Compagnie Financiere Richemont SA · SIX:CFR

Compagnie Financiere Richemont SA — Richemont — H1 FY2012 Earnings Presentation

59 slides from Compagnie Financiere Richemont SA's earnings presentation, September 2011

  1. Slide 1: Interim Results FY 12

    Interim Results FY 12 September 2011 Gary Saage, Chief Financial Officer Sophie Cagnard, Head of Investor Relations

  2. Slide 2: 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

  3. Slide 3: Results H1-12

    Results H1-12 Highlights and sales Maisons performance Operational results Conclusion Q&A session

  4. Slide 4: Solid Growth in an Uncertain Environment

    Solid Growth in an Uncertain Environment „ Eurozone difficulties „ Economic uncertainty „ Equity markets weakness CFR Quarterly Reported Sales Trend + + + + + „ Currency volatility 4 4 4 4 4 4 4 4 4 4

  5. Slide 5: H1-12 Financial Highlights

    H1-12 Financial Highlights „ Solid sales across segments & regions +29% to € 4 214m including 5 pct points of FX „ Retail outperforms wholesale +37% vs +23% „ Operating profit increase reflects operating leverage +41% to € 1 075m „ Limited increase in net profit reflecting non recurrence of one-off

  6. Slide 6: Financial & Operating Review

    Financial & Operating Review

  7. Slide 7: H1-12 Sales in Europe

    H1-12 Sales in Europe „ Solid double-digit organic growth, including Middle East and Russia „ Primarily driven by travellers „ Fuelled by all product lines H1-12 Sales = € 1 514m -DSDQ 5XVVLD 0LGGOH(DVW $PHULFDV :HVWHUQ (XURSH 6HSW 6HSW 6HSW 6HSW 2WKHU(XURSH $VLD3DFLILF % change at constant rates

  8. Slide 8: H1-12 Sales in Asia-Pacific

    H1-12 Sales in Asia-Pacific „ Above Group average double-digit growth „ Robust growth across markets and channels, positively impacted by investment in distribution networks „ Growing importance of Mainland China, now on par with the US H1-12 Sales = € 1 718m $PHULFDV -DSDQ (XURSH 6HSW 6HSW 6HSW 6HS

  9. Slide 9: H1-12 Sales in Americas

    H1-12 Sales in Americas „ Robust double-digit growth „ Mainly driven by Retail operations „ High Jewellery sales „ Wholesale growing in spite of downsizing of network H1-12 Sales = € 602m (XURSH -DSDQ 6HSW 6HSW 6HSW 6HSW $VLD3DFLILF $PHULFDV % change at constant rates

  10. Slide 10: H1-12 Sales in Japan

    H1-12 Sales in Japan „ Sales increase despite aftermath of March „ Noteworthy performance of Van Cleef & Arpels and the Specialist Watchmakers „ Unchanged long-term view H1-12 Sales = € 380m (XURSH $VLD3DFLILF 6HSW 6HSW 6HSW 6HSW $PHULFDV -DSDQ % change at constant rates

  11. Slide 11: H1-12 Sales by Network

    H1-12 Sales by Network „ Both channels growing at robust double-digit rate „ Retail leading the way despite challenging comps „ Wholesale growth in all regions reflecting good sell-out leading to sound inventory levels Retail € 2 083 m (49% of Group Sales) Wholesale € 2 131 m (51% of Group Sales) 6H

  12. Slide 12: H1-12 Maisons Highlights

    H1-12 Maisons Highlights „ Record profitability for the Jewellery Maisons „ Commendable profit at the Specialist Watchmakers „ Consistent profitability at Montblanc Maison „ Fashion & Accessories, profitable and improving „ Net-a-Porter, robust momentum

  13. Slide 13: Performance – Jewellery Maisons

    H1-12 Performance – Jewellery Maisons „ Substantial growth, broad-based (geographies and product lines) „ Record sales, profits and profitability at Cartier „ Exceptional performance of Van Cleef & Arpels „ Confirmed leadership in prestige jewellery & watches PRQWKV½P 6HSW 6HSW $FWXDO5DWHV 6DOHV 2SH

  14. Slide 14: Jewellery Maisons

    H1-12 Jewellery Maisons „ Broad-based double-digit growth in sales maintained. Key successes include: „ Bridal, Love & Trinity Bijoux, High Jewellery (noteworthy introduction of the Sortilege collection) „ Ballon Bleu – the most successful watch line – Calibre, jewellery & Haute Horlogerie watches „

