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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended June 30, 2012
COMMISSION FILE NO. 1 - 10421

LUXOTTICA GROUP S.p.A.

VIA C. CANTÙ 2, MILAN, 20123 ITALY
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.        Form 20-F ý    Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o    No ý

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                          


LOGO

F O R M 6-K

for the three- and six-months
ended June 30 of
Fiscal Year 2012


INDEX TO FORM 6-K

Item 1    Management report on the interim consolidated financial results as of June 30, 2012 (unaudited)

    1  


Item 2    Financial Statements:


 

 

 

 



 


–Consolidated Statement of Financial Position for the periods ended June 30, 2012 (unaudited) and December 31, 2011 (audited)


 

 


25

 



 


–Consolidated Statement of Income for the periods ended June 30, 2012 and 2011 (unaudited)


 

 


26

 



 


–Consolidated Statement of Comprehensive Income for the periods ended June 30, 2012 and 2011 (unaudited)


 

 


27

 



 


–Consolidated Statement of Stockholders' Equity for the periods ended June 30, 2012 and 2011 (unaudited)


 

 


28

 



 


–Consolidated Statement of Cash Flows for the periods ended June 30, 2012 and 2011 (unaudited)


 

 


29

 



 


–Notes to the Condensed Consolidated Financial Statements as of June 30, 2012 (unaudited)


 

 


31

 


Attachment 1


 


  Exchange rates used to translate financial statements prepared in currencies other than the Euro


 

 


56

 


Attachment 2


 


  Investments of Luxottica Group S.p.A. representing ownership interests in excess of 10% (pursuant to Section 125 Consob Regulation 11971/99)


 

 


57

 

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Corporate Management

Board of Directors    
In office until the approval of the financial statements as of and for the year ending December 31, 2014.

Chairman

 

Leonardo Del Vecchio

Deputy Chairman

 

Luigi Francavilla

Chief Executive Officer

 

Andrea Guerra

Directors

 

Roger Abravanel*

  Mario Cattaneo*

  Enrico Cavatorta

  Claudio Costamagna*

  Claudio Del Vecchio

  Sergio Erede

  Elisabetta Magistretti*

  Marco Mangiagalli*

  Anna Puccio*

  Marco Reboa* (Lead Independent Director)

*Independent director.

   

Human Resources Committee

 

Claudio Costamagna (Chairman)

  Roger Abravanel

  Anna Puccio

Internal Control Committee

 

Mario Cattaneo (Chairman)

  Elisabetta Magistretti

  Marco Mangiagalli

  Marco Reboa

Board of Statutory Auditors

   
In office until the approval of the financial statements as of and for the year ending December 31, 2014

Regular Auditors

 

Francesco Vella (Chairman)

  Alberto Giussani

  Barbara Tadolini

Alternate Auditors

 

Giorgio Silva

  Fabrizio Riccardo di Giusto

Officer Responsible for Preparing the Company's Financial Reports

 

Enrico Cavatorta

Auditing Firm

   
Until approval of the financial statements as of and for the year ending December 31, 2020.

 

PricewaterhouseCoopers SpA


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Luxottica Group S.p.A.
Headquarters and registered office • Via C. Cantù 2, 20123 Milan, Italy
Capital Stock € 28,183,305.72
authorized and issued

ITEM 1. MANAGEMENT REPORT ON THE INTERIM FINANCIAL RESULTS
AS OF JUNE 30, 2012
(UNAUDITED)

        The following discussion should be read in connection with the disclosure contained in the consolidated financial statements as of December 31, 2011, which includes a study about risks and uncertainties that can influence the Group's operational results or financial position.

1.     OPERATING PERFORMANCE FOR THE THREE- AND THE SIX-MONTH PERIODS ENDED JUNE 30, 2012

        During the course of the second quarter of 2012, the Group's growth trend continued. In a more challenging macroeconomic environment, the Group achieved positive results in the majority of the geographic areas in which it operates, with excellent performance in North America, Australia and all emerging countries.

        Net sales for the quarter were Euro 1882.2 million, and increased by 15.2% (+7.0% at constant exchange rates1), from Euro 1,633.5 million in the same period of 2011. Net income increased by 20.6% to Euro 195.5 million from Euro 162.1 million in the same quarter of 2011.

        During the half-year ended June 30, 2012, net sales grew by 15.1% (+9.0% current exchange rates) to Euro 3,670.4 million (Euro 3,189.6 million during the same period in 2011).

        EBITDA in the second quarter of 2012 rose by 18.1% over the same period in 2011, going from Euro 352.2 million in 2011 to Euro 415.9 million in the same period of 2012. Additionally, adjusted EBITDA2 in the first half of 2012 increased by 20.2 percent to Euro 761.2 million from Euro 635.1 million in the same period of 2011.

        Operating income for the second quarter of 2012 amounted to Euro 332.6 million (Euro 276.8 million during the same period of the previous year) and increased by +20.2%, as compared to the same period in 2011. The Group's operating margin grew even further rising from 16.9% in the second quarter of 2011 to 17.7% in the current quarter.

        During the first sixth months of 2012, adjusted operating income3 amounted to Euro 590.6 million, up by 22.0% as compared to Euro 484.2 million in the same period of 2011. The Group's adjusted operating margin4 therefore rose from 15.2% during the first six months of 2011 to 16.1% in the same period of 2012.

        In the second quarter of 2012, net income attributable to Luxottica Stockholders was Euro 195.5 million (Euro 162.1 million in the same period of 2011). In the second quarter 2012 earnings

   


1
We calculate constant exchange rates by applying to the current period the average exchange rates between the Euro and the relevant currencies of the various markets in which we operated during the six-month period ended June 30, 2011. Please refer to Attachment 1 for further details on exchange rates.

2
For a further discussion of adjusted EBITDA, see page 15—"Non-IFRS Measures."

3
For a further discussion of adjusted operating income, see page 15—"Non-IFRS Measures."

4
For a further discussion of adjusted operating margin, see page 15—"Non-IFRS Measures."

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per share ("EPS") was Euro 0.42 and EPS expressed in USD was 0.54 (at an average exchange rate of Euro/USD of 1.2814).

        By carefully controlling working capital, the Group generated positive free cash flow5 in both the first six months of the year (Euro 216 million) and the second quarter (Euro 180 million). After the payment of dividends of approximately Euro 227 million, net debt as of June 30, 2012 was Euro 2,164 million (Euro 2,032 million at the end of 2011), with the ratio of net debt to adjusted EBITDA6 of 1.7x, unchanged compared to December 31, 2011.

2.     SIGNIFICANT EVENTS DURING THE SIX MONTHS ENDED JUNE 30, 2012

January

        On January 20, 2012, the Group successfully completed the acquisition of 80% of share capital of the Brazilian entity Grupo Tecnol Ltd. The remaining 20% will be acquired evenly (five percent per year) starting from 2013 over a four year period. The consideration paid for the 80% was approximately 143.7 million Brazilian Reais (approximately Euro 59.4 million); additionally the Group assumed Tecnol's net debt amounting to approximately Euro 31.5 million. The acquisition furthers the Group's strategy of continued expansion of its wholesale business and acquiring a manufacturing facility in South America.

        On January 24, 2012, the Board of Directors of Luxottica Group S.p.A. (hereinafter, also the "Company") approved the reorganization of the retail business in Australia. As a result of the reorganization, the Group will close approximately 10% of its Australian and New Zealand stores, redirecting resources into its market-leading OPSM brand.

March

        On March 19, 2012, the Company closed an offering in Europe to institutional investors of Euro 500 million of senior unsecured guaranteed notes due March 19, 2019. The notes are listed on the Luxembourg Stock Exchange under ISIN XS0758640279. Interest on the Notes accrues at 3.625% per annum. The Notes are guaranteed on a senior unsecured basis by Luxottica U.S. Holdings Corp. ("U.S. Holdings") and Luxottica S.r.l., both of which are wholly-owned subsidiaries. On March 19, 2012, the notes were assigned a BBB+ credit rating by Standard & Poor's.

April

        At the Stockholders' Meeting on April 27, 2012, the stockholders approved the Statutory Financial Statements as of December 31, 2011, as proposed by the Board of Directors and the distribution of a cash dividend of Euro 0.49 per ordinary share, reflecting a year-over-year 11.4 percent increase. The aggregate dividend amount of Euro 227.0 million was fully paid in May 2012.

May

        On May 17, 2012, the Company entered into an agreement pursuant to which it will acquire approximately 120 Sun Planet stores in Spain and Portugal. Over time, the stores will be rebranded under the Sunglass Hut brand. In 2011, net sales of the chain totaled approximately Euro 22 million.

June

        On June 8, 2012, Armani Group and the Company signed an exclusive license agreement for the design, manufacture and worldwide distribution of sun and prescription eyewear under the Giorgio Armani, Emporio Armani and A/X Armani Exchange brands. The 10-year license agreement,

   


5
For a further discussion of free cash flow, see page 15—"Non-IFRS Measures."

6
For a further discussion of net debt to adjusted EBITDA, see page 15—"Non-IFRS Measures."

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incorporating market conditions, will begin on January 1, 2013. The first collection will be presented during 2013.

3.     FINANCIAL RESULTS

        We are a global leader in the design, manufacture and distribution of fashion, luxury and sport eyewear, with net sales reaching Euro 6.2 billion in 2011, over 65,000 employees and a strong global presence. We operate in two industry segments: (i) manufacturing and wholesale distribution; and (ii) retail distribution. See Note 5 to the Condensed Consolidated Half Year Financial Report as of June 30, 2012 (unaudited) for additional disclosures about our operating segments. Through our manufacturing and wholesale distribution segment, we are engaged in the design, manufacture, wholesale distribution and marketing of house and designer lines of mid- to premium-priced prescription frames and sunglasses. We operate our retail distribution segment principally through our retail brands, which include, among others, LensCrafters, Sunglass Hut, Pearle Vision, OPSM, Laubman & Pank, Bright Eyes, Oakley "O" Stores and Vaults, David Clulow, Multiopticas and our Licensed Brands (Sears Optical and Target Optical).

        As a result of our numerous acquisitions and the subsequent expansion of our business activities in the United States through these acquisitions, our results of operations, which are reported in Euro, are susceptible to currency rate fluctuations between the Euro and the U.S. dollar. The Euro/U.S. dollar exchange rate has fluctuated from an average exchange rate of Euro 1.00 = U.S. $1.2965 in the first six months of 2012 to Euro 1.00 = U.S. $1.4032 in the same period of 2011. With the acquisition of OPSM and Bright Eyes (acquired through Oakley), our results of operations have also been rendered susceptible to currency fluctuations between the Euro and the Australian dollar. Additionally, we incur part of our manufacturing costs in Chinese Yuan; therefore, the fluctuation of the Chinese Yuan relative to other currencies in which we receive revenues could impact the demand of our products or the profitability in consolidation. Although we engage in certain foreign currency hedging activities to mitigate the impact of these fluctuations, they have impacted our reported revenues and expenses during the periods discussed herein. This discussion should be read in conjunction with the risk factor discussion in Note 10 of the Management Report of the 2011 Consolidated Financial Statements.

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RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011 (UNAUDITED)

In accordance with IFRS

 
  Six months ended June 30,
 
   
(Amounts in thousands of Euro)
  2012
  % of
net sales

  2011
  % of
net sales

 
   

Net sales

    3,670,358     100.0 %   3,189,646     100.0 %

Cost of sales

    1,229,042     33.5 %   1,097,127     34.4 %
                   

Gross profit

    2,441,316     66.5 %   2,092,519     65.6 %
                   

Selling

   
1,134,419
   
30.9

%
 
980,366
   
30.7

%

Royalties

    68,104     1.9 %   57,052     1.8 %

Advertising

    225,407     6.1 %   203,673     6.4 %

General and administrative

    444,238     12.1 %   367,194     11.5 %

Total operating expenses

   
1,872,168
   
51.0

%
 
1,608,285
   
50.4

%
                   

Income from operations

    569,148     15.5 %   484,234     15.2 %
                   

Other income/(expense)

                         

Interest income

    11,895     0.3 %   7,235     0.2 %

Interest expense

    (72,988 )   (2.0 )%   (60,434 )   (1.9 )%

Other—net

    (489 )   (0.1 )%   (2,896 )   (0.1 )%
                   

Income before provision for income taxes

    507,566     13.8 %   428,140     13.4 %
                   

Provision for income taxes

    (178,077 )   (4.9 )%   (147,221 )   (4.6 )%
                   

Net income

    329,489     9.0 %   280,919     8.8 %
                   

Attributable to

                         

—Luxottica Group stockholders

    326,321     8.9 %   276,781     8.7 %

—non-controlling interests

    3,168     0.1 %   4,138     0.1 %
                   

NET INCOME

    329,489     9.0 %   280,919     8.8 %
                   

 

 

 

Adjusted Measures7
  2012
  % of
net sales

  2011
  % of
net sales

  % change
 
   

Adjusted income from Operations

    590,580     16.1 %   484,234     15.2 %   22.0 %

Adjusted EBITDA

    721,227     20.7 %   635,140     19.9 %   19.9 %

Adjusted Net Income attributable to Luxottica Group Stockholders

    341,323     9.3 %   276,781     8.7 %   23.3 %

 

 

        Net Sales.    Net sales increased by Euro 480.8 million, or 15.1 percent, to Euro 3,670.4 million in the first six months of 2012 from Euro 3,189.6 million in the same period of 2011. Euro 169.9 million of such increase was attributable to the increased sales in the manufacturing and wholesale distribution segment in the first six months of 2012 as compared to the same period in 2011 and to increased sales in the retail distribution segment of Euro 310.9 million for the same period.

        Net sales for the retail distribution segment increased by Euro 310.9 million, or 16.9 percent, to Euro 2,155.4 million in the first six months of 2012 from Euro 1,844.5 million in the same period in 2011. The increase in net sales for the period was partially attributable to a 6.1 percent improvement in

   


7
Adjusted measures are not in accordance with IFRS. For a further discussion of adjusted measures, see page 15—"Non-IFRS Measures."

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comparable store sales8. In particular, we saw a 6.4 percent increase in comparable store sales for the North American retail operations, and an increase for the Australian/New Zealand retail operations of 5.3 percent. The effects from currency fluctuations between the Euro (which is our reporting currency) and other currencies in which we conduct business, in particular the strengthening of the U.S. dollar and Australian dollar compared to the Euro, increased net sales in the retail distribution segment by Euro 159.8 million during the period.

        Net sales to third parties in the manufacturing and wholesale distribution segment increased by Euro 169.9 million, or 12.6 percent, to Euro 1,515.0 million in the first six months of 2012 from Euro 1,345.1 million in the same period in 2011. This increase was mainly attributable to increased sales of most of our house brands, in particular Ray-Ban, Oakley and Persol, and of some designer brands such as Chanel, Prada, Polo, Tiffany and the recently launched Coach line. These sales volume increases occurred in most of the geographic markets in which the Group operates. These positive effects were partially confirmed by positive currency fluctuations, in particular the strengthening of the U.S. dollar and other minor currencies, including but not limited to the Japanese Yen and Canadian Dollar, despite the weaknesses of the Brazilian Real and Turkish Lira, the total effect of which was to increase net sales to third parties in the manufacturing and wholesale distribution segment by Euro 34.7 million.

        In the first six months of 2012, net sales in the retail distribution segment accounted for approximately 58.7 percent of total net sales, as compared to approximately 57.8 percent of total net sales for the same period in 2011. This increase in sales for the retail distribution segment as a percentage of total net sales was primarily attributable to a 16.9 percent increase in net sales to third parties in our retail distribution segment for the first six months of 2012 as compared to the same period of 2011, which exceeded a 12.6 percent increase in net sales for the manufacturing and wholesale distribution segment for the first six months of 2012 as compared to the same period of 2011.

        In the first six months of 2012, net sales in our retail distribution segment in the United States and Canada comprised 79.3 percent of our total net sales in this segment as compared to 81.8 percent of our total net sales in the same period of 2011. In U.S. dollars, retail net sales in the United States and Canada increased by 4.7 percent to U.S. $2,214.9 million in the first six months of 2012 from U.S. $2,116.2 million for the same period in 2011, due to sales volume increases. During the first six months of 2012, net sales in the retail distribution segment in the rest of the world (excluding the United States and Canada) comprised 20.7 percent of our total net sales in the retail distribution segment and increased by 32.8 percent to Euro 446.9 million in the first six months of 2012 from Euro 336.5 million, or 18.2 percent of our total net sales in the retail distribution segment for the same period in 2011, mainly due to a general increase in consumer demand and to recent acquisitions in Latin America.

        In the first six months of 2012, net sales to third parties in our manufacturing and wholesale distribution segment in Europe were Euro 691.5 million, comprising 45.6 percent of our total net sales in this segment, compared to Euro 682.0 million, or 50.7 percent of total net sales in the segment, for the same period in 2011. The increase in net sales in Europe of Euro 9.5 million in the first six months of 2012 as compared to the same period of 2011 constituted a 1.4 percent increase in net sales to third parties, due to a general increase in consumer demand. Net sales to third parties in our manufacturing and wholesale distribution segment in the United States and Canada were U.S. $511.0 million and comprised 26.0 percent of our total net sales in this segment for the first six months of 2012, compared to U.S. $422.5 million, or 22.4 percent of total net sales in the segment, for the same period of 2011. The increase in net sales in the United States and Canada was primarily due to a general increase in consumer demand. In the first six months of 2012, net sales to third parties in our manufacturing and wholesale distribution segment in the rest of the world were Euro 429.4 million, comprising 28.3 percent

   


8
Comparable store sales reflects 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 in the same geographic area, and applies to both periods the average exchange rate for the prior period.

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of our total net sales in this segment, compared to Euro 362.0 million, or 26.9 percent of our net sales in this segment, in the same period of 2011. The increase of Euro 67.4 million, or 18.6 percent, in the first six months of 2012 as compared to the same period of 2011, was due to the positive effect of currency fluctuations as well as an increase in consumer demand.

        Cost of Sales.    Cost of sales increased by Euro 131.9 million, or 12.0 percent, to Euro 1,229.0 million in the first six months of 2012 from Euro 1,097.1 million in the same period of 2011. As a percentage of net sales, cost of sales decreased to 33.5 percent in the first six months of 2012 as compared to 34.4 percent in the same period of 2011 due to efficiencies achieved in the production cycle. In the first six months of 2012, the average number of frames produced daily in our facilities increased to approximately 271,000 as compared to approximately 266,000 in the same period of 2011, which was attributable to increased production in all manufacturing facilities in response to an overall increase in demand.

        Gross Profit.    Our gross profit increased by Euro 348.8 million, or 16.7 percent, to Euro 2,441.3 million in the first six months of 2012 from Euro 2,092.5 million for the same period of 2011. As a percentage of net sales, gross profit increased to 66.5 percent in the first six months of 2012 as compared to 65.6 percent for the same period of 2011, due to the factors noted above.

        Operating Expenses.    Total operating expenses increased by Euro 263.9 million, or 16.4 percent, to Euro 1,872.2 million in the first six months of 2012 from Euro 1,608.3 million in the same period of 2011. As a percentage of net sales, operating expenses increased to 51.0 percent in the first six months of 2012, from 50.4 percent in the same period of 2011.

        Adjusted operating expenses9, excluding the non-recurring expenses related to the reorganization of the Retail business in Australia amounting to approximately Euro 20.1 million, increased by Euro 243.8 million, or 15.2 percent, to Euro 1,852.1 million in the first six months of 2012 from Euro 1,608.3 million in the same period of 2011. As a percentage of net sales, operating expenses are in line with last year at 50.5 percent in the first six months of 2012, and 50.4 percent in the same period of 2011.

        Selling and advertising expenses (including royalty expenses) increased by Euro 186.8 million, or 15.1 percent, to Euro 1,427.9 million in the first six months of 2012 from Euro 1,241.1 million in the same period of 2011. Selling expenses increased by Euro 154.1 million, or 15.7 percent. Advertising expenses increased by Euro 21.7 million, or 10.7 percent. Royalties increased by Euro 11.1 million, or 19.4 percent. As a percentage of net sales, selling and advertising expenses were 38.9 percent in the first six months of 2012 and 2011.

        Adjusted selling expenses10, excluding the non-recurring expenses related to the reorganization of the Retail business in Australia amounting to approximately Euro 17.1 million, increased by Euro 137.0 million, or 14.0 percent to Euro 1,117.3 million from Euro 980.4 million in the same period of 2011.

        General and administrative expenses, including intangible asset amortization increased by Euro 77.0 million, or 21.0 percent, to Euro 444.2 million in the first six months of 2012 as compared to Euro 367.2 million in the same period of 2011. As a percentage of net sales, general and administrative expenses were 12.1 percent in the first six months of 2012 as compared to 11.5 percent in the same period of 2011.

   


9
For a further discussion of adjusted operating expenses, see page 15—"Non-IFRS Measures."

10
For a further discussion of adjusted selling expenses, see page 15—"Non-IFRS Measures."

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        Adjusted general and administrative expenses11, including intangible asset amortization and excluding the non-recurring expenses related to the reorganization of the Retail business in Australia amounting to approximately Euro 3.0 million, increased by Euro 74.1 million, or 20.2 percent, to Euro 441.2 million in the first six months of 2012 as compared to Euro 367.2 million in the same period of 2011. As a percentage of net sales, adjusted general and administrative expenses were 12.0 percent in the first six months of 2012 as compared to 11.5 percent in the same period of 2011.

        Income from Operations.    For the reasons described above, income from operations increased by Euro 84.9 million, or 17.5 percent, to Euro 569.1 million in the first six months of 2012 from Euro 484.2 million in the same period of 2011. As a percentage of net sales, income from operations increased to 15.5 percent in the first six months of 2012 from 15.2 percent in the same period of 2011.

        Adjusted income from operations,12 excluding the non-recurring expenses related to the reorganization of the Retail business in Australia amounting to Euro 21.4 million, increased by Euro 106.3 million, or 22.0 percent, to Euro 590.6 million in the first six months of 2012 from Euro 484.2 million in the same period of 2011. As a percentage of net sales, adjusted income from operations increased to 16.1 percent in the first six months of 2012 from 15.2 percent in the same period of 2011.

        Other Income (Expense)—Net.    Other income (expense)—net was Euro (61.6) million in the first six months of 2012 as compared to Euro (56.1) million in the same period of 2011. Net interest expense was Euro 61.1 million in the first six months of 2012 as compared to Euro 53.2 million in the same period of 2011. The increase was mainly due to the acquisition of Tecnol and to the arrangement of a new long term loan in the second quarter of 2012.

        Net Income.    Income before taxes increased by Euro 79.4 million, or 18.6 percent, to Euro 507.6 million in the first six months of 2012 from Euro 428.1 million in the same period of 2011, for the reasons described above. As a percentage of net sales, income before taxes increased to 13.8 percent in the first six months of 2012 from 13.4 percent in the same period of 2011. Adjusted income before taxes13 increased by Euro 100.9 million, or 23.6 percent, to Euro 529.0 million in the first six months of 2012 from Euro 428.1 million in the same period of 2011. As a percentage of net sales, adjusted income before taxes was 14.4 percent in the first six months of 2012 as compared to 13.4 percent in the first six months of 2011. Net income attributable to non-controlling interests decreased to Euro 3.2 million in the first six months of 2012 as compared to Euro 4.1 million in the same period of 2011. Our effective tax rate was 35.1 percent in the first six months of 2012 as compared to 34.4 percent for the same period of 2011.

        Net income attributable to Luxottica Group stockholders increased by Euro 49.5 million, or 17.9 percent, to Euro 326.3 million in the first six months of 2012 from Euro 276.8 million in the same period of 2011. Net income attributable to Luxottica Group stockholders as a percentage of net sales increased to 8.9 percent in the first six months of 2012 from 8.7 percent in the same period of 2011.

        Adjusted net income attributable to Luxottica Group Stockholders14 increased by Euro 64.5 million, or 23.3 percent, to Euro 341.3 million in the first six months of 2012 from Euro 276.8 million in the same period of 2011. Adjusted net income attributable to Luxottica Group stockholders as a percentage of net sales increased to 9.3 percent in the first six months of 2012 from 8.7 percent in the same period of 2011.

        Basic and diluted earnings per share were Euro 0.70 in the first six months of 2012 as compared to Euro 0.60 in the same period of 2011.

        Adjusted basic and diluted earnings per share15 were Euro 0.74 in the first six months of 2012 as compared to Euro 0.60 in the same period of 2011.

   


11
For a further discussion of adjusted general and administrative expenses, see page 15—"Non-IFRS Measures."

12
For a further discussion of adjusted income from operations, see page 15—"Non-IFRS Measures."
13
For a further discussion of adjusted income before taxes, see page 15—"Non-IFRS Measures."

14
For a further discussion of adjusted net income attributable to Luxottica Group stockholders, see page 15—"Non-IFRS Measures."

15
For a further discussion of adjusted basic and diluted earnings per share, see page 15—"Non-IFRS Measures."

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RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2012 AND 2011 (UNAUDITED)

In accordance with IFRS

 
  Three months ended June 30,
 
   
(Amounts in thousands of Euro)
  2012
  % of
net sales

  2011
  % of
net sales

 
   

Net sales

    1,882,185     100.0 %   1,633,544     100.0 %

Cost of sales

    606,477     32.2 %   542,674     33.2 %
                   

Gross profit

    1,275,708     67.8 %   1,090,871     66.8 %
                   

Selling

   
562,847
   
29.9

%
 
488,101
   
29.9

%

Royalties

    35,586     1.9 %   28,509     1.7 %

Advertising

    123,429     6.6 %   113,260     6.9 %

General and administrative

    221,213     11.8 %   184,183     11.3 %

Total operating expenses

   
943,075
   
49.8

%
 
814,053
   
49.8

%
                   

Income from operations

    332,633     16.9 %   276,819     16.9 %
                   

Other income/(expense)

                         

Interest income

    6,478     0.3 %   5,148     0.3 %

Interest expense

    (36,004 )   1.9 %   (31,172 )   1.9 %

Other—net

    (421 )   0.1 %   (1,152 )   0.1 %
                   

Income before provision for income taxes

    302,686     16.1 %   249,642     15.3 %
                   

Provision for income taxes

    (105,896 )   5.6 %   (85,822 )   5.3 %
                   

Net income

    196,790     10.5 %   163,820     10.0 %
                   

Attributable to

                         

—Luxottica Group stockholders

    195,545     10.4 %   162,087     9.9 %

—non-controlling interests

    1,245     0.1 %   1,734     0.1 %
                   

NET INCOME

    196,790     10.5 %   163,820     10.0 %
                   

 

 

        Net Sales.    Net sales increased by Euro 248.7 million, or 15.2 percent, to Euro 1,882.2 million in the three-month period ended June 30, 2012 from Euro 1,633.5 million in the same period of 2011. Euro 84.2 million of such increase was attributable to the increased sales in the manufacturing and wholesale distribution segment in the three-month period ended June 30, 2012 as compared to the same period in 2011 and to the increased sales in the retail distribution segment of Euro 164.4 million for the same period.

        Net sales for the retail distribution segment decreased by Euro 164.4 million, or 17.7 percent, to Euro 1,094.0 million in the three-month period ended June 30, 2012 from Euro 929.6 million in the same period in 2011. The segment experienced a 5.1 percent improvement in comparable store sales16. In particular, there was a 5.6 percent increase in comparable store sales for the North American retail operations, and 4.6 percent increase for the Australian/New Zealand retail operations. The effects from currency fluctuations between the Euro (which is our reporting currency) and other currencies in which we conduct business, in particular the strengthening of the U.S. dollar and Australian Dollar, increased net sales in the retail distribution segment by Euro 109.6 million during the period.

   


16
Comparable store sales reflects 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 in the same geographic area, and applies to both periods the average exchange rate for the prior period.

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        Net sales to third parties in the manufacturing and wholesale distribution segment increased by Euro 84.2 million, or 12.0 percent, to Euro 788.2 million in the three-month period ended June 30, 2012 from Euro 704.0 million in the same period in 2011. This increase was mainly attributable to increased sales of most of our house brands, in particular Ray-Ban, Oakley and Persol and of some designer brands such as Chanel, Polo, Prada, Tiffany and the recently launched Coach line. These sales volume increases occurred in most of the geographic markets in which the Group operates. These positive effects were partially decreased by negative currency fluctuations, in particular a strengthening of the U.S. dollar and other minor currencies, including but not limited to the Canadian dollar and the Japanese Yen, which increased net sales to third parties in the manufacturing and wholesale distribution segment by Euro 25.4 million, notwithstanding the weaknesses of the Brazilian Real and Turkish Lira.

        During the three-month period ended June 30, 2012, net sales in the retail distribution segment accounted for approximately 58.1 percent of total net sales, as compared to approximately 56.9 percent of total net sales for the same period in 2011. This increase in sales for the retail distribution segment as a percentage of total net sales was primarily attributable to a 17.7 percent increase in net sales to third parties in our retail distribution segment for the three-month period ended June 30, 2012 from the same period of 2011, as compared to a 12.0 percent decrease in net sales in the manufacturing and wholesale distribution segment for the three-month period ended June 30, 2012 from the same period of 2011.

        During the three-month period ended June 30, 2012, net sales in our retail distribution segment in the United States and Canada comprised 80.0 percent of our total net sales in this segment as compared to 81.6 percent of our total net sales in the same period of 2011. In U.S. dollars, retail net sales in the United States and Canada increased by 2.9 percent to U.S. $1,122.7 million in the three-month period ended June 30, 2012 from U.S. $1,091.1 million for the same period in 2011, due to sales volume increases. During the three-month period ended June 30, 2012, net sales in the retail distribution segment in the rest of the world (excluding the United States and Canada) comprised 20.0 percent of our total net sales in the retail distribution segment and increased by 28.1 percent to Euro 218.7 million in the three-month period ended June 30, 2012 from Euro 170.9 million, or 18.4 percent of our total net sales in the retail distribution segment for the same period in 2011, mainly due to an increase in consumer demand and to recent acquisitions in Latin America.

        During the three-month period ended June 30, 2012, net sales to third parties in our manufacturing and wholesale distribution segment in Europe were Euro 362.5 million, comprising 46.0 percent of our total net sales in this segment, compared to Euro 370.2 million, or 52.6 percent of total net sales in the segment, for the same period in 2011. The decrease in net sales in Europe of Euro (7.7) million in the three-month period ended June 30, 2012 as compared to the same period of 2011 constituted a (2.1) percent decrease in net sales to third parties, due to a general decrease in consumer demand. Net sales to third parties in our manufacturing and wholesale distribution segment in the United States and Canada were U.S. $263.8 million and comprised 26.1 percent of our total net sales in this segment for the three-month period ended June 30, 2012, compared to U.S. $212.8 million, or 21.0 percent of total net sales in the segment, for the same period of 2011. The increase in net sales in the United States and Canada was primarily due to a general increase in consumer demand. In the three-month period ended June 30, 2012, net sales to third parties in our manufacturing and wholesale distribution segment in the rest of the world were Euro 220.2 million, comprising 27.9 percent of our total net sales in this segment, compared to Euro 186.0 million, or 26.4 percent of our net sales in this segment, in the same period of 2011. The increase of Euro 34.2 million, or 18.4 percent, in the three-month period ended June 30, 2012 as compared to the same period of 2011, was due to an increase in consumer demand.

        Cost of Sales.    Cost of sales increased by Euro 63.8 million, or 11.8 percent, to Euro 606.5 million in the three-month period ended June 30, 2012 from Euro 542.7 million in the same period of 2011. As a percentage of net sales, cost of sales decreased to 32.3 percent in the three-month period ended June 30, 2012 compared to 33.2 percent in the three-month period ended June 30, 2011 due to efficiencies achieved in the production cycle. The average number of frames produced daily in our

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facilities increased to approximately 278,100 in the three-month period ended June 30, 2012, as compared to approximately 280,700 in the same period of 2011.

        Gross Profit.    Our gross profit increased by Euro 184.8 million, or 16.9 percent, to Euro 1,275.7 million in the three-month period ended June 30, 2012 from Euro 1,090.9 million for the same period of 2011. As a percentage of net sales, gross profit increased to 67.8 percent in the three month period ended June 2012 as compared to 66.8 percent in the three-month period ended June 30, 2011, due to the factors noted above.

        Operating Expenses.    Total operating expenses increased by Euro 129.0 million, or 15.8 percent, to Euro 943.1 million in the three-month period ended June 30, 2012 from Euro 814.1 million in the same period of 2011. As a percentage of net sales, operating expenses increased to 50.1 percent in the three-month period ended June 30, 2012, from 49.8 percent in the same period of 2011.

        Selling and advertising expenses (including royalty expenses) increased by Euro 92.0 million, or 14.6 percent, to Euro 721.9 million in the three-month period ended June 30, 2012 from Euro 629.9 million in the same period of 2011. Selling expenses increased by Euro 74.7 million, or 15.3 percent. Advertising expenses increased by Euro 10.2 million, or 9.0 percent. Royalties increased by Euro 7.1 million, or 24.8 percent. As a percentage of net sales, selling and advertising expenses are in line at 38.3 percent in the three-month period ended June 30, 2012, compared to 38.6 percent for the same period of 2011.

        General and administrative expenses, including intangible asset amortization increased by Euro 37.0 million, or 20.1 percent, to Euro 221.2 million in the three-month period ended June 30, 2012 as compared to Euro 184.2 million in the same period of 2011. As a percentage of net sales, general and administrative expenses were 11.8 percent in the three-month period ended June 30, 2012 as compared to 11.3 percent in the same period of 2011.

        Income from Operations.    For the reasons described above, income from operations increased by Euro 55.8 million, or 20.2 percent, to Euro 332.6 million in the three-month period ended June 30, 2012 from Euro 276.8 million in the same period of 2011. As a percentage of net sales, income from operations increased to 17.7 percent in the three-month period ended June 30, 2012 from 16.9 percent in the same period of 2011.

        Other Income (Expense)—Net.    Other income (expense)—net was Euro (29.9) million in the three-month period ended June 30, 2012 as compared to Euro (27.2) million in the same period of 2011. Net interest expense was Euro 29.5 million in the three-month period ended June 30, 2012 as compared to Euro 26.0 million in the same period of 2011.

        Net Income.    Income before taxes increased by Euro 53.0 million, or 21.2 percent, to Euro 302.7 million in the three-month period ended June 30, 2012 from Euro 249.6 million in the same period of 2011, for the reasons described above. As a percentage of net sales, income before taxes increased to 16.1 percent in the three-month period ended June 30, 2012 from 15.3 percent in the same period of 2011. Net income attributable to non-controlling interests decreased to Euro 1.2 million in the three-month period ended June 30, 2012 as compared to Euro 1.7 million in the same period of 2011. Our effective tax rate was 35.0 percent in the three-month period ended June 30, 2012 as compared to 34.4 percent for the same period of 2011.

        Net income attributable to Luxottica Group stockholders increased by Euro 33.5 million, or 20.6 percent, to Euro 195.5 million in the three-month period ended June 30, 2012 from Euro 162.1 million in the same period of 2011. Net income attributable to Luxottica Group stockholders as a percentage of net sales increased to 10.4 percent in the three-month period ended June 30, 2012 from 9.9 percent in the same period of 2011.

        Basic and diluted earnings per share were Euro 0.42 in the three-month period ended June 30, 2012 as compared to Euro 0.35 in the same period of 2011.

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OUR CASH FLOWS

        The following table sets forth for the periods indicated certain items included in our statements of consolidated cash flows included in Item 2 of this report.

   
 
   
  As of
June 30,
2012

  As of
June 30,
2011

 
(Amounts in thousands of Euro)
  (unaudited)
 
   

A)

 

Cash and cash equivalents at the beginning of the period

    905,100     679,852  

B)

 

Cash provided by operating activities

    372,233     272,300  

C)

 

Cash used in investing activities

    (210,479 )   (162,508 )

D)

 

Cash used in financing activities

    57,450     (260,339 )

 

Effect of exchange rate changes on cash and cash equivalents

    13,205     (20,908 )

E)

 

Net change in cash and cash equivalents

    232,409     (171,455 )
               

F)

 

Cash and cash equivalents at the end of the period

    1,137,510     508,397  
               
   

        Operating activities.    Cash provided by operating activities was Euro 372.3 million and Euro 272.3 million for the first six months of 2012 and 2011, respectively.

        Depreciation and amortization were Euro 170.6 million in the first six months of 2012 as compared to Euro 150.9 million in the same period of 2011.

        Cash used in accounts receivable was Euro 229.2 million in the first six months of 2012, compared to Euro 179.7 million in the same period of 2011. This change was primarily due to an increase in sales volume in the first six months of 2012 as compared to the same period of 2011. Cash used in inventory was Euro 30.5 million in the first six months of 2012 as compared to Euro 9.5 million in the same period of 2011. The increase in inventory in the first six months of 2012 is mainly related to new acquisitions starting from the second half of 2011, which increased inventory by Euro 20.8 million. Cash used in accounts payable was Euro 0.5 million in the first six months of 2012 compared to Euro 40.0 million in the same period of 2011. This change is mainly due to more favorable payment terms agreed during 2011. Income taxes paid were Euro 108.2 million in the first six months of 2012 as compared to Euro 95.6 million in the same period of 2011. This change was mainly due to the timing of tax payments made by the Group in the different jurisdictions. Interest paid was Euro 57.3 million and Euro 60.9 million in the first six months of 2012 and 2011, respectively.

        Investing activities.    Our cash used in investing activities was Euro 210.5 million for the first six months of 2012 as compared to Euro 162.5 million for the same period in 2011. The cash used in investing activities in the first six months of 2012 primarily consisted of (i) Euro 91.4 million in capital expenditures, (ii) Euro 63.1 million for the acquisition of intangible assets related to the creation of a new IT structure, (iii) Euro 53.0 million for the acquisition of Tecnol, and (iv) other acquisitions of Euro 3.0 million.

        Cash used in investing activities in the first six months of 2011 primarily consisted of (i) Euro 131.6 million in capital expenditures, (ii) the acquisition of two retail chains of Euro 19.5 million, the acquisition of a retail chain in Australia of Euro 6.0 million and other minor acquisitions of Euro 5.4 million in the first six months of 2011.

        Financing activities.    Our cash provided by/(used in) financing activities for the first six months of 2012 and 2011 was Euro 57.5 million and Euro (279.8) million, respectively. Cash used in financing activities for the first six months of 2012 consisted primarily of (i) Euro 508.4 million of proceeds from the issuance of long-term borrowings, (ii) Euro (176.6) million used to repay long-term debt expiring during the first six months of 2012 and (iii) Euro (227.4) million in cash used to pay dividends to the Company's stockholders. Cash (used in)/provided by financing activities for the first six months of 2011 consisted primarily of (i) Euro (95.2) million in cash used to repay long-term debt expiring during the first six months of 2011 and (ii) Euro (204.6) million in cash used to pay dividends.

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OUR CONSOLIDATED STATEMENT OF FINANCIAL POSITION

   
ASSETS
(Amounts in thousands of Euro)
  June 30, 2012
(unaudited)

  December 31, 2011
(audited)

 
   

CURRENT ASSETS:

             

Cash and cash equivalents

    1,137,510     905,100  

Accounts receivable—net

    962,798     714,033  

Inventories—net

    708,023     649,506  

Other assets

    208,846     230,850  
           

Total current assets

    3,017,177     2,499,489  

NON-CURRENT ASSETS:

             

Property, plant and equipment—net

    1,191,892     1,169,066  

Goodwill

    3,240,651     3,090,563  

Intangible assets—net

    1,407,292     1,350,921  

Investments

    8,971     8,754  

Other assets

    136,558     147,625  

Deferred tax assets

    199,438     377,739  
           

Total non-current assets

    6,184,802     6,144,667  
           

TOTAL ASSETS

    9,201,979     8,468,624  
           

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

  June 30, 2012
(unaudited)

  December 31, 2011
(audited)

 
   

CURRENT LIABILITIES:

             

Short term borrowings

    116,535     193,834  

Current portion of long-term debt

    722,471     498,295  

Accounts payable

    628,528     608,327  

Income taxes payable

    79,285     39,859  

Short term provisions for risks and other charges

    70,081     53,337  

Other liabilities

    612,404     579,595  
           

Total current liabilities

    2,229,305     1,973,247  

NON-CURRENT LIABILITIES:

             

Long-term debt

    2,462,397     2,244,583  

Employee benefits

    224,898     197,675  

Deferred tax liabilities

    268,740     280,842  

Long term provisions for risks and other charges

    99,523     80,400  

Other liabilities

    65,918     66,756  
           

Total non-current liabilities

    3,121,476     2,870,256  

STOCKHOLDERS' EQUITY:

             

Luxottica Group stockholders' equity

    3,838,417     3,612,928  

Non-controlling interests

    12,782     12,192  
           

Total stockholders' equity

    3,851,199     3,625,120  
           

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

    9,201,979     8,468,624  
           

 

 

        As of June 30, 2012, total assets increased by Euro 733.4 million to Euro 9,202.0 million, compared to Euro 8,468.6 million as of December 31, 2011.

