2015 Results  February 19, 2016

1. Introduction 

Hubert Sagnières – Chairman and Chief Executive Officer

2015 Results

2

1. Introduction

A Strong Performance Delivered in 2015 2014 adjusted Revenue

Contribution from operations(3)

2015

(1)

Growth

€5,670m

€1,057m

As a percentage of revenue

18.6%

Earnings per share

€3.05

Dividend per share(4)

€1.02

+18.4% +8.5% +19.4%

(2)

€6,716m €1,263m 18.8%

+17.0%

€3.57

+8.8%

€1.11

(1) Adjusted in 2014 for non-recurring items resulting mainly from major acquisitions (Transitions Optical, Coastal and Costa). (2) Growth at constant exchange rates. (3) Contribution from operations corresponds to revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses). (4) To be submitted for shareholder approval at the May 11, 2016 Annual General Meeting

2015 Results

1. Introduction

4

Balanced Growth Between Developed Markets and Fast-Growing Markets

DEVELOPED MARKETS  2015 Revenue: €5.2bn  Growth ex. currency: ~7%

FAST-GROWING MARKETS  2015 Revenue: €1.5bn  Growth ex. currency: ~14%

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

2015 Results

1. Introduction

5

New Fields of Innovation to Serve a Much Larger Pool of Consumers Protection & Prevention

Over The Counter

2015 Results

1. Introduction

6

Lens Mix Driven by Brands and Services in Developed Markets

 Growth firmly above market growth

 Sustained momentum in the US  Europe above expectations 2015 Results

1. Introduction

7

Potential in Fast-Growing Markets Remains Intact for all Lines of Products Strong Drivers

Consumer Marketing

M&A Targets

Number of local lens players

India

Columbia

China

Russia

200-300

Brazil

Latin America Argentina

Turkey

400-500 Asia/Pacific

400-500 Africa

GCC countries

 Double digit like-for-like growth

(1)

 Strong demand for better vision

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

2015 Results

1. Introduction

8

Sunwear and Online Driving Growth Acceleration

®

 BolonTM & Costa : High growth driven by internationalization, prescription and online  EyeBuyDirectTM & Frames DirectTM: >30% growth with good profitability  Coastal: Successful repositioning, set to accelerate 2015 Results

1. Introduction

9

Bolt-on Acquisition Strategy Pursued in Every Business Segment PRESCRIPTION LENSES

SUNWEAR

ONLINE

FAST GROWING MARKETS

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

2015 Results

1. Introduction 10

61,000 People Focused on a Powerful Mission

Improving and Protecting the Vision of 7.2 Billion People Worldwide

Members of Essilor’s Executive Committee

2015 Results

1. Introduction 11

2. Financial and Operating Performance 

Laurent Vacherot – Chief Operating Officer

2015 Results

12

Full-Year 2015 Performance vs. Guidance  Revenue Growth:

FY 2015

February 2015 Guidance

 Like-for-like



4.6%

> 4.5%

 Excluding currency effect



8.5%

8% to 11%



18.8%

≥18.8%

 Contribution from operations as a percentage of revenue

(1)

(1) Contribution from operations corresponds to revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses).

2015 Results

2. Financial and Operating Performance 13

2015 Revenue Up 18.4% € millions

566 101 118 261

+9.9%

+1.8%

+2.1%

6,716 +18.4%

+4.6%

 +6.7%

5,670

 +8.5% 2014 Revenue

(1) (2)

Like-for-like growth

Bolt-on acquisitions (1)

Strategic acquisitions (2)

Currency effect

2015 Revenue

Local acquisitions or partnerships Transitions Optical (3 months) and Coastal (4 months)

2015 Results

2. Financial and Operating Performance 14

Q4 Like-for-like Growth Accelerates to 5.3% 5.9%

5.8%

6.5%

8.5%

 Best performance since Q1 2012

 Sustained momentum in the US, very good performance in Europe  Robust growth in Fast-Growing Markets  Brisk acceleration of Sunglasses & Readers driven by Bolon™ and Costa®

3.2% 1.7% Bolt-on acquisitions(1)

