| Thu 27 May 2010, 7:56 | | CFR - Compagnie Financiere Richemont SA Depositary Receipts - Audited results |
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CFR - Compagnie Financiere Richemont SA Depositary Receipts - Audited results
for the year ended 31 March 2010 and proposed cash dividend
Compagnie Financiere Richemont SA Depositary Receipts
issued by Richemont Securities AG
(Incorporated in Switzerland)
ISIN: CH0045159024
Depositary Receipt Code: CFR
PRESS RELEASE FOR IMMEDIATE RELEASE
Audited results for the year ended 31 March 2010 and proposed cash dividend
Financial highlights
- Sales at Euro 5 176 million reflected a decline of 4 per cent
- Operating margin was 16 per cent of sales
- Cash flow from operations was Euro 1 464 million compared to Euro 819 million
in 2009
- Net cash position improved by Euro 1 074 million to Euro 1 896 million
- Proposed dividend: CHF 0.35 per share, representing an increase of 17 per cent
Key financial data (audited) 12 months ended 31
March
In millions of euros 2010 2009 Change
Sales 5 176 5 418 - 4 %
Gross profit 3 191 3 417 - 7 %
Gross margin (%) 61.6 63.1 - 150 bps
Operating profit 830 968 -14 %
Operating margin (%) 16.0 17.9 -190 bps
Profit from continuing 603 737 -18 %
operations
Earnings per share from 1.076 1.312 -18 %
continuing operations - diluted
basis (Euro)
Cash flow from operations 1 464 819 + Euro 645 m
Net cash position 1 896 822 + Euro 1 074
m
Commenting on the Group`s performance, Johann Rupert, Executive Chairman and
Chief Executive Officer of Compagnie Financiere Richemont SA, said:
"Richemont has weathered the economic crisis to date and is in a strong
financial position. Our businesses reacted quickly and positively to the
downturn in demand and have grown market share. On behalf of shareholders, I
would like to thank all of Richemont`s employees, around the world, for the
commitment and dedication that they have shown to the Group during these
difficult times. We are ready to capitalise on growth opportunities in new
markets and to meet demand in established markets once the economic situation
improves. Key drivers of the Group`s future success will be innovation and
creativity, which have always been hallmarks of the Maisons. There will still be
plenty of challenges ahead but I am confident that Richemont`s Maisons will
surmount them."
This document contains forward-looking statements as that term is defined in the
United States Private Securities Litigation Reform Act of 1995. Such forward-
looking statements are not guarantees of future performance. Actual results may
differ materially from the forward-looking statements as a result of a number of
risks and uncertainties, many of which are outside the Group`s control.
Richemont does not undertake to update, nor does it have any obligation to
provide updates of or to revise, any forward-looking statements.
Executive Chairman`s Commentary
Overview
The last 18 months or so has been a challenging period in Richemont`s history.
The global economic crisis, which stemmed from the over-expansion of credit, saw
consumer confidence in most markets collapse in late 2008 after a boom period up
to September of that year.
The first six months of the year under review were measured against the strong
comparatives of the first half of 2008/09. The Group`s retail sales were lower
and the wholesale business in the Americas and Europe contracted substantially
as our partners in the watch retail sector de-stocked. We have seen a recovery
in demand in the second half of the year, albeit measured against easier
comparative figures.
Despite the difficulties the Group has experienced, Richemont has come through
the recession in good shape. The measures that we introduced in 2008 to limit
capital expenditure, to focus boutique openings in high-growth markets, to limit
production and inventory build-up and to keep costs under strict control were
timely and effective. Although we have had to take prudent measures to preserve
the Group`s profitability and cash flow, such decisions have always been taken
with a view to the long-term development of the Group.
