1 / 35

Q1 2004

Q1 2004. Forward Looking Statement Disclosure.

xaria
Download Presentation

Q1 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Q1 2004

  2. Forward Looking Statement Disclosure • This presentation includes forward-looking information, including statements related to future market trends effecting the contact lens industry, the supply of and demand for eye care practitioners, possible strategies and actions by the Company and its competitors and the Company’s manufacturing costs. • Actual results could differ materially from those discussed in this presentations. • Detailed information concerning factors that could cause actual results to differ from those discussed in this presentation is available in the Company’s filings with the SEC, including the sections entitled “Risk Factors.” • The Company does not undertake to revise or update any forward-looking statements to reflect future events or circumstances.

  3. Ocular Sciences is... • A leader in the $3.6 billion soft contact lens market • The only major manufacturer to focus solely on the eye care practitioner • Reducing product cost through innovative manufacturing • Developing innovative new products • Generating double-digit international sales growth • Executing an earnings growth strategy

  4. 2003 Worldwide Soft Contact Lens Market Projected Growth Rate 2003 - 2007 2003 Total Revenue: $3.6 billion Source: 2003 OSI Long Range Plan

  5. 2003 Worldwide Disposable Soft Contact Lens Market % of Sales in U.S. dollars by product category Other 1-Day Color Toric Weekly/Bi Source: 2003 OSI Long Range Plan

  6. Growth Rate: Disposable Toric 2003 – 2007 Worldwide annual sales in millions CAGR = 17% Source: 2003 OSI Long Range Plan

  7. Growth Rate: Daily Disposable 2003 – 2007 Worldwide annual sales in millions CAGR = 10% Source: 2003 OSI Long Range Plan

  8. Ocular’s Differentiating Qualities • Comfort • Handling • Patient preference • Revolutionary Toric design • Natural lens coloring

  9. Superior Products: Comfort • Patented Low-Edge Apex Design • Minimal Lens-lid Interaction Ocular Sciences: Low Edge Apex Other Manufacturers: High Edge Apex

  10. Superior Products: Handling • Dry Cast Molding • Enhanced Shape Retention • Visual Acuity Biomedics 55 UV

  11. 86% Patient Preference • Acuity • Comfort • Handling • Overall Performance Results:86% of these patients preferred Ocular’s lens over their current lens. * Independent clinical study evaluated preferences among 289 patients.

  12. Revolutionary Biomedics® Toric Design Lens Surface Comparison Sharp Surface Smooth Surface Competitive Brand Biomedics ® Toric

  13. Revolutionary Biomedics® Toric Design Benefits: • Increased stability • Improved visual acuity • Consistent performance • Greater comfort • Ease of fitting • Less chair time

  14. Toric Market Share Source: CLI

  15. Unique, Natural Biomedics® Colors • Clinically proven Biomedics 55 design • No refit required for existing Biomedics 55 wearers • Proprietary ink technology/natural look • Revising color offering • Exclusive Cover Girl® marketing agreement

  16. Innovative Marketing Strategy • Direct to professional only distribution • Customized product and branding by channel • Competitive pricing • Blue Chip customer base • High patient retention • International expansion

  17. Customized Branding by Channel Dispenser Brand • Channel Biomedics®55/ Hydrogenics™ 60 Versaflex® Polysoft® Ultraflex® Independent Practitioner Retail Optical Mass Merchandiser Dr. Smith

  18. Customized Branding • Benefits: • Assures channel brand exclusivity • Reduces possibility of price shopping • Patients receive prescription that is brand specific • Practitioners retain greater percentage of refill orders, increasing recurring revenue stream

  19. High Patient Retention • Percent of patients returning to original prescribing practitioner

  20. Blue Chip Customer Base

  21. International Market Opportunities Europe Low penetration rate Launch of Toric and Color lenses Private label expansion Dailies

  22. International Market Opportunities Japan Second largest contact lens market Acquired direct market presence Strong competitive position in daily regimen segment New manufacturing technology enhances competitive position Strong product pipeline

  23. Executing an Earnings Growth Strategy • New product development • International opportunities • Drive domestic market share • Lower manufacturing costs

  24. New Product Development • Toric • Enhanced spherical offering • Silicone hydrogel • Multi-focal

  25. New Product Timeline 9/93 6/95 6/99 6/01 8/02 Q2 04 Q1 05 Q3 05 38% Water content lens launched Intro superior bi-weekly disposable sphere Launch daily wear lenses in Japan Launch superior disposable toric lens in U.S. Launch superior disposable toric lens in Europe Global launch improved sphere lens Launch silicone hydrogel lens in Europe / Launch multifocal lens in U.S. / Disposable toric lens approved in Japan Launch silicone hydrogel in U.S. Target: Over 25% of sales represented by products introduced in the past 5 years

  26. International Growth Annual sales in US dollars

  27. International 34% International 57% United States 66% United States 43% Geographical Sales 2000 2003

  28. Drive Domestic Market Share • New product offerings • Direct support for the ECP • Focused sales organization

  29. Lower Manufacturing Costs • Gen II technology delivers: • 20% of the labor • one-third less the facility space • 40% less production cost

  30. Lower Manufacturing Costs Gen II technology timetable: • All daily disposables on Gen II by end of 2003 • 25% of weekly disposables on Gen II by end of 2003 • 80% of high volume production levels by end of 2004 • $20MM in product cost savings in 2004 • $40MM in annual product cost reductions by 2005

  31. Lower Manufacturing Costs Annual unit production cost % decrease % decrease

  32. Q4 2003 Financial Highlights • Revenue Up 19% • - International up 31% • - Toric up 75%+ • Gross Margin 55.6% • Operating Expense % Down to 39.8% • 2003 Full Year Free • Cash Flow $34 million* *Prior to Restructuring and Other Related Costs

  33. Balance Sheet Highlights(in millions) • As of Dec. 31, 2003 • Cash $ 47 • Debt $ 16 • Equity $306 • Working Capital $126

  34. 2004 Operating Model • Revenue: $335 - $342 million • Gross Margins: 55.5% - 56.5% • Operating Expense: 39% - 41%* • Net Income: $43 - $44 million* • Earnings Per Share: $1.72 – 1.75* • *Prior to Restructuring and Other Related Costs

  35. Investment Considerations • a leader in the $3 billion soft contact lens market. • the only major manufacturer to focus solely on the eye care practitioner. • reducing product cost through innovative manufacturing. • generating double-digit international sales growth • executing an earnings growth strategy

More Related