A successful first half year for ZEISS

In the first half of fiscal year 2021/22, the positive trend continued across all ZEISS segments. The revenue for the first six months totaled 4,099 million euros (+20% versus the prior year) – the ZEISS Group also once again exceeded the very good EBIT result of the prior year with 736 million euros (+145 million euros versus the prior year).

  • Half-year revenue significantly higher than the very good prior-year level
  • Positive trend continues despite challenging conditions
  • All segments contributed to this sustained positive development
  • Expenditure on research and development remains at a high level, totaling 13% of revenue
  • The number of employees has increased by 7% to 36,855

Oberkochen, Germany | 18 May 2022 | ZEISS Group

The positive trend continues at the ZEISS Group, which had a positive end to the first six months of fiscal year 2021/22 (ended 31 March 2022) that was significantly higher than the very good result seen in the previous year: revenue increased by 20% to 4.1 billion euros (prior year: 3.4 billion euros). At 736 million euros, earnings before interest and taxes (EBIT) were also significantly higher than the prior-year period (prior year: 591 million euros). The EBIT margin is 18%. The high level of incoming orders also continued in the first half of the new fiscal year. Incoming orders increased to 5.49 billion euros (prior year: 4.20 billion euros).

"We have had a good start to the fiscal year with revenue in the first half of the year once again exceeding the very good level from last year. All four ZEISS segments have contributed to this considerable growth dynamic despite challenging conditions," said Dr. Karl Lamprecht, President & CEO of ZEISS. "We have a global setup, a broad portfolio and have even increased our expenditure on research and development. We are reaping the benefits of this at the moment and this is reflected in our half-year figures, our growth and our capacity for innovation."

Segment development

 

Revenue (in millions of euros)

 

1st six months of 2021/22

1st six months of 2020/21

Difference
(adjusted for currency effects)

Semiconductor Manufacturing Technology

1,170

913

+28% (+28%)

Industrial Quality & Research

1,056

853

+24% (+19%)

Medical Technology*

1,057

920

+15% (+11%)

Consumer Markets

770

681

+13% (+9%)

* Not identical to the Carl Zeiss Meditec Group

To date, ZEISS has also been in a position to maintain the high level of incoming orders and revenue in the first half of the new fiscal year with considerable growth dynamics across all four segments.

The geopolitical and overall economic conditions, in particular the war in Ukraine, as well as the effects of the corona pandemic – currently in China – and the resulting disruptions to supply chains have strongly impacted the individual strategic business units to differing degrees.

The Semiconductor Manufacturing Technology (SMT) segment was substantially affected by the high demand on the semiconductor market and achieved an additional boost to its already high revenue. There was strong demand for both the innovative extreme ultraviolet (EUV) lithography systems and the deep ultraviolet (DUV) lithography systems. Alongside digitalization, trends such as artificial intelligence or autonomous vehicles have further propelled the semiconductor market to an all-time high. In the future, the next EUV generation, High-NA EUV, will enable the production of more powerful and more energy-efficient chips at lower costs.

The world's most precise mirror from ZEISS make EUV lithography possible
At the heartbeat of digitalization: ZEISS and ASML have been developing mirrors for the next EUV generation, High-NA, some time now. The new mirrors further increase the resolution of the EUV lithography optics. This technology makes it possible for semiconductor manufacturers to create even finer structures on the wafers (the basis of a chip)

The positive trend toward high demand for the products and solutions from the direct-to-market segments continued in the first half of the current fiscal year.

In the first six months, the Industrial Quality & Research (IQR) segment achieved very good half-year revenue, which was significantly higher than the prior year. Both strategic business units, Industrial Quality Solutions and Research Microscopy Solutions, and all regions contributed to the significant double-digit growth. Growth in the AMERICAS region was particularly strong versus the prior year. The positive development in areas like electron microscopy, especially in the semiconductor and battery application fields, contributed to this growth. The business with solutions for industrial quality assurance has also performed well in the fields of new energy vehicles and medical technology.

The positive development in the Medical Technology segment continued in the first six months of 2021/22, and globally this market recovery has already exceeded the level it had been at before the COVID-19 pandemic. Incoming orders remain at a high level with an increase in orders received. Revenue saw double-digit percentage growth despite ongoing bottlenecks in the supply chains and procurement of materials. The two strategic business units, Microsurgery and Ophthalmic Devices, contributed to this growth. All regions recorded positive developments, and the APAC region made the largest contribution to this growth.

The Consumer Markets segment also achieved double-digit growth in revenue in the first two quarters of the current fiscal year versus the prior-year period. This increase in revenue is due primarily to innovations, digital products and services in all regions in the field of eye care, and the improved business with nature and sports optics and ZEISS cine lenses.

