Annual Report 2016 - Fielmann

1 Annual Report 2016 20162015201420132012 Sales in m External sales 1)incl. VAT 1, , , , , in %+ + + + + sales excl. VAT1, , , , , in %+ + + + + sales (glasses) 000s7,9907,8127,5907,3207,070 Change in % + + + + + %+ + + + + profit (EBT)in in %+ + + + + income in in %+ + + + + flow from current business activity 2)in in %+ + + + assets in %+ + + + + ratio in % in in % + + of stores 704695 687 679671 Employees as at 31. ,87317,28716,73216,15815,494of which apprentices 3,1903,0652,9222,8742,779 Key data per share 3) Earnings per share (EPS) in flow per share 2)in per sharein ) Sales including VAT and inventory changes2) The main change to the previous years is due to a regrouping of the investments in the years 2016 , 2014 and 2013 3) Previous year s figures have been adjusted due to the stock split on 22 August 2014 Fielmann at a glanceKEY DATAF ielmann stands for fashionable eyewear at fair prices.

2 90% of all German citizens know Fielmann . Today, over 23 million people wear Fielmann glasses. In Germany we are the market leader in optical retail. We sell 50% of all new glasses. Fielmann is deeply rooted in the optical industry. Fielmann is a designer, manufacturer, distributor and optician. Fielmann has shaped the optical industry. In Germany, Fielmann ended the discrimi-nation against people wearing statutory health insurance glasses, made them socially acceptable, and democratised the world of fashionable and again, Fielmann has pioneered customer-friendly services in optical retail.

3 Examples include fashionable eyewear free of charge (Nulltarif), an open display of thousands of frames, the Best-Price Guarantee, the Three-Year Warranty and the Satisfaction guiding principle is You are the customer . We identify with our customers and endeavour to fulfil their wishes and desires. We advise every customer the way that we ourselves would wish to be advised: fairly, competently and in a friendly manner. Our opticians are not under pressure to talk customers into buying expensive glasses. Contents 2 Introduction 6 Management Board 8 Supervisory Board 12 Strategy 20 Shares 22 Industry 28 Management Report 58 Annual Accounts 65 Notes to the Accounts 131 Auditor s Report 132 StoresGlasses: Fielmann2 Annual Report 2016 FOREWORD Annual Report 2016 3 FOREWORD You are the customer is our guiding principle.

4 Customer satisfaction is our strategic priority. Time and time again, Fielmann has introduced pioneering customer-oriented services to the market in ways that had not previously existed in the optical industry. Our achievements include fashionable eyeware free of charge, a selection of several thousand frames on open display, a Best-Price Guarantee, a Three-Year Warranty on all glasses and the Satisfaction Guarantee. Our strict customer orientation also made us successful in 2016 . Fielmann increased the number of units sold to 8 million pairs of glasses (previous year: million).

5 External sales includ-ing VAT grew to billion (previous year: billion) and consolidated sales rose to billion (previous year: billion). We increased our pre-tax result to mil-lion (previous year: million) and the net income for the year went up to million (previous year: million). The pre-tax profit margin on sales amounted to company s development is positive and sustainable. Fielmann AG is virtually debt-free, with liquidity in the hundreds of millions. We include our shareholders in our success. The Management and the Supervisory Board will therefore recommend a dividend payout of per share to the Annual General Meeting (previous year: ).

6 This represents a divi-dend yield of based on the year-end clos-ing price. The total dividend payout amounts to million (previous year: million).For several decades now, Fielmann shares have proved to be a sound and stable invest-ment. The share price closed the year at The company has a stock market valua-tion of billion. Over 80% of our 17,873 employees are shareholders of Fielmann AG. Their personal investment not only displays their trust in the company but also acts as motiva-tional factor. Our customers benefit as a Shareholders, Dear Friends of the Company,G nther Fielmann4 Annual Report 2016 FOREWORDF ielmann owes its success to a clear and stringent customer focus.

7 Our employees em-pathize with their customers. They provide a standard of service that they would wish to receive themselves. Fielmann employees have the satisfying task of finding the best possi-ble solution for everyone, irrespective of the budget. Fielmann invests tens of millions in train-ing and continued professional development every year. Our apprentices undertake three years of optical training. Afterwards, they find a wide range of career opportunities at Fiel-mann. Whether at one of the 704 stores in Germany or abroad, at the Fielmann Acad-emy at Pl n Castle, at the production centre in Rathenow, the design studio in Munich or the company headquarters in Hamburg Fiel-mann offers exciting challenges in many recognizes elites.

8 We offer talented young people clear objectives and compelling values. Fielmann places great de-mands on its employees. Our stores generate between five and ten times the sales revenues of the average optician, and our bigger stores record up to fifty times the sales of an aver-age optician. Our flagship stores in big cities achieve turnovers of between 4 m and 20 m. Since stores of this size are unique in the industry, we have to train store manag-ers ourselves. The Fielmann Academy at Pl n Castle prepares the next generation of opti-cians for Europe. In Pl n, we train more than 7,000 opticians every year.

9 The Academy is also available to external opticians for master craftsman s courses and continuously strives to be better and more productive than the competition. We offer higher quality at lower prices. Based on our fundamental understanding of the market, we have developed the most modern optical stores of their kind. Fielmann stores feature state-of-the-art technology in eyesight testing, contact lens fitting and workshops, and also make use of the very latest in IT. The stores showcase the whole world of fashion eyewear, including major brands, international designers and the fashionable Fielmann Collection.

10 Fielmann combines eye-wear fashion with reasonable prices. 90% of our customers say they intend to come back to Fielmann for their next pair of glasses. The Fielmann brand is synonymous with fashion eyewear at the best price: With only 5% of all optical stores in Germany ( Fielmann : 589 stores; the industry: 11,850 shops), Fiel-mann has a sales market share of 21% and 53% in terms of unit sales. This is proof of the value for money we offer. If Fielmann were to sell glasses at the average retail price, the sales market share and the unit market share would be the is continuing its expansion at a sustainable pace.