Essilor Continues to Expand in a Robust Market

  Essilor Continues to Expand in a Robust Market

  *Third quarter performance in line with the second quarter, excluding
    calendar effects
  *Robust growth in emerging markets
  *Strong start for the Varilux^® S series
  *2012 guidance confirmed

Business Wire

CHARENTON-LE-PONT, France -- October 25, 2012


Essilor International (Paris:EI), the world leader in ophthalmic optics, today
announced that consolidated revenue for the nine months ended September 30,
2012 totaled €3,759.1 million. This represented a year-on-year increase,
before the currency effect, of 15.9%, exceeding the 12 to 15% growth target
set at the beginning of the year.

Nine-month consolidated revenue up 5.8% like-for-like

               2012      2011                   % Change          Contribution
€ millions    (9       (9       % Change                     from
               months)   months)   (reported)   (like-for-like)
Lenses and
optical       3,354.3  2,816.4  + 19.1%     + 6.0%           + 8.0%
North         1,344.0  1,140.1  + 17.9%     + 4.6%           + 3.4%
Europe        1,168.6  1,089.2  + 7.3%      + 3.2%           + 3.3%
Asia-Pacific  618.9    401.4    + 54.2%     + 14.3%          + 31.6%
& Africa^a
Latin         222.8    185.7    + 20.0%     + 12.7%          + 13.0%
Equipment     143.6    131.9    + 8.9%      + 1.3%           + 0.7%
Readers       261.2    151.1    + 72.9%     + 5.7%           + 57.7%
TOTAL         3,759.1  3,099.4  + 21.3%     + 5.8%           + 10.1%

^a The change in consolidation method applied to Nikon-Essilor and Essilor
Korea, which were fully consolidated as of January 1 and February 1, 2012,
respectively, added €77.7 million to nine-month revenue, thereby accounting
for 19.6% of the growth in Asia-Pacific & Africa revenue and 2.5% of the
growth in consolidated revenue.

Commenting on this performance, Hubert Sagnières, Chairman and Chief Executive
Officer, said: “Essilor continues to implement its strategy of innovation in
every market in response to the demand for better visual health. Following in
the tracks of Optifog™, and Crizal^® UV early in the year, the new Varilux^® S
series progressive lens is being steadily deployed by our teams, country by
country. The third quarter performance is a further illustration of our
ability to diligently execute our action plans around the world and we remain
confident in achieving our objectives for 2012.”

The 5.8% organic growth reflected the strong momentum in the Lenses and
Optical Instruments business, led by new products and fast growing demand, as
well as the solid performance by the Readers division.

Newly acquired companies increased revenue for the period by 10.1%, with
bolt-on acquisitions^1 accounting for 2.7% of the gain and the 2011 strategic
acquisitions of Shamir Optical and Stylemark representing 4.9%.

The remaining 2.5% improvement was attributable to the Nikon-Essilor and
Essilor Korea joint ventures, which are now fully consolidated instead of 50%
as previously.

Lastly, the 5.4% positive currency effect was mainly due to the rise against
the euro in the US dollar and, to a lesser extent, the Canadian dollar, the
Chinese yuan and the Australian dollar which more than offset the impact of
the decline in the Brazilian real.

Third-quarter consolidated revenue up 4.0% like-for-like

Compared with the prior-year period, third-quarter 2012 revenue was impacted
by two calendar effects:

  *The fewer number of billing days, whose impact was particularly material
    in the United States and Canada, as well as to a lesser extent in Europe,
    Brazil and Australia.
  *The schedule for fulfilling a contract to supply a one-hour
    anti-reflective lens technology to North-American optical chain

Excluding these effects, the third quarter performance was in line with the
second quarter.

