Syneron Medical Ltd. Investor Presentation. September 2013

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1 Syneron Medical Ltd. Investor Presentation September 2013

2 Safe Harbor For Forward Looking Statements Any statements contained in this document regarding future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Further, any statements that are not statements of historical fact (including statements containing "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including the risks set forth in Syneron Medical Ltd.'s most recent Annual Report on Form 20-F, and the other factors described in the filings that Syneron Medical Ltd. makes with the SEC from time to time. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, Syneron Medical Ltd.'s actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements. 2

3 Investment Highlights Growing aesthetic market for non-invasive procedures; Growing consumer demand and awareness of energy based, non-invasive aesthetic procedures Non-core market opportunity: recovering economy and improving financing A global leader in aesthetic devices with 29% worldwide market share 1 Platform aesthetic company with largest worldwide presence, in sales, distribution and service network across 90 countries capable of addressing largest and fastest growing segments of market Financially strong with diversified revenue growth drivers and improving margins Recurring revenue opportunities through profitable consumables and service business Investing in EBU segment and exciting growth markets, with focus on improving margins ~$263 million revenue 2 (29% recurring 3 ); $117 million in cash 4 ; No debt 1 Based on US publicly traded companies listed here (SLTM, CYNO, CUTR, ZLTQ); Professional Aesthetic Device Sector 2 Trailing twelve month revenue 3 Based on 2Q 2013 results in PAD segment 4 June 30, 2013 Balance Sheet 3

4 Drivers of Aesthetic Market Growth Increased global awareness, growing acceptance of cosmetic procedures Improved safety and efficacy and broader offerings of non-invasive procedures Growing middle class in high growth markets (BRIC countries) Longer life expectancy Social media / celebrity culture - younger patients Expanding revenue and profit opportunities 4

5 Leading Aesthetic Industry with PAD and EBU Applying technology, infrastructure and expertise to drive leadership in all aesthetic categories Professional Aesthetic Devices Emerging Business Units Established global brand reputations and proven clinical efficacy Leveraging global infrastructure and large installed base Multi billion opportunity in new high growth markets 35% revenue growth in % operating margin (2012 non- GAAP) Focusing on core and non-core market opportunities Leverages professional device technology and expertise Focused on improving margins 5

6 Global Medical Aesthetic Market is Expected to Grow 11.6% (in M$)* Annual Average 2011 Growth 2016 Growth Hair Removal Lasers 310 8% 455 PAD Vascular & Pigmented Lesions 220 9% 338 PAD Skin Rejuvenation % 626 PAD Physician Dispensed Skin Lighteners and Cosmeceuticals % 1,105 EBU Body Shaping & Skin Tightening % 641 PAD Sub Total 1,701 3, % Toxins 1,085 12% 1,912 Fillers 1,040 12% 1,833 Breast Implants 893 7% 1,252 Sub Total 3,018 4, % Grand Total 4,719 8, % *source: Medical Insight June

7 Leading Aesthetic Industry Professional Aesthetic Devices PAD Established global brand reputations and proven clinical efficacy Leveraging global infrastructure and customer base 10.4% operating margin (2012 non- GAAP) Focusing on core and non-core market opportunities 7

8 Breadth and Depth of Technologies Electro-Optical Synergy (elōs) Proprietary technology first and only combination of bi-polar radio frequency (RF) and optical energy (laser or light) for synergistic results Candela Lasers 40 years of innovation leadership Best-in-class laser products, Gold Standard in dermatology lasers Ultrasound: Proprietary Focused ultrasound technology destructs fat cells non-invasively for high growth/high demand body contouring Additional Technologies: Fractional RF Skin Lightening Teeth Whitening Transpharma RF microchannels for transdermal drug delivery eprime minimally invasive Fractional RF 8

9 Unmatched Global Footprint & Distribution Uniquely Positioned in High Growth Geographies Extensive and superior channel to market capability in over 90 countries Direct presence in 13 key markets Revenue split between North America and International is 33% and 67% respectively Unparalleled global distribution, service, and support capabilities across product segments 9

