Sofwave Medical Ltd. — Investor Presentation 2024

May 9, 2024

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 the risk factors which are inherent to the Company's activity, third party decisions, including regulatory authorities and engagements with third parties, as well as by developments in the economic environment and the external factors which impact the Company's activity, which cannot be assessed in advance and are out of the Company's control. 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 2024

Presenters:

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

Q1 2024 in Numbers

75.4% GM Non-GAAP

1 New Product Launch

\$4.7M Recurring Revenues +118% YoY Growth

Over 280,000(*) Treatment (inception to date)

(*) Company estimation

Q1 2024 Overview

• Solid Quarter of growth and console placements
• Our focus on the core physicians had traction plus many customers paid cash or self-financed
• Pulses sales were exceptional and driven by expanding brand awareness
• Solid launch in the US for Arm Lift Clearance and Sofwave plus Pure Impact to major KOL's
• We made significant investment to bring world class leadership experience to global sales and marketing teams
• Our execution has been solid: scalable, lean infrastructure in-place to support continued high growth and profitability

Market Conditions and Trends Q1 2024

• Globally, the core market remained solid; core doctors (dermatologists and plastic surgeons) demonstrated continued strong interest in new technology. FDA Clearances are most meaningful here
• Market slowdown in non-core (general practitioner, spas and new providers) due to the impact of inflation/high-interest rates on the global economy: limited access to capital
• Lower procedure price point and nonsurgical alternatives are driving non-invasive procedure growth in plastic surgery segment
• GLP-1 Agonists are everywhere and driving demand for tightening, lifting, laxity improvement and toning

"GLP-1 drugs appear likely to increase demand for other types of aesthetic procedures with 62% of those taking GLP-1 drugs indicating that the drugs have made them more likely to seek aesthetic procedures in the future." (Needham - 1Q24 Aesthetics Patient Survey: Further Improvement in Spending Outlook, March 2024)

Foundational investment in clinical studies led to successful broad expansion of FDA clearances to 8

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

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

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

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

Addressing a \$4.1B Total Addressable Market (TAM): GLP-1 Agonists Accelerating Faster Growth of Market Positioned for Continued Growth

One Device, 7 FDA Clearances

Courtesy of Gilly Munavalli, MD

Proven Sofwave Technology Addresses Growing Market Demands Targeted Lifting and Definition that's Repeatable

Targeted Lifting Definition Repeatable

Superior Sales Model

Facilitating Strong Recurring Revenue

"VIRTUAL" consumable with each treatment

❶ CUSTOMER MAKES INITIAL PURCHASE OF THE DEVICE

❷ DEVICE IS PRELOADED WITH 3K PULSE STARTER KIT (APP. 10-15 TREATMENTS)

❹ THE RECURRING PULSE REVENUE IS \$1.50 PER PULSE AND TREATMENTS REQUIRE 100-250 PULSES. CUSTOMERS CAN BUY IN BULK ACCORDING TO THEIR USAGE

❸ PULSES ARE CONSUMABLE AND RESUPPLIED VIA PURCHASED DOWNLOADS FROM SOFWAVE'S ESTORE

Competitive Advantage: Sofwave's Fast ROI

High-Value Premium Treatment Benefits Both Providers and Patients

EXCELLENT SAFETY PROFILE ENABLES TREATMENT DELEGATION

4 TO 6-MONTH PRACTICE ROI VS > 1+ YEAR FOR COMPETITORS

FASTER ROI THAN COMPETITORS

Sofwave Partnership

PROVEN TECHNOLOGY

PRACTICE DEVELOPMENT MANAGERS

Focused on Success of PRACTICES' BUSINESS.

SOFWAVE SMART CONNECTIVITY PLATFORM ENABLES AUTOMATED FUNCTIONALITY FOR PRACTICES

EXCEPTIONAL LOYALTY PROGRAMS OFFERING ADVANTAGES AND SAVINGS TO PRACTICES AND THEIR PATIENTS.

PROVEN ROI SUCCESS

BRAND AWARENESS GLOBAL DTC ADVERTISING CAMPAIGNS ATTRACT PATIENTS

PRACTICE ENHANCEMENT PROGRAMS WITH MULTI PROMOTIONAL OPTIONS DESIGNED TO FIT PRACTICE NEEDS.

PREMIUM CARE

MINIMUM ADVERTISED PRICE

PRICING POLICY MAINTAINS BRAND AND PRICING INTEGRITY.

Social Medica Performance: In One Year, We have…

INCREASED FOLLOWERS, IMPRESSIONS,

ENGAGEMENTS, AND CLICKS!

• WHY IS THIS IMPORTANT?
  • PEOPLE ARE INTERESTED IN OUR
    • CONTENT
  • THEY'RE BEING EDUCATED ON WHY WE'RE
    • DIFFERENT AND WHY WE CAN PROVIDE
    • THE BEST SOLUTION FOR THEIR NEEDS
  • THEY WILL SEEK A LOCAL PROVIDER'S
    • OFFICE, BOOK AN APPOINTMENT AND
    • ULTIMATELY BECOME A PATIENT

900,000 FOLLOWERS ON SOCIAL MEDIA

| 15

280+ Placements ONLINE and Print Secured over 2.5 Billion impressions

Brand Awareness Rapidly Expanding

| 16

• The Sofwave "Got Lift" is immediately relatable and plays off of Sofwave's broad FDA clearances for lifting the Eyebrow and Submental Facial areas.

