'A' share
The Richemont 'A' share is listed on the SWX Swiss Exchange. (For further information see
FAQs.) Until 20 October 2008, the 'A' shares in Compagnie Financière Richemont SA were indivisibly twinned with participation certificates issued by Richemont SA, Luxembourg. Refer to ‘A’ and ‘B’ units below for further details.
'A' and 'B' shares (to 20 October 2008 only)
In accordance with the articles of incorporation of the respective companies, the shares issued by the Company and the participation certificates issued by Richemont SA were twinned as follows: Each 'A' bearer share in the Company with a par value of CHF 1.00 was twinned with one bearer participation certificate in Richemont SA with no par value to form one 'A' unit, issued to bearer. Every ten 'B' registered shares in the Company with a par value of CHF 0.10 each were twinned with one registered participation certificate in Richemont SA with no par value to form one 'B' unit, issued in registered form.
As reported
The Group's financial results prepared in full compliance with IFRS, including the impact of non-recurring items.
Basic earnings per share
Basic earnings per share is calculated by reference to the weighted average number of shares outstanding during the period together with the net profit of the Group for the period. The number of shares outstanding takes into account the effects of the Group's buy-back programme.
Business segments
Richemont's five business segments group together those Maisons principally engaged in a specific business area, e.g. specialist watchmakers. As Richemont does not define its segments by product type, business segments include the sales and operating results of for each Maison's entire product range, e.g. within the jewellery maisons such as Cartier, sales incorporate: Jewellery, watches, leather goods, writing instruments and accessories.
Buy-back programme
The Group's programme to repurchase 'A' shares through the market in support of its stock option plan.
Call warrants
Contracts under which the holder has an actual or contingent right to buy a specified number of shares at a specified price on or by a specified future date.
Corporate costs
Corporate costs represent the costs of strategic management, marketing support and related central marketing initiatives as well as any central support services that cannot be directly allocated to business segments. Central support services include, for example, the IT, legal, intellectual property and finance functions of the Group.
Corporate governance
The term encompasses the full range of principles directed towards protecting shareholders' interests, seeking to ensure good management, a sound control environment with adequate checks and balances and transparency within the organisation.
Depository receipts and DRs
See
FAQs.
Financial year
The Group's financial year is from 1st April to 31st March.
Flagship boutique
A distinct boutique in a country or region, often with strong historical ties to the brand which it represents. The boutique projects the brand's image by carrying a wider product range than other boutiques and by hosting special events.
Fully diluted earnings per share
Fully diluted earnings per share is calculated by reference to the weighted average number of shares outstanding together with the net profit of the Group for the period. The weighted average number of shares outstanding is adjusted to assume conversion of all potential dilutive shares arising from outstanding stock options.
Goodwill
Where the consideration paid in respect of the Group's investment in subsidiary and associated undertakings is in excess of the fair value to the Group of the separable net assets acquired, the excess is regarded as goodwill. Goodwill arising from the acquisition of associated undertakings is capitalised within the cost of the investment.
IFRS
International Financial Reporting Standards, as issued by the International Accounting Standards Board. These include International Accounting Standards (IASs) and Interpretations.
Impairment charge
The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.
Maisons
Richemont's businesses or 'houses'. These businesses are vertically integrated, meaning they typically design, manufacture and distribute products under their own name, using the Group's shared services where appropriate.
Non-recurring items
Income or expenses that arise from events or transactions that are clearly distinct from the Group's ordinary activities and are therefore not expected to recur frequently or regularly.
Specialist watchmakers
Richemont owns seven Maisons which are first and foremost watchmakers, notwithstanding that they may also manufacture jewellery products (eg in the case of Piaget) or jewellery watches. The Group's watchmakers are A. Lange & Söhne, Baume & Mercier, IWC, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin. Other Maisons within the Group which have significant watch businesses but whose principal area of activity is in one of the other business segments are Cartier, Alfred Dunhill and Montblanc.
Stock option plan
The Group's long-term share-based compensation scheme whereby executives are awarded options to acquire shares at a predetermined price. Awards under the stock option plan typically vest over periods of three to seven years and have expiry dates, the date after which unexercised options lapse, of between 6 and 10 years from the date of grant.
Swiss GAAP
Swiss generally accepted accounting principles, as issued by the Foundation for Accounting and Reporting Recommendations in Switzerland.
Underlying results
The Group's financial results excluding the impact of non-recurring items. Underlying results are presented to give readers of the financial statements an indication of trends within its luxury and associate businesses. The underlying results are reconciled to IFRS results 'as reported'.