Carl Zeiss Meditec : Analyst conference 3 months 2025/26

About this update from Carl Zeiss Meditec Ag

‌Carl Zeiss Meditec Group 3M 2025/26 Results Andreas Pecher , President and CEO Justus Felix Wehmer , CFO 12 February 2026 01 02 03 3M 2025/26 at a Glance Financial Performance Key Topics and Outlook ‌Agenda‌ ‌Weak start to FY 2025/26 with revenue and EBITA below PY FX and unfavorable product mix cause margin drop 3M 2025/26 Revenue FX-adj. revenue -2.1% mainly from USD € 467.0m FX-adj. revenue -0.7% when factoring all currency headwinds of -€20m, mainly incl. USD and CNY, 3M 2024/25 -4.8% arising from German exports invoiced in foreign currencies to the ZEISS Group's distribution network 490.5 Revenue decline both in Equipment and consumables Softer start to the FY following the exceptionally strong equipment delivery baseline in Sep 2025 Revenue loss from bifocal IOL in China following its withdrawal from current VBP tender; delayed refractive treatment pack sales due to the late timing of the Chinese New Year holidays 3M 2025/26 3M 2024/25 3M 2025/26 3M 2024/25 35.2 522.1 € 471.2m -9.7% € 8.1m -77.0% Order entry FX- adj. orders declined by -6.9% Slight increase in order backlog to €404.7m (30 Sep 2025: €379.6m ) Service Equipment 52% Revenue breakdown 11% Consumables 37% EBITA 1 EBITA margin at 1.7% (PY 7.2%) Significant decline in EBITA mainly driven by FX effects and unfavorable product mix OpEx ratio weighed on margins, as expenses remained stable Earnings before interest, taxes and amortization of intangible assets from purchase price allocation 01 02 03 3M 2025/26 at a Glance Financial Performance Key Topics and Outlook ‌Agenda‌ ‌Ophthalmology Weak start due mainly to refractive phasing and bifocal IOL sales loss in China Revenue 3M 2025/26 3M 2024/25 376.2 € 356.9m -5.1% FX-adj. revenue declined by -2.4% Revenue pressured by FX effects, strong prior-year-end equipment sales, later phasing of refractive treatment pack sales and the loss of bifocal IOL sales in China Potential bifocal IOL scrap risk estimated at ~€8m in Q2 (treated as non-recurring impact), successor model registration progressing well EBITA margin 3M 2025/26 3M 2024/25 4.8% -0.4% -5.2 pp Gross margin declined -1.9pp driven by FX effects and unfavorable product mix OpEx ratio weighed -2.8pp on margin while expenses remained stable Revenue Split of total revenue OPT 76% Equipment 45% of OPT revenue Service 9% Consumables 46% ‌Microsurgery Margin decline due to FX headwinds and unfavorable product mix Revenue 3M 2025/26 3M 2024/25 3M 2025/26 3M 2024/25 114.3 15.1% € 110.1 -3.7% 8.7% -6.5 pp FX-adj. revenue declined -0.9% Soft revenue despite a modest base mainly reflects exceptionally strong deliveries towards prior fiscal year end; Unfavorable mix with slower than planned deliveries of neurosurgical microscopes weighing on profit EBITA margin Gross margin -5.5 pp lower yoy arising from FX effects, unfavorable product mix and amortization of capitalized R&D for KINEVO ® OpEx ratio weighed -1pp on margin while expenses remained stable Revenue Split of total revenue MCS 24% Equipment 79% of MCS Service 15% revenue Consumables 6% ‌Regional development EMEA stable while softer performance in Americas and APAC Americas 25.0% Americas 3M 2025/26 3M 2024/25 133.7 € 116.7m -12.7% FX-adj. revenue decreased -6.2% Weaker investment climate amid heightened geopolitical volatility Revenue decline in key markets incl. US EMEA 3M 2025/26 37.2% EMEA 3M 2024/25 174.0 € 173.6m -0.2% FX-adj. revenue growth of +1.2% Resilient development supported by growth in selected markets, incl. the Middle East Sideways in core European markets, incl. Germany, Spain and the Nordics APAC 37.8% APAC Incl. 17.7% China 3M 2025/26 3M 2024/25 182.7 € 176.7m -3.3% FX-adj. revenue decline of -2.2% China remained stable; India and Australia showed positive trends; weaker revenue in Japan and South Korea ‌P&L - Contraction in margin while OpEx remained stable 3M 2025/26 3M 2024/25 in €m in % of sales 48.6 Income Statement Gross profit 252.1 51.4 226.1 48.4 226.2 46.1 capitalized R&D expenses for KINEVO ® 115.9 24.8 120.5 24.6 ▪ OpEx flat y/y while ratio increased due to negative 34.7 7.4 operating leverage G&A expenses 28.2 5.7 75.5 16.2 ▪ EPS down to -€0.06 driven by sharp EBIT decline and R&D expenses 77.5 15.8 negative financial results, primarily arising from EBIT 1.1 0.2 higher interest expenses 28.0 5.7 EBITA 8.1 1.7 ▪ Adj. EPS down to €0.03, based on logic of adj. EBITA, 35.2 7.2 10.3 2.2 Adj. EBITA 33.1 6.7 purchase price liabilities in financial result, FX/hedging EPS (€) -0.06 result not adjusted 0.18 Adj. EPS (€) 0.03 0.24 Gross margin decline due to FX, lower contribution from neurosurgical microscopes, IOLs