Carl Zeiss Meditec posts slight revenue growth

Currency effects and regional variations in business burden results

JENA/Germany, 08.12.2014.

Medical technology company Carl Zeiss Meditec AG closed financial year 2013/2014 with a slight growth in revenue from € 906 million to € 909 million, in spite of unfavorable currency trends. Adjusted for currency effects, growth amounted to 3.0 percent. Earnings before taxes totaled € 120.7 million, which corresponds to an EBIT margin of 13.3 percent. The company achieved substantial increases in case-number-dependent revenue which accounted for as much as 28 percent of revenue in the financial year just ended.

The Carl Zeiss Meditec Group achieved a balanced distribution of revenue across its three regions of the world in financial year 2013/2014. The development of its business units continued to be varied, however. A negative valuation result from currency hedging transactions reduced earnings per share, which reached € 0.92. The distribution of a regular dividend of 40 cents shall be proposed to the Annual General Meeting; the dividend ratio would therefore be slightly higher than the previous year, at around 43%.

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the figures: "In spite of adverse currency trends and to some extent difficult markets, we have achieved a satisfactory result. The rise in case-number-dependent revenue is a very positive development. Once again, we achieved a significant increase in this area, to 28 percent."

Revenue by business unit

The Surgical Ophthalmology SBU achieved the strongest growth in financial year 2013/2014, increasing its revenue by 20.3 percent compared with the previous year to around € 146 million. Even without taking the acquisition of Aaren Scientific into account, this SBU's growth would have been in the double digits. The first intraocular lens (IOL) in the standard segment to be jointly developed and produced in Ontario (USA), CT LUCIA, was launched on the market at the end of the financial year. The successful integration of this company, which was acquired at the beginning of 2014, enables Carl Zeiss Meditec AG to offer its customers a particularly comprehensive range of IOLs in the growth market for cataract surgery.

The Microsurgery SBU, which has traditionally been the strongest contributor to sales, had to sustain its position in the financial year in a market that was hampered by adverse exchange rates, and generated revenue of € 390 million, which was close to the previous year's revenue of € 394 million. Adjusted for currency effects, this would have equated to growth of 2.2 percent.

Revenue in Ophthalmic Systems SBU declined by 4.6 percent to around € 373 million (previous year: € 391 million). In particular devices for ophthalmic diagnosis came under intense competitive pressure in the financial year. Adjusted for currency effects, this decline would have amounted to 1.8 percent.

Revenue 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 unit
Figures in EUR '000 FY 2012/2013 FY 2013/2014 Change from prev. year
Ophthalmic Systems 390,954 372,892 - 4.6%
Surgical Ophthalmology 121,310 145,982 + 20.3%
Microsurgery 394,181 390,381 - 1.0%
Revenue by region
Figures in EUR '000 FY 2012/2013 FY 2013/2014 Change from prev. year
EMEA 307,587 328,063 + 6.7%
Americas 327,481 296,781 - 9.4%
Asia/Pacific 271,377 284,411 + 4.8%

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.