Universal
Registration
Document
2021
Contents
4 | ||||||
1.2 | History | 16 | ||||
1.3 | The eyecare and eyewear industry | 19 | ||||
1.4 | Meeting global demand for eyecare | |||||
and eyewear | 20 | |||||
1.5 | Simplified organizational chart | 48 | ||||
1.6 | Risk factors | 49 | ||||
AFR |
1.7 Main characteristics of the risk management and internal control systems implemented
by the Company for the preparation and processing of accounting
and financial information | AFR | 75 | |||||
2 | EssilorLuxottica | 5 | |||||
in 2021 | AFR | 79 | |||||
2.1 | Significant events of the year | 81 | |||||
2.2 | Consolidated revenue | 85 | |||||
2.3 | Statement of profit or loss and | ||||||
Alternative Performance Measures | 91 |
2.4 Statement of financial position, net debt, cash flows and other non-GAAP
measures | 98 | |||||||
2.5 | Acquisitions and partnerships | 101 | ||||||
2.6 | Investments made in 2021 | |||||||
and planned for 2022 | 101 | |||||||
2.7 | Subsequent events | 102 | ||||||
2.8 | Recent trends and outlook | 103 | ||||||
3 | Report on Corporate | |||||||
Governance | 105 | 6 | ||||||
3.1 | Information on Corporate | |||||||
Governance | 108 | |||||||
AFR | ||||||||
3.2 | Special procedures for shareholder | |||||||
participation in Shareholders' | ||||||||
Meetings | 127 | |||||||
AFR | ||||||||
3.3 | Compensation of corporate officers* | 131 |
3.4 Appendix: Summary table of recommendations
of the AFEP-MEDEF Code that have
not been applied | 171 | ||
3.5 | Appendix: List of offices | 7 | |
and responsibilities | 173 | ||
3.6 | Statutory Auditors' report on | ||
related-party agreements | 189 |
Financial | ||||||||
statements | 191 | |||||||
4.1 | Consolidated Financial Statements | 193 | ||||||
AFR | ||||||||
4.2 | Statutory Auditors' report on the | |||||||
consolidated financial statements | 265 | |||||||
AFR | ||||||||
4.3 | Unaudited Pro Forma Consolidated | |||||||
Financial Information | 269 | |||||||
4.4 | Statutory Auditors' report on the | |||||||
pro forma financial information | 275 | |||||||
4.5 | Financial statements | |||||||
of EssilorLuxottica | AFR | 276 | ||||||
4.6 | Other information related to the | |||||||
financial statements of EssilorLuxottica | 297 | |||||||
4.7 | Statutory Auditors' report | |||||||
on the financial statements | AFR | 299 | ||||||
Social, environmental | ||||||||
and societal information | 305 | |||||||
AFR | ||||||||
5.1 | EssilorLuxottica's approach | |||||||
to Sustainable Development | 306 |
5.2 Eyes on the Planet, EssilorLuxottica's sustainability
program | 316 | |
5.3 | Next steps for EssilorLuxottica's | |
sustainability program | 344 | |
5.4 | Methodology note and | |
correspondence tables | 345 |
5.5 Report by one of the Statutory Auditors, appointed as an independent third party, on the consolidated non-financial
information statement | 348 | |||||||||
Information about the Company, | ||||||||||
its share capital and stock ownership | 353 | |||||||||
6.1 | The Company | 355 | ||||||||
6.2 | Share capital | 358 | ||||||||
AFR | ||||||||||
6.3 | Shareholding | 362 | ||||||||
AFR | ||||||||||
6.4 | Employee shareholding | 364 | ||||||||
AFR | ||||||||||
6.5 | Dividend distribution | 370 | ||||||||
6.6 | Key stock market data | 371 | ||||||||
6.7 | Historical data | 373 | ||||||||
Additional information on the | ||||||||||
Universal Registration Document | 385 | |||||||||
7.1 | Person responsible | 387 | ||||||||
AFR | ||||||||||
7.2 | Statutory Auditors | 388 | ||||||||
7.3 | Publicly available documents | 388 | ||||||||
7.4 | Cross-reference tables | 389 |
The Universal Registration Documents, Registration Documents and releases cited as well as this Universal Registration Document are available at: www.essilorluxottica.com @ Investors / Pubblications and Downloads
- Includes the Report on the compensation policy of Executive Corporate Officers subject to the approval of shareholders at the Shareholders' Meeting on May 25, 2022.
