Biolase, Inc. · OTC:BIOLQ
Biolase — BIOLASE Technology — Shareholder Meeting (May 2010)
37 slides from Biolase's shareholder meeting presentation, May 5, 2010
Slide 1: Annual Meeting Update and 2010 Plans
Annual Meeting Update and 2010 PlansMay 5, 2010
Slide 2: April 2010 - End-user Shipments Double from Prior Year
April 2010 - End-user Shipments Double from Prior Year (without iLase shipments scheduled for May) 2009 - Bottom-line restructuring to reach breakeven and survive economic turmoilPLAN - Establish an immediate and long-term plan to break several years of declining salesANALYSIS, PLANNING and IMPLEMEN
Slide 3: Analysis and the Drivers of New Successful Beginning
Analysis and the Drivers of New Successful Beginning Analysis of 420 US Metropolitan Statistical AreasEstimated $200 Million Sales Opportunity Before "Chasm"Specific Opportunity Examples and ApproachSales Force Ramp UpiLase Launch, Strategy and Initial ResultsHistoric 10-Year AnalysisIndependent Ext
Slide 4: 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 5/5/2010 4 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration by Metropolitan Statistical Area
Slide 5: MSAs for Waterlase
420 MSAs for Waterlase 195,000 Dentists in our US Database160,000 Dentists are Estimated to be Practicing6,000 of those Dentists use a Waterlase67 MSAs with over 5% Waterlase Penetration19 MSAs with over 7% Penetration4 MSAs with over 10% Penetration83 MSAs where there are NO Waterlase AT ALL270 MSA
Slide 6: Strengths: Top Penetration Areas
Strengths Top 20 Penetration Areas with 6% to 61% Penetration Spread all over the country with varying sizeLargely a function of effort and location of sales repsStill growing! 5/5/2010 6 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 12%
Slide 7: Weaknesses: Locations with No Waterlase
Weaknesses (and great new Opportunities) Examples of locations with NO Waterlase Most locations with no Waterlase are smaller cities that have not yet been penetratedStats show that some of these have the greatest penetration opportunities 5/5/2010 7 Practicing Est MDs Penetration City A, MI 53 0 0.
Slide 8: Opportunities Already in Process
Opportunities Already in Process (...some need acceleration) Examples of MSAs with Penetration Rising Waterlase has footholds in all of the top 100 MSAs in the United StatesPenetration rates vary and are growingThey can be accelerated 5/5/2010 8 City A , IN 432 10 2.3% City B,MI 755 19 2.5% City C,
Slide 9: Threats (Greatest Opportunity) - Penetration Only Beginning
Threats (Greatest Opportunity) - Penetration Only Beginning There are hundreds of mid-size to small cities where the potential for growth is high and we have a foothold already!Limited resources have held back effortsWe are fixing that now 5/5/2010 9 Practicing Est MDs Penetration City A, IN 34 1 3.
Slide 10: 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 further into areas doctors are more willing to travel withinLocal Waterlase doctors are being contacted and pursued for smaller events being scheduled at their officesOver 30 ha
Slide 11: Sales Replacement and Ramp Up
Sales Replacement and Ramp Up - Nearly All Dental Hires New Proven Sales Leadership Proven from Within 5/5/2010 11 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 2
Slide 12: Diode Competitiveness Opening the Door NOW
Diode Competitiveness Opening the Door NOW Low price diodes came into the market heavily in 2009In 2009, sales began declining on ezlase due to competitionFewer diode and general laser leads decrease Waterlase leadsWe completed development on the iLase throughout 2009 and launched it February of 201
Slide 13: Up-Sell Strategy: A Total Laser Solution for Every Dentist
Up-Sell Strategy A Total Laser Solution for Every Dentist 5/5/2010 13 Entry Level All-Tissuecommon restorative and pediatric procedures The Personal Lasercommon, everyday soft- tissue procedures Advanced soft- tissueWhitening &Pain Therapy Total Diode Solutioncommon & advanced soft- tissue procedure
Slide 14: All Pieces Repeat Full Product Line Message
All Pieces Repeat Full Product Line Message 5/5/2010 14
Slide 15: Historic Year Biolase Sales Analysis
Historic 10 Year Biolase Sales Analysis 1998 to 2005 - High growth to slow down2006 and 2007 - Transition to distribution from direct modelProduct Lines Under Distribution2008 and 2009 Sales and Profit BridgeGave up unprofitable international direct sales, which are expected to rise again under dist
Slide 16: Historic Analysis: 2005 - When Growth Slowed
Historic Analysis Conducted Over 12 Months 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 industryThe Waterlase complexity grew with the introduction of the Waterlase MDThe Waterlase price was increased over 30%$10,000 Sof
Slide 17: Historic Analysis: 2006 Transitions in Leadership and Distribution
Historic Analysis Conducted Over 12 Months 2006 Additional Transitions in Leadership and to Distribution In 2006:Waterlase prices increased another 13%The new medical CEO was replaced by a previous CEOThe new medical EVP Sales was replaced by a previous EVP SalesAt year end, the company transitioned
Slide 18: Historic Analysis - Products Under Distribution Model
Historic Analysis - Products Under Distribution Model 2006 - 2008 - Diodes and All Other grow double digit, Waterlase declines2006 Waterlase increases internationally, but decreases domestically2006 Lasersmile, a $25,000 diode not competitive against $10,000 diode entries2007 Launch of ezlase diode
