Vilmorin & Cie - Annual report 2017-2018

1 ANNUAL REPORT Vilmorin & Cie 31 2017-2018 Furthermore, in the United States, implementation of the partnership signed at the beginning of 2016 with the Colorado Wheat Research Foundation and the company Albaugh (1) is continuing. This technological and commercial agreement targets the development of wheat varieties with a non-GMO* trait conferring resistance to a generic herbicide. The process for marketing these wheat varieties, which represent a new, innovative solution for wheat producers, is making good progress and Vilmorin & Cie is expecting the first sales by 2020. This world partnership also involves an exclusive license granted to Vilmorin & Cie, with the commitment to deploy the use of the technology outside the United States. In Canada, Vilmorin & Cie is pursuing the development of its research program through the joint venture Limagrain Cereals Research Canada (2) , specialized in the development and breeding* of cereal crops. Created in July 2015 with the Canadian company Canterra Seeds, this joint venture will ultimately bring significant added value to western Canadian agriculture by developing new varieties of cereal crops, with a specific focus on wheat, using the most advanced technologies. This creation was made possible in a context where the Canadian government adjusted its legislation, which, in the coming years, should result in the application of royalties* on wheat seeds, and which should place Canada among the top world players for this crop. 1.4.3. Garden Products Vilmorin & Cie offers home gardeners a full range of seeds (vegetable, flower and lawn) and associated products: flower bulbs, products for soil and plant nutrition and garden equipment. Vilmorin & Cie's commercial offer was expanded and diversified in 2017-2018, illustrating the reorientation of the marketing strategy initiated during the previous financial year. Vilmorin & Cie's objective is to become the partner of all gardeners in their garden experience. The Garden Products division’s customers comprise all the garden product distribution networks: garden centers, home improvement stores and supermarkets. Vilmorin & Cie’s product line-up is also sold online through different websites of pure play garden specialists and online sales to consumers. The Garden Products division is structured around the Business Unit Vilmorin Jardin. 1.4.3.1. Key advantages: solid expertise and a strong brand, Vilmorin Vilmorin & Cie permanently develops innovations to anticipate and meet the needs of consumers who are seeking efficient, easy-to- use solutions, and guaranteeing success for their vegetable and decorative flower gardens. Notions of pleasure and fun experiences are also playing a greater role today in consumer choices. Drawing on its expertise and its emblematic Vilmorin brand, the Garden Products division expanded its commercial offer during the year, for example offering plants marketed under the Vilmorin brand, a specific range for balconies and terraces and indoor gardens dedicated to small spaces. Vilmorin & Cie is thus strengthening its presence in all the solutions offered to home gardeners, around its Vilmorin brand. Moreover, the Garden Products division relies on the technical expertise of the Vegetable Seeds division to succeed in its strategy of innovation. 1.4.3.2. Performances and highlights in 2017-2018: a fiscal year with results down on a market for seed packets in decline Sales for the Garden Products division came to 48.7 million euros on June 30, 2018, down by 4.2% on a like-for-like basis. The Garden Products division thus once again had a difficult year. The decline in seed packet sales was marked, largely impacted by a bearish market environment: the market for seed packets for home gardeners has been in continuous erosion for several years. On the other hand, Vilmorin & Cie recorded very strong growth in amenity grass seed sales as a result of the revamping of the Vilmorin branded range and the acquisition of private label market shares. The year was also difficult in Poland and the Netherlands, but the Garden Products division nevertheless achieved a very good commercial performance in Turkey in 2017-2018. (1) Company specialized in generic products for plant production. (2) A joint venture located in Saskatoon (Province of Saskatchewan. Canada) and held 70% by Vilmorin & Cie and 30% by Canterra Seeds. Furthermore Vilmorin & Cie holds 30% of the capital stock of the company Canterra Seeds. 48.7 million euros (-4.2% on a like-for-like basis) Garden Products sales in 2017-2018 Garden Products Main brands 1.4. Activities PRESENTATION of Vilmorin & Cie