Growing in a Bigger Playing Field

 Investor Day – June 25, 2014 – London The Optical Industry in 2014

€68bn in retail value 4.3bn people in need of 1.8bn people wearing vision correction /  +2% CAGR eyeglasses /  +3% CAGR

1.6bn myopes 2bn presbyopes  +3% CAGR  +2.5% CAGR

Investor Day - June 25, 2014 1 The Industry is still Fragmented…

Number of players Breakdown of local across the value chain spectacle lens leaders

Non-prescription Prescription Readers sunglasses

150 to 200 250 to 350 Manufacturers Manufacturers Small operators

150-200 400-600 Distributors 1,500 to 2,000 500-600 & Laboratories Local operators 400-500

Retail 400,000 Eye Care Professionals 200-300

1.2 billion 220 550 million prescription lenses million pairs of pairs of non- readers prescription sunglasses

Source: Essilor estimates

Investor Day - June 25, 2014 2 Value-Added Lens Categories are Underpenetrated

Penetration of total worldwide lens industry in volume, %

Progressive lenses Antireflective lenses Thin lenses

57% 48%

14% 15% 12% 15%

2007 2013 2007 2013 2007 2013

Photochromic lenses Prescription sun lenses Polarized lenses

9% 10% 6.9% 7.2% 2% 1%

2007 2013 2007 2013 2007 2013

Source: Essilor estimates

Investor Day - June 25, 2014 3 Lens Spending per Capita is Low, Particularly in Fast-Growing Markets

55

50

45

40

35 Finland U.K. U.S.A Australia Lens 30 Canada Spending/ 25 Belgium Capita Denmark 20 (€) H.K. Austria Singapore 15 Spain New Zealand 10 Korea Japan China 5 India Russia 0 -5 0 5 10 15 20 25 30 35 40 45 50 -5

-10 GDP/Capita (k€) Source: Essilor estimates, World Bank , 2012 figures Bubble size in proportion to lens market volumes

Investor Day - June 25, 2014 4 Essilor is a Pure Player, Fully Dedicated to “Improving Vision”

Vision solutions Awareness

Poor vision is the world’s leading handicap Yet a full range of solutions exists

Investor Day - June 25, 2014 5 Essilor is a Key Player, but Only in Small Parts of a Large and Growing Optical Industry

Prescription lenses Readers & Sun Contact lenses

Worldwide manufacturers

Worldwide distributors & laboratories < €11.0 bn €7.5 bn +3-4% +6-7%

North America Europe Fast-growing markets Rest of world

Retail

Online sales €3.0 bn +14%

€68.0 bn Essilor market shares

Investor Day - June 25, 2014 6 A Bigger Playing Field, Entirely in

Eye Care Professionals

Geography Strategy

One Mission “Improve Lives by Improving Sight” Consumers Technology

Healthcare

Investor Day - June 25, 2014 7 An Extended Playing Field Leveraging the Full Width of Essilor Capabilities

2008-2013 2013-2018

PRESCRIPTION PRESCRIPTION SUNGLASSES ONLINE LENSES LENSES

Manufacturers, €12.7 bn €8.5 bn €5.8 bn Distributors & Laboratories  +3-4%  +6-7%  +14%

FAST GROWING MARKETS

 +c.10-12%

Developed Markets  +c.1-2% <€11.0 bn €27.0 bn  +3-4%  +6-7%

Investor Day - June 25, 2014 8 Technology is Further Expanding our Playing Field

Online Technologies

Design & Surfacing Technologies

 Premium: personalization Thin Layer  Sun prescription Technologies  Essilor strong both in branded products and in private labels  Coatings  Digital surfacing has increased  Filters value pool accessible to Essilor  Protection  Polarization

Investor Day - June 25, 2014 9 Essilor is Getting Closer to the Consumer

Online sales platform Media spending Initiatives for retail

Investor Day - June 25, 2014 10 Significant Geographic Upside Left

Revenue in Growth drivers New countries fast-growing markets(a)

 Premium / Mid-tier / Entry

 All business models Revenue in € billions  Sun  Partnerships 2018

2.8

2013

1.1 21%*

* As a percentage of total Group revenue

Industry growth in fast- 120 countries & 2.0 billion Expected CAGR: 20% growing markets >10% people yet to cover

(a) Fast-growing markets include China, India, ASEAN, South Korea, Hong-Kong, , Africa, the Middle East, Russia and Latin America

Investor Day - June 25, 2014 11 We Have All the Talent and Resources Needed to Drive this Expansion

Leveraging Essilor Capabilities and Talents

Online Sales  R&D  Supply chain  Segmented offerings  Geographical coverage  Acquisitions  MyOnlineOptical Brands

Fast-Growing Markets

 Acquisitions & Partnerships  New countries  All segments

Investor Day - June 25, 2014 12 Outperforming a Bigger Playing Field

(a) 2013 Change 2018

(b) Industry Size <€11.0 bn €27.0 bn Industry Growth 3-4% 6-7%

~ 10% CAGR

Revenue €5.1 bn ~ €8.2 bn Like-for-Like Growth 3.6% (c) > 6%

~ 11% CAGR EBITDA €1.17 bn €2.0 bn

(a) At constant exchange rates (b) Corrective lenses only (c) 2012-2013 average

Investor Day - June 25, 2014 13

Driven by Innovation  Paul du Saillant – Chief Operating Officer Innovation has been in Essilor’s DNA for 160 Years

 Cooperative roots

 Entrepreneurship culture

 Pioneering through breakthrough innovations in the ophthalmic optics industry

Investor Day - June 25, 2014 15 World Recognition for Essilor Innovations

Awards Won by Essilor R&D Innovations

Investor Day - June 25, 2014 16 A Global Organization Supported by the Best Scientific, Industrial and Academic Communities

Essilor Centers of Innovation & Technology (CI&T) CI&T EUROPE Strategic partnerships Paris IVS Main R&D partnerships Paris Bar-le-Duc Dijon

Norway CROSSBOWS Ireland SATISLOH Toulouse CI&T Montreal, QC Boston, MS London (Dudley) Switzerland AMERICAS and Germany CHEMIGLAS -ESSILOR FGX Seoul Tokyo Smithfield, RI Madrid San Diego SHAMIR Shanghai NEIJRC Israel Tel Aviv Chihuahua, MX TRANSITIONS Wenzhou Tokyo Tampa, FL Bangkok Bangalore

CI&T Singapore ASIA Jakarta

Rio de Janeiro

Melbourne

Investor Day - June 25, 2014 17 Key Expertise by Region

 High-index materials  Polymerisation / Casting EUROPE  Myopia  Anti-fatigue AMERICAS and computer vision  Fundamental studies  Tinting  Computer sciences  Film technologies  Thermoplastics  Chemical characterizations  Nanomaterials  Sputtering  Segmentation  …  Spin coating and Personalization  Dynamic vision studies  Vision ageing  Photochromic  Thin layers ASIA  Polarized  Augmented reality  Web/Net Technologies  …  …

Investor Day - June 25, 2014 18 Essilor Invests More than All Other Industry Players Combined

R&D Expenses* (€m)

200 187

180 164 151 160

140 2009-2014:

120 up 20%

100

80 CI&T 60 Capex: €50m 40

20

0 2009 2013 2014 Est.

