COMPAGNIE FINANCIERE RICHEMONT ANNUAL

Operating and Financial Review

Business review Regional & Central Functions Richemont has support functions around the world, which bring to our Maisons all the expertise, competences and tools they need to grow their brand equity and focus on their strengths in design creation, sales and marketing. Working as business partners with the Maisons, they foster the capturing of synergies and the sharing of best practices, while respecting the specifics of each Maison. 26 Richemont Annual Report and Accounts 2019 Business review: Regional & Central Functions Richemont Richemont’s regional and central functions enable our Maisons to enter new markets more easily and, aided by in-house tools, support our teams and development initiatives. With some 6 000 employees directly employed by our subsidiaries, these functions make a regular and significant contribution to the Group’s sales growth and operating margins. The following section highlights specific developments during the year under review. REGIONAL FUNCTIONS Europe and Latin America areas of finance and logistics. The market for prime retail locations This year the focus in Europe and Latin America was on continues to be extremely competitive and our real estate teams empowering the local market teams to establish client-centric, secured boutiques in key locations for our Maisons. This region also entrepreneurial and cross-functional initiatives to foster business invested in talent programmes and achieved awards in Hong Kong development and engagement. On the operational side, the and the People’s Republic of China in recognition of these efforts. focus was on value creation and streamlining processes across Going forward we will drive for continuous improvement in all all regional functions, as well as managing uncertainty in social areas in order to support the operations and development of all our and political environments. Maisons in the region. For the coming year the objective is to accelerate the transition North America towards innovation and flexibility, driven by modernisation This year was an important year for strengthening partnerships with and digitalisation. our clients, partners and employees. The region solidified a joint Middle East, India and Africa management structure with a change of mindset and culture towards The Group’s fifth region was created in April. In the Middle East, more empowerment, engagement and collabo