.8 million euros the previous year. The group's share of equity stood at1,434.6million euros and minority interests at 48.8 million euros, with a significant increase over the fiscal year, due to the high level of net income and an increase in translation reserves linked to the appreciation of the US dollar.

Thus, compared with the previous fiscal year, the balance sheet structure on June 30, 2022 was marked by a decrease in the ratio of net indebtedness to equity (a gearing of 61%, compared to 65% on June 30, 2021). The leverage ratio as of June 30, 2022 was 2.3x compared with 2.4x as of June 30, 2021, reflecting an improvement in the group's debt reduction capacity.

2022 dividend:Proposal of a dividend of 1.60 euros per share at the upcoming Annual General Meeting of Shareholders, in Auvergne

A dividend of 1.60 euros per share, stable compared to the dividend of the previous fiscal year, will be proposed this year. This corresponds to a distribution rate of 39.8%.

This dividend will be submitted to the vote of the Shareholders by the Board of Directors of Vilmorin & Cie, on the occasion of the Annual General Meeting of Shareholders of December 9, 2022, which will be held in the Auvergne-Rhne-Alpes region, where Limagrain, the parent company and reference shareholder of the Company, is located.

Dividends will be detached on December 13, 2021, with payment on December 15, 2021.

News:A new research partnership concerning pulses in Canada

As explained when sales for the fiscal year 2021-2022 were disclosed, Vilmorin & Cie, through its Field Seeds division, announced the signing of a new partnership with Saskatchewan Pulse Growers3, in July 2022, to set up a joint research and innovation program for pulses, more particularly dry peas and lentils.

This new program, co-financed equally by the two parties, will be based in Saskatoon (Province of Saskatchewan, Canada), where the Limagrain Cereals Research Canada4 joint venture is already established, and will respond directly to the needs of farmers and to major production challenges. Among the targeted goals are resistance to root diseases, increased protein content and, above all, improved yields under variable growing conditions. With the help of a dedicated team, the objective is to bring new expertise to the region in terms of breeding, molecular genetics, treatment of pathologies and field trials.

Canada is the world's largest producer of pulse crops, with more than 2.3 million hectares planted each year5.

Objectives for 2022-2023:

Business growth of between 6% and 8%6and a current operating margin rate of at least 8%

Market conditions for fiscal year 2022-2023 are likely to remain uncertain and fluctuating, due to inflationary pressures resulting, in particular, from the geopolitical context. In this environment, Vilmorin & Cie will continue to play its role as a leading seed company by continuing to strengthen its competitive positions; the Company will pursue its measured investment in research & development, in particular in upstream technologies, while remaining attentive to any opportunity for external growth, in line with its strategic challenges and foundations.

For fiscal year 2022-2023, Vilmorin & Cie has set itself the objective of achieving an increase in consolidated sales of between 6% and 8%6, excluding the positive impact of the EGalim law on sales (which will however be neutral concerning the operating income) 7.

The Company is aiming for a current operating margin rate of at least 8%, impacted by the evolution of its business mix in favor of Field Seeds. This rate will take into account investment into research at a similar level, as a percentage of sales, to that of the two previous fiscal years, and spread evenly between Vegetable Seeds and Field Seeds.

Finally, Vilmorin & Cie is aiming for a contribution from associated companies - mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds) - at least equal to that of fiscal year 2021-2022.

Vilmorin & Cie's commercial prospects in Ukraine-RussiaIn Ukraine, the outlook for the coming fiscal year remains moderate, due to the difficulty of local farmers and distributors to obtain funding and, more generally, the lack of visibility in the region due to the continuing conflict with Russia. Accordingly, the Company expects a level of activity similar to that of fiscal year 2021-2022.

In Russia, thanks to the performance of its sunflower and corn seed varieties in particular, Vilmorin & Cie intends to confirm the momentum observed during the previous fiscal year. Prospects to date are favorable, but their realization remains subject to growing logistical and geopolitical problems, to which the Company is striving to find solutions.

Anthony CARVALHO, Vilmorin & Cie's new Chief Financial Officer

As announced in the press release of its sales for fiscal year 2021-2022, Vilmorin & Cie appointed Anthony CARVALHO to its Executive Committee, on September 14, 2022, as Chief Financial Officer.

Anthony CARVALHO, 33, holds a Master's degree in Information Systems from the Institut Mines-Tlcom SudParis, and also a Master's degree in Audit & Financial Advisory from the University of Paris Dauphine and a Master's degree in Finance from ESSEC. He has significant experience in financial functions, acquired in investment funds and then as Head of the integrated Family Office of the Roullier Group. He also has experience in Audit and Advisory, acquired within Deloitte. Previously, Anthony CARVALHO was, as of September 2021, Chief Financial Officer of the Roullier Group.

Coming disclosures and events

For any further information

Tuesday November 8, 2022*Disclosure of salesfor the first quarter of 2022-2023

Friday December 9, 2022Annual General Meeting of Shareholders

Tuesday December 13, 2022Detachment of the dividends

Thursday December 15, 2022Payment of the dividends

* Disclosure after trading on the Paris stock market.Dates provided as an indication only, and liable to be changed.

Anthony CARVALHOChief Financial Officer

douard ROCHEHead of Financial Communication and Investor Relations

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Results for the fiscal year on June 30, 2022 - Yahoo Finance