Essilor Luxottica

Hello everybody, this is Giorgio Ianella from the IR team. Thank you for joining S0 Luxottica Full Year 2025 Results Management Call. The Group Chairman and CEO Francesco Milleri, the Deputy CEO Paul Dusayan, and the CFO Stefano Grassi will walk you through the business and financial highlights of last year. After their presentations, there will be a 30-minute Q&A session. If you want to make a question, please press star followed by five. We kindly ask you to limit your questions to a maximum of two. With that, I hand it over to Francesco.

Welcome back, everyone, and thank you for joining us today. I am pleased to reconnect with you and to share where we stand with the execution of our new strategy, which is clearly driving the group business momentum. This is in line with our plans and I believe it will become more and more visible in the near future as the new projects, products and medical services will translate directly into numbers. 2025 marked a year of sharp acceleration for SC Lord Luxottica as we managed our deep transformation from a traditional optical company into a leading medtech and data-driven group. This broader scope now better defines and makes clear our core business, strategic focus, and investment priorities. The new ambition of our group is to shape the future of health and human performance. This evolution represents the key engine behind our faster revenue growth and the driver of the positive progression of our profits. The strong increase of revenue in the fourth quarter reflects the solid performance of our overall business. further reinforced by our clear leadership in wearable and medtech we are confident that this trajectory will continue confirming the strength of our vision and the excellence of our execution Stefano, we walk you through our financial performance later on. I would just like to highlight that we recorded revenue growth at cost and currency above 18% in the fourth quarter and 11% in the full year. For the first time, we see a double digit in our history. With a 28.5 billion euro revenue in the full year, the adjusted operating profit reached 4.5 billion after 300 million headwinds from U.S. tariffs and materially adverse exchange rates. Solid operations are clearly shown by a strong free cash flow of 2.8 billion, 400 million higher than last year. At this stage, the new category we have created in AI glasses is at the heart of this journey. In 2025, we sold more than 7 million units of AI glasses, posting exponential growth driven by the strength of our iconic brands, Ray-Ban and Oakley, across all geographies and channels. This success of our wearable brands has been made possible by our unique logistic and distribution footprint. with 18,000 stores in retail and 300,000 partners in wholesale, forming the most powerful go-to-market platform for a product that is, first and foremost, a vision care device. This view is further reinforced by rapidly growing attachment rates of prescription lenses and the already high penetration of photochromic lenses, which together are delivering a strong increase in daily usage and confirming the relevance of this category for all consumers. Wearable are now becoming part of our normal life. As a testament to our capacity to roll out this new category and expand its scope, the recently launched Oakley Vanguard unlocks new use cases across both sport and lifestyle. More is coming in terms of brands and futures, with increasing levels of personalization not only in daily and social life, but also in professional activities. Several projects are already underway with banks, consulting firms, and health care institutions, opening up larger and sometimes unexpected market opportunities. AI glasses are not only the evolution of traditional eyewear. They are, above all, a new digital platform that brings together vision correction, biosensors, audio, cameras, and artificial intelligence into a single system. We are increasingly convinced that this category has the potential, over time, to replace the mobile phone as the primary personal computing interface in both personal and professional contexts. In 2025, our plan has been focused on growth and scale. We are convinced that leadership and consistent market share in this strategic area are essential for the future of our MedTech vision. This acceleration requires significant upfront investments in both OPEX and CAPEX across R&D, operations, marketing, and communications. As expected, these initial investments are reflected in our P&L, but still the group reached record earnings results. As our medtech and wearable segments reach scale, we expect profit to accelerate and the operating margin to regain momentum for both Essilor Luxottica and the whole optical and medtech industry. The future direction of the company is now set around a clear and well-executed strategy based on emerging field of oculomics. This enables us to expand our scope from vision correction into medical support and the early detection of metabolic, neurological, and cardiovascular conditions. In line with this vision, our journey will continue to extend into advanced health technologies, predictive medicine, diagnostic instruments, and clinical practices, including surgical applications. One of our most important achievements has been our ability to integrate in a truly holistic way AI glasses as a consumer-facing evolution with the data-driven medtech, healthcare, and clinical business. You will see our M&A approach evolve with an increasing focus on startups in vertical medical AI, advanced diagnostics, and support for clinical studies. At the same time, we will continue to improve and extend our logistics and distribution footprint through both internal and external growth across physical retail and e-commerce. The convergence of these two dimensions, digital and physical, together with our strong medical reputation, is what we believe makes our strategy truly unique and almost impossible to replicate. Finally, in hearing aid glasses, we continue to invest in a vertical application of our technology in the audio space, bringing in new customer segments and incremental revenue. We have high expectations for the launch of new products in the second half of this year. combined with our strategy to expand audio features across our wearables through a subscription-based approach. In conclusion, we have closed a remarkable year and are starting the new one with strong confidence and clear plans to be at the forefront of the convergence of multiple sectors and different industries into glasses. That is why Essilor Luxottica is taking leadership in the whole medtech space. Last word on our financial roadmap. While we confirm we are fully on track with our long-term outlook dating back to March 2022, today we are updating it, planning to deliver over the next five years a solid and broadly aligned growth of revenues and operating profit. With that, I will now hand over to Paul. Thank you.

