Essilorluxottica Sa · EURONEXT:EL
Essilorluxottica Sa — Q4 2023 Earnings Presentation
25 slides from Essilorluxottica Sa's earnings presentation, Feb 15, 2024
Slide 1: Q4/FY 2023 Results
Q4/FY 2023 Results February 14, 2024
Slide 2: Financial Highlights
Financial Highlights • Group revenue at constant exchange rates +7.1% in Q4 and FY, third consecutive year >7% • Nice acceleration in North America in Q4, EMEA keeping the sound pace of Q3 • Innovation as a key driver, with Stellest, Varilux XR and Ray-Ban Meta • Frame portfolio strengthened with ne
Slide 3: Operational Highlights
Operational Highlights • Deep innovation roll-out in 2023 and 2024 • Cutting-edge next generation Transitions Gen S just unveiled • First collections launched on Brunello Cucinelli, Ferrari, Jimmy Choo and Roger Federer with Oliver Peoples • Well-balanced myopia management ecosystem in place • New s
Slide 4: Mission & Sustainability
Mission & Sustainability • OneSight EssilorLuxottica Foundation footprint expanded to Latin America • Access to vision care given to 177 million people in 2023, >4,900 access points established • 270,000 beneficiaries screened in 49 countries in the World Sight Day • Awareness on good vision support
Slide 5: Nuance Audio: in tune with life
nuance audio in tune with life
Slide 6: Revenue Growth
Revenue Growth Constant Current exchange rates exchange rates Q4 2023 vs 2022 Group Revenue +7.1% +2.4% FY 2023 vs 2022 Group Revenue +7.1% +3.7% Q4/FY 2023 Results 6
Slide 7: Financial Highlights
Financial Highlights Q4 FY Current exchange rates REVENUE GROWTH vs 2022 +2.4% +3.7% ADJUSTED OPERATING PROFIT 16.5% AS A % OF REVENUE Constant exchange rates REVENUE GROWTH vs 2022 +7.1% +7.1% ADJUSTED OPERATING PROFIT 16.9% AS A % OF REVENUE Q4/FY 2023 Results 77
Slide 8: The Next Generation of Smart Glasses: Call
CALL THE NEHT GENERATION OF SMART GLASSES upon | Meta
Slide 9: Q4 revenue by segment, 2023 vs 2022
Q4 revenue by segment, 2023 vs 2022 Change at constant Change at current € million Q4 2023 Q4 2022 exchange rates exchange rates Professional Solutions 2,986 2,905 +8.1% +2.8% Direct To Consumer 3,264 3,201 +6.1% +1.9% EssilorLuxottica 6,250 6,106 +7.1% +2.4% Q4/FY 2023 Results 9
Slide 10: Q4 revenue by region, 2023 vs 2022
Q4 revenue by region, 2023 vs 2022 Change at constant Change at current € million Q4 2023 Q4 2022 exchange rates exchange rates North America 2,910 2,892 +5.9% +0.6% EMEA 2,150 2,086 +6.4% +3.1% Asia-Pacific 757 731 +10.3% +3.6% Latin America 433 398 +12.7% +8.8% EssilorLuxottica 6,250 6,106 +7.1% +
Slide 11: FY revenue by region and segment, 2023 vs 2022
FY revenue by region and segment, 2023 vs 2022 Change at constant Change at current € million FY 2023 FY 2022 exchange rates exchange rates North America 11,637 11,492 +4.2% +1.3% Professional Solutions 5,337 5,243 +4.8% +1.8% Direct To Consumer 6,300 6,249 +3.8% +0.8% EMEA 9,184 8,749 +8.2% +5.0% P
Slide 12: The Next Generation of Smart Glasses: Livestream
LIVESTREAM THE NEHT GENERATION OF SMART GLASSES Puen | Meta © i eos hi elo, greatmusic! photosbyean joined
Slide 13: Store Count on December 31, 2023