* Research, Development and Global Engineering Expenses

Investor Day - June 25, 2014 19 Innovation, a Key Driver for Value Creation

Products

Solutions Services

Investor Day - June 25, 2014 20 4 Main Factors to Build the Innovation Roadmap

 ECP segmentation &  Larger, aging population chains’ development  Urbanization with stronger  New devices for refraction near-vision solicitation and framing  Growing middle class  E-business models  Sensitive to well-being & health Distribution networks Consumer pull Unmet/unexpressed needs INNOVATION ROADMAP

Unsolved problems, Eliminating compromises Technological push Geographic specific needs, Sun

 See-through display  Mass Prod / Prescription Lab  Embedded electronics  Premium / Mid-tier / Emerging and wearable computers  Single vision vs multifocal lens  High technologies on thin layers  Sun

Investor Day - June 25, 2014 21 Roadmap Integrated into the Wearer Lifespan…

Myopia

Segmentation and personalization / Web

Health

Seniors

Sun, polarized and photochromic

Investor Day - June 25, 2014 22 …Addressing 6 Growing Segments…

Presbyopia Myopia Health & seniors

↗ Peri-central acuity ↗ Detecting at very early stage ↗ Reducing AMD factors ↗ Stability on dynamic vision ↗ Slowing the pace of myopia ↗ Reducing UV effects ↗ Adaptation to progressives ↗ Decreasing eye fatigue ↗ Migraine ↗ Better night vision ↗ Lens thickness ↗ Amblyopia

↗ Color blindness

Sun, polarized Personalization Online & photochromic & segmentation

↗ Color choice with dyes expertise ↗ Morphological parameters ↗ e-platforms for wearers

↗ Dark and clear balance ↗ Behavior parameters ↗ Virtual Try-On

↗ Prescription Sun ↗ Ethnicity ↗ Distance measurement accuracy

↗ Polarized lens technologies ↗ Gender ↗ Kiosk and brick and mortar models for each substrate ↗ Age ↗ Web models

Investor Day - June 25, 2014 23 …With Promising Innovation Curves

100.0%

90.0%

80.0% Unsolved problems Unmet needs 70.0% Prevention / protection 60.0% Personalization 50.0% WHERE WE CURRENTLY STAND 40.0% Crizal Prevencia Crizal UV 30.0% Varillux S series Optifog 20.0% Definity dual add Airwear polycarbonate Crizal Antireflective coating 10.0% Transitions photochromic lens Varilux Orma 0.0%

Investor Day - June 25, 2014 24 Three Areas of Excellence

Chemistry Designs Technology

 Substrates  Progressive lenses  Satisloh

 Coatings  Personalization/segmentation  Web technologies

 Photochromic dyes  Digital surfacing  Measuring: IVS, instruments…

 Filters and additives

Investor Day - June 25, 2014 25 Around 70% of Lens Value Comes from Coatings and Materials….

Substrates Equipment Technologies

↗ >7 different substrates ↗ Vacuum and plasma coaters ↗ Injection ↗ Thermoplastic ↗ Polymers ↗ Casting ↗ Mirroring processes ↗ Spin, dip, vacuum, plasma Thin layers ↗ Dip coating machines ↗ Gradient, tinting ↗ Organic and mineral ↗ Film lamination compound deposits ↗ Tailor-made color ↗ Films ↗ Wafer injection ↗ Wafers ↗ Surface functionalization ↗ Dyes ↗ Film production for edging process (Azur) ↗ Filters (UV,…)

Patents

50% of Group patents are dedicated to coatings and materials

A unique set of capabilities to create new products

Investor Day - June 25, 2014 26 Around 70% of Lens Value Comes from Coatings and Materials….

Size = number of functions (added value) on the lens

Polarized

Photochromic

UV Back Side Blue Light Protection

Anti-fog Scratch Booster

Anti-static

Easy to clean

Anti-reflection

12 14 16 18 20 22 24 26 28 30

Nbr of layers

Investor Day - June 25, 2014 27 …While around 30% Comes from Designs

 Good vision correction comes from high performance designs

 Accrued experience is essential to creating new designs

 3 major players own the design patents: Essilor, Zeiss and Hoya/Seiko

 Quality guarantee is central: Essilor validates all its designs with thousands of wearer tests in every region of the world

 Today, technology makes it possible to apply designs on the front, the back or both sides of a lens

The value of progressive lenses is in the design, not in the technology

Investor Day - June 25, 2014 28 Essilor is the Leader in Digital Surfacing

 Digital surfacing has been an opportunity for Essilor and the industry… for 20 years  Greater levels of personalization and customization have been reached with digital surfacing  Quality and performance of designs are far more important than the technology itself  Essilor has embraced the technology in all of its businesses

 Digital surfacing has a positive impact on logistics optimization, and therefore costs and WCR

Essilor is best positioned to capture digital surfacing opportunities in both branded and mid-range products

Investor Day - June 25, 2014 29 Transferring Know-How to the Sun Industry

Core Lenses Core Lenses (clear and (clear, and Sun prescription sun) prescription sun)

 Correction 2013 2018 . Traditional, DDS, FBS  Vision comfort . Scratch resistant . Anti-reflective . Anti-static . Easy-to-clean, smudge-free . Anti-fog  Functionalities . Photochromic . Polar  Protection . E-SPF 25, E-SPF 50 E-SPF 50  Prevention . Bad blue light protection . Computer anti-fatigue lenses

Investor Day - June 25, 2014 30 Seize Opportunities from Unsolved Problems

Lenses sold per year

1,200 Better resistance, lighter, thinner lens, better fit to frame, better eye shape 1200000

1000000 Abrasion free Windshield

800000

Smudge free, Invisible 600000600 Thin UHI no rain bad lenses blue cut Less temperature 400000 Permanent dependent activation

200000

0 0 2013 Anti- Easy-Clean Progressive Photochromic Anti-Static Polarized Computer & Anti-Fog UV Protection Blue Light Reflective Anti-Fatigue Protection

Investor Day - June 25, 2014 31 Great Start for New Products… More Growth to Come

Correction Protection Prevention

Deflect harmful Blue-Violet Light

UV protection

 Varilux S series: up to 40%  Transitions Graphite Green: market penetration. Growing Launched in May in every fast in the US and Brazil region  Crizal Prevencia:  Worldwide adoption of UV Up to 15% of Crizal volumes protection and E-SPF by in France leading key accounts

Investor Day - June 25, 2014 32 Future Product Launches

Chemistry Designs Technology

 New level of performance  Innovative lens for myopes  High base curve for sun for Crizal  Myopia control for children lenses  Thinnest high-index polarized  New technology for Varilux  Virtual try-on for web users lens Comfort and Varilux Physio  Polarized Photochromic

Investor Day - June 25, 2014 33 Yesterday… Today… Tomorrow… Essilor is a Pioneer

Customer Augmented Myopia Health Sun experience reality

Selective filtration 2020 Sun lens designs Online technology Personalization 2010 Digital surfacing Anti-reflective lens 2000 Photochromic lens Progressive lens 1990 Organic lens 1960

Investor Day - June 25, 2014 34 Building Stronger Consumer Brands  Carl Bracy – VP US Marketing & Business Development  Alain Riveline – VP Strategic Marketing Why Market to Consumer in Optics?

