LensCrafters 2015 Annual Report Download - page 6

Management Report as of December 31, 2015 Page 2 of 35
15.6 percent in 2015. Additionally, adjusted operating income4 in 2015 increased by 22.5 percent to 1,442.8 million from
Euro 1,177.6 million in 2014. Adjusted operating margin5 in 2015 increased to 16.0 percent from 15.3 percent in 2014.
In 2015 net income attributable to Luxottica Stockholders increased by 25.1 percent to Euro 804.1 million from
Euro 642.6 million in the same period of 2014. Adjusted net income6 attributable to Luxottica stockholders increased by
24.2 percent to Euro 854.0 million in 2015 from Euro 687.4 million in 2014. Earnings per share (“EPS”) was Euro 1.68 and
EPS expressed in USD was 1.86 (at an average rate of Euro/USD of 1.10951). Adjusted earnings per share7 (“EPS”) was
Euro 1.78 and adjusted EPS expressed in USD was 1.98 (at an average rate of Euro/USD of 1.10951).
Careful control of our working capital as well as a significant improvement in our operating results, created strong free cash
flow8 equal to Euro 767.0 million. Net debt as of December 31, 2015 was Euro 1,005.6 million (Euro 1,012.9 million at the
end of 2014), with a ratio of net debt to adjusted EBITDA9 of 0.5x (0.6x as of December 31, 2014).
2. SIGNIFICANT EVENTS DURING 2015
January
On January 19, 2015 the Board of Directors appointed Adil Mehboob-Khan as the Group CEO for Markets and Massimo
Vian as the Group CEO for Product and Operations. The appointment of a CEO for Markets and a CEO for Product and
Operations, entrusting them with all executive responsibilities, is a governance model that the Group believes is more
aligned to the global competitive landscape and able to fully grasp growth opportunities. It also unites the Group’s
organizational model with its strategic vision.
April
At the Stockholders’ Meeting on April 24, 2015, Group’s stockholders approved the Statutory Financial Statements as of
December 31, 2014 as proposed by the Board of Directors and the distribution of a cash dividend of Euro 1.44 per ordinary
share. The aggregate dividend amount of Euro 689.7 million was fully paid in May 2015.
May
On May 14, 2015, the Company and Prada S.p.A., part of Prada Group, announced the renewal of an exclusive license
agreement for the design, production and worldwide distribution of prescription frames and sunglasses under the Prada and
Miu Miu brands. The 10-year agreement will extend through December 31, 2025.
4
For a further discussion of adjusted operating income, see the “Non-IFRS Measures” section of this Report.
5
For a further discussion of adjusted operating margin, see the “Non-IFRS Measures” section of this Report.
6
For a further discussion of adjusted net income, see the “Non-IFRS Measures” section of this Report.
7
For a further discussion of adjusted earnings per share, see the “Non-IFRS Measures” section of this Report.
8
For a further discussion of free cash flow, see the “Non-IFRS Measures” section of this Report.
9
For a further discussion of net debt and net debt to adjusted EBITDA, see the “Non-IFRS Measures” section of this Report.