Carl Zeiss Meditec AG grows in all business units

First quarter shaped by revenue increase and higher R&D expenditure

JENA/Germany, 11.02.2015.

Aided by currency effects, Carl Zeiss Meditec AG started financial year 2014/15 by increasing its revenue by 13.6 percent to € 241.1 million (previous year: € 212.3 million). In spite of increased R&D spending, earnings before interest and taxes (EBIT) reached € 27.9 million in the first quarter (previous year: € 26.5 million), which corresponds to an EBIT margin of 11.6 percent (previous year: 12.5 percent). All three strategic business units (SBUs) achieved growth in the reporting period; development in the individual regions varied.

Adjusted for the increase in costs for the strategic research project in ophthalmology announced in December 2014, the EBIT margin would have been slightly higher, at 12.9 percent, than the previous year's EBIT margin of 12.6 percent. At € 19.4 million, consolidated net income was down by 9.4 percent compared with the same period of the previous year (€ 21.4 million). This decline was mainly attributable to a significantly lower result from currency hedging transactions compared with the previous year. In terms of revenue, currency effects once again contributed to growth, accounting for around 3 percent, in addition to minor acquisition effects; on an adjusted basis, growth would have amounted to 9 percent.

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the 3-month figures: "Our company is showing positive development. With targeted investments in the field of ophthalmology and microsurgery and with cost-cutting in diagnostics, we are laying the foundations today to sustainably secure our growth and earnings power in future."

Revenue by business unit

In the first quarter, business development was reported on the basis of a modified structure for the first time. The presentation of figures since the beginning of financial year 2014/15 is based on business fields and the respective, underlying market segments. Accordingly, surgical microscope for ophthalmic surgery are no longer be allocated to the Microsurgery SBU, but are instead assigned to the Surgical Ophthalmology SBU. Diagnostic devices used preoperatively for cataract surgery, which were previously assigned to the Ophthalmic Systems SBU, are now part of the business of the Surgical Ophthalmology SBU.

Based on the modified structure, the Microsurgery SBU increased its revenue, on a comparable basis, by 4.6 percent to € 67.8 million (previous year: € 64.8 million), which corresponds to growth of 2.6 percent, after adjustment for currency effects.

The revenue of the Ophthalmic Systems SBU in the new structure (comparatively) climbed by 13.5 percent to around € 91.7 million, compared with the previous year's figure of € 80.8 million, although the area of diagnostics within this sector continues to be hampered by strong pricing and competitive pressure, to which the Company shall respond in the coming financial year with cost-cutting measures. Positive development was achieved in this SBU in the areas of Refractive Lasers and Service. Adjusted for currency effects, the SBU’s revenue increased by 8.6 percent.

Once again the highest growth rate was achieved by the now newly assembled Surgical Ophthalmology SBU. This SBU's revenue increased by 22.4 percent, on a comparable basis, to around € 81.6 million (previous year: € 66.7 million). Even without taking into consideration the first-time consolidation of Aaren Scientific Inc., Ontario, California, which specializes in the manufacture of intraocular lenses, this SBU achieved an organic growth rate well into the double-digit percentage range.

Development by region

As in the previous years, there was a balanced distribution of revenue across the three reporting regions, APAC (Asia/Pacific region), the Americas and EMEA (Europe, Middle East and Africa).

The APAC region recorded revenue growth of 4.8 percent. Adjusted for currency effects, growth amounted to 10.8 percent. Following a strong first six months with additional pull-forward effects due to a pending VAT increase in the Japanese market, there was a slowdown in growth in the second half of the year, as anticipated. Once again, China, Southeast Asia and Australia made a significant contribution to growth throughout the year.

In the Americas region revenue decreased by 9.4%. Adjusted for currency effects, this decline would still have amounted to 6.8 percent.

Finally, the EMEA region achieved sound revenue growth. In particular the core markets Germany, France and the United Kingdom contributed significantly to the overall growth of 6.7 percent. In Russia, however, there were substantial declines in revenue, following the expiry of government investment schemes, while revenue in Southern Europe continued to rise.


The Company expects to be able to increase its revenue at least in line with average market growth in the coming financial years. "We are encouraged by the fact that case-number-dependent revenue from the product and service business has already reached a high level. In the medium term, our aim is to generate one third of our total revenue by recurring revenue," says Ludwin Monz and sees the company strengthened by innovative new products launched during the past few months. In addition to the new intraocular lens CT Lucia, these include the IOL Master 700, which is setting new standards in biometry with innovative Swept Source OCT technology, and the first ophthalmic surgery microscope with integrated OCT camera, the OPMI Lumera 700 Rescan.

In order to realize growth opportunities in the area of ophthalmic surgery, the Carl Zeiss Meditec Group also plans to make targeted increases in spending on research and development. "We are making targeted investments in the establishment of a new product segment. Unfortunately, this will impact our EBIT margin in the short term; however, up until financial year 2018/2019, the EBIT margin will remain within an attractive range of between 13 and 15 percent."

Revenue by strategic business unit1
Figures in EUR '000

3 Months
FY 2013/14
3 Months
FY 2014/15
Change from previous year

Ophthalmic Systems 80,817 91,742 + 13.5%
Surgical Ophthalmology 66,665 81,570 + 22.4%
Microsurgery 64,797 67,778 + 4.6%
Revenue by region
Figures in EUR '000

3 Months
FY 2013/2014
3 Months
FY 2014/2015
Change from previous year

EMEA 70,522 86,549 + 22.7%
Americas 77,568 80,639 + 4.0%
Asia/Pacific 64,189 73,902 + 15.1%

1 For better comparability the previous year's figures have been adjusted in line with the new structure.

Press contact:
Sebastian Frericks, Investor Relations, Carl Zeiss Meditec AG
Phone +49 (0)3641 220-331, Email: press .meditec @zeiss .com

For investors:
Sebastian Frericks, Investor Relations, Carl Zeiss Meditec AG
Phone +49 (0)3641 220-116, Email: investors .meditec @zeiss .com


Brief profile

Carl Zeiss Meditec AG (ISIN: DE 0005313704), which is listed on TecDAX of the German stock exchange, is one of the world’s leading medical technology companies. The Company supplies innovative technologies and application-oriented solutions designed to help doctors improve the quality of life of their patients. It provides complete packages of solutions for the diagnosis and treatment of eye diseases, including implants and consumable materials. The Company creates innovative visualization solutions in the field of microsurgery. The medical technology portfolio of Carl Zeiss Meditec is rounded off by promising, future-oriented technologies such as intraoperative radiotherapy. With almost 3,000 employees, the Group generated revenue of € 909 million in financial year 2013/2014 (to 30 September).

The head office of Carl Zeiss Meditec is in Jena, Germany. The Company has subsidiaries in Germany and abroad; more than 50 percent of its employees are based in the USA, Japan, Spain and France. The Center for Research and Development (CARIn) in Bangalore, India and the Carl Zeiss Innovations Center for Research and Development in Shanghai, China, strengthen the presence in these rapidly developing economies. Around 35 percent of Carl Zeiss Meditec shares are in free float. The remaining approx. 65 percent are held by Carl Zeiss AG, one of the world’s leading groups in the optical and optoelectronic industries.
Carl Zeiss offers innovative solutions for the future-oriented markets Industrial Solutions, Research Solutions, Medical Technology and Consumer Optics. Carl Zeiss AG, Oberkochen, is wholly owned by the Carl Zeiss Foundation.