Since launch of campaign:

• 17M accounts reached on FB & IG.
• Content interactions have increased by +150% as apposed to previous period across all channels.
• Total engagements have increased by 32%

B2C Brand Awareness Marketing Novel "Got Lift" Brand Awareness Campaign

Case Study: APAC Got Lift 100+ Doctors Enrolled in Q1 2024

Sofwave Partners: Global Commercial Excellence

Shimon's slides

GLP-1 : Causing Weight Loss Resulting in Dermal Skin Laxity and Muscle Mass Loss

• J.P. Morgan Research forecasts that the GLP-1 market will exceed \$100 bn by 2030, driven equally by diabetes and obesity usage.
• GLP-1 Drugs are highly effective of caloric restriction
• Sedentary individuals or patients without weight training lose muscle at a much faster rate then fat.

GLP-1 Injections Require a Comprehensive Solution for Loose Skin on Body and Face and Muscle Mass Loss

Understanding "Ozempic Face" and "Ozempic Butt"

The terms "Ozempic face" and "Ozempic butt" have gained attention in online discussions and tiktok surrounding GLP-1 weight loss drugs. These terms describe the potential changes in the appearance of your face and buttocks due to losing a lot of weight with medications like Ozempic (semaglutide). Ozempic users have reported a reduction in facial volume and fat, resulting in wrinkles, sagging skin and excess skin. Similarly, the buttocks may also experience a loss of volume and firmness. From NewPatient Blog https://nowpatient.com/blog/can-i-get-sagging-skin-when-using-glp-1-weightloss-injections

https://ca.finance.yahoo.com/news/people-semaglutide-dont-resistance-train-132736573.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce _referrer_sig=AQAAAKhXvMU9zkrryYBrbDFbUOOPkBU-ocYjDTeZrPBM3jAOGSDZPnsW715LpmKJdYt_I7ei0sNx4m_QYHkXa6z_M53h6F3_UQu3rgyhHkcyK5KB 8ayrmS2pozsJ8PytyJkOISwn98q3tu7r8ZPkU-cWjD4EbdQYr_LtfBGodN2ZIdC

SofWave SUPERB Plus Pure Impact Optimal Solution for GLP-1 Patients

• Effective treatment of loose and sagging skin on any body part: "Ozempic Face"
• Effective treatment of loss of muscle mass due to GLP 1 induced fat and muscle volume loss

Skin Laxity: On Arms, Body and Face Treated by SofWave Sofwave: The only FDA Cleared Device for Treatment of Skin Laxity on the Upper Arms

Courtesy of Virginia Benits Roig MD Courtesy of Lehavit Akerman MD

Pure Impact Before and After – During Treatment sessions

Before Treatment Immediately Before 4th Session

A Sofwave User from Israel, Dr Liat Attas Fox, an Oculoplastic Surgeon

A Sofwave User from Israel, Dr Liat Attas Fox, an Oculoplastic Surgeon

A Sofwave User from Israel, Dr Liat Attas Fox, an Oculoplastic Surgeon

From the Instagram Page of DR Liat Attas Fox, an Oculoplastic Surgeon, Modi'in Israel

From the Instagram Page of DR Liat Attas Fox, an Oculoplastic Surgeon, Modi'in Israel

Financial Highlights

Revenue Growth

Continued strong YoY revenue increase with 27% in Q1.24 vs. Q1.23 and 41% growth in 2023 vs. 2022

Annual Growth (\$'m)

Quarterly Revenue Growth

Quarterly Revenue Growth YOY (\$m)

2020 2021 2022 2023 2024

Q1 2024 Geographical Split

North America EMEA APAC LATAM

Re-confirming Company will achieve operating break-even in 2024

Both IFRS and IFRS Operating loss continue to narrow substantially and decreased YoY by 74% and by 85% respectively

S&M expenses continue to decrease as % of revenues to under 50%

G&A and R&D expenses continue to decrease YoY as % of revenues

Financial Highlights Q1 2024 – P&L (\$'K)

	For the 3 months ended March 31,		Stock Based Compensation		Excluding Stock Based Compensation
	2024	2023	2024	2023	2024	2023
Revenues	13,184	10,407	-	-	13,184	10,407
COGS	3,270	2,736	21	42	3,249	2,694
Gross Profit	9,914	7,671	21	42	9,935	7,713
	75.2%	73.7%			75.4%	74.1%
R&D expenses	2,648	2,984	148	186	2,500	2,798
S&M expenses	6.529	6,731	73	244	6,456	6,487
G&A expenses	1,694	1,696	270	260	1,424	1,436
Operating Loss	(957)	(3,740)	512	732	(445)	(3,008)

	Mar. 31, 2024	Dec. 31, 2023
Cash and Cash Equivalents	23,109	24,422
Trade Receivables	6,926	7,824
Other Receivables	2,417	2,588
Inventory	4,930	4,936
Total Current Assets	37,382	39,770
Total Non-Current Assets	3,975	3,766
Total Assets	41,357	43,536
Total current liabilities	14,752	16,419
Total non-current liabilities	688	774
Shareholders' equity	25,917	26,343
Total liabilities and shareholders' equity	41,357	43,536

Financial Highlights – BS (\$'K)

Strong cash position with \$23.1m as of March 31, 2024

Cash burn in Q1/24 reduced to \$1.3M vs. \$3.0M in Q1/23

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 +41% growth in 2023, scalable, lean infrastructure in-place to support continued high growth and profitability
Broad range of FDA clearances for lifting, laxity and wrinkle treatment on face and neck, cellulite, acne scars and arm laxity		global KOLs

Significant recurring revenue; over 30% of total revenue; over 280,000 treatments completed

Significant brand awareness growing social media following to over 900,000 followers

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