Virtra, Inc. · NASDAQ:VTSI
Virtra — Investor Presentation (September 2019)
25 slides from Virtra's investor presentation, Sep 5, 2019
Slide 1: The World's Most Effective and Advanced Training Simulator Systems
The World’s Most Effective and Advanced Training Simulator Systems PRESENTATION
Slide 2: Forward Looking Statements
VirTra Forward Looking Statements This presentation contains or incorporates by reference certain forward-looking statements that are subject to various risks and uncertainties. Forward- looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “shoul
Slide 3: About VirTra
About VirTra [ By the Numbers / * VirTra provides the world’s finest all (4) training simulators for the law i Depiovedin enforcement and broader defense industries $12.2 Million f Hundreds of Agencies * We Safely & cost-effectively replicate in Revenue (TTM) in 32 Countries the stress & uncertainty
Slide 4: Police Training is Needed & Supported
Police Training is Needed & Supported 68% 16 “A solid majority of Americans of Americans support approve of de-escalation training additional training for even though most believe police officers use appropriate force and police () have integrity.” (2) Ekins, Emily. “Policing in America: Understandi
Slide 5: Current Methods Are Insufficient or Too Expensive
Current Methods Are Insufficient or Too Expensive x Classroom/Academics/Online * Knowledge does not equal performance WHAT’S NEEDED? x Simunition® Training with Actors ty Effective Training via Reviewable & « Expensive, time consuming Repeatable Scenarios * Very limited de-escalation training * No d
Slide 6: V-300 Degree Simulator
V-300°® Degree Simulator
Slide 7: V-100 and V-180 Simulators
V-100° V-180°® = Single-screen simulation training = 180-degree immersive training environment
Slide 8: Driving Simulators
Driving Simulators = Announced March 2019 = Expands TAM = Creates unique cross-selling opportunities ® 3 Initial orders received with total contract value of $2.7 million
Slide 9: V-ST PRO
V-ST PRO® = Shooting and skills training simulator = Up to 5 screens = 1 to 30 lanes of marksmanship
Slide 10: Firearms & TASER Threat-Fire
Firearms & TASER Threat-Fire® Realistic firearms Patented technology , a : : ww parts swapped for delivers adjustable simulation electric impulse Wide-selection of Skingln-the Game G SUS REA takes rt increases stress & and medals physiological response Additional patents acquired from Tiberius Techn
Slide 11: V-VICTA Curriculum
VirTra V-VICTA Curriculum VirTra — Virtual Interactive Coursework Training Academy ™ = Nationally recognized, certified curriculum and interactive virtual coursework =" Meets standards set by IADLEST National Certification Program™ for POST certification in 35 states ft Human Factors in Contact and
Slide 12: Law Enforcement Market
Law Enforcement Market Domestic = $650 million TAM (6,500 larger U.S. agencies") = Currently serving hundreds of domestic agencies = STEP — potential to expand to all 18,000 U.S. agencies International = Currently in 31 countries internationally Notable Existing Deployments Domestic International AZ
Slide 13: International System Deployment
International System Deployment VirTra simulators have been deployed in 32 countries worldwide out of 174 potential. _ @OO x Oe 2 OVP =|] AMlina Se = a
Slide 14: Why Customers Choose VirTra
Why Customers Choose VirTra VirTra Realistic 300° and 180° simulators with deployments for each category Far Superior Training Conte! Add real stress through the patented Threat-Fire® product Top Reputation for quality products and customer service Higher quality training can decrease legal liabilit
Slide 15: Financial Overview
Financial Overview Proven track record of consistent revenue and net income growth Total Revenue Gross Profit Net Income $11.0 $10.2 $18.1 $9.7 Se S33" $16.5 $1.5 $15.7 $7.7 $1.3 $13.3 $12.2 $6.4 $0.8 $9.9 $5.5 a a = 2014 2015 2016 2017 2018 TIM 2014 2015 2016 2017 2018 TIM 2014 2015 2016 2017 2018
Slide 16: Solid Balance Sheet & Clean Capital Structure
Solid Balance Sheet & Clean Capital Structure $ in Millions June 30, Dec. 31, Clean capital structure 2019 2018 Cash & CDs $3.3 $6.0 7.7 million shares outstanding Total Assets $16.6 $15.2 Repurchased $812K of stock as of June 30, 2019 Total Debt $0.0 $0.0 Total Equity $9.3 $10.6 No debt and no pref
Slide 17: Growth Tactics
Growth Tactics Building upon a strong foundational core to scale and grow our business Leve rage Strategic * Force Science Institute . * Haley Strategic Partners Partnershi ps * National Sheriff’s Association Teor * Introduce new product categories and G row Beyond Existi ng increase recurring reven
Slide 18: STEP — Subscription Training Equipment and Partnership Program
VirTra STEP — Subscription Training Equipment and Partnership Program = Launched March 2019 = 12 month subscription = Increases recurring revenue = More consistent & predictable = Increases TAM = Reduces upfront costs = Lowers barrier to entry for agencies The industry’s only subscription-based law
Slide 19: Additional Growth Opportunities: Military
ne Additional Growth Opportunities: Military = Military market expanding as simulation training gains acceptance & tech improves = Growing demand for AR/VR Tech, De-escalation, and Recoil Kits — well suited to VirTra’s legendary innovation and core immersive tech Engaged JL O’Connell & Associates to
Slide 20: Investment Considerations
Investment Considerations Industry Leader Superior Technology Strong Financial Performance Best-in-class de-escalation & judgmental use-of-force simulators Alternatives are often too expensive, too unrealistic or too dangerous Most effective solution (simulator, content, firearms, Threat-Fire® and m
Slide 21: Contact Us
Contact Us VirTra, Inc. www.virtra.com Investor Relations Matt Glover or Charlie Schumacher Gateway Investor Relations VTSI@gatewayir.com (949) 574-3860
Slide 22: Appendix
Appendix
Slide 23: Additional Officer Testimonials
Additional Officer Testimonials 66 66 | definitely feel better about going out on the It’s not a one-time training next call after being put through the paces in tool — the opportunities are the VirTra system.” limitless.” - O'Fallon Police Officer — First Sergeant Joe Bice Stafford County Sheriff’s
Slide 24: Senior Management
VirTra Senior Management eae hae Bob Ferris, Chief Executive Officer Mr. Ferris founded Ferris Productions, Inc. in 1993 and, after the merger between Ferris Productions and GameCom in September 2001, he became CEO of the combined company, VirTra, in 2008. Mr. Ferris’s vision was to create the most
Slide 25: Board of Directors
VirTra Board of Directors Mitchell A. Saltz, Director Mr. Saltz has served as a director since 2016. He has also served as a director of American Outdoor Brands Corporation (formerly, Smith & Wesson Holding Corporation), a publicly traded company with shares listed on NASDAQ, since 1998 and served a