Mazor Corporate Presentation $MZOR

8/16/2019 Mazor Corporate Presentation $MZOR

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Transforming Spine Surgery

from Art to State-of-the Art

February 2016

(TASE: MZOR; NASDAQ GM: MZOR)


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Forward Looking Statements

This presentation contains “forward-looking statements” within the meaning of the private Securities

litigation Reform Act of 1995 and other securities laws. Forward-looking statements are not historical

facts, and are based upon management’s current expectations, beliefs and projections, many of which, by

their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good

faith. However, there can be no assurance that management’s expectations, beliefs and projections will

be achieved and actual results may differ materially from what is expressed in or indicated by the

forward-looking statements. Forward-looking statements are subject to risks and uncertainties thatcould cause actual performance or results to differ materially from those expressed in the forward-

looking statements, including risks detailed in Mazor Robotics Ltd.’s (“Mazor Robotics” or the

“Company”) annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission.

Forward-looking statements speak only as of the date the statements are made. The Company assumes

no obligation to update forward-looking statements to reflect actual results, subsequent events or

circumstances, changes in assumptions or changes in other factors affecting forward-looking informationexcept to the extent required by applicable securities laws. If the Company does update one or more

forward-looking statements, no inference should be drawn that the Company will make additional

updates with respect thereto or with respect to other forward-looking statements.

2


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Core, bone-mounting robotic IP ownership

Proven accuracy and reproducibility, reduces radiation exposure; 15,000+ cases

Global presence: 100+ system installed base driving adoption and utilization

Razor/razor-blade business model with compelling provider economics/patient outcomes

Positioned to succeed in changing spine landscape: outpatient growth, market segmentation

The Mazor Robotics Story

Fundamentally altering the paradigm of minimally-invasive and complex spinal surgery

through an integrated, robotic platform

Renaissance the first FDA/CE-cleared imaging-based surgical guidance system for spinal surgery;

additional commercial application in brain surgery1

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3

4

5

6

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Mazor Robotics Snapshot

98,000+

$26m

Implants

~15KCases

13Granted

Patents

16US Capital

Sales Force

61US Dedicated

Sales Force

18Countries with

Presence

98.3%Placement

Accuracy

2015

Revenues

40%Recurring

Sales

Clinical Experience

Business Value Proposition

Robust Regulatory / IP

Organization

100+Commercial

Installed Base

2Call Points

26Published

Papers

>75%Gross Margin

11FDA

Clearances

$849kList Price

>23%Y/Y

Growth

150Total

Employees

45US Clinical

Sales Force

40Countries Cleared

For Clinical Use

1Countries Pending

Regulatory Approval

1. Currently pending regulatory approval Japan.2. Based on results 12 months ended 31 December 2015

$1.5k USA Disposables

List Price

.

(2)

(1)

(2)

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The Need: Existing Clinical Challenges in Spinal Surgery

5

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JpQUzzXPB2wB-M&tbnid=V_poKATrsUSLfM:&ved=0CAUQjRw&url=http://www.engr.colostate.edu/bep/events.html&ei=oHBNUvLuKIbCtQbhvIGoDA&bvm=bv.53537100,d.d2k&psig=AFQjCNEQmI1Th5Ryh86Yk5wAntGUf94d7g&ust=1380893182978309


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Ease of use

Reproducible precision and accuracy; predictable

Minimizes radiation

Use in a variety of procedures (open, MIS,

routine/complex spine)

Surgeon-controlled

Reduced costs

Clinical differentiation

Why Renaissance? The Clinical Need…

Limitations of current spine procedures drive the need for predictable results,

independent of case complexity, level of invasiveness or surgeon’s level of experience

Significant learning curve

Increased risk for misplacement

Intra-operative exposure to radiation

Restricted or even no line-of-sight at anatomical

site

Dependence on two-dimensional imaging for

three-dimensional surroundings

No ability to “simplify” complex cases

Existing Clinical Challenges in Spinal Surgery... …and the Renaissance Solution

Renaissance: Born from the desire to transform spine surgery

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Mazor Robotics’ Solution


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The Renaissance Solution

Compelling

Business Model

within Large,

Growing Markets

Robotics/Imaging

a Focus of Market

Leaders

ComprehensiveSolutions Provider:

