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Richemont appoints Dr Bérangère Ruchat as Chief Sustainability Officer

Richemont is pleased to announce the appointment of Dr Bérangère Ruchat as Chief Sustainability Officer, reporting to Burkhart Grund, Chief Finance Officer, effective 1 February 2022.
Building upon Richemont’s top-ranking achievements in ESG reporting and commitment to Science Based Targets, Dr Bérangère Ruchat will bring her deep sustainability expertise and collaborative track record to further develop the Group’s vision and step up its sustainability ambition.
Dr Ruchat joins from the Firmenich Group, Switzerland, where she was Chief Sustainability Officer and more recently, Senior Vice President Sustainability. During her 12-year tenure, Dr Ruchat established unique partnerships, drove Firmenich sustainability strategy and led the group ESG reporting.
Beforehand, she was the Director of Partnerships at Global Alliance for Improved Nutrition (GAIN) from 2004, having led the Partners in Action Program at the United Nations System Staff College, which she joined in 2000.
Dr Ruchat was acknowledged by the World Business Council for Sustainable Development Leading Women Awards for her work in advancing the United Nations Sustainable Development Goals (UN SDGs) in 2016. She also received the Head of Sustainability of the Year award by Ethical Corporation in 2015.
Cartier Women's Initiative releases its Impact Report on its 15th anniversary

The Cartier Women's Initiative has helped women impact entrepreneurs to reach their full potential by shining a light on their achievements and providing the necessary financial, social and human capital support to grow their businesses and build their leadership skills.
The programme is open to women-run and women-owned businesses from any country and sector that aim to have a strong and sustainable positive impact on society as defined by the United Nations Sustainable Development Goals.
Fifteen years on, the Cartier Women's Initiative has supported 262 women impact entrepreneurs hailing from 62 countries and has awarded a total of USD6 440 000 to support their businesses.
In the spirit of continuous improvement and to mark the 15th anniversary of the programme, the Cartier Women's Initiative has placed Impact at the heart of its 2022 edition. With the launch of the Impact Report, which put the light on the powerful ripples of positive changes initiated by these women entrepreneurs, Cartier Women's Initiative aims to expand opportunities to more women impact entrepreneurs worldwide.
On this occasion, for the very first time, the Cartier Women's Initiative has unveiled 9 impact awardees.
The Impact Awards cover three categories: Improving Lives, Preserving the Planet, and Creating Opportunities, based on the United Nations Sustainable Development goals.
Further sales growth acceleration in the third quarter ended 31 December 2021
Highlights
Compared to the third quarter ended 31 December 2020:
- Strong sales, up by 32% at constant exchange rates and by 35% at actual exchange rates
- Double-digit sales growth across all regions, channels and business areas
- Strongest performance from the Americas and Europe, rebalancing regional sales mix
- Retail and online retail, a combined 78% of Group sales, driving growth
- Excellent performance from all three business areas:- Jewellery Maisons, with sales growth of 38% at constant exchange rates (+41% at actual exchange rates) - Fashion & Accessories Maisons, with sales growth of 37% at constant exchange rates (+40% at actual exchange rates), sustained by Chloé, Montblanc and Peter Millar - Specialist Watchmakers, with sales growth of 25% at constant exchange rates (+29% at actual exchange rates)
Compared to the third quarter ended 31 December 2019:
- Continued sequential quarterly growth acceleration, with third quarter sales up by 38% at constant exchange rates and 36% at actual exchange rates
- Pre-pandemic levels substantially exceeded, with sales up double digits across all regions and business areas, as well as online and offline retail channels
- Outstanding performance of the Americas, Asia Pacific and Middle East and Africa; Europe and Japan resuming growth, up double digits
- Performance led by the Jewellery Maisons (+57% and +55% at constant and actual rates respectively) with other business areas growing at or close to 20%
| October-December | 2021 | 2020 | 2019 | % change 2021 vs 2020 | % change 2021 vs 2019 | ||
| €m | €m | €m | constant rates | actual rates | constant rates | actual rates | |
|
By region |
|||||||
| Europe | 1 410 | 982 | 1 263 | +42% | +44% | +12% | +12% |
| Asia Pacific | 2 128 | 1 729 | 1 429 | +18% | +23% | +47% | +49% |
| Americas | 1 333 | 841 | 874 | +55% | +59% | +59% | +53% |
| Japan | 389 | 335 | 341 | +22% | +16% | +23% | +14% |
| Middle East and Africa | 398 | 299 | 249 | +30% | +33% | +65% | +60% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 3 400 | 2 288 | 2 212 | +45% | +49% | +56% | +54% |
| Online retail | 1 025 | 841 | 747 | +19% | +22% | +40% | +37% |
| Wholesale & royalty income | 1 233 | 1 057 | 1 197 | +14% | +17% | +4% | +3% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 3 343 | 2 366 | 2 162 | +38% | +41% | +57% | +55% |
| Specialist Watchmakers | 977 | 758 | 818 | +25% | +29% | +20% | +19% |
| Online Distributors | 785 | 668 | 670 | +15% | +18% | +19% | +17% |
| Other | 610 | 436 | 522 | +37% | +40% | +19% | +17% |
| Inter-segment eliminations | (57) | (42) | (16) | ||||
| Total | 5 658 | 4 186 | 4 156 | +32% | +35% | +38% | +36% |
|
|
|||||||
Review of trading in the three-month period ended 31 December 2021 versus the prior-year period, at constant exchange rates
Sales rose by 32% versus the prior year period driven by double-digit increases in all regions, channels and business areas, in a relatively supportive economic environment.
The Americas led the growth with sales up by 55%, followed by Europe and Middle East and Africa, where sales grew by 42% and 30%, respectively. Japan and Asia Pacific saw sales increase by 22% and 18%, respectively, with China consolidating at a high level of +7%. Regional sales mix continued to be further rebalanced with Asia Pacific accounting for 38% of Group sales, followed by Europe and the Americas, at 25% and 23% of Group sales, respectively. Japan and Middle East and Africa each contributed 7% of Group sales.
Retail generated the strongest channel performance, with sales up by 45%, followed by online retail sales up by 19% and wholesale sales up by 14%. Direct sales to consumers have further strengthened to reach 78% of Group sales compared to 75% in the prior year period.
The Jewellery Maisons were the strongest performing business area, with sales increasing by 38%, immediately followed by the Group's Other business area (primarily our Fashion & Accessories Maisons) with sales up by 37%. The Specialist Watchmakers also performed markedly well with sales increasing by 25% while the Online Distributors posted 15% sales growth.
Review of trading in the three-month period ended 31 December 2021 versus the three-month period ended 31 December 2019, at constant exchange rates
On a two-year basis, sales exceeded pre-Covid levels across all regions, channels and business areas.
The Americas, supported by strong local demand, saw sales rise by 59%, followed by Asia Pacific with a 47% sales increase. This commendable performance was driven by double-digit growth in most locations, notably in Australia, China and South Korea, notwithstanding renewed temporary public health protection measures. Europe, with sales up by 12%, reflected solid domestic sales across the region that more than compensated for lower tourism spend compared to two years ago, notwithstanding clients from the Middle East and the USA progressively returning to Europe, notably France. The strongest growth (+65%) was generated in the Middle East and Africa, which benefited from increased domestic demand and higher tourist spend driven by Expo 2020 Dubai and the year-end holiday season. In Japan, the surge in local demand led to a 23% sales increase after two declining quarters.
All channels delivered growth, led by the offline and online retail channels that recorded sales growth of 56% and 40%, respectively. This outstanding performance was driven by double-digit growth across all business areas for retail, and increases of double to triple digits for the online retail channel, depending on the business area. Retail sales were particularly robust in China, Dubai, South Korea and the USA. Sales in the wholesale channel were 4% higher than in the comparative period in 2019, sustained by significant sales in China and the USA.
The stellar 57% sales progression at the Jewellery Maisons, comprised of Buccellati, Cartier and Van Cleef & Arpels, was broad-based across product lines and price points. Sales grew double digits in all regions and across all channels. Reaping the benefits of prior investments and client-centric activities, the Specialist Watchmakers saw sales increase by 20%, with double-digit growth in most regions and watch Maisons. At the Online Distributors, sales rose by 19% reflecting strong trading at YOOX and THE OUTNET as well as the solid performance of Watchfinder. The Group's Other business area, composed primarily of the Group's Fashion & Accessories Maisons, posted a 19% increase in sales. Excluding Delvaux for comparison purposes, growth reached 11%. This noteworthy sales performance was driven by Alaïa, Chloé and Peter Millar.
Trading in the nine-month period ended 31 December 2021
Sales over the nine-month period to December increased by 50% at constant exchange rates and by 51% at actual exchange rates compared to the prior year period, a further improvement over the strong performance in the first six months of the financial year. A quarter-by-quarter sales overview is presented in Appendix 1.
The Group's net cash position at 31 December 2021 amounted to € 4.9 billion (2020: € 2.9 billion).
Corporate calendar
The Group's results for the financial year ending 31 March 2022 will be announced on Friday, 20 May 2022.
The Group's corporate calendar is available on https://www.richemont.com/en/home/investors/corporate-calendar/
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont's ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, YOOX, THE OUTNET and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont's primary listing, and are included in the Swiss Market Index (SMI) of leading stocks. Richemont South African Depository Receipts are listed on the Johannesburg Stock Exchange, Richemont's secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 3003; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 3507; pressoffice@cfrinfo.net; richemont@teneo.com
Disclaimer
The financial information contained in this announcement is unaudited.
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. Richemont's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumer traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers' desire to travel to our retail stores.
As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. 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.
© Richemont 2022
Appendix 1
| 2021 | 2020 | 2019 | % change 2021 vs 2020 | % change 2021 vs 2019 | |||
| Q1 (April-June) | €m | €m | €m | constant rates | actual rates | constant rates | actual rates |
|
By region |
|||||||
| Europe | 905 | 436 | 1 072 | +108% | +108% | -15% | -16% |
| Asia Pacific | 1 933 | 1 013 | 1 423 | +95% | +91% | +40% | +36% |
| Americas | 955 | 277 | 698 | +276% | +245% | +47% | +37% |
| Japan | 240 | 112 | 298 | +138% | +114% | -14% | -19% |
| Middle East and Africa | 364 | 155 | 249 | +154% | +135% | +55% | +46% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 2 421 | 1 052 | 1 851 | +138% | +130% | +35% | +31% |
| Online retail | 809 | 506 | 648 | +67% | +60% | +29% | +25% |
| Wholesale & royalty income | 1 167 | 435 | 1 241 | +178% | +168% | -3% | -6% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 2 515 | 1 083 | 1 827 | +142% | +132% | +43% | +38% |
| Specialist Watchmakers | 849 | 359 | 823 | +143% | +136% | +6% | +3% |
| Online Distributors | 637 | 356 | 612 | +86% | +79% | +8% | +4% |
| Other | 440 | 204 | 493 | +124% | +116% | -7% | -11% |
| Inter-segment eliminations | (44) | (9) | (15) | ||||
| Total | 4 397 | 1 993 | 3 740 | +129% | +121% | +22% | +18% |
|
|
|||||||
| 2021 | 2020 | 2019 | % change 2021 vs 2020 | % change 2021 vs 2019 | |||
| Q2 (July-September) | €m | €m | €m | constant rates | actual rates | constant rates | actual rates |
|
By region |
|||||||
| Europe | 1 104 | 798 | 1 149 | +38% | +38% | -4% | -4% |
| Asia Pacific | 1 856 | 1 543 | 1 306 | +17% | +20% | +43% | +42% |
| Americas | 971 | 623 | 649 | +58% | +56% | +59% | +50% |
| Japan | 286 | 253 | 349 | +20% | +13% | -11% | -18% |
| Middle East and Africa | 293 | 268 | 204 | +10% | +9% | +49% | +44% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 2 555 | 1 878 | 1 957 | +35% | +36% | +33% | +31% |
| Online retail | 824 | 702 | 612 | +17% | +17% | +37% | +35% |
| Wholesale & royalty income | 1 131 | 905 | 1 088 | +25% | +25% | +7% | +4% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 2 582 | 1 978 | 1 909 | +30% | +31% | +39% | +35% |
| Specialist Watchmakers | 830 | 607 | 744 | +35% | +37% | +13% | +12% |
| Online Distributors | 641 | 578 | 567 | +11% | +11% | +15% | +13% |
| Other | 495 | 341 | 448 | +45% | +45% | +14% | +10% |
| Inter-segment eliminations | (38) | (19) | (11) | ||||
| Total | 4 510 | 3 485 | 3 657 | +29% | +29% | +26% | +23% |
|
|
|||||||
| 2021 | 2020 | 2019 | % change 2021 vs 2020 | % change 2021 vs 2019 | |||
| Q3 (October-December) | €m | €m | €m | constant rates | actual rates | constant rates | actual rates |
|
By region |
|||||||
| Europe | 1 410 | 982 | 1 263 | +42% | +44% | +12% | +12% |
| Asia Pacific | 2 128 | 1 729 | 1 429 | +18% | +23% | +47% | +49% |
| Americas | 1 333 | 841 | 874 | +55% | +59% | +59% | +53% |
| Japan | 389 | 335 | 341 | +22% | +16% | +23% | +14% |
| Middle East and Africa | 398 | 299 | 249 | +30% | +33% | +65% | +60% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 3 400 | 2 288 | 2 212 | +45% | +49% | +56% | +54% |
| Online retail | 1 025 | 841 | 747 | +19% | +22% | +40% | +37% |
| Wholesale & royalty income | 1 233 | 1 057 | 1 197 | +14% | +17% | +4% | +3% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 3 343 | 2 366 | 2 162 | +38% | +41% | +57% | +55% |
| Specialist Watchmakers | 977 | 758 | 818 | +25% | +29% | +20% | +79% |
| Online Distributors | 785 | 668 | 670 | +15% | +18% | +19% | +17% |
| Other | 610 | 436 | 522 | +37% | +40% | +19% | +17% |
| Inter-segment eliminations | (57) | (42) | (16) | ||||
| Total | 5 658 | 4 186 | 4 156 | +32% | +35% | +38% | +36% |
|
|
|||||||
| 2021 | 2020 | 2019 | % change 2021 vs 2020 | % change 2021 vs 2019 | |||
| H1 (April-September) | €m | €m | €m | constant rates | actual rates | constant rates | actual rates |
|
By region |
|||||||
| Europe | 2 009 | 1 234 | 2 221 | +62% | +63% | -9% | -10% |
| Asia Pacific | 3 789 | 2 556 | 2 729 | +47% | +48% | +41% | +39% |
| Americas | 1 926 | 900 | 1 347 | +123% | +114% | +53% | +43% |
| Japan | 526 | 365 | 647 | +56% | +44% | -12% | -19% |
| Middle East and Africa | 657 | 423 | 453 | +62% | +55% | +53% | +45% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 4 976 | 2 930 | 3 808 | +71% | +70% | +34% | +31% |
| Online retail | 1 633 | 1 208 | 1 260 | +38% | +35% | +33% | +30% |
| Wholesale & royalty income | 2 298 | 1 340 | 2 329 | +74% | +71% | +2% | -1% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 5 097 | 3 061 | 3 376 | +69% | +67% | +41% | +36% |
| Specialist Watchmakers | 1 679 | 966 | 1 567 | +75% | +74% | +10% | +7% |
| Online Distributors | 1 278 | 934 | 1 179 | +39% | +37% | +11% | +8% |
| Other | 935 | 545 | 941 | +74% | +72% | +3% | -1% |
| Inter-segment eliminations | (82) | (28) | (26) | ||||
| Total | 8 907 | 5 478 | 7 397 | +65% | +63% | +24% | +20% |
|
|
|||||||
| 2021 | 2020 | 2019 | % change 2021 vs 2020 | % change 2021 vs 2019 | |||
| YTD (April-December) | €m | €m | €m | constant rates | actual rates | constant rates | actual rates |
|
By region |
|||||||
| Europe | 3 419 | 2 216 | 3 484 | +53% | +54% | -2% | -2% |
| Asia Pacific | 5 917 | 4 285 | 4 158 | +35% | +38% | +43% | +42% |
| Americas | 3 259 | 1 741 | 2 221 | +90% | +87% | +55% | +47% |
| Japan | 915 | 700 | 988 | +39% | +31% | 0% | -7% |
| Middle East and Africa | 1 055 | 722 | 702 | +48% | +46% | +57% | +50% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 8 376 | 5 218 | 6 020 | +60% | +61% | +42% | +39% |
| Online retail | 2 658 | 2 049 | 2 007 | +30% | +30% | +35% | +32% |
| Wholesale & royalty income | 3 531 | 2 397 | 3 526 | +47% | +47% | +2% | 0% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 8 440 | 5 427 | 5 898 | +55% | +56% | +47% | +43% |
| Specialist Watchmakers | 2 656 | 1 724 | 2 385 | +53% | +54% | +13% | +11% |
| Online Distributors | 2 063 | 1 602 | 1 849 | +29% | +29% | +14% | +12% |
| Other | 1 545 | 981 | 1 463 | +57% | +57% | +8% | +6% |
| Inter-segment eliminations | (139) | (70) | (42) | ||||
| Total | 14 565 | 9 664 | 11 533 | +50% | +51% | +29% | +26% |
|
|
|||||||
Appendix 2: Foreign exchange rates
| April-December | April-December | |
| Average exchange rates against the euro | 2021 | 2020 |
| United States dollar | 1.18 | 1.15 |
| Japanese yen | 131 | 122 |
| Swiss franc | 1.08 | 1.07 |
| Renminbi | 7.57 | 7.93 |
Actual exchange rates for the period are calculated using the average daily closing rates against the euro.
In terms of sales at constant exchange rates, average exchange rates for the year ended 31 March 2021 are used to convert local currency sales into euros for all presented periods. Exchange rate translation effects are thereby eliminated from the reported sales performance.
Richemont awarded A rating by CDP for tackling climate change

Richemont has been recognised for its leadership in corporate sustainability by global environmental non-profit CDP, securing a place on its ‘A List’ for tackling climate change.
Matthew Kilgarriff, Group CSR Director, commented: “We are very proud to have been upgraded from A- to A by CDP, an organisation widely recognised as the gold standard of corporate environmental transparency. This is a tribute to all my colleagues at Richemont for engaging effectively to enable progress towards our Sciences Based Targets (SBT), which were validated by the Science-Based Target initiative in September, to reduce greenhouse gas emissions in line with the 2015 Paris Agreement. We believe that our SBTs provide us with a clearly defined pathway to help us reduce our impact on climate change, while future-proofing our business for greener growth”.
A detailed and independent methodology is used by CDP to assess companies, allocating a score of A to D - based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, including setting meaningful targets.
The full list of companies that made this year’s CDP A List is available here: https://www.cdp.net/en/companies/companies-scores
Richemont’s 2021 Interim Report now available online
Richemont announces the publication of its interim report and accounts for the six months ended 30 September 2021. The report is available for download from the Richemont website at: www.richemont.com/en/home/investors/results-reports-presentations
The interim report reflects the information contained in the Richemont results announcement issued on 12 November 2021 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
In accordance with stock exchange regulations in Switzerland and South Africa, Richemont no longer prints its interim report.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, YOOX, THE OUTNET and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont and Farfetch in advanced talks to further their partnership
Richemont is pleased to announce that further progress has been made towards creating a neutral, industry-wide platform, built on the latest omnichannel retail technologies, to support the digitisation of the luxury industry.
In this context, Richemont is in advanced discussions with Farfetch with a view to enhancing the partnership it established last year. The scope of the current discussions includes:
(i) Farfetch investing directly in YOOX NET-A-PORTER as a minority shareholder, with other investors to be invited to participate alongside;
(ii) YOOX NET-A-PORTER leveraging Farfetch Platform Solutions to support its ongoing transition to a hybrid 1P/3P business model;
(iii) Richemont Maisons leveraging Farfetch technology to accelerate their Luxury New Retail developments; and
(iv) Richemont Maisons joining the Farfetch marketplace.
Other industry players and investors have already indicated their interest in investing in YOOX NET-A-PORTER alongside Richemont and Farfetch. The ultimate objective is for YOOX NET-A-PORTER to be a neutral platform, with no controlling shareholders.
Richemont continues to work with Farfetch towards definitive agreements and will provide an update in due course, if and when appropriate. There can be no certainty that the discussions will lead to definitive agreements, nor as to the timing or terms of any transaction. Any transaction would be subject to the receipt of clearances from relevant anti-trust authorities.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Women’s Pavilion: The compelling exhibition “New Perspectives” created by Expo 2020 Dubai in collaboration with Cartier

©Victor Picon / Victor & Simon
When Women Thrive, Humanity Thrives.
Created by Expo 2020 Dubai in collaboration with Cartier, the Women’s Pavilion takes visitors on a compelling and immersive journey from start to finish.
Under the exhibition titled «New Perspectives», the Women’s Pavilion invites visitors to celebrate and recognize the central role women have played throughout history, leading up to the present day.
By showcasing these contributions, as well as the challenges that women around the world still face, the Pavilion seeks to highlight an important principle: when women thrive, humanity thrives.
Chloé has achieved B Corp certification

Richemont is delighted to announce that Chloé has achieved B Corp certification.
B Corp is one of the most demanding certifications that evaluates brands’ social and environmental impact, with over 300 questions on governance, workers, communities and impact on the environment. It is the result of a collective work at Chloé that started in June 2020, in line with their mission, Women Forward. For a Fairer Future.
This certification offers Chloé a powerful framework to accelerate and guide its transformation. It also demonstrates the brand’s progress and reinforces its commitment to improve and challenge itself to continuously do better, using business as a force for good to benefit all people, communities and the planet.
“It is our strong belief that we need to take full accountability for the impact we have on people and planet, injecting purpose across everything we do, transforming how we do business and actively participating to build a better world. B Corp offers us a powerful framework to accelerate and guide this transformation. We are proud of this achievement and I am thankful to the many people in our company that worked hard to make it possible during more than 18 months. By becoming B Corp today, we reinforce our commitment to continuously challenging ourselves to use our brand and our business as a force for good” said Chloé CEO, Riccardo Bellini.
Richemont among the World's Best Employers 2021

At Richemont, we are pleased to be ranked #113 out of #750 companies in Forbes ranking of the world's best employers, and thank our colleagues for their vote of confidence.
Forbes has partnered with Statista to survey 150 000 employees from 58 different countries worldwide to determine the ranking. The evaluation was based on respondents' willingness to recommend employer brands and their satisfaction with various work-related statements.
OTB joins Cartier on the AURA Blockchain Consortium

Cartier, part of Richemont and founding member of the #AuraBlockchain Consortium with LVMH and Prada Group, is delighted to welcome the international fashion group OTB as a new founding member.
The founding members of the AURA Blockchain Consortium commented: “The Aura Blockchain Consortium warmly welcomes OTB as our fourth founding member. The Group’s strategy which is geared towards young generations and its courageous choices, combined with its tech expertise, are at the heart of this union. We strongly believe that OTB’s contribution will be of great value for the evolution of our platform and the standards we aim to set for the entire luxury industry”.
Cartier, delegated by Richemont, and Kering launch the ‘Watch and Jewellery Initiative 2030’ in partnership with the Responsible Jewellery Council

Cartier, delegated by Richemont, and Kering launch the Watch and Jewellery Initiative 2030 in partnership with the Responsible Jewellery Council (RJC). The initiative welcomes all watch and jewellery brands with a national and international footprint willing to commit to a set of ambitious and common objectives in three areas: building climate resilience, preserving resources and fostering inclusiveness.
“As the watch and jewellery sector relies on the earth’s precious resources and people’s know-how around the world within its value chains, the imperative to act together in creating a more positive impact has become ever clearer. We are thrilled to join efforts towards a more sustainable industry together with Kering, in partnership with the Responsible Jewellery Council, and to invite other industry actors to join this initiative. More than ever, we remain committed to share our common vision of a future where all Maisons, their suppliers and business partners are empowered to collaborate on projects that deliver positive impact on the planet and its people”, said Cyrille Vigneron, President and CEO of Cartier.
The Watch and Jewellery Initiative 2030 stands at the crossroads of environmental considerations and the ambition to strengthen positive impacts for people all along the value chain, driven by a common conviction that the global Sustainable Development Goals (SDGs) and aspirations for a sustainable industry can only be achieved through collaborative initiatives.
Love Brings Love: Over 40 Maisons and designers participated in the Tribute to Alber Elbaz

Yesterday, the last night of the Paris Fashion Week closed with a very special show entitled Love brings Love. This event paid tribute to Alber's creative vision and his unconditional Love for the fashion family, in a collaborative runway show that gathered 45 houses and designers.
The show's concept was inspired by a 1945 Parisian exhibition which brought together over sixty French couturiers as a beautiful expression of creativity, prestige, and solidarity in the wake of World War II. Fascinated by this uplifting story, Alber had long dreamt of uniting his wider fashion family for a new, modern iteration of its own. This year, with the help of his colleagues, peers and friends, AZ Factory has brought his biggest dream to life.
The event was livestreamed on AZFactory.com, Youtube and Instagram, and can be watched here:
NET-A-PORTER, MR PORTER and THE OUTNET bring luxury resale service powered by Reflaunt

NET-A-PORTER, MR PORTER and THE OUTNET revealed today a landmark partnership between YOOX NET-A-PORTER and the leading resale technology provider, Reflaunt.
The collaboration will draw on NET-A-PORTER, MR PORTER, and THE OUTNET's unparalleled and personalised customer service heritage. It will enable shoppers to contribute to a more circular fashion system by reselling and extending the lives of their designer items. The resale service will launch first for NET-A-PORTER in Autumn 2021, followed by MR PORTER and THE OUTNET in early 2022.
"More than ever, our customers are looking for fashion that is not only designed to last but for ways in which it can go on to be re-loved. We are thrilled to partner with Reflaunt and offer our customers an effortless service that allows them to resell their designer pieces with ease. We see re-commerce as a true enabler to tap into greater product longevity by extending the lives of pre-loved purchases. This collaboration represents an exciting step in our long-term mission to drive the change at YOOX NET-A-PORTER to a more circular fashion ecosystem." - Alison Loehnis, President, Luxury & Fashion, NET-A-PORTER, MR PORTER and THE OUTNET.
The new resale offer builds on more than 20 years of exceptional global customer service and innovation at YOOX NET-A-PORTER, advancing its commitment to 'Unlock re-commerce' by bringing innovative and memorable re-commerce experiences to customers across its four online stores by 2025.
10 Richemont Maisons exhibit at Watches and Wonders Sanya from 1 October to 31 December 2021

From 1 October to 31 December 2021, 14 brands will exhibit in the Sanya International Duty-Free Shopping Complex, including 10 Richemont Maisons: A. Lange & Söhne, Baume & Mercier, Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Montblanc, Panerai, Piaget, Roger Dubuis and Vacheron Constantin.
Watches and Wonders Sanya brings a passion for watchmaking excellence to the Chinese seaside resort, opening its doors during the Golden Week. Visitors will have the opportunity of appreciating the different facets of watchmaking art through watchmakers’ demonstrations, discovering the latest trends, diving into the history of emblematic watches, and understanding watch complications. In addition, the participating Maisons will highlight their new collections and pay tribute to their watchmaking heritage through many other entertaining activities.
watchesandwonders.com
Download the press release in:
English, French, Simplified Chinese, Traditional Chinese
YOOX NET-A-PORTER's inaugurates its cutting-edge distribution centre with the Italian government delegation

To celebrate the inauguration of its new cutting-edge 54 000 sqm distribution centre in Landriano, near Milan, YOOX-NET-A-PORTER has welcomed a delegation from the Italian Government for an exclusive tour of the facility. The delegation comprised Maria Stella Gelmini, the Italian Government's Minister of Regional Affairs and Autonomies, Fabiana Dadone, the Italian Government's Minister for Youth Policy, and Alessandra Todde, the Italian Government's vice president Minister of Economic Development.
"We are delighted to have unveiled our cutting-edge distribution centre in Landriano in the presence of the Ministers and Vice Minister. This new global hub for NET-A-PORTER and MR PORTER reflects our commitment to innovation and long-term growth, and to Italy in particular, the country where YOOX was founded 21 years ago. We are proud to continue investing in local talent and to constantly improve the shopping experience for our more than 4.5 million customers across 180 countries worldwide." - Geoffroy Lefebvre, CEO of YOOX NET-A-PORTER.
The logistics hub represents one of YOOX NET-A-PORTER's most important investments of the last 20 years in terms of logistics and operations in Italy, amounting to a total of 47 million euros: an operation that allows the Company to double the capacity of the inventory of NET-A-PORTER and MR PORTER. Leveraging a fully interconnected logistics network built around central hubs and regional distribution centres, the omni-stock model gives NET-A-PORTER and MR PORTER’ customers visibility of and access to stock from anywhere in the world.
As well as serving as a global distribution centre, the Landriano site also encompasses a Digital Production Hub, with 6 000 sqm dedicated to creative innovation and the creation of visual content for luxury brands sold by NET-A-PORTER and MR PORTER.
Richemont sponsors new Masters programme in Sustainable Management & Technology in partnership with The Enterprise for Society Center

32 students from 16 countries will join the newly created two-year programme focused on sustainability, technology and management by Swiss academic institutions EPFL, HEC-UNIL and IMD.
The course’s goal is to equip future leaders with the knowledge and skills enabling them to contribute to the transition toward a more resilient, environmentally responsible and inclusive economy while harnessing the power of technology.
Chairman’s address at the 2021 Richemont Annual General Meeting
Compagnie Financière Richemont SA
Virtual Annual General Meeting
8 September 2021
Address by Johann Rupert, Chairman of the Board
Ladies and Gentlemen, Dear Shareholders,
Before proceeding to the agenda of our 33rd annual general meeting, I would like to say how much I was looking forward to welcoming you in person in 2021. Unfortunately, with the current restrictions on people’s movement and ability to gather, like many other companies, we are holding this annual general meeting again without the presence of shareholders.
The year under review was truly a stress test for our business model. As previously reported, Richemont experienced a negative cash flow of over € 400 million in April 2020. Management immediately implemented strict cost control measures. In addition, your Board of Directors proposed a cut in the dividend for the year whilst issuing a novel three-year Warrant Programme. Our hope was that scientists would find a vaccine during the period. As many countries are now experiencing “post-vaccination” growth, the value of the Warrants has more than compensated for the cut in the dividend.
I would also like to thank all my colleagues at Richemont, both on my behalf and on behalf of the Directors of Compagnie Financière Richemont SA, for the solid performance they have delivered with remarkable agility, courage, solidarity and discipline in exceptional circumstances.
Thanks to their dedication, our Maisons and businesses further progressed on their journey towards ‘Luxury New Retail’, and delivered a good set of results. Last financial year saw a sharp decline in the first half of the year as the health crisis spread across the globe, but sales recovered throughout the year and exceeded € 13.1 billion, led by our Jewellery Maisons, primarily Cartier and Van Cleef and Arpels, online retail and Asia Pacific. Operating margin improved to 11.2% and profit for the year increased by 38% to close to € 1.3 billion, impacted positively by net finance income. Our net cash position rose significantly to € 3.43 billion, even after a € 253 million investment in convertible notes issued by Farfetch. In the start of our current financial year, the business continued to perform strongly, with sales up by 129% at constant exchange rates and 121% at actual exchange rates for the three-month period ended 30 June 2021. Sales exceeded pre-Covid levels, driven by a robust performance by the Jewellery Maisons and Specialist Watchmakers, with the Americas generating the strongest regional performance.
Shareholders will recall our stated ambition to turn as many as possible of our fixed costs into variable costs. Like our competitors, we are exposed to retail leases. Those amount to a yearly commitment of close to € 1 billion. In addition, smaller Maisons find it difficult to absorb central costs to compete with very big brands. To make matters worse, big competitors would use their leverage with retail landlords to squeeze out their smaller competitors.
We therefore deliberately invested in Online Channels as another route to market. The Covid pandemic accelerated online shopping globally. It also changed the lessor/lessee power dynamic. So, after years of absorbing heavy investments, we are now finally seeing other parties willing and eager to share the evolving platforms. We should be able to share more news on this matter later in the year.
Whilst we remain alert to the potential impact of the ongoing nature of the pandemic and entirely mobilised to safeguard the health and safety of our colleagues, clients and partners, this performance indicates that we are seeing the benefits of our transformation. The Jewellery Maisons’ continued strength underlines the enduring appeal of Cartier, Van Cleef & Arpels and Buccellati, while our Specialist Watchmakers division has regained a healthy state. With the re-platforming of NET-A-PORTER now complete, we have improved the customer journey and further evolved the Online Distributors’ business model. There is renewed creative energy in our Fashion & Accessories Maisons, that recently welcomed Delvaux, the renowned Belgian luxury leather goods Maison.
Before turning to the evolution of our governance, allow me to pay tribute to Alber Elbaz, who very tragically passed away last April, shortly after the successful launch of AZ Factory, his inclusive dream of ‘smart fashion that cares’. Our dear friend and colleague will be forever remembered for his incredible sensitivity, wit and talent.
At this shareholders’ meeting, you are asked to approve a number of changes to the Board of Directors to streamline our corporate governance structure and strengthen the Board’s competence as we embark on the next stage of our development. Indeed, our corporate governance structures have continued to evolve to meet the changing demands of our operating environment most efficiently, in line with best practice. The Maisons have been given increased entrepreneurial freedom to focus on their leadership responsibilities and durably create value, whereas the Board and the Senior Executive Committee will focus on strategic guidance, capital allocation and the provision of central and regional services. Reflecting this ambition, Cyrille Vigneron, President & Chief Executive of Cartier and Nicolas Bos, President & Chief Executive of Van Cleef & Arpels have stepped down from the Board of Directors and from the Senior Executive Committee. They will continue to report to me. Only Jérôme Lambert, Chief Executive Officer, and Burkhart Grund, Chief Finance Officer, have sought re-election to the Board of Directors and remain, with me, on the Senior Executive Committee; the other senior executives, Philippe Fortunato, CEO of Fashion & Accessories Maisons, Emmanuel Perrin, Head of Specialist Watchmakers Distribution, and Frank Vivier, Chief Transformation Officer, have stepped down from that committee. I am truly grateful for their collective engagement and valued contributions to the Senior Executive Committee. Two long-standing Non-executive Directors, Alan Quasha and Gary Saage, have also announced their retirement from the Board of Directors and I wish to thank them for the considerable contributions they have made to the Group over many years.
I am delighted that Jasmine Whitbread and Patrick Thomas have been nominated for election to the Board of Directors as Non-executive Directors. Jasmine’s deep understanding of ESG issues and Patrick’s unrivalled industry expertise will further reinforce the breadth and depth of the skillset on the Board.
Lastly, Jan Rupert and Ruggero Magnoni, Non-executive Directors, have indicated that they will not seek re-election at the 2022 AGM, enabling an orderly handover with their successors on their respective Board Committees. Without further changes, the Board will then consist of 16 members, allowing for sufficient representation and diversity of skills in the five Board Committees while avoiding directors sitting on too many committees.
Richemont has a long-standing commitment to doing business responsibly and, last year, made significant progress across its main focus areas in alignment with the UN’s Sustainable Development Goals. Issues about global warming and sustainability have become urgent. If we do not want our generation to leave a dirty and hot planet to our grandchildren, we have to change our habits and show a far bigger appreciation for the ecology and for the planet - not only for human beings but for all of life on the planet, the fauna and the flora. Having been involved in world wildlife and ecology for nearly forty years, I am pleased to report that the following Science-Based Targets (SBT) to reduce greenhouse gas (GHG) emissions in line with the 2015 Paris Agreement and help prevent the worst impacts of climate change, have recently been validated by the Science-Based Target initiative:
- reduce absolute Scope 1 and 2 GHG emissions by 46% by 2030 from a 2019 base year
- source 100% of renewable electricity by 2025
- reduce Scope 3 GHG emissions from purchased goods, services and business travel by 55% per dollar value added by 2030 from a 2019 base year
- and ensure 20% of our key suppliers by emissions have SBTs by 2025.
Nearly 90% of all the plastic produced over the past six decades still exists. Less than 10% of the over 8 billion metric tons of plastic has been recycled. As part of our responsible commitment, we will also phase out use of Polyvinyl chloride (PVC), which is very hard to recycle. Some countries are already banning PVC from their landfills. We will therefore eliminate PVC from all products and packaging by December 2022. Already, all of our Maisons and businesses are working to replace PVC by alternative materials and/or solutions. We will continue to work collaboratively with industry organisations and our business partners to promote best practices across the full supply chain.
The past year has seen Richemont evolve its Human Resources Vision and Mission to offer colleagues greater levels of engagement and support across their entire employee journey. We also reaffirmed our shared values, which promote collegiality, freedom, solidarity and loyalty, to craft the future together.
In closing, though we continue to live in uncertain times geo-politically, I would like to reiterate my confidence in the Group’s long-term prospects with strong Maisons, reinforced governance and capabilities, and heightened commitment to responsible business practices. In an environment that continues to be disrupted by the Covid-19 pandemic, I wish each of you well.
Decisions of the Richemont Annual General Meeting
At the Annual General Meeting of Compagnie Financière Richemont SA (the ‘Company’) held today in Geneva, the shareholders approved all of the matters on the agenda by an overwhelming majority.
Specifically, the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2021, were approved.
Shareholders approved the appointment of new non-executive directors Jasmine Whitbread and Patrick Thomas, and voted in favour for the re-appointment of all Board members who stood for re-election this year.
A dividend of CHF 2.00 per share was approved and will be paid on the listed A registered shares while a dividend of CHF 0.20 per share will be paid on the B registered shares in the Company. The dividend in respect of the A shares will be payable on Thursday, 23 September 2021. The dividend in respect of Richemont South African Depository Receipts will be payable on Wednesday 29 September 2021. It will be subject to Swiss withholding tax at the rate of 35%. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com;
vdg@dynamicsgroup.ch
Richemont's carbon reduction plans for 2025 and 2030 have been validated by the Science Based Targets initiative

We are proud to share that the Science Based targets we submitted in May have been validated by the Science Based Targets initiative. Developed in line with the objectives of the Paris Agreement, they provide us with a clearly defined pathway to reduce gas emissions and help us prevent the worst impacts of climate change, while future-proofing our business for greener growth.
- reduce absolute Scope 1 and 2 GHG emissions by 46% by 2030 from a 2019 base year
- source 100% of renewable electricity by 2025
- reduce Scope 3 GHG emissions from purchased goods, services and business travel by 55% per dollar value added by 2030 from a 2019 base year
- and ensure 20% of our key suppliers by emissions have SBTs by 2025.
Discover more about our initiatives on our 2021 sustainability highlight here: https://richemontsustainability.com/
Changes to Board of Directors and new proposals for AGM
Richemont (the "Company") announces it will publish an amended Notice of Meeting to reflect the new proposals for the upcoming annual general meeting (“AGM”) to be held on 8 September 2021.
In light of the Board’s previously disclosed commitment to evolve governance arrangements to better face the operating challenges the group faces, while aligning with best practice, the Board has enacted the following changes.
Richemont is pleased to announce the nominations of Jasmine Whitbread and Patrick Thomas for election to the Board of Directors. Their appointments are subject to the approval of shareholders at the 2021 AGM due on 8 September 2021. Both Ms Whitbread and Mr Thomas will serve as Non-executive Directors and become members of the Board’s Nominations Committee.
Ms Whitbread is an experienced Non-executive Director with a long-standing interest in ESG issues. She has a leadership and management background spanning marketing, technology, finance, media, telecommunications, and not-for-profit organisations. A British and Swiss national, Jasmine is currently Non-executive Chair of Travis Perkins PLC, a Non-executive Director of Standard Chartered PLC and WPP PLC, a Visiting Fellow at Oxford University and an advisor to Richemont’s Governance and Sustainability Committee. She has previously served as CEO of Save the Children International and London First. Jasmine also served as a Non-executive Director on BT Group PLC where she was a member of the Audit and Risk Committee, and chaired the Digital Impact & Sustainability Committee.
Mr Thomas, a French national, brings more than 30 years of experience in the luxury goods industry. He was the first and only non-family manager of Hermès, where he served as CEO and led the group’s considerable development from 2003 until 2014, after eight years as COO from 1989 to 1997. Patrick equally held senior positions at Lancaster Group and Pernod Ricard. He is currently the Chairman of the Supervisory Board of Champagne Laurent Perrier, the Chairman of the Supervisory Board of Ardian, the Lead Independent Director of Teleperformance, a Non-executive Director of MycoWorks and a Non-executive Director of Shang Xia Trading (China).
Richemont also announces that Non-executive Director Gary Saage will not seek re-election to the Board of Directors in September.
Mr Saage was appointed to the Board in 2010 when he became Group Chief Finance Officer of Richemont. Since 2017, Gary has served as a Non-executive Director and a member of the Nominations Committee. In addition, he is the Chairman of Richemont North America and a Director of Peter Millar LLC, positions that he will retain following the 2021 AGM.
In addition, Non-executive Directors Jan Rupert and Ruggero Magnoni have indicated that they will not seek re-election at the 2022 AGM, allowing time for an orderly handover with their successors on the Strategic Security, Nominations and Audit Committees of the Board.
Regarding the board changes, Johann Rupert, Chairman of Richemont, commented:
“I would like to warmly thank Gary for his considerable contributions to the Group including the Board and the commitment and collegiality he has displayed over the years. His institutional knowledge and understanding of the issues faced by the Group have contributed enormously to Richemont’s continued success.
I am delighted to welcome Jasmine and Patrick to the Board. Both bring unrivalled experience and expertise in areas of great importance to the Group. I am certain that Jasmine’s focus on ESG and Patrick’s successful career in soft luxury will be invaluable as we embark on the next stage of our development.”
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com; vdg@dynamicsgroup.ch
Richemont’s 2021 annual report now available online
Richemont announces the publication of its annual report and accounts for the year ended 31 March 2021. The report is available for download from the Richemont website at www.richemont.com/en/home/investors/results-reports-presentations/
Regarding the year under review, the report reflects the information contained in the Richemont annual results announcement issued on 21 May 2021, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed to parties who have requested it and may be also obtained from the Company’s registered office at the address below or by contacting the Company via the website at www.richemont.com/contact
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196, South Africa.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Strong trading for the first quarter ended 30 June 2021; Changes to Board of Directors and Senior Executive Committee
Highlights
Compared to the first quarter ended 30 June 2020:
- Strong start to the financial year with Group sales up by 129% at constant exchange rates and 121% at actual exchange rates
- Sales up by triple digits in almost all regions, channels and business areas, confirming the enduring appeal of the Group’s Maisons
- Outstanding performance of the Jewellery Maisons and the Specialist Watchmakers, with sales growth of 142% and 143%, respectively, at constant exchanges rates, and 132% and 136%, respectively, at actual exchange rates
- Strong sequential improvement compared to the quarter ended 31 March 2021
Compared to the first quarter ended 30 June 2019:
- Sales up by 22% at constant exchange rates and by 18% at actual exchange rates, exceeding pre-pandemic levels in most business areas, channels and regions
- Solid double-digit sales increases in the Americas, Asia Pacific and Middle East and Africa
- Robust double-digit sales growth in online and offline retail sales (73% of Group sales)
- Performance led by the Jewellery Maisons (+43% and +38% at constant and actual rates)
The Board of Directors approves changes to the Board and Senior Executive Committee to support the strong, sustainable development of its Maisons and businesses
| April-June | 2021 | 2020 | 2019 | % change vs prior year | % change 2021 vs 2019 | ||
| €m | €m | €m | constant rates | actual rates | constant rates | actual rates | |
|
By region |
|||||||
| Europe | 905 | 436 | 1 072 | +108% | +108% | -15% | -16% |
| Asia Pacific | 1 933 | 1 013 | 1 423 | +95% | +91% | +40% | +36% |
| Americas | 955 | 277 | 698 | +276% | +245% | +47% | +37% |
| Japan | 240 | 112 | 298 | +138% | +114% | -14% | -19% |
| Middle East and Africa | 364 | 155 | 249 | +154% | +135% | +55% | +46% |
|
|
|||||||
|
By distribution channel |
|||||||
| Retail | 2 421 | 1 052 | 1 851 | +138% | +130% | +35% | +31% |
| Online retail | 809 | 506 | 648 | +67% | +60% | +29% | +25% |
| Wholesale & royalty income | 1 167 | 435 | 1 241 | +178% | +168% | -3% | -6% |
|
|
|||||||
|
By business area |
|||||||
| Jewellery Maisons | 2 515 | 1 083 | 1 827 | +142% | +132% | +43% | +38% |
| Specialist Watchmakers | 849 | 359 | 823 | +143% | +136% | +6% | +3% |
| Online Distributors | 637 | 356 | 612 | +86% | +79% | +8% | +4% |
| Other | 440 | 204 | 493 | +124% | +116% | -7% | -11% |
| Inter-segment eliminations | -44 | -9 | -15 | +425% | +389% | +204% | +193% |
| Total | 4 397 | 1 993 | 3 740 | +129% | +121% | +22% | +18% |
|
|
|||||||
Review of trading in the three-month period ended 30 June 2021 versus the prior year, at constant exchange rates
Versus the prior year period, which was severely affected by the pandemic, all regions, channels and business areas saw sales progress at triple digit rates, with the exception of Asia Pacific, Online Distributors and online retail where sales grew by double digits.
The 129% increase in sales was led by the Jewellery Maisons and Specialist Watchmakers with growth of 142% and 143%, respectively. The Other business area, mostly composed of our Fashion & Accessories Maisons, also performed strongly, recording 124% sales growth.
The Americas generated the strongest regional performance, with sales increasing by 276% driven by strong local demand, followed by the Middle East and Africa with sales up by 154%. Wholesale and retail led channel growth, with sales progression of 178% and 138%, respectively.
Given the magnitude of the impact of the pandemic on our operations in the three-month period ended 30 June 2020, additional comments compared to the three-month period ended 30 June 2019 are provided below for a more comprehensive view of our current trading.
Review of trading in the three-month period ended 30 June 2021 versus the three-month period ended 30 June 2019, at constant exchange rates
In the period under review, sales exceeded pre-Covid levels. Sales growth of 22% was driven by strong double-digit increases in the Americas, Asia Pacific and the Middle East and Africa. Sales in Europe contracted by 15%, as robust demand from local clientele could not offset the halt in tourist sales. In Asia Pacific, sales increased by 40%, with good momentum across most markets, particularly in mainland China, Macau SAR (China) and South Korea. In the Americas, sales rose by 47%, supported by buoyant domestic demand and thriving retail sales. Sales in Japan declined by 14%, due to renewed public health protection measures and a halt in tourism. The Middle East and Africa posted the strongest regional performance with 55% sales growth, reflecting solid domestic and tourist spending, notably in Dubai and Saudi Arabia.
The online and offline retail channels recorded strong double-digit sales growth. Retail sales, up by 35%, delivered the strongest relative channel performance, supported by double-digit growth at the Jewellery Maisons and Specialist Watchmakers. Retail sales were particularly strong in the US, Russia and Saudi Arabia. Online retail sales rose by 29%, with sustained demand across regions. Sales in the wholesale channel were 3% lower, notwithstanding notably higher sales in the US and Russia.
Sales growth of 43% at the Jewellery Maisons was driven by both strong jewellery and watch sales at Cartier and Van Cleef & Arpels. Sales progressed in most regions and across all channels. The Specialist Watchmakers’ sales increased by 6%, driven by online and offline retail sales and growth in most regions. At the Online Distributors, sales grew by 8%, and Gross Merchandise Value (GMV) increased by 9%. The Group’s Other business area recorded a 7% decline in sales, partly reflecting persistent challenges in the wholesale channel, particularly in travel retail.
The Group’s net cash position at 30 June 2021 was € 3.6 billion (2020: € 1.8 billion), reflecting strong trading.
Board of Directors and Senior Executive Committee
The Nominations Committee and Board of Compagnie Financière Richemont (the ‘Company’) have undertaken a review of the Group’s governance model in light of the ongoing pandemic and the continued acceleration of ‘new retail’.
To further capitalise on our Group’s agility and momentum, the Senior Executive Committee will focus solely on strategic direction, capital allocation, governance, and the provision of central and regional functions for the benefit of our Maisons and businesses. Similarly, the executives in charge of our Maisons and businesses will focus exclusively on the sustainable development of their respective entities, ensuring a customer-centric approach and the continued success of digital initiatives.
Taking these revised responsibilities into account, Cyrille Vigneron, President & Chief Executive of Cartier, and Nicolas Bos, President & Chief Executive of Van Cleef & Arpels, will step down from the Senior Executive Committee and will not seek re-election to the Board of Directors at the Group’s Annual General Meeting (‘AGM’) on 8 September 2021. They will continue to report directly to Johann Rupert, Chairman.
Philippe Fortunato, CEO of Fashion and Accessories, Emmanuel Perrin, Head of Specialist Watchmakers Distribution, and Frank Vivier, Chief Transformation Officer will step down from the Senior Executive Committee. They will continue to report to Jérôme Lambert, Group Chief Executive Officer.
Johann Rupert, Jérôme Lambert and Burkhart Grund, Chief Finance Officer, will remain on the Senior Executive Committee and will stand for re-election to the Board of Directors at the AGM.
These changes will take effect 8 September 2021.
In addition, Alan Quasha, Non-executive Director of the Company and its predecessor companies since the Group’s foundation in 1988, has indicated that he will not seek re-election to the Board of Directors in September.
Commenting on the proposals, Johann Rupert, Chairman, said:
“The continual evolution of our corporate governance structures reflects our commitment to meet the changing demands of our operating environment most efficiently and align with best practice. While the enlarged SEC structure proved effective in the early stages of our transformation journey and in navigating one of the most trying times in recent history, the time is ripe for a more streamlined structure as we embark on the next stage of our development. The outstanding development of Cartier and Van Cleef & Arpels, in particular, means that these businesses have reached a size and scale that require the full attention of their leaders and support of the Group to continue on their remarkable trajectory.
Throughout the pandemic, agility and well-informed rapid decision making have been essential. Decisions must be made as close as possible to customers. These governance changes will allow Maison and business executives to focus exclusively on their customers, colleagues, partners and the sustainable development of their entities at a time when the world is changing rapidly and growing in complexity.
I am grateful to be able to rely on the deep experience and expertise of Cyrille, Nicolas, Philippe, Emmanuel and Frank as well as their strong sense of collegiality. Finally, I would like to thank Alan Quasha for his valued contributions over the past 33 years. We have benefited from his broad understanding of the Group, and his astute perspectives will be missed”.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Disclaimer
The financial information contained in this announcement is unaudited.
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. Richemont's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumer traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers' desire to travel to our retail stores.
As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. 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.
Appendix 1:
Foreign exchange rates
| April-June | April-June | |
| Average exchange rates against the euro | 2021 | 2020 |
| United States dollar | 1.21 | 1.10 |
| Japanese yen | 132 | 118 |
| Swiss franc | 1.10 | 1.06 |
| Renminbi | 7.78 | 7.80 |
Actual exchange rates for the period are calculated using the average daily closing rates against the euro.
In terms of sales at constant exchange rates, average exchange rates for the year ended 31 March 2021 are used to convert local currency sales into euros for the current three-month period and comparative figures. Exchange rate translation effects are thereby eliminated from the reported sales performance.
Richemont publishes FY21 Sustainability report
Richemont announces the publication of its sustainability report for the year ended 31 March 2021.
This year, the Group has reported strong progress across the main focus areas of its Transformational CSR Strategy, in alignment with the UN’s Sustainable Development Goals. For the first time, the report has been verified by Ernst & Young (EY) and incorporates a new chapter dedicated to the progress of individual Maisons and regions, highlighting innovative sustainability initiatives and key developments across the Group.
Richemont has a long-standing commitment to doing business responsibly and, as such, has submitted its proposed targets to the Science-Based Target initiative (SBTi), in line with the 2015 Paris Agreement. At the date of this report’s publication, the SBTi has not concluded its evaluation and the Group’s targets are therefore subject to revision.
Through these and many other innovative measures, the Group recognises the need for continual improvement across its main focus areas – People, Communities, Sourcing and Environment – embodied in Richemont’s Movement for Better Luxury, to create benefits for all. Acknowledging that there is always more to do regarding corporate and industry-wide sustainability efforts, Richemont strives to improve each year. At Richemont, we craft the future.
The report is available for download at www.richemont.com/en/home/sustainability/reporting-centre/.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont acquires Delvaux
Richemont is pleased to announce that it has acquired 100% of Delvaux, the renowned Belgian luxury leather goods Maison, in a private transaction.
Established nearly two centuries ago in 1829, Delvaux is the oldest luxury leather goods Maison in the world. It has a unique heritage, expressed through the richness of its archives, and distinguishes itself through its exceptional savoir faire and creativity. In 1908, Delvaux was the first to file an official patent for a leather handbag and can thus be called the inventor of the modern luxury handbag.
Delvaux’s leather pieces are crafted by skilled artisans in its workshops across Belgium and France, and mostly sold across a highly qualitative network of 50 boutiques worldwide. Richemont’s acquisition will position Delvaux for its next stage of development, by enabling Delvaux to leverage the Group’s global presence and digital capabilities, to develop its omnichannel opportunities and customer engagement.
Philippe Fortunato, CEO of Fashion & Accessories Maisons, commented:
“Delvaux is an authentic European luxury leather goods Maison with strong heritage, distinctive savoir faire and exceptional manufacturing capabilities. The Maison’s rich archives and creative momentum over the last 10 years represent a solid foundation from which to grow the company for the long term, strengthening Richemont’s presence at the pinnacle of the leather goods category. We are delighted to welcome Delvaux’s management and teams to Richemont, and look forward to working closely with them to enable the Maison to reach its full potential under the Group’s stewardship.”
The transaction has no material financial impact on Richemont’s consolidated net assets or operating result for the year ending 31 March 2022. The results of Delvaux will be reported under the ‘Other’ business area.
About Richemont
At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, YOOX, THE OUTNET and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
About Delvaux
Combining creativity and savoir-faire, Delvaux has been crafting timeless leather designs since 1829. Founded in Brussels by Charles Delvaux, its elegant, innovative bags have always offered both freedom and femininity.
Poetic expressions of emotion and craftsmanship, Delvaux’s designs are handmade by artisans who have handed their skills down from generation to generation. Sculptural lines and sensual leathers have long defined La Maison’s creations, instantly recognizable by their quality, sophistication and attention to detail.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont participates in industry collaboration to launch 'Gemstones and Jewellery Community Platform'

