syneron medical ltd. investor...

Syneron Medical Ltd.Investor Presentation

November 2014

Safe Harbor For Forward Looking StatementsAny statements contained in this presentation regarding future expectations, beliefs, goals, plans orprospects constitute forward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. 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-lookingstatements. There are a number of important risks and factors that could cause actual results orevents to differ materially from those indicated by forward-looking statements in this presentation,including the risks set forth in Syneron Medical Ltd.'s most recent Annual Report on Form 20-F, andthe other factors described in the filings that Syneron Medical Ltd. makes with the SEC from time totime. If one or more of these risks or factors materialize, or if any underlying assumptions proveincorrect, Syneron Medical Ltd.'s actual results, performance or achievements may vary materiallyfrom any future results, performance or achievements expressed or implied by the forward-lookingstatements in this presentation.

Non-GAAP Financial MeasuresThe following presentation includes certain "non-GAAP financial measures" as defined inRegulation G under the Securities Exchange Act of 1934. A schedule is included in the company’sQ3 2014 press release, which reconciles our results as reported under General AcceptedAccounting Principles and the non-GAAP financial measures included in the following presentation.

2

Syneron at a Glance• A global leader in medical

aesthetic devices

• Growing aesthetic market and consumer demand for energy based non-invasive procedures

• Largest worldwide presence in sales, distribution, service network and installed based

3

1. Superior technology for non invasive Fat Destruction (UltraShape) and Body Shaping (VelaShape – 7,000 units sold WW)

2. Focus on high margin recurring revenues

- UltraShape’s new business model for NA

- Grow recurring revenue share from 30% in 2013 to 50% in 2017

3. Significant expansion and optimization of NA sales force, focused on selling high margin products

4. PicoWay breakthrough technology and immediate availability in USA, Europe and key countries in Asia

5. Global Joint Venture with Unilever for the consumer market

6. CoolTouch leading products for lucrative leg vein market with recurring revenue strategy

7. elure™ skin lightening opportunity

1 Based on US publicly traded companies listed here (CYNO, CUTR, ZLTQ, LMNS); Professional Aesthetic Device Sector

2 Pro-forma, excluding Syneron Beauty; trailing twelve month revenue

3 Based on FY2013 results 4 September 30, 2014 Balance Sheet

~$242M Revenue² (30% Recurring³)

~$100M in Cash4; No Debt

~30,000 Active Customers

28% Worldwide Market Share¹

Drivers of Profitable Growth

4

Why is Non-Invasive Aesthetic Medicine Growing?

The doctor can take a patient from

To thisThis

WITH NO SURGERY, MINIMAL DOWN-TIMEAND A HIGH DEGREE OF PREDICTABILITYProcedure performed with Syneron’s ePrime™ device

Photos: Macrene Alexiades, MD

5

Why is Non-Invasive Aesthetic Medicine Growing?

The doctor can take a patient from

To thisThis

WITH NO SURGERY, MINIMAL DOWN-TIMEAND A HIGH DEGREE OF PREDICTABILITYProcedure performed with Syneron’s UltraShape™ device

Photos: Wendy Tink, MD

6

0.0

4.0

8.0

12.0

6.0

10.0

2.0.939M .741M

1.88M

7.6M

1997 2013

Non- Invasive ProceduresInvasive Procedures

0.0

4.0

8.0

12.0

(Procedures in millions)

6.0

10.0

2.0

1997 2013

CAGR= 15.6%

Source: The American Society for Aesthetic Plastic Surgery 2014

Non-invasive procedures account for 84% and majority of growth

Strong Shift Toward Non-Invasive Procedures

(Procedures in millions)

CAGR= 4.4%

7

Fat Destruction and Body Shaping Market Opportunity

8

US Potential Market for Body Shaping Procedures¹

¹ 2013 American Heart Association, Inc.² 2013 Census estimates the US population 20 years and older to be 233M³ 2013 Census estimates that 22.74% of the adult population in the US has Personal Income of $50,000 or above4 Syneron proprietary consumer research, 2012

KEY (Based on BMI(1))BMI of 30 or above is obeseBMI of 25-30 is overweightBMI of 18.5-25 is normal weightBMI of 18.5 or lower is underweight

Target Population²100 million

33.5%Obese

32.6%Overweight

33.8%Normal or Underweight22.7M with income of >$50,000³

33.8%Normal or Underweight

In a survey of 1,045 women in NA4 56% indicated interest in non-invasive fat destruction procedures

Total Addressable Market in the US: 12.7M Patients

9

Physician Qualitative Research Reveals

Research Takeaway• Pain Free represents advancement over existing technologies and an opportunity to tap into growth of body shaping

category.

