The Cooper Companies, Inc. · NASDAQ:COO

The Cooper Companies — Cooper Companies — Investor Presentation (January 2006)

43 slides from The Cooper Companies's investor presentation, Jan 9, 2006

  1. Slide 1: Exhibit 99.1

    Exhibit 99.1 NYSE: COO

  2. Slide 2: Forward-Looking Statements

    1/6/2006 2 This presentation contains forward-looking projections of Cooper’s results. Actual results could differ materially from these projections. Additional information concerning factors that could cause material differences can be found in Cooper’s periodic filings with the Securities and Exch

  3. Slide 3: The Company

    1/6/2006 3 Medical devices Vision care Women’s healthcare Market leadership Favorable demographics Consistent long-term performance THE COMPANY

  4. Slide 4: Consistent Performance

    1/6/2006 4 32% 20% Cash Flow Per Share 22% 62% 65% Fiscal 2005 21% 32% 32% 2000-2005 5 Year EPS - Continuing Operations Operating Income Revenue CONSISTENT PERFORMANCE (CAGR Ex NRI)

  5. Slide 5: Investor Questions

    1/6/2006 5 • What are your plans to “stop the bleeding” in your U.S. sphere business? • Does silicone hydrogel pose a threat to your toric business? • Will you meet scheduled new product introduction dates and capacity ramp up? • Will you deliver the synergies you promised? • Is your 2006 revenue fo

  6. Slide 6: Market Background

    Market Background

  7. Slide 7: Market Segments

    1/6/2006 7 none none Silicone $ 10 none Silicone 49% $ 100 $ 30 Silicone none none Silicone 28% $1,180 $ 565 Silicone 29% $1,290 $ 595 Silicone Material (worldwide, millions of $’s) CGR 2008 2005 MARKET SEGMENTS 6% $4,620 $3,940 Hydrogel Materials 17% $ 240 $ 150 Multifocal 2% $320 $ 300 Cosmetic 9%

  8. Slide 8: Geographic Market Segments

    1/6/2006 8 9% $5,910 $4,535 Total Market *Includes Mideast and Africa Source: company reported data and independent market audit Asia/Pacific Europe* Americas (millions of $’s) 14% $2,100 $1,415 5% $1,450 $1,260 8% $2,360 $1,860 CGR 2008 2005 GEOGRAPHIC MARKET SEGMENTS

  9. Slide 9: Stop the Bleeding…

    Stop the Bleeding…

  10. Slide 10: …in the U.S. Sphere Market

    1/6/2006 10 Soft Spot: One product line; one market Response: • Proclear® • PC Hydrogels -- Biomedics® XC • Biofinity® SiH in U.S. 2H06 • Daily disposable capacity …in the U.S. Sphere Market

  11. Slide 11: Toric Threat?

    Toric Threat?

  12. Slide 12: Toric Market Assumptions

    1/6/2006 12 • A more difficult fit than spheres • Financial motivation lower • Trade-up potential within brands • Proclear® toric experience • CVI 2006 revenue growth worldwide = market growth ~ 12%; US lower Toric Market Assumptions

  13. Slide 13: New Product Schedule 2006-2007

    New Product Schedule 2006-2007

  14. Slide 14: New Product Schedule 2006

    1/6/2006 14 First single-use toric in Japan with wide range of parameters Japan Single-use toric Allows more patients to wear the Proclear toric lens United States then worldwide Second base curve of Proclear toric Disposable 2 week product United States Biomedics Multifocal EP (Emerging Presbyope)

  15. Slide 15: New Product Schedule 2007-2008

    1/6/2006 15 Premium single-use lens enhances wearer comfort Europe Single-use sphere with Proclear technology 1H07 Third generation silicone hydrogel using PC technology United States Silicone Hydrogel plus PC sphere First premium single-use multifocal United States Single-use multifocal with Procle

  16. Slide 16: Capacity Ramp Up

    Capacity Ramp Up

  17. Slide 17: Capacity Increments

    1/6/2006 17 • Single use +60% (FY06) • Total molding capacity +40% (FY06) • SH about 10M lenses FY06; increase 5X in ‘07 Capacity Increments

  18. Slide 18: Synergies

    Synergies

  19. Slide 19: Synergies

    1/6/2006 19 • $50 million by the end of 2007 • $25M so far -- $25M to go • Remaining savings from: – Distribution facility consolidation – Conversion to Gen II manufacturing

  20. Slide 20: Is the 2006 Forecast Realistic?

    Is the 2006 Forecast Realistic?

  21. Slide 21: Assumptions

    1/6/2006 21 • Forecast base* = $720M • New Products = $44M • Growth ex new products = 6% • Market growth = 8% * adjusted for $30M currency and $50M million “stub” period Assumptions

  22. Slide 22: CVI 2006 Revenue Estimate

    1/6/2006 22 % chg $ --- 2005 Proforma $ 8 Silicone (worldwide, millions of $’s) 2006 CVI 2006 REVENUE ESTIMATE +12 - +14 flat +29 +12 +62 +2 $ 720 $ 15 $ 31 $ 241 $ 74 $ 359 $810-$820 Total CVI $ 40 Multifocal $ 15 Cosmetic Torics Single Use Spheres Spheres (ex single use) $ 270 $ $ 365

  23. Slide 23: Why CooperSurgical?

    Why CooperSurgical?

