Syneron Medical Ltd. Investor Presentation - Jefferies 0800 5 Syneron.pdf · 1997 2013 Invasive...

Syneron Medical Ltd.

Investor Presentation

November 2014

Safe Harbor For Forward Looking StatementsAny statements contained in this presentation regarding future expectations, beliefs, goals, plans or

prospects constitute forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. Further, any statements that are not statements of historical fact

(including statements containing "believes," "anticipates," "plans," "expects," "may," "will," "would,"

"intends," "estimates" and similar expressions) should also be considered to be forward-looking

statements. There are a number of important risks and factors that could cause actual results or

events to differ materially from those indicated by forward-looking statements in this presentation,

including the risks set forth in Syneron Medical Ltd.'s most recent Annual Report on Form 20-F, and

the other factors described in the filings that Syneron Medical Ltd. makes with the SEC from time to

time. If one or more of these risks or factors materialize, or if any underlying assumptions prove

incorrect, Syneron Medical Ltd.'s actual results, performance or achievements may vary materially

from any future results, performance or achievements expressed or implied by the forward-looking

statements in this presentation.

Non-GAAP Financial Measures

The following presentation includes certain "non-GAAP financial measures" as defined in

Regulation G under the Securities Exchange Act of 1934. A schedule is included in the company’s

Q3 2014 press release, which reconciles our results as reported under General Accepted

Accounting Principles and the non-GAAP financial measures included in the following presentation.

2

Syneron at a Glance

• A global leader in medical

aesthetic devices

• Growing aesthetic market and

consumer demand for energy

based non-invasive procedures

• Largest worldwide presence in

sales, distribution, service

network and installed based

3

1. Superior technology for non invasive Fat Destruction

(UltraShape) and Body Shaping (VelaShape – 7,000

units sold WW)

2. Focus on high margin recurring revenues

- UltraShape’s new business model for NA

- Grow recurring revenue share from 30% in 2013

to 50% in 2017

3. Significant expansion and optimization of NA sales

force, focused on selling high margin products

4. PicoWay breakthrough technology and immediate

availability in USA, Europe and key countries in Asia

5. Global Joint Venture with Unilever for the consumer

market

6. CoolTouch leading products for lucrative leg vein

market with recurring revenue strategy

7. elure™ skin lightening opportunity

1 Based on US publicly traded companies listed here (CYNO,

CUTR, ZLTQ, LMNS); Professional Aesthetic Device Sector

2 Pro-forma, excluding Syneron Beauty; trailing twelve month

revenue

3 Based on FY2013 results

4 September 30, 2014 Balance Sheet

~$242M Revenue² (30%

Recurring³)

~$100M in Cash4; No Debt

~30,000 Active Customers

28% Worldwide Market

Share¹

Drivers of Profitable Growth

4

Why is Non-Invasive Aesthetic Medicine Growing?

The doctor can take a patient from

To thisThis

WITH NO SURGERY, MINIMAL DOWN-TIME

AND A HIGH DEGREE OF PREDICTABILITY

Procedure performed with Syneron’s ePrime™ device

Photos: Macrene Alexiades, MD

5

Why is Non-Invasive Aesthetic Medicine Growing?

The doctor can take a patient from

To thisThis

WITH NO SURGERY, MINIMAL DOWN-TIME

AND A HIGH DEGREE OF PREDICTABILITY

Procedure performed with Syneron’s UltraShape™ device

Photos: Wendy Tink, MD

6

0.0

4.0

8.0

12.0

6.0

10.0

2.0.939M .741M

1.88M

7.6M

1997 2013

Non- Invasive ProceduresInvasive Procedures

0.0

4.0

8.0

12.0

(Procedures in millions)

6.0

10.0

2.0

1997 2013

CAGR= 15.6%

Source: The American Society for Aesthetic Plastic Surgery 2014

Non-invasive procedures account for 84% and majority of growth

Strong Shift Toward Non-Invasive Procedures

(Procedures in millions)

CAGR= 4.4%

7

Fat Destruction and Body Shaping

Market Opportunity

8

Potential Market for Body Shaping Procedures

¹ 2013 American Heart Association, Inc..

