Slide 1: Film Short - Waterlase versus the drill on cross section of a tooth
Film Short - Waterlase versus the drill on cross section of a tooth... 6/9/2010 2 For link on You Tube: http://www.youtube.com/watch?v=QkuwrDajFGY
Slide 2: April 2010 - End-user Shipments Double from Prior Year
April 2010 - End-user Shipments Double from Prior Year (without iLase shipments) 2009 - Bottom-line restructuring to reach breakeven and survive economic turmoil Determining plans to turn top line Product development for 2010 Q4/Q1 2010 - Top-line restructuring in contracts, sales management and pro
Slide 3: Waterlase Penetration by Metropolitan Statistical Area
The US has 420 Metropolitan Statistical Areas (MSAs) Waterlase Penetration ranges from 0% to 61% in Each There is Room to Expand NOW 6/9/2010 4 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration by Metropolitan Statistical Area
Slide 4: Strengths: Top Penetration Areas
Strengths Top 20 Penetration Areas with 6% to 61% Penetration Spread all over the country with varying size Largely a function of effort and location of sales reps Still growing! 6/9/2010 5 Practicing Est MDs Penetration City A, MA 23 14 61% City B, GA 46 11 24% City C, OR 33 4 12% City D, TX 42 5 1
Slide 5: MSAs for Waterlase
420 MSAs for Waterlase 195,000 Dentists in our US Database 160,000 Dentists are Estimated to be Practicing 6,000 of those Dentists use a Waterlase 67 MSAs with over 5% Waterlase Penetration 19 MSAs with over 7% Penetration 4 MSAs with over 10% Penetration 83 MSAs where there are NO Waterlase AT ALL
Slide 6: MSA Expansion Plan
MSA Expansion Plan Expanded Sales and Greater Number of Local Events Many MSAs are small and major ones can be broken down Local Waterlase doctors are being contacted and pursued for smaller events being scheduled at their offices Over 34 sessions in 18 cities start this Friday (May 11) Each MSA has
Slide 7: Sales Replacement and Ramp Up
Sales Replacement and Ramp Up - Nearly All Dental Hires New Proven Sales Leadership Proven from Within 6/9/2010 8 11-13-09 1-1-10 2-1-10 3-1-10 4-1-10 6-1-10 Forecast 8-1-10 Forecast > 2 Years 8 9 9 9 9 11 11 1-2 Years 10 3 3 3 2 4 Months-1 Year 3 3 3 10 14 < 3 Months 2 3 5 11 11 10 11 Total Reps 20
Slide 8: Diode Competitiveness Opening the Door NOW
Diode Competitiveness Opening the Door NOW Low price diodes came into the market heavily in 2009 Fewer diode and general laser leads iLase launched it February of 2010 Demonstration units being shipped Orders are coming in domestically and from international countries for iLase at very good rate iLa
Slide 9: Up-Sell Strategy: A Total Laser Solution for Every Dentist
Up-Sell Strategy A Total Laser Solution for Every Dentist 6/9/2010 10 Entry Level All-Tissue common restorative and pediatric procedures The Personal Laser common, everyday soft- tissue procedures Advanced soft- tissue Whitening & Pain Therapy Total Diode Solution common & advanced soft- tissue proc
Slide 10: Historic Biolase Sales Analysis
Historic 10 Year Biolase Sales Analysis 1998 to 2005 - High growth to slow down 2006 and 2007 - Transition to distribution from direct model Product Lines Under Distribution 2008 and 2009 Sales and Profit Bridge Gave up unprofitable international direct sales, which are expected to rise again under
Slide 11: Historic Analysis 2005 - When growth slowed
Historic Analysis 2005 - When growth slowed In 2004 growth slowed and in 2005: A new CEO and EVP Sales entered the end of 2004 from the medical industry The Waterlase complexity grew with the introduction of the Waterlase MD The Waterlase price was increased over 30% $10,000 Soft-tissue only diode l
Slide 12: Historic Analysis 2006 - Transitions in Leadership and to Distribution
Historic Analysis 2006 Additional Transitions in Leadership and to Distribution In 2006: Waterlase prices increased another 13% The new medical CEO was replaced by a previous CEO The new medical EVP Sales was replaced by a previous EVP Sales At year end, the company transitioned from a direct to a d
Slide 13: Historic Analysis - Products Under Distribution Model
Historic Analysis - Products Under Distribution Model 2006 - 2008 - Diodes and All Other grow double digit, Waterlase declines 2006 Waterlase increases internationally, but decreases domestically 2006 Lasersmile, a $25,000 diode not competitive against $10,000 diode entries 2007 Launch of ezlase dio
