Itamar MedicalApril 2018. Investors Presentation.

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Itamar Medical Mission

World Leader in Sleep Apnea Management

Solutions for the Cardiology Market

http://www.itamar-medical.com/

www.cardiosleepsolutions.com

4

Sleep Apnea - a Significant Comorbidity to Most Cardiac Disease

• Source: Seet & Chung, Anestsiology Clin 2010

83%

76%

72%

63%

59%

58%

57%

49%

45%

Drug resistant hypertension

Congestive heart failure

Diabetes typ 2

Stroke

Pacemakers

Arrhythmias

Coronary heart disease

Atrial fibrillation

Depression

7.2

5.1

29.0

6.4

3.5

14.4

16.2

3.5

40.0

OSA Comorbidity US patients M

e

5

25% of adults worldwide suffer from

sleep apnea*

About 80% in the US alone are

undiagnosed**

The diagnostic and treatment market is

valued at $ 3.5 billion***

The Market

50% of patients suffer from sleep

apnea; most of them (80% or more)

are not diagnosed

The Sleep MarketThe Cardiology Market

* Source: American Academy of Sleep Medicine, Peppard, et al., American Journal of Epidemiology (2013)

** Seet & Chung, Anestsiology Clin 2010

** *Fisher & Paykel, FY2016 Half Year results Presentation (Dx & Tx)

Source: Heart disease and stroke statistics—2015 update: a report from the American Heart Association

85 million cardiology patients in

the United States

Introduction into the Market of Sleep Disorders

Diagnosis in Cardiology

Treating Sleep Apnea Reduces Risk!

Sources:

1) Redline et al, The Sleep Heart Health Study. Am J Res and Crit Care Med 2010;

2) Gami et al, J Am Coll Cardiol 2013:

3) Young et al, J Sleep 2008;

4) Li et al, Europace 2014

Increased risk of stroke2x

Increased risk of recurrence of

atrial fibrillation following

ablation

57%

Risk of death from

cardiovascular disease5x

Risk of death from sudden

cardiac arrest2x

The Reason for the Market Dysfunction

Sleep SpecialistsCardiologists

• About 5,000 sleep specialists

• Financially motivated to use sleep labs

• 3-4 months waiting period

• Poor communication

• 33,000 cardiologists – 84M patients

• Limited awareness of impact

• Worried about referral to Sleep

• “Its not my problem” mentality

Cardiologists realize Sleep

Apnea impact their business

Sleep docs want to push to

PSG (sleep testing at hospital)

Cardiologists don’t want to refer to

Sleep Physician

WatchPAT - The Right Way To Diagnose Sleep

Disorders

A medical grade prescription device with easy of use design of a consumer

smart watch that allows home use with no need for professional assistance

The traditional way - a sleep lab

The American Academy of Sleep Medicine Officially Adopts

Itamar Medical’s technology for the Diagnosis of Sleep

Apnea

The leading medical organization in the United States for the

treatment of sleep disorders officially recognizes the PAT

technology in its guidelines for clinical practice

2017 - A Turning Point in the Cardiology MarketScience and Guidelines

Num. of Publications on Sleep in Major Cardiology

Journals

11

HRS Expert Consensus Statement 2017

2017 - A Turning Point in the Cardiology Market

Science and Guidelines

2017 - A Turning Point in the Cardiology Market

Science and Guidelines

2017 - A Turning Point in the Cardiology Market

Science and Guidelines

Strategy Implementation - a Unique Comprehensive

Solution that enables Diagnosis and Treatment

Itamar provides cardiologists with a comprehensive sleep solution, combining

diagnostics and therapy

Total Sleep Solution™

Screening Diagnosing Treatment Reporting

Eco System of Solutions

Screening Diagnosing Treatment Reporting

CPAP treatment

• Philips CPAP distribution

• Airway Mng MAD

• DMEs Networks

CloudPAT 3.0

Dashboard

Diagnosis with WatchPAT

• IDTF

• WatchPAT Direct

• Interpretation through

CouldPAT collaboration with

Sleep Physician

Systematic Screening with

Questionnaire

• Patient awareness kits

• Waiting room video

• Waiting room posters

• Informative brochure

Patient Compliance

Reporting

• Waiting list

• WatchPAT

• Test result

• CPAP

• Patient CPAP

compliance rate

• Sleep Apnea prevalence

rate

• A strategic distribution agreement with Philips

for CPAP products for the treatment of sleep

apnea disorders in cardiology patients

• Itamar has a successful distribution agreement

with Philips in Japan

• The agreement with Philips in the US adds to

the initial agreement with Devilbiss and

significantly increases the potential market

share

• Agreement with Airway Management – Oral

device

2017 – Market Maturity Turning Point

A Strategic Distribution Agreement

Cardiology Centered Marketing and Sales

AIM, which advises insurance companies, decides to

include Itamar's solution in most private insurance policies

2017 – Maturity Turning Point

Expansion of Insurance Indemnity

An Additional Business Model for the Sales of

Test Kits

Selling kits • Installation of multiple devices according to the number of

patients

• Fast access to customers – with no need for a preliminary

investment

• The kit’s price for customers includes a relative component

of the device

• List price per kit – $ 75

• A new product - WatchPAT Direct that includes a logistic

solution with a list price of $ 180

Sales of equipment and consumables • Initial sale requires a large investment on the client’s part

• A long sales process due to the hospital’s financial

prioritization and the large initial investment

• Low volume purchase of devices and diminishment of the

program

Making “Total Sleep Solution" available

to cardiologists

Changing the business model from the sale

of capital equipment to the sale of test kits

Cardiology centered marketing and sales

Adoption of PAT technology by the

Organization of Sleep Specialists

Maximizing Value at Market Maturity

Consistent Sales growth

Consistent Growth in Revenue

$2.9M

$3.6M

$4.0M$4.2M$4.3M

$5.1M$5.3M

$6.0M

-

$1.0M

$2.0M

$3.0M

$4.0M

$5.0M

$6.0M

$7.0M

Q1/17 Q2/17 Q3/17 Q4/17

US and Canada Revenue Total Revenue

A Continuing Decline in Operating Loss

$2.2M

$1.7M

$1.5M

$1.5M$1.4M

$1.0M

$0.7M

$0.5M

-

$0.5M

$1.0M

$1.5M

$2.0M

$2.5M

Q1.2016 Q2.2016 Q3.2016 Q4.2016 Q1.2017 Q2.2017 Q3.2017 Q4.2017

Cash Based Operating Loss Non-IFRS

Summary

A global leader with a unique technology - PAT™

Comprehensive diagnosis of sleep apnea using WatchPAT and a

comprehensive solution for cardiology patients

Broad Regulatory Approvals(FDA, CE, MHLW, broad IP basis and

insurance coverage)

Strong strategic relationships: Medtronic (co-marketing and a

shareholder), Philips (both way distribution arrangments) and Drive

DeVilbiss

A steady growth in WatchPAT sales of over 20%~ annually

An experienced management team and board members with proven

success

ThankYou!

WatchPAT Direct Program – A New Business Model

We reach the patients, confirm their availability and

schedule the home sleep test with the patient

A purified kit is prepared for each patient, with new

sensor

Kits are shipped to the patients according to the

scheduled test day

Patients receive call from Patient Support Center on

the test day for instructions of use. Also patients

can call Patient Support Center 24/7 for any kind of

help with the test

Patients have the test at comfort of their own bed.

The next day, patients ship the device back with

prepaid shipping labels.

Once the device is back, the study is uploaded to

CloudPAT and send it to referring physician

A customizable workflow to enlarge the home sleep test coverage