Biolase, Inc. · OTC:BIOLQ
Biolase — Biolase Technology — Investor Presentation (February 2010)
36 slides from Biolase's investor presentation, Feb 25, 2010
Slide 1: BIOLASE
— BIOLASE Sramye HENRYSCHEN > Pater ———<_
Slide 2: Lasers are the Fastest Growing Segment of Dentistry... Biolase is the Market Leader
Lasers are the Fastest Growing Segment of Dentistry... Biolase is the Market Leader 2
Slide 3: Mission of Biolase Technology
The mission of Biolase Technology is to establish its proprietary technologies as the standard of care in medical and dental surgery by using its direct sales force and existing and future partners to educate the medical community about its clinical superiority in cutting, cauterizing, and disinfect
Slide 4: Stock Market Data
Stock Market Data Common shares NASDAQ: BLTI Recent Price $2.02 52-week price range $0.30 - $2.88 Common shares outstanding (10-Q) 24,341,000 Market capitalization $47.5 Million Multiple of sales 0.7X Institutional ownership 24% 4
Slide 5: Safe Harbor Statement
Safe Harbor Statement This presentation may contain forward-looking statements that are based on our current expectations, estimates and projections about our industry as well as management's beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "e
Slide 6: Topics
Topics Waterlase "Hard Tissue" Lasers - The Future Paradigm in Dentistry Soft Tissue Dental Laser Products and Markets New Product Pipeline and Market Opportunity Intellectual Property Financial Overview Investment Highlights 6
Slide 7: Biolase Dental Solutions
Biolase Dental Solutions al j BIOLASE
Slide 8: A Solution for Every Dentist
Entry Level All- Tissue common restorative pediatric The Personal Laser common, everyday soft-tissue procedures Total Diode Solution common & advanced soft-tissue whitening pain therapy Best in Class All-Tissue common & advanced restorative periodontics endodontics cosmetic surgical pediatric Advanc
Slide 9: Introducing Waterlase MD Turbo
Introducing Waterlase MD Turbo(tm)! Breakthrough MD Turbo introduced Mid 2009 Cutting speed increased 4x - now comparable to a high speed drill Lack of speed was a key reason for historic delay in purchase of lasers 9
Slide 10: A Bur vs. WaterLase Cut on Your Enamel
A Bur vs. WaterLase Cut on Your Enamel (Hardest Surface of the Tooth) VISIBLE MICROFRACTURES Drill Waterlase SEM's courtesy of Loma Linda University School of Dentistry, Loma Linda, California, USA Bur Cut Laser Cut Note smear layer (dead tissue and bacteria) of cut enamel and widespread microfractu
Slide 11: Zone of Necrosis: the Depth of Tissue Damaged Around Incision
Zone of Necrosis: the Depth of Tissue Damaged Around Incision Waterlase: 5-10 Cell layers Diode laser: 15-25 Cell layers Scalpel: 100-300 Cell layers Electrosurgical Unit: 1000 - 1500 cell layers 11
Slide 12: Laser Surgery Changes the Healing Process
Laser Surgery Changes the Healing Process Barrier Clot Inflammation Tissue Regeneration Tissue Remodeling Tissue Regeneration Tissue Remodeling Normal Healing Cascade Laser Wound Healing Cascade Injury Healing Complete Healing Complete 12
Slide 13: Waterlase MD Turbo Advantages vs. Traditional Instrumentation
13 Waterlase MD Turbo Provides significant advantages for both Doctors and Patients vs. Traditional Instrumentation l Waterlase MD Turbo Indication Traditional Instrumentation No heat, high pitch ,noise or vibration , fractures & minimal or no pain with greatly reduced need for injection of anesthet
Slide 14: Deep Pocket Therapy with New Attachment
Introducing Deep Pocket Therapy with New Attachment(tm) using the Waterlase MD(tm) Strong correlation between periodontal disease and coronary artery disease, pre-term low birth weight babies, etc. now established Minimally invasive alternative therapy for moderate to advanced gum disease Promotes c
Slide 15: Endodontics: Waterlase MD Only FDA-cleared Laser
Endodontics: Waterlase MD is the Only Laser FDA-cleared for Access, Cleaning & Enlargement, and Disinfection of the Root Canal 15 Disinfection Of over 15 million root canal procedures performed annually in US, 6% require retreatment - up to 900,000 failures a year Principal cause is re-infection wit
Slide 16: Waterlase Revenues vs Total Revenues
Waterlase Revenues vs Total Revenues The direct sales model and lower end-user prices have historically driven superior demand growth Distributors may not adequately incentivize their sales force and may carry alternative equipment with varying economics to the rep. 16 Changed to distribution model
Slide 17: Waterlase Domestic Penetration: $12 Billion Market
Waterlase Domestic Penetration If Every Dentist in America had a Waterlase $12 Billion Market - Our Largest Opportunity 17 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion $12 Billion
Slide 18: 3% of Domestic Dentists Have Waterlase Today
