EndoChoice Corporate Presentation

EndoChoice Corporate Presentation
January 2016
Safe Harbor
This presentation contains forwardlooking statements. You should not rely upon
forwardlooking statements as predictions of future events. All statements other than
statements of historical facts contained in this presentation, including information
concerning our possible or assumed future results of operations and expenses, business
strategies and plans, competitive position, business environment and potential growth
opportunities, are forward-looking statements. Forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements.
These risks and uncertainties are described in our filings with the SEC, including the
Registration Statement on Form S-1, as amended, for our initial public offering and our
Form 10-Q for the period ended September 30, 2015. Given these uncertainties, you
should not place undue reliance on any forward-looking statements in this presentation.
Except as required by law, we disclaim any obligation to update any forwardlooking
statements for any reason after the date of this presentation.
This presentation shall not constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
EndoChoice at a Glance
Platform GI Company
Differentiated Tech
$6B Addressable Market
Growth Drivers
Single Use Products
Pathology
Imaging
2015 Revenue of
$72.3M,
18% growth YoY
Shipped 82 Fuse
$6B Global
end-user systems,
GI market,
year over year
growing annually
growth of 116%
at 7%
New Products,
Expanding Sales
Team, 2,500+ US
customers
GI Market Opportunity
EndoChoice Platform for GI Endoscopy

~$6 Billion Global GI Market
7% GI Market Growth Rate
Single-Use Products
Source:
Markets & Markets, Endoscopy Equipment, Global Forecasts to 2018;
The U.S. Anatomic Pathology Market, Forecast & Trends 2014-15;
Annual Reports and EndoChoice Internal Estimates
Note: Devices do not include ERCP and EUS opportunity
2008
Pathology
2010
Imaging
2013
EndoChoice is Targeting
95% of GI Procedures
Source: iData & EndoChoice Internal Data

6
A World of Opportunity
Tissue Acquisition
Visualization
Inventory Mgt
Luminal Access
Airway
Diagnostic Tests
Dilation
EndoKits
Suction
Luminal Patency
Patient Monitoring
Patient Service
Hemostasis
Preparation
Infection Risk
Quality Measures
Data Management
Transport
Retrieval
Mobility
Cleaning
Personal Protection
Disinfection
7
Fragmented GI Community
GI Procedure
Cycle
EndoChoice Platform
Proven Track Record in GI Innovation
ASP Range of $2 to $225,000

10
Three Growth Engines

Serving the GI Caregiver with Differentiated Products and Services
Single-Use Products
Pathology
Imaging
2015 Revenue $36.1M
2015 Revenue $13.9M
2015 Revenue $22.4M
Total 2015 Revenue: $72.3M 2 Year CAGR: 18%

Leveraging a Unified Sales Team
The EndoChoice Platform
12
Single-Use Products
~$1.7B Market Size Globally
XX%
2015 Revenue
$36.1 Million
2-Year CAGR 8%
Single-Use Products
2016 SUP Growth Drivers

More than 2,500 customers in the US
New Products to increase wallet share
New 20 Dedicated Account Managers
Stable SUP Revenue Underpins Model

$50,000
$45,000
$40,000
$35,000
$30,000
30,700
2,062
33,845
1,984
36,076
2,198
$25,000
$20,000
$15,000
28,638
31,861
33,878
2014
2015
$10,000
$5,000
$0
2013
(000s)
Domestic Single-Use Products
International Single-Use Products
Presence in >2,500 GI departments (1/3 of U.S. market)

65% of our SUP customers buy multiple products
Fuse customers buy 2.5x vs non-Fuse customers
14
GI Pathology
~$1B Market Size in US
XX%
2015 Revenue
$13.8 Million
7% CAGR
GI Pathology

Automated ADR Reporting
Stickiness via EMR integration
New 20 Dedicated Account Managers
Pathology Growth
(2 Year CAGR of 9% in Specimens Processed)
$15,000
140,000
Specimen 2 Yr.
CAGR 9%
135,000
$13,000
130,000
125,000
$11,000
120,000
$9,000
115,000
110,000
$7,000
105,000
$5,000
(000s)
100,000
2013
2014
Pathology Revenue
2015
Specimens Processed
Specimen growth outpacing impact of reimbursement cuts in 2014

16
Imaging
~$3B Market Size Globally
XX%
2015 Revenue
$22.4M
67% CAGR
Imaging

New Sales Hires/Increased Productivity
Expanding Clinical Data
A New Standard in GI Imaging
18
Fuse Gaining Traction

$30,000
$25,000
22,382
$20,000
5,429
14,979
$15,000
4,865
$10,000
$5,000
8,072
16,953
3,372
10,114
4,700
$0
2013
(000s)
2014
Domestic Imaging
2015
International Imaging
19
Fuse Installed Base Now Over 100 Systems

