Slides
Page 1
Richardson Electronics Q1 FY2027 Investor Presentation October 8, 2026 NASDAQ: RELL
Page 2
We provide solutions that improve our world through innovative engineering and manufacturing in collaboration with our employees, customers and technology partners. MISSION To make our world a better, more sustainable place by providing innovative technology solutions. VISION • We are a diverse family; we take care of our people. • We focus on long term viability for our company, our community and our world. • Every interaction is important and deserving of respect. • We believe in hard work, reward, and the determination to succeed. VALUES
Page 3
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 discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K. The Company assumes no responsibility to update the “forward-looking” statements in this overview three- and twelve-month new information, future events, or otherwise. Note on financial presentation: The consolidated financial results included in this presentation are as reported for the three months ended August 29, 2026.
Page 4
About Richardson Electronics
Page 5
ENGINEERED SOLUTIONS Richardson Electronics (NASDAQ: RELL) designs and manufactures more than 55% of the products it sells for power, microwave, and imaging solutions to industries worldwide. Technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities Value added solutions through design- in support, system integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair Global infrastructure and support to serve customers wherever they are located
Page 6
Strong balance sheet with robust cash and cash equivalents and no debt RELL is global with 60+ locations worldwide including three strategic warehouse locations and legal entities in 24 countries Headquarters in LaFox, Illinois, co-located with US-based manufacturing facility More than 20,000 OEM and end-user customers throughout the world 430+ employees with over half in sales, engineering and product management Certified experts that are ISO 9001:2015 and ISO 13485:2016 certified Key Facts & Figures
Page 7
Our Business Units Green Energy Solutions (GES) CanvysPower & Microwave Technology (PMT) o FY2026 Revenue: $37.3M (+12.4% YoY) o Custom display solutions for healthcare, industrial, retail and transportation applications o All-in-one computer display solutions o Engineering design and support o FY2026 Revenue: $160.5M (+9.1% YoY) o Power grid and microwave tubes (EDG) o Power management for 5G (PMG; started in 2014) o In-house manufacturing and partnering with leading technology suppliers o Global engineering and design support o Key supplier to the semiconductor industry o FY2026 Revenue: $30.8M (+7.3% YoY) o Designs and manufactures key products for the fast-growing energy storage market and power management applications o Leverages existing global infrastructure and expertise o Products for numerous green energy applications such as wind, solar, hydrogen, EVs, and synthetic diamonds
Page 8
Growth Strategies
Page 9
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 Strategy focused on leveraging core engineering and manufacturing capabilities to expand product lines into large, fast growing global markets Growth supported by strong core business, 75+ years of engineering capabilities, and global platform Global footprint supports customers and maintains strong strategic partnerships with leading manufacturers New markets and applications support significant expansion to the Company’s growth opportunities
Page 10
Power Management Roadmap Long-standing relationships with leading components manufacturers combined with our in-house manufacturing and engineering capabilities supports a multi-year strategy aimed at providing higher value sales Services Technology Partners System Energy Storage System (ESS) Modules Engineered Solutions Phase I Phase II Phase III
Page 11
Other Mid-Term Solutions Four key applications across Power Management (PMT) and Green Energy Solutions (GES) Transportation Industrial Energy Storage Wind/Solar Key Products Key Products Key Products Key Products • Metra Emergency Lighting • Engine Start Module • SiC MOSFETs • LiFePO4 Battery Modules • Ultracapacitor AGV Modules • PCIGBT Modules • Magnetrons used in diamond manufacturing; AI applications • C&I BESS • Utility BESS • Data Center BESS • Pitcher Energy Modules • Turbine-Guard • Inverter Modules
Page 12
FY2026-2028 Wind Turbine Opportunity Customer Problem: Wind turbine manufacturers and operators needed an environmentally friendly solution to extend the life of auxiliary power supplies for their Pitch Energy Modules. Richardson Electronics’ Solutions: Developed the first ultracapacitor-based plug-and-play replacement for batteries within wind turbine pitch systems. Since launching, the Company has sold approximately $47.4 million in wind modules. OEM Turbine Platforms Today RELL can expand its market share in the US and throughout the rest of the world with the Patented ULTRA3000® and the ULTRAPEM® both with GE Turbines as well as other OEM Turbines. U.S. $237M Latin America $35M Canada $20M Europe $150M Australia $12M Total $454M Action Plan • Continued development of associated products • Invest in Field Engineers • Improve cycle time to market for new products • Develop strategically located R&D center to reduce time to market • Expand resources globally Global TAM
