1. General Information

The company financial statements have been prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code. For setting the principles for the recognition and measurement of assets and liabilities and determination of the result for its company financial statements, GrandVision makes use of the option provided in Article 362(8) of Book 2 of the Dutch Civil Code. This means that the principles for recognition and measurement of the company financial statements of GrandVision BV (on 5 February 2015 converted into NV) are the same as those applied for the consolidated IFRS financial statements. The subsidiaries are stated at net asset value.

For the accounting policies for the company balance sheet and income statement, reference is made to the notes to the consolidated balance sheet and income statement. As the financial data of the Company are included in the consolidated financial statements, the income statement in the company financial statements is presented in condensed form (in accordance with Article 402, Book 2 of the Dutch Civil Code).

All amounts are presented in euros (€). Amounts are shown in thousands of euros unless otherwise stated.

Until 31 December 2013 the Company reported under Dutch GAAP, and in accordance with Article 408, Book 2, Title 9 of the Dutch Civil Code, consolidated accounts were not prepared. The Company changed the basis of preparation as of 1 January 2014 in order to comply with sub 8 of Article 362, Book 2 of the Dutch Civil Code. This results in the following changes:

Under Dutch GAAP, the Company valued its investment in subsidiaries at cost, or in the case of a permanent decline in value, at the lower value. Under the new basis of preparation, the Company values its investment in subsidiaries at net asset value as described in the accounting policy. This change in the basis of preparation results in a decrease in the investment in subsidiaries of €476,838 as of 1 January 2014. (1 January 2013: €579,950). Share premium decreased by €994,914 as of 1 January 2014 (1 January 2013: €991,847) as under Dutch GAAP, the merger of GrandVision and Pearle in 2011 was accounted for under acquisition accounting and the acquisition price was followed.

Under Dutch GAAP, pensions were accounted for based on the liability method. The change to IAS 19 resulted in an increase in the pension provision of €502 as of 1 January 2014 (1 January 2013: €491), and the impact of Actuarial gains/(losses) in equity (net of tax) as of 1 January 2014 is €76 (1 January 2013: €479).

Under IFRS, the long-term incentive plan is recognized on the balance sheet as a liability. This results in an increased liability of €26,992 as of 1 January 2014, a €2,085 equity impact as a result of the issuance of new shares and, for €1,547, a related deferred tax asset (1 January 2013: €22,500 and €481 respectively).

The above effects result in an increase of €155,889 in the 2013 net result, while total equity decreased by €506,398 as of 1 January 2014 (1 January 2013: €631,704).

1.1 Accounting Policies

Financial fixed assets

Investments in consolidated subsidiaries are measured at net asset value. Net asset value is based on the measurement of assets (including goodwill), provisions, and liabilities and the determination of profit based on the principles applied in the consolidated financial statements.