        In the first six months of 2012, non-current assets increased by Euro 215.7 million, due to increases in intangible assets (including goodwill) of Euro 206.5 million, property, plant and equipment of

12


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Euro 22.8 million, investments of Euro 0.2 million and partially offset by decreases of other assets of Euro 11.1 million and of deferred tax assets of Euro 2.8 million.

        The increase in intangible assets was primarily due to the positive effects of foreign currency fluctuations from December 2011 to June 2012 of Euro 97.3 million, the software additions of Euro 63.1 and Euro 119.0 related to the acquisition that occurred in the first six months of 2012 and partially offset by the amortization for the period of Euro 67.3 million.

        The increase in property, plant and equipment was primarily due to positive currency fluctuation effects of Euro 22.2 million, the additions of Euro 109.6 million, including financial leases of Euro 18.2 million and Euro 10.2 million related to the acquisition made in the first six months of 2012, and partially offset by the depreciation for the period of Euro 103.4 and decreases of the period of Euro 18.7 million.

        As of June 30, 2012, as compared to December 31, 2011:

Our net financial position as of June 30, 2012 and December 31, 2011 was as follows:

   
(Amounts in thousands of Euro)
  June 30,
2012
(unaudited)

  December 31,
2011
(audited)

 
   

Cash and cash equivalents

    1,137,510     905,100  

Bank overdrafts

    (116,535 )   (193,834 )

Current portion of long-term debt

    (722,471 )   (498,295 )

Long-term debt

    (2,462,397 )   (2,244,583 )
           

Total

    (2,163,894 )   (2,031,612 )

 

 

        Bank overdrafts consist of the utilized portion of short-term uncommitted revolving credit lines borrowed by various subsidiaries of the Group.

        As of June 30, 2012, Luxottica, together with our wholly-owned Italian subsidiary Luxottica S.r.l., had credit lines aggregating Euro 311.7 million. The interest rate is a floating rate of EURIBOR plus a margin on average of approximately 0.45 percent. As of June 30, 2012, we have not utilized these credit lines.

        As of June 30, 2012, our wholly-owned subsidiary Luxottica U.S. Holdings maintained unsecured lines of credit with an aggregate maximum availability of Euro 103.2 million (U.S. $130 million). The interest rate is a floating rate and is approximately USD LIBOR plus 80 basis points. At June 30, 2012, these lines were not used.

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4.     RELATED PARTY TRANSACTIONS

        Our related party transactions are neither atypical nor unusual and occur in the ordinary course of our business. Management believes that these transactions are fair to the Company. For further details regarding related party transactions, please refer to Note 30 to the Condensed Consolidated Half Year Financial Report as of June 30, 2012 (unaudited).

5.     SUBSEQUENT EVENTS

        For further details regarding subsequent events, please refer to Note 37 to the Condensed Consolidated Half Year Financial Report as of June 30, 2012 (unaudited).

6.     2011 OUTLOOK

        Management believes that the results obtained in the first six months of 2012 are an excellent basis for the second half of 2012. Management looks to the year optimistically, relying on the strength of the Group's brands and aware of the need to deliver on its plans with impeccable execution.

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NON-IFRS MEASURES

Adjusted measures

        We use in this Management Report certain performance measures that are not in accordance with IFRS. Such non-IFRS measures are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IFRS. Rather, these non-IFRS measures should be used as a supplement to IFRS results to assist the reader in better understanding our operational performance.

        Such measures are not defined terms under IFRS and their definitions should be carefully reviewed and understood by investors. Such non-IFRS measures are explained in detail and reconciled to their most comparable IFRS measures below.

        In order to provide a supplemental comparison of current period results of operations to prior periods, we have adjusted for certain non-recurring transactions or events.

        We have made such adjustments to the following measures: operating income and operating margin, EBITDA, EBITDA margin and net income by excluding non-recurring costs related to the reorganization of the retail business in Australia of Euro 21.4 million

        The Group believes that these adjusted measures are useful to both management and investors in evaluating the Group's operating performance compared with that of other companies in its industry because they exclude the impact of non-recurring items that are not relevant to the Group's operating performance.

        The adjusted measures referenced above are not measures of performance in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). We include these adjusted comparisons in this presentation in order to provide a supplemental view of operations that excludes items that are unusual, infrequent or unrelated to our ongoing core operations. See the tables below for a reconciliation of the adjusted measures discussed above to their most directly comparable IFRS financial measure or, in the case of adjusted EBITDA, to EBITDA, which is also a non-IFRS measure. For reconciliation of EBITDA to its most directly comparable IFRS measure, see the pages following the tables below:

Non-IFRS Measure: Reconciliation between reported and adjusted P&L items

Luxottica Group

   
 
  6M12
 
   
Millions of Euro
  Net
sales

  EBITDA
  EBITDA
margin

  Operating
Income

  Operating
Income
margin

  Income
before
taxes

  Net Income
  EPS
base

  EPS
dilutive

 
   

Reported

    3,670.4     739.8     20.2 %   569.1     15.5 %   507.6     326.3     0.70     0.70  

> Adjustment for OPSM reorganization

        21.4     0.5 %   21.4     0.6 %   21.4     15.0     0.04     0.03  

Adjusted

    3,670.4     761.2     20.7 %   590.6     16.1 %   529.0     341.3     0.74     0.73  

 

 

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Non-IFRS Measure: Reconciliation between reported and adjusted P&L items

Luxottica Group

   
 
  6M11
 
   
Millions of Euro
  Net sales
  EBITDA
  Operating Income
  Net Income
 
   

Reported

    3,189.6     635.1     484.2     276.8  

> Adjustment for OPSM reorganization

                 

Adjusted

    3,189.6     635.1     484.2     276.8  

 

 

Non-IFRS Measure: Reconciliation between reported and adjusted P&L items

Retail Division

   
 
  6M12
 
   
Millions of Euro
  Net sales
  EBITDA
  Operating Income
 
   

Reported

    2,155.4     353.0     272.6  

> Adjustment for OPSM reorganization

        21.4     21.4  

Adjusted

    2,155.4     374.5     294.1  

 

 

Retail Division

   
 
  6M11
 
   
Millions of Euro
  Net sales
  EBITDA
  Operating Income
 
   

Reported

    1,844.5     295.9     226.6  

> Adjustment for OPSM reorganization

             

Adjusted

    1,844.5     295.9     226.6  

 

 

EBITDA and EBITDA margin

        EBITDA represents net income attributable to Luxottica Group stockholders, before non-controlling interest, provision for income taxes, other income/expense, depreciation and amortization. EBITDA margin means EBITDA divided by net sales. We believe that EBITDA is useful to both management and investors in evaluating our operating performance compared with that of other companies in our industry. Our calculation of EBITDA allows us to compare our operating results with those of other companies without giving effect to financing, income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to the overall operating performance of a company's business.

        EBITDA and EBITDA margin are not measures of performance under IFRS. We include them in this Management Report in order to:

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        EBITDA and EBITDA margin are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IFRS. Rather, these non-IFRS measures should be used as a supplement to IFRS results to assist the reader in better understanding the operational performance of the Group.

        The Group cautions that these measures are not defined terms under IFRS and their definitions should be carefully reviewed and understood by investors.

        Investors should be aware that our method of calculating EBITDA may differ from methods used by other companies. We recognize that the usefulness of EBITDA has certain limitations, including:

        We compensate for the foregoing limitations by using EBITDA as a comparative tool, together with IFRS measurements, to assist in the evaluation of our operating performance and leverage. The

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following table provides a reconciliation of EBITDA to net income, which is the most directly comparable IFRS financial measure, as well as the calculation of EBITDA margin on net sales:

Non-IFRS Measure: EBITDA and EBITDA margin

   
Millions of Euro
  2Q 2011
  2Q 2012
  6M 2011
  6M 2012
  FY 2011
  LTM
June 30,
2012

 
   

Net income/(loss)

    162.1     195.5     276.8     326.3     452.3     501.9  

(+)

                                     

Net income attributable to non-controlling interest

   
1.7
   
1.2
   
4.1
   
3.2
   
6.0
   
5.0
 

(+)

                                     

Provision for income taxes

   
85.8
   
105.9
   
147.2
   
178.1
   
237.0
   
267.8
 

(+)

                                     

Other (income)/expense

   
27.2
   
29.9
   
56.1
   
61.6
   
111.9
   
117.4
 

(+)

                                     

Depreciation & amortization

   
75.3
   
83.3
   
150.9
   
170.6
   
323.9
   
343.6
 

(+)

                                     
                           

EBITDA

   
352.2
   
415.9
   
635.1
   
739.8
   
1,131.0
   
1,235.7
 

(=)

                                     

Net sales

   
1,633.5
   
1,882.2
   
3,189.6
   
3,670.4
   
6,222.5
   
6,703.2
 

(/)

                                     

EBITDA margin

   
21.6

%
 
22.1

%
 
19.9

%
 
20.2

%
 
18.2

%
 
18.4

%

(=)

                                     
   

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Non-IFRS Measure: Adjusted EBITDA and Adjusted EBITDA margin

   
Millions of Euro
  2Q 2011
  2Q 2012
  6M 2011
  6M 2012(1)
  FY 2011(1)
  LTM
June 30,
2012(1)

 
   

Adjusted Net income/(loss)

    162.1     195.5     276.8     341.3     455.6     520.2  

(+)

                                     

Net income attributable to non-controlling interest

   
1.7
   
1.2
   
4.1
   
3.2
   
6.0
   
5.0
 

(+)

                                     

Adjusted provision for income taxes

   
85.8
   
105.9
   
147.2
   
184.5
   
247.4
   
284.7
 

(+)

                                     

Other (income)/expense

   
27.2
   
29.9
   
56.1
   
61.6
   
111.9
   
117.4
 

(+)

                                     

Adjusted depreciation & amortization

   
75.3
   
83.3
   
150.9
   
170.6
   
315.0
   
334.7
 

(+)

                                     
                           

Adjusted EBITDA

   
352.2
   
415.9
   
635.1
   
761.2
   
1,135.9
   
1,261.9
 

(=)

                                     

Net sales

   
1,633.5
   
1,882.2
   
3,189.6
   
3,670.4
   
6,222.5
   
6,703.2
 

(/)

                                     

Adjusted EBITDA margin

   
21.6

%
 
22.1

%
 
19.9

%
 
20.7

%
 
18.3

%
 
18.8

%

(=)

                                     
   
(1)
The adjusted figures exclude the following measures:

(a)
an extraordinary gain of approximately €19 million related to the acquisition, in 2009, of a 40% stake in Multiopticas Internacional;

(b)
non-recurring costs related to Luxottica's 50th anniversary celebrations of approximately €12 million, including the adjustment relating to the grant of treasury shares to Group employees;

(c)
non-recurring restructuring and start-up costs in the Retail Division of approximately €11 million; and

(d)
non-recurring OPSM re-organization costs for approximately €9.5 million in 2011 and €21.4 million in 2012.

Free Cash Flow

        Free cash flow represents net income before noncontrolling interests, taxes, other income/expense, depreciation and amortization (i.e., EBITDA) plus or minus the decrease/(increase) in working capital over the prior period, less capital expenditures, plus or minus interest income/(expense) and extraordinary items, minus taxes paid. We believe that free cash flow is useful to both management and investors in evaluating our operating performance compared with other companies in our industry. In particular, our calculation of free cash flow provides a clearer picture of our ability to generate net cash from operations, which is used for mandatory debt service requirements, to fund discretionary investments, pay dividends or pursue other strategic opportunities.

        Free cash flow is not a measure of performance under IFRS. We include it in this Management Report in order to:

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        Free cash flow is not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IFRS. Rather, this non-IFRS measure should be used as a supplement to IFRS results to assist the reader in better understanding the operational performance of the Group.

        The Group cautions that this measure is not a defined term under IFRS and its definition should be carefully reviewed and understood by investors.

        Investors should be aware that our method of calculation of free cash flow may differ from methods used by other companies. We recognize that the usefulness of free cash flow as an evaluative tool may have certain limitations, including:

        We compensate for the foregoing limitations by using free cash flow as one of several comparative tools, together with IFRS measurements, to assist in the evaluation of our operating performance.

        The following table provides a reconciliation of free cash flow to EBITDA and the table above provides a reconciliation of EBITDA to net income, which is the most directly comparable IFRS financial measure:

Non-IFRS Measure: Free cash flow

   
Millions of Euro
  6M 2012
 
   

Adjusted EBITDA(1)

    761  

D working capital

    (229 )

Capex

    (146 )
       

Operating cash flow

    386  

Financial charges(2)

    (61 )

Taxes

    (108 )

Other—net

    (0 )
       

Free cash flow

    216  
   
(1)
EBITDA is not an IFRS measure; please see table on the earlier page for a reconciliation of EBITDA to net income.

(2)
Equals interest income minus interest expense.

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Non-IFRS Measure: Free cash flow

   
Millions of Euro
  2Q 2012
 
   

EBITDA(1)

    416  

D working capital

    (26 )

Capex

    (84 )
       

Operating cash flow

    305  

Financial charges(2)

    (30 )

Taxes

    (96 )

Other—net

    (0 )
       

Free cash flow

    180  
   
(1)
EBITDA is not an IFRS measure; please see table on the earlier page for a reconciliation of EBITDA to net income.

(2)
Equals interest income minus interest expense.

Net debt to EBITDA ratio

        Net debt means the sum of bank overdrafts, current portion of long-term debt and long-term debt, less cash. EBITDA represents net income before non-controlling interest, taxes, other income/expense, depreciation and amortization. The Group believes that EBITDA is useful to both management and investors in evaluating the Group's operating performance compared with that of other companies in its industry. Our calculation of EBITDA allows us to compare our operating results with those of other companies without giving effect to financing, income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to the overall operating performance of a company's business. The ratio of net debt to EBITDA is a measure used by management to assess the Group's level of leverage, which affects our ability to refinance our debt as it matures and incur additional indebtedness to invest in new business opportunities. The ratio also allows management to assess the cost of existing debt since it affects the interest rates charged by the Company's lenders.

        EBITDA and ratio of net debt to EBITDA are not measures of performance under International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

        We include them in this Management Report in order to:

        EBITDA and ratio of net debt to EBITDA are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IFRS. Rather, these non-IFRS measures should be used as a supplement to IFRS results to assist the reader in better understanding the operational performance of the Group.

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Table of Contents

        The Group cautions that these measures are not defined terms under IFRS and their definitions should be carefully reviewed and understood by investors.

        Investors should be aware that Luxottica Group's method of calculating EBITDA and the ratio of net debt to EBITDA may differ from methods used by other companies.

        The Group recognizes that the usefulness of EBITDA and the ratio of net debt to EBITDA as evaluative tools may have certain limitations, including:

        Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations. We compensate for the foregoing limitations by using EBITDA and the ratio of net debt to EBITDA as two of several comparative tools, together with IFRS measurements, to assist in the evaluation of our operating performance and leverage.

        See the table below for a reconciliation of net debt to long-term debt, which is the most directly comparable IFRS financial measure, as well as the calculation of the ratio of net debt to EBITDA. For a reconciliation of EBITDA to its most directly comparable IFRS measure, see the table on the earlier page.

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Table of Contents

Non-IFRS Measure: Net debt and Net debt/EBITDA

   
Millions of Euro
  June 30,
2012

  Dec. 31,
2011

 
   

Long-term debt

    2,462.4     2,244.6  

(+)

             

Current portion of long-term debt

   
722.5
   
498.3
 

(+)

             

Bank overdrafts

   
116.5
   
193.8
 

(+)

             

Cash

   
(1,137.5

)
 
(905.1

)

(-)

             

Net debt

   
2,163.9
   
2,031.6
 

(=)

             

EBITDA

   
1,235.7
   
1,131.0
 

Net debt/EBITDA

   
1.8

x
 
1.8

x

Net debt @ avg. exchange rates(1)

   
2,097.0
   
1,944.4
 

Net debt @ avg. exchange rates(1)/EBITDA

   
1.7

x
 
1.7

x
   
(1)
Net debt figures are calculated using the average exchange rates used to calculate the EBITDA figures.

Non-IFRS Measure: Net debt and Net debt/Adjusted EBITDA

   
Millions of Euro
  June 30,
2012(2)

  Dec. 31,
2011(2)

 
   

Long-term debt

    2,462.4     2,244.6  

(+)

             

Current portion of long-term debt

   
722.5
   
498.3
 

(+)

             

Bank overdrafts

   
116.5
   
193.8
 

(+)

             

Cash

   
(1,137.5

)
 
(905.1

)

(-)

             

Net debt

   
2,163.9
   
2,031.6
 

(=)

             

LTM Adjusted EBITDA

   
1,261.9
   
1,135.9
 

Net debt/LTM Adjusted EBITDA

   
1.7

x
 
1.8

x

Net debt @ avg. exchange rates(1)

   
2,097.0
   
1,944.4
 

Net debt @ avg. exchange rates(1)/LTM EBITDA

   
1.7

x
 
1.7

x
   
(1)
Net debt figures are calculated using the average exchange rates used to calculate the EBITDA figures.

(2)
The adjusted figures exclude the following measures:

(a)
an extraordinary gain of approximately €19 million related to the acquisition, in 2009, of a 40% stake in Multiopticas Internacional;

(b)
non-recurring costs related to Luxottica's 50th anniversary celebrations of approximately €12 million, including the adjustment relating to the grant of treasury shares to Group employees;

(c)
non-recurring restructuring and start-up costs in the Retail Division of approximately €11 million; and

(d)
non-recurring OPSM reorganization costs of approximately €9.5 million and €21.4 million in 2012.

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Table of Contents

FORWARD-LOOKING INFORMATION

        Throughout this report, management has made certain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 which are considered prospective. These statements are made based on management's current expectations and beliefs and are identified by the use of forward-looking words and phrases such as "plans," "estimates," "believes" or "belief," "expects" or other similar words or phrases.

        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 U.S. 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.

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Table of Contents

ITEM 2.    FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

   
(Amounts in thousands of Euro)
  Note
reference

  June 30, 2012
(unaudited)

  Of which related
parties (note 30)

  December 31, 2011
(audited)

  Of which related
parties (note 28)

 
   

ASSETS

                               

CURRENT ASSETS:

                               

Cash and cash equivalents

    6     1,137,510         905,100      

Accounts receivable

    7     962,798     1,221     714,033     4,168  

Inventories

    8     708,023         649,506      

Other assets

    9     208,846     39     230,850      
                         

Total current assets

          3,017,177     1,260     2,499,489     4,168  

NON-CURRENT ASSETS:

                               

Property, plant and equipment

    10     1,191,892         1,169,066      

Goodwill

    11     3,240,651         3,090,563      

Intangible assets

    11     1,407,292         1,350,921      

Investments

    12     8,971     4,387     8,754     391  

Other assets

    13     136,558     2,431     147,625     2,358  

Deferred tax assets

    14     199,438         202,206      
                         

Total non-current assets

          6,184,802     6,818     5,969,135     2,749  
                         

TOTAL ASSETS

          9,201,979     8,078     8,468,624     6,917  
   

LIABILITIES AND STOCKHOLDERS' EQUITY

                         

CURRENT LIABILITIES:

                               

Short-term borrowings

    15     116,535         193,834      

Current portion of long-term debt

    16     722,471         498,295      

Accounts payable

    17     628,528     15,353     608,327     18,004  

Income taxes payable

    18     79,285         39,859      

Short term provisions for risks and other charges

    19     70,081         53,337      

Other liabilities

    20     612,404     61     579,595     2,568  
                         

Total current liabilities

          2,229,305     15,413     1,973,247     20,572  

NON-CURRENT LIABILITIES:

                               

Long-term debt

    21     2,462,397         2,244,583      

Employee benefits

    22     224,898         197,675      

Deferred tax liabilities

    23     268,740         280,842      

Long term provisions for risks and other charges

    24     99,523         80,400      

Other liabilities

    25     65,918         66,756      
                         

Total non-current liabilities

          3,121,476     0     2,870,256      

STOCKHOLDERS' EQUITY:

                               

Luxottica Group stockholders' equity

    26     3,838,417         3,612,928      

Non-controlling Interests

    27     12,782         12,192      
                         

Total stockholders' equity

          3,851,199     0     3,625,120      
                         

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY

    9,201,979     15,413     8,468,624     20,572  

 

 

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Table of Contents

CONSOLIDATED STATEMENT OF INCOME

   
(Amounts in thousands of Euro)(1)
  Note
reference

  1 Half 2012
(unaudited)

  Of which related
parties
(note 30)

  1 Half 2011
(unaudited)

  Of which related
parties
(note 28)

 
   

Net sales

    28     3,670,358     855     3,189,646     5,484  

Cost of sales

          1,229,042     23,785     1,097,127     21,855  

of which non—recurring

    34     1,344              
                         

Gross profit

          2,441,316     (22,930 )   2,092,519     (16,371 )
                         

Selling

    28     1,134,419         980,366     9  

of which non—recurring

    34     17,100              

Royalties

    28     68,104     683     57,052     158  

Advertising

    28     225,407     44     203,673     48  

General and administrative

    28     444,238     34     367,194     66  

of which non—recurring

    34     2,988              

Total operating expenses

          1,872,168     761     1,608,285     281  
                         

Income from operations

          569,149     (23,691 )   484,235     (16,652 )
                         

Other income/(expense)

                               

Interest income

    28     11,895         7,235      

Interest expense

    28     (72,988 )       (60,434 )    

Other—net

    28     (489 )       (2,896 )   (9 )
                         

Income before provision for income taxes

          507,567     (23,691 )   428,140     (16,661 )
                         

Provision for income taxes

    28     (178,077 )       (147,221 )    
                         

Net income

          329,490         280,919      
                             

Of which attributable to:

                               

—Luxottica Group stockholders

          326,321         276,781      

—Non-controlling interests

          3,168         4,138      
                             

NET INCOME

          329,489         280,919      
                             

Weighted average number of shares outstanding:

                               

Basic

          463,228,972         460,118,653      

Diluted

          465,560,791         462,153,860      

EPS:

                               

Basic

          0.70         0.60      

Diluted

          0.70         0.60      

 

 
(1)
Except per share data

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Table of Contents

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

   
 
   
  1 Half 2012
(unaudited)

  1 Half 2011
(unaudited)

 
 
   
  (Amounts in thousands of Euro)
 
   

Net income

          329,489     280,919  

Other comprehensive income:

                   

Cash flow hedge—net of tax of Euro 2.5 million and 5.3 million as of June 30, 2012 and June 30, 2011, respectively.