Supporting Quotes• “Over 75% of patients come in to my office and immediately ask “How much is it going to hurt?" "100% of patients ask

about downtime."• “Pain-free with no downtime, it’s effective and totally believable.”• “Pain-free permanent fat removal…BOTTOM LINE!”

Source: Syneron proprietary consumer survey 2014.

The importance of the Pain Free advantage

The importance of Technological Advancement

Research Takeaway• UltraShape’s technological advancement is seen as a powerful differentiator. • UltraShape enhances practice stature and overall competiveness in the body shaping landscape. • UltraShape’s differentiating technology is seen as an influential force that ignites customer demand.

Supporting Quotes• “Patients want to find something new, so you need to be ahead of the curve”• “You want to be seen as experts in the field.”• “I’m an entrepreneur. This gives me an edge over other practices and also shows that you’re giving patients the latest

technology.”

10

Body Shaping is a Significant Growth Driver in The Aesthetic Device Market Place

Body Shaping is one of the most profitable businesses, second only to toxins & fillers

Hair removal Skinrejuvenation

VeinReduction

Tattooremoval

Pigmentedlesions

Skintightening

Body shaping

44%Planned Purchasing of New Equipment in 2014

Medical Insight Inc., The Annual Aesthetic Practice Survey January 2014 11

Holistic Approach to Body Shaping Treatments: Fat Cell Destruction, Skin Tightening and Cellulite

Broad Body Shaping Portfolio

12


Targeting connective tissue

Targeting and destroying fat


13

UltraShape® Pulsed Focused Ultrasound (PFU)Targets & damages subcutaneous fat

Immediate Results

Visible fat reduction results can be seen as soon as 2 weeks post 1st treatment

Clinically Documented Reduction

Average reduction of 2.5-6.3 cm post 3 treatments

Flexible Treatments

Not restricted by shape and size of hand-piece

Quick Treatments for Enhanced Patient Throughput

Average full abdomen treatment – less than 1 hour

Comfortable Treatments

No Pain, no side effects, no need for numbing or anesthesia

14

Control Immediately post single tx

Superior Technology for Non Invasive Fat DestructionImmediate Fat Cell Destruction!

UltraShape Technology, In-Vivo Porcine Model: Acute Micro EffectsBrown SA, Greenbaum L, Shtukmaster S, Zadok Y, Ben-Ezra S, Kushkuley L. Characterization of nonthermal focused ultrasound for noninvasive selective fat cell disruption (lysis): technical and preclinical assessment. Plast Reconstr Surg. 2009 Jul;124(1):92-101

15

X 40X 40


Superior Technology for Non Invasive Fat DestructionImmediate Fat Cell Destruction!

Control Immediately post single tx

16

Intact Nerves

X100

Intact Blood Vessel

Fat Cell Destruction

Highly Selective!


Superior Technology for Non Invasive, Immediate Fat Destruction

17

Treated Area: AbdomenFat Layer Thickness: 4.9 cm

Treated Area: AbdomenFat Layer Thickness: 3.8 cm

Fat Thickness Reduction: 1.1 cm Circumference Reduction: 4.5 cm

Leal H. et al, Procedures in Cosmetic Dermatology (book); Focused Ultrasound for Fat Reduction: Ultralipotripsy. pp 107-121 (2010)

UltraShape MRI Measurement of Fat Thickness

Baseline Post 3 Tx

Superior Technology for Non Invasive, Immediate Fat DestructionExceptional Efficacy!

18

1Published in peer-reviewed journal 2Presented in scientific conference 3Data on file

13 published studies with more than 900 subjects!

