Rf Industries, Ltd. · NASDAQ:RFIL

Rf Industries — Investor Presentation (March 2019)

29 slides from Rf Industries's investor presentation, Mar 12, 2019

1. Slide 1: Leading Designer and Manufacturer of Interconnect Products

   © RF Industries Ltd. | 1 Leading Designer and Manufacturer of Interconnect Products March 2019 NASDAQ: RFIL

2. Slide 2: Forward-looking statements

   © RF Industries Ltd. | 2 Forward - looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward

3. Slide 3: Executive Team

   © RF Industries Ltd. | 3 Executive Team Mark Turfler Senior Vice President and CFO ▪ Joined: June 2013 Robert Dawson President and CEO ▪ Joined: July 2017 ▪ Added to Board: July 2018 Prior Industry Experience 2014 - 2016 President and CEO, Vision Technology Services 2007 – 2013 TESSCO Technologies,

4. Slide 4: Under new CEO, significant improvement in our results

   © RF Industries Ltd. | 4 Under new CEO, we’ve seen a significant improvement in our results! $22.5 $21.6 $23.0 $50.2 2015 2016 2017 2018 Revenue (in millions) $1.0 ($4.1) $0.4 $5.8 2015 2016 2017 2018 Net Income (in millions)

5. Slide 5: RFIL company overview and statistics

   © RF Industries Ltd. | 5 : RFIL Headquarters San Diego, CA 4 production locations (2 Northeast, 2 Southwest) Corning Gold, ISO 9001: 2008 Certified Founded 1979 IPO 1984 Employees 273 Statistics 3/05/19 Stock Price $6.90 52 Week Low - High $3.10 / $12.75 Avg. Vol. (3 months) 45K Shares Outstanding 9

6. Slide 6: Product lines

   © RF Industries Ltd. | 6 RF Coaxial Connectors RF Coaxial Adapters Low PIM Products Passive Components Coaxial Cable Assemblies Fiber Optic Cable Assemblies FTTA Cable Assemblies Wiring Harnesses

7. Slide 7: Cell tower site materials and DAS

   © RF Industries Ltd. | 7  Cell Tower Site Materials Design, Engineer and Build Hybrid Fiber & Power Cables for 4G and 5G Network Deployment (You can’t buy this stuff “off the shelf”!)  Distributed Antenna System (DAS) Our components are used to provide enhanced wireless coverage in commercial offi

8. Slide 8: Other applications: oilfield, aerospace, transportation

   © RF Industries Ltd. | 8 ▪ Advanced Oilfield Technology ▪ Aerospace Build control wiring for drilling equipment Build & test control stick wiring for flight control stick for military helicopters ▪ Transportation Transit doors and gates - designed for light and heavy rail applications

9. Slide 9: OEM opportunities and market sizes

   © RF Industries Ltd. | 9 OEM opportunities in markets like defense, transportation, agriculture, and oil & gas N.A. Cable Assembly Market = $33.4B ₂ Global Connector Market = $80.4B by 2023 ₁ 5G Build - Out Spend = $130B in 2024 ₃ DAS Market = $8B growing to $18B in 2026 ⁴ 1 Source: Lucintel , Febru

10. Slide 10: Distribution 60% and Direct/OEM 40%

    © RF Industries Ltd. | 10 Distribution – 60% Biggest opportunities are in distribution centric markets (force multiplier) • Access to thousands of customers • No A/R collection issues (99% of sales are in US and Canada) • No inventory obsolescence issues • Focus on what we do best Direct/OEM – 40% •

11. Slide 11: Distribution Partners and OEM Customers

    © RF Industries Ltd. | 11 Distribution Partners OEM Customers

12. Slide 12: Our Value Proposition and Differentiation

    Our Value Proposition and Differentiation Who’s Our Competition? Large Competitors Small Competitors Local/Regional ▪ Fast – Faster lead times than larger competitors ▪ Flexible – Customized product (labor intensive; can’t buy off the shelf) ▪ High Quality – High quality product (ISO 9001 certified;

13. Slide 13: Annual Financial Performance

    © RF Industries Ltd. | 13 Annual Financial Performance $22.5 $21.6 $23.0 $50.2 2015 2016 2017 2018 Revenue (in millions) $0.4 ($4.5) $0.2 $6.0 2015 2016 2017 2018 Income from Continuing Ops. (in millions) - 3% - 4% +6% +118% Year - over - Year Growth Rate 1.8% - 20.8% 0.1% 12.0% Net Margin $0.11 ($0

14. Slide 14: Q1 2019 Financial Performance

    © RF Industries Ltd. | 14 Q1 2019 Financial Performance $4.8 $4.8 $8.0 $10.6 2016 2017 2018 2019 Revenue (in millions) ($354) ($194) $454 $640 2016 2017 2018 2019 Income from Continuing Ops. (in thousands) +1.9% - 0.3% +66.1% +33.6% Year - over - Year Growth Rate - 9.6% - 4.4% 3.8% 6.0% Net Margin (

