#1Electromed, Inc. Investor Presentation February 2024 NYSE American: ELMD INNOVATION LEADER IN AIRWAY CLEARANCE TECHNOLOGIES A SITIONMA smartvest AIRWAY CLEARANCE SYSTEM#2Forward 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. smartvest Investor Presentation ELECTROMED, INC. 12 AIRWAY CLEARANCE SYSTEM#3Who We Are ELECTROMED, INC. 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: New Prague, MN Ticker: Established: ELMD 1992 Ο ο Annual Revenue: $48.1M Market Cap: $90M Share Count: Smartvest 8.6M smartvest AIRWAY CLEARANCE SYSTEM #170 Employees As of 10/31/2023 Investor Presentation Manufacturing in Minnesota HFCWO Market Focus ELECTROMED, INC. 13#4Electromed Overview » Growing and profitable medical technology company >>> A leader in the large and expanding airway clearance market » SmartVest® High Frequency Chest Wall Oscillation ("HFCWO") technology supported by clinical outcomes data with strong reimbursement » Attractive direct-to-patient and provider model » Strong financial profile with attractive historical gross margins and profitability, well capitalized balance sheet Net Revenue ($M)¹ $48.1 $41.7 $35.8 $32.5 $31.3 $28.3 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Net Income ($M)1 $4.2 $3.2 $2.4 $2.3 $2.0 $1.8 1 Financials under ASC 606 smartvest® AIRWAY CLEARANCE SYSTEM Investor Presentation FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 ELECTROMED, INC. 14#5What 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 Disease Misdiagnosed >>> Mean prevalence of bronchiectasis in patients with COPD is 54%¹ Normal airways Normal airway Muscle Airway wall Airway with bronchiectasis Widened airway Lungs in cross-section Widened airways Mucus Scared and thickened airway wall 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 smartvest Investor Presentation ELECTROMED, INC. 15 AIRWAY CLEARANCE SYSTEM#6→ US Market Large, Growing and Underpenetrated Market Estimated Net Bronchiectasis prevalence, DIAGNOSED¹ ~127K HFCWO ADOPTED¹ ~824K U.S. BE Diagnosed¹ Estimated HFCWO bronchiectasis penetration, treated population¹ Estimated bronchiectasis prevalence, UNDIAGNOSED² 4.1 million U.S. Undiagnosed² ¹Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database 2Internal company estimates derived from GUIDEHOUSE 2023 literature review and 2023 CDC NHANES data smartvest AIRWAY CLEARANCE SYSTEM Bronchiectasis HFCWO penetration ~15%¹ Diagnosed BE population growing at ~12% annually¹ ELECTROMED, INC. 16#7→ How is Bronchiectasis Treated? Benefits of HFCWO Therapy On Average, How Often How Does SmartVestⓇ HFCWO Therapy Work? Is HFCWO Therapy Performed? Air-Pulse Technology A generator delivers repeating pulses of air though a single hose to an inflated wearable vest. 2x per day statvest Gentle Squeeze & Release Each pulse gently squeezes and releases the chest to thin and loosen mucus in the lungs. Airway Clearance Mucus is propelled upward toward major airways where it can be coughed out more easily. smartvest AIRWAY CLEARANCE SYSTEM 30 minutes per session 7 days per week Investor Presentation ELECTROMED, INC. 17#8History of Innovation Introduced Portable HFCWO Device Wrap Introduced Programmable HFCWO Device Introduced Reversible Wrap Garment Introduced SmartVestⓇ Colors Introduced SmartVest SQLⓇ • 2000 2001 2003 2007 2008 2010 Introduced Machine Washable Vest Garment Introduced Multi- Positional HFCWO Device 2013 smortvest smartvest WILLIAM JOHNSON 87 O 10 11 a DAARD Commenced Development of Wireless Connectivity Reporting Solution 2016 2017 2022 Introduced Expanded SmartVestⓇ Garment and SQL® Generator Colors Introduced Touch Screen User Interface HFCWO Device ClearwayⓇ - smartvest clearway smartvest Investor Presentation ELECTROMED, INC. 18 AIRWAY CLEARANCE SYSTEM#9SmartVest 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 growth - SmartVestⓇ has a well-established reimbursement code from CMS – E0483; Electromed has over 275M contracted lives in the US smartvest AIRWAY CLEARANCE SYSTEM Investor Presentation ELECTROMED, INC. 19#10SmartNotes™ 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-read report provides physicians with a comprehensive view of disease progression and therapy impact. Name Clarence COPD Risk C SmartNotes Patient Progress Report Primary DX Bronchiectasis (Non CF) Member ID 123456 Patient Motivational Goal Be able to go shopping Days in Program 195 PHYSICIAN INFO DOB 