Store Count on December 31, 2023 North Asia- Latin Corporate Franchising Total EMEA America Pacific America Stores & Other Storecount Sunglass Hut 1,652 572 314 411 2,949 232 3,181 LensCrafters 1,014 87 1,101 5 1,106 Vision Express 855 855 152 1,007 Apollo 682 682 223 905 Target Optical 574 574 574
Slide 14: The Next Generation of Smart Glasses: Ask Meta AI
ASK META Al THE NEHT GENERATION OF SMART GLASSES Pauper | Meta
Slide 15: North America revenue +5.9% in Q4
North America revenue +5.9% in Q4 PROFESSIONAL SOLUTIONS • Up mid-single digit, with strong branded lenses led by Varilux, thanks to XR • Luxury frames still solid and Ray-Ban accelerating, with Ray-Ban Meta • Growth well balanced between independent ECPs and key accounts DIRECT TO CONSUMER • Close
Slide 16: EMEA revenue +6.4% in Q4
EMEA revenue +6.4% in Q4 PROFESSIONAL SOLUTIONS • Up mid-single digit, sound pace across mature and developing markets • Varilux supported by XR series • Frames bolstered by new brands (like Swarovski) and initiatives (with Ray-Ban) DIRECT TO CONSUMER • Comp up around 9% in both optical and sun bann
Slide 17: Asia-Pacific revenue +10.3% in Q4
Asia-Pacific revenue +10.3% in Q4 PROFESSIONAL SOLUTIONS • Up double digits, with China’s underlying business in good shape • Stellest more than doubling revenues and Bolon fast growing in China • Solid performance in India, Japan and South Korea DIRECT TO CONSUMER • Comp up mid-single digit, optica
Slide 18: Latin America revenue +12.7% in Q4
Latin America revenue +12.7% in Q4 PROFESSIONAL SOLUTIONS • Up mid teens, driven by recovering Brazil and solid Mexico • Varilux and Kodak supporting lens growth • Ray-Ban continuing to thrive in frames DIRECT TO CONSUMER • Double-digit comp in optical, fueled by the integration of Mexican GV banner
Slide 19: Slide 19
Slide 20: Adjusted Statement of Profit or Loss
Adjusted Statement of Profit or Loss Constant Current € million FY 2023 FY 2022 exchange exchange rates rates Revenue 25,395 24,494 +7.1% +3.7% Cost of sales (9,305) (8,888) +7.9% +4.7% Gross profit 16,090 15,606 +6.7% +3.1% Margin % 63.7% 63.5% 63.4% Total operating expenses (11,912) (11,491) +6.4%
Slide 21: Currency Mix
Currency Mix 43% Revenue Cost 39% 28% 23% 7% 5% 5% 4% 3% 3% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% USD EUR GBP CNY CAD AUD BRL MXN TRY JPY CHF SEK INR PLN Q4/FY 2023 Results 21
Slide 22: Adjusted Operating Margin Bridge
Adjusted Operating Margin Bridge +10 bps +270 bps -50 bps 16.8% -210 bps 16.9% -40 bps 16.5% 2022 Inflation Price/Mix & Strategic 2023 FX Impact 2023 Operating Investments Constant Current Efficiencies exchange exchange rates rates Q4/FY 2023 Results 22
Slide 23: Slide 23
Slide 24: Free Cash Flow & Net Debt
Free Cash Flow & Net Debt • Free cash flow at Euro 2.4 billion • Capex at Euro 1.53 billion • Net Debt at Euro 9.10 billion on 31 Dec 2023 (including lease liabilities of Euro 3.24 billion) • Net Debt / EBITDA LTM at 1.5x • Cash & Cash Equivalents at Euro 2.56 billion Q4/FY 2023 Results 24
Slide 25: Patrick Mahomes, three-time Super Bowl winner
As a quarterback of the Kansas City Chiefs, Patrick Mahomes won three Superbowls Q4/FY 2023(2020, Results 2023 and 2024), being named MVP in all three games. He was also awarded MVP for the NFL season in 2018 and 2022.