                                                % Change          Contribution
€ millions    Q3 2012  Q3 2011  % Change                     from
                                   (reported)   (like-for-like)
Lenses and
optical       1,105.1  952.0    + 16.1%     + 3.8%           + 5.6%
North         446.2    382.3    + 16.7%     + 1.0%           + 2.7%
Europe        370.9    356.1    + 4.2%      + 2.3%           + 0.5%
Asia-Pacific  210.7    143.7    + 46.6%     + 11.5%          + 25.0%
& Africa^a
Latin         77.3     69.9     + 10.6%     + 10.6%          + 7.6%
Equipment     48.0     42.4     + 13.1%     + 3.4%           + 0.4%
Readers       75.5     44.9     + 68.3%     + 8.5%           + 46.3%
TOTAL         1,228.6  1,039.3  + 18.2%     + 4.0 %          + 7.1%

^a The change in consolidation method applied to Nikon-Essilor and Essilor
Korea, which were fully consolidated as of January 1 and February 1, 2012,
respectively, added €27.3 million to third-quarter revenue, thereby accounting
for 19.2% of the growth in Asia-Pacific & Africa revenue and 2.6% of the
growth in consolidated revenue.

In the third quarter, consolidated revenue rose by 4.0% like-for-like.The 7.1%
contribution from acquisitions comprised a 2.5% gain from bolt-on
acquisitions^1 and a 2.0% increase from the consolidation of Stylemark. The
rest came from the joint-ventures that are now fully consolidated, as opposed
to 50% in the third quarter of 2011.

The currency effect, which added 7.1% to reported growth, primarily reflected
the increase in the US dollar against the euro.

^1 Acquisitions or local partnerships

Performance by region and by division

During the period, Essilor pursued its growth strategy in the still very fast
growing ophthalmic optics market, with:

  *Robust growth in developed markets.
  *Strong expansion in emerging markets.
  *Highly successful new products, including the Varilux^® S series launched
    during the quarter.

Demand remains brisk in North America. In the United States, sales to
independent eyecare professionals are still being driven by anti-reflective
lenses, including Crizal^® UV. Sales to independent laboratories were
particularly sustained over the period.

Growth was firm in Europe, with the exception of selected markets in Southern
Europe, notably Italy and Portugal, and the Instruments division. Since its
launch in early September, the Varilux^®S series, the new-generation
progressive lens, has been very successful, especially in France and
Switzerland. The Varilux^®S series won the gold medal at the SILMO
international optics show in Paris.

In the Asia-Pacific & Africa region, all of the fast-growing markets, led by
China and India, maintained their strong expansion. Business with the optical
chains slowed in Australia but sales to independent eyecare professionals are
still trending upwards. Growth in Japan remained firm despite the expected
changes in the competitive environment.

In Latin America, demand continued to rise in Brazil and especially Mexico,
where revenue growth is being driven by volume gains and an improving sales
mix. The deteriorating economic environment weighed on revenue in Argentina.

The Equipment division continued to hold revenue firm at a high level. Demand
for digital surfacing machines was strong in both North and South America,
while the consumables segment continues to enjoy sustained growth.

During the quarter, Satisloh opened a facility in China, comprising a sales
and customer service office and a logistics center. Located in Danyang,
Jiangsu where the country’s largest ophthalmic lens producers are based, the
center will enable Satisloh to broaden its range of solutions for fast growing
local optical companies.

Lastly, the Readers division had a very good quarter, thanks to the ramp-up of
a major contract with a leading US retail chain, strong demand in the
sunglasses segment and the fast growth in international sales, particularly in
Latin America.

Significant third-quarter events and other transactions

Since the beginning of the second half, Essilor has completed eight new
transactions as part of its ongoing bolt-on acquisitions^2 strategy, which is
extending local coverage and bringing innovations to more markets more

In addition to the already announced transactions with Riachuelo in Brazil and
Optovision in Argentina, in the third quarter Essilor acquired Balester
Optical, a US-based prescription laboratory with $13.7 million in revenue.

Acquisitions since October 1

Five new acquisitions have been completed since the beginning of October.

