Outdoor Holding Company · NASDAQ:POWW
Outdoor — Investor Presentation (December 2023)
33 slides from Outdoor's investor presentation, December 2023
Slide 1: Investor Presentation December 2023
Investor Presentation December 2023 POWW
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other
Slide 3: Investment Highlights
Investment Highlights • The largest online marketplace for firearms in the US and expanding from the ‘Auction House of Firearms’ to the ‘Amazon / eBay of Shooting Activities’ • New management team leading transition from manufacturing model to technology model • Legacy manufacturing business (Ammo,
Slide 4: Introduction – Ammo, Inc.
Introduction – Ammo, Inc. REASONS TO LISTEN GUNBROKER.COM (TECHNOLOGY) AMMO (MANUFACTURING) $1 + BILLION ANNUAL MERCHANDISE SALES NEW 185,000 SQ FT. MANUFACTURING FACILITY DOUBLES CAPACITY 80+% GROSS PROFIT MARGIN FROM MERCHANDISE STRATEGIC PIVOT TO HIGHER MARGIN DEEP FEE REVENUE DRAW RIFLE BRASS PR
Slide 5: Market Opportunity
Market Opportunity GUNBROKER.COM AMMUNITION MARKET INCREASED CUSTOMER BASE GROWING INTERNATIONAL DEMAND • 70% of the US Population shops online • $22.35B global ammunition market in 2021 and • Marketplace ecommerce sales were forecast to hit estimated to reach $23.30B in 2030 $357 billion in 2022 or
Slide 6: Marketplace
Marketplace March 21, 2023
Slide 7: GunBroker.com Today
GunBroker.com Today GunBroker.com is the World’s Largest Online Marketplace of Firearms and Accessories HOW IT WORKS • FFL Performs NICS --> Transfers • Buyer purchases Firearm from Top 600 Gun to Buyer. FFL typically Seller on GunBroker.com Ranked in the USA for Traffic charges Buyer a Transfer Fee
Slide 8: Market Dynamics
Market Dynamics 38% of all FFL’s are Actively engaged on GunBroker.com1 Increased Capability and Go To Market Approach Strong Hunt Shoot Industry Fundamentals 16.4 Million • Customer Experience Firearms Sold in the US 20222 • Seller Solutions 268 Million • Building Brand Awareness Digital Buyers in
Slide 9: Transaction & Payment
Transaction & Payment Transaction Today Payment Today BUYER SINGLE SELLER BUYER SINGLE SELLER $ $ FFL Exchange Fees/Taxes Future Transaction Future Payment POWW 9
Slide 10: Marketing: Lifestyle Campaigns
Marketing: Lifestyle Campaigns Lifestyle campaigns are the backbone of our marketing communications. They get populated into: • Landing pages • Hero Cards • Broadcast Emails • Targeted emails – browse abandonment • House Ad Campaigns • Offsite Ad Campaigns POWW 10
Slide 11: Marketing: Lifestyle Campaigns
Marketing: Lifestyle Campaigns Target unique consumer personas – 126 current campaigns and growing POWW https://www.gunbroker.com/c/a/gunbroker-lifestyle/ 11
Slide 12: Marketplace Revenue: Current and Future
Marketplace Revenue: Current and Future Current Revenue Revenue Expansion Final Value Fee Ancillary Product Categories for the Outdoor Enthusiast • The Final Value Fee is assessed when the listing sells and is • Ancillary categories significantly expand market opportunity. based on the price that th
Slide 13: Financial Goals Over Next 3 Years
Financial Goals Over Next 3 Years 10% Year-Over-Year Revenue Growth • Trailing 36-month Annual Average Gross Merchandise Volume of $1.3 Billion • Increasing take rate from 6% to 9%-12% • Tiered fee structure • Attractive shipping offerings • Advertising • Customized Analytics Solutions • Cross-selli
Slide 14: Profitable Growth
GunBroker.com Build out Years 4-5 3-to-5-Year View Years 2-3 Long-term • Expand Service offerings • Forecasting Profitable Growth Year 1 Mid-term • Marketing/Advertising Services • Social engagement Near-term Model • Establish new markets • Organizational alignment • Financing of Cart • Fishing and
Slide 15: Ammunition Division
Ammunition Division POWW 15
Slide 16: Ammunition Components
Ammunition Components BRASS POWW 16
Slide 17: Pivot to Higher Margin Product Mix
Pivot to Higher Margin Product Mix AMMO, INC. PRODUCT MIX 2023 PIVOT – FUTURE PRODUCT MIX 12% 35% 41% 40% 31% 16% 25% Pistol Ammo Rifle Ammo Brass Sales Other Pistol Ammo Rifle Ammo Brass Sales POWW 17
Slide 18: Build-out of Manufacturing Facility
