Carl Zeiss Meditec AG Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Scott Bardo - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I wonder if you could share some thoughts about the gross margin development this fiscal year. I think your first quarter started on the gross margin level a little bit lower than I would have expected considering the strong mix you received from consumables and recurring revenues. And of course, I'm mindful of the fact that there will be some sort of delayed recovery in your lower-margin capital business. So I just wonder if you could talk about the moving parts on gross margin, please, for the full year. Second question, again, related to margin, but operating margin. Clearly very difficult to forecast all these moving parts. I don't think ZEISS ever started with such a strong margin as you have this quarter. But if we look back this time last year, your SG&A costs or you're -- sorry, you're selling and marketing costs were, I think, annualizing at EUR 330 million, EUR 340 million or so. And if we do the same exercise this year, I think those costs are, say, EUR 50 million, EUR 60 million down on a sort of an annualized basis. So I'm just trying to understand really, again, what would be a reasonable expectation for selling and marketing to the best of your guidance? And should we consider, when we look into the next year, you're back to at or above 2019 SG&A levels?

Question: Scott Bardo - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : That's very helpful. And perhaps just one quick follow-up, if I may. Dr. Monz, I mean, impressive balance sheet dynamics now with net liquidity of over EUR 700 million. Have there been any opportunities that have unfolded throughout this crisis that makes M&A or acquisitions more likely in your mind over the next 12 months?

Question: Scott Bardo - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Just two questions, please. I wonder if you could give us a bit of an update, please, on where we are with the Microsurgery conversion, if you like, of your previous system. I'm referring to KINEVO and PENTERO and what the relative mix now is of new instruments sold for the group. Perhaps also just give us some sense of the dental segment with TIVATO, how that's performing relative to neurosurgery. So just a bit more clarity about where we are with that business would be helpful. And second question, please, and just one in terms of expectation setting for your new upcoming cataract launches in North America. I think you're looking to launch a new phaco system towards the end of the year and your first monofocal IOL, if I'm correct. To what extent should we expect REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 08, 2021 / 8:30AM, AFXG.DE - Q1 2021 Carl Zeiss Meditec AG Earnings Call penetration of these launches amid an environment where it's a bit more difficult to do wet lab tutorials and so forth for phaco? I mean, is it a fair assumption that the initial uptake will be a slow one until the world normalizes and normal industry activities resume?