2010 Results

Paris - March 2, 2011 > Highlights of 2010

> Financial results

> Strategy and outlook

2010 Results 2 2010: A Year of Acceleration

Highlights of 2010

Revenue of €3,892m, up 19.1%

Operating profit up 18.9% to €705m, 18.1% margin

Free cash flow of €480m, up 23%

2010 Results 3 Growth Strategy Pursued

Highlights of 2010

Product strategy 240 new products

Mid-range segment New local brands and multi-networks

Geographic expansion China, Latin America, India

Bolt-on acquisitions €155m in 2010 vs €117m in 2009

Strategic acquisitions FGXI and Signet Armorlite

2010 Results 4 Core Business Enjoys Strong Economics

Highlights of 2010

Positive contribution from trading-up

No margin dilution despite greater mid-range focus, thanks to different cost structure

Higher volumes drive production gains

Efficiency of our export labs strategy

2010 Results 5 A Year of Acceleration and Reinforcement

Highlights of 2010

Strong optical market fundamentals

Reinforced market positions to fuel long-term profitable growth

Strengthened organization and teams

Financial resources to seize all profitable opportunities

2010 Results 6 > Highlights of 2010

> Financial results

> Strategy and outlook

2010 Results 7 Fastest Growth in 15 years: 13.4% at Constant Exchange Rates Financial Results

187 In € millions 51

187 +1.6% +5.7% 101 98 +5.7% +3.0% +3.1%

+6.1% 3,892

+19.1% 3,268 +13.4% at constant exchange rates

2009 Organic Bolt-on FGXI Signet Currency 2010 growth acquisitions Armorlite effect

2010 Results 8 Gradual Improvement in Organic Growth Continued in the Fourth Quarter Financial Results

In %

4.0

3.4 4.4

3.0 3.7 2.9 3.9 2.9 6.2 5.4 2.3 4.6 3.6 2.2 2.7 2.9 3.0 2.2 3.2 2.5 1.5

-0.4 -1.0 0.1

08 08 08 08 09 09 09 09 10 10 10 10 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 1 2 3 4 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Q Q Q Q

Organic Growth Bolt-on Acquisitions

2010 Results 9 Bolt-on Acquisitions: 27 Transactions, Contributing €155m in Full-Year Revenue Financial Results

Canada 2 Europe 2 United States 9 Africa Middle East Asia 2 6

Latin America 4 Oceania 1

Equipment 1

2010 Results 10 North America: Up 3.5%

Financial Results

In €m +3.5% +3.5% 39% +11.1%

Good second half in the United 1,516 1,253 1,354 States • Varilux, Crizal and Xperio • Growth in progressive • Independent ECP made strong gains 2008 2009 2010 Canada: still fragile Reported revenue in €m Signet Armorlite being integrated Growth excluding currency effect and strategic acquisitions

2010 Results 11 Europe: Up 2.3%

Financial Results

In €m +2.3% +4.8% -0.5% 36%

Solid performance in France 1,356 1,332 1,402 , Spain and Ireland still weakened by a tough economy Upturn in Poland and very strong growth in Russia 4th quarter impacted by unfavorable 2008 2009 2010 weather conditions and slower growth in instrument sales Reported revenue in €m Large accounts and mid-range Growth excluding currency effect and strategic acquisitions

2010 Results 12 Latin America: Up 22.6%

Financial Results

5% In €m

+22.6%

+17.6% +8.3% Strong demand throughout the year 194

• Crizal / Varilux / Transitions 127 134 • Growth in the mid-range Deployment of the strategy 200820092010 • New partnerships in

• Anti-reflective coating centers Reported revenue in €m Growth excluding currency effect and strategic Signet/Kodak in Colombia acquisitions

2010 Results 13 Asia-Oceania/Middle East-Africa: Up 15.1%

Financial Results

In €m 12% +15.1%

+12.8% +11.8%

450 Improvement in the developed 345 markets in the 2nd half 302 (up 8.2% over the full year)

Very sustained demand in the 200820092010 fast growing countries Reported revenue in €m Growth excluding currency effect and strategic acquisitions

2010 Results 14 Constant currency Revenue Up 22% in Fast Growing Markets Financial Results

12% Russia +29.3%

China +28.6%

India +23.7% Africa Middle East +24.6% ASEAN Latin America +24.2% +22.6%

*Fast growing markets include China, India, ASEAN, HK, , Africa, the Middle East, Russia and Latin America, ILT & OSA

