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

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Notes to the consolidated financial statements continued12. Other non-current assets2009 2008€ m € mMaisons’ collections 97 90Lease deposits 58 58Loans and receivables 8 10Other assets 17 16180 174The carrying value of lease deposits, loans and receivables approximate their fair values. There are no overdue or impaired amounts includedin deposits, loans and receivables.13. Inventories2009 2008€ m € mRaw materials and work in progress 819 803Finished goods 1 603 1 2732 422 2 076The cost of inventories recognised as an expense and included in cost of sales amounted to € 1 763 million (2008: € 1 713 million).The Group reversed € 68 million (2008: € 24 million) of a previous inventory write-down during the year as the goods were sold at anamount in excess of the written down value. The amount reversed has been credited to cost of sales.The Group recognised € 124 million (2008: € 75 million) in the write-down of inventory as a charge to cost of sales.14. Trade and other receivables2009 2008€ m € mTrade receivables 543 519Less: provision for impairment (26) (19)Trade receivables – net 517 500Loans and receivables 119 109Other receivables 36 32672 641Trade and other receivables are valued based on expected cash flows which are not discounted as they are expected to occur within the nexttwelve months.There is no concentration of credit risk with respect to trade receivables as the Group has a large number of internationally-dispersed customers.In addition to the amounts above there are non-current assets amounting to € 66 million (2008: € 68 million) and cash balances as disclosed innote 16 which are considered to be loans and receivables.The maximum exposure to credit risk for trade receivables by geographic region was:2009 2008€ m € mEurope 308 290France 83 83Switzerland 59 53Germany, Italy and Spain 105 106Other Europe 61 48Asia 130 120China/Hong Kong 57 43Japan 52 57Other Asia 21 20Americas 79 90USA 66 78Other Americas 13 12517 50080 Richemont Annual Report and Accounts 2009Consolidated financial statements
14. Trade and other receivables continuedThe maximum exposure to credit risk for trade receivables by type of customer was:2009 2008€ m € mWholesale customers 446 435Retail customers 71 65517 500The Group’s most significant wholesale customer in China accounts for € 10 million of the total trade receivables carrying amount atMarch 2009 (2008: € 8 million for a European wholesaler).Impairment lossesImpairment losses are recognised for all known bad debts and are provided on a specific basis.The movement in the provision for impairment of trade and other receivables was as follows:2009 2008€ m € mBalance at 1 April of prior year (19) (15)Exchange adjustments (1) 1Acquisition through business combinations (1) –Provision charged to income statement (11) (14)Utilisation of provision 3 1Reversal of unutilised provision 3 8Balance at 31 March (26) (19)At 31 March 2009, trade receivables of € 34 million (2008: € 31 million) were impaired.Receivables past due but not impaired:2009 2008€ m € mUp to three months past due 146 116Three to six months past due 35 21Over six months past due 13 10194 147Based on past experience, the Group does not impair receivables that are not past due unless they are known to be bad debts. The Grouphas established credit check procedures that ensure the high creditworthiness of its customers.Due to their short maturity, the fair values of trade and other receivables approximate to their book values.The majority of trade receivables are denominated in the functional currency of the selling entity. Where this is not the case, forward currencycontracts are usually entered into, covering the receivable from inception to maturity.15. Derivative financial instrumentsThe Group uses the following derivative instruments:(a) Currency forwards: representing commitments to purchase or sell foreign and domestic currencies.(b) Foreign currency options: contractual agreements under which the seller (writer) grants the purchaser (holder) the right, but not theobligation, either to buy (a call option) or sell (a put option), at or by a set date or during a set period, a specific amount of a foreigncurrency or financial instrument at a pre-determined price.(c)Accrual style option forwards: forward instruments that incorporate similar option terms as described above and that may give the rightto increase the nominal value.(d) Interest rate swaps: commitments to exchange one set of cash flows for another. Swaps result in an economic exchange of interest rates(for example, fixed for floating). No exchange of principal takes place. The Group’s credit risk represents the potential cost of replacingthe swap contracts if counterparties fail to perform their obligation.Richemont Annual Report and Accounts 2009 81Consolidated financial statements
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Financial and operating highlights
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BUSINESS DEVELOPMENTWhilst the year
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JewelleryMaisonsKey resultsSales (
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Exceptional client service remains
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SpecialistWatchmakersKey resultsSal
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Established 1845Altenberger Strasse
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Established 1860Piazza San Giovanni
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Established 183050 chemin de la Ch
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Established 20078 chemin de Blandon
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Established 1906Hellgrundweg 100Ham
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OtherBusinessesKey resultsSales (
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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
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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
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