UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 17, 2008
THE COOPER COMPANIES, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-8597 | 94-2657368 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
6140 Stoneridge Mall Road, Suite 590, Pleasanton, California 94588
(Address of principal executive offices)
(925) 460-3600
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01. | Regulation FD Disclosure. |
On September 18, 2008, The Cooper Companies, Inc. will host an Analyst Meeting. A copy of that presentation is furnished as Exhibit 99.1 to this Current Report and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended.
Internet addresses in the release are for information purposes only and are not intended to be hyperlinks to other The Cooper Companies, Inc. information.
| ITEM 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. |
Description | |
| 99.1 | Analyst presentation dated September 18, 2008. | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE COOPER COMPANIES, INC. | ||
| By | /s/ Rodney E. Folden | |
| Rodney E. Folden | ||
| Corporate Controller (Principal Accounting Officer) | ||
Dated: September 17, 2008
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Analyst presentation dated September 18, 2008. | |
 Analyst Meeting 2008 September 18, 2008 Exhibit 99.1 |
 Opening Remarks and Management Introductions Al White Vice President, Investor Relations and Treasurer |
 3 The Cooper Companies Analyst Meeting 2008 Agenda 7:30 am Registration 8:30 am Welcome and Introductions Al White 8:35 am Strategic Overview Bob Weiss 9:15 am CVI Business Unit John Weber CVI Commercial Update Jeff McLean CVI Manufacturing Fernando Torre CVI R&D Arthur Back 10:15 am Break 10:30 am CSI Business Unit Nick Pichotta 11:00 am Finance Review and Outlook Gene Midlock 11:15 am Summary Bob Weiss Question and Answer Session |
 4 The Cooper Companies Analyst Meeting 2008 Forward Looking Statements This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including projections of Cooper’s results. To identify these statements look for words like "targets,” "expects," “seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties. Actual results could differ materially from the projections made in this presentation. 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. |
 Strategic Overview Bob Weiss President & Chief Executive Officer |
 6 The Cooper Companies Analyst Meeting 2008 One Year in the Saddle Year 1 Accomplishments: Concluded integration and restructuring Addressed new product capacity constraints Launched key new product -- Avaira Strengthened management team Completed capital expansion program |
 7 The Cooper Companies Analyst Meeting 2008 3-5 Year Plan Driving Revenue Recession resistant Market share gains • Geographic expansion • Rollout of best in class products in each modality • PC 1 Day – Single use 34% WW market • Avaira – 2 week 39% WW market • Biofinity – Monthly and beyond 27% of WW market • Materials • Third generation SiH 30% WW market • ProClear family – Best-in-class conventional hydrogels 70% WW market • New Product Rollouts • Biofinity (SiH) monthly toric Calendar 1Q09 • PC 1 Day – Japan Fiscal 1H09 • Avaira (SiH) 2 week toric Calendar 4Q09 • SiH Multifocal Fiscal 2010 3-5 Year Target – 1.5x Market |
 8 The Cooper Companies Analyst Meeting 2008 3-5 Year Plan Driving Gross Margin Leverage manufacturing platform • Conversion onto GenII completed • Leverage Biofinity production lines into Specialty Lenses and Avaira • Improve GenII footprint and efficiency Leverage material platform • SiH materials to Specialty Lenses • Significant cost reductions in using PC material • Significant cost reductions in using SiH materials 3-5 Year Target – Low 60s |
 9 The Cooper Companies Analyst Meeting 2008 3-5 Year Plan Leveraging Operating Expense SG&A • Sales & Marketing growing with revenues to support product launches • Distribution consolidation completed • General & Administrative leverage R&D • Grow with revenues 3-5 Year Target - • Grow OpEx at 70-90% of Revenue growth rate • Leverage OpEx from mid-40’s to low 40’s as a % of Revenue |
