Essilor Luxottica

Hello everybody, this is Giorgio Iannella from the IR team. Thank you for joining S0 Luxottica H1 2026 results management call. The group chairman and CEO Francesco Milleri, the deputy CEO Paul du Saillant, and the CFO Stefano Grassi will walk you through the business and financial highlights of the period. After their presentations, there will be a 30-minute Q&A session. If you want to make a question, please press star followed by 5. We kindly ask you to limit your questions to a maximum of 2. 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 to share the result of the first half of the year and give an update on the execution of our strategic vision as the group evolves at a speed that is completely new in our history. First of all I would like to say just a quick word on the financial performance of the first semester. Revenue growth at a constant currency remained extremely solid at 9.7%, fully aligned with our targets. This result was supported by the resilient performance of our core business of frame and lenses and by the exponential growth of our clinical platform and wearable category. Adjusted operating profit progressed even faster at 15% alongside our investments in R&D, AI and medical capabilities, together with the strong development of our industrial and commercial footprint. Cash generation confirmed its strong trend, exceeding 1 billion in the period. Move to our strategy, we are taking a precise and ambitious direction. Essilor Luxottica is leveraging its unique platform, vertically integrated, fully omnichannel, leading in size and global footprint to move towards the new frontier of oculomics. Based on eye-related biomarkers to offer medical services everywhere and at all levels. Entering as a main player in the whole healthcare market, bringing this new technology from laboratories to clinics and stores. To understand what this means in practice, let me start from LensCrafter opening of its first vision and high health surgery center in Philadelphia. A fully integrated platform that brings comprehensive high evaluations and surgical procedures under one roof, together with our unmatched portfolio of frames and lenses. This is the first step of a plan to build a system of surgical hubs based on our optical store network. A health care center like this will go far beyond high disease, A recent commentary that circulated widely in the US predicts that in five years the largest cardiovascular screening site in America will not be a hospital nor a primary clinic. It will be the lens crafter banner and broader optical practice network. This is not a speculative bet, since the concept of oculomics was established, more than 400 peer-reviewed studies have validated the eye as a primary and reliable window into systemic health, making it today a recognized and increasingly adopted diagnostic approach across the scientific and medical community. A single 15-minute exam at one location, either of the group or of its partners, powered by Heidelberg high-resolution OCT, complemented by Retin-AI's capability, will be able to detect a wide span of disease, like diabetes, cardiovascular issue and cognitive decline. This is where our vision is going, complementing and supporting primary care, delivering prevention, early detection and predictive medicine where people already go. Our short-term ambition is to create a new layer in the healthcare system that will more efficiently connect patients and hospitals. Complementary to that, in order to strengthen trust, governance and accountability of our developing business Mollen, we are building the foundation to manage data as a strategic asset, reliable, protected, compliant and usable across the group and geographies. To expand these new medical services from the physical practice directly on the face of billions of people through wearable, we need a specific MISIS piece of technology. In order to achieve that, we started a strategic partnership with Applied Material to jointly develop and manufacture the new generation of intelligent optical systems for AI and AR wearable. This partnership is aimed at shaping the future of optics, ranging from waveguides to adaptive and electroactive lenses, from prescription integration to advanced encapsulation, dimming and light modulation technologies. The lens category itself will be redefined and our capability to master this new stack industrially, at cost, at scale, with ability to personalize, will let us lead the future not only of smart glasses, but of the entire premium eyewear category. No other player in the world can combine comprehensive ophthalmic know-how and excellence with semiconductor-grade manufacturing capabilities. Our objective is to place Essilor Luxottica at the forefront of innovation in the next generation of lenses and the first products and pilot line are already being realized. Regarding our hearing aid glasses, Nuance Audio is progressing along its discovery path, building awareness and adoption. The second generation will hit the market in mid-September with improvements in battery life, audio amplification, new features and better design. A final word on wearable and our partnership with Meta. which continues to deliver exponential growth. In H1, we further enriched the portfolio with Ray-Ban Meta Optics, our first optical style, adjustable and perfectly fitting to be easily worn for the full day. Together with Meta, we also launched a new collection specifically designed to open the eyeglasses category to a broader, younger and price sensitive audience. Together with Ray-Ban and Oakley, as well as the display model, we now offer the most complete lineup of AI glasses in the market, and more is to come. The category is scaling across geographies, brands, price points, and consumer segments, with higher profitability already visible in our numbers. In conclusion, H1 2026 confirms that we are where we want to be, with sales and profits growing. We remain confident in our ability to deliver in our financial ambition and our strategic vision. In less than 10 years, we deeply transformed our group from the best in class in frame and lenses to the pioneer of the wearable category and now into the iMedTech and Oculomics healthcare leader. With that, I hand over to Paul.

