Investor Presentation M a r c h 2 0 2 0
FORWARD- Certain statements made by us during this presentation are forward-looking statements within the LOOKING meaning of federal securities laws. Tessco’s actual results may differ materially from those discussed in statements any forward-looking statement. Additional information concerning factors that may cause such a difference can be found in Tessco’s public disclosure, including Tessco’s most recent report on Form 10-K, as well as prior and subsequently filed reports. 2
BUILDING OUR WIRELESS WORLD, TOGETHER The most advanced provider of hardware, software, and service solutions which enable the design, construction, deployment and maintenance of wireless infrastructure. 3
EXPLOSIVE GROWTH IN THE WORLD OF WIRELESS AGGRESSIVE PROFIT IMPROVEMENT ACTIONS WHY INVEST IN TESSCO? WELL POSITIONED TO PROVIDE DISRUPTIVE OFFERINGS NEW MANAGEMENT FOCUSED ON RETURN TO PROFITABLE GROWTH 4
WHO IS TESSCO 5
COMPANY FACTS 1982 $606.8M TL9000 OVER 700 Tessco founded Revenue (FY2019) Certified business Team members 400 12,000 TESS GSA Suppliers Monthly buying NASDAQ listed Schedule No. customers since 1994 GS-35F-0548P 6
THE MOST EFFICIENT ROUTE TO MARKET for our customers & suppliers T E C H N I C A L H U N D R E D S O F T H O U S A N D S P R O F I C I E N C Y M A N U F A C T U R E R O F C U S T O M E R S P A R T N E R S Carrier Ecosystem S A L E S & C R E D I T M A R K E T I N G C A P A C I T Y E X P E R T I S E VARs & Integrators Retailers S U P E R I O R L O G I S T I C S C A P A B I L I T I E S 7
OUR MARKETS Carrier Ecosystem VARs & Integrators Retail Stores • Carriers • Value-Added Resellers • Carrier Stores • Program Managers • Private Systems Operators • Independent Carrier Agents (Utilities, Oil & Gas, • Contractors • Retailers Transportation, Mining) • Tower Owners • eTailers • Government • WISPs • National Sales Providers 8
OVER 350 INDUSTRY LEADING SUPPLIERS 9
VALUE-ADDED DISTRIBUTION Technical Services Advisory Services Logistics Services Engagement Services • Design Services • Credit Solutions • Site Kitting • Merchandising • Pre-Sales Engineering • Diversity Programs • Solution Assembly • Training • Post-Sales Tech Support • Retail Analytics • Demand Planning • Program Management • Configuration • Business Process • Supply Chain Services • Certification Outsourcing • E-Commerce 10
DESIGNING & DELIVERING INNOVATIVE SOLUTIONS 11
WIRELESS MOBILE INFRASTRUCTURE ACCESSORIES Experts in Concealed Wireless Solutions Portable Power Wi-Fi Enclosures Wallport Chargers 53% 47% 47% Wi-Fi Antennas Wireless Chargers Cable Assemblies CONSUMER COMMERCIAL COMMERCIAL COMMERCIAL Dashport Chargers Power Systems FOCUSED FOCUSED FOCUSED FOCUSED Chargesync Cables Turnkey Integrated Charging Hubs Systems Dashmounts Base Site Infrastructure Screen Protectors Tools & Supplies 12
WHERE WE ARE TODAY 13
• Loss of significant Retail customer • Inconsistent pace of the 5G infrastructure REVENUE AND buildout in the carrier ecosystem has diminished the impact of our increasing market INCOME TRENDS share • Recent earnings results have been further impacted by steps taken to: • right size and optimize the inventory • make appropriate adjustments to goodwill 14
FOCUSED ON CAPTURING SHARE • Gaining market share with key customers while well Carrier Ecosystem positioned for significant growth upon expansion of 5G buildout VAR, Integrator & • Implementation of IoT and CBRS offers extraordinary growth opportunities Industrial End Markets • Online competition and market consolidation driving uncertainty amongst retailers; leveraging strategic Retail supplier partnerships and developing relationships with non-traditional retail outlets to take share 15
• Modernizing operational tools to improve customer experience NEAR-TERM • Intensifying focus on specific high-growth end markets (e.g. Utilities) PERFORMANCE • Improving balance sheet by introducing INITIATIVES more rigorous inventory management • Increasing omnichannel eCommerce capabilities 16
EXPANSIVE GROWTH OPPORTUNITIES 17
TECHNOLOGICAL CHANGE DRIVING EXPONENTIAL INDUSTRY GROWTH… IoT in the Industrial Space $130B Private LTE CBRS Wi-Fi 6 IoT in to be spent on the industrial 5G buildout space by 2024 18
…CREATES TREMENDOUS OPPORTUNITY FOR TESSCO Deployment of new technologies is New applications of wireless technology are introducing a new level of complexity greatly increasing the addressable markets • • Inside buildings, stadiums, manufacturing Utilities facilities, etc. • Oil & Gas • Densification of small cells • Transportation • Requirement for improved aesthetics • Manufacturing 19
THREE-PRONGED APPROACH TO CAPITALIZE ON THESE OPPORTUNITIES CORE MANAGED SERVICE CORE DISTRIBUTION DISTRIBUTION OFFERING 20
EXECUTING ON A THREE-PRONGED GROWTH STRATEGY I. Regain competitive advantage in core distribution business II. Scaling Ventev capabilities to become an engineering-led, roadmap-driven, industry leader • Industrialize product development to focus on innovation • Capitalize on large existing opportunity in aesthetically pleasing and environmentally neutral enclosures III. Provide value-added and managed services offerings • Reduce customer complexity and pain points • Leverage domain expertise in wireless network construction • Focus on developing sustainable, higher-margin, incremental revenue stream 21
RETURNING TO A DIFFERENTIATED MARKET POSITION Building on our value in the carrier ecosystem • Solving complex issues with new technologies Shift to higher margins & • Managing inventory and logistics around site builds more predictable revenue • Helping customers react quicker when carrier requirements change • Solving challenges with construction 22
EXPLOSIVE GROWTH IN THE WORLD OF WIRELESS AGGRESSIVE PROFIT IMPROVEMENT ACTIONS WHY INVEST IN TESSCO? WELL POSITIONED TO PROVIDE DISRUPTIVE OFFERINGS NEW MANAGEMENT FOCUSED ON RETURN TO PROFITABLE GROWTH 23
T H A N K Y O U
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