Essilorluxottica Sa · EURONEXT:EL
Essilorluxottica Sa — Q4 2022 Earnings Presentation
26 slides from Essilorluxottica Sa's earnings presentation, Feb 14, 2023
Slide 1: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 February 23, 2023 Patrick Mahomes – NFL Season MVP, Super Bowl LVII winner and MVP
Slide 2: 2022 Financial Highlights
2022 Financial Highlights • Group’s sales at Euro 24.5 billion in FY 2022, up 13.9% vs 2021 in comparable terms • Adjusted operating margin at 16.8% in FY 2022, up 70bps vs pro forma FY 2021 • Group’s comparable-store sales up 7.7% in FY 2022, ex-GV outperformed at +9.3% • Investment in capex and M&
Slide 3: 2022 Operational Highlights
2022 Operational Highlights • One Company at work, rich innovation pipeline in 2022 and 2023 • Crizal and Shamir releasing new advanced coating range • Stellest roll out progressing • Launch of Varilux XR Series powered by artificial intelligence • Ray-Ban advancing on sustainability and enriched of
Slide 4: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 4
Slide 5: Financial Highlights
Financial Highlights Q4 FY Current Exchange Rates REVENUE GROWTH vs 2021 +9.4% +13.9% IN COMPARABLE TERMS ADJUSTED OPERATING PROFIT 16.8% AS A % OF REVENUE Constant Exchange Rates REVENUE GROWTH vs 2021 +3.9% +7.5% IN COMPARABLE TERMS ADJUSTED OPERATING PROFIT 16.7% AS A % OF REVENUE Q4 Revenue and
Slide 6: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 6
Slide 7: Growing on a challenging comparison base in Q4
Growing on a challenging comparison base in Q4 Group comparable revenue growth at constant exchange rates +11.5% +11.0% +9.3% +8.3% +8.2% +7.0% +3.9% +0.8% Q1 Q2 Q3 Q4 2021 vs 2019 2022 vs 2021 Q4 Revenue & FY Results 2022 7
Slide 8: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 8
Slide 9: Q4 revenue by region 2022 vs 2021
Q4 revenue by region 2022 vs 2021 Change at constant Change at current € million Q4 2022 Q4 2021* exchange rates exchange rates North America 2,892 2,528 +2.7% +14.4% EMEA 2,086 1,987 +6.2% +5.0% Asia-Pacific 731 706 +3.1% +3.5% Latin America 398 359 +0.6% +10.6% EssilorLuxottica 6,106 5,579 +3.9% +
Slide 10: Q4 revenue by segment 2022 vs 2021
Q4 revenue by segment 2022 vs 2021 Change at constant Change at current € million Q4 2022 Q4 2021* exchange rates exchange rates Professional Solutions 2,905 2,678 +2.8% +8.5% Direct To Consumer 3,201 2,901 +4.9% +10.3% EssilorLuxottica 6,106 5,579 +3.9% +9.4% * Comparable revenue. Q4 Revenue & FY R
Slide 11: FY revenue by region 2022 vs 2021
FY revenue by region 2022 vs 2021 Change at constant Change at current € million FY 2022 FY 2021* exchange rates exchange rates North America 11,492 9,868 +4.0% +16.5% EMEA 8,749 7,953 +11.2% +10.0% Asia-Pacific 2,842 2,542 +7.2% +11.8% Latin America 1,410 1,136 +13.1% +24.2% EssilorLuxottica 24,494
Slide 12: FY revenue by segment 2022 vs 2021
FY revenue by segment 2022 vs 2021 Change at constant Change at current € million FY 2022 FY 2021* exchange rates exchange rates Professional Solutions 11,770 10,399 +6.3% +13.2% Direct To Consumer 12,724 11,099 +8.6% +14.6% EssilorLuxottica 24,494 21,498 +7.5% +13.9% * Comparable revenue. Q4 Revenu
Slide 13: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 13
Slide 14: Storecount on December 31, 2022
Storecount on December 31, 2022 North Asia- Latin Corporate Franchising Total EMEA America Pacific America Stores & Other Storecount Sunglass Hut 1,682 621 297 415 3,015 189 3,204 LensCrafters 1,012 81 1,093 5 1,098 Apollo Optik 680 680 220 900 Vision Express 664 664 160 824 Target Optical 562 562 5
Slide 15: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 15
Slide 16: North America revenue +2.7% in Q4
North America revenue +2.7% in Q4 • Slightly decelerating on a challenging comparison base • PS growth driven by branded lenses • Independents improving thanks to partnership programs/alliances • Brick & Mortar optical banners recovering • LensCrafters closing flat, strong in December leveraging ins
Slide 17: EMEA revenue +6.2% in Q4
EMEA revenue +6.2% in Q4 • Best performing region driven by DTC • PS boosted by sun/luxury • In PS solid France, Italy and Spain, Germany back to growth • Optical retail accelerating, driven by ex-GrandVision banners • Générale d’Optique, GrandOptical and Vision Express leading • Sunglass Hut comp u
Slide 18: Asia-Pacific revenue +3.1% in Q4
Asia-Pacific revenue +3.1% in Q4 • China impacting performance due to COVID-19 • PS up low-single digit driven by India, SEA, South Korea and Japan • Stellest driving solid myopia portfolio, new launch in Australia • Optical banners softening, as traffic under pressure in China and OPSM facing a tou
Slide 19: Latin America revenue +0.6% in Q4
Latin America revenue +0.6% in Q4 • Positive DTC compensating softer PS • PS Brazil turning negative • Sound Sunglass Hut performance driven by Brazil and Mexico • Optical progressing nicely with GMO returning positive • Ex-GrandVision banners delivering strong growth Q4 Revenue & FY Results 2022 19
Slide 20: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 20
Slide 21: Adjusted statement of profit or loss
Adjusted statement of profit or loss Change at Change at € million FY 2022 FY 2021* constant ER current ER Revenue 24,494 21,498 +7.5% +13.9% Cost of sales (8,888) (7,869) +6.2% +12.9% Gross profit 15,606 13,628 +8.3% +14.5% Margin % 63.7% 63.4% Total operating expenses (11,491) (10,157) +7.4% +13.1
Slide 22: Net Debt & Free Cash Flow
Net Debt & Free Cash Flow • FCF at Euro 2.26 billion in FY 2022 • Capex at Euro 1.57 billion • Net Debt at Euro 10.25 billion on 31 Dec 2022 (including lease liabilities of Euro 3.18 billion) • Net Debt / EBITDA at 1.7x • Cash & Cash Equivalents at Euro 1.96 billion Q4 Revenue & FY Results 2022 22
Slide 23: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 23
Slide 24: Mission & Sustainability
Mission & Sustainability • Group’s positive impact globally recognized, with awards in China, Singapore and Africa • In 2022, access to vision care given to 110 million people, nearly 10 million wearers created by OneSight EssilorLuxottica Foundation • Celebration of World Sight Day worldwide with f
Slide 25: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 25
Slide 26: Q4 Revenue & FY Results 2022
Q4 Revenue & FY Results 2022 26