Delivering on our strategy Annual Report & Audited Consolidated Financial Statements Contents 02 At a glance Driven by Financial our purpose statements 06 48 Message from Management discussion our Chairperson & analysis 08 49 Our purpose in practice Income statement analysis 51 Creating fair & sustainable value Balance sheet analysis 12 55 Message from our CEO Independent auditor’s report 14 58 Strategy: looking to a Consolidated income future LDC statement 16 59 Our business fundamentals Consolidated statement of comprehensive income 24 Fundamentally sustainable 60 Consolidated balance sheet 2018 62 year in review Consolidated statement 30 of cash flows 2018 Milestones 63 34 Consolidated statement Platforms of changes in equity Value Chain Segment 64 36 Notes to consolidated Platforms financial statements Merchandizing Segment 114 38 Governance Regional overview 40 Our regions in depth Unless otherwise indicated, “Louis Dreyfus Company”, “LDC”, “Group”, “Louis Dreyfus Company Group” and related terms such as “our”,“we”, etc. used in this Annual Report refers to the Louis Dreyfus Company B.V. Group. Annual Report & Audited Consolidated Financial Statements 2018 1 Moscow Calgary Rotterdam Wittenberg North America Antwerpen Warsaw London Kiev Ghent Paris Grand Junction Ürümqi Norfolk Geneva Milano Chicago Lyon Sofia Krasnodar Shymkent Beijing Claypool Kansas City Wilton Fresno Lisbon Madrid Istanbul Cordova North Asia Lubbock Shanghai Port Wentworth Sugar Winter Garden Alexandria Gurgaon Land Europe, Dubai Karachi Kunming At a glance Middle East Mexico D.F. & Africa Villanueva ca. Dakar Bangalore Ho Chi Minh South & North Lagos 18,000 Bogotá Abidjan Southeast Latin Klang Kampala Asia Employees America Tema Singapore Louis Dreyfus Company worldwide Nairobi Mombasa Jakarta is a leading merchant and Lima processor of agricultural Lusaka goods, leveraging its global South & West São Paulo Johannesburg reach and extensive asset Latin America Asunción Santos network to deliver for our Brisbane customers around the Rosario Key Montevideo world – safely, responsibly Grains & Oilseeds Buenos Aires and reliably. Rice 6 Melbourne Coffee Regions Cotton Sugar Juice Dairy Offices Financial Highlights Value Chain Segment Merchandizing Segment Sustainability Focus Net Income – Segment Net Sales Continuing operations Operating Results1 Grains Coffee 100% Mill-level traceability of US$36.5b 44.2% 25.8% Oilseeds Cotton LDC-processed palm US$38.0 billion in 2017 US$323 million US$1,330 million US$224 million in 2017 US$1,057 million in 2017 Juice Sugar -57% Incident frequency reduction EBITDA2 from Net Income, since 2014 continuing operations Group Share Freight Rice over 700% % % 31.0 12.0 1. Gross margin plus share of income growth in Better Cotton purchased US$1,048 million US$355 million in associates and joint ventures. Global Markets Dairy 2. Earnings Before Interest, Taxes, US$800 million in 2017 US$317 million in 2017 Depreciation & Amortization. We develop sustainable LDC’s solutions to bring agricultural goods from where they are Value Chain grown to our customers’ doorstep. This involves a complex supply chain in which Originate Process Store Research Customize our people and partners play a & Produce & Refine & Transport & Merchandize & Distribute vital role, ensuring a smooth Sharing our expertise with Processing and refining the Efficiently managing Relying on our market Supplying products to a journey for our products. farmers and producers worldwide, finest quality raw materials. movements across the knowledge to ensure range of customers, from be it through partnerships or our value chain. responsive supply across multinationals to local origination network. platforms and regions. customers and end consumers. 2 Louis Dreyfus Company Annual Report & Audited Consolidated Financial Statements 2018 3 Driven by our purpose 06 Message from our Chairperson 08 Our purpose in practice 4 Louis Dreyfus Company Annual Report & Audited Consolidated Financial Statements 2018 5 Driven by our Purpose Create Fair & Sustainable Value 2018 Year in Review Financial Statements Pursuing our purpose Message from Margarita Louis-Dreyfus LDC achieved excellent results We are nevertheless determined to reach Taking the next steps our destination and have traced the route As a family enterprise operating since 1851, in 2018, confirming the ability we wish to take to address the broad a long-term perspective and a strong set We are of our teams to adapt to repercussions of our company purpose: of values are part of our identity and have change, focus on priorities been crucial to our success over 168 years. and prepare for the long term. • Providing our customers and business I am determined to preserve and grow that partners with products, tools