October 4, 2016
ANNUAL MEETING OF
STOCKHOLDERS
Safe Harbor Statement
During the course of this presentation, the Company may make
certain "forward-looking" statements as defined by the SEC.
Such statements regarding the Company's business which are
not historical facts represent "forward-looking statements" that
involve risks and uncertainties. Actual results could differ
materially from those contained in the forward-looking
statements due to risks and uncertainties contained under "Risk
Factors" in the Company's Annual Report on Form 10-K. The
Company assumes no responsibility to update the forward-
looking statements as a result of new information, future events,
or otherwise.
2
Agenda
• Introductions: Edward J Richardson
• Formal Proceedings: Bill Seils
• Company Overview: Edward J. Richardson
• FY16 Financials: Robert Ben
• Power & Microwave Technologies: Greg Peloquin
• Richardson Healthcare: Pat Fitzgerald
• Canvys: Jens Ruppert
• Q&A: Edward J. Richardson
3
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, Technical Consultant, Night Vision and
Microwave Device Industry; Retired President of L-3
Communications/Electron Device Division
• Kenneth Halverson, Consultant, Halverson Consulting, LLC;
former President of Comdisco Healthcare
4
Introductions
• Independent Auditors
• Giovanni Bernardi of BDO
• REL Management Team
• Robert Ben, EVP and Chief Financial Officer
• Wendy Diddell, EVP Chief Operating Officer
• Pat Fitzgerald, EVP Richardson Healthcare
• Greg Peloquin, EVP Power & Microwave Technologies Group
• Jens Ruppert, EVP Canvys
5
Formal Proceedings
Bill Seils
Former General Counsel
Richardson Electronics
Company Overview
Edward J. Richardson
Chairman of the Board, Chief Executive Officer & President
We provide power, microwave, and imaging components to industries worldwide.
The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based
on our core engineering and manufacturing capabilities. Richardson Electronics provides solutions and
adds value through design-in support, system integration, prototype design and manufacturing, testing,
logistics, and aftermarket technical service and repair through its global infrastructure.
ENGINEERED SOLUTIONS
• Headquarters: La Fox, Illinois (near
Chicago)
• NASDAQ: RELL
• Web Site: www.rell.com
• FY2016 Sales: $142 million
– PMT: $105.5 million
– Canvys: $23.5 million
– Healthcare: $13 million
• Strong Balance Sheet: $70.5 million
in cash and investments
• Employees: 375+; more than half in
sales, engineering and product
management
• Customer base: 20,000 customers
• Certifications: ISO9001:2008 and
ISO13485
Founded in 1947, Richardson Electronics, Ltd. has a rich and unique history
of engineering, manufacturing and distributing power grid and microwave
tubes and related consumables, and customized display solutions.
• Locations: Global network of 40+
sales offices and stocking locations
with legal entities in 24 countries
• Share Repurchases and Dividends
since March 2011: $82 million
• Acquisitions since March 2011: $20
million
Facts and Figures
Corporate Objectives
• Realize year over year double digit growth through
investments in high growth markets:
• Healthcare
• Power Management
• Protect our existing electron device business and market
share through continued strong sales, marketing and
engineering support
• Return the Company to profitability by the end of FY17
10
Our highest return on investment will be achieved by leveraging
the power of our global infrastructure and capitalizing on the
strength of our customer relationships.”
— Edward J. Richardson, Chairman, CEO
Our Challenges
• Instability in the world markets
• Euro devaluation
• Brexit
• China
• Latin America
• US election
• The complexity of our business relative to the size of the business
• Global structure is required to service our core business
• Will be an asset as we expand in new power management and healthcare markets
• Power grid tube market declining at an average rate of 5% per year
• Some offset from price increases
• Still opportunity to take market share
• Time for key initiatives to take hold and generate significant revenue growth
11
Our Path Forward
• The power grid tube business remains a key element of our business—it is
healthy and provides the cash to cover our fixed expense.
