Investor Event S E P T E M B E R 1 5,

Transcription

1 Investor Event S E P T E M B E R 1 5,

2 Today s Presenters 10:00 10:45 a.m. 10:45 11:00 a.m. 11:00 11:20 a.m. 11:20 11:45 a.m. Welcome Scott Solomon Investor Relations Cynosure Overview and SculpSure Introduction Michael Davin Chairman and Chief Executive Officer SculpSure Marketing Strategy Doug Delaney Executive Vice President of Worldwide Sales Financial Overview Tim Baker President and Chief Financial Officer The Practical Perspective Dr. Bruce Katz Medical Director, JUVA Skin & Laser Center 11:45 a.m. Noon Break Noon 12:30 p.m. Demonstration of SculpSure Protocol Dr. Bruce Katz 12:30 12:55 p.m. General Question-and-Answer Session 12:55 1:00 p.m. 1:00 p.m. Lunch Wrap-up and Closing Remarks Michael Davin Chairman and Chief Executive Officer 2

3 Forward-looking Statements Any statements in this presentation about future expectations, plans and prospects for Cynosure, Inc., including Cynosure s intention to repurchase shares of its common stock from time to time under the share repurchase program, Cynosure s intention to broaden its reach through expanded indications and marketing programs, research and development projects, and Cynosure s active pipeline of potential acquisition opportunities, as well as other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the market price of Cynosure's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, levels of demand for procedures performed with Cynosure products and for Cynosure products themselves, competition in the aesthetic laser industry, general business and economic conditions, effects of acquisitions that Cynosure has made or may make, Cynosure's ability to develop and commercialize new products, Cynosure's reliance on sole source suppliers, the inability to accurately predict the timing or outcome of regulatory decisions, and economic, market, technological and other factors discussed in Cynosure's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this presentation represent Cynosure's views as of the date of this presentation. Cynosure anticipates that subsequent events and developments will cause its views to change. However, although Cynosure may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Cynosure's views as of any date subsequent to the date of this presentation. 3

4 Michael Davin Chief Executive Officer 4

5 Agenda Cynosure at a Glance Market Opportunity Non-Invasive Body Contouring SculpSure Introduction and Technology Overview SculpSure Benefits 5

6 Cynosure at a Glance 6

7 Who We Are The Leader in Energy-based Aesthetic Solutions 26 Flagship Workstations; 12 Major Treatment Areas 840 Employees in 12 Countries Installed Base of >50,000 Systems 48% of Business from Existing Customers International Distributors in 120 Countries 32% Revenue CAGR from

8 Global Brand Presence 132 Countries Laser Product Revenue by Sales Channel (Quarter ended 6/30/15) 19% 81% Direct Sales Force Third-party Distributors 8 8

9 We Offer Unsurpassed Product Coverage Non-invasive fat reduction Body contouring Cellulite treatment Hair removal Vascular treatment Tattoo removal Skin revitalization Sweat gland ablation Nail fungus Pigmentation Acne scars Women s health Surgical applications 9

10 Revenue Growth ($ in millions) 32% CAGR $226.0 $ % Growth YoY $153.5 $72.8 $81.8 $110.6 $134.6 $ H'14 1H'15 10

11 Market Opportunity 11

12 Capitalizing on Positive Market Dynamics Consumers spending billions to restore, repair and refresh U.S. market for non-surgical cosmetic procedures totaled $5 billion in Non-invasive fat reduction was fastest-growing nonsurgical procedure in Worldwide, roughly 24 million non-surgical cosmetic procedures were performed in Physicians focusing on profitably expanding their practices Changing dynamics of U.S. healthcare system Market CAGR Market Segment North America Europe Asia Latin America Total Energy Based Devices 9.1% 5.8% 12.1% 11.2% 9.3% Skin Tightening and Body Shaping 14.2% 10.6% 16.6% 12.8% 13.6% 1 American Society for Aesthetic Plastic Surgery 2 Medical Insight, Inc. 3 International Study of Aesthetic Plastic Surgeons 12

