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3Q 2013 results
Milan, October 29, 2013
FORWARD LOOKING STATEMENTS

Certain statements in this investor presentation may constitute “forward-looking statements” as defined in the Private
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 in consumer preferences, our ability to successfully introduce and market new products, our
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,
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’s third quarter results confirm solid growth” dated October 29, 2013, available on the company’s
website www.luxottica.com under the Investors tab.

3Q 2013 results

2
3Q 2013, CONTINUING SUSTAINED GROWTH
On track to meet full year objectives
› Group sales up by 7.4% at constant forex(1) piling on top of past
three years of solid growth
• Wholesale confirming strong momentum: +13% at constant forex(1)
-

Healthy North America: +9% in US$ excluding Oakley military
business

-

Sun sparkled in Western Europe: +15% at constant forex(1)

-

Emerging markets: +20% at constant forex(1)

• Retail sales up by 4.2% at constant forex(1)
-

Strong Sunglass Hut worldwide sales: +11% at constant
forex(1)

-

LensCrafters flat comps, strong profitability

› Solid Group operating leverage: +50bps reported, +140bps at
constant forex(1)
› Record free cash flow generation(3): €295 million
• Net debt/EBITDA(3): 1.1x, the lowest in almost 20 years

Entering 4Q with a solid portfolio order and well planned initiatives for the Christmas season
For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

3
9M 2013 CONSISTENT GROUP SALES GROWTH

North America

+3%

Europe

+11%(1)

Emerging markets

+20%(1)

US$

Mediterranean

Continental

+5%(1)

+14%(1)

Eastern
+21%(1)

For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix. Sales performance includes wholesale and retail.

3Q 2013 results

4
3Q 2013 HEALTHY GROUP SALES GROWTH
Rock-solid performance in Europe

North America

Europe

Emerging markets

+2%

+19%(1)

+20%(1)

US$

Mediterranean

Continental

+13%(1)

+21%(1)

Eastern
+24%(1)

For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix. Sales performance includes wholesale and retail.

3Q 2013 results

5
CURRENCY EVOLUTION

∆ vs. Euro

1Q
2013 vs. 2012

2Q
2013 vs. 2012

3Q
2013 vs. 2012

US Dollar

-0.7%

-1.9%

-5.6%

Australian Dollar

-2.2%

-3.7%

-16.8%

Brazilian Real

-12.1%

-6.7%

-16.3%

Chinese Renminbi

+0.6%

+0.9%

-2.1%

Japanese Yen

-14.6%

-20.4%

-25.0%

+15
-18%

3Q 2013 results

6
CURRENCY IMPACT ON SALES
1Q 2013

2Q 2013

3Q 2013

Net sales (constant forex(1))

+5.6%

+9.4%

+7.4%

US Dollar

-0.4%

-1.0%

-3.5%

Australian Dollar

-0.2%

-0.3%

-1.5%

Brazilian Real

-0.4%

-0.2%

-0.6%

-

-

-

Japanese Yen

-0.2%

-0.5%

-0.6%

Other

-0.1%

-0.3%

-1.2%

Chinese Renminbi

+15
-18%

Net sales (current forex)

+4.2%

+7.2%

+0.1%

For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

7
SOLID SALES PERFORMANCE, CURRENCY HEADWINDS

3Q13

9M13

+0.1%

+3.9%

At constant forex(1)

At constant forex(1)

+7.4%

+7.5%

Wholesale at constant forex(1)

Wholesale at constant forex(1)

+13.1%

+12.1%

Retail comps(2)

Retail comps(2)

+2.5%

+3.5%

For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

8
CONTINUED IMPROVEMENT IN OPERATING INCOME(3)(4)
Group (€ mn)

14.3%
13.8%

255

Group (€ mn)
@ c. fx.(1)

15.2%

+110bps
@ c. fx.(1)

901

831

246
3Q 2012

15.9%

+140bps

3Q 2013

9M 2012*

9M 2013*

*Adjusted 9M2012 and 9M2013 operating income(3)(4)

Wholesale (€ mn)

Wholesale (€ mn)

19.5%
19.3%

+140bps

134

@ c. fx.(1)

