Compagnie Financiere Richemont Sa · SIX:CFR

Compagnie Financiere Richemont Sa — FY2025 Earnings Presentation

44 slides from Compagnie Financiere Richemont Sa's earnings presentation, May 16, 2025

1. Slide 1: FY25 Annual Results 31 March 2025

   FY25 ANNUAL RESULTS 31 MARCH 2025

2. Slide 2: Forward-looking statements

   Certain of the matters discussed in this document about our and our subsidiaries’ future performance, including, without limitation, store openings and closings, product introductions, sales, sales growth, sales trends, store traffic, Richemont's strategy and initiatives and the pace of execution th

3. Slide 3: Agenda

   › Highlights › Sales › Business areas › Financials › Conclusion › Q&A › Appendix

4. Slide 4: Highlights

   Highlights

5. Slide 5: FY25 Key Figures: Robust Performance in Uncertain Environment

   FY25 KEY FIGURES|ROBUST PERFORMANCE IN UNCERTAIN ENVIRONMENT Sales Operating Profit €21.4bn €4.5bn +4% -7% at actual FX at actual & constant FX -4% at constant FX Profit Cash-flow from Continuing Operations from Operating Activities €3.8bn €4.4bn -1% vs prior year Net Cash Position €8.3bn

6. Slide 6: FY25 Highlights

   FY25 HIGHLIGHTS ▪ Sales up 4% at constant rates on the back of H2 growth, with Q3 at +10% and Q4 at +7% Solid ▪ High single-digit increase at the Jewellery Maisons sales growth ▪ Double-digit growth across all regions, except Asia Pacific ▪ Operating Profit of €4.5bn including €72m of non-recurring

7. Slide 7: Continued Long-Term Focus: Investing for Future Growth

   CONTINUED LONG-TERM FOCUS|INVESTING FOR FUTURE GROWTH ▪ Notable new store openings, further strengthening our local anchoring in key cities and Store network proximity with local clienteles enhancement ▪ Major renovations and extensions to enhance client experience ▪ Close to €500m capex and €200m i

8. Slide 8: Sales

   Sales

9. Slide 9: Double-Digit Growth Across Most Regions in FY25

   DOUBLE-DIGIT GROWTH ACROSS MOST REGIONS IN FY25 (CONSTANT RATES) Americas Asia Pacific +15% vs FY24 25% 33% -13% vs FY24 ▪ Growth across all business areas ▪ 23% decline in China, HK and Macau and all channels combined, on weak demand ▪ Supportive local demand ▪ Double-digit growth in South Korea ▪

10. Slide 10: Strong Contribution From All Regions, Except APAC

    STRONG CONTRIBUTION FROM ALL REGIONS, EXCEPT APAC (€M) +€0.8bn +4% at actual rates +256 21 399 +435 +456 +706 20 616 -1 070 FY24 Europe Asia Pacific Americas Japan Middle East FY25 & Africa

11. Slide 11: Increase in DTC Sales Led by Jewellery Maisons

    INCREASE IN DTC SALES LED BY JEWELLERY MAISONS (CONSTANT RATES) Retail Direct-to-Client (DTC) +6% vs FY24 76% of sales (+170bps vs FY24) ▪ Solid increase at Jewellery Maisons • c. 85% at Jewellery Maisons ▪ Double-digit growth across all 70% • c. 60% at Specialist Watchmakers 76% regions except Asia

12. Slide 12: Business areas

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13. Slide 13: Jewellery Maisons: Strong Performance

    FY25 JEWELLERY MAISONS|STRONG PERFORMANCE › Sales of €15.3bn, up by 8% at actual and constant exchange rates ▪ Double-digit growth in all regions, except Asia Pacific ▪ Solid direct-to-client sales 21% +13% ▪ H2 accelerating to double digits; Q4 +11% at constant rates Europe 12% › Operating result a

14. Slide 14: Jewellery Maisons: Continued Strength of Iconic Lines

    FY25 JEWELLERY MAISONS|CONTINUED STRENGTH OF ICONIC LINES › Iconic jewellery and watch collections fuelled by creativity ▪ Notable performances of Panthère and Trinity (Cartier), Alhambra and Perlée (Van Cleef & Arpels), Macri (Buccellati) ▪ Launch of major novelties › Cartier | Love Medium & Hinge,

15. Slide 15: Specialist Watchmakers: Impact of APAC Exposure, Resilience Elsewhere

    FY25 SPECIALIST WATCHMAKERS|IMPACT OF APAC EXPOSURE, RESILIENCE ELSEWHERE › Sales of €3.3bn, down by 13% at actual and constant exchange rates ▪ -27% in Asia Pacific, SWM’s largest region, led by China 23% ▪ Growth in the Americas and Japan -1% ▪ Europe and Middle East & Africa largely stable Europe

16. Slide 16: SWM: Navigating Fluctuations in Demand With Discipline

    FY25 SWM|NAVIGATING FLUCTUATIONS IN DEMAND WITH DISCIPLINE › Varied performance across Maisons ▪ Depending on regional exposure and product mix ▪ Better resilience at A. Lange & Söhne and Vacheron Constantin › Maintained discipline of sell-in/sell-out ratio › Novelties inspired by heritage, fuelled

