| Thu 6 Jun 2002, 0:00 | | Richemont - Results For The Year Ended 31 March 20 |
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RICHEMONT - RESULTS FOR THE YEAR ENDED 31 MARCH 2002
RESULTS FOR THE YEAR ENDED 31 MARCH 2002
Richemont, the Swiss luxury goods group, announces its results for the year
to 31 March 2002
March 2002 March 2001
Sales Euro3 860 m Euro3 684 m +5%
Operating profit Euro482 m Euro712 m -32%
Attributable profit
- parent and subsidiaries Euro331 m Euro528 m -37%
- share of associated companies Euro495 m Euro440 m +13%
- the Group Euro826 m Euro968 m -15%
Earnings per unit -
fully diluted basis Euro1.463 Euro1.714 -15%
Dividend per unit Euro0.32 Euro0.30 +7%
The results presented above exclude the effects of goodwill amortisation and
exceptional items from both years.
- Sales for the year increased by 5 per cent to Euro3 860 million,
largely due to the inclusion for the first time of the full twelve months`
results of Jaeger-LeCoultre, IWC and A. Lange & Shne, which were acquired
in December 2000. On a like-for-like basis, sales declined by 1 per cent
from the prior year`s level.
- Underlying growth in operating expenses, excluding the effect of the
inclusion of the three watch brands for the full twelve-month period, was 9
per cent in the year.
- Operating profit fell by 32 per cent, reflecting difficult trading
conditions and the adverse impact of exchange rate movements on the gross
margin percentage together with an overall increase of 14 per cent in
operating expenses.
- The Group`s equity accounted share of the results of its investment in
British American Tobacco, increased to Euro495 million.
- Earnings per unit for the year on a fully diluted basis decreased by 15
per cent from Euro1.714 to Euro1.463.
- The proposed dividend of Euro0.32 reflects an increase of 7 per cent.
Group Chief Executive`s Review
Commenting on the results, Mr Johann Rupert, Group Chief Executive, said:
"Following the rapid growth seen over a number of years, the results for the
financial year ended 31 March 2002 are disappointing.
The luxury goods industry generally has seen a progressive slowdown in
demand since the final quarter of 2000. The United States market, having
been the principal beneficiary of the period of rapid growth between 1992
and 2000, has been the worst hit. Surprisingly, despite continuous domestic
economic deflation, the Japanese luxury goods market has continued to grow.
As the yen has weakened, consumers have cut back on overseas travel but have
continued to buy luxury goods in the domestic market. Europe, in contrast,
has remained sluggish.
For the financial year to 31 March 2002, Richemont`s sales increased by 5
per cent to Euro3 860 million. The increase in sales is due to the inclusion
for the first time of the full twelve months` results of Jaeger-LeCoultre,
IWC and A. Lange & Shne, which were acquired in December 2000. Excluding
that effect, Group sales were broadly in line with the levels seen in the
prior year. Operating profit for the year fell by 32 per cent to Euro482
million.
Although the lack of growth in sales can partly be explained by the impact
of global events, the more marked decline in operating profit is due to a
number of factors. There was growth in the underlying cost base, as the
Group opened new retail outlets and invested in developing its manufacturing
infrastructure and in enhancing the capacity of its multi-brand service
platforms. As with sales, operating expenses also increased as a consequence
of the inclusion of the three new watch businesses.
We have taken a conscious decision to develop the manufacturing,
distribution and support infrastructure of the Group to ensure that its
businesses are equipped to grow in an ever more competitive environment
where information flows, flexibility in production and responsiveness to the
needs of the market will be key drivers of growth. These developments,
together with the establishment of other centralised services, inevitably
generate costs, which the Group is absorbing at a time when sales growth has
levelled off. Provided that these and other indirect costs correlate to
sales trends, we remain convinced that this strategy will ensure the
continuing growth of Richemont`s businesses over the long-term.
Richemont is committed to maintaining the uniqueness and individuality of
each of its `Maisons`. We believe in strength through diversity. Each
`Maison` has its own distinct identity, its own `DNA`, that stems from its
heritage and culture and it is critical that each brand has the right
strategies and resources to be able to enhance that identity. To this end,
some Euro150 million has been invested over the last three years in
expanding the production facilities of the Group`s watch brands alone.
