We were this Wednesday at the Carrousel du Louvre to participate in the EssilorLuxottica shareholders’ meeting. At the reception, the organizing bank, BNP Paribas, gave us a voting box (from the company MMA DMI) with 147 mandates for readers ofInvest unable to move, for 29,678 shares. The head of the general meetings department of BNP Paribas, Pierre Carlin, tells us that the box can be replaced by the smartphone of the shareholders, who then have to scan a QR code. The bank is using this system for the first time today, for AG Genfit in Lille.
The GA is opened with a provisional quorum of 80.43%. In the absence of President Leonardo Del Vecchio, who is ill, the CEO, Francesco Milleri (who speaks in English with instant translation), and the Deputy CEO, Paul du Saillant, are present on the podium.
Paul du Saillant explains that by integrating the 38,000 colleagues of GrandVision, the group gains great expertise in direct sales to consumers. He describes a group with dual Italian-French roots, whose turnover is generated 35% in Europe and 45% in the United States “.
The financial director, Stefano Grassi, now speaks in English on the 2021 accounts. He points out in particular that online sales amounted to 1.5 billion euros, up 60%. It indicates that the growth at constant exchange rates compared to 2019 amounted to 8% excluding GrandVision and 7.4% including GrandVision, with an operating margin of respectively 17% (compared to 16.2% in 2019) and a little less, 16.1%, pro forma with GrandVision over twelve months. The effects of the pandemic were felt in the first half. By 2026, “ this margin should reach 19 or 20%, with annual growth of around 5% “. This growth, at constant exchange rates, was 11.5% in the first quarter over one year, but the base effect will be less favorable thereafter.
Eradicate uncorrected poor vision
The floor is with Anurag Hans. This head of mission intends to contribute to ” eradicate uncorrected poor vision which affects one in three people in the world, or 2.7 billion people. He shows that this is possible by citing examples of access to vision health services in some parts of India. This responsible corporate commitment goes through the EssilorLuxottica Onesight foundation.
It is now Helena Dimichino, head of CSR, who is at the microphone. She talks about the global sustainable development agenda Eyes on the Planet. It has five pillars, including the objective of carbon neutrality in 2023 in Europe and in 2025 worldwide (for direct emissions) and the promotion of an inclusive work culture.
The Chairman of the Remuneration Committee explains that the salaries and bonuses of Ukrainians have been maintained and that assistance has been provided to refugees, for their accommodation and the supply of eye exams, glasses and contact lenses. It then details the criteria for calculating executive compensation for 2022. A new criterion for controlling general and administrative expenses is added for the bonus and replaces the one which in 2021 concerned the implementation of synergies with GrandVision. The CEO’s salary is 1.5 million euros. It is proposed to vote on a 20-month non-competition agreement in the event of departure, subject to compensation of 60% of gross fixed and variable compensation.
Employee shareholders
We move on to questions.
On the risk of technological disruption, Francesco Milleri says that the group has many R&D centers and has launched a connected Ray Ban. A collaboration exists with Meta (ex-Facebook) in this area of the future.
question ofInvest on employee share ownership. Paul du Saillant explains that this Essilor culture has taken root in the new group. The number of employee shareholders has increased from 18,000 in 2016 in 14 countries to 79,000 in nearly 89 countries, including 20,000 grouped within the company Valoptec. This system has been extended worldwide and, of course, to the Luxottica teams, while waiting for those of GrandVision.
We go to the vote with a quorum of 80.44%.
The 2021 compensation of the CEO and Deputy CEO is voted with 86.83% and 86.94% of the votes respectively.