JP Morgan Healthcare Conference

Transcription

1 JP Morgan Healthcare Conference January 12, 2016

2 A Unique and Powerful Mission

3 Our Mission Improving life by improving sight 3

4 Building the Next Vision Generation Through Inclusive Business and Strategic Giving Awareness Empowerment Outreach BoP Innovation Lab New Consumer Activation 4

5 Accelerating our Social Impact Through Scalable Initiatives FRANCE Partnerships with Secours Populaire & SamuSocial CHINA Last mile innovation thru partnerships with NGOs & local hospitals. Established Essilor Vision Foundation N. AMERICA Expansion of Essilor Vision Foundation AFRICA New partnerships with NGOs to serve the uncorrected in 22 countries + publicprivate partnerships INDIA Accelerating existing initiatives + Skill building + Established Essilor Vision Foundation. ASEAN Established Essilor Vision Foundation COLOMBIA Partnership with Volver Foundation MEXICO Inclusive business models in partnership w NGOs BRAZIL Serving Urban Poor through Instituto Ver & Viver 5

6 Improving and Protecting the Vision of Every Inhabitant of the Planet 7.2 billion people worldwide 4.5 billion (63%) require vision correction 100% should wear sunglasses to protect their eyes against UV rays billion billion billion billion Corrected Uncorrected Equipped Unequipped Source: Essilor 2015 estimates 6

7 in a Vast Market Driven by Demographics, Ageing, Urbanization and Lifestyle 2015 Volume CAGR 2020 Demography (in billions of people) Vision Industry (in billions of people) Visual Impairments (in billions of people) Worldwide Population % 7.6 Urban Population % 5.0 Correction Needs Correction Wearers Myopia Presbyopia 4.5 c.2.1% c.3.0% c.3.3% c.2.5% 2.4 Visual Health (in millions of people) Cataracts AMD* 260m 120m c.3.6% c.2.6% * Age-related Macular Degeneration Source: Essilor estimates, Worldbank, United Nation, CIA, World Population Prospects, Epidemiological and Marketing studies 310m c.135m 7

8 Strategic Priorities

9 Fulfilling our Mission on a Bigger Playing Field PRESCRIPTION LENSES SUNGLASSES ONLINE FAST- GROWING MARKETS 10-12% 12.7bn 3-4% 8.5bn 6-7% 5.8bn 14% 27.0bn 6-7% Superior Products & Innovative Services Operational Efficiency 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. 9

10 Leveraging Key Competitive Advantages Innovation Acquisitions & Partnerships Supply chain & Sourcing Breakdown of R&D expenses in the optical industry A highly fragmented industry A mass customization market Other Industry Players c.25% c.75% Essilor Essilor Pricing power Transfer innovations to the sunwear categories Stretch Essilor s lead Innovation dissemination New countries, new business segments Synergies Fast and reliable service End-to-end solutions for key accounts Efficiency programs 10

11 An Effective Action Plan to Deliver Value Across Every Business PRESCRIPTION LENSES SUNGLASSES ONLINE FAST - GROWING MARKETS New Products New Countries Partnerships Innovation Accelerate Consumer marketing push Performance & Mid-tier Performance sunwear Prescription solutions Grow fast in a profitable channel Coastal turnaround Consumer marketing Leveraging Transitions Consumer marketing Online solutions for retailers Acquisitions and partnerships delivering growth and synergies 11

12 Strategic Drivers in Developed Markets Prescription Lenses Sunglasses Online Fast-Growing Markets Innovation Consumer marketing Key accounts 12

13 Eyezen: Roll-out in All Distribution Networks Prescription Lenses Sunglasses Online Fast-Growing Markets Traditional ECPs Online distribution Over the counter Eyezenusa.com Independent ECPs & Chains Targeting both Ametropes and Emmetropes 13

14 Capturing Growth in Every Sunwear Segment Prescription Lenses Sunglasses Online Fast-Growing Markets Retail sell-out price Luxury fashion c. 12m units Performance 25-30m units Entry/mid-tier >500m units INFORMAL TRADE Functional use 14

15 2015: Acceleration in Sunwear Prescription Lenses Sunglasses Online Fast-Growing Markets 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 15

16 Continue to Develop Fast-Growing Online Segment Prescription Lenses Sunglasses Online Fast-Growing Markets 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 16

17 Building Global Presence in a Highly Fragmented Market Prescription Lenses Sunglasses Online Fast-Growing Markets Headquarters Leveraging Group s Product Portfolio and Supply chain 17

18 Significant Potential in Fast-Growing Markets Prescription Lenses Sunglasses Online Fast-Growing Markets Mid-tier Consumer marketing Sunwear Acquisitions Number of local lens players Latin America Asia/Pacific Africa Fast-Growing Markets include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia and Latin America. 18

19 9-month 2015 Performance & Outlook

20 9-month 2015 Revenue Growth Well Balanced Between Like-for-like Growth and Acquisitions millions % % +11.4% 5, % +4.1% +19.9% 4, % +8.5% 9m 2014 Revenue Like-for-like growth Bolt-on acquisitions (1) Strategic acquisitions (2) Currency effect 9m 2015 Revenue (1) Local acquisitions or partnerships. (2) Transitions Optical and Coastal.com. 20

21 Acceleration Driven by All Geographies Like-for-like revenue growth Q m 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% + Robust growth in North America and Europe + Product mix supported by advertising campaigns + Continued momentum in fastgrowing markets + Sharp improvement in Sun & Readers 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 21

22 Acquisitions Also Well Balanced Between Developed and Fast-Growing Markets Europe 4 Fabris Lane Optic Club Jai Kudo Polska 19 Acquisitions in 2015 representing combined annual revenue of c. 214m North America 2 Optimax PERC/IVA ECP Merve (1) Vision Source NOME Prime Lenses GKB Vision Grupo Vision Rozin Latin America 7 Asia/Pacific/ Middle East/Africa 6 Segment Rx Prime Optical Eyres Optics E-lens Eotica (1) The acquisition of Merve s ophthalmic lens business remains subject to standard regulatory approvals. 22

23 2015 Guidance Revenue Growth: Like-for-like > 4.5% Excluding currency effect 8% to 11% (2) Contribution from operations (1) as a percentage of revenue 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. 23

24 Long Term Total Shareholder Return: +18.6% CAGR 120,00 Essilor Share Price +16.2% CAGR 100,00 80,00 60,00 40,00 20,00 CAC % CAGR 0,00 Essilor Share Price from October 28, 1975 ( ) until December 31, 2015 ( ) CAC 40 rebased from December 31, 1987 (1,000 points) until December 31, 2015 (4, points) 24

25 A Unique Combination Driving for Success A powerful mission A clear strategy Poor vision is the biggest handicap in the world Strong teams Innovation & partnerships Entrepreneurial & global Employees aligned with shareholders through employee shareholder program and Valoptec governance 25