Richemont is one of the world's leading luxury - Alle jaarverslagen

More documents

Recommendations

Info

Notes to the consolidated financial statements continued34. Share-based payment continuedThe following information applies to options outstanding at the end of each year:WeightedExercise Weighted average Number of average remainingPrice exercise price options contractual life31 March 2009 CHF 8.73-10.59 CHF 9.86 6 004 278 1.9 yearsCHF 12.70-14.45 CHF 13.65 10 302 997 4.3 yearsCHF 18.01 CHF 18.01 8 987 014 5.2 yearsCHF 23.18 CHF 23.18 7 228 975 6.2 yearsCHF 32.79 CHF 32.79 5 255 458 7.2 yearsCHF 21.20 CHF 21.20 5 028 702 8.2 years31 March 2008 CHF 20.00-24.25 CHF 22.50 6 563 849 2.9 yearsCHF 29.10-33.10 CHF 31.51 6 981 768 5.3 yearsCHF 41.25 CHF 41.25 4 031 600 6.2 yearsCHF 53.10 CHF 53.10 3 248 500 7.2 yearsCHF 75.10 CHF 75.10 2 353 900 8.2 yearsThe average fair value of options granted during the period determined using a Monte Carlo model was CHF 8.48 (2008: Black Scholes model;value CHF 27.38). The significant inputs into the model were the share price of CHF 21.20 (2008: CHF 73.40) at the grant date, the exerciseprices shown above, a standard deviation of expected share price returns of 41 per cent (2008: 34.0 and 33.0 per cent), an expected option lifeof seven to nine years, a dividend yield of 2.00 per cent (2008: 1.46 per cent) and a risk-free interest rate of 1.3 per cent to 1.7 per cent (2008:3.0 per cent to 3.1 per cent). The volatility measured at the standard deviation of expected share price returns is based on statistical analysis ofdaily share prices over the last six years.The amount recognised in the income statement before social security and taxes for equity-settled share-based payment transactions was€ 31 million (2008: € 31 million).Modification during the year under reviewOn 20 October 2008, the Company split its luxury goods businesses from its other interests resulting in the de-twinning of the then existingRichemont units. The de-twinning process impacted the value and the number of stock options awarded to executives. Richemont unit options,which had vested but were not yet exercised at the date of the restructuring, have been converted into options over Richemont ‘A’ shares,options over BAT shares and options over Reinet shares. The exchange ratio used, determined at market prices at close of business on thedate of the de-twinning, was calculated to preserve the economic benefits of the Richemont option holders. Richemont unit options whichhad not vested at the date of the restructuring were converted in their entirety into options over Richemont ‘A’ shares.The fair value of the outstanding options immediately before and after the modification was recalculated using the binomial model. The significantinputs into the model were the risk-free interest rates set as at the date of the modification, the dividend yield based on historical values ignoringany special dividends (a zero dividend yield and an estimated share price were used for Reinet), an expected option life between zero and sevenyears and an early exercise assumption based on expected rational behaviour, and the seniority of the management and the relative values of theBAT share price (£ 17.14) and the Richemont unit price (CHF 42.90) at the date of modification. The volatility for BAT was based on a historicsix-year average. The historic volatility and estimated price of the new Richemont share was determined by decomposing the Richemont unitprice into the component parts of the luxury goods businesses, and BAT and other assets. The volatility of Reinet was based on nine comparativelisted companies.Expected Expected Risk-freevolatility dividends interest rateRichemont (unit) 31% 2.8% 1.1% – 3.3%Richemont (share) 41% 6.4% 1.1% – 3.3%BAT 20% 4.1% 3.0% – 4.2%Reinet 40% – 2.7% – 3.9%As a consequence of the restructuring, the incremental fair value granted amounts to € 5.8 million. The increase in fair value related to vestedoptions amounts to € 0.4 million and has been fully recognised in the year. The increase in fair value related to unvested options of € 5.4 millionwill be recognised over the period from 20 October 2008 until the vesting dates which remain unchanged after the de-twinning process.104 Richemont Annual Report and Accounts 2009Consolidated financial statements
