Download - Essilor

2011
ANNUAL
REPORT
ESSILOR
COMMUNITY
A YEAR WITH OUR PARTNERS

- CONTENTS -
24 34 40
02 The Group in 2011
04 Interview with
Hubert Sagnières
07 Highlights
12 Market Focus
- Europe
- Asia-Oceania-Africa-
Middle East
- Latin America
- North America
- Readers
- Equipment
18 Corporate Governance
- Executive Committee
- Message from Xavier
Fontanet
- Board of Directors
22 ESSILOR COMMUNITY
24 Partners for Business
34 Partners for Innovation
40 Partners for Social
Responsibility
46 Financial Results
A COMMUNITY OF
ENTREPRENEURS,
RESEARCHERS AND EYE
CARE PROFESSIONALS…
TO HELP SEE THE WORLD
BETTER

- PROFILE -
Essilor, the world leader
in ophthalmic optics
Our mission: to enable the maximum number of
people around the world to enjoy a better life
through better sight.
4.2 billion people out of the world’s population of
7 billion need a visual correction and only 1.7 billion
have one. This leaves 2.5 billion people without
the visual correction they need. Essilor makes
every effort to offer a product adapted to the
needs of each person around the world.
RESPECT AND TRUST
Respect and trust are at the heart of our human
relationships and foster commitment.
ENTREPRENEURIAL SPIRIT
Our entrepreneurial spirit, which is reflected
in the encouragement of initiative and
empowerment, is one of Essilor’s founding
characteristics.
Shared values
DIVERSITY
Our diversity and the values we place on differences are
strengths which enrich our human experience. They
accompany our geographic expansion and our adaptation
to local cultures.
WORKING TOGETHER
Working together enhances the Group’s
performance and enables us to maintain
a dynamic of continuous improvement.
INNOVATION
Innovation concerns all aspects of the
company: technology, manufacturing,
sales and service. Innovation to
promote access to visual health for the
maximum number of people is what
drives our development.
ESSILOR 2011
PROFILE - 01

- THE GROUP IN 2011 -
ESSILOR AT A GLANCE
OPERATING IN OVER 100 COUNTRIES, THE GROUP HAS 19 PRODUCTION
FACILITIES, 390 PRESCRIPTION LABORATORIES AND EDGING FACILITIES,
AND 3 INNOVATION AND TECHNOLOGY CENTERS.
5%
Readers
4.4%
Equipment
€4.2bn
of revenue
€506m
of profit attributable to equity holder
€150m
Annual budget for Research
and Development
90.6%
Lenses and Optical
Instruments
REVENUE BY BUSINESS
02

48,700
employees in
58 countries,
on the 5 continents.
390
prescription
laboratories and
edging facilities.
19
production plants.
LENSES AND OPTICAL INSTRUMENTS
REVENUE BY REGION
In € millions and as a % of consolidated total
€1,471.2m
35.1%
€1,519m
36.3%
€556.1m
13.3%
€249.5m
5.9%
North America
Latin America
Europe
Asia-Oceania – Middle East – Africa
€209.1m
5%
Readers
€184.6m
4.4%
Equipment
ESSILOR 2011
THE GROUP IN 2011 - 03

- INTERVIEW -
“OUR AMBITION: VISUAL HEALTH
ACCESSIBLE TO THE GREATEST
NUMBER OF PEOPLE”
HUBERT SAGNIÈRES, CHAIRMAN & CEO LOOKS BACK ON 2011.
How would you characterize Essilor’s
performance in 2011?
Hubert Sagnières — 2011 was a very good year for
Essilor, with sales up 9.7% excluding the currency
effect, and up 7.3% excluding the currency impact
and strategic acquisitions – at the high end of our
target for the year. This growth was well balanced
between developed markets and high growth
markets. The profitability of the Group remained
at a high level with a contribution margin of 17.9%.
We achieved this good performance by pursuing
our strategy of innovation in products and services
and accelerating our acquisition strategy
to strengthen our presence in the fast growing
markets.
Did the difficult economic situation impact
your business?
H. S. — We are in a market where the need for good
vision is growing everywhere in the world.
In the mature markets, aging populations increase
the number of presbyopic people and there is
strong consumer demand for lenses with high added
value such as anti-reflective coatings or anti-fog
properties. In the fast growing markets, the increasing
purchasing power of the middle classes gives us
good growth potential. So, despite the economic
and financial difficulties of 2011, Essilor continued
on its growth path and demonstrated the strength
of its strategy and its ability to withstand fluctuations
in our economic environment.
You said that accelerating in the fast growing
markets was an important challenge for you
in 2011. How would you evaluate your progress?
H. S. — In 2009 our sales in the fast growing markets
were only 11% of the Group’s sales. In 2011 this rose
to 14.3% with sales of over 600 million euros.
In 2011 we developed 20 partnerships in these
“IN 2009 OUR SALES IN THE FAST
GROWING MARKETS WAS ONLY 11%
OF THE GROUP’S SALES. IN 2011 THIS
ROSE TO 14.3%”
countries, in particular with the market leaders in
India, Brazil and Russia, and we started doing business
in new countries such as Morocco, Colombia, Turkey
and the Dominican Republic. In these markets our
ambition is to grow our sales from 600 million euros
to 1.5 billion euros in 2015.
04

You made two strategic acquisitions during the
year with Shamir and Stylemark. How do these fit
into your strategy?
H. S. — We completed the acquisition of 50% of Shamir
Optical on 1st July. Shamir is a fast growing industry
player with innovative products and technologies.
This acquisition is perfectly in line with our strategy to
expand our offer in the mid-range segment. At the end
of the year our subsidiary FGX International completed
the acquisition of Stylemark, one of the foremost
designers and distributers of non-prescription reading
glasses and sunglasses. Through this acquisition FGX
International will add new customers, build stronger
relationships with existing customers and enter the fast
growing department store segment.
What is the role of innovation in your strategy and
what were the main innovations of the year?
H. S. — Innovation remains the key driver of our strategy
and one of the cornerstones of the relationship with our
customers. 45% of our sales are derived from products
that we have brought to market in the last three years. In
2011 we launched Optifog, a new category of anti fogging
lenses. These lenses represent a major technological
breakthrough in response to high consumer demand
which, until now, could not be met. This innovation was
well received in the marketplace and contributed to our
strong performance at the end of the year.
At the beginning of 2012 we introduced another major
innovation with Crizal UV. These lenses offer the most
advanced protection against the everyday dangers of UV
rays and bring this category of lenses to the forefront of
eye health protection.
Society today demands that companies are
increasingly responsible in the way they do
business. What does Essilor do in this area?
H. S. — Providing better visual health to as many
people in the world as possible is both an ambition
and a responsibility for Essilor and occupies all
of our teams on a daily basis. Today it is estimated
810 2.5
million
billion people in the
schoolchildren in the world need a visual
world have problems correction but do
at school due to
not have one.
uncorrected vision.
>
ESSILOR 2011
INTERVIEW WITH HUBERT SAGNIÈRES - 05

“ESSILOR IS BEGINNING
2012 IN A STRONGER
POSITION AND WE ARE
CONFIDENT.”
>
that 2.5 billion people in the world need a visual
correction but do not have one. If this situation
continues, by 2030 this number could increase to
3.5 billion people. Poor vision has extremely important
consequences, both for the individual and for the
community. Today 810 million schoolchildren have
problems at school due to uncorrected vision.
What starts at school continues in the workplace:
the loss of productivity in American companies
due to poor vision of their employees could be
as much as 22 billion dollars per year. By the same
token, healthcare costs rise through the increased
dependency of elderly people and higher risks
of falls and fractures or car accidents. To contribute
to improving poor vision, Essilor undertakes
many initiatives to diagnose and provide eyeglasses
such as the vans that travel around India and provide
glasses for less than five dollars, the Essilor Vision
Foundation that provided 9,000 pairs of glasses
to children in the United States last year, or the kiosks
set up in 24 Chinese cities. We are committed
to continuing and expanding these initiatives
to improve vision in the world, and to contribute
to the economic and social development of
communities as well as to the personal development
of individuals.
How do you see the year 2012?
H. S. — Essilor is beginning 2012 in a stronger position
and we are confident. We have an important new
product programme, major contracts with the optical
chains and strong growth potential in our two most
recent activities, readers and equipment. But, above
all, we have 50,000 employees mobilized around our
mission of improving the vision of the 4.2 billion people
in the world who need a visual correction. Through
their energy, their passion and their talents Essilor will
continue to grow.
The Board of Directors recently appointed
you as Chairman and CEO of Essilor.
What message would you like to send as
we begin this year?
H. S. — I would first like to thank the Board for its
confidence. I want especially to thank Xavier Fontanet
who has devoted twenty years to the Group’s growth
and international development and to spreading
its values as an ethical, responsible company that is
innovative on all fronts. These are values to which
I strongly adhere and which I will continue to promote
in order to maintain the confidence of our employees,
our customers, our partners and our shareholders.
Our mission, which is to give access to better
vision to the maximum number of people across
the globe, will continue to drive our growth. We will
pursue this mission thanks to our high quality
products and services, backed by a constant focus
on innovation, rigorous production standards
and enthusiastic, committed teams that work closely
with eye care professionals.
06

