GrandVision Capital Markets Day 20.09.18

Amsterdam, Netherlands 3. Understanding the Levers

of our Strategy

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 on 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.

Disclaimer

3.Understanding the

Levers of our Strategy

Understanding the levers of our strategy

4

Turn customers into fans

Create leading digital value proposition

Boost end-to-end Product Value

Chain

Create organization of

the future

Strengthen global market position

through acquisitions

• Enable every OpCo to operate full omni-channel business• Develop global Sunglass e-commerce business• Create localized online subscription model and global pure-play e-commerce business for Contact Lenses

• Evolve to fully integrated end-to-end Product Value Chain across the organization • Acquire / License consumer relevant Exclusive Brands in spectacles and Sunglasses segment• Strengthen strategic supplier relationships• Continue to optimize retail space and staff efficiency via TechCenters

• Create organization of the future and further drive digital transformation • Optimize operating & leadership model for central services as well as local execution excellence• Boost ability to attract & retain best possible talents worldwide

• Transform customers into lifetime fans with reshaped customer value proposition• Update store experience and product offer plus advanced eyecare management• Cover white spot of GenZ market with new digital and social native concept • Boost sales in Sunglasses and Contact Lenses through adjusted go-to-market approach• Strengthen Exclusive Brands portfolio

• Secure further profitable growth in G4 and other established territories through all growth levers• Continue to create a platform for growth in the US– the largest optical retail market in the world– with consecutive

acceleration through all growth levers • Grow Asia relevance through mid-size acquisitions and consecutive organic expansion

Turn Customers

into Lifetime Fans

Where we are today: Key statistics

1 Net Promoter Score2 Only in the G4 Countries 6

FOOTFALL:+700k visits

per day

FOOTFALL:+700k visits

per day

Average age of customers2

15.0%

10.4%

9.8%

16.9%21.0%

14.8%

12.1%

<20 21-30 31-40 41-50

51-60 61-70 >71

Avg. 2018: 61 (Avg. 2017: 59)N

PS1 16 million

spectaclessold in 2017

44,000spectacles sold

on average per day

1. DISCOVER 3. EYE CHECK2. PLAN

Pre

-sales

Du

ring sale

sP

ost-sale

s

4. BROWSE5. DECIDE6. BUY

7. RECEIVE 8. WEAR 9. CARE

Refining the customer journey to provide a bespoke experience

7

Our target audience breaks down into four broad categories

2. Convenience SeekerAvailability, certainty and speed are keyLess concerned by brandWants to complete the entire journey on-the-go

3. TrendSetterSees eyewear as fashion accessory

Style and price importantLoyal to carefully selected socially &

environmentally conscious brands with great storytelling

Shops online mostly

4. Careful PlannerStyle important

Requires high-quality content, expertise and pre-sales service

Researches firstValues ability to customize offer

1. Constrained PragmatistLoyal to local storeTrusts local optometrists Prioritizes service Quality is key

EYE HEALTH UNAWARE

INTRINSIC STYLE

EXTRINSIC STYLE

EYE HEALTH AWARE

8

3. TrendSetter

1. Constrained Pragmatist 4. Careful Planner

2. Convenience Seeker

Eye health Aware

Intrinsic Style

Extrinsic Style

Eye health Unaware

1. Improve and grow

• Reduce pain points

• Upgrade store and service concept

• Provide omni-channel options

• Increase NPS¹ and lifetime value

2. Convince and recruit

• Adjust the customer journey

• Push digital business and new brands

• Create new business models for GenZ / Millennials

Our challenge is to reshape the customer value proposition to satisfy existing and new customers

1 Net Promoter Score

New

Cu

rren

t

9

Moving from a functional approach to a customer-centric experience offering

10

From To

Purchase Experience

We sell We provide

Optical products High-quality, fashionable, affordable eyewear

With average re-purchase cycle of 2-3 years At the moment of customer need

Through a large network of stores during opening hours Through any channel, 24/7 anywhere

To a mass market of customers Tailored to the individual needs of people

By store staff By friendly and knowledgeable eyecare experts

Who have a reactive interest Who have a proactive interest

In addressing customer needs In advising on fashion, lifestyle and eye health

During sales process Before, during and after the sales process

Liked Loved

Customers Fans

GrandVision of tomorrow

GrandVision of today

Fanometer to provide new customer-centric KPIs that will augment traditional KPIs to measure success

Traffic

Appt. bookingconversionRevenue

Marketing ROIPurchase

conversion

Online / offline nps(for each part of

customer journey)

Community engagement

Favourite products

Social customer sentiment

Cross-channel engagement

Customer lifetime value -churn & loyalty

11

Improved store concept currently being tested

12

Contemporary store design

1

Stronger communal service approach

2

Central service desk

3

Open and customer-friendly product navigation

4

Omni-channel touchpoints

5

State of the art eyecare center

6

Accelerate Solaris to become a globally leading sunglass destination

13

Build strong retail brand supported by a strong product branding strategy

1

Revamp assortment strategy leading to greater differentiation

and attractiveness

2

Move faster to digital, multi- and omni-channel activities

3

Continue to drive further profitability

4

Roll out the upgraded POS concept

5

Create dedicated organization to drive accelerated growth

6

Capture strong contact lenses category growth through improved customer experience