125

3Q 2012

24.0%
23.4%

+110bps

564

@ c. fx.(1)

505

3Q 2013

9M 2012

9M 2013*

*Adjusted 9M2013 operating income(3)(4)

Retail (€ mn)

14.6%

15.0%

166

165

3Q 2012

3Q 2013

Retail (€ mn)

+90bps
@ c. fx.(1)

14.0%

14.4%

+70bps

477

@ c. fx.(1)

461
9M 2012*

9M 2013

*Adjusted 9M2012 operating income(3)(4)
For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

9
DELIVERING SOLID NET INCOME(3)(4)
Net income (€ mn)

8.3%
7.7%

148

Net income (€ mn)
+24.2% @ c.fx.(1)

137
3Q 2012

9.3%

+7.9%
8.7%

+10.5%
+18.0% @ c.fx.(1)

525

475
3Q 2013

9M 2012*

9M 2013*

*Adjusted 9M 2012 and 9M 2013 net income(3)(4)

EPS (€ cents)

EPS (€ cents)

+6.2%

+8.8%

31

111

29

3Q 2012

102

3Q 2013

9M 2012*

9M 2013*

*Adjusted 9M 2012 and 9M 2013 EPS

EPS (US$ cents)

41
37
3Q 2012

EPS (US$ cents)

+12.5%

+11.8%

146
131

3Q 2013

9M 2012*

9M 2013*

*Adjusted 9M 2012 and 9M 2013 EPS
For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

10
DEBT OVERVIEW

Further reduction in Net debt/EBITDA(3) (@ c.fx.(1))
to 1.1x, the lowest in almost 20 years

Net debt(3) (€ mn)
1,886
1,572

2Q 2013

Reflects higher profitability and effective working

3Q 2013

Free cash flow(3) (€ mn)

capital control
271

3Q 2012

295

3Q 2013

Operating working capital (€ mn)

∆ days
• DSO

-4

• DSI

+1

• DPO

-2

123
69
3Q 2012

3Q 2013

For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

11
9M 2013 RESULTS IN LINE WITH 2013 “RULE OF THUMB”

% growth vs. 9M12
(@ constant forex(1))

% growth vs. 9M12
(@ current forex)

SALES GROWTH

HIGH SINGLE-DIGIT

+8%

+4%

ADJ. OPERATING INCOME(3)(4)

2x SALES GROWTH

+15%

+8%

ADJ. NET INCOME(3)(4)

2x SALES GROWTH

+18%

+11%

NET DEBT/EBITDA(3)

BELOW
1.00x

1.1x

For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix

3Q 2013 results

12
9M 2013 REVENUE ROADMAP BY GEOGRAPHY

Wholesale(1)

North America

Western Europe

Emerging markets

+12% excl.
Oakley military

+18%

+19%
+10-15%

+21%

+20-30%

+8%

+7%

+4-7%
+2%

9M 2012 9M 2013

2013E

North America

9M 2012 9M 2013

2013E

OPSM Australia

9M 2012 9M 2013

2013E

Emerging markets

Retail(2)

+14%
+10%

+10%
+6%

+4-5%

+7%

+10-15%

+6-8%

+2%
9M 2012 9M 2013

2013E

9M 2012 9M 2013

2013E

9M 2012 9M 2013

+15
2013E
-18%

For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix

3Q 2013 results

13
3Q 2013 NORTH AMERICA
A structurally growing market
› Wholesale sales +2.3% in US$, +8.8%
excluding Oakley military business
• Strong momentum across all brands but budget
sequestration affecting Oakley sales to the US
Army

› Retail comps(2): +1.2%
• Robust Sunglass Hut comps(2) +6.3%
- Enhancing in-store experience with digital
tools and constant flow of beautiful
sunglasses
• LensCrafters flat comps(2), nevertheless delivering
strong profitability growth
- Successfully testing digital eye exams to
transform customer experience

3Q 2013 results

14
3Q 2013 EUROPE
Accelerated growth, leveraging the strong sun season

› Solid sales across Europe, outperforming
expectations

› Continental Europe, strong momentum
persists: +21%
• Germany, France and Nordics leading the way