Page 13
Key Customer Testimonial for Patented Pitch Energy Modules “If you were to ask any wind technician who works on electric pitch systems what the weak link is in the whole system, most would likely say it’s the pitch batteries. Even without looking at the data, any technician knows this, as the task of exchanging and testing battery packs has been a part of their routine for decades. At TransAlta, we were looking for a solution to this issue, as our data shows that pitch faults due to weak batteries is one of our leading causes of downtime and lost production on our GE platforms. In this search for a solution, we met with Richardson Electronics who provided us with a plug and play solution with no modifications to our machines, allowing for an easy install. Richardson was very patient with us as we used caution moving into using their Ultra- caps. We chose to trial the Ultra-caps on several machines, at two sites, for a whole year before making the purchase. After that trial period, we can say that they have been an excellent upgrade, and we can’t wait to get these installed on the rest of the fleet. We have confidence in the product after our trial period, and we have many great reviews from other wind companies that made the switch 2-3 years ago and haven’t looked back. Switching to Ultra-caps is going to reduce the number of hub entries & climbs our technicians need to make in a day and we all know that the weather doesn’t always cooperate when we need to get into a hub. Ultra-caps are the solution to reducing lost production, freeing up man-power for more important tasks, and increasing revenue for many years to come. ” Dan Layton, Supervisor Soderglen & Lakeswind LTSA, TransAlta Corporation, one of Canada’s largest producers of wind generation
Page 14
Energy Storage Solutions (ESS) Growth Strategy New energy storage technologies bring disruptive technologies into niche markets. Market Opportunity Go to Market and Development Strategies Leveraging RELL’s Platform and Capabilities • Existing technology partners • Established engineering expertise to develop innovative solutions, such as hybrid ultracapacitor-flow battery systems • Pursuing shared revenue model through virtual power plants (VPP) • $32.6 billion global market for battery deployments in 2025 according to Fortune Business Insights • Projected to grow to $114 billion by 2032, reflecting a CAGR of 19.6% • Identified niche market for storage requirements in Illinois • Available government incentives can cover the expense of demonstrating new technologies over a multi-year period CY2026 • Deploy Battery Energy Storage Systems (BESS) at RELL facility to serve as a demonstration project for future customers FY2026 – Phase 1 • Focus on medium size C&I projects FY2028 – Phase 2 • Develop in-house manufacturing of large- scale long duration energy storage FY2029+ • Continue to vet and develop additional systems to provide differentiating value propositions for various niche markets Stores energy during off hour low consumption periods Which can be sold or used during high peak periods to help balance the grid
Page 15
System Design & Engineering Support Power Conversion & Balance of Plant Incentives & Rebates in IL, MA, and NJ Technology Partners Project Development Commercial Execution Demo Project, Commercial BESS, Niche Markets Interconnection and Rebate Application Support Channel Partners Customer Contracting Technology Integrator PCS Power Conversion Systems Transformer Step-up Transformer Switchgear MV Switchgear & Protection EMS / VPP Energy Management & VPP Integration Richardson Energy Storage System – RESS End-to-End Integration, Product Development and Project Execution Technology partners Core Energy Storage Platform Container Systems Integrated tested and ready for deployment Battery Packs High density, High efficiency, Built for reliability Battery Cells Industry-leading cell technology for performance and safety Best-In-Class Components DC Block Engineered Solution Project Management and Sales From cell to system to integration to sales Richardson Electronics is delivering U.S.-built energy storage solutions for behind-the-meter C&I and utility-scale projects through strategic technology partnerships that meet growing market demand Integrated Solution Richardson Energy Storage System — RESS Accelerating Scale Through Technology Partnerships, Product Development, and Product Support
Page 16
RESS Demonstration Site in LaFox, IL A live C&I energy storage showcase located at the Richrdson Electronics headquarters 2.0 MW / 8.0 MWh Two batter energy storage system containers Richardson's headquarters becomes a working RESS reference site for the C&I customers in the company’s pipeline Customer reference site C&I prospects see RESS operating Use cases on display Peak shaving, demand-charge management, backup power, and energy resilience Timeline Kickoff event in October with unit on site first half calendar year 2027
Page 17
Key Customers
Page 18
