Luxottica group corporate presentation


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Luxottica group corporate presentation

  1. 1. 50 years of excellence
  2. 2. Overview of Luxottica Group
  3. 3. Luxottica Group overview 1 Group 62,000 People >7 mn OneSight patients 11 Plants 45 Brands 130 Countries >60 mn Customers >6,300 Stores >55 mn Manufactured frames
  4. 4. Key financial figures – FY 2010 <ul><li>As of March 31, 2011 </li></ul>€ 5.8 bn Group sales € 2.2 bn Wholesale sales € 3.6 bn Retail sales € 402 mn Net income € 712 mn Operating income € 10.8 bn Market capitalization (1)
  5. 5. 50 years of excellence 1961 1971 2001 2009 2007 1995 1999 1998 2004 2006 Today Launch of 1 st collection of prescription eyewear Entrance in wholesale distribution Acquisition of Vogue Acquisition of Persol Entry into optical retail : LensCrafters Acquisition of Ray-Ban Entry into sun retail : Sunglass Hut OPSM Strengthening retail in North America: Cole National Acquisition of Oakley Starting retail expansion in China First step into retail in Latin America Starting licensing agreements with the fashion industry Producer of frames components 1974 Entering the MVC business in US: EyeMed 2003 1990 A first-class brand portfolio <ul><li>Developing a vertically integrated business model </li></ul>Listing on NYSE Listing on Borsa Italiana 2000
  6. 6. <ul><li>A focused and efficient organization, ready to take advantage of further growth opportunities </li></ul>Luxottica Group
  7. 7. What Luxottica stands for
  8. 8. Entrepreneurship & Growth “ We see opportunities that others don’t and understand the value of taking risks. We trust our instincts and listen to our intuition so that we will continue to lead the industry.” <ul><ul><li>Milestones </li></ul></ul><ul><ul><ul><li>1990 US listing </li></ul></ul></ul><ul><ul><ul><li>1995 LensCrafters </li></ul></ul></ul><ul><ul><ul><li>1999 Ray-Ban </li></ul></ul></ul><ul><ul><ul><li>2001 Sunglass Hut </li></ul></ul></ul><ul><ul><ul><li>2003 OPSM </li></ul></ul></ul><ul><ul><ul><li>2007 Oakley </li></ul></ul></ul><ul><ul><ul><li>… what’s next? </li></ul></ul></ul><ul><ul><li>Growth is in our DNA </li></ul></ul>Leonardo Del Vecchio
  9. 9. Brands Brands are our assets. We have created the best portfolio of house and licensed brands to reach a diversified audience: from lifestyle to sport to luxury, across price points, businesses & regions. <ul><ul><li>Over 60,000,000 customers served each year </li></ul></ul>
  10. 10. Vertical integration One of the competitive advantages underpinning our past and future successes is our vertically integrated business model, which is unique in the eyewear industry. Customer <ul><li>design </li></ul><ul><li>prototypes </li></ul><ul><li>manufacturing </li></ul><ul><li>logistic </li></ul><ul><li>distribution </li></ul>
  11. 11. Innovation Creativity and innovation are the foundations of our success and the way we work. We love what we do and believe we make a difference in people’s lives. <ul><ul><li> </li></ul></ul><ul><ul><ul><li>32 million visitors </li></ul></ul></ul><ul><ul><ul><li>15 million viewed virals </li></ul></ul></ul><ul><ul><ul><li>1.8 million Facebook fans </li></ul></ul></ul><ul><ul><li>Over 600 patents and 1,000 trademarks </li></ul></ul><ul><ul><li>HDO technology </li></ul></ul><ul><ul><li>1,500 athletes loyal to the brand </li></ul></ul><ul><ul><li>The first 3D lenses ever made with high-wrap curvature </li></ul></ul><ul><ul><li>Unique proposition </li></ul></ul><ul><ul><ul><li>Structured assortment management </li></ul></ul></ul><ul><ul><ul><li>Fast replenishment </li></ul></ul></ul><ul><ul><li>Registered patent </li></ul></ul><ul><ul><li>5% of the mix </li></ul></ul><ul><ul><li>Keep on re-inventing: Light Ray collection in sun and optical </li></ul></ul>
  12. 12. Execution <ul><ul><li>Ability to quickly and successfully integrate acquisitions </li></ul></ul><ul><ul><ul><li>Over 30 since the beginning </li></ul></ul></ul><ul><ul><ul><li>Oakley was the latest milestone </li></ul></ul></ul>Our track record We believe in simplicity. We focus on priorities so that we can quickly deliver results and drive changes. What we have built sustains us into the future.