• We are counting on REL Healthcare to change the perception of the
company—having a reliable CT tube supply is critical to this success!
• We will work hard to conserve cash to ensure we continue to invest in our
growth initiatives.
• We will consider acquisitions when they make good business sense
• Do they contribute to our objectives?
• Are they priced right (we don’t pay high multiples)?
• Is the management team solid and a good cultural fit (all we are really buying is people
and their relationships)?
• We will look for ways to improve operational efficiency
• We will carefully control inventory purchases
• Capital expenditures will be primarily related to establishing CT manufacturing and
the expansion of healthcare
• We will continue to look at share repurchases opportunistically
12
FY16 Financials
Robert Ben
FISCAL 2016 RESULTS
14
FY2016
Actual
FY2015
Reported
Net sales 142,016$ 136,957$
Cost of sales 97,181 95,819
Gross margin 44,835 41,138
gross margin % 31.6% 30.0%
SG&A expenses 51,632 49,229
% of net sales 36.4% 35.9%
Gain on disposal of assets (244) (5)
Operating income (loss) (6,553) (8,086)
% of net sales -4.6% -5.9%
Investment/interest income (562) (999)
Foreign exchange (gain) loss 212 (185)
Other, net 17 92
Total other income (333) (1,092)
Income (loss) from continuing before taxes (6,220) (6,994)
Income tax provision (benefit) 546 (1,466)
Income (loss) from continuing operations (6,766)$ (5,528)$
% of net sales -4.8% -4.0%
Income (loss) from discontinued operations - (31)
Net income (loss) (6,766)$ (5,559)$
FISCAL 2016 BALANCE SHEET
15
FY 2015
May 28, Feb 27, Nov 28, Aug 29, May 30,
2016 2016 2015 2015 2015
Cash & Investments:
Cash 60,454$ 60,205$ 67,863$ 68,426$ 74,535$
ST investments 2,268 3,537 3,719 6,342 23,692
LT investments 7,799 7,772 7,897 10,511 11,549
70,521$ 71,514$ 79,479$ 85,279$ 109,776$
Working Capital:
Accounts Receivable 24,928$ 20,881$ 21,041$ 23,989$ 20,753$
Inventories 45,422 45,533 43,126 41,188 38,769
Accounts Payable (14,896) (12,732) (13,583) (14,293) (15,768)
Working Capital 55,454$ 53,682$ 50,584$ 50,884$ 43,754$
FY 2016
FISCAL 2016 CASH POSITION
109,776
70,521
(13,584 )
(12,209 )
(4,813)
(5,015 )(3,079) (766)
0
20,000
40,000
60,000
80,000
100,000
120,000
BeginningCash
YTD OperCash Use IMES
CapitalExpenditures
StockRepurchase Dividends FX Effects Ending Cash
tho
us
an
ds
Strategic Business Unit Overview
Power & Microwave Technologies
Greg Peloquin
PMT Strategy – Solving customer problems
19
• 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 products through engineering, design, and
logistics support.
• Growth is in the RF, Power, and Microwave niche markets – we
differentiate ourselves in attacking these markets through:
• Global infrastructure
• Demand creation – field engineering
• Niche products and markets
• Disruptive technology and legacy products
• Existing strong customer and supplier relationships
• Focus on bringing new products and technologies while maximizing
our market share with legacy products to support our global customers
and suppliers problems.
FY16 Highlights
20
• Successfully launched our new technologies business unit. • Added 20 new suppliers
• Technologies covered: GaN, MOSFETS, SiGe, Ultra-capacitors, IGBTs
• Expanded our customer base
• Major prototype orders received from key customer programs which should accelerate revenue growth in the second half of FY17.
• Added key suppliers for EDG which allowed us to increase market share• Photonis TWTs
• Expansion of MPD agreement
• Expanded the laser consumables product line—bellows
• Capitalized on the Covimag acquisition with major government order in Q4.