Fundamentals in optics New phenomena

Unrealized category growth More educated shoppers and repurchase rate potential from browsing to purchase

Growing complexity, more Improving ECP ability choices and sophisticated to explain innovations ↗ Because it works innovations

Other players compete Improved balance between for consumers’ choice: managed Fashion & Function care, retail, frame brands

Grow the industry

Investor Day - June 25, 2014 36 Positive Impacts of Consumer Marketing in Optics

For consumers For ECPs

↗ Educational ↗ Confidence to prescribe ↗ Empowerment and explain innovations

↗ Clearer choice ↗ Strongly relay POS execution

For managed care For Essilor

↗ Accelerate category building ↗ Better clarity on coverage and pricing decisions driven ↗ Brand building by product benefits ↗ Organic growth

Investor Day - June 25, 2014 37 Transitions: Year on Year Growth in Brand Building

TV AD TV AD Product Launch Revenue

Product Launch

Product Product Launch Launch

Product Launch

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Similar successes with Varilux in France, Brazil, Portugal and Spain

Investor Day - June 25, 2014 38 Essilor Learning Curve and Deployment Plan for Building Consumer Brands

 2009-2013: Deploying winning models to be used in each geography

 2014-2016: Global deployment in selected countries

 2016 onwards: Further global deployment

Investor Day - June 25, 2014 39 Establishing Brand Awareness (Crizal, US)

Investor Day - June 25, 2014 40 Establishing Brand Awareness (Crizal, US)

 Key Message: . New Crizal protects your lenses and your eye health . Scratch-proof, smudge-proof, no-glare lenses now have E-SPF 25 – to help protect your eyes 25 times more from the damaging rays of the sun

 Four-quarter media presence

 Q1 2014 Results . Crizal grew 9.1% in Q1 2014 . Penetration increased 3% in Q1 2014

Investor Day - June 25, 2014 41 Building on Top of an Established Brand (Crizal Prevencia, France)

Investor Day - June 25, 2014 42 Building on Top of an Established Brand (Crizal Prevencia, France)

 Key messages . Dangers of light & Crizal Prevencia as the solution . Call to action (satisfied or exchanged offer)

 Media plan . Print campaign – 14m contacts . Radio: 66m contacts (national and local stations) . Digital and professional marketing waves

 Q1 2014 Results . Prevencia penetration rate and volume doubled . Total Crizal growth: +6.1% during the campaign

Investor Day - June 25, 2014 43 Building a Brand with a Seasonal Campaign (Xperio UV, US)

Investor Day - June 25, 2014 44 Building a Brand with a Seasonal Campaign (Xperio UV, US)

 Key messages . Polarized Sun lenses are available in your prescription . Xperio UV eliminates 100% glare, offers crisper vision and brighter colors

 Media plan . 360° media campaign: Seasonal media wave March-July 2014 . Pullthrough maximized with POP campaign in ~3000 iECP offices (May)

 Results . 2013: Polarized lens unit 2x segment growth rate . 2014 YTD: • Xperio UV growth: 21% • Polarized lens unit growth: 12.7% iECPs

Investor Day - June 25, 2014 45 Improving Campaign Return on Investment: the Essilor Experience

By adding By providing By assisting consumers in merchandizing promotion

 Crizal  Singapore  Increasing multi-pair  Varilux  Czech Republic  Transitions  …

Essilor constantly deploying new concepts

Investor Day - June 25, 2014 46 Adding in Promotion with Group ECP Partners

 Key messages . Varilux superiority . Second pair with special price on Crizal Transitions or Prevencia

 Media plan . Quarterly TV waves . POS marketing support

 Results . Varilux yoy growth: 30/40% in volume . Varilux share growth in PAL mix

Investor Day - June 25, 2014 47 Vision is More Important than Fashion for Key Retailers

Investor Day - June 25, 2014 48 Deploying New Business Model with Key Accounts

 Key concept . Pushing « Branded vision correction solutions » within Walmart’ « Save Money Live Better » mission

 Key messages . Nikoneyes lenses give sharper & clearer vision, resist scratches & reduce glare, and now have E-SPF 25 protection . Satisfaction guaranteed . Available at Walmart & Sam’s Club

 Results . First 12-month Nikoneyes unit growth: c.50%

Strong value creation based on co-sponsored brand building

Investor Day - June 25, 2014 49 A Step Change in Resources to Talk to Consumers

 Total Group* consumer marketing budget projection

€125m >€125m €25m

2013 2016 2018

* Excludes Bolon, Molsion and Costa media spendings

Investor Day - June 25, 2014 50 To be Deployed Globally in Selected Countries

2014 Resources 2014 Allocation

Essilor 2014 incremental budget North America (Transitions synergies) 35 33

12 Europe Regular Essilor €90m Amera media consumer budget 25 5 7 Latin America 3 Others

Transitions own media 30 30 Transitions own media consumer budget consumer spend

↗ Priorize core countries and proven brand building models 2014 ↗ Open new countries, including fast-growing markets

↗ Redeployment of Transitions consumer marketing budget 2015 - 2018 ↗ Accelerate the deployment of proven models ↗ Starting new models (brands, media, etc.)

Investor Day - June 25, 2014 51 New Plan to Build Permanent Media Presence in the US as of Q4 this Year

Investor Day - June 25, 2014 52 Getting Closer to the US Consumer with…

Adults 35-54 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Investor Day - June 25, 2014 53 Leveraging Essilor Key Brands to Constantly Raise Consumer’s Awareness on Good Vision

Adults 35-54 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

Week Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

50 weeks on air in a year!

Investor Day - June 25, 2014 54 Building Stronger Consumer Brands Will Push Innovation

 Accelerate category building in strategic countries

 Reinforce Group pricing power on high margin products

 Build the right brand portfolio as long-term Group assets

Boost group organic growth Strengthen Essilor’s leadership

Investor Day - June 25, 2014 55 “Here Comes the Sun…”  Eric Thoreux – President Sun & Readers Group Chief Marketing Officer

Sun: Over 50 Years of Expertise

2014 Organic Drivers Acquisitions Snapshot

Costa/Intercast Polaroid Bolon  c. €500 million revenue Onbitt /Polycore Xperio  c. 70 million sunglasses FGX / Stylemark Polarized Kbco  c. 25 million prescription 2000 BNL sun lenses Transitions Cartier 1990  12 sun specialist labs Killy Tint/Mirror  A leader in premium Armor non-prescription sun lenses 1950

Investor Day - June 25, 2014 57 An Underpenetrated Category with Solid 5% to 7% Growth

Structural drivers Under-penetrated category

EMERGING MIDDLE World population owning sunglasses CLASSES c85%

CHILDREN c25%

FASHION Today Potential

Sun prescription among eyeglass wearers c50% AGING c10%

Today Potential

AWARENESS Source: Estin & Co estimates and analysis; Essilor International Several growth engines for Essilor: fragmentation, prescription, better vision, health, innovation (polarized, etc.)

Investor Day - June 25, 2014 58 Today, Most Sunglasses Don’t Offer the Right Vision Quality

Street Sales Mass Channels Specialty Retail

15 $ 150 $ 300 $

 Sunglasses sold on the street can be harmful  Limited differentiation in vision quality whatever the price  Technologies exist to differentiate vision performance

Investor Day - June 25, 2014 59 Essilor’s Strategy to Change the Sun Game

Setting a new sun lens standard  Leverage Essilor’s unique assets R&D, consumer / shopper Innovate beyond understanding, etc. fashion  Improve lens performance: prescription and non-prescription to answer growing needs for better vision and protection  Leverage lens innovations to serve our brands as well as other players

Deploy sustainable growth strategy  Leverage their clear positioning to innovate and expand Acquire strong in more segments and channels regional brands  Set up the best prescription offer  Leverage Essilor’s experience and global networks to expand globally  Capitalize on our new Internet strength

Comprehensive Prioritize our proprietary brands approach  Multiple price point expertise  Multiple channel expertise

Investor Day - June 25, 2014 60 A Strategy Capturing Growth in all three Sun Segments

Lens Innovation Retail + Lab Service sell-out price (For clients such as , Safilo, etc.) Performance Luxury fashion  RSP > $100 Lens Innovation  RSP > $100  26m units + Lab Service + Brand Portfolio  12m units +Multi-price Point

Entry/ mid-tier

 RSP $5 - $100 Brand Portfolio + Supply Chain  510m units + Key Account + Acquisition Consolidation

