Dari rioH oHealth th Corp. orp. Per erso sonal nalized H ed - - PowerPoint PPT Presentation

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Dari rioH oHealth th Corp. orp. Per erso sonal nalized H ed - - PowerPoint PPT Presentation

Dari rioH oHealth th Corp. orp. Per erso sonal nalized H ed Heal ealth h Management anagement NASD SDAQ: D DRI RIO Forw orward rd Look ooking S g Sta tate tements This presentation of DarioHealth Corp. (the Company) and


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Dari rioH

  • Health

th Corp.

  • rp.

Per erso sonal nalized H ed Heal ealth h Management anagement

NASD SDAQ: D DRI RIO

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SLIDE 2

Forw

  • rward

rd Look

  • oking S

g Sta tate tements

  • This presentation of DarioHealth Corp. (the “Company”) and statements of our management or agents related thereto contain or may contain forward-looking

statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements which are not historical reflect our current expectations and projections about our future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and their interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future

  • events. Words such as “seek,” “intend,” “believe,” “plan,” “estimate,” “expect,” “anticipate,” “will,” “would,” and other similar expressions all denote forward-looking

statements within the meaning of the Act.

  • Readers are cautioned that actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially and

perhaps substantially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. Factors that could cause or contribute to such differences include, but are not limited to our compliance with regulatory requirements, the impact of current and any future competition, our current and future capital requirements and our ability to satisfy our capital needs through financing transactions or otherwise, our ability to manufacture, market and generate sales of our Dario™ diabetes management solution, as well as other factors and risks discussed in the Company’s filings (including the results of the company’s commercial and regulatory plans for Dario™) with the U.S. Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

  • In addition, readers are cautioned that any estimates, forecasts or projections contained in this presentation or as may be discussed by our management or agents

have been prepared by our management in good faith on a basis believed to be reasonable. However, such estimates, forecasts and projections involve significant elements of subjective judgment and analysis and no representation can be made as to their attainability. No representation or warranty (express or implied) is made or is to be relied upon as a promise or representation as to our future performance. Readers are cautioned that such estimates, forecasts or projections have not been audited and have not been prepared in conformance with generally accepted accounting principles.

NASDAQ: DRIO 2

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Dar ario ioHealt ealth | h | Inv nves estment ent Hig Highlig hlight hts

  • Scalable diabetes management platform
  • Large and growing global market opportunity
  • Regulatory clearance achieved in several countries
  • Multiple growth drivers
  • Experienced management team
  • Strong revenue growth

NASDAQ: DRIO 3

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SLIDE 4

40

Employees

New York

Headquartered

2011

Founded

7

Countries with users

4

Regulatory bodies approvals

5

Countries fully reimbursed

Dar ario ioHealt ealth | h | At a G a Glance lance

DarioHealth Corp. (NASDAQ: DRIO) is a leading global digital health company with personalized, mobile health solutions. We believe in empowering people with chronic conditions, with more control and independence to manage their daily challenges and changes. Harnessing the power big data, we’re able to give each person unparalleled, real-time insights and the guidance they need to navigate their unique journey.

NASDAQ: DRIO 4

~$5m

2017 Revenue

Qua uarter terly R Rev evenue enue

$67 $175 $273 $308 $568 $669 $728 $838 $1,007 $1,210 $1,375

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

(in thousands)

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SLIDE 5

Dar ario ioHealt ealth | h | Geo eograp aphical M hical Mar arket et Over erview iew

NASDAQ: DRIO 5

425m

People with diabetes (2017)

693m

People with diabetes projected by 2045

German any

Since Q3 2017

Netherlan ands

Since Q3 2016 Insurance Coverage

USA SA

Since Q2 2016 Partial Coverage

Ita taly ly

Since Q1 2016 Insurance Coverage

Can anad ada a

Since Q4 2015 Insurance Coverage

Austr tralia lia

Since Q3 2015 Insurance Coverage

UK UK

Since Q1 2015 Insurance Coverage

Population with Diabetes by Country

2.7m 1.1m 2.6m 3.4m 30.2m 1.0m 7.5m

Dario currently has access to

48.5 million people with diabetes worldwide

471m

Pre-diabetes projected by 2035*

* Pred Prediabet etes diagno nosis and nd t trea reatment ment: : A rev review ew, , by by Nihdi di Bans nsal, , 15 15 Ma Mar 2015 2015

