[PPT] - Half Year 2015 Results Presentation 20 August 2015 Forward looking PowerPoint Presentation

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Half Year 2015 Results Presentation

20 August 2015

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Forward looking statements

This presentation contains forward-looking statements that reflect GrandVision’s current views with respect to future events and financial and operational performance. These forward-looking statements are based

n GrandVision’s beliefs, assumptions and expectations regarding future events and trends that affect

GrandVision’s future performance, taking into account all information currently available to GrandVision, and are not guarantees of future performance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and GrandVision cannot guarantee the accuracy and completeness of forward-looking statements. A number of important factors, not all of which are known to GrandVision or are within GrandVision’s control, could cause actual results or outcomes to differ materially from those expressed in any forward- looking statement as a result of risks and uncertainties facing GrandVision. Any forward-looking statements are made only as of the date of this press release, and GrandVision assumes no obligation to publicly update or revise any forward looking statements, whether as a result of new information or for any other reason.

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Half Year 2015 Highlights

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 Revenue of €1,611 million

 Growth of 15.5% at constant exchange

rates and 6.5% organic growth

 Comparable growth of 5.2% (HY14: 3.7%)

 5,871 stores as of 30 June 2015

 Store network expanded by 57

during HY15  Improved profitability

 Adjusted EBITDA1 up 17.2% to €259

million (HY14: €221 million)

 Organic Adjusted EBITDA +11.6%  Adjusted EBITDA margin +4 bps

to 16.1% , or +76 bps to 16.8% excluding acquisitions

1,378

1,611

5,814

5,871

Revenue (€ million) Stores

HY14 HY15 FY14 HY15

1 Adjusted EBITDA = EBITDA excluding non-recurring items

16.0% 16.1%

16.8%

Adjusted EBITDA margin

HY14 HY15 HY15 (excl. acquisitions)

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Second Quarter 2015 Highlights

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 Revenue €827 million

 Growth of 15.3% at constant exchange

rates and 6.0% organic growth

 Comparable growth of 4.8%

(2Q14: 2.3%)  Adjusted EBITDA growth

 Adjusted EBITDA of €136 million

(2Q14: €115 million)

 Adjusted EBITDA +18.1%  Organic Adjusted EBITDA +9.6%  Adjusted EBITDA margin +15 bps to 16.5% 707

827

Revenue (€ million) 115

136

Adjusted EBITDA (€ million)

2Q14 2Q15 2Q14 2Q15

16.3%

16.5%

Adjusted EBITDA margin

2Q14 2Q15

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Comparable growth development

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0.8% 1.6% 4.3% 5.2% 2.3% 3.8% 6.1% 5.5%

4.8%

FY12 FY13 FY14 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

 Comparable growth of 4.8% in 2Q15 with sales momentum in all three segments  G4: 4.8%  Other Europe: 4.8%  LatAm & Asia: 5.3%  Comparable growth is impacted by the timing of commercial campaigns and the level of previous

years’ comparators

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Strategic priorities

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Strengthen and deploy group’s global capabilities Drive further comparable growth Optimize the existing store network Expand in current markets also through bolt-on acquisitions Enter new markets

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GrandVision’s Future Global IT Platform

Global ERP project

Global ERP project kicked off in 2014

 Key building block towards one harmonized global IT platform  Strong business enabler and source of efficiency gains  Empowering a globally integrated and proactive supply chain  Successful go-live in first four countries in June and July 2015  To be fully rolled out across all countries by the end of 2018 Other key building blocks

Fully integrated omnichannel platform for in-store, mobile and online
Global Learning Management System
IT shared service centres

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Global Store Standardization

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Objective: Implement harmonized store construction with optimized store design

Benefits  Improved in-store functionality and store-level operations  Reduced lead time before new openings or closing days in cases of refurbishment and relocation  Reduced OPEX and CAPEX per store  Flexibility to adapt to local requirements

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Expansion in Mexico

Short profitability ramp up cycle through  Global capabilities

Opening process
Store design
Commercial proposition
Assortment
Supply chain
Training
IT

