Vilmorin & Cie : Sales for the 3rd quarter 2021-2022 – Press release

Vilmorin & Cie SA

Public limited company with Board of Directors with a capital of 349,488,703 euros

Head Office: 4, Quai de la Mégisserie - F-75001 PARIS SIREN Paris 377 913 728

Fiscal year from July 1st to June 30th

Euronext Paris (Compartment A) - Eligible for Deferred Settlement Order Indices: CAC Small, CAC Mid & Small and CAC All-Tradable

May 4, 2022, at 6.30 pm CET

Sales on March 31,2022

Activity: fine performance in Field Seeds, in spite of an unfavorable general context that penalized Vegetable Seeds

News: update on the situation in Ukraine and in Russia

Objectives for 2021-2022: Vilmorin & Cie is making a second revision of its objectives for the end of fiscal year

Closing on March 31, 2022, Vilmorin & Cie's consolidated sales at the end of the third quarter 2021-2022, corresponding to revenue from ordinary activities, came to 1,158.4 million euros, up by 4.8% with current data and 4.0% on a like-for-like basis.

In millions of euros

2020-2021

2021-2022

Variation with current dataVariation on a like-for-like basis

Sales at the end of the third quarter

1,105.6

1,158.4

+4.8%

+4.0%

Vegetable Seeds

465.2

-2.2%

-3.0%

Field Seeds

591.9

+11.5%

+10.8%

Garden Products and Holdings

48.4

-10.9%

-10.6%

Consolidated financial information is established in compliance with the IFRS reference (International Financial Reporting Standards), as applied by the European Union on March 31, 2022.

Activity: fine performance in Field Seeds, in spite of an unfavorable general context that penalized Vegetable Seeds

Vegetable Seeds division

Over the course of the third quarter, the Vegetable Seeds division achieved sales of 203.7 million euros, down by 4.0% with current data, and 4.7% on a like-for-like basis, on the basis of a high benchmark - the third quarter for 2020-2021 had been marked by significant business growth for several strategic crops and throughout the different regions.

The quarter just ended was characterized by a distinct slowdown in the Vegetable Seeds business, particularly in March, due to a sluggish market, in a very tense economic and geopolitical environment. Against the backdrop of the Russia-Ukraine conflict, the surge in agricultural commodity prices and related demand has led to a partial shift from open field crop acreage to cereal production in some regions. This slowdown was accentuated by the low market value of market vegetable products, particularly for strategic or niche crops in Europe (carrot, cauliflower, witloof chicory, onion, crops for industrial processing). In addition, there has been an unprecedented increase in the price of agricultural inputs, as well as recurring problems of labor availability and access to water.

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Finally, comparable data for Vegetable Seeds remained affected by the stopping of the seedling activity in Japan, as well as that of the field seeds activity at the Business Unit Hazera (Vegetable Seeds. Israel).

Highlights per geographical zone

Beyond the direct consequences of the Russia-Ukraine conflict, Europe still faced climatic disparities between the north of the continent, where mild temperatures favored planting, and the south, which was colder and wetter - mainly on the Iberian Peninsula where planting was delayed.

In the Americas, the level of activity remained relatively stable. The persistent drought on the west coast of the United States prevented the initial production plans from being implemented, but there was significant demand for several crops (sweet pepper, bean, pumpkin and lettuce).

In the Middle East and Africa, economic and political instability is ongoing. Despite the sharp devaluation of its currency, Turkey continues to stand out thanks to strong export demand and advance orders for seeds to prevent any risk of breakdown in supply.

In Asia-Oceania, India has been experiencing an unusually high rate of returns due to a late monsoon in 2021. In Australia, floods have caused production delays and a reduction in cultivated acreage. Finally, the very strict lockdown measures decided in China in the face of the resumption of the Covid-19 epidemic have severely restricted activity on this market.

Highlights per crop

In a restricted environment, the impetus observed for several strategic crops is confirmation of the successful performance of Vilmorin & Cie's germplasm. Whether intended for the fresh market or for industry, tomato varieties were in great demand throughout the Americas. Sweet and hot peppers were also among the crops that progressed, particularly in Spain, Mexico and Tunisia. While carrot seed sales increased in Turkey and China, they declined or were pushed back in Europe, particularly in France.

With regard to local crops, kabocha squash, for example, has been growing strongly in South Korea, thanks to increased demand and a more competitive approach to the market. On the other hand, there is still less demand for fennel seed sales in Italy.

At the end of the third quarter, sales for the Vegetable Seeds division reached 455.0 million euros, down by 2.2% with current data. Restated on a like-for-like basis, business activity posted a drop of 3.0%, half of which can be explained by the stopping of the seedling activity in Japan and of the field seeds activity in Israel.

Field Seeds division

Over the third quarter, the Field Seeds division posted sales of 361.6 million euros, an increase of 7.1% both with current data and on a like-for-like basis.

Highlights in Europe

The Russia-Ukraine conflict, which is directly affecting the world's main sunflower production area and a major corn production area in Europe, disrupted business over the third quarter of 2021-2022. Seed sales for these two crops have thus been suffering the first consequences of the reduction in agricultural acreage in Ukraine - the extent of which is still difficult to assess - as well as the logistical difficulties in delivering orders, both in Ukraine and in Russia.