Two new partnerships were formed in the United States with prescription
laboratories Hirsch Optical (New York, with $8.3 million in revenue) and
Carskadden Optical Company (Ohio, with $1.7 million in revenue).

A third transaction was carried out in Morocco, where Essilor has agreed to
acquire a majority stake in Movisia, the exclusive distributor for Nikon and
Kodak brand lenses. Based in Casablanca, Movisia has almost €1 million in

In South Africa, a majority interest was acquired in Evolution Optical, a
prescription laboratory with revenue of €1.2 million formed by the merger of
Uniti Optical and Progress Optical, based respectively in Cape Town and
Johannesburg. Evolution Optical is now an exclusive agent for BBGR lenses in
this market of 50 million people, only 20% of whom have corrective eyewear.

Lastly, Essilor has entered the Sri Lankan market by acquiring a controlling
interest in Global Vision, a prescription laboratory and distributor with
around €1 million in revenue. As a result, the Company will be able to promote
its technologies and brands in a market with 20 million inhabitants.

In addition, the Company completed the acquisition of Opak in Turkey.

Since the beginning of the year, Essilor has formed 22 partnerships,
representing aggregate full-year revenue of €94 million.

Cash position

Essilor continued to generate solid operating cash flow,^3 enabling it to
reduce net debt by nearly €200 million compared during the quarter to €414
million at September 30, 2012.


Essilor confirms its full-year objectives of 12% to 15% growth in revenue,
before the currency effect, and of sustained high profitability excluding
strategic acquisitions.

^2 Acquisitions or local partnerships
^3 Net cash from operating activities before working capital requirement

Appendix – Revenue by quarter, 2012 vs. 2011

€ millions          Q3 2012  Q2 2012  Q1 2012  Q3 2011  Q2 2011  Q1 2011
Lenses and optical  1,105.1  1,110.3  1,138.9  952.0    920.8    943.7
North America       446.2    442.0    455.8    382.3    363.2    394.6
Europe              370.9    392.1    405.6    356.1    367.8    365.3
Asia-Pacific &      210.7    202.7    206.5    143.7    127.7    131.0
Latin America       77.3     73.5     71.0     69.9     62.0     52.8
Equipment           48.0     49.8     45.7     42.4     49.0     40.4
Readers             75.5     100.5    85.3     44.9     62.7     43.5
TOTAL               1,228.6  1,260.6  1,269.9  1,039.3  1,032.5  1,027.6

A conference call in French will be held today at 9:00 a.m. CEST

The number to dial is: + 33 (0)1 70 99 42 86

The conference will be available for later listening at:

A conference call in English will follow at 10:00 a.m. CEST

The number to dial is: +44 (0)20 7136 2055

The conference will be available for later listening at:

Forthcoming investor events

The 2012 annual results will be released on February 28, 2013.

About Essilor

The world’s leading ophthalmic optics company, Essilor designs, manufactures
and markets a wide range of lenses to improve and protect eyesight. Its
corporate mission is to enable everyone around the world to access lenses that
meet his or her unique vision requirements.To support this mission, the
Company allocates around €150 million to research and development every year,
in a commitment to continuously bring new, more effective products to market.
Essilor’s flagship brands are Varilux^®, Crizal^®, Definity^®, Xperio^®,
Optifog™ and Foster Grant^®. It also develops and markets equipment,
instruments and services for eyecare professionals.

Essilor reported consolidated revenue of €4.2 billion in 2011 and employs
around 48,700 people in some 100 countries. It operates 19 plants, a total of
390 prescription laboratories and edging facilities, as well as several
research and development centers around the world.

For more information, please visit

The Essilor share trades on the NYSE Euronext Paris market and is included in
the EuroStoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR FR0000121667;
Reuters: ESSI.PA; Bloomberg: EI:FP.


Investor Relations and Financial Communication
Véronique Gillet – Sébastien Leroy, +33 (0)1 49 77 42 16
Media Relations
Maïlis Thiercelin, +33 (0)1 49 77 45 02
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