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RCH
RCH
Richemont - Exchange Rate Applicable For Dividend Payable On Depository Receipts
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
RICHEMONT SECURITIES AG - EXCHANGE RATE APPLICABLE FOR DIVIDEND PAYABLE ON
DEPOSITORY RECEIPTS ("DRs")
The dividend payable to holders of Richemont Securities" DRs resident in the
South African Common Monetary Area (`SACMA") is derived from the dividend paid
by Richemont SA, Luxembourg and Compagnie Financiere Richemont SA, Switzerland
to holders of Richemont `A" units. The DR dividend payable to SACMA residents is
payable in Rand. The Board of Directors of the two companies have recommended a
total dividend of Euro 1.10 per unit this year. This comprises the regular
dividend of Euro 0.60 per unit, an increase of 20 per cent over the prior year,
together with a special dividend of Euro 0.50 per unit. The regular dividend
will be paid jointly by Richemont SA, Luxembourg - which will pay Euro 0.55 per
unit - and Compagnie Financiere Richemont SA ("CFR") - which will pay Euro 0.05
per unit. The dividend payable by CFR will be subject to Swiss withholding tax
of 35 per cent, resulting in a net dividend of Euro 0.0325 per unit. The special
dividend will be payable by Richemont SA, Luxembourg. No withholding tax will be
deductible in respect of the dividends payable by Richemont SA, Luxembourg.
Richemont Securities AG will operate a programme for South African tax
residents, who will generally be eligible to recover 27.5% of the 35%
withholding tax levied. Full details of the programme will be mailed to holders
of DR"s on 29 September 2006, at the time of the payment of the dividend. Last
year a number of DR Holders failed to receive this letter and may have lost
their opportunity to reclaim the withholding tax due to incorrect contact
information being supplied by their CSDPs to STRATE. We suggest that DR Holders
contact their CSDP in advance of the payment to ensure the STRATE information is
correct. Should DR holders not receive details of the withholding tax recovery
process by late October 2006 they should contact their CSDP or Computershare.
As DR"s trade in the ratio of 10 DRs to each Richemont `A" unit, the dividend
entitlement per DR in euro cents will be as follows:
Gross dividend Withholding tax Net dividend
per DR in euro at 35% in euro in euro cents
cents cents
Richemont SA 5.500 - 5.500
Compagnie
Financiere
Richemont SA 0.500 0.175 0.325
Richemont SA -
special dividend 5.000 - 5.000
Total 11.000 0.175 10.825
The exchange rate applicable for the conversion of euros to rand for payment of
the dividend is ZAR 9.3140 : euro 1. Accordingly the net dividend payable per DR
is ZAR 100.824 cents, as set out in the table below:
Gross dividend Withholding tax Net dividend
per DR in ZAR at 35% in ZAR in ZAR cents
cents cents
Richemont SA 51.227 - 51.227
Compagnie
Financiere
Richemont SA 4.657 (1.630) 3.027
Richemont SA -
special dividend 46.570 - 46.570
Total 102.454 (1.630) 100.824
Under the withholding tax recovery programme qualifying SACMA residents will be
entitled to recover the equivalent of 0.1375 euro cents per DR. The amount
recovered will be converted into ZAR and will be remitted to DR holders who are
eligible to participate in the programme once the reimbursement of the tax has
been received from the Swiss Federal Tax Authorities (`SFTA"). Your attention is
drawn to the fact that the refunds are to be paid by the SFTA in Swiss francs.
The Swiss francs received by Richemont Securities AG will be converted into rand
at the ZAR-Swiss franc exchange rate ruling at the time of receipt. Bearing in
mind the fluctuating SA Rand rate, the effective rate used to arrive at the ZAR
refund payment to DR holders will consequently differ from that indicated above.
The payment dates in respect of the dividend in respect of the South African DRs
are as follows:
Last date to trade "cum dividend" Friday, 15 Sept 2006
Trading commences "ex-dividend" from the Monday, 18 Sept 2006
commencement of business on
DR dividend record date Friday, 22 Sept 2006
DR dividend payment date Friday, 29 Sept 2006
DR Holders may not dematerialise or rematerialise their holding of Richemont DRs
between Monday, 18 September 2006 and Friday,
22 September 2006, both days inclusive.
Richemont Securities AG DRs are issued subject to the terms of the Deposit
Agreement dated 25 August 1988, as amended and, by holding DRs, 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 Investor Services 2004 (Pty) Limited.
Richemont Securities AG may appoint a depository agent or other parties to
assist in the administration of the depository receipt programme and may provide
to such agents such information as it deems to be appropriate, including
information relating to the identity of holders of depository receipts.
8 September 2006
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 08/09/2006 11:26:46 AM Produced by the JSE SENS Department
