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Annual Report Carl Zeiss Group
2008/09
2008/09 2007/08 2006/07
EUR mill. % EUR mill. % EUR mill. %
Sales revenues 2,101 100 2,731 100 2,604 100
Domestic (Germany) 364 17 449 16 432 17
Foreign 1,737 83 2,282 84 2,172 83
EbIT –67 –3 343 13 394 15
Consolidated net result –161 –8 178 7 233 9
Income taxes 1 – –100 –3 –142 –5
Result before taxes –162 –8 278 10 375 14
Depreciation/amortization of fixed assets
net of post-capitalization/write-ups 140 7 134 5 146 6
Changes in the provisions for pensions and
other noncurrent provisions1) 19 1 20 1 7 –
Adjustment for non-cash and
unusual cash-relevant expenses
and income of a material nature 79 4 64 2 21 1
Cash flows before income taxes2) 76 4 496 18 549 21
Cash flows from operating activities 102 266 386
Cash flows from investing activities –139 –212 -545
Cash flows from financing activities 154 –46 140
Total assets 3,447 100 3,591 100 3,433 100
Property, plant and equipment 537 16 555 15 528 15
Capital expenditure 80 118 107
Depreciation 95 99 114
Inventories 770 22 829 23 718 21
Equity 1,004 29 1,197 33 1,041 30
Net liquid assets3) 478 615 612
Number of employees as of balance sheet date
(September 30) 12,872 13,060 12,257
Domestic (Germany) 8,307 8,440 7,965
Foreign 4,565 4,620 4,292
1) Adjusted for investment in CTA in Germany and investments in plan assets abroad2) Determined following the recommendation of the German Financial Analysis Association/Schmalenbach-Gesellschaft3) Cash, cash equivalents and fixed-term investments net of credit liabilities
Financial Highlights(IFRS)
3
The Carl Zeiss Group
Carl Zeiss is an international group of companies in the optical and optoelectronic industries. The company has representatives in more than 30 countries. Carl Zeiss is a stock corporation which is wholly owned by the Carl Zeiss Stiftung (Carl Zeiss Foundation).
The products and services from Carl Zeiss set the standards in the Medical and Research Solutions, Industrial Solutions and Lifestyle Products markets. The ZEISS brand has stood for innovative ideas, precision and quality for more than 160 years.
Around 13,000 employees work for Carl Zeiss around the world. During fiscal year 2008/09, they generated revenues of EUR 2.1 billion.
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Business Groups of the Carl Zeiss Group
Increasingly powerful microchips are needed for small, compact laptops, digital
cameras and cell phones. Carl Zeiss is a market leader in lithography optics – the basic
technology required for microchip production. Carl Zeiss is also a pioneer in electron
and ion beam technology: scanning and transmission electron microscopes as well as
ion beam systems make even the tiniest structures visible.
Industrial
Metrology
Carl Zeiss helps make airplanes safer, cars faster, small plastic parts more resilient and
wind turbines more efficient – with innovative, leading-edge solutions. Measuring
machines and software from Carl Zeiss ensure maximum standards of quality wherever
high precision is a must.
Consumer
Optics/Optronics
Carl Zeiss brings the night sky to planetariums and breathtakingly crisp images to the
silver screen. Binoculars deliver perfect details for nature observation and opto-
electronic solutions from Carl Zeiss ensure more security. Millions of people around the
world value the quality and precision of optics from Carl Zeiss in their digital cameras
or camera phones.
Carl Zeiss Vision
(Joint Venture)
Carl Zeiss Vision is the world number two in the eyeglass market. Around the globe,
two people per second decide to purchase eyeglass lenses from Carl Zeiss Vision.
Carl Zeiss Vision is a joint venture of Carl Zeiss AG and the EQT private equity group.
Semiconductor
Technology
Medical systems from Carl Zeiss are used in ophthalmology, neurosurgery, and ear,
nose and throat surgery. Office-based doctors also put their trust in the know-how of
Carl Zeiss. The diagnostic and therapy systems help healthcare professionals to achieve
better treatment outcomes. In this way, patients also benefit from the innovative,
leading-edge technology produced by Carl Zeiss.
Medical Systems
Microscopy In biology, medicine, pharmacy or chemistry, microscopes from Carl Zeiss help scientists
acquire new knowledge. In industry, the systems are used for materials analysis and
quality inspection. School and university students can use special instruments to
experience the fascination of microscopy.
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Table of Contents
6 Our Inspiration
Foreword
16 ForewordoftheExecutiveBoard
20 ReportoftheSupervisoryBoard
Management Report
24 BusinessandGeneralConditions
26 NetAssets,FinancialPosition
andResultsofOperations
31 RiskReport
35 Outlook
36 EventsaftertheEndoftheFiscalYear
Business Groups
38 MarketsoftheFuture
40 SemiconductorTechnology
44 MedicalSystems
48 Microscopy
52 IndustrialMetrology
56 ConsumerOptics/Optronics
60 CarlZeissVision
(JointVenture)
From the Group
62 ResearchandDevelopment
64 HumanResources
At Your Service
66 TheCarlZeissFoundation
68 ExecutiveBoardandSupervisoryBoard
70 OrganizationalStructure
73 MajorSubsidiaries
andAssociatedCompanies
Consolidated Financial Statements
78 ConsolidatedIncomeStatement
79 ConsolidatedBalanceSheet
80 StatementofChangesinConsolidatedEquity
81 ConsolidatedCashFlowStatement
82 NotestotheConsolidated
FinancialStatements
120 Auditor’sReport
Cover photo:There are people who want to see for themselves. It is these people we work for. Anyone that wants to see and discover more will find the right solution for new perspectives and insights in the high-quality optics and opto-electronic systems from Carl Zeiss.
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Therearepeoplewhoonlytrustwhattheycansee.It is these people we work for.
Hardfactsareneededtomakeareliableassessment.Inmanyareasimportantdataisbasedonopticalandmeasuringinformation.Thisappliesjustasmuchtomaterialsanalysisandsecuritytechnologyastotheobservationofnaturalphenomenaorvirology.CarlZeissdevelopstechnologiesforpeoplewho,throughtheireverydayobservations,maketheworldthatlittlebitsafertolivein.
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Therearepeoplewhoarefightingdeatheverydayalthoughtheyareperfectlyhealthy.It is these people we work for.
Healthandthequalityoflifeareasinseparableasresearchandmedicine.SolutionsfromCarlZeissmakeiteasiertodiscover,investigateandtreatdisease.Whetherscientists,researchersordoctors–wefocusonhelpingthesepeopledetectandidentifymoreintheireverydaywork.
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Therearepeoplewhosimplywanttoknowmore.It is these people we work for.
Educationandresearchformthebasisofmodernsociety.Withouthighlyqualified,up-and-comingyoungspecialists,noprogresscanbemade.Wefirmlybelievethatthethirstforknowledgecanbeinstilledinyoungpeople.Toachievethisgoal,wearefullycommittedtoattractingschoolandcollegestudentstothefascinatingworldofscienceandoptics.
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As the pioneer of science in optics, we continue to challenge the limits of man’s imagination.
OurMission
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With our passion for excellence we create value for our customers and inspire the world to see in new ways.
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We make it visible.
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Dr. Dieter Kurz Dr. Michael KaschkeDr. Hermann Gerlinger
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Ladies and Gentlemen,
Dear Friends of Carl Zeiss,
Welookbackonafiscalyearthatsawtheworstglobaleconomiccrisisindecades.Thecrisisalso
leftitsmarkonCarlZeiss.Weoperateinhighlydynamicmarketsthatnotonlyenablestrong
growthrates,butalsoexperiencedynamicdownwardtrends–inthesemiconductorindustry,for
example.Wewereandcontinuetobepreparedforthesedevelopmentsspecifictoourmarkets.
However,theglobalrecessionintensifiedandacceleratedmarketmovementtoanunforeseeable
extent,requiringfastandconsistentcountermeasuresfromthecompany.Insuchturbulenttimesin
whichmanychangesoccur,vigilanceandvisionareofkeyimportance.CarlZeissdemonstrated
bothofthesequalitiesinthepastfiscalyear.
Itwasourgoaltoovercomethecrisisandthereforesafeguardtheeconomicsustainabilityofthe
companyandsecureasmanyjobsaspossible.Wehaveaccomplishedthisgoal.Weactedswiftly
and,togetherwithouremployees,havemasteredthedifficultsituationconfrontingus.Wehave
quicklyadaptedourcoststructuretothesalestrendandincomingorders.Inaddition,employees
andexecutivesinGermanyhaveagreedtoforgopartoftheircompensation–alsoinareasofthe
companythatremainedstableinfiscalyear2008/09.Inreturn,wegrantedaguaranteeof
employmentfortheGermansitesuntilSeptember2010.
Despiteoursavingsstrategy,wearenotlosingsightofourgoals.Weareinvestinginthefuture
withforesight–inresearchandtechnology,newproducts,salesandcustomerservice.Wearealso
continuingourcommitmenttotrainingandeducation.
Thegeneralgrowthdriversinourmarketsremainunchangedastheyarefocusedonmega-trends
ofthefuture.Theseinclude,forexample,healthandthequalityoflife,securityandmobility.None
ofthesekeyissueswascalledintoquestionbytheglobaleconomiccrisis.Withitssharpfocuson
theseissues,CarlZeisscontinuestohavegoodgrowthopportunitiesforthefuture.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS FOREWORDOF THE EXECUT IVE BOARD
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CarlZeissisfullyownedbytheCarlZeissFoundation.Thisenablesustomanagewithlong-term
perspectivesregardlessofshort-termcapitalmarketinterests.Asinthepast,weonceagain
achievedthisgoalinthereportingyear.
Inrecentyearswesucceededincreatingasolidfoundationforsustainedsuccess:thankstoits
broadportfolioandglobalfootprint,CarlZeissiswellandflexiblypositionedinitsmarkets.
Wedemonstratedthisflexibilityinfiscalyear2008/09.Thismakesusconfidentandstrongfor
thefuture.Wewillalsosuccessfullyrisetothechallengesahead–togetherwithourcustomers,
businesspartnersandemployees.
Oberkochen,December2009
Dr.DieterKurz Dr.MichaelKaschke Dr.HermannGerlinger
President&CEO MemberoftheExecutiveBoard MemberoftheExecutiveBoard
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“DespitetheeconomiccrisisCarlZeisshasmadeastrongstarttothenewdecade–adecadeinwhichwewillcontinueworkingonsolutionsforthenearandmoredistantfuture.Thisisanexcitingchallengeandamajorresponsibilitywithwhichwearecontributingtotheongoingadvancementofoursociety.”
Dr. Dieter Kurz
“Theglobalrecessiontriggeredbythefinancialcrisishasshownhowimportantitistohaveasolidfinancialbase.CarlZeisshasalreadyweatherproofeditsbalancesheetinrecentyears.Therefore,wewereandcontinuetobewellpreparedforstormytimes.”
Dr. Michael Kaschke
“Morethanalmostanyothercompany,CarlZeissstandsforinnovation.Weconstantlyinvestinresearchanddevelopment–notonlymoneybutalso,andaboveall,inknow-howandpassion.”
Dr. Hermann Gerlinger
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS FOREWORDOF THE EXECUT IVE BOARD
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Dr. h. c. Eggert Voscherau
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Report of the Supervisory Board to the Annual General Meeting
Ladies and Gentlemen,
TheSupervisoryBoardperformedthedutiesentrustedtoitinaccordancewiththelawandthe
articlesofassociationwithgreatdiligenceinthereportingperiod.WeadvisedtheExecutiveBoard
inthemanagementofthecompanyandmonitoredtheconductofthecompany’sbusiness.The
SupervisoryBoardwasdirectlyinvolvedinalldecisionsoffundamentalimportancetothecompany.
TheExecutiveBoardprovidedusbothinwritingandverballywithcomprehensiveinformation
aboutallrelevantaspectsofcorporateplanning,thecourseofbusinessandthepositionofthe
Group.Wediscussedimportanttransactionsindetailinplenarysessions.
Asfaraswasrequiredbythelawandtherulesofinternalprocedure,theSupervisoryBoardgave
itsconsenttotheExecutiveBoard’sreportsandproposalsondecisionsafterthoroughexamination
andconsultation.InadditiontotheworkinplenarysessionsandSupervisoryBoardcommittees,
IastheChairmanoftheSupervisoryBoardwasinregularcontactwiththeExecutiveBoard,where
Ireceivedregularinformationoncurrentbusinessdevelopmentsandmaterialtransactions.Three
ordinaryandtwoextraordinarySupervisoryBoardmeetingswereheldinthe2008/09fiscalyear.
Fixedelementsoftheplenaryconsultationswerethedevelopmentofthesales,revenueand
employmentsituationintheCarlZeissGroupanditsfinancialposition.Thereportingyearwas
dominatedbytheglobalrecessionandthecyclicaldownturninthesemiconductorindustry.The
comprehensivecostreductionandcashoptimizationprogramandthemeasurestosecurethe
long-termeconomicfutureofthecompanythereforereceivedparticularattention.
Akeyissueatboththeordinaryandextraordinarymeetingswasananalysisofthesituationand
optionsforthestrategicdevelopmentofCarlZeissVision,CarlZeissAG’slargestinvestment.
Atoneoftheordinarymeetings,theSupervisoryBoardpreparedtheefficiencyauditofitsactivities
whichistobeperformedinfiscal2009/10.
Tobeabletoperformitstasksefficiently,theSupervisoryBoardsetupthreecommittees.These
committeespreparedecisionsandtopicstobediscussedintheplenarysessions.Thecommittee
chairmenreportedregularlyinthosesessionsonthecontentsandresultsofcommitteemeetings.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS REPORT OF THE SUPERV ISORYBOARD
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TheChairman’sCommitteemetonceinthereportingperiod.Itsdeliberationscoveredthe
ExecutiveBoard’svariablecompensationfor2007/08andgoalsfor2008/09aswellasthe
preparationsforextendingDr.HermannGerlinger'scontract.
TheMediationCommitteeinaccordancewithSection27Paragraph3CodeterminationAct
(MitbestG)didnotneedtobeconvenedinthefiscalyearjustended.
TheAuditingCommitteemetthreetimes.Itsworkfocusedontheannualandconsolidated
financialstatements,theauditor’sreports,thefurtherdevelopmentoftheriskmanagementsystem
andtheexpansionoftheCarlZeissGroup'scomplianceorganization.TheCommitteeissuedthe
instructionsfortheauditandspecifieditskeyaspects.TheauditortookpartinalloftheCommit-
tee’smeetingsandreportedonmaterialfindingsandoccurrencesresultingfromtheaudit.The
AuditingCommitteeconsideredindepththerequirementsofthelegislationonthemodernization
ofcompanyannualaccounts(BilMoG)andtranslatedthemintospecialrulesofinternalprocedure
foritsownactivities.
TheKPMGAGWirtschaftsprüfungsgesellschaft,Berlin,auditedthefinancialstatementsprepared
inaccordancewiththerulesoftheGermanCommercialCode(HGB)forthefiscalyearfrom
October1,2008toSeptember30,2009andthemanagementreportofCarlZeissAG.The
AuditingCommitteehadgiveninstructionsfortheauditinaccordancewiththeresolutionofthe
AnnualGeneralMeetingofApril27,2009.Theauditorissuedanunqualifiedauditor'sreport.
TheconsolidatedfinancialstatementsofCarlZeissAGwerepreparedonthebasisoftheInter-
nationalFinancialReportingStandards(IFRS).Theauditoralsoissuedanunqualifiedauditor’s
reportfortheconsolidatedfinancialstatementsandcorporatemanagementreport.
Allreportsandthepapersfortheannualfinancialstatementswereprovidedtoallmembersof
theSupervisoryBoardingoodtime.TheywerediscussedthoroughlyattheAuditingCommittee
meetingofJanuary26,2010,andthemeetingoftheSupervisoryBoardonFebruary11,2010.
Theauditorparticipatedintheseconsultationsandexplainedthematerialresultsoftheaudit.
Followingourownexaminationoftheannualandcorporatefinancialstatements,themanage-
mentreportandthecorporatemanagementreport,weagreedwiththeresultoftheauditand
approvedtheannualandcorporatefinancialstatementsinaccordancewiththerecommendation
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oftheAuditingCommitteeatthemeetingofFebruary11,2010.Theannualfinancialstatements
havethereforebeenadopted.WeagreewiththeExecutiveBoard’sproposalfortheuseofnet
income.
TheSupervisoryBoard’speriodofofficeexpiredattheendoftheAnnualGeneralMeetingon
April27,2009.Followinganelectionwhichwaspartlyrequiredbythechangeinthecodetermina-
tionregime,theSupervisoryBoardisnowstructuredinaccordancewithSection7Paragraph1
No.2MitbestGandcontains16(previously12)members.Theshareholderandtheemployees
eachappointeightmembers.ThefollowingnewSupervisoryBoardmemberswereelected:
Dr.KlausDieterichandProfessorGünterStockasrepresentativesoftheshareholderandHariolf
Abele,HellmuthAeugle,ReinhardDickehuthandKarl-HeinzSchusterasrepresentativesofthe
workforce.EmployeerepresentativesHans-JürgenHeinickeandDr.WinfriedScherlelefttheBoard.
Wewouldliketothankbothofthemfortheircontributionsandeffortsasmembers.Theconstitu-
tivemeetingoftheSupervisoryBoardwasheldonMay27,2009.Iwasre-electedasChairman
andJürgenDömelasDeputyChairmanoftheSupervisoryBoard.
TheSupervisoryBoardextendedtheappointmentofDr.HermannGerlingerasamemberofthe
ExecutiveBoardofCarlZeissAGuptoSeptember30,2014atthemeetingheldinFebruary2009.
TheSupervisoryBoardwouldliketoexpressitsthanksandappreciationtotheExecutiveBoard,
employeesandemployees’representativesfortheirhardworkinthepastfiscalyear.
Oberkochen,February2010
FortheSupervisoryBoard
Dr.h.c.EggertVoscherau
Chairman
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS REPORT OF THE SUPERV ISORYBOARD
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Corporate Management Report
Infiscalyear2008/09theworldeconomyexperiencedthebiggestcrisissinceWorldWarII.CarlZeissalsofelttheimpact:revenuesandearningsaresignificantlybelowlastyear'sfigures.TheCarlZeissGroupoptimizeditscoststructureandadaptedittothereducedsalesvolumewithacorporate-widecostreductionprogram.
Thecompanyuseditsflexiblepersonneltoolstocushionthe
impactofthefluctuationsresultingfromthecurrenteconomic
climateandordersituation:thetimeaccruedinflextime
accountswasreduced,employeesweredeployedinother
businessgroupsandshorterworkinghourswereintroduced.
InJune2009,CarlZeissandemployeerepresentativesagreedon
an“overallpackagetoovercomethecurrenteconomicsituation”
fortheGermansitesboundbycollectivewagebargainingsettle-
ments.Thisdocumentstipulatedthatthe2.1percentincrease
inpayratesscheduledforMay2009wouldbepostponedto
March2010andthataplannedone-timebonuspaymentwould
nolongerbemade.Inaddition,employeesagreedtoforgo
75percentoftheirvacationbonusandboththeirvacationand
Christmasbonusesinfiscalyear2009/10.Employeesnotsubject
tothecollectivelyagreedpayratesandseniorexecutivestaff
madeanequivalentcontribution.Inreturn,theCarlZeissGroup
willnotlayoffanypersonnelinGermanyintheperiodto
September30,2010.
Withthisoverall,corporate-widepackage,CarlZeissachievedits
aspiredgoalofreducingpersonnelcostsintheshortterm.The
companyachievedamajorpartofthesavingsthankstothe
willingnessofemployeestoforgospecialbonuspaymentsand
acceptapostponementofthescheduledpayincrease.Another
contributoryfactoristheuseofflexibleHRtoolssuchasthe
workingofshorterhours,theexpiryoftemporaryemployment
contractsandpartialretirementschemes.
Targeted Portfolio Expansion
Infiscalyear2008/09CarlZeissimplementedtargetedmeasures
toexpanditsportfolio.
Business and General Conditions
Business Trend
Infiscalyear2008/09theworstglobaleconomiccrisisfor
decadeshadastrongimpactonimportantmarketsofthe
CarlZeissGroup.Thissubstantiallyreducedyear-on-year
revenuesandearnings.
TheIndustrialMetrologyandSemiconductorTechnologyGroups
wereparticularlyaffectedbytheglobalfallindemand.The
downturnalreadyevidentinthesemiconductorindustrysince
thepreviousyearwasworsenedbythegeneralrecession.
IndustrialMetrologystartedfiscalyear2008/09withanincrease
inrevenues.Fromthesecondquarteronwards,thebusiness
groupincreasinglyfelttheeffectsofthesharpdropinsalesin
themechanicalengineeringandautomotiveindustriesand
theirassociatedreluctancetoinvest.
Incontrast,theMedicalSystemsandMicroscopyGroups
reportedastable,positivedevelopment.However,thisdidnot
sufficetocompensateforthedownturninrevenuesrecorded
bytheCarlZeissGroup.
Cost Structure Optimized
InthepastfiscalyearCarlZeissrigorouslycounteredtheeffects
oftheglobalrecession:thecompanyoptimizeditscoststructure
andadaptedtothereducedvolumeofbusiness.Nevertheless,
CarlZeisscontinuedtomaketargetedinvestments–inanex-
pansionofthesalesandservicestructure,forexample.Through
ongoinghighinvestmentinresearchanddevelopment,CarlZeiss
isconsolidatingandexpandingitstechnologyleadership.
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EffectiveOctober1,2008,CarlZeiss3DMetrologyServices
GmbH,Aalen,Germany,acquiredonepercentofthesharesin
CarlZeiss3DAutomationGmbH,Essingen,Germany,andnow
holds51percentofitsequity.
SinceNovember2008,CarlZeisshasbeenrepresentedin
Istanbul,Turkey,byitsownIndustrialMetrologybranchoffice.
Thecompanyholdsamajorityinterestinthenewlyfounded
companyCarlZeissÖlçümCihazlarıTicaretLimitedSirketi.
InDecember2008CarlZeissIndustrielleMesstechnikGmbH,
Oberkochen,Germany,acquiredHolometricTechnologies
Forschungs-undEntwicklungs-GmbHandHolometricTechnolo-
giesSoftwareentwicklungs-undConsultingGmbH,bothbased
inEssingen,Germany.
Environmental Protection Firmly Enshrined in Core Values
Environmentalprotectionisfirmlyenshrinedinthecorevaluesof
thecompany:theresponsibleuseofnaturalresourcesisaway
oflifeatCarlZeiss.Fromthedevelopmentandmanufactureof
productsrightuptotheirshipment,CarlZeisstakesenvironmen-
talaspectsintoaccountatalltimes.Thecompanyhasalso
definedenvironmentalprotectionrequirementsforitssuppliers.
AllGermanproductionsitesandanumberofforeignsubsidiaries
arecertifiedtointernationalenvironmentalmanagement
standardISO14001.
Infiscal2008/09,CarlZeissinvestedEUR9millioninenviron-
mentalprotection(lastyear:EUR8million).
Further Expansion of Technology Lead
CarlZeissisatechnologyleaderinmanyareasoftheopticaland
opto-electronicindustries.Tofurtherincreasethislead,the
companyinvestsinresearchanddevelopmentonanongoing
basis:infiscalyear2008/09R&Dexpendituretotaled
EUR284million(lastyear:EUR321million).Thiscorresponds
to14percentofrevenues(lastyear:12percent).
CarlZeissgeneratesaround60percentofitsrevenueswith
productsnotolderthanfiveyears.Duringthereportingyearthe
companyappliedfor346newpatents(lastyear:422).Overall,
CarlZeissholdsapproximately3,600patentsforover1,200
inventionsaroundtheglobe.
Growth Factors Remain Unchanged
Despitetheglobaleconomiccrisis,thecentralgrowthdriversof
theCarlZeissGroupremainunchanged.Thecompany’sfocuson
themarketsforMedicalandResearchSolutions,IndustrialSolu-
tionsandLifestyleProductscontinuestooffermanyopportuni-
tiesforthefuture.
Health,qualityoflifeandefficiencyinhealthcarearethekey
driversoftheMedicalandResearchSolutionsmarket.Thedemo-
graphictrendandtheincreasingdevelopmentofemerging
economiesarefurtheraspectswhichwillstabilizethedemand
formedicaltechnologysolutionsinthelongterm.
Digitizationisthemainpropellingforcebehindgrowthagainthis
year:mobility,flexibility,availabilityofinformation,safety,
networkingandnanotechnologyarethedriversoftheIndustrial
Solutionsmarket.
2008/092007/082006/072005/062004/05
230 254 290 321 284 EUR million
10 10 11 12 14 in % of revenues
Expenditure on research and development
OUR INSP IRAT ION FOREWORD MANAGEMENT REPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS BUS INESS ANDGENERAL CONDIT IONS
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2008/092007/082006/072005/062004/05
108 118 107 118 80 EUR million
Investments in property, plant and equipment
FortheLifestyleProductsmarket,CarlZeissdevelopsoptical
systemsandmoduleswhichpromotepersonalcreativityand
challenginghobbies,communicateknowledgeandentertain.
Themarketdriversareinnovative,leading-edgeconsumer
electronicsproducts,equippedwithexcellentoptics.
Net Assets, Financial Position and Results of Operations
Net Assets
DuringthereportingyearthetotalassetsfellbyEUR144million
toEUR3,477million.
Intangible Assets
TheintangibleassetsincludegoodwillintheamountofEUR169
million.Theimpairmenttestsconductedinthereportingperiod
didnotleadtoanyamortizationofthegoodwillonthebalance
sheet.
TheEUR19milliondecreaseinintangibleassetstoEUR294
millioncanlargelybeexplainedbyamortizationinthereporting
period.
Property, Plant and Equipment
Inthe2008/09fiscalyear,thecompanyinvestedatotalof
EUR80millioninproperty,plantandequipment(lastyear:
EUR118million).Depreciationonproperty,plantandequipment
amountedtoEUR95million(lastyear:EUR99million).
ThemainfocusoftheCarlZeissGroup’sinvestmentswasstate-
of-the-artproductionfacilities.Investmentswerealsomadein
infrastructuralimprovements,suchasmodernizationprojectsin
thecontextoftheinfrastructurestrategyforthecompany’s
headquartersinOberkochen.
Investments Accounted for Applying the Equity Method
ThebookvalueoftheinvestmentinCarlZeissVisionHolding
wasfullyamortizedinthereportingperiod.Inaddition,thevalue
ofCarlZeissVisionHolding’sprofit-participatingcertificateshad
tobereducedbyEUR58millioninaccordancewiththeequity
method,leavinganetbookvalueofEUR12million.CarlZeiss
VisionHolding’sprofit-participatingcertificatesarerecognized
underothernoncurrentassets.
Other Noncurrent Financial Assets
OthernoncurrentassetsincreasedbyEUR11millionoverthelast
year.Thisisprimarilyattributabletothepurchaseofcorporate
bondstotalingaroundEUR75million.Asdescribedabove,a
contraryeffectresultedfromtheimpairmentoftheprofit-partici-
patingcertificates.
Working Capital
InventoriescametoEUR770millionasofthebalancesheetdate
(lastyear:EUR829million).Thedecreasemustbeseenpartly
inthecontextofthelowervolumeofbusinesscomparedtothe
previousyear.Inaddition,inventorieswerereducedthrough
muchmoreintensiveworkingcapitalmanagementinthe
reportingperiod.
AtEUR439million,tradereceivablesalsofellwellbelowlast
year'svalueofEUR515million.Thisdevelopmentcanbeex-
plainedbythereducedsalesrevenueandtheeffectsofworking
capitaloptimizationinthereportingperiod.TheEUR133million
fallincurrentassetswasessentiallyduetoreducedfixed-term
depositsmaturinginmorethan90days.Liabilitiestoward
suppliersasofthebalancesheetdatewereEUR103million(last
year:EUR156million).Thelowerfigureismainlyduetothe
reductioninthebusinessvolume.
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2008/092007/082006/072005/062004/05
17 22 30 33 29 in % of total assets
Equity ratio
Provisionsarevirtuallyunchangedcomparedtothepreviousyear
andmainlyincludeprovisionsforincometaxesaswellashuman
resources-andsales-relatedprovisions.
Equity Ratio Still Strong
Theequityratiowentdowninthereportingperiodbyfour
percentagepointsto29percent(lastyear:33percent).The
crucialfactorherewasthenetlosspostedforthe2008/09fiscal
year.Furthermore,intheappropriationofprofitsfor2007/08,
CarlZeissAG–inaccordancewiththefoundation’sconstitution
–paidadividendofEUR10milliontotheCarlZeissFoundation.
CarlZeissMeditecAGalsomadeadividendpaymentofEUR15
million,withEUR6milliongoingtominorityinterests.
External Financing of Pension Obligations Continues
ThewayinwhichtheCarlZeissGroup’spensionobligations
werefinancedwasrestructuredin2005/06.Thecompany’s
pensioncommitmentsremainunchanged.
Thecompanytransferredfundsforitspensionobligations
towardactiveemployeesinGermanytoadedicatedtrust,the
CTA(ContractualTrustArrangement),thusclearlyseparatingthe
resourcesforbusinessoperationsfromthepensionobligations.
Thisincreasesthetransparencyandinternationalcomparability
offinancialreporting.Thelegallyindependenttrustinveststhe
assetstransferredtoitunderanappropriatelong-terminvest-
mentstrategy.
Duetocontinuedallocationstothetrustandthesuccessful
investmentofitsassetsseparatelyfrombusinessoperations,the
companyoncemoresucceededinfinancingallpensionobliga-
tionstowardactiveemployeesinGermanyexternallyinthe
reportingperiod.Thesehadatotalvalueofapproximately
EUR370millionasofthebalancesheetdate.
Pensionobligationstowardsretireeswillcontinuetobeshownin
fullonthebalancesheetofCarlZeissAGanditsGerman
subsidiaries.ForeignsubsidiariesoftheGroupalsohavepension
obligationstowardemployees.PensionprovisionsofEUR834
millionarerecognizedintheconsolidatedbalancesheet(last
year:EUR856million).Asinthepreviousyear,thiscorresponds
to24percentoftotalassets.
Profit-participating Certificates
Theprofit-participatingcertificatescomprisethoseofseries
2004-D,2005-D,2006-D,2007-Dand2008-D,allwithatermof
fiveyears.EachcertificatehasaparvalueofEUR250.
Theprofit-participatingcertificatesarerecognizedinthe
consolidatedfinancialstatementsoftheCarlZeissGroupas
liabilities.Althoughtheprofit-participatingcertificatesborea
yieldof20percentineachofthepastfouryears,alosspartici-
pationunderthetermsofthecertificateshadtobewrittenfor
fiscal2008/09becauseoftheGroup’sresults.Theliabilityfrom
theprofit-participatingcertificateswasaccordinglyreducedin
theincomestatementbyEUR0.9million.
Financial Position
Continued Stable Net Cash Position
TheCarlZeissGroup’scashpositioncanberegardedashighly
stable,regardlessofthecontinuingeffectsoftheglobal
economiccrisis.Inaddition,thecompanyrefinancedsuccessfully
inthereportingperiodthroughtheplacementoftwopromissory
noteloanstotalingEUR160million,despitethedifficultcapital
OUR INSP IRAT ION FOREWORD MANAGEMENT REPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS NET ASSETS , F INANCIAL POS IT IONANDRESULTS OF OPERAT IONS
28
marketenvironment.TheCarlZeissGrouphasadiverseand
flexibletoolkitatitsdisposalforfinancingitsbusinessopera-
tions.Thisincludesinparticularpromissorynoteloansandcredit
linearrangementswithbanks.
Acashflowbeforeincometaxes1)ofEUR76million(lastyear:
EUR496million)wasrecognizedinthereportingperiod,
amountingtofourpercentofrevenues.
Theoutflowoffundsforinvestments,acquisitionsandthe
financingofpensionobligationsthroughtheContractualTrust
Arrangement(CTA)wasnotfullycoveredbytheinflowoffunds
fromoperatingactivities.
ThefallincashflowfromoperatingactivitiesbyEUR164million
toEUR102million(lastyear:EUR266million)wassubstantially
determinedbythenegativenetresultfortheyear.Apositive
countereffectwasproducedbythereductionincurrentassets
andtradereceivables;theimpactofintensifiedworkingcapital
managementinthereportingperiodwasevidenthere.
ThecashflowfrominvestingactivitiescametominusEUR139
millioninthereportingperiod(lastyear:minusEUR212million).
Investmentsinproperty,plant,equipmentandintangibleassets
werelowerthaninthepreviousyear.Inaddition,theoutflowof
fundsforacquisitionswassubstantiallybelowthatof2007/08.
ThecashflowfromfinancingactivitieswasEUR154million(last
year:minusEUR46million)andincludedpromissorynoteloans
totalingEUR160millionwhichwereplacedinthereporting
period.
Thecashandcashequivalents2)cametoEUR977millionasof
thebalancesheetdate(lastyear:EUR950million).Netcash3)
wasEUR478million(lastyear:EUR615million).TheCarlZeiss
Group’scashpositioncanthereforebeconsideredhighlystable
despitetheinvestmentsmadeduringthereportingperiod,
offeringasoundplatformforrealizingthecompany’slong-term
growthstrategy.
Results of Operations
Economic Crisis Depresses Revenues and Profits
TheCarlZeissGrouppostedanetlossforfiscalyear2008/09of
EUR161million,havingachievedanetprofitofEUR178million
inthepreviousyear.Theresultsofoperationsforthereporting
periodwereseverelyaffectedbythedifficulteconomicenviron-
ment,particularlyinindustrialbusiness.
DuetothesteepdeclineindemandintheSemiconductor
TechnologyandIndustrialMetrologyGroupsinthewakeofthe
generalrecession,theCarlZeissGroup’srevenuesfellby
23percenttoEUR2,101million(lastyear:EUR2,731million).
Adjustedforcurrencyinfluences,thiswouldhaveamountedto
adropinrevenuesof25percent.Increasedrevenueswere
achievedintheMicroscopyandMedicalSystemsGroupsinthe
reportingperiod.
2008/092007/082006/072005/062004/05
340 410 549 496 76 EUR million
15 17 21 18 4 in % of revenues
Cash flow before income taxes
1) DeterminedfollowingtherecommendationoftheGermanFinancialAnalysis
Association/Schmalenbach-Gesellschaft2)Cash,cashequivalents,securitiesandfixed-terminvestments3)Cashandcashequivalentslesscreditliabilities
29
Foreign business accounted for 83 percent (last year: 84 percent)
of revenues. Despite the generally difficult overall economic
situation, the Group succeeded in achieving two-digit revenue
growth in Asia in 2008/09. The absolute revenue volume in
America was held stable at the previous year’s level.
