Financial key figures:

Data are as at December 31, 2023

EssilorLuxottica aims at maintaining continuous liquidity in order to ensure its independence and growth through significant and steady cash flows. The group also observes some liquidity principles aiming at securing funding availability at all times at the lowest possible costs. This principle relies upon the diversification of funding sources, the use of medium and long-term financings, the distribution of maturities over time, the recourse to credit facilities and the use of liquidity reserves.

Funding principles

• Liquidity management is centralized at the level of the group parent company.
• Source of funding diversification is the cornerstone of liquidity policy.

Rating

Maintaining a strong credit rating is the best way to provide an access to a wide range of funding sources. EssilorLuxottica credit ratings are based on the assessment of its credit profile and its ability to repay its debt by Moody’s and Standard & Poor’s. These ratings are purely indicative and may be modified at any time.

Data are as at December 31, 2023

The group diversifies its financings across:

• instruments: bond, private placement, term loan, commercial paper, leasing;
• geographies: Europe, US, Asia, local markets;
• tenors: short-term, long-term;
• currencies;
• interest rates: floating, fixed, capped; and
• drawn/undrawn instruments.

Gross debt structure

Long term funding

Providing long-term funding helps securing the group’s ability to carry-out its strategy on a long-term horizon irrespective of potential market disruptions.

Short term funding

EssilorLuxottica entertains US commercial paper (USCP) and Negotiable EUropean commercial paper (NEU CP) programmes. They are a flexible and cost-effective tool to raise monies with very short notice, which is well-suited to working capital funding needs.

Net debt (currencies)

AFTER FX SWAPS, IN MILLIONS OF €

Net debt (interest rates)

AFTER IR SWAPS, IN MILLIONS OF €

Data are as at December 31, 2023

While the group mainly finances itself through financial markets, it also secures its permanent access to liquidity through long-term committed credit facilities (syndicated, bilateral lines and bridge facilities) concluded with a pool of close banks. Such credit facilities are a funding buffer and a back-up for the group’s short-term commercial paper programs.

As of December 31, 2023

• all bank committed credit facilities were undrawn. Their aggregate amount significantly exceeded the upcoming debt maturities due in 2024;
• available cash was €2,558 (€m).

As of December 31, 2023 the average maturity of the gross debt was 2.9 years.

Debt Maturity Profile

IN MILLIONS OF €

1. Long term financing

EMTN: European Medium Term Notes

Outstanding bonds

US Private Placements

Bank credit facilities

As of December 31, 2023 EssilorLuxottica’s committed bank credit facilities amount to €2.3 billion equivalent, including

(i) a €1,750 million euros five-year syndicated credit facility entered in 2021 reaching maturity in May 2028; and

(ii) several bilateral credit facilities;

All are undrawn.

2. Short term financing