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Notes to the consolidated financial statements continued32. Business combinationsBusiness operationsOn 11 August 2008, the Group acquired a 60 per cent controlling interest in Manufacture Roger Dubuis SA, a Geneva-based watchmaker.This together with other non-material manufacturing and retail businesses acquired during the year represent the total business combinations.The acquisition of Manufacture Roger Dubuis SA resulted in a residual goodwill amount of € 93 million. The goodwill relates to the additionalmanufacturing synergies to the Group. The goodwill is not tax deductible.Manufacture Roger Dubuis SA contributed revenues of € 8 million for the period from acquisition to 31 March 2009 and losses of € 18 millionfor the same period. If the acquisition had occurred on 1 April 2008, the annual contribution to sales would have been around € 12 million andlosses € 27 million. The other acquisitions have no material impact since acquisition, and this would not have changed had the acquisitionoccurred on 1 April 2008.Net assets acquired in the year ended 31 March 2009Business operations acquiredOther manufacturingWatch manufacturing and retail businesses TotalAcquirees Acquirees AcquireesFair carrying Fair carrying Fair carryingvalue amount value amount value amount€ m € m € m € m € m € mProperty, plant and equipment and other long-term assets 2 2 – – 2 2Intangible assets 54 – 3 – 57 –Inventories 23 28 2 2 25 30Trade and other receivables 4 4 – – 4 4Cash and cash equivalents (15) (15) – – (15) (15)Current and long-term liabilities (40) (57) (1) – (41) (57)Borrowings, current and deferred tax (34) 7 – – (34) 7Net assets acquired (6) (31) 4 2 (2) (29)Net assets acquired (6) 4 (2)Attributable to minority interests – – –Fair value of net assets acquired (6) 4 (2)Receivable due to parent 7 – 7Goodwill 93 – 93Purchase consideration – cash paid 94 4 98Overdraft acquired 15 – 15Cash outflow on acquisitions 109 4 113Cash paid to settle deferred consideration for combinations made in prior periods 13 – 13Cash outflow on acquisitions 122 4 126In the year ended 31 March 2008, the following business combinations were made:Business operationsDuring the year ended 31 March 2008, the Group made a number of acquisitions to enhance its manufacturing operations. In September 2007,Richemont acquired the component production facility of Manufacture Roger Dubuis SA and in November 100 per cent of the ordinary capitalof Donzé-Baume SA, a watch case manufacturer.The Group also acquired 100 per cent of the ordinary capital of the French fashion house, Azzedine Alaïa SAS.These together with other non-material manufacturing businesses acquired during the year represent the total business combination.The acquisition of Donzé-Baume SA resulted in a residual goodwill amount of € 32 million. The goodwill relates to the additional productioncapacity the Group has obtained by this acquisition and the fact that a significant external supplier was internalised. The goodwill is not tax deductible.As no individual acquisition is considered material, the financial information is presented on an aggregate basis for each of these categories.96 Richemont Annual Report and Accounts 2009Consolidated financial statements
32. Business combinations continuedBusiness operations (continued)These acquired businesses contributed revenues of € 28 million for the period from acquisition to 31 March 2008 and losses of € 7 millionfor the same period. If the acquisitions had occurred on 1 April 2007, the annual contribution to sales would have been around € 40 millionand losses € 1 million.The acquisition accounting for all the new entities has not been completed in respect of pensions. A material impact is not considered likely.Net assets acquired in the year ended 31 March 2008Business operations acquiredAcquireesFaircarryingvalueamount€ m € mProperty, plant and equipment 54 51Intangible assets 87 6Inventories 29 30Receivables 11 10Cash and cash equivalents 3 3Liabilities (11) (11)Borrowings (11) (18)Current and deferred tax (19) (1)Other long-term liabilities – (5)Net assets acquired 143 65Fair value of net assets acquired 143Goodwill 32Purchase consideration 175Deferred payments (27)Purchase consideration – cash paid 148Cash and cash equivalents acquired (3)Cash outflow on acquisition 14533. Related-party transactionsCompagnie Financière Rupert, Bellevue, Geneva holds 522 000 000 ‘B’ registered shares representing an interest in 50 per cent of the votingrights in Compagnie Financière Richemont SA. In addition, Compagnie Financière Rupert has advised that parties related to it held a totalof 162 664 Richemont ‘A’ bearer shares, or the equivalent thereof in the form of Depository Receipts, as at 31 March 2009, representing0.02 per cent of the voting rights of the Company.The Group has a number of transactions and relationships with related parties, as defined by IAS 24, Related Party Disclosures, all of whichare undertaken in the normal course of business.Besides Compagnie Financière Rupert, the Board of Directors of Compagnie Financière Richemont SA and the Group Management Committee(‘key management’), the Group has identified the following other related parties:• Richemont’s associated undertakings (see note 9);• Richemont’s joint venture interests (see note 35);• Reinet Investments S.C.A. (see note 1), a public company incorporated in Luxembourg;• Remgro Limited, a public company incorporated in South Africa;• VenFin Limited, a private company incorporated in South Africa; and• Richemont foundations (employee and others).Richemont Annual Report and Accounts 2009 97Consolidated 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
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Financial reviewRICHARD LEPEU, GROU
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Sales and operating results by busi
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Sales by distribution channelin €
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Summarised balance sheetin € mill
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Corporate responsibilityRichemont h
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Corporate governanceGENERAL PRINCIP
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on page 103. The operating expense
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Board of directors of Compagnie Fin
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Page 118 and 119: Notice of meetingThe Annual General
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