Annual Report 2024
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Contents
Message from the Chair | 2 | |
Operational Organization | 4 | |
Organization and Distribution in the World | 5 | |
Organs of Swatch Group | 6 | |
Board of Directors | 6 | |
Executive Group Management Board | 8 | |
Extended Group Management Board | 9 | |
Art & Philanthropy | 11 | |
Brands | 15 | |
Watches and Jewelry | 16 | |
Retailing and Presence | 78 | |
Production | 85 | |
Electronic Systems / Corporate | 97 | |
Sustainability | 109 | |
Corporate Governance | 113 | |
Financial Statements 2024 | 127 | |
Consolidated Financial Statements | 128 | |
Financial Statements of The Swatch Group Ltd | 174 | |
Compensation Report 2024 | 189 |
Swatch Group's Annual Report and Compensation Report are published in French, German and English. Pages 109 to 188 as well as the Compensation Report are originally published in German.
This original version is binding. © The Swatch Group Ltd, 2025
SWATCH GROUP / ANNUAL REPORT / 2024 CONTENTS
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Message from the Chair
Ladies and Gentlemen,
Dear Fellow Shareholders,
Last year presented major challenges to all of us and to Swatch Group. Despite an unfavorable global economic environment and, in particular, weak consumer spending in China, we stuck to our strategy of safeguarding jobs and maintaining full and unrestricted capacity utilization at our production sites. We decided to protect and support the strengths and the soul of Swatch Group: our employees, our know-how, and our production. This has, of course, impacted our profitability; however, the Group is so solid - particularly with an equity of 87.3% -that we can afford to do this.
We are especially proud of our more than 100 facto- ries, which are spread throughout Switzerland. Producing locally in this country is an integral part of our DNA and our history. It guarantees compliance with the highest quality standards and at the same time, makes an enormous contribution to the local econo- my. This approach also reflects our commitment to designing exceptional long-lasting products that can stand the test of time and inspire consumers around the world.
Innovation is another one of Swatch Group's core values. With 196 patents registered last year, we once again demonstrated our leading position in this area. This progress is a testament to our ability to constantly push the boundaries of technology and design to create unique and revolutionary products. Our commitment to research and development is crucial to remaining at the forefront of the watch industry and offering our customers watches that embody both tradition and modernity.
At the same time, we know that the future of Swatch Group, and indeed of the entire watchmaking industry, can only be secured by training and supporting the
next generation. We are proud to be the largest trainer in the Swiss watch industry, with around 600 apprentices in our various companies. These young talents are the future of our Group and our industry, and we actively invest in their development and train- ing. By sharing our expertise and nurturing our pas- sion, we are strengthening the basis for our long-term success.
We have made significant progress in sustainable development, a central pillar of our future strategy. As our Sustainability Report shows, we have taken concrete initiatives to reduce our environmental footprint, improve the energy efficiency of our production sites and increase the use of responsible materials. This progress demonstrates our commitment to being part of the solution to environmental challenges by offering products that meet both our values and our growing expectations and those of our customers in terms of sustainability.
I would like to take this opportunity to express my gratitude to our Board of Directors, our Group Management Board and our more than 32 000 employ- ees, who have shown admirable commitment and soli- darity. They are Swatch Group's beating heart and it is thanks to them that we continue to create products that fascinate and inspire people all over the world.
In 2024, Swatch Group generated a Group profit of 219 million Swiss francs, with an operating profit of 304 million Swiss francs. Swatch Group has developed very well in recent years. Sales amounted to 6735 million Swiss francs. The Swatch Group Board of Directors will propose a dividend of 0.90 Swiss francs per registered share and 4.50 Swiss francs per bearer share at the Annual General Meeting on May 21. This underscores our solidarity with all our employees.
SWATCH GROUP / ANNUAL REPORT / 2024 MESSAGE FROM THE CHAIR
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These are not exactly gigantic figures. That is why we have decided to publish our Annual Report and a Sustainability Report in a minimalist format. All jokes aside, the history of watchmaking has always been a constant quest for miniaturization. The ingenuity of watchmakers has made the transition from church clocks to wristwatches possible. Swatch Group is a pioneer in this field and is constantly pushing back the boundaries of miniaturization in nanomechanics, nano- electronics, and so on. As a tribute to the Group's expertise in the infinitely small and with a little wink, the 2024 Annual Report is published in this micro for- mat. However, it is also available in a more familiar form on the Swatch Group website and can be downloaded there.
Dear Shareholders, your unwavering support for the Group Executive Board gives all of us motivation and strength. You have believed in our decisions, and this trust is not only a source of encouragement but also an incentive to persevere and continue pursuing our strategy.
We see encouraging signs, and with the solid industrial foundation we have maintained, we are ready to take advantage of the many opportunities on the hori- zon. Swatch Group expects substantial improvements in sales, operating profit and cash flow in 2025.