Richemont’s Maisons have been collaborating with peers since 2015 through the Coloured Gemstones Working Group that aims to unite the industry through shared commitments to catalyse positive change, for people and planet. A key objective of our collaboration was to create a vehicle to promote responsible business practices within the gemstone industry. The fruit of all our efforts, the 'Gemstones and Jewellery Community Platform' (GJCP), was launched on 29 April during the OECD’s Forum for Responsible Mineral Supply Chains. The GJCP is committed to a transparent, responsible and vibrant jewellery industry and providing all members of the gemstone and jewellery industry with tools and resources to be more responsible in all that they do, including enabling companies move towards RJC and other industry certifications.
Matthew Kilgarriff, Director Corporate Social Responsibility at Richemont explains why the CWCG’s new platform will be so important for the sector. “As we believe in the power of industry collaboration to tackle responsible supply chain challenges, Richemont, Cartier, Van Cleef & Arpels and other actors of the industry co-founded the Coloured Gemstones Working Group (CGWG) to tackle the challenges of this complex industry and develop the first coloured gemstones supply chain responsible practices tool set. With rubies, sapphires and emeralds being incorporated in the RJC Code of Practices in 2019, the tools, research and platform developed by the CGWG will be key for the Group and its suppliers to progress on our due diligence efforts towards improved traceability and transparency in our supply chains. The launch of the Gemstones and Jewellery Community Platform is a milestone in the industry’s responsible journey, and we encourage all our suppliers and actors of the value chain to join the community and leverage its tools.”
Further details about the platform and collaboration opportunities may be found on https://gemstones-and-jewellery.com/.
Tribute to Alber Elbaz
The management and employees of Richemont and AZ Factory wish to express their deep sorrow at the passing of Alber Elbaz.
Paying tribute to Alber Elbaz, Johann Rupert, Chairman, said:
“It was with shock and enormous sadness that I heard of Alber’s sudden passing. Alber had a richly deserved reputation as one of the industry’s brightest and most beloved figures. I was always taken by his intelligence, sensitivity, generosity and unbridled creativity. He was a man of exceptional warmth and talent, and his singular vision, sense of beauty and empathy leave an indelible impression.
It was a great privilege watching Alber in his last endeavour as he worked to realise his dreams of ‘smart fashion that cares’. His inclusive vision of fashion made women feel beautiful and comfortable by blending traditional craftsmanship with technology - highly innovative projects which sought to redefine the industry.
Alber will be greatly missed by all of us who had the good fortune to know him or work with him. On behalf of all of my colleagues at Richemont and AZ Factory, I wish to extend our sincerest condolences to his family and friends.
On a personal note I would like to add that I have lost not only a colleague but a beloved friend.
Rest in peace Alber.”

Alber Elbaz (Portrait credit: A.KOO)
Richemont co-chairs the new SDG Taskforce launched by the Responsible Jewellery Council

The Responsible Jewellery Council (RJC), the leading standard-setting organisation for the jewellery and watch industry supply chain, has announced the launch of an SDG Taskforce to create a unified platform to benchmark members’ progress in the implementation of the 17 UN Sustainable Development Goals (SDGs). The SDG Taskforce will report on progress made within member companies and the industry through the annual RJC Progress Report and updates will be published to a dedicated web page.
The SDG Taskforce will:
- Establish an SDG action Platform to coordinate the efforts of the industry
- Launch a global library of best practices on the SDGs implementation
- Function as a think-tank for new and collaborative projects on SDG implementation
- Report regularly about the progress made through the Annual RJC Progress Report and case studies
- Provide input into the RJC 2030 Roadmap and supporting member metrics, which will enable members to measure and report progress on the SDGs
“Nothing is more important than the continuous improvement in the integrity of the global jewellery supply chain to help strengthen consumer confidence and underpin its future with greater trust. That is why the RJC SDG Taskforce is critical to the future of our industry,” said David Bouffard, Chair of Responsible Jewellery Council.
The SDG Taskforce consists of 26 members and the Executive Director of RJC and is co-chaired by Feriel Zerouki, Senior Vice President, Corporate Affairs, De Beers Group, and Matthew Kilgarriff, Director Corporate Social Responsibility, Richemont, with strategic guidance provided by Georg Kell, founder and former Executive Director of the United Nations Global Compact.
Cartier partners with LVMH and Prada Group to form the Aura Blockchain Consortium

Today, Cartier together with LVMH and the Prada Group announced the creation of the #AuraBlockchain Consortium, supporting the first global blockchain solution dedicated to the luxury industry. The Consortium will promote the use of a single global blockchain solution open to all luxury brands worldwide to provide consumers with additional transparency and traceability. Cartier, LVMH and Prada Group have created together a single solution to address the shared challenges of communicating authenticity, responsible sourcing and sustainability in a secure digital format.
The technology offered by the Aura Blockchain Consortium enables direct-to-consumer access to product history and proof of authenticity. Consumers can easily and transparently follow a product’s lifecycle, from conception through distribution, with trusted data throughout, and thus strengthen their relationship with their favourite luxury brands.
Cyrille Vigneron, President and CEO of Cartier International and Member of Richemont’s Board and Senior Executive Committee: “The Aura Consortium represents an unprecedented cooperation in the luxury industry. Blockchain is a key technology to enhance customer service, relationship with partners and traceability. The luxury industry creates timeless pieces, and must ensure that these rigorous standards will endure and remain in trustworthy hands. We therefore invite the entire profession to join this consortium to design a new luxury era enabled by blockchain technology.”
10 Richemont Maisons exhibit at Watches and Wonders Shanghai on 14-18 April 2021
On 14-18 April 2021, 19 brands will exhibit at the West Bund Art Center for Watches and Wonders Shanghai, including 10 Richemont Maisons: A. Lange & Söhne, Baume & Mercier, Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Montblanc, Panerai, Piaget, Roger Dubuis and Vacheron Constantin.
Set over 5 days, Watches and Wonders Shanghai has a fast-paced programme of activities around the theme of watchmaking: learn a watchmaker’s secrets by assembling a mechanical movement, admire the craftsman’s seasoned hand at workshops, delve into new technologies and innovations at the LAB, and learn more about the challenges and trends in the industry at the many talks and panels. Not only will visitors have the chance to discover some of the watches unveiled online at Watches and Wonders Geneva, they will also be the first to see new models created especially for the Chinese market. Certain Maisons will present unique pieces and iconic heritage watches.

10 Richemont Maisons participate to the 2021 Watches and Wonders event, launched on 7 April

Close to 500 press conferences, over 40 keynotes, a daily live “Morning Show”, six expert-led panels and a wealth of exceptional creations revealed by 38 prestigious participating brands including A. Lange & Söhne, Baume & Mercier, Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Montblanc, Panerai, Piaget, Roger Dubuis, Vacheron Constantin.
Follow the event live on watchesandwonders.com
Watches and Wonders, MR PORTER and NET-A-PORTER further develop their strategic global partnership
This year, the partnership takes on a two-phase journey integrating physical and digital events and campaigns, giving customers “first-to-market” access to a curated selection of launches.
MR PORTER is pleased to showcase one novelty from each of the 11 participating Maisons and NET-A-PORTER is pleased to present one novelty from each of the six Maisons currently available on NET-A-PORTER.
NET-A-PORTER and MR PORTER will follow up their April activity with a second campaign in September 2021, displaying additional novelties and further celebrating the intersection of fine watches and their luxury style and fashion offering.

Richemont supports the New York Fashion Tech Lab 2021 programme

Richemont supports the New York Fashion Tech Lab 2021 programme featuring global, women-led, emerging technology companies.
Decisions of the Richemont Extraordinary General Meeting
At the Extraordinary General Meeting of Compagnie Financière Richemont SA (“the Company”) held in Geneva on 17 November 2020, shareholders approved the creation of the conditional capital and the corresponding amendment to the Company’s articles of association required to implement the shareholder loyalty scheme as reconfirmed by the Company on 16 October 2020.
As part of the scheme, warrants will be distributed to shareholders on 27 November 2020. The A warrants, which relate to A shares, will be listed on SIX Swiss Exchange on the same date. The "Exercise Price" of the A warrants, or the price at which holders of A warrants will be entitled to purchase one Richemont A share in three years, has been set at CHF 67.00, which is the volume-weighted average price of the A shares on SIX Swiss Exchange between 19 October and 13 November 2020. The "Specified Number" of A warrants to be exercised in order to purchase one A share at the Exercise Price has been set at 67.
Further information regarding the scheme, the creation of conditional share capital, and the amendment to the Company’s articles of association can be found in the information memorandum (the ‘Information Memorandum’) published by the Company on 19 October 2020: www.richemont.com/investor-relations/reports
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont’s 2020 Interim Report now available online
Richemont announces the publication of its interim report and accounts for the six months ended 30 September 2020. The report is available for download from the Richemont website at : www.richemont.com/investor-relations/reports
The interim report reflects the information contained in the Richemont results announcement issued on 6 November 2020 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
In accordance with stock exchange regulations in Switzerland and South Africa, Richemont no longer prints its interim report.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
EGM and update to shareholder loyalty scheme
*The official and signed version of this document will be distributed by post to holders of South African depositary receipts on 19 October 2020.
Richemont supports European Sustainable Development Week 2020

European Sustainable Development Week (ESDW), which took place from September 20-26th, is a European-wide initiative to promote sustainable development and the UN’s Sustainable Development Goals (SDGs).
For 2020’s event, Richemont’s European Regional Sustainability team, together with all European markets, organised a broad programme of activities and projects including webinars on topics such as Digital Pollution, Diversity & Inclusion and the Circular economy. Additional activities such as donations or equipment to schools took place but much of the week was focused on building awareness and learning.
We also hosted informative and engaging panel discussions with both external and internal guests, to share the essence of Sustainable Development, the 17 UN Sustainable Development Goals and how we, as Richemont Europe and the Group, are contributing to progress on this front.
Patricia Gandji, Group CEO of Regions and leading Human Resources Function, opened a key session hosting special external guests such as Antonio Hautle, Executive Director, Global Compact Switzerland, and Isabelle Gattiker, General and Artistic Director – International Film festival on Human Rights. Both shared their views on sustainable development and what it means to them in their respective spheres. We also had the opportunity to hear from our internal colleagues: Giorgia Roversi, YNAP Group Sustainability & Inclusion Director, Matthew Kilgarriff, Group Director of Corporate Social Responsibility, and Alexander Foersch, CEO Richemont Europe. This engaging session was co-hosted by Michela Boni and Hazel Annikin, Logistics and Sustainability Director, Richemont Europe.
Homo Faber Guide goes live

Richemont is a proud sponsor of the Michelangelo Foundation, which aims to celebrate and preserve Métiers d’Art in Europe. On 17 September 2020, the Foundation launched Homo Faber Guide, a digital platform focused on fine craftsmanship allowing visitors to discover artisans, experiences, and galleries across 25 European countries
Richemont Maisons participate in WATCHES & WONDERS Shanghai

In partnership with the Fondation de la Haute Horlogerie (FHH), nine of Richemont’s prestigious watch and jewellery Maisons participated in the exclusive event in Shanghai and the digital showcase on Tmall’s Luxury Pavilion that took place on 9-13 September 2020.
Richemont announces temporary suspension of the shareholder loyalty scheme
The Board of Directors of Compagnie Financière Richemont SA (Richemont) announces its intention to study the possibility of delivering Richemont A shares to holders of South African depository receipts, thereby cancelling the Company’s depository receipt programme in South Africa. The contemplated simplified structure is intended to reduce administrative complexity and facilitate cross-border trading in Richemont A shares between investors on the SIX Swiss Exchange and the Johannesburg Stock Exchange.
Consequently, the Board has taken the decision to temporarily postpone the issuance of warrants under the proposed shareholder loyalty scheme, to study the possible impact of this contemplated change in cross-border trading.
The Board will therefore no longer propose the creation of a conditional capital as listed under Item 3 ("Creation of a conditional share capital") in the notice of meeting dated 12 August 2020, at its Annual General Meeting (AGM) due on 9 September 2020. The Board's proposal under Item 3 will therefore be withdrawn from the agenda of the AGM.
The Board will submit a revised proposal on the matter at an Extraordinary General Meeting of shareholders, which will be held later this year.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Decisions of the Richemont Annual General Meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2020.
A dividend of CHF 1.00 per share will be paid on the listed A registered shares and a dividend of CHF 0.10 per share will be paid on the B registered shares in the Company. The dividend in respect of the A shares will be payable on Friday, 18 September 2020. It will be subject to Swiss withholding tax at the rate of 35%. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other Board proposals were also approved by the shareholders by an overwhelming majority.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Laureus Sport for Good passes impact milestone of supporting six million children

Since 2000, Richemont has been supporting Laureus, a global organisation that celebrates sporting excellence and uses the power of sport to transform lives and transcend national boundaries.
Important notice regarding participation at the 2020 AGM (Chairman’s letter)
Dear Shareholder,
In the next few days, you will receive an invitation to the 2020 Annual General Meeting (AGM) of shareholders of Compagnie Financière Richemont SA which will be held on Wednesday, 9 September 2020.
Although the Swiss Government has gradually lifted the main restrictions imposed in the fight against COVID-19 (Coronavirus) disease due to some improvement of the general health situation, the number of infections is again on the rise since mid-June.
The health of Richemont's shareholders and its colleagues is our absolute priority. At the same time, the Company is under a legal obligation to hold its AGM and to ensure the smooth functioning of the Group.
In view of this special situation and to avoid any risk to the health of Richemont's shareholders and colleagues, the Board of Directors has decided to hold this year’s AGM on 9 September 2020 without the attendance of shareholders, in accordance with article 27 of the COVID-19 Ordinance 3 adopted by the Swiss Federal Council on 19 June 2020.
The exercise of your voting rights will be fully guaranteed. Shareholders may exercise their rights in writing or by electronic means, by submitting voting instructions through the Company's registrar, Computershare Schweiz AG, or by sending them directly to the independent representative of the shareholders Etude Gampert Demierre Moreno, Notaires. You will find detailed instructions on how you can participate and provide your voting instructions in the notice of meeting which will be posted on our website: http://www.richemont.com.
Shareholders are entitled to raise questions in advance of the meeting by emailing our Company Secretary, Mr Swen H. Grundmann, email: secretariat@cfrinfo.net, by 11:00 CEST on Monday, 24 August 2020. Answers to questions on key themes will be provided during a webcast at 14:00 CEST on Wednesday, 26 August 2020. The webcast will be available to view on the Richemont website until Wednesday, 9 September 2020.
We thank you for your kind understanding and look forward to welcoming you again in person at our 2021 Annual General Meeting.
Sincerely,
On behalf of the Board of Directors of Compagnie Financière Richemont SA
Johann Rupert
Chairman
Shareholder loyalty scheme, Board nomination and AGM arrangements
*The official and signed version of this document will be distributed by post to holders of South African depositary receipts on 12 August 2020.
Richemont publishes FY20 sustainability report
Richemont announces the publication of its sustainability report for the year ended 31 March 2020.
Richemont’s Transformational CSR Strategy, which launched last year, is centred on four focus areas – People, Communities, Sourcing and Environment – encompassed by strong governance, active engagement and continuous innovation in materials and processes. It is expressed by a series of short, medium and long term targets. This year’s report describes our progress against those targets, in particular our short term targets due for completion by December 2020.
Our Group has a long-standing commitment to doing business responsibly. We recognise the need for continual progress and strive to improve each year, embodying Richemont’s Movement for Better Luxury.
The report is available for download at www.richemont.com/sustainability
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Appointment to Richemont Senior Executive Committee
Richemont announces that, effective 1 September 2020, Philippe Fortunato will assume the role of CEO of Fashion & Accessories Maisons and will join the Group's Senior Executive Committee.
Philippe Fortunato will report to Jérôme Lambert, Chief Executive Officer of Richemont.
Mr Fortunato joins from Givenchy, where he has served as CEO since 2014. Prior to that, he has held several positions at the Chalhoub Group and across LVMH, at Christian Dior Couture, Fendi and Louis Vuitton. A graduate from the EDHEC business school and the University of Brighton, Mr Fortunato brings over 30 years of managerial experience in the luxury industry and strong international exposure.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Change to Richemont Senior Executive Committee
Richemont announces that Sophie Guieysse is stepping down from the Senior Executive Committee with immediate effect, and will not stand for re-election to the Board of Directors at the annual general meeting on 9 September 2020.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Media reports on Group Human Resources function
Further to media reports, Richemont confirms that it has initiated a comprehensive review of its Human Resources function, which may have an impact on the composition of its Senior Executive Committee.
No decision has been made so far.
The Company has no further comments to make at this stage.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont announces DEI developments including creation of Group DEI Council
Richemont’s increasing focus on Diversity, Equity and Inclusion (DEI) continues to grow throughout the organisation. Back in January 2019, Marina Corti was appointed Group DEI Director, responsible for defining the Group strategy and driving key initiatives in this important area, which Richemont believes is core to fostering creativity, innovation and entrepreneurship in our employees.
Ensuring group-wide progress towards DEI objectives requires increasing awareness and engagement throughout our global team of colleagues. With this in mind, we have formed a Group DEI Council to add to our already existing framework of DEI Champions and DEI Allies.
This cross-functional team includes five senior leaders from our Maisons, functions and markets, and five employees from across the Group. The inaugural team is made up of five Gen-Z employees to offer their perspective on what DEI means to them. Future appointments to the Council will be on a rotating 12month basis to ensure the many and varied views and perceptions of all our colleagues have the potential to contribute to and have impact on our DEI journey. Council members are given specific training to develop DEI expertise and are charged with sponsoring and guiding Group DEI initiatives as well as monitoring overall progress.
In addition to this important step, we have created Regional DEI Directors for Europe and Richemont North America. The increasing commitment of our Maisons to the Group DEI programme is shown among others by the nomination of a dedicated DEI representative for Cartier North America.
Richemont’s 2020 annual report now available online
Richemont announces the publication of its annual report and accounts for the year ended 31 March 2020. The report is available for download from the Richemont website at www.richemont.com/investor-relations/reports
Regarding the year under review, the report reflects the information contained in the Richemont annual results announcement issued on 15 May 2020, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed at the end of June to parties who have requested it. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at www.richemont.com/group/contact
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196, South Africa.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont announces the expiry of its share buy-back programme
Richemont announces that its 2017 share buy-back programme expired on 20 May 2020. During the three years of the 2017 share buy-back programme, the Company repurchased 4'200'000 shares.
Details of purchases under the 2017 share buy-back programme are available at: www.richemont.com/investor-relations/share-buy-back-information/share-buy-back-information-archive
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Richemont places €2.0 billion Euro denominated bond
Richemont announces that it has successfully placed a Euro denominated bond transaction today with a volume of €2.0 billion.
The transaction launched on 18 May with three tranches maturing in 2028, 2032 and 2040. The notes are priced with a coupon of 0.750% for the €0.50 billion 8 year maturity note, 1.125% for the €0.85 billion 12 year note and 1.625% for the €0.65 billion 20 year note.
The notes are expected to receive a rating of A+. S&P Global Ratings recently affirmed the A+ rating of Compagnie Financière Richemont SA and revised the outlook to negative from stable.
Net proceeds of the notes issued will be used for the Group’s general corporate purposes.
Commenting on the bond transaction, Burkhart Grund, Chief Finance Officer of Richemont, said:
“The significant interest from investors demonstrates recognition of our strong cash generation profile and unique business model around Maisons with centuries of heritage as well as digital native businesses. Whilst Richemont has a robust balance sheet and more than adequate cash resources, we view it prudent to secure additional liquidity to weather potentially tougher times ahead. This bond transaction will support the long term development of our Maisons and businesses.”
Richemont will make an application for the notes to be listed on the regulated market of the Luxembourg Stock Exchange.
About Richemont
Richemont owns a portfolio of leading international Maisons recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier, and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, primarily Fashion & Accessories Maisons, including Alaïa, Chloé, dunhill, Montblanc and Peter Millar.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Investor/analyst and media enquiries
Sophie Cagnard, Group Corporate Communications Director
James Fraser, Investor Relations Executive
Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com
Our first APAC Regional CSR Initiative: Response to the Australian Bushfire Crisis

