dario investor rodman conference september 10 2013 (drio) dr. oren fuerst

Corporate Presentation September 2013 Dr. Oren Fuerst, Executive Chairman

נגטיב� לוגו

LabStyle Innovations Corp. (DRIO: OTCBB)Smart and Integrated Solutions for Diabetics in a Mobile Age

Thursday, September 12, 13

Subtitle text

Disclaimer Regarding Forward-Looking Statements This presentation of LabStyle Innovations Corp. (the “Company”) and statements of the Company’s 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"). Words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions all denote forward-looking statements within the meaning of the Act. Factors that could cause or contribute to such differences include the Company’s compliance with regulatory requirements, the Company’s status as a new public company, the impact of current and any future competition, as well as other factors and risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results may differ significantly from those set forth in the forward-looking statements. The Company undertakes 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 Company management or its agents have been prepared by Company 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 the future performance of the Company. 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.



Labstyle Innovations (DRIO:OTCBB) Corporate Snapshot

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Delaware Company Founded 2011, based on IP from 2010Headquarters and Development (and IP) in Israel

-Share Price $2.65. Market Cap $53M (As of September 9, 2013)-Shares Outstanding 19.284M (Float ~ 11.5M shares)-Went public through S-1 in March 2013 -Raised $16M, including $10M in May 2013



Developer of Smart and Integrated Solutions for Diabetics in a Mobile Age



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A large and growing global market5

2013 2022

$12b

$27b(Up 170%)370m

diabetics

20-30%insulin dependent

70-100mPrimary initial target users

Global glucose self-monitoring market

ObesityAging population



Diabetes: A large and growing global market6

2011 2018

$37b

$72b

Global Diabetes (therapeutics devices and drugs) market

ObesityAging population

Text

2011 2030

10% CAGR

370m

550m

Number of Diabetics Worldwide

Source: Transparency Market Research, "Global Diabetes Devices Market and Diabetes Drugs Market - Industry Scenario, Trends, Analysis, Size, Share and Forecast, 2011 - 2018,"



Glucose self-monitoring devices have not changed much over the past years

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1990s 2000s



A bulky device that is cumbersome to carry around with you

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http://chocolateonmycranium.blogspot.com/2011/05/changes.html#.T8Yc05kthbo

Device

Lancer

Strips





Uninspiring design9

Not aesthetically pleasing

Poor quality materials

They all look the same

Poor ergonomics



Most data usability is lost after the measurement, no analysis and/or reporting

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Your last measurement



Current attempts combine hardware rather than creating a new customer experience

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Phone + meter Meter + lancer



Enter Dariowww.mydario.com

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Enter Dario13

Bulky

Cumbersome

Uninspiring

Dumb device

Compact

Simple

Beautiful

Personal data



Integrated Diabetes Management System14

Smartphone-driven glucometer

Lancing device and strip container

Data management, alerts, reminders

Analytics and social interaction tools

Proactive Care capabilities

Patent-pending technology

Aligned w/stakeholders motivations



Labstyle Innovations Investment Highlights15

Huge Diabetes patient population. $12bn test strips market ($37bn diabetes market, including therapeutics) with very little real innovation

Dario: First all-in-one stylish diabetes management system with glucose measurement device, data analytics, data sharing and social features



נגטיב� Usability and accuracy studies-לוגו-Signed UK, Belgium, Italy distribution agreements-Near term milestones:

-CE Mark expected 2013-Software launch on Appstore Q4

-Reimbursable, recurring, test strips revenue based model-expanding into a hub of solutions for Diabetics (e.g. integration with smart insulin pens; clinical studies; product market testing)




More than just blood glucose levels16

Blood glucose

Food Intake, Physical Activity

Insulin Recommendations

Analysis, learning, Sharing



Develop a detailed understanding of your blood sugar level

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Dramatically improving information flow among patients and care givers

