2 0 1 4 – 2 0 1 5 O V E R V I E W

Standardizing Technology to

Drive Optimized Operations and

Improved Customer Experience3/26/15

WHO WE ARE:

LUXOTTICA GROUP

OVER 50 YEARS OF EXCELLENCE

Key Figures

Logistics Hubs

4Stores

>7.000Countries

130

People

>70.000OneSight

Patients

>8MN

Customers

72MN

Brands

>45Manufactured

Frames

>75MN

Group

1

SUCCESS STORY CONTINUES…

Consumers are statistics. Customers are people.

€3.1bnWHOLESALE SALES

€4.4bnRETAIL SALES

€7.6bnGROUP SALES

Enters

the Group

OVER 50 YEARS OF CAREFULLY PLANNED GROWTH

1961 / Inception

Leonardo Del Vecchio

founds Luxottica di

Del Vecchio enters

the group e C.S.A.S.

which in 1964 was

transformed into a

joint-stock company

named Luxottica S.p.A.

1971 / The first

Luxottica brand

optical eyewear

collection makes its

debut at the MIDO

international trade

fair in Milan.

1988 / OneSight

launched. The

foundation provides

free vision care and

eyewear around the

world to those in

need.

1990 / Luxottica

Group is listed on

the NYSE.

Acquisition

of the license

‘81 ‘90

1960 1970 1980 1990

‘95

‘99

‘99

‘96

1995 / Acquisition of

LensCrafters in

North America

1980

‘07

2000 2010 to Present

2000 / Luxottica Group is listed on

the Milan Stock Exchange’s Mercato

Telematico Azionario managed by

Borsa Italiana.

2001 / Acquisition of Sunglass Hut.

2003 / Acquisition of OPSM, one of

the leading optical retailers in

Australia and New Zealand.

2004 / Acquisition of Cole National in

North America.

Includes: Oliver

Peoples and The

Paul Smith License

‘09

‘08 ‘07

‘06

Enters

the Group

Acquisition

of the license

‘03 ‘05

2011 / Acquisition of Sunglass Hut, Brazil

and Mexico.

2011 / Acquisition of GMO, Latin America.

2012 / Acquisition of Tecnol, Brazil.

2012 / Acquisition of Sun Planet.

2014 / Acquisition of Glasses.com

‘14

‘13

‘12

‘13

ENTERS

THE GROUP

ProprietaryBrands

THE BEST BRAND PORTFOLIO IN THE INDUSTRY

LicensedBrands

A VERTICALLY INTEGRATED BUSINESS MODEL

PE

OP

LE

EN

VIR

ON

ME

NT

WHO WE ARE: Manufacturing

MANUFACTURING

Where We Are

Bhiwadi

Campinas

Agordo (BL)

Sedico (BL)

Lauriano (TO)

Rovereto (TN)

Cencenighe (BL)

Pederobba (TV)

DongguanFoothill Ranch (CA)

of productionis “Made in Italy”

50%

Dallas (TX) Atlanta (GA)

Columbus (OH)

Memphis (TN)

Foothill Ranch (CA) Agordo (BL) Dongguan

WHO WE ARE: Wholesale

100.000/ 140.000

LIFESTYLE

60.000/ 100.000

FASHION

15.000/ 25.000

PREMIUM FASHION

WHOLESALE

Coverage and Distribution Model

130 countries, 5 continents

Leadership in key markets: more than 40 direct subsidiaries representing over 90% of sales

Reaching approx. 200,000 doors

Leveraging a very strong brand portfolio

• Potential for additional growth fromexisting and new brands

• A differentiated distribution strategy by brand

Various new opportunities

• Emerging markets• New channels: department stores,

travel retail

Client-oriented service: a key differentiator

With a Selective DistributionA Global Coverage

No. DOORSBRAND POSITIONING

8.000/ 12.000

LUXURY

WHO WE ARE: Retail

SUN & LUXURYOPTICAL

Retail Network

Global Leader In Optical And Sun Retail - 7,000+ stores

SUN

MEXICO

SUN

BRAZIL

OPTICAL

EUROPE

SUN

SUN

SOUTHAFRICA

SUN

MIDDLE EAST& INDIA

SUNOPTICAL

CHINA & HONG KONG

OPTICAL

WESTERNLATAM

SUNOPTICAL

AUSTRALIA & NZ

SUNOPTICAL

NORTH AMERICA

Labs: Leading Industry Innovation

Excellence in Lens Finishing

Unique global footprint• 3 central labs in North America• 900+ in-store labs @ LensCrafters• 1 Oakley lab• 1 lab in China• South American Labs• EyeBiz• Other Partnerships