The problematic business development in the Semiconductor
Technology and Industrial Metrology Groups due to the reces-
sion was reflected in incoming orders as well as revenues. New
orders fell by 34 percent compared to the previous year, coming
to EUR 2,111 million.
The Carl Zeiss Group’s other operating income decreased to
EUR 115 million, after EUR 122 million the year before. The
decline in other operating expenses from EUR 588 million in the
previous year to EUR 511 million mainly resulted from a corpo-
rate-wide cost reduction program.
In the reporting period material expenses fell by 19 percent to
EUR 801 million and should be seen in the light of the lower
revenue level.
Personnel expenses were reduced to EUR 849 million, a differ-
ence of EUR 28 million compared to the previous year. This can
be explained principally by the effects of the “overall package to
overcome the economic situation” and the equivalent contribu-
tion from employees not subject to the collectively agreed pay
rates and senior executive staff.
09.30.0909.30.0809.30.0709.30.0609.30.05
471 275 612 615 478 EUR million
Net cash
2008/09
2007/082006/072005/062004/05
128 167 233 178 – 161 EUR million
Net result
2008/092007/082006/072005/062004/05
2,217 2,433 2,604 2,731 2,101 EUR million
82 84 83 84 83 Outside Germany in %
Revenues
OUR INSP IRAT ION FOREWORD MANAGEMENT REPORT BUS INESS GROUPS FROM THE GROUP AT YOUR SERV ICE F INANCIAL STATEMENTS NET ASSETS , F INANCIAL POS IT ION AND RESULTS OF OPERAT IONS
30
Comparedtothepreviousyear,amortizationanddepreciationin
theGroupincreasedbyEUR6milliontoEUR140million,
includingaroundEUR16millionasaconsequenceofrecording
assetsinthecontextofpurchasepriceallocation.
TheEbITDA(EarningsbeforeInterest,Taxes,Depreciationand
Amortization)for2008/09cametoEUR73million(lastyear:
EUR477million).
TheCarlZeissGroup’sEbIT(EarningsbeforeInterestandTaxes)
wasminusEUR67million,EUR410millionbelowthecompa-
rablefigureforthepreviousyear.
ThefinancialresultwasminusEUR95million(lastyear:minus
EUR65million),significantlyhigherinthisreportingperiodthan
thepreviousyearduetotheresultsfrominvestmentsaccounted
forapplyingtheequitymethod.Thisamountincludedminus
EUR70millionresultingfromthepartialrecognitionofthe
CarlZeissVisionGroup’snetlossforfiscalyear2008/09.
Inaddition,interestincomefellbelowthepreviousyear'slevel
duetoloweraveragenetcashandlowerinterestrates.
Taxexpensesforfiscalyear2008/09wereoffsetinfullby
deferredtaxesandresultedintaxincomeofEUR0.7million.
ThisledtoanetlosstotalingEUR161millionforthereporting
period.
Theresultsofoperationsshowedsevereeffectsfromthegeneral
recessioninthereportingperiod.TheCarlZeissGrouphas
successfullyovercomethecrisissofarand,thankstoitsstable
netassetsandfinancialsituation,hasastableplatformforthe
future.
Employees
Asofthebalancesheetdate,theCarlZeissGrouphad12,872
employees(lastyear:13,060)aroundtheglobe.Changestothe
scopeofconsolidationadded51employeestothistotalinthe
reportingperiod.
Thecompanyhasaworkforceof4,565peopleoutsideGermany
(lastyear:4,620).451apprenticesandtrainees(lastyear:441)
wereworkinginGermanyasofthebalancesheetdate,giving
CarlZeissthesamefivepercenttraineeratioaslastyear.
General Recession Impacts Corporate Value
InthereportingyearCarlZeisswasunabletorepeatthepositive
trendincorporatevalueenhancementreportedinprevious
years.TheEVA®(EconomicValueAdded)indicator,whichserves
asaninternalbarometerofbusinesssuccess,amountedtominus
EUR169millionforfiscalyear2008/09.Thiswasparticularly
attributabletothesubstantiallynegativeresultpostedbythe
SemiconductorTechnologyGroupasaresultoftherecession.
TheMedicalSystemsandConsumerOptics/OptronicsGroups
wereonceagainabletoincreasetheircorporatevalue.This
performanceindicatorresultsfromnetoperatingprofitminus
thecostofcapital.Therateusedtodeterminethecostofcapital
rangesbetweeneightandtwelvepercentwithintheCarlZeiss
Group.
2004/05 2005/06 2006/07 2007/08 2008/09
EURmill EURmill EURmill EURmill EURmill
EbITDA 369 437 540 477 73
EbITDAmargin 17% 18% 21% 17% 3%
EbIT 250 313 394 343 –67
EbITmargin 11% 13% 15% 13% –3%
Netresult 128 167 233 178 –161
MANAGEMENT REPORT NET ASSETS , F INANCIAL POS IT IONANDRESULTS OF OPERAT IONS
31
Goals and Principles of Financial Management
TheCarlZeissGroup’sglobalfinancialmanagementsystem
incorporatesallsubsidiariesandiscentrallycoordinatedatthe
corporatelevelbyCarlZeissFinancialServicesGmbH.
Financialmanagementisgearedtotheoperationalandstrategic
stipulationsofCarlZeissAG:theprimeobjectivesaretoprovide
liquidfundsforbusinessoperations,tosecurefinancialflexibility
forfurtherexpansionofbusinessactivityandtominimize
financialrisks.
Currencyriskswhicharenotcoveredlocallybyproductionand
procurementinthevariouscountriesandcurrenciesarehedged
usingderivativefinancialinstruments.Financialinvestmentsare
madeexclusivelyinsecuritieswithsolidinvestmentgraderatings.
Risk Report
Risk Management
RiskmanagementatCarlZeissisanimportantcomponentof
value-andperformance-orientedmanagement.Itiscoordinated
fromthecorporatecenterandconsolidatedatGrouplevel.
Operationalandstrategicrisksarecapturedandassessedas
negativevariances.Inaddition,countermeasuresaredefinedfor
allrisksandtheirimplementationisconstantlymonitored.
Themanagementoftheindividualbusinessunitsisresponsible
fortheearlyidentification,communicationandcontrolofrisks.
Riskcoordinatorsinthecompany’sdivisionsensureuniform
reporting.
TheExecutiveBoardofCarlZeissAGconstantlyevaluatesthe
risks,countermeasuresandeffectivenessofthesemeasures.The
ExecutiveBoardalsocontinuallyreviewstheeffectivenessofthe
riskcontrolsystemsandoptimizesthemonanongoingbasis.
TheAuditingCommitteeandtheauditorconfirmtheadequacy
oftheCarlZeissriskmanagementsystemaftercheckingits
structureandfunction.
General Risks
Externalfactorsmayinfluencethefuturedevelopmentofthe
company.Theseinclude,forexample,changesintheglobal
politicalarena,naturaldisasters,pandemicsoracontinuationof
theglobalrecession.
Iftheglobalrecessionalsoreachesthosemarketsthatwere
stablein2008/09,CarlZeissmustexpectafurthernegative
impactonrevenuewhichcannotbefullyoffseteitherbycost
reductionmeasuresorwiththeaidofthebroadbusinessand
productportfolio.Inaddition,thepersistenceoftheglobal
recessionincreasestheriskofinsolvencyforkeysuppliersor
customers,withtheresultingnegativeeffectsonCarlZeissasa
business.
Thegeneraldeclineindemandisintensifyingcompetition,
leadingtopricepressureandincreasedriskstoprofitmargins.
CarlZeisshaslaiddownawrittenCodeofConductwhichis
bindingupontheentireorganization.Employeeshavereceived
comprehensiveinformationaboutitscontent.Thecompanyis
alsoholdingtrainingcoursesonthesubject.TheCodeof
Conductisavailabletothepubliconthecompany'swebsite.
09.30.0909.30.0809.30.0709.30.0609.30.05
11,049 11,249 12,257 13,060 12,872 Total
3,363 3,406 4,292 4,620 4,565 Outside Germany
Employees
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32
InthereportingyeartheComplianceOrganizationwasrestruc-
turedattheGrouplevel.Clearresponsibilitiesandreporting
channelsweredefinedinordertoidentify,evaluateandcounter
risksthroughoutthecompany.
Financial and Liquidity Risks
AsCarlZeiss'fundsalsoincludesuitablecashreservesfor
financinggrowth,thereisnourgentneedforcredit.Therefore,
thecompanyisonlyaffectedbythechangedcredittermsand
morerestrictivebanklendingtoalimitedextent.
Withtwopromissorynoteloansissuedinfiscal2008/09,
CarlZeissunderscoredthatthecompanyisinapositiontorefi-
nanceitsoperationsindependentlyoftraditionalbankloans.
Thankstoitsverygoodratingbyfinancialinstitutions,CarlZeiss
alsosucceededinplacingthepromissorynoteloansdespitethe
difficultenvironmentresultingfromthefinancialmarketcrisis.
CarlZeisshassolidfinancialstructuresandpursuesaconserva-
tive,value-preservinginvestmentstrategy.Investmentsaremade
exclusivelyinsecuritieswithsolidinvestmentgraderatings.
Possiblerisksresultingfromchangesinexchangerates,interest
ratesorthevalueofassetsonthefinancialmarketsarecentrally
quantifiedbyCarlZeissFinancialServicesGmbH,managed
withintheframeworkoffinancialriskmanagementandhedged
inlinewiththedefinedriskstrategy.Allfinancialactivitiesofthe
CarlZeissGroupareconductedonthebasisofcorporate-wide
directives.
Bankswhoseexistenceisunderthreatduetothefinancialcrisis
wereengagedonlytoaminorextentatCarlZeiss.Asaresult,
CarlZeissisnotdirectlyaffectedbythecrashesinthebanking
sector.
Risksmayresultfromacquisitions,strategicalliancesand
investments.CarlZeisscheckstheserisksandminimizesthem
throughanestablishedmerger&acquisitionprocess.Thefocal
pointofthisprocedureisduediligencetesting,inwhichevery
transactionissystematicallyassessedforitsvalueandsynergy
potential.Theintegrationofacquiredcompaniesisconductedin
post-mergerprojectswhichareaimedatrealizingtheexpected
synergypotential.
GoodwillofEUR169millionfromacquisitionsisshowninthe
balancesheetoftheCarlZeissGroupandissubjectedtoregular
impairmenttests.CarlZeisscannotruleoutthepossibilitythat
impairmentsforindividualorallacquiredcompaniesmayprove
tobenecessaryduetochangesintheeconomicconditionsorto
amendmentstothebusinessmodel.
IntheyearunderreviewthebusinessoperationsoftheCarlZeiss
VisionGroupcontinuedtobestablewithavirtuallyconstant
levelofrevenuecomparedtothepreviousyear.Thecurrenthigh
debt-equityratiodominatesthefinancialpositionandresultsof
operationsoftheCarlZeissVisionGroup.Thismayresultinrisks
totheCarlZeissGroup'sinvestment.
CarlZeisshastransferreditspensionobligationstowardactive
employeesinGermanytotheCTAdescribedabove.Trendsinthe
capitalmarketsandinterestratesinfluencethedevelopmentof
theCTA'sassets.TheCTA’sdevelopmentismonitoredthrougha
clear,long-terminvestmentstrategyandpermanentriskcontrol.
Theinvestmentportfolioiscontinuouslyoptimizedandadjusted
tocurrentfinancialmarketconditionswithinthedefined
investmentstrategy.
33
Procurement Risks
TheprocurementrisksconfrontingCarlZeissincludethe
shortageofcommoditiesandenergyoranincreaseintheir
prices.Duetotheeconomiccrisisthereisalsoanincreasedrisk
oflosingsuppliers,throughinsolvency,forexample.Tominimize
theserisks,rigoroussupplychainmeasuresarebeingimple-
mented.Byexpandingasystemforstrategicsuppliermanage-
mentandusingseveralsupplysources,thecompanyreducesthe
riskofdependencyonindividualsuppliers.
CarlZeissisreliantontheavailabilityofitsITinfrastructure.An
externalstrategicpartneroperatesthecompany’sITsystems.
ResponsibilityfortheITstrategyandtherelevantdirectivesand
theirmonitoringlieswithCarlZeiss.Anychangetothecompa-
ny’scollaborationwiththeexternalpartnermayleadtodisrup-
tionsintheoperationalexecutionofITservices.CarlZeiss
addressesthisriskthroughsystematicprojectmanagementand
governancerules.
Personnel Risks
Thedemographictrendisworseningthegeneralshortageof
skilledandmanagementstaff.CarlZeissisalsoaffectedbythis
development.Thecompany'sattractivenessasanemployeris
becomingadecisivefactorinthecompetitionforqualified
personnel.Withtargetedmeasuresandprograms,CarlZeissis
endeavoringtotrainoracquirespecialiststaffandthenbind
themtothecompanyinthelongterm.Inthisway,thecompany
isstillabletomeetitsrequirementsforspecialistandmanage-
mentstaff.
Legal Risks
Overall,thereiscurrentlynopendinglitigationthatcouldpose
anysubstantialdangertoanyareaofthecompanyortothe
CarlZeissGroup.
Protectedpatentsandintellectualpropertyarekeyfactorsfor
CarlZeiss’stechnologyleadandthereforeitscompetitive
position.CarlZeisssafeguardsthesecompetitivefactorsthrough
acomprehensiveindustrialpropertyrightsstrategy.
DuringandafterdevelopmentprocessesCarlZeissalsosystem-
aticallycheckswhetherthepropertyrightsorpatentsofathird
partycouldbeviolated.
Risks for Business Groups
Asasupplierofthesemiconductorindustry,CarlZeissis
subjectedtothetypicalcyclesandvolatilityofthissector.This
resultsinrisksforthebusinessoftheSemiconductorTechnology
Group.Furthermore,alargeproportionofrevenuesisdependent
ononelargecustomerhere.Duringthereportingyearthe
downturnintheindustrywasintensifiedbytheglobalrecession.
Inresponsetothisdevelopment,theSemiconductorTechnology
Groupadapteditscoststructuretothefallinrevenuesandthe
changedmarketconditions.Nevertheless,CarlZeisscontinued
withitstargetedinvestments,e.g.inthefurtherdevelopmentof
thenexttechnologygeneration–EUVlithography–whichhas
yettobecomeestablishedinthemarket.WiththisnewEUV
lithography,thecompanyisexpandingthedevelopmentlead
whichitachievedinrecentyears.Therefore,arapid,unexpected
shifttoadifferentmicrochipproductiontechnologycouldhave
anegativeimpactonthisbusinessgroup.
OUR INSP IRAT ION FOREWORD MANAGEMENT REPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS R ISK REPORT
34
Liketheotherbusinessgroups,MedicalSystemsisaffectedby
theglobaleconomyandtherecession,althoughtoalesser
extentandstartingatalatertime.Inphasesofeconomic
weakness,customersmayreactbycurbingand/orpostponing
theirinvestmentsintonewandinnovativeproducts.
Innovativenessandrapidproductdevelopmentarekeycompeti-
tivefactorsintheMedicalSystemsGroup.Itssuccesstherefore
alsodependsontherapiddevelopmentofinnovativeand
marketableproductsandontheearlyrecognitionandimplemen-
tationofnewtechnologytrendsintheformofnewproducts.In
manycountriesmedicaltechnologyproductsrequireofficial
approvalorcertification.Althoughtherelevantlegalrequire-
mentsareincorporatedinallstagesofdevelopment,production
anddistribution,therecanbenoguaranteethatapprovalswill
begrantedatallorattherighttime.Furtherrisksmayresult
fromhealthcarereformsandtheassociatedcostreductions.
Ontheotherhand,macrofactorssuchastheincreasingworld
populationandthedemographictrendinindustrializedcountries
offergoodgrowthoptions.Economicdevelopmentsinthe
emergingeconomies,aswellastheincreasingdemandsbeing
madeonthemedicaldevicesusedforthediagnosisandtherapy
ofage-relateddiseases,areprovidinggrowthopportunitiesto
thebusinessgroup.
Governmentbudgetrestrictionsmayinfluencethebusinessof
theMicroscopyGroup–when,forexample,stimuluspackages
focusedspecificallyonpromotingeducationandresearchinthe
fieldsofbiotechnologyandthelifesciencesexpire.Afurtherrisk
factorforMicroscopyisexchangeratefluctuations–fromwhich
AsianandUScompetitorsinparticularmaybenefit.Theglobal
economiccrisishasledtoadecreaseinsalesofmicroscopesfor
industrialapplications.Ifthissituationcontinuesunchanged,it
mayleadtoafurtherdownturninrevenuesinthissegment,
whichwillbeincreasinglydifficulttooffsetthroughbusiness
withresearchsystems.
Thegeneraltrendinthecapitalgoodsindustry–andinthe
automotiveandsupplyindustryinparticular–isoneoftherisks
facingtheIndustrialMetrologyGroup:ifdemanddoesnot
recoveronthesemarkets,afurtherdeteriorationinrevenuesis
possible.Byexpandingitsproductportfolio,thebusinessgroup
isopeningupnewcustomersegmentsinordertoreduceits
dependencyonindividualindustries,e.g.theplasticsand
consumergoodsindustries,inwhichmultisensorsystemsor
computertomographycanbeused.Inaddition,thebusiness
groupisconstantlyexpandingtheservicesitofferstoits
customers.
Dependenceongovernmentbudgetsandthelongdurationof
projectsaretypicalfeaturesofthebusinesswithsecurityand
defensesystems.TheOptronicsDivisionofCarlZeissaddresses
theserisksthroughoptimizedapproachestoproject,inventory
andsupplychainmanagement.
OneriskareafortheCameraLensDivisionisthemovieindustry
whichiscuttingorcompletelycancelingitsbudgetsinresponse
totherecession.Thisisleadingtoafallinthedemandforcine
lenses.Inaddition,theswitchfromanalogtodigitaltechnology
isresultinginincreasedcompetitivepressurefromnewplayers.A
fallinthedemandforconsumerelectronicssuchascellphones
ordigitalcamerasmayhaveanegativeeffectonthesuccessof
thedivision’slicensebusiness.
MANAGEMENT REPORT R I SK REPORT
35
RisksfortheSportsOpticsDivisionare,aboveall,thereduced
consumerconfidenceevidentintheUSAandthestrong
competitiveandpricepressure.CarlZeissisaddressingthese
riskswithaninnovativeproductportfolio.
Businesswithplanetariumsisoftendependentongovernment
budgetsorprivatedonations.Iftheglobaleconomiccrisis
continues,thereisariskthatbudgetswillbereducedor
cancelledandplanetariumconstructionprojectswillnotbe
implemented.
Overall Risk Situation
Asaresultoftheinitiatedandplannedmeasures,noindividual
risksarediscerniblethat,onthebasisoftheinformation
availabletothecompanyatthetimewhenthisreportwas
compiled,couldsignificantlyjeopardizethenetassets,financial
positionandresultsofoperationsoftheCarlZeissGroupinthe
nearfuture.However,thereisariskthattheglobalrecessionwill
continuetonegativelyinfluencethecompany’sprofitability.
Outlook
Global Economic Expectations
Afterasignificantslowdownintheeconomyin2008/09,there
arenowinitialsignsofacautiousrecoveryin2010.Individual
CarlZeissbusinessgroupsarebenefitingtovaryingdegreesfrom
theexpansionofgovernmentinvestmentstakingplaceinmany
countries.Asin2009,thebusinessgroupswillbeimpactedto
varyingextentsbyeconomicdevelopments.Duetothecontinu-
ingglobaleconomiccrisisandthetensesituationonthe
financialmarkets,forecastsforthecomingfiscalyearsarestill
subjecttoahighdegreeofuncertainty.
Market Forecasts
Inthesemiconductormarketthedownturnappearstohave
bottomedout:fromfiscalyear2009/10,CarlZeissexpectsa
significantmarketrecovery,withdemandfocusedprimarilyon
productsofthelatesttechnologygeneration.
CarlZeissanticipatesalargelystablebusinesstrendinthe
MedicalSystemsGroup.However,theimpactoftheglobal
economiccrisismaytemporarilyreducecustomers'willingness
andabilitytoinvest.Inthemid-term,CarlZeissexpectsthe
businesstogrowconsiderablysincetheunderlyingmacro-trends
haveremainedunchanged.Thesemacro-trendsincludethe
agingpopulation,improvedhealthcareinnewlyindustrialized
countries,andthepersonalinvestmentsbeingmadebyindividu-
alstoimprovetheirqualityoflife.
CarlZeissexpectsgovernmentstimuluspackages,particularlyin
theUSA,toboostitsMicroscopybusinessatthebeginningof
thefiscalyear.Thecompanyassumesthatgovernmentand
researchbudgetswillremainalmoststableforthetimebeing.
Averysubduedtrendisstillevidentinthematerialsmicroscopy
market.
CarlZeissassumesthatdemandinthecapitalgoodsindustrywill
remainatalowlevelforthetimebeing.Thecompanydoesnot
predictanypositiveeffectsontheIndustrialMetrologybusiness
beforemid-2010.
CarlZeissseesfurthergrowthinthesecuritytechnologymarket,
whilethebusinessoftheSportsOpticsDivisionwillbemarked
byincreasingcompetitionandpricepressure.
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36
Thecompanyexpectsthat,despitethedifficulteconomic
scenario,thedemandforcameraandcinelenseswilllargely
remainstable.Thecompanyanticipatesadownturninthe
licensebusinessoftheCameraLensDivision.
Development of the Carl Zeiss Group
DespitethedifficulteconomicconditionstheCarlZeissGroup
seesfurtheropportunitiesforgrowthinthecomingfiscalyears,
asthemaingrowthdriversremainunchanged.Initialrecoveryis
alreadyevidentinthechipindustry.Alargenumberofnew
productsfromtheCarlZeissGroupwillincreasecompetitiveness
andensurefurthergrowthin2010.
Aftertheeconomicallydifficult2008/09fiscalyear,weexpectan
improvementintheeconomicsituationoftheCarlZeissGroupin
thefollowingyear.IntheSemiconductorTechnologyGroup
revenues,whichsufferedacyclicaldeteriorationfurtherintensi-
fiedbythegeneralrecession,willrecoverthroughgrowingsales
volume.Duetothecurrentuncertainoutlookfortheautomotive
andmechanicalengineeringsectorsnomajorstimuliforgrowth
canyetbediscernedfortheIndustrialMetrologyGroup.Inthe
company’sestimation,theMedicalSystems,Microscopyand
ConsumerOptics/OptronicsGroupswillstrengthentheCarlZeiss
Group’seconomicpositionwithastablevolumeofsales.
Opportunitiesmayemergeforthesebusinessgroupsinparticular
asaresultofgovernmentstimulusandaidprogramsforthe
educationsectorandtargetedinfrastructuredevelopmentsinthe
fieldsofresearchandhealthcare.ThisappliestoGermany,the
USAandAsia,inparticulartothegrowthmarketChina.
TheCarlZeissGroupexpectstograduallymakeupforthe
downturninsalesvolumeandrevenuesrecordedduringthe
reportingperiodinthecomingfiscalyears.Asaresult,the
companypredictsaslightlypositiveearningssituationinthe
comingfiscalyear.TheCarlZeissGroupwillregainitsprofitability
ofpreviousyearsinthefollowingyears.
Events after the End of the Fiscal Year
TheManagementandSupervisoryBoardsofCarlZeissMeditecAG
proposethepaymentofadividendofEUR14.6million
(EUR0.18perstock).Theshareofaround35percentaccruingto
minorityshareholdersofCarlZeissMeditecAGwillreducethe
equityoftheCarlZeissGroupaccordingly.Theannualgeneral
meetingforfiscalyear2008/09hasyettoapprovethisproposal.
CarlZeissVision'scorporateresultin2008/09hasledtoa
technicaldefaultrelatingtotheancillaryconditionsofthecredit
agreements.Basedonabusinessreviewbyanindependent
thirdparty,CarlZeissVisioniscurrentlyinnegotiationswith
bankstorestructureitsfinancesandarrangeanappropriate
standstillagreement.Thetwoshareholdersofthecompany,
CarlZeissAGandtheprivateequitycompanyEQT,areinvolved
inthenegotiations.
MANAGEMENT REPORT EVENTS AFTER THE ENDOF THE F I SCAL YEAR
37
38
Medical and Research Solutions
Thepopulationaroundtheworldisaging,andthepercentage
ofelderlypeopleisincreasingrapidly.Doctorsandpatients
relyonstate-of-the-artdiagnosticandtherapyproductsthat
providetherequiredassistancetocombatimpairmentsinboth
healthandthequalityoflife.Thepharmaceuticalindustryand
thelifesciencesareworkingintensivelytodiscoverthedrugs
andtreatmentmethodsoftomorrow–researchersdependon
high-performancemicroscopesandimagingprocedurestomake
thishappen.Theincreasingexpectationsnowbeingmadeon
modernmedicaltechnologyandleading-edgeresearchsystems
offergooddevelopmentprospectsforCarlZeiss.
Markets of the Future
Withtrendsettinginnovations,CarlZeissdrivesglobalprogressinopticsandoptoelectronics.Thecompanyfocusesonmarketsthatoffersustainedpotentialforgrowth:MedicalandResearchSolutions,IndustrialSolutionsandLifestyleProducts.
39
Industrial Solutions
Digitization,automationandnanotechnologiesaredriving
industrialdevelopment.GloballyleadingopticsfromCarlZeiss
providethefoundationfortheproductionofhigh-performance
microchipswithhighlycomplexnanostructures,whichare
indispensablefortheinformationsocietyoftodayandtomor-
row.Withproductsandintegratedsolutionsformeasuring,
analyticalandsecuritytechnologyaswellasforindustrial
production,CarlZeissoffersoptimalsolutionsandsetstechno-
logicalstandardsthatexpandthespectrumfarbeyondour
powersofimaginationandcurrentconceptionsofprecision.
Lifestyle Products
Formorethan160years,CarlZeisshasbeenapioneerin
technologiesthatopenupnewdimensionsofperception.
ZEISSproductsenablemillionsofpeopletoseeandexperience
theworldintotallydifferentwayseveryday.Inmanyplane-
tariumsaroundtheglobe,ZEISSplanetariumprojectorsmagi-
callyrecreatetheworldofstarsonthedomesandfascinate
audienceswithunforgettableinsightsintothesecretsofthe
universe.ZEISScinelensesareusedtofilmHollywoodmovies
thatthrillaudienceswiththeirbrilliantimages.Thecinemizer
videogogglesenablemobilecinemaforthefirsttime.Lenses
forcamerasandmobileradiodevices,binocularsandspotting
scopesfromCarlZeissenrichlifewithZEISSquality.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS MARKETS OF THE FUTURE
40
BusinessGroupSemiconductor Technology
Duringfiscalyear2008/09,theSemiconductorTechnologyGroupgeneratedrevenuesofEUR386million.Duetothegeneraldownturninthesemiconductorindustry,businesswithlithographyopticswasfarbelowthelevelreportedlastyear.However,businesswithscanningelectronmicroscopesremainedstable.
“WearepleasedtoworkwiththeZEISSphotomaskrepairtoolwhichisbasedonelectronbeamtechnology.Ithasenableddrasticyieldenhancementforusaskeytowinmarketshareinseverecompetition.”
Shingo Kanamitsu, Research Scientist, Advanced Lithography Process Development, Toshiba Corporation Semiconductor Company, Japan
41
Sales revenues
(EURmill)
2008/09 386
2007/08 1,018
2006/07 1,042
2005/06 864
2004/05 658
Employees
(Full-timeequivalents)
30SEP2009 2,530
30SEP2008 2,670
30SEP2007 2,496
30SEP2006 2,199
30SEP2005 1,977
TheSemiconductorTechnologyGroupconcludedthefiscalyear
withacleardecreaseinsalesof62percentandgenerated
revenuestotalingEUR386million(lastyear:EUR1,018million).
Themassivedownturninthesemiconductorindustrythat
alreadybeganinthesummerof2008wasworsenedbythe
globaleconomiccrisis:chipmanufacturersbarelyinvestedin
productionequipmentduringthereportingyear.Thisleftits
markonincomingbusinessandsalesrevenuesoftheSemicon-
ductorTechnologyGroup.
Thebusinessgroupreactedtothemajorchallengesposedbythe
changedconditionswithoutlosingsightofitsmid-termgoals:
usewasmadeofflexibleHRtools–suchasthereductionofthe
timeaccruedinflextimeaccounts,ashorterworkingweek,the
loanofmanpowerfromotherareasoftheCarlZeissGroupand
short-timeworking.Inaddition,thebusinessgroupachieved
asustainableoptimizationinitscoststructureandproduction
processesandimplementedaconsistentcost-cuttingprogram.
Investmentsinresearchanddevelopmentremainedatahigh
level.
New Technology on the Verge of Volume Production
Inthereportingyear,CarlZeisscontinuedtodrivethedevelop-
mentofextremeultravioletlithography(EUV).Thisnew
technologyformicrochipproductionenablesstructuresinthe
20nanometerrange–forevensmaller,evenmorepowerful
chipsandaclearreductioninproductioncosts.
Overall,theLithographyOpticsDivisionoftheSemiconductor
TechnologyGrouphasbeenworkingonthedevelopmentofEUV
lithographyforabout15yearsandhasinvestedatotalofEUR
100milliontodate.Thetechnologywasfundedwithasumof
overEUR20millionbytheGermanFederalMinistryofEducation
andResearchandataEuropeanlevel.
AttheendoftheyearunderreviewthegroupsuppliedASML
withthefirstopticscomprisingbothilluminationandprojection
forEUVlithography.TheDutchcompanyistheleadingmanufac-
turerofopticallithographysystems.CarlZeissisitssolesupplier
oflithographyoptics.TwoEUVsystemsforprocessdevelopment
arecurrentlyinoperationaroundtheglobe.Theinstallationof
thefirstproductionsystematamicroscopemanufactureris
scheduledforthesecondhalfof2010.Theuseofthetechnol-
ogyforthevolumeproductionofmicrochipsisthereforedraw-
ingcloser:CarlZeisshascurrentlyreceivedaroundtenordersfor
theEUVsystems.
Numerous Awards for High Performance Microscopes
Infiscalyear2008/09theNanoTechnologySystemsDivision
expandeditsproductportfolioandlaunchedanewscanning
electronmicroscopeandanewCrossBeam®system.Thedivision
isthereforeexpandingitspositionasatechnologyleader.During
thedevelopmentofthenewsystem,specialattentionwas
giventoprovidingsimple,convenientuserguidance.Numerous
awardsreceivedforhighperformancemicroscopesofthe
SemiconductorTechnologyGroupunderscoretheoutstanding
performanceofthesystems.
Joint Development with Customers
CarlZeisshascontinuallyenhancedtheORION®helium-ion
microscopelaunchedin2007.ORION®deliversthreetofour
timeshigherresolution,greaterdepthoffieldandclearlybetter
contrastthanscanningelectronmicroscopes.Tooptimallyuse
thisperformance,CarlZeissisdrivingapplicationdevelopment
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS SEMICONDUCTORTECHNOLOGY
42
BusinessGroupSemiconductor Technology
Carl Zeiss develops high performance optics used for microchip production.
43
togetherwithpilotcustomers–formaterialexaminationsin
semiconductortechnologyorinbiomedicalresearch,for
example.
Brain Mapping
Duringthereportingyear,CarlZeisspresentedanewapplication
forbrainresearch:brain mapping.Withhighresolution,
electron-microscopicimages,thissolutionprovidesresearchers
withathree-dimensionalviewofthestructuresandconnections
ofthesynapsesinthebrain.Inthisway,scientistsaimtoobtain
informationaboutdiseasessuchasautismorschizophreniaand
abouttheeffectofdrugs.In2009CarlZeisspresentedanew
softwaresolutionandspecialdetectorsystemsforthispurpose,
whicharenowalreadyinuseatcustomers.
Optimizing Interfaces: Correlative Microscopy
DuringthereportingyeartheMicroscopyandSemiconductor
TechnologyGroupspresentedajointdevelopment:correlative
microscopyformaterialsanalysis.Aspecialspecimenholderand
anewsoftwarepackagecombinelightmicroscopyandscanning
electronmicroscopy.Inthisway,specificareasofthespecimen
canbeautomaticallyrelocatedandanalyzedunderthelightand
electronmicroscopes.ThismakesCarlZeisstheonlycompanyin
theworldtooffersuchaworkflowfromasinglesource.
Expansion of Technology Leadership
TheSemiconductorMetrologySystemsDivisionsawamarked
recoveryinthereportingyear.Despitethegeneraldownturnin
thesemiconductorindustry,revenuesinthisdivisionshoweda
favorabledevelopment.Semiconductorandmaskmanufacturers
areinvestinginproductsfortheinspection,repairandoptimiza-
tionofphotomasksforsemiconductorproduction.Attheend
ofthefiscalyearthedivisionfelttheeffectsoftheslowrecovery
takingplaceinthesemiconductormarketinAsiaatanearly
stage.
Inaddition,theproductsdevelopedforthefabricationof
photomasksofthe32nanometernodewereverywellreceived
bythemarket.CarlZeissdeliveredthefirstAIMS™ 32-193i
systemsformaskinspectionandMeRiT® HR32systemsfor
photomaskrepairtotheUSAandJapan.Furthersystemswill
enterservicein2010.
PixerTechnology,acompanybasedinKarmiel,Israel,and
acquiredin2008,wassuccessfullyintegratedandexpandsthe
productportfoliowithphotomaskoptimizationsystems.
Laser Optics Expands Product Portfolio
TheSemiconductorTechnologyGroupalsoincludestheLaser
OpticsDivisionwhichproducescomponentsforlasersusedas
lightsourcesinlithography,andopticsforautomatedwafer
inspection.
Thedownturninthesemiconductorindustryalsoimpactedthe
division’sbusiness.Inthesecondhalfofthereportingperiod,
CarlZeissnotedaslightrecoveryinbusiness.Inparticular,the
demandforlasersparepartsstabilized.Thisbusinessisakey
sourceofrevenueforthedivision.Inaddition,CarlZeissinitiated
newproductdevelopmentprojectstogetherwithkeycustomers
andisthereforeconstantlyexpandingtheproductofferingof
theLaserOpticsDivision.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS SEMICONDUCTORTECHNOLOGY
44
BusinessGroupMedical Systems
“Mypatientsentrustmewiththeirvision.IbringsurgicalexpertiseandlooktoZEISStoprovideprecision,reliabilityandinnovationintheequipmentthatallowsmetodeliverresults.”
