Unless otherwise indicated, “Louis Dreyfus Company”, “LDC”, “Group”, “Louis Dreyfus Company Group” and related terms such as “our”,“we”, etc. used in this report refers to the Louis Dreyfus Company B.V. Group.

3

As a leading global merchant and processor of agricultural goods, we rely on our expertise and global network to source, transform and transport approximately 80 million tons of products for customers and consumers around the world, every year.

We develop sustainable solutions to bring agricultural goods from where they are grown to where they are needed. This involves a complex chain in which our people and partners play a vital role, ensuring a smooth journey for our products and adding value along the way.

1. Originate & Produce

Sharing our expertise with farmers and producers throughout our global origination network.

2. Process & Refine

Processing and refining the finest quality agricultural materials.

4

3. Store & Transport

Efficiently managing logistics across the value chain.

4. Research & Merchandize

Leveraging our market knowledge to ensure reliable and responsive supply.

5. Customize & Distribute

Tailoring and delivering products to a range of customers, from multinationals to local enterprises and final consumers.

5

From the first consignment of grain delivered to Switzerland by our founder in 1851, LDC has been on a mission to deliver the right product to the right place, at the right time - safely, reliably and responsibly.

Over more than 170 years, our family business has transformed, but that mission remains the same, guided by a shared purpose to create fair and sustainable value for the benefit of current and future generations.

Indeed, our business has grown in scale and complexity, and so have the challenges we face. In 2023, persistent supply chain disruptions and ongoing geopolitical tensions contributed to an uncertain global trade environment, compounded by increasingly urgent climate-related challenges - not only for agricultural production, but for society at large.

In this context, we have continued to fulfill our mission, successfully keeping essential food, feed, fiber and ingredient supply chains moving, while pursuing our sustainability commitments.

The case for accelerated efforts toward more sustainable food and agricultural production has never been more compelling and, recognizing the key role of global agricultural merchants like LDC in that journey, I am pleased with the strides we are making on LDC’s sustainability journey, thanks to our teams across the Group.

In 2023, we took steps to accelerate LDC’s decarbonization trajectory, setting an emissions reduction target, linking our financing model with this and other environmental performance indicators, and taking action across our global operations to advance toward our goal. We also advanced on our trajectory to drive more sustainable land use in our supply chains, reinforcing our governance frameworks and investing to drive greater traceability across our product lines, as a basis for responsible sourcing decisions.

6

7

That culture is nurtured and honed by each person that is part of the global team at LDC, and I am extremely grateful to each of them for their commitment and efforts - around the world and around the year - to actively champion the values that underpin it: the courage to be entrepreneurial, embracing new ideas, technologies and solutions; the ability to forge lasting relationships with all our stakeholders, built on trust; the determination to strive for excellence in everything we do, maximizing value creation and positive impacts, for ourselves and the people and communities we touch worldwide; and the will to work together, as one global team, for a fair and sustainable future.

I take this opportunity to thank all our teams again for their passion and consummate professionalism in 2023, counting on them to continue pulling together as we move forward, and to thank all our partners and stakeholders for their continued collaboration with LDC, in our work to shape a resilient future for food and agricultural production, and provide sustenance for a growing global population.

Margarita Louis-Dreyfus

Chairperson

Importantly for both decarbonization and more sustainable land use, we also continued to act at the heart of the food and agricultural chain: in the field, with farmers. Recognizing that our impact is greater when we work in collaboration with others, we continued to work with the Louis Dreyfus Foundation and a range of other partners in 2023 – suppliers, peers, governments, NGOs and other stakeholders – to support farmers in adopting more sustainable and regenerative agricultural practices as a path to long-term resilience, for themselves, their communities, and the ecosystems we all rely on.

In a world with an exponential pace of innovation, maintaining the agility to embrace and adapt to change is also an essential ingredient for lasting success. Innovation is not a new concept at LDC - we have adapted, updated and transformed continually since our first steps in 1851, driven by the entrepreneurial spirit of our founder, Léopold Louis-Dreyfus. This spirit, and likewise the company culture we have forged over generations, has been the backbone of our achievements to date - and I am convinced it must also be a foundation for our future success.

Although market volatility decreased compared to the previous year, uncertainty over crop size prospects, geopolitical tensions and protectionist trade policies, as well as significant currency fluctuations, continued to disrupt markets and trade flows.

Successfully navigating this complex environment thanks to our global network, market insight and risk management capabilities, as well as an ongoing drive for cost and operational efficiency, LDC continued to fulfill its role to keep essential food and agricultural supply chains moving, delivering reliably for our customers worldwide and achieving solid results for 2023.

Net sales amounted to US$50.6 billion, Segment Operating Results were stable year on year at just over US$2.6 billion, with positive contributions from both business segments, and EBITDA exceeded US$2.2 billion. Meanwhile, capital expenditure increased to US$636 million in 2023, reflecting our continued pursuit of LDC’s strategic growth plans.

Growth Plans in Motion

We continued to reinforce our core merchandizing activities with actions to establish new flows - for example, becoming the first company to export bulk lime not-from-concentrate (NFC) and frozen concentrate juices from Brazil to Europe and the US, and facilitating South Africa’s first-ever bulk soybeans exports to China. We also reinforced our presence and operational capacity in existing markets: we completed the acquisition of a sugar export terminal in Brazil and expanded ethanol operations in the country, grew our presence in Australian cotton through a joint venture agreement to provide gin management services, added Grains & Oilseeds processing capacity at our Zhangjiagang and Fuling Food Industrial Park facilities in China, broke ground on the expansion of our canola processing complex in Canada, and announced the construction of a new soy processing plant in the US.

In 2023, we also invested in facilities and activities supporting our expansion further downstream and revenue stream diversification. We inaugurated a joint venture freeze-dried instant coffee plant in Vietnam, announced the expansion of our complex in Lampung, Indonesia to add glycerin refining activities, and launched bottled juices for distribution under a third-party brand in China, showcased at the 2023 China International Import Expo alongside our growing cooking oil range, specialty feed proteins, plant-based ingredients and other innovative products.

2023 continued to present a complex commercial environment, marked by accelerating climate challenges and ongoing geopolitical tensions that continued to affect trade flows and fuel macroeconomic uncertainty, compounded by tightened monetary policy, as central banks sought to curb inflation. In this context, we continued to deliver a robust business performance, advance our strategic growth plans and make headway in our journey to shape more sustainable food and agricultural value chains.

9

Michael Gelchie

Chief Executive Officer

And indeed, innovation being a key driver of competitiveness and sustainability, in 2023 we also formed a central Innovation team to drive focused innovation across the Group for maximum impact and transversal value. Supporting the growth trajectory of our newest Food & Feed Solutions Platform by addressing evolving customer trends and expectations, we also opened a state-of-the-art R&D center in Shanghai, China, where a team of experts leverage cutting-edge technology to develop safe, sustainable and nutritious plant-based protein products and ingredients.

The new center works in parallel to our existing R&D center in California, US, which filed several patents for next-generation, high-quality, non-GMO protein isolates in 2023, as part of an expanding Plant Proteins business portfolio, with planned investments in production at scale in Canada, announced at the start of this year.

In a rapidly evolving technology landscape, our digitalization journey is also well underway toward a more connected and responsive LDC, to better support our teams and customers alike by driving operational efficiency, supply chain traceability and data-driven business decisions.

Stand for Sustainability

Sustainability being an integral part of our company DNA and recognizing the increasing urgency to address global climate challenges collaboratively, in 2023 we continued to make important progress in our sustainability roadmap - in specific business lines, as outlined in our responsible business section, and also Group-wide.

Working from the materiality assessment undertaken in 2022, our newly deployed executive-level Sustainability Committee oversaw the definition of our sustainability strategy, as well as the launch of our Human & Labor Rights framework and global Supplier Code of Conduct, as part of efforts to further reinforce our sustainability governance framework.

Building on baselining work during the previous year, our Carbon Solutions team delivered a detailed climate transition plan to set LDC on a deep decarbonization path, leading to our near-term target to reduce Scope 1 and 2 emissions by 2030, announced in March 2023, and the calculation of LDC’s global Scope 3 emissions footprint relative to our 2022 baseline year.

In addition to driving operational efficiencies, and thereby contributing to ongoing cost optimization efforts, our substantial capital expenditure in asset improvement and industrial automation initiatives also led to water usage and emissions reductions across our facilities and processes.

We also established a dedicated global team to define and drive the development of our regenerative agriculture strategy at scale, building up to an important collaboration with The Nature Conservancy announced in January 2024, as a lever in the pursuit of our zero-deforestation and conversion

commitment. Equally, we accelerated efforts to drive supply chain traceability, as a basis for responsible sourcing decisions and in readiness for compliance with new deforestation-related regulations.

In this sense, we also continued to engage with, support and incentivize tens of thousands of farmers globally to adopt sustainable agricultural practices as a path toward improved livelihoods, while conserving natural ecosystems, soils and biodiversity for the long term.

Finally, the safety and well-being of our people remains a top priority for LDC, and 2023 saw record investments in risk-mitigation measures and awareness campaigns, a significant portion of which geared toward improving process safety, to protect our teams everywhere.

Looking Ahead

As governments, consumers, partners and other stakeholders increasingly prioritize sustainable practices in their choices and actions, the long-term success, growth and resilience of our business is inextricably linked to our ability to carry out our business in a way that ensures fair and sustainable outcomes across value chains.

Our sustainability efforts outlined above, and the many others detailed in this report, are therefore not just important in their own right, but crucial enablers of business longevity - and looking ahead, I am convinced that LDC’s enduring commitment to growing our business through fair and sustainable value creation will position us for success in the future.

I would like to take this opportunity to thank all our teams for their continual efforts to live up to this commitment each day, and for the hard work and dedication that contributed to LDC’s successful delivery in 2023. I am confident that if we remain focused on the pursuit of our ambitious and transformative plans, while staying true to our convictions, we will continue to deliver successfully in 2024 and beyond - for and with our customers and many business partners around the world, whose enduring trust and support we are very grateful for.

12

Financial Highlights

14

Message From Our CFO

16

Foreword

17

Income Statement Analysis

19

Balance Sheet Analysis

10

12

For the year ended December 31, 2023

Net Sales: 

US$50.6 billion
(US$59.9 billion for the year 2022)

Segment Operating Results1:

US$2,607 million
(US$2,611 million for the year 2022)

EBITDA2: 

US$2,222 million
(US$2,347 million for the year 2022)

Return On Equity3, Group Share:

16.6%
(18.7% for the year 2022)

Working Capital Usage: 

US$7.3 billion  

(US$7.3 billion as of December 31, 2022)

Total Assets: 

US$22.1 billion 

(US$21.6 billion as of December 31, 2022)

Adjusted Net Debt: 

US$0.1 billion

(US$0.4 billion as of December 31, 2022)

Net Income, Group Share:

US$1,013 million 
(US$1,006 million for the year 2022)

Capital Expenditure4: 

US$636 million 
(US$549 million for the year 2022)

Adjusted Leverage5 Ratio:

0.1x
(0.2x as of December 31, 2022)

Adjusted Net Gearing6:

