Electromed, Inc. · AMEX:ELMD
Electromed — Investor Presentation (August 2023)
25 slides from Electromed's investor presentation, August 2023
Slide 1: Electromed, Inc. Investor Presentation
Electromed, Inc. Investor Presentation August 2023 NYSE American: ELMD INNOVATION LEADER IN AIRWAY CLEARANCE TECHNOLOGIES
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this press release constitute forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “int
Slide 3: Who We Are
Who We Are Key Stats: Headquarters: Ticker: Established: Electromed, Inc. is a New Prague, MN ELMD 1992 growing medical device company focused on airway management to help people around the world Annual Revenue: Market Cap: Share Count: breathe better, stay $48.1M $85M 8.7M healthier, and lead activ
Slide 4: Electromed Overview
Electromed Overview Net Revenue ($M)1 » Above market growth and profitable medical technology company » Leader in the large and expanding airway clearance market » SmartVest® High Frequency Chest Wall Oscillation (“HFCWO”) technology supported by clinical outcomes data with strong reimbursement Net
Slide 5: What is Bronchiectasis?
What is Bronchiectasis? » An irreversible lung condition characterized by abnormal widening of one or more of the bronchi (airways) » End result of repeated episodes of pulmonary inflammation and Disease Misdiagnosed infection » Damaged airways allow excess mucus to accumulate, increasing risk of in
Slide 6: US Market
US Market Large, Growing and Underpenetrated Market Estimated HFCWO Estimated bronchiectasis bronchiectasis penetration, treated prevalence, population³ DIAGNOSED1, 3 Bronchiectasis HFCWO Estimated penetration ~20%³ bronchiectasis prevalence, UNDIAGNOSED1,4 HFCWO market growing at mid-single digits
Slide 7: How is Bronchiectasis Treated?
How is Bronchiectasis Treated? Benefits of HFCWO Therapy How HFCWO Works » Significantly lower risk of respiratory Mini coughs loosen, thin and infections that can be serious or propel mucus toward major life-threatening (e.g., pneumonia) airways » Therapy can be done at home » Improved quality of l
Slide 8: History of Innovation
History of Innovation Introduced Commenced Development Introduced Portable Programmable Introduced Reversible Introduced Introduced of Wireless Connectivity HFCWO Device HFCWO Device Wrap Garment SmartVest® Colors SmartVest SQL® Reporting Solution 2000 2000 2001 2002 20032004 20062007 2008 2008 2010
Slide 9: SmartVest Clearway®
SmartVest Clearway® Only New HFCWO Device on the Market An enhanced user experience! » Smaller, lighter and intuitive user interface for better patient adherence » Patient remote monitoring enabled » More portable and easier for travel » Will contribute to both top line and gross margin growth Inves
Slide 10: SmartVest Connect®
SmartVest Connect® Allowing Patients and Physicians to Track Treatment Progress » SmartVest Connect® wireless patient monitoring – accessible for patients via a simple App download and Bluetooth® connection » SmartVest® paired with SmartVest Connect® gives healthcare teams and therapy users access a
Slide 11: Why SmartVest®?