As the pandemic continues to impact our lives on a global scale, it is imperative that we give back and support our communities in any way that we can.
This summer, our Annual CSR Report highlights our very first APAC CSR initiative launched in January - a fundraising campaign led by our Richemont colleagues in Australia. In order to support those who were affected by the bushfire crisis, Richemont came together as a region and supported charities that worked hard to help those who were in need. This included: Red Cross Australia, Rural Fire Service RFS, and WIRES Wildlife Rescue.
This was the first ever APAC Regional CSR collaboration, and its success really highlights how compassionate Richemont APAC is as a region. We look forward to more initiatives in the future!
Richemont’s 2019 Interim Report now available online
Richemont announces the publication of its annual report and accounts for the year ended 31 March 2019. The report is available for download from the Richemont website at www.richemont.com/investor-relations/reports
Regarding the year under review, the report reflects the information contained in the Richemont annual results announcement issued on 17 May 2019, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed at the end of June to parties who have requested it. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at www.richemont.com/group/contact
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196, South Africa.
The official notice for the 2019 annual general meeting and the definitive resolutions to be considered by shareholders will be published on the Group’s website and in the Swiss Gazette on or around 17 July 2019.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, mostly Fashion & Accessories Maisons, including dunhill, Alaïa, Chloé, Montblanc and Peter Millar.
‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332). South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).
Richemont and Alber Elbaz announce partnership
Richemont and Alber Elbaz are pleased to announce the signing of an agreement to form a joint venture, called “AZfashion” (AlberelbaZfashion). AZfashion will be an innovative and dynamic start up, meant to turn dreams into reality.
Commenting on the partnership, Johann Rupert, Chairman of Richemont, said:
“Upon hearing Alber Elbaz describe his vision for fashion and the projects it inspires in him, I was again struck by his creativity and insight. His talent and inventiveness, with his sensitivity towards women and their wellbeing, will be of great value to our Group and its Maisons. We warmly welcome Alber to Richemont and look forward to an exciting partnership.”
Commenting on the partnership, Alber Elbaz said:
“I am very happy to partner with Richemont and to establish my “dream factory”, which will focus on developing solutions for women of our times. I am extremely excited to collaborate with good people, talented and smart individuals and look forward to also having a lot of fun with this new adventure.”
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, mostly Fashion & Accessories Maisons, including dunhill, Alaïa, Chloé, Montblanc and Peter Millar.
‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332) and are included in the Swiss Market Index (‘SMI’) of leading stocks. South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).
Richemont acquires Buccellati
Richemont is pleased to announce that it has acquired 100% of Buccellati Holding Italia S.p.A., the owner of Buccellati, the renowned Italian jewellery Maison, in a private transaction with Gangtai Group Corporation Limited, a privately held conglomerate, which captures the growth in the consumer, culture, finance, and health industries.
Buccellati was founded in Milan in 1919 by Mr Mario Buccellati. The Maison has a rich history and patrimony, distinguished by exceptional craftsmanship and unique know-how. Its jewellery creations are renowned for their highly distinctive look-and-feel evoking silk, damask, tulle and linen. All jewellery pieces are handcrafted with techniques dating back to the Renaissance, in Buccellati’s four in-house workshops, all located in Italy. Buccellati is also active in the fields of watchmaking and silverware.
Commenting on the acquisition, Mr Johann Rupert, Chairman of Richemont, said:
“Distinguished by strong heritage, craftsmanship and family spirit, Buccellati is one of the few Maisons in the dynamic branded jewellery market which is complementary to our existing jewellery Maisons, in terms of style, origins and craftsmanship. Buccellati meets the needs of today’s customers who are looking for creative jewellery, with a highly distinctive style.
We welcome Andrea Buccellati, his family and his team. With them, we share a culture of constant quest for creativity, innovation, quality and excellence. We look forward to ensuring the long term development of this unique jewellery Maison.”
Mr Xu Jiangang, founder and Chairman of Gangtai Group, commented:
“We are extremely glad to have successfully contributed to the introduction of the prestigious Buccellati brand in the Greater China market, strengthening Buccellati’s identity and enhancing all of the elements which make it one of the best-known brands worldwide in the fine jewellery sector. We are now honoured and proud that Richemont will continue the journey, ensuring Buccellati’s great success, starting from the celebration of its 100th Anniversary.”
Mr Andrea Buccellati, Honorary Chairman and Creative Director of Buccellati, said:
“We are proud to join Richemont, a family-spirited Group and nurturer of prestigious luxury Maisons, with an undisputed expertise in jewellery. We value their long term strategic thinking and look forward to seeing the potential of Buccellati realised as part of Richemont.”
The transaction closed on 26 September 2019 and will have no material financial impact on Richemont’s consolidated net assets or operating result for the year ending 31 March 2020. The results of Buccellati will be reported under the Jewellery Maisons business area.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, mostly Fashion & Accessories Maisons, including dunhill, Alaïa, Chloé, Montblanc and Peter Millar.
‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing, (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332). South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).
About Gangtai Group
Gangtai Group is a privately held conglomerate which captures the growth in the consumer, culture, finance, and health industries. Gangtai Group aims at being a multinational leader in improving quality of life. Its subsidiary, Gangsu Gangtai Holding (Group) Co. Ltd, is one of largest gold jewelry distributers and a leading internet jewelry retailer in China.
About Buccellati
Buccellati is one of the world’s most renowned high jewellery houses, celebrated for its craftsmanship, design, and one-of-a-kind masterpieces. Buccellati jewels are admired worldwide not only for their design and genuine craftsmanship, but also for the house’s signature engraving techniques, which date back to the ancient traditions of the goldsmith’s ateliers of the Italian Renaissance. Buccellati boutiques can be found worldwide in Milan, Venice, Florence, Cala Di Volpe, Capri, Monte Carlo, Paris, London, Moscow, Dubai, Beirut, Kuwait, Doha, New York, Chicago, Aspen, Beverly Hills, Bal Harbour, Palm Beach, Houston, Hong Kong, Tokyo, Seoul, Osaka, Nagoya, Shanghai, Beijing and Macau. In 2019, Buccellati celebrates its 100th Anniversary.
Volunteer Day: RBC Race For The Kids at Brookfield Place
#OneRichemont
On Saturday, September 21, 2019 Richemont and Maison employees from New York and Shelton participated in the RBC Race for the Kids held in downtown Manhattan. This is the second year Richemont has participatedin this charitable global race.
The money raised goes towards programs that provide access to quality education and vocational training opportunities to kids and youth.
More than 3,700 runners, supporters, families, and friends from over 30 companies came together for a day of friendly competition and fun – all while raising critical funds for New York City youth. Together, RBC Race for the Kids raised $1.7M (and counting!) to support the tireless efforts of Youth INC’s 80 nonprofit partners and four charity beneficiaries, all of whom are working to transform the lives of young people in every corner of our city.
Although the event has passed, anyone who missed it can still show their support by donating through the RBC Race for the Kids website.
Decisions of the Richemont Annual General Meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2019.
A dividend of CHF 2.00 per share will be paid on the listed ‘A’ registered shares and a dividend of CHF 0.20 per share will be paid on the ‘B’ registered shares in the Company. The dividend in respect of the ‘A’ shares will be payable on Friday, 20 September 2019, free of charges but subject to Swiss withholding tax at the rate of 35%. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were also approved by the shareholders by an overwhelming majority.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, mostly Fashion & Accessories Maisons, including dunhill, Alaïa, Chloé, Montblanc and Peter Millar.
‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332) and are included in the Swiss Market Index (‘SMI’) of leading stocks. South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).
Change to Richemont Senior Executive Committee
Richemont announces that Mr Eric Vallat, Head of Fashion & Accessories Maisons, will step down from his current position and from the Senior Executive Committee for personal reasons. This change is effective 26 October 2019.
Commenting on Mr Vallat's decision, Mr Johann Rupert, Chairman, said:
“Eric has been offered a wonderful opportunity outside the Group and I fully understand his decision to pursue it.
We would like to thank Eric for his many contributions to the Group’s fashion and accessories businesses, positioning them well for the future. We wish him well.”
Richemont's Fashion & Accessories Maisons will report to Mr Jérôme Lambert, Group Chief Executive Officer.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, namely Cartier and Van Cleef & Arpels; Specialist Watchmakers, namely A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, namely YOOX NET-A-PORTER GROUP (NET-A-PORTER, MR PORTER, YOOX, THE OUTNET) and Watchfinder & Co.; and Other, mostly Fashion & Accessories Maisons, including dunhill, Alaïa, Chloé, Montblanc and Peter Millar.
‘A’ shares issued by Compagnie Financière Richemont SA are listed and traded on SIX Swiss Exchange, the Company’s primary listing (Reuters ‘CFR.VX’/Bloomberg ‘CFR:VX’/ISIN CH0210483332) and are included in the Swiss Market Index (‘SMI’) of leading stocks. South African depository receipts in respect of Richemont ‘A’ shares are traded on the Johannesburg stock exchange, the Company’s secondary listing (Reuters ‘CFRJ.J’/Bloomberg ‘CFR:SJ’/ISIN CH0045159024).
Corporate calendar
The Group’s annual general meeting will be held on Wednesday, 11 September 2019 in Geneva, and its interim results for the current financial year will be announced on Friday, 8 November 2019.
Investor/analyst and media enquiries
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Sophie Cagnard, Group Corporate Communications Director James Fraser, Investor Relations Executive |
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| Investor/analyst enquiries | +41 22 721 30 03 | investor.relations@cfrinfo.net | |
| Media enquiries | +41 22 721 35 07 | pressoffice@cfrinfo.net richemont@teneo.com |
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| Further information available at www.richemont.com | |||
Richemont’s 2019 Annual Report now available online
Richemont announces the publication of its annual report and accounts for the year ended 31 March 2019. The report is available for download from the Richemont website at www.richemont.com/investor-relations/reports
Regarding the year under review, the report reflects the information contained in the Richemont annual results announcement issued on 17 May 2019, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed at the end of June to parties who have requested it. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at www.richemont.com/group/contact
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196, South Africa.
The official notice for the 2019 annual general meeting and the definitive resolutions to be considered by shareholders will be published on the Group’s website and in the Swiss Gazette on or around 17 July 2019.
Results for the year ended 31 March 2019
For the English version of the annual results company announcement please click here
For the abridged French version of the annual results company annoucement please click here
Tribute to Mr Karl Lagerfeld
The management and employees of Richemont wish to express their deep sorrow at the news of the passing of Mr Karl Lagerfeld.
Mr Johann Rupert, Chairman of Richemont, paid the following tribute to Mr Karl Lagerfeld:
“On behalf of all of my colleagues at Richemont, allow me to extend our most sincere condolences to Mr Lagerfeld’s family and to his friends.
“Mr Karl Lagerfeld’s exceptional talent shaped the Maison Chloé for over twenty five years. In 1992, he joined our Group having sold his fashion business to Richemont. After many years of working together and admiring his extremely successful career, I was deeply saddened to learn of his passing.
“Karl was a man of immense culture, creativity and refinement, marked by a vast and eclectic array of interests. He was incredibly successful in reinterpreting a Maison DNA, year after year. As such, he was and will remain an inspiration to many.”
Richemont’s 2018 Interim Report now available online
Richemont, the Swiss luxury goods group, announces the publication of its interim report and accounts for the six months ended 30 September 2018. The report is available for download from the Richemont website at https://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement issued on 9 November 2018 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
In accordance with stock exchange regulations in Switzerland and South Africa, Richemont no longer prints its interim report.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, being YOOX NET-A-PORTER GROUP and Watchfinder.co.uk; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Montblanc and Peter Millar.
For the financial year ended 31 March 2018, Richemont reported sales of € 10 979 million, operating profit of € 1 844 million and profit for the year of € 1 221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depositary Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont reports five months sales at Annual General Meeting
Ahead of the meeting, the Group announces that its sales for the five months ended 31 August 2018 increased by 25% at constant exchange rates and by 22% at actual exchange rates.
Excluding YOOX NET-A-PORTER GROUP (YNAP) and Watchfinder.co.uk (Watchfinder), which have been consolidated in the Group’s accounts since 1 May 2018 and 1 June 2018 respectively, sales for the period increased by 10% at constant exchange rates and by 7% at actual exchange rates.
Current trading - five month period ended 31 August 2018
| 2018 € m |
2017 € m |
Change at constant exchange rates * |
Change at actual exchange rates |
|
| Sales by region | ||||
| Europe | 1 722 | 1 358 | + 28% | + 27% |
| Asia Pacific | 2 132 | 1 784 | + 23% | + 20% |
| Americas | 1 005 | 745 | + 42% | + 35% |
| Japan | 441 | 405 | + 13% | + 9% |
| Middle-East and Africa | 367 | 368 | + 4% | - |
| Sales by distribution channel |
||||
| Retail | 3 026 | 2 714 | + 15% | + 11% |
| Online Retail | 708 | - | n/a | n/a |
| Wholesale | 1 933 | 1 946 | + 2% | - 1% |
| Sales by business area | ||||
| Jewellery Maisons | 2 878 | 2 604 | + 14% | + 11% |
| Specialist Watchmakers | 1 298 | 1 276 | + 4% | + 2% |
| Online Distributors | 720 | - | n/a | n/a |
| Other | 791 | 780 | + 4% | + 1% |
| Inter-segment eliminations |
(20) | - | n/a | n/a |
| Total Sales | 5 667 | 4 660 | + 25% | + 22% |
* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current five-month period and the comparative period at the average exchange rates applicable for the financial year ended 31 March 2018
The following commentary on the Group’s performance refers to year-on-year movements at constant exchange rates.
Double digit sales growth during the first five months was primarily driven by strong performance by the Jewellery Maisons, where sales grew 14%, and the first-time consolidation of Online Distributors. For this new business area, which regroups YNAP and Watchfinder, sales grew at a double digit rate.
In order to provide meaningful comparisons to the prior year period, the comments below relate to current period sales excluding YNAP and Watchfinder.
All regions, with the exception of the Middle East, posted growth, led by solid momentum in Asia Pacific and the Americas. Hong Kong, Korea and Macau all generated double digit increases while China showed good growth. Europe had mixed performances throughout the region and was impacted by the strength of the euro and a challenging year-on-year comparison in the United Kingdom. In Japan, growth reflected both higher domestic and tourist spending.
Retail sales increased by 14%, with growth in all regions, most notably in Asia Pacific and the Americas. Retail sales were driven by strong performances by the Jewellery Maisons and the Specialist Watchmakers. Wholesale sales increased 2%, reflecting our continued focus to align inventories with end-client demand.
Richemont’s other businesses reported a 4% sales growth, partly impacted by the divestments of Lancel and Shanghai Tang. Most Maisons performed positively, led primarily by Peter Millar and Azzedine Alaïa, and a solid performance from Montblanc.
The results for the six months ending 30 September 2018 will be announced on 9 November 2018.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, being YOOX NET-A-PORTER GROUP and Watchfinder.co.uk; Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Montblanc and Peter Millar.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Decisions of the Richemont Annual General Meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2018.
A dividend of CHF 1.900 per share will be paid on the listed 'A' registered shares and a dividend of CHF 0.190 per share will be paid on the 'B' registered shares in the Company. The dividend in respect of the ‘A’ shares will be payable on 21 September 2018, free of charges but subject to Swiss withholding tax at the rate of 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were also approved by the shareholders by an overwhelming majority.
About Richemont shares
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Appointment of Jérôme Lambert as Group Chief Executive Officer
Richemont is pleased to announce the appointment of Mr Jérôme Lambert, currently Group Chief Operating Officer, as Group Chief Executive Officer with immediate effect.
Mr Lambert has had an extensive career with Richemont, having led Jaeger-LeCoultre and Montblanc and overseen the Group’s Specialist Watchmakers, Montblanc and the Group’s Fashion and Accessories businesses prior to taking on the role of Group Chief Operating Officer last year.
“Jérôme’s new role sees him taking responsibility for the Group’s future growth at a time when consumer habits are changing significantly. As we position the Group to meet these challenges, he will lead the development of strategic plans reflecting the long-term objectives and priorities established by the Board.
As first amongst equals, he will work in partnership with his fellow senior executives on the Board: Cyrille Vigneron, Chief Executive of Cartier, Nicolas Bos, Chief Executive of Van Cleef & Arpels and Burkhart Grund, Chief Finance Officer, to ensure a coherent approach to achieving our common goals while respecting the individuality of our Maisons.”
Richemont’s Specialist Watchmakers, Online Distributors and Other businesses, as well as central and regional functions, will report to Jérôme. Jérôme will continue to be supported by Sophie Guieysse, Group Human Resources Director, Federico Marchetti, CEO of YOOX NET-A-PORTER GROUP, Emmanuel Perrin in overseeing the Group’s Specialist Watchmaker Maisons and by Eric Vallat, Head of Fashion and Accessories Maisons.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in four business areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors, being YOOX NET-A-PORTER GROUP and Watchfinder.co.uk; Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Montblanc and Peter Millar.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Change to Richemont Board of Directors
Richemont, the Swiss luxury goods group, announces that it proposes Ms Sophie Guieysse for election as an Executive Director to the Board of Directors of Compagnie Financière Richemont SA. The election will take place at the next Annual General Meeting, to be held on 10 September 2018.
Ms Guieysse is currently Group Human Resources Director of Richemont and a member of its Senior Executive Committee. Ms Guieysse will report to Mr Lambert, Group Chief Operating Officer, equally member of the Senior Executive Committee and a Director on the Board of Compagnie Financière Richemont SA.
Ms Guieysse joined Richemont in her current capacity in October 2017 from Dior where she had been advising on the future of luxury in a connected world. She serves on the Board of Directors of Maisons du Monde and is Chairman of the Nominations & Compensation Committee. In addition, Ms Guieysse is a member of the Remuneration Committee of Paris 2024 Olympic Games Organising Committee and of the 2023 Rugby World Cup Organising Committee.
Details regarding the Board of Directors may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/board-of-cfr-sa.html
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont owns YOOX NET-A-PORTER GROUP S.p.A., the world’s leading online luxury retailer.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Sells Lancel
Richemont, the Swiss luxury goods group, announces that it has completed the sale of its wholly-owned subsidiary, Lancel, a French luxury leather goods company, on 2 June 2018 to Piquadro S.p.A., an Italian leather goods group listed on the Milan Stock Exchange. The transaction will have no material impact on Richemont’s balance sheet, cash flow or results for the year ending 31 March 2019.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont’s voluntary public tender offer for all ordinary shares of YOOX NET-APORTER GROUP S.p.A. is expected to complete in June 2018.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Acquires Watchfinder.co.uk Limited
Richemont, the Swiss luxury goods group, is pleased to announce that it has reached agreement to acquire 100% of the share capital of Watchfinder.co.uk Limited (“Watchfinder” or “the Company”), the leading pre-owned premium watch specialist, in a private transaction with its shareholders.
Established in 2002 in the United Kingdom, Watchfinder has grown organically under the careful stewardship of co-founder Stuart Hennell to become the leading platform to research, buy and sell premium pre-owned watches, both online and through its seven boutiques. In addition, Watchfinder operates a highly qualified customer service centre and employs c.200 employees worldwide.
Commenting on the transaction, Mr Johann Rupert, Chairman of Richemont, said:
“Sixteen years ago, Watchfinder’s founders foresaw the need for an online marketplace for premium pre-owned timepieces. Watch enthusiasts themselves, they established Watchfinder to provide excellence in customer experience. We believe there are substantial opportunities to help grow the Company further. Today, Watchfinder operates both as an ‘online’ and ‘offline’ business in a complementary, growing, and still relatively unstructured segment of the industry.
Together with YOOX NET-A-PORTER and our stake in Dufry, the acquisition of Watchfinder is another step in Richemont’s strategy. It will enable us to better serve the sophisticated needs of a discerning clientele.
We welcome Stuart Hennell and his team, and look forward to ensuring Watchfinder remains the compelling destination for premium pre-owned timepieces.”
The transaction is expected to close in the summer of 2018 and will have no material impact on Richemont’s consolidated net assets or operating result for the year ending 31 March 2019.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont’s voluntary public tender offer for all ordinary shares of YOOX NET-APORTER GROUP S.p.A. is expected to complete in June 2018.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont’s 2018 Annual Report now available online
Richemont, the Swiss luxury goods group, announces the publication of its annual report and accounts for the year ended 31 March 2018. The report is available for download from the Richemont website at www.richemont.com/investor-relations/reports.html
Regarding the year under review, the report reflects the information contained in the Richemont annual results announcement issued on 18 May 2018, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed on 27 June 2018 to holders of Richemont shares and South African depositary receipts and other parties who have requested it. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at www.richemont.com/group/contact.html
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196, South Africa.
The official notice for the 2018 annual general meeting and the definitive resolutions to be considered by shareholders will be published on the Group’s website and in the Swiss Gazette on or around 18 July 2018.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont’s voluntary public tender offer for all ordinary shares of YOOX NET-APORTER GROUP S.p.A. is expected to complete in June 2018.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Appointment to the Senior Executive Committee
Richemont, the Swiss luxury goods group, announces Mr Eric Vallat has been appointed to the newly created role of Head of Fashion & Accessories Maisons and will join the Group’s Senior Executive Committee, effective 1 June 2018.
Mr Eric Vallat will report to Mr Jérôme Lambert, Chief Operating Officer.
A graduate from the HEC business school (France), Mr Vallat brings over 20 years of managerial experience across Louis Vuitton Europe, Christian Dior Couture Japan, Bonpoint and J.M. Weston and, since 2014, Rémy Martin as CEO. In his latest position, Mr Vallat was also a member of the Rémy Cointreau Group’s Executive Committee and, since 2016, chairman of Mount Gay Rum.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
For the financial year ended 31 March 2018, Richemont reported sales of € 10'979 million, operating profit of € 1'844 million and profit for the year of € 1'221 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont announces resignation of Chief Technology Officer
Compagnie Financière Richemont SA (Richemont), the Swiss luxury goods group, announces that Dr Jean-Jacques Van Oosten has relinquished his responsibilities as Chief Technology Officer for personal reasons and has stepped down from the Senior Executive Committee with effect from 2 May 2018.
We respect Dr Jean-Jacques Van Oosten’s decision to pursue his career outside the Group and wish him every success in his future endeavours.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in YOOX NET-A-PORTER GROUP, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10'647 million, operating profit of € 1'764 million and profit for the year of € 1'210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (‘SMI’) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont places €3.75 billion inaugural Euro denominated bond
Richemont, the Swiss luxury goods group, announces that it has successfully placed its inaugural Euro denominated bond transaction today with a volume of €3.75 billion, following a roadshow with fixed income investors across Europe.
The transaction launched on 15 March with three tranches maturing in 2026, 2030 and 2038. The notes are priced with a coupon of 1.0% for the €1.5bn 8 year maturity note, 1.5% for the €1.25bn 12 year note and 2.0% for the €1.0bn 20 year note.
The notes are expected to receive a rating of A+ (stable) in line with the rating assigned to Compagnie Financière Richemont SA by S&P Global Ratings.
The net proceeds of the issue of the notes will be used for the Group’s general corporate purposes, which may include funding the acquisition of the ordinary shares of YOOX NET-A-PORTER GROUP S.p.A. (YNAP), in whole or in part, pursuant to the YNAP voluntary public tender offer.
Commenting on the bond transaction, Johann Rupert, Chairman of Richemont, said:
Quote
“This transaction positions Richemont with European bond investors for the first time. We are pleased at the support the inaugural bond issue has received from investors, which demonstrates confidence in the quality of our assets and strength of our balance sheet. In line with Richemont’s prudent balance sheet policy, we have taken advantage of the low interest rate environment to raise long-term debt. We will use the funds to invest in the development of our businesses.”
Unquote
Richemont will make an application for the notes to be listed on the regulated market of the Luxembourg Stock Exchange.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in YOOX NET-A-PORTER GROUP, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10'647 million, operating profit of € 1'764 million and profit for the year of € 1'210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Tribute to Mr Azzedine Alaïa
Tribute to Mr Azzedine Alaïa
Paying tribute to Mr Azzedine Alaïa Mr Johann Rupert, Chairman, said:
“Azzedine Alaïa was not only a colleague but a great friend, so it was with shock and enormous sadness that I heard of his untimely passing. The industry has lost an exceptional talent. He was a man of integrity and kindness who was also a true creative genius. With his unique approach to couture, he created a distinctive style that will forever set his creations apart.
Azzedine will be missed by all of us who had the good fortune to work with him. I wish to extend my sincerest condolences to his family and his friends.”
Established in 1983, the Maison Azzedine Alaïa, under the artistic control of Mr Alaïa, developed a reputation for originality in design as well as the choice and cut of materials. Each piece is unique, crafted with traditional dressmaking skills and passion in Mr Alaïa’s Parisian atelier.
Richemont Interim Report 2017 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2017. The report may be downloaded from the Richemont website at https://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement issued on 10 November 2017 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
In accordance with stock exchange regulations in Switzerland and South Africa, Richemont no longer prints its interim report.
______________________________________
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Depository Receipts in respect of Richemont ‘A’ shares are listed on the Johannesburg stock exchange operated by JSE Limited, Richemont’s secondary listing.
Richemont announces changes to its Senior Executive Committee
Chief Operating Officer
Mr Jérôme Lambert has been appointed to the newly created role of Chief Operating Officer. Mr Lambert will be responsible for all Maisons other than Cartier and Van Cleef & Arpels. In addition, he will continue to be responsible for the Richemont regional support platforms and central support services, excluding Finance, Human Resources and Technology.
Specialist Watchmakers
To assist Mr Lambert, Mr Emmanuel Perrin, currently International Sales Director of Cartier, will be appointed Head of Specialist Watchmakers Distribution. In this newly created position, he will be responsible for the coordination of all Specialist Watchmakers’ distribution strategies. Mr Perrin will join the Senior Executive Committee effective immediately.
Commenting on the changes, Mr Johann Rupert, Chairman, said:
“The changes announced today will continue our transformation of the Specialist Watchmakers’ business models to meet the demands of today’s environment. Mr Perrin, in his twenty-five years with the Group, has been successful with Van Cleef & Arpels and, most recently, Cartier, in developing partnerships with our wholesale partners. A prime area of focus will be matching supply with end customer demand.”
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin as well as the Ralph Lauren Watch and Jewellery joint venture; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10'647 million, operating profit of € 1'764 million and profit for the year of € 1'210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Significant movement in operating profit and profit for the period for the six months ended 30 September 2017
SIX Swiss Exchange requires that issuers make an announcement without delay where the foreseeable profit or loss for a given period is expected to deviate significantly from the profit or loss achieved in the prior year period. Both significant increases and decreases in the anticipated, unaudited profit or loss require the publication of an ad hoc notice to the market. In accordance with these requirements, Richemont makes the following announcement:
Trading for the six months ended 30 September 2017 showed sales rising 10% on a reported basis and 12% on a constant currency basis compared to the prior year period. On this basis, Richemont’s operating profit for the six months ended 30 September 2017 is likely to show an increase of approximately 45% against the comparative period. The corresponding profit for the period is expected to increase by approximately 80%. These increases predominantly reflect the non-recurrence of the exceptional inventory buy-backs in the prior year period, improved trading performance and the positive net impact of movements in period-end exchange rates.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin as well as the Ralph Lauren Watch and Jewellery joint venture; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10 647 million, operating profit of € 1 764 million and profit for the year of € 1 210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Cautionary statement regarding forward-looking statements
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Words such as ‘may’, ‘should’, ‘estimate’, ‘project’, ‘plan’, ‘believe’, ‘expect’, ‘anticipate’, ‘intend’, ‘potential’, ‘goal’, ‘strategy’, ‘target’, ‘will’, ‘seek’ and similar expressions may identify forward-looking statements. 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.
Appointments to the Senior Executive Committee
Richemont, the Swiss luxury goods group, wishes to announce the following appointments to its Senior Executive Committee.
Chief Technology Officer
Dr Jean-Jacques van Oosten has been appointed to the newly created role of Chief Technology Officer and will join the Senior Executive Committee effective 1 January 2018.
Dr van Oosten’s twenty one-year career has been primarily in the retail and digital sectors. Prior to his latest role as Group Chief Digital Officer and CEO of Rewe Digital, Dr van Oosten held a number of CIO positions at Travis Perkins Group, Tesco, Kingfisher, EDS and Unilever. Through his consulting company, Dr van Oosten advised retailers on their multichannel strategy, roadmap and transformation programmes. He graduated from the London Business School and holds a PhD in molecular genetics.
Group Human Resources Director
Ms Sophie Guieysse has been appointed Group Human Resources Director and will join the Senior Executive Committee effective 1 October 2017.
A graduate from the Ecole Polytechnique and Ecole Nationale des Ponts et Chaussées, Ms Guieysse began her career holding operational functions at a number of French Ministries. From 1997 until 2005, she held various human resources roles at LVMH. Her ultimate role there was as Director of Human Resources of the LVMH group. In 2005, Ms Guieysse joined Canal + group where she spent ten years as Human Resources Director and member of the Executive Committee. Since 2016, Ms Guieysse had been advising Dior on the future of luxury in a connected world.
Ms Guieysse will succeed Mr Thomas Lindemann who will leave Richemont for personal reasons and step down from the Group Management Committee with effect from 31 October 2017. Mr Lindemann was appointed Group Human Resources Director and member of the Group Management Committee in 2005. Prior to that, he held the role of Human Resources Director first at Montblanc and then at Richemont Northern Europe.
Commenting on the changes, Mr Johann Rupert, Chairman, said:
Quote
“I am delighted that Jean-Jacques van Oosten and Sophie Guieysse are joining Richemont and its Senior Executive Committee. The creation of the Chief Technology Officer position and Jean-Jacques van Oosten’s appointment reaffirms Richemont’s commitment to meet the demands of today’s environment. Jean-Jacques van Oosten brings over fifteen years of experience in scaling, transforming and internationalising online and multichannel businesses. Sophie Guieysse brings a twenty-year Human Resources experience across diverse cultural environments in the luxury and digital sectors.
These appointments will strengthen significantly the Group's ability to address current challenges and bring Richemont into a new era of agility and performance.
I want also to take this opportunity to thank Thomas Lindemann for his contribution to the Group over the last twenty years and the progress made during his tenure as Group Human Resources Director. He has established a highly professional team in Geneva and a strong human resource function across all our platforms. We wish Thomas every success in his future endeavours.”
Unquote
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin as well as the Ralph Lauren Watch and Jewellery joint venture; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10 647 million, operating profit of € 1 764 million and profit for the year of € 1 210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont reports five months sales at Annual General Meeting
| Change at constant exchange rates versus prior period* | Change at actual exchange rates versus prior period | |
Sales by region |
||
| Europe | + 3% | + 3% |
| Asia Pacific | + 23% | + 22% |
| Americas | + 9% | + 9% |
| Japan | + 11% | + 6% |
| Middle-East and Africa | + 2% | + 1% |
Sales by distribution channel |
||
| Retail | + 12% | + 10% |
| Wholesale | + 11% | + 11% |
| Sales by segment | ||
| Jewellery Maisons | + 17% | + 16% |
| Specialist Watchmakers | + 7% | + 6% |
| Other | + 3% | + 2% |
Total Sales |
+ 12% | + 10% |
* Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current five-month period and the comparative period at the average exchange rates applicable for the financial year ended 31 March 2017.
Compagnie Financière Richemont SA’s Annual General Meeting will be held later today in Geneva, Switzerland.
Ahead of that meeting, the Group announces that its sales for the five months ended 31 August 2017 increased by 12% at constant exchange rates and by 10% at actual exchange rates. Excluding the exceptional inventory buy-backs in the comparative period, constant currency sales increased by 7% for the period.
Current trading - five month period ended 31 August 2017
The following comments on the Group’s performance refer to year-on-year movements at constant exchange rates.
The double digit sales growth during the first five months was primarily driven by strong performance in the Jewellery Maisons and easier comparative figures.
Sales increased in all regions, led by Asia Pacific. The strong performance in Asia Pacific was supported by double digit increases in most markets, including China and Hong Kong, where a large part of the exceptional inventory buy-backs took place in the comparative period. The 3% growth in Europe reflects contrasted performances within the region as well as the emerging negative impact of a strong euro on tourist spending. In the United Kingdom, however, sales grew at a double digit rate benefitting from favourable currency movements. In Japan, growth reflected higher domestic and tourist spending. Sales in the Middle East showed subdued growth, impacted by geopolitical uncertainties.
Retail sales increased in most regions, with solid growth in Asia Pacific, Japan and the Americas. Retail sales were driven by strong performances in the Jewellery Maisons and the Specialist Watchmakers as well as by the reopening of the Cartier flagship stores in New York and Tokyo a year ago. The 11% increase in wholesale sales primarily reflects the impact of the non-recurrence of the exceptional inventory buy-backs.
Richemont’s other businesses reported sales growth overall, with most Maisons showing continued progress.
The results for the six-months ending 30 September 2017 will be announced on 10 November 2017.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin as well as the Ralph Lauren Watch and Jewellery joint venture; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Lancel, Montblanc and Peter Millar as well as watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
For the financial year ended 31 March 2017, Richemont reported sales of € 10 647 million, operating profit of € 1 764 million and profit for the year of € 1 210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Decisions of the Richemont Annual General Meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2017.
A dividend of CHF 1.800 per share will be paid on the listed 'A' registered shares and a dividend of CHF 0.180 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 22 September 2017, free of charges but subject to Swiss withholding tax at the rate of 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were also approved by the shareholders by an overwhelming majority.
__________________________________________
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont announces resignation of Head of Watchmaking, Marketing and Digital
Richemont regrets to announce the resignation with immediate effect of Mr Georges Kern. Mr Kern was Head of Watchmaking, Marketing and Digital. He has stepped down from the Senior Executive Committee and the Group Management Committee and will no longer be standing for election to the Board of Directors of Compagnie Financière Richemont SA at the forthcoming annual general meeting of shareholders.
Commenting on Mr Kern's decision, Mr Johann Rupert, Chairman, said:
Quote
Georges has been offered an interesting opportunity to become an entrepreneur.
He has had a very successful career at IWC Schaffhausen and we wish him well.
Unquote
Richemont's watchmaking, marketing and digital activities will report to the Senior Executive Committee.
__________________________________________
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three business areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, including Alfred Dunhill, Chloé, Lancel, Montblanc as well as other smaller Maisons and unbranded watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
For its financial year ended 31 March 2017, Richemont reported sales of € 10 647 million. Operating profit for the year amounted to € 1 764 million. Net profit for the year amounted to € 1 210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont sells Shanghai Tang
Richemont, the Swiss luxury goods group, announces that it has completed the sale of its wholly-owned subsidiary, Shanghai Tang, on 30 June 2017 to an entity controlled by Mr Alessandro Bastagli, an Italian entrepreneur. The transaction will have no material impact on Richemont’s balance sheet, cash flow or results for the year ending 31 March 2018.
Established in 1994 in Hong Kong by Sir David Tang, Shanghai Tang was the first contemporary luxury brand from China. Its modern and sophisticated range of men’s and women’s clothing, accessories and home decorations combine the style and heritage of the orient with western design influences. Richemont took a controlling stake in 1998 and acquired 100% ownership in 2008.
__________________________________________
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three business areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, including Alfred Dunhill, Chloé, Lancel, Montblanc as well as other smaller Maisons and unbranded watch component manufacturing activities.
In addition, Richemont holds a 49% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
For its financial year ended 31 March 2017, Richemont reported sales of € 10 647 million. Operating profit for the year amounted to € 1 764 million. Net profit for the year amounted to € 1 210 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual Report 2017 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2017.
Regarding the year under review, the report reflects the information contained in the Richemont results announcement issued on 12 May 2017, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed on 23 June 2017 to all holders of Richemont shares and South African depositary receipts and to other parties who have requested it. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below.
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196, South Africa.
The official notice for the 2017 annual general meeting and the definitive resolutions to be considered by shareholders will be published on the Group’s website and in the Swiss Gazette on or around 19 July 2017.
__________________________________________
Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont announces the end of the share buy-back programme initiated in May 2014 and the launch of a new programme
Richemont’s three-year share buy-back programme announced on 15 May 2014 ended today. Under the programme, the Company repurchased a total of 5 185 000 ‘A’ shares, representing 0.9 % of the capital and 0.5 % of the voting rights of Compagnie Financière Richemont SA. Richemont’s share purchase history can be found on the Company’s website at:
https://www.richemont.com/investor-relations/share-buy-back-information.html
In addition, Richemont announces a new programme to buy-back up to 10 million Richemont ‘A’ shares through the market over the next three years, representing 1.7 % of the capital and 1.0 % of the voting rights of Compagnie Financière Richemont SA.
Purchases will be effected through ‘A’ share purchases on SIX Swiss Exchange at prevailing market prices. The ‘A’ shares acquired will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. The ‘A’ shares to be acquired will be held in treasury to hedge awards to executives under the Group’s stock option plan.
Richemont currently holds 9.4 million ‘A’ shares in treasury as a consequence of previous buy-back programmes, which were also linked to the Group’s stock option plan. Those shares represent 1.6 % of the capital and 0.9 % of the voting rights of the Company.
__________________________________________
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Interim Report 2016 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2016. The report may be downloaded from the Richemont website at https://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement issued on 4 November 2016 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
In accordance with stock exchange regulations in Switzerland and South Africa, Richemont no longer prints its interim report.
______________________________________
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to the Board of Directors and Senior Management
The Nominations Committee and Board of Compagnie Financière Richemont SA met yesterday and, inter alia, considered succession planning issues. The Board considered the impact on the Group’s management structure of the impending retirement of key executives. It also considered the composition of the Board itself, recognising that rapidly changing technologies bring significant challenges to traditional business models.
Mr Richard Lepeu, Chief Executive Officer, has intimated his intention to retire with effect from 31 March 2017, when he will have reached retirement age. Mr Gary Saage, Chief Financial Officer, will re-join his family in the United States and retire from his current role effective 31 July 2017.
The Board has therefore decided to restructure the responsibilities of senior management in the Group, recognising the need to be able to react quickly to the challenges facing businesses in general and the luxury industry at this time.
Mr Johann Rupert will remain as Executive Chairman of the Group. The following senior executives will be nominated to the Board of Compagnie Financière Richemont SA for shareholder approval at the annual general meeting to be held in September 2017:
Mr Nicolas Bos, who will join the Board in his capacity as CEO of Van Cleef & Arpels;
Mr Burkhart Grund, currently Deputy Chief Financial Officer, who will become Chief Financial Officer;
Mr Georges Kern, currently CEO of IWC Schaffhausen, who will be Head of Watchmaking, Marketing and Digital;
Mr Jérôme Lambert, currently CEO of Montblanc, who will be Head of Operations responsible for central and regional services and all Maisons other than jewellery and watchmaking.
Further nominees to the Board of Directors of the Company may be intimated ahead of the annual general meeting to be held in 2017.
The following directors will retire from the Board of Directors of Compagnie Financière Richemont SA at the 2017 annual general meeting: Mr Yves-André Istel, Mr Bernard Fornas, Mr Richard Lepeu, Mr Simon Murray, Mr Norbert Platt, Lord Renwick of Clifton, Professor Juergen Schrempp and The Duke of Wellington.
Recognising the importance of continuity in the decision making process, the Board wishes to retain the wealth of knowledge that long-serving members and former executives bring to the decision-making process. Mr Istel, Mr Murray, Lord Renwick, Professor Schrempp and The Duke of Wellington will join a new International Advisory Council. The function of the Council will be to act as a sounding board for the Board of Directors, drawing on the significant expertise of its members. Messrs Fornas, Lepeu and Platt, together with Mr Alain-Dominique Perrin, will be appointed as senior advisors to Group management, liaising directly with the Executive Chairman and senior executives.
Mr Burkhart Grund, Deputy Chief Financial Officer, and Mr Frank Vivier, Chief Transformation Officer, will join the Group Management Committee with immediate effect.
Commenting on the proposals, Mr Johann Rupert, Chairman, said:
Quote
We are presenting today a series of changes to the way in which the Group operates which will take effect over the coming year. This reflects the retirement of some of our senior colleagues, as anticipated, which we have used as an opportunity to re-think the way in which the senior management group is structured. The changes we have proposed today will strengthen the Group’s ability to respond to the dynamic markets in which we operate, especially in the developing field of digital marketing and e-commerce.
I would like to thank both Richard Lepeu and Gary Saage for their invaluable contribution to Richemont over the past 30 or so years in the case of Richard and some 28 years for Gary. Both have been loyal and hard-working colleagues. Richard has earned his retirement and I thank him sincerely for his valuable contribution across our luxury goods businesses, including at Vendome and Cartier as well as here at Richemont. Gary’s family live in the USA and he has commuted across the Atlantic to visit them for almost 10 years. He has wanted to retire for some time and I have repeatedly persuaded him to stay. Now it is time for him to move back, having established a highly professional team in Geneva and a strong finance function across all our platforms. That the Group’s cash flow, even in these difficult times, has been so strong is a tribute to Gary’s management of the balance sheet. His contribution to the Group and his unwavering loyalty and support should never be underestimated.
Our senior board members are also retiring but their expertise will not be lost to the Group. Richemont has benefited from their wisdom and input over the years and I look forward to continuing to work with them all in an advisory capacity either as members of the International Advisory Council or as senior advisors to management. In these challenging times, their contribution will continue to be highly valued.
Unquote
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc as well as other smaller Maisons and watch component manufacturing activities for third parties. In addition, Richemont holds a 50% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont reports five months sales at Annual General Meeting
| Change at constant exchange rates versus prior period | Change at actual exchange rates versus prior period | |
Sales by region |
||
| Europe | - 18% | - 20% |
| Asia Pacific | - 9% | - 12% |
| Americas | - 6% | - 8% |
| Japan | - 25% | - 15% |
| Middle-East and Africa | - 10% | - 12% |
Sales by distribution channel |
||
| Retail | - 6% | - 8% |
| Wholesale | - 21% | - 22% |
| Sales by business area | ||
| Jewellery Maisons | - 15% | - 16% |
| Specialist Watchmakers | - 18% | - 19% |
| Other | + 3% | + 2% |
Total |
- 13% | - 14% |
Compagnie Financière Richemont SA’s Annual General Meeting will be held later today in Geneva.
Ahead of that meeting, the Group announces that its sales for the first five months of the current financial year ended 31 August 2016 decreased by 13% at constant exchange rates and 14% at actual rates. Excluding exceptional watch returns taken back from our multi-brand retail partners, constant currency sales decreased by 10% for the period. The Group also comments on the outlook for the six months ending 30 September 2016.
Following the merger of the Net-A-Porter Group with YOOX S.p.A in October 2015, the figures in the table above exclude The Net-A-Porter Group’s sales in the prior period.
As expected, sales for the five-month period ended 31 August 2016 were below the prior year’s level, reflecting the challenging comparative figures in 2015, the repurchase of slow moving watch inventory and the difficult global environment. Overall currency movements also adversely impacted the Group’s sales.
The following comments on the Group’s underlying performance refer to year-on-year movements at constant exchange rates.
Sales in the United Kingdom have shown growth since the weakening of sterling against most currencies at the end of June following the EU referendum. Elsewhere in Europe, sales were down, particularly in France, due to a significantly lower level of tourist activity. The Americas saw positive momentum in both jewellery and accessories but saw an overall decline in sales due to a weaker performance in watches. In the Asia-Pacific region, growth in mainland China and Korea was more than offset by the continuing weakness of the Hong Kong and Macau markets. The policy of buying back inventory to assist our multi-brand retail partners was primarily focused on these two markets. Japan reported significantly lower sales against very high comparative figures. The strength of the yen also depressed tourist spending in the country, with a noticeable impact on sales.
Retail declined overall, primarily due to Europe and Japan. All other regions’ sales declines were low single digits, supported by jewellery and accessories. The marked decrease in wholesale sales reflected the continuing negative trend overall, and the above mentioned watch inventory buy backs.
Richemont’s other businesses, as a whole, reported sales growth, thanks to positive performances at Montblanc, Chloé, Azzedine Alaïa and Peter Millar.
Outlook
We consider that the difficult trading conditions are likely to continue during September. Operating profit for the six months ending 30 September 2016 is therefore expected to be approximately 45% below the prior year’s level, reflecting the effect of one-off restructuring charges of approximately €65 million, and the additional effect of the product buy-backs.
Consequently, we anticipate profit for the period for the six months ending 30 September 2016 will also be impacted at a broadly similar level to the decline in operating profit. Profit for the period reflects not only the movement in operating profit but also the impact of movements in period-end exchange rates, interest, taxation and discontinued operations and therefore cannot be determined absolutely at this time. The results for the six months ending 30 September 2016 will be announced on 4 November 2016.
We are of the view that the current negative environment as a whole is unlikely to reverse in the short term. However, we remain convinced of the long-term prospects for luxury goods globally, and in particular for watches and jewellery. Richemont is well positioned, with a strong balance sheet and a portfolio of long-established Maisons.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, being Alfred Dunhill, Chloé, Azzedine Alaïa, Lancel, Montblanc and Peter Millar as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2016, Richemont reported sales of € 11 076 million. Operating profit for that year amounted to € 2 061 million and profit for the year amounted to € 2 227 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Decisions of the Richemont Annual General Meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2016.
A dividend of CHF 1.700 per share will be paid on the listed 'A' registered shares and a dividend of CHF 0.170 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 23 September 2016, free of charges but subject to Swiss withholding tax at the rate of 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were also approved by the shareholders by an overwhelming majority.
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Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual Report 2016 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2016. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
Regarding the year under review, the report reflects the information contained in the Richemont results announcement, which was issued on 20 May 2016, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed on 24 June 2016 to all holders of Richemont shares and South African depositary receipts and to other parties who have requested it. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/about-richemont/contact.html
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001.
The official notice for the 2016 annual general meeting and the definitive resolutions to be considered by shareholders will be published in the Swiss Gazette on or around 20 July 2016.
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Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to the Senior Executive Committee
Compagnie Financière Richemont SA announces the retirement of Mr Bernard Fornas from his current role as Co-Chief Executive Officer with effect from 31 March 2016. He will also retire from Richemont’s Senior Executive Committee and the Group Management Committee.
From 1 April, Mr Fornas will continue to serve on the Board of Directors as a Non-Executive Director and will serve on its Nominations Committee. He will stand for re-election by the shareholders at the next Annual General Meeting (‘AGM’).
Mr Fornas has served as Co-Chief Executive Officer, alongside Mr Richard Lepeu, since April 2013 and as a member of the Board since September 2013. He joined Cartier in 1994 and, over the following 22 years, has made an outstanding contribution to the profitable growth of that Maison and to the Group in general. The Board looks forward to his contribution in the years ahead.
Mr Johann Rupert, Chairman of Richemont, said:
“Bernard Fornas has contributed hugely to the development of Cartier, and latterly the larger Richemont group, over the past 22 years. Through his understanding of luxury, his leadership skills and his keen eye for detail, he has been a major figure in the significant growth that the Group has enjoyed over the past decade.
As the luxury goods domain evolves around us, Richemont’s Board is delighted that Bernard has chosen to serve Richemont’s shareholders for many more years to come.”
Richemont also announces that Mr Cyrille Vigneron, Chief Executive Officer of Cartier, will become a member of the Senior Executive Committee with effect from 1 April 2016. He will continue to be a member of the Group Management Committee. As previously announced, Mr Vigneron will stand for election to the Board of Directors at the next AGM.
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc as well as other smaller Maisons and watch component manufacturing activities for third parties. In addition, Richemont holds a 50% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to the Board of Directors
Compagnie Financière Richemont SA announces that Mr Alain Dominique Perrin will not be standing for re-election at the next Annual General Meeting (‘AGM’), to be held on 14 September 2016. He will continue to serve as a member of the Board of Directors and of its Nominations Committee until that date. Thereafter, to ensure that Richemont and its Maisons can continue to benefit from his wide experience, he will serve as a consultant. The 2016 annual report will contain further information regarding this change.
Richemont also announces the nomination of Mr Jeff Moss for election to the Board of Directors. His appointment is subject to the approval of the shareholders at the next AGM. Mr Moss will serve as a Non-Executive Director and become a member of the Board’s Nominations and Strategic Security Committees.
Mr Moss is a computer security and internet security expert. He currently serves as: a member of the U.S. Department of Homeland Security Advisory Council; a member of the Council on Foreign Relations; a Nonresident Senior Fellow at the Atlantic Council; and a member of the Georgetown University School of Law Cybersecurity Advisory Committee. Previously Mr Moss has served as: Chief Security Officer of the Internet Corporation for Assigned Names and Numbers (‘ICANN’); and a director at Secure Computing Corporation. He is the founder of the Black Hat Briefings and DEF CON. He is a graduate of Gonzaga University, U.S.A.
Details regarding the Board of Directors may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/board-of-cfr-sa.html
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc as well as other smaller Maisons and watch component manufacturing activities for third parties. In addition, Richemont holds a 50% equity-accounted interest in the YOOX Net-A-Porter Group, a publicly traded company.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Interim Report 2015 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2015. The report may be downloaded from the Richemont website at https://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement issued on 6 November 2015 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
In accordance with stock exchange regulations in Switzerland and South Africa, Richemont no longer prints its interim report.
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Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to senior management at Cartier
Richemont announces that Mr Stanislas de Quercize, the Chief Executive Officer of Cartier, has requested that he be allowed to step down from his current position and from the Group Management Committee for personal reasons. This change is effective immediately. Mr de Quercize will remain as a Group executive, taking over the role of Chairman of Richemont France.
Succeeding Mr de Quercize as Chief Executive Officer of Cartier will be Mr Cyrille Vigneron, currently the President of LVMH Japan. Prior to joining the LVMH Group, Mr. Vigneron worked with Richemont from 1988 to 2013. He worked principally with Cartier, rising to become Managing Director of Cartier Japan, President of Richemont Japan, and finally, Managing Director of Cartier Europe.
LVMH and Richemont have agreed that Mr Vigneron will formally assume his new position on 1 January 2016.
In his capacity as Chief Executive Officer of Cartier, Mr Vigneron will become a member of the Group Management Committee from 1 January 2016. Thereafter, he will be nominated for election to Compagnie Financière Richemont’s Board of Directors in September 2016.
Johann Rupert, Chairman of Richemont, said:
“Stanislas de Quercize has had a superb career to date, having worked with Cartier, Montblanc and Alfred Dunhill prior to taking up positions as Chief Executive of Van Cleef & Arpels and Cartier. I and all my colleagues on the Board, in management and across both Richemont and Cartier, recognise his commitment, work ethic and enthusiasm. We deeply regret that Stanislas has decided to stand down but must accept his decision.
Cyrille Vigneron is an old colleague and a highly capable and effective leader. We welcome him back to Cartier. I look forward to a smooth transition from Stanislas to Cyrille and know that he will have the full support of Cartier management and employees. I look forward to Cyrille’s contribution to further building Cartier’s reputation as the world’s leading jewellery and haute horlogerie Maison.”
Further details regarding the Richemont Group Management Committee may be found on the Group’s website at: https://www.richemont.com/group/corporate-governance/senior-executive-committee.html
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Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Merger of Net-A-Porter with YOOX completed with a significant one-off accounting gain estimated between € 610 and € 670 million
Richemont announces that the merger of its subsidiary, The Net-A-Porter Group, with YOOX S.p.A. (‘YOOX’ or ‘YOOX Group’) has been completed.