Results
The results for the year were, in the circumstances, good. The limited decline
in sales over the year as a whole resulted in a reduction in operating profit
from Richemont`s luxury business of 14 per cent to Euro 830 million. Excluding
the impact of discontinued operations from the prior year`s figures, profit
after taxation was down by 18 per cent to Euro 603 million. The Group`s net
cash position increased by Euro 1 074 million during the year to reach Euro 1
896 million by 31 March 2010.
Dividend
Based upon the results for the year, the Board has proposed a dividend for the
year of CHF 0.35 per share, an increase of 17 per cent over last year`s level.
Business developments
We have taken advantage of this difficult period to optimise the Group`s
operations. Starting in 2008, the Maisons` own boutique networks were
critically reviewed and during the year under review a number of boutiques were
closed. The quality of the boutique network is therefore being improved.
Equally, the Maisons have analysed their third-party distribution arrangements
and again steps have been taken to strengthen the network, resulting in cutbacks
in the number of external points of sale in some key markets, most notably in
the United States.
The Asia-Pacific region was significantly less impacted by the global crisis
than was initially feared. Richemont`s Maisons were already well positioned in
the region and in the growing market of mainland China. Our strategy in China
is to continue to develop our distribution network and to ensure that we are
able to offer customers a high-quality shopping experience in keeping with the
values of the Maisons. Linked to this, we have established our own distribution
infrastructure to service the market and, most importantly, have set up a
comprehensive after sales service organisation and training schools to develop
the necessary skill sets for our staff in China.
During this severe economic downturn, Richemont has at the same time been
prudent while continuing to invest for the long term. NET-A-PORTER.COM
illustrates this strategy. On April 1st, we announced plans for Richemont to
significantly increase its interest in this internet-based fashion retailer.
Today, NET-A-PORTER is a highly successful, customer-oriented luxury fashion
retailer. Established in 2000, it features collections from over 300 of the
world`s leading designers and offers unrivalled customer service; it ships to
over 170 countries worldwide and recently celebrated its millionth order. Its
unaudited turnover for its financial year ended 31 January 2010 was
approximately Pound 120 million. NET-A-PORTER will continue to operate as an
independent entity within the Group, building on its success to date, and will
be able to draw on Richemont to support its international development plans. We
encourage you to visit NET-A-PORTER`s website at www.net-a-porter.com
Outlook
Richemont has weathered the economic crisis to date and is in a strong financial
position. Our businesses reacted quickly and positively to the downturn in
demand and have grown market share. They are ready to capitalise on growth
opportunities in new markets and to meet demand in established markets once the
economic situation improves. Sales in the first quarter of 2010 have continued
to follow the trend seen in the pre-Christmas period and sales in the month of
April were 24 per cent above the prior year`s depressed levels, primarily driven
by wholesale sales.
Key drivers of the Group`s future success will be innovation in terms of
product, distribution and markets as well as creativity, which have always been
hallmarks of the Maisons. There will still be plenty of challenges ahead but we
are confident that Richemont`s Maisons will surmount them.
Johann Rupert
Executive Chairman and Chief Executive Officer
Compagnie Financiere Richemont SA
Geneva, 27 May 2010
Financial Review
in Euro millions 31 March 31 March 2009
2010
re-presented
Sales 5 176 5 418 - 4 %
Cost of sales (1 985) (2 001)
Gross profit 3 191 3 417 - 7 %
Net operating expenses (2 361) (2 449) - 4 %
Selling and distribution (1 277) (1 235) + 3 %
expenses
Communication expenses ( 506) ( 644) - 21 %
Administration expenses ( 545) ( 542) + 1 %
Other operating ( 33) ( 28) n/a
(expense)/income
Operating profit 830 968 - 14 %
Sales
Following a period of record levels of sales and profitability until 30
September 2008, Richemont was affected by the difficult trading environment from
October 2008 onwards. As a consequence, full year sales were down 4 per cent at
current exchange rates and 5 per cent at constant exchange rates versus a year
ago. During the first half of the year under review, wholesale sales in those
regions most affected by the financial crisis, particularly the Americas and
Europe, were particularly depressed as trade partners sought to reduce their
inventory levels. Sales through the Group`s own boutique network were generally
more resilient. Consequently, sales in the first six months of the year were 15
per cent lower. During the second six months of the year under review, whilst
trading conditions remained challenging, sales were 7 per cent higher: in the
comparative period of fiscal 2009, sales were 5 per cent lower.