Why SmartVest®? Significant Value for Patients, Providers and Payers For Patients For Physicians For Payers • SmartVest® Takes the Pressure OffTM • SmartVest® Takes the Pressure OffTM • SmartVest® can significantly reduce patients physicians and clinic personnel costs and improve outcomes ‒ SmartVes
Slide 12: Clinical Evidence
Clinical Evidence Electromed has Published Studies Showing Effectiveness of HFCWO to Treat Bronchiectasis % Therapy with HFCWO demonstrated key health outcomes improved in post- compared to pre-index period: cough, 59 all-cause hospitalizations, pneumonia and pulmonary hospitalizations. Fewer hospit
Slide 13: Markets We Serve
Markets We Serve Net Revenue Breakdown, Fiscal Year 2023 Homecare Hospitals International % of Net Revenue: 95% 4% 1% Sales Points: Direct to physicians Individual hospitals; Distributors adult pulmonology clinics member hospitals of group cystic fibrosis centers purchasing organizations neuromuscul
Slide 14: Direct-to-Patient Model - Homecare
Direct-to-Patient Model - Homecare Drives Attractive Margin Profile Traditional Medical Manufacturer $ DME $ Patient Equipment Channel vs. Direct-to-Patient Distribution Electromed $$ Patient (Electromed) ELMD expects gross margins in the mid-70s and improving with the SmartVest® Clearway® Investor
Slide 15: Net Revenue Breakdown - $48.1M (FY'23)
Net Revenue Breakdown - $48.1M (FY’23) Homecare By By Setting Homecare By Payer Referral Volume Home Care¹ Medicare Bronchiectasis Commercial / Hospitals Cystic Fibrosis Other2 International Medicaid Neuromuscular 1 Includes $1.5 million from home care 2 Includes Managed Medicare and COPD/COPD Relat
Slide 16: Growth Strategy
Growth Strategy How Will Electromed Increase Market Share? » Continued sales force expansion along with complementary infrastructure investments » Direct-to-consumer and physician marketing to increase brand awareness and revenue » Best-in-class customer care and support » Develop and promulgate the
Slide 17: Long-Term Objectives
Long-Term Objectives Mid-teens revenue growth • Increase market share; deeper penetration of current SmartVest® prescribers Operating margin improvement • Operating leverage as revenue increases We are committed to delivering long-term profitable growth Investor Presentation | 17
Slide 18: Why Invest?
Why Invest? HFCWO Industry Drivers Aging Higher Growing The Healthcare Treatment population incidence physician Affordable reform moving moving to of chronic awareness of Care Act to fee-for- lower cost lung diseases diseases such as penalizes for outcomes settings bronchiectasis readmission (homeca
Slide 19: Healthcare Reform is Focused on the Comprehensive Cost of Care
Healthcare Reform is Focused on the Comprehensive Cost of Care Upfront Future Costs Cost vs. and Outcomes Cost of Hospital Readmissions Cost of Drugs Complications and Infections SmartVest® Lower Quality of Life SmartVest® can Lower the Comprehensive Cost of Healthcare and Improve Outcomes Investor
Slide 20: Unique Investment Opportunity
Unique Investment Opportunity » Large, expanding market supported by industry tailwinds » Clinically proven therapy » Well established reimbursement code with broad payer coverage » Consistent double-digit organic revenue growth » High gross margins, robust operating cash flow and increased operatin
Slide 21: Why Invest?
Why Invest? Attractive Valuation and Operating Metrics RUS Metric ELMD ME Sales Growth (FQ4 YOY) 20.8% > 3.7% EV / Revenue (LTM) 1.8x > 4.6x Gross Margin (LTM) 76.0% > 54.7% Operating Margin (LTM) 8.3% > (9.1%) Investor Presentation | 21
Slide 22: Jim Cunniff, President & CEO; Mike Cavanaugh
Jim Cunniff, President & CEO Mike Cavanaugh (952) 758-9299 (617) 877-8641 jcunniff@Electromed.com mike.cavanaugh@westwicke.com Brad Nagel, CFO Callie Conway (952) 758-9299 (332) 242-4336 bnagel@Electromed.com Callie.Conway@Westwicke.com Investor Presentation | 22
Slide 23: Appendix
APPENDIX Investor Presentation | 23
Slide 24: Financial Highlights and Balance Sheet
Financial Highlights and Balance Sheet Financial Summary Fiscal Year Ended 3 Months Ended (in $ millions, except shares amounts) June 30, 2021 June 30, 2022 June 30, 2023 June 30, 2022 June 30, 2023 Revenues 35.8 41.7 48.1 11.3 13.6 Gross Profit 27.3 31.4 36.5 8.1 10.5 Gross margin 76% 75% 76% 72% 7
Slide 25: Senior Leadership
Senior Leadership Jim Cunniff – President & Chief Executive Officer • CEO of Electromed since July 2023 • 30+ years of executive leadership in MedTech and the broader healthcare industry • Track record of consistently growing revenue through innovative go-to market strategies • Former President, CEO