PUBLIC
at a glance
PUBLIC
CONTENTS
THE GROUP AT A GLANCE3HOW WE OPERATE8CORPORATE SOCIAL RESPONSIBILITY12OUR LATEST FIGURES18
23 APPENDIX
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THE GROUP AT A GLANCE
3
**End March 2020
Market capitalisationTop 8 SMITop 3 JSE
CHF 42 bn**
Sales
€ 14 bn
Operating profit
€ 1.5 bn
Foundedin 1988
A leading luxury goods group
Net cash
€ 2.4 bn
**Dec 2020
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THE GROUP AT A GLANCE
4
Richemont Headquarters by architect Jean Nouvel, Geneva
7 Schools
25 Maisons and businesses
2 186 Boutiques(of which 1 179 internal)
9 Main Foundations supported
Over 35 000 Employees(including over 8 000 in
Switzerland)
*End September 2020
*
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FROM THE PAST INTO THE FUTURE
5
265
1755
190 175 146
127 68 25
114
114
1937 5
18
92
*
*Both YOOX and NET-A-PORTER were founded in 2000
160
101
2002183318301814 186018471845 189318741868 192819191906 1983 19951952 20152001
152173187206
2021
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1988 – 2020: UNIQUE PORTFOLIO MOSTLY BUILT BY ACQUISITIONS
6
61988
101990’s
152000’s
242010’s
252020’s
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A WORLDWIDE PRESENCE
7
EuropeEurope
Middle East and Africa7%
Europe30%
Asia Pacific35%
Americas20%
Japan8%
Sales by geographical area
Operating in
36locations
2 166 boutiques
*End March 2020
*
Cartier store in Cannes, France
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HOW WE OPERATE
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WHAT WE STAND FOR
9
They affect what we doand why we do it
They shape how we behave every day — in all areasof our business
Collegiality
Solidarity Loyalty
Freedom
Our Corporate culture is determined by the principles we live by
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Provide guidelines, set policies & standards, and provide control and support on:
HR, IP, Legal, Marketing Services, Finance, Manufacturing, CSR, Real Estate, Logistics, Security, Health & Safety and IT
HOW OUR BUSINESS OPERATES
10
We work as business partners
are directly in charge of:
Creation Product Development Manufacturing Marketing Communication Distribution Network Customer Services
Headquarters
SEC
Strategic Product & Communication Committee
Central Functions
Provide the right business environment for Maisons and Businesses to grow their brand equity and develop sustainably by running efficient local operations and attracting the best local talents
HR, Finance, Logistics, IT, Real Estate, Security, Health & Safety and Building & office services
Strategy, Capital Allocation
Guide the Maisons by verifying that decisions on Products, Communication and Distribution are appropriate and consistent with Maisons’ identities & strategies
Our Maisons and businesses
Regional Functions(Europe & Latin America; North America; Asia Pacific; Japan; Middle East, India and Africa)
in order to preserve their distinctiveness, unique heritageand DNA, and enable their individual creativity to flourish
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1 896
2 723
2 331
2 797
FY17
FY18
FY19
FY20
Cash flow from operations, € m
5 791
5 269
2 528
2 395
FY17
FY18
FY19
FY20
Net cash, € m
FOCUS ON SUSTAINABLE CASH GENERATION
11
⟩ Build goodwill rather than acquire goodwill
⟩ Create value over the long term
⟩ Never undertake actions that would favour the short term to the detriment of the long term
⟩ "Create moats" developing sustainable competitive advantages
⟩ Generate steady cash flows and dividend growth (priority of cash over margins)
⟩ Cash is our fortress and enables to seize opportunities
∆%
-52%
-9%
+8%
∆%
-14%
+44%
-22%
+20%-5%
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SUSTAINABILITY
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OUR TRANSFORMATIONAL CSR STRATEGY
13
Our ‘Movement for Better Luxury’ is supported by four focus areas: People, Sourcing, Environment and Communities - each of which has an owner at Group level and a series of commitments. These four areas are encompassed by strong governance, active engagement and continuous innovation in materials and processes.