Thank you for your continued belief in Swatch Group, our vision and our ability to turn yesterday's challenges into tomorrow's successes. Together, we will build an even brighter future for our Group. We look forward to sharing new successes with you in the years to come.
Nayla Hayek
Chair of the Swatch Group Board of Directors
SWATCH GROUP / ANNUAL REPORT / 2024 MESSAGE FROM THE CHAIR
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Operational Organization
as at December 31, 2024
Swatch Group Brands and Companies
Watches | Retailing | Production | Electronic | Corporate | ||||
Systems | ||||||||
Prestige and | Tourbillon | Watches | EM Microelectronic | Swatch Group | ||||
Luxury Range | ETA | Recherche and | ||||||
Breguet | Hour Passion | Meco | Renata | Development | ||||
Harry Winston | CHH Microtechnique | Asulab | ||||||
Micro Crystal | ||||||||
Blancpain | Nivarox-FAR | Moebius | ||||||
Glashütte Original | Comadur | CDNP | ||||||
Swiss Timing and | ||||||||
Jaquet Droz | Rubattel et | |||||||
Omega | Weyermann | ST Sportservice | ICB Ingénieurs | |||||
MOM Le Prélet | Conseils en Brevets | |||||||
High Range | ||||||||
Universo | ||||||||
Swatch Group | ||||||||
Longines | Manufacture Ruedin | |||||||
Rado | Lascor | Quality Management | ||||||
Union Glashütte | Novi | |||||||
Swatch Group | ||||||||
The Swatch Group | ||||||||
Middle Range | Assembly | Services | ||||||
Tissot | European | |||||||
Jewelry | ||||||||
Balmain | Distribution Center | |||||||
Certina | Dress Your Body (DYB) | Swatch Group | ||||||
Mido | Logistics | |||||||
Hamilton | Swatch Group | |||||||
Information | ||||||||
Basic Range | ||||||||
Technologies | ||||||||
Swatch | Swatch Group | |||||||
Flik Flak | Corporate | |||||||
Customer Service | ||||||||
Real Estate | ||||||||
Development | ||||||||
Swatch Group | ||||||||
Immeubles | ||||||||
Belenos Clean Power | ||||||||
SWATCH GROUP / ANNUAL REPORT / 2024 OPERATIONAL ORGANIZATION
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Organization and Distribution in the World
as at December 31, 2024
Swatch Group Subsidiaries
Europe | Americas | Oceania | Far East | Middle East | |||||
Austria | Canada | Australia | China | United Arab Emirates | |||||
Belgium | Mexico | Hong Kong | Saudi Arabia | ||||||
France | USA | India | Turkey | ||||||
Germany | Japan | ||||||||
Greece | Macau | ||||||||
Italy | Malaysia | ||||||||
Luxemburg | Singapore | ||||||||
The Netherlands | South Korea | ||||||||
Nordic Countries | Taiwan | ||||||||
(Denmark, | Thailand | ||||||||
Finland, | |||||||||
Norway, | |||||||||
Sweden) |
Poland
Russia
Spain
Switzerland
United Kingdom
and Ireland
In countries where Swatch Group has no actual distribution subsidiary, the company is represented by local distributors.
SWATCH GROUP / ANNUAL REPORT / 2024 ORGANIZATION AND DISTRIBUTION IN THE WORLD
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Board of Directors
as at December 31, 2024
Nayla Hayek
Chair of the Board of Directors
Company Secretary | Auditors | Administrative Headquarters | Registered Offices |
Jennifer Meyer-Kluge | PricewaterhouseCoopers | P.O. Box 1232 | Faubourg de l'Hôpital 3 |
St. Jakobs-Strasse 25 | Seevorstadt 6 | 2000 Neuchâtel | |
4052 Basel | 2501 Biel / Bienne | Switzerland | |
Switzerland | Switzerland | ||
Phone: +41 32 343 68 11 | |||
www.swatchgroup.com/contactus |
SWATCH GROUP / ANNUAL REPORT / 2024 ORGANS OF SWATCH GROUP
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Ernst Tanner | Daniela Aeschlimann | Nick Hayek |
Vice-Chairman
Prof. Dr. H.C. Claude Nicollier | Dr. Jean-Pierre Roth | Marc A. Hayek |
The function descriptions and responsibilities of the Board of Directors members at December 31, 2024 are outlined in the Corporate Governance chapter on pages 116 and 117 of the present Annual Report.
SWATCH GROUP / ANNUAL REPORT / 2024 ORGANS OF SWATCH GROUP
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Executive Group Management Board
as at December 31, 2024
Nick Hayek
President of the Group Management Board
Florence | Raynald Aeschlimann | Pierre-André Bühler | Damiano Casafina |
Ollivier-Lamarque |
Sylvain Dolla | Marc A. Hayek | Dr. Thierry Kenel | François Thiébaud |
SWATCH GROUP / ANNUAL REPORT / 2024 ORGANS OF SWATCH GROUP