However, on the full scale of the continent, the corn campaign is looking very promising after a particularly successful month of March. Sunflower sales have dropped, but there are a number of opportunities expected in Western Europe. Finally, after a highly satisfactory fall campaign, the spring straw cereal campaign is off to a good start.

In spite of the upheaval caused by the Russia-Ukraine conflict, Vilmorin & Cie has once again demonstrated its capacity for resilience: on March 31, 2022, quarterly sales for Field Seeds in Europe reached 311.0 million euros, up by 2.2% with current data, and 3.2% on a like-for-like basis

Highlights in South America

The third quarter posted double-digit business growth, with sales reaching 45.7 million euros on March 31, 2022, an increase of 62.7% with current data, and 40.9% on a like-for-like basis.

In Brazil, the second corn campaign (safrinha) ended with a significant increase in sales, enabling Vilmorin & Cie to strongly increase its commercial positions in the country. Similarly, sales of soybean seeds increased significantly.

At the end of the third quarter, sales for the Field Seeds division amounted to 660.3 million euros, up 11.5% with current data. Restated on a like-for-like basis, business increased by 10.8%.

Highlights for associated companies

On the North American market, from the beginning of fiscal year 2021-2022, rising input prices constrained AgReliant's business as several North American farmers decided to defer their seed purchases. Finally, they gave more preference to soybean seeds: for the first time in many years, the area devoted to soybean seeds exceeded that of corn, with just over 36 million hectares. AgReliant's contribution was thus penalized by lower sales of corn and the lower margin level on soybean seeds, as well as by the general inflationary context.

On the African market, Seed Co posted dynamic business growth in all countries except Malawi and Zimbabwe, its base, because of changes to certain government programs.

News: update on the situation in Ukraine and in Russia

Vilmorin & Cie continues to support its 110 Ukrainian employees and their families, with whom daily contact has been maintained. More than 20 families have been hosted in neighbouring countries with the help of local teams.

In Ukraine, the Company insists on highlighting the full mobilization and remarkable commitment of its teams who, despite the many difficulties and risks involved, are doing everything possible to ensure business continuity. The bombing and logistical problems are severely restricting the capacity of customers (farmers and growers) to operate: as a result, agricultural acreage has been shrinking, particularly in corn and sunflower, to an extent that is still difficult to assess, and which will certainly not be compensated for in the rest of Europe.

In Russia, as stated at the beginning of the conflict, Vilmorin & Cie has maintained the flows adopted for the current campaign, considering its responsibility, as the fourth largest seed company worldwide, not to further compromise world food production. To date, activities in the country have been continuing almost normally, despite logistical constraints in the delivery of seed orders.

Objectives for 2021-2022: Vilmorin & Cie is making a second revision of its objectives for the end of fiscal year

The first nine months of fiscal year 2021-2022 ended with a decline in sales for Vegetable Seeds (-3.0%*) but a significant increase in business for Field Seeds (+10.8%*), in a context of persistent uncertainties related to the Russia-Ukraine conflict and the continuation of generalized inflationary pressure. In addition, the contribution of associated companies remained below expectations.

In order to take all these factors, Vilmorin & Cie is making a second revision of its objectives for the end of fiscal year 2021-2022. Consolidated sales are expected to grow by approximately 5%* (as opposed to at least 4%* previously) compared with fiscal year 2020-2021, with: growth close to 2%* for the Vegetable Seeds division (as opposed to growth close to 3%* previously);

growth of between 7 and 8%* for the Field Seeds division (as opposed to growth of 6%* previously).

The objective of the current operating margin rate, as adjusted at the end of December 2021, is confirmed: it stands at 7.5% at least, and includes research investment similar to that of the previous fiscal year.

Finally, Vilmorin & Cie has revised the contribution from associated companies - mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds) - to a level of no more than 20 million euros, which is significantly lower than the previous estimates. This revaluation is due in particular to unfavorable outlook in the North American market.

* On a like-for-like basis.

Coming disclosures and events	For any further information
Monday August 1, 2022(1)	Olivier FALUT
Disclosure of sales for fiscal year 2021-2022	Chief Financial Officer
Wednesday October 12, 2022(1)	Édouard ROCHE
Disclosure of results for fiscal year 2021-2022	Head of Financial Communication
and Investor Relations
Friday December 9, 2022
Annual General Meeting of Shareholders
Tel: + 33 (0) 473 634 008
email:[e-mail]
(1) Disclosure after trading on the Paris Stock Market.
Dates provided as an indication only, and liable to be changed.
www.vilmorincie.com

Vilmorin & Cie, the 4th largest seed company in the world, develops vegetable and field seeds with high added value, contributing to meeting global food requirements.

A multi-crop seed company, every year Vilmorin & Cie brings around 300 new varieties to market to meet the needs of all diverse types of agriculture and allow farmers to produce better and produce more.

Accompanied by its reference shareholder Limagrain, both an agricultural cooperative owned by French farmers and an international seed group, Vilmorin & Cie's strategy for growth relies on research and international development to durably strengthen its market shares on resilient world markets.

True, since its origins in 1743, to its vision of sustainable development, Vilmorin & Cie ensures its achievements fully respect its three founding values: progress, perseverance and cooperation.

You can consult a presentation of sales at the end of the third quarter 2021-2022 on the homepage of the websitewww.vilmorincie.com.