H1 2026 earnings call transcript

Tuesday, May 12 2026 | 09:30 AM CET

CARL ZEISS MEDITEC AG

XTRA:AFX

H1 2026 Earnings Call Transcript

Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Table of Contents

Call Participants 3

Presentation 4

Question & Answer 10

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Call Participants

Executives

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Justus Felix Wehmer

CFO & Member of the Management Board

Sebastian Frericks

Director of Investor Relations

Analysts

Davide Marchesin

Equita SIM S.p.A., Research Division

Falko Friedrichs

Deutsche Bank AG, Research Division

Jonathon Unwin

Barclays Bank PLC, Research Division

Oliver Metzger

ODDO BHF Corporate & Markets, Research Division

Oliver Reinberg

Kepler Cheuvreux, Research Division

Susannah Ludwig

Bernstein Institutional Services LLC, Research Division

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Presentation

Operator

Good morning, ladies and gentlemen, and a warm to the Head of Group Finance and Investor Relations, welcome to today's earnings call of the Carl Zeiss Sebastian Frericks.

Meditec Group following the publication of the 6- month figures of 2025/2026. And with this, I hand over

Sebastian Frericks

Director of Investor Relations

Hello. Good morning, everybody, and thank you for you a new outlook for the current fiscal year '25/'26 joining our 6 months '25/'26 earnings call. As usual, and an update on our midterm targets. With that, I'll our management will guide you through our financials, hand it over to Andreas Pecher, our CEO. And then and then we will talk quite a bit today about our afterwards, Justus, our CFO, will take the financial

ProfitUp program, including the cost restructuring and question. portfolio measures that we are planning as well as give

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Great. Thank you, Sebastian. Well, good morning to Q1. Revenue for the 6 months amounted to EUR 991 analysts and to investors. Well, welcome to the 6 million, representing a decline of 5.7% year-over-year. months '25/'26 of Carl Zeiss Meditec AG. Justus and I On a constant currency basis, revenue declined by will walk you through the quarterly overview and 2.8% year-over-year, driven primarily by movements financial results. After that, we'll dive deeper and share in the U.S. dollar. If we factor in all currency pressures, more details about our ProfitUp program. And at the FX effects amounted to EUR 46 million. So FX adjusted end, we'll present our guidance for fiscal year '25/'26 revenue was down 1%. Beyond U.S. dollars, the and our midterm outlook. And of course, following the currency impacts were mainly related to the Chinese presentation, we'll be happy to take your questions. So yuan. And in this adjustment, we're also eliminating all let me start with an overview of our 6-month currency effects related to the exports into the Zeiss performance. Well, to cut it short, top line and earnings Group's global distribution network. Revenue declined in the second quarter still remained weak. This across both equipment and, particularly, diagnostic weakness was primarily driven by currency headwinds devices and consumables, in particular, IOLs in China. and an unfavorable product mix with weaker sales of intraocular lenses in China. Looking at the revenue mix, equipment accounted for

50%, consumables for 40% and services for 10% of

Order entry in 6 months amounted to EUR 1.038 total 6-month revenue. Profitability significantly billion, representing a 5.2% decline. Adjusted for declined in the 6 months. Adjusted EBITA came to -- currency, it declined by 2.3%. We achieved solid order came in at EUR 60.5 million, with the adjusted EBITA growth in the EMEA region, while demand in the margin at 6.1%, down from 10.7% in the prior year.

Americas and APAC remained weak. Our order backlog Reported EBITA amounted to EUR 39 million with a saw a slight sequential rise with EUR 435 million at the margin of 3.9%, down from 10.8% in the prior year. end of Q2 compared to EUR 405 million at the end of

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

We'll walk you through the detailed adjustments later extraordinary impairment on capitalized R&D related in this presentation. to IVO, Infinite Vision Optics, which pushed up our overall R&D ratio. Now I would like to hand over to

The significant drop in profitability was mainly driven Justus. He will provide you with more background and by negative FX effects and unfavorable product mix and discuss the SBU figures in more depth. negative operating leverage. While core operating expenses remained stable, we recorded an

Justus Felix Wehmer

CFO & Member of the Management Board

Thank you, Andreas, and good morning, and welcome margin was attributed to gross margin decline by 2.5 from my side. So let me briefly walk you through percentage points, pressured by the exchange rate

Ophthalmology performance for the first 6 months. headwinds, bifocal IOL scrapping and an unfavorable

The Ophthalmology SBU delivered weak revenue and a product mix. The OpEx ratio increased sharply by 5.1 notable decline in EBITA margin. Let's start with the percentage points, largely due to a EUR 13 million revenue. Reported revenue came in at EUR 754 million, extraordinary write-off related to our IVO business. We down 6.7% year-on-year. And on a currency-adjusted have deprioritized this project, resulting in the basis, revenue declined by 4.2%. Revenue decline was impairment of capitalized R&D assets. Excluding the visible across both equipment and consumables. The extraordinary IVO write-off, our core operating performance was impacted by several factors. Of expenses remained broadly stable. course, the exchange rates, as already mentioned, the loss of the bifocal IOL sales in China associated with the Finally, looking at the revenue splits, Ophthalmology revocation of the license for one product that we have accounts for 76% of total OPT revenue. Within commented in an earlier call, scrapping of the recalled Ophthalmology, consumables represent 50%, bifocal IOLs, resulting in a one-off EUR 6 million impact equipment accounts for 41% and service contributes on both revenue and cost of goods sold. This scrapping 9%. Turning to Microsurgery. Overall, we saw both was fully completed during Q2. revenue and EBITA margin decline, mainly pressured by currency headwinds. Revenue in the first 6 months

Equipment sales remained sluggish in Q2, in particular, reached EUR 237 million, down 2.1% year-over-year. in the Americas region. Our successor bifocal And on a currency-adjusted basis, however, revenue intraocular lens has now obtained registration grew by 1.8% in the first 6 months. approval. Once the new round of China's VBP tender launches, we expect a clear opportunity to relist this In Q2 alone, currency-adjusted revenue rose by 4.2%, product in the tender catalog and resume. showing clear sequential momentum and an

Of course, future pricing and volume allocation will incremental ramp-up. Q3 started with strong orders depend on the final bidding outcome. At this point, I and top line. We expect the currency impact to would also like to address the time line for the new VBP neutralize and deliveries to continue to improve in the round, which many of you have asked about. According second half. EBITA margin decreased to 11.5%, a 4.8 to our current estimates, it will most likely start in June percentage point decline year-on-year. This was to July of this year. In China, refractive procedure mainly driven by a 5.5 percentage point decline in volumes delivered reasonable growth in Q2 despite a gross margin, reflecting currency effects. OpEx strong prior year comparison base. remained roughly flat. Looking at the revenue split,

Microsurgery accounts for 24% of total revenue.