“INFORMAL TRADE”

Functional use

Investor Day - June 25, 2014 61 Essilor has the Right Capabilities to Succeed in Sun …

Core Essilor . R&D . Rx Labs . Mass manufacturing Frames / Logistics . Scale: 125m pairs of eyewear Consumer Access . Chinese partners . Multi-channel presence . Partnerships with Sun players . Online presence

Brand portfolio Sun Lens know-how

Prescription Sun know-how

Investor Day - June 25, 2014 62 … a Strong Portfolio of Proprietary Brands…

 8 major proprietary sun brands

 Strong awareness and annual sales growth since acquisition

. Foster Grant: 80% in US, sales up 10%

. Bolon: 85% in China, sales up 20%

. Costa: 60% in US shore fishing communities, sales up 15%

 Doubling FGX revenue since acquisition in 2010 (at constant exchange rates)

Investor Day - June 25, 2014 63 … and Unique Innovations

Technology Retail Offerings

Design Value-added Frame

Performance and Fashion Frame/Lens Package Polarized Lenses

Investor Day - June 25, 2014 64 An Operational Set-up Aligned with Business Priorities

 Profitable growth  Bolt-on acquisitions Entry / Mid Tier Sunglasses  Growing product offer (sun prescription, readers) FGX + Yarui  Increased distribution and Internet  New consumer segments (children)  Bolt-on acquisitions

 Growing product offer Performance (sun prescription, product technology, female) Sunglasses  Increased distribution Costa (10k US doors, new channels) and Internet  Strategic acquisitions

Performance Lenses  Increase in profitability Polycore, BNL, …

Investor Day - June 25, 2014 65 Synergies: Examples of Opportunities

Cost Synergies Business Synergies

Performance sun lenses Performance sun lenses

↗ Combine operations ↗ Polycore to supply Bolon with CR39 lenses ↗ Leverage Polycore factory

↗ Increase factory yields

↗ Leverage Essilor technologies Sunglasses ↗ Buy surfacing machines from Satisloh Sunglasses ↗ Essilor coatings ↗ Shamir designs ↗ Increase Costa’s 15% margin ↗ Leverage Essilor Canada ↗ Streamline SG&A for Canadian expansion ↗ Leverage FGX finance/legal support

 $6 - 8m  $2 - 3m

Investor Day - June 25, 2014 66 Future Synergies will Depend on Acquisition Types

Smaller Bigger Acquisition Acquisition

Synergy categories  Sourcing scale  Shared services  Product development  Prescription lens  Shared key accounts  Internet & distribution

Investor Day - June 25, 2014 67 A Profitable €1.1bn Sun Business by 2018

Sun revenue 2013-2018 snapshot

€ billion

 Organic revenue* growth: ~ 7% p.a. from 2015

2018  Total revenue growth > 10% p.a. from 2015

1.1 . € 100-150m of new acquisitions

 Profitability in the high teens 2013

0.5

*40-45% revenue from sun lenses reported in “Lens and Optical Instruments” / 55-60% revenue from sunglasses reported in “Readers”

Investor Day - June 25, 2014 68 A Clear Integration Plan for High Value Creation  Bertrand Roy – SVP Strategic Partnerships A Global Leader in a Key Optical Category

 A unique business model supplying Innovation leadership major lens manufacturers . A powerful product portfolio:  Everyday lenses (clear to dark): Transitions Signature VII, . 2013 revenue: $844m, of which $279m Transitions Vantage (clear to polarized), Xtractive (driving)  Sun lenses (dark to darker) with third party lens manufacturers . Superior product performance: 170 patent families . 90% of revenue from products less than 4 years old  Strong ties with Essilor

. Co-created in 1990 and co-managed One of the most renowned brands in optics in JV (49%/51%) with PPG Industries . Over $500m invested in consumer marketing since inception  Operational excellence Aided Transitions brand awareness among prescription Eyeglass wearers . Distribution in 75 countries 86% 63% 59% . Available in over 100 designs (open business model) USA Brazil Singapore

Investor Day - June 25, 2014 70 The Largest Transaction in Essilor’s History Set to Create High Value

 Acquisition price*: $1.73bn on closing and $125m spread over five years for 51% of Transitions . Adjusted 2013 EBITDA acquisition multiple**: 11.8x . Post Transaction Gearing*** < 0.4x

 Impacts on Group financial metrics: . Increase Essilor’s contribution margin by 150 bp after PPA costs by mid-2016 . EPS accretive from Year 1 of the integration and by at least 5% p.a. from Year 2 . Increase Essilor like-for-like growth by 50 bp from Year 3 of the integration

*Including 100% of outstanding shares of Intercast **Adjusted for royalties paid to shareholders *** Consolidated net debt to equity

Investor Day - June 25, 2014 71 Management of Light: an Essential Vision Need

High consumer awareness High interest in finding out more Strong retention within the category Category Awareness Intent to Ask ECP About Transitions Wearers’ Intent to Among Prescription Eyeglass Photochromic Lenses Among Purchase Transitions Next Time Wearers (%) Eyeglass Wearers (% very likely) (% Definitely/ Probably)

95 92 93 86 83 76 75 76 65 54 55 59

A category building on wearer’s satisfaction and loyalty

Source: Transitions Consumer Brand Tracking (MSW-ARS)

Investor Day - June 25, 2014 72 Significant Untapped Photochromics Potential in All Geographies

China is the biggest opportunity in volume Canada 15% Eastern Europe Western Europe Asia Japan 10% 6% USA 19% 5% 1% 5% Mid-tier still underpenetrated Africa/Middle-East 18%

Latin America India 9% Successful mid-tier strategy in Brazil 27% 17% >80 % in glass 25% South Africa Australia 0% ~ 5% 5% ~ 10% Same penetration in SV and PAL New 10% ~ 25% Zealand > 25% Source: Essilor estimates - IM 2011

Investor Day - June 25, 2014 73 Setting the Path for Growth

Significant room to Photochromic segment grow in all segments growing twice as fast as the optical industry 19% 400

300

10% 200 6%

100

0 Single vision All lenses Progressive 2000 2004 2008 2012 2016 2020 lenses lenses Base 100: volume in 2000 / Source: Essilor estimates

Penetration rate of photochromic lenses in volume

Enhance product positioning and features to develop myopia share

Investor Day - June 25, 2014 74 Integrating Transitions As a Product Line

Increase sales and …while keeping an Reinforced R&D marketing efficiency… open business model capabilities

 Leverage Essilor & Transitions  Build on brand loyalty  Resources alignment expertise  Bespoke developments  Specific product development  Build on brand recognition outside  Time-to-market innovation the US  Leveraging Transitions technologies

An organization to maximize the reach to eyecare professionals

Investor Day - June 25, 2014 75 Driving Faster Growth Through Better Use of Group Capabilities

Leveraging all Actively managing Enlarging distribution networks a rich brand portfolio with new categories

 ECP’s/Key accounts  Segmentation  New tints  Mid-tier and low end  Pricing power  Clear to polarized  Fast-growing markets/Europe  Dark to darker  Adapted SV lens offerings

Develop the photochromic segment worldwide

Investor Day - June 25, 2014 76 Generating Over $100 million of Synergies

Increase efficiency Optimize the supply chain of marketing spending

↗ Co-branding campaigns ↗ Lean manufacturing ↗ Leveraging Group’s ECP sales ↗ Working capital force makes it possible to ↗ Obsolescence management streamline Transitions sales ↗ New business models force

A clear integration plan with low execution risks

Investor Day - June 25, 2014 77 “Optics 2.0”: A Major Growth Opportunity  Jean Carrier – President, Essilor of America  Roy Hessel – President, Online Initiatives The Online Optical Industry is on a Fast Track

Global online optical retail* (in € billions)

As a percentage of the total optical retail industry

+14% 2013-2018e CAGR 5.8 +13% 2008-2013 10-15% CAGR

3.0 2.7 6% 2.4 2.0 1.6 1.7 c.4%

c.2%

2008 2009 2010 2011 2012 2013 2018e 2025e

* Includes online pure players and click & mortars / for spectacles, contact lenses and sunglasses Source: Estin & Co 2013 estimates and analysis; Essilor International

Investor Day - June 25, 2014 79 Global Online Optical Potential is Significant

Worldwide Penetration Rate of Online Optical Retail*: c.4%

Scandinavia 6% UK 10% Germany Japan 4% 8% 2% 7% France North America 4% China

Online optical retail* Latin America as a percentage of total optical retail industry 1% (in value) 1% – 2% 4% 2% – 5% 5% – 10 % Australia / New Zealand Major growth drivers: Internet penetration, increased comfort with online payments, technology improvements (e.g., virtual try-on in 3D), etc.