0.02
(0.07 as of December 31, 2022)

Volumes7:

down 3.5%
year on year

Liquidity Coverage8: 

5.2x current portion of debt

(3.7x as of December 31, 2022)

Income Before Tax: 

US$1,208 million 

(US$1,226 million for the year 2022)

13

4 Purchase of fixed assets and additional investments, net of cash acquired

5 Adjusted net debt to EBITDA

6 Adjusted net debt to total stockholders’ equity and non-controlling interests

7 Volumes shipped to destination

8 Cash and cash equivalents, other current financial assets at fair value, readily

marketable inventories (RMIs) and undrawn committed bank lines

In 2023, our ongoing efforts toward cost efficiency and process improvements helped the Group secure a stable financial performance, in a market environment marked by lower volatility, and a slowdown in global growth. With a strong balance sheet and steady cash flow generation from our core operations, we grew investments in 2023 and engaged in large projects to grow our business sustainably.

Both of our business segments contributed to LDC’s strong financial performance in 2023, delivering Segment Operating Results (SOR) and EBITDA at US$2,607 million and US$2,222 million respectively. Value Chain SOR improved year on year, thanks to a solid global footprint and strong processing margins for Grains & Oilseeds and improved margins in Juice thanks to a recovery in prices and operational process improvements. Merchandizing SOR were driven by globally diversified origination capabilities for Cotton and Rice, combined with a successful hedging strategy for Sugar and Coffee.

This year again, our diversified business portfolio and global presence at both origin and destination were instrumental in consolidating our strong financial performance in a challenging context marked by the ongoing Russia-Ukraine crisis and climate extremes affecting crop size and quality in certain areas of the world, particularly Argentina. Leveraging our core strengths, we once again met our commitments to our customers while fulfilling our key role for supply chain continuity.

In an inflationary context that saw a strong rise in interest rates, we successfully controlled finance costs thanks to our efficient funding model, tailored for our operations. We leveraged long term debt raised several years ago at competitive interest rates, thanks to our S&P Global Ratings investment-grade rating and the flexibility of our diversified sources of funding. In addition, we closely monitored our funding needs as we also benefited from strong cash flow generated from our operations. 

14

15

Our strong operating results, combined with managed cost of debt, enabled us to deliver another very satisfactory return on equity this year, at 16.6%.

In 2023, we also increased capital expenditure by 15.8%, reaching US$636 million for the year. In addition to continued investments in improvements and maintenance of our existing facilities, we began investing in significant projects for the expansion of our processing capabilities in Canada, US and China, supporting growth in core merchandizing activities as well as our downstream diversification journey, with further investments to come, including the construction of a pea protein isolate production plant at the site of our existing industrial complex in Canada, announced in February 2024. We also continued to invest in our processes and people, supporting sustainability, internal control and digital transformation efforts, as part of LDC’s global growth strategy.

Our strong operational performance and cash flow generated in 2023 contributed to further deleveraging our balance sheet, with adjusted leverage ratio at 0.1x and adjusted net gearing down to 0.02 as of December 31, 2023. Our liquidity position as of December 31, 2023 increased compared to December 31, 2022, with US$11.6 billion of available liquidity, resulting in a coverage of 5.2x the current portion of debt.

In 2023, we reinforced LDC’s sustainability-linked financing model, raising the ambition of our environmental commitments through new key performance indicators embedded in our Revolving Credit Facilities. These indicators were supported by a Second Party Opinion report in line with the Sustainability Linked Loan Principles, confirming the ambition and materiality of our commitments for the agri-commodities industry.

Thanks to a strong operating performance, driven by our teams’ expertise and excellent delivery, LDC’s Group equity reached US$6.6 billion as of December 31, 2023, the highest level in our history so far.

We are confident that our sound balance sheet structure and well-established operational capabilities will ensure our ability to address future challenges and delivery on our ambitious growth plans for LDC.

Patrick Treuer

Chief Financial Officer

As announced on April 3, 2023, the Group ceased grain exports from Russia and has been engaged in a sale process of its existing business and assets in Russia (“Russian business”) on terms that satisfy the requirements of the Russian authorities. As of December 31, 2023, the Group performed a reassessment of control as defined by IFRS 10, and considering facts and circumstances, the Group concluded on a loss of control and deconsolidated its Russian business. As a consequence, the Group recorded a US$(60) million loss (including US$(33) million foreign currency translation adjustment recycling from OCI) in the line "Other gains and losses" of the consolidated income statement.

In 2023, the Group continued to take significant and concrete steps to advance its commitment to shaping more sustainable value chains. We set out a new global sustainability strategy around six core priority areas, leveraging the materiality assessment conducted in 2022.

As part of our commitment to eliminate deforestation and native vegetation conversion for agricultural purposes from our supply chains by the end of 2025, we continued to strengthen in-house monitoring capabilities - across the Group and in specific supply chains, including by means of external satellite monitoring tools.

As part of the Group’s decarbonization journey, LDC also announced in March 2023, a 33.6% reduction target for its Scope 1 & 2 greenhouse gas emissions by 2030, compared to its 2022 baseline year. In line with this trajectory, in 2023, the Group achieved a 4.7% reduction in Scope 1 & 2 emissions year on year.

Our Carbon Solutions team also calculated LDC’s Scope 3 emissions for the first time, in relation to the year 2022, as a basis to set reduction targets for Scope 3 emissions.

In July 2023, LDC reported for the first time through the CDP Climate Change questionnaire, the world's largest reporting framework for corporate disclosure on climate change strategies, risks and opportunities, and was granted a B rating.