Hospital

PartnershipStrength of Clinical

Evidence Base

Driving Increased

Adoption

Integrated, Seamless

Workflow

Beyond Spine:

Approved Brain

Application


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Renaissance: Surgical Workflow

Surgeon-

Controlled

Low Radiation

Precise

Reproducible

Fast Learning

Curve

Enables

MIS

Predictable

Results

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Renaissance Seamless 4-Step Workflow

Pre-Operative

Blueprint

Hardware

Attachment

Surgical

Execution

3D

Synchronization

Minimize Concern, Maximize Confidence

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‘PRO’ Solutions

A Solution approach addresses a specific need of our customers

Three new PRO (Predictable Renaissance Operation) solutions showcased at NASS

2015

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• For enabling posterolateral pedicle

screw placement

PROlatTM

• For planning and enhancing theexecution of spinal deformityprocedures

PROdef TM

• For enabling compatibility with intra-op imaging systems and increasingflexibility in spine trauma cases

PRO Scan &PlanTM


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Single-Position Lateral Surgery

Pedicle Screws placed MIS in the lateral decubitus position


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Business Opportunity Realization


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…and the Business Opportunity

Industry Procedure / Reimbursement Landscape

___________________________1. Spine surgeries with implants per year in the US alone > 500,000. Opportunity shown reflects US Thoraco-Lumbar spine market procedure volume only.

2. Reflects the number of da Vinci Prostatectomy, or dVP, procedures performed by Intuitive Surgical in 2012 per the Intuitive Surgical, Inc. 10-K for the period ended December 31, 2012.

3. Reflects the number of cancer-related da Vinci Hysterectomy, or dVH, procedures performed by Intuitive Surgical in 2012 per the Intuitive Surgical, Inc. 10-K for the period ending December 31, 2012.

Hip

Replacement

Prostatectomy (2)

Partial Knee

ReplacementCancer-related

Hysterectomy (3)

Spinal Fixation (1)

A n n u a l V o l u m e ( P r o c e d u r e s , U S )

Average DRG (2012, $)

Robotics & MIS adoption continues: spine remains a significant, unpenetrated opportunity

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Compelling Business Model

DisposablesSystems Services

• All systems sold, not

placed

• $849k list price

• $129K Brain module

• Single-use

• Designed to easily adapt

the RBT Device to various

surgical applications /

mounting platforms

• $1.5k list price

• Annual service

agreements

• Includes other income

• ~10% of fixed equipment

costs beginning in second

year

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American Market Footprint

Key

US Presence

Renaissance System

2nd Renaissance System

Training Center

Geographic Cluster s

US Install Base – 65 Systems in 62 Accounts

16

5 Surgery

Centers 13%

56

Hospitals87%


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International Market Footprint

___________________________

1. Number in parentheses represents installed systems.

International Presence (1)

Vietnam (1)

Singapore

Korea

Japan

Taiwan (5)

Australia (3)

Russia (7)

India (2)

Hong Kong

China (5)

Italy (2)

Germany (10)

The Netherlands (2)

Switzerland (1)

Israel (5)

Turkey (1)

Spain (1)

Key

Mazor System

Distribution Agreement

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Recent Clinical Data


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Strength of Clinical Evidence Base… Consistent Accuracy with Improved Outcomes Proven Reduction in Complications and Revisions (1)

___________________________

1. Based on published data: Cannestra, e-poster NASS 2014; Kantelhardt, ESJ 2011; Ringel, ESJ 2012, Roser, 2013.2. Freehand represents the average fluoro radiation exposure during a freehand operation as a baseline for comparison to Renaissance only.