17. Slide 17: 'Other': Solid Sales Growth, Impact of One-Time Items

    FY25 ‘OTHER’|SOLID SALES GROWTH, IMPACT OF ONE-TIME ITEMS › Sales of €2.8bn, up by 7% at actual and constant exchange rates ▪ Sales growth across all regions except Asia Pacific ▪ Notable double-digit increases in the Americas, Middle East 34% & Africa and Europe +12% Europe ▪ Increase in all channe

18. Slide 18: 'Other': Raising Desirability Within F&A

    FY25 ‘OTHER’|RAISING DESIRABILITY WITHIN F&A › Another year of strong growth at Alaïa, particularly in leather goods › Solid momentum at Peter Millar › Double-digit growth in ready-to-wear across Maisons with an encouraging performance at Chloé › Continued creativity of collections across product ca

19. Slide 19: Financials

    Financials

20. Slide 20: Gross Profit

    FY25 GROSS PROFIT › Gross profit up 2% to €14.3bn › Gross margin of 66.9%, down 120bps, or 80bps at constant exchange rates ▪ Adverse foreign exchange movements, mostly driven by JPY, CNY and CHF ▪ Higher production costs, mainly linked to raw materials cost increase, partly mitigated by positive im

21. Slide 21: Operating Expenses

    FY25 OPERATING EXPENSES › Operating expenses up 7% to 46.0% of sales +7% 9 852 ▪ Selling & Distribution expenses up 7%, mainly on +136 continued network expansion and strength of retail sales +87 ▪ Disciplined increase in Communication costs, stable as a percentage of sales at 9.8% despite phasing +

22. Slide 22: Operating Profit

    FY25 OPERATING PROFIT › Operating profit of €4.5bn ▪ -7% at actual exchange rates and -4% at constant exchange rates ▪ €72m of non-recurring charges; in addition, targeted inventory provisioning and buy-backs ▪ Growth in H2 Operating Profit versus prior-year period, led by strong sales performance a

23. Slide 23: Net Finance Costs

    FY25 NET FINANCE COSTS › €125m improvement in net finance costs to €53m ▪ €396m favourable change in fair value adjustments on financial instruments, including the non-recurrence of the Farfetch convertible note write-down ▪ Partial offset through €258m unfavourable change in FX results on derivativ

24. Slide 24: Discontinued Operations

    FY25 DISCONTINUED OPERATIONS › Sales down 13% at actual rates over the prior year; -14% at constant rates › Loss for the year at €1.0bn, improved against a €1.3bn loss communicated at H1-25, partly reflecting the evolution of Mytheresa share price in the meantime 12 months €m FY25 FY24 Change Revenu

25. Slide 25: Focus: Sale of YNAP to Mytheresa Completed on 23 April

    FOCUS|SALE OF YNAP TO MYTHERESA COMPLETED ON 23 APRIL › Completion of transaction as per terms of agreement › A 33% stake for Richemont in newly created LuxExperience BV, representing 49.7 million shares in Mytheresa › €555m net cash position at YNAP, implying a €426m cash out from Richemont at clos

26. Slide 26: Profit for the Year

    FY25 PROFIT FOR THE YEAR › Profit from continuing operations of €3.8bn down 1%, including improved net finance costs, higher share of equity-accounted contribution and lower tax impact › Profit for the year up 17% to €2.8bn, on reduced losses from discontinued operations 12 months €m FY25 FY24 Chang

27. Slide 27: Cash Flow From Operating Activities

    FY25 CASH FLOW FROM OPERATING ACTIVITIES › Cash flow from operating activities of €4.4bn › Decline of €0.3bn, largely reflecting the evolution of the operating profit from continuing operations 12 months €m FY25 FY24 Change Operating profit from continuing operations 4 467 4 794 -327 Operating loss

28. Slide 28: Capital Expenditure: Investing for Long Term Growth

    FY25 CAPITAL EXPENDITURE|INVESTING FOR LONG TERM GROWTH › Capex (incl. discontinued operations) of €1.2bn ▪ Increase of 16% largely driven by manufacturing ▪ 5.0% of sales, up from 4.4% in FY24 41% 35% 24% Buccellati – Solitaire, Riyadh Distribution Manufacturing Other Mostly upgrade Expansion of Co

29. Slide 29: Free Cash Flow

    FY25 FREE CASH FLOW › Free cash flow of €2.2bn, down by €0.6bn ▪ €253m unfavourable change in cash flow from operating activities ▪ €340m (net) from increase in capital expenditures and from acquisition of real estate assets in prime locations (€153 m and €187m, respectively) 12 months €m FY25 FY24

30. Slide 30: Balance Sheet: Maintaining Strength

    FY25 BALANCE SHEET|MAINTAINING STRENGTH €41.0bn €41.0bn Fixed assets 24% Other non-current 6% 54% Total equity assets Inventories 22% Other current assets 5% Investments in 22% Non-current money market and 22% liabilities externally managed funds 22% Current liabilities Cash 19% Assets held for sale

31. Slide 31: Dividend

    FY25 DIVIDEND › Board of Directors proposal: ▪ Ordinary dividend of CHF 3.00 per 1 A share/ 10 B shares ▪ 9% increase over prior year 4,00 CHF 3.50** Dividend per 1 A /10 B shares (in CHF) CHF 3.25** €2 072m €1 851m CHF 3.00*** 3,50 2 000 CHF 2.75 Dividend cash outflow in €m €1 710m 3,00 1 500 CHF 2

32. Slide 32: Conclusion

    Conclusion

33. Slide 33: Conclusion: Resilience & Strategic Delivery

    FY25 CONCLUSION|RESILIENCE & STRATEGIC DELIVERY › Robust Group performance in FY25 in a persistently challenging environment › Remarkable growth at Jewellery Maisons and in the retail channel › Continued investments to support Maisons’ future growth through quality distribution network, expanded man

34. Slide 34: Solid Fundamentals to Drive Long Term Value Creation

    SOLID FUNDAMENTALS TO DRIVE LONG TERM VALUE CREATION Long term view Leading Maisons Well balanced regional mix underpinned by solid with distinctive heritage financial position Sales 23% €21.4bn Europe x7 in 25 years 10% 25% Japan Americas 33% 9% Asia MEIA Pacific Net Cash €8.3bn % of sales vs (€1bn

35. Slide 35: Q&A

    Q&A

36. Slide 36: Appendix

    Appendix

37. Slide 37: Financial Highlights

    FY25 FINANCIAL HIGHLIGHTS Sales* Gross profit* Operating profit* €m CR HR €m ∆% €m ∆% FY25 21 399 +4% +4% FY25 66.9% 14 319 +2% FY25 20.9% 4 467 -7% FY24 20 616 +8% +3% FY24 68.1% 14 036 +2% FY24 23.3% 4 794 -5% FY23 19 953 +14% +19% FY23 68.7% 13 716 +23% FY23 25.2% 5 031 +34% FY22 16 748 NR NR FY2

38. Slide 38: Sales by Product Line of Continuing Operations

    FY25 SALES BY PRODUCT LINE OF CONTINUING OPERATIONS Actual Constant 12 months €m FY25 FY24 rates rates Jewellery 11 476 10 704 +7% +8% Watches 6 815 7 001 -3% -2% Leather goods and accessories 1 088 1 025 +6% +7% Clothing 870 789 +10% +9% Writing instruments 427 435 -2% -1% Other 723 662 +9% +9% Tot

39. Slide 39: Operating Result by Business Area

    FY25 OPERATING RESULT BY BUSINESS AREA 12 months €m FY25 FY24 Change Jewellery Maisons 4 896 4 713 +4% Specialist Watchmakers 175 572 -69% Other -102 -43 NR Operating result 4 969 5 242 -5% Valuation adjustments on acquisitions -49 -31 +58% Corporate costs -453 -417 +9% Central support services -313

40. Slide 40: Summary Balance Sheet and Inventory

    SUMMARY BALANCE SHEET AND INVENTORY at 31 March €m FY25 FY24 Non-current assets 12 674 11 449 Current assets 28 332 31 232 Non-current liabilities 9 065 10 254 Current liabilities 9 775 11 792 Equity attributable to owners of the parent company 22 099 20 521 Non-controlling interests 67 114 Equity 2

41. Slide 41: Retail Network

    FY25 RETAIL NETWORK 31 March 31 March Net change 2025 2024 Total Jewellery Maisons 509 484 +25 Cartier 275 273 +2 Van Cleef & Arpels 168 163 +5 Buccellati 49 48 +1 Vhernier 17 0 +17 Specialist Watchmakers 932 909 +23 IWC 232 212 +20 Panerai 184 185 -1 ▪ Internal 1 392 (+25) Jaeger-LeCoultre 177 171

42. Slide 42: Hedging

    HEDGING › 70% of our forecasted net foreign currency cash flow exposure, arising primarily in AED, HKD, JPY, SGD, USD and CNY, is hedged vs CHF and EUR* on a 12-month rolling basis › In the case of USD, the net exposure takes into account purchases of precious metals and precious stones (which are u

43. Slide 43: Definitions

    DEFINITIONS › yoy means year on year change vs year ended 31 March 2024 › Movements at constant exchange rates are calculated by translating underlying sales and operating profit in local currencies into euros in both the current period and the comparative periods at the average exchange rates appli

44. Slide 44: Richemont Maisons

    Buccellati • Cartier • Van Cleef & Arpels • Vhernier A. Lange & Söhne • Baume & Mercier • IWC • Jaeger-LeCoultre • Panerai • Piaget • Roger Dubuis • Vacheron Constantin Alaïa • Chloé • Delvaux • dunhill • G/FORE • Gianvito Rossi • Montblanc • Peter Millar • Purdey • Serapian • TimeVallée • Watchfind

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