The Swatch Group

The Swatch Group SA is a global company that specializes in the manufacture and sale of finished watches, jewelry, watch movements and components. In addition, the Swatch Group is active both for the watch industry as well as for other industries in the manufacture and sale of electronic systems and components. The company has its legal domicile in Neuchâtel, the administrative headquarters is located in Biel / Bienne.

History

The Swatch Group was formed in 1983 as SMH ( Société de Microélectronique et d' Horlogerie SA / Swiss Corporation for Microelectronics and Watchmaking Industries ) from the merger of watch companies ASUAG ( General Swiss Watch Industry, founded in 1931 ) and the SSIH ( Societé Suisse de l'Industrie Horlogère, founded in 1930 ) after a serious crisis in the Swiss watch industry, which was caused in the 1970s by the enormous low-cost competition from Asia, the two companies are forced into bankruptcy. 1998, the Company changed its name to Swatch Group ( The Swatch Group AG).

As the father of the Swatch Group and as a savior of the Swiss watch industry from its crisis in the 1970s applies Nicolas George Hayek sen., Which chaired the Board of the group until his death on 28 June 2010. In following his daughter Nayla Hayek was elected President of the Board. CEO is Nicolas Hayek's son Georges Nicolas Hayek Jr.. (known as Nick Hayek ).

Significant acquisitions

  • The acquisition of the traditional company Blancpain SA took place in 1992 for 60 million CHF. The brand name Blainpain was introduced already in 1735, probably the oldest watch brand in the world. Marc A. Hayek, grandson of the founder of the Swatch Group, the appropriate collection of watches from 2002 repositioned successfully. 2010, the Company Frederic Piquet SA was additionally in Le Brassus, Vallée de Joux, over which was previously a major supplier of components for Blancpain.
  • Another company with a long tradition since 1775 was the Breguet SA, founded in Paris ( desktop and pocket watches, wrist watches and chronometers later ). Beforehand to Swatch it was owned by the finance company Investcorp. Breguet was acquired by Swatch in 1999 and is now one of the prestigious watch brands of the Swatch Group.
  • In 2000, the Swatch Group bought the glass Uhrenbetrieb GmbH in the town of Glashütte ( Saxony). Its beginnings go back to 1845. At the time of the GDR emerged from the watch companies based VEB Glashütte watch companies. After the reunification of Germany, the glass Uhrenbetrieb GmbH was founded in 1990 its successor. Then put this company in addition to already own brands also movements by ETA, a subsidiary of the Swatch Group, one before the company was acquired by Swatch.
  • On March 26, 2013, the Swatch Group bought the HW Holding Inc., owner of Harry Winston Inc., New York, USA, a company specializing in high quality jewelry and watches respective companies. The purchase price of CHF 711 million included a goodwill of CHF 569 million.

Business

The Swatch Group is a holding company engaged in 37 overseas subsidiaries in around 50 countries through 33,600 employees. The registered office is located in Neuchâtel, the administrative headquarters in Biel. 2013, the company generated group sales of CHF 8.456 billion. The company is the world's largest manufacturer of finished watches.

The core business of the Swatch Group is the allocation for watches and jewelery, which accounts for around 96 percent of total group sales. ( Since 2013, the former Production segment are integrated in it. ) Electronic systems contribute about 4 percent of consolidated revenue.

The Swatch Group is represented both in the watch sector with 18 brands and in the jewelery sector in all market and price segments. For prestige market segment include the watch brands Breguet, Blancpain and Glashütte Original. In the luxury market segment are Jaquet Droz, Léon Hatot, Omega and Harry Winston. In the upper price segment Longines, Rado and Union Glashütte can be found. In the mid-market segment, Tissot, Balmain, Hamilton, Calvin Klein, Certina, Mido and are located. In the base market segment you will find the brands Swatch and Flik Flak. In addition, the private label Endura, which produces on behalf of companies or other brands under license watches so, inter alia, for Mango, Timberland or Asics.

The Swatch Group today comprises the following 18 brands of watches broken down by price range:

  • Prestige and Luxury Range Breguet (CH)
  • Blancpain (CH)
  • Glashütte Original (D)
  • Jaquet Droz (CH)
  • Léon Hatot (CH)
  • Harry Winston
  • Omega (CH)
  • Longines (CH)
  • Rado (CH)
  • Union Glashütte (D)
  • Tissot (CH)
  • Calvin Klein ( CH)
  • Balmain (CH)
  • Certina (CH)
  • Mido (CH)
  • Hamilton ( CH)
  • Swatch (CH)
  • Flik Flak (CH)
  • Endura (CH)

For the distribution of watches in prestige and luxury segment as well as the cult - clock Swatch, the Swatch Group has under the name Tourbillon exclusive locations specially created boutiques. Named after the watchmaking complication.

