Compagnie Financiere Richemont Sa · SIX:CFR
Compagnie Financiere Richemont Sa — Richemont — Investor Presentation (June 2024)
30 slides from Compagnie Financiere Richemont Sa's investor presentation, June 2024
Slide 1: Richemont at-a-glance
RICHEMONT at-a-glance
Slide 2: At Richemont, we craft the future
Jewellery Specialist AT RICHEMONT, Maisons Watchmakers WE CRAFT THE FUTURE Richemont, founded in 1988, is one of the world’s leading luxury goods groups. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity. Fashion & Accessories / Other RICHEMONT AT
Slide 3: Long-term sustainable growth and customer-centricity
WITH A FOCUS ON LONG-TERM SUSTAINABLE GROWTH We aim to grow sustainably and responsibly by nurturing our Maisons and businesses for long-lasting high performance, and drawing on their distinctive heritage. AND CUSTOMER- CENTRICITY 75 % of Group sales are now direct sales to end clients Our customers
Slide 4: Offering a seamless, personal customer experience
OFFERING A SEAMLESS, PERSONAL CUSTOMER EXPERIENCE Our omnichannel strategy provides the right message at the right time and location, transforming customer AND A GLOBAL PRESENCE journeys into effortless and memorable experiences. 40 000+ 31 % Boutiques • We operate more than 2 400 monobrand boutique
Slide 5: We generate strong financial performance
WE GENERATE STRONG FINANCIAL PERFORMANCE MIDDLE EAST & AFRICA 8% EUROPE JAPAN 22% OPERATING CASH FLOW FROM 8% SALES PROFIT OPERATING ACTIVITIES € 20.6 bn € 4.8 bn € 4.7 bn SALES BY GEOGRAPHIC AMERICAS LOCATION 22% ASIA CLOTHING, PACIFIC JEWELLERY WATCH LEATHER GOODS & 40% SALES SALES ACCESSORIES SAL
Slide 6: Supported by a solid financial position
SUPPORTED BY A SOLID FINANCIAL POSITION We preserve a strong capital base by prioritising cash over margins to: CHF 74 bn* € 7.4 bn** • meet unexpected crises • sustain future developments through long-term investment Market capitalisation Net cash • seize opportunities to provide returns to Top 6 S
Slide 7: We empower all our Maisons & businesses
WE EMPOWER ALL OUR MAISONS & BUSINESSES A dedicated management team leads We work as business partners. As a family-spirited each Maison and business to preserve its Group, our central and regional functions pool celebrated quality and distinctive aesthetic their expertise to guide, support and chal
Slide 8: We treasure our colleagues
WE TREASURE OUR COLLEAGUES People are our most distinguished asset, the heart of our business and the ultimate foundation of our exceptional creations. We support ongoing personal and professional development with practical, top-ranking and easily accessible educational experiences. We also favour i
Slide 9: We celebrate diversity, equity & inclusion
WE CELEBRATE DIVERSITY, EQUITY & We believe in strength through diversity INCLUSION Johann Rupert, Chairman Advancing workplace diversity, equity and inclusion are more than ever critical today. NATIONALITIES OF OUR COLLEAGUES At Richemont, we succeed by respecting 130 58 % and empowering individual
Slide 10: Creating our sustainable future
CREATING OUR TARGETS AND 2022 PERFORMANCE* SUSTAINABLE FUTURE BASE YEAR 2019 STATUS IN 2021 STATUS IN 2022 2025 TARGET Richemont’s carbon reduction targets for 2025 Increase annual sourcing of renewable 64% 93%** 97% and 2030 were validated by the Science Based electricity to 100%. Targets initiativ
Slide 11: ESG performance highlights
ESG PERFORMANCE HIGHLIGHTS SUSTAINABILITY APPROACH Established Launched ESG Management System Sustainability Online informed by Academy ESG Risk & Opportunity for training & development Assessment 11.6 in Top 4% Updated February 2024 A leader since April 2021 ACTING ON OUR ENVIRONMENTAL IMPACT 97% 2
Slide 12: Responsible sourcing, manufacturing & office facilities
RESPONSIBLE SOURCING, MANUFACTURING & OFFICE FACILITIES Responsible sourcing Sustainable manufacturing and office facilities • Richemont requests suppliers to provide • By 2025, Richemont aims to source assurance that they source in a way that 100% renewable energy respects the environment, and huma
Slide 13: Strategic partnerships
STRATEGIC PARTNERSHIPS Richemont participates Our Maisons are Cartier, delegated Our Maisons have Cartier co-founded Vacheron Constantin in the United Nations certified members by Richemont, and been collaborating the Aura Blockchain works with Arianee to Global Compact, of the RJC Kering launched t
Slide 14: Foundations in support of communities
FOUNDATIONS IN SUPPORT OF COMMUNITIES WATCHES AND WONDERS GENEVA FOUNDATION (WWGF) RICHEMONT AT A GLANCE 14