2010 Results 15 Equipment*: Up 38%

Financial Results

4% In €m

+38%

-7%

Business has returned to pre- 143 recession levels 104 Fast growth in sales of digital surfacing equipment 36

Partnership with DAC Vision 200820092010

* External sales by Satisloh, Delamare and Dac Vision Reported revenue in €m Growth excluding currency effect and strategic acquisitions

2010 Results 16 Readers focus: Revenue Up 6.9% in Dollars over the Full Year Financial Results

5% In $m +6.9% 277

Solid 6.9% growth in revenue Of which $247m (€187m) in revenue

Successful new products

2010 International expansion

2010 Results 17 Net Profit up 18.2%

Financial Results

In € millions 2009* 2010 % change

Revenue 3,268 3,892 +19.1%

Contribution from operations** 593 705 +18.9% % of revenue 18.1% 18.1%

Operating profit 550 618 +12.4%

Profit attributable to equity holders 391 462 +18.2%

% of revenue 11.9% 11.9%

Earnings per share (in €) 1.89 2.20 +16.6%

* 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.

2010 Results 18 Exceptional Items within Operating Profit

Financial Results

In € millions 2009 2010 % change

Contribution from operations 593.0 704.8 +18.9%

Restructuring/reorganization (11.4) (37.9)

BKA provision (3.9) (41.5)

Sperian disposal -- 27.1

Strategic acquisition costs (3.5) (6.5)

Other income/(expense), net (24.1) (27.5)

Operating profit 550.1 618.5 +12.4%

2010 Results 19 Improved Contribution from Core Business

Financial Results Operating leverage on Bolt-on 2009 business base acquisitions % of revenue +0.5 18.6% -0.5 18.1% 18.1%

2009 2010 2010 Adjusted Before bolt-on reported for and strategic IFRS 3R acquisitions

2010 Results 20 Positive Impact from Strategic Acquisitions

Financial Results Dec. 2010 excl. Dec. strategic Strategic In € millions 2009* acquisitions acquisitions Dec. 2010

Revenue 3,268 3,652 240*** 3,892

Contribution from operations** 593 663 42 705 % of revenue 18.1% 18.1% 18.1%

Operating profit 550 580 39 619

Profit attributable to equity 391 441 21 462 shareholders % of revenue 11.9% 12.1% 11.9%

Earnings per share (in €) 1.89 2.10 2.20

* 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. *** Including inter-company revenue

2010 Results 21 Highlights of 2010

Financial Results

Positive contribution from FGXI and Signet

Tangible improvement in Core Business performance

Strong contribution from associates

Laboratory capacity adjusted in the US and Europe

Launch of two Innovation and Technology Center projects in Dallas (US) and Créteil (France)

2010 Results 22 Optimized Capex and Increased Global Production Capacity Financial Results

9% 224 8% 174 192

7% 7.7% 183 7.2% 7.1% 6%

5% 5.9% 124 4% 116

3% 3.5% 3.2% 2%

1%

0% 2005 2006 2007 2008 2009 2010

Capital expenditure net of disposals in € millions and in % of revenue

2010 Results 23 Free Cash Flow Up 23%

Financial Results 1400 1400 57 WCR

1200 1200 140 Capex

Dividends Operating cash flow 148 1000 676 1000 (excl. WCR) +480

800 800

645 Net financial Capital increase 600 77 600 investments* Other** 64 Sperian disposal 133 400 400

Reported change 200 389 200 in net debt 349 Share buybacks

0 0 1 1 * Including €107m in acquired debt ** Including the change in the cross-currency swap 2010 Results 24 Robust Balance Sheet to Finance Growth

Financial Results

In € millions 3,044 2,735

2,366 2,168 1,892 1,676

0.36 x EBITDA

296 112 - 54 - 210 - 260 - 93

2005 2006 2007 2008 2009* 2010

Net debt Equity

* Adjusted for acquisition-related costs in accordance with IFRS 3R

2010 Results 25 Reduction in Shares Outstanding over the Year

Financial Results

In millions of shares

Shares outstanding at year-end 2009 210.9

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 3.0 On vesting of performance shares and exercise of stock options 1.1 On conversion of OCEANE bonds 1.9