14

Better leverage the stores as a category entry point to drive contact

lens subscription

1

Increase customer conversion through improved first fit experience

2

Drive stronger involvement to contact lens subscription plan

3

Develop and establish a unique Exclusive Brands range

4

Disproportionately grow online through omni-channel and pure-play

concepts such as Lenstore and Linsenmax

5

Create Leading Digital Value Proposition

Customers increasingly expect an integrated, consistent and personalized experience

1 Source: iCare GrandVision customer survey 2017 2 Source: Euromonitor3 Source: Javelin Group benchmarks

of optical sales in store were influenced by

digital channels1

The modern customer is more likely to research products at some point

along the customer journey before

purchasing the product

11%

CAGR expected for the online eyewear market

(2018-2023e)2

Sales of eyewear products purchased

online expected to grow over twice as fast as the overall eyewear market

(4.6%)

3-5x

total lifetime value of omni-channel

customer vs. single channel customer3

Customers using both online and physical stores

to complete their purchase are worth more over their

lifetime than customers that shop using online or

stores only

30%

of marketing spend by retail companies is on

digital channels

Retail companies are spending an increasing

amount of their marketing budget on digital advertising to capture high-value

customers

10%

of optical retail sales expected to be

completed online by 20232

As retailers build capabilities and customers seek

convenience, penetration of online sales is

expected to reach a tenth of total optical sales by

2023

16

56%

But first, let’s understand the definition of e-commerce and omni-channel in a GrandVision context

Online journey end-to-end

E-fulfilment(delivery to home)

Digital merchandising & pricing (synced with store in case of banner e-commerce)

Online transaction

Online communities e.g. social, influencer, peer reviews

Digital non-product content e.g. blogs, competitions

Digital product content

Search & compare tools

E-commerce (“Digital only”) Proposition

Growing need to create a best-in-class customer-driven omni-channel offering augmented by “digital only e-commerce”

Purchase online, collect in store

Research online, purchase in store

ROPO (Research Offline Purchase Online)

In-store online purchasing(employees with “endless aisle” on tablet)

Eye exams in store, prescription in app

Appointment booking online (driving traffic to store)

Digital merchandising in store

In-store experience shared on social media

In-store CL subscription initiation, managed online

Online voucher redeemed in store

Store inventory visibility available online

Customer recognition in all channels

Store locator

Omni-channel Proposition

17

Focus on digital & omni-channel aims to improve all steps of the customer journey; driving NPS, traffic, appointment booking, purchase and retention

18

1. DISCOVER 3. EYE CHECK2. PLAN

Pre

-sales

Du

ring sale

sP

ost-sale

s

4. BROWSE5. DECIDE6. BUY

Appt. booking conversion rate

Purchase conversion rate (on- and offline)

Retention- Re-purchase rate- Cross-sell- Word of mouth

recommendations

New traffic(on- and offline)

KPIs7. RECEIVE 8. WEAR 9. CARE

Offering sufficient flexibility across the customer journey to suit specific lifestyles and needs

19

Discover Plan Eye test Browse BuyDecide Receive Wear Care

Before During After

Searches contact lenses on Google

and finds GrandVision banner site

Uploads eye-test prescription online from previous eye test with GrandVision optometrist

in-store

Sees purchase history and browses contact lens options suited to

him; expert advice available through live

chat

Purchases preferred contact lenses and has

the option to collect from store or have delivered to

home next day

Sets up monthly subscription to have new lenses delivered

at the same time every month

Prompted via email when new eye-test

recommended; books in-store appt. online

Sees cool new GrandVision frames on Instagram and

clicks ‘book appt. now’ button which links to

GrandVision appt. booking tool

Completes pre-eye-test questionnaire online before her eye-test in-store

which optometrist uses to inform in-store assessment

After her eye-test in-store, she

browses other cool frames with the

help of GrandVision fashionista

Uses smart mirrors in-store to take

pictures wearing several frames which she then shares with

friends for advice

Purchases her favourite pair in-store with option to pick up or have delivered to home; prescription

uploaded to her GrandVision mobile

app

Shares her purchase via social media; looks to GrandVision for other

product recommendations & eye-health content online

Online

Online

Online

Online

Online

Online

Online

Online

In-storeIn-store

In-storeOnline

“John, the busy convenience-seeker”

“Jess, the fashion-conscious trend setter”

Investing in a global digital ecosystem focused on serving the specific needs of our customers in a multi-disciplinary manner

Four global priority digital pillars

Our global digital platform:

1. E-commerce: Roll out globally a best-in-class, modular and fully scalable e-commerce platform to all our markets –including markets that currently have no e-commerce and existing markets that need upgrades

2. Omni–channel: Improve omni-channel functionalities by connecting digital with stores and employees

And supplementary engines:

3. Marketing data science & analytics: Develop data science & analytics tools for our local marketing teams and provide enhanced customer insights to accelerate digital marketing capabilities and pave the way for personalized marketing

