Notice on dividends

DIVIDENDS FOR NON-ITALIAN RESIDENTS

INFORMATION TO STOCKHOLDERS NOT RESIDING IN ITALY

At the Stockholders’ Meeting of Luxottica Group S.p.A. (the “Company”) which will be held in Milan on April 19, 2018, the Board of Directors of the Company will submit to stockholders a proposal to adopt a resolution for the distribution of a cash dividend in the amount of Euro 1,01 per Ordinary Share, and therefore per American Depositary Receipts (“ADR”) (each American Depositary Receipt represents one Ordinary Share), payable out of 2017 net income.      

The Company will pay the dividend to all holders of Ordinary Shares of record on April 24, 2018, and to all holders of ADRs of record on April 24, 2018. In order to be a holder of record on April 24, 2018 and thus be entitled to such dividend, you must have purchased the Ordinary Shares  on or before April 20, 2018 or the ADRs on or before April 20, 2018. 

The dividend will be paid on April 25, 2018, in Euro, by Monte Titoli S.p.A., authorized intermediary, to all depository banks of the stockholders. For the holders of ADRs, the dividend will be paid in one tranche to Deutsche Bank Trust Company Americas, as depositary of the Ordinary Shares and the issuer of the ADRs, through Deutsche Bank S.p.A., as custodian under the Deposit Agreement. Deutsche Bank Trust Company Americas anticipates that dividends will be payable to all the ADR holders commencing from and after May 2, 2018, upon satisfaction of the documentation requirements referred to below, at the US Dollar/Euro exchange rate in effect on April 25, 2018. 

Dividends paid to beneficial owners who are not Italian residents and do not have a permanent establishment in Italy to which the Ordinary Shares or ADRs are effectively connected are generally subject to a 26 percent substitute tax rate. Accordingly, the amount of the dividend paid to both: (i) holders of Ordinary Shares who are not Italian residents; and (ii) Deutsche Bank Trust Company Americas, as depositary of the Ordinary Shares and the issuer of the ADRs, through Deutsche Bank S.p.A., as custodian under the Deposit Agreement, will be generally subject to such Italian substitute tax. Therefore, the amount of the dividends that the holders of ADRs or holders of Ordinary Shares not residing in Italy will initially receive will be net of such Italian substitute tax.

All non-Italian resident owners of ADRs will be given the opportunity to submit to Deutsche Bank Trust Company Americas, in accordance with the procedure set forth by it, the documentation attesting to: (i) their residence for tax purposes in countries which have entered into anti-double taxation treaties with the Republic of Italy, pursuant to which reduced/NIL tax rates may become directly applicable; or (ii) their status as companies or entities subject to corporation tax and resident in States that are European Union Member States (the “EU”) or participants in the European Economic Area (the “EEA”) and are included in the list provided for by Italian Ministerial Decree, September 4, 1996 (as most recently amended and supplemented by Ministerial Decree March 23, 2017) (the “Decree”), as such entitled to a reduced tax rate of 1.2% on dividends distributed by Italian companies; or (iii) their status as pensions funds established in an EU Member State or EEA country included in the list provided for by the Decree, as such entitled to a reduced tax rate of 11% or, under certain conditions, to exemption from Italian taxation on dividends.

The Depositary has mailed to all ADR holders a document and necessary forms setting forth the detailed procedure to be used by ADR holders for the purposes of obtaining reduced/NIL tax on dividends provided for by the Italian law or the applicable tax treaties. You may also download those documents also here:

Deutsche Bank Trust Company Americas Reclaim Notice and Forms

As soon as the required documentation is delivered by Deutsche Bank Trust Company Americas to Deutsche Bank S.p.A., such bank shall endeavour to effect repayment of the entire 26 percent withheld or the balance between the 26 percent withheld at the time of payment and the rate actually applicable to the ADR holder under a tax treaty or under the Italian domestic legislation, as the case may be. By way of example, Italy and the United States (as well as many other countries) are parties to a tax treaty pursuant to which the rate of the tax applicable to dividends paid by an Italian resident company to a U.S. resident entitled to the benefits under the treaty may, in certain cases, be reduced to 15.0 percent. Therefore, U.S. resident ADR holders entitled to the 15.0 percent rate provided by the currently applicable Italy-United States tax treaty have the opportunity of being repaid a further 11 percent of the gross dividend, which is the difference between the 26 percent withheld at the time of payment of the dividend and the 15.0 percent substitute tax provided for by the Italy-United States tax treaty.

Please note that in order for ADR holders to take advantage of the accelerated tax refund (Quick Refund), the certification by the applicable Tax Authority must be dated before  Apr 25th, 2018 (the dividend payment date in Euro) and it should be received by Deutsche Bank Trust Company Americas on or before  August 14th, 2018 or directly by Deutsche Bank S.p.A. on or before August 27th, 2018.

The Company recommends to all ADR holders who are interested in taking advantage of such an opportunity that they request more detailed information as to the exact procedure to be followed from Deutsche Bank Trust Company Americas (ADR Department, telephone+1-212-747-9100; fax +1-866-888-1120, attn. Emilie Kozol) or directly from the Company’s headquarters in Italy (telephone +39.02.86334870; fax +39.02.86334092). 

ADR holders are further advised that once the amounts withheld are paid to the Italian tax authority, the ADR holders who are entitled to a reduced tax rate may only apply to the Italian tax authority to receive the reimbursement of the excess tax applied to the dividends received from the Company. Such procedure customarily takes years before the reimbursement is actually made. Therefore, the above-mentioned procedure for direct application of the reduced withholding rate was established by the Company in the best interest of its stockholders.

Last updated: Mar 09 2018