Byrna Technologies, Inc. · NASDAQ:BYRN
Byrna Technologies — Investor Presentation (July 2022)
30 slides from Byrna Technologies's investor presentation, Jul 12, 2022
Slide 1: Byrna - Live Safe, July 2022
© byrna LIVE SAFE July 2022
Slide 2: Safe Harbor Statement
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Slide 3: Byrna Is Part of the Solution
BYRNA IS PART OF THE SOLUTION “Our mission is to save lives by providing both safe and effective non-lethal alternatives to firearms as well as defensive products which can protect civilians and security professionals alike from lethal fire." a
Slide 4: Deterioration of Safety and Civility
(three or more people shot at nce). DETERIORATION OF SAFETY AND CIVILITY 5% increase in homicides 2021 vs. 2020 42M total guns sold in 2021 and 2020 13.8 M guns sold to FIRST TIME buyers in} 2021 and 2020 460 school shootings in last five years 118% increase in school shootings in 2021 vs 2020
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Slide 6: Byrna Handheld Launchers
BYRNA HANDHELD LAUNCHERS Fires kinetic and chemical irritant projectiles using CO2 Incapacitates an assailant from a safe standoff distance of up to 60 feet No license, background check or waiting period required Patented trigger-pulltechnology Easy to use Installed User Base: 150,000+ launchers sol
Slide 7: Byrna Shoulder Fired Launchers
BYRNA SHOULDER FIRED LAUNCHERS Byrna TCR: Tactical Compact Rifle -— er y* ‘Ma: Tactical Full-Sized Rifle —— — sora esate ste coaepaton “Ni Fires .68 caliber projectiles using 12 gram CO2 Capable of shooting 17+ rounds at 300 FPS MSRP: $699 Fires .68 caliber projectiles using 88 gram CO2 Capable of s
Slide 8: Byrna Projectiles
BYRNA PROJECTILES * Fullline of .68 caliber projectiles SELF-DEFENSE * Inert, kinetic and chemical irritant versions * Environmentally friendly Eco-Kinetic round (o ® * + Ramping in-house production vee sia! + Re-occurring consumable sale TRAINING AND RECREATION * 500,000 rounds sold / month and gro
Slide 9: Byrna 40MM Impact Rounds
BYRNA 40MM Impact Rounds Bluntimpact Projectile (BIP) uses patented collapsible gel head technology * Sold IP to Facta Global in July 2022 for future royalty revenue stream * Retained exclusive right to sell 40mm in US and South Africa Best in class 40MM less lethal round Restricted to law enforceme
Slide 10: Byrna Shield and Ballistipac
BYRNA SHIELD AND BALLISTIPAC * INA Soft, Hard and III+ Rifle Armor * Focus for School Safety program + Ballistipac - Features a patented quickdraw ‘system, enabling a front plate carrier to be deployed using one hand * Contains front and back Byrna Shield Armor Plates * MSRP: $149 (Byrna Shield) and
Slide 11: Byrna Self Defense Sprays
BYRNA SELF DEFENSE SPRAYS Acquisition of Fox Labs portfolio of aerosol spray products Fills void in Byrna’s continuum of force Softer product category than launchers but active protection compared to Byrna Banshee Will be marketed to over 225,000 members of Byrna nation across all sales channels Add
Slide 12: Byrna Banshee
BYRNA BANSHEE Personal Safety Alarm that emits 130db 6) siren when pulled 7 Comfortable entry-level price point for consumers C) y Softer product category than launchers - > introduction to Byrna brand Approximately 20,000 units sold since 4 August 2021 launch MSRP: $30.