FY2027 Expectations • Semi-wafer Fab Market • Semiconductor wafer fab sales remain strong • Key customers forecasting growth for the remainder of CY2026 and CY2027 • Steady/increasing demand of wind turbine modules • Regular shipments from existing inventory • New significant orders from existing and new customers • Anticipated new significant orders from new customers for UltraPEM® and future expansion into the EU • Growing RESS pipeline, with interest driven by differentiated positioning • Engineering and manufacturing expertise in niche power management markets • Offering flexible solutions to meet customer requirements • Unique technology partnerships and U.S.-based footprint • Nearly 80-year corporate history with strong balance sheet • Capitalize on U.S. reshoring policies and content requirements; leverage LaFox manufacturing capabilities to support technology partners and customers expanding U.S. manufacturing • Continue to monitor global impacts from geopolitical events and tariffs, while remaining disciplined in sourcing, pricing, inventory management, customer commitments, and operating expense control Wabtec StartSaver Ultracapacitor System powered by Richardson Electronics
Page 19
Financials
Page 20
Financial Highlights 20 • First quarter FY2027 net sales increased 18.9% year-over-year, marking the ninth consecutive quarterly year-over-year increase in sales, and the highest quarterly net sales since the third quarter of fiscal 2023. • All business units experiences strong year-over-year sales growth. PMT sales increased 19.7% to $46.8 million, GES sales increased 27.1% to $9.2 million and Canvys sales increased 7.9% to $8.9 million. • Consolidated gross margin for the first quarter of FY2027 was 34.6%, compared to 31.0% during the first quarter of FY2026. Without an IEEPA Tariff Refund, gross margin for the first quarter of FY2027 was 32.9% • Net income was $4.1 million for the first quarter of FY2027, versus net income of $1.9 million in the first quarter of FY2026. • The Company focused on improving gross margins, reducing inventory levels, strengthening the balance sheet, and investing in long-term strategic growth opportunities. Quarterly Net Sales $208.9M $228.6M FY2025 FY2026 Full Year Net Sales Quarterly Net Income Full Year Net Income (Loss) $1.9M $4.1M Q1 FY2026 Q1 FY2027 $54.6M $64.9M Q1 FY2026 Q1 FY2027 ($1.1)M $6.4M FY2025 FY2026
Page 21
• Strong balance sheet with no debt, and $36.9 million in cash and cash equivalents • No borrowings outstanding under $20.0 million revolving line of credit • Completed multi-year inventory investment made around a single critical supplier providing coverage through 2030 • Generated free cash flow of $4.2 million in the first quarter FY2027 • Allocated $0.9 million of capital in the first quarter of FY2027 to support the Company’s regular cash dividend • Capital expenditures were $1.7 million in the first quarter of FY2027 primarily related to the Company’s manufacturing business, facilities, and IT systems • The Company continues to invest in working capital to support its growth initiatives ($s in 000s) August 29, 2026 May 30, 2026 Cash and Cash Equivalents $36,915 $31,779 Accounts Receivable $34,939 $33,162 Inventories, net $103,280 $103,020 Total Assets $211,694 $202,017 Total Debt $0 $0 Total Liabilities $42,469 $38,316 Shareholders’ Equity $169,225 $163,701 Balance Sheet and Cash Flow
Page 22
-$5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 FY2021 FY2022 FY2023 FY2024* FY2025** FY2026*** Capital Expenditures Inventory Dividends Capital Allocation Strategies Focused on Supporting Long-Term Growth Opportunities Investing in Infrastructure and IT Systems • Invested in facility renovations in FY2023 and FY2024 to support the growing demand for Green Energy Solutions (GES) products • Continual enhancements of IT infrastructure to support global opportunities Organic Growth Initiatives • Since FY2021, Richardson Electronics has invested in research & development, onboarding talented engineers, and enhancing its sales teams Sustained Dividend • The Company has paid out a regular quarterly cash dividend to common shareholders since 1990 Cash Flow Management • Maintain a healthy level on cash on the balance sheet • Approximately 52% of cash on Richardson's balance sheet is spread out across 23 of the Company’s foreign subsidiaries • Focused on converting inventory to cash in FY2027 Selective Multi-Year Acquisition Strategy • Targeted M&A that aligns with strategic growth initiatives Debt free balance sheet allows for strategic deployment of capital Capital Allocation Priorities $ in thousands *FY2024 includes a $0.1 million reduction in inventory **FY2025 includes a $0.2 million reduction in inventory **FY2026 includes a $0.5 million reduction in inventory Capital Allocation
Page 23
• Total backlog at the end of the first quarter of FY2027 was $184.4 million, an increase of $50 million or 36.9% year – over-year, and up 12.2% from the fourth quarter of FY2026. • Backlog at the end of Q1 FY2027 was at its highest level since year end FY2022 • GES segment backlog growth highlights continued strength in underlying demand for both new products and existing programs • The Company’s sales pipeline remains solid; the timing of new orders can vary quarter-to-quarter but generally range between 12 and 18 months. $- $50 $100 $150 $200 $250 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Q1 FY2027 Total Company Backlog ($ in millions) Backlog