Electromed : Investor Presentation

Electromed, Inc. Investor Presentation

August 2023

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 U.S. 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 duration, extent and severity of the Covid-19 pandemic, including its effects on our business, operations and employees as well as its impact on our customers and distribution channels and on economies and markets more generally; 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

| 2

Electromed Overview

• Growing and profitable medical technology company
• 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
• Demonstrated above-market growth and taking share from competitors
• Attractive direct to patient and provider model
• Strong financial profile with attractive gross margins and profitability, well capitalized balance sheet

• FY'15 to FY'17 financials under ASC 605; FY'18 to FY'22 under ASC 606

Investor Presentation

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

$3.2

$2.4 $2.3

$1.8 $2.0

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

| 3

The Bronchiectasis Market Opportunity

• 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

| 4

Large, Underpenetrated U.S. Market

ESTIMATED HFCWO

BRONCHIECTASIS PENETRATION,

TREATED POPULATION3

ESTIMATED BRONCHIECTASIS

PREVALENCE, DIAGNOSED1, 3

ESTIMATED BRONCHIECTASIS

PREVALENCE, UNDIAGNOSED1,4Bronchiectasis HFCWO

penetration ~20%³

HFCWO market growing

at mid-single digits.

1Bafadhel M, et al. The role of CT scanning in multidimensional phenotyping of COPD. Chest. 2011;140:634-42.

2Chalmers 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. 3Internal company estimates derived from IQVIA 2018 PharMetrics Plus Database

4Weycker D, Hansen G, Seifer F. Prevalence and incidence of noncystic fibrosis bronchiectasis among US adults in 2013. Chronic Respiratory Disease. 2017; 14(4):377-384.

Investor Presentation

| 5

CONFIDENTIAL - FOR INTERNAL USE ONLY