G4

in millions of EUR
(unless stated otherwise)

2014

2013

Change versus
prior year

Growth at constant currency

Organic growth

Growth from acquisitions

Revenue

1,820

1,686

8.0%

6.8%

4.8%

2.0%

Comparable growth (%)

3.7%

0.6%

310bps

Adjusted EBITDA

364

326

11.8%

11.1%

10.2%

0.9%

Adjusted EBITDA margin (%)

20.0%

19.3%

69bps

Number of stores (#)

2,979

2,823

5.5%

Number of employees (average FTE)

12,147

11,891

2.2%

The G4 is comprised of the Company’s four largest business units. Each of the G4 business units manages retail banners with own and franchise stores in multiple countries. The banners typically have leading positions in most of their markets. As of the end of 2014, there were 2,979 stores in the G4.

The G4 is characterized by mature operations, which demonstrate the potential and performance levels of the overall business. The G4 has solid cash generation and higher than average levels of profitability and operating margins. GrandVision has been growing its presence in the G4 through network expansion and in-market consolidation.

Revenue

Revenue increased by 8.0% to €1,820 million in 2014 including a positive impact of 1.2% from a stronger British pound against the euro. At constant currencies revenue growth was 6.8%. Excluding the impact from the acquisitions revenue growth came in at 4.8%. Comparable growth for the segment amounted to 3.7%, primarily driven by very good results in Germany and the United Kingdom and the ongoing recovery of Spain.

During 2014, GrandVision strengthened its market-leading position through further in-market consolidation in the United Kingdom and Germany. In the United Kingdom, the smaller optical retail chains Rayner and Conlons were acquired, while in Germany, the optical retail chain Robin Look was acquired. The effect of store expansion in 2014 and the full-year effect of store expansion in 2013 also had a positive impact on 2014 revenue.

In total, the number of stores in the G4 increased from 2,823 to 2,979 at year-end 2014, mainly as a result of organic store expansion in France and the Netherlands and the acquisitions in this region.

Adjusted EBITDA

Adjusted EBITDA in the G4 increased by 11.1% at constant exchange rates to €364 million in 2014. Organic growth of adjusted EBITDA was 10.2%, while acquisitions had a positive impact on adjusted EBITDA of 0.9%. The adjusted EBITDA margin increased to 20.0% in 2014 from 19.3% in 2013. The organic growth of adjusted EBITDA in the G4 was primarily driven by the development of the comparable stores, which grew 3.7% in revenue. This development was led by Germany and the United Kingdom which achieved above-average comparable growth in the region. Operating expenses in the G4 increased at a lower rate than revenue and gross profit, resulting in the increase in adjusted EBITDA and adjusted EBITDA margin.