| Thu 15 Nov 2001, 0:00 | | Richemont - Interim Results |
|
Richemont Securities AG
Richemont, the Swiss luxury goods group, announces its unaudited results for
the six month period ended 30 September 2001
September 2001 September 2000
Sales Euro 1 836 m Euro 1 669 m +10%
Operating profit Euro 253 m Euro 319 m -21%
Attributable profit
- parent and
subsidiaries Euro 165 m Euro 227 m -27%
- share of associated
companies Euro 260 m Euro 236 m +10%
- the Group Euro 425 m Euro 463 m -8%
Earnings per unit -
fully diluted basis Euro 0.754 Euro 0.823 -8%
The results presented above exclude the effects of goodwill amortisation and
exceptional items from both periods.
* Sales increased by 10 per cent to Euro 1 836 million, largely reflecting
the inclusion for the first time of the sales of Jaeger-LeCoultre, IWC and
A. Lange & Sohne. On a like-for-like basis, sales increased by 2 per cent
from the prior year's level.
* Jewellery sales - being principally through Cartier and Van Cleef & Arpels
- grew by 4 per cent in the period whilst watch sales, including the sales
of the acquired businesses, grew by 14 per cent. Sales of writing
instruments, reflecting the continuing success of Montblanc, increased by 18
per cent.
* Sales in Europe grew by 24 per cent, or by 8 per cent adjusting for sales
reported by the newly acquired brands. In Asia, sales were some 5 per cent
higher, reflecting the continued strength of the Japanese market, offset by
weakness in other territories. In the Americas, sales fell by 6 per cent, as
a result of the particularly poor economic environment in the United States.
* Operating expenses increased by 20 per cent, reflecting the continued
investment in the Group's infrastructure, marketing and communication
programmes, as well as the inclusion for the first time of the newly
acquired watch brands. This resulted in an overall decline of 21 per cent in
operating profit.
* The Group's equity accounted share of the results of its investment in
British American Tobacco amounted to Euro 260 million, an increase of 10 per
cent over the contribution from associated companies in the prior year.
* Richemont units were split in the ratio 100 to 1 with effect from 12
November 2001. Earnings per unit for the period on a fully diluted basis,
restated to reflect the split, decreased by 8 per cent from Euro 0.823 to
Euro 0.754.
Commentary
Commenting on the results, Mr Johann Rupert, Group Chief Executive said:
"Since October of last year, the luxury goods industry has experienced a
slowdown in demand. In recent months this trend has been exacerbated,
reflecting the worsening economic situation in the United States, Europe and
Asia. The events of 11 September have clearly had a significant negative
impact on the economic climate and the mood of all consumers. The outlook
for the second half of the current year is therefore not promising.
Richemont's `Maisons' have the capacity to endure these difficulties, having
survived various slowdowns during the course of their respective histories.
Their focus on products of enduring value in terms of jewellery, watches and
writing instruments, together with the geographic balance of the Group's
sales, add to their strength. This will enable them to continue to prosper
once the economy improves and consumer confidence returns.
Over the past few years we have often expressed concerns about the
sustainability of the `boom economy', and have purposely avoided adding
financial leverage to operating leverage. Richemont is thus in the fortunate
position of having a sound balance sheet, with low financial leverage and a
good cash flow from its interest in British American Tobacco. As such, the
Group is well placed to weather the storm whilst continuing to invest in its
underlying businesses."
Business Review
Sales and operating profit
The acquisition of Jaeger-LeCoultre, IWC and A. Lange & Sohne was completed
in December 2000 and the results of these companies have been included in
the Group's financial statements with effect from 1 January 2001. Sales and
operating profit for the six months ended 30 September 2001 therefore
include the full incremental impact of these acquisitions.
Sales in the six months under review reflected the depressed economic
environment. On a like-for-like basis - reflecting sales of the newly
acquired brands in the results of both the current and the prior periods -
revenues to end-August 2001 showed growth of some 5 per cent. However, sales
for the month of September declined by 13 per cent such that, for the six
month period as a whole, like-for-like sales were 2 per cent above the level
seen in the prior year. Including the results of the newly acquired entities
only in the current period, sales increased by some 10 per cent overall.