Share buybacks -7.6

Shares outstanding at year-end 2010 208.8

2010 Results 26 Dividend Per Share Up 18.6%

Financial Results

0.83*

0.70 0.66 0.62 0.55 0.47

173 148 129 137 113 96

2005 2006 2007 2008 2009 2010

Total payout (€m) Dividend per share (€) * Submitted to shareholder approval at the May 5, 2011 Annual Meeting

2010 Results 27 > Highlights of 2010

> Financial results

> Strategy and outlook

2010 Results 28 The Optical Market in 2011

Strategy and Outlook

A still significantly under-penetrated market A high ramp-up potential A growing, profitable mid-range segment A highly fragmented industry

2010 Results 29 2010 Results 30 The Optical Market in 2011

Strategy and Outlook

A still significantly under-penetrated market A high ramp-up potential A growing, profitable mid-range segment A highly fragmented industry

Acceleration driven by fast growing markets

2010 Results 31 Acceleration Driven by Fast Growing Markets…

Strategy and Outlook

Expected GDP Growth 2010-2016 (in volume, constant price in %, IMF) 12

10 China

India 8

Mexico 6 Brazil GDP growth = 5% 4

USA 2 France UK

Germany Spain 0 0 10,000 20,000 30,000 40,000 50,000 60,000

GDP per Capita (in USD) Source: Essilor, Estin & Co.

2010 Results 32 …With the Fastest Volume Growth…

Strategy and Outlook Volume growth

Lenses 0,7 per capita UK USA 0,6 France Hong-KongHong -Kong Canada SingaporeSingapore Ireland 0,5

Germany Finland Austria 0,4 Australia Netherlands Sweden Belgium SpainSpain Switzerland Argentina Italy 0,3 Slovenia Taiwan Brazil Slovakia Japan Hungary 0,2 Croatia Czech Rep Turkey Poland South Africa Russia 0,1 ChinaChina IndonesiaEgypt India Indonesia IndiaPhilippines GDP per capita 0,0 Source: Essilor, Estin & Co. (in USD) 0 10,000 20,000 30,000 40,000 50,000

NumberNumber ofof lenseslenses soldsold linkedlinked toto GDPGDP perper capitacapita

2010 Results 33 …And the Greatest Potential for Average Prices to Increase Strategy and Outlook Value growth Average price to end consumer per spectacle 200 (logarithmic scale, in €)

100 France Germany USA UK 50 Brazil Spain

Hong-Kong 20 Mexico

10

Indonesia 5 China GDP per capita India (logarithmic scale, in USD) 2 Source: Essilor, Estin & Co. 2,000 5,000 10,000 20,000 50,000

AverageAverage sellingselling priceprice alsoalso linkedlinked toto GDPGDP perper capitacapita

2010 Results 34 Our Priorities for 2011

Strategy and Outlook

Significantly increase exposure to fast growing markets

Capture full growth potential of developed markets

Continue to strengthen worldwide positions in the mid- range market

Leverage Equipment and Instruments division

Accelerate worldwide development of FGXI

2010 Results 35 Significantly Increase Exposure to Fast Growing Markets Strategy and Outlook

Expected market growth in value (CAGR 2010-2015, in %) 20 Size proportional to market India volume 2010 Leverage all Essilor’s 9 MPc Indonesia know-how 15 Russia China

Kazakhstan Ghana Implement through a Kenya dedicated organization 10 Malaysia Serbia Brazil Accelerate acquisitions Chile Thailand Costa Rica Saudi Arabia Mexico South Africa 5 Canada Slovenia Singapore USA France AdaptAdapt businessbusiness modelmodel Portugal Netherlands toto eacheach countrycountry Japan 0

0,2 0,5 1 2 5 10 20 50 100 200 Market volume in 2010 (millions of lenses)

Source: Essilor, Estin & Co.

2010 Results 36 2010 Results 37 2010 Results 38 2010 Results 39 Our Priorities for 2011

Strategy and Outlook

Significantly increase exposure to fast growing markets

Capture full growth potential of developed markets

Continue to strengthen worldwide positions in the mid- range market

Leverage Equipment and Instruments division

Accelerate worldwide development of FGXI

2010 Results 40 Capture Full Growth Potential of Developed Markets Strategy and Outlook Japan 98% Germany Canada 78% Innovation at the France Canada Spain USA 34% 29% France 26% 55% heart of our strategy 25% USA 41% Italy 35% 11% Stimulate demand Growth potential Growth Growth potential Growth for premium Progressive lenses Anti-reflective lenses products

