Luxottica reported record results in fiscal year 2012, with all-time high sales of €7 billion, up 14% year-over-year. Operating income increased 22.3% to over €1 billion. Free cash flow generation exceeded €700 million. Demographic and economic trends in emerging markets and developed countries are fueling long-term expansion in the eyewear industry.
Osisko Gold Royalties Ltd - Corporate Presentation, April 23, 2024
Luxottica, A long way to growth - Investors & Analysts presentation
1. Al
long way to grow
t
Milan,
Milan March 1, 2013
1
2. FORWARD LOOKING STATEMENT
Certain statements in this investor presentation may constitute “forward-looking statements” as defined in the Private
p y g
Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause
actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not
limited to, our ability to manage the effect of the uncertain current global economic conditions on our business, our
ability to successfully acquire new businesses and integrate their operations, our ability to predict future economic
conditions and changes i consumer preferences, our ability t successfully i t d
diti d h in f bilit to f ll introduce and market new products, our
d k t d t
ability to maintain an efficient distribution network, our ability to achieve and manage growth, our ability to negotiate and
maintain favorable license arrangements, the availability of correction alternatives to prescription eyeglasses,
fluctuations in exchange rates, changes in local conditions, our ability to protect our proprietary rights, our ability to
maintain our relationships with host stores, any failure of our information technology, inventory and other asset risk,
a ta ou e at o s ps t ost sto es, a y a u e o ou o at o tec o ogy, e to y a d ot e s ,
credit risk on our accounts, insurance risks, changes in tax laws, as well as other political, economic, legal and
technological factors and other risks and uncertainties described in our filings with the US Securities and Exchange
Commission. These forward-looking statements are made as of the date hereof, and we do not assume any obligation
to update them.
This investor presentation contains measures that were not prepared in accordance with IAS/IFRS. For a
reconciliation of non-IAS/IFRS measures used in these materials, see the Company’s press release titled
“Luxottica completes 2012 with record results” dated February 28, 2013, available on www.luxottica.com
Luxottica results
website under the Investors tab.
3. FY 2012 RECORD RESULTS
Continuing to fuel
C ti i t f l profitable and sustainable growth,
fit bl d t i bl th
backed by a solid balance sheet
› All-time high sales: €7 billion (+14% Y-o-Y)
All time Y o Y)
• Solid North America driven by excellent execution
• Sound Western Europe
• Emerging markets leading the way
• Astonishing execution in Australia
› Strong Group operating leverage: +100bps
• Adj. operating income(1) over €1 billion (+22.3%)
› Breaking another record: free cash flow(1)
g
generation, in excess of €700 million
› Deleveraging continues: net debt/EBITDA(1)(2)
at 1 25x
1.25x
› Dividend proposal of €0.58 vs. €0.49 in 2012
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 3
4. FY 2012 DYNAMIC GROWTH ACROSS GEOGRAPHIES
North America Western Europe Emerging markets
+6% +4%(2) +26%(2)
US$
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 4
6. ALL-TIME HIGH SALES
FY12 4Q12
+13.9% +8.2%
At constant f
t t forex(2) At constant forex(2)
t tf
+7.5% +5.1%
Wholesale at constant forex(2) Wholesale at constant forex(2)
+10.0% +9.0%
Retail comps(3) Retail comps(3)
+5.8% +4.5%
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 6
7. OPERATING INCOME
Showing
Sh i continuous i
ti improvements
t
FY12 Group 4Q12 Group (€ mn)
adjusted(1)(4) (€ mn)
• +90bps @ constant forex(2) • Best margin since 2007
10.0%
14.2%
13.2%
13 2%
164
1,004 9.2%
821
139
FY 2011 FY 2012 4Q 2011 4Q 2012
FY12 Wholesale (€ mn) FY12 Retail
adjusted(1)(4) (€ mn)
• +50bps @ constant forex(2) • Details on slide 11
21.8% 13.3%
• Tecnol dilution 60bps
11.9%
21.5% 604 574
529 449
FY 2011 FY 2012 FY 2011 FY 2012
