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

Company: STAAR SURGICAL CO
Filing Date: 2025-10-02
Form: DFAN14A
Chunk 10
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 and inventory challenges have negatively impacted STAAR’s revenue and profitability ▪ The Company’s revenue and margins are currently near trough levels, but are improving, and management expects they will not only to recover, but reach all - time highs in 2026 As a Result of These Challenges, STAAR’s Financial Results Have Temporarily Deteriorated 1 2 3 4 A

Broadwood Partners, L.P. Consumer Confidence Has Deteriorated, Especially in China 15 Various economic factors – including higher interest rates, elevated inflation and tariffs – have weighed on consumer confidence 1. Source: Organisation for Economic Co - operation and Development. Data runs from January 2020 to July 2025. 2. Source: Lucia Mutikani , “Trump policy concerns send US consumer confidence plummeting to eight - month low,” Reuters , February 25, 2025. 3. Source: Lucia Mutikani , “US consumer spending falls; tariff - related boost to inflation awaited,” Reuters, June 27, 2025. 4. Source: Dean Barber, “Major Consumer Companies Warn of Spending Decline,” The Rising Tide , April 27, 2025. 5. Source: Daniel Zipser, “Mid - year update: Five surprises from China’s consumer market,” McKinsey & Co. , August 13, 2025. ▪ Macroeconomic factors including higher interest rates, elevated inflation, tariffs and pessimism about the general economic outlook, have contributed to a decline in consumer confidence 2 and spending 3 — Global consumer companies like PepsiCo, Kimberly - Clark and Procter & Gamble have been cutting their financial forecasts, bracing for lower sales and signaling uncertainty about the near future 4 ▪ China – a key market for STAAR, typically representing more than half of the Company’s net sales – has been particularly impacted — Concerns regarding unemployment, economic stability and the ongoing property value downturn have weighed on consumers 5 — Despite the return of growth in some sectors, consumer confidence in China remains near historic lows and has only gradually been recovering 5 — Consumer caution is reflected in the personal savings rate, which has remained elevated above 30% since 2020; consumers are opting to allocate money towards savings and delaying or avoiding discretionary purchases 5 90 95 100 105 110 2020 2021 2022 2023 2024 2025 China U.S. E.U. 1 Consumer Confidence Index (