Carl Zeiss Meditec Group Analyst Conference 2016/17
Dr Ludwin Monz, CEO Dr Christian Müller, CFO
December 8, 2017
Disclaimer
This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Carl Zeiss Meditec AG or any present or future member of its Group nor should it or any part of it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in Carl Zeiss Meditec AG or any member of its Group or commitment whatsoever.
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Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors changing business or other market conditions and the prospects for growth anticipated by the management of Carl Zeiss Meditec AG. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Carl Zeiss Meditec AG does not undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements which speak only as of the date of this presentation.
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Agenda
1
2 Financial Performance 2016/17 at a Glance
3 Highlights
4 Outlook
1,21
1,57
1.088,4
1.189,9
Revenue
in € million
+9.3%
12M 2016/17
12M 2015/16
■ 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
Significant Revenue Growth Ahead of our Markets
EBIT
in € million
EPS
in €
+29.8%
■ 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
■ EPS primarily increased due to the positive development of EBIT, hedging gains of € 9 mn and slightly lower tax rate compared to last year
154,3
180,8
12M 2016/17
12M 2015/16
12M 2016/17
12M 2015/16
+17.2%
Agenda
1
2 Financial Performance 2016/17 at a Glance
3 Highlights
4 Outlook
Ophthalmic Devices: Positive Contribution from all Businesses
74.0%
of total revenue 791,9
880,5 +11.2%
12M 2016/17
12M 2015/16
Ophthalmic Devices Revenue
in € million
Revenue split
in %
■ 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
Microsurgery: Solid Growth while Innovation Roll- Out Continues
26.0%
of total revenue 296,5
309,4 +4.4%
12M 2016/17
12M 2015/16
Microsurgery Revenue
in € million
Revenue split
in %
■ 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 Drives Top Line Growth
30.5%
37.7%
354,0
378.2 +6.8%
12M 2016/17
12M 2015/16
352,7
363.4 +3.0%
12M 2016/17
12M 2015/16
381,7
448.2 +17.4%
12M 2016/17
12M 2015/16
Americas
EMEA
APAC
Revenue
in € million
Revenue
in € million
Revenue
in € million
■ FX-adj. growth of +6.4%
■ U.S. returns to expected levels of growth despite continuous intense competitive environment
■ FX-adj. growth of +3.9%
■ Continued heterogeneous
development with stable environment in core markets, while some
challenges remain in specific markets
■ FX-adj. growth of +17.1%
■ Strong growth contribution from China, India, South East Asia and South Korea
EBIT Margin Reaches 15.2% Supported by Mix Improvements and one-off Gain in Q1
Income statement
in € million in % of salesGross 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
1)[adj.]
180.8
[176.2]
15.2
[14.8]
154.3 [159.5]
14.2 [14.7]
12M 2016/17 12M 2015/16
1) Includes special effect from divestment of non-core assets at Ontario, CA, site amounting to 7.5 mn
Adjusted EBIT Margin at High End of Forecast Range
■ Acquisition-related special items in 12M 2016/17 contain one-off gains from the sale of non-core assets at Ontario, CA, site to an effect of € 7.5 mn, as disclosed in Q1 16/17.
■ Adjusted EBIT margin within FY 2016/17 forecast range of 13 - 15%
12 Months 2016/17
12 Months 2015/16
Change to prev. year
in € million in € million in %
EBIT 180.8 154.3 + 17.2
Acquisition-related special effects 4.6 - 3.8 -
Restructuring/reorganization - - 1.4 -
Adjusted EBIT 176.2 159.5 + 10.5
Adjusted EBIT in % of revenue 14.8% 14.7% + 0.1%-pts.
Cash flow from financing activities
-195,0
77,3
111,8
14,5 -55,9
37,7
Weaker Operating Cash Flow partly due to Product Launches and Related Supply Chain Realignment
Cash flow from operating activities
Cash flow from investing activities
■
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
Cash flow statement
in € million
12M 2016/17 12M 2015/16
Key ratio
2)Sep 30, 2017
Change to Sep 30, 2016
Equity ratio 76.5 % + 8.3%-pts
Net cash and cash equivalents € 565.0 mn + 68.9%
Net working capital € 326.8 mn + 37.9%
Trade receivables in % of revenue 25.0% + 1.1%-pts.
Inventory in % of revenue 19.7% + 0.6%-pts
2) See definition page 43 of the Annual Report 2016/17 of Carl Zeiss Meditec AG
Equity Increase Has further Strengthened Net Cash and Provides us with Financial Flexibility to Grow
■
Our balance sheet and financial ratios remain very strong
■
Net cash increased year-over-year
We Will Propose a Dividend of EUR 0.55 for 2016/17
0,38 0,42
0,55
Dividend
in € per share
2016/17
2015/16
2014/15
■
Dividend of € 0.55 per share will be proposed by the Supervisory Board and the Executive Board of Carl Zeiss Meditec AG for FY 2016/17
■
The proposed dividend corresponds to 35% of EPS
Agenda
1
2 Financial Performance 2016/17 at a Glance
3 Highlights
4 Outlook
CLARUS 500: High Resolution Imaging across the entire Retina
■
Ultra-widefield (UWF) fundus imaging system to conduct comprehensive fundus examinations in high resolution and true colours
■
Ultra-widefield is the fastest developing segment in fundus imaging with a limited number of competitors and significant further growth potential in the ophthalmologist and optometrist markets
CLARUS – 200° CLARUS – 133° VISUCAM – 45°
Agenda
1
2 Financial Performance 2016/17 at a Glance
3 Highlights
4 Outlook
■
To grow revenue at least as fast as our markets grow
■
To further increase the share of recurring revenue
■
To reach an adjusted EBIT margin in a range of 14% - 16%
Outlook - Focus on Further Profitable Growth
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
Goals 2017/18
■
To grow revenue at least as fast as our markets grow
■