• Net sales of CHF 7 553 million for the Group, at current exchange rates, a decrease of 10.6%, or CHF 7 534 million, a minus of 10.8% at constant exchange rates.
• The Watches & Jewelry segment, including Production, generated net sales of CHF 7 305 million, minus 10.7% at current exchange rates.
• Operating result of CHF 805 million, equivalent to an operating margin of 10.7 (minus 44.5% compared to previous year).
• The Watches & Jewelry segment, including Production, generated an operating margin of 12.2% (previous year 18.8%). Compared to the first half year, operating margin improved by 2 percentage points in the second half, despite massive shortfalls in purchase and order volumes of watch movements and components from third-party customers, and maintaining of capacities and workforce in production facilities.
• Net income of CHF 593 million, equivalent to a net margin of 7.9% (minus 47.0% compared to the previous year).
• Equity practically unchanged at CHF 11.1 billion, due to the share buyback of CHF 332 million, equivalent to an equity ratio of 84.5% (previous year 84.7%).
• Dividend proposal: CHF 6.75 per bearer share and CHF 1.35 per registered share (previous year CHF 7.50 per bearer share, CHF 1.50 per registered share). The months of November, December and January showed, particularly in Mainland China, very good growth in the Watches & Jewelry segment, with a substantial improvement in operating margin.
• Based on the positive development of the last three months, healthy growth is expected for the year 2017.

Outlook for 2017

Consumer interest and the potential for Swiss watches remains strong. Particularly Asia and the Middle East are showing again increasing sales in recent months, including brands in the luxury segment, so that healthy growth in local currency can again be expected for the year 2017, even more this expectation also applies to the USA and Europe.

With its global distribution network and the successful introduction of E-Commerce already in 2001, the Group is in an excellent position to serve its customers, wherever they are in the world, at any time. Our very motivated employees in retail, in distribution, and over the entire production chain make this possible.

The number of patent applications in the year under review again exceeded 180 patents, in the areas of electronic smart and mobile device products, mechanical watches and watch movements, as well as in “habillage” and for innovative production methods (Industry 4.0).

In the Electronic Systems segment, the newest developments in the area of dual frequency RFID technology (NFC and UHF), an innovative Bluetooth module, integrated circuits with lowest energy consumption and the most innovative sensor technology (particularly pressure sensors), as well as the real time clock (RTC) module will ensure growth. In addition, Belenos will put its pilot production line for the new batteries into operation. Also, Swiss Timing will show up with many technological innovations in timekeeping for sporting events.

The year 2017 will be marked by many new product launches by our brands. The 60th anniversary of the Omega Speedmaster will provide a strong stimulus. The creative and very successful use of Omega’s E-Commerce, with Speedy Tuesday on Instagram, demonstrates the great potential and enormous demand. Swatch will launch the unique new very slim Skin collection, as well as the second generation of the Swatch Bellamy as a contactless payment device. This is just to name a few examples.

Based on the positive sales figures in all segments in recent months, including January, Swatch Group anticipates healthy growth in 2017.