Dr. Patrick Versace, Medical Director of Vision Eye Institute, Sydney, Australia
Infiscalyear2008/09theMedicalSystemsGroupdevelopedpositivelyinachallengingenvironment.RevenuesincreasedtoEUR706million.Thebusinessgroup'sactivitiesarelargelybundledundertheumbrellaoftheTecDAX-listedcompanyCarlZeissMeditecAG.CarlZeissAGholdsa65percentinterestinthecompany.
45
Sales revenues*
(EURmill)
2008/09 706
2007/08 661
2006/07 638
2005/06 631
2004/05 552
Employees*
(Full-timeequivalents)
30SEP2009 2,785
30SEP2008 2,759
30SEP2007 2,467
30SEP2006 2,274
30SEP2005 2,177
TheMedicalSystemsGroupconcludedthefiscalyearwithan
increaseinsalesofsevenpercentandgeneratedrevenues
totalingEUR706million(lastyear:EUR661million).
TheAsia/Pacificregionreportedthehighestgrowthinfiscal
year2008/2009.
TheMedicalSystemsGroupactsinaccordancewiththethree
principlesofPrecision,SimplicityandOutcomes.
Precision: The Ultimate in Accuracy for Exact Diagnosis
and Therapy
CarlZeisssupportsdoctorsandsurgeonswithmedicalsystems
thatfunctionwiththeutmostprecisionandvisualizeeventhe
smalleststructures.
WiththeCirrus™ HD-OCT,theMedicalSystemsGroupoffersa
high-resolutioncoherencetomographysystemthatgenerates
imagesoftheretinaandotherstructuresoftheeyedowntothe
micrometerrange.Thisextremelyhighprecisionenhancesthe
diagnosisofdiseasesandimprovestheplanningandfollow-up
ofsurgicalprocedures.CarlZeissintroducedOpticalCoherence
Technology(OCT)tothemarketin1995.
LastfiscalyearthebusinessgrouplaunchedaRetina Worksta-
tion.ThiscombinestheCirrus™ HD-OCTcoherencetomography
systemswiththeVISUCAMNM/FAfunduscameraandtheFORUM®
datamanagementsolutiontoprovideacompleteretinasolution.
MaximumprecisionisalsoofferedbyCarlZeisssurgicalmicro-
scopes.WiththeintroductionofStereoCoaxialIllumination(SCI)
technologyfortheOPMI Lumera®,surgeonscanvisualizedetails
intheeyethatcouldnotberecognizedinthepast.Theproduct
seriesissupplementedwiththeOPMI Lumera®700andthe
RESIGHTfundusimagingsystemthatcanimagetheeyewith
maximumdetail.
WiththeOPMI® Pentero®,CarlZeissoffersahighlyprecise
surgicalmicroscopeforneurosurgerythat,togetherwiththe
additionalBLUE 400module,enablesasafe,gentleandefficient
surgicaltechnique.BLUE 400makesthemarginsofamalignant
tumorvisible,allowingclearerdifferentiationfromhealthytissue
andmoreexacttreatmentbythesurgeon.
Simplicity: User-friendliness in Focus
Tobesuccessfulinthefieldofmedicaltechnology,theincreas-
inglycomplexsystemsmustbedesignedtobeuser-friendly.
Optimalnetworkingwithexaminationandtherapysystems
decreasestheeffortrequiredfordatamanagementsothat
doctorscanconcentrateontheirworkonpatients.Recent
decadeshaveseenastrongincreaseinthenumberofIT-assisted
examinationandtherapysystems.
Tomanagelargequantitiesofdiagnosticdataineverydayoffice
andhospitalwork,doctorsneedsimplesolutionstoensure
optimaluseandarchivingoftheinformationprovided.With
FORUM®,theMedicalSystemsGrouplaunchedahighlymodern
imageandreportmanagementsystemthatensuressmooth
processesandoptimizedworkflows.ThankstoDICOMstandard,
connectiontoexistingexaminationandmanagementsystems
(electronicmedicalrecordsystems)ispossible.Inthisway,
*ThevaluesdeviatefromthepublishedfiguresofCarlZeissMeditecAGasa
resultofdifferentconsolidationmodels.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS MEDICAL SYSTEMS
46
BusinessGroupMedical Systems
Thanks to its innovative illumination system, the OPMI Lumera® surgical microscope makes even the finest structures in the eye visible.
47
patientmasterdataandexaminationworklistscanbetrans-
ferredquicklyandsimplyfromtheelectronicmedicalrecordto,
forexample,theIOLMaster®foreyemeasurement,the
Cirrus™ HD-OCTopticalcoherencetomographysystemorthe
CALLISTO®eyeORmanagementsystem.
ThroughfurtherdevelopmentoftheOPMI®Pentero®surgical
microscope,neurosurgeonsreceiveexcellentsupportfor
complexproceduressuchasaneurysmsurgery:forthissystem,
additional,clinicallyrelevantfunctionsarebeingconstantly
developed,e.g.theINFRARED 800module.Thisincorporatesthe
fluorescencemethodand,atthepushofabutton,visualizes
bloodflowwithgreaterprecisionduringvascularbrainsurgery.
Outcomes: A Key Measure of Success
CarlZeissseestheoutcomeoftherapyasakeyindicatorofthe
efficacyofourproducts.ThisisthereasonwhytheMedical
SystemsGroupconstantlydevelopsclinicalsolutionsthathelp
doctorsachieveoptimaldiagnosticandtreatmentoutcomes.
Thebusinessgroupoffersitsclientsthebestpossiblesupport
fordiagnosisandtherapyand,thankstoitshighperformance
productsandtailor-madesolutions,ensuresabalancedcost-
benefitratio.WithAT LISA,themedicaltechnologywingof
CarlZeissoffersanartificialmultifocalintraocularlensthatisused
forhighprescriptionsandincataractsurgery.Thenewgenera-
tionoftheseartificiallensesprovidespatientswithfullvisual
acuityaftersurgery,enablingthemtoreadordriveduringthe
dayandatnightwithouttheneedforanyadditionalvisualaids.
AfurtherinnovationintheMedicalSystemsGroup’sproduct
portfolioisthenewVisuMax®femtosecondlasersystem.It
enablesdoctorstoperformfaster,moreexactandtherefore
gentlersurgeryonthehumaneye.
A Look at the Future
Despitetheincreasinglydifficulteconomicscenario,alsoforthe
MedicalSystemsGroup,andthecost-containmentmeasures
implementedinthehealthcaresector,thebusinessgroupseesa
positivedevelopmentinthedemandforCarlZeissdiagnosticand
therapysystems.Thisislargelyattributabletobasicunderlying
trendssuchastheconstantincreaseintheageoftheworld
population.Thisappliestobothophthalmologyandmicrosur-
geryandcreatesfavorablesellingconditionsfortheproducts.
CarlZeissanticipatesastablebusinesstrendintheMedical
SystemsGroup.However,theimpactoftheuncertaineconomic
developmentmaytemporarilyreducecustomers'willingnessto
invest.Theprimarygoalofthebusinessgroupissustained,
long-termvalueenhancementthroughgrowth.
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48
TheMicroscopyGroupconcludedfiscalyear2008/09withaconsiderableincreaseinrevenues.Withsuperresolutionlightmicroscopy,CarlZeississettingnewstandardsandunderscoringitsleadingroleinthefieldofmicroscopyanditsinnovativestrength.
BusinessGroupMicroscopy
“Recentlyweacquiredamicroscopysystem.ZEISScustomerserviceandsupporthavefarexceededourexpectations.Weareveryexcitedtohavethenewsystemandarealsodelightedtohaveahighlytrainedgroupofprofessionalstoprovideservice,trainingandadvice.Keepupthegoodwork!”
Shawn Williams, Manager High Resolution Imaging Facility, University of Alabama, Birmingham, USA
49
Duringfiscalyear2008/09,theMicroscopyGroupgenerated
revenuestotalingEUR365million,agrowthofeightpercent
overthepreviousyear(EUR339million).
Aparticularlypositivetrendwasreportedforbusinesswith
microscopesandsolutionsforresearchapplications.The
businessgroupgrewinallregions:theCarlZeissMicroscopy
GroupwasparticularlysuccessfulinAsiaandwonadditional
marketshare.
Infiscalyear2008/09thebusinessgroupfurtherexpandedits
productofferinginthemidandlowerpricesegments.Asa
result,CarlZeissnowcoverstheentirespectrumofmicroscopy:
inadditiontohigh-endsystemsusedinbiomedicalresearch,
thecompanyalsoofferssimplemicroscopesforroutinetasksor
forschoolanduniversitystudents.
Expanded Portfolio for Industrial Applications
Fiscalyear2008/09sawaslightdropinsalesofmicroscopesand
softwaresolutionsforindustrialapplicationsasmanycustomers
postponedtheirinvestmentsduetotheconditionsintheglobal
economy.
DuringtheyearunderreviewCarlZeissinvestedintheexpansion
andoptimizationoftheproductportfolioforindustrialapplica-
tions:newanalyticalcapabilitiesarerequiredinmaterials
researchandindustrialqualityinspectiontokeeppacewiththe
ongoingdevelopmentofmaterials.InDecember2008CarlZeiss
launchedtheLSM 700/matlaserscanningmicroscope.This
versatilemicroscopesystemallowstheexaminationofawide
varietyofmaterialswithmaximumresolution–suchassemicon-
ductors,metal,glass,polymersandplastics–whicharebeing
increasinglyusedinautomotiveconstruction,theaerospace
industryandinthemedicalsector.
Combining Light and Electron Microscopy
InApril2009,togetherwiththeSemiconductorTechnology
Group,whichalsodevelopsanddistributesscanningelectron
microscopes,theMicroscopyGrouppresentedcorrelative
microscopy:aspecialspecimenholderandanewsoftware
packagenowcombinelightmicroscopywithscanningelectron
microscopy.Inthisway,specificareasofthespecimencanbe
automaticallyrelocatedandanalyzedunderthelightand
electronmicroscopes.ThisShuttle & Findsolutionprovidesnew
analyticalcapabilitiesformaterialsanalysisinresearchandfor
manyroutineapplicationsintheindustrialenvironment.With
thisnewproduct,CarlZeissisunderscoringitsleadingposition
inthefieldofmaterialsmicroscopy.
Key Contribution to Biomedical Research
Allovertheworld,researchersarefocusingtheirworkon
understandingthecausesofcancerorcardiovascularanddegen-
erativedisorders.Theirresearchisaimedatimprovingdiagnosis
anddevelopingeffectivetherapies.MicroscopesfromCarlZeiss
makeanimportantcontributiontothisprocess:theyalso
providedeepinsightsintolivingcells.Observingtheinteraction
ofdifferentcellcomponentshelpsprovideabetterunderstand-
ingofprocessesandreactionsinthetissue.
Averypositivetrendwasreportedforbusinesswithmicroscope
solutionsforresearchapplications.CarlZeissalsofeltthe
favorableimpactofnationalstimuluspackagesforthepromo-
tionofresearch.TheLSM 700andtheLSM 7MPwereparticu-
larlysuccessfulonthemarket.TheLSM 700isextremelyflexible:
Sales revenues
(EURmill)
2008/09 365
2007/08 339
2006/07 323
2005/06 340
2004/05 299
Employees
(Full-timeequivalents)
30SEP2009 1,677
30SEP2008 1,731
30SEP2007 1,758
30SEP2006 1,562
30SEP2005 1,617
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS MICROSCOPY
50
BusinessGroupMicroscopy
Deep insights into living cells: microscopes allow researchers to gain new knowledge into the causes of diseases and develop new approaches to therapy.
51
itsfieldsofapplicationextendfromsimpleroutineexaminations
tomultidimensionalphotosinbiomedicalresearch.TheLSM 7MP
laserscanningmicroscope,whichdelivershighresolutionmicro-
scopeimages,canbeusedformanydifferentexperimentsin
basicresearch.
Examining Developments in Living Cells
Alzheimer’s,forexample–adiseaseinwhichmentalfunctions
suchasmemoryororientationarelost–cancurrentlyonlybe
reliablydiagnosedatanadvancedstage.Scientistsareresearch-
ingintothecausesofthedisorderandareseekinganswersto
thequestions"WhattriggersAlzheimer's?"or"Whatgenetic
changestakeplaceinthebodybeforethediseasebreaksout?".
Untilnow,itisknownhowtissuechangeswhenthediseasehas
actuallyerupted.ResearcherscanusetheLSM 710 NLOlaser
scanningmicroscopefromCarlZeisstoexamineprocessesand
developmentsinlivingorgansandcells.Thismakesitpossibleto
identifychangesthatarepotentialcausesofthedisease.
Thediscovererofthedisease–theneurologistAloisAlzheimer
–conductedhisresearchwithmicroscopesfromCarlZeiss.In
1907,hewasthefirsttodescribethesymptomsofthedisease.
Actively Supporting Cancer Research
AccordingtoforecastsoftheWorldHealthOrganization(WHO),
cancerwillsoonbetheworld'smostfrequentcauseofdeath.
Scientistsaroundtheglobeareendeavoringtoinvestigatethe
mechanismsbehindtheoccurrenceofthediseaseandidentify
possibleriskfactors.Forabouttwoyearsnow,CarlZeisshas
beensupportingtheresearchworkoftheGermanCancer
ResearchCenter(DKFZ)inHeidelbergandoperatinganapplica-
tioncenterinthefacility.Researchersuselightandstereo
microscopesaswellasalaserscanningmicroscopefrom
CarlZeiss,andanalyzecomplexdynamiccellprocesses.
LightmicroscopesystemssuchastheCell Observer®playan
importantrolehere:rapidchangesincellsandcellstructuresin
severaldimensionscanbeobserved,analyzedanddocumented.
Scientistsusetheresultsobtainedintheseexaminationsto
developnewapproachesfortheprevention,diagnosisand
treatmentofcancer.
Super Resolution for More Insight and Understanding
Withsuperresolutionlightmicroscopy,CarlZeisshassetanew
milestoneinmicroscopy.Duringthereportingyearthecompany
deliveredthefirstmicroscopestocustomerswhohaveshown
particularinterestinsuperresolutionandareusingandtesting
thesystemspriortotheintroductionofserialsystems.CarlZeiss
offeredtheseearlyadoptersanextensiveservicepackage.This
includedprofessionalapplicationsupportandaworkshopduring
whichtheycandiscusstheirexperienceswiththesystem.The
customersprovidedCarlZeisswithalargeamountofinforma-
tionforfurtherdevelopmentofthesystemtothepointof
volumeproduction.
Withsuperresolutionmicroscopy,whichdeliversresolutionten
timeshigherthanthatofstandardmicroscopes,researcherscan
observethepositionofmoleculesinthenanometerrange,for
example.Thisyieldsnewpossibilitiesforidentifyingandbetter
understandinginteractionsincellstructures.
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52
BusinessGroupIndustrial Metrology
TheIndustrialMetrologyGroupconcludedfiscalyear2008/09withrevenuestotalingEUR304million.Theimpactoftheglobalrecessionandthedecliningdemandinthemechanicalengineeringsectorwereclearlyfeltinthisbusinessgroup.
“LikeCarlZeiss,ourbrandstandsforexcellentqualityandmaximumprecision.Onthiscommonbasisweworktogetherverysuccessfullyandachieveoptimalresults.”
Thomas Schäfer, Quality Manager, IWC Schaffhausen, Branch of Richemont International SA, Switzerland
53
ThemeasuringtechnologywingofCarlZeissgotofftoapositive
startinfiscalyear2008/09.Inthefallandwinterof2008
customersstillinvestedveryheavilyinnewmachines.Fromthe
secondquarterofthefiscalyear,therewasasharpdropin
demand,butthegroupwasabletobenefitfromitslargevolume
ofunfilledorders.Overall,theIndustrialMetrologyGroup
generatedrevenuesofEUR304millioninthereportingyear,
correspondingtoadeclineof19percentoverthepreviousyear
(EUR374million).
Thegrouphadalreadyachievedaconstantimprovementinits
processesduringthepreviousfiscalyears.Withadditional
optimizationofitscoststructure,areductioninthetimeaccrued
inflextimeaccountsanduseofthepossibilitiesofferedbya
shorterworkingweek,thegroupsuccessfullycounteredthe
globalrecessionandthedownturnindemand.Thestabilityof
theservicebusiness,whichthegrouphassetupandestablished
inrecentyears,madeamajorcontributiontothisachievement.
Continuity and Dynamism in One
Infiscalyear2008/09theCarlZeissIndustrialMetrologyGroup
celebratedits90thanniversaryandpresentedmanynewsolutions
atControl2009,theindustry’sleadingshow.Thecompany
communicatedaclearmessagetothemarket:measuring
technologyfromCarlZeisshasstoodforprecisionandquality
for90years.However,thecompanyisnotrestingonitslaurels
bysimplypridingitselfonitspastsuccessandachievements:
itconstantlyworksonthedevelopmentofnewandbettermeas-
uringsolutions.Inthisway,theIndustrialMetrologyGroup
combinestrust,continuityandtraditionwithdynamismand
innovation.
Three Strategic Pillars as the Basis of Success
Thisbusinessgroup’sbusinessissustainedbythreestrategic
pillars:internationalorientation,aninnovativeportfolioand
constantexpansionofthesolutionandserviceofferings.
International Orientation for More Independence
CarlZeissoperatesmanufacturingfacilitiesforindustrial
measuringtechnologyinGermany(Oberkochen),theUSA
(Minneapolis)andChina(Shanghai).Withitsinternational
productionsites,aglobalnetworkofserviceengineersandits
ownmeasuringhousesaroundtheworld,theIndustrial
MetrologyGroupisalwaysclosetoitscustomers.Theresulting
greaterindependencefromexchangeratesisafurtheradvan-
tageofthisinternationalorientation.
Measuring Up Every Time
OneoftheproductspresentedbyCarlZeissinthereportingyear
wasthenewlydevelopedACCURA®3Dcoordinatemeasuring
machine.Themultisensormeasuringsystemhasamodular
structure:ifrequirementsgrow,theACCURA® growswiththem.
Inthisway,customerscanconfiguretheirownpersonal
measuringmachineandmatchittotherespectivetaskandto
theavailablebudget.
Environmentally and Health Friendly Materials
ThenewMETROTOM® 800computertomograph–which
combinesmetrologyandtomography–istheoptimalsolution
formanufacturersintheplastics,medicalengineeringand
electronicsindustries:itcanbeusedtoinspecttheinterior
structuresandqualityofsmall,complexpartsmadeof,for
example,plasticorceramicmaterials.Thesystemdeliversa
Sales revenues
(EURmill)
2008/09 304
2007/08 374
2006/07 316
2005/06 278
2004/05 247
Employees
(Full-timeequivalents)
30SEP2009 1,749
30SEP2008 1,803
30SEP2007 1,509
30SEP2006 1,286
30SEP2005 1,260
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS INDUSTR IAL METROLOGY
54
BusinessGroupIndustrial Metrology
Focusing on users: Carl Zeiss offers the right software solutions for its measuring machines. Major emphasis during development is given to intuitive user guidance.
55
complete3Dmeasurementoftheworkpieceandoffersthe
possibilityofcomparingthisdatawithCADdata.Thisenables
fasterqualitycontroland,inpart,considerablyshorterdevelop-
mentandreleasetimesthanwithtraditionaltechniques.
ThecabinoftheMETROTOM® 800chieflyconsistsofconcrete
polymer;practicallynoleadisused.Byusingthesemodern
materials,CarlZeisshelpsminimizeexposureoftheuserto
harmfuleffectsandreduceenvironmentalpollution.
Online Service Portal: for and with the Customer
TheIndustrialMetrologyGroupusedthepastfewyearsto
establishandexpanditscustomerservices.Theofferingincludes
technicalsupportformeasuringsystems,applicationtrainingand
providingcustomerswithassistanceinthefieldofsoftware
solutionsandcustomizedprogramming.Duringthereporting
year,CarlZeissaddedtheCarl Zeiss Web Academy®tothis
offering.Inthiscommunity,usersofZEISSmeasuringsolutions
canexchangetheirknowledgeandexperienceinforumsand
blogsandutilizetheknow-howofCarlZeissmeasuringexperts.
Inaddition,thecompanyusesthisplatformtooffersoftware
updatesandadditions.
CarlZeissconstantlydrivesthedevelopmentofsoftware
solutionsformetrologyapplications.Intuitiveuserguidanceis
thefocusofattentioninthedevelopmentofnewmeasuring
programs.Infiscalyear2008/09theIndustrialMetrologyGroup
presentedmyCALYPSO®,anextensionoftheCALYPSO®
measuringsoftwarealreadyestablishedonthemarket.Thanks
toasimpleuserinterface,myCALYPSO®canbeutilizedquickly
andefficientlywithminimumtrainingrequirements.Alink
totheCarl Zeiss Web Academy®onlineportaloftheIndustrial
MetrologyGroupmakesitpossibletodownloadprogramsfor
measuringtasksandexchangethemwithotherusers.
Close Relationship with Customers
TheservicesoftheIndustrialMetrologyGroupincludecontract
programmingandcontractmeasurements.Duringthereporting
yearCarlZeisscreatedalltestrecordsfortheproductionfacility
ofanautomotivegroupinChina.Thisexampleshowsthemany
benefitsofclosecollaborationwiththecustomer:theprerequi-
siteforsuchaprojectisadeepunderstandingofthecustomer’s
application,processesandpartsinordertoprovidetheoptimal
solutionforhisneeds.
New Fields of Application – New Opportunities
ThebusinessoftheIndustrialMetrologyGrouphasalong-term
perspective.Theimportanceofqualityassurancewillgrowinthe
future.Trendsnotonlyintheautomotiveindustry,mechanical
engineeringandtheenergysector,butalsoinmedicaltechnol-
ogyandtheplasticsindustryopenupnewopportunitiesfor
CarlZeiss.Forexample,newchallengesresultinqualityinspec-
tionwithmeasuringsolutionsusedinthedevelopmentofnew
drivetechnologies(downsizing)orintheincreasingminiaturiza-
tionofcomponentsinmechanicalengineering.
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BusinessGroupConsumer Optics/Optronics
Planetariums,cameraandcinelenses,securitytechnology,binocularsandspottingscopes–theConsumerOptics/OptronicsGrouppossessesabroadportfolioofproducts.Infiscalyear2008/09,thebusinessgrouppostedrevenuestotalingEUR304million.
“ARRI’songoingpartnershipwithCarlZeisshasresultedinsomeofthefinestmotionpicturelensesevermanufactured.Thisuniquerelationshipissustainedbythecompanies’sharedstrengthsofcutting-edgetechnology,unsurpassedknowledgeofthecinemato-graphymarketsandconstantinnovation.”
Dr. Martin Prillmann (left) and Franz Kraus,
Managing Directors of Arnold und Richter Cine Technik (ARRI), Munich, Germany
57
RevenuesintheConsumerOptics/OptronicsGroupwere
EUR304millionandremainedpracticallystableincomparisonto
lastyear(EUR309million).Incomingorderswereclearlyabove
lastyear’sfigure.Thisislargelyattributabletothesuccessof
theOptronicsDivision.Infiscalyear2008/09thedivision,which
developsanddistributessecuritysystems,reportedagrowth
trendandpostedincreasesinbothrevenuesandincomingorders
overlastyear.
Biggest Order in Recent Corporate History
Theworldisbecomingalessandlesssafeplacetolive.State
spendingonconflictpreventionandmanagementisrising
constantly.Withitssystemsformoresecurity,CarlZeiss
numbersamongthepreferredpartnersforclientsinthefields
ofdefenseandnationalsecurity.Forexample,thecompany
suppliesoptronicintelligencesystemsforpolicehelicoptersas
wellasoptronicandopticalsystemsforthenew“Puma”
armoredvehicleoftheGermanArmy.Thisorderisoneofthe
largesteverreceivedinthecompany’shistory.Overthepast
fiveyears,atwenty-strongresearchteamdevelopedoneof
themostadvancedandpowerfulopticalandoptronicsystems
forarmoredvehiclesaspartofthisproject.
Optronics Make Flying Safer
InJanuary2009theOptronicsDivisionlaunchedtheMivotherm
birdstrikewarningsystem.Thismakesitpossibletopredict
theflightofbirdsoverrivers,valleysorcoastlinesandtherefore
protectaircraftagainstcollisions.InMay2009,Mivotherm
receivedthecovetedLilienthalAwardpresentedbytheGerman
aerospaceindustry.
A Milestone in Communications
Tomaketheworldasaferplace,informationisrequiredthat
canbetransmittedquicklyandsecurelyoverlongdistances.
CarlZeisshasdevelopedanew,pioneeringtechnologyforthis
purpose:lasercommunication.Modulatedlaserlighttransmits
largeamountsofdata–upto1,000megabitsasecond–faster
thantraditionalsystemsandisnotdependentoncablesorradio
frequencies.Inthefallof2009CarlZeisslaunchedtheworld’s
firstfullystabilizedlasercommunicationterminalontheworld
market.
Additional Market Share in the USA and Asia
TheCameraLensDivisionreportedastableupwardtrendinthe
reportingyear.Thedivisionwonmarketshare,aboveall,inthe
USandAsia.Businesswithlensesformovieproductionswasthe
onlyareatoremainbelowthelevelreportedlastyear.Salesof
lensesfordigitalSLRcamerasandopticsforindustrialapplica-
tions,ontheotherhand,showedverypositivedevelopments.
Two Lenses Every Second
Aroundtheglobe,twopeopleeveryseconddecidetopurchase
amobilephone,awebcamoracamerafeaturingopticsfrom
CarlZeiss.InApril2009CarlZeissandtheSONYelectronics
groupextendedtheircollaborationbyaperiodoffiveyears.For
thepast13years,SONYhasbeenofferingdigitalcameras
andcamcordersequippedwithZEISSlensesand,since2006,
interchangeablelensesfortheSonyAlphaDSLRsystem.
CarlZeissalsocollaborateswiththeNOKIAtelecommunications
groupandthecomputeraccessorymanufacturerLogitech:
NOKIAusesZEISSOpticsforitscellphones;Logitechequipsits
premiumwebcamswithopticsfromCarlZeiss.
Sales revenues
(EURmill)
2008/09 304
2007/08 309
2006/07 245
2005/06 234
2004/05 280
Employees
(Full-timeequivalents)
30SEP2009 1,524
30SEP2008 1,510
30SEP2007 1,504
30SEP2006 1,203
30SEP2005 1,357
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58
BusinessGroupConsumer Optics/Optronics
More security: helicopters with modern camera optics from Carl Zeiss.
More possibilities: Carl Zeiss offers lenses for analog and digital cameras.
More enjoyment: discover nature with ZEISS binoculars and spotting scopes.
More black: VELVET® projects pure black onto the planetarium dome – for brilliant images with outstanding contrast.
59
Lens Offering Adapted to Market Requirements
Duetotherecession,themarketforlensesusedinthemovie
industryshrank.Moviebudgetswerecutorcancelled,reducing
thepossibilitiesofmanufacturingcompaniesandrentalhouses
toinvestinadditionalnewequipment.CarlZeisshasaddednew
productstoitscineproductoffering:theCompact Primeline
introducedbythecompanyinApril2009isprimarilyaimedat
up-and-comingmoviemakersandlow-budgetproductions.In
addition,CarlZeisshasdevelopedanewpremiumcinelens:the
Master Macroalsoofferstheoutstandingperformanceofthe
Master Primeseriesformacroapplicationsandistherefore
uniqueonthemarket.Byexpandingitslenslineinthelowerand
upperpricesegments,CarlZeisscannowofferasuitablelens
foranyrequirement.
Great Interest in the VELVET® Video Projector
ThePlanetariumDivisionreportedastabletrendinfiscalyear
2008/09–revenuesandincomingorderswereclearlyabovelast
year’sfigures.TheVELVET® videoprojectormetwithaparticularly
highlevelofinterest:itcanprojectpureblackandtherefore
generatebettercontrastthanothersystems.ThefirstVELVET®
projectorswillbeinstalledinBochum,WolfsburgandBerlinat
thebeginningof2010.
InthefieldofplanetariumtechnologyCarlZeissoffersaunique
combinationoftraditionalstarprojectorswithdigitalsystems
thatcanbeoperatedviathecentralpowerdome®controlunit.
Technology Tailored to Customer Wishes
Theoutstandingflexibilityofthetechnologymakesitpossibleto
turnanyplanetariumintoamultimediacenter.Themodular
designofthetraditionalstarprojectorsallowscustomized
combinationofopticalanddigitallyprojectedfunctionsandcan
thereforebetailoredtothedifferentinvestmentbudgetsof
customers.
Additional Electronic Systems Are In Demand
IntheyearunderreviewtheSportsOpticsDivisionreportedan
increaseinrevenues–despiteadifficulteconomicenvironment.
Withconsistentsalesandinnovationmanagement,thedivision
wasabletocompensateforlossesinrevenueinindividual
regionsandmarkets.
Fiscalyear2008/09sawacontinuationofthepositivetrendin
businesswithbinocularsandhuntingopticsfeaturingadditional
electronicfunctionssuchaslaserrangefinders.
Outstanding Design
Inthehighlycompetitiveandprice-aggressivemarketfor
binoculars,spottingscopesandhuntingoptics,CarlZeiss
successfullyexpandeditspositionasatechnologyleader.With
thePhotoscope™,forexample.Thisspottingscopefeatures
anintegrateddigitalcameracontainingasupertelelens,
allowingsimultaneousviewingandphotography.Thesystem
washonoredwiththe2009reddotDesignAward.
Brilliantoptics,outstandingeaseofuseandfunctionaldesign–
thisisallcombinedinbinocularsfromCarlZeiss.Thishasbeen
confirmedbynumerousawardssuchasthenominationofthe
Victory RFbinocularsforthe2010DesignPrizeoftheGerman
Government,thecountry’smostcoveteddesignaward.
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JointVentureCarl Zeiss Vision
Dive into the world of ZEISS when buying eye- glasses: with a new brand initiative, Carl Zeiss Vision is making the ZEISS brand something that patients of eye care professionals can actively experience
CarlZeissistheworld’ssecondlargesteyeglasslensmanufacturer.ThecompanyisequallyownedbyCarlZeissandtheprivateequityfirmEQT.TheCarlZeissVisionGroupisvaluedbytheequitymethodinthefinancialstatementsoftheCarlZeissGroup.
61
CarlZeissVisionconcludedfiscalyear2008/09withrevenues
totalingEUR879million.Adjustedforcurrencyinfluences,this
representsafallofthreepercentoverthepreviousyear
(EUR892million).
Furtherintensifiedbytherecession,themarketenvironmentwas
characterizedbyadownturnindemand,increasingpricepressure
andconsolidations.Thankstotheconsistentimplementation
ofthecorporatestrategy,CarlZeissVisiondevelopedbetterthan
themarketandincreaseditsmarketshareinallkeymarkets.
Inthereportingperiod,CarlZeissVisioncontinuedtoimplement
itsrestructuringmeasuresaroundtheglobe:theefficiencyof
manufacturinganddistributionwasincreasedandpartsof
productionwereconcentratedincountrieswithconsiderably
lowermanufacturingcosts.Inthefuture,massproductionwill
beperformedatthreeinsteadoftensites.Inthecoremarkets,
theproductionofprescriptionlenseswillbestrengthenedin
combinationwithhigh-qualityproductofferings,whileglobal
researchanddevelopmentaswellasmarketingwillbeexpanded
atheadquartersinAalen.Asaresultofthisprogram,thenumber
ofemployees(full-timeequivalents)decreased:onthebalance
sheetdate,thecompanyhadaglobalworkforceof11,659
employees(lastyear:12,830),including1,138(lastyear:1,187)
inGermany.
Well Positioned in the American Market
CarlZeissVisionfocusesonfourcompetitivebenefits:theZEISS
brand,innovativeindividualizedandfreeformeyeglasslenses,
high-qualitycoatingsandexpandingitsnetworkofprescription
labs.InSouthAmerica,CarlZeissVisionwonmarketshareand
expandeditsnetworkofprescriptionlabs.InMexicoanew
factorywasopenedtosupplyproductstolargecustomers.
Duringthereportingyear,CarlZeissenteredintoastrategic
partnershipwithamajorUShealthinsurer.Thegoalistojointly
operateprescriptionlabsanddistributeeyeglasslenses.
Growth in Asia
CarlZeissVisionachievedconsiderablegrowthInJapan,China
andIndiaduringtheyearunderreview.Towinadditionalmarket
shareinthesegrowthmarketsinthefuture,thecompany
developedaspeciallensthatcanbeoptimallymatchedtothe
shapeoftheAsianface:theGT2® 3D ASIANAprogressivelens.
Focus on Quality and Innovations in Europe
CarlZeissVisionhassignificantlyimprovedqualityanddelivery
performanceforallEuropeancustomers.Inordertocounterthe
increasingpricepressure,thecompanyisfocusingoninnova-
tionsthatstrengthentheZEISSbrandinthecompetitivearena
andmakeitsomethingthatpatientsofeyecareprofessionals
canactivelyexperience.
Sinceitsintroductionin2007,CarlZeissVisionhasverysuccess-
fullysoldthei.Profiler®–theleading-edgesystemusedto
measurei.Scription®eyeglasslensesthatenablemaximum
adaptationtothepersonalvisualrequirementsofthewearer.Eye
careprofessionalsusingthissystemhaveachievedanaverage
increaseinsalesofaround20to30percent.
Duringthefiscalyear,CarlZeissVisionpresentedthe“Experience
ZEISS”conceptforeyecareprofessionals,providingthemwith
extensivesupporttooptimizetheirbusinesssuccess.Withthe
VisionAnalysismodule,theShopSystem–aconceptcomprising
brand-compatiblefurnishingsfortheeyecareprofessional–
andmarketingpackages,ZEISSlensesareoptimallypositionedas
outstandingbrandnameproductsinthesellingprocess.
Sales revenues
(EURmill)
2008/09 879
2007/08 892
2006/07 844
2005/06 845
2004/05 789
Employees
(Full-timeequivalents)
30SEP2009 11,659
30SEP2008 12,830
30SEP2007 10,293
30SEP2006 10,626
30SEP2005 9,995
*Proformarevenues
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUSINESS GROUPS FROMTHE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS CARL ZE ISS V IS ION ( JO INT VENTURE )
*
62
ResearchandDevelopmentTurning Ideas into Business Success
CarlZeissinvestedaroundEUR284million,orabout14percentofsalesrevenues,intoresearchanddevelopment.Theresult:morethan300patentapplicationsduringfiscalyear2008/09.Thepatentsareincorporatedinproductsnotolderthanfiveyearswhichaccountedforaround60percentoftotalsalesrevenuesinthereportingyear.