Let's move to the EBITA margin. EBITA margin of Within Microsurgery, equipment represents the

Ophthalmology dropped to 1.5%, which is a 7.6 largest share at 78%. Service contributes 14%, percentage point decrease year-on-year. Lower EBITA consumables account for 8%.

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026 was significantly impacted. Both EBIT and EBITA

Let me walk you through our regional development. declined significantly.

Overall, EMEA remained solid, while Americas and Asia

Pacific posted softer development. Starting with the Earnings per share decreased to EUR 0.17, driven by

Americas. The region accounts for 25% of group the lower EBIT and negative financial results, primarily revenue. Revenue came in at EUR 247 million, down due to higher interest expenses. On an adjusted basis,

11% year-over-year, while currency-adjusted revenue adjusted earnings per share was EUR 0.48, excluding declined by 3.5%. This reflects a weaker investment noncash valuation effects on contingent purchase price environment driven largely by heightened geopolitical liabilities while currencies and hedging results were volatility and broader market softness across the not adjusted. region, including the U.S.

Let's have a brief look at the bridge from EBIT to EBITA

Moving to EMEA. EMEA represents 35% of group and to adjusted EBITA. Regular amortization of revenue and delivered a solid performance. Revenue purchase price allocations amounted to EUR 14 million reached EUR 346 million. Currency-adjusted revenue in the first 6 months, including effects from DORC and grew by 5.6%. Growth was supported by most core Kogent Surgical. In terms of special items, the current

European markets, while Middle East and Spain period includes legal expenses in connection with the remained sideways. And finally, on Asia Pacific, Asia lawsuit related to former IanTECH in the U.S., the

Pacific represents 40% of revenue with China scrapping of bifocal IOLs, extraordinary impairment of contributing 21%. Revenue amounted to EUR 398 R&D we've already discussed. On the contrary, the million, down 10% year-over-year and an 8.6% decline prior year benefited from a one-off gain from public on currency-adjusted basis. India delivered solid grants received in China for our IOL production. growth, while important markets, however, including Adjusted for these special items, EBITA amounted to

China, South Korea, and Japan, and Southeast Asia EUR 60.5 million with a margin of 6.1%, a notable showed some weakness, which weighed on the overall decline compared to previous year. regional results.

A quick overview on the cash flow statement. We

Turning to the P&L. Margins came under pressure in delivered strong operating cash generation. This the first 6 months, while core operating expenses improvement was mainly driven by a significant remained stable. Gross profit declined to EUR 491 reduction in receivables as well as lower income tax million, with the gross margin decreasing to 49.5% payments aligned with our operating performance for from 52.7% last year. This decrease was mainly driven the period. Higher investing cash outflow was mainly by the currency headwinds and unfavorable product driven by an increase in receivables against the Zeiss mix, including loss of the bifocal IOL sales and Group treasury, while CapEx ratio was at 2.7% lower scrapping of this product in China. Looking at than the prior year level. Financing cash flow declined, operating expenses. Total OpEx increased by around mainly impacted by the redemption of liabilities in

EUR 13 million, mainly attributed to the extraordinary Zeiss Group treasury. By end of Q2, net financial debt impairment of IVO and legal expenses included in G&A. decreased to EUR 274 million at a lower level

Excluding these, underlying OpEx numbers remain compared to a year ago. With that, I'll hand the floor broadly flat. OpEx ratio increased to 47.2%, reflecting back to you, Andreas. negative operating leverage. As a result, profitability

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Thank you, Justus. Well, let's move to the ProfitUp will reap additional benefits from our innovation measures before I then hand back to Justus for the pipeline. outlook. Well, before I now talk about specific measures that we're launching to stabilize and turn With our ProfitUp initiative, we've launched a around Carl Zeiss Meditec financially, let me reiterate comprehensive bundle of measures to counter the why we need to act. You've seen the slide in our recent margin erosion induced by market weakness publication in December already. I talked through it. and cost layers that, in many cases, were not well-

Over the recent few years, our market environment has balanced anymore to the weaker market environment. changed a lot, and this requires us to rethink how we We want to restore an adequate earnings power and operate as an organization. thereby give us, again, the financial flexibility to invest in future growth. And to achieve that, we need to

The curve outlines the path we're taking from scaling realign our global structures and our organizational through transition and ultimately back to profitable setup to achieve all 3: efficiency, profitability and growth. Up to 2023, our focus has been on scaling for customer value. We need to take clear prioritization growth. Following very rapid growth in our decisions. This will lead to some products that are not consumables business in the 2010s -- 20-teens and mission-critical to our workflow strategy to be coming out of COVID, we needed to adapt our divested or phased out. Other products will be added structures to counter increasing complexity. During from our innovation pipeline as well as from this period, we implemented new organizational partnerships to regain market share. structures to support expansion beyond our established anchor products. We made significant As I talked about during our December earnings call, investments, for instance, expanding our our innovation arm is strong. However, our manufacturing capacity, enhancing R&D to diversify commercial arm remains underdeveloped in many our portfolio and strengthening our digital capabilities markets. We'll strengthen investment into market to enable workflow solutions. We also invested heavily developments and enhance our commercial offerings. in our workforce and talent base. We want to achieve a clearly visible acceleration of top line growth. We will localize products to China, as we

However, we have been open about the fact that not all have been talking about, as well as to other Asian of these investments have translated into the returns markets. We will also optimize our supply chains and we wanted to see. Nevertheless, this foundational work look for savings in procurement as we qualify was essential to prepare us for broader opportunities additional suppliers. The transfers do not stop with and to ensure we have the capabilities needed for the manufacturing. Selected R&D activities are under next stage. Since 2023, we began to see a rapid and assessment to be relocated to best cost locations to initially unexpected market weakness. This year and ensure our cost structures remain competitive. the next few years, we're in a necessary transition phase. This is where we must adapt to rapidly evolving Last but not least, we also have to keep an eye on G&A market dynamics and increasing regulatory cost. We have to deal with additional inflation in our complexity. Our priority here is to revise our existing infrastructure expenses and need to offset this via structures, portfolios and footprint. These adjustments efficiency measures in G&A. So summing up, we want allow us to respond effectively to developments that to achieve both growth above the market with are challenging our profitability. And after that, we continuous innovation as well as show financial expect to see the benefits of our efforts. And this is the strength comparable to the sector. All business phase where we expect to return to healthier growth segments, functions and sites are in scope for this rates and renew our profitability ambitions and also exercise.