Sept 2001 Sept 2000
Euro m Euro m
Sales 1 836 1 669 +10%
Cost of sales (644) (565)
Gross margin 1 192 1 104 +8%
Net operating expenses (939) (785) +20%
Operating profit 253 319 -21%
The decline in the gross margin percentage from 66.1 per cent to 64.9 per
cent reflects a slightly negative impact of exchange rate movements,
together with a shift in the Group's sales mix towards wholesale as a result
of the inclusion of Jaeger-LeCoultre, IWC and A. Lange & Sohne for the first
time.
Operating expenses increased by 20 per cent in the period, reflecting the
continued investment in the Group's infrastructure, marketing and
communication programmes, many of which were initiated over the course of
the prior financial year. Also included for the first time in the results
for the period under review are the costs associated with the newly acquired
watch brands.
Infrastructure investments include the costs of establishing selling and
distribution organisations in a number of regions. These regional structures
will provide services across all of the Group's businesses and will
facilitate the integration of the sales and distribution activities of
Jaeger-LeCoultre, IWC and A. Lange & Sohne. This will be particularly true
in territories where these brands are currently under-represented.
Van Cleef & Arpels has expanded its presence in the Japanese retail market
through the acquisition of its distribution network there and Lancel has
moved into the important U.S. market. The significant expansion of
Montblanc's retail presence, particularly in the United States, has also
increased its cost base. Linked in part to the expansion of these
businesses, communications costs also rose during the period under review.
Recognising the need to meet the high standards of after-sales service
demanded by clients, Richemont has also invested in enhancing its
capabilities in this area. New regional after-sales service centres have
been opened and others expanded to offer customers a faster response time
for servicing and repairs. This strategy inevitably involves an increased
cost base but will ensure an even higher standard of customer service in the
future.
The significant increase in operating expenses resulted in an overall
decline in operating profit of some 21 per cent to Euro 253 million.
Sales by product line
Sept 2001 Sept 2000
Euro m Euro m
Jewellery 394 379 +4%
Watches 877 772 +14%
Gold and jewellery
watches 452 374 +21%
Other watches 425 398 +7%
Leather goods 138 136 +1%
Writing instruments 129 109 +18%
Clothing and other 298 273 +9%
1 836 1 669 +10%
Sales of jewellery product lines grew by 4 per cent over the same period
last year. Cartier's classic jewellery collections, including the Cartier de
Lune range launched in 2000, continued to perform well. The launch of the
new Alhambra range by Van Cleef & Arpels was also well received.
Sales of watches include for the first time the results of Jaeger-LeCoultre,
IWC and A. Lange & Sohne. Overall, watch sales increased by 14 per cent
but, excluding the impact of acquisitions, fell by 3 per cent, reflecting a
general weakness in demand. Gold and jewellery watch sales benefited from
strong performances by Piaget and Vacheron Constantin together with the
Collection Priv e by Cartier.
Sales of leather goods showed a marginal improvement, a strong performance
by Montblanc in this product area being offset by a decline at Dunhill.
Sales by both Cartier and Lancel showed modest increases.
Montblanc's core writing instrument business performed strongly in the
period under review, being the principal factor behind the 18 per cent
growth reported in this product category. Montblanc is significantly
expanding its retail distribution network, with a positive impact on both
sales and gross margin percentage. The Boheme range continues to enjoy wide
appeal and increased sales.
Clothing and other products have benefited from increased sales of
fragrances and eyewear with new product launches from Cartier, Dunhill and
Montblanc. Chloe has also enjoyed good growth, albeit from a small base. The
repositioning of the Dunhill brand has seen a fall in sales as the
transition is implemented across the company's markets.
Sales by region
Sept 2001 Sept 2000
Euro m Euro m
Europe 815 657 +24%
Asia 688 658 +5%
Americas 333 354 -6%
1 836 1 669 +10%
In Europe, underlying sales excluding the impact of acquisitions grew by 8
per cent during the period. Jaeger-LeCoultre, IWC and A. Lange & Sohne are
however strongly represented in this region such that, overall, sales
increased by some 24 per cent to Euro 815 million.
In Asia as a whole, underlying sales were broadly in line with the prior
year's levels, the increase of 5 per cent being largely due to the three
watch brands being included for the first time. Within the region, sales in
Japan grew by 6 per cent on a like-for-like basis.
Overall, sales in the Americas fell by 6 per cent over the six month period,
the depressed market conditions being exacerbated by the reaction to the
events of September 11. During the month of September alone, like-for-like
sales in the United States declined by 42 per cent.
