Leader in eyewear
Leader in eyewear
Overview of Luxottica Group
Leader in eyewear 3
Luxottica Group overview
A focused and efficient organization, ready to take advantage of further growth opportunities
Leader in premium fashion, luxury and sports eyewear
A successful vertically integrated business model Leader in manufacturing The strongest brand portfolio in the industry Over 130 countries served through wholesale Prescription labs presence Over 6,200 retail stores Manage of vision care business in US
A continuing growth story Ability to combine and manage organic growth and external growth
Positioned to take advantage of long-term industry drivers
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Sales FY09 €5.1 billion Retail: €3.1 billion
Wholesale: €2.0 billion
Operating Income FY09: €583 million
Net Income FY09: €315 million
Market Capitalization(1): €8.4 billion
People: over 60,000
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Key financial figures
Corporate highlights
(1) As of December 31, 2009
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2009
1961
1969
1981-82
1990
1988
First Luxottica collection at MIDO
US
First licensing agreement
Listing onNYSE
1995
LensCrafters (North America)
1974
Italy
1999
Ray-Ban
2000
Listing on the Milan Stock Exchange
2001
Sunglass Hut (Worldwide)
2003
OPSM (Asia-Pacific)
Cole National(North America)
2004
2005
2006
Launch of LensCrafters in China
2007
Oakley
2009
South America
Several senior management appointments
Development of a first-class brand portfolio (Bulgari, Chanel, Ferragamo, Versace, Prada, Donna Karan, D&G, Burberry, PRL, Tiffany, Stella McCartney, Tory Burch)
South Africa
Almost 50 years of carefully planned growth
Approx. 40 direct subsidiaries
Japan
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Ownership and organizational structure
Functions
Business
CHAIRMAN
L. Del Vecchio
INTERNAL
AUDITING
L. Fadda
BUSINESS
DEVELOPMENT
V. Giacobbi
ADMIN, FINANCE, CONTROLLING
& LEGAL AFFAIRS
E. Cavatorta
INFORMATION
TECHNOLOGY
C. Privitera
INVESTOR
RELATIONS
A. Senici
RETAIL OPTICAL
AUSTRALASIA &
GREATER CHINA
C. Beer
WHOLESALE
P. Alberti
QUALITY
L. Francavilla
OPERATIONS
A. Guerra
MARKETING, STYLE
AND PRODUCT
A. Miyakawa
Operating Processes
DEPUTY
CHAIRMAN
L. Francavilla
RETAIL LUXURY
& SUN
F. d’Angelantonio
RETAIL OPTICAL
NORTH AMERICA
K. Bradley
CEO
A. Guerra
OAKLEY
C. Baden
COMMUNICATIONS
I. Dompé
HUMAN
RESOURCES
N. Pelà
A deep management benchShareholding structure(1)
(1) As of September 30, 2009
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A vertical integrated business model
Frames Production
R&D - Design
Sun lenses production
EYEWEAR
Optical lens processing
RETAIL CUSTOMERS
Design
Frames production
Prototype & engineering
Sun lenses production
Luxottica retail chains
Wholesale distribution
Logistics
Customer service
Product development
Manufacturing
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Dedicated lens R&D and manufacturing facility in Italy and US
Six Italy-based high quality manufacturing plants Approx. 60% of total output Fully leveraging Made in Italy Ongoing investments in state-of-the-art technology
The only premium manufacturer with two wholly-owned plants in China High quality Additional manufacturing flexibility On-site quality control of third-party sourced product
A California based plant dedicated to Oakley eyewear
Already looking at the future One India-based manufacturing plant
Sun lenses Completed Luxottica – Oakley New Journey increasing insourcing
First-class manufacturing capabilities
Flexibility to quickly adjust and shift production as needed
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The plants
Luxottica’s main manufacturing plant, Agordo (Italy)
Luxottica Chinese plants, Dong Guan
Oakley Headquarters and main manufacturing facility, Foothill Ranch (California)
Wholesale
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House brands
License brands
The best brand portfolio in the industry
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The authentic Icon in eyewear world
Since 1937 Ray-Ban is the most successful eyewear brand in the world, worn by movie stars, musicians, athletes, rebels and mavericks
Timeless, original, authentic, free, American, iconoclastic cool and courageous: Ray-Ban is the unsurpassed leader in eyewear market, an indispensable part of modern culture
Seven decades of design, technology and innovation, combining cool style and exceptional quality both in frame and lens to deliver legendary sunglasses and optical frames
The Aviator, born in 1937 and the Wayfarer launched in 1952 are, together with the recently relaunched Clubmaster, today inimitable icons still setting trends
Ray-Ban: the most successful eyewear brand
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Oakley: global, iconic, unique, authentic
