Richardson Electronics, Ltd. · NASDAQ:RELL
Richardson Electronics — Q4 FY2023 Earnings Presentation
28 slides from Richardson Electronics's earnings presentation, Jul 19, 2023
Slide 1: Fourth Quarter Fiscal Year 2023 Investor Presentation
Richardson Electronics Fourth Quarter Fiscal Year 2023 Investor Presentation July 19, 2023 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: Engineered Solutions
ENGINEERED SOLUTIONS Richardson Electronics (NASDAQ: RELL) designs and manufactures nearly 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 on
Slide 4: Key Facts & Figures
Key Facts & Figures FY2023 Sales: FY2023 Net Income: $262.7 million $1.55 per diluted share (+16.9% YoY) (vs. $1.31 in FY2022) Strong Balance Sheet: Certified Experts FY2023 Q4 cash and ISO 9001:2015 cash equivalents of ISO 13485: 2016 $25.0 million and Certified no debt 480+ Employees Global Custom
Slide 5: Our Business Units
Our Business Units 5 Power & Microwave Green Energy Solutions Healthcare Canvys Technology (PMT) (GES) o FY2023 Revenue: $164.3 million o FY2023 Revenue: $47.6 million o FY2023 Revenue: $11.4 million o FY2023 Revenue: $39.3 million o Power grid and microwave o Designs and manufactures key o CT and M
Slide 6: 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 7: Local Service Supported Through Extensive Network of Over 60 Global Locations
Local Service Supported Through Extensive Network of Over 60 Global Locations FY2023 Full Year 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 tech
Slide 8: 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 9: 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 10: GES Product Roadmap Supports Large, Fast-Growing, and Global Opportunities
GES Product Roadmap Supports Large, Fast-Growing, and Global Opportunities 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 Materials For EV-Electric Sy
Slide 11: Unique Relationships with Technology Partners Deepens Customers Relationships
Unique Relationships with Technology Partners Deepens Customers Relationships Technology Engineered End Partners Solutions Customers Strong relationships with global technology partners expands Richardson Electronics’ sales and deepens customer relationships from components to Engineered Solutions I
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: Successful GES Strategy has Accelerated Sales Growth
Successful GES Strategy has Accelerated Sales Growth Components of Full Fiscal Year Sales Growth (000s) FY2023 GES Sales Mix $300,000 $250,000 18.1% $200,000 $47,596 $22,611 $150,000 FY2022 GES Sales Mix $100,000 $50,000 10.1% $- FY2021 FY2022 FY2023 PMT GES Canvys Healthcare Investor Presentation |
Slide 15: 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 16: PMT Update
PMT Update PMT Highlights • Added new technology partners, expanding our ability to supply, support, and create new opportunities • Power & Microwave Group (PMG) continues to have excellent sales growth related to the RF/wireless infrastructure business • High growth in demand for Electron Device Gr
Slide 17: Healthcare Growth Opportunity
Healthcare Growth 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 $35 Richardson Healthcare first launched the
Slide 18: Healthcare Update
Healthcare Update Healthcare Highlights • Full year gross margins improved to 30.7% from 21.2% last year, due to productions variances stemming from enhanced operations and lower scrap costs. • Tube reloading in Brazil and in the Americas creates new opportunities for Richardson Healthcare. • The St
Slide 19: Canvys Opportunity
Canvys Opportunity Canvys is a global value-added integrator and manufacturer that specializes in creating comprehensive visual technology solutions for OEMs. Canvys is focused on providing small run, Canvys brings together a deep Expertise manufacturing display sizes smart displays for specialized
Slide 20: Canvys Update
Canvys Update Canvys Highlights • Demand for blue-chip medical and industrial OEM systems driving growth • The 11.8% year-over-year increase was due to an increased demand globally, and the continued addition of new customers and programs • A number of projects in the engineering stage, well positio
Slide 21: Financial Results
Financial Results Total Annual Sales ($ in thousands) $300,000 $250,000 • Net sales for full year FY2023 increased to $262.7 million, up 16.9% compared to net $200,000 sales of $224.6 million in the same period last $150,000 year, due to positive year-over-year growth in each of the business segment
Slide 22: FY2023 Q4 Balance Sheet and Cash Flow
FY2023 Q4 Balance Sheet and Cash Flow May 27, May 28, • Strong balance sheet with no debt, and $25.0 million in cash and ($s in 000s) 2023 2022 cash equivalents Cash and Cash Equivalents and $24,981 $40,495 • Allocated $3.3 million of capital in FY2023 to support the Investments company’s regular ca
Slide 23: Outlook
Outlook Total Company Backlog ($ in millions) $250 $200 • Total backlog at the end of FY2023 was $160.4 million versus and $206.2 million at the end of FY2022, and $59.5 million in FY2019 pre- $150 pandemic. • Backlog has leveled off from historic $100 post-pandemic highs. $50 $- FY2019 FY2020 FY202
Slide 24: Appendix: Detailed Company Overview
A Legacy of Engineered Solutions. A Future of Innovation. Appendix Detailed Company Overview 24
Slide 25: 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 growth in demand for green energy applications (sales previously including in PMT segment) Battery Modules an
Slide 26: 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 27: 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 28: 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
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