30 slides from Richardson Electronics's shareholder meeting presentation, Oct 8, 2019
Slide 1: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS October 8, 2019
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 • FY19 Financials: Robert Ben • Power & Microwave Technologies: Greg Peloquin • Richardson Healthcare: Wendy Diddell • Canvys: Jens Ruppert • Q&A: Edward J. Richardson
Slide 4: Introductions: Board of Directors
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: Introductions: Auditors and Management Team
Introductions • Independent Auditors • Gianni Bernardi, Partner, BDO • Christopher Tylka, Partner, BDO • REL Management Team • Robert Ben, EVP and Chief Financial Officer • Wendy Diddell, EVP Chief Operating Officer and GM, Richardson Healthcare • Greg Peloquin, EVP Power & Microwave Technologies Gr
Slide 6: Formal Proceedings
Formal Proceedings Robert Ben EVP and Chief Financial Officer
Slide 7: Company Overview
Company Overview Edward J. Richardson Chairman of the Board, Chief Executive Officer & President
Slide 8: Facts and Figures
Founded in 1947, Richardson Electronics, Ltd. has a rich and unique history Facts and Figures of engineering, manufacturing and distributing power grid and microwave tubes and related consumables, and customized display solutions. • Three Business Units: PMT, RHC and Canvys each initiated by custome
Slide 9: FY19 in Summary
FY19 in Summary • The complexity of our business relative to the size of the business • Global structure is required to service our core business • Will be an asset as we expand in new power management and healthcare markets • Our key initiatives are starting to contribute to operating performance •
Slide 10: FY 2019 Financials
FY 2019 Financials Robert Ben
Slide 11: FY 2019 Results
FY 2019 RESULTS FY2019 FY2018 Net sales $ 166,652 $ 163,212 Cost of sales 114,917 108,130 Gross margin 51,735 55,082 gross margin % 31.0% 33.7% SG&A expenses 52,156 51,729 % of net sales 31.3% 31.7% Impairment of goodwill 6,332 - Loss (gain) on disposal of assets 23 (276) Operating income (loss) (6,
Slide 12: FY 2019 Balance Sheet
FY 2019 BALANCE SHEET FY19 FY19 FY19 FY19 FY18 FY17 Q4 Q3 Q2 Q1 Q4 Q4 Cash & Investments: Cash $ 42,019 $ 33,869 $ 47,859 $ 52,478 $ 60,465 $ 55,327 ST investments 8,000 15,500 5,300 2,300 - 6,429 LT investments - - - - - 2,419 Total $ 50,019 $ 49,369 $ 53,159 $ 54,778 $ 60,465 $ 64,175 Working Capi
Slide 13: FY 2019 Cash Flow
FY 2019 CASH FLOW YTD Oper Cash Capital Effect of Beginning Cash * Use Expenditures Dividends Exchange Rates Other Ending Cash * 70,000 60,465 60,000 (2,563) 259 50,019 50,000 ( 3,874 ) (3,076) (1,192) 40,000 thousands 30,000 20,000 10,000 0 * Total cash & investments
Slide 14: Thank You
Richardson Electronics Thank You
Slide 15: Strategic Business Unit Overview
Strategic Business Unit Overview
Slide 16: Power & Microwave Technologies
Power & Microwave Technologies Greg Peloquin
Slide 17: 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 18: FY19 Highlights
FY19 Highlights • Overall sales grew slightly in FY19 despite major market downturn in the semiconductor wafer fab industry. • New technology partners continued to gain traction with strong sales growth in FY19. • Market share gains in numerous Electron Device business units. • Strong management of
Slide 19: PMT FY20 Key Initiatives
PMT FY20 Key Initiatives • Grow and monitor market share in our power grid and microwave tube business. • Protect this strength and profitable business through continual contact. • Focus on margin improvement. • Look for new tube opportunities/applications. • Launch hard our new technologies support
Slide 20: PMT FY20 Key Initiatives
PMT FY20 Key Initiatives • Expand our customer base and markets. • Identify growth opportunities for Engineered Solutions. • Expand market shares of existing customers. • Identify technology partners and products to support our niche markets. • Manage cost in line with improved profitability objecti
Slide 21: Richardson Healthcare
Richardson Healthcare Wendy Diddell
Slide 22: 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 23: Healthcare FY19 Highlights
Healthcare FY19 Highlights • Officially released ALTA750 CT tube in late May after extensive internal/external testing – Tubes sold in eight countries, 16 states and Puerto Rico – Longest running tubes nearing 500 days – Good interest in P3 parts contracts – Increased system price/margin and created
Slide 24: Healthcare FY20 Key Initiatives
Healthcare FY20 Key Initiatives • Grow ALTA and P3 sales – Align pricing strategies by market – Focus on smaller hospital groups through outbound telemarketing – Continue to increase system sales to create additional sockets for parts, tubes, service training – Secure global registrations necessary
Slide 25: Canvys
Richardson Electronics Canvys Jens Ruppert
Slide 26: 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 with very high quality and strict product-life-cycle requirements including the medical device, public transp
Slide 27: Canvys FY19 Highlights
Canvys FY19 Highlights • Generated positive direct operating contribution. • Won several important deals in the medical, industrial and transportation markets that are the foundation for growth in FY20 and beyond. • Decreased expenses as a percentage of sales. 27
Slide 28: Canvys FY20 Key Initiatives
Canvys FY20 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 keeping Canvys a significant contributor to operating profit 2
Slide 29: Questions and Discussion
Questions and Discussion Edward J. Richardson
Slide 30: Thank You
Thank You Thank You