Luxottica Group, S.p.A. (LUX)

Financing Activities.  The Company’s net cash provided by/(used in) financing activities was Euro (256.2) million, Euro 1,427.2 million and  Euro (349.9) million in 2008, 2007 and 2006, respectively. Cash used in financing activities in 2008 mainly related to the repayment of maturing outstanding debt, including a portion of the bridge loan entered into in connection with the acquisition of Oakley in 2007 and aggregate dividend payments to stockholders of Euro 223.6 million. Cash provided by financing activities in 2007 mainly related to the long-term loan of Euro 2.1 billion used to finance the Oakley acquisition, partially offset by the aggregate dividend payments to stockholders of Euro 191.1 million and the repayment of Euro 675.8 million of maturing debt which expired in 2007. Cash used in financing activities in 2006 consisted primarily of the repayment of long-term maturing debt of Euro 233.4 million and the payment of dividends to stockholders of Euro 131.4 million.

 

Financing Activities. The Company’s cash generated from/(used in) financing activities was Euro 1,427.2 million, Euro (349.9) million and Euro (350.0) million in 2007, 2006 and 2005, respectively. Cash generated from financing activities in 2007 consisted primarily of the proceeds of Euro 2,145.4 million from debt incurred for the acquisition of Oakley and for long-term repayments of maturing debt. Cash used in financing activities in 2006 consisted primarily of the proceeds of Euro 84.1 million from long term debt which were used to partially repay long-term maturing debt.  Cash used in financing activities for 2005 consisted primarily of net long-term repayments on maturing debt of approximately Euro 254.4 million. Dividends paid to our shareholders in 2007, 2006 and 2005 were Euro 191.1 million, Euro 131.4 million and Euro 103.5 million, respectively.

 

Financing Activities.  The Company’s cash used in financing activities was Euro 349.9 million, Euro 350.0 million and Euro 67.5 million in 2006, 2005 and 2004, respectively. Cash used in financing activities in 2006 consisted primarily of the proceeds of Euro 84.1 million from long-term debt which were used to partially repay Euro 215.3 million of long-term debt. Cash used in financing activities for 2005 consisted primarily of net long term repayments on maturing debt of approximately Euro 254.4 million.  Dividends paid to the Company’s shareholders in 2006 and 2005 were Euro 131.4 million and Euro 103.5 million, respectively. In 2004, our cash used in financing activities consisted primarily of: (i) the net proceeds of Euro 88.6 million from all the credit facilities and (ii) Euro 446.9 million of proceeds of Tranche B and Tranche C of the credit facility, which we used in connection with the acquisition of Cole, including the repayment of Cole’s existing notes. We borrowed Euro 405.0 million in June 2004 (consisting of the proceeds of Tranche A of the credit facility) to repay Euro 400.0 million of long-term debt. Additionally, we used cash provided by financing activities to reduce bank overdrafts and to pay Euro 94.1 million of dividends to our shareholders.

Financing Activities. Our cash provided by/(used in) financing activities for 2005, 2004 and 2003 was Euro (358.3) million, Euro (82.6) million and Euro 304.7 million, respectively. Cash used in financing activities for 2005 consisted primarily of net long-term repayments on maturing debt of approximately Euro 254.4 million and the payment of the annual dividend of Euro 103.5 million. In 2004, our cash used in financing activities consisted primarily of: (i) the net proceeds of Euro 88.6 million from all the credit facilities  and (ii) Euro 446.9 million  of proceeds of Tranche B and Tranche C of the credit facility entered into in June 2004, used in connection with the acquisition of Cole including the repayment of Cole’s existing notes. We borrowed Euro 405.0 million in June 2004 (consisting of the proceeds of Tranche A of the credit facility entered into in June 2004) to repay Euro 400.0 million of long-term debt. Additionally, we used cash provided by financing activities to reduce bank overdrafts and to pay Euro 94.1 million of dividends to our shareholders. Cash provided by financing activities for 2003 consisted primarily of: (i) the new Euro 200.0 million credit facility, the proceeds of which were used in connection with the acquisition of OPSM; (ii) the issuance in the U.S. of $300.0 million of notes (Euro 257.5 million), the proceeds of which were partially used for the OPSM acquisition and to refinance U.S. $140 million (Euro 120.2 million) of long-term debt; and (iii) borrowing on bank overdrafts to repay maturing long-term debt. These sources were offset by the payment of Euro 95.4 million of dividends to our shareholders. Additionally, we repurchased treasury shares for Euro 45.4 million in 2003 and these repurchase programs expired during 2004 with no additional shares purchased during 2004.

Our capital expenditures were Euro 229.4 million for the year ended December 31, 2005 and Euro 42.5 million for the three-month period ended March 31, 2006. It is our expectation that 2006 annual capital expenditures will be approximately Euro 200 million, in addition to investment for any acquisitions. We will pay for these future capital expenditures with our current available borrowing capacity and available cash.

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Financing Activities. Our cash provided by/(used in) financing activities for 2004, 2003 and 2002 was Euro (81.8) million, Euro 305 million and Euro (307.2) million, respectively. Cash used in financing activities for 2004 consisted primarily of: (i) the net proceeds of Euro 88.6 million from all the credit facilities (translated at the noon buying rate of Euro 1.00 = U.S. $1.2417 on September 30, 2004; actual borrowing was U.S. $ 110.0 million) and (ii) Euro 446.9 million (U.S. $605.0 million translated at the noon buying rate of Euro 1=U.S. $1.3538 on December 31, 2004) of proceeds of Tranche B and Tranche C of the credit facility entered into in June 2004, used in connection with the acquisition of Cole including the repayment of Cole’s existing notes. We borrowed Euro 405.0 million in June 2004 (consisting of the proceeds of Tranche A of the credit facility entered into in June 2004) to repay Euro 400.0 million of long-term debt. Additionally, we used cash provided by financing activities to reduce bank overdrafts and to pay Euro 94.1 million of dividends to our shareholders. Cash provided by financing activities for 2003 consisted primarily of: (i) the new Euro 200.0 million credit facility, the proceeds of which were used in connection with the acquisition of OPSM; (ii) the issuance in the U.S. of $300.0 million of notes (Euro 257.5 million), the proceeds of which were partially used for the OPSM acquisition and to refinance U.S. $140 million (Euro 120.2 million) of long-term debt; and (iii) borrowing on bank overdrafts to repay maturing long-term debt. These sources were offset by the payment of Euro 95.4 million of dividends to our shareholders. Additionally, we repurchased treasury shares for Euro 45.4 million in 2003 and these repurchase programs expired during 2004 with no additional shares purchased during 2004. Cash provided by financing activities for 2002 consisted primarily of: (i) the new Euro 600.0 million credit facility the proceeds of which were used to refinance maturing debt; (ii) the new U.S. $300.0 million credit facility the proceeds of which were partially used to refinance maturing long-term debt; and (iii) utilization of restricted cash to repay maturing long-term debt. These sources were offset by the payment of Euro 77.2 million of dividends to our shareholders. Additionally, we repurchased treasury shares for Euro 24.5 million.

 

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