jp morgan healthcare conference - essilor group · pdf fileaccelerating our social impact...

JP Morgan Healthcare Conference January 12, 2016

A Unique

and Powerful Mission

Our Mission

3

Improving life by improving sight

Building the Next Vision Generation Through Inclusive Business and Strategic Giving

4

Awareness Empowerment Outreach

BoP Innovation Lab

New Consumer Activation

JP Morgan Healthcare Conference - January 2016

Accelerating our Social Impact Through Scalable Initiatives

5

CHINA

Last mile innovation

thru’ partnerships with

NGOs & local hospitals.

Established Essilor

Vision Foundation

MEXICO

Inclusive business

models in partnership

w NGOs

COLOMBIA

Partnership with

Volver Foundation

BRAZIL

Serving Urban

Poor through

Instituto Ver &

Viver

INDIA

Accelerating existing

initiatives + Skill

building +

Established Essilor

Vision Foundation.

N. AMERICA

Expansion of

Essilor Vision

Foundation

ASEAN

Established Essilor

Vision Foundation

FRANCE

Partnerships with

Secours Populaire &

SamuSocial

AFRICA

New partnerships

with NGOs to serve

the uncorrected in 22

countries + public-

private partnerships


Improving and Protecting the Vision of Every Inhabitant of the Planet

6

7.2 billion people worldwide

4.5 billion (63%) require

vision correction

1.9 billion

Corrected

100% should wear

sunglasses to protect

their eyes against UV rays

1.4 billion

Equipped

2.5+ billion

Uncorrected

5.8 billion

Unequipped

Source: Essilor – 2015 estimates


…in a Vast Market Driven by Demographics, Ageing, Urbanization and Lifestyle

7

2015 2020 Volume CAGR

7.2 7.6 Worldwide Population 1.1%

4.0 5.0 Urban Population 4.5%

4.5 5.0 Correction Needs c.2.1%

1.9 2.2 Correction Wearers c.3.0%

1.7 2.0 Myopia c.3.3%

2.1 2.4 Presbyopia c.2.5%

260m 310m Cataracts c.3.6%

120m c.135m AMD* c.2.6%

Demography (in billions of people)

Visual Impairments (in billions of people)

Visual Health (in millions of people)

Vision Industry (in billions of people)

* Age-related Macular Degeneration

Source: Essilor estimates, Worldbank, United Nation, CIA, World Population Prospects, Epidemiological and Marketing studies


Strategic Priorities

Fulfilling our Mission on a Bigger Playing Field

9

Superior Products & Innovative Services

Operational Efficiency

€27.0bn 6-7%

10-12% FAST-

GROWING

MARKETS €12.7bn 3-4%

PRESCRIPTION

LENSES

€5.8bn 14%

ONLINE

€8.5bn

SUNGLASSES

6-7%

Size and growth of industry segments by 2018

Fast-Growing Markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America.


Leveraging Key Competitive Advantages

10

Innovation Supply chain & Sourcing Acquisitions & Partnerships

Pricing power

Transfer innovations to the

sunwear categories

Stretch Essilor’s lead

c.75%

c.25% Other

Industry

Players

Essilor

Breakdown of R&D expenses

in the optical industry

Fast and reliable service

End-to-end solutions for

key accounts

Efficiency programs

A mass customization market

Innovation dissemination

New countries,

new business segments

Synergies

A highly fragmented industry

Essilor


An Effective Action Plan to Deliver Value Across Every Business

11

New Products

New Countries

Partnerships

Accelerate

Innovation

Consumer marketing

push

Leveraging Transitions

PRESCRIPTION

LENSES

Performance

& Mid-tier

Performance sunwear

Prescription solutions

Consumer marketing

SUNGLASSES

Grow fast in a

profitable channel

Coastal turnaround

Consumer marketing

Online solutions for

retailers

ONLINE

Acquisitions and partnerships delivering growth and synergies

FAST -

GROWING

MARKETS


Strategic Drivers in Developed Markets

12

Innovation Consumer marketing Key accounts

Prescription Lenses Sunglasses Online Fast-Growing Markets


Eyezen: Roll-out in All Distribution Networks

13

Traditional ECPs Online distribution Over the counter

Targeting both Ametropes and Emmetropes


Eyezenusa.com

Independent ECPs

& Chains


Capturing Growth in Every Sunwear Segment

14

“INFORMAL TRADE”

