|Fall Press Conf. 2006, p. 1|
|Carl Zeiss Group Once Again Posts Profitable Growth||Downloads and Links|
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|STUTTGART/Germany, 14.12.2006. |
The high-tech Carl Zeiss Group has brought fiscal year 2005/06 to a very successful close, reaching new record levels in revenues and EBIT (Earnings Before Interest and Taxes). At its traditional December Press Conference, the company announced its first provisional figures for the fiscal year that ended on September 30. As a globally operating group, Carl Zeiss has prepared its consolidated financial statements for fiscal year 2005/06 in accordance with the International Financial Reporting Standards (IFRS) for the first time. The previous year’s figures have also been prepared in accordance with IFRS.
Double-digit growth in revenues and incoming orders
Sales revenues of the Carl Zeiss Group rose ten percent to EUR 2,433 million (last year EUR 2,217 million), primarily through organic growth. During the first half of 2004/05, business with eyeglass lenses was still included in the consolidated financial statements. Calculated on a comparable basis, a rise of 14 percent in revenue was recorded for FY 2005/06. At 18 percent, incoming orders climbed even more strongly.
EBIT once again strongly improved
EBIT grew by 25 percent to EUR 313 million (last year EUR 250 million), placing the company’s EBIT margin at just under 13 percent. This is a good value based on an international industrial comparison. “Carl Zeiss has become even stronger. We have improved in all areas and are strengthening our competitive position. In general, our growth rates are higher than the market development,” summarized Dr. Dieter Kurz, President and CEO of Carl Zeiss AG.
Carl Zeiss currently generates 84 percent of its revenues outside Germany. The American and European regions showed a particularly positive trend in the past fiscal year. Our Semiconductor Technology Group, in particular, benefited from the very dynamic growth in the Asian region.
Higher cash flow
Pre-tax cash flow reached EUR 410 million – the equivalent of 17 percent of revenues.
Funds totaled EUR 637 million (net liquid assets EUR 275 million) on the balance sheet date and gives the company room for more growth.
Pension commitments restructured
The good earnings situation and the high liquid assets enabled the company to place EUR 242 million in a Contractual Trust Arrangement (CTA). For the first time, it was possible to specifically invest funds for pension claims, and thus separately from operational business. Pension benefits remain unchanged. The CTA invests the assets for the long-term and uses them exclusively to meet future pension commitments towards the active employees of the Carl Zeiss Group in Germany. “This permits us to clearly separate the operational business from the pension obligations and thus increases the transparency and international comparability of our financial reporting,” explained CFO
Equity ratio increased
The equity ratio increased by five percentage points to an estimated 22 percent based on the IFRS accounting method. This is primarily due to the good operating result, as well as the modified balance sheet structure due to the CTA.
Corporate value clearly increased
The corporate value reported by Carl Zeiss has also clearly exceeded the equivalent figure of the year before. Measured with EVAŽ (Economic Value Added), the value rose to EUR 82 million.
Investments made by the Carl Zeiss Group once again rose during FY 2005/06. The Carl Zeiss Group invested a total of EUR 118 million in plant, property and equipment (last year EUR 108 million). This compared to depreciations totaling EUR 99 million (last year EUR 100 million).
On the balance sheet date, the Carl Zeiss Group had 11,249 employees (200 more than last year’s figure of 11,049) across the globe, of whom 3,406 (3,363) worked outside Germany. Furthermore, the Carl Zeiss Group had 453 trainees on the balance sheet date. Carl Zeiss added personnel in Germany, in particular, and created jobs for highly skilled workers.
Carl Zeiss further optimized its portfolio and adjusted to the changed market and competitive situation during FY 2005/06: on May 1, 2006, the Display Technologies Division (Opto Electronic Systems Group) merged with electronic specialist Jabil Circuit Inc. from St. Petersburg, Florida to form a new company. With Jabil Circuit Inc.,
The Semiconductor Technology Group acquired the Peabody, Massachusetts-based start-up company ALIS Corporation in July 2006. This company specializes in future-oriented helium-ion microscopy and thus excellently supplements the group's technology roadmap.
On December 1, 2006, Carl Zeiss sold
Research and development strengthened
Spending on research and development rose to EUR 254 million (last year EUR 230 million) – or, once again, 10 percent of revenues. Carl Zeiss generates almost half its revenues with products that are less than three years old. “We are continuing to invest in expanding our innovative power in order to offer our customers products and solutions at the highest level," explained
Employees benefit from success
The Carl Zeiss Group involves employees in the success of the company: during FY 2005/06, employees received an annual bonus of up to EUR 1,750 gross, which is comprised of a profit- related bonus and a participation certificate. In all, Carl Zeiss distributed approximately EUR 18 million in profit sharing to employees.
The participation certificate with a value of
Carl Zeiss posted a return on sales of ten percent (German Commercial Code) during fiscal year 2004/05. The participation certificate issued by the company last year therefore bore interest at the highest rate of 20 percent.
Marc Cyrus Vogel
Vice President Corporate Communications
Carl Zeiss AG
Phone: +49 7364 20-3242
Fax: +49 7364 20-3122
Number: 101/06 CC