The information from the Annual Financial Report (AFR) is clearly identified in the table of contents by the symbol AFR
2021 Universal
Registration
Document
Including
the Annual Financial
Report
This document is a non-certified translation into English of the Universal Registration Document (including the Annual Financial Report) issued in French, prepared in ESEF format (European Single Electronic Format) and filed on March 25, 2022 with the Autorité des Marchés Financiers (AMF), as competent authority under Regulation (EU) 2017/1129, without prior approval pursuant to article 9 of said Regulation.
The Universal Registration Document may be used for the purposes of an offer to the public of securities or the admission of securities to trading on a regulated market if completed by a securities note and, if applicable, a summary and any amendments to the Universal Registration Document. The whole is approved by the AMF in accordance with Regulation (EU) 2017/1129.
2021
Message from the Chairman
Leonardo Del Vecchio
Chairman
Dear Shareholders,
Welcome to a new era in our Company's history. While the past few years have been difficult, the dream of creating EssilorLuxottica gave us all something to work towards to, together. The extraordinary transformation of our Company is an impressive story spanning five years and is unlike anything the industry has ever seen.
In January 2017, we shared our vision to combine a global leader in iconic branded frames with a global leader in ophthalmic lenses. Our combination journey was not an overnight shift. We needed to reshape and simplify the new company in order to meet the growing needs of the industry. We appointed talented managers in key roles, we became more agile and more efficient by centralizing the organization, and, we fast-tracked decisions so as not to miss any opportunities.
From there, we achieved a new milestone, welcoming GrandVision into our family this year. Three leaders who share a commitment to bringing the best eyewear and eyecare to people everywhere now make up one single champion. Today, we are ready to fulfill our promise to grow the industry by creating new categories and entering new markets.
- 2021 Universal Registration Document EssilorLuxottica
From reimagining smart glasses to confronting myopia in innovative ways, we will create value for all our stakeholders and we will do it in a sustainable way.
Whether you have been with us from the very beginning or became a shareholder more recently, you have witnessed what EssilorLuxottica is capable of. Even in the face of a challenging 2021, we performed remarkably well without compromising our investment plans or our strategy.
I would like to thank our Board of Directors and our steadfast leadership, helmed by CEO Francesco Milleri and Deputy CEO Paul du Saillant, who have been instrumental in leading the way. They, along with our senior managers around the world, took great care of our people, while never losing sight of what makes our Company one-of-a-kind. Our customers and partners can be proud to work with these leaders and with all of our passionate employees.
2022 will be another trailblazing year. We have achieved great things and have many wins to celebrate, but there is always another mountain to climb. However, at EssilorLuxottica, we remain bold and purposeful, the only way to be on this journey.
Thank you for your ongoing support.
2021 Universal Registration Document EssilorLuxottica | 3 |
Message from the Chief Executive Officer and Deputy Chief Executive Officer
Francesco Milleri | Paul du Saillant |
Chief Executive Officer | Deputy Chief Executive Officer |
Dear Shareholders,
We are extremely proud to report another extraordinary year as EssilorLuxottica. Our 2021 success story is all the more inspiring, given the environment which we achieved it in. Despite unprecedented health and business conditions, we took a decisive turn in our recovery and showed the industry once again the unique sense of resilience and determination of our 180,000 talented and diverse employees, which was reflected in every corner of our business. We are extremely appreciative of their efforts of pulling through together, especially during these trying times. Most recently, thousands of our employees expressed solidarity with their colleagues and communities who were impacted by the crisis in Ukraine. As a socially responsible leader, EssilorLuxottica promptly responded to the call for help, providing on the ground support and raising funds, with the Group pledging to match all employee contributions for maximum impact.