 10 The Cooper Companies Analyst Meeting 2008 3-5 Year Plan Driving Earnings Growth Maintain low effective tax rate Reduce interest expense 3-5 Year Target – Exceed 15% EPS growth |
 11 The Cooper Companies Analyst Meeting 2008 3-5 Year Plan Generating Solid Cash Flow Lower CapEx requirements • FY2009: $125-140M • FY2010 onward: sub-$125M Improve inventory months-on-hand (MOH) • Distribution consolidation completed • New systems (Logility) 3-5 Year Target - • $1B+ of Operating Cash Flow ’09-12 • Over 50% will be Free Cash Flow |
 12 The Cooper Companies Analyst Meeting 2008 3-5 Year Plan Deleveraging Balance Sheet Lower MoH Lower CapEx Strong FCF 3-5 Year Target – • Debt/Cap under 30% • FD/EBITDA under 3x |
 13 The Cooper Companies Analyst Meeting 2008 5 Key Takeaways for Today Depth of management team Well positioned to leverage growth Market leading product lines Integration completed Driving efficiencies |
 CooperVision Business Unit John Weber President |
 15 The Cooper Companies Analyst Meeting 2008 CooperVision – Overview Global manufacturer of contact lenses Approx. 7,000 employees in more than 54 countries YTD 2008 growth has outpaced the market Since 2005: Reduced and strategically focused distribution centers Expanded product portfolio and introduced two world class silicone spheres Leveraged manufacturing technology around the world Increased R&D investment to 1.7x 2005 levels Product mix: 42% Specialty, 39% Spherical, 19% Single Use Geographic mix: 44% Americas, 39% Europe, 17% Asia-Pacific
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 CooperVision’s Global Segments EMEA Asia-Pac 16 Americas % of CVI Sales:
44% Market
Position: #2 Led
By: J. McLean Strategic Focus: Share
Growth % of CVI
Sales: 17% Market Position: #4
Led
By: Dr. J.C. Aragon Strategic Focus:
Investment % of CVI
Sales: 39% Market Position: #2
Led
By: A. Sedgwick Strategic Focus: Expansion
Growth |
 17 The Cooper Companies Analyst Meeting 2008 CooperVision’s Goals CooperVision targets growing revenue 1.5X the contact lens market and leveraging our expenses to drive bottom line profitability and free cash flow Targeted Strategy Components: Best in class products competing in all major modalities and materials Flexible market strategy offering a clear alternative to the market leader Expanding presence in the Asia Pacific region Operational excellence supporting flexibility in an efficient manner
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 18 The Cooper Companies Analyst Meeting 2008 The CooperVision Management Team CooperVision has assembled a strong management team, capable of delivering improved bottom line financial results through revenue growth and leveraging expenses The team has the skills, experience, and expertise in all key functions required to successfully lead and manage a contact lens company Three key members of the executive management team presenting today |
 19 The Cooper Companies Analyst Meeting 2008 Jeff McLean Executive Vice-President, Commercial Strategy Promoted in April 2008 from CooperVision’s President of the Americas Responsibilities include: Developing and coordinating commercial strategy Company positioning Product positioning Interacting with R&D to determine and monitor product development strategy Background includes several successful management sales & marketing positions over 27 years within the contact lens industry |
 20 The Cooper Companies Analyst Meeting 2008 Fernando Torre Vice-President, Manufacturing Responsibilities include Improving and maintaining high standard of lens quality Manufacturing scale up of silicone hydrogel capacity Continuously driving down COGS Background includes progressive engineering and manufacturing management positions Over seven years experience leading high-volume contact lens manufacturing plants at CooperVision Began career as an R&D engineer and project manager, which allowed leveraging our technology transfer process – positive results demonstrated in Avaira and silicone hydrogel toric capacity expansions |
