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US Optical Market

Optical Overview

2nd Quarter 2019

Vision Expo West--Las Vegas, NV

September 18, 2019

Vision Council Research

Department

*Please note that the VisionWatch information in this presentation is for the sole use of

Vision Council companies only and cannot be distributed in any form to non-members

without consent from The Vision Council.

Vision Correction Usage: Jun’18 & Jun’19

219.9

165.1

42.232.8 31.3

24.413.5 18.3 12.7

PlanoSunglasses

Eyeglasses ContactLenses

Readers RxSunglasses

SunglassClips

ComputerEyewear

Surgery Squinters

In Millions of People

12ME Jun'18 12ME Jun'19

* Surgery is the sum of US residents having ever had refractive surgery; not counted as vision correction users

‘Squinters’: US residents who say that they need vision correction, but do not use any

•Categories: the number of US residents 18+ who use the

vision correction alternative all or any part of the time

• Some people use more than one vision correction device

195.3 Million Vision

Correction Users:

+2.8 million from

Jun’18

Vision Care Products & Services – Total U.S.

Market

$9,940.0

$14,121.4

$5,399.8$4,348.2

$943.1

$6,328.2

$1,896.8

OphthalmicFrames

Rx Lenses Contact Lenses PlanoSunglasses

OTC Readers Eye Exams RefractiveSurgery

In $Millions$All Retail*

Inflation not taken into consideration

12ME Jun17 12ME Jun18 12ME Jun19

*All retail includes dollars spent at all retail types at any retail location on the sale of either spectacle lenses (including Rx sun), frames, contact lenses,

sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass

clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those

17 years of age and younger.

$42.98 Billion:

+2.4% from 12ME

Period Jun’18

Growth in Contact Lens Adult Consumer

Usage and Sales Revenue: 12ME Period Jun’14 – 12ME Period Jun’19

2.93M

1.19

1.74

1.26

0.84

0.390.43

2.80$1,068.2

$420.8

$647.4

$566.9

$231.0 $139.1

$131.1

$202.3

$866.0

Total Male Female 18-34 35-44 45-54 55+ AHI: Upto $60K

AHI:$60K+

Growth in CL Usage (Millions of Users)

Growth in Revenue ($Millions$)

0.13

Vision Care Products & Services – Total U.S.

Market by Major Distribution Channel

$4,891.7

$7,081.4

$2,135.7

$162.8 $43.6

$4,473.1

$1,045.4$1,402.1 $1,320.8

$570.9$236.4

$581.7

OphthalmicFrames

Rx Lenses Contact Lenses Plano SG OTC Readers Eye Exams

In $Millions$All Retail*

Inflation not taken into consideration

Independent ECPs

Conventional Chains

Mass Merchants / Wholesale Clubs

*All retail includes dollars spent at all retail types at any retail location on the sale of either spectacle lenses (including Rx sun), frames, contact lenses,

sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass

clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those

17 years of age and younger.

Market Sizing:

Indep. ECP: $18.79B

Chains: $8.98B

Mass/Club: $5.16B

Vision Care Products & Services – Total U.S.

Online / Internet Market

*Online retail includes dollars spent on websites / online retailers for the sale of either spectacle lenses (including Rx sun), frames, contact lenses,

sunglasses (plano), and OTC readers. This number does not include sunglass clips and reflects the dollars spent only by those U.S. residents 18 and

older. Does not include retail dollars spent by/for contact lenses and exams for those 17 years of age and younger.

$2.66 Billion:

+7.7% from 12ME

Period Jun’18

$495.2

$676.6

$822.5

$591.2

$77.9

Ophthalmic Frames Rx Lenses Contact Lenses Plano Sunglasses* OTC Readers

In $Millions$Online Retail Dollars *

Inflation not taken into consideration

12ME Jun17 12ME Jun18 12ME Jun19

12ME June 2019: All Frame Purchase, Online Frame

Purchases & Future Potential Online Purchases

78.7

36.9

41.8

20.9

13.115.3

29.431.3

47.4

7.4

3.2 4.2 3.71.4 1.2 1.1 2.7

4.7

14.5

6.6 8.04.6

2.7 3.0 4.2 5.59.0

All Men Women 18-34Yrs Old

35-44Yrs Old

45-54Yrs Old

55+ YrsOld

AHI: Upto $60K

AHI:$60K+

All Frame Purchases 12ME Jun'19

Online Frame Purchases 12ME Jun'19

Potential Future Online Frame Purchases

Millions of Unit Pairs

VisionWatch: The Vision Council Annual Sample Size: 110,000+ Adults

US Plano Sunglass Retail Sales (Millions of

Pairs) by Channel: 12ME June 2019

Total Sales vs. Up to $30

0.0

5.0

10.0

15.0

20.0

25.0

30.0

+4.2%+0.0%

+1.3%

+2.8%+1.3%

+1.0%

+3.8%

+2.9%

-11.9%

-6.6%

+2.5%

+2.2%

+1.7%

-0.4%+2.7% -0.4%

+2.5%

Growth vs.