Gross profit
The gross margin percentage declined by 1.5 percentage points to 61.6 per cent
of sales. The lower margin primarily results from the lower levels of
manufacturing capacity utilisation and the strengthening of the Swiss franc
during the year. With almost all of the Group`s watchmaking facilities being
located in Switzerland (A. Lange & Sohne is based in Germany), the Swiss franc
is of particular importance to the Group`s cost of sales. The lower gross margin
percentage, combined with the decrease in the value of sales, led to a gross
profit decrease of 7 per cent.
Operating profit
Strict cost discipline resulted in net operating expenses decreasing by 4 per
cent overall. Selling and distribution expenses were marginally higher than the
prior year, with cost savings from the established network more than offset by
the additional costs of the expansion of the boutique network, particularly in
the Asia-Pacific region. The 21 per cent decrease in respect of communication
expenses partly reflected the timing of the annual Salon International de la
Haute Horlogerie (`SIHH`) event; due to the change of the event from April to
January in 2009, the cost of the two events was absorbed during the comparative
year. Administration costs were in line with the prior year.
The decrease in gross profit of Euro 226 million resulted in an operating profit
decline of 14 per cent despite the cost control measures. The decline in
operating margin was contained to 1.9 percentage points to 16.0 per cent in the
year under review.
Profit for the year
in Euro millions 31 31 March 2009
March
2010
re-presented
Operating profit - continuing operations 830 968
Net finance costs ( 137) ( 101)
Profit before taxation 693 867
Taxation ( 94) ( 133)
Share of post-tax results of associated 4 3
undertakings
Profit from continuing operations 603 737
(Loss) / profit from discontinued operations ( 3) 339
Profit for the year 600 1 076
Attributable to shareholders 599 1 075
Attributable to minority interests 1 1
Profit for the year 600 1 076
Earnings per share from continuing operations Euro Euro 1.312
- diluted basis 1.076
The 18 per cent decline in profit from continuing operations included the
following factors:
- Net finance costs amounted to Euro 137 million, of which Euro 132 million
relates to currency translation losses on net financial assets as a result of a
stronger Swiss franc against the Euro. The majority of the Group`s financial
assets are Euro-denominated cash and liquid bond funds held by a Swiss franc
entity. Upon translation, there is no effect on the Group`s equity position.
- The Group`s effective taxation rate was 13.7 per cent compared with 15.7 per
cent last year. The lower rate is due principally to an increase in deferred
tax assets relating to the Group`s share option plan and an increase in the
share of profit generated in lower tax jurisdictions, such as Hong Kong.
- A Euro 4 million profit related to the Group`s share of the results of
associated companies.
Losses from discontinued operations amounted to Euro 3 million. In the
comparative year, the reported profit from discontinued operations primarily
related to the share of income in respect of the equity accounted interest in
British American Tobacco plc for the period to 20 October 2008 when it was
effectively distributed to shareholders as part of the Group`s restructuring.
As a consequence, profit for the year was Euro 600 million, compared to Euro 1
076 million in the prior year.
To comply with the South African practice of providing headline earnings per
share (`HEPS`) data, the relevant figure for headline earnings for the year
ended 31 March 2010 would be Euro 611 million (2009: Euro 1 093 million).
Diluted HEPS for the year was Euro 1.092 (2009: Euro 1.948). Further details
regarding HEPS may be found in note 29 of the Group`s consolidated financial
statements.
