Carl Zeiss Meditec Group

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Carl Zeiss Meditec Group

December 10, 2021 Dr. Ludwin Monz, President and CEO

Justus Felix Wehmer, CFO

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Agenda

Digital Strategy in OPT & Cataract Workflow Outlook

Financial Performance Focus Topics

01 02 03 04 05

12M 2020/21 at a Glance

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Record Revenue and Earnings in FY 2020/21

1,335.5

12M 2020/21

12M 2019/20

Revenue

 12M revenue grew by 23.3% (FX-adj. 26.5%) - continued positive development of recurring revenue and device business

 Recovery supported by all regions, APAC region with highest growth rate

 Recovery of device business - order intake at € 1,731 million

+23.3%

€ 1,646.8 million

177.6

12M 2020/21

12M 2019/20

EBIT

 EBIT margin reached 22.7% (prev. year 13.3%)

 EBIT increase supported by business recovery from pandemic, positive product mix and relatively low sales & marketing expenses

 Adj. EBIT margin amounted to 23.0% (prev. year 13.8%)

+110.4%

1.37

12M 2020/21

12M 2019/20

EPS

 Record earnings per share

 Proposed record dividend of EUR 0.90 per share

+93.1%

€ 373.6 million

€ 2.64

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Agenda

Digital Strategy in OPT & Cataract Workflow Outlook

Financial Performance Focus Topics

01 02 03 04 05

12M 2020/21 at a Glance

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Ophthalmic Devices

Profitable growth across the portfolio

990.6

12M 2020/21

12M 2019/20

Revenue

 Growth primarily driven by Refractive Lasers and Surgical Ophthalmology

 FX-adj. revenue increased by 29.8%

+26.8%

€ 1,255.7 million

of total revenue

Revenue Split

76.3%

9.7%

22.9%

12M 2020/21

12M 2019/20

EBIT margin

 Key drivers for margin expansion were high demand for consumables, along with relatively low sales & marketing expenses

OPT MCS

+13.2pcts

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Microsurgery

Strong recovery despite ongoing pressure on supply chain

344.8

12M 2020/21

12M 2019/20

Revenue

 Strong contribution from neuro- and spine surgical portfolio

 Acceleration during fiscal year despite ongoing shortages in supply chain, finishing FY 2020/21 with substantial order backlog

 FX-adj. revenue grew by 17.1%

+13.4%

€ 391.1 million

of total revenue

Revenue Split

23.7%

22.0%

12M 2020/21

12M 2019/20

EBIT margin

 EBIT remains at a strong level

 Some headwind to margins due to product and regional mix as well as FX impact

OPT

MCS

9. Dezember 2021

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384.0

12M 2020/21

12M 2019/20

Americas

 FX-adj. revenue growth by 23.9%

 Solid performance in US, recovery in LatAm

+16.9%

€448.9 million

27.3%

362.4

12M 2020/21

12M 2019/20

EMEA

 Strong growth contributions from UK, Italy, Russia, France and Spain

+19.4%

€432,6 million

26.2%

589.0

12M 2020/21

12M 2019/20

APAC

 Revenue supported by robust performance in China, South Korea and SEA

 Japan remained stable

+29.9%

€765.3 million

46.5%

Americas

EMEA

APAC

Double-digit Revenue Growth Rates across All Regions

Largest contribution again from APAC region

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Selling & marketing expenses

Gross profit

General admin.

expenses

R&D expenses

EBIT

[adj.]

Higher Profitability Driven by Product Mix and Modest Opex

in € million in % of sales

12M 2020/21 12M 2019/20

Income Statement

967.2 58.7

745.5 55.8

303.2 18.4

292.8 21.9

60.7 3.7

56.3 4.2

232.1 14.1

218.8 16.4

373.6

[378.7]

22.7

[23.0]

177.6

[183.8] 13.3

[13.8]

 Gross profit increase due to high share of recurring revenue and positive regional mix

 Opex ratios significantly improved. Selling & marketing expenses expected to normalize in post-pandemic environment.

 Record EBIT margin significantly ahead of latest outlook and mid-term guidance target

9. Dezember 2021

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Adjusted EBIT Margin Amounted to 23.0%

12M 2020/21

€ million 12M 2019/20

€ million Change to PY

%

EBIT 373.6 177.6 +110.4

./.Acquisition-related special effects -7.5 -6.2 +21.6

./.Proceeds from sale of buildings +2.4 - -

Adjusted EBIT 378.7 183.8 +106.1

Adjusted EBIT in % of revenue 23.0% 13.8% +9.2 pcts

Adjusted EBIT margin

 Mainly non-cash charges related to the acquisitions of Aaren Scientific, Inc. and IanTech, Inc.