1.9%

1.4%

 Like-for-like growth

4.0%

4.4%

4.8%

5.3%

Improved contribution from bolt-on acquisitions  10 transactions signed  Carry-over effect for 2016

 Positive currency impact of 5.9% Q1 2015 (1)

Q2 2015

Q3 2015

Q4 2015

Local acquisitions or partnerships

2015 Results

2. Financial and Operating Performance 15

2015 Revenue by Region and Division Change

2014

2015

Change (reported)

(excluding currency effect)

4,970

5,840

+17.5%

+8.5%

North America

2,038

2,587

+26.9%

+8.4%

Europe

1,653

1,777

+7.5%

+6.4%

Asia/Pacific/Middle East/Africa

898

1,071

+19.3%

+8.1%

Latin America

381

405

+6.2%

+18.9%

Sunglasses & Readers

503

673

+33.9%

+14.9%

Equipment

197

203

+2.7%

-9.0%

5,670

6,716

+18.4%

+8.5%

Reported revenue in € millions

Lenses & Optical Instruments

TOTAL

2015 Results

2. Financial and Operating Performance 16

19 Acquisitions Representing €214m in Full-Year Revenue North America 2

Europe 4 Fabris Lane

Optic Club Optimax

Jai Kudo Polska

PERC/IVA ECP

Merve(1) NOME

Vision Source

GKB Vision Number of acquisitions by segment  Prescription Lenses: 15  Sun: 2  Online: 2

(1)

Latin America 7

Rozin

Prime Lenses

Grupo Vision

Rx

Asia/Pacific/ Middle East/Africa 6

Segment Eyres Optics

e-lens

Prime Optical eÓtica

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

2015 Results

2. Financial and Operating Performance 17

Leveraging Vision Source and PERC/IVA to Boost Value Creation in the US  Boosting our proximity with more than

5,500 leading eye doctor practices

Independent eye care professionals are capturing ever more value Sell-out figures in $ for spectacle lenses

 Vision Source: the largest US service network with ~4,000 members  PERC/IVA: ~4,000 eye doctors

2005

Independent ECPs

50%

Optical Chains/Other

50%

Independent ECPs

53%

Optical Chains/Other

44%

Internet

~3%

 New levers to expand business in the US  Accelerate category development and new product penetration  Increase consumer reach  Extend the product line (contact lenses, sunwear, readers, etc.)  Improve efficiency from manufacturers to PoS

 Accretive to EPS as of 2016

2015

Source: VisionWatch, Essilor estimates

2015 Results

2. Financial and Operating Performance 18

Sustained Momentum in North America 2015 revenue growth excluding currency effect, across all business divisions

7.6%

LENSES & OPTICAL INSTRUMENTS

SUNGLASSES & READERS

HIGHLIGHTS 

Success of Essilor key brands: Varilux®, Crizal®, Transitions® and Xperio®



Key partnerships with leading Eye doctor’s alliances



Double digit growth at Costa®



Strong increase in sales at EyeBuyDirect™ and Frames Direct™

Innovation  Launch of Varilux Comfort® 3.0 & Varilux® Physio® 3.0  Launch of Transitions® Xtractive® Online  Introduction of Kodak® lenses  Continued turnaround at Coastal

  

Expansion of geographic footprint of Costa® Development of Costa® prescription sunglasses offering New contract for FGX

2015 Results

2. Financial and Operating Performance 19

Improved Product Mix in Europe 2015 revenue growth excluding currency effect, across all business divisions

7%

LENSES & OPTICAL INSTRUMENTS

HIGHLIGHTS 

Branded products supported by advertising campaigns



Contribution of key accounts



Strong growth in the UK, Russia and in Southern and Eastern Europe



Acceleration of Lensway™ online sales

Innovation  Launch of Eyezen™  Launch of E-SPF® 35 in France  Innovations adopted by key accounts Consumer marketing  Strong growth of Crizal® in the United Kingdom  Positive impact of advertising campaigns in France, Germany, Spain, Italy and Russia

