Slide 1: Richardson Electronics Sidoti Presentation
Richardson Electronics Sidoti Presentation November 14, 2024 NASDAQ: RELL
Slide 2: 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 3: 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 4: About Richardson Electronics
About Richardson Electronics 4
Slide 5: 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 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: Growth Strategies
SOF emt Richardson — => Electronics - ce Ve Growth Strategies
Slide 9: 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 10: 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 11: Unique Relationships with Technology Partners Deepens Customer 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 12: 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 13: 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 14: FY2025 Updates
FY2025 Updates • Semiconductor Wafer Fab Equipment market is improving; quarter over quarter sales growth and increasing backlog • Steady/increasing sales of wind turbine modules • Daily shipments from existing inventory • New significant orders from existing customers • New significant orders from
Slide 15: Financials
Financials 15
Slide 16: 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 17: 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 18: 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 $4.8 million in facility
Slide 19: Backlog
Backlog Total Company Backlog ($ 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 20: 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 21: A Legacy of Engineered Solutions. A Future of Innovation.
A Legacy of Engineered Solutions. A Future of Innovation. 21
Slide 22: Appendix: Business Unit Update
Appendix: Business Unit Update 22
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: PMT/GES FY25 Key Initiatives
PMT/GES FY25 Key Initiatives • Continue to review all aspects of the business to continually improve efficiencies to maximize profits • Maximize core tube MRO business and key RF & Microwave component opportunities • Global launch of pitch energy modules • GE • Suzlon • Senvion • Nordex • SSB • Expa
Slide 29: 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 30: Healthcare FY25 Key Initiatives
Healthcare FY25 Key Initiatives • Grow Sales – Gain traction with repaired Straton Z throughout year – Launch MX series in first half of CY2025 – Maintain ALTA sales – Achieve moderate increases in Parts and Equipment sales • Improve Gross Margin – Maintain sufficient production levels through impro
Slide 31: 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 32: 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 33: Canvys FY25 Key Initiatives
Canvys FY25 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