Essilorluxottica Sa · EURONEXT:EL
Essilorluxottica Sa — FY 2020 Earnings Presentation
19 slides from Essilorluxottica Sa's earnings presentation, Mar 12, 2021
Slide 1: EssilorLuxottica FY 2020 Results
ESSILORLUXOTTICA FY 2020 RESULTS March 12, 2021 FY 2020 Results 1
Slide 2: Resilience and Agility in 2020
RESILIENCE AND AGILITY IN 2020 • A pivotal year for EssilorLuxottica • COVID-19 proves to be a catalyst – Outstanding adaptability of employees and customers – Client intimacy, supply chain flexibility, new consumer habits – Strict financial discipline • Solid results and cash illustrate key strengt
Slide 3: Financial Highlights FY 2020
FINANCIAL HIGHLIGHTS FY 2020 AT CURRENT EXCHANGE RATES FY 2020 REVENUE GROWTH -17.0% (curr. ER) -14.6% (const. ER) ADJUSTED OPERATING PROFIT (%) 9.5% ADJUSTED NET PROFIT * € 788 mln FREE CASH FLOW € 1.8 bn CASH & SHORT-TERM INVESTMENTS € 8.9 bn * Adjusted net profit attributable to the owners of the
Slide 4: Revenue by Segment, Q4 2020
REVENUE BY SEGMENT, Q4 2020 Change at constant Change at current € million Q4 2020 Q4 2019* exchange rates exchange rates Lenses & Optical Instruments 1,685 1,701 5.3% -0.9% Sunglasses & Readers 188 214 -8.8% -12.3% Equipment 50 70 -24.3% -27.9% Essilor revenue 1,923 1,985 2.7% -3.1% Wholesale 692 7
Slide 5: Revenue by Region, Q4 2020
REVENUE BY REGION, Q4 2020 Change at constant Change at current € million Q4 2020 Q4 2019* exchange rates exchange rates North America 2,213 2,270 4.2% -2.5% Europe 911 971 -3.7% -6.3% Asia, Oceania and Africa 727 757 -1.0% -4.0% Latin America 263 305 7.1% -14.0% TOTAL 4,113 4,304 1.7% -4.4% * Reven
Slide 6: Revenue by Segment, FY 2020
REVENUE BY SEGMENT, FY 2020 Change at constant Change at current € million FY 2020 FY 2019* exchange rates exchange rates Lenses & Optical Instruments 5,960 6,791 -9.5% -12.2% Sunglasses & Readers 595 740 -18.0% -19.6% Equipment 158 221 -26.9% -28.5% Essilor revenue 6,714 7,752 -10.8% -13.4% Wholesa
Slide 7: Revenue by Region, FY 2020
REVENUE BY REGION, FY 2020 Change at constant Change at current € million FY 2020 FY 2019* exchange rates exchange rates North America 7,901 9,146 -11.8% -13.6% Europe 3,450 4,239 -17.5% -18.6% Asia, Oceania and Africa 2,362 2,891 -16.4% -18.3% Latin America 715 1,114 -21.9% -35.8% TOTAL 14,429 17,3
Slide 8: North America: Revenue +4.2% in Q4, -12% in the FY
NORTH AMERICA: REVENUE +4.2% IN Q4, -12% IN THE FY * • Best performing region in the second half of the year ‒ Lenses, Wholesale and Retail divisions drove Q4 acceleration ‒ E-commerce up almost 60% in the full year, boosted by our major websites: Ray- Ban.com, Oakley.com, SunglassHut.com, Costa.com
Slide 9: Europe: Revenue -3.7% in Q4, -17% in the FY
EUROPE: REVENUE -3.7% IN Q4, -17% IN THE FY * • Nice recovery in H2, but new waves of restrictions in Q4 • Lenses & Optical Instruments up in H2, most resilient division throughout 2020 ‒ Good product mix ‒ Strong ECP and e-commerce channels ‒ Good performance in France thanks to multi-network strat
Slide 10: Asia, Oceania and Africa: Revenue -1.0% in Q4, -16% in the FY
ASIA, OCEANIA AND AFRICA: REVENUE -1.0% IN Q4, -16% IN THE FY * • Lenses & Optical Instruments back to growth in Q4, flat in H2 – Mainland China up double digits in H2 driven by branded lenses, blue cut and myopia management with Stellest ramp up – Japan and Australia: continued momentum – Rest of r
Slide 11: Latin America: Revenue +7.1% in Q4, -22% in the FY
LATIN AMERICA: REVENUE +7.1% IN Q4, -22% IN THE FY * • Strong rebound in Q4, fuelled by Lenses and Retail • Lenses & Optical Instruments up high-single digits in Q4 ‒ Limited store closures for most of the quarter ‒ Brazil driven by mid-tier (blue-cut, Kodak) and high-end (Transitions, Varilux) ‒ Me
Slide 12: Adjusted Consolidated Statement of Profit or Loss, FY 2020
ADJUSTED CONSOLIDATED STATEMENT OF PROFIT OR LOSS, FY 2020 Change at Change at € millions FY 2020 FY 2019 current ER constant ER Revenue 14,429 17,390 -17.0% -14.6% Cost of sales (5,936) (6,503) -8.7% -6.2% Gross profit 8,493 10,887 -22.0% -19.6% Margin % 58.9% 62.6% Total operating expenses (7,118)
Slide 13: Adjusted Consolidated Statement of Profit or Loss, H2 2020
ADJUSTED CONSOLIDATED STATEMENT OF PROFIT OR LOSS, H2 2020 Change at Change at € millions H2 2020 H2 2019 current ER constant ER Revenue 8,199 8,614 -4.8% 0.3% Cost of sales (3,250) (3,276) -0.8% 4.3% Gross profit 4,948 5,337 -7.3% -2.2% Margin % 60.4% 62.0% Total operating expenses (3,700) (4,037)
Slide 14: Strong Liquidity
STRONG LIQUIDITY • Free cash flow − € 1.9 billion generation in H2 − Capex contained at € 650 million, one third down • Net debt − € 3.0 billion net debt at year end (€ 4.0 billion in 2019) − € 8.9 billion cash and short term investments • Dividend − € 1.08 dividend per share proposed − On top of €
Slide 15: Integration
INTEGRATION • Synergy targets confirmed at adjusted operating profit level − € 300 to 350 million by end 2021 − € 420 to 600 million by end 2023 • Integration process gained momentum − 28 active work streams − Revenue synergies: Ray-Ban Authentic, EssilorLuxottica 360 and Retail cross/up-selling − S
Slide 16: Innovation at the Heart of Our DNA
INNOVATION AT THE HEART OF OUR DNA • Disruptive innovations − Stellest in myopia management − Facebook/Ray-Ban smart glasses − Electrochromic capabilities • Improved eye exams − Vision R-800 and AVA lenses − Tele-optometry • New generations − Varilux Comfort Max − Crizal Rock − Eyezen Start − Transi
Slide 17: Business Digitalisation
BUSINESS DIGITALISATION • E-commerce revenue up 40%* to €1.2bn • Consumer journey – Digital tools in store (Smart Shopper, Frame Advisor) – Omnichannel – CRM • Patient journey – Optical instruments – Tele-medicine: remote measurements, tele-optometry • Business-to-Business – Selling digital tools (R
Slide 18: Social Impact & Sustainability in Support of Our Mission
SOCIAL IMPACT & SUSTAINABILITY IN SUPPORT OF OUR MISSION • Eliminating poor vision around the world − New access to vision care for over 420 million people since 2013 − Innovation in teleconsultation and low-cost vision screening − Awareness increased through partnerships (Tencent, FIA, UN) • Embedd
Slide 19: 2021 Outlook
2021 OUTLOOK • Ambition to deliver a performance comparable to pre-pandemic levels • Taking into account: − Uncertainties around COVID-19 − Positive momentum already visible in Asia-Pacific − Hopes that vaccination will start to normalize the business environment in other regions during Q2 • Current