Iridex Corporation · NASDAQ:IRIX
Iridex — Merger or Acquisition (March 2021)
13 slides from Iridex's merger presentation, Mar 2, 2021
Slide 1: Strategic Collaboration Overview
Strategic Collaboration Overview March 2021 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements made a
Slide 3: Building Iridex Growth in Glaucoma and Retinal Disease Treatment
Building Iridex Growth in Glaucoma and Retinal Disease Treatment 2 | Strategic Collaboration Overview Product and Technology Margin and Cost New Leadership and Direction Shift Operational Execution Implemented operational improvements to significantly reduce costs and increase efficiencies Net Cash
Slide 4: Strategic Collaboration with Topcon Combines Two Leaders in Glaucoma and Retinal Disease Treatment
Strategic Collaboration with TopCon Combines Two Leaders in Glaucoma and Retinal Disease Treatment Delivers Increased Capital to Drive Iridex Growth Leverages Mutual Global Distribution Strength Improves Scale to Generate Design, Manufacturing and Marketing Efficiencies 3 | Strategic Collaboration O
Slide 5: Topcon Overview
Overview Headquartered in Tokyo Established in 1932 $1.3 billion in revenue 79% sales Outside Japan 4,700+ employees Primary Businesses Positioning systems Smart infrastructure Eyecare Eye Care Business $430M in sales in 2019 5 production sites 8 Development centers 26 Global sales office Number 1 i
Slide 6: Strategic Rationale for Collaboration
Strategic Rationale for Collaboration 5 | Strategic Collaboration Overview $19.5M of additional capital to accelerate Iridex glaucoma product growth Capital $10M equity investment for 10+% stake by a Strategic Partner endorses Iridex Opportunity Comprehensive distribution combination of two leaders
Slide 7: IRIX and Topcon – 2019 Proforma Revenue
IRIX and Topcon – 2019 Proforma Revenue 6 | Strategic Collaboration Overview PASCAL Distributors Select Distribution 2019 Org Structure Distributors PASCAL Distributors TxCell/PASCAL IRIX sells to Topcon Proforma Org Structure Retina 30M 43.5M Glaucoma 13M 30% 70% Iridex 2019 Revenue Retina 39M 52.0
Slide 8: Transaction Economics
Transaction Economics 7 | Strategic Collaboration Overview
Slide 9: Accelerating Glaucoma Market Penetration
Accelerating Glaucoma Market Penetration Increased Funding for Growth Sales Promotion Expansion Market Development Expansion Separate and Scale US Sales Force 12 Focused on Glaucoma 6 Focused on Retina Distribution in AsiaPacific and EMEA Leverage large Topcon sales organization, promotional scale…
Slide 10: Strategic Boost in Retinal Disease Treatment
Strategic Boost in Retinal Disease Treatment Lead the market in scanning laser technology, with over 50% global market share Shifts competitors to collaborators Improve scale in design and manufacturing Consolidates Iridex OUS distribution channels Approximately 60% of OUS sales shifted to Topcon Re
Slide 11: Financial Considerations
Financial Considerations 10 | Strategic Collaboration Overview Certain proceeds from Topcon purchase of Exclusive Distribution to be classified as revenue Amount of revenue recognized is subject to fair market valuation of the transaction This revenue is of non-recurring nature and Iridex will provi
Slide 12: Next Steps
Next Steps 11 | Strategic Collaboration Overview March Funding to occur at closing Anticipated Close in early March Upon Closing, Iridex absorbs Pascal production and product development Integration Subject to existing agreements and regulatory requirements by region Transfer of distribution rights
Slide 13: Thank You
Thank You