and refractive treatment packs, and higher amortization of excluding non-cash valuation effects on contingent ‌EBIT, EBITA, adj. EBITA bridge EBITA 3M 2025/26 €m 3M 2024/25 €m yoy % EBIT 1.1 28.0 -96.1 + Amortization of PPA* 7.0 7.2 -2.8 EBITA 8.1 35.2 -77.0 EBITA margin 1.7% 7.2% -5.5 pp ./. Other special items** -2.2 +2.1 - Adjusted EBITA 10.3 33.1 -68.9 Adjusted EBITA margin 2.2% 6.7% -4.5 pp * Regular amortizations on purchase price allocations (PPA) of DORC (€6.5m) and former acquisitions (€0.5m) ** legal expenses in connection with a lawsuit related to CZM CT (former IanTech) ‌Operating cash-flow improvement Cash flow statement 3M 2025/26 3M 2024/25 in €m Cash flow from operating activities -26.3 16.7 Cash flow from investing activities -17.6 0.7 Cash flow from financing activities Net financial debt -365.6 -16.9 -281.7 as of 31 st Dec 2025 as of 31 st Dec 2024 50.1 Operating cash flow increased, mainly driven by a strong reduction in receivables, in particular from third parties, and income tax refunds reflecting weaker operating results Investing cash flow improved, primarily due to lower investments in property, plant and equipment compared to the prior year Financing cash flow declined, mainly impacted by the reduction of liabilities to the ZEISS Group Treasury Net financial debt at a lower level compared to a year ago 01 02 03 3M 2025/26 at a Glance Financial Performance Key Topics and Outlook ‌Agenda‌ ‌Guidance temporarily suspended in January - changes vs. Dec 2025 Message at 12M 24/25 analyst conference How things evolved Bifocal IOL (AT lisa 809) withdrawn from existing VBP tender and can't be sold to public hospitals Ambiguity in VBP withdrawal, while license still valid, investigating possibility to sell to other markets or private section How to treat stocks remains unclear, in worst case need to recall and scrap Limited re-sale opportunities for bifocal IOLs Partial recall of product negotiated with external distributors and Carl Zeiss China, earnings risk around €8m for CZM 2 nd VBP will pressure IOL prices, magnitude rather softer than the 1 st nation-wide tender In multifocal categories, Chinese companies have passed registration Price competition in multifocal categories expected to be tougher than previously assumed - new VBP tender expected from April 2026 Competition in equipment heating up, buy local policies expanding Anticipation of weaker equipment sales in October/November and recovery as of December (following strong year end 2024/25). Currently weaker demand in US and Americas markets, internal sales forecasts have been reduced to account for weaker capex outlook ‌ZEISS remains strongly committed to innovation and expansion of the operational footprint in China New Campus construction launched in Shanghai, positioned as a key global innovation hub Transfer of manufacturing for key consumables and equipment SMILE ® pro procedures > 50,000 since its launch in China ‌We will provide new guidance at latest with half year results considering the following factors: Headwinds such as Trade barriers, regulatory changes, weak consumer climate and FX will further pressure our business in FY 25/26 - we will be able to provide further quantification by May Swing factors Non-recurring items Key positive drivers Timing of successor Bifocal IOL registration and launch Expected in March Old Bifocal IOL scrap FQ2 VISUMAX ® 800 (SMILE ® pro) rollout in China VBP results Expected April / May Results of reprioritization of R&D projects and potential impact on IP FH2 Global KINEVO ® 900 S momentum Refractive procedure consumption during Chinese New Year holidays Expected March One-time non-recurring expenses related to reorganization projects FH2 and beyond Reorganization plan April / May ‌Temporary suspension of guidance for FY 2025/26 As announced through the ad-hoc news on 22 January 2026, the previous forecast of €2.3bn in revenue and an EBITA margin of 12.5% before non-recurring items is expected unlikely to be achieved due to a weak start to the year and a subdued sales outlook in the key markets of the US and China; The updated outlook for FY 2025/26, together with an update on further reorganization and cost-reduction measures, focusing on accelerating product localization, reprioritizing R&D activities, and implementing additional efficiency initiatives, will be presented as soon as possible, at the latest with the six-month results on 12 May 2026 . By then, more detailed assessments are also expected regarding consumption patterns during the Chinese winter season in the refractive market, as well as the outcome of the nationwide volume-based tender for IOLs in China.

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