Notwithstanding our strongly held belief in the guiding principle of brand
independence, the Group is taking steps to centralise those functions which
can be best performed on a group-wide basis. The past year has therefore
seen the further integration of functions such as distribution, logistics,
regional after-sales service, intellectual property management, finance and
legal services.
As part of this continuing process, the Group is currently restructuring its
Swiss operations to bring them on to a common platform with better co-
ordinated support services. A number of companies will be merged into one
legal entity. However, management independence and brand integrity will not
be compromised and I would stress that no redundancies are planned as a
consequence of the integration process. Indeed, the Group has been building
its employee base in Switzerland, in conjunction with the increase in its
manufacturing presence, such that the Group now has some 4 800 employees
across the country.
In addition to the integration of the various Swiss entities, it is proposed
that the corporate head office of Compagnie Financiere Richemont AG, which
to date has been located in Zug, be relocated to Geneva. Geneva is home to a
number of Richemont`s businesses and the Group thus already has a
significant presence there. Shareholders will be asked to formally approve
the transfer of the registered office of the Company at the Annual General
Meeting to be held in Zug on 12 September.
In addition to its luxury goods businesses, Richemont has a 21 per cent
interest in its associate, British American Tobacco. British American
Tobacco continues to perform well, the investment contributing Euro495
million to the Group`s attributable profit for the year and providing a
strong cash flow in the form of dividends.
Having served on the Board of Compagnie Financiere Richemont AG since its
formation in 1988 and having reached the age of 75, our Chairman, Dr
Nikolaus Senn, has indicated his intention to stand down at this year`s
Annual General Meeting. Over the years he has been a loyal friend and has
brought great wisdom and experience to our deliberations. On behalf of all
shareholders and colleagues I would like to take this opportunity to thank
him for his significant contribution to the Group`s development. The Board
of Compagnie Financiere Richemont AG has asked me to take on the role of
Executive Chairman upon Dr Senn`s retirement, and I will do my best to carry
out those duties with the same degree of commitment, tact and good humour
that Dr Senn has shown over the years.
The first indicators for trading in the current year are mixed. Whereas
retail sales for April and May have increased by 4 per cent, wholesale sales
remain weak such that, overall, sales in the two month period show virtually
no growth. Whilst we would naturally hope to see a period of gradual
recovery in demand as the year progresses, any such recovery will inevitably
depend on a continued improvement in economic conditions in our principal
markets.
Like life, business is not a sprint. On the other hand, it is not a marathon
either. Rather, as the famous athlete Michael Johnson once said, it is a
series of sprints interposed with periods of intense training and
preparation.
Business Review
Sales and operating profit
The year was characterised by a difficult trading environment, reflecting
the depressed economic climate. The Group`s results were positively impacted
by the inclusion for the first time of a full twelve months` results for
Jaeger-LeCoultre, IWC and A. Lange & Sohne, which were acquired in December
2000.
March 2002 March 2001
Euro m Euro m
Sales 3 860 3 684 + 5%
Cost of sales (1 382) (1 216)
Gross margin 2 478 2 468
Net operating expenses (1 996) (1 756)
Operating profit 482 712 - 32%
Sales for the year grew by 5 per cent. On a like-for-like basis - including
the full year`s sales of the newly acquired watch brands in both periods -
sales revenues declined by 1 per cent.
The Group`s gross margin percentage declined from 67.0 per cent to 64.2 per
cent. This reflected the adverse impact of currency movements, in particular
the relative strengthening of the Swiss Franc against the Euro. In addition,
sales of the three watch brands acquired in December 2000 are predominantly
through wholesale channels, which obviously has a lower gross margin
percentage than the retail business.
Operating expenses were significantly higher, reflecting investments in the
retail distribution network, in marketing and communication and in the
support infrastructure of the Group generally. Underlying growth in
operating expenses, excluding the effect of the inclusion of the three watch
brands for the full twelve-month period, was 9 per cent in the year. The
combination of the reduction in gross margin percentage and the higher level
of operating costs resulted in a decline in operating profit of 32 per cent.
Sales by product line
March 2002 March 2001
Euro m Euro m
Jewellery 860 877 - 2%
Watches 1 794 1 653 + 9%
Gold and jewellery watches 906 834 + 9%
Other watches 888 819 + 8%
Leather goods 303 312 - 3%
Writing instruments 285 263 + 8%
Clothing and other 618 579 + 7%
3 860 3 684 + 5%
A slowdown in sales of high jewellery, being principally within Cartier,
resulted in a slight decline in jewellery sales overall. Van Cleef and
Arpels also saw a slight decline in sales.
