COMPAGNIE FINANCIERE RICHEMONT : 2024 Transcript of investor webcast Full Year

FY24 Annual Results

Friday 17 May 2024

Contents
INTRODUCTION	2
HIGHLIGHTS	2
SALES	3
BUSINESS AREAS	4
FINANCIALS	7
CONCLUSION	9
QUESTIONS AND ANSWERS	12

• Johann Rupert, Chairman
• Jérôme Lambert, Chief Executive Officer
• Burkhart Grund, Chief Finance Officer
• Cyrille Vigneron, Cartier Chief Executive Officer
• Nicolas Bos, Van Cleef & Arpels Chief Executive Officer
• Sophie Cagnard, Group Corporate Communications and Investor Relations Director

INTRODUCTION

Sophie Cagnard: Good morning and welcome to Richemont's 2024 full year results presentation. Thank you for coming to Geneva, and also to those of you watching the webcast. I am Sophie Cagnard and joining me today are Johann Rupert, Chairman, Jérôme Lambert, CEO, Burkhart Grund, CFO, Cyrille Vigneron, Cartier CEO and Nicolas Bos, Van Cleef & Arpels CEO.

As usual, the company announcement and financial presentation can be downloaded from richemont.com and the replay of the webcast will be available on our website today from 3:00pm Geneva time. Before we begin, please take note of the forward-looking statements in our ad hoc announcement and on slide two of our presentation. While you do, just a few personal words. As many of you know, I'll be retiring later this year and so, this will be my last results presentation. Over the last 22 years, it has been incredibly rewarding to build and lead the investor relations function, and interact with world-classsell-side analysts and highly knowledgeable investors. I would like to express my gratitude for your insightful questions and constructive feedback. I would also like to thank the Chairman for his trust and support, and all my many inspirational colleagues in the Richemont family. I am pleased to say that you will be in good hands moving forward with Alessandra Girolami, who will lead the department from September.

Turning now to the slides, Jérôme will take you through the year's financial highlights and sales, and then Burkhart will review our business areas, Group financials and key ESG initiatives. He will then hand back to Jérôme for the conclusion, which will be followed by a Q&A session open to participants present in the room. I will now hand over to Jérôme.

HIGHLIGHTS

Jérôme Lambert: Thank you, Sophie. Good morning, ladies and gentlemen. Thank you for joining us today. Throughout the year, we faced continued macroeconomic and geopolitical uncertainty, unfavourable foreign exchange movements and demanding comparatives.

Amid these challenges, we nonetheless achieved all-time high sales of 20.6 billion euros, an increase of 3% at actual exchange rates and 8% at constant exchange rates.

Operating profit came in at 4.8 billion euros. On a reported basis, operating profit was 5% lower than the prior year, resulting in an operating margin of 23.3%. The currency impact was quite significant: at constant exchange rates, operating profit increased by 13% and the resulting margin rose as well, as we shall see on the next slide. Excluding non-recurring charges of 58 million euros net, reported operating profit was close to 4.9 billion euros.

Profit for the year from continuing operations was solid at 3.8 billion euros, down 2% on the prior year. Cash flow from operating activities was strong, reaching 4.7 billion euros while the Group's net cash position continued to be robust with a 0.9 billion euro increase from the prior year to 7.4 billion euros.

Richemont delivered a solid underlying performance in a challenging context. Sales growth was fuelled by all regions, led by Asia Pacific in value terms and by Japan in percentage terms, as well as double-digit growth at Jewellery Maisons and in the retail channel. We saw a strong performance in

2

Q1 and Q3, and a 2% increase at constant exchange rates in the fourth quarter against a particularly challenging comparative of +21% in the prior-year period.

The full year operating profit from continuing operations of 4.8 billion euros was affected by significant foreign exchange movements. At 68.1%, our gross margin included a 200 basis point negative foreign exchange impact. At constant exchange rates, gross margin was up 130 basis points while operating margin increased by 100 basis points. At the business area level, the Jewellery Maisons maintained the highest operating margin, at 33.1% reported.

Over the year, Richemont strengthened its approach to ESG, with several milestones reached. The Group was proud to have obtained global gender EQUAL-SALARY certification from the EQUAL- SALARY Foundation, recognising Richemont's commitment to ensuring a fair and equal wage policy between women and men for our more than 38'000 colleagues across 39 markets.

