Slide 1: Electromed, Inc. Investor Presentation May 2024
Electromed, Inc. Investor Presentation May 2024 NYSE American: ELMD INNOVATION LEADER IN AIRWAY CLEARANCE TECHNOLOGIES
Slide 2: Forward Looking Statements
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,” “believe,”
Slide 3: 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. Who We Are As of and for trailing 12 months ended 3/31/2024 Key Stats: Headquarters: New Prague, MN Ticker: ELMD Est
Slide 4: Electromed Overview
| 4 » Growing and profitable medical technology company » A leader in the large and expanding airway clearance market » SmartVest ® H igh F requency C hest W all O scillation (“HFCWO”) technology supported by clinical outcomes data with strong reimbursement » Attractive direct - to - patient and pro
Slide 5: What is Bronchiectasis?
Investor Presentation 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 infection » Damaged airways allow excess mucus to accumulate, increasing risk of i
Slide 6: US Market Large, Growing and Underpenetrated
Bronchiectasis HFCWO penetration ~15% 1 Diagnosed BE population growing at ~12% annually 1 Estimated Net Bronchiectasis prevalence, DIAGNOSED 1 Estimated bronchiectasis prevalence, UNDIAGNOSED 2 Estimated HFCWO bronchiectasis penetration, treated population 1 | 6 1 Internal company estimates derived
Slide 7: How is Bronchiectasis Treated? Benefits of HFCWO Therapy
Investor Presentation | 7 How is Bronchiectasis Treated? Benefits of HFCWO Therapy
Slide 8: SmartVest Clearway: Newest HFCWO Device on the Market
Investor Presentation An enhanced patient experience! » Smaller, lighter and intuitive user interface for better patient adherence » Patient remote monitoring enabled » More portable and easier for travel | 8 SmartVest Clearway® Newest HFCWO Device on the Market SmartVest ® has a well - established
Slide 9: SmartNotes Patient Progress Report
SmartNotes TM Patient Progress Report P roviding Patient Outcomes and Treatment Progress to Physicians 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 Therapis
Slide 10: Clinical Evidence
Investor Presentation Therapy with SmartVest® significantly decreased exacerbations requiring hospitalization, antibiotic use, and stabilizes lung function. Powner (2018) Therapy with HFCWO demonstrated key health outcomes improved in post - compared to pre - index period: cough, all - cause hospita
Slide 11: Markets We Serve
Investor Presentation Homecare Hospitals International 95% Direct to physicians adult pulmonology clinics cystic fibrosis centers neuromuscular clinics HME distributors Third - party reimbursement (Medicare, Medicaid, Commercial) Contracted price with payments made directly from the distributor 4% I
Slide 12: Direct-to-Patient Model Drives Attractive Margin Profile
Investor Presentation ELMD expects gross margins in the mid - 70s and improving with the SmartVest® Clearway® Traditional Medical Equipment Channel D irect - to - Patient Distribution (Electromed) vs. Manufacturer DME Patient $ $ Electromed Patient $ | 12 Direct - to - Patient Model Drives Attracti
Slide 13: Net Revenue Breakdown - $48.1M (FY'23)
Investor Presentation 1% 4% 95% Medicare Medicaid Homecare By Payer Home Care¹ Hospitals International By Setting Commercial / Other 2 Bronchiectasis Cystic Fibrosis Homecare By Referral Volume Neuromuscular Other 2 Includes Managed Medicare and Managed Medicaid 1 Includes $1.5 million from home car
Slide 14: Growth Strategy
| 14 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 p
Slide 15: HFCWO Industry Drivers
Higher incidence of chronic lung diseases Aging population Growing physician awareness of diseases such as bronchiectasis The Affordable Care Act penalizes for readmission Healthcare reform moving to fee - for - outcomes Treatment moving to lower cost settings (homecare) HFCWO Industry Drivers | 15
Slide 16: Unique Investment Opportunity
Investor Presentation Unique Investment Opportunity | 16 • Large, expanding bronchiectasis market supported by industry tailwinds • Clinically proven therapy • Well established reimbursement code with broad payer coverage • Consistent double - digit organic revenue growth • History of high gross mar
Slide 17: Management Incentives Aligned with Investors
Investor Presentation Mgmt. Incentives Aligned w/Investors • CEO incentive reward based on increasing total shareholder return . • Management’s incentive compensation focused solely on delivering financial results. | 17
Slide 18: Attractive Valuation and Operating Metrics
Metric ELMD RUS ME Sales Growth 17.0% > 3.7% EV / Revenue Gross Margin 2.6x 76.4% > > 4.6x 54.7% Operating Margin 10.7% > (9.1%) | 18 Why Invest? Attractive Valuation and Operating Metrics (TTM ended 3/31/2024 Results)
Slide 19: Mike Cavanaugh ( 617) - 8641 m ike.cavanaugh@westwicke.com Callie Conway (332) 242 - 4336
Investor Presentation Mike Cavanaugh ( 617) 877 - 8641 m ike.cavanaugh@westwicke.com Callie Conway (332) 242 - 4336 Callie.Conway@Westwicke.com Jim Cunniff , President & CEO (952) 758 - 9299 jcunniff @Electromed.com Brad Nagel, CFO (952) 758 - 9299 bnagel@Electromed.com | 19
Slide 20: Appendix
APPENDIX Investor Presentation | 20
Slide 21: 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 Mar 31, 2023 Mar 31, 2024 Revenues 35.8 41.7 48.1 12.1 13.9 Gross Profit 27.3 31.4 36.5 9.1 10.4 Gross margin 76% 75% 76% 75% 75% Operating income 3.1 3.0 4.0 1.2 1.8
Slide 22: Senior Leadership
Senior Leadership | 22 Brad Nagel – Chief Financial Officer • Chief Financial Officer at Electromed since November 2022 • 15+ years of financial leadership and strategic planning experience with Fortune 500 companies • Former Divisional Chief Financial Officer of Global Lung Health and Visualization
Slide 23: Non-GAAP Reconciliation
Non - GAAP Reconciliation | 23 Slide 4 GAAP Net Income 4,200,000$ Reconciling Items: Government Stimulus Income (900,000)$ Expense reductions from COVID-related furloughs and role eliminations (700,000)$ Expense reductions from COVID-related travel limitations and fewer headcount traveling (400,000)