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Richemont, the Swiss luxury goods group, announces its unaudited



COMPANY ANNOUNCEMENT

9 November 2012

Richemont, the Swiss luxury goods group, announces its unaudited consolidated
results

for the six month period ended 30 September 2012

Financial highlights

  * Sales grew by 21 % to EUR 5 106 million, or by 12 % at constant exchange
    rates
  * Solid growth across segments, regions and channels
  * Operating profit increased by 28 % to EUR 1 380 million, benefitting from
    favourable currency movements
  * Operating margin gained 150 basis points to reach 27 %
  * Profit for the period rose by 52 % to EUR 1 081 million
  * Cashflow from operations of EUR 575 million

Key financial data (unaudited)     6 months ended 30 September
                                   2012        2011        Change
Sales                              EUR 5 106 m EUR 4 214 m + 21 %
Gross profit                       EUR 3 310 m EUR 2 665 m + 24 %
Gross margin                       64.8 %      63.2 %      + 160 bps
Operating profit                   EUR 1 380 m EUR 1 075 m + 28 %
Operating margin                   27.0 %      25.5 %      + 150 bps
Profit for the period              EUR 1 081 m EUR 709 m   + 52 %
Earnings per share, diluted basis  EUR 1.947   EUR 1.266   + 54 %
Cashflow generated from operations EUR 575 m   EUR 606 m   - EUR 31 m
Net cash position                  EUR 3 048 m EUR 2 596 m + EUR 452 m

This document contains forward-looking statements as that term is defined in
the United States Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are not guarantees of future performance. Actual
results may differ materially from the forward-looking statements as a result
of a number of risk and uncertainties, many of which are outside the Group's
control. Richemont does not undertake to update, nor does it have any
obligation to provide updates of, or to revise, any forward-looking
statements.

Executive Chairman and Chief Executive Officer's commentary

Richemont is reporting a solid set of results for the first half of this year.
The Group's Maisons benefitted from favourable exchange rates effects,
successful product launches as well as strong pricing power.

The increase in net profit was well above the prior period, reflecting both
the growth in operating results and the non-recurrence of non-cash losses,
which stemmed from the Swiss franc's appreciation against the euro based on
the closing Swiss franc rate.

Richemont's financial position continues to be strong: the Group's net cash
position is EUR 3 billion.

Sales growth rates moderated, as evidenced by the October sales which grew by
12 % at actual exchange rates. At constant exchange rates, they were 7 %
higher. Richemont is seeing good growth in Europe, supported by Asian tourism
which is compensating for slower domestic Asia Pacific sales. Retail continued
to lead wholesale, reflecting robust jewellery sales.

For the second half of the year, the comparatives are likely to be impacted by
less favourable exchange rates.

With a view to strengthening the manufacturing base and exploiting growth
opportunities as they arise, the Group's Maisons will execute their investment
programmes as planned.

Johann Rupert, Executive Chairman and Chief Executive Officer

Compagnie Financière Richemont SA

Geneva, 9 November 2012

***

Financial Review

Sales

Sales in the six-month period increased by 21 % at actual exchange rates, or
by 12 % at constant exchange rates. The increase in sales reflected, in
particular, sales growth in the Group's own retail network, bolstered by very
strong demand in Europe during the period. Further details of sales by region,
distribution channel and business area are given in the Review of Operations
on pages 5 to 8.

Gross profit

Gross profit rose by 24 % and the gross margin percentage was 160 basis points
higher at 64.8 % of sales. Several factors caused the increase in the gross
margin percentage, in particular favourable currency movements. Other
favourable factors included the impact of price increases and the growing
proportion of sales made through the Maisons' own boutiques. These favourable
factors were partly offset by the impact of the cessation of hedge accounting,
which was initiated in the prior year. In the current period, foreign exchange
losses recognised in the gross margin were immaterial whereas gains in the
prior period added 166 basis points to the gross margin percentage.

Operating profit

Operating profit increased by 28 %, reflecting the significant increase in
gross profit, offset by an increase in operating expenses of 21 %, or 14 % at
constant exchange rates.

Selling and distribution expenses were 23 % higher, reflecting in particular
the increase in sales in the Maisons' own boutique networks. Communication
expenses also increased by 23 % and represented 8 % of sales. Administration
costs rose by 19 % and reflected the expansion of certain of the Group's
shared service platforms.