SUNGLASSES & READERS





Acquisition of Fabris Lane in the UK Strong growth at Polinelli

2015 Results

2. Financial and Operating Performance 20

Asia : Continued Momentum in Fast-Growing Markets (1)

2015 revenue growth excluding currency effect, across all business divisions

Asia FGM: 11.3% Total Asia: 9.5%



LENSES & OPTICAL INSTRUMENTS

  



SUNGLASSES & READERS



HIGHLIGHTS 

Growth above 20% in India



Double digit growth in domestic China



Strong growth in Middle East and Africa

Positive impact of media campaigns in India and China Acquisition of Prime Lenses and GKB Vision in India Expansion of geographic footprint Sales flat in developed countries

Expansion of Bolon™ to travel retail in 8 major airports in Asia and 2 leading cruise lines Acquisition of Merve in Turkey

(1) Asia/Pacific/Middle East/Africa

2015 Results

2. Financial and Operating Performance 21

Latin America: Fast Development Driven By Organic Growth and Acquisitions 2015 revenue growth excluding currency effect, across all business divisions

17.5% 



LENSES & OPTICAL INSTRUMENTS

HIGHLIGHTS 

Record year in M&A activity: 7 transactions



Strong growth in Colombia, Mexico and Chile



Brazil: soft growth in H2 but share gains



New footprint in Costa Rica and Nicaragua

Success of Kodak® lenses in the mid-tier range in Brazil Ramp-up of a contract with a leading regional optical chain in Chile

Consumer marketing  Strong growth of Crizal® in Brazil  “Power of 3” advertising campaign in Colombia (Varilux®, Crizal®, Transitions®)

Online  Launch of Glasses4you.com.br  Acquisition of e-Otica and e-lens

2015 Results

2. Financial and Operating Performance 22

Fast-Growing Markets, Sunwear and Online Enhancing Group Like-for-like Growth Acceleration FAST-GROWING MARKETS  

Revenue: €1.5bn 13.6% combined growth, o/w:  



 

5 in Asia/Pacific/ME 1 in Russia 7 in Latin America

8 new countries 2018 ambition: €2.8bn(1)

Revenue: ~€860m Acceleration in Sunglasses 

10.9% in Amera(3) 16.7% in Latin America

 

13 acquisitions   



SUNWEAR



 

Success of Polarized lenses Impact of media campaigns

2018 ambition: €1.1bn(1)

Revenue: ~€220m ~12% like-for-like growth 

Fast growth at Bolon™ & Costa® Improvement at FGX 2 acquisitions in UK and Turkey

Sunlenses (Rx(2) & plano) growing double digit  

ONLINE

 

 

High growth at EyeBuyDirect and FramesDirect Coastal turnaround Costa® and Bolon™ websites

Turnkey solutions for retail 2 acquisitions in Brazil  

Contact lenses Sun and eyeglasses

2018 ambition: €400-500m(1)

Fast-growing markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America (1)At 2013 average exchange rates (2)Prescription sunlens revenue are estimates based on extrapolated data from laboratory reporting system (3) AMERA: Asia, Middle-East, Russia, Africa

2015 Results

2. Financial and Operating Performance 23

(2)

Contribution from Operations up 19.4% € millions

2014 Adjusted(1)

2015

Change

Revenue

5,670

6,716

+18.4%

Gross profit

3,328

4,012

+20.6%

% of revenue

58.7%

59.7%

1,365

1,647

24.1%

24.5%

1,057

1,263

18.6%

18.8%

EBITDA % of revenue

Contribution from operations (2) % of revenue

+20.6%

+19.4%

(1) Adjusted in 2014 for non-recurring items resulting mainly from major acquisitions (Transitions Optical, Coastal), except for revenue. (2) Contribution from operations corresponds to revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses).

2015 Results

2. Financial and Operating Performance 24

New Improvement in Contribution from Operations at 18.8% of Revenue

(1)

Contribution from operations as a percentage of revenue

0.6%

-0.6%

-0.3% 0.5%  Trade up/Innovation  Efficiency gains  Synergies

18.8%

18.8%

18.6%  Prepare the future: FGM, 2.5 NVG, …

2014 Adjusted(2)

(1) (2) (3)

Transitions Optical without synergies (Q1)

Other Acquisitions(3)

2015 after acquisitions

Operating leverage Incremental media and synergies spend

2015

Contribution from operations corresponds to revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses). Adjusted in 2014 for non-recurring items resulting mainly from major acquisitions (Transitions Optical, Coastal and Costa). Bolt-on acquisitions (local acquisitions or partnerships) and Coastal (January-April, 2015).

