2011 Annual General Meeting. Laurent Vacherot May 5, 2011

Transcription

1 2011 Annual General Meeting Laurent Vacherot May 5, 2011

2 > Highlights of 2010 > Outlook 2011 > Essilor share Annual General Meeting May 5,

3 2010: A Year of Acceleration Revenue of 3,892m, up 19.1% Operating profit up 18.9% to 705m, 18.1% margin Free cash flow of 480m, up 23% Annual General Meeting May 5,

4 Growth Strategy Pursued Product strategy Mid-range segment Geographic expansion Bolt-on acquisitions Strategic acquisitions 240 new products New local brands and multi-networks China, Latin America, India 155m in 2010 vs 117m in 2009 FGXI and Signet Armorlite Annual General Meeting May 5,

5 The Fastest Growth in 15 years: Up 13.4% at Constant Exchange Rates In millions % +1.6% +5.7% +3.0% +3.1% +6.1% 3,892 3, % at constant exchange rates +19.1% 2009 Organic growth Bolt-on acquisitions FGXI Signet Armorlite Currency effect 2010 Annual General Meeting May 5,

6 2010 overall growth* per Region/ Division (Excluding currency impact) NORTH AM. +3.5% LATIN AM % EUROPE +2.3% AFRICA MIDDLE EAST +24.6% EASTERN EUROPE +7.7% INDIA +19.4% EQUIPMENTS WW 38.1% INSTRUMENTS WW 9.8% CHINA +28.6% ASEAN +24.2% JAPAN 6.0% OCEANIA +15.2% *organic growth + bolt on acquisitions without the strategic acquisitions Annual General Meeting May 5,

7 Acquisitions: a good year Canada 2 United States 9 Europe 2 Africa Middle East 2 Asia 6 Latin America 4 Oceania 1 Equipment 1 Bolt-on acquisitions Strategic acquisitions Annual General Meeting May 5,

8 Net Profit Up 18.2% In millions 2009* 2010 % change Revenue 3,268 3, % Contribution from operations** % % of revenue 18.1% 18.1% Operating profit % Profit attributable to equity holders % % of revenue 11.9% 11.9% Earnings per share (in ) % * Adjusted for acquisition-related costs on non-closed transactions at December 31, 2009, which reduced net profit by 3.3m ** Operating profit before compensation costs of share-based payments, restructuring costs, other income and expense and goodwill impairment. Annual General Meeting May 5,

9 Exceptional Items within Operating Profit In millions % change Contribution from operations % Restructuring/reorganization (11.4) (37.9) BKA provision (3.9) (41.5) Sperian sale Strategic acquisition costs (3.5) (6.5) Other income/(expense), net (24.1) (27.5) Operating profit % Annual General Meeting May 5,

10 Improved Contribution Margin from Core Business Operating leverage Bolt-on acquisitions 18.1% % % * Adjusted for IFRS 3R 2009* 2010 Before bolt-on and strategic acquisitions 2010 reported Annual General Meeting May 5,

11 Optimized Capex and Increased Global Production Capacity 9% 8% % 6% 7.2% 7.1% 7.7% 183 5% 4% 5.9% % 2% 1% 3.5% 3.2% 0% Capital expenditure net of disposals in millions and in % of revenue Annual General Meeting May 5,

12 Free Cash Flow Up 23% WCR Capex Operating 1000cash flow (excl. WCR) Dividends Capital 600 increase 400 Other** Sperian sale Net financial investments* Reported 200 change in net debt Share buybacks 0 * Including 107m in acquired debt ** Including the change in the cross-currency swap Annual General Meeting May 5,

13 Robust Balance Sheet to Finance Growth In millions 2,735 3,044 1,676 1,892 2,168 2, * 2010 Net debt Equity * Adjusted for acquisition-related costs in accordance with IFRS 3R Annual General Meeting May 5,

14 Shares back to 2008 level In millions of shares Shares outstanding at year-end New shares issued 2.5 To members of the PEE corporate savings plan 0.5 On exercise of stock options 2.0 Existing shares delivered 2.9 On vesting of performance shares and exercise of stock options 1.1 On conversion of OCEANE bonds 1.8 Share buybacks -7.5 Shares outstanding at year-end Shares outstanding on March 31, Annual General Meeting May 5,

15 Dividend Per Share Up 18.6% 0.83* % 35% 36% % 37% % Payout ratio Total payout ( m) Dividend per share ( ) * Submitted to shareholder approval at the May 5, 2011 Annual Meeting Annual General Meeting May 5,

16 > Highlights of 2010 > Outlook 2011 > Essilor share Annual General Meeting May 5,

17 2011 First quarter revenue: improvement in Organic Growth In million % +2.8% +4.4% +1.7% +7.3% % Q Organic growth Bolt-on acquisitions Strategic acquisitions Currency impact Q Annual General Meeting May 5,

18 2011 First quarter Strong momentum in fast growing markets Healthy recovery in developed markets Sharply higher equipment sales 9 new transactions since January 1st Annual General Meeting May 5,

19 > Highlights of 2010 > Outlook 2011 > Essilor share Annual General Meeting May 5,

20 Essilor Share over performs the CAC 40 Index Essilor vs. CAC 40 vs. DJI 2009/2010/2011 Base comparaison : clotûre 31/12/2008 Essilor (29/12/2008) : 33,57 EUR CAC (29/12/2008) : pts Données mises à jour au 02/05/ Essilor 56,6 + 68,6% 50,7 + 51,2% DJI CAC 40* 43,0 + 28,2% 25 janv févr mars avr mai * Indice basé sur le cours Essilor au 31/12/08 juin juil août sept oct nov déc janv févr mars avr mai juin juil août sept oct nov déc janv févr mars avr mai Annual General Meeting May 5,

21 Share Performance Past 15 years Essilor vs. CAC40 depuis since 1996 Base comparaison : clotûre 02/01/1996 Essilor (02/01/1996) : 7.27 EUR CAC (02/01/1996) : pts Données mises à jour au 02/05/ Essilor 56, ,9% CAC 40* 15, ,0% * Indice basé sur le cours Essilor au 02/01/1996 Annual General Meeting May 5,

22 In brief The recovery of the market is confirmed Back to historic level for organic growth Continued efforts to improve operational efficiency Continuation of our acquisition and partnership strategy Annual General Meeting May 5,

23 Annual General Meeting May 5,