Electromed : Investor Presentation

Electromed, Inc. Investor Presentation

May 2024

NYSE American: ELMD

INNOVATION LEADER IN AIRWAY CLEARANCE TECHNOLOGIES

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," "intend," "may," "plan," "potential," "should," "will," and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for the Company include, but are not limited to the competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio; the risks associated with expansion into international markets, as well as other factors we may describe from time to time in the Company's reports filed with the Securities and Exchange Commission (including the Company's most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on "forward-looking statements," as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.

Investor Presentation

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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.

Key Stats:

Headquarters:	Ticker:	Established:
New Prague, MN	ELMD	1992

Annual Revenue:	Market Cap:	Share Count:
$53.5M	$139M	8.7M

174	Manufacturing	HFCWO Market
Employees	in Minnesota	Focus

As of and for trailing 12 months ended 3/31/2024

Investor Presentation

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Electromed Overview

» 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

Net Revenue ($M)1

$48.1

$41.7

$35.8

$31.3 $32.5

$28.3

FY'18 FY'19 FY'20 FY'21 FY'22 FY'23

Net Income ($M)1

$4.2 *

»	Attractive direct-to-patient and provider model
»	Strong financial profile with attractive
	historical gross margins and profitability, well
	capitalized balance sheet

$2.7

$1.8 $2.0

$3.2

$2.4 $2.3

1 Financials under ASC 606

FY'18 FY'19 FY'20 FY'21 FY'22 FY'23

• FY20 reported net income of $4.2M included $1.5M of one-time benefits and cost savings related to the COVID health emergency. See appendix for non-GAAP reconciliation

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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 infection
• Mean prevalence of bronchiectasis in patients with COPD is 54%¹

Disease

Misdiagnosed

Disease

Underdiagnosed

HFCWO

Under-prescribed

1Chalmers J. and Sethi S. Raising awareness of bronchiectasis in primary care: overview of diagnosis and management strategies in adults. NPJ Prim Care Respir Med. 2017;27:18

Investor Presentation

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US Market

Large, Growing and Underpenetrated Market

Estimated Net	~127K
HFCWO ADOPTED1
Bronchiectasis	~824K
prevalence, DIAGNOSED1
	U.S. BE Diagnosed1

4.1 million

Estimated bronchiectasisU.S. Undiagnosed2 prevalence,

UNDIAGNOSED2

Estimated HFCWO

bronchiectasis penetration,

treated population1

Bronchiectasis HFCWO

penetration ~15%1

Diagnosed BE population

growing at ~12%

annually1

1Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database

2Internal company estimates derived from GUIDEHOUSE 2023 literature review and 2023 CDC NHANES data

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How is Bronchiectasis Treated?

Benefits of HFCWO Therapy

Investor Presentation

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SmartVest Clearway®

NewestHFCWO 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

SmartVest® has a well-established reimbursement code from CMS - E0483;

Electromed has over 275M contracted lives in the US

Investor Presentation

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SmartNotesTM Patient Progress Report

Providing 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 Therapists stay connected with patients and support their therapy utilization.
• Outcomes Management: Easy-to-readreport provides physicians with a comprehensive view of disease progression and therapy impact.

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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, all-cause hospitalizations, pneumonia and pulmonary hospitalizations.

DeKoven (2022)

	Therapy with
	SmartVest®
	demonstrated an
Therapy with	improvement in
symptom scores and
SmartVest®
quality of life.
significantly decreased
Chakravorty (2011)
exacerbations requiring
hospitalization, antibiotic
use, and stabilizes lung
function.
Powner (2018)

Investor Presentation

59%

Fewer hospitalizations

Exacerbations requiring hospitalizations reduced with SmartVest®.

Sievert (2016)

75%

Reduction in ER visits

Longitudinal outcome-based

study showed ER visits

significantly reduce with SmartVest®.

Sievert (2018)

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