Virgílio Bento, PhD

Founder and CEO SWORD Health

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PHYSICAL THERAPY HAS NOT CHANGED IN THE LAST 50 YEARS

1960 2018
2
 Physical therapists are scarce, costly and non-scalable

7 th
$17B+ 74
Hardest job to Spent in wages with PTs per 100,000
fill in the US1 PTs (US)2 Americans2

1 Source: Forbes – “The toughest jobs to fill in 2017”

2 Source: SWORD’s internal estimates and industry data.
△ PT : Physical Therapists 3
 Today, one hour of therapy requires one hour of a PT
100% labor-intensive

$47.2 $110 $2750

PT mean hourly wage1 Payer fee per hour Payer costs per
of therapy provided2 60-day episode of care2

Implying prohibitive costs for Insurance companies, Self-insured Employers and

Government providers.
1 Source: US Data retrieved from Federal Register Volume 83, Issue 134 (July 12, 2018). 4
2 Source: SWORD’s internal estimates and industry data.
 And people who are 65 and older are growing faster
than total U.S. Population1

45 14
40
12
35
10
30

25 8
M %
20 6
Number 15 Percentage
(in millions) 4 (of population)
10
2
5

0 0
1900 2010

Exponentiating the need for physical therapy2

1 Source: https://www.census.gov/newsroom/releases/archives/2010_census/cb11-cn192.html 5
2 Source: Briggs et al, 2016. Musculoskeletal Health Conditions Represent a Global Threat to Healthy Aging: A Report for the 2015 World Health Organization World
THIS IS WHY WE’VE CREATED THE NEXT 50 YEARS OF PHYSICAL THERAPY
CLICK HERE TO DISCOVER THE FUTURE

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Physical Therapy is a rule-based, one-to-one job
We turned it into a digitized, scalable service

WE´VE
By creating a way to UNLOCKED
digitize the The potential to automate
patient's motion with the Physical Therapist role.
clinical precision.

AND
Patients to recover ENABLED
independently at Home
with SWORD
Digital Therapists.

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 SWORD is powered by the most advanced
technology platform in this field THE
DIGESTIVE SYSTEM

MOTION TRACKERS DIGITAL THERAPIST SWORD PORTAL

Small and lightweight, they AI-engine that guides the patient through AI-aided prescription of rehabilitation
digitize patient’s motion feedback on performance at Home. sessions and progress assessment.
with clinical precision. 8
 Our Digital Therapist recovers patients faster than the Human therapist1

% CHANGE FROM BASELINE (TUG) SWORD DIGITAL THERAPIST

HUMAN THERAPIST
+57

+28

Baseline (Pre-op) 4 Weeks 8 Weeks

“Home-based Rehabilitation With A Novel Digital Biofeedback System versus

Conventional In-person Rehabilitation after Total Knee Replacement: afeasibility study”
Scientific Reports volume 8, Article number: 11299 (2018)

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1 Source: Peer-reviewed clinical data for a 60 day-rehabilitation program including Hip and Knee replacement patients (N=120)
 An NPS of 91 is representative of how much patients love
our Digital Therapists1
100 97
91
90

80 75

70 66 64
60
54
51
50 46

40
30
30

20

10

10
1
Source: Patient engagement data for a 60 day-rehabilitation program including Hip and Knee replacement patients (N=120)
 Patient adherence is very conclusive1

100% 110% *
82%
Did sessions on Weekly Adherence Completed the 60-day
weekends (5 days per week) rehab program

“I absolutely recommend this “The best part is the ability to “I have a niece who is a
therapy! It compels you to recover from your own house, physical therapist and works in
achieve certain goals and it having therapy more than a clinic nearby my house. I have
makes you more accountable to once a day. I could even do told her that she has to come
your own therapy.” therapy while on vacations.” and learn with SWORD.”
Shoulder Patient Knee replacement Patient Shoulder Patient

1
Source: Patient adherence data for a 60 day-rehabilitation program including Hip and Knee replacement patients (N=120)
*
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On average, patient’s adherence to treatment was greater than 5 days/week (i.e., including weekends)
 We’re vertically integrating our solution and
disintermediating the Physical therapy Industry

Before SWORD After SWORD

Payers1 Payers1

Legacy therapy providers

We’re pioneering the Man+Machine model in this field, augmenting our team of PTs
and creating a global tech-enabled therapy provider with $0 spent in infrastructure.

1 Insurance
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companies, Government providers, Self-insured corporations.
 We’ve reduced the cost of providing Physical therapy by 73%1

Legacy
SWORD
providers
Legacy
SWORD
providers

PT time required 24h 5h2

73% Lower
Cost of Service3
(HR) $1128 $244

Cost of Service
(Technology) - $54

TOTAL $1120 $298

$1120 $298
60-day rehabilitation program

1 Cost estimate for the US Physical Therapy market.

2 Includes patient onboarding, 2 additional visits and a remote supervision.
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3 Considering a hourly wage of $47 for a PT. Source: US Data retrieved from Federal Register Volume 83, Issue 134 (July 12, 2018).
SWORD is driving the shift to value-based Healthcare

Legacy
providers SWORD

Revenue model Fee per 30 min Flat fee per

of therapy time patient treated

Incentive Extend the recovery Recover each patient

time as fast as possible

Reach Local Global

(Fee-for-service) (Value-based)

