LensCrafters 2015 Annual Report Download - page 33

Management Report as of December 31, 2015 Page 29 of 35
NON-IFRS MEASURES
Adjusted measures
In this Management Report we discuss certain performance measures that are not in accordance with IFRS. Such non-IFRS
measures are not meant to be considered in isolation or as a substitute for items appearing on our financial statements
prepared in accordance with IFRS. Rather, these non-IFRS measures should be used as a supplement to IFRS results to
assist the reader in better understanding our operational performance.
Such measures are not defined terms under IFRS and their definitions should be carefully reviewed and understood by
investors. Such non-IFRS measures are explained in detail and reconciled to their most comparable IFRS measures below.
In order to provide a supplemental comparison of current period results of operations to prior periods, we have adjusted for
certain non-recurring transactions or events.
In 2015, we made adjustments to the following measures: net sales, cost of sales, operating income and operating margin,
EBITDA, EBITDA margin. We have also made adjustments to net income, earnings per share, operating expenses, selling
expenses and general, administrative expenses and income taxes. We adjusted the above items by (i) excluding the costs
relating to the Oakley integration project (including minor reorganization activities across the Group) which had a Euro 66.4
million impact on Group operating income and a Euro 49.8 million on Group net income in 2015, (ii) starting from July 1,
2014 following the modification of an EyeMed reinsurance agreement with an existing underwriter, the Group assumes less
reinsurance revenues and less claims expense with an impact from the new contract for the twelve month period ended
December 31, 2015 equal to Euro 174.3 million. Effective January 1, 2016, the Group’s managed vision care business
modified the terms of this reinsurance agreement with an existing underwriter whereby the Group will assume more
reinsurance revenue and claims expense.
In 2014, we made adjustments to the following measures: net sales, cost of sales, operating income and operating margin,
EBITDA, EBITDA margin. We have also adjusted net income, earnings per share, operating expenses, selling expenses and
general, administrative expenses and income taxes. We adjusted the above items by (i) excluding non-recurring costs related
to the termination of Andrea Guerra and Enrico Cavatorta as Group’s CEOs for Euro 20 million, Euro 14.5 million net of
tax effect, (ii) excluding non-recurring costs related to the tax audit of Luxottica S.r.l. (fiscal years from 2008 to 2011),
amounting to Euro 30.3 million and (iii) starting from July 1, 2014 following the modification of an EyeMed reinsurance
agreement with an existing underwriter, the Group assumes less reinsurance revenues and less claims expense with an
impact from the new contract for the twelve month period ended December 31 2014 equal to Euro 46.6 million.
The adjusted measures referenced above are not measures of performance in accordance with International Financial
Reporting Standards (IFRS), as issued by the International Accounting Standards Board and endorsed by the European
Union. The Group believes that these adjusted measures are useful to both management and investors in evaluating the
Group’s operating performance compared with that of other companies in its industry in order to provide a supplemental
view of operations that exclude items that are unusual, infrequent or unrelated to our ongoing operations.
Non – IFRS measures such as EBITDA, EBITDA margin, free cash flows and the ratio of net debt to EBITDA are included
in this Management Report in order to: