Carl Zeiss Meditec Group · in fields such as Retina surgery/ vitrectomy & instruments, Glaucoma...

Corporate PresentationDecember 2017

Carl Zeiss Meditec Group

2Carl Zeiss Meditec Group

Agenda

At a Glance

Strategy

Facts and Figures

Outlook

Appendix


Prevalence of Age-related Eye Diseases on the Rise

40% Cataract

5% Glaucoma

10% AMD

Portion of people who likely develop eye diseases at some stage in life:

> 25 millions of cataract surgeries a year

performed globally

Cataract is one of the leading cause of visual impairment worldwide

>75%of people with diabetes will develop some form of Diabetic Retinopathy

8% of the world’s population lives with diabetes


Financial Profile: We Have Achieved Continuous Growth over the Past Five Years

12/13 13/14 14/15 15/16

906.4 909.3 1040.1 1088.4

Revenuein € million Significant revenue growth

over the last five years

Strong level of profitability (mid-term outlook: 14-16 %

adj. EBIT margin)

16/17

1189.9

12/13 13/14 14/15 15/16 16/17

14.6 13.3 12.6 14.2 15.2

EBIT margin(reported) in %

Headquarters in Jena, Germany

Around 3,000 employees worldwide

Listed on the TecDAX

59% of shares held by Carl Zeiss AG


Agenda

At a Glance

Strategy

Facts and Figures

Outlook

Appendix


Driving Medical Innovation to Help Doctors Optimize Patient Outcomes

Comprehensive systems and solutions to diagnose and treat eye diseases

Systems and consumables for cataract, retinal and refractive surgery

Focus on networking of systems and the integrated management of data, to make workflows in hospitals and medical practices efficient

Complete product range of visualization solutions for minimally invasive surgical treatments (e.g. Neuro/ENT, spinal, dental)

Intra-operative diagnostics to enhance effectiveness and safety of surgical procedures complete with cutting-edge video technology and three-dimensional imaging

Revenue split2015/16

Revenue split2016/17

Ophthalmic Diagnostics Refractive Laser Surgery Surgical Ophthalmology (Cataract)

Visualization Surgical Oncology

MicrosurgeryOphthalmic Devices


Several Key Trends are Influencing Our Markets

Aging of the population and growing affluence

Rising access to health care in RDEs

Increasing information access and awareness

Budget constraints

Growing patient load, growing expectations


98 100 112 123 146

Strong Commitment to R&D Remains Key for Further Growth Opportunities

R&D expenses | R&D ratio to revenuein € million in %

R&D ratio target range of 11%–12%

~ 16% of current total workforce are

employed in R&D

Ø 11%–12%

2016/172015/162014/152013/142012/13

Continuous R&D investment is resulting in a strong portfolio of gold standard products and solutions

Significant product launches in 2016/17, including KINEVO ® 900 and EXTARO ® 300 in Microsurgery, ReLEx® SMILE U.S. market launch, CLARUS™ 500 in Ophthalmology


Recurring Revenue Has Allowed for Profitable Growth and Less Cyclicality

1) Intraocular lenses (IOLs) and various consumables are sources of recurring revenue (e.g. viscoelastics, phaco cassettes, refractive laser treatment packs, drapes, etc.)

Recurring revenue1)

In %

30

9

2016/172003/04

2016/17, Carl Zeiss Meditec Group reached

proportion of total revenue of 33%

Organic growth

We steadily broaden our service offering to enhance the share of recurring revenue

More recurring revenue has allowed for profitable growth and less cyclicality

Growth from acquisitions

33%

9%


Our Revenue is Well-diversified across all Regions

Carl Zeiss Meditec Group’s largest markets in terms of salesRanked by proportion of total revenue

US #1

Japan #3

China #2Germany #4

France #5

India #6

31.8% of total revenue1)



Americas EMEA APAC

1) FY 2016/17


CLARUS 500: High Resolution Imaging across theentire Retina

■ Ultra-widefield (UWF) fundus imaging system to conductcomprehensive fundus examinations in high resolution and truecolours

■ Ultra-widefield is the fastest developing segment in fundus imagingwith a limited number of competitors and significant further growthpotential in the ophthalmologist and optometrist markets

ZEISS CLARUS 500CIRRUS photo 800


Strong Adoption of ReLEx® SMILE Drives Growth in Refractive Lasers and Generates Recurring Revenue

LASIK SMILE

“Flapless” surgery with ReLEX® smileA minimally invasive alternative to LASIK

Small incision created inside the intact cornea – 80% smaller side cut as compared to LASIK