As a consequence of the all-share transaction, Richemont has received 65’599’597 shares in the enlarged YOOX Net-A-Porter Group. Those shares represent in aggregate, on a fully diluted basis, 50 % of the share capital of the combined entity’s listed parent company. In order to preserve the independence of YOOX Net-A-Porter Group, Richemont’s voting rights are limited to 25 %. Two representatives from Richemont will serve on the Board of the combined entity’s listed parent company. Richemont will equity account its investment in YOOX Net-A-Porter Group.
Richemont has committed to a lock-up period of three years in respect of shares equivalent to 25 % of the total share capital of the combined entity.
The all-share transaction will generate a significant one-off, non-cash, accounting gain in Richemont’s financial statements for the full-year ending 31 March 2016. The gain will be reported within ‘Profit from discontinued operations’. No gain will be recorded in the interim results for the period ended 30 September 2015. Based on the 2 October closing YOOX share price of € 28.06, the amount of the pre- and post-tax accounting gain is estimated to be between € 610 million and € 670 million.
Richemont is currently in a silent period and will be available for comments regarding this transaction after the announcement of its interim results on 6 November 2015.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc, Peter Millar as well as other smaller Maisons and watch component manufacturing activities for third parties. Richemont also holds an investment in YOOX Net-A-Porter Group.
For its financial year ended 31 March 2015, Richemont’s net profit amounted to € 1 334 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
About YOOX Net-A-Porter Group
YOOX Net-A-Porter Group S.p.A. is incorporated in Italy and is listed on Borsa Italiana, the Italian stock exchange. Further details regarding YOOX Net-A-Porter Group may be found at: www.yooxgroup.com
Richemont reports robust five months sales at Annual General Meeting
| Change at constant exchange rates versus prior period | Change at actual exchange rates versus prior period | |
Sales by region |
||
| Europe | + 26 % | + 27 % |
| Middle-East and Africa | + 2 % | + 24 % |
| Asia-Pacific | - 18 % | - 2 % |
| Americas | + 2 % | + 22 % |
| Japan | + 48 % | + 53 % |
Sales by distribution channel |
||
| Retail | + 14 % | + 28 % |
| Wholesale | - 6 % | + 5 % |
Sales by business area |
||
| Jewellery Maisons | + 6 % | + 20 % |
| Specialist Watchmakers | - 1 % | + 10 % |
| Other | + 7 % | + 19 % |
Total |
+ 4 % | + 16 % |
Ahead of its Annual General Meeting to be held today in Geneva, Richemont announces that its sales for the five months ended 31 August 2015 increased by 4 % at constant exchange rates. At actual exchange rates, sales rose by 16 %, positively impacted by the weakening of the euro against the US dollar and related currencies, as well as the strong performance of the Maisons’ boutiques. The Cartier and Van Cleef & Arpels Maisons performed exceptionally well in a volatile environment.
Following the agreement to merge the Net-A-Porter Group with YOOX S.p.A announced on 31 March 2015, the figures in the table above exclude The Net-A-Porter Group’s sales in both periods. That transaction is expected to be completed in October 2015.
The following comments refer to changes at constant exchange rates.
Sales performance was mixed, with double-digit increases in Europe and Japan offsetting decreases in Asia Pacific and soft demand in Americas and the Middle East.
European sales benefitted from good tourist numbers, helped by the weakness of the euro versus the US dollar and other currencies. In the Asia Pacific region, sales in Hong Kong and Macau were significantly lower. Mainland China resumed growth with retail sales growing at a strong double-digit rate, overcoming lower wholesale demand; other markets in the region saw positive developments. Sales growth in the Americas was subdued, supported by High Jewellery, Fashion & Accessories and e-commerce. Japan enjoyed strong momentum, both from local and tourist demand, helped by a weak Yen.
Retail was strong overall, with many Maisons reporting double-digit growth supported by strong jewellery, High Jewellery, and Leather sales. Of particular note was the high growth in sales through the Maisons’ own boutiques in Europe and Japan. The marked decrease in wholesale sales reflected the negative trend in the Asia Pacific region, where the environment continues to be extremely challenging.
By business area, the performance reflected the comments above for sales by region and channel. In their own boutiques, the Jewellery Maisons also reported growth in watch sales.The Specialist Watchmakers suffered from weak demand in the Asia Pacific region, offsetting good momentum elsewhere. Richemont’s other businesses reported good growth overall, with the negative impact on sales from ongoing reorganisations at Alfred Dunhill and Lancel being more than counterbalanced by the positive performances at Montblanc, Chloé and Peter Millar.
Richemont’s interim results for the six-month period to 30 September 2015 will be released on 6 November 2015.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three areas: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc and Peter Millar as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2015, Richemont reported sales of € 10 410 million. Operating profit for that year amounted to € 2 670 million and net profit amounted to € 1 334 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual General Meeting 2015
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2015.
A dividend of CHF 1.600 per share will be paid on the listed 'A' registered shares and a dividend of CHF 0.160 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 22 September 2015, free of charges but subject to Swiss withholding tax at the rate of 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were also approved by the shareholders by an overwhelming majority.
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Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual Report 2015 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2015. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
Regarding the year under review, the report reflects the information contained in the Richemont results announcement, which was issued on 22 May 2015, as well as the audited consolidated financial statements which were posted on the Group’s website the same day. The report also contains the audited Company financial statements and Compensation Report.
The report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested it on 26 June 2015. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/about-richemont/contact.html
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001, (PO Box 61051, Marshalltown 2107).
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Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Significant movement in net profit for the year ended 31 March 2015
SIX Swiss Exchange requires that issuers make an announcement without delay where the foreseeable profit or loss for a given period is expected to deviate significantly from the profit or loss achieved in the prior year. Both significant falls and increases in the anticipated, unaudited profit or loss require the publication of an ad-hoc notice to the market. In accordance with these requirements, Richemont makes the following announcement:
Significant movement in net profit
Compared to the previous financial year, Richemont’s net profit for the year ended 31 March 2015 is expected to show a decrease of some 36 %. This significant decrease reflects non-cash, mark-to-market losses on financial instruments, which include monetary items and derivatives. The majority of such non-cash losses are not subject to tax. Accordingly, the Group’s effective tax rate for the year is expected to significantly increase.
Non-cash, mark-to-market losses had no material impact on the Group’s net cash position, which amounted to some € 5.4 billion at 31 March 2015.
Other matters
Richemont takes the opportunity of a mandatory ad-hoc notice to publish other information relating to its current financial year-end.
1. Discontinued operation and re-presented financial statements
Following the announcement made on 31 March 2015, Richemont’s current interest in The Net-A-Porter Group will be classified as ‘held for sale’ at the current year-end. The results of that business will be reported as a ‘discontinued operation’ in the Group’s consolidated statement of comprehensive income for the two years ended 31 March 2015 and 2014. As a consequence, previously reported Richemont sales and operating profit will be re-presented, excluding the results of The Net-A-Porter Group.
2. Trading update and expected operating profit
Including The Net-A-Porter Group’s results, Richemont’s sales for the year ended 31 March 2015 would have increased by 5 % on a reported basis and by 2 % on a constant currency basis compared to the previous financial year.
On a re-presented basis, excluding the results of the discontinued operation, Richemont’s sales in the year ended 31 March 2015 increased by 4 % on a reported basis and by 1 % on a constant currency basis. Richemont’s operating profit for the year ended 31 March 2015 is expected to show an increase of 10 %, including the previously disclosed gain on an investment property disposal. The re-presentation has no material impact on the Group’s operating profit or net profit in the 2015 and 2014 financial years, nor on the Group’s net cash position at 31 March 2015.
3. Corporate calendar
The Group’s results for the year ended 31 March 2015 will be announced in detail on 22 May 2015.
About Richemont
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Cautionary statement regarding forward-looking statements
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Words such as ‘may’, ‘should’, ‘estimate’, ‘project’, ‘plan’, ‘believe’, ‘expect’, ‘anticipate’, ‘intend’, ‘potential’, ‘goal’, ‘strategy’, ‘target’, ‘will’, ‘seek’ and similar expressions may identify forward-looking statements. 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 signs agreement to merge The Net-A-Porter Group with YOOX Group
Richemont announces that it has entered into a binding, conditional agreement to merge the operations of its subsidiary, The Net-A-Porter Group, with YOOX S.p.A. (“YOOX” or “YOOX Group”) in an all-share transaction. YOOX Group is the global Internet retailing partner for leading fashion brands, which has established itself amongst the market leaders with the multi-brand online stores yoox.com, thecorner.com and shoescribe.com, as well as with numerous mono-brand online stores. YOOX S.p.A. is incorporated in Italy and is listed on Borsa Italiana, the Italian stock exchange. Information on YOOX Group can be found at www.yooxgroup.com
The agreement is conditional upon the approval of YOOX shareholders at a meeting which it is expected to be held in June 2015. Upon completion of the transaction, the combined entity will be renamed ‘YOOX Net-A-Porter Group’, will continue to be incorporated in Italy and listed on Borsa Italiana. Ms Natalie Massenet, Founder and Executive Chairman of The Net-A-Porter Group, will serve as Executive Chairman and Mr Federico Marchetti, Founder and CEO of YOOX Group, will be CEO of the combined entity.
Richemont will receive, in aggregate, on a fully diluted basis 50 % of the share capital of the combined entity’s listed parent company. In order to preserve the independence of YOOX Net-A-Porter Group, Richemont’s voting rights will be limited to 25%. Richemont has committed to a lock-up period of three years in respect of shares equivalent to 25% of the total share capital of the combined entity. Upon completion, Richemont will appoint two representatives to the combined company’s board of directors, which will have a minimum of twelve members. Following completion, YOOX Net-A-Porter Group is expected to launch a capital increase of up to € 200 million to fund future growth opportunities and allow for the entry of strategic investors. Richemont is expected to participate in this capital increase.
Johann Rupert, Chairman of Richemont said:
“Richemont has been a pioneer in luxury e-commerce, first as a minority shareholder of Net-A-Porter in its infancy and then as a controlling shareholder since 2010. We are proud of Net-A-Porter’s achievements under the leadership of Natalie Massenet, ably assisted by a wonderful team of professionals.
Established business models are being increasingly disrupted by the technological giants. It is with this in mind that we believe it is important to increase leadership and size to protect the uniqueness of the luxury industry. The merger of the two leaders will further enhance an independent, neutral platform for a sophisticated clientele looking for luxury brands.”
The transaction is expected to complete in September 2015 after shareholder and regulatory approval. Thereafter, Richemont will equity account its investment in the enlarged YOOX Net-A-Porter Group. This transaction will generate a one-off, non-cash, accounting gain in Richemont’s financial statements for the year ending 31 March 2016 of approximately € 317 million (at both the pre- and post- tax levels), based on currently available information. Excluding the one-off, non-cash accounting gain, the transaction is otherwise expected to be broadly earnings neutral in terms of Richemont’s net income for the financial year ending 31 March 2016, based on currently available information.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, being Montblanc, Alfred Dunhill, Chloé, Lancel and Net-A-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
About YOOX Group
YOOX Group is the global Internet retailing partner for leading fashion & design brands. It has established itself amongst the market leaders with the multi-brand online stores yoox.com, thecorner.com and shoescribe.com, as well as with numerous mono-brand online stores, all of which are "Powered by YOOX Group." The Group is also a partner of Kering, with which it has created a joint venture dedicated to the management of the mono-brand online stores of several of the Kering Group's luxury brands. The Group has offices and operations in Europe, the United States, Japan, China and Hong Kong and delivers to more than 100 countries worldwide. Listed on the Milan stock exchange, the Group posted consolidated net revenues of € 524 million in 2014. For further information: www.yooxgroup.com
Cautionary Statement Regarding YOOX S.p.A.
With reference to what has appeared in the press, Compagnie Financière Richemont SA clarifies that discussions are currently underway with YOOX S.p.A. regarding a potential business combination between YOOX S.p.A. and The Net-A-Porter Group Ltd.
The Company will update the market as appropriate in due course and cannot comment further at this stage.
Cautionary statement regarding forward-looking statements
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Words such as ‘may’, ‘should’, ‘estimate’, ‘project’, ‘plan’, ‘believe’, ‘expect’, ‘anticipate’, ‘intend’, ‘potential’, ‘goal’, ‘strategy’, ‘target’, ‘will’, ‘seek’ and similar expressions may identify forward-looking statements. 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.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc and Net-A-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Change to Board of Directors
Compagnie Financière Richemont SA announces that Dr Frederick Mostert will resign from the Board of Directors and the Group Management Committee with effect from 31 December 2014.
Dr Mostert joined the Group in 1990 and was appointed to its Group Management Committee in 1994. He has served as a member of the Board of Directors since 2010. Dr Mostert, Chief Legal Counsel, will continue to serve the Company as an employee until retirement in 2015.
Thereafter, he will continue to serve the Group as a consultant in intellectual property matters.
The Board of Directors would like to thank Dr Mostert for his contributions to the Group since 1990.
Mr Johann Rupert, Chairman of the Board, said
“Dr Frederick Mostert has informed me of his desire to extend his teaching commitments as a Law Professor and specialise in copyright and intellectual property rights more generally. Accordingly, he wishes to retire from the Company in 2015 and will retire from the Board of Compagnie Financière Richemont SA and from the Group Management Committee at the end of 2014.
The Company has benefited greatly from Frederick Mostert’s service with us for the past 25 years and we are extremely grateful to him for the contribution he has made. Richemont will be able to continue to benefit on an advisory and consultancy basis from Dr Mostert’s internationally acknowledged expertise in intellectual property law.”
Further details regarding the Board of Directors may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/board-of-cfr-sa.html
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; and Other, being Alfred Dunhill, Chloé, Lancel, Montblanc and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Interim Report 2014 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2014. The report may be downloaded from the Richemont website at https://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement issued on 7 November 2014 as well as the unaudited condensed interim consolidated financial statements posted on the Group’s website the same day.
Copies of the printed interim report will be mailed in due course to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them.
In Switzerland, the report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at https://www.richemont.com/index.php?option=com_requestreport
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2017) or by contacting Computershare at ecomms@computershare.co.za
______________________________________
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont reports five months sales at Annual General Meeting
| Change at constant exchange rates versus prior year | Change at actual exchange rates versus prior year | |
Sales by region |
||
| Europe/Middle-East | + 6 % | + 6 % |
| Asia-Pacific | + 0 % | - 2 % |
| Americas | + 12 % | + 7 % |
| Japan | - 8 % | - 14 % |
Sales by distribution channel |
||
| Retail | + 5 % | + 3 % |
| Wholesale | + 2 % | - 1 % |
Sales by business area |
||
| Jewellery Maisons | + 2 % | + 0 % |
| Specialist Watchmakers | + 4 % | + 2 % |
| Other | + 6 % | + 5 % |
Total |
+ 4 % | + 1 % |
Ahead of its Annual General Meeting to be held today in Geneva, Richemont announces that its sales for the five months ended 31 August 2014 increased by 4% at constant exchange rates. At actual exchange rates, sales rose by 1%, negatively impacted by the weakening of the US dollar and the yen against the euro during the period.
The following comments refer to changes at constant exchange rates.
Sales growth was subdued overall, with double-digit increases in the Middle East and Americas largely offset by low growth in Europe and decreases in Asia-Pacific and Japan.
European and Middle-Eastern sales continued to benefit from tourism. In the Asia-Pacific region, sales were lower in Hong Kong, Macau and mainland China, offsetting positive developments in other markets. In mainland China, retail sales grew while the rate of decline in wholesale sales softened. Sales growth in the Americas remained strong. In Japan, prudent consumer sentiment and a surge in purchases in March 2014 ahead of a sales tax increase combined to dampen sales in the April to August period, as expected.
Retail sales growth continued to outperform wholesale sales, albeit at a lower level than a year ago. Of particular note were the retail performances at Van Cleef & Arpels and at Net-A-Porter.
By business area, the performance reflected the comments above for sales by region and channel. Cartier jewellery continued to outperform watch sales, which have suffered from weak demand and destocking, particularly in Asia-Pacific. As announced last May, the Montblanc Maison, which was previously considered a separate reporting segment, is now aggregated and disclosed in Other. The prior year comparatives have been restated to reflect this change.
Richemont’s interim results for the six-month period to 30 September 2014 will be released on 7 November 2014.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in three areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2014, Richemont reported sales of € 10 649 million. Operating profit for that year amounted to € 2 419 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual General Meeting 2014
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2014.
A dividend of CHF 1.400 per share will be paid on the listed 'A' registered shares and a dividend of CHF 0.140 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 24 September 2014 against presentation of coupon number 17, free of charges but subject to Swiss withholding tax at 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were also approved by the shareholders by an overwhelming majority.
During the meeting, the outgoing Chairman, Mr Yves-Andre Istel, welcomed the shareholders’ appointment of Mr Johann Rupert as Chairman of the Board. In light of the pending change of Chairman, during a meeting held the previous day the Board had appointed both Mr Istel and Mr Malherbe to serve as Deputy Chairmen.
Also during the meeting, the shareholders warmly thanked Dr Cologni, who was not standing for re-election, for his 45-years of service to Richemont and its predecessors.
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Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual Report 2014 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2014. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
Regarding the year under review, the annual report reflects the information contained in the Richemont results announcement, which was issued on 15 May 2014, as well as the audited Group and Company financial statements which were posted on the Group’s website the same day.
The report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them on 20 June 2014. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/about-richemont/contact.html
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001, (PO Box 61051, Marshalltown 2107).
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Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont announces the end of the share buy-back programme initiated in May 2012 and the launch of a new programme
Richemont’s two-year share buy-back programme announced on 16 May 2012 ended today. Under the programme, the Company repurchased a total of 6 980 620 ‘A’ shares, representing 1.2 % of the capital and 0.7 % of the voting rights of Compagnie Financière Richemont SA. Richemont’s share purchase history can be found on the Company’s website at:
http://www.richemont.com/investor-relations/share-buy-back-information.html
In addition, Richemont announces a new programme to buy-back up to 10 million Richemont ‘A’ shares through the market over the next three years, representing 1.7 % of the capital and 1.0 % of the voting rights of Compagnie Financière Richemont SA.
Purchases may be effected through ‘A’ share purchases on SIX Swiss Exchange at prevailing market prices. The ‘A’ shares acquired will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. The ‘A’ shares to be acquired will be held in treasury to hedge awards to executives under the Group’s stock option plan.
Richemont currently holds 11.3 million ‘A’ shares, representing 2.0 % of the capital and 1.1 % of the voting rights of the Company, in treasury as a consequence of previous buy-back programmes, which have also been linked to the Group’s stock option plan.
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Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
High tech for precision mechanics – Richemont and EPFL to create a new academic chair
Richemont and EPFL announce the creation of an academic chair in “Multi-scale Manufacturing Technologies.” The future professor will work at EPFL’s Neuchâtel Microcity Campus, home to its Institute of Microengineering.
The continuous optimisation of manufacturing processes for mechanical components is one of the key success factors of the Swiss watchmaking industry. While traditional machining and stamping processes will continue to play an important role, emerging technologies such as laser machining, 3D printing and plasma etching are pushing the current limits to new heights of quality and performance. In order to capture this outstanding potential, Richemont and EPFL are creating an academic chair in “Multi-scale Manufacturing Technologies”. Richemont, a key Swiss player in the watchmaking and jewellery industry, will sponsor the activities of the future professor in EPFL’s Institute of Microengineering. The recruitment process has already started.
Microengineering, and the watchmaking sector in particular, are essential components of the industrial landscape in Western Switzerland. EPFL’s stake in the Microcity Campus in Neuchâtel is a clear sign of its ambition to support innovation and academic research in this field. Richemont, with its prestigious Maisons, which include Cartier, Van Cleef & Arpels, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis, Vacheron Constantin and Montblanc, is a leading employer with 10,000 employees in Switzerland and a total of 30,000 around the world. This new step is a self-evident continuation of the collaboration between the two institutions.
“The creation of this new chair with Richemont is totally in line with our overall strategy for the region,” explains EPFL's President, Patrick Aebischer. “This collaboration will allow us to develop new technologies and stimulate innovation for a key economic sector in Neuchâtel.”
Multi-scale manufacturing combines disruptive technologies to produce high quality parts on any scale and at any level of precision. The integration of these new technologies in production will reinforce Switzerland’s leadership position in high-precision industries and high-end watchmaking. In particular, it will improve the performance and quality of watches, allowing for the use of new materials and enabling the fabrication of the most complex components.
“We are faced with a demanding and sophisticated client base, increasing competition and continuous technological progress. Innovation is a necessity for a major global company like Richemont,” says Co-CEO of Richemont, Richard Lepeu. “These new technologies open a wide range of technical possibilities to respond to future industrial requirements.”
By investing in this high-potential sector, Richemont and EPFL confirm their determination to play a leading role in innovation. The future professor, who will start at the Institute of Microengineering in 2015, will create an integrated platform of the very latest manufacturing technologies for the benefit of the high precision industry.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
About Ecole polytechnique fédérale de Lausanne (EPFL)
EPFL is Europe’s most cosmopolitan technical university. It receives students, professors and staff from over 120 nationalities. With both a Swiss and international calling, it is therefore guided by a constant wish to open up; its missions of teaching, research and partnership impact various circles: universities and engineering schools, developing and emerging countries, secondary schools and gymnasiums, industry and economy, political circles and the general public.
Change to Board of Directors
Compagnie Financière Richemont SA announces that Dr Franco Cologni has informed us that he does not wish to stand for re-election to the Board of Directors at the Company’s next Annual General Meeting (‘AGM’), to be held on 17 September 2014.
In advance of that date, the Board of Directors would like to thank Dr Cologni for his immeasurable contributions to the Group and its predecessor companies since 1969, when he joined Cartier. Following the AGM, Dr Cologni will continue to serve the Group as a consultant and will continue to support the Maisons in a range of creativity- and craftsmanship-related matters.
Mr Yves-André Istel, Chairman of the Board, said
“For over 40 years, Franco has not only shared with Group companies his dedication to the arts and to their artisanal skills, he has also shared his deep understanding of the anima of artistic and luxury objects. He has always been our guide in these fields.
We are fortunate that Richemont’s Maisons will continue to benefit from his enthusiasm and experience, his insight and his sense of style for many years to come as an advisor.”
Further details regarding the Board of Directors may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/board-of-cfr-sa.html
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to Group Management Committee
Richemont announces the following changes to its Group Management Committee.
Mr Albert Kaufmann, General Counsel, will retire from Richemont’s operational business and from the Group Management Committee on 31 March 2014.
On behalf of the Group, Richemont’s Board of Directors would like to thank Mr Kaufmann for his immense contribution since 1974. During his 40-year tenure, which began at Cartier, Mr Kaufmann led the development of the legal department and affairs for Richemont’s luxury goods businesses.
Richemont’s Board of Directors also announces two appointments to the Group Management Committee, effective from 1 April 2014: Mr Nicolas Bos, Chief Executive Officer of Van Cleef & Arpels; and Mr Daniel Riedo, Chief Executive Officer of Jaeger-LeCoultre.
Further details regarding the Group Management Committee may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/group-management-committee.html
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Interim Report 2013 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2013. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement, which was issued on 8 November 2013, as well as the unaudited condensed interim consolidated financial statements, which were posted on the Group’s website the same day. Only the printed interim report is definitive.
Copies of the printed interim report will be mailed on 26 November 2013 to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them.
In Switzerland, the report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/index.php?option=com_requestreport
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2017) or by contacting Computershare at ecomms@computershare.co.za
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Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Net-A-Porter group not for sale
Richemont has a long-standing policy of not commenting on market rumours. Exceptionally in this case, Richemont wishes to make it clear that The Net-A-Porter Group is not for sale.
Richemont advises that it has no further comment.
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont reports five months sales at Annual General Meeting
| Change at constant exchange rates versus prior year | Change at actual exchange rates versus prior year | |
Sales by region |
||
| Europe/Middle-East | + 10 % | + 8 % |
| Asia-Pacific | + 4 % | + 1 % |
| Americas | + 17 % | + 13 % |
| Japan | + 17 % | - 8 % |
Sales by distribution channel |
||
| Retail | + 11 % | + 5 % |
| Wholesale | + 7 % | + 3 % |
Sales by business area |
||
| Jewellery Maisons | + 8 % | + 2 % |
| Specialist Watchmakers | + 13 % | + 9 % |
| Montblanc Maison | 0 % | - 3 % |
| Other | + 12 % | + 6 % |
Total |
+ 9 % | + 4 % |
Ahead of its Annual General Meeting to be held today in Geneva, Richemont announces that its sales for the five months ended 31 August 2013 increased by 9 % at constant exchange rates. At actual exchange rates, sales rose by 4 %, negatively impacted by the weakening of the US dollar and the yen against the euro.
The following comments refer to changes at constant exchange rates.
Sales growth was satisfactory across all regions in view of demanding comparatives in Europe, the Middle-East and Asia-Pacific. European and Middle-Eastern sales continued to benefit from visitors in major tourist destinations. Asia-Pacific was led by good growth in Hong Kong and Macau, offset by lower sales in mainland China, largely reflecting a prudent consumer sentiment after several years of exceptional expansion. Sales growth in the Americas was strong, primarily achieved through the sustained momentum of jewellery sales. The acquisition of Peter Millar in October 2012 also assisted the performance in the Americas. Sales growth in Japan was robust, benefiting from strong domestic consumption.
Retail sales growth continues to outperform wholesale sales, reflecting a good performance in the Maisons’ existing boutiques as well as the opening of new ones, primarily in Europe, Middle-East and Asia-Pacific.
The Jewellery Maisons and Specialist Watchmakers performed well in an uncertain economic environment. Montblanc’s sales were flat, the Maison being less exposed to tourist purchases than many of the Group’s other businesses. Within ‘Other’ sales, Net-a-Porter reported double-digit growth.
Richemont’s interim results for the six-month period to 30 September 2013 will be released on 8 November 2013.
Disclaimer
The foregoing financial information is unaudited.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’ which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2013, Richemont reported sales of € 10 150 million. Operating profit for that year amounted to € 2 426 million.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual General Meeting 2013
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2013.
A dividend of CHF 1.000 per share will be paid on the listed 'A' bearer shares and a dividend of CHF 0.100 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 19 September 2013 against presentation of coupon number 16, free of charges but subject to Swiss withholding tax at 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
At the meeting, the Chairman, Mr Johann Rupert, indicated that in light of his forthcoming sabbatical year, he would not stand for re-election to the Board for the year ahead. Mr Yves-Andre Istel will assume the role of Chairman during Mr Rupert's absence and Mr Josua Malherbe will assume the role of Deputy Chairman.
All other matters on the agenda were approved by the shareholders.
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Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to Board of Directors
Compagnie Financière Richemont SA announces that Maître Dominique Rochat will not be standing for re-election to the Board of Directors at the Company’s next Annual General Meeting (‘AGM’) for health reasons. The Board of Directors would like to thank Maître Rochat for his valuable contributions to the Group since his appointment in 2010 and wishes him a return to good health.
Compagnie Financière Richemont SA also announces the nomination of Maître Jean-Blaise Eckert for election to the Board of Directors at the next AGM, to be held on 12 September 2013. His appointment is subject to the approval of the shareholders at that meeting. Maître Eckert will serve as a Non-Executive Director and become a member of the Board’s Audit and Nominations Committees.
Maître Eckert has been a practising lawyer since 1991 and a Partner of Lenz & Staehelin since 1999, advising on national and international corporate, commercial and tax law. He serves on the Board of several Swiss companies, including Ladurée International SA and UL (Underwriters Laboratories) AG, and on the Board of several not-for-profit organisations, including Fondation pour la Musique et la Culture, Genève. He teaches in the Master programmes of the University of Geneva and of Lausanne. Maître Eckert is also a member of a number of Swiss and international professional organisations.
Further details regarding the Board of Directors may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/board-of-cfr-sa.html
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Annual Report 2013 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2013. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
Regarding the year under review, the annual report reflects the information contained in the Richemont results announcement, which was issued on 16 May 2013, as well as the audited Group and Company financial statements which were posted on the Group’s website the same day.
The report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them on 19 June 2013. Only the printed report is definitive. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/about-richemont/contact.html
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001, (PO Box 61051, Marshalltown 2107).
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Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to senior management
Compagnie Financière Richemont SA announces the resignation of Marty Wikstrom from her role as Chief Executive Officer of Richemont Fashion and Accessories with immediate effect. She will continue to serve as a Non-Executive Director on the Board of Compagnie Financière Richemont SA until the shareholders meeting to be held on 12 September 2013.
Ms Wikstrom was first appointed to the Board in 2005 and served as a Non-Executive Director until 2009. In 2009, she became an Executive Director upon her appointment as Chief Executive Officer of Richemont Fashion and Accessories. In that role, she has overseen the strategic development of six of Richemont’s Maisons, including Alfred Dunhill, Azzedine Alaїa, Chloé and Lancel. Since 2009, Ms Wikstrom has also served as a member of the Chairman’s Committee and the Group Management Committee. She steps down from those Committees.
The Board of Directors would like to thank Ms Wikstrom for her many contributions to the Group, transitioning the fashion and accessories businesses and positioning them for further prosperous growth.
Further details regarding the Board of Directors may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/board-of-cfr-sa.html
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Proposed move to registered share capital
The Board of Directors of Compagnie Financière Richemont SA announces its intention to propose amendments to the Company’s Articles of Incorporation at the annual general meeting to be held on Thursday, 12 September 2013 in Geneva (‘2013 AGM’). The amendment will enable the Company to bring its ‘A’ bearer shares, which are traded on SIX Swiss Exchange, on to a share register. Accordingly, the Richemont ‘A’ bearer shares shall be defined thereafter as Richemont ‘A’ registered shares.
The proposal brings Richemont further into line with other leading Swiss companies, reflecting the move away from bearer shares across Europe. The proposed change also seeks to relieve those bearer shareholders who wish to exercise their right to vote at general meetings of the ‘share blocking’ constraint applicable in the days immediately preceding such meetings. Consequently, trading in the Company’s shares will be facilitated.
The Company’s share capital comprises 522 million ‘A’ bearer shares and 522 million Richemont ‘B’ registered shares. The proposal would see the A’ bearer shares, which are traded on SIX Swiss Exchange, transformed into ‘A’ registered shares. No changes are proposed in respect of the ‘B’ registered shares.
The economic rights attaching to the ‘A’ bearer shares will not be changed. ‘A’ registered shares will enjoy all of the rights currently conferred upon the ‘A’ bearer shares, including dividend and voting rights.
The envisaged transformation of the Company’s bearer shares into registered shares is not expected to involve the publication of a listing prospectus as the transformation will not involve a share capital increase. However, the registered shares will be assigned a new International Security Identification Number (‘ISIN’) and a new Swiss security number (‘Valorennummer’). ‘CFR’, the current ‘ticker’ of the ‘A’ bearer shares, will be preserved.
In addition to the listing of ‘A’ shares on SIX Swiss Exchange, Richemont has a secondary listing of registered South African Depository Receipts (‘DRs’) in Johannesburg on the exchange operated by JSE Limited. DRs trade in the ratio of ten DRs to each Richemont ‘A’ share. Neither the amendment to the Company’s Articles of Incorporation, nor the envisaged transformation of the ‘A’ shares to registered form and the creation of a share register in Switzerland is expected to have any economic impact on the DRs.
The proposed change to the Company’s Articles of Incorporation will be voted upon at the 2013 AGM. In accordance with Swiss company law, a resolution to change the Company’s Articles requires the approval of two thirds of the shares and an absolute majority of the nominal share capital represented at a general meeting of shareholders. Subject to the proposed changes being approved, Richemont’s bearer shares will be replaced by registered shares and a record date be established for voting purposes at future general meetings.
The new registered shares are expected to be traded for the first time on SIX Swiss Exchange on Tuesday 24 September 2013. The change will be effective in the custody accounts of shareholders three trading days after the first trading day, i.e. on Friday, 27 September 2013.
Further details regarding Richemont’s publicly traded ‘A’ shares may be found on the Group’s website at: http://www.richemont.com/investor-relations/share-history.html
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to Group Management Committee
Richemont announces the following changes to its Group Management Committee.
Mr Lutz Bethge, currently Chief Executive Officer of Montblanc International, will be appointed as non-executive Chairman and Head of Supervisory Board of Montblanc. In this capacity, Mr Bethge will represent the Maison externally and will be an advisor to the Maison on strategic matters. He will step down from operational business and from the Group Management Committee on 30 June 2013.
On behalf of the Group, Richemont’s Board of Directors would like to thank Mr Bethge for his immense contribution to the development of Montblanc from a traditional writing instrument manufacturer to a strong luxury Maison. During his 23-year tenure in various roles, the Maison has been recognised as a legitimate player in the watch business, providing continued and significant growth. The Board wishes Mr Bethge every success in his new role.
Richemont’s Board of Directors is also pleased to announce the appointment of Mr Jérôme Lambert, currently Chief Executive Officer of Jaeger-LeCoultre, as Chief Executive Officer of Montblanc. Mr Lambert will remain a member of the Group Management Committee. Montblanc’s new management organisation will be effective from 1 July 2013.
Mr Daniel Riedo, currently Industrial Director of Jaeger-LeCoultre, will succeed Mr Lambert as Chief Executive Officer of Jaeger-LeCoultre.
Further details regarding the Group Management Committee may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/group-management-committee.html
Richemont is currently in a ‘closed period’. The Group’s results for the year ended 31 March will be announced on 16 May 2013.
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Favourable exchange rates at 31 March 2013 indicate a likely increase in net profit of approximately 30 % compared to the prior year
SIX Swiss Exchange requires that issuers make an announcement without delay where the foreseeable profit or loss for a given period is expected to deviate significantly from the profit or loss achieved in the prior-year period. Both significant falls and increases in the anticipated profit or loss require the publication of an ad hoc notice to the market. In accordance with these requirements Richemont makes the following announcement:
Trading for the year to March 2013 showed sales rising 14 % on a reported basis and 9 % on a constant currency basis against the comparative period. On this basis, Richemont’s operating profit for the year to 31 March 2013 is likely to show an increase of approximately 18 % compared to the previous year. Net profit for the year is likely to increase by approximately 30% compared to the previous year.
Disclaimer
The foregoing financial information is unaudited.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Cautionary statement regarding forward-looking statements
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Words such as ‘may’, ‘should’, ‘estimate’, ‘project’, ‘plan’, ‘believe’, ‘expect’, ‘anticipate’, ‘intend’, ‘potential’, ‘goal’, ‘strategy’, ‘target’, ‘will’, ‘seek’ and similar expressions may identify forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forwardlooking statements as a result of a number of risks and uncertainties, many of which are outside the Group’s control.
Changes to senior management
Richemont announces the retirement of Ms Pilar Boxford, effective 1 April 2013. She will step down from the Group Management Committee at that time. Reflecting the changed role of the Group Management Committee announced in November 2012, Ms Boxford will not be replaced on the Committee.
Ms Boxford joined Cartier Paris in 1979 as Product Manager for the launch of Cartier Parfums and subsequently became responsible for Cartier’s worldwide public relations strategy. Five years later, she transferred to Cartier London as Communications Director. In 2004, Ms Boxford was appointed Group Public Relations Director and joined the Group Management Committee. Following her retirement, she will continue as a consultant, supporting the Maisons on key public relations matters.
Mr Johann Rupert, Richemont Executive Chairman and Chief Executive Officer, said
“After 33 years, Pilar's knowledge and her contribution to Cartier and our other Maisons’ unique position are demonstrated by their worldwide reputations.”
Further details regarding the Group Management Committee may be found on the Group’s website at: http://www.richemont.com/about-richemont/corporate-governance/group-management-committee.html
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Board of Directors
Richemont announces the nomination of Mr Bernard Fornas to the Board of Directors of Compagnie Financière Richemont SA.
Mr Fornas is currently Joint Deputy Chief Executive Officer of Richemont and is a member of its Group Management Committee. Mr Fornas was Chief Executive of Cartier from 2002 to 2012 and first joined that Maison in 1994.
With effect from 1 April 2013, Mr Fornas will become Co-Chief Executive Officer of Richemont. Mr Richard Lepeu will also become Co-Chief Executive Officer of Richemont from that date.
Mr Fornas has been nominated for election to the Board of Directors at the Company’s Annual General Meeting, to be held on 12 September 2013. His appointment is subject to the approval of the shareholders at that meeting. Mr Fornas will serve as an executive director.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other businesses, which include Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties. For more information, please visit www.richemont.com.
Richemont Interim Report 2012 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2012. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
The interim report reflects the information contained in the Richemont results announcement, which was issued on 9 November 2012, as well as the unaudited condensed consolidated financial statements, which were posted on the Group’s website the same day. Only the printed interim report is definitive.
Copies of the printed interim report will be mailed on 27 November 2012 to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them. Copies may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/index.php?option=com_requestreport
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Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Changes to senior management
The Board of Compagnie Financière Richemont SA is pleased to announce the following appointments.
As announced on 26 March 2012, Mr Stanislas de Quercize will succeed Mr Bernard Fornas as Chief Executive Officer of Cartier with effect from 1 January 2013. From the same date, Mr Fornas and Mr Richard Lepeu, currently Deputy Chief Executive Officer, will be appointed as Joint Deputy Chief Executive Officers, reporting to Mr Johann Rupert, Executive Chairman and Chief Executive Officer.
Mr Rupert returned to the role of Richemont Chief Executive Officer when Mr Norbert Platt took early retirement due to ill health in 2010. Mr Rupert will step down from that role on 31 March 2013.
From 1 April 2013, Mr Fornas and Mr Lepeu will become Joint Chief Executive Officers. Mr Fornas’ specific role will be to oversee Richemont’s operating companies, or ‘Maisons’. Mr Lepeu will continue to oversee Richemont’s central functions. Mr Fornas and Mr Lepeu together with Mr Gary Saage, Chief Financial Officer, will form a Senior Executive Committee.
In addition, the Board approved certain changes to Richemont’s Group Management Committee.
The following executives will join the Group Management Committee with immediate effect: Mr Lutz Bethge, Chief Executive Officer of Montblanc; Mr Hans-Peter Bichelmeier, Group Operations Director; Mr Stanislas de Quercize, currently Chief Executive Officer of Van Cleef & Arpels and designated Chief Executive Officer of Cartier; Mr Georges Kern, Chief Executive Officer of IWC Schaffhausen; Mr Jérôme Lambert, Chief Executive Officer of Jaeger-LeCoultre; and Mr Philippe Léopold-Metzger, Chief Executive Officer of Piaget.
The following executives will retain their responsibilities but, reflecting the changed role of the Group Management Committee, will resign from that Committee by the end of the current financial year: Mr Giampiero Bodino, Group Art Director; Mr Alan Grieve, Director of Corporate Affairs; Mr Eloy Michotte, Corporate Finance Director; and Mr Jan Rupert, Executive Director.
Further details regarding the current Group Management Committee may be found in section 4 of the Corporate Governance Report published in Richemont’s Annual Report and Accounts 2012, www.richemont.com/investor-relations/reports.html
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont acquires Varin-Etampage and Varinor ('VVSA')
Richemont, the Swiss luxury goods group, is pleased to announce that it has acquired 100 % of the capital of VVSA in a private transaction with the shareholder group.
Based in Delémont since 1962, VVSA is a high-end manufacturer of stamped exterior components for watches, gold refiner and producer of semi-finished precious metal products destined for the watch and jewellery industry.
A historical partner of Richemont's Maisons and Manufactures, VVSA and its 250 employees will reinforce the Group's industrial capabilities via their established technical know-how and state-of-the-art equipment.
The current Directors of VVSA, Mr Damien Donzé, Mr Alain Munier and Mr Béat Chételat, have confirmed their commitment to manage the company, which will continue to serve its existing clients.
The transaction will have no material impact on Richemont’s consolidated net assets and is not expected to have any impact on the Group’s profitability for the year ending 31 March 2013.
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About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other businesses, which include Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties. For more information, please visit www.richemont.com.
Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont to acquire Peter Millar LLC
GENEVA, SWITZERLAND, CHICAGO, IL, and RALEIGH, NC – September 21, 2012 – Compagnie Financière Richemont SA (“Richemont”) and Winona Capital Management LLC (“Winona Capital”) are pleased to announce that an agreement has been reached whereby Richemont will acquire Peter Millar LLC (“Peter Millar”), a US-based, international luxury apparel business, in a private transaction.
The acquisition by Richemont will position Peter Millar for its next stage of development and growth. “We are incredibly fortunate to have partnered with Winona Capital. Together we have developed and built the Peter Millar brand, expanded the product range, and grew sales and distribution,” said Scott Mahoney, Chief Executive Officer of Peter Millar. “Now partnering with Richemont represents a wonderful opportunity for Peter Millar to continue to build the brand globally under Richemont’s stewardship. We look forward to working with Richemont and the association with their prestigious family of brands.”
Luke Reese, Managing Director of Winona Capital, commented, “It has been Winona Capital’s pleasure to work with Scott Mahoney, Chris Knott, and the rest of the Peter Millar team over the last few years to help build such a great company. We are thrilled for Peter Millar to be acquired by Richemont, the finest collection of luxury brands in the world.”
The transaction is expected to close in October 2012 and will have no material impact on Richemont’s consolidated net assets or operating result for the year ending March 31, 2013. Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index (“SMI”) of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Robert W. Baird & Co. acted as advisor to Peter Millar in connection with the transaction.
About Peter Millar
Founded in 2001, the Peter Millar line embraces timeless elegance using only the highest quality materials. With a studio and design center in Raleigh, North Carolina as well as business operations in Durham, North Carolina, Peter Millar is one of today’s fastest growing and most sought after brands in the lifestyle apparel market. Global distribution includes North America, Europe, Asia, Australia and the South Pacific. For more information, please visit www.petermillar.com.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other businesses, which include Alfred Dunhill, Chloé and Lancel as well as other smaller Maisons and watch component manufacturing activities for third parties. For more information, please visit www.richemont.com.
About Winona Capital
Winona Capital is a leading investor in consumer and retail brands in the lower middle market. Winona focuses on consumer businesses and brands where Winona sees both passionate executives with a shared focus on growth and an opportunity for Winona to apply its expertise to improve operating performance, create value, and provide investors with superior returns. For more information, please visit www.winonacapital.com or contact Winona Capital at +1 312-334-8800.
Richemont reports five months sales at Annual General Meeting
| Change at constant exchange rates versus prior year | Change at actual exchange rates versus prior year | |
Sales by region |
||
| Europe | + 19 % | + 23 % |
| Asia-Pacific | + 12 % | + 27 % |
| Americas | + 6 % | + 19 % |
| Japan | + 4 % | + 19 % |
Sales by distribution channel |
||
Retail |
+ 15 % | + 27 % |
| Wholesale | + 10 % | + 20 % |
Sales by business area |
||
| Jewellery Maisons | + 12 % | + 23 % |
| Specialist Watchmakers | + 16 % | + 26 % |
| Montblanc Maison | + 4 % | + 12 % |
| Other | + 15 % | + 26 % |
Total |
+ 13 % | + 23 % |
Ahead of its Annual General Meeting to be held later today in Geneva, Richemont announces that its sales for the five months ended 31 August 2012 increased by 23 % at actual exchange rates. At constant exchange rates, sales increased by 13 %.
Sales analysis shows continued positive momentum across regions. Europe was strong, particularly in the retail channel in major tourist destinations. Demand in the Asia-Pacific region remained solid after two years of exceptionally high growth. Sales growth in the Americas slowed to 6 % on a constant currency basis, partly due to the timing of exceptional sales in the comparative period. Japan showed resilience.
Retail sales growth was again higher than wholesale sales, reflecting a good performance in the Maisons’ existing boutiques as well as the opening of new boutiques, notably in the Asia-Pacific region.
All business areas enjoyed double-digit growth in sales, with the exception of the Montblanc Maison which did not benefit as greatly from tourist destinations.
Sales growth over the five-month period to August was 13 % at constant exchange rates or 23 % at actual rates. The weakening of the euro against the dollar, in particular, had a positive impact on the Group’s reported sales.
Mr Johann Rupert, Executive Chairman and Group Chief Executive Officer, will comment at today’s meeting as follows:
“Underlying sales in the five month period advanced by 13 %. This average includes a declining month-on-month rate of growth. Nevertheless, the average represents a strong performance when measured against the 35 % growth seen in the comparative period last year.
We can confirm that operating profit for the six months should be some 20 to 40 % higher than last year, as was anticipated in the announcement made on 6 August.
The increase in net profit for the six-month period is also likely to be in that range, notwithstanding the impact of a number of factors, including mark-to-market adjustments in terms of the Group’s foreign exchange hedging programme. Such adjustments will only be determined at the end of September.
The prevailing economic uncertainties, the moderation in sales growth since May and the very strong basis of comparison do not prevent us from maintaining our ambitious investment programme. Indeed we remain confident in the long term potential of our Maisons.”
Richemont’s interim results for the six-month period to 30 September 2012 will be released on 9 November 2012.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and NET-A-PORTER.COM as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2012, Richemont reported sales of € 8 867 million. Operating profit for the year amounted to € 2 040 million.
Richemont Annual General Meeting 2012
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2012.
A dividend of CHF 0.550 per share will be paid on the listed 'A' bearer shares and a dividend of CHF 0.055 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 13 September 2012 against presentation of coupon number 15, free of charges but subject to Swiss withholding tax at 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were approved by the shareholders.
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Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Strong trading indicates likely increase in operating and net profit for first half year of between 20% and 40% against the comparative prior period
SIX Swiss Exchange requires that issuers make an announcement without delay where the foreseeable profit or loss for a given period is expected to deviate significantly from the profit or loss achieved in the prior-year period. Both significant falls and increases in the anticipated profit or loss require the publication of an ad hoc notice to the market. In accordance with these requirements Richemont makes the following announcement:
Trading for the four months ended July 2012 showed sales rising 24 % on a reported basis and 13 % on a constant currency basis against the comparative period. On this basis, Richemont’s operating profit for the six months ending 30 September 2012 is likely to show an increase of between 20 % and 40 % compared to the first six months of the last financial year. Net profit for the same period may increase by between 20 % and 40 %.
Many factors driving these results are uncertain and beyond the Group’s control and may therefore lead to actual levels of profit growth for the six month period below or above the ranges indicated. Those uncertain factors include the level of trading during August and September 2012 and the impact of exchange rate movements on the Group’s results. Specifically, exchange rate movements may significantly impact net financial income / expense and therefore net profit for the period.
Richemont Annual Report 2012 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2012. The report may be downloaded from the Richemont website at http://www.richemont.com/investor-relations/reports.html
Regarding the year under review, the annual report reflects the information contained in the Richemont results announcement, which was issued on 16 May 2012, as well as the Group and Company financial statements which were posted on the Group’s website the same day.
The report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them. The report may be obtained from the Company’s registered office at the address below or by contacting the Company via the website at http://www.richemont.com/group/contact.html
In South Africa, the report may be obtained directly from the Depository Agent at the following address: Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg 2001, (PO Box 61051, Marshalltown 2107).
Richemont announces share buy-back programme
Richemont announces a programme to buy-back up to 10 million Richemont ‘A’ shares through the market over the next two years, representing 1.7 % of the capital and 1.0 % of the voting rights of Compagnie Financière Richemont SA.
Purchases may be effected through share purchases on SIX Swiss Exchange and the purchase of depository receipts on the Johannesburg market at prevailing market prices or through the exercise of over-the-counter call options. The ‘A’ shares acquired will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. The ‘A’ shares to be acquired will be held in treasury to hedge awards to executives under the Group’s stock option plan.
Richemont currently holds 24.3 million ‘A’ shares, representing 4.2 % of the capital and 2.3 % of the voting rights of the Company, in treasury as a consequence of previous buy-back programmes, which have also been linked to the Group’s stock option plan. In addition, Richemont holds over-the-counter call options to acquire a further 4.2 million ‘A’ shares, representing 0.7 % of the capital and 0.4 % of the voting rights of the Company.
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Further Information
Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Campus Genevois de Haute Horlogerie
Inspired by its unique watchmaking heritage in Geneva, willing to ensure the sustainability of the profession, and motivated by the increasing demand for exceptional timekeepers, Richemont is launching a large and innovative project: the « Campus Genevois de Haute Horlogerie ».
The Group reinforces its roots in Geneva and its involvement in the local economy with an investment of over 100 million Swiss francs. The project will result in the creation of a 30,000 sqm integrated work site in Meyrin, built in accordance with ambitious environmental and socially responsible standards. The total Campus population should reach 900 by 2020, with 400 new staff being hired between now and then.
The Campus will bring together several major high-end Geneva watchmakers in their own premises: the headquarters of the Maison Roger Dubuis, the watchmaking workshop of the Maison Van Cleef & Arpels, production workshops of Vacheron Constantin and the « Manufacture Stern, Genève 1898 ». Stern Création – manufacturer of high-end dials – and the Manufacture Genevoise de Haute Horlogerie – specialised in components of watch movements, 100% Hallmark of Geneva – will join forces to enhance the technicality and creativity of their products.
At the heart of the Campus, a brand new concept will come to life to develop the capabilities of our Maisons: the Learning and Apprenticeship Centre for Haute Horlogerie. With 45 seats available from the start and the ability to deliver official certifications, the Centre will ensure the sustainability of the watchmaking profession and of traditional craftsmanship, the recognition of our Maisons' legacy, and the development of the Group's employees.
In addition, the Campus will host a Research Centre for Watchmaking, with the mission to develop new technologies to sustain the impressive level of innovation and quality of our Maisons. Richemont will invest approximately 60 million Swiss francs on training and research over ten years.
While each entity will preserve its independence and autonomy, the objective of the Campus is to promote interaction and exchange, and enable the transformation of ideas into extraordinary products, such as those bearing the prestigious Hallmark of Geneva.
Richemont would like to thank the State of Geneva, and more specifically the Department of Public Education, for its active participation in the creation of the Learning and Apprenticeship Centre for Haute Horlogerie, due to open in autumn 2012. The Learning Centre is the cornerstone of the Campus which will be inaugurated in autumn 2014.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Lancel, Net-a-Porter and Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
Senior Executive appointment at Cartier
Richemont is pleased to announce the appointment, by the end of this calendar year, of Mr Stanislas de Quercize as the Chief Executive Officer of Cartier to succeed Mr Bernard Fornas, who reached the age of 65 earlier this month.
Mr de Quercize is currently Chief Executive Officer of Van Cleef & Arpels and will continue in that role until he assumes his new position. Since 1989, he has had an extensive career within the Group, having worked with Montblanc, Alfred Dunhill, Cartier – where he rose to be President of Cartier Inc. in the United States – and, since 2005, Van Cleef & Arpels.
Mr de Quercize will be succeeded as Chief Executive Officer of Van Cleef & Arpels by Mr Nicolas Bos, currently Creative Director of Van Cleef & Arpels and Chief Executive of Van Cleef & Arpels North America.
Johann Rupert, Executive Chairman and Chief Executive Officer of Richemont, said:
“Over the last decade, Bernard Fornas has led Cartier in an entrepreneurial and highly professional manner. He has been responsible during that period for Cartier’s growth strategy and has overseen its geographical expansion, most notably into new markets in Asia. Under Bernard’s leadership, Cartier has thrived and is now exceptionally well positioned as the world’s pre-eminent international jewellery Maison. This is due in no small measure to the commitment, enthusiasm and hard work of Bernard and the excellent management team that he has built.