› Mediterranean Europe sun shines: +13%
• Italy +9%, Spain +19% with Sunglass Hut posting
double-digit comps

3Q 2013 results

15
3Q 2013 EMERGING MARKETS
Catching the wave

› Brazil, China, India and Turkey growing
over 20% at constant forex(1)
• Boosting “Made in Brazil” collections
- Brazil now the biggest market for Vogue
- Local Ray-Ban, both sun and
prescription, available in stores
• China
- Wholesale sales doubled YoY
- Consistent double-digit growth in comps
• Started direct wholesale distribution in
Thailand

3Q 2013 results

16
PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014
Building on growth engines – brand portfolio

› Ray-Ban, expecting solid high single-digit
sales growth
• Further enhancing the optical collection
• Boosting emerging markets penetration
• ray-ban.com going global

› Oakley, again targeting double-digit sales
growth
• Strengthening optical business through Oakley True
Digital Edge™
• Further investing in design and innovation to support
sport/performance leadership

› Armani targeting a year of strong growth: over
€160 million sales
› Atelier: integration completed, new structure up
and running

Constantly shaping the brand portfolio
3Q 2013 results

17
PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014
Building on growth engines – wholesale

› “The Luxottica way": a proactive client-oriented service to win in the market place
• Customer: profiling, segmentation and dedicated events
- MyLuxottica.com, an innovative platform for the ultimate daily relationship with clients

2014

• Product: enhanced storytelling and training with digital tools

Partnership in
assortment
definition and
supply services

Direct dialogue
with final
consumers

Traditional
wholesale

STARS

E-commerce

Third-party
distributors

Key accounts
Top accounts

Traditional
commercial model

2009

Europe leading in innovation and benefiting the most
3Q 2013 results

18
PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014
Building on growth engines – retail
› LensCrafters and OPSM, leading innovation
and technology in optical retail
• Personalizing patient/customer experience
- LensCrafters : AccuExam in 170 stores by the
end of 2014, associate iPads in all stores
- OPSM: AccuFit in all stores, launch of Eye
Check app
• Omni channel delivering a seamless, easy and
interactive experience
- CRM segmentation, offering the right service
and products to the right client

› Sunglass Hut, shaping the sun industry
- Going digital
- Global journey continues, focusing more and
more on mega and gateway cities, eyes on
travel retail and department stores
- “Opening one store per day“ mindset

3Q 2013 results

19
PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014
Building on growth engines – emerging markets

› Relentless growth in emerging markets
• Brazil to become the second biggest wholesale
market, driving wholesale profitability
• China
- On track to become the #10 wholesale market
- Consolidating optical retail excellence, adding
50 new stores
• Accelerating investments in new markets
- Thailand, Russia, Indonesia and Malaysia

› Boosting presence in 12 mega and gateway
cities
• From North America to Latin America and SouthEast Asia

3Q 2013 results

20
OneSight is a public nonprofit organization providing sustainable access to quality
vision care and eyewear in underserved communities worldwide. Since 1988,
OneSight has engaged thousands of skilled volunteers across Luxottica and other
industry partners to hand-deliver the gift of sight to 8.4 million people in 40 countries.

3Q 2013 RESULTS
Vision care programs
OneSight helped 24,594 people through 5 vision clinics and community outreach
programs in China, Mexico, South Africa and North America.

Sustainable development initiatives
In April, OneSight launched a new community-based model to provide sustainable
access to affordable, quality vision care in The Gambia. This small country in West
Africa previously had 1 optometrist to serve a population of 1.8 million people.
In the first six months of the pilot, 2,468 patients visited the vision center for eye
exams, and 40% of the local population is now aware of the new vision center
located in Farafenni regional hospital.

Volunteers worked hard to find the perfect pair
of eyewear for a young boy who had never
worn glasses. Incredibly farsighted, he relied
on his younger brother to help him through the
clinic.
After receiving his glasses he read the eye
chart with a huge smile on his face. Volunteers
were amazed at the immediate change as he
went from shy and quiet to happy and
confident.
- 2013 South Africa OneSight Vision Clinic

Based on the pilot programe, OneSight will refine and replicate this model across 7
locations in The Gambia to serve the vision care needs of the entire population. This
model will also be scaled to support sustainable vision care initiatives in other
developing countries.

