Inspire Medical : Company Presentation May 2021

Inspire Medical Systems, Inc.

May 2021

NYSE: INSP

Disclaimer

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward- looking statements. In some cases, you can identify forward-looking statements by terms such as ''may,'' ''will,'' ''should,'' ''expect,'' ''plan,'' ''anticipate,'' ''could,'' "future," "outlook," ''intend,'' ''target,'' ''project,'' ''contemplate,'' ''believe,'' ''estimate,'' ''predict,'' ''potential,'' ''continue,'' or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. The forward-looking statements in this presentation relate to, among other things, statements regarding the impact of the COVID-19 pandemic on our business operations, financial results and financial condition, investments in our business, our growth strategies, our expectation that a substantial portion of postponed Inspire therapy procedures will be rescheduled, the activity of our commercial team once circumstances allow, full year 2021 financial and operational outlook, and positive insurance coverage of Inspire therapy and improvements in market access, clinical data growth, product development, indication expansion, market development, and prior authorization approvals.

These forward-looking statements are based on management's current expectations and involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, estimates regarding the annual total addressable market for our Inspire therapy in the U.S. and our market opportunity outside the U.S.; future results of operations, financial position, research and development costs, capital requirements and our needs for additional financing; commercial success and market acceptance of our Inspire therapy; the impact of the ongoing and global COVID- 19 pandemic; general and international economic, political, and other risks, including currency and stock market fluctuations and the uncertain economic environment; our ability to achieve and maintain adequate levels of coverage or reimbursement for our Inspire system or any future products we may seek to commercialize; competitive companies and technologies in our industry; our ability to enhance our Inspire system, expand our indications and develop and commercialize additional products; our business model and strategic plans for our products, technologies and business, including our implementation thereof; our ability to accurately forecast customer demand for our Inspire system and manage our inventory; our dependence on third-party suppliers, contract manufacturers and shipping carriers; consolidation in the healthcare industry; our ability to expand, manage and maintain our direct sales and marketing organization, and to market and sell our Inspire system in markets outside of the U.S.; risks associated with international operations; our ability to manage our growth; our ability to increase the number of active medical centers implanting Inspire therapy; our ability to hire and retain our senior management and other highly qualified personnel; risk of product liability claims; risks related to information technology and cybersecurity; risk of damage to or interruptions at our facilities; our ability to commercialize or obtain regulatory approvals for our Inspire therapy and system, or the effect of delays in commercializing or obtaining regulatory approvals; FDA or other U.S. or foreign regulatory actions affecting us or the healthcare industry generally, including healthcare reform measures in the U.S. and international markets; the timing or likelihood of regulatory filings and approvals; risks related to our debt and capital structure; our ability to establish and maintain intellectual property protection for our Inspire therapy and system or avoid claims of infringement; tax risks; risks that we may be deemed an investment company under the Investment Company Act of 1940; regulatory risks; the volatility of the trading price of our common stock; and our expectations about market trends. Other important factors that could cause actual results, performance or achievements to differ materially from those contemplated in this presentation can be found under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2020, as updated in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, and as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov and the Investors page of our website at www.inspiresleep.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this presentation. Any such forward-looking statements represent management's estimates as of the date of this presentation. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this presentation.

This presentation contains trademarks, trade names and service marks of other companies, which are the property of their respective owners. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

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Focus on a Strong Start to 2021!!!

• Updated FY 2021 Guidance:
• • Revenue: $192M - $196M, representing 66% - 70% growth from FY 2020 revenue of $115.4M
  • Gross margin: 84% - 85%
  • Territories: 8 to 9 territories per quarter
  • New U.S. centers: 36 to 40 centers per quarter
• In 2021, our focus will be to continue expansion by improving capacityand conversion:

• 1. Highlighting expansion of training new centers with focus on Ambulatory Surgical Centers (ASCs)
  2. Cadence of recruiting Territory Managers in-line with center expansion, along with support staff (FCRs)
  3. New Direct-to-Consumer campaigns to bring more people to the website
  4. Expansion of Advisor Care Program (call center) to capture most in-bound calls thereby driving improvements in patient connections to healthcare providers
  5. Grow capacity at existing centers
• New Category I CPT codes approved and in the RUC survey process
• New formal DRG code in Germany became effective Jan 1, 2021 (previous 5 years were under NUB system)

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Update on Inspire Operations: Impact of COVID-19

• We continue to closely monitor COVID-19 including:
• • We experienced cancelations or delays in cases in early 2021 in select states (Northeast and Southeast), but do not currently see significant impact beyond normal Q1 seasonality
  • With ASCs, we have some flexibility to move cases, but do not envision the localized lock-downs to be sustained
  • Center openings and new Territory Manager hiring remain strong
  • Continuing with an active prior authorization pipeline and high approval rates
  • Engaging and educating physicians and patients through our online platform using virtual health talks, online tools and the new Inspire Sleep app
  • Refocusing and expanding direct-to-consumer marketing strategies between radio and TV, as well as expanding call center coverage and improving conversion rates
• Focus remains on ensuring strong patient outcomes and follow-up

© Inspire Medical Systems, Inc.

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INSPIRE CONFIDENTIAL