Essilor's First-Half 2008 Results(ffective tax rate compared with a 3...)

tax rate compared with a 32.0% rate for first-half 2007. The

improvement was driven by a lower average tax rate in Europe and

business growth in Asia, where the rate is below the Company average.

- The share of profit from associates-VisionWeb, Sperian

Protection and Transitions-which amounted to EUR14.7 million, versus

EUR15.3 million in first-half 2007. Earnings from Transitions declined

slightly to EUR9.6 million, from EUR10.1 million for the prior-year

period, because of a strongly negative currency effect and the

concentration of marketing costs in the first half related to the

launch of the sixth generation of variable-tint lenses in North

America.

Profit attributable to equity holders of the parent was 9.0% higher, at EUR198.3 million. Earnings per share rose by 8.1% to EUR0.96.

Inventories and work in progress

Inventories amounted to EUR400 million at June 30, 2008, compared with 394 million at December 31, 2007, a 1.5% increase. The like-for-like increase was 4.3%, below the rate of revenue growth.

Investments

Capital expenditure net of divestments totaled EUR95 million or 6.2% of consolidated revenue. Financial investments net of disposals amounted to EUR140.2 million. Of this amount, acquisitions accounted for EUR75.7 million, while buybacks of Essilor shares accounted for EUR64.5 million.
Cash Flow Statement

EUR millions

Net cash from operations 275 Capital expenditure 95

net of the proceeds

from asset sales

Proceeds from employee share 22 Change in WCR and 92

issue provisions

Net decrease in cash and 150 Dividends 129

cash equivalents

Effect of changes in 9 Financial investments 140

exchange rates and i
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