          10,435     11,886  

Currency translation differences

          74,364     (183,405 )

Actuarial gain/(loss) on defined benefit plans—net of tax of Euro 10.7 million and Euro 0.2 million as of June 30, 2012 and June 30, 2011.

    22     (18,544 )   339  
                 

Total other comprehensive income—net of tax

          66,255     (171,180 )
                 

Total comprehensive income for the period

          395,745     109,739  
                 

Attributable to:

                   

—Luxottica Group stockholders' equity

          392,827     107,416  

—Non-controlling interests

          2,918     2,323  
                 

Total comprehensive income for the period

          395,745     109,739  

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Table of Contents


CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

FOR THE PERIODS ENDED JUNE 30, 2012 AND 2011 (UNAUDITED)

   
 
  Capital stock    
   
   
   
   
   
   
   
 
 
  Legal
reserve

 

  Additional
paid-in
capital
 

  Retained
earnings

 

  Stock options
reserve

 

  Translation
of foreign
operations
and other

  Treasury
shares

 

  Stockholders'
equity

 

  Non-
controlling
interests
 

 
 
  Number of
shares

  Amount
 

 
 

                            Note 26                             Note 27  

 
 

    (Amounts in thousands of Euro, except share data)  
   

Balance as of January 1, 2011

    466,077,210     27,964     5,578     218,823     3,129,786     159,184     (172,431 )   (112,529 )   3,256,375     13,029  
                                           

Total Comprehensive Income as of June 30, 2011

                    289,006         (181,590 )       107,416     2,323  
                                           

Exercise of Stock Options

    801,133     48         11,488                     11,536      

Non-cash Stock based compensation net of tax effect of Euro 1.3 million.

                        20,514             20,514      

Investment in Treasury shares

                                (10,473 )   (10,473 )    

Dividends (0.44 Euro per ordinary share)

                    (202,524 )               (202,524 )   (2,044 )

Allocation of Legal Reserve

            22         (22 )                    
                                           

Balance as of June 30, 2011

    466,878,343     28,012     5,600     230,311     3,216,247     179,698     (354,021 )   (123,002 )   3,182,845     13,308  
                                           
   

Balance as of January 1, 2012

    467,351,677     28,041     5,600     237,015     3,355,931     203,739     (99,980 )   (117,418 )   3,612,928     12,192  
                                           

Total Comprehensive Income as of June 30, 2012

                    318,213         74,614         392,827     2,918  
                                           

Exercise of Stock Options

    2,370,085     142         35,094                     35,236      

Non-cash Stock based compensation

                        19,523             19,523      

Excess tax benefit on Stock Options

                5,288                     5,288      

Granting of treasury shares to employees

                    (25,489 )           25,489          

Dividends (0.49 Euro per ordinary share)

                    (227,386 )               (227,386 )   (2,328 )

Allocation of Legal Reserve

            23         (23 )                    
                                           

Balance as of June 30, 2012

    469,721,762     28,183     5,623     277,397     3,421,246     223,262     (25,366 )   (91,929 )   3,838,417     12,782  
                                           
   

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CONSOLIDATED STATEMENT OF CASH FLOWS

   
(Amounts in thousands of Euro)
  Note reference
  1 Half 2012
(unaudited)

  1 Half 2011
(unaudited)

 
   

Net income

          507,567     428,140  

Stock-based compensation

    35     19,523     19,191  

Depreciation and amortization

    10/11     170,649     150,905  

Net loss fixed assets and other

    10     18,675     6,693  

Financial charges

          72,988     60,434  

Other non-cash items(*)

          15,314     (146 )

Changes in accounts receivable

         
(229,194

)
 
(179,746

)

Changes in inventories

          (30,532 )   (9,504 )

Changes in accounts payable

          (479 )   (40,045 )

Changes in other assets/liabilities

          (6,712 )   (7,193 )

Total adjustments

         
30,232
   
589
 

Cash provided by operating activities

         
537,799
   
428,728
 

Interest paid

         
(57,328

)
 
(60,857

)

Tax paid

          (108,238 )   (95,571 )

Net cash provided by operating activities

         
372,233
   
272,300
 

Property, plant and equipment:

                   

—Additions

    10     (91,354 )   (131,582 )

Purchases of businesses—net of cash acquired(**)

    4     (56,071 )   (30,926 )

Additions to intangible assets

    11     (63,054 )    
                 

Cash used in investing activities

          (210,479 )   (162,508 )
   
(*)
Other non-cash items include the non-recurring expense related to the reorganization of the Australian retail business of Euro 15.5 million (Euro 0.0 million in 2011), and other non-cash items of Euro 0.6 million (Euro (0.1) million in 2011).

(**)
In the first six months of 2012, purchases of businesses—net of cash acquired include the purchase of 80% of Tecnol for Euro 53.1 million and other acquisitions for Euro 3.0 million.

For the same period of 2011, purchases of businesses—net of cash acquired include (i) two retail chains in Mexico for Euro 19.5 million, (ii) of one retail chain in Australia for Euro 6.0 million and (iii) other acquisitions for Euro 5.4 million.

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CONSOLIDATED STATEMENT OF CASH FLOWS

   
 
  Note reference
  1 Half 2012
(unaudited)

  1 Half 2011
(unaudited)

 
 
   
  (Amounts in thousands of Euro)
 
   

Long-term debt:

                   

—Proceeds

    21     508,369      

—Repayments

    21     (176,711 )   (95,196 )

 

                   

Short-term debt:

                   

—Proceeds

              38,361  

—Repayments

          (79,732 )    

Exercise of stock options

   
26
   
35,238
   
11,537
 

Sale of treasury shares

         
   
(10,473

)

Dividends

   
32
   
(229,714

)
 
(204,568

)
                 

Cash used in financing activities

          57,450     (260,339 )
                 

Increase (decrease) in cash and cash equivalents

          219,204     (150,547 )
                 

Cash and cash equivalents, beginning of the period

          905,100     679,852  
                 

Effect of exchange rate changes on cash and cash equivalents

          13,205     (20,908 )
                 

Cash and cash equivalents, end of the period

          1,137,510     508,397  
   

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Luxottica Group S.p.A.

Headquarters and registered office • Via C. Cantù 2—20123 Milan, Italy
Capital Stock: € 28,183,305.72
authorized and issued

        


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of JUNE 30, 2012
(UNAUDITED)

1.  BACKGROUND

        Luxottica Group S.p.A. (hereinafter the "Company" or together with its consolidated subsidiaries, the "Group") is a company listed on Borsa Italiana and the New York Stock Exchange with its registered office located at Via C. Cantù 2, Milan (Italy), organized under the laws of the Republic of Italy.

        The Company is controlled by Delfin S.à r.l., based in Luxembourg. The chairman of the Board of Directors of the Company, Leonardo Del Vecchio, controls Delfin S.à r.l.

        The Company's Board of Directors, at its meeting on July 26, 2012, approved the Group's interim condensed consolidated financial statements as of June 30, 2012 (hereinafter referred to as the "Financial Report") for publication.

        The financial statements included in this Financial Report are unaudited.

2.  BASIS OF PREPARATION

        This Financial Report has been prepared in accordance with article 154-ter of the Legislative Decree No. 58 of February 24, 1998 and subsequent modifications and in accordance with the CONSOB Issuers Regulation in compliance with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and endorsed by the European Union in accordance with the regulation (CE) n. 1606/2002 of the European Parliament and of the Council of July 19, 2002. Furthermore, this financial report has been prepared in accordance with International Accounting Standard ("IAS") 34—Interim Financial Reporting, and of the provisions which implement Article 9 of Legislative Decree no. 38/2005.

        This unaudited Financial Report should be read in connection with the consolidated financial statements as of December 31, 2011, which were prepared in accordance with IFRS.

        In accordance with IAS 34, the Group has chosen to publish a set of condensed financial statements in its financial report as of June 30, 2012.

        The principles and standards used in the preparation of this unaudited Financial Report are consistent with those used in preparing the audited consolidated financial statements as of December 31, 2011, except as described in Note 3 "New Accounting Principles", and taxes on income which are accrued using the tax rate that would be applicable to expected total annual profit.

        In particular, this Financial Report has been prepared on a going concern basis. Management believes that there are no indicators that may cast significant doubt upon the Group's ability to continue as a going concern.

        The consolidated financial statements in this Financial Report are composed of the consolidated statements of financial position, the consolidated statements of income, the consolidated statements of comprehensive income, the consolidated statements of stockholders' equity, the consolidated statements of cash flows and these Notes to the Interim Consolidated Financial Statements as of June 30, 2012.

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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

2.  BASIS OF PREPARATION (Continued)

        The Group also applied the CONSOB resolution n. 15519 of July 19, 2006 and the CONSOB communication n. 6064293 of July 28, 2006.

        In order to provide the reader of this Financial Report with a meaningful comparison of the information included in the consolidated financial statements as of June 30, 2012, the Group implemented certain changes reflected in the Consolidated Statement of Financial Position. Certain prior year comparative information in the financial statements and notes has been reclassified to conform to the current year presentation.

        The preparation of an interim report requires management to use estimates and assumptions that affect the reported amounts of revenue, costs, assets and liabilities, as well as disclosures relating to contingent assets and liabilities at the reporting date. Results published on the basis of such estimates and assumptions could vary from actual results that may be realized in the future.

        These measurement processes and, in particular, those that are more complex, such as the calculation of impairment losses on non-current assets, and the actuarial calculations necessary to calculate certain employee benefits liabilities, are generally carried out only when the audited consolidated financial statements for the fiscal year are prepared, unless there are indicators which require updates to estimates.

3.  NEW ACCOUNTING PRINCIPLES

        New and amended accounting standards and interpretations must be adopted in the first interim financial statements issued after the applicable effective date. There are no new IFRSs or IFRICs (International Financial Reporting Interpretations Committee) that are effective for the first time for this interim period that would be expected to have a material impact on the Group.

        In addition to the new accounting principles indicated in Note 3 "New Accounting Principles" of the notes to the consolidated financial statements as of December 31, 2011, on May 17, 2012 the IASB issued the Improvements to IFRS, which are summarized below. The amendments have not yet been endorsed by the European Union as of the date this Financial Report was authorized for issuance. The amendments are applicable to reporting periods beginning on or after January 1, 2013. Early adoption is permitted, however the Group has not elected to early adopt any of the following:

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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

3.  NEW ACCOUNTING PRINCIPLES (Continued)

4.  BUSINESS COMBINATIONS

        On January 20, 2012, the Group successfully completed the acquisition of 80% of share capital of the Brazilian entity Grupo Tecnol Ltd ("Tecnol"). The remaining 20% will be acquired evenly (five percent per year) starting from 2013 over a four year period. The consideration paid for the 80% was approximately 143.7 million Brazilian Reais (approximately Euro 59.4 million). Additionally the Group assumed Tecnol net debt amounting to approximately Euro 31.5 million. The acquisition furthers the Group's strategy of continued expansion of its wholesale business and acquiring a manufacturing facility in South America.

        The Company uses various methods to calculate the fair value of the Tecnol assets acquired and the liabilities assumed. Tecnol assets and liabilities have been calculated on an estimated basis, since, as of the date of this Financial Report was authorized for issuance; certain valuation processes have not been concluded. In accordance with IFRS 3, the fair value of the net assets and liabilities assumed will be defined within 12 months from the acquisition date.

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Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

4.  BUSINESS COMBINATIONS (Continued)

        The following table summarizes the consideration paid, the fair value of assets acquired and liabilities assumed at the acquisition date (in thousands of Euro):

   

Cash paid for 80% of share capital of Tecnol

    59,379  

Payable for the acquisition of the residual 20%

    14,845  
       

Total consideration

    74,224  
       

Recognized amount of identifiable assets and liabilities assumed

       

Cash and cash equivalents

    6,297  

Accounts receivable*

    12,642  

Inventory

    20,034  

Other current receivables

    4,825  

Fixed assets

    10,072  

Trademarks and other intangible assets

    36,109  

Other long term receivables

    182  

Accounts payable

    (2,939 )

Other current liabilities

    (23,262 )

Income tax payable

    (447 )

Long-term debt

    (31,789 )

Deferred income tax payable

    (11,406 )

Provisions for risks

    (24,827 )

Other long-term liabilities

    (2,071 )
       

Total net identifiable assets

    (6,580 )
       

Provisional goodwill

   
80,803
 
       

Total

    74,224  
       
   
*
Accounts receivable are presented net of a bad debt provision of Euro 953 thousand.

        The above-mentioned goodwill is mainly related to the expected growth of Tecnol, taking into account the Group's strategy of expanding its wholesale business in South America. Acquisition related costs were approximately Euro 1.2 million.

5.  SEGMENT REPORTING

        In accordance with IFRS 8—Operating Segments the segment reporting schedules are provided below using a reporting format which includes two market segments: the first relates to Manufacturing and Wholesale Distribution ("Wholesale"), while the second relates to Retail Distribution ("Retail").

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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

5.  SEGMENT REPORTING (Continued)

        The following table provides information by business segment, which management considers necessary to assess the Group's performance and to make future determinations relating to the allocation of resources.

   
(Amounts in thousands of Euro)
  Manufacturing
and
wholesale
distribution

  Retail
distribution

  Inter-segment
transactions
and
corporate
adjustments(c)

  Consolidated
 
   

Three months ended June 30, 2012 (unaudited)

                         

Net sales(a)

    1,514,999     2,155,359         3,670,358  

Income from operations(b)

    380,642     272,619     (84,113 )   569,148  

Capital expenditures

    58,674     105,205         163,878 1

Depreciation and amortization

    47,599     80,424     42,627     170,649  

Three months ended June 30, 2011 (unaudited)

                         

Net sales(a)

    1,345,101     1,844,545         3,189,646  

Income from operations(b)

    336,328     226,562     (78,655 )   484,234  

Capital expenditures

    46,169     85,413         131,582  

Depreciation and amortization

    41,523     69,313     40,069     150,906  
   
(a)
Net sales of both the Manufacturing and Wholesale Distribution segment and the Retail Distribution segment include sales to third-party customers only.

(b)
Income from operations of the Manufacturing and Wholesale Distribution segment is related to net sales to third-party customers only, excluding the "manufacturing profit" generated on the inter-company sales to the Retail Distribution segment. Income from operations of the Retail Distribution segment is related to retail sales, considering the cost of goods acquired from the Manufacturing and Wholesale Distribution segment at manufacturing cost, thus including the relevant "manufacturing profit" attributable to those sales.

(c)
Inter-segment transactions and corporate adjustments include corporate costs not allocated to a specific segment and amortization of acquired intangible assets.

   


1
Capital expenditures in 2012 include capital leases of the Retail Division of Euro 18.2 million. Capital expenditures excluding the above-mentioned additions were Euro 145.7 million.

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Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CURRENT ASSETS

6.  CASH AND CASH EQUIVALENTS

   
(Amounts in thousands of Euro)
  As of
June 30,
2012
(unaudited)

  As of
December 31,
2011
(audited)

 
   

Cash at bank and post office

    1,127,838     891,406  

Checks

    6,761     9,401  

Cash and cash equivalents on hand

    2,911     4,293  
           

Total

    1,137,510     905,100  
           
   

7.  ACCOUNTS RECEIVABLE

   
(Amounts in thousands of Euro)
  As of
June 30,
2012
(unaudited)

  As of
December 31,
2011
(audited)

 
   

Accounts receivable

    1,000,251     749,992  

Bad debt fund

    (37,453 )   (35,959 )
           

Total

    962,798     714,033  
           
   

        The above are exclusively trade receivables and are recognized net of allowances to adjust their carrying amount to estimated realizable value. They are all due within 12 months.

8.  INVENTORIES

   
(Amounts in thousands of Euro)
  As of
June 30,
2012
(unaudited)

  As of
December 31,
2011
(audited)

 
   

Raw materials

    150,938     128,909  

Work in process

    56,780     49,018  

Finished goods

    604,027     562,141  

Less: inventory obsolescence reserves

    (103,723 )   (90,562 )
           

Total

    708,023     649,506  
           
   

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Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

9.  OTHER ASSETS

   
(Amounts in thousands of Euro)
  As of
June 30,
2012
(unaudited)

  As of
December 31,
2011
(audited)

 
   

Sales taxes receivable

    20,723     18,785  

Short-term borrowing

    1,005     1,186  

Accrued income

    2,756     1,573  

Other financial assets

    45,449     38,429  

Total financial assets

    69,933     59,973  

Income taxes receivable

   
12,729
   
59,795
 

Advances to suppliers

    17,624     12,110  

Prepaid expenses

    84,598     69,226  

Other assets

    23,961     29,746  

Total other assets

    138,913     170,877  
           

Total other current assets

    208,846     230,850  
           
   

        Other financial assets included amounts (i) recorded in the North American Retail Division of Euro 13.2 million as of June 30, 2012 and December 31, 2011, respectively, (ii) recorded in Oakley of Euro 8.4 million (Euro 5.4 million as of December 31, 2011), and (iii) derivative financial assets of Euro 0.7 million as of June 30, 2012 and December 31, 2011. The remaining portion of the balance is distributed among the Group's various subsidiaries.

        The decrease in income tax receivable is mainly due to the utilization, in 2012, by certain U.S. subsidiaries of the receivable balance as of December 31, 2011.

        The net book value of financial assets is approximately equal to their fair value and corresponds to the maximum exposure of the credit risk. The Group has no guarantees or other instruments aimed at diminishing credit risk.

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Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

NON-CURRENT ASSETS

10.  PROPERTY, PLANT AND EQUIPMENT

        Changes in items of Property, plant and equipment during the first six months of 2012 are illustrated below:

   
(Amounts in thousands of Euro)
  Land and
buildings,
including
leasehold
improvements

  Machinery
and
equipment

  Aircraft
  Other
equipment

  Total
 
   

Balance as of January 1, 2012

                               

Historical cost

    900,367     983,164     38,087     586,980     2,508,598  

Accumulated depreciation

    (405,526 )   (613,127 )   (8,776 )   (312,103 )   (1,339,532 )
                       

Balance as of January 1, 2012

    494,841     370,037     29,311     274,877     1,169,066  
                       

Increases

    22,530     55,724         31,326     109,580  

Decreases

    (7,149 )           (11,526 )   (18,675 )

Business Combinations

    949     7,675         1,448     10,072  

Translation differences and other

    17,895     12,001         (4,664 )   25,232  

Depreciation expense

    (28,291 )   (44,697 )   (777 )   (29,619 )   (103,384 )
                       

Balance as of June 30, 2012

    500,776     400,740     28,534     261,842     1,191,892  
                       

Historical cost

    932,174     1,068,060     38,087     593,317     2,631,638  

Accumulated depreciation

    (431,398 )   (667,320 )   (9,553 )   (331,475 )   (1,439,746 )
                       

Balance as of June 30, 2012

    500,776     400,740     28,534     261,842     1,191,892  
   

        Depreciation of Euro 103.4 million (Euro 108.7 million in the same period in 2011) was included in the consolidated statement of income as follows: (i) cost of sales (Euro 34.9 million, compared to Euro 30.6 million in the same period in 2011), (ii) selling expenses (Euro 55.4 million, compared to Euro 51.2 million in the same period in 2011), (iii) advertising expenses (Euro 1.9 million, compared to Euro 2.2 million in the same period in 2011) and (iv) general and administrative expenses (Euro 11.2 million, compared to Euro 24.7 million in the same period in 2011).