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 7
8. NON-RECURRING ITEMS IN 2012
Impact on Group Impact on Group
operating income net income
(€ mn) (€ mn)
Australian retail reorganization
-21.7 -15.2
• Restructuring costs related to the reorganization of the optical retail
stores located in Australia and New Zealand (impact on 1Q12)
Extraordinary tax accrual
- -10.0
• Accrual for tax audit of fiscal year 2007
A long way to grow 8
9. STRONG FCF(1) GENERATION DRIVING DELEVERAGE
Strengthening financial profile
St th i fi i l fil
Net debt(1) (€ mn)
Net debt/EBITDA(1) (@ c.fx(2)) from 1.7x to 1.25x,
after:
2.032
• €227 million dividend payment
1.662
• €130 million invested in acquisitions
FY 2011 FY 2012
• Despite increased capex from €307 million to Free cash flow(1) (€ mn)
€365 million
720
496
FY 2011 FY 2012
∆ days Operating working capital (€ mn)
• DSO -2
2
• DSI +7 (inventory build up at year end due to 39
SAP go-live in Italian factories)
-7
• DPO +2
FY 2011 FY 2012
A long way to grow 9
10. RESULTS IN LINE WITH 2012 “RULE OF THUMB”
% growth vs. FY11
(@ current forex) (@ constant forex(2))
)
SALES GROWTH HIGH SINGLE-DIGIT +14% +7%
ADJUSTED OPERATING
INCOME(1)
2x SALES GROWTH +22% +15%
ADJUSTED NET INCOME(1) 2x SALES GROWTH +24% +16%
APPROACHING
NET DEBT/EBITDA(1) 1.4 – 1.5x 1.25x
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 10
11. RETAIL MARGINS EVOLUTION
Solid
S lid margin i
i improvement i 2012
t in
FY 2011 FY 2012 bps
Adjusted retail 11.9% 13.3% +140
US$ from 1.39 to
• Excluding forex - -40bps 1.28
Adjusted retail
j
11.9%
11 9% 12.9%
12 9% +100
@ constant forex(2)
GMO, Tecnol,
• Excluding Latam and
Iberia expansion
+10bps +40bps Sunglass Hut Latam
and Iberia
Adjusted “core” retail
12.0% 13.3% +130
@ constant forex (2)
A long way to grow 11
12. 2013 “RULE OF THUMB”
SALES GROWTH HIGH SINGLE-DIGIT(2)
OPERATING INCOME/
2x SALES GROWTH(2)
NET INCOME
NET DEBT/EBITDA BELOW 1.00x
1 00
Entering 2013:
› Tough comparison with 1Q12 by far the best quarter in 2012
1Q12,
› Unfavorable exchange rate effect vs. 2012
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 12
13. BEHIND THE RULE OF THUMB
Andrea Guerra
A long way to grow 13
14. REVENUE ROADMAP BY GEOGRAPHY
North America Western Europe Emerging markets
olesale(2)
+20-30%
+10-15%
+18% +19%
+15% +15% +4-7%
Who
+6% +3%
2011 2012 2013E 2011 2012 2013E 2011 2012 2013E
2012 includes Tecnol
North America OPSM Australia Emerging markets
+10-15%
+10 15%
Retail(3)
+4-5%
+6-8% +16%
+11%
+6% +10%
+5%
+4%
2011 2012 2013E 2011 2012 2013E 2011 2012 +15
2013E
-18%
Total sales: +76% 2011 & +51% 2012
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
A long way to grow 14
15. 2013 BRAND PORTFOLIO
Further
F th growth ahead
th h d
Premium and Launching
g
Ray-Ban
R B Oakley
O kl
luxury Armani
High i l di it
Hi h single-digit Double-digit
D bl di it growth
th Strong d bl di it
St double-digit Targeting €130
T ti
growth growth; million in sales
recently launched the
Atelier division
A long way to grow 15
17. SECULAR GROWTH DRIVERS
Demographics l di th way, h
D hi leading the heavily supported b mega t d
il t d by trends
DEMOGRAPHICS
PENETRATION
PREMIUMIZATION
EMERGING MARKETS
NEW CHANNELS
GATEWAY &
MEGA CITIES
A long way to grow 17
18. DEMOGRAPHIC CATALYSTS
Under-corrected i d t
U d t d industry
• Growing population
• Ageing population
• Increased need for eye
correction due to behavioral
7.7bn
global changes
population
7bn
7b
global
population
4.8bn
require vision
4.2bn correction
require vision
correction
2.2bn
1.7bn
1 7b vision
vision correction
correction wearers
wearers
2011 2020E
Additional 500 million vision correction wearers by 2020
Source: Industry data and company estimates
A long way to grow 18
19. PENETRATION
Significantly under-penetrated category
Si ifi tl d t t d t
› Developed markets opportunities Market
growth
2020
• Highly fragmented industry
• Still under-educated eyewear consumers
• US sun premium market significantly 2012
below European level
Developed markets optical
› Emerging markets opportunities Developed markets sun
• Increasing standards of living