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-123.0 -70.9

178.5

-285.9

-75.2

362.7

939.9

708.2

Operating Cash-flow Supported by Strong Earnings

 Operating cash flow increase supported by strong earnings and tight management of net working capital

 Cash flow from investing activities in the previous year mainly influenced by acquisition of IanTECH, Inc., in current period including capacity expansion in surgical business

 Financing Cash outflow due to increased deposits at Group Treasury

 Net liquidity at record high of € 939.9 million

Cash flow from investing activities

Cash flow from operating activities

Cash flow from financing activities

Net liquidity

Cash flow statement

12M 2020/21 12M 2019/20

9. Dezember 2021

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€ million

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Agenda

Outlook

Financial Performance Focus Topics

01 02 03 04 05

12M 2020/21 at a Glance

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Recurring Revenue at New Record High in FY 2020/21 Continuous expansion of recurring to total revenue

Share of recurring revenue¹⁾ to total revenue has steadily advanced over two decades

 Significant growth of recurring revenue to a new record high of € 674.5 million

 Proportion of Recurring Revenue reached around 41%

 Refractive Treatment Packs and IOLs most significant drivers

Recurring revenue development

1)Recurring Revenue contains surgical consumables (IOLs, Refractive Treatment Packs, Drapes, Cassettes & Accessories) and Service.

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€ 1,459.3 million

€ 1,335.5 million

€ 1,646.8 million

~35% ~39%

~41%

12M 2018/19 12M 2019/20 12M 2020/21

Thereof

Recurring Revenue

Thereof

Recurring Revenue

Thereof

Recurring Revenue

2002/03 9%

2020/21

~41%

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Launching Major Innovations in Ophthalmic Surgery

ZEISS QUATERA 700 ZEISS CT LUCIA 621 ZEISS VISUMAX 800

- Consistent visual outcomes - Excellent stability

- Intuitive injector handling - ZEISS patented QUATTRO

- Automated ultrasoundPump Power on Demand

- Digitally integrated surgical workflow

- Fast Performance

- Smart robotic assistance - Digitally connected

workflow

- Reduced footprint ZEISS Medical Ecosystem

- One ecosystem connecting devices, data, applications and services

- Enabling a streamlined workflow, clinical planning, education and optimization of clinical procedures

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Designated CEO Dr. Markus Weber

9. Dezember 2021

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Extensive experience in Life Science & Biomedical Research within ZEISS Group

 Jan 2022 Designated CEO of Carl Zeiss Meditec AG

 2019 Member of Executive Board of Carl Zeiss AG and President & CEO, Carl Zeiss SMT GmbH

 2015 President & CEO, Carl Zeiss Microscopy GmbH

 2010 Senior Vice President Corporate Research & Technology, Carl Zeiss AG

 2009 Head of Advanced Development Microsurgery, Carl Zeiss Meditec AG

 since 2002 Various leadership positions at Carl Zeiss SMT GmbH

 2002 PhD in Physics from University of Ulm

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Agenda

Outlook

Financial Performance Focus Topics

01 02 03 04 05

12M 2020/21 at a Glance

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Long-Term Demand Drivers for Our Business Remain in Place

9. Dezember 2021

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Favorable Long-Term Trends

 Aging population and growing affluence

 Rising access to health care in RDEs

 Increasing information access and awareness

 Growing patient load, growing patient expectations

 Rising relevance of tele-medicine and digital, AI driven solutions for diagnostics and surgery will re- shape ophthalmology, ZEISS needs to continue to invest in digitalization in order to stay on top

FY 2021/22 Outlook

 Expecting further sales growth, at least in line with market growth

 Global supply chain situation remains tense – further impact on market growth can’t be ruled out

 EBIT margin expected to be between 19% and 21%

in FY 2021/22 as opex are expected to normalize from pandemic impact

 Targeting mid-term EBIT margin sustainably above 20%. Long-term upside due to recurring revenue while opex investments expected to remain high

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Agenda

Outlook

Financial Performance Focus Topics

01 02 03 04 05

12M 2020/21 at a Glance

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