Compagnie Financière Tradition S.A.

Ladies and gentlemen, welcome to the Richemont Financial Year 2025 Interim Results presentation. I'm Moira, your call operator. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. Operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Alessandra Girolami, IR Director. Please go ahead.

Thank you, Moira, and good morning, everyone. Thank you for joining us for Richemont's half-year results presentation for the period ended 30th of September 2024. Here with us today are Nicolas Boss, Chief Executive Officer, Burkhard Grun, Chief Finance Officer, and James Fraser, Investor Relations Executive. We would like to remind you that the company announcement and results presentation can be downloaded from richmond.com and that the replay of this audio webcast will be available on our website today at 3 p.m. Geneva time. Before we begin, please take note of our disclaimer regarding forward-looking statements in our ad hoc announcement and on slide two of our presentation. Turning now to the presentation, Burkhardt will begin by discussing key highlights and group sales. I will then provide further detail on the performance of our Maison. And finally, Burkhardt will take you through the financials and offer some concluding remarks. This presentation will then be followed by Q&A session. Burkhardt, over to you.

Thank you, Alessandra. Good morning to everyone. Thank you for joining us today. During the first half of the year, Richemont delivered a resilient performance in a persistently challenging macroeconomic and geopolitical environment. Sales for the period were stable at constant rates and just 1% lower at actual exchange rates. Operating profit of 2.2 billion euros was 17% lower over the prior year period, or 12% lower excluding adverse foreign exchange movements. Reported operating margin was 21.9%, a 410 basis point reduction compared with a year ago. Profit from continuing operations at 1.7 billion euros was 20% lower than the prior year period. Cash flow from operating activities amounted to 1.2 billion euros. Finally, our net cash position remained very solid at 6.1 billion euros, taking into consideration the recent 1.7 billion euro dividend payment that was approved by shareholders at the 2024 AGM in September. In the first half, we achieved stable sales at constant exchange rates against the demanding plus 12% comparative in the prior year period. The Julie Maisons, our largest business area, led this performance by growing by mid-single digits largely compensating for lower sales at the specialist watchmakers. Most regions posted very solid growth, with the Americas, Japan and Middle East and Africa regions all growing by double digits. Illustrating the benefits of the group's balanced regional footprint, growth in those regions offset the decline in Asia-Pacific led by China. Excluding mainland China, Hong Kong and Macau combined, group sales increased by 11% at constant exchange rates the first half of the year. In the second quarter, while facing continued macroeconomic challenges, particularly in China, our sales performance remained resilient thanks to the same drivers as in Q1, the strength of our jewelry maisons and a balanced regional mix, resulting in sales just 1% lower than the prior year period at constant exchange rates and 2% lower at actual exchange rates. The decline in operating profit from continuing operations in the first half mostly reflected the impact of lower sales at the specialist watchmakers, adverse foreign currency movements, and continued investment in the growth of armisans. In addition, one-off and perimeter change effects impacted the underlying cost base. The first half was also marked by significant strategic developments. We made further investments in the manufacturing capacity of our jewelry maisons by opening, acquiring, or expanding facilities to support higher sales. We finalized the acquisition of the distinctive Italian jewelry Maison Vernier and are delighted to welcome the talented team to the Richemont family. And as you know, a month ago, we announced the signing of an agreement by which MyTheresa will acquire 100% of the share capital of YNAP, with the closing expected to happen in the first half of calendar year 2025. With its strong reputation for operational excellence and highly performing infrastructure, we have no doubt that MyTheresa will be the right home for YNAT. Finally, Richemont strengthened its corporate governance with the appointment of Nicolas Boss as Group Chief Executive Officer and new leadership at some of our largest maisons, with Louis Ferla as CEO of Cartier and Catherine Regnier as CEO of Van Cleef & Arpels. Let me now discuss the group sales performance in more detail, first by region and then by distribution channel. Unless otherwise stated, all comments refer to year-on-year changes at constant exchange rates. The Americas continue to show remarkable growth, with a double-digit sales increase against a mixed macroeconomic backdrop. In the second quarter, sales growth accelerated to plus 12% after plus 10% in the first quarter, supported by solid local demand. The Americas made up 23% of group sales during the period, up from 21% in the prior year period, and the U.S. confirmed its rank as the largest individual market for the group. But the performance in Asia-Pacific weighed on the overall group, with an 18% decline in sales in the first half, largely driven by a 27% drop in sales in China, Hong Kong and Macau combined. Our operations in China not only faced a demanding plus 34% comparative base, but also a very low consumer confidence this year, adversely impacted by an unsupportive property market. In other parts of the region, Korea and Malaysia both recorded double-digit growth. In the second quarter, the decline in sales in the region was in line with the first quarter at minus 18%. Sales in Asia Pacific made up 34% of group sales, a reduction from 42% in the prior year period. Sales in Europe increased by mid-single digits, driven by the resilience of domestic demand and higher tourist spending, largely from North American and Middle Eastern clients. growth slightly accelerated in the second quarter to plus 6% after plus 5% in the first quarter. Sales in Europe represented 23% of group sales, slightly higher than in H1 2024. Almost all main markets grew, with notable increases in Spain and Turkey. Japan saw its sales increase by 42%, fueled by solid domestic demand as well as inbound tourism, the latter supported by the favorable foreign exchange rate environment. As the Japanese yen strengthened this summer, tourism spending decelerated, translating into slower Q2 growth at plus 25% from nearly 60% in Q1. First half, Japan's contribution to group sales rose to 11%, gaining three percentage points over the prior year period. The Middle East and Africa region also enjoyed a double-digit increase in sales, largely on the strength of domestic purchases in most main markets, and to a minor extent from inbound tourism. Sales in the region made up 9% of group sales, up from 7% in the first half of the prior year. The largest contributors to sales growth in value terms were Japan and the Americas, with each region delivering over 200 million euros in incremental sales. Combined with the increased contribution of Europe and the Middle East and Africa, this performance enabled the group to largely offset the significant decline in Asia-Pacific sales, illustrating the strength of our diversified regional footprint. Let us now turn to sales by distribution channel, with growth expressed at constant exchange rates. Retail represented 70% of group sales, a one-point increase over the prior year period. Retail sales rose by 2%, led by the jewelry maisons. All regions, except Asia Pacific, posted growth, with notable double-digit expansion in the Americas, Japan, and Middle East and Africa. Online retail sales at 6% of group sales grew by 7% versus the prior year period. Sales increased in almost all regions, most notably in the Americas, Japan, and the Middle East and Africa. The business area growth was driven by both the jewelry maisons and other. Now moving to wholesale sales, which includes sales to external monobrand franchise partners and third-party multi-brand retail partners. sales to agents, and royalty income. Sales on the channel represented 24% of group sales, down from 26% a year ago. Wholesale sales reduced by 6%, driven down by double-digit reduction at the specialist watchmakers primarily, and with only the other business area posting growth. Japan and the Americas recorded strong growth during the period, but only partially mitigating the significant decline in Asia Pacific. Overall, direct-to-client sales, which represent sales in our directly operated stores and online retail sales, made up 76% of group sales, which translates into a 150 basis point increase over the same period a year ago. largely driven by the jewellery maisons, which reached a DTC rate of 83%. Back over to you, Alessandra.