BONDUELLE - 2016-2017 Financial Year Turnover: Sol

  BONDUELLE

A French SCA (Partnership Limited by Shares) with a capital of 56,000,000 Euros  Head Offices: La Woestyne 59173 Renescure, France 

Business registration number: 447 250 044 (Dunkerque Registrar of Businesses)  

2016-2017 Financial Year Turnover

Solid turnover growth in line with the annual objectives A dynamic activity in Q4 Change in the activity profile of Bonduelle with the acquisition of Ready Pac Foods

For the first time ever, the turnover of the Bonduelle Group exceeded € 2 billion over FY 2016-2017, fuelled by solid organic growth and the consolidation of Ready Pac Foods at the end of the FY. This performance reflects the group's strong resilience despite unfavorable circumstances - sluggishness of the consumption in Europe, economic crisis in emerging countries, difficult harvests - and its ability to seize promising growth opportunities. While consolidated for only a quarter, the acquisition of Ready Pac Foods has profoundly changed the group's profile, highlighting its international expansion via activities outside Europe and through the business development of its ready-to-eat segment, search for new sources of growth that are capital employed efficient.

Global Turnover

Activity by Geographic Region

Activity by Operating Segments

Over FY 2016-2017 (1 ^st of July 2016 - 30 ^th of June 2017), the group's turnover reached 2,288.1 million of Euro, an increase of 16.3% based on reported figures. This performance is the result of strong organic growth (+ 2.7%) at the higher end of the target range announced (+ 2 to + 3%), coupled with an exchange rate impact that finally turned positive (+ 1.-%) along with the Ready Pac Foods integration effective March 21 ^st . The fourth quarter, up by + 51.9%, recorded a rather strong organic growth of + 4.6%.

Europe Zone The Europe zone, representing 55.8% of this FY turnover, returned to growth + 0.2% both on reported figures and like for like basis*, driven by a dynamic fourth quarter recording + 1.6%. The lack of products due to the poor harvests observed in summer 2016 (cans and frozen) and early 2017 (fresh-cut bagged salads) has been partially offset by a sunny spring promoting the consumption of canned corn and fresh prepared products.

Non-Europe Zone The non-Europe zone, representing over this FY 44.2% of the turnover (due to the Ready Pac Foods's contribution over a quarter) recorded an increase of + 45.9% based on reported figures and 7.1% on a like for like basis*, given the favorable evolution of exchange rates (+ 3.1%) and the scope of consolidation. The strong performance of the canned and frozen segments in North America has been vitiated by the difficulties observed in emerging countries (namely in Brazil and Russia). In Russia, the slight pickup in the economic recovery is not yet translated into an increase in food consumption. Thanks to a wide offer of canned vegetables products (Bonduelle and Globus brands), the group has successfully maintained its market share and sales prices, and thus its profitability. Ready Pac Foods, now Bonduelle Fresh Americas, recorded very strong growth over this fourth quarter, hence continuing to improve its market penetration.

Highlights

Divestiture of the interest in Gelagri On June 23 ^rd 2017, the Bonduelle Group divested its minority interests in the Gelagri companies of France and Spain to Triskalia, its joint shareholder. Born from the respective contributions of the shareholders expertise in frozen for private labels, this joint venture enabled, via industrial efficiency gains, a sharp turnaround of the activity in terms of financial performance. The effect of this divestment will not have any significant impact on the group's results and cash flow on the 30th of June 2017.

Refinancing of Ready Pac Foods acquisition Bonduelle finalized, under particularly attractive conditions, the refinancing operations associated with the acquisition of Ready Pac Foods. On March 21 ^st , Bonduelle announced that it had fully completed the acquisition of Ready Pac Foods for a total amount of $ 409 million. This operation was financed through a bridge loan of $ 279 million with an initial term of one year and a $ 130 million amortizing bank loan with a five years maturity. This operation was carried out jointly with Crédit Agricole Nord de France and Crédit Agricole CIB. The successful syndication process with the pool of existing banks as well as with 3 new foreign banks, together with the particularly attractive margin conditions have led Bonduelle to increase the total amount of the bank loan from $ 130 million to $ 200 million. At the same time, looking for additional maturity, Bonduelle issued on July 6, 2017, a new Private Placement in the US market (USPP) split into 2 tranches of respectively € 150 million and $ 50 million. These two tranches both have a maturity of 10 years and bring the group's total debt average maturity to almost 5 years. Bonduelle, being a repeat issuer on the USPP market since 2000, has been able to deal this private placement under particularly competitive conditions both in euros and US dollars, from a pool of historical investors who have renewed its confidence in the group as well as a new investor. Bonduelle was advised by BNP Paribas and Natixis, acting as agents, and Willkie Farr & Gallagher as counsel. Through this operation, Bonduelle pursues its policy of partial disintermediation and diversification of its financing sources (banks, USPP, EuroPP,...) by further expanding its platform of both banking and non-bank financial partners, guaranteeing  independence and competitiveness of its indebtedness' cost, and thus reflects its post Ready Pac Foods acquisition investment grade profile.

Outlooks

Due to a dynamic activity observed in quarter 4, the group should record, at constant exchange rate and scope of consolidation, a current operating profitability close to the one recorded in FY 2015-2016, despite the impact of poor harvests in summer 2016. This performance, higher than the annual objectives announced in October 2016 and revised upwards in March 2017, will be strengthened by favorable exchange rates and the contribution, for roughly a quarter, of Ready Pac Foods.

* at constant scope of consolidation and exchange rates

Next financial event:

- 2016-2017 FY Results:                                                           2 ^nd of October 2017 (prior to stock exchange trading session)

About Bonduelle

Bonduelle, a family business, was established in 1853. Its mission is to be the world reference in "well-living" through vegetable products. Prioritising innovation and long-term vision, the group is diversifying its operations and geographical presence. Its vegetable, grown over more than 130,000 hectares all over the world, are sold in 100 countries under various brand names and through various distribution channels and technologies. Expert in agro-industry with 58 industrial sites or own agricultural production, Bonduelle produces quality products by selecting the best crop areas close to its customers. Bonduelle is listed on Euronext compartment B Euronext indices: CAC MID & SMALL - CAC ALL TRADABLE - CAC ALL SHARES Bonduelle is part of the Gaïa non-financial performance index and employee shareholder index (I.A.S.) Code ISIN : FR0000063935 - Code Reuters : BOND.PA - Code Bloomberg : BON FP

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