10 Syneron Growth Opportunity 1 - Using e-matrix Technology for Paradigm Shift in Syneron and Doctor Business Model Sublative Rejuvenation Attractive pricing and rapid ROI New revenue stream for core and non-core practices Non-invasively reduce acne scars and treat wrinkles and pigmentation Minimal downtime, solid results, high patient satisfaction A safer & more effective fractional alternative specifically for ethnic skin High GM consumable tip model Better than Botox and fillers (in pigmentation, scars, laxity) More affordable than Botox and fillers Significantly longer lasting than Botox and fillers Nothing injected into the skin skin rejuvenates itself 10

11 Adult Acne Scars Before Post 2 Treatments Photos: Dr. Ines Verner 11

12 Pigmentation and Acne Scars on Dark Skin Before Post 1 Treatment Photos: Stephen Bassett, MD 12

13 Syneron Growth Opportunity 2 Proprietary Non-Invasive Body Shaping Technology addresses a huge unmet market need Target market represents 2/3s of the worldwide population BMI1 of (Normal) and (Overweight) Liposuction is the 2nd most commonly performed aesthetic surgical procedure in U.S. (N=289,000) A rising demand for body contouring techniques More knowledgeable consumers Desire for natural looking solutions Preference of non-invasive methods that have short downtimes, less risk and are less costly Liposuction Market Consumers who want improvement in body shape but DON T want liposuction Source: National Health and Nutrition Examination Survey (NHANES). (1) The Body Mass Index (BMI) establishes a relationship between weight and height that is associated with body fat. BMI = (Weight in Pounds / (Height in Inches) 2 ) x 703 (2) The American Society of Plastic Surgery 2010 Statistics March,

14 Strong Shift Toward Non-Invasive Procedures (Procedures in millions) Invasive Procedures Non- Invasive Procedures (Procedures in millions) 12.0 Growth Rate = 919% M Growth Rate = 75% M 1.6M M Non-invasive procedures account for 82% and majority of growth Source: The American Society for Aesthetic Plastic Surgery 2011Statistics, March

15 Growth Opportunity 2 Body Shaping Worldwide market for non invasive body shaping techniques estimated at $304M (2011) with projected annual growth of >16% Non-invasive body shaping addresses three areas of concern: skin laxity, fat reduction, and cellulite.syneron competes in all three areas As the pioneer in non-invasive body shaping around the globe since 2005, Syneron -Candela is doing it again, with over a dozen powerful new features, VelaShape III sets the stage to master the performance of body treatments once again. Increased RF Power by a factor of 2.5 to 150W Single treatment with an average of 2.5cm abdominal circumferential reduction and 100% patient responders Intelligent feedback mechanisms: Real time tissue impedance measurements assures effective and safe energy delivery Real time temperature measurement to assure treatment results 7,000+ installed base 15

16 VelaShape III Clinical Results (42 patient trial) Average abdominal circumference reduction vs. time after a single treatment 3.5 Mean abdomen circumference reduction vs. time after treatment [cm] Baseline 4 weeks 7 weeks 10 weeks 16

17 VelaShape III Success Rate vs. Time (Single Treatment) Percentage of patients with circumferential abdominal larger than 1cm, 1.5cm and 2cm (42 patients clinical trial) 1 cm 1.5 cm 2 cm 100% 100% 80% 71% 80% [%] 60% 40% 20% 36% 27% 67% 55% 100% of patients saw a reduction of at least 1.5cm 10 weeks after a single treatment 0% 0% Baseline 4 weeks 7 weeks 10 weeks 17

18 Growth Opportunity 2 Body Shaping Treatment times are significantly shorter than other fat destructive technology (Consumable business model) Pain-free with rapid results through focused ultrasonic mechanical action specific to fat cells 700+ units installed base - Leverage Syneron s market position New U-Sculpt transducer is smaller and lighter, includes more pulses, facilitates faster procedures, and treats smaller areas Complementary technologies - creates sales bundling - technology integration opportunities 18

19 UltraShape Three Treatment Results Upper/Lower Abdomen Pre-Treatment 4 Weeks Post Treatment Reduction 4.7 cm upper, 5.4 cm lower abdomen Weight change -2.2Kg 19