2015 Results

2. Financial and Operating Performance 25

Contribution from Operations(1) before PPA: 20.1%

€ millions

2013

2014

(2)

Adjusted(2)

5,065

5,670

6,716

920

1,057

1,263

(30)

(64)

(86)

-55 bps

-110 bps

-130 bps

(11)

(22)

(25)

Adjusted Revenue Contribution from operations (1) PPA Impact on contribution from operations (1) Full EPS impact (in euro cents)

(1) (2)

2015

Contribution from operations corresponds to revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses). Adjusted in 2014 for non-recurring items resulting mainly from major acquisitions (Transitions Optical, Coastal and Costa).

2015 Results

2. Financial and Operating Performance 26

Profit Attributable to Equity Holders Up 18% € millions

2014 Adjusted (1)

Contribution from operations ( 2 )

2015

1,057

1,263

Other income (expenses), net

(68)

(80)

Operating profit

989

1,183

Financial income (expense), net

(44)

(63)

(246)

(308)

26.0%

27.5%

Net profit

702

813

Minority interests

(60)

(56)

Income tax Effective tax rate

Profit attributable to equity holders

642

757

Earnings per share (in €)

3.05

3.57

 Higher net debt average vs. 2014  €/$ exchange rate impact

 Further integration of Transitions Optical  Growth in the US and €/$ impact

(1) Adjusted in 2014 for non-recurring items resulting mainly from major acquisitions (Transitions Optical, Coastal, and Costa). (2) Contribution from operations corresponds to revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses).

2015 Results

2. Financial and Operating Performance 27

Capital Expenditure: Continuing to Invest in Long-term Growth 7%

285

6%

232 5%

192

321 5.6% 227

4%

4.6%

4.8%

4.7%

4.0% 3%

2% 2011

2012

2013

Capital expenditure in € million (net of disposals)

2014

2015

As a percentage of revenue

2015 Results

2. Financial and Operating Performance 28

Healthy Free Cash Flow Generation: +13% CAGR since 2012 (1)

€ millions

Operating cash flow (excl. change in WCR)

51

Change in WCR

327

Capital expenditure

251

Dividends

805

Net financial investments

153

Foreign exchange and other

1,245

+867

Capital increase Reported change in net debt

46 296

(2)

(1) Free cash flow = net cash from operating activities less change in WCR and capital expenditure. (2) Including €154m of foreign exchange impact in 2015 (€167m in 2014)

2015 Results

2. Financial and Operating Performance 29

Net Debt as of December 31, 2015: 1.3x EBITDA 2,168

2,089

 Strong cash generation

 Operating Cash Flow: +21.8%  Disciplined Working Capital Management

1,793

 1.3

1.3

Negative impact of €/$ exchange rate

369

 Acquisitions 2013

2014 Net debt

H1 2015

2015

Net debt/EBITDA

2015 Results

 Vision Source and PERC/IVA  Earn-out on past transactions

2. Financial and Operating Performance 30

Dividend per Share: up 8.8% to €1.11 1.02

1.11

(a)

(a)

0.94 0.83

0.85

0.88

 23rd consecutive YoY increase (b)

172

177

185

198

216

237



2015 Total Shareholder Return above 25%

 Optional scrip dividend 2010

2011

2012

Payout (in € million)

2013

2014

2015

Dividend per share (in €)

(a) To be submitted for shareholder approval at the May 11, 2016 Annual General Meeting (b) Cash-out corresponding to a full payment of the dividend in cash