13 Addressable Worldwide Market for Body Contouring More than 1.3 billion adults aged 18 and older were overweight (BMI 25-30) in % of global population 18 and older Increased BMI creates risks for lifethreatening diseases such as: High blood pressure Stroke Diabetes Certain cancers Non-invasive body contouring is the fastest-growing area of aesthetic medicine * Prevalence of overweight/obese adults aged 20 years and older by sex in different countries * Source: World Health Organization, ASAPS 13

14 U.S. Addressable Market Core Physicians ~20,000 core physicians Approximately 9% of the market is penetrated Source: Health Advances interviews and analysis; physician data from the Association of American Medical Colleges (AAMC) 14

15 U.S. Addressable Market Non-Core Physicians ~270,000 non-core physicians < 1% of the market is penetrated Source: Health Advances interviews and analysis; physician data from AAMC 15

16 Demonstrated Success in Both Core and Non-Core Markets Approximate % of CYNO revenue 40% 60% Non-core Core 16

17 SculpSure 17

18 Cynosure: First in Lipolysis 2006: First FDA cleared laser lipolysis system for use in a minimally invasive procedure for the removal of unwanted fat SmartLipo MultiPlexing 2010: Noninvasive fat reduction proposed, theoretical analysis and ex vivo tissue test TriPlex : Abdominal studies demonstrate safety and efficacy and favorable comparison with cryolipolysis; Results presented at ASLMS : Early prototype May 2015: FDA clearance for flanks July 2015: FDA clearance for abdomen W 12W 18W 20W 30W 46W 40W, 24W, 15W 1064nm, 1320nm, 1440nm Thousands of systems sold and millions of procedures performed : Clinical study for FDA clearance (more than 100 patients treated in multisite study for flanks and abdomen); FDA submission February 2015 September 2015: CE Mark approval for SculpSure 18

19 SculpSure Non-Invasive Body Contouring with the Speed of Light World s first and only FDA-cleared noninvasive lipolysis device to treat stubborn fat in just 25 minutes Versatility with 4 flat, non-suction cooling applicators Treat more than 1 area during a 25-minute session Well tolerated treatment Independent proprietary modulation to control the delivery of energy while optimizing treatment Contact sensing to ensure safe and effective energy delivery Simple, hands-free operation with remote connectivity Lower cost of ownership for physicians practices Treats all Skin Types I VI 19

20 Fact vs. Fiction Is the procedure well tolerated? Yes The scientific data demonstrate that the sensation experienced by SculpSure patients is comparable with cryolipolysis SculpSure requires no suction to achieve fat reduction SculpSure is a well tolerated procedure with patients reporting minimal post-treatment discomfort Proprietary independent energy modulation and contact cooling No anesthesia or medication necessary Zero downtime post-treatment 20

21 Fact vs. Fiction Is light-based treatment as safe as cryolipolysis for non-invasive fat reduction? Yes FDA-cleared for non-invasive lipolysis of the flanks and abdomen Favorable safety profile An average of 93% of subjects in SculpSure s two U.S. clinical studies reported being satisfied with their treatment Proprietary preset energy modulation optimizes safety and clinical outcome 21

22 Fact vs. Fiction Can a laser effectively reduce fat non-invasively? Yes Controlled heating within 42 o C to 47 o C has been clinically shown to destroy subcutaneous adipose tissues while sparing overlying and underlying tissues. Statistically significant reductions in fat were achieved in SculpSure s clinical studies Cynosure has been a leader in laser lipolysis technology for nearly 10 years 22

23 What Physicians Are Saying Any effective device has some sort of sensation associated with it. Descriptions thereof are highly subjective to the patient being treated. I have personally had both cryolipolysis and SculpSure treatments. Although different, each is unique both of which are certainly within the tolerable limits that one would consider an acceptable non surgical fat reduction treatment without any form of anesthesia. Barry DiBernardo, M.D. Medical Director, New Jersey Plastic Surgery 23

24 What Physicians Are Saying SculpSure patients experience a feeling of warmth which becomes more noticeable at the end of the ramp phase and is modest during the dwell phase. Thus there is no protracted discomfort No cycles have needed to be interrupted due to discomfort, or for any other reason, in any patients treated at my site. Lawrence S. Bass, M.D., F.A.C.S. Director, Bass Plastic Surgery PLLC 24

