Investor Overview

November 2020

NASDAQ:SMED

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Safe Harbor Statement

These slides contain certain forward-looking statements and information relating to theCompany and its subsidiaries that are based on the beliefs of the Company’s management aswell as assumptions made by and information currently available to the Company’smanagement. When used in these slides, the words “will,” “may,” “position,” “plan,” “potential,”“continue,” “anticipate,” “believe,” “expect,” “estimate,” “project” and “intend” and words orphrases of similar import, as they relate to the Company or its subsidiaries or Companymanagement, are intended to identify forward-looking statements. Such statements reflectknown and unknown risks, uncertainties and assumptions related to certain factors, includingwithout limitation, competitive factors, general economic conditions, customer relations,relationships with vendors, governmental regulation and supervision, seasonality, distributionnetworks, product introductions and acceptance, technological change, changes in industrypractices, onetime events and other factors described herein including the impact of thecoronavirus COVID-19 (“COVID-19”) pandemic on our operations and financial results. Basedupon changing conditions, should any one or more of these risks or uncertainties materialize, orshould any underlying assumptions prove incorrect, actual results may vary materially fromthose described herein as anticipated, believed, estimated, expected or intended.Consequently, no forward-looking statements can be guaranteed. When considering theseforward-looking statements, you should keep in mind the risk factors and other cautionarystatements in the Company’s Annual Report on Form 10-K. Actual results may vary materially.You are cautioned not to place undue reliance on any forward-looking statements. You shouldalso understand that it is not possible to predict or identify all such factors and as such shouldnot consider the preceding list or the risk factors to be a complete list of all potential risks anduncertainties. The Company does not intend to update these forward-looking statements.

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• COMPANY OVERVIEW

• MEDICAL WASTE

SOLUTIONS

• UNUSED MEDICATIONS

• FINANCIAL REVIEW

AGENDA

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4

A Leader In Medical Waste Solutions

Serving Two Billion Dollar Markets

Medical Waste for Small to Medium Sized Generators

10.6% 5-YEAR CAGR; STRONG BALANCE SHEET

72% of Revenue*

10% Revenue Growth*

18% of Revenue*

32% Revenue Growth*

• Full Year Ended 6.30.20; Medical Waste for Small and Medium Sized Generators

includes Mailback and Route Based

4

Unused Medications

MarketMarket

Size

Market

Growth

Rate

Market

Position

(U.S.)

Market

Penetration

Small-

Medium

Quantity

Medical

Waste

>$1B ~5.5% 2nd <4%

Unused

Medication >$1B ~4.2% 1st <1%

5

*

*Source: Kaiser Family Foundation Analysis of National Health Expenditure from Centers for Medicare & Medicaid

Services, Office of the Actuary, National Health Statistics Group (Accessed on December 13, 2017)

Well Positioned In Attractive Markets

6

Growing End Market Opportunity

Addressable Market Size

$1.0B*

$2.0B*

Founding of

Company

~3 Years Ago

Today

Comprehensive

Medical Waste:

Mailback

+

Pick-Up Service

(Company Owned)

+

Unused

Medication

Comprehensive

Medical Waste:

Mailback

+

Pick-Up Service

(Company Owned)Medical Waste:

Mailback

$0.25B - $0.5B*

*

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Improving Revenue Mix% of Total Revenue

Route-Based20%

Unused Medication

18%

Mailback52%

2020 Route-Based

1%

Unused Medication

6%

Mailback93%

2013

8

MEDICAL WASTE SOLUTION

Everything But The Hospital

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Serving All Small to Medium Quantity Generator Markets

* Professional includes dentists, veterinarians, clinics, physician groups, urgent care facilities, ambulatory surgical centers, labs, dialysis centers and other healthcare facilities.

