Compagnie Financiere Richemont Sa · SIX:CFR

Compagnie Financiere Richemont Sa — FY2022 Earnings Presentation

11 slides from Compagnie Financiere Richemont Sa's earnings presentation, 2022

  1. Slide 1: Financials

    Financials At Richemont, We Craft the Future

  2. Slide 2: FY22 Gross Profit

    FY22 GROSS PROFIT › Gross profit up 53% to €12 027m › Gross margin up by 290bps to 62.7% ƒ Favourable regional and channel sales mix ƒ Higher manufacturing capacity utilisation, select price increases ƒ €70m one-time charge relating to suspension of Russian operations +2.9ppt 62.7% 59.8% FY21 Fx Imp

  3. Slide 3: FY22 Operating Expenses

    FY22 OPERATING EXPENSES › Operating expenses increased +35%, lower than rate of sales +18% 4% increase at +46% 20% 48% +37% 6% ƒ Selling and distribution expenses higher partly due to store network development 22% +29% +81% ƒ Communication expenses back to pre-Covid levels at 10% Selling and Distrib

  4. Slide 4: FY22 Operating Profit

    FY22 OPERATING PROFIT › Operating profit more than doubled to €3 390m; €3 558m excluding one-time item of €168m › Operating margin improved by 650bps to 17.7% Constant 12 months €m FY22 FY21 Change rates Sales 19 181 13 144 +46% +44% Gross profit 12 027 7 861 +53% n/a Net operating expenses -8 637 -

  5. Slide 5: FY22 Net Finance (Costs)/Income

    FY22 NET FINANCE (COSTS)/INCOME › Net finance costs of €844m, mainly a result of ƒ Fair value adjustments on (Farfetch) financial assets and short-term bond funds ƒ Foreign exchange losses on monetary items mostly due to a stronger CHF (cash and non-cash) 12 months €m FY22 FY21 Change Financial expe

  6. Slide 6: FY22 Profit for the Year

    FY22 PROFIT FOR THE YEAR › Profit up 61% to €2 079m ƒ Sharp increase in operating profit ƒ Negative swing on net finance costs › Profit margin of 10.8%, up 100bps 12 months €m FY22 FY21 Change Operating profit 3 390 1 478 +129% Net finance (costs)/income - 844 25 NR Share of equity-accounted investm

  7. Slide 7: FY22 Cash Flow from Operating Activities

    FY22 CASH FLOW FROM OPERATING ACTIVITIES › Cash flow from operating activities up 44% ƒ Significant growth in operating profit ƒ Measured increase in working capital 12 months €m FY22 FY21 Change Operating profit 3 390 1 478 +1 912 Adjustment for depreciation and amortisation 1 553 1 522 +31 Adjustm

  8. Slide 8: FY22 Capital Expenditure

    FY22 CAPITAL EXPENDITURE › Capex up 70%; below 5% of sales ƒ Investments in store network, mostly at Cartier ƒ Manufacturing investments at Jewellery Maisons and Specialist Watchmakers ƒ IT spending, mainly at YOOX NET-A-PORTER €871m €513m Cartier – Milano Montenapoleone Distribution 46% 45% Manufac

  9. Slide 9: FY22 Free Cash Flow

    FY22 FREE CASH FLOW › Free cash flow up 68% to €3bn ƒ Strong cash flow from operating activities ƒ Increase in capital expenditures 12 months €m FY22 FY21 Change Cash flow from operating activities 4 638 3 218 +1 420 Net acquisition of tangible assets -736 -372 -364 Net acquistion of intangible asse

  10. Slide 10: Balance Sheet Strength

    BALANCE SHEET STRENGTH €40.0bn €40.0bn Fixed assets 31% 50% Total equity Other non-current assets 5% Inventory 18% Other current assets 4% Investments in money 24% Non-current liabilities market and externally 17% managed funds 26% Current liabilities Cash 25% Assets Equity and liabilities

  11. Slide 11: Dividend

    DIVIDEND › Board of Directors proposal: ƒ Ordinary dividend of CHF 2.25 per 1 A share/ 10 B shares, increasing by 13% over prior year ƒ Special dividend of CHF 1.00 per 1 A share/ 10 B shares 10-year CAGR on ordinary dividend of 15% 1400 3.00 Dividend per 1A/10B shares (in CHF) Dividend cash outflow

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