Slide 1: Richardson Electronics Q1 FY2025 Investor Presentation
Richardson Electronics Q1 FY2025 Investor Presentation October 9, 2024 NASDAQ: RELL
Slide 2: Forward Looking Statement
Forward Looking Statement This overview includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements regarding the Company’s business which are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a di
Slide 3: About Richardson Electronics
About Richardson Electronics 3
Slide 4: Engineered Solutions
ENGINEERED SOLUTIONS Richardson Electronics (NASDAQ: RELL) designs and manufactures nearly 50% of the products it sells for power, microwave, and imaging solutions to industries worldwide. Technical expertise and Value added solutions through Global infrastructure and “engineered solutions” based on
Slide 5: Vision, Mission, Values
VISION To make our world a better, more sustainable place by providing innovative technology solutions. MISSION VALUES We provide solutions that improve our • We are a diverse family; we take care of our world through innovative engineering and people. manufacturing in collaboration with our • We fo
Slide 6: Key Facts & Figures
Key Facts & Figures Strong balance sheet with robust cash and cash equivalents and no debt Certified experts that are ISO 9001:2015 and ISO 13485:2016 certified 440+ employees with over half in sales, engineering and product management More than 20,000 OEM and end-user customers throughout the world
Slide 7: Our Business Units
Our Business Units 7 Power & Microwave Green Energy Solutions Healthcare Canvys Technology (PMT) (GES) o FY2024 Revenue: $128.7M o FY2024 Revenue: $23.2M o FY2024 Revenue: $12.1M o FY2024 Revenue: $32.4M o Power grid and microwave o Designs and manufactures key o CT and MRI replacement tubes o Custo
Slide 8: A Legacy of Engineered Solutions, A Future of Innovation
A Legacy of Engineered Solutions A Future of Innovation Ignitrons & Microwave Power Grid Tubes CW Magnetrons Thyratrons Generators Pulse Magnetrons CT Replacement Refurbished CT Custom OEM All-In-One Ultracapacitors Tubes Systems Displays Computer Solutions Investor Presentation | © Richardson Elect
Slide 9: Local Service Supported Through Extensive Network of Over 60 Global Locations
Local Service Supported Through Extensive Network of Over 60 Global Locations FY2024 Sales by Geography Sophisticated Global Infrastructure • More than 60 sales offices & stocking locations • Global field engineering support including over 75 RF, Microwave and CT engineers for leading technology sup
Slide 10: Growth Strategies
OF ce Richardson _ —oe Electronics Growth Strategies
Slide 11: Strategy Supported by Strong Core Business, New Products and New Markets
Strategy Supported by Strong Core Business, New Products and New Markets Management has created a strategic plan focused on driving growth and creating sustainable value for shareholders Growth supported by strong core Strategy focused on leveraging core Global footprint supports customers and busin
Slide 12: Unique Relationships with Technology Partners Deepens Customers Relationships
Unique Relationships with Technology Partners Deepens Customers Relationships Technology Engineered Partners Solutions Customers Strong relationships with global technology partners expands Richardson Electronics’ sales and deepens customer relationships from components to Engineered Solutions Inves
Slide 13: Growth Opportunities and Focus
Growth Opportunities and Focus: Richardson’s Strategy Aligned with Compelling Market Dynamics Market Market Driver / Update Richardson Opportunity • Power management section of systems • Developing patented technology for niche using distributive technology applications in niche markets Green Energy
Slide 14: Growth Strategies Align with Large Multi-Year Secular Trends
Growth Strategies Align with Large Multi-Year Secular Trends IRA (Inflation Reduction Act)¹ Growing Wind Generation⁴ • $370 Billion invested in Energy Security and Climate Change (billion kilowatt hours) Programs (electric, solar, battery) over the next ten years. 1,200 • The Inflation Reduction Act
Slide 15: ULTRA3000 Case Study: New Product and Market Development
ULTRA3000® Case Study: New Product and Market Development Customer Problem: Richardson Electronics’ Solutions: Wind turbine manufacturers and operators needed Developed the first ultracapacitor-based plug-and-play an environmentally friendly solution to extend replacement for batteries within wind t
Slide 16: Progress Rail Case Study: Building Larger Customer Relationships
Progress Rail Case Study: Building Larger Customer Relationships Relationship with Progress Rail 1 begins, and Richardson Electronics starts supplying IGBT power module design to Progress Rail in Brazil Initial Power Modules Richardson Electronics began 2 working on a design development for battery
Slide 17: Business Unit Update
Business Unit Update 17
Slide 18: Green Energy Solutions (GES) Opportunity
Green Energy Solutions (GES) Opportunity High double-digit year-over-year Targeted 30-40% average GES gross revenue growth target margin Pitch Energy Power Systems Power Modules Power Control Superstructures for Utility Scale Modules For Industrial, For EV-Electric Systems EV-Electric Energy Storage
Slide 19: GES Q1 FY2025 Update
