Investor Presentation

March, 2017
Forward-Looking Statements
The statements and discussions contained in this presentation that are not historical facts constitute forward-looking
statements, which may be identified by the use of forward-looking words, including but not limited to, believes, expects,
may, intends, anticipates, plans, estimates and analogous or similar expressions intended to identify forward-
looking statements. These forward-looking statements and estimates as to future performance, estimates as to future
valuations and other statements contained herein regarding matters that are not historical facts, are only predictions, and
that actual events or results may differ materially. We cannot assure or guarantee you that any future results described in
this presentation will be achieved, and actual results could vary materially from those reflected in such forward-looking
statements due to numerous known and unknown risks and uncertainties, including the Risk Factors described in our
filings with the Ontario Securities Commission and the U.S. Securities and Exchange Commission. Information contained
in this presentation has been compiled from sources believed to be credible and reliable. However, we cannot guarantee
such credibility and reliability. The forecasts and projections of events contained herein are based upon subjective
valuations, analyses and personal opinions. All forward-looking statements are qualified in their entirety by this cautionary
statement, and Novadaq undertakes no obligation to revise or update this presentation to reflect events or circumstances
after the date hereof.

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Such an offer or
solicitation, if made, will only be made pursuant to an offering memorandum and definitive subscription documents.

NOVADAQ, SPY, PINPOINT, LUNA and the illumination square design are registered trademarks of NOVADAQ
Technologies, Inc. SPY PHI is a trademark of NOVADAQ Technologies, Inc. DermACELL is a registered trademark of
LifeNet Health, Inc..

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Large Market Opportunity

Platform Technology
U.S. Market Annual Opportunity
NOVADAQ is the only company that
provides proven comprehensive
fluorescence imaging solutions
that improve clinical outcomes and
reduce healthcare costs in minimally $2.7B
invasive and open surgeries
SPY Imaging
Technology
SPY Fluorescence Imaging
Enables precise real-time Breast
visualization of physiologic blood Tissue
flow in vessels, tissue perfusion and
critical anatomical structures
$400M

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 SPY Fluorescence Imaging

The surgeon ICG is injected SPY Technology Real-time fluorescence

positions the SPY intravenously and emits near infrared is captured and
technology over the rapidly binds to light causing images are displayed
area of interest proteins in ICG to fluoresce on a video monitor in
circulating blood the OR

SPY Elite or LUNA

SPY PHI

PINPOINT

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Comprehensive Solution Provider

Directly Sold Products Licensed Product

SPY ELITE PINPOINT LUNA

OPEN MINIMALLY INVASIVE WOUND
SURGERY SURGERY HEALING
FireFly
ROBOTIC SURGERY
Since 2015, NOVADAQ is
the exclusive worldwide
distributor of LifeNet
Healths Dermacell tissue
products
partnership with
Leverages clinical and call
point synergy between the
use of tissue matrices and
the ability to assess the
quality of tissue perfusion

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 Key Applications U.S. Market

Annual Emerging Annual

Applications Existing Procedures
Opportunity Procedures* Opportunity

GYN Onc 200,000

Cancer and Breast Reconstruction 100,000 Breast Surgery 250,000
Head and Neck Reconstruction 150,000 Lymphedema 150,000
Reconstructive Gastrointestinal Surgery 450,000 Melanoma 150,000
Surgeries Gastric Cancer 100,000

Vascular Surgery 600,000+

Non-Cancer
Laparoscopic Cholecystectomy 900,000+
Surgeries Coronary Artery Bypass Surgery 350,000

Diabetic, Arterial and Venous

Wound Care Stasis Ulcers
600,000

*not yet cleared for market by the U.S. FDA

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 Seeing the Formerly Unseen

Breast Reconstruction Colorectal Surgery Laparoscopic Cholecystectomy

ONE Non-perfused Cystic duct
Cystic artery

TECHNOLOGY Poor perfusion colon

MULTIPLE
APPLICATIONS
Non-perfused Common
colon Bile Duct
Visualize tissue perfusion Assess tissue perfusion, guide transection margins Visualize critical anatomy
Visualizing
physiologic blood
flow in vessels,
tissue perfusion
and critical
Head and Neck
anatomy enables Gynecological Oncology* Reconstruction
Vascular Surgery
surgeons to
take action Lymph node Lymph node Non-perfused
toe

in surgery that
improves
outcomes
Adequate
perfusion

Visualize tissue perfusion, lymph nodes* Visualize blood flow and tissue perfusion
Visualize tissue perfusion
* Not yet cleared by U.S. FDA 3/1/2017 |7
Compelling Advantages

NOVADAQ offers the ONLY imaging technology that allows real time,
visual physiologic assessment and objective analysis of blood flow in vessels
and tissue perfusion in the operating room