Emerging markets optical
• Highly under-educated eyewear
consumers Emerging markets sun
Eyewear market
penetration
Eyewear: an industry in its infancy
Source: Industry data and company estimates
A long way to grow 19
20. PREMIUMIZATION
Accessories d i i l
A i driving luxury consumption
ti
› Accessories to outperform the luxury WORLDWIDE LUXURY MARKET CAGR 11-14
industry
› Eyewear undergoing structural €240 bn Total +7-9%
perception changes: from medical Others
+8-9%
€190 bn
devices to fashion accessories
Perfume
• Shortening replacement cycle & cosmetics
+3-5%
• Multiple purchases
Accessories +9-11%
Apparel +5-7%
2011 2014E
Eyewear: the smallest and fastest growing category within accessories
Source: Fondazione Altagamma and company estimates
A long way to grow 20
21. EMERGING MARKETS
The ld
Th golden age h yet t come
has t to
2011 WEIGHT OF EMERGING MARKETS
Different stages of development
across emerging markets
Luxury & consumer goods Eyewear
› Prescription backbone
• Emerging markets lacking 48% 48%
43%
infrastructure 37%
• Under-educated eyewear
19% 16%
consumers
Experiential Fragrances Personal luxury Premium Premium Premium
› Sunglasses a category to luxury skincare sunglass prescription
discover
Eyewear: early stage of development, waiting for the big wave
Source: Industry data and company estimates
A long way to grow 21
22. EMERGING MARKETS
Increased opportunities to capture additional share of wallet
I d t iti t t dditi l h f ll t
THE BIG & FAST GROWING EMERGING MARKETS
Population GDP CAGR
› Driving world 2012 million 2012-2016E
GDP 7.8 LUXOTTICA NEXT
China 1,329
3.7 THREE YEARS
Brazil 195
7.2
CAGR
India 1,220
1 220
› Ri i upper
Rise in +15-20%
15 20%
Turkey 75 4.9
middle class Mexico 115 3.7
consumers
NEW EMERGING MARKETS
Population GDP CAGR
2012 million 2012-2016E
› Proliferation of
Indonesia 248 6.5
luxury stores
Philippines 104 6.0
and rising Vietnam 90 6.5 LUXOTTICA NEXT
consumer 4.8
THREE YEARS
Thailand 69
CAGR
5.2
brand Malaysia 29
+20-30%
Taiwan
a a 23
3 3.5
awareness Andes Region 50 5.3
Russia 143 3.9
Premium eyewear currently a “drop in the ocean”
Source: Industry data and company estimates
A long way to grow 22
23. DEPARTMENT STORES
The i t f f
Th point of reference for premium consumers
f i
SALES/SQM PER CATEGORY
› Sunglasses sales/sqm growing fast
fast,
despite limited space allocation € thousands/sqm
18-30
• Ranking 10th in space allocation per
category vs. 20th three years ago
12-18
13-16
• <1% of department stores sales vs. >25%
for each other category
› Luxottica selling now to over 2,000
4-8
doors, expected to more than double by
2015
› Growth spurt coming from emerging
Sunglass Wholesale Sunglass, directly Perfumes & cosmetics Clothing & apparel
markets managed
% Retail space 0.3-0.5% 1-2% 20-30% 40-50%
allocated
Sun: from seasonal to permanent display in a US$200 billion market
Source: Industry data and company estimates
A long way to grow 23
24. TRAVEL RETAIL, INDULGING WHILE TRAVELING
<1% space allocated t eyewear vs. approx. 50% f perfumes & cosmetics
1% ll t d to for f ti
2005-2010 SALES GROWTH IN TRAVEL RETAIL
200 Sales growth index Sunglasses
(2005 100)
(2005=100)
180
Stationery
160 Beauty
Electronics
Watches
140
Liquors
120
Tobacco
100 2005 = 100
2005 2006 2007 2008 2009 2010
Sun: the fastest growing category in a US$45 billion market
Source: Industry data and company estimates
A long way to grow 24
25. A NEW PLAYING FIELD: GATEWAY & MEGA CITIES
Urbanization, a wealth of opportunities f premium eyewear
U b i ti lth f t iti for i
Amsterdam
London Beijing
Berlin Moscow Tianjin
Zurich Wuhan
Chicago Paris
San Francisco Milan Istanbul
New York City Barcelona Delhi Chongqing Seoul
Las Vegas Chengdu Tokyo
Ahmedabad
Los Angeles
Cairo Dubai Shanghai
Miami
Riyadh Calcutta Hong Kong
Surat
Mexico City Abu Dhabi Yangon Manila
Mumbai
Foshan Shenzhen
Dongguan
Chennai
Ch i Guangzhou
Singapore
Jakarta
Lima
Rio de Janeiro
São Paulo
Mega cities
Gateway cities Buenos Aires Cape Town
Sydney
Source: Industry data and company estimates
A long way to grow 25
26. LUXOTTICA TOP TEN FOCUS CITIES
Population GDP / cap growth
cap.
