Leader in eyewear

Overview of Luxottica Group

Luxottica Group overview

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

A focused and efficient organization, ready to take advantage of further growth opportunities

Leader in eyewear

Corporate highlights
Key financial figures

Sales FY09  Retail:  Wholesale: Operating Income FY09: Net Income FY09: Market Capitalization(1):

5.1 billion 3.1 billion 2.0 billion

583 million

315 million

8.4 billion

People:

over 60,000

(1)

As of December 31, 2009

Leader in eyewear

Almost 50 years of carefully planned growth

2009
Launch of LensCrafters in China Sunglass Hut (Worldwide) OPSM (Asia-Pacific) First Luxottica collection at MIDO LensCrafters (North America) Cole National (North America) South America

South Africa 2009

2007 2006 Italy US Japan 2004 2003 Ray-Ban First licensing agreement 1990 1995 1999 2001 2000 Development of a first-class brand portfolio (Bulgari, Chanel, Ferragamo, Versace, Prada, Donna Karan, D&G, Burberry, PRL, Tiffany, Stella McCartney, Tory Burch) Oakley 2005 Approx. 40 direct subsidiaries

1988 1981-82 1974 1969 1961 Listing on NYSE Listing on the Milan Stock Exchange Several senior management appointments

Leader in eyewear

Ownership and organizational structure

Shareholding structure(1) A deep management bench

DEPUTY CHAIRMAN L. Francavilla

CHAIRMAN L. Del Vecchio INTERNAL AUDITIN L. Fadda

25.9%


CEO A. Guerra

Functions

1.4% 4.9%

67.8%
V. iacobbi


Business

HOLESALE P. Alberti

RETAIL LUXURY


OAKLEY C. Baden

RETAIL OPTICAL NORTH AMERICA K. Bradley

& SUN

(1) As of September 30, 2009

Tre s r s


res

ree f o t

 

ef

S A . L.

Gior io Arm

i


F. dAngelantonio

Operating Processes

OPERATIONS A. Guerra

QUALITY L. Francavilla

MARKETING, STYLE AND PRODUCT A. Miyakawa

Leader in eyewear

DEVELOPMENT

HUMAN RESOURCES N. Pel

BUSINESS

ADMIN, FINANCE, CONTROLLIN & LE AL AFFAIRS E. Cavatorta

INFORMATION TECHNOLOGY C. Privitera

COMMUNICATIONS I. Do p

INVESTOR RELATIONS A. Senici RETAIL OPTICAL AUSTRALASIA & GREATER CHINA C. Beer

A vertical integrated business model

Product development

Design R&D - Design

Prototype & engineering

Optical lens processing

Frames Production Frames production

Sun lenses production Sun lenses production

EYEWEAR
Wholesale distribution Logistics Customer service Luxottica retail chains

RETAIL CUSTOMERS
Leader in eyewear 7

Manufacturing

First-class manufacturing capabilities

 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

Flexibility to quickly adjust and shift production as needed

Leader in eyewear

The plants

Luxottica Chinese plants, Dong Guan

Oakley Headquarters and main manufacturing facility, Foothill Ranch (California) Luxotticas main manufacturing plant, Agordo (Italy)

Leader in eyewear

10

Wholesale

The best brand portfolio in the industry

House brands

License brands

Leader in eyewear

12

Ray-Ban: the most successful eyewear brand

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

Leader in eyewear

13

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  Oakleys 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 mens and womens product lines that target Sports Performance, Active and Lifestyle consumers  Product distribution is global and spans wholesale to retail, and optical to sport

Leader in eyewear

14

Wholesale distribution
A global coverage
 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

with a selective distribution

Brand positioning N doors
8,00012,000 15,00025,000

Luxury Premium Fashion

Fashion

60,000100,000

Lifestyle

100,000140,000

Leader in eyewear

15

A sophisticated distribution approach

Channel of trade Go-to-market structures and tools
 Dedicated sales teams in North America, Japan, Europe and the Middle East  Permanent high-quality fixture program  Sales associates brand-specific training program  Worldwide channel management approach with a dedicated corporate team  Promoting eyewear in a multi-category environment  Tailor-made marketing and exposure activities  Yearly sales planning and Brand exposure programs  Supply chain initiatives  Central and local key accounts-dedicated teams  Selected by location and quality of the point of sale  Centrally-managed relationship  A customized, dedicated program of brand exposure  Traditional sales organization by brand  Standard point of sale materials  Extensive distribution coverage

Department stores

Travel retail

Chain and buying groups

Trend-setting independents

Mainstream independents

Leader in eyewear

16

A sophisticated distribution approach: the next service

STARS Dept. stores
Automatic replenishment service on store sell-out Active management of product assortment Dedicated trade marketing budget

Travel retail

Chains and buying groups

Trend-setting independents

Mainstream independents

Leader in eyewear

17

Retail

Retail network
Global leader in optical and sun retail
 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:

Optical

Sun

Leader in eyewear

19

Retail presence in key markets worldwide

NORTH AMERICA
OPTICAL SUN

EUROPE
3 stores


CHINA - HONG KONG

OPTICAL SUN

0 stores
 

stores 1, 3 stores


stores 25 stores

AFRICA - MIDDLE EAST AUSTRALIA - NEW ZEALAND

33 stores

stores


23 +

Oliver Peoples stores

33 stores


SOUTH AFRICA
104 stores stores


1 1 stores


Note: Store data as of December 31, 2009

Leader in eyewear



    

242 stores

stores

OPTICAL

SUN

333 stores 272 stores + 13 Bright Eyes

5 stores

20

Luxottica Group Foundation

OneSightSM Foundation
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. 200 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

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

Leader in eyewear

22