30 slides from Richardson Electronics's shareholder meeting presentation, Oct 4, 2022
Slide 1: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS October 4, 2022 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: Agenda
Agenda • Introductions: Edward J Richardson • Formal Proceedings: Robert Ben • Company Overview: Edward J. Richardson • FY22 Financials: Robert Ben • Power & Microwave Technologies: Greg Peloquin • Canvys: Jens Ruppert • Richardson Healthcare: Wendy Diddell • Q&A: Edward J. Richardson
Slide 4: Introductions
Introductions • Board of Directors • Edward J. Richardson, Chairman of the Board, Chief Executive Officer & President • Paul J. Plante, Owner, Florida Fresh Vending; former President and CEO of Reptron • Jacques Belin, Retired Managing Director of Thales Components and Subsystems • James Benham, Tec
Slide 5: Formal Proceedings
Formal Proceedings Robert Ben EVP and Chief Financial Officer
Slide 6: Company Overview
Company Overview Edward J. Richardson Chairman of the Board, Chief Executive Officer
Slide 7: Engineered Solutions
ENGINEERED SOLUTIONS Richardson Electronics (Nasdaq: RELL) designs and manufactures more than 60% 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
Slide 8: Key Facts & Figures
Key Facts & Figures FY2022 Sales: FY2022 Net Income: $224.6 million $1.31 per diluted share (up 26.9% YoY) (vs. $0.13 in FY2021) Strong Balance Sheet: Certified Experts Q1 FY2023 cash and ISO 9001:2015 investments of ISO 13485: 2016 $35.6 million and Certified no debt 460+ Employees Global Customers
Slide 9: Our Business Units
Our Business Units Power & Microwave Green Energy Solutions Healthcare Canvys Technology (PMT) (GES) o TTM Revenue: $160.4 million o TTM Revenue: $28.5 million o TTM Revenue: $12.4 million o TTM Revenue: $37.2 million o Power grid and microwave o Designs and manufactures key o CT and MRI replacement
Slide 10: Local Service Supported Through Extensive Network of Over 60 Global Locations
Local Service Supported Through Extensive Network of Over 60 Global Locations FY22 Sales by Geography Sophisticated Global Infrastructure • More than 60 sales offices & stocking locations • Global field engineering support including 75 RF and Microwave and CT engineers for leading technology supplie
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: Fiscal Year 2022 Financial Results
Fiscal Year 2022 Financial Results Robert Ben EVP and Chief Financial Officer
Slide 13: FY 2022 Results
FY 2022 Results (in thousands) Richardson Electronics, Ltd. Annual Shareholder Meeting (in thousands, except per share amounts) FY2022 FY2021 Fav/Unfav Net sales $ 224,620 $ 176,937 $ 47,683 Cost of sales 152,920 118,112 (34,808) Gross margin 71,700 58,825 12,875 Gross margin % 31.9% 33.2% SG&A expe
Slide 14: FY 2022 Balance Sheet
FY 2022 Balance Sheet (in thousands) FY22 FY22 FY22 FY22 FY21 FY20 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 4th Qtr Cash & Investments: Cash $ 35,495 $ 39,147 $ 39,665 $ 36,418 $ 43,316 $ 30,535 ST investments 5,000 - - - - 16,000 LT investments - - - - - - Total $ 40,495 $ 39,147 $ 39,665 $ 36,418 $
Slide 15: FY 2022 Cash Flow
FY 2022 Cash Flow *Total Cash and Investments
Slide 16: PMT/Green Energy Solutions
PMT/Green Energy Solutions Greg Peloquin, EVP and General Manager
Slide 17: PMT Strategy – Solving Our Customer and Technology Partners Problems
PMT Strategy – Solving Our Customer and Technology Partners Problems • Focus on technology partnerships with leaders in electron devices, power semiconductors, and RF/Microwave components and systems. • Global relationship and capabilities to bring those products to market and to support those produ
Slide 18: FY22 Highlights
FY22 Highlights • Improved profitability with top line growth through new technology partners and market share gains in key growth areas • Signed new technology partners that fill technology gaps in our capabilities • Investments in engineering, manufacturing, and test for high growth markets. • Int
Slide 19: PMT FY23 Key Initiatives
PMT FY23 Key Initiatives • Hard launch on our new technologies in Green Energy, Power Management, and RF/Microwave, supporting our top line growth initiatives. • Capitalize on our existing infrastructure ULTRA3000® UltraGEN3000TM • Realize revenue gains from new suppliers, customers, and new product
Slide 20: PMT FY23 Key Initiatives
PMT FY23 Key Initiatives • Grow and monitor market share in our power grid and microwave tube business • Protect this strength and profitable business through continual contact ULTRA3000® UltraGEN3000TM • Focus on margin improvement • Look at ways to be more efficient and cost effective • Manage cos
Slide 21: Canvys
Canvys Jens Ruppert, EVP and General Manager
Slide 22: Canvys Strategy
Canvys Strategy • Understand the visual technology needs of Original Equipment Manufacturers and other customers and deliver solutions that exceed their expectations. • Serve unique markets, including the medical device, public transportation and industrial markets, with very high quality and strict
Slide 23: Canvys FY22 Highlights
Canvys FY22 Highlights • Generated direct operating contribution. • Double digit YoY growth despite the COVID-19 pandemic. • Won several important deals in the medical, industrial and transportation markets that are the foundation for growth in FY23 and beyond. • Backlog grew to more than $50M by fi
Slide 24: Canvys FY23 Key Initiatives
Canvys FY23 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
Slide 25: Richardson Healthcare
Richardson Healthcare Wendy Diddell, EVP, Chief Operating Officer and General Manager
Slide 26: Healthcare Strategy
Healthcare Strategy • Richardson is the first global non-OEM provider of Diagnostic Imaging replacement parts, training and support solutions • We differentiate ourselves from other replacement parts providers by offering high value solutions • Third party and CPO replacement CT tubes • P3 capitated
Slide 27: Healthcare FY22 Highlights
Healthcare FY22 Highlights • Full year sales of $11.4M 10% above prior year sales of $10.3M • Parts/P3 sales on plan and 21.3% above prior year; new parts high for the year • Equipment sales availability remained constrained • Tube sales were 7.2% higher than previous; no G tubes for sale • Europe s
Slide 28: Healthcare FY23 Key Initiatives
Healthcare FY23 Key Initiatives • Grow Sales • Double the number ALTA tubes sold • Achieve moderate increases in Parts and Equipment sales • Improve Gross Margin • Maintain sufficient production levels through improved processes • Reduce scrap through improved processes, quality control • Maintain S
Slide 29: Questions and Discussion
Questions and Discussion Edward J. Richardson
Slide 30: A Legacy of Engineered Solutions. A Future of Innovation.
A Legacy of Engineered Solutions. A Future of Innovation. 30