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

So what does this mean in financial terms? We're will also be a buildup of new positions, mainly in lower- looking at a list of measures that taken together will cost countries. So the net reduction in jobs will be less. bring about more than EUR 200 million in profit And as I said initially, we are not focusing solely on cost improvements year -- every year, year-by-year, by the and portfolio measures. To improve our market financial year 2028, 2029, 3 years from now. The offering and gain share, we have launched targeted measures stretch across all areas. To name some key initiatives to grow the top line. Partly, this will come

[indiscernible] measures, the commercial organization out of our innovation pipeline and will also be will work on cost reductions, particularly in supported by increased investments in market headquarter organization and back-office functions as development alongside the newly established well as higher productivity and working with the global commercial organization's prioritization of key sales entities. Operations will work on optimizing strategic growth projects. supply chains, renegotiating key procurement contracts and qualifying additional suppliers. Our goal is to deliver a clear and visible acceleration in top line growth. In operations, we have already

We're targeting significant savings from this area. R&D launched a program to localize manufacturing with costs will be reduced sustainably by portfolio China as a main focus as we have discussed before, but measures affecting some structurally lower-margin we're also going to build capacities in the best cost products, which are not mission-critical for our country outside of China over the next years. And these workforce strategy. We will also work on making the efforts will lead to faster growth at more competitive footprint more efficient by moving resources into best cost of goods sold, leading to better gross profit cost countries. And we will also refocus our digital margins over time. The growth contribution and health portfolio. additional savings from the long-term footprint project come on top of the previously mentioned greater than

In G&A, we will run efficiency programs across our EUR 200 million in savings until '28, '29, but some of it group functions and business support functions with will take longer to materialize in our P&L. And with all contributing their fair share. And all in all, based on that, I hand back to Justus for more details and our current assessments, up to 1,000 current positions financial outlook. across the global organization may be affected. There

Justus Felix Wehmer

CFO & Member of the Management Board

Yes. Thank you, Andreas. So where does this leave our passed on and the phasing over the next years will be financial outlook? As we have discussed in our press step-wise to mitigate the impact until the efficiency release today, we also have to deal with higher measures are contributing. infrastructure costs. These include the already present expenses for the new SAP implementation as well as a All in all, we expect to have to reinvest around EUR 40 new Zeiss Group-wide customer relations million out of the EUR 200 million into additional management system. In addition, on Friday last week, infrastructure expenses by '28, '29, leaving a net our Supervisory Board agreed to the rent contract for improvement of EUR 160 million. On top of that, we the new headquarter in Jena as well as to a gradual will see acceleration of top line leading to further price increase in shared services procures from the positive operating leverage as well as the longer-term

Zeiss Group over the next 3 years. The cost of these benefits of the footprint project. Lastly, as you will business services has been rising for several years with certainly expect, given a program of these sizes significant payroll inflation. There is no profit margin affecting payroll expenses, there will be substantial for any of these activities at the Zeiss Group level. one-offs [ nonrecurring ] investment. Cumulatively,

Exclusively, actually incurred expenses are being these could reach up to EUR 150 million over the 3

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026 years period. Please understand there's still a lot of Let me also mention another risk that is not yet uncertainty in these estimates, and we will report on included in this outlook. Due to the erosion of our profit them in detail as we move forward. We will adjust out margin in Ophthalmology and the disappointing the nonrecurring items related to these initiatives from contribution, in particular from the acquisition of our guidance achievement. IanTECH in 2018, the goodwill on our balance sheet being carried by the Ophthalmology division is not as

To wrap up and before turning to the outlook, let me well underlined anymore by the cash flows of the cash- once again reiterate what our target view is for Carl generating unit. We are currently still analyzing the

Zeiss Meditec. We are investing into the future and of impact of our ProfitUp measures as well as the our company. We want to get back to above-market midterm view on recovery of our profit margins as well growth. We want to get back to significant investment as having discussions with our auditors on the viability in innovation. We want to build long-term financially of the current ophthalmology. A write-down on some healthy structures. We want to restore adequate and of these intangible assets that, based on early sector-like profitability, giving us enough financial estimates, may somewhat exceed EUR 100 million in freedom to seize strategic opportunities. And we want the second half year can, as of today, be expected. We to be a fast-acting customer-centric company and a will let you know as soon as we have clarity because high-performance environment with our employees. discussions with our auditors are still ongoing. We would treat it as a nonrecurring item regarding our

Turning now to the outlook. The current year '25/'26 guidance as it is a noncash accounting charge mainly has started on a weak note as we have discussed at related to acquisitions of the past not working as length with significant headwinds, in particular from planned and profit margin having declined. the Chinese IOL business, but also from the negative exchange rates. We expect the impact of these factors Economically, the risk to goodwill is most closely to be much reduced in the second half. Typically, our linked to the acquisition of IanTECH in 2018 and equipment business is back-end loaded and the main underperformance versus our expectations. seasonality in our consumables business coming from Importantly, potential impairment would not change the Chinese refractive laser summer peak are still anything we do in the Ophthalmology business and has ahead. This is why we think the current year will be a no other impact on our ProfitUp decisions. Turning to tale of two half-years. The first half year saw a the midterm outlook. Organic revenue growth should significant drop in top line and adjusted EBITA. The rise again and reach at least a mid-single-digit second half, we'll see more stable results, not far from percentage over the medium term. Supported by our last year or, in the best case, even slightly higher. Under ProfitUp measures, we are targeting an adjusted EBITA these assumptions, we will likely get to EUR 2.15 billion margin greater than 15% by the fiscal year '28/'29. We to EUR 2.2 billion in revenue. continue to see the previous target levels of 16% to

20% EBITA margin as viable for our business and our

Adjusted EBITA margin will turn higher and reach sector and generally achievable in the long term. With between 8% to 10%. Special effects such as the ones we this, I'd like to conclude our presentation for today, and have shown you in the first half and possibly the first now we look forward to your questions. effects from the ProfitUp measures will continue to happen, and we will report on them when we incur them. We currently expect a mid-double-digit million euro amount. There are additional IP topics amounting to at least between EUR 10 million to EUR 20 million in potential impairment on capitalized R&D that might take place in the second half year based on today's assessment of our pipeline and planned measures.