End-User Installed Base by Quarter
150
123
125
104
100
86
75
50
61
41
8
25
32
26
20
10
51
91
78
66
33
0
Q4 2014
Q1 2015
Domestic - End Customer
Q2 2015
Q3 2015
Int - End Customer
Q4 2015
Linear (Total)
81% of Fuse customers buy our Single Use Products

20
Limited View with 170 Colonoscopy
21
Panoramic 330 Field of View with Fuse
22
170
Field of View
23
330
Field of View
24
Fuse Enabling Technologies

Integrating LEDs and Multiple Imagers
Traditional Colonoscope
Light Guides
1 Imager
Fuse Colonoscope
LEDs
3 Imagers
25
Compelling Clinical and

Cost-Effectiveness Data
Fuse detected 69% more pre-cancerous
polyps, improving quality of care
Fuse provides confidence with a negative
exam. Fuse found pre-cancerous polyps in
6% of patients which had normal findings by
standard colonoscopy
9% of patients were recalled on an earlier
interval. GI physician can retain and attract
more patients
Potential $300M annual cost savings in U.S.

alone
Sources:
Gralnek IM, Siersema PD, Rex DK, et al. Standard forward-viewing colonoscopy versus full-spectrum
endoscopy: an international, multicentre, randomised, tandem colonoscopy trial. The Lancet Oncology
2014; 15: 353-60.
Hassan, et al, Cost-effectiveness of full spectrum endoscopy colonoscopy for colorectal cancer
screening , Digestive and Liver Disease, 2015
26
Expanding Set of Clinical Data

Improve(s) the efficacy
of colorectal cancer screenings
Gralnek et al., The Lancet Oncology
An advancement in colonoscopy
Papanikolaou et al., UEGW 2014 Abstract
More effective in identifying

multiple polyps
Hassan et al., UEGW 2014 Abstract
Advancement time to the cecum

was faster with Fuse
Neumann et al., UEGW 2014 Abstract
Greatly expanded view

of the upper GI tract
Stein et al., NYSGE Abstract 2013
27
Direct to Patient: Insist on Fuse!
28
Fuse Adds Value For All Stakeholders

Physician
Significant GI advance
Differentiated practice, more procedures
Hospital/ASC
Differentiated technology
Marketing advantage
Payor
Cost saving technology
Addressing problem of interval cancer
Patient
Reduced fear of missed polyps
Increased confidence in negative exam
29
The EndoChoice Platform

Serving the GI Caregiver with Differentiated Products and Services
Single-Use Products
Pathology
Imaging
2015 Revenue $36.1M
2015 Revenue $13.9M
2015 Revenue $22.4M
Total 2015 Revenue: $72.3M Total 2-Year CAGR: 18%

Leveraging a Unified Sales Team.
Driving Commercial Success
31
Multi-Pronged Growth Strategy
Expand
US Sales Force
Launch New
Products
Enter New
International Markets
GPO Contracts/
Creative Bundling
32
US Sales Force Expansion & Optimization

Territory Managers (TMs)
sell entire portfolio.
Account Managers (AMs)
focused exclusively on Single-Use Products and Pathology.
TM
35
TM
45
SUP
Pathology
SUP
Pathology
Imaging
December 2013
December 2014
TM
Imaging
SUP
Pathology
55
70
Territory
SUP
Managers
Pathology
Imaging
AM
20
SUP
Pathology
Q4 Expansion 2015
33
Engagement With Major GPOs
Fuse Contract
Scope Services Contract
SUP Contract
34
Strategic International Expansion

Phase 1
Europe
Phase 2
Asia
Phase 4
LATAM
Phase 3
MEA
Direct Sales in Germany and Israel

Distribution partners in 30 countries
35
International Revenue Growing Marginally Faster than

Domestic on Constant Currency Basis
$12,000
$10,000
7,539
$8,000
$6,000
$4,000
6,849
5,434
5,341
4,865
3,372
$2,000
2,062
1,984
2,198
2013
2014
2015
$0
(000s)
Single-Use Products
Imaging
2 Yr. CAGR of 33% on constant currency basis

36
Life Cycle Revenue Potential

Per New ASC Customer
2 Room Center
Revenue Value
One Time Sale
Fuse Video System, 2 Rooms
$440,000
15%
Capital
Recurring Revenue
Devices
$160,000
EndoKits
$160,000
Endoscope Reprocessing
$80,000
Endoscope Service
$120,000
Pathology Billing
$2,000,000
Total Recurring Revenue Over 5 Years
$2,520,000
5 Yr. Revenue Potential For Each

New Customer
$2,960,000
85%
Recurring
37
Single-Use Products
Imaging/Fuse
Pathology
Leveraging The EndoChoice Platform

