Carl Zeiss ended fiscal year 2010/11 (reporting date: 30 September 2011) with a clear increase in revenue and earnings over the prior year: with a total of EUR 4.237b, revenue topped the four billion euro mark for the very first time (prior year: EUR 2.981b). Earnings (EbIT) totaled EUR 607m (prior year: EUR 423m). The positive development in business, bolstered by a favorable trend in the economy at the beginning of the past fiscal year, was sustained both by strong organic growth in revenue (ten percent* above the prior year) particularly in Asia and America and in the Industrial Metrology, Semiconductor Manufacturing Technology and Medical Technology business groups, and by the full consolidation of the Vision Care business group. “We have achieved record figures for almost all performance indicators,” said Michael Kaschke, President and CEO of Carl Zeiss. “Carl Zeiss has remained on track to continued profitable and sustained growth and has further consolidated its position as a technology leader and global player.”
Strong international growth
Business outside Germany
accounted for 87 percent of total revenue. Particularly strong growth was
observed in Asia: here, after currency adjustments, the company posted an
increase of 12 percent* and generated revenue totaling EUR 626m (prior year:
EUR 542m). In America the Carl Zeiss Group increased its revenue by 11 percent* to a total of EUR 975m
(prior year: EUR 898m). The positive trend in the business with cooperation
partners continued: revenue rose 10 percent* to EUR 1.222b (prior year: EUR
1.110b). In Europe the technology group generated growth of 9 percent* after
currency adjustments. Here, revenue totaled EUR 1.301b - including EUR 485m in
Germany (prior year: EUR 1.190b, including EUR 415m in Germany).
At the end of the fiscal
year, EbIT (Earnings before Interest and Taxes) lay at EUR 607m (prior year:
EUR 423m). Earnings before income taxes totaled EUR 569m (prior year: EUR
324m). Earnings after income taxes amounted to EUR 386m (prior year: EUR 208m).
Employees benefit from company's success
On 30 September 2011, Carl
Zeiss had a global workforce of 24,192 people, including 10,081 at the
company's sites in Germany. In addition, the company trained 430 young people
in Germany (prior year: 445). The considerable increase in headcount over the
prior year was attributable to the full consolidation of eyeglass manufacturer
Carl Zeiss Vision (30 September 2010: 12,971 employees, including 8,292 in
Germany). The integration of global player Carl Zeiss Vision has led to an
increase in the proportion of employees working for the company outside Germany
from around 40 percent to just under 60 percent. Carl Zeiss created about 1,200
new jobs worldwide during the fiscal year.
Carl Zeiss ensured that the
employees benefited from the company's success in fiscal year 2010/11.
Full-time employees in Germany received an annual bonus of EUR 2,000 (gross)
and profit-participating certificates totaling EUR 360. These certificates are
a special form of profit sharing. These non-transferable securities bear
interest during their five-year term and are paid out afterwards. Local
profit-sharing models exist for employees in Group companies outside Germany.
Financial highlights of fiscal year 2010/11
In fiscal year 2010/11 cash
flow before income taxes totaled EUR 668m, equating to 16 percent of revenue
(prior year: EUR 506m, or 17 percent of revenue).Gross liquidity amounted to
EUR 847m. Net liquidity lay at EUR 397m (prior year: EUR 884m). On 30 September
2011 equity totaled over one billion euros. "Despite the full consolidation of
the Vision Care business group and the resulting increase in total assets, we
achieved a very good equity ratio of 28 percent," Thomas Spitzenpfeil, CFO of
Carl Zeiss AG, emphasized. "This means that the equity ratio lies within the
target range we have set. The company's exceptionally strong net annual income
also contributed to this development."
Investments in property, plant and equipment and R&D
In fiscal year 2010/11 Carl
Zeiss invested EUR 164m in property, plant and equipment (prior year: EUR 53m).