        Capital expenditures mainly relate to routine technology upgrades to the manufacturing structure, opening of new stores and the remodeling of older stores whose leases were extended during the period.

        Other equipment includes assets under construction of Euro 52.9 million at June 30, 2012 (Euro 54.5 million at December 31, 2011), mainly relating to the opening and renovation of North American retail stores.

        Leasehold improvements totaled Euro 170.0 million and Euro 230.4 million at June 30, 2012 and December 31, 2011, respectively.

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Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

11.  GOODWILL AND INTANGIBLE ASSETS

        Changes in intangible assets in the first six months of 2012 are illustrated below:

   
(thousands of Euro)
  Goodwill
  Trade names
and
Trademarks

  Distributor
network

  Customer
relations,
contracts
and lists

  Franchise
agreements

  Other
  Total
 
   

Balance as of January 1, 2012

                                           

Historical cost

    3,090,563     1,576,008     287     229,733     22,181     464,712     5,383,484  

Accumulated amortization

        (660,958 )   (270 )   (68,526 )   (7,491 )   (204,756 )   (942,001 )
                               

Balance as of January 1, 2012

    3,090,563     915,050     17     161,208     14,690     259,956     4,441,484  
                               

Increases

        68                 62,986     63,054  

Decreases

                        (489 )   (489 )

Intangible assets from business acquisitions

    82,971     12,515         19,342         4,216     119,045  

Translation differences and other

    67,117     19,622     1     3,461     391     1,521     92,113  

Amortization expense

        (35,239 )   (9 )   (7,483 )   (553 )   (23,981 )   (67,265 )
                               

Balance as of June 30, 2012

    3,240,651     912,017     9     176,529     14,528     304,209     4,647,944  
                               

Of which

                                           

Historical cost

    3,240,651     1,611,482     296     254,629     22,796     522,148     5,652,001  

Accumulated amortization

        (699,465 )   (287 )   (78,099 )   (8,268 )   (217,939 )   (1,004,058 )
                               

Balance as of June 30, 2012

    3,240,651     912,017     9     176,529     14,528     304,209     4,647,944  
   

        The increase in goodwill and intangible assets from business acquisitions mainly relates to the acquisition of Tecnol in January 2012, which accounts for Euro 80.8 million and Euro 36.1 million of the increase in goodwill and intangible assets, respectively. For additional details on the acquisition please refer to Note 4—"Business Combinations."

        The increase in other intangible assets mainly refers to the continued roll-out of a new IT platform, which was originally introduced in 2008.

12.  INVESTMENTS

        This item amounted to Euro 9.0 million (Euro 8.8 million at December 31, 2011) and mainly included the investment in the associate company Eyebiz Laboratories Pty Limited of Euro 4.4 million (Euro 4.0 million at December 31, 2011) and other minor investments.

13.  OTHER ASSETS

        Other non-current assets amounted to Euro 136.6 million (Euro 147.6 million at December 31, 2011) and were primarily comprised of security deposits of Euro 34.0 million (Euro 32.9 million at

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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

13.  OTHER ASSETS (Continued)

December 31, 2011) and advances the Group paid to certain licensees for future contractual minimum royalties, amounting to Euro 79.2 million (Euro 88.3 million at December 31, 2011).

14.  DEFERRED TAX ASSETS

        Deferred tax assets showed a balance of Euro 199.4 million (Euro 202.2 million at December 31, 2011). Deferred tax assets primarily related to temporary differences between the tax values and carrying amounts of inventories, fixed and intangible assets, pension funds, tax losses and provisions for risks and other charges.

LIABILITIES AND EQUITY

15.  SHORT-TERM BORROWINGS

        Bank overdrafts at June 30, 2012 reflected bank overdrafts and short term borrowings with various banks. The interest rates on these credit lines are floating, and the credit lines may be used, if necessary, to obtain letters of credit.

16.  CURRENT PORTION OF LONG-TERM DEBT

        This item consists of the current portion of loans granted to the Group, as further described below in Note 21—"Long-term Debt."

17.  ACCOUNTS PAYABLE

        Accounts payable consists of invoices received and not yet paid at the reporting date, in addition to invoices to be received, accounted for on an accrual basis.

        The balance, which is due in its entirety within 12 months, is detailed below:

   
(Amounts in thousands of Euro)
  As of
June 30, 2012
(unaudited)

  As of
December 31, 2011
(audited)

 
   

Accounts payable

    447,922     452,546  

Invoices to be received

    180,606     155,781  
           

Total

    628,528     608,327  
           
   

40


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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

18.  INCOME TAXES PAYABLE

        Income taxes payable include liabilities for current taxes which are certain and determined.

   
(Amounts in thousands of Euro)
  As of
June 30, 2012
(unaudited)

  As of
December 31, 2011
(audited)

 
   

Current year income taxes payable fund

    99,467     59,310  

Income taxes advance payment

    (20,182 )   (19,451 )
           

Total

    79,285     39,859  
           
   

19.  SHORT TERM PROVISIONS FOR RISKS AND OTHER CHARGES

        The balance is detailed below:

   
 
  Legal risk
  Self-insurance
  Tax provision
  Other risks
  Returns
  Total
 
   

Balance as of December 31, 2011

    4,899     5,620     1,796     9,927     31,094     53,337  
                           

Increases

    821     4,252     9     24,831     15,298     45,211  

Decreases

    (3,668 )   (4,431 )   (131 )   (7,854 )   (11,181 )   (27,265 )

Business combinations

                         

Foreign translation difference and other movements

    40     245     47     (11 )   (1,523 )   (1,202 )
                           

Balance as of June 30, 2011

    2,092     5,686     1,721     26,893     33,689     70,081  
   

        Other risks mainly includes provisions for licensing expenses and advertising expenses required by existing license agreements of Euro 12.8 million (Euro 12.0 million as of June 30, 2011), which are based upon advertising expenses that the Group is required to incur under the license agreements, and accruals related to the reorganization of the retail business in Australia of Euro 9.4 million (for further details please refer to note 34 "Non-recurring transactions").

        The Company is self-insured for certain losses relating to workers' compensation, general liability, auto liability, and employee medical benefits for claims filed and for claims incurred but not reported. The Company's liability is estimated on an undiscounted basis using historical claims experience and industry averages; however, the final cost of the claims may not be known for over five years.

        Legal risk includes provisions for various litigated matters that have occurred in the ordinary course of business.

41


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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

20.  OTHER LIABILITIES

   
(Amounts in thousands of Euro)
  As of
June 30, 2012
(unaudited)

  As of
December 31, 2011
(audited)

 
   

Premiums and discounts to suppliers

    46,557     47,519  

Sales commissions

    1,017     904  

Leasing rental

    25,568     23,181  

Insurance

    10,122     9,893  

Sales taxes payable

    50,645     31,740  

Salaries payable

    213,347     204,481  

Due to social security authorities

    28,104     28,678  

Sales commissions payable

    9,774     9,733  

Royalties payable

    3,039     2,218  

Derivative financial liabilities

    7,195     15,824  

Other financial liabilities

    164,466     148,905  
           

Total financial liabilities

    559,833     523,075  
           

Deferred income

    2,589     3,626  

Advances from customers

    40,704     47,501  

Other liabilities

    9,279     5,393  
           

Total liabilities

    52,572     56,520  
           

Total other current liabilities

    612,404     579,595  
   

21.  LONG-TERM DEBT

        The long-term debt is as follows (amount in thousands of Euro):

   
(thousands of Euro)
  As of
June 30,
2012
(unaudited)

  As of
December 31,
2011
(audited)

 
   

Luxottica Group S.p.A. credit agreement with various financial institutions (a)

    427,324     487,363  

Senior unsecured guaranteed notes (b)

    1,751,935     1,226,246  

Credit agreement with various financial institutions (c)

    226,335     225,955  

Credit agreement with various financial institutions for Oakley acquisition (d)

    714,928     772,743  

Other loans with banks and other third parties, interest at various rates, payable in installments through 2014 (e)

    64,346     30,571  
           

Total

    3,184,868     2,742,878  
           

Less: Current maturities

    (722,471 )   (498,295 )
           

Long-Term Debt

    2,462,397     2,244,583  
   

42


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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

21.  LONG-TERM DEBT (Continued)

        Please refer to the schedules below for the roll-forward of long term debts as of June 30, 2012 and 2011:

   
 
  Luxottica
Group S.p.A.
credit
agreement
with various
financial
institutions (a)

  Senior
unsecured
guaranteed
notes (b)

  Credit
agreement
with various
financial
institutions (c)

  Credit
agreement
with various
financial
institutions
for Oakley
acquisition (d)

  Other loans
with banks
and other
third parties,
interest at
various rates,
payable in
installments
through 2014 (e)

  Total
 
   

Balance as of January 1, 2012

    487,363     1,226,246     225,955     772,743     30,571     2,742,878  
                           

Proceeds from new and existing loans

        500,000             39,024     539,024  

Repayments

    (60,000 )       (5,969 )   (77,133 )   (33,610 )   (176,711 )

loans assumed in business combinations

                    31,509     31,509  

Amortization of fees and interests

    (39 )   8,314     247     194     (4,938 )   3,778  

Foreign translation difference

        17,375     6,102     19,124     1,790     44,390  

Balance as of June 30, 2012

    427,324     1,751,935     226,335     714,928     64,346     3,184,868  
   


   
 
  Luxottica
Group S.p.A.
credit
agreement
with various
financial
institutions (a)

  Senior
unsecured
guaranteed
notes (b)

  Credit
agreement
with various
financial
institutions (c)

  Credit
agreement
with various
financial
institutions
for Oakley
acquisition (d)

  Other loans
with banks
and other
third parties,
interest at
various rates,
payable in
installments
through 2014 (e)

  Total
 
   

Balance as of January 1, 2011

    545,552     943,112     242,236     897,484     4,252     2,632,636  
                           

Proceeds from new and existing loans

                         

Repayments

            (22,697 )   (71,263 )   (1,235 )   (95,196 )

Loans assumed in business combinations

                         

Amortization of fees and interests

    1,237     10,552     24     131         11,943  

Foreign translation difference

        (26,119 )   (17,694 )   (65,713 )   (200 )   (109,726 )
                           

Balance as of June 30, 2011

    546,789     927,545     201,868     760,639     2,817     2,439,658  
   

        (a)   On May 29, 2008, the Company entered into a Euro 250.0 million revolving credit facility, guaranteed by its subsidiary, Luxottica U.S. Holdings Corp. ("US Holdings"), with Intesa Sanpaolo S.p.A., as agent, and Intesa Sanpaolo S.p.A., Banca Popolare di Vicenza S.c.p.A. and Banca Antonveneta S.p.A., as lenders. The final maturity of the credit facility is May 29, 2013. This revolving credit facility requires repayments of equal quarterly installments of Euro 30.0 million of principal which started on August 29, 2011, with a repayment of Euro 40.0 million on the final maturity date of May 29, 2013. Interest accrues at EURIBOR (as defined in the agreement) plus a margin between 0.40 percent and 0.60 percent based on the "Net Debt/EBITDA" ratio, as defined in the agreement (1.447 percent as of June 30, 2012). As of June 30, 2012, Euro 130.00 million was borrowed under this credit facility. The credit facility contains certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012.

43


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

21.  LONG-TERM DEBT (Continued)

In June and July 2009, the Company entered into eight interest rate swap transactions with an aggregate initial notional amount of Euro 250.0 million with various banks ("Intesa Swaps"). The notional amounts of the Intesa Swaps decreases on a quarterly basis, following the amortization schedule of the underlying facility, which started on August 29, 2011. These Intesa Swaps will expire on May 29, 2013. The Intesa Swaps were entered into as a cash flow hedge on the Intesa Sanpaolo S.p.A. credit facility discussed above. The Intesa Swaps exchange the floating rate of EURIBOR for an average fixed rate of 2.252 percent per annum. The ineffectiveness of cash flow hedges was tested at the inception date and at least every three months. The results of the tests indicated that the cash flow hedges are highly effective.

On November 11, 2009, the Company entered into a Euro 300.0 million Term Facility Agreement, guaranteed by its subsidiaries U.S. Holdings and Luxottica S.r.l., with Mediobanca—Banca di Credito Finanziario S.p.A., as agent, and Mediobanca—Banca di Credito Finanziario S.p.A., Deutsche Bank S.p.A., Calyon S.A. Milan Branch and Unicredit Corporate Banking S.p.A., as lenders. The final maturity of the Term Facility was November 30, 2012 prior to the renegotiation discussed below. Interest accrued at EURIBOR (as defined in the agreement) plus a margin between 1.75 percent and 3.00 percent based on the "Net Debt/EBITDA" ratio, as defined in the agreement. In November 2010, the Company renegotiated this credit facility. The final maturity of the Term Facility is November 30, 2014. Interest accrues at EURIBOR (as defined in the agreement) plus a margin between 1.00 percent and 2.25 percent based on the "Net Debt/EBITDA" ratio (1.6405 percent as of June 30, 2012). As of June 30, 2012, Euro 300.0 million was borrowed under this credit facility.

        (b)   On July 1, 2008, U.S. Holdings closed a private placement of U.S. $275.0 million senior unsecured guaranteed notes (the "2008 Notes"), issued in three series (Series A, Series B and Series C). The aggregate principal amounts of the Series A, Series B and Series C Notes are U.S. $20.0 million, U.S. $127.0 million and U.S. $128.0 million, respectively. The Series A Notes mature on July 1, 2013, the Series B Notes mature on July 1, 2015 and the Series C Notes mature on July 1, 2018. Interest on the Series A Notes accrues at 5.96 percent per annum, interest on the Series B Notes accrues at 6.42 percent per annum and interest on the Series C Notes accrues at 6.77 percent per annum. The 2008 Notes contain certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012. The proceeds from the 2008 Notes received on July 1, 2008 were used to repay a portion of the Bridge Loan Facility (described in (d) below).

On January 29, 2010, U.S. Holdings closed a private placement of U.S. $175.0 million senior unsecured guaranteed notes (the "January 2010 Notes"), issued in three series (Series D, Series E and Series F). The aggregate principal amounts of the Series D, Series E and Series F Notes are U.S. $50.0 million, U.S. $50.0 million and U.S. $75.0 million, respectively. The Series D Notes mature on January 29, 2017, the Series E Notes mature on January 29, 2020 and the Series F Notes mature on January 29, 2019. Interest on the Series D Notes accrues at 5.19 percent per annum, interest on the Series E Notes accrues at 5.75 percent per annum and interest on the Series F Notes accrues at 5.39 percent per annum. The January 2010 Notes contain certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012.

On September 30, 2010, the Company closed a private placement of Euro 100.0 million senior unsecured guaranteed notes (the "September 2010 Notes"), issued in two series (Series G and

44


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

21.  LONG-TERM DEBT (Continued)

Series H). The aggregate principal amounts of the Series G and Series H Notes are Euro 50.0 million and Euro 50.0 million, respectively. The Series G Notes mature on September 15, 2017 and the Series H Notes mature on September 15, 2020. Interest on the Series G Notes accrues at 3.75 percent per annum and interest on the Series H Notes accrues at 4.25 percent per annum. The September 2010 Notes contain certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012.

On November 10, 2010, the Company issued senior unsecured guaranteed notes to institutional investors (Eurobond November 10, 2015) for an aggregate principal amount of Euro 500.0 million. The notes mature on November 10, 2015 and interest accrues at 4.00 percent. The notes are listed on the Luxembourg Stock Exchange (ISIN XS0557635777). The notes were issued in order to exploit favorable market conditions and extend the average maturity of the Group's debt. On March 9, 2012, Standard & Poor's assigned the notes a credit rating of BBB+.

        On December 15, 2011, U.S. Holdings closed a private placement of U.S. $350 million of senior unsecured guaranteed notes ("Series I"). Interest on the Series I Notes accrues at 4.35 percent per annum. The Series I Notes mature on December 15, 2021. The Series I Notes contain certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012.

On March 19, 2012, the Company issued senior unsecured guaranteed notes to institutional investors (Eurobond March 19, 2019) for an aggregate principal amount of Euro 500.0 million. The notes mature on March 19, 2019 and interest accrues at 3.625 percent. The notes are listed on the Luxembourg Stock Exchange (ISIN XS0758640279). The notes were issued in order to take advantage of favorable market conditions and extend the average maturity of the Group's debt. On March 19, 2012, Standard & Poor's assigned the notes a credit rating of BBB+.

        (c)   On June 3, 2004, as amended on March 10, 2006, the Company and U.S. Holdings entered into a credit facility with a group of banks providing for loans in the aggregate principal amount of Euro 740.0 million and U.S. $325.0 million. The five-year facility consisted of three Tranches (Tranche A, Tranche B and Tranche C). The March 10, 2006 amendment increased the available borrowings to Euro 1,130.0 million and U.S. $325.0 million, decreased the interest margin and defined a new maturity date of five years from the date of the amendment for Tranche B and Tranche C. In February 2007, the Company exercised an option included in the amendment to the term and revolving facility to extend the maturity date of Tranches B and C to March 2012. In February 2008, the Company exercised an option included in the amendment to the term and revolving facility to extend the maturity date of Tranches B and C to March 2013. Tranche A, which was to be used for general corporate purposes, including the refinancing of existing Company debt as it matures, was a Euro 405.0 million amortizing term loan requiring repayment of nine equal quarterly installments of principal of Euro 45.0 million beginning in June 2007. Tranche A expired on June 3, 2009 and was repaid in full. Tranche B is a term loan of U.S. $325.0 million which was drawn upon on October 1, 2004 by U.S. Holdings to finance the purchase price of the acquisition of Cole National Corporation ("Cole"). Amounts borrowed under Tranche B will mature in March 2013. Tranche C is a Revolving Credit Facility of Euro 725.0 million-equivalent multi-currency (Euro/US dollar). Amounts borrowed under Tranche C may be repaid and reborrowed with all outstanding balances maturing in March 2013. The Company can select interest periods of one, two, three or six months with interest accruing on Euro-denominated loans based on the corresponding

45


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

21.  LONG-TERM DEBT (Continued)

EURIBOR rate and US dollar-denominated loans based on the corresponding LIBOR rate, both plus a margin between 0.20 percent and 0.40 percent based on the "Net Debt/EBITDA" ratio, as defined in the agreement. The interest rate on June 30, 2012 was 0.492 percent for Tranche B. The Company cancelled Tranche C effective April 27, 2012. The credit facility contains certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012. Under this credit facility, Euro 226.34 million was borrowed as of June 30, 2012.

During the third quarter of 2007, the Group entered into 13 interest rate swap transactions with an aggregate initial notional amount of U.S. $325.0 million with various banks ("Tranche B Swaps"). These swaps have expired on March 10, 2012. The Tranche B Swaps were entered into as a cash flow hedge on Tranche B of the credit facility discussed above. The Tranche B Swaps swap the LIBOR floating rate for an average fixed rate of 4.634 percent per annum. The ineffectiveness of cash flow hedges was tested at the inception date and at least every three months.

        (d)   On November 14, 2007, the Group completed the merger with Oakley for a total purchase price of approximately U.S. $2.1 billion. In order to finance the acquisition of Oakley, on October 12, 2007, the Company and US Holdings entered into two credit facilities with a group of banks providing for certain term loans and a short-term bridge loan (with an original principal balance of $500 million which was repaid and cancelled as of December 31, 2011) for an aggregate principal amount of U.S. $2.0 billion. The term loan facility is a term loan of U.S. $1.5 billion, with a five-year term, with options to extend the maturity on two occasions for one year each time. The term loan facility is divided into two facilities, Facility D and Facility E. Facility D is a U.S. $1.0 billion amortizing term loan requiring repayments of U.S. $50.0 million on a quarterly basis starting from October 2009, made available to U.S. Holdings, and Facility E consists of a bullet term loan in an aggregate amount of U.S. $500.0 million, made available to the Company. Interest accrues on the term loan at LIBOR plus 20 to 40 basis points based on "Net Debt to EBITDA" ratio, as defined in the facility agreement (0.830 percent for Facility D and 0.724 percent for Facility E on June 30, 2012). In September 2008, the Company exercised an option included in the agreement to extend the maturity date of Facilities D and E to October 12, 2013. These credit facilities contain certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2011. U.S. $900 million was borrowed under this credit facility as of June 30, 2012.