Key figures

Free cashflow amounted to 709 million euros (prior year: 609 million euros). Group equity rose by 11% to 6.117 billion euros in comparison with fiscal year end 2020/21 (30 September 2021: 5.494 billion euros), corresponding to an equity ratio of 54% (30 September 2021: 52%).

ZEISS intends to continue its growth trajectory by making further large investments in digitalization and increasing capacities, in particular at Semiconductor Manufacturing Technology. In conjunction with the consistently high expenditure on research and development, the ZEISS innovation strategy is a cornerstone of the company's expedited growth.

At 531 million euros, the expenditure on research and development amounted to around 13% of revenue in the first half of 2021/22 (first six months of 2020/21: 425 million euros).

The investments in plant, property and equipment totaled 307 million euros in the reporting period (first six months of 2020/21: 264 million euros) as compared to depreciations in the amount of 143 million euros (first six months of 2020/21: 127 million euros).

Net liquidity at the reporting date of 31 March 2022 was 2.249 billion euros, which equates to an increase of +129 million euros versus the end of fiscal year 2020/21.

The global orientation of ZEISS creates a stabilizing effect, and once again all regions contributed to the continued strong growth trajectory. The APAC region got off to an excellent start in the new fiscal year. Higher rates of growth were also achieved in the EMEA und AMERICAS regions as compared with the prior-year period. In the AMERICAS region, this was due in part to the strong performance in the US.

"The positive development of all our financial KPIs confirms we had a good start to fiscal year 2021/22. This is also evident in the considerable expenditure on research and development, which totaled over half a billion euros in these six months alone," said Dr. Christian Müller, CFO of Carl Zeiss AG. "What's more, we are also planning on continuing the ZEISS Group's growth trajectory with substantial investments in digitalization, and on moving forward with increasing our capacities. This includes the targeted expansion of infrastructure and recruiting more staff. In 2022 alone, 500 new employees have already been hired at the Semiconductor Manufacturing Technology segment at our site in Oberkochen, Germany, and more will follow."

At the end of the first half of the fiscal year (31 March 2022), ZEISS had a global workforce of 36,855 employees in its business units. The headcount therefore increased by more than 7% versus 31 March 2021. This reflects the growth trend in all segments.

Dr. Karl Lamprecht, President & CEO of Carl Zeiss AG
Dr. Karl Lamprecht, President & CEO of Carl Zeiss AG
Dr. Christian Müller, CFO of Carl Zeiss AG
Dr. Christian Müller, CFO of Carl Zeiss AG

Outlook

"Future business development depends primarily on the challenges presented by the geopolitical situation and potential disruptions to the supply chains – and, judging from what we can see in China, the COVID-19 pandemic is not over yet in the wider world. Nevertheless, we currently assume that growth will also continue in all four ZEISS segments in the second half of the fiscal year," said Lamprecht. "It is crucial that we remain close to our customers, provide them with optimum support in the face of these new challenges, and that we – and this is typical for ZEISS – continue to heavily invest in the future."

Press Contact

Jörg Nitschke
Head of Corporate Brand and Communications
ZEISS Group
Phone: +49 7364 20-3242
joerg .nitschke @zeiss .com

About ZEISS

ZEISS is an internationally leading technology enterprise operating in the fields of optics and optoelectronics. In the previous fiscal year, the ZEISS Group generated annual revenue totaling 7.5 billion euros in its four segments Semiconductor Manufacturing Technology, Industrial Quality & Research, Medical Technology and Consumer Markets (status: 30 September 2021).

For its customers, ZEISS develops, produces and distributes highly innovative solutions for industrial metrology and quality assurance, microscopy solutions for the life sciences and materials research, and medical technology solutions for diagnostics and treatment in ophthalmology and microsurgery. The name ZEISS is also synonymous with the world's leading lithography optics, which are used by the chip industry to manufacture semiconductor components. There is global demand for trendsetting ZEISS brand products such as eyeglass lenses, camera lenses and binoculars.

With a portfolio aligned with future growth areas like digitalization, healthcare and Smart Production and a strong brand, ZEISS is shaping the future of technology and constantly advancing the world of optics and related fields with its solutions. The company's significant, sustainable investments in research and development lay the foundation for the success and continued expansion of ZEISS' technology and market leadership. ZEISS invests 13 percent of its revenue in research and development – this high level of expenditure has a long tradition at ZEISS and is also an investment in the future.

With around 37,000 employees, ZEISS is active globally in almost 50 countries with around 30 production sites, 60 sales and service companies and 27 research and development facilities (status: 31 March 2022). Founded in 1846 in Jena, the company is headquartered in Oberkochen, Germany. The Carl Zeiss Foundation, one of the largest foundations in Germany committed to the promotion of science, is the sole owner of the holding company, Carl Zeiss AG.

Further information at www.zeiss.com

Press Contact

Jörg Nitschke
Head of Corporate Brand and Communications
ZEISS Group
Phone: +49 7364 20-3242
joerg .nitschke @zeiss .com

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