Slide 1: BIOLASE Free Writing Prospectus, October 2019
NASDAQ CM: BIOL October 2019 Waterlase iPlus Waterlase Express Epic X Epic Pro Epic Hygiene Free Writing Prospectus pursuant to Rule 433 Registration Statement No. 333-233629
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation and during discussions with BIOLASE representative’s that refer to BIOLASE’s estimated or anticipated future results or other non-historical facts are forward-looking statements, as are any statements its representatives make concerning BIOL
Slide 3: Offering Summary
Offering Summary 9,000,000 shares of common stock Shares traded on Nasdaq CM under “BIOL” Price as of 10/3/2019 close $.95/share Use of Proceeds – working capital, new product development, launch scale-ups and general corporate purposes Major existing shareholders are expected to invest Underwriters
Slide 4: Overview
Overview Leading global provider of dental lasers Complete line of products for both general dentists, specialists and practitioners Sold ~40,000 laser systems into 80 countries Systems ≈ 60% of revenue; consumables, accessories and services ≈ 40% Very large potential market with all-tissue laser pe
Slide 5: There is a Better Way…
There is a Better Way… https://www.youtube.com/watch?v=c-Tquc8RQ1k
Slide 6: A Significant Growth Opportunity
A Significant Growth Opportunity a) Under-diagnosed, Under-treated, Under-managed >60 Million People in U.S. Alone Have Gum Disease and Studies Indicate Increased Health Risk Due to the Connection between Oral Health and their Overall Health b) Peri-implantitis c) Stats on #s going to dentist Over 2
Slide 7: BIOLASE Opportunity
BIOLASE Opportunity Estimated market opportunity in excess of $50 billion Current all-tissue laser market penetration ~7.0% of dental practices in US ~1.4% worldwide Each 1% increase in US market penetration equals ~$60M revenue for the industry Path to success includes: Improved collaboration betwe
Slide 8: Global Dental Laser Market
Global Dental Laser Market Sources: Data Bridge Market Research 2017 Soft Tissue Laser Market by Region All Tissue Laser Market by Region
Slide 9: Lasers Widely Used in Medicine
Lasers Widely Used in Medicine Minimally invasive Less bleeding/trauma Faster healing Enhanced precision More patient-friendly experience Training is the key driver of adoption LASIK
Slide 10: Key Drivers of Adoption
In-Progress Model Markets: Los Angeles & Dallas In-Progress Dental Service Organization Pilot 900+ Office Opportunity In-Progress McGuire Study (1) Waterlase vs. Traditional Periodontal Therapy Waterlase Key Drivers of Adoption * Source: American Refractive Surgery Council LASIK Clinical Support Cor
Slide 11: Why Waterlase – Our Flagship Product is The Ideal Technology
Why Waterlase – Our Flagship Product is The Ideal Technology * Christensen, Gordon J. “First Look: Solea CO2 Hard and Soft Tissue Laser.” CLINICIANS REPORT, Volume 8 Issue 4, April 2015, Pages 1, 3 & 4 ** Data on file. *** Gordon, W. et al. “The Antimicrobial Efficacy of the Er,Cr:YSGG Laser with Ra
Slide 12: Why Waterlase for the Patient?
Less pain Fewer shots Faster recovery Why Waterlase for the Patient? Decreased dental anxiety and fear Same-day, multi-quadrant treatments = fewer appointments
Slide 13: Why Waterlase for the Doctor?
Improve patient care Keep revenue “in-house” New patient referrals Make dentistry fun again! ROI Generate immediate, positive monthly cash flows by performing just one or two CDT-coded procedures per week. Why Waterlase for the Doctor?
Slide 14: Partners and Targets
Influencers Corp. Dent. Specialist Partners Advancing Dentistry Symposium Perio GP Partners and Targets
Slide 15: Model Market – Pilot and Learn
Los Angeles Dallas Model Market – Pilot and Learn Everything that works in Model Markets will be transferred to other parts of U.S. Model Market Generate Demand & Pull Laser sales grew 31% in 2Q19 Influencers (focused on social media) Patient Pull –increase in visits to find a Waterlase dentist Prac
Slide 16: A Full-Spectrum Portfolio of Laser Systems and Procedural Consumables
A Full-Spectrum Portfolio of Laser Systems and Procedural Consumables Most powerful and capable diode dental laser ever Best in class speed, comfort, and precision cutting Leverages IPG Medical technology Smallest, easiest most cost-effective Waterlase Vivid HD tablet user interface Exclusive proced
Slide 17: New Product- Hygiene
New Product- Hygiene Voice of Customer Development Process A new laser, based on a cost-reduced Epic X platform specifically developed for the North American hygiene market Simplified graphic user interface One touch procedures Improved Ergonomics Developed with and for the Hygienist
Slide 18: 2019 Initiatives and Achievements
2019 Initiatives and Achievements Reduced R&D spend in first half of 2019 by 18% from 2017 run rate Gross margin % increased 320bps in first half of 2019 compared to year ago driven by manufacturing cost savings Transform R&D-centric culture to customer-centric, including improving sales focus Devel
Slide 19: Key Management
Key Management Todd Norbe, CEO Joined Board in June 2018 and named CEO in August 2018 Former President of KaVo Kerr, a Danaher subsidiary Previously President and GM of Metrex Medical – Sybron Dental specialties John Beaver, EVP & CFO Joined Biolase in October 2017 Previously CFO and Director of Sil
Slide 20: Financial Results
Financial Results US 62% International 38% Full Year 2018 Highlights (YOY) 3% ▲ in WW laser revenue to $44.5M 7% ▲ in U.S. laser revenue 13% ▲ in WW consumables and other revenue reflecting increased utilization of our lasers 440 basis points ▲ in gross margins 1H 2019* Highlights (YOY) 10% ▼ in U.S
Slide 21: Consolidated Financial Data
Consolidated Financial Data
Slide 22: 2018 Sales Mix
2018 Sales Mix Key markets ex-U.S.: China, Korea, Taiwan, India, Germany 2Q 2019 Highlights 31% Model market laser revenue increase YOY 2% U.S. consumables and other increase YOY By Product Type Consumables 18% Laser Systems 64% Imaging 4% Service 14% By Geography U.S. 62% International 38% U.S. = D
Slide 23: Financial Path to Positive Cash Flow
Financial Path to Positive Cash Flow Commercial go-to-market optimization Improved price discipline Compensation plan alignment Strategic outsourcing Improved overall cost control discipline
Slide 24: BIOLASE Dilution Table and Use of Proceeds
As of August 31, 2019 BIOLASE Dilution Table and Use of Proceeds Outstanding Common Shares Outstanding — 21,914,402 (1) RSUs — 3,976,848 Options Weighted Average Exercise Price $6.43 1,795,340 Warrants (2) Weighted Average Share Price of $6.30 2,083,193 Restricted Stock 500,000 Fully Diluted 30,269,
Slide 25: Investment Summary
Investment Summary Leading global provider of dental lasers Large potential market opportunity with laser penetration only 7% in the U.S. and 1.4% worldwide Lasers are a superior solution for both patients and practitioners Experienced management team that is effectively transitioning Biolase from R
Slide 26: Thank YOU
Thank YOU NASDAQ CM: BIOL For further information, please contact John Beaver, EVP & CFO Biolase, Inc Email: jbeaver@biolase.com Phone: 949-226-8124