Titan Medical Inc. Single Inc isio n Sur ge r y TSX-V: TMD | - PowerPoint PPT Presentation

Titan Medical Inc. Single Inc isio n Sur ge r y TSX-V: TMD | OTCQX: TITXF May 21, 2013 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 Amadeus 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 10, 2013 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

Titan Medical Overview Titan Medical is developing a Single Incision Surgery platform to provide • clear competitive advantages Over $30 MM invested in research and development • – Single Incision Surgery insertion through ~25mm access – High dexterity computer assisted instruments – Force-feedback control and surgical simulation Differentiated technology with growing IP portfolio • Attractive financial model – “Razor / Razorblade” • Single Incision Surgery scheduled for launch outside the US in 2015 • 3

Single Incision Surgery benefits For The Surgeon For The Patient • • Magnified 3D vision for anatomic Shorter hospitalization viewing • Reduced pain • Precision, control and range of • Faster recovery times motion of micro-instruments • One incision, reducing risk of • Improved access to organs, tissues infection, blood loss and scarring and nerves with high dexterity instruments For The Hospital • Answers the challenge of: • Increased efficiency • Operating room utilization • Cost of entry into surgical robotics • Return on investment of capital equipment 4

Single Incision Surgery Multi-port Single Incision Open Surgery Surgery Surgery Titan Advantages: • – Single Incision 25mm access – Improved instrument dexterity and reach – 3D HD visualization – Small footprint providing easy setup and maneuverability – Capital cost ~$600K I ma g e So urc e s: Co lumb ia Unive rsity; Sina i Surg e ry Asso c ia te s, Mo unt Sina i Me dic a l Ce nte r, Ne w Yo rk 5

Market Opportunity Over 3.2 million newly diagnosed cases • each year Urology Colon & Rectal Cardiac 322,000 142,570 370,000 10% 4% 12% ~450,000 robotic surgeries in 2012 • GYN Hysterectomy and Prostatectomy • 824,000 represent 75% of those surgeries 26% General Surgery 1,000,000 Titan’s Single Incision Surgery system to 31% • initially target General Surgery Thoracic 258,520 ENT 8% 285,020 Estimated annual market to exceed $4 • 9% Billion* So urc e : Ame ric a n Ca nc e r So c ie ty, pub lic c o mpa ny filing s * Ro b o tic surg e ry wa s first c o mme rc ia lly intro duc e d in the ye a r 2000, a nd in te n ye a rs ha s g ro wn to a $1 b illio n industry. E stima te s sug g e st tha t the Ro b o tic Surg e ry E q uipme nt Ma nufa c turing industry re ve nue is pro je c te d to inc re a se a t a n a ve ra g e a nnua l ra te o f 14.9% to $4.2 b illio n in the thre e ye a rs to 2016. So urc e : Pub lic c o mpa ny filing s, I BI S Wo rld 6

Addressable Opportunity tunity Cur r e ntly Addr e sse d Mar ke t T itan Me dic al Oppor Co lo n Co lo n & & Re c ta l T ho ra c ic Re c ta l T ho ra c ic Ge ne r al Genera l Sur ge r y Surg ery C a rd ia c Cho le c yste c to my Ca rdia c 750,000 Appe nde c to my 250,000 Ur Ur ology ology Uro lo g y Pro sta te c to my Pro sta te c to my 200,000 200,000 GYN GYN Hyste re c to my Hyste re c to my 600,000 600,000 E NT E NT GYN T hyro id Ca nc e r 44,670 Ba se o f T o ng ue Ca nc e r 10,990 L a ryng e a l Ca nc e r 12,720 E so pha g e a l Ca nc e r 16,640 T o nsille c to my 200,000 So urc e : Ame ric a n Ca nc e r So c ie ty, pub lic c o mpa ny filing s 7

Titan’s Single Incision Surgery Ope ra ting Ro o m I ma g e s fo r illustra tio n purpo se s o nly a nd a re sub je c t to c ha ng e • A computer assisted platform for Single Incision Surgery • Addresses unmet surgical needs technically and economically 8

Titan’s Single Incision Surgery Features include: • – Deployment of system into body cavity through a ~25 mm skin incision – High dexterity 7DOF computer assisted instruments – Stereoscopic 3D HD controllable camera – Full array of surgical tools (capable of delivering electro-cautery for hemostasis) – Small refined workstation 9

Development Plan Research & Early Development Licensing Activity • Voice of the customer and market research • IREP from Columbia University for R&D single-site access surgery • Articulating Instruments • Console with Force-Feedback • Assess functionality of existing development/prototypes and specifications Phase 1 • Concept development and prototypes for each critical area sub-component Current Commercialization • Generate fully specified design and system-level prototype Phase 2 • Perform animal and cadaver testing • Conduct final prototype builds and design verification testing Phase 3 • Complete and submit necessary regulatory packages • Transfer completed system design to manufacturing Phase 4 • Ready for commercialization 10

Key Milestones F DA 510(K) Appr oval Outside U.S. Ma r ke t L a unc h Outside U.S. Appr ovals (CE Ma r k) U.S. Initia tion of Huma n Clinic a l T r ia ls 2H 2015 Initia tion of Sing le 1H 2015 Inc ision syste m for Ca da ve r a nd Anima l Studie s 2H 2014 2H 2014 2H 2013 Catalysts Increasing Shareholder Value 11

Intellectual Property Patents & Patent Applications 7 U.S. Patents • – 8,332,072 8,347,754 8,306,656 8,224,485 6,358,196 5,593,379 5,529,568 10 Patent Applications (U.S. and PCT) • Licensed Technology Licensed Technology • – Exclusive rights to 4 patent applications presently pending before patent offices in the U.S., Canada and/or Europe – Covering technology related to: • Surgical Stapler from the Mayo Foundation • Insertable Robotic Effector Platform ("IREP") for single-site robotic surgery from Columbia University 12

Clinical Site Partners 13

Business Model ime ing Re ve nue One T Re c ur r Syste m Se r vic e Disposable Sale s Agr e e me nts Instr ume nts 6,000 pla c e me nt ~$50,000 pe r ye a r o ppo rtunitie s wo rldwide High recurring revenue to be generated by disposable components • Reasonable profit margins • Proven business model in the market • 14