Watch sales, including the impact of the three recently acquired brands,
grew by 9 per cent. On a like-for-like basis, including the three companies`
sales figures for the full twelve months in both periods, watch sales were
some 4 per cent below the prior year`s level. In general, sales of the more
expensive gold and jewellery watch ranges fared somewhat better than the
market for steel and steel and gold watches.
Continued growth in sales of Montblanc`s leather goods ranges offset the
effects of the general downturn in travel-related business. In terms of
writing instruments, an excellent performance by Montblanc, in part linked
to the growth of its retail network, helped contribute to growth of 8 per
cent for the Group as a whole. Whilst menswear sales were weak, the
shortfall was more than compensated by increases in sales of fragrances and
eyewear.
Sales by region
March 2002 March 2001
Euro m Euro m
Europe 1 710 1 508 + 13%
Asia 1 454 1 436 + 1%
Japan 744 722 + 3%
Asia Pacific 710 714 - 1%
Americas 696 740 - 6%
3 860 3 684 + 5%
European sales as a proportion of the Group`s total sales increased from 41
per cent to 44 per cent during the year.
Of the overall growth in European sales of 13 per cent, some 11 per cent was
attributable to the inclusion of the three newly-acquired watch brands for
the full 12-month period, the balance representing underlying growth. Jaeger-
LeCoultre, IWC and A. Lange & Shne have historically enjoyed a very strong
European sales base, although it is anticipated that this weighting will
change in years to come as their distribution and marketing in other markets
will increasingly benefit from the association with Richemont.
Sales in Japan grew marginally during the year, relatively strong growth in
domestic demand of some 12 per cent being offset by a 10 per cent weakening
of the yen against the euro. In the rest of Asia, sales were generally in
line with the prior year`s levels.
The Americas saw the biggest fall in sales, as the events of September 11
compounded the already negative economic climate. For the year overall,
sales were some 6 per cent lower, with sales in the Americas accounting for
18 per cent of the worldwide total, compared to 20 per cent in the prior
year.
Sales by distribution channel
March 2002 March 2001
Euro m Euro m
Retail sales 1 590 1 647 - 3%
Wholesale sales 2 270 2 037 + 11%
3 860 3 684 + 5%
Whilst retail sales have fallen slightly, the Group`s wholesale sales have
increased by 11 per cent during the year under review. This reflects, in
part, the weighting of the businesses of Jaeger-LeCoultre, IWC and A. Lange
& Shne towards wholesale rather than retail distribution.
The year has seen a focus on ensuring that the network of retail boutiques
serves as a true representation of the spirit of the various `Maisons`
within the Group. A significant number of new stores were opened during the
year, notably by Montblanc, and franchised outlets have grown significantly
for Montblanc, Dunhill and Lancel. Programmes of upgrading and remodelling
of the stores have also been an important feature of the year. At 31 March
2002, the Group had a network of 520 owned stores with a further 342
operated by franchise partners.
Cartier has the Group`s largest retail presence and, whilst the total number
of owned stores has not increased during the year, it has continued to
invest in the programme of remodelling its boutiques. The refurbished store
on 5th Avenue, New York embodies the concept whereby stores reflect the
character, not only of the brand, but also of the city in which they are
located. The store, originally opened in 1917, is a perfect synthesis of the
traditional and modern.
Following the success of its new look store in Paris, Van Cleef & Arpels has
also remodelled its stores, including those in Japan acquired at the end of
the previous financial year.
Montblanc also continues to develop its retail concept with 31 new company-
owned stores being opened during the year. Of these, 19 were in the United
States but pride of place goes to Montblanc`s new store in Japan, opened in
the Ginza district in September 2001. Montblanc`s retail strategy is bearing
fruit, with the `Maison` showing strong growth in all of its product areas.
For Dunhill, the new store design, which is being rolled out globally, has
proved to be a symbol for the rejuvenation of the brand. Globally, the new
look has been well received by customers, as have the new product lines
being offered. The New York store, which opened in March 2002, sees the
return of Dunhill to its rightful home in the city on 5th Avenue. It has
been widely acclaimed.
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.