- HIGHLIGHTS -
“OPERATIONAL EXCELLENCE,
INNOVATION, NEW SERVICES:
THE KEYS TO OUR PERFORMANCE”
AN OVERVIEW OF THE
HIGHLIGHTS OF 2011 WITH
PAUL DU SAILLANT AND
LAURENT VACHEROT,
CHIEF OPERATING OFFICERS.
Looking back on 2011 several
major events come to mind
that left their mark not only
on the world but also impacted
our employees and our partners
in their professional, and for some,
personal lives. Despite the tsunami
in Japan, the earthquakes in
New Zealand, the floods in Thailand
or the debt crisis in Europe our teams
pulled together and demonstrated
great energy, flexibility and
determination in implementing
our global strategy.
markets through our local presence,
the development of new partnerships
in countries such as Brazil, Russia,
Tunisia and Morocco and the setting
up of a subsidiary in Colombia.
At the same time we continued our
efforts to capture the growth potential
in mature markets in particular
through unprecedented marketing
initiatives to promote our high value
added products such as Crizal and
Varilux. We also developed integrated
solutions for two major key accounts
and continued the deployment
of our multi-network strategy and
different brands in order to provide
differentiated offers to our customers.
Looking beyond the Lens business,
our Equipment division had a very
“ACCELERATED
DEVELOPMENT IN THE
FAST GROWING MARKETS”
good year with the launch of new
technologies and accelerated growth
in emerging markets. This good
performance shows the dynamism of
the whole optical industry as it invests
in the future.
These achievements, and others that
you will read about in this activity
report, give us strong foundations for
growth and confidence for the
upcoming year.
By focusing on operational excellence
and the launch of our innovations
and new services we performed well
in 2011. We accelerated our
development in the fast growing
“CONTINUED OUR INITIATIVES TO CAPTURE
THE GROWTH POTENTIAL IN MATURE
MARKETS”
ESSILOR 2011
MESSAGE FROM PAUL DU SAILLANT AND LAURENT VACHEROT - 07

- HIGHLIGHTS -
2011
YEAR IN REVIEW
— JANUARY —
— MARCH — >
WORLDWIDE NEW CRIZAL
CAMPAIGN
Launched worldwide, the
new Crizal advertising
campaign illustrates clear
vision in all conditions.
USA ACCESS TO EYECARE
At the Transitions Championship, the
Essilor Vision Foundation provided free eye
examinations for more than 2,000 children in
Florida.
ENVIRONMENT WATER RECYCLING
In partnership with Veolia Water STI, Essilor
developed a unique combination of technologies
for recycling water used in the production of
plastic lenses. This high-performance, ecofriendly
solution was piloted at the BBGR plant
in Sézanne, France.
08

36%
progressive lens
penetration rate
in Canada.
95%
of glasses wearers
who have tried
antireflective
lenses can no
longer do without
them.
— MAY —
— JUNE — >
ASIA GATHERING OF 900 EYECARE
PROFESSIONALS
The Asia-Pacific convention held in Beijing brought
together some 900 eyecare professionals from 17
countries.
FRANCE TESTED AND APPROVED!
Since 1978, Essilor has tested its latest-generation
lenses in real-life conditions with wearers before
launching them on the market. In 2011, Essilor’s
wearer tests protocols were approved by Dr. José-
Alain Sahel’s team at Université Pierre et Marie
Curie in Paris.
CORPORATE LISTENING
TO EMPLOYEES
An internal opinion survey was
conducted of 30,000 Essilor
employees.
WORLDWIDE PLANTS
The Shanghai Essilor Optical
Company plant in China produced
its one-millionth prescription
lens, while the Chihuahua plant
in Mexico celebrated its 25th
anniversary.
ESSILOR 2011
HIGHLIGHTS - 09

- HIGHLIGHTS -
“IN 2011, OUR TEAMS WERE
FOCUSED ON OPERATIONAL
EXCELLENCE AND
BREAKTHROUGH INNOVATIONS”
PAUL DU SAILLANT AND LAURENT VACHEROT
— JULY —
— AUGUST — — SEPTEMBER — >
INDIA EYESIGHT TESTS
In cooperation with the
Shankara Nethralaya
Hospital and Essilor,
the Bangalore International
Airport launched a program
to test the eyesight of taxi
drivers. A total of 2,000
examinations were carried
out over a four-month
period.
WORLDWIDE INNOVATION
IN OUR DNA
Essilor ranked 25th on Forbes
magazine’s list of the world’s
100 most innovative companies.
NEW PRODUCT LAUNCH OF MR ORANGE
After Mr Blue in 2009, Essilor created Mr
Orange, the new digital edging system that has
all the fundamentals of the world’s leading
optical chains in terms of finishing quality,
integrated functions and ergonomics. Its wide
array of functionalities guarantees top results,
whatever the type of lens.
10

For 160 years, opticians have counted on BBGR to go the extra distance. Today, you can count on the
rapid response of our 8 customer service centres and the recognised quality of our French-made lenses.
And with Premier customized services, you’ll enjoy priority delivery, in-store sales training and more. It’s
a partnership designed to take customer satisfaction sky high! www.bbgr.fr
OPTIFOG, THE WORLD’S FIRST
FOG-RESISTANT LENSES,
AND MR. ORANGE, ESSILOR
INSTRUMENTS’ NEW DIGITAL
EDGING SYSTEM, BOTH RECEIVED
AWARDS AT THE SILMO
INTERNATIONAL OPTICS SHOW
IN PARIS.
— SEPTEMBER — — OCTOBER — — DECEMBER —
Looking for the highest level of service?
We won’t let you down!
INNOVATION OPTIFOG
A truly revolutionary
technology, the new range
of Optifog anti-fogging lens
is launched. This innovative
product was awarded a
gold medal at the 2011
SILMO international optics
show in Paris.
Always closer
BBGR NEW BASELINE
BBGR launched
its new baseline:
“Always closer.”
It sums up the
philosophy BBGR
has applied for more
than 160 years: a
commitment to
being completely
dedicated to eyecare
professionals in
order to provide them
with special solutions
and services.
HEALTHCARE WORLD SIGHT
DAY
Essilor took part in World
Sight Day. For the occasion
a wide array of events were
organized, including vision
screening tests and product
demonstrations, and a wealth
of information was provided
to raise awareness around
the world of the importance of
good eyesight.
WORLDWIDE
RESPONSIBILITY
Essilor signed a threeyear
partnership renewal
agreement with the
Special Olympics, a global
organization that helps the
mentally handicapped to find
fulfillment through sports.
The Group has supported the
Special Olympics since 2003.
@
Discover all the Optifog videos
on YouTube:
youtube.com/optifoglenses
ESSILOR 2011
HIGHLIGHTS - 11

- MARKET FOCUS -
EUROPE
> Sales in Europe rose 1.9% on a like-for-like basis, enabling Essilor to
consolidate its positions. As in 2010, sales varied widely from one month and
one country to another.
> NOTHERN AND
EASTERN EUROPE
IMPROVED RESULTS
In a sluggish market in the
United Kingdom, the Group
increased its market share after
winning a supply contract with
a major optical chain. Sales
were also particularly buoyant
in the Netherlands, primarily
with independent opticians,
and Eastern Europe, where most
countries showed growth.
REASONS TO CHOOSE VARILUX, REASONS TO WEAR VARILUX
> IN SWITZERLAND,
ESSILOR STRENGTHENED
ITS OPERATIONS WITH
THE ACQUISITION OF A
MAJORITY INTEREST IN
REIZE, THE LONG-TIME
DISTRIBUTOR OF BBGR.
€1,471m
Revenues in Europe totaled
€1,471 million.
BTB Varilux.indd 1 27/09/11 17:26
> FRANCE
STRONG PERFORMANCE FOR CRIZAL AND VARILUX
In France, the Group continued to build on the depth of its distribution
networks. Essilor increased its sales to independent opticians of high
added value products, including the Varilux progressive lenses and
Crizal anti-reflective lenses, while BBGR recorded strong sales
growth with a number of retail outlets.
> ITALY AND GERMANY
INITIAL SIGNS OF A RECOVERY
In a difficult economic climate in Southern Europe, the Group
strengthened its positions. Italy in particular posted good results
thanks to the synergy of its distribution networks. After a difficult
start to the year, Germany began to recover.
> ALL OF EUROPE BENEFITED
FROM THE SUCCESSFUL
LAUNCH OF THE OPTIFOG
ANTI-FOG LENS AT THE END
OF THE YEAR.
12

- MARKET FOCUS -
ASIA-PACIFIC, AFRICA AND THE MIDDLE EAST
> The Asia-Pacific/Africa/Middle East region accelerated its development in 2011,
with like-for-like growth of 13.0%. The increase reflects the robust performance
of the developed markets (up 5.9%) and on-going solid demand in high-growth
countries (up 15.5%).
> CHINA AND INDIA
VERY DYNAMIC MARKETS
In China, all distribution channels
recorded strong revenue growth.
In India, where the replacement of
glass lenses by plastic lenses is
accelerating, the different market
segments are expanding rapidly.
66%
growth in China
29%
growth in India
> AUSTRALIA
AND NEW-ZEALAND
In Australia and New Zealand,
where sales of anti-reflective
lenses continued to increase, the
Group took advantage of new
business with independent
optometrists and a number of local
distribution chains.
> PROMISING MARKETS: Growth accelerated in Morocco and Tunisia, where deployment
of the multi-network strategy has now begun.
> JAPAN
RECOVERY
In Japan, Essilor enjoyed
solid growth thanks to its
wide range of products and
services that enabled it to
increase its market share
among key accounts.
> SOUTH KOREA AND ASEAN
Essilor’s sales were boosted by growing demand
for progressive lenses. Led by Indonesia, Asean
countries posted a promising improvement in
the product mix.
> MYOPILUX is a lens for children which
reduces the progression of myopia.
ESSILOR 2011
MARKET FOCUS - 13

- MARKET FOCUS -
LATIN AMERICA
> In Brazil, the year saw a further improvement in the product mix, for
both progressive lenses and coatings. In Argentina and Mexico, sales grew
by more than 20%. The other countries in the region saw very good growth.
> BRAZIL
IMPROVEMENT IN
THE PRODUCT MIX
> IN COLOMBIA, the year also saw the opening of a subsidiary
to be closer to customers and develop the market.
> SIX NEW PARTNERSHIPS IN BRAZIL
ESSILOR CONTINUED ITS STRATEGY OF
DEVELOPING ITS NETWORK IN BRAZIL THROUGH
THE ACQUISITION OF FIVE PRESCRIPTION
LABS AND A REGIONAL MANUFACTURER OF
SURFACING MACHINES.
In Brazil, anti-reflective lenses in
particular benefited from the
expansion of the Crizal centers,
which provide independent
laboratories with easier access
to thin film deposit technology.
Essilor also gave a further boost
to its strategy of partnering with
local laboratories, signing five
new partnership agreements in
different parts of the country.
Year after year, the Group
continues to expand its
geographical reach, enabling it to
accelerate the deployment of its
high value-added products.
> MEXICO
In Mexico, where the penetration
rate of progressive lenses remains
low and anti-reflective lenses are
underdeveloped, Essilor successfully
pursued its strategy of improving the
product mix. Growth, which exceeded
20%, was also driven by market share
gains among major distributors.
> ARGENTINA
STRONGER POSITIONS
The Group also enjoyed very strong growth in Argentina where it
increased its market share thanks in particular to the success of the
Varilux and Crizal lenses.
14