25 What Physicians Are Saying We have had a great experience with SculpSure, treatment times are very short for largest areas compared to other non-invasive fat reduction devices now on the market. Patients have tolerated treatments very well, with minimal discomfort and there is negligible discomfort after treatment. Highly effective treatment results without the risks of major pain episodes post-treatment. Robert A. Weiss, M.D., F.A.A.D., F.A.C.Ph Director, Maryland Laser, Skin & Vein Institute President of the ASLMS 25

26 What Physicians Are Saying I am impressed with the basic research conducted in order to develop the treatment algorithms and the body of clinical evidence collected to date. My patients are very accepting of the treatment experience which prompted them to ask to have multiple areas treated in a single session. I have a wide variety of technology available in my office for non-invasive body contouring, and SculpSure is the device my staff is requesting be used for their own treatments. David H. McDaniel, M.D., FAAD Director, Laser & Cosmetic Center of Virginia 26

27 Superior Performance, Minimal Time 1060 nm Wavelength Energy Advantages Minimal absorption in melanin Can be used with all skin types High affinity for adipose tissue Targeted adipose penetration depth Energy Efficiency Low Absorption in Dermis Penetration Depth Efficacy in Adipose Tissue 27

28 Reduced Time to Treat Controlled Hyperthermic Laser Treatment Induces adipocyte injury by raising adipose temperature to a range of 42 o C to 47 o C Independent proprietary modulated energy delivery No damage to surrounding tissue SculpSure has one recommended setting Advanced Contact Cooling technology for optimal patient comfort Shorter treatment time is particularly appealing to busy professionals ( lunchtime lipo ) Treatment Time: SculpSure vs. Competitor 25min. TREATMENT 28

29 Flexible and Versatile Template System SculpSure Treatment Areas Versatility Templates and applicator system with 4 individual Patented Applicators for Contouring (PACs) Treats areas up to 2 times larger than the competitor s most commonly used applicator Multiple attachment configurations to customize treatments SIDE VIEW Control Easy to use flat, non-suction applicator design Unique placement template system provides control to treat patients problem areas 29

30 Patented Applicator Technology to Sculpt and Define APPLICATOR CONTACT SENSING CONTACT COOLING Target Selective wavelength to target fat cells below the dermis DERMIS PROPRIETARY ENERGY MODULATION Disrupt Highly efficient wavelength for controlled energy delivery FAT CELLS Eliminate Over time, the body naturally eliminates the fat cells 30

31 Flank Template Configurations 31

32 Flank and Abdomen Treatment Contact Sensing 32

33 Abdomen Template Configurations 33

34 SculpSure Clinical Overview 5 ASLMS podium presentations Clinical investigators: Dr. John Decorato Dr. Bruce Katz, Dr. Larry Bass and Multisite trials 100s of patients have been treated Over 90% patient satisfaction rate 1 Comfortable, well-tolerated treatment comparable with leading competitor Minimal post-treatment discomfort *Clinical and Histological Evaluations of a 1060nm Laser Device for Non-Invasive Fat Reduction - John W. Decorato, MD., F A C S. Rafael Sierra, Ph.D., Bo Chen, Ph.D., Westford, MA, Katz B, Doherty S. A multicenter study of the safety and efficacy of a non-invasive 1060 nm diode laser for fat reduction of the flanks. Paper presented at: 2015 Annual American Society for Laser Medicine and Surgery Conference; April 22-26; Kissimmee, FL. 34

35 Photos courtesy of B. Katz, MD Flank Before 1 tx; 12 weeks post Weight Change: -1 lbs 35

36 Photos courtesy of B. Katz, MD 36

37 Photos courtesy of L. Bass, MD Abdomen Before 1 tx; 12 weeks post Weight Change: +1 lbs 37

38 Photos courtesy of L. Bass, MD 38

39 Photos courtesy of S. Doherty, MD Core Before 1 tx; 6 weeks post SculpSure 39

40 Photos courtesy of S. Doherty, MD 40

41 Shorter Treatment Time Benefits Practitioners and Patients Pricing Model will Help High-Volume Practices Enhance Profitability Flanks Cryolipolysis One 25-minute treatment Two 60-minute treatments Both flanks Total treatment time: 25 minutes Both flanks Total treatment time: 120 minutes 41

