Investor Meeting

March 2024

Breakthrough Ultrasound For Non-Invasive

Skin Tightening

DISCLAIMER

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Sofwave Medical Ltd. (the "Company" or "Sofwave") and should not be regarded as a recommendation or an opinion on such matters. The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its business required for any decision concerning an investment in the Company's securities. This Presentation includes forecasts, estimates, assessments, expectations and other information, intent or belief pertaining to future events and/or matters, which constitute "forward-looking statements" as defined in the Securities Law 5728-1968, which is based on current expectations, projections and assumptions about future events. Actual results may differ materially due to variety of factors, some of which the Company has no control over and cannot be reasonably foreseen at this date, including, but not limited to: dependency on third parties engaged by or who contracts the Company and its services, change in the overall economy; the duration and severity of the COVID-19 (coronavirus) pandemic and its impact on the Company and on local and global economy and the Company's ability to manage and develop its business. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation. Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent third party sources the accuracy of such information and the assumptions on which such information is based have not been independently verified. The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.

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Investor meeting March 2024

Presenters:

  • Dr. Shimon Eckhouse, Co-Founder and Chairman
  • Lou Scafuri, CEO
  • Assaf Korner, CFO
  • Dr. Lehavit Akerman

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2023 in Numbers

$50.3M

Revenues (2023)

+41% YoY

Growth

74.8% GM Non-GAAP (2023)

(*) Exc. SBC

First Ever

Quarterly

Operating Profit(*)

~$24.4M Cash

As of December 31, 2023

$13M Recurring

Revenues (2023)

+81% YoY Growth

Over 225,000

Treatment

(inception to date)

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Major Strategic Accomplishments in 2023

A year of Solid Execution

Record Revenue growth; Narrowed cash burn; Solid balance sheet

    • FDA Clearance for reduction of Acne Scars
    • FDA Clearance for Precise Applicator
    • FDA Clearance for Sofwave Smart: IoT (wireless) Module
    • FDA Clearance for skin laxity on upper arm
    • FDA Clearance for Pure Impact EMS module
  • Regulatory Approval in Mexico
  • Opened a new subsidiary in the UK
  • Second US patent approval
  • Brand Awareness activities and practice adoption driving procedure growth >225K treatments;
    • >6M YouTube views
    • 770K Followers across all channels
    • Engagement rate >4%

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Q4 2023 and YTD Summary

  • We had a very successful year of growth and utilization
  • Our product and technology is well-recognized by top core plastic surgeons and dermatologist KOL's as disruptive and innovative
  • We are the emerging market leader in skin lifting and tightening
  • Our focus on the core customer had traction plus customers paid cash or self-financed
  • We have global strength: Our channel to market capability extends to 35+ markets
  • Our Brand Awareness with both B2B and B2C is accelerating
  • Our execution has been solid: scalable, lean infrastructure in-place to support continued high growth and profitability

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Market Conditions and Trends

  • Globally, the core market remained solid; core doctors (dermatologists and plastic surgeons) demonstrate continued strong interest in new technology
  • Market slowdown is seen among non-core (general practitioner, spas) and new providers in Q4 due to the impact of inflation/high-interest rates on the global economy
  • Patients are seeking "natural-looking" results when seeking treatment
  • Procedure price point is driving non-invasive procedure growth in plastic surgery segment
  • GLP-1Agonists (new weight loss injection) are generating aesthetic procedure demand:
    • GLP-1Agonists are everywhere and driving demand for tightening, lifting, laxity improvement and muscle toning

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Positioned for Continued Growth

Addressing a $2.3B Total Addressable Market (TAM): GLP-1 Agonists Accelerating Faster Growth of Market

Foundational investment in clinical studies led to successful broad expansion of FDA

clearances to 8

KOLs as early adopters = fast sales conversion and brand advocacy:

  • Peer to peer influencers (FOMO)
  • Core Physicians influence market acceptance

In-house digital team with focused

efforts to grow digital presence and brand awareness driving procedure growth

Continued expansion of direct sales team in US

to increasing market coverage across customer segments

  • Market expansion in EMEA, APAC and LA
  • Added Practice Development Specialists to drive utilization and pulse sales

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Driving Procedure and System Growth through Brand Awareness

Sofwave "frictionless" Business Model:

-Customer Acquires Device

-Each treatment utilizes pulses of energy

-Digital Download of Treatment Pulses on demand offer significant advantage

225,000 Treatments to date

B2C and B2B

Brand Awareness

campaigns are

focused to drive

adoption and

procedure growth

Customer

reinvest in digital

Driving

marketing

procedure

creating

synergistic

demand

demand for

accelerates ROI

Sofwave

for customer

treatments

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Driving Procedure Growth through Increasing Utilization

Practice Development Specialist increase account coverage

Added PDM's in US; EMEA and APAC

  • Primary responsibility is to drive pulse sales revenue growth through driving utilization in the assigned territory.
    • Increase effective territory penetration and coverage to drive sales and increase the provider's ability to attract and convert patients for Sofwave treatment
    • Providing training, presentations and demonstrations to the customer on application and use of the company's products to help provider sell current patients on Sofwave
    • Educating and supporting the customer with marketing strategies and digital tools to drive new patients to the provider for Sofwave treatment

PDM

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Disclaimer

Sofwave Medical Ltd. published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 07:02:03 UTC.