EX-99.1 2 dex991.htm INVESTOR PRESENTATION DATED JANUARY 9, 2006 Investor presentation dated January 9, 2006
NYSE: COO
Exhibit
99.1

1/6/2006
2
FORWARD-LOOKING STATEMENTS
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 Exchange
Commission.  They are available publicly and
on request from Cooper’s investor relations
department.

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

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

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5
INVESTOR QUESTIONS
•
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 forecast realistic?
•
Why are you investing in CooperSurgical?

Market Background

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7
MARKET SEGMENTS
none
none
Silicone
$   10
none
Silicone
49%
$ 100
$    30
Silicone
none
none
Silicone
28%
$1,180
$   565
Silicone
29%
$1,290
$   595
Silicone Material
6%
$4,620
$3,940
Hydrogel Materials
17%
$ 240
$  150
Multifocal
2%
$320
$  300
Cosmetic
9%
$5,910
$4,535
Total Market
Torics
Daily Disposable Spheres
Spheres
(worldwide, millions of $’s)
11%
$  900
$  660
14%
$1,850
$1,225
6%
$2,600
$2,200
CGR
2008
2005

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8
GEOGRAPHIC MARKET SEGMENTS
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

Stop the Bleeding…

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

Toric Threat?

1/6/2006
12
Toric Market Assumptions
•
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

New Product Schedule
2006-2007

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14
Expands parameters of Proclear
toric
United States
Proclear
disposable
toric
XR
Premium single-use lens
enhances wearer comfort
United States
Single-use sphere with
Proclear
technology
First disposable product in its class
United States
Proclear
disposable
toric
multifocal
Second generation monthly product
United States
Silicone Hydrogel sphere
2H06
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)
Favorable clinical profile
vs. competitive silicone hydrogels
United States
Biomedics
XC:
2
week
disposable sphere with PC technology
Improved lens design and packaging
Worldwide
Biomedics
mid-water
aspheric
single-use
1H06
Comments
Market
Product Description
Date

1/6/2006
15
Premium single-use lens
enhances wearer comfort
Japan
Single-use sphere with
Proclear
technology
2H08
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
Proclear
technology
Third generation silicone
hydrogel using PC technology
United States
Europe
Silicone Hydrogel Toric
Comments
Market
Product Description
Date

Capacity Ramp Up

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

Synergies

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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

Is the 2006 Forecast
Realistic?

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

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22
CVI 2006 REVENUE ESTIMATE
+12 -
+14
flat
+29
+12
+62
+2
% chg
$ 720
$   15
$   31
$ 241
$   74          
$     ---
$ 359
2005
Proforma
$        8
Silicone
$810-$820
Total CVI
$   40
Multifocal
$   15
Cosmetic
Torics
Single Use Spheres
Spheres (ex single use)
(worldwide, millions of $’s)
$ 270
$
120
$ 365
2006

Why CooperSurgical?

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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

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

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26
COOPERSURGICAL
•
Continue to build value
•
Assess strategic alternatives as
NOL’s expire

1/6/2006
27
NYSE:COO
Financial Highlights

1/6/2006
28
CONSISTENT PERFORMANCE
(CAGR Ex NRI)
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

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29
ASSUMPTIONS
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)

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30
GUIDANCE
(Revenue $’s in Millions)
$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

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)

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

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33
CONSOLIDATED OPERATING INCOME
$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
(Ex NRI)

1/6/2006
34
CVI CONSOLIDATED OPERATING INCOME
$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
(Ex NRI)

1/6/2006
35
CSI CONSOLIDATED OPERATING INCOME
$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
(Ex NRI)

1/6/2006
36
EPS FROM CONTINUING OPERATIONS
$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
(Ex NRI)

1/6/2006
37
CASH FLOW PER SHARE
$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

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38
LIQUIDITY
Cash Flow from Operations
NOL’s
Free Cash Flow

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39
TAXES
Net Operating Loss
Carryforwards $146 million
Global Tax Arrangement
Effective Tax Rates

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

1/6/2006
41
CAPITAL STRUCTURE
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)

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

NYSE: COO