Carl Zeiss Meditec AG Q2 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 : So first question, please, relates to the strong performance in your Refractive Laser correction business. And I wonder if you could give us some sense of what your revenue expectation is for that business this year in the context of the EUR 1.6 billion group revenues that you now guide for. I think that one of your competitors in the U.S. is also seeing very strong demand in refractive correction, but somewhat cautioning on the sustainability of these trends suggesting there's been some pull forward of demand. I wonder if you can give some sense of are you seeing that or are you cautious about that dynamic? Just some sense as market leader for the outlook of the refractive correction market, please? The second question relates to the IOL business. Thank you for showing the market data on volumes, and pleasing to hear that you've been relatively stable this quarter. There seems to be quite a lot of new company entrants into this market -- or new product entrants from both Johnson & Johnson with the synergy product, the extended depth of focus lens from Alcon Vivity, competition in China with PanOptix. Are you seeing any of this competition? Is this in any way impacting your growth aspirations for intraocular lenses? Last question, please. Clearly, an impressive financial position the company is in, over EUR 800 million in net cash. There is indeed speculation once again that Bausch Health or the previous Bausch + Lomb business is up for sale with that seller potentially considering selling individual assets, maybe even the surgical business. I wonder if you could comment as to whether this sort of assets is of strategic interest to the group or whether now your organic efforts make this endeavor less worthwhile?

Question: Scott Bardo - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Yes. With respect to your upcoming launches in the North American market, can you confirm whether the launch of your monofocal IOL will be coupled with your new phaco launch that they be launched simultaneously? Or is there different steps, launch time frames that you have in mind for those products? And I wonder whether you can highlight a little bit the strategy of market share capture in North America for phaco. Obviously, this has been somewhat of an entrenched market. Have you already lined up lots of key opinion leaders ready to take the solution? Or is this going to be, say, an aggressive selling and marketing effort to make some inroads? Just a little bit of color on how you're thinking about the go-to-market strategy. Second question, a follow-up, please. It's just a little bit more clarity on the messaging on next year's margin or the midterm margin. I think your margin guidance is for above 18% EBIT margin. But you clearly are highlighting that the cost base is somewhat abnormal. Is the message for next year that you would expect margins to decline from this current high 20% level? Or is it that you just don't expect any incremental operational leverage from these high 20% margin levels?