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Dar ario ioHealt ealth | h | Diab iabet etes es Monit nitoring ng Shift hifting ing to a Fo a Focus cus on P n Per ersonali nalizat ation

Traditional Approach

  • Periodic data
  • General statistics based treatment
  • Independent factors - silo events
  • Driven by independent professionals &

theories

Dario Health

  • Longitudinal data
  • Personalized precision treatment
  • Dynamic impact of each factor
  • Driven by personalized data & AI/ML

technology

NASDAQ: DRIO 6

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SLIDE 7

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Dar ario ioHealt ealth | h | Proven R en Red educt uctio ion in n in Healt Healthcar hcare Costs*

Total annua nnual a avera erage e med edica cal co costs

$11, 11,000 000 - $13, 13,700 700 A person with diabetes with complications can cost as much as $20,700 annually

* American Diabetes Association (ADA), The Cost of Diabetes, Last reviewed Oct 2013, http://www.diabetes.org/advocacy/news-events/cost-of-diabetes.html, (Accessed Nov 2017).

Diabetes Related Health Costs

Total annua nnual a avera erage e diabet etes es-speci ecific co c costs

$7, 7,900 900 Studies tudies ha have s e sho hown tha n that t Dario io’s 1% % reductio eduction n in H in HbA bA1c y c yields ields s subs ubsta tantia ntial l sav avings gs $80 80 - $100 100 per per pa patient tient per per m month. nth. $35. 35.8 8 billio billion n of po f potentia tential l saving ings to to the the U.S. hea healthca lthcare e system tem.

Dario Savings

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Dar ario ioHealt ealth | h | Dar ario io’s Manag anaged ed C Car are e Solut lutio ion

Device & App

  • 100% real-time data capture
  • Statistics snapshot and dashboard
  • Personalized logbook & tracking
  • User-controlled sharing with healthcare
  • Personalized digital guidance

Data and performance driven

  • Cloud storage of all data
  • Automated data driven guidance
  • Clear ROI driven

– Lower coast – Clinical outcomes

Targeted coaching approach

  • Enable scalable coaching capabilities
  • Simple integration with clinical programs
  • Collaboration with professional coaching
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SLIDE 9

Dar ario ioHealt ealth | | The D The Dar ario io Eng ngag age e Plat latfo form

Dario Engage Platform provides full coverage, scalable healthcare solutions that are easily customized to integrate with any clinical programs covering all facets

  • f diabetes management and care:

Type1, Type2, gestational diabetes, and prediabetes.

9

Engagement Monitoring Coaching Management

Personalized health guidance 100% data capture, real-time data sync to secure cloud storage Personalized platform, mobile application, coaching, digital guiding, community, support Clinical program integration, automated processes, and reporting

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SLIDE 10

BT Sync Dedicated Offline

Engagement Monitoring Coaching Management

Dar ario ioHealt ealth | h | Compet etit itive Land Landscap cape

10

DarioHealth is the only comprehensive diabetes management platform

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Dar ario ioHealt ealth | h | Grow rowth th Stra Strate tegy O gy Ove vervi view

NASDAQ: DRIO 11

Continue to Add Members Upsell Products & Services Enter the Employer Market & Health Partners Expand Into Additional Countries Support Other Disease States Monetize The Data Over the Long-Term

Long-Term Near-Term 2017 2018 2019 and beyond Current offering Dario Engage services Other digital services Market Reach

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SLIDE 12

Dar ario ioHealt ealth | h | Grow rowth th Stra Strate tegy O gy Ove vervi view

Enter the Employer Market & Health Partners

  • Empower employees to better manage diabetes
  • Acquire new members in large numbers
  • Stickier member groups as cost is paid by employer
  • Licensing coaching plans integrated into health partner’s existing platforms

Dario Engage Services (2018-2019)

