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Essilor: 2013 revenue up 5.4% excluding the currency effect

  Essilor:2013 revenue up 5.4% excluding the currency effect

                      Profitability higher than in 2012

Business Wire

CHARENTON-LE-PONT, France -- January 17, 2014

Regulatory News:

Essilor (Paris:EI), the world leader in ophthalmic optics, today announced
estimated consolidated revenue of €5,065.2 million for the year ended December
31, 2013, representing a 1.5% increase on the previous year.

Estimated 2013 revenue up 5.4% excluding the currency effect

                                           % Change     % Change     Change in the   Currency
In € millions        2013     2012^(a)  (reported)  (like-for-  scope of       effect
                                                        like)        consolidation
Lenses and Optical   4,505.4  4,445.2   +1.4%       +1.8%       +3.5%          -3.9%
Instruments
North America        1,770.4  1,775.4   -0.3%       +0.5%       +2.8%          -3.6%
Europe               1,572.1  1,570.2   +0.1%       +0.5%       +0.5%          -0.9%
Asia/Pacific/Middle  812.1    777.6     +4.4%       +4.2%       +8.2%          -8.0%
East/ Africa
Latin America        350.8    322.0     +8.9%       +9.7%       +10.7%         -11.5%
Equipment            204.9    199.2     +2.9%       +7.3%       -1.5%          -2.9%
Readers              354.9    344.4     +3.0%       +2.7%       +3.7%          -3.4%
TOTAL                5,065.2  4,988.8   +1.5%       +2.1%       +3.3%          -3.9%

(a) In 2012, Nikon-Essilor’s revenue in North America (€39.5 million) and
Europe (€11.5 million) was recognized in the Asia/Pacific/Middle East/Africa
region.

Growth in 2013 revenue reflects:

  *A 2.1% like-for-like increase in revenue over the year, reflecting an
    improvement in sales from the first half (up 1.2%) to the second (up
    3.0%).
  *A 3.3% impact from changes in scope of consolidation, attesting to the
    growing contribution of Essilor's acquisitions strategy from quarter to
    quarter.
  *A 3.9% negative currency effect attributable to the rise in the euro
    against most of the Company’s billing currencies.

In 2013, Essilor’s strong drive to innovate led to several major product
roll-outs, including the Varilux^® S series progressive lens, the Crizal^® UV
antireflective lens and, at the end of the year, Crizal^® Prevencia™, the
first lens that filters harmful blue light. The popularity of these products
with eyecare professionals, combined with the Company’s assertive acquisitions
strategy, enabled Essilor to strengthen its global positions during the year.

Nevertheless, the Company’s organic growth was held back by fierce competition
and by a slowdown in the eyecare market in certain regions reflecting a
challenging economic environment.

Estimated fourth-quarter 2013 revenue up 7.3% excluding the currency effect

Estimated fourth-quarter 2013 revenue totaled €1,252.2 million. The 1.8%
increase corresponded to 3.0% organic growth and the 4.3% impact of changes in
scope of consolidation, less a 5.5% negative currency effect.

                                Q4         % Change     % Change     Change in the   Currency
In € millions        Q4 2013  2012^(a)  (reported)  (like-for-  scope of       effect
                                                        like)        consolidation
Lenses and Optical   1,094.6  1,090.9   +0.3%       +2.0%       +3.9%          -5.6%
Instruments
North America        416.1    419.9     -0.9%       +0.9%       +3.7%          -5.5%
Europe               393.7    392.9     +0.2%       -0.4%       +1.7%          -1.1%
Asia/Pacific/Middle  196.6    197.0     -0.2%       +6.3%       +5.0%          -11.5%
East/ Africa
Latin America        88.2     81.1      +8.7%       +9.4%       +12.6%         -13.3%
Equipment            60.3     55.6      +8.4%       +15.2%      -2.7%          -4.1%
Readers              97.3     83.2      +17.0%      +6.9%       +15.3%         -5.2%
TOTAL                1,252.2  1,229.7   +1.8 %      +3.0%       +4.3%          -5.5 %

(a) In the fourth quarter of 2012, Nikon-Essilor’s revenue in North America
(€9.8 million) and Europe (€2.8 million) was recognized in the
Asia/Pacific/Middle East/Africa region.

In the fourth quarter of 2013, the Readers and Equipment Divisions performed
well and North American operations enjoyed a recovery. However, sales were
adversely affected by an unfavorable basis of comparison in the United States,
the loss of a major contract in Europe and a difficult economic and regulatory
environment in France. Essilor’s overall performance was also impacted by
delays in completing several acquisitions.

For the full year, contribution from operations^1 is expected to be slightly
higher than in 2012, demonstrating once again the strength of the Company’s
growth model.

The final revenue figure and the consolidated financial statements will be
released on February 27, 2014.

^1 Operating profit before compensation costs for share-based payment plans,
restructuring costs, other income and expense, and goodwill impairment.

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 more than €150 million to research and innovation every
year, in a commitment to continuously bring new, more effective products to
market. Essilor’s flagship brands are Varilux^®, Crizal^®, Definity^®,
Xperio^®, Optifog^TM and Foster Grant^®. It also develops and markets
equipment, instruments and services for eyecare professionals.

Essilor reported consolidated revenue of approximately €5 billion in 2012 and
employs around 50,700 people. It operates in some 100 countries with 22
plants, more than 400 prescription laboratories and edging facilities, as well
as several research and development centers around the world.

For more information, please visit www.essilor.com.

The Essilor share trades on the NYSE Euronext Paris market and is included in
the Euro Stoxx 50 and CAC 40 indices.

Codes and symbols: ISIN: FR0000121667; Reuters: ESSI.PA; Bloomberg: EI:FP.

Contact:

Investor Relations and
Financial Communication
Véronique Gillet
Sébastien Leroy
Ariel Bauer
Tel.: +33 (0)1 49 77 42 16
or
Corporate Communication
Lucia Dumas
Press
Maïlis Thiercelin
Tel.: +33 (0)1 49 77 45 02
 
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