 Low capex per store

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2010 2012 2013 2014 2015 HY15

Acquisition of Opticas Lux Acquisition of Sunglass Island Total 155 stores Total 174 stores Total 191 stores Total 208 stores Introduction

f +Vision

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HY15 Segment and Financial Performance

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Segment Review: G4

G4 – key figures HY15 2Q15 Revenue growth (constant rates) + 8.0% + 6.4% Revenue growth (organic) + 6.6% + 5.4% Comparable growth + 5.8% + 4.8%

Adj. EBITDA growth (constant rates)

+ 12.2% + 9.8%

Adj. EBITDA growth (organic)

+ 11.1% + 8.8%

Adj. EBITDA margin

20.7% 21.0%

HY15 Highlights

 Revenue growth of 8.0% at constant

exchange rates, with organic revenue growth of 6.6%

 Comparable growth of 5.8%

(HY14: 2.7%)

 Total number of stores increased

to 2,994 (from 2,979 in December 2014)

 Adj. EBITDA +12.2% at constant

exchange rates, to €207 million, with

rganic EBITDA growth of +11.1%

 Adj. EBITDA margin improved to 20.7%

(HY14: 20.1%)

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G4 Segment Highlights

Execution of successful commercial campaigns...

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… resulting in comparable growth and EBITDA margin expansion

6.8% 4.8% 5.8% 1Q15 2Q15 HY15 +78 +54 +66 1Q15 2Q15 HY15

Comparable growth EBITDA margin progression (in bps)

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Segment Review: Other Europe

Other Europe – key figures HY15 2Q15 Revenue growth (constant rates) + 21.5% +22.9% Revenue growth (organic) + 4.8% +5.9% Comparable growth + 3.2% + 4.8%

Adj. EBITDA growth (constant rates)

+ 15.8% + 25.7%

Adj. EBITDA growth (organic)

+ 5.8% + 13.3%

Adj. EBITDA margin

14.1% 15.4%

HY15 Highlights

 Revenue growth of 21.5% at constant

exchange rates, with organic revenue growth of 4.8%

 Comparable growth of 3.2% (HY14: 4.7%),

accelerating to 4.8% in 2Q15 after a weaker 1Q15

 Total number of stores increased

to 1,689 (from 1,660 December 2014)

 Adj. EBITDA +15.8% at constant exchange

rates to €61 million (HY14: €53 million)

 Adj. EBITDA margin - 70 bps to 14.1% due

to acquisitions

 2Q15 adj. EBITDA margin +35 bps to

15.4%

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Segment Review: Latin America & Asia

HY15 Highlights

 Revenue growth of >50% at constant

exchange rates, with organic revenue growth of 11.2%

 Comparable growth of 7.1% (HY14: 8.5%)  Total number of stores increased to 1,188

(1,175 in December 2014)

 Adj. EBITDA tripled to €7 million

(HY14: €2 million)

 Organic adj. EBITDA growth of 165.5%  Adj. EBITDA margin +208 bps to 3.7%

(HY14: 1.6%)

LatAm & Asia - key figures HY15 2Q15 Revenue growth (constant rates) + 55.5% + 62.3% Revenue growth (organic) + 11.2% + 10.6% Comparable growth + 7.1% + 5.3%

Adj. EBITDA growth (constant rates)

+ 267.5% + 647.3%

Adj. EBITDA growth (organic)

+ 165.5% + 175.0%

Adj. EBITDA margin

3.7% 5.0%

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EBITDA margin development in LatAm & Asia

2.3%
1.6%

2.3% 1.9% 2.1% 1.1% 3.8% 1.0% 2.3% 5.0% FY11 FY12 FY13 FY14 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

LatAm & Asia EBITDA margin progression being achieved through:

Increasing scale of the business through continued expansion
Successful integration of newly acquired businesses in China, Colombia, Peru and Turkey
Optimization of store network, especially Brazil
Implementation of global capabilities (procurement, supply chain, etc.)

