Slide 1: STURM, RUGER & CO., INC. 2011 Annual Meeting
STURM, RUGER & CO., INC. 2011 Annual Meeting
Slide 2: Caution: Forward Looking Statements
Caution: Forward Looking Statements Statements made in the course of this meeting that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results could differ mate
Slide 3: Investment Highlights
Investment Highlights * 62 years as one of the world’s leading firearms brands. ¢ Experienced and engaged Board of Directors. ¢ Strong management team. ¢ Strong market position in rifles, revolvers and pistols. * Ongoing commitment to new product development. ¢ We have maintained our market share ga
Slide 4: Company Profile
Company Profile ¢ Trailing 12-month sales: $262 million, EPS: $1.46 (ending 4/2/11). ¢ Manufacturing facilities in Newport, NH and Prescott, AZ. ¢ Engineering satellite office in Enfield, CT. * Corporate office in Southport, CT. ¢ 1,200 non-union employees, plus 100-150 temporary employees. ¢ Invest
Slide 5: Financial and Operational Highlights
Financial and Operational Highlights Q RUGER
Slide 6: Consolidated Operating Results
Consolidated Operating Results (nminions, except EPS) Revenues Gross Margin Operating Profit EPS 2011 2010 ai a4 a3 Q2 a1 $75.4 $64.1 $58.4 $64.4 $68.3 $24.0 $20.5 $18.6 $21.7 $23.1 $12.5 $8.6 $9.3 $12.6 $12.9 16.5% 13.4% 15.9% 19.6% 18.9% $0.42 $0.30 $0.32 $0.43 $0.44 RUGER
Slide 7: Comparison of Underlying Performance
Comparison of Underlying Performance (nThousanas) 2011 2010 Qi a4 Q3 Q2 ai Reported $12,458 $8,569 $9,309 $12,637 $12,900 Operating Profit Adjustments LIFO (590) (1,264) 632 (285) (122) O/H Rate 158 (584) 298 62 (394) D/L Rate 156 (98) (132) (79) (55) E&0 reserve (125) (365) (378) 447 (761) Frozen D
Slide 8: Comparison of Underlying Performance
Comparison of Underlying Performance (nThousanas) 2011 2010 qi a4 Q3 Q2 qi Reported $12,458 $8,569 $9,309 $12,637 $12,900 Operating Profit Adjustments LIFO (590) (1,264) 632 (285) (122) O/H Rate 158 (584) 298 62 (394) D/L Rate 156 (98) (132) (79) (55) E&0 reserve (125) (365) (378) 447 (761) Frozen D
Slide 9: Return on Shareholders' Equity
Return on Shareholders’ Equity ¢n minions) $120 $100 $80 $60 $40 " i i _ a Oo 2006 2007 2008 2009 2010 Hy = Net income Q RUGER
Slide 10: Return on Shareholders' Equity
Return on Shareholders’ Equity ¢nmitions) lui 2006 2007 2008 2009 2010 Ey = Net income B= Eauity Q RUG
Slide 11: Return on Shareholders' Equity
Return on Shareholders’ Equity ¢nmitions) 2007 2008 2009 Hi = Net Income Hi = Equity ems = ROE ® RUG
Slide 12: Market Conditions
Market Conditions
Slide 13: Bookings (in units)
Bookings (in units) 600,000 500,000 400,000 300,000 200,000 100,000 Qi a2 Q3 a4 Qi a2 a3 a4 Qi a2 a3 a4 Qi a2 a3 a4 a 2007 2008 2009 2010 2011 @ RUGER
Slide 14: Bookings & Distributor Sell-Through
Bookings & Distributor Sell-Through (a units) 600,000 500,000 400,000 300,000 200,000 100,000 Q1 Q2 Q3 04 Q1 Q2 Q3 04 Q1 Q2 Q3 04 Q1 Q2 Q3 04 Qi 2007 2008 2009 2010 2011 == = Bookings eee = Distributor Sell-Through Q RUGER
Slide 15: Trends in Retail Demand
Trends in Retail Demand (in thousands) 12,000 10,000 Adjusted NICS 19% Growth 6,000 ADJUSTED NICS 4,000 2,000 2006 2007 2008 2009 2010 The adjusted National Instant Criminal Background Check System data presented above was adjusted by the National : Shooting Sports Foundation to eliminate background
Slide 16: Trends in Retail Demand
Trends in Retail Demand (in thousands) 12,000 1,000 Ruger 83% Growth 900 10,000 = d 800 & 700 = 8 8,000 = Ss 1 = Adjusted NICS 19% Growth 6° 3 6,000 500 & g s 2 400 £ = 4,000 zB ’ 300 = & 2,000 200 5 100 2006 2007 2008 2009 2010 == = Adjusted NICS seee= = Distributor Sell-Through The adjusted Nation
Slide 17: Quarterly Trends in Retail Demand