Performance

c. 12m units

>500m units

25-30m units Luxury fashion

Entry/mid-tier

Retail

sell-out price

Functional use



2015: Acceleration in Sunwear

15

Costa Bolon New territories & acquisitions

Expansion to the US

northeast coast

Pilots in Europe

Rx programs

Online acceleration

Chinese tier-1 cities

Travel retail

Prescription sunwear

and optical frames

Online acceleration

India, Turkey

A highly fragmented

market

Synergies



Continue to Develop Fast-Growing Online Segment

16

Develop online solutions Play business interconnections

Worldwide accessibility

Education

Category penetration & retrade

Segment the industry

Cross selling

Consumers feedbacks

Solutions for ECPs

Supply chain & sourcing



Headquarters

Building Global Presence in a Highly Fragmented Market

17

Leveraging Group’s Product Portfolio and Supply chain



http://www.framesdirect.com/

Significant Potential in Fast-Growing Markets

18

Fast-Growing Markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America.

400-500

400-500

200-300

Number of local lens players

Asia/Pacific Latin

America

Africa

Mid-tier Consumer marketing Sunwear Acquisitions



9-month 2015 Performance

& Outlook

9-month 2015 Revenue Growth Well Balanced Between Like-for-like Growth and Acquisitions

20

(1) Local acquisitions or partnerships.

(2) Transitions Optical and Coastal.com.

€ millions

9m 2014Revenue

Like-for-likegrowth

Bolt-onacquisitions

(1)

Strategicacquisitions

(2)

Currencyeffect

9m 2015Revenue

4,195

183

70 101

479

5,028

+19.9% +4.4%

+1.7%

+11.4%

+6.1%

+2.4%

+8.5%

+4.1%


Acceleration Driven by All Geographies

21

Like-for-like revenue growth Q3 2015 9m 2015

Developed Markets +4.0% 3.5%

Fast-Growing Markets(1) +7.6% 7.4%

TOTAL +4.8% +4.4%

o/w Lenses & Optical Instruments +4.8% +4.7%

o/w Sunglasses & Readers +9.9% +4.5%

(1) Fast-growing markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America

+ Robust growth in North

America and Europe

+ Product mix supported by

advertising campaigns

+ Continued momentum in fast-

growing markets

+ Sharp improvement in Sun &

Readers


Acquisitions Also Well Balanced Between Developed and Fast-Growing Markets

Europe

4

Latin America

7

Asia/Pacific/

Middle East/Africa

6

22

Fabris Lane

Optimax

Segment

Merve(1)

Grupo Vision

(1) The acquisition of Merve’s ophthalmic lens business remains subject to standard regulatory approvals.

GKB Vision

Prime Lenses

Eyres Optics

Vision Source

North America

2

Rozin

PERC/IVA

ECP

Jai Kudo Polska

Optic Club

Prime Optical

E-lens Eotica

Rx

NOME

19 Acquisitions in 2015 representing

combined annual revenue of c.€214m


2015 Guidance

23

Revenue Growth:

Like-for-like

Excluding currency effect

Contribution from operations(1)

as a percentage of revenue

8% to 11%(2)

> 4.5%

≥ 18.8%(2)

(1) Revenue less costs of sales and operating expenses (research & development costs, selling and distribution costs, other operating expenses).

(2) Barring any additional strategic acquisition.


Long Term Total Shareholder Return: +18.6% CAGR

24

Essilor Share Price

+16.2% CAGR

0,00

20,00

40,00

60,00

80,00

100,00

120,00

1975

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CAC 40

+5.6% CAGR

Essilor Share Price from October 28, 1975 (€0.2768) until December 31, 2015 (€115.05)

CAC 40 rebased from December 31, 1987 (1,000 points) until December 31, 2015 (4,637.06 points)


A Unique Combination Driving for Success

25

Employees aligned with shareholders through employee shareholder

program and Valoptec governance

A powerful mission

Poor vision is the biggest

handicap in the world

Innovation & partnerships

A clear strategy Strong teams

Entrepreneurial & global


jp morgan healthcare conference - essilor group · pdf fileaccelerating our social impact...

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