Slide 1: Richardson Electronics Q3 FY2025 Investor Presentation
Richardson Electronics Q3 FY2025 Investor Presentation April 11, 2025 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 approximately 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” b
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: January 2025 Richardson Healthcare Strategic Transaction
January 2025 Richardson Healthcare Strategic Transaction • In January 2025, Richardson announced a strategic transaction in which the Company sold Overview most Richardson Healthcare assets to DirectMed Imaging (DirectMed) • Transaction closed on January 24, 2025 • The sale price was $8.2 million in
Slide 8: Our Business Units
Our Business Units 8 Power & Microwave Green Energy Solutions Canvys Technology (PMT) (GES) o FY2024 Revenue: $128.7M o FY2024 Revenue: $23.2M o FY2024 Revenue: $32.4M o Power grid and microwave tubes o Designs and manufactures key o Custom display solutions for (EDG) products for the fast-growing e
Slide 9: Growth Strategies
SOF emt Richardson — => Electronics - ce Ve Growth Strategies
Slide 10: 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 11: PMG/GES Power Management Roadmap
PMG/GES Power Management Roadmap Long-standing relationships with leading components manufacturers combined with our in-house manufacturing and engineering capabilities supports a multi-year strategy aimed at providing higher value sales Modules System Technology Partners Engineered Solutions Energy
Slide 12: Other Mid-Term Solutions
Other Mid-Term Solutions Key Markets: • Power management • Green Energy Solutions (GES) Key Applications: Transportation Industrial Energy Storage Wind/Solar Key Products Key Products Key Products Key Products • Metra Emergency Lighting • LiFeP04 Battery • C&I BESS • Pitch Energy Modules • Engine St
Slide 13: FY26-28 Wind Turbine Opportunity
FY26-28 Wind Turbine Opportunity 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 turbine pitch systems. the
Slide 14: FY26 – FY28 Energy Storage Solutions (ESS)
FY26 – FY28 Energy Storage Solutions (ESS) New energy storage technologies bring disruptive technologies into niche markets. Leveraging RELL’s Go to Market and Market Opportunity Platform and Capabilities Development Strategies • $25 billion global market for battery • Existing technology partners C
Slide 15: Key Customers
Key Customers $ SOM Investor Presentation | © Richardson Electronics, Ltd. 15
Slide 16: FY2025 Business Updates
FY2025 Business Updates • Expect near-term volatility associated with potential impacts on global trade from U.S. trade and economic policies • Longer term expect to capitalize on current policies intended to drive manufacturing back to the US and increase the need for US content • Steady/increasing
Slide 17: Financials
Financials 17
Slide 18: YTD FY2025 Financial Highlights
YTD FY2025 Financial Highlights(1) Net Sales 5-Year Growth ($ in millions) $157.0 $196.5 $149.1 • Consolidated net sales for the first nine months of FY2025 $166.7 increased 5.3% year-over-year to $157.0 million, primarily due to higher sales in PMT and GES • Semiconductor wafer fab sales surged 139
Slide 19: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow(1) • Strong balance sheet with no debt, and $36.7 million in cash and cash equivalents March 1, June 1, ($s in 000s) 2025 2024 • No borrowings outstanding under $30.0 million revolving line of Cash and Cash credit Equivalents $36,675 $24,263 • Generated $10.5 million of o
Slide 20: 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 $4.8 million in facility
Slide 21: Backlog
Backlog Total Company Backlog ($ in millions) $250 • Total backlog at the end of Q3 FY2025 $200 was $134.1 million versus $142.6 million at the end of Q2 FY2025, and $59.5 million in FY2019. $150 • Backlog up more than 120% since FY2019 • The Company’s sales pipeline remains $100 solid; however, the
Slide 22: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation 22
Slide 23: Reconciliation of Non-GAAP Net Income
Reconciliation of Non-GAAP Net Income Unaudited ($ in thousands) Three Months Ended Nine Months Ended March 1, 2025 March 2, 2024 March 1, 2025 March 2, 2024 Net (loss) income $ (2,057) $ 750 $ (2,218) $ 180 Disposal of Healthcare assets 3,638 — 3,638 — Non-GAAP Net Income $ 1,581 $ 750 $ 1,420 $ 18