SALES

Jérôme Lambert: Let me now walk you through the Group sales performance: first by region and then by distribution channel. Unless otherwise stated, all comments refer to year-on-year changes at constant exchange rates.

It is worth noting that sales grew across ALL regions, for the third year in a row. Also, in terms of individual markets, the US, benefitting from its strong growth rate over this past year, has now become the Group's largest contributor, just ahead of mainland China.

Europe delivered 3% growth on top of +27% in the prior year, mainly supported by local spending. This included increases in France, Switzerland, Italy and Spain, more than offsetting softness in some other locations. The fourth quarter was strong, with a 7% sales increase on a demanding comparative.

Turning to Asia Pacific, the region grew double digits for the year and contributed the most to the absolute increase in Group sales. Growth reflected the strength of Hong Kong and Macau, which benefitted from increased travel from the mainland Chinese. Most other key locations in the region showed growth for the year. Fourth quarter sales were down by 12%, primarily reflecting the particularly strong comparative of +26% in the prior year period.

The Americas posted a very solid performance with a 5% growth rate, benefitting from strong domestic demand sustained by a favourable macroeconomic environment and repatriation of spend. Fourth quarter sales growth accelerated to double digits. The Americas was the second largest region after Asia Pacific with sales of 4.5 billion euros.

Japan posted the strongest sales increase for the year, at +20%. This was primarily driven by tourist spending, notably from Chinese clients. Of note, fourth quarter sales in Japan saw extremely strong growth exceeding 40%, and this against a challenging comparative.

The Middle East & Africa region had a very robust performance, with sales up by double digits, benefitting from higher spending by both locals and tourists. This was particularly the case in the United Arab Emirates and Saudi Arabia. Fourth quarter sales also rose by double digits, continuing the strong growth momentum recorded during the year.

3

Let us now turn to sales by distribution channel, starting with retail - where directly-operated stores contributed 69% of Group sales, up from 68% in the prior year. The retail channel outperformed all other channels with an 11% sales increase, building on the double-digit growth rate of the prior year. This strong performance was driven by double-digit growth at both the Jewellery Maisons and Specialist Watchmakers, as well as mid-single digit growth at the Fashion & Accessories Maisons. All regions posted sales growth, with double-digit increases in Asia Pacific, Japan and Middle East & Africa. Retail sales benefitted from 81 net new store openings, mainly in Asia Pacific and the Americas. Fourth quarter retail sales increased by 2%, building upon a sharp 24% growth in the prior-year period.

The online retail channel - comprising the Group's online sales at the Group's Maisons and Watchfinder - contributed 6% of Group sales, in line with the prior year. Sales were 2% lower, as growth in most regions was more than offset by softer online sales in Europe and Asia Pacific. The F&A Maisons posted limited growth but included double-digit increases at Peter Millar and Alaïa. The reduction in online sales was partly due to the strong resurgence in 'brick-and-mortar' shopping as clients returned to physical stores. Sales in the fourth quarter were in line with the prior-year period.

Finally, wholesale sales. Comprising 25% of Group sales, wholesale sales increased by 4%, on a solid performance from the Jewellery Maisons, partially offset by softer sales at the other business areas. Fourth quarter sales rose by 2%, on demanding comparatives.

The Group's proportion of direct-to-client sales, which includes sales in our directly-operated stores and online, increased by one percentage point to 75% of Group sales. The increase was driven by the Specialist Watchmakers and Fashion & Accessories Maisons. Indeed, direct-to-client sales at the Specialist Watchmakers increased by four-percentage points to 60%. This follows a five-percentage point increase in the prior year, reflecting the success of the Group's ongoing retailisation strategy that complements the focus on key strategic multibrand retail partners. The Jewellery Maisons continued to have the highest rate of direct-to-client sales, at 82%.

Burkhart will now take you through the year's highlights by business area. Over to you Burkhart.

BUSINESS AREAS

Burkhart Grund: Thank you Jérôme. Let me review our business areas - with all numbers at actual rates - and starting with the Jewellery Maisons. Building upon very strong growth in the prior year, sales increased by 6%, exceeding a new sales threshold of 14 billion euros. At constant exchange rates, the 12% growth marks the third year in a row of double-digit growth for Jewellery Maisons.

