Breakthrough Ultrasound For Non-Invasive Skin Tightening

Investor Meeting

March 2024

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 March 2024

Presenters:

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

2023 in Numbers

\$50.3M Revenues (2023) +41% YoY Growth

\$13M Recurring Revenues (2023) +81% YoY Growth

74.8% GM Non-GAAP (2023)

~\$24.4M Cash

As of December 31, 2023

**First Ever Quarterly Operating Profit(*)**

Over 225,000 Treatment (inception to date)

(*) Exc. SBC

Major Strategic Accomplishments in 2023

A year of Solid Execution

Record Revenue growth; Narrowed cash burn; Solid balance sheet

FDA Clearance for reduction of Acne Scars
FDA Clearance for Precise Applicator
FDA Clearance for Sofwave Smart: IoT (wireless) Module
FDA Clearance for skin laxity on upper arm
FDA Clearance for Pure Impact EMS module
Regulatory Approval in Mexico
Opened a new subsidiary in the UK
Second US patent approval
Brand Awareness activities and practice adoption driving procedure growth >225K treatments;
- 6M YouTube views
- 770K Followers across all channels
- Engagement rate >4%

Q4 2023 and YTD Summary

We had a very successful year of growth and utilization
Our product and technology is well-recognized by top core plastic surgeons and dermatologist KOL's as disruptive and innovative
We are the emerging market leader in skin lifting and tightening
Our focus on the core customer had traction plus customers paid cash or self-financed
We have global strength: Our channel to market capability extends to 35+ markets
Our Brand Awareness with both B2B and B2C is accelerating
Our execution has been solid: scalable, lean infrastructure in-place to support continued high growth and profitability

Market Conditions and Trends

Globally, the core market remained solid; core doctors (dermatologists and plastic surgeons) demonstrate continued strong interest in new technology
Market slowdown is seen among non-core (general practitioner, spas) and new providers in Q4 due to the impact of inflation/high-interest rates on the global economy
Patients are seeking "natural-looking" results when seeking treatment
Procedure price point is driving non-invasive procedure growth in plastic surgery segment
GLP-1 Agonists (new weight loss injection) are generating aesthetic procedure demand:
- GLP-1 Agonists are everywhere and driving demand for tightening, lifting, laxity improvement and muscle toning

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

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

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

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

Addressing a \$2.3B Total Addressable Market (TAM): GLP-1 Agonists Accelerating Faster Growth of Market Positioned for Continued Growth

B2C and B2B Brand Awareness campaigns are focused to drive adoption and procedure growth

Driving procedure demand accelerates ROI for customer

Driving Procedure and System Growth through Brand Awareness 225,000 Treatments to date

Customer reinvest in digital marketing creating synergistic demand for Sofwave treatments

Sofwave "frictionless" Business Model:

-Customer Acquires Device

-Each treatment utilizes pulses of energy

-Digital Download of Treatment Pulses on demand offer significant advantage

Driving Procedure Growth through Increasing Utilization

Practice Development Specialist increase account coverage

Added PDM's in US; EMEA and APAC

Primary responsibility is to drive pulse sales revenue growth through driving utilization in the assigned territory.
- Increase effective territory penetration and coverage to drive sales and increase the provider's ability to attract and convert patients for Sofwave treatment
- Providing training, presentations and demonstrations to the customer on application and use of the company's products to help provider sell current patients on Sofwave
- Educating and supporting the customer with marketing strategies and digital tools to drive new patients to the provider for Sofwave treatment

| 11 Future of Beauty Award for Treatments

Best Game Changer Best Professional-Grade Treatments

Brand Awareness expands across Digital Channels 2023 Industry Awards

Safety in Beauty Innovation and Pioneering Award

Best Latest in Ultrasound

Best Non-Invasive Cellulite Treatment

Best in Skincare: Sofwave - Ultrasound Treatment

Driving Brand Awareness through Social Media Growth

800,000 followers and still growing!

20.3M Reached

1,623,734 video views

1.4M total impressions

8M video views

Novel "Got Lift" Brand Awareness Campaign Hitting a New Record 10M accounts reached since launch and content interactions have increased by +160%

Brand Awareness Rapidly Expanding in Media

200+ Placements ONLINE and Print Secured over 2 Billion impressions

1800/month Volume of Mentions Coming Soon!

NEW

Award

Sofwave Expands to 36 Countries

Sofwave Plus Pure Impact

Steady Product Newness Indications, applications and applicators

Treat loose skin on body: arms, hands, legs, knees

Acne scars

WIFI-Enabled Sofwave Smart

Cellulite New body platform

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

Pure Impact by Sofwave A Novel Component in our Body Platform Evolution

Sofwave Body Platform – SUPERB Ultrasound Based Solutions:

Skin Laxity: FDA clearance to treat skin laxity on upper arms

Sofwave plus Pure Impact : Next Generation Righten, Tone, Laxity and Lifting

The wireless, "End Point" , 4 electrode concept – Stimulation can be done on any electrode pair

Pure Impact Superiority

A sleek, easy-to-handle tabletop add-on module, enhancing space efficiency and maintaining a cost-effective investment.
Multiple synchronized electrodes to deliver more effective, faster and superior muscle strengthening and toning results.
Stimulate multiple muscle groups and body areas simultaneously.
Seamless 30-minute operation with a unique experience for both practitioners and patients.

Pure Impact – Muscle Toning and Shaping on the Sofwave Platform

Pre_Tx.1 Pre Tx.4

Financial Highlights

Revenue Growth

Annual Growth (\$'m)

| 25

Quarterly Revenue Growth

Quarterly Revenue Growth YOY (\$m)

2020 2021 2022 2023

2023 Geographical Split

North America EMEA APAC LATAM

New regulatory approvals in Taiwan as well as in Brazil and Mexico, increase APAC and Latin America portion of global revenues

First quarter of operating profit on Non-GAAP basis

GAAP Operating loss continues to narrow substantially and decreased by 95% YoY

S&M expenses continue to decrease as % of revenues to only 49%

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

Financial Highlights Q4 2023 – P&L (\$'K)

	For the 3 months ended December 31,		Stock Based Compensation		Excluding Stock Based Compensation
	2023	2022	2023	2022	2023	2022
Revenues	15,303	13,779	-	-	15,303	13,779
COGS	3,652	3,552	29	61	3,623	3,491
Gross Profit	11,651	10,227	29	61	11,680	10,288
	76.1%	74.2%			76.3%	74.7%

R&D expenses	2,788	3,422	126	392	2,662	3,030
S&M expenses	7,544	7,508	51	487	7,493	7,021
G&A expenses	1,482	2,459	204	211	1,278	2,248
Operating Profit (Loss)	(163)	(3,162)	410	1,151	247	(2,011)

GAAP and Non-GAAP Operating loss continues to narrow substantially and decreased by 54% and by 53% YoY

S&M expenses continue to decrease as % of revenues from 59% to 54%