USA Develop customer Australia USA 7% solutions & services 20% 18% France Canada Germany Italy 11% 3% Japan Spain France 7% 2% 1% 0,5% Growth potential Growth Growth potential Growth 1% Photochromic lenses Polarized lenses

Essilor’sEssilor’s growthgrowth potentialpotential isis asas strongstrong inin developeddeveloped countriescountries asas inin fastfast growinggrowing countriescountries

2010 Results 41 2010 Results 42 2010 Results 43 2010 Results 44 2010 Results 45 Our Priorities for 2011

Strategy and Outlook

Significantly increase exposure to fast growing markets

Capture full growth potential of developed Markets

Continue to strengthen worldwide positions in the mid- range market

Leverage Equipment and Instruments division

Accelerate worldwide development of FGXI

2010 Results 46 Continue to Strengthen Worldwide Positions in the Mid-Range Market Strategy and Outlook

Bolt-on acquisitions Multi networks 150 / 200 All geographies

CapitalizeCapitalize onon exportexport labslabs andand AsianAsian acquisitionsacquisitions toto growgrow profitablyprofitably inin thethe mid-rangemid-range marketmarket

2010 Results 47 2010 Results 48 2010 Results 49 Our Priorities for 2011

Strategy and Outlook

Significantly increase exposure to fast growing markets

Capture full growth potential of developed Markets

Continue to strengthen worldwide positions in the mid- range market

Leverage Equipment & Instruments division

Accelerate worldwide development of FGXI

2010 Results 50 Leverage Equipment & Instruments Division

Strategy and Outlook

Surfacing Consumables Coating Edgers

Continue to deploy worldwide distribution Facilitate the penetration of premium lenses Support growth of fast growing markets

StrengthenStrengthen Essilor’sEssilor’s positionspositions worldwideworldwide

2010 Results 51 Complete Solutions for Prescription Labs

Strategy and Outlook

ARAR CoatingCoating FinishingFinishing CleaningCleaning

Coated & Edged Coated & Edged HardHard CoatingCoating LensLens

Consumables & Tools for Consumables & Tools for CleaningCleaning allall ProcessProcess StepsSteps

Rx Calculation Software Deblocking JobJob ManagementManagement Deblocking

All-Format Lab- Protecting Polishing Server Software Protecting Polishing

All-FormatAll-Format Blocking Blocking GeneratingGenerating

2010 Results 52 Our Priorities for 2011

Strategy and Outlook

Significantly increase exposure to fast growing markets

Capture full growth potential of developed Markets

Continue to strengthen worldwide positions in the mid- range market

Leverage Equipment & Instruments division

Accelerate worldwide development of FGXI

2010 Results 53 Accelerate Worldwide Development of FGXI

Strategy and Outlook

Acquisitions ls ne Leverage Essilor’s strengths an Ch lt s Extend product lines A ical Opt s Store ment epart D al 2015 Internation

$480-520$480-520 Million Sales 2010

$277 Million Sales

AA growthgrowth driverdriver forfor EssilorEssilor andand thethe opticaloptical marketmarket

2010 Results 54 2010 Results 55 A Corporate Culture to Support our Growth Strategy

Strategy and Outlook

Trading-up Conquering Acquisitions Expanding through the mid- the market innovation range segment

Operational efficiency

2010 Results 56 Continue to Develop Export Prescription Labs

Strategy and Outlook

China

India Thailand Mexico

StrategyStrategy combiningcombining premiumpremium serviceservice andand efficiencyefficiency

2010 Results 57 2010 Results 58 A Corporate Culture to Support our Growth Strategy

Strategy and Outlook

Trading-up Conquering Acquisitions Expanding through the mid- the market innovation range segment

Operational efficiency

Corporate and social responsibility

2010 Results 59 Strengthened Commitment to Corporate Responsibility Strategy and Outlook

Our convictions: A recognized commitment: • Strong management systems: Quality, Environment, Health & Safety • Employee shareholding reinforces our culture • Pledged to support UN Global Compact • Essilor Vision Foundation “Better Life through Better Sight”

DeploymentDeployment ofof «« EssilorEssilor PrinciplesPrinciples »» toto supportsupport sustainablesustainable growthgrowth

2010 Results 60 2010 Results 61 2010 Results 62 2010 Results 63 2011 Outlook

Strategy and Outlook

Revenue growth of 6% to 8% (including organic and bolt-on acquisitions)

Maintain current high level of profitability (excluding strategic acquisitions)

2010 Results 64 2010 Results 65