Company: STAA
Filing Date: 2025-10-07
Form Type: PX14A6G
Source: 0001193125-25-232531
Chunk: 5

Company: STAAR SURGICAL CO
Filing Date: 2025-10-07
Form: PX14A6G
Chunk 5
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 Despite being the most conflicted executive in this situation, in STAAR’s second of two press releases on October 6, STAAR featured Mr. Farrell’s strongest
endorsement yet in support of the sale to Alcon.

STAAR is Well-Positioned to Thrive Following the Rejection of the Merger Proposal at the Special Meeting

The Company should maximize the value of its technology rather than committing to a hasty sale while scapegoating transitory events such as
Chinese market conditions and the recent ICL inventory correction. It must commit to unlocking ICL’s full potential for the benefit of shareholders, not to mention the wellbeing of patients and the industry at large, instead of opting for a
rushed exit that shortchanges the Company’s value. If STAAR were to remain a standalone company, we are confident management would capitalize on the attractive opportunities that are in front of the Company.

The Company has multiple avenues to unlock shareholder value, beginning with operational improvements. Additional cost reductions from easy-to-cut expenses could bring the Company’s 2026E EBITDA run rate to up to $200 million, based on the Company’s projection of $100 million in EBITDA
forecasts. This is particularly compelling given that 70% of revenue flows through a distribution model in which most costs are borne by distributors rather than the Company. Much of the recent operating expense expansion stemmed from an initiative
to penetrate the U.S. market which should be severely rationalized and is not in any event tied to the Company’s core revenue drivers.

Additional
EBITDA upside of $40-50 million could come from margin recovery as the Company captures leaked or redundant economics in the distribution channel in China. We understand that at least one director, with
China expertise, has been working on this initiative. Earlier this year, our conversation with this director suggested that these issues are expected to be resolved within months. Furthermore, the Company should seriously evaluate vertical
integration of its business

within China, a strategy that has been previously recommended to STAAR by another shareholder, Anatole Investment Management. Its detailed reports are published and available for download at https://www.anatole-inv.com/research/. These enhancements would not only strengthen fundamentals but would also raise the floor for any future acquisition bids. We see limited potential downside to taking these
actions as the Company would have a multiple of 4.7x pro-forma EV/EBITDA. This is based on Broadwood Partners’ enterprise value calculation of $1.131 billion