- MARKET FOCUS -
NORTH AMERICA
> Essilor had a good year in North America where sales rose
by 3.8% like-for-like.
> THE DISTRIBUTION
NETWORK CONTINUED TO
EXPAND WITH THE
ADDITION OF THREE NEW
PARTNERS, INCLUDING
CSC, A MAJOR
CALIFORNIA-BASED
PRESCRIPTION
LABORATORY.
> UNITED STATES
TRANSITIONS VANTAGE
> NEW CRIZAL CAMPAIGN
The prescription laboratory network benefited from a nationwide advertising campaign
to promote Crizal lenses.
> UNITED STATES
CONSOLIDATED POSITIONS
In the United States, in a market
that saw moderate growth,
Essilor consolidated its positions
with 4.4% like-for-like revenue
growth. This performance
reflected a solid improvement in
the product mix with laboratories
and independent optometrists as
well as with optical chains.
During the year, Essilor of
America strengthened its ties
with leading lens distributors
and signed major supply
contracts. One such contract
involved the large-scale
deployment of a technological
solution enabling a large optical
chain to produce anti-reflective
lenses at its own sales outlets.
This long-term contract is off to
a very good start. In a buoyant
market, sales of variable-tint and
polarized lenses rose sharply.
Similarly, the high-index and
polycarbonate lens segments
also expanded.
> IN CANADA, the year saw mixed results, with a return to stronger
growth in the second half.
In the United States, Essilor and
Transitions introduced the new
Transitions lens for tests with
around 100 eyecare professionals
and a leading optical chain.
Transitions Vantage is the first
and only variable-tint lens to
offer variable polarization when it
darkens, thereby providing
clearer, sharper vision outdoors.
ESSILOR 2011
MARKET FOCUS - 15

- MARKET FOCUS -
READERS
> The Readers division had a contrasting year with like-for-like growth of 1.3%,
equally divided between reading glasses and sunglasses. Following a very lively
first half – and even though consumer sales continued to rise in the second half –
revenue was impacted by extensive inventory drawdowns by large accounts in the
United States.
> SUCCESS
NEW PRODUCTS
> UNITED STATES
STYLEMARK, A MAJOR
PORTFOLIO OF BRANDS
During the year FGXI acquired Stylemark,
which has a large portfolio of licensed
reading and sunglass brands in the United
States. The acquisition will enable FGXI to
enhance relationships with its own and
Stylemark’s customers, drive faster
growth in department store sales and offer
a line of premium children’s sunglasses.
Non-prescription glasses
continued to benefit from the
highly success extensions of the
Microvision and Lightspecs
ranges, which are distributed by
most of FGX International’s large
customers. After being adversely
affected by unfavorable weather
conditions during the high
season, sunglasses sales picked
up at year-end.
€209m
in revenue.
> WORLDWIDE
INTERNATIONAL EXPANSION
FGXI continued to successfully expand in the global marketplace,
increasing its business with existing accounts in Canada and the
United Kingdom and making its first acquisitions in Europe (Polinelli
in Italy and Sight Station in the UK). In Latin America, the company
developed its operations in Chile and Venezuela with the support of
FGX Latin America, its now wholly-owned, Mexico-based subsidiary.
16

- MARKET FOCUS -
EQUIPMENT
> The Equipment division had an excellent year with like-for-like growth of
18.2%. In a market buoyed by the adoption of digital surfacing technology and the
dynamism of all the actors around the world, the division leveraged its extensive
product and service portfolio to increase its market share.
> INNOVATION
TWO TECHNOLOGIES OF THE FUTURE
The year was also rich in innovation with the launch of two new,
highly promising technologies:
- Fast Coating, a technique for depositing thin film by vacuum
sputtering, which significantly reduces the manufacturing times
involved in applying treatments to lenses.
- On-Block Manufacturing, an end-to-end production chain that
is fully integrated and automated and uses a unique lens
blocking technique for each step in the ophthalmic lens
manufacturing process, from surfacing to antireflective coatings.
OBM has been enthusiastically received by industry
professionals.
“OUR EQUIPMENT
DIVISION HAD A VERY
GOOD YEAR WITH 18.2%
GROWTH. THIS IS A VERY
IMPORTANT INDICATOR
OF OUR INDUSTRY’S
DYNAMIC GROWTH, WHICH
IS BEING DRIVEN BY
THE SHIFT TO DIGITAL
SURFACING TECHNOLOGY”
Hubert Sagnières
> TWO NEW ACQUISITIONS
Satisloh acquired a majority stake in CM Equipamentos Ópticos de
Precisão, a manufacturer and regional distributor of ophthalmic lens
surfacing machines based in Petropolis, Brazil. Essilor also acquired
a majority stake in Bazell Technologies, a California-based
manufacturer of equipment for processing water used in lens
production.
€185m
2011 revenue for the Equipment
division.
ESSILOR 2011
MARKET FOCUS - 17

- CORPORATE GOVERNANCE -
AN INTERNATIONAL
EXECUTIVE COMMITTEE
THE EXECUTIVE COMMITTEE, WITH 24 MEMBERS, IS AT THE HEART OF ESSILOR’S CORPORATE
GOVERNANCE SYSTEM. IT SUPERVISES, MANAGES AND ENSURES THE EFFICIENCY OF THE GROUP’S
OPERATIONS AROUND THE WORLD.
9 1
16 20
6 12
5 4
10
15
3
23
18

- EXECUTIVE COMMITTEE -
1 Hubert Sagnières
Chairman and Chief Executive
Officer
7 Carl Bracy
Vice President Marketing &
Business development EOA
13 Norbert Gorny
Senior Vice President Central
Europe
19 Bertrand Roy
Senior Vice President of Strategic
Partnerships
2 Paul du Saillant
Chief Operating Officer
3 Laurent Vacherot
Chief Operating Officer
4 Thomas Bayer
President, Latin America Region
5 Éric Bernard
President of Essilor China
6 Jayanth Bhuvaraghan
President - South Asia, ASEAN
Lab operations & IT - AMERA *
* Africa, Middle-East, Russia and Asia.
8 Claude Brignon
Corporate Senior Vice President,
Worldwide Operations
9 Jean Carrier-Guillomet
President, Essilor of America
10 Patrick Cherrier
President, AMERA Region *
11 Bernard Duverneuil
Chief Information Officer
12 Marc François-Brazier
Corporate Senior Vice President,
Human Resources
14 Réal Goulet
President of Essilor Laboratories of
America
15 Éric Léonard
President, Europe Region
16 Géraldine Picaud
Chief Financial Officer
17 Patrick Poncin
Corporate Senior Vice President,
Global Engineering
18 Thierry Robin
Senior Vice President «Digital
Surfacing Strategic Opportunity »
20 Kevin Rupp
Executive Vice President, Finance &
Administration of EOA
21 Jean-Luc Schuppiser
Corporate Senior Vice President,
Research and Development
22 Beat Siegrist
Chief Executive Officer, Satisloh
23 Éric Thoreux
Corporate Senior Vice President,
Strategic Marketing
24 Carol Xueref
Corporate Senior Vice President,
Legal Affairs and Development
11
21 24 13
7
14 8
17
2
19
22
18
ESSILOR 2011
CORPORATE GOVERNANCE - 19

- MESSAGE FROM XAVIER FONTANET -
“HELPING TO SEE
THE WORLD BETTER”
At a time when the global economy is in a
period of profound transformation, we
are faced with the enormous task of developing
the market in three large, promising
regions: China, India and Latin America. All
have huge potential since their inhabitants still
have little corrective eyewear and the profession
is in the development stage. In the western
world, the ophthalmic lens market will
continue to grow and become more sophisticated
due to aging populations and technological
progress, which is continuing at a sustained
pace. While these challenges will require ongoing
efforts on our part, they are also in our
genetic code.
The success of the Essilor business model is
based on its culture, which was developed following
the 1972 merger of Essel and Silor, two
competing companies that had a mutual respect
for each other. This year, we’re celebrating
the 40th anniversary of the beginning of this
exciting technological, geographic and human
adventure. Today, Essilor employs 12 times as
many people and generates 100 times more
revenue. The keys to understanding Essilor can
be found in the core components of its culture:
mutual trust, respect for expertise and a winning
spirit. These components also represent a
strength that attracts new partners and
enables us to look forward to harmonious development
over the next 20 years.
The partnerships that we are building through
our acquisitions around the world are – like the
original merger – alliances rather than takeovers.
Entrepreneurs and family-held companies
that are well established in their markets,
close to their customers and dedicated to service
are joining us to take advantage of our technological
and marketing resources and global
networks. They provide us with new people, a
different outlook and an in-depth understanding
of their respective countries. This diversity
is for us a source of incomparable wealth.
Helping hundreds of millions of people to see
the world better, every year, also means
provid ing children with access to education,
improv ing productivity in the workplace, making
roads safer and supporting the elderly.
We’re aware that ours is a noble business that
supports the general interest and we’re determined,
along with our eyecare professional
customers, to continue developing and improving
our operations.
Xavier Fontanet
Chairman of the Board of Directors
until January 2, 2012
20