20 The Ultrasculpt Transducer of Ultrashape 50% lighter Faster procedure Same clinical performance Lower cost of manufacturing Launch June 2013 Dr. Chris Ingelfield, Head, London Bridge Plastic Surgery Clinic 20

21 Leading Aesthetic Industry Applying technology, infrastructure and expertise to drive leadership in all aesthetic categories Emerging Business Units Multi billion opportunity in new high growth markets 35% revenue growth in 2012 Leverages professional device technology and expertise Focused on improving margins 21

22 Syneron Growth Opportunity 3 High Growth Emerging Markets Significant growth opportunities with improving margins, recurring revenue products Home Use Devices (HUD) Teeth Whitening HUD and professional Skin Lightening Projected $650M+ market in 2016 with average growth of 12.3% per year 1,2 Increased consumer desire for treatments at home Includes facial/skin rejuvenation, hair removal Blockbuster global market ~$5.5B Methods - white strips, professional treatments, whitening trays/gels Treatments - more effective and last longer Extraordinary global market ~$10B (~$1B professional market) Skin lightening widely used in Asia (~90% of market) Daily use product major recurring revenue opportunity 1 Manufacturer revenues are calculated as 50% of retail sales. 2 Source: Medical Insight, Jan

23 mē smooth The first and only at-home hair removal device that is FDA cleared and clinically proven to be safe and effective for all skin tones mē smooth The Face of America Uses revolutionary, patented ēlos technology Clinically proven safe and effective for all skin tones Fastest treatments Easy, intuitive application Gentle no nicks, stinging or snapping Over 10,000 me smooth units sold in 24 launch event in QVC 23

24 Pearl Teeth Whitening Home Use System Breakthrough patented ionic technology Pivotal clinical study (120 patients) demonstrated superior results >17,000 units sold in 24 hours in launch event on QVC 24

25 Tanda Zap Acne Device Combines blue light technology with sonic vibration and gentle warming Clears or fades mild to moderate acne blemishes within 24 hours $49 price point 25

26 elure Advanced Skin Lightening Advanced Skin Brightening Night Cream wins Essence Magazine Best in Black Beauty award Allure Magazine awarded elure 2011, 2012 and 2013 Best in Beauty Provides superior efficacy and speed of action Patent-protected until 2023 Strong clinical results and intellectual property Korean MFDS approval received in August 2013 and expecting further approvals in Asian markets 26

27 Financial Strength $117 million cash, no debt Focused on improving growth & profitability through sales force expansion and sales channels optimization, focusing on non-core market, product portfolio simplification and R&D focus Increased operating efficiencies, reducing expenses, and reducing head count of R&D marketing and G&A teams by 45 people in 2Q13 27

28 Second Quarter 2013 Highlights (Non-GAAP) Revenue of $68.8 million, up 1% YoY International revenue of $45.4 million, down 2% YoY North America revenue of $23.4 million, up 7% YoY Service and consumables represented 29% of PAD segment revenue Revenue negatively impacted by $1.1 million due to decrease in value of Yen Gross margin of 50.7% 1, down from 55.1% YoY, due to product channel mix in PAD and increased production costs for QVC launch Operating profit in Professional Aesthetic Device business of $4.3 million 1 (or operating margin of 7.2%); Decreased operating expenses in EBU Emerging Business Units revenue of $9.5 million, up 37.1% YoY and representing ~14% of total revenue Net income of $0.7 million 1, or $0.02 per share Reduced head count in R&D marketing and G&A teams by 45 people Managed expenses and maintained profitability 1 Non-GAAP figures exclude stock-based compensation, amortization and other non-recurring items. 28

29 Driving Profitable Growth Optimize sales coverage with added focus on non-core market Add targeted resources in North American and select international markets, including junior sales reps and aesthetic practice consultants to support sales team Improving North American financing environment, including for non-core customers Drive sales of high growth, high margin products; simplified product portfolio PAD elōs products: Sublative Rejuvenation, VelaShape, UltraShape, consumables EBU me smooth, Pearl Brilliant White, Tanda ZAP, elure Advanced Skin Lightening Focus R&D on high demand products/treatments Operational efficiencies and cost savings through tighter monitoring EBU to breakeven by year-end; considering strategic opportunities New management with proven track record to implement strategy 29

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