Company: STAA
Filing Date: 2025-10-02
Form Type: DFAN14A
Source: 0001213900-25-095514
Chunk: 33

Company: STAAR SURGICAL CO
Filing Date: 2025-10-02
Form: DFAN14A
Chunk 33
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. ▪ In addition to relying on revised, pessimistic projections, Citi also applied an extremely high discount rate ▪ Citi used a discount rate of 14%, which is approximately 600 bps higher than STAAR’s actual cost of capital 4 — In a falling interest rate environment (and with no need for financing), there is no justification for such an elevated discount rate, in our view ▪ By using this higher discount rate, Citi reduced its DCF range for STAAR by several dollars per share — Conveniently, based on the higher discount rate and the lower management projections, the value of Alcon’s offer fell just above the midpoint of Citi’s DCF valuation range 6 — The Board has refused to share with us or release publicly the materials Citi prepared and the WACC Citi used to analyze Alcon’s prior proposals 9.8% 9.6% 9.2% 8.7% 8.1% 7.7% RXST-US AFX-DE SIBN-US ATRC-US STAA-US TNDM-US Other sources calculate STAAR’s WACC to be much lower 9.0% 8.3% 8.2% 8.1% 14.6% 13.4% S&P Capital IQ¹ Bloomberg¹ Capital Asset Pricing Model² FactSet¹ Range of Discount Rates Used in Fairness Opinion³

Broadwood Partners, L.P. The Fairness Opinion DCF Value Is Artificially Low… 45 3 A more appropriate discount rate, and management’s original projections, would have yielded a significantly higher valuation ran ge 1. Source: STAAR proxy statement on Form DEFM14A, filed with the SEC on September 16, 2025 at 57. 2. Source: FactSet. Data as of August 4, 2025. 3. Source: STAAR proxy statement on Form DEFM14A, filed with the SEC on September 16, 2025 at 61 - 62. See page 43 for DCF analysis a ssumptions. $17.70 $22.00 $25.34 $37.50 $49.66 $56.94 $27.60 $35.83 $41.14 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 Reference Range Used by STAAR's Financial Advisor¹