Annual Shareholders’ Meeting

May 11, 2010Laurent Vacherot

2

Essilor in 2009

Outlook for 2010

Financial position and the Stock Market

3

Essilor in 2009

Outlook for 2010

Financial position and the Stock Market

4

Essilor in 2009

Revenue up 6.3%

27 acquisitions throughout the world

Operating profit improved thanks to increased efficiency

Free cash flow up 25%

A remarkable year

5

3 074

82

3,268

2009

0.1% 2.6% 1.3%

2008 Organic growth

Organic 

acquisitions

Currency

impact

+6.3%

Satisloh

70

2.3%

In €

millions

2.7 %

40

2

2009 Revenue up 6.3%

6

EUROPE‐0.5%

LATIN AM.

+8.3%

NORTH AMERICA+3.5%

INDIA+60.3%

CHINA+11.9% JAPAN

‐7.7%

OCEANIA+6.9%

EASTERNEUROPE30.8%

*organic growth + organic acquisitions without the strategic acquisitions

AFRICAMIDDLE‐EAST

+

31.6%

ASEAN+21.9%

2009 overall growth* by Region – Excluding currency impact

7

Dec 2008 Dec 2009 ChangeDec 2009 restated* ChangeIn € millions

Revenues 3,074 3,268 6.3% 3,268 6.3%

Contribution from operations** 551 594 7.9% 594 7.9%

% of revenue 17.9% 18.2% 18.2%

Operating profit 514 555 7.9% 555 7.9%

Profit attributableto equity holders

382 394 3.1% 420 9.9%

% of revenue 12.4% 12.1% 12.9%

Earnings per share (in €) 1.85 1.91 3.2% 2.03 10.0%

* Restated for provision iro

fiscal risks of €26.1m** Operating profit before compensation costs of share‐based payments, restructuring costs, other 

income and expense and goodwill impairment.

Income Statement

Restated 2009 EPS up 10% Profitability improvement

8In €

millions ‐

% of revenue

174192

224

183

116

7.2% 3.5%5.9%7.7%7.1%

2005 2006 2007 2008 2009

Capital expenditure

Decline in Capital Expenditure = Asset optimization

9

Operating cash flow(excl

WCR)

+390

Net capital expenditure

WCR

Dividend

Net debt

Net financial investments

Share purchases

586

206

76

161

139

71

125

Free cash flow up 25%

153372

Capital increase

Bond conversion and 

other

Other

In €

millions

10

Financial position at December 31, 2009

‐54‐210

112‐93‐260

2,7382,366

2,1681,892

1,676

2005 2006 2007 2008 2009

Net Debt

Equity

In €

millions

A healthy situation

11

96

113

129136

146

0.700.66

0.62

0.55

0.47

2005 2006 2007 2008 2009

Total Payout (€M)Net dividend per share (€)

33%34%

35%36%

37%

% Payout ratio (%)

Proposed 2009 dividend up 6.1%

Dividend improving again this year

12

Essilor in 2009

Outlook for 2010

Financial position and the Stock Market

13

Gradual improvement of the activity

Continuous search for efficiency

2 strategic acquisition dealsFGXSignet

Organic acquisitions

Q1 2010

14

840.3

20.8

24.4

905.8

Q1 2010

+ 2.5 % + 2.9 % + 0.2 %

Q1 2009

+ 7.8 %

18.3

+ 2.2 %

In €

millions

+ 5.4 %

Organic growth

Organic 

acquisitions

Currency 

impact

FGX

2

1st quarter 2010 Revenue

A gradual improvement everywhere

15

EUROPE+3.8%

LATIN AM.

+21,2%

NORTH AMERICA+4.7%

INDIA+20.9%

CHINA+10.2%

*organic growth + organic acquisitions without the strategic acquisitions

OCEANIA+19.3%

EASTERNEUROPE+22.0%

JAPAN‐5.0%AFRICA

MIDDLE‐EAST+

32.9%

ASEAN+22,4%

Overall growth* by Region – Q1 2010 – Excluding currency effect

16

Signet Armorlite

US$115m revenue in 2009 – 900 employees

USA, UK, Spain, Germany

Kodak: a consumer quality mid-range brand

Synergies

17

Revenue: split by products

Revenue: split by distribution channels

Well-known brands on US market: Foster Grant, Magnivision, SolarShield

Sourcing: 100% in China

≈

$260m revenue in 2008

FGX

Leader on the « Readers » Market

18

Essilor in 2009

Outlook for 2010

Financial position and the Stock Market

19

Shares outstanding, excluding treasury shares on Dec. 31, 2008 207,013,917

• Issuance of new shares 6,045,100

On investment in the ESOP 662,646

Exercise of stock options in 2009 833,764

Conversion of OCEANE bond 4,548,690

• Share buy-backs -2,179,698

Shares outstanding, excluding treasury shares on Dec. 31, 2009 210,879,319

Capital: shares outstanding

Shares outstanding, excluding treasury shares on April 30, 2010 208,201,263

20

Shares outstanding: Voting rights:215,509,972 229,344,448

Public 90.1% Public 86.2%

Ownership structure at December 31, 2009

Employees 7.8% Employees 13.8%Treasury shares 2.1%

21

Essilor vs. CAC 40depuis 1996

0

10

20

30

40

50

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

+ 94.5%

+ 534.1%45.2

13.8

* Indice basé sur le cours Essilor au 01/01/96

Base comparaison : clotûre 01/01/1996Essilor (01/01/1996) : 7,13 EURCAC (01/01/1996) : 1781 pts