3Q 2013 results

21
APPENDIX

3Q 2013 results

22
NOTES TO THE PRESENTATION

›

1

›

2

Figures at constant exchange rates are calculated
using the average exchange rates in effect during the
corresponding period of the previous year. Please refer
to the “Major currencies” table in the press release
titled “Luxottica’s third quarter results confirm solid
growth” dated October 29, 2013 available at the
www.luxottica.com website under the Investors tab.
Comparable store sales reflect the change in sales
from one period to another that, for comparison
purposes, includes in the calculation only stores open
in the more recent period that also were open during
the comparable prior period, and applies to both
periods the average exchange rate for the prior period
and the same geographic area. Commencing 2Q12,
retail comparable store sales exclude Pearle Vision
results. See “retail comparable store sales” included in
this appendix.

›

3

›

4 Excluding

›

5

›

6

›

7

Net debt/EBITDA, net debt/adjusted EBITDA, net
debt, EBITDA, adjusted EBITDA, adjusted operating
income, adjusted operating margin, adjusted net
income, adjusted earnings per share and free cash
flow are not measures in accordance with IAS/IFRS.
For additional disclosure see the press release titled
“Luxottica’s third quarter results confirm solid growth”
dated October 29, 2013 available at the
www.luxottica.com website under the Investors tab.
non-recurring items

Equals interest income minus interest expenses

Equals extraordinary income minus extraordinary
expenses
Net debt figures are calculated using the average
exchange rates used to calculate EBITDA figures

3Q 2013 results

23
WHOLESALE SALES BREAKDOWN
WHOLESALE SALES BREAKDOWN FOR 3Q13

WHOLESALE SALES BREAKDOWN FOR 9M13

Wholesale sales: +13.1%(1)

Wholesale sales: +12.1%(1)

(Sales breakdown by region, 3Q13)(1)

(Sales breakdown by region, 9M13)(1)

RoW
35%

15%

Emerging
markets

Western
Europe

RoW
13%

Emerging
markets

22%
28%

Western Europe
38%

23%
26%

North America

North America

YoY changes by region, 3Q13(1)

YoY changes by region, 9M13(1)

Western Europe

Western Europe

+8%

North America

+7%

North America

+15%
+2%

+9% excl.
Oakley military

Emerging markets

+20%

Emerging markets

+21%

RoW

+23%

RoW

+12% excl.
Oakley military

+23%

3Q 2013 results

24
RETAIL COMPARABLE STORE SALES(2)

3Q13

9M13

• LensCrafters

+0.1%

+1.7%

• Licensed brands

-7.1%

-3.6%

Optical Australia/New Zealand

+2.5%

+5.6%

Sunglass Hut worldwide

+7.5%

+7.2%

Group retail

+2.5%

+3.5%

Optical North America

3Q 2013 results

25
3Q 2013 DEBT OVERVIEW

3Q 2012

June 30,
2013

3Q 2013

Sept 30,
2013

339

347

Net US$ debt(3)

88

122

Net € debt(3)

Capex

(79)

(81)

Translation adj.

Operating cash
flow

348

388

€ 1 = US$

1.3080

1.3505

Financial charges(5)

(30)

(22)

Net debt (€)

(1,886)

(1,572)

Taxes paid

(44)

(71)

1.3x

1.1x

(3)

-

Net debt/
EBITDA(3)
Net debt/EBITDA
excluding
exchange rate
effect(3)(7)

1.3x

∆

1.1x

EBITDA(3)
∆ working capital

Extraordinary
charges(6)
Free cash flow(3)

271

295

(832)

(644)

188

(1,250)

(1,095)

155
8

3Q 2013 results

314

26
INVESTOR RELATIONS TEAM

Alessandra Senici
Tel. +39 (02) 8633 - 4662
alessandra.senici@luxottica.com
Nicoletta 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
3Q 2013 results

