Annual Review 2012 - Luxottica

MANAGEMENT REPORT
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Other Income (Expense) - Net. Other income (expense) - net was Euro (30.7) million in the
three-month period ended December 31, 2012 as compared to Euro (26.5) million in the
same period of 2011. Net interest expense was Euro 27.9 million in the three-month period
ended December 31, 2012 as compared to Euro 29.2 million in the same period of 2011.
Net Income. Income before taxes increased by Euro 31.5 million, or 30.9 percent, to
Euro 133.3 million in the three-month period ended December 31, 2012 from Euro 101.9
million in the same period of 2011, for the reasons described above. As a percentage of
net sales, income before taxes increased to 8.2 percent in the three-month period ended
December 31, 2012 from 6.8 percent in the same period of 2011. Adjusted income before
taxes (25) increased by Euro 20.6 million or 18.3 percent in the three-month period ended
December 31, 2012 to Euro 133.3 million as compared to Euro 112.8 million in the same
period of 2011. As a percentage of net sales, adjusted income before taxes (25) increased
by 8.2 percentage in the three-month period ended December 31, 2012 as compared to
7.5 percent in the same period of last year.
(millions of Euro) 4Q 2012 4Q 2011
Net income before taxes 133.3 101.9
Adjustment for OPSM reorganization - 9.6
Adjustment for Multiopticas Internacional extraordinary gain - 1.9
Adjustment for restructuring costs in the Retail Division - (0.6)
Adjusted income before taxes 133.3 112.8
Net income attributable to non-controlling interests decreased to Euro 0.5 million in the
three-month period ended December 31, 2012 as compared to Euro 0.7 million in the
same period of 2011. Our effective tax rate was 42.0 percent in the three-month period
ended December 31, 2012 as compared to 36.1 percent for the same period of 2011.
Net income attributable to Luxottica Group stockholders increased by Euro 12.4 million,
or 19.2 percent, to Euro 76.8 million in the three-month period ended December 31, 2012
from Euro 64.4 million in the same period of 2011. Net income attributable to Luxottica
Group stockholders as a percentage of net sales increased to 4.7 percent in the threemonth
period ended December 31, 2012 from 4.3 percent in the same period of 2011.
Adjusted net income attributable to Luxottica Group stockholders (26) increased by
Euro 14.1 million, or 19.3 percent, to Euro 86.8 million in the three-month period ended
December 31, 2012 from Euro 72.7 million in the same period of 2011. Adjusted net income
attributable to Luxottica Group stockholders (26) as a percentage of net sales increased to
5.3 percent in the three-month period ended December 31, 2012 from 4.8 percent in the
same period of 2011.
(25) For a further discussion of adjusted income before taxes, see page 43 - “Non-IFRS Measures”.
(26) For a further discussion of adjusted net income attributable to Luxottica Group stockholders, see page 43 - “Non-IFRS Measures”.