Doesthepartdisplaythespecifiedsurfacequality?Anddoesit
havetherightcurvature?–Questionslikethesehavetobe
answeredeverydayintheautomotiveindustryorinthemanu-
factureofconsumerelectronics.Todothis,anemployeeexamines
thepart,holdsitupagainstthelight,rotatesitandturnsitover.
Thismanualvisualinspectionhasitsdrawbacks:itissubjective,
anditisneitherreproduciblenorquantifiable.Intimesofin-
creasingqualityrequirements,thisisanunsatisfactorysolution.
Successful Test with Pilot Customers
Thesolutionis:OIM–shortforOpticalInlineMetrology.Ayoung
subsidiaryofCarlZeiss–CarlZeissOIMGmbH–iscurrentlyin
theprocessoflaunchingthissystemonthemarket.Thesystem
performsthesurfacetestingof3Dtestpieceswiththeaidofa
processknownasphase-measuringdeflectometry.Aftersuc-
cessfultestswithpilotcustomers,CarlZeissisnowopeningupa
newmarketsegmentwiththisleading-edgeproduct.Thequality
ofasurfaceanditsappearancecannowbemeasuredforthe
veryfirsttime.Inotherwords,CarlZeisshasturnedapioneering
ideaintoanewfieldofbusiness.
Bringing New Ideas to Market Maturity
CarlZeissOIMisthefirstcompanytobenefitfromfast,unbu-
reaucraticstart-upfinancingprovidedbythecompanyCarlZeiss
VentureBeteiligungsgesellschaft.CarlZeissfoundedthis
companyduringfiscalyear2007/08inordertoimprovethe
opportunitiesavailableforinnovativeideaswithclearlydefined
risksandimplementthemintheformofmarketableproducts.
Itfinancesnewtechnologiesandproductconceptswithhigh
marketpotential.Intheselectedprojectsemployeesaccept
entrepreneurialresponsibilityandreceivesupportfromexperi-
encedexecutivesinthecompany.Centraldivisionsofthe
companyperformaccountingandHRmanagementfunctionson
theirbehalf.
New Technologies on the Radar
Beforeastart-upcompanycanbefounded,however,good
ideasarerequired.Likesuccess,goodideasarelesstheresultof
luckandtalentthanofhardwork.Thisworkisknownasthe
NewBusinessGenerationProcess.Here,newapproachesand
solutionsareinvestigatedanddevelopedforthedifferentareas
ofthecompany.
Theprocessstartswiththequestion:Onwhatfuture-oriented
ideasandissuesareuniversities,scientists,institutesandother
companiesrelevanttoCarlZeisscurrentlyworking?Toensure
thatthesearch,or“radar”asitisalsocalled,iskeptasclear
andconciseaspossible,thedivisionsandCorporateResearch
jointlydefineradartopics.Theselectioncriteriaincludehigh
developmentdynamics,highcustomerormanufacturerbenefit
andmarketmaturitywithinthreetotenyears.Oneexampleof
sucharadarprojectisnewmetrologymethodsthataresuitable
inparticularforapplicationsrangingfromindustrialprocess
controltouseontheproductionline.Technologiesandtechnol-
ogytrendsaresystematicallypursued,andtheiropportunities
andrisksevaluated.Thegoalisalwaystofindandimplement
technologicaldevelopmentsandbusinessoptionsattheright
time.
Expand and Utilize Networks
Inadditiontothestructuringofasearchfieldandthemonitor-
ingofdevelopmentsinscienceandindustry,technologytransfer
63
anddevelopmentprojectsareidentifiedforindividualdivisions
orprojectswithmajorpotentialfortheentireCarlZeissGroup.
Needlesstosay,thecompanyalsousestheradarstobuildits
ownknow-how.Almostbytheway,therefore,radaremployees
workinginCorporateResearchsetupnetworkstosafeguardthe
futureviabilityofthecompany.
Thenetworkswhicharealreadyinplacespantheentireglobe.
Theyrangefromon-sitecollaborationwithuniversities,the
FriedrichSchillerUniversityinJenaforexample,andEuropean
partnerssuchastheSwissFederalInstituteofTechnologyin
Zurich,Switzerland,toHarvardUniversityintheUSA.
Successfulproductsregularlyresultfromthenetworks.Correla-
tive microscopyisjustoneexample.Thistermisusedtodescribe
thecombinationoflightandscanningelectronmicroscopy.The
keyelementsofthissolutionarethejointspecimenholderand
adapteraswellasanewlydevelopedsoftwarepackageforfast,
automatedrelocationandexaminationofoneandthesame
specimenareaunderbothalightandanelectronmicroscope.
OrELYRA™,asuperresolutionmicroscopelaunchedlast
October.Thesearetwoexcellentexamplesthatillustratehow
usefultheinternationalnetworkscanbe.
InvestinginInnovation–abusinessthatpaysoffforCarlZeiss.
2008/092007/082006/072005/062004/05
399 368 384 422 346 Patent applications
Patents
2008/092007/082006/072005/062004/05
230 254 290 321 284 EUR million
10 10 11 12 14 in % of revenues
Expenditures for research and development
2008/092007/082006/072005/062004/05
1,605 1,748 1,935 2,009 2,058 Employees
14 16 16 15 16 in % of totalworkforce
Employees in research and development
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64
Onthebalancesheetdate(September30,2009),CarlZeisshad
12,872employeesaroundtheworld,1.5percentfewerthanlast
year(13,060).8,307peopleworkforthecompanyinGermany
(lastyear:8,440).Around16percentoftheworkforceis
employedinresearchanddevelopment(lastyear:15percent).
Inrecentyearsthecompanycreated500newjobsonaverage
perfiscalyear.Thereportingyearsawaslowingofthistrend
duetotheglobaleconomiccrisis.ThefocusofHRmanagement
infiscalyear2008/09wastokeephighlyqualifiedemployees
inthecompany.Toachievethisgoal,theCarlZeissGroup
useditsflexibleHRtools:timeaccruedinflextimeaccountswas
reducedandtemporaryemploymentcontractswerenot
renewed.Employeesfromareasinwhichtherewasasharpdrop
indemandweredeployedinotherbusinessgroups.Asthese
measuresdidnotsuffice,however,CarlZeissmadetargeteduse
ofshorterworkinghoursinsomeareasofthecompany.
Overall Package Approved
InJune2009,afternegotiationswithemployeerepresentatives
inGermany,anoverallpackagewasapprovedtoovercomethe
economicsituation.ThenegotiatingpartiesagreedthatCarlZeiss
wouldnotlayoffanypersonnelbefore30September2010.
TheemployeesofthecompaniesinGermanyboundbycollective
wagebargainingagreementsconsentedtoforgo75percent
oftheirvacationbonusandthe2.1percentincreaseinpay
ratesandone-timebonuspaymentscheduledforMay2009.In
addition,therewillbenopaymentofChristmasorvacation
bonusesinfiscalyear2009/10.Executivesandemployeesnot
subjecttotheagreedpayrateswillmakeanappropriate
equivalentcontribution.Throughadditionalmeasures–suchas
HumanResourcesDeveloping Employees
Competenceandknow-how,motivationandpassion–employeesatCarlZeisshaveoutstandingqualities.Theirknowledgeandskillslaythefoundationforthecompany'stechnologyleadership.Inordertosafe-guardthiscompetitiveedge,CarlZeisspursuesatargetedandsustainablepolicyofpotentialdevelopmentandinvestsinawiderangeoftrainingprogramsonanongoingbasis.
theexpansionofshorterworkinghours,ashorterworkweek,
thediscontinuationoftemporaryemploymentcontracts,and
modelsforpartialandearlyretirement–CarlZeissachievedits
aspiredgoalofreducingpersonnelandsafeguardingmany
jobsatthesametime.
High-quality Training as a Sound Foundation
Inordertocountertheincreasingshortageofskilledstaff,
CarlZeissoffersin-house,need-basedtraining.Onthebalance
sheetdate,451youngpeoplewerelearningatechnicalor
commercialoccupation(lastyear:447).Thiscorrespondstoa
trainingquotaofaroundfivepercentfortheGermansites.
WiththeTop Trainee Program,thecompanyoffersgraduatesan
opportunitytotakethefirststepintotheirfuturecareers.Overa
periodtotaling15months,theseyoungpeopleexperience
variousareasoftheCarlZeissGroupandbecomeacquainted
withthecompany.Inthisway,theseupcomingjuniorexecutives
areoptimallypreparedforthetaskstheywillperformafter
completionoftheprogram.
Targeted Promotion of Potential
CarlZeissfocusessharplyontargetedandsustainedpersonnel
development.Thecompanyhasestablishedvariousprograms
forthispurpose.
TheJunior Leadership Programpreparesyoungpeoplefor
managementtasks.Around150employeeshavenowsuccess-
fullycompletedtheprogramaroundtheglobe.Around
80percentoftheparticipantshavesuccessfullyenteredthe
nextstageintheircareers.
65OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROM THE GROUP AT YOURSERV ICE F INANCIAL STATEMENTS HUMANRESOURCES
Withthetechnicalladder,CarlZeissoffersaspecialcareer
possibilitytoemployeeswithspecialisttechnicalorscientific
knowledge:liketheclassicmanagementladder,thereareseveral
careerlevels,butthereisnomanagementresponsibility.Inthis
way,theexpertscandevotetheircompleteattentiontotheir
specialistareaofactivity.
ThecompanypromotesinternationalexchangewithitsGlobal
Mobility Program:employeescanworkatadifferentsitesofthe
company,inadifferentcountryoronadifferentcontinent.
Allformalitiesfortheorganizationoftheforeignassignmentare
performedbythecompany.
Top Priority: Ongoing Training
CarlZeissattachesgreatimportancetotheongoingtrainingof
itsemployees.Thecompanycontinuallyinvestsinmeasuresto
expandandintensifytheskillsandknow-howofitsworkforce.
Despitethesavingsprogram,over9,000employeesattended
specialisttechnicalandcommercialseminarsandcoursesin
languagesandhealthpromotionduringthereportingyear.For
employeesaffectedbyshorterworkinghours,CarlZeissorgan-
izedadditionalcoursessuchastrainingintheleanprincipleor
presentationtechniques.
Attractive Employer
TheZEISSbrand,themanydifferentadvancedfieldsofactivity
offeredbythecompany,itsmanytraininganddevelopment
possibilitiesanditsgoodsocialbenefitsmakeCarlZeissan
attractiveemployer.Thisisunderscoredbynumerousawards
andthegoodratingsinemployerrankingsconductedbycareer
magazines.Here,thecompanywasalsorankedhighlyinthe
yearunderreview.
Production 36 %
Service and Distribution 34 %
Research and Development 16 %
Administration 14 %
Manpower Structure (30 September 2009)
09.30.0909.30.0809.30.0709.30.0609.30.05
11,049 11,249 12,257 13,060 12,872 Total
3,363 3,406 4,292 4,620 4,565 Outside Germany
Manpower
66
ShareholderThe Carl Zeiss Foundation
TheCarlZeissFoundation(CarlZeissStiftung)isthesoleshareholderofCarlZeissAG.Itgivestheenterprisebothindependenceandalong-termperspective.Createdin1889,thefoundationpromotesscienceandresearchinthefieldsofnaturalandengineeringsciences.
TheCarlZeissFoundationisthesoleownerofCarlZeissAG,
Oberkochen,andSCHOTTAG,Mainz.Itgivesbothcompanies
thesecurityoflong-termownership:thesaleofshares,for
examplethroughaninitialpublicoffering,isruledoutbythe
foundation’sconstitution.Intheirmanagementofthecompa-
nies,theExecutiveBoardscanconcentrateonthesustainedand
strategicdevelopmentofthecompanies.
ThemainobjectiveofphysicistErnstAbbe,whocreatedthe
Foundationin1889,wastopromoteresearchandteachingin
thenaturalandmathematicalsciences.Atthesametime,the
foundationwasintendedtosecuretheeconomicfutureofthe
companiesCarlZeissundSCHOTT,meetsocialobligations
towardtheemployeesandrepresentthegeneralinterestsofthe
precisionengineeringindustry.
Thefoundationwasextensivelyreformedin2004.TheCarlZeiss
Foundationmodernizeditsconstitutionandthelegalformof
thetwooperatingenterprises.Theywerebothtransformedinto
stockcorporations.
TodaytheCarlZeissFoundationadvertisesprogramstopromote
up-and-comingyoungscientistsandtostrengthenresearch
structuresatuniversities.Inaccordancewiththeconstitution,
thepromotionalactivityislimitedtotheGermanfederalstatesof
Baden-Wuerttemberg,Rhineland-PalatinateandThuringia,where
thefoundationanditsoperatingenterprisesarebased.
ThefundsprovidedbytheCarlZeissFoundationforthispurpose
arefinancedfromdividendpaymentsoftheenterprisesCarlZeiss
andSCHOTT.InrecentyearsCarlZeisshastransferredaround
EUR30milliontotheCarlZeissFoundation.
FROM THE GROUP CARL ZE ISS FOUNDAT ION
Carl Zeiss Stiftung(Carl Zeiss Foundation)
HeidenheimanderBrenzandJena
Foundationactingasashareholder
Foundationenterprise
Carl Zeiss AGOberkochen
Subsidiaries
Carl Zeiss Group
Foundationenterprise
SCHOTT AGMainz
Subsidiaries
SCHOTT Group
100%100%
6767
CarlZeissAGExecutive Board Supervisory Board
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOUR SERVICE F INANCIAL STATEMENTS EXECUT IVE BOARDANDSUPERV ISORYBOARD
68
Executive Board and Supervisory Board of Carl Zeiss AG
Carl Zeiss AG Executive Board
Hermann Gerlinger, Dr. rer. nat.
Aalen,Germany
MemberoftheExecutiveBoardrespon-
sibleforSemiconductorTechnology,
Production,BusinessProcessExcellence,
BusinessServicesandInfrastructure,and
CorporatePurchasing,aswellasPresident
andCEOofCarlZeissSMTAG.
BorninBadMergentheim,Germany,in
1953.1973–1979Studiesofphysicsat
theUniversityofWürzburg.Subsequent
doctorateatthesameuniversity.Appoint-
menttotheAcademicCommitteein1984.
JoinedCarlZeissin1984.ProjectManager
andheadofaproductarea;Project,
DevelopmentandOperationsManagerin
theLithographyOpticsDivision,Executive
VicePresidentandGeneralManager
oftheSemiconductorTechnologyGroup.
Since2001,PresidentandCEOof
CarlZeissSMTAG.SinceOctober1,2006,
MemberoftheCarlZeissAGExecutive
Board.
Michael Kaschke, Dr. sc. nat.
Oberkochen,Germany
MemberoftheExecutiveBoardrespon-
sibleforMedicalSystems,Microscopyand
CorporateFinances,Controllingand
Taxes,andPresidentandCEOofCarlZeiss
MeditecAG.
BorninGreiz,Germany,in1957.1979
-1983StudiesofphysicsattheFriedrich
SchillerUniversityinJena.Subsequently
scientificassistantanddoctorate;guest
scientistattheMaxPlanckInstitutein
Göttingenandmemberofthescientific
staffatIBMintheUSA.
JoinedCarlZeissin1992.Management
positionsindevelopment,research,and
generalmanagement,VicePresidentand
GeneralManageroftheSurgicalProducts
DivisionandExecutiveVicePresidentand
GeneralManageroftheMedicalSystems
Group.SinceOctober1,2000,Member
oftheCarlZeissAGExecutiveBoard.
SinceJuly2008PresidentandCEOof
CarlZeissMeditecAG.
Dieter Kurz, Dr. rer. nat.
Aalen,Germany
President & CEO and Labor Director
MemberoftheBoardresponsiblefor
IndustrialMeasuringTechnology,Consum-
erOptics/Optronics,StrategicCorporate
Development,CorporateResearchand
Technology,CorporateCommunications,
CorporateHumanResources,Corporate
AuditingandRiskManagement,and
CorporateLegalandPatents.
BorninTübingen,Germany,in1948.
1969-1974Studiedphysicsatthe
EberhardKarlsUniversityinTübingen,
followedbydoctorateinthefieldof
semiconductortechnologyandelectron
beamtechnology.
JoinedCarlZeissin1979.Management
positionsindevelopment,research,
marketing,salesandgeneralmanage-
ment;workedfortwoyearsinNorth
America.VicePresidentandGeneral
ManageroftheSemiconductorOptics
Division,andExecutiveVicePresidentand
GeneralManageroftheSemiconductor
TechnologyGroup.Memberofthe
ExecutiveBoardsinceJanuary1,1999.
PresidentandChiefExecutiveOfficer
ofCarlZeisssinceJanuary1,2001;
PresidentandCEOofCarlZeissAGsince
September6,2004.
69
Carl Zeiss AG Supervisory Board
Dr. Michael Claus 1)
Aalen
FirstDeputyChairmanoftheGroup
EmployeeRepresentativeCouncilof
CarlZeissAG,Oberkochen
Prof. Dr. Dres. h.c.
Adolf G. Coenenberg
Stadtbergen
FormerChairofAuditingandControlling,
FacultyofBusinessAdministration,
UniversityofAugsburg
Reinhard Dickehuth 1) 3)
Friedland
ChairmanoftheEmployeeRepresentative
CouncilattheGöttingenlocationof
CarlZeissMicroImagingGmbH,Jena
Dr. Klaus Dieterich 3)
Stuttgart
PresidentCorporateResearchand
Development,RobertBoschGmbH,
Stuttgart
Roland Hamm 1)
Aalen
FirstAuthorizedRepresentativeofIG
Metallunion,AdministrationOffice,Aalen
Hans-Jürgen Heinicke 1) 2)
Aalen
HeadofProductDataManagement,
CarlZeissOptronicsGmbH,Oberkochen
Dr. Mathias Kammüller
Gerlingen
ExecutiveVicePresident,TRUMPFGmbH
+Co.KG,Ditzingen
Hermann-Josef Lamberti
KönigsteinimTaunus
MemberoftheBoardofManaging
Directors,DeutscheBankAG,Frankfurt
amMain
Dr. Winfried Scherle 1) 2)
Aalen
VicePresidentandGeneralManagerof
theCameraLensDivision,CarlZeissAG,
Oberkochen
Karl-Heinz Schuster 1) 3)
Königsbronn
MemberoftheEmployeeRepresentative
Councilexemptedfromnormalduties,
CarlZeissSMTAG,Oberkochen
Dr. Michael Rogowski
HeidenheimanderBrenz
ChairmanoftheShareholders'Committee
ofVoithandoftheSupervisoryBoardof
VoithAG,HeidenheimanderBrenz
Prof. Dr. Dr. h. c. Günter Stock 3)
Berlin
PresidentoftheBerlin-Brandenburg
AcademyofSciencesandHumanities,
Berlin
Prof. Dr. Klaus-Dieter Vöhringer
Baden-Baden
FormerMemberoftheBoardofManag-
ingDirectors,DaimlerChryslerAG,
Stuttgart
Chairman's Committee
Dr.h.c.EggertVoscherau(Chairman),
JürgenDömel,RolandHamm,Dr.Michael
Rogowski
Mediation Committee
Dr.h.c.EggertVoscherau(Chairman),
ReinhardDickehuth4),JürgenDömel,
Hans-JürgenHeinicke2),Hermann-Josef
Lamberti
Auditing Committee
Prof.Dr.Dres.h.c.AdolfG.Coenenberg
(Chairman),HellmuthAeugle4),
Dr.MichaelClaus,Dr.WinfriedScherle2),
Dr.h.c.EggertVoscherau
1)Employeerepresentative2)UntilApril27,20093)SinceApril27,20094)SinceMay27,2009
Committees of the Supervisory Board of Carl Zeiss AG
Dr. h. c. Eggert Voscherau
Wachenheim
Chairman
ChairmanoftheSupervisoryBoardof
BASFSE,Ludwigshafen;Chairmanofthe
ShareholderCounciloftheCarlZeiss
Foundation,HeidenheimanderBrenz/
Jena;ChairmanoftheGermanFederal
Employers’AssociationfortheChemical
Industry(BAVC);VicePresidentofthe
GermanFederalEmployers’Associations
Jürgen Dömel 1)
Jena
Deputy Chairman
ChairmainoftheGroupEmployee
RepresentativeCouncilofCarlZeissAG,
Oberkochen
Hariolf Abele 1) 3)
Aalen
Softwaredeveloperfornewtechnologies
atCarlZeissIMTGmbH,Oberkochen
Hellmuth Aeugle 1) 3)
Königsbronn
SeniorVicePresident,BusinessServicesand
Infrastructure,CarlZeissAG,Oberkochen
PD Dr. Martin Allespach 1)
Kelkheim-Fischbach
SecretaryforKeyIssuesandSocialPolicy
ontheBoardofDirectorsofIGMetall,
FrankfurtamMain
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOUR SERVICE F INANCIAL STATEMENTS EXECUT IVE BOARDANDSUPERV ISORYBOARD
70
CarlZeissGroupOrganizational Structure September30,2009
Medical Systems Semiconductor Technology Microscopy
Laser
Optics
Semiconductor
Metrology
Systems
Nano
Technology
Systems
Lithography
Optics
IndustrialBioSciencesMicrosurgerySurgical
Ophthalmology
Ophthalmology
Systems
Corporate Management
CorporateFunctionsandServiceDivisions
StrategicBusinessUnits
BusinessGroups
Markets
Carl Zeiss AG, Oberkochen
CarlZeissJenaGmbH,Jena
CarlZeissFinancialServicesGmbH,Oberkochen
Medical and Research Solutions Industrial Solutions
CarlZeissMeditecAG
Jena
CarlZeissMicroImagingGmbH
Jena
CarlZeissSMTAG
Oberkochen
71
PlanetariumsSportsOpticsCamera
Lenses
OptronicsIndustrialMetrology
Lifestyle Products
CarlZeissIndustrielle
MesstechnikGmbH
Oberkochen
CarlZeiss
OptronicsGmbH
Oberkochen
CarlZeissAG,
Oberkochen
CameraLens
Division
CarlZeissSports
OpticsGmbH
Wetzlar
CarlZeissAG,
Planetarium
Division
Jena
CarlZeissVision
HoldingGmbH1)
Aalen
Carl Zeiss Vision
(JointVenture)
Consumer Optics/OptronicsIndustrial Metrology
1)consolidatedatequity
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72
Germany
10productionsites
5salesandservicelocations
Europe (including Germany)
15productionsitesin5countries
26salesandservicelocationsin17countries
Americas
3productionsitesin1country
6salesandservicelocationsin5countries
Asia/ Australia
2productionsitesin1country
10salesandservicelocationsin10countries
Africa/ Middle East
2productionsitesin2countries
3salesandservicelocationsin2countries
73
Major Subsidiaries and Associated CompaniesSharepercentagerelativetoentireGroup
September30,2009
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOUR SERVICE F INANCIAL STATEMENTS MAJORSUBS ID IAR IES ANDASSOCIATEDCOMPANIES
1)Productionunit(generallyhasownsalesarea)
Medical Systems
Carl Zeiss Meditec AG 1)
Jena(listed)65.1%Germany
Carl Zeiss Surgical GmbH 1)
Oberkochen65.1%Germany
*Acri.Tec GmbH 1) Hennigsdorf65.1%Germany
Carl Zeiss Meditec S.A.S.1)
LaRochelle65.1%France
HYALTECH Ltd.1)
Livingston,Scotland65.1%UnitedKingdom
Carl Zeiss Meditec Inc.1)
Dublin65.1%USA
Sales and service companies
Carl Zeiss Meditec Vertriebsgesellschaft mbHJena65.1%Germany
Carl Zeiss Meditec France S.A.S. LePecq65.1%France
Carl Zeiss Meditec Iberia SATresCantos(Madrid)65.1%Spain
Carl Zeiss Meditec Co., Ltd.Tokyo82.2%Japan
Microscopy
Carl Zeiss MicroImaging GmbH 1)
Jena100%Germany
Carl Zeiss Imaging Solutions GmbHMunich100%Germany
Sales and service companies
Carl Zeiss MicroImaging S.L.SantJustDesvern(Barcelona)100%Spain
Carl Zeiss MicroImaging Inc.Thornwood100%USA
Carl Zeiss MicroImaging Co., Ltd.Tokyo100%Japan
74
Major Subsidiaries and Associated CompaniesSharepercentagerelativetoentireGroup
September30,2009
Semiconductor Technology
Carl Zeiss SMT AG 1)
Oberkochen100%Germany
Carl Zeiss Laser Optics GmbH 1)
Oberkochen100%Germany
Carl Zeiss SMS GmbH 1)
Jena100%Germany
Carl Zeiss NTS GmbH 1)
Oberkochen100%Germany
NaWoTec GmbH 1)
Jena100%Germany
Carl Zeiss SMT Ltd.1)
Cambridge100%UnitedKingdom
Pixer Technology Ltd.1)
Karmiel100%Israel
Carl Zeiss SMT Inc.1)
Peabody,MA100%USA
Sales and service companies
Carl Zeiss SMT S.A.S.Nanterre100%France
Carl Zeiss SMT Pte. Ltd.Singapore100%Singapore
Industrial Metrology
Carl Zeiss Industrielle Messtechnik GmbH 1)
Oberkochen100%Germany
Junker & Partner GmbH 1)
Tholey75.1%Germany
Carl Zeiss 3D Automation GmbH 1)
Essingen51.1%Germany
Carl Zeiss IMT Corporation 1)
Minneapolis100%USA
Carl Zeiss IMT (Shanghai) Co. Ltd.1)
Shanghai100%People'sRepublicofChina
Sales and service companies
Carl Zeiss 3D Metrology Services GmbHAalen100%Germany
Dr. Wolf & Beck GmbH 2)
Wangen100%Germany
Carl Zeiss 3D Metrology Services GmbH StuttgartOstfildern72%Germany
Carl Zeiss Innovations- zentrum für Messtechnik GmbH 2)
Dresden51%Germany
Carl Zeiss Industrielle Messtechnik Austria GmbHGraz100%Austria
Carl Zeiss Quality Services s.r.l.Novara100%Italy
Carl Zeiss IMT Iberia S.L.U.TresCantos(Madrid)100%Spain
Saphir 3D S.à.r.l.SablésurSarthe76%France
P.S.M.C. S.à.r.l.LePecq100%France
Carl Zeiss Ölçüm Cihazlari Ticaret 2)
Istanbul80%Turkey
75
1)Productionunit(generallyhasownsalesarea)2)Notconsolidated3)consolidatedatequity4)Proportionofvotingrights
Consumer Optics/Optronics
Carl Zeiss Sports Optics GmbH 1)
Wetzlar100%Germany
Carl Zeiss Sport Optikai Hungaria Kft.1)
Mátészalka100%Hungary
Carl Zeiss Optronics GmbH 1)
Oberkochen100%Germany
Carl Zeiss Optronics (Pty.) Ltd.1)
Centurion70%SouthAfrica
Sales and service companies
Carl Zeiss Optical Inc.Chester100%USA
Eyeglass Lenses
Carl Zeiss Vision Holding GmbH 3)
Aalen50%4)
Germany
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOUR SERVICE F INANCIAL STATEMENTS MAJORSUBS ID IAR IES ANDASSOCIATEDCOMPANIES
76
Other affiliated companies
Carl Zeiss Jena GmbH 1)
Jena100%Germany
Carl Zeiss Financial Services GmbHOberkochen100%Germany
Zeiss-BelOMO OOO 1) 2)
Minsk60%Belarus
Carl Zeiss Inc.Thornwood100%USA
Carl Zeiss Suzhou Co., Ltd.SuzhouCity100%People'sRepublicofChina
Cross-Group sales and service companies
Carl Zeiss Argentina S.A.2)
BuenosAires100%Argentina
Carl Zeiss Pty. Ltd.NorthRyde100%Australia
Carl Zeiss N.V.-S.A.Zaventem100%Belgium
Carl Zeiss do Brasil Ltda.SãoPaulo100%Brazil
Carl Zeiss Shanghai Co. Ltd.Shanghai100%People'sRepublicofChina
Carl Zeiss OyTuusula100%Finland
Carl Zeiss S.A.S.LePecq100%France
Carl Zeiss Ltd.WelwynGardenCity100%UnitedKingdom
Carl Zeiss Far East Co. Ltd.Kowloon100%HongKong
Carl Zeiss India (Bangalore) Private LimitedBangalore100%India
Carl Zeiss S.p.A.Arese100%Italy
Carl Zeiss Co. Ltd.Tokyo100%Japan
Carl Zeiss Canada Ltd.Toronto100%Canada
Carl Zeiss d.o.o.2)
Zagreb100%Croatia
Carl Zeiss Sdn. Bhd.KualaLumpur100%Malaysia
Carl Zeiss de México S.A. de C.V.MexicoCity100%Mexico
Carl Zeiss (N.Z.) Ltd.Auckland100%NewZealand
Carl Zeiss B.V.Sliedrecht100%Netherlands
Carl Zeiss ASOslo100%Norway
Carl Zeiss GmbH Vienna100%Austria
Carl Zeiss Sp. z o. o.Posen100%Poland
Carl Zeiss Instruments s.r.l.2)
Bucharest100%Romania
Carl Zeiss ABStockholm100%Sweden
Carl Zeiss AGFeldbach100%Switzerland
Carl Zeiss Pte. Ltd.Singapore100%Singapore
ANASPEC (Pty.) Ltd.Gauteng/Johannesburg51%SouthAfrica
Carl Zeiss (Pty.) Ltd.Randburg100%SouthAfrica
Carl Zeiss Co. Ltd.Seoul100%SouthKorea
Carl Zeiss Co. Ltd.Bangkok49%Thailand
Carl Zeiss s.r.o.Prague100%CzechRepublic
Carl Zeiss Technika Kft. 2)
Budapest100%Hungary
Major Subsidiaries and Associated CompaniesSharepercentagerelativetoentireGroup
September30,2009
1)Productionunit(generallyhasownsalesarea)2)Notconsolidated
77
CarlZeissGroupConsolidated Financial Statements
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS
78
Consolidated Income Statement October 1, 2008 to September 30, 2009
Notes 2008/09 2007/08
EURthou EURthou
Sales revenues 7 2,101,158 2,730,716
Changeinfinishedgoodsandworkinprogress –27,995 30,041
Ownworkcapitalized 52,216 52,746
Total operating performance 2,125,379 2,813,503
Otheroperatingincome 8 115,037 122,219
Costofmaterials 9 801,277 987,647
Personnelexpenses 10 849,361 877,765
Depreciationofproperty,plantandequipment andamortizationofintangibleassets 11 140,178 134,082
Otheroperatingexpenses 12 510,905 588,196
Othertaxes 13 6,102 5,116
Result before interest and taxes (EbIT) –67,407 342,916
Resultfrominvestmentsaccountedforapplyingtheequitymethod 14 –71,931 –42,931
Interestincome 14 38,985 56,083
Interestexpenses 14 102,488 84,083
Otherfinancialresult 14 40,913 5,639
Financial result –94,521 –65,292
Result before taxes –161,928 277,624
Incometaxes 15 715 –99,440
Consolidated net result –161,213 178,184
Minorityinterestsinincome 20.152 21,154
Interestsoftheparentcompany‘sshareholderinincome –181,365 157,030
FINANCIAL STATEMENTS CONSOL IDATED INCOMESTATEMENT
79
Assets Notes Sept. 30, 2009 Sept. 30, 2008
EURthou EURthou
Noncurrent assets
Intangibleassets 16 293,752 312,858
Property,plantandequipment 17 537,192 555,414
Investmentsaccountedforapplyingtheequitymethod 18 2,841 6,467
Othernoncurrentfinancialassets 19 135,373 124,288
969,158 999,027
Deferredtaxes 15 178,988 145,987
Othernoncurrentnon-financialassets 20 18,448 16,836
1,166,594 1,161,850
Current assets
Inventories 21 770,287 829,003
Tradereceivables 22 438,864 515,462
Taxrefundclaims 14,764 9,389
Othercurrentassets 23 436,489 569,707
Securities 24 39,153 40,359
Cash/cashequivalents 25 580,736 464,865
2,280,293 2,428,785
3,446,887 3,590,635
Consolidated Balance Sheet as of September 30, 2009
Liabilities and equity Notes Sept. 30, 2009 Sept. 30, 2008
EURthou EURthou
Equity 26
Commonstock 120,000 120000
Additionalpaid-incapital 52,770 52,770
Consolidatedretainedearnings 705,897 904,885
Cumulativeotherreserves –40,068 –25,483
Minorityinterests 165,049 144,538
1,003,648 1,196,710
Noncurrent liabilities
Provisionsforpensionsandsimilarobligations 27 833,650 856,328
Othernoncurrentprovisions 28 100,362 88,649
Noncurrentfinancialliabilities 29 422,481 362,576
Othernoncurrentnon-financialliabilities 31 21,434 30,584
1,377,927 1,338,137
Deferredtaxes 15 58,568 73,494
1,436,495 1,411,631
Current liabilities
Currentprovisions 28 261,465 270,894
Currentfinancialliabilities 29 123,692 32,249
Tradepayables 30 102,850 155,964
Currentliabilitiesfromincometaxes 13,595 7,462
Othercurrentliabilities 31 505,142 515,725
1,006,744 982,294
3,446,887 3,590,635
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS CONSOL IDATEDBALANCE SHEET
80
Statement of Changes in Consolidated Equityduring the 2008/09 Fiscal Year1)
Common Additional ConsolidatedCumulativeotherreserves Equity Minority Consolidated stock paid-in retained Resultsof interests equity capital earnings Foreign measurement exchange offinancial translation instruments IAS392)
EURthou EURthou EURthou EURthou EURthou EURthou EURthou EURthouOctober 1, 2007 120,000 52,770 762,751 –35,555 4,159 904,125 136,684 1,040,809
Dividends – – –10,000 – – –10,000 –12,286 –22,286
Change in scope of consolidation – – 272 – – 272 –1,949 –1,677
Other changes – – –5,168 – – –5,168 1,874 –3,294
Consolidatednetresult – – 157,030 – – 157,030 21,154 178,184
Otherreserves – – – –3,102 9,015 5,913 –939 4,974
Consolidated comprehensive result – – 157,030 –3,102 9,015 162,943 20,215 183,158
September 30, 2008 120,000 52,770 904,885 –38,657 13,174 1,052,172 144,538 1,196,710
Dividends – – –10,000 – – –10,000 –5,612 –15,612
Change in scope of consolidation – – – – – – –516 –516
Other changes – – –7,623 – – –7,623 7,874 251
Consolidatednetresult – – –181,365 – – –181,365 20,152 –161,213
Otherreserves – – – 2,675 -17,260 –14,585 –1,387 –15,972
Consolidated comprehensive result – – –181,365 2,675 -17,260 –195,950 18,765 –177,185
September 30, 2009 120,000 52,770 705,897 –35,982 –4,086 838,599 165,049 1,003,648
1)Forfurtherdetailsofthechangesinequityseethe
NotestotheConsolidatedFinancialStatements2) Marketvaluationofavailable-for-salesecuritiesin
accordancewithIAS39
FINANCIAL STATEMENTS STATEMENTOF CHANGES IN CONSOL IDATEDEQUITY
81
2008/09 2007/08
EURthou EURthou
Additional information on the Consolidated Cash Flow Statement
Paymentsof
Incometaxes1) 46,391 127,007
Interest1) 14,221 13,795
Dividends2) 15,612 22,286
Proceedsfrom
Incometaxes1) 8,661 10,354
Interest1) 30,402 46,215
Dividends2) 497 820
1)consideredincashflowsfromoperatingactivities2)consideredincashflowsfromfinancingactivities
Consolidated Cash Flow StatementOctober 1, 2008 to September 30, 2009
Notes 2008/09 2007/08
EURthou EURthou
Consolidatednetresult –161,213 178,184
Depreciation/amortizationoffixedassetsnetofwrite-ups 16,17 139,805 133,291
Resultfrominvestmentsaccountedforapplyingtheequitymethod 18 71,931 42,931
Othermaterialnonoperatingincomeandexpenses(net) –13,076 31,507
Increaseofprovisionsforpensionsandsimilarobligations 27 10,850 7,394
Increase(lastyear:decrease)inotherprovisions 28 1,927 –14,554
Lossfromthedisposaloffixedassets(net) 16,17 440 353
Incomefromthedisposalofcurrentsecurities(net) –335 –966
Decrease(lastyear:increase)ininventories 21 58,775 –110,191
Decrease(lastyear:increase)inreceivables 22 65,723 –1,125
Changeindeferredtaxes 15 –50,700 –8,046
Changeinotherassets 60,649 –23,463
Decreaseinpayables 30 –52,780 –571
Changeinotherliabilities –30,038 31,324
Cash flows from operating activities 101,958 266,068
Proceedsfromthedisposalofproperty,plantandequipmentandintangibleassets 16,17 4,623 1,178
Purchasesofproperty,plantandequipmentandintangibleassets 16,17 –98,760 –140,404
Proceedsfromthedisposaloffinancialassets 16,17 2,865 4,322
Netcashoutflowfor(lastyear:inflowfrom)theacquisitionoffinancialassetsincludingfixed-terminvestmentsandsecuritiesmaturingin>90days –19,934 12,595
Netcashinflowfromthesale(lastyear:outflowfromtheacquisition)ofconsolidatedcompanies(netofcashacquiredamountingtoEUR0;lastyear:EUR2,422thou) 2,500 –62,037
InvestmentintoContractualTrustArrangementandotherplanassetsabroad 27 –29,830 –27,593
Cash flows from investing activities –138,536 –211,939
DividendtotheCarl-Zeiss-Stiftung 26 –10,000 –10,000
Paymentstoothershareholders –5,612 –12,286
Proceedsfrom(financial)loansacquired 192,349 6,219
Repaymentsof(financial)loansandbondsacquired(lastyear) –23,015 –29,637
Cash flows from financing activities 153,722 –45,704
Cash and cash equivalents provided by operating, investing and financing activities 117,144 8,425
Changesincashandcashequivalentsfromexchangeratemovementsandchanges inthescopeofconsolidation –1,273 –4,565
CashandcashequivalentsasofOctober1 464,865 461,005
Cash and cash equivalents as of September 30 580,736 464,865
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS CONSOL IDATEDCASHFLOWSTATEMENT
82
Notes to the Consolidated Financial Statements for the 2008/09 Fiscal Year
Principles and Methods
1 General Accounting Principles
CarlZeissAGisanon-listedstockcompanyincorporatedunder
Germanlaw,headquarteredatCarl-Zeiss-Strasse22,73447
Oberkochen,Germany,andoperatinggloballyintheMedical
andResearchSolutions,IndustrialSolutionsandLifestyle
Productssegments.CarlZeissAG'ssolestockholderisthe
CarlZeissStiftung(CarlZeissFoundation),Heidenheimander
BrenzandJena,Germany.