2015 Results

2. Financial and Operating Performance 31

Strong Acquisition Momentum: 13 Acquisitions Since October 2015

Europe 3

Number of acquisitions by segment  Prescription Lenses: 11  Online: 2

North America 2

Asia/Pacific/ Middle East/Africa 1 Latin America 7

2015 Results

2. Financial and Operating Performance 32

2016 at a Glance Revenue



Launch of new products



Benefits of optimized media spend



Ramp up of Dr. alliances’ partnerships in the US



Continued dynamics of Group key Sunwear brands



Acceleration of online platforms



Strong bolt-on acquisitions contribution

Financials

2015 Results



Contribution from operations: Innovation/New products Efficiency programs Funding of growth initiatives Dilution from bolt-on acquisitions



Tax rate at around 2015 level at constant exchange rates



Capital expenditure between 4% and 5% of revenue



Continued strong free cash flow generation

2. Financial and Operating Performance 33

On Track with our 2018 Ambition 2013

2015

2018

(1)

4.6%

>6%

EBITDA

€1.17bn

€1.65bn

~€2.0bn

Free Cash Flow

€0.55bn

€0.87bn

~€1.0bn

Net Debt

€2.1bn(2)

€2.1bn

~€1.0bn(3)

Like-for-like Growth

3.6%

(1) 2012-2013 average (2) Net debt at June 2014 including the financing of Transitions Optical and Coastal acquisitions (3) Excluding new strategic acquisitions

2015 Results

2. Financial and Operating Performance 34

3. A Broader, Stronger Company 

Hubert Sagnières – Chairman and Chief Executive Officer

2015 Results

35

There are 7.2 Billion People in the World

2015 Results

3. A Broader, Stronger Company 36

Improving and Protecting the Vision of Everyone in the World World population

2030

8.2 billion

2015

7.2 billion Source: Worldbank

2015 Results

3. A Broader, Stronger Company 37

Poor Vision, the World’s Biggest Disability VISION CORRECTION

63% in need of vision correction

7.2 billion people worldwide

1.9

2.5+

billion

billion

Corrected

Uncorrected

Myope growth rate: 3.3%

1.6 billion in Asia

Presbyope growth rate: 2.5%

550 million in Africa 170 million in Latin America

VISION PROTECTION

100% should protect their eyes (sun, UV, blue light)

1.4

5.8

billion

billion

Equipped with sunglasses

Sunglasses market growth: 6-7% High potential for prescription sunwear

Unequipped Massive under-penetration in Fast-Growing Markets Cataract/Eyelid cancer

Source: Essilor – 2015 estimates

2015 Results

3. A Broader, Stronger Company 38

Significant Growth Potential DEMOGRAPHY In billions of people

Worldwide Population

Urban Population

2015

7.2

4.0

CAGR

0.9%

2.0%

VISION CORRECTION 2030

8.2

5.0

In billions of people

2015

Correction Needs

4.5

Correction Wearers

1.9

Myopia

Presbyopia

1.7 2.1

CAGR

2.1%

3.0%

3.3%

2.5%

VISION PROTECTION 2030

6.0

In billions of people

2015

CAGR

5.2%

2030

Sunglass Wearers

1.4

AMD*

120m

2.6%

200m

Cataracts

260m

3.6%

440m

2.9

3.0

2.7 3.0

* Age-related Macular Degeneration Source: Essilor estimates, Worldbank, United Nations, CIA, World Population Prospects, Epidemiological and Marketing studies

2015 Results

3. A Broader, Stronger Company 39

A Still-Fragmented Industry Prescription lenses

Manufacturers

Distributors & Laboratories

Retail

Essilor market share in units

Sunglasses

150 to 200 Small operators

Readers

250 to 350 Manufacturers

1,500 to 2,000 Local operators

350,000+ Eye Care Professionals

E-tailers

Drugstores, Duty free shops, Mass merchandisers, Sporting goods

1,260 million

610-650 million

250-300 million

prescription lenses

pairs of nonprescription sunglasses

pairs of readers

Source: Essilor – 2015 estimates

2015 Results

3. A Broader, Stronger Company 40

Still Many People with Bad Vision

2015 Results

3. A Broader, Stronger Company 41

Essilor, a Pure Play in a ~€85bn Market … (1)