During 2023, the Group reinforced its sustainability governance with the adoption of its Human & Labor Rights Policy, which formalizes LDC’s commitment to upholding human and labor rights in its operations and supply chains, and its global Supplier Code of Conduct, which sets minimum sustainability standards applicable to all LDC suppliers, in relation to environmental and social matters.

The Group also continued to engage and empower farming communities to adopt sustainable practices, helping to preserve the environment while improving farmers' livelihoods for the long term, through multiple projects and initiatives around the world.

16

In a global trade environment that saw persistent geopolitical, macroeconomic and environmental challenges, LDC delivered resilient results thanks to expertise and experience, diversified business portfolio, global presence and network, supported by ongoing efforts to drive process and cost optimization and efficiency.

Segment Operating Results amounted to US$2,607 million for the year ended December 31, 2023, stable compared to US$2,611 million for the year ended December 31, 2022, and EBITDA reached US$2,222 million, compared to US$2,347 million for the year ended December 31, 2022.

Income Before Tax for the year ended December 31, 2023 reached US$1,208 million, while Net Income, Group Share landed at US$1,013 million, compared to US$1,226 million and US$1,006 million respectively in 2022.

Net Sales

Net Sales amounted to US$50.6 billion for the year ended December 31, 2023, compared to US$59.9 billion in 2022, mainly reflecting lower average prices of the main commodities traded by the Group, with the exception of Robusta coffee, sugar, rice and citrus juices. Volumes shipped by the Group decreased 3.5% year on year.

•The Value Chain Segment’s net sales decreased 11.4% year on year, mainly owing to the lower price environment throughout the period for grains and oilseeds. Volumes shipped by the Grains & Oilseeds Platform were almost unchanged year on year. Freight Platform net sales decreased year on year, driven by lower prices, while Juice Platform net sales increased year on year, fueled by a growth in volumes shipped combined with higher average prices. 

•The Merchandizing Segment’s net sales decreased by 24.9% year on year, owing mainly to lower volumes shipped by the Segment in a context of slowing global growth, combined with lower prices for cotton and Arabica coffee. After high levels in 2022, volumes shipped by the Cotton Platform decreased due to lower US production and global consumption. The decrease in volumes shipped by the Sugar Platform partially resulted from the divestment of the Imperial Sugar business in the US.

Segment Operating Results

Segment Operating Results remained stable at US$2,607 million for the year ended December 31, 2023, compared to US$2,611 million over the same period in 2022. LDC’s performance remained resilient despite lower volumes sold and decreased volatility compared to 2022. LDC once again leveraged its global presence and market insights to capture profitable origination and sales opportunities, successfully manage risks, and meet customer demand in a persistently uncertain and complex global trade environment.

Value Chain Segment

The Segment’s Operating Results amounted to US$1,910 million for the year ended December 31, 2023, compared to US$1,817 million in 2022.

The Grains & Oilseeds Platform's global footprint, and more integrated value chain management from origin to destination, supported improved financial performance in 2023, compared to an already strong 2022. High crop yields in Brazil, combined with strong demand from China, opened profitable opportunities both at origin and destination for our soy and corn businesses. Our vegetable oils business once again delivered robust results, thanks to its efficient hedging strategy in the challenging market conditions of 2023, marked by a decline in prices, lower volatility and tight supply for palm oil. Processing activities significantly contributed to enhanced Platform performance, with strong crush and crack margins - particularly in North America, and large crop yields in Brazil. The Platform’s activities in Argentina were affected by record low crops for soy, corn and wheat following drought, combined with low farmer selling and reduced biofuel processing margins. LDC’s recently expanded grains activities in Australia further supported the Platform’s performance.

The Juice Platform delivered strong Operating Results for the year ended December 31, 2023, thanks to growth in volumes shipped combined with supportive market prices and a recovery in processing margins, from process improvements and lower energy costs. Successful revenue diversification toward higher value-added products, such as not-from-concentrate juices and citrus ingredients, was also a relevant contributor.

2023 marked the first year of operations for LDC’s recently created Food & Feed Solutions Platform, with a focus on building technical capabilities and integration across relevant LDC production sites, toward the creation of two global product lines: lecithin and glycerin. Despite a market slowdown in 2023, the Platform positively contributed to the Segment’s results, demonstrating the resilience of its global business model, based on a multi-origin, multi-product approach. The Platform leveraged upstream integration to acquire cost-competitive raw material and expanded its customer base in key markets.

After record high performance in 2022, the Freight Platform delivered resilient operating results in 2023, marked by a challenging geopolitical environment and a return of El Niño disruptions on dry bulk flows. The combined slowdown in global manufacturing growth and reduced port congestion in China put pressure on market rates, which were consequently down 30% year on year. The Platform’s strong performance was supported by successful positioning and hedging strategies, as well as continued innovation to optimize its operational model. Committed to helping shape a low-carbon economy, LDC announced in December 2023 a commercial agreement with bound4blue for the manufacture and installation of four eSAILs® on LDC’s chartered juice vessel, in collaboration with Wisby Tankers AB. This agreement is expected to reduce the vessel’s annual fuel consumption and CO2 emissions by at least 10%.

The Global Markets Platform continued to provide strong support to the Group through efficient interest rate and foreign exchange risk management across all significant currencies in LDC’s business, while keeping pace with the market’s constant evolution and needs.

17

18

9  interest income, Interest expense and Other financial income and expense.

Ongoing decarbonization efforts and initiatives continued throughout 2023, as our Carbon Solutions Platform led efforts to measure the Group’s greenhouse gas emissions and set a 33.6% reduction target for its Scope 1 & 2 emissions by 2030, compared to its 2022 baseline year. The Platform’s contribution to the Segment’s results remained limited, as voluntary credits markets were hit by a drop in prices and liquidity due to the Russia-Ukraine crisis and a slowdown in global growth. In this changing, low-liquidity environment, the Platform pursued its work to build a portfolio of high-quality credits.

