Swatch Group

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The Swatch Group SA

logo
legal form Corporation
ISIN CH0012255144
founding 1931
Seat Neuchâtel , Switzerland
management Nick Hayek ( CEO )
Nayla Hayek ( Chairman of the Board )
Number of employees 37,123 (December 31, 2018)
sales 8.475 billion CHF (2018)
Branch Watch industry
Website www.swatchgroup.com

The Swatch Group SA is a global company specializing in the manufacture and sale of finished watches and jewelery as well as watch movements and components. In addition, the Swatch Group is also active in the manufacture and sale of electronic systems and components for both the watch industry and other sectors. The company has its legal seat in Neuchâtel , the administration is in Biel / Bienne .

history

The Swatch Group was created in 1983 as SMH ( Société de Microélectronique et d'Horlogerie SA / Swiss Society for Microelectronics and Watch Industry AG ) from the merger of the watch manufacturers ASUAG ( General Swiss Watch Industry , founded 1931) and SSIH ( Societé Suisse de l'Industrie Horlogère , founded in 1930) after a severe crisis in the Swiss watch industry , which was caused in the 1970s by the enormous low-cost competition from Asia, had forced the two companies into bankruptcy . The establishment of SMH was carried out by Nicolas George Hayek sen. together with Stephan Schmidheiny as the largest financier, who trusted the skills and intentions of Hayek. In 1998 the group changed its name to Swatch Group (The Swatch Group AG) .

The father of the Swatch Group and the savior of the Swiss watch industry from its crisis in the 1970s is therefore considered to be Nicolas Hayek Sr., who chaired the Group's board of directors until his death on June 28, 2010. His daughter, Nayla Hayek, was subsequently elected President of the Board of Directors. CEO is Nicolas Hayek's son Georges Nicolas Hayek jun. (known as Nick Hayek ).

Major acquisitions

  • The Swatch Group took over the traditional company Blancpain SA in 1992 for 60 million CHF. The brand name Blancpain was introduced as early as 1735, probably the oldest wristwatch brand in the world. Marc A. Hayek, grandson of the founder of the Swatch Group, successfully repositioned the corresponding watch collection from 2002. In 2010, Frédéric Piquet SA in Le Brassus, Vallée de Joux , which had previously been an important supplier of components for Blancpain, was also taken over.
  • Another company with a long tradition since 1775 was Breguet SA , founded in Paris (table and pocket watches, later wristwatches and chronometers). Prior to Swatch, it was owned by the finance company Investcorp. Breguet was taken over by Swatch in 1999 and is now one of the Swatch Group's prestige wristwatch brands.
  • In 2000, the Swatch Group bought Glashütter Uhrenbetrieb GmbH in the city of Glashütte (Saxony) . Its beginnings go back to 1845. At the time of the GDR , the local watch manufacturers became the VEB Glashütte watch company . After the reunification of Germany, Glashütter Uhrenbetrieb GmbH became its legal successor in 1990. After that, this company also used movements from ETA, a subsidiary of the Swatch Group, in addition to its own products, before the company was taken over by Swatch.
  • On March 26, 2013, the Swatch Group bought HW Holding Inc. , owner of Harry Winston Inc. in New York, USA, a company specializing in high-quality jewelry and corresponding watches. The purchase price of CHF 711 million included goodwill of CHF 569 million.

Companies

The Swatch Group is a holding company that employs over 36,000 people in 37 subsidiaries abroad in around 50 countries. The registered seat is in Neuchâtel, the administration in Biel. In 2016 the group generated sales of CHF 7.553 billion. In terms of value, the company is the world's largest manufacturer of finished watches.

The Swatch Group's core business is the watches and jewelry segment , which contributes around 97 percent to total group sales. (The former Production segment has been integrated into it since 2013. ) Electronic systems contribute around 3 percent to Group sales.

The Swatch Group is represented in the watch sector with 18 brands as well as in the jewelry sector in all market and price segments. The prestige market segment includes the watch brands Breguet , Blancpain and Glashütte-Original . Jaquet Droz , Léon Hatot , Omega and Harry Winston are in the luxury market segment . Longines , Rado and Union Glashütte can be found in the upper price segment . The brands Tissot , Balmain , Hamilton , Calvin Klein , Certina and Mido are located in the middle market segment . The Swatch and Flik Flak brands can be found in the basic market segment . In addition, there is the private label Endura , which produces watches under license on behalf of companies or other brands, so u. a. for Mango, Timberland or Asics.

The Swatch Group today comprises the following 18 watch brands, broken down by price segment:

For the sale of watches in the prestige and luxury segment, the Swatch Group maintains specially created multi-brand boutiques under the name Tourbillon at exclusive locations, named after the watch complication . A separate presentation is made for each brand according to the shop-in-shop concept .

Manufacturing companies and suppliers

The Swatch Group includes manufacturing companies that deliver movements and components to the company's own watch brands, as well as those outside the group:

  • Comadur (ceramics, sapphire glasses, hard materials), (CH)
  • German Dial Manufaktur GmbH (Dial), (DE)
  • Dress Your Body (jewelry production), (CH)
  • ETA SA (clockwork), (CH)
  • Favre et Perret SA (housing), (CH)
  • GHHH (Habillage), (CH)
  • Lascor (cases, bracelets), (CH)
  • Lemania (raw works)
  • Meco (crowns, pushers), (CH)
  • MOM Le Prélet
  • Nivarox-FAR (Components of the Regulatory Bodies), (CH)
  • Nouvelle Lémania SA (movements), (CH)
  • Frédéric Piguet SA (clockwork), (CH)
  • Rubattel & Weyermann SA (dials), (CH)
  • Georges Ruedin SA (housing), (CH)
  • Simon and Membrez
  • Unitas (raw works)
  • Universo (pointer), (CH)
  • Valdar, (CH)

There are also various other suppliers in the electronics sector, including the battery manufacturer Renata AG , EM Microelectronic Marin (chip and sensor manufacturer) and Micro Crystal (quartz).