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Question & Answer

Operator

Thank you very much for the presentation, and we now And we already have the first participants. Mr. move on to the Q&A session. [Operator Instructions] Reinberg.

Operator

Please, Mr. Reinberg, feel free and be welcome to place your question.

Oliver Reinberg

Kepler Cheuvreux, Research Division

Brilliant. We made it. Three questions from my side. First one would be on phasing. Can you just provide some kind of color if you expect a kind of linear approach towards the 15% margin target, in particular, as I note that you call 2027 still a kind of transition year. Any kind of color here would be great. Secondly, on the midterm outlook, can you provide any kind of color what is assumed in this for Chinese refractive franchise and competition and whether you incorporated any kind of revenues from the U.S. cataract franchise and

ICLs in China? And then lastly, just on refractive. I think you talked about reasonable growth. Can you provide a bit of more color and what your assumption is here for the full year?

Justus Felix Wehmer

CFO & Member of the Management Board

Oliver, it's Justus. And once again, sorry for the delay, be rather soft in your assumptions on impacts out of but I'm happy that now the line seems to work the program in the next fiscal year. And then, I think, perfectly. On the phasing, I mean, you -- I think almost you will see a more accentuated acceleration in the had the underlying assumption that it is not linear, of second half of the 3-year time horizon that we have course, as you can imagine. Yes, we are in a given to you. And I think we keep you posted on it as transformation program that starts now. I would we continue. clearly see that we have a back-end loaded curve for that program, especially once we consider the On the midterm outlook, I think we have clearly baked composition of general cost, but also personnel cost. So in some caution on the refractive margin development therefore, I don't want to go into too much details, but into that perspective. We obviously anticipate local

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026 competition in the Chinese market entering stronger than we had expected. For the remainder of meaningfully or more meaningfully in the next 12 to 24 the year, without having any indication on consumer months. And that is clearly included. I think on cataract confidence being significantly changing, we remain business, we are assuming that we can at least grow somewhat cautious, but I think I would also share with with market growth. And I'd say -- I think you were you at this point that we are actually quite happy with pointing to potential enhancements in the offering the SMILE pro share increasing in the total number of towards ICL, but that I think is not of any meaningful SMILE treatments. And we also see that the overall impact on the guidance that we just shared. number of SMILE treatments, so both SMILE and SMILE pro as a percentage of the total treatments is actually

On refractive, what did I mean with reasonable solid at 70% and slightly above, which means the down growth? What I meant to say is that we're seeing trading towards LASIK we do not see continuing. So I growth over last year, which I think is generally a hope that answers your questions. Thank you, Oliver. positive signal because the first 6 months of last year, as you remember, were actually also somewhat

Operator

Okay. So we move to the next participant, Mr. Felton. So then, we get back to Mr. Unwin.

Jonathon Unwin

Barclays Bank PLC, Research Division

I was wondering if you could provide a little more color on the portfolio optimization opportunities which you see, which specific business lines you expect to discontinue or to sell. And are you able to quantify the revenue and EBITA contribution from these businesses today just so we can get a sense of any potential drag on the top line and earnings growth as you go through that process? And then on the mid-single-digit constant currency growth by FY '29, how should we think about the building blocks to get to that? Do you need to see some sort of market improvement to get there? Or by removing the lagging businesses and improving the sales force, does that get you to the target? Those are my questions.

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

First one, I missed. The other one, I can talk a little bit.

The second one, I didn't understand.

Justus Felix Wehmer

CFO & Member of the Management Board

We didn't fully -- and that was not because of the didn't fully get the second question. Can you repeat it, technical problems we had at the beginning, but we please, once again?

Jonathon Unwin

Barclays Bank PLC, Research Division

Just on the midterm growth target of mid-single-digit constant currency, do you need to see a market improvement in the businesses to get to this level? Or can you get there by removing lagging businesses and improving the sales force?

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Maybe I'll start and then, Justus, you chime in. Well, final decisions on that. On the second question, no, we first on, you wanted more color on the phasing out of are expecting a reasonable revenue growth in that. So certain products. Well, I mean, there, we're evaluating our current ambition and our current plans are to currently alternatives to maximize the value. Of course, achieve what we talked about with, I would say, we have ideas. In parts, we're going to divest certain reasonable growth in our top line. areas and do some sunsetting, phasing out. But please stay with us. We'll update you once we have taken the

Justus Felix Wehmer

CFO & Member of the Management Board

Yes, which is basically at least market growth as we anything between 3%, 4%, maybe a little bit higher is would expect it. And as you know, that is -- has been reasonable from our perspective. somewhat fluctuating with the currencies depending on whether you apply U.S. dollar or euro. But I think

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Good. Did that answer your question?

Jonathon Unwin

Barclays Bank PLC, Research Division

Yes, I would have liked a little bit more color on the divestments, but I'll just have to wait.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Okay. Thank you. Sorry about that, but we'll keep you updated once we're there.

Davide Marchesin

Equita SIM S.p.A., Research Division

So first question regarding China refractive business.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

We don't hear you.

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Sebastian Frericks

Director of Investor Relations

Apologies one second, please. Can -- for those who Equita, please. Why don't you send the questions per e- might not be able to ask the questions, we really mail to me, [email protected], and I will sincerely apologize for these technical hiccups, and this read them out in the room and we answer them this has not happened before, and we will fix it later. But I way. I apologize for the somewhat complicated would ask you to please e-mail the questions to us, and proceeding, but to not lose any more time and to not we will read it in the room. We can try for you to read make it too tedious, let's do it like this in case the audio the questions out loud. If you can't, and this is also for doesn't work. Thank you for your understanding.