Slide 19: 2009 Bridge to Sales Change and Bottom Line Breakeven
2009 Bridge to Sales Change and Bottom Line Breakeven New CEO Appointed April 2010 after bulk of sales losses in Q1...stock was less than $0.502008 vs 2009 Bridge - Critical to achieve approximate non-GAAP breakeven in 2009A. Demo units and C100 stocking orders for all products in 2008 non-repeating
Slide 20: Historic Analysis Lessons Learned and Studies
10 Year Historic Analysis Lessons Learned and Studies Price - Domestic price point rise from $50K to $80K an issueRise of diodes taking some business, but adding opportunityMedical device sales approaches and sales personnel historically not successful in dental lasers (2 tries in last 4 years)Distr
Slide 21: Historic Analysis Actions Taken on New Deal
10 Year Historic Analysis Actions Taken on New Deal Price - Waterlase list price dropped to 2006 levelsDiodes - Best diode launched with up-sell strategyMedical device issue - Best internally performing DENTAL sales directors and managers promoted, and new hires from dentalDistribution - Added flexi
Slide 22: 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 dealSpeed - Addressed with MD TurboTraining - Addressed over past 2 yearsExternal Independent Study (users and non-users last 3 months)Price - Mo
Slide 23: 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 started
Slide 24: 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 5/5/2010 24 IntroductionLasers are an excellent instrument for everydaydentistry. This statement may surprise many dentists.But a recent study indicates that highly suc
Slide 25: Learning Curve - Can I get this?
Learning Curve - "Can I get this?" Covered in March 2010 Levine article as well as ROIReprinting for distributionTraining websited establishedRefresher training establishedLuminary settings and presentations all standardized10 "push the button" presets with custom capabilitySimplicity/Intuitive natu
Slide 26: Next Steps for Greater Expansion: SWOT Strengths
Next Steps for Greater Expansion Strengths, Weaknesses, Opportunities, Threats (SWOT) Brand Equity - recognized as the leader in laser dentistry and a high tech leader in dentistryStrong in-house engineering and clinical talent and experiencePatent positionDeep knowledge of dental industryRelationsh
Slide 27: SWOT - Weaknesses
SWOT - Weaknesses Despite strong individual talent, we are resource limitedNegative profitability and cash flow from operations for prior 6 years left challenging balance sheet, despite 2009 return to breakeven on non-GAAP basisAlthough not necessarily in the "high-tech chasm" we could be there in s
Slide 28: SWOT - Opportunities
SWOT - Opportunities Approximately 160K practicing dentists in the US, and 700K dentists in worldwide areas where we have distributionWith 67 MSAs above 5% and many well below, vast opportunity still exist for current product and approach with greater sales effort and coverageEncourage/convince dent
Slide 29: SWOT - Threats and Actions
SWOT - Threats and Actions Competitive Lawsuit - Company will vigorously defend alleged "design patent" infringementSupplier power, especially single-source - Relations good and solidified for long-term on key areasDistributor power, especially as we are very dependent on one - the new deal takes st
Slide 30: Expanding Beyond 5% and 10% Penetration
Expanding Beyond 5% and 10% Penetration Creating Consumer Demand 5/5/2010 30 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration in various markets
Slide 31: Creating Consumer Demand
Creating Consumer Demand Strength: We have a large base of happy dentists and even happier patients at those dentists...and a large base of uneducated final consumersWeakness: Non-patients are skeptical of claims "too good to be true" and could believe non-Laser dentists before costly advertising...
Slide 32: Build a Base of Credible Reference Materials
STEP 1 - Build a base of credible and easy to understand reference materials to help win confidence and show evidence of results to doctors, patients and decision makers Been working on development for last 12 months...well underwayEstablish a base consumer website with references, the whys, testimo
Slide 33: Engage References and Referrals
STEP 2 - Work to engage a small base of references and referrals to the "evidence and interesting sites" through "family and friends" Set up Biolase Facebook - Done: Over 600 "friends" following NOW already and growing rapidly for regular Biolase updatesTwitter and You Tube sites - DonePersonal e-ma
Slide 34: Engage Happy Dentists and Customers in Telling Their Story
STEP 3 - Find ways to engage thousands of happy dentists and hundreds of thousands of happy customers in telling their story, with something to go with it...start simple, grow Multiple efforts underway and in development now that base of support materials at critical mass...Example:Contest for patie
Slide 35: 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 accountsFour years after the deal it is estimated that the opposite is true and few sales are non-core ScheinEfforts have only just begun to pursue those other s
Slide 36: Summary
Summary 2009 - Bottom-line restructuring to reach breakeven and survive economic turmoilQ4/Q1 2010 - Top-line restructuring in contracts, sales management and product lineSALES FORCE and SALES LEADERSHIPDISTRIBUTIONPRODUCTS TODAY AND MORE TO COMECOVERAGEEXPOSURE GROWINGAPRIL 2010 - First month with
Slide 37: Thank You
Thank You PRELIMINAR Y