Merchandizing Segment

Segment Operating Results reached US$697 million for the year ended December 31, 2023, compared to US$794 million in 2022.

The Cotton Platform delivered good results for the year ended December 31, 2023. Volumes sold for the period were lower compared to 2022, as US production significantly decreased due to drought conditions in West Texas, while global consumption declined as higher inflation levels put pressure on global cotton demand. Throughout the year, cotton prices were range-bound in a lower volatility market. In this challenging environment, Platform earnings were supported by contributions from logistics activities and solid merchandizing margins across multiple origins, including the US, Brazil, Australia and West Africa.

The Coffee Platform’s strong operating results for the year ended December 31, 2023 were supported by improved origination margins and volumes in Brazil, partially offset by lower results in Vietnam and Indonesia year on year. Coffee price volatility was fueled by low stocks and uncertainty over global consumption, with global demand shifting toward lower grade coffees and Robustas. In this complex environment, the Platform’s performance was supported by a successful hedging strategy. Our Coffee teams also continued to partner with both suppliers and customers to address increasing traceability requirements and, in March 2023, LDC’s Responsible Sourcing Program Advanced was recognized as equivalent to the Global Coffee Platform‘s Coffee Sustainability Reference Code.

The Sugar Platform’s reduced results year on year, are attributable to the sale of the Imperial Sugar business. Restated for this business’ contribution, the Platform’s operating results increased compared to 2022. Uncertainty over global supply fueled strong market volatility over the period, while a reduced export quota from India, unfavorable crops in Thailand and logistical bottlenecks in Brazil contributed to market tightness, fueling market volatility and increasing price trend. In this context, the Platform deployed a successful hedging strategy and diversified its revenue streams with ethanol in Brazil which supported its improved results.

The Rice Platform continued to deliver strong operating results year on year. In 2023, the Platform relied on its domestic presence in India to mitigate the negative impact from export restrictions. The Platform also leveraged its global network and reputation to diversify origins, with stronger focus on Thailand and Vietnam, combined with an increase in volumes originated from South America. Complementing its established customer centric strategy, the Platform’s focus on origin diversification ensured continued service to customers.

Commercial and Administrative Expenses

Commercial and administrative expenses increased year on year, due to higher inflation and higher personnel costs, linked to business expansion downstream and additional efforts on sustainability and digital transformation.

Net Finance Costs

Net finance costs9 amounted to US$(266) million for the year ended December 31, 2023, down from US$(288) million in 2022, mainly due to lower funding requirements. Interest expenses were controlled, with a year-on-year increase of US$(14) million, as a result of lower Working Capital Usage and despite a higher Secured Overnight Financing Rate (SOFR) - from 1.61% on average for the SOFR 1M over 2022, to 5.00% on average over 2023 (i.e. a 338bps increase). On the other hand, the Group benefited from the rise in reference interest rates with higher income on commercial transactions, partly offsetting the negative impact on interest expenses.

Other Gains and Losses

The US$(60) million loss in 2023 is related to the deconsolidation of the Group’s Russian business. In 2022, the US$(156) million loss related to Taman project impairment.

Income Before Tax

Income before tax decreased to US$1,208 million for the year ended December 31, 2023, compared to US$1,226 million for 2022.

Taxes

Taxes amounted to US$(198) million for the year ended December 31, 2023, resulting in a 16.4% effective tax rate, compared to 17.9% for 2022, mainly thanks to a favorable country mix and other non-recurring permanent differences, partially offset by negative functional currency impacts, notably in Argentina.

Net Income, Group Share

Net income, Group Share, settled at US$1,013 million for the year ended December 31, 2023, compared to US$1,006 million in 2022. Return on equity reached 16.6% for the 12-month period ended December 31, 2023, compared to 18.7% for the 12-month period ended December 31, 2022.

Non-Current Assets

As of December 31, 2023, non-current assets amounted to US$5,383 million, up from US$5,085 million as of December 31, 2022:

•Fixed assets landed at US$4,275 million, compared to US$3,963 million as of December 31, 2022. The increase was mainly due to the acceleration in new projects and constructions, as well as additional lease contracts, particularly in Asia.

•Investments in associates and joint ventures increased from US$230 million as of December 31, 2022, to US$291 million as of December 31, 2023. The US$61 million increase is mainly attributable to the indirect acquisition of 50% shares in the joint venture TEAG - Terminal de Exportação de Açúcar do Guarujá Ltda, additional capital injection in TES - Terminal Exportador de Santos S.A., and LDC’s share in the entities’ net income for the period.

•Non-current financial assets decreased from US$445 million as of December 31, 2022, to US$311 million as of December 31, 2023, mainly due to reclassification to current assets of derivatives and related margin deposits according to their maturities.

•Deferred income tax assets landed at US$253 million as of December 31, 2023, up from US$163 million as of December 31, 2022, mainly attributable to granted tax credits.

•Other non-current assets amounted to US$253 million as of December 31, 2023, down from US$284 million as of December 31, 2022, mainly coming from refund of tax credits.

Capital Expenditure

Maintaining its highly selective investment policy, LDC invested US$636 million during the year ended December 31, 2023, up from US$549 million for the year ended December 31, 2022, supporting its strategic ambitions while securing solid cash flows and remaining prudent in its capital deployment, as a volatile and uncertain market environment persisted. With a significant part of capital expenditure remaining discretionary as per the Group’s investment policy, LDC is well-positioned to adapt to and capture emerging opportunities as they arise.