Cash flow statement
in Euro millions 31 March 2010 31 March 2009
Operating profit including losses 827 951
from discontinued operations
Depreciation, amortisation and 314 229
other non-cash items
Decrease/(increase) in working 323 ( 361)
capital
Cash generated from operations 1 464 819
Dividends received from associates 1 343
Interest (paid)/received ( 5) 36
Taxation paid ( 82) ( 179)
Net acquisitions of tangible fixed ( 147) ( 293)
assets
Net acquisitions of intangible ( 28) ( 43)
assets
Net cash flow in respect of short- ( 379) -
term bond funds
Other investing activities, net 35 ( 127)
Net cash inflow before financing 859 556
activities
Dividends paid ( 110) ( 438)
Decrease in borrowings and other ( 156) ( 59)
financing activities
Distribution of discontinued - ( 351)
operations, net of cash disposed
of
Net cash flow in respect of ( 99) ( 84)
treasury units and shares
Net change in cash and cash 494 ( 376)
equivalents
Cash and cash equivalents at the 1 363 1 771
beginning of the year
Reclassification of cash held in ( 956) -
bond funds
Exchange rate effects 39 ( 32)
Cash and cash equivalents at end 940 1 363
of year
Short-term bond funds 1 339 -
Borrowings ( 383) ( 541)
Net cash at the end of the year 1 896 822
Cash generated from operations totalled Euro 1 464 million for the year.
Compared to the prior year, the Euro 684 million decrease in working capital was
largely due to lower inventory levels resulting from measures taken to reduce
manufacturing output and to movements in liabilities in respect of foreign
exchange hedging activities.
At Euro 147 million, net acquisitions of tangible fixed assets were nearly
halved compared to the previous year. This amount included selected investments
in the Group`s network of boutiques as well as limited further investment in
manufacturing facilities.
Investing activities reported during the year included further investments in
short-term liquid bond funds. Net of disposals, these acquisitions amounted to
Euro 379 million.
During the year under review, the Group bought back 10 million `A` shares
through the market. The share buy-back programme was implemented largely to
hedge the Group`s increased exposure in respect of its own shares, linked to the
restructuring effected in 2008. The gross cost of these purchases, at Euro 153
million, was partly offset by proceeds from the exercise of stock options by
executives, leading to a net cash outflow of Euro 99 million.
Summarised balance sheet
in Euro millions 31 March 31 March
2010 2009
Non-current assets
Fixed assets 1 527 1 534
Other non-current assets 622 642
2 149 2 176
Net current assets excluding cash and 1 753 2 028
cash equivalents
Inventories 2 260 2 422
Debtors and other current assets 723 781
Current liabilities (1 230) (1 175)
Other non-current liabilities excluding ( 138) ( 191)
borrowings
Net operating assets 3 764 4 013
Net cash 1 896 822
Cash and cash equivalents 940 1 363
Short-term bond funds 1 339 -
Borrowings ( 383) ( 541)
5 660 4 835
Equity
Shareholders` equity 5 658 4 832
Minority interests 2 3
5 660 4 835
Excluding cash and cash equivalents, the Euro 275 million decrease in net
current assets compared to March 2009 is primarily attributable to the Euro 162
million decline in the value of net inventories to Euro 2 260 million.
At 31 March 2010, net cash amounted to Euro 1 896 million, an increase of Euro 1
074 million during the year. The Group`s holdings of short-term liquid bond
funds, which were reported within cash and cash equivalents at 31 March 2009,
were reclassified as a distinct asset class during April 2009. Liquid bond funds
and cash balances were primarily denominated in euros, whereas borrowings were
spread across the principal currencies of the countries in which the Group has
significant operations. Borrowings reflect the financing of net operating assets
in the countries concerned.
Shareholders` equity amounted to Euro 5 658 million, net of the cost of
repurchased treasury shares and related instruments. At 31 March 2010, the Group
held some 20 million treasury shares, representing 3.8 per cent of the total
number of the `A` shares in issue, as well as options to acquire a further 14
million `A` shares.
