Staar Surgical Company · NASDAQ:STAA
Staar Surgical — Investor Presentation (November 2018)
22 slides from Staar Surgical's investor presentation, November 2018
Slide 1: STAAR Surgical Company
STAAR Surgical Company NASDAQ: STAA Investor Presentation | November 2018
Slide 2: Forward Looking Statements
All statements in this presentation that are not statements of historical fact are forward-looking statements, Forward including statements about any of the following: any financial projections, including those relating to the plans, strategies, and objectives of management for future operations o
Slide 3: Business Focus
Business Focus We transform lives by providing visual freedom through premium lens-based A leading surgical correction of refractive error. developer, manufacturer and marketer of premium implantable lenses for refractive vision correction. 3
Slide 4: Products Overview
Products Overview 83% EVO Visian ICL™ Visian ICL™ Implantable Collamer® Lens of Q3 2018 Revenue* ICL delivers Visual Freedom to patients needing Myopic (distance vision) correction Patient pay Other Products Crystalline Lens Replacement Preloaded Injectors & Parts IOL replaces the patient’s na
Slide 5: Exclusive Collamer Material
STAAR’s exclusive Collamer® material offers Exclusive patients a unique set of benefits … Collamer® Biocompatible UV Protection Material ICL Placement in the Eye ICL™ Natural Lens Iris Cornea Quiet in the Eye No Dry Eye Removable 5
Slide 6: Myopia
Myopia Potentially 5 Billion People with Myopia by 2050…* An Inability to • Predicted 50% of Global Population Focus at Distance due to Genetic • More screen use; near vision work; and less time spent outdoors and/or Environmental • Positive correlation between Factors education level and myopia • I
Slide 7: Myopia: Moving Down Diopter Curve Increases TAM
Myopia Moving Down Diopter Curve Increases TAM… Mid Myopia High Myopia STAAR’s -10 Market Position & Opportunity -6 -20 • STAAR is a market leader providing a premium refractive surgical solution and patient experience for High Myopes (-10 to -20 diopters) • Moving down the diopter curve (-6 to -10
Slide 8: Presbyopia
Impacts 1.7 Billion People Globally… Presbyopia • Current refractive options for presbyopia are Monocular/LASIK/RLE; ICL could be a more An Inability to desirable solution to patients seeking Visual Focus on Near Freedom Objects due to an • ICL Not laser/equipment dependent Age Related Loss • ICL Bi
Slide 9: TAM
Targeting 2.22 million ICLs annually within two large markets…* TAM Mid to High Diopter Myopia Early Presbyopia 350 million people globally 550 million people globally 35 Million 55 Million Viable Patient Viable Patient Population Population = = 70 Million 110 Million ICLs ICLs Viable Patient Popula
Slide 10: Significant Visual Freedom Market
STAAR Global Market Opportunity Est. ~ Current Products 2.22 Million Eyes Annually* Visian ICL (Global) 1,500,000 EVO (x U.S.) Central Port Central Port EVO+ (x U.S.) Larger Optic Significant Product Pipeline Visual Freedom 720,000 EVO with EDOF Presbyopia Market Toric EVO with EDOF Astigmatism Oppo
Slide 11: ICL Patient Experience
ICL™ Patient Experience 99.4% of Patients Would NEED OUTREACH & EDUCATION IMPLANT Have the ICL’s Step 1 Step 2 Implanted Patient need and awareness Surgery day Outreach, education and eye surgeon visit Local anesthetic, minimally invasive Again* Decision to use ICL Quick 20-30 minute procedure *Pati
Slide 12: 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
Slide 13: Select Metrics
Select 900K+ 75+ Metrics ICLs™ Implanted Globally Countries* 75.1% 56% Gross Margin ICL™ Unit Growth Q3 2018 Q3 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
Slide 14: Business Momentum
Sales Momentum Has Further Accelerated Business in Year 1 of 2018-2020 Plan Momentum 41% 35% Net Sales GrowthY/Y 10% 7% Fiscal '16 Fiscal '17 Q3 2018 YTD 2018* *Nine-Months Ended September 28, 2018; Q3 Fiscal 2018 results reported on October 31, 2018 14
Slide 15: Business Results
Revenue 33.9 Business $ Millions 31.8 27.1 Results 23.5 24.9 2016 – 2018 YTD 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 - Nidau Production $82.4 $90.6 YTD $92.8 - Presbyopia Clinicals 2016 2017 2018 - Presbyopia Production -Commercial Buildout
Slide 16: Business Results
Quarter-End Cash, Cash Equivalents & Restricted Cash* Business $ Millions $102.3 Results 2016 – 2018 YTD 14.1 18.6 20.9 21.4 Potential Investments: Q4 2016 Q4 2017 Q1 Q2 Q3 -Automation 2018 - Precision Manufacturing - R&D GAAP and Non-GAAP Earnings Per Share** - IT Systems GAAP Non-GAAP -Working Cap
Slide 17: 3Q 2018 Highlights
3Q 2018 Revenue Growth of 35 % Y/Y ICL Sales up 46%; ICL Units Up 56% including: China up 100%, Japan Highlights up 95%, India up 27% , Germany up 20%. Op Ex Increased 41 % Y/Y (reported) and 32% Y/Y adjusting for ESCRS trade show calendar shift Reported October 31, 2018 Generated quarterly
Slide 18: Financial Outlook 2018
Revenue Growth Percentage Target Increase Financial Should Exceed 30% Full Year 2018 Over 2017 Outlook (Prior: May exceed 25%) 2018* GAAP Net Income Fully expect to maintain GAAP Net Income profitability for the year (Prior: Achieve at least Breakeven GAAP Net Reported Income) October 31, 2018 •
Slide 19: We Believe There is Significant Growth Opportunity
We Believe There is Significant Growth Opportunity… STAAR Millions Revenue Profitability Surgical of Eyes Growth Targets Company “Millions of Eyes” Global Opportunity – 20%+ Annual Revenue Growth Targeting Achievement of 2018 - 2020 Myopia and Goal Sustained Presbyopia Profitability Margin Product G
Slide 20: STAAR Surgical Company
STAAR Surgical Company NASDAQ: STAA Investor Presentation | November 2018
Slide 21: Reconciliation of Non-GAAP Measure
This presentation includes supplemental non-GAAP financial information, which STAAR Reconciliation believes investors will find helpful in understanding its operating performance. “Adjusted Net Income (Loss)” and “Adjusted Net Income (Loss) Per Share” exclude the following items that are of Non-GAAP
Slide 22: Reconciliation of Non-GAAP Measure (cont.)
[Insert chart] Year Ended Year Ended Year Ended 9-Months Ended September 29, 9-Months Ended September 28, Reconciliation (in 000’s) Unaudited January 1, 2016 December 30, 2016 December 29, 2017 2017 2018 of Non-GAAP Net income (loss) - (as reported) Less: $ (6,533) $ (12,129) $ (2,139) $ (2,001) $ 3
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