Milan - April 30, 2009

In accordance with SFAS-131 “Disclosures about Segments of an Enterprise and Related Information”, since 1998 Luxottica Group has reported disaggregated information for the following operating segments: Manufacturing and Wholesale Distribution, and Retail Distribution. Consistently with Management’s approach to review the results of each operating segment for purposes of making decisions with regard to resource
allocation and performance evaluation, net sales and income from operations for each reported segment have been calculated as follows:

Manufacturing and Wholesale Distribution:

• Net sales includes both sales to third-party customers and inter-company sales to the Retail Distribution segment, based on the actual transfer price from the wholesale entity to the retail one;
• Income from operations is related to total sales, i.e. income generated not only from sales to third-party customers but also from the intercompany sales to the Retail Distribution segment (so-called “manufacturing profit” generated on the retail sales);

 

Retail Distribution:

• Net sales to the retail consumers are included;
• Income from operations is related to the retail sales, considering the cost of goods acquired from the Wholesale segment at their actual transfer price, therefore excluding the so-called “manufacturing profit” of those sales, which is reported instead under the Manufacturing and Wholesale Distribution segment’s income from operations;

 

The Inter-Segment Transactions and Corporate Adjustments column shows the reconciliation to the Consolidated US GAAP results:

 

- At Net Sales level, the elimination of inter-company sales from the Manufacturing and Wholesale segment to the Retail one, as described above; 

- At Income from Operations level, the sum of three different effects: 

• profit-in-stock elimination: it represents the elimination of the “manufacturing profit” reported under the Wholesale segment for thosegoods sold to the Retail segment but not yet sold to the final retail customers (i.e. still “sitting” in inventory);

• corporate costs not allocated to a specific segment: typically, costs relating to the top management, board of directors, listing and nvestor’s relation cost, etc;

• and amortization of acquired intangible assets.

 

However, following several changes over recent years within Luxottica Group’s organizational structure described below, Management has decided, beginning in 2009, to use a different methodology to review the results of each segment for performance evaluation purposes:

- a reduction in Manufacturing and Wholesale Distribution segment sales and operating margin, due to the elimination of sales and profits related to the inter-company sales to the Retail Distribution segment ;

- an increase in the Retail Distribution segment’s profitability, due to the inclusion of the manufacturing profit generated by the Group on the inter-company sale of its manufactured goods ;

- a less volatile operating loss reported under the Corporate Adjustments column (due to the elimination of the profit-in-stock adjustment).

- Total Consolidated Net Sales and Income from Operations remain, of course, unchanged.

 

 

Consolidated financial highlights for the three-months period ended March 31, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	712.264	779.142	(92.702)	1.398.703
Operating income	172.765	67.305	(33.013)	207.057
% of sales	24,3%	8,6%		14,8%
2008 REVISED
Net Sales	619.561	779.142	-	1.398.703
Operating income	156.732	84.482	(34.157)	207.057
% of sales	25,3%	10,8%		14,8%

 

Consolidated financial highlights for the three-months period ended June 30, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	1.404.478	1.550.201	(201.535)	2.753.145
Operating income	346.249	153.549	(62.564)	437.234
% of sales	24,7%	9,9%
2008 REVISED
Net Sales	1.202.943	1.550.201	-	2.753.145
Operating income	304.443	204.069	(71.278)	437.234
% of sales	25,3%	13,2%		15,9%

 

Consolidated financial highlights for the six-months period ended June 30, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	1.404.478	1.550.201	(201.535)	2.753.145
Operating income	346.249	153.549	(62.564)	437.234
% of sales	24,7%	9,9%		15,9%
2008 REVISED
Net Sales	1.202.943	1.550.201	-	2.753.145
Operating income	304.443	204.069	(71.278)	437.234
% of sales	25,3%	13,2%		15,9%

 

Consolidated financial highlights for the three-months period ended September 30, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	522.063	782.190	(92.263)	1.211.991
Operating income	105.143	95.452	(5.514)	195.081
% of sales	20,1%	12,2%		16,1%
2008 REVISED
Net Sales	429.801	782.190	-	1.211.991
Operating income	69.981	138.343	(13.243)	195.081
% of sales	16,3%	17,7%		16,1%

 

Consolidated financial highlights for the nine-months period ended September 30, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	1.926.542	2.332.392	(293.798)	3.965.136
Operating income	451.392	249.001	(68.078)	632.314
% of sales	23,4%	10,7%		15,9%
2008 REVISED
Net Sales	1.632.744	2.332.392	-	3.965.136
Operating income	374.424	342.412	(84.521)	632.314
% of sales	22,9%	14,7%		15,9%

 

Consolidated financial highlights for the three-months period ended December 31, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	545.788	776.754	(86.066)	1.236.476
Operating income	94.115	42.469	(19.136)	117.448
% of sales	17,2%	5,5%		9,5%
2008 REVISED
Net Sales	459.722	776.754	-	1.236.476
Operating income	65.533	88.153	(36.238)	117.448
% of sales	14,3%	11,3%		9,5%

 

Consolidated financial highlights for the year ended December 31, 2008

thousand of EURO	Manufacturing and Wholesale	Retail	Corporate	Consolidated
2008
Net Sales	2.472.330	3.109.146	(379.864)	5.201.611
Operating income	545.507	291.469	(87.214)	749.763
% of sales	22,1%	9,4%		14,4%
2008 REVISED
Net Sales	2.092.465	3.109.146	-	5.201.611
Operating income	439.957	430.565	(120.759)	749.763
% of sales	21,0%	13,8%		14,4%

 

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