During the third quarter of 2007, the Group entered into ten interest rate swap transactions with an aggregate initial notional amount of U.S. $500.0 million with various banks ("Tranche E Swaps"). These swaps will expire on October 12, 2012. The Tranche E Swaps were entered into as a cash flow hedge on Facility E of the credit facility discussed above. The Tranche E Swaps exchange the floating rate of LIBOR for an average fixed rate of 4.260 percent per annum. The ineffectiveness of cash flow hedges was tested at the inception date and at least every three months. The results of the tests indicated that the cash flow hedges are highly effective.

During the fourth quarter of 2008 and the first quarter of 2009, U.S. Holdings entered into 14 interest rate swap transactions with an aggregate initial notional amount of U.S. $700.0 million with various banks ("Tranche D Swaps"), which began decreasing by U.S. $50.0 million every three months on April 12, 2011. The final maturity of these swaps will be October 12, 2012. The Tranche D Swaps were entered into as a cash flow hedge on Facility D of the credit facility discussed above. The Tranche D Swaps exchange the floating rate of LIBOR for an average fixed rate of 2.896 percent per annum. The ineffectiveness of

46


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

21.  LONG-TERM DEBT (Continued)

cash flow hedges was tested at the inception date and at least every three months. The results of the tests indicated that the cash flow hedges are highly effective.

        (e)   On April 17, 2012, the Company entered into a Euro 500 million revolving credit facility, guaranteed by its subsidiary, Luxottica srl with Bank of America Securities Limited, Citigroup Global Markets Limited, Crédit Agricole Corporate and Investment Bank—Milan Branch, Banco Santander S.A., The Royal Bank of Scotland PLC and Unicredit S.p.a. as lenders and with Unicredit AG Milan Branch as agent. The final maturity of the credit facility is March 10, 2017. As of June 30, 2012, there are no amounts outstanding under the new revolving credit facility. The credit facility contains certain financial and operating covenants. The Group was in compliance with those covenants as of June 30, 2012.

As of June 30, 2012, the Group had unused committed (revolving) credit lines for Euro 500 million.

        (f)    Other loans consist of several small credit agreements which are not material.

Long-term debt, including capital lease obligations, as of June 30, 2012 matures as follows:

(thousands of Euro)
   
 
   

2012

    364,088  

2013

    792,262  

2014

    300,000  

2015

    600,874  

2016 and subsequent years

    1,118,666  

Effect deriving from the adoption of the amortized cost method

    8,978  
       

Total

    3,184,868  
   

47


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

21.  LONG-TERM DEBT (Continued)

        The net financial position and disclosure required by the Consob communication n. DEM/6064293 dated July 28, 2006 and by the CESR recommendation dated February 10, 2005 "Recommendation for the consistent application of the European Commission regulation on Prospectus" is as follows:

   
 
  (Amounts in thousands of Euro)
  Notes
  June 30,
2012
unaudited

  December 31,
2011
audited

 
   

A

  Cash and cash equivalents     6     1,137,510     905,100  

B

  Other availabilities                

C

  Hedging instruments on foreign Exchange rates     9     678     668  

D

  Availabilities (A) + (B) + (C)           1,138,188     905,768  

E

 

Current Investments

         
       

F

 

Bank overdrafts

   
15
   
116,535
   
193,834
 

G

  Current portion of long-term debt     16     722,471     498,295  

H

  Hedging instruments on foreign Exchange rates     20     1,795     234  

I

  Hedging instruments on interest rates     20     5,400     12,168  

J

  Current Liabilities (F) + (G) + (H) + (I)           846,201     704,531  

K

 

Net Liquidity (J) – (E) – (D)

         
(291,987

)
 
(201,237

)

L

  Long-term debt     21     710,463     541,957  

M

  Notes payables     21     1,751,934     1,702,626  

N

  Hedging instruments on interest rates     25     2,303        

O

  Total Non-Current Liabilities (L) + (M) + (N)           2,464,700     2,253,133  

P

 

Net Financial Position (K) + (O)

         
2,172,713
   
2,051,896
 
   

        A reconciliation between the net financial position above and the net financial position presented in the Management Report is as follows:

   
 
  June 30,
2012

  December 31,
2011

 
   

Net Financial Position, as presented in the notes

    2,172,713     2,051,896  
           

Hedging instruments on foreign exchange rates

    678     668  

Hedging instruments on interest rates—ST

    (5,400 )   (12,168 )

Hedging instruments on foreign exchange rates

    (1,795 )   (234 )

Hedging instruments on interest rates—LT

    (2,303 )   (8,550 )
           

Net Financial Position

    2,163,894     2,031,612  
   

        Our net financial position with respect to related parties is not material.

48


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

22.  EMPLOYEE BENEFITS

        This item amounted to Euro 224.9 million as of June 30, 2012 (Euro 197.7 million at December 31, 2011). This item primarily includes liabilities related to the post-employment benefits of our Italian employees of Euro 39.9 million (Euro 37.7 million as of December 31, 2011) and U.S. employees of Euro 170.4 million (Euro 147.2 million as of December 31, 2011). The increase is mainly due to the reduction of the discount rate used for the actuarial calculation of the liability for employee benefits, and was partially offset by the increase in the fair value of plan assets.

23.  DEFERRED TAX LIABILITIES

        Deferred tax liabilities amounted to Euro 268.7 million and Euro 280.8 million as of June 30, 2012 and December 31, 2011, respectively. Deferred tax liabilities primarily relate to temporary differences between the tax values and carrying amounts of Property, plant and equipment and intangible assets.

24.  NON CURRENT PROVISIONS FOR RISK AND OTHER CHARGES

        The balance is detailed below (amounts in thousands of Euro):

   
 
  Legal
risk

  Self-
insurance

  Tax
provision

  Other
risks

  Total
 
   

Balance as of December 31, 2011

    8,598     23,763     36,397     11,643     80,400  
                       

Increases

    830     3,005           308     4,143  

Decreases

    (337 )   (3,256 )   (6,820 )   (439 )   (10,852 )

Business Combinations

                17,627     9,269     26,896  

Translation difference and other movements

    (713 )   565     (420 )   (496 )   (1,065 )
                       

Balance as of June 30, 2012

    8,377     24,078     46,784     20,284     99,523  
                       
   

        Other risks mainly includes (i) accruals for risks related to claims with sales agents of certain Italian companies of Euro 6.7 million (Euro 7.1 million as of June 30, 2011) and (ii) accruals for decommissioning costs of certain subsidiaries of the Group operating in the retail segment of Euro 2.5 million (Euro 2.4 million as of June 30, 2011).

        The tax and various risk provisions related to Business Combinations refer to Tecnol (Please refer to Note 4 "Business Combinations" for further details).

25.  OTHER NON CURRENT LIABILITIES

        Other long term liabilities total Euro 65.9 million (Euro 66.8 million as of December 31, 2011).

        Other long term payable mainly include (i) the long term portion of the liability related to derivative contracts of Euro 2.3 million (Euro 8.6 million as of December 31, 2011), (ii) the payable for acquisition of the remaining 20% of Tecnol of Euro 10.4 million (Euro 0.0 as of December 31, 2011) and (iii) other long- term liabilities of the North America Retail operations of Euro 43.6 million (Euro 49.1 million as of December 31, 2011).

49


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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

26.  LUXOTTICA GROUP STOCKHOLDERS' EQUITY

Capital stock

        The Company's capital stock at June 30, 2012 amounted to Euro 28,183,305.72 and was comprised of 469,721,762 ordinary shares of stock with a par value of Euro 0.06 per share. At January 1, 2012, the capital stock amounted to Euro 28,041,100.62 and was comprised of 467,351,677 ordinary shares of stock with a par value of Euro 0.06 per share.

        Following the exercise of 2,370,085 options to purchase ordinary shares of stock granted to employees under existing stock option plans, the capital stock increased by Euro 142,205.1 in the first six months of 2012.

        The options exercised included 138,100 from the 2003 grant, 449,700 from the 2004 grant, 100,000 from the 2004 performance grant, 324,256 from the 2005 grant, 500,170 from the 2008 grant, 180,500 from the ordinary 2009 plan and 677,359 from the 2009 plan—reassignment of the 2006 and 2007 plans.

Legal reserve

        This reserve represents the portion of the Company's earnings that are not distributable as dividends, in accordance with article 2430 of the Italian Civil Code.

Additional paid-in capital

        This reserve increases in connection with the issuance and exercise of options.

Retained earnings

        These include subsidiaries' earnings that have not been distributed as dividends and the amount of consolidated subsidiaries' equity in excess of the corresponding carrying amounts of investments in the same subsidiaries. This item also includes amounts arising as a result of consolidation adjustments.

Translation of foreign operations

        Translation differences are generated by the translation into Euro of financial statements prepared in currencies other than Euro.

Treasury reserve

        Treasury reserve was equal to Euro 91.9 million as of June 30, 2012 (Euro 117.4 million as of December 31, 2011). The decrease of Euro 25.5 million was due to grants to certain top executives of approximately 1.5 million of treasury shares as result of the achievement of the financial targets identified by the Board of Directors for 2009 PSP. As a result of the above mentioned grant, the treasury shares reduced from 6,186,425 as of December 31, 2011 to 4,681,025 as of June 30, 2012.

27.  NON-CONTROLLING INTERESTS

        Equity attributable to non-controlling interests amounted to Euro 12.8 million and Euro 12.2 million at June 30, 2012 and December 31, 2011, respectively. The increase is mainly attributable to the net

50


Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

27.  NON-CONTROLLING INTERESTS (Continued)

income of the period of Euro 3.2 million partially offset by the dividend distributed in the period to the non- controlling interests of Euro 2.3 million.

28.  NOTES TO THE CONSOLIDATED STATEMENT OF INCOME

        Please refer to Note 3—"Financial Results" in the Management Report on the Interim Financial Results as of June 30, 2012 (unaudited).

29.  COMMITMENTS AND RISKS

        The Group has commitments under contractual agreements in place. Such commitments related to the following:

Guarantees

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Table of Contents


Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

29.  COMMITMENTS AND RISKS (Continued)

Credit lines

        As of June 30, 2012 and as of December 31, 2011, the Company had unused short-term lines of credit of approximately Euro 754.8 million and Euro 747.9 million, respectively.

        The Company and its wholly-owned Italian subsidiary Luxottica S.r.l. maintain unsecured lines of credit with primary banks for an aggregate maximum credit of Euro 311.7 million. These lines of credit are renewable annually, can be canceled on short notice and have no commitment fees. At June 30, 2012, these credit lines were not utilized.

        U.S. Holdings maintains unsecured lines of credit with three separate banks for an aggregate maximum credit of Euro 103.2 million (U.S. $130 million). These lines of credit are renewable annually, can be canceled on short notice and have no commitment fees. At June 30, 2012, they were not used and there were Euro 35.4 million in aggregate face amount of standby letters of credit outstanding under these lines of credit.

        The blended average interest rate on these lines of credit is approximately LIBOR plus 0.40 percent.

Litigation

French Competition Authority Investigation

        Our French subsidiary Luxottica France S.A.S., together with other major competitors in the French eyewear industry, has been the subject of an anti-competition investigation conducted by the French Competition Authority relating to pricing practices in such industry. The investigation is ongoing, and, to date, no formal action has yet been taken by the French Competition Authority. As a consequence, it is not possible to estimate or provide a range of potential liability that may be involved in this matter. The outcome of any such action, which the Group intends to vigorously defend, is inherently uncertain, and there can be no assurance that such action, if adversely determined, will not have a material adverse effect on our business, results of operations and financial condition.

Other proceedings

        The Group is a defendant in various other lawsuits arising in the ordinary course of business. It is the opinion of the management of the Company that it has meritorious defenses against all such outstanding claims, which the Company will vigorously pursue, and that the outcome of such claims, individually or in the aggregate, will not have a material adverse effect on the Group's consolidated financial position or results of operations.

52


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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

30.  RELATED PARTY TRANSACTIONS

Licensing agreements

        The Group executed an exclusive worldwide license for the production and distribution of Brooks Brothers brand eyewear. The brand is held by Brooks Brothers Group, Inc. ("BBG"), which is owned and controlled by a director of the Company, Claudio Del Vecchio. The Group paid BBG Euro 0.3 million in the first six months of 2012 and 2011.

Stock option plan

        On September 14, 2004, the Company's Chairman and largest stockholder, Leonardo Del Vecchio, allocated 9.6 million shares (representing 2.11 percent of the Company's issued share capital as of such date) that he held through the company La Leonardo Finanziaria S.r.l.—subsequently merged into Delfin S.à r.l. a holding company of the Del Vecchio family—to a stock option plan for the Group's top management. The options vested on June 30, 2006, upon the achievement of certain financial targets. Accordingly, since the vesting date, the holders of these options have been and will remain entitled to exercise these options from such date until their expiration in 2014. In the first six months of 2012, 3.1 million rights were exercised as part of this plan. In the same period of 2011, 720 thousand rights were exercised. There were approximately 4.2 million options outstanding as of June 30, 2012.

        A summary of related party transactions as of June 30, 2012 and June 30, 2011 is provided below:

   
(Amounts in thousands of Euro)
  As of June 30, 2012
 
   
 
  Income statement
  Balance sheet
 
Related parties
  Revenues
  Costs
  Assets
  Liabilities
 
   

Brooks Brothers Group, Inc

        543     39     312  

Eyebiz Laboratories Pty Limited

    500     23,570     7,508     14,973  

Others

    355     432     531     128  
                   

Total

    855     24,545     8,078     15,413  
                   

 

 

 

   
(Amounts in thousands of Euro)
  As of June 30, 2011
 
   
 
  Income statement
  Balance sheet
 
Related parties
  Revenues
  Costs
  Assets
  Liabilities
 
   

Brooks Brothers Group Inc

        232     178     120  

Multiopticas Internacional SL

    4,697     25     2,440     2,479  

Eyebiz Laboratories Pty Limited

    495     21,732     2,233     13,462  

Others

    292     157     189     13  
                   

Total

    5,484     22,146     5,040     16,074  
                   

 

 

        Total remuneration due to key managers in the first six months of 2012 amounted to approximately Euro 25.5 million (Euro 23.4 million at June 30, 2011).

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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

31.  EARNINGS PER SHARE

        Basic and diluted earnings per share have been calculated as the ratio of net profit attributable to the stockholders of the Company for the periods ended June 30, 2012 and 2011, amounting to Euro 326.3 million and Euro 276.8 million, respectively, to the number of outstanding shares on such dates—basic and dilutive of the Company.

        Earnings per share in the first six months of 2012 amounted to Euro 0.70, compared to Euro 0.60 in the same period in 2011. Diluted earnings per share in the first six months of 2012 amounted to Euro 0.70, compared to Euro 0.60 in the same period in 2011.

        The table below provides a reconciliation of the weighted average number of shares used to calculate basic and diluted earnings per share:

   
 
  As of June 30,  
 
  2012
  2011
 
   

Weighted average shares outstanding—basic

    463,228,972     460,118,653  

Effect of dilutive stock options

    2,331,819     2,035,207  

Weighted average shares outstanding—dilutive

    465,560,791     462,153,860  

Options not included in calculation of dilutive shares as the average value was greater than the average price during the respective period or performance measures related to the awards have not yet been met

    9,980,585     12,970,473  

 

 

32.  DIVIDENDS

        In May 2012, the Company distributed an aggregate of Euro 227.4 million in dividends to its stockholders equal to Euro 0.49 per ordinary share. Dividends distributed to non-controlling interests in the first half of 2012 totaled Euro 2.3 million. In May 2011, the Company distributed an aggregate of Euro 202.5 million in dividends to its stockholders equal to Euro 0.44 per ordinary share. Dividends distributed to non-controlling interests in the first half of 2011 totaled Euro 2.0 million.

33.  ATYPICAL AND/OR UNUSUAL OPERATIONS

        There were no atypical and/or unusual transactions, as defined by the Consob communication n. 60644293 dated July 28, 2006, that occurred in the first six months of 2012 and 2011.

34.  NON-RECURRING TRANSACTIONS

        On January 24, 2012 the Board of Directors of Luxottica approved the reorganization of the retail business in Australia. As a result of this reorganization the Group will close about 10 percent of its Australian and New Zealand stores, redirecting resources into its market leading OPSM brand. As a result of the reorganization the Group estimates it will incur in 2012 non-recurring expenses of approximately Euro 21.4 million.

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Notes to the
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
As of JUNE 30, 2012
(UNAUDITED)

35.  SHARE-BASED PAYMENTS

        On May 13, 2008, a Performance Shares Plan for senior managers within the Company as identified by the Board of Directors of the Company (the "Board") (the "2008 PSP") was adopted. The beneficiaries of the 2008 PSP are granted the right to receive ordinary shares, without consideration if certain financial targets set by the Board of Directors are achieved over a specified three-year period.

        On May 7, 2012, the Board of Directors granted certain of our key employees 721,200 rights to receive ordinary shares ("units") pursuant to the PSP plan adopted in 2008.

        The fair value of the units, amounting to Euro 26.65, was estimated on the grant date using the binomial model and the following weighted average assumptions:

   

Share Price at grant date

    28.23  

Expected life

    3 years  

Dividend Yield

    1.94 %

 

 

        On May 7, 2012, the Board of Directors granted 687,500 options to employees domiciled in the United States with a fair value of Euro 7.85 per option as well as 1,389,000 options to employees domiciled outside the United States with a fair value of Euro 8.23.

   

Share Price at grant date

    Euro 28.23  

Expected life

    5.61 years  

Dividend Yield

    1.94 %

Volatility

    35.70 %

Risk Free Rate

    1.40 %

 

 

36.  SEASONAL AND CYCLICAL EFFECTS ON OPERATIONS

        We have historically experienced sales volume fluctuations by quarter due to seasonality associated with the sale of sunglasses, which represented 45.9 percent and 46.2 percent of our net sales in the first six months of 2012 and 2011, respectively.

37.  SUBSEQUENT EVENTS

        On July 12, 2012, the Group prepaid USD 246 million (Euro 201.4 million) of Tranche E of the Oakley acquisition credit facility with an original scheduled maturity of October 12, 2012. On the same date US Holdings prepaid USD 169 million (Euro 138.5 million) of Tranche D of the Oakley acquisition credit facility with an original scheduled maturity of October 12, 2012 for an amount of USD 130 million and on January 12, 2013 for an amount of USD 39 million.

******************************************************

55


Table of Contents

Attachment 1

EXCHANGE RATES USED TO TRANSLATE FINANCIAL STATEMENTS PREPARED IN CURRENCIES OTHER THAN THE EURO

   
 
  Average
exchange rate
as of
June 30,
2012

  Final
exchange rate
as of
June 30,
2012

  Average
exchange rate
as of
June 30,
2011

  Final
exchange rate
as of
December 31,
2011

 
   

(per €1)

                         

American Dollar (GMO Ecuador)

   
1.2965
   
1.2590
   
n.a.
   