CarlZeissAGexercisestheoptionunderSection315aPara.3
GermanCommercialCode(HGB)whichallowsnon-capital
market-orientedcompaniestopreparetheirconsolidated
financialstatementsinaccordancewithInternationalFinancial
ReportingStandards,onthebasisoftheoptionforMember
StatesenabledbytheEUregulationofJuly19,2002.
TheconsolidatedfinancialstatementsofCarlZeissAG,
Oberkochen,comprisingtheConsolidatedIncomeStatement,
theConsolidatedBalanceSheet,theConsolidatedEquity
Statement,theConsolidatedCashFlowStatementandtheNotes
totheConsolidatedFinancialStatements,havebeenpreparedin
accordancewiththeInternationalFinancialReportingStandards
(IFRS)andtheinterpretationsoftheInternationalFinancial
ReportingInterpretationsCommittee(IFRIC),asapplicableinthe
EU,andthesupplementaryrulesapplicableunderSection315a
Para.1HGB.AllmandatorypronouncementsoftheInternational
AccountingStandardsBoard(IASB)havebeenobserved.
TheamendmentstoIAS39FinancialInstruments:Recognition
andMeasurementandIFRS7FinancialInstruments:Disclosures
permitanentitytoreclassifynon-derivativefinancialassetsout
ofthe‘fairvaluethroughprofitandloss’categoryintoother
categoriesinwhichfinancialinstrumentsaremeasuredat
amortizedcost.However,theCarlZeissGroupdidnotmakeuse
ofthisreclassificationoptioninthereportingperiod.
Inanumberofprojects,theIASBandtheIFRIChaveadopteda
numberofstandardsandinterpretationsandissuednew
standardsandinterpretationswhichareeffectiveforfiscalyears
beginningonorafterJanuary1,2009.CarlZeissAGhasnot
appliedthesestandardsaheadoftime.
Thefollowingnewaccountingstandardswereendorsedbythe
EuropeanUnioninthereportingperiod:
InMay2008,theIASBissueditsfirstomnibusofamendmentsto
itsstandards,ImprovementstoIFRSs,primarilywithaviewto
removinginconsistenciesandclarifyingwordingin20existing
standards.Unlessotherspecificprovisionshavetobeapplied,
theamendmentsareeffectiveforfiscalyearsbeginningonor
afterJanuary1,2009.
Revision of IAS 1 Presentation of financial statements
TherevisedIAS1wasissuedinSeptember2007.Differences
haveessentiallyresultedfromtheseparatepresentationof
changesinequityresultingfromtransactionswithownersand
otherchanges.Inaddition,thetitlesofsomecomponentsof
financialstatementshavechanged.Theamendedstandardmust
beappliedinfiscalyearsbeginningonorafterJanuary1,2009.
Amendment to IAS 23 Borrowing costs
Theamendmentappliestothecapitalizationofborrowingcosts
directlyrelatedtotheacquisition,constructionorproductionof
aqualifyingasset.Thealternativetreatmentofrecognizing
borrowingcostsimmediatelyinincomehasthusbeendiscontin-
ued.Thechangeiseffectiveforfiscalyearsbeginningonorafter
January1,2009.
Amendment to IAS 27 Consolidated and separate financial
statements
IAS27(rev.2008)specifiesthattheacquisitionorsaleof
minorityintereststhatdoesnotleadtoalossofcontrolmustbe
includedinequitywithoutaffectingnetincome.Thechangeis
effectiveforfiscalyearsbeginningonorafterJuly1,2009.
Amendment to IFRS 1 First-time adoption of International
Financial Reporting Standards and IAS 27 Consolidated and
separate financial statements
Thestandardsproviderulestoeasethemeasurementof
investmentsinthecourseoftheinitialpreparationofstatutory
financialstatementsaccordingtoIFRS.Thechangesapplyforthe
firsttimeinfiscalyearsbeginningonorafterJuly1,2009.
83
IFRS 8 Operating segments
Thechangesapplyforthefirsttimeinfiscalyearsbeginning
onorafterJuly1,2009.Thisstandardneednotbeapplied
bytheCarlZeissGroup,sinceasanon-capitalmarket-oriented
companyitisnotobligedtopreparesegmentreporting.
Amendment to IFRS 2 Share-based payment
Thechangesrelatetotransactionsinwhichanemployee
receivesaconsiderationequivalenttothevalueoftheequity
instrumentsoftheparentcompanyorsubsidiaryandthe
subsidiaryisnotobligedtopaycash.Thechangesapplyforthe
firsttimeinfiscalyearsbeginningonorafterJanuary1,2010.
Revision of IFRS 3 Business combinations and IAS 27
Consolidated and separate financial statements
RevisedversionsofIFRS3andIAS27wereissuedinJanuary
2008,concludingtheBusinessCombinationsIIprojectwhich
startedinNovember2001andwhichwascarriedoutbythe
IASBinclosecooperationwiththeUSstandardsetter.Major
changesarerelatedtotheapplicationofthepurchasemethod.
Therevisedstandardsareeffectiveforfiscalyearsbeginningon
orafterJuly1,2009.
Amendments to IFRS 7 Financial instruments: disclosures
Theamendmentsrequireenhanceddisclosuresaboutfairvalue
measurementsandliquidityrisk.Amongotherthings,the
amendmentsintroduceathree-levelhierarchyforfairvalue
measurementdisclosures.Thishierarchyreferstotheinputsto
thevaluationtechniquesthatareusedtomeasurefairvalueand
explainstheextenttowhichobservablemarketinputsare
availableinordertodeterminethefairvalue.Inaddition,the
amendmentsclarifyandenhancetheexistingrequirementsfor
thedisclosureofliquidityrisk.Thisisaimedatclearlystatingthe
scopeofliabilitiestobeincludedinthematurityanalysis.The
changesareeffectiveforfiscalyearsbeginningonorafter
January1,2009.
Amendments to IFRS 32 Financial instruments: presentation
Thechangesrelatetotheclassificationofsubscriptionrights.Itis
nowspecifiedthatcertainsubscriptionrightsaswellasoptions
andwarrantsinforeigncurrencies(i.e.currenciesotherthanthe
functionalcurrency)mustbecarriedhenceforthasequityandno
longerasderivativeliabilitiesinthebalancesheetoftheissuerto
whoseequityinstrumentstherightsrelate.Thecurrencyin
whichtheexercisepriceisdenominatedisirrelevanthere.The
changesapplyforthefirsttimeinfiscalyearsbeginningonor
afterFebruary1,2010.
TheEuropeanUnionendorsedthefollowingnewIFRICinterpre-
tationsinthereportingperiod:
Amendments to IFRIC 9 Reassessment of embedded
derivatives and IAS 39 Financial instruments: recognition
and measurement
Anentityisrequiredtoassesswhetheranembeddedderivative
hastobeseparatedfromahostcontractwhentheentity
reclassifiesahybrid(combined)financialassetoutofthe‘fair
valuethroughprofitandloss’categoryaccordingtothe
amendmenttoIAS39ofOctober2008.Ifthederivativehasto
beaccountedforseparately,butitsfairvaluecannotbereliably
measured,orifanentitycannotcarryoutthetest,thetotal
hybridfinancialinstrumentmustremainintheabove-mentioned
category.Thechangesareeffectiveretroactivelyforfiscalyears
beginningonorafterJune30,2009.Theamendmentstillhasto
beendorsedbytheEuropeanUnionunderthecomitology
procedure.
IFRIC 12 Service concession arrangements
IFRIC12appliestoconcessionoperatorsandexplainshowto
accountfortheobligationsundertakenandrightsreceivedin
serviceconcessionarrangementsunderexistingIFRSs.IFRIC12is
effectiveforfiscalyearsbeginningonorafterMarch23,2009.
Thisinterpretationhasnoimpactontheconsolidatedfinancial
statementsoftheCarlZeissGroup.
IFRIC 13 Customer loyalty programmes
IFRIC13explainshowtoaccountforcustomerloyaltyaward
creditprogramsoperatedbymanufacturersorserviceproviders
themselvesorthirdparties.IFRIC13iseffectiveforfiscalyears
beginningonorafterJanuary1,2009.Therehasbeennoimpact
onthemeasurementprinciplesoftheCarlZeissGroup.
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IFRIC 18 Transfers of assets from customers
IFRIC18clarifiestherequirementsofIFRSforagreementsin
whichanentityreceivesfromacustomeranitemofproperty,
plantandequipmentwhichtheentitymustusetoconnectthe
customertoanetworkortoprovidethecustomerwithongoing
accesstoasupplyofgoodsorservices.Theinterpretation
addressesinparticularthecriteriafortherecognitionof
contributionsfromcustomersandthetimingandamountofthe
recognitionofrevenuesfromsuchtransactions.IFRIC18is
effectiveforfiscalyearsbeginningonorafterJuly1,2009.
Theconsolidatedfinancialstatementshavebeencompiledin
euros.Unlessstatedotherwise,allamountsaregiveninthou-
sandsofeuros(EURthou).
Forthesakeofclarity,individualitemsarecombinedinthe
consolidatedbalancesheetandtheconsolidatedincome
statementandshownseparatelyinthenotes.Theconsolidated
incomestatementispreparedinaccordancewiththenatureof
expensesmethod.
TheconsolidatedfinancialstatementspreparedasofSeptember
30,2009,andthecorporatemanagementreportwereapproved
bytheExecutiveBoardonDecember22,2009,forsubmissionto
theSupervisoryBoard.
ThelistofsharesheldbytheGroup,theconsolidatedfinancial
statements,thecorporatemanagementreportandthereportof
theSupervisoryBoardwillbepublishedintheelectronic
Bundesanzeiger.
2 Scope of Consolidation
TheconsolidatedfinancialstatementsincludeCarlZeissAGand
allofitssubsidiaries,jointventuresandassociatedcompanies.
Subsidiariesarecompaniesthatareunderthedirectorindirect
controlofCarlZeissAGandareincludedinfullinthescopeof
consolidation.Jointventuresarecompaniescontrolledjointlyby
CarlZeissAGtogetherwithothercompanies.Associated
companiesarecompaniesoverwhichCarlZeissAGexercisesa
significantinfluencebutwhichareneithersubsidiariesnorjoint
ventures.Associatedcompaniesandjointventuresareincluded
intheconsolidatedfinancialstatementsinaccordancewiththe
equitymethod.
IFRIC 14 The limit on a defined benefit asset, minimum
funding requirements and their interaction
IFRIC14providesguidanceontheinteractionbetweenan
existingobligationasofthebalancesheetdatetopayadditional
sumsintoapensionplan(minimumfundingrequirement)and
theprovisionsofIAS19ontheupperlimitofapositivebalance
betweentheplanassetsandthedefinedbenefitobligation(asset
ceiling).IFRIC14isapplicableintheEUnolaterthanthestartof
thefirstfiscalyearbeginningonorafterJanuary1,2009.
IFRIC 15 Agreements for the construction of real estate
IFRIC15explainshowtoaccountforthesaleofpropertiesand
clarifieswhenandhowrevenueandrelatedexpensesfromthe
saleofrealestateshouldberecognizedifanagreement
betweenadeveloperandabuyerisreachedbeforeconstruction
iscomplete.First,theinterpretationprovidesguidelineson
howtodeterminewhetheranagreementiswithinthescopeof
IAS11orIAS18.Furthermore,itdefineswhatdisclosuresare
requiredinthenotes.IFRIC15iseffectiveforfiscalyears
beginningonorafterJanuary1,2010.
IFRIC 16 Hedges of a net investment in a foreign operation
IFRIC16providesguidanceontheaccountingforahedgeofa
foreignoperation,including:
–Whatistherisktobehedged?
–Whatisthemaximumamountthatcanbehedged?
–Whichentitywithinthegroupisallowedtoholdthehedging
instrument?
–Howshouldtheaccountingbehandledupondisposalofthe
foreignoperation?
IFRIC16iseffectiveforfiscalyearsbeginningonorafterJune
30,2009.Thisinterpretationhasnoimpactontheconsolidated
financialstatementsoftheCarlZeissGroup.
IFRIC 17 Distributions of non-cash assets to owners
IFRIC17clarifiesthatanentityshouldmeasurethedividend
payableatthefairvalueofthenetassetstobedistributedand
thatanentityshouldrecognizethedifferencebetweenthe
dividendpaidandthecarryingamountofthenetassets
distributedinprofitandloss.Therecognitionoftheobligation
andanychangestothefairvalueoftheassetinquestionmust
berecordedinequity.IFRIC17iseffectiveforfiscalyears
beginningonorafterJuly1,2009.
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TheconsolidatedfinancialstatementscontainCarlZeissAGand
34(lastyear:33)domesticand64(lastyear:63)foreign
companieswhosebusinessactivitiesarecontrolledbyCarlZeiss
AGorwhereitdirectlyorindirectlyholdsamajorityvoting
interest.Thecompaniesareincludedintheconsolidated
financialstatementsfromthetimeatwhichCarlZeissAG
obtainedthepowerofcontrol.
Inaddition,asinthepreviousyear,twodomesticjointventures
andoneforeigninvestmenthavebeenaccountedforapplying
theequitymethod.
Thescopeofconsolidationchangedasfollowsinthereporting
period:
3 Business Combinations
Business combinations in the 2008/09 fiscal year
EffectiveOctober1,2008,CarlZeiss3DMetrologyServices
GmbH,Aalen,Germany,acquiredanadditional1%oftheshares
inCarlZeiss3DAutomationGmbH,Essingen,Germany,ata
purchasepriceofEUR0.2million.Thistransactionincreasedthe
shareheldbyCarlZeiss3DMetrologyServicesGmbHto51.1%,
sothatCarlZeiss3DAutomationGmbHwasincludedinfullin
theconsolidatedfinancialstatementsforthefirsttimeinthe
reportingperiod.Theobjectsofthecompanyaretheplanning,
development,design,assemblyandcommissioningofautomat-
edsystemsaswellastheirdistribution,particularlyforcoordi-
natemeasuringtechnologyandrelatedfields,andallother
associatedtransactions.
Theacquisitionofthesharesinfiscalyear2008/09hadno
materialimpactontheassetsandliabilitiesoftheCarlZeiss
Group.AssetstotalingEUR3,879thousandandliabilitiesofEUR
2,372thousandwererecognized.Theinitialconsolidation
resultedingoodwillintheamountofEUR184thousand.The
consolidatedfinancialstatementscontainsalesrevenuesofEUR
5,715thousandandaresultbeforeinterestandtaxesofEUR
619thousandfromCarlZeiss3DAutomationGmbH.
Thepurchasepriceallocationconductedfortheinitialconsolida-
tionisbasedonprovisionalestimatesbythecompanywhich
couldthereforechangeuptothefinalassessmentandauditof
thefairvaluesoftheacquiredintangibleassets,deferredtaxes
andgoodwill.
OnNovember5,2008,CarlZeissMeditecInc.,Dublin,USA,
concludedapurchasecontractwiththeOEMsupplierWelch
AllynInc.,NewYork,USA,fortheacquisitionofallassets
associatedwiththemanufactureoftwoproductsforglaucoma
diagnosis.Theassetsacquiredaremainlyindustrialproperty
rightsandcopyrights,productionrights,softwareanddesign
know-how.TheacquisitioncostscametoEUR11,688thousand,
includingexpensesofEUR120thousand.
AssetstothevalueofEUR9,334thousandandnoliabilitieswere
addedthroughthispurchase.TheidentifiedgoodwillofEUR
2,354thousandresultingfromtheacquisitionoftheassetsand
Germany Other countries Total
30SEP2008 34 63 97
Additionsinthereportingperiod 1 3 4
Disposalsinthereportingperiod – 2 2
30 SEP 2009 35 64 99
Thefollowingcompanieswerewithdrawnfromthescopeof
consolidationinthereportingperiod:
–CarlZeissSMTGmbH,St.Gallen,Switzerland
(liquidatedinfiscal2008/09)
–CarlZeissMicroImagingAISInc.,AlisoViejo,USA
(liquidatedinfiscal2008/09)
Thefollowingfourcompanieswereincludedintheconsolidated
financialstatementsforthefirsttimeinthereportingperiod:
–CarlZeiss3DAutomationGmbH,Essingen,Germany
(firstinclusion)
–P.S.M.C.S.à.r.l.,LePecq,France(firstinclusion)
–Saphir3DS.à.r.l.,SablésurSarthe,France(firstinclusion)
–CarlZeissIndia(Bangalore)PrivateLimited,Bangalore,India
(newformation)
Thechangestothescopeofconsolidationinthereporting
periodshownherehadnomaterialeffectsonthenetassets,
financialpositionorresultsofoperationsoftheCarlZeissGroup.
Anyeffectswhichappearrelevanttoindividualitemsare
explainedattheappropriatepoints.
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liabilitiesismainlyrelatedtotheexpectedsynergyeffectsfrom
theintegrationofthetwoproductionlinesintotheexisting
OphthalmicSystemsbusiness.Theacquisitionhadnoother
materialimpactontheassetsandliabilitiesoftheCarlZeiss
Group.Thefairvaluesoftheidentifiedassetsandliabilitiesatthe
timeoftheacquisitionandthecorrespondingcarryingamounts
shouldbeconsideredprovisional.
Theconsolidatedfinancialstatementsincludesalesrevenues
amountingtoEUR5,498thousandandaresultbeforeinterest
andtaxesofEUR-514thousandfromtheacquisition.Assuming
thattheacquisitionhadtakenplaceatthestartofthefiscalyear,
salesrevenueswouldhavebeenEUR5,998thousandandthe
resultbeforeinterestandtaxesEUR-560thousand.
Business combinations in the 2007/08 fiscal year
Thefollowingcompanieswereacquiredinthe2007/08fiscalyear:
EffectiveOctober1,2007,CarlZeissMeditecAG,Jena,Germany,
acquired100%ofthesharesin*Acri.TecAG,basedinHennigs-
dorf,Germany,throughasubsidiary.Thecompanyspecializesin
innovativeimplants(intraocularlenses,IOL)andotherproducts
(viscoelasticsolutionsandproductsforvitreoretinalsurgery)for
ophthalmicsurgery.Asofthebalancesheetdate,thecompany's
namewas*Acri.TecGmbH.CarlZeissAGholdsonly65.1%of
theequityofCarlZeissMeditecAG.
LikewiseeffectiveOctober1,CarlZeiss3DMetrologyServices
GmbH,Aalen,acquired75.1%oftheequityofJunker&Partner
GmbH,Tholey,Germany.Junker&PartnerGmbHisapartnerto
theautomotiveandaviationindustriesspecializinginthedesign,
developmentandproductionofsophisticatedmeasuringdevices
forautomotiveparts,thuscomplementingtheportfolioofthe
IndustrialMetrologybusinessgroup.
TheSouthAfricansubsidiaryCarlZeiss(Pty.)Ltd.,Randburg,
SouthAfrica,acquiredamajoritystake(51.0%oftheshares)in
AnaspecCC,Gauteng,SouthAfrica,inMay2008.Thecompany,
whichhasbranchofficesinSouthAfricaandAustralia,isnow
knownasANASPEC(Pty.)Ltd.andwillofferbothlocalmarkets
andsomedevelopingcountriestechnicalservicesandcarefor
thefast-growingcustomerbaseoftheNanoTechnologySystems
(NTS)division.ANASPEC(Pty.)Ltd.alsoofferstechnicalservices
fortheproductsoftheIndustrialMetrologybusinessgroupand
someproductsoftheMedicalSystemsbusinessgroupinSouth
AfricaandthesouthernAfricancountries.
ACarlZeissSMTAGsubsidiaryacquiredPixerTechnologyLtd.,
Karmiel,Israel,asofAugust28,2008.Theacquiredcompany
developsuniquesolutionsforthecorrectionoferrorsinphoto
masksforsemi-conductorproductiononaglobalbasis.Withthis
move,theSemiconductorTechnologybusinessgroupaimsto
furtherstrengthenitspositionasaleadingtechnologyprovider
forthesemiconductorindustrywithlithographyandlaseroptics,
particle-beamsystemsandqualityassuranceandprocess
optimizationsystems.PixerTechnologyLtd.willbeintegrated
intotheSemiconductorMetrologySystems(SMS)Division.
4 Principles of Consolidation
Theconsolidatedfinancialstatementsarebasedontheannual
financialstatementsofthesubsidiariesincludedintheconsoli-
datedfinancialstatementspreparedasofSeptember30,2009,
inaccordancewithuniformaccountingpolicies.
SinceMay14,2002,capitalconsolidationbythepurchase
methodinaccordancewithIFRS3Business Combinationshas
beenappliedupontheinitialconsolidationofsubsidiaries.
Accordingly,theidentifiableassetsandliabilitiesarerecognized
attheirfairvaluesontheacquisitiondate.Minorityinterests
(sharesheldbyotherstockholders)areconsequentlyassessedat
theamountoftheirshareinthefairvaluesoftheassetsand
liabilities.Theacquisitioncostsofthesharesacquiredareoffset
againsttheGroup'sshareofthesubsidiary'sequityatfairvalue.
Ifadifferenceremainsontheassetssideafterthecalculation,it
isrecognizedasgoodwillunderintangibleassets.Liabilities-side
differencesarerecognizedthroughtheincomestatement.
ForacquisitionsbeforeMay14,2002,theoptioninIFRS1.15
wasusedtotheeffectthatthesebusinesscombinationswere
accountedforintheconsolidatedfinancialstatementsinaccord-
ancewithIFRSsimilarlytotheHGBaccountingmethod.Trans-
actions under common controlareaccountedforatbookvalue.
Theresultsofthesubsidiariesacquiredinthereportingperiod
areincludedintheconsolidatedincomestatementfromthetime
whenpowerofcontroliseffectivelyobtained.
Asubsidiaryisremovedfromthescopeofconsolidationatthe
timewhenCarlZeissAGlosescontrolofthecompany.
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Theequitysharesheldbyoutsideshareholdersarerecognizedin
theconsolidatedfinancialstatementswithintheconsolidated
equitycapitalunderminorityinterests.
CompaniesundercommoncontrolwithinthemeaningofIAS31
Interests in Joint Venturesareaccountedforapplyingtheequity
method,inaccordancewiththealternativetreatmentinIAS31.38.
WhentheequitymethodinaccordancewithIAS28Investments
in associatesisapplied,thesharesarerecognizedatpurchase
costinthebalancesheetuponinitialassessment.Thesecostsare
adjustedinsubsequentvaluationsforchangesintheGroup's
shareintheequity(netassets)aftertheacquisitiondateandfor
lossesduetoimpairment.
Receivablesandpayablesbetweenconsolidatedcompaniesare
eliminated.Anyresultingcurrencydifferencesareincludedin
cumulativeotherreserves.
Intercompanyprofitsandlossesresultingfromgoodsand
servicestransactionsareeliminated.
Theincometaxaspectsoftheconsolidationaredealtwithby
applyingdeferredtaxation.
Intheconsolidatedincomestatement,intercompanysalesand
otherinternalgainshavebeenoffsetagainstcorresponding
expensesorhavebeenreclassifiedaschangesininventoryor
ownworkcapitalized.
5 Foreign Exchange Translation
Theconsolidatedfinancialstatementsaredenominatedineuros,
thefunctionalandreportingcurrencyoftheGroup.Inthe
individualstatements,receivablesandpayablesinforeign
currenciesarevaluedattherateapplicableonthedateofthe
transaction.Changesinexchangeratesareaccountedforby
revaluationattheaveragerateofexchangeasofthebalance
sheetdate,theresultinggainsorlossesarerecognizedinthe
consolidatedincomestatementunderfinancialresults.
Theannualfinancialstatementsofconsolidatedsubsidiaries
preparedinforeigncurrenciesaretranslatedonthebasisofthe
conceptofthefunctionalcurrencyinaccordancewithIAS21
The Effects of Changes in Foreign Exchange Rates.Thismeans
thatallassetsandliabilitiesaretranslatedintoeurosataverage
ratesofexchangeasofthebalancesheetdate,buttheequityis
convertedathistoricrates.
Theincomeandexpensesintheincomestatementsareconvert-
edatannualaverageratesofexchange.
Differencesarisingfromtheforeignexchangetranslationare
includedundercumulativeotherreserveswithinequity,outside
profitorloss.
TheconsolidatedfinancialstatementsofSeptember30,2009
and2008werebasedonthefollowingexchangeratesfor
foreigncurrencieswithamaterialinfluence:
Rates as of balance sheet date Average rates
EUR 1 = 30 SEP 2009 30 SEP 2008 2008/09 2007/08
UnitedKingdom GBP 0.9100 0.7961 0.8754 0.7636
Japan JPY 131.2650 150.5600 128.6271 161.6225
USA USD 1.4665 1.4340 1.3529 1.5037
6 Principles of Accounting and Valuation
Theannualfinancialstatementsofthecompaniesincludedinthe
consolidationhaveallbeenpreparedinaccordancewiththe
accountingandvaluationprinciplesapplicabletotheGroup.In
caseswherethelocalfinancialstatementsofindividualcompa-
niesdepartfromtheseprinciples,thenecessaryadjustments
havebeenmade.
Thesameprinciplesofaccountingandvaluationhavebeen
appliedtothisyearandlastyear.
Forsubsidiarieswhosebalancesheetdatediffersfromthatof
theGroup,interimfinancialstatementsareusedasabasisfor
consolidation.
Use of estimates
InordertopreparefinancialstatementsaccordingtoIFRS,
estimatesarerequiredwhichinfluencenotonlythevaluationof
theassetsandliabilities,thenatureandscopeofcontingent
liabilitiesandconcretereferencestopurchasecommitmentsas
ofthebalancesheetdate,butalsotheamountofincomeand
expenditureinthereportingperiod.Theassumptionsand
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Thecostsdirectlyattributabletoadevelopment,including
reasonabledevelopment-relatedoverhead,arerecognizedas
manufacturingcosts.Capitalizeddevelopmentcostsare
amortizedbythestraight-linemethodfromthetimeatwhich
thedevelopmentsarereadyforuseovertheexpectedproduct
lifecycle,orinrelationtotheunitvolumeslaiddowninthe
relevantbusinessplans.Researchcostsanddevelopmentcosts
thatcannotbecapitalizedarerecognizedasexpensesatthe
timetheyareincurred.
Depreciationisbasedonthefollowingrangesfortheuseful
lives:
Useful life
Patents,industrialpropertyrights,licenses,software 2to20years
Developmentcosts 2to10years
Otherintangibleassets 2to15years
estimateschieflyrelatetotheapplicationofstandardusefullife
periodsacrosstheGroupaswellasthemeasurementparameters
fortheimpairmentteststobeperformed,particularlyforthe
goodwillrecognized.Inaddition,estimateshavetobemadein
ordertoassessthevalueoftheinventory,thecollectabilityof
receivables,accountingforandvaluingprovisionsandthe
possibilityofrealizingfuturetaxrelief.Theactualresultsmay
differfromtheseestimates.Changesarerecognizedinthe
incomestatementwhenbetterinformationbecomesavailable.
Specificvaluationrisksareexplainedindetailinthenotestothe
relevantbalancesheetitems.
Intangible Assets
Purchasedandself-createdintangibleassetsareonlycapitalized
accordingtoIAS38Intangible Assetsifitisprobablethatfuture
economicbenefitsareattributabletotheassetsandthepurchase
ormanufacturingcostoftheassetcanbemeasuredreliably.
Theseassetsarerecognizedinitiallyatcost(purchaseormanu-
facturingcost).Subsequently,intangibleassetswithafinite
usefullifearemeasuredatcostlesscumulativeamortizationand
impairment.Theamortizationiscalculatedusingthestraight-line
methodovertheeconomicusefullifeoftheasset.
Intangibleassetswithanindefiniteusefullifeandgoodwillare
notamortizedandarethereforeassessedatcostlessimpairment
losses.
Developmentcostshavebeencapitalizedwhereverthecriteria
statedinIAS38.57werefulfilledonacumulativebasis.The
criteriatobefulfilledincludethefactthatthecompletionofthe
intangibleassetinquestionmustbetechnicallyfeasiblesothatit
canbeavailableforsaleoruse.Furthermore,theintentionand
theabilitytocompletetheintangibleassetandtouseitorsellit
inthefuturearerequired.Inaddition,itmustbepossibletouse
orselltheself-createdintangibleasset.Aneconomicbenefitto
thecompanymustalsoarisefromthis.
ThecompaniesoftheCarlZeissGroupcarryoutdevelopment
thatstretchestechnologytoitslimits,settingnewtechnological
benchmarks.Forthisreason,onlyasmallproportionofdevelop-
mentcostsiscapitalizedintheCarlZeissGroup,sincethe
capitalizationcriteriaareonlycumulativelyfulfilledatarelatively
latepointintime.
Useful life
Buildings 2to45years
Technicalequipmentandmachinery 2to21years
Otherequipment,plantandofficeequipment 1to23years
Property, plant and equipment
Property,plantandequipmentaremeasuredinaccordancewith
IAS16Property, Plant and Equipment,atcostlessaccumulated
depreciationandimpairment.Themanufacturingcostofself-
createdassetsincludesnotonlydirectcosts,butalsoreasonable
overheadcostsformaterialsandproduction.Borrowingcosts
arenotincluded.Theassetsaredepreciatedbythestraight-line
methodovertheireconomicusefullives.
Depreciationisbasedonthefollowingrangesfortheusefullives:
Impairment of intangible assets and property, plant and
equipment
IAS36Impairment of Assetsdemandsareviewasofevery
balancesheetdateofwhetherthereareanyindicationsof
impairmentinthevaluesofassetscarriedinthebalancesheet.