42 Shorter Treatment Time Benefits Practitioners and Patients Pricing Model will Help High-Volume Practices Enhance Profitability Abdomen Cryolipolysis Abdomen Total treatment time: 25 minutes Abdomen Total treatment time: 60 minutes 42

43 SculpSure Benefits SculpSure is differentiated on three significant dimensions, appealing to both physicians and patients Versatile Convenient Profitable Four universal applicators can be employed in various combinations and directions to treat a wide range of body types Can accommodate non pinchable fat patients not treatable by competitors 25-minute treatment time is not disruptive to patients daily routines and may enable higher conversion to treatment than with competitors Ideal for busy professionals Well tolerated Requires no suction Faster treatment time generates higher profit per hour per patient More patients due to versatility and convenience Source: Health Advances interviews and analysis 43

44 Doug Delaney Executive Vice President of Worldwide Sales 44

45 Agenda Market Position SculpSure Sales Force Distribution Strategy Marketing Launch Timeline 45

46 Market Position Energy or Mechanism of Action Infrared laser Cryolipolysis Ultrasound Treatment Time 25 minutes 60 minutes 45 minutes Hands-free Yes Yes No Number of treatments Average ~2 Average ~2 3 46

47 World-Class Support on a Local Basis New internal/external team will deliver turn-key support to grow the business Dedicated Internal Marketing Specialists Educate office staff with online training and support Expect to add 5 to 10 by 3/31/16 Dedicated Field Marketing Reps Develop marketing strategies and support promotions and events to drive existing patient base and practice growth (add 15 to 20 by 3/31/16) Dedicated Field Clinical Specialists Provide ongoing advanced training Expect to add 8 to10 by 3/31/16 Additional Sales Support Distribution Leverage existing Expect to add 20 to 25 by 3/31/16 Future Programs DTC outreach program Treatment diagnostics 47

48 Leveraging Existing Customer Base and Product Offerings Current customers account for 46-48% of new system placements KOLs and regional luminaries Significant installed base U.S. and OUS More than 10 years of laser lipolysis expertise through Smartlipo brand Broad product line creates opportunities for bundling 48

49 Marketing Launch Timeline Soft Launch 2H 2015 Full Launch 1H

50 Q3: Limited Pre-Launch Release to Key Sales Territories is Underway Marketing Materials: Sales Brochure Sell Sheets Product Presentation Video Soft Launch 2H 2015 Full Launch 1H

51 Q4: Expanded Collateral and Support Marketing Materials: Sales Tools Brochure Sell Sheets Product Presentation Treatment Videos Physician Support: Internal Marketing Specialist Support External Marketing & Clinical Field Support Enhanced Online Portal Social Media Campaign Personalized Microsite Soft Launch 2H 2015 Full Launch 1H

52 Q4: Trade Shows European Academy of Dermatology & Venereology EADV Launch October 8 11, Copenhagen American Society for Dermatologic Surgery ASDS - Workshop October 15 18, Chicago American Society of Plastic Surgeons ASPS - Special Event October 16 20, Boston Soft Launch 2H 2015 Full Launch 1H

53 Q4: International Launch CE Mark approval received Direct Cynosure offices in UK, France, Germany and Spain Ongoing focus on international registrations Soft Launch 2H 2015 Full Launch 1H

54 1H: Launch Timeline January / February Consumers: Launch PR Campaign Social Media Campaign Internal: National Sales Meeting Q March / April American Academy of Dermatology ASLMS Soft Launch 2H 2015 Full Launch 1H

55 Summary SculpSure launch underway Leveraging global infrastructure Dedicated clinical, marketing and sales support Expect strong uptake from current Cynosure customers worldwide Proven success in core and non-core markets 55

56 Tim Baker President and CFO 56

57 Agenda SculpSure Business Model & Margin Profile Anticipated Launch Expenses Intellectual Property 57

58 SculpSure Business Model System List Price $150,000 4 laser diode applicators Template kit (attachment frames, attachment belts) On-site installation Clinical in-service 12-month warranty covers the system and applicators Margin profile 60%+ Extended warranty expected to be lower than traditional product line 58