  15. Slide 15: Jewellery Maisons

    H1-12 Jewellery Maisons „ Excellent growth in sales „ Outstanding High Jewellery sales, further enriched with the new Bals de Légende collection „ Significant Bijoux sales, to further benefit from the new Alhambra Vintage Pink Gold collection „ Success of the watch collection, notably the Charms Min

  16. Slide 16: Performance - Specialist Watchmakers

    H1-12 Performance - Specialist Watchmakers „ Excellent growth in sales „ Contribution margin of 27% reflecting ability to overcome higher input costs & Swiss franc strength „ Baume & Mercier restructuring in progress PRQWKV½P 6HSW 6HSW $FWXDO5DWHV 6DOHV 2SHUDWLQJFRQWULEXWLRQ &RQWULEXWLRQPDUJLQ ESV

  17. Slide 17: Specialists Watchmakers

    H1-12 Specialists Watchmakers „ Excellent performance driven by retail „ Robust growth across all markets and Asia-Pacific particularly driven by Asia-Pacific, South „ Product highlights America and Russia „ Success of Altiplano collection confirms „ Meaningful line extensions & striking leadership

  18. Slide 18: Specialists Watchmakers

    H1-12 Specialists Watchmakers „ Good sales trend, particularly in Retail „ Good initial response to re-branding and Asia-Pacific „ Capeland and Linea collections „ Sustained growth of the Manifattura re-launched Collection and watches with cases in „ Important investments to restore image high-tech

  19. Slide 19: Specialists Watchmakers

    H1-12 Specialists Watchmakers „ Solid growth in sales, particularly with „ Strong performance driven by retail & the Patrimony line, hampered by product strengthened wholesale partnerships shortages „ Asia-Pacific outperforming, esp. China & „ Highly selective distribution policy HK; Switzerland, Fr

  20. Slide 20: Specialists Watchmakers

    H1-12 Specialists Watchmakers „ Strong growth in all regions leading to „ Commendable increase in sales record sales, partly driven by the „ Solid demand for the new Excalibur re-launched Portofino line Lady „ Technical breakthrough with the new „ Continued success of the Excalibur Portuguese Sidera

  21. Slide 21: Performance – Montblanc Maison

    H1-12 Performance – Montblanc Maison „ Double-digit growth in sales driven by Asia-Pacific, watches and leather „ 16% contribution margin maintained PRQWKV½P 6HSW 6HSW $FWXDO5DWHV 6DOHV 2SHUDWLQJFRQWULEXWLRQ &RQWULEXWLRQPDUJLQ ESV

  22. Slide 22: Montblanc Maison

    H1-12 Montblanc Maison „ All regions & channels contributing to growth „ Leather and watches maintained strong momentum, esp. models with in-house movements „ Nicolas Rieussec Chronograph and Timewalker LL100 „ In High Watchmaking, Montblanc Villeret Tourbillon Bi- Cylindrique greatly acclaimed „ Sa

  23. Slide 23: Performance – Other

    H1-12 Performance – Other „ Improved profitability at Fashion & Accessories, with noteworthy performance of Alfred Dunhill and Chloé „ Net-a-Porter, cash neutral at operating level „ Contained losses at non branded manufacturers PRQWKV½P 6HSW 6HSW $FWXDO5DWHV 6DOHV 2SHUDWLQJFRQWULEXWLRQ &RQWULEXWLRQ

  24. Slide 24: Other

    H1-12 Other „ Significant sales growth across markets „ Double-digit sales growth across & channels channels „ Driven by leather (Chassis & Bourdon „ Positive debut of the Daligramme; BB, ranges) Adjani & Premier Flirt continuing on a high note „ Voice, acclaimed advertising campaign „ New Stolechni

  25. Slide 25: Other

    H1-12 Other „ Double-digit sales growth „ Strong sales growth, well above Group’s rate „ Fuelled by Europe, Asia-Pacific, and „ Expansion & automation of UK leather (Paraty and Marcie bags warehouse completed confirmed bestsellers) „ Expansion of US warehouse underway „ Design, Retail „ Launch of Ne

