Sofwave Medical Ltd.

Investor Presentation • Aug 8, 2023

Breakthrough Ultrasound For Non-Invasive Skin Tightening

Investor Meeting

August 2023

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 "forwardlooking 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.

DISCLAIMER

Investor meeting August 2023

Presenters:

• Shimon Eckhouse, Co-Founder and Chairman
• Lou Scafuri, CEO
• Assaf Korner, CFO

Q2 2023 in Numbers

Q2/23 \$12.4M Revenues +53% YoY Growth

Q2/23 \$3.3M Recurring Revenues +100% YoY Growth

H1/23 \$22.8M Revenues +67% YoY Growth

\$25.3M Cash As of June 30, 2023

Over 155,000 Treatment (inception to date)

75% GM Non-GAAP

Current Market Conditions

• Global market conditions remain favorable despite macroeconomic and political concerns
• Market demand continues to grow in the noninvasive skin tightening segment however expensive invasive plastic surgery procedures appear to be slowing
• Sofwave's ROI offers significant competitive advantage is even more pronounced in high interest rate environment since many customers choose to pay cash for purchases <\$100K
• Sofwave product has high creditability and brand awareness globally evidenced by the overwhelming global KOL interest and support by major physician peer group interest at major industry events the AMWC (Taiwan) and IMCAS Asia (Bangkok)

Trends

• People are seeking "natural-looking" results when seeking treatment
• Patients are more educated and asking for certain branded procedures driving physicians to expect consumer brand awareness programs from suppliers
• Sofwave is being positioned as a "premium" brand in major markets such as the US, Taiwan, Canada and Brazil

Investment in clinical studies leads to successful expansion of FDA cleared, noninvasive, eyebrow, chin, and neck "lift" and cellulite improvement as well as future body indications

In-house digital team with focused efforts to grow digital presence and bran awareness has led to >105K website visits per month and >516K social media followers

Continued expansion of direct sales team in US to increasing market coverage across customer segments

• Market expansion in EMEA and APAC through growing distribution network and additional regulatory clearances

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

• Peer to peer influencers (FOMO)
• Sofwave emerging as de facto skin tightening standard by global thought leaders

Addressing a \$2.3B Total Addressable Market (TAM) Positioned for Continued Growth

Gigi Leung, HK Singer and Actress

2023: Major Strategic Accomplishments to Date

• FDA Clearance for Precise Applicator
• FDA Clearance for Sofwave SmartTM IoT (wireless) Module
• Regulatory Approval in Mexico
• Opened a new subsidiary in the UK
• Second US patent approval
• US and APAC Telemarketing Campaign and Social Growth to drive 155K treatments
• Completed two large scale multi-center studies
  • Reduction of Acne Scars
  • Arm Lift

Solid Recognition by Industry Expands across Digital Channels

| 9 Future of Beauty Award for Treatments

Pioneering Award

Best Latest in Ultrasound

Best Non-Invasive Cellulite Treatment

Best in Skincare: Sofwave - Ultrasound Treatment

2023 Industry Awards

Brand Awareness Rapidly Expanding

516K Followers across all channels

New Campaign: Got Lift?

Consumer campaign featuring KOLS and patients has engagement from over 30K accounts on Instagram (2 weeks performance)

Global Channels Continue to Grow: Sofwave Partners in 36 Countries

Creating New Clinic Revenue Streams by Investing in Clinical Studies and FDA Clearances

Acne – Over Ten Billion \$ Market

Acne – Over Ten Billion \$ Market

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SofWave's SUPERB™ Technology effective on active acne

Baseline 3 months FU

Baseline 3 months FU

Financial Highlights

Continued strong YoY revenue increase with 53% growth in Q2/2023 and 66% in H1/2023

Revenue Growth

Q2 Revenue Growth

Annual Growth

2020 2021 2022

Q2/2023 Geographical Split

North America EMEA APAC LATAM

New regulatory approvals in Brazil and Mexico increase Latin America portion of global revenues

• GAAP and Non-GAAP Operating loss continues to narrow and decreased by 40% and by 35% YoY
• S&M and R&D expenses continue to decrease as % of revenues
• G&A expenses decrease YoY and as % of revenues

Financial Highlights Q2 2023 – P&L (\$'K)

	For the 3 months ended June 30,		Stock Based Compensation		Excluding Stock Based Compensation
	2023	2022	2023	2022	2023	2022
Revenues	12,380	8,065	-	-	12,380	8,065
COGS	3,141	2,094	41	53	3,100	2,041
Gross Profit	9,239	5,971	41	53	9,280	6,024
	74.6%	74.0%			75.0%	74.7%
R&D expenses	3,130	3,067	214	417	2,916	2,650
S&M expenses	7,398	5,640	84	445	7,314	5,195
G&A expenses	1,587	2,044	304	440	1,283	1,604
Operating Loss	(2,876)	(4,780)	643	1,355	(2,233)	(3,425)

• GAAP and Non-GAAP Operating loss continues to narrow and decreased by 27% and by 17% YoY
• S&M and R&D expenses continue to decrease as % of revenues
• G&A expenses decrease YoY and as % of revenues

Financial Highlights H1 2023 – P&L (\$'K)

	For the 6 months ended June 30,		Stock Based Compensation		Excluding Stock Based Compensation
	2023	2022	2023	2022	2023	2022
Revenues	22,787	13,651	-	-	22,787	13,651
COGS	5,877	3,581	83	134	5,794	3,447
Gross Profit	16,910	10,070	83	134	16,993	10,204
	74.2%	73.7%			74.6%	74.7%
R&D expenses	6,114	5,761	400	787	5,714	4,974
S&M expenses	14,129	9,482	328	922	13,801	8,560
G&A expenses	3,283	3,872	565	887	2,718	2,985
Operating Loss	(6,616)	(9,045)	1,376	2,730	(5,240)	(6,315)

	June 30, 2023	Dec 31, 2022
Cash and Cash Equivalents	25,307	32,005
Trade Receivables	6,038	4,502
Other Receivables	1,884	1,396
Inventory	4,659	4,026
Total Current Assets	37,888	41,929
Total Non-Current Assets	3,779	4,148
Total Assets	41,667	46,077
Total current liabilities	13,604	12,408
Total non-current liabilities	1,016	1,330
Shareholders' equity	27,047	32,339
Total liabilities and shareholders' equity	41,667	46,077

Financial Highlights – BS (\$'K)

Continuous major investment in inventory including raw materials to address the ongoing global supply chain challenges

Investment Highlights

Sofwave is delivering the next-generation patented energy based non-invasive aesthetic skin treatments disrupting an industry with outdated solutions
Rapid industry adoption achieving +66% growth in H1 2023
Broad range of FDA clearances for lifting, laxity and wrinkle treatment on face and neck, cellulite	global KOLs

Significant recurring revenue; over 20% of total revenue; over 150,000 treatments completed

Significant brand awareness growing social media following to over half a million followers

Growing regulatory clearances including recent approvals in Taiwan, Brazil and Mexico and widespread acceptance by