As a consequence, operating margin increased by 150 basis points to 27.0 % in
the period under review.

Profit for the period

Profit for the period increased by 52 % to EUR 1 081 million, reflecting the
following significant items:

  * Within net finance costs, EUR 142 million of mark-to-market losses have
    been recorded in respect of currency hedging activities (2011: losses of
    EUR 113 million).
  * In the comparative period, the Swiss franc's appreciation against the euro
    generated reported non-cash losses of EUR 153 million in respect of the
    Group's cash position. In the period under review, there were no such
    non-cash losses as a consequence of the stable euro: Swiss franc exchange
    rate.

The effective taxation rate was 15.6 %, reflecting the anticipated full-year
rate, which is in line with prior periods.

Earnings per share increased by 54 % to EUR 1.947 on a diluted basis. To
comply with the South African practice of providing headline earnings per
share ('HEPS') data, the relevant figure for headline earnings for the period
ended 30 September 2012 would be EUR 1 087 million (2011: EUR 713 million).
Basic HEPS for the period was EUR 1.983 (2011: EUR 1.303). Diluted HEPS for
the period was EUR 1.949 (2011: EUR 1.273). Further details regarding earnings
per share and HEPS, including an itemised reconciliation, may be found in note
8 of the Group's condensed consolidated interim financial statements.

Cashflow

Cashflow generated from operations was EUR 575 million, broadly in line with
the prior period. The additional cash generated from operating profit was
absorbed by working capital movements and settlement of maturing foreign
exchange contracts.

The net acquisition of tangible fixed assets amounted to EUR 217 million,
reflecting selected investments in the Group's network of boutiques,
particularly in the Asia Pacific region, and further investments in
manufacturing facilities in Switzerland.

The 2012 dividend, at CHF 0.55 per share, was paid to shareholders net of
withholding tax in September. The cash outflow in the period amounted to EUR
164 million; the withholding tax was remitted to the Swiss authorities in
October.

During the period, the Group acquired some 6 million 'A' shares to hedge
executive stock options. The cost of these purchases was partly offset by
proceeds from the exercise of stock options by executives and other activities
linked to the hedging programme, leading to a net outflow of EUR 86 million.

Financial structure and balance sheet

Inventories at the end of September amounted to EUR 4 033 million. This figure
represents 16 months of gross inventories and is in line with the rotation at
September 2011. The stable rate of stock turn reflects the favourable trading
conditions in particular. In absolute terms, the increase in the value of
inventories resulted from the strategic build-up of inventories and the
expansion of the Maisons' boutique networks.

At 30 September 2012, the Group's net cash position amounted to EUR 3 048
million, broadly in line with the position at 31 March 2012. The Group's net
cash position includes short-term liquid funds as well as cash, cash
equivalents and all borrowings. Liquid money market funds, government bond
funds and cash balances were primarily denominated in euros, whereas
borrowings to finance local operating assets are denominated in the currencies
of the countries concerned. Total borrowings, including bank borrowings and
short-term loans, amounted to EUR 213 million.

Richemont's financial structure remains very strong, with shareholders' equity
representing 71 % of total equity and liabilities.

***

Review of operations

1. Sales by region

                                                  Movement at:
                                                  Constant       Actual
In EUR         30 September      30 September     exchange       exchange
millions       2012              2011
                                                  rates          rates
Europe         1 857             1 514            + 19 %         + 23 %
Asia Pacific   2 103             1 718            + 9 %          + 22 %
Americas       698               602              + 4 %          + 16 %
Japan          448               380              + 4 %          + 18 %
               5 106             4 214            + 12 %         + 21 %

*Note: movements at constant exchange rates are calculated translating
underlying sales in local currencies into euros in both the current year and
the comparative year at the average exchange rates applicable for the
financial year ended 31 March 2012.

Europe

Europe accounted for 36 % of overall sales. The region enjoyed good growth,
with visitors/travellers driving the above-average increase. The highest
growth rates were in the Maisons' own boutiques in tourist destinations,
including the Middle East.

Asia Pacific

Sales in the Asia Pacific region accounted for 41 % of the Group total, with
Hong Kong and mainland China the two largest markets. Following two years of
exceptionally high rates of sales growth, the rate during the period under
review moderated. Sales growth in our Maisons' own boutiques in the region was
well above the increase in sales to wholesale partners, partly reflecting the
number of boutique openings in the last two years.