This investment figure compared to depreciations totaling EUR 122m (prior year:
EUR 96m). The funds were primarily focused on the expansion and modernization
of the global sites, the setup of development centers in Asia, the expansion of
sales networks and the creation of new jobs. In the coming years Carl Zeiss
will invest EUR 500m in the expansion of its sites in Germany. "We are
modernizing our infrastructure over the long term," says Kaschke. "The funds
are mainly being channeled into the Semiconductor Manufacturing Technology and
Medical Technology business groups as well as into the research and development
units in order to further increase profitability through new products."
The product innovation rate
continues to lie at a high level: Carl Zeiss generates around half its revenue
with products that are less than three years old. In order to further expand
its technology leadership in its various areas of business, the company invests
in research and development on an ongoing basis. A total of EUR 359m was
invested for this purpose during fiscal year 20010/11 (prior year: EUR 291m).
Growth requires innovation with vision
"Innovation can be described
as the company's DNA. Pushing the boundaries of optics is our passion and our
daily work," Kaschke continued. "This constantly requires a new way of thinking
in technology, processes, business models and customer service."
In the semiconductor area, Carl Zeiss has been working on a future-oriented
technology for more than 15 years: Extreme Ultraviolet light (EUV), i.e. very
shortwave, invisible light, is to be used for the manufacture of microchips in
the future. EUV technology will enable an increase in the integration density
of chip structures by a factor of ten, therefore providing the computer and
communications industries with a key impetus for further innovations. The start
of serial production is planned for the next few years. "Carl Zeiss is the
right company for a technological revolution of this dimension. We are
investing with vision and farsightedness. We have the strength and stamina to
work on important innovations over the long term," said Kaschke.
Trends in the business groups
During fiscal year 2010/11,
the
Semiconductor Manufacturing
Technology business group generated revenue of EUR 1.378b (prior year: EUR
1.187b), an increase of 16 percent over last year's very good figure.
The
Industrial Metrology business group ended the fiscal year with a
growth in revenue of 35 percent to a total of EUR 394m (prior year: EUR 292m).
In fiscal year 2010/11 the
Microscopy business group increased its
revenue by seven percent over the previous year to a total of EUR 423m (prior
year: EUR 397m).
The
Medical Technology business group ended fiscal 2010/11 with revenue
of EUR 854m, corresponding to an increase of 13 percent over the prior year
(prior year: EUR 754m). The values deviate from the published figures of Carl
Zeiss Meditec AG as a result of different consolidation models.
The
Vision Care business group generated revenue of EUR 849m, a slight
reduction over the prior year (prior year: EUR 881m). The Vision Care business
group was fully consolidated in fiscal 2010/11. In the prior year the business
of Carl Zeiss Vision was valued at equity in the financial statements of the
Carl Zeiss Group.
The
Consumer Optics/Optronics business group, which combines the
company's business with binoculars, planetariums, camera and cine lenses as
well as optronic products, reported revenue totaling EUR 316m (prior year: EUR
312m). This corresponds to an increase of two percent over the prior year.
Outlook
Carl Zeiss does not expect
that the growth generated in the fiscal year just ended will continue to the
same extent in the current 2011/12 fiscal year. The company anticipates a
slight reduction in revenue. "The lack of economic momentum and the rampant
uncertainty in the global economy, partly triggered by the problem of national
debt, are currently dampening optimism," Kaschke stated. Nevertheless, Carl
Zeiss looks with confidence to the future. The Carl Zeiss Group is convinced
that the importance of the Asian and Latin American markets will continue to
grow significantly and develop positively over the mid and long terms. With its
broad international footprint, balanced portfolio, innovative strength and
flexibility, Carl Zeiss is well poised to address this trend. "We have created
a very solid foundation to enable us to further pursue our long-term growth
path going forward," Kaschke continued.
* In fiscal year 2010/2011 the Vision Care
business group is being fully consolidated for the first time. The previous
year's revenue and earnings figures were therefore calculated on a
like-for-like basis. Therefore, the changes specified are based on comparable
pro forma figures for the Carl Zeiss Group including Carl Zeiss Vision.