Sales were up across all three Jewellery Maisons, most distribution channels and across all regions, most notably in Asia Pacific, Japan and Middle East & Africa.

In the fourth quarter, sales were slightly down, although up by 3% at constant exchange rates, on a challenging comparable base of +26% in the prior year.

The Jewellery Maisons' operating margin was strong, at 33.1%. All Maisons continued to make long term investments, particularly in jewellery production capacity and distribution. Communication

4

expenses also rose, notably for high jewellery events. The operating result rose by 1% compared to the prior year, largely affected by adverse foreign exchange movements. At constant exchange rates, the operating result was up 14%, with an 80 basis point increase in the operating margin.

Let us look at the key developments during the year. The Jewellery Maisons generated good growth with iconic collections. In jewellery, this included Trinity, which is celebrating its 100th anniversary this year, and Clash at Cartier, Alhambra and Fauna at Van Cleef & Arpels and Opera Tulle and Macri at Buccellati. Good watch performances included Panthère and Baignoire at Cartier and Perlée at Van Cleef & Arpels.

High jewellery enjoyed a strong performance, supported by international and local events around collection launches. These included Le Voyage Recommencé at Cartier, Le Grand Tour at Van Cleef & Arpels, and Mosaico at Buccellati.

The retail network was further upgraded with renovations and new openings across the regions. Renovations included the Milan Montenapoleone store for Buccellati, Geneva rue du Rhône for Van Cleef & Arpels and South Coast Plaza for Cartier. New openings took place in New York for Cartier, Hong Kong for Van Cleef & Arpels and Macau for Buccellati as well as in new markets such as e.g. Mumbai for Cartier. 64% of Cartier stores are now under its new concept, a material increase from 51% a year ago.

To support the strong demand for jewellery pieces across our three Jewellery Maisons, production capacity is being increased through production facilities being acquired, built or expanded. These facilities are located in Italy, France and Switzerland.

Let us now review our Specialist Watchmakers, where sales were 3% lower, following a strong comparative in the prior year. On a constant exchange rate basis though, sales grew by 2% against high-single digit growth in the prior year when they reached an all-time high.

Regionally, increases in Asia Pacific - excluding mainland China - Japan and the Middle East & Africa were supported by both local and tourist spending. Such increases were more than offset by declines in other regions. A mid-single digit increase in retail sales was more than offset by softness in other channels.

In the fourth quarter, following a double-digit comparative from the prior year, sales were 4% lower than the prior year on a reported basis and 1% lower at constant currencies.

The operating result of 572 million euros translated into a resilient operating margin of 15.2%. During the year, investments in communication and the store network continued to further reinforce the retailisation of the business. As in H1, the decline in profitability reflected a moderate sales contraction combined with a strong Swiss franc and internalisation of external points of sale.

Excluding forex movements, which impacted this business area the most, the operating result rose by 3% and the operating margin by 20 basis points.

Let's now look at some of the key developments over the past year. Performance was varied across the Maisons yet supported by a continued resilience of iconic collections. These included the Lange 1 at A. Lange & Söhne, Portugieser at IWC, Reverso at Jaeger-LeCoultre, Luminor at Panerai, Polo at Piaget, and Traditionnelle at Vacheron Constantin.

5

Our Specialist Watchmakers have continued to strengthen direct engagement with clients through the elevation of the experience in stores as well as through events highlighting craftsmanship and artistry such as Watches and Wonders, Concours d'élegance for A. Lange & Söhne and concerts for Jaeger-LeCoultre, to name just a few.

Further development of the retail network included new openings such as "Casa Panerai" in Paris, the first internal boutique in Thailand for Vacheron Constantin in Bangkok, and A. Lange & Söhne in Paris on rue de la Paix. Other highlights included the internalisation of external points of sale, relocations and renovations, the latter including the first Piaget boutique renovated under the new store concept, in Taipei 101 in Taiwan.

More on the evolution of the Specialist Watchmakers' business model at the end of the presentation, underlined by the DTC rate here on the slide.

