Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
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, incorporating market conditions, commenced on January 1, 2013. The
first collection will be presented during the first semester of 2013.
July
On July 12, 2012, the Group prepaid USD 246 million (Euro 201.4 million) of Tranche E of
the credit facility used to finance the acquisition of Oakley in 2007 with an original final
maturity date of October 12, 2012. On the same date US Holdings prepaid USD 169 million
(Euro 138.5 million) of Tranche D of this acquisition credit facility. US Holdings prepaid
USD 130 million which had an original maturity date of October 12, 2012 and USD 39
million which had an original maturity date of January 12, 2013.
October
On October 15, 2012 Luxottica Group repaid the remaining part of Tranche E for a total
amount of USD 254.3 million (equal to Euro 196.0 million).
On October 17, 2012 the whole-owned US Holdings repaid a portion of Tranche B for a
total amount of USD 150.0 million (equal to Euro 114.3 million).
November
On November 19, 2012 US Holdings repaid in advance part of the Tranche B for an amount
equal to USD 75 million (equal to Euro 47.1 milioni).
On November 27, 2012 the Company entered into an agreement with Salmoiraghi &
Viganò S.p.A. and Salmoiraghi & Viganò Holding pursuant to which it will subscribe to
shares in connection with a capital injection into Salmoiraghi & Viganò resulting in the
Company holding capital shares equal to 36 percent of this company.
On November 30, 2012 the Group signed an agreement pursuant to which it will acquire
100 percent of the common stock of Alain Mikli International, a French company in the
luxury eyewear industry.
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 7.1 billion in 2012, over 70,000 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 Consolidated Financial
Report as of December 31, 2012 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, OPSM, Laubman & Pank, Bright Eyes, Oakley “O” Stores and Vaults, David
Clulow, GMO and our stores located within host department stores (“retail Licensed Brands”).