Laurent Vacherot, Chief Financial Officer

Laurent Vacherot, Chief Financial Officer

Annual Shareholders’ Meeting
May 11, 2010
Laurent Vacherot
Essilor in 2009
Outlook for 2010
Financial position and the Stock Market
2
Essilor in 2009
Outlook for 2010
Financial position and the Stock Market
3
Essilor in 2009
A remarkable year
Revenue up 6.3%
27 acquisitions throughout the world
Operating profit improved thanks to
increased efficiency
Free cash flow up 25%
4
2009 Revenue up 6.3%
40
In € millions
70
82
2
2.6%
0.1%
2.3%
1.3%
2.7 %
3,268
+6.3%
3 074
2008
Organic growth
Organic acquisitions
Satisloh
Currency
impact
2009
5
2009 overall growth* by Region – Excluding currency impact
NORTH AMERICA
+3.5%
EUROPE
‐0.5%
EASTERN
EUROPE
30.8%
AFRICA
MIDDLE‐EAST
+ 31.6%
INDIA
+60.3%
LATIN AM.
+8.3%
CHINA
+11.9%
JAPAN
‐7.7%
ASEAN
+21.9%
OCEANIA
+6.9%
6
*organic growth + organic acquisitions without the strategic acquisitions
Income Statement
Restated 2009 EPS up 10% Profitability improvement
In € millions
Revenues
Contribution from
operations**
% of revenue
Operating profit
Profit attributable
to equity holders
% of revenue
Earnings per share (in €)
Dec 2008 Dec 2009
Change
Dec 2009
restated*
Change
3,074
3,268
6.3%
3,268
6.3%
551
594
7.9%
594
7.9%
17.9%
18.2%
514
555
7.9%
555
7.9%
382
394
3.1%
420
9.9%
12.4%
12.1%
1.85
1.91
18.2%
12.9%
3.2%
2.03
* 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.
10.0%
7
Capital expenditure
Decline in Capital Expenditure = Asset optimization
224
192
183
174
116
7.2%
7.1%
7.7%
5.9%
3.5%
2005
2006
2007
2008
2009
In € millions ‐ % of revenue
8
Free cash flow up 25%
125
71
Operating cash flow
(excl WCR)
139
Dividend
161
Net financial investments
76
Capital increase
Other
In € millions
 WCR
586
+390
Bond conversion and other
Net capital expenditure
153
206
Share purchases
 Net debt
37
2
9
Financial position at December 31, 2009
A healthy situation
Net Debt
2,738
Equity
2,168
1,676
‐54
2005
In € millions
2,366
1,892
112
‐210
‐260
2006
2007
2008
‐93
2009
10
Proposed 2009 dividend up 6.1%
Dividend improving again this year
%
Payout ratio (%)
Total Payout (€M)
Net dividend per share (€)
129
0.70
113
96
136
146
0.66
0.62
0.55
0.47
35%
36%
37%
34%
33%
2005
2006
2007
2008
2009
11
Essilor in 2009
Outlook for 2010
Financial position and the Stock Market
12
Q1 2010
Gradual improvement of the activity
Continuous search for efficiency
2 strategic acquisition deals
FGX
Signet
Organic acquisitions
13
1st quarter 2010 Revenue
A gradual improvement everywhere
2
18.3
In € millions
24.4
20.8
+ 2.5 %
+ 2.9 %
+ 2.2 %
+ 0.2 %
+ 5.4 %
905.8
840.3
Q1 2009
+ 7.8 %
Organic growth
Organic acquisitions
FGX
Currency impact
Q1 2010
14
Overall growth* by Region – Q1 2010 – Excluding currency effect
NORTH AMERICA
+4.7%
EUROPE
+3.8%
CHINA
+10.2%
EASTERN
EUROPE
+22.0%
AFRICA
MIDDLE‐EAST
+ 32.9%
JAPAN
‐5.0%
INDIA
+20.9%
LATIN AM.
+21,2%
ASEAN
+22,4%
OCEANIA
+19.3%
15
*organic growth + organic acquisitions without the strategic acquisitions
Signet Armorlite
US$115m revenue in
2009 – 900 employees
USA, UK, Spain,
Germany
Kodak: a consumer
quality mid-range brand
Synergies
16
FGX
Leader on the « Readers » Market
Well-known brands on
US market: Foster
Grant, Magnivision,
SolarShield
Revenue: split by products
Sourcing: 100% in
China
Revenue: split by distribution channels
≈ $260m revenue in
2008
17
Essilor in 2009
Outlook for 2010
Financial position and the Stock Market
18
Capital: shares outstanding
Shares outstanding, excluding treasury shares on Dec. 31, 2008
•
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
•
207,013,917
Share buy-backs
Shares outstanding, excluding treasury shares on Dec. 31, 2009
Shares outstanding, excluding treasury shares on April 30, 2010
4,548,690
-2,179,698
210,879,319
208,201,263
19
Ownership structure at December 31, 2009
Employees 7.8%
Employees 13.8%
Treasury shares 2.1%
Public 90.1%
Shares outstanding:
215,509,972
Public 86.2%
Voting rights:
229,344,448
20
Share Performance – over past 15 years
Base comparaison : clotûre 01/01/1996
Essilor (01/01/1996) : 7,13 EUR
CAC (01/01/1996) : 1781 pts
Essilor vs. CAC 40
depuis 1996
Données mises à jour au 10/05/2010 à 9h50
50
45.2
Essilor
+ 534.1%
40
30
20
13.8
+ 94.5%
10
CAC 40*
7.13
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
* Indice basé sur le cours Essilor au 01/01/96
21
Share performance – over past 16 months
Base comparaison : clotûre 31/12/2008
Essilor (29/12/2008) : 33,57 EUR
CAC (29/12/2008) : 3297.97 pts
Essilor vs. CAC 40 ‐ 2009/2010
Données mises à jour au 10/05/2010 à 10h13
50
Essilor
45.3
45
+ 34.9%
40
37.8
+ 12.6%
35
CAC 40*
33.57
30
25
janv
févr
mars
avr
* Indice basé sur le cours Essilor au 31/12/08
mai
juin
juil
2009
août
sept
oct
nov
déc
janv
févr
mars
2010
avr
mai
22
In brief
2009: a good year
Good start for 2010
Confidence and vigilance
23
24