Richard from Goldman Sachs, please, and Davide from

Operator

And to other participants, we try to get to the next one.

Mr. Oliver Metzger.

Oliver Metzger

ODDO BHF Corporate & Markets, Research Division

Great. At least this works. So one bigger comprehensive question, please. So regarding your midterm guidance, can you a little bit more about the moving parts? Because there's -- one hand, there are some underlying market assumptions, there is the ProfitUp program. Also some -- from a regional perspective, some views. Also to what extent, for example, the VISUMAX 800 launch in the U.S. was assumed. So would be really great to get a little bit more background regarding the assumptions. And second question is more a quick one. Can you make a comment about rollout VISUMAX 800? So momentum over the last quarters or in particular last year was better. Where do we stand -- where do you stand right now?

Justus Felix Wehmer

CFO & Member of the Management Board

Yes. Thank you, Oliver. Let me try to give you a bit more an EBIT improvement of roughly EUR 200 million plus. color. As we have said, the entire program that we are And that does not include any impacts out of the bigger embarking upon should by the year '28/'29 contribute footprint measures that we have mentioned because

Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026 there, we clearly would estimate that their growth rates in some pockets of our business. I think contributions will only be of more meaningful Andreas alluded to the fact already in our December character probably in a 4-, 5-year time frame. We do earnings call, but also in this presentation, that we have to discount from these EUR 200 million some of want to strengthen the commercial muscle that we feel the headwinds that we were talking about, which is that we have in our existing portfolio already today. mainly rising infrastructural costs. We have some Still opportunities in some underserved markets and peaking G&A expenses out of the SAP roll-in, the global the new setup with a Chief Commercial Officer is roll-in that is basically happening over the next 2 to 3 something where we clearly would expect that this will years and being concluded. drive some additional growth momentum.

Likewise, a global project to set up a next-generation And out of this, we also would anticipate some bottom customer relationship management system. And we line improvements. So with that, we would think have the move into the new premises in Jena, which cumulatively that we should achieve by the year was decided 10 years ago and the move into this '28/'29, an EBITA margin, an adjusted EBITA margin in building is now coinciding basically with the that range of 15% or better. The guidance for the transformation program. So there's some counter outlook in the long term, where we have reconfirmed effects out of this. And then ultimately, also some the 16% to 20% is basically an expression of the fact headwinds out of the services that are more expensive that we then would expect in cumulation to the just getting out of the Zeiss Group. And that is roughly a described effects, then additional support from the

EUR 40 million effect -- counter effect against the EUR footprint program. And I think that pretty much

200 million, which leaves us with a net contribution out comprises the bridge to the guidance that we just of this program of some assumed EUR 160 million. shared. The second part was on the VISUMAX 800.

We, on top of it, are obviously focusing on top line measures, meaning growth beyond the assumed

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

There -- I mean, without going too much into detail, I I would say, so far, we are quite happy with the rollout would say that goes as planned. The uptick is there. Of of that. course, the 800 has also an advantage of, well, more customer value, so we can achieve higher pricing. And

Sebastian Frericks

Director of Investor Relations

Yes, is there a follow-up, Oliver, please?

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Oliver Metzger

ODDO BHF Corporate & Markets, Research Division

Yes. So yes, please. One follow-up regarding my first question. So if you set up a guidance and normally, the guidance is somewhere, let's say, the midpoint of some assumptions. So would you say that this guidance consists some safety caution? Or is the guidance -- okay, it's taken here the midpoint of our assumptions. It could be [indiscernible] to the top or to the bottom, would be really great to get your, let's say, your own assumptions, how aggressive you model it?

Justus Felix Wehmer

CFO & Member of the Management Board

Well, Oliver, I think as you can imagine, we are talking here about a massive program where we have a list of We were referring to the second NVBP. And I think we measures that is identified. However, the precision in also made it clear in our explanations on the terms of when can we -- what become fully effective presentation that we also expect there further and fold out its total impact versus what other headwind on price and volume that we can expect. So headwinds we may face out of the market is not a therefore, yes, I think there's a reasonable portion of precise science. So I think, as I said as answer in one of caution in this guidance. But I think beyond that, you the previous questions, we clearly have baked in some hopefully understand that it's rather difficult to give caution in terms of headwinds on our underlying you here a total precision on this prediction. business on competitive impacts that may hit us.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Maybe just to add into the program, I mean, I hope that came across. This is quite a serious program. I mean, So I would also say, as things happen, typically not there's a lot of effort into that of the whole everything comes through, that's normal in programs organization, and it covers and encompasses the whole like that. But it's clear here that we want to achieve organization. A lot of work has gone into detailing the those targets. And if we don't -- if we have to add measures already. Of course, there is still some work further measures, we will identify further measures ahead, quite some work ahead. And of course, we still and work on that. So that should be very clear. Our have to then implement many of those measures. But target is very firm. We want to achieve that. And we rest assured there that this is a very strong focus of the believe that we have the means to do that. organization.

Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Sebastian Frericks

Director of Investor Relations

Okay. I will now add some questions that were sent to me by e-mail. I will start with Goldman Sachs and then move on to Equita and then to JPMorgan.

Sebastian Frericks

Director of Investor Relations

And if anybody still has sound issues, please keep sending me them, and we will treat them in the order they arrive here. So first, to Richard from Goldman Sachs. First question, please, can you talk a bit more about your initiatives to reinvigorate top line growth? What will the organization do differently moving forward? What elements of your R&D and innovation pipeline are you most excited about? Is there anything to give more confidence or more conviction to the revenue growth guidance in particular? And then last one, China IOL

VBP, what's your assumption on the impact embedded in your current year guidance?