Slide 14: 2009 Bridge to Sales Change and Bottom Line Breakeven
2009 Bridge to Sales Change and Bottom Line Breakeven New CEO Appointed March 2009 after bulk of sales losses in Q1...stock was less than $0.50 2008 vs 2009 Bridge - Critical to achieve approximate non-GAAP breakeven in 2009 A. Demo units and C100 stocking orders for all products in 2008 non-repeati
Slide 15: Historic Analysis Actions Taken on New Deal
10 Year Historic Analysis Actions Taken on New Deal Price - Waterlase list price dropped to 2006 levels Diodes - Best diode launched with up-sell strategy Medical device issue - Best internally performing DENTAL sales directors and managers promoted, and new hires from dental Distribution - Added fl
Slide 16: Internal and External Independent Studies on Waterlase Adoption
Internal and External Independent Studies on Waterlase Adoption Internal users (2 years ago): Price - Addressed with iLase and new Waterlase pricing in new deal Speed - Addressed with MD Turbo Training - Addressed over past 2 years External Independent Study (users and non-users last 3 months) Price
Slide 17: Addressing ROI
Addressing ROI Dr. Rosenberg - Top luminary did a specific ROI presentation now included at http://lasercast.biolase.net/ Dr. Golan - Top luminary did an ROI section in his presentation now included at http://lasercast.biolase.net/ $300 to $600 per day - Simplified return message consistently starte
Slide 18: New Article with Independent ROI Approach
NEW Article with new independet ROI approach: Surprising trends in laser usage By Roger P. Levin, DDS Dental Economics - March 2010 6/9/2010 19 Introduction Lasers are an excellent instrument for everyday dentistry. This statement may surprise many dentists. But a recent study indicates that highly
Slide 19: Expanding Beyond 5% and 10% Penetration
Expanding Beyond 5% and 10% Penetration Creating Consumer Demand 6/9/2010 20 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration in various markets
Slide 20: Creating Consumer Demand
Creating Consumer Demand Strength: Large base of happy dentists and even happier patients Weakness: Non-patients are skeptical of claims "too good to be true" and could believe non-Laser dentists before costly advertising...so another way is needed...a way with evidence they can see and from friends
Slide 21: STEP - Build a base of credible evidence
STEP 1 - Build a base of credible evidence Been working on development for last 12 months...well underway Establish a base consumer website with references, the whys, testimonials, news references and links to doctors - Done (Over 100,000 hits year now): http://www.laserdentistry.net/ Establish libr
Slide 22: STEP - Get evidence starting to move
STEP 2 - Get evidence starting to move... Set up Biolase Facebook - Done: Over 1,300 "friends" following NOW already and growing rapidly for regular Biolase updates Hundreds of You Tube examples... Twitter and You Tube sites - Done Personal e-mail blasts (hopefully passed on) to drive friends to see
Slide 23: STEP - Engage the masses
STEP 3 - Engage the masses Multiple efforts underway and in development now that base of support materials at critical mass... Example: Contest for patients to tell their story to their friends and to tie us in, so we can update them on the latest and greatest going forward Doctors get benefits of f
Slide 24: Reaching out to New Portions of the US Market
Reaching out to New Portions of the US Market Before the 2006 Henry Schein deal, estimates are that over 85% of sales were non-core Schein accounts Four years after the deal it is estimated that the opposite is true and few sales are non-core Schein Efforts have only just begun to pursue those other
Slide 25: Step - Engage the masses: advertising and P&G deal
Step 3 - Engage the masses...advertising driving education sites and cross-advertising with doctors...see us on Facebook... Step 4 - Consumer Light Based Products...P&G Deal... Gain comfort with light and lasers in dental care Lasers in all walks of life from internet to grocery check-out Lasers are
Slide 26: Summary
Summary 2009 - Bottom-line restructuring Q4/Q1 2010 - Top-line restructuring SALES FORCE and SALES LEADERSHIP DISTRIBUTION PRODUCTS TODAY AND MORE TO COME COVERAGE EXPOSURE GROWING APRIL 2010 - First month with all recent changes largely effective Waterlase and ezlase end-user shipments both approxi
Slide 27: Thank You
Thank You