March 2002 March 2001
Euro m Euro m
Operating profit 482 712
Net investment (expense) / income (46) 8
Profit before taxation 436 720
Taxation (107) (191)
Profit after taxation 329 529
Minority interests 2 (1)
Attributable profit of the
parent and its subsidiaries 331 528
Share of attributable profit
of associates: 495 440
British American Tobacco 495 473
Hanover Direct - (33)
Attributable profit of the Group 826 968
Earnings per unit - basic Euro1.479 Euro1.737
Earnings per unit - fully diluted Euro1.463 Euro1.714
The net interest expense was Euro46 million compared to net interest income
of Euro8 million in the prior year. During the prior year, the Group earned
interest for a number of months on the cash proceeds of the Vivendi sale and
the redemption of the first tranche of preference shares in BAT up until the
acquisition of the three watch brands in December 2000. A dividend of Euro18
million was also received from Vivendi prior to its sale. In the year under
review the Group has been in a net borrowing position.
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 558.3 million (2001: 557.4
million) units and the attributable profit of the Group on an adjusted basis
of Euro826 million (2001: Euro968 million) for the year. 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 (2001: 574.2 million units) and attributable profit on an
adjusted basis for the period of Euro840 million (2001: Euro984 million)
which reflects the notional additional interest of Euro14 million (2001:
Euro16 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 its associated companies increased by 13
per cent to Euro495 million. The figure in respect of the year under review
reflects only the Group`s share of the results of its 21 per cent investment
in British American Tobacco (`BAT`), whereas the prior year`s figure also
included the Group`s share of the losses incurred by Hanover Direct. The
Group no longer equity accounts its interest in Hanover Direct, having
written down its investment in the common stock of that company to zero.
In June 2000, Richemont`s effective interest in BAT was reduced from 23 per
cent to 21 per cent as a consequence of the exercise of the put option in
respect of one half of the Group`s holding of BAT preference shares. The
comparative figures in respect of the prior year therefore include a 23 per
cent interest in BAT for the first two months of the financial year and a 21
per cent interest thereafter, whereas the Group`s share of the results of
BAT for the year under review were based on a 21 per cent interest for the
full twelve month period.
BAT has a 15 per cent share of the global cigarette market. It is the second
largest international tobacco company and is the market leader outside of
the United States. It has an impressive market position in Latin America and
a robust position in all other regions. With its strong broad-based
portfolio of international, regional and local brands, BAT has the platform
for achieving its vision to establish leadership of the global tobacco
industry.
In the year to 31 December 2001, shipments of BAT`s international brand
cigarettes grew by 3 per cent but overall group volumes remained consistent
with the prior year at 807 billion cigarettes. Europe recorded good growth
of 7 per cent, predominately in the central and eastern European markets,
but this was offset by small declines in the other regions. Despite flat
sales volumes, net revenues were up by 4 per cent to GBP 12 039 million with
increases being recorded in all regions except for Asia-Pacific. In addition
to the increase in net sales revenue, the shift in brand mix resulted in the
improved operating profit and margin compared to the prior year.
BAT`s four principal global brands, Lucky Strike, Kent, Dunhill and Pall
Mall, achieved an overall growth of more than 10 per cent, with `light`
blends growing by 11 per cent. Strategically BAT continues to shift its
brand mix towards more profitable segments of the tobacco market, being the
international and premium priced brands, `lights` and the `adults under 30`
category. The effect of this has beneficially impacted operating profit and
margins.
Earnings per share on an adjusted basis, which is regarded by BAT as being
the most comparable measure of the company`s performance, increased by 9 per
cent in BAT`s financial year ended 31 December 2001 and by 10 per cent in
the quarter ended 31 March 2002.
During the year under review, dividends totalling Euro 228 million were
received by Richemont from its investment in BAT.
Consolidated cash flow statement
March 2002 March 2001
Euro m Euro m
Operating profit 482 712
Depreciation and other non-cash items 179 135
Increase in working capital (375) (270)
Net cash inflow from operating
activities 286 577
Dividends received from BAT 228 237
Returns on investments and
servicing of finance (54) 1
Taxation paid (180) (149)
Net acquisitions of property,
plant and equipment (308) (230)
Proceeds on redemption of
BAT preference shares - 741
Proceeds from disposal of other
long-term assets 14 1 191
Acquisition of subsidiary undertakings (151) (2 028)
Other acquisitions and investments (30) (103)
Net cash inflow / (outflow) before
financing activities (195) 237
Buy-back of Richemont units (52) (142)
Dividends paid (168) (134)
Other financing activities 73 (48)
Exchange rate effects (6) 3
Decrease in cash, cash equivalents and
short-term borrowings (348) (84)
Cash and cash equivalents at
beginning of year (375) (291)
Cash and cash equivalents at end
of year (723) (375)
Net cash inflow from operating activities amounted to Euro 286 million for
the year. The generally difficult trading environment and the shortfall in
sales compared to planned levels, resulted in an increase in working
capital.