Improved Patient Care Economic Process & Workflow

Point-of-Care imaging: Reduces rates of Supports critical

vascular flow, perfusion,
lymph nodes
Improves outcomes
Enables procedures
post-op complications decisions in operating
room
Avoidable post-op
complication costs range Reduces procedure
from $10k $100k time

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SPY Benefits Breast Reconstruction
Mayo Clinic Study, Jacobson et al (n=942)

Authors Breast Reconstruction

estimated the Without SPY With SPY
2011-2013
potential
avoidance of 59 No. of Patients 590 352
episodes of skin
necrosis over 5 Any Complications 100 (17%) 21 (6%)
years through
the use of SPY
Technology Skin Necrosis 32 (6%) 2 (1%)

Nipple Sparing Procedures 28% 32%

Single Stage, Direct Implants 7% 23%

Potential
cost savings of
~$850K Use of SPY enabled more nipple sparing and
over 5-yrs direct implant reconstruction procedures

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SPY Benefits Colorectal Surgery
SPY Technology
provides
Results of Two Multi-Center Clinical Studies: ACTIONABLE
images that
US: Stamos, et al (n=139) enable surgeons
Europe: Ris, et al (n=460)
to reduce
anastomotic leaks
and complications
Anastomotic Leak Rate in Colon Resections

3% - 15%
Cost of complication
$29k - $95k
PINPOINT drove a change in surgical plan
in 8% of patients

Anastomotic leak rates were0%

1% 2% in those patients where a change was made

Traditional PINPOINT Imaging

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Lymphatic Mapping

Lymph Node Mapping in Gynecological Oncology

Memorial Sloan Kettering Study, Abu-Rustum et al (n=227)

Study Results: Visualization of lymph node in

Enabling Surgeons to simultaneous White Light, SPY, PINPOINT
Visualize Lymph Nodes More Efficiently and CSF display modes
Lymph Node
Overall detection rate
81% with Methylene Blue
Lymph Node
Overall detection rate with
95% Indocyanine Green

Lymph Node
Bilateral detection rate
61% with Methylene Blue

Bilateral detection rate Lymph Node

79% with Indocyanine Green

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Fluorescence Imaging in Lymphatic Mapping

Goal is to obtain FDA approved

label claim for Lymphatic
Mapping
Randomized, controlled, multi-
center North American study of
150 patients with gynecological
cancer
Investigators are Society of
Gynecological Oncology
Leadership- Principles are
Memorial Sloan Kettering and
MD Anderson
Recruitment to be completed
Q1-2017

Khoury-Collado F, St Clair C, Abu-Rustum NR. Oncologist 2016 3/1/2017 | 12

DermACELL Breast Reconstruction
The Next Generation ADM
Comparison of Different Acellular Dermal Matrix (ADM) in Breast Reconstruction: The 50/50 Study.
Pittman et al. 100 consecutive patient study -- 50 patients with Alloderm, 50 with Dermacell, 60 day
minimum follow-up.

DermACELL AlloDerm p

Red Breast 0 13 (26%) 1x10-4

Drain Duration (days) 15 21 0.001 Patients reconstructed

with Dermacell have
IMPROVED
Infection 0 2 (4%) 0.494
OUTCOMES across
several metrics
Seroma 5 (10%) 12 (24%) 0.108

Reconstructive Failure 0 4 (8%) 0.117

TA Pittman, KL Fan, A Knapp, S Frantz, SL Spear. Georgetown University School of Medicine Accepted Manuscript. 2016.

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 Leadership and Validation in the Field

75+ 230+
250,000+

Documented Peer Reviewed

75+
Applications Publications >40%
Growth in
260,000+ 930+ Recurring Revenue

SPY Technology SPY Systems

Procedures Installed Base*

* Data as of Dec 2016 3/1/2017 | 14

Leveraging the Model

Multiple Recurring
Large installed base comprehensive revenue
solutions stream
Top 50 Cancer hospitals use SPY technology today
Call-point synergies
One surgical call point, opportunity across multiple specialties
Propagation across accounts and systems
Extensive body
Flexible acquisition models drive hospital sales of supporting
clinical evidence
Sales & service contracts
Large
Component sales, cameras, scopes, disposables, software, etc. installed
base
Product innovation and leadership
Broadest portfolio for use across open and MIS applications
On-going clinical studies Call point Flexible
synergies acquisition
230+ peer-reviewed publications models

Superior medical and peer to peer education

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Installed Base Opportunity

Hospital Systems per Potential Installed

Setting Hospital Base

550 Teaching 6.0 3K Systems

Expected
recurring revenue
Hospitals
49 of $100K per
5,174 Community system drives
Hospitals 2.5 13K Systems
$2.7B
Annual
5,260 Ambulatory Opportunity
2.0
11K Systems
Surgery Centers