Richemont`s balance sheet remains very strong, with shareholders` equity
representing 73 per cent of the balance sheet compared to 65 per cent at 31
March 2009.
Proposed dividend
The Board has proposed an ordinary dividend of CHF 0.35 per share, up CHF 0.05
compared to last year.
The dividend will be paid as Gross Withholding Net payable
follows: dividend
per share tax @ 35% per share
Ordinary dividend CHF 0.3500 CHF 0.1225 CHF 0.2275
The dividend will be payable following the Annual General Meeting, which is
scheduled to take place on Wednesday, 8 September 2010.
It is currently anticipated that the last day to trade Richemont `A` shares and
Richemont South African Depository Receipts cum-dividend will be Friday, 10
September 2010.
The dividend on the Compagnie Financiere Richemont `A` shares will be paid on
Thursday, 16 September 2010. The dividend in respect of the `A` shares is
payable in Swiss francs.
The dividend in respect of Richemont South African Depository Receipts will be
payable on Monday, 27 September 2010. The South African Depository Receipt
dividend is payable in rand to residents of the South African Common Monetary
Area (`CMA`) but may, dependent upon residence status, be payable in Swiss
francs to non-CMA residents.
Review of operations
1. Analysis of sales and operating results by business area
Sales and operating results of the Group`s main areas of activity were as
follows:
in Euro millions 31 March 31 March 2009
2010
re-presented
Sales
Jewellery Maisons 2 688 2 762 - 3 %
Specialist watchmakers 1 353 1 437 - 6 %
Writing instrument Maison 551 587 - 6 %
Other 584 632 - 8 %
Total sales 5 176 5 418 - 4 %
Operating results
Jewellery Maisons 742 777 - 5 %
Specialist watchmakers 231 301 - 23 %
Writing instrument Maison 79 69 + 14 %
Other ( 36) ( 39) + 8 %
1 016 1 108 - 8 %
Corporate costs ( 186) ( 140) + 33 %
Central support services ( 147) ( 139) + 6 %
Other operating expense, net ( 39) ( 1) n/a
Operating profit 830 968 - 14 %
In accordance with requirements of International Financial Reporting Standard 8
- Operating Segments, the Group has reduced the total number of reportable
segments from five to four. Alfred Dunhill and Lancel, formerly reported as the
`Leather and Accessories Maisons` segment, have been reported within the `Other`
segment with effect from 1 April 2009. Comparative periods have been re-
presented accordingly. Consequently, the `Other` segment now includes all of the
Group`s Fashion and Accessories businesses, as well as the Group`s watch
component manufacturing activities.
Jewellery Maisons
Sales decreased by only 3 per cent, a notable achievement given the trading
environment. The very top-end of the high jewellery market has not recovered
past record levels, but the more traditional high jewellery and more accessible
bijoux ranges did well. Watches resisted much better than the market generally,
thanks to strong retail sales.
Operating contribution declined by 5 per cent. Nevertheless, the contribution
margin was maintained at the high level of 28 per cent.
Cartier saw only a marginal decline in sales and profitability and was able to
make the most of its broad geographic coverage and leading position in growth
markets.
Van Cleef & Arpels was also resilient, albeit to a lesser extent, due to a
proportionately higher exposure to Europe and the US.
Specialist Watchmakers
Sales by the Group`s specialist watchmakers are made principally to third party
retailers. Many such retailers prudently sought to reduce their inventories
during the latter part of the 2009 financial year and the first half of the year
under review, given the impact of the financial crisis which began in September
2008 on their own businesses. Consequently, orders for new stock were
significantly curtailed. As a result, the Group`s specialist watchmakers
reported a sales decrease of 17 per cent during the first six months of the year
under review. Sales in the second half of the year under review increased
against the low comparative base seen in the prior year, thus limiting the year-
on-year decline to 6 per cent.
Piaget and Vacheron Constantin performed particularly well and were able to grow
sales in this difficult period.
