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DarioHealth Corp. Personalized Health Management NASDAQ: DRIO

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Page 1: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth Corp.Personalized Health Management

NASDAQ: DRIO

Page 2: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

Forward Looking Statements

• 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

Page 3: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Investment Highlights

• 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

Page 4: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

40Employees

New YorkHeadquartered

2011Founded

7Countries with users

4Regulatory bodies approvals

5Countries fully reimbursed

DarioHealth | At a Glance

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

~$5m2017 Revenue

Quarterly Revenue

$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 th

ousa

nds)

Presenter
Presentation Notes
Inbal – the revenue should include also 2015
Page 5: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Geographical Market Overview

NASDAQ: DRIO 5

425mPeople with diabetes (2017)

693mPeople with diabetes projected by 2045

Germany Since Q3 2017

NetherlandsSince Q3 2016

Insurance Coverage

USA Since Q2 2016 Partial Coverage

Italy Since Q1 2016

Insurance Coverage

Canada Since Q4 2015

Insurance Coverage

Australia Since Q3 2015

Insurance Coverage

UKSince 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

471mPre-diabetes projected by 2035*

* Prediabetes diagnosis and treatment: A review, by Nihdi Bansal, 15 Mar 2015

Page 6: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Diabetes Monitoring Shifting to a Focus on Personalization

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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7

DarioHealth | Proven Reduction in Healthcare Costs*

Total annual average medical costs

$11,000 - $13,700

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 annual average diabetes-specific costs

$7,900

Studies have shown that Dario’s 1% reduction in HbA1c yields substantial

savings

$80 - $100 per patient per month.

$35.8 billion of potential savings to the U.S. healthcare system.

Dario Savings

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8

DarioHealth | Dario’s Managed Care Solution

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

Presenter
Presentation Notes
Lets show iPhone X and not iPhone 5
Page 9: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | The Dario Engage Platform

Dario Engage Platform provides full coverage, scalable

healthcare solutions that are easily customized to

integrate with any clinical programs covering all facets

of diabetes management and care:

Type1, Type2, gestational diabetes, and prediabetes.

9Engagement

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

Page 10: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

BT Sync

Dedicated

Offline

Engagement

Monitoring Coaching

Management

DarioHealth | Competitive Landscape

10

DarioHealth is the only comprehensivediabetes management platform

Page 11: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Growth Strategy Overview

NASDAQ: DRIO 11

Continue to Add Members

UpsellProducts &Services

Enter theEmployer Market& Health Partners

ExpandInto

AdditionalCountries

SupportOther

DiseaseStates

MonetizeThe DataOver the

Long-Term

Long-Term Near-Term

2017 2018 2019 and beyond

Current offering

Dario Engage services

Other digital services

Mar

ket R

each

Page 12: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Growth Strategy Overview

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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DarioHealth | Executive Team

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-DavidCFOMr. 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 BacherCOOMr. 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 LevinGlobal Senior Director, Sales and CommercializationMr. 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 RaphaelCEO & ChairmanMr. 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 AmirHead of SoftwareMr. 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 JarryStrategic AdvisorMr. 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 HerschbergDirector, Marketing and User EngagementMr. 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, CDEJanice 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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Financial Review

NASDAQ: DRIO 14

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DarioHealth | Financial Highlights

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

Page 16: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Quarterly Revenue

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 th

ousa

nds)

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DarioHealth | Diversified Revenue Streams

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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DarioHealth | Increase Revenue per Member Over Time

Long-Term Near-Term

2017 2018 2019 and beyond

Current offering

Dario engage services

Other digital services

Mar

ket R

each

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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DarioHealth | U.S. Market Potential – 5 Year Lookout

Current offering Dario Engage services Other digital services Target year total Y/Y growth rateM

arke

t pen

etra

tion

0.50% $43 $37 $7 $88 77%0.75% $65 $55 $11 $132 92%1.00% $87 $74 $15 $176 103%1.25% $109 $92 $18 $220 112%1.50% $130 $111 $22 $264 120%1.75% $152 $129 $26 $307 127%2.00% $174 $148 $30 $351 133%2.25% $196 $166 $33 $395 139%2.50% $217 $185 $37 $439 144%2.75% $239 $203 $41 $483 148%3.00% $261 $222 $44 $527 153%3.25% $283 $240 $48 $571 157%3.50% $304 $259 $52 $615 161%

in $ M

NASDAQ: DRIO 19

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DarioHealth | Stronger Capitalization Well Positioned to Support Growth

NASDAQ: DRIO 20

Capitalization Transformation

vYE2017

Shares Outstanding 14,074,238

Warrants Outstanding 3,685,056

ESOP 2,554,299

Percentage of InsiderHoldings

45.8%

Debt ---

Capitalization Highlights

• Insider holdings – 45.8%

• 17.3% Held by institutions.

• 9.5% is held by board members and management.

• Insider Transactions - Board and Management invested so far more then $3M into the company.

Page 21: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Investment Highlights

• 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

Page 22: DarioHealth - Investor Presentationdariohealth.investorroom.com/download/DRIO+-+Investor... · 2018. 1. 7. · Q1 2015. Q2 2015. Q3 2015. Q4 2015. Q1 2016. Q2 2016. Q3 2016. Q4 2016

DarioHealth | Contact Information

Investor RelationsWestwicke Partners

Tel: 1-443-213-0500

[email protected]

R&D Center 8 Hatokhen Street

North Industrial Park

Caesarea 389000

Israel

Headquarters 142 W 57th Street

11th Floor

New York, NY 10019

USA

[email protected]

www.dariohealth.com

NASDAQ: DRIO 22