 21 The Cooper Companies Analyst Meeting 2008 Dr. Arthur Back Vice-President, Research and Development Responsibilities include Developing CVI’s family of silicone hydrogel products, including currently transferring silicone hydrogel torics to manufacturing plants Continuously improving product performance Developing and executing product pipeline Background includes a successful career in contact lens optics and materials research PhD with 24 years experience of contact lens research and development Successfully managed the Avaira technology transfer to our manufacturing plants |
 CooperVision Commercial Update Jeff McLean Executive Vice President, Commercial Strategy |
 23 The Cooper Companies Analyst Meeting 2008 To Enhance Each and Every Contact Lens Experience Our Vision |
 24 The Cooper Companies Analyst Meeting 2008 We market contact lenses that enhance the experience of eye care providers and wearers alike through the application of technology, expertise and service. We listen to our customers and respond to their diverse needs. Our Mission |
 Market Trends |
 26 The Cooper Companies Analyst Meeting 2008 U.S. Silicone as a % of Total Market Since Intro on TP Basis 43.5% 46.3% 0.1% 2.1% 0.7% 0.5% 40.7% 38.2% 37.0% 35.6% 30.2% 27.3% 25.9% 23.1% 18.0% 14.4% 11.3% 11.6% 9.1% 3.8% 3.4% 3.2% 2.5% 44.1% 41.6% 46.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Continuous Wear Two Week Intro Source: Independent Market Research Data/Management Estimates
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 27 The Cooper Companies Analyst Meeting 2008 U.S. % of Total Worldwide Silicone Patients 0% 10% 20% 30% 40% 50% 60% 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Total Spheres Torics Multifocals Source: Independent Market Research Data/Management Estimates
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 28 The Cooper Companies Analyst Meeting 2008 Competitive Shares of Total Silicone Lenses on a TP Basis 15.5% 13.3% 18.0% 13.4% 17.4% 13.8% 12.8% 10.6% 8.0% 6.7% 4.8% 12.7% 21.3% 21.1% 23.9% 22.0% 20.7% 22.2% 29.7% 30.9% 29.3% 34.6% 39.0% 39.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.4% 3.2% 2.0% 0.2% 58.8% 62.5% 56.0% 64.5% 61.9% 64.0% 57.5% 56.5% 60.1% 57.4% 54.4% 56.0% 0% 10% 20% 30% 40% 50% 60% 70% 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Bausch Ciba CooperVision J&J Data on File Source: Independent Market Research Data/Management Estimates
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 29 The Cooper Companies Analyst Meeting 2008 Competitive Shares of Silicone Spheres On a TP Basis 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8.0% 11.7% 7.8% 11.6% 8.3% 7.4% 7.4% 5.6% 7.5% 5.5% 8.5% 6.3% 26.2% 26.9% 30.4% 27.8% 25.8% 27.8% 36.4% 37.8% 35.1% 40.4% 44.0% 44.3% 2.7% 0.2% 5.9% 4.1% 60.0% 62.7% 55.3% 64.3% 62.6% 63.9% 56.1% 53.7% 57.4% 54.1% 48.5% 50.3% 0% 10% 20% 30% 40% 50% 60% 70% 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Bausch Ciba CooperVision J&J Data on File Source: Independent Market Research Data/Management Estimates
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 30 The Cooper Companies Analyst Meeting 2008 Soft Patient Visits - Last 8 Period Trend 7,082 7,239 6,582 6,826 7,029 8,340 6,748 7,060 4,461 4,186 5,359 4,349 4,114 3,918 4,464 4,425 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Total NF/RF Source: Independent Market Research Data/Management Estimates
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 31 The Cooper Companies Analyst Meeting 2008 Total Patient Share Total Soft Lenses – HPR 42.5 42.3 1.6 1.5 13.8 13.8 20.0 19.2 22.9 22.4 0 10 20 30 40 50 Current Quarter Last 12 Months Bausch & Lomb CIBA CooperVision Vistakon Other Source: Health Product Research (HPR) |
 32 The Cooper Companies Analyst Meeting 2008 NF/RF Patient Share Total Soft Lenses – HPR 41.6 41.7 1.6 1.4 15.0 14.1 18.8 19.5 22.4 23.9 0 10 20 30 40 50 Current Quarter Last 12 Months Bausch & Lomb CIBA CooperVision Vistakon Other Source: Health Product Research (HPR) |
 33 The Cooper Companies Analyst Meeting 2008 Easy To Do Business With 0 2 4 6 8 10 Ciba 8.14 8.34 8.09 8.22 8.20 Johnson & Johnson 7.82 7.88 7.97 8.32 8.25 CooperVision 8.04 8.26 8.32 8.40 8.32 Bausch & Lomb 7.89 7.97 7.59 7.57 7.59 mean importance 8.83 8.83 8.83 8.83 8.83 Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 2 2 1 1 1 [Wave 5 N = 323] Source: Independent Market Research Data/Management Estimates
