Sofwave Medical Ltd. — Investor Presentation 2023

May 10, 2023

Investor Meeting

May 2023

Breakthrough Ultrasound For Non‐invasive Skin Tightening

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.

DISCLAIMER

Investor meeting May 2023

Presenters:

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

Q1 2023 in Numbers

\$2.2M Recurring Revenues +74% YoY Growth

74.1% GM Non-GAAP

~\$29M Cash As of March 31, 2023

Over 125,000 Treatment (inception to date)

2 Additional FDA Clearances

Current Market Conditions

Market Conditions:

• Global market conditions remain favorable despite macro concerns; market demand continues to grow in noninvasive skin tightening segment
• Sofwave ROI 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 such as the American Society of Laser Science and Medicine (ASLMS) and AMWC (Monaco)

Trends

• People are seeking "natural-looking" results when seeking treatment
• Influencers drive consumer demand particularly among younger patients seeking treatments
• Physicians expect consumer brand awareness
• Procedure pricing is increasing in certain markets- positioned as "premium" brand
• Multiple treatments are being requested by patients

Positioned For Accelerated Growth

Investment in clinical studies leads to successful expansion of FDA approved, non-invasive, aesthetic eyebrow, chin, and neck "lift" and Cellulite improvement as well as future body indications

Effort to grow digital presence has led to >75K website visits per month and >470K social media followers

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

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

Rapidly expanding direct sales effort in US is increasing market coverage:

• Non-core Medispa sales are flourishing – through increased sales coverage
• | 6 • Market expansion in EMEA and APAC through growing distribution network and additional regulatory clearances

Addressing a \$2.3B Total Addressable Market (TAM)

2023: Major Strategic Accomplishments to Date

• FDA Clearance for Precise Applicator
• FDA Clearance for Sofwave SmartTM IoT Module
• Regulatory Approval in Mexico
• Opened a new subsidiary in the UK
• US and APAC Telemarketing Campaign and Social Growth to drive 125K treatments

• Main goal allowing the user treatment flexibility and easier access to smaller and more curved areas
• Similar technological characteristics and similar indications for use as the current "Lift" applicator
• Same mode of action as the 'Lift' applicator
• Treatment areas can be:
  • Around the eyes (Peri Orbital)
  • Around the mouth (Peri Oral)
  • Forehead
  • Along the jawline

FDA Approval for the Precise Applicator

FDA Approval for Sofwave SmartTM IoT (Internet of Things)

• Sofwave Smart adds WiFi connectivity to Sofwave devices
• Wi-Fi connectivity will allow (in the first stage):
  • Remote software upgrades
  • Automatic pulses purchasing process (without the need to insert a 16-digit code)
  • Uploading logs to Sofwave cloud
  • Uploading Sofwave systems data to Sofwave cloud (e.g., pulses per treatment, energy levels, treatment areas, etc.)
  • Business intelligence an opportunity to learn about the usage of Sofwave systems in the field

Volume of Mentions 1900/month

BROADCAST

19 placements, 20,259,087 viewers

Brand Awareness Rapidly Expanding

Regional Influencer Campaigns with Celebrities

Major Industry Awards

Future of Beauty Award for

Best in Skincare: Sofwave - Ultrasound Treatment

Major Tradeshow Presence Expands: ASLMS Highlights (American Society for Laser Medicine and Surgery)

• Over 15 podium presentations on Sofwave
• KOL support extended to peer to peer selling
• Tech Connect Segment on Skin Tightening by top KOLs with clear endorsement for Sofwave as treatment of choice
• Competitors clearly noticed our momentum – opportunity to recruit key HR

Sofwave™ Around the World

SPAIN

Germany

Thailand

ISRAEL

Global Channels Continue to Grow: Sofwave Partners in 36 Countries

Financial Highlights

Continued strong YoY revenue increase with 86% growth in Q1/2023

Revenue Growth

Annual Growth

Geographical Split

North America EMEA APAC LATAM

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

• S&M and R&D expenses increase according to the plan to continue and invest IPO proceeds
• G&A expenses remained at similar levels YoY

Financial Highlights Q1 2023 – P&L (\$'K)

	For the 3 months ended March 31,		Stock Based Compensation		Excluding Stock Based Compensation
	2023	2022	2023	2022	2023	2022
Revenues	10,407	5,586	-	-	10,407	5,586
COGS	2,736	1,487	42	81	2,694	1,406
Gross Profit	7,671	4,099	42	81	7,713	4,180
	73.7%	73.4%			74.1%	74.8%
R&D expenses	2,984	2,694	186	370	2,798	2,324
S&M expenses	6,731	3,842	244	477	6,487	3,365
G&A expenses	1,696	1,828	260	446	1,436	1,382
Operating Loss	(3,740)	(4,265)	732	1,374	(3,008)	(2,891)

	March 31, 2023	Dec 31, 2022
Cash and Cash Equivalents	28,992	32,005
Trade Receivables	5,165	4,591
Other Receivables	1,828	1,307
Inventory	4,774	4,026
Total Current Assets	40,759	41,929
Total Non-Current Assets	3,963	4,148
Total Assets	44,722	46,077
Total current liabilities	14,308	12,408
Total non-current liabilities	1,180	1,330
Shareholders' equity	29,234	32,339
Total liabilities and shareholders' equity	44,722	46,077

Financial Highlights – BS (\$'K)

Strong cash position with \$29M as of March 31, 2023

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 poised to disrupt an industry with outdated inferior solutions
Rapid industry adoption achieving +86% growth in Q1 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 125,000 treatments completed

Significant brand awareness growing social media following to over 470,000 followers

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