Electromed, Inc. · AMEX:ELMD
Electromed — Investor Presentation (November 2023)
24 slides from Electromed's investor presentation, Nov 15, 2023
Slide 1: Electromed, Inc. Investor Presentation November 2023
Electromed, Inc. Investor Presentation November 2023 NYSE American: ELMDINNOVATION 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: Key Stats
Key Stats: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.Headquarters: New Prague, MNAnnual Revenue: $48.1MTicker: ELMDMarket Cap: $90MEstablished: 1992Share Count:
Slide 4: Electromed Overview
Electromed Overview Net Revenue ($M)1 $48.1 » » » Growing and profitable medical technology company A 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 » Attrac
Slide 5: Bronchiectasis: an irreversible lung condition
» 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 infection » Mean prevalence of bronchiectasis i
Slide 6: Large, Growing and Underpenetrated Market
Large, Growing and Underpenetrated MarketEstimated Net Bronchiectasis prevalence, DIAGNOSED1Estimated bronchiectasis prevalence, UNDIAGNOSED2Estimated HFCWO bronchiectasis penetration, treated population11Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database 2Internal company
Slide 7: Benefits of HFCWO Therapy
Benefits of HFCWO TherapyInvestor Presentation | 7
Slide 8: Product introduction timeline
Introduced Portable HFCWO DeviceIntroduced Programmable HFCWO DeviceIntroduced Reversible Wrap GarmentIntroduced SmartVest® ColorsIntroduced SmartVest SQL®Commenced Development of Wireless Connectivity Reporting Solution2000200120032007200820102013 201620172022Introduced Machine Washable Vest Garmen
Slide 9: SmartVest Clearway: Only New HFCWO Device on the Market
SmartVest Clearway® Only New HFCWO Device on the Market An enhanced patient experience! » Smaller, lighter and intuitive user interface for better patient adherence » Patient remote monitoring enabled » More portable and easier for travel » Expect to contribute to both top line and gross margin grow
Slide 10: Providing Patient Outcomes and Treatment Progress to Physicians
Providing Patient Outcomes and Treatment Progress to PhysiciansSmartNotes 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 suppo
Slide 11: Published Studies Showing Effectiveness of HFCWO to Treat Bronchiectasis
Electromed has Published Studies Showing Effectiveness of HFCWO to Treat BronchiectasisTherapy with HFCWO demonstrated key health outcomes improved in post- compared to pre-index period: cough, all-cause hospitalizations, pneumonia and pulmonary hospitalizations. DeKoven (2022)Therapy with SmartVest
Slide 12: Net Revenue Breakdown, Fiscal Year 2023
Net Revenue Breakdown, Fiscal Year 2023% of Net Revenue:Sales Points:Revenue Model:Investor Presentation| 12
Slide 13: Drives Attractive Margin Profile
Drives Attractive Margin ProfileInvestor Presentation| 13
Slide 14: Revenue by Setting, Payer and Referral
By SettingHomecare By PayerHomecare By Referral VolumeHome Care¹ Hospitals InternationalMedicareCommercial / Other2MedicaidBronchiectasis Cystic Fibrosis Neuromuscular1Includes $1.5 million from home care distributor revenue2 Includes Managed Medicare and Managed MedicaidInvestor PresentationCOPD/CO
Slide 15: How Will Electromed Increase Market Share?
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 body of bronchie
Slide 16: Growth and operating margin targets
Mid-teens revenue growth • Increase market share; deeper penetration of current SmartVest® prescribersOperating margin improvement • Operating leverage as revenue increases| 16
Slide 17: HFCWO Industry Drivers
HFCWO Industry DriversAging populationHigher incidence of chronic lung diseasesGrowing physician awareness of diseases such as bronchiectasisThe Affordable Care Act penalizes for readmissionHealthcare reform moving to fee-for- outcomesTreatment moving to lower cost settings (homecare)Investor Presen
Slide 18: Unique Investment Opportunity
Unique Investment Opportunity ? 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 margins, robust operating cash f
Slide 19: Mgmt. Incentives Aligned w/Investors
Mgmt. Incentives Aligned w/Investors ? CEO incentive reward based on increasing total shareholder return. ? Management?s incentive compensation focused solely on delivering financial results. Investor Presentation | 19
Slide 20: Why Invest? Attractive Valuation and Operating Metrics
Why Invest? Attractive Valuation and Operating Metrics (FY2023 Results) RUS ME Metric ELMD Sales Growth 15.4% > 3.7% EV / Revenue 1.8x > 4.6x Gross Margin 76.0% > 54.7% Operating Margin 8.3% > (9.1%) Investor Presentation | 20
Slide 21: Contact details
Jim Cunniff, President & CEO (952) 758-9299 jcunniff@Electromed.comBrad Nagel, CFO (952) 758-9299 bnagel@Electromed.comMike Cavanaugh (617) 877-8641 mike.cavanaugh@westwicke.comCallie Conway (332) 242-4336 Callie.Conway@Westwicke.comInvestor Presentation| 21
Slide 22: Appendix
APPENDIXInvestor Presentation | 22
Slide 23: Financial Summary
Financial Summary (in $ millions, except shares amounts) Fiscal Year EndedJune 30, 2021 June 30, 2022 June 30, 2023 3 MonthSept 30, 2022 s EndedSept 30, 2023 Revenues 35.8 41.7 48.1 10.7 12.3 Gross Profit 27.3 31.4 36.5 8.3 9.5 Gross margin 76% 75% 76% 78% 77% Operating income 3.1 3.0 4.0 0.0 0.1 Op
Slide 24: Management biographies
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, and Board Direct