The Group invested in planned and custom maintenance, as well as enhancements, to ensure the continued operational performance and safety of its existing assets. LDC also moved forward with strategic long-term projects for the expansion of its processing capacity and diversification downstream through research and development. System developments and improvements remained a significant investment area for the Group, particularly the roll-out of its global back-office enterprise resource planning (ERP) system and the deployment of an upgraded version of its existing front-office system, common to Grains & Oilseeds, Sugar and Rice. System harmonization and enhancement is part of the Group’s digitalization efforts, aiming to generate efficiency and support cost-effective business management in an increasingly complex environment.

Value Chain Segment

The Segment invested US$542 million over the year ended December 31, 2023, mostly to expand oilseeds processing capacity and support developments downstream.

In September 2023, the Grains & Oilseeds Platform completed the construction of a soybean processing facility as part of Fuling Food Industrial Park at the Port of Nansha, Guangzhou, China, in collaboration with Chinese partners.

In North America, the Platform started to invest in the expansion of its canola processing complex in Yorkton, Saskatchewan, Canada, aiming to reinforce its capacity to supply food, feed and energy customers, and initiated investments for the construction of a new soybean processing complex in Upper Sandusky, Ohio, US, with integrated crushing, vegetable oil refining and lecithin production and packaging capabilities. The new plant will also provide an option to participate in renewable energy feedstock markets and help meet growing demand for biofuels.

In addition, the Group initiated the construction of a USP grade glycerin refining and edible oil packaging plant in Lampung, Indonesia, complementing existing local refining capabilities.

The Juice Platform accelerated its investments in citrus grove replanting, and also invested to enhance operational performance and optimize production costs through higher production capacity, with a focus on not-from-concentrate juices. Investments also focused on industrial asset maintenance and continuous improvements, largely in Brazil, as well as operational safety enhancements.

Merchandizing Segment

Over the year ended December 31, 2023, platforms in the Segment invested US$94 million.

The Sugar Platform acquired a 50% stake in TEAG - Terminal de Exportação de Açúcar do Guarujá Ltda, a joint venture, for sugar exports via the port of Santos, São Paulo State, Brazil. 

The Coffee Platform continued to invest in the construction of a joint venture freeze-dried instant coffee plant in Binh Duong, Vietnam, commissioned in October 2023. The Platform also continued to invest in the expansion of LDC’s coffee mill in Varginha, Minas Gerais State, Brazil.

The Group also invested in the expansion of its logistic facilities at the port of Antwerp, Belgium, managed by its subsidiary Ilomar Holding N.V.

19

20

Balance Sheet Analysis

Working Capital

Working capital usage (WCU) amounted to US$7.3 billion as of December 31, 2023, stable compared to December 31, 2022. While Value Chain Segment platforms increased their working capital needs as of December 31, 2023 compared to December 31, 2022, this increase was partially offset by a decrease in Merchandizing Segment working capital needs:

•The Juice Platform drove the trend for the Value Chain Segment, partially offset by a decrease in Grains & Oilseeds working capital. Juice WCU increased due to a rise in inventories, in line with higher prices environment, as well as an increase in receivables. Grains & Oilseeds working capital decreased in a context of lower prices.

•Merchandizing Segment working capital needs decreased compared to December 31, 2022, driven mostly by Sugar, as a result of lower inventory volumes, as well as a decrease in receivables.

Due to their highly liquid nature, certain agricultural inventories are treated as Readily Marketable Inventories (RMIs), which are readily convertible into cash due to widely available markets and international pricing mechanisms. LDC considers that trading inventories with a liquidity horizon of less than three months qualify as RMIs if they can be sold without discount. As of December 31, 2023, RMIs represented 95.6% of the Group’s trading inventories, compared to 96.1% as of December 31, 2022.

Financing

LDC’s funding model is designed to support its long-term strategy. To preserve a balanced capital structure and match financial resources with funding requirements, the Group’s key guidelines are that long-term debt is primarily dedicated to support long-term investments, while short-term debt is used to support ongoing business in financing its main working capital needs.

To support its ambitious growth plan, LDC secured long-term financing through debt raised over 2021 and 2022 at very competitive interest rates. The portion of long-term financing exceeding long-lived assets is temporarily used to finance short-term assets, allowing the Group to finance its working capital needs at a competitive cost of funds.

Given the liquidity maturity profile of the Group’s balance sheet, we consider that approximately two-thirds of the Group’s working capital could be financed with short-term resources. In order to support the Group’s growth strategy, while providing cost-efficient funding for ongoing operations, the Group’s balance sheet maturity profile as at December 31, 2023 shows a significant excess of long-term sources.

LDC’s operations to originate, store, transform and distribute agricultural commodities throughout the world require sizeable amounts of capital, and its funding model is flexible enough to allow the Group to adapt funding to volatile market conditions. To guarantee continued access to capital, LDC implemented a funding strategy based on the following pillars:

•Diversified sources of funds: 29.2% of long-term financing came from debt capital markets as of December 31, 2023, and 22.0% from Farm Credit System loan;

•Stable debt maturity profile: average maturity of non-current portion of long-term financing was 4.5 years as of December 31, 2023;

•Sizeable proportion of committed facilities: 43.4% of total Group facilities were committed, of which US$4.3 billion with maturities beyond one year remained undrawn as of December 31, 2023;

•Sustainability-linked facilities: US$4.5 billion facilities embedding pricing mechanisms based on reductions in environmental key performance indicators; and

•the Group’s public investment grade rating (BBB/A2 with a stable outlook) by S&P Global Ratings.