MEGA CITY 2011 million CAGR / ‘11-17E
Delhi 23 4.6
Mexico C ty
e co City 20.5
05 1.9
LUXOTTICA NEXT 3
Shanghai 20.5 6.4
YEARS CAGR
São Paulo 20 2.6 +30-40%
Mumbai 19.5 4.7
Jakarta 19.5 5.0
GATEWAY CITY
London 13 1.3
New York City 19 1.8
LUXOTTICA NEXT 3
YEARS CAGR
Paris 12 0.6 +15-20%
Los Angeles 13 2.2
Source: Industry data and company estimates
A long way to grow 26
27. SHAPING THE INDUSTRY
External drivers supporting L
E t ldi ti Luxottica’s effective execution on growth engines
tti ’ ff ti ti th i
DEMOGRAPHICS
OPTICAL
PENETRATION
EMERGING MARKETS
PREMIUMIZATION
OAKLEY
EMERGING MARKETS
SUNGLASS HUT
NEW CHANNELS
NORTH AMERICA
GATEWAY AND
MEGA CITIES
A long way to grow 27
29. RELENTLESS OPTICAL EXPANSION
Fueling
F li resilient growth
ili t th
› Demographics and behavioral changes driving
market growth
› Health benefit still overriding emotional benefit
• Only 1/4 of wearers consider optical frames as a
fashion accessory
y
› Luxottica underpenetrated in the optical
segment
t
• 2/3 of global eyewear market is optical vs.1/3 for
Luxottica (based on units sold)
Optical represents an untapped opportunity
A long way to grow 29
30. BUILDING OPTICIANS’ TRUST THROUGH SERVICE EXCELLENCE
A “solution provider” and a partner f opticians
“ l ti id ” d t for ti i
› Strategizing offer and service through organizational evolution
• Dedicated optical department since 2010
• LuxLab: innovative technical solutions to facilitate lens mounting
g
• New “Atelier division” boosting creativity in optical
› Continuing to invest in after-sale services
• More efficient spare parts and repair management through authorized local service centers
- 94% of spare p orders ship within 5 days (
p part p y (86% in 2010)
)
• New on-line back-up support: brand information, shipment tracking and re-orders
Proximity, on time and more connection
A long way to grow 30
31. BUILDING OPTICIANS’ TRUST VIA TARGETED PRODUCT INITIATIVES
Resizing
R i i product strategy and collection architecture
d t t t d ll ti hit t
› More design and development centered on
development-centered
optical collections
• Prada “optical capsule collection”
• Conveying PR messages on optical experience
› Extreme focus on style and fitting
• Stylistic features addressing local trends
• Technical features addressing different fitting
g g
needs in Asia
Comfortably stylish… adapting to our customers’ needs
A long way to grow 31
32. RAY-BAN
First
Fi t ever optical collection dates back to 2003
ti l ll ti d t b k t
› Optical wholesale sales outperforming sun: 100%
1937-2003 Sun
>30% CAGR 2009-2012
• Consolidated consumer-oriented segmentation
offering targeted solutions
25%
70% Optical
› Ray-Ban emerging markets collections with
y g g 2012 75%
dedicated PR and marketing activities since Sun
2010
• Internationally launched styles in 2012: 54% of
which >40% are available with Asian fitting
60-65%
• Local design collections for China, Southeast 35-40% Sun
Asia d India:
A i and I di 46% styles
t l 2016 Optical
- Now launching the first locally designed 30%
collection in Brazil
A long way to grow 32
33. THE RISING WAVE OF
EMERGING MARKETS
Paolo Alberti
A long way to grow 33
34. 2012 DRIVING FORCE, EMERGING MARKETS
Unmatched geographical presence
U t h d hi l
› Leading market position at early stages of
industry development
› Relentless growth in both divisions: +26%(2)
• 13% of Group sales
• B t wholesale performers: B il Chi