Americas

After two years of outstanding sales, the Americas region reported
single-digit growth before currency translation effects and represented 14 %
of Group sales. Certain exceptional High Jewellery sales took place in the
comparative period, primarily in the Jewellery Maisons.

Japan

The increase in sales in Japan reflected the continued momentum in all
segments.

2. Sales by distribution channel

                                                  Movement at:
                                                  Constant       Actual
In EUR millions 30 September      30 September    exchange       exchange
                2012              2011
                                                  rates          rates
Retail          2 618             2 083           + 15 %         + 26 %
Wholesale       2 488             2 131           + 8 %          + 17 %
                5 106             4 214           + 12 %         + 21 %

*Note: movements at constant exchange rates are calculated translating
underlying sales in local currencies into euros in both the current year and
the comparative year at the average exchange rates applicable for the
financial year ended 31 March 2012.

Retail

Overall retail sales, comprising directly operated boutiques and Net-a-Porter,
increased by 26 %. This continues to be well above the growth in wholesale
sales and 51 % of Group sales are now generated through its own retail
network.

The growth in retail sales partly reflected the good performance of
Net-a-Porter and the expansion of the Maisons' network of boutiques to 988
stores. Openings during the period were primarily in high-growth markets.

Wholesale

The Group's wholesale business, including sales to franchise partners,
reported solid growth. This performance reflects the marketing environment in
this channel.

3. Sales and operating results by business area

Jewellery Maisons

In EUR millions    30 September 2012  30 September 2011 Change
Sales              2 607              2 165             + 20 %
Operating results  958                734               + 31 %
Operating margin   36.7 %             33.9 %            + 280 bps

The Jewellery Maisons' sales grew by 20 %. Both Cartier and Van Cleef & Arpels
generated remarkable results.

The Maisons' boutique networks reported good growth and benefitted from
boutique openings. Demand for High Jewellery pieces and more accessible
jewellery ranges was strong. Demand for Cartier's watch collections was solid.

The significant increase in sales and positive gross margin development
generated an operating margin of 37 %.

Specialist Watchmakers

In EUR millions    30 September 2012  30 September 2011 Change
Sales              1 459              1 171             + 25 %
Operating results  470                312               + 51 %
Operating margin   32.2 %             26.6 %            + 560 bps

The Specialist Watchmakers' sales increased by 25 %, reflecting the worldwide
demand for haute horlogerie.

Most Specialist Watchmakers contributed to the significant increase in the
contribution margin to 32 %, reflecting the Maisons' pricing power and
operating leverage in an environment where currency fluctuations were
supportive.

Montblanc Maison

In EUR millions   30 September 2012  30 September 2011 Change
Sales             368                334               + 10 %
Operating result  53                 54                - 2 %
Operating margin  14.4 %             16.2 %            - 180 bps

Montblanc's sales increased by 10 %: they were primarily driven by watches and
currency effects. Compared with other Group businesses, Montblanc benefits
less from sales in tourist destinations.

The Maison's operating margin decreased to 14 %.

Other

In EUR millions    30 September 2012  30 September 2011 Change
Sales              672                544               + 24 %
Operating results  (15)               (17)              + 12 %
Operating margin   (2.2) %            (3.1) %           + 90 bps

'Other' includes the Group's Fashion and Accessories businesses, Net-a-Porter
and the Group's watch component manufacturing activities.

Richemont's Fashion & Accessories Maisons saw double-digit sales growth and
operating profits were in line with the prior period at EUR 25 million.

Sales growth at Net-a-Porter is normalising but continues to exceed the
Group's average. Net-a-Porter reduced its losses during the period, but
generated a positive operating cashflow.

Losses at the Group's watch component manufacturing facilities were in line
with the comparative period.

Corporate costs

In EUR millions                    30 September 2012  30 September 2011 Change
Corporate costs                    (86)               (8)               n/a
Central support services           (78)               (69)              + 13%
Other operating (expense)/income,  (8)                61                n/a
net

Corporate costs represent the costs of central management, marketing support
and other central functions (collectively central support services), as well
as other expenses and income which are not allocated to specific business
areas. The increase in central support service reflects the support of IT
systems and other long-term initiatives. On a constant exchange rate basis,
the cost of central support services increased by 10 %. In the comparative
period, other operating income included gains of EUR 70 million relating to
the Group's exchange rate hedging programme, which are reported within gross
profit. Following the cessation of hedge accounting, there were no material
exchange rate gains or losses reported in gross profit in the period under
review.