Expand Into Additional Countries

  • To date: regulatory clearance from TGA, Health Canada, FDA, CE
  • Launched in UK, Australia, Canada, Italy, USA, Netherlands, & Germany
  • Currently have access to 11% of the diabetes population globally
  • Easily expand footprint in Europe

Support Other Disease States

  • supporting multiple chronic conditions (Heart Disease, Obesity,

Prediabetes (84.1M), Pregnancy, Weight loss, Sport and more)

  • Significantly expands market opportunity

Other Digital Services (2019 and beyond)

Monetize on Data and AI

  • Collecting and analyzing over 31,000 data points per user per year
  • Currently have access to +1 billion data points
  • Start outreach and intervention campaigns
  • Monetize and analyze the vast pool of de-identified data

Add Members

  • Targeted digital marketing funnels
  • Leverage physician relationships
  • Expend sales channels
  • Utilize channel partners

Current offering (2018)

Upsell Products & Services

  • Coaching meaningfully increased compliance
  • In-app personal plans and digital coaching
  • Increases average revenue per member by $25 per month

NASDAQ: DRIO 12

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Dar ario ioHealt ealth | h | Execut ecutiv ive T e Team eam

An experienced management team with vast software, medical device and technology experience guided by a world class Board Of Directors and Scientific Advisory Board.

Zvi Ben-David

CFO

  • Mr. Ben-David has 25 years of financial and accounting experience, particularly with medical

device companies. Among his previous roles, he served as Corporate VP & CFO of Given Imaging, where he was a part of the founding team and also helped lead the start-up to a $65 million annual revenue commercial enterprise as well as its successful initial and follow-on public offerings.

Dror Bacher

COO

  • Mr. Bacher has more than 17 years of software business experience, including managing positions

in product development at both mobile and semi-conductor companies. Previously, he held numerous executive positions, including a leadership role at Amdocs, managing enterprise development programs.

Adiel Levin

Global Senior Director, Sales and Commercialization

  • Mr. Levin has 20+ years of channel sales, business development, strategy and leadership

experience in the telecommunications, financial services and health sectors, in both B2B and B2C. He has managed global sales teams, channel partners and distribution networks in the EMEA and APAC regions for telecom, healthcare and financial services industries.

Erez Raphael

CEO & Chairman

  • Mr. Raphael has over 20 years of systems and software development experience in various

industries including mobile, life science, medical device, health IT, mHealth and digital health solutions.

Yinon Amir

Head of Software

  • Mr. Amir brings vast experience in software development, engineering practices, digital

technologies, solution architecture and design, as well as large scale projects management and customer delivery management. Previously, he held senior management positions at Amdocs, a global leader in telecommunications customer experience and billing solutions.

Olivier Jarry

Strategic Advisor

  • Mr. Jarry has managed innovation at the crossroads of technology, healthcare and patient-

centricity for three decades on five continents. He has had several executive roles in life sciences multinationals such as leading the global Diabetes Care division of Bayer.

Shmuel Herschberg

Director, Marketing and User Engagement

  • Mr. Herschberg is a seasoned digital marketing executive with over 17 years of experience. He

possesses a unique blend of technical understanding coupled with strategic thinking and customer psychology. Previously he held a senior position at an interactive, direct-to-consumer marketing company where he was responsible for creating successful revenue streams.

Janice Baker

RDN, CDE

Janice Baker has been providing diet counseling and medical nutrition therapy since 1982, specializing in weight management, diabetes education, and cardiac risk reduction. A graduate of California Polytechnic State University, San Luis Obispo, Good Samaritan Hospital Internship, and National University, Janice also holds a Master’s Degree in Business Administration as well as a Bachelor of Science Degree in Dietetics and Food Administration. She is a Certified Nutrition Support Dietitian and has been a Certified Diabetes Educator since 1992. In 2012, Janice became Board Certified in Advanced Diabetes Management.

