Electromed (ELMD) investor relations material

Company overview and financials

• Focuses on airway clearance in the respiratory care space, with a 35-year history and public since 2010.

• Generates about $70 million in revenue and $12 million in operating income, with no debt and strong cash generation.

• Profitability and cash flow allow for organic investment and share repurchases; $10 million in buybacks last year and another $10 million authorized.

• Maintains high gross margins (in the 70s) due to a direct sales model and selective use of distributors.

Product and technology differentiation

• SmartVest provides 360-degree airway clearance for chronic, irreversible bronchiectasis, improving quality of life but not curing the disease.

• Features include a lightweight, Velcro-closure vest, single-hose patented design, and a user-friendly touchscreen interface.

• Offers a lifetime warranty after insurance obligations, reducing out-of-pocket costs for patients.

• Differentiates from competitors with comfort, ease of use, and high patient retention on the technology.

Market opportunity and strategy

• Addressable market includes 925,000 diagnosed bronchiectasis patients, but only 150,000 currently use HFCWO technology.

• Estimated $3 billion market opportunity, with 4.1 million potential undiagnosed patients overlapping with COPD.

• Sales strategy targets high-prescribing and high-diagnosing pulmonologists, with a goal of 61 sales reps this fiscal year.

• Market development includes direct-to-consumer outreach and leveraging partnerships with respiratory therapists.