59 Proprietary Applicator Design APPLICATOR CONTACT SENSING CONTACT COOLING DERMIS PROPRIETARY ENERGY MODULATION FAT CELLS Contact sensing and cooling ensure safe and effective energy delivery 59

60 Frame Attachments (Templates) Provide Flexibility to Treat Multiple Anatomical Areas 60

61 SculpSure Business Model Consumables Patented Application for Contouring (PAC) Price to practitioner: Sold in PAC keys of 100 applicator uses $50/applicator use (Each PAC key = $5,000) PAC key Example: 4-template configuration is 4 applicator uses ($200) Promotional pricing of $3,500 per PAC key through year-end Margin profile greater than 80% PAC key packaging 61

62 Shorter Treatment Time Benefits Practitioners and Patients Pricing Model will Help High-Volume Practices Enhance Profitability Flanks Cryolipolysis $100 $100 $125 $125 Cost to physician: $200 Both flanks Total treatment time: 25 minutes Cost to physician: $250 Both flanks Total treatment time: 120 minutes (60 per side) 62

63 Shorter Treatment Time Benefits Practitioners and Patients Pricing Model will Help High-Volume Practices Enhance Profitability Abdomen Cryolipolysis $200 $275 Cost to practitioner: $200 Total treatment time: 25 minutes Cost to practitioner: $275 Total treatment time: 60 minutes 63

64 Expenses Related to SculpSure Launch ($ in thousands) Expenses Q Q Q Personnel $200 $1,000 $1,600 Marketing $1,000 $1,100 $2,300 Total $1,200 $2,100 $3,900 64

65 Total Sales and Marketing Expense as a Percent of Total Revenue 40% 38% 36% 34% 32% 34% 32% 35% 33% 32% 30% 30% 30% 28% 26% Q3'14 Q4'14 Q1'15 Q2'15 Q3'15(e) Q4'15(e) Q1'16(e) % for estimated periods shown at midpoint of expected range 65

66 Intellectual Property 9 issued U.S. patents; 3 pending Applicator Device and methods of treatment Fiber detection Energy modulation Hands-free treatment 66

67 Summary Significant opportunity to penetrate large and vastly underserved global market Strong IP position Favorable margin profile on both the system and consumables Recurring revenue stream through PACs 67

68 Dr. Bruce Katz Medical Director, JUVA Skin & Laser Center Clinical Professor of Dermatology, Icahn School of Medicine at Mount Sinai Director, Cosmetic Surgery and Laser Clinic, Mount Sinai Medical Center 68

69 Background Dermatologist, educator and clinical researcher Manhattan-based cosmetic surgery and laser surgery practice serves patients worldwide Over 30 years in practice Led clinical development of Smartlipo and was the first physician to introduce the device in the U.S. Clinical Professor of Dermatology at the Mount Sinai School of Medicine Published extensively in leading medical and scientific journals Led one of two U.S. clinical studies submitted as part of FDA 510(k) application for SculpSure 69

70 Agenda My Practice SculpSure Clinical Experience Before and After Images SculpSure Advantages 70

71 JUVA Skin & Laser Center Perform over 4,000 cosmetic procedures annually Background in non-invasive lipolysis (Liposonix, Ultrashape, SculpSure) Number of clinical studies conducted for non-invasive body contouring KYTHERA Biopharmaceuticals, Lithera/Neothetics 71

72 The Science of Using Laser Energy to Destroy Adipose Tissue Laser lipolysis is a widely recognized and clinically accepted modality of removing fatty tissue Clinical data demonstrates that laser exposure results in significant release of fat from adipocytes while nonadipocytes remain intact Reproducible results of thermal injury to adipocytes within the target temperature zone of 40ºC to 47ºC Before and after image of laser lipolysis patient 72

73 Clinical Evaluations of a 1060nm Laser Device for Non-Invasive Fat Reduction (ASLMS 2014) John W. Decorato, MD, FACS Study Design 16 subjects in total were treated on the abdomen prior to abdominoplasty 1060nm diode laser with contact cooling for skin protection was used to cause injury to adipose tissue by establishing a controlled hyperthermic temperature of C Evaluation A thermocouple needle was placed into the treatment area to measure tissue temp at interval depths Tissue histology (H&E stain) was obtained at multiple follow-up intervals from 1 week to 24 weeks 73

