Post on 16-Sep-2018
4 pilars of our strategy
Operational and management efficiency
Products and
Services
INNOVATE
Corporate and social responsibility
Top & Mid-
range markets
DEVELOP
Acquisitions &
Partnerships
GROW
Demand
for Vision
Improvement
STIMULATE
32012 Annual General Meeting
2008-2011: Building Momentum for Sustainable Growth
4
Consolidate leadership in the high-end
through innovation
Strengthen positions
in mid-range markets
42012 Annual General Meeting
2008-2011: Building Momentum for Sustainable Growth
5
Expand in two new
growth segments
Capture leading positions
in key new markets
52012 Annual General Meeting
2008-2011: Building Momentum for Sustainable Growth
Volume market share
31%
26%
6
Gaining market shareNew management organization
to support growth
62012 Annual General Meeting
Revenue
Contribution from operations
Earnings per share
Cash flow*
+10.9% CAGR
+10.7% CAGR
+9.7% CAGR
+9.0% CAGR
2008-2011: Building Momentum for Sustainable Growth
* Cash flow = Operating cash flow excluding change in WCR
7
72012 Annual General Meeting
2008-2012: A new size for the Group
8
Employees
Market Capitalisation
34,320 52,000
2008 2012
€7.1bn €14bn
82012 Annual General Meeting
Global Optical Market:
Long-term Structural Growth
A large and growing market,
still significantly underpenetrated
Fast growing markets driving volume growth
Value growth boosted by demand for better vision
A highly fragmented industry led by local operators
Poor vision: a global economic concern
92012 Annual General Meeting
A Large and Growing Market,
Still Significantly Underpenetrated
7 billion people in the world
4.2 billion people (60%) require vision correction
Presbyopes growth rate: 2-3%
2.5billion
people
1.7billion
people
Myopic growth rate: 4-6%
Not correctedCorrected
102012 Annual General Meeting
Fast Growing Markets Driving Volume Growth
+6-8% +1-2%
35
12580
20
120
190
Fast
Growing
Markets
Developed
Markets
570 millionconsumers per annum
Global market growing at 3-4%
112012 Annual General Meeting
Value Growth boosted by Demandfor Better Vision in Every Segment
Category growth Category segmentation
Crizal Forte
Crizal Easy
TRIO
Crizal Alizé
Value Creation in the coating segment
Vis
ion
Imp
rove
me
nt
Geographic mix
Pri
ce
Crizal ForteUV
12
Non AR
lens
AR lens
Argentina
Gro
wth
Po
ten
tia
l
USA Middle
East
Germany Japan
122012 Annual General Meeting
A Highly Fragmented Industry
Sources : Estimations Essilor, InfoMarché 2010, VisionWatch 2010
Essilor
Essilor G
X
Lens
Manufacturers
Wholesalers
& Laboratories
Optical
Retail
Readers
Manufacturers
Readers
Wholesalers
Retail
Networks
150 to 200Small operators
1,500 to 2,000Local operators
1.1 Billion Rx lenses
220 Million Readers (pairs)
132012 Annual General Meeting
Poor Vision: a Global Economic Concern
Workplace Elderly
Sources: World Health Organization, BCG
Education
810 million: Children with poor vision encountering problem at school
1.1 billion: Workers with poor vision having productivity or safety issues
3.2 million: People blinded by UV exposure every year
» $270bn: Global economic productivity loss due to poor vision
142012 Annual General Meeting
A unique entrepreneurial model
48,700 employees
around the worldSuccessful record of
integrating new
partnerships
acquisitions
Broad-based employee
shareholding
program
Invest in talented
people
Internationalization and
diversity
to address an
expanding, complex
environment
A corporate culture deployed through the “Essilor Principles”
152012 Annual General Meeting
Essilor’s Governance
Board of Directors
Four BoardCommittees
Shareholders
EmployeeShareholding
ValoptecAssociation
ExecutiveCommittee
172012 Annual General Meeting
Members of the Board of Directors
Philippe ALFROID
Xavier FONTANET
Hubert SAGNIERES
Independant Directors
Benoît BAZIN
Antoine BERNARD DE SAINT
AFFRIQUE
Yves CHEVILLOTTE
Mireille FAUGERE
Bernard HOURS
Maurice MARCHAND-TONEL
Olivier PECOUX
Michel ROSE
Valoptec Association
Yves GILLET
Yi HE
Aïcha MOKDAHI
6 scheduled Board Meetings + 1 unscheduled Meeting in 2011
Attendance rate: 95%
182012 Annual General Meeting
Renewal of appointment to the Board
for 3 years for:
Mr. Benoît BAZIN
Born on December 29, 1968
19
From 2005 to March 2009: Chief Financial Officer, SAINT-GOBAIN
Since April 1 2009: CEO Building Distribution Sector
Since January 1 2010: Senior Vice President, COMPAGNIE DE SAINT-
GOBAIN
4th Resolution
192012 Annual General Meeting
Renewal of appointment to the Board
for 3 years for:
Mr. Antoine
BERNARD DE SAINT-AFFRIQUE
Born on December 26, 1964
20
From April 2005 to August 2009: Vice President at UNILEVER in charge
of Central and Eastern Europe and Russia
From August 2009 to September 2011: Executive Vice President at
UNILEVER, in charge «Skin Care and Skin Cleansing»
Since September 2011: President of Foods division, UNILEVER
5th Resolution
202012 Annual General Meeting
Renewal of appointment to the Board
for 3 years for:
Mr. Bernard HOURS
Born on May 5, 1956
Since January 2008: Chief Operating Officer, DANONE (S.A.)