01/02/1850 SmartNotes Onboard 12/02/2022 HFCWO Setup 12/02/2022 Last Encounter 06/14/2023 Primary Care Physician Sam Smith Pulmonologist Peter Moss Next Phys Follow Up Visit 10/01/2023 EQUIPMENT INFORMATION smartvest Age 73 SmartVest Connect Enabled Yes Rep John Doe [XX-1] Pt Reported Feeling Better I feel better than the last check in MEDICATION BEST PRACTICES Both Rescue & Maint Med Patient has both a SABA/Rescue and some combination of Long Acting LABA, LAMA, ICS Increase in Rescue inhaler use No Currently on Antibiotics Yes HFCWO Manufacturer Electromed SmartVest HFCWO Therapy Settings Program 1, Program 2 HFCWO Equipment Working Yes HFCWO Current Total Hours 2 HFCWO REPORTED USAGE Avg Sessions/Day 2 Experienced HFCWO Equipment Error Codes No Garment fit Yes Oxygen as Prescribed Yes Oxygen Rx on Order: Rx Hours/day 24hrs continuous Much more Days since 165 HFCWO COMPETENCIES Able to return the equipment instructions Yes Able to complete bronchodilator therapy Yes Able to complete antibiotic therapy Yes Able to complete device therapy Yes Able to perform clearance techniques Yes HOSPITAL ADMISSIONS PRIOR TO ONBOARDING Hospital Admissions 2 Reason for Visit Respiratory Last Admission date 11/28/2022 Resp Infections Prior to Onboarding 4 COPD ASSESSMENT TEST TOTAL SCORE BY DATE Avg Minutes/Day 30 HFCWO OUTCOMES (POST THERAPY) Sputum production post SmartVest Reduced effort to mobilize secretions Yes Has shortness of breath improved Yes Any side effects with therapy No Explain side effect if present N/A POST ONBOARDED HOSPITALIZATIONS Hospital Admissions 1 Reason for Visit Cardiac Date of last admission 01/02/2023 Resp Infections Since Onboarded N/A CAT SCORE BY QUESTION last Admit smartvest AIRWAY CLEARANCE SYSTEM CAT Change 40 from Initial 50 -22 20 2012-202 2020-129 2012-12-12 2023-01-02 2003-08-07 2023-45-1 2023-0614 01/02/2023 3 2 2 06/14/2023 1 1 1 1 1 03/01/2023 2 1 1 1 8 22 1 1 1 1 1 11 02/02/2023 3 2 2 11 11 12 2 14 12 2 14 12/12/2022 4 3 2 2 2 2 2 2 19 ELECTROMED, INC. | 10#11Clinical 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) 59% Fewer hospitalizations Exacerbations requiring hospitalizations reduced with SmartVestⓇ. Sievert (2016) Therapy with SmartVestⓇ significantly decreased exacerbations requiring i hospitalization, antibiotic I I use, and stabilizes lung function. Powner (2018) Therapy with SmartVestⓇ demonstrated an improvement in symptom scores and quality of life. Chakravorty (2011) smartvest AIRWAY CLEARANCE SYSTEM Investor Presentation 75% Reduction in ER visits Longitudinal outcome-based study showed ER visits significantly reduce with SmartVestⓇ. Sievert (2018) ELECTROMED, INC. | 11#12Markets We Serve Net Revenue Breakdown, Fiscal Year 2023 % of Net Revenue: Sales Points: Homecare 95% Direct to physicians adult pulmonology clinics cystic fibrosis centers neuromuscular clinics HME distributors Hospitals International 1% Distributors 4% Individual hospitals; member hospitals of group purchasing organizations (GPOs) Revenue Model: Third-party reimbursement (Medicare, Medicaid, Commercial) Contracted price with payments made directly from the distributor Payments made directly from the institution for generator sales - capital purchase Single patient use garments - recurring sales Contracted price with payments made directly from the distributor smartvest AIRWAY CLEARANCE SYSTEM Investor Presentation ELECTROMED, INC. | 12#13Direct-to-Patient Model Drives Attractive Margin Profile Traditional Medical Manufacturer $ DME $ Patient Equipment Channel VS. Direct-to-Patient Distribution (Electromed) Electromed $$ Patient smartvest AIRWAY CLEARANCE SYSTEM ELMD expects gross margins in the mid-70s and improving with the SmartVestⓇ ClearwayⓇ Investor Presentation ELECTROMED, INC. | 13#14Net Revenue Breakdown - $48.1M (FY'23) By Setting Homecare By Payer Homecare By Referral Volume 95% 1% 4% 44% 2% 10% 10% 54% 14% Home Care¹ Hospitals Medicare Commercial / Other² International Medicaid Includes $1.5 million from home care distributor revenue 2 Includes Managed Medicare and Managed Medicaid smartvest AIRWAY CLEARANCE SYSTEM Investor Presentation 29 والح 64% Bronchiectasis Cystic Fibrosis Neuromuscular COPD/COPD Related Other ELECTROMED, INC. | 14#15· • • 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 body of bronchiectasis clinical evidence to increase physician adoption of the SmartVestⓇ System