154.7M Americans over the age of 20 are overweight or obese (1)

KEY (Based on BMI(1)) | BMI of 30 or above is obese | BMI of 25-30 is overweight | BMI of 18.5-25 is normalweight | BMI of 18.5 or lower is underweight

Target

Population

33.5%

Obese

32.6%

Overweight

33.8%

Normal or Underweight

Total Potential US Patient Market Approximately 100M Patients

9

Potential Market for Fat Destruction Procedures

32.6%

Overweight

33.8%

Normal or Underweight

Total Addressable Market in the US: 19.5M Patients 2

In a survey of 1,045 women in NA 1

56%indicated interest in non-invasive fat destruction

procedures

1 Syneron proprietary consumer research, 2012

22013 Census estimates the US population 20 years and older to be 233M;

and that 34.9% of the adult population has personal income of $35,000 or above. 10

Women Are Interested in Treating

Multiple Body Areas *

49% of woman are not satisfied with their back/bra fat

51% of women are not satisfied with

their thighs

58% of women are not satisfied with

their flanks

54% of women are not satisfied with their buttocks

72% of women are not satisfied with their stomach

A proprietary Syneron research study of 1045 women, aged 25 and above in NA

concluded that:

Source: Syneron proprietary consumer survey 2012.

*In the US, UltraShape is currently indicated for treatment

of the abdomen. 11

Physician Qualitative Research Reveals Importance of

Pain-Free Advantage

• Research Takeaway

• Pain Free represents advancement over existing

technologies + opportunity to tap into growth of body

shaping category.

• Supporting Quotes

• “Over 75% of patients come in to my office and

immediately ask “How much is it going to hurt?" "100% of

patients ask about downtime."

• “Pain-free with no downtime, it’s effective and totally

believable.”

• “Pain-free permanent fat removal…BOTTOM LINE!”

12

44% of surveyed aesthetic clinics indicated that they

plan to buy body shaping equipment in 2014 (1)

Body Shaping is one of the most profitable businesses for

aesthetic clinics, second only to toxins & fillers

Hair removal Skinrejuvenation

VeinReduction

Tattooremoval

Pigmentedlesions

Skintightening

Body shaping

44%Planned Purchasing of New Equipment in 2014

(1) Medical Insight Inc., The Annual Aesthetic Practice Survey January 2014

13

Market Learnings

• More than half of the women (56%) are interested in non-invasive fat destruction

• A pain free procedure is the number 1 consideration for patients

• Almost three quarters (72%) of the women are unhappy with their abdomen and want to remove fat from their stomach

• Almost half of the doctors (44%) are looking to buy non-invasive body shaping equipment

• Syneron is ideally positioned to serve these patient and doctor market needs

14

Holistic Approach to Body Shaping Treatments: Fat Cell Destruction,

Skin Tightening and Cellulite

Targeting

connective tissueTargeting and

destroying fat

Broad Body Shaping Portfolio

15

UltraShape® Pulsed Focused Ultrasound (PFU)

Focused ultrasound energy

Mechanical acoustic effects

breaks fat cell membranes

Immediate and permanent fat

cell destruction

Comfortable – No Pain

Selective: Skin, vessels,

nerves and connective tissue

remain unharmed

16

Control Immediately post single tx

Superior Technology for Non Invasive Fat Destruction

Immediate Fat Cell Destruction!

UltraShape Technology, In-Vivo Porcine Model: Acute Micro Effects

Brown SA, Greenbaum L, Shtukmaster S, Zadok Y, Ben-Ezra S, Kushkuley L. Characterization of nonthermal focused ultrasound for noninvasive

selective fat cell disruption (lysis): technical and preclinical assessment. Plast Reconstr Surg. 2009 Jul;124(1):92-101

17

X 40X 40




Superior Technology for Non Invasive Fat Destruction

Immediate Fat Cell Destruction!

Control Immediately post single tx

18

Intact

Nerves

X100

Intact

Blood

Vessel

Fat Cell

Destruction

Highly Selective!




