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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.
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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
2
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
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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
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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
$3,973
79%79%76%68%76% 78%
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Growing Commercial Installed Base
2010 2011 2012 2013 2014 2015
Consistent sequential and annual global growth
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Commercial Installed base
2 3 4 4 6 6 6 8 11
14 18 19
24 29 30
34 37 39 44 46 47
53 5664
9 9 11 14
17 18 19 19
19 20
21 22
22
25 26
2931
33
3337
39
40 40
44
0
20
40
60
80
100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
US International
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Strong Adoption Driving Revenue Growth
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($ 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
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