Stanislas de Quercize has proved himself to be a highly effective leader at Van Cleef & Arpels and has successfully overseen its development, fully respecting the traditions and heritage of that Maison. I am sure that, under Stanislas’ future leadership, Cartier will continue to build upon its successes to date and maintain its unparalleled position as King of Jewellers and Jeweller to Kings.”
Mr Fornas will continue to have a senior management role within the Group, working closely with Johann Rupert and Richard Lepeu. He will remain as a member of Richemont’s Group Management Committee. In due course, Mr de Quercize will also become a member of the Management Committee.
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Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Montblanc Maison; and Other, being Alfred Dunhill, Lancel, Net-a-Porter and Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Board of Directors
Richemont announces changes to the role of Mr Jan Rupert, a member of the Board of Directors of Compagnie Financière Richemont SA.
Mr Jan Rupert will relinquish his responsibilities as Group Manufacturing Director with effect from 1 April 2012 in order to devote time to other activities. He will remain an Executive Director and will stand for re-election to the Board at the Company’s annual general meeting in September 2012.
Since joining the Group in 1999, Mr Jan Rupert has held the position of Group Manufacturing Director, with overall responsibility for the Group’s manufacturing strategy. Following this change, the Group’s manufacturing strategy will be overseen by Mr Richard Lepeu, the Group’s Deputy Chief Executive Officer.
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Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Termination of share buy-back programme
On 27 May 2010, Richemont announced a programme envisaging the buy-back of 10'000'000 of its own ‘A’ bearer shares over a two year period. On 18 May 2011, the Board of Directors decided to extend the buy-back programme by an additional 5'000'000 ‘A’ bearer shares. The extended buy-back programme thus amounted to 15'000'000 ‘A’ bearer shares.
At a meeting held on 22 March 2012, the Board of Compagnie Financière Richemont SA considered the progress made to date and the requirements of the executive stock option plan. At that meeting, it was decided that the current programme should be terminated with immediate effect. 12'690’200 ‘A’ bearer shares have been repurchased within the scope of the extended programme up to that time. As a consequence of the Board's decision, no further shares will be bought back in terms of the scheme.
The shares acquired are held in treasury to cover the obligations arising from the stock option plan, which benefits certain executives of the Richemont Group. The repurchased shares will not be cancelled.
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Futher Information
Richemont “A” shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont Interim Report 2011 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2011.
The interim report reflects the information contained in the Richemont results announcement, which was issued on 11 November 2011, as well as the unaudited condensed consolidated financial statements, which were posted on the Group’s website the same day.
Copies of the interim report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them. Copies may be obtained from the Company’s registered office at the address below.
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Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.
Richemont reports five months sales at Annual General Meeting
| Change at constant exchange rates versus prior year | Change at actual exchange rates versus prior year | |
Sales by region |
||
| Europe | + 22 % | + 21 % |
| Asia-Pacific | + 59 % | + 46 % |
| Americas | + 41 % | + 26 % |
| Japan | + 8 % | + 7 % |
Sales by distribution channel |
||
| Retail | + 44 % | + 37 % |
| Wholesale | + 27 % | + 22 % |
Sales by business area |
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| Jewellery Maisons | + 41 % | + 34 % |
| Specialist Watchmakers | + 34 % | + 28 % |
| Montblanc Maison | + 15 % | + 10 % |
| Other | + 30 % | + 24 % |
Total |
+ 35 % | + 29 % |
Ahead of its Annual General Meeting to be held later today in Geneva, Richemont announces that its sales for the five months ended 31 August 2011 increased by 29 % at actual exchange rates. At constant exchange rates, sales increased by 35 %.
On a region-by-region basis, sales growth in Europe was robust, reflecting purchases made by local clients as well as travellers. The Asia-Pacific region continues to report very strong sales growth. This stems from sustained consumer confidence in that region, further boosted by the Maisons’ investments in their distribution networks. Sales growth in the Americas was also notable. Sales in Japan increased, despite the aftermath of the natural disasters which struck that country in March.
Retail sales enjoyed a higher momentum than wholesale sales thanks to a good performance in the Maisons’ boutiques, the expansion of their retail networks, particularly in the Asia-Pacific region, and strong growth at NET-A-PORTER.
All Maisons enjoyed solid growth, in particular the Jewellery Maisons with their wellestablished retail networks.
Richemont expects its sales and operating profit for the first six months of this year to be significantly higher than the comparative period.
Based on the strengthening of the Swiss Franc between March 2011 and today, the Group will incur a significant translation loss on its cash balances. Further, the accounting gain recognised in the comparative period relating to the acquisition of Net-A-Porter of € 101 million will not re-occur. Accordingly, Richemont expects attributable profit to be broadly in line with the prior year despite a significantly higher operating profit.
Mr Johann Rupert, Executive Chairman and Group Chief Executive Officer, commented:
“The rest of the financial year is difficult to predict. The problems of fiscal deficits generally and Euro zone difficulties in particular are likely to act as a drag on business prospects for companies in the period ahead, especially if the growth markets are affected. To hope for a continuation of the current good trading levels in such circumstances may be over-optimistic. In addition, we must keep in mind the demanding comparative figures against which sales in the coming six months will be measured.
Moreover, the impact of the Swiss franc’s appreciation against the euro and other major currencies obviously poses a challenge for all Swiss exporters. For Richemont, with a significant production base, our headquarters and many of our Maisons located in Switzerland, the stronger Swiss franc will continue to be negative for our cost of sales and operating expenses, maintaining negative pressure on our margins.
It is reassuring that our Group continues to enjoy a strong financial position: the net cash position at 31 August 2011 was € 2.6 billion. The strength of our balance sheet, our continuing cost discipline and the agility of our Maisons means that we will continue to maintain our investment plans and face the foreseeable future with cautious optimism.”
Richemont’s interim results for the six-month period to 30 September 2011 will be released on 11 November 2011.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and NET-A-PORTER.COM as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2011, Richemont reported sales of € 6 892 million. Operating profit for the year amounted to € 1 355 million.
Richemont Annual General Meeting 2011
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2011.
A dividend of CHF 0.450 per share will be paid on the listed 'A' bearer shares and a dividend of CHF 0.045 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 15 September 2011 against presentation of coupon number 14, free of charges but subject to Swiss withholding tax at 35 %. The remaining available retained earnings of the Company, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda were approved by the shareholders.
During the general meeting, the Chairman announced that the board meeting held earlier in the day had approved the recommendations of its Nominations Committee with regard to the responsibilities of certain non-executive directors with immediate effect. Mr Josua Malherbe has been appointed Chairman of the Board’s Audit Committee, replacing Mr Yves-André Istel. Mr Istel will continue to serve on the Audit Committee.
Richemont Annual Report 2011 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2011. The report may be downloaded from the Richemont website.
Regarding the year under review, the annual report reflects the information contained in the Richemont results announcement, which was issued on 19 May 2011, as well as the Group and Company financial statements which were posted on the Group’s website the same day.
Copies of the report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them. Copies may be obtained from the Company’s registered office at the address below or by contacting the Company via the website.
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'A' shares issued by Compagnie Financière Richemont SA are listed and traded on 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).
Share buy-back programme
Basis and purposes of the buy-back programme
On 27 May 2010, Compagnie Financière Richemont SA, Bellevue, Geneva (‘CFR’) announced a programme envisaging the buy-back of 10'000'000 of its own ‘A’ bearer shares over a two year period, representing 1.74 per cent of the capital and 0.96 per cent of the voting rights of the company. To 18 May 2011, 4'658’509 ‘A’ bearer shares had been repurchased within the scope of this programme, representing 0.81 per cent of the capital and 0.45 per cent of the voting rights of the company.
On 18 May 2011, the Board of Directors of CFR decided to extend the buy-back programme by an additional 5'000'000 ‘A’ bearer shares. The extended buy-back programme thus amounts to 15'000'000 ‘A’ bearer shares of CFR, representing 2.61 per cent of the capital and 1.44 cent of the voting rights of the company.
The shares acquired in the scope of the programme will be held in treasury to cover the obligations arising from the stock option plan, which benefits certain executives of the Richemont Group.
Execution of the buy-back programme - No special trading line
The share buy-backs will be implemented by UBS SA (Investment Bank division) under market conditions, either on SIX Swiss Exchange or on JSE Limited (where the shares would be acquired in the form of ‘depositary receipts’).
The repurchased shares will not be cancelled and the buy-back programme will not give rise to the opening of a special trading line. Information relating to the evolution of the extended buy-back programme will be published regularly on the following address: http://www.copa.ch
The buy-back period started on 27 May 2010 and will expire by 25 May 2012. The publication of the results of the buy-back programme will be published one trading day after its termination.
CFR reserves the right to stop to the buy-back programme at anytime and has no obligation to buy CFR shares in execution of the programme.
Share capital of the company
The share capital of CFR, amounting to CHF 574'200'000, is divided into 522'000'000 ‘A’ bearer shares with a nominal value of CHF 1.00 each and 522'000'000 ‘B’ registered shares with a nominal value of CHF 0.10 each. The ‘A’ bearer shares are included in the Swiss Market Index (SMI) and are traded on SIX Swiss Exchange.
Significant shareholders and Treasury shares
The significant shareholders of CFR (under Art. 20 SESTA) are as follows:
| Relevant date | Domicile/head office | Kind of share | Number of shares | Voting rights (%) | Share capital (%) |
|
| Rupert Family | 31.03.2011 | Ch. de la Chênaie 50, 1293 Bellevue |
"A"bearer shares "B" registered shares |
2'836’664 522'000’000 |
0.27 50.00 |
0.49 9.09 |
| Public Investment Corporation | 27.02.2008 | ZA - Pretoria 0001, South Africa |
"A" bearer shares | 32'633'436 | 3.13 | 5.68 |
Moreover, on 18 May 2011, CFR indirectly held (treasury shares), via Richemont Employee Benefits Limited, St. Helier, Jersey, 22'406’950 ‘A’ bearer shares representing 3.90 per cent of the capital and 2.15 per cent of the voting rights as well as options with the right to acquire up to 10'658’721 ‘A’ bearer shares, representing 1.86 per cent of the capital and 1.02 per cent of the voting rights; representing in total 5.76 per cent of the capital and 3.17 per cent of the voting rights of CFR.
Confidential Information
At the date of this announcement, CFR does not possess any unpublished information about the Company likely to significantly influence the decision of shareholders to participate in the buy-back programme.
Value number and ISIN
Value Number : 4503965
ISIN : CH0045039655
Richemont Board of Directors
Richemont announces the nomination of Ms Maria Ramos to the Board of Directors of Compagnie Financière Richemont SA.
Ms Ramos is currently Group Chief Executive of Absa Group Limited, South Africa and is a member of the Executive Committee of Barclays Bank PLC, United Kingdom. Previous positions held by Ms Ramos include Director-General of the National Treasury of South Africa and Group Chief Executive of Transnet Limited, South Africa.
Ms Ramos has been nominated for election to the Board of Directors of Compagnie Financière Richemont SA at the Company’s Annual General Meeting, to be held on 7 September 2011. Her appointment is subject to the approval of the shareholders at that meeting. Ms Ramos will serve as a non-executive director.
Richemont Interim Report 2010 available on Richemont.com
Richemont is pleased to announce the publication of its interim report and accounts for the six months ended 30 September 2010. The report may be downloaded from the Richemont website.
The interim report reflects the information contained in the Richemont results announcement, which was issued on 12 November 2010, as well as the unaudited consolidated financial statements, which were posted on the Group’s website the same day.
Copies of the report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them. Copies may be obtained from the Company’s registered office at the address below or by contacting the Company via the website
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'A' shares issued by Compagnie Financière 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).
Additional member of the Richemont Audit Committee
Richemont announces that Maître Dominique Rochat has been appointed to the Audit Committee of Compagnie Financière Richemont SA.
Maître Rochat was elected to the Board of Directors in September 2010. He is a partner in the Geneva office of the law firm Lenz & Staehelin and serves on the Board as a nonexecutive director.
Following Maître Rochat’s appointment, the Audit Committee of Compagnie Financière Richemont SA comprises five non-executive directors: Mr Yves-André Istel, Chairman of the Audit Committee and Deputy Chairman of the Board; Mr Ruggero Magnoni; Mr Josua Malherbe; Lord Renwick of Clifton, Independent Lead Director; and Maître Dominique Rochat.
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Richemont reports five months sales at Annual General Meeting
| Change at actual exchange rates versus prior year (%) | Change at constant exchange rates versus prior year (%) | |
Sales by region |
||
| Europe | + 27 % | + 23 % |
| Asia-Pacific | + 51 % | + 36 % |
| Americas | + 52 % | + 38 % |
| Japan | + 22 % | + 4 % |
Sales by distribution channel |
||
| Retail | + 47 % | + 34 % |
| Wholesale | + 30 % | + 21 % |
Sales by business area |
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| Jewellery Maisons | + 32 % | + 21 % |
| Specialist Watchmakers | + 40 % | + 30 % |
| Writing Instruments Maison | + 28 % | + 20 % |
Other |
+ 62 % | + 51 % |
Ahead of its Annual General Meeting to be held later today in Geneva, Richemont announces that its sales for the five months ended 31 August 2010 increased by 37 per cent at actual exchange rates. At constant exchange rates and excluding the impact on sales of the acquisition of NET-A-PORTER.COM in April 2010, sales increased by 22 per cent.
The strong growth in sales reflects, in part, the low comparative figures reported in the prior period.
Europe, including the Middle East, remains the most important region for the Group with sales accounting for 41 per cent of overall sales. At constant exchange rates and excluding new businesses, sales in the European region increased by 15 per cent. The Asia-Pacific region, including China, continued to report strong sales growth. The Americas region also reported strong growth, albeit compared to very weak comparative figures. Sales growth in Japan was largely due to favourable exchange rate effects.
Excluding the acquisition of NET-A-PORTER, retail sales increased by 24 per cent at constant exchange rates, reflecting strong growth in all regions. The Group’s wholesale business, which suffered in particular during the comparative period due to de-stocking by business partners in some markets, also reported strong growth. The proportion of retail sales has increased from 43 per cent in the comparative period to 47 per cent in the period under review.
All Maisons have benefited from the improvement in the economic climate. The significant sales increase in the ‘Other’ segment principally reflected the acquisition of NET-A-PORTER, as well as positive momentum of the Group’s fashion and accessories Maisons, primarily at the retail level.
Commenting on the first five months sales, Executive Chairman and Group Chief Executive Officer, Mr. Johann Rupert, made the following statement:
"The improved trading environment is certainly welcomed. However, it is far too soon to draw any conclusions about the sustainability of the economic recovery or whether the recession is truly behind us.
This time last year we were still seeing falling sales. This year, with double-digit sales growth already in hand, Richemont will report significantly higher first half profit. However, the rest of the year is less straightforward. In the second half of last year, we saw some recovery in sales, setting higher comparative figures against which sales in the six months from October to March will be measured. Relative to the present conditions, those comparative figures were achieved with a weaker euro against the dollar and yen. Compared to the second half of last year, the current strength of the Swiss franc will be negative for the cost of sales.
While sales in the growth markets of Asia-Pacific and the Middle East continue to expand, sales in other regions remain below the record levels. This reflects the continuing difficulties in Western economies. These sales results highlight our Maisons’ strength in growth markets.
The Group is in a strong financial position. The net cash position at 31 August 2010 was € 1 900 million; broadly in line with the level at the beginning of the current financial year, despite our acquisition of NET-A-PORTER.
Our strong balance sheet, continuing discipline and powerful Maisons allow us to face the foreseeable future with a degree of optimism."
Richemont’s interim results for the six-month period to 30 September 2010 will be released on 12 November 2010.
About Richemont
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis, as well as the Ralph Lauren Watch and Jewelry joint venture; the Writing Instrument Maison Montblanc; and Other, being Alfred Dunhill, Lancel, NET-A-PORTER and Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
For its financial year ended 31 March 2010, Richemont reported sales of € 5 176 million. Operating profit for the year amounted to € 830 million.
Richemont Annual General Meeting 2010 - decisions of the meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2010.
A dividend of CHF 0.350 per share will be paid on the listed 'A' bearer shares and a dividend of CHF 0.035 per share will be paid on the unlisted 'B' registered shares of the Company. The dividend in respect of the ‘A’ shares will be payable on 16 September 2010 against presentation of coupon number 13, free of charges but subject to Swiss withholding tax at 35 per cent.
The remaining available retained earnings of the Company at 31 March 2010 of CHF 1 600 466 093, after payment of the dividend, are to be carried forward to the next business year.
All other matters on the agenda, including the election of the proposed board of directors and revisions to the Company’s Articles of Incorporation, were approved by the shareholders. In addition to the members of the board standing for re-election, the shareholders appointed Mr Josua Malherbe, Dr Frederick Mostert, Mr Guillaume Pictet, Me Dominique Rochat and Mr Gary Saage to the Board.
During the general meeting, the Chairman also announced that the board meeting held earlier in the day had approved the recommendations of its Nominations Committee with regard to the responsibilities of certain directors with immediate effect. Mr Yves-André Istel had been appointed Deputy Chairman of the Board; Mr Yves-André Istel had been appointed Chairman of the Board’s Audit Committee; Josua Malherbe had been appointed to the Board’s Audit Committee; and Lord Douro had been appointed to the Board’s Compensation Committee.
Richemont Annual Report 2010 available on Richemont.com
Richemont is pleased to announce the publication of its annual report and accounts for the year ended 31 March 2010. The report may be downloaded from the Richemont website.
Regarding the year under review, the annual report reflects the information contained in the Richemont results announcement, which was issued on 27 May 2010, as well as the Group and Company financial statements which were posted on the Group’s website the same day.
Copies of the report will be mailed to all holders of Richemont shares and South African depositary receipts and to other parties who have requested them. Copies may be obtained from the Company’s registered office at the address below or by contacting the Company via the website.
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'A' shares issued by the Swiss parent company, Compagnie Financière 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).
Richemont Board of Directors
Richemont proposes the following changes to the board of directors of Compagnie Financière Richemont SA.
Mr Guillaume Pictet, a Geneva-based investment manager, and Maître Dominique Rochat, a partner in the Geneva office of the attorneys Lenz & Staehelin, will be proposed for election to the board at the Annual General Meeting to be held on 8 September 2010. Both gentlemen will serve as non-executive directors.
Maître Jean-Paul Aeschimann will not be seeking re-election at the Annual General Meeting. Maître Aeschimann has served as Richemont’s Deputy Chairman since its formation in 1988.
Commenting on Maître Aeschimann’s decision, Johann Rupert, Executive Chairman and Chief Executive Officer of Richemont, said:
"Maître Aeschimann has made an enormous contribution to the Group both as a director and as a valued advisor over the last 22 years. We owe Maître Aeschimann an immense debt of gratitude for the role that he has played over that period, not only as Deputy Chairman but also as Chairman of the Audit Committee and as a member of the Compensation and Nominations Committees. His astute comments and broad understanding of the issues facing the Group will be missed."
The other members of the current board of directors will stand for re-election at the Annual General Meeting and, as previously announced, Mr Josua Malherbe, Dr Frederick Mostert and Mr Gary Saage will stand for election for the first time.
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Tribute to Mr Nicolas Hayek
The management and employees of Richemont wish to express their deep sorrow at the news of the sudden death of Mr Nicolas Hayek.
Mr Johann Rupert, Richemont Executive Chairman and Group Chief Executive Officer paid the following tribute:
"Having worked with Nicolas Hayek in a professional capacity for many years and having regarded him as a personal friend and mentor, I was deeply saddened to learn of his death.
On behalf of all of my colleagues at Richemont, let me take this opportunity to extend our most sincere condolences to Mrs Hayek and to his family.
Nicolas Hayek's death is an immense loss for Switzerland and for the watch industry. He was the driving force behind Swiss watchmaking; its leader and its saviour. Our industry has lost one of its champions, respected by everyone who dealt with him; a man of honour, gravitas and great personal charm.
He was a true leader and entrepreneur and an inspiration to me. He will be missed by all those who were fortunate enough to have known him."
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Richemont acquires shares in NET-A-PORTER
Richemont announces that its acquisition of shares in NET-A PORTER Limited, as a result of the offer announced on 1 April 2010, has been completed. As a consequence, Richemont will hold an effective economic interest of more than 93 per cent in the issued ordinary capital of NET-A PORTER.
NET-A-PORTER Limited owns NET-A-PORTER.COM, the premier online 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.
NET-A-PORTER Limited’s unaudited turnover for the financial year ended 31 January 2010 was approximately £ 120 million; it employs some 600 staff at its principal operations centres in London and New York.
NET-A-PORTER will operate as an independent entity alongside Richemont's other luxury goods businesses.
Richemont announces share buy-back programme
Richemont announces a programme to buy-back up to 10 million Richemont ‘A’ shares through the market over the next two years, representing 1.7 per cent of the capital and 1.0 per cent of the voting rights of Compagnie Financière Richemont SA.
Purchases may be effected through share purchases on SIX Swiss Exchange and the purchase of depositary receipts on the Johannesburg market at prevailing market prices or through the exercise of over-the-counter call options. The ‘A’ shares acquired will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. The ‘A’ shares to be acquired will be held in treasury to hedge awards to executives under the Group’s stock option plan.
Richemont currently holds 20.3 million ‘A’ shares, representing 3.5 per cent of the capital and 1.9 per cent of the voting rights of the Company, in treasury as a consequence of previous buy-back programmes, which have also been linked to the Group’s stock option plan. In addition, Richemont holds over-the-counter call options to acquire a further 13.6 million ‘A’ shares, representing 2.4 per cent of the capital and 1.3 per cent of the voting rights of the Company.
Richemont offers to acquire shares in NET-A-PORTER
Richemont announces that it has made an offer to shareholders in NET-A-PORTER Limited to acquire all of the shares in NET-A-PORTER Limited. The offer values the equity of NETA-PORTER at £ 350 million. Richemont currently holds some 33 per cent of the issued share capital of NET-A-PORTER Limited.
Irrevocable undertakings to accept the offer have already been received in respect of shares with over 80 per cent of the voting rights. Richemont will be entitled to acquire the remaining shares from other shareholders in due course if the offer becomes unconditional. The offer is expected to become unconditional on or after 1 April 2010.
The offer has the full support of NET-A-PORTER senior management and Ms Natalie Massenet, founder of NET-A-PORTER, will remain as Executive Chairman of NET-APORTER Limited. Ms Massenet is making an investment in the Richemont subsidiary established to own NET-A-PORTER Limited.
NET-A-PORTER Limited owns NET-A-PORTER.COM, the premier online 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.
NET-A-PORTER Limited’s unaudited turnover for the financial year ended 31 January 2010 was approximately £ 120 million; it employs some 600 staff at its principal operations centres in London and New York.
NET-A-PORTER will operate as an independent entity alongside Richemont's other luxury goods businesses.
Commenting on the acquisition, Johann Rupert, Executive Chairman and Chief Executive Officer of Richemont, said:
Quote
Natalie has created a superb, customer-oriented business at NET-A-PORTER in a relatively short period of time. We welcome her and her team to Richemont and look forward to working with them in the future to ensure NET-APORTER’s continuing success.
At Richemont, we value the independence of our Maisons very highly. That principle will especially apply to NET-A-PORTER as a platform for third parties. Becoming part of our Group will provide the company with the support it requires to realise its business strategies.
Unquote
Natalie Massenet, Executive Chairman of NET-A-PORTER, said:
Quote
This is an incredibly important stage in the life and development of The NETA- PORTER Group. The entire team is immensely proud of what we have built and is very excited about our future. 10 years on and firmly established as a benchmark in global luxury on-line retail, The NET-A-PORTER Group is poised and ready for the next decade and beyond.
Richemont has completely embraced our vision and strategy since they came on board as a shareholder and together we are going to continue to build the 21st Century model for luxury fashion retailing.
Unquote
The transaction is not anticipated to have any material impact on Richemont’s net asset position or earnings, excluding the impact of one-off accounting adjustments and amortisation charges, for the financial year ending 31 March 2011.
Changes to roles of directors within the board of Company Financière Richemont SA
Richemont announces the following changes to the board of directors of Compagnie Financière Richemont SA.
As previously announced, Mr Norbert Platt will give up his role as Chief Executive Officer on 31 March 2010. Mr Platt will remain on the board of Compagnie Financière Richemont SA as a non-executive director. Mr Johann Rupert, currently Executive Chairman, will combine that position with the role of Chief Executive Officer with effect from 1 April 2010.
Mr Richard Lepeu, currently Group Finance Director, will assume the role of Deputy Chief Executive Officer.
Mr Gary Saage will become Chief Financial Officer and Dr Frederick Mostert has been appointed Chief Counsel of the Group. Both gentlemen will be proposed for election to the board of Compagnie Financière Richemont SA at the Annual General Meeting to be held in September 2010. As previously announced, Mr Josua Malherbe will also be proposed for election to the board at that meeting.
Mr Alain Dominique Perrin and Dr Franco Cologni have indicated that they will give up their remaining direct executive roles within the organisation effective as of 31 March 2010. They will continue to serve as non-executive directors of Compagnie Financière Richemont SA.Although allocating more time to their non-Group interests, both gentlemen will also remain closely involved in organisations affiliated to Richemont.
Johann Rupert to assume role of Chief Executive Officer from 1 April 2010
In May 2009, Mr Norbert Platt, the current Group Chief Executive Officer indicated his intention to retire at the end of the year for health reasons. Mr Johann Rupert, the Group's Executive Chairman, will also assume the role of Chief Executive Officer with effect from 1 April 2010. Mr Platt will remain as a director of Compagnie Financière Richemont SA and will act as an advisor to the Group.
Mr Rupert commented as follows:
"Since he took up the role of Chief Executive Officer in 2004, Norbert has achieved remarkable results in terms of building the Group, rationalising its operations and improving our logistics infrastructure. Over the period we have seen a dramatic growth in sales and profitability at Richemont, even if the crisis of the past year has impacted the luxury goods industry so negatively.
Richemont's philosophy is that our Maisons should operate largely autonomously, whilst benefiting from the Group's central and regional support services. In these challenging times, we want to ensure consistency in our management approach. Richemont has strong management in the Maisons, in the regions and in our central functions and I look forward to working more closely with my colleagues." The Board of Compagnie Financière Richemont SA has also nominated Lord Renwick of Clifton to assume the role of Lead Independent Director, given the combination of Mr Rupert's role as Executive Chairman and Chief Executive Officer.
Trading statement for the five months ended 31 August 2009
The Annual General Meeting of Compagnie Financière Richemont SA will be held later today in the Mandarin Oriental Hotel, Geneva, Switzerland.
At that meeting, shareholders are expected to approve the proposals of the Board of Directors in terms of the approval of the financial statements and the appropriation of retained earnings. An ordinary dividend of SFr 0.30 per share has been proposed. A further press release will be issued immediately after the meeting to confirm the decision. Given the Richemont restructuring effected in October 2008, the dividend is not comparable to that paid in September last year.
At the meeting, Executive Chairman, Mr. Johann Rupert, will make the following statement in respect of Richemont’s current trading performance:
“From Richemont’s perspective, the first five months of this year through to end August have seen overall sales at a level 16 per cent below the comparable period last year, at actual exchange rates. The Americas region was the worst performer, as expected in the circumstances, with a decline of 36 per cent. Sales in the Asia- Pacific region, including China, grew by 5 per cent although sales in Japan were down 7 per cent. European sales were 22 per cent lower, including the Middle East, which is still growing.
The strengthening of the Yen and the dollar has cushioned the decline in underlying sales by around 5 per cent. Underlying sales in constant currencies were down by 21 per cent overall.
The Group’s retail business, through its own stores, has fared reasonably well, being only 7 per cent below last year’s level; wholesale business on the other hand is down by 21 per cent, which largely reflects de-stocking by retailers, most notably in the Americas.
The Jewellery Maisons and the Specialist Watchmakers experienced declines in sales, of 14 per cent and 18 per cent, respectively. The Writing Instruments division reported sales down 17 per cent for the period, whilst the Leather and Accessories Maisons suffered a decline of only 1 per cent. The ‘Other Businesses’ segment reported sales down by some 23 per cent, which principally reflects a significant decline in the level of turnover in the Group’s component manufacturing activities due to the lack of demand throughout the Swiss watch industry, including third parties.
Comparing the Group’s watch sales with those reported by the Swiss Watchmakers’ Federation for the six months to the end of June 2009, it is worth noting that, in Swiss franc terms, sales by the Maisons are down by some 19 per cent compared to a decline in Swiss watch exports over the same period of 26 per cent.
As I made clear when we published last year’s results in May, despite our continuing cost-control measures, Richemont’s profitability for the first six months of this year will inevitably be significantly below that seen in the period to September 2008.
Although the rate of decline in sales is slowing, we still urge caution. We would prefer to wait until we have more evidence of a broader economic recovery before speculating on the likelihood of a better second half, particularly when it comes to the wholesale business. The comparative figures for the second half of last year are already lower than for the first half and set a lower ‘hurdle’ in terms of performance. These comparatives, although lower, will be mitigated by an unfavourable currency environment in the second half.
Despite the difficult trading environment and the impact of the Group restructuring effected in October last year, which saw the spin off of the nonluxury assets and some € 350 million in cash to Reinet Investments, Richemont had some € 820 million in cash on its balance sheet at 31 March this year, a position that has been broadly maintained through to end August. The Group has no net debt. That is a very comfortable position to be in at this time.
Linked to this financial strength, I am confident in the power of the Maisons to innovate, improve customer service and grow their businesses. I am certain that Richemont will emerge from the current downturn very well placed to take advantage of the return of consumer confidence, whenever that may be.”
For its financial year ended 31 March 2009, Richemont reported an increase in sales of 2 per cent to € 5 418 million. Operating profit amounted to € 982 million, a decrease of 12 per cent compared to the prior year.
Richemont’s interim results for the six-month period to 30 September 2009 will be released in November.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing Instrument Maison - Montblanc; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In October 2008, Richemont spun off its investment in British American Tobacco together with some € 350 million in cash and a portfolio of other smaller investments to Reinet Investments SCA, Luxembourg.
Richemont Annual General Meeting 2009
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2009. A dividend of CHF 0.30 per Richemont share will be paid on the 'A' bearer shares of Compagnie Financière Richemont SA. The dividend will be payable on 14 September 2009 against presentation of coupon number 12, free of charges but subject to Swiss withholding tax at 35 per cent. No dividend will be paid on 'A' bearer shares held in treasury by the Group.
The remaining available retained earnings of the Company at 31 March 2009 of CHF 1 670 309 826, after payment of the dividend, will be carried forward to the next business year.
All other matters on the agenda were approved by the shareholders. All the serving members of the board of directors were re-elected. At the meeting, the Chairman indicated that Mr Josua Malherbe, former deputy Chairman of VenFin Limited and Dr Frederick Mostert, Richemont's Lead Counsel and Chief Intellectual Property Counsel would be proposed for election to the Board at the 2010 meeting.
__________________________________________
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing Instrument Maison - Montblanc; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In October 2008, Richemont spun off its investment in British American Tobacco together with some € 350 million in cash and a portfolio of other smaller investments to Reinet Investments SCA, Luxembourg.
Richemont announces completion of share buy-back programme
Richemont announces the completion of its extended programme to buy back 15.4 million
Richemont ‘A’ shares through the market.
A programme to buy back 10 million ‘A’ units was announced on 22 May 2008. The approval for an extension to buy back a further 5.4 million ‘A’ shares over a two year period was received on 29 May 2009. The change from units to shares and the extension followed from the Group’s restructuring of 20 October 2008. The extended programme therefore allowed for the buy-back of up to 15.4 million ‘A’ shares over the three-year period from May 2008 to May 2011 and represented 2.68 per cent of the capital and 1.48 per cent of the voting rights of
Compagnie Financière Richemont SA.
Purchases were effected on SIX Swiss Exchange at prevailing market prices and through the exercise of over-the-counter call options. The ‘A’ shares acquired have not been cancelled and no second trading line was introduced as a consequence of the buy-back programme. The ‘A’ shares acquired will be held in treasury to hedge awards to executives under the Group’s stock option plan.
Richemont currently holds in treasury 24.1 million ‘A’ shares, representing 4.20 per cent of the capital and 2.31 per cent of the voting rights of the Company. In addition, Richemont holds over-the-counter call options to acquire a further 13.6 million ‘A’ shares, representing 2.37 per cent of the capital and 1.30 per cent of the voting rights of the Company. All such shares and call options are linked to the Group’s stock option plan. Richemont ‘A’ shares (Valorennummer 4503965; ISIN CH 0045039655) are traded on SIX Swiss Exchange and are included in the SMI Swiss Market Index.
Richemont appoints Marty Wikstrom as CEO of its Fashion and Accessories Businesses
The Board of Compagnie Financière Richemont SA is pleased to announce the appointment of Ms. Martha (Marty) Wikstrom as Chief Executive Officer of the Group's Fashion and Accessories Businesses with immediate effect. Ms. Wikstrom's principal area of responsibility will be Richemont's Alfred Dunhill, Lancel, Chloé, Azzedine Aläia and Shanghai Tang Maisons. She will be based in London and will report to Johann Rupert, Richemont's Executive Chairman.
Commenting on Ms. Wikstrom's appointment, Johann Rupert said
‘I am delighted that Marty has accepted our invitation to join the Group in an executive capacity to head up our fashion and accessories businesses. The creation of this new position and Marty’s appointment reaffirms Richemont’s commitment to our fashion and accessories Maisons®. Marty brings to Richemont her considerable experience and knowledge of how to build and nurture enduring consumer relationships across a breadth of brands and product categories. She has the proven ability to translate extraordinary customer service into business expansion.’
Ms. Wikstrom has served as a non-executive director of Compagnie Financière Richemont SA since 2005. She will remain a member of the Board of the Company in an executive capacity. She has extensive experience in speciality retailing, having been President of Nordstrom's Full Line Store Group in the USA and Managing Director of Harrods Limited. Ms. Wikstrom is a founding partner in Atelier Management, LLC, which specialises in the acquisition and development of luxury brands.
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Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.$
In addition to its luxury goods business, Richemont currently holds a 19.4 per cent interest in British American
Tobacco.
Richemont announces extension of share buy-back programme
Richemont announces an extension to its existing programme to buy-back up to 10 million Richemont ‘A’ shares through the market. The extension follows the Group restructuring of October 2008 and will lead to the potential purchase of up to an additional 5.4 million ‘A’ shares in the period to May 2011. The extended programme allows for the buy-back of up to 10 million ‘A’ shares over the next two years, representing 1.74 per cent of the capital and 0.96 per cent of the voting rights of Compagnie Financière Richemont SA.
Purchases may be effected through share purchases on SIX Swiss Exchange and the purchase of depositary receipts on the Johannesburg market at prevailing market prices or through the exercise of over-the-counter call options. The ‘A’ shares acquired will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. The ‘A’ shares to be acquired will be held in treasury to hedge awards to executives under the Group’s stock option plan.
No purchases in respect of this extension will be made until the requisite authorisations have been received from the Swiss Takeover Board. Richemont currently holds 17.6 million ‘A’ shares, representing 3.07 per cent of the capital and 1.69 per cent of the voting rights of the Company, in treasury as a consequence of previous and existing buy-back programmes, which have also been linked to the Group’s stock option plan. In addition, Richemont holds over-the-counter call options to acquire a further 13.6 million ‘A’ shares, representing 2.37 per cent of the capital and 1.30 per cent of the voting rights of the Company.
Richemont ‘A’ shares (Valorennummer 4503965; ISIN CH 0045039655) are traded on SIX Swiss Exchange and are included in the SMI Swiss Market Index. A total of 522 000 000 ‘A’ shares are in issue. In addition, Richemont has 522 000 000 ‘B’ shares in issue, representing 9.09 per cent of the capital and 50.00 per cent of the voting rights of the Company. The ‘B’ shares are held by Compagnie Financière Rupert and are not listed.
This announcement is for information purposes and does not constitute a listing announcement under the terms of the Listing Requirements of SIX Swiss Exchange nor does it constitute a listing prospectus in terms of article 652a of Swiss Company Law.
Apportionment of share values
On 20 October 2008 Compagnie Financière Richemont SA (‘CFR’) and Reinet Investments SCA (‘Reinet’) confirmed the de-twinning of Richemont 'A' units into CFR shares and Richemont SA participation certificates and the conversion of Richemont SA into Reinet Investments SCA, pursuant to the terms of the Richemont restructuring, details of which were set out in the Information Memorandum published on 15 August 2008 and in the Reinet Prospectus dated 10 October 2008. Set out below are indications of a basis of apportionment of the cost of a Richemont 'A' unit as between the CFR 'A' share and the Reinet shares, which were initially traded on 21 October 2008.
Holders of CFR 'A' shares and Reinet shares
The tax treatment of individuals and corporate and other entities will vary from jurisdiction to jurisdiction. Former Richemont unitholders are strongly advised to consult their own professional advisors in respect of their taxation position. Neither Richemont nor Reinet is in a position to provide taxation advice to holders of the shares of the two companies.
For the purposes of determining the acquisition cost of a Reinet share and a CFR ‘A’ share in the relevant jurisdiction in which the former Richemont unitholder is resident, the acquisition cost of an ‘A’ Unit may have to be split by reference to the historic values of an RSA PC and a CFR ‘A’ share.
In this respect, the volume weighted average price ('VWAP') of a Reinet share on the Luxembourg Stock Exchange and a CFR ‘A’ share on the SIX Swiss Exchange as at close of trade on Tuesday, 21 October 2008 was € 12.87 per Reinet share and CHF25.72 per CFR ’A’ share. Based on these VWAPs and the daily fix for the Euro foreign exchange reference rate for the Swiss franc of 1.5224 as published by the European Central Bank on 21 October 2008, the ratio of the respective market values of the Reinet share and the CFR ‘A’ share on Tuesday, 21 October 2008 was 43.2% relating to the Reinet shares and 56.8% relating to the CFR 'A' shares.
Holders of South African Depositary Receipts Richemont 'A' units were traded on the exchange operated by JSE Limited ('the JSE') in the form of Richemont Depositary Receipts ('DRs') up to the close of business on 20 October 2008. From 21 October 2008, CFR 'A' shares and Reinet shares have traded separately on the
JSE in the form of CFR DRs and Reinet DRs, respectively.
The supplementary information memorandum ('SIM') published by Richemont Securities AG and addressed to holders of Richemont DRs on 15 August 2008 regarding the restructuring of Richemont explained the basis on which South African taxpayers should allocate the purchase cost of Richemont DRs ('Original Expenditure') as between CFR DRs and Reinet DRs. Richemont DR Holders must attribute the expenditure allowable in terms of the provisions of the Eighth Schedule to the Income Tax Act, 1962 in relation to each existing Richemont DR
between the newly issued CFR DR and the Reinet DR based on the market values of CFR DRs and Reinet DRs as soon as they commence trading as separate instruments on the JSE, which will be equal to the combined expenditure in respect of their Reinet DRs and their CFR DRs.
In accordance with practice in South Africa, former Richemont DR Holders may determine the allocation of the Original Expenditure between the new classes of securities by calculating the VWAP of each of the new securities on the first day of their trading. The method of allocation (‘the Apportionment Ratio’), however, remains at the discretion of each holder.
The Apportionment Ratio is to be used to apportion the Original Expenditure between the Reinet DRs and the CFR DRs for the determination of profits and losses, of a capital or trading nature. Where applicable the apportionment ratio is also to be used for capital gains tax purposes to apportion the valuation date value as contemplated in the Eighth Schedule to the Income Tax Act, 1962 between the Reinet DRs and the CFR DRs.
The VWAP of the Reinet DR and the CFR DR as at close of trade on Tuesday, 21 October 2008 was R19.39 per Reinet DR and R23.04 per CFR DR. Accordingly, the ratio of the respective market values of the Reinet DR and the CFR DR on the JSE as at close of trade on Tuesday, 21 October 2008 was 45.7% relating to the Reinet DR and 54.3% relating to the CFR DR.
In determining the base cost of the Reinet DRs and the CFR DRs for capital gains tax purposes, Richemont DR Holders are deemed to have acquired both the Reinet DRs and the CFR DRs on the dates on which the Richemont DRs were originally acquired.
Should Richemont DR holders require further clarification of the tax treatment and consequences of the apportionment of base cost, they should consult their tax advisors. Neither Richemont nor Reinet is in a position to provide taxation advice to holders of DRs.
Limitations of this announcement
This announcement is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulations. This announcement does not constitute nor does it form part of any offer or invitation to buy, sell, exchange or otherwise dispose of, or issue, or any solicitation of any offer to sell or issue, exchange or otherwise dispose of, buy or subscribe for, any securities, nor does it constitute investment, legal, tax, accountancy or other advice or a recommendation with respect to such securities, nor does it constitute the solicitation of any vote or approval in any jurisdiction, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction (or under exemption from such requirements).
In particular, the information contained herein does not constitute an offer of securities for sale in the United States. None of the securities described or directly or indirectly referred to in this announcement have been and nor will they be registered under the US Securities Act of 1933, as amended (the “Securities Act”). Such securities may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such terms are defined in Regulation S under the Securities Act) unless registered under the Securities Act or pursuant to an exemption from such registration. If and to the extent that any such securities may be deemed to be offered or sold as a result of the transactions described in this announcement, such securities are being offered and sold only to persons in offshore transactions outside the United States in accordance with Regulation S under the Securities Act. This announcement has not been and may not be disseminated or distributed by any person in the United States or to US persons.
Neither Reinet Investments SCA nor Reinet Fund SCA, FIS have been approved by the Swiss Federal
Banking Commission as a foreign collective investment scheme pursuant to Article 120 of the Swiss Collective Investment Schemes Act of 23 June 2006.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery
Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre,
Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis;
Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred
Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons
and watch component manufacturing activities for third parties.
Reinet Investments SCA acts as a securitisation vehicle allowing investors to access Reinet Fund SCA, FIS, a
specialised investment fund established in Luxembourg. Reinet Fund SCA, FIS will invest with the objective of
capital growth over the long term. The initial assets of the fund include a significant interest in British American
Tobacco plc.
Richemont restructuring effective as of 20 October 2008
Compagnie Financière Richemont SA (‘CFR’) and Reinet Investments SCA (‘Reinet’) are pleased to confirm that the previously announced de-twinning of CFR shares and Richemont SA participation certificates has been effected as at the close of trading today, 20 October 2008.
As a consequence, the de-twinned CFR ‘A’ shares will begin trading on SWX Europe Limited with effect from the opening of trading tomorrow, 21 October 2008. South African Depositary Receipts in respect of CFR 'A' shares will be traded on the Johannesburg stock exchange from 09:00 (CET and SAST) on Tuesday, 21 October 2008.
In conjunction with the de-twinning, participation certificates issued by Richemont SA have been converted into ordinary shares and Richemont SA has changed its legal form and name to become Reinet Investments SCA (a partnership limited by shares). It is envisaged that the new shares in Reinet will begin trading on the Luxembourg Stock Exchange at midday (CET and SAST) tomorrow, 21 October 2008.
Similarly, it is envisaged that South African Depositary Receipts in respect of Reinet ordinary shares will be traded on the Johannesburg stock exchange from midday (CET and SAST) on Tuesday, 21 October 2008. Further information regarding each of the securities is set out in the Appendix to this announcement.
Following the implementation of the de-twinning, the restructuring process will continue with the distribution of British American Tobacco plc ordinary shares to investors in Reinet on or around 3 November 2008.
Further information in respect of the restructuring is available in the Information Memorandum published on 15 August 2008 and the Reinet listing prospectus published on 10 October 2008. Both documents may (subject to certain restrictions) be downloaded from the Richemont website (www.richemont.com) and the Reinet website (www.reinet.com).
Limitations of this announcement
This announcement is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulations. This announcement does not constitute nor does it form part of any offer or invitation to buy, sell, exchange or otherwise dispose of, or issue, or any solicitation of any offer to sell or issue, exchange or otherwise dispose of, buy or subscribe for, any securities, nor does it constitute investment, legal, tax, accountancy or other advice or a recommendation with respect to such securities, nor does it constitute the solicitation of any vote or approval in any jurisdiction, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction (or under exemption from such requirements).
In particular, the information contained herein does not constitute an offer of securities for sale in the United States. None of the securities described or directly or indirectly referred to in this announcement have been and nor will they be registered under the US Securities Act of 1933, as amended (the “Securities Act”). Such securities may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such terms are defined in Regulation S under the Securities Act) unless registered under the Securities Act or pursuant to an exemption from such registration. If and to the extent that any such securities may be deemed to be offered or sold as a result of the transactions described in this announcement, such securities are being offered and sold only to persons in offshore transactions outside the United States in accordance with Regulation S under the Securities Act. This announcement has not been and may not be disseminated or distributed by any person in the United States or to US persons.
Neither Reinet Investments SCA nor Reinet Fund SCA, FIS have been approved by the Swiss Federal Banking Commission as a foreign collective investment scheme pursuant to Article 120 of the Swiss Collective Investment Schemes Act of 23 June 2006.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery
Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre,
Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis;
Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred
Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons
and watch component manufacturing activities for third parties.
Reinet Investments SCA acts as a securitisation vehicle allowing investors to access Reinet Fund SCA, FIS, a
specialised investment fund established in Luxembourg. Reinet Fund SCA, FIS will invest with the objective of
capital growth over the long term. The initial assets of the fund will include a significant interest in British American Tobacco plc.
Appendix
Ticker/Security number/ISIN
CFR 'A' shares
Market SIX Swiss Exchange
Ticker symbol CFR
Swiss Valorennummer 4.503.965
ISIN CH0045039655
CFR Depositary Receipts
Market Johannesburg Stock Exchange
JSE Depositary Receipt Code CFR
ISIN CH0045159024
Swiss Valorennummer 4.515.902
Reinet Investments SCA shares
Market Luxembourg Stock Exchange
Symbol ReinetInvest
Luxembourg common code 38381229
ISIN LU0383812293
Swiss Valorennummer 4.503.016
Reinet Investments SCA Depositary Receipts
Market Johannesburg Stock Exchange
JSE Depositary Receipt Code REI
ISIN (to 27 October 2008) (Note 1) CH0045159214
ISIN (from 28 October 2008) (Note 1) CH0045793657
Swiss Valorennummer (unchanged) 4.515.921
Note 1
From the commencement of trade on the Johannesburg exchange on Tuesday, 28 October 2008, 86.31126 per cent of a Reinet DR holder's holding of Reinet DRs will be 'blocked' in anticipation of their cancellation pursuant to the Reinet Reduction of Capital and the distribution of British American Tobacco plc shares to Reinet DR holders.
In order to allow Reinet DR holders to trade their 'available' Reinet DRs and to ensure that Reinet DR holders do not trade their 'blocked' DRs, the 'available' Reinet DRs will commence trading under the new ISIN number CH0045793657 from 09:00 (SAST) on Tuesday, 28 October 2008.
Timing of commencement of trading in de-twinned securities
Further to the announcement made by Richemont on 9 October 2008 regarding the restructuring of Richemont and the distribution of ordinary shares in British American Tobacco plc, Richemont would like to inform Unitholders of the timing of the commencement of trading in 'A' ordinary shares issued by Compagnie Financière Richemont SA ("CFR") and ordinary shares to be issued by Reinet Investments S.C.A. ("Reinet").
The listing of the CFR 'A' shares on SIX Swiss Exchange will take effect and trading of CFR 'A' shares (separate from the participation certificates issued by Richemont S.A.) on SWX Europe Limited will commence at 9.00 am (Central European Time) on Tuesday 21 October 2008. Trading in depositary receipts in respect of the CFR 'A' shares on the exchange operated by JSE Limited in South Africa (the “JSE”) will also commence at 9.00 am (Central European Time and South African Standard Time).
The delivery of Reinet shares to former Richemont unitholders on the morning of 21 October 2008 involves interaction between several independent clearing and settlement systems and there are various steps involved in the crediting and reconciliation of various accounts. Accordingly, whilst the listing of the Reinet shares on the Luxembourg Stock Exchange (and of depositary receipts in respect of the Reinet shares on the JSE) will take effect at 9.00 am (CET and SAST), trading in the Reinet shares (and the Reinet depositary receipts) will commence at 12.00 noon (CET and SAST) on 21 October 2008.
The times and dates set out above in this announcement may be subject to change as a result of events outside Richemont's or Reinet's control which may delay or affect the timing of certain events. Richemont or, where relevant, Reinet will issue a public notice in the event that any change is made to the above times and dates.
Copies of the Information Memorandum published on 15 August 2008, the listing prospectus in respect of Reinet and announcements may (subject to certain restrictions) be downloaded from the Richemont website (www.richemont.com).
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont currently holds a 19.5 per cent interest in British American Tobacco.
Richemont 'A' equity units are currently listed on SIX Swiss Exchange and traded on SWX Europe. Each 'A' unit comprises one share issued by Compagnie Financière Richemont SA, Geneva and one participation certificate issued by Richemont SA, Luxembourg.
Compagnie Financière Richemont SA shareholders approve Richemont restructuring
On 8 August 2008, Richemont announced details of its planned restructuring. This involves inter alia the separation of Richemont's luxury goods business from its other interests, the distribution to unitholders of 90 per cent of the Group's shareholding in British American Tobacco plc and the creation of a separate investment vehicle to be known as Reinet Investments SCA, which will be listed on the Luxembourg Stock Exchange and which will trade independently from the luxury goods business.
At a meeting of shareholder of Compagnie Financière Richemont SA ("CFR") held in Geneva today, the restructuring proposals were approved by a large majority. Compagnie Financière Rupert, the controlling shareholder representing the Rupert family interests, did not vote on the proposals. The shareholder approval complements the approval of Richemont SA ("RSA") participation certificate holders obtained at a meeting of that company held yesterday in Luxembourg. The resolutions put to an extraordinary general meeting of Remgro Limited shareholders were passed on 7 October 2008.
All necessary shareholder and participation certificate holder approvals having been obtained, the first phase of the restructuring will be effected on Monday, 20 October 2008. This involves the de-twinning of the CFR shares and RSA participation certificates making up the Richemont units, the transfer of the Group's luxury goods business to CFR and the creation of a new investment vehicle, Reinet Investments SCA., in Luxembourg. Trading in the de-twinned securities of CFR and Reinet Investments will begin on 21 October 2008 on SWX Europe and the Luxembourg exchange, respectively.
Further information in respect of the restructuring proposals and a timetable of the subsequent steps will be provided in a separate announcement. The Information Memorandum, which was published on 15 August 2008 and provides extensive detail of the proposals, may (subject to certain exclusions) be downloaded from the Richemont website: www.richemont.com.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont currently holds a 19.5 per cent interest in British American Tobacco. Richemont 'A' equity units are currently listed on SIX Swiss Exchange and traded on SWX Europe. Each 'A' unit comprises one share issued by Compagnie Financière Richemont SA, Geneva and one participation certificate issued by Richemont SA, Luxembourg.
This announcement is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulations.
Richemont SA Participation Certificate holders approve Richemont restructuring
On 8 August 2008, Richemont announced details of its planned restructuring. This involves inter alia the separation of Richemont's luxury goods business from its other interests, the distribution to unitholders of 90 per cent of the Group's shareholding in British American Tobacco plc and the creation of a separate investment vehicle to be known as Reinet Investments SCA, which will be listed on the Luxembourg Stock Exchange and which will trade independently from the luxury goods business.
At a meeting of Richemont SA ("RSA") participation certificate holders held today in Luxembourg, the proposals were approved by a large majority. Compagnie Financière Rupert, which holds approximately 9.1 per cent of the participation capital on behalf of the Rupert family, did not vote on the proposals.
The meeting of the shareholders of Compagnie Financière Richemont SA ("CFR") to consider the proposals will be held in Geneva on Thursday, 9 October. Further announcements will be made after that meeting.
If approved by the shareholders of CFR at tomorrow's meeting, the first phase of the restructuring will be effected on Monday, 20 October 2008. This involves the de-twinning of the shares and participation certificates making up the Richemont units, the transfer of the Group's luxury goods business to CFR and the creation of a new investment vehicle, Reinet Investments SCA, in Luxembourg. Trading in the de-twinned securities of CFR and Reinet Investments SCA will begin on 21 October 2008 on SWX Europe and the Luxembourg exchange, respectively.
Further information in respect of the restructuring proposals and a timetable of the subsequent steps will be provided in a separate announcement. The Information Memorandum, which was published on 15 August 2008 and provides extensive detail of the proposals, may (subject to certain exclusions)
be downloaded from the Richemont website: www.richemont.com.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont currently holds a 19.5 per cent interest in British American Tobacco. Richemont 'A' equity units are currently listed on SIX Swiss Exchange and traded on SWX Europe. Each 'A' unit comprises one share issued by Compagnie Financière Richemont SA, Geneva and one participation certificate issued by Richemont SA, Luxembourg.
This announcement is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulations.
Richemont Annual General Meeting 2008
Decisions of the meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2008.
