Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Investor Presentation (August 2017)
22 slides from Staar Surgical's investor presentation, Aug 8, 2017
Slide 1: Investor Presentation August 2017 - Evolution in Visual Freedom
INVESTOR PRESENTATION NASDAQ: STAA August 2017 Evolution in Visual Freedom ™
Slide 2: Forward-Looking Statements
™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH F ORWARD - L OOKING S TATEMENTS All statements in this presentation that are not statements of historical fact are forward - looking statements, including statements about any of the following : any projections of earnings, revenue, sales, profit margins
Slide 3: A Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses
™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH A Leading Developer, Manufacturer and Marketer of Premium Implantable Lenses for Refractive Vision Correction FY16 percent of lens revenue; STAAR also sells injectors that were 4% of total FY16 revenue; the ICL with central port is not available in the U
Slide 4: 10-Year Total Revenue & ICL Unit Growth
™ ™ $35.6M $49.8M $51.1M $55.0M $62.8M $63.8M $72.2M $75.0M $77.1M $82.4M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ICL Units GLOBAL LEADER IN PHAKIC IOL “ICL” IMPLANTATION CAGR: 10% T OTAL R EVENUE 15% ICL U NITS 10 - Year Total Reve
Slide 5: ICL - The Collamer Advantage
™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH ICL™ - THE COLLAMER ADVANTAGE • The biocompatible Collamer material is bonded with UV absorbing chromophore into a poly - HEMA based copolymer that offers UV protection . • A layer of fibronectin is believed to form around the lens, inhibiting white cell
Slide 6: ICL - The Patient Experience
™ ICL™ – THE PATIENT EXPERIENCE NEED OUTREACH - EDUCATION IMPLANT Photos from Asia Pacific region where STAAR has S trategic C ooperation A greements. STEP 1 Patient need and awareness Outreach, education and eye surgeon visit Decision to use ICL Lenses generally available within 2 to 7 days STEP 2
Slide 7: Patient Testimonials
™ PATIENT TESTIMONIALS We invite you to visit staar.com, discoverevo.com and discovericl.com
Slide 8: Myopia: A Growing Global Concern
™ MYOPIA A Growing Global Concern… High Myopia Could Impact Almost One Billion People by 2050… • Researchers expect dramatic increase in myopia - More screen use and near vision work - Less time spent outdoors - Positive correlation between education level and myopia incidence • Patients face risks
Slide 9: Presbyopia: A New Refractive Market Opportunity
™ PRESBYOPIA A New Refractive Market Opportunity Impacts 1.7 Billion People Globally… • An inability to focus on near distances - An age - related loss of lens accommodation - First symptoms generally appear age 42 to 44 • Surgical Refractive options - Monofocal Corneal Inlays (KAMRA, Raindrop) - La
Slide 10: Current Market Opportunity: 3.8 Million Refractive Procedures
™ BUILDING A FOUNDATION FOR CONSISTENT GROWTH CURRENT MARKET OPPORTUNITY 3.8 Million Refractive Procedures Performed by Eye Surgeons Annually • Existing Market S hare C apture (estimated*) - Lasik ~ 90% of refractive market - STAAR ICL ~ 3 % of refractive market - STAAR ICL ~ 80% of phakic IOL segme
Slide 11: Strategic Focus: Building a Foundation for Consistent Growth
™ STRATEGIC FOCUS Building a Foundation for Consistent Growth (2015 – 2017) Investments targeted to rebuild and strengthen base business model I. Engender Culture of Quality • FDA Remediation and Systemic Change II. Build R & D Continuum • Myopia/ Presbyopia/ Cataract Care III. Develop Clinical Expe