Since 2010: Vice-Chairman of the Board of Directors, DANONE (S.A.)
21
6th Resolution
212012 Annual General Meeting
Renewal of appointment to the Board
for 3 years for:
Mr. Olivier PECOUX
Born on September 9, 1958
Since 2001: Managing Partner, ROTHSCHILD ET CIE BANQUE
Since March 2010: Chief Executive Officer of ROTHSCHILD investment
banking business and Chief Executive Officer and member of the
Management Board for PARIS-ORLEANS
22
7th Resolution
222012 Annual General Meeting
8th Resolution
Appointment of a new Director
for a period of 3 years:
Mrs Louise FRECHETTE
Born on July 16, 1946
Canadian
1985 – 1998: Served in Canadian Civil Service, holding the positions of
Ambassador to Argentina, Permanent Representative and Ambassador
to the UN, Associate Deputy-Minister of Finance and Deputy-Minister of
National Defense
1998 - 2006: Deputy Secretary General of the UN (New York)
Since May 2006: Distinguished fellow at the Centre for International
Governance Innovation and Chair of the Board of Directors of CARE
Canada
232012 Annual General Meeting
Essilor’s Governance
Board of Directors
Four BoardCommittees
Shareholders
EmployeeShareholding
ValoptecAssociation
ExecutiveCommittee
242012 Annual General Meeting
Audit Committee
Chairman of the Committee: Yves Chevillotte
Philippe Alfroid, Benoît Bazin, Antoine Bernard de Saint Affrique,
Aïcha Mokdahi
Attendance rate: 92%
8 specific subjects treated in 2011
252012 Annual General Meeting
Appointments Committee
Chairman of the Committee: Xavier Fontanet
Yves Chevillotte, Maurice Marchand-Tonel, Michel Rose
Chairman of the Board and Valoptec
Attendance rate: 100%
Reports on the functioning of the Board and prepares its evolution
262012 Annual General Meeting
Remunerations Committee
Chairman of the Committee: Michel Rose
Bernard Hours, Maurice Marchand-Tonel, Mireille Faugère
Attendance rate: 100%
Accompanies the evolutions of governance and assists those
concerned
Makes recommendations to the Board who in turn decides the
remuneration of company directors, in line with the AFEP-MEDEF
code
Reviews the allocation of performance shares for all employees
272012 Annual General Meeting
Executive Directors Compensation
1 Allowance to compensate for dual tax residence
Revenues and market cap on December 31 of each exercize. For 2012, market cap on April 19
2008 2009 2010 2011 2012Change
2012/2008
Chairman
& CEO
XF
Chairman
& CEO
XF
Chairman
XF
CEO
HS
Chairman
XF
CEO
HS
Chairman
& CEO
HS
Compound
annualized
growth in %
Fixed(K€)
700 721 500650
+ 2501 500650
+ 2501 800 +3.4%
Variable at target(K€)
700 721 - 650 - 650 800 +3.4%
% Achievement of
variable65 % 118 % - 134 % - 131 % ND
Revenue(in € billions)
3.1 3,3 3,9 4,2 ND+10.9%
(2011/2008)
Market Cap.(in € billions))
7.1 9,0 10,2 11.7 13.8 +18.2%
Stock options 120,000 80,000 - - - - ND
Performance Shares - - - 45,000 - 50,000 ND
282012 Annual General Meeting
Earning rules Holding rules
General rules- for employees
- for Executive Committee members
Share price increase
+ Group objectives achieved
In France : Shares available for sale after 6 to 8 years
Specific rules for Executive Directors- Performance
- Limitation of quantity received
+ Personal objectives achieved
+ Quantity limited to 7% of total shares granted
+ Value limited to yearly fixedand variable compensation
+ 1/3 of shares received to be held during the term of office, but limited to the value of 2 years of compensation
Performance Shares
292012 Annual General Meeting
Strategy Committee
Chairman of the Committee: Hubert Sagnières
All Board Members
Attendance rate: 94%
Meeting agenda prepared by a steering committee
8-10 subjects treated each year
302012 Annual General Meeting
Essilor’s Governance
Board of Directors
Four BoardCommittees
Shareholders
EmployeeShareholding
ValoptecAssociation
ExecutiveCommittee
312012 Annual General Meeting
Shareholding structure increasingly international
% of shareholders excluding employed shareholders/Valoptec
322012 Annual General Meeting
Essilor’s Governance
Board of Directors
Four BoardCommittees
Shareholders
EmployeeShareholding
ValoptecAssociation
ExecutiveCommittee
332012 Annual General Meeting
Employee shareholding and Valoptec:
Key to our entrepreneurial culture
United States
1,759
Latin America
250
Europe
2,230
Asia
1,106
13,057 total shareholders of which
6,300 members Valoptec Association
France
6,788
Africa- Australia-
Middle East
176
Canada
505
Mexico-
Puerto-Rico
243
342012 Annual General Meeting
Essilor’s Governance
Board of Directors
Four BoardCommittees
Shareholders
EmployeeShareholding
ValoptecAssociation
ExecutiveCommittee
352012 Annual General Meeting