Ifsuchindicationsareidentifiableorifanannualreviewis
mandatory,asinthecaseofintangibleassetswhichdonothave
afiniteusefullifeandgoodwill,animpairment testiscarried
89
out.Therecoverableamountoftheassetorofacashgenerating
unit(CGU)isestimatedtodeterminewhetheritsbookvalue
needstobeadjusted.Therecoverableamountisthehigherof
theindividualasset’sorcashgeneratingunit’sfairvalueless
coststosellanditsvalueinuse.Todeterminethevalueinuse,
theestimatedfuturecashflowsarediscountedtothepresent
valuebyarisk-adjustedrateaftertaxusingthediscountedcash
flowmethod.Thisrisk-adjusteddiscountratelieswithinarange
of7.7%to9.2%fortheCarlZeissGroup,dependingonthe
CGU.Iftheanalysisisperformedbeforetax,therangeforthe
risk-adjusteddiscountrateisfrom8.3%to9.8%.Thediscount
ratesaredeterminedbytheWeightedAverageCostofCapital
(WACC)method.Thedetailedplanningperiodforthefuture
cashflowsisfivefiscalyears.Forthefiscalyearsthereafter,the
cashflowforthefifthyearofdetailedplanningiscarriedforward
withnogrowthfactor.Thevalueofanassethastobeadjusted
downwardsifthebookvalueoftheassetorcashgeneratingunit
exceedsthehigherofthefairvaluelesscoststosellandthe
valueinuse.Animpairmentlossisrecognizedimmediatelyinthe
incomestatement.
Animpairmentlossrecognizedinpreviousyearscanbecorrected
intheincomestatementifthereasonsfortheimpairmentno
longerexist,forallassetsexceptgoodwill.However,thewrite-
upcanonlybemadetotheextentthatthevalueoftheasset
doesnotexceedthebookvaluethatwouldhavearisenthrough
depreciationiftheimpairmenthadnotbeenrecognizedin
previousyears.Write-upsofgoodwillareprohibited.
Government grants
Governmentgrantsarerecognized,inaccordancewithIAS20
Accounting for Government Grants and Disclosure of Govern-
ment Assistance,onlywhenthereisreasonableassurancethat
theentitywillcomplywithanyconditionsattachedtothegrant
andthegrantwillbereceived.Investmentgrantsarealwaysrec-
ognizedasaccrualsontheliabilitiessideandamortizedoverthe
lifeoftheasset.Profit-andloss-relatedgrantsarerecognizedin
theperiodinwhichthecorrespondingexpensesareincurred.
Leases
Leasesareclassifiedasfinanceleasesiftheytransfersubstantially
alltherisksandrewardsincidenttoownershiptothelessee.All
otherleasesareclassifiedasoperatingleases.
Leasedassetswhichneedtobeclassifiedasfinanceleases
accordingtoIAS17Leases,sothatineconomictermsthey
actuallytaketheformofpurchasesofassetswithlong-term
financing,arerecordedatthecommencementoftheleaseterm
atthelowerofthefairvalueoftheassetorthepresentvalueof
theminimumleasepayments.Thecorrespondingliabilityis
recognizedinthebalancesheetasaleaseliability.Theassetis
depreciatedovertheshorterofthelifeoftheassetorthelease
termifitisnotcertainwhetherthelesseewillobtainownership
attheendofthelease.
Financeleasepaymentsareapportionedbetweenthefinance
chargeandthereductionoftheoutstandingliability,inaccor-
dancewiththeirfinancingcharacter.Thefinancechargeis
recognizedasaninterestexpenseintheincomestatement.
Foroperatingleases,theleasepaymentsarerecognizedas
expensesintheperiodinwhichtheyareincurred.
AssetsunderoperatingleaseswherecompaniesoftheCarlZeiss
Grouparethelessorarerecognizedintheassets.Suchoperating
leasearrangementsmainlyexistinconnectionwithbuildings.
IfcompaniesoftheCarlZeissGroupactaslessorsinthecontext
offinanceleases,receivablesarecapitalizedatthetimeofinitial
recognitionintheamountofthenetinvestmentvalue.
Financial instruments
Afinancialinstrumentisacontractthatgivesrisetoafinancial
assetofoneentityandafinancialliabilityorequityinstrumentof
anotherentity.
AccordingtoIAS39Financial Instruments: Recognition and
Measurement,financialinstrumentsfallintothefollowing
categories:
–Financialassetsandliabilitiesvaluedatfairvaluethroughprofit
orlossorfinancialassetsandliabilitiesheldfortrading;
–Available-for-salefinancialassets;
–Held-to-maturityinvestmentsand
–Loansandreceivables
Financialinstrumentsarerecognizedatthetimewhenthe
obligationtopurchaseorsellanassetisenteredinto.Theyare
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measuredatfairvalueoramortizedcost,dependingontheir
classification.
Thefairvaluegenerallycorrespondstothemarketvalue.Ifthere
isnoactivemarket,thefairvalueisdeterminedbyadequate
valuationmethods(e.g.discountedcashflowsoroptionpricing
models).
Theamortizedcostisthepurchasecosttakingintoaccount
repayments,impairmentsandtheamortizationofapremiumor
discount.
ThefairvalueoptiondescribedinIAS39isnotusedbythe
CarlZeissGroup.
Thefinancialassetsheldfortradingaresolelyderivativefinancial
instruments,whichareusedintheCarlZeissGroupmainlyinthe
contextofinterestandcurrencyhedging.Theyarevaluedatfair
value.Themethodofrecognizingprofitandlossdependson
whetherthereisahedgingrelationshipbetweenthehedging
instrumentandthehedgeditem,i.e.whetherso-calledhedge
accountingapplies.Ifnot,changesinthefairvaluearerecog-
nizedthroughprofitandloss.
Ifhedgeaccountingisapplied,arelationshipbetweenthe
hedginginstrumentandthehedgeditemiscreated.Hence,the
offsettingeffectsofchangesinthefairvaluesofthehedging
instrumentandthehedgeditemarerecognizedsimultaneously
inthenetresultfortheyear.Thecriteriaforhedgeaccounting
are:thehedgeinstrumentishighlyeffectiveincompensating
changesinthefairvalueorthecashflowofthehedgeditem,
theeffectivenessofthehedgecanbereliablydeterminedand
thehedgingrelationshipmustbeformallydesignatedand
documentedattheinceptionofthehedge.Thismustinclude
identifyinganddocumentingtheriskmanagementobjective,the
hedgeditemaswellasthehedginginstrument.Furthermore,
aprospectiveeffectivenesstestisperformedattheinceptionof
thehedgeandthereafteraprospectiveaswellasretrospective
effectivenesstestareperformedonaquarterlybasisinorder
todocumentthatthehedgeishighlyeffectiveincompensating
changesinthefairvalueorthecashflowofthehedgeditem.
HedgeaccountingisonlyusedintheCarlZeissGroupinthe
contextofinterestratehedgesinordertoavoidcashflow
fluctuationsresultingfromchangesininterestrates.Changesin
thefairvalueofthehedginginstrumentwhichrelatetothe
effectivepartofthehedgearerecognizedincumulativeother
reserves,aseparateitemwithinequity,lessdeferredtaxes.The
accumulatedgainsandlossesonthehedginginstrumentthat
havebeenpostedinthecumulativeotherreservesarefinally
recognizedintheconsolidatedincomestatementinthesame
periodastheoffsettinglossesandgainsonthehedgeditem,i.e.
whenfinancialexpensesorincomearerecognizedintheincome
statement.Theineffectivepartofthehedgeisrecognized
immediatelyintheperiodinwhichitisincurred.Theamounts
accumulatedinequityareaccountedforinprofitandlossinthe
periodinwhichthehedgedunderlyingtransactionisrecognized
intheconsolidatedincomestatement,inotherwordswhen
financialexpensesorincomearerecognizedintheincome
statement.
Otherinvestmentsaswellassecuritiesandholdingsinequityor
bondfundsareclassifiedas‘available-for-sale’andaretherefore
measuredatfairvalue.Ifthereisnoactivemarketforinvest-
mentssothatthemarketvaluecannotbeestimatedreliably,
thesearecarriedatamortizedcost.Lowerfairvaluesareapplied
ifindicated.Unrealizedprofitsandlossesarerecordedoutside
profitandlossinaseparateitemunderequity,takingdeferred
taxationintoaccount.Iftheassetisdisposedoforintheevent
ofaprobablypermanentimpairmentofmarketvaluetoalevel
belowcost,thechangesinmarketvaluearerecordedasaprofit
orloss.Increasesinthemarketvalueofequityinstrumentsare
alwaysrecordedoutsideofprofitorloss,evenifapriorallow-
anceforimpairmenthasbeenpostedtotheincomestatement.
Held-to-maturityinvestments,loansandreceivablesandcurrent
andnoncurrentfinancialliabilitiesaremeasuredatamortized
cost.Thesearegenerallyloans,tradereceivablesandcurrentand
noncurrentotherfinancialassetsandliabilities.Interest-freeor
low-interestloansarecarriedattheirpresentvalueandmarked
upovertheperiodtotheirmaturity.
Inventories
Rawmaterials,suppliesandmerchandiseforresalearevaluedat
cost,whichisalwaysdeterminedbytheaverage-costmethod.
Unfinishedandfinishedproductsarevaluedatmanufacturing
cost.Thisincludesnotonlythecostofmaterialsandwages,but
alsoreasonablefactoryoverheadcostsformaterialsand
91
production,production-relateddepreciationandproduction-
relatedadministrativecosts.Borrowingcostsarenotcapitalized.
Anallowanceismadeforimpairmentoninventoriesifthecostis
higherthantheexpectednetrealizablevalue.Inventory,sales
andrevenuerisksarethereforetakenadequatelyintoaccount.
Receivables and other assets
Receivablesandotherassetsarecarriedattheirnominalvalueor
atcost.Perceivabledefaultrisksaretakenintoaccountby
individualadjustments.
Customized manufacturing orders
Customizedmanufacturingordersarecarriedaccordingtothe
percentage-of-completion(PoC)method.Apercentageofsales
revenuesaswellasthesalescostsincurred,basedoncontracts
concludedwithcustomers,arerecognizedinaccordancewith
thelevelofcompletionasofthebalancesheetdateassoonas
theoutcomeofaproductionordercanbereliablyestimated.
Completionisdeterminedonthebasisoftheprojectcosts
incurredasofthebalancesheetdateinrelationtothetotal
costsoftheproject(cost-to-costmethod).Thesalesrecognized
inaccordancewiththePoCmethodarerecordedundertrade
receivablesinthebalancesheet,afterdeductionofadvance
paymentsreceived.
Iftheoutcomeofaproductionordercannotbereliablyestimat-
ed,revenuesareonlyrecordedintheamountofthecosts
incurredfortheorderwhichareprobablyrecoverable.Expected
lossesonanorderarerecognizedimmediatelyandinfullasan
expense.
Cash and cash equivalents
Cashinhandandatbankandallfundsoriginallyrepayable
withinthreemonthsarerecognizedasliquidassets.
Pension plan provisions and other post-employment benefits
ThecompaniesoftheCarlZeissGrouphavedifferentpension
plans.Moreover,foreignsubsidiarieshaveenteredintocommit-
mentstoprovideacertainlevelofmedicalcareafteremploy-
menthasterminated.
Paymentsfordefinedcontribution-basedcommitmentsand
contributionstostatutorypensioninsuranceschemesare
recordedasexpensesfortheperiodinwhichtheyareincurred.
Obligationsarisingfromdefinedbenefitplansarecalculatedby
theprojectedunitcreditmethodtakingexpectedfuturein-
creasesinsalariesandpensionbenefitsintoaccount,inaccor-
dancewithIAS19Employee Benefits.
Theprovisionsforpensionsandotherpost-employmentbenefits
ofthedomesticcompaniesarebasedonactuarialcomputations
andthe2005GmortalitytablescompiledbyProfessorDr.Klaus
Heubeck.Atforeignsubsidiaries,provisionsforpensionsand
otherpost-employmentbenefitsarerecognizedonthebasisof
country-specificparameters.
Differencesbetweenthedefinedbenefitobligation(DBO)and
externalplanassetsandthepensionprovisionsinthebalance
sheetmainlyresultfromactuarialgainsorlossesinconnection
withchangesintheportfolioandthedivergenceofrealtrends
fromtheparametersassumedinthecalculation.
Inrecognizingtheseactuarialgainsorlosses,theCarlZeiss
Groupusesthecorridormethodinaccordancewiththe
alternativetreatmentunderIAS19.Inotherwords,actuarial
gainsandlossesthatlieoutsidearangeof10%ofthehigherof
theDBOorthefairvalueoftheplanassetsatthebeginningof
thefiscalyearareamortizedovertheexpectedaverageremain-
ingserviceperiodofthebeneficiaries.
Theservicecostsarerecognizedunderpersonnelexpenses,the
interestcomponentoftheallocationstoprovisionsandthe
expectedreturnontheplanassetsarerecordedinfinancial
results.
Deferred compensation
TheGroupallowspermanentemployeestouseuntaxedearnings
towardsoldageprovisions.Onthebasisofindividualcontracts,
everyemployeecanconvertamaximumofthreemonths’salary.
Theamountsconvertedarepaidintoapensionliabilityinsurance
policyandtheassociatedbenefitsarepledgedtotheemployees.
Theclaimagainsttheinsurancepolicymaturesatthesametime
astheobligationtowardstheemployees.Shouldthefuture
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benefitsfromthepensionliabilityinsurancebehigherthanthe
agreedbenefits,theemployeesreceivethesurplus.
Theamountofthebenefitdependsontheageoftheemployee
atthetimetheincomeisconvertedandontheemployee’s
decisionastowhetherhewishestohavethedeferredcompen-
sationpaidoutasalumpsumorasapension.Inadditionto
thesimpleconversionofincome,thedeferredincomesystem
includesentitlementstoinvaliditybenefitorsurvivingdepen-
dents’pension,dependingonthemodelselected.
Other provisions
InaccordancewithIAS37Provisions, Contingent Liabilities and
Contingent Assets,presentobligationstothirdpartiesresulting
frompasteventsarerecognizedunderotherprovisionsif
settlementisexpectedtoresultinanoutflowofresourcesof
whichtheamountcanbemeasuredwithreasonablecertainty.
Provisionsarecarriedatfullcost.
Ifthediscounteffecthasamaterialimpactontheamountofthe
provisionandtheremainingperiodoftheobligationscanbe
determinedwithcertainty,noncurrentprovisionsarerecognized
attheirdiscountedpresentvalue.Insuchcases,theaccretionof
theprovisionovertimeisrecordedasaninterestexpense.
Provisionsforpartialretirementschemes,anniversarybonuses
anddeathbenefitaredeterminedandvaluedonthebasisof
actuarialopinionsorsimilarparameters.
Restructuring provisions
Restructuringprovisionsarerecognizedifadecisionona
restructuringprogramhasbeentakenortheeconomicnecessity
forsuchaprogramexistsbeforethebalancesheetdate,anda
restructuringplanhasbeendrawnupbeforethebalancesheet
datewhichgivesdetailsofthebusinessareaorlocationaffected,
theapproximatenumberofemployeesaffectedandtheperiod
ofimplementation,andtheemployeesconcernedortheir
representativeshavebeeninformed.Theamountofthe
provisionwillincludeallexpensesdirectlyrelatedtotherestruc-
turingprogramwhichwillnecessarilybeincurredinthecourse
ofrestructuringandwhicharenotrelatedtothepresentor
futureactivitiesofthecompany.
Provisions for warranties
Warrantyorguaranteeobligationsmayariseforlegalreasonsor
fromcontractualtermsorgoodwill.Provisionsarerecognizedfor
expectedpaymentsunderwarrantyorguaranteeobligations.
Useofsuchprovisionsistobeexpectedifthewarrantyperiod
hasnotyetexpired,ifwarrantyexpenseshavebeenincurredin
thepastorifthereisreasontobelievethatactualwarrantycases
willarise.Dependingonthesituation,thewarrantyriskis
derivedfromeitherindividualestimatesorpastempiricalvalues
andprovisionsaremadeaccordingly.
Provisions for litigation risks
Provisionsarerecognizedforrisksarisingfromlitigationinwhich
companiesoftheCarlZeissGrouparethedefendants.They
coverthecoststhatthecompanywillincurifthecourtfinds
againstitandifthereisagreaterchanceofanegativethana
positivedecision.Thissumincludespaymentstobemadebythe
company,inparticulardamagesandcompensation,aswellas
theexpectedcostsoflitigation.Wherethecompanyisthe
plaintiff,provisionsareonlymadeforthecostsoflitigation.
Deferred taxes
Deferredtaxesarerecognizedonthebasisoftheliabilitymethod
inaccordancewithIAS12Income Taxes.
Deferredtaxassetsandliabilitiesarerecognizedforalltemporary
differencesbetweenthecarryingamountinaccordancewith
IFRSandthetaxbalancesheetvaluesofthecompaniesincluded,
aswellasforconsolidationmeasures.
Inaddition,deferredtaxassetsarerecognizedforfuturebenefits
arisingfromunusedtaxlossesandunusedtaxcreditstothe
extentthattheiruseisprobable.
Thecarryingamountofdeferredtaxassetsisreviewedasof
eachbalancesheetdateandreducedtotheextentthatitisno
longerprobablethatsufficienttaxableprofitwillbeavailableto
allowthebenefitofthosedeferredtaxassetstobeutilized.
Anysuchreductionisalsoreviewedannuallyandsubsequently
reversedtotheextentthatitbecomesprobablethatsufficient
taxableprofitwillbeavailableforthebenefittobeutilized.
Deferredtaxliabilitiesarenotrecognizediftheyarisefrom
temporarydifferencesrelatingtoinvestmentsinsubsidiaries
93
whereCarlZeissisabletocontrolthetimingofthereversalof
thedifferencesanditisprobablethatthereversalwillnotoccur
intheforeseeablefuture.
Deferredtaxesrelatingtotemporarydifferencesthatare
recognizeddirectlyinequityarealsorecordedunderequityand
notshownintheincomestatement.
Deferredtaxassetsanddeferredtaxliabilitiesarenettedoffin
thebalancesheetiftheenterprisehasthelegalrighttosettleon
anetbasisandthetaxesareleviedbythesametaxingauthority
onthesameentity.Accordingly,deferredtaxassetsanddeferred
taxliabilitiesarealsonettedoffwithinthecombinedtaxreturns.
Liabilities
Liabilitiesarerecognizedinthebalancesheetatamortizedcost
usingtheeffectiveinterestmethod.
Recognition of revenue and other income
Thecompanyrecognizesrevenuefromthesaleofgoodsonthe
basisofappropriatecontractsassoonasallpartsoftheproduct
havebeendelivered,riskhaspassedtothebuyer,paymenthas
beenagreedorcanbedetermined,nosignificantobligations
towardsthecustomerareoutstandingandcollectionofthe
receivablecanbeconsideredprobable.Salesrevenuesare
measuredafterdeductionofalldiscounts,pricereductionsand
customerbonuses.Ifthesaleincludessubsequentservicesor
maintenancecontracts,therevenuepertainingtotheseis
recognizedintheperiodinwhichitisearnedandinaccordance
withthestageofcompletionoftheservicesorprorataoverthe
periodofthecontract.
Iftherighttoreturngoodsisagreedinthecaseofproductsales,
therevenueisonlyrecognizedifthecompanyhasappropriate
historicdataavailable.Onthebasisofthisdata,thevalueof
probablereturnscanbeestimatedandrecognizedasanexpense
againstrevenueintheperiodinwhichtheexpenseisincurred.
Interestincomeisrecordedovertimeusingtheeffectiveinterest
method.Dividendsarenotrecognizeduntilthelegalrightto
paymentarises.Iflicensefeesarepayableundermulti-period
contracts,therevenueisgenerallyrecognizedonastraight-line
basis.
Recognition of expenses
Ingeneral,expensesarerecordedwherethereisaprobabilityof
anoutflowofeconomicresourcesfromthecompany.
Researchanddevelopmentcostsarerecordeddirectlyas
expensesfortheperiod,unlesstheycanbecapitalized.Grants
towardsresearchanddevelopmentcostsareoffsetagainst
expensesiftheentitlementarisesforworkthathasalreadybeen
performedandthereforepaidfor.
Thecompanyisliabletowardsthebuyerfortheflawless
functioningoftheproductssoldduringthecontractualwarranty
period.Appropriateprovisionsforwarrantiesarerecordedunder
otheroperatingexpensesatthetimewhentherevenuefromthe
salesisrecognized.
Notes to the Consolidated Income Statement
7 Sales Revenues
Sumsinvoicedtocustomersforgoodsandservicesarereported
insalesrevenues.Deductionssuchasdiscountsareoffsetagainst
thesesales.
Salesrevenuesweregeneratedwithproductsandtechnicaland
otherservicesforbiomedicalresearchandmedicalsystems,
systemsolutionsforthesemiconductor,automotiveand
mechanicalengineeringindustries,planetariumsandhigh-end
consumerarticlessuchascameralensesandbinoculars.
Thesalesrevenuescanbebrokendownbygeographicmarkets
asfollows:
2008/09 2007/08
EURthou % EURthou %
Germany 364,146 17 448,679 16
Europe(excludingGermany) 730,805 35 1,331,977 49
America 530,141 25 529,844 19
Asia,otherregions 476,066 23 420,216 16
2,101,158 100 2,730,716 100
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8 Other Operating Income
Thisitemincludeson-chargedoverhead,researchanddevelop-
mentgrantsandincomefromrentalsandleases.
Otheroperatingincomealsoincludes:
Theincreaseintheallowancesforimpairmentoninventoriesis
mainlyduetothedifficulteconomicsituationinthe2008/09
fiscalyear.
10 Personnel Expenses
2008/09 2007/08
EURthou EURthou
Incomefromlicenseagreements 7,527 9,179
Insurancecompensation 2,393 1,137
Releaseofotherprovisions 34,139 28,518
Gainsfromthedisposalofnoncurrentassets 738 815
Write-upsofnoncurrentassets 373 791
Releaseofvalueadjustmentsonreceivables 4,603 2,485
11 Depreciation of Property, Plant and Equipment and
Amortization of Intangible Assets
2008/09 2007/08
EURthou EURthou
Costofrawmaterials,consumablesandsupplies,andofpurchasedmaterials 741,294 924,379
Allowancesforimpairmentoninventories 13,512 4,124
Costofpurchasedservices 46,471 59,144
801,277 987,647
2008/09 2007/08
EURthou EURthou
Wagesandsalaries 700,669 724,609
Socialsecuritycosts 128,608 121,341
Pensioncosts 19,627 31,274
Otherbenefits 457 541
849,361 877,765
2008/09 2007/08
EURthou EURthou
Amortizationofintangibleassets 45,012 35,560
Depreciationofproperty,plantandequipment 95,166 98,522
140,178 134,082
ofwhichimpairmentsinaccordance withIAS36 15,241 107
Intotal,theotheroperatingincomecontainsincomefrom
outsidetheperiodunderreviewintheamountofEUR39,851
thousand(lastyear:EUR32,609thousand).
Insurancecompensationmainlycomprisesthereimbursementof
shippingdamages.
Theincomefromthereleaseofotherprovisionsmainlyincludes
thereleaseofprovisionsforrisksresultingfromtradeandother
risks.
Asintheyearbefore,thegainsfromthedisposalofnoncurrent
assetsshownforthereportingperiodmainlyresultfromthesale
oftechnicalequipmentandmachinery.
GovernmentgrantsfortheyearofEUR6,066thousand(last
year:EUR7,362thousand)werewrittentoincome.
9 Cost of Materials
EUR26,554thousand(lastyear:EUR23,389thousand)ofthe
amortizationofintangibleassetsrelatestopatents,industrial
propertyrights,licensesandsoftware,EUR14,410thousand
(lastyear:EUR8,799thousand)todevelopmentcostsand
EUR4,048thousand(lastyear:EUR3,372thousand)toother
intangibleassets.EUR8,735thousandoftheimpairmentsin
accordancewithIAS36relatetointangibleassetsand
EUR6,506thousandtoproperty,plantandequipment.
12 Other Operating Expenses
Otheroperatingexpensesconsistprimarilyofadministration
costs,salescosts,professionalfeesandallocationstoother
provisions.
95
Alsoincludedare:
2008/09 2007/08
EURthou EURthou
Lossesfromthedisposalofnoncurrentassets 1,178 1,168
Maintenance 35,345 41,523
Representatives’commissions 30,356 40,209
Licensefees 12,310 11,449
Warrantycosts 13,895 22,049
13 Other Taxes
Othertaxesconsistoftaxexpensesandgainsarisingindepen-
dentlyofincome.
14 Financial Result
Result from investments accounted for applying the equity
method
Thenotesonthissubjectaretobefoundinsection18“Invest-
mentsaccountedforapplyingtheEquityMethod.”
Net interest income
InvestmentincomeincludesincomeofEUR4,921thousand
(lastyear:EUR352thousand)attributabletosubsidiaries.
Theotherfinancialresultsalsoincludethefollowingexpenses
andincome:
2008/09 2007/08
EURthou EURthou
Other interest and similar income 38,985 56,083
attributabletosubsidiaries 218 287
Interest and similar expenses 102,488 84,083
attributabletosubsidiaries 794 75
interestcosts(pensions) 69,313 62,564
–63,503 –28,000
2008/09 2007/08
EURthou EURthou
Investmentincome 5,314 1,121
Incomefromprofittransferagreements 133 332
Expensesfromlossabsorption 3,033 3,485
Taxeschargedtosubsidiaries 74 99
2,488 –1,933
Thechangesinincomeandexpensesfromexchangerate
differencesandincomeandexpensesfromchangesinmarket
valueisduetothehighvolatilityofcurrencyparitiesinthe
reportingperiod.
Theotherfinancialresultsforthereportingperiodalsoinclude
incomefromthesaleofaforeigninvestmentintheamountof
EUR9,048thousand.Furthermore,animpairmentofEUR7,314
thousand(lastyear:EUR21,420thousand)isrecognizedin
theotherfinancialresults.Thisrelatestoafinancialassetwhich
isunconnectedwiththecompany’soperatingactivitiesandis
thereforeshownunderthisitem.
15 Income taxes
TheincometaxesincludeGermanandforeignincometaxes,the
releaseofprovisionsfortaxes,taxrefundsanddeferredtaxes.
Theincometaxescanbebrokendownasfollowsaccordingto
theirorigin:
2008/09 2007/08
EURthou EURthou
Expenses/incomefromexchangeratedifferences –2,420 11,585
Income/expensesfromchangesinmarketvalue 5,025 –4,442
Expectedreturnonplanassets(pensions) 24,708 26,400
Depreciationoffinancialassets 129 658
Incomefromthedisposalofcurrentsecurities 335 966
Theinterestcostsforpensionshavetobeviewedinconnection
withtheexpectedreturnonplanassetsshownbelowinother
financialresults.Thebalanceofthesetwofiguresrepresentsthe
CarlZeissGroup’snetfinancingexpensesforpensions.
Other financial results
Results from investments
2008/09 2007/08
EURthou EURthou
Currenttaxexpenseslesstaxrefundsandreleaseoftaxprovisions 44,652 109,405
Deferredtaxexpenses – –
Deferredtaxincome 45,367 9,965
Income taxes – 715 99,440
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Deferredtaxesarecalculatedonthebasisofthestatutoryrates
oftaxthatapplyorthatwillveryprobablyapplyintheindividual
countriesattheexpectedtimeofrealization.Thecurrent
corporateincometaxrateinGermanyis15.0%.Takinginto
accountthesolidaritysurchargeandthedifferenttradetaxrates,
thetaxratesfordomesticcompaniesrangedfrom27.7%to
33.0%(unchangedfromlastyear).Theseratesformthebasisfor
calculatingthecurrenttax.
Therateapplicabletothetaxreconciliationaccountisa
consolidatedtaxrateof31.1%(unchangedfromlastyear).
ThenominaltaxratesapplicableoutsideGermanyinthe
reportingperiodliebetween10.0%and43.0%
(lastyear:15%-44.2%)
Theincometaxexpensesdonotincludeanyincomeorexpenses
arisinginconnectionwithchangestoaccountingpoliciesin
accordancewithIAS8Accounting Policies, Changes in Account-
ing Estimates and Errors.
ThedeferredtaxassetsandliabilitiesasofSeptember30canbe
assignedtoindividualbalancesheetitemsasfollows:
30 SEP 2009 30 SEP 2008
Assets Liabilities Assets Liabilities
EURthou EURthou EURthou EURthou
IntangibleAssets 784 26,187 764 31,908
Property,plantandequipment 5,554 66,232 5,788 70,229
Othernoncurrentassets 20,776 33,820 17,586 35,806
Inventories 23,578 7,736 22,568 5,257
Receivablesandothercurrentassets 12,189 21,310 14,608 18,700
Noncurrentliabilities 140,640 2,724 155,043 2,753
Currentliabilities 69,988 8,100 47,961 14,242
Retainedearnings – 2,083 – 1,740
Taxlosscarryforwards 35,836 – 3,052 –
Total deferred taxes 309,345 168,192 267,370 180,635
Impairment 20,733 – 14,242 –
Netting 109,624 109,624 107,141 107,141
Deferred taxes (net) 178,988 58,568 145,987 73,494
2008/09 2007/08
EURthou EURthou
Earningsbeforeincometaxes –161,928 277,624
Expected income tax expenses (= 31.1% x earnings before income taxes; last year: = 31.1% x earnings before income taxes) – 50,360 86,341
Differencesarisingfromdifferenttaxrates 12,708 –10,843
Effectsofchangesintaxrates –470 –353
Effectsofresultsfrominvestmentsaccountedforapplyingtheequitymethod 22,371 13,352
Effectsofnon-deductibleexpenses 3,020 12,567
Effectsoftax-freeincome –3,887 –6,379
Effectsunrelatedtotheaccountingperiod –276 1,478
Other 16,179 3,277
Actual income tax expenses – 715 99,440
Asofthebalancesheetdate,theCarlZeissGrouphasunused
taxlosscarryforwardsavailabletooffsetagainstfutureprofits.
DeferredtaxassetsamountingtoEUR35,836thousand(last
year:EUR3,052thousand)asofthebalancesheetdatewillbe
formedfortheusabletaxlosscarryforwards.Theincreasearises
mainlyfromthedeferredtaxassetsfromtaxlosscarryforwards
fortheGermantaxscopeofconsolidationintheamountofEUR
32,700thousandduetotheloss-makingpositioninthefiscal
year.InadditiontoGermany,usabletaxlosscarryforwardswere
alsocapitalizedinthefollowingcountries:France,Austria,Spain,
SwedenandJapan(lastyear:Germany,France,Austriaand
Japan).
TherearelosscarryforwardsintheamountofEUR53,575thousand
(lastyear:EUR17,948thousand).Mostofthesecanbeoffset
forlongerthanfiveyearsoraretotallyunforfeitable.Theseloss
carryforwardswereclassifiedasprobablyunusableasofthe
balancesheetdate.
ConsolidationhasresultedinEUR14,807thousandofdeferredtax
assets(lastyear:EUR13,789thousand)andEUR41,034thousand
ofdeferredtaxliabilities(lastyear:EUR54,740thousand).
Thereconciliationoftheexpectedincometaxexpensesbasedon
theresultbeforetaxesonincomeataconsolidatedtaxrateof
31.1%,asinthepreviousyear,forthereportingperiodof
EUR–50,360thousand(lastyear:EUR86,341thousand)andthe
actualtaxexpensesshownintheconsolidatedincomestatement
isasfollows:
97
Afiveyearperiodwastakenasthebasisforthecapitalizationof
deferredtaxassetsastaxlosscarryforwardsintheGermanscope
ofconsolidationfortaxpurposes.Duetothistimerestriction,
thelosscarryforwardsfullydeferredinthereportingperiodhad
tobeadjustedattheparentcompanyonthecorporatelevel.
Theitementitledothersessentiallycontainstheamountofthis
adjustment.
Notes to the Consolidated Balance Sheet
16 Intangible Assets
Thegoodwill,intheamountofEUR169,002thousand(lastyear:
EUR166,524thousand),issubjectedtoanimpairmenttestevery
yearatthelevelofthecashgeneratingunits.
Thecashflowsusedforthecalculationarebasedondetailed
planswithaplanninghorizonoffiveyears.Forthesubsequent
fiscalyears,thecashflowforthelastyearofdetailedplanningis
carriedforward.Nogrowthfactorwasassumedhere.The
discountratesappliedareweightedaveragecostsofcapitalafter
taxesbetween7.7%and9.2%(8.3%to9.8%beforetaxes),
dependingonthecashgeneratingunit.
Likelastyear’s,theimpairmenttestsinthereportingperioddid
notleadtoanyallowancesagainstthegoodwillonthebalance
sheet.
Thefollowingtableshowsthemostimportantgoodwillitems
carriedintheconsolidatedbalancesheetpersegment.
ThechangeingoodwillfromtheacquisitionsofALISCorp.,
LDTInc.,SMTPte.Ltd.andPixerTechnologiesresultsfromthe
valuationofforeigncurrencyinaccordancewithIAS21.47.
Apartfromtheregisteredtrademarkswithabookvalueof
EUR817thousand(lastyear:EUR836thousand)whichwere
capitalizedduringthepurchasepriceallocationofLDTInc.,
theGroupdoesnotshowanyfurtherintangibleassetswithan
indefiniteusefullife.Theusefullifewasdefinedasindefinite
becausepermanentusecanbeassumeduntilmorereliable
informationisobtained.
AtotalofEUR284million(lastyear:EUR321million)was
investedintoresearchanddevelopmentinthereportingperiod.
Ofthetotalamount,proprietarydevelopmentexpensesinthe
amountofEUR6,507thousand(lastyear:EUR10,245thousand)
ofthetotalwerecapitalized,sincethecriteriaofIAS38weremet.
Onedomesticsubsidiaryusessoftwareunderleasingagreements
thatareclassifiedasfinanceleasesinaccordancewithIAS17,
witheconomicownershipoftheassetbeingassignedtothe
lessee.SoftwarewithanetbookvalueofEUR17thousand(last
year:EUR534thousand)iscarriedunderintangibleassetsinthe
consolidatedbalancesheetasaresultoftheseleases.