Investigator PublicationYear

Patient Population

Avg. Circumference Reduction Results

Teitelbaum S. et al1 US, UK, Japan 2007 164 2.0 cm (1 Tx) 82% > 0.5 cm circumference reduction

Leal H.2,3 Monterrey, Mexico 2009 24 3.0-3.4 cm (1 combo Tx) 96% > 1.5 cm circumference reduction 100% patient satisfaction

Moreno-Moraga J1 Madrid, Spain 2007 30 3.95 cm (3 tx) 100% measurable and visual improvement

Leal H.2,3 Monterrey, Mexico 2008 36 5.0 cm (3 tx) 100% measureable reduction 94% patient satisfaction

Ad El D.2,3 Beilinson Med, Israel 2008 26 3.96 cm (3 tx) 90% > 2.0 cm circumference reductionMulholland S.2 Toronto, Canada 2008 21 3.48 cm (3 tx) 86% patient satisfaction

Inglefield C.2 London, UK 2007 148 6.3 cm (3 tx) 93% patient satisfaction

de Almeida G.2 Sao Paulo, Brazil 2007 20 5.4 cm (3 tx) 100% measurable reduction 86% patient satisfaction

Benchetrit A.2 Montreal, Canada 2010 109 4.5 cm (3 tx) 96% measurable reduction 86% patient satisfaction

Niwa A. 1 São Paulo, Brazil. 2010 120 4.95 cm (3 tx) 92% measurable reduction94% reported comfortable treatment

Ascher B.1 Paris, France 2010 25 3.58 cm (3 tx) 90% reported no pain

S.-L. Chang1,2 Taiwan 2013 32 3.91 cm (3 tx) 21.4% and 25% reduction in fat thickness measured by MRI

Weiss, Coleman, Kenkel, Ad-El3 US, Israel 2013 32 3.34cm (3 tx) 100% reported very low pain levels

Superior Technology for Non Invasive, Immediate Fat Destruction

Average circumference reduction ranges from 3.3 to 6.3 cmAverage response rate ranged from 83% to 100%

19

Investor Meeting – UltraShape Update (Sep. 2014)Panel of 3 leading Physicians

− Dr. Bruce Katz – New York“In terms of the outcome I just treated a patient two weeks ago after one treatment alone she saw a two inch reduction in herabdomen, so you [have] see[n] results a lot faster with this technology than perhaps with the other two CoolSculpting and Liposonix which can take two months to see the eventual outcome…. and you really can’t tell anything was done, you look at person’s body after and you can’t see, bruising, swelling. I mean it’s really a very rapid recovery….Its a great choice for our practice.”

− Dr. David Amron – Beverly Hills “Why UltraShape? I think it really is the most sophisticated specific technology for fat reduction non-invasive that is out there….This is so sophisticated and so specific that it really is a next generation…As you were made aware there is no shelving the demarcation like you can see with CoolSculpting, there is no pain and we talked about that absolute advantage, it’s very safe -an important thing. And there is no visible sign of treatment.”

− Arie Benchetrit - Canada“We treated over 800 patients so that’s over 2000 treatment cycles over the last seven years. The treatments are very well tolerated. We’ve never had a patient dropout of a treatment cycle and that’s very important if you speak to doctor like Dr. Amron or others who have had Liposonix or some of the other devices patients’ dropout. They can’t tolerate the pain or side effects and often don’t finish their treatment cycle …That has never happened in seven years with the UltraShape.”

“We decided to undergo a procedure ourselves. Following our experience we can objectively concur with the notion that discomfort would not be a deterrent for an UltraShape procedure. It simply felt as if we were receiving a fetal ultrasound.”

- Zack Ajzenman, Griffin Securities

• Over 60 investors and sell side analysts participated• 3 active treatment rooms with over 15 investors and analysts

undergoing on-site treatment demonstrations• Participants provided positive feedback on UltraShape

experience and opportunity

20

UltraShape® Three Treatment Results

Reduction -4.7 cm upper, -5.4 cm lower abdomen

Weight change -2.2Kg

Pre-Treatment 4 Weeks Post Treatment

Upper/ Lower Abdomen

Courtesy of Dr. Arie Benchetrit, Montreal, Quebec

Reduction -5 cmWeight change -2.2Kg

Pre-Treatment 4 Weeks Post Treatment

2121

Courtesy of Dr. Wendy Tink, Vive Clinic – Calgary, Alberta

Reduction -14 cmsWeight change -3.2Kg

Pre-Treatment 2 Months Post Treatment

Reduction -10 cmsWeight change -3.2Kg

Pre-Treatment 2 weeks Post Treatment

22

UltraShape® Three Treatment ResultsFlanks

22

New FDA cleared: U-Sculpt Transducer

• Compact ergonomic design

• Ideally suited to treat any

size and shape of fat pocket

on the body

• Interchangeable, during

procedure, with large

applicator

23

Control25% increased power with

regular protocol

Immediate Fat Destruction

VDF Multi-Focus

In-vivo Porcine Model: Acute Macro Effects

More Fat Volume Destruction Per Pulse

New FDA cleared: 25% power increase and VDF protocol

24

High Margin Recurring Revenue Business Model

UltraShape GM Over 70%

Revenues from Capital Equipment

System List Price $99,000

• Consumables will be sold in the form of Focal Treatment Zones (FTZ)