  26. Slide 26: Operating Profit Overview

    H1-12 Operating Profit Overview „ Operating profit growing faster than sales „ Record operating margin, at 25.5% PRQWKV½P 6HSW 6HSW 6DOHV *URVVSURILW 1HWRSHUDWLQJH[SHQVHV 6HOOLQJDQGGLVWULEXWLRQH[SHQVHV &RPPXQLFDWLRQH[SHQVHV $GPLQLVWUDWLRQH[SHQVHV 2WKHULQFRPH H[SHQVHV ,)56RSHUDWLQJSURILW *URVVPDUJLQS

  27. Slide 27: Gross Profit

    H1-12 Gross Profit „ Evolution reflects stronger Swiss Franc, higher costs and dilution of Net-a-Porter „ Mitigated by pricing power and higher network selectivity ½ PLOOLRQ $VDRIVDOHV ESV ESV ESV 6HSW 6HSW 6HSW 6HSW 6HSW 6HSW 6HSW 6HSW

  28. Slide 28: Operating Expenses

    H1-12 Operating Expenses „ Operating expenses up by 18%, well below the 29% rate of sales growth 6HSW 1HWD 1HZ $ 3 2WKHU ); 6HSW 3RUWHU ERXWLTXHV 6HSW6HSW 6HSW6HSW 6HSW6HSW 6HSW6HSW 6HSW6HSW 1HWRSHUDWLQJ 6HOOLQJDQG &RPPXQLFDWLRQ $GPLQLVWUDWLRQ 2WKHUH[SHQVHV H[SHQVHV GLVWULEXWLRQ $VDRIVDOHV

  29. Slide 29: Profit

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  30. Slide 30: Net Finance Cost

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  31. Slide 31: Cash Flow From Operations

    H1-12 Cash Flow From Operations „ Consistent cash flow from operations 6HSW „ Swing in working capital reflecting sales growth & stock levels 6HSW 6HSW PRQWKV½P 6HSW 6HSW 2SHUDWLQJSURILW 'HSUHFLDWLRQ 2WKHULWHPV 0RYHPHQWLQZRUNLQJFDSLWDO &DVKIORZIURPRSHUDWLRQV

  32. Slide 32: Property, Plant and Equipment

    H1-12 Property, Plant and Equipment *URVV ½ P Lancel, Stolechnikov Flagship, Moscow 'LVSRVDOV P + 87% *URVV ½ P *URVVDVRI6DOHV 'LVSRVDOV P Roger Dubuis, Galaxy Casino, Macau 1HW P 1HW P 6HSW 6HSW 6HSW 6HSW Cartier, Hangzhou Euro street , China

  33. Slide 33: Property, Plant and Equipment

    H1-12 Property, Plant and Equipment ½ P Vacheron Constantin, Madison Ave, NY 5HWDLO ½ P 0DQXIDFWXULQJ IWC 075 Pudong, Shanghai, China 5HWDLO 0DQXIDFWXULQJ 2WKHU 2WKHU 6HSW 6HSW Lange & Söhne, HK

  34. Slide 34: Free Cash flow

    H1-12 Free Cash flow PRQWKV½P 6HSW 6HSW &DVKIORZIURPRSHUDWLRQV 1HWFKDQJHLQSURSHUW\SODQW HTXLSPHQW 1HWFKDQJHLQLQWDQJLEOHDVVHWV 1HWFKDQJHLQRWKHUORQJWHUPDVVHWV 7D[DWLRQSDLG 1HWLQWHUHVWLQFRPH H[SHQVH 7RWDOIUHHFDVKLQIORZ

  35. Slide 35: Strong Balance Sheet

    Strong Balance Sheet ½EQ ½EQ )L[HG$VVHWV 2WKHU/7$VVHWV 7RWDO(TXLW\ ,QYHQWRULHV 2WKHU&XUUHQW$VVHWV 1RQ&XUUHQW/LDEOLOLWLHV 67,QYHVWPHQWV &XUUHQW/LDEOLOLWLHV &DVK $VVHWV /LDELOLWLHV

  36. Slide 36: Conclusion

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  37. Slide 37: Latest Trends: October 2011

    Latest Trends: October 2011 „ By network „ +26% at cc: retail + 32%, wholesale + 21% „ By region „ Momentum unchanged since September trading statement „ Single-digit growth in Japan „ Double-digit growth in Europe (albeit at a slower rate), Asia-Pacific and Americas

  38. Slide 38: Conclusion: Core Strengths

    Conclusion: Core Strengths „ Premium portfolio of prestigious Maisons „ Leadership in prestige jewellery & watches „ Significant growth potential driven by universal appeal of European high quality goods „ Broad based exposure to clientele from growth and established markets „ Strong balance sheet

