Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Investor Day (November 2017)
32 slides from Staar Surgical's investor day presentation, Nov 16, 2017
Slide 1: Investor and Analyst Day
A Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses for Refractive Vision Correction Investor and Analyst Day NASDAQ: STAA November 16, 2017 ™ Evolution in Visual Freedom
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements in this presentation that are not statements of historical fact are forward-looking statements, including statements about any of the following: any projections of earnings, revenue, sales, profit margins, cash, working capital, effective tax rate or any oth
Slide 3: A Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses
A Leading Developer, Manufacturer and Marketer of BUILDING PremiumAImplantable FOUNDATION FOR Lenses forCONSISTENT GROWTH Refractive Vision Correction ICL™ • ICL™ (phakic IOL) delivers ICL™ - In Harmony with the Eye Visual Freedom to patients Implantable Collamer® Lens needing Myopic (distance visio
Slide 4: ICL - The Collamer Material Advantage
ICL™ - THE COLLAMER MATERIAL ADVANTAGE In Harmony with the Natural Eye BUILDING A FOUNDATION FOR CONSISTENT GROWTH • Biocompatible ICL™ • Offers UV protection Natural Lens Iris • Quiet in the eye - A layer of fibronectin is Cornea believed to form around the lens, inhibiting white cell adhesion to t
Slide 5: Global Leader in Phakic IOL ICL Implantation
GLOBAL LEADER IN PHAKIC IOL “ICL” IMPLANTATION 10-Year Total Revenue & ICL Unit Growth Revenue ICL Units $82.4M $77.1M $75.0M $72.2M $62.8M $63.8M $55.0M $51.1M $49.8M $35.6M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR: 10% TOTAL REVENUE;
Slide 6: ICL - The Patient Experience
ICL™ – THE PATIENT EXPERIENCE NEED OUTREACH-EDUCATION IMPLANT STEP 1 STEP 2 Patient need and awareness Surgery day Outreach, education and eye surgeon visit Local anesthetic, minimally invasive Decision to use ICL Quick 20-30 minute procedure Lenses generally available within 2 to 7 days No dry eye,
Slide 7: Patient Testimonials: Upgradeable, Reversible
PATIENT TESTIMONIALS: “Upgradeable” “Reversible” We invite you to visit staar.com, discoverevo.com and discovericl.com ™
Slide 8: Myopia
MYOPIA A Growing Global Concern… High Myopia Could Impact Almost 1.0 Billion People by 2050… • An inability to focus at distance - Genetic and/or Environmental Factors • Researchers expect dramatic increase in myopia - More screen use and near vision work - Less time spent outdoors - Positive correl
Slide 9: Presbyopia
PRESBYOPIA A New Refractive Market Opportunity Impacts 1.7 Billion People Globally… • An age-related loss of lens accommodation ▪ First symptoms generally appear at age 42 to 44 ▪ An inability to focus when reading • Surgical refractive options: Monocular/LASIK/RLE • An ICL refractive solution could
Slide 10: Our Focus 2015-2017
CLICK OURTO EDIT FOCUS M-ASTER 2015 2017 TITLE STYLE ➢Click AtoFOUNDATION BUILDING edit Master text FOR styles GROWTH CONSISTENT ▪ Second level ✓ Engender Culture o Thirdoflevel Quality - FDA Remediation and Systemic Change ✓ Build R & D Continuum: CentraFLOW®/ Presbyopia/ Cataract Care ✓ Invest in
Slide 11: Our Focus 2018-2020
2018-2020 OUR FOCUS WORKING TO DELIVER STRONG GROWTH & SUSTAINED PROFITABILITY ➢ Achieve and Retain Compliance with All Regulatory Bodies – Culture of Quality ➢ Successfully Build the Visual Freedom Market for Implantable Lenses: Tangibly Impact Surgeon Engagement, Practice Development and Patient D
Slide 12: What Business Are We In?
