In 2017/18, the ZEISS Group generated approximately 90 percent of its revenue outside Germany. Once again, the dynamically developing economies in the APAC region in particular contributed to this positive development. Direct business in China has grown by 21 percent, superseding Germany as the company's second-largest sales market after the US. ZEISS was able to continue growing in the EMEA region with a four-percent increase in revenue. Posting five-percent growth, the optics company again enjoyed positive gains in the Americas region.
The 16-percent increase in expenditures for research and development is a particularly strong indicator of the company's investment strategy: in fiscal year 2017/18, these totaled EUR 642 million (2016/17: EUR 552 million). During the reporting period, the investments in property, plant and equipment increased significantly to EUR 244 million (2016/17: EUR 183 million), as compared to depreciations totaling EUR 164 million (2016/17: EUR 160 million). "Our strategic investment strategy focused on continuity is the foundation for the ZEISS Group's future growth," says Dr. Christian Müller, who became Chief Financial Officer and Member of the Executive Board on 1 October 2018. "We are not only investing in technology and infrastructure at our existing sites worldwide, but are also progressively increasing our presence at new centers for high technology and digital innovation in Karlsruhe, Munich and Shanghai."
The acquisitions completed during the previous fiscal year included Bosello High Technology, a solutions provider for industrial X-ray systems, and Guardus, a software provider for production analysis and control. In October 2018, ZEISS announced that it had purchased IanTECH, which specializes in micro-interventional cataract surgery. "We have made targeted acquisitions in highly innovative solutions and companies that will reach their full potential as part of our portfolio," says Kaschke, explaining the M&A strategy.
On 30 September 2018, net liquidity totaled EUR 2,120 million, which was EUR 134 million higher than at the end of fiscal year 2016/17. This liquidity ensures sufficient flexibility for strategic acquisitions and investments.
Free cash flow amounted to EUR 752 million (2016/17: EUR 658 million). Equity rose by ten percent to EUR 3,763 million (30 September 2017: EUR 3,429 million).
A proposal will be made at the Annual General Meeting of Carl Zeiss AG to pay a dividend of EUR 54.3 million to the Carl Zeiss Foundation, the sole stockholder of the foundation company Carl Zeiss AG. Established in 1889, it is not only one of the oldest private foundations in Germany, but also one of the largest foundations committed to the promotion of science.
The number of employees worldwide increased by nine percent. Due to the personnel requirements at Semiconductor Manufacturing Technology, the headcount increase occurred primarily in Germany, with over 700 new employees hired. On 30 September 2018, ZEISS had a global workforce of around 30,000 employees. As in previous years, employees shared in the company's success.
"The positive development in fiscal year 2017/18 confirms that we are on the right track with our corporate strategy, the ZEISS Agenda 2020. This agenda focuses on our customers' success as well as on market-shaping innovations, investments and improving our competitiveness," says Kaschke, summing up the fiscal year.