Titan Medical Inc. TSX: TMD | OTCQX: TITXF February 2015 1 - PowerPoint PPT Presentation

Titan Medical Inc. TSX: TMD | OTCQX: TITXF February 2015 1

Forward Looking Statements This presentation contains "forward-looking statements" which reflect the current expectations of management of the Company's future growth, results of operations, technological development and implementation, performance and business prospects, opportunities, and illustrations and prototypes of the SPORT™ Surgical Systems. Wherever possible, words such as "may", "would", "could", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance, achievements or technological development and implementation to be materially different from any future results, performance, achievements or technological development and implementation that may be expressed or implied by such forward-looking statements, including, without limitation, those listed in the "Risk Factors" section of the Company's Annual Information Form dated April 4,2014 and other information contained in the Company’s public filings (which may be viewed at www.sedar.com). Information contained in this presentation is qualified in its entirety by such public filings. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this presentation. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the presentation are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward- looking statements. This presentation does not constitute an offer to sell any class of securities of the Company in any jurisdiction. 2

Investment Highlights • Targeting large and rapidly growing robotic surgery market – General Surgery (Cholecystectomy, Appendectomy) – Gynecology (Benign Hysterectomy) – Urology • Innovative Single-Port device with growing IP – High-dexterity robotic platform – Small footprint – Lower cost • “Razor / Razorblade” model drives attractive recurring revenue stream • Highly experienced management team and Surgeon Advisory Board • Development partnership with leading product realization firm Ximedica • Recently raised CDN ~$38 million 3

Market Drivers: Hospital Trends Mobility Flexibility Affordability Versatility Movement to minimally Reduction in patient invasive surgery hospital stays Greater ROI: CLINICALLY FINANCIALLY OPERATIONALLY Management of budgets Reduction of complication emphasizing cost-conscious, and infection rates clinically-efficient solutions 4

Return on Investment FINANCIAL OPERATIONAL CLINICAL Less expensive surgical Simpler, smaller surgical Less complex, higher device device volume procedures More patients benefit from Mobility Profitability for hospitals robotics Affordability for secondary More ambulatory surgeries Flexibility and tertiary hospitals are possible Acceptability for Affordable Operational Versatility Benefits from MIS Care 5

SPORT TM Market Opportunity GENERAL SURGERY GYNECOLOGY UROLOGY Cholecystectomy Benign Hysterectomy Partial Nephrectomy Appendectomy Pyelolithotomy Colectomy Adrenalectomy Bariatrics Bilateral Vasovasostomy TOTAL MARKET OPPORTUNITY OF 4 MILLION PROCEDURES 6

SPORT TM Surgical System Easy setup and Small footprint maneuverability Lower cost < $1 M Expands procedural Improved dexterity penetration Comprehensive Simulation training training Competitive advantages driving utilization and enhancing ROI for hospitals For illustrative purposes only. Does not necessarily represent the final working product. 7

Market-Proven Business Model Recurring Revenue One Time System Disposable Sales Service Instruments Agreements In excess of 6,000* placement (high recurring revenue) opportunities in the United States * Source: American Hospital Association (January 2, 2014) 8

Ximedica Overview • A full service product realization firm with over 25 years of experience developing medical device products • 3 offices:  Providence, RI  St. Paul / Minneapolis, MN  Hong Kong • Ximedica’s Quality Management system is certified as compliant with ISO 13485:2012  ISO 13485 is aligned with the U.S. Food and Drug Administration’s requirements for Quality Management Systems • Has developed medical device products for some of the largest medical device manufacturers in the industry • Titan has contracted Ximedica to bring the SPORT™ Surgical System to market, including technical, regulatory and manufacturing efforts 9

Strategy for SPORT TM Development ESTABLISHED TIERED STRATEGY IN TIER 1 TIER 2 TIER 3 2014 COMPLETE IN PROCESS IN PROCESS Objective was to de-risk functionality most critical to surgeons Critical Critical functionality • Instruments Functionality Instruments Aesthetics integration Instruments Aesthetics Integration • Controllability • Visualization Surgeon & User interfaces Lens Cleaning Tier 1 functionality developed and proven as separate initiatives Mobility Controllability Lens cleaning & Adjustment Regulatory Strategy, Product Risk Surgeon & User Interfaces Management and IP Strategies are Custom Custom Visualization Instruments Instruments being managed in parallel Custom Visualization Sterility Instruments & Reprocessing 10

ACHIEVEMENTS CHIEVEMENTS 11 11

Instruments Successfully implemented 47% additional end effectors: • Needle driver Size reduction • Hook cautery 700 • Curved dissector • Atraumatic Grasper Hours of lab testing 30 Improved performance related to: • Precision of movement Physical • prototypes Workspace evaluated • Manufacturability 5 Initialized development of sterile Tissue tests drape interface 50 Hours of tissue interaction New picture needed New picture needed New picture needed Curved Dissector Hook Cautery Needle Grasper Atraumatic Grasper 12

Controllability Leveraged robust human 20+ factors/usability process per FDA guidelines Advanced algorithms developed Developed controllability benchmark system 50% Substantially advanced Latency reduction controllability: • Reduced learning curve • Reduced cognitive load 12+ • Increased ability to perform complex tasks Robotic/non- robotic surgeons in controllability studies Usability Studies Controllability Data Analysis Human Factors Analysis 13

Visualization Successfully integrated functionality 3rd of custom visualization system: • Image capture Generation • camera lens Image process design • Image display 2nd Advanced capabilities of image Generation portal processing enable accurate color design rendition Full Advanced design of insertable camera 1080p Imaging module 20+ Imaging portal resolution increased substantially and size reduced 50% Expert surgeons commented image is equivalent or Developed 2 nd generation insertion better than state tube and articulation of the art Viewing Portal 14

Integration Successfully demonstrated on target 4 performance of critical subsystems Successful deployments into Successfully integrated critical living abdominal cavity subsystems into highly functional robotic system 1st System to place Capabilities include: multiple multi- articulating • Insertion into living instruments and abdominal cavity an integrated articulating 3D • Deployment of instruments camera with and camera lighting through a single 25mm • Complex surgical tasks incision • Acquisition and display of 1080p 3D image • On-target controllability 15

Key Milestones U.S. Commercial Pivotal Trial Launch Completed, 510(k) (Pending 510(k) Submitted to FDA Market Pivotal Human Clearance) Clinical Trial O.U.S. Commercial Early Human Commenced Launch (Pending Feasibility Report CE Mark Approval) Completed Audit for CE Mark Units Built and Commenced Ready for Engineering Mid-2017 Verification 4Q 2016 Design and Test of 3Q 2016 Feasibility Prototype 2Q 2016 Completed 4Q 2015 1Q 2015 16

Management Team High-quality management team brings a combined 120 years of clinical, managerial, operational, and financial experience at leading health care companies and medical institutions 17