Sales by distribution channel
Sept 2001 Sept 2000
Euro m Euro m
Retail sales 722 721 -
Wholesale sales 1 114 948 +18%
1 836 1 669 +10%
The retail distribution channel showed no growth in sales for the six month
period whilst wholesale sales on a like-for-like basis, increased by 3 per
cent. The 18 per cent growth in wholesale sales therefore largely reflected
the inclusion of Jaeger-LeCoultre, IWC and A. Lange & Sohne for the first
time. Retail sales as a percentage of total sales moved from 43 per cent to
39 per cent. This reflected the change in distribution mix due to the
inclusion of the three new watch brands for the first time.
At 30 September, the Group operated some 497 owned stores with a further 272
stores operated by external partners.
Consolidated profit and loss account
The summary profit and loss account as well as the earnings per unit
information set out below is presented on an adjusted basis, excluding the
effects of goodwill amortisation and exceptional items from the results of
both periods. A reconciliation of the profit and loss account on this basis
to the result on a reported basis is presented as an appendix to this
announcement.
Sept 2001 Sept 2000
Euro m Euro m
Operating profit 253 319
Net investment
income/(expense) (26) 5
Profit before taxation 227 324
Taxation (65) (96)
Profit after taxation 162 228
Minority interests 3 (1)
Attributable profit
of the parent and
its subsidiaries 165 227
Share of attributable
profit of associates: 260 236
British American Tobacco 260 250
Hanover Direct - (14)
Attributable profit
of the Group 425 463
Earnings per
unit - basic Euro 0.761 Euro 0.831
Earnings per unit
- fully diluted Euro 0.754 Euro 0.823
Net investment expense was Euro 26 million during the period, compared to
income of Euro 5 million in the prior period. The realisation of part of
the holding of preference shares in British American Tobacco in June 2000
gave the Group a net cash position for the latter part of the comparative
period. In contrast, the Group has been in a net borrowing situation during
the period under review, following the investment in Jaeger-LeCoultre, IWC
and A. Lange & Sohne in December 2000. The prior period also reflected the
inclusion of dividend income of Euro 18 million from the Group's investment
in Vivendi, which was subsequently sold.
Earnings per unit
Following the 100 to 1 split of Richemont units on 12 November 2001, basic
earnings per unit has been calculated by reference to the weighted average
number of units outstanding during the period of 558.2 million (2000: 557.7
million) units and the attributable profit of the Group on an adjusted basis
of Euro 425 million (2000: Euro 463 million) for the period. The number of
units outstanding takes into account the effects of the Group's buy-back
programme.
Fully diluted earnings per unit is calculated by reference to 574.2 million
units outstanding (2000: 574.2 million units) and attributable profit on an
adjusted basis for the period of Euro 433 million (2000: Euro 472 million)
which reflects the notional additional interest of Euro 8 million (2000:
Euro 9 million) which would have accrued to the company had the full number
of units been outstanding during the period.
Associated companies
The Group's share of the results of associated companies increased by 10 per
cent to Euro 260 million. Whereas the results for the comparative period
included the Group's share of the losses reported by Hanover Direct as well
as its share of the profit reported by British American Tobacco, the figure
in respect of the current period is solely in respect of the Group's
interest in British American Tobacco.
In June 2000, Richemont exercised its put options over one half of its
holding of BAT preference shares, reducing its effective interest in that
company from 23.3 per cent to 21.1 per cent for the latter part of that six
month period. In the period under review, Richemont has equity accounted its
effective 21.1 per cent interest in BAT for the full six month period.
Notwithstanding the reduction in its effective interest, Richemont's share
of the results of BAT is some Euro 10 million higher at Euro 260 million.
This reflects an increase of some 8 per cent in BAT's adjusted earnings per
unit on a fully diluted basis, arguably the best measure of that company's
underlying performance.
British American Tobacco performed well in the nine month period to end
September. Sales volumes, at 602 billion cigarettes, were slightly above the
prior year's level, with international brands increasing by more than 2 per
cent in that period. BAT's key global brands achieved an overall growth of 9
per cent in the period.
Each of the company's operating regions contributed to the good overall
performance. Profits were well ahead in all the main America-Pacific markets
and, although market share in the US domestic business was down on the prior
year, there are now some encouraging trends in the market place.
In Asia Pacific, profit increased despite deteriorating overall economic
conditions in South-East Asia, while in Latin America profit benefited from
good performances in several markets, where market shares were generally
higher. In the Africa, Middle East and Central Asia region, excellent profit
growth was combined with slightly higher volumes.