While all Maisons, with the exception of Roger Dubuis and Baume & Mercier,
remained profitable, their contribution margin decreased by 4 percentage points
to 17 per cent of sales. This decrease was primarily due to reductions in gross
margin, reflecting a stronger Swiss franc in particular, as well as the slowdown
in sales and production. Excluding the two loss-making Maisons, the contribution
margin would be above 20 per cent, reflecting the strength of this portfolio.
The slowdown prompted the watchmaking Maisons to effectively reduce
manufacturing output to limit a build-up of inventory. The favourable year-on-
year impact on profit arising from two SIHH events in the prior year was
partially offset by a one-off charge relating to the Roger Dubuis business and
the costs associated with the reduction of the number of points of sale in the
Americas and Europe.
Writing instrument Maison
Montblanc managed to contain the decline in sales to 6 per cent. This sales
performance was achieved thanks to the resilience of writing instruments and
watches, higher retail sales and a leading position in China. This is
particularly encouraging given its exposure to the US, Europe and an
`aspirational` clientele more sensitive to economic slowdowns.
Operating profit showed a healthy 14 per cent increase to Euro 79 million and
the Maison`s contribution margin gained 2 percentage points to 14 per cent.
Other businesses
The Euro 36 million loss in `Other` businesses can be primarily attributed to
the significant decrease in sales that affected the Group`s watch component
manufacturing activities, as they suffered from a 60 per cent fall in orders
from other manufacturers.
Richemont`s Fashion & Accessories Maisons improved their performance. The retail
exposure, shorter life cycle and more accessible price points of leather
products were factors in their resilience, linked to the repositioning of most
of these Maisons. Lancel was particularly successful over the period. Alfred
Dunhill and Lancel were close to break-even while Chloe remained profitable.
Other Fashion & Accessories businesses in this segment include Shanghai Tang,
Maison Alaia and Purdey.
Corporate costs
Corporate expenses, which principally represent the costs of central management,
marketing support and other central functions, as well as other expenses and
income which are not allocated to specific business areas, including foreign
exchange hedging gains and losses, were kept under tight control. Central
support service expenses increased by 6 per cent to Euro 147 million. Excluding
asset impairment charges and fees in respect of the NET-A-PORTER transaction,
central support service expenses were in line with the prior year. Other
operating expenses included losses of Euro 14 million relating to the Group`s
exchange rate hedging programme, which are charged to the gross margin. In the
comparative period, unallocated exchange rate hedging gains amounted to Euro 12
million.
2. Sales by region
Movement at:
Constant Actual
in Euro millions 31 March 31 March exchange exchange
2010 2009 rates* rates
Europe 2 099 2 363 - 11 % - 11 %
Asia-Pacific 1 740 1 474 + 17 % + 18 %
Americas 712 889 - 20 % - 20 %
Japan 625 692 - 17 % - 10 %
5 176 5 418 - 5 % - 4 %
*Note: movements at constant exchange rates are calculated translating
underlying sales in local currencies into euros in both the current year and the
comparative year at the average exchange rates applicable for the financial year
ended 31 March 2009.
Europe
Within the Group`s number one region, with 40 per cent of consolidated sales,
sales declined by 11 per cent to end just above the level seen in 2007. The
beginning of the year was difficult, with sales down by 21 per cent for the
first six months. November was the turning point. Sales rose by a modest 1 per
cent in the second half.
Demand from the local European clientele was particularly affected, while sales
to third party nationals from Eastern Europe, the Middle-East and Asia were more
resilient.
Asia-Pacific
Up 17 per cent at constant exchange rates compared to the prior year, sales in
the region recorded their fifth consecutive year of double-digit growth. Asia-
Pacific now represents 34 per cent of Group sales. This strong performance was
broad-based across the region, leveraging the Maisons` continued expansion of
their distribution networks in that market. Hong Kong, mainland China and Macau,
all enjoyed double-digit growth in sales. Sales in Taiwan, Singapore and Korea
grew as well, albeit at a lower rate.
