Vilmorin & Cie - Annual report 2017-2018

1 ANNUAL REPORT Vilmorin & Cie 57 2017-2018 On June 30, 2018, the Company had identified no litigation that might affect its financial situation significantly. On September 5, 2018, Vilmorin & Cie was called by Arcadia Biosciences to appear before the New-York state court for failure to respect confidentiality agreements signed in 2009. The origin of this litigation lies in another litigation arising in 2017 between Arista Cereal Technologies (a sister company of Vilmorin & Cie) and Arcadia Biosciences before the United States Patent and Trademark Office (USPTO) as part of legal proceedings against Arista’s patent of one of their technologies (high-fiber wheat). On August 14, 2018, the U.S. Patent Office ruled in favor of Arista and rejected the claims of Arcadia Biosciences concerning Arista’s patent. The above-described proceedings have not led to any provision being made, since the group is not in a position to assess the financial risk at this initial stage. To the knowledge of the company, there is no other governmental, judiciary or arbitration procedure in progress, or threatening to arise, concerning the past twelve months, that is liable to have, or indeed has had, any significant effects on the financial situation or profitability of the Company and/or the group. Important contracts outside the normal course of business Vilmorin & Cie runs its business activities through a large number of suppliers and a diversified clientele. Within the framework of its activities, Vilmorin & Cie uses specific technologies formalized by pluriannual contracts. With the exception of these pluriannual, contractual relations, for which Vilmorin & Cie has alternative solutions, there is no other important contract outside the normal course of business that is liable to have a significant and recurring impact on its financial profile. 1.7.3.5. Risks related to human resources Identification of the risk One of Vilmorin & Cie’s challenges lies in its capacity to attract and retain talents in all the countries where the group has locations. Vilmorin & Cie’s long-lasting success is related to its performance level in innovation, and relies on certain professions, particularly those related to research activities, requiring specific expertise. Any difficulty in attracting or retaining staff with such skills could have a negative impact on the development of the group’s activities and results. Managing the risk In liaison with its reference shareholder Limagrain, Vilmorin & Cie is pursuing the development of its employer brand to broaden its visibility and attractiveness: partnerships with schools, social networks, student forums, relations with companies, etc. Furthermore, Vilmorin & Cie has a diversified global compensation system including the redistribution of income through profit sharing to all employees. For staff working in French companies there is also an employee savings scheme. In this respect, a new group profit-sharing scheme was introduced during fiscal year 2016-2017, with the objective of better redistribution of profits to all employees. It is characterized by a significant increase in the group’s share and greater consistency in the amounts distributed between each company. This information is presented in detail in Chapter 4, page 113. At the same time, Vilmorin & Cie is gradually completing its plan by embarking on a process of integrating all employees into its social protection offer in health and welfare. This information is presented in detail in Chapter 4, page 114. The aim of the Group Careers Committee is to promote internal mobility and offer perspectives for career evolution to employees. Vilmorin & Cie encourages international mobility to support its activities throughout the world by providing the opportunity to future employees to benefit from international professional experience through international volunteer programs (VIE). Finally, Vilmorin & Cie invests heavily in training, so that employees can keep right up to date with their expertise, develop new skills, and thus continue to enrich themselves intellectually, which is a key factor for retaining staff, especially those working in research. By combining social and sustainable performance, Vilmorin & Cie promotes attachment to the group’s values of progress, perseverance and cooperation, thereby developing employee loyalty. Vilmorin & Cie’s strong involvement in social actions in the world demonstrates its commitments. This information is presented in detail in Chapter 4 starting on page 134. 1.7.3.6. Risks related to the safety of persons and property Identification of the risk Vilmorin & Cie employs more than 6,600 permanent employees in 48 countries, working in various conditions and environments. 1.7. Risk factors PRESENTATION of Vilmorin & Cie