Investor Presentation May 2018 Forward-Looking Statements & - - PowerPoint PPT Presentation

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Investor Presentation May 2018 Forward-Looking Statements & - - PowerPoint PPT Presentation

Investor Presentation May 2018 Forward-Looking Statements & Disclaimer This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the


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Investor Presentation

May 2018

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Forward-Looking Statements & Disclaimer

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to, among other things, the future performance of Sientra that are based on management's current assumptions and expectations of future events and trends and involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements regarding Sientra's ability to successfully commercialize its products, market acceptance of its products, the planned acquisition of Miramar Labs, Inc. which is the subject of this presentation and the success thereof, market opportunities and ability to achieve expected growth, sales and financial results, the Company’s continued efforts to secure a stable manufacturing supply chain that ensures uninterrupted access to its breast implant products, and the experience of tis aesthetics sales force are subject to risks and uncertainties. The Company's business, strategy, operations or financial performance, and actual results may differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance. There can be no assurance that the acquisition of Polytech will be completed as currently contemplated, or at all. In addition, there can be no assurance that intended benefits of the acquisition, including any projected pro forma operating results, will be realized on the timetable currently estimated, or at all. All statements other than statements of historical fact are forward-looking statements. The words ''believe,'' ''may,'' ''might,'' ''could,'' ''will,'' ''aim,'' ''estimate,'' ''continue,'' ''anticipate,'' ''intend,'' ''expect,'' ''plan,'' or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identifyestimates,projectionsand other forward-lookingstatements. This presentation includes estimated projections of future operating results. These projections were not prepared in accordance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants or the Public Company Accounting Oversight Board for preparation and presentation of financial projections. This information is not fact and should not be relied upon as being necessarily indicative of future results; the projections were prepared in good faith by management and are based on numerous assumptions that may prove to be wrong. Important factors that may affect actual results and cause the projections to not be achieved include, but are not limited to, risks and uncertainties relating to the company and other factors described under “Risk Factors” sections of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q or Current Reports on Form 8-K and “Forward-Looking Statements.” The projections also reflect assumptions as to certain business decisions that are subject to change. As a result, actual results may differ materially from those contained in the estimates. Accordingly, there can be no assurancethat theestimateswillbe realized. Management is using non-GAAP financial measures in this presentation because it considers them to be important supplemental measures of the Company’s performance. Non-GAAP financial measures should be considered in addition to, not as a substitute for, net income, total debt or other financial measures prepared in accordance with

  • GAAP. The Company’s methods of determining these non-GAAP financial measures may differ from the methods used by other companies for these or similar non-GAAP

financialmeasures.Accordingly,these non-GAAP financialmeasuresmaynot be comparableto measuresused by other companies. This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other industry

  • data. This presentation also contains estimates and information from the management of Polytech relating to market position and financial data. These data involve a

number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and

  • ther industry data generated by independent parties and contained in this presentation and, accordingly, it cannot guarantee their accuracy or completeness. In addition,

projections, assumptions and estimates of its future performance and the future performance of the industries in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. In addition, the industry in which we operate is subject to a high degree of uncertainty and risk due to variety of factors, including those described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. These and

  • ther factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by Sientra. Undue reliance should not be

placed on the forward-looking statements in this release, which are based on information available to the Company on the date hereof, and except to the extent required by law,Sientraassumes no obligation to update such statements.

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▫ Differentiated technology for 2 highly attractive

market segments

▫ Highly experienced and proven aesthetic sales force leveraging industry leading plastic surgeon

relationships

▫ Significant cross-selling potential with diversified

product portfolio and sales channel providing

multiple growth opportunities

▫ Deep management team with extensive high

growth aesthetic company experience

A diversified aesthetics company poised for expansion within new and existing markets

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Sientra Team

senior leadership team

Charlie Huiner Chief Operating Officer & SVP Corporate Development & Strategy Key Experience: Inamed (Allergan) Patrick F. Williams Chief Financial Officer, SVP & Treasurer Key Experience: Nuvasive, Zeltiq

205total employees*

corporate: 108 sales managers : 17 sales reps : 80

As of March 31, 2018

Jeffery Nugent Chairman & CEO

Key Experience: J&J, Neutrogena, Revlon, Bioform, Precision Dermatology

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Launching the “New Sientra” in 2018

Breast Products miraDry

corporate: 50

  • Re

Re-launching nching full-sca scale le breast implants nts busine iness

  • Driving

ing deeper within in reconstruc ruction ion market with h tissue expand nder er portfo folio io

  • Re

Re-brand nding ing bioCor

  • rneu

neum

  • Expandi

nding ng sales es force ce

  • Launchin

ching g new fresh sh protoco col

  • Updating

ing sales es & m market keting ng strategie egies s with proven en team

Significant Cross-Selling Opportunities

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Sientra U.S. Sales & Marketing Organization

Operating Room Focus Procedure Room Focus 39 Plastic Surgery Consultants 6 Multi Specialty Consultants 19 U.S. Capital Sales Reps 14 U.S. Consumable Sales Reps ~15 International Reps

