Richardson Electronics, Ltd. · NASDAQ:RELL
Richardson Electronics — Shareholder Meeting (October 2021)
35 slides from Richardson Electronics's shareholder meeting presentation, Oct 5, 2021
Slide 1: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS October 5, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement During the course of this presentation, the Company may make certain "forward-looking" statements as defined by the SEC. Such statements regarding the Company's business which are not historical facts represent "forward-looking statements" that involve risks and uncertainties.
Slide 3: Agenda
Agenda • Introductions: Edward J Richardson • Formal Proceedings: Robert Ben • Company Overview: Edward J. Richardson • FY20 Financials: Robert Ben • Power & Microwave Technologies: Greg Peloquin • Richardson Healthcare: Wendy Diddell • Canvys: Wendy Diddell • DEI&B: Wendy Diddell • Q&A: Edward J. R
Slide 4: Introductions: Board of Directors, Independent Auditors
Introductions • Board of Directors • Edward J. Richardson, Chairman of the Board, Chief Executive Officer & President • Paul J. Plante, Owner, Florida Fresh Vending; former President and CEO of Reptron • Jacques Belin, Retired Managing Director of Thales Components and Subsystems • James Benham, Tec
Slide 5: Formal Proceedings
Formal Proceedings Robert Ben EVP and Chief Financial Officer
Slide 6: Company Overview
Company Overview Edward J. Richardson Chairman of the Board, Chief Executive Officer & President
Slide 7: Key Facts & Figures
7 Key Facts & Figures 400+ Employees; Sales offices & FY21 Sales $43.3 million more than half in ISO 9001:2015 Over 20,000 stocking locations $176.9M Up 13.5%; cash and sales, engineering ISO13485: 2016 worldwide; legal investments; and product Customers Certified entities in management no debt 24 c
Slide 8: Our Business Units
8 Our Business Units Power & Microwave Healthcare Canvys Technology (PMT) o Power grid and microwave tubes o Started in 2015; $35M+ invested o Custom display solutions for (EDG) o CT and MRI replacement tubes healthcare, industrial, retail and o Power management for Alternative o Diagnostic imaging
Slide 9: Key Growth Initiatives
Key Growth Initiatives 9
Slide 10: New Product Launch: ULTRA3000
New Product Launch: ULTRA3000® • Created to go after the ultracapacitor battery replacement market within wind turbine generators (WTG) • Direct replacement for acid/lead batteries within the GE 20 and 30 Nm pitch systems • Significantly enhances the reliability of the electric pitch control system
Slide 11: BSE Gen-Start Market Opportunity
BSE Gen-Start Market Opportunity • BSE Gen-Start is an ultracapacitor based replacement module for lead acid batteries in generators • Patent-pending technology • REL licensed exclusively for design support, manufacturing, and global sales and marketing • Uses REL experienced sales and marketing inf
Slide 12: New CT Tube Programs
Richardson Healthcare New CT Tube Programs Compatible with popular OEM CT scanners Form, Fit, Function Replacements ALTA750D launched May 2018 ALTA750G launch Summer/early Fall 2021 Siemens Repaired CT Tube Program 2022 12
Slide 13: Strategic Direction
13 Strategic Direction: Become a leading healthcare and power and microwave technology company with long term sales and earnings growth potential. o Organic Growth Why Richardson Electronics? o Product line expansion • Strong operating performance Expand range of alternative energy “green” solutio
Slide 14: Fiscal Year 2021 Financial Results
Fiscal Year 2021 Financial Results Robert Ben
Slide 15: FY 2021 Results
FY 2021 Results (in thousands) FY2021 FY2020 Fav/Unfav Net sales $ 176,937 $ 155,898 $ 21,039 Cost of sales 118,112 106,225 (11,887) Gross margin 58,825 49,673 9,152 gross margin % 33.2% 31.9% SG&A expenses 54,325 51,327 (2,998) % of net sales 31.6% 32.9% Legal settlement 1,600 - (1,600) Loss on dis
Slide 16: FY 2021 Balance Sheet
FY 2021 Balance Sheet (in thousands) FY21 FY21 FY21 FY21 FY20 FY19 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 4th Qtr Cash & Investments: Cash $ 43,316 $ 38,407 $ 37,023 $ 33,495 $ 30,535 $ 42,019 ST investments - 9,000 9,000 9,000 16,000 8,000 LT investments - - - - - - Total $ 43,316 $ 47,407 $ 46,02
Slide 17: FY2021 Cash Bridge
FY2021 Cash Bridge * Total cash & investments 17