The dividends received from BAT comprise 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.
In the previous financial year, 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 from this transaction totalled Euro 741 million. The disposal of
other long-term assets in the prior year included the disposal of the
Group`s interest in Vivendi, which realised proceeds of Euro 1 176 million.
Acquisition of subsidiary undertakings totalled Euro151 million for the
year, principally comprising the Group`s purchase of a further 20 per cent
interest in Van Cleef & Arpels and the acquisition of Petitjean, a Swiss
manufacturer of watch components. In the prior financial year, Richemont
completed the acquisition of Jaeger-LeCoultre, IWC and A. Lange & Sohne for
a total consideration of Euro1 982 million.
During the year the Group purchased 2 million Richemont units, at an
acquisition cost of Euro52 million to hedge obligations arising in respect
of the Group`s long-term unit-based executive compensation schemes. In the
prior year the Group bought back 5 million units at a cost of Euro 142
million.
Consolidated balance sheet
31 March 2002 31 March 2001
Euro m Euro m
Long-term assets
Property, plant and equipment 903 691
Investments in associated
Companies 638 507
Other long-term assets 470 399
2 011 1 597
Net working capital 1 956 1 438
Net operating assets 3 967 3 035
Goodwill 5 730 6 036
Net borrowings (1 456) (1 048)
Cash, cash equivalents and
short-term borrowings (723) (375)
Long-term borrowings (733) (673)
Other long-term liabilities (176) (161)
8 065 7 862
Capital employed
Unitholders` funds 7 983 7 737
Minority interests 82 125
8 065 7 862
The increase in property, plant and equipment totalling Euro 212 million
largely represents further investment in the Group`s retail network and
watch manufacturing facilities, net of the depreciation charge for the year.
The investment of Euro 638 million in associated companies represents the
Group`s share of the net tangible assets of British American Tobacco. Of the
total goodwill figure of Euro 5 730 million, Euro 2 560 million relates to
the Group`s investment in British American Tobacco. In total, the carrying
value of the Group`s investment in BAT therefore amounts to Euro 3 198
million. Other long-term assets include deferred tax assets, investments,
collection items and unit purchase scheme receivables.
The carrying value of goodwill decreased as a result of the amortisation
charge for the year, offset by goodwill arising in respect of the
acquisition of subsidiary undertakings, totalling Euro 34 million.
Net borrowings increased by Euro 408 million primarily as a result of
increased working capital requirements and the capital investment by the
Group in its retail and manufacturing infrastructure.
Changes in unitholders` funds
The table below illustrates the movement in unitholders` funds during the
year.
31 March 2002 31 March 2001
Euro m Euro m
Profit attributable to unitholders
on an adjusted basis 826 968
Goodwill amortisation and
impairment charge (380) (384)
Exceptional items:
- as reported by the parent and
- subsidiary companies - 722
- as reported by associated companies (18) (42)
Profit attributable to unitholders on
a reported basis 428 1 264
Dividends declared and paid (168) (134)
Net movement in respect of buy-back
of Richemont `A` units (7) (130)
Translation and other adjustments (7) 5
Net increase in unitholders` funds 246 1 005
Unitholders` funds at the beginning
of the year 7 737 6 732
Unitholders` funds at the end of
the year 7 983 7 737
Unitholders` funds increased by Euro246 million during the year, the
attributable profit for the year being offset by the dividend declared and
certain other accounting adjustments.
At the annual meeting of shareholders held in September 2001, a dividend of
Euro30 per unit (Euro0.30 per unit on a post-split basis) was approved, a
total of Euro168 million having been paid to unitholders on 1 October 2001.
Dividend
The Board of Directors has proposed a dividend payable of Euro0.32 per unit.
This represents an increase of 7 per cent over the Euro0.30 paid to
unitholders in October 2001. The dividend will be payable on 30 September
2002.
