COMPAGNIE FINANCIERE RICHEMONT : 2024 Consolidated financial statements * Full Year

Consolidated Financial Statements

31 March 2024

Consolidated financial statements

Directors' Report

The Board of Directors of Compagnie Financière Richemont SA ('Richemont' or 'the Company') is pleased to submit its report on the activities of the Company, its subsidiaries and equity-accounted investments (together, 'the Group') for the year ended 31 March 2024. The consolidated financial statements on the following pages set out the financial position of the Group at 31 March 2024 and the results and cash flows of its operations for the year then ended. The financial statements of the Company are presented on pages 84 to 141.

Further information on the Group's activities during the year under review is given in the financial review on pages 35 to 41.

Consolidated financial statements

Consolidated balance sheet Consolidated income statement

Consolidated statement of comprehensive income Consolidated statement of changes in equity Consolidated statement of cash flows

Notes to the consolidated financial statements

1. General information
2. Summary of material accounting policies
3. Risk assessment
4. Critical accounting estimates and assumptions
5. Segment information
6. Property, plant and equipment
7. Goodwill
8. Other intangible assets
9. Leases
10. Equity-accountedinvestments
11. Taxation
12. Other non-current assets
13. Inventories
14. Trade receivables and other current assets
15. Derivative financial instruments
16. Assets and disposal group held for sale and discontinued operations
17. Cash and cash equivalents
18. Borrowings
19. Employee benefit obligations
20. Provisions
21. Other long-term liabilities

Page			Page
84	22.	Trade and other current liabilities	116
85	23.	Revenue	116
86	24.	Other operating (expense)/income	117
87	25.	Operating profit	117
88	26.	Employee benefits expense	118
89	27.	Finance costs and income	118
89	28.	Earnings per share	119
89	29.	Equity	120
90	30.	Dividends	122
90	31.	Share-based payments	123
91	32.	Cash flow from operating activities	125
94	33.	Liabilities arising from financing activities	126
96	34.	Financial instruments: fair values and risk
98		management	127
100	35.	Financial commitments and contingent liabilities	134
102	36.	Related party transactions	134
104	37.	Business combinations	136
107	38.	Ultimate controlling party	138
107	39.	Principal Group companies	139
108	40.	Events after the reporting date	141
109	Report of the statutory auditor	142
109	Company financial statements
110
111	Compagnie Financière Richemont SA	148
112
Report of the statutory auditor	154
115
116

Richemont Annual Report and Accounts 2024 83

Consolidated financial statements

Consolidated balance sheet

at 31 March

	Notes	2024	2023
	€m	€m
Assets
Non-current assets
Property, plant and equipment	6	3 637	3 343
Goodwill	7	759	610
Other intangible assets	8	680	497
Right of use assets	9	3 932	3 565
Investment property		32	34
Equity-accounted investments	10	656	599
Deferred income tax assets	11	888	752
Financial assets held at fair value through profit or loss	34	5	289
Financial assets held at fair value through other comprehensive income	34	284	301
Other non-current assets	12	576	529
		11 449	10 519
Current assets
Inventories	13	7 980	7 096
Trade receivables and other current assets	14	1 910	1 708
Derivative financial instruments	15	67	103
Financial assets held at fair value through profit or loss	34	8 784	7 401
Assets of disposal group held for sale	16	1 781	3 124
Cash at bank and on hand	17	10 710	10 936
		31 232	30 368
Total assets		42 681	40 887
Equity and liabilities
Equity attributable to owners of the parent company
Share capital	29	352	334
Share premium	29	1 162	-
Treasury shares	29	(461)	(305)
Other reserves	29	4 689	4 305
Retained earnings	29	14 779	14 625
		20 521	18 959
Non-controlling interests	39	114	60
Total equity		20 635	19 019
Liabilities
Non-current liabilities
Borrowings	18	5 972	5 954
Lease liabilities	9	3 615	3 239
Deferred income tax liabilities	11	265	129
Employee benefit obligations	19	62	65
Provisions	20	84	90
Other long-term financial liabilities	21	256	83
		10 254	9 560
Current liabilities
Trade payables and other current liabilities	22	2 964	2 960
Current income tax liabilities		923	861
Borrowings	18	7	1
Lease liabilities	9	673	644
Derivative financial instruments	15	107	7
Provisions	20	197	201
Liabilities of disposal group held for sale	16	856	1 801
Bank overdraft	17	6 065	5 833
		11 792	12 308
Total liabilities		22 046	21 868
Total equity and liabilities		42 681	40 887