4. Digital content and media: Create best-in-class engaging digital content for various channels and customer touchpoints e.g. website / e-commerce, mobile, social, store digital screens etc. We are also building a best-in-class digital media strategy to deliver the right content with the right messages to the right customers through the right channels at the right time of need

20

3. Marketing data science, analytics and customer insights

1. Global e-Commerce platform

2. Omni-channel

4. Digital content & media

7K stores

26K in-store employees

Strong digital roadmap already established

Current status

Set up of advanced, scalable, modular, global e-commerce /omni-channel platform underway

• State-of-the-art robust technology that provides fast roll out to 40+ countries

• Centrally developed and funded but will be locally operated

• Platform allows our markets flexibility to run and operate e-commerce at lower cost with less IT dependency

• Supports rapid innovation

• High-quality design and content caters for enhanced customer experience on mobile

• The platform was piloted (Minimum Viable Product) in Portugal 12 weeks ago and we are already seeing great results in terms of sales, traffic, conversion etc.

Next steps

• Develop the platform further to enhance feature and design and make it roll out ready

• Fast roll out to key markets within next 12-24 months including Netherlands, Sweden, Denmark, United Kingdom, Spain, Italy, etc.

• Addition of apps to complement

• Strengthen the team with talented designers, developers, data engineers, data scientists and digital marketeers

• Build data science & analytics tools to accelerate data-driven digital marketing

21

1%in annual

comparable growth

contribution

• Build omni-channel enablers to drive traffic to store

• Develop data-driven, highly-personalized digital marketing, CRM and social stack

60%of sales to be influenced by

digital

• Continually improve the omni-channel experience and provide customers with a seamless journey and single, unified experience across all channels

GrandVision’s 2023 digital targets

• Roll out e-commerce engine across all banners and pure-plays (e.g. Solaris)

• Pure-play digital M&A• E-marketplace partnership

e-commerce share of total sales

10%

22

Boost end-to-end

Product Value Chain

Product Value Chain (PVC) is the strategic foundation that brings the key building blocks alive

24

Driving increased efficiency & scale for a superior customer experience via an end-to-end process:

1 2 3 3

3 4 4

1

Build Assortment

Insight & Innovation

Source & Procure

Forecast & Replenish Order

Stock Accountability

Warehouse & Produce

Stores in Show- room

model

LOCAL / GLOBAL GLOBAL / LOCAL GLOBAL LOCAL

LOCAL LOCAL REGIONAL

GLOBAL

Fans

Customers

Agility & speed on assortment

A better customer proposition

Controlled flows & inventories

Improved COGS

Delivering

Product Development

Portfolio & Assortment

Product Branding & Licensing

Developing an enhanced customer-centric portfolio of differentiated and affordable eyewear

25

A strong, harmonized and

differentiated assortment to our

consumers

Increased traffic and conversion

Seamless online operations

Greater control on profitability

Strong, customer-centric product cycle to deliver… … new assortment strategy to be implemented consistently across our entire network…

Current Assortment Future Assortment

1

Consumer Insights

Third-Party

Brands

Private Label

Iconic Brands

Exclusive Distribution

Exclusive Brands

Private Label

…to achieve:

Streamline lens range and create a stronger and differentiated customer proposition

26

…to deliver:

Lens category management

Exclusive Brands (70%)

Thirdparty brands (30%)

Margin protection

Product differentiation

Speed of delivery

Current Assortment Long-Term Ambition

2

Third-Party

Brands

Exclusive Brands

Private Label

Third-Party

Brands

Private Label

Customer fulfilment to rely on clear objectives and optimised supply chain

… which will deliver:

Ensure:

• on-shelf availability of best sellers

• Reduced customer lead time

• Supply chain cost optimization

• Improved time to market

Planning, forecasting & replenishment

Store showroom model Regional hubs

27

Supply chain goals… … to be achieved through focus on key enablers…

3

Quality assurance & Regulatory affairs

Fresh Assortment & reduced

lead times

Higher quality at lower cost

Lower breakage

High product availability

Ability to deliver across any channel

Shifting from TechCenters to regional hubs

Manufacturing

• Cut – Edge – Fit

• Remote edging

Warehousing

• Storage

• E-fulfilment

• Logistics

28

An omni-channel business driven concept… … will need versatile regional hubs

3

Regional hubs: Center of logistics excellence

1

2

3

4

5

6

7

Efficient store processes including pick-up and returns

Reliable delivery information to customers

Regionalized hub operations

Right regionalized inventories for online & offline sales

Cost efficient and easy to use returns

Efficient replenishment & Implementation of showroom model

One master data standard

1

2 3 4 5

6

7Master data

Demand &Supply planning

Online orPOS order

Regional hub

Home delivery

Store

29

Delivering:

High product availability coupled

with lower inventories

Shorter customer lead time

Ability to deliver across any channel

3

Each OpCo will be connected to a regional fulfilment hub

Current field: 15 Technical Centers

• 8 in EUROPE

• 5 in LATAM

• 1 in USA

• 1 in CHINA

30

Higher quality at lower cost and in a shorter time to our

customers

Optimizing inventories while

maintaining margins

Decreasedbreakage

3

Delivering: