Compagnie Financiere Richemont Sa · SIX:CFR

Compagnie Financiere Richemont Sa — Richemont — H1 FY2022 Earnings Presentation

10 slides from Compagnie Financiere Richemont Sa's earnings presentation

  1. Slide 1: Financials

    Financials At Richemont, We Craft the Future

  2. Slide 2: H1-22 Gross Profit

    H1-22 GROSS PROFIT › Gross profit up 78% 5 638 +78% › Gross margin up 550bps (+100bps vs H1-20) 3 165 to 63.3% ƒ Improved manufacturing capacity Sept Sept utilisation 21 20 in €m ƒ Favourable geographical sales mix 63.3% ƒ Higher share of retail +550bps 57.8% Sept Sept 21 20 as a % of sales

  3. Slide 3: H1-22 Operating Expenses

    H1-22 OPERATING EXPENSES › Operating expenses up 36%, below the 63% +16% 3% Selling and distribution sales increase 22% Communication Fulfilment ƒ Higher selling and distribution expenses with +39% 6% 51% Administration boutique reopenings and termination of 19% Other rental concessions and governme

  4. Slide 4: H1-22 Operating Profit

    H1-22 OPERATING PROFIT › Operating profit more than tripled ƒ Solid recovery, up 67% yo2y ƒ Operating margin increased to 21.9%; up 620bps yo2y Constant 6 months €m Sept 21 Sept 20 Change rates Sales 8 907 5 478 +63% +65% Gross profit 5 638 3 165 +78% n/a Net operating expenses -3 689 -2 713 +36% +3

  5. Slide 5: H1-22 Net Finance Costs

    H1-22 NET FINANCE COSTS › €268m higher finance costs ƒ €189m non-cash fair value loss on Farfetch investments (convertible note, option over additional shares in Farfetch China) ƒ Net losses on hedging activities compared to a gain in the prior year ƒ Partly offset by a €48m improvement in net forei

  6. Slide 6: H1-22 Profit for the Period

    H1-22 PROFIT FOR THE PERIOD › Profit rose more than six-fold to €1.2bn vs prior year period, 44% above H1-20 ƒ Significantly higher operating profit ƒ Partly offset by higher net finance costs 6 months €m Sept 21 Sept 20 Change Operating profit 1 949 452 +331% Net finance costs -385 -117 +229% Share

  7. Slide 7: H1-22 Cash Flow from Operating Activities

    H1-22 CASH FLOW FROM OPERATING ACTIVITIES › Cash flow from operating activities up 92% ƒ Higher operating profit ƒ Partly offset by controlled increase in working capital to support sales growth 6 months €m Sept 21 Sept 20 Change Operating profit 1 949 452 +1 497 Adjustment for depreciation and amor

  8. Slide 8: H1-22 Capital Expenditure

    H1-22 CAPITAL EXPENDITURE › Capex of €272m, 3.1% of sales ƒ Increased investments in store network, mostly in renovations ƒ Investments in IT, primarily at Online Distributors €272m €188m Retail 48% 45% Cartier - Singapore, Marina Bay Sands 3.4% 10% Manufacturing 13% 3.1% Other 39% 45% Sept 21 Sept

  9. Slide 9: H1-22 Free Cash Flow

    H1-22 FREE CASH FLOW › Free cash flow more than doubled vs prior year period ƒ Higher cash flow from operating activities ƒ Partly offset by increased capital expenditures and China joint venture 6 months €m Sept 21 Sept 20 Change Cash flow from operating activities 1 781 926 +855 Net acquisition of

  10. Slide 10: Balance Sheet Strength

    BALANCE SHEET STRENGTH €36.7bn €36.7bn Fixed assets 34% 50% Total equity Other non-current assets 6% Inventory 18% Other current assets 4% 26% Non-current liabilities Investments in money market and externally 16% managed funds 24% Current liabilities Cash 22% Assets Equity and liabilities

Richemont — H1 FY2022 Earnings Presentation on 6ix