27
SOCIAL MEDIA CONTACTS
http://www.luxottica.com
@Luxottica
Like our LuxotticaGroup page
youtube.com/luxotticagroup
LinkedIn.com/company/Luxottica_Group
pinterest.com/Luxotticagroup
instagram.comLuxotticagroup
slideshare.netLuxotticaGroup
google.com/+luxottica

3Q 2013 results

28

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Luxottica 3 q13 results presentation

  • 1. 3Q 2013 results Milan, October 29, 2013
  • 2. FORWARD LOOKING STATEMENTS Certain statements in this investor presentation may constitute “forward-looking statements” as defined in the Private 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 in consumer preferences, our ability to successfully introduce and market new products, our 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, 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’s third quarter results confirm solid growth” dated October 29, 2013, available on the company’s website www.luxottica.com under the Investors tab. 3Q 2013 results 2
  • 3. 3Q 2013, CONTINUING SUSTAINED GROWTH On track to meet full year objectives › Group sales up by 7.4% at constant forex(1) piling on top of past three years of solid growth • Wholesale confirming strong momentum: +13% at constant forex(1) - Healthy North America: +9% in US$ excluding Oakley military business - Sun sparkled in Western Europe: +15% at constant forex(1) - Emerging markets: +20% at constant forex(1) • Retail sales up by 4.2% at constant forex(1) - Strong Sunglass Hut worldwide sales: +11% at constant forex(1) - LensCrafters flat comps, strong profitability › Solid Group operating leverage: +50bps reported, +140bps at constant forex(1) › Record free cash flow generation(3): €295 million • Net debt/EBITDA(3): 1.1x, the lowest in almost 20 years Entering 4Q with a solid portfolio order and well planned initiatives for the Christmas season For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 3
  • 4. 9M 2013 CONSISTENT GROUP SALES GROWTH North America +3% Europe +11%(1) Emerging markets +20%(1) US$ Mediterranean Continental +5%(1) +14%(1) Eastern +21%(1) For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix. Sales performance includes wholesale and retail. 3Q 2013 results 4
  • 5. 3Q 2013 HEALTHY GROUP SALES GROWTH Rock-solid performance in Europe North America Europe Emerging markets +2% +19%(1) +20%(1) US$ Mediterranean Continental +13%(1) +21%(1) Eastern +24%(1) For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix. Sales performance includes wholesale and retail. 3Q 2013 results 5
  • 6. CURRENCY EVOLUTION ∆ vs. Euro 1Q 2013 vs. 2012 2Q 2013 vs. 2012 3Q 2013 vs. 2012 US Dollar -0.7% -1.9% -5.6% Australian Dollar -2.2% -3.7% -16.8% Brazilian Real -12.1% -6.7% -16.3% Chinese Renminbi +0.6% +0.9% -2.1% Japanese Yen -14.6% -20.4% -25.0% +15 -18% 3Q 2013 results 6
  • 7. CURRENCY IMPACT ON SALES 1Q 2013 2Q 2013 3Q 2013 Net sales (constant forex(1)) +5.6% +9.4% +7.4% US Dollar -0.4% -1.0% -3.5% Australian Dollar -0.2% -0.3% -1.5% Brazilian Real -0.4% -0.2% -0.6% - - - Japanese Yen -0.2% -0.5% -0.6% Other -0.1% -0.3% -1.2% Chinese Renminbi +15 -18% Net sales (current forex) +4.2% +7.2% +0.1% For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 7
  • 8. SOLID SALES PERFORMANCE, CURRENCY HEADWINDS 3Q13 9M13 +0.1% +3.9% At constant forex(1) At constant forex(1) +7.4% +7.5% Wholesale at constant forex(1) Wholesale at constant forex(1) +13.1% +12.1% Retail comps(2) Retail comps(2) +2.5% +3.5% For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 8
  • 9. CONTINUED IMPROVEMENT IN OPERATING INCOME(3)(4) Group (€ mn) 14.3% 13.8% 255 Group (€ mn) @ c. fx.(1) 15.2% +110bps @ c. fx.(1) 901 831 246 3Q 2012 15.9% +140bps 3Q 2013 9M 2012* 9M 2013* *Adjusted 9M2012 and 9M2013 operating income(3)(4) Wholesale (€ mn) Wholesale (€ mn) 19.5% 19.3% +140bps 134 @ c. fx.(1) 125 3Q 2012 24.0% 23.4% +110bps 564 @ c. fx.(1) 505 3Q 2013 9M 2012 9M 2013* *Adjusted 9M2013 operating income(3)(4) Retail (€ mn) 14.6% 15.0% 166 165 3Q 2012 3Q 2013 Retail (€ mn) +90bps @ c. fx.(1) 14.0% 14.4% +70bps 477 @ c. fx.(1) 461 9M 2012* 9M 2013 *Adjusted 9M2012 operating income(3)(4) For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 9