EBITDA margin dilution following acquisitions in China, Colombia, Peru and Turkey

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348 372 400 449

259

14.5% 14.8% 15.3% 16.0% 16.1% 2011 2012 2013 2014 HY15

Adjusted EBITDA margin (%) Adjusted EBITDA (€ million)

Adjusted EBITDA and margin development

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16.8%

(excl. acquisitions)

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Cash Flow generation

253 322 333 380 188 119 208 220 222 124 3.1x 2.7x 2.1x 2.1x 1.8x 2011 2012 2013 2014 HY15 Net cash from operating activities (€mm); Free Cash Flow (€mm) Net debt / Adj. EBITDA

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1 Net cash from operating activities / EBITDA and Free cash flow / EBITDA 2 Net debt/EBITDA ratio impacted by late in year acquisitions

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Medium term financial objectives and dividend policy

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GrandVision's Supervisory Board has approved an interim dividend of 0.14 EUR per
share. The shares will trade ex-coupon as of 3 September 2015 and dividends will be

payable as from 8 September 2015. The record date will be 4 September 2015

Remainder over 2015 determined at 2016 AGM and paid in May 2016
After 2016, intention to pay ordinary dividend in line with medium to long term

financial performance

Target to increase dividend per share over time
Ordinary dividend payout ratio 25-50%

Dividend policy Medium term financial

bjectives
Annual revenue growth rate >5% at constant exchange rates
Average annual EBITDA growth in high single digits
Net debt / EBITDA ratio of max. 2.0x

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Questions and Answers

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SLIDE 20

Annex

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Consolidated Income Statement

Consolidated Income Statement (€ million) HY15 HY14 Revenue 1,611 1,378 Cost of sales and direct related expenses

442
361

Gross profit 1,168 1,017 Selling and marketing costs

811
713

General and administrative costs

180
148

Share of result of associates 3 1 Operating result 180 157 Financial income 4 2 Financial costs

12
18

Financial result

8
16

Result before tax 172 141 Income tax

54
44

Result for the period 118 97 Attributable to: Equity holders 109 89 Non-controlling interests 9 8

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Summarized Consolidated Balance Sheet

Summarized Consolidated Balance Sheet (€ million) 30 June 2015 31 December 2014 Property, plant and equipment 412 408 Intangible assets 1,349 1,334 Other non-current assets 165 166 Non-current assets 1,926 1,908 Inventories 277 240 Other current assets 294 266 Cash and cash equivalents 91 134 Current assets 661 640 Total assets 2,587 2,548 Total equity 794 668 Borrowings 787 960 Other non-current liabilities 248 273 Non-current liabilities 1,035 1,234 Trade and other payables 540 503 Borrowings 165 93 Other current liabilities 53 50 Current liabilities 758 646 Total equity and liabilities 2,587 2,548

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Cash Flow Statement

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Cash Flow Statement (€ million) HY15 HY14 Cash flows from operating activities Cash generated from operations 222 199 Tax paid

34
51

Net cash from operating activities 188 149 Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired

4
33

Investment in associates and property

1

Purchase of property, plant and equipment

51
52

Proceeds from sales of property, plant and equipment 5 2 Purchase of intangible assets

13
7

Proceeds from sales of intangible assets 1 Other non-current receivables 1 3 Interest received 2 2 Net cash used in investing activities

59
85

Cash flows from financing activities Purchase of treasury shares

51
Proceeds from borrowings

179 40 Repayment of shareholder loan

50

Repayments of other borrowings

309
47

Interest swap payments

1
2

Acquisition of non-controlling interest

1
Dividends paid
8
7

Interest paid

10
7

Net cash generated from/ (used in) financing activities

201
73

Increase / (decrease) in cash and cash equivalents

73
9

Movement in cash and cash equivalents Cash and cash equivalents at beginning of the period 54 22 Increase / (decrease) in cash and cash equivalents

73
9

Exchange gains/ (losses) on cash and cash equivalents 1

1

Cash and cash equivalents at end of period

18

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Contact us

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