12ME Jun’18

-1.9%

+8.1%

In millions

OTC Readers--Wearers & Dollars: 12ME Jun’19

Average Annual Spending

$28.75

VisionWatch: The Vision Council Annual Sample Size: 110,000+ Adults

$28.43$29.12 $42.07 $30.50 $25.59 $25.78 $31.27

$943

$446$497

$68

$341

$495

$388

$555

32.8

15.3 17.5

1.6

11.219.3

15.0 17.8

All Men Women 35-44 45-54 55+ AHI: Upto $60K

AHI:$60K+

Number of People Wearing

Units Sold

Dollar Revenue

MVC: Trends and Demographics

45.9%

50.6%

12MEDec'09

12MEDec'10

12MEDec'11

12MEDec'12

12MEDec'13

12MEDec'14

12MEDec'15

12MEDec'16

12MEDec'17

12MEDec'18

12MEJun'19

Percentage of the US Adult Population with MVC Coverage

52.7%

28.8%

20.0% 19.9%

31.3%

37.4%

62.6%

18.6%

36.3%

21.2%23.9%

Male Female 18-34 35-44 45-54 55+ AHI: Upto $60K

AHI:$60K+

NERegion

SERegion

MWRegion

MPRegion

Total US Adult Population Possess MVC

47.3%

Ophthalmic Frames

Retail Structure of Frame Market (Dollars)

5.3% 5.3% 5.2%4.2% 4.6% 5.0%3.5% 3.1% 2.7%

10.7% 10.6% 10.5%

27.9% 27.5% 27.4%

48.4% 48.9% 49.2%

12ME Jun17 12ME Jun18 12ME Jun19

Other Online / Internet Department Stores

Mass Merchandisers / Clubs Chains Independents

+1.7%

+2.4%

+1.2%

+0.8%

-12.3%

+10.0%

% Change

18/19

$9,769.7M$9,638.4M $9,940.0M

+0.9%

Frame Unit Purchases:

Usage of Insurance By Consumers66.2

Million

78.7

Million

60.4% 62.2% 59.6% 59.3% 57.4% 57.6% 58.7% 58.3% 58.3% 58.2% 58.7% 59.3%

39.6% 37.8% 40.4% 40.7% 42.6% 42.4% 41.3% 41.7% 41.7% 41.8% 41.3% 40.7%

12MEJun08

12MEJun09

12MEJun10

12MEJun11

12MEJun12

12MEJun13

12MEJun14

12MEJun15

12MEJun16

12MEJun17

12MEJun18

12MEJun19

Used Insurance No Insurance

Frame Unit Purchases: By Material—12ME June 2019

VisionWatch: The Vision Council Annual Sample Size: 110,000+ Adults

40.2%

31.8%

22.3%

5.7%8.6% Total Metal

Combination (plastic& metal)

Plastic

Other

Rimless / Semi-Rimless

55.0%

45.0%

27.5%21.1% 21.3%

30.1%33.5%

66.5% 63.3%

36.7%

Male Female 18-34 35-44 45-54 55+ AHI: Upto$60K

AHI:$60K+

MVC FTC

All Frame Purchases

Rimless / Semi-Rimless

Percentage of Lenses (Units) with the Following

Attributes: 12ME Jun’18 vs. 12ME Jun’1954.5%

14.4%

31.1%

8.6%

45.6%

7.8%

15.7%

60.8%

10.9%

41.7%

8.2%

SV

MF

PAL

Free Form / Digital PAL

AR

Polarized / Rx Sun

Photochromic

MVC

Lens-Only Purchase

Sold via Independent ECP

Sold via Online Retailer

+6.1%

+2.8%

+4.0%

+1.6%

+2.1%+0.9%

+8.5%

+1.0%

+1.8%

-3.7%

+1.7%

Vision Care Products & Services – Total

Projected 12ME Jun’20 U.S. Market Forecast

OphthalmicFrames

Rx Lenses Contact Lenses PlanoSunglasses

OTC Readers Eye Exams RefractiveSurgery

In $Millions$Inflation not taken into consideration

12ME Mar'18 12ME Mar'19 12ME Mar'20

*All retail includes dollars spent at all retail types at any retail location on the sale of either spectacle lenses (including Rx sun), frames, contact lenses,

sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass

clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those

17 years of age and younger.

+0.7% +1.1%

+0.2%+4.1%

+2.2%

+1.5%

-0.6%

DATA / MARKET QUESTIONS?

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