Operating 365 days, servicing ~3,000 stores~20 million lenses per year

Labs Leading Industry Innovation

Global Support for our brands

• LensCrafters

• Target

• Pearle

• Sears

• GMO

• OPSM

• China LC

• Europe

Oakley

China

Columbus

Memphis

Dallas

GMO

EyeBiz

At the forefront in lens innovation, introduced more than 120 new products over the past three years

Premium offerings

• Digital lenses

• Oakley optical sport lenses

• Exclusive Ray-Ban optical lenses

Rx Operations

Undisputed Lens Leadership

Processing• New internally designed

anti-reflective coating• New exclusive hard coating • Multi-axis technology enabling a

perfect fit

In-store technology• Digital lens capability &

anti-reflective coating in one-hour• Ray-Ban RoX inking technology• AccuFit software direct link to lab

Rx Operations

State of the Art Technology

WHO WE ARE:

Vision Care

WE ARE EXPERTS IN VISION CARE

Vision Care

PhilanthropyDistribution

Manufacturing

• Providing vision care since 1988

• Serving more than 36 million members

through 10,000 clients

• Fastest growing managed vision care

company in the industry

FASTEST GROWING IN THE COUNTRY

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012 2013

0

2,000

4,000

6,000

8,000

10,000

12,000

2009 2010 2011 2012 2013

36 MM members 10,000 clients

(MM)

Vision care is important to your entire family!

Babies &

Toddlers

The American

Optometric Association

recommends babies

should receive their 1st

professional eye exam

at 6 months and again

just prior to entering

school at 4 years old.

School-Age

Children1

80% of learning in the

first 12 years comes

through the eyes. And

up to 12% of children

may have vision

problems that can

affect learning.

Adults2

12% of adults require a

form of vision correction

but don’t use any. Every

yearly eye exams can

help detect vision

correction needs, as

well as, non-vision

related conditions.

Seniors3

Vision loss can be a

contributor to loss of

independence. Serious

eye conditions like

macular degeneration,

glaucoma & cataracts are

most prevalent in people

over the age of 60.

1 – Vision Council February 2012 Parent for Child Report

2 – Prevent Blindness America. http//www.preventblindnessamerica.us/sightsaved/about_html

3 - Vision Watch Vision Correction Standard 2012

Award-winning service day & night

362days a year, we’re here

Monday – Saturday:

7:30 – 11 p.m. ET

Sunday: 11 – 8 p.m. ET

99.5%1st call resolution rate

15sec. avg. speed of answer

Skill-based routing so your calls

are answered by the right vision

benefits expert every time

Certified Center of Excellence by

Benchmark Portal 5 years in-a-row

We are accessible, helpful, & great at what we do.

Members get fingertip access to:

• Provider locations and driving

directions

• Benefits eligibility

• In-network benefit details

• ID card

• FAQs

• Help line

• Log into app, shake phone for

ID Card!

THERE’S AN APP FOR THAT!

NEW SMART LOCATOR DIGITAL OPTICAL TECHNOLOGY

ACCUFITTM Digital Measuring

• Five times more precise than manual measurement

• Measures the exact location of your pupil, the

spacing of your eyes, and the shape of your glasses

for the most effective fit

Digital Eye Exams

• A more precise and accurate exam than

traditional measures so employees get the

most accurate care in the industry

• Captures retinal images to compare and

track care over time – often more

accurately identifying health conditions

before they become more serious

Positioned for success: EyeMed is adjusting its managed vision

care strategy so members can utilize their benefits with wearable

devices. In fact, connecting wearable technology with insurance will

be one of the key drivers of its adoption and growth.

THE FUTURE OF EYEWEAR

INDUSTRY

FIRST!

EYEMED’S FOCUS ON TECHNOLOGY

Members get fingertip access to:

• Provider locations and driving directions

• Benefits eligibility

• In-network benefit details

• ID card

• FAQs

• Help line

• Log into app, shake phone for ID Card!

THERE’S AN APP FOR THAT

First In The Industry

Available today for iPhone users,

coming soon for Android users!

Want to learn

more?

Click on the picture

above to check out

our video.

The Need

• Lack of access to vision care is a

leading global health issue1

• 733 mm adults and children suffer

from vision loss across globe

OneSight Impact

• Since 1988, OneSight helped more

than 8.5 mm people in 40 countries.

• OneSight vision clinics in 13

countries and 18 states.

• Sustainable vision centers in West

Africa and North America.

• More than 1.1mm students in North

America served.

