Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Canaccord Growth Conference 2016
22 slides from Staar Surgical's conference presentation, Aug 10, 2016
Slide 1: Canaccord Growth Conference August 10, 2016
C ANACCORD G ROWTH C ONFERENCE A UGUST 10, 2016 Evolution in Visual Freedom ™ 1
Slide 2: Forward-Looking Statements
™ ™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH FORWARD - LOOKING STATEMENTS All statements in this presentation that are not statements of historical fact are forward - looking statements, including stateme nts about any of the following: any projections of earnings, revenue, sales, profit margins,
Slide 3: STAAR Surgical Is... a Leading Developer of Premium Implantable Lenses
™ ™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH STAAR SURGICAL IS… … a Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses for Refractive Vision Correction Implantable Collamer® Lens or “ICL”™ - A Premium Refractive Procedure Delivering Visual Freedom to the Patient in Need of
Slide 4: STAAR Surgical Is Also... Cataract Lens Replacement
™ ™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH STAAR SURGICAL IS ALSO… 26% Q2 YTD 2016 Lens Revenue … a Developer, Manufacturer and Marketer of Premium Implantable Lenses for Cataract Lens Replacement • Intraocular Lens (IOL) - Used to Replace the Natural Lens after Cataract Surgery 4
Slide 5: Over One Million Lens Implants with Exclusive Collamer Material
™ ™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH OVER ONE MILLION LENS IMPLANTS (ICL’S AND IOL’S) WITH EXCLUSIVE COLLAMER ® MATERIAL … » Biocompatibility, which means compatible with your body’s natural chemistry, is a key advantage of Collamer. » A layer of fibronectin is believed to form around the
Slide 6: Global Leader in Phakic IOL ICL Implantation
™ ™ GLOBAL LEADER IN PHAKIC IOL “ICL” IMPLANTATION 6 CAGR: 9% T OTAL R EVENUE 17% ICL U NITS 10 - Year Total Revenue & ICL Unit Growth 85% of Total Revenue Outside the U.S.
Slide 7: Current Market: LVC Refractive Procedures
™ ™ CURRENT MARKET: LVC REFRACTIVE PROCEDURES ▪ China 875,000 ▪ USA 630,000 ▪ India 180,677 ▪ Brazil 162,640 ▪ Germany 135,340 ▪ Italy 105,229 ▪ UK 97,540 ▪ Spain 92,920 ▪ Japan 82,650 ▪ South Korea 81,250 ▪ ROW 1,196,261 Source: 2015 Market Scope 3.6M Global LVC Refractive Procedures Eve Torres Gra
Slide 8: Myopia a Growing Concern in Asia
™ ™ MYOPIA A GROWING CONCERN IN ASIA: 30 M ILLION IN C HINA S UFFERING FROM H IGH M YOPIA * Excerpts from Published Articles on Myopia Adjusting Vision Health Policies: Now or Never -- A Research Report on the Vision Health of Chinese People "The number of people with high myopia alone is far greate
Slide 9: Myopia a Growing Concern in the U.S.
