Compagnie Financiere Richemont Sa · SIX:CFR
Compagnie Financiere Richemont Sa — FY2024 Earnings Presentation
43 slides from Compagnie Financiere Richemont Sa's earnings presentation, May 20, 2024
Slide 1: FY24 Annual Results 31 March 2024
FY24 ANNUAL RESULTS 31 MARCH 2024
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
Slide 3: Agenda
› Highlights › Sales › Business areas › Financials › Conclusion › Q&A › Appendix
Slide 4: Highlights
Highlights AT RICHEMONT We Craft the Futave
Slide 5: FY24 Key Figures
FY24 KEY FIGURES › All-time high of €20.6bn amid continued Sales macroeconomic and geopolitical uncertainty in €m FY24 20 616 +8% at constant exchange rates (cr), +3% at actual FY23 19 953 exchange rates (ar) Operating profit › Operating profit of €4.8bn in €m FY24 23.3% 4 794 +13% at cr, -5% at
Slide 6: Highlights: Solid Underlying Performance
FY24 HIGHLIGHTS: SOLID UNDERLYING PERFORMANCE › Sales growth in uncertain environment fuelled by All regions, led by Asia Pacific in value terms, and by Japan in percentage terms Jewellery Maisons and Retail Strong Q1 and Q3 performance; +2% at cr in Q4, on challenging comparative of +21% › Op
Slide 7: Sales
Sales Van Cleef & Arpels Haute Joaillerie, place Vendome since 1906 AT RICHEMONT We Craft the Fide <>
Slide 8: FY24: Sales Growth Across All Regions
FY24: SALES GROWTH ACROSS ALL REGIONS % of sales, % change at actual rates, % change at constant rates › 3% growth in Europe, supported by resilient domestic spending on 22% demanding comparatives +2% +3% › Double-digit increase in Asia Pacific, Europe Japan with most markets reporting growth 22% 8%
Slide 9: FY24: Sales Growth Driven by Retail
FY24: SALES GROWTH DRIVEN BY RETAIL › Retail: continued channel outperformance with sales up 11% driven by double-digit growth at the Jewellery Maisons and Specialist Watchmakers and mid-single digit growth at the Fashion & Accessories Maisons; now 69% of Group sales › Online retail: -2% with the Fa
Slide 10: Business areas
Business areas AT RICHEMONT We Craft the Fide
Slide 11: Jewellery Maisons: Solid Results
FY24 JEWELLERY MAISONS: SOLID RESULTS › Sales increased by 6% (+12% at cr) to €14.2bn Increases in all regions, with particular 20% strength in Asia Pacific, Japan and Middle +4% Europe East & Africa 10% Japan Growth in most channels 21% +3% +11% Americas 9% 40%, +7% › Operating margin at 33.1%
Slide 12: Jewellery Maisons: Investing for the Future
FY24 JEWELLERY MAISONS: INVESTING FOR THE FUTURE › Broad-based performance across iconic watch and jewellery collections Jewellery: Trinity (100 years’ anniversary) and Clash (Cartier), Alhambra and Fauna (Van Cleef & Arpels) and Opera Tulle and Macri (Buccellati) Watches: Panthère and Baignoire
Slide 13: Specialist Watchmakers: Robust Retail Growth
FY24 SPECIALIST WATCHMAKERS: ROBUST RETAIL GROWTH › Sales lower by 3% (+2% at cr) to €3.8bn Growth in Asia Pacific excluding China, 20% -2% Japan and Middle East & Africa more than Europe offset by declines in other locations 14% 7% Japan 6% increase in retail (+12% cr) partially -9% +7% 7% miti
Slide 14: SWM: Retailisation and Client Engagement
FY24 SWM: RETAILISATION AND CLIENT ENGAGEMENT › Varied performance across Maisons with continued resilience of iconic collections, including Lange 1 (A. Lange & Söhne), Portugieser (IWC), Reverso (Jaeger-LeCoultre), Luminor (Panerai), Polo (Piaget) and Traditionnelle (Vacheron Constantin) › Strength
Slide 15: 'Other': Resilient F&A Performance
FY24 ‘OTHER’: RESILIENT F&A PERFORMANCE › Sales broadly in line with FY23 at €2.6bn (-2% ar, +1% cr) 33% Resilience of largest region (Americas) -3% mitigates softness elsewhere Europe 5% Japan Muted retail sales growth offset by lower 37% +2% 20%, -4% -9% sales in other channels Americas 5% Asi
Slide 16: F&A Maisons: Unrelented Focus on Creativity