* Includes online pure players and click & mortars / for spectacles, contact lenses and sunglasses Source: Estin & Co 2013 estimates and analysis; Essilor International

Investor Day - June 25, 2014 80 All Optical Products are Sold Online Today…

Investor Day - June 25, 2014 81 ...But Everything Must Begin with an Eye Exam which Still Cannot be Done Online

Necessarily done by an eye care Can be done Relationship Ophthalmic professional (ophthalmologist or online today management Examination optometrist) Cannot be done (“stay in touch”, online today re-trade, trade across)

6 1

Optical Payment 5 Consumer 2 Prescription Journey

4 3

Only basic measurements Measurements Product education All optical products are sold are available online (e.g., PD) as needed & selection online: contact lenses, frames, prescription eyeglasses, sunglasses, readers

Investor Day - June 25, 2014 82 Essilor has Invested in this Field for Many Years…

Customized supply chain for online players

2000 2004 2009 2010 2012 2013 2014

Investor Day - June 25, 2014 83 … Has Built Solid Expertise…

Customized supply chain Online Marketing Expertise  Back-office support for several North  Category push: anti-reflective, American and European online players polarized, anti-UV, photochromic  EyeBuyDirect supply chain from lenses Danyang  Dedicated online brand: Teklite  Various marketing approaches: banners, search engine optimization (e.g., Google), paid search, affiliates, affinity publishers, etc.

 Frames Direct: premium, branded frames, c$250-350 per pair  EyeBuyDirect: unbranded frames,  Suite of online services for Eye c$50 per pair Care Professionals, including  Sun brands already very active a virtual store platform: online (Bolon & Costa) MyOnlineOptical (adopted by  FGX web stores: Fostergrant, 1,500+ ECPs) Ryders, Gargoyles, Turn-key online Readerglasses.com, etc. services/solutions Multi-channel models

Investor Day - June 25, 2014 84 … And Learned to Expand Globally

 Likely to grow rapidly as it meets a specific need: younger consumers with simple vision correction  Supply chain capabilities are key for success  Efficient media to educate consumers on the importance of vision and solutions and to push categories (anti-reflective, anti-UV, etc)  Drives behaviors that increase overall demand for optical equipment Online Channel Higher appetite for… … multi-pairs … re-trade … antireflective lenses Average pairs per order Average renewal rate years Average penetration rate

100% 1.4 c.3 ≥1 57% 0.8

EyeBuyDirect Worldwide EyeBuyDirect Worldwide Coastal.com Worldwide

 Remain the best channel for sophisticated progressive lenses, personalized lenses and tailored customer services Role of  Clear role to play online: connecting with existing consumers, offering a wider range Eye Care of frames, etc Professionals  MyOnlineOptical approach works well… Eye Care Professionals need it to compete and are asking for it

Investor Day - June 25, 2014 85 Strong Financial Upside

Strong Revenue Growth Better margins per consumer

Year-to-date like-for-like revenue growth Base 1 = Essilor Lens Business’ estimated contribution margin per consumer +30% x5

+22%

x2

1

Lens Business

US market prescription eyeglasses

 Order size Key profitability  Integrated supply chain drivers  Marketing efficiencies for customer acquisition, loyalty and product mix

Investor Day - June 25, 2014 86 Shaping the Development of the Online Channel with our Customers for the Benefit of Consumers

Eye Care Professionals Online Players  Eye Exam / Health  Simple vision correction needs  Refraction (single vision products)  Complex products  Information and education  Personalized products platform for consumers  Tailored customer services  Key brands (e.g., Varilux)

 Referrals  Traffic  Shared technologies (e.g., MyOnlineOptical)

Investor Day - June 25, 2014 87 New Online and Mobile Technologies are Accelerating the Development of the Online Channel

 Innovations in online frame fitting technologies increase customer take-up and conversion rates of the channel  New lens performance visualization techniques educate customers and drive higher value orders  Mobile sites and technologies increase access and frequency of purchase

Investor Day - June 25, 2014 88 Coastal.com, a Major Online Vision Care Retailer

Revenue by Segment Strategic Overview

Global player (based in Vancouver) Eyeglasses 27% ↗ ↗ Large multiproduct platform

↗ Strong strategic fit to drive profitability 73% Contact Lenses ↗ Future consolidation platform

Revenue by Region Key Financials

Rest of the 22% ↗ 2008-2013 revenue CAGR: 13% world 34% Canada ↗ 2013 net loss: CAD (16)m 9% ↗ Financial loss solely in eyeglasses

Sweden 19% 16% USA ↗ Consolidated since May 1, 2014

Investor Day - June 25, 2014 89 Our Plan with Coastal.com: Global Growth and Value Creation

 >10% p.a. revenue growth . New team in place, combining Essilor, EyeBuyDirect, Frames Direct and Coastal strengths . Leverage the platform and best practices for worldwide development

 Synergies of CAD 30-35m . Optimize marketing spend . Synergize supply chain (lenses, purchases, laboratories) . Essilor know-how especially relevant to eyeglasses division

Reaching double digit margin by 2016

Investor Day - June 25, 2014 90 Our Ambition: To Build a Profitable €400-500m Online Business by 2018

In € millions

 Strong organic growth

2018  Selected bolt-on acquisitions

 Synergies

400-500  Cost optimization

2014

2014-2018 CAGR: (1) 2013 c.185 >20% Margin: 10-12% c.30

(1) Including Coastal.com full-year revenue

Investor Day - June 25, 2014 91 2018 Blueprint for Value Creation  Laurent Vacherot – Chief Operating Officer A Stronger Essilor Since 2008

 Innovation leadership . E-SPF (UV), Blue Light, Varilux S, Optifog, photochromic segment, etc. . New CIT organization

 Strengthened market coverage . Mid-tier, FGM expansion, new countries . New Vision Generation initiative

 Reinforced human resources and expertise . 55,000 employees dedicated to a central mission: providing better vision . Internationalized Executive Committee

 New growth platforms: Readers & Sun, Equipment, On-line models

 Operational and management efficiency

Increased global industry share with no additional debt

Investor Day - June 25, 2014 93 Delivering High Shareholders Returns

Revenue +€2 billion in 5 years EBITDA + 40 basis points

(in €m) 1 200 (in €m) 4 800 1 100 CAGR: 4 300 1 000 CAGR: +10.5% 3 800 900 +10.9%

3 300 800 700 2 800 600 2 300 500 1 800 400 2008 2013 2008 2013 Free Cash Flow €2.5 bn in 5 years Dividend €880 millions in 5 years

(in €) 240 (in €m) 550

CAGR: 200 CAGR: 450 +12.1% +11% 160 350

250 120

150 80 2008 2013 2008 2013

Investor Day - June 25, 2014 94 €2 Billion in Additional Revenue Generated by Organic Growth and Acquisitions

MM organic growth FGM organic growth Strategic acquisitions Bolt-on acquisitions 6

5

+€2bn* 4

3

2

1

0 2008 2013

Web Readers & Sun Equipment Lens (FGM) Lens (MM)

* Split excluding the change in currencies and the change in the method of consolidation

Investor Day - June 25, 2014 95 Fast Growth while Maintaining High Quality Margins

18.1% 18.1%

+50 -50 +50 -50 +30 +60 -60 -20 -50 +40

2009 2010 2011 2012* 2013 Operating leverage = 210bp (in bp)

Dilution from acquisitions (in bp)

2008 2013

Initial dilution from acquisitions consistently offset by:  Operating leverage  Synergies from acquisitions and partnerships

*Of which 20 bp gain stemming from change in the method of consolidation

Investor Day - June 25, 2014 96 What is the Ambition for the Next 5 Years?