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Thank you for sending.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Maybe I'll start with the R&D pipeline we have here. making and realizing it. So I would say there's going to

Well, if I look at the -- I mean, you can imagine, right, be a number of instruments, not far away. And if I look we do have quite a strong innovation arm, at least further, essentially, we have a pipeline for the coming that's clear here. So if I look in both businesses, we do years of regularly releasing products that we will have a couple of items there. One instance on OPT, announce. And last but not least, don't forget DORC,

Ophthalmology, is the trifocal toric hydrophobic lens where we acquired quite a nice product pipeline that that's actually being released as we speak. We have an we're now moving into the market. So I would say I'm additional development on the presbyopia treatment fairly excited about that, what we have there. And based essentially on technologies that we have. there's more to come in the next quarters, I would say.

On the MCS side, I would expect instruments. So we're working -- getting into the workflow strategy and

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Justus Felix Wehmer

CFO & Member of the Management Board

I mean, you were -- if I recall that correctly, asking we said before, that the underlying assumption is that about what are further measures on the commercial with the portfolio that we have and with the strategy side. I think we explained it before that we take more and the completion of the portfolio, just again referring direct leadership in the portfolio management in the to, among others, the completion of the hydrophobic countries than we have had in the past. So we are IOL portfolio, we will be able to, certainly, grow at a training more comprehensively the sales forces to market growth level. And I think on the NVBP, I mean, enable them to better pitch the entire workflow it's really early to tell here. offerings. And I think, as we said in earlier calls, we feel that some of what worked perfectly in markets like We have baked in, as I said before, the expectation that

China could also work in other regions in the world. there will be a stronger pressure, especially in the

And I think this is one of the key elements, and that is premium segment on the pricing. But I remind then also added and completed with, for example, new everybody that we didn't discount as aggressively in business model opportunities, bundlings, or other the first tender for the premium lenses. But it's attractive offerings, Equipment as a Service and so on obviously very hard to predict, at this point in time, and so forth. what this could end up with. But as I said before, we have in our model taken some preparation for lower

So I think there are some elements that we can clearly margins in the premium segment in China going play stronger in the future than as we have done it in forward. the [indiscernible]. On the revenue growth targets, I think you were asking, and I just want to reiterate what

Sebastian Frericks

Director of Investor Relations

Okay. I hope these were all answered. And Richard, please send any follow-ups just in case. One second, please. I'll continue with Davide from Equita with your questions that you e-mailed in. So the first one, I think some were already answered, so we can keep it short. The first one was how sales of VISUMAX 800 are progressing in China and how many devices we are expecting all in all in '25/'26 of VISUMAX 800? What's the utilization rate between the 500 and the 800, so between the old SMILE and the SMILE pro? And are some local players already able to sell SMILE technology or will be anytime soon? That's the question on China refractive.

Second question, China IOL, if we have already restarted selling the bifocal IOL. Third question, is there an improvement in the U.S. in equipment demand? And final question, I think we may have answered this one already, regarding the EUR 40 million additional infrastructure expenses in the Zeiss Group context. Does it include the lease agreement on the property as well as the repricing for services?

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Justus Felix Wehmer

CFO & Member of the Management Board

Okay. Sales VISUMAX 800. What we would expect is we would anticipate that this is rather something for actually a fairly normal run rate, which typically means the next fiscal year than for this fiscal year. The bifocal that we have a sales going out of probably somewhere sales with a new product, whether they restarted, no, around 200 units in this year. And of this, most likely they have not yet restarted. And that's also a bit of a anywhere between 2/3 to 3/4 going into China. And I headwind for this fiscal year because as you remember, think after the first 6 months, we can say that we are on our expectation was for this tender to take place track for that, as Andreas said before. The utilization already in March, April. Now it's pushed out to June, rate, I think, was the second question. We clearly see an July. That means until the new tender starts, we will not uptake in the SMILE pro utilization rate over the last see sales of this lens. month. I personally have been visiting clinics where they actually have already passed the point where And then we have the question on the U.S. demand on actually there is more SMILE pro treatments than equipment. Let's be specific here. We clearly see more

SMILE treatments, but that may be still some anecdotal headwind in the diagnostical product portfolio, where data. we also have had to increase prices following the tariff implementation last year. And we all know that this is

But overall, the utilization rate of SMILE pro is trending the most price-sensitive market segment, and we clearly upwards and obviously giving us in terms of clearly could see that there were some projects being pricing and associated transfer price for the -- or sales pushed out. On the other side, if we look at the price for the treatment packs also a little bit of tailwind. microsurgical portfolio in the U.S., I think we overall

On the competition, I think we -- I said it earlier, we see that it is trending per our expectations and would expect in the next 12 to 24 months more visible providing some good opportunities when we look at presence of competition. At this point in time, we are the order book for continued growth throughout the aware of some clinical testing that is being conducted second half of the year. And I think there was -- can you on one device by a Chinese company. help me on the -- there were 2 more things...

But from our expectation, until that is really then being a launched product ready to be served in the market,

Sebastian Frericks

Director of Investor Relations

On the infrastructure, did you comment on this one...

On the infrastructure...

Justus Felix Wehmer

CFO & Member of the Management Board

Yes, I think that is all included there in this EUR 40 million. And as I had tried to explain in the previous answering of the question and then we had...

Sebastian Frericks

Director of Investor Relations

I think we did answer it all. In the case there was anything missing, Davide, please let me know again. I would move on to the JPMorgan questions. So first of all, do you have an update on the new CEO? I'm sorry, these are from David Adlington from JPMorgan. Thank you, David, for submitting them. Do you have an update on the new CEO? Second one, do you expect any revenue impact from letting up to 1,000 employees go? Third one, 21% of sales are in China. How much did they contract in H1? What's your midterm expectation for

China? And final one, H1 margin was only 6%. The guidance of 8% to 10% for the adjusted EBITA margin implies a meaningful recovery in the second half? And what's that based on, what key drivers?

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Yes. I would start with the CEO. Maybe talk a little bit revenue is one side. EBIT is the other one. Of course, about the revenue impact, then you chime in on the that is there to improve the EBIT. There's not much

China. And maybe I can comment a little bit on the more we can say right now because that would go too second half. So on the CEO, well, the search is, I would much into detail of what products we plan to say, going accordingly to the time line that we set discontinue. But overall, also when it comes to the sales before. So I can pretty much stick to what I said before. organization, we will certainly not cut areas where we

We hope to be able to announce my successor by the will then have unnecessary reductions in revenue. end of this fiscal year, the latest. I would say -- nothing Actually, the opposite. We want to strengthen our more I can say here in detail. I hope you [indiscernible]. revenue growth by implementing more stringent sales and commercial organization. That would be my

On the revenue impact of the colleagues, we will have comment on the first 2 questions. Maybe you want to to let go. Of course, we're going to try to minimize that. say something on China and...

