ZEISS achieves record revenue and earnings
The ZEISS Group increased its revenue and earnings to record levels in the completed fiscal year 2015/16 (reporting date: September 30, 2016): revenue reached 4.881 billion euros (prior year: 4.511 billion euros). This corresponds to a strong increase of eight percent. At 615 million euros, EBIT rises significantly above the previous year's figure (369 million). The EBIT margin is 13 percent. Order intake exceeds the five billion euro threshold for the first time.
Fiscal year 2015/16 was the most successful to date for the ZEISS Group: "Our programs to increase competitiveness are now having an impressive effect. Our entire portfolio is contributing to the positive result. All our businesses were able to grow at a high level," says Prof. Dr. Michael Kaschke, CEO of Carl Zeiss AG. "We are growing - even with a partially restrained development in the semiconductor market and declining momentum in the emerging markets."
Research & Quality
Within the Research & Quality Technology division, the Industrial Metrology business unit is benefiting in particular from the strong automotive market and its Industry 4.0 solutions. The Microscopy business unit is achieving the turnaround and is returning to growth. The Medical Technology division is asserting itself in the highly competitive healthcare market and further expanding its leading position. Thanks to successful product launches, the Vision Care/Consumer Products division is also able to grow strongly.
Although there were no signs of a sustained upswing in the semiconductor market in fiscal year 2015/16, the Semiconductor Manufacturing Technology (SMT) division is able to grow again with solid business in Deep Ultra Violet (DUV) lithography systems. There was also positive impetus for the future technology Extreme Ultra Violet (EUV) lithography. A significant step for the further development of this technology was taken with the expansion of the partnership with the Dutch company ASML.
The world's leading equipment supplier for the entire chip industry will acquire a 24.9% minority stake in the subsidiary Carl Zeiss SMT for a purchase price of one billion euros. In addition, ASML will invest around EUR 760 million for research and development as well as for plant and other equipment directly at Carl Zeiss SMT.
Current key figures
ZEISS generates almost 90 percent of its revenue outside Germany. ZEISS was particularly successful in the Asia/Pacific (APAC) region in fiscal year 2015/16 with revenue of €1.123 billion. This corresponds to a currency-adjusted increase of 17 percent compared to the prior year (953 million). In China alone, revenue amounted to EUR 504 million (prior year: EUR 390 million). Worldwide, ZEISS is growing by 16 percent on a currency-adjusted basis to EUR 995 million (prior year: EUR 883 million) with direct business in emerging markets.
In fiscal 2015/16, total expenses for research and development activities remained at the high level of the previous year. After grants and third-party participation in the activities, a net expense of €436 million remains in the income statement (previous year: €466 million).
In fiscal year 2015/16, ZEISS invested 154 million euros in property, plant and equipment (prior year: 160 million). This compares with depreciation and amortization of 155 million euros (prior year: 150 million). Net liquidity amounted to 568 million euros as of the balance sheet date (September 30, 2015: 374 million).
"Overall, our financial position therefore remains extremely solid and our financing scope for the Group correspondingly large. We are therefore intensively looking at how we can strategically complement our portfolio with further investments and acquisitions," announced Thomas Spitzenpfeil, CFO of Carl Zeiss AG. Free cash flow increased significantly to EUR 709 million (previous year: EUR 477 million). The Group's equity stands at EUR 1,416 million, which corresponds to an unchanged equity ratio of 25 percent.
Innovation boost in growth markets
"In close partnership with our customers, we are developing into a sought-after solution provider for the major issues of the future. In many business areas, our competent and highly motivated employees are actively shaping global megatrends in the areas of digitalization and Industry 4.0 or health," says the ZEISS Group, explaining its growth expectations.
