Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Investor Presentation (November 2023)
32 slides from Staar Surgical's investor presentation, Nov 16, 2023
Slide 1: Investor Presentation November 2023
NASDAQ: STAA Investor Presentation November 2023 Exhibit 99.1
Slide 2: Forward Looking Statements
All statements that are not statements of historical fact are forward-looking statements, including statements about any of the following: any financial projections (including sales), plans, strategies, and objectives of management for 2023 and beyond or prospects for achieving such plans, expectati
Slide 3: Our Vision: The First Choice for Doctors and Patients
03 STAAR Surgical / Our Vision The first Choice for Doctors and Patients Seeking Visual Freedom
Slide 4: Our Growth Foundation
04 STAAR Surgical / Our Growth Foundation Invest in Largest Market Opportunities 1 Drive EVO ICL Awareness 2 Enhance Surgeon Support and Education 3 Introduce New Products 4 Create a High Performance Organization 5
Slide 5: Our Market Opportunity – A Global Myopia Epidemic
STAAR / Our Market Opportunity – A Global Myopia Epidemic Our Large Market Opportunity MYOPIA Billions of People Today: Every third person in the world 2050: Every other person in the world * Normal Myopia Key Factors with Myopia Environmental Factors Genetic Predisposition 05 *BHVI, adapted from Ho
Slide 6: Myopia Correction Options: Laser Vision Correction in Decline
Myopia Correction Options 06 Laser Vision Correction in Decline 2009 2022 Japan Laser Vision Correction Procedures Down From 2008 Peak 75% U.S. Laser Vision Correction Procedures Down From 2008 Peak 50% Refractive Procedures Laser Vision Correction (LASIK, PRK, SMILE) Lens-Based (EVO ICL) Glasses or
Slide 7: Investing in Largest Refractive Markets
07 Top 15 Refractive Procedure Markets China U.S. 34% 17% of 4.5M Estimated Procedures in 2023 of 4.5M Estimated Procedures in 2023 Top 15 Markets 83% of 4.5 Estimated Procedures in 2023 STAAR / Our Market Opportunity – Investing in Largest Refractive Markets Achieving STAAR’s Global Growth Opportun
Slide 8: Investing in Fastest Growing Markets
2024E-2026E China U.S. ROW India South Korea Japan +462,441 Expected Procedure Growth Global Procedures expected to grow from 4.5M to ~5.0M* 08 STAAR – Our Market Opportunity - Investing in Fastest Growing Markets *Market Scope STAAR Custom Model, August 23, 2023. Achieving STAAR’s Global Growth Opp
Slide 9: Double-Digit Sales CAGR (2024-2026) Target Sales Model
3-Year Sales CAGR (2024-2026) Fiscal 2026 Sales ANNUAL GROWTH RANGE Y/Y $500 TO $550 MILLION 15% 20% Approximately TO Approximately Approximately 09 STAAR / Our Vision - Double-Digit Sales CAGR (2024-2026) TARGET SALES MODEL
Slide 10: A Global Growth Company
STAAR / A Global Growth Company 10 Select Growth Markets (3-Year CAGR, 2020-2022) UNITED STATES +28% CANADA +20% MEXICO +16% NETHERLANDS +19% SOUTH AFRICA +15% FRANCE +28% AUSTRALIA +15% BELGIUM +15% ITALY +21% EGYPT +26% INDIA +19% CHINA +32% JAPAN +40% MALAYSIA +31% SINGAPORE +60% VIETNAM +18% THA
Slide 11: The Next Stages of Growth – Markets
11 STAAR / The Next Stages of Growth – Markets UNITED STATES Population 340 Million MEXICO Population 128 Million INDONESIA Population 278 Million BRAZIL Population 216 Million The Data Among the 80 million new MACs [middle-class and affluent consumer], over 70% of this group will be from tier-3 cit