74 Clinical and Histological Evaluations of a 1060nm Laser Device for Non-Invasive Fat Reduction John W. Decorato, MD, FACS Results In vivo abdominal tissue tests showed hyperthermic temperature can be achieved and maintained in subcutaneous adipose tissue by a 1060 nm laser in conjunction with surface cooling A prolonged exposure of subcutaneous tissue at the hyperthermic temperature can cause adipocyte injury 3 Month Post Conclusion Laser treatment was safe and well tolerated. No skin damage was observed. No sign of significant changes in blood lipid or liver chemistry after treatment 74

75 Clinical Evaluations of a 1060nm Laser Device for Non-Invasive Fat Reduction as Compared to Cryolipolysis (ASLMS 2014) John W. Decorato, MD, FACS Study Design 6 subjects were treated in split flank study with either laser, cryolipolysis or no treatment control 3 Month Post Evaluation Measurements included ultrasound, MRI and blinded photo evaluation at 3 and 6 months post treatment 75

76 Clinical Evaluations of a 1060nm Laser Device for Non-Invasive Fat Reduction as compared to Cryolipolysis John W. Decorato, MD, FACS Results MRI 3 month post Tx 6 month post Tx Fat Volume Reduction Average Reduction 3 Month Post Laser Side Cryo Side Laser Side Cryo Side 24% (±9%) 22% (±13%) 21% (±10%) 19% (±9%) Conclusion Laser hyperthermic treatment is safe with only mild and transient side effects. Ultrasound, MRI, and photographic evaluations shows similar level of fat reduction (up to 25%) by laser hyperthermia as compared to cryolipolysis 76

77 Fat Thickness Demonstrated by MRI Up to 25% Reduction in Stubborn Fat Control Side Laser treatment Baseline 3 month post Tx 6 month post Tx Clinical and Histological Evaluations of a 1060nm Laser Device for Non-Invasive Fat Reduction - John W. Decorato, MD, FACS 77

78 Clinical Study: Non-Invasive 1060nm Diode Laser for Fat Reduction of the Flanks Bruce Katz, MD, Sean Doherty, MD Study Design 49 patients received laser treatment to one flank The other side served as a control Follow-up conducted at 6 and 12 weeks post treatment 3 Month Post Evaluation Ultrasound measurements of fat thickness were performed at baseline, 6 and 12 weeks post treatment High resolution photographs were taken at baseline and 12 weeks post treatment Subjects were asked to complete a satisfaction questionnaire 78

79 Clinical Study: Non-Invasive 1060nm Diode Laser for Fat Reduction of the Flanks Bruce Katz, MD, Sean Doherty, MD Baseline Results Blinded board certified dermatologists were able to identify the post treatment photograph 90.3% of the time Statistically significant reductions were achieved based on comparing treated and control sides at 6 and 12 weeks 96% of the subjects rated that they were satisfied Most common side effect was mild to moderate tenderness after treatment 3 Month Post Conclusion The non-invasive 1060nm diode laser used in this study was a successful and safe means of fat reduction of the flanks 79

80 Photos Courtesy of Bruce Katz, MD Clinical Study: Non-Invasive 1060nm Diode Laser for Fat Reduction of the Flanks Bruce Katz, MD, Sean Doherty, MD Baseline 3 Month Post 80

81 Clinical Study: Non-Invasive Fat Reduction of the Abdomen with a 1060nm Diode Laser Lawrence Bass, MD, Sean Doherty, MD Baseline Study Design 35 subjects received a single treatment session with multiple applicators of 1060nm laser on the abdomen for fat reduction Evaluation Ultrasound imaging 3 Month Post and high resolution 2D photography at baseline, 6 and 12 weeks post treatment Weight was recorded at baseline and at each follow up visit Patient satisfaction was recorded at 12 weeks Blinded evaluators were asked to choose the baseline photo from randomized pre and post treatment sets Fat thickness change was measured using ultrasound imaging at 6 and 12 weeks 81