***

The Group's condensed consolidated financial statements of comprehensive
income, of cashflows and of financial position are presented in Appendix 1.
Richemont's unaudited condensed consolidated interim financial statements for
the period may be found on the Group's website at
http://www.richemont.com/investor-relations/reports.html

Richard Lepeu, Deputy Chief Executive      Gary Saage, Chief Financial Officer
Officer

Presentation

The results will be presented via a live internet webcast on 9 November 2012,
starting at 09:00 (CET). The direct link will be available from 07:00 (CET)
at: http://www.richemont.com

  * Live listen-only telephone connection: call one of these numbers 10
    minutes before the start of the presentation:

    Europe:       +41 91 610 56 00
    USA:          +1 866 291 4166
    UK:           +44 203 059 5862
    South Africa: 0800 992 635 (toll free)

  * An archived video webcast of the presentation will be available from:
    http://www.richemont.com/investor-relations/results-presentations.html
  * A transcript of the presentation will be available from:
    http://www.richemont.com/investor-relations/results-presentations.html

Interim report

The Richemont 2012 Interim Report will be published on 15 November 2012 and
will be available for download from the Group's website at
http://www.richemont.com/investor-relations/reports.html; copies may be
obtained from the Company's registered office or by contacting the Company via
the website at http://www.richemont.com/about-richemont/contact.html

Compagnie
Financière          Media contact           Investor contact
Richemont SA
Registered office:  Alan Grieve             Sophie Cagnard
50 chemin de la     Director of Corporate   Head of Investor Relations
Chênaie             Affairs
CP30, 1293 Bellevue
Geneva
Switzerland         Tel: +41 22 721 3507    Tel +33 1 58 18 25 97
                    E-mail:                 E-mail:
                    pressoffice@cfrinfo.net investor.relations@cfrinfo.net
Tel : +41 22 721
3500
Fax : +41 22 721
3550
Internet:
www.richemont.com

Statutory Information

Primary listing

SIX Swiss Exchange (Reuters "CFR.VX" / Bloomberg "CFR:VX" / ISIN
CH0045039655). The Swiss 'Valorennummer' is 4503965. Richemont 'A' bearer
shares are included in the Swiss Market Index ('SMI') of leading stocks.

Secondary listing

Johannesburg stock exchange operated by JSE Limited (Reuters "CFRJ.J" /
Bloomberg "CFR:SJ" / ISIN CH0045159024). South African depository receipts in
respect of Richemont 'A' shares.

The closing price of the Richemont 'A' share on 30 September 2012 was CHF
56.40 and the market capitalization of the Group's 'A' shares on that date was
CHF 29 441 million. Over the preceding six month period, the highest closing
price of the 'A' share was CHF 64.15 (10 September) and the lowest closing
price of the 'A' share was CHF 48.40 (12 July).

© Richemont 2012

Appendix 1

Condensed consolidated statement of comprehensive income

                                          Six months to      Six months to
                                          30 September 2012  30 September 2011
                                          EUR m              EUR m
Sales                                     5 106              4 214
Cost of sales                             (1 796)            (1 549)
Gross profit                              3 310              2 665
Selling and distribution expenses         (1 096)            ( 891)
Communication expenses                    ( 418)             ( 340)
Administrative expenses                   ( 408)             ( 342)
Other operating (expense)/income          ( 8)               ( 17)
Operating profit                          1 380              1 075
Finance costs                             ( 156)             ( 287)
Finance income                            57                 61
Share of post-tax results of associated   ( 1)               ( 1)
undertakings
Profit before taxation                    1 280              848
Taxation                                  ( 199)             ( 139)
Profit for the period                     1 081              709
Other comprehensive (loss)/income:
Currency translation adjustments
- movement in the period                  ( 30)              427
- reclassification to profit or loss      -                  1
Cash flow hedges
- net gains                               -                  20
- reclassification to profit or loss      1                  ( 70)
Other comprehensive (loss)/income, net of ( 29)              378
tax
Total comprehensive income                1 052              1 087
Profit attributable to:
Owners of the parent company              1 086              709
Non-controlling interests                 ( 5)               -
                                          1 081              709
Total comprehensive income attributable
to:
Owners of the parent company              1 057              1 086
Non-controlling interests                 ( 5)               1
                                          1 052              1 087
Earnings per share attributable to owners
of the parent company during the period
(expressed in EUR per share)
Basic                                     1.981              1.295
Diluted                                   1.947              1.266