Playing Field Sales EBITDA Cash Return

Creating More Value While Expanding the Playing Field

Investor Day - June 25, 2014 97 A Clear Value Creation Plan for Each Segment

Playing Field Sales EBITDA Cash Return

2013-2018

PRESCRIPTION LENSES SUNGLASSES ONLINE

Accelerate in our core industry Outperform the industry Grow a profitable distribution channel innovation roadmap Performance sunwear Consumer marketing push Selected brands Capture higher value per sale Leverage Transitions acquisition Push Rx Solutions Build a strong consumer data base Bolt-on acquisitions strategy Leverage Group capabilities Leverage Group supply chain Targeted acquisitions Opportunistic M&A

Expand in fast-growing markets: €2.8 bn revenue ambition €12.7 bn €8.5 bn €5.8 bn

 +3-4%  +6-7%  +14% €27 bn Outperforming every segment  +6-7% through organic growth and acquisitions

Investor Day - June 25, 2014 98 Building a Stronger Portfolio in Optics to Capture New Long-Term Growth Playing Field Sales EBITDA Cash Return

Sales in €bn Organic Acquisitions* Major acquisitions done**

9 ~0.5 8 ~1.1 7 >€3bn ~0.8 6 5 0.5 ~2.2 0.5 4 1.0 3 ~3.6 2 3.0 1 0 2013 2018e

Web Sunlens & sunwear Equip&Instr. + Readers Clear Lens (FGM) Clear Lens (MM)

Growing at c.10% over the next 5 years***

* Excluding new strategic acquisitions ** Transitions, Yarui, Costa, Coastal.com *** On average, at constant exchange rates

Investor Day - June 25, 2014 99 Key Acquisitions Strengthening the Group’s Business Portfolio Playing Field Sales EBITDA Cash Return

PRESCRIPTION LENSES SUNGLASSES ONLINE

1) Costa ACQUISITION Transitions Coastal.com 2) Yarui (Bolon)

Take the lead in one of the Innovate in performance Grow a profitable RATIONALE fastest growing optics sunwear and expand distribution channel category in the mid-tier globally

1ST YEAR 1) c.€80-85m (>1.5%) SCOPE EFFECT c.€200m (<4%) c.€150m (c.3%) (IN % OF SALES*) 2) c.€75-85m (c.1.5%) MID-TERM IMPACT ON ORGANIC +50 bp** ~15bp ~10bp GROWTH

Continue partnerships New geographies / NEXT MOVES Selected brands and seize opportunities products

* At constant exchange rates ** As of year 3 after integration

Investor Day - June 25, 2014 100 Balanced Revenue Growth Between Mature Markets and Fast-Growing Markets Playing Field Sales EBITDA Cash Return

Targeting Revenue of ~€8.2bn by 2018

Dedicated strategy to provide better 2.8 vision to more than 80% of WW population

Fast-growing 1.1 markets 5.4 Still a lot of 4.0 untapped potential Mature markets in mature markets

Sales in €bn

* At constant exchange rates

Investor Day - June 25, 2014 101 Solid, Sustainable Organic Growth

Playing Field Sales EBITDA Cash Return

>80bp >70bp >100bp >6%  Innovation  Strong  Sunglasses  Media push Demand  Sun lenses 3.6%  Photochromic  Trade-up  Web  Country focus  New countries

2012-2013 Share gains Favorable FGM ambition 2018 trend average business mix

Gradual acceleration in organic growth

Investor Day - June 25, 2014 102 Implementing a Successful Acquisition Strategy

Playing Field Sales EBITDA Cash Return

Low integration Fast turnaround Pursuing partnership risk for Transitions at Coastal.com strategy with local players

Plano Prescription Lenses Readers sunglasses

20%

 Manufacturing & marketing  Significant synergies costs  Proven value creation strategy reinvested in brand building  Reach double-digit margin  Rich pipeline of new targets

Clear integration plans to deliver quick returns

Investor Day - June 25, 2014 103 Leveraging the Group’s Innovation Edge

Playing Field Sales EBITDA Cash Return Developing key categories Media push on High-value solutions in every segment high-margin brands for key accounts

Materials Designs  Photochromic deployment  Dual side  High indices  Full backside  Sun prescription

Coatings  Protection / Prevention & new functions  Cascading in mid-tier …  Sunwear

 Balanced value drivers  Over €500m in consumer  Leveraging Group capabilities: marketing investments . Supply chain, IT, Technology . Product portfolio . Brands / Private label

Strengthening our pricing power in the high-end and in the mid-tier

Investor Day - June 25, 2014 104 Continuous Cost Optimization

Playing Field Sales EBITDA Cash Return

Industrial efficiency programs Supply chain Cost management

Shared services Laboratories

 Lean management  Transitions  Opex efficiency  Fixed costs reduction  On-line model efficiency  Productivity gains  Synergies with Sun business

Investor Day - June 25, 2014 105 From non Dilutive to Margin Accretive Growth

Playing Field Sales EBITDA Cash Return

2008-2013 2013-2018 Ambition

 Expected Revenue CAGR:  Revenue CAGR: 10.5% ~10%

 Stable operating margin  Increase in EBITDA margin by more than 100bp

Investor Day - June 25, 2014 106 2018 Free Cash Flow Ambition: €1 Billion

Playing Field Sales EBITDA Cash Return

Financial discipline Steady deleveraging

Capex supporting growth 2500

. 4% to 5% of sales 2000

Bolt-on acquisition strategy 1500

. €200-250 million per annum 1000

Dividend pay-out Ratio 500 . Keep current level 0 2013 2014 2015 2016 2017 2018

Without new strategic acquisition * At constant exchange rates

Investor Day - June 25, 2014 107 Return on Capital to Remain High

Playing Field Sales EBITDA Cash Return

ROCE will continuously remain over-market:  Significantly higher than average cost of capital  Catching up as of 2016

ROCE*

Value creation

WACC** scenarii

2014e 2015e 2016e 2017e 2018e

* Return on capital employed, excluding new strategic acquisitions ** Weighted average cost of capital: market consensus and estimate

Investor Day - June 25, 2014 108 Creating Value in a Bigger Playing Field

2013 Change 2018

Market Size <€11.0 bn €27.0 bn

Market growth 3-4% 6-7%

Total Revenue Growth (ex-currency) ~ 10% CAGR Like-for-like growth 3.6%* >6%

~ 11% CAGR EBITDA €1.17 bn ~ €2.0 bn

~ 12.5% CAGR FREE CASH FLOW €0.55 bn ~ €1.0 bn

NET DEBT From c.€2 bn** to c.€1 bn

Excluding new strategic acquisitions * 2012-2013 average **Including the financing of Transitions and Coastal.com acquisitions

