Vilmorin & Cie - Annual report 2017-2018

Management REPORT 3 Report of the Board of Directors to the Joint Annual General Meeting (Ordinary and Extraordinary) of December 7, 2018 ANNUAL REPORT Vilmorin & Cie 91 2017-2018 Investments and real estate policy Each fiscal year, as part of its budgetary procedures and mid-term plan, Vilmorin & Cie approves investments shared out between the Business Units. These investments are mainly devoted to the modernization of its research centers and the development of its global research network. Vilmorin & Cie also invests in its industrial facilities to guarantee the high quality of its products. For fiscal year 2017-2018, tangible investments came to 43.5 million euros. In line with the management guidelines for fiscal year 2017-2018, Vilmorin & Cie was vigilant with regard to its investment budget, giving priority to investments in research. For the investments managed, and depending on each case and each Business Unit concerned, funding is set up through a bank loan or by internal resources. More generally, Vilmorin & Cie’s investment policy gives priority to assets directly linked to the business; consequently, the Company does not own much real estate which is not directly linked to operations. Finally, it should be emphasized that Vilmorin & Cie has not adopted a pluri-annual investment program of a significant sum in proportion to investments made in recent fiscal years. Information on payment terms In application of the provisions of articles L.441-6-1 and D.441-4 of the French Commercial Code, we indicate hereafter the number and amount, all taxes included, of invoices received and issued that had not been not settled at the end of the fiscal year, and for which the due date had passed. Article D.441 I.-1: Invoices received and not settled at the date of the end of the fiscal year, and for which the due date had passed Article D.441 I.-2: Invoices issued and not settled at the date of the end of the fiscal year, and for which the due date had passed 0 day 1 to 30 days 31 to 60 days 61 to 90 days 91 days and more Total (1 day and more) 0 day 1 to 30 days 31 to 60 days 61 to 90 days 91 days and more Total (1 day and more) (A) Overdue payment brackets Number of invoices concerned 618 210 82 69 Total amount of invoices concerned, VAT tax included, in euros 11,841,658.75 1,428,454.06 163,800.27 28,508.42 267,698.55 1,888,461.30 1,759,364.93 1,745,235.48 89,197.34 201,293.58 2,032,421.51 4,068,147.91 Percentage of the total amount of purchases, VAT tax included, for the fiscal year 12.51% 1.51% 0.17% 0.03% 0.28% 2.00% Percentage of sales, VAT tax included, for the fiscal year 1.49% 1.48% 0.08% 0.17% 1.72% 3.45% (B) Invoices excluded from (A) concerning debts and receivables in litigation or not recorded in the accounts Number of invoices excluded None None Total amount of invoices excluded None None (C) Reference payment terms used (contractual or legal deadline – article L.441-6 or article L.443-1 of the French Commercial Code) Payment terms used to calculate late payment Contractual deadlines: up to 45 days end of the month; otherwise legal deadlines: 30 days net Contractual deadlines: 30 days net