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 Global Market Statistics EMEA Asia-Pac 15% Monthly: 28% 2-Week: 57% Daily: 50% Monthly: 12% 2-Week: 38% Daily: Global 27% Monthly: 39% 2-Week: 34% Daily: Source: Management estimates 34 Modality Breakdown Americas 25% Monthly: 65% 2-Week: 10% Daily: CooperVision’s Opportunity is Tremendous – We Compete In All Segments |
 35 The Cooper Companies Analyst Meeting 2008 CVI - Keys To Success We win: On intangibles Culture Flexibility Approachability Team On focus – we market contact lenses On flexibility – private label And we continually challenge ourselves to
be different
We tie: On product portfolio R&D Pipeline Manufacturing Technology We lose: Consumer awareness |
 CooperVision Manufacturing Fernando Torre Vice President, Manufacturing |
 37 The Cooper Companies Analyst Meeting 2008 Global Manufacturing Organization Southampton, UK Rochester, NY Norfolk, Virginia Juana Diaz, Puerto Rico Adelaide, Australia Madrid, Spain |
 38 The Cooper Companies Analyst Meeting 2008 Global Manufacturing Organization Hamble Frequency Spheres & Torics Proclear Spheres Biofinity Spheres Biofinity Torics Avaira Spheres Warrior Close One Day Spheres Proclear One Day Juana Díaz One Day Spheres One Day Torics Proclear One Day Biomedics Spheres & Torics Avaira Spheres Norfolk Proclear Spheres, Torics & Multifocals Biomedics XC Biomedics EP Molding Manufacturing Operations Scottsville Plant Lathing Lathing Manufacturing Operations UK Lathing BU Adelaide Madrid |
 39 The Cooper Companies Analyst Meeting 2008 Manufacturing Volume by Plant 52% 40% 6% 2% Puerto Rico UK Norfolk Other |
 40 The Cooper Companies Analyst Meeting 2008 Manufacturing Capacity Trend 728.3 900.9 1001.7 1308 1149.5 0 200 400 600 800 1000 1200 1400 2007 Actual 2008 Actual/Fcst 2009 Budget 2009E Capacity 2010E Capacity |
 41 The Cooper Companies Analyst Meeting 2008 Manufacturing Productivity Trend 0 1000 2000 3000 4000 5000 6000 7000 2007 2008E 2009E 0 200 400 600 800 1000 1200 Volume (Million Lenses) Total Headcount |
 42 The Cooper Companies Analyst Meeting 2008 Manufacturing Ramp up for Avaira vs. Biofinity Year 1 Year 2 Year 3 Avaira Spheres Biofinity Spheres Note: Volume estimates are based on actual and forecasted production.
|
 CooperVision Research & Development Arthur Back BOptom PhD FAAO Vice President, R&D |
 44 The Cooper Companies Analyst Meeting 2008 CooperVision R&D Investment: Expanded Capability Pre-2005 2008 Sites Southampton, UK Southampton, UK Pleasanton,CA Square Footage 10,000 44,000 Employees 30 115 PhD Level Scientists 2 30 Prototype Manufacturing Lines 1 5 Material Competency 80% external 20% external Annual Investment (CVI) sub-$10M Approx. $32.5M |
 45 The Cooper Companies Analyst Meeting 2008 Proclear 1 Day Biomedics EP in Omafilcon A Evolution 1 Day (Japan) Single use Ocufilcon D toric Biofinity monthly silicone hydrogel Avaira 2 week silicone hydrogel R&D Investment: Products Developed Since 2005 CooperVision |
 46 The Cooper Companies Analyst Meeting 2008 R&D Investment: Product Development Focus Advanced Contact Lens Materials Advanced Hydrogels Advanced Silicones Value-Added Materials Advanced Designs in Specialty Category Vision Correction CooperVision |
 47 The Cooper Companies Analyst Meeting 2008 R&D Investment: The Future Multiple new products anticipated through to 2010 Key specialty products into silicone materials New materials Other design/chemistry Continue focus on developing internal R&D function CooperVision |
 Nick Pichotta CEO CooperSurgical Business Unit Update |
 49 The Cooper Companies Analyst Meeting 2008 Fertility Clinic 6% Office 63% Hospital 31% CooperSurgical - Overview CooperSurgical (CSI) develops, manufactures, and markets medical devices, diagnostic products and surgical instruments for gynecologists and obstetricians Leader of the fragmented US medical device segment of women’s healthcare Holds an estimated 9% share of $1.6M market* Leader of in-office OB/GYN products Headquartered in Trumbull, CT Management team Nicholas J. Pichotta, CEO Paul L. Remmell, President & COO Robert D. Auerbach, M.D., FACOG, SVP & Chief Medical Officer
