Staar Surgical Company · NASDAQ:STAA

Staar Surgical — Investor Presentation (February 2019)

25 slides from Staar Surgical's investor presentation, Feb 28, 2019

  1. Slide 1: STAAR Surgical Company Investor Presentation

    STAAR Surgical Company NASDAQ: STAA Investor Presentation | February 28, 2019

  2. Slide 2: Forward Looking Statements

     All statements in this presentation that are not statements of historical fact are forward-looking Forward statements, including statements about any of the following: any financial projections, including those relating to the plans, strategies, and objectives of management for 2019 or prospects f

  3. Slide 3: Agenda

    Agenda ➢ ICL Overview ➢ Current Market Opportunity ➢ Roadmap to Expanded Opportunity ➢ Strong 2018 Financial Performance ➢ 2019 Outlook is for Continued Strong Growth 3

  4. Slide 4: ICL Patients and Ambassadors

    99.4% of Patients We transform lives by providing visual freedom through Would Elect premium lens-based surgical correction of refractive error. STAAR’s Implantable Collamer Lens ICL Patients (ICL) Again* ICL Ambassadors *Patient Registry Survey Data on File 4

  5. Slide 5: ICL Patient Testimonials

    ICL™ Patient Testimonials “Upgradeable, Replaceable”… I feel like a big part of health is using what I had my first opportunity to put my Visian your body already has. Visian ICL is in line ICL eyes to the test recently in the with that because it’s keeping your eye Brazilian Rainforest, and it coul

  6. Slide 6: ICL Metrics

    ICL Metrics 900K+ 75+ ICLs™ Implanted Globally Countries* 82% 54% ICL Revenue Mix ICL™ Unit Growth 2018 2018 Y/Y *STAAR sells directly in the U.S., Canada, the U.K., Spain, Germany & Japan and through a Hybrid sales model along with distributors in China, South Korea, and India, and through distribu

  7. Slide 7: ICL

    STAAR’s exclusive Collamer® material offers patients a ICL™ unique set of benefits … Biocompatible UV Protection ICL Placement in the Eye Exclusive ICL™ Collamer® Natural Lens Iris Material, the Cornea ICL is Quiet in the Eye No Dry Eye Removable 7

  8. Slide 8: EVO ICL Safety and Effectiveness Outcomes

    EVO ICL™ Stellar Safety and Effectiveness of STAAR’s EVO Lens  2018 Literature Review authored by Dr. Mark Packer is a review of 67 papers from 10 countries* Safety and  Review covers over 6,000 Eyes of data with up to 5 years of Follow-Up Effectiveness Outcomes  Outstanding outcomes for Safety a

  9. Slide 9: The Market Opportunity

    The Market Opportunity Myopia, Presbyopia and Growth 9

  10. Slide 10: 1.8 Billion Eyes

    TAM 1.8 Billion Eyes 180 Million Eyes Estimated Viable Market Global Prevalence 90 Million patients; adjustment variables incl.: 900 Million people • Epidemiological Data • Distribution of Uncorrected Refractive Error by Age The ICL could be the Bilateral vision • Patient Ability to Pay correction p

  11. Slide 11: Existing Market

     4.0 million procedures annually Procedures by Geography Existing represented primarily by LASIK Top 10 Markets ~90% market share but also ICL, Market RLE and PRK China 944,330 US 733,850  U.S. LASIK procedures down 50% from 10 years ago indicating a India 229,262 significant growth opportunity fo

  12. Slide 12: Myopia

    Predicted to Impact 50% of Global Population by 2050… Myopia • More screen use and near vision work An Inability to Focus at Distance • Less time spent outdoors due to Genetic and/or • Positive correlation between Environmental education level and myopia Factors • ICL™ Label Approved Use is -3 to -2