Superior Technology for Non Invasive, Immediate Fat Destruction

19

Treated Area: Abdomen

Fat Layer Thickness: 4.9 cmTreated Area: Abdomen

Fat Layer Thickness: 3.8 cm

Fat Thickness Reduction: 1.1 cm Circumference Reduction: 4.5 cm

Leal H. et al, Procedures in Cosmetic Dermatology (book); Focused Ultrasound for Fat Reduction: Ultralipotripsy. pp 107-121 (2010)

UltraShape MRI Measurement of Fat Thickness

Baseline Post 3 Tx


Exceptional Efficacy!

20

1Published in peer-reviewed journal 2Presented in scientific conference 3Data on file

13 published clinical studies with more than 900 subjects treated!

InvestigatorPublication

Year

Patient

Population

Avg. Circumference

ReductionResults

Teitelbaum S. et al1 US, UK, Japan 2007 164 2.0 cm (1 Tx) 82% > 0.5 cm circumference reduction

Leal H.2,3 Monterrey, Mexico 2009 24 3.0-3.4 cm (1 combo Tx)96% > 1.5 cm circumference reduction

100% patient satisfaction

Moreno-Moraga J1 Madrid, Spain 2007 30 3.95 cm (3 tx) 100% measurable and visual improvement

Leal H.2,3 Monterrey, Mexico 2008 36 5.0 cm (3 tx)100% measureable reduction


Ad El D.2,3 Beilinson Med, Israel 2008 26 3.96 cm (3 tx) 90% > 2.0 cm circumference reduction

Mulholland S.2 Toronto, Canada 2008 21 3.48 cm (3 tx) 86% patient satisfaction

Inglefield C.2 London, UK 2007 1486.3 cm (3 tx)


de Almeida G.2 Sao Paulo, Brazil 2007 205.4 cm (3 tx) 100% measurable reduction


Benchetrit A.2 Montreal, Canada 2010 1094.5 cm (3 tx) 96% measurable reduction


Niwa A. 1 São Paulo, Brazil. 2010 120 4.95 cm (3 tx)92% measurable reduction

94% reported comfortable treatment

Ascher B.1 Paris, France 2010 25 3.58 cm (3 tx) 90% reported no pain

S.-L. Chang1,2 Taiwan 2013 32 3.91 cm (3 tx)21.4% and 25% reduction in fat thickness

measured by MRI

Weiss, Coleman, Kenkel, Ad-El3 US, Israel 2013 32 3.34cm (3 tx) 100% reported very low pain levels


Average circumference reduction ranges from 3.3 to 6.3 cm (one to three pant

size reduction)

Average response rate ranged from 83% to 100%

21

The UltraShape V3.1 Platform

Tracking & Guidance Camera

Tracking & Guidance Monitor

• Computer Guided

treatment

• Intuitive graphic

guidance monitor

• Fast learning curve

• Treatment can be

delegated to staff

• Fast, full abdomen

in less than 1 hour

• Supports applicator

and software

upgrades

22

Investor Meeting – UltraShape Update (Sep. 2014)

Panel of 3 leading Physicians− Dr. Bruce Katz – New York

“In terms of the outcome I just treated a patient two weeks ago after one treatment alone she saw a two inch reduction in her

abdomen, so you [have] see[n] results a lot faster with this technology than perhaps with the other two CoolSculpting and

Liposonix which can take two months to see the eventual outcome…. and you really can’t tell anything was done, you look at

person’s body after and you can’t see, bruising, swelling. I mean it’s really a very rapid recovery….Its a great choice for our

practice.”

− Dr. David Amron – Beverly Hills “Why UltraShape? I think it really is the most sophisticated specific technology for fat reduction non-invasive that is out

there….This is so sophisticated and so specific that it really is a next generation…As you were made aware there is no shelving

the demarcation like you can see with CoolSculpting, there is no pain and we talked about that absolute advantage, it’s very safe -

an important thing. And there is no visible sign of treatment.”

− Arie Benchetrit - Canada“We treated over 800 patients so that’s over 2000 treatment cycles over the last seven years. The treatments are very well

tolerated. We’ve never had a patient dropout of a treatment cycle and that’s very important if you speak to doctor like Dr. Amron or

others who have had Liposonix or some of the other devices patients’ dropout. They can’t tolerate the pain or side effects and

often don’t finish their treatment cycle …That has never happened in seven years with the UltraShape.”

