Slide 1: Electromed, Inc. Investor Presentation
| 1 Investor Presentation Electromed, Inc. Investor Presentation August 27, 2024 NYSE American: ELMD Innovation Leader in Airway Clearance Technologies
Slide 2: Forward Looking Statements
| 2 Investor Presentation 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,” “belie
Slide 3: Electromed – Who We Are
| 3 Investor Presentation Electromed – Who We Are Electromed, Inc. is a growing medical device company focused on airway management to help people around the world breathe better, stay healthier, and lead active and fulfilling lives. As of and for 12 months ended 6/30/2024 Key Stats : Headquarters:
Slide 4: Electromed Highlights
| 4 Investor Presentation Electromed Highlights » Growing and profitable medical technology company » A leader in the large and expanding airway clearance market » The SmartVest ® Airway Clearance System’s H igh F requency C hest W all Oscillation (“HFCWO”) technology supported by clinical outcomes
Slide 5: What is Bronchiectasis (BE)?
| 5 Investor Presentation What is Bronchiectasis (BE)? » Irreversible lung condition characterized by abnormal widening of one or more of the bronchi (airways) » Repeated episodes of pulmonary inflammation and infection leads to mucus accumulating in the airways » Mean prevalence of bronchiectasis i
Slide 6: U.S. Market: Large, Growing, Underpenetrated
| 6 Investor Presentation U.S. Market: Large, Growing, Underpenetrated 1. Derived from GUIDEHOUSE 2023 NASM claims database 2. Derived from GUIDEHOUSE 2023 literature review and 2023 CDC NHANES data Bronchiectasis HFCWO penetration ~15% 1 Diagnosed BE population growing at ~12% annually 1 Estimated
Slide 7: How is Bronchiectasis Treated? Antibiotics, Anti-Inflammatories, Airway Clearance
| 7 Investor Presentation How is Bronchiectasis Treated? Antibiotics, Anti - Inflammatories, Airway Clearance
Slide 8: How is Bronchiectasis Treated? HFCWO Therapy – Mimics Manual CPT
| 8 Investor Presentation How is Bronchiectasis Treated? HFCWO Therapy – Mimics Manual CPT
Slide 9: SmartVest Clearway: Newest HFCWO Device on the Market
| 9 Investor Presentation Smaller and lighter Intuitive user interface for better patient adherence More portable and easier for travel SmartVest Clearway ® Newest HFCWO Device on the Market An Enhanced Patient Experience SmartVest ® has a well - established reimbursement code from CMS – E0483; Elec
Slide 10: SmartNotes Patient Progress Report
| 10 Investor Presentation SmartNotes™ Patient Progress Report SmartNotes combine patient Quality of Life and Therapy Utilization data to provide physicians with extended views into disease management » TeleRespiratory Services : A team of Respiratory Therapists stay connected with patients and supp
Slide 11: Clinical Evidence
| 11 Investor Presentation Clinical Evidence Electromed has Published Studies Showing Effectiveness of HFCWO to Treat Bronchiectasis 1.Sievert CE, et al 2016. Using High Frequency Chest Wall Oscillation in a Bronchiectasis Patient Population: An Outcomes - Based Case Review. Respiratory Therapy, 11(
Slide 12: Direct-to-Patient Model Drives Attractive Margin Profile
| 12 Investor Presentation Direct - to - Patient Model Drives Attractive Margin Profile Manufacturer DME Patient $ $ vs. Electromed Patient $ Traditional Medical Equipment Channel Direct - to - Patient Distribution (Electromed) ELMD expects gross margins in the mid - 70s and improving with the Smar
Slide 13: Net Revenue Breakdown - $54.7M (TTM ended 6/30/2024)
| 13 Investor Presentation Net Revenue Breakdown - $54.7M (TTM ended 6/30/2024) 1% [PE RCE NTA GE] 94% By Setting Homecare By Payer Homecare By Referral Volume 64% 2% 14% 10% 10% 54% 44% 2% Home Care 1 Hospitals International Medicare Commercial/Other 2 Medicaid Bronchiectasis Cystic Fibrosis Neurom
Slide 14: Growth Strategy
| 14 Investor Presentation Growth Strategy How will Electromed Increase Market Share? Continued sales force expansion along with complementary infrastructure investments Increase brand awareness and revenue with direct - to - consumer and physician marketing Market development to improve diagnosis r
Slide 15: Long-Term Objectives
| 15 Investor Presentation Long - Term Objectives Electromed is committed to delivering long - term profitable growth Double - digit Revenue Growth Operating Margin Improvement Increase market share Deeper penetration of current SmartVest prescribers Operating leverage as revenue increases
Slide 16: Why Invest?
| 16 Investor Presentation Why Invest? Large, expanding chronic lung diseases market Clinically proven technology Broad payor coverage Consistent double - digit organic revenue growth High gross margins , robust cash flow and expanding operating leverage
Slide 17: Management Incentives Aligned w/Investors
| 17 Investor Presentation Management Incentives Aligned w/Investors CEO Incentive Management’s Incentive Compensation Reward based on increasing total shareholder return . Focused solely on delivering financial results .
Slide 18: Attractive Valuation
| 18 Investor Presentation Attractive Valuation (TTM and as of 6/30/2024 Results) Metric ELMD RUS ME Sales Growth 13.8% > 2.3% EV / Revenue Gross Margin 2.4x 76.3% > > 3.5x 53.0% Operating Margin 12.0% > (3.7%)
Slide 19: | Mike Cavanaugh ( 617) - 8641 m ike.cavanaugh@westwicke.com Maren Czura (332) 242 -
| 19 Investor Presentation Mike Cavanaugh ( 617) 877 - 8641 m ike.cavanaugh@westwicke.com Maren Czura (332) 242 - 4365 maren.czura@westwicke.com Jim Cunniff , President & CEO (952) 758 - 9299 jcunniff @Electromed.com Brad Nagel, CFO (952) 758 - 9299 bnagel@Electromed.com
Slide 20: Appendix
| 20 Investor Presentation APPENDIX
Slide 21: Financial Highlights and Balance Sheet
| 21 Investor Presentation Financial Highlights and Balance Sheet Financial Summary Three months ended Year Ended ( in $ millions, except shares amounts) June 30, 2023 (unaudited) June 30, 2024 (unaudited) June 30, 2023 June 30, 2024 Revenues $13.6 $14.8 $48.1 $54.7 Gross Profit $10.5 $11.3 $36.5 $4