  • 10. DELIVERING SOLID NET INCOME(3)(4) Net income (€ mn) 8.3% 7.7% 148 Net income (€ mn) +24.2% @ c.fx.(1) 137 3Q 2012 9.3% +7.9% 8.7% +10.5% +18.0% @ c.fx.(1) 525 475 3Q 2013 9M 2012* 9M 2013* *Adjusted 9M 2012 and 9M 2013 net income(3)(4) EPS (€ cents) EPS (€ cents) +6.2% +8.8% 31 111 29 3Q 2012 102 3Q 2013 9M 2012* 9M 2013* *Adjusted 9M 2012 and 9M 2013 EPS EPS (US$ cents) 41 37 3Q 2012 EPS (US$ cents) +12.5% +11.8% 146 131 3Q 2013 9M 2012* 9M 2013* *Adjusted 9M 2012 and 9M 2013 EPS For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 10
  • 11. DEBT OVERVIEW Further reduction in Net debt/EBITDA(3) (@ c.fx.(1)) to 1.1x, the lowest in almost 20 years Net debt(3) (€ mn) 1,886 1,572 2Q 2013 Reflects higher profitability and effective working 3Q 2013 Free cash flow(3) (€ mn) capital control 271 3Q 2012 295 3Q 2013 Operating working capital (€ mn) ∆ days • DSO -4 • DSI +1 • DPO -2 123 69 3Q 2012 3Q 2013 For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 11
  • 12. 9M 2013 RESULTS IN LINE WITH 2013 “RULE OF THUMB” % growth vs. 9M12 (@ constant forex(1)) % growth vs. 9M12 (@ current forex) SALES GROWTH HIGH SINGLE-DIGIT +8% +4% ADJ. OPERATING INCOME(3)(4) 2x SALES GROWTH +15% +8% ADJ. NET INCOME(3)(4) 2x SALES GROWTH +18% +11% NET DEBT/EBITDA(3) BELOW 1.00x 1.1x For additional disclosures regarding information in this presentation, please see “Notes on the presentation” in the Appendix 3Q 2013 results 12
  • 13. 9M 2013 REVENUE ROADMAP BY GEOGRAPHY Wholesale(1) North America Western Europe Emerging markets +12% excl. Oakley military +18% +19% +10-15% +21% +20-30% +8% +7% +4-7% +2% 9M 2012 9M 2013 2013E North America 9M 2012 9M 2013 2013E OPSM Australia 9M 2012 9M 2013 2013E Emerging markets Retail(2) +14% +10% +10% +6% +4-5% +7% +10-15% +6-8% +2% 9M 2012 9M 2013 2013E 9M 2012 9M 2013 2013E 9M 2012 9M 2013 +15 2013E -18% For additional disclosures regarding information in this presentation, please see “Notes to the presentation” in the Appendix 3Q 2013 results 13
  • 14. 3Q 2013 NORTH AMERICA A structurally growing market › Wholesale sales +2.3% in US$, +8.8% excluding Oakley military business • Strong momentum across all brands but budget sequestration affecting Oakley sales to the US Army › Retail comps(2): +1.2% • Robust Sunglass Hut comps(2) +6.3% - Enhancing in-store experience with digital tools and constant flow of beautiful sunglasses • LensCrafters flat comps(2), nevertheless delivering strong profitability growth - Successfully testing digital eye exams to transform customer experience 3Q 2013 results 14
  • 15. 3Q 2013 EUROPE Accelerated growth, leveraging the strong sun season › Solid sales across Europe, outperforming expectations › Continental Europe, strong momentum persists: +21% • Germany, France and Nordics leading the way › Mediterranean Europe sun shines: +13% • Italy +9%, Spain +19% with Sunglass Hut posting double-digit comps 3Q 2013 results 15
  • 16. 3Q 2013 EMERGING MARKETS Catching the wave › Brazil, China, India and Turkey growing over 20% at constant forex(1) • Boosting “Made in Brazil” collections - Brazil now the biggest market for Vogue - Local Ray-Ban, both sun and prescription, available in stores • China - Wholesale sales doubled YoY - Consistent double-digit growth in comps • Started direct wholesale distribution in Thailand 3Q 2013 results 16
