Slide 1: Richardson Electronics Q4 FY2024 Investor Presentation
Richardson Electronics Q4 FY2024 Investor Presentation July 24, 2024 NASDAQ: RELL
Slide 2: 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 3: About Richardson Electronics
About Richardson Electronics 3
Slide 4: Engineered Solutions
ENGINEERED SOLUTIONS Richardson Electronics (NASDAQ: RELL) designs and manufactures nearly 55% 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 5: 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 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: A Legacy of Engineered Solutions, A Future of Innovation
A Legacy of Engineered Solutions A Future of Innovation Ignitrons & Microwave Power Grid Tubes CW Magnetrons Thyratrons Generators Pulse Magnetrons CT Replacement Refurbished CT Custom OEM All-In-One Ultracapacitors Tubes Systems Displays Computer Solutions Investor Presentation | © Richardson Elect
Slide 9: Local Service Supported Through Extensive Network of Over 60 Global Locations
Local Service Supported Through Extensive Network of Over 60 Global Locations FY2024 Sales by Geography Sophisticated Global Infrastructure • More than 60 sales offices & stocking locations • Global field engineering support including over 75 RF, Microwave and CT engineers for leading technology sup
Slide 10: Growth Strategies
Growth Strategies 10
Slide 11: 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 12: 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 13: 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 14: Growth Strategies Align with Large Multi-Year Secular Trends
Growth Strategies Align with Large Multi-Year Secular Trends IRA (Inflation Reduction Act)¹ Growing Wind Generation⁴ • $370 Billion invested in Energy Security and Climate Change (billion kilowatt hours) Programs (electric, solar, battery) over the next ten years. 1,200 • The Inflation Reduction Act
Slide 15: 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 16: 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 17: Business Unit Update
Business Unit Update 17
Slide 18: GES FY2024 Update
GES FY2024 Update GES Highlights • Project based sales and the timing of orders impacted FY2024 year- over-year comparisons • The Company has not lost any opportunities or market share • Second half FY2024 revenues were up over 131% from the first half • Improved sales expected in FY2025 driven by:
Slide 19: 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 20: PMT FY2024 Update
PMT FY2024 Update PMT Highlights • Full year FY2024 was challenged by weaker demand from semiconductor wafer fab customers, which impacted sales by $25.2 million year-over-year • Semiconductor wafer fab demand increased during the fourth quarter of FY2024 driven by higher shipments and bookings • Ex
Slide 21: 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 $35 Richardson Healthcare first launched the Progra
Slide 22: Healthcare FY2024 Update
Healthcare FY2024 Update Healthcare Highlights • In the full year FY2024 sales for both CT tubes and parts improved, driving a 5.7% year-over-year increase in sales • Made significant improvements to the Siemens repair program during the fourth quarter of FY2024. • The repaired Straton Z tubes are i
Slide 23: Canvys Opportunity
Canvys Opportunity Canvys is a global value-added integrator and manufacturer that specializes in creating comprehensive visual technology solutions for OEMs. Canvys is focused on providing small run, Canvys brings together a deep Expertise manufacturing display sizes smart displays for specialized
Slide 24: Canvys FY2024 Update
Canvys FY2024 Update Canvys Highlights • Continued high backlog as new orders received from both existing and first-time customers - although experiencing push out of orders given the economic environment • Gross margin as a percentage of net sales improved to 33.8% in the full year FY2024, compared
Slide 25: Financials
Nasdag RELL oy 7 NasdaqListed ; ! Financials 25
Slide 26: FY2024 Financial Highlights
FY2024 Financial Highlights Net Sales ($ in millions) 5-Year Growth CAGR Growth: 3.3% • As expected, Fiscal 2024 was a difficult year due to challenging $262.7 $196.5 conditions within the semiconductor wafer fab market and program delays across several Green Energy Solutions $196.5 $166.7 opportuni
Slide 27: Q4 FY2024 Balance Sheet and Cash Flow
Q4 FY2024 Balance Sheet and Cash Flow • Strong balance sheet with no debt, and $24.3 million in cash and cash equivalents June 1, May 27, ($s in 000s) 2024 2023 • No borrowings outstanding under $30.0 million revolving line of Cash and Cash $24,263 $24,981 credit Equivalents Accounts • Generated ope
Slide 28: 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 $4.8 million in facility
Slide 29: Backlog
Backlog Total Company Backlog ($ in millions) $250 • Total backlog at the end of Q4 FY2024 was $147.8 million versus $147.7 $200 million at the end of Q3 FY2024, and $59.5 million in FY2019. $150 • GES customer pipeline and number of opportunities continue to increase and demand growth in semiconduc
Slide 30: Health of the Business
Health of the Business • We are more optimistic than ever about the future of Richardson Electronics • We continue to gain market share with new customers, exclusive supplier agreements, new products and our growing list of patents • Much of GES’ business is project-based and timing is not always ea
Slide 31: Appendix: Detailed Company Overview
Appendix Detailed Company Overview 31
Slide 32: Green Energy Solutions (GES)
Green Energy Solutions (“GES”) GREEN ENERGY SOLUTIONS Strategic Business Unit Overview: GES Product and Services Highlights • Newest strategic business unit formed because of our exceptional Battery Modules and growth in demand for green energy applications (sales previously Ultracapacitor Pitch Ene
Slide 33: Power and Microwave Technologies (PMT)
Power and Microwave Technologies (“PMT”) Strategic Business Unit Overview: PMT Product and Services Highlights • The leading distributor of power grid and microwave tubes and related consumable parts (EDG Group) EDG Products • Power and Microwave Group (PMG) brings key semiconductor active and passi
Slide 34: Richardson Healthcare
Richardson Healthcare Strategic Business Unit Overview: Healthcare Product and Services Highlights • Richardson Healthcare helps lower the cost of healthcare delivery with high value parts, upgrades and training solutions for hospitals and third-party service providers CT Tubes Parts • Healthcare ma
Slide 35: Canvys
Canvys Strategic Business Unit Overview: Canvys Product Highlights • Canvys develops custom display and All-In-One computer solutions for Original Equipment Manufacturers (OEMs). We evaluate each customer's unique needs and craft the right solution 5” to 58” Custom Displays • Key capabilities suppor