Goodwill
Transaction 30 SEP 2009 30 SEP 2008 Segment
EURmill EURmill
AcquisitionofIOLTECH 49.5 49.5 Medicaland ResearchSolutions
Reverseacquisition MedicalandCarlZeissMeditecAG 10.4 10.4 ResearchSolutions
AcquisitionofP.A.L.M. 7.8 7.8 Medicaland ResearchSolutions
AcquisitionofLDTInc. 6.6 6.8 Medicaland ResearchSolutions
Acquisitionof*Acri.Tec 5.3 5.3 Medicaland ResearchSolutions
Acquisitionof MedicalandCarlZeissMicroImagingAISInc. 2.2 2.2 ResearchSolutions
AssetDealWelchAllynInc. 2.4 – Medicaland ResearchSolutions
AcquisitionofPixerTechn. 27.0 26.7 IndustrialSolutions
AcquisitionofNaWoTec 22.2 22.2 IndustrialSolutions
AcquisitionofALISCorp. 20.1 20.6 IndustrialSolutions
AcquisitionofCarlZeiss3DAalen 5.7 5.7 IndustrialSolutions
AcquisitionofSMTPte.Ltd. 2.1 2.2 IndustrialSolutions
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Patents, industrial property rights, Other licenses, Development intangible software Goodwill costs assets Total
EURthou EURthou EURthou EURthou EURthou
Purchase/manufacturing costs Oct. 1, 2007 171,866 135,397 40,738 19,389 367,390
Changeinscopeofconsolidation 15,466 34.347 – 12,210 62,023
Additions 7,218 – 10,245 4,160 21,623
Disposals 1,493 – – 1,275 2,768
Transfers 4,345 – – –4,328 17
Foreignexchangedifferences 345 –274 – 16 87
Sept. 30, 2008 197,747 169,470 50,983 30,172 448,372 Amortization/impairment Oct. 1, 2007 67,946 2,963 18,091 8,756 97,756
Changeinscopeofconsolidation 421 – – 162 583
Additions 23,389 – 8,799 3,372 35,560
Disposals 1,023 – – 1,466 2,489
Write-ups 63 – – – 63
Transfers 1 – – – 1
Foreignexchangedifferences 4,210 –17 – –27 4,166
Sept. 30, 2008 94,881 2,946 26,890 10,797 135,514
Book values Sept. 30, 2008 102,866 166,524 24,093 19,375 312,858 Purchase/manufacturing costs Oct. 1, 2008 197,747 169,470 50,983 30,172 448,372
Changeinscopeofconsolidation 1,033 3,542 – 6,840 11,415
Additions 4,194 426 6,507 6,221 17,348
Disposals 780 – – 6 786
Transfers 4,637 – – –4,637 –
Foreignexchangedifferences –6,514 –1,525 –106 –532 –8,677
Sept. 30, 2009 200,317 171,913 57,384 38,058 467,672 Amortization/impairment Oct. 1, 2008 94,881 2,946 26,890 10,797 135,514
Changeinscopeofconsolidation 116 – – – 116
Additions 26,554 – 14,410 4,048 45,012
Disposals 635 – – – 635
Write-ups – – – – –
Transfers – – – – –
Foreignexchangedifferences –5,716 –35 –45 –291 –6,087
Sept. 30, 2009 115,200 2,911 41,255 14,554 173,920
Book values Sept. 30, 2009 85,117 169,002 16,129 23,504 293,752
99
Land and equivalent rights and Other Advance buildings including Technical equipment, payments and buildings on land equipment and plant and office construction owned by third parties machinery equipment in progress Total
EURthou EURthou EURthou EURthou EURthou
Purchase/manufacturing costs Oct. 1, 2007 402,996 407,828 531,730 21,588 1,364,142
Changeinscopeofconsolidation 2,298 8560 4,312 237 15,407
Additions 16,942 33,602 45,059 23,178 118,781
Disposals 1,232 10,071 20,113 346 31,762
Transfers 2,009 2,769 12,732 –17,527 –17
Foreignexchangedifferences 460 –230 –536 3 –303
Sept. 30, 2008 423,473 442,458 573,184 27,133 1,466,248 Amortization/impairment Oct. 1, 2007 153,684 288,839 393,836 – 836,359
Changeinscopeofconsolidation 385 2,680 2,368 – 5,433
Additions 10,575 31,955 55,992 – 98,522
Disposals 983 9,613 18,550 – 29,146
Write-ups – 1 – – 1
Transfers 45 –1,314 1,268 – –1
Foreignexchangedifferences 194 –113 –413 – –332
Sept. 30, 2008 163,900 312,433 434,501 – 910,834
Book values Sept. 30, 2008 259,573 130,025 138,683 27,133 555,414 Purchase/manufacturing costs Oct. 1, 2008 423,473 442,458 573,184 27,133 1,466,248
Changeinscopeofconsolidation 24 571 1,104 – 1,699
Additions 14,136 20,282 31,595 15,399 81,412
Disposals 292 4,302 10,697 323 15,614
Transfers 1,255 –3,711 23,567 –21,111 –
Foreignexchangedifferences 775 25 –1,171 114 –257
Sept. 30, 2009 439,371 455,323 617,582 21,212 1,533,488 Amortization/impairment Oct. 1, 2008 163,900 312,433 434,501 – 910,834
Changeinscopeofconsolidation 1 239 298 – 538
Additions 11,134 27,398 56,634 – 95,166
Disposals 196 1,911 7,210 – 9,317
Write-ups – – – – –
Transfers 167 –4,667 4,500 – –
Foreignexchangedifferences 125 –5 –1,045 – –925
Sept. 30, 2009 175,131 333,487 487,678 – 996,296
Book values Sept. 30, 2009 264,240 121,836 129,904 21,212 537,192
17 Property, Plant and Equipment
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS NOTES TOTHE F INANCIAL STATEMENTS
100
30 SEP 2009 30 SEP 2008
EURthou EURthou
Landandbuildings 123,712 125,979
Technicalequipmentandmachinery 20,330 21,720
Otherequipment,plantandofficeequipment 1,137 1,605
Country Stockholding
30 SEP 2009 30 SEP 2008
CarlZeissVisionHoldingGmbH Germany 48% 48%
AdvancedResearchInstituteGmbH Germany 49% 49%
TCZPte.Ltd. Singapore 40% 40%
Thebookvaluesincludethefollowingamountsfromfinance
leaseswiththeCarlZeissGroupasthelessee:
Thebookvaluesaboveincludeonedomesticproductionfacility
whichwasclassifiedunderIAS17asafinanceleaseandis
carriedintheconsolidatedbalancesheetasofthebalancesheet
datewithabookvalueofEUR131,269thousand(lastyear:
EUR135,727thousand).Furthermore,asale-and-lease-back
transactionbyaUSsubsidiaryisalsoclassedasafinanceleasein
accordancewithIAS17,sothattheland,buildingsandimprove-
mentscontinuetobeonthebalancesheetofthelesseeand
depreciatedthere.TheyarecarriedatabookvalueofEUR6,952
thousand(lastyear:EUR7,139thousand).Sale-and-lease-back
transactionswerealsoconcludedfortechnicalequipmentand
machineryandotherequipment,plantandofficeequipmentin
thereportingperiod.ThesearecarriedatEUR3,378thousand
andEUR353thousandintheabovebookvalues.
ThetechnicalequipmentincludesassetsofEUR2,094thousand
fromfinanceleasesinwhichtheCarlZeissGroupactsasthe
lessor.ThegrossvalueofthereceivableswasEUR2,655
thousandasofthebalancesheetdate.
Furtherdetailsoftheleasesaretobefoundinsection29
FinancialLiabilities.
Property,plantandequipmentwithanetbookvalueof
EUR5,631thousandaresubjecttorestraintsondisposalorserve
ascollateralforliabilities.
TheGrouphadenteredintocontractualobligationsof
EUR5,940thousandforthepurchaseofproperty,plantand
equipmentasofthebalancesheetdate.
18 Investments Accounted for Applying the
Equity Method
CarlZeissAGhasvaluedoneassociatedcompanybytheequity
methodintheseconsolidatedfinancialstatements.Inaddition,
itssharesinCarlZeissVisionHoldingGmbHandtheAdvanced
ResearchInstituteGmbH,whichrepresentjointventuresin
accordancewithIAS31,arealsocarriedinaccordancewiththe
equitymethodonthebasisoftheirconsolidatedorindividual
financialstatementsusingthealternativetreatmentpermittedby
IAS31.38.
TheCarlZeissGroupholds50%ofthevotingstockofCarlZeiss
VisionHoldingGmbH,Aalen,Germany.
Byashareholders’resolutionofNovember10,2008,acash
capitalincreasetotalingEUR35milliontookplaceatCarlZeiss
VisionHoldingGmbH,Aalen,inthesamemonth.Thejoint
ventureshareholders,CarlZeissAGandtheprivateequity
investorEQT,contributedfundsonafifty-fiftybasis.CarlZeiss
VisionManagementBeteiligungsGmbH&Co.KG,Oberkochen,
didnottakepartinthecapitalincrease.
TheCarlZeissGroup’sshareinthelossesoftheabove-mentioned
companies,amountingtoEUR71,931thousand(lastyear:
EUR42,931thousand)isshownintheconsolidatedincome
statementunderresultsfrominvestmentsaccountedforapplying
theequitymethod.
DuetothecumulativelossesofCarlZeissVisionHoldingGmbH
thathavealreadybeenrecognizedinthepastbasedonthe
equitymethodandtherespectiveCarlZeissGroupshare,the
bookvalueoftheinvestmentwascompletelyamortizedinthe
reportingperiod.Furthermore,thevalueoftheprofit-participat-
ingcertificatesissuedbyCarlZeissVisionHoldingGmbHhad
101
Assets Liabilities Equity Sales EbIT Result revenues
EURmill EURmill EURmill EURmill EURmill EURmill
2008/09 1,300 1,410 –110 879 –72 –145
2007/08 1,336 1,321 15 892 52 –90
30 SEP 2009 30 SEP 2008
EURthou EURthou
Sharesinsubsidiaries 6,204 14,120
Loanstosubsidiaries 2,057 2,784
Profit-participatingcertificates 12,214 70,000
Investments 11,481 12,555
Securities 78,337 627
Othernoncurrentfinancialassets 25,080 24,202
135,373 124,288
tobereducedbyEUR57,804thousandinthereportingperiod
followingtheprinciplesofvaluationbytheequitymethod.
Thechangesinequityoutsideofprofitandlossintheconsoli-
datedfinancialstatementsoftheCarlZeissVisionGroupdueto
thefirst-timeapplicationofhedgeaccountinginaccordance
withIAS39hadtoberecognizedintheequityoftheCarlZeiss
GroupaccordingtotheshareheldbytheCarlZeissGroup.
Summaryofthefinancialinformationforinvestmentsaccounted
forapplyingtheequitymethod(base100%;September30):
19 Other Noncurrent Financial Assets
Thedeclineinsharesinsubsidiariesmainlyresultsfromthesale
ofasubsidiarypreviouslyaccountedforatfairvalue.
Theprofit-participatingcertificatesrelatesolelytotheCarlZeiss
VisionGroup.
Theincreaseinsecuritiesresultsfromthepurchaseofcorporate
bondswhichwereclassifiedasavailable-for-salesecurities.The
securitiesaretobevaluedatfairvalueandamountedasofthe
balancesheetdatetoEUR75,537thousand.
Theremainingnoncurrentfinancialassetsmainlyconsistof
assetsofforeigncompaniesrelatingtothefinancingofpension
commitmentsaswellasloansandrentdepositaccountswhich
arepayableinmorethanoneyear.Inaddition,trusteeaccounts
inconnectionwiththeacquisitionofacompanyarecarriedin
thisitem.
20 Other Noncurrent Non-financial Assets
Theothernoncurrentnon-financialassetsofEUR18,448thou-
sand(lastyear:EUR16,836thousand)chieflyconsistofthe
assetsforpensionliabilityinsurancepoliciestocoverdeferred
compensation.
21 Inventories
30 SEP 2009 30 SEP 2008
EURthou EURthou
Rawmaterialsandsupplies 190,444 215,659
Unfinishedgoods,otherworkinprogress 343,904 347,243
Finishedgoodsandgoodsforresale 231,091 259,150
Advancepaymentsmade 4,848 6,951
Inventories 770,287 829,003
ThebookvaluesincludeimpairmentsofEUR152,659thousand
(lastyear:EUR125,735thousand).Theincreaseismainlydue
toimpairmentsasaresultofthegenerallydifficulteconomic
situation.Ofthetotalamount,inventoriesintheamountof
EUR309,593thousand(lastyear:EUR338,872thousand)were
recognizedatanetrealizablevaluebelowcost.
Impairmentsoninventory,whicharerecordedasanexpense
andshownintheconsolidatedincomestatementundercost
ofmaterials,amounttoEUR23,260thousandinthereporting
period(lastyear:EUR14,838thousand).Write-upsof
EUR9,748thousand(lastyear:EUR10,714thousand)were
recordedintheincomestatement.
PurchaseobligationstowardssuppliersworthEUR38,721thou-
sand(lastyear:EUR44,303thousand)spreadoveranumberof
yearsexistedasofthebalancesheetdate.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS NOTES TOTHE F INANCIAL STATEMENTS
102
2008/09 2007/08
EURthou EURthou
Oct. 1 19,186 17,426
Changeinscopeofconsolidation – 173
Consumption –4,250 –3,164
Release –3,076 –2,337
Additionsincludingreclassification 5,392 7,381
Foreignexchangeeffects 48 –293
Sept. 30 17,300 19,186
30 SEP 2009 30 SEP 2008
EURthou EURthou
Trade receivables (net) 438,864 515,462
ofwhichneitheroverduenorimpaired asofthebalancesheetdate 284,303 330,422
ofwhichnotimpairedalthough overduewithinthefollowingranges asofthebalancesheetdate:
upto30days 41,570 52,892
31to90days 16,456 23,139
91to180days 14,244 19,901
181to360days 7,427 14,341
361daysandover 6,190 5,254
30 SEP 2009 of which 30 SEP 2008 of which due due after more after more than than one year one year
EURthou EURthou EURthou EURthou
Receivablesfromsubsidiaries 14,724 1 12,088 100
Receivablesfromassociatedandrelatedcompanies 56,831 – 44,295 –
Othercurrentfinancialassets 320,823 – 466,278 –
Othercurrentnon-financialassets 44,111 – 47,046 –
436,489 1 569,707 100
ThetradereceivablesasofSeptember30,2009includereceiv-
ablesintheamountofEUR478thousandfrombillingsofmanu-
facturingordersaccordingtothepercentage-of-completion
method.Advancepaymentsreceivedfortheseprojects(EUR
29,937thousand)arealsoconsideredinthistotal.EUR11,126
thousandofrevenuesfromproductiontoorderwererecognized
inthereportingperiod.Thetotalrevenuesfromprojectsin
progressasofthebalancesheetdateareEUR38,580thousand.
Theindividualvalueadjustmentsandthelump-sumindividual
valueadjustmentsontradereceivablesdevelopedasfollows:
23 Other Current Assets
Receivablesfromsubsidiariesresultfromcashmanagementand
fromtradereceivablesfromcompaniesnotincludedinCarlZeiss
AG’sconsolidatedfinancialstatements.
Theothercurrentfinancialassetsmainlyshowfixed-term
depositsmaturinginmorethan90daysandfinancialderivatives
withapositivemarketvalue.Thedeclineinthereportingperiod
principallyresultsfromthereclassificationoftheinvestmentof
fixed-termdepositsdueinmorethan90daysintoothernon-
currentfinancialassets.
Theothercurrentnon-financialassetschieflyshowtaxcredits
fromnon-incometaxesandprepaidexpenses.
Thefollowingtableprovidesinformationonthecreditrisks
associatedwiththereceivablesfromsubsidiariesandfrom
associatedandrelatedcompanies.
Thefollowingtableprovidesinformationonthecreditrisks
associatedwiththetradereceivables:
Furtherinformationonfinancialrisksandtypesofriskisprovided
insection37“FinancialInstrumentsandRiskProvisioning”. 30 SEP 2009 30 SEP 2008
TEUR T EUR
Trade receivables (gross) 456,552 533,366
(Lump-sum)individualvalueadjustments 17,300 19,186
Valueadjustmentsforforeigncurrencies –388 1,282
Trade receivables (net) 438,864 515,462
ofwhichdueaftermorethanoneyear 5,906 6,921
22 Trade Receivables
103
30 SEP 2009 30 SEP 2008
EURthou EURthou
Receivablesfromsubsidiaries 14,724 12,088
Receivablesfromassociatedandrelatedcompanies 56,831 44,295
71,555 56,383
ofwhichneitheroverduenorimpaired asofthebalancesheetdate 14,090 51,663
ofwhichnotimpairedalthough overduewithinthefollowingranges asofthebalancesheetdate:
upto30days 6,429 1,250
31to90days 1,822 472
91to180days 3,575 93
181to360days 5,414 245
361daysandover 40,214 2,650
AnimpairmentofEUR7,314thousandwasrecognizedinthe
receivablesfromassociatedandrelatedcompanies(lastyear:
EUR21,420thousand).
Furtherinformationonfinancialrisksandtypesofriskisprovided
insection37“FinancialInstrumentsandRiskProvisioning”.
24 Securities
Theothersecuritiesarelargelymadeupofcommercialpaper
maturinginlessthanoneyearorintendedforsalewithinone
year.
25 Cash and Cash Equivalents
Liquidassetsincludechecks,cashinhandandcashatbank.
Theeffectiveratesofintereston90-daycashatbankgenerally
liebetween0.25%and1.5%(lastyearbetween4%and5%).
Thesecuritiesreferalmostentirelytocommercialpaperacquired
inthereportingperiod.
26 Equity
Asinthepreviousyear,thecommon stockofCarlZeissAG
amountstoEUR120,000 thousandandisdividedinto
120,000,000par-valuestockswhichareallheldbythe
Carl-Zeiss-Stiftung.Thedividendpaidinthereportingperiod
cametoEUR10,000thousand.
Additional paid-in capitalisconstantatEUR52,770thousand.
Theconsolidated retained earningsincludethestatutory
reservesofCarlZeissAG,amountingtoEUR5,950thousand,
retainedearningsfromconsolidatedsubsidiaries,liabilities-side
differencesarisingfromcapitalconsolidation,theprovisions
fromthefirst-timeapplicationofIFRSandthecumulativecur-
rencydifferencesasofOctober1,2004,whichwerereclassified
asofthetransitiondateinaccordancewiththealternative
treatmentpermittedbyIFRS1.22.Inaddition,goodwillresulting
fromthecapitalconsolidationofsubsidiariesconsolidatedin
previousyearshasbeendeductedfromthisitem.
Thecumulative other reservescontainthedifferencesarising
fromthetranslationoutsideprofitandlossoftheforeigncur-
renciesusedforthefinancialstatementsofforeignsubsidiaries
fromthetimeofthefirstapplicationofIFRSonwards.Likewise,
theeffectsofthevaluationoutsideprofitandlossoffinancial
instrumentsclassedasavailable-for-saleisreflectedhere.The
changesinequityoutsideprofitandlossfromthefirst-time
applicationofhedgeaccountingweretakenintoaccounthere.
Minority interestsconsistofthird-partysharesintheequityof
domesticandforeignsubsidiaries.
Thedevelopmentoftheconsolidatedequityisshowninthe
equitystatement,whichisbasedontherulesofIAS1
Presentation of Financial Statements.
27 Pension Provisions
ThepensionprovisionsincludecommitmentsofCarlZeissAG
andvarioussubsidiariesforcurrentpensionsandforfuture
pensionentitlements.Thisitemalsoincludestheprovisions
recognizedbyourUScompaniesforpost-retirementhealthcare
liabilities.
30 SEP 2009 30 SEP2008
EURthou EURthou
Liquidassets 565,411 464,284
Securitiesmaturinginlessthan90daysfromthetimeofacquisition 15,325 581
580,736 464,865
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS NOTES TOTHE F INANCIAL STATEMENTS
104
Germany Other countries
2008/09 2007/08 2008/09 2007/08
% % % %
Discountrate 6.0 6.4 1.3–8.25 1.5–9.4
Trendinsalaries 3.0 3.0 2.0–4.3 2.0–7.0
Trendinpensions 2.0 2.0 1.0–5.0 1.0–5.0
Trendincostofmedicalcare – – 3.5–8.8 9.0
Expectedreturnonplanassets 5.0 5.0 1.3–7.5 1.7–7.6
Germany Other countries
30 SEP 2009 30 SEP 2008 30 SEP 2009 30 SEP 2008
EURthou EURthou EURthou EURthou
Presentvalueofdefinedbenefitobligationsnotfinancedbyafund 703,581 678,026 10,701 1,769
Presentvalueofdefinedbenefitobligationswhollyorpartlyfinancedbyafund 371,393 322,824 144,407 124,457
Total present value of defined benefit obligations 1,074,974 1,000,850 155,108 126,226
Fairvalueofplanassets 370,208 337,005 93,457 90,016
Net obligations 704,766 663,845 61,651 36,210
Unrecognizedpastservicecost – – – 72
Unrecognizedactuarialgains/losses 89,602 155,306 –22,369 895
794,368 819,151 39,282 37,177
TheCarlZeissGrouphasbothdefinedcontributionanddefined
benefitpost-employmentbenefitsystems.
Withthedefinedcontributionplans,theobligationofthe
companiesinquestionislimitedtothepaymentoftheagreed
sums.
Theexpensesfordefinedcontributionplanscameto
EUR43,574thousandinthereportingperiod(lastyear:
EUR45,744thousand).
Definedbenefitplansentailacommitmenttowardsbeneficiaries
–bothactiveandformeremployees–andtheirsurviving
dependentstopaytheagreedbenefits.TheCarlZeissGrouphas
suchcommitmentsinrespectofbothdomesticandforeign
Groupcompanies.TheCarlZeissGroupfinancesdefinedbenefit
planspartlyfromprovisionsandpartlyfromexternalfunds.
The2005/06fiscalyearsawtheintroductioninGermanyofa
ContractualTrustArrangement(CTA),underwhichassetsare
transferredtoalegallyindependenttrustsothatplanassetsare
createdwhichareentirelydedicatedtomeetingpension
obligations.TheseassetsmeetthecriteriaofIAS19.7forplan
assets,whichallowsthemtobenettedoffagainstthepension
obligationsintheseconsolidatedfinancialstatements.Ifthe
planassetsexceedtheunderlyingassuredbenefits,thesurplusis
recognizedundernoncurrentfinancialassets.
Actuarialassumptionsareunavoidableinanydefinedbenefit
pensionsystem.Inadditiontolifeexpectancy,whichisobtained
inGermany,forexample,fromthe2005Gmortalitytables
compiledbyProfessorDr.KlausHeubeck,thefollowingassump-
tionswereadoptedintheactuarialcalculations:
Inthecurrentfiscalyear,wehaveadjustedourestimateofthe
assumedmarketrateofinterestforthedeterminationofthe
DBOinaccordancewithIAS19becauseofthevolatilityofthe
financialmarkets.Thehighquality(AA-rated)corporatebonds
underlyingtheestimatewereadjustedforindividualcorporate
bondswithspecific,non-representativecharacteristics.The
reductionintheassumedinterestrateandtheincreaseinthe
DBOresultingfromthisadjustmentofthebasisfortheestimate
doesnothaveanyeffectontheaccruedpensionobligation
becausethecorridormethodinaccordancewithIAS19is
appliedtoactuarialgainsandlosses.
Theexpectedreturnonplanassetsisderivedfromtheportfolio
structureoftheplanassetsinconjunctionwiththemarket
returnsoncomparableinvestments.
Thefinancingstatusofthedefinedbenefitplansaccordingto
IAS19isasfollows:
105
Germany Other countries
2008/09 2007/08 2008/09 2007/08
EURthou EURthou EURthou EURthou
Currentservicecost 15,414 23,047 3,985 3,841
Interestcost 61,074 55,213 8,239 7,351
Expectedreturnonplanassets –17,817 –18,259 –6,891 –8,141
Pastservicecost – 3,884 –153 6
Amortizationofactuarialgains/losses –5,637 –640 1,617 –1,305
Other – – 89 –325
Net expenses for the fiscal year 53,034 63,245 6,886 1,427
Germany Other countries
2008/09 2007/08 2008/09 2007/08
EURthou EURthou EURthou EURthou
Consolidated pension provisions on Oct. 1 819,151 838,034 37,177 38,396
Foreignexchangedifferences – – 3,117 –293
Changesinscopeofconsolidation 234 90 – –
Netexpensesforthefiscalyear 53,034 63,245 6,886 1,427
Pensionbenefitspaid –60,340 –61,766 –499 –5,908
InvestmentinContractualTrustArrangementandotherinvestmentsinplanassetsoutsideGermany –19,949 –20,397 –9,881 –7,196
Effectofchangeinnon-nettablecomponents 2,238 –55 2,482 10,751
Consolidated pension provisions on Sept. 30 794,368 819,151 39,282 37,177
Theconsolidatedincomestatementcontainsthefollowing:
Thepension provisionshavedevelopedasfollows:
Theplan assetshavedevelopedasfollows:
ThemarketvalueoftheplanassetsinGermanyrecognized
aboveisbasedonthesituationonthevaluationdateof
September22,2009.ThemarketvaluewasEUR966thousand
loweronthebalancesheetdate.Thisdifferencewouldonly
haveaffectedthecumulativeactuarialgainsandlossesand
thereforehasnoinfluenceonthevaluesrecognized.
Inaddition,planassetsofEUR15,078thousand(lastyear:
EUR11,382thousand)existwhichareinexcessoftheunderlying
assuredpensionentitlementsorarenotclassifiedasplanassets
withinthemeaningofIAS19Employee Benefits.Thisamount
consequentlydoesnotformpartoftheplanassets,butis
recognizedundernoncurrentfinancialassets.Thepartresulting
fromemployer’scontributionsinthereportingperiodisshownin
thecashflowstatementunderPaymentsforInvestmentsin
FinancialAssetsandnotas“InvestmentintoContractualTrust
ArrangementandOtherPlanAssetsoutsideGermany.”
Theemployer’scontributionstotheplanassetsforthe2009/10
fiscalyearwillprobablybeEUR14,247thousand.
Germany Other countries
2008/09 2007/08 2008/09 2007/08
EURthou EURthou EURthou EURthou
Plan assets on Oct. 1 337,005 345,139 90,016 119,699
Foreignexchangedifferences – – –5,876 –7,922
Changesinscopeofconsolidation 79 77 – –
Actualreturnonplanassets 17,564 –28,663 6,265 –13,170
Employers’contributions 19,949 20,397 9,881 7,196
Employees’contributions – – 520 169
Pensionpayments –2,151 – –4,867 –5,205
Effectofchangeinnon-nettablecomponents –2,238 55 –2,482 –10,751
Plan assets on Sept. 30 370,208 337,005 93,457 90,016
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS NOTES TOTHE F INANCIAL STATEMENTS
106
Increase by Reduction by 1 percentage 1 percentage point point
EURthou EURthou
Totalofthecurrentpastservicecostandinterestexpensecomponentsofthenetcostsfortheperiodofpost-employmenthealthcare 315 –251
Cumulativeobligationsrelatingtohealthcarecostsforpost-employmentbenefits 4,145 –3,083
Germany Other countries
30 SEP 2009 30 SEP 2008 30 SEP 2009 30 SEP 2008
EURthou EURthou EURthou EURthou
Stocks 91,168 24,975 30,397 29,702
Securities 203,512 195,235 42,127 35,987
Realestate – – 2,891 –
Cash 64,737 108,184 2,064 2,795
Others 10,791 8,611 15,978 21,532
370,208 337,005 93,457 90,016
Portfolio Structure of the Plan Assets
Changesintheassumedcosttrendsinhealthcare,whichrelate
solelytotheUSsubsidiaries,wouldhavethefollowingimpact:
30 SEP 2009 30 SEP 2008 30 SEP 2007 30.9.2006 30.9.2005
EURthou EURthou EURthou EURthou EURthou
Presentvalueofdefinedbenefitobligation 1,230,082 1,127,076 1,234,331 1.376.500 1.327.311
Fairvalueofplanassets 463,665 427,021 464,838 356.156 109.566
Plandeficit –766,417 –700,055 –769,493 –1.020.344 –1.217.745
Empiricaladjustmentofplanliabilitiesasofthebalancesheetdate 93,508 –126,495 –133,044 –65.380 11.645
Empiricaladjustmentofplanassetsasofthebalancesheetdate –879 –68,233 6,574 1.922 7.559
107
30 SEP 2009 of which 30 SEP 2008 of which due in due in one year one year or less or less
EURthou EURthou EURthou EURthou
Provisionsforincometaxes 46,530 46,530 55,049 55,049
Provisionsforpersonnel-relatedobligations 115,911 51,358 111,602 62,655
Provisionsforsales-relatedobligations 130,735 130,735 130,245 130,245
Otherprovisions 68,651 32,842 62,647 22,945
361,827 261,465 359,543 270,894
1 OCT 2008 Change in Consumption Release Additions Accretion Foreign 30 SEP 2009 scope of including re- exchange consolidation classification differences
EURthou EURthou EURthou EURthou EURthou EURthou EURthou EURthou
Provisionsforincometaxes 55,049 – 9,214 557 1,238 – 14 46,530
Provisionsforpersonnel-relatedobligations 111,602 484 76,982 625 81,018 89 325 115,911
Provisionsforsales-relatedobligations 130,245 – 65,569 26,956 92,774 – 241 130,735
Otherprovisions 62,647 9 17,979 6,558 28,414 1,536 582 68,651
359,543 493 169,744 34,696 203,444 1,625 1,162 361,827
30 SEP 2009 of which of which 30 SEP 2008 of which of which due in maturing due in maturing one year in more one year in more or less than or less than five years five years
EURthou EURthou EURthou EURthou EURthou EURthou
Profit-participatingcertificates 9,043 1,530 – 7,930 – –
Liabilitiestobanks 430,347 104,048 2,177 335,155 22,279 19,700
Liabilitiesarisingfromfinanceleases 24,216 2,833 11,167 22,906 2,500 13,098
Otherfinancialliabilities 82,567 15,281 22 28,834 7,470 44
546,173 123,692 13,366 394,825 32,249 32,842
28 Other Provisions Thetaxprovisionsincludeamountsfortaxesnotyetfinally
assessed.
Personnel-relatedprovisionsareforobligationsunderpartial
retirementschemes,anniversaryexpensesandvacationnotyet
taken,thetimingorvolumeofwhichcannotyetbeprecisely
determined.Inaddition,thisitemincludesaccruedprovisionsfor
earlyretirementschemesinthisfiscalyear.Sales-relatedpro-
visionsmainlyincludewarranties,servicesstilltoberendered
andanticipatedlossesfromonerouscontracts.Theotherpro-
visionsmainlyincludeamountsforenvironmentalrisks,restruc-
turingandtheriskoflitigationcosts.
Theyalsocontainprovisionsrecognizedforapurchaseprice
allocationfrompreviousyears.
29 Financial Liabilities
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Profit-participating certificates
Theprofit-participatingcertificatescomprisethoseofseries
2004-D,2005-D,2006-D,2007-Dand2008-D,allwithatermof
fiveyears.EachcertificatehasaparvalueofEUR250.The
arrangementmayonlybecancelledbyeitherpartyinnarrowly
definedexceptionalcases.
Theyieldisonavariablescalefrom0%to20%,dependingon
theCarlZeissGroup’sreturnonsalesinaccordancewiththe
termsofthecertificates.
Theprofit-participatingcertificatesarerecognizedinthecon-
solidatedfinancialstatementsofCarlZeissAGasliabilities.Due
tothelossesgeneratedinthe2008/09fiscalyear,alosspartici-
pationinaccordancewiththetermsofthecertificatesoccurred
forthefirsttimeinthatyear.Theliabilityfromtheprofit-partici-
patingcertificatesthereforehadtobereducedintheincome
statementbyEUR861thousand.
Promissory note loans
UnderagreementsdatedJune16,2005,CarlZeissAGtookup
twopromissorynoteloansintheamountofEUR80millionand
EUR170million,maturingonJune24,2010,andJune25,2012
respectively.Fixedinterestof3.25%and3.625%respectivelyis
payableannually.
TwopromissorynoteloanstoatotalvalueofEUR160million
wereplacedinthefiscalyearunderreviewundercontractsof
May4,2009.Oneofthetwo,intheamountofEUR128.5million,
bearsafixedrateofinterestandtheother,worthEUR31.5million,
bearsvariableinterest.Aninteresthedgingtransactionwas
concludedforthelatter.Bothloansarerepayableatparvalue
onMay12,2014.
EUR347.1million(lastyear:EUR244.4million)oftheseloansis
includedintheliabilitiestobanks.AnotherEUR62.5million(last
year:EUR5.0million)isshownunderotherfinancialliabilities,as
thelendersofthisamountareinsurancecompaniesandfinancial
servicescompanies.
Liabilities to banks
Thisitemalsorecognizesliabilitiesarisingfromafinancelease
transaction.Intheyear2001,twoGroupcompaniesconcluded
severalleasesandsub-leaseswithtwopropertyleasingcompa-
niesforalargeproductionfacility.Theleasesandsub-leaseswill
expirenolaterthanDecember31,2013.
TheyareclassifiedasfinanceleaseswithinthemeaningofIAS17
Leases.Theleasingcompaniescarryoutrefinancingthrough
bankloans.Therefore,theconsolidatedbalancesheetshowsnot
onlytheproductionfacilitybutalsotheliabilitiestobanks,which
asofthebalancesheetdatewereEUR64,213thousand(last
year:EUR80,220thousand),andbear6%(lastyear:6%)
interest.ThecurrentportionamountstoEUR12,096thousand
(lastyear:EUR16,076thousand).Thecreditorshavecollateral
fortheloansintheformofthelandacquiredwiththecredit
facilityincludingthebuildingserectedonit,theydonothave
anyrightofrecourseagainstcompaniesoftheCarlZeissGroup.
Theloansarebeingrepaidinmonthlyinstallmentsandrun
until2013.
Liabilities arising from finance leases
TheCarlZeissGrouphasconcludedfinanceleasesforanumber
offixedassets,mainlyforpremisesabroad,technicalequipment
andmachineryandsoftware.
Themostsignificantliabilityarisingfromafinanceleaseresults
fromasale-and-lease-backtransactionataUSsubsidiary.On
September28,1999thecompany,basedinDublin(CA),USA,
soldexistingland,buildingsandimprovementsandleasedthem
back.Thelease-backtransactionisclassifiedasafinancelease
accordingtoIAS17Leases.Theleasewillrunforaperiodof
20years.Whentheoriginalleaseexpiresintheyear2019,the
lesseewillbegrantedtherighttotwoextensionsoffiveyears
each.Inaddition,theagreementcontainsaclauseallowingthe
leasepaymentstobeincreasedby13%everyfiveyears.