VISUAL HEALTH SOLUTIONS Spectacle Lenses Contact Lenses Pharmaceutical

Readers Sunglasses

Surgical

Frames

W E A R E R S

(1) Sell-out value for contact lenses, spectacle lenses, readers, sunglasses and frames Source: Essilor – 2015 estimates

2015 Results

3. A Broader, Stronger Company 42

… and an Undisputed Leader with only 25% Market Share… PRESCRIPTION LENSES

SUNGLASSES

READERS

ONLINE

Market units

Market units

Market units

Market value

~1,260 m lenses

610-650 m pairs

250-300 m pairs

~€4bn

Essilor market share

Essilor market share

Essilor market share

Essilor market share

~41%

~5% ~15%

Total market share in units:

~15%

~25%

Source: Essilor estimates, Estin

2015 Results

3. A Broader, Stronger Company 43

… In a Bigger and Faster-Growing Playing Field

FAST-GROWING MARKETS

 10-12%

PRESCRIPTION LENSES

SUNWEAR

ONLINE

€12.7bn

€8.5bn

€5.8bn

 3-4%

 6-7%

 14%

€27.0bn  6-7% Essilor ambition by 2018 >6% like-for-like growth

Superior Products & Innovative Services Operational Efficiency Size and growth of industry segments by 2018 Prescription sun lenses are included into prescription lenses Fast-Growing Markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America

2015 Results

3. A Broader, Stronger Company 44

Five Key Competitive Advantages to Extend our Leadership Unique partnership & acquisition formula

Innovation

Consumer & customer proximity

Growing brand portfolio

Supply chain & servicing capabilities 2015 Results

3. A Broader, Stronger Company 45

Superior Innovation Drive

PRESBYOPIA & SENIORS

MYOPIA & YOUNG ADULTS

WELL BEING & HEALTH

SUN, POLARIZATION & PHOTOCHROMICS

PERSONALIZATION & SEGMENTATION

ONLINE & 2.5 NVG

2015 Results

3. A Broader, Stronger Company 46

A Large and Growing Brand Portfolio PRESCRIPTION LENSES

SUNWEAR

2015 Results

ONLINE

3. A Broader, Stronger Company 47

Extended Supply Chain and Servicing Capabilities ESSILOR SUPPLY CHAIN Contact Lenses

Consumers’ prescriptions and needs

16 Distribution Centers

350,000+ Eye Care Professionals

32 Plants

Frames

490 Prescription Laboratories

E-tailers

1bn people wear our products daily around the world

Products sourced from other manufacturers 2015 Results

3. A Broader, Stronger Company 48

The Intangible Value of Consumer & Customer Proximity at Global Level

Online solutions

Field servicing representatives

Duty free outlets Sales & customer service representatives

2015 Results

3. A Broader, Stronger Company 49

A Unique Recipe for Success: Partnerships and Acquisitions

50%+

~80% 2015 Results

100% 3. A Broader, Stronger Company 50

These Competitive Advantages Give Essilor a Unique Position in the Value Chain Innovation

Loyalty & adherence

Consumer brands

Internet

Proximity with consumers

2.5 NVG

Supply Chain

Proximity with ECPs

Sourcing

Acquisitions

Critical Mass Dissemination of innovation

Partnerships

2015 Results

3. A Broader, Stronger Company 51

Five Key Growth Levers to Continue Value Creation 1

Growth potential in value terms as big in developed markets as in fast-growing ones

2

A leading position in North America, the world's largest optical market in value terms

3

Maximizing the impact of two growth drivers: innovation and consumer marketing

4

Leveraging interconnections between all businesses

5

Acquisitions, new business models and organic growth

2015 Results

3. A Broader, Stronger Company 52

1

Growth Potential in Value Terms as Big in Developed Markets as in Fast-Growing Markets

DEVELOPED MARKETS     FAST-GROWING MARKETS

   

1 billion people A ~€60bn market(1) 2-3% growth USA: biggest market(1) in value: ~$30bn

6 billion people A ~€25bn market(1) >10% growth China: second biggest market(1) in value: ~€8bn

