Carl Zeiss Meditec: First half year 2018/2019: Continued profitable growth for Carl Zeiss Meditec

JENA/Germany, 06.05.2019. In the first half of fiscal year 2018/19 Carl Zeiss Meditec generated revenue of €667.2m, representing an increase of 8.7 percent (adjusted for currency effects: +6.8 percent; prior year's revenue: €613.7m). Earnings before interest and taxes (EBIT) increased significantly to €110.4m (prior year: €88.2m). The EBIT margin also increased, to 16.5 percent (prior year: 14.4 percent).

'In the first half of 2018/19, we have continued on our growth path, with a strong contribution from new products and a high level of recurring revenue', comments Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG.

Solid growth in both strategic business units

The Ophthalmic Devices strategic business unit (SBU) increased its revenue by 9.2 percent in the first half of fiscal year 2018/19 (adjusted for currency effects: +7.4 percent), to €490.7m, compared with €449.3m in the same period of the prior year. This revenue increase is mainly attributed to the unchanged high demand for laser vision correction solutions as well as products for cataract surgery.
Revenue in the Microsurgery SBU grew by 7.4 percent (adjusted for currency effects: +5.2 percent), to €176.5m, compared with €164.4m in the same period of the prior year. Sales of neurosurgical visualization systems for the treatment of tumors and vascular diseases remained strong.

Significant growth, particularly in the EMEA region

Revenue in the EMEA¹ increased by 10.7 percent (adjusted for currency effects: +11.6 percent), to €213.7m (prior year: €193.0m). Germany, France and Spain all posted strong revenue growth.
At €180.9m (prior year: €181.6; -0.4 percent, adjusted for currency effects: -5.0 percent), revenue in the first half of the current fiscal year in the Americas region was slightly below the prior year's figure. This development is primarily attributable to new product launches in the first half of the 2017/18 fiscal year, which had provided a strong boost to revenue in the same period of the prior year.

The APAC² also posted a further increase in its revenue, of 14.0 percent (adjusted for currency effects: +12.3 percent) to €272.6m (prior year: €239.1m). Strongest contribution came again from China and South Korea.

The operating result (EBIT) increased significantly and reached €110.4m in the first half of the current fiscal year (prior year: €88.2m). This increase was mainly driven by a favourable development of product mix with a high share of recurring revenue. The EBIT margin increased from 14.4 percent to 16.5 percent. Adjusted for special effects, this represented an increase to 16.8 percent (prior year: 14.7 percent). Earnings went up to €0.65 per share from the €0.63 of the same period in the previous year.

'With the results of the first half of the fiscal year in the books, we are now able to provide a more precise forecast:' says Dr. Ludwin Monz: 'We expect to achieve sales of € 1,350 million - € 1,420 million for the full year. Due to the strong level of the EBIT margin in the first half, we are adjusting our expectations for the current fiscal year 2018/19 and now expect an EBIT margin between 15.0 percent to 17.5 percent (up from previously: 14.0 percent to16.0 percent). The forecast for the mid-term development of the EBIT margin will be reviewed as part of the publication of the financial results for 2018/19, considering the planned strategic investments in research and development.'

Revenue by strategic business unit

All figures in €m	6 months 2018/19	6 months 2017/18	Change from prior year	Change from prior year*
Ophthalmic Devices	490.7	449.3	+9.2%	+7.4%
Microsurgery	176.5	164.4	+7.4%	+5.2%
Overall group	667.2	613.7	+8.7%	+6.8%

*adjusted for currency effects

Revenue by region

All figures in €m	6 months 2018/19	6 months 2017/18	Change from prior year	Change from prior year*
EMEA	213.7	193.0	+10.7%	+11.6%
Americas	180.9	181.6	-0.4%	-5.0%
APAC	272.6	239.1	+14.0%	+12.3%
Overall group	667.2	613.7	+8.7%	+6.8%

*adjusted for currency effects

¹Europe, Middle East, Africa
²Asia/Pacific

Sebastian Frericks
Director Investor Relations
Carl Zeiss Meditec AG
Phone: [phone]
Fax:
[e-mail]

Brief profile

Carl Zeiss Meditec AG (ISIN: DE 0005313704), which is listed on the MDAX and 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. The Company offers complete solutions, including implants and consumables, to diagnose and treat eye diseases. The Company creates innovative visualization solutions in the field of microsurgery. With approximately 3,050 employees worldwide, the Group generated revenue of €1,280.9m in fiscal year 2017/18 (to 30 September). The Group's head office is located in Jena, Germany, and it 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 Application and Research (CARIn) in Bangalore, India and the Carl Zeiss Innovations Center for Research and Development in Shanghai, China, strengthen the Company's presence in these rapidly developing economies. Around 41 percent of Carl Zeiss Meditec AG's shares are in free float. The remaining approx. 59 percent are held by Carl Zeiss AG, one of the world's leading groups in the optical and optoelectronic industries.

For more information visit our website at: www.zeiss.com/med

Number: 0042-2019-ENG OP

Number of Words: 900
Number of Characters: 6956