Point-of-Care Shifting Towards Sharps’ Core Customers

Aging

Population

Traditional

Healthcare Setting

Professional

Market*

Retail

Pharmacies

Home

Health Care

Assisted Living/

Long-Term Care

Small to Medium Setting

Cost Pressure

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Market Landscape: Small & Medium Quantity Generators

$0

$200

$400

$600

$800

$1,000

Local/Regional National/Full-Service

Revenues (in millions)

Market Opportunity

200+ Small Private

Local & Regional Providers

+

Well Positioned to Grow Organically and Through Acquisition

No Other

Providers

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Industry-Leading Mailback Offering

▪ Flagship solution available for all small to medium quantity

generators throughout the United States.

▪ Quickly scalable to meet market demands.

▪ Comprehensive solution for collecting sharps and other

small quantities of medical waste.

▪ Available in a vast array of sizes

and configurations to meet

market needs.

▪ Provides flexibility and expands

offering when blended with route-

based service.

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Strategic Expansion Of Route-Based Offering

▪ Extending our route-based reach through acquisitions in new geographic areas, tuck-in opportunities in current service areas and organic growth.

▪ Serving 14,175 direct route-based customers at 9.30.20

▪ Expanded footprint complements mailback offering to provide versatile solution options; enables engagement of larger customers with extensive locations.

▪ Provides more predictable revenue stream.

▪ Focused route-based strategy in densely populated areas.

▪ Strengthens our leadership in healthcare and retail markets.

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Evolution Of National FootprintWhere We Began

• Initial Mailback Service

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Service to 32 States & 70% of U.S. Population

Route-based service (via network)

Company owned route-based

Evolution Of National Footprint

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State-of-the-Art Treatment Facilities

Carthage, TX

▪ 1 of 10 permitted incinerators for medical waste and

unused medications in the U.S.

▪ 2 autoclaves

Nesquehoning, PA

▪ 2 Autoclaves

Treating Sharps-Collected Waste

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Significant Capacity Available To Support Growth At Treatment Facilities

Expanded Processing Capacity to 27 Million Pounds Per Year From

10 million a year ago

Current

Shifts

1

2

3

Shifts

1

2

3

Total Capacity

• Running two

autoclaves with

one shift each

• Capacity to run 3

shifts each

• Footprint is now

40,000 square feet

for treatment,

Current

Shifts

1

2

3

Shifts

1

2

3

Total Capacity

Carthage, TX Nesquehoning, PA

• Running 1.5 shifts

for autoclaves and

one shift for

incinerator

• Capacity to run 3

shifts each

• Increased footprint

from 13,000 square

feet to 30,500

square feet

• August 2020: Added

second autoclave to

expand capacity

Autoclave

IncineratorAutoclave

Autoclave

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Shift To Full-Service

Route-based28%

Mailback72%

2020

Mailback 99%

Route-based 1%

2013

Route-based as Percentage of Medical Waste Revenue

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Attractive Segments In Small To Medium Quantity Generator Markets; Addressing Medical Waste Only

2. Assumes about 45% of adults received flu shots and about 40% of U.S. flu shots for adults administered in retail pharmacies, per industry sources

1. Average projected growth rates of physician, dental, and veterinary spending

3. Over the flu seasons from 2011-2020, Sharps saw growth in seven years of 10% to 36%, including a 25% increase in 2020, and declines in three years of 13% to 17%.

Market Market Size

Market

Growth

Rate

Current

Penetration

Professional $727M 5%¹ 2%

Long-Term Care $85M 6% 4%

Home Health Care $100M 7% 10%

Retail Pharmacy $15.6M² 20-25%³ 71%

(FY 2020)

4. Excludes revenues associated with unused medications solutions

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$727M

Market

Opportunity

Professional Market

• Dental

• Veterinarian

• Physicians

• Labs

• Urgent Care

• Surgery Centers

• Dialysis Centers

• Funeral Homes

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800,000

Professional

Offices (U.S.)