Finally, let us move to the 'Other 'business area, which primarily includes the Group's Fashion & Accessories Maisons along with the Group's unbranded watch component manufacturing and real estate activities as well as Watchfinder. Sales were 2% lower year-on-year on a reported basis and 1% up at constant exchange rates. The resilience in the Americas, our largest region, mitigated softness elsewhere. Higher sales at most Fashion & Accessories Maisons were more than offset by lower performance in other units, predominantly Watchfinder. For the fourth quarter, sales were overall slightly down year-on-year, facing a strong comparable base in the prior year.

The operating result for the year was a 43 million euro loss. This largely reflects the impact of Watchfinder and our watch component manufacturers. The Fashion & Accessories Maisons broke even, yet at constant currencies, they generated a 30 million euro operating result.

Let us now look at some highlights of the past year. Most Fashion & Accessories Maisons experienced sales growth due to a heightened focus on creativity. FY24 was another successful year for Alaïa and Peter Millar. Alaïa had a strong reception of their latest collections and saw success of leather goods such as the Coeur handbag and Ballet Flat shoes. Montblanc enjoyed success with its higher price offer and large leather goods collection. Also noteworthy were the acclaimed first collections of Simon Holloway at dunhill and Chemena Kamali at Chloé. Indeed, Chemena's inaugural show was ranked #1 by WWD among the top 10 fashion shows in Milan, Paris and NYC.

The retail network was further enhanced with new openings across regions, including Delvaux in Kuala Lumpur's Pavilion Mall and in Beijing at Wang Fu Central, Alaïa at the Kingdom Centre in Riyadh and Peter Millar on Madison Avenue in New York.

The Group also strengthened its portfolio further with the acquisition of Gianvito Rossi, a recognised leader in high-end shoe manufacturing, with proprietary savoir-faire in development and production. We will now begin to scale up this unique Maison, leveraging the infrastructure and backing of the Group.

Watchfinder continued its expansion and is now present in four TimeVallée locations, including Abu Dhabi and Macau, while being present in over 100 Specialist Watchmakers and Cartier boutiques via its "Part Exchange Service". In addition, a marketplace offer was launched earlier this year in the United Kingdom.

6

FINANCIALS

Let me now turn to the Group financials, starting with gross profit which rose by 2%, to 14 billion euros. The gross margin declined by 60 basis points to 68.1%, impacted by a strong Swiss franc versus the Euro and higher raw material costs. Excluding the 190-basis point negative impact from adverse foreign exchange movements, gross margin increased by 130 basis, reflecting the positive impact of targeted price increases by our Maisons and a more favourable geographical mix.

Next, let us look at operating expenses, which were tightly controlled to end just 6% higher than the prior year, in an inflationary environment. At constant exchange rates, operating expenses rose by 9%, broadly in line with sales. I will now take you through the expenses by category.

Selling and distribution expenses increased by 7% at actual exchange rates and by 11% at constant exchange rates, accounting for 54% of total operating expenses, in line with the prior year. Most of the increase related to inflation-driven operating cost increases as well as to the development and enhancement of our retail network and growth in retail sales, notably in Asia Pacific, Japan and Middle East & Africa. Selling and distribution expenses represented 24.3% of Group sales, an 80 basis point increase compared to the prior year.

Communication expenses rose by 3% at actual exchange rates and by 6% at constant exchange rates. The higher spend was more marked at the Jewellery Maisons to support sales growth, notably with impactful high jewellery events. Nonetheless, investment in communications remained at 9.7% of Group sales, in line with the prior year and within our normalised 9-10% range.

Fulfilment expenses, which represent the costs of fulfilling online orders from our Maisons and Watchfinder, decreased by 5% at actual exchange rates and by 3% at constant exchange rates, and continued to represent 1% of Group sales.

Administrative expenses rose by 11% at actual and constant exchange rates and represented 9.2% of Group sales, 70 basis points higher than a year ago. The increase was primarily driven by salary increases, IT investments and our strong exposure to the Swiss franc.

Other expenses of 103 million euros were in line with the prior year and included non-recurring charges of 58 million euros net, primarily from a 34 million euro impairment of intangible assets and a 19 million euro impairment of goodwill at Watchfinder.

Excluding non-recurring charges of 58 million euros, operating expenses grew by 7%. Overall, net operating expenses as a percentage of Group sales increased from 43.5% a year ago to 44.8%.