Annual General Meeting
The Annual General Meeting of shareholders of Compagnie Financiere Richemont
AG will be held at 10.00 am in the "Grosser Saal", Artherstrasse 2-4, 6300
Zug on Thursday, 12 September 2002
Nikolaus Senn Johann Rupert
Chairman Group Chief Executive
Compagnie Financiere Richemont AG Zug, 6 June 2002
Appendix 1
Consolidated profit and loss account - on a reported basis
Notes March 2002 March 2001
Euro m Euro m
Operating profit 482 712
Goodwill amortisation 1 (182) (119)
Exceptional items 2 - 722
Profit before net investment
expense and taxation 300 1 315
Net investment income / (expense) (46) 8
Profit before taxation 254 1 323
Taxation (107) (191)
Profit after taxation 147 1 132
Minority interests 4 2
Attributable profit of the parent
and its subsidiaries 151 1 134
Share of attributable profit
of associates 277 130
Share of attributable profit on
an adjusted basis 495 440
Goodwill charge in respect
of associates (200) (268)
Share of exceptional items
reported by associate (18) (42)
Attributable profit of the Group
on a reported basis 3 428 1 264
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 428 1 264
Elimination of goodwill
charge 1 380 384
Reported by the parent and
its subsidiaries 182 119
In respect of associates 200 268
Minority interests (2) (3)
Elimination of
exceptional items 2 18 (680)
Gain on partial disposal of
BAT preference shares - (189)
Gain on disposal of Vivendi - (533)
Share of exceptional items
reported by BAT 18 42
Attributable profit of the Group on
an adjusted basis 4 826 968
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 year was Euro182
million. An additional goodwill amortisation charge of Euro200 million
arises in respect of the Group`s interest in its associated company, BAT.
The goodwill amortisation attributable to minority interests relates to Van
Cleef & Arpels.
Note 2 - Exceptional items
There are no exceptional items in the year under review.
The exceptional items appearing in the year ended 31 March 2001 comprised
the following:
2a Gain on partial disposal of BAT preference shares
The exceptional gain of Euro189 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 GBP 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 GBP 463
million or Euro741 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 the
transaction together with goodwill and costs related thereto. On a
consolidated basis there was no tax effect.
2b Gain on the sale of the investment in Vivendi
The exceptional gain represented Richemont`s gain on the disposal of its
holding of 17.5 million shares in Vivendi. The gain of Euro533 million was
calculated by reference to the proceeds less the carrying value of Vivendi
together with costs related thereto. On a consolidated basis there was no
tax effect.
Note 3 - Earnings per unit on a reported basis
March 2002 March 2001
Earnings per unit on a reported basis - basic Euro 0.767 Euro 2.269
- fully diluted Euro 0.770 Euro 2.231
Basic earnings per unit is calculated by reference to the weighted average
number of units outstanding during the year of 558.3 million units (2001:
557.4 million) and the attributable profit of the Group of Euro428 million
for the year (2001: Euro1 264 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 (2001: 574.2 million units) and attributable profit for
the year of Euro442 million (2001: Euro1 280 million) which reflects the
notional additional interest of Euro14 million (2001: Euro16 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 the preparation of this document
The results of the Group`s subsidiaries and associates, which do not report
in euros, have been translated into euros at the following average rates of
exchange. These companies` balance sheets have been translated at the
closing exchange rates set out below.
Average exchange rates against the euro Year to Year to
March 2002 March 2001
U.S. dollar 0.89 0.91
Japanese yen 110.64 100.38
Swiss franc 1.50 1.54
Pounds sterling 0.62 0.61
Closing exchange rates against
the euro 31 March 2002 31 March 2001
U.S. dollar 0.87 0.87
Japanese yen 115.43 110.44
Swiss franc 1.47 1.52
Pounds sterling 0.61 0.62
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 year ended 31 March 2002 was 8.4391; this compares with a rate of
6.6438 during the prior year."
March 2002 March 2001
Rand Rand
Sales 32 575 m 24 476 m + 33%
Operating profit 4 068 m 4 730 m - 14%
Attributable profit
- parent and subsidiaries 2 793 m 3 508 m - 20%
- share of associated companies 4 177 m 2 923 m + 43%
- the Group 6 971 m 6 431 m + 8%
Earnings per depositary receipt
- basic 1.248 1.154 + 8%
- fully diluted basis 1.235 1.139 + 8%
Date: 06/06/2002 07:30:00 AM Produced by the SENS Department