If it's related to some product lines that we might discontinue, there could be an impact, but that's

Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Justus Felix Wehmer

CFO & Member of the Management Board

Midterm expectation in China, I'd say, again, let's go by On the recovery in the second half of the year, what are segment. For our refractive business, I'd say that we the drivers for that? I think number one, as everybody volume-wise would clearly see further growth. But as I knows, we definitely see that we have the summer peak said before, we have baked in some caution in our for our refractive business in China ahead of us and guidance in terms of margin [ development ]. There is with a higher portion of SMILE pro capable lasers, we some -- if you want to say so, some counter impact that would -- even if procedure numbers may not grow as we are forecasting there. But overall, we would still strong, but we would think that we should benefit from think that there is growth opportunity for our portfolio. the higher margin of the treatment packs post SMILE

In the intraocular lens sector, that, of course, remains pro. We would also see as a contributor in the second more difficult at this point in time. Again, in terms of half of the year, of course, the MCS order book that we volume, I would be somewhat -- especially in the are now turning into revenues. monofocal area might well be that we can actually gain there in terms of volume, but the price impact, of And last but not least, again, let's remind everybody course, is most likely going to have, again, some that one of the key headwinds was the currency in the offsetting impact here. So more difficult to predict. But first 6 months. And that, from our current predictions, as I also said before, we have made here some caution will not play a role in the second half of the year, and reservation in our model. that will obviously be another contribution to the recovery.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

And we balance that essentially, that's with the risks IOLs we talked about. So essentially, we balance the that we -- that still remain, geopolitical risks, upside to the downside. essentially, consumer climate remains weak, et cetera.

Sebastian Frericks

Director of Investor Relations

I think there was one data point missing. Maybe I didn't I have the written questions e-mailed. So Susannah read the full question. This was basically the H1 trend from Bernstein, we'll start with you, so we can try to in China. This was down single-digits in the Chinese unmute you. And in case it doesn't work, I have your market. I will now call up -- we will do the following. I questions here to read them out. have a question from Bernstein, from Deutsche Bank and from RBC, and we'll try to get your audio in. If not,

Operator

Yes. So we try to get to Susannah Ludwig.

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Susannah Ludwig

Bernstein Institutional Services LLC, Research Division

Great. Can you guys hear me?

Operator

I can hear you pretty well.

Sebastian Frericks

Director of Investor Relations

No, we can't. Okay. Sorry about that. I would...

Operator

Okay. We get questions via e-mail from Sebastian.

Sebastian Frericks

Director of Investor Relations

I will read them. So these are from Susannah and Richard from Bernstein. First question, your restructuring program is targeting savings roughly equivalent to what you expect to deliver in adjusted EBITA at the midpoint of your guidance this year. So basically, the restructuring program is as big as the current EBIT.

What gives you confidence in the delivery? This is obviously a sharp change for the organization. How will it impact morale in the organization? Given the complexity of the program, is it fair to assume that in the new

CEO search, experience with transformation of this nature is a criteria?

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Yes. Maybe the first question about [ confidence ]. Well, the confidence comes from a couple of areas, right? In My impression there is a lot of diligence was put in my previous life, I've done a couple of those programs, there. We also had some external support that made and I'm sure you have seen or done some of those as sure that we got challenged there to do that. The well. First of all, it comes with the confidence in the organization that was involved, my impression is, was measures, right? How well are they analyzed? How quite diligent in doing that. And the most important much do you believe the numbers that you see in those thing is saw the reason for doing that because looking and how much detail is put in there? at the numbers in the last quarters and, actually, even

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026 a few years, people understood why this is there. And together with this extended leadership, we will guide that's a good basis for the second part, the confidence, our group, our team through that. And for that, we also because you're going to have to make sure that the have support implemented support for our leaders in people are coming along. terms of change management and making sure that they can guide, essentially, their employees through

When it comes to the leadership, we had some that. So with that, I would say that's as professional as conversations already. My impression is the leadership I know you can set up a program like that. So my understands it, wants to continue or contribute and confidence level that we will go through that is fairly help on that. The questions that we got typically are high, of course. To be very open there, we have to make how can we help. sure that this time of uncertainty, we will keep short because, of course, we want to focus on what really

So now the next step, and that will happen this -- matters, and that's our customers. The second question actually right after this call, when Justus and I will was about complexity of the program, right? address the whole group and the whole team, is that

Sebastian Frericks

Director of Investor Relations

Yes. Basically, is that -- in looking for the new CEO...

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Yes, of course...

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Sebastian Frericks

Director of Investor Relations

[indiscernible] experience.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Yes. Well, yes, exactly. That's one important aspect of selection process and was tested. And of course, we are the new CEO, clearly, because the program is not over also looking for program that -- for a person that looks yet by announcing it, right? It actually starts. And as beyond that because this program is in part also you can imagine, there will be a lot of work. And here growth. But of course, we have other ambitions for Carl and there, some measures might not happen, and we're Zeiss Meditec. So we're looking for a person that can do going to have to find other measures or regroup and do both of that. And the people I've seen, that we look at, that. they can achieve that. Thank you for the question. Very good question.

So of course, we're looking for a person that is not going to give up on that. That's very clear. That's part of the

Sebastian Frericks

Director of Investor Relations

Okay. Thank you, Andreas. I come to Falko from

Deutsche Bank. Falko, we can try to unmute you on audio. If not, I read the Qs here.

Operator

Yes, I just ask Mr. Friedrichs to unmute. He's dialed in by phone.

Falko Friedrichs

Deutsche Bank AG, Research Division

Can you hear me?

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Operator

Yes. We can hear you.

Falko Friedrichs

Deutsche Bank AG, Research Division

Okay. Excellent. Firstly, to what extent are you impacted by the Middle Eastern conflict? And are you able to mitigate or pass through higher costs? Then secondly, what was the refractive procedure growth in China in the second quarter? And how good is your visibility on this summer peak season at this point? Could it be a better one again? And then lastly, more over the near term with regards to the start of Q3, are you optimistic that the Ophthalmology business can grow positively again on organic sales growth in Q3?