82 Clinical Study: Non-Invasive Fat Reduction of the Abdomen with a 1060nm Diode Laser Lawrence Bass, MD, Sean Doherty, MD Baseline Results Reviewers were able to identify the post treatment photograph 95% of the time Statistically significant reductions were achieved based on comparing 6 and 12 weeks to baseline 91% of subjects were satisfied with the treatment results The most common side effect was mild to moderate tenderness after treatment 3 Month Post Conclusion The data demonstrates that 1060nm light based noninvasive body contouring is an efficacious modality Consistent reduction in the thickness of the subcutaneous fat layer was demonstrated based on ultrasound measurements and blinded photographic assessment 82

83 SculpSure s Simple, Fast Treatment Algorithm Step 1 Assess and Mark up to 4 treatment areas Step 2 Customizable Attachment System Configure attachment frames and secure with adjustable straps 4 flat non-suction applicators, treat with any combination Each applicator = 6x4cm (24cm2); 4 applicators = 96cm2 Step 3 Applicator Placement Place applicators securely in the frames Green lights on the applicator indicate contact between the applicator and the patient 83

84 SculpSure s Simple, Fast Treatment Algorithm Step 4 25 Minute Hands-Free Treatment Initial 4 minutes to achieve target temperature (42-47 ) to damage adipocyte cells; Next 21 minutes 1060nm energy is delivered via proprietary modulation for effective and well tolerated treatment Step 5 Post-treatment Remove applicators, frames and straps from patient Patient treatment is complete, no post treatment massage needed 84

85 Photos courtesy of B. Katz, MD Flank Before 1 tx; 12 weeks post SculpSure Weight Change: + 2 lbs 85

86 Photos courtesy of B. Katz, MD 86

87 Photos courtesy of B. Katz, MD Flank Before 1 tx; 12 weeks post SculpSure Weight Change: - 2 lbs 87

88 Photos courtesy of B. Katz, MD 88

89 Photos courtesy of S. Doherty, MD Flank Before 1 tx; 12 weeks post SculpSure Weight Change: lbs 89

90 Photos courtesy of S. Doherty, MD 90

91 Photos courtesy of. Bass, MD Abdomen Before 12 weeks post SculpSure Weight Change: +1.8 lbs 91

92 Photos courtesy of L. Bass, MD 92

93 Photos courtesy of L. Bass, MD Abdomen Before 1 tx; 12 weeks post SculpSure Weight Change: + 1 lbs 93

94 Photos courtesy of L. Bass, MD 94

95 Photos courtesy of S.Doherty MD Abdomen Before 1 tx; 12 weeks post SculpSure Weight Change: + 2 lbs 95

96 Photos courtesy of S. Doherty, MD 96

97 Photos courtesy of S. Doherty, MD Abdomen Before 1 tx; 12 weeks post Weight Change: -4.4 lbs 97

98 Photos courtesy of S. Doherty, MD 98

99 Summary SculpSure is a well-tolerated and highly effective treatment Patients get the benefits of non-invasive fat reduction with no downtime The universal 4-applicator system allows convenient treatment of multiple anatomical areas this is challenging for other systems SculpSure s 25-minute treatment is ideal for today s busy, time-crunched professionals women and men Shorter treatment time enhances my practice s ROI Hands-free treatment with remote connectivity SculpSure offers the lowest total cost of ownership of any non-invasive fat reduction treatment on the market Expect SculpSure s favorability to serve an entry-point for new aesthetic patients to seek other non-invasive cosmetic procedures 99

100 Demonstration 100

101 Q&A Session 101

102 Michael Davin Chief Executive Officer 102

103 SculpSure Milestones: Receive European CE Mark International registrations Expanded clearances for treatment areas Applications beyond non-invasive fat reduction Additional distribution channels 103

104 Key Messages for the Day Cynosure continues its 25 year history of technology innovation and product excellence with the world s first hyperthermic laser for non-invasive fat reduction Business model creates recurring revenue and income streams and opportunity for higher margins over time SculpSure platform provides aesthetic practitioners with a versatile, convenient system that will delight patients by delivering great results Cynosure s suite of body contouring products offers physicians the tools to grow their body contouring practice 104

105 Investor Event S E P T E M B E R 1 5,