Annual Review 2012 - Luxottica

4 Group trends in 2012
67
Growth in adjusted operating income 2 for 2012 amounted to Euro 1,004 million, up 22.3%
compared to 2011. The Group’s adjusted operating margin 2 increased from the 13.2%
recorded for 2011 to 14.2%.
Operating income of the wholesale division in 2012 amounted to Euro 604 million (+14.3%
over 2011), with an operating margin of 21.8% (+30 bps as compared with the previous
year).
In 2012, the retail division recorded adjusted operating income 2 of Euro 574 million, up
28.0% from 2011, with an adjusted operating margin 2 of 13.3% (+140 bps as compared with
the previous year).
Adjusted net income 2 for the year amounted to Euro 567 million, up 24.4% from Euro 456
million for 2011, corresponding to adjusted Earnings per Share (EPS) 2 of Euro 1.22.
In 2012, strict control over working capital enabled Luxottica to accumulate record free
cash flow 2 in excess of Euro 700 million. As a result, net debt 2 as of December 31, 2012
decreased further, falling to Euro 1,662 million (Euro 2,032 million at the end of 2011), and
the ratio of adjusted net debt to EBITDA 2 was 1.2x as compared with 1.8x at the end of
2011.
Adjusted OPERATING
INCOME BY DIVISION
› WHOLESALE
NET income adjusted
and ADJUSTED EPS
› NET income 2
Net debt
› NET debt 2
› adjusted NET DEBT TO EBITDA 2
1,200
(Eur m)
600
(Eur m)
1.22
(Eur)
1.25
(Eur m)
2,100 1.8x
1,000
500
0.99
1.00
1,800
1.2x
800
600
400
200
› RETAIL 2 574
529
449
604
400
300
200
100
› adjusted eps 2 567
456
0.75
0.50
0.25
1,500
1,200
900
600
300
2,032
1,662
0
2011 2012
0
2011 2012
0
0
2011 2012
See p. 77 for footnote disclosure and information regarding Luxottica’s non-IAS/IFRS reconciliations.