- BOARD OF DIRECTORS -
BOARD OF DIRECTORS
AT DECEMBER 31, 2011
Xavier Fontanet
Chairman and Chief Executive Officer
of Essilor from 1996 to 2009 and then
Chairman of the Board of Directors from
January 1, 2010 to January 2, 2012.
Since this date he has been a Board
Member.
Hubert Sagnières
Chairman and Chief Executive Officer
of Essilor since January 2, 2012 and
Chief Executive Officer from January
1, 2010. He joined Essilor in 1989, and
was appointed Chief Operating Officer in
August 2008.
Philippe Alfroid
Joining Essilor in 1972, he served as
Vice President Financial Control, and
was promoted to Chief Financial Officer
in 1991. He was Chief Operating Officer
from 1996 to June 2009.
Benoît Bazin
Head of the Building Distribution
Sector at Saint-Gobain and Senior Vice
President, Compagnie de Saint-Gobain,
where he also served as Chief Financial
Officer until 2009.
Antoine Bernard de Saint-Affrique
President of Food at Unilever PLC, he
served as Executive Vice President, Skin
Care and Skin Cleansing from August
2009 to September 2011.
Yves Chevillotte
Executive Vice President of Crédit
Agricole SA from 2002 to 2004. He
joined Crédit Agricole in 1969.
Mireille Faugère
Managing Director, Assistance
Publique-Hôpitaux de Paris (AP-HP),
she is also an independent member of
EDF’s Board of Directors, where she
serves as Chairwoman of the Ethics
Committee.
Yves Gillet
He joined Essilor in 1995 as President,
Essilor Spain and a Board Member
representing Valoptec Association.
Yi He
President of Essilor (China) Holding
Company and Board Member
representing Valoptec Association
since September 2010. He joined
Essilor in 1996 as Chief Executive
Officer of Shanghai Essilor Optical
Company in China.
Bernard Hours
Chief Operating Officer of Danone since
2008 and Vice Chairman of the Board of
Directors since 2010.
Maurice Marchand-Tonel
Independent consultant, President
of the European American Chamber
of Commerce, Advisory Director of
Investcorp and director of Faiveley
Transport.
Aïcha Mokdahi
Chairwoman of Valoptec Association
and Essilor’s Supply Chain Director
Europe. She joined the Company in
1976 as product manager in the frames
division, later serving as logistics
manager and sales development
manager.
Olivier Pécoux
Managing Partner and Chief Executive
of the investment bank Rothschild &
Cie, which he joined in 1991. He is also
Chief Executive Officer and member
of the Management Board of Paris-
Orléans.
Michel Rose
Co-Chief Operating Officer of Lafarge
SA, where he was mainly responsible for
the Cement Division, from 2003 until his
retirement in 2008.
ESSILOR 2011
CORPORATE GOVERNANCE - 21

ESSILOR
COMMUNITY
A COMMUNITY OF ENTREPRENEURS, RESEARCHERS AND EYE CARE
PROFESSIONALS… TO HELP SEE THE WORLD BETTER.

ACTIVITY
PARTNERS
FOR BUSINESS
P. 24
RESEARCH
PARTNERS
FOR INNOVATION
P. 34
RESPONSIBILITY
PARTNERS
FOR SOCIAL RESPONSIBILITY
P. 40

PARTNERS FOR
BUSINESS
Essilor has built its success on the ability to work closely
with partners to develop its business around the world.
Through these partnerships, we remain faithful to our values
while creating a community of entrepreneurs based on
shared trust and mutual respect.
24

- PARTNERS FOR BUSINESS -
2strategic acquisitions
in 2011.
383
million euros in
combined full-year
revenue for the 29
acquisitions and
partnership agreements
signed in 2011.
Shamir Optical
> Israel’s Shamir Optical, a
high-profile player in the
ophthalmic optics market,
joined the Essilor family in
2011. In 2012, the partners
will pursue an array of joint
R&D, marketing and
manufacturing projects.
Wanxin Optical
> An Essilor partner in China
since November 2010,
Wanxin Optical is a pioneer
in the ophthalmic optics
industry in a market
estimated at 200 million
lenses. Its revenue increased
by 25% thanks to Essilor’s
contribution in the areas
of technology, marketing
and new products.
Essilor Korea
> The joint venture created
in late 2002 with Samyung
Trading has been beneficial
to both partners, with
sales increasing eightfold
in nine years. Its growth
objectives are based on new
products designed with the
cooperation of Essilor R&D
teams and on emerging
markets.
NIKON-ESSILOR
The joint venture created in Japan by
Nikon and Essilor in 2000 has become
the country’s second largest ophthalmic
company in just a few years. The
partners created a joint research center
in 2009 and tightened their relationship
following the tragic events of 2011.
27
new local partnerships
in 2011.
“OUR JOINT
APPROACH TO
RESEARCH
CLEARLY
REQUIRES A HIGH
DEGREE OF
MUTUAL TRUST”
Makoto Kimura
President of Nikon Corporation
Essilor currently has nearly
50,000 employees who every day
are driving the Group’s development
in 58 countries. This global scope
is the result of a growth strategy
that is underpinned by acquisitions
and partnerships.
Over the past five years, Essilor
has made 128 acquisitions and
is accelerating this strategy,
especially in fast growing markets.
By partnering with local
optical market leaders, Essilor is
strengthening its networks and
increasing its market share.
Through these partnerships the
Group is acquiring the local
presence and responsiveness it
needs to ensure that everyone,
regardless of where they live, can
see better thanks to lenses adapted
to their specific needs. But more
than a means of driving
performance, Essilor’s growth
strategy reflects a philosophy of
integrating new partners while
respecting local cultures and
specificities.
For Essilor, each acquisition
represents much more than just a
financial transaction. The creation of
long-term partnerships promotes
independent management,
entrepreneurship, respect for
people and a better understanding
of the local country. What’s more,
relations with Essilor are
systematically based on a search for
synergies and mutual benefits.
ESSILOR 2011
ESSILOR COMMUNITY - 25

Shamir Optical and Essilor:
partners in innovation
In July 2011, Essilor acquired a 50% stake in Shamir Optical, one of the world’s
leading manufacturers of progressive lenses and molds. This promising partnership
is based on development and innovation.
“SHAMIR’S
CULTURE FITS
SEAMLESSLY WITH
THAT OF ESSILOR. ”
Amos Netzer,
President and Chief
Executive Officer of Shamir
Optical
A
high-profile player in the ophthalmic
optics market joined the extended Essilor
family in 2011. An Israeli company
founded in 1972, Shamir Optical has forged a
solid international reputation thanks to its
high-quality products and innovative
technologies. It is highly regarded by opticians
and laboratories for its responsiveness to
market demand and consumer needs,
particularly in terms of design.
Leading-edge technologies
One of the world’s ten largest lens
manufacturers, Shamir Optical originally
produced bifocal lenses before specializing in
progressives. Today, the company offers a wide
variety of products, from progressive and
single-vision lenses to specialty products, such
as sun and sports lenses. These lenses are
available in a range of indexes and advanced
materials, including polycarbonate and Trivex.
Above all, however, Shamir Optical stands apart
because of its exclusive technologies. It has
developed software based on its own algorithms
that enables the design of progressive lenses
adapted to different environments and activities.
Shamir Optical is also known for its highperformance
IT resources in the areas of
research and manufacturing, like its famous Eye
Point Technology, a powerful tool that simulates
the human eye.
Natural synergies
The alliance between Shamir Optical and Essilor
was well received, both by customers and by the
optical industry as a whole. While maintaining
their respective cultures, the partners have
already created excellent relations by working
—
1972
CREATION OF
SHAMIR OPTICAL
—
$190m
IN REVENUE
—
1,800
EMPLOYEES
26

- PARTNERS FOR BUSINESS -
“ WITH ESSILOR’S SUPPORT, WE HOPE TO
ACHIEVE OUR SALES OBJECTIVES TWICE
AS FAST AS ORIGINALLY PLANNED .”
Uzi Tsur, Chairman of Shamir Optical and Director of Kibbutz
Shamir.
together on joint projects. The partnership
enables the sharing of skills and the pooling of
resources and costs, but even more importantly
it creates opportunities for innovation. In 2012,
the two companies will develop an array of
synergies in research and development,
marketing and production. During the year, both
companies will celebrate 40th anniversaries –
Shamir Optical of its founding and Essilor of the
merger of Essel and Silor.
“OUR EXCELLENT RESULTS IN
2011 – THE FIRST YEAR OF OUR
PARTNERSHIP – PROVES THE VALUE
AND EFFECTIVENESS OF OUR ALLIANCE
WITH ESSILOR.”
Tang Langbao, President of Wanxin Optical
“The partnership with Essilor has had a deep impact
on the development of Wanxin Optical and the
ophthalmic industry in China. The Group has helped
us greatly, not only because of its technologies but
also in terms of manufacturing and product
promotion. We can leverage Essilor’s experience and
expertise to broaden our product range and
strengthen our positions in our core market
segments. Our efforts were crowned with success
this year and, thanks to Essilor, we will continue to
develop our operations both in China and in
international markets.”
Wanxin Optical,
extraordinary vitality
After its alliance with ILT Danyang, Essilor
formed a partnership in November 2010 with
Wanxin Optical, a pioneer in the manufacture of
ophthalmic lenses in China.
In barely one year since partnering with Essilor, Wanxin
Optical has seen its revenue rise by 25%, an impressive
increase for the Chinese manufacturer that has also been
designated the distributor of Kodak lenses in the local market.
But above all, the increase reflects a dynamic growth strategy
and a responsible approach.
Since its founding in 1973, Wanxin Optical has always sought
to develop the ophthalmic lens industry in China by moving
it upmarket. The company, which has more than 2,000
employees, was the first manufacturer of plastic lenses in
China. It has also begun producing high-index lenses.
Moreover, its MR-8 production line, which was brought on
stream in 2011, manufactures some 10,000 pairs of lenses
a day. Wanxin Optical has also been very active on the
marketing front. It was one of the first companies to open a
prescription laboratory in China and to create its own retailer
training program.
A high potential market
Focusing above all on quality, Wanxin Optical has contributed
to the large number of new products launched on the Chinese
market while also ensuring that all needs are met. In addition
to anti-fatigue and antireflective lenses for adults, it also
offers progressive lenses for children that help to slow the
development of myopia. Nearly 900 million people in China
need corrective eyewear, but less than half of them receive it.
Estimated at 200 million lenses a year, the Chinese market
has strong growth potential and represents a strategic
priority for Essilor. And while Essilor is already positioned in
the upscale segment with its flagship Essilor, Crizal, Varilux,
and Nikon brands, Wanxin Optical is the perfect partner for
expanding in the mid-range segment.
ESSILOR 2011
ESSILOR COMMUNITY - 27