84 Richemont Annual Report and Accounts 2024

Consolidated financial statements

Consolidated income statement

for the year ended 31 March

	Notes	2024	2023
	€m	€m
Revenue	23	20 616	19 953
Cost of sales		(6 580)	(6 237)
Gross profit		14 036	13 716
Selling and distribution expenses		(5 000)	(4 683)
Communication expenses		(2 006)	(1 940)
Fulfilment expenses		(244)	(257)
Administrative expenses		(1 889)	(1 702)
Other operating expenses	24	(103)	(103)
Operating profit		4 794	5 031
Finance costs	27	(787)	(597)
Finance income	27	609	283
Share of post-tax results of equity-accounted investments	10	39	41
Profit before taxation		4 655	4 758
Taxation	11	(837)	(847)
Profit for the year from continuing operations		3 818	3 911
Loss for the year from discontinued operations	16	(1 463)	(3 610)
Profit for the year		2 355	301

Profit attributable to:
Owners of the parent company	2 362
- continuing operations	3 817
- discontinued operations	(1 455)
Non-controlling interests	(7)
	2 355

Earnings per ʻAʼ share/10 ʻBʼ shares attributable to owners of the parent company during the year (expressed in € per share) From profit for the year

Basic	28	4.098
Diluted	28	4.077
From continuing operations
Basic	28	6.622
Diluted	28	6.588

313

3 909 (3 596)

(12)

301

0.550

0.543

6.870

6.778

Richemont Annual Report and Accounts 2024 85

Consolidated financial statements

Consolidated statement of comprehensive income

for the year ended 31 March

	Notes	2024	2023
	€m	€m
Profit for the year		2 355	301
Other comprehensive income:
Items that will never be reclassified to profit or loss
Defined benefit plan actuarial gains	19	(8)	9
Tax on defined benefit plan actuarial gains		-	(1)
Fair value changes on financial assets held at fair value through other comprehensive income	(23)	13
		(31)	21
Items that are or may be reclassified subsequently to profit or loss
Currency translation adjustments
- movement in the year		335	363
- reclassification to profit or loss		-	-
Cash flow hedging - reclassification to profit or loss		5	5
Tax on cash flow hedging reclassified to profit or loss		(1)	(1)
Share of other comprehensive income of equity-accounted investments	10	6	(21)
		345	346
Other comprehensive income, net of tax		314	367
Total comprehensive income		2 669	668

Total comprehensive income attributable to:
Owners of the parent company	2 678
- continuing operations	4 115
- discontinued operations	(1 437)
Non-controlling interests	(9)
	2 669

682

4 309 (3 627)

(14)