#1 sport and performance eyewear brand in the world
Established in 1975 and headquartered in Southern California, Oakley is one of the leading sports brands in the world
Oakley’s Superior High Definition Optics® meet the toughest demands of world-class athletes, military, law enforcement and active consumers
The holder of more than 600 patents, Oakley captures a unique blend of technology, design and art in its sunglasses, goggles, prescription eyewear, apparel, footwear and accessories
Oakley has both men’s and women’s product lines that target Sports Performance, Active and Lifestyle consumers
Product distribution is global and spans wholesale to retail, and optical to sport
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130 countries, 5 continents
Leadership in key markets: approx. 40 direct subsidiaries representing over 90% of sales
Reaching approx. 200,000 doors
Over 120,000 units shipped every day
Leveraging on a very strong brand portfolio Plenty of potential for additional growth from
exiting and new brands A different distribution strategy by brand
Plenty of new opportunities Emerging markets New channels opportunities: department
stores, travel retail
Service is a key differentiator
A global coverage... ...with a selective distribution
N. doors
100,000-140,000
60,000-100,000
15,000-25,000
Lifestyle
Fashion
Premium Fashion
Luxury8,000-12,000
Brand positioning
Wholesale distribution
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Channel of trade Go-to-market structures and tools
Mainstream independents
Trend-setting independents
Chain and buying groups
Travel retail
Department stores
Traditional sales organization by brand Standard point of sale materials Extensive distribution coverage
Selected by location and quality of the point of sale Centrally-managed relationship A customized, dedicated program of brand exposure
Yearly sales planning and Brand exposure programs Supply chain initiatives Central and local key accounts-dedicated teams
Worldwide channel management approach with a dedicated corporate team
Promoting eyewear in a multi-category environment Tailor-made marketing and exposure activities
Dedicated sales teams in North America, Japan, Europe and the Middle East
Permanent high-quality fixture program Sales associates brand-specific training program
A sophisticated distribution approach
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STARS
Dept. stores
Travel retail
Chains and buying groups
Trend-setting independents
Mainstream independents
A sophisticated distribution approach: the next service
Automatic replenishment service on store sell-out
Active management of product assortment
Dedicated trade marketing budget
Retail
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Retail network
Approx. 6,200 stores worldwide
Leading premium optical retailer in: North America Asia-Pacific Greater China
Leading specialty premium sun retailer worldwide
Leading operator of leased optical departments in host stores in North America
A strong and diversified retail brand portfolio:
Global leader in optical and sun retail
Optical
Sun
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Retail presence in key markets worldwide
Note: Store data as of December 31, 2009
NORTH AMERICA EUROPE CHINA - HONG KONG
OPTICAL SUN
337 stores
866 stores
955 stores
SOUTH AFRICA
AFRICA - MIDDLE EAST25 stores
764 stores
161 stores
23 + 8 Oliver Peoples stores
1,634 stores
73 stores
70 stores
33 stores
78 stores
242 stores 6 stores
OPTICAL SUN
333 stores
104 stores
95 stores
AUSTRALIA - NEW ZEALAND
272 stores + 139 Bright Eyes
OPTICAL SUN
Luxottica Group Foundation
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At OneSight, a Luxottica Group Foundation, our mission is to restore and preserve clear vision for 250 million adults and children in need worldwide who cannot afford basic eye care. Our Vision is a world where vision care is a reality for everyone. Through OneSight, we use our business expertise in eye care and eyewear to give back to those in need.
2009 activities:
Global Eye Care: 19 Global Clinics to: Brazil**, Chile, Ecuador, Guatemala, Honduras, Mexico, Panama, Paraguay, South
Africa** and Thailand 236,592 people helped
Regional Eye Care: 32 Regional and Vision Van Clinics across North America and Australia 34,251 helped
Community Eye Care: 163,000+ helped through in-store and outreach programs in communities across North America and Asia
Pacific Preventative Eye Care:
13 grants totaling $236,306 to research cures for preventable blindness
** First-Time Clinic Locations
OneSightSM Foundation
After living in virtual blindness for more than 45 years, Vinolia Dambuza couldn’t contain her excitement at finally being able to see the world clearly! Forced to quit school in the 6th grade, she exclaimed, “I can’t wait to go back to school and expand my mind!” South Africa 2009