Corporate PresentationDecember 2017
Carl Zeiss Meditec Group
2Carl Zeiss Meditec Group
Agenda
At a Glance
Strategy
Facts and Figures
Outlook
Appendix
3Carl Zeiss Meditec Group
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
4Carl Zeiss Meditec Group
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
5Carl Zeiss Meditec Group
Agenda
At a Glance
Strategy
Facts and Figures
Outlook
Appendix
6Carl Zeiss Meditec Group
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
7Carl Zeiss Meditec Group
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
8Carl Zeiss Meditec Group
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
9Carl Zeiss Meditec Group
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%
10Carl Zeiss Meditec Group
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)
30.5% of total revenue1)
37.7% of total revenue1)
Americas EMEA APAC
1) FY 2016/17
11Carl Zeiss Meditec Group
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
12Carl Zeiss Meditec Group
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
13Carl Zeiss Meditec Group
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
14Carl Zeiss Meditec Group
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.
15Carl Zeiss Meditec Group
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
16Carl Zeiss Meditec Group
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
17Carl Zeiss Meditec Group
Agenda
At a Glance
Strategy
Facts and Figures
Outlook
Appendix
18Carl Zeiss Meditec Group
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
19Carl Zeiss Meditec Group
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
20Carl Zeiss Meditec Group
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
21Carl Zeiss Meditec Group
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
Revenuein € million
Revenuein € million
Revenuein € million
■ FX-adj. growth of +6.4%
■ U.S. returns to expected levels of growth despite continuous intense
competitive environment
■ FX-adj. growth of +17.1%
■ Strong growth contribution from
China, India, South East Asia and
South Korea
■ FX-adj. growth of +3.9%
■ Continued heterogeneous
development with stable environment
in core markets, while some
challenges remain in specific markets
22Carl Zeiss Meditec Group
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
23Carl Zeiss Meditec Group
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
24Carl Zeiss Meditec Group
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
+
+
25Carl Zeiss Meditec Group
Agenda
At a Glance
Strategy
Facts and Figures
Outlook
Appendix
26Carl Zeiss Meditec Group
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)
27Carl Zeiss Meditec Group
Agenda
At a Glance
Strategy
Facts and Figures
Outlook
Appendix
28Carl Zeiss Meditec Group
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
29Carl Zeiss Meditec Group
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
30Carl Zeiss Meditec Group
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