We have treated more than 1 million eyes since 2011

More than 2/3 of all procedures were performed during the last two years

Installed Base: more than 750 VisuMax

About 60% of Refractive Laser Business consists of Recurring Revenues (Service and Treatment Pack Revenue)

Strong growth in APAC (China, South Korea, SEA)

FDA approved in Sept. 2016, U.S. launch in March 20171) Treatment pack

Quickly Gaining PopularityEyes per year | Percentage of SMILE procedures in SMILE clinics

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000


Workflow Solutions for Cataract –Enable Effective and Efficient Treatment

Biometry Visualization of the surgery area

Computer-aided surgery

Automatic data transfer

IOLMaster® OPMI LUMERA® CALLISTO eye ® FORUM®

AT LISA® tri AT LARA® CT LUCIA ®

Cataract Suite MarkerlessIntegrated Solution for precise Cataract Surgery & Implementation

Innovative Portfolio of Premium and Standard Intraocular Lenses


IOLMaster ® 700 / FORUM Workplace Solutions

FORUM Software Helps To Provide A Smooth Transfer from Diagnostics into the OR

OPMI LUMERA®

VISALIS 500 ®

AT LISA tri®

Diagnostics & Treatment Planning Efficient Surgical Workflow

Connectivity guarantees smooth communication between devices to make workflows efficient.


We Have a Strong Position in Microsurgery With A Durable Competitive Advantage

√ Increasing prevalence of chronic diseases

Rising geriatric population at risk of vascular diseases & cancer

Economic pressure and stringent costmanagement while still a high reimbursement environmentcompared to other specialties

√

√

Major Developments Affecting Our Customers in Microsurgery

√ Technology leadershipStrong brand

High customer loyalty

High market share

Long product lifecycles

Large installed base

Largest R&D team in the world1)

√

√

√

√

√

√

Strong position of Carl Zeiss Meditec in Microsurgery

1) Referring to surgical microscopes


KINEVO 900 - Powerful Robotic Visualization System that Delivers Unparalleled Real-time Insights

■ Next-generation movement and positioning capabilities with state-of-

the-art intraoperative visualization modalities

■ Surgeon-controlled Robotics enable intelligent positioning

functions such as PointLock & PositionMemory, minimizing

disruption in system repositioning.

■ Fully integrated Micro-Inspection Tool QEVO®1 expands the

visualization capabilities of a microscope to eliminate blind spots.

■ Introduction of Digital Hybrid Visualization: Leading with 3D

and 4K technology, it gives the user an alternative to optical

visualization.

■ Launch of expanded functionalities of Robotic Visualization System

KINEVO 900 in the USA in October 2017


Agenda

At a Glance

Strategy

Facts and Figures

Outlook

Appendix


Solid Growth in Revenue and Earnings After 12M 16/17

1,088.4

1,189.9

Revenuein € million

+9%12M 2016/17

12M 2015/16

EBITin € million

154.3

180.812M 2016/17

12M 2015/16

+15%

1.21

1.57

EPSin €

+30%12M 2016/17

12M 2015/16

EBIT up 17.2% vs. prev. year to € 180.8 mn, contains special effect from Q1 16/17

(Ontario divestment) of € 7.5 mn

EBIT margin of 15.2% (prev. year: 14.2%); adjusted EBIT margin at 14.8% (prev.

year: 14.7%)

EBIT development supported by mix improvement despite higher level of investment

Revenues grew by 9.3% (fx-adj. 9.3%), supported by all SBUs

Revenue of € 1,189 mn in line with our forecast of € 1,150 – 1,200 mn

Strongest growth contribution from SBU Ophthalmic Devices and APAC region

EPS primarily increased due to the positive development of EBIT, hedging

gains of € 9 mn and slightly lower tax rate compared to last year


Strong Revenue Contribution from Refractive Laserand IOL Business

74%of total revenue

791.9

880.5 +11.2% 12M 2016/17

12M 2015/16

Ophthalmic Devices Revenuein € million

Revenue splitin %

■ FX-adj. sales growth of 11.2%

■ Strong growth in Refractive Laser business particularly in APAC region, first contribution from