668

86 Richemont Annual Report and Accounts 2024

Consolidated financial statements

Consolidated statement of changes in equity

for the year ended 31 March

				Equity attributable to owners of the parent company
								Non-
		Share	Share	Treasury	Other	Retained		controlling	Total
	Notes	capital	premium	shares	reserves	earnings	Total	interests	equity
	€m	€m	€m	€m	€m	€m	€m	€m
Balance at 1 April 2022		334	-	(478)	3 876	16 082	19 814	49	19 863
Comprehensive income
Profit for the period		-	-	-	-	313	313	(12)	301
Other comprehensive loss		-	-	-	369	-	369	(2)	367
		-	-	-	369	313	682	(14)	668
Transactions with owners of the parent company recognised directly in equity
Net changes in treasury shares	29	-	-	173	-	25	198	-	198
Employee share-based compensation	31	-	-	-	96	-	96	-	96
Tax on share-based compensation	11	-	-	-	20	-	20	-	20
Reclassification to retained earnings	29	-	-	-	(56)	56	-	-	-
Changes in non-controlling interests		-	-	-	-	-	-	25	25
Dividends paid	30	-	-	-	-	(1 851)	(1 851)	-	(1 851)
		-	-	173	60	( 1 770)	(1 537)	25	(1 512)
Balance at 31 March 2023		334	-	(305)	4 305	14 625	18 959	60	19 019
Balance at 1 April 2023		334	-	(305)	4 305	14 625	18 959	60	19 019
Comprehensive income
Profit for the period		-	-	-	-	2 362	2 362	(7)	2 355
Other comprehensive income		-	-	-	341	(25)	316	(2)	314
		-	-	-	341	2 337	2 678	(9)	2 669
Transactions with owners of the parent company recognised directly in equity
Issue of share capital	29	18	1 162	-	-	-	1 180	-	1 180
Net changes in treasury shares	29	-	-	(156)	-	(16)	(172)	-	(172)
Employee share-based compensation	31	-	-	-	109	-	109	-	109
Tax on share-based compensation	11	-	-	-	(4)	-	( 4)	-	(4)
Reclassification to retained earnings	29	-	-	-	(62)	62	-	-	-
Changes in non-controlling interests	37	-	-	-	-	-	-	64	64
Initial recognition of put options over non-		-	-	-	-	(157)	(157)	-	(157)
controlling interests
Dividends paid	30	-	-	-	-	(2 072)	(2 072)	( 1)	(2 073)
		18	1 162	( 156)	43	( 2 183)	(1 116)	63	(1 053)
Balance at 31 March 2024		352	1 162	(461)	4 689	14 779	20 521	114	20 635

Richemont Annual Report and Accounts 2024 87

Consolidated financial statements

Consolidated statement of cash flows

for the year ended 31 March

	Notes	2024	2023
	€m	€m
Cash flows from operating activities
Operating profit from continuing operations		4 794	5 031
Operating loss from discontinued operations	16	(1 435)	(3 639)
Adjustment for non-cash items	32	2 859	5 092
Changes in working capital	32	(651)	(1 167)
Cash flow generated from operations		5 567	5 317
Interest received		413	210
Interest paid		(451)	(304)
Dividends from equity-accounted investments	10	1	2
Taxation paid		(834)	(734)
Net cash generated from operating activities		4 696	4 491
Cash flows from investing activities
Acquisition of subsidiary undertakings and other businesses, net of cash acquired	37	(306)	(49)
Proceeds from disposal of subsidiary undertakings, net of cash		-	1
Acquisition of equity-accounted investments	10	(11)	-
Contribution to equity-accounted investments	10	-	(330)
Acquisition of property, plant and equipment		(873)	(857)
Proceeds from disposal of property, plant and equipment		8	19
Payments capitalised as right of use assets		(11)	(3)
Acquisition of intangible assets		(137)	(124)
Investment in money market and externally managed funds		(18 718)	(15 239)
Proceeds from disposal of money market and externally managed funds		17 537	14 553
Acquisition of other non-current assets and investments		(68)	(57)
Proceeds from disposal of other non-current assets and investments		23	13
Net cash used in investing activities		(2 556)	(2 073)
Cash flows from financing activities
Issue of share capital		891	-
Costs of issue of share capital		(11)	-
Proceeds from borrowings	33	12	4
Repayment of borrowings	33	(6)	(6)
Dividends paid to owners of the parent entity		(2 072)	(1 851)
Dividends paid to non-controlling interests in a subsidiary		(1)	-
Acquisition of treasury shares		(54)	-
Proceeds from sale of treasury shares		181	198
Contribution from non-controlling interests in a subsidiary		-	25
Lease payments - principal		(762)	(688)
Net cash used in financing activities		(1 822)	(2 318)
Net change in cash and cash equivalents		318	100
Cash and cash equivalents at the beginning of the year		4 636	4 568
Exchange gains/(losses) on cash and cash equivalents		(48)	(32)
Cash and cash equivalents at the end of the year	17	4 906	4 636

88 Richemont Annual Report and Accounts 2024

Consolidated financial statements

Notes to the consolidated financial statements

at 31 March 2024

1. General information

Compagnie Financière Richemont SA ('the Company'), its subsidiaries and equity-accounted investments (together 'Richemont' or 'the Group') is one of the world's leading luxury goods groups. The Group's interests encompass several of the most prestigious names in the luxury industry including Cartier, Van Cleef & Arpels, Buccellati, A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis, Vacheron Constantin, Alaïa, Chloé, Delvaux, dunhill, Gianvito Rossi, Montblanc, Peter Millar, Purdey, Serapian, AZ Factory, Watchfinder and YOOX NET-A-PORTER ('YNAP').