Slide 15: Supporting schools & academia to inspire innovation
SUPPORTING SCHOOLS & ACADEMIA TO INSPIRE INNOVATION RICHEMONT AT A GLANCE 15
Slide 16: Corporate governance: Senior Executive Committee
CORPORATE GOVERNANCE SENIOR EXECUTIVE COMMITTEE Johann Rupert Nicolas Bos Jérôme Lambert Burkhart Grund Chairman Chief Executive Officer Group Chief Operating Officer Chief Finance Officer Patricia Gandji Karlheinz Baumann Boet Brinkgreve Bérangère Ruchat Swen Grundmann Chief People Officer Group Di
Slide 17: Corporate governance: Board of Directors
CORPORATE GOVERNANCE BOARD OF DIRECTORS Johann Rupert Josua Malherbe Jérôme Lambert Burkhart Grund Nikesh Arora Clay Brendish Chairman Non-executive Group Chief Chief Finance Non-executive Non-executive Lead Deputy Chairman Operating Officer Officer Director Independent Director Fiona Druckenmiller
Slide 18: Appendix
APPENDIX RICHEMONT AT A GLANCE 18
Slide 19: Our people
OUR PEOPLE Middle East India 0-30 19% South Africa Japan 4% 6% Americas Boutiques 11% 31% 30-50 64% Europe Offices 55% 46% BY FUNCTION BY REGION 50+ Asia Pacific 24% Manufacturing 23% 17% RICHEMONT AT A GLANCE 19
Slide 20: Retail network – worldwide
31 March 31 March Net change 2024 2023 Total RETAIL NETWORK – WORLDWIDE Jewellery Maisons 484 465 +19 Cartier 273 272 +1 Van Cleef & Arpels 163 150 +13 Buccellati 48 43 +5 Specialist Watchmakers 909 871 +38 Total boutiques IWC 212 206 +6 +81 to 2 422 Panerai Jaeger-LeCoultre 185 171 169 166 +16 +5 P
Slide 21: The formation of a focused luxury group
THE FORMATION OF A FOCUSED LUXURY GROUP Acquisition of Acquisition of Serapian Buyout of Rothmans’ Merger of Rothmans Acquisition of Acquisition of minority (40%) shareholders Van Cleef & Arpels with BAT. Richemont Peter Millar Delvaux completed owns 23.3% of BAT Foundation of Compagnie Merger of pa
Slide 22: Combining heritage with digital native companies
COMBINING HERITAGE WITH DIGITAL NATIVE COMPANIES FOUNDATION YEAR 1755 1814 1829 1830 1833 1845 1847 1860 1868 1874 1893 1906 1919 1928 1952 1983 1995 2000 2001 2002 2006 2021 RICHEMONT AT A GLANCE 22
Slide 23: Ownership structure
OWNERSHIP STRUCTURE 50% Compagnie Financière Richemont SA, 50% votes Geneva votes Listed 537.6m A Registered Shares Private 537.6m B Registered Shares 90.9% of Capital / Economic Participation 9.1% of Capital / Economic Participation • Primary listing: A shares issued by Compagnie Financière Richemo
Slide 24: Sales evolution 2000-2024
SALES EVOLUTION 2000-2024 20.0 20,6 19.2 14.0 14.2 13.1 11.1 11.0 10.4 10.6 10.2 10.0 8.9 >7X 6.9 5.3 5.4 5.2 4.8 4.3 3.7 3.9 3.7 3.4 3.7 In 24 years 2.9 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 in €bn RICHEMONT AT A
Slide 25: Financial highlights
FINANCIAL HIGHLIGHTS Group sales (€m) FY24 20 616 +3% 19 953 +19% Operating profit (€m) FY22 16 748* NR* 5 031 4 794 0 5 000 10 000 15 000 20 000 25 000 3 753* 2% 3% 4% 5% Sales by product line 52% Jewellery Watches Leather goods Clothing Writing instruments Other 2022 2023 2024 34% RICHEMONT AT A G
Slide 26: Financial highlights
FINANCIAL HIGHLIGHTS 7 450 6 549 Solid cash flows, financing critical 5 251 investments, led 4 638 4 491 4 696 to a strong net cash position 3 393 3 218 (€ m) Net cash Cash flow from operatiing activities 981 1 010 871 Capital investment * 513 2021 2022 2023 2024 * Net acquisition of fixed assets, p
Slide 27: Dividends: paid and per A share/10 B shares
DIVIDENDS: PAID AND PER A SHARE/10 B SHARES 4,00 CHF 3.50 Warrant and Special €2 072m CHF 3.25 3,50 2000 Ordinary €1 851m Dividend per 1 A/10 B shares (in CHF) Total Outflow CHF 2.75* 3,00 Dividend cash outflow in €m 1500 2,50 CHF 2.00 CHF 2.00 CHF 1.90 €1 041m CHF 1.80 €1 017m CHF 1.70 €926m 2,00 C
Slide 28: Share price since flotation
100 120 140 160 20 40 60 80 0 (in CHF) 1989 1990 1991 1992 RICHEMONT AT A GLANCE 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 SHARE PRICE SINCE FLOTATION 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 28 To May 2024
Slide 29: Share price over 5 years
SHARE PRICE OVER 5 YEARS (in CHF) To May 2024 160 140 120 100 80 60 40 2019 2020 2021 2022 2023 2024 RICHEMONT AT A GLANCE 29
Slide 30: Richemont Maisons and brands
Buccellati • Cartier • Van Cleef & Arpels • A. Lange & Söhne • Baume & Mercier • IWC • Jaeger-LeCoultre • Panerai • Piaget • Roger Dubuis • Vacheron Constantin • Alaïa • AZ Factory • Chloé • Delvaux • dunhill • Gianvito Rossi • Montblanc • Peter Millar • Purdey • Serapian • TimeVallée • Watchfinder