Investor Day - June 25, 2014 109 Growing in a Bigger Playing Field  Hubert Sagnières – Chairman & CEO A Bigger Playing Field, Entirely in Optics

Eye Care Professionals

Geography Strategy

One mission “Improve lives by improving sight” Consumers Technology

Healthcare

Investor Day - June 25, 2014 111 Essilor by 2018

€ 2.8bn in fast-growing markets /  ~20% CAGR €8.2bn Revenue > 6% like-for-like growth  ~10% CAGR

€ 0.5bn Online revenue € 1.1bn Sun revenue < €1.0bn Net debt  ~20% CAGR /  ~17% CAGR

Investor Day - June 25, 2014 112 The Optical Industry Solid Growth Potential Driven by Demographics, Ageing, Urbanization and Lifestyle

2013 Volume CAGR 2020

Worldwide Population 7.0 1.0% 7.6 Demography (in billions of people) Urban Population 3.7 4.3% 5.0

Correction Needs 4.3 2.2% 5.0 Vision Industry (in billions of people) Correction Wearers 1.8 3.0% 2.2

Myopia 1.6 3.2% 2.0 Visual Impairments (in billions of people) 2.0 2.3% 2.3

Cataracts 250m 3.6% 320m Visual Health (in millions of people) AMD* 100m 2.6% 120m

* Age-related Macular Degeneration Source: Essilor estimates, Worldbank, United Nation, CIA, World Population Prospects, Epidemiological and Marketing studies

Investor Day - June 25, 2014 114 Presbyopia and Myopia: Two Segments with Structural Growth

In millions of people

Europe North America

361m 340m 272m 141m 153m 157m 248m Asia-Pacific* 134m

1,274m 1,178m 2013 2020 2013 2020 2013 2020 2013 2020 993m 996m Presbyopia Myopia Presbyopia Myopia

Africa-Middle East Latin America

188m 155m 150m 195m 241m 115m 117m 168m 2013 2020 2013 2020 Presbyopia Myopia 2013 2020 2013 2020 2013 2020 2013 2020 Presbyopia Myopia Presbyopia Myopia

Source: Essilor estimates, Worldbank * Including Russia

Investor Day - June 25, 2014 115 Eye Glasses Account for 86% of Vision Correction in the World

REFRACTIVE SURGERY  6%

CONTACT LENSES  6-7%  Does not cure or sufficiently treat presbyopia  Insufficient for people with presbyopia

4% PRESCRIPTION 10% LENSES  3+%

READING GLASSES  4%

SINGLE VISION LENSES:  Suitable for near vision 11%  One optical power per lens  Suitable for people with myopia,  Offer clearer vision to people hyperopia or astigmatism with presbyopia  Insufficient for people with presbyopia

BIFOCAL LENSES:  Two optical powers per lens  Suitable for people with presbyopia 75% PROGRESSIVE LENSES:  Seamless gradients of optical powers from distant to near vision Weight in value  Suitable for people with presbyopia Volume CAGR Source: Essilor estimates

Investor Day - June 25, 2014 116 Photochromic and Sun Growing Twice as Fast as the Optical Industry…

400

300 CAGR c.7% CAGR 5-7% 200

100 CAGR 3+%

0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Base100 in 2000 / Source: Essilor estimates

Optical volume Sun volume Photochromic volume

Investor Day - June 25, 2014 117 Strong Regional Differences in Penetration of Value-added Lenses

Progressive lenses Anti-reflective lenses Thin lenses (index>=1.6)

100% 62% 49%

57% 60% 30% 32% 39% 15% 13% 26% 15% 16% 8% 5% 3% 2% 4%

China Italy WW USA France New India USA WW Spain Japan Brazil Czech. USA WW China Korea Zealand Rep.

Photochromic lenses Prescription sun lenses* Polarized lenses

27% 30% 7.2%

18% 19% 20% 4.0% 10% 10% 2.2% 7% 7% 7% 1.7% 2.0% 2.0% 1% 0%

Japan France WW India USA South India USA WW Brazil France Korea Germany Singap. WW Switz. Australia USA Africa

Penetration of total lens industry in volume in 2013 / Source: Essilor estimates * Excluding polarized lenses

Investor Day - June 25, 2014 118 Fast-Growing and Mid-tier Offer Strong Volume Growth

Fast- Developed Growing Markets High-end  ~2.5% 120 Markets 35

+1-2% +6-8% Mid-tier 80 125  >5%

Entry 20 190  ~6%

570 million consumers per annum

Growing globally at 3+% Volume CAGR Source: Essilor estimates

Investor Day - June 25, 2014 119 China is the Largest Optical Industry in Volume, the US is the Largest in Value

Expected growth in value (CAGR 2013-2018, in %)

20

Size proportional to 2013 volume India

9 MPc Russia

15 China

Colombia Turkey Kenya

Ghana Kazakhstan

Egypt 10 Ethiopia Morocco Costa Rica Chile Saudi Arabia Brazil Dom Rep. Nigeria UAE Mexico South Africa USA 5 Serbia Canada Croatia Finland Argentina UK Ireland Taiwan Norway France

Denmark Netherlands Switzerland Germany Spain Japan 0

0,2 0,5 1 2 5 10 20 50 100 200

Source: Essilor estimates, Estin & Co. Volume in 2013 (millions of lenses)

Investor Day - June 25, 2014 120 Strong Regional Differences in Replacement Rate of Spectacle Lenses…

In number of years

Japan 4.1 France 3.0 USA 1.9 2.8 China 2.9 India

Brazil

2.9

4.2 South Africa 1.6 Australia More than 4 years Between 3 and 4 years Between 2 and 3 years Between 1 and 2 years Source: Essilor estimates

Investor Day - June 25, 2014 121 … as Well as in Optical Retail Penetration

# inhabitants per optical retail outlet

Europe Asia-Pacific 10,700 Fast-Growing Markets* 29,350

North America 6,650 Asia-pacific Developed Markets 10,700

Africa-Middle East 55,000 Latin America 13,300

5,000 to 15,000 16,000 to 30,000 More than 30,000

* Including Russia / Source: Essilor estimates

Investor Day - June 25, 2014 122 Fast-Growing Markets Rapidly Emerging Middle Class With Significant Purchasing Power Creates Outstanding Opportunities…

In billions of inhabitants 9

8 High income

7

6 Middle-class 5

4

3

2 Low income 1

0 2010 2020 2030

Source: United Nations

Investor Day - June 25, 2014 124 …Both In Volume and Value

Volume growth potential Value growth potential

Spectacle lenses per person with correction need (2012) Price to consumer (log $)

UK Size proportional to 1.0 1,0 USA the population with correction need Canada 30 M

France Australia Geography with 0,80.8 Austria strong market growth Germany Netherlands in value (CAGR 2012- Argentina Finland Hong-Kong 2017 > 5%) Belgium 0.6 Italy Sweden 0,6 Switzerland Turkey Taiwan Slovenia Ireland Slovakia SpainDK Brazil Poland NZ China Portugal 0,40.4 Czech Japan Russia Egypt Mexico Hungary 0,20.2 S. Africa GDP per capita India (in PPP USD, 2012) GDP per capita (log $) 0,00 0 1000010,000 2000020,000 3000030,000 4000040,000 50,00050000 60,00060000 $2,000 $20,000 $100,000 Fast-Growing Markets Developed Markets Fast-Growing Markets Developed Markets

 Fast-Growing Markets per capita GDP: +8% per year  Middle class: from 26% (2012) to 59% (2030) of worldwide population

Source: Worldbank, Essilor estimate, Estin & Co.

