The Success Story Continues – Sales And Earnings In Financial Year 2005/2006

Revenue increase by 20.7% year-on-year to EUR 390.6 million – EBIT at EUR 48.1 million (+ 34.6% compared to previous year) – Earnings jump by 63.5% to EUR 26.7 million – Dividend of EUR 0.14 per share planned – Carl Zeiss Surgical transaction successfully concluded

JENA/Germany, 13.12.2006.
Carl Zeiss Meditec AG (ISIN DE0005313704) generated consolidated revenue of EUR 390.6 million in financial year 2005/2006 (ending 30 September 2006). This corresponds to an increase of 20.7% over the previous year (EUR 323.7 million). In organic terms – in other words, adjusted for acquisitions and currency effects – consolidated revenue improved by 13.7%. Earnings before interest and tax (EBIT) increased by 34.6%, from EUR 35.7 million in financial year 2004/2005 to EUR 48.1 million in financial year 2005/2006. The company’s profits thus again grew at a faster rate than sales. Compared to the previous year (EUR 16.3 million), consolidated net income increased by 63.5% to EUR 26.7 million. Earnings per share climbed by 51.9% to EUR 0.82 (previous year: EUR 0.54). This was disclosed in the annual financial statements as of 30 September 2006, published today by the medical technology company, which is listed on the Prime Standard of the German stock exchange.

“The year just ended was the most successful financial year in Carl Zeiss Meditec’s corporate history. Based on this again very positive development we will propose to the Annual General Meeting the payment of a dividend of EUR 0.14 per share. This dividend payment shall also apply to the new shares issued in November 2006,” said Ulrich Krauss, President and CEO.

Carl Zeiss Meditec generated more than two thirds (68.1%) of its consolidated revenue with diagnostic equipment for ophthalmic diseases. In financial year 2005/2006, consolidated revenue in this area increased by 18.8% year-on-year to EUR 266.0 million (previous year: EUR 223.8 million). Significant drivers of this positive sales trend were the IOLMaster®, STRATUSOCT™ and VISUCAM PRO NM™, the fundus camera launched at the beginning of the financial year. The Laser and IOL business segment accounted for 25.1% of consolidated revenue (previous year: 24.0%). Revenue here increased by 26.0% to EUR 97.9 million (previous year: EUR 77.7 million). This was mainly attributable to the good volume sales of laser systems, such as the MEL 80™ and the VISULAS™ 532s for treating retinal diseases. The business with intraocular lenses and consumables for ophthalmic surgery acquired last year also contributed to this growth. Sales in the Service business segment increased by 20.6% year-on-year from EUR 22.2 million to EUR 26.7 million. This corresponds to a 6.8% share in the Group’s total revenue (previous year: 6.9%).

The Americas, focussing on the United States, generated almost half of the revenue (43.7%) and thus continued to be Carl Zeiss Meditec’s top sales region. Revenue there rose 25.4% to EUR 170.5 million (previous year: EUR 136.0 million). In the Asia/Pacific region, particularly the encouraging development of sales of diagnostic and refractive laser systems contributed to a revenue increase of 15.6% to EUR 100.2 million (previous year: EUR 86.7 million). Overall, Carl Zeiss Meditec generated 25.6% of its consolidated revenue in this region (previous year: 26.8%). Consolidated revenue in the EMEA region (Europe, Middle East and Africa) increased by almost a quarter (23.6%) in financial year 2005/2006 to EUR 100.2 million. The main sales drivers here were the STRATUSOCT™ and IOLMaster®. Additionally, the takeover of the direct sales organisation in France as of 1 May 2006 and the merely proportionate consideration of IOLTECH, which was acquired the previous year, also contributed to the significant sales increase. The EMEA region’s share in consolidated revenue remained almost unchanged at 25.7% (previous year: 25.1%). The continued discussion on the health care reform in Germany led to a persistent reluctance to invest. This was the main reason, consolidated revenue in Germany declined slightly year-on-year to EUR 19.6 million (previous year: EUR 19.9 million). Germany’s share in consolidated revenue was 5.0% in financial year 2005/2006 (previous year: 6.1%).

As a result of the encouraging development of business, cash flow from operating activities increased from EUR 38.4 million to EUR 42.9 million. Carl Zeiss Meditec’s equity ratio improved again from 59.9% to 60.2%.

At the end of financial year 2005/2006 on 30 September 2006 the Jena-based medical technology provider had a total of 1,292 employees (previous year: 1,207) and 14 trainees (previous year: 15) worldwide.

“We continued to consistently and successfully implement our strategy during the past financial year. Completing the acquisition of Carl Zeiss Surgical in the first few months of the new financial year was also an important milestone for the Company’s further development,” said Ulrich Krauss.

After successfully defending itself against the claims of individual shareholders, Carl Zeiss Meditec acquired Carl Zeiss Surgical in November 2006. The acquisition took the form of a combined capital increase against contributions in cash and in kind. Due to the capital increase, Carl Zeiss Meditec’s share capital rose by around EUR 48.8 million, from around EUR 32.5 million, composed of as many no-par value shares, to around EUR 81.3 million, composed of around 81.3 million no-par value shares. The appointed date for the first-time consolidation is 1 November 2006.

“We intend to continue our successful growth trend in future. By doing so, we want to secure the profitable growth we have already achieved to date, to further expand our market position with regard to competitors and to further enhance our attractiveness as a partner for our customers – hospitals and doctors all over the world,” says Ulrich Krauss.

Carl Zeiss Meditec prepared its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRSs) for the first time in financial year 2005/2006.

Number: M22/06 OP

Contact Information

Jens Brajer

Director Investor Relations

Carl Zeiss Meditec AG

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