Q4 2024 Summary

March 2025

Sofwave - The Aesthetic Device Regeneration Company

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 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.

Dr. Shimon Eckhouse, Co-Founder and Chairman

Lou Scafuri, CEO

Assaf Korner, CFO

Presenters:

Investor meeting March 2025

2024 in Numbers

C

(*) Company estimation

\$59.7M Revenues +19% YoY Growth

\$23.3M Recurring Revenues +79% YoY Growth

Q4/24 \$18.3M Revenues +20% YoY Growth

76.1% GM Non-GAAP (2024)

Over 460,000(*) Treatments (inception to date)

Market Conditions and Trends Q4 2024

Global Uncertainties: Consumer confidence and capital purchases remain impacted by macroeconomic conditions

US Market Recovery: Positive signs initially emerged post-election, supporting business momentum

Growing adoption of GLP-1 Agonists driving demand for lifting, laxity and toning treatments

Market Landscape & Macro Trends Looking Ahead

Anticipate continue solid momentum despite uncertain

market conditions:

Geopolitical
High Interest rates
Currency Effects

Rising demand for energy-based volumization treatments as filler usage declines. Natural appearance is "in"

Q4 2024 Overview

Quarterly Performance – Key Highlights
Very Solid Quarter		Achieved significant strategic and financial milestones
Brand Awareness & Pulse Sales		Reached record-high levels
Products and ROI		Superior to competitive offerings and our value proposition is emerging as best in class
Rising Market Demand		Growth in tightening, lifting, and toning driven by the prevalence of GLP-1 agonists
Our execution has been solid		Scalable, lean infrastructure in-place to support continued high growth and profitability

2024 Major Accomplishments and Milestones

A year of Growth and Solid Execution

Financial & Revenue Growth

Significant revenue growth with a strong cash position
Record pulse sales and increased high-margin recurring revenue

Addition of top-tier global marketing & sales talent

• Expanded Direct Distribution Platform – Now includes PDMs

Surging Brand Awareness & Market Presence

1M+ Social Media Followers
8M+ YouTube Views
460,000+ Treatments Conducted

Industry & Regulatory Milestones

Pure Impact 510(k) Clearance for arm toning
LiftHD Applicator 510(k) Clearance for cellulite treatment

Innovation & IP Growth

• New Patents Awarded for Sofwave Body

Foundational investment in clinical studies led to successful broad expansion of FDA clearances to 9
Innovators and KOLs as early adopters (1) Peer to peer influencers help sell (2) Core Physicians influence overall market acceptance
Focused efforts to grow digital presence and brand awareness driving procedure growth and pulse sales
Direct sales team in US to increase market coverage. (1) Added Practice Development Specialists to drive utilization and support user's best practices (2) Continued expansion in global markets

Go to Market Strategy has Built a Solid Foundation

Positioned for Continued Growth and Profitability

Today's Market Environment

Only Disruptive Products with Superior ROI Standout

Patients seek the latest and most effective treatments, especially in tough times.
Clinics need superior aesthetic devices to stay competitive.
Patients are seeking a natural look and filler utilization is decreasing.
Demand for skin tightening and muscle toning is rising due to new weight loss drugs.
New or underfunded providers may offer cheaper, lower-quality options.

Providers compete for patients:

Preferred treatments are safe, easy to delegate, provide consistent outcomes and are profitable

Providers need strong brand awareness to manage rising costs.
Attracting and retaining patients is becoming more expensive.
Generic treatments like microneedling and RF procedures are heavily discounted due to market saturation

Why Sofwave is Taking Market Share

Competitive Advantage

Sofwave Value Proposition: Proven Outcomes, Provider ROI, Patient Satisfaction

Patient-Centric Innovation: Natural results, inclusivity for all skin types, and aligned with emerging trends (e.g., weight-loss drug implications)

Strong ROI for Providers: High utilization rates, minimal downtime, and easy delegation

Superior Clinical Outcomes: Backed by patient satisfaction and efficacy data

Addressing the 2025 Growth Challenge: 3 Strategic Pillars of Scaling Phase

From Early Adopters to the Early Majority (Mainstream)

Scaling Phase:

Momentum is advancing from visionary buyers (early adopters) to building confidence among pragmatic providers through proven ROI and clinical validation

Market Expansion

Regulatory approvals, especially in key growth markets like Japan and China

Provider Success

Demonstrate clear ROI, scalability, and ease of integration into practices

Demand Generation

Increase patient awareness through accelerated social media and digital efforts

Solid Fundamentals: Superior Business Model and Patient Outcomes

Focus on Provider Success enhances Recurring Revenue

Brand Awareness Efforts to B2C and B2B Driving Procedure Demand and Console Sales

❸ Increased Awareness creates patient demand and drive utilization

❹ Positive patient outcomes retains patients and leads to patient loyalty

❶ Created with win/win partnership with our customers

❷ Sofwave reinvests significant % of every revenue \$ to create brand awareness and drive success

PROVEN TECHNOLOGY

15+ CLINICAL STUDIES 600+ STUDIED SUBJECTS 460K+ TREATMENTS PERFORMED

Superior ROI than Competition

Sofwave ROI Calculator Disclaimer

The ROI calculations presented herein are derived from Sofwave Medical Ltd.'s ROI Calculator tool and are based on actual performance data from existing Sofwave customers. These data points should not be interpreted as guarantees of identical outcomes for all customers or investors. Various factors, including clinic location, customer demographics, marketing strategies, and operational execution, can influence actual returns on investment. This information does not constitute an offer to sell or a solicitation of an offer to buy Sofwave securities.