NASDAQ: DRIO 13

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Fina nanci ncial R Rev eview ew

NASDAQ: DRIO 14

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Dar ario ioHealt ealth | h | Financial H Financial Hig ighlig hlight hts

NASDAQ: DRIO 15

  • Subscription model yields highly recurring and visible revenues

– 62% users under recurring plans

  • Service is becoming an increasing contributor to revenues
  • Diversified revenue streams
  • Scalable model with meaningful operating leverage
  • Recently launched B2B (employers) strategy provides incremental market opportunity and

growth

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Dar ario ioHealt ealth | h | Quar uarter erly ly R Rev evenue enue

Consistent Revenue Growth

NASDAQ: DRIO 16

$67 $175 $273 $308 $568 $669 $728 $838 $1,007 $1,210 $1,375

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

(in thousands)

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Dar ario ioHealt ealth | h | Div iver ersified ified R Rev evenue S enue Stream eams

Revenue by Region - Q1:Q3 2017 Subscriptions Vs. One Time - 2017

38% 32% 30%

One timers-US Subscribers-US Reimbursement and Insurance Coverage

79% 21%

US Other

NASDAQ: DRIO 17

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Dar ario ioHealt ealth | h | Incr ncreas ease e Rev evenue enue p per er Mem ember er O Over er Tim ime

Long-Term Near-Term 2017 2018 2019 and beyond Current offering Dario engage services Other digital services Market Reach

Device and consumables

$25 per user/month

Coaching platform to employers and payers

$25 per user/month

premium services at

$5 per user/month

NASDAQ: DRIO 18

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Dar ario ioHealt ealth | h | U.S .S. M . Mark rket t Pote

  • tential – 5

5 Year ear Lo Lookout ut

Current offering Dario Engage services Other digital services Target year total Y/Y growth rate Market penetration

0.50%

$43 43 $37 37 $7 $88 88 77 77%

0.75%

$65 65 $55 55 $11 11 $132 132 92 92%

1.00%

$87 87 $74 74 $15 15 $176 176 103 103%

1.25%

$109 109 $92 92 $18 18 $220 220 112 112%

1.50%

$130 130 $111 111 $22 22 $264 264 120 120%

1.75%

$152 152 $129 129 $26 26 $307 307 127 127%

2.00%

$174 174 $148 148 $30 30 $351 351 133 133%

2.25%

$196 196 $166 166 $33 33 $395 395 139 139%

2.50%

$217 217 $185 185 $37 37 $439 439 144 144%

2.75%

$239 239 $203 203 $41 41 $483 483 148 148%

3.00%

$261 261 $222 222 $44 44 $527 527 153 153%

3.25%

$283 283 $240 240 $48 48 $571 571 157 157%

3.50%

$304 304 $259 259 $52 52 $615 615 161 161%

in $ M

NASDAQ: DRIO 19

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Dar ario ioHealt ealth | h | Stron tronge ger C r Capi pita talizati tion

  • n W

Well Pos

  • siti

tion

  • ned to

d to Support G pport Grow rowth th

NASDAQ: DRIO 20

Capit italiz lizatio ion T Tra ransform rmatio ion

v YE2017

Shares Outstanding

14,074,238

Warrants Outstanding

3,685,056

ESOP

2,554,299

Percentage of Insider Holdings

45.8%

Debt

  • Ca

Capita talizati tion H n Highl hlights hts

  • Insider holdings – 45.8%
  • 17.3% Held by institutions.
  • 9.5% is held by bo

board me d membe mbers s and mana nagem ement ent.

  • Ins

nsider er T Trans nsacti ctions ns - Board and

Management invested so far more then $3M into the company.

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SLIDE 21

Dar ario ioHealt ealth | h | Inv nves estment ent Hig Highlig hlight hts

  • Scalable diabetes management platform
  • Large and growing global market opportunity
  • Regulatory clearance achieved in several countries
  • Multiple growth opportunities
  • Experienced management team
  • Strong revenue growth

NASDAQ: DRIO 21

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Dar ario ioHealt ealth | h | Cont ntact act I Info nformat atio ion

Investor Relations

Westwicke Partners Tel: 1-443-213-0500 Dario@Westwicke.com

R&D Center

8 Hatokhen Street North Industrial Park Caesarea 389000 Israel

Headquarters

142 W 57th Street 11th Floor New York, NY 10019 USA partnershipgroup@mydario.com www.dariohealth.com

NASDAQ: DRIO 22