Annual General Meeting Laurent Vacherot 2011 Highlights€¦ · Earthquake and tsunami in Japan in March 2011 Flooding in Thaïland in October 2011 European sovereign debt crisis

Annual General Meeting

Laurent Vacherot

2011 Highlights

May 11, 2012

Our Focus Today

2011 Results

Outlook

Essilor Share

22012 Annual General Meeting

Essilor in 2011 :

A Leader with a Solid Growth Potential

48,700 employees

Revenue: €4.2 billion

- International: 85% of revenue

57 countries

- 11 fast growing countries

More than 200 new products launched in 2011

More than 200 partnerships


Some Major External Events Occured in 2011

Earthquake and tsunami

in Japan in March 2011

Flooding in

Thaïland in October 2011

European sovereign

debt crisis

Earthquake

in New Zealand

Political instability in Africa

and in the Middle East


We Remain Focus on Executing Our Strategy

Increase exposure to fast

growing markets

Capture full growth potential of

developed countries

Continue to strengthen positions

in the mid-range market

Leverage Equipment and

Instruments division

Accelerate development of FGXI

14.6% of revenue in 2011 (11% in 2009)

Europe and USA Crizal sales growth > 10%

Partnership with Shamir Strengthening multi-network

Growth > 20 %*

Acquisition of Stylemark Development in Europe and Latin America

* Growth excluding currency effect


2011: Strong and Balanced Growth

+5.0%

+9.7%

+2.3%

+2.5%

Like-for-like

Bolt-on

acquisitions

Strategic

acquisitions

Growth excluding

currency effect

2010

Revenue

Developed

MarketsFast Growing

Markets

2011

Revenue

148

135

+7.3%*

(in €m)

* Like-for-like and

bolt-on acquisitions growth

Organic and

external growth

driving

performance

All regions contributed

to growth

2011 Revenue: €4,190m

-2.1%

Currency

effect

+7.7%

Reported

growth


2011 Revenue by Region and Division

Reported revenue in € millions

Growth excluding currency effect and strategic acquisitions2011 2010 % change

Optical Lenses and Instruments 3,796 3,551 +6.8%

Europe 1,471 1,402 +2.2%

North America 1,519 1,505 +4.6%

Asia-Oceania/Middle East-Africa 556 450 +20.0%

Latin America 249 194 +26.8%

Equipment 185 154 +21.9%

Readers 209 187 +4.5%

TOTAL 4,190 3,892 +7.3%


Bolt-on Acquisitions:

27 Transactions Representing €169m in Full-Year Revenue

Canada

1

United States

3

Latin America

6

Africa - Middle East

3

Europe

1

Asia

6

Oceania

1

Equipment

2

Readers

3

Russia

1


2 Strategic Acquisitions: Stylemark and Shamir

A US leader in readers and sunglasses

2011 Revenue: ~ $135 m

340 employees

More than 30 million sunglasses and

readers sold

Complementary to FGXI new channel

distribution

A large portfolio of brands:

Readers Optical Lenses

A growing leader in the mid-range

market

2011 Revenue: ~ $190 m

1,800 employees

Complementary with Essilor


Delivering Solid Results over the Long Term

Contribution from operations €748m – up 6.1%

› Contribution margin 17.9% of revenue

Profit attributable to equity holder €506m – up 9.4%

Earnings per share €2.44 – up 10.7%

Cash flow €723m – up 7.0%

* Cash flow = Operating cash flow excluding change in WCR

2011 Results


Improved Contribution from Core Business

while Increasing Marketing Expenditures

As a % of revenue

* Q1: FGXI + Signet Armorlite / H2: Shamir

Strategic

Acquisitions *

Organic

Acquisitions€40m Increase in

Marketing

& Sales


Optimized Capex to Support Growth

Capital expenditure net of disposals in € millions and in % of revenue

192

224

183

116124

192

Additional capacities

Contracts with key accounts

Innovation and Technology Centers


Cash Flow Up 7%

Operating cash flow

(excl. Δ WCR)

