Richardson Electronics, Ltd. · NASDAQ:RELL
Richardson Electronics — Investor Day (August 2023)
39 slides from Richardson Electronics's investor day presentation, Aug 22, 2023
Slide 1: Richardson Electronics Investor Site Visit
Richardson Electronics Investor Site Visit August 22, 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: Agenda
Agenda Welcome—Wendy Diddell FY23 at a Glance—Ed Richardson 9:30 – 10:30 a.m. SBU FY23/FY24—Wendy Diddell and Greg Peloquin 10:30 a.m. – Noon Tour Lunch with Q&A Noon – 1:30 p.m. Wrap Up Investor Presentation | © Richardson Electronics, Ltd. 3
Slide 4: Management Introductions
Management Introductions Edward Richardson, CEO Wendy Diddell, COO Robert (Bob) Ben, CFO Greg Peloquin, EVP and GM, PMT Greg Kinney, SVP, LaFox Operations Dan Erickson, Director, Richardson Healthcare Brian Gumino, New Product Design Engineering Manager John Curran, New Product Design Engineering Ma
Slide 5: Introducing… Vision, Mission and Values
INTRODUCING… VISION To make our world a better, more sustainable place by providing innovative technology solutions. VALUES MISSION • We are a diverse family; we take care of our people. We provide solutions that improve our • We focus on long term viability for our world through innovative engineer
Slide 6: 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 7: 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 as $300,000 a % of Total Sales $11,432 $250,000 $39,331 $11,377 18.1% $200,000 $35,187 $47,596 $10,338 $22,611 $150,000 $29,319 FY2022 GES Sales Mix as $100,000 a % of Total S
Slide 8: Health of the Business-FY24
Health of the Business-FY24 • Following long-term strategy focused on diversifying sales to high-growth, high-margin opportunities supported by large, fast growing niche markets and applications o Growing diversity of sales by product, application, and geography since the pandemic will help offset t
Slide 9: Strategic Business Unit Update
Strategic Business Unit Update FY23 Highlights and FY24 Initiatives Power & Microwave Green Energy Solutions Healthcare Canvys Technology (PMT) (GES) Investor Presentation | © Richardson Electronics, Ltd. 9
Slide 10: Healthcare FY23 Highlights
Healthcare FY23 Highlights • Sales are flat compared to prior year, but net loss reduced to $3 million versus $5.5 million in FY22 • Ongoing sales of CT parts, tubes and systems—primarily Canon • Margin improved • SG&A below prior year • Launched the Straton Z, the first in the Siemens repaired tube
Slide 11: Healthcare FY24 Initiatives
Healthcare FY24 Initiatives • Achieve break-even point by Q4, FY24 • Increase sales of Canon parts, tubes and systems • P3 Programs • Capped Spend Programs • Generate Sales of Straton Z • Launch of repaired Siemens MX, MXP and MXP 46 end of CY2023 • Maintain full production with reduced scrap to imp
Slide 12: Canvys FY23 Highlights
Canvys FY23 Highlights • Canvys Q4 revenue grew by 11.8% in FY23 • SG&A lower than budgeted • Very solid Backlog of almost $47 million! • Many new blue chip customer wins Investor Presentation | © Richardson Electronics, Ltd. 12
Slide 13: Canvys FY24 Initiatives
Canvys FY24 Initiatives • Promote brand through Newsletters, Press Releases, Social Media Posts, and tweaking Google-Ads to efficiently build Online Awareness • Increase travel activities / trade show participation • Focus on targeting new customers and projects to lay the groundwork for future busi
Slide 14: Investor Presentation | © Richardson Electronics, Ltd.
Investor Presentation | © Richardson Electronics, Ltd. 14
Slide 15: Launch of Green Energy Solutions (GES)
Launch of Green Energy Solutions (GES) • In Q1 FY23, we launched GES to give both PMT and GES more focus to make key decisions on investments and opportunities. • This created two new SBUs with more focus on key opportunities for growth. • PMT – focuses on RF & Microwave applications, products, cust
Slide 16: Power & Microwave Technologies (PMT)
Power & Microwave Technologies (PMT) • RF & Microwave • Applications • Industrial RF • Broadcast • Cellular • Satcom • Radar • Communications • Products • SiRF Matching Networks (LAM) • RF / Microwave Transistors, ICs and amplifiers • RF & Microwave Tubes • Microwave Components • Microwave Generator
Slide 17: Power & Microwave Technologies (PMT)
Power & Microwave Technologies (PMT) • RF & Microwave (continued) • Technology • Electron Devices • Semiconductor technologies • GaN • SiC • SiGe • CMOS • GaAs • Technology Partners • Thales • CPI • Qorvo • MACOM • Anokiwave Investor Presentation | © Richardson Electronics, Ltd. 17
Slide 18: PMT FY23 Highlights
PMT FY23 Highlights • PMT sales grew 5.7% in FY23 to $164.3M • Improved profitability with topline growth • Continued to add new technology partners • Continued to grow market share by adding new customers and increasing market share with existing customers and new applications Investor Presentation
Slide 19: PMT FY24 Initiatives
PMT FY24 Initiatives • Continue to focus on niche RF & Microwave applications • Continue to develop portfolio of key technology partners with disruptive technology • Continue to increase market share at key customers and key markets such as Semi-Wafer Fab, SATCOM, and 5G infrastructure • Continue de
Slide 20: Green Energy Solutions (GES)
Green Energy Solutions (GES) • Green Energy Solutions • Power Management Applications • Green Energy Customers/Applications • Applications • Wind Turbines • Solar • EV Locomotives • Electric Vehicles • EV Chargers • Inverters • Products • ULTRA3000® • ULTRAUPS • ULTRAPEM Multi-Brand • ULTRAGEN3000 -
