tessco technologies incorporated
TRANSCRIPT
May 2021
Tessco is capitalizing on the telecom industry’s
unprecedented rollout of new and disruptive wireless
technologies to drive long-term, profitable growth.
Sidoti Virtual Conference
TESSCO Technologies Incorporated
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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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Macro Site 30-40 SKUs per site
Small Cell 20-25 SKUs per site
Fleet & Telematics 15+ SKUs per site
Utility & Grid Modernization 20-25 SKUs per site
Transportation15+ SKUs per site
Large Public Venues30-40 SKUs per site
Hospital/Campus25-30 SKUs per site
Enterprise25-30 SKUs per site
Complexity Simplified Real Value
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TesscoA Value-Added Distributor & Solutions Provider
• Efficient access to markets
• Simplified product distribution
• Opportunity to be part of a differentiated/complete solution.
Supplier
• Broad assortment of products, technologies, and brands
• End Market/Domain expertise
• Design services and BoM
• Customizable logistics and financial solutions
• Ventev Product Design & Manufacturing
• Software-driven services:
• Materials Management during construction
• Device Lifecycle Services (deployment, maintenance, replacement)
Customer
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Our MarketsCarrier Ecosystem
• Tier 1 Carriers
• Tier 2, Tier 3 & Rural Carriers
• Program Managers
• Contractors
• Tower Owners
Commercial/Industrial
• Value-Added Resellers
• Public & Private Venues
• Building Owners
• Transportation, Utilities
• Mining, Oil & Gas
• Manufacturing
• Public Sector (Federal, State,
Local & Education)
$130B to be spent on 5G
Global Buildout by 2024
$16.3B to be spent globally
on Private LTE by 2025
CBRS gear to exceed $850M
in US by 2024
Expect 19% CAGR in US
industrial IoT by 2026
Technological ChangeDriving Aggressive Industry Growth…
Source: ABI
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• Enclosures
• Antennas, (Wi-Fi, LTE, 5G, CBRS)
• Cable Assemblies
• Power Systems
• Turnkey Integrated Systems
• Base Site Infrastructure
• Tools & Supplies
Wireless InfrastructureDesigning & Delivering Innovative Solutions
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Tessco's Ongoing EvolutionCreating Solutions Customers Need
Software-Driven ServicesDistribution Ventev Innovations
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• Exited Retail
• Extended $75M ABL to 2024
• Improvements In:
• Ease of doing business
• Technology and industry specialists
• High demand inventory investments
• Enhanced Tessco.com & Created E-Commerce Unit
• IT Infrastructure Modernization
• Development of proprietary software offering
• Prepared for post-pandemic scale
The “New” Tessco Invested for Growth
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• Reopening of America
• Market share growth in Carrier Ecosystem
• Increasing demand for 5G in Carrier Ecosystem
• Unique OEM Partnerships
• Strong pipelines in end-markets
• Increasing Government investments
• Evolving Technology
• Increased percentage of online (Tessco.com) sales
Momentum
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• Economies of Scale
• Ventev: Differentiator and higher margins
• Increasing percentage of online (Tessco.com) orders
• Efficiencies as a result of recent investments in IT
• Design Services
• Investments in Software-driven services (Beta Testing)
Why Our Margins Will Improve
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Why Invest In Tessco?
EXPLOSIVE
WIRELESS
GROWTH
UNIQUE
CONVERGENCE
OF DISRUPTIVE
TECHNOLOGIES
DIRECT
BENEFICIARY
OF 5G &
LTE/CBRS
Winning Tier 1 Market Share
has current & future rewards
• Expanding Disruptive Proprietary Offerings
• Winning Solutions Customers Need
• Recurring Revenue & Profitability Gains