U.S. roll-out of SMILE – Continued growth in

Surgical Ophthalmology

■ EBIT margin above previous year due to

increased share of recurring revenue despite high

level of strategic investment


Steady Growth in Microsurgery

26%of total revenue

296.5

309.4 +4.4% 12M 2016/17

12M 2015/16

Microsurgery Revenuein € million

Revenue splitin %

■ FX-adj. sales growth of 4.3%

■ Slight growth in Neuro/ENT category

■ Profitability remains on a high level despite higher

R&D cost

■ Good progress with launch of KINEVO 900 and EXTARO 300


31.8%

APAC Continued Dynamically During 12M 16/17

30.5%

37.7%

354,0

378,2 +6.8%12M 2016/17

12M 2015/16

352.7

363.5 +3.0%12M 2016/17

12M 2015/16

381.7

448.2 +17.4%12M 2016/17

12M 2015/16

Americas

EMEA

APAC




■ FX-adj. growth of +6.4%

■ U.S. returns to expected levels of growth despite continuous intense

competitive environment


■ Strong growth contribution from

China, India, South East Asia and

South Korea


■ Continued heterogeneous

development with stable environment

in core markets, while some

challenges remain in specific markets


EBIT Margin Has Reached 15.2% Supported by Mix Improvements and one-off Gain in Q1 2016/17

Income statement

in € million in % of sales

Gross profit 656.7 55.2

579.5 53.2

Selling & marketing expenses

289.6 24.3

255.3 23.5

General admin. expenses 48.1 4.0

46.5 4.3

R&D expenses 145.8 12.3

123.4 11.3

EBIT[adj.]

180.8[176.2]

15.2[14.8]

154.3[159.5]

14.2[14.7]

12M 2016/17 12M 2015/16


Equity Increase Has further Strengthened Net Cash and Provides us with Financial Flexibility to Grow

■ Phasing of revenue in Q4 as well as investments in net working capital result in weaker operating cash flow,

partly related to high number of product launches including demo units and related supply chain

realignment

■ Our balance sheet and financial ratios remain very strong

■ Net cash increased year-over-year due to capital increase in March 2017

12 Months2016/17

12 Months2015/16

in € million in € million

Cash flow from operating activities 37.7 111.8

Cash flow from investing activities -55.9 77.3

Cash flow from financing activities 14.5 -195.0

Net cash and cash equivalents (30 Sep) 565.0 334.6


We Constantly Look for Growth in Ophthalmology and Evaluate External Opportunities Accordingly

Strategic Priorities in Ophthalmology

+Improve access to the U.S.

market and presence in the

U.S. and/or Japan

+

+

+Improve our scale and

market share in Surgical

Ophthalmology

+Grow recurring share of revenue with

high share of consumables enabling

low-cost production technologies

Further drive digitization and integration

of diagnostics business to create new

value-added services through small to

mid sized acquisitions

Technology acquisitions or collaborations

in fields such as Retina surgery/

vitrectomy & instruments, Glaucoma

treatment (implants), Dry Eye

Improve market position in cataract to

enable more “bundling“ of devices

and implants and increase share-of-

wallet at customers

+

+


Agenda

At a Glance

Strategy

Facts and Figures

Outlook

Appendix


We Will Continue on Our Path of Profitable Growth Ahead of Our Markets

Our strategic priorities:

■ Drive customer orientation and generate outstanding customer experience

■ Empower Clinicians to achieve Better Patient Outcomes & increased Efficiency

■ Lead digitalization in our markets and further broaden our portfolio of digital solutions

■ Grow and expand the Market for Refractive Laser Surgery

■ Further increase the share of Recurring Revenue

Key ratio 12 Months 2016/17 FY 2017/18 goals Mid-term goals

Consolidatedrevenue € 1,189.9 million To grow revenue at least as

fast as our markets growTo grow revenue at least as

fast as our markets grow

EBIT-Margin 15.2%(adjusted: 14.8%)

14%–16%(on adjusted basis)

14%–16%(on adjusted basis)


Agenda

At a Glance

Strategy

Facts and Figures

Outlook

Appendix


Events 2018

February 12 Publication of Q1 17/18 results

April 10 Annual General Meeting, Weimar

May 15 Publication of HY 17/18 results

August 10 Publication of Q3 17/18 results

December 7 Publication of FY 17/18 results


Contact

Sebastian FrericksDirector Investor Relations

Phone: +49 (0) 36 41 / 2 20 - 1 16

Fax: +49 (0) 36 41 / 2 20 - 1 17

Email: [email protected]

Web: www.zeiss.com/meditec-ag/investor-relations

Carl Zeiss Meditec Group · in fields such as Retina surgery/ vitrectomy & instruments, Glaucoma...

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Transcript of Carl Zeiss Meditec Group · in fields such as Retina surgery/ vitrectomy & instruments, Glaucoma...