Sofwave Medical Ltd.

Investor Presentation • Aug 16, 2021

1H Earnings Call

Breakthrough Ultrasound Technology 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.

1H Earnings Call

Presenters:

• Lou Scafuri, CEO
• Shimon Eckhouse, Co-Founder and Chairman
• Miki Eden, CFO

Emerging Leader in Non-invasive Aesthetic treatments

• Highly differentiated technology platform with a strong pipeline, answering a large unmet need for non-invasive skin tightening served by sub-optimal solutions in a \$1.8B market growing at 15% annually
• Strong efficacy and safety profile validated in extensive clinical trials and solid global KOL support
• High patient satisfaction fast and comfortable treatment with minimal to zero down-time
• Attractive physician business model, great ROI, fast procedure, can be delegated to staff

Sofwave Emerging Market Leader

• Very fast growth 1H/21 revenue >\$10M
• Experienced team with a track record of aesthetic medical device commercial success and high investor value creation
• Strong Balance Sheet with \$50M Cash and Cash Equivalent

Sofwave Quarterly Revenue Growth (K\$)

* Quarterly breakdown unaudited

1H 2021 Market Conditions

• Increased levels of vaccination has expedited clinic reopening and patient demand for treatments- many clinics are overbooked
• Provider confidence necessary for capital equipment purchases continued to improve
• Demand for energy-based skin tightening treatments is a high growth segment
• "Zoom Boom" phenomena as removal of mask restrictions is driving facial treatment demand

1H 2021: Exceptional Quarter over Quarter Growth

• Total Revenue in 2020 was \$4.3M
• Q1 2021 Revenue was \$3.98M
• Q2 2021 Revenue rose to \$6.17M
• Gross margin rose from 61.2 % in 2020 to 73.8% in 1H 2021
  • Dramatically increasing Installed base and utilization
  • Procedure volume increases- almost at 10,000 procedures performed in 1H 2021
  • Doctors are using our systems with increased frequency, which is a great indication of the growing acceptance, endorsement, and implementation of our technology.

1H 2021 Highlights

• Total H1 revenue: \$10,156K
• North America: \$6,484K representing 64%
• Asia Pacific Australia and China: \$2,550K representing 25%
• Europe Middle East and Africa: \$1,122K representing 11%
• Market Access improved especially in US- continued investment in direct sales team
• New distributors expanding our channel to market capability
• Recent Regulatory Clearances in key markets: Canada and Australia

Sofwave Near Term Growth Drivers

• Expanding Global market and extensions of distribution channel
• Grow Direct sales force in the US and increase market coverage
• Build upon on strong KOL base
• Sign up distributors and pending regulatory clearance in Korea, Taiwan, China, Brazil and other Latin America countries
• Social and digital platform expansion to B2C to drive procedure demand
• Additional Applications
• "Lifting" indications by FDA- Eyebrow lift and Neck lift
• Body application: Cellulite, Abdominal Shaping, Arms, Buttocks, Decolletage

Financial Highlights

Revenues Cost of goods

Research and development expenses Sales and marketing expenses General and administrative expenses

Operating loss

Financial income Financial expenses Financial expenses, net

Loss for the period

For the six months For the year endedJune 30,		ended,
2021		2020 2020
	USD in thousands
(Unaudited) (Audited)
10,156	839	4,291
2,660	404	1,665
7,496	435	2,626
2,882	1,867	4,588
3,319	1,062	3,065
3,632	325	1,524
2,337	2,819	6,551
(275)	(20)	(14)
246	4,782	5,150
(29)	4,762	5,136
2,309	7,581	11,687

Financial Highlights

Current Assets Cash and cash equivalent Trade accounts receivables Other receivables Inventory Total current assets

Total non-current assets

Total assets

Total current liabilities

Total Non-current liabilities

Total shareholders' equity

Total liabilities and shareholders' equity

As of June 30, December		As of 31.
	2021 2020 2020
	USD in thousands
(Unaudited) (Audited)
49,572	2.519	2,644
4.433	506	1.468
415		237 282
151	505	117
54,571	3,767	4,511
422	151	309
54,993	3,918	4,820
5,037		989 2,203
	926 6,237 11	1,084
	49,030 (3,308)	1,533
		54,993 3,918 4,820

Sofwave is Transforming the Energy Based Device Office Solution: The Next Generation of Non-Invasive Skin and Body Treatments

The Huge Success of Non-Ablative Laser Based Technologies

Non-Invasive Laser Based Technologies

40 Million procedures per year

• Non-invasive
• No Downtime
• Short treatment times
• Very low efficacy
• Multiple treatments required
• Mostly laser-based technologies (high cost of manufacturing)

Closing the Gap using Ablative Technologies

Non-Ablative, Laser based technologies

• 40 million procedures/year (*)
• Non-invasive
• No down time
• Short treatment times
• Very low efficacy

sof wave"

• Multiple treatments required
• Mostly laser based technology (high cost of manufacturing)

RF micro-needling and fractional ablative lasers

• · Minimally invasive: need to penetrate and injure the uppers skin layer
• Better efficacy
• · Significant down-time
• · Risk of side effects
• · Cannot be delegated
• · Longer treatment times

Ablative "Minimally Invasive" Solutions: The Penalty of Upper Skin Injury

During Treatment

1 Day to 1 Week Post Treatment

Sofwave solves the unmet need in Office based medical aesthetic technology

Non-Ablative, Laser based technologies

• · 40 million procedures/year (*)
• · Non-invasive
• · No down time
• · Short treatment times
• · Very low efficacy

sotwove

• Multiple treatments required
• · Mostly laser based technology (high cost of manufacturing)

RF micro-needling and fractional ablative lasers

• · Minimally invasive: need to penetrate and injure the uppers skin layer
• Better efficacy
• Significant down-time
• · Risk of side effects
• · Cannot be delegated
• · Longer treatment times

The SofWave SUPERB™ solution

• · Non-invasive, no injury to the epidermis
• Better efficacy
• Minimal to zero down-time
• No side effects
• · Single treatment
• · Delegated to non-MD staff
• · Short treatment time

SofWave Product Pipeline and Vision

• Current Platform:
  • ⚬ Lifting
  • ⚬ Arms, Body, Buttocks
  • ⚬ Cellulite
• Future Platforms:
  • ⚬ Fat Lipolysis
  • ⚬ Body Shaping

Vision: Lead the business and technology of office based noninvasive aesthetic solutions

Expanding global market share, revenue growth and Strong GM

2023E total addressable market ~\$2.3B

*

Building the foundation to capture ~4% market share by 2023

Estimated 2023 Revenue >\$90M, >80% GM

*Source: Medical Insight 2021

SUMMARY

• Highly differentiated technology platform with a strong pipeline, answering a large unmet need for non-invasive skin tightening served by sub-optimal solutions in a \$1.8B market growing at 15% annually
• Strong efficacy and safety profile validated in extensive clinical trials and solid global KOL support
• High patient satisfaction fast and comfortable treatment with minimal to zero downtime
• Attractive physician business model, great ROI, fast procedure, can be delegated to staff • Very fast growth in revenue , ~\$4.3M in 2020, ~\$4M in Q1 21, ~\$6M in Q2 22 and
• significant increase in GM from 61% in 2020 to 74% in 1H22
• Experienced team with a track record of aesthetic medical device commercial success and high investor value creation

Questions and Answers