- PARTNERS FOR BUSINESS -
“ ESSILOR’S CULTURE
PROMOTES
INDEPENDENCE AND
RAPID DECISION-
MAKING ”
Serge Zins
President and Chief Executive
Officer of Nikon-Essilor
Nikon “Essilor has enabled
us to overcome obstacles.”
Makoto Kimura, President of Nikon Corporation, and Serge Zins,
President of Nikon-Essilor, look back on a mutually beneficial
partnership and on a positive year, despite the tragic events that
struck Japan in 2011.
The joint venture created in Japan
by Nikon and Essilor in 2000
has become the country’s second
largest ophthalmic optics company
in just a few years. “The partnership
has bolstered our positions,” says
Makoto Kimura. “It has helped
to strengthen the Nikon brand
in Japan and to establish it in other
countries as well.”
The keys to success were the
technological and marketing advances
made possible by the alliance, which
involved teams at the highest level.
“Both companies’ management teams
created a climate of trust that fostered
the joint venture’s development,”
says Serge Zins. “By encouraging
informal in-house discussions,
Essilor’s culture promotes
independence and rapid decisionmaking.”
Pursuing basic research together
Building on their initial successes, the
two companies decided to take their
partnership to the next level by opening
the Nikon-Essilor International Joint
Research Center (NEIJRC) in 2009.
Dedicated to basic research on
materials and optics, the Center focuses
on identifying and developing
breakthrough technologies that Nikon
and Essilor can use in their nextgeneration
products. The NEIJRC also
enables teams to compare
complementary approaches and develop
a unique culture that drives innovation.
“ THIS JOINT APPROACH TO RESEARCH
CLEARLY REQUIRES A HIGH DEGREE
OF MUTUAL TRUST ”
Makoto Kimura,
President of Nikon Corporation
Stronger ties in 2011
The past year enabled the two
companies to strengthen their ties
and measure the importance of
Essilor’s support.
“Between the March 11 earthquake
in Japan and the October flooding
in Thailand, 2011 was a very difficult
year,” says Serge Zins.
Nikon was directly affected on both
occasions – in March with the loss
of several employees at its Sendai
production facility and in October
when its plant in Thailand was
flooded.
“Even though we’re still psychologically
scarred by the events, Nikon-Essilor
was fortunate enough to escape
unscathed from the two disasters”
he adds. The teams appreciated
Essilor’s show of solidarity.
“On March 11, we were in close contact
with the Essilor management team,
which provided us with all the
assistance we needed,” says Makoto
Kimura. “We received messages
of support from our colleagues
and partners around the world, and in
April we re-launched our production
operations in Japan”, added Serge Zins.
The Company’s solidity enabled
the joint venture to withstand these
crises and to end the year with
substantial growth. The efforts of
Nikon-Essilor teams also
strengthened the joint venture’s
development in China and in
the AMERA region (Africa, Middle
East, Russia, Asia).
“We’re looking to use the Essilor
distribution network to develop
the Nikon brand in those markets,
like we’ve done in Europe and
Canada,” says Serge Zins. In 2012,
Nikon-Essilor plans to pursue its
growth initiatives in Japan, with
the launch of flagship products like
Varilux and Optifog scheduled for
the second quarter.
28

“OUR RELATIONS WITH
ESSILOR ARE BASED ON
TRUST, TRANSPARENCY AND
MUTUAL RESPECT, WHICH
ARE ESSENTIAL VALUES IN
SOUTH KOREAN CORPORATE
CULTURE.”
C. T. Lee, Chairman, and S. Y. Lee,
President and Chief Executive Officer
of Samyung Trading
Samyung Trading and Essilor,
sharing skills and capabilities
Thanks to its partnership with Essilor, the South Korean company
has become the market leader in just a few years and fully
intends to pursue its growth and development.
When it created a joint venture
with Essilor in late 2002,
Samyung Trading had the
medium-term goal of becoming the
South Korean ophthalmic lens market
leader. That objective has been more
than met, as the company has ranked
number one in its market since 2008.
The past year was especially
favorable for the joint venture, which
became the world’s largest
manufacturer of 1.60 or higher index
lenses, invested heavily in China and
expanded into the global
marketplace.
This enviable success is due in large
part to the support of Essilor, whose
methods are now part of the joint
venture’s DNA. The two partners have
reduced their costs by pooling their
equipment spending and raw
materials purchases. They have also
shared their respective skills in
high-index lens technologies and
antireflective coatings.
Penetrating new markets
Essilor has also played a significant
role in reinforcing the joint venture’s
sales network, with a view to
expanding its operations into
emerging markets like Vietnam. In
2012, the joint venture will pursue
this path with the support of Essilor’s
R&D resources. But the strategy is
above all to move the industry
upmarket with premium-quality
high-index lenses.
ESSILOR 2011
ESSILOR COMMUNITY - 29

- PARTNERS FOR BUSINESS -
India
Two additional laboratories opened
with Sankar & Co
“COOPERATION AND
FREEDOM OF ACTION
IS THE WINNING
FORMULA THAT
UNDERPINS OUR
PARTNERSHIP”
Arumugam Somasundaram,
Essilor Sankar & Co
Before signing a partnership agreement with
Essilor 14 years ago, Sankar & Co knew nothing
about ophthalmic optics. Today, the Indian
company is very well established in its market
thanks to Essilor, which has provided assistance
in defining the strategy, developing its laboratories
and training sales teams. Indeed, 2011 was
the year in which Sankar & Co enjoyed its
strongest growth, led by the launch of five new
products and the opening of two laboratories
in addition to the five already in operation. With
Essilor’s backing, Sankar & Co can think big
and plan other large-scale projects for 2012.
But what has most impressed Sankar & Co since
the partnership was created is the Group’s
humility. That’s because in addition to providing
constant technical and marketing support,
Essilor also allows local managers great freedom
of action. This approach has demonstrated
its effectiveness not only in India but elsewhere
as well.
Morocco
Development program
with L’N Optic
“ESSILOR’S TARGETED
EXPERTISE HAS
ALLOWED US
TO ACCELERATE
OUR PACE OF
DEVELOPMENT”
Lhoussaine Benhamani,
L’N Optic
For L’N Optic, the partnership with Essilor has
clearly made a difference. Following five years of
robust growth, the lens manufacturing laboratory
decided to join forces with a major company to
pursue its development. Essilor for its part was
looking to strengthen its presence in Morocco.
So the partnership agreement signed by the two
companies in 2011 was a natural fit.
Since then, Essilor and L’N Optic teams have
been working in synergy on projects chosen and
managed jointly, while respecting local cultures
and practices. Essilor quickly identified the areas in
which the laboratory needed new capabilities and
those in which it was already perfectly independent.
According to L’N Optic, this judicious balance
between support and confidence is the key to the
partnership’s success.
And success has not been long in coming. In just a
few months, L’N Optic has deployed a full-fledged
brand strategy, introduced the innovative Crizal and
Varilux Digital technologies in the Moroccan market
and trained its sales force. None of the laboratory’s
local competitors have had this opportunity.
30

United States
Technological support
for 21st Century Optics
“EVEN IF I ONLY HOLD
A FEW SHARES, I’M
STILL TREATED LIKE
A PARTNER WHOSE
OPINIONS MATTER”
Ralph Woythaler,
21st Century Optics
Although 2011 was an especially challenging year
for 21st Century Optics, the US laboratory met its
objectives thanks to its partnership with Essilor.
Its executives are very appreciative of their solid
relations with the Group, which always listens
closely to their views on both operational and
strategic issues. More generally, Essilor’s
technical and financial support provides them with
the strength they need to build the business and
increase their market share. The Group’s research
and development resources will also prove
indispensable for 21st Century Optics’
development in 2012, in particular by enabling
them to shift very quickly to digital surfacing
processes and the Crizal antireflective coating
technology.
Brazil
Tecnolens gives the
distribution network a boost
“ESSILOR HAS
ENABLED US TO
SEE FARTHER AND
BIGGER”
Fernando Antonio Ribeiro Silva,
Tecnolens Lab
Becoming an Essilor partner in 2010 was a major
change for Tecnolens.
In one year, the Brazilian laboratory has
leveraged the Group’s support and expertise to
improve its management methods and optimize
its processes, especially in lens mounting
and antireflective coating techniques. This
acceleration has galvanized Tecnolens’s highly
committed teams, who are motivated by new
growth prospects and appreciative of the close
relations forged with Essilor Brazil
representatives.
In 2011, the Group acquired majority stakes in
Unilab, Repro, Orgalent, Cientifica and Optilab,
important local prescription laboratories.
These strategic transactions strengthen Essilor’s
positions in Brazil by enabling the Group to
deepen its distribution network and speed up
the deployment of the portfolio of products and
services for its optician customers and to the
benefit of all the Brazilian customers.
ESSILOR 2011
ESSILOR COMMUNITY - 31

- PARTNERS FOR BUSINESS -
1FOR
141,000
In Indonesia, there is
one eye care profession
for every 141,000 people.
CUSTOMER
FEEDBACK
1FOR
6,400
In the United States,
there is one eye care
professional for every
6,400 people.
“Essilor has given us the
resources to become a truly
nationwide banner”
Club Platine was
created thanks to
Essilor. At its Bangkok
convention in 2007, the
Group helped fully
independent Indian
opticians with strong
regional positions to join
together as Club Platine to
create a nationwide optics
banner. Since then, Essilor
has supported our
development by providing
us with considerable
resources, such as the
Absolute Retail program
that has enabled us to more
fully understand market
trends and customer
needs.
With Essilor’s backing, 2011
was an especially lively,
eventful year in terms of
communication. Club
Platine launched its second
major promotional
campaign – The Great
Indian Optical Festival –
which reached a large
number of consumers.
Essilor’s 2011 Asia-Pacific
Convention gave us an
opportunity to discover the
latest innovations as well as
new practices to drive our
development. In addition,
Club Platine for the first
time leveraged its unified
structure to make bulk
purchases from several
frame manufacturers.
In 2012, Club Platine is also
counting a lot on Essilor’s
support as it continues to
strengthen its positions in
the Indian market. We hope
to benefit from feedback
from other countries and
exclusive solutions to
extend our customer base
and increase revenue.
But above all, our access
to Essilor’s latest
technologies and new
products will enable us
to stand apart from the
competition and provide
customers with the
market’s best offering.
The Club Platine management
team in India
32