  • 17. PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014 Building on growth engines – brand portfolio › Ray-Ban, expecting solid high single-digit sales growth • Further enhancing the optical collection • Boosting emerging markets penetration • ray-ban.com going global › Oakley, again targeting double-digit sales growth • Strengthening optical business through Oakley True Digital Edge™ • Further investing in design and innovation to support sport/performance leadership › Armani targeting a year of strong growth: over €160 million sales › Atelier: integration completed, new structure up and running Constantly shaping the brand portfolio 3Q 2013 results 17
  • 18. PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014 Building on growth engines – wholesale › “The Luxottica way": a proactive client-oriented service to win in the market place • Customer: profiling, segmentation and dedicated events - MyLuxottica.com, an innovative platform for the ultimate daily relationship with clients 2014 • Product: enhanced storytelling and training with digital tools Partnership in assortment definition and supply services Direct dialogue with final consumers Traditional wholesale STARS E-commerce Third-party distributors Key accounts Top accounts Traditional commercial model 2009 Europe leading in innovation and benefiting the most 3Q 2013 results 18
  • 19. PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014 Building on growth engines – retail › LensCrafters and OPSM, leading innovation and technology in optical retail • Personalizing patient/customer experience - LensCrafters : AccuExam in 170 stores by the end of 2014, associate iPads in all stores - OPSM: AccuFit in all stores, launch of Eye Check app • Omni channel delivering a seamless, easy and interactive experience - CRM segmentation, offering the right service and products to the right client › Sunglass Hut, shaping the sun industry - Going digital - Global journey continues, focusing more and more on mega and gateway cities, eyes on travel retail and department stores - “Opening one store per day“ mindset 3Q 2013 results 19
  • 20. PAVING THE ROAD WITH CONTINUOUS GROWTH WHICH LEADS TO 2014 Building on growth engines – emerging markets › Relentless growth in emerging markets • Brazil to become the second biggest wholesale market, driving wholesale profitability • China - On track to become the #10 wholesale market - Consolidating optical retail excellence, adding 50 new stores • Accelerating investments in new markets - Thailand, Russia, Indonesia and Malaysia › Boosting presence in 12 mega and gateway cities • From North America to Latin America and SouthEast Asia 3Q 2013 results 20
  • 21. OneSight is a public nonprofit organization providing sustainable access to quality vision care and eyewear in underserved communities worldwide. Since 1988, OneSight has engaged thousands of skilled volunteers across Luxottica and other industry partners to hand-deliver the gift of sight to 8.4 million people in 40 countries. 3Q 2013 RESULTS Vision care programs OneSight helped 24,594 people through 5 vision clinics and community outreach programs in China, Mexico, South Africa and North America. Sustainable development initiatives In April, OneSight launched a new community-based model to provide sustainable access to affordable, quality vision care in The Gambia. This small country in West Africa previously had 1 optometrist to serve a population of 1.8 million people. In the first six months of the pilot, 2,468 patients visited the vision center for eye exams, and 40% of the local population is now aware of the new vision center located in Farafenni regional hospital. Volunteers worked hard to find the perfect pair of eyewear for a young boy who had never worn glasses. Incredibly farsighted, he relied on his younger brother to help him through the clinic. After receiving his glasses he read the eye chart with a huge smile on his face. Volunteers were amazed at the immediate change as he went from shy and quiet to happy and confident. - 2013 South Africa OneSight Vision Clinic Based on the pilot programe, OneSight will refine and replicate this model across 7 locations in The Gambia to serve the vision care needs of the entire population. This model will also be scaled to support sustainable vision care initiatives in other developing countries. 3Q 2013 results 21