Americas
The Americas region, now 14 per cent of Group sales, registered a 20 per cent
reduction in sales. The significant decline is entirely attributable to the US
where, after years of double-digit growth, sales fell dramatically. This
collapse in the first half of the year under review was followed by a rebound in
the second half of the year, when sales rose by 8 per cent, partly explained by
easier comparative figures.
Japan
The Japanese market, Richemont`s second largest single market with 12 per cent
of Group sales, remained challenging throughout the year for luxury businesses
generally. Yen-denominated sales declined by 17 per cent. The appreciation of
the yen over the period softened the decline to 10 per cent in euro terms.
3. Sales by distribution channel
in Euro millions 31 March 31 March
2010 2009
Retail 2 385 2 304 + 4 %
Wholesale 2 791 3 114 - 10 %
5 176 5 418 - 4 %
Retail
Sales in directly operated stores proved to be quite resilient: up 4 per cent, a
performance well above the 10 per cent decline in wholesale sales. As a result,
retail now represents 46 per cent of the Group`s sales, a historical high.
During the year, the overall retail network of Group-owned boutiques increased
to 817 boutiques. Store openings in growing markets, such as Hong Kong and
mainland China, were partly offset by the closure of under-performing boutiques
across the Group.
Wholesale
The 10 per cent decline reflects de-stocking by watch retailers until November,
and the continuing reduction in the number of external doors Richemont`s Maisons
deal with. Sales to franchise partners are treated as wholesale sales.
Full consolidated financial statements
Richemont`s audited consolidated financial statements for the year may be found
on the Group`s website at http://www.richemont.com/reports.html
The Group`s income statement, including notes regarding the re-presentation of
the comparative figures is presented in Appendix 1.
Richard Lepeu
Deputy Chief Executive Officer
Gary Saage
Chief Financial Officer
Presentation
The full year results will be presented via a live internet webcast on 27 May
2010, starting at 09:30 (CET). The direct link will be available from 07:30 at:
http://www.richemont.com
- Live listen-only telephone connection
Call one of these numbers 10 minutes before the start of the presentation:
Europe: +41 (0) 91 610 56 00 - USA: +1 (1) 866 291 4166
UK: +44 (0) 207 107 0611 - Toll Free South Africa: 0800 992 635
- An archived video webcast and podcast of the presentation will be available
from:
http://www.richemont.com/reports_and_presentations.html
- A transcript of the presentation will be available from:
http://www.richemont.com/reports_and_presentations.htm
Annual Report
The Richemont 2010 Annual Report and Accounts will be published on or around 14
July 2010 and will be available for download from the Group`s website; copies
may be obtained from the Company`s registered office or by contacting the
Company via the website at http://www.richemont.com/contact.html
Compagnie Financiere Richemont SA
Registered office:
50 chemin de la Chenaie
1293 Bellevue Geneva
Switzerland
Tel: (+41) (0) 22 721 3500
Fax: (+41) (0) 22 721 3550
Statutory Information
`A` shares issued by the Swiss parent company, Compagnie Financiere Richemont
SA, are listed and traded on the SIX Swiss Exchange, (Reuters "CFR.VX" /
Bloomberg "CFR:VX" / ISIN CH0045039655) and are included in the Swiss Market
Index (`SMI`) of leading stocks. The Swiss `Valorennummer` is 4503965.
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).
The closing price of the Richemont `A` share on 31 March 2010 was CHF 40.83 and
the market capitalisation of the Group`s `A` shares on that date was CHF 21 313
million. Over the preceding year, the highest closing price of the `A` share was
CHF 41.73 (18 March 2010), and the lowest closing price of the `A` share was CHF
18.52 (1 April 2009).