I
n its 15 years in China,
Essilor has played a
significant role in
developing the ophthalmic
optics market. While the
Company has of course
popularized plastic lenses,
it has also helped eyecare
professionals to understand
the true value added of
high-technology lenses, thus
narrowing the gap between
China and other countries.
From a practical standpoint,
how has the partnership
functioned? In 2011, the
Company provided opticians
with training, especially in
sales and marketing, which
considerably improved the
performance of store
managers. Essilor has also
been involved in community
support initiatives. As part of
the Hope program for schools,
the Company has offered eye
tests and corrective lenses for
underprivileged pupils in
some parts of the country,
while continuing to help our
hospital carry out prevention
campaigns. As a result,
Essilor clearly serves as a
model for other ophthalmic
lens manufacturers. In 2012,
Chinese manufacturers
expect Essilor to pursue its
commitment to our market.
To achieve excellence, we
need resources and
educational tools that will
enable us to train a large
number of highly qualified
opticians. We feel that people
are more important than
products, the community is
more important than the
individual, and social
well-being is more important
than profit.”
Jie Lie, Director of the Tianjin Eye
Hospital in China
“Essilor serves as a model
for other ophthalmic
lens manufacturers”
“Innovation is the key to
staying a step ahead in a highly
competitive market”
As independent
opticians, we clearly
have to create
competitive differentiation
with respect to products
and services. That’s the key
to success and growth, and
innovation is critically
important to achieving that
goal. It enables us to stay a
step ahead in a highly
competitive market. And
that’s exactly the kind of
advantage that Essilor can
provide, in particular with
its Varilux technology,
which showcases our
special optical skills and
capabilities.
Thanks to tools like
Visioffice, which measures
individual patient
parameters, and Eyecast,
we can offer our customers
personalized advice.
Essilor also supports us
with invaluable training,
marketing and
communication resources.
Our sales representatives
receive training for all
products. In addition, the
loyalty program helps us
enhance our customer
relations. As for the TV
advertising campaigns, they
support our communication
plans by immediately
generating store traffic.
In line with its commitment
to sharing experience,
Essilor allows us to access
information about our
industry, learn about best
practices that can be
applied to our operations
and take advantage of
solutions deployed by
colleagues to solve certain
problems.
Rob Van De Leeuw,
Optician in the Netherlands
ESSILOR 2011
ESSILOR COMMUNITY - 33

PARTNERS FOR
INNOVATION
Innovation is part of Essilor’s genetic code. Our research and
development teams are driven by a commitment to sharing
expertise, based on openness and an extensive network of
academic and industrial partners.
34

- PARTNERS FOR INNOVATION -
45%
of Essilor revenue is
generated by products
less than three years
old.
235
new products in 2011.
Creativity inside!
> In June 2011, Essilor
launched an in-house
contest intended to
stimulate innovation. In
response, more than 3,000
employees submitted their
ideas. Of the 270 projects
presented to the jury, six
were chosen and will now be
pursued through research
and development programs.
630,000
product references.
3 Innovation and
Technology Centers
> To strengthen its capacity for
innovation, Essilor launched a
construction program with the
goal of bringing together its
R&D and engineering teams in
three Innovation and
Technology Centers. Located
in Europe (Créteil, France), the
United States (Dallas, Texas)
and Singapore, these facilities
will strengthen synergies
among teams.
MORE THAN
5,000
exclusive patents.
“PARTNERSHIPS ARE ESSENTIAL
FOR TAKING ADVANTAGE OF
POTENTIAL BREAKTHROUGH
TECHNOLOGIES UPSTREAM.”
Jean-Luc Schuppiser
Corporate Senior Vice President, Research and Development, Essilor
Innovation is the driving force
behind Essilor’s strategy and
the cornerstone of its excellent
relations with opticians and
consumers alike. To provide
technological solutions and
innovative services, the Group
is leveraging a wider range of
expertise thanks to its dynamic
partnership strategy. It has signed
around one hundred scientific
cooperation agreements with
universities, public laboratories,
leading industrial groups and
innovative small and mid-size
companies. These agreements
are diverse in form. Examples
include the long-standing,
multidisciplinary partnership
with France’s National Scientific
Research Center (CNRS),
funding for a chair dedicated to
visual perception and aging at
the University of Montreal and
a research and development
joint venture with Nikon. Shared
intelligence has enabled Essilor
to deepen its understanding of
the visual system, eye diseases,
lens coatings and materials. It is
also a source of improvement that
allows the Group to upgrade its
capabilities with more advanced
technologies from other fields.
ESSILOR 2011
ESSILOR COMMUNITY - 35

- PARTNERS FOR INNOVATION -
INNOVATION, AN ESSILOR
TRADEMARK
SINCE THE 1950s, WHEN VARILUX LENSES CHANGED DAILY LIFE FOR MILLIONS OF PRESBYOPES,
THE GROUP HAS CONSTANTLY INNOVATED. ESSILOR LEVERAGES ITS NETWORK
OF PARTNERS TO BRING TO MARKET INCREASINGLY HIGH-PERFORMANCE PRODUCTS AND SERVICES.
R&D MANAGEMENT EXPLAINS THE GROUP’S STRATEGY.
From progressives to plastic,
antireflective, anti-smudge,
anti-scratch and variable-tint
lenses, Essilor has produced a steady
stream of technological innovations.
“The spirit of innovation is deeply
engrained in Essilor’s culture,” says
Jean-Luc Schuppiser. “It’s also
our responsibility as a global leader
to create value that benefits
consumers and opticians. We also try
not to overlook any opportunity to
innovate over the short-term and
even more importantly the medium
and long-term. That’s what underpins
our research and development
partnership strategy.”
From identification
to cooperation
This strategy is based on a proven
approach. Essilor researchers conduct
a technology watch to discover
innovations that might be of interest
to the Group. They then identify the
team or teams capable of harnessing
these technologies.
“We commission the team to produce
a study on a specific topic and we
then use its work to develop new
products and services,” explains
Jean-Luc Schuppiser.
Nearly 95% of Essilor’s research
partnerships fit this model. In some
cases, the advantages of an alliance
are so great that joint laboratories
are set up. Examples include
facilities in Toulouse with France’s
National Scientific Research Center
(CNRS), in Grenoble with the French
Atomic Energy and Alternative
Energies Commission, at the
University of Montreal, where Essilor
funds a chair dedicated to visual
perception and aging, and in
Shanghai. With Nikon, Essilor has
gone even further, setting up the
Nikon-Essilor International Joint
Research Center, which focuses
on innovative and breakthrough
technologies developed from
the partners’ respective areas
of expertise – cameras and optical
photolithography equipment
for Nikon and ophthalmic optics
for Essilor.
36

“Regardless of the degree of synergy
developed, all partnerships are
monitored on a day-to-day basis by
one of the three Innovation and
Technology centers that we’ve created
in France, the United States and
Singapore,” adds Gilles Le Saux,
Worldwide R&D Optics Manager.
A broad array of partners
“Partnerships are essential for us,
given the ophthalmic lens industry’s
limited research resources compared
with certain other industries,” says
Jean-Luc Schuppiser. “With the aid of
fundamental research conducted in
other sectors, we can take advantage
of breakthrough technology
opportunities far upstream and adapt
them to our business.”
The plastic lens, for example, was
developed from fundamental research
conducted by chemists and plastic
technology experts. Anti-scratch
coatings owe a lot to the paint and
varnish industries, while antireflective
lenses were developed using vacuum
technologies from the
microelectronics sector. Digital
surfacing technology used in lens
manufacture comes directly from the
>
A HISTORIC PARTNERSHIP WITH THE CNRS
Throughout its 20-year
partnership with France’s
National Scientific Research
Center (CNRS), Essilor has
pursued innovative research
projects in the area of eyesight
and optical components. The
partnership was reinforced in
2003 with the signing of a
framework agreement to create
joint laboratories and research
teams that will make it easier to
compare and exchange ideas
and share skills. Teams of
A STRATEGIC ALLIANCE WITH NIKON
Essilor and CNRS researchers
work together on projects in the
fields of chemistry, physics,
mathematics, engineering, life
sciences and information and
communication technologies.
Most of the projects focus on
chemistry, materials and
micro- and nanotechnologies
Building on the commercial success of the joint venture created
in 2000 with Nikon, Essilor invited its partner to extend their
cooperation by developing a joint research unit. As a result, a
second joint venture was set up in 2009 called the Nikon-Essilor
International Joint Research Center (NEIJRC). In this way,
Essilor can pursue advanced optics and materials research while
benefiting from Nikon’s leading-edge innovation capabilities in
these fields. By leveraging the skills of Japanese and French
engineers and their respective R&D cultures, NEIJRC creates
intellectual property rooted in basic technological concepts.
Essilor and Nikon can then integrate these concepts to develop
future generations of products.
ESSILOR 2011
ESSILOR COMMUNITY - 37

- PARTNERS FOR INNOVATION -
500
The number of
Essilor researchers
worldwide.
1/ Cellular organization of
the retina.
2/ Interaction between retinal
astrocytes and the vascular
network.
1
2
“OPTIFOG REPRESENTS
A UNIQUE COMPROMISE
BETWEEN INCOMPATIBLE
PHYSICAL PROPERTIES.”
>
digital industry. Because of these
developments, optical lens
manufacturers increasingly work with
partners from different professions
and with different skills. In recent
years, Essilor has signed a number of
cooperation agreements with medical
research centers, especially for
neuroscience programs. One such
example is the partnership with the
Institut de la Vision at the Quinze-
Vingts Hospital’s ophthalmology
center in Paris.
“The Institute is one of the most
important integrated eye disease
research centers in Europe,” says
Denis Cohen Tannoudji, R&D
Disruptive Manager. “We’re involved in
projects with two of its units: a
specialized laboratory on vision and
aging, which studies eye movements,
image formation on the retina and
neuronal information processing, and
the Descartes Consortium, whose
mission is to devise an innovative
offering of preventive, palliative and
curative solutions for low vision. This
therapeutic approach has two
advantages. It enables us to enhance
our understanding of eyesight and to
increasingly personalize our offering,
which has been identified as a
strategic future growth path for
Essilor.”
Breakthrough technologies
Thanks to its partnership strategy,
Essilor launched 235 new products in
2011. What’s more, nearly 45% of the
Group’s revenue is generated from
products that have been on the market
for less than three years. However,
2011 was also noteworthy for a true
scientific breakthrough that typifies
Essilor’s tradition of innovation: the
launch of the Optifog range of highperformance
anti-fog lenses. The
Group is also developing two other
new products that integrate leadingedge
technologies: Crizal UV lens and
a new generation of Varilux lenses that
will soon be introduced into market.
INNOVATING TO SATISFY
EYEGLASS WEARERS
The Group has forged partnerships with
optometry schools, which carry out tests
to gauge consumer satisfaction in
real-life situations. In 2011, Essilor’s
testing protocols were approved by
Pr. José-Alain Sahel’s team at Université
Pierre et Marie Curie in Paris.*
* Professor Sahel does not receive any remuneration for the
validation of these protocols
38

