August 9, 2016 Confidential

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Values Compassionate, evidence-based, and patient-centred care

Innovation

Excellence

Commitment to continuous improvement

Right procedure with right patient to provide best possible Vision for Living TM

Clinical decisions drive business decisions

Hospitality

Mission

We will transform the way people see by combining exceptional surgical

skill with the most advanced and proven vision correction technology

available in a compassionate, safe, first-class environment.

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COMPANY TIMELINE Herzig continues to lead North America in setting the standard for High Definition Vision since being founded in 1996

Presently Herzig Eye Institute has the most advanced technologies in one centre in North America

1998 1999 2001 2002 2003 2005 2006 2007 2011 2012 2013 2014 2015 2016

Med

ical

•1st site in

Canada to

investigate

presbyopia

•1st in North

America with

WaveFront

Technology for

VISX

Technology

•Begins

Implantable

Contact Lens

(ICL)

•Develops 1st

unfunded

(private)

ambulatory

surgery centre

for ophthalmic

procedures

•1st private

centre in

Ontario to

provide

advanced

technology

packages to

Ontario

Residents

•1st commercial

Canadian site

to deploy

femtosecond

laser for first

commercial

“blade free”

LASIK

procedure

•1st in Ontario

to launch CK

radio

frequency

ablation for

treatment of

presbyopia

•1st centre in

North America

to introduce

LipiFlow® for

evaporative

dry eye

disease

•1st

TearScience

® Centre of

Excellence

•Adds

ReSTOR®

multifocal

intraocular

lens

•KAMRMA

Vision ™

introduced

•Develops new

Vireorential

Division and

Iridex IQ577

•1st to offer

Refractive

Laser Assisted

Cataract

Surgery

(ReLACS) with

Catalys®

precision laser

system

•1st in Canada

to offer

iDesign

Advanced

WaveScan

Studio

Aberrometer

•Presbeyond

Laser

introduced

•Symfony Lens

introduced

•Highest

volume SMILE

in North

America

•Zeiss Key

Opinion

Leader for

SMILE North

America

Op

era

tio

ns

•New operating

room and

receives out of

country

patients

•1st Vision

correction

centre in North

America to be

ISO 9002

certified

•North

American

Trademark for

“High

Definition

Vision”

•1st private

centre in

Ontario to

offer

Implantable

Contact

Lenses to

severely

myopic

patients

•Upgraded ISO

t0 9001:2000

•Develops eyes

over 40 and

HD vision

marketing

strategy

•Launches

Vision for

Living ™

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COMPOSITION OF REVENUE Change in source of revenue at Herzig Eye Institute over the last seven years

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *

LVC ATP/RL/ICL Femto Phaco Other

COMPETITIVE LANDSCAPE of Toronto

• 5 Highly recognized brands with strong DTC and developed OD Networks ranging from “high volume low cost model” to premium providers.

• Consumers shop around compare price and quality

• Consumers aware of LVC, “LASIK”

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Launch of SMILE at Herzig Eye Institute:

• the challenge of being “first” to “clear the jungle”

• lack of awareness in the market.

• a competitor launched an aggressive, negative campaign to optometrists in our referral network with MISINFORMATION

• there are optometrists in our network who continue to express concern requesting that we not perform SMILE on their patients

• competitor continued to instill fear in patients shopping around for LVC (a common occurrence in the Toronto market) and actively warned patients not to have SMILE

• encountered good old fashioned turf wars disguised as “waiting for clinical outcomes”

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IMPACT on CONVERSION:

• booking patterns have changed - same day conversion is rare with SMILE but getting better

• most patients know someone who has had LASIK and are expecting LASIK

• introducing SMILE causes them to pause - they need time to digest this option and do their own research before moving forward.

• Cannibalization happened initially, but after over 400 procedures we are seeing an attraction of new patients.

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REFINE MESSAGING. Get everyone playing off same sheet of music. • REQUIRED MORE SURGEON INVOLVEMENT Don’t shortcut the role of

the surgeon in patient selection and speaking with the patient. DON’T UNBUNDLE THIS ROLE to OD’s and refractive consultants.

• Don’t put down LASIK in order to push SMILE

• Don’t provide comparisons that introduce “negative” ideas as this will tap the FEAR they already have.

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What we expect in the future:

• early adoption has “cannibalized” LASIK volume but, as awareness increases, SMILE will contribute to practice growth

• growth in volume from contact lens failures, more OD referrals

• growth in volume from patients previously adverse to PRK/LASIK

• growth in volume from Asian population re: treatment of choice for patients with dry eye issues

• growth in patient ambassador volume/increase in overall awareness with Millenials and their use of social media platforms

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ADVICE TO ZEISS: HELP PREPARE the MARKET • HELP PREPARE THE MARKET:

• BUILD a great consumer education website, supported by digital campaigns to drive traffic to your website and link to Users’ practices

• Package results, papers, MILITARY EXPERIENCE and experience from around the world, provide to new accounts…

• Provide on-going educational support to OD community

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https://vimeo.com/186191706

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