At 4.8 billion euros, operating profit was robust, generating a 23.3% operating margin, 190 basis points lower than the prior year. The year-on-year change is mainly explained by the adverse foreign currency movements. At constant exchange rates, operating profit increased by 13%, with the resulting operating margin 100 basis points higher compared to the prior year. Note that operating profit came close to 4.9 billion euros when excluding the non-recurring charges of 58 million euros which were largely non-cash. Note also that we do not apply hedge accounting, hence the full impact of foreign exchange movements is reflected in our operating income.

7

Let us now review the rest of the P&L items below the operating profit line, starting with finance costs. Net finance costs improved by 136 million euros to 178 million euros. This improvement reflects three main items. Firstly, we recorded a 123 million euro increase in net foreign exchange gains on the Group's hedging programme. Secondly, we benefitted from a 62 million euro positive variance in net interest expense, primarily from higher interest income. This positive variance was partially offset by a 117 million euro fair value loss on financial instruments, which comprised a 269 million euro write-down of the Farfetch convertible note now valued at nil in our financial statements - as well as a 168 million euro gain in value on the Group's investments in externally managed bond funds and money market funds.

Moving now to discontinued operations, where sales were down by 14% over the prior year at actual rates and by 12% at constant exchange rates. The operating loss, at 1.4 billion euros, largely reflected a 1.3 billion euro non-cashwrite-down of the net assets held for sale to fair value, considering current levels of net working capital. I remind you that YNAP remains as held for sale in our financial statements.

Let us now turn to the profit for the year. Richemont reported a solid profit from continuing operations of 3.8 billion euros, down by 93 million euros. The increase in profit for the year to 2.4 billion euros reflected the reduced 1.5 billion loss from discontinued operations and the 136 million euro improvement in net finance costs just mentioned, partially offset by a lower operating profit. Our effective tax rate for the year for continuing operations was 18.1%, in line with the envisaged 18 to 21% range.

Cash flow generated from operating activities was up 5% to 4.7 billion euros. This increase was mainly due to a 326 million inflow from the settlement of currency forward contracts compared to a cash outflow in the prior year as well as a lower build-up of inventory.

Let us now turn to gross capital expenditure, which amounted to 1 billion euros. As a percentage of Group sales, capex reached 4.4% of sales, in line with a year ago.

45% of gross capital expenditure related to point-of-sale investments, including internal and franchise boutiques as well as external points of sale. Most of the spend was allocated to boutique renovations, upgrades and relocations, notably at Cartier.

Manufacturing accounted for the remaining 24% of gross capital expenditure and related primarily to R&D and increased jewellery capacity in Switzerland, France and Italy.

Finally, Other investments, which made up 31% of capex, mainly related to IT spend.

Let us now review free cash flow, which rose by 82 million to 2.9 billion euros. This increase was primarily driven by a 205 million euro increase in cash flow from operating activities, including the cash inflow from hedging derivatives mentioned earlier. It was partially offset by higher net capex and lease liability repayments.

Moving on to our balance sheet, which remains solid, with shareholders' equity accounting for 48% of the total. Net cash amounted to 7.4 billion euros on 31 March 2024, an increase of 0.9 billion euros over the prior year. This includes the benefit of the cash inflow of 880 million euros from the exercise of warrants issued in 2020, mitigated by a 2.1 billion euro dividend cash outflow.

8

The Board has proposed a dividend of 2.75 Swiss francs per 1 A share or 10 B shares, which represents a 10% increase of the ordinary dividend over the prior year, subject to shareholders' approval at the Annual General Meeting on 11 September 2024.

CONCLUSION

Burkhart Grund: I will now share an update on our ESG progress. This year, Richemont has taken the next step on its journey of continuous improvement to further consolidate the Group's approach to ESG. Building on the foundations put in place last year, in FY24 we completed the development of a Group-wide ESG Management System, establishing an overarching structure to integrate policies, processes and actions, providing the framework to execute the Group's ESG priorities. This management system has enabled all the activity across the Group to be combined into a consistent, harmonised approach across Maisons, regions and functions.

Our commitment to continuing to build ESG capabilities and increasing ESG professionalism has led to the creation of the Richemont Sustainability Online Academy. The goal of the Academy is to equip all our teams with the right tools and opportunities to grow their technical ESG understanding, in a consistent manner across the Group.