Best h l l f Brazil, China,
Eastern Europe, India, Mexico and Turkey
• Latin America sprinting ahead in the retail
division: Sunglass Hut Mexico comps(3) +29%
and GMO comps(3) +9%
Emerging markets approaching 20% of Group sales by 2016
A long way to grow 34
35. LEVERAGING THE BRAZILIAN PLATFORM
Integration completed successfully
I t ti l t d f ll
› 2012 eyewear sales up by 48%(2)
• Brazil already the fourth largest wholesale
market in 2012
› State-of-the-art manufacturing processes
› Boosting international collections &
localized production IMMAGINE
G
• Successful launch of Vogue “Made in Brazil”
› New commercial organization and stronger
supply chain driving further penetration and
improving service level
p g
A long way to grow 35
36. EXPANDING THE BRAZILIAN PLATFORM
“Premiumizing” th eyewear i d t
“P i i i ” the industry
› Doubling eyewear sales over the next five
years
• Attracting fast growing premium customers
• Improving doors segmentation
• Investing to double production capacity by 2015
› Ready for Ray-Ban & Arnette launch in
March and Oakley by year-end
› Profitability enhancer from 2013
The second biggest wholesale market by 2015
A long way to grow 36
37. SURFING THE RISING WAVE OF EMERGING MARKETS
India: further
I di f th consolidating our presence
lid ti
› Early entrance helped build a solid market share
• Ray-Ban brand awareness is among the highest in the
world
› Doubling production capacity for Ray-Ban and
Vogue Indian collections
g
› 2013-2016 expected wholesale sales growth at
>20% CAGR
• Sales CAGR in past three years: >30%
› Sunglass Hut expansion continuing: now 40
stores, one in every premium mall
A long way to grow 37
38. SURFING THE RISING WAVE OF EMERGING MARKETS
Southeast Asia: th next emerging markets to tackle
S th t A i the t i k t t t kl
› Leveraging Singapore hub to further
expand the business
› Wholesale sales +30% CAGR in the
last four years Vietnam
Taiwan
› Accelerating investments Thailand
Philippines
• Planning direct presence in Indonesia
Malaysia
y
and Th il d
d Thailand
• Accelerating Malaysia, Vietnam and
Philippines Indonesia
Sales expected to double by 2015
A long way to grow 38
39. SURFING THE RISING WAVE OF EMERGING MARKETS
China: h i ht i l
Chi heightening local execution
l ti
› A recognized leader in the premium
segment
• Wholesale sales almost doubled yearly since
2010
- Sales expected to grow at >40% CAGR in
the next three years
- China to become #10 market by 2014
› Consolidating optical retail excellence in
China
• Adding approx. 40 LensCrafters stores
› Expanding production capacity
• Building a new 37,000sqm production site
A long way to grow 39
41. 2012 HIGHLIGHTS
› Another year of double-digit growth
› Maintaining Oakley’s strong brand
momentum
• Olympics increased brand visibility and
awareness
• Unified & global brand campaign launch:
Beyond R
B d Reason
• Powerhouse of global and regional athletes
A long way to grow 41
42. 2013 AND BEYOND: DOUBLE-DIGIT OPPORTUNITIES
Balanced growth across products and regions
B l d th d t d i
OPTICAL
WOMEN
EUROPE
EMERGING MARKETS
A long way to grow 42
43. OPTICAL: A WORLD OF OPPORTUNITIES
A very l
long-term strategic focus
t t t i f
› 4th year in a row of double digit growth
double-digit
• Crosslink: successfully created a new sport optical
segment for men
› Created best-in-class service around
revolutionary ideas