1.2939
 

Argentine Peso

    5.6909     5.6432     5.6797     5.5677  

Australian Dollar

    1.2559     1.2339     1.3582     1.2723  

Brazilian Real

    2.4144     2.5788     2.2879     2.4159  

Canadian Dollar

    1.3040     1.2871     1.3706     1.3215  

Chilean Peso

    638.6833     636.5810     n.a.     671.9970  

Chinese Renminbi

    8.1901     8.0011     9.1755     8.1588  

Colombian Peso

    2,324.6325     2,275.4500     n.a.     2,510.5701  

Croatian Kuna

    7.5428     7.5178     7.3975     7.5370  

Great Britain Pound

    0.8225     0.8068     0.8682     0.8353  

Hong Kong Dollar

    10.0619     9.7658     10.9212     10.0510  

Hungarian Forint

    295.4498     287.7700     269.4495     314.5800  

Indian Rupee

    67.5963     70.1200     63.1436     68.7130  

Israeli Shekel

    4.9231     4.9453     4.9368     4.9453  

Japanese Yen

    103.3102     100.1300     114.9699     100.2000  

Malaysian Ringgit

    4.0022     3.9960     4.2552     4.1055  

Mexican Peso

    17.1867     16.8755     16.6865     18.0512  

Namibian Dollar

    10.2942     10.3669     n.a.     10.4830  

New Zealand Dollar

    1.6133     1.5746     1.8050     1.6737  

Norwegian Krona

    7.5729     7.5330     7.8247     7.7540  

Peruvian Nuevo Sol

    3.4677     3.3540     n.a.     3.4875  

Polish Zloty

    4.2459     4.2488     3.9527     4.4580  

Singapore Dollar

    1.6391     1.5974     1.7653     1.6819  

South African Rand

    10.2942     10.3669     9.6856     10.4830  

South Korean Won

    1,480.4092     1,441.0000     1,544.8991     1,498.6899  

Swedish Krona

    8.8824     8.7728     8.9391     8.9120  

Swiss Franc

    1.2048     1.2030     1.2694     1.2156  

Taiwan Dollar

    38.4532     37.6024     40.7886     39.1835  

Thai Baht

    40.3719     39.8730     42.6746     40.9910  

Turkish Lira

    2.3361     2.2834     2.2081     2.4432  

U.S. Dollar

    1.2965     1.2590     1.4032     1.2939  

United Arab Emirates Dirham

    4.7619     4.6243     5.1540     4.7524  
   

56


Table of Contents

Attachment 2

Investments of Luxottica Group S.p.A. representing ownership interests in excess of 10 percent (pursuant to Section 125 Consob Regulation 11971/99)

        The following table reports the direct and indirect investments of Luxottica Group S.p.A. in more than 10 percent of the capital of unlisted public and private limited companies in Italy and abroad; this table has been prepared in compliance with Appendix 4B, letter B, point 4.1 of the Consob Regulation adopted in resolution 11971 dated May 14, 1999 as amended, and with Section 39 of Italian Legislative Decree 1997/127:

   
Company
  Registered Address
  Shareholder
  Direct
% of
Ownership

  Group
% of
Ownership

  Share
Capital
in Local
Currency

  Share
Capital
Currency

  Number of
Shares Owned

 
   

1242 PRODUCTIONS INC

  TUMWATER-WASHINGTON   OAKLEY INC     100.00     100.00     100,000.00     USD     100,000.00  

AIR SUN

  MASON-OHIO   SUNGLASS HUT TRADING LLC     70.00     70.00     1.00     USD     70.00  

ARNETTE OPTIC ILLUSIONS INC

  IRVINE-CALIFORNIA   LUXOTTICA US HOLDINGS CORP     100.00     100.00     1.00     USD     100.00  

BAZOOKA INC

  TUMWATER-WASHINGTON   OAKLEY INC     100.00     100.00     1.00     USD     1,000.00  

BEIJING SI MING DE TRADING CO LTD

  BEIJING   SPV ZETA Optical Trading (Beijing) Co Ltd     100.00     100.00     30,000.00     CNR     30,000.00  

BRIGHT EYES FRANCHISING PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     600,070.00     AUD     110.00  

BRIGHT EYES LEASING PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     20.00     AUD     110.00  

BRIGHT EYES RETAIL PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     110.00     AUD     110.00  

BRIGHT EYES TRADE MARKS PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     200,100.00     AUD     110.00  

BUDGET EYEWEAR AUSTRALIA PTY LTD

  MACQUARIE PARK-NSW   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     341,762.00     AUD     341,762.00  

BUDGET SPECS (FRANCHISING) PTY LTD

  MACQUARIE PARK-NSW   BUDGET EYEWEAR AUSTRALIA PTY LTD     100.00     100.00     2.00     AUD     2.00  

CENTRE PROFESSIONNEL DE VISION USSC INC

  ETOBICOKE-ONTARIO   THE UNITED STATES SHOE CORPORATION     100.00     100.00     1.00     CAD     99.00  

COLE VISION SERVICES INC

  DOVER-DELAWARE   EYEMED VISION CARE LLC     100.00     100.00     10.00     USD     1,000.00  

COLLEZIONE RATHSCHULER SRL

  AGORDO   LUXOTTICA GROUP SPA     100.00     100.00     10,000.00     EUR     10,000.00  

DAVID CLULOW BRIGHTON LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW COBHAM LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW CROUCH END LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW IRELAND LIMITED

  DUBLIN   SUNGLASS HUT IRELAND LIMITED     100.00     100.00     100.00     EUR     100.00  

DAVID CLULOW LOUGHTON LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW MARLOW LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW NEWBURY LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW OXFORD LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW RICHMOND LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DAVID CLULOW WIMBLEDON LIMITED

  LONDON   OPTIKA LIMITED     50.00     50.00     2.00     GBP     1.00  

DEVLYN OPTICAL LLC

  HOUSTON   LUXOTTICA RETAIL NORTH AMERICA INC     30.00     30.00     100.00     USD     3.00  

ECOTOP PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     10,100.00     AUD     110.00  

ENTERPRISES OF LENSCRAFTERS LLC

  MARION-OHIO   LUXOTTICA RETAIL NORTH AMERICA INC     100.00     100.00     1,000.00     USD     1,000.00  

EYE SAFETY SYSTEMS INC

  DOVER-DELAWARE   OAKLEY INC     100.00     100.00     1.00     USD     100.00  

57


Table of Contents

   
Company
  Registered Address
  Shareholder
  Direct
% of
Ownership

  Group
% of
Ownership

  Share
Capital
in Local
Currency

  Share
Capital
Currency

  Number of
Shares Owned

 
   

EYEBIZ LABORATORIES PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA RETAIL AUSTRALIA PTY LTD     30.00     30.00     10,000,005.00     AUD     6,000,003.00  

EYEMED INSURANCE COMPANY

  PHOENIX-ARIZONA   LUXOTTICA US HOLDINGS CORP     100.00     100.00     250,000.00     USD     250,000.00  

EYEMED VISION CARE IPA LLC

  NEW YORK-NEW YORK   EYEMED VISION CARE LLC     100.00     100.00     1.00     USD     1.00  

EYEMED VISION CARE LLC

  DOVER-DELAWARE   LUXOTTICA RETAIL NORTH AMERICA INC     100.00     100.00     1.00     USD     1.00  

EYEXAM OF CALIFORNIA INC

  IRVINE-CALIFORNIA   THE UNITED STATES SHOE CORPORATION     100.00     100.00     10.00     USD     1,000.00  

FIRST AMERICAN ADMINISTRATORS INC

  PHOENIX-ARIZONA   EYEMED VISION CARE LLC     100.00     100.00     1,000.00     USD     1,000.00  

GIBB AND BEEMAN PTY LIMITED

  MACQUARIE PARK-NSW   OPSM GROUP PTY LIMITED     100.00     100.00     399,219.00     AUD     798,438.00  

GUANGZHOU MING LONG OPTICAL TECHNOLOGY CO LTD

  GUANGZHOU CITY   LUXOTTICA (CHINA) INVESTMENT CO LTD     100.00     100.00     240,500,000.00     CNR     240,500,000.00  

JUST SPECTACLES (FRANCHISOR) PTY LTD

  MACQUARIE PARK-NSW   OF PTY LTD     100.00     100.00     200.00     AUD     200.00  

JUST SPECTACLES PTY LTD

  MACQUARIE PARK—NSW   OF PTY LTD     100.00     100.00     2,000.00     AUD     2,000.00  

LAUBMAN AND PANK PTY LTD

  MACQUARIE PARK-NSW   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     2,370,448.00     AUD     4,740,896.00  

LENSCRAFTERS INTERNATIONAL INC

  MARION-OHIO   THE UNITED STATES SHOE CORPORATION     100.00     100.00     500.00     USD     5.00  

LRE LLC

  MARION-OHIO   LUXOTTICA RETAIL NORTH AMERICA INC     100.00     100.00     1.00     USD     1.00  

LUXOTTICA (CHINA) INVESTMENT CO LTD

  SHANGHAI   LUXOTTICA TRADING AND FINANCE LIMITED     100.00     100.00     88,400,000.00     USD     88,400,000.00  

LUXOTTICA (SHANGHAI) TRADING CO LTD

  SHANGHAI   LUXOTTICA HOLLAND BV     100.00     100.00     1,000,000.00     EUR     1,000,000.00  

LUXOTTICA (SWITZERLAND) AG

  ZURICH   LUXOTTICA GROUP SPA     100.00     100.00     100,000.00     CHF     100.00  

LUXOTTICA ARGENTINA SRL

  BUENOS AIRES   LUXOTTICA GROUP SPA     99.57     100.00     700,000.00     ARS     697,000.00  

LUXOTTICA ARGENTINA SRL

  BUENOS AIRES   LUXOTTICA SRL     0.43     100.00     700,000.00     ARS     3,000.00  

LUXOTTICA AUSTRALIA PTY LTD

  MACQUARIE PARK-NSW   OPSM GROUP PTY LIMITED     100.00     100.00     1,715,000.00     AUD     1,715,000.00  

LUXOTTICA BELGIUM NV

  BERCHEM   LUXOTTICA SRL     1.00     100.00     62,000.00     EUR     1.00  

LUXOTTICA BELGIUM NV

  BERCHEM   LUXOTTICA GROUP SPA     99.00     100.00     62,000.00     EUR     99.00  

LUXOTTICA BRASIL PRODUTOS OTICOS E ESPORTIVOS LTDA

  SAN PAOLO   LUXOTTICA SRL     0.00     100.00     343,457,587.00     BRL     1,186.00  

LUXOTTICA BRASIL PRODUTOS OTICOS E ESPORTIVOS LTDA

  SAN PAOLO   LUXOTTICA GROUP SPA     57.99     100.00     343,457,587.00     BRL     199,160,888.00  

LUXOTTICA BRASIL PRODUTOS OTICOS E ESPORTIVOS LTDA

  SAN PAOLO   OAKLEY CANADA INC     42.01     100.00     343,457,587.00     BRL     144,295,513.00  

LUXOTTICA CANADA INC

  TORONTO-ONTARIO   LUXOTTICA GROUP SPA     100.00     100.00     200.00     CAD     200.00  

LUXOTTICA CENTRAL EUROPE KFT

  BUDAPEST   LUXOTTICA HOLLAND BV     100.00     100.00     3,000,000.00     HUF     3,000,000.00  

LUXOTTICA ExTrA LIMITED

  DUBLIN   LUXOTTICA TRADING AND FINANCE LIMITED     100.00     100.00     1.00     EUR     1.00  

LUXOTTICA FASHION BRILLEN VERTRIEBS GMBH

  GRASBRUNN   LUXOTTICA GROUP SPA     100.00     100.00     230,081.35     EUR     230,081.00  

LUXOTTICA FRANCE SAS

  VALBONNE   LUXOTTICA GROUP SPA     100.00     100.00     534,000.00     EUR     500.00  

LUXOTTICA FRANCHISING AUSTRALIA PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     2.00     AUD     2.00  

LUXOTTICA FRANCHISING CANADA INC

  MISSISSAUGA-ONTARIO   LUXOTTICA NORTH AMERICA DISTRIBUTION LLC     100.00     100.00     1,000.00     CAD     1,000.00  

58


Table of Contents

   
Company
  Registered Address
  Shareholder
  Direct
% of
Ownership

  Group
% of
Ownership

  Share
Capital
in Local
Currency

  Share
Capital
Currency

  Number of
Shares Owned

 
   

LUXOTTICA GOZLUK ENDUSTRI VE TICARET ANONIM SIRKETI

  CIGLI-IZMIR   LUXOTTICA GROUP SPA     64.84     100.00     10,390,459.89     LTL     673,717,415.00  

LUXOTTICA GOZLUK ENDUSTRI VE TICARET ANONIM SIRKETI

  CIGLI-IZMIR   LUXOTTICA LEASING SRL     0.00     100.00     10,390,459.89     LTL     3.00  

LUXOTTICA GOZLUK ENDUSTRI VE TICARET ANONIM SIRKETI

  CIGLI-IZMIR   SUNGLASS HUT NETHERLANDS BV     35.16     100.00     10,390,459.89     LTL     365,328,569.00  

LUXOTTICA GOZLUK ENDUSTRI VE TICARET ANONIM SIRKETI

  CIGLI-IZMIR   LUXOTTICA SRL     0.00     100.00     10,390,459.89     LTL     1.00  

LUXOTTICA GOZLUK ENDUSTRI VE TICARET ANONIM SIRKETI

  CIGLI-IZMIR   LUXOTTICA HOLLAND BV     0.00     100.00     10,390,459.89     LTL     1.00  

LUXOTTICA HELLAS AE

  PALLINI   LUXOTTICA GROUP SPA     70.00     70.00     1,752,900.00     EUR     40,901.00  

LUXOTTICA HOLLAND BV

  AMSTERDAM   LUXOTTICA GROUP SPA     100.00     100.00     45,000.00     EUR     100.00  

LUXOTTICA HONG KONG WHOLESALE LIMITED

  HONG KONG-HONG KONG   LUXOTTICA TRADING AND FINANCE LIMITED     100.00     100.00     10,000,000.00     HKD     10,000,000.00  

LUXOTTICA IBERICA SA

  BARCELONA   LUXOTTICA GROUP SPA     100.00     100.00     1,382,901.00     EUR     230,100.00  

LUXOTTICA INDIA EYEWEAR PRIVATE LIMITED

  GURGAON-HARYANA   LUXOTTICA LEASING SRL     0.00     100.00     500,000.00     RUP     1.00  

LUXOTTICA INDIA EYEWEAR PRIVATE LIMITED

  GURGAON-HARYANA   LUXOTTICA HOLLAND BV     100.00     100.00     500,000.00     RUP     49,999.00  

LUXOTTICA ITALIA SRL

  AGORDO   LUXOTTICA GROUP SPA     100.00     100.00     5,000,000.00     EUR     5,000,000.00  

LUXOTTICA KOREA LTD

  SEOUL   LUXOTTICA GROUP SPA     100.00     100.00     120,000,000.00     KRW     12,000.00  

LUXOTTICA LEASING SRL

  AGORDO   LUXOTTICA GROUP SPA     100.00     100.00     36,000,000.00     EUR     36,000,000.00  

LUXOTTICA MEXICO SA DE CV

  MEXICO CITY   LUXOTTICA GROUP SPA     96.00     100.00     2,000,000.00     MXN     1,920.00  

LUXOTTICA MEXICO SA DE CV

  MEXICO CITY   LUXOTTICA SRL     4.00     100.00     2,000,000.00     MXN     80.00  

LUXOTTICA MIDDLE EAST FZE

  DUBAI   LUXOTTICA GROUP SPA     100.00     100.00     1,000,000.00     AED     1.00  

LUXOTTICA NEDERLAND BV

  HEEMSTEDE   LUXOTTICA GROUP SPA     51.00     51.00     453,780.22     EUR     5,100.00  

LUXOTTICA NORDIC AB

  STOCKHOLM   LUXOTTICA GROUP SPA     100.00     100.00     250,000.00     SEK     2,500.00  

LUXOTTICA NORGE AS

  KONGSBERG   LUXOTTICA GROUP SPA     100.00     100.00     100,000.00     NOK     100.00  

LUXOTTICA NORTH AMERICA DISTRIBUTION LLC

  DOVER-DELAWARE   LUXOTTICA USA LLC     100.00     100.00     1.00     USD     1.00  

LUXOTTICA OPTICS LTD

  TEL AVIV   LUXOTTICA GROUP SPA     100.00     100.00     43.50     ILS     435,000.00  

LUXOTTICA POLAND SP ZOO

  CRACOV   LUXOTTICA GROUP SPA     25.00     100.00     390,000.00     PLN     195.00  

LUXOTTICA POLAND SP ZOO

  CRACOV   LUXOTTICA HOLLAND BV     75.00     100.00     390,000.00     PLN     585.00  

LUXOTTICA PORTUGAL-COMERCIO DE OPTICA SA

  LISBON   LUXOTTICA SRL     0.21     100.00     700,000.00     EUR     300.00  

LUXOTTICA PORTUGAL-COMERCIO DE OPTICA SA

  LISBON   LUXOTTICA GROUP SPA     99.79     100.00     700,000.00     EUR     139,700.00  

LUXOTTICA RETAIL AUSTRALIA PTY LTD

  MACQUARIE PARK-NSW   OPSM GROUP PTY LIMITED     100.00     100.00     307,796.00     AUD     307,796.00  

LUXOTTICA RETAIL CANADA INC

  TORONTO-ONTARIO   LUXOTTICA RETAIL NORTH AMERICA INC     3.27     100.00     12,671.00     CAD     414.00  

LUXOTTICA RETAIL CANADA INC

  TORONTO-ONTARIO   THE UNITED STATES SHOE CORPORATION     43.82     100.00     12,671.00     CAD     5,553.00  

LUXOTTICA RETAIL CANADA INC

  TORONTO-ONTARIO   LENSCRAFTERS INTERNATIONAL INC     52.91     100.00     12,671.00     CAD     6,704.00  

LUXOTTICA RETAIL FRANCHISING AUSTRALIA PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     2.00     AUD     2.00  

LUXOTTICA RETAIL HONG KONG LIMITED

  HONG KONG-HONG KONG   PROTECTOR SAFETY INDUSTRIES PTY LTD     100.00     100.00     149,127,000.00     HKD     1,491,270.00  

59


Table of Contents

   
Company
  Registered Address
  Shareholder
  Direct
% of
Ownership

  Group
% of
Ownership

  Share
Capital
in Local
Currency

  Share
Capital
Currency

  Number of
Shares Owned

 
   

LUXOTTICA RETAIL NEW ZEALAND LIMITED

  AUCKLAND   PROTECTOR SAFETY INDUSTRIES PTY LTD     100.00     100.00     50,000,100.00     NZD     50,000,100.00  

LUXOTTICA RETAIL NORTH AMERICA INC

  MARION-OHIO   THE UNITED STATES SHOE CORPORATION     100.00     100.00     1.00     USD     20.00  

LUXOTTICA RETAIL UK LTD

  ST ALBANS-HERTFORDSHIRE   LUXOTTICA GROUP SPA     68.00     100.00     24,410,765.00     GBP     16,599,320.00  

LUXOTTICA RETAIL UK LTD

  ST ALBANS-HERTFORDSHIRE   SUNGLASS HUT OF FLORIDA INC     31.14     100.00     24,410,765.00     GBP     7,601,811.00  

LUXOTTICA RETAIL UK LTD

  ST ALBANS-HERTFORDSHIRE   SUNGLASS HUT TRADING LLC     0.86     100.00     24,410,765.00     GBP     209,634.00  

LUXOTTICA SOUTH AFRICA PTY LTD

  CAPE TOWN—OBSERVATORY   LUXOTTICA GROUP SPA     100.00     100.00     2,200.02     ZAR     220,002.00  

LUXOTTICA SOUTH EAST ASIA PTE LTD

  SINGAPORE   LUXOTTICA HOLLAND BV     100.00     100.00     1,360,000.00     SGD     1,360,000.00  

LUXOTTICA SOUTH EASTERN EUROPE LTD

  NOVIGRAD   LUXOTTICA HOLLAND BV     100.00     100.00     1,000,000.00     HRK     1,000,000.00  

LUXOTTICA SOUTH PACIFIC HOLDINGS PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA GROUP SPA     100.00     100.00     232,797,001.00     AUD     232,797,001.00  

LUXOTTICA SOUTH PACIFIC PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA SOUTH PACIFIC HOLDINGS PTY LIMITED     100.00     100.00     460,000,001.00     AUD     460,000,001.00  