Breast Products miraDry

As of March 31, 2018

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Breast Products

FY2017 17 Net S Sales - $31.5 5 Million

  • n*

~$70 700 0 Million

  • n Market Opport
  • rtunity

unity**

**

Breast Implants Tissue Expanders Q416 bioCorneum Q216

*Excl cludes miraDry Dry net sales **Breast product cts market opportunit ity y refl flect cts Comp mpany y estim imates and American Soci ciety y of Plastic Surgeons (ASP SPS) S) and American merican Soci ciety y for Aesthetic ic Plastic ic Surgery y (ASAP SAPS) proce cedure data

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Breast Market Opportunity

Market

($ millions)

Addressable Market Opportunity

U.S. Cosmetic Breast*

$360

Scar Management

$30

U.S. Recon Breast

$120

U.S. Tissue Expanders

$160

U.S. PS Regen Recon (ADM + Fat Grafting)

$370

Canada Breast Aesthetics

$40

OUS/OCAN Breast Aesthetics

$400 Global Surgical Aesthetics:

~$1,500

US cosmetic breast aesthetics business: elective, cash-pay, private practice and solely board certified plastic surgeons

*Cosme metic ic breast market size exclu ludes $40 mill llio ion sales to non-board certifie fied plastic surgeons that Sie ientra does not support. Source ce: : Market size zes represent comp mpany estima imates.

Current Markets Potential Markets

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Compelling Clinical Results

Largest long-term, peer-reviewed competitive data comparison confirms the safety and durability of Sientra implants Complication/Event Sientra 10-year

(N=1116)

Mentor10-year

(N=552)

Allergan 10-year

(N=455)

Rupture (MRI cohort)

8.5% 24.2% 9.3%

Capsular Contracture III/IV

12.9% 12.1% 18.9%

Number of Implants 2230 1102 908 MRI Cohort Patients 398 202 158

Sources: 1) Stevens WG, Calobrace MB, Harrington J, Alizadeh K, Zeidler KR, d'Incelli RC. Ten -Year Core Study Data for Sientra's Food and Drug Administration Approved Round and Shaped Implants with Cohesive Silicone Gel. Plast Reconstr Surg. 2018 Apr;141(4S):7S-19S. 2) https://hpr-rps.hres.ca/reg-content/summary-basis-decision-medical-device-detailOne.php?lang=en&linkID=SBD00412

Risk of Key Complications Following Primary Augmentation:

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▫ Received full FDA approval of Vesta U.S. based manufacturing facility in April 2018 ▫ Began manufacturing finished goods of highest demand products in early October 2017 ▫ Adding new sizes approved by FDA in late 2016 for a total of ~400 unique implants ▫ Initiating marketing activities and comprehensive go to market strategy

*Vesta is a subsidiary of The Lubrizol Corporation.

Positioned for Growth Post FDA Approval

Rampin ing g to Full l Scale e Re-la laun unch ch Expect cted ed in 2H18

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*Vesta is a subsidiary of The Lubrizol Corporation.

Breast Implant Manufacturing Partnership

▫ Berkshire Hathaway subsidiary located in Franklin, WI ▫ Experienced silicone device manufacturing capabilities ▫ Approximately 17,000 sq sq/ft ft dedicated to Sientra implants ▫ Scalable capacity to meet Sientra’s supply needs

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Breast Implant Relaunch: Steps Forward

Relaunch & Grow Market Share

Penetrate Physician Resident Programs Launch Best in Class Warranty and Opus™ Rebranding Provide Samplings & Trials to Drive Demand Aggressively Promote 10 year Study Data Expand Call-Points Beyond Precision Controlled Launch Targets

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miraDry

FY2017 17 Net Sales -$15. 5.2 2 Milli lion

  • n*

(Full l Year Proforma) ma)

U.S. Addressable ble Market - 15 Million ion Patients ts**

Hair of all colors Odor Sweat

ONLY non-invasive treatment FDA cleared for reduction of underarm

*Incl cludes FY2017 017 GAAP AP miraDry Dry net sales of $5.1 mill llio ion post acquisit itio ion **Source: miraDry Inc. Quantitative survey of 2,265 U.S. consumers, 18-75, HHI > $35,000

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Significant U.S. Market Opportunity - Consumable

~37M

U.S consumers bothered by sweat

~15M

U.S. consumers interested in miraDry

~27M

U.S consumers bothered by sweat in the underarm

The Market for Sweat Controlling Products is Large and Highly Underpenetrated Represents U.S. consumable market opportunity of ~$6 Billion*

Source: miraDry Inc. Quantitative survey of 2,265 U.S. consumers, 18-75, HHI > $35,000 * Company estimates based on $400 bioTip pricing across 15M US consumers

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Significant U.S. Market Opportunity - Capital

Represents U.S. capital equipment market opportunity of ~$700 Million* OUS opportunity approximately the same size

Source: miraDry Inc. Quantitative survey of 2,265 U.S. consumers, 18-75, HHI > $35,000 * Company estimates based on # of practices in U.S. & ~$70k net sales price for capital

~10K

U.S. aesthetic practices includes core & non-core

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Driving New Patients into Aesthetics