› Elevating in store experience through training
• Oakley destinations with frame boards, improved
assortments and merchandising
• Improving sales tools
› New product innovations on the way
Doubling optical sales in three years
A long way to grow 43
44. EXPLORING THE WOMAN’S WORLD
Beautifully b l
B tif ll balancing style and performance
i t l d f
› Fast growing opportunity
› Building momentum in key North American
regions
› Growing strategic partnerships to drive in-
in
store presence & brand awareness
• New destination areas within O stores
• Launching exclusive products with Sunglass Hut Kerri Walsh,
Beach Volleyball
• Targeted advertising campaigns within key
regions
Expanding segment
A long way to grow 44
45. ENSURING SUSTAINABLE AND PROFITABLE GROWTH IN EUROPE
Building
B ildi momentum
t
› In 2012, brand awareness up 4 10% across
2012 4-10%
Europe
› Invest in the brand with simple and
compelling stories & point of sales
improvements
• Create consistent consumer experiences across
p
touch points
• Gain valuable retail space at point of sales
• F
Focus on store staff training
t t ff t i i
› Strengthen position in eyewear and goggles
› Grow within selective distribution channels
Expecting double digit growth in Europe between 2013-2015
A long way to grow 45
46. DEVELOPING BRAND STRENGTH IN EUROPE
Continue t engage and b ild relationships with consumers
C ti to d build l ti hi ith
Active lifestyle sun/optical Sport performance sun/optical Snow goggles
A long way to grow 46
47. THE EMERGING MARKETS FIELD
Establishing localized strategies
E t bli hi l li d t t i
› Emerging markets currently
represent approx. 12% of Oakley’s
sales
› Strengthening presence in China,
India, South Korea and Brazil
• Continue to develop brand awareness
and positioning
• Deliver top performing Oakley styles with
Asian fit
• Strengthening focus in optics in Brazil
Asian business to double in three years
A long way to grow 47
48. DESIGN & INNOVATION TO SUPPORT NEW PRODUCT RELEASES
Always at the forefront in sport & performance
Al t th f f t i t f
› Balance of iconic and casual styles
› New materials & techniques: carbon fiber,
titanium hi
tit i hinges, aluminum
l i
› Line extensions that reach new customers
› Styleswitch – first lifestyle product with
Switchlock technology
› Crosslink Switch – interchangeable lens
carrier technology
› Lens storytelling for different environments
A long way to grow 48
49. DIGITAL INNOVATION REINVENTS SNOW EXPERIENCE
Oakley i
O kl airwave snow goggle
l
› Airwave snow goggle with heads up display
heads-up
integrates the following technologies:
• Bluetooth connectivity
• GPS
• Resort mapping
• Buddy tracking
• Onboard apps
• Apple iPhones and Android operating system smart
phones capabilities - caller ID and text messaging
A long way to grow 49
51. CELEBRATING ANOTHER YEAR OF GLOBAL GROWTH
Sunglass H t “th sun experience”
S l Hut “the i ”
› €1 billion sales (+12 8% at constant forex(2))
(+12.8%
• Worldwide comps(3): +9.8%
• North American comps(3): +10.1%, double-digit g
p g growth for the
third consecutive year
• Conversion driving volumes and mix driving AUR
› Strong improvement in profitability
› Global expansion moving ahead
• Strengthening in the sunbelt
• Entrance in Spain & Portugal
A long way to grow 51
52. GLOBAL LEADING RETAIL BRAND
Winning through enhanced S
Wi i th h h d Sunglass H t experience
l Hut i
› Sunglass Hut sells FEEL GOOD!