“We decided to undergo a procedure ourselves.

Following our experience we can objectively

concur with the notion that discomfort would not

be a deterrent for an UltraShape procedure. It

simply felt as if we were receiving a fetal

ultrasound.”

- Zack Ajzenman, Griffin Securities

• Over 60 investors and sell side analysts participated

• 3 active treatment rooms with over 15 investors and analysts

undergoing on-site treatment demonstrations

• Participants provided positive feedback on UltraShape

experience and opportunity

23

UltraShape® Three Treatment Results

Reduction -4.7 cm upper, -5.4 cm

lower abdomen Weight change -2.2Kg

Pre-Treatment 4 Weeks Post

Treatment

Upper/ Lower Abdomen

Courtesy of Dr. Arie Benchetrit, Montreal, Quebec

Reduction -5 cmWeight change -2.2Kg

Pre-Treatment 4 Weeks Post Treatment

2424

Courtesy of Dr. Wendy Tink, Vive Clinic – Calgary, Alberta

Reduction -14 cmsWeight change -3.2Kg

Pre-Treatment 2 Months Post Treatment

Reduction -10 cmsWeight change -3.2Kg

Pre-Treatment 2 weeks Post Treatment

25

UltraShape® Three Treatment Results

Flanks

25

New FDA cleared: U-Sculpt Transducer

• Compact, ergonomic design

• Ideally suited to treat any

size and shape of fat pocket

on the body

• Interchangeable, during

procedure, with large

applicator

26

Control Regular protocol

Immediate Fat Destruction

VDF Multi-Focus

In-vivo Porcine Model: Acute Macro Effects

More Fat Volume Destruction

Per Pulse

New FDA cleared: 25% power increase and VDF protocol

27

UltraShape Non-Invasive Fat Destruction

• Effective treatment - 1 to 3 pant size reductions

• Comfortable treatment – No pain, Excellent Safety

Record

• Results seen as early as 2 weeks post treatment

• Flexible treatment - Any shape and size of fat

pocket can be treated with the VDF and U-Sculpt

applicators

• Quick treatment enables enhanced patient

throughput – Less than 1 hour needed for full

abdominal treatment

28

High Margin Recurring Revenue Business Model

UltraShape GM Over 70%

Revenues from Capital Equipment

System List Price $99,000

• Consumables will be sold in the form of

Focal Treatment Zones (FTZ)

• Average abdominal treatment requires

10 FTZ’s

• Practice purchases FTZ’s based on

patient volumes

• Cost of FTZs represents 25%-33% of

treatment revenue charged by physician

Revenues from Consumables

FTZ List Price: $25

Shift to a Consumables Business Model

29

UltraShape® NA Launch Plan

• FDA 510(k) clearance received April 2014

• Controlled market launch with KOLs in Q2-Q3 2014; Full launch in Q4 2014

• Creating Bifurcated Body Shaping Business Group (team of 50-60 reps by end of 2015)

Territory Managers For

Capital Sales

• Initial Focus on Installations

• Expansion of installed base

• Ensure healthy pipeline

Practice Development

Partners (PDP’s)

• Focus on educating practices

• Provide marketing support

• Drive utilization of Focal

Treatment Zones (FTZs)