Debt and Leverage

As of December 31, 2023, long-term debt10 stood at US$5.0 billion, up compared to December 31, 2022. The US$0.2 billion increase comprises refinancing of LDC’s Samurai loan, partially offset by US$300 million six-year bond repayment in June 2023 and the early repayment of the Brazilian export prepayment facility which was becoming current.

Short-term debt11 decreased by US$0.1 billion, standing at US$1.9 billion as of December 31, 2023. The record low short-term drawing level as of December 31, 2023 reflected a strong operational cash flow generation over 2023 combined with a moderate working capital level. Cash and cash equivalents increased by US$0.3 billion, to US$1.5 billion as of December 31, 2023.

In line with common practice in the agribusiness sector, short-term debt should be netted against RMIs, as those inventories can be considered as quasi-cash due to their highly liquid nature. Adjusted net debt reached US$0.1 billion as of December 31, 2023, with an adjusted leverage ratio of 0.1x, a record in Group history. Adjusted net gearing stood at 0.02 as of December 31, 2023, compared to 0.07 as of December 31, 2022.

Liquidity

The Group prudently manages financial risks, ensuring sustained access to liquidity. As of December 31, 2023, the Group had US$4.3 billion of undrawn committed bank lines, all with maturities beyond one year.

Available liquidity, which comprises current financial assets, RMIs and undrawn committed bank lines, remained very strong throughout the period and stood at US$11.6 billion as of December 31, 2023, enabling the Group to cover 5.2x the current portion of its debt at this date.

10  Current and non-current portion of the long-term debt.

11  Short-term debt plus financial advances from related parties, net of repurchase agreements and securities short positions.

21

Financing Arrangements

Long Term Financing

In July 2023, Louis Dreyfus Company B.V. refinanced and increased, one year ahead of maturity, its JPY64.9 billion Samurai loan into a new JPY101.3 billion facility (+56%) consisting of a three-year tranche (JPY49.5 billion) and a five-year tranche (increasing from JPY10.0 billion to JPY51.8 billion). This term loan strengthens existing relationships with Japanese investors, further diversifying sources of funding and increasing the level of committed facilities.

In September 2023, Louis Dreyfus Company NA Finance One LLC extended its Farm Credit System loan totaling US$955 million by 4 years, with new maturities in 2028, 2030 and 2033, and added a new US$200 million tranche through a Delay-Draw Term Loan available for 24 months, with a 7-year maturity.

Revolving Credit Facilities (RCFs)

The Group has six syndicated RCFs in three of its regional hubs (Singapore, Switzerland and US), as well as one with the European Bank for Reconstruction and Development (EBRD) for a total amount of US$4.1 billion as of December 31, 2023. The Group mitigates the risk of refinancing by maintaining geographical diversification and staggered maturity dates. To that end, each of its three regional hubs usually refinances one of its RCFs each year, one year ahead of maturity, when market conditions are deemed favorable.

In August 2023, Louis Dreyfus Company Asia Pte. Ltd. refinanced its US$730 million RCF one year ahead of its maturity, into a three-year US$800 million facility maturing in August 2026. 

In December 2023, Louis Dreyfus Company Suisse S.A. refinanced and increased its US$445 million RCF into a three-year US$590 million facility maturing in December 2026, including new environmental Key Performance Indicators (KPIs). The Group replaced its previous five-year (2018-2022) environmental KPI targets with KPIs based on Scope 1 and 2 emissions reductions, as well as verified deforestation- and conversion-free Brazilian soy and corn origination volumes. These new KPIs were supported by a Second Party Opinion report in line with the Sustainability Linked Loan Principles issued by ISS-Corporates which considered the KPIs ambitious and material for the agri-commodities industry.

In October 2023, LDC Tarim Ürünleri Ticaret Limited Şirketi signed a US$65 million three-year RCF with the European Bank for Reconstruction and Development (EBRD). This new facility will be dedicated to working capital financing for operations originated from, or with destination to, Türkiye. As part of this facility, the company will be actively working to originate Better Cotton certified volumes and drive supply chain traceability from Türkiye. In parallel, and for the next three years, LDC and EBRD are jointly financing a capacity-support program focused on encouraging and supporting Turkish cotton farmers to adopt Better Cotton standards.

In December 2023, Louis Dreyfus Company LLC aligned its three-year US$700 million RCF, maturing in May 2026, with the new environmental KPIs of Louis Dreyfus Company Suisse S.A.

Consequently, as of December 31, 2023, all committed RCFs were maturing above one year, all Group RCFs are guaranteed by Louis Dreyfus Company B.V. and all syndicated RCFs included a sustainability-linked pricing mechanism.

EU Commercial Paper Program

Louis Dreyfus Company B.V.'s rated EU Commercial Paper Program allows the Group to benefit from access to diversified sources of short-term financing at competitive rates, with an outstanding amount of US$237 million as of December 31, 2023 (versus US$521 million as of December 31, 2022), and an average of US$499 million across maturities ranging up to 12 months in 2023.

Equity

Equity attributable to owners of the company increased from US$6,096 million as of December 31, 2022, to US$6,630 million as of December 31, 2023, with total equity of US$6,664 million at the same date.

The US$534 million increase in equity attributable to owners of the company over the year ended December 31, 2023, mainly resulted from the US$1,013 million of net income, Group Share for the period, net of the payment of a US$503 million dividend.

Risk

Identifying and quantifying risks is central to LDC’s business model, and the Group has long been committed to developing appropriate organizational structures to mitigate and manage these risks.

As usual, the Group closely monitored its daily value-at-risk (VaR) and kept it significantly below 1% of its equity, with an average VaR usage of 0.26% during the year ended December 31, 2023, compared to 0.39% for the year ended December 31, 2022. VaR is only one of the risk metrics within LDC’s wider risk management system.