The Company is incorporated in Switzerland and registered in Bellevue, Geneva, Switzerland. Shares of the Company are listed and traded on the SIX Swiss Exchange and are included in the Swiss Market Index ('SMI') of leading stocks. The Company's 'A' shares are also listed on the Johannesburg Stock Exchange as a secondary listing. Corporate bonds issued by a subsidiary of the Company are listed on the Luxembourg Stock Exchange.

These consolidated financial statements have been approved by the Board of Directors of the Company ('the Board') for issue on 16 May 2024 and are subject to approval at the shareholders' general meeting due to be held on 11 September 2024.

exists when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its powers over the entity. The accounts of subsidiary undertakings are drawn up at 31 March of each year. Uniform accounting policies have been adopted.

(b) Associates and joint ventures

Associated undertakings are defined as those undertakings, not classified as subsidiary undertakings, where the Group is able to exercise a significant influence. Significant influence is presumed to exist where the Group holds between 20% and 50% of the voting rights of another entity. Joint ventures are those arrangements where the Group has joint control and rights to the net assets of the arrangement.

2.4. Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the 'functional currency'). The functional currency of the Company is Swiss francs. The consolidated financial statements are presented in millions of euros (the 'presentation currency'). Management believes that this currency is more useful to the users of the consolidated financial statements.

2. Summary of material accounting policies

2.1. Basis of preparation

These consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards and IFRS Interpretations Committee interpretations (together 'IFRS').

These consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss or other comprehensive income.

Except as described in note 2.2 below, the policies set out in notes

1. to 2.8 have been consistently applied to the periods presented.

1. Adoption of new accounting standards

Other than the accounting standards mentioned below, no other amendments to IFRSs effective for the financial year ending 31 March 2024 have a material impact on the Group.

Amendment to IAS 12, International Tax Reform - Pillar Two Model Rules

The Group has adopted the amendment to IAS 12, which introduces a temporary exception from accounting for deferred taxes arising from the Pillar Two Model rules. As a result, the Group does not recognise deferred tax assets and liabilities related to Pillar Two income taxes. Further details can be found in note 11.

2.3. Basis of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiary undertakings together with the Group's share of the results and net assets of equity-accounted investments.

(a) Subsidiary undertaking

Subsidiary undertakings are defined as those undertakings that are controlled by the Group and are consolidated from the date control commences until the date control ceases. Control of an undertaking

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates on the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

(c) Group companies

The assets and liabilities of foreign operations that have a functional currency different from the presentation currency are translated to euro at the closing exchange rates at the reporting date.

The income, expenses and cash flows of foreign operations are translated to euro at the average exchange rates prevailing during the period. The average rates approximate actual rates at the transaction dates.

All resulting foreign exchange differences are recognised in other comprehensive income.

When a foreign operation is sold, such exchange differences are recognised in profit or loss as part of the gain or loss on disposal.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated at the closing rate.

2.5. Impairment of non-financial assets

All non-financial assets are tested for impairment whenever events or changes in circumstance indicate that the carrying amount may not be fully recoverable, with the exception of intangible assets that have an indefinite useful life which are not subject to amortisation and so are tested annually for impairment. The Group has identified goodwill as the only category of intangible asset with an indefinite life.

Richemont Annual Report and Accounts 2024 89

Consolidated financial statements

Notes to the consolidated financial statements

2.5. Impairment of non-financial assets continued

Assets which do not generate cash flows independently of other assets are allocated to a cash-generating unit ('CGU') for impairment testing. The CGUs are made up of assets grouped at the lowest levels for which there are separately identifiable cash flows, subject to an operating segment ceiling. An impairment loss is recognised, if necessary, for the amount by which a CGU's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of a CGU's fair value, less costs of disposal, and its value-in-use.