* Source: Equity research Total Employees 555 G&A 43 Sales, Marketing 127 Cust Service, Tech Support 29 Engineering 14 Manufacturing 322 Distribution 20 Revenues by Point of Sale |
 50 The Cooper Companies Analyst Meeting 2008 17.2 25.4 28.7 30.1 46.4 58.5 71.4 82.0 101.5 108.7 124.8 151.1 165 - 170 0 50 100 150 200 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E History of CooperSurgical CSI was founded as a start up subsidiary within COO in 1990 Top line growth every year since 1996 Proven track record of successful M&A execution and integration Completed 23 acquisitions in the past 10 years Strong focus on increasing margins through management expertise and superior
manufacturing/distribution capabilities CSI Revenue* *$ in millions |
 51 The Cooper Companies Analyst Meeting 2008 Women’s Healthcare Market Demographic trends through 2025: Number of women of reproductive age will grow by 10% Women between the ages of 45 and 64 will grow by 30% Impact on visit activity: Birth-related visits stable Fertility visits increase Hysterectomy rates stable Incontinence visits and surgical procedures increase Sterilization rates stable Management of menopausal symptoms increase 136,377 Total 40,866 Other 613 Incontinence of urine 936 Infertility screening 1,061 Absence of menstruation 2,065 Genital symptoms 2,643 Urinary tract infection 2,974 Routine Post-partum follow-up 3,028 Abnormal Pap Smears 3,150 Surgery follow-up 4,043 Osteoporosis 5,701 Vaginitis 6,053 Menstrual Disorders 6,607 Female Climacteric (menopause) 14,396 Contraceptive Management 20,175 Gynecologic Examination 22,066 Normal Pregnancy 2006 Visits (000) Why Women Visit an OB/GYN* *Source: Verispan PDDA, 2006 top 50 Diagnosis Source: Independent Market Research Data/Management Estimates
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 52 The Cooper Companies Analyst Meeting 2008 Procedure Type # of Procedures (000) Childbirth 4,100 Pelvic floor surgery 192 Operations on female genital organs 4,058 Oophorectomy and salpingo-oophrectomy 511 Bilateral destruction or occlusion of fallopian tube 662 Hysteroscopy 237 Excision or destruction of lesion or tissue of uterus and supporting structures 179 Abdominal hysterectomy and hysterectomy not otherwise specified 407 Vaginal hysterectomy 184 Diagnostic dilation and curettage 475 Key U.S. Hospital Procedures Source: Independent Market Research Data/Management Estimates
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 53 The Cooper Companies Analyst Meeting 2008 Women’s Healthcare Points of Care OB/GYN Offices 13,665 Hospitals 4,290 Fertility Clinics 394 Group Practice Profiles: 32,333 13,665 Total 5,738 2,488 Multi-specialty 26,595 11,177 Single Specialty Number of OB/GYNS Number of Practices Type of Group Provider breakdown Source: Independent Market Research Data/Management Estimates
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 54 The Cooper Companies Analyst Meeting 2008 CSI Sales Force |
 55 The Cooper Companies Analyst Meeting 2008 Hospital 31% Office 63% Fertility Clinic 6% CSI Product Lines by Point of Care IVF Competitors Market Share IVF Product 7 30% Office Competitors Market Share Incontinence 3 60% Colposcopy 4 70% Gyn Office Instruments 10 10% Pap Brush 2 90% Fetal Dopplers & Monitors 5 5% LEEP Products 10 40% Endometrial Sampler 7 70% Hospital/OR Competitors Market Share Surgical Sterilization 5 15% Uterine Manipulation 5 50% Trocar Closure Device 2 70% Surgical Site Retractor 3 60% Neonatal Products 4 20% Vacuum Assisted Delivery 1 30% Hystersonography Device 4 40% |
 56 The Cooper Companies Analyst Meeting 2008 Current Product Portfolio: Office HPV Management Uterine Conditions Management Osteoporosis Gynecologic Instruments and Disposables Incontinence Obstetrics |
 57 The Cooper Companies Analyst Meeting 2008 Current Product Portfolio: Hospital Uterine Conditions Management Surgical Site Management Obstetrics Port Site Closure Sterilization Green Surgical Trocars |
 58 The Cooper Companies Analyst Meeting 2008 Current Product Portfolio: Assisted Reproductive Technologies