Données mises à jour au 10/05/2010 à 9h50

7.13CAC 40*

Essilor

Share Performance – over past 15 years

22

Essilor vs. CAC 40 ‐ 2009/2010

25

30

35

40

45

50

janv févr mars avr mai juin juil août sept oct nov déc janv févr mars avr mai

+ 34.9%45.3

* Indice basé sur le cours Essilor au 31/12/08

Base comparaison : clotûre 31/12/2008Essilor (29/12/2008) : 33,57 EURCAC (29/12/2008) : 3297.97 pts

Données mises à jour au 10/05/2010 à 10h13

+ 12.6%37.8

33.57 CAC 40*

Essilor

2009 2010

Share performance – over past 16 months

23

In brief

2009: a good year

Good start for 2010

Confidence and vigilance

24

1

Annual Shareholders’ Meeting Strategy & Outlook

May 11th 2010Hubert Sagnières

2

Strategy & Outlook

The optical market in 2010

A still significantly under-penetrated market

A product offer under used

Emergence of a profitable mid-range segment

A highly fragmented industry

3

1.6billion

2.4 billion

A significantly underA significantly under--penetrated marketpenetrated market

Strategy & Outlook

Four billion people in the world require vision correction… but only 1.6 billion correct their vision

4

Strategy & Outlook

0

500000

1000000

2009

Anti Refle

ctive

Easy C

lean

Progres

sive

UV400 block

Photoch

romic

Anti Static

Polarized

Computer &

Anti-F

atigue

A A productproduct offeroffer underunder usedused

Lenses that add sensitive protections and improve visual comfort are all

under used worldwide

Lenses sold

1 Billion

500 Million

5Emergence of a profitable midEmergence of a profitable mid--range segmentrange segment

150

150 / 200

200 million consumers pa

Strategy & Outlook

Increased spending power generates a profitable and fast growing mid-range segment, with discerning consumers

6

Lens manufacturers

Distributors & laboratories

Optical distribution

Readersmanufacturers

Distributionof readers

Retail networks

1 billion Rx lenses 200 Million readers

A highly fragmented industryA highly fragmented industry

Strategy & Outlook

A global market dominated by local operators

Essilor 150 to 200small operators

200 to 300manufacturers

Essilor 1500 to 2000local operators

F G X

7

Trading-up through

innovation

Conquering the mid-

range segment

Expanding the market

Acquisitions

Strategy & Outlook

Four growth opportunities

8

150

150 / 200

200

Strategy & Outlook

Consolidate our positions in the high-end segment through innovation

million consumers pa

9

Varilux

Crizal

TransitionsAirwear

Xperio

150million consumers pa

Strategy & Outlook

Consolidate our positions in the high-end segment through innovation

…

10

Strategy & Outlook

United States

11

Strategy & Outlook

Italy

12

150

150 / 200

200

Strategy & Outlook

Conquer the mid-range segment via new products, new business models and by accelerating acquisitions

million consumers pa

13

Segmented offers

Competitive and differentiated offers

Bolt-on acquisitions

Multi-networks

Strategy & Outlook

Conquer the mid-range segment via new products, new business models and by accelerating acquisitions

million consumers pa

150

150 / 200

14

Strategy & Outlook

15

Strategy & Outlook

16

Strategy & Outlook

Convince consumers to use visual solution of better quality and adapted to their needs through training and information actions

Photochromics

Clear lenses

Progressives

Bifocals

Xperio polarized

Tinted sunwear

Crizal Anti-reflective

Regular lenses

17

Strategy & Outlook

United States

18

Strategy & Outlook

France

19

Strategy & Outlook

Stimulate demand to increase the size of the market through multiple actions, communication, education, and awareness

500million

consumers pa

20

Strategy & Outlook

Stimulate demand to increase the size of the market through multiple actions, communication, education, and awareness

Trade-in:• Emerging countries• Developed markets

Renewal

500 550600

million consumers pa

Multi-pairs

21

Thailand

Strategy & Outlook

22

Strategy & Outlook

China

23

Strategy & Outlook

Operational efficiency

Rigorous management to underpin growth

Trading-up through

innovation

Conquering the mid-

range segment

Expanding the market

Acquisitions

24

Strategy & Outlook

Pursue productivity gains

Strategic reorientation of investments

Generate resources to fund growth

Develop competitive and profitable products in new segments and the mid-range

Operational efficiency as a means to invest and grow

25

Strategy & Outlook

Assure a strong financial position

Maintain a high level of profitability

Increase cash flow

26

Strategy & Outlook

2010: A year of acceleration

An important year for new product launches in the high-end and mid-range segments

A year of geographic expansion, notably in China, India and Latin America

A year of accelerating bolt-on acquisitions

A year of integration for larger acquisitions (FGX, Signet Armorlite)

A year of further productivity gains

27