SOFWAVE PEAK ADVANTAGE PARTNERSHIP

Business Analytics & Benchmarking Tools Expert Service Support with Focus on Uptime

Practice Development & Marketing Support

PulsePal Provider Incentive Plan

Wave Pulse Promotions: Volume-Based Pulse Discounts

MyWave Patient Loyalty Program

Annual Peak Advantage Summit Meeting

Clinical & Technical Training

Accelerated Digital Presence sets stage for Market Success

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Rapidly Expanding Brand Awareness – "The Kardashian Effect" Unpaid Endorsement

Sofwave Leadership Dr. Shimon Eckhouse

Sofwave Symposium, IMCAS, Paris 2025

IMCAS Paris, held in January 2025, welcomed over 20,000 participants, making it the largest aesthetic medicine conference and exhibition to date.
Sofwave had a strong presence at IMCAS, including a dedicated, company-sponsored symposium focused on two major themes:
- Sofwave: Leading the Way in Device-Based Skin Regeneration Technology
- The Impact of GLP-1 on Aesthetic Medicine
The symposium featured world-renowned key opinion leaders (KOLs) in aesthetic medicine, offering valuable insights and expertise on these cutting-edge topics.

Jean Carruthers MD the Inventor of Botox Aesthetic Application

Kathy Fields MD, Founder of Rodan & Fields acquired and sold back by Estee Lauder, active SF dermatologist, last valuation of the RF brand >\$4B

Ava Shamban , multiple Medspas in LA and Beverly Hills, resident dermatologist in the Extreme Makeover TV show

Jessica Weiser MD, Owner and Medical Director of Weiser Skin MD, Assistant clinical professor of dermatology, Columbia U

-

Munir Somji MD

Greg Mueller MD, World renowned plastic surgeon, Beverly Hills Ca

Sofwave Leadership

Pioneering Skin Regeneration Technology Sofwave is at the forefront of skin regeneration with its cutting-edge SUPERB technology, setting new standards in non-invasive aesthetic treatments.
Sofwave is revolutionizing Post-Weight Loss Skin Tightening and Lifting and Muscle Toning with its EMS Pure Impact and SUPERB Ultrasound innovative technologies helping individuals regain strength and skin tightening and lifting after weight loss, addressing a key market demand.
Driving Growth and Value Creation By leading in both skin regeneration and muscle toning, Sofwave is positioned for significant expansion, enhancing its market presence and long-term value.

Financial Highlights

Continued strong YoY revenue increase with 20% in Q4.24 vs. Q4.23 and 19% growth in 2024 vs. 2023
Q4/24 Pulse revenues increased to \$7.2M (63% YoY)
2024 pulse revenues increased to \$23.3M (79% YoY)

Q4 Revenue Growth (\$'m)

Annual Growth (\$'m)

Revenue Growth

Quarterly Revenue Growth

Quarterly Revenue Growth YoY (\$m)

2024 Geographical Split

Non-IFRS Quarterly Operating Loss/Income (\$M)

Non-IFRS excluding Stock Based Compensation and onetime litigation expenses

GM% continues to improve together with the growth in pulse sales

G&A expenses for Q4/24 include \$0.9M onetime legal expenses related to trademark litigation in the US

Operating Income exc. trademark litigation expenses increased by 505% on a Non-IFRS basis to \$1.5M of 8.1% of revenues

Financial Highlights Q4 2024 – P&L (\$'K)

	For the 3 months ended December 31,			Stock Based Compensation	Excluding Stock Based Compensation
	2024	2023	2024	2023	2024	2023
Revenues	18,318	15,303			18,318	15,303
COGS	4,206	3,651	11	29	4,195	3,622
Gross Profit	14,112	11,652	11	29	14,123	11,681
	77.0%	76.1%			77.1%	76.3%

R&D expenses	2,741	2,788	319	126	2,422	2,662
S&M expenses	8,789	7,544	136	51	8,653	7,493
G&A expenses	2,683	1,482	236	204	2,447	1,278
Operating (Loss) Income	(101)	(162)	702	410	601	248

"> mpensation
2023
15,303
3,622
11,681
76.3%

2,662
7,493
1,278
248