• Average abdominal treatment requires 10 FTZ’s

• Practice purchases FTZ’s based on patient volumes

• Cost of FTZs represents 25%-33% of treatment revenue charged by physician

Revenues from Consumables

FTZ List Price: $25

Shift to a Consumables Business Model

25

UltraShape® NA Launch Plan• FDA 510(k) clearance received April 2014

• Controlled market launch with KOLs in Q2-Q3 2014; Full launch in Q4 2014

• Creating Bifurcated Body Shaping Business Group (team of 50-60 reps by end of 2015)

Territory Managers For Capital Sales

• Initial Focus on Installations

• Expansion of installed base

• Ensure healthy pipeline

Practice Development Partners (PDP’s)

• Focus on educating practices

• Provide marketing support

• Drive utilization of Focal

Treatment Zones (FTZs)

• Targeting 7,000 VelaShape WW installed base and users of competitive systems• Potential for bundling with VelaShape

26

UltraShape® Practice Value Proposition• New technology provides clinic

differentiation – attracts new patients• Cross selling opportunities with other

offerings – attracts new patients• Practice Development Partner (PDP)

marketing and clinical support for practice

• Computer guided treatment - Easy to learn & use- High staff acceptance

• 10 new patients per month (20 treatments per month) =$220,000 - $250,000 in annual revenue

27

UltraShape® 2015 Target Customers

• Differentiate practice

• Painless; low side effect profile

• New marketing program

• Offer latest Immediate Fat Destruction technology

• Alternative for “pain-sensitive” patients

• Correcting unevenness from Lipo/other devices

• Can treat any size and shape of fat pocket

• Differentiate practice

• Complementary to VelaShape

• New marketing program

28

UltraShape®: A Game Changer for Syneron Candela

• Planned 2015 revenue: $20M

• $65M-$100M in UltraShape revenues within 3 years

• Above 70% gross margin on UltraShape business

• 50% capital equipment and 50% recurrent revenues within 3 years

• Achieving a long term win-win partnership with our customers

29


Targeting connective tissue

Targeting and destroying fat


30

VelaShape III

• FDA cleared for the treatment of cellulite and circumferential reduction

• Increased RF Power by a factor of 2.5 to 150W

• Single treatment with an average abdominal circumferential reduction of 2.5cm and 100% patient responders

Cellulite, Skin Laxity, Circumference

31

After

Treatment of Skin Laxity with VelaShape Technology

Photos: Regine Bousquet, MD

Before

32

0

0.8

1.8

2.6

0

0.5

1

1.5

2

2.5

3

3.5

Baseline 4 weeks 7 weeks 10 weeks

[cm

]

Mean abdomen circumference reduction

VelaShape III - Single Treatment Protocol42 patient trial

0%

36%

71%

100%

0%

36%

67%

100%

0%

27%

55%

80%

0%

20%

40%

60%

80%

100%

Baseline 4 weeks 7 weeks 10 weeks

[%]

1 cm 1.5 cm 2 cm

Abdominal Circumference Reduction % of Patients with CR of 1cm, 1.5cm and 2cm

33

Body Shaping as a Growth Driver - Leveraging Our Strengths

• Installed base of close to 15,000 systems in NA out of which 2,000 are body shaping systems

• Superior technology platforms

• Ability to offer comprehensive body shaping solutions for all major indications (Non-Invasive Fat Destruction, Skin Laxity, Cellulite, Circumference)

• Cross selling opportunities with other devices

34

Expansion and Optimization of NA Sales Org

• 6 additional reps focused on CoolTouch products

• Expanded NA sales force from 35 to 65 over the last 12 months: better product and territory coverage

• Focus on selling high margin products

• Building an additional dedicated Body Shaping sales team of 50-60 by the end of 2015: 25-30 capital equipment sales reps and 25-30 consumable PDP’s

• 15 PDP’s on board by 4Q14

• 15 sales reps to the Body Division in January 2015, comprised of new hires and some from existing NA sales team

Optimization of sales coverage will add focus on both core and non-core markets

35

Dual wavelength picosecond laser to treat tattoos of all types and colors, and pigmented lesions on any skin type

