Carl Zeiss Meditec closes first six months 2023/24 with a slight decline in
revenue due to currency effects

EQS-News: Carl Zeiss Meditec AG / Key word(s): Half Year Report/Half Year
Results
Carl Zeiss Meditec closes first six months 2023/24 with a slight decline in
revenue due to currency effects

08.05.2024 / 06:26 CET/CEST
The issuer is solely responsible for the content of this announcement.

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     Planned reduction of stocks of surgical consumables in the Chinese
     distribution channel successfully completed

JENA, 8 May 2024

Carl Zeiss Meditec generated revenue of around EUR947.2m in the first six
months of fiscal year 2023/24 (prior year: EUR974.5m), corresponding to a
slight decrease in revenue of -2.8% (adjusted for currency effects: -0.7%).
Earnings before interest and taxes (EBIT) declined to around EUR108.2m (prior
year: EUR143.9m). The EBIT margin was 11.4% (prior year: 14.8%).

Dr. Markus Weber, President and CEO of Carl Zeiss Meditec AG: 'As expected,
the first six months were characterized by the reduction in stocks in the
Chinese distribution channel, which we were able to complete as planned in
March. We also had to contend with currency headwinds and a certain
reluctance to invest in the devices business, particularly in the North
American market. We expect to see our growth accelerate again in the second
half of 2023/24 - thanks to the cost-control measures we have taken, we
should also be able to achieve the necessary recovery in our operating
result to reach our annual targets. I am very glad that we were able to
successfully complete the acquisition of D.O.R.C. in the first week of April
- together as a team we will convince our ophthalmology customers with new
innovative workflows for greater efficiency and quality. The integration
work is already in full swing.'

Heterogeneous growth contributions from the strategic business units

Revenue in the Ophthalmology strategic business unit (SBU) decreased by
-5.7% in the first six months of fiscal year 2023/24 (adjusted for currency
effects: -3.7%), to EUR700.6m (prior year: EUR742.6m). In the reporting period
the planned reduction of large stocks of surgical consumables in the Chinese
market led to a decline in revenue, as expected; currency effects,
particularly from the Chinese renminbi, the US dollar and the Japanese yen,
also had a negative impact on revenue development.

The Microsurgery strategic business unit generated revenue of EUR246.5m (prior
year: EUR231.9m), corresponding to growth of 6.3% (adjusted for currency
effects: 9.1%). The business unit benefited from the accelerated processing
of the existing order backlog.

EMEA with double-digit percentage increase in revenue

Revenue in the EMEA (1)region increased by +17.1% (adjusted for currency
effects: +20.7%), to EUR289.4m (prior year: EUR247.2m). Positive contributions
to growth came from Italy, Spain and France, among others.

Revenue in the Americas region decreased significantly by -20.0% (adjusted
for currency effects: -17.9%) from EUR270.7m to EUR216.6m. In North America, in
particular, demand in the devices business was below expectations. More
cautious investment behavior as a result of high interest rates led to a
restrained development in order entry in the reporting period.

The APAC (2) region noted a slight decline in revenue. Revenue decreased by
-3.4% (adjusted for currency effects: -2.0%) to EUR441.1m (prior year:
EUR456.7m). India and Southeast Asia, in particular, made good contributions
to growth. Sales in the Chinese market declined as expected due to the
reduction of stocks of surgical consumables.

EBIT and EBIT margin significantly below prior year

Carl Zeiss Meditec achieved an operating result (earnings before interest
and taxes, EBIT) of EUR108.2m (prior year: EUR143.9m) after the first six months
of fiscal year 2023/24. The weak performance is primarily the result of a
weaker product mix due to a lower proportion of consumables owing to the
reduction in stocks in the Chinese distribution channel. The strict
implementation of the internal cost control program showed initial success
and led to a sideways trend in operating costs.

The EBIT margin was 11.4% after the first six months (prior year: 14.8%),
This includes a one-time special effect of EUR18.2m in connection with the
settlement of a legal dispute. Adjusted for special effects, the EBIT margin
was 10.0% (prior year. 15.3%). The earnings per share benefited from gains
on currency hedges, nevertheless still declined compared with the same
period of the prior year, to EUR0.94 (prior year: EUR1.26) due to the weaker
EBIT.

Specification of the forecast for the further course of business in 2023/24

Following the successful completion of the reduction in stocks of
consumables in the Chinese distribution channel, the company management
expects gross profit and EBIT to recover over the remainder of the financial
year and is providing a quantified forecast for the second half of 2023/24
for the first time.

The full-year forecast anticipates revenue on a comparable basis of EUR2,100m
to EUR2,150m. In addition, the first-time consolidation of the acquisition of
D.O.R.C. BV, which took place on 3 April 2024, is expected to contribute
around EUR100m in revenue in the second half of 2023/24. Including D.O.R.C.,
the revenue forecast is around EUR2,200m to EUR2,250m. The ambitious target of
an EBIT roughly comparable to the prior year is confirmed. However,
achieving this target will require an acceleration in revenue growth within
the second half of the year. The effects of the acquisition of D.O.R.C. on
EBIT in the second half of 2023/24 are not to be included in the target
achievement: It is planned to disclose the contribution from operating
result, integration costs incurred and amortization from the purchase price
allocation, by the end of the financial year at the latest. The target of a
sustainable EBIT margin of over 20% in the medium-term is confirmed.

Revenue by strategic business unit

           All  6 Months  6 Months   Change from  Change from prior year
       figures   2023/24   2022/23  prior year %     (currency-adjusted)
         in EURm
    Ophthalmo-     700.6     742.6          -5.7                    -3.7
          logy
    Microsurg-     246.5     231.9          +6.3                    +9.1
    ery
    Consolida-     947.2     974.5          -2.8                    -0.7
    ted

Revenue by region

    All         6 Months  6 Months   Change from  Change from prior year
    figures      2023/24   2022/23  prior year %     (currency-adjusted)
    in EURm
    EMEA           289.4     247.2         +17.1                   +20.7
    Americas       216.6     270.7         -20.0                   -17.9
    APAC           441.1     456.7          -3.4                    -2.0
    Consolida-     947.2     974.5          -2.8                    -0.7
    ted

Further information on our publication and the Analyst Conference Call on
the results for the first six months of fiscal year 2023/24 can be found at

https://www.zeiss.com/meditec-ag/en/investor-relations/financial-calendar/telephone_conferences.html


Contact for investors and press

Sebastian Frericks
Head of Group Finance & Investor Relations, Carl Zeiss Meditec AG
Phone: +49 (0)3641 220-116
Email: investors.meditec@zeiss.com
www.zeiss.com/press

(1) Europe/Middle East/Africa

(2) Asia/Pacific


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08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        Carl Zeiss Meditec AG
                   Göschwitzer Str. 51-52
                   07745 Jena, Germany
                   Germany
   Phone:          +49 (0)3641 220-0
   Fax:            +49 (0)3641 220-112
   E-mail:         investors.meditec@zeiss.com
   Internet:       www.zeiss.de/meditec-ag/ir
   ISIN:           DE0005313704
   WKN:            531370
   Indices:        MDAX, TecDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1898121

End of News EQS News Service
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1898121 08.05.2024 CET/CEST