Capital increase

Other

Reported change in net debt

Capex

Δ WCR

Dividends

Net financial

investments

Share buybacks

+463

Cross-currency swap

In € millions


Net Gearing below 15%

In € millions

* Adjusted for acquisition-related costs in accordance with IFRS 3R


2011 Dividend Proposed to the General Meeting: €0.85

Average Annual Growth Rate of 9.1% since 2006


Our Focus Today

2011 Results

Outlook

Essilor Share


2012 Q1 Revenue up 23.6%

+8.5%

+18.5%

+3.3%

+6.7%

Like-for-like

Bolt-on

acquisitions

Strategic

acquisitions

Growth

excluding

currency effect

and change in

consolidation (Nikon and Chemi)

2011 Q1

Revenue

Developed

Markets

Fast Growing

Markets

2012 Q1

Revenue

67

54

+11.8%*

(in €m)

Organic and

external growth

driving

performance

All regions

contributed to

growth

2012 Q1 Revenue: €1,270m

* Like-for-like and

bolt-on acquisitions growth


2012 Q1 Revenue Growth by Region and by Division

EUROPE

+6.5%

NORTH AM.

+9.4%

INDIA

+49.3%

CHINA

+48.1%

OCEANIA

+6.1%

RUSSIA

+15.4%

AFRICA

MIDDLE-EAST

+29.8%ASEAN

+10.7%

READERS

+8.4%

EQUIPMENTS +13.8%

INSTRUMENTS +2.3%

Like-for-like and bolt-on acquisitions growth

LATIN AM.

+30.8%

JAPAN

+43.0%


Our Focus Today

2011 Results

Outlook

Essilor Share


A Good Share Performance in 2011 and Early 2012

Basis of comparison: 31/12/2010 closing

Essilor (31/12/2010): 48.18 €

CAC 40 (31/12/2010): 3,804.78 pts

DJW (31/12/2010): 11,577.51 pts

SSEC (31/12/2010): 2,808.08 pts

35

40

45

50

55

60

65

70

75

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févr.-

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juin-

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août-

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sept.-

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oct.-

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nov.-

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déc.-

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janv.-

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Essilor CAC40 Dow Jones Shanghaï

- CAC 40

- Essilor67,5

* Indices basés sur le cours Essilor au 31/12/10

Base comparaison : clotûre 31/12/2010

Essilor (31/12/2010) : 48,18 EUR

CAC 40 (31/12/2010) : 3804,78 pts

DJW (31/12/2010) : 11577,51 pts

SSEC (31/12/2010) : 2808,08 pts

Données mises à jour au 09/05/2012 au soir

53,8

CAC 40

Essilor + 40,0%

- 18,0%

- Dow Jones

- Shanghaï- 14,2%

+ 11,1%

- 18,0%

+ 40,0%


Share Performance Over the Past 16 Years

0

10

20

30

40

50

60

70

80

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

+ 63,4%

+ 827,6%

67,5

11,9

* Indice basé sur le cours Essilor au 02/01/1996

Base comparaison : clotûre 02/01/1996

Essilor (02/01/1996) : 7.27 EUR

CAC (02/01/1996) : 1908.38 pts

Données mises à jour au 09/05/2012 au soir

7,27

Annualized Performance :

Essilor : +15%

CAC : +3%

Basis of comparison : 02/01/1996 closing

Essilor (02/01/1996) : 7.27 €

CAC 40 (02/01/1996) : 1,908.38 pts


In Brief

Dynamism of the optical market- In particular in fast growing countries

Acceleration in developed markets- Economical uncertainties notably in Europe

Continuation of our acquisition and partnership strategy

Operational efficiency and financial solidity


Documents

Annual General Meeting Laurent Vacherot 2011 Highlights€¦ · Earthquake and tsunami in Japan in March 2011 Flooding in Thaïland in October 2011 European sovereign debt crisis