Slide 13: Byrna Accessories
BYRNA ACCESSORIES + 13% of revenue + Retargeting and follow up campaigns to installed user base * Continuing to source and develop additional accessories to complement core products: + T-round magazine ($30 MSRP) * Magazine Defender ($30 MSRP) + Sudecon Decontamination Packs ($15 MSRP)
Slide 14: US Consumer Market Opportunity
US CONSUMER MARKET OPPORTUNITY @©)byrna ++ US Consumer Market —————, 204M Potential Customers Out Of 255M Adults 111,000 E-Commerce Customers To Date 35M 16M ‘Note Bp estimate arta 0% US 2 woud nse pextaens manos
Slide 15: US Law Enforcement Market Opportunity
US LAW ENFORCEMENT MARKET OPPORTUNITY Focus on generating credibility in the law enforcement (LE) community 147 agencies trained through our T3 program Early adopters include both federal and state agencies such as the ATF and Spokane County Go to market strategy: through T3 training and LE specific
Slide 16: South Africa Market Opportunity
SOUTH AFRICA MARKET OPPORTUNITY * Second home market — local manufacturing factory in Pretoria * Local regulations require strict licensing for firearms * Addressable Markets: * Taxi Drivers — 1.2mm * Private Security Guards - 1mm * Outdoors Retail Stores
Slide 17: Canada and International Market Opportunity
CANADA AND INTERNATIONAL MARKET OPPORTUNITY Recent orders from Argentina, France, South Korea, Poland and Chile Large Tenders Longer sales process (exports, etc) but significantly larger orders * Indonesia ($1mm initial purchase order) * Argentina ($400k initial purchase order) Untapped markets wher
Slide 18: School Safety Market Opportunity
SCHOOL SAFETY MARKET OPPORTUNITY * Andy Pollack leading school safety effort * Byrna Shield for students, adults for personal protection * Byrna Ballistipac for School Resource Officers (SRO) and Law Enforcement * Market more broadly to larger audience — e.g. those unwilling to carry a weapon. Nt te
Slide 19: Expansion of Sales Channels
EXPANSION OF SALES CHANNELS DEALERS AND E-COMMERCE DISTRIBUTORS a. einiviegacai
Slide 20: Sales % Breakdown by Market Channel
Sales % Breakdown by Market Channel Q2 2022 Target E-Commerce (byrna.com) 50% 40% E-Commerce (Amazon) 10% 20% Dealer / Distributor 16% 20% International 23% 15% Law Enforcement / Private Security / Schools 1% 5% Total 100% 100%
Slide 21: Razor / Razor Blade Business Model
RAZOR / RAZOR BLADE BUSINESS MODEL Launchers drive consumable sales Recommendations from Byrna Nation Robust level of repeat orders Installed base likely to upgrade
Slide 22: Compelling Growth Profile
COMPELLING GROWTH PROFILE Annual Revenue (sin milo) 36% ylyarowtn (aermepoint) / $55-$60 154% waren, sa i Guidance Growth Strat Leverage the Byrna brand ig New Products gin poses New Channels fay G2 New Markets cil Strategic Acquisitions
Slide 23: Revenue Growth - Excluding Hannity
REVENUE GROWTH - EXCLUDING HANNITY Annual Revenue Excluding Hannity Mentions (Stn milions) 74% —_ $85-$60 371% yyoromth —_,” . o
Slide 24: Gross Profit Margin / EBITDA Margin
Gross Profit Margin / EBITDA Margin 2020 2021 Target Gross Profit % 45% 54% 60-65% Adj. EBITDA N/A 3% 30%
Slide 25: New Product Innovation
NEW PRODUCT INNOVATION Handheld Launchers Shoulder-Fired Launchers = tll LE:SWAT/ ERT PE:HighEnd Conceal Carry "PAL: Pump Action Shotgun 12 — Gauge Non Lethal Rounds {61 caliber round ball + filed fin section provides more payload <dalivery comparedto 68 caliber ball projactie into established base
Slide 26: Strategic Acquisitions
STRATEGIC ACQUISITIONS Mission Less Lethal Acquired Mission Less Leth assetsin May 2021 Leaderin non-lethal, shoulder- firedrifles Full suite of products necessary for Law Enforcement IP portfolio strengthens, competitive moat Byrna Shield Acquired assets of Ballstipax® in August 2021 Single-handed,
Slide 27: Financial Position
FINANCIAL POSITION ($ in thousands) As of May 31, 2022 (unaudited) Cash $25,847 Inventory $13,468 Receivables : $2,549 Debt Wd o ] a $0 I Treasury Shares | 1,779,958 * $10 M share repurchase completed in March — Additional $5 million repurchase completed in May * No need to access public markets to
Slide 28: Investment Thesis
INVESTMENT THESIS Byrna Undervalued Relative to Peers on Comparable Metrics. * EV /FY22E Sales: * FY21A Gross Margins: * FY19-FY22E Rev. CAGR: * BYRN: 2.9x * BYRN: 54.2% * BYRN: 291% * AXON: 5.8x * AXON: 62.7% © AXON: 27% + WRAP: 5.3x, * WRAP: 25.8%, * WRAP: 141% Right Product For The Times Reducegu
Slide 29: Expanded Management Team to Support Growth
EXPANDED MANAGEMENT TEAM TO SUPPORT GROWTH ~ Bryan Ganz Brian @ David Luan Lisa Terando North Pham Wager ge: ie -p ak: experence André i Michael Buys Sandra Meter. Driscoll Wager
Slide 30: EBITDA Reconciliation
‘BITDA RECONCILIATION (to chousards) Depreciation nd amortization expense ‘Stock-based compensation expense “Accretion of debt discounts Forgiveness of PPPioan
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