20

Long-Term Care Market

*National Institute on Aging

Market Opportunity

$85M

Total

Addressable

Market

1 in 5 Americans

Age 65+

Customers

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21

Retail Pharmacy Market

We serve 69% of retail immunizing pharmacies

*2016 and 2018 per Centers for Disease Control

and Prevention, November 2018. 2019 and 2020

per industry sources.

Market Opportunity

Percentage of adults getting flu

shots in the retail setting:

24%

2016

32%

2018

21

40%

2019

Retail

Pharmacies

Expect up

to 50% in

2020

22

COVID-19 Operational Update

Providing Uninterrupted Essential Medical Waste Solutions to Healthcare Customers

▪ Increased route-based drivers, plant & operations personnel by 10% to ensure operations wouldn’t be adversely impacted by potential employee absences

▪ Temporarily increased pay for frontline operations through June 2020

Increased medical waste processing capacity from 10 million to 27 million pounds

▪ Carthage facility: added new, larger autoclave and expanded footprint

▪ Pennsylvania facility: Added second autoclave; secured larger warehouse and distribution facility to store and distribute larger volumes of medical waste mailbacks

Preparing For Increased Immunizations

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Potential COVID-19

vaccine available in

late 2020 to early 2021

Tracking closely and

will ensure customers

are supported

- Increasing flu

mailback inventory 2x

to 3x for 20/21season

- Expect pandemic to

motivate more flu

shots

~$8M is typical

revenue

generated from

flu season

Leadership Position In Retail Clinics Where ~40% of Flu and Other Immunizations are Administered

Historical

Near-Term

Medium-Long Term

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24

UNUSED MEDICATIONS

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Unused Medications Market Opportunity Growing Concern Given Opioid Epidemic and Accidental Overdoses

~250M lbs. Unused Medication

Waste Per Year

$1BMarket

Opportunity

Sharps Unused Medication Revenue increased from

$1.3 million in 2014 to $9.2 million in 2020

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Unused Medication & Controlled Substances: MedSafe

Solution Designed to Meet or Exceed DEA Proper Disposal Guidelines:

Helping Address the Opioid Abuse Crisis

Customers

Pharmacies (retail and hospital)

Long-term care facilities

Government & local law enforcement

Narcotic treatment programs

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Growing Installed Base of MedSafe Creates Recurring Revenue Opportunity

Installs: 876

Returned Liners: 5,583

(3/31/17)

Installs: 2,173

Returned Liners: 13,182

(3/31/18)

Installs: 5,700

Returned Liners: 61,300

(9/30/20)

Installs: 3,200

Returned Liners: 28,500

(3/31/19)

Installs: 4,700

Returned Liners: 50,000+

(3/31/20)

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Solution Designed to Meet or Exceed DEA Proper Disposal Guidelines:

▪ TakeAway Medication Recovery

System™ envelopes for proper

mailback disposal of unused

medication, including controlled

substances, from ultimate users

Unused Medication & Controlled Substances: Takeaway Envelopes

Customers

Retail pharmacies

Long-term care

VA & Military

Note: Envelope image shown above is for marketing purposes only. The actual envelope is not branded as

to meet the requirements of the Disposal Act (nondescript packaging).

~3.9M TakeAway Medication Recovery

System™ envelopes sold since 2009

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New Solution Offering: Takeaway Recycle System

Increased Use of Single Use Devices in Healthcare Settings Driving Need For Compliant

Solutions for Recyclable Components

Customers

Surgery Centers

Hospitals

Device Manufacturers

Opportunity to bundle the original product

with the Sharps TakeAway Recycle

System

Solution Designed for Compliant, Sustainable Disposal/Recycling of Single Use Devices:

• Laryngoscopes

• Tubes

• Masks

• Forceps

• Scopes

• Airway Management

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FINANCIAL REVIEW

74.6%

2.8%

8.6%

14.0%

52.0%

20.3%

17.9%

9.8%

FY 2015 Revenue $30.9 million

FY 2020 Revenue $51.1 million

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Breakdown By Solution

Mailback

Route-Based

Unused Medications

Other

Home Health Care19%

Retail30%

Pharmaceutical Manufacturer

9%

Long-term Care6%

Other2%

Professional29%

Government4%

Environmental1%

Home Health Care55%

Retail8%

Pharmaceutical Manufacturer

7%

Long-term Care9%

Other15%

Professional 6%

FY 2008 Billings $13.2 million

FY 2020 Billings$53.0 million

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Increased Revenue Diversity By Market

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Billings By Market & Solution

* Represents the net impact of the revenue recognition adjustments to arrive at reported GAAP revenue. Customer billings

include all invoiced amounts for products shipped or services rendered during the period reported. GAAP revenue includes

customer billings as well as numerous adjustments necessary to reflect, (i) the deferral of a portion of current period sales, (ii)

recognition of certain revenue associated with product returned for treatment and destruction and (iii) provisions for certain

product returns and discounts to customers which are accounted for as reductions in sales in the same period the related sales

are recorded..

Three Months Ended September 30,

2020 % Total 2019 $ Change %

BILLINGS BY Solution:

Mailbacks $ 6,439 47.9% $ 7,737 $ (1,298 ) (16.8 )%

Route-Based Pickup 3,156 23.5% 2,657 499 18.8 %

Unused Medications 2,361 17.6% 2,383 (22) (0.9 )%

Third Party Treatment 135 1.0% 19 116 610.5 %

Other 1,337 10.0% 1,423 (86) (6.0 )%

Total Billings By Solution $ 13,428 100.0% $ 14,219 $ (791 ) (5.6 )%

Three Months Ended September 30,

2020 % Total 2019 $ Change %

BILLINGS BY MARKET:

Professional $ 4,133 30.8% $ 4,135 $ (2 ) 0 %

Retail 3,647 27.2% 4,142 (495) (12.0) %

Home Health Care 2,348 17.5% 3,317 (969) (29.2) %

Pharmaceutical Manufacturer 1,179 8.8% 937 242 25.8 %

Long-Term Care 1,309 9.7% 624 685 109.8 %

Government 515 3.8% 764 (249) (32.6) %

Environmental 135 1.0% 19 116 610.5 %

Other 162 1.2% 281 (119) (42.3) %

Subtotal $ 13,428 100.0% $ 14,219 $ (791) (5.6) %

GAAP Adjustment * (277) (620) 343

Revenue Reported $ 13,151 $ 13,599 $ (448) (3.3) %

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$21.5

$26.6

$30.9$33.4

$38.2$40.1

$44.3 $51.1

$-

$10

$20

$30

$40

$50

$60

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY2020

($ in millions)

Steady Annual Revenue Growth:

10.6 % 5-year CAGR

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Select Financials

(In thousands,

excluding per share data)

Three Months Ended

Sept. 30,

2020

Three Months Ended

Sept. 30,

2019

Revenue $13,151 $13,599

Gross Margin 27.5% 33.0%

SG&A Expense $3,788 $3,512

% of Sales 28.8% 25.8%

Net Income (Loss) $(293) $686

Net Income (Loss) Per

Share$(0.02) $0.04

EBITDA $59 $1,189

Strong Balance Sheet: $10.1M in Working Capital

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Attractive Business Model

Significant Operating Leverage

▪ Costs are relatively fixed• Operating infrastructure in place to grow 2-3X

▪ 45% - 50% gross margins on incremental revenues▪ 10%+ SG&A increase on incremental revenues

High Recurring Revenue

▪ Recurring revenue model; high customer retention rates• Expect strong flu immunization season potentially followed by COVID-19

immunization effort and anticipated growth in the long-term care, home healthcare and professional markets

Attractive Alternative For Marketplace

▪ Competitive contract pricing and terms

▪ Customizable solution

▪ Nationwide coverage

▪ Route-based footprint expansion to 32 states or 70% of population increases new

prospect pipeline of larger small and medium quantity generators

Thank You

NASDAQ:SMED