2018-2020 WHAT BUSINESS ARE WE IN? STAAR is in the patient vision satisfaction business by providing spectacle independence and quality of vision through lens-based surgical correction of refractive error. The business model for Surgeons, Practice Management and STAAR is one of high perceived value
Slide 13: STAAR's Current & Future Positioning
2018-2020 STAAR’S CURRENT & FUTURE POSITIONING ➢STAAR is the market leader and best refractive surgical solution and patient experience for high Myopia. ➢STAAR is focused on becoming a leading provider of refractive surgical solution and patient experience for mid-Myopia. ➢STAAR aims to become a mar
Slide 14: TAM - 3.6 Million Refractive Procedures
TAM – 3.6 MILLION REFRACTIVE PROCEDURES* US OUS Global Vision Correction People/ Total People/ Total People/ Total Method Procedures Market Procedures Market Procedures Market (mil) ($mil) (mil) ($mil) (mil) ($mil) Contact Lenses 46.9 $4,525 190.0 $7,317 236.9 $11,842 Contact Lens Solution 46.9 $1,3
Slide 15: Refractive Surgeons/Country (2016)
REFRACTIVE SURGEONS/COUNTRY (2016) Top 15 ICL Countries 3,519 ~40% 1,711 741 470 426 450 295 326 340 364 58 52 17 18 24 China South Korea India Spain United Germany Saudi Japan France Egypt Argentina Italy Sweden Belgium Iran States Arabia ™
Slide 16: Refractive Vision Correction Procedures (2016)
REFRACTIVE VISION CORRECTION PROCEDURES (2016) Top 15 ICL Countries 901,250 34.8% 635,000 24.6% 209,576 156,237 144,949 118,450 94,778 75,750 74,324 85,000 17,685 25,834 10,301 11,254 26,164 China South Korea India Spain United Germany Saudi Japan France Egypt Argentina Italy Sweden Belgium Iran Sta
Slide 17: STAAR's Target Market Opportunity 2M Eyes
STAAR’S TARGET MARKET OPPORTUNITY 2M EYES 3.6 Million Refractive Procedures Performed by Eye Surgeons Annually BUILDING A FOUNDATION FOR CONSISTENT GROWTH Current & Future Products to Capture Share: EVO; EVO with Larger Optic (EVO+); EVO with EDOF for Presbyopia; Pre-Loaded EVO and Pre-Loaded Visian
Slide 18: 2018-2020: Strategic Imperatives
2018-2020: STRATEGIC IMPERATIVES Working to Deliver Strong Growth & Sustained Profitability Build Global Awareness of the ICL ➢All High Myopes Need to Know About the ICL ➢The Patient Experience for the High Myope with ICL vs. Glasses and Contact Lenses Should Become a “A Wished for Rite of Passage”
Slide 19: 2018-2020: Strategic Imperatives
2018-2020: STRATEGIC IMPERATIVES Working to Deliver Strong Growth & Sustained Profitability Clinical Affairs: Clinical Validation U.S. ➢Toric ICL Approval ➢Toric ICL PAS (Post Approval Study) ➢EVO IDE and Clinical Trial ➢EVO PAS (Post Approval Study) ➢EVO Presbyopia EDOF IDE Outside the U.S. ➢Europe
Slide 20: Strategic Imperatives: (2018-2020)
STRATEGIC IMPERATIVES: (2018-2020) Working to Deliver Strong Growth & Sustained Profitability Innovate/Develop, Premium Lenses & Delivery Systems ➢EVO EDOF Presbyopia Toric ➢Collamer Material IOL EDOF Presbyopia ➢Second Generation Collamer Material ➢Supplementary IOL for Sulcus Placement: Piggyback
Slide 21: Strategic Imperatives: (2018-2020)
2018-2020: STRATEGIC IMPERATIVES Working to Deliver Strong Growth & Sustained Profitability Launch & Deliver Foundations 2020: Optimize: Invest Incremental $1.0M ➢Raw Materials Processing ➢Collamer Manufacturing ➢Lens Machining ➢Optical Measurement ➢QC Automation Target: $1.2M Annualized Cost Reduct