GES Q1 FY2025 Update GES Highlights • In Q1 FY2025, GES sales grew 84% year-over-year, driven by growth in numerous new products, programs, and customers • Customer pipeline and opportunities continue to increase as the Company capitalizes on significant energy transformation projects • Improved sal
Slide 20: Power & Microwave Technology (PMT) Opportunity
Power & Microwave Technology (PMT) Opportunity Bringing key technologies and solutions The leading provider of power and microwave components and to the world for power, microwave niche related consumable parts applications o Electron Device Group (EDG) which includes legacy tube business and semico
Slide 21: PMT Q1 FY2025 Update
PMT Q1 FY2025 Update PMT Highlights • Q1 FY2025 sales declined 4.3% compared to the prior year due to product mix, a nonrepeating order from the U.S. government, and a 13-week quarter versus 14 weeks in Q1 FY2024. • Experienced growth in RF and microwave components business, as well as the semicondu
Slide 22: Healthcare Opportunity
Healthcare Opportunity Richardson Healthcare provides OEM quality replacement parts and training to support in-house clinical engineering and third-party equipment maintenance companies. Richardson Healthcare’s CT Tube The Company has invested over $35 Richardson Healthcare first launched the Progra
Slide 23: Healthcare Q1 FY2025 Update
Healthcare Q1 FY2025 Update Healthcare Highlights • Q1 FY2025 sales increased 48.7% compared to the same quarter last year. • All healthcare product lines showed growth over the prior year’s first quarter, primarily driven by the repaired Siemens Straton Z tubes and the Company’s proprietary ALTA tu
Slide 24: Canvys Opportunity
Canvys Opportunity Canvys is a global value-added integrator and manufacturer that specializes in creating comprehensive visual technology solutions for OEMs. Canvys is focused on providing small run, Canvys brings together a deep Expertise manufacturing display sizes smart displays for specialized
Slide 25: Canvys Q1 FY2025 Update
Canvys Q1 FY2025 Update Canvys Highlights • Net sales decreased 22.8% year-over-year in the first quarter of FY2025 due to lower demand in both North American and European markets. • Management remains optimistic that customer demand will see an upturn by early next calendar year • Many new programs
Slide 26: Financials
Financials 26
Slide 27: Q1 FY2025 Financial Highlights
Q1 FY2025 Financial Highlights Net Sales ($ in millions) 5-Year Growth CAGR Growth: 3.3% $53.7 $196.5 $52.6 • Strong start to the fiscal year, with net sales exceeding both $166.7 internal projections and exceeding performance from the fiscal 2024 first quarter. • Sales expanded in the Green Energy
Slide 28: Q1 FY2025 Balance Sheet and Cash Flow
Q1 FY2025 Balance Sheet and Cash Flow • Strong balance sheet with no debt, and $23.0 million in cash and August 31, June 1, cash equivalents ($s in 000s) 2024 2024 Cash and Cash • No borrowings outstanding under $30.0 million revolving line of Equivalents $23,035 $24,263 credit Accounts $30,862 $24,
Slide 29: Capital Allocation
Capital Allocation Debt free balance sheet allows for strategic deployment of capital Capital Allocation Strategies Focused on Supporting Long-Term Growth Opportunities Capital Allocation Priorities Investing in Infrastructure and IT Systems $ in thousands $45,000 • Invested $4.8 million in facility
Slide 30: Backlog
Backlog Total Company Backlog ($ in millions) • Total backlog at the end of Q1 FY2025 $250 was $137.4 million versus $147.8 million at the end of Q4 FY2024, and $59.5 million in FY2019. $200 • Combined GES and PMT backlog of $97 million at August 31, 2024 $150 • Growing backlog for semiconductor waf
Slide 31: Health of the Business
Health of the Business • We remain optimistic about our growth opportunities, based on customer demand for recently launched products, new technology partners, semiconductor wafer fab recovery and new engineered solutions • We continue to gain market share with new customers, exclusive supplier agre
Slide 32: Appendix: Detailed Company Overview
Appendix Detailed Company Overview 32
Slide 33: Green Energy Solutions (GES)
Green Energy Solutions (“GES”) GREEN ENERGY SOLUTIONS Strategic Business Unit Overview: GES Product and Services Highlights • Newest strategic business unit formed because of our exceptional Battery Modules and growth in demand for green energy applications (sales previously Ultracapacitor Pitch Ene
Slide 34: Power and Microwave Technologies (PMT)
Power and Microwave Technologies (“PMT”) Strategic Business Unit Overview: PMT Product and Services Highlights • The leading distributor of power grid and microwave tubes and related consumable parts (EDG Group) EDG Products • Power and Microwave Group (PMG) brings key semiconductor active and passi
Slide 35: Richardson Healthcare
Richardson Healthcare Strategic Business Unit Overview: Healthcare Product and Services Highlights • Richardson Healthcare helps lower the cost of healthcare delivery with high value parts, upgrades and training solutions for hospitals and third-party service providers CT Tubes Parts • Healthcare ma
Slide 36: Canvys
Canvys Strategic Business Unit Overview: Canvys Product Highlights • Canvys develops custom display and All-In-One computer solutions for Original Equipment Manufacturers (OEMs). We evaluate each customer's unique needs and craft the right solution 5” to 58” Custom Displays • Key capabilities suppor