Sofwave Medical Ltd. — Investor Presentation 2023

Mar 8, 2023

Investor Meeting March 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 "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 March 2023

Presenters:

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

2022 in Numbers

\$7.2M Recurring Revenues (2022) +177% YoY Growth

74.6% GM Non-GAAP (12 months)

\$13.8M Revenues Q4/22 +55% YoY Growth

Over 100,000 Treatment (inception to date)

| 5

2022 – A Year of Major Milestones

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
• Currency impact across several countries: Japan and Korea is being closely monitored
• 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 and Company featured events IMCAS (Paris); ASDS (US); and AmSpa (US)

Trends

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

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 >450K 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
• Market expansion in EMEA and APAC through growing distribution network and additional regulatory clearances

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

Expanding Brand Awareness: Industry Awards

Financial Highlights

GM continues to improve with the increase of recurring revenues

Operating expenses increase according to the plan to continue and invest IPO proceeds in R&D and S&M

Financial Highlights 2022 – P&L (\$'K)

	For the 12 months ended December 31,		Stock Based Compensation		Excluding Stock Based Compensation
	2022	2021	2022	2021	2022	2021
Revenues	35,630	21,839	-	-	36,630	21,839
COGS	9,298	5,603	252	-	9,046	5,603
Gross Profit	26,332	16,236	252	-	26,584	16,236
	73.9%	74.3%			74.6%	74.3%
R&D expenses	12,442	8,236	1,586	1,170	10,856	7,066
S&M expenses	22,801	10,194	1,919	1,543	20,882	8,651
G&A expenses	8,433	6,808	1,378	2,322	7,055	4,486
Other Income	(4)	(135)	-	-	(4)	(135)
Operating Loss	(17,338)	(8,867)	5,135	5,035	(12,205)	(3,832)

	Dec 31, 2022	Dec 31, 2021
Cash and Cash Equivalents	32,005	46,209
Trade Receivables	4,591	6,319
Other Receivables	1,307	2,579
Inventory	4,026	2,018
Total Current Assets	41,929	57,125
Total Non-Current Assets	4,148	3,644
Total Assets	46,077	60,769
Total current liabilities	12,408	11,895
Total non-current liabilities	1,330	2,172
Shareholders' equity	32,339	46,702
Total liabilities and shareholders' equity	46,077	60,769

Financial Highlights – BS (\$'K)

Strong cash position with \$32M as of December 31, 2022

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

| 13

Quarterly Revenue Growth

Quarterly Revenue Growth YOY (\$M)

Clinical & Pipeline Update

Smart Science: Unique Patented Technology and Mode of Action vs. the Competition

• Why is it better?

• Excellent safety and comfort due to proprietary transducer array cooling technology and full epidermal protection. Practically Zero Down-time
• Excellent efficiency due to a unique array of volumetric, cylindrical-shaped thermal zones parallel to the skin surface.
• Significantly larger coagulation zone volume and skin area coverage than any other energy-based method
• The only ablative technology that tightens the skin in the "right direction", parallel to the skin surface
  • Excellent effectiveness
  • Excellent safety
  • Shorter treatment times
  • Better patient comfort
  • No bleeding, Evaporation or Stabbing of the Skin

Extending Our Product Line Beyond Face and Neck

Modular, add-on handpieces designed for additional applications used to:

SofWave in APAC: Single treatment results on Asian patients, Neck Lift

Courtesy of Dr. Rungsima, Thailand

Single treatment 11 months follow up

Courtesy of Dr. Collvile

Eye brow lifting single treatment

Courtesy of Annie Buinewicz, MD 8 weeks follow up

Courtesy of David McDaniel MD 6 months follow up

Before After Before After

The Power of Safe and Effective Skin Tightening – Single treatment eyes

Baseline 1 month post

Treating Loose Skin on Arms, Single Treatment Results

SofWave Technology: Skin tightening on the hands

Pre treatment 6 weeks post TX

Single treatment 6 weeks follow up

$$\approx \approx \text{момуз}$$

Dr. Virginia Benitez Roig

Pre treatment 6 weeks post TX

Baseline Pre Tx.2 (5 weeks after)

Courtesy of Dr. Munavalli

Baseline Pre Tx. 2 (7 weeks after)

Courtesy of Dr. Kilmer

Baseline Feb – 8 - 2022

3 Months FU June-4-2022

Courtesy of Dr. Chapas

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 +63% growth in 2022	to over 450,000 followers
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 100,000 treatments completed

Significant brand awareness growing social media following

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