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 59 The Cooper Companies Analyst Meeting 2008 CSI Performance Revenue details: 15% CAGR from 2005 through 2008E 15% of revenues are international 19 core product categories with over 600 products Margin Details Consistent GPM and OM improvements over the past several years Other Minimal CapEx requirements Significant Free Cash Flow generation CSI Revenue & Operating Margin* 109 125 155 165-170 18% 19% 19% 20% 0 20 40 60 80 100 120 140 160 180 2005 2006 2007 2008E 16% 17% 18% 19% 20% 21% 22% *$ in millions CSI Quarterly Revenue & Operating Margin* 42.7 39.9 20% 18% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Q3 2007 Q3 2008 16% 17% 18% 19% 20% 21% 22% |
 60 The Cooper Companies Analyst Meeting 2008 Strategies for Growth Focus on women’s health Continue to consolidate the market Advance technologies Grow hospital and fertility segments Capitalize on demographic trends |
 61 The Cooper Companies Analyst Meeting 2008 Key Takeaways Well established/recognized manufacturer of OB/GYN devices Dedicated to provide the highest quality of products and service to the OB/GYN Highly skilled direct sales force to cover the US office and outpatient hospital markets Strong sales presence in GYN OR, L&D and Fertility Clinics enhances the relationship with the OB/GYN Strong pipeline including a new Trocar product |
 Financial Review & Outlook Gene Midlock Chief Financial Officer |
 63 The Cooper Companies Analyst Meeting 2008 Six Months – Areas of Focus Six Months Areas of Focus: Free Cash Flow Debt Reduction Enhanced Forecasting Reduction and Leveraging of G&A |
 64 The Cooper Companies Analyst Meeting 2008 Q4 and 2009 Guidance Fiscal 4Q08 Guidance* EPS: $0.58-$0.64 Revenue: $285M - $295M Gross Margin: Approx. 60% FCF: Positive ETR: 26.5% Share Count: 45.3M No Callouts anticipated Fiscal 2009* CapEx: $125-$140M ETR: 15-17% No Callouts anticipated Additional Guidance on 4Q Earnings Call (Dec. 9) * As issued on 9/4/08. |
 65 The Cooper Companies Analyst Meeting 2008 Effective Tax Rate Annual rate Fairly consistent – 2008 15 – 17% Geographic mix Risk reserve – favorable audit history is decreasing reserves Quarterly rate volatility – Risk reserve for uncertainties GAAP requirement as “discrete items” release of reserves in quarter in which statute of limitations expires, or probability
of assessment changes Setting up of interest reserves on a quarterly basis Operations in 25 countries, with differing tax laws FY 2008 “discrete items” by quarter Q1, $500k. Q2, $200k. Q3, ($4.9M) Q4, $100k FY 2009 anticipated “discrete items” by quarter Q1 and Q4, relatively large; Q2 none; Q3, moderate |
 66 The Cooper Companies Analyst Meeting 2008 Gross Margin Drivers Product mix driven by single-use, SiH and specialty lenses Leveraging manufacturing capability Gen II conversion FX Off-shore sales and manufacturing Hedging Off-shore inventory |
 67 The Cooper Companies Analyst Meeting 2008 Foreign Exchange Currency Hedges impacted Gross Margins 290 bps in Q3 (non-GAAP) All contacts designated against COGS Non-GAAP (USD) Scenarios Comparison Q3 (No Hedges) Q3 (COGS) Revenue 285,884,000 285,884,000 COGS 113,520,753 121,899,000 Total Q3 172,363,247 163,985,000 Gross Margin 60.3% 57.4% GM Difference - 2.9% |
 68 The Cooper Companies Analyst Meeting 2008 Operating Margin Drivers Sales & Marketing Support new product launches Distribution Distribution center consolidation R&D Growing with sales G&A |
 In
Summary |
 70 The Cooper Companies Analyst Meeting 2008 5 Key Takeaways Depth of management team Well positioned to leverage growth Market leading product lines Integration completed Driving efficiencies |
 QUESTIONS? |
 72 The Cooper Companies Analyst Meeting 2008 Contacts: Robert S. Weiss President and Chief Executive Officer Eugene J. Midlock Senior Vice President and Chief Financial Officer Albert G. White III Vice President, Investor Relations & Treasurer Phone: 925-460-3663 Fax: 925-460-3648 Email: awhite@cooperco.com Kim Duncan Director, Investor Relations Phone: 925-460-3663 Fax: 925-460-3648 Email: kduncan@cooperco.com The Cooper Companies Contact Info Corporate Headquarters: 6140 Stoneridge Mall Road, Ste 590 Pleasanton, CA 94588 www.coopercos.com www.coopervision.com www.coopersurgical.com |