109
30 SEP 2009 of which of which 30 SEP 2008 of which of which due in due in due in due in one year more than one year more than or less five years or less five years
EUR thou EUR thou EUR thou EUR thou EUR thou EUR thou
Future minimum lease payments 32,810 4,355 13,671 32,626 3,955 16,588
Share of interest / future cost of finance 8,594 1,522 2,504 9,720 1,455 3,490
Present value of future minimum lease payments 24,216 2,833 11,167 22,906 2,500 13,098
30 SEP 2009 of which 30 SEP 2008 of which due in due in one year one year or less or less
EUR thou EUR thou EUR thou EUR thou
Accrued personnel liabilities 64,470 64,470 88,323 88,323
Accruals in sales 147,408 147,408 142,495 142,495
Other accruals 5,659 5,659 7,423 7,423
Liabilities to subsidiaries 26,055 26,055 15,652 15,652
Liabilities to associated and related companies 1,472 1,472 4,676 4,676
Advance payments received on orders 202,101 187,104 204,570 178,327
Tax liabilities (non-income) 13,053 12,972 12,608 12,608
Wage tax withheld 8,378 8,378 9,348 9,348
Liabilities for social security 4,929 4,929 5,390 5,390
Deferred income 41,140 35,123 37,483 33,391
Other non-financial liabilities 11,911 11,572 18,341 18,092
526,576 505,142 546,309 515,725
Furthernotesonthecontractuallyagreed,undiscountedcash
outflowsassociatedwiththeprimaryfinancialliabilitiesandthe
derivativefinancialinstrumentsaretobefoundinsection37
“FinancialInstrumentsandRiskProvisioning.”
30 Trade payables
EUR128thousand(lastyear:EUR627thousand)ofthetrade
payablesaredueinmorethanoneyear.
Furthernotesonthecontractuallyagreed,undiscountedcash
outflowsassociatedwiththeprimaryfinancialliabilitiesandthe
derivativefinancialinstrumentsaretobefoundinsection37
“FinancialInstrumentsandRiskProvisioning.”
31 Other Liabilities
Theliabilitiescanbebrokendownasfollows:
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110
30 SEP 2009 30 SEP 2008
EURthou EURthou
Note liability – 124
Contingent guarantees 1,287 1,594
attributabletosubsidiaries – 1,412
Contingencies arising from collateral put up to secure liabilities – 78
Other contingent liabilities 2,100 4,128
Theothercontingentliabilitiesmainlyincludeenvironmentaland
litigationrisksforwhichnoprovisionshavebeenrecognized
sincetheiruseisheldtobehighlyimprobable.
34 Other Financial Obligations / Operating Leases
Otherfinancialobligationsarisefromrentcontractsandleases
forofficepremisesandequipment.Thesearrangementsrunfor
termsbetweenoneandmorethanfiveyears.Someofthem
entailoptionsforextensionsorpurchaseandpriceadjustment
clauses.
Expensesarisingfromleases,rentcontractsandsimilararrange-
mentsinthereportingperiodcametoEUR34,617thousand
(lastyear:EUR32,547thousand).
sheetitemsconcernedthereforecannotbereconciledwiththe
correspondingfiguresinthepublishedconsolidatedbalance
sheet.
EUR133thousand(lastyear:EUR350thousand)ofthecashand
cashequivalentsissubjecttoarestraintondisposalortransfer.
33 Contingent Liabilities
Thedecreaseinaccruedpersonnelliabilitiesisconnectedwith
the“overallpackageforovercomingthecurrenteconomic
situation”agreedinJune2009andtheeffectofthereductionin
theincomeofemployeesabovethecollectivelyagreedsalary
scaleandseniorexecutivesasanequivalentcontribution.
Theaccrualsinsalesaremainlyrelatedtooutstandinginvoices
andbonusandcommissionpayments.
Liabilitiestosubsidiariesincludeliabilitiesfromcashmanagement
andfromtradepayablestocompaniesnotincludedinCarlZeiss
AG’sconsolidatedfinancialstatements.Governmentgrantsof
EUR594thousand(lastyear:EUR294thousand)arerecognized
asdeferredincomeforthisyearasofthebalancesheetdate.
Furthernotesonthecontractuallyagreed,undiscountedcash
outflowsassociatedwiththeprimaryfinancialliabilitiesandthe
derivativefinancialinstrumentsaretobefoundinsection37
“FinancialInstrumentsandRiskProvisioning”.
Other Information
32 Notes to the Consolidated Cash Flow Statement
Theconsolidatedcashflowstatementshowshowthecashand
cashequivalentsoftheCarlZeissGrouphavechangeddueto
inflowsandoutflowsinthecourseofthefiscalyear.Inaccor-
dancewithIAS7Statement of Cash Flows,adistinctionismade
betweencashflowsfromoperating,investingandfinancing
activities.
Thecashandcashequivalentsconsideredinthecashflow
statementcompriseallcashandcashequivalentscarriedinthe
balancesheet.
Cashflowsfrominvestingandfinancingactivitiesaredetermined
onthebasisofpayments.Theoperatingcashflow,incontrast,is
derivedindirectlystartingfromtheconsolidatednetresultfor
theyear.Withtheindirectmethod,adjustmentsaremadefor
changesrecordedinbalancesheetitemsinconnectionwithop-
eratingactivitiesthatarisefromtheeffectsofforeignexchange
translationandchangesinthescopeofconsolidation.Non-oper-
atinginfluencesarealsoeliminated.Thechangesinthebalance
111
2008/09 2007/08
Heads Heads
Germany 8,299 8,208
Europe(excludingGermany) 1,535 1,483
Americas 1,622 1,671
Asia,otherregions 1,460 1,275
12,916 12,637
Trainees/interns 409 404
13,325 13,041
Period EURthou
Oneyearorless 19,948
Between1and5years 23,479
Morethan5years 8,280
Theproperty,plantandequipmentitemincludesassetswith
futureminimumrentandleasepaymentsundernon-cancelable
operatingleasesduewithinthefollowingperiods:
35 Events after the Balance Sheet Date
Carl Zeiss Meditec AG Dividend
TheExecutiveBoardandSupervisoryBoardofCarlZeissMeditec
AGproposethepaymentofadividendofEUR14,636thousand
(EUR0.18perstock).Theshareofaround35%accruingto
minorityshareholdersofCarlZeissMeditecAGwillreducethe
equityoftheCarlZeissGroupaccordingly.Theannualgeneral
meetingforfiscalyear2008/09hasyettoapprovethisproposal.
Noothertransactionsofmaterialsignificancetotheassessment
ofthenetassets,financialpositionorresultsofoperationsofthe
CarlZeissGrouphaveoccurred.
36 Average Number of Employees for the Year
Period EURthou
Oneyearorless 7,480
Between1and5years 1,014
Morethan5years –
Theemployeesarethoseworkingforthecompaniesincludedin
thescopeofconsolidation.Theabovenumbersalsoincludethe
relevantproportionsofemployeesworkingpart-timeandthose
withtemporaryemploymentcontracts.
OfthetotalincreaseintheemployeeheadcountinGermany,
37employeesareduetochangesinthescopeofconsolidation.
37 Financial Instruments and Risk Provisioning
Financialinstrumentsarecontractsthatgiverisetoafinancial
assetofoneentityandafinancialliabilityorequityinstrumentof
anotherentity.InaccordancewithIAS32,theyincludeonthe
onehandprimaryfinancialinstrumentssuchastradereceivables
andpayables,andontheotherhandfinancialassetsand
liabilities.Theyalsoincludederivativefinancialinstrumentsthat
areusedtohedgeagainstforeignexchangerisks.
Financialassetsandfinancialliabilitiesareconsideredinthe
consolidatedbalancesheetfromthedateonwhichtheGroup
becomesacontractingpartyforthefinancialinstrument.
Financialassetsthatareacquiredorsoldatmarketconditions,
however,aregenerallyaccountedforonthesettlementdate.
Thefollowingappliestotheperformancerelationshipsunderly-
ingallprimaryfinancialinstruments:dependingonthetypeand
amountoftherespectiveperformance,tominimizethedefault
riskcollateralisrequired,creditinformation/referencesare
obtainedorhistoricaldatafromthepreviousbusinessrelation-
ship,inparticularpaymentpatterns,isused.Ifdefaultrisksare
perceivedfortheindividualfinancialassets,theyarecoveredby
allowances.
Thefutureminimumrentandleasepaymentsundernon-cancel-
ableoperatingleasescometo:
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112
Financial assets Book value of which Fair value30 SEP 2009 Loans and Held-to- Assets valued Available- Financial receivables maturity at fair value for-sale instruments investments through the financial outside income assets IAS 39 statement
EUR thou EURthou EURthou EURthou EURthou EURthou EURthou
Sharesinsubsidiaries 6,204 – – – 6,204 – 6,204
Investmentsandsecurities 128,971 – – – 128,971 – 128,971
Tradereceivables 438,864 438,864 – – – – 438,864
Otherfinancialreceivables 71,555 71,555 – – – – 71,555
Otherfinancialassets 360,174 336,488 – 23,686 – – 372,766
ofwhichderivativesnotincluded inhedgeaccounting 23,686 – – 23,686 – – 23,686
Cashandcashequivalents 580,736 – – – – 580,736 580,736
Total 1,586,504 846,907 – 23,686 135,175 580,736 1,599,096
Book Values and Fair Values by Measurement Categories
Thefollowingtableshowsthebookvaluesandfairvaluesof
financialinstrumentsinaccordancewiththemeasurement
categoriesofIAS39Financial Instruments: Recognition and
Measurement.
Financial assets Book value of which Fair value30 SEP 2008 Loans and Held-to- Assets valued Available- Financial receivables maturity at fair value for-sale instruments investments through the financial outside income assets IAS 39 statement
EUR thou EURthou EURthou EURthou EURthou EURthou EURthou
Sharesinsubsidiaries 14,120 – – – 14,120 – 14,120
Investmentsandsecurities 53,541 – – – 53,541 – 53,541
Tradereceivables 515,462 515,462 – – – – 515,462
Otherfinancialreceivables 56,383 56,383 – – – – 56,383
Otherfinancialassets 563,265 557,404 – 5,861 – – 566,482
ofwhichderivativesnotincluded inhedgeaccounting 5,861 – – 5,861 – – 5,861
Cashandcashequivalents 464,865 – – – – 464,865 464,865
Total 1,667,636 1,129,249 – 5,861 67,661 464,865 1,670,853
113
Financial liabilities Book value of which Fair value30 SEP 2009 Financial Liabilities valued Financial liabilities at at fair value instruments amortized cost through the outside IAS 39 income statement
EUR thou EURthou EURthou EURthou EURthou
Liabilitiestobanks 430,347 430,347 – – 434,174
Tradepayables 102,850 102,850 – – 102,850
Otherfinancialliabilities 119,138 116,741 2,397 – 120,692
ofwhichderivativesnotincluded inhedgeaccounting 2,356 – 2,356 – 2,356
ofwhichderivativesincluded inhedgeaccounting 40 – 40 – 40
Liabilitiesarisingfromfinanceleases 24,216 – – 24,216 24,216
Total 676,551 649,938 2,397 24,216 681,932
Financial liabilities Book value of which Fair value30 SEP 2008 Financial Liabilities valued Financial liabilities at at fair value instruments amortized cost through the outside IAS 39 income statement
EUR thou EURthou EURthou EURthou EURthou
Liabilitiestobanks 335,155 335,155 – – 325,613
Tradepayables 155,964 155,964 – – 155,964
Otherfinancialliabilities 46,051 41,696 4,355 – 46,051
ofwhichderivativesnotincluded inhedgeaccounting 4,355 – 4,355 – 4,355
ofwhichderivativesincluded inhedgeaccounting – – – – –
Liabilitiesarisingfromfinanceleases 22,906 – – 22,906 22,886
Total 560,076 532,815 4,355 22,906 550,514
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114
Net result 2007/08 of which from from from interest subsequent disposal measurement
EUR thou EURthou EURthou EURthouFromloansandreceivables 20,850 38,439 –17,589 –
Fromavailable-for-saleassetsandliabilities 1,631 671 – 960
Financialassetsandliabilitiesvaluedatfairvaluethroughtheincomestatement – 3,458 222 –3,686 6
Fromfinancialliabilitiescarriedatamortizedcost –10,861 –10,858 –3 –
Mostofthecashandcashequivalentsandtradereceivablesare
duewithinashorttime.Theirbookvaluesthereforecorrespond
totheirfairvaluesonthebalancesheetdate.
Theotherfinancialreceivablesincludereceivablesfromsubsid-
iariesandfromassociatedandrelatedcompanies.Theirbook
valuescorrespondtothefairvaluesinthereportingperiod.
Tradeliabilitiesareduewithinashorttimeasarule;thevalues
carriedthereforerepresentthefairvalue.
Thefairvaluesofliabilitiestobanksandotherfinancialliabilities
aredeterminedaspresentvaluesofthepaymentsassociated
withthedebtsbasedonthecurrentinterestyieldcurve.
Net results by measurement categories
Thetablebelowshowstheimpactoffinancialinstruments
carriedinincome,classedaccordingtothecategoriesinIAS39
Financial Instruments: Recognition and Measurement,netted:
Net result 2008/09 of which from from from interest subsequent disposal measurement
EUR thou EURthou EURthou EURthouFromloansandreceivables 22,377 31,815 –9,438 –
Fromavailable-for-saleassetsandliabilities 3,308 2,973 – 335
Financialassetsandliabilitiesvaluedatfairvaluethroughtheincomestatement 8,382 –181 8,563 –
Fromfinancialliabilitiescarriedatamortizedcost – 22,600 –22,172 –428 –
Theeffectsonequitycapitalresultingfromthemarketvaluation
ofavailable-for-salefinancialinstrumentsareshownseparatelyin
theequitystatement.
Capital Management
ThesuperordinategoalofcapitalmanagementattheCarlZeiss
Groupistosecurethecontinuityofthefirm.Thekeyissuehere
istohavesufficientfinancialscopeatourdisposaltoachievethe
targetedgrowth,whiletakinganoptimizedbalancesheetstruc-
tureintoaccount.Apartfromacquisitionsandstrategicalliances,
theprincipalgrowthoptionscomefromongoinginvestmentsin
innovativeness.Capitalmanagementisconstantlymonitoredon
thebasisofanumberoffinancialratios.
General Information on Financial Risks and Risk Provisioning
TheCarlZeissGroup'soperationalbusinessisexposedtomarket
pricerisksthroughchangesinforeignexchangeratesandinter-
estrates.TheGroupisalsosubjecttocreditorliquidityrisks
whicharisemainlyfromthetradereceivablesandinconnection
withmarketpricerisks.Ourbusinesspolicyaimstominimize
theserisksbyhedgingactivities,whicharecarriedoutatthe
corporatecenter.
Bindinginternalregulationsanddirectivesdeterminethescope
ofactionandaccountabilitiesininvestmentandhedgingtrans-
actions.Hedgingtransactionsareconductedonlywithbanks
holdingfirst-classcreditratingsfromleadingagencies.Value-at-
riskanalysessupplementedbyscenario,sensitivityandstress-test
analysesareusedtoquantifythemarketrisksintheareaof
currenciesforriskmanagementandmonitoringpurposes.The
ExecutiveBoardhassetalimitonthemaximumacceptedmarket
riskintheformofaconstantlymonitoredriskpotential.In
addition,ahedgequotaisdeterminedforallrelevantcurrencies
forthepurposeofdetailedoperationalmanagement.Thisquota
lieswithintherelevantrangesapprovedbytheExecutiveBoard.
Furthermore,risklimitshavebeendeterminedforcounterparties
andtypesoftransaction.Allcontractsarewithreputable
internationalfinancialinstitutions.
Thetransactionsareexecutedwithstrictsegregationofduties
intofrontoffice(trading),backoffice(execution,documentation)
andmiddleoffice(controlling,financialriskmanagement)tasks.
115
Credit risks
Creditriskoccursifthebusinesssituationofthecompany'sbor-
rowersorcounterpartiesdeteriorates,resultinginthedangerof
partialorcompletedefaultoncontractuallyagreedpaymentsor
performancesontheonehand,andofreductionsinthevalueof
financialinstrumentsduetolowercreditworthinessontheother.
Liquid assets
Theliquidassetsmainlyconsistofcashandcashequivalents.The
CarlZeissGroupisexposedtocreditrisksinconnectionwiththe
investmentofliquidassetsiffinancialinstitutionsarenolonger
abletomeettheircommitments.Themaximumriskposition
fromliquidassetscorrespondstothebookvaluesoftheseassets
inthebalancesheet.Financialcreditrisksarelimitedbymaking
investmentsatanumberofdifferentcreditinstitutions,setting
limitsperassetcategory,issuerorbank,andrequiringthat
businesspartnershavehighratings.
Trade receivables
Tradereceivablesresultalmostentirelyfromthebusinessgroups’
salesactivitiesinbothavarietyofmarketsandanumberof
industryandcustomersegments.
ThisriskislimitedbytheGroupcompaniessettingcreditlimits
forcustomersandconstantlycheckingthattheyareobserved.In
addition,alargeproportionofthetradereceivablesarehedged
invariousforms,somespecifictothecountriesinquestion.The
mostfrequentlyselectedformofhedgingisretentionoftitle.
Inaddition,valueadjustmentsaremadefortheriskinherentin
tradereceivables.Themaximumriskpositionintradereceivables,
statingoverdueandimpairedreceivablesseparately,isshownin
section22“TradeReceivables.”
Derivative financial instruments
TheCarlZeissGroupusesderivativefinancialinstrumentssolely
forinterestandcurrencyhedging.Interestrateswaps,plain-
vanillacurrencyoptionsandforwardexchangedealsare
employedforthispurpose.TheycovertheGroupcompanies’
underlyingtradetransactionsandtheprimary(underlying)
financialtransactions.
Theforeignexchangehedgingcontractsrelateinparticularto
plain-vanillacurrencyoptionsandforwardexchangedeals.They
arechieflyusedtohedgereceivablesandpayablesthatare
alreadycarriedinthebalancesheet,transactionsinthecurren-
ciesofmajorindustrializedcountriesaswellasthecurrency
exposurederivedfromarolling12-monthplanthatiscontinu-
ouslyupdated.
Thenominalvaluesrepresentthetotalofallpurchaseandsales
contractsforderivativefinancialtransactions,withoutnettingoff.
Themarketvaluesarederivedfromtheamountsatwhichthe
relevantderivativefinancialinstrumentsweretradedorquoted
asofthebalancesheetdate,withoutoffsettingdevelopmentsin
theunderlyingtransactions.Wherenomarketvaluesareavail-
able,theyarecalculatedbyacceptedmethods(includingthenet
presentvaluemethodandoptionpricingmodels).
Theinteresthedgesservetocovertheinterestriskresultingfrom
thevariable-interestshareofthepromissorynoteloanplacedin
fiscal2008/09.
TheCarlZeissGroup’smaximumriskpositionasofthebalance
sheetdateisthebookvalueofthefinancialassetsshownas
financialinstruments.Thedefaultriskislimitedbyensuringthat
counterpartieshavefirst-classcreditratingsfromexternalrating
agencies.Concentrationrisksarelimitedandcontrolledby
concludinghedgingcontractswithavarietyofcreditinstitutions.
Other receivables and assets
Themaximumcreditriskpositionfromotherreceivablesand
assetsisthebookvalueoftheseinstruments.TheCarlZeiss
Group’sexposuretocreditriskfromotherreceivablesandassets
islow.
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116
Undiscounted cash outflows Book value up to 31 to 91 to 181 to more than Total 30 SEP 2009 30 days 90 days 180 days 360 days 360 days 30 SEP 2008
EUR thou EURthou EURthou EURthou EURthou EURthou EUR thouProfit-participatingcertificates 7,930 – – – – 7,930 7,930
Liabilitiestobanks 335,155 4,507 2,896 4,291 10,848 339,473 362,015
Leaseliabilities 22,906 449 789 1,201 1,516 28,671 32,626
Otherfinancialliabilities 28,834 1,075 1,335 2,843 2,216 24,167 31,636
ofwhichderivativefinancial instrumentswithnegative marketvalue 4,355 551 897 915 1,353 639 4,355
Tradepayables 155,964 126,089 28,979 1,442 1,144 1,098 158,752
Liabilitiestoassociatedandrelatedcompanies 4,676 4,158 518 – – – 4,676
Liabilitiestosubsidiaries 15,652 10,613 537 4,588 – – 15,738
Liquidity risk
TheCarlZeissGroup’sliquidityriskconsistsofCarlZeissAG
orasubsidiarybeingunabletomeetitsfinancialobligations
(e.g.repaymentofloans,interestpayments).
TheCarlZeissGroupgeneratescashandcashequivalentsmainly
fromitsoperatingbusiness.Ifnecessaryorstrategicallyoppor-
tune,externalfinanceisalsoadded.Suchfinanceismainly
representedbythepromissorynoteloan.Furthermore,CarlZeiss
MeditecAGhastheadditionaloptionoffinancingthroughthe
capitalmarket.
LiquidityisensuredbyCarlZeissFinancialServicesGmbHwith
ongoing,Group-wideliquiditymonitoringandplanninganda
diversifiedandcarefullytimedinvestmentpolicy.Inaddition,
appropriatebankcreditlinesareavailable.
FurtherdetailsoftheCarlZeissGroup’sfinancialliabilitiesare
providedinsection29“FinancialLiabilities.”
Thetablebelowpresentsthecontractuallyagreed,undiscounted
cashoutflowsarisingfromtheprimaryfinancialliabilitiesand
derivativefinancialinstrumentswithnegativemarketvalue:
Undiscounted cash outflows Book value up to 31 to 91 to 181 to more than Total 30 SEP 2009 30 days 90 days 180 days 360 days 360 days 30 SEP 2009
EUR thou EURthou EURthou EURthou EURthou EURthou EUR thouProfit-participatingcertificates 9,043 – – – 1,530 7,513 9,043
Liabilitiestobanks 430,347 8,000 3,773 3,326 102,531 359,095 476,725
Leaseliabilities 24,216 361 754 1,078 2,161 28,456 32,810
Otherfinancialliabilities 82,567 1,370 470 374 16,479 81,438 100,131
ofwhichderivativefinancial instrumentswithnegative marketvalue 2,396 507 331 257 536 765 2,396
Tradepayables 102,850 72,539 28,132 1,730 265 184 102,850
Liabilitiestoassociatedandrelatedcompanies 1,472 1,008 399 125 – – 1,472
Liabilitiestosubsidiaries 26,055 7,596 134 4,500 – 14,666 26,896
117
TheliquidassetsheldandcreditlinesarrangedgivetheCarlZeiss
GroupsufficientflexibilitytocovertheGroup’srefinancing
requirements.Becausethesourcesoffinanceandthecashand
cashequivalentsarediversified,theCarlZeissGroupisnot
exposedtoconcentrationriskinthisarea.
Financial market risks
TheCarlZeissGroupisexposedtomarketpricerisksthrough
changesinforeignexchangeratesandinterestratesbecauseof
itsglobalbusinessactivities.
TheCarlZeissGroupusesvalue-at-riskanalysesaspartofitsrisk
management.Intheseanalyses,theriskpositionisregularly
measuredagainstchangesinforeignexchangeratesandinterest
ratesbycalculatingamaximumlossbasedonastipulated
confidencelevelandholdingperiod.Thevalue-at-riskiscalcu-
latedonthebasisofhistoricdatatakingintoaccountthecor-
relationsbetweenthetransactionsconsidered.Thevalue-at-risk
calculatedthereforeshowsthemaximumlosswhichwillnotbe
exceededwithintendayswithaprobabilityof95%(historic
simulation).
Currency risk
AsaconsequenceoftheCarlZeissGroup’sglobalorientation,
theoperatingbusinessandthereportedfinancialresultsand
cashflowsareexposedtorisksfromexchangeratefluctuations,
mainlyintheUSdollar,theJapaneseyenandtheBritishpound.
Thecurrencyriskarisesprimarilyintheoperatingbusinesswhen
salesrevenuesaregeneratedinacurrencydifferentfromthatin
whichtheassociatedcostsareincurred.Inordertoreducethe
impactofexchangeratefluctuationsonbusinessoperations,
currencytransactionrisksareextensivelyhedgedusingplain-
vanillacurrencyoptionsandforwardexchangedealswithfinan-
cialinstitutionswithfirst-classcreditratings.
Theriskpositionofalloperationaltransactionsinforeigncurren-
ciesisdeterminedthroughcash-flowaccountingindifferent
currenciesandbudgeting.Value-at-riskanalysessupplemented
byscenario,sensitivityandstress-testanalysesareusedforrisk
monitoring.Theseriskanalysesandtheresultsofhedgingare
calculatedmonthlyandreportedtotheExecutiveBoard.
Theriskofexchangeratefluctuationsismonitoredforpurposes
ofexternalcontrolonthebasisofavalue-at-riskrelatingto
thepositionsincurrenciesotherthanthefunctionalcurrency.
Thevalue-at-riskoftheforeignexchangehedgingcontracts
increasedinthefiscalyearjustendedcomparedwiththepre-
viousyear,amountingtoEUR3.0millionasofSeptember30,
2009(lastyear:EUR2.6million).Theincreaseislargelydueto
highmarketvolatility.
Interest rate risk
Interestraterisksbasicallyarisefrompossiblefluctuationsinthe
valueofafinancialinstrumentduetochangesinmarketinterest
rates.
TheCarlZeissGroupholdsanumberofinterestrate-sensitive
assetsandliabilities,partlytomeettheliquidityrequirementsof
theday-to-daybusiness,andisthereforeexposedtointerestrate
riskinthecontextofassetandliabilitymanagement.Mostofit
resultsfromshort-terminvestments.
TheCarlZeissGroup’sinterestrateriskisanalyzedandcontrolled
centrallybyCarlZeissFinancialServicesGmbH.TheCarlZeiss
Groupbearsthefollowingcashflowandfairvalueriskonthe
basisofthevariable-andfixed-interestinstruments.
Cashflowrisk:Thevariable-interestinstrumentsheldbythe
CarlZeissGroupwouldhaveanimpactonincomeintheevent
ofachangeof+/100basepointsof+/-EUR8.7million(last
year:+/-EUR9.4million).
Fairvaluerisk:Inthecaseoftheavailable-for-salefixed-interest
instruments,achangeof+/100basepointswouldhavean
impactonequityintheamountof+/-EUR2.7million(lastyear:
+/-EUR0.1million).
Afive-yearinterestrateswapwasconcludedtohedgethe
interestrateriskinconnectionwiththevariable-interestpartof
thepromissorynoteloanissuedinthe2008/09fiscalyear.
Thisinterestrateswapwasdesignatedasacashflowhedge,
observingtherulesforhedgeaccounting.Theperiodtomaturity
ofthehedginginstrumentcorrespondstothatofthebullet-
maturityhedgeditem.
OUR INSP IRAT ION FOREWORD MANAGEMENTREPORT BUS INESS GROUPS FROMTHE GROUP AT YOURSERV ICE FINANCIAL STATEMENTS NOTES TOTHE F INANCIAL STATEMENTS
118
ThenominalamountofthehedginginstrumentisEUR31,500
thousand,correspondingtothevariable-interestportionofthe
promissorynoteloan.Theinterestrateswapshowsanegative
fairvalueasofthebalancesheetdateofEUR40thousand,not
includingaccruedinterest.Theconsolidatednetresultfor
2008/09containsnetlossesbeforetaxesofEUR40thousand
fromthemeasurementoftheinterestrateswap.
Other price risks
TheCarlZeissGroupisnotexposedtosignificantotherprice
risks,whicharealsonumberedamongthefinancialmarketrisks.
38 Information on Related Party Transactions
Theterm"relatedparty"comprisestheCarlZeissStiftung,
HeidenheimanderBrenzandJena,theoperatingenterprise
SCHOTTAG,Mainz,andnon-consolidatedsubsidiaries.Business
relationswiththesecompaniesarehandledongenerallyac-
ceptedmarkettermsandconditions.Relationshipswithasso-
ciatedcompaniesandjointventuresarealsodealtwithonthis
basis.Theresultingeffectsontheconsolidatedfinancialstate-
mentsarenegligible,withtheexceptionofthebrandlicense
agreementandtheagencyagreementswiththeCarlZeissVision
Group.Theabove-mentionedagreementsarereflectedinthe
consolidatedfinancialstatementsintheincomefromlicenses
(EUR7,500thousand,unchangedfromlastyear),otheroperat-
ingincome(EUR5,997thousand;lastyear:EUR3,665thousand)
aswellasreceivablesfromassociatedandrelatedcompanies
(EUR56,360thousand;lastyear:EUR43,418thousand).Inthe
contextofthereformofthefoundationandtheassociated
movetobecomelegallyindependentoftheCarlZeissStiftung,a
loanofEUR5,000thousandwasgrantedtoCarlZeissAGwhich
isshownintheconsolidatedbalancesheetunderliabilities
tosubsidiaries.Inaddition,twofurtherloanswereissuedbythe
CarlZeissStiftunginthereportingperiod,ofEUR6,500
thousandandEUR7,300thousand.
Norelationshipsexistwithkeypersonsexercisingamaterial
influence.
39 Corporate Governance Code
TheExecutiveBoardandtheSupervisoryBoardofCarlZeiss
MeditecAG,Jena,alistedcompanyincludedintheconsolidated
financialstatements,haveissuedadeclarationontherecom-
mendationsofthe“GovernmentCommissionontheGerman
CorporateGovernanceCode”inaccordancewithSection161of
theGermanStockCorporationAct(AktG).Thisdeclarationis
availabletostockholdersonthecompany’swebsite
(www.meditec.zeiss.de).
40 Remuneration of the Executive Board and the
Supervisory Board
Theshort-termbenefitsduetotheMembersoftheExecutive
BoardamountedtoEUR2,706thousandinthe2008/09fiscal
year(lastyear:EUR5,047thousand).EUR508thousand
(lastyear:EUR496thousand)wasspentonpost-employment
benefits.
AfeeofEUR502thousandwaspaidtotheMembersofthe
SupervisoryBoardfortheirsupervisoryactivitiesinthereporting
period(lastyear:EUR329thousand).
119
As of the balance sheet date, pension obligations towards former
members of the Executive Board and their surviving dependents
totaled EUR 18,606 thousand (last year: EUR 15,858 thousand).
They received EUR 1,208 thousand in post-employment benefits
and EUR 186 thousand in other noncurrent benefits in the
reporting period.
The Members of the Executive Board and Supervisory Board are
listed on pages 68 and 69.
Oberkochen, December 22, 2009
Executive Board of Carl Zeiss AG
Dr. Dieter Kurz
Dr. Hermann Gerlinger
Dr. Michael Kaschke
OUR INSP IRAT ION FOREWORD MANAGEMENT REPORT BUS INESS GROUPS FROM THE GROUP AT YOUR SERV ICE FINANCIAL STATEMENTS NOTES TO THE F INANCIAL STATEMENTS
120
Auditor's Report
We have audited the consolidated financial statements prepared
by Carl Zeiss AG, Oberkochen, comprising the balance sheet, the
income statement, statement of changes in equity, cash flow
statement and the notes to the consolidated financial state-
ments, together with the corporate management report for the
fiscal year from October 1, 2008, to September 30, 2009.
The preparation of the consolidated financial statements and
the group management report in accordance with the IFRSs, as
adopted by the EU, and the additional requirements of German
commercial law pursuant to §315a Abs. 1 HGB [Handelsgesetz-
buch “German Commercial Code"] are the responsibility of the
parent company's management. Our responsibility is to express
an opinion on the consolidated financial statements and on the
group management report based on our audit.
We conducted our audit of the consolidated financial statements
in accordance with §317 HGB and German generally accepted
standards for the audit of financial statements promulgated by
the Institut der Wirtschaftsprüfer (IDW). Those standards require
that we plan and perform the audit such that misstatements
materially affecting the presentation of the net assets, financial
position and results of operations in the consolidated financial
statements in accordance with the applicable financial reporting
framework and in the group management report are detected
with reasonable assurance. Knowledge of the business activities
and the economic and legal environment of the Group and
expectations as to possible misstatements are taken into account
in the determination of audit procedures. The effectiveness of
the accounting-related internal control system and the evidence
supporting the disclosures in the consolidated financial state-
ments and the group management report are examined primarily
on a test basis within the framework of the audit.
The audit includes assessing the annual financial statements of
those entities included in consolidation, the determination of
entities to be included in consolidation, the accounting and
consolidation principles used and significant estimates made by
management, as well as evaluating the overall presentation of
the consolidated financial statements and group management
report. We believe that our audit provides a reasonable basis for
our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolida-
ted financial statements comply with IFRSs, as adopted by the
EU, the additional requirements of German commercial law
pursuant to §315a Abs. 1 HGB and give a true and fair view of
the net assets, financial position and results of operations of the
Group in accordance with these requirements. The group
management report is consistent with the consolidated financial
statements and as a whole provides a suitable view of the
Group’s position and suitably presents the opportunities and risks
of future development.
Stuttgart, December 22, 2009
KPMG AG
Wirtschaftsprüfungsgesellschaft
Held
Wirtschaftsprüfer
von Hohnhorst
Wirtschaftsprüfer
FINANCIAL STATEMENTS AUDITOR’S REPORT
Contact
For Journalists
Carl Zeiss AG
Corporate Communications
Phone +49 (0)7364 20-3242
press@zeiss.de
For Financial Services Providers
and Investors
Carl Zeiss Financial Services GmbH
Phone +49 (0)7364 20-3470
finance@zeiss.de
For Applicants
www.zeiss.de/career
Phone +49 (0)7364 20-4456
Additional Information
www.zeiss.de/en
Publisher
Carl Zeiss AG
73346 Oberkochen
Germany
Design and Editing
Carl Zeiss AG
Corporate Communications
Karin Gretz,
Corporate Finance/Controlling
Andreas Kopf
Visual Design and Layout
Carl Zeiss AG
Corporate Communications
Ansgar Seelen,
Communications Services
Andreas Schwab
Translation
Carl Zeiss AG
Communication Services
Clive Poole, Paul Soos
Photographic Credits
Carl Zeiss
Wahl-Druck GmbH, Aalen
Disclaimer
This annual report contains information relating to the
future. This is based on an assessment of future
developments at the time when the report was being
compiled. Such information entails risks and uncer-
tainties that, to a large extent, cannot be influenced
by Carl Zeiss or precisely assessed. This includes, for
example, future economic developments and market
conditions, the behavior of other market players,
the achievement of expected synergy effects and legal
or political decisions. Should the mentioned or other
factors occur or if the assumptions on which the
future-related information is based prove to be incor-
rect, the actual results may differ from the expecta-
tions described in the Annual Report. Carl Zeiss will
not correct or update the future-related information in
order to adapt it to current developments and events
occurring after the reporting date.
Product descriptions and names which are the
property of Carl Zeiss are marked accordingly. Other
product and company names given in this report may
be brands of the respective owner.
The Annual Report of the Carl Zeiss Group can be
accessed at www.zeiss.de/annualreport. The English
text is a translation of the German original. If the texts
differ, the German report takes precedence.
Carl Zeiss AG
73446 Oberkochen, Germany
Phone +49 (0)73 64 20-0
Fax +49 (0)73 64 20-68 08
www.zeiss.de/en
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