Build-out of Manufacturing Facility • Cost Out Initiatives – Bunter Mfg. • CAPEX - $1.285M • Redundancy - Rifle Case Production • CAPEX - $818K • Annealing Oven – Body Annealing • CAPEX - $723K • Press Rebuild – Medium Action • Cervo Press Rebuild – Operational 11/15/2023 POWW 18
Slide 19: Competitive Landscape
Competitive Landscape Competition Positioning • Ammo division stock split from outdoor group – Strong Performer but heavy overhead with cost of Remington • Predatory Pricing, consistently lowest price on market with PMC • Market Leader on 223/5.56 with offset cost from LC • High Quality, Seen as mar
Slide 20: Strategic Account Management
Strategic Account Management ONLINE / RETAIL SHOOTING RANGES DISTRIBUTORS BUYING GROUPS POWW 20
Slide 21: Sales & Channel Management
Sales & Channel Management Expand channels and presence with targeted initiatives and new products Objectives Investment Deliverables • Target and build key customer • Rebrand initiative of premium • Sales plan of $100M+ relationships through Strategic rifle with consumers Loaded Ammunition Marginal
Slide 22: Profitable Growth
Ammunition Division Years 4-5 3-to-5-Year View Long-term Years 2-3 • New products Profitable Growth Mid-term • Portfolio expansion in premium rifle YEAR 1 • Acquisitions/divestitures • New products • Projectile Manufacturers Near-term • Build superior brand around rifle • Primer Manufacturers • Orga
Slide 23: Financial Goals Over Next 3 Years
Financial Goals Over Next 3 Years Revenue Goals exceeding $150M • Financial Targets: • Gross Profit Margins: 25%+ • EBITDA Margins: 20%+ • Maximum Capacity: • 600M to 700M Cartridges / Brass Casings • At 80% OEE Rate • Stroke and Machine Capacity to Exceed 900M POWW 23
Slide 24: Summary
Summary • The Largest Online Marketplace for Firearms in the U.S. • New Management Team Leading Transition from Manufacturing Model to Technology Model • Gunbroker.com Expanding From the ‘Auction House of Firearms’ to the ‘Amazon / eBay of Shooting Activities’ • Legacy Manufacturing Business Pivotin
Slide 25: POWW
POWW
Slide 26: APPENDIX
APPENDIX
Slide 27: Company Snapshot
Company Snapshot Market Statistics1,3 Share Price $2.02 Diluted Shares Outstanding2 118.2 million 52 Week High $3.15 Market Capitalization $239.3 million 52 Week Low $1.56 Debt (as of 9/30/2023) $12.3 million Avg. Daily Volume (3 Months) 805,570 Cash (as of 9/30/2023) $49.5 million Insider Ownership
Slide 28: Manufacturing Facility, WI
Manufacturing Facility, WI • 185,000 sq ft ⎼ Training facility ⎼ 12 shipping bays ⎼ 37 acres with options on an additional 38 contiguous acres • Highly desired deep draw skill set and equipment • 200-meter indoor ballistic range • Footprint to expand another 40,000 sq ft • H-Occupancy loading bay fo
Slide 29: Calibers Produced in House
Calibers Produced in House Rifle Pistol • 50BMG • 9mm • 12.7 X 108 • 25Auto • 338 Lapua • 32Auto • 338 Norma Magnum • 380Auto • 300 Norma Magnum • 38SPL • 7mm PRC - New • 38SUPER • 6.5mm PRC • 357M • 300WM • 40SW • 7REM MAG • 45Auto • 6MM ARC • 44 MAG • 45-70 • 45 LC • 350 Legend • 450 BM - New • 30
Slide 30: Calibers Produced in House
Calibers Produced in House Rifle • Rifle • 308 • 7.62 X 39 • 22-250 • 5.45 X 39 - NP • 7mm-08 • 6.5 CM • 243 • 6mm CM • 6.8 X 51 • 6.5 Grendel • 30-06 • 6mm Arc • 270 • 4.6 • 25-06 Pistol • 35 Whelan - NP • 25 Auto • 350 Legend - NP • 32 Auto • 45-70 - NP • 357 Sig POWW 30
Slide 31: Current Military Opportunities
Current Military Opportunities POWW 31
Slide 32: Market Share: GunBroker vs NICS
Market Share: GunBroker vs NICS • National Instant Criminal Background Check System (NICS): Adjusted NICS The NICS conducts background checks on people who want to own a firearm or explosive, as required by law. • Comparing sales from 9/1/2021 to 9/30/2023 on the GunBroker.com platform against repor
Slide 33: 16 Year Market Trend
16 Year Market Trend $1,400,000,000 Obama (D) Obama (D) Trump (R) Biden (D) Elected Elected Elected Elected $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PIS/REV SUM LONG GUNS AMMO/
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