  • 23. NOTES TO THE PRESENTATION › 1 › 2 Figures at constant exchange rates are calculated using the average exchange rates in effect during the corresponding period of the previous year. Please refer to the “Major currencies” table in the press release titled “Luxottica’s third quarter results confirm solid growth” dated October 29, 2013 available at the www.luxottica.com website under the Investors tab. Comparable store sales reflect the change in sales from one period to another that, for comparison purposes, includes in the calculation only stores open in the more recent period that also were open during the comparable prior period, and applies to both periods the average exchange rate for the prior period and the same geographic area. Commencing 2Q12, retail comparable store sales exclude Pearle Vision results. See “retail comparable store sales” included in this appendix. › 3 › 4 Excluding › 5 › 6 › 7 Net debt/EBITDA, net debt/adjusted EBITDA, net debt, EBITDA, adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted net income, adjusted earnings per share and free cash flow are not measures in accordance with IAS/IFRS. For additional disclosure see the press release titled “Luxottica’s third quarter results confirm solid growth” dated October 29, 2013 available at the www.luxottica.com website under the Investors tab. non-recurring items Equals interest income minus interest expenses Equals extraordinary income minus extraordinary expenses Net debt figures are calculated using the average exchange rates used to calculate EBITDA figures 3Q 2013 results 23
  • 24. WHOLESALE SALES BREAKDOWN WHOLESALE SALES BREAKDOWN FOR 3Q13 WHOLESALE SALES BREAKDOWN FOR 9M13 Wholesale sales: +13.1%(1) Wholesale sales: +12.1%(1) (Sales breakdown by region, 3Q13)(1) (Sales breakdown by region, 9M13)(1) RoW 35% 15% Emerging markets Western Europe RoW 13% Emerging markets 22% 28% Western Europe 38% 23% 26% North America North America YoY changes by region, 3Q13(1) YoY changes by region, 9M13(1) Western Europe Western Europe +8% North America +7% North America +15% +2% +9% excl. Oakley military Emerging markets +20% Emerging markets +21% RoW +23% RoW +12% excl. Oakley military +23% 3Q 2013 results 24
  • 25. RETAIL COMPARABLE STORE SALES(2) 3Q13 9M13 • LensCrafters +0.1% +1.7% • Licensed brands -7.1% -3.6% Optical Australia/New Zealand +2.5% +5.6% Sunglass Hut worldwide +7.5% +7.2% Group retail +2.5% +3.5% Optical North America 3Q 2013 results 25
  • 26. 3Q 2013 DEBT OVERVIEW 3Q 2012 June 30, 2013 3Q 2013 Sept 30, 2013 339 347 Net US$ debt(3) 88 122 Net € debt(3) Capex (79) (81) Translation adj. Operating cash flow 348 388 € 1 = US$ 1.3080 1.3505 Financial charges(5) (30) (22) Net debt (€) (1,886) (1,572) Taxes paid (44) (71) 1.3x 1.1x (3) - Net debt/ EBITDA(3) Net debt/EBITDA excluding exchange rate effect(3)(7) 1.3x ∆ 1.1x EBITDA(3) ∆ working capital Extraordinary charges(6) Free cash flow(3) 271 295 (832) (644) 188 (1,250) (1,095) 155 8 3Q 2013 results 314 26
  • 27. INVESTOR RELATIONS TEAM Alessandra Senici Tel. +39 (02) 8633 - 4662 alessandra.senici@luxottica.com Nicoletta 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 3Q 2013 results 27
  • 28. SOCIAL MEDIA CONTACTS http://www.luxottica.com @Luxottica Like our LuxotticaGroup page youtube.com/luxotticagroup LinkedIn.com/company/Luxottica_Group pinterest.com/Luxotticagroup instagram.comLuxotticagroup slideshare.netLuxotticaGroup google.com/+luxottica 3Q 2013 results 28