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OUR SUSTAINABILITY PROGRAMMES
14
Headquarters in Geneva, Switzerland
Aimto minimise the environmental impacts of our business operations
Helpour people to realise their potential in a supportive and stimulating environment
Investin local communities where we operate
Workwith business partners to foster sustainable practices
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UNITED NATIONS GLOBAL COMPACT
15
UNGC participants align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals
Richemont is a participant in the United Nations Global Compact, the world’s largest corporate sustainability initiative
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Men50%
Women50%
Others27%
French22%
Chinese16%
Italian8%
Swiss8%
American7%
German6%
British6%
DIVERSITY IS OUR CULTURE
16
Nationalities
People Managers
58 % of total workforce
are Women
*End March 2020
*
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RESPONSIBLE SOURCING, MANUFACTURING AND DISTRIBUTION
17
Responsible sourcing Sustainable manufacturing and office facilities Eco-friendly distribution
01 02 03
Since 2010, all our new manufacturing facilities have been designed with very special care for the environment
The IWC manufacture in Schaffhausen along with 7 of our other manufacturing facilities do not use any fossil energy for heating or cooling purposes and produce no direct CO2 emissions
The Campus Genevois de Haute Horlogerie runs on 100% renewable energy, producing zero carbon emissions
Use of smaller boxes for e-commerce deliveries, working towards the complete removal of plastic laminates from shopping retail bags and, whenever possible, use of 100% responsibly-sourced wood-based materials certified by the Forestry Stewardship Council
Environmental-friendly lighting with LED technology in our renovated boutiques
Panerai’s Shanghai Plaza 66 boutique received GOLD LEED certification in July 2017. LEED stands for Leadership in Energy and Environmental Design
Richemont requests all its suppliers to provide assurance that supplies have been sourced in a way which respects human and labour rights, and the environment
Richemont is an active member of the RJC (Responsible Jewellery Council) with Cartier being one of the founding members
We consider how the environment is affected throughout the supply chain, favouring, for instance, recycled gold over mined gold
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OUR LATEST FIGURES
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FINANCIAL HIGHLIGHTS
19
10 023
10 410
11 076
10 647
11 013
13 989
14 238
0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000
Group sales (€ m)
€ 14 billion € 1.5 billion 11% € 2.4 billionTurnover Operating Profit Operating Margin Net Cash Position
2 427
2 670
2 061
1 764
1 844
1 943
1 518
0 500 1 000 1 500 2 000 2 500 3 000
Operating Profit (€ m) and Operating Margin
+6%
+4%
-1%
+27%
-4%
+3%
18.6%
25.6%
24.2%
13.9%
16.6%
16.7%
FY20 FY20
FY14
*End March 2020
*
10.7%+2%
FY14
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SALES BY REGION
20
€ 2.8 billionAMERICAS
+6%
€ 1.2 billionJAPAN
-1%
€ 0.9 billionMIDDLE EAST AND AFRICA
-3%
€ 5.0 billionASIA PACIFIC
-6%
€ 4.3 billionEUROPE
+4%
929
1 148
2 551
4 118
5 243
930
1 212
2 806
4 298
4 992
0 1 000 2 000 3 000 4 000 5 000 6 000
MIDDLE EASTAND AFRICA
JAPAN
AMERICAS
EUROPE
ASIA PACIFIC
FY20 sales by region (€ m)
-5%
+4%
+10%
+6%
Asia Pacific35%
Europe30%
Americas20%
Japan8%
Middle East and Africa7%
% FY20 sales
vs prior period constant rates
FY19 sales
vs prior yearactual rates
*
*End March 2020
-
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SALES BY DISTRIBUTION CHANNEL
21
€ 7.3 billion € 4.3 billion
4 407
2 262
7 320
4 254
2 646
7 338
0 2 000 4 000 6 000 8 000
Wholesale**
Online Retail
Retail
FY20 sales by distribution channel (€ m)
+17%
RETAIL WHOLESALE**
-2% -5%
Online Retail 19%
Wholesale**30%
Retail51%
% FY20 sales
vs prior period constant rates
FY19 sales
vs prior yearactual rates
*
*End March 2020
€ 2.6 billionONLINE RETAIL
-
-3%
+14%
** includes royalty income
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SALES BY BUSINESS AREA
