Richemont reverse pitch

Group created in 1988. 53 B CHF of Market cap. 11 B€ sales and 1.8 B€ operating profit.

Many "maisons" : Cartier, Chloé, ... 3 types : Jewellery Maisons (Cartier, ...), Specialist Watchmakers (Jaegger Lecoultre, Piaget, ...), Other businesses (Chloé, Purdey, Mont Blanc, ...)

3x sales in between 2000 and 2018. 2 crisis : financial crisis + law regulation in China

17% operating margin. 5.3 B€ net cash position.

Last year did a lot of buy back on the market. Buy back many stocks to be less diluted (from the wholesales partners) ⇒ reduced operating profit.

Asia Pacific is biggest region (China 12% - Japan 9%). Europe 27%. Americas 16%. Middle East 8%.

Who is purchasing ? ⇒ Chinese customers.

Product lines : 41% jewellery and 40% jewellery.

29k employees.

Brands operate autonomously but not independently.

Each maison has its own teams (Chloe, Elaia, part of Cartier and part of Van Cleef have their central teams in Paris).

HQ of Richemont dictates the global policy. ⇒ Regional distributions and central support services (for logistics)

Retail network 60% and 40% wholesales. E-commerce is very small. 1835 boutiques (1123 internal boutiques)

300k transacted products per day. 120000m2 of warehouse. 40 logistics centres ⇒ 1k people.

Manufacture vs Production :

Manufacture is low volume, craft made, highly complex.

Production is high volume and output driven. Focus on speed and produced for industry. (Mont Blanc is closer to production) ⇒ they all use the 6-sigma processes.

Boutiques vs stores.

Innovation at Richemont : looking first on product excellence. and then new processes, and new territories.

Startup and us : partners. Identify the key questions.

Philippe Meyer : main point of contact.

Immediate areas : image recognition, bots (increase productivity of staff), alternatives to leather, recycling & last mile & proximity services.

Try to be here on wednesday.

Do not have a huge track record of working with startups. ⇒ A pain to connect with IT systems.