FY24 F&A MAISONS: UNRELENTED FOCUS ON CREATIVITY › Sales growth in most Maisons with heightened focus on creativity Another successful year for Alaïa and Peter Millar Positive dynamic for high value items and large leather goods at Montblanc Acclaimed first collections of Chemena Kamali at Chl
Slide 17: Financials
Financials AT RICHEMONT We Craft the Frdawe
Slide 18: Higher FY24 Gross Profit
HIGHER FY24 GROSS PROFIT › Gross profit up 2% to €14bn › Gross margin down 60bps to 68.1% Adverse foreign exchange movements (-190bps) and higher raw materials cost Tempered by targeted price increases and favourable geographical mix +130bps -190bps 70.0% 68.7% 68.1% FY23 Market/ Other FY24 FX i
Slide 19: Operating Expenses Tightly Controlled
FY24 OPERATING EXPENSES TIGHTLY CONTROLLED › Operating expenses up +6% in inflationary environment +6% Increased S&D expenses on inflation-driven 9 242 0 operating cost increases, strength of retail sales +187 and expanded network +317 +66 -13 Higher communication investments, particularly at th
Slide 20: Robust FY24 Operating Profit
ROBUST FY24 OPERATING PROFIT › Operating profit of €4.8bn Higher sales and gross profit; well-controlled costs Unfavourable currency movements: -5% at ar, +13% at cr Operating margin of 23.3%, down 190bps at ar, up 100bps at cr › Reached €4.85bn excluding non-recurring charges of €58m 12 month
Slide 21: Improved FY24 Net Finance Costs
IMPROVED FY24 NET FINANCE COSTS › €136m improvement in net finance costs to €178m reflects €123m increase in FX gains on derivatives under the Group’s hedging programme €62m positive variance in interest income/expense Partially offset by a €63m increase in fair value losses on financial instr
Slide 22: Discontinued Operations
FY24 DISCONTINUED OPERATIONS › Sales down 14% at ar over the prior year; -12% at cr › Operating loss of €1.4bn largely reflecting €1.3bn non-cash write down of net assets held for sale (to the net working capital position of €925m) › Remaining classified as asset ‘held for sale’ 12 months €m FY24 FY
Slide 23: Solid FY24 Profit from Continuing Operations
SOLID FY24 PROFIT FROM CONTINUING OPERATIONS › Profit from continuing operations of €3.8bn includes improved net finance costs › Profit for the year rose to €2.4bn due to a lower loss from discontinued operations 12 months €m FY24 FY23 Change Operating profit 4 794 5 031 -5% Net finance costs -178 -
Slide 24: Higher FY24 Cash Flow from Operating Activities
HIGHER FY24 CASH FLOW FROM OPERATING ACTIVITIES › Cash flow from operating activities, up 5% to €4.7bn Includes YNAP Primarily reflects controlled working capital with lower inventory build-up and benefit of cash inflow from the settlement of currency derivative 12 months €m FY24 FY23 Change Ope
Slide 25: Sustained FY24 Capital Expenditure
SUSTAINED FY24 CAPITAL EXPENDITURE › Capex* of €1.0bn; 4.4% of sales Primarily renovation, relocation and extension of internal store network Investments in manufacturing facilities in Switzerland, France and Italy Investments in technology Cartier – Mumbai, Jio World Plaza FY24 4.4% FY23 4.4%
Slide 26: Increased FY24 Free Cash Flow of €2.9bn
INCREASED FY24 FREE CASH FLOW OF €2.9BN › €82m improvement in free cash flow due to €205m increase in cash flow from operating activities Partially offset by higher net capex and lease liability repayments 12 months €m FY24 FY23 Change Cash flow from operating activities 4 696 4 491 +205 Net acq
Slide 27: Robust Balance Sheet
ROBUST BALANCE SHEET €42.7bn €42.7bn Fixed assets 21% Other non-current assets 6% 48% Total equity Inventory 19% Other current assets 4% Investments in money market and externally 21% 24% Non-current liabilities managed funds Assets held for sale 4% 2% Liabilities held for sale 26% Current liabiliti
Slide 28: Dividend