2021 has been a crucial year for EssilorLuxottica as we made significant steps toward building one united organization by appointing strong leaders in key
business segments worldwide, and completing major transformational projects that will set us up for a bright future. We also completed the acquisition of GrandVision, welcoming 39,000 new colleagues into our family. Today, we are closer than ever to achieving our Chairman's lifelong dream of integrating three specialized industry champions to set the foundation for the global eyecare and eyewear leader of the future.
Product innovation, a cornerstone of our strategy to pursue long-term value and growth, made headlines this year. Ray-Ban Stories, the next generation of smart glasses in partnership with Meta (formerly Facebook), created an entirely new category, and Stellest lens, rolled out to France and Italy in 2021, stood out as an excellent response to slowing down myopia progression in children. From innovative and sustainable materials to breakthrough products that will improve millions of lives, EssilorLuxottica did not pause in 2021. Even when the world itself seemed to stop, we kept going for our people, our customers and for an industry that counts on us to push vision care forward.
- 2021 Universal Registration Document EssilorLuxottica
The Group's omnichannel and open business model, our proximity to customers, and our robust supply chain, also contributed to our strong performance. We entered 2022 as a radically transformed Group, through acquisitions and bold investment choices, but also as swift decision-makers and fearless entrepreneurs. We are now a "network company" offering a global platform of products, brands, services and digital solutions supported by worldwide integrated frames and lens manufacturing, as well as logistics and prescription laboratories for the entire industry. At the same time, to truly unlock the industry's full potential, we believe in partnering with other players, particularly those who share our passion for raising the quality of vision care products and service and delivering sight to those without access.
Notable highlights of this past year include the launch of Leonardo, which completely reimagined how we learn and train. It is a one-of-a-kind open learning platform to support the industry - including our employees, customers and partners - with best-in-class content available 24/7 on any device. For the first time, we showed up as one EssilorLuxottica at global trade events including Vision Expo in the US, Silmo in France and CIIE in China, to show the true value of our combined company to partners and clients. We introduced the world to our strategic sustainability program, "Eyes on the Planet", with commitment toward carbon neutrality, circularity, world sight, inclusion and ethics. It outlines our ambition to achieve carbon neutrality for direct operations by 2025, starting in Europe by 2023. We're pleased to share that we have already reached carbon neutrality in our direct operations in both France and Italy, our two historic home countries.
Guided by our inspiring Mission to help people "see more and be more", we continued our commitment to eliminate uncorrected poor vision worldwide. From providing vision care to millions in need through community-based sustainable models to collaborating with the world's most impactful philanthropies, EssilorLuxottica is tireless in realizing its vision for universal access. We're particularly proud of our inclusive business 2.5 New Vision Generation, which helps unemployed young people from rural communities become self-employed primary vision care technicians through training, small grants and ongoing business support. This initiative has created over 19,000 livelihoods in rural communities meaning these men and women are able to support their families by providing primary vision care services. As such it is the world's largest rural optical network. In 2022, to maximize our social impact, we will introduce a unified global vision care organization to gather our philanthropic and advocacy entities with a network of chapters in key countries and regions.
We know that there will always be uncertainties ahead as the world continues to test us all. However at EssilorLuxottica, we can look at 2022, and beyond, with great confidence.
We will continue to drive the industry's transformation, to deliver innovative products and solutions to every market and to live boldly at the intersection of technology and craftsmanship. All the while, we will continue upholding our values and standards that make us a great place to work and a great company to do business with.
So thank you for being on this journey with us and we look forward to celebrating more achievements with you.