  13. Slide 13: Myopia: Market Position and Growth Opportunity

    Myopia • STAAR is a market leader providing a premium refractive surgical solution and patient experience for High Myopes STAAR’s • Moving down the diopter curve to Mid Myopes represents a Market Position significant opportunity for STAAR; Mid Myopia market & Growth opportunity estimated at ~ 5x Hig

  14. Slide 14: Presbyopia

    Presbyopia Impacts 1.7 Billion People Globally… An Inability to • Current refractive options for Focus on Near presbyopia are Monocular/LASIK/RLE Objects due to an Age Related Loss • ICL could be a more desirable solution of Lens to patients seeking Visual Freedom Accommodation • ICL Not laser/equip

  15. Slide 15: Presbyopia

    Presbyopia • STAAR aims to become a market leading refractive surgical solution and patient experience for the 550 million Early Presbyopes, ages 45 to 55 • Multi-site European clinical trial for EVO ICL with EDOF (Presby Lens) currently underway • Initially targeting CE Mark approval (31+ countries

  16. Slide 16: Growth Opportunities

    • ICL capturing vision correction (refractive surgery) market share drives base Growth business growth Opportunities • ICL Premium and Primary product positioning supported by clinical data and industry-leading patient satisfaction • Myopia • Moving down the diopter curve expands STAAR’s Myopia mark

  17. Slide 17: Targeting 2.22 million eyes annually

    In the Near-to-Medium Term STAAR is targeting 2.22 million eyes annually, which would represent an annual revenue opportunity > $1 Billion * 1,500,000 Significant Visual Freedom 720,000 Market Opportunity for Premium Refractive Procedures with EVO Mid to High Myopia Early Presbyopia * Company intern

  18. Slide 18: Financial Overview

    Financial Overview Recent Results, Outlook and Growth Drivers 18

  19. Slide 19: Growth Results

    Growth Results STAAR’s Revenue Growth Leads Sector 19

  20. Slide 20: Business Results

    +37% Y/Y Growth Revenue Business $ Millions +10% Y/Y Growth 33.9 31.8 31.2 Results +7% Y/Y Growth 27.1 2016 – 2018 24.9 23.5 As Reported 21.0 22.1 21.9 19.3 20.1 20.4 Volume Increases Fuel Gross Margin: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $82.4 $90.6 $124.0 - Nidau Production 2016 2017 2018 - Presby

  21. Slide 21: Business Results: Cash and EPS

    Quarter-End Cash, Cash Equivalents & Restricted Cash* Business $ Millions $102.3 $104.0 Results 2016 – 2018 As Reported 18.6 20.9 21.4 14.1 Potential Investments: Q4 2016 Q4 2017 Q1 Q2 Q3 Q4 2018 -Automation - Precision Manufacturing GAAP and Non-GAAP Earnings Per Share - R&D - IT Systems GAAP Non-G

  22. Slide 22: Business Outlook

    2019  Revenue Growth Percentage Target Increase 20% Full Year 2019 Over 2018 (Includes $2.6M reduction in sales of low margin injector parts) Business  ICL Unit Growth Percentage Target Increase 30% Full Year 2019 Over 2018 Outlook*  GAAP Net Income Expect to increase GAAP Net Income Profitabilit

  23. Slide 23: Growth Drivers

    ➢ Continued market penetration in China where share has increased 5x in less Growth than three years Drivers ➢ U.S. market returns to growth with introduction of the Toric ICL for astigmatism in Q4’18 2019 ➢ EU market upside with potential Presbyopia approval ➢ Continued market share gains in Mid-to

  24. Slide 24: Substantial Growth Opportunity

    We Believe There is Substantial Growth Opportunity… STAAR Millions Revenue Profitability Surgical of Eyes Growth Targets Company “Millions of Eyes” Global Opportunity – 20% Annual Revenue Targeting Growth Goal Achievement of 2018 - 2020 Myopia and Sustained Presbyopia Profitability Margin Product Gl

  25. Slide 25: STAAR Surgical Company

    STAAR Surgical Company NASDAQ: STAA Investor Presentation | February 28, 2019

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