Slide 1: Richardson Electronics Q2 FY2025 Update Investor Presentation
Richardson Electronics Q2 FY2025 – Update Investor Presentation January 24, 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 the Overview majority of Richardson Healthcare assets to DirectMed Imaging (DirectMed) • For fiscal year 2024, Richardson Healthcare had revenue of $12.1
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
a Richardson agent Ee Electronics 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: 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 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 • Regular shipments from existing inventory • New significant orders from existing customers • Anticipated new significan
Slide 15: Financials
Nasdaq RELL fy NasdaqListed j Financials 15
Slide 16: Q2 FY2025 Financial Highlights
Q2 FY2025 Financial Highlights(1) Net Sales ($ in millions) 5-Year Growth $49.5 $196.5 • Consolidated net sales for Q2 FY2025 increased 12.1% to $49.5 million, compared to net sales of $44.1 million in the prior year’s $44.1 $166.7 second quarter. This was the second consecutive quarterly year- over
Slide 17: Q2 FY2025 Balance Sheet and Cash Flow
Q2 FY2025 Balance Sheet and Cash Flow(1) • Strong balance sheet with no debt, and $26.6 million in cash and November 30, June 1, cash equivalents ($s in 000s) 2024 2024 Cash and Cash • No borrowings outstanding under $30.0 million revolving line of Equivalents $26,635 $24,263 credit Accounts $25,765
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 $4.8 million in facility
Slide 19: Backlog
Backlog(1) Total Company Backlog ($ in millions) • Total backlog at the end of Q2 FY2025 $250 was $142.6 million versus $137.4 million at the end of Q1 FY2025, and $59.5 million in FY2019. $200 • The sequential increase was primarily in GES with a small increase in Canvys $150 • Backlog stabilizing
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: Appendix: Business Unit Update
Appendix: Business Unit Update 21
Slide 22: 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 23: GES Q2 FY2025 Update
GES Q2 FY2025 Update GES Highlights • In Q2 FY2025, GES net sales grew 129.0% year-over-year, driven by higher sales of wind turbine battery modules • Customer pipeline and opportunities continue to increase as the Company capitalizes on significant energy transformation projects • Improved sales ex
Slide 24: 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 25: PMT Q2 FY2025 Update
PMT Q2 FY2025 Update PMT Highlights • In Q2 FY2025, PMT net sales increased 9.9% compared to the prior fiscal year due to higher demand from semi-conductor wafer fab customers. • Experienced growth in RF and microwave components business, as well as the semiconductor wafer fab equipment business • P
Slide 26: 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 27: Canvys Q2 FY2025 Update
Canvys Q2 FY2025 Update Canvys Highlights • In Q2 FY2025, Canvys net sales decreased $0.4 million year-over-year primarily due to lower sales in European markets • Many new programs are underway, and demand is expected to improve in the remainder of FY2025 • Gross margin as a percentage of net sales
Slide 28: A Legacy of Engineered Solutions. A Future of Innovation.
A Legacy of Engineered Solutions. A Future of Innovation. 28