The underlying profit in Europe was also driven by volume growth, as the
region continues to build on the benefits of the merger with Rothmans
International. Volume increases reflected excellent growth in Eastern
Europe, offset by market size reductions in the Netherlands, Belgium and the
UK.
During the six month period under review, Richemont received a total of Euro
228 million in dividends from BAT. This comprised both the final dividend in
respect of BAT's financial year ended 31 December 2000 and the 2001 interim
dividend, received in September.
Consolidated cash flow statement
Sept 2001 Sept 2000
Euro m Euro m
Operating profit 253 319
Depreciation and
other non-cash items 91 47
Increase in
working capital (378) (79)
Net cash inflow/(outflow)
from operating activities (34) 287
Dividends received
from associates 228 236
Returns on investments
and servicing of finance (24) 7
Taxation paid (117) (64)
Net acquisitions of
tangible fixed assets (147) (82)
Buy-back of
Richemont units - (142)
Proceeds on redemption
of BAT preference shares - 741
Proceeds of disposal
of Vivendi shares - 1 176
Other acquisitions
and investments (154) (226)
Net cash inflow/(outflow)
before financing
activities (248) 1 933
Repayment of
long-term borrowings (69) (677)
Equity contribution
by minority 20 -
Exchange rate effects 23 (39)
Increase/(decrease)
in cash, cash equivalents
and short-term borrowings (274) 1 217
Cash and cash equivalents
at beginning of period (375) (291)
Cash and cash equivalents
at end of period (649) 926
Net cash outflow from operating activities during the period amounted to
Euro 34 million, the operating profit being more than offset by the higher
level of working capital. This reflected the generally difficult trading
environment and the shortfall in sales compared to planned levels.
Dividends received from associates reflects those received from BAT, being
the final dividend in respect of BAT's financial year ended 31 December 2000
and the interim dividend in respect of the 2001 financial year.
Other acquisitions and investments during the period under review include
the acquisition of a further 20 per cent interest in Van Cleef & Arpels,
increasing the Group's effective interest from 60 per cent to 80 per cent.
During the period under review, the Group has also strengthened its
manufacturing base through the acquisition of Petitjean, a Swiss producer of
watch components.
In June 2000, the Group put one half of its holding of BAT preference shares
back to that company under the terms of the agreement relating to the merger
of BAT and Rothmans International. The resultant proceeds totaled Euro 741
million. The proceeds from the disposal of the Group's interest in Vivendi
in September 2000 totaled Euro 1 176 million.
Consolidated balance sheet
30 Sept 2001 31 March 2001
Euro m Euro m
Fixed assets
Tangible 779 691
Investments in
associated companies 616 507
Other investments 419 355
1 814 1 553
Net working capital 1 589 1 482
Net operating assets 3 403 3 035
Goodwill 5 910 6 036
Net cash borrowings (1 255) (1 048)
Cash, cash equivalents
and short-term borrowings (649) (375)
Long-term borrowings (606) (673)
Other long-term
liabilities (158) (161)
7 900 7 862
Capital employed
Unitholders' funds 7 810 7 737
Minority interests 90 125
7 900 7 862
Tangible fixed assets increased by Euro 88 million, largely reflecting
further investment in the Group's retail network and manufacturing
infrastructure, net of depreciation.
The increase in the investments in associated companies represents the
increase in the Group's equity accounted share of the net assets of British
American Tobacco.
Changes in unitholders' funds
Sept 2001 Sept 2000
Euro m Euro m
Profit attributable
to unitholders on
an adjusted basis 425 463
Goodwill amortisation (192) (151)
Exceptional items: (18) 706
- gain on the sale of
investment in Vivendi - 533
- gain on partial
disposal of BAT
preference shares - 189
- as reported by
associated companies (18) (16)
Profit attributable
to unitholders on a
reported basis 215 1 018
Dividend declared (168) (133)
Unit based executive
compensation scheme reserve 41 (142)
Translation and
other adjustments (15) 43
Net increase in
unitholders' funds 73 786
Unitholders' funds
at the beginning
of the period 7 737 6 732
Unitholders' funds at
the end of the period 7 810 7 518
Unitholders' funds increased by Euro 73 million during the period, the
attributable profit for the period being offset by the dividend declared and
accounting adjustments.
At the annual meeting of shareholders held in September 2001, a dividend of
Euro 30 per unit (Euro 0.30 per unit on a post-split basis) was approved, a
total of Euro 168 million being paid to unitholders on 1 October 2001.