for patients Promote the best-in-class SmartVest ClearwayⓇ device smartvest AIRWAY CLEARANCE SYSTEM ELECTROMED, INC. | 15#16Long-Term Objectives Mid-teens revenue growth Increase market share; deeper penetration of current SmartVestⓇ prescribers smartvest AIRWAY CLEARANCE SYSTEM Operating margin improvement • Operating leverage as revenue increases We are committed to delivering long-term profitable growth ELECTROMED, INC. | 16#17Why Invest? HFCWO Industry Drivers Aging population Higher incidence of chronic lung diseases 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) smartvest Investor Presentation ELECTROMED, INC. | 17 AIRWAY CLEARANCE SYSTEM#18Unique 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 flow and increased operating leverage Attractive valuation at 1.8x EV/Revenue smartvest Investor Presentation ELECTROMED, INC. | 18 AIRWAY CLEARANCE SYSTEM#19. Mgmt. Incentives Aligned w/Investors CEO incentive reward based on increasing total shareholder return. Management's incentive compensation focused solely on delivering financial results. smartvest Investor Presentation ELECTROMED, INC. | 19 AIRWAY CLEARANCE SYSTEM#20Why Invest? Attractive Valuation and Operating Metrics (FY2023 Results) RUS Metric ELMD ME Sales Growth 15.4% 3.7% EV / Revenue 1.8x 4.6x Gross Margin 76.0% 54.7% Operating Margin 8.3% (9.1%) smartvest Investor Presentation ELECTROMED, INC. | 20 AIRWAY CLEARANCE SYSTEM#21ELECTROMED, INC. Jim Cunniff, President & CEO (952) 758-9299 [email protected] Brad Nagel, CFO (952) 758-9299 [email protected] ICR WESTWICKE Mike Cavanaugh (617) 877-8641 [email protected] Callie Conway (332) 242-4336 [email protected] smartvest Investor Presentation ELECTROMED, INC. | 21 AIRWAY CLEARANCE SYSTEM#22smartvest AIRWAY CLEARANCE SYSTEM APPENDIX Investor Presentation ELECTROMED, INC. | 22#23Fiscal Year Ended | June 30, 2021 June 30, 2022 June 30, 2023 35.8 41.7 Financial Highlights and Balance Sheet Financial Summary (in $ millions, except shares amounts) Revenues 3 Months Ended Dec 31, 2022 Dec 31, 2023 48.1 11.7 13.7 Gross Profit 27.3 31.4 36.5 8.7 10.5 Gross margin 76% 75% 76% 74% 77% Operating income 3.1 3.0 4.0 1.3 2.3 Operating margin 9% 7% 8% 11% 17% Net income 2.4 2.3 3.2 1.0 1.7 Diluted EPS $0.27 $0.26 $0.36 $0.11 $0.19 Diluted shares Cash provided by operations 8,911,842 $3.1 8,768,703 8,700,833 ($0.7) $1.3 8,684,352 1.1 8,802,780 1.8 Balance Sheet (in $ millions) Dec 31, 2023 Cash 10.4 Cash Provided by Operations (in millions) Current assets 39.3 Total assets 47.0 $4.2 Current liabilities $3.1 6.6 Other long-term liabilities 0.05 $1.3 Total debt 0.0 ($0.7) Total shareholders' equity 40.3 FY'20 FY'21 FY'22 FY'23 smartvest AIRWAY CLEARANCE SYSTEM Investor Presentation ELECTROMED, INC. | 23#24Senior 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, and Board Director of Provista as well as Leiters Health Former Senior Vice President of Americas for Kinetic Concepts, Inc. Former President, Stryker Corporation for the following divisions: Medical, Asia/Pacific and Emerging Markets 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 at Medtronic smartvest AIRWAY CLEARANCE SYSTEM Kristine Owata - Vice President of Reimbursement & Payer Relations VP of Reimbursement & Payer Relations at Electromed since October 2020 15+ years of diverse leadership experience in people management, client experience and process improvement Former president and director of Intelligere, Inc., and former owner of W4P Revenue Cycle Solutions, where she implemented revenue cycle solutions for healthcare clients Diane Kaufman - Vice President of Human Resources VP of Human Resources at Electromed since July 2021 30+ years of experience leading global human resource functions aligning them with global business strategy and a champion of culture transformation Former Sr. VP of Global Human Resources at Ergotron resulting in 65% employee referral rate, 100% candidate acceptance and hiring in 30 days, and reduced turnover from 23% to 3% Amy Yanta - Vice President of Regulatory Affairs, Quality Assurance & Compliance VP of Regulatory, Quality & Compliance since September 2023 15+ years of experience in the MedTech industry specializing in Regulatory Affairs and Quality Assurance Former RAQA leader at IMRIS, and former regulatory affair roles at Boston Scientific and Surmodics. 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