Organization and management

The Swatch Group is led by an eight-strong management team. In addition, there is an eleven-strong executive management team. Georges Nicolas (Nick) Hayek jun. Is President of the Executive Committee and therefore CEO. The Board of Directors consists of five members and was chaired by Nicolas George Hayek (senior), who also held the largest block of shares in the Swatch Group, until his death in June 2010. On June 30, 2010, his daughter Nayla Hayek was elected President of the Board of Directors. The Swatch Group's corporate governance has been criticized by several organizations. In the zRating ranking, the Swatch Group ranks 158th out of a total of 165 Swiss companies assessed.

The Swatch Group has 37 subsidiaries abroad on four continents. In Europe it has subsidiaries in Germany, Austria, Belgium, Denmark, Finland, France, Greece, Great Britain and Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Russia, Sweden, Spain, and Turkey. In America there are subsidiaries in the USA, Canada, the Caribbean, Brazil and Mexico, and in Asia in China, Hong Kong, Macau, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, Taiwan and the United Arabs Emirates. There are also subsidiaries in Australia and South Africa.

Share and ownership

There are registered shares with a nominal value of CHF 0.45 and bearer shares with a nominal value of CHF 2.25. At the end of 2015, 124,045,000 registered shares and 30,840,000 bearer shares were outstanding. The bearer shares are members of the Swiss Market Index , while the registered shares are included in the SMI MID .

The Swatch Group's equity at the end of 2016 was CHF 11.073 billion, which is 84.5% of the balance sheet total.

Significant shareholders are:

Right to vote Shareholder group
40.1% Hayek Pool as well as related companies, institutions and persons

The Swatch Group not only has two share categories with different nominal value / voting weight, but also an opting-up clause with a limit of 49% in its articles of association. This means that the Hayek pool with a share of 40.5% of the votes can increase its share package up to 49% of the votes or sell it at a premium without having to make a takeover offer to the other shareholders.

Nicolas G. Hayek Watchmaking School

The Swatch Group also includes the Nicolas G. Hayek Watchmaking School . This is dedicated to the training of professional watchmakers and future customer service managers for the Swiss watch industry by offering a WOSTEP (Watchmakers of Switzerland Training and Education Program). The schools are located in Miami (USA), Shanghai (China), Kuala Lumpur (Malaysia), Pforzheim (Germany) and Glashütte (Germany).

Projects

For several years now, the Swatch Group has been building not only watchmaking but also striking structures at strategically important locations that represent the group around the world. At the end of November 2014, the historic Peterhof on Bahnhofstrasse in Zurich, known as Griederhaus , was bought.

Nicolas G. Hayek Center, Tokyo

Since the Asian market is very important for the group and is likely to gain in importance in the future, the company built the Nicolas G. Hayek Center in Tokyo . The 14-story building in the Ginza shopping district has hanging gardens that green all fourteen floors, hydraulic lifts inside and an overall ecological concept for the building. The building houses boutiques and the headquarters of the Swatch Group Japan.

Cité du Temps, Geneva

In Geneva there is a building called Cité du Temps. The historic building on the Pont de la Machine houses the Swatch Museum, exhibition and seminar rooms, a lounge and a restaurant. The Cité du Temps was renovated in accordance with the guidelines set by the city of Geneva.

Swatch Art Peace Hotel, Shanghai

The historic Peace Hotel in Shanghai , China, is still under renovation . After the renovation work, the Peace Hotel will serve as a platform for Chinese and international artists.

New construction of the Swatch headquarters, Biel

On October 3rd, 2019, after almost five years of construction, the new Swatch headquarters opened in Biel. The arched and curved wooden lattice construction clad with translucent honeycomb elements was designed by the Japanese architect Shigeru Ban . Next to it is the Cité du Temps and the new Omega factory.

Litigation

The Swatch Group is taking legal action against Apple, Inc. in several countries because, in Swatch's opinion, there is a risk of confusion between the registered trademarks iSwatch and iWatch (Apple). Both devices are smartwatches . The Apple Watch has been available since April 24, 2015.

Web links

Commons : Swatch Group  - collection of images, videos and audio files

Individual evidence

  1. ↑ a b c Entry in the commercial register of the Canton of Neuchâtel
  2. ↑ a b Annual Report 2018
  3. ↑ a b c d e Annual Report 2016
  4. ↑ Swatch Group history on swatchgroup.com
  5. ↑ History of Blancpain
  6. ↑ Chapter "Watches and Jewelry" on the Swatch Group website
  7. ↑ Swatch Group: Nayla Hayek: Chairman of the Board of Directors, press release of June 30, 2010.
  8. ↑ Andreas Möckli: D as long sins of the Swatch Group. In: Tages-Anzeiger . May 27, 2015, accessed May 31, 2015.
  9. ↑ Martin Gollmer: Forbo is the best-managed listed company in the country. In: Finance & Economy. May 27, 2015.
  10. ↑ Griederhaus goes to Swatch Group. , In: Neue Zürcher Zeitung. November 27, 2014, accessed May 31, 2015.
  11. ↑ Sina Freiermuth, Stefanie Knoll: New Swatch snake in Biel - watch companies rely on million dollar buildings. In: srf.ch . October 5, 2019, accessed October 7, 2019 .
  12. ↑ Swatch inaugurates new headquarters in Biel. In: Swatch Group. October 3, 2019, accessed October 4, 2019 .
  13. ↑ Swatch Group defends itself against Apple. In: Finance & Economy. May 5, 2014