• Targeting 7,000 VelaShape WW installed base and users of competitive systems

• Potential for bundling with VelaShape

30

UltraShape® Practice Value Proposition

• New technology provides clinic differentiation – attracts new patients

• Cross selling opportunities with other offerings – attracts new patients

• Practice Development Partner (PDP) marketing and clinical support for practice

• Computer guided treatment

- Easy to learn & use

- High staff acceptance

• 10 new patients per month

(20 treatments per month) =

$220,000 - $250,000 in annual revenue

31

UltraShape® 2015 Target Customers

• Differentiate practice

• Painless; low side effect profile

• New marketing program

• Offer latest Immediate Fat Destruction technology

• Alternative for “pain-sensitive” patients

• Correcting unevenness from Lipo/other devices

• Can treat any size and shape of fat pocket

• Differentiate practice

• Complementary to VelaShape

• New marketing program

32

UltraShape®: A Game Changer for Syneron Candela

• Planned 2015 revenue: $20M

• $65M-$100M in UltraShape revenues within 3 years

• Above 70% gross margin on UltraShape business

• 50% capital equipment and 50% recurrent revenues within 3 years

• Achieving a long term win-win partnership with our customers

33

Holistic Approach to Body Shaping Treatments: Fat Cell Destruction,

Skin Tightening and Cellulite

Targeting

connective tissueTargeting and

destroying fat

Broad Body Shaping Portfolio

34

VelaShape III

• FDA cleared for the treatment of

cellulite and circumferential

reduction (abdomen and thighs)

• Increased RF Power by a factor

of 2.5 to 150W

• Single treatment with an

average abdominal

circumferential reduction of

2.5cm and 100% patient

responders

Cellulite, Skin Laxity, Circumferential Reduction

35

After

Treatment of Skin Laxity with VelaShape Technology

Photos: Regine Bousquet, MD

Before

36

0

0.8

1.8

2.6

0

0.5

1

1.5

2

2.5

3

3.5

Baseline 4 weeks 7 weeks 10 weeks

[cm

]

Mean abdomen circumference reduction

VelaShape III - Single Treatment Protocol

42 patient trial

0%

36%

71%

100%

0%

36%

67%

100%

0%

27%

55%

80%

0%

20%

40%

60%

80%

100%

Baseline 4 weeks 7 weeks 10 weeks

[%]

1 cm 1.5 cm 2 cm

Average Abdominal Circumference

Reduction % of Patients with CR of at least 1cm, 1.5cm and 2cm

37

Body Shaping as a Growth Driver - Leveraging Our Strengths

• Installed base of close to 15,000 systems in NA out of which 2,000

are body shaping systems

• Superior technology platforms

• Ability to offer comprehensive body shaping solutions for all major

indications (Non-Invasive Fat Destruction, Skin Laxity, Cellulite,

Circumference)

• Cross selling opportunities with other devices

38

Expansion and Optimization of NA Sales Org

• 6 additional reps focused on CoolTouch products

• Expanded NA sales force from 35 to 65 over the last 12 months: better

product and territory coverage

• Focus on selling high margin products

• Building an additional dedicated Body Shaping sales team of 50-60 by

the end of 2015:

25-30 capital equipment sales reps and 25-30 consumable PDP’s

• 15 PDP’s on board by 4Q14

• 15 sales reps to the Body Division in January 2015, comprised of new hires and some from

existing NA sales team

Optimization of sales coverage will add focus on both core and non-core markets

39

Dual wavelength PicoWay - Shortest Picosecond Pulse,

Highest Peak Power

40

Dual wavelength picosecond laser to treat tattoos of all types and colors, and

pigmented lesions on any skin type

PicoWay – Shortest Picosecond Pulse, Highest Peak Power

• FDA Clearance in late October for removal of tattoos of all

colors • Immediate U.S. launch in November 2014

• Investing in sales & marketing to support launch

• US potential market for tattoo removal procedures: $11.4B - $22.7B1

• Received CE Mark in July for removal of tattoos of all colors and

pigmented lesions• Featured at medical meetings in late September in Europe

• Full launch in late October 2014 at EADV meeting in Europe

• $260K list price and 15-20% higher gross margin on top of

current gross margin levels

• Growth driver starting November 2014 with at least $1M

contribution to revenues in Q4

Candela global installed

base of ~1,400 dedicated

tattoo removal & pigmented

lesion lasers and >11,000

platforms that include

pigmented lesion indications

¹ 2013 Census; 21% of adults in America have at least one tattoo; The Harris Poll, 2012 Harris Interactive; 14%

of those with a tattoo regret their tattoo; The Harris Poll, 2012 Harris Interactive; Estimated average tattoo

removal procedure fee is $400; 4-8 treatments required

41

• Treat widest range of tattoos & pigmented lesions 2 wavelengths + ultra-short 450 picosecond pulses enable treatment of more patients than single wavelength picosecond units