Source: miraDry Inc. Quantitative survey of 2,265 U.S. consumers, 18-75, HHI > $35,000

New Patients Diverse Interest Younger Patients interested miraDry patients are aesthetic neophytes consumers concerned with excessive sweat are younger than 40 60% female : 40% male – broad market interest from both men and women

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miraDry Clinical Validation

DRI DRI-UP Study: Prospective, Multi-Center, Randomized, Blinded

HDSS* Response at 30 Day Follow-Up / ITT Population p-value = <0.001

Summary of Results

120 120 Subj bject cts Sham am Group

  • up (N=39)

N=39) Trea eatme tment nt Group

  • up (n=81

=81) Failu ilure 18 (46.2 6.2%) 9 (11.1 11.1%) Succe cess 21 (53.8 3.8%) %) 72 (88.9 8.9%) %) 95% CI [38.2%, 8.2%, 69.5%] .5%] [82.0%, 2.0%, 95.7%] .7%] Effica ficacy y Measur asure Follow llow-up p visit it time me from rom last t treatme eatment sessi sion

  • n

30 day 3 month

  • nth

6 month

  • nth

12 month

  • nth

% o

  • f subj

bjects ts with th HDSS SS reduct eductio ion n to score re 1 or 2* 28/3 /31 1 = 9 90.3% .3% [74.3, 4.3, 98.0 .0] 29/3 /31 1 = 9 93.6 .6% [78.6, 8.6, 99.2 .2] 28/3 /31 1 = 9 90.3% .3% [74.3, 4.3, 98.0 .0] 28/3 /31 1 = 9 90.3% .3% [74.3, 4.3, 98.0 .0] Patie ient nt satis isfa fact ction ion: : % o

  • f

subjects rating “very satisfied”

  • r “somewhat satisfied” (top 2
  • ut of 5 choic

ices) es) 27/3 /30 0 = 9 90% 27/2 /28 8 = 9 96% 25/2 /27 7 = 9 93% 23/2 /26 6 = 8 89%

*Hyperhidrosis Disease Severity Scale: Quality of life measurement for hyperhidrosis ranging from 1 (sweating not noticeable) to 4 (sweating intolerable)

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miraDry: Proven Aesthetic Industry Model

miraDry Capital System

▫ Standard service agreement ▫ Listing price U.S. Price $95k ▫ 50% - 55% gross margin

miraDry Consumable bioTip

▫ Per procedure consumable ($400 for two underarms) ▫ Practice Development Managers help drive patient volumes ▫ ~90% gross margin

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miraDry Fresh™ Treatment Protocol

Goal: reduce procedure time to >1 hour and simplify delivery to drive adoption across all specialties Key Drivers: 1.Faster overall procedure time

➢ Utilize multi-injector needle array* with lower gauge needles to deliver high volume anesthesia ➢ Reduce post cool time ➢ More efficient, simpler and more comfortable

2.Redesign & simplify treatment templates used to guide procedure

➢ Reduce number of individual templates ➢ Design for intuitive use

3.Update user interface to allow clinicians an easier process to unlock higher energy options & decrease post-treatment cool down time

➢ Improve efficacy and single treatment success ➢ Maintain strong safety profile

*Submitted 510(k) approval

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miraDry: A Substantial Growth Opportunity

Jan 2018

▫ Profitable for physician practice and

affordable for patients

▫ Global commercial footprint with over 1,000

systems sold and 125,000 biotips sold *

▫ Addressable US market of >15 million

patients

▫ High margin consumables >40% of net sales ▫ No significant competition ▫ Strong clinical data with over 10 clinical studies, 5 white papers & 7 peer-reviewed papers 90%

*Reflects company information as of 3.31.2018

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Balance Sheet Position

As of 3/31/18 Cash Balance* $16.1M Outstanding Term Debt $25.0M

*Does not include ~$108M in net proceeds from recently completed follow-on common stock offering nor does the figure include $10M of cash from the draw down of the Company’s remaining tranche of term debt following FDA PMA supplement approval.

Additional Debt Accessible Within Existing Facility Specified Net Sales Milestone $5.0M

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Historical Net Sales

▫ Voluntary hold on implant sales beginning Q4 ‘15 ▫ Controlled commercial relaunch Q1’16 ▫ Miramar Labs acquisition Q3’17 ▫ PMA approval of Vesta Facility Q2’18 ▫ Implant supply scaling into 2H18

Voluntary Hold Controlled Implant Re-Launch

$10.7 $12.1 $12.4 $14.2 $9.9 $1.5 $1.5 $6.2 $6.5 $6.5 $7.5 $8.2 $7.7 $8.2 $8.5 $2.1 $2.9 $6.1

Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18*

miraDry Breast Products

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Building ng a global al aest sthetics hetics co compan any

Why own Sientra today?

Innovative vative tech chnology

  • logy & differentia

entiated ted product cts/ma s/marke ket Mu Multiple ple growt wth h drivers s in 2018 and beyond nd in breas ast t product cts s & miraDry Dry segments ents Transiti nsitionin

  • ning

g to growt wth h w/ w/ adjace jacent nt product cts s & diversi rsifyi fying ng product ct po port rtfoli folio

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THANK YOU