Carl Zeiss Meditec AG: cautious start to the new financial year, after strong annual results

Negative currency effects hinder growth in the first quarter

JENA/Germany, 13.02.2014.

As a result of unfavourable exchange rates and a slowdown in momentum in Microsurgery, Carl Zeiss Meditec AG ended the first quarter of financial year 2013/2014 with a slight decline in revenue and earnings. At € 212.3 million, revenue was 3.1 percent lower than in the same quarter of the previous year (adjusted for currency effects: +1.7%); earnings before interest and taxes fell to € 26.5 million (previous year: € 31.3 million).

In the first three months of the new financial year, foreign currency losses and a smaller share of revenue generated by the Microsurgery SBU noticeably contributed to the lower operating results recorded by the medical technology provider compared with the same quarter of the previous year. Development of the strategic business units (SBUs) and regions during the first quarter was mixed.

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the 3-month figures: "In spite of a more restrained pace of growth in Microsurgery and the negative currency effects, which were the main cause of the slowdown in growth, our sights for the financial year remain firmly set on our goal to increase revenue at least on a par with general market growth; our objective to sustainably increase our EBIT margin to 15 percent by 2015 also remains unchanged."

Revenue by business unit

The development of business in our strategic business units was varied. The more restrained pace of growth seen recently in Microsurgery was further curbed by negative currency effects.

Revenue decreased year-on-year from € 105.1 million to € 92.1 million. The SBU Ophthalmic Systems grew slightly, in spite of the strong competitive pressure and an unfavourable currency effect. Revenue increased year-on-year from € 84.4 million to € 86.7 million. Once again, the Surgical Ophthalmology SBU performed extremely well. Revenue climbed to € 33.4 million, compared with € 29.5 million in the same quarter of the previous year.

Revenue by region

The EMEA region (Europe, Middle East and Africa) generated revenue of € 70.5 million (previous year: € 76.2 million). This reflects in particular the expiry of government investment schemes in Russia, which had had a particularly positive effect on this region's revenue in the previous quarters.

The development of business in the Americas region was very positive compared with the previous year. Revenue here increased by 6.3 percent year-on-year, to € 77.6 million. Both the USA and Latin America contributed to growth in this region.

Business in the Asia/Pacific region was once again significantly impacted by currency effects. A positive development of business, particularly in China and Southeast Asia, was not enough to compensate for the weak Japanese yen, in particular, combined with a general slowdown in economic growth in Japan. At € 64.2 million, revenue in this region was down by 8.1 percent compared with the previous year. Adjusted for currency effects, however, the region would have reported growth of almost 3 percent.


In spite of difficult general conditions, Ludwin Monz believes the Company is on the right track. "We shall continue to adhere firmly to our investments in R&D, which form the basis for future growth. Strategic foundations, such as the consolidation of our rapidly growing intraocular lens business through the acquisition of Aaren Scientific and the improvement of our market penetration in Turkey, which we announced at the beginning of 2014, support our aim to achieve a regionally balanced market focus geared to a wide range of growth areas."

Revenue by strategic business unit
Figures in EUR '000 3 Months 2012/2013 3 Months 2013/2014 Change from prev. year
Ophthalmic Systems 84,421 86,738 +2.7%
Surgical Ophthalmology 29,472 33,438 +13.5%
Microsurgery 105,106 92,103 -12.4%
Revenue by region
Figures in EUR '000 3 Months 2012/2013 3 Months 2013/2014 Change from prev. year
EMEA 76,209 70,522 -7.5%
Americas 72,973 77,568 +6.3%
Asia/ Pacific region 69,817 64,189 -8.1%

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 visualisation 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. In financial year 2012/2013 (ended 30 September) the Group's more than 2,500 employees generated revenue of almost € 906 million.

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 of Medical and Research Solutions, Industrial Solutions, Eye Care and Lifestyle Products. Carl Zeiss AG, Oberkochen, is fully owned by the Carl Zeiss Foundation.