Thank you, Francesco. It is a pleasure to be with you today. The first six months of 2026 have been, in many ways, a period of consistent acceleration for our group in terms of strategy execution and financial performance. Behind the numbers Stefano will walk you through shortly, what stands out to me is our team's unique ability to continuously execute across the board. Advancing the science, expanding the industrial footprint and staying close to our patients and consumers. None of this happens with chance. It rests on assets and capabilities we have been building over decades, made up of an integrated production and lab network, a supply chain designed for both agility and resilience, and a distribution model that spans wholesale, physical retail and e-commerce channels. These are the foundations that allow us to bring innovation to market at speed and scale, wherever our patients and consumers are worldwide. At the heart of this delivery is our core business of eye care and eyewear, which is a key driver of the group of resilient growth, both in revenue and profits. In ophthalmic lenses, our pipeline is rich. Over the recent quarters, we unveiled Crisal Natural Look, Varilux Immersia and Varius Shift, steps forward in the key fields of anti-reflective and progressive lenses to be rolled out across our trade channels. We also are having great product dynamics under Shamir and Nikon brands. On the eyewear side, the last six months confirmed the enduring strength of the Ray-Ban brand in traditional glasses, supported by the successful roll-out of the Ray-Ban Innovation Lab, new polarized ultra-lens technology, the launch of the transition color touch capsule, and continued momentum on the Wefairer models and Aviator shapes. Our new luxury eyewear collections were well received by our customers at the recent Essilor Luxottica Days, with Miu Miu and Chanel at the forefront. Beyond this solid base, I would like to focus on what I believe is the fil rouge of our story. Turning science into human impact at scale, through three deeply connected engines. Our portfolio of myopia management lens solution, our R&D capabilities and industrial platform, and the go-to-market global reach. Science, scale, and access. One single continuum. Let me start from myopia management, a field where we have further strengthened our leadership, keeping sales growth above 20% quarter after quarter, thanks to strong clinical evidence and a widening range of solutions across technologies, brands and price points. In the first half, we helped shape the next frontier of the field at flagship scientific events. At CCOI and APAO 2026 in Hong Kong, we broadened the conversation from slowing progression to prevention. And at ARVO 2026 in Denver, we presented the most comprehensive evidence-based ever built around myopia spectacle lens. including a seven-year Chinese follow-up confirming Stelest's sustained efficacy. In the US, Stelest has already reached 11,000 doors across channels, progressively bringing the eye doctor community on board to prescribe it. And in June, we launched Stelest in Japan, another high-prevalence market. While we continue to invest in R&D assets and capabilities in France and Italy, we complemented our global footprint with a new R&D hub in Lac-Crabon, Thailand, a state-of-the-art 5,000 square meter center located next to our major manufacturing facilities. This hub is bringing under one roof Advanced Material Research, Polymer Chemistry, Characterization and Industrialization for Next Generation Lenses, Wearables and MedTech. Another major decision we announced is the roll-out of wearable production in Italy, adding a new premium product category to the range assigned to our best-in-class Italian plant. This reinforces our leadership in AI glasses and paves the way for the launch of new made-in-Italy smart eyewear. Stefano will give you details on the excellent performance of our nearly 20,000 location retail network worldwide. I would just like to remind you that together with our leading wholesale presence, our brick-and-mortar global distribution platform is a key success factor in our omni-channel business model and a major driver of its evolution. As a part of that, in April, we took a major step acquiring a meaningful stake in Topsharan, Thailand's largest optical retail chain, with almost 2,000 stores across the country, an integrated eye care service model and a portfolio of well-known house and license banners. Founded in 1947, Topsharan brings us closer to consumers in one of Asia's most important markets, elevates vision care standards across the region and creates a natural runway to accelerate the wearable category in Southeast Asia. Together with our Thai manufacturing footprint and the new R&D hub, Thailand is emerging as a fully integrated ecosystem. Last word on sustainability, which is a fundamental pillar of Essilor Luxottica's journey. Our facilities are designed to the highest environmental standards, while our single-use plastic reduction efforts continue to progress well toward our 2030 targets, as mirrored by our improved ranking, like last year's CDP climate air rating and DGSI recognition. To conclude, Essilor Luxottica's progress in H1 is centered on a unique combination of clinical science, integrated industrial scale, and consumer reach. This is quite remarkable. As Francesco said, we are delivering on our long-term ambitions while redefining the boundaries of our industry. With that, I hand it over to Stefano. Thank you.