• Backlog grew with book to bill ratio consistently over 1 overall and even greater in the new technologies business.
PMT FY17 Key Initiatives
21
• Grow and monitor market share in our power grid and microwave tube business.
• Protect this strength and profitable business through continual contact.
• Focus on margin improvement.
• Look for new tube opportunities/applications.
• Launch hard our new technologies supporting our top line growth initiatives.
• Capitalize on our existing infrastructure.
• Realize revenue gains from suppliers added in FY16.
• Realize increased revenue from design wins to improve margin.
• Increase opportunities and expand customer base for our engineering solutions
capabilities.
• Fully load the factory.
• Focus on cost reduction and margin improvement for manufactured items.
• Develop REL products with broad customer appeal.
• Manage cost in line with improved profitability objectives.
• Capitalize on our existing infrastructure.
• Eliminate redundancies and poor performers.
• Maximize use of cash by carefully controlling expenses and inventory purchases.
Richardson Healthcare
Pat Fitzgerald
Healthcare Strategy
• Richardson is the first truly global non-OEM provider of
Diagnostic Imaging parts, training and support solutions
• Growth in the parts space is focused on both
geographic and product line expansion
• We differentiate ourselves from other providers
by offering high value solutions like:
• Replacement tubes and depot repairs
• Customs cleared parts in days not weeks
• Best in class training and support programs
• Significant savings compared to OEMs
• We continue to distribute high value upgrade components like
PACS displays and portable DR systems that also help hospitals
lower the cost of healthcare delivery
23
Healthcare FY16 Highlights
• Acquired and Integrated IMES
• Leveraged Richardson Global Logistics
to expand International Sales
• Established European Parts & Training Footprint
• Began IMES Product Line Expansion with Philips CT
and Siemens CT Parts
• Shipped first Richardson Certified and Repaired
CT Tubes
• Strong RHC Presence at RSNA, and Launch of the
Healthcare Business in Europe at ECR
24
Healthcare FY17 Key Initiatives
• Launch Refurbished CT Tubes and Prepare
Factory for New Tube Production in FY18
• Development IMES European Business
• Continue IMES Product Line Expansion
• Philips and Siemens CT
• Toshiba Prime CT
• Toshiba MRI Parts
• MRI Coils and Cold Heads
• Grow PACS Display Business with Focus
on Compliance and Conformance
25
Canvys
Jens Ruppert
Canvys Strategy
27
• We are committed to understanding the visual technology
needs of Original Equipment Manufacturers and other
customers, and to deliver solutions that exceed their
expectations.
• We are serving unique markets with very high quality and
strict product-life-cycle requirements including the
medical device, public transportation and industrial
markets.
• Our engineering and sourcing experience combined with
our global infrastructure enables us to provide innovative
and competitively-priced solutions for small to mid sized
volume opportunities.
Canvys FY16 Highlights
28
• Won several good volume projects including:
• HOMAG (Dürr Group)
• Karl Storz
• Medtronic
• T-Systems
• Weak Euro continued to reduce European sales in USD; weak Euro also
had a negative impact on margin (buy in USD and sell in Euro)
• OEM customers applying constant price pressure
• Suppliers targeting direct business; important to develop own
intellectual property to create differentiators
• Invested in new technologies:
• 4K, Ultra-High-Definition displays
• HDBaseT, connectivity standard for transmission of uncompressed ultra-high-
definition video, audio, power, Ethernet, USB, and control signals, over a common
category (Cat5e) cable.
Canvys FY17 Key Initiatives
29
• Continue to focus on new customer acquisition without
losing sight of existing customers and programs
• Make significant cost reductions to offset current
softness in US market
• Continue to pursue new technologies and other means
of differentiating products.
• Currently reviewing the business model and strategy for
Canvys with the objective to make Canvys a significant
contributor to operating profit
Questions and Discussion
Edward J. Richardson
Thank You
Thank You