Thank you, Francesco, and hello everyone. Happy to reconnect with you. As you have heard, in 2025, Essilor Luxottica took further decisive steps in its strategic journey and delivered solid financial results, driven by an ambitious vision, strong execution, and a relentless focus on innovation. This performance is underpinned by our best-in-class manufacturing and logistics platform, our global and resilient supply chain, and a unique omnichannel distribution model that enables us to scale innovation efficiently and consistently across markets. Today, I would like to take a step back and focus on what sits at the very core of our vision and strategy in the traditional business. which is the scientific ecosystem we are building around high health. Let me start from Lance Innovation and MyOpere Management in particular, a field that we have been investing in for almost half a century and where we further strengthen our leadership in 2025. STELEST has become a global reference in myopia management, supported by robust, long-term clinical evidence, and is now worn by millions of children worldwide. Importantly, STELEST remains the first and only spectacle lens to have received FDA market authorization in the United States. This is a decisive recognition of myopia management as a medical treatment. In 2025, we took a major step forward with the launch in China of Stellest 2.0. Our most advanced myopia management lands to date. We have maximized the lens power and asphericity of the microlenses based on our fundamental research at a neurobiological level, leading to almost two times lower actual length growth after 12 months in STELES 2.0 versus the previous generation. This new generation is being rolled out in EMEA and will apply for authorization with the FDA. At the same time, we are moving earlier in the patient journey. With STELES Plano solution, we are addressing children at risk of developing myopia, based on clinical evidence showing that delaying onset can deliver long-term benefits comparable to years of slow progression. This marks a shift from management toward evidence-based prevention, a meaningful evolution. Our approach to Myopia is deliberately multi-technology and multi-brand. Alongside Stelest, SideGlass Vision Dot Technology, commercialized under Nikon and Kodak in China, continues to gain great traction, reinforcing our portfolio and offering IKEA professionals a broader set of clinical validated solutions across different price points. As a result, in 2025, total revenue generated by our Myopia management portfolio grew by 22%. Beyond Myopia, innovation across our lens portfolio remains strong. In Presbyopia, brands such as Varilux, Nikon, and Shamir continue to introduce designs that combine optical precision, personalization, and comfort, leveraging AI-driven modeling. Transition, extending light management benefit across prescription, plano and smart eyewear is increasingly becoming a standard feature in connected glasses. In frames, 2025 was a year of strong brand momentum and creative activation across our portfolio. On the licensing side, we renewed our long-term partnership with Burberry through 2035, reaffirming a collaboration rooted in craftsmanship and innovation, and we launched the first-ever collaboration between MiuMiu and Puyi Optical, demonstrating our ability to blend exclusivity, design excellence, and retail leadership, particularly in Asia. Across our proprietary brands, we further strengthened Ray-Ban's creative leadership by naming ASAPROCHI as its first ever creative director. We celebrated Oakley's 50th anniversary and we are now seeing the brand gain exceptional global visibility through its presence at the Winter Olympics in Italy. At the core of all our initiatives is science. Last year, we formalized this commitment with the creation of our Scientific Advisory Committee, bringing together five world-class experts across physics, mathematics, ophthalmology, bioethics, and neuroscience, including Nobel Prize and Fields Medal laureates. Their role is to challenge us, guide us, and help us explore new frontiers from oculomics to AI and neuroscience, always with patients in mind, in areas of human health where ethics matters as much as innovation. We are reinforcing our ecosystem through open collaboration. Our partnership with the Politecnico di Milano continues to advance research at the intersection of optics, bioengineering, and artificial intelligence, while the joint Smart Eyewear Lab is shaping the future of connected vision devices. Our membership in the collaborative community on oftalmic innovation allows us to contribute to global standards and consensus building across myopia, AI, and data-driven ophthalmology. Through our collaboration with CHIPS IT, we are also investing in application-specific semiconductors designed to enable the next generation of smart and medical eyewear. Finally, at our Bastille R&D Lab in Paris, teams are working at the frontier between vision science and neuroscience, exploring how visual signals are processed and transmitted by the brain. This research is essential to deepen our understanding of perception and cognition and to unlock the next wave of optical and neuro-adaptive solutions. Sustainability remains a fundamental pillar of our strategy, guided by a clear roadmap across climate, circularity, responsible operation, and social impact. This year, our efforts were recognized by leading external benchmarks. We achieved an A rating for climate from CDP, placing Essilor Luxottica among A-list organizations. In parallel, our Standard & Poor's Global Corporate Sustainability Assessment score reached 66, securing the third position in our industry worldwide out of more than 250 assessed companies. To sum up, 2025 confirms that SLR Luxottica growth is built on a unique combination of clinical science, technological depth, and industrial scale. From medtech to neuroscience, from eyewear to eye health, we are not only innovating with our industry, we are redefining its boundaries. At the same time, with our new long-term outlook, we are looking at the next five years with solid ambitions on our financial delivery. With that, I will now hand over to Stefano. Thank you.