M&A opportunities in both geographies Fast-Growing Markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America Source: Essilor – 2015 estimates, Worldbank (1) Sell-out value for contact lenses, spectacle lenses, readers, sunglasses and frames

2015 Results

3. A Broader, Stronger Company 53

2

A Leading Position in North America, the World's Largest Optical Market in Value Terms Underdeveloped market

Faster Growth

All business segments PRESCRIPTION LENSES

Progressive Lenses(1)

~11%(2)

49% 30%

39%

>15% USA

France

SUNWEAR

New Zealand

Antireflective Lenses(1)

>30%

95% 68% 39%

USA

ONLINE

Spain

China

(1)Penetration of total lens industry in volumes in 2015 (2)Volume growth Source: Essilor estimates

2015 Results

3. A Broader, Stronger Company 54

3

Maximizing the Impact of Two Growth Drivers, Each Representing €200m in Annual Expenditure Innovation

Consumer marketing

2015 Results

3. A Broader, Stronger Company 55

4 Leveraging Interconnections between all Businesses

2015 Results

3. A Broader, Stronger Company 56

5

Acquisitions, New Business Models and Like-for-like Growth All business segments

New models

Prescription Lenses + Sunwear

+ Online

+ Fast-Growing Markets

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

2015 Results

3. A Broader, Stronger Company 57

A Powerful Corporate Culture A global mindset  Paris / Singapore / Dallas  400 entrepreneurial equity partners

61,000 employees  ~25% of the Group’s

employees are shareholders  Group’s leading shareholder

 Poor Vision is the World’s Biggest

Disability

Strong alignment with shareholders

A powerful commitment to a unique mission

2015 Results

3. A Broader, Stronger Company 58

GREAT VISION ALL THROUGH YOUR LIFE

2015 Results

3. A Broader, Stronger Company 59

4. Creating New Wearers to Fight Poor Vision 

Jayanth Bhuvaraghan – Chief Corporate Mission Officer

2015 Results

60

Poor Vision, the World’s Largest Disability: Awareness and Access are Main Barriers Number of people with uncorrected vision needs

95% of people with uncorrected vision needs live in emerging markets

(in billion of people)

3.2

2.70

If we don’t act

2.60

2.5

With Essilor initiatives

1.7

0.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

2050

2015 Results

Lack of Awareness & Access  “I didn’t know I had poor vision”  “I didn’t know readers could help”  “I have to travel 30km to the next township to get my glasses” 4. Creating New Wearers to Fight Poor Vision 61

All Studies Confirm the Major Impact of Vision Correction on Quality of Life Increased productivity and wellbeing for new spectacle wearers

Higher renewal frequency

3 years

First-time wearers will pay 40% more when renewing their glasses How much would you be ready to pay for your next pair of glasses? Index price stated: 100 = first glasses

+40% 1.8 years

140

100

New wearers from 2.5bn uncorrected population

Mainstream wearers First-time wearers

Renewers

Source: Dalberg Eye Mitra Impact Study – August 2015, India Low-Income Survey, Essilor

2015 Results

4. Creating New Wearers to Fight Poor Vision 62

Corporate Mission: A Global Team Dedicated to Expanding the Market for Sustainable Long-Term Growth Improving Lives by Improving Sight, for everyone, everywhere: our main contribution to Sustainable Development

