Coppersmith Presentation to Alere Inc Stockholders
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Lack of Accountability
▪ Alere's corporate culture does not appear to embrace
operational accountability. Several facts support this:
> No C-suite change in over six years other than the
recent ADDITION of a COO, which we believe was a
reaction to stockholder pressure
> No stated goals for cost savings, profitability or growth
Ceased issuing guidance this year, after missing initial
projections for the last three years straight
> R&D budget was, until recently, 75% devoted to
projects at least 10 years out - likely outlasting even the
longest-term stockholders and limiting R&D
accountability
> Matrix management when poorly executed, as we
believe it is at Alere, can vastly confuse P&L
responsibility and diminish personal accountability
COPPERSMITH
Lack of Accountability:
A Vicious Cycle
No
Accountability
No Change
Bad Results
Poor Execution
We believe stockholders must demand accountability or nothing will changeView entire presentation