Subsequent Events

In January 2024, LDC and The Nature Conservancy announced a collaboration to promote and implement regenerative agricultural and habitat conservation practices in strategic agricultural supply chains, as part of a shared goal to mitigate climate change from food and agricultural production, and improve biodiversity and ecosystem services. This five-year collaboration started with the assessment of current initiatives relating to regenerative agriculture and deforestation- and conversion-free (DCF) production, the design of incentive structures for DCF initiatives for farmers and the design of pilot projects for regenerative agriculture with the participation of various stakeholders.

As part of the Group’s global growth strategy, the Group announced in February 2024 the construction of a pea protein isolate production plant dedicated to its Plant Proteins business, at the site of its existing industrial complex in Yorkton, Saskatchewan, Canada.

22

Reconciliation of Non-GAAP Indicators

Reconciliation With the Consolidated Financial Statements

Unless otherwise stated in the ‘Notes’ column of the following tables, all figures can be found either in the ‘Consolidated Income Statement’, the ‘Consolidated Balance Sheet’ or the ‘Consolidated Statement of Cash Flows’.

EBITDA (year ended December 31)

Adjusted Net Debt (as of)

23

25

To the Managing Directors of Louis Dreyfus Company B.V.

Opinion

We have audited the accompanying consolidated financial statements of Louis Dreyfus Company B.V. and its subsidiaries (the “Group”), which comprise the consolidated balance sheet as of December 31, 2023, and the related consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including the significant accounting policies and other explanatory notes.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as of December 31, 2023, and of its consolidated financial performance and consolidated cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Basis for Opinion 

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs as adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

26

27

•Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Applicable law

This report is governed by, and construed in accordance with, French law. The Courts of France shall have exclusive jurisdiction in relation to any claim, difference or dispute which may arise out of or in connection with our engagement letter or this report. Each party irrevocably waives any right it may have to object to an action being brought in any of those Courts, to claim that the action has been brought in an inconvenient forum or to claim that those Courts do not have jurisdiction.

Paris-La Défense, France, March 20, 2024

DELOITTE & ASSOCIES

François BUZY

Year ended December 31

28

Comprehensive Income

Year ended December 31

29

As of December 31

1 Change in presentation performed - refer to Notes 3.5 and 5.4.

30

31

Consolidated Balance Sheet Continued

As of December 31

1 Change in presentation performed - refer to Notes 3.5 and 5.4.

Consolidated Statement of Cash Flows

Year ended December 31

32

Consolidated Statement of Changes in Equity

33

Louis Dreyfus Company B.V. (“LDC” or the “company”) is a privately owned company incorporated in the Netherlands on December 28, 2004, registered at the Chamber of Commerce under registration number 24371219. The address of its registered office is Westblaak 92, 3012 KM Rotterdam, Netherlands. LDC is an indirect subsidiary of Louis Dreyfus Holding B.V. (LDH), a privately owned Dutch company controlled by the family foundation established by Robert Louis-Dreyfus.

LDC and its subsidiaries (the “Group”) is a global merchant and processor of agricultural goods, operating a significant network of assets around the world. The Group’s activities span the entire value chain from farm to fork, across a broad range of business lines (platforms). Since its inception in 1851, the Group’s portfolio has grown and, as of December 31, 2023, included Grains & Oilseeds, Coffee, Cotton, Juice, Rice, Sugar, Freight, Global Markets, Carbon Solutions and the newly created Food & Feed Solutions Platform.

In June 2017, LDC completed the issuance of an unrated senior bond for US$300 million (six-year, 5.25% coupon), which was reimbursed in June 2023. In November 2020, LDC completed the issuance of a rated senior bond for €600 million (five-year, 2.375% coupon), completed in February 2021 by an additional €50 million through a reverse inquiry. In April 2021, LDC completed the issuance of a rated senior bond for €500 million (seven-year, 1.625% coupon). These bonds are listed on the Luxembourg Stock Exchange (refer to Note 5.2).

1. Accounting Policies and Consolidation Scope

1.1 Accounting Policies

The consolidated financial statements of LDC are prepared in US Dollars, which is the functional currency of the main subsidiaries of the Group.

Accounting policies used to prepare these Financial Statements are the same as those used to prepare the consolidated financial statements as of and for the year ended December 31, 2022, except for the adoption of new amendments, standards and interpretations as of January 1, 2023, as detailed below.

34

The Group did not adopt any standard, interpretation or amendment that was issued but is not yet effective.

35

Use of Estimates

•Amendments to IAS 21 “Lack of Exchangeability”. The amendments will come into effect as of January 1, 2025 with early application permitted.

36

Cash flows from operating activities are reported using the indirect method: net income is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows.

37

The Group is closely monitoring the complex situation of the Russia-Ukraine crisis, operating in compliance with international sanctions, laws and regulations.

As announced on April 3, 2023, the Group ceased grain exports from Russia and has been engaged in a sale process of its existing business and assets in Russia (“Russian business”) on terms that satisfy the requirements of the Russian authorities. As of December 31, 2023, the Group performed a reassessment of control as defined by IFRS 10, and considering facts and circumstances, the Group concluded on a loss of control and deconsolidated its Russian business. As a consequence, the Group recorded a US$(60) million loss (including US$(33) million foreign currency translation adjustment recycling from OCI) in the line "Other gains and losses" of the consolidated income statement (refer to Note 2.5).

As of December 31, 2023, assets classified as held for sale relate mainly to Kowalski corn processing assets in Brazil.

38

2.1 Segment Information