Condensed consolidated statement of cash flows

                                          Six months to      Six months to
                                          30 September 2012  30 September 2011
                                          EUR m              EUR m
Operating profit                          1 380              1 075
Depreciation and impairment of property,  141                119
plant and equipment
Amortisation and impairment of other      43                 43
intangible assets
Loss on disposal of property, plant and   1                  -
equipment
Increase in provisions                    25                 26
Decrease in retirement benefit            ( 1)               ( 3)
obligations
Non-cash items                            13                 ( 55)
Increase in inventories                   ( 367)             ( 340)
Increase in trade debtors                 ( 289)             ( 288)
Increase in other receivables and         ( 32)              ( 27)
prepayments
(Decrease)/increase in current and        ( 339)             56
long-term operating liabilities
Cash flow generated from operations       575                606
Interest received                         6                  17
Interest paid                             ( 11)              ( 13)
Other investment income                   2                  3
Taxation paid                             ( 150)             ( 129)
Net cash generated from operating         422                484
activities
Cash flows from investing activities
Acquisition of subsidiary undertakings
and
other businesses, net of cash acquired    ( 30)              ( 3)
Acquisition of associated undertakings    -                  ( 1)
Acquisition of property, plant and        ( 218)             ( 140)
equipment
Proceeds from disposal of property, plant 1                  17
and equipment
Acquisition of intangible assets          ( 38)              ( 29)
Acquisition of investment property        ( 13)              -
Investment in money market and government ( 2)               ( 151)
bond funds
Proceeds from disposal of money market    230                143
and government bond funds
Acquisition of other non-current assets   ( 17)              ( 16)
Proceeds from disposal of other           7                  9
non-current assets
Net cash used in investing activities     ( 80)              ( 171)
Cash flows from financing activities
Proceeds from borrowings                  127                10
Repayment of borrowings                   ( 4)               ( 101)
Acquisition of non-controlling interests  ( 3)               -
Dividends paid                            ( 164)             ( 133)
Payment for treasury shares               ( 206)             ( 279)
Proceeds from sale of treasury shares     120                74
Capital element of finance lease payments ( 1)               ( 1)
Net cash used in financing activities     ( 131)             ( 430)
Net change in cash and cash equivalents   211                ( 117)
Cash and cash equivalents at beginning of 872                657
period
Exchange gains on cash and cash           5                  32
equivalents
Cash and cash equivalents at end of       1 088              572
period

Condensed consolidated statement of financial position

                                              30 September 2012  31 March 2012
Assets                                        EUR m              EUR m
Non-current assets
Property, plant and equipment                 1 590              1 529
Goodwill                                      491                479
Other intangible assets                       314                316
Investment property                           66                 64
Investments in associated undertakings        9                  10
Deferred income tax assets                    483                443
Financial assets held at fair value through   64                 69
profit or loss
Other non-current assets                      298                248
                                              3 315              3 158
Current assets
Inventories                                   4 033              3 666
Trade and other receivables                   1 133              750
Derivative financial instruments              22                 27
Prepayments                                   109                116
Financial assets held at fair value through   2 173              2 400
profit or loss
Cash at bank and on hand                      2 433              1 636
                                              9 903              8 595
Total assets                                  13 218             11 753
Equity and liabilities
Equity attributable to owners of the parent
company
Share capital                                 334                334
Treasury shares                               ( 596)             ( 515)
Hedge and share option reserves               255                255
Cumulative translation adjustment reserve     1 382              1 412
Retained earnings                             7 950              7 123
                                              9 325              8 609
Non-controlling interests                     2                  9
Total equity                                  9 327              8 618
Liabilities
Non-current liabilities
Borrowings                                    51                 22
Deferred income tax liabilities               27                 24
Retirement benefit obligations                31                 33
Provisions                                    163                158
Other long-term financial liabilities         188                176
                                              460                413
Current liabilities
Trade and other payables                      901                948
Current income tax liabilities                403                299
Borrowings                                    1                  4
Derivative financial instruments              90                 124
Provisions                                    153                163
Accruals and deferred income                  377                358
Short-term loans                              161                62
Bank overdrafts                               1 345              764
                                              3 431              2 722
Total liabilities                             3 891              3 135
Total equity and liabilities                  13 218             11 753

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