Justus Felix Wehmer

CFO & Member of the Management Board

So I can start with -- Falko, it's Justus. The Middle East terms of procedure growth for the first 6 months, we conflict is, in terms of energy costs and associated do see a up to mid-single-digit growth rates in impacts, is not really of that much relevance because, procedures, which is, as I said before, quite as you know, we are mainly an assembly company and encouraging. But there is this associated uncertainty, energy costs for -- in our total bill of material is not such and that leads to your question about the summer peak a decisive factor. However, it is fair to say that the confidence. I don't -- as I say before, I don't want to be

Middle East region is a very good market for us. And here too optimistic on everything. So because the -- in typically, in the last years has grow with high-single- the bigger picture, not so much things have digits, partially double-digit rates. And there we clearly fundamentally changed in China. right now suffer with a slowdown in order entry and the headwind, as everybody can imagine, from the So therefore, yes, we clearly would expect a reasonable uncertainty in that region when it comes to the war. So summer peak, but I don't want to generate here too therefore, not as much in our total cost of goods sold much expectations for any miraculous, enormous and impact, but more right now on the top line in terms growth potential. And I think the last portion of your of headwinds for our growth in that region. question was organic growth for OPT. But I was not quite sure, Falko, did you refer specifically to Q3 or

The refractive growth, I think you wanted to generally going forward? understand for the second quarter. What I can say in

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Falko Friedrichs

Deutsche Bank AG, Research Division

Yes, I was referring to the third quarter now.

Justus Felix Wehmer

CFO & Member of the Management Board

Organic growth in third quarter, yes, as I said before, yes, I would say that it's probably a fair assumption that with our expectation that currency will not play a we should be returning to organic growth in Q3. And if major role, and therefore, the headwinds on the top not in Q3, then certainly into Q4. line should remove by and large. And our typical seasonal pattern of a stronger second half of the year,

Falko Friedrichs

Deutsche Bank AG, Research Division

Okay. And as a quick follow-up, can you share how much the Middle East is in terms of your sales exposure for the group?

Justus Felix Wehmer

CFO & Member of the Management Board

Let me quickly see. I have some backup notes on this. right now, we are seeing a decline anywhere in the mid-

And -- but I don't have it. Here it is. Here it is. So it's a single-digit numbers versus last year. low-single-digit portion of the group revenue. And so

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026

Sebastian Frericks

Director of Investor Relations

Okay. The next one e-mailed questions are from RBC from Charles Weston. So Charles is asking, please, can you split out what you're seeing in Ophthalmology as like-for-like pricing, mix and volume? The second one is, are you flagging major CapEx investments as part of the infrastructure announcements? The third one is, is the KINEVO 900 S cycle now inflecting? And can you give some visibility specifically on the neuro order trends? The last one is on DORC. How is DORC performing on a stand-alone basis? And are these synergies on track with the initial business case?

Justus Felix Wehmer

CFO & Member of the Management Board

So split of entire OPT in terms of pricing, mix and indeed, there are some. And I think at this point in time, volume, I mean, that's a rather complex question for it's probably fair to assume that it is somewhere a mid-

3/4 of our revenue. And with the factors that we double-digit million euro amount associated with it. mentioned before, and NVBP, where I currently -- as I Mainly, of course, relocations into China, but also said before, we are assuming some pressures there beyond that, as we had said, some investments in a so- with the refractive business where at least going into called best cost country location outside of China. the next years, we would probably see some pressure on margins based on competition arising. So I'm not KINEVO inflection point was the third question. Yes, we sure whether I can give you any sensible answer for the do clearly -- if you mean inflection to the positive, then entirety of that business here. I think overall I try to I'd say, yes, clearly, we see that materializing. And in take the key industry factors. I think we clearly would the neuro area that you were specifically asking for, we see continued demand growth for the business, yes, do see a good -- as I said before, a good project pipeline. simply driven by demography, I think as everybody is The order book has been growing, and we are actually aware. And against that, we clearly see some pricing preparing for a pretty strong second half of the year for pressures. MCS and with KINEVO being a major component of that. DORC overall, I think we are still very happy with

And in terms of mix and our portfolio, as you know, the integration is continuing. We do see synergy effects. where we are increasingly having the consumables in We do, however, also, that is fair to say, still see that the the portfolio, and then now also in our instrument ramp-up of operations to basically catch up with the business, I would say that by and large, we would still enhanced demand, respectively, the requirements to, end up, even with pricing pressure, on a different mix basically, develop the new territories that are now with the top line growth. I think I can only leave it on covered by the Zeiss organization, that is still providing that level here. Otherwise, we really have to go partially challenges. But I think overall, we are business sector by business segment. CapEx confident that we also in the second half of the year will investments associated with the ProfitUp program, yes,

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Carl Zeiss Meditec AG (XTRA:AFX) | H1 2026 Earnings Call May 12, 2026 have likewise, as we had in the last year, a strong development for DORC. I think that's it.

Sebastian Frericks

Director of Investor Relations

Okay. So as we are almost up on time, just checking if there's any last question on the phone by e-mail, I don't have anything currently anymore.

Operator

So this is the moderator speaking. There are no questions in the telephone line or on the audio line in this call. So therefore, I hand over to Mr. Frericks.

Sebastian Frericks

Director of Investor Relations

Okay. Then thank you very much. And again, apologies It's an exciting time for us, and we hope to remain in that we had some difficulties. I hope we still did get to dialogue with as many of you as we possibly can over answer every question. And of course, the IR team is the next weeks. Thank you for sticking with us. Thank available next days and weeks, and we'll also be at a you for the good discussion and questions, and we look number of events in May and June to be facing your forward to keeping in touch and the next regular call is questions and look forward to the discussions with in early August. So look forward to that. Thank you very you. much.

Andreas Pecher

Interim Chairman of the Management Board & Interim CEO

Thank you.

Justus Felix Wehmer

CFO & Member of the Management Board

Thank you.

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Disclaimer

Airtime Software AG, Germany is the publisher of this transcript.