90%
More than 90% of eye
care professionals in
the world would like
to have an anti-fog
solution.
74%
of eyeglass wearers
do not believe that
a clear lens can
protect their eyes
from UV rays.
THE OPTIFOG REVOLUTION
After many years of research,
Essilor has introduced
the first lens to offer
long-lasting fog-free vision.
The anti-fog lens is a true
breakthrough and represents
a world first for the Group.
When wearers move from a
cold to a warm environment,
fog systematically appears as
the humidity condenses in
miniscule drops of water on
lenses. This phenomenon is a
constant bother to eyeglass
wearers that can occur when
they are, for example, driving,
cooking, working or playing
sports. Essilor has found
a solution for the 1.2 billion
consumers affected by
this problem with its new
innovation, which is the result
of an intensive research and
@
See all the Optifog videos
on YouTube :
youtube.com/optifoglenses
development program that
successfully overcame the
incompatibility of hydrophobic
and hydrophilic physical
properties. The anti-fog
molecules integrated in the
Optifog lens are activated
by a separate product called
Optifog Activator. Unlike
with other lenses, water
droplets are spread out
across the surface creating
an invisible film of water
that guarantees clear,
long-lasting, fog-free vision.
ENHANCED UV PROTECTION
Crizal UV is the market’s first corrective lens that prevents
ultra-violet rays from entering the eye, regardless of
whether they come through the lens or are reflected by
the back of the lens.
“Lenses correct vision problems but they also do much more,
such as protect the eye from the sun’s ultraviolet rays,”
says Franck Lestournelle, Worldwide R&D Physics Chemistry
Manager. “Today, nearly all lenses provide UV protection
but only for rays coming through the front of the lens. Until
now there was no solution for protecting the eyes from UV rays
entering from the side or the back that reflect off the back
surface of the lens. To position ourselves in the forefront
of research and development, we worked with independent
organizations to co-develop the Eye-Sun Protection Factor,
an index that measure lens UV protection. Scaled from 0 to 50,
the index informs consumers of the level of UV protection for
both clear and sun lenses.”
@
For more about the Eye Sun
Protection Factor index:
www.espf.com
ESSILOR 2011
ESSILOR COMMUNITY - 39

PARTNERS FOR
SOCIAL RESPONSIBILITY
Affecting half of the world’s people, vision problems
have major consequences for individuals and for
society as a whole. Essilor is pursuing initiatives
around the world to help improve this situation and
is committed to continuing and broadening its efforts
in the future.
40

- PARTNERS FOR SOCIAL RESPONSIBILITY -
“HELPING OTHERS TO SEE
THE WORLD BETTER IS A
WORTHY GOAL THAT OUR
TEAMS ARE PURSUING
EVERY DAY”
Hubert Sagnières
@
For more informations:
www.essilor.com
section Group >
sustainable enterprise
300,000
The number of people
tested in India over the
past eight years thanks
to mobile eyeglass units
deployed by Essilor.
Lions Club of
Madagascar
> Essilor has joined forces
with the Lions Club of
Madagascar to help set up
an eyeglass dispensary at
the Antananarivo Hospital’s
cataract surgery center.
90%
of illiterate adults
suffer from poor
vision.
$270bn
The loss of productivity
worldwide due to poor
vision.
Source : OMS
A global challenge
> Poor eyesight is a
worldwide economic
challenge. Of the world’s
7.2 billion people,
4.2 billion have poor vision
and 2.5 billion have no
visual correction. Essilor,
which has as its mission
“helping to see the world
better,” has a key role
to play in addressing this
problem. As part of
its strategy, the Group
has fully assumed
its leadership role as
a socially responsible
company.
2.5 billion people see the world
poorly and have no corrective
eyewear. The world’s most
widespread handicap, poor vision
adversely impacts the quality of life
and often isolates people. It
reduces the opportunities for
children to learn and productivity
for people in the workforce, while
making the elderly more dependent
and driving more dangerous for
everyone. It also reduces access to
knowledge, culture, sports and
leisure activities, yet is too often
wrongly seen as a minor problem.
In addition to the enormous human
cost, the problem is also very costly
for society. The world leader in
ophthalmic optics, Essilor realizes
the enormity of the challenge of
effectively combating poor eyesight.
In addition to its own initiatives, the
Group works continuously with
other stakeholders to deploy
effective solutions.
ESSILOR 2011
ESSILOR COMMUNITY - 41

NICHOLAS,
KANSAS CITY, USA
ESSILOR VISION FOUNDATION
Created in 2007 in Dallas, Texas, the Essilor Vision Foundation screens disadvantaged children to
detect vision problems. Thanks to the Kids Vision for Life program, more than 70,000 children have
been tested and 15,000 pairs of glasses have been distributed. The Foundation also leads the Adopt-a-
School program, an initiative in which Essilor employees work directly with local schools.
42

MIRANDA,
JERSEY CITY, USA
SPECIAL OLYMPICS
Since 2003, Essilor has been the exclusive supplier of corrective lenses for athletes taking part
in the Special Olympics-Lions Club International Opening Eyes program. Its purpose is
to improve the eyesight of mentally challenged athletes by organizing eye examinations and offering
corrective lenses, protective lenses for sports and medical follow-up for those in need.
In ten years, the Group has provided over 100,000 corrective lenses through the program.
ESSILOR 2011
ESSILOR COMMUNITY - 43

YANG LIN,
CHANGSHA, CHINA
MOBILE EYE CARE CENTERS
In China, Essilor has partnered with hospitals to create mobile centers that provide information and
conduct eye exams and product demonstrations. In 2011, a total of 35 mobile eye care events were
held in cities throughout China. Following a free eye test, people with vision problems are directed to
specialized hospitals for a more in-depth examination.
44

ÉLISABETH BOURDILLON
AND JEAN-JACQUES LESEINE,
MARSEILLE, FRANCE
OPTIQUE SOLIDAIRE
Essilor has teamed up with ophthalmologists, opticians, complementary health insurance providers,
frame and lens manufacturers and other optical partners to create Optique Solidaire, an association
that helps to provide the disadvantaged with highly quality optical equipment manufactured in France.
The association focuses on people aged 60 and over, who are eligible for a complementary health
insurance policy. Beneficiaries are entitled to an eye check-up with no extra add-on fees as well as a
frame fitted with progressive lenses.
ESSILOR 2011
ESSILOR COMMUNITY - 45

- FINANCIAL RESULTS -
A YEAR OF SUSTAINED,
BALANCED GROWTH
IN 2011, THE OPHTHALMIC OPTICS MARKET REGAINED MOMENTUM IN DEVELOPED COUNTRIES AND
MAINTAINED ITS GROWTH DYNAMIC IN FAST GROWING MARKETS.
Essilor leveraged its innovative products and services and
its operational efficiency to increase its market share.
Overall, the Company introduced 235 products across all market
segments, in particular Optifog, the new category of anti-fog
lenses. Long-term sales contracts were implemented with
leading optical chains in the United States and Europe.
The laboratory equipment business turned in an excellent
performance.
Deployment of the acquisitions strategy was also accelerated,
enabling Essilor to extend its presence in fast-growing markets
and strengthen its positions in its three operating divisions. The
year also saw the acquisition of Shamir Optical, an innovative
ophthalmic optics company in the mid-range segment. In the
Readers division, FGX International acquired Stylemark, a US
market leader in non-prescription glasses.
In all, 29 acquisitions and partnerships were signed during the
year representing €383 million in additional full-year revenue.
46

9.8% €192m €463m
Revenue rose by 9.8%
excluding the
currency effect
and 5% like for like.
Growth was led
by fast growing
countries and
the Equipment
division.
Capital spending
increased by 55% in
2011 and represented
4.6% of revenue.
In particular, this
expenditure involved
projects to increase
production capacity
and to build new
Innovation and
Technology Centers
in France and
the United States.
That’s the amount
of free cash flow
after capital
expenditure and
change in working
capital requirement.
Free cash flow
covered acquisitions
made in 2011.
REVENUE BY BUSINESS
REVENUE UP 9.8 % EXCLUDING THE CURRENCY EFFECT
Asia
Oceania
Africa
Middle East
13.3%
Latin
America
5.9%
5.0%
Readers
4.4%
Equipment
Europe
35.1%
3,892
+5.0%
+2.5% -2.1%
+2.3% 4,190
Total Revenue
€ 4,189.5m
2010 Like-for-like Bolt-on Strategic Currency 2011
change
acquisitions
In € millions and as a % of revenue.
acquisitions
effect
CONTRIBUTION MARGIN* MAINTAINED AT A HIGH LEVEL
18.1%
18.1%
17.9%
North
America
36.3%
90.6%
Lenses and optical
instruments
593
2009
In € millions and as a % of revenue.
705
2010 2011
* Operating profit before compensation costs of share-based payments,
restructuring costs, other income and expense and goodwill impairment.
748
ESSILOR 2011
FINANCIAL RESULTS - 47