1 Centers for Disease Control2 American Optometric Association

EYEMED TEAMING UP WITH ONESIGHT

Nonprofit organization providing sustainable access to quality vision

care and eyewear in underserved communities worldwide.

563mmpeople could have vision

restored with glasses.2

Luxottica’s Journey to Global Standardization

Luxottica’s Journey To Global Standardization

The vision for global standardization was to deliver best in

class, business driven, integrated systems that provides

accountability, drives faster/smarter processes, and supports

future growth.

• Visibility: A single, global view of the business.

• Productivity: Improved operating efficiencies via a common platform.

• Sustainability: Stronger accountability to support our growth through

acquisition business strategy.

• SAP Retail

• Oracle RPAS

• Luxottica Retail Analytics

Envision Optical

CRM MBPO*

*MBPO (Merchandise Business Price Optimization)

Luxottica’s Journey To Global Standardization

Luxottica’s Journey To Standardization

Basic Pillars of the Ciao! Operating Platform

GROW

SIMPLIFY

CONNECT

• Reduce Time to Market for new stores

• Enable faster expansion into new markets

• Maximize Customer Experience

• Minimize maintenance & enhancement complexity & cost

• Optimize integration with SAP

• Enhance Associate & Customer Experience with a simpler, more fluid process

• Enable the store as the “Point of Convergence for the Digital Journey”

• Gateway to CRM strategy

POS & In Store Systems

Operational Efficiency

Why we started this journey

Currently, Luxottica has a global retail presence of over 8000 stores, with

varying disparate POS systems throughout.

The current architectures are extremely complex and involve many

different technologies / components and multiple point to point flows.

Global POS is a multi-layered, multi-phased project, utilizing a Micros

Xstore application/solution. We began with a Proof of Concept and Pilot.

We gradually implemented additional functionality, external integrations,

and back office solutions.

This new, single POS system will provide global alignment by replacing

multiple systems and by streamlining access to new territories.

The end result is a robust, flexible, and expandable framework, enabling

brands and markets to select the functionality that they need/want.

Centralized transaction database

Centralized customer database

Integration with IDM Global Vault

Integrated Credit/Debit Authorization w/ PCI

Compliance

Dynamic Currency Conversion

Automated Deals & Discounts

Gift Receipts

Email Receipts

Complete Integration w/PLCC

Training Mode

Time & Attendance

Operational Efficiency

Current Ciao installation – what we gained with Micros

Omnichannel Integration w/ Locate

Mobile POS w/ Integrated Tendering

Advanced Deals & Discounts

Automated Warranty Procedure

Product Images

Complete integration with CRM system / Relate

Intraday Trickle Polling

Operational Efficiency

Future Ciao installation – what our roadmap looks like

Our Journey

Vendor Selection - 2012

1 Interview Key Themes 2 3

4

Qualitative Score

Presentation Score

5

6

7

Business Requirements & POS

Business Diagram

POS Architectural Models &

Assessment

Initial Evaluation: RFP Scoring &

Process

Initial Evaluation: RFP Functional

RequirementsFinal Evaluation:

Scenario Demos, Technical Deep Dive &

References

Final Vendor

Recommendation

December 2011

January 2012 January 2012

January 2012

February 2012

March 2012

April 2012

Development Plan - 2013

Store Operations Workstreams

SGH North America - Pilot

Optical

Proof of Concept

2013 2014

January February March April May June July August Sept. October November December January February

Sun Platform Prove Out• Test Lab Environment• SGH NA Configuration• SAP Integration

6 Pilot Stores Live• New In-Store Infrastructure proven (ISS / Igel)• Production Central Environment• End-to-End Data Flow Testing

Back Office Integrations (phased in ahead of POS where possible)• Must Have functions in order to roll out to all NA Stores• Most solutions external to POS

SGH NA Pilot• 50 Stores

SGH NA Beta• Shaded/ low risk stores• Early Read

Blueprinting Continues• Deliver Business Requirements• Deliver High Level Technical Designs

Blueprinting Checkpoint• Start blueprinting in Q2• Assess scenario based approach

SGH UK – 6 Pilot Stores

Configuration – 2013/2014 “The Layer Cake”

Base Xstore 5.5 Code

Luxottica Global Base

Luxottica Country Base (US, ES, PT, GB, etc)

Luxottica Region Base (California, Quebec)

Business Line Base (Sun, Optical)

Banner Base (SGH, LensCrafters, Clulow)

Banner Country

Banner Region

Sub-Brand(Apex, Sun Boutique)

Store Type(Dept Store, Airport)