Internet: www.richemont.com
Media contacts
Alan Grieve
Director of Corporate Affairs
Tel: +41 22 721 3507
E-mail: pressoffice@cfrinfo.net
Investor contacts
Sophie Cagnard
Head of Investor Relations
Tel +33 1 58 18 25 97
E-mail: investor.relations@cfrinfo.net
Appendix 1
Group results
in Euro millions 31 March 31 March 2009
2010
re-presented
Sales 5 176 5 418 - 4 %
Cost of sales (1 985) (2 001)
Gross profit 3 191 3 417 - 7 %
Net operating expenses (2 361) (2 449) - 4 %
Operating profit 830 968 - 14 %
Net financial costs ( 137) ( 101)
Share of post-tax results of 4 3
associates
Profit before taxation 697 870 - 20 %
Taxation ( 94) ( 133)
Profit from continuing operations 603 737 - 18 %
(Loss) / profit from discontinued ( 3) 339 n/a
operations, net of tax
Profit for the year 600 1 076 - 44 %
Analysed as follows:
attributable to shareholders 599 1 075
attributable to minority interests 1 1
600 1 076
Earnings per share from continuing Euro Euro 1.312 - 18 %
operations - diluted basis 1.076
Dividend per share CHF 0.35 CHF 0.30 17 %
Re-presentation of the comparative period
The income statement presented in this document for the period ended 31 March
2009 has been re-presented to reflect the non-disposal of a small business unit
previously classified as a discontinued operation. The impact on sales in the
comparative year is nil; operating profit is now re-presented at Euro 968
million (previously presented at Euro 982 million).
Consolidated financial statements
The Group`s audited consolidated financial statements are available on the
Group`s website at http://www.richemont.com/reports.html
Notes for South African editors
Acknowledging the interest in Richemont`s results on the part of South African
investors, set out below are key figures from the results expressed in rand. The
average euro/rand exchange rate prevailing during the year ended 31 March 2010
was 11.042; this compares with a rate of 12.489 during the prior year.
in ZAR millions 31 March 31 March
2010 2009
re-presented
Sales 57 153 67 665 - 16
%
Operating profit 9 165 12 089 - 24
%
Profit from continuing operations 6 658 9 204 - 28
%
(Loss) / profit from discontinued ( 33) 4 234 n/a
operations
Profit for the year 6 625 13 438 - 51
%
Analysed as follows
Net profit attributable to 6 614 13 426
shareholders
Net profit attributable to minority 11 12
interests
6 625 13 438
Earnings per depository receipt
from
continuing operations - diluted ZAR 1.1881 ZAR 1.6386 - 27
basis %
Headline earnings per depository
receipt
from continuing and discontinued ZAR 1.2058 ZAR 2.4329 - 50
operations - diluted basis %
No one-off charges have been disclosed in the year under review. The comparative
figure in the prior year was ZAR 987 million or Euro 79 million.
The Group`s share of the results of its former associate, British American
Tobacco, is included within discontinued operations in the table above.
Subject to approval of the shareholders at the annual general meeting, scheduled
to take place on 8 September 2010, it is currently anticipated that the dividend
will be paid to Richemont Depository Receipt holders on 27 September 2010. The
rand dividend amount per Depository Receipt will be calculated by reference to
the Swiss franc/rand exchange rate prevailing on the currency conversion date in
September 2010.
Richemont Securities AG Depository Receipts are issued subject to the terms of
the Deposit Agreement dated 25 August 1988 as amended on 18 December 1992, 28
September 2001 and 7 August 2008. By holding Depository Receipts, investors
acknowledge that they are bound by the terms of the Deposit Agreement. Copies of
the Deposit Agreement may be obtained by investors from Richemont Securities AG
or Computershare Limited.
Copyright Richemont 2010
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Compagnie Financiere Richemont SA
50, Chemin de la Chenaie 1293 Bellevue - Geneva Switzerland
Telephone +41 (0)22 721 3500 Telefax +41 (0)22 721 3550
www.richemont.com
27 MAY 2010
Date: 27/05/2010 07:56:27 Produced by the JSE SENS Department.
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