• It’s all about delighting consumers
• Brands celebration and training
› Strong & effective organization
and operating model
• Global “360° SunglassHutization”
with a local touch
› Working on digital convergence
• E-com
• Omni-channel
• Storytelling
A long way to grow 52
53. GLOBAL GROWTH IS UNDERWAY
On t k t
O track to manage 4,000 stores b 2015
4 000 t by
› Strengthening penetration in the sunbelt
• Focus on Mexico, Brazil and India
• New channels: E-com, department stores, travel retail
› The next frontier for expansion: Latam, Southern Europe, Asia
Turkey
Iberia
Mexico
India
Middle East
Brazil
Targeting €2 billion sales by 2016
A long way to grow 53
54. WINNING IN MEXICO
› The biggest sun chain
• Approx. 90 stores in 20 cities
• Good presence in airports and tourist areas
• +29% comps(3) in 2012
• North America “halo” effect on the brand
› +40% sales CAGR by 2015, highly
p
profitable
› Adding 100 stores by 2015
• Exploring department store channel
A long way to grow 54
55. WINNING IN BRAZIL
Getting
G tti ready for upcoming FIFA World Cup and Ol
d f i W ld C d Olympics
i
› Greenfield start up
• Over 20 stores opened in 15 months
› Store network
• Expecting to double store network in 2013
• Reaching 5-6x of current level by 2016
• Sales to accelerate exponentially
• Exploring franchising model
A long way to grow 55
56. WINNING IN INDIA
› Strong franchising partnership
• 40 stores in 17 cities, including Mumbai, Delhi
and Kolkata
› +30% CAGR sales by 2015
› 100 stores by 2015
• Exploring department store and mall expansion
• Soon opening flagship store in Delhi
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58. LEVERAGING A UNIQUE MIX OF ASSETS IN 2012
More synergies t come
M i to
› Solid sales growth in North America: +6%
in US$(1)
• Strong sales growth in wholesale : +15% in
US$(1)
• Total North America retail comps(3): +6%
› Synergizing wholesale and retail activities
› Evolving retail organization
• New leadership at Retail Optical North America
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59. NORTH AMERICA: DRIVING CATEGORY GROWTH
Focusing on customers & consumers through even stronger collaboration
F i t th h t ll b ti
RONA
Lux US
Wholesale
Lab
Network
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60. INVESTING IN BRAND EXPERIENCE @ LensCrafters
LensCrafters will continue t elevate th b d i 2013
L C ft ill ti to l t the brand in
…more emotional …celebrity …vibrant …a greater …lens
imagery… endorsement… storytelling... focus on sun… leadership
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61. LENSCRAFTERS
Amplifying
A lif i our connection with customers via enabling i t
ti ith t i bli in-store technology
t h l
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62. 2013 AND BEYOND
Winning in the
Wi i i th marketplace
k t l
“Luxottica expects sustainable sales growth
& ongoing margin i
i i improvement
t
by leveraging the industry’s strong secular drivers
through effective execution of growth engines”
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63. ONESIGHT
OneSight is an independent nonprofit organization providing sustainable access to
quality vision care and eyewear in underserved communities worldwide.
Since 1988, OneSight has given the gift of sight to more than eight million people in 37
countries and has granted millions to fund optical research and education.
Thanks to generous annual operating support and skilled volunteers from Luxottica,
public donations to OneSight directly fund programs to provide healthy vision for millions
more in need.
2012 results
Vision care programs
-S
Served 243 108 adults and children th
d 243,108 d lt d hild through more th 90 vision clinics and community
h than i i li i d it
Learning to read becomes possible for this first-
programs across 6 continents grader after receiving his first eye exam and pair
Research foundation of glasses at the OneSight Vision Center at
- Awarded 2012 research grants totaling US$232,500 Oyler School.
- Awarded US$40 000 to students pursuing degrees in optometry through the Dr Stanley
US$40,000 Dr. Students who see better, learn better. Yet one in
better better
Pearle Scholarship Fund four students has an undiagnosed vision
problem.
Sustainable development initiatives That’s why OneSight is pioneering a new school-
In October 2012, the OneSight Vision Center at Oyler School opened as the first self- based vision care model in one of the most
sustaining school-based vision care program in the United States. Located within a impoverished schools in the United States. The
OneSight Vision Center t Oyler School ill
O Si ht Vi i C t at O l S h l will
school environment, this full-service vision center will provide 3,000 students annually
provide 3,000 students with access to
with access to comprehensive eye exams, glasses, fittings and adjustments. OneSight is comprehensive vision care annually.
partnering with the American Optometric Association to evaluate expansion potential of
this new model to address the severe gap in vision care for students in underprivileged
iti
communities.
