Investor Presentation M a r c h 2 0 2 0 FORWARD- Certain - - PowerPoint PPT Presentation

Investor Presentation

M a r c h 2 0 2 0

FORWARD- LOOKING

statements

Certain statements made by us during this presentation are forward-looking statements within the meaning of federal securities laws. Tessco’s actual results may differ materially from those discussed in 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.

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The most advanced provider of hardware, software, and service solutions which enable the design, construction, deployment and maintenance of wireless infrastructure.

BUILDING OUR WIRELESS WORLD, TOGETHER

WHY INVEST IN TESSCO?

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EXPLOSIVE GROWTH IN THE WORLD OF WIRELESS AGGRESSIVE PROFIT IMPROVEMENT ACTIONS WELL POSITIONED TO PROVIDE DISRUPTIVE OFFERINGS NEW MANAGEMENT FOCUSED ON RETURN TO PROFITABLE GROWTH

WHO IS TESSCO

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COMPANY FACTS

1982

Tessco founded

$606.8M

Revenue (FY2019)

TL9000

Certified business

OVER 700

Team members

400

Suppliers

12,000

Monthly buying customers

TESS

NASDAQ listed since 1994

GSA

Schedule No. GS-35F-0548P

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THE MOST EFFICIENT ROUTE TO MARKET

for our customers & suppliers

H U N D R E D S O F M A N U F A C T U R E R P A R T N E R S Carrier Ecosystem Retailers VARs & Integrators T H O U S A N D S O F C U S T O M E R S C R E D I T C A P A C I T Y T E C H N I C A L P R O F I C I E N C Y S A L E S & M A R K E T I N G E X P E R T I S E 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

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OUR MARKETS

• Value-Added Resellers
• Private Systems Operators

(Utilities, Oil & Gas, Transportation, Mining)

• Government
• WISPs
• National Sales Providers

VARs & Integrators

• Carrier Stores
• Independent Carrier Agents
• Retailers
• eTailers

Retail Stores

• Carriers
• Program Managers
• Contractors
• Tower Owners

Carrier Ecosystem

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OVER 350 INDUSTRY LEADING SUPPLIERS

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VALUE-ADDED DISTRIBUTION

• Design Services
• Pre-Sales Engineering
• Post-Sales Tech Support
• Configuration

Technical Services

• Credit Solutions
• Diversity Programs
• Retail Analytics
• Business Process

Outsourcing

Advisory Services

• Site Kitting
• Solution Assembly
• Demand Planning
• Supply Chain Services

Logistics Services

• Merchandising
• Training
• Program Management
• Certification
• E-Commerce

Engagement Services

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DESIGNING & DELIVERING INNOVATIVE SOLUTIONS

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MOBILE ACCESSORIES Portable Power Wallport Chargers Wireless Chargers Dashport Chargers Chargesync Cables Charging Hubs Dashmounts Screen Protectors

CONSUMER FOCUSED

53%

COMMERCIAL FOCUSED COMMERCIAL FOCUSED

47%

COMMERCIAL FOCUSED

47%

WIRELESS INFRASTRUCTURE

Experts in Concealed Wireless Solutions

Wi-Fi Enclosures Wi-Fi Antennas Cable Assemblies Power Systems Turnkey Integrated Systems Base Site Infrastructure Tools & Supplies

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WHERE WE ARE TODAY

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REVENUE AND INCOME TRENDS

• Loss of significant Retail customer
• Inconsistent pace of the 5G infrastructure

buildout in the carrier ecosystem has diminished the impact of our increasing market share

• Recent earnings results have been further

impacted by steps taken to:

• right size and optimize the inventory
• make appropriate adjustments to goodwill

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FOCUSED ON CAPTURING SHARE

Carrier Ecosystem

• Gaining market share with key customers while well

positioned for significant growth upon expansion of 5G buildout

VAR, Integrator & Industrial End Markets

• Implementation of IoT and CBRS offers extraordinary

growth opportunities

Retail

• Online competition and market consolidation driving

uncertainty amongst retailers; leveraging strategic supplier partnerships and developing relationships with non-traditional retail outlets to take share

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NEAR-TERM PERFORMANCE INITIATIVES

• Modernizing operational tools to improve

customer experience

• Intensifying focus on specific high-growth

end markets (e.g. Utilities)

• Improving balance sheet by introducing

more rigorous inventory management

• Increasing omnichannel eCommerce

capabilities

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EXPANSIVE GROWTH OPPORTUNITIES

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TECHNOLOGICAL CHANGE DRIVING EXPONENTIAL INDUSTRY GROWTH…

Private LTE CBRS $130B to be spent on 5G buildout by 2024 Wi-Fi 6

IoT in the Industrial Space

IoT in the industrial space

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…CREATES TREMENDOUS OPPORTUNITY FOR TESSCO

Deployment of new technologies is introducing a new level of complexity

• Inside buildings, stadiums, manufacturing

facilities, etc.

• Densification of small cells
• Requirement for improved aesthetics

New applications of wireless technology are greatly increasing the addressable markets

• Utilities
• Oil & Gas
• Transportation
• Manufacturing

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THREE-PRONGED APPROACH TO CAPITALIZE ON THESE OPPORTUNITIES

MANAGED SERVICE OFFERING CORE DISTRIBUTION

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CORE DISTRIBUTION

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

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RETURNING TO A DIFFERENTIATED MARKET POSITION

Building on our value in the carrier ecosystem

• Solving complex issues with new technologies
• Managing inventory and logistics around site builds
• Helping customers react quicker when carrier

requirements change

• Solving challenges with construction

Shift to higher margins & more predictable revenue

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WHY INVEST IN TESSCO?

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EXPLOSIVE GROWTH IN THE WORLD OF WIRELESS AGGRESSIVE PROFIT IMPROVEMENT ACTIONS WELL POSITIONED TO PROVIDE DISRUPTIVE OFFERINGS NEW MANAGEMENT FOCUSED ON RETURN TO PROFITABLE GROWTH

T H A N K Y O U