22
€ 1.8 billionOTHER BUSINESSES
€ 2.4 billionONLINE DISTRIBUTORS
€ 2.9 billionSPECIALIST WATCHMAKERS
€ 7.2 billionJEWELLERY MAISONS
Jewellery Maisons
51%
Specialist Watchmakers
20%
Online Distributors
17%
Other12%
% FY20 sales
*End March 2020
*
vs prior period constant rates
vs prior yearactual rates
FY19 sales
- -6% +13% -7%
1 881
2 105
2 980
7 083
1 788
2 427
2 859
7 217
0 2 000 4 000 6 000 8 000
Other
OnlineDistributors
SpecialistWatchmakers
JewelleryMaisons
FY20 sales by business area (€ m)
Jewellery Maisons
Specialist Watchmakers
Online Distributors
Other
+2%
-4%
+15%
-5%
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APPENDIX
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25 MAISONS & BUSINESSES
24
Specialist WatchmakersJewellery Maisons Online Distributors Fashion &Accessories/Other
4 business areas:
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25
RETAIL NETWORK - WORLDWIDE
2 186
TotalBoutiques
1 179
Of whichInternal Boutiques
* Other SW - A. Lange & Söhne, Baume & Mercier, Roger Dubuis; Online Distributors - Watchfinder & Co.; Other F&A - Alaïa, Purdey, Serapian
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OUR 7 SCHOOLS
26
L’Ecole des Métiers Artisans de Haute Horlogerie (Geneva)
L’Ecole des Arts Joailliers(Paris)
Creative Academy (Milan)
Institut Horlogerie Cartier (La Chaux-de-Fonds)
Institut Joaillerie Cartier (Paris)
INSTITUTE OFSWISS WATCHMAKING
Institute of Swiss Watchmaking (Hong Kong SAR, Shanghai and Dallas)
Retail Academy (Hong Kong SAR, Shanghai and New York)
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MAIN FOUNDATIONS SUPPORTED
27
The Michelangelo Foundation for Creativity and Craftsmanship
Peace Parks Foundation
Fondation de la Haute Horlogerie
Fondation Cartier Pour l’Art Contemporain
Cartier Philanthropy Laureus Sport for Good Foundation
Fondation CulturelleMontblanc
Fondation Azzedine Alaïa
Cologni Foundation for Artistic Craft Professions
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Rest of Europe37%
Switzerland23%
Asia Pacific21%
Americas10%
Japan6%
Middle East and Africa
3%
OUR PEOPLE
28
Europe Europe60%
Av. Age39y
Av. Seniority
4y
7y
Time in position
55% S&D
21 %Manufacturing
Corporate & Regional
24 %
Functions
*
*End March 2020
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OUR ORIGINS
29
Compagnie FinancièreRichemont was established in September 1988 in Switzerland, with the spin-off of the non-SA assets of the Rembrandt Group Limited, now known as Remgro Ltd and founded in the 1940’s by Anton Rupert
Compagnie Financière Richemont
Natural Resources
Tobacco34.1% equity interest 43.8% voting interest
Diversified Consumer Goods
Luxury Goods90%
Luxco
Cartier Monde
Piaget Baume & Mercier
Holding
Dunhill HoldingsPLC
(Montblanc, Dunhill, Chloé)
Rothmans *International PLC
North American Resources Limited
(50%)
Frontier Holdings Inc
Metal Powder Products Inc
Harken Energy Corporation
FosforeraEspañola SA
Diversa SA
Ind. de Fósforosy Encendederos SA
Fósforos del Pirineo SA
Conservas La Tila SAViuda de Solano SA
Financial Services
TransAtlanticHoldings PLC
The Continental& Industrial Trust
PLC
Capital & Counties PLC
Sun Life Assurance Society PLC
* Founded in 1973
Listed in Johannesburg (90%) and Zurich (10%)Initial offering price = CHF 5.00̴ to CHF 2.20 after splits/ restructurings
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KEY GROUP DEVELOPMENTS SINCE 1988
30
19931988
Foundation of CompagnieFinancière
Richemont, listing on SIX and the JSE
Foundation of VendômeLuxury Group (VLG) and
listing on the UK stock exchange
1995 1996 1997 1998 1999 2000 2001 2008 2010
Buyout of Rothmans’ minority (40%) shareholders
Merger of Richemont’s and
Rembrant’s tobacco businesses
Merger of pay television interest with
Canal+. Richemont owns 15% of Canal+
Buyout of VLG minority (30%) shareholders
Merger of Rothmans with BAT. Richemont owns 23.3% of BAT
Acquisition of LMH (JLC, IWC, L&S) and disposal of interest in Vivendi (2.9%)
Merger of VLG with Richemont;
Mr Rupert remains Executive Chairman of
the Management Board
Separation of Richemont’s luxury good