35. Joint venturesThe Group has the following interests in joint ventures:• Richemont holds an interest of 50 per cent in Laureus World Sports Awards Limited, a company registered in the UK. The company managesthe Laureus World Sports Awards, which honour the achievements of the world’s greatest sportsmen and women on an annual basis andcontributes to the Laureus Sport for Good Foundation, a charity registered in the UK which oversees the activities of Laureus Sport for GoodFoundations around the world. The Group’s partner in Laureus World Sports Awards Limited is Daimler AG.• Richemont is a 50 per cent owner of Ralph Lauren Watch and Jewelry Company Sàrl. The joint venture entity designs and creates luxurywatches and fine jewellery. The Group’s partner is Polo Ralph Lauren Inc., New York.• Until 20 October 2008, Richemont held a 19.5 per cent interest in BAT through the joint venture R&R Holdings SA incorporated in Luxembourg.As part of the Group restructuring, the assets of R&R Holdings SA, being namely the BAT shares, were transferred to Reinet and R&RHoldings SA was liquidated.The following amounts represent the Group’s share of the assets and liabilities and results of the joint ventures and are included in theconsolidated balance sheet and income statement. The figures are before elimination of intra-Group transactions and balances.2009 2008€ m € mBalance sheetInvestments in associated undertaking – 2 998Non-current assets 1 –Current assets 12 7Current liabilities (14) (1 362)Non-current liabilities (3) (1)(4) 1 642Income statementContinuing operations2009 2008€ m € mRevenue 3 –Operating loss (2) (4)Finance income 4 4Taxation – (1)Profit/(loss) from continuing operations 2 (1)Profit from discontinued operations (net of tax) 355 609Net profit 357 60836. Ultimate parent companyThe directors regard Compagnie Financière Rupert, Bellevue, Geneva, Switzerland to be the Group’s controlling party, as 50 per cent of thevoting rights of the Company are held by that entity.37. Post balance sheet eventsA dividend of CHF 0.30 per share is proposed for approval at the Annual General Meeting of the Company, to be held on 9 September 2009.These financial statements do not reflect these dividends payable, which will be accounted for as an appropriation of retained earnings to beeffected during the year ending 31 March 2010.Richemont Annual Report and Accounts 2009 105Consolidated financial statements
Page 3 and 4:
Financial and operating highlights
Page 5 and 6:
BUSINESS DEVELOPMENTWhilst the year
Page 8 and 9:
JewelleryMaisonsKey resultsSales (
Page 10 and 11:
Exceptional client service remains
Page 12 and 13:
SpecialistWatchmakersKey resultsSal
Page 14 and 15:
Established 1845Altenberger Strasse
Page 17 and 18:
Established 1860Piazza San Giovanni
Page 19 and 20:
Established 183050 chemin de la Ch
Page 21 and 22:
Established 20078 chemin de Blandon
Page 23 and 24:
Established 1906Hellgrundweg 100Ham
Page 27 and 28:
OtherBusinessesKey resultsSales (
Page 29 and 30:
Established 19837 rue de MoussyPari
Page 32 and 33:
Financial reviewRICHARD LEPEU, GROU
Page 34 and 35:
Sales and operating results by busi
Page 36 and 37:
Sales by distribution channelin €
Page 38 and 39:
Summarised balance sheetin € mill
Page 40 and 41:
Corporate responsibilityRichemont h
Page 42 and 43:
Corporate governanceGENERAL PRINCIP
Page 44 and 45:
on page 103. The operating expense
Page 46 and 47:
Board of directors of Compagnie Fin
Page 48 and 49:
Board of directors of Compagnie Fin
Page 50 and 51:
Group Management CommitteeJohann Ru
Page 52 and 53:
Continued from page 47The executive
Page 54 and 55:
Salary and other short-term benefit
Page 56 and 57: No specific provisions exist in the
Page 58 and 59: Consolidated balance sheetat 31 Mar
Page 60 and 61: Consolidated statement of changes i
Page 62 and 63: Notes to the consolidated financial
Page 110 and 111: Company financial statementsCompagn
Page 112 and 113: Compagnie Financière Richemont SAN
Page 114 and 115: Compagnie Financière Richemont SAR
Page 116 and 117: Five year record continuedConsolida
Page 118 and 119: Notice of meetingThe Annual General
Page 120: www.richemont.com
show all

Richemont is one of the world's leading luxury - Alle jaarverslagen

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?