• Compared to other picosecond or Q-switched lasers PicoWay’s ultra-short pulses optimizes the photoacousticpressure on the target better than any device, shattering the ink with the least amount of heat transferred into the skin

• Pulse-on-demandLower cost of ownership than other picosecond laser systems which run continuously throughout the day

• Compact system Fast and easy to use

• Upgradability Additional applications and upgrades

PicoWay – Shortest Picosecond Pulse, Highest Peak Power

42

PicoWay Treatment Results

Tattoo Removal (U.S. & International) and Pigmented Lesion (International Only)

43

Unilever Syneron Joint Venture

Structure Strategic Rationale

• Build on investments in Syneron

Beauty to create focused home beauty

device business with enhanced growth

and profitability profile

• Unilever participation provides

additional validation of Syneron

Beauty and robust home-use beauty

device market

• Eliminate impact of Syneron Beauty

on consolidated financials and cash

flow while retaining upside potential

• Allows Syneron Medical to focus on

the significant opportunities in PAD

business

• Improves core business margins and

profitability

• Agreement closed December 8, 2013

• Global joint venture with Unilever to

include:

- Syneron Beauty

- Iluminage (Unilever subsidiary)

- $25 million Unilever investment

• Ownership: Unilever 51% / Syneron

49% of ordinary shares

• Management / Board of Directors

- Shimon Eckhouse – Chairman

- Syneron 2 seats / Unilever 2 seats

/ 1 independent director

• Valuation based on the Fair Value of the

JV, changes to be shown in GAAP EPS

44

Addresses growing skin lightening

market, especially in Asia

• Signed a distribution agreement in Korea, start

shipping in Q4 2014

• Signed a distribution agreement in China –

commercial in Q1 2015

• Enhanced current distributor relationship in Japan –

commercial in 2015

Additional Potential Business Opportunities

elure™ opportunity

Strengthens recurring revenue strategy;

Entry into significant new markets

• Integration on track

• FDA clearance received October 31, 2014 for our OEM -

30-Watt Holmium Laser for breaking of kidney stones and

soft tissue urological work

• Addressing the lucrative vein treatment market with high

recurring revenue component

• 6 dedicated sales reps in U.S. are on board

CoolTouch™ opportunity

45

Financial Highlights (Non-GAAP)$ Thousands (except per margins)

Total 2013 (*) Q1 14 Q2 14 Q3 14

Revenues 232,129 56,813 64,618 60,257

YOY change, % (3.8%) 2.0% 6.1% 8.3%

Cost Of Revenue 105,187 26,398 29,609 26,775

Gross Profit 126,943 30,415 35,009 33,482

GM % 54.7% 53.5% 54.2% 55.6%

Total OPEX 115,170 28,524 31,851 30,858

EBIT 11,771 1,891 3,158 2,624

Operating Margin 5.1% 3.3% 4.9% 4.4%

Financial Income (expenses), net 222 164 228 (764)

Taxes on Income (tax benefit) (1,431) 727 900 920

Net Loss attributable to non -

controlling interest 100 - - -

Net Income 13,524 1,328 2,486 940

EPS ($) 0.37 0.04 0.07 0.03

(*) Without SB

46

Third Quarter Highlights*

*The third quarter 2014 year-over-year comparisons to the third quarter 2013 are on a pro-forma basis, excluding Syneron Beauty

from the third quarter 2013 results following its de-consolidation as of December 8, 2013

Generated $4.9 million in cash flow from operations

36.9 38.5

18.721.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Q3-2013 Q3-2014

International North America

Y/Y Revenues ($M)

55.760.3

8.3%

16.3%

4.2%

16.4

18.1

15.0

16.0

17.0

18.0

19.0

20.0

Q3-2013 Q3-2014

Recurring Revenue ($M)

11%

36.1%

63.9%

Revenue by Geography

North America International

30.0%

70.0%

Revenue Mix

Recurring Product

47

Select Financial (Non-GAAP) Items*

*The third quarter 2014 year-over-year comparisons to the third quarter 2013 are on a pro-forma basis, excluding Syneron Beauty

from the third quarter 2013 results following its de-consolidation as of December 8, 2013

• Gross margin of 55.6% vs. 54.5% in

3Q13

• Increase driven by favorable geographic

and product mix

• Operating margin of 4.4% vs. 5.1% in

3Q13

• Decrease driven by higher S&M expenses

related to expansion of NA sales force and

dedicated body shaping team

• Decrease also due to CoolTouch integration

and expenses

• EPS of $0.03 vs. $0.07 in 3Q13

• EPS decreased by $0.02 due to changes in

foreign currency exchange rates compared

to the U.S. dollar.