™ ™ MYOPIA A GROWING CONCERN IN THE U.S. N EARLY 10 M ILLION A DULTS F OUND TO B E S EVERELY N EARSIGHTED IN THE U NITED S TATES Excerpts from Published Articles on Myopia A study was conducted jointly by investigators from the American Academy of Ophthalmology, Genentech, the National Institutes of
Slide 10: Myopia a Growing Global Concern
™ ™ MYOPIA A GROWING GLOBAL CONCERN… * HIGH MYOPIA COULD IMPACT ALMOST 1 BILLION PEOPLE BY 2050 Excerpts from Published Articles on Myopia “ In the journal Ophthalmology, a new paper looks at worldwide trends in myopia by doing a meta - analysis of 145 studies involving 2.1 million total participant
Slide 11: What's Possible? Exponential Growth
™ ™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH WHAT’S POSSIBLE?... EXPONENTIAL GROWTH » Build the Visual Freedom Market for Myopia… Exponential Growth of Patients with Mid - to - High Myopia » Move out of the shadows of other Refractive Procedures such as LASIK and PRK… Premium and Primary ICL » Ce
Slide 12: Our Focus 2015-2017
™ ™ » Engender Culture of Quality - FDA Remediation and Systemic Change » Build R & D Continuum: Myopia/ Presbyopia/ Cataract Care » Develop Global Clinical Validation and Clinical Utility Competency » Create an Extraordinary Surgeon and Patient Experience » Invest in Proprietary Technology and Proc
Slide 13: 2015 Strategic Priorities/Accomplishments
™ ™ » Met all internal requirements on budget and on time for FDA r emediation and Quality System rebuild » Developed new employee led Culture of Quality initiative reinforcing Quality focus at STAAR » Achieved Record Total Revenue and ICL Unit Sales » Hired top talent in R&D, Clinical and Medical A
Slide 14: 2015 Strategic Priorities/Accomplishments (continued)
™ ™ » Stabilized production with significant backorder issues resolved by mid - year and infrastructure assessment completed » Recruited clinically lauded ophthalmic surgeons for Working Groups with special emphasis on Presbyopia » Completed Intellectual P roperty patent estate review and secured tr
Slide 15: 2016 Strategic Priorities
™ ™ » FDA Remediation and Continuation of Quality System Rebuild - $2.1M » Create the Visual Freedom Market for Implantable Lenses - $2.0M » Develop Strategic Partnerships with Large Transformational Partners » Establish Certified ICL Training Institute “CITI” – Fortify Surgeon Skills » Begin Clinic
Slide 16: 2016 Strategic Priority: Create the Visual Freedom Market
™ ™ 2016 STRATEGIC PRIORITY Create the Visual Freedom Market for Implantable Lenses » Rebranded STAAR – May 2016 » Launched Evolution in Visual Freedom™ Global Websites by Country… discovervisianicl.com discoverEVO.com » Launching EVO+ (larger optic lens) underway in Europe » Launching EVO in Canada
Slide 17: 2016 Strategic Priority: Innovate and Develop Products
™ ™ 2016 STRATEGIC PRIORITY Innovate and Develop Products, Materials, Delivery Systems » Will perform first - in - man clinical trial to assess ICL with Extended Depth of Field (EDOF) for Presbyopic Patient … "Need to Read" » Completing Pre - Loaded Injector development for ICL » Completing Cataract
Slide 18: 2016 Strategic Priority: Strategic Partnerships
™ ™ 2016 STRATEGIC PRIORITY “We believe that our partnership with STAAR will provide a strong collaboration projected to include surgeon training, clinical studies, patient registries, local inventory including the more custom Toric lenses, patient information both in person and through digital comm
Slide 19: Patient Outreach – Educate/Implant
™ ™ 2016 STRATEGIC PRIORITY PATIENT OUTREACH – EDUCATE/IMPLANT 19
Slide 20: Recent Financial Results Q2 2016 GAAP
™ ™ Income Statement ($ millions, except per share) Q2 2016 Q2 2015 Revenue $ 21.0 $ 18.7 Gross Profit $ 14.6 $ 12.4 Gross Profit Margin 69.7% 66.3% Operating Expenses $ 16.8 $ 14.1 Other Income (Expense) $ (0.1) $ 0.3 Income (Loss) Before Taxes $ (2.3) $ (1.4) Net Income (Loss) $ ( 2.1) $ (1.6) Net
Slide 21: Recent Financial Results Q2 2016 Non-GAAP
™ ™ R ECENT F INANCIAL R ESULTS Q2 2016 N ON - GAAP Adjusted Net Income ($ millions, except per share) Q2 2016 Q2 2015 GAAP Net Income (Loss) $ (2.1) $ (1.6) Foreign Currency Impact $ 0.4 $ (0.2) Stock - Based Compensation Expense $ 0.3 $ 0.8 Remediation Expense $ 0.5 $ 1.1 Adjusted Net Income (Loss
Slide 22: Canaccord Growth Conference August 10, 2016
C ANACCORD G ROWTH C ONFERENCE A UGUST 10, 2016 Evolution in Visual Freedom ™ 22