Production companies and suppliers

To Swatch Group has 14 production companies, the movements and components to the Group's own, but also to minority watch brands provide:

  • ETA SA ( Movements ) (CH)
  • Frédéric Piguet SA ( Movements ) (CH)
  • Valdar (CH)
  • Nivarox FAR ( components of the regulatory bodies ), ( CH)
  • Comadur (ceramics, sapphire crystal, hard materials) (CH)
  • Rubattel & Weyermann SA ( dials ), ( CH)
  • Nouvelle Lemania SA ( Movements ) (CH)
  • German dial Manufaktur GmbH ( dials ), ( DE)
  • Universo ( pointer) (CH)
  • Favre et Perret S. A. (Housing), (CH)
  • Georges Ruedin (housing ) (CH)
  • Lascor (housing, bracelets ), ( CH)
  • Ghhh ( Habillage ) (CH)
  • Meco ( crowns, pushers ), ( CH)

There are also various suppliers, including the battery manufacturer Renata AG. More companies in the Swatch Group composite are: EM Microelectronic Marin ( chip manufacturers ) Lemania ( movement blanks ), Micro Crystal ( quartz ), Nivarox ( driving forces ) and Unitas ( movement blanks ).

Organization and management

The Swatch Group is led by an eight-member Executive Committee. In addition, a eleven-member extended Group Management. Chief Executive Officer and thereby CEO Georges Nicolas ( Nick ) Hayek, Jr.. The Board of Directors shall be composed of six members and was until his death in June 2010 by Nicolas George Hayek ( Sr. ) presides, who also delivered the largest block of shares of the Swatch Group. June 30, 2010 his daughter Nayla Hayek was elected President of the Board.

The Swatch Group has over 37 subsidiaries in foreign countries on four continents. In Europe, it has subsidiaries in Germany, Austria, Belgium, France, Great Britain, Greece, Italy, Luxembourg, Netherlands, Poland, Portugal, Russia, Spain, Sweden, and the Czech Republic. On the American continent subsidiaries are in the U.S., Canada, Brazil, Mexico and Panama and Asia, in China, South Korea, United Arab Emirates, India, Japan, Malaysia, Singapore and Thailand. In addition, the subsidiary is in Australia.

Ownership

There are registered shares with a nominal value of 0.45 CHF and bearer shares with a nominal value of 2.25 CHF. By the end of 2013 124'045'000 30'840'000 registered shares and bearer shares are outstanding.

The equity of the Swatch Group is by the end of 2013 CHF 9,574 billion, representing 82.3 % of total assets.

Major shareholders are:

Nicolas G. Hayek Watchmaking School

To Swatch Group also includes Nicolas G. Hayek Watchmaking School Watchmaking School. This is dedicated to the training of professional watchmakers and future customer service manager for the Swiss watch industry by offering a WOSTEP training ( 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, the Swatch Group is perceived by the public in addition to the watch production by another activity. Created to strategically important locations and develop eye-catching buildings that represent the group in the world.

Nicolas G. Hayek Center, Tokyo

Since the Asian market for the group is very important and in the future is likely to become even more important, the company built the Nicolas G. Hayek Center in Tokyo. Centers situated in precious Shopping district Ginza, the 14- story building is the landmark of the Swatch Group in Japan. The extravagant architecture, the Hanging Gardens, the greening all fourteen floors, the hydraulic lifts inside and the ecological concept of the building make the Nicolas G. Hayek Center a landmark of Tokyo. In the building there are shops of prestige brands, as well as the headquarters of the Swatch Group Japan.

Cité du Temps, Geneva

Not only in the Far East, the Swatch Group has significant buildings, also in Geneva there is a building that is unique in architecture and atmosphere: The Cité du Temps. The historical building of the Pont de la Machine houses next to the Swatch Museum and exhibition and seminar rooms, a lounge and a restaurant. The Cité du Temps was renovated in compliance with the prescribed guidelines of the City of Geneva. Today the building fascinates visitors with a unique atmosphere, which comes about through the fusion of historic architecture with modern interiors.

Swatch Art Peace Hotel, Shanghai

Still under construction is the third symbol of the Swatch Group: The historic and famous Peace Hotel in Shanghai, China. After the rehabilitation work carried out under strict guidelines, the Peace Hotel will serve Chinese and international artists as a platform. Thus, the building will be an instrument for cultural exchange between the Swatch Group with China and the world.

Types of business entity International Securities Identification Number Nick Hayek, Jr. Quartz crisis Horology Insolvency Breguet (watch) East Germany Rado (watch) Calvin Klein (fashion designer) Balmain (fashion house) Hamilton Watch Company The Bund Swiss Market Index Actelion Adecco Credit Suisse Geberit Givaudan Holcim Syngenta
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