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Physician Dietitian

NurseOthercare

givers

PatientREAL-TIME DATA

HISTORICAL DATA

TAILOR-MADE DATAANALYZED DATA



Big Data and Proactive Care at its best19

Physician Dietitian

NurseOthercare

givers


HISTORICAL DATA


•Pattern Recognition to yield personalization of Insulin Regimen

•New regimen tested in real time

•Real-Time clinical and marketing studies (Recruitment; Data capture; Analysis)

•Prediction of Diabetes complications and the need for immediate actions



Community at its best- Sample applications 20

Physician Dietitian

NurseOthercare

givers


HISTORICAL DATA


•User Generated Content (tips; experiences)

•Gamification

•Personalization

•Location Based Recommendations



Revenue model highlights21

Combining direct to consumers and distributors model

Test strips are typically fully reimbursed; Alignment with HC Insurance Agenda

Data enables a natural expansion into insulin delivery (e.g. smart insulin pen)

Initially: Recurring, high margin revenue from sales of strips





Platform enables revenue from clinical studies and data (e.g. pharma; food)

User base enables product partnerships (e.g. pharma; food)




• V

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Dario- Glucose Monitoring in a Fun and Engaging Way


http://www.youtube.com/watch?v=he3aa34UIrI





Promising regulatory outlook 2013-201426

•Anticipated 510(k) Class hardware&software

•Clarified guidelines for software / glucose meters

• In-vitro diagnostics•CE Mark anticipated 2013•Additional jurisdictions to

follow (e.g. India, Brazil)


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Experienced management team28

Oren Fuerst, PhDExecutive Chairman

Erez RaphaelCEO & President

Tal GivolyCTO

Seasoned medtech entrepreneur and investorFormer faculty Yale and Columbia Business SchoolExtensive experience in medical devices and data mgt

Former Chief Scientist of Amdocs (NYSE:DOX)25+ years in software developmentSoftware inventor with 25+ granted patents

Prof. Itamar Raz MDHead of SAB

Head of Diabetes Unit, Hadassah Medical CenterHead, Israel National Council of DiabetesPresident, Israel Diabetes Research Group

20 years of experience in product design, development and commercialization. Formerly with Amdocs (NYSE: DOX) and Nokia-Siemens

Shosh FriedmanVP Clinical and Regulatory

Affairs

Former SVP Clinical and Regulatory Affairs at Given Imaging (NASDAQ:GIVN). 20+ in clinical, regulatory affairs and QA systems.



Board of Directors29

Oren Fuerst, PhDCo-Founder

Malcolm Hoenlein

Prof. Nahum Melumad PhD

Adam Stern

Seasened entrepreneur and investorFounder of Teval Global & Strategic ModelsFormer faculty Columbia Business School

CEO, Executive Vice-Chairman, Conference of Major American Jewish OrganizationsDirector, Council of Foreign Relations

Professor of Accounting and Business Law, Columbia Business SchoolConsultant to J&J, Bristol-Myers, GE

Head of Private Equity Banking at Aegis Capital and CEO of SternAegis VenturesDirector inVivo, Organovo, Prolor

David Weintraub MDCo-Founder

Co-founder, Medical Director Ramat-Aviv MCSerial entrepreneur and inventorFounder of Versamed (acquired by GE)

Itamar Raz MD Head of Diabetes Unit, Hadassah Medical CenterHead, Israel National Council of DiabetesPresident, Israel Diabetes Research Group



Labstyle Innovations Investment Highlights30

Huge Diabetes patient population. $12bn test strips market ($37bn diabetes market, including therapeutics) with very little real innovation

Dario: First all-in-one stylish diabetes management system with glucose measurement device, data analytics, data sharing and social features



נגטיב� Usability and accuracy studies-לוגו-Signed UK, Belgium, Italy distribution agreements-Near term milestones:

-CE Mark expected 2013-Software launch on Appstore Q4

-Reimbursable, recurring, test strips revenue based model-expanding into a hub of solutions for Diabetics (e.g. integration with smart insulin pens; clinical studies; product market testing)



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Thank you