Proven Reduction in Exposure to Radiation (1)

Improvementsstatistically significant

56% 48% 65%

(2)

% Reduction

18.1%

5.8%5.2%

0.9%

Complications Revision

Free-handRenaissance

100.0% 100.0% 100.0%

44.0% 52.0%

35.0%

Cannestra, 2014 Roser, 2013 Kantel hardt, 2011

RenaissanceFree-hand

98-99% Accuracy


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Impact of Renaissance Adoption

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Beyond Spine: Brain Module

Add-on application for the precise positioning of tools and implantable devices during

brain surgery, targeting biopsies and deep brain stimulation procedures

Small, frameless platform

Increased patient comfort

Three points of fixation to the skull

Easily changes trajectories with 360° working volume

More than 150 cases to date

FDA cleared for "Precise positioning of surgical tools and implantable devices in the brain”

Mazor Brain Application

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Pricing:

List Price for Brain Application upgrade of $129,000

Disposable at $4,000


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Growth Strategy

Establish Renaissance as the standard-of-care

R&D Innovation

Evidence-Based

Medicine

Deepen Product

Portfolio

Solutions approach

ContinuedGlobalization

Expand

Sales Force

22

Increase Utilization


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Financial Overview


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Scalable Business Model

24

Gross margin

Revenues Breakdown

74% 70%71%

68%57%

51%

26%30%

29%

32% 43%

49%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2010 2011 2012 2013 2014 2015

Disposables, Service and Others Systems $26,096

$19,983$21,208

$5,904

$12,175

$3,973

79%79%76%68%76% 78%


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Growing Commercial Installed Base

2010 2011 2012 2013 2014 2015

Consistent sequential and annual global growth

25

Commercial Installed base

2 3 4 4 6 6 6 8 11

14 18 19

24 29 30

34 37 39 44 46 47

53 5664

9 9 11 14

17 18 19 19

19 20

21 22

22

25 26

2931

33

3337

39

40 40

44

0

20

40

60

80

100

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

US International


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Strong Adoption Driving Revenue Growth

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($ in thousands) 2015 2014 2013 2012

Revenue $26,096 $21,208 $19,983 $12,175

Cost of sales $5,827 $4,396 $4,280 $2,893

Gross Profit $20,269 $16,812 $15,703 $9,282

% margin 78% 79% 79% 76%

Operating Expenses

Research and development $6,324 $5,776 $4,174 $2,760

Selling and marketing $24,947 $21,352 $15,692 $8,887

General and administrative $4,305 $4,392 $2,766 $1,845

Total operating expenses $35,576 $31,520 $22,632 $13,492

% of revenue 136% 149% 113% 111%

Loss from operations ($15,307) ($14,708) ($6,929) ($4,210)

Net loss ($15,385) ($15,272) ($20,529) ($7,064)

Income Statement

Year Ended December 31,


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Strong Balance Sheet

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as of December 31, as of December 31,

($ in thousands) 2015 2014

Assets

Cash and Cash equivalent $13,519 $22,283

Short-term investments $21,687 $17,011

Trade receivables $5,002 $1,713

Other accounts receivable $1,420 $1,085

Inventory $2,400 $2,631

Total current assets $44,028 $44,723

Total non-current assets $6,565 $7,091

Total Assets $50,593 $51,814

Current liabilities $7,894 $7,113

Total non-current liabilities $299 $290

Equity $42,400 $44,411

Total liabilities and Equity $50,593 $51,814

Consolidated Statements of Financial Position


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Core, bone-mounting robotic IP ownership

Proven accuracy and reproducibility, reduces radiation exposure; 15,000+ cases

Global presence: 100+ system installed base driving adoption and utilization

Razor/razor-blade business model with compelling provider economics/patient outcomes

Positioned to succeed in changing spine landscape: outpatient growth, market segmentation

The Mazor Robotics Story

Fundamentally altering the paradigm of minimally-invasive and complex spinal surgery

through an integrated, robotic platform

Renaissance the only FDA/CE-cleared imaging-based surgical guidance system for spinal surgery;

additional commercial application in brain surgery

1

2

3

4

5

6

28

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