The increase in unitholders' funds in respect of the unit-based executive
compensation scheme reserve reflects the value of units sold to executives
under the Group's unit purchase scheme. In the prior period, the decrease in
unitholders' funds related to the buy-back of units for the purposes of the
unit purchase and related option schemes, net of sales to executives.
Accounting policies
The interim financial statements have been prepared in accordance with the
same accounting policies as those set out on pages 51 to 53 of the Annual
Report for the year to 31 March 2001.
Richemont will implement `IAS 39-Financial Instruments' in its financial
statements for the year ending 31 March 2002. No adjustment has been made in
the financial statements for the period ended 30 September 2001 to reflect
the requirements of this Accounting Standard on the basis that the
adjustment is not material.
Swiss Stock Exchange compliance
These interim financial statements comply with the listing rules of the
Swiss Stock Exchange.
Outlook for the year
Current trading conditions, as evidenced by the results of the first six-
month period, are difficult. The effects of the global recession, compounded
by more recent events, have seriously dampened consumer demand. Sales in the
month of October, on a like-for-like basis, were some 8 per cent below last
year's level and we do not expect to see any meaningful improvement in the
critical pre-Christmas season. As in prior years, we will be commenting in
mid-January on trading during the third quarter.
The programme of investment in the Group's manufacturing and distribution
infrastructure, in marketing and in communication will continue.
Nevertheless, additional steps have been taken to closely monitor and
evaluate all administrative expenses and infrastructure programmes. In
consequence, the rate of growth in operating expenses in the second six
months is expected to be in the region of half that seen in the first six
months. In the light of the slowdown in sales, however, we currently expect
to see a significantly higher rate of decline in operating profit in the
second six months compared with that reported in respect of the first half
year.
We would emphasise that Richemont's long-term commitment to the development
of its businesses remains unchanged. Significant investment programmes have
been launched to consolidate the Group's position as a leader in the luxury
watch industry. In Switzerland, the new Piaget factory in Geneva is now in
full production and the construction of the third Cartier production
facility in the canton of Fribourg is well advanced. Detailed design and
planning work continues in respect of the new Vacheron Constantin
headquarters and production centre in Geneva, whilst land has been acquired
for the significant expansion of Jaeger-LeCoultre's Le Sentier factory.
IWC's production capacity in Schaffhausen will also be expanded further. The
Group's principal distribution facility in Fribourg, which is strategically
located close to the various Swiss production centres, will also benefit
from further investment and will become a focal point for the Group's IT
infrastructure.
Richemont has a strong balance sheet and benefits from a significant
dividend flow from its investment in British American Tobacco. The Group is,
therefore, well able to weather the current economic downturn and has the
resources to continue to invest in its core businesses for the future.
Whilst the current year - in contrast to the record performance seen last
year - will be disappointing, we must not lose sight of the core values of
the Group's businesses. Richemont's `maisons' have a heritage, which, for
most of them, goes back over a century. During that period there have been
many setbacks but the inherent strength and appeal of the businesses have
endured and allowed them to reach the prestigious positions they enjoy
today. We therefore remain confident in the long-term potential for the
future development of Richemont's businesses.
Nikolaus Senn Johann Rupert
Chairman Group Chief Executive
Compagnie Financi re Richemont AG Zug, 14 November 2001
Appendix 1
Consolidated profit and loss account on a reported basis
Notes Sept 2001 Sept 2000
Euro m Euro m
Operating profit 253 319
Goodwill amortisation 1 (91) (48)
Exceptional items 2 - 722
Profit before net
investment income/(expense)
and taxation 162 993
Net investment
income/(expense) (26) 5
Profit before taxation 136 998
Taxation (65) (96)
Profit after taxation 71 902
Minority interests 2 1
Attributable profit
of the parent and
its subsidiaries 73 903
Share of attributable
profit of associates 142 115
Share of attributable
profit on an adjusted basis 260 236
Goodwill amortisation
in respect of associates (100) (105)
Share of exceptional
items reported by associates (18) (16)
Attributable profit of
the Group on a
reported basis 3 215 1 018
A summary of the effects
of goodwill amortisation
and exceptional items
on profit attributable
to unitholders
is shown below:
Attributable profit of
the Group on a
reported basis 215 1 018
Elimination of goodwill
amortisation 1 192 151
Reported by the parent
and its subsidiaries 91 48
In respect of associates 100 105
Minority interests 1 (2)
Elimination of
exceptional items 18 (706)
Gain on the sale of
investment in Vivendi - (533)
Gain on the partial
disposal of BAT
preference shares - (189)
Items reported by BAT 18 16
Attributable profit
of the Group on an
adjusted basis 425 463
Note 1 - Goodwill amortisation
The reported results reflect the Group's accounting policy of amortising
goodwill through the consolidated profit and loss account. The goodwill
amortisation charge at the pre-tax profit level for the six months ended 30
September 2001 was Euro 91 million. An additional goodwill amortisation
charge of Euro 100 million arises in respect of the Group's interest in
associated companies, all of which relates to the Group's investment in BAT.