Continuing with our compliance-driven approach, this year our Non-Financial Report has been developed in accordance with GRI standards, with selected GRI indicators independently assured by PricewaterhouseCoopers. The report also complies with Art. 964a-c of the Swiss Code of Obligations. We continued to act on our environmental impact, and in 2023, Richemont was recognised by the Carbon Disclosure Project for its environmental performance, receiving an A- score for climate change.

We are also pleased to report that CO2e emissions from transportation and distribution reduced by 31% vs 2022. This is mainly the result of a shift from air freight to shipping by sea. Also, as part of the Group's ongoing efforts to advance its sustainable operations, Richemont continues to pursue internationally recognised building certifications. Today, 22% of the buildings owned by the Group are certified in accordance with the highest building standards.

In terms of driving social impact, Richemont obtained global gender EQUAL-SALARY certification from the EQUAL-SALARY Foundation. This recognises Richemont's commitment to ensuring a fair and equal wage policy between women and men for our more than 38 thousand colleagues across 39 markets.

In addition, this year, the Group's Human Rights statement was published, supported by a dedicated internal Human Rights Taskforce. The statement reflects the Group's longstanding commitment to respect the human rights of all people across the business and value chain, including employees, customers, partners and suppliers. It aligns with the United Nations Guiding Principles on Business and Human Rights, and the Principles of the United Nations Global Compact, to which Richemont is a signatory.

When it comes to preserving craftmanship, we are investing in the next generation of talent to ensure that we can support our business' sustainable long-term growth. Richemont owns and

9

partners with a number of leading schools in the fields of luxury design, jewellery making, fine watchmaking as well as luxury management courses.

We also invest in an extensive, global apprenticeship programme as part of our deep commitment to preserving special craftsmanship techniques. Back to you Jérôme.

Jérôme Lambert: Before closing, we wanted to bring the attention to our Specialist Watchmakers business area to take stock of the qualitative transformation that has taken place since the creation of the division at the end of calendar year 2017. The Specialist Watchmakers Maisons have evolved towards a sustainable business model based on client centricity and true demand. Many of the 8 Maisons have reached a new scale, and together have generated incremental sales of more than 1 billion euros since FY18, an absolute 39% sales increase.

The disciplined approach and execution of the strategy - nurturing the desirability of the brands, perpetuating and developing the 'savoir-faire' that goes into the crafted timepieces, - in careful lockstep with an evolution of the commercial and operational model, have progressively instilled resilience in the business area's economic model. As a result, the operating margin rose to 15.2% in FY24, up 550 basis points from 9.7% in FY18 while the euro depreciated from 1.14 to 0.96 versus the Swiss franc in the same period.

Let's dive deeper into the levers that our SWM Maisons have used to embed resilience in pursuit of sustainable growth and value generation:

First, by nurturing the brand equity and desirability of our Maisons with continuous investments in visibility while fostering the craftsmanship, creativity, invention, innovation and high watchmaking 'savoir-faire' that goes into developing the most exceptional timepieces. Strong and enduring demand for many collections, previously mentioned in the presentation, has led them to reach iconic status. The recent product launches at the 2024 edition of Watches & Wonders Geneva also showcased our Maisons' quest to push the boundaries in High Watchmaking. As an example, Vacheron Constantin unveiled the world's most complicated watch, Les Cabinotiers The Berkley Grand Complication, comprising 63 horological complications and 2'877 components.

Second, by accelerating direct engagement with our clients, notably through the development of directly operated stores in prime locations and alternative formats of distribution such as the Vacheron Constantin Suite 1755 in Dubai, alongside ensuring they provide the highest standards of client service. Our share of direct-to-client sales has thus reached 60% in FY24, up from 39% in FY18. If we include our externally-operated franchise stores, the total share of sales in a monobrand retail environment increases to 79%, up 27 percentage points compared to FY18, serving 2 out of 3 clients today in count.

We continue to pursue a disciplined approach to our network evolution with a strong focus on productivity and alignment with true demand. By establishing a network footprint and distribution ecosystem our Maisons are able to access full client potential and reach across markets. Our Maisons also rely strongly on our strategic retail partners to achieve these ambitions - whether in monobrand franchise stores or multi-brand stores, which also include the TimeVallée concept.

10