2021 Universal Registration Document EssilorLuxottica | 5 |
1
- 2021 Universal Registration Document EssilorLuxottica
Chapter 1 | Presentation of EssilorLuxottica 1 |
Presentation of EssilorLuxottica
1.1.1 A rich portfolio of complementary
eyecare and eyewear brands | 10 | |
1.1.2 | Mission and Sustainability | 14 |
1.2 | History | 16 |
1.3 | The eyecare and eyewear | 19 |
industry | ||
1.4 | Meeting global demand | 20 |
for eyecare and eyewear | ||
1.4.1 | Group strategy | 20 |
1.4.2 | Innovation and design | 21 |
1.4.3 | Operations | 27 |
1.4.4 | Distribution | 32 |
1.4.5 | Product brand portfolio | 32 |
1.4.6 | Go-to-market | 38 |
1.5 | Simplified organizational chart | 48 |
1.6 | Risk factors | 49 |
1.6.1 | Introduction | 49 |
1.6.2 | Risk factors summary | 49 |
1.7 | Main characteristics of the risk | 75 |
management and internal control systems implemented by the Company
for the preparation and processing of accounting and financial information
1.7.1 The Company risk management
process | 75 |
1.7.2 The Company's internal control
objectives | 75 | |
1.7.3 | Organization of internal controls | 75 |
1.7.4 | Internal Audit department | 77 |
2021 Universal Registration Document EssilorLuxottica | 7 |
- Presentation of EssilorLuxottica
EssilorLuxottica Group Profile
1.1 EssilorLuxottica Group Profile
EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its Mission is to help people around the world "see more and be more" by addressing their vision needs and style aspirations while creating value for its employees and communities.
The Company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to create a vertically integrated business that is uniquely positioned to address the world's evolving vision needs. The innovation, design and quality of EssilorLuxottica's products and its strong, well-balanced brand portfolio allow the Company to respond to the global demand of a growing industry.
Proprietary eyewear brands include Ray-Ban, the most loved eyewear brand in the world, Oakley, one of the leading sport performance brands globally, Persol, Oliver Peoples, Vogue Eyewear, Arnette, Alain Mikli, Costa, Bolon and Foster Grant. Licensed eyewear brands include Giorgio Armani, Bulgari, Burberry, Chanel, Coach, Dolce&Gabbana, Ferrari, Michael Kors, Miu Miu, Prada, Ralph Lauren, Starck Biotech Paris, Tiffany
- Co., Tory Burch, Valentino and Versace for eyewear. The Group's portfolio also includes a range of innovative lens technologies, including Varilux, the number-one progressive lens brand recommended by eye care professionals(1), Transitions, the photochromic brand worn by more than 70 million people worldwide, Crizal, Eyezen, Xperio and most recently Stellest.
Key figures
Revenue pro forma* | Employees | Countries |
€21.5 bn | Over 180,000 | Over 150 |
Patents and designs | Major brands | Stores |
Over 11,000 | Over 150 | Approximately 18,000 |
Employee shareholders | Leonardo training hours | Mass production facilities | ||||||||||||||||
Approximately 67,000 | Nearly 1 million | 53 between lenses (39) | ||||||||||||||||
in 85 countries | and frames (14) | |||||||||||||||||
Prescription laboratories and | Worldwide frame production | Worldwide lens production |
edging-mounting facilities | 100 million prescription glasses | 565 million |
564 between Industrial (78) | and sunglasses frames | prescription lenses |
and Proximity Labs (486) | and 66 million pairs of | |
non-prescription sun lenses |
- Pro forma information as presented in the Unaudited Pro Forma Consolidated Financial Information (see Section 4.3 of this Universal Registration Document). This information has been prepared for illustrative purpose only, as if the acquisition of GrandVision had occurred on January 1, 2021.
- Survey conducted by CSA among a representative sample of 1,041 independent ECPs in 10 countries, including France, Spain, Germany, Italy, UK, US, Canada, Brazil, India and China (February-April 2018).
- 2021 Universal Registration Document EssilorLuxottica
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EssilorLuxottica SA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 09:43:00 UTC.