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Sales Process

Physician Clinical and Hospital

Evaluation Economic Benefit Administration
& Buy-in Analysis (VAC committee)

Identify appropriate & available budget within hospital

Combination of
Consumables & Service
Capital Equipment Capital
Components Contracts
& Recurring

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Case Study Large Teaching Hospital

Background Benefits

1,183 beds Multiple system

>50K annual admissions Solution placements ensure SPY
>60K annual surgeries Technology is readily available
Flexible model
enabled hospital to identify Multi-year agreement creates
Situation funding within service and barrier
73 to acquisition of
operating budgets competitive technology
NOVADAQ was engaged in
Closed a 4 system
capital purchase discussions on
4 systems Fast cycle time acquisition
agreement over 3 years occurred in <30 days
No capital budget
including service and
49
consumables Long term committed
at hospital
recurring revenue
Competitive for NOVADAQ

trialing underway

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Continuous Innovation and Leadership
NOVADAQ Clinical Investigations Continuous Innovation
Development Efforts and Studies Enables

Barriers of entry remain

Performance high
improvements to
existing technologies

Additional Deeper penetration into

lymphatic studies hospitals with new
Innovation designed indications and
to address gaps in improved products
continuum of care
Studies in
collaboration with
medical societies Expanded market
Functional innovation opportunities
delivering additional (i.e. lap
clinical and economic chole/SAGES)
benefit Drives recurring revenue

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PINPOINT Growth Drivers New Product Launches

S1 Camera 5mm Laparoscopes SPYPHI Portable Handheld Imager

Brilliant, high-definition, Workhorse of surgery Superior quality images and
white light video convenience
Supports ASC market
Added benefit of SPY Segue to re-enter CABG market
entry and penetration with small footprint, convenience &
Fluorescence imaging
superior image
Benefit Benefit
Results in incremental Allows for increased Benefit
revenue, increases penetration into lap chole, Enables entry into ASC market- focus on
competitiveness CRS, gynecological oncology, mastectomy, plastics and breast
thyroid surgery reconstruction and lymphatic mapping*

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*Lymphatic mapping is not yet cleared for market by the U.S. FDA
SPY Technology versus Competition
Competitive
Fluorescence SPY Technology Benefits

Enables accurate, real-

Image dark and noisy Image vibrant and clear time
Perfusion analysis

Arbitrary image
adjustment compromises Image adjustment stays Enables better tissue
meaningful tissue true assessment
perfusion assessment

Intensity is highly
Intensity is maintained at Enables superior
dependent on distance to
any distance imaging
tissue

Single fluorescence Multiple fluorescence Enables broader

mode modes potential application

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Recent Quarterly Results

Q4-
2016
Q4-
2015
Change
Y/Y
Q4 2016 Metrics

Revenue (millions)
Recurring Revenue
Recurring $9.6 $6.7 + 43%
43% growth
Capital $4.8 $10.3 - 53%
Installed Base
Total Direct $14.4 $17.0 - 15% 58 systems placed
Indirect (Partners/Intl) $5.7 $3.0 + 89%
Revenue per
Total $20.1 $20.0 + 1% System
$10,296

Installed Base

Direct Systems 933 710 + 31%

Data as of 4Q 2016 3/1/2017 | 22

 Financial Performance
Total Revenue ($mn) Recurring Revenue ($mn)

$22.2 $9.6
$21.1
$20.1 $8.6

$7.8
$17.7
$7.0

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Gross 71% 72% 72% 39%*

Growth 41% 38% 42% 43%
Margin: Rate:
* Reflects impact of a one-time inventory write-off 3/1/2017 | 23
Financial Objectives

Total Revenue: $98mn - $102mn

Growth (y/y): 22% - 27%
2017 Financial Guidance
Recurring Revenue: $48mn - $50mn
Growth: (y/y): 45% - 51%

Shift revenue mix from capital to recurring revenue

Manage opportunity vs. profitability
Long Term Objectives
Maintain gross profits in the 65%-70% range

Maintain a strong cash position

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Leading Fluorescence Imaging Technology
Differentiated & Disruptive
Leader in fluorescence imaging technology
Technology

Large Untapped ~5% Penetration

Market Opportunity >3.5mn annual procedures

Strategy focused on
More predictable, longer runway, better quality
Recurring Revenue

Meaningful Innovation, clinical data, IP, market leadership

Growth Drivers position; value proposition (clinical and economic)

Clinical and Cost Reduced costs benefitting

Benefits healthcare system and patient

Solid Growth 2017 Rev Guidance: $98-102 million;

Prospects 22-27% YoY growth
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