and heritage over the years to come. committed resources that help them prosper, while Our performance positions us well for our consistently balancing long-term value I am therefore pleased and proud to say next phase of growth, as we evolve into an creation with short-term profitability. that LDC is becoming a purpose-driven integrated and diversified food and nutrition company. We are linking our past and to supporting the company, mastering the value chain from • Running operations that go beyond future, blending value creation with end to end. compliance with safety and environmental fairness and sustainability across our regulations and requirements, measuring organization. I am convinced that this will Rising to pressing global challenges and constantly improving our impact. be an integral part of our future success communities we This important evolution is key to our and in taking our responsibility to create long-standing vision to work toward a • Providing attractive remuneration and win-win outcomes across our value chains safe and sustainable future, contributing growth opportunities for our people, – for people and for the environment. to the global effort to provide sustenance and ensuring we attract the right talent for a growing population. It may sound in the market. At the same time, it is obvious that no one serve, through company, organization or individual can grand, but as a key player in the agricultural commodities sector, that is what we strive • Having a positive impact on the solve the many challenges alone. It is my to do – profitably, reliably and sustainably. communities we touch, developing personal conviction, and a strong part of their economies, hiring and helping to LDC’s culture, that only collaboration and fair & sustainable Our vision places us at the heart of some grow their talent, and respecting their teamwork achieve the best results. So we of the world’s most pressing challenges, social context. will continue to pay particular attention from climate change and environmental to partnerships and cooperation with conservation, to the fight against poverty Defining actions together a wide range of stakeholders – peers, value creation and for the protection of human rights. As part of our work to structure and governments, industry associations, integrate our purpose, during 2018 we international organizations, NGOs, and I am extremely conscious that this puts gave the opportunity to our people across many others. a big responsibility on our shoulders, and the company to share their input, insights it is within this context that our company and suggestions on how to ensure that our Our leadership team has embraced this purpose to create fair and sustainable value purpose is part of our everyday actions. vision with conviction and energy. Like takes on its full meaning. This is important From that feedback, a framework has been me, they believe that a purpose-driven for LDC collectively, and for me personally developed to put fair and sustainable value organization can better mobilize its in my role as chairperson. at the core of everything we do. people to focus on what really matters: reinforcing relationships with customers Creating fair & sustainable value The initiative explored challenges and and other stakeholders, driving innovation To fulfill our purpose, LDC needs to opportunities, keeping in mind how we and entrepreneurship, and successfully master the value chain through greater can leverage LDC’s values, heritage and transforming our company for the long integration and control, and to remain a culture for success. Key action areas of term. Our senior managers will drive strong economic actor. Together, these global relevance were defined across four the plans laid out in the coming pages, factors will drive our success in creating dimensions: developing people, growing acting as the principal sponsors for a fair and sustainable value, and determine with stakeholders, nurturing communities transformation that must take place in all our ability to influence positive change. and protecting the environment. aspects of our business and engage the commitment of all our people, everywhere. Our 2018 results and the progress By the end of the year, these dimensions As an active and reliable global citizen, described in this annual report demonstrate had been translated into an action plan, we at LDC take our responsibility in our that we are on the right track. And for that aiming to drive positive change through everyday actions. we can be extremely proud. At the same 5 key areas: Industry Leadership, People time, there is still quite a way to go, and Engagement, Business Excellence, we are acutely aware that finding solutions Sustainability & SHE (Safety, Health,