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65. NOTES ON THE PRESENTATION
› 1 Net debt/EBITDA, net debt/adjusted EBITDA, net
, j , › 3 Comparable
p store sales reflects the change in sales
g
debt, EBITDA, adjusted EBITDA, adjusted operating from one period to another that, for comparison
income, adjusted operating margin, adjusted net purposes, includes in the calculation only stores
income, adjusted earnings per share and free cash flow open in the more recent period that also were open
are not measures in accordance with IAS/IFRS. For during the comparable prior period, and applies to
additional disclosure see the press release titled both periods the average exchange rate for the prior
“Luxottica completes 2012 with record results” dated period and the same geographic area. Commencing
February 28, 2013 available at www.luxottica.com 2Q12, retail comparable store sales exclude Pearle
website under the Investors tab. Vision results which are separately reported. See
“retail
“ t il comparable store sales” i l d d i thi
bl t l ” included in this
› 2 Figures at constant exchange rates are calculated appendix.
using the average exchange rates in effect during the
› 4 Excluding non recurring items
corresponding period of the previous year. Please refer
to the “ “Major currencies” table in the press release
”
› 5 Equals interest income minus interest expenses
titled “Luxottica completes 2012 with record results”
dated February 28, 2013 available at
www.luxottica.com website under the Investors tab. › 6Equals extraordinary income minus extraordinary
expenses
› 7Net debt figures are calculated using the average
exchange rates used to calculate EBITDA figures
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66. WHOLESALE SALES BREAKDOWN
WHOLESALE SALES BREAKDOWN FOR 4Q12 WHOLESALE SALES BREAKDOWN FOR FY12
Wholesale sales: +9.0%(2) Wholesale sales: +10.0%(2)
(Sales breakdown by region, 4Q12)(2) (Sales breakdown by region, FY12)(2)
RoW Western RoW Western Europe
13% 37% Europe 12% 40%
Emerging Emerging 23%
markets 26% markets
24%
North America 25%
North America
YoY changes by region, 4Q12(2) YoY changes by region, FY12(2)
Western Europe +5% Western Europe +3%
North America +5% North America +15%
Emerging markets +19% Emerging markets +19%
RoW +11% RoW +9%
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67. RETAIL COMPARABLE STORE SALES(3)
4Q12 FY12
Optical North America
• LensCrafters +0.8% +2.4%
• Licensed Brands +0.8% +3.8%
Optical Australia/New Zealand +6.6% +6.3%
Sunglass Hut worldwide +10.0% +9.8%
Group Retail +4.5%
+4 5% +5.8%
+5 8%
• Pearle Vision total system sales
-3.9% -1.9%
(Business plan changed from corporate stores to franchising model)
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68. NET DEBT(1) EVOLUTION
2,500 ∆ Net debt(1) €370 million
(2,032) + 1,476
2,000
(130) (1,669) 7 (1,662)
(227)
1,500
(266) (6)
(119)
1,000 (365)
500
FCF €720 million
0
Dec. 31, 2011 Operating cash Capex Financial Taxes paid Extraordinary Dividends Acquisitions + Dec. 31, 2012 Translation adj Dec. 31, 2012
flow excl. capex charges reserve Other excl. Translation
adj.
For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix
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69. FY 2012 DEBT OVERVIEW
Dec. 31, Dec. 31,
FY 2011 FY 2012 ∆
2011 2012
Adj. EBITDA(1)
j 1,136
, 1,362
, Net US$ debt(1)
$ ( ,
(1,481)
) (
(814)
) 667
∆ working capital 13 114 Net € debt(1) (887) (1.045) (158)
Capex (307) (365) Translation adj. 7
Operating cash € 1 = US$ 1.2939 1.3194
842 1,111
flow
Financial charges(5) (109) (119) Net debt (€) (2,032) (1,662) 370
Taxes paid (229) (266) Net debt/adj.
1.8x 1.2x
EBITDA(1)(4)
Extraordinary Net debt/adj.
(8) (6)
charges(6) EBITDA excluding
1.7x 1.2x
Free cash flow(1) exchange rate
h t
496 720 effect(1)(4)(7)
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70. Investor Relations team
Alessandra Senici
Tel. +39 (02) 8633 - 4662
alessandra.senici@luxottica.com
Nicoletta R
Ni l tt Russo
Tel. +39 (02) 8633 - 4718
nicoletta.russo@luxottica.com
Elena Dimichino
Tel. +39 (02) 8633 - 4038
elena.dimichino@luxottica.com
Elisa Cattaruzza
Tel. +39 (02) 8633 - 4870
elisa.cattaruzza@luxottica.com
@
www.luxottica.com
www luxottica com
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