1

Forward-Looking Statements
Certain statements in this presentation and the accompanying oral commentary are forward-looking statements. These
statements relate to future events or the Companys future financial performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the
Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In
some cases, forward-looking statements can be identified by terminology such as may, will, could, would,
should, expect, plan, anticipate, intend, believe, estimate, predict, potential or other comparable
terminology. All statements other than statements of historical fact could be deemed forward-looking, including any
expectations regarding investment returns; any projections of financial information; any statements about historical
results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management
for future operations; any statements of expectation or belief regarding future events, potential markets or market size,
or technology developments; and any statements of assumptions underlying any of the items mentioned. The Company
has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While
the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the
Companys control. These and other important factors may cause actual results, performance or achievements to differ
materially from those expressed or implied by these forward-looking statements. These statements may involve risks
and uncertainties that could cause actual results to differ materially from the expected results. Such risks include but
are not limited to the risk factors set forth in the Companys most recent Form 10-K, Form 10-Q and other filings with the
Securities and Exchange Commission (SEC). Investors are urged to review the Companys SEC filings. The forwardlooking statements in this presentation are made only as of the date hereof. Except as required by law, the Company
assumes no obligation and does not intend to update these forward-looking statements or to conform these statements
to actual results or to changes in the Company's expectations.

NASDAQ: IVTY
Philip Sawyer, Chief Executive Officer
Jim Mackaness, Chief Financial Officer

of all surgical procedures are open

minimally invasive and minimal access*
5

* Based on company estimate for the U.S.

The Common Problem: Poor Visibility

The Invuity Solution: Intelligent Photonics

Company Snapshot*
Proprietary Intelligent Photonics Technology

Platform Technology--9 Product Families

~212,000 Procedures
~80% of Revenue from SingleUse Devices
~$2.0B US Market
>56% YoY Revenue Growth 2016 vs. 2015
July 2016 Raised $30m in secondary
7

*As of Sept 30, 2016

overhead
lights

headlights

fiber
optics

POOR
VISUALIZATION

10

10

01.
SOLID CORE
OPTICAL POLYMER
02.
TOTAL INTERNAL
REFLECTION AND LIGHT
MIXING

03.
REFRACTIVE
MICROSTRUCTURES

Intelligent

Photonics
Technology

04.
THERMALLY COOL
ILLUMINATION

11

11

LIGHT PROJECTION

Traditional
Fiber Optic
12

* Per co. bench testing

Intelligent
Photonics
Technology

TEMPERATURE (C)

50.3C
maximum

At 44C and above, a

burn can occur

33.2C
maximum

Traditional
Fiber Optic
13

* Per co. bench testing

Intelligent
Photonics
Technology

XT
System

Eika

14

Eivector

Saber
Yankauer

Breiten

Drop-in

Handheld

Saber
Frazier

Eipex

Retractor

Eikon

Eiberg

14
14

precision

15

efficiency

safety

16

Initial US Beachhead Specialties TAM $1.0B*

$2B US Total Available Market*

17

*Company estimate

19

Hysterectomy and Pelvic Organ Prolapse Opportunity

Key Procedure Targets

Vaginal Hysterectomy
Lap Assisted Vaginal Hysterectomy
Abdominal Hysterectomy
Pelvic Organ Prolapse

>300,000 annual procedures (US)

20

20
20

21

21
21

Pacemaker and ICD Opportunity

Key Procedure Targets

Primary implantation
Replacement
Extractions
>500,000 annual procedures

22

22
22

Pacemaker and ICD Opportunity

Risk Factors

Hematoma complications
2-5% reported rate of complications due to hematomas
Increased risk of mortality
Increase patients length of stay in hospital, resulting in higher hospital costs

Infection rates
2-3% reported rate of infection

Higher risk of readmission

Costly reoperation

23
23

Invuity Solution

Invuitys Eikon LT non-conductive illuminated retractor system provides superior intra-pocket

illumination and visualization. This technology allows me to establish hemostasis with confidence
which reduces hematomas and associated infections. In addition, the improved visualization
enables me to create a larger and more appropriately sized pocket which increases patient comfort
as well. In the final analysis, I am able to achieve better results, and achieve them easier and
faster
Narendra Kanuru, MD
Director, Cardiac Electrophysiology
WellStar Health System
24Marietta, GA
24

25

25
25

PhotonBlade
Intelligent Photonics
with Integrated Advanced
Electrosurgery

26

26
26

PhotonBlade

Industry-Leading Illumination and Visualization with Integrated Advanced

Electrosurgery

27
27

Strategically important
Two technology platforms surrounding surgeons in minimal access surgery
While maintaining commercial focus
Use existing sales force
Single use device with similar price point to existing products

Initial focus:
Breast and Plastics
Cardiac Electrophysiology

Secondary focus:
Ortho
Spine

Represents ~1,000,000 annual procedures (US)

28
28

Commercial Strategy and

Financial Overview

29

Quarterly Revenue Growth

30

Commercialization
Strategy
Grow customer base 700
accounts Q3 2016 vs. 456 Q3
2015
Expand deeper to new surgical
procedures and specialties
top/down strategy
Add new products
Drive procedure volumes ~212,000
procedures performed to date vs.
~125,000 as of Q3 2015

31

Key Revenue Drivers

32

Financial Summary
Results of
Operations

(in thousands, except

percentages)

Twelve Months Ended

Dec. 31
2013

Nine Months Ended

Sept. 30

2014

2015

2015

2016

REVENUE

$7,186

$13,103

$21,031

$14,784

$23,106

COST OF GOODS
SOLD

$2,294

$4,630

$7,733

$5,605

$6,416

Gross profit

$4,892

$8,473

$13,298

$9,179

$16,690

68.1%

64.7%

63.2%

62.1%

72.2%

$16,847

$28,225

$48,505

$34,819

$46,297

($11,955)

($19,752)

($35,207)

($25,640)

($29,607)

Gross margin
OPERATING
EXPENSES
LOSS FROM
OPERATIONS

33

Investment Summary

Favorable Economics
Large Under-Penetrated Market
Significant Clinical & Product
Advantages with Strong IP
Experienced Management Team

34

35