Slide 18: Unaudited Reconciliation between GAAP and Non-GAAP Financial Measures
Unaudited Reconciliation between GAAP and Non-GAAP Financial Measures FY2021 FY2020 Operating income (loss) reconciliation Operating income (loss) $ 2,887 $ (1,657) Legal settlement 1,600 - Non-GAAP operating income (loss) reconciliation $ 4,487 $ (1,657) Net income (loss) reconciliation Net income
Slide 19: Strategic Business Unit Overview
Strategic Business Unit Overview
Slide 20: Power & Microwave Technologies
Power & Microwave Technologies Greg Peloquin
Slide 21: PMT Strategy – Solving Our Customer and Technology Partners Problems
PMT Strategy – Solving Our Customer and Technology Partners Problems • Focus on technology partnerships with leaders in electron devices, power semiconductors, and RF/Microwave components and systems. • Global relationship and capabilities to bring those products to market and to support those produ
Slide 22: PMT FY21 Highlights
FY21 Highlights • Improved profitability with top line growth through new technology partners and market share gains in key growth areas • Signed new technology partners that fill technology gaps in our capabilities • Resources and investments focused on high growth opportunities • Market share gain
Slide 23: PMT FY22 Key Initiatives
PMT FY22 Key Initiatives • Launch hard our new technologies in Power Management and RF/Microwave supporting our top line growth initiatives • Capitalize on our existing infrastructure • Realize revenue gains from new suppliers and internal engineering • Identify and support key market growth in 5G,
Slide 24: Richardson Healthcare
Richardson Healthcare Wendy Diddell
Slide 25: Healthcare Strategy
Healthcare Strategy • Richardson is the first global non-OEM provider of Diagnostic Imaging replacement parts, training and support solutions • We differentiate ourselves from other replacement parts providers by offering high value solutions like: ‒ Third party and CPO replacement CT tubes ‒ P3 cap
Slide 26: Healthcare FY21 Highlights
Healthcare FY21 Highlights • Sales exceeded prior year by 21.7% – Slow start in Q1 due to COVID – Tube sales 53.4% above prior year; quarter over quarter growth in ALTA750D unit sales – Equipment sales were above plan and down slightly to prior year—lack of system availability – Europe sales 125.1%
Slide 27: Healthcare FY22 Key Initiatives
Healthcare FY22 Key Initiatives • Grow Sales – Double the number ALTA tubes sold • Launch ALTA750G • Sell minimum of 10 repaired Siemens tubes • New countries in the EU • Full year sales in China • Expand our US customer pool • MDSAP/Canadian registration for sales in Canada – Achieve moderate incre
Slide 28: Canvys
Canvys Wendy Diddell/Jens Ruppert
Slide 29: Canvys Strategy
Canvys Strategy • Understand the visual technology needs of Original Equipment Manufacturers and other customers and deliver solutions that exceed their expectations. • Serve unique markets, including the medical device, public transportation and industrial markets, with very high quality and strict
Slide 30: Canvys FY21 Highlights
Canvys FY21 Highlights • Generated direct operating contribution. • YoY growth, despite the COVID-19 pandemic. • Won several important deals in the medical, industrial and transportation markets that are the foundation for growth in FY22 and beyond. 30
Slide 31: Canvys FY22 Key Initiatives
Canvys FY22 Key Initiatives • Focus on new customer acquisition without losing sight of existing customers and programs. • Pursue new technologies and other means of differentiating products. • Ongoing strategic review with the objective of keeping Canvys a significant contributor to operating profi
Slide 32: Diversity, Equity, Inclusion & Belonging
Diversity, Equity, Inclusion & Belonging Wendy Diddell
Slide 33: DEI&B What We've Done
DEI&B What We’ve Done – Creation of a DEI&B Committee – Addition of a Diversity Commitment to all job postings – Addition of Wendy Diddell to the Board of Directors as the first female board member – Measurement of management performance with direct ties to their participation in the DEI&B initiativ
Slide 34: Questions and Discussion
Questions and Discussion Edward J. Richardson
Slide 35: Thank You
Richardson Electronics ai tual ~ Pa - — — = Thank You
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