5 Revenue

Revenue is recognized under IFRS 15 when control over the distinct goods and services is transferred to the customer, i.e. as soon as the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from the goods or services transferred. At Carl Zeiss Meditec, this is normally the case when the goods are delivered. Invoices are usually issued at the same time. The recognition of revenue requires a contractual agreement that creates legally enforceable rights and obligations. Revenue from services, for example under maintenance agreements, is recognized over time since the customer simultaneously receives and consumes the benefits evenly throughout the performance period. If services are not delivered on a straight-line basis, revenue is recognized as and when the services are provided. Revenue is recognized in the amount of the transaction price. This means, the amount of consideration that the company is expected to receive in exchange for the agreed transfer of goods and services. Revenue from royalties that the Group collects as a usage fee (fee for an access right) over the period of use are recognized on an accrual basis according to the economic substance of the underlying contract. In all cases described, revenue is recognized in accordance with the output method, since customers normally use both the services and the licenses evenly throughout the year. The service agreements consist of a defined service (for example. repair service) which is provided as soon as the customer decides to use it.

Revenue is adjusted for variable price components such as discounts, price reductions, customer bonuses and rebates where applicable. Discounts are generally allocated to the individual performance obligations on the basis of the relative stand-alone selling prices.

In addition to conventional product sales, the Company offers several performance obligations under multiple component arrangements. This can be, for example, the sale of a product combined with a warranty extension, and/or an additional sale of consumables. If a single contract with a customer comprises several performance obligations and the timing of fulfillment of the performance obligations differs, the agreed transaction price is allocated to the separate performance obligations in accordance with the relative stand-alone selling prices.

In addition, the Group generates revenue from leases, which are recognized in accordance with IFRS 16 Leases. These relate either to product sales under finance leases (as manufacturer/distributor), in which case the revenue is recognized on the date the product is made available for use, or operating leases, where revenue is recognized on a straight-line basis over the agreed term of the lease.

In connection with the sale of goods, at least the usual statutory warranties are also granted. The expected warranty claims are reflected by the recognition of provisions.

Revenue from the sale of extended warranties that can be purchased separately (service type warranties) is recognized on a pro rata basis over the contractually agreed period of the warranty obligation, and is included in revenue from services.

A financing component is not taken into account for the amount and date of revenue recognition, if the period of time between the transfer of the goods or services and payment by the customer is no more than one year. With the exception of finance leasing, the Carl Zeiss Meditec Group generally does not offer any long-term financing options. The payment term is generally between 30 and 90 days.

Additional costs for contract initiation (mainly sales commissions), for which the write-down period would not be more than one year, are recognized immediately as an expense.

Revenue recognized in the amount of €44,418k (prior year: €43,044k) was still carried under contract liabilities at the beginning of the reporting period. Contracts presently still included under current contract liabilities, in the amount of €44,384k (prior year: €44,418k), are expected to result in revenue in the next fiscal year.

The transaction price allocated to (for ordinary or partially unfulfilled) remaining performance obligations arising from contracts pertaining to the provision of services that have an original term of more than one year is expected to result in revenue of €6,942k in fiscal year 2026/27 (prior year for fiscal year 2025/26: €8,051k) and €6,380k in subsequent fiscal years (prior year: €6,801k). In addition, there are performance obligations as order backlog in the amount of €379,646k (prior year: €282,864k).

Refer to the segment reporting for a breakdown of revenue by category.