Waterlase Domestic Penetration 3% of Domestic Dentists Have Waterlase Today Roughly $0.3 Billion Domestic Sales Primarily Over 6 Years 18 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion 3% US Penetration Today
Slide 19: Penetration Varies With Over 10% in Some Markets
Waterlase Domestic Penetration Penetration Varies With Over 10% in Some Markets Potential $1.9 Billion - In 5 Years, $300MM Yr Avg. 19 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration in various markets
Slide 20: Long-Term Goal Beyond Innovators and Early Adopters
Waterlase Domestic Penetration Long-Term Goal of Stretching Beyond Innovators and Early Adopters 20 $0.3 Billion $1.6 Billion $4.1 Billion $4.1 Billion $1.9 Billion Penetration in various markets
Slide 21: Diode (soft tissue) Dental Laser Market Opportunity
Diode (soft tissue) Dental Laser Market Opportunity Diode (soft tissue) Dental Laser Market Opportunity 21 Source: iData (CHART) 2009 US Diode Laser Market (US$M) Estimated US Diode Laser Market Opportunity $1.2 Billion
Slide 22: ezlase: The Only Total Diode Dental Laser Solution
22 22 ezlase(tm): The Only Total Diode Dental Laser Solution ezlase Whitening and Pain Therapy Handpiece
Slide 23: CMC LARS
CMC LARS ie ’ BIOLASE
Slide 24: iLase - The world's first personal laser
2 iLase - The world's first personal laser You can carry the entire system in just one hand, or on a tray Innovative finger-switch design No foot pedal No power cord No external controls or interfaces Complete freedom of movement No need to share lasers ...the iLase is the only personal laser! Note:
Slide 25: iLase - The next discontinuous change to dentistry
25 iLase - The next discontinuous change to dentistry We believe the iLase will become part of a dentist's or hygienist's regular set of tools Minimally invasive dentistry for everyone - market opportunity of hundreds of thousands of units No impact on operatory working environment Set-up in seconds
Slide 26: New Market Opportunities & Product Pipeline
New Market Opportunities & Product Pipeline P & G - Laser Toothbrush and Other Light Emitting Devices Chiropractic & Sports Medicine Veterinary Medicine Ophthalmology Opportunity - Waterlase for Presbyopia Dermatology 26
Slide 27: Diolase for Chiropractic and Sports Medicine
Diolase 10 for Chiropractic and Sports Medicine Introduced to marketplace of approx. 60,000 chiropractors Dec. 2009 Product offers advantages in price, performance and ergonomics over competitive lasers Sales manager and 6 independent sales reps covering the US Provides highly effective, non-pharmac
Slide 28: Ophthalmology - Waterlase for Presbyopia
Ophthalmology - Waterlase for Presbyopia Presbyopia is the need to wear reading glasses Results from early stage clinical trials are promising and the Company is searching for a strategic partner to continue the trials and seek FDA clearance to treat Presbyopia through Laser Assisted Scleral Ablatio
Slide 29: Dominant Intellectual Property Portfolio
29 Dominant Intellectual Property Portfolio Worldwide portfolio of patents, trademarks, trade secrets, copyrights and other intellectual property rights 131 Issued Patents with an additional 169 patents pending Covers use of laser technologies and fluids for dental medical, cosmetic and some industr
Slide 30: Third Quarter & Nine-Month Revenue by Product
Third Quarter & Nine-Month Revenue by Product Sales by Product Line (in $Millions) Percent of Sales Q3 YTD Q3 YTD 9/30/09 9/30/09 9/30/09 9/30/09 Waterlase Family 7.0 18.0 58% 63 % Diolase Family 1.8 6.0 15% 19 % Total Lasers 8.8 24.0 73% 82 % Consumables, Service, Other 3.0 7.8 25% 13 % License and
Slide 31: Third Quarter & Nine-Month Operating Highlights
Third Quarter & Nine-Month Operating Highlights Q3 YTD 9/30/09 9/30/09 Net Revenue $12.1 $33.0 Gross Profit $5.8 $15.7 % revenue 48% 48% Operating Expenses $4.9 $17.3 % revenue 40% 52% Operating Profit (Loss) $0.9 ($1.6) % revenue 7% (5%) Net Income (Loss) $0.9 ($1.5) Earnings per share $0.04 $(0.06
Slide 32: Q3 Balance Sheet Highlights
Q3 Balance Sheet Highlights 9/30/09 6/30/09 Cash and Equivalents $3.9 $3.5 Net Working Capital $5.8 $4.0 Total Assets $23.3 $22.4 Stockholders' Equity $9.1 $7.7 ($ in millions) 32
Slide 33: Experienced Management Team
Experienced Management Team 33
Slide 34: Worldwide Distribution Network
Worldwide Distribution Network North America Wayne R. Harrison, DDS, Director of US Sales Tannis Sigurdson, Director of Canadian Sales 4 Regional Managers in the United States 24 Direct Sales Representatives and growing International William Brown, VP International plus finance and customer support
Slide 35: Summary
Summary 35 Biolase expects to Enter a New Growth Phase New approach to Core Market iLase - Expected to Expand the Market as the New Paradigm in Soft Tissue lasers Future lasers - Smaller, Faster, Cheaper, Better Expand Revenue Opportunity By Partnering Core Technologies in New Markets
Slide 36: Thank You
— BIOLASE _— Thank You. ,
Biolase Technology — Investor Presentation (February 2010) on 6ix