FY24 DIVIDEND › Board of Directors proposal: Ordinary dividend of CHF 2.75 per 1 A share/ 10 B shares 10% increase of ordinary dividend over prior year CHF 3.50 4,00 Warrant and Special CHF 3.25 €2 072 Dividend per 1 A /10 B shares (in CHF) €1 851m 3,50 2 000 Ordinary Dividend cash outflow in €m
Slide 29: Conclusion
Conclusion Z = S . . S 3 Ric AT
Slide 30: ESG Highlights: Consolidating Our Approach
FY24 ESG HIGHLIGHTS: CONSOLIDATING OUR APPROACH › ESG Approach ESG Management System informed by ESG Risks & Opportunities Assessment Richemont Sustainability Online Academy Non-Financial Report in accordance with GRI Standards and Art. 964a-c of Swiss Code of Obligations; selected GRI indicat
Slide 31: Specialist Watchmakers: Sustainable Model Centered on Clients
SPECIALIST WATCHMAKERS: BUILDING A SUSTAINABLE MODEL CENTERED ON CLIENTS AND TRUE DEMAND › Nurturing brand equity, craftsmanship and creativity › Accelerating direct-to-client engagement › Knowing our clients to better serve them › Developing multi-market strength, mastering excellence in end-to-end
Slide 32: FY24: Well-Positioned for the Long Term
FY24: WELL-POSITIONED FOR THE LONG TERM › Solid financial performance delivered in uncertain environment Sales growth in all regions at cr and at ar Strong performance from Jewellery Maisons and retail; resilience of Specialist Watchmakers and Fashion & Accessories Maisons Increased operating
Slide 33: Q&A
AT RICHEMONT We Craft the Eutiwe Q&A
Slide 34: Appendix
Appendix AT RICHEMONT We Craft the Fada
Slide 35: Financial Highlights
FY24 FINANCIAL HIGHLIGHTS Sales* Gross profit* Operating profit* CR HR ∆% ∆% €m €m €m 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 FY22 66.7% 11 176 NR FY22 22.4% 3 753 NR FY21 13 144 -5% -8% FY21
Slide 36: ESG Performance Highlights
ESG PERFORMANCE HIGHLIGHTS S U S T A I N A B I L I T Y A P P R O A C H Established ESG Management Launched System Sustainability Online informed by Academy ESG Risk & Opportunity for training & Assessment 11.6 in Top 4% development Updated February 2024 A leader since April 2021 A C T I N G O N O U
Slide 37: Sales by Product Line of Continuing Operations
FY24 SALES BY PRODUCT LINE OF CONTINUING OPERATIONS Actual Constant 12 months €m FY24 FY23 rates rates Jewellery 10 704 10 036 +7% +12% Watches 7 001 6 983 0% +5% Leather goods and accessories 1 025 963 +6% +10% Clothing 789 842 -6% -3% Writing instruments 435 456 -5% -2% Other 662 673 -2% +1% Total
Slide 38: Operating Result by Business Area
FY24 OPERATING RESULT BY BUSINESS AREA 12 months €m FY24 FY23 Change Jewellery Maisons 4 713 4 684 +1% Specialist Watchmakers 572 738 -22% Other -43 59 NR Operating result 5 242 5 481 -4% Valuation adjustments on acquisitions -31 -23 +35% Corporate costs -417 -427 -2% Central support services -289 -
Slide 39: Summary Balance Sheet and Inventory
SUMMARY BALANCE SHEET AND INVENTORY at 31 March €m FY24 FY23 Non-current assets 11 449 10 519 Current assets 31 232 30 368 Non-current liabilities 10 254 9 560 Current liabilities 11 792 12 308 Equity attributable to owners of the parent company 20 521 18 959 Non-controlling interests 114 60 Equity
Slide 40: Retail Network
FY24 RETAIL NETWORK 31 March 31 March Net change 2024 2023 Total Jewellery Maisons 484 465 +19 Cartier 273 272 +1 Van Cleef & Arpels 163 150 +13 Buccellati 48 43 +5 Specialist Watchmakers 909 871 +38 IWC 212 206 +6 Panerai 185 169 +16 Jaeger-LeCoultre 171 166 +5 Internal 1 367 (+81) Piaget 136 132
Slide 41: 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
Slide 42: Definitions
DEFINITIONS › yoy means year on year change vs year ended 31 March 2023 › Abbreviations: ar stands for actual rates and cr for constant rates › Movements at constant exchange rates are calculated by translating underlying sales in local currencies into euros in both the current period and the compar
Slide 43: Richemont Maisons
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 & Co
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