  24. Slide 24: CooperSurgical Strategy

    1/6/2006 24 • Baby boomers drive the market • Consolidate a fragmented market In-office market Surgical market Fertility • Disposable/reusable components • Operating margins mid 20’s • Low capital spend COOPERSURGICAL STRATEGY

  25. Slide 25: CSI Objectives

    1/6/2006 25 $100M CY2004 – $200M CY 2008 25% operating margin 2008 Expand in hospital segment 20% ROI M&A hurdle Accelerate organic growth Expand geographically CSI OBJECTIVES

  26. Slide 26: CooperSurgical

    1/6/2006 26 • Continue to build value • Assess strategic alternatives as NOL’s expire COOPERSURGICAL

  27. Slide 27: Financial Highlights

    1/6/2006 27 NYSE:COO Financial Highlights

  28. Slide 28: Consistent Performance

    1/6/2006 28 32% 21% Cash Flow Per Share* 22% 62% 65% Fiscal 2005 26% 32% 32% 2000-2005 5-Year * Excludes nonrecurring acquisition and restructuring costs EPS - Continuing Operations* Operating Income* Revenue CONSISTENT PERFORMANCE (CAGR Ex NRI)

  29. Slide 29: Assumptions

    1/6/2006 29 15% 15% 12.5% ETR 49M 48.5M 46M Shares Outstanding 25.5% 24% 23.4% Operating Income 40% 41% 41% Operating Expense 65.5% 65% 64.4% Gross Profit 2007 2006 2005 (Effective 12-28-05) ASSUMPTIONS

  30. Slide 30: Guidance

    1/6/2006 30 $1045-$1060 $933-$946 COO • Excludes nonrecurring items and accounting change (Effective 12-28-05) $4.04-$4.14 $3.34-$3.44 EPS* $135-$140 $123-$126 CSI $910-$920 $810-$820 CVI 2007 2006 GUIDANCE (Revenue $’s in Millions)

  31. Slide 31: Capital Structure 10-31-05

    1/6/2006 31 Total Debt $710 Stockholders’ Equity $1272 Total Capitalization $1982 Total Debt /Capitalization 36% CAPITAL STRUCTURE 10-31-05 ($’s in Millions)

  32. Slide 32: COO Consolidated Revenue

    1/6/2006 32 $176 $244 $330 $389 $698 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2001 2002 2003 2004 2005 ($ in millions) $235 $315 CVI CSI $412 $490 807 COO CONSOLIDATED REVENUE $59 $71 $82 $101 $109

  33. Slide 33: Consolidated Operating Income

    1/6/2006 33 $54.8 $67.0 $95.2 $116.80 $189.3 $0 $50 $100 $150 $200 2001 2002 2003 2004 2005 0% 5% 10% 15% 20% 25% ($ in millions) Operating Income Operating Margin CONSOLIDATED OPERATING INCOME (Ex NRI)

  34. Slide 34: CVI Consolidated Operating Income

    1/6/2006 34 $51.4 $60.4 $88.80 $186.1 $106.6 $0 $50 $100 $150 $200 2001 2002 2003 2004 2005 0% 10% 20% 30% ($ in millions) Operating Income Operating Margin CVI CONSOLIDATED OPERATING INCOME (Ex NRI)

  35. Slide 35: CSI Consolidated Operating Income

    1/6/2006 35 $10.1 $14.1 $18.2 $20.9 $20.0 $0 $5 $10 $15 $20 $25 2001 2002 2003 2004 2005 0% 5% 10% 15% 20% 25% ($ in millions) Operating Income Operating Margin CSI CONSOLIDATED OPERATING INCOME (Ex NRI)

  36. Slide 36: EPS From Continuing Operations

    1/6/2006 36 $2.59 $2.09 $1.57 $3.28 $1.22 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2001 2002 2003 2004 2005 Pre stock option expensing and revised OCLR amortization of intangibles EPS FROM CONTINUING OPERATIONS (Ex NRI)

  37. Slide 37: Cash Flow Per Share

    1/6/2006 37 $2.45 $3.10 $3.50 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2001 2002 2003 2004 2005 Pretax income from continuing operations plus depreciation and amortization $4.62 $2.07 CASH FLOW PER SHARE

  38. Slide 38: Liquidity

    1/6/2006 38 Cash Flow from Operations NOL’s Free Cash Flow LIQUIDITY

  39. Slide 39: Taxes

    1/6/2006 39 Net Operating Loss Carryforwards $146 million Global Tax Arrangement Effective Tax Rates TAXES

  40. Slide 40: Cash Flow From Operating Activities

    1/6/2006 40 $26 $56 $80 $101 $186 $0 $50 $100 $150 $200 2001 2002 2003 2004 2005 ($ in millions) CASH FLOW FROM OPERATING ACTIVITIES

  41. Slide 41: Capital Structure

    1/6/2006 41 October 31, 2003 2004 2005 Total Debt $186 $166 $710 Stockholders’ Equity $422 $544 $1272 Total Capitalization $608 $710 $1982 Total Debt/Capitalization 31% 23% 36% ($ in millions) CAPITAL STRUCTURE

  42. Slide 42: Debt % of Total Capitalization

    1/6/2006 42 21% 34% 31% 23% 36% 0% 10% 20% 30% 40% 2001 2002 2003 2004 2005 ($ in millions) DEBT % OF TOTAL CAPITALIZATION

  43. Slide 43: Goper

    Goper Goper

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