LensCrafters 2015 Annual Report Download - page 9

Management Report as of December 31, 2015 Page 5 of 35
1 including the EyeMed Adjustment (as defined above) which is equal to Euro 174.3 million and 46.6 million
for the year ended December 31, 2015 and 2014, respectively;
1 excluding the costs incurred by the Group equal to Euro 66.4 million related to the reorganization of Oakley
and other minor projects for the year ended December 31, 2015;
1 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, for the year ended December 31, 2014;
1 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 for the year ended December 31, 2014.
The Group’s income from operations, EBITDA and net income attributable to Luxottica Group stockholders adjusted for
items set forth above are as follows:
(In millions of Euro)
Adjusted Measures10 2015 % of
net sales 2014 % of net sales
%
change
Adjusted net sales 9,010.8 100%
7,698.9
100% 17.0%
Adjusted cost of sales 3,009.0 33.4%
2,621.3
34.0% 14.8%
Adjusted income from operations 1,442.8 16.0%
1,177.6
15.3% 22.5%
Adjusted EBITDA 1,919.7 21.3%
1,561.6
20.3% 22.9%
Adjusted net Income attributable to Group’s Stockholders 854.0 9.5%
687.4
8.9% 24.2%
Net Sales. Net sales increased by Euro 1,184.3 million, or 15.5%, to Euro 8,836.6 million in 2015 from
Euro 7,652.3 million in 2014. Euro 398.8 million of this increase was attributable to increased sales in the manufacturing
and wholesale distribution segment during 2015 as compared to 2014 and Euro 785.5 million was attributable to increased
sales in the retail distribution segment during 2015 as compared to 2014. Adjusted net sales in 2015 and 2014, which
include the EyeMed Adjustment (as defined below), were Euro 9,010.8 million and Euro 7,698.9 million, respectively.
Effective July 1, 2014, adjusted net sales were impacted by the modification of terms of an EyeMed reinsurance agreement
with an existing underwriter whereby the Company now assumes less reinsurance revenue and less claims expense. This
modification resulted in a reduction in reinsurance revenue and claims of Euro 174.3 million and Euro 46.6 million in 2015
and 2014, respectively (the “EyeMed Adjustment”).
A reconciliation of adjusted net sales, a non-IFRS measure, to net sales, the most directly comparable IFRS measure, is
presented in the table below. For a further discussion of such non-IFRS measures, please refer to the “Non-IFRS Measures:
Adjusted Measures” discussion following the year-over-year comparisons:
(in millions of Euro) 2015 2014
Net sales 8,836.5 7,652.3
- EyeMed Adjustment 174.3 46.6
Adjusted net sales 9,010.8 7,698.9
Net sales for the retail distribution segment increased by Euro 785.5 million, or 17.6%, to Euro 5,244.0 million in 2015
from Euro 4,458.6 million in 2014. The increase in net sales for the period was partially attributable to a 3.9% increase in
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For a further discussion of Adjusted Measures, see the “Non-IFRS Measures” section of this Report.