- FINANCIAL RESULTS -
29 128
acquisitions and In five years, the
partnerships signed Group has signed
in 2011 representing 128 acquisitions
an additional €383 and partnerships
million in full-year around the world.
revenue.
ACQUISITIONS BY REGION
NORTH AMERICA
EUROPE
Others acquisitions
―Equipment
―Readers
Canada
― Fundi Vision Optical
Laboratory
United States
―CSC Laboratories
―Professional Ophtalmic
Laboratories
―Caveo Optical
―Bazell Technologies
Mexico
―AAiJoske’s
LATIN AMERICA
Dominican
Republic
―Opti Express
Switzerland
―Reize
MIDDLE EAST - AFRICA
Brazil
―Cientifica
―Orgalent
―Repro
―Comopticos
―Unilab
―CM Equipamentos
Opticos de Precisão
United Kingdom
―Framed Vision Limited
(Sight Station)
Marocco
―L'N Optic
―Optiben
―VST Lab
―Optik Mekk
Italy
―Polinelli
India
―GKB Hi-Tech
―Enterprise
Ophtalmics
Private Ltd
Russia
―Optik Mekk
China
― Jiangsu Youli Optics
Spectacles Co Ltd
―Shandong Wholesaler
Taïwan
―Trend Optical
Thailand
―JWL Phuket Lab
ASIA - OCEANIA
Australia
―Precision Optics
STRATEGIC ACQUISITIONS
STYLEMARK
SHAMIR OPTICAL
48

14.6%
Gearing (net debt to
equity) was below
15% at year-end
2011, demonstrating
the Company’s robust
financial position.
13%
That’s the average
annual increase in
earnings per share
over the past five
years.
PROFIT ATTRIBUTABLE TO EQUITY HOLDERS
OF ESSILOR INTERNATIONAL UP 9.4%
11.9% 11.9%
391
462
12.1%
506
EARNINGS PER SHARE UP 10.7 %
€1.89
€2.20
€2.44
2009 2010 2011 2009
2010
2011
In € millions and as a % of revenue.
ROBUST IMPROVEMENT IN CASH FLOW*
A SOLID BALANCE SHEET TO FINANCE
GROWTH
586
676
723
2,735
3,044
3,454
Shareholders’ equity
296
506
Net debt
2009 2010 2011 2009
2010
2011
-93
In € millions
*Net cash from operating activities before changes in working capital.
In € millions.
ESSILOR 2011 FINANCIAL RESULTS - 49

- STOCK MARKET -
MARKET
PERSPECTIVE
THE ESSILOR SHARE ROSE BY 13.2% IN 2011, REFLECTING THE COMPANY’S ABILITY
TO CREATE SHAREHOLDER VALUE YEAR AFTER YEAR.
During the year, the shareholder base
became increasingly international, with
two-thirds of all institutional investors now living
outside France. This development reflects senior
management’s commitment to reaching out to
investors through road shows and conferences,
as well as the increase in the number of global
brokers that follow the Essilor share.
Essilor won the 2nd Grand Prix Boursoscan
in 2011. The 7,500 participating investors
hailed the accessibility and relevance of the
information posted at www.essilor.com.
ESSILOR RANKS AT THE TOP
Essilor and CAC 40 index performance
120
60 I
31/12/10
3rd IN 2011
Essilor
CAC 40
I
31/12/11
180
8th FOR 3 YEARS
Essilor
CAC 40
19
For the 19th year in a row,
Essilor paid its
shareholders a higher
dividend than in the
previous year.
60 I
01/01/09
180
60 I
01/12/06
01/05/09
I
I
01/09/09
01/01/10
I
3rd FOR 5 YEARS
01/09/07
I
01/06/08
I
I
01/05/10
I
01/03/09
01/09/10
I
01/12/09
I
I
01/01/11
01/05/11
I
01/09/10
I
I
01/09/11
Essilor
CAC 40
I
01/06/11
50

SHAREHOLDER AND
INVESTOR CONTACTS
Véronique Gillet
Senior Vice President,
Investor Relations
Sébastien Leroy
Financial Communications
Manager
Phone : +33 (0)1 49 77 42 16
Mail address :
invest@essilor.com
SHARE INFORMATION
The Essilor share is included
in seven leading stock market
indexes:
CAC 40 / Euronext 100 / Euronext
FAS IAS® / ASPI / FTSE4Good /
DJSI / Low Carbon 100 Europe®
The shares are elegible for the
SRD deferred settlement system
and for PEA equity savings plans.
Main codes and symbols:
ISIN : FR0000121667
Reuters : ESSI.PA
Bloomberg : EI.FP
FINANCIAL
INFORMATION
www.essilor.com,
« Shareholders » and « Press »
sections
SHAREHOLDER STRUCTURE BY TYPE OF INVESTOR
INSTITUTIONAL INVESTORS BY REGION
9.3%
Retail
2.5% investors
Treasury stock 8.4%
Internal shareholders*
29%
United Kingdom
10.7%
Rest of Europe
3.3%
Rest of the world
55.1%
Non-French
resident
institutional
investors
24.7%
French-resident
institutional investors
25.3%
North America
31.7%
France
*Including employees, retirees and partners
In € 2011 2010 2009 2008 2007
High 57.75 51.17 42.00 44.39 47.50
Low 46.00 40.84 26.08 26.87 40.10
Closing on
54.55 48.17 41.75 33.57 43.65
December 31
Market capitalization
at December 31
(in €billion)
11.67 10.20 9.00 7.08 9.07
Dividend 0.85* 0.83 0.70 0.66 0.62
*Submitted to shareholders’ approval at the May 11, 2012 Annual Meeting.
ESSILOR 2011 FINANCIAL RESULTS - 51

- FINANCIAL RESULTS -
2007 – 2011 KEY FIGURES
In € millions 2011 2010 2009 (1) 2008 2007
INCOME STATEMENT
Revenue 4,190 3,892 3,268 3,074 2,908
Gross margin (2) as a % of revenue 55.4 55.5 56.1 56.9 57.6
Operating expense as a % of revenue 37.6 37.4 37.9 39.0 39.4
Contribution from operations (3) 748 705 593 551 527
Contribution from operations as a % of revenue 17.9 18.1 18.1 17.9 18.1
Operating profit 683 618 550 515 505
Net profit attributable to equity holders
506 462 391 382 367
of Essilor International
Net margin 12.1 11.9 11.9 12.4 12.6
CASH FLOWS
Net cash from operating activities 668 619 510 497 492
Purchases of property, plant and
205 140 125 184 228
equipment and intangible assets
Acquisitions of financial investmets (4) 527 888 229 570 188
Dividends paid (5) 172 146 136 129 113
BALANCE SHEET
Equity attributable to equity holders
3,325 3,001 2,713 2,351 2,156
of Essilor International
Intangible assets and property, plant
3,420 2,900 2,085 1,974 1,453
and equipment, net (excluding non-current
financial assets)
Borrowings 916 688 365 650 468
Net debt -506 -296 93 -112 260
RATIOS (as a %)
Return on assets (ROA) 16.2 18.2 (6) 20.3 20.8 26.9
Return on equity (ROE) 15 15.5 14.6 16.4 17.1
Net debt (cash) to equity -15.2 -9.9 3.4 -4.7 12.0
PER SHARE DATA (in €)
Net assets (7) 16.57 14.58 12.97 11.43 10.39
Basic earnings per share 2.44 2.20 1.89 1.85 1.78
Diluted earnings per share 2.41 2.18 1.88 1.81 1.74
Net dividend 0.85 * 0.83 0.70 0.66 0.62
OTHER
Employees 48,700 42,704 34,759 34,320 31,534
Number of shares at December 31 (8) 214,038,296 211,655,342 215,509,972 211,019,922 211,279,315
* Submitted to shareholders for approval at the May 11, 2012 Annual Meeting (1) Adjusted for acquisition-related costs in accordance with IFRS 3.
(2) Revenue less cost of sales.
(3) Operating profit before compensation costs of share-based payments, restructuring
costs, other income and expense, and goodwill impairment.
(4) Including buyback of treasury stock and OCEANE convertible bonds.
(5) Dividends paid out of prior-year profit by Essilor International.
(6) Including FGXI and Signet Armorlite acquired en 2010.
(7) Equity including minority interests / Number of shares net of treasury stock.
(8) Including treasury stock.
52

RAES011_couv_docref_FR_maq_GREY.indd 1 13/04/12 15:06
DOCUMENT
DE RÉFÉRENCE
2011
www.essilor.com
2011 Registration Document
available on request
from Essilor headquarters
and can be downloaded
from www.essilor.com
Crizal ® , Crizal ® Alizé ® , Crizal Easy, Crizal Forte ® , Crizal Forte TM UV, Crizal ®
Sapphire, Essilor ® , Essilor ® Azio ® 360°, Eyecode, Kappa Ultimate Edition,
M’Eye Touch ® Mr Blue ® , Mr Orange TM , Optifog, Varilux ® , Varilux Comfort ® ,
Varilux Comfort ® New Edition, Varilux ® India 360°, Varilux Physio ® , Varilux
Physio 2.0 ® , Varilux Physio ® Enhanced, Varilux ® Kan, Vision Haute Résolution,
Visioffice ® , W.A.V.E. Technology, Xperio ® , are trademarks filed or registered in
the name of Essilor International.
Anateo ® , Anateo ® Mio, Neva ® Max and BBGR are trademarks registered in
the name of BBGR. Nikon is a trademark registered in the name of Nikon
Corporation. FGXI holds licenses for brands such as Reebok ® , Disney ® , Nine
West ® and Dockers ® . Transitions ® and Transitions ® Vantage TM are trademarks
filed or registered in the name of Transitions Optical Inc. Trivex ® is a trademark
registered in the name of PPG Industries Ohio, Inc. Microvision and Lightspecs
are trademarks owned by FGX International. OBM TM On-Block Manufacturing is
a trademark filed by Satisloh. Global Value ® is an analysis model registered by
BMJ Ratings.
Photo credits: Essilor international photo library / Raphaël Dautigny / Fotolia /
Tim Graham, Getty / Patti Mc Conville, Getty / Matthew Scholey, Getty /
Snaptitude, Fotolia / Siri Stafford, Getty
Creation and layout:
This document is printed on paper certified by the Forest Stewardship Council.
FSC certification guarantees compliance with the rules of sustainable forestry
and monitoring until the final distributor.

Essilor International
Compagnie Générale d’Optique
147 rue de Paris
94220 Charenton-le-Pont
France
Phone: + 33(0)1 49 77 42 24
www.essilor.com