2.6. Discontinued operations

On 23 August 2022, the Group announced that it had reached an agreement with Farfetch Limited ('Farfetch') and Symphony Global ('Alabbar') to sell its controlling shareholding in YNAP. In accordance with IFRS 5, the assets and liabilities of YNAP were reclassified as held for sale and its results for the year were presented as discontinued operations.

In December 2023, the Group announced that the transaction could not be completed. Following the termination of the agreement with Farfetch and Alabbar, the Group launched a strategic review to identify a new buyer for YNAP. As a result, the Group has concluded that the conditions in IFRS 5 continue to be met, and so the assets and liabilities of YNAP remain classified as held for sale, with its results for the year presented as discontinued operations.

Further details can be found in note 16.

2.7. Hyperinflationary economies

With effect from 1 June 2022, Türkiye is considered to be hyperinflationary. There is no significant impact on the consolidated financial statements of the Group as a result.

2.8. Other accounting policies

Details of the other accounting policies adopted by the Group can be found in the note to the consolidated financial statements to which they relate.

2.9. Climate-related risks

At the date of this report, the impact on the financial statements resulting from climate-related risks is not significant. During the year under review, Richemont continued to build and strengthen its ESG Management System. An ESG Risk and Opportunities (ESG ROA) assessment was conducted in 2024 with the aim to identify, prioritise and contextualise ESG-related risks and opportunities, including on climate, emissions and energy. Prioritised risks and opportunities undergo a detailed analysis to contextualise their impact, underlying drivers, current mitigation efforts and potential action plans. This stage leverages both internal and external data sources to enrich understanding and ensure the accuracy and relevance of the assessments. For climate-related risks, the process foresees a scenario analysis, which evaluates potential impacts based on predefined global warming scenarios.

The costs associated with specific initiatives undertaken during the year are included with Cost of sales and the various expense line items within Operating Profit, as appropriate. Cash flow forecasts used for impairment testing take into account any known impacts rising from climate-related risks. The Group will continue to closely monitor developments in this area, and the financial impact thereof.

90 Richemont Annual Report and Accounts 2024

Consolidated financial statements

2.10. New standards and interpretations not yet adopted

Certain new accounting standards and amendments issued by the IASB and interpretations issued by the IFRS Interpretations Committee at 31 March 2024 are not yet effective and have not been applied in preparing these consolidated financial statements. Other than as disclosed below, none are expected to have a significant impact on the Group's consolidated financial statements.

IFRS 18 Presentation and disclosure in financial statements is applicable for reporting periods beginning on or after 1 January 2027 and introduces new requirements for presentation and disclosure in the financial statements. The impact on the Group's consolidated financial statements has yet to be assessed.

3. Risk assessment

The Company has a risk management process which considers both strategic and operational risks. All identified risks are modelled according to their probability of occurrence and potential impact and subsequently prioritised by Group management. A consolidated risk report, which includes risk mitigation plans prepared by the Group executive directly responsible for addressing the risk, is reviewed annually by the Audit Committee and the Board of Directors.

For any risks identified which relate to accounting and financial reporting, and to reduce the risk to the financial statements arising from material misstatement, whether due to fraud or error, the Group's internal control system framework defines relevant control measures which are implemented across the Group and appropriately monitored.

4. Critical accounting estimates and assumptions

The Group is required to make estimates and assumptions that affect the reported amount of certain asset, liability, income and expense items and certain disclosures regarding contingencies, and to make judgments in the process of applying its accounting policies. Estimates and assumptions applied by management are continuously evaluated and are based on information available, historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances at the dates of preparation of the consolidated financial statements. Principal matters involving significant estimates, assumptions or judgments relate in particular to:

(a) Inventories

The Group records a provision against its inventories for damaged and slower-moving items. This provision is based on estimates made by management taking into consideration various factors including historical experience, estimated future demand, discontinuations and product development.

The provision is assessed at each reporting date by the respective Maison or subsidiary company and is adjusted accordingly. Details of the movements in the provision are provided in note 13.