  13. 13. 62,000 “Luxotticans” 14% In emerging countries 56% Generation Y 35 Languages … here we are
  14. 14. Operations
  15. 15. First-class manufacturing capabilities Greater flexibility to quickly adjust and shift production as needed Lenses Los Angeles Lauriano Plastic Los Angeles Pederobba Tristar Agordo & Rovereto Metal Acetate Sedico Tristar
  16. 16. The plants Luxottica’s main manufacturing plant, Agordo (Italy) Luxottica Chinese plants, Dongguan <ul><li>Oakley Headquarters and main manufacturing facility, Foothill Ranch (California) </li></ul>
  17. 17. Global DCs network <ul><ul><li>Luxottica has one of the most efficient and advanced logistics system in the industry, with 18 distribution centers worldwide </li></ul></ul><ul><ul><li>There are 3 main distribution centers (hubs) in strategic locations serving the major markets: Sedico in Europe, Atlanta in the Americas and Dongguan in the Asia-Pacific region </li></ul></ul>Atlanta Columbus Foothill Ranch Sedico Dongguan Dallas Toronto Winnipeg Mexico Rio de Janeiro Singapore Turkey India Sidney Japan Hong Kong Cincinnati
  18. 18. Wholesale
  19. 19. House brands License brands The best brand portfolio in the industry <ul><li>(1) Starting from 2012 </li></ul>(1)
  20. 20. The authentic global Icon <ul><ul><li>Since 1937 Ray-Ban is the most successful eyewear brand in the world, worn by movie stars, musicians, athletes, rebels and mavericks </li></ul></ul><ul><ul><li>Timeless, original, authentic, free, American, iconoclastic cool and courageous: Ray-Ban is the unsurpassed leader in eyewear market, an indispensable part of modern culture </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>The Aviator, born in 1937, and the Wayfarer, launched in 1952 are today inimitable icons still setting trends </li></ul></ul><ul><ul><li>The recent launch of Ray Ban Tech with Carbon Fiver collection opened a new fronteer offering high tech confort in very day life </li></ul></ul>Ray-Ban: the most successful eyewear brand
  21. 21. Oakley: global, iconic, unique, authentic #1 sport and performance eyewear brand in the world <ul><ul><li>Established in 1975 and headquartered in Southern California, Oakley is one of the leading sports brands in the world </li></ul></ul><ul><ul><li>Oakley’s Superior High Definition Optics ® meet the toughest demands of world-class athletes, military, law enforcement and active consumers </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Oakley has both men’s and women’s product lines that target Sports Performance, Active and Lifestyle consumers </li></ul></ul><ul><ul><li>Product distribution is global and spans wholesale to retail, and optical to sport </li></ul></ul>
  22. 22. <ul><ul><li>130 countries, 5 continents </li></ul></ul><ul><ul><li>Leadership in key markets: approx. 40 direct subsidiaries representing over 90% of sales </li></ul></ul><ul><ul><li>Reaching approx. 200,000 doors </li></ul></ul><ul><ul><li>Leveraging on a very strong brand portfolio </li></ul></ul><ul><ul><ul><li>Plenty of potential for additional growth from exiting and new brands </li></ul></ul></ul><ul><ul><ul><li>A different distribution strategy by brand </li></ul></ul></ul><ul><ul><li>Plenty of new opportunities </li></ul></ul><ul><ul><ul><li>Emerging markets </li></ul></ul></ul><ul><ul><ul><li>New channels opportunities: department stores, travel retail </li></ul></ul></ul><ul><ul><li>Service is a key differentiator </li></ul></ul>A global coverage... ...with a selective distribution N. doors 100,000-140,000 60,000-100,000 15,000-25,000 8,000- 12,000 Brand positioning Wholesale distribution Lifestyle Fashion Premium Fashion Luxury