A dividend of € 0.060 per Richemont unit will be paid to unitholders on the share capital of Compagnie Financière Richemont SA. The dividend will be payable to holders of ‘A’ and ‘B’ units on 15 September 2008 against presentation of coupon number 10, free of charges but subject to Swiss withholding tax at 35 per cent. The total dividend payable to unitholders will amount to € 33 601 043. No dividend will be paid on units held in treasury by the Group.
The Swiss franc equivalent of the dividend for the purposes of with-holding taxes, calculated at the €/Swiss franc exchange rate prevailing as at the time of the Annual General Meeting of 1.5957, is CHF 0.0957420 per Richemont unit or CHF 53 617 185 in total. The remaining available retained earnings of the Company at 31 March 2008 of CHF 1 413 258 700, after payment of the dividend, will be carried forward to the next business year.
In addition to the Compagnie Financière Richemont SA payment, a dividend of € 0.720 per unit will be paid by Richemont SA, Luxembourg. This will be payable to holders of ‘A’ and ‘B’ units without deduction of withholding taxes or charges, on 15 September 2008, against presentation of coupon number 11.
The total dividend for the year, payable by both entities, will therefore be € 0.780 per unit, before deduction of withholding tax.
All other matters on the agenda were approved by the shareholders. All the serving members of the board of directors were re-elected.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont currently holds a 19.5 per cent interest in British American Tobacco.
Richemont restructuring
On 8 August 2008, Richemont announced details of its planned restructuring. This involves inter alia the separation of Richemont's luxury goods business from its other interests, the distribution to unitholders of 90 per cent of the Group's shareholding in British American Tobacco plc and the creation of a separate investment vehicle to be known as Reinet Investments SCA, which will be listed on the Luxembourg Stock Exchange and which will trade independently from the luxury goods business.
The proposals are subject to the approval of Richemont unitholders at separate meetings of shareholders of the Swiss parent company, Compagnie Financière Richemont SA, and of holders of participation certificates issued by Richemont SA, Luxembourg.
Luxembourg law requires a quorum of 50 per cent of each class of securities to be present for proposals involving amendments to the statutes of a company to be valid. At a meeting of shareholders and participation certificate holders of Richemont SA held in Luxembourg earlier today, the necessary quorum was, as anticipated, not achieved. Accordingly, the meeting was adjourned.
As provided for in the timetable for the restructuring, a second meeting of participation certificate holders of Richemont SA will be held on Wednesday, 8 October 2008 in Luxembourg to resolve on the proposals. No quorum requirements apply to that meeting. The meeting of the shareholders of Compagnie Financière Richemont SA to consider the proposals will be held in Geneva on Thursday, 9 October. Further announcements will be made after these meetings.
Further information in respect of the restructuring proposals and a complete timetable of the subsequent steps is provided in the Information Memorandum, which can be downloaded from Richemont's website: www.richemont.com.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont currently holds a 19.4 per cent interest in British American Tobacco.
Richemont 'A' equity units are currently listed on SWX Swiss Exchange and traded on SWX Europe Limited.
Each 'A' unit comprises one share issued by Compagnie Financière Richemont SA, Geneva and one participation
certificate issued by Richemont SA, Luxembourg.
Richemont acquires 60 per cent interest in Manufacture Roger Dubuis SA
Richemont is pleased to announce that the Group has acquired a controlling interest in the well known Geneva watch company, Manufacture Roger Dubuis SA in a private transaction with Mr Carlos Dias, one of the founding shareholders.
Manufacture Roger Dubuis SA will continue to manufacture and distribute watches under the ‘Roger Dubuis’ name and will operate as an autonomous 'Maison' within Richemont. Roger Dubuis will benefit from broader integration of its distribution into the Richemont structure as a consequence of the transaction.
Commenting on the transaction, Mr Johann Rupert, Executive Chairman of Richemont, said: "Roger Dubuis watches are highly innovative in terms of movements and design. As a young business, it is very different from the more established specialist watchmakers within the Group today; as such it complements our Maisons perfectly. We look forward to developing the Roger Dubuis business internationally."
The transaction will have no material impact on Richemont's consolidated net assets and is not expected to have any significant impact on the Group's overall profitability for the year ending 31 March 2009.
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Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont currently holds a 19.4 per cent interest in British American Tobacco.
Richemont to restructure and distribute 90% of BAT interest
IMPORTANT NOTICE
The announcement and the accompanying presentation (together, the “Announcement”) are not for release, publication or distribution, in whole or part, in or into or from any jurisdiction (including the United States where to do so would constitute a violation of the laws of such jurisdiction.
TERMS OF ACCESS
PLEASE READ CAREFULLY THE TERMS AND CONDITIONS SET OUT BELOW. IF YOU ACCESS THIS SECTION OF THE WEBSITE OR ANY OF THE INFORMATION IT CONTAINS, YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS SET OUT BELOW. IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS, DO NOT ACCESS THIS SECTION OF THE WEBSITE OR ANY OF ITS INFORMATION.
The Announcement contains important information about your investment. You are advised to seek appropriate professional advice in relation to the proposals described in the Announcement.
The distribution of the Announcement may be restricted by local law or regulation. It is the responsibility of persons accessing the Announcement to satisfy themselves as to the full observance of any relevant laws and regulatory requirements. If you are in any doubt, you should not continue to access this area of the website or seek to access the website. In particular, the Announcement must not be accessed by, or otherwise provided to, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended).
Richemont restructuring proposals
In November 2007, Richemont announced that it was studying plans which might lead to a separation of its luxury goods operations from its other interests, which include its investment in British American Tobacco plc (“BAT”).
Richemont has conducted an extensive review of potential alternatives open to the Group in anticipation of the elimination of Luxembourg 1929 holding companies at the end of 2010. Richemont SA, the Group’s principal holding entity, currently benefits from the 1929 holding company status, as does the joint venture vehicle used by Richemont and Remgro Limited (“Remgro”) to hold the BAT interest.
The review has resulted in the development of proposals, which would see Richemont separated into two entities: a luxury business, headquartered in Switzerland, and an investment vehicle, which it is currently proposed should be based in Luxembourg and structured as an investment fund.
In addition to retaining their shares in the luxury goods business, it is envisaged that Richemont unitholders would receive shares in the investment vehicle and would be able to receive a substantial part of their interest in the BAT shares directly.
Subject to receipt of appropriate confirmations from Swiss regulators and SWX Swiss Exchange (“SWX”), the luxury goods business would continue to be listed on SWX, whilst it is expected that the new investment vehicle would be listed in Luxembourg, subject to the approval of Luxembourg regulators and the Bourse de Luxembourg.
Appropriate arrangements would be put in place to allow holders of Richemont South African depository receipts (“DRs”) to hold and trade DRs in respect of both the luxury goods and investment entities, subject to the approval of the JSE Limited, which operates the Johannesburg stock exchange.
Discussions are in progress with BAT, which has provided a commitment, if so requested, to apply for a secondary listing of its shares on the Johannesburg stock exchange. This would enable South African residents who currently hold Richemont DRs to hold BAT shares directly.
COMPAGNIE FINANCIÈRE RICHEMONT SA
50, CHEMIN DE LA CHÊNAIE CH-1293 BELLEVUE - GENEVA SWITZERLAND
TELEPHONE +41 (0)22 721 3500 TELEFAX +41 (0)22 721 3550
WWW.RICHEMONT.COM
Significant progress has been made to date in developing and refining the proposals. However, restructuring the Group is complex, involving the cooperation of Remgro and BAT, as well as the coordination of a large number of legal, fiscal and regulatory requirements and approvals in various jurisdictions. To date, not all of the necessary approvals have been obtained and a number of specific conditions must be fulfilled
before the proposed restructuring can be implemented.
The proposed restructuring remains subject inter alia to the necessary conditions and approvals, which will include approval by the Board of Compagnie Financière Richemont SA as well as approval by unitholders in their capacity as shareholders of Compagnie Financière Richemont SA and participation certificate holders of Richemont SA. There can be no certainty that the proposed restructuring as outlined above or any modified proposals will be put forward for approval by unitholders or that such a restructuring would actually take place.
Further announcements will be made when appropriate. No further comment will be made until such time.
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Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds a 19.4 per cent interest in BAT, one of the world’s leading tobacco groups.
‘A’ bearer units of Richemont are listed on SWX Swiss Exchange and are traded on SWX Europe.
Richemont announces unit buy-back programme
Richemont announces a programme to buy-back up to 10 million Richemont ‘A’ units through the market over the coming 2-year period. The 10 million ‘A’ units represent 1.74 per cent of the capital of the Group and 0.96 per cent of the voting rights of Compagnie Financière Richemont SA.
The ‘A’ units to be acquired will be held in treasury in connection with awards to executives under the Group’s stock option plan. Purchases will be effected through both SWX Europe and the Johannesburg market at prevailing market prices, or through the exercise of over-thecounter call options. The ‘A’ units will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme.
Richemont currently holds 13.1 million ‘A’ units, representing 2.29 per cent of the capital of the Group and 1.26 per cent of the voting rights at the level of Compagnie Financière Richemont SA, in treasury as a consequence of previous buy-back programmes, which have also been linked to the Group’s stock option plan. In addition, Richemont holds over-thecounter call options to acquire a further 8.9 million ‘A’ units, representing 1.55 per cent of the capital of the Group and 0.85 per cent of the voting rights at the level of Compagnie Financière Richemont SA.
Richemont ‘A’ units (Valorennummer 1273145; ISIN CH 0012731458) are included in the SMI Swiss Market Index and are traded on the SWX Europe exchange. A total of 522 000 000 ‘A’ units, each comprising one share of SFrs 1.00 in Compagnie Financière Richemont SA, Geneva and one participation certificate of no par value issued by Richemont SA, Luxembourg are in issue. In addition, Richemont has 52 200 000 ‘B’ units in issue, representing 9.09 per cent of the capital and 50 per cent of the voting rights at the level of Compagnie Financière Richemont SA. The ‘B’ units are held by Compagnie Financière Rupert and are not listed.
Richemont’s audited results for the year ended 31 March 2008 were announced earlier today. Operating profit increased by 21 per cent to € 1 108 million and net profit increased by 18 per cent to € 1 570 million.
This announcement is for information purposes and does not constitute a listing announcement under the terms of the Listing Requirements of SWX Swiss Exchange nor does it constitute a listing prospectus in terms of article 652a of Swiss Company Law.
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Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons, being Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties. In addition to its luxury goods business, Richemont holds a 19.4 per cent interest in British American Tobacco.
Richemont ‘A’ equity units are listed on SWX Swiss Exchange and traded on SWX Europe.
Disclosure of significant holding of Compagnie Financière Richemont SA ‘A’ bearer shares in accordance with Article 20 of the Swiss Federal Stock Exchange Act
Compagnie Financière Richemont SA has been advised by Public Investment Corporation Limited (‘PIC’), Private Bag X187, Pretoria 0001, Republic of South Africa that accounts under its management hold Richemont South African Depository Receipts (‘DRs’) equivalent to 32 633 436 ‘A’ bearer shares in Compagnie Financière Richemont
SA. Accordingly, PIC’s holding indirectly represents 3.13 per cent of the voting rights in Compagnie Financière Richemont SA.
Each ‘A’ bearer share in Compagnie Financière Richemont SA with a par value of CHF 1.00 is twinned with one participation certificate in Richemont SA of no par value to form one Richemont ‘A’ unit in bearer form.
Richemont South African Depository Receipts are issued by Richemont Securities AG, a wholly-owned subsidiary of Compagnie Financière Richemont SA. In its capacity as depository, Richemont Securities AG holds one ‘A’ bearer share in safe custody for every 10 Richemont DRs in issue.
The information contained in this press release is not considered to be price sensitive.
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Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons, being Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds a 19.3 per cent interest in British American Tobacco.
Richemont ‘A’ equity units are listed on SWX Swiss Exchange and traded on virt-x.
Richemont considers restructuring
Compagnie Financière Richemont SA announces that it is considering restructuring its business to split its luxury goods operations from its other interests, which include its interest in British American Tobacco plc (“BAT”).
The proposed restructuring reflects impending changes in the legal environment in Luxembourg where Richemont SA, the principal subsidiary of Compagnie Financière Richemont SA and the co-issuer of Richemont units, is established. Richemont SA is currently a Luxembourg “1929” holding company; the special status of such 1929 holding companies will be abolished at the end of 2010.
Richemont currently has a 19.3 per cent interest in BAT and the restructuring may entail providing Richemont unitholders with the option of becoming direct shareholders in BAT.
The plans for this possible restructuring remain subject to further review. There can be no certainty that any such review would lead to a proposal being announced or that any eventual proposal will have the features outlined above.
Further announcements will be made when appropriate. No further comment will be made until such time.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 19.3 per cent interest in British American Tobacco.
Richemont 'A' equity units are listed on SWX Swiss Exchange and traded on virt-x.
Richemont acquires watch component manufacturer Donzé-Baume SA
Richemont, the Swiss luxury goods group, is pleased to announce that it has acquired the watch case manufacturer, Donzé-Baume SA in a private transaction with the family shareholder group.
Donzé-Baume SA is based in Les Breuleux in the Jura canton of Switzerland and has some 300 employees working in the manufacture of watch cases and bracelets. The company supplies many of the leading Swiss specialist watchmaking companies, including a number of Richemont’s own Maisons
Both Mr Gérard Donzé and Mr Roland Donzé will retain their current positions and will continue to be responsible for the management of the company.
The transaction will have no material impact on Richemont’s consolidated net assets and is not expected to have any impact on the Group’s profitability for the year ending 31 March 2008.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 19.3 per cent interest in British American Tobacco.
Resignation of non-executive director
Richemont, the Swiss luxury goods group, announces the resignation of Mrs Anson Chan, a non-executive director, from the Board of Compagnie Financière Richemont SA.
Mrs Chan was elected to the Board of Directors at the Annual General Meeting held on 13 September 2007. Having announced her candidacy to the Hong Kong Legislative Council, she has concluded that her participation on the board would be incompatible with a position on the Council, were she to be elected.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 19.3 per cent interest in British American Tobacco.
Richemont acquires component manufacturing operations of Manufacture Roger Dubuis SA
Richemont is pleased to announce that the Group has concluded an agreement with the well known Geneva watch company, Manufacture Roger Dubuis SA.
The transaction involves the purchase by Richemont of the component production facility of Roger Dubuis. The facility currently manufactures movement kits for Roger Dubuis’ Poinçon de Genève watch movements, which Richemont will continue to supply to Manufacture Roger Dubuis SA, under the terms of a long-term agreement.
Manufacture Roger Dubuis SA, which was founded and is managed by Mr Carlos Dias, will continue to operate as an independent manufacturer and distributor under the ‘Roger Dubuis’ brand. In addition to the supply agreement, Richemont will distribute Roger Dubuis watches in some key markets, including the USA and the Middle East.
In order to cope with the increased demand of components for high end watch movements, not only for Roger Dubuis but also for Richemont’s own Maisons, the Group hopes, over time, to extend the production capacity at the Meyrin facility in Geneva. Some 200 employees will be transferred to the Group and the number is expected to grow, as the business develops.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 19.2 per cent interest in British American Tobacco.
Richemont Annual General Meeting 2007
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Bellevue, Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2007.
A dividend of € 0.054 per Richemont unit will be paid to unitholders on the share capital of Compagnie Financière Richemont SA. The dividend will be payable to holders of ‘A’ and ‘B’ units on 17 September 2007 against presentation of coupon number 8, free of charges but subject to Swiss withholding tax at 35 per cent. The total dividend payable to unitholders will amount to € 30 272 912. No dividend will be paid on units held in treasury by the Group.
The Swiss franc equivalent of the dividend for the purposes of with-holding taxes, calculated at the €/Swiss franc exchange rate prevailing as at the time of the Annual General Meeting of 1.6446, is CHF 0.0888084 per Richemont unit or CHF 49 786 831 in total. The remaining available retained earnings of the Company at 31 March 2007 of CHF 1 081 579 829, after payment of the dividend, will be carried forward to the next business year.
In addition to the Compagnie Financière Richemont SA payment, a dividend of € 1.196 per unit will be paid by Richemont SA, Luxembourg. This consists of an ordinary dividend of € 0.596 and a special dividend of € 0.60 per unit and will be payable to holders of ‘A’ and ‘B’ units without deduction of withholding taxes or charges, on 17 September 2007, against presentation of coupon number 9.
The total dividend for the year, payable by both entities, will therefore be € 1.25 per unit, before deduction of withholding tax.
All other matters on the agenda were approved by the shareholders. All the serving members of the board of directors were re-elected and, in addition, Mrs Anson Chan was elected to the Board.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 19.2 per cent interest in British American Tobacco.
Retirement of Executive Director
Richemont, the Swiss luxury goods group, announces the retirement of Mr Piet Beyers effective 30 June 2007. Mr Beyers, Marketing Services Director, will step down from his position as a member of the Board of Directors of Richemont SA, the Group’s management board.
Mr Beyers joined the Board of Richemont SA in 2000, with broad responsibility for marketing intelligence and related advisory services to the Group’s Maisons. He will not be replaced on the board of Richemont SA. His role as head of the Marketing Services Department will be taken over by Ms Anne Dellière, who has worked with him in the department since 2003.
Mr Johann Rupert, Richemont Executive Chairman, said:
“I have worked with Piet over the last 10 years both at Rothmans and at Richemont. He has been an innovative thinker, a trusted advisor and a good friend. We will all miss his insight into both the luxury industry in general and, in particular, his critical analysis of the approach taken to marketing luxury products by companies both inside and outside the Group. We wish Piet all the best for a very long and enjoyable retirement.”
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds a 19 per cent interest in British American Tobacco.
Richemont and Remgro’s interests in British American Tobacco
Compagnie Financière Richemont SA ("Richemont") and Remgro Limited ("Remgro") through their jointly held investment vehicle, R&R Holdings SA, ("R&R") hold a combined interest of 29.3 per cent in British American Tobacco plc ("BAT"). Richemont has an effective interest of 18.9 per cent in BAT and Remgro has an effective interest of 10.4 per cent. These percentage interests have grown in recent years as a consequence of the operation by BAT of its share buy-back programme.
R&R, Richemont, Remgro and BAT are parties to a Standstill Agreement originally entered into at the time of the merger of Rothmans International and BAT in 1999. Under the terms of this agreement, BAT is not permitted to continue with its buy-back programme without R&R's, Richemont's and Remgro's consent in writing once their combined interest reaches 30 per cent. At this level, the London Takeover Code would normally require that a cash offer be made for the shares in BAT that R&R does not already own. The Standstill Agreement therefore protects R&R and its shareholders from the obligation to make a compulsory bid for BAT.
BAT has announced today that it has sought R&R's, Richemont's and Remgro's consent to allow it to continue with its share buy-back programme, notwithstanding that it believes that the 30 per cent limit will be reached within the next 12 to 15 months. To preclude the obligation on R&R, Richemont or Remgro to make a cash bid for those shares that they do not already own, BAT has proposed to obtain approval from its independent shareholders for a waiver under the terms of the Takeover Code. The London Takeover Panel has indicated that, subject to such shareholder approval and its final review, it will waive the obligation.
Subject to the approval of BAT's independent shareholders and the waiver to be given by the Takeover Panel, R&R, Richemont and Remgro have agreed to the proposals made by BAT. In return for giving their consent, they have asked for and obtained a commitment from BAT that, if so requested, it will seek to obtain a secondary listing for its ordinary shares on the Johannesburg Stock Exchange, subject to all required regulatory approvals being obtained. Although the secondary listing would facilitate the trading of BAT ordinary shares in South Africa, neither Richemont, nor Remgro, nor R&R has any intention of making such a request to BAT at this time.
Johann Rupert, Executive Chairman of Compagnie Financière Richemont SA, said:
"Whilst the BAT shareholding has over the years been a strong underlying investment for Richemont, we do not wish to be placed under any obligation to make a bid for the company. Neither do we wish to be forced sellers under the BAT share buy-back programme to avoid such an obligation. We have therefore agreed to BAT's proposal, which would allow the buy-back programme to continue."
Thys Visser, Chief Executive Officer of Remgro Limited, said:
"The BAT proposal allows for the continuation of its buy-back programme for the benefit of all its shareholders. In particular, it would not give rise to circumstances under which Remgro would be obliged either to be a forced seller or to make a cash offer for the company. Together with Richemont, its co-investor, Remgro has agreed to BAT's proposal."
Disclosure of significant holding of Compagnie Financière Richemont SA ‘A’ bearer shares in accordance with Article 20 of the Swiss Federal Stock Exchange Act (2006)
Compagnie Financière Richemont SA has been advised by Public Investment Corporation Limited (‘PIC’), Private Bag X187, Pretoria 0001, Republic of South Africa that accounts under its management hold Richemont South African Depository Receipts (‘DRs’) equivalent to 52 108 775 ‘A’ bearer units in Compagnie Financière Richemont SA. Each ‘A’ bearer share in Compagnie Financière Richemont SA with a par value of CHF 1.00 is twinned with one participation certificate in Richemont SA of no par value to form one Richemont ‘A’ Unit in bearer form.
Richemont South African Depository Receipts are issued by Richemont Securities AG, a wholly-owned subsidiary of Compagnie Financière Richemont SA. In its capacity as depository, Richemont Securities AG holds one ‘A’ bearer share in safe custody for every 10 Richemont DRs in issue.
Accordingly, PIC’s holding indirectly represents 4.99 % of the voting rights in Compagnie Financière Richemont SA.
The information contained in this press release is not considered to be price sensitive.
Notes for editors:
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.9 per cent interest in British American Tobacco.
Retirement of Executive Director
Richemont, the Swiss luxury goods group, announces the retirement of Mr Callum Barton, currently President and Chief Executive of Richemont North America, Inc. effective 31 October 2006. Mr Barton will also step down from his position as a member of the Board of Directors of Richemont SA, the Group’s management board.
Mr Barton joined the group in 1975 in Paris as part of the original ‘les Must de Cartier’ team. His career has spanned different functions and he has held senior management positions at the functional, brand and regional levels.
Mr Barton’s role as President and CEO of Richemont North America will be taken over by Mr Daniel Mawicke, currently Chief Operating Officer of that company. Mr Mawicke, a US national, joined the Group in 1994, having formerly worked with Coopers and Lybrand in the USA and Switzerland. He was appointed Chief Financial Officer of Richemont North America in 1999 prior to becoming Chief Operating Officer in 2003.
Mr Johann Rupert, Richemont Executive Chairman, said:
“Callum has been a friend and trusted colleague for over thirty years. He was an integral part of the original Cartier management team and he has made a substantial contribution to the development of Richemont. Over the years he has been a wonderful ambassador for the various Maisons. Although Callum will be sorely missed, I am very happy to report that he has agreed to help me in a special consultancy role for the next three years.”
Mr Callum Barton, President & CEO Richemont North America, said:
“It has been an enormous privilege to have participated in the extraordinary growth of Richemont’s luxury businesses over the last years and to have worked for and with such a talented group of people”.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.8 per cent interest in British American Tobacco.
Richemont acquires Fabrique D'Horlogerie Minerva SA
The transaction will have no material impact on Richemont's consolidated net assets and will not have any impact on profitability for the year ending 31 March 2007.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in British American Tobacco.
Richemont Annual General Meeting 2006
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Bellevue, Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2006.
A dividend of € 0.05 per Richemont unit will be paid to unitholders on the share capital of Compagnie Financière Richemont SA. The dividend will be payable to holders of ‘A’ and ‘B’ units on 18 September 2006 against presentation of coupon number 6, free of charges but subject to Swiss withholding tax at 35 per cent. This represents a total dividend payable of € 27 862 265, excluding units held in treasury. The Swiss franc equivalent of this amount, calculated at the exchange rate prevailing as at the time of the Annual General Meeting, is CHF 44 214 629. The remaining available retained earnings of the Company at 31 March 2006, of CHF 752 898 449 after payment of the dividend, will be carried forward.
In addition, a dividend of € 1.05 will be paid by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont SA. This consists of an ordinary dividend of € 0.55 and a special dividend of € 0.50 per unit and will be payable to holders of ‘A’ and ‘B’ units without deduction of withholding taxes or charges, on 18 September 2006, against presentation of coupon number 7.
The total dividend for the year, payable by both entities, will therefore be € 1.10 per unit, before deduction of withholding tax.
Two members of the Board, Mr Leo Deschuyteneer and Mr Ernst Verloop, did not seek re-election. The shareholders of Compagnie Financière Richemont SA re-elected all other the serving members of the board of directors and, in addition, appointed Mr Ruggero Magnoni, and Mr Jan Rupert to the Board.
The transfer of Compagnie Financière Richemont SA’s registered office to 50 chemin de la Chênaie, 1293 Bellevue, Geneva was also formally approved by the shareholders.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument Maisons - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.8 per cent interest in British American Tobacco.
Disclosure of significant holding of Compagnie Financière Richemont SA ‘A’ bearer shares in accordance with Article 20 of the Swiss Federal Stock Exchange Act (2006)
Compagnie Financière Richemont SA has been advised by Public Investment Corporation Limited (‘PIC’), Private Bag X187, Pretoria 0001, Republic of South Africa that accounts under its management hold Richemont South African Depository Receipts (‘DRs’) equivalent to 52 559 740 ‘A’ bearer units in Compagnie Financière Richemont SA. Each ‘A’ bearer share in Compagnie Financière Richemont SA with a par value of CHF 1.00 is twinned with one participation certificate in Richemont SA of no par value to form one Richemont ‘A’ Unit in bearer form.
Richemont South African Depository Receipts are issued by Richemont Securities AG, a wholly-owned subsidiary of Compagnie Financière Richemont SA. In its capacity as depository, Richemont Securities AG holds one ‘A’ bearer share in safe custody for every 10 Richemont DRs in issue.
Accordingly, PIC's holding indirectly represents 5.03 % of the voting rights in Compagnie Financière Richemont SA.
The information contained in this press release is not considered to be price sensitive.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in British American Tobacco.
Richemont sells its ‘Old England’ subsidiary
Richemont, the Swiss luxury goods group, announces that it has entered into an agreement with Tercade SA, a holding company controlled by Mr Olivier Goldberg, for the sale of its interest in its subsidiary, Old England SA. The transaction will have no material impact on Richemont's balance sheet, cash flow or results.
Based in Paris, Old England operates a flagship department store on Boulevard des Capucines as well as stores in Lyon and Toulouse. It also has a number of points of sale in Japan. The Old England stores feature the best of English design in terms of clothing and accessories.
Richemont owns a portfolio of leading international brands or "Maisons", which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in British American Tobacco.
Richemont announces the appointment of Mr Marc Lelandais as President and Chief Executive Officer of Lancel
Richemont announces the appointment of Mr Marc Lelandais as President and Chief Executive Officer of its Lancel subsidiary. Mr Lelandais will take up his new position immediately.
Aged 39, Mr Lelandais studied corporate marketing and political sciences at the Sorbonne and graduated in luxury goods marketing from ISML, Paris and in International General Management from ESSEC, Paris. His career to date has focused on management and marketing with international companies, including Escada and Children Worldwide Fashion.
Mr Philippe Berlan, General Manager, will report to Mr Lelandais.
Paris-based Lancel was acquired by Richemont in 1997 and today employs some 570 people. It offers a wide range of luggage, handbags and leather accessories. With flagship stores on the Champs Elysées and at L'Opéra in Paris and with extensive retail distribution in its home market in France, Lancel also has a retail presence in Russia, China, the Middle East and Japan.
Richemont owns a portfolio of leading international brands or "Maisons", which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in British American Tobacco.
Extension of the current unit buy-back programme to February 2008
Richemont announces an extension to its programme to buy back Richemont ‘A’ units through the market for a further two-year period until Friday, 22 February 2008.
On 25 February 2004, the Group announced a programme to buy back up to 10 million ‘A’ units over a two-year period to 24 February 2006. To date, only 5 million ‘A’ units have been repurchased under the terms of this programme. The Board of Compagnie Financière repurchased under the terms of this programme. The Board of Compagnie Financière Richemont SA has therefore decided to extend the programme for a further two years on the same terms.
The ‘A’ units to be acquired will be held in treasury in connection with awards to executives under the Group's stock option plan. Purchases will be effected on Richemont's behalf by Lehman Brothers, London through both the Virt-x and Johannesburg markets at prevailing market prices. The ‘A’ units will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. Regular information as to the buy-back programme will be made available through the SWX Swiss Exchange.
Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in the ordinary share capital of British American Tobacco.
Mr. Henry-John Belmont retires
Richemont, the Swiss luxury goods group, announces the retirement of Mr Henry-John Belmont, Director of Haute Horlogerie. Mr Belmont has accordingly resigned from his position as a director of Richemont SA, the Group's management board. He will continue to act as a consultant to the Group on watch movement development.
Mr Norbert Platt, Richemont Chief Executive Officer, said:
"Since joining Richemont in 2000, Henry-John has made an important contribution to the success of our watchmaking operations. He has played a critical role first as CEO of Jaeger-LeCoultre, thereafter taking charge of the integration of Jaeger-LeCoultre, IWC and A. Lange & Söhne into the Group and, latterly, leading the development of our watch movement strategy. I thank Henry-John for the knowledge and expertise that he has brought to the Group and wish him a very long and happy retirement."
Richemont owns a portfolio of leading international brands or "Maisons", which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, which is made up of Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Söhne; Writing instrument manufacturers - Montblanc and Montegrappa; Leather and accessories Maisons, being Alfred Dunhill and Lancel; and Other businesses, which includes, specifically, Chloé as well as other, smaller Maisons and watch component manufacturing activities for third parties.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in British American Tobacco.
Juan-Carlos Torres to succeed Claude-Daniel Proellochs as Chief Executive of Vacheron Constantin
Richemont, the Swiss luxury goods group, announces the retirement of Mr Claude-Daniel Proellochs, Chief Executive of Vacheron Constantin. Mr Proellochs will be succeeded as Chief Executive by Mr Juan-Carlos Torres, currently Deputy Chief Executive of Vacheron Constantin.
Paying tribute to Mr Proellochs, Richemont Group CEO, Norbert Platt, said: “For the last 17 years, Claude-Daniel has steered Vacheron Constantin to a pre-eminent position in the Haute Horlogerie market. This has been borne out by the success enjoyed by the brand during this, its 250th anniversary year.
We thank him for his dedication and the immense contribution he has made to the development of Vacheron Constantin. He has been a passionate advocate for the Maison and, most importantly, has protected and enhanced the proud Vacheron Constantin heritage.” Vacheron Constantin was acquired by Richemont in 1996.
Mr Proellochs position within Vacheron Constantin will be taken by his current deputy, Mr Juan-Carlos Torres. Mr Torres, a Swiss national, has worked with Vacheron Constantin since 1981, initially in an accounting role before rising to become Finance Director in 1987, Finance and Manufacturing Director in 2000 and, latterly, Deputy Chief Executive in 2002.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.5 per cent interest in British American Tobacco.
Richemont Annual General Meeting 2005; Decisions of the meeting
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the board of directors for the appropriation of retained earnings at 31 March 2005.
A dividend of € 0.04 per Richemont unit will be paid to unitholders on the share capital of Compagnie Financière Richemont SA. The dividend will be payable on 19 September 2005 against presentation of coupon number 5, free of charges but subject to Swiss withholding tax at 35 per cent. This represents a total dividend payable of € 22 968 000. The Swiss franc equivalent of this amount, calculated at the exchange rate prevailing as at the time of the Annual General Meeting, is Sfr 35 474 076. The remaining available retained earnings of the Company at 31 March 2005, after payment of the dividend, will be carried forward.
In addition, a dividend of € 0.96 will be paid by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont SA. This consists of an ordinary dividend of € 0.46 and a special dividend of € 0.50 per unit and will be payable without deduction of withholding taxes or charges, on 19 September 2005, against presentation of coupon number 4.
The total dividend for the year, payable by both entities, will therefore be € 1.00, before deduction of withholding tax.
The shareholders of Compagnie Financière Richemont SA re-elected the serving members of the board of directors and, in addition, appointed Mr Norbert Platt, Group Chief Executive Officer, and Ms Martha Wikstrom to the Board.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.5 % interest in British American Tobacco.
Appointment to the Board of Richemont SA
Richemont, is pleased to announce the appointment of Mr Thomas Lindemann, Group Human Resources Director, to the Board of Richemont SA, Luxembourg – the Group’s Management board.
Mr Lindemann joined the Group’s Montblanc subsidiary in 1998 as Human Resources Director. He assumed the role of Director of Human Resources for Richemont Northern Europe in 2002 and was appointed Group Human Resources Director for Richemont in April 2005. Aged 42, he is a German national.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.3 per cent interest in British American Tobacco.
Management changes at Alfred Dunhill
Richemont, the Swiss luxury goods group, regrets to announce the resignation of Mr Simon Critchell, Chief Executive Officer of Alfred Dunhill Limited, after more than 15 years with Richemont. Mr Critchell will remain with the Group until 31 March 2006.
Formerly President and CEO of Richemont North America, Mr Critchell was instrumental in Cartier’s expansion in the United States throughout the 1990s. He was appointed to the Richemont management board in March 2001 and became CEO of Alfred Dunhill Limited in September of that year, when he moved to London and assumed responsibility for the worldwide renaissance of that unique, masculine, luxury brand.
In describing Mr Critchell’s achievements in the last 15 years, Johann Rupert, Richemont Executive Chairman said “After eleven distinguished years in New York, Simon took on the challenge of Alfred Dunhill in 2001 when the business was in difficulty and lacked direction. He has brought the brand back to a level of prominence with the press and the public that it has not seen for a number of years. We are sad to see Simon leave but wish him well in the future.”
Simon Critchell said “On a personal front, there are several projects I have been thinking about for some time and, after nearly 4 years at Alfred Dunhill, I feel now is the time to move on. It has been a privilege to lead Alfred Dunhill and I wish the brand every future success”.
Richemont has appointed Mr Christopher Colfer as Chief Executive Officer of Alfred Dunhill Limited to replace Mr Critchell. Mr Colfer, aged 36, joined Richemont in 1991 as a marketing executive in Rothmans International. He was closely involved in the successful integration of Rothmans International brand portfolio into British American Tobacco, following the merger of the two companies in 1999. Most recently, he has been responsible for a number of marketing initiatives and has overseen the successful development of Richemont’s smaller brands, including Chloé, Hackett and Purdey and has been responsible for a number of the Group’s venture and development capital investments.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.3 per cent interest in British American Tobacco.
Richemont sells Hackett Limited to Torreal, S.A.
Richemont, the Swiss luxury goods group, announces that it has entered into an agreement with Torreal S.C.R., S.A., a leading Spanish investment company, for the sale of its wholly-owned subsidiary, Hackett Limited. The transaction will have no material impact on Richemont’s balance sheet, cash flow or results for the year ending 31 March 2006.
Hackett offers a range of men’s clothing and accessories with a unique, British flavour both through its own retail outlets and through wholesale distribution arrangements.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.3 per cent interest in British American Tobacco.
The preliminary announcement of Richemont’s results for its financial year ended 31 March 2005 will be released on Thursday, 9 June 2005. As such, no further comment will be made on the current transaction at this time.
New CEO appointed at Van Cleef & Arpels
Richemont, the Swiss luxury goods group, announces that Mr Stanislas de Quercize has been appointed as President and Chief Executive Officer of Van Cleef & Arpels. He will assume his new role in September 2005.
Mr de Quercize joined Richemont in 1990 and has a broad experience of the luxury goods market, having worked in the Group’s Cartier, Montblanc and Alfred Dunhill subsidiaries. Since 2002, he has been President and CEO of Cartier North America.
Mr Michel Patout, acting CEO of Van Cleef & Arpels, will fulfil that position until Mr de Quercize takes up his duties in September 2005 and will continue in his role as Chief Financial Officer of the Maison thereafter.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.3 per cent interest in British American Tobacco.
Richemont and Ferrari
Ferrari and Richemont have agreed to enter into an exclusive license agreement for the development, manufacturing and distribution of watches by Richemont under the Ferrari brand;
Panerai, the Italian historical brand recognised for the high quality, technology and style of its timepieces, will be responsible for the development of haute horlogerie Ferrari watches following the concept “Ferrari engineered by Panerai”;
Panerai will present its first collection of Ferrari watches in spring 2006;
Panerai will be appointed “Official Timekeeper to Ferrari” with immediate effect.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.2 per cent interest in British American Tobacco.
Richemont sells 0.6 per cent effective interest in British American Tobacco to Remgro Limited
Richemont, the Swiss luxury goods group, announces that it has marginally reduced its interest in British American Tobacco p.l.c. (‘BAT’) through the indirect sale of 12,854,457 BAT shares to its joint venture partner, Remgro Limited (‘Remgro’).
This transaction follows an approach by Remgro to Richemont. Richemont agreed to effect the transaction at a modest premium to the market price prevailing on 25 February 2005, with net proceeds to Richemont amounting to £ 124.9 million (€ 181.2 million). Richemont will realise an exceptional gain of some € 80 million in its financial year ending 31 March 2005 as a result of the transaction.
Richemont and Remgro hold their BAT shares through a joint-venture vehicle, R&R Holdings SA. As a result of the transaction, Richemont’s effective interest in BAT will decrease from 18.8 per cent to 18.2 per cent.
Because Richemont and Remgro are considered to be related parties, the Board of Compagnie Financière Richemont SA constituted a Committee of Independent Directors to consider Remgro’s request. A fairness opinion in respect of the terms of the transaction was provided to the Committee and the Board by Deutsche Bank. The transaction was then approved by both the Committee and the Board.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
Management change (Ms Jousse)
Richemont, the Swiss luxury goods group announces that Ms Dominique Jousse, Group Human Resources Director, will step down from her post and resign her position on the Board of Richemont SA effective 30 April 2005.
Ms Jousse joined Richemont in 2000.
The decision was taken for personal reasons as Ms Jousse has opted not to relocate her home from London to Geneva, where Richemont is centralising its Group services.
Mr Johann Rupert, Executive Chairman, said:
“I want to thank Dominique for her contribution to the Group over the last five years. We appreciate the changes instituted during her tenure as Group HR Director and the progress that has been made during that time.
We wish her every success in her future endeavours.”
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.8 per cent interest in British American Tobacco.
Management change (Ms Guichot)
Richemont, the Swiss luxury goods group announces that Ms Isabelle Guichot, Chief Executive Officer of Van Cleef & Arpels and of Lancel, will leave the Group and resign her position as a director of Richemont SA, the Group’s management board, at the end of January 2005.
Ms Guichot has resigned to diversify her experience in the luxury goods industry; she will be taking up a position in another organisation, which is more dedicated to fashion.
Mr Johann Rupert, Executive Chairman, said:
"Isabelle indicated her intention to leave to me in December and I have tried since then to persuade her to stay. I appreciate her rationale for leaving and want to thank her for her great contribution and intense dedication throughout the 19 years she has worked in the Group at Cartier, Van Cleef & Arpels and more recently Lancel. I know that her professionalism and her personality will be sincerely missed throughout the Group.
We all wish her the best in her future responsibilities and I sincerely hope that our paths will cross in the future."
Mr Philippe Berlan, Managing Director of Lancel will take over full management responsibility for the Maison. At Van Cleef & Arpels, Mr Michel Patout, currently CFO, will assume management responsibility until further notice. Both will report directly to Mr Norbert Platt.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.8 per cent interest in British American Tobacco.
Management change (Mr Lakhnati)
Richemont, the Swiss luxury goods group announces that Mr Yannick Lakhnati, Chief Operating Officer, has resigned from his position and will leave the Group on 31 May 2005. He will remain as director of Richemont SA, Luxembourg until that time.
Mr Lakhnati is leaving for personal reasons and will be returning to South Africa. He joined Richemont in 2003.
Group Chief Executive Officer, Norbert Platt, said:
"I am sorry that Yannick has decided at this time to return home to South Africa. He has contributed significantly to the Group's performance since his appointment. We wish him every success for the future."
No decision has been taken as to the appointment of a replacement for Mr Lakhnati.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.7 per cent interest in British American Tobacco.
Richemont Annual General Meeting 2004
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2004.
A dividend of € 0.40 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont SA. The dividend will be payable without deduction of withholding taxes or charges, on 27 September 2004 against presentation of coupon number 3.
The shareholders of Compagnie Financière Richemont SA re-elected the serving members of the board of directors and in addition, appointed Mr Richard Lepeu, Group Finance Director, to the Board. Mr Lepeu remains a member of the Board of Richemont SA, the Group’s executive board of which he has been a member since 2000.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.7 % interest in the ordinary share capital of British American Tobacco p.l.c., the world’s second largest tobacco company.
Dr. Franco Cologni
Richemont, the Swiss luxury goods group, announces that Dr Franco Cologni has decided to retire from his full-time executive role at the time of his 70th birthday in November 2004. He will therefore step down from the board of Richemont SA, Luxembourg - the Group’s management board. Dr Cologni will remain on the board of Compagnie Financière Richemont SA, the ultimate parent company, as Senior Executive Director.
Dr Cologni will continue to serve as Chairman of Vacheron Constantin and of Officine Panerai. He has also been invited by Mr. Johann Rupert to join Richemont’s Strategic Committee. Dr Cologni will be involved primarily in the creative aspects of the Group, notably the Creative Academy in Milan, and in overseeing special events such as the forthcoming Montres et Merveilles exhibition to be presented by Richemont in Beijing. In his new capacity, he will continue to be closely associated with the Salon International de la Haute Horlogerie in Geneva.
Mr Johann Rupert, Richemont Executive Chairman, said:
Quote
Franco has been one of the most important and influential executives in the Group over the last 35 years. He has guided not only Cartier but also our watch brands to the success that they enjoy today. He was also instrumental in bringing Panerai into the Group and was the promoter of the Richemont Creative Academy in Milan. I have long admired his good taste, his professionalism and his commitment. Whilst he has indicated that, at 70, he wishes to reduce his executive responsibilities, Franco will continue to be closely involved in many aspects of the business and I look forward to working with him on the Strategic Committee.
Unquote
Dr Cologni commented:
Quote
I am honoured to be able to continue to serve the Group as a member of the Board of Directors of Compagnie Financière Richemont SA.
Design and craftsmanship are key to Richemont and I will endeavour to contribute my experience and knowledge of the luxury sector - especially in terms of jewellery and watchmaking - to the Group. I hope to be able to continue to contribute in terms of culture and the applied arts in the years to come and to be involved in an editorial capacity with the various publications of the Group, for example Cartier Art.
Unquote
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.6 per cent interest in British American Tobacco.
Richemont to present "Montres et Merveilles" exhibition in Beijing (updated 25 June 2004)
Richemont is proud to present the Montres et Merveilles exhibition of fine watchmaking in Beijing from 19 to 23 September 2004 in partnership with The City Council of Beijing, The Chinese Watch Association (an organisation established under the auspices of the Chinese Ministry for Light Industry) and The People’s Palace of Culture, Beijing (‘Tai Miao’).
The exhibition, which is being co-ordinated by Dr Franco Cologni, will present Richemont’s Haute Horlogerie Maisons in the Temple of Tai Miao at the entrance to the Forbidden City in Beijing. The exhibition will display over 600 pieces illustrating the history of watchmaking up to the current day.
This will be the first time that an exhibition of fine watchmaking has been staged in the exceptional surroundings of the Forbidden City. It will illustrate the heritage of the watchmaker’s art over the centuries and will demonstrate the different aspects of high-watchmaking craftsmanship. The Group’s watchmakers, enamellers, engravers and experts in the setting of gemstones will be on hand to demonstrate the skills that go into the creation of a fine timepiece.
The following Richemont Maisons will join together to present their product ranges, which will include both technically complex and high-jewellery pieces: IWC, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, Vacheron Constantin, Cartier, Piaget, Baume et Mercier, Alfred Dunhill and Montblanc.
To celebrate the event, Richemont has also offered its expertise to the City of Beijing to assist in the restoration of historic timepieces belonging to the collection of the Forbidden City.
Richemont announces further unit buy-back programme
Richemont announces a further programme to buy-back up to 10 million Richemont “A” units through the market over the coming 2-year period. The 10 million ‘A’ units represent 1.74 per cent of the capital of the Group and 0.96 per cent of the voting rights of Compagnie Financière Richemont SA.
The ‘A’ units to be acquired will be held in treasury in connection with awards to executives under the Group’s stock option plan. Purchases will be effected on Richemont’s behalf by Lehman Brothers, London through both the Virt-x and Johannesburg markets at prevailing market prices. The ‘A’ units will not be cancelled and no second trading line will be introduced as a consequence of the buy-back programme. Regular information as to the buyback programme will be made available through the SWX Swiss Exchange.
Richemont currently holds 24.6 million ‘A’ units, representing 4.29 per cent of the capital of the Group and 2.36 per cent of the voting rights at the level of Compagnie Financière Richemont SA, in treasury as a consequence of previous buy-back programmes, which have also been linked to the Group’s stock option plan.
Richemont ‘A’ units (Valorennummer 1273145; ISIN CH 0012731458) are included in the SMI Swiss Market Index and are traded on the Virt-x exchange. A total of 522 000 000 ‘A’ units, each comprising one share of SFrs 1.00 in Compagnie Financière Richemont SA, Geneva and one participation certificate of no par value issued by Richemont SA, Luxembourg are in issue. In addition, Richemont has 52 200 000 ‘B’ units in issue, representing 9.09 per cent of the capital and 50 per cent of the voting rights at the level of Compagnie Financière Richemont SA. The ‘B’ units are held by Compagnie Financière Rupert and are not listed. The Capital Group Companies Inc of Los Angeles, California have indicated that they hold 52.5 million ‘A’ units, representing 9.14 per cent of the Group’s capital and 5.03 per cent of the voting rights.
Richemont’s interim results for the six-month period ended 30 September 2003 were published on 13 November 2003 and a trading statement as to the Group’s sales in the threemonth period ended 31 December 2003 was issued on 15 January 2004.
This announcement is for information purposes and does not constitute a listing announcement under the terms of the Listing Requirements of SWX Swiss Exchange nor does it constitute a listing prospectus in terms of article 652a or article 1156 of the Swiss Company Law.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds a 19.4 per cent interest in the ordinary share capital of British American Tobacco.
Appointments to the management board of Richemont
Richemont is pleased to announce the appointment of three new directors to the Board of Richemont SA, the Group’s management board.
The new board members are:
| Mr Giampiero Bodino | Group Art Director |
| Ms Pilar Boxford | Group Public Relations Director |
| Mr Alan Grieve | Director of Corporate Communications |
Mr Bodino has worked with the Group for over 10 years and has played an important role in the design of new products for the Group. He will continue to be closely involved in product creation, working with the design teams within each of Richemont’s maisons.
In her new role, Ms Boxford will support all of the Group’s maisons in terms of developing strategies to enhance the effectiveness of their public relations activities. Ms Boxford joined Cartier in 1979 and has been responsible for overseeing Cartier’s public relations strategy, principally in the United Kingdom.
Mr Grieve has been Company Secretary of Richemont since its formation in 1988. In his new role, he will be responsible for the Group’s communications with financial markets, investors and the financial press and will retain overall responsibility for the Group Secretariat. Mr Grieve’s role as Company Secretary will be taken over by Mr Richard Thorby.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume& Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds a 19.4 per cent interest in the ordinary share capital of British American Tobacco.
Richemont trading statement for the quarter ended 31 December 2003
Percentage change in sales by geographic region for the three-month period
| At constant exchange rates |
At actual exchange rates |
|
| Europe | - 3 % | - 5 % |
| Japan | - 4 % | - 10 % |
| Asia-Pacific | + 20 % | + 4 % |
| Americas | + 18 % | 0 % |
| Total sales | - 4 % | + 4 % |
Percentage change in sales by business area for the three-month period
| At constant exchange rates |
At actual exchange rates |
|
| Jewellery maisons | + 2 % | - 7 % |
| Specialist watchmakers | + 11 % | + 4% |
| Writing instrument manufacturers | + 9 % | + 2 % |
| Textile, leather and other businesses | - 3 % | - 10 % |
| Total sales | + 4 % | - 4 % |
Richemont, the Swiss luxury goods group, announces that its sales for the quarter ended 31 December 2003 have grown by 4 per cent in constant currency terms over the comparative period in the prior year. At actual exchange rates, sales for the quarter declined by 4 per cent, the growth in sales in local currency terms being adversely impacted by the continuing strength of the euro against the yen and, in particular, the dollar. The growth in constant currency terms of 4 per cent reflected particularly good trading in December, with sales at constant exchange rates growing by 10 per cent during the month.
In Europe, the weak economic climate and the low level of tourist numbers have resulted in sales being below the prior year’s level in the important markets of France, Italy and Germany. This was offset, however, to some extent by good performances in the United Kingdom and Spain as well as in Russia, where the Group has recently established its own distribution organisation. In Japan, despite the positive impact of Cartier’s new Ginza boutique, sales were below the prior year’s level in local currency terms. Sales growth in Asia-Pacific markets reflects the relatively strong economies in the region and a marked increase in travel, in the case of Hong Kong particularly from mainland China. Sales in the United States were buoyed by the improving economic situation there. The growth in sales in dollar terms was, however, entirely offset by the significant weakening of the dollar against the euro.
A similar pattern of growth was seen in terms of both retail and wholesale sales during the period, each channel growing by 4 per cent at constant rates and reflecting a decline of 4 per cent at actual exchange rates.
Sales of the Group’s jewellery maisons – Cartier and Van Cleef & Arpels – grew by 2 per cent at constant exchange rates. Cartier, the Group’s largest business, reported modest growth during the quarter, reflecting the importance to the brand of the depressed European and Japanese markets. Cartier’s new product lines, which were launched during the quarter, contributed to a good performance in the month of December. Van Cleef & Arpels reported good growth during the period, albeit from a smaller base.
The Group’s specialist watchmakers, Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai, enjoyed a strong quarter, with all maisons reporting growth in constant currency terms. In terms of the Group’s writing instrument manufacturers, Montblanc reported good sales growth during the quarter, benefiting from new product launches and the diversification of its product lines as well as the contribution from its flagship store on Madison Avenue in New York, which opened in October.
Within textile, leather and other businesses, growth in sales at constant exchange rates at Alfred Dunhill and Chloé was offset by continuing weakness at Lancel, whilst Hackett’s performance was in line with the prior year’s level. In addition to its luxury goods business, Richemont holds a 19.4 per cent interest in the ordinary share capital of British American Tobacco, the world’s second largest tobacco company. This percentage has increased marginally as a consequence of the buy-back of its own shares by British American Tobacco and the consequent reduction in the number of ordinary shares in issue.
Management appointments at Richemont
Richemont, the Swiss luxury goods group, announces the following appointments Mr Richard Lepeu, currently Chief Operating Officer, has been appointed to succeed Mr Jan du Plessis as Group Finance Director of Richemont. Mr Lepeu will formally take up his new responsibilities on Mr du Plessis’ departure on 1 May 2004 and will work together with Mr du Plessis in the interim period to ensure a smooth transition. This follows the recent appointment of Mr du Plessis as non-executive Chairman of British American Tobacco. In his new role, Mr Lepeu will remain a member of the Management Board of Richemont SA, Luxembourg and will be nominated to the Board of Compagnie Financière Richemont SA, subject to the approval of shareholders at the Annual General Meeting to be held in September 2004.
Mr Lepeu joined Cartier in 1979, having previously worked in the corporate finance sector in Paris. He was Company Secretary of Cartier from 1981 to 1985, Director of Finance and Administration from 1985 to 1995 and Chief Executive of Cartier from 1995 to 2001. As Chief Operating Officer of Richemont his responsibilities include the Group’s distribution and shared service infrastructure.
Mr Yannick Lakhnati has been appointed Chief Operating Officer of Richemont to assume the responsibilities currently held by Mr Lepeu. He will formally take up these duties on 1 January 2004 and will become a member of the Management Board of Richemont SA, Luxembourg. Mr Lakhnati, aged 44, is a French national. He graduated from the Institut Supérieur de Gestion, Paris in 1983, served with the UN Food and Agriculture Organisation from 1983 to 1985 and worked with a specialist management consulting firm from 1986 to 1994, when he joined Remgro Limited in South Africa. He has worked with Remgro and its subsidiary companies up until this year.
Commenting on the appointments, Mr Johann Rupert, Executive Chairman of Richemont, said:
“Richard will make an ideal successor to Jan du Plessis. He has been with the Group for over 20 years and has an in-depth understanding of the business, having worked within Cartier, Richemont’s principal brand, and at the Group level. He will benefit from the assistance of the strong team that Jan has built and from the extended handover period until Jan leaves us at the end of April.
I welcome Yannick Lakhnati to Richemont and look forward to working closely with him. He has a broad-based background, having studied in France and worked both in Europe and Africa. With his strong analytical skills, Yannick will significantly enhance the effectiveness of Richemont’s management team. I wish both Richard and Yannick every success in their new roles.
”Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Piaget, Montblanc, Dunhill and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne and Officine Panerai.
In addition to its luxury goods business, Richemont holds a 19.2 per cent interest in the ordinary share capital of British American Tobacco.
Jan du Plessis appointed Chairman of British American Tobacco
Richemont announces that Jan du Plessis, Group Finance Director, has been appointed as Non-Executive Chairman of British American Tobacco p.l.c. by the board of that company. As a result, Mr du Plessis will step down as Group Finance Director of Richemont on 30 April 2004 in order to take up his new responsibilities in July 2004. He will also leave the boards of Compagnie Financière Richemont SA and Richemont SA, Luxembourg on 30 April.
Commenting on Mr du Plessis’ decision, Johann Rupert, Executive Chairman of Richemont, said:
“ Jan’s appointment as Chairman of BAT represents a major opportunity for him and I am genuinely delighted that he has been chosen for the position. We have worked closely together for over 20 years and during that period I have always admired his integrity, diligence, enthusiasm for our business and commitment to his colleagues and the Group as a whole. He played a key role in the formation of Richemont and has made a huge contribution to the Group over the years.
