Conference Call 3 Months 2017/18

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Carl Zeiss Meditec Group

Conference Call 3 Months 2017/18

Dr Ludwin Monz, CEO Dr Christian Müller, CFO

February 12, 2018

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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.

All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness and nothing herein shall be construed to be a representation of such guarantee.

The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known and unknown risks and uncertainties.

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.

This presentation is for information purposes only and may not be further distributed or passed on to any party which is not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the addressees hereof other than for the purpose for which it has been provided to the addressee.

This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S.

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Agenda

1 2 Financial Performance 3M 2017/18 at a Glance

3 Highlights

4 Outlook

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0.38

0.32

280.0

294.7

Revenue

in € million +5.3%

3M 2017/18

3M 2016/17

■ Revenues grew by 5.3%

supported by all SBUs

■ Fx-adj. revenue growth by 9.5%

■ Strongest fx-adj. growth contribution from SBU Microsurgery and region Americas

Solid Revenue Growth Despite FX Headwinds

EBIT

in € million

EPS

in € -15.8%

■ EBIT down 12.0% vs. prev. year to € 38.9 mn – past year contains special one-off gain of € 7.5 mn from Ontario asset sales

■ EBIT margin of 13.2% (prev. year:

15.8%); Adj. EBIT margin at 13.5% (prev. year: 13.4%)

■ EPS primarily declined due to the special one-off gain in last year from Ontario asset sales and higher # of shares outstanding

44.2

38.9

3M 2017/18

3M 2016/17

3M 2017/18

3M 2016/17

-12.0%

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Agenda

1 2 Financial Performance 3M 2017/18 at a Glance

3 Highlights

4 Outlook

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Ophthalmic Devices: Positive Contribution from all Businesses

73.4%

of total revenue 207.6

216.3

+4.2%

3M 2017/18

3M 2016/17

Ophthalmic Devices Revenue

in € million

Revenue split

in %

■ FX-adj. sales growth of 8.2%

■ Growth acceleration in Ophthalmic Diagnostics, supported by launch of CLARUS 500

■ Growth in Refractive Laser business continued, particularly in APAC region.

■ Strong performance of IOL business

■ EBIT margin impacted by high level of investment in Sales & Marketing and R&D

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Microsurgery: Solid Start to the Year Helped By New Product Launches

26.6%

of total revenue 72.4

78.4

+8.2%

3M 2017/18

3M 2016/17

Microsurgery Revenue

in € million

Revenue split

in %

■ FX-adj. sales growth of 13.4%

■ Growth in Neuro/ENT and Office/Dental category

■ Strong development of placements of KINEVO 900 and EXTARO 300

■ Profitability remains on a high level despite some headwind from FX

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31.9%

Highest FX-adjusted Growth in Americas

30.9%

37.2%

90.5

94.1 +3.9%

3M 2017/18

3M 2016/17

83.7

91.2 +8.9%

3M 2017/18

3M 2016/17

105.8

109.5 +3.5%

3M 2017/18

3M 2016/17

Americas

EMEA

APAC

Revenue

in € million

Revenue

in € million

Revenue

in € million

■ FX-adj. growth of +11.8%

■ Positive development despite continuous intense competitive

environment, especially in Ophthalmic Diagnostics

■ Robust performance of core markets such as Germany and France

■ Strong growth contributions from China, South Korea and Australia

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Margins and Opex Broadly Stable Compared to Past Year

Income statement

in € million in % of sales

Gross profit 162.9 55.3

155.1 55.4

Selling & marketing expenses

71.4 24.2

68.2 24.4

General & admin.

expenses

12.5 4.2

13.3 4.7

R&D expenses 40.2 13.6

37.1 13.2

EBIT [adj.]

38.9

[44.2]¹⁾

13.2

[15.8]¹⁾

39.8

[37.4]

13.5

[13.4]

3M 2017/18 3M 2016/17

1) Includes special effect from divestment of non-core assets at Ontario, CA, site amounting to 7.5 mn

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Adjusted EBIT Margin Slightly Above Past Year

■ Acquisition-related special items in 3M 2016/17 contained one-off gains from the sale of non-core assets at Ontario, CA, site to an effect of € 7.5 mn, as disclosed in 2016/17.

3 Months 2017/18

3 Months 2016/17

Change to prev. year

in € million in € million in %

EBIT 38.9 44.2 - 12.0

Acquisition-related special effects -0.9 6.8¹⁾ -

Adjusted EBIT 39.8 37.4 + 6.3

Adjusted EBIT in % of revenue 13.5% 13.4% + 0.1%-pts.

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Financial Situation Remains Solid

■

Cash flow from operating activities burdened by high short-term working capital requirements to support launches

■

Unchanged strong net liquidity position

3 Months 2017/18

3 Months 2016/17

in € million in € million

Cash flow from operating activities -1.7 0.4

Cash flow from investing activities -2.3 2.7

Cash flow from financing activities 5.6 0.2

Net cash and cash equivalents (31 Dec) 562.9 326.3

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3M 2017/18 at a Glance

Agenda

1 2 Financial Performance 3 Highlights

4 Outlook

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Advanced cataract surgery preparation and validation checks

Paperless workflow with

automated communication

Integrated operative notes,

image management

Outcome tracking

VERACITY Surgical: Cloud-based Surgical Planning Platform for Cataract Workflow Introduced in the US

■ VERACITY Surgical introduced in Nov 2017 at AAO, New Orleans, targeting US cataract surgeons and ambulatory surgical centers

■ Workflow optimization in cataract surgery – availability of data from different sources in one click

■ Goal is to help surgeons improve efficiency, reliability and precision of treatment

■ Complements ZEISS leading portfolio of digital solutions alongside FORUM

1 Planning

2 Logistics

3 Execution

4 Analysis

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3M 2017/18 at a Glance

Agenda

1 2 Financial Performance 3 Highlights

4 Outlook

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■

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

■

To reach an adjusted EBIT margin in a range of 14%-16%

Mid-term Goals

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