business from its other interests (notably stake in
BAT now under Reinet)
Acquisition of 93% of NET-A-PORTER.COM
2015 2018
Acquisition of 100% of YOOX NET-A-PORTER GROUP
Merger of NET-A-
PORTER and YOOX
GROUP (49% owner)
2002
Issue of a € 4 billion
bond
Mr Rupert becomes Chairman of Richemont
2020
Issue of a € 2 billion
bond
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LEGAL OWNERSHIP STRUCTURE
31
Listed & traded on SIX Swiss Exchange(Reuters "CFR.VX" / Bloomberg "CFR:VX") and included in the Swiss Market Index ('SMI') of leading stocks. ISIN CH0210483332
South African depository receipts in respect of Richemont 'A' shares are traded on the Johannesburg Stock Exchange operated by JSE Limited (Reuters "CFRJ.J" / Bloomberg "CFR:SJ"). ISIN CH0045159024
Richemont South African Depository Receipts are issued in registered form
CHF 1.00 par value 1m A shares minimum needed to request that an item
be placed on the agenda for the AGM Treasury shares are held in relation
to Executive Stock Options
Unlisted 100% owned by Compagnie Financière Rupert CHF 0.10 par value B shareholders receive 1/10th (10%) of the dividend per share
paid to A shareholders
Compagnie Financière Richemont SAGeneva
Listed 522.0m A Registered Shares Private 522.0m B Registered Shares
50% votes 50% votes
90.9% of Capital / Economic Participation 9.1% of Capital / Economic Participation
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€ 5.2 billionJEWELLERY
-
€ 0.6 billionOTHER
-2%
€ 4.8 billionWATCHES
-4%
€ 0.4 billion
WRITING INSTRUMENTS
-9%
€ 1.8 billionCLOTHING
+12%
€ 1.4 billionLEATHER GOODS
-1%vs FY18 constant rates
SALES BY PRODUCT LINE
32
-2%
+3%
+1%
+15%
-7%
-629
414
1 402
1 553
4 930
5 061
627
383
1415
1792
4 816
5 205
0 1 000 2 000 3 000 4 000 5 000 6 000
Other
Writinginstruments
Leathergoods
Clothing
Watches
Jewellery
FY20 Sales by product line (€ m)
Jewellery36%
Watches34%
Clothing 13%
Leather Goods10%
Writing Instruments3%
Other4%
% of FY20 Salesvs FY19 actual rates
FY19 sales
*End March 2020
*
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2.93.7 3.9 3.7 3.4 3.7
4.34.8
5.3 5.4 5.2
6.9
8.9
10.2 10.010.4
11.110.6
11.0
14.014.2
SALES EVOLUTION 2000-2020
33
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172000 2018
*End March in € billions
*
>4XIn 20 years
2019 2020
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FINANCIAL HIGHLIGHTSSolid cash flows, financing critical investments, led to a strong net cash position
34
710 599 487
826 735
2 419
1 896
2 723
2 331
2 797
5 339
5 791
5 269
2 528 2 395
2016 2017 2018 2019 2020
* Net acquisition of fixed assets, primarily in manufacturing facilities and boutiques
*
€ m
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FINANCIAL HIGHLIGHTS
35
7 118 6 799 7 150
8 645 8 611
2016 2017 2018 2019 2020
Gross profit, € m
2 419
1 896
2 723
2 331
2 797
2016 2017 2018 2019 2020
Cash flow from operations, € m
2 061
1 764 1 844 1 943
1 518
2016 2017 2018 2019 2020
Operating profit, € m
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DIVIDENDS; PAID AND PER A SHARE/10 B SHARES
36
*FY ending 31 March
*in
€ m
illion
sD
ividend
sper sha
re(in C
HF)
** Warrants under the shareholder loyalty scheme issued on 27 November 2020
CHF 0.35€ 141 m
CHF 0.45€ 204 m
CHF 0.55€ 250 m
CHF 1.00€ 452 m
CHF 1.40€ 650 m
CHF 1.60€ 854 m
CHF 1.70€ 878 m
CHF 1.80€ 918 m
CHF 1.90€ 926 m
CHF 2.00€ 1 017 m
CHF 1.00 **€ 529 m
0.00
0.50
1.00
1.50
2.00
2.50
0
200
400
600
800
1000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
PUBLIC
SHARE PRICE SINCE FLOTATION
37
(in CHF)
0
20
40
60
80
100
120
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SHARE PRICE OVER 10 YEARS
38
(in CHF)
0
20
40
60
80
100
120
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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BUCCELLATI • CARTIER • VAN CLEEF & ARPELS •
A.LANGE & SÖHNE • BAUME & MERCIER • IWC • JAEGER-LECOULTRE • PANERAI • PIAGET • ROGER DUBUIS •
VACHERON CONSTANTIN •
WATCHFINDER & CO. • NET-A-PORTER • MR PORTER • THE OUTNET • YOOX • ONLINE FLAGSHIP STORES •
ALAÏA • AZ FACTORY •CHLOÉ • ALFRED DUNHILL • MONTBLANC • PETER MILLAR • PURDEY • SERAPIAN
At Richemont, we craft the future