Board of Directors 2

Proposal of the board of directors for the appropriation of retained earnings at 31 March 2005

	€ m
Available retained earnings
1 April 2004, after appropriation	210.8
Net transfer from reserve for own participation certificates	22.9
Net profit for the year	954.5
	1 188.2
Proposed appropriation
Dividend payable on share capital	181.6
Dividend payable on participation reserve	551.2
Balance to be carried forward	455.4
	1 188.2

The proposed dividend on the share capital will be payable to Compagnie Financière Richemont SA, Geneva.

The proposed dividend on the participation reserve amounts to an ordinary dividend of € 0.46 per participation certificate and a special dividend of € 0.50 per participation certificate. It will be payable to Richemont unitholders on 19 September 2005 in respect of coupon number 4, free of charges and with no withholding tax deduction at the banks designated as paying agents.

The Board of Directors
Luxembourg, 6 June 2005