BoP Innovation Lab

2015 Results

4. Creating New Wearers to Fight Poor Vision 63

2.5 New Vision Generation: Creating Innovative Solutions In Emerging Markets to Reverse the Trend of Poor Vision

ON-THE-SPOT SOLUTIONS Business model innovation Adaptive

Scalable

Product/Service Innovation

Impactful

Training

Product range

Merchandising

BoP Innovation Lab 2015 Results

4. Creating New Wearers to Fight Poor Vision 64

Improving Access: Building an Ecosystem of Fixed & Mobile Touch Points

Training Manpower

Developing Infrastructure

Vision Entrepreneur Programs

Partnerships with public and private hospitals, governments & NGOs

Mainstream opticians

2015 Results

4. Creating New Wearers to Fight Poor Vision 65

Crafting an Army of Vision Entrepreneurs 1. Vision Ambassadors

2. Eye Mitra Opticians

Mainstream opticians Business Skills

All types of RX

100 %

 Target: presbyopic segment  1-day training course  Part-time work

Near Vision for Presbyopes and Sunglasses

40 %

 Readers and sunglasses

2015 Results

4. Creating New Wearers to Fight Poor Vision 66

Example of Vision Ambassadors: China 1. Vision Ambassadors

2. Eye Mitra Opticians

Geographic complementarity with other Group businesses

300

# Vision Ambassadors in 2015

 250m presbyopes, majority in rural areas  Set to increase to over 300m by 2020

 Partnerships with private hospitals in 3 provinces (population: 152m)Headquarters Region Offices

 Leveraging ‘village doctor’ network

HQ

Lenses & Optical Instruments facilities Sunglasses & Readers facilities

Online facilities 2.5 NVG

2015 Results

4. Creating New Wearers to Fight Poor Vision 67

Example of Vision Ambassadors: Brazil 1. Vision Ambassadors

30

2. Eye Mitra Opticians

# Vision Ambassadors in Pilot (launched Dec 2015)

201 million inhabitants

~ 110 million people (~55%) require vision correction

30/40 million are not corrected

 87% urban population

 ¾ of uncorrected are urban poor  Lack of access to ophthalmologists and to affordable glasses ~73% live in the Northeast and Southeast of the country

 Click and Mortar model  Leveraging Group online platform Glasses4you

2015 Results

4. Creating New Wearers to Fight Poor Vision 68

Crafting an Army of Vision Entrepreneurs 1. Vision Ambassadors

2. Eye Mitra Opticians

 Full time career  12 months training

Mainstream opticians

 2 months in classroom

Business Skills

 10 months in-store

 Full range of prescription eyewear + sunglasses  Supported by rural marketing campaigns All types of RX

100 %

Near Vision for Presbyopes and Sunglasses

40 %

2015 Results

4. Creating New Wearers to Fight Poor Vision 69

India: Successfully Leveraging Both Models 1. Vision Ambassadors

1,088

2. Eye Mitra Opticians

# Eye Mitra Opticians in 2015

Working Eye Mitra in 13 states

 180,000 customers served in 2015

 75% of customers buy their first pair of glasses  64% increase in income for previously employed EMO

Eye Mitra Opticians

155

# Vision Ambassadors in 2015

2015 Results

Vision Ambassadors

4. Creating New Wearers to Fight Poor Vision 70

Strong Business Models to Replicate and Scale Up Mainstream Mainstream Optician Optician

2015

2020

Mainstream Optician Mainstream (L1) Business Business Skills Skills (L1) opticians Business Skills (L1) Business Skills

1,000

12,000

500

32,000

All types of RX 100 % 100% (M2) ALL ALL types types of ofRx Rx 100% (M2) 100% (M2) ALL types of Rx

Near Vision for Presbyopes and Sunglasses

40 %

(M0) VISION NEAR VISION for Presbyopes & Sunglasses) VISION for Presbyopes Presbyopes Sunglasses) (M0) NEAR for &&Sunglasses)

40% 40% 40%

2015 Results

4. Creating New Wearers to Fight Poor Vision 71

Value Creation: Creating Tomorrow’s Customers

2030: 500m New Wearers

 



Expanding the market

Creating a competitive edge

Contributing to Essilor’s sustainable long-term growth

2015 Results

4. Creating New Wearers to Fight Poor Vision 72

4. Creating New Wearers to Fight Poor Vision

5. Outlook 

Hubert Sagnières – Chairman and Chief Executive Officer

2015 Results

74

Outlook for 2016  Revenue Growth:  Like-for-like



Around 5%

 Excluding currency effect



>8%



≥18.8%(2)

 Contribution from operations as a percentage of revenue

(1)

(1) Contribution from operations = Revenue less cost of sales and operating expenses (research and development costs, selling and distribution costs, other operating expenses). (2) Excluding any additional strategic acquisitions.

2015 Results

5. Outlook 75

Questions & Answers

2015 Results

76

2015 Results  February 19, 2016