Sun North America Rollout - 2014

Sun Development

Organizational Change Management and Training Program

Optical

SGH NA Beta

2014 2015

January February March April May June July August Sept. October November December January February

Sun Beta• Complete POS functionality• Integrated Authorization• IDM integration

Enhancements • Private Label Credit Card tender• Private Label Credit Card application and balance inquiry• Dynamic Currency Conversion

Development• Iterative Agile Cycles• Change Management

SGH NA Rollout

Formalized Program Kickoff• Resources• Agile Methodology

Rollout Cadence• 1,200 stores in US - 100 Stores / week April-October• 120 stores – 40 stores / week October - November• End-to-End Data Flow Testing

Sun Pilot• Depot/Build Process• On Site Install pilot• SAP Integration

Global Installations – Sun Roadmap

UK/Ireland70 Stores

Iberia175 Stores

US and Canada1,350 Stores

Europe65 Stores

Turkey50 Stores

Mexico250 Stores (2015)

South Africa180 Stores (2015)

Australia(2016)

China(2016)

South America(2016)

Dubai(2015)

Complete In Store Operating Suite

MICROS Xstore Core Application

SAP Integration

Xstore Locate

Integrated Tax Package

Reporting & Retail Analytics

Integrated Card Authorization

Mobile POS

Inventory Management

Daily / Associate Goals

Omni-ChannelIntegration

EmailSolution: TBD

Security & Authentication

HR / Associate Mgmt

Advanced Labor

Scheduling

Central Purchasing

Airport Customizations

Xstore Reporting

Commissions

Time & Attendance

CRM

Trickle Polling

Xstore Application (Sales & Services)

Department Store Model

POS Hardware

POS Screenshots – Main Screen

CIAO! Main Menu

POS Screenshots – Sales Transaction

CIAO! Sale

POS Screenshots – Customer Profile

Open House

Store Testimonials

“Our teams are in love with Ciao’s

simplicity, speed and efficiency.”

“Associates quickly became familiar

with the interface and really liked the

new, up-to-date hardware and clean

look.”

“Ciao offers several types of useful

reports.”

“The daily dashboard is great as it

provides a clear breakdown of what

we are achieving in a given day.”

“I like the easy sales process. The

screen prompts are very helpful,

especially as new staff members

work to increase their confidence

with this new system.”

Optical Solution

The Ciao! Luxottica Optical Operating Platform

Harmonize the processes and the tools used in 2400+ optical stores of 10 different brands globally, using the following principles:

– gather an holistic view of all optical stores processes and architectures, ensuring capabilities can be deployed globally

– re-use existing the CIAO! solution and integration; Minimize customizations to software packages enabling periodic upgrades

– Ensure capabilities are able to be leveraged in all sales channels for consistent customer experience

– Leverage “Agile” project methodology to achieve the foundational optical store experience.

The foundation project will be divided into two deliveries, developing the core x-store integration to the back office first and enabling optical centric store processes subsequently.

Additional projects within the program will be initiated to ensure we continually improve upon our foundational capabilities to meet the localized needs of the subsequent deployments

Business Capabilities

IdentificationOptical Suite Foundation

First delivery

March 2014 September 2014 March 2015

Foundation Project

Deployment

The Ciao! Luxottica Optical Operating Platform

Distinctive Optical Store

POSBest Practice POS

Ciao! POS

Solution

Prescription

Management

Optical Packages

Mgm. & Returns

Optical Deals &

Discounts

Optical Customer

Record

Vision Care &

Medicare Pricing

Simulation

Accufit

Makeabilty &

TraceabiltyLMS

Precision

Measurement

Insurance

Providers

LOMIntegrated Order

Management

Lab

Practice

Management

SAP IS Retail

Reporting

eCommerce

Core Optical Capabilities

Advanced Optical

Capabilities

Order Tracker

The Ciao! Luxottica Optical Operating Platform

MANUFACTURING

InnovationsOneNetwork

AFS2 Manufacturing Work Order

INSURANCE

InsuranceGateway

EyeMed

INVENTORY MANAGEMENT

SAPRetail

MIM

REPORTING

Operational Dashboard

SAPBI/BW

External

N.E.W.(Warranty)

Consult(Medicare)

FraudWatchReconNet

(Reconciliation)AAA/CAA(Billing)

ACCPAC(Billing)

Safety(Billing)

LRA

ASSOCIATE

MANAGEMENT

AssociateManagement

CeridianIDM

TIME AND

ATTENDANCE

Kronos

Enterprise System

Associate Facing App

GOALS

COMMISSIONS

Commission Engine

Goals

Questions

Thank You!