Vilmorin & Cie - Annual report 2017-2018

ANNUAL REPORT Vilmorin & Cie 125 2017-2018 4 Vilmorin & Cie is committed to developing varieties that help reduce the impact of agricultural production on the environment and facilitate a reduction in water consumption levels, as in the case of corn for which varieties are developed with improved tolerance of drought. In vegetable seeds, the Business Unit Vilmorin-Mikado has initiated a water stress resistance test for beans. Evolution of water consumption (in thousands of m 3 and liters/€ of sales) In addition, the support and training of producers are key factors in reducing water consumption with Vilmorin & Cie’s partners. In France, the Business Unit Limagrain Europe offers the “LG Vision Irrigation” decision support tool dedicated to irrigation management. Measures to prevent, recycle and eliminate waste The quantity of waste generated by Vilmorin & Cie is estimated to be 47,885 tonnes (including co-products) in 2017-2018 including 7,669 tonnes of ordinary waste (16%), 35,561 tonnes of organic waste (74.3%), 2,126 tonnes of dangerous waste (4.4%), 1,572 tonnes of sludge (3.3%) and 956 tonnes of other waste (2%). 77.3% of this waste is valorized through different channels: use for animals (12%), compost (8%), recycling (38%) and energy (15%). However, it should be noted that the performance of the different companies in the group remains highly variable on this topic. Breakdown of the production of waste in 2017-2018 by activity During the fiscal year, a call for tenders was issued to various service providers to manage waste at all Vilmorin & Cie sites in France, in order to rethink treatment needs and processes, and pool resources. This will make it possible to harmonize waste management and treatment in France for fiscal year 2018-2019. Numerous investments have been made to reduce waste production and insure its recycling and disposal, through more than 100 actions implemented since 2015, such as the installation of storage spaces, the purchase of shredders for organic waste, the purchase of sorting bins and the establishment of a partnership with a foundation to recycle batteries. Finally, in terms of treatment products, the construction of appropriate equipment has made it possible to minimize risks during storage, use or cleaning of materials. During fiscal year 2017-2018, HM.CLAUSE in Portes-lès-Valence, Limagrain Europe in Nérac, France, and Vilmorin-Mikado in Spain acquired such facilities. At the same time, the Limagrain Europe Business Unit continued its audits using the CALI (Chemistry Audit LImagrain) standard. CALI is an internal reference system based on regulations and company standards, the purpose of which is to enable compliance audits for chemical risk control to be conducted on the basis of a list of regulatory requirements and internal Limagrain Europe standards. These audits apply in the areas of Health & Safety, Facilities & Structures and Waste Management. Soil usage Soil represents Vilmorin & Cie's primary production resource. Whether production takes place in the field, in tunnels or greenhouses, the soil is always used as a support for the plants from which the seeds distributed by Vilmorin & Cie will be produced. However, impact on soils remains limited, as Vilmorin & Cie's global seed production requires approximately 55,000 hectares, equivalent to 0.3% of French arable land. Nevertheless, there is great heterogeneity between the different crops. Indeed, 75% of this area is used for field seeds, including 50% for corn seeds. 3,000 2,500 2,000 1,500 1,000 500 0 2.4 2.2 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 15-16 16-17 17-18 2,462 2,873 1,918 2.3 1.8 1.5 4.3. Conducting activities in an ethical, sustainable and effective manner HYDRANEO ® by Limagrain Europe, a unique tool for managing water stress Adapting seeds to local soil and weather conditions and improving resistance to disease and water stress is one of Vilmorin & Cie’s research priorities. For example, the concept LG HYDRANEO ® was developed with this objective in mind. Launched in 2015, it is the result of several years of collaboration between the research and marketing teams of the Business Unit Limagrain Europe. HYDRANEO ® aims to support farmers in the management of water stress, in a global way, by combining a plot risk diagnosis, tolerant corn varieties and adapted agronomic practices. 0.8 % Garden Products 76.7 % Field Seeds 22.5 % Vegetable Seeds Social, environmental and societal INFORMATION

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