Slide 22: Commercial Infrastructure Business Model
2018-2020: STRATEGIC IMPERATIVES Working to Deliver Strong Growth & Sustained Profitability Commercial Infrastructure Business Model Sales: Direct ➢U.S., Canada, UK, Spain, Germany, Japan Sales: Hybrid (Shared STAAR w/Distributor) ➢China, Korea, India Sales: Distributor ➢Rest of Europe, Middle East,
Slide 23: STAAR Surgical Outlook
THREE-YEAR FINANCIAL OUTLOOK (2018-2020) STAAR SURGICAL OUTLOOK ➢ REVENUE GROWTH GOALS: Assumes U.S. Market Open for New Products ➢ 15% to 20% Increase Annually ➢ Stretch Target 25+% ICL Unit Growth Annually ➢ PROFITABILITY IMPROVEMENT: Assumes Base Business Spending Largely Scalable ➢ Added Investm
Slide 24: STAAR Surgical Outlook
THREE-YEAR FINANCIAL OUTLOOK (2018-2020) STAAR SURGICAL OUTLOOK ➢ REVENUE ASSUMPTIONS ▪ U.S. TICL Approval 2018 ▪ EU & U.S. Preloaded ICL Launch 2018 – ROW to Follow Throughout Planning Period ▪ Korea Resumes Sales Growth 2018 ▪ EU ICL Presby Launch 2019 ▪ Moderate Change in ASP’s throughout Plannin
Slide 25: Millions of Eyes Global Opportunity - Myopia & Presbyopia
2018 to 2020 ▪ “Millions of Eyes” Global Opportunity – Myopia & Presbyopia ▪ Revenue Growth Goal 15% – 20% Annually ▪ Targeting Achievement of Sustained Profitability within Period ▪ Gross Margin & Cash Generation Growth Continues ▪ EVO ICL Product Family Expansion: Myopia & Presbyopia EDOF ▪ Growin
Slide 26: Appendix
A Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses for Refractive Vision Correction APPENDIX Q3 2018 AND YTD FINANCIAL SLIDES NASDAQ: STAA November 16, 2017 ™ Evolution in Visual Freedom
Slide 27: Financial Summary
Q3 2017 GAAP FINANCIAL SUMMARY Income Statement ($ millions, except per share) Q3 2017 Q3 2016 Revenue $ 23.5 $ 20.1 Gross Profit $ 16.8 $ 14.9 Gross Profit Margin 71.8% 74.2% Operating Expenses $ 15.8 $ 16.6 Other Income (Expense) $ 0.5 $ 0.0 Income (Loss) Before Taxes $ 1.6 $ (1.7) Net Income (Los
Slide 28: Financial Summary
Q3 2017 NON-GAAP FINANCIAL SUMMARY Adjusted Net Income ($ millions, except per share) Q3 2017 Q3 2016 GAAP Net Income (Loss) $ 1.2 $ (1.8) Foreign Currency Impact $ (0.4) $ (0.0) Stock-Based Compensation Expense $ 0.8 $ 0.4 Remediation Expense $ 0.0 $ 0.5 Adjusted Net Income (Loss) $ 1.5 $ (0.9) Adj
Slide 29: September YTD 2017 Results
SEPTEMBER YTD 2017 RESULTS Key Takeaways • Net Sales of $65.8 Million Up 9% from the Prior Year Period • ICL Sales Up 15% and Units Up 15% from the Prior Year Period • IOL Sales Down 13% from the Prior Year Period • Operating Expenses Improved to $15.8 Million from $16.6 Million in the Prior Year Pe
Slide 30: Gross Margin Expansion
CLICK EDIT MEXPANSION TO MARGIN GROSS ASTER TITLE STYLE ➢Click to edit Master text styles 80.0% 70.0% ▪ Second level o Third level 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2014 2015 2016 9 Mos. 2017 GROSS MARGIN ICL MIX ™
Slide 31: Cash
CLICKCASH TO -EDIT MASTER TITLE STYLE $ Millions ➢Click to edit Master text styles 18 16 ▪ Second level o Third level 14 12 10 8 6 4 2 0 FYE 2014 FYE 2015 FYE 2016 9 Mos. 2017 CASH Linear (CASH) ™
Slide 32: Investor and Analyst Day
A Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses for Refractive Vision Correction Investor and Analyst Day NASDAQ: STAA November 16, 2017 ™ Evolution in Visual Freedom
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