LUXOTTICA SRL

  AGORDO   LUXOTTICA GROUP SPA     100.00     100.00     10,000,000.00     EUR     10,000,000.00  

LUXOTTICA STARS SRL

  AGORDO   LUXOTTICA GROUP SPA     100.00     100.00     2,000,000.00     EUR     2,000,000.00  

LUXOTTICA SUN CORPORATION

  DOVER-DELAWARE   LUXOTTICA US HOLDINGS CORP     100.00     100.00     1.00     USD     100.00  

LUXOTTICA TRADING AND FINANCE LIMITED

  DUBLIN   LUXOTTICA GROUP SPA     100.00     100.00     626,543,403.00     EUR     626,543,403.00  

LUXOTTICA TRISTAR (DONGGUAN) OPTICAL CO LTD

  DON GUAN CITY   LUXOTTICA HOLLAND BV     100.00     100.00     28,500,000.00     USD     28,500,000.00  

LUXOTTICA UK LTD

  S. ALBANS-HERTFORDSHIRE   LUXOTTICA GROUP SPA     100.00     100.00     90,000.00     GBP     90,000.00  

LUXOTTICA US HOLDINGS CORP

  DOVER-DELAWARE   LUXOTTICA GROUP SPA     100.00     100.00     100.00     USD     10,000.00  

LUXOTTICA USA LLC

  NEW YORK-NEW YORK   ARNETTE OPTIC ILLUSIONS INC     100.00     100.00     1.00     USD     1.00  

LUXOTTICA VERTRIEBSGESELLSCHAFT MBH

  VIENNA   LUXOTTICA GROUP SPA     100.00     100.00     508,710.00     EUR     50,871.00  

LVD SOURCING LLC

  DOVER-DELAWARE   LUXOTTICA NORTH AMERICA DISTRIBUTION LLC     51.00     51.00     5,000.00     USD     2,550.00  

MIRARI JAPAN CO LTD

  TOKYO   LUXOTTICA GROUP SPA     15.83     100.00     473,700,000.00     JPY     1,500.00  

MIRARI JAPAN CO LTD

  TOKYO   LUXOTTICA HOLLAND BV     84.17     100.00     473,700,000.00     JPY     7,974.00  

MULTIOPTICAS INTERNACIONAL SL

  COLMENAR VIEJO-MADRID   LUXOTTICA GROUP SPA     100.00     100.00     8,147,795.20     EUR     10,184,744.00  

MY-OP (NY) LLC

  DOVER-DELAWARE   OLIVER PEOPLES INC     100.00     100.00     1.00     USD     1.00  

OAKLEY (SCHWEIZ) GMBH

  ZURICH   OAKLEY INC     100.00     100.00     20,000.00     CHF     20,000.00  

OAKLEY AIR JV

  CHICAGO-ILLINOIS   OAKLEY SALES CORP     70.00     70.00     1.00     USD     70.00  

OAKLEY ATHLETIC (PTY) LIMITED

  PORT ELIZABETH   LUXOTTICA SOUTH AFRICA PTY LTD     100.00     100.00     100.00     ZAR     100.00  

OAKLEY CANADA INC

  SAINT LAUREN-QUEBEC   OAKLEY INC     100.00     100.00     10,107,907.00     CAD     10,107,907.00  

OAKLEY CANADA RETAIL ULC

  HALIFAX-NOVA SCOTIA   OAKLEY CANADA INC     100.00     100.00     100.00     CAD     100.00  

OAKLEY DENMARK APS

  COPENHAGEN   OAKLEY INC     100.00     100.00     127,000.00     DKK     127.00  

OAKLEY EDC INC

  TUMWATER-WASHINGTON   OAKLEY INC     100.00     100.00     1,000.00     USD     1,000.00  

OAKLEY EUROPE SNC

  ANNECY   OAKLEY HOLDING SAS     100.00     100.00     25,157,390.20     EUR     251,573,902.00  

OAKLEY FINANCING INC

  TUMWATER-WASHINGTON   OAKLEY INC     100.00     100.00     1.00     USD     100.00  

OAKLEY GMBH

  MUNICH   OAKLEY INC     100.00     100.00     25,000.00     EUR     25,000.00  

OAKLEY HOLDING SAS

  ANNECY   OAKLEY DENMARK APS     49.09     100.00     6,129,050.00     EUR     40,662.00  

OAKLEY HOLDING SAS

  ANNECY   OAKLEY INC     50.91     100.00     6,129,050.00     EUR     42,163.00  

OAKLEY ICON LIMITED

  DUBLIN   LUXOTTICA TRADING AND FINANCE LIMITED     100.00     100.00     1.00     EUR     1.00  

OAKLEY INC

  TUMWATER-WASHINGTON   LUXOTTICA US HOLDINGS CORP     100.00     100.00     10.00     USD     1,000.00  

OAKLEY IRELAND OPTICAL LIMITED

  DUBLIN   OAKLEY INC     100.00     100.00     225,000.00     EUR     225,000.00  

OAKLEY ITALY SRL—IN LIQUIDAZIONE

  BELLUNO   OAKLEY INC     100.00     100.00     10,000.00     EUR     10,000.00  

OAKLEY JAPAN KK

  TOKYO   OAKLEY INC     100.00     100.00     10,000,000.00     JPY     200.00  

OAKLEY LIMTED PARTNERSHIP

  CALGARY-ALBERTA   BAZOOKA INC     1.00     100.00     1.00     CAD     1.00  

60


Table of Contents

   
Company
  Registered Address
  Shareholder
  Direct
% of
Ownership

  Group
% of
Ownership

  Share
Capital
in Local
Currency

  Share
Capital
Currency

  Number of
Shares Owned

 
   

OAKLEY LIMTED PARTNERSHIP

  CALGARY-ALBERTA   OAKLEY INC     99.00     100.00     1.00     CAD     99.00  

OAKLEY MEXICO INC SA DE CV

  HUIXQUILUCAN-HUIXQUILUCAN   OAKLEY INC     100.00     100.00     88,604,000.00     MXN     886,039.00  

OAKLEY MEXICO INC SA DE CV

  HUIXQUILUCAN-HUIXQUILUCAN   BAZOOKA INC     0.00     100.00     88,604,000.00     MXN     1.00  

OAKLEY O STORE INC

  TUMWATER-WASHINGTON   OAKLEY INC     100.00     100.00     1,000.00     USD     1,000.00  

OAKLEY SALES CORP

  TUMWATER-WASHINGTON   OAKLEY INC     100.00     100.00     1,000.00     USD     1,000.00  

OAKLEY SCANDINAVIA AB

  STOCKHOLM   OAKLEY ICON LIMITED     100.00     100.00     100,000.00     SEK     1,000.00  

OAKLEY SOUTH PACIFIC PTY LTD

  VICTORIA-MELBOURNE   OPSM GROUP PTY LIMITED     100.00     100.00     12.00     AUD     12.00  

OAKLEY SPAIN SL

  BARCELLONA   OAKLEY ICON LIMITED     100.00     100.00     3,100.00     EUR     310.00  

OAKLEY UK LTD

  ST ALBANS-HERTFORDSHIRE   OAKLEY INC     100.00     100.00     1,000.00     GBP     1,000.00  

OF PTY LTD

  MACQUARIE PARK-NEW SOUTH WALES   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     35,785,000.00     AUD     35,785,000.00  

OLIVER PEOPLES INC

  IRVINE-CALIFORNIA   OAKLEY INC     100.00     100.00     1.00     USD     1,000.00  

OPSM GROUP PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA SOUTH PACIFIC PTY LIMITED     100.00     100.00     67,613,043.50     AUD     135,226,087.00  

OPTICAS GMO CHILE SA

  COMUNA DE HUECHURABA   LUXOTTICA GROUP SPA     0.00     100.00     3,326,884.00     CLP     1.00  

OPTICAS GMO CHILE SA

  COMUNA DE HUECHURABA   MULTIOPTICAS INTERNACIONAL SL     100.00     100.00     3,326,884.00     CLP     3,326,883.00  

OPTICAS GMO COLOMBIA SAS

  BOGOTA   MULTIOPTICAS INTERNACIONAL SL     100.00     100.00     13,376,033,000.00     COP     13,376,033,000.00  

OPTICAS GMO ECUADOR SA

  MEZANINE   OPTICAS GMO PERU SAC     0.00     100.00     3,300,000.00     USD     1.00  

OPTICAS GMO ECUADOR SA

  MEZANINE   MULTIOPTICAS INTERNACIONAL SL     100.00     100.00     3,300,000.00     USD     3,299,999.00  

OPTICAS GMO PERU SAC

  LIMA   MULTIOPTICAS INTERNACIONAL SL     100.00     100.00     11,201,141.00     PEN     11,201,140.00  

OPTICAS GMO PERU SAC

  LIMA   OPTICAS GMO ECUADOR SA     0.00     100.00     11,201,141.00     PEN     1.00  

OPTIKA HOLDINGS LIMITED

  ST ALBANS-HERTFORDSHIRE   LUXOTTICA RETAIL UK LTD     100.00     100.00     699,900.00     GBP     699,900.00  

OPTIKA LIMITED

  ST ALBANS-HERTFORDSHIRE   OPTIKA HOLDINGS LIMITED     100.00     100.00     2.00     GBP     2.00  

OPTIMUM LEASING PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     110.00     AUD     110.00  

OY LUXOTTICA FINLAND AB

  ESPOO   LUXOTTICA GROUP SPA     100.00     100.00     170,000.00     EUR     1,000.00  

PACIFICA SALES CORPORATION

  IRVINE-CALIFORNIA   OAKLEY INC     100.00     100.00     10.00     USD     1,000.00  

PEARLE VISION MANAGED CARE-HMO OF TEXAS INC

  HOUSTON-TEXAS   THE UNITED STATES SHOE CORPORATION     100.00     100.00     1,000.00     USD     1,000.00  

PEARLE VISIONCARE INC

  IRVINE-CALIFORNIA   THE UNITED STATES SHOE CORPORATION     100.00     100.00     1,000.00     USD     100.00  

PROTECTOR SAFETY INDUSTRIES PTY LTD

  MACQUARIE PARK-NSW   OPSM GROUP PTY LIMITED     100.00     100.00     2,486,250.00     AUD     4,972,500.00  

RAY BAN SUN OPTICS INDIA LIMITED

  BHIWADI   LUXOTTICA US HOLDINGS CORP     93.32     93.32     244,729,170.00     RUP     22,837,271.00  

RAYS HOUSTON

  MASON-OHIO   SUNGLASS HUT TRADING LLC     51.00     51.00     1.00     USD     51.00  

SGH BRASIL COMERCIO DE OCULOS LTDA

  SAN PAOLO   LUXOTTICA TRADING AND FINANCE LIMITED     0.01     100.00     6,720,000.00     BRL     672.00  

SGH BRASIL COMERCIO DE OCULOS LTDA

  SAN PAOLO   LUXOTTICA GROUP SPA     99.99     100.00     6,720,000.00     BRL     6,719,328.00  

SGH OPTICS MALAYSIA SDN BHD

  KUALA LAMPUR   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     2.00     MYR     2.00  

SOMOS INC

  BEVERLY HILLS-CALIFORNIA   LUXOTTICA RETAIL NORTH AMERICA INC     100.00     100.00     2.00     USD     200.00  

SPV ZETA OPTICAL COMMERCIAL AND TRADING (SHANGHAI) CO LTD

  SHANGHAI   LUXOTTICA (CHINA) INVESTMENT CO LTD     100.00     100.00     5,875,000.00     USD     5,875,000.00  

SPV ZETA Optical Trading (Beijing) Co Ltd

  BEIJING   LUXOTTICA (CHINA) INVESTMENT CO LTD     100.00     100.00     465,000,000.00     CNR     465,000,000.00  

SUNGLASS FRAMES SERVICE SA DE CV

  MEXICO CITY   LUXOTTICA GROUP SPA     0.02     100.00     2,350,000.00     MXN     1.00  

61


Table of Contents

   
Company
  Registered Address
  Shareholder
  Direct
% of
Ownership

  Group
% of
Ownership

  Share
Capital
in Local
Currency

  Share
Capital
Currency

  Number of
Shares Owned

 
   

SUNGLASS FRAMES SERVICE SA DE CV

  MEXICO CITY   SUNGLASS HUT DE MEXICO SA DE CV     99.98     100.00     2,350,000.00     MXN     4,699.00  

SUNGLASS HUT (South East Asia) PTE LTD

  SINGAPORE   LUXOTTICA HOLLAND BV     100.00     100.00     100,000.00     SGD     100,000.00  

SUNGLASS HUT AIRPORTS SOUTH AFRICA (PTY) LTD

  CAPE TOWN—OBSERVATORY   SUNGLASS HUT RETAIL SOUTH AFRICA (PTY) LTD     45.00     45.00     1,000.00     ZAR     450.00  

SUNGLASS HUT AUSTRALIA PTY LIMITED

  MACQUARIE PARK-NSW   LUXOTTICA US HOLDINGS CORP     100.00     100.00     46,251,012.00     AUD     46,251,012.00  

SUNGLASS HUT DE MEXICO SA DE CV

  MEXICO CITY   LUXOTTICA TRADING AND FINANCE LIMITED     0.00     100.00     402,500,000.00     MXN     1.00  

SUNGLASS HUT DE MEXICO SA DE CV

  MEXICO CITY   LUXOTTICA GROUP SPA     100.00     100.00     402,500,000.00     MXN     160,999.00  

SUNGLASS HUT HONG KONG LIMITED

  HONG KONG-HONG KONG   PROTECTOR SAFETY INDUSTRIES PTY LTD     50.00     100.00     2.00     HKD     1.00  

SUNGLASS HUT HONG KONG LIMITED

  HONG KONG-HONG KONG   OPSM GROUP PTY LIMITED     50.00     100.00     2.00     HKD     1.00  

SUNGLASS HUT IRELAND LIMITED

  DUBLINO   LUXOTTICA RETAIL UK LTD     100.00     100.00     250.00     EUR     200.00  

SUNGLASS HUT NETHERLANDS BV

  HEEMSTEDE   LUXOTTICA GROUP SPA     100.00     100.00     18,151.20     EUR     40.00  

SUNGLASS HUT OF FLORIDA INC

  WESTON-FLORIDA   LUXOTTICA US HOLDINGS CORP     100.00     100.00     10.00     USD     1,000.00  

SUNGLASS HUT PORTUGAL UNIPESSOAL LDA

  LISBON   LUXOTTICA GROUP SPA     100.00     100.00     1,000,000.00     EUR     1,000,000.00  

SUNGLASS HUT RETAIL NAMIBIA (PTY) LTD

  WINDHOEK   SUNGLASS HUT RETAIL SOUTH AFRICA (PTY) LTD     100.00     100.00     100.00     NAD     100.00  

SUNGLASS HUT RETAIL SOUTH AFRICA (PTY) LTD

  CAPE TOWN—OBSERVATORY   LUXOTTICA SOUTH AFRICA PTY LTD     100.00     100.00     900.00     ZAR     900.00  

SUNGLASS HUT TRADING LLC

  DOVER-DELAWARE   LUXOTTICA US HOLDINGS CORP     100.00     100.00     1.00     USD     1.00  

SUNGLASS ICON PTY LTD

  VICTORIA-MELBOURNE   LUXOTTICA RETAIL AUSTRALIA PTY LTD     100.00     100.00     20,036,912.00     AUD     20,036,912.00  

SUNGLASS WORKS PTY LTD

  VICTORIA-MELBOURNE   SUNGLASS ICON PTY LTD     100.00     100.00     20.00     AUD     110.00  

SUNGLASS WORLD HOLDINGS PTY LIMITED

  MACQUARIE PARK-NSW   SUNGLASS HUT AUSTRALIA PTY LIMITED     100.00     100.00     13,309,475.00     AUD     13,309,475.00  

TECNOL-TECNICA NACIONAL DE OCULOS LTDA

  CAMPINAS   LUXOTTICA BRASIL PRODUTOS OTICOS E ESPORTIVOS LTDA     80.00     80.00     41,321,190.00     BRL     3,305,695.00  

THE OPTICAL SHOP OF ASPEN INC

  IRVINE-CALIFORNIA   OAKLEY INC     100.00     100.00     1.00     USD     250.00  

THE UNITED STATES SHOE CORPORATION

  DOVER-DELAWARE   LUXOTTICA USA LLC     100.00     100.00     1.00     USD     100.00  
   

62


Table of Contents

Certification of the consolidated financial statements, pursuant to Article 154-bis of the Legislative Decree 58/98.

        1.     The undersigned Andrea Guerra and Enrico Cavatorta, as chief executive officer and chief financial officer of Luxottica Group S.p.A, having also taken into account the provisions of Article 154-bis, paragraphs 3 and 4 of Legislative Decree no. 58 of 24 February 1998, hereby certify:

        2.     The assessment of the adequacy of the administrative and accounting procedures for the preparation of the condensed consolidated financial statements as of June 30, 2012 was based on a process developed by Luxottica Group S.p.A in accordance with the model of Internal Control—Integrated Framework issued by the Committee of Sponsoring organizations of the Treadway Commission, which is a framework generally accepted internationally.

        3.     It is also certified that:

63


Table of Contents



Milan, July 26, 2012
Andrea Guerra
(Chief Executive Officer)

Enrico Cavatorta
(Officer in charge with preparing the Company's financial reports)



64


LOGO

Luxottica Headquarters and Registered Office•Via C. Cantù, 2, 20123 Milan, Italy - Tel. + 39.02.863341 - Fax + 39.02.86996550

Deutsche Bank Trust Company Americas (ADR Depositary Bank)•60 Wall Street, New York, NY 10005 USA
Tel. + 1.212.250.9100 - Fax + 1.212.797.0327











LUXOTTICA SRL
AGORDO, BELLUNO - ITALY

LUXOTTICA BELGIUM NV
BERCHEM - BELGIUM

LUXOTTICA FASHION BRILLEN VERTRIEBS
GMBH
GRASBRUNN - GERMANY

LUXOTTICA FRANCE SAS
VALBONNE - FRANCE

LUXOTTICA GOZLUK ENDUSTRI VE TICARET AS
CIGLI - IZMIR - TURKEY

LUXOTTICA HELLAS AE
PALLINI - GREECE

LUXOTTICA IBERICA SA
BARCELONA - SPAIN

LUXOTTICA NEDERLAND BV
HEEMSTEDE - HOLLAND

LUXOTTICA OPTICS LTD
TEL AVIV - ISRAEL

LUXOTTICA POLAND SP ZOO
KRAKÓW - POLAND

LUXOTTICA PORTUGAL-COMERCIO DE
OPTICA SA
LISBON - PORTUGAL

LUXOTTICA (SWITZERLAND) AG
ZURICH - SWITZERLAND

LUXOTTICA CENTRAL EUROPE KFT
BUDAPEST - HUNGARY

LUXOTTICA SOUTH EASTERN EUROPE LTD
NOVIGRAD - CROATIA

LUXOTTICA RETAIL UK LIMITED
ST. ALBANS - HERTFORDSHIRE (UK)

OAKLEY ICON LIMITED
DUBLIN - IRELAND










 










LUXOTTICA ExTrA LIMITED
DUBLIN - IRELAND

LUXOTTICA TRADING AND
FINANCE LIMITED
DUBLIN - IRELAND

LUXOTTICA NORDIC AB
STOCKHOLM - SWEDEN

LUXOTTICA U.K. LTD
ST. ALBANS - HERTFORDSHIRE (UK)

LUXOTTICA
VERTRIEBSGESELLSCHAFT MBH
WIEN - AUSTRIA

LUXOTTICA U.S. HOLDINGS
CORP.
PORT WASHINGTON - NEW YORK (USA)

LUXOTTICA USA, LLC
PORT WASHINGTON - NEW YORK (USA)

LUXOTTICA CANADA INC
TORONTO - ONTARIO (CANADA)

LUXOTTICA NORTH AMERICA
DISTRIBUTION LLC
MASON - OHIO (USA)

LUXOTTICA RETAIL NORTH
AMERICA INC.
MASON - OHIO (USA)

SUNGLASS HUT TRADING, LLC
MASON - OHIO (USA)

EYEMED VISION CARE LLC
MASON - OHIO (USA)

LUXOTTICA RETAIL CANADA INC.
TORONTO - ONTARIO (CANADA)

OAKLEY, INC.
FOOTHILL RANCH - CALIFORNIA (USA)

LUXOTTICA MEXICO SA DE CV
MEXICO CITY - MEXICO

OPTICAS GMO CHILE SA
SANTIAGO - CHILE

TECNOL-TECNICA NACIONAL DE OCULOS LTDA
CAMPINAS - BRAZIL










 










LUXOTTICA ARGENTINA SRL
BUENOS AIRES - ARGENTINA

LUXOTTICA BRASIL PRODUTOS OTICOS E ESPORTIVOS LTDA
SAO PAULO - BRAZIL

LUXOTTICA AUSTRALIA PTY LTD
MACQUARIE PARK - NEW SOUTH WALES (AUSTRALIA)

OPSM GROUP PTY LIMITED
MACQUARIE PARK - NEW SOUTH WALES (AUSTRALIA)

LUXOTTICA MIDDLE EAST FZE
DUBAI - DUBAI (UNITED ARAB EMIRATES)

MIRARI JAPAN CO LTD
TOKYO - JAPAN

LUXOTTICA SOUTH AFRICA PTY LTD
CAPE TOWN - OBSERVATORY (SOUTH AFRICA)

RAYBAN SUN OPTICS INDIA LTD
GURGAON - HARYANA (INDIA)

SPV ZETA OPTICAL COMMERCIAL AND
TRADING (SHANGHAI) CO., LTD
SHANGHAI - CHINA

LUXOTTICA TRISTAR (DONGGUAN)
OPTICAL CO LTD
DONG GUAN CITY, GUANGDONG - CHINA

GUANGZHOU MING LONG OPTICAL
TECHNOLOGY CO. LTD
GUANGZHOU CITY - CHINA

SPV ZETA OPTICAL TRADING (BEIJING) CO.
LTD
BEIJING - CHINA

LUXOTTICA KOREA LTD
SEOUL - KOREA

LUXOTTICA SOUTH PACIFIC
HOLDINGS PTY LIMITED
MACQUARIE PARK - NEW SOUTH WALES (AUSTRALIA)

LUXOTTICA (CHINA)
INVESTMENT CO. LTD.
SHANGHAI - CHINA

www.luxottica.com


        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    LUXOTTICA GROUP S.p.A.
            

  
Date: August 2, 2012

 

By:

 

/s/ Enrico Cavatorta

ENRICO CAVATORTA
CHIEF FINANCIAL OFFICER