Slide 12: Strategic Progress (2015-2017)
™ STRATEGIC PROGRESS Building a Foundation for Consistent Growth (2015 - 2017) 1. Acquired and validated New Quality Management System … established Culture of Quality 2. Hired Top Talent in R&D, Clinical and Medical Affairs, Quality and Operations 3. Developed and closed Transformational Strategic
Slide 13: Strategic Progress (2015-2017)
™ STRATEGIC PROGRESS Building a Foundation for Consistent Growth (2015 – 2017) 5. Rebranded STAAR… Launched Evolution in Visual Freedom™ global websites in all major markets… discovervisianicl.com and discoverEVO.com 6. Successfully Launched EVO+™ Expanded Optic ICL Lenses in Europe with clinical pa
Slide 14: Strategic Progress (2015-2017)
™ STRATEGIC PROGRESS Building a Foundation for Consistent Growth (2015 - 2017) 9. Built Clinical and Medical Affairs competency … completed global meta analysis of all peer reviewed clinical data on ICL with published paper in Clinical Ophthalmology June 2016 10. Received CE Mark approval for EVO wi
Slide 15: Strategic Progress (2015-2017)
™ STRATEGIC PROGRESS Building a Foundation for Consistent Growth (2015 - 2017) 11. Achieved record total revenue and ICL unit sales 12. Met all internal requirements on budget and on time for FDA Remediation and Systemic Change . Notified FDA we are ready for inspection 13. All currently CE Marked a
Slide 16: Appendix - Q2 2017 GAAP Financial Summary
™ Appendix - Q2 2017 GAAP FINANCIAL SUMMARY Income Statement ($ millions, except per share) Q2 2017 Q2 2016 Revenue $ 21.9 $ 21.0 Gross Profit $ 15.5 $ 14.6 Gross Profit Margin 70.5% 69.7% Operating Expenses $ 16.8 $ 16.8 Other Income (Expense) $ 0.5 $ (0.1) Income (Loss) Before Taxes $ (0.8) $ (2.3
Slide 17: Appendix - Q2 2017 Non-GAAP Financial Summary
™ Appendix - Q2 2017 NON - GAAP FINANCIAL SUMMARY Adjusted Net Income ($ millions, except per share) Q2 2017 Q2 2016 GAAP Net Income (Loss) $ (1.0) $ (2.1) Foreign Currency Impact $ (0.4) $ 0.4 Stock - Based Compensation Expense $ 0.9 $ 0.3 Remediation Expense $ 0.0 $ 0.5 Adjusted Net Income (Loss)
Slide 18: 1H 2017 Results Key Takeaways
™ 1H 2017 RESULTS Key Takeaways • Net Sales of $42.3 Million Up 5% from the Prior Year Period • ICL Sales Up 11% and Units Up 15% from the Prior Year Period • IOL Sales Down 11% from the Prior Year Period • Gross Margin Improved to 71.1% of Sales from 68.6% of Sales in the Prior Year Period Forward
Slide 19: Gross Margin Expansion
™ GROSS MARGIN EXPANSION 65.1% 68.4% 70.8% 2014 2015 2016 0 10000 20000 30000 40000 50000 60000 70000 GROSS PROFIT ICL IOL OTHER Column1
Slide 20: Cash Generation Improvement
™ CASH GENERATION IMPROVEMENT 12.4 12.6 12.8 13 13.2 13.4 13.6 13.8 14 14.2 CASH 2014 2015 2016 CASH PROVIDED BY (USED IN) OPERATIONS: 2014: ($8.0 MILLION) 2015: ($2.2 MILLION) 2016: $1.0 MILLION
Slide 21: Investment Considerations
™ INVESTMENT CONSIDERATIONS x Growing “Millions of Eyes” Global Opportunity x Double - Digit ICL Unit Growth x Expanding Gross Margin x Operating Expense Investments Well Managed to Support Base Business and Strategic Priorities x Transformative Strategic Agreements/Alliances x Completed FDA Remedia
Slide 22: August 2017 Evolution in Visual Freedom
INVESTOR PRESENTATION NASDAQ: STAA August 2017 Evolution in Visual Freedom ™