  39. Slide 39: Q&A Session

    Q&A Session

  40. Slide 40: Appendix

    Appendix RICHEMONT

  41. Slide 41: Financial Highlights

    Financial Highlights 6DOHV½ P *URVVPDUJLQ½ P 2SHUDWLQJSURILW½ P )< )< )< 6HSW 6HSW )< )< )< 6HSW 6HSW )< )< )< 6HSW 6HSW 7D[DWLRQUDWHV 1HWSURILWOX[XU\½ P )< )< )< 6HSW 6HSW )< )< )< 6HSW 6HSW 1HWFDVK½ P &DVKIORZIURPRSHUDWLRQV½ P 521$ )< )< )< 6HSW 6HSW )< )< )< 6HSW 6HSW )< )< )< )<

  42. Slide 42: Hedging Policy

    Hedging Policy „ 70% of our forecasted net foreign currency cash flow exposure arising in USD block, HKD, JPY,CNY is hedged versus CHF and Euro „ In the case of USD, the net exposure takes into account purchases of precious metals and diamonds „ Hedges are entered into each month in respect of forec

  43. Slide 43: Foreign Currency Hedging Contracts

    Foreign Currency Hedging Contracts PRQWKV PRQWKV DYHUDJH DYHUDJH +HGJHUDWHWR $FWXDOUDWHWR +HGJHUDWHWR 9HUVXVWKH&+) 6HSW 6HSW 0DUFK <(1 86 +. Average Rates against the CHF PRQWKVWR6HSW PRQWKVWR6HSW <(1 86 +.

  44. Slide 44: H1-12 Sales by Region

    H1-12 Sales by Region 5XVVLD -DSDQ 0LGGOH(DVW $PHULFDV :HVWHUQ(XURSH $VLD3DFLILF 2WKHU(XURSH PRQWKV½P 6HSW 6HSW &RQVWDQWUDWHV $FWXDOUDWHV (XURSH $VLD3DFLILF $PHULFDV -DSDQ 7RWDO

  45. Slide 45: H1-12 Sales by Product line

    H1-12 Sales by Product line -HZHOOHU\ /HDWKHU*RRGV :DWFKHV :ULWLQJ ,QVWUXPHQWV &ORWKLQJ 2WKHU PRQWKV½P 6HSW 6HSW &RQVWDQWUDWHV $FWXDOUDWHV :DWFKHV -HZHOOHU\ /HDWKHU*RRGV :ULWLQJ,QVWUXPHQWV 2WKHU 7RWDO

  46. Slide 46: H1-12 Sales by Business Area

    H1-12 Sales by Business Area 6SHFLDOLVW :DWFKPDNHUV 0RQWEODQF 0DLVRQ -HZHOOHU\ 0DLVRQV 2WKHU PRQWKV½P 6HSW 6HSW &RQVWDQWUDWHV $FWXDOUDWHV -HZHOOHU\0DLVRQV 6SHFLDOLVWZDWFKPDNHUV 0RQWEODQF0DLVRQ 2WKHU 7RWDO

  47. Slide 47: Reported Operating Result by Business Area

    H1-12 Reported Operating Result by Business Area PRQWKV½P 6HSW 6HSW &KJH 2SHUDWLQJFRQWULEXWLRQ -HZHOOHU\0DLVRQV 6SHFLDOLVWZDWFKPDNHUV 0RQWEODQF0DLVRQ 2WKHU 6XEWRWDO &RUSRUDWHFRVWVQHW &HQWUDOVXSSRUWVHUYLFHV 2WKHURSHUDWLQJ H[SHQVH LQFRPH QD 2SHUDWLQJSURILW 47

  48. Slide 48: H1-12 Profit

    H1-12 Profit PRQWKV½P 6HSW 6HSW 6DOHV &RVWRIVDOHV *URVVPDUJLQ 1HWRSHUDWLQJH[SHQVHV 2SHUDWLQJSURILW 1HWILQDQFLDO FRVWV LQFRPH 6KDUHRISRVWWD[UHVXOWVRIDVVRFLDWHV 3URILWEHIRUHWD[DWLRQ 7D[DWLRQ 3URILWIRUWKHSHULRG &DVKIORZIURPRSHUDWLRQV P 1HWFDVK P 48