Slide 12: The Next Stages of Growth – A Robust Product Pipeline
Presbyopia STAAR / The Next Stages of Growth – A Robust Product Pipeline EVO VIVA™ Sphere and Toric Injectors ACCUJECT Ordering System EVO+ Next Gen EVO STELLA Internal R&D CHINA and Partnerships 12
Slide 13: Vital Few Projects and Investments to Drive Growth
How? STAAR / Vital Few Projects and Investments to Drive Growth 13 Evergreen and Refreshed as Data and Voice of Customer Dictates… Increase surgeon support and education Presbyopia (Viva™) New lens delivery devices globally (New Accuject/Global injector program) Simplify our ICL ordering process (Ne
Slide 14: Creating a High-Performance Organization
14 How? STAAR / Creating a High-Performance Organization VISION Voice of Customer Corporate Values Exciting Global Growth The first Choice for Doctors and Patients Seeking Visual Freedom Voice of Employees Facts and Data Driven Organizaion THE ORGANIZATION STRUCTURE & TEAM TO EXECUTE VITAL FEW PROJE
Slide 15: Why ICL? Milestone Sales Achievements
15 Why ICL? Milestone Sales Achievements STAAR expects to sell more ICLs in the next three years (2024-2026) than the first 25 years of ICL sales combined. TOTAL ICLs SOLD… ~ 20 YEARS ~ 3 YEARS < 2 YEARS VISION 2026 1999 - 2Q19 2Q22 1Q24E 4Q26E 1 M 2 M 3 M 6 M
Slide 16: Why EVO ICL? Only One Phakic Intraocular Lens Is Collamer
Why EVO ICL? Only One Phakic Intraocular Lens Is Collamer® Posterior chamber – the narrow space behind the iris and in front of the natural crystalline lens Collamer, A unique biocompatible material Approaching 3M+ lenses sold; 90%+ share of phakic IOL market (Company estimates) ~25 Year history of
Slide 17: Why EVO ICL? A Disruptive Technology
Why EVO ICL? A Disruptive Technology 17 Sharp, clear vision No removal of corneal tissue Excellent vision at night Removable by a surgeon Does not cause dry eye syndrome Protection from UV rays Quick procedure and recovery Additive Bio-Compatible Quiet in the Eye
Slide 18: APAC: Broad-based Geographic Growth and Share Gains
APAC / Achieving Broad-based Geographic Growth and Share Gains 18 ICL Sales by Country Refractive Procedure Market Share, 2022 Growth Variables CHINA ~20% JAPAN SOUTH KOREA ~50% ~15% 34% APAC Sales CAGR (2018-2022) High myopia prevalence Level of STAAR investment EVO ICL adoption by largest hospital
Slide 19: China: EVO ICL Movement Down Diopter Curve at Largest Customer
China / EVO ICL Movement Down Diopter Curve at Largest Customer 2018-2020 Low Myopia (below -3D) 46.6% 46.8% 55.9% 93.6% 52.8% 51.9% 56.2% 46.2% 35.1% 45.4% 21.0% 31.7% 23.3% 49.7% 6.0% 38.8% Moderate Myopia (-3 to -6D) High Myopia (-6 to -10D) Extreme Myopia (above -10D) 2021 2018-2020 2021 2018-20
Slide 20: EMEA: Progress Despite Macroeconomic Headwinds
EMEA / Progress Despite Macroeconomic Headwinds 20 Growth Variables 9% EMEA Sales CAGR (2018-2022) Economic weakness Distributor vs. Direct Level of STAAR investment Other macroeconomic factors Refractive Procedure Market Share, 2022 SPAIN ~15% GERMANY ~8% ICL Sales by Country
Slide 21: Americas: Opportunity Abounds
Americas / Opportunity Abounds 21 Growth Variables Myopia prevalence Level of STAAR investment Economy Refractive Procedure Market Share, 2022 UNITED STATES < 5% ICL Sales by Country 22% Americas Sales CAGR (2018-2022)