The goodwill amortisation relating to minority interests is in respect of
goodwill arising on the acquisition of Van Cleef & Arpels.
Note 2 - Exceptional items
The exceptional items appearing in the six month ended 30 September 2000
comprise the following:
a) Gain on partial disposal of BAT preference shares
The exceptional gain of Euro 189 million represented Richemont's gain on the
partial disposal of its holding of BAT preference shares. Under the terms of
the merger agreement between Richemont, Remgro Limited (Remgro is the
successor company to the former Rembrandt Group Limited) and BAT, up to half
of the convertible redeemable preference shares were redeemed for cash at a
fixed price of 5.75 per share on 7 June 2000. As a result, Richemont and
Remgro have redeemed a total of 120.8 million convertible redeemable
preference shares, resulting in a cash payment to Richemont of 463 million
or Euro 741 million on 7 June 2000. The gain was calculated on the basis of
the redemption proceeds less the value of the share of BAT's net assets
attributable to the preference shareholding at the date of transaction
together with goodwill and costs related thereto. On a consolidated basis
there was no tax effect.
b) Gain on sale of the investment in Vivendi
The exceptional gain in the six months to 30 September 2000 represented
Richemont's gain on disposal of its holding of 17.5 million shares in
Vivendi. The gain of Euro 533 million was calculated by reference to the
proceeds less the carrying value of Vivendi together with costs related
thereto. The Group had previously hedged the value of the investment such
that the net proceeds on disposal amounted to Euro 1 176 million. Once
again, on a consolidated basis there was no tax effect.
Note 3 - Earnings per unit on a reported basis
Sept 2001 Sept 2000
Earnings per unit on a
reported basis - basic Euro 0.385 Euro 1.825
Earnings per unit on a
reported basis
- fully diluted Euro 0.388 Euro 1.788
Basic earnings per unit is calculated by reference to the weighted average
number of units outstanding during the year of 558.2 million units (2000:
557.7 million) and the attributable profit of the Group of EURO 215 million
for the period (2000: EURO 1 018 million). The number of units outstanding
takes into account the effects of the Group's buy-back programme.
Fully diluted earnings per unit is calculated by reference to
574.2 million units outstanding (2000: 574.2 million units) and attributable
profit for the period of EURO 223 million (2000: EURO 1 027 million) which
reflects the notional additional interest of EURO 8 million (2000:
EURO 9 million) which would have accrued to the company had the full number
of shares been outstanding during the period.
Appendix 2
Exchange rates used in preparation of this report
The results of the Group's subsidiaries and associates which do not report
in euros have been translated at average rates of exchange against the euro.
Average exchange rates against the euro 6 months to 6 months to
30 Sept 2001 30 Sept 2000
Pounds sterling 0.62 0.61
Swiss franc 1.52 1.55
U.S. dollar 0.88 0.92
Japanese yen 107.81 98.61
Closing exchange rates against the euro 30 Sept 2001 30 Sept 2000
Pounds sterling 0.62 0.60
Swiss franc 1.48 1.52
U.S. dollar 0.91 0.88
Japanese yen 108.43 94.93
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 of both
years expressed in rand. The average euro/rand exchange rate prevailing
during the six months ended 30 September 2001 was 7.2512; this compares with
a rate of 6.3647 during the prior year.
Sept 2001 Sept 2000
Rand m Rand m
Sales 13 313 10 623 + 25%
Operating profit 1 835 2 030 - 10%
Attributable profit
- parent and subsidiaries 1 196 1 445 - 17%
- share of associated companies 1 885 1 502 + 25%
- the Group 3 082 2 947 + 5%
Richemont Securities AG Depositary Receipts are issued subject to the terms
of the Deposit Agreement dated 25 August 1988 as amended on 18 December 1992
and 28 September 2001 and, by holding Depositary 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 Services Limited.