Slide 21: Green Energy Solutions (GES)
Green Energy Solutions (GES) • Green Energy Solutions (continued) • Technology • Ultracapacitors & modules • LiFePO4 batteries and systems • IGBTs • SiC • GaN • Technology Partners • LS Materials • AMOGREENTECH • VINATech • Navitas • Fuji Semiconductor Investor Presentation | © Richardson Electronic
Slide 22: GES FY23 Highlights
GES FY23 Highlights • GES sales grew 110% in FY23 to $47.6M • Improved profitability with topline growth each quarter • Continued to add new technology partners • Continued designing and developing new products and developed very successful new product introduction (NPI) program • Used unique model
Slide 23: GES FY23 Highlights—Press Releases
GES FY23 Highlights—Press Releases • Richardson Electronics, Ltd. Announces New Patent Pending Shunt Resistor Accessory For ULTRA3000® • Richardson Electronics, Ltd. Announces New ULTRAPEM™ Pitch Energy Module Series of Pitch Energy Modules for Wind Turbines • Richardson Electronics, Ltd. Participat
Slide 24: GES FY24 Initiatives
GES FY24 Initiatives • Continue to gain ULTRA3000® market share with over 40,000 units in the field • Expedite the launch of new products • Continue to increase market share at current customers and in key markets • Continue to identify key markets and niche applications with new products • Improve
Slide 25: PMT/GES Product Showcase
PMT/GES Product Showcase Investor Presentation | © Richardson Electronics, Ltd. 25
Slide 26: ULTRA3000
ULTRA3000® Features Benefits • Multiple Patents • Improved turbine reliability • Form, fit, and function • Reduced operation & installation maintenance cost • Over 2M hours in proven field • Eliminates hazardous lead acid installation batteries • Designed, manufactured, and • Lifetime of 15 years su
Slide 27: ULTRAPEM - Multi-Brand Pitch Energy Module
ULTRAPEM - Multi-Brand Pitch Energy Module Features Benefits • Drop-in replacement for high • Improved turbine reliability voltage pitch systems • Reduced operation & • Compatible with: maintenance cost • Suzlon • Eliminates hazardous lead acid • Senvion batteries • SSB • Lifetime of 15 years • Nord
Slide 28: ULTRAUPS3000
ULTRAUPS3000 Features Benefits • Patent-Pending • 100% power conversion – no • Ultracapacitor based UPS for switching time industrial and IT applications • True low voltage ride through so • Form, fit, and function installation turbine will not have to be shut down • 1 million charge/discharge cycle
Slide 29: Voltage Reduction Tool (VRT)
Voltage Reduction Tool (VRT) Features Benefits • Patent-Pending • Designed for working safely in • Fast Discharge of Ultracapacitor modules cabinets containing stored energy using ultracapacitors • Measures ESR/Life of ultracapacitors • Resolved NextEra's issues with • Needed to comply with NFPA 70E
Slide 30: Pitch Energy Module Shunt
Pitch Energy Module Shunt Features Benefits • Patent-Pending • Increases market share at • Robust Drop-In Replacement for GE current customers. Style Shunts • Solves long term issues • Greater thermal Mass for increased • Works with batteries or current and heat dissipation ultracapacitor systems •
Slide 31: ULTRAGEN3000
ULTRAGEN3000 Features Benefits • Patent-Pending • Eliminates hazardous lead acid • Drop-in replacement for lead batteries acid batteries • Jump start compatible • Remote monitoring capabilities • Lifetime of 15 years • No hazardous chemicals Key Customers Market Applications • Verizon • Wireless Inf
Slide 32: Hybrid Starter Modules
Hybrid Starter Modules Features Benefits • Ultracapacitor technology • Can be used in electric & diesel • Replaces lead-acid batteries locomotives Key Customers Market Applications • Large diesel and electric • Electric & diesel locomotives locomotive manufacturers Investor Presentation | © Richards
Slide 33: Electric Locomotives
Electric Locomotives Features Benefits • Replaces Diesel Electric • 100% power conversion Engine by purely electric • 100% zero emissions • Dynamic Braking • Saving fuel and reducing (Regenerative) emissions (decarbonization • 2.4MWh & 14MWh energy efforts) • Silent and less maintenance Key Customer
Slide 34: YJ1600
YJ1600 Features Benefits • High Efficiency • Long operating life • Compact size and light weight • Accurate output power control & stabilization • Quick start • Integrated magnet structure • Easy power controlling eliminating costly additional components Key Customers Market Applications • Carbon Cr
Slide 35: SiRF (Single-Ended RF Matching Network)
SiRF (Single-Ended RF Matching Network) Features Benefits • Mixes 13.56 MHz and 400 kHz • Configurable Designs for different power levels • Both static and dynamic operation • Starting to build motorized • Allows the customer to strike a dynamic systems constant plasma on their tool to clean out the
Slide 36: Group Tours
Group Tours Investor Presentation | © Richardson Electronics, Ltd. 36
Slide 37: Lunch and Q&A
Lunch and Q&A Investor Presentation | © Richardson Electronics, Ltd. 37
Slide 38: Final Thoughts
Final Thoughts • We continue to gain market share with new customers, exclusive supplier agreements, new products and our growing list of patents. • We are more optimistic than ever about the future of Richardson Electronics, as a result of the success of our product and geographic growth strategies
Slide 39: Thank You for Your Investment
Thank You for Your Investment A Legacy of Engineered Solutions. A Future of Innovation. 39