Slide 22: U.S.: Increasing Knowledge of Customers to Optimize Segmentation
U.S. / Increasing Knowledge of STAAR’s Customers to Optimize Segmentation Commercial Initiative 22 GOAL: Best serve meet/exceed each unique customer’s needs and drive EVO ICL utilization 400+ Practices Annual U.S. Refractive Procedures U.S. Refractive Procedure Revenue 600+ Surgeons U.S. EVO ICL Cus
Slide 23: U.S.: Driving EVO ICL Adoption
U.S. / Driving EVO ICL Adoption 23 PRE-OPERATIVE INTRA-OPERATIVE POST-OPERATIVE Eye measurement and lens size selection Surgery Patient follow-up and understanding outcomes Territory Manager Practice Development Clinical Applications Specialist STAAR recently established a structure and foundation f
Slide 24: U.S.: Significant Increase in Doc Finder Searches
Joe Jonas Campaign Launch U.S. / Significant Increase in Doc Finder Searches Impact of Investments in EVO ICL Awareness and Digital Marketing - Past Six Quarters vs. Prior Year Period 24
Slide 25: U.S.: Best-In-Class Call Center Partnership
U.S. / Best-In-Class Call Center Partnership to Complete EVO ICL Patient Discovery 25 EVO ADVISOR PROGRAM STAAR books appointment directly with clinic Potential Patient fully vetted – qualifies (>-3.0), understands cost, all questions answered CONSUMER GETS EVO DIGITAL MARKETING EVO WEBSITE ORGANIC
Slide 26: Our Goal: Happy EVO ICL Patients and Surgeons Globally
Our Goal / Happy EVO ICL Patients and Surgeons Globally! 26
Slide 27: Target Sales and Operating Model
SALES OPERATING MARGIN 15% 20% Approximately Approximately TO 12% 16% Approximately Approximately TO 3-Year Sales CAGR (2024-2026) GAAP OPERATING MARGIN (2024-2026) ANNUAL GROWTH RANGE Y/Y ANNUAL OPERATING MARGIN $500 TO $550 MILLION Approximately Fiscal 2026 Sales $60 TO $90 MILLION Approximately F
Slide 28: Target Sales and Operating Model – Additional Details
STAAR / Target Sales and Operating Model – Additional Details TARGET SALES AND OPERATING MODEL FY 2023 Outlook* Growth Scenario ~15% CAGR ~20% CAGR Sales Gross Margin OpEx G&A S&M R&D Tax Rate Operating Income $320M $500M $550M +$177M +$227M 81% 81% 78% 69% 65% +300bps +300bps 12% 16% 73% 22% 20% (4
Slide 29: Target Operating Model – Sales Sensitivities
STAAR / Target Operating Model – Sales Sensitivities 29 APAC 2024-2026 3-Year CAGR China ~20% 15% to 20% EMEA AMERICAS 3-Year CAGR 3-Year CAGR U.S. 30% to 50% 10% to 15% 25% to 30% Pace of EVO ICL adoption down the diopter curve (EVO ICL owning -6D and above refractive vision correction) Country mix
Slide 30: 3Q23 Earnings Call Recap
3Q23 Earnings Call Recap Reported 3Q23 Sales of $80.3M and net income of $0.10 per share Sales in-line with previously provided outlook of approximately $80M ICL Sales +13% Y/Y; Units +14% Gross Margin at 79.2% Cash, cash equivalents and investments available for sale at $201.7M U.S. unit growth of
Slide 31: STAAR Knows How to Generate Cash
31 STAAR Knows How to Generate Cash (in millions) * Balance Sheet cash, cash equivalents and investments available for sale was $201.7 million at September 29, 2023. Accounts Receivables balance of $112 million at September 29, 2023, declined to approximately $100 million at October 31, 2023 and is
Slide 32: It's Our Time… It's EVO's Time!
IT’S OUR TIME… IT’S EVO’S TIME!
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