When Jan told me that he wanted to put his name forward for the position, I was initially very reluctant to accept the changes that such an appointment would mean for Richemont. However, I know that Jan will make an excellent Chairman of BAT, bringing to the role his comprehensive knowledge of the tobacco industry, which he has acquired while working with Richemont, as Finance Director of Rothmans International and as a non-executive director of BAT. Taking on the Chairmanship of BAT will be a major challenge but I am sure that it is one that Jan will handle brilliantly.
All my colleagues at Richemont and I will miss Jan very much indeed, both as a business colleague and as a friend. We all wish him every success for the future.” Jan du Plessis commented as follows:
“Having spent my entire working life with the Group, my decision to leave Richemont was clearly a difficult one. It has been a privilege to be part of the team that initially established Richemont and to participate in the tremendous change in the Group that we have seen over the last 15 years. On a personal note, I will always be grateful to Johann for his tremendous loyalty and support, without which much of what I have contributed to Richemont would not have been possible.
Needless to say though, I feel honoured to have been asked to take on the Chairmanship of British American Tobacco and I very much look forward to the challenge and the opportunities that lie ahead.” The Board of Compagnie Financière Richemont SA will hold its regular meeting on Wednesday, 12 November to consider the Group’s interim results, which will be announced the following morning. At that meeting, the Board will confirm the appointment of a successor to Mr du Plessis and an announcement in this respect will also be made on Thursday, 13 November.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds a 19.2 per cent interest in the ordinary share capital of British American Tobacco.
Richemont Annual General Meeting 2003
At the Annual General Meeting of Compagnie Financière Richemont SA held today in Geneva, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2003.
A dividend of € 0.32 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont SA. The dividend will be payable without deduction of withholding taxes or charges, on 29 September 2003 against presentation of new coupon number 2. The dividend is unchanged from that paid in 2002.
The shareholders of Compagnie Financière Richemont SA re-elected the serving members of the board of directors with the exception of Mr Joe Kanoui, who had indicated his intention not to stand for re-election. The shareholders additionally appointed Mr Simon Murray, Mr Alain Dominique Perrin and Mr Jürgen Schrempp to the board.
Mr Murray is an industrialist with considerable experience in the Asia Pacific region. He was formerly Group Managing Director of Hutchison Whampoa in Hong Kong and was Executive Chairman Asia Pacific of Deutsche Bank.
Mr Schrempp is Chairman of the Board of Management of DaimlerChrysler AG. Mr Perrin has worked with Cartier and Richemont for over 30 years. As previously announced, Mr Perrin will be standing down as Chief Executive of Richemont SA with effect from 1st October this year. He will, however maintain an executive role and will continue to work closely with the Group in terms of strategic marketing initiatives.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds a 19.0 % interest in the ordinary share capital of British American Tobacco p.l.c., the world’s second largest tobacco company.
Richemont announces the launch of its Creative Academy in Milan
Richemont, the Swiss luxury goods group, is pleased to announce the launch of the Richemont Creative Academy, a school for designers, product developers and communication professionals. The school is to be established in Milan under the direction of Dr. Franco Cologni, Senior Executive Director of Richemont and Mrs Grazia Valtorta, Programme Director of the Academy.
Richemont’s luxury goods bus inesses are the essence of luxury and the Group believes that creativity is essential to the development of its maisons. Richemont has perceived a need to nurture and develop creativity and new talent in the industry.
Offering courses at a Master level, the Creative Academy by Richemont will teach Postgraduates or Post Specialization School Students to apply their creative thought to products and communication.
The seat of the Academy will be Milan, a city that is home to the most respected design culture in the world. Two courses are planned: one for designers and one for product/communication developers, each lasting a year. They are intended to build a bridge between basic school education and the professional world through a curriculum, which is both innovative and modular. The course for designers will commence in January 2004. The course for product/communication developers will commence in October 2004.
All tuition will be in English. At the end of the course, the design students will receive a Master of Arts diploma, product/communication developers will receive a Master of Enterprise.
Apprenticeships will alternate with lectures, under the guidance of highly experienced tutors, selected from either the international world of academia or the creative professions.The Creative Academy will accept young people from all over the world, to facilitate the process of intercultural exchange and a broad creative dialogue. The best students will represent an important resource in a world of constant change. Scholarships are planned to allow the participation of the most deserving students.
Alain Dominique Perrin to retire as Richemont Chief Executive Officer in October 2003
Richemont, the Swiss luxury goods group, announces that Mr Alain Dominique Perrin intends to retire as Chief Executive Officer of the Group upon reaching his 61st birthday in October this year.
Mr Perrin has agreed, however, to continue to perform an executive role within the Group, with specific responsibility for strategy and marketing issues. In this capacity, he will remain as a member of the Strategic Product and Communications Committee and will be nominated to the board of Compagnie Financière Richemont SA, the Group’s ultimate parent company.
Commenting on Mr Perrin’s decision, Mr Rupert said:
Quote
When Alain came to me earlier this year and informed me that he wanted to retire in order to have more time to focus on his other business and cultural activities, I was disappointed but not surprised. Alain has worked ceaselessly and untiringly as Richemont’s CEO during what has been a very difficult time for everyone in the luxury goods world. We owe him an immense vote of thanks for his efforts, not just in his present position but also for the work he has done in the past, most notably at Cartier.
Alain has been with Cartier and Richemont for over thirty years and has been a great friend and colleague over that period. He was responsible for revitalising Cartier, developing its potential and bringing it to the paramount position that it enjoys today. He effectively became ‘Mr Cartier’ and I cannot speak too highly of the contribution that he has made to the Group over the years.
Despite his decision to give up the position of Chief Executive Officer, I am happy to say that Alain has been persuaded to remain with us in an executive role, albeit one which will allow him more time for his family, his winemaking and his many other activities. We face challenging times and I will draw heavily on Alain’s expertise in the years to come. He will work closely with me in overseeing the strategic marketing activities of our businesses. The board has invited him to become a director of Compagnie Financière Richemont SA and I am
delighted to say that Alain has accepted that position, which will be subject to ratification by shareholders at this year’s annual general meeting in September.
Unquote
Mr Perrin commented:
Quote
I have devoted my entire professional life to Cartier and, more recently, Richemont. The last two years as Chief Executive Officer of Richemont have been amongst the most challenging and exhausting and I feel that the time has come, as I approach the age of 61, to allow myself more time for my personal life and my many other interests including, of course, the production of wine at my estate, Chateau Lagrezette in Cahors.
Johann has persuaded me that I should continue to perform an executive role within the Group, at least over the next few years, and has asked that I work closely with him in terms of marketing and product conceptualisation. I have given him my commitment that I will make a substantial part of my time available to Richemont over the period and I look forward to a continuing involvement with my friends and colleagues in the Group.
Unquote
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Piaget, Montblanc, Dunhill and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds an 18.5 % interest in the ordinary share capital of British American Tobacco, the world’s second largest tobacco company
Richemont announces December quarter sales / acquisition of 20% of Van Cleef & Arpels
Richemont, the Swiss luxury goods group, announces that sales in euro terms for the period from October to December 2002 were 2 per cent below the prior year’s level. However, excluding the negative impact of the strengthening of the euro against the dollar and the yen, underlying sales rose by 4 per cent.
In a mixed trading environment, sales in Europe – the Group’s most important region - were in line with the prior year’s level. Sales in Germany were particularly weak, offsetting modest growth in France and Spain.
In the Asia-Pacific region, excluding Japan, sales for this period were some 9 per cent higher in constant currency terms but were in line with the prior year on translation into euros. Sales in the Japanese market grew by 1 per cent in yen but on translation showed a decline of 8 per cent in euro terms.
Sales in the Americas grew by 11 per cent in dollar terms over the results for the difficult period seen last year. Again, this growth was offset by currency movements, with sales in the region some 2 per cent lower when measured in euros.
In the context of the overall sales decline of 2 per cent, sales of watches – representing just under 50 per cent of total group sales – grew by 1 per cent. Jewellery sales declined by 4 per cent despite a strong performance in the high jewellery segment.
The Group’s retail sales in the period were in line with the prior year in local currency terms but were some 7 per cent lower at actual exchange rates. Wholesale sales grew by 6 per cent in constant currency terms but in euros that growth was restricted to 2 per cent.
Richemont is also pleased to announce that it has acquired the remaining 20 per cent of the share capital of Van Cleef & Arpels, the exclusive Parisian jeweller, bringing the Group’s shareholding in that company to 100 %.
Richemont owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Piaget, Montblanc, Dunhill and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne, and Officine Panerai
Disclosure of significant holding of Compagnie Financière Richemont SA "A" bearer shares in accordance with Article 20 of the Swiss Federal Stock Exchange Act (2003)
Compagnie Financière Richemont SA has been advised by The Capital Group Companies Inc, 333 South Hope Street, Los Angeles, California, USA (‘CGC’) on behalf of funds managed by Capital Research and Management Company, Los Angeles and clients managed by Capital Guardian Trust Company, Los Angeles, Capital International Limited, London, Capital International Inc, Los Angeles and Capital International SA, Geneva that 52 501 787 ‘A’ bearer shares in Compagnie Financière Richemont SA, representing 5.03% of the voting rights in the Company, are owned by accounts under the discretionary investment management of one or more of the investment management companies named above or their subsidiaries.
The information contained in this press release is not considered to be price sensitive.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Piaget, Montblanc, Dunhill and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne, and Officine Panerai.
Management changes at Cartier and Baume & Mercier
Mr Bernard Fornas has been appointed as Chief Executive of Cartier, Richemont’s principal operating subsidiary. He replaces Mr Guy Leymarie, who has left the Group for personal reasons.
Mr Fornas joined Richemont nine years ago and is currently Chief Executive of Baume & Mercier. Prior to joining Baume & Mercier in 2001, he was Marketing Director of Cartier. Mr Fornas’ role at Baume & Mercier will be taken over by Mr Michel Nieto, currently Marketing and Communications Director at Baume & Mercier.
Congratulating Mr Fornas on his appointment, Mr Johann Rupert, Executive Chairman of Richemont said: "It is a pleasure to welcome Bernard back to Cartier. Cartier is Richemont’s leading maison and retains its commanding position as one of the world’s foremost luxury goods businesses. With the launch of its new watches “Roadster” and “Divan”, and its new jewellery collection “The Kiss of the Dragon”, together with the continuing development of its boutique network, Cartier is extremely well positioned. I wish Bernard every success in his new role."
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai.
Richemont Annual General Meeting September 2002
The Annual General Meeting of Compagnie Financière Richemont AG will be held later today in Zug, Switzerland.
At that meeting, shareholders are expected to approve the proposals of the board of directors for the approval of the financial statements and appropriation of retained earnings. A dividend of € 0.32 per Richemont unit has been proposed, an increase of 7 % compared to the prior year. Shareholders are also expected to approve the transfer of the registered office from Zug to Geneva. A further press release will be issued immediately after the meeting to confirm these decisions.
At the meeting, the Group Chief Executive and Executive Chairman designate, Mr Johann Rupert, will make the following statement in respect of Richemont’s current trading performance:
Quote
Since 31 March 2002, the economic climate in which we operate has shown no sign of any improvement. Lower interest rates have had, to some extent, a beneficial effect in terms of keeping consumer-spending running at levels high enough to avoid a serious and prolonged recession in major economies. However, the accounting fiascos involving major US corporations that we have seen over the past year have undermined confidence and caused further turmoil in stock markets at a time when we might otherwise have hoped to see signs of rejuvenation.
Continuing global instability, particularly in terms of the situation in the Middle East, further adds to the uncertainties which impact negatively on the so called ‘feel good factor,’ which is an important element in supporting the demand for luxury products. In the first five months of the current financial year, Group sales overall have declined by almost 5 per cent compared to the prior year. However, excluding the negative impact of the strengthening of the euro against both the dollar and the yen during the period, the decline in underlying sales was limited to less than one per cent.
Sales in the Group’s most important geographic region, Europe, showed a decline of 6 per cent. Sales grew modestly in local currency terms in each of the Americas, Japan and Asia- Pacific regions but, on translation into the euro, showed an overall decline of some 3 per cent. Notwithstanding close monitoring of the growth in operating expenses, operating profit for the first six months of the year will, therefore, be below the prior year’s level.
The months of September to December are critically important to the Group in terms of sales. The current trading environment, however, makes it extremely difficult for us at this time to make any reliable forecast in terms of the likely level of demand during this period.
Richemont’s businesses offer products of enduring quality and style and are well placed to withstand these testing times. The Group continues to be in a good position to support those businesses, particularly given the strength of its balance sheet and the significant cash flow from the investment in British American Tobacco.
Unquote.
For its financial year ended 31 March 2002, Richemont reported an increase in sales of 5 % to € 3 860 million. Operating profit for the year decreased by 32 % to € 482 million.
Richemont’s interim results for the six-month period to 30 September 2002 will be released on Thursday, 14 November 2002.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai. In addition to its luxury goods business, Richemont holds a 21 % interest in British American Tobacco p.l.c., the world’s second largest tobacco company.
Dividend announcement September 2002
At the Annual General Meeting of Compagnie Financière Richemont AG held today in Zug, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2002.
A dividend of € 0.32 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont AG. The dividend will be payable without deduction of withholding taxes or charges, on 30 September 2002 against presentation of new coupon number 1. The dividend represents a 7% increase over the prior year dividend.
The shareholders also approved the transfer of the Company’s registered office from Zug to Geneva and the adoption of French language statutes.
Richemont has, over each of the last 3 years, executed buy-back programmes to acquire, in aggregate, 23.5 million ‘A’ units, representing some 4.5 per cent of the ‘A’ units in circulation. In line with this policy, Richemont today announced a further extension of the time-scale of this programme in terms of which it would be entitled to purchase a further 6.5 million ‘A’ units, over the coming 24 month period. The units acquired will be used in connection with the Group’s long-term, equity-based incentive programmes for executives. The units will be repurchased through both the Virt-x and Johannesburg markets. No second trading line will be introduced on the Swiss Exchange as a consequence of the proposal.
For its financial year ended 31 March 2002, Richemont reported an increase in sales of 5 % to € 3 860 million. Operating profit for the year decreased by 32 % to € 482 million. Richemont’s interim results for the six-month period to 30 September 2002 will be released on Thursday, 14 November 2002.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai. In addition to its luxury goods business, Richemont holds a 21 % interest in British American Tobacco p.l.c., the world’s second largest tobacco company.
Richemont announces December quarter sales 2002
Richemont, the Swiss luxury goods group, reports that sales, including the impact of acquisitions, in the Group's third quarter from October to December 2001 were at the same level as that reported in the comparative period of the prior year. On a like-for-like basis (including the sales of the three watch brands acquired in December 2000 in both periods), sales were some 8 per cent lower.
Like-for-like sales in the Americas recovered from the depressed levels seen in September and October but for the quarter as a whole were still some 13 per cent below the prior year's levels. In Asia, including Japan, sales for the quarter were 6 per cent below the prior year's levels. Sales in the Japanese market, which continued to grow in local currency terms, were adversely impacted on translation into the euro by the weakness of the yen.
Commenting on the performance during the quarter, Mr Johann Rupert, Group Chief Executive, said, "Sales were somewhat better than we had anticipated given the depressed economic and political climate, which prevailed during the period. Strong sales in the prior year established a high hurdle and we are reasonably content with the Group's performance at this difficult time."
The Group's wholesale sales were down by some 9% and retail sales by 7%. An improving trend in retail sales was seen over the quarter, with December sales being only 2 % below the previous year's level.
Richemont's businesses include Cartier, Van Cleef & Arpels, Montblanc, Alfred Dunhill and Lancel as well as the prestigious watch manufacturers Baume & Mercier, IWC, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, Piaget and Vacheron Constantin.
Split of Richemont units and related depository receipts - update
Swiss market
Further to the announcement issued on 7 June 2001, Richemont 'A' equity units, which are listed on the SWX Swiss Exchange and traded on virt-x, will be split in the ratio 100:1 with effect from Monday, 12 November 2001.
Richemont 'A' units currently trade in the region of SFr 3 300. Following the 100:1 split, the 'A' unit will trade at some SFr 33.00.
South African DR programmeWith effect from the same date, the ratio of Richemont Securities Depositary Receipts ('DRs'), which are traded on the JSE Securities Exchange South Africa, to Richemont 'A' units will also be amended. In consequence, the DRs will effectively be split in the ratio of 10:1 with effect from Monday, 12 November 2001.
Following the split of the 'A' units and the amendment to the DR : 'A' unit ratio, DRs will trade in the ratio of 10 DRs to each 'A' unit. (Up to 12 November 2001, the ratio remains 100 DRs to each 'A' unit.)
Richemont DRs currently trade at some Rand 190.00. Following the effective 10:1 split, the DRs will trade in the region of Rand 19.00.
ADR programmeRichemont, through the Bank of New York, operates a sponsored ADR programme in the United States. The terms of that programme will also be amended with effect from 12 November 2001, such that ADRs will trade at parity with the underlying 'A' units. (Up to 12 November 2001, ADRs will continue to trade in the ratio 100 ADRs to each 'A' unit.)
The consolidation of the ADR : 'A' unit ratio effectively offsets the split in the underlying 'A' unit such that the trading range of the ADRs will be unchanged.
LISTING DETAILS
Swiss exchange - 'A' units
| Old security number : 160 986 | New security number : 1 273 145 |
| Old ISIN : CH0001609863 | New ISIN : CH0012731458 |
JSE Securities Exchange South Africa - South African Depositary
| Receipts Old ISIN : CH0001609723 | New ISIN : CH0013157380 |
Richemont Board appointment
Richemont, the Swiss luxury goods group, today announced the appointment of Henry-John Belmont as Chief Executive of Richemont's specialist Watch Division (which consists of Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A. Lange & Söhne and Officine Panerai) and, as such, a Director of Richemont Société Anonyme, the Group's Management Board. This appointment was necessitated by the tragic death of Mr Günther Blümlein some weeks ago. Mr Belmont is currently Chief Executive of Jaeger-LeCoultre and was a long time colleague of Mr Blümlein at Les Manufactures Horlogères SA, prior to the acquisition of that company by Richemont last year.
Franco Cologni will continue as Executive Chairman of both Cartier and Richemont's specialist Watch Division.
Richemont trading statement 2001
Richemont, the Swiss luxury goods group, today announced that its businesses had suffered a considerable slowdown in the period since 11 September. The positive trend in sales seen over the first 10 days of the month was reversed such that, on a like for like basis, sales for the month of September as a whole decreased by some 13 per cent. Whilst the United States market was the worst affected, sales in most other markets - with the notable exception of Japan - were also adversely impacted.
The resulting loss of gross margin contribution, together with the increase in underlying operating costs reported at the company's Annual General Meeting on 13 September, has had a significant adverse impact on profitability. In consequence, the Group's operating profit for the six month period to 30 September 2001 is anticipated to be approximately 20 per cent below the level seen in the comparable period of last year.
Richemont's results for the six month period ended 30 September 2001 will be released on 15 November. Further information and analyses, together with a commentary on the outlook for the remainder of the financial year ending 31 March 2002, will be given at that time.
Richemont Annual General Meeting September 2001
At the Annual General Meeting of Compagnie Financière Richemont AG held today in Zug, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2001.
A dividend of € 30.00 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont AG. The dividend will be payable without deduction of withholding taxes or charges, on 1 October 2001 against presentation of coupon number 45. The dividend represents a 25% increase over the prior year dividend.
The shareholders also approved the split of Richemont units in the ratio of 100:1. The split of the units will take effect on 12 November 2001. Further details will be advised to unitholders in due course.
Richemont has, over each of the last 2 years, executed buy-back programmes to acquire, in aggregate, 200 000 ‘A’ units, representing some 4 per cent of the ‘A’ units in circulation. In line with this policy, Richemont today announced an extension of this programme in terms of which it would be entitled to purchase a further 100 000 ‘A’ units, being 2 per cent of the ‘A’ units in circulation, over the coming 12 month period. The units will be repurchased through both the Virt-x and Johannesburg markets. No second trading line will be introduced on the Swiss Exchange as a consequence of the proposal.
The text of certain comments made by Mr Johann Rupert, Group Chief Executive, during the course of the meeting is attached.
For its financial year ended 31 March 2001, Richemont reported an increase in sales of 26 % to € 3 684 million and an increase of 33 % in operating profit to € 712 million.
Richemont’s interim results for the six-month period to 30 September 2001 will be released on Thursday, 15 November 2001.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Dunhill, Montblanc and Lancel as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne, and Officine Panerai.
In addition to its luxury goods business, Richemont holds a 21.1 % interest in British American Tobacco p.l.c., the world’s second largest tobacco company.
Richemont Annual General Meeting 2001
(Press release attachment)
Mr Johann Rupert, Group Chief Executive, made the following comments as to the trading performance of Richemont’s luxury goods businesses:
Richemont has always avoided adding financial leverage on top of operating leverage. We acknowledged that this would result in less aggressive growth during boom times, but knew that this strategy would lead to out-performance of our more indebted competitors during lean times. This prudence often led to criticism that we were too conservative in our acquisition and expansion policies.
Furthermore, shareholders will recall me repeatedly cautioning against over-optimism about the luxury goods markets in general. I expressed concerns about the sustainability of the unprecedented growth in worldwide equity markets that prevailed from 1992 to 2000, which led to large increases in the consumers’ propensity to spend on luxury products. It was further pointed out that the weak Euro further enhanced earnings of European luxury goods companies. These conservative views were not too popular with certain "sell-side" analysts – one of them even nicknamed me "Rupert the Bear"!
In the first five months of the current financial year, Richemont’s sales increased by some 14 per cent. Excluding the effect of acquisitions, sales growth during the period would have been around 5 per cent. This increase, whilst satisfactory in the circumstances, is well below the exceptional 32 per cent growth in sales reported in respect of the first six months of the previous year.
Notwithstanding this slowdown in sales growth, the Group has maintained its focus on long-term objectives. We have continued the programme of investment in the Group’s manufacturing and distribution infrastructure, in marketing initiatives and in communication expenditure. The increase in operating expenses, at a rate in excess of the rate of growth in sales, will inevitably have a negative impact on operating profit during the first six months of the year. Consequently, we currently estimate that operating profit for the six-month period will be slightly below the very high level reported for the half-year to 30 September 2000, when operating profit grew by 55 per cent.
The tragic events of recent days, however, have clearly thrown the world into turmoil. This will increase the uncertainties already prevailing in economies worldwide such that short-term forecasting has become difficult.
In summary, after netting out the value of the BAT preferred shares, your company is free of debt. It has a strong balance sheet and good cash flow. Our dividends are covered a conservative six times. Richemont has a highly trained and motivated group of colleagues worldwide, who will continue to seek to attain the quality, creativity, originality and service that our clients expect. This we will achieve by building on the authentic heritage of our superb group of "Maisons".
Richemont announces 100 to 1 stock-split
Richemont, the Swiss luxury goods group, announces a proposed 100 to 1 split in the nominal value of its equity units. The proposal follows changes to Swiss company law permitting lower nominal values per share. The split, which is subject to shareholder approval at the Annual General Meeting of Shareholders to be held on 13 September 2001, will take effect in the fourth quarter of 2001.
Swiss market
Richemont ‘A’ equity units are quoted on the Swiss Exchange (‘the SWX’) and closed at SFrs 4 649.00 per unit on Wednesday 6 June 2001. Based on this price, the proposed split would result in the units trading at SFrs 46.49 per unit on the SWX. Each ‘A’ unit comprises one ‘A’ bearer share of SFrs 100.00 nominal value issued by Compagnie Financière Richemont AG indivisibly twinned with a bearer participation certificate of no par value issued by Richemont SA, Luxembourg. The proposed split would result in the reduction in the nominal value of the ‘A’ share to SFrs 1.00. The number of ‘A’ units would, in consequence, be increased from 5 220 000 to 522 000 000, involving a corresponding increase in the number of Richemont SA participation certificates. Richemont ‘B’ units, which are not listed, will also be split in the same ratio.
South African Depositary Receipts
In addition to its Swiss listing, Richemont South African Depositary Receipts (SADRs) are quoted on the JSE Securities Exchange South Africa (‘the JSE’). The SADRs currently trade in the ratio of 100 SADRs to each underlying ‘A’ unit. It is proposed to consolidate the ratio of SADR’s to ‘A’ units at the same time as the split is effected such that, after the effective date, SADR’s will trade in the ratio of 10 SADRs to each ‘A’ unit.
On Wednesday 6 June 2001, Richemont SADRs closed at Rand 208.60 on the JSE. Based on this price, the proposed change in the ratio of SADRs to ‘A’ units, combined with the effect of the split of the ‘A’ units, would result in an SADR trading at Rand 20.86.
ADR programme
Through The Bank of New York, Richemont also operates a sponsored ADR programme in the United States. Richemont ADRs are traded over the counter in the United States. ADRs currently trade in the ratio of 100 ADRs to one ‘A’ unit. It is proposed that the ADR to ‘A’ unit ratio be amended with effect from the effective date such that one ADR would equal one ‘A’ unit. As the proposed consolidation in the ratio of ADRs to each ‘A’ unit effectively offsets the 100:1 split of the underlying units, the trading range of the ADRs will not be impacted by the split.
Richemont acquires further 20 per cent of Van Cleef & Arpels
Richemont, the Swiss luxury goods group, is pleased to announce that it has acquired a further 20 per cent interest in Van Cleef & Arpels, one of the world's most renowned jewellery houses, from minority shareholders. The acquisition increases Richemont's interest in Van Cleef & Arpels to 80 per cent, the initial 60 per cent holding having been acquired in May 1999.
In addition to its interest in Van Cleef & Arpels, Richemont owns a portfolio of leading luxury goods houses, including Cartier, Montblanc, Lancel and Alfred Dunhill together with the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A Lange & Söhne and Officine Panerai.
Changes to the roles of Executive Directors who serve on the Board of Richemont
The Board of Compagnie Financière Richemont AG, the holding company of the Swiss luxury goods group, today announced several changes to the roles of Executive Directors who serve on the Board of Richemont SA, the Group's Management Board. These changes are a consequence of the acquisition of Les Manufactures Horlogères SA ("LMH") that was completed in December of last year. The structure will ensure that the various "Maisons" maintain their separate, vertical autonomy and product integrity whilst obtaining maximum synergistic benefits from this important strategic acquisition.
Johann Rupert, currently Chairman and Chief Executive of Richemont SA, will remain as Executive Chairman of the Management Board, while continuing as Chief Executive at the holding company level. Alain Dominique Perrin becomes Chief Executive of Richemont SA. Jan du Plessis, Finance Director, will continue to report directly to Mr Rupert.
Richard Lepeu, currently Chief Executive of Cartier, becomes Chief Operating Officer of Richemont. Amongst others, his role will include responsibility for the coordination and development of a number of critically important operational functions such as supply chain management, information technology, logistics and after-sales service.
Guy Leymarie, currently Chief Executive of Alfred Dunhill, succeeds Mr Lepeu to become Chief Executive of Cartier.
Günter Blümlein, previously Chief Executive of LMH, becomes Chief Executive of Richemont's new specialist Watch Division with responsibility for Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne and Officine Panerai.
Recognising the need to coordinate the strategic development of these respective brands, Franco Cologni becomes Executive Chairman of both Cartier and the newly formed Watch Division.
Simon Critchell, currently Chief Executive of Richemont in North America, will move from New York to London to become Chief Executive of Alfred Dunhill and will become a member of the Management Board.
Callum Barton, currently Operations Director of Richemont based in Geneva, will move to New York to become Chief Executive of Richemont North America.
Richemont owns a portfolio of leading luxury goods "Maisons", including Cartier, Montblanc, Alfred Dunhill, Lancel and Van Cleef & Arpels, as well as the prestigious watch manufacturers Jaeger-LeCoultre, Piaget, Baume & Mercier, IWC, Vacheron Constantin, A.Lange & Söhne and Officine Panerai.
Richemont sales for December quarter up by 21 per cent
Richemont, the Swiss luxury goods group, today announced that sales in the Group's third quarter period of October to December 2000 increased by 21%. This growth is on a comparable basis and fully excludes the impact of acquisitions. In particular, it excludes the recent acquisition of the watchmakers Jaeger-LeCoultre, IWC and A. Lange & Söhne, which was completed in December 2000. Richemont will consolidate these companies from 1 January 2001.
Johann Rupert, Chief Executive of Richemont, said, "The growth of 21% experienced during this quarter was very much in line with our expectations and reflects progress across all of the Group's brands. This increase follows growth of 28% in the same period of the previous year, which saw particularly strong sales during the months leading up to the Millennium celebrations."
European sales grew by 20%, in line with the trend seen in the first half year. Sales in Asia grew by 25%, helped by the higher value of the yen. Sales in the Americas region increased by 17% and, whilst benefiting from the relative strength of the dollar against the euro, should be seen against the background of the preceding year's outstanding results.
In terms of product categories, growth was most pronounced in the jewellery and watch segments, which grew by 26% and 25%, respectively. Whilst sales through both the retail network and wholesale channels showed satisfactory growth, the trend seen in recent years, whereby growth in retail sales has exceeded that achieved by the wholesale network, continued during the period.
Richemont owns a portfolio of leading luxury goods brands, including Cartier, Montblanc, Alfred Dunhill, Lancel and Van Cleef & Arpels, as well as the prestigious watch manufacturers Baume & Mercier, IWC, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, Piaget and Vacheron Constantin.
Acquisition of Les Manufactures Horlogères SA Completed
Further to the announcement of 21 July 2000, Richemont is pleased to announce that, following receipt of the necessary regulatory approvals, it has completed the acquisition of Les Manufactures Horlogères SA ("LMH") from Mannesmann AG. The transaction consideration amounted to approximately SFr 2.8 billion.
LMH owns three luxury watch businesses, namely 60 per cent of Jaeger-LeCoultre, 100 per cent of IWC and 90 per cent of A. Lange & Söhne.
Richemont acquired the remaining 40 per cent interest in Jaeger-LeCoultre in July of this year.
Vivendi SA holdings sold
Richemont, the Swiss luxury goods group, announces that it has sold its holding of 17.5 million shares in Vivendi SA in a private transaction. The Group had previously hedged the value of the investment such that the net proceeds of the disposal amount to € 1 175 million. Richemont will report an exceptional gain of € 530 million in its results for the six month period to 30 September 2000 in respect of the disposal.
Richemont Annual General Meeting 2000
At the Annual General Meeting of Compagnie Financière Richemont AG held today in Zug, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 2000.
A dividend of € 24.00 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont AG. The dividend will be payable without deduction of withholding taxes or charges, on 2 October 2000 against presentation of coupon number 44. The dividend represents an increase of some 15 % over the amount paid in the prior year.
During the meeting, the Chairman, Dr Nikolaus Senn, made the following comments as to trading conditions;
Quote
I would like to make a few comments on the Group’s performance in the current financial year. In the context of the announcement of the agreement between Richemont and Mannesmann for the acquisition of the LMH watch brands in July of this year, we announced that Group sales in the quarter to June 2000 had grown by approximately 30%. I can now advise that the positive trend of sales growth has been sustained in the months of July and August, such that for the five month period to end August, Group sales (excluding the incremental impact of acquisitions) grew by approximately 30 per cent. We therefore expect that Richemont’s operating results for the six month period to end September will be very good. These interim results will be announced on 20 November.
As widely understood, a substantial proportion of the Group’s annual sales are realised in the period October to December. In 1999 the performance in this quarter was particularly strong and we obviously cannot predict the level of sales in the months to come. As in the past, we intend to issue a brief trading statement next January in respect of the pre-Christmas period.
Unquote
For its financial year ended 31 March 2000, Richemont reported an increase of 36.8 % in operating profit to € 534.1 million and an increase in attributable profit before exceptional items and goodwill amortisation of 15.9 %.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Van Cleef & Arpels, Alfred Dunhill, Montblanc and Lancel as well as the prestigious haute horlogerie watch manufacturers Vacheron Constantin, Piaget, Officine Panerai and Baume & Mercier. In July of this year Richemont also announced the acquisition of Les Manufactures Horlogères SA, which controls Jaeger-LeCoultre, IWC and Lange & Söhne.
In addition to its luxury goods business, Richemont also holds a 21.1 % interest in British American Tobacco p.l.c., the world’s second largest tobacco company.
Acquisition of Les Manufactures Horlogères SA - Supervisory Board of Mannesmann AG approves transaction
Further to the announcement of 21 July 2000 of its agreement to acquire Les Manufactures Horlogères SA from Mannesmann AG, Richemont announces that this transaction has now been approved by the Supervisory Board of Mannesmann AG. The agreement continues to be subject to certain regulatory clearances and is expected to close by the end of September 2000.
Richemont acquires Les Manufactures Horlogères SA and the outstanding 40 per cent of Manufacture Jaeger-LeCoultre SA
Introduction
Richemont is pleased to announce that it has agreed to acquire Les Manufactures Horlogères SA ("LMH") from Mannesmann AG. LMH owns three luxury watch businesses, namely 60 per cent of Jaeger-LeCoultre, 100 per cent of International Watch Co. ("IWC") and 90 per cent of A. Lange & Söhne.
Richemont also announces that it has acquired from the Audemars Piguet group the 40 per cent interest in Jaeger-LeCoultre not already owned by LMH. Richemont intends to transfer this shareholding to LMH.
The combined cost of the acquisitions on a debt free basis is CHF 3,080 million in cash, comprising CHF 2,800 million for LMH and CHF 280 million for the 40 per cent interest in Jaeger-LeCoultre.
Mannesmann has owned LMH since 1993 and decided to sell the business following the acquisition of Mannesmann by Vodafone AirTouch in February 2000.
Strategic rationale for the transaction
The acquisition represents a major strategic step for Richemont and will strengthen its position as one of the world's leading manufacturers of quality watches. It offers a unique opportunity to acquire an integrated family of watch companies with an excellent manufacturing capability.
LMH's products have a well-deserved reputation for technical excellence and occupy a unique position in the "classical" segment of the market for luxury watches. They complement Richemont's existing portfolio of watch companies which, in addition to Cartier, includes Vacheron Constantin, Piaget, Baume & Mercier and Officine Panerai.
In terms of manufacturing, LMH is a vertically integrated group and a leader in "Haute Horlogerie". Its expertise in manufacturing high value movements adds significantly to Richemont's existing capability in this area.
Richemont's well established worldwide distribution network will open up significant opportunities for Jaeger-Le Coultre, IWC and A. Lange & Söhne in major markets where they have the potential to increase their market share, such as the United States.
LMH has an excellent management team, which shares Richemont's philosophy and has a genuine understanding of the values that underlie luxury watchmaking. This team has built LMH into a very successful business with an outstanding record of sales and profit growth.
Description of LMH and its watch companies
The LMH group comprises the following businesses:
60 per cent of Manufacture Jaeger-LeCoultre SA, together with its wholly-owned French and German distribution companies;
100 per cent of International Watch Co. AG, including a wholly-owned German distribution company; and
90 per cent of Lange Uhren GmbH.
It is intended that the outstanding 40 per cent of Jaeger-LeCoultre, which Richemont has just acquired from the Audemars Piguet group, be transferred to LMH. The Lange family owns the remaining 10 per cent in Lange Uhren GmbH.
In addition, LMH owns a 12.5 per cent shareholding in La Pierette SA (a manufacturer of stones for watch movements) and two other distribution companies for the UK and North American markets.
Jaeger-LeCoultre, IWC and A. Lange & Söhne each have long histories in watch manufacturing dating back to the mid-1800s. The LMH group was formed in 1991 to provide a common platform for the three brands. The brands are nevertheless managed independently with distinct manufacturing facilities, marketing strategies, target customers and brand philosophies.
Jaeger-LeCoultre is the largest of the companies in the LMH group, produces the widest spectrum of products and focuses on the jewellery/fashion and sports/all day watch segments; IWC focuses on sports/all day watches; and A. Lange & Söhne produces watches exclusively for the traditional, classical and collectors' segments. All of the watches sold by the three companies retail for prices at the premium end of the luxury watch market.
The LMH group employs approximately 1,440 people, mostly located in Switzerland and Germany. At 31 December 1999, LMH had net assets (excluding the value of its intellectual property) of approximately CHF 100 million.
Over the three years to 31 December 1999, LMH's sales have grown at a compound annual rate of 19 per cent to CHF 349.4 million. Operating profit before depreciation and amortisation (EBITDA) in 1999 amounted to CHF 80.4 million. Operating profit (EBIT) amounted to CHF 70.8 million.
The LMH companies have continued to show good growth in the six-month period to 30 June 2000. Net sales increased to CHF 197 million in the period, some 25 per cent higher than the comparable period in the prior year, with all three brands progressing well.
(i) Jaeger-LeCoultre
Jaeger-LeCoultre was founded by Antoine LeCoultre in Le Sentier, Switzerland in 1833.
Jaeger-LeCoultre's products can be divided into three main lines: Reverso, Master and Atmos. The Reverso, which was first manufactured in 1931, is a wristwatch that focuses on clear lines and durability. The distinctive feature of the Reverso is the reversible case-back, which can be used for an engraving, miniature art, a second watch or precious stones. Master was first launched in 1992 with the watch Master Grande Taille and has since evolved into a line of models. Atmos is a table clock and was launched in 1933 as the clock "driven by air", using a mechanism based on changes in atmospheric pressure. In 1999 Jaeger-LeCoultre sold approximately 48,000 watches and 3,300 table-clocks.
Jaeger-LeCoultre's unique manufacturing expertise is one of the major strategic attractions of LMH. It produces its components at its own production sites at Le Sentier and Porrentruy in Switzerland, where approximately 900 people are employed.
Jaeger-LeCoultre's products are based on high quality/high-technology manufacturing, with superior craftsmanship in finishing and assembly and the effective combination of traditional design with technical innovation. The brand offers a broad range of watches covering a wide price segment.
The principal markets for Jaeger-LeCoultre are Europe and Asia. Switzerland, Germany and Italy are Jaeger-LeCoultre's largest European markets. In 1999, Jaeger-LeCoultre had 855 points of sale worldwide.
(ii) IWC
IWC was founded by the American-Florentine Aristo Jones in Schaffhausen, Switzerland in 1868.
IWC's best known product range is Da Vinci, an automatic chronograph with perpetual calendar and moon phase. The product range also includes Fliegeruhr/Pilot Watch, GST (the sports line), Portugieser (a marine chronometer) and various complex products, such as II Destriero Scafusia (which contains 750 individually manufactured and hand-finished mechanical components). In 1999, IWC sold approximately 39,000 watches.
The production facilities of IWC are based in Schaffhausen, Switzerland where approximately 360 people are employed.
IWC's largest markets are the Far East, Switzerland and Germany and it has 700 points of sale worldwide.
(iii) A. Lange & Söhne
A. Lange & Söhne was founded by Ferdinand Adolph Lange in Glashütte, Germany in 1845 and was re-established by his great-grandson, Walter Lange, in 1990.
The most important models in A. Lange & Söhne's product range are Lange 1 ( the watch which re-introduced the A. Lange & Söhne name to the watch market in 1994), Datograph and the 1815 range.
Production facilities are located in Glashütte, Germany, where all models are designed, developed and produced. The production process is fully integrated, with all the movements produced in-house. The company employs approximately 180 people.
A. Lange & Söhne's products rely upon craftsmanship used to produce a limited number of handmade watches every year. The product positioning is that of tradition alongside innovation, together with the concept of "Made in Saxony" as distinguished from "Made in Switzerland".
A. Lange & Söhne sold approximately 4,000 watches in 1999. It concentrates on the highest end of the market with its products generally retailing between CHF 10,000 and CHF 300,000. The typical A. Lange & Söhne customer is a connoisseur and watch collector.
Germany, Italy and South East Asia are A. Lange & Söhne's most important markets, with Germany accounting for approximately 50 per cent of total sales. Reflecting the brand's exclusivity, A. Lange & Söhne watches are only distributed through some 50 carefully selected retailers worldwide.
Timing and financing of the acquisitions
The acquisition of LMH is subject to the approval of the Supervisory Board of Mannesmann as well as customary regulatory clearances and is expected to close by the end of September 2000. The acquisition of the outstanding 40 per cent of Jaeger-LeCoultre from the Audemars Piguet group was completed yesterday.
As a result of two recent transactions relating to assets outside Richemont's luxury goods businesses, the current acquisitions will not lead to an increase in the group's net debt position. In June 2000 Richemont received approximately CHF 1.1 billion as a result of the exercise of a put option over one half of its convertible redeemable preference shares in British American Tobacco. In addition, as previously announced, Richemont expects to receive approximately CHF 1.9 billion in September 2000 from the disposal of its interest in Vivendi.
Against the background of the British American Tobacco and Vivendi transactions, and without allowing for any potential benefits resulting from the combination of the LMH and Richemont businesses, the short term dilution in earnings (before the effect of goodwill amortisation) is expected to be insignificant.
Current trading of RichemontThe trend of strong sales growth seen in Richemont's financial year ended 31 March 2000 has continued in the first three months of the current year. Although not necessarily representative of trends for the year as a whole, Richemont's overall sales in the period since the financial year-end have continued to benefit from the generally healthy global economic environment. The group's sales in the first quarter grew by approximately 30 per cent compared to the same period in the prior year.
Comment on the transactionsJohann Rupert, Chief Executive of Richemont said:
"LMH is an excellent business with a remarkable record of sales growth and profitability. Its acquisition represents an outstanding opportunity for us to re-deploy assets into our luxury goods business. We are also delighted that our co-operation with the Audemars Piguet group has enabled us to re-establish Jaeger-LeCoultre under a single owner.
One of the main reasons for the fierce competition for LMH was the quality of its management. Mr Blümlein leads a team of true professionals with many years of experience and institutional knowledge. They have been very successful and we are excited to have them join Richemont.
We are convinced that this acquisition will make a major and positive impact on our group."
Advisers:
Richemont is being advised by Deutsche Bank and Lehman Brothers.
Richemont acquires Stern Group
Richemont, the Swiss luxury goods group, today announced that it has acquired the Stern Group from Orior Holding S.A.
Stern Créations S.A. in Geneva, together with its subsidiaries, Stern Manufacture and Stern Appliques in La Chaux-de-Fonds, in the Jura region of Switzerland, as well as a small French subsidiary, is one of the leaders in the manufacturing of luxury watch dials.
Since the creation of Stern Frères, in 1898, the Stern Group has become one of the essential suppliers of watch components and has among its clients some of the world's most prestigious watch brands. Its vast range of products includes lacquered, precious metal and jewellery dials.
Richemont has expressed the wish for Stern to continue to create and supply dials to the Swiss luxury watch industry. Stern will retain a high level of autonomy within the Richemont Group to enable it to strengthen its partnerships with all its clients.
Richemont and Audemars Piguet announce agreement
Richemont, the Swiss luxury goods group, and Audemars Piguet, the prestigious Swiss watch manufacturer, today announced that they have entered into an agreement to co-ordinate their respective positions and work together in the context of the recently announced proposed sale by Mannesmann of its subsidiary, Les Manufactures Horlogères (‘LMH’).
LMH is the owner of International Watch Co. and Lange & Söhne, together with a 60 per cent interest in Jaeger-LeCoultre. Audemars Piguet collaborates closely with LMH at an industrial level and owns the remaining 40 per cent of the shares in Jaeger-LeCoultre. The agreement does not in any way impact the continued independence of Audemars Piguet.
Richemont and Audemars Piguet have agreed that the terms of their agreement shall remain confidential and, given the pending disposal by Mannesmann of its watch brands, have no further comment to make at this time.
Richemont and Rembrandt Group to redeem further preference shares in British American Tobacco
R & R Holdings SA, the holding company owned jointly by Richemont and Rembrandt Group Limited, has served notice on British American Tobacco of its intention to redeem a second tranche of 60.4 million BAT preference shares in June 2000 at a price of £5.75 per share. This represents one quarter of the total preference shares held by R & R Holdings SA and has an aggregate redemption value of £347 million.
In aggregate, R & R Holdings SA has now served notice on British American Tobacco in respect of one half of its holding of preference shares. The remaining preference shares will be compulsorily redeemed in cash in June 2004 at a price of £6.75 per share, unless previously converted to ordinary shares upon a sale by R & R Holdings to a third party.
Richemont’s share of the aggregate proceeds of the exercise of the 120.8 million preference shares in June 2000 will amount to £463 million
Background information
As a result of the merger of Rothmans International and British American Tobacco which was completed in June 1999, Richemont and Rembrandt Group Limited, through R & R Holdings SA, hold a 35% equity interest in the enlarged BAT. This shareholding comprises a 25% interest in ordinary shares and a 10% interest in the form of 241.7 million convertible redeemable participating preference shares. R & R Holdings SA is held as to two thirds by Richemont and one third by Rembrandt. As provided for in the merger agreement, up to half of the preference shares may be redeemed for cash in June 2000, the first anniversary of completion of the transaction, at a price of £5.75 per share, subject to certain notice requirements.
On 2 December 1999 R & R Holdings SA served notice on British American Tobacco in respect of the first tranche of preference shares eligible for redemption in June 2000. That notice related to one quarter of the preference shares, being 60.4 million shares with an aggregate redemption value of £347 million.
Richemont sales for December quarter up by 28 per cent
Richemont, the Swiss luxury goods group, today announced that sales in the Group's third quarter period of October to December 1999 increased by 28%. Sales have been strong throughout the period but benefited in particular from very strong December sales, which exceeded all expectations.
Sales in the Far East grew by 44%, reflecting the continuing strong economic recovery in that region, together with the benefits of the strength of the Japanese Yen, whilst sales in the Americas region increased by 33%. Sales in Europe grew by 16%, reflecting the return of consumer confidence towards the latter part of the year.
Sales through the wholesale distribution network increased by 18% - in line with the trends seen earlier in the year - whilst sales through the Group's retail network grew by 43%.
Richemont owns an extensive portfolio of some of the world's leading luxury goods brands, including Cartier, Alfred Dunhill, Montblanc, Lancel and Van Cleef & Arpels, as well as the prestigious Swiss watch manufacturers Vacheron Constantin, Piaget and Baume & Mercier.
Announcements in respect of Richemont's shareholdings in Vivendi SA and British American Tobacco plc
Richemont, the Swiss luxury goods group, today issued the following announcements in respect of its shareholdings in Vivendi SA and British American Tobacco plc.
Shareholding in Vivendi fully hedged
In September 1999, Richemont exchanged its 15% interest in Canal+ SA for a 2.9% shareholding in Vivendi SA. Under the terms of that agreement, Richemont agreed not to sell its shareholding for a period of twelve months from the date of the transaction.
Richemont today announced that it has completed a hedging programme, as a result of which it has effectively locked in the value of its shareholding in Vivendi. Richemont intends to dispose of its Vivendi shares and unwind these hedging arrangements in September 2000. As a result, Richemont expects to receive, at that time, aggregate cash proceeds of approximately €1.200 million and report an exceptional gain in respect of this transaction of some €550 million.
Johann Rupert, Chief Executive of Richemont, said:
"When announcing the transaction with Vivendi earlier this year, we clearly signalled our intention to dispose of this investment in order to re-deploy the proceeds in the further development of our core luxury goods business. The hedging programme that we have now completed will provide us with certainty as to the value of our investment in a fast changing business environment, securing for our shareholders an excellent internal rate of return on our investments in the media sector."
Preference shareholding in British American Tobacco partially redeemed for cash
As a result of the merger of Rothmans International and British American Tobacco, Richemont and Rembrandt Group Ltd, through a joint holding company, hold a 35% equity interest in the enlarged BAT. The shareholding comprises 25% in ordinary shares and 10% in the form of 241.7 million convertible redeemable participating preference shares. The joint holding company, R&R Holdings SA, is held as to two thirds by Richemont and one third by Rembrandt.
As provided for in the merger agreement, up to half of the preference shares may be redeemed for cash in June 2000, being the first anniversary of closing, at a price of £5.75 per share, subject to certain notice requirements. In consequence, R&R Holdings SA today served notice to British American Tobacco of its intention to redeem one quarter of the preference shares (in total 60.4 million) in June 2000. The cash proceeds of redemption will therefore amount to £347 million, of which £231.5 million (€365 million) will be attributable to Richemont.
A further quarter of the preference shares (60.4 million) is eligible for redemption on the first anniversary of the merger. Should R&R Holdings SA wish such shares to be redeemed, notice must be given to BAT no later than three months prior to the redemption date of 7 June 2000. Any preference shares not redeemed on the first anniversary are to be compulsorily redeemed in cash on the fifth anniversary of closing in June 2004 at a price of £6.75 per share, unless previously converted to ordinary shares upon a sale to a third party.
Commenting on the decision, Johann Rupert, Chief Executive of Richemont and Chairman of Rembrandt, said:
"When we announced the merger in January of this year, it was clearly stated that Richemont and Rembrandt would have preferred our entire 35% interest in BAT to be in the form of ordinary shares, with full voting rights. In the absence of agreement on that point and as a result of negotiations, we reluctantly accepted that 10% of our interest in the enlarged BAT would be in the form of non-voting preference shares, redeemable at the latest five years after completion of the transaction. However, in exchange for effectively agreeing to become forced sellers in respect of a portion of our shareholding, we insisted on certain protection for our own shareholders. Key amongst these was the right to put a part of our holding of preference shares back to BAT at a fixed price after one year as an insurance against a general collapse of equity markets."
"Contrary to our fears, we have not yet seen a widespread fall in equity markets, but, regrettably, the share prices of tobacco companies have been very adversely impacted by the reaction to one specific legal case in the United States. As a result, the BAT share price has suffered considerably in recent months and we have concluded that, on balance, we should exercise the put option and, in so doing, achieve the protection that we sought at the time of the merger."
"Our confidence in the tobacco business in general, and in BAT in particular, remains undimmed. Martin Broughton and his team have done a superb job in implementing the merger so effectively and in such a short period of time. We continue to believe that the indicated cost savings and other operational and marketing synergies will be fully achieved as planned."
Richemont and Vendôme management and executive board to merge
The Board of Compagnie Financière Richemont AG, the holding company of the Swiss luxury goods group, today announced that it has decided to merge the management and executive board structures of Richemont and its wholly owned subsidiary, Vendôme Luxury Group. This decision reflects the group's long term commitment to the further development of its luxury goods businesses and is consistent with the merger of Rothmans International with British American Tobacco, as well as the disposal of Richemont's 15% shareholding in Canal+, earlier this year.
A number of senior group executives, who previously served on the Board of Vendôme Luxury Group, will be joining the Board of Richemont SA - the Luxembourg subsidiary of Compagnie Financière Richemont AG - which in future will serve as Management Board to the group.
Mr Alain Dominique Perrin becomes Senior Executive Director of the Richemont group, with responsibility for the development and implementation of the group's marketing, manufacturing and commercial strategy. As such, all brand managers within the group will either directly or indirectly report to Mr Perrin. Mr Perrin will be reporting to Mr Johann Rupert, Chief Executive of Richemont.
Mr Franco Cologni becomes Executive Director with responsibility for the strategic development of the group's watch businesses, in particular its specialist watch brands Piaget, Baume & Mercier, Vacheron Constantin and Panerai, as well as Chairman of the group's Product Committee.
The existing office of Vendôme Luxury Group in Geneva will, in future, be responsible for the provision and coordination of certain central services to all operating companies in the Richemont group - in particular in areas such as financial management, information technology, treasury management and related logistical services. Mr Callum Barton, currently Managing Director of Alfred Dunhill, will relocate from London to Geneva as Operations Director to head up this function and will be reporting to Mr Jan du Plessis, Finance Director of Richemont.
Mr Guy Leymarie, who currently holds a senior executive position with Cartier in Paris, will move to London to succeed Mr Barton as Managing Director of Alfred Dunhill. Mr Barton, however, will retain his involvement with the brand by assuming the Chairmanship of Alfred Dunhill in a non-executive capacity, whilst Mr Richard Dunhill, currently Chairman, has been appointed Life President of Alfred Dunhill.
Mr Michael Bennett, currently Finance Director of Vendôme Luxury Group, who had previously indicated his intention to retire, has agreed to stay on for a further period of at least twelve months to assist Mr Barton in his new role and, in particular, to advise the group on the establishment of a central treasury function. The Board of Richemont today expressed its thanks and appreciation to Mr Bennett for his valuable contribution to the Group over almost thirty years.
Messrs. Perrin, Cologni, Barton and Leymarie, as well as Mr Richard Lepeu (Managing Director of Cartier), Mr Norbert Platt (Managing Director of Montblanc), Mr Albert Kaufmann (General Counsel) and Mr John P Rupert (Manufacturing Director), will all be appointed to the Board of Richemont SA - the group's Management Board.
The above appointments, as well as certain consequential organisational changes, will be effective by the end of January 2000 and will coincide with the previously announced retirement of Mr Joseph Kanoui, Chairman and Chief Executive of Vendôme.
Mr Alan Quasha and Lord Douro, currently non-executive directors of Richemont SA and Vendôme Luxury Group SA, respectively, have been invited to join the Board of Compagnie Financière Richemont AG as non-executive directors.
Richemont also today announced good results in respect of the six-month period ended 30 September 1999. Sales by the group's luxury goods businesses increased by 20% to € 1 263.4 million, whilst operating profit grew by 36% to € 205.9 million.
Richemont Annual General Meeting 1999
At the Annual General Meeting of Compagnie Financière Richemont AG held today in Zug, the shareholders approved the results for the year, including the proposals of the Board of Directors for the appropriation of retained earnings at 31 March 1999.