15. Slide 15: Balance Sheet Supports Growth

    © RF Industries Ltd. | 15 $6.3 $4.3 $5.2 $16.3 $14.0 2015 2016 2017 2018 Q1 2019 Cash Balances (in millions) Balance Sheet Supports Growth $ in millions Oct. 31, 2017 Oct.31, 2018 Jan. 31, 2019 Cash $5.2 $16.3 $14.0 Total Assets $25.1 $32.5 $32.5 Stockholders’ Equity $21.4 $27.8 $28.7 Total Debt $0

16. Slide 16: Organic and inorganic growth strategy

    © RF Industries Ltd. | 16 ▪ Organic ▪ Run rate business ▪ Core fast - turn production ▪ 10 - 15% annual growth ▪ Project business transitioning to long - term relationships ▪ Get our product spec’d in customer projects and included on customer BOMs ▪ Deliver a quality, customized solution where othe

17. Slide 17: C Enterprises acquisition

    © RF Industries Ltd. | 17 C Enterprises – Acquisition announced March 11, 2019  Based in Vista, California ▪ West coast fiber optic manufacturing capabilities ▪ Corning Gold certificate member  2018 unaudited revenues of $8.7M ▪ Expected to be accretive to earnings in fiscal 2019  Brings strong f

18. Slide 18: Building a platform for long term growth

    © RF Industries Ltd. | 18  Building a platform for long term growth  Deliver more consistent and predictable results  3 - year plan to grow to $100 million in sales  Organic growth – low to mid - teens – leveraging distribution and OEM relationships  Inorganic growth – remain committed to addin

19. Slide 19: Our products are everywhere and make lots of things work

    © RF Industries Ltd. | 19  Our products are everywhere and make lots of things work  Recent results have rewarded shareholders with higher stock price plus a long - standing dividend ▪ Revenue growth, margin growth, profit growth  Our new sales model is driving growth  We’re faster and more flex

20. Slide 20: © RF Industries Ltd. | 20 NASDAQ: RFIL

    © RF Industries Ltd. | 20 NASDAQ: RFIL

21. Slide 21: Contact

    © RF Industries Ltd. | 21 RF Industries, Ltd. Mark Turfler SVP/CFO (858) 549 - 6340 rfi@rfindustries.com MKR Group Inc. Todd Kehrli Analyst/Investor Contact (323) 468 - 2300 rfil@mkr - group.com

22. Slide 22: © RF Industries Ltd. | 22

    © RF Industries Ltd. | 22

23. Slide 23: Financial Statement Trends

    Financial Statement Trends through January 31, 2019

24. Slide 24: Income Statement

    Income Statement © RF Industries Ltd. | 24 2019 2018 2017 2016 2015 Q1 Full Year Full Year Full Year Full Year (in millions) Unaudited Audited Audited Audited Audited Net sales 10.6$ 50.2$ 23.0$ 21.6$ 22.5$ Cost of sales 7.5 33.1 16.0 15.3 13.8 Gross profit 3.1 17.1 7.0 6.3 8.7 Operating expenses: E

25. Slide 25: Balance Sheet

    Balance Sheet © RF Industries Ltd. | 25 January 31, 2019 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited Audited ASSETS: Current assets: Cash and cash equivalents 14.0$ 16.3$ 5.2$ 4.3$ 6.3$ Trade accounts receivable, net 5.6 4.3 2.9 2.5 2.9 Inventories 8.2 7.1 5.6 5.4 6.5 Other c

26. Slide 26: Statement of Cash Flows

    Statement of Cash Flows © RF Industries Ltd. | 26 January 31, 2019 2018 2017 2016 2015 (in millions) Unaudited Audited Audited Audited Audited Operating Activities: Consolidated net income (loss) 0.6$ 5.8$ 0.4$ (4.1)$ 1.0$ Net income from discontinued operations - Comnet -$ (0.2)$ 0.2$ 0.4$ 0.6$ Net

27. Slide 27: Income Statement (Quarterly)

    Income Statement (Quarterly) © RF Industries Ltd. | 27 2019 Q1 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD (in millions) Unaudited Audited Audited Net sales 10.6$ 8.0$ 20.5$ 11.8$ 9.9$ 50.2$ 4.8$ 5.3$ 5.9$ 7.0$ 23.0$ Cost of sales 7.5 5.5 12.9 7.8 6.9 33.1 3.3 3.8 4.1 4.8 16.0 Gross profit 3.1 2.5 7.6 4.0 3.0 1

28. Slide 28: Balance Sheet (Quarterly)

    Balance Sheet (Quarterly) © RF Industries Ltd. | 28 2019 Jan. 31 Jan. 31 Apr. 30 Jul. 31 Oct. 31 Jan. 31 Apr. 30 Jul. 31 Oct. 31 (in millions) Unaudited Audited Audited ASSETS: Current assets: Cash and cash equivalents 14.0$ 4.9$ 7.1$ 10.5$ 16.3$ 3.3$ 3.4$ 4.4$ 10.5$ Trade accounts receivable, net 5

29. Slide 29: Statement of Cash Flows (Quarterly)

    Statement of Cash Flows (Quarterly) © RF Industries Ltd. | 29 2019 Q1 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD (in millions) Unaudited Audited Audited Operating Activities: Consolidated net income (loss) 0.6$ 0.5$ 3.2$ 1.7$ 0.4$ 5.8$ (0.2)$ 0.1$ 0.2$ 0.3$ 0.4$ Net income from discontinued operations - Comnet

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