$100
$30
$8
This ASC successfully leverages EndoChoices product platform
Note: Cost of products and services refers to cost per use / procedure
38
Growth Drivers for 2016
Single-Use Products
Imaging/Fuse
Pathology
Automated ADR
Reporting
New Product
Launches
Expanding
International Footprint
Expanding
International Footprint
Integration into EMR

systems
20 New Account
Managers in US
Expanding to 55
Territory Managers
20 New Account
Managers in US
2500+ US Customers
and GPO Contracts
Expanding Set of
Clinical Data
39
Strong Financial Profile
40
Consistent Revenue Growth Across

All Product Lines
$100,000
$90,000
$80,000
72,302
$70,000
$60,000
$50,000
61,419
50,891
22,382
14,979
8,072
$40,000
$30,000
30,700
33,845
36,076
12,119
12,595
13,844
2013
2014
2015
Single-Use Products
Imaging
$20,000
$10,000
$0
(000s)
Pathology
First sales of Fuse Generation 1 in late 2013 to gain experience;

Started deliveries of Gen 2 in Q2 2015
41
Path To Gross Margin Improvement

Gain Scale in Fuse Manufacturing
Evolution of Fuse System Margin
Current State
Fixed Manufacturing Overhead

Units Produced
Target
$11.5M
100
$15.0M
500
Fixed OH per system

Direct Materials per system
Direct Labor per system
$115
$75
$15
$30
$53
$12
Total Costs/System
$205
$95
US ASP/System
$205
$205
Gross Margin%
0%
54%
Evolution of Corporate Gross Margin

Business Unit
Percent of
Revenue
Current
Margin%
Target
Margin%
GI Equipment and Supplies

Pathology
Total/Blended
80%
20%
-
26%
61%
33%
54%
60%
55%
42
Path To Profitability
Longer Term Operating Goals
Long Term Goals
Gross Margin
~ 55%
Sales & Marketing
~ 21%
General & Administrative
~ 10%
Research & Development
~ 7%
Operating income
~17%
Gross margin expansion will be driven by:

Spreading fixed manufacturing costs over higher unit volumes
Design programs to reduce parts and improve manufacturability
Greater purchasing leverage with vendors on higher volumes
These objectives are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond
the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and
those variations may be material. For discussion of some of the important factors that could cause these variations, please see the risks and uncertainties in our Form S-1, as
amended, and our Form 10-Q for the period ended September 30, 2015. Nothing in this presentation should be regarded as a representation that these goals will be
achieved, and we undertake no duty to update our goals.
43
EndoChoice at a Glance
Platform GI Company
Differentiated Tech
$6B Addressable Market
Growth Drivers
Single Use Products
Pathology
Imaging
2015 Revenue of
$72.3M,
19% growth YoY
Shipped 82 Fuse
$6B Global
end-user systems,
GI market,
year over year
growing annually
growth of 116%
at 7%
New Products,
Expanding Sales
Team, 2,500+ US
customers
44

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EndoChoice Corporate Presentation

$6B Addressable Market

Single Use Products

EndoChoice Platform for GI Endoscopy

Source: iData & EndoChoice Internal Data

Proven Track Record in GI Innovation

ASP Range of $2 to $225,000

Three Growth Engines

2015 Revenue $36.1M

2015 Revenue $13.9M

2015 Revenue $22.4M

Total 2015 Revenue: $72.3M 2 Year CAGR: 18%

The EndoChoice Platform

2016 SUP Growth Drivers

Stable SUP Revenue Underpins Model

Domestic Single-Use Products

International Single-Use Products

Presence in >2,500 GI departments (1/3 of U.S. market)

2016 SUP Growth Drivers

Specimen growth outpacing impact of reimbursement cuts in 2014

2016 SUP Growth Drivers

A New Standard in GI Imaging

Fuse Gaining Traction

Fuse Installed Base Now Over 100 Systems

Domestic - End Customer

Int - End Customer

81% of Fuse customers buy our Single Use Products

Limited View with 170 Colonoscopy

Panoramic 330 Field of View with Fuse

Fuse Enabling Technologies

Compelling Clinical and

Potential $300M annual cost savings in U.S.

Expanding Set of Clinical Data

More effective in identifying

Advancement time to the cecum

Greatly expanded view

Direct to Patient: Insist on Fuse!

Fuse Adds Value For All Stakeholders

The EndoChoice Platform

2015 Revenue $36.1M

2015 Revenue $13.9M

2015 Revenue $22.4M

Total 2015 Revenue: $72.3M Total 2-Year CAGR: 18%

Driving Commercial Success

Multi-Pronged Growth Strategy

US Sales Force Expansion & Optimization

Engagement With Major GPOs

Strategic International Expansion

Direct Sales in Germany and Israel

International Revenue Growing Marginally Faster than

2 Yr. CAGR of 33% on constant currency basis

Life Cycle Revenue Potential

Total Recurring Revenue Over 5 Years

5 Yr. Revenue Potential For Each

Leveraging The EndoChoice Platform

Growth Drivers for 2016

Integration into EMR

Strong Financial Profile

Consistent Revenue Growth Across