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 SWORD has a $107B+ Total Addressable Market
Growing at a CAGR of 7%

Musculoskeletal disorders that we treat

Number of
Patients1
9.4 M + 5.1 M + 26.7 M + 17.9 M + 11.2 M
(per year) Knee Hip Low back pain Shoulder Neck

x
Average $1524 per patient recovered

=
$107B+
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1
Just considering the US market. Source: SWORD’s internal estimates and industry data.
 Our growth is accelerating
as we start converting the sales cycle
Bookings
$ Average ACV: $125k
765K
Sales Cycle: 7.8 Months

Booked in 2018: $703k

(as of November 2018)
371K

Type of customers: Employers,

Health plans, Workers’ Comp.
93K

Average Gross margin: 70%

Q118 Q218 Q318 Q418
(Projected)

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 Our Land & Expand strategy works

World’s Top 20
Case Study: Insurance company

2018 2019
Pathologies: Neck pain Pathologies: Neck pain, Shoulder, Knee
Number of patients: 130 Number of patients: 550
ACV: $97k ACV: $264k

275% Annual expansion

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 Our IP Portfolio is systemic, reinforcing our moat

5 Method and system for determining a correct reproduction of a

1 System and method for evaluating the motion of a subject movement

Method and device for synchronizing data packets from Method and system for optimizing session exercise order of a
2 6
embedded data sensors monitoring body motion of a patient personalized prescribed exercise therapy plan for monitoring
compliance
3 Method and system for monitoring compliance of a patient to a 7 Method and system for calibrating sensors
personalized prescribed exercise therapy plan

4 8 Method and system determining existence of magnetic

A system for tracking human motion disturbances 18
Our technical excellence derives from a highly-talented,
highly-engaged, multidisciplinary team…

35 60% One of the best Algorithm teams in the

world.
Team Size Team NPS
End-to-end control and domain of our
technological solution (Hardware → Web)

Reasons to work at SWORD Mission-driven team

60% 46% 31% Passionate clinical team with extensive

Human Technical Learning experience
Mission challenge

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 … supported by a stellar Clinical Advisory Board
Jorge Lains, MD
.
President of the International
Society of Physical &
Rehabilitation Medicine
.
Clinical Lead, Rovisco Pais
Rehabilitation Centre
Jose Rodriguez, MD
. Columbia University College of
Physicians & Surgeons
.
Retired US Army Reserve Major
.
Editorial Boards of the Journal
of Arthroplasty, Bone and Joint
Journal, Clinical Orthopedics
and Related Research
Gerard Francisco, MD, PhD
. Boardof Directors, American
Board of Physical Rehabilitation
and Medicine
Chairman and Professor,
. UCLA
McGovern Medical School, PRM
Department
Chris Furmansky, PhD
Director of Innovation Stanford
.
Health Care (2013-2016)
PhD in Cognitive Psychology,
.
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 Leadership

Virgílio Bento, PhD Marcio Colunas

Founder & Chief Executive Officer Founder & Chief Scientific Officer
PhD in Electronics Engineering by Uni. Aveiro Past: Co-founded Findster
Past: Co-founded Findster, Invited Expert
European Commission

Catarina Prata, PhD Stephen van der Watt

Chief of Staff Chief Revenue Officer
PhD in Law by UCLA Past: VP of Sales 2ndMD, Medici,
Vitality Group
Past: Fulbright Scholar, Research officer
Amnesty International

Fernando Correia, MD Tiago Seabra

Chief Medical Officer VP of Engineering
Past: Head of Development JumiaPay,
Past: Fellow of the European Board of
Senior Dev Rocket Internet
Neurology

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 We’re the definition of capital efficiency
(Developing a deep tech solution)

$ 4.1M Raised since inception. With this we have:

Developed in-house Hardware + Firmware + Algorithms + Software.

Obtained FDA, CE, TGA and Canada Health medical certifications.

Performed an extended clinical validation.

Became the first company to create an AI entity that delivers better therapy than a Human.

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 We’re now raising $10M to execute our Growth strategy
and keep our Clinical and Technology lead

Series A Milestones

Validate the US sales machine

Direct sales playbook with each consultant acquiring 8 self-insured companies (5000 employees
each) per year with a population engagement rate of 4%.

Replicate the clinical superiority of our digital therapist in other pathologies.

Replicate the clinical validation achieved for Hip and Knee patients in Shoulder, Neck and Low-
back pathologies (30% superiority against the human therapeutic intervention).

Fully automate the clinical components of prescription/evaluation.

Through our large pool of patients’ data, expand our machine learning algorithms towards a fully
automation of the prescription/evaluation management loops.
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Teladoc got to a $5B valuation by digitizing ambulatory
care ($29B TAM)

SWORD is digitizing physical therapy ($107B TAM) and

is the flagship company in this new field

We’ll be the next Big Public company in the Digital

Health space.

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 Our 50-year impact in the world*

Cut in half Healthcare costs with physical therapy

By greatly reducing the #1 cost driver in the physical therapy world - the intervention from the human therapist.

Enable patients to recover at home

By creating and proving that a technology is able to recover patients faster than the human therapist.

* If we’re successful. 25
 Thanks

Virgílio Bento

@vafbento linkedin.com/in/vbento vbento@swordhealth.com