• * 3Q14 EPS would have been $0.05

excluding changes in foreign exchange

54.5%54.2%

55.6%

53.0%

54.0%

55.0%

56.0%

Q3-2013 Q2-2014 Q3-2014

Gross Margin %

0.07 0.07

0.03

0.00

0.02

0.04

0.06

0.08

Q3-2013 Q2-2014 Q3-2014

EPS ($)

5.1%4.9%

4.4%

$15,000

$17,000

$19,000

$21,000

4.0%

4.5%

5.0%

5.5%

Q3-2013 Q2-2014 Q3-2014

Operating Margin %

Operating Margin % Sales & Marketing Expense

0.05*

48

Select Balance Sheet Items

• $100.4 million in cash and cash

equivalents at September 30, 2014

• Generated $4.9 million in cash from

operations

• DSO of 78 vs. 84 days in 3Q13 and

81 days in 2Q14

92.6

96.4

100.4

90

92

94

96

98

100

102

104

Q1-2014 Q2-2014 Q3-2014

Cash Position ($M)

-6.5

-4.0-4.9

3.74.9

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014

Cash Flow from Operations ($M)

-2.8-1.7

-4.9

3.74.9

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014

Cash Flow from Operations ($M) w/o SB

49

Positioned for Growth

• A global leader in the medical aesthetics device

sector with 28%¹ market share

• Largest global footprint and installed base

• Financial strength

1 – Based on US publicly traded companies listed here (CYNO, CUTR, ZLTQ, LMNS); Professional Aesthetic Device Sector

Profitable growth drivers:

- Focus on non-invasive Fat Destruction and Body Shaping markets

- UltraShape NA launch

- New business model for recurring revenue

- Expansion and optimization of NA sales force, focused on selling high margin products

- PicoWay launch

- Joint Venture with Unilever

- CoolTouch investment for growth

- Elure skin lightening opportunity

• 2015 objectives:

− Double-digit revenue growth

− Continued investment in sales & marketing to drive

growth for key products

− Operating margin increase

50

Non-GAAP pro-forma results (excluding SB) included in this

presentation

APPENDIX

51

Pro-Forma Results

September 30, 2014 September 30, 2013 September 30, 2014 September 30, 2013

Consolidated Non

GAAP

Pro Forma Basis, Excluding

Syneron Beauty

Consolidated Non

GAAP

Pro Forma Basis,

Excluding Syneron

Beauty

Revenues 60,257$ 55,657$ 181,688$ 172,250$

Cost of revenues 26,775 25,331 82,782 78,268

Gross profit 33,482 30,326 98,906 93,982

- -

Operating Income 2,624 2,859 7,673 8,629

- -

940$ 2,460$ 4,754$ 7,719$ Income attributable to Syneron shareholders

For the three-months ended For the nine-months ended

Syneron Medical Ltd.

Unaudited Non-GAAP Condensed Consolidated Statements of Income

(in thousands, except per share data)

Net Income attributable to Syneron shareholders 0.03 0.07 0.10 0.22

Net Income attributable to Syneron shareholders 0.03 0.07 0.10 0.21

Weighted average shares outstanding:

Basic 36,768 36,064 36,637 35,826

Diluted 37,228 36,196 37,277 36,058

Income per share:

Basic

Diluted

52

Thank you!

Syneron Medical Ltd. Investor Presentation - Jefferies 0800 5 Syneron.pdf · 1997 2013 Invasive...

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Transcript of Syneron Medical Ltd. Investor Presentation - Jefferies 0800 5 Syneron.pdf · 1997 2013 Invasive...