Investor Day - June 25, 2014 125 Essilor’s Organization is Geared to Deliver High Growth...

2010 2011 2012 2013

Growth ex. currency*  22.0%  25.6%  27.3%  20.3% Moscow

Shanghai

Dubai

Bangalore

Singapore Brazil

Regional hubs Headquarters AMERA: Asia, Middle East, Russia, Africa

Investor Day - June 25, 2014 126 Expanding Through a Proven Partnership Strategy...

45 acquisitions or partnerships completed since January 1, 2011

750-1,000 players

Optik Mekk

MOC Opak Seeworld Onbitt L’N Optic Ipek Optik Isbir Optik Youli Incheon Optics Optiben Optiplas SIVO Xiamen Tianhong LATIN Nemkul Yarui Crystal y Plástico Optical Trend Optical AMERICA Movisia Enterprise Opti Express VST Lab Ophthalmics Optics India Shih Heng PSA Nilo Deepak Optic AAiJoke’s JWL Phuket Lab Centralab GKB Hi-Tech Unilab Servi Optica Optiminas Global Vision Polycore Comprol CM Cientifica Equipamentos Ópticos de Precisão AMERA Comopticos Riachuelo Evolution Optical Orgalent Repro Megalux Plants Transitions Optovision Prescription Labs & Wholesalers Readers and Sunglasses Equipment 450-600 players

Players: Prescription laboratories, manufacturers, wholesalers, etc.

Investor Day - June 25, 2014 127 ...To Be Rolled Out in New and Significant Territories

Uncovered markets

Almost 2 billion inhabitants yet to cover

Uzbekistan

Syria Irak Afghanistan

Algeria Pakistan Egypt Iran Soudan Yémen Bangladesh

Nigeria Ethiopie Venezuela Ghana Uganda Congo Tanzanie Peru

Mozambique Madagascar

3 countries over 150m inhabitants 9 countries over 50m inhabitants 21 countries over 20m inhabitants Countries with no direct presence

Investor Day - June 25, 2014 128 Additional Growth Engines Shaping the Way to a Significant Increase in Sales by 2018

>20% CAGR >27% CAGR • Photochromic

• Media push • New countries  • 2.5 NVG  • Equipment • Sun & Readers  • Internet

2009 2012 2015e 2018 Ambition €360m €911m >€1,500m €2,800m 249

21% 2013

Investor Day - June 25, 2014 129 A Unique Strategy for Total Chinese Market Coverage

CITIES

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

High

Mid-high

MARKET

Mid-low

Low

Combining organic growth and key partnerships

Investor Day - June 25, 2014 130 Innovation at Every Market Segment in China

CITIES

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

High

Mid-high

MARKET

Mid-low

WHITE LABELS Low Upgrade from low index

Innovation creates value at each price point

Investor Day - June 25, 2014 131 Value Creation in Brazil Through Segmentation

Segmentation by Population Tiers Class A: 10m; Class B: 65m

Premium AB X1.5 in 10 years

Mid-Tier C + 20 M of people

Class C: 102m

Entry No Name D/E no Line Class D/E: 23m GBO and ILT Brazil 2013 200m People

Investor Day - June 25, 2014 132 Corporate Mission “Improve Lives by Improving Sight” 2.5 Billion People in the World Still Need Eye Correction

7 billion people in the world

4.3 billion people (60%) require vision correction

1.8 2.5 billion billion

Corrected Uncorrected

North America Europe Asia 50 130 1,600 170 550

Latam Africa

In millions of people

Investor Day - June 25, 2014 134 Poor Vision is the World’s Largest Handicap

Children Workers Elderly Drivers

810 1,100 300 280 million million million million Uncorrected Uncorrected Uncorrected Uncorrected

 $275 billion Global economic productivity loss due to poor vision

Source: World Health Organization, BCG

Investor Day - June 25, 2014 135 Essilor Is Committed to Reversing the Trend

Ambition of 50 million new wearers per year by 2020

# non-corrected (in billion of people) 3.2

Before 2.6

2.6 2.5 -10% - 54%

2.4 After 2.4

1.5

0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2050

Investor Day - June 25, 2014 136 A Unique Governance System to Increase Impact and Gain New Customers

Essilor’s Mission: Improve lives by improving sight

Executive Committee Board of Directors

Creation of the Position of Creation of a Corporate Social Chief Corporate Mission Officer Responsibility Committee

Investor Day - June 25, 2014 137 Four Areas of Action

BOP Innovation Lab

Investor Day - June 25, 2014 138 Awareness: Educate Consumers and Drive Policy Change

 Non-profit association funded by Essilor

 Collects and publishes valuable data and research on vision economics

 Calls for action by stakeholders, policy makers, eye care professionals and media

Investor Day - June 25, 2014 139 : An Independent Advisory Board

Pr Kevin Frick Dr. Clare Gilbert Mr. Arun Bharat Exc. Wu Jianmin PR Kovin

Ram Former China Naïdoo Professor Ophthalmologist President Ambassador to the & Vice Dean Professor at the PhD, OD MPH SRF Ltd United Nations in Johns Hopkins London School of Optometrist Geneva Carey Business Hygiene and BHVI Global India School Tropical Medicine China Program Director Baltimore UK USA South Africa

Investor Day - June 25, 2014 140 Inclusive Business: Innovating to Bring Vision Care to the Last Mile

India Eye Mitra & Refraction Vans

China Presbyopes & Children

Brazil Enterprise & Urban Poor

Investor Day - June 25, 2014 141 Inclusive Business: Leveraging Essilor’s Capabilities to Facilitate On-the-Spot Dispensing

‘Ready to Clip’ lenses  Quick: <5min dispensing time  Affordable  Similar comfort and satisfaction as custom-fitted lenses  Low stock lens inventory with no machinery required

Reading Glasses Leadership

Investor Day - June 25, 2014 142 Inclusive Business: a Growing Global Presence

China Mexico (2012) (2014) Brazil India (2013) (2011) Gambia (2014) Indonesia (2014)

Investor Day - June 25, 2014 143 Philanthropy: Serving Those Most in Need

2014

2013

2008

Investor Day - June 25, 2014 144 Sustainability and SRI: a Longstanding Track Record as a Responsible Corporate Citizen

 Signatory to the Global Compact since 2003

 The only industry player to be ranked in the major CSR and SRI indices

 Ranked one of the Most Sustainable Corporations in the World for 2nd year running

Investor Day - June 25, 2014 145

Investor Relations Contact For further information, please contact:

Investor Relations

Sébastien Leroy Véronique Gillet Ariel Bauer

Financial Communications Senior Vice President, Investor Relations Director Manager Investor Relations – Asia Pacific

France France Singapore

 Tel: +33 (0)1 49 77 42 16  E-mail: [email protected]  Headquarters: 147 rue de Paris - 94220 Charenton-le-Pont - France  Website: www.essilor.com

------Disclaimer  This presentation contains forward-looking statements that can be identified by terminology such as “potential,” “expected,” “will,” “planned,” “anticipate” or the negative of these terms or similar expressions. Such forward-looking statements reflect the current views of the Group regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. For a detailed description of these factors and uncertainties, please refer to the section “Risk Factors” in our Registration Document (which is available on www.essilor.com). Accordingly, readers of this presentation are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this presentation. Essilor undertakes no obligation to publicly update or revise any of these forward-looking statements.  This presentation includes information relative to our markets and our competitive positions. Such information is based on market data and our actual revenues in those markets for the relevant periods. We obtained this market information from various third party sources (industry publications, surveys and forecasts) and our own internal estimates.

Investor Day - June 25, 2014