Outdoor Holding Company · NASDAQ:POWW
Outdoor — Roth Conference 2023
26 slides from Outdoor's conference presentation, March 2023
Slide 1: Roth Conference March 2023
ROTH CONFERENCE MARCH 2023 POWW Dana Point, CA POWW 1
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: Introduction – Ammo Inc.: Reasons to Listen
Introduction – Ammo Inc. REASONS TO LISTEN AMMO (MANUFACTURING) GUNBROKER.COM (TECH) NEW 185,000 SQ FT. MANUFACTURING FACILITY $1 + BILLION ANNUAL MERCHANDISE SALES DOUBLES CAPACITY STRATEGIC PIVOT TO HIGHER MARGIN DEEP 80+% GROSS PROFIT MARGIN FROM MERCHANDISE DRAW RIFLE BRASS PRODUCTS FEE REVENUE
Slide 4: Introduction
Introduction October 2018 March 2020 October 2016 AMMO acquires SW The Company expands manufacturing Fred Wagenhals founds Kenetics and armor capabilities in Arizona and Wisconsin to meet AMMO, Inc. piercing projectile significant increase in demand from patented technology commercial customers Dece
Slide 5: Introduction – Ammo Inc.: One Market / Two Companies
Introduction – Ammo Inc. ONE MARKET / TWO COMPANIES / UNIQUE CAPABILITIES AMMO (MANUFACTURING) GUNBROKER.COM (TECH) 185,00 SQ FT FACILITY PROPRIETARY OPERATING PLATFORM • Leading rifle brass manufacturer in the US • GunBroker.com developed its own proprietary source code to • 750M -1B pistol and rif
Slide 6: Market Opportunity
Market Opportunity AMMUNITION MARKET GUNBROKER.COM GROWING INTERNATIONAL DEMAND INCREASED CUSTOMER BASE • $22.35B global ammunition market in 2021 and • 70% of the US Population shops online1 estimated to reach $23.30B in 2030 • Marketplace ecommerce sales were forecast to hit ⎼ $12B in Small Calibe
Slide 7: POWW
POWW POWW 7
Slide 8: 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 500 Gun to Buyer FFL typically Seller on GunBroker.com Ranked in the USA for Traffic charges Buyer a Transfer Fee
Slide 9: Technology Leads our Innovation
Technology Leads our Innovation Site Capabilities: • Cloud based technology scales, minimizes downtime and operating expenses • GunBroker.com uses leading edge CDN and Firewalls to protect customer data • New Auction Lengths • Search Results Restructure ⎼ Bigger Pictures ⎼ Better Pricing Display ⎼ P
Slide 10: Market Dynamics
Market Dynamics 38% 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 Firearm Sold in the US 20222 • Seller Solutions 268 Million • Building Brand Awareness Digital Buyers in US • New
Slide 11: Customer Experience
Customer Experience Enhancing the experience through key strategic initiatives • Seamless transactions following all Shopping Cart Recommendations regulatory requirements • Suggested Products based on interests and prior purchases • Consign or sell Firearms with GunBroker Valet… the work is Abandonm
Slide 12: Seller Solutions
Seller Solutions Bringing the seller tools and traffic to drive conversions • Maximize margins on used inventory Analytics Seller Stores using platform analytics • Seller Stores provide a platform for Sellers to promote their listings • Self Service Advertising lets sellers promote listings on site
Slide 13: Building Brand Awareness
Building Brand Awareness Expanding the reach and upgrading content to add revenue Building the GunBroker.com Brand Article Content Marketing Campaigns • Content Creation for Product Awareness • Emails that matter and resonate with the consumer Video Creation Syndication • Lifestyle campaigns that ma
Slide 14: Revenue Opportunities
Revenue Opportunities UNIFIED PAYMENT EXPERIENCE ADVERTISING PACKAGES Payment Processing Advertising Programs customized to fit any budget • Tiered fee rates for volume sellers • Selling banner ads to manufacturers • Fee and tax collection at point of sale rather • Selling banners to large sellers o
Slide 15: The Transaction – Today/Tomorrow
The Transaction – Today/Tomorrow SELLER BUYER Revenue Model Today TODAY Take Rate 5-6% of transaction Limited Advertising FFL Exchange Revenue Model Summer 2023 Take Rate Advertising MULTIPLE SELLERS Content Creation Analytics CC processing BUYER Internalized CC Processing 2023/2024 Future Revenue S
Slide 16: Transition in the Business
TRANSITION IN THE BUSINESS POWW 16
Slide 17: Profitable Growth
Ammunition Division 3 to 5 Year View Years 4-5 Long-term Years 2-3 • New products Profitable Growth • Portfolio expansion in premium rifle YEAR 1 Mid-term • New products • New products • Acquisitions/divestitures Near-term • Build superior brand around rifle • Capacity expansion • Organizational ali
Slide 18: 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 19: Rebrand - Concept
Rebrand - Concept • Premium store front box layout ⎼ Readable from 10 feet ⎼ Cleary depicts metrics and drop chart • Metrics bar on three sides for better merchandising POWW 19
Slide 20: Strategic Account Management
Strategic Account Management ONLINE / RETAIL SHOOTING RANGES DISTRIBUTORS BUYING GROUPS POWW 20
Slide 21: Global Addressable Market
Global Addressable Market $22.35B 2020 Global Ammunition Market 43% 23% North America Europe 16% $12B 15% Asia Pacific Africa/Mideast 2022 Addressable Market Small Caliber 3% (Excluding Russia & China) Central & South America 3.2% CAGR 2022-2030 Excluding Russia & China (Excluding Russia & China) Gr
Slide 22: Pivot to Higher Margin Product Mix
Pivot to Higher Margin Product Mix AMMO INC. PRODUCT MIX Q4 2023 PIVOT – 2024 FUTURE PRODUCT MIX 15% 37% 36% 44% 41% 27% Pistol (9mm) Rifle (223/308) Brass Sales Pistol (44/45LC/38/357) Rifle (6.5CM/7mm PRC) Brass Sales POWW 22
Slide 23: Summary
SUMMARY AMMO (MANUFACTURING) GUNBROKER.COM (TECH) NEW 185,000 SQ FT. MANUFACTURING FACILITY ENHANCED PLATFORM TO CART DRIVES DOUBLES CAPACITY TRANSFORMATIVE REVENUE CREATION STRATEGIC PIVOT TO HIGHER MARGIN DEEP LARGEST FIREARM SALES PLATFORM NATIONALLY DRAW RIFLE BRASS PRODUCTS DRAWS NEW SELLERS/BU
Slide 24: POWW
“= BROKER.COM ae
Slide 25: Appendix
BROKER.COM
Slide 26: Calibers Produced
Calibers Produced Rifle Pistol • 50BMG • 9mm • 12.7 X 108 • 380 • 338 Lapua • 38 • 338 Norma Magnum • 357 • 300 Norma Magnum • 40 • 7mm PRC • 45 • 300WM • 44 MAG • 7REM MAG • 45 LG • 7.62 X 51 • 450 BM • 300BLK • 10MM • 5.56 • 44S&W • Much More… • Much More… POWW 26