  23. 23. A sophisticated distribution approach <ul><ul><li>Structured assortment management and c ontinuous </li></ul></ul><ul><ul><li>replenishment to reduce inventory levels </li></ul></ul><ul><ul><li>Dedicated sales teams in North America, Japan, </li></ul></ul><ul><ul><li>Europe and the Middle East </li></ul></ul><ul><ul><li>Worldwide channel management approach with a </li></ul></ul><ul><ul><li>dedicated corporate team </li></ul></ul><ul><ul><li>Central and local key accounts-dedicated teams </li></ul></ul><ul><ul><li>Traditional sales organization by brand </li></ul></ul><ul><ul><li>Centrally-managed relationship </li></ul></ul>Dept. stores Travel retail Chains and buying groups Trend-setting independents Mainstream independents Trend-setting independents
  24. 24. Retail
  25. 25. Retail network <ul><ul><li>Over 6,300 stores worldwide </li></ul></ul><ul><ul><li>Leading premium optical retailer in: </li></ul></ul><ul><ul><ul><li>North America </li></ul></ul></ul><ul><ul><ul><li>Asia-Pacific </li></ul></ul></ul><ul><ul><ul><li>Greater China </li></ul></ul></ul><ul><ul><li>Leading specialty premium sun retailer worldwide </li></ul></ul><ul><ul><li>Leading operator of leased optical departments in host stores in North America </li></ul></ul><ul><ul><li>Manage of vision care in US </li></ul></ul><ul><ul><li>A strong and diversified retail brand portfolio: </li></ul></ul>Global leader in optical and sun retail Optical Sun
  26. 26. LensCrafters
  27. 27. Sunglass Hut
  28. 28. Financial results
  29. 29. NET SALES 2006-2010 financial performance (millions of Euro) 16.8% 14.1% 11.2% 12.6% 2010 NET SALES BREAKDOWN
  30. 30. Net income (millions of Euro)
  31. 31. Luxottica Group Foundation
  32. 32. A Luxottica foundation, OneSight’s mission is to restore and preserve clear vision for the 314 million adults and children worldwide who cannot afford or do not have access to primary vision care. Our vision is a world where primary eye care is a reality for everyone. Through OneSight, we donate our expertise in eye care and eyewear to give back to those in need. We’ve helped more than 7.5 million people since 1988. OneSight foundation <ul><li>2010 Results </li></ul><ul><ul><li>Global Eye Care: </li></ul></ul><ul><ul><ul><li>15 Global Clinics to 11 different countries </li></ul></ul></ul><ul><ul><ul><li>149,412 people helped </li></ul></ul></ul><ul><ul><li>Regional Eye Care: </li></ul></ul><ul><ul><ul><li>34 Regional and Vision Van Clinics across North America, China and Australia </li></ul></ul></ul><ul><ul><ul><li>26,335 people helped </li></ul></ul></ul><ul><ul><li>Community Eye Care: </li></ul></ul><ul><ul><ul><li>164,908 helped through in-store and community outreach programs across North America and Asia-Pacific </li></ul></ul></ul><ul><ul><li>Preventative Eye Care: </li></ul></ul><ul><ul><ul><li>The OneSight Research Foundation awarded US$250,000 to each of eight organizations that support diabetic retinopathy research </li></ul></ul></ul><ul><ul><ul><li>20 optometry students received scholarships from the OneSight Research Foundation totaling $40,000 </li></ul></ul></ul>OneSight Clinic volunteers were able to help a 74-year old woman who did not have glasses. She was blind in one eye and incredibly far-sighted in the other. The team found a perfect prescription match which allowed her to see clearly for the first time in 5 years. Thailand Global Clinic, 2010