  49. Slide 49: Summary Balance Sheet

    Summary Balance Sheet ½P 6HSW 6HSW )L[HGDVVHWV 2WKHUORQJWHUPDVVHWV 1HWFXUUHQWDVVHWV /RQJWHUPOLDELOLWLHVH[FOXGLQJERUURZLQJV 1HWRSHUDWLQJDVVHWV 1HWFDVK 1HWDVVHWV (TXLW\ 6KDUHKROGHUV HTXLW\ 1RQFRQWUROOLQJLQWHUHVWV

  50. Slide 50: Inventory

    Inventory ½P 6HSW 6HSW ½P )LQLVKHGJRRGV 5DZPDWHULDOVDQGZRUNLQSURJUHVV 7RWDO 5RWDWLRQ 6HSW 6HSW 1XPEHURIPRQWKVRI&2*6

  51. Slide 51: Retail Network

    Retail Network 6HSW ,QWHUQDO )UDQFKLVHG YV3<,QWHUQDO YV3<)UDQFKLVHG 0DUFK 0RQWEODQF &DUWLHU $OIUHG'XQKLOO /DQFHO &KORp 9DQ&OHHI $USHOV 3LDJHW 6KDQJKDL7DQJ -DHJHU/H&RXOWUH ,:& 9DFKHURQ&RQVWDQWLQ 2IILFLQH3DQHUDL 2WKHUV 727$/ 2WKHUV$/DQJH 6|KQH%DXPH 0HUFLHU5RJHU'XEXLV3XUGH\$]]HGLQH$ODwD

  52. Slide 52: H1-12 Main Product Launches

    H1-12 Main Product Launches Jewellery Jewellery „ Sortilège, High Jewellery collection „ Bals de Légende, High Jewellery „ Blossom, Cartier’s Essentials „ Alhambra Vintage, Pink Gold „ Ballerine, Curved wedding band „ Solitaire Perlée, Bridal, Japan launch „ Sweet Trinity, Bijoux Watches Watches „ F

  53. Slide 53: H1-12 Main Product Launches

    H1-12 Main Product Launches Watches Watches „ Piaget Polo chronograph bicolor „ Luminor 1950, 8 Days Titanio Left-Handed - 47mm „ Altiplano paved „ Luminor 1950, Chrono Monopulsante 8 Days „ Dancing Light roman numerals Titanio Left-Handed - 44mm „ New Piaget Polo bracelet „ Luminor Submersible 1950

  54. Slide 54: H1-12 Main Product Launches

    H1-12 Main Product Launches Watches Watches „ Patrimony Contemporaine Excellence Platine „ Portuguese Siderale Scafusia „ Patrimony Traditionnelle World Time „ Portofino Automatic „ Historiques Aronde „ Portofino Chronograph „ Métiers d‘Art “La Symbolique des Laques” „ Portofino Hand-Wound Eight Day

  55. Slide 55: H1-12 Main Product Launches

    H1-12 Main Product Launches Watches Watches „ Saxonia Automatic „ Capeland „ Saxonia Dual Time „ Linea „ Richard Lange Tourbillon “Pour le Mérite” „ Zeitwerk Striking Time

  56. Slide 56: H1-12 Main Product Launches

    H1-12 Main Product Launches Watches Watches „ Reverso Ultra Thin tribute to 1931 „ Excalibur Lady collection „ Duomètre à Quantième Lunaire „ Master Lady Night & Day „ Memovox Tribute to Deep Sea

  57. Slide 57: H1-12 Main Product Launches

    H1-12 Main Product Launches Watches Leather „ Villeret Tourbillon Bi-Cylindrique „ Bladon Drill „ Rieussec Anniversary Edition „ Bourdon SLG & LLG „ TimeWalker TwinFly Chronograph Writing Instruments „ Menswear „ Meisterstück Tribute to the Mont Blanc „ Fall Collection „ Patron of Art Maecenas „ Win

  58. Slide 58: H1-12 Main Product Launches

    H1-12 Main Product Launches Ladies Handbags Leather „ Daligramme „ Madeleine bag „ Coup d‘Eclat „ Gabby bag „ Janet bag Men Lines „ Mercure Ready-To-Wear „ Grand Hotel N°7 „ Fall Collection „ Winter Collection

  59. Slide 59: Richemont

    RI CHEMONT

Richemont — H1 FY2012 Earnings Presentation on 6ix