PicoWay

• FDA Clearance in late October for removal of tattoos of all colors

• Immediate U.S. launch in November 2014• Investing in sales & marketing to support launch• US potential market for tattoo removal procedures: $11.4B - $22.7B1

• Received CE Mark in July for removal of tattoos of all colors and pigmented lesions

• Featured at medical meetings in late September in Europe • Full launch in late October 2014 at EADV meeting in Europe

• $260K list price and 15-20% higher gross margin on top of current gross margin levels

• Growth driver starting November 2014 with at least $1M contribution to revenues in Q4

Candela global installed base of ~1,400 dedicated tattoo removal & pigmented lesion lasers and >11,000 platforms that include pigmented lesion indications

¹ 2013 Census; 21% of adults in America have at least one tattoo; The Harris Poll, 2012 Harris Interactive; 14% of those with a tattoo regret their tattoo; The Harris Poll, 2012 Harris Interactive; Estimated average tattoo removal procedure fee is $400; 4-8 treatments required

36

PicoWay

• Treat widest range of tattoos & pigmented lesions 2 wavelengths + ultra-short 450 picosecond pulses enable treatment of more patients than single wavelength picosecond units

• Compared to other picosecond or Q-switched lasers PicoWay’s ultra-short pulses optimizes the photoacousticpressure on the target better than any device, shattering the ink with the least amount of heat transferred into the skin

• Pulse-on-demandLower cost of ownership than other picosecond laser systems which run continuously throughout the day

• Compact system Fast and easy to use

• Upgradability Additional applications and upgrades

37

PicoWay Treatment Results

Tattoo Removal (U.S. & International) and Pigmented Lesion (International Only)

38

Unilever Syneron Joint Venture

Structure Strategic Rationale

• Build on investments in Syneron Beauty to create focused home beauty device business with enhanced growth and profitability profile

• Unilever participation provides additional validation of Syneron Beauty and robust home-use beauty device market

• Eliminate impact of Syneron Beauty on consolidated financials and cash flow while retaining upside potential

• Allows Syneron Medical to focus on the significant opportunities in PAD business

• Improves core business margins and profitability

• Agreement closed December 8, 2013• Global joint venture with Unilever to

include:- Syneron Beauty- Iluminage (Unilever subsidiary)- $25 million Unilever investment

• Ownership: Unilever 51% / Syneron 49% of ordinary shares

• Management / Board of Directors- Shimon Eckhouse – Chairman- Syneron 2 seats / Unilever 2 seats

/ 1 independent director• Valuation based on the Fair Value of the

JV, changes to be shown in GAAP EPS

39

Addresses growing skin lightening market, especially in Asia

• Signed a distribution agreement in Korea, start shipping in Q4 2014

• Signed a distribution agreement in China –commercial in Q1 2015

• Enhanced current distributor relationship in Japan –commercial in 2015

Additional Potential Business Opportunities

elure™ opportunityStrengthens recurring revenue strategy; Entry into significant new markets

• Integration on track

• FDA clearance received October 31, 2014 for our OEM -30-Watt Holmium Laser for breaking of kidney stones andsoft tissue urological work

• Addressing the lucrative vein treatment market with highrecurring revenue component

• 6 dedicated sales reps in U.S. are on board

40

CoolTouch™ opportunity

Financial Highlights (Non-GAAP)$ Thousands (except per margins)

Total 2013 (*) Q1 14 Q2 14 Q3 14

Revenues 232,129 56,813 64,618 60,257YOY change, % (3.8%) 2.0% 6.1% 8.3%Cost Of Revenue 105,187 26,398 29,609 26,775Gross Profit 126,943 30,415 35,009 33,482

GM % 54.7% 53.5% 54.2% 55.6%

Total OPEX 115,170 28,524 31,851 30,858

EBIT 11,771 1,891 3,158 2,624 Operating Margin 5.1% 3.3% 4.9% 4.4%

Financial Income (expenses), net 222 164 228 (764)

Taxes on Income (tax benefit) (1,431) 727 900 920

Net Loss attributable to non -controlling interest 100 - - -

Net Income 13,524 1,328 2,486 940

EPS ($) 0.37 0.04 0.07 0.03

(*) Without SB

41

Third Quarter Highlights*

*The third quarter 2014 year-over-year comparisons to the third quarter 2013 are on a pro-forma basis, excluding Syneron Beauty from the third quarter 2013 results following its de-consolidation as of December 8, 2013