A dividend of £ 13.50 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont AG. The dividend will be payable without deduction of withholding taxes or charges, on 4 October 1999 against presentation of coupon number 43. The dividend represents an increase of 17.4% over the amount paid in the prior year.
During the meeting, the Chairman, Dr. Nikolaus Senn, made the following comments as to trading conditions and the change of the Group's reporting currency;
"I would like to say a few words with regard to the performance of our luxury goods business during the first few months of the current year. I am pleased to report that the positive trends seen in the latter part of the last financial year have broadly continued. In the Far East, in particular, the recovery in demand for the Group's luxury products has been sustained, with Japan continuing to perform well. Operating profit has reflected the satisfactory performance in terms of sales and, although the first months of the year are not necessarily a reliable indicator of the pattern for the year as a whole, we currently expect that Richemont's luxury goods business will once again produce good results.
Richemont's results in recent years have been significantly impacted by exchange rate fluctuations. The introduction of the Euro on 1 January this year has provided Richemont with an opportunity to adopt a reporting currency which more appropriately reflects the underlying nature of the Group's businesses. In consequence, your board has taken the decision to report Richemont's results in future in Euros rather than in sterling. We believe that this will serve as a better yardstick of performance for the group's underlying luxury goods businesses given the strong European element of the Group's sales and the predominantly Euro and Swiss franc denominated cost base of the Group's manufacturing operations. We intend that the Group's results for the six months ending 30 September 1999 will, for the first time, be presented in Euros. These results will be made public during the course of November."
For its financial year ended 31 March 1999, Richemont reported an increase of 19.6% in attributable profit to £ 461.8 million before exceptional items and goodwill amortisation.
Richemont is a Swiss luxury goods group. The Group owns a portfolio of leading international brands including Cartier, Alfred Dunhill, Montblanc and Lancel as well as the prestigious Swiss watch manufacturers Vacheron Constantin, Piaget and Baume & Mercier. In May of this year it also announced the acquisition of a controlling interest in Van Cleef & Arpels, one of the world's leading high-jewellery brands.
In addition, to its luxury goods business, Richemont also holds investments in the tobacco and direct marketing industries. It's tobacco interests comprise a 23.3% holding in British American Tobacco p.l.c., the world's second largest tobacco company.
Announcement from Vendôme Luxury Group
After more than 25 years at the head of Vendôme Luxury Group and its predecessors, notably the Cartier Group of companies, Joseph Kanoui has decided that it is time to step down as Chairman and CEO of Vendôme Luxury Group SA in order to devote more time to other tasks within the Richemont Group. Johann Rupert has acceded to Mr Kanoui's request to be relieved of his responsibilities in respect of Vendôme Luxury Group with effect from 31 January 2000.
Mr Rupert has agreed to replace Mr Kanoui as Chairman and CEO of Vendôme Luxury Group with effect from 1 February 2000.
Mr Kanoui will continue to have an active role within the Richemont Group as a Director of Compagnie Financière Richemont AG and has been nominated as Chairman of its Investment Committee.
Johann Rupert acknowledges the Richemont Group's enormous debt of gratitude towards Mr Kanoui for the part which he has played in delivering an unbroken record of growth in the Group's luxury goods interests, and is confident that Joseph Kanoui will continue his valuable contribution to the growth of the Richemont Group in his new strategic role.
In recognition of Mr Kanoui's long association and close links with the Rupert family, he has been invited to become a director of the family holding company.
Richemont sells Canal+ interest to Vivendi
Richemont announces that it has entered into an agreement with Vivendi SA in terms of which Richemont has agreed to dispose of its 15 per cent investment in Canal+ SA in exchange for a 2.9 per cent interest in Vivendi. The transaction values Richemont's stake in Canal+ at 1.3 billion Euros. Canal+ is Europe's largest pay television operator. Vivendi, which already holds a 34 per cent interest in Canal+, is a world leader in utilities and a major player in the construction, property and communication industries. The company has a market capitalisation of some 42 billion Euros.
Richemont acquired its interest in Canal+ following the merger of its pay television interests in Scandinavia, the Benelux and Italy with Canal+ in 1997. The current transaction provides Richemont with considerably greater liquidity than its existing investment in Canal+, although Richemont has agreed with Vivendi not to dispose of its shares for a period of 12 months.
Johann Rupert, Chief Executive of Richemont, said: "The transaction allows Vivendi to consolidate its position as the largest shareholder in Canal+, whilst allowing Richemont an opportunity to participate in the growth of Vivendi for as long as we continue to hold the shares. Whilst Richemont has had an excellent return on its investment in Canal+, this transaction will permit us in due course to re-deploy the proceeds in the further development of our core luxury goods business."
Richemont will receive 17 500 000 shares in Vivendi in exchange for its 18 816 636 shares in Canal+. At the close of business on 21 July 1999, Canal+ shares were quoted at 64.50 Euros per share, valuing Richemont's existing holding at 1 213.7 million Euros. Vivendi shares closed at 76.70 Euros, valuing the aggregate consideration at 1 342.2 million Euros.
The transaction is subject to the approval of shareholders in Vivendi at an extraordinary general meeting, which will be held during September 1999.
Compagnie Financière Richemont AGRigistrasse 2
6300 Zug
Switzerland
Tel: (0041) 41 710 3322
Fax: (0041) 41 711 7102
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Richemont owns a unique portfolio of some of the world's best known luxury goods brands including Cartier, Alfred Dunhill, Montblanc and Lancel, together with the prestigious Swiss watch brands Vacheron Constantin, Piaget and Baume & Mercier. Richemont also recently acquired a controlling interest in Van Cleef & Arpels. In addition to its luxury goods interests, Richemont holds an effective interest of 23.3 per cent in British American Tobacco p.l.c.
British American Tobacco and Rothmans International merger completed
British American Tobacco and Rothmans International announce that the merger of the two companies was completed this morning, when British American Tobacco issued 604,336,627 Ordinary Shares and 241,734,651 Convertible Preference Shares in consideration for the acquisition of Rothmans International and the Ordinary Shares were admitted to the official list of the London Stock Exchange.
As a result, Compagnie Financière Richemont AG and Rembrandt Group Limited together indirectly own 35 per cent of the fully diluted ordinary share capital of British American Tobacco, comprising 27.8 per cent of the issued ordinary share capital and 100 per cent of the Convertible Preference Shares. The Richemont and Rembrandt interests are held jointly through R & R Holdings S.A., a Luxembourg company, which is two-thirds owned by Richemont and one-third by Rembrandt.
Bill Ryan, formerly Chief Executive of Rothmans International, has joined the British American Tobacco Board as Deputy Managing Director. Johann Rupert, Chief Executive of Richemont and Chairman of Rembrandt, and Jan du Plessis, Finance Director of Richemont, have joined the Board as non-executive Directors.
Commenting on the completion of the merger following the receipt of all necessary regulatory clearances, Martin Broughton, Chairman of British American Tobacco, said "I am delighted that we have completed the merger within the very demanding timetable set for the end of the second quarter. Today's announcement is a tribute to the people in both companies who have worked with such enthusiasm to complete the merger as quickly as possible. I am confident that their continued dedication will ensure that the work we have already done in the planning process will result in the successful integration of the two companies."
Richemont acquires 60 per cent interest in Van Cleef & Arpels
Richemont, the Swiss tobacco and luxury goods group, announces that it has acquired a 60 per cent interest in Van Cleef & Arpels, one of the world's most prestigious and widely recognised luxury goods brands. Richemont's acquisition has been made in conjunction with Fingen SpA, the Italian clothing and property group, who will own 20 per cent of the company. Certain members of the Arpels family, heirs to Monsieur Claude Arpels, will continue to hold a 20 per cent interest.
Van Cleef & Arpels was founded in 1906 and is one of the world's leading manufacturers and retailers of high jewellery, jewellery and watches. Van Cleef & Arpels owns eight stores in France, the United States, Switzerland, Monaco and the United Kingdom with a further 34 exclusive boutiques, located mainly in Asia. The transaction (which includes the settlement of bank borrowings) values Van Cleef & Arpels at some SFrs 460 million.
Johann Rupert, Chief Executive of Richemont, said, "The acquisition of the shareholding in Van Cleef & Arpels offers significant long-term potential for growth. We are happy that members of the Arpels family wished to maintain their involvement in the company. This will help to ensure the tradition of this unique company."
Richemont, through its Vendôme Luxury Group subsidiary, owns a broad portfolio of some of the world's leading luxury goods brands. These include Cartier, Alfred Dunhill, Montblanc and Lancel as well as the prestigious Swiss watch manufacturers Piaget, Baume & Mercier and Vacheron Constantin.
COMPAGNIE FINANCIÈRE RICHEMONT AGRIGISTRASSE 2 CH-6300 ZUG SWITZERLAND
TELEPHONE 041 710 33 22
TELEFAX 041 711 71 02
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In addition to its interests in luxury goods, Richemont owns 66.7 per cent of Rothmans International, the world's fourth largest international tobacco company, a 15 per cent interest in Canal+, Europe's leading pay-television operator and a 49 per cent interest in Hanover Direct, a US catalogue and internet based retailer. In January 1999, Richemont announced plans for the merger of Rothmans International with British American Tobacco to form the world's second largest tobacco company. The merger with BAT is scheduled for completion in the second quarter of 1999. Following the merger, Richemont will have an effective interest of 23.3 per cent in the share capital of the enlarged BAT.
Lehman Brothers acted as financial advisors to Richemont in this transaction.
Richemont completes repurchase programme
On 25 February 1999, Richemont announced proposals to initiate a buy-back of up to 100 000 units (or some 2% of its share capital) in the context of a share option scheme to be introduced for employees within the group.
Richemont is pleased to announce that it has completed the repurchase programme, having acquired the 100 000 units in the period up to 23 April 1999.
Shareholder meetings approve merger
At the extraordinary general meeting of British American Tobacco p.l.c. ('BAT') and the general meetings of Rembrandt Group Limited and its publicly quoted controlling companies held on Thursday 8 April 1999, the resolutions required to give effect to the merger of Rothmans International BV and BAT were passed by the requisite majorities.
The merger is still subject to certain regulatory approvals. All parties expect completion of the merger to take place during the current quarter. A further announcement will be made in due course.
Richemont announces unit buy-back scheme
The Board of Richemont announces that it has approved the implementation of a unit buy-back scheme. The units will be held in treasury for the purposes of a long-term option scheme to be introduced primarily for the benefit of management within the group's Vendôme Luxury Group subsidiary. A maximum of 100 000 units will be repurchased, representing just under 2.0 per cent of the 'A' units in circulation. It is anticipated that the buy-back will be effected from time to time over the coming six month period through the purchase of units on the Swiss market or through the purchase of depository receipts on the Johannesburg Stock Exchange. No second trading line will be introduced on the Swiss Stock Exchange as a consequence of the offer.
Rothmans International and British American Tobacco in £13BN merger
The Board of Compagnie Financière Richemont AG ('Richemont') announces that Richemont and Rembrandt Group Limited ('Rembrandt') have reached agreement with British American Tobacco p.l.c. ('British American Tobacco') on the terms of a proposed merger of their combined interests in Rothmans International BV ('Rothmans') with British American Tobacco.
Rothmans is presently owned as to two thirds by Richemont and as to one third by Rembrandt. Following the merger, Richemont and Rembrandt will hold a combined 35 per cent. interest in the enlarged British American Tobacco. The 35 per cent. interest will be held by Richemont and Rembrandt in the same proportion as their existing holdings in Rothmans.
The Board believes that Richemont's interests are best served by participating in a larger tobacco business which will have enhanced market positions and a greater scale of operations. Through its shareholding in the enlarged British American Tobacco, Richemont will, together with Rembrandt, retain an investment in the global tobacco industry for the long term and will be able to benefit from the future growth and synergies arising from the combination of British American Tobacco and Rothmans. In the light of the intended dividend policy of the enlarged British American Tobacco, Richemont and Rembrandt will also benefit from the strong cash flow of the combined group.
The joint announcement issued today by Richemont, Rembrandt and British American Tobacco on the Swiss, Johannesburg and London stock exchanges can be downloaded as a pdf document (190 KB).
Richemont Annual General Meeting 1998
At the Annual General Meeting of Compagnie Financière Richemont AG held today in Zug, the shareholders approved the results for the year, including the Proposals of the Board of Directors for the appropriation of retained earnings at 31 March 1998.
A dividend of £ 11.50 per Richemont unit will be paid to unitholders by Richemont SA, Luxembourg, a wholly-owned subsidiary of Compagnie Financière Richemont AG. The dividend will be payable, without deduction of withholding taxes or charges, on 28 September 1998 against presentation of coupon number 42. The dividend represents an increase of 22.3% over the amount paid in the prior year.
Regarding the Group’s trading performance in the current financial year, the Chairman, Dr. Nikolaus Senn said:
“In the light of the turbulence in world financial markets together with the economic difficulties facing a number of countries, in particular Russia and in the Far East, I would like to say a few words regarding the performance of Richemont’s tobacco and luxury goods businesses in the first few months of the current financial year.
Rothmans International’s operating profit in constant currency terms has remained broadly in line with the results of last year. This has been achieved notwithstanding a slight reduction in the volume of cigarettes sold as well as some margin pressure arising from the higher cost of imported raw materials in certain countries. However the non-recurrence of the windfall excise duty gain in Australia reported last year, together with the adverse currency impact arising on the consolidation of the results into sterling, has resulted in tobacco operating profit in sterling terms being below the level achieved last year.
I am happy to report that, given the difficult environment in Far Eastern markets, our luxury goods businesses are performing well and to our satisfaction. Whilst Hong Kong and certain other Far Eastern markets have shown a considerable downturn in sales, this has been compensated to some extent by growth in Japan. Continued good growth in Europe and North America has more than offset the downturn in Asia, however, resulting in a modest improvement in overall sales of luxury products. Whilst gross margins have been maintained, Vendôme’s operating profit has nonetheless been impacted by planned increases in marketing and other operating expenditure.
Overall, at the Richemont attributable earnings level, results for the year to date have not matched the strong performance in the comparable period last year. However, for the year as a whole – barring no further deterioration in financial and economic conditions world-wide – the Board expects that Richemont’s attributable earnings will be broadly in line with those of the prior year.”
The Annual General Meeting re-elected the existing directors and appointed two new Directors to the Board: Mr. Léo Deschuyteneer, a director of the Belgian investment company Sofina SA, and Mr. Ernst Verloop, a former Director of Rothmans International BV and Unilever NV.
For its financial year ended 31 March 1998, Richemont reported an increase of 27.4% in attributable profit to £ 386.0 million before exceptional items and goodwill amortisation.
Richemont is a Swiss-based tobacco and luxury goods group. It is managed with a view to the profitable long-term development of successful international brands. It is the ultimate parent of a family of some of the world’s leading consumer brands.
Richemont’s tobacco interests are held through Rothmans International, the world’s fourth largest multinational tobacco company. Its international brands include Rothmans, Peter Stuyvesant, Dunhill and Winfield. In addition, Rothmans International markets a range of regional and local brands around the world.
Richemont’s luxury goods brands are held through Vendôme Luxury Group. Vendôme owns a portfolio of leading international brands including Cartier, Alfred Dunhill, Montblanc and Lancel as well as the prestigious Swiss watch manufacturers Vacheron Constantin, Piaget and Baume & Mercier.
In addition, to its tobacco and luxury goods businesses, Richemont holds investments in the pay television and direct marketing industries.
Vendôme Luxury Group - minority buy-out effective
Compagnie Financière Richemont AG announces that the buy-out of the minority unitholders' interests in Vendôme Luxury Group ("Vendôme") became effective earlier today following the registration of the Order of the High Court of Justice in England and Wales sanctioning the Scheme of Arrangement in respect of Vendôme PLC. In consequence of the transaction, Vendôme will become a wholly-owned subsidiary of Richemont. The consideration for the buy-out of the 30% of Vendôme not previously owned by Richemont amounts in total to £ 1 036 million. This will be financed out of the group's own resources, through the issue of loan notes and through drawdowns under a syndicated loan facility led by Deutsche Bank AG, London. Payments will be made to Vendôme unitholders on 8 April 1998.
Result of Court Meeting and Extraordinary General Meetings
On 29 January, 1998, a document was sent to Unitholders of Vendôme detailing a recommended proposal on behalf of New VLG S.A., an indirect wholly owned subsidiary of Compagnie Financière Richemont AG, to acquire the interests the interests of the Minority Unitholders in Vendôme. Implementation of the Proposal requires, inter alia, the approval of the holders of Vendôme Luxury Group PLC shares (other than New VLG S.A.) at a meeting convened by the Court and the passing of resolutions at Extraordinary General Meetings of both Vendôme Luxury Group PLC and Vendôme Luxury Group SA.
At the Court Meeting and the Extraordinary General Meetings held yesterday, the resolutions were passed by the requisite majorities.
Therefore, subject to receiving the sanction of the UK Scheme, forming part of the Proposal, by the Court and the other conditions of the Proposal being satisfied or waived, it is expected that the Proposal will become effective and the Units will be delisted on 25 March, 1998. Under the expected timetable, the registration of transfers of Units will be suspended from 3.00pm (London time) on 19 March, 1998. At that time, the trading of the Units on both the London and Luxembourg stock exchanges will be suspended.
It is expected that the Special Dividend of 5p (net) per Vendôme Unit (or its Swiss Franc equivalent of SFr 0.1524) payable on implementation of the Proposal will be paid on 31 March, 1998 to Unitholders registered at the close of business of 6 March, 1998 and that the consideration under the Proposal will be dispatched by not later than 8 April, 1998.
Terms defined in the document shall have the same meaning in this announcement
Recommended proposal to acquire the minority units of Vendôme Luxury Group
Introduction
Further to the announcement made by Compagnie Financière Richemont AG ("Richemont") on 28th November, 1997, the Boards of Richemont and Vendôme Luxury Group ("Vendôme") announce a recommended proposal ("the proposal") under which a wholly owned subsidiary of Richemont, New VLG SA ("New VLG"), will acquire the interests of all the minority unitholders of Vendôme for 495p per unit in cash.
In addition, Richemont has agreed that Vendôme will pay a special interim dividend (the "Special Dividend") of 5p (net) per Vendôme unit to all Vendôme unitholders, payable on implementation of the proposal. Richemont has also agreed to provide a loan note alternative for the minority unitholders and modified the condition in Richemont's announcement dated 28th November, 1997 relating to material adverse change.
New VLG owns 488,371,453 Vendôme units, representing 70 per cent. of Vendôme. The directors of Richemont, Richemont SA and New VLG own or control 225,000 Vendôme units and have options to subscribe for 330,000 Vendôme units pursuant to the Vendôme Executive Share Option Scheme.
The price of 495p per unit represents a premium of 26 per cent. over the closing middle market Vendôme unit price of 393.5p on 27th November, 1997, the day prior to the announcement that Richemont had approached the Board of Vendôme to seek its support for the proposal, and a premium of 40.4 per cent. over the closing middle market Vendôme unit price of 352.5p on 25th November, 1997, the day prior to the announcement of Vendôme's interim results for the 6 months to 30th September, 1997. The price of 495p represents an exit multiple of 18.7 times Vendôme's earnings per unit for the year ended 31st March, 1997. It values the whole of Vendôme at £3,454 million and the 30 per cent. minority holdings at £1,036 million.
Because of the involvement of a number of members of the Board of Vendôme with Richemont, the Board of Vendôme appointed a committee of Independent Directors consisting of Lord Duoro (Chairman), Christopher Balfour, Michael Wilson, Donald Parr and Leo Deschuyteneer to consider Richemont's proposal on behalf of the minority unitholders. The Independent Directors appointed Schroders and Hambros as financial advisers and SBC Warburg Dillon Read and Panmure Gordon as brokers.
Background to the proposalVendôme was created as a separately listed luxury goods company when Richemont reorganised its tobacco and luxury goods interests in 1993. Richemont has owned its 70 per cent. interest since that date.
In forming their conclusions on the underlying value of Vendôme, the Independent Directors have taken into account the individual performance of, and prospects for, each of the businesses within Vendôme. They have also taken into account the uncertainties arising from the large part of Vendôme's business which depends on Far Eastern, and in particular Japanese, consumers. Notwithstanding the views expressed on current trading at the time of the interim results, the Independent Directors recognise that there is continuing uncertainty in the region and Vendôme may, as a consequence, suffer some deterioration in trading conditions, the extent of which it is not possible to predict with certainty at this time.
The Independent Directors also considered a number of other factors, including: Richemont's position as the majority, long-term unitholder of Vendôme; that, at the time of its original announcement, Richemont stated that it would only proceed with the recommendation of the Independent Directors; the improvements made to the terms of the proposal (see above) since Richemont's original announcement on 28th November, 1997; and the possible implications for Vendôme's unit price in the absence of the proposal.
In formulating its proposal, Richemont also took account of the increasingly uncertain environment in which Vendôme operates and the fact that many of the brands within Vendôme's portfolio would require significant investment over the next few years. Richemont believes that its investment plans for Vendôme can be implemented more effectively, and the interests of all Vendôme's unitholders would be better served, if Vendôme ceases to be publicly quoted.
RecommendationThe Independent Directors, who have been so advised by Schroders, having taken into account the factors referred to above, consider that the terms of the proposal are fair and reasonable so far as the minority unitholders are concerned. Accordingly, the Independent Directors recommend minority unitholders to approve the necessary resolutions to implement the proposal. In providing its advice to the Independent Directors, Schroders has taken into account the commercial assessments of the Independent Directors.
The proposalImplementation of the proposal will involve the following principal steps, which will be interconditional:
- the shares of Vendôme Luxury Group PLC ("Vendôme PLC") and Vendôme Luxury Group SA ("Vendôme SA"), which are twinned and trade as a unit, will be de-twinned through appropriate amendments to the constitutions of Vendôme PLC and Vendôme SA;
- through a UK Scheme of Arrangement, Vendôme PLC will become wholly owned by New VLG in consideration of cash payments to the minority unitholders (the "UK Scheme");
- Vendôme SA will sell its entire undertaking to New VLG for cash and the cash proceeds will be returned to Vendôme's unitholders through a liquidation of Vendôme SA.
The aggregate cash payments will result in 495p per unit being paid to the minority unitholders. In addition, Vendôme unitholders will be entitled to receive the interim dividend of 3.7p (net) per unit declared by the Vendôme Board on 26th November, 1997 and payable on 30th January, 1998 and, on implementation of the proposal, the Special Dividend.
The Special Dividend will be paid by Vendôme, as soon as reasonably practicable after implementation of the proposal, to unitholders registered at the close of business on a date (to be specified in the formal documentation) shortly before implementation of the proposal. Unitholders will be entitled to elect to receive the Special Dividend from Vendôme PLC or from Vendôme SA, but not from both. The Special Dividend to be paid by Vendôme PLC will be 5p per share (excluding any associated UK tax benefits) and the Special Dividend to be paid by Vendôme SA will be the Swiss Franc equivalent of 5p per share (together with the associated UK tax benefit). The formula for calculating the exchange rate to be used for this purpose and the date by which dividend elections are to be received will be set out in the formal documentation.
Implementation of the proposal will require, inter alia, the passing of special resolutions at Extraordinary General Meetings of both Vendôme PLC and Vendôme SA; the approval of the minority unitholders at a meeting of Vendôme PLC convened by the Court1 ; and the sanction by the Court of the UK Scheme.
In view of Richemont's controlling interest in Vendôme and its interest in the proposal, it will not vote at the Vendôme PLC Court meeting nor the Vendôme PLC Extraordinary General Meeting. The resolution to be proposed at the Extraordinary General Meeting of Vendôme SA will not become effective unless approved by a seventy-five per cent. majority by value of those minority unitholders who vote.
Further terms and conditions of the proposal are set out in the Appendix.
Loan note alternativeUnitholders will be able to elect to receive loan notes as an alternative to some or all of the cash which they would otherwise be entitled to receive under the proposal, on the basis of £4.95 nominal of loan notes for each Vendôme unit.
The loan notes, which will be governed by English law, will be unsecured obligations of New VLG, guaranteed by Richemont and Richemont SA, and will bear interest, payable in arrears on 31st March and 30th September in each year, at a rate of 6 month LIBOR less 0.75 per cent. The first interest payment will be on 30th September, 1998 in respect of the period from the date of issue. Loan notes will be redeemable at par at the option of the holder on 31st March, 1999 and on any interest payment date thereafter. Any loan notes outstanding on 31st March, 2004 will be redeemed at par (together with any accrued interest) on that date. The loan notes will be issued in integral multiples of £1 nominal. No fractional entitlements will be issued. The loan notes will be freely transferable but will not be listed or dealt in on any stock exchange.
FinancingNew VLG has entered into loan agreements with Deutsche Bank for the full amount of the cash consideration.
Illustrative financial effects of the proposalImplementation of the proposal, ignoring the effect of the Special Dividend, would have the following illustrative effects on capital value and income:
| Note | ||
|---|---|---|
| Value of 100 units under the proposal | £495.00 | |
| Market value of 100 units | (1) | £393.50 |
| A premium of | £101.50 | |
| This represents an increase of: | 26% | |
| Income | ||
| Gross interest income on £495 in cash | (2) | £33.00 |
| Increase in income | (3) | £13.00 |
| This represents an increase of: | 154% |
Notes:
- The market value of units is based on the middle market quotation for units on the London Stock Exchange of 393_p per unit, derived from the London Stock Exchange Daily Official List as at the close of business on 27th November 1997, being the date immediately prior to the announcement that Richemont had approached the Board of Vendôme to seek its support for possible proposals.
- The cash consideration is assumed to be reinvested to yield, on an annualised basis, 6.67 per cent., being the gross redemption yield for UK Gilts redeemable in November 2004 as derived from the Financial Times published on 27th November, 1997, being the date immediately prior to the announcement that Richemont had approached the Board of Vendôme to seek its support for possible proposals.
- The gross dividend income on units is based on the gross dividend of 13.0p per unit paid in respect of the year ended 31st March, 1997, assuming a UK dividend election.
- The above information takes no account of the effect of any taxation.
Information on Vendôme
Companies in the Vendôme group design, manufacture, market and distribute a range of luxury products including jewellery, watches, writing instruments, leather goods, menswear and accessories, fragrances, lighters and ladies' fashions and accessories. The principal brand names owned by Vendôme are Cartier, Alfred Dunhill, Montblanc, Piaget, Baume & Mercier, Vacheron Constantin, Lancel and Chloé.
On 26th November, 1997 Vendôme published its interim results for the six months ended 30th September 1997. For this period, Vendôme had net turnover of £693.1 million (1996: £703.6 million), operating profit of £114.1 million (1996: £109.8 million) and profit attributable to unitholders of £84.3 million (1996: £83.5 million). Earnings per unit were 12.1p (1996: 12.0p).
An interim dividend of 3.70p (net) per unit (1996: 3.62p) was declared on 26 November, 1997 and will be paid on 30th January, 1998.
Each Vendôme unit comprises one share in Vendôme PLC twinned with one share in Vendôme SA. The units are listed on the London and Luxembourg Stock Exchanges.
Information on Richemont
Richemont is an industrial holding company based in Switzerland and is quoted on the Swiss Stock Exchange. Richemont depository receipts are traded on the Johannesburg Stock Exchange and over the counter in New York and London. Richemont has a market capitalisation of SF8,300 million (£3,512 million).
In addition to its 70 per cent. interest in Vendôme, Richemont's principal business interests are:
- Rothmans International, in which it has a two-thirds interest. Companies in the Rothmans International group manufacture, distribute and sell a wide range of well-known brands of cigarettes, cigars and smoking tobaccos throughout the world. Principal trade marks owned or controlled by Rothmans International include Rothmans, Peter Stuyvesant, Dunhill, Craven "A" and Winfield. The remaining one-third of Rothmans International is owned by Rembrandt Group Limited.
- Sigma Canal+, a company in which Richemont has a 15 per cent. interest. Canal+ is Europe's leading pay television group, broadcasting via a combination of terrestrial, cable and satellite methods. Canal+ has a market capitalisation of FF31,874 million (£3,217 million).
Richemont's interim results for the six months ended 30th September, 1997 were announced on 1st December, 1997. For this period, Richemont had net turnover of £2,316.3 million (1996: £2,343.6 million), operating profit of £564.2 million (1996: £466.2 million) and profit attributable to shareholders of £200.6 million (1996: £143.3 million). Earnings per share were £34.94 (1996: £24.96). The above figures are stated before amortisation of goodwill and exceptional items.
Intentions for Vendôme and its employees
The Board of Vendôme has been informed by Richemont that, following the implementation of the proposal, Richemont intends that the businesses of Vendôme would continue to remain a principal investment of the Richemont group through New VLG. The existing rights, including pension rights, of all employees of Vendôme will be fully safeguarded.
Vendôme's Executive Share Option Scheme
Options granted under Vendôme's Executive Share Option Scheme will, to the extent not exercised, lapse on implementation of the proposal. Following implementation of the proposal, Richemont intends to introduce appropriate new long-term executive incentive arrangements for Vendôme.
Indicative timetable
It is expected that formal documentation will be sent to Vendôme's unitholders by the end of January. On this basis, unitholder meetings of Vendôme PLC and Vendôme SA are expected to take place in February followed by the Court hearing in March. Implementation of the proposal is expected to take place by the end of March with consideration posted to unitholders in April.
A detailed timetable will be included in the formal documentation to be posted to unitholders.
In respect of this transaction, Cazenove & Co. are acting as brokers to Richemont.
Enquiries
For Richemont
| Johann Rupert | Chief Executive | +44 171 491 0836 |
| Jan du Plessis | Finance Director | +44 171 499 2539 |
| Eloy Michotte | Executive Director | +44 171 499 2539 |
| Nigel MeekPhilip Mastriforte | Deutsche Morgan Grenfell | +44 171 545 8000 |
| Jem Miller Caroline Sturdy |
Lowe Bell Financial | +34 7 1362 357 or +44 836 298811 +44 171 353 9203 |
For Vendôme
| Lord Douro | Deputy Chairman | +44 171 838 8500 |
| Robert SwannellTessa Bamford | Schroders | +44 171 658 6000 |
| Michael Sorkin | Hambros | +44 171 480 5000 |
| Alan Parker | Brunswick Public Relations | +44 171 404 5959 |
This announcement has been approved for the purposes of Section 57 of the Financial Services Act 1986 by Morgan Grenfell & Co. Limited ("Deutsche Morgan Grenfell"), J. Henry Schroder & Co. Limited ("Schroders") and Hambros Bank Limited ("Hambros") which are regulated by The Securities and Futures Authority Limited. Deutsche Morgan Grenfell is acting for Richemont in relation to this matter and is not advising any other person. Accordingly, Deutsche Morgan Grenfell will not be responsible to anyone other than Richemont for providing the protections afforded to customers of Deutsche Morgan Grenfell. Schroders and Hambros are acting for Vendôme in relation to this matter and are not advising any other person. Accordingly, Schroders and Hambros will not be responsible to anyone other than Vendôme for providing the protections afforded to customers of Schroders and Hambros.
APPENDIX
Conditions and further terms of the proposal
The proposal will include the de-twinning of the shares of Vendôme PLC and Vendôme SA. The proposal will also include:
- in respect of Vendôme PLC, a scheme of arrangement pursuant to section 425 of the Companies Act 1985 (the "UK Scheme") under which the shares of Vendôme PLC held by the minority will be cancelled or transferred in consideration of cash paid or, as the case may be, loan notes issued by New VLG; and
- in respect of Vendôme SA, the sale of its whole undertaking to New VLG for cash and the simultaneous liquidation of Vendôme SA resulting in the return of the cash proceeds of the sale to the shareholders of Vendôme SA,
on the basis that the total of the above cash payments will be 495p per unit.
The Vendôme PLC shares and the Vendôme SA shares will be acquired free from all liens, charges and encumbrances and together with all rights attached thereto including the right to receive all dividends and other distributions (if any) declared, made or paid hereafter, but excluding the interim dividend of 3.7p (net) per unit announced on 26th November 1997 and the Special Dividend payable on implementation of the proposal.
The proposal will comply, so far as applicable, with the rules and regulations of the London and Luxembourg Stock Exchanges and the provisions of the City Code on Takeovers and Mergers.
The UK Scheme will only by implemented if the following conditions (the "UK Scheme Conditions") are satisfied or, in the case of conditions (v) and (vi), waived:
- the passing at an Extraordinary General Meeting of Vendôme PLC of such resolutions as may be necessary to approve, implement and effect the UK Scheme and appropriate amendments to the Articles of Association of Vendôme PLC to effect de-twinning of the Vendôme PLC shares and of the Vendôme SA shares comprised in each unit;
- approval of the UK Scheme by a majority in number representing three-quarters in value of those holders of Vendôme PLC shares who vote at a meeting of Vendôme PLC convened by the Court;
- the sanction of the Court to the UK Scheme;
- the resolution required to approve, implement and effect the appropriate amendments to the Articles of Association of Vendôme SA to effect the de-twinning of the Vendôme SA shares and of the Vendôme PLC shares comprised in each unit, the sale of Vendôme SA's undertaking and the liquidation of Vendôme SA (the "Luxembourg Resolution") being passed at an Extraordinary General Meeting of Vendôme SA and becoming effective (other than in relation to the UK Scheme Conditions);
- no government or governmental, supra-national or trade agency or regulatory body or court having instituted or threatened any action, suit or investigation or enacted or made any statute or regulation or order that might:
- restrain, prohibit or otherwise challenge the UK Scheme or implementation of the Luxembourg Resolution;
- result in a material delay in the ability of New VLG, or render it impossible or unduly onerous for New VLG, to implement the UK Scheme or, as the case may be, the Luxembourg Resolution;
- require the divestiture by Vendôme PLC or Vendôme SA or any material subsidiary of either of them of all or any material portion of its business, assets or property or impose any material limitation on the ability of any such company to conduct its business and own its assets or properties; or
- impose any material limitations on the ability of New VLG to acquire or hold or exercise effectively all rights of ownership of the shares of Vendôme PLC or, as the case may be, of the undertaking of Vendôme SA; and
- save as disclosed to Richemont on or prior to 19th December, 1997, since 30th September, 1997, being the date to which the latest unaudited interim results of Vendôme, as released on 26th November, 1997, were made up, there having been no material adverse change or deterioration in the business, financial or trading position or assets, profits or prospects of Vendôme.
New VLG will reserve the right to waive conditions (v) and (vi) in whole or in part.
The Luxembourg Resolution will only become effective if:
- the UK Scheme becomes effective; and
- it is approved by a seventy-five per cent. majority by value of the minority shareholders of Vendôme SA who vote on the resolution.
The proposal will not proceed unless the UK Scheme becomes effective by 30 April, 1998 or such later date as New VLG and Vendôme may agree.
Vendôme Luxury Group
The Board of Compagnie Financière Richemont AG ("Richemont") announces that it has approached the Board of Vendôme Luxury Group ("Vendôme") to seek its support for possible proposals which may result in the effective acquisition by a wholly-owned subsidiary of Richemont SA, Luxembourg of the outstanding minority units in Vendôme for 495p per unit in cash. In addition, Vendôme unitholders would continue to be entitled to receive the interim dividend of 3.7p (net) per unit declared by the Vendôme Board on 26th November, 1997.
The proposals, which would be subject, inter alia, to the recommendation of the Vendôme Board and the approval of Vendôme's minority unitholders, are likely to involve a Vendôme Luxury Group PLC Scheme of Arrangement in the UK and a scheme relating to Vendôme Luxury Group SA in Luxembourg. Richemont may decide not to proceed with the proposals in the event of any further collapse in the world markets which would be likely to have a material adverse impact on the business of Vendôme.
It is expected that the Vendôme Board will appoint a committee of independent directors to consider Richemont's proposals and advise minority unitholders.
The price of 495p per unit represents a premium of 25.8 per cent over the closing middle market price of Vendôme units on 27th November, 1997 of 393.5p and a multiple of 18.7 times Vendôme earnings per unit for the year ended 31 March, 1997. This price values the whole of Vendôme at £ 3 454 million and the 30 per cent minority holdings at £ 1 036 million. A financing commitment for the full amount of the cash consideration has been provided by Deutsche Bank.
A further announcement will be made in due course.
This announcement has been approved for the purposes of Section 57 of the Financial Services Act 1986 by Morgan Grenfell & Co. Limited ("Deutsche Morgan Grenfell") which is regulated by The Securities and Futures Authority Limited.
Deutsche Morgan Grenfell is acting for Richemont in relation to this matter and is not advising any other person. Accordingly, Deutsche Morgan Grenfell will not be responsible to anyone other than Richemont for providing the protections afforded to customers of Deutsche Morgan Grenfell.
C O M P A G N I E F I N A N C I È R E R I C H E M O N T AG
RIGISTRASSE 2 CH-6300 ZUG SWITZERLAND
TELEPHONE 041 710 33 22 TELEFAX 041 711 71 02 TELEX 862 336 CFR CH
Notes to editors:
Information on Vendôme:
Vendôme is a luxury goods group in which Richemont has a 70 per cent interest. Companies in the Vendôme group design, manufacture, market and distribute a range of luxury products including jewellery, watches, writing instruments, leather goods, menswear and accessories, fragrances, lighters and ladies' fashions and accessories. The principal brand names owned by Vendôme are Cartier, Alfred Dunhill, Montblanc, Piaget, Baume & Mercier, Vacheron Constantin, Lancel and Chloé.
On 26th November, 1997 Vendôme published its interim results for the six months ended 30th September, 1997. For this period, Vendôme had net turnover of £ 693.1 million (1996: £ 703.6 million), operating profit of £ 114.1 million (1996: £ 109.8 million) and profit attributable to unitholders of £ 84.3 million (1996: £ 83.5 million). Earnings per unit were 12.1p (1996: 12.0p). An interim dividend of 3.70p (net) per unit (1996: 3.62p) was declared and will be paid on 30th January, 1998.
Each Vendôme unit comprises one share in Vendôme Luxury Group PLC twinned with one share in Vendôme Luxury Group SA, Luxembourg. The units are listed on the London Stock Exchange and the Luxembourg Stock Exchange.
Information on Richemont
Richemont is an industrial holding company based in Switzerland and is quoted on the Swiss Stock Exchange. Richemont depository receipts are traded on the Johannesburg Stock Exchange and over the counter in New York and London. Richemont has a market capitalisation of SF 8 310 million (£ 3 490 million). *
In addition to its 70 per cent interest in Vendôme, Richemont's principal business interests are:
- Rothmans International, in which it has a two-thirds interest. Companies in the Rothmans International group manufacture, distribute and sell a wide range of well-known brands of cigarettes, cigars and smoking tobaccos throughout the world. Principal trade marks owned or controlled by Rothmans International include Rothmans, Peter Stuyvesant, Dunhill, Craven "A" and Winfield. The remaining one-third of Rothmans International is owned by Rembrandt Group Limited.
- Canal+, a company in which Richemont has a 15 per cent interest. Canal+ is Europe's leading pay television group, broadcasting via a combination of terrestrial, cable and satellite methods. Canal+ has a market capitilsation of FF 31 580 million (£ 3 200 million). *
For the year ended 31st March, 1997, Richemont reported net sales of £ 4 755.8 million (1996: £ 4 306.9 million), attributable profit of £ 302.9 million (1996: £ 316.1 million) and earnings per unit of £ 52.75 (1996: £ 55.05) (before amortisation of goodwill and exceptional items).
Richemont's interim results for the six months ended 30th September, 1997 will be announced on Monday, 1st December 1997.
* Based on the closing price of Richemont and Canal+ of SF 1 592 and FF 1 007 respectively on 27th November, 1997 and using exchange rates £/SF = 2.38 and £/FF = 9.88.
In September 1996, Richemont and MIH announced the disposal of their pay television interests
In September 1996, Richemont and MIH announced the disposal of their pay television interests held through Nethold, including a 45% shareholding in Telepiù, to Canal+. In the context of the usual post-closing audit procedure that followed this acquisition, Canal+ has identified a difference of approximately 15% in the number of active Telepiù subscribers, being principally analogue subscribers, as at 31 August 1996 compared to the number warranted by Richemont and MIH. The agreement between Canal+, Richemont and MIH specifically provides for Canal+ to be compensated for any shortfall identified in the course of such a post closing audit.
During a meeting of the board of Canal+ held today, Mr Johann Rupert, Chief Executive of Richemont and a director of Canal+, strongly restated his confidence in the management of Canal+ and Richemont’s intention of resolving this matter rapidly and amicably. The parties have therefore agreed to establish the amount of the compensation due to Canal+ within the next 30 days. Mr Rupert said: "The agreements between Canal+, Richemont and MIH specifically provide for such post closing adjustments and we are most confident that we will resolve the matter quickly and amicably. We are very satisfied with our investment in Canal+ and with the progress achieved by its management."
Mr Pierre Lescure, Chairman and Chief Executive Officer of Canal+, said: "The agreements entered into with Richemont and MIH in connection with the Nethold contribution will allow us to resolve this matter in the best interests of Canal+. The outlook for the development of our business in Italy remains most promising, as exemplified by the number of digital subscribers which has risen from 5,000 as at 31 August 1996 to over 160,000 as at the end of October 1997."
Richemont is a 15% shareholder in Canal+. It is anticipated that any compensation payable to Canal+ will be adequately covered by available provisions and, consequently, that the settlement of any such claims will have no impact on earnings in the current year.
Richemont and Havas have come to an agreement today in respect of their future relationship as shareholders of Canal+
Richemont and Havas have come to an agreement today in respect of their future relationship as shareholders of Canal+:
- Upon completion of the contributions by Compagnie Générale des Eaux and Audiopar of their shareholdings in Canal+ to Havas and of the Merger between Canal+ and Nethold - each transaction being subject to the approval of extraordinary shareholders meetings of Havas and Canal+ respectively on 28th March 1997 - Havas and Richemont shall hold respectively 34% and 15% of Canal+
- The two groups, regarding their common view of the prospects for Canal+ and their common objective of the maximisation of its market value through, notably, the protection of its managerial independence, have joined in a concert party ("Action de concert")
- Havas and Richemont shall be represented on the Board of Directors of Canal+ by 7 and 3 directors respectively
- In respect of corporate governance, four committees of the Board of Canal+ shall be instituted: an investment committee, a finance committee, a remuneration committee and a transaction committee
- Richemont shall enjoy a right of joint and proportional sale of its shares in the event of a disposal by Havas of more than 10% of the equity capital of Canal+
- Havas and Richemont shall keep the shareholdings to their current level so long as the law prohibits the holding of more than 49% of the equity capital of Canal+
Richemont and Havas have also signed a preemption agreement.
Separately, the shareholders agreement dated 10th February 1994 among Havas, Compagnie Générale des Eaux and Société Générale is being declared null and void.
Definitive agreements concluded for merger of CANAL+ SA and Nethold BVConclusion des accord de defusion definatifs entre CANAL+ SA et Nethold BVEndgueltige vereinbarungen zur fusion von CANAL+ SA end Nethold BV
Canal+, Richemont and MIH announce that, as envisaged in the heads of agreements entered into on 5 September 1996, definitive agreements have now been entered into between the parties for the merger of Canal+ with Nethold’s operations in Scandinavia, the Benelux, Italy and Central Europe. The operations of Nethold in Africa, the Middle East, Greece and Cyprus will be transferred to MIH. Following the merger, Richemont and MIH will have a combined interest of 20% in Canal+. The merger is dependent upon, inter alia, certain regulatory and other approvals. It is anticipated that the transaction will be closed during March or April of next year.
Compagnie Financière Richemont AG Rigistrasse 2, 6300 Zug, Switzerland
Nethold to merge with CANAL+ to create the leading European pay-TV and Digital Television group
CANAL+, Richemont and MIH have today agreed in principle to merge NetHold and CANAL+. This merger is a major strategic move, resulting in the creation of one of the largest television groups in the world, particularly in the field of pay-TV, with over 8.5 million subscribers. The group will have a significant position in France, Italy, Spain, Scandinavia, Benelux and Germany as well as an established presence in several growing markets in Central Europe.
The two groups have to date played a pioneering role in building new pay channels, enlarging the offer of television programming and increasing choice for the viewer. By combining their respective strengths and expertise, they will create a new entity able to meet the challenge of digital television, to convey the benefits of multichannel television to the viewers throughout Europe and to compete successfully on a world wide basis.
The two companies believe that the increased competition in the television industry offers unique opportunities for the new group to exploit fully its excellence in programming and production as well as to develop new brands, digital technology and subscriber management systems. The group’s aim is to offer a wide range of tailor-made channels adapted to local tastes across Europe.
The transaction has the full support of the company’s main shareholders - Havas, Compagnie Générale des Eaux, Société Générale, and Caisse des Dépôts for CANAL+ and Richemont and MIH for NetHold - and remains subject to regulatory and shareholders’ approval.
At a joint conference in Paris, Johann Rupert, CEO of Richemont and Chairman of NetHold said:
"Over the past 4 years NetHold expanded rapidly across Europe. Our initial investment in FilmNet and Telepiù was augmented by significant organic growth. I welcome this merger as an opportunity to increase our involvement in the industry. I look forward to participate with my fellow shareholders in building one of the top media groups in the world." is, Johann Rupert, CEO of Richemont and Chairman of NetHold said:
Pierre Lescure, Chairman and CEO of CANAL+ said:
The growth potential of our new group is phenomenal. The combination of relatively immature pay-TV markets where NetHold is present and the introduction of digital tv offers superb opportunities both to increase our subscriber base and to distribute our programming software across a wider territory. I cannot think of a better strategic fit for CANAL+" and look forward to the challenge of leading our new Group into the era of digital television."
Transaction Description
Prior to the completion of the merger, NetHold will transfer its operations in Africa, the Middle East, and the Eastern Mediterranean (Greece and Cyprus) to MIH, the South African group which currently owns 50% of NetHold. These operations will continue to cooperate with the new merged entity in the fields of technology and rights acquisition.
CANAL+ will acquire 100% of NetHold’s capital from Richemont and MIH in exchange for 6.1 million new CANAL+ shares and a cash payment of US$ 45 million. As a result of the share issue Richemont and MIH will own 15% and 5% of CANAL+ respectively.
Havas, Compagnie Générale des Eaux and Richemont/MIH will each have three seats on CANAL+’s Board of Directors.
As NetHold’s operations are currently in a significant growth phase, particularly in view of the roll-out of digital broadcasting, NetHold is expected to incur operating losses until 1998 and reach break-even in operating terms during 1999. Significant profits and cash generation are expected from the year 2000 onwards. CANAL+’s strong cash flow will support the attractive investment opportunities of the combined entity, while allowing its dividend per share to remain unaffected.
Compagnie Financière Richemont AG has interests primarily in the luxury goods and tobacco businesses. Brand names include Cartier, Montblanc, Rothmans, Dunhill and Peter Stuyvesant.
MIH is a listed holding company and was one of the pioneers of pay television services outside the USA, enjoying rapid growth.
A presentation to equity research analysts concerning the transaction will take place on Monday 9th September 1996 at 8.00 a.m. at the offices of CANAL+, 85/89, Quai Andre Citroën, Paris 75711.
Acquisition by Rothmans International of the Burrus Group Acquisition par Rothmans International du Groupe Burrus Uebernahme der Burrus Gruppe durch Rothmans International
Agreement has been reached for the acquisition by Rothmans International of 100% of the Burrus tobacco interests from the family owners. The contract was signed and completed on 27th June, 1996.
The Burrus Group was founded by family members in 1814. The company is based in Boncourt in the Canton of Jura, Switzerland, where it has manufacturing facilities. Its commercial activities are centralised in Lausanne. It has a 22% market share of the Swiss domestic market where it manufactures and sells a number of well-known brands including their own Parisienne and Select, as well as Gauloises and West which are manufactured and distributed under licence. It also supplies and has interests in a number of export markets. In its last financial year to 31st December 1995, the Burrus Group recorded invoiced sales (inclusive of production tax) amounting to 525 million Swiss francs.
Rothmans International is the Dutch holding company for the tobacco interests of Compagnie Financière Richemont AG, a publicly quoted Swiss company. Richemont’s business interests include substantial Swiss based manufacture and distribution of watches and other luxury products. Richemont owns 66.7% of Rothmans International and Rembrandt Group Limited of South Africa holds the remaining 33.3% interest. Rothmans International’s wholly owned Swiss subsidiary, Sullana AG, was originally established in 1916 and manufactures and supplies a number of well-known international brands to the domestic market, including Dunhill, Peter Stuyvesant, Rothmans, Cartier and Vogue. It also manufactures for export markets.
It is intended to integrate the two businesses in due course, but initially they will retain their separate business activities and trading styles.
Commenting on the transaction, Mr C. Burrus, Chairman of the Burrus Group, said: "After 182 years of deep dedication to their family owned tobacco company, the Burrus family consider that it is the right time to step aside in order to facilitate the further development of the Burrus Group.
The Rothmans International group of companies, with its worldwide influence, and its proven skill to manage multi-cultural organisations is now in charge. We are proud of the past and we are now even more confident in the future of the company."
Mr W.P. Ryan, Chief Executive of Rothmans International, said: "We are delighted to have acquired this successful business with growing brands which will strengthen the group’s competitive position in this important market and provide a platform for future growth."
Richemont and Remgro announce that they have commenced preliminary discussions
Richemont and Remgro announce that they have commenced preliminary discussions with a view to determining the feasibility of merging their respective tobacco interests. Richemont’s tobacco interests are held through its wholly-owned Dutch subsidiary, Rothmans International BV. Remgro’s tobacco interests are largely held through its wholly-owned subsidiary, Rembrandt S.A. Limited.
It is envisaged that, if implemented, the merger would combine the respective tobacco interests in an international group with an integrated portfolio of trade marks and businesses. Richemont and Remgro would each hold shares in the combined business and therefore the proposals would not affect the capital structure of Richemont or Remgro.
Richemont is a listed company based in Switzerland. Remgro is a listed South African company which is effectively controlled by the following listed companies:
- Technical and Industrial Investments Limited ("TIB");
- Technical Investment Corporation Limited ("Tegkor"); and
- Rembrandt Controlling Investments Limited, ("RBB")
Holders of units and depository receipts in Richemont and shareholders in Remgro, TIB, Tegkor and RBB should therefore exercise caution in their dealings in securities in these companies until a further announcement is made
Zug, Switzerland
Stellenbosch, South Africa.
Richemont AG is pleased to announce the implementation of a Level 1 American Depositary Receipt
The Board of Directors of Compagnie Financière Richemont AG is pleased to announce the implementation of a Level 1 American Depositary Receipt (ADR) programme sponsored by The Bank of New York. The programme was declared effective by the Securities and Exchange Commission on Monday 11 September 1995.
The Richemont ADRs will trade on the over the counter market in New York under the symbol RCHMY. It is anticipated that they will also be quoted on SEAQ International in London.
The facility will provide for ADRs to be issued by The Bank of New York in exchange for delivery of either Richemont ‘A’ Units, in the ratio of 100 ADRs to one ‘A’ Unit, or South African Depositary Receipts, in the ratio one ADR to one South African Depositary Receipt. Richemont ‘A’ Units are quoted on the Stock Exchanges of Zurich, Geneva and Basel. Richemont South African Depositary Receipts are traded on the Johannesburg Stock Exchange.
Based in Zug, Switzerland, Compagnie Financière Richemont AG exercises financial and operational control over subsidiaries active in the fields of tobacco products and luxury goods. In addition Richemont hold investments in the electronic media and direct marketing industries.
Richemont's tobacco interests are held through its wholly owned subsidiary Rothmans International BV, whose group operating companies produce a wide range of cigarettes, cigar and smoking tobaccos. Richemont’s luxury goods interests are held through Vendôme Luxury Group SA/PLC in which it holds a 70% interest. The principal operating subsidiaries of Vendôme include Cartier, Alfred Dunhill, Mont Blanc, Piaget and Baume & Mercier. Richemont’s interests in pay television are held through its 50% investment in Nethold BV which has interests in Scandinavia, the Benelux, Italy, Central and Mediterranean Europe and South Africa.
Richemont and Rothmans International announce that negotiations are at an advanced stage
Richemont and Rothmans International announce that negotiations are at an advanced stage for a transaction which may lead to an offer being made for all the outstanding units of Rothmans International at 625p per unit. Rothmans International is 61 per cent owned by Richemont. Implementation of the envisaged transaction would result in Rothmans International becoming indirectly wholly owned by Richemont.
A committee of the Board comprising independent directors of Rothmans International, chaired by Mr John Craven, is considering the proposal on behalf of Rothmans International.
It is not intended, following any such transaction, that Rothmans International should offer to acquire the minority interests in its quoted subsidiaries, these being: Rothmans Holdings Limited in Australia, Rothmans Industries Limited in Singapore, Rothmans of Pall Mall (Malaysia) Berhad and Rothmans Inc. in Canada.
Similarly, it is not intended, following any such transaction, that Richemont should offer to acquire the minority public interests in Vendôme Luxury Group.
The independent directors of Rothmans International (being all the Rothmans International directors, excluding Lord Swaythling, Johann Rupert and Jan du Plessis, who are all directors of Richemont) are being advised by N M Rothschild & Sons Limited and Richemont is being advised by Hambros Bank Limited.
A further announcement will be made as soon as possible.
Richemont signs agreement to merge its media interests with M-Net
The Board of Richemont, the Swiss industrial holding company, announces that it has ratified the agreement reached with MultiChoice/M-Net of South Africa consolidating the subscription television operations of both groups into a new jointly-controlled company, Network Holdings (“Nethold”). While announcement of this transaction was made in December 1994, formal agreements were signed this week in Amsterdam by the respective principals. The new structure takes effect from 31 March 1995.
In addition to FilmNet, MultiChoice Europe, ProNet and Irdeto, which were already under joint control, Richemont contributes its 25% of the Italian pay-TV company, Telepiù, while MultiChoice/M-Net all of its subscriber management business as well as a 20% interest in M-Net and Orbicom, a South African broadcast signal distribution company. The new company operates in over 43 countries in Europe and Africa and serves over 2.4 million premium subscribers.
Telepiù broadcasts two premium encrypted pay-TV channels featuring movies and sports, and one unencrypted channel featuring principally documentary and cultural programmes. It currently has over 650,000 subscribers in Italy.
FilmNet broadcasts five pay-TV channels in Holland, Belgium, Denmark, Sweden, Norway and Finland and has over 800,000 subscribers. FilmNet recently launched pay-TV channels in Central Europe and Greece. MultiChoice Kaleidoscope is the subscriber management business which serves FilmNet and other encrypted channels, and Irdeto is a company specialising in encryption technology and digital development.
M-Net, a premium movie and sports channel, is broadcast to 32 countries on the African continent. MultiChoice serves over 930,000 subscribers in South Africa, Ghana, Nigeria and Egypt, amongst other African countries.
The transaction results in the formation of a clearly defined group with aligned shareholder interests and a unified management structure. It will be able to compete in a market which is increasingly characterised by globalisation and the convergence of various industries. The new group will be able to bring leading technology to all its markets and extract cost savings and synergies in its business. The restructured group will also have sufficient financial and managerial resources to exploit new opportunities.
Richemont is a Swiss holding company which exercises financial and operational control over companies operating primarily in the fields of tobacco and luxury goods. In addition, Richemont holds investments in associated companies operating in the electronic media and direct marketing industries. Richemont is quoted on the Zürich, Geneva and Basle Stock Exchanges.
The corporate structural changes are set out in the annexure hereto.

