Quarterly Results: Carl Zei Meditec AG records revenue grow of 8 percent

JENA/Germany, 07.05.2015.

Aided by currency effects, medical technology company Carl Zeiss Meditec AG increased its revenue by 8 percent in the first six months of the current financial year, to 498.0 million (previous year: 460.9 million). Adjusted for the favorable currency trends, growth was 3.7%. At 61.0 million, earnings before interest and tax (EBIT) were slightly lower than the figure from the previous year (previous year: 63.7 million). The EBIT margin reached 12.2 percent (previous year: 13.8 percent).

Adjusted for special effects, the EBIT margin would have been at 13.6 percent. At 0.37, earnings per share (EPS) were around 24 percent lower compared with the same period of the previous year (previous year: 0.49). This was attributable to a negative result from currency hedging, primarily due to the current strength of the U.S. dollar against the euro.

Development of the strategic business units (SBUs) during the reporting period was mixed. The 2.1 percent decline in revenue in the Microsurgery SBU compared with the previous year (adjusted for currency effects: -5.8 percent), to 141.7 million (previous year: 144.8 million) should be considered against the background of an exceptionally strong year-ago period. The Ophthalmic Systems SBU, on the other hand, boosted by currency gains, achieved revenue growth of 8.8 percent (adjusted for currency effects: 2.4 percent), to 183.2 million (previous year: 168.4 million). A positive trend in the service business and the refractive laser business was once again offset in this SBU by persistently strong pricing and competitive pressure in the diagnostics business. Ultimately, it was the Surgical Ophthalmology SBU that once again closed the first six months with the highest growth rate, increasing its revenue by 17.1 percent to 173.0 million (previous year: 147.8 million). Even excluding the first-time consolidation of Aaren Scientifc, this SBUs growth would still have been in the double digits.

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the 6-month figures: "In spite of varying regional trends and different rates of growth in our business fields, the development of our Company remains positive. Our broad business model and our balanced regional presence proved once more to be a strength."

Development by region

EMEA (Europe, Middle East and Africa): Revenue in the EMEA region increased by 8.1 percent in the first six months of the financial year, to 171.3 million (previous year: 158.5 million). As in the previous quarters, development in the individual markets was very mixed; Germany and the United Kingdom, in particular, achieved good growth.

Americas: Revenue in the Americas region increased by 17.8 percent, to 166.9 million (previous year: 141.7 million). The driving force behind this growth was the strong U.S. dollar. Adjusted for currency effects, growth amounted to 5.2 percent.

APAC (Asia/Pacific region): The revenue generated in the APAC region in the first six months was at almost the same level as the previous year, at 159.8 million (previous year: 160.8 million). While currency effects did not play a significant role in this reporting region, the high comparison basis is now having a noticeably negative impact in Japan. Revenue there fell sharply, after the same period of the previous year had benefited from pull-forward effects associated with a VAT increase. Outside of Japan, however, there was a double-digit percentage increase in revenue in the region.

Outlook

As reported, the Company has set itself the goal to consolidate and expand its market shares. Revenue of around 960 million to 1.0 billion is forecast for the year as a whole. The EBIT margin is expected to be within a range of 13-15 percent in the medium term and has been adjusted in the current financial year for the special effects.

Revenue by strategic business unit

Figures in EUR 000 6 Months 2013/14 6 Months 2014/15 Change from prev. year

Ophthalmic Systems 168,365 183,199 8.8%

Surgical Ophthalmology 147,771 173,040 17.1%

Microsurgery 144,786 141,718 - 2.1%

Revenue by region

Figures in EUR 000 6 Months 2013/14 6 Months 2014/15 Change from prev. year

EMEA 158,464 171,296 8.1%

Americas 141,663 166,862 17.8%

Asia/Pacific 160,795 159,799 - 0.6%

For better comparability the previous years figures have been adjusted in line with the new structure.

Jann Gerrit Ohlendorf

Director Corporate Communications

Carl Zeiss Meditec AG

Phone: 49 3641 220-331

Fax: 49 3641 220-332

press.meditec@zeiss.com

Sebastian Frericks

Investor Relations

Carl Zeiss Meditec AG

Phone: 49 3641 220-116

investors.meditec@zeiss.com

Carl Zeiss Meditec AG

Carl Zeiss Meditec AG (ISIN: DE0005313704), 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 consumables. The company creates innovative visualization solutions in the field of microsurgery. The company's medical technology portfolio is rounded off by promising, future-oriented technologies such as intraoperative radiotherapy.

In fiscal year 2013/14 (ended 30 Sept) the around 3,000 employees of the Carl Zeiss Meditec Group generated revenue of EUR 909 million.

The company headquarters are located 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 Application and Research in India (CARIn) in Bangalore, India, and the ZEISS Innovation Center for Research and D

LINK:	http://applications.zeiss.com/C1256A770030BCE0/WebViewTopNewsAllE/5B8F...
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