Generated $4.9 million in cash flow from operations

36.9 38.5

18.7 21.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Q3-2013 Q3-2014

International North America

Y/Y Revenues ($M)

55.760.3

8.3%

16.3%

4.2%

16.4

18.1

15.0

16.0

17.0

18.0

19.0

20.0

Q3-2013 Q3-2014

Recurring Revenue ($M)

11%

36.1%

63.9%

Revenue by Geography

North America International

30.0%

70.0%

Revenue Mix

Recurring Product

42

Select Financial (Non-GAAP) Items*

*The third quarter 2014 year-over-year comparisons to the third quarter 2013 are on a pro-forma basis, excluding Syneron Beauty from the third quarter 2013 results following its de-consolidation as of December 8, 2013

• Gross margin of 55.6% vs. 54.5% in 3Q13• Increase driven by favorable geographic

and product mix

• Operating margin of 4.4% vs. 5.1% in 3Q13• Decrease driven by higher S&M expenses

related to expansion of NA sales force and dedicated body shaping team

• Decrease also due to CoolTouch integration and expenses

• EPS of $0.03 vs. $0.07 in 3Q13• EPS decreased by $0.02 due to changes in

foreign currency exchange rates compared to the U.S. dollar.

• * 3Q14 EPS would have been $0.05excluding changes in foreign exchange

54.5%54.2%

55.6%

53.0%

54.0%

55.0%

56.0%

Q3-2013 Q2-2014 Q3-2014

Gross Margin %

0.07 0.07

0.03

0.000.020.040.060.08

Q3-2013 Q2-2014 Q3-2014

EPS ($)

5.1%4.9%

4.4%

$15,000

$17,000

$19,000

$21,000

4.0%

4.5%

5.0%

5.5%

Q3-2013 Q2-2014 Q3-2014

Operating Margin %

Operating Margin % Sales & Marketing Expense

0.05*

43

Select Balance Sheet Items

• $100.4 million in cash and cash equivalents at September 30, 2014

• Generated $4.9 million in cash from operations

• DSO of 78 vs. 84 days in 3Q13 and 81 days in 2Q14

92.6

96.4

100.4

90

92

94

96

98

100

102

104

Q1-2014 Q2-2014 Q3-2014

Cash Position ($M)

-6.5

-4.0-4.9

3.74.9

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014

Cash Flow from Operations ($M)

-2.8-1.7

-4.9

3.74.9

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014

Cash Flow from Operations ($M) w/o SB

44

Positioned for Growth• A global leader in the medical aesthetics device

sector with 28%¹ market share

• Largest global footprint and installed base

• Financial strength

1 – Based on US publicly traded companies listed here (CYNO, CUTR, ZLTQ, LMNS); Professional Aesthetic Device Sector

Profitable growth drivers:

- Focus on non-invasive Fat Destruction and Body Shaping markets

- UltraShape NA launch

- New business model for recurring revenue

- Expansion and optimization of NA sales force, focused on selling high margin products

- PicoWay launch

- Joint Venture with Unilever

- CoolTouch investment for growth

- Elure skin lightening opportunity

• 2015 objectives:

− Double-digit revenue growth

− Continued investment in sales & marketing to drive

growth for key products

− Operating margin increase

45

Non-GAAP pro-forma results (excluding SB) included in this presentation

APPENDIX

46

Pro-Forma Results

September 30, 2014 September 30, 2013 September 30, 2014 September 30, 2013

Consolidated Non GAAP

Pro Forma Basis, Excluding Syneron Beauty

Consolidated Non GAAP

Pro Forma Basis, Excluding Syneron

Beauty

Revenues 60,257$ 55,657$ 181,688$ 172,250$ Cost of revenues 26,775 25,331 82,782 78,268

Gross profit 33,482 30,326 98,906 93,982 - -

Operating Income 2,624 2,859 7,673 8,629 - -

940$ 2,460$ 4,754$ 7,719$ Income attributable to Syneron shareholders

For the three-months ended For the nine-months ended

Syneron Medical Ltd.Unaudited Non-GAAP Condensed Consolidated Statements of Income

(in thousands, except per share data)

Net Income attributable to Syneron shareholders 0.03 0.07 0.10 0.22

Net Income attributable to Syneron shareholders 0.03 0.07 0.10 0.21

Weighted average shares outstanding:Basic 36,768 36,064 36,637 35,826

Diluted 37,228 36,196 37,277 36,058

Income per share:

Basic

Diluted

47

Thank you!

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