General Meeting of the Swatch Group

The General Meeting of the Swatch Group was held on 23 May last at the Tissot Vélodrome in Granges. In a relaxed family atmosphere the 3,465 or so shareholders who attended approved the group’s proposals by a large majority. They were also invited to recreate their childhood fantasies, echoing the theme chosen for the watch industry giant’s 2017 annual report.

Nayla Hayek, Chairwoman of the Board of Directors, began by expressing her recognition to all the staff members of the company who, despite the challenging environment of the watch industry in 2016 made a full contribution to future results, to innovation and development of the entity. She then encouraged the meeting to recall the boundless imagination and fantasy which animated each one of them at the early age of six. Following up the same idea the Group Chairwoman pointed out that results are not the only important factor; the project and its implementation phase also count. In the same innovative spirit the development of the Bellamy in China and the System51 Irony signed by Swatch, Deep Black by Omega, the new version of Fifty Fathoms by Blancpain, the jewellery creations of Harry Winston, the introduction of the "Industrie 4.0" concept at Eta and the production companies as well as the expansion of innovative methods of industrialisation at Renata were all landmarks of the year.

Nick Hayek paid tribute to two key landmarks in the company’s history: the 30^th anniversary of the Flik Flak house and the 60^th anniversary of the Omega Speedmaster. To mark the occasion, a communication campaign had been launched on the social networks and met with great success among lovers of the brand. The Swatch Group CEO went on to recall the various investments made in the field of electronics and also in some boutiques.

Thierry Kenel, the finance director, went on to explain the 2016 results. Net sales stood at 7.5 billion francs, -10.8% down on the previous year. One-third of this result had been generated in Europe (including Switzerland). More than half in Asia (with Hong Kong) and the Middle East with the rest spread between America, the Pacific region and Africa. The operating result for its part stood at 805 million, 44.5% lower than in the previous year. The net result reached 593 million (-47.0%). The meeting agreed by a very wide majority to accept the Board of Directors’ proposal to fix the dividend at 1.35 francs per registered share and 6.75 francs per bearer share. Thierry Kenel went on to point out that despite the difficult environment the group had invested 558 million, including 238 million in technical equipment and machinery.

Despite the result of the previous year’s vote, the little electronic boxes had made their appearance again and were preferred to the traditional method of voting by a show of hands. Contrary to the situation in previous years no shareholder asked to speak on any other business. The 2016 management report (annual report, annual financial statement and consolidated financial statements) was approved by a wide majority. The meeting also granted a release to the Board of Directors and re-elected its members, together with those of the Executive Board.

June 08, 2017