Quarterly Trends in Retail Demand (in thousands) 3,500 300 3,000 250 & 2,500 = g” 200 = = © 2,000 z rr] 150 ” S 1,500 3 5 2 100 2 1,000 = B 500 50 5 2006 2007 2008 2009 2010 2011 === = Adjusted NICS e=ee= = Distributor Sell-Through The adjusted National Instant Criminal Background Check System data
Slide 18: Market Share Movement
Market Share Movement Product Category 2009 Single-Action Revolvers Maintained Double-Action Revolvers (LCR) Gained Rimfire Pistols Maintained Centerfire Full-Size (SR9) Maintained Centerfire Compact (LCP) Gained Mini-14 Rifles Maintained Hunting Rifles Maintained Rimfire Rifles Gained Modern Sporti
Slide 19: Market Share Movement
Market Share Movement Product Category 2009 2010 Single-Action Revolvers Maintained Maintained Double-Action Revolvers (LCR) Gained Maintained Rimfire Pistols Maintained Maintained Centerfire Full-Size (SR9 & SR40) Maintained Maintained Centerfire Compact (LCP & SR9c) Gained Gained Mini-14 Rifles Ma
Slide 20: New Product Development
New Product Development
Slide 21: Highlighted New Products: 2010 & YTD 2011 New Platform Products
Highlighted New Products: 2010 & YTD 2011 3 New Platform Products LC9/ Scout Rifle / SR1911 31 New Product Derivatives Including the LCR-357 / SR9c / SR40 91 Distributor Specials Including the 100 Anniversary BSA 10/22 RUGER
Slide 22: Slide 22
Slide 23: Slide 23
Slide 24: Ruger LCR-357
(@) me = —s — ron 4 = “ | : j : | C | . THE RUGER’ LCR-357
Slide 25: The Ruger
C= ‘e f THE RUGER EGS
Slide 26: The Gunsite Scout Rifle
THE GUNSITE SGOUT RIFLE
Slide 27: Ruger SR1911
4S AUTO PRESCOT AZ RUGER ® SRI9TT 670-02465
Slide 28: 10/22 Boy Scout Rifle
THE 10/22 BOY SCOUT RIFLE
Slide 29: Slide 29
Slide 30: New Product Impact
New Product Impact 2010 New Product Impact New Products 25% Mature Products 75% RUGER
Slide 31: New Product Impact
New Product Impact 2010 New Product Impact 2011 Q1 New Product Impact New New Products Products 25% 29% Mature Mature Products Products 75% 71% RUGER
Slide 32: Recognition & Media Coverage
Recognition & Media Coverage Q RUGER
Slide 33: Ruger Handgun of the Year awards
Ruger SR9c~ Pistol Ruger LCR™ Revolver Rilgere Cr Pistol | Ruger® LCP— 2008 Handgun of the Year Ruger® LCR™— 2009 Handgun of the Year Ruger® SR9c™— 2010 Handgun of the Year One company continues to produce American-Made firearms that impress and perform at all levels — and the award-winning Ruger® C
Slide 34: Editorial Coverage
Editorial Coverage FOR LAW ENFORCEMENT Raper’ New ‘ry cvn oown red a ne me moat 10 ce. 208 Riri RUGER’S nm A NEW PISTON RIFLE WITH MORE PUNCH & POWER HOW DO THE UTTLE MAGS COMPARE? AR-15 MOUNTS (GREAT NEW ‘OPTICS SOLUTIONS STEYR&ZEISS A PRECISION BOLT RIG “ANSCHUTZ 170.223 MERKEL KR | ' (NRA SHOOTIN
Slide 35: Editorial Coverage
Editorial Coverage CONCEALED CARRY HANDGUNS PocelPle nits = RUGER LC9 Sum = SOW BODYGUARD peut We ton = POCKET BUTO ae a. TAURUS oes J socks ~ ci iraanse werk yy D-HITTING HOME DEFENSE CARRY Shotgun Loads 45 PEACE OF MIND > Scauye pow GUN TESTS Pfr 91122 eueacy ‘ 2 < Siren! ACCURATE 308s Les Bers ti
Slide 36: Liquidity
Liquidity
Slide 37: Inventory Turns
Inventory Turns | 2007 2008 2009
Slide 38: Inventory Reduction
Inventory Reduction (in Mitiions) September December September December By = Raw Materials & WIP i = Finished Goods
Slide 39: Finished Goods Seasonality
hed Goods Seasonality (in mitiions) mis F $25 $20 $15 $10 yore HE sequiaceq MEE 20qwaides unr yore) 5 2 = cy 3 o a Jaquiaydas aun Yue, Jaquiasaq Jaquiaydas aun your Jaquiasag Jaquaydas aunr yore Jaquiedaq Jaquiaydes aunr youeiy Jaquiesaq $5 2011 2010 2009 2008 2007 2006 2005 RUGER
Slide 40: Finished Goods Inventory
Finished Goods Inventory (in units 120,000 100,000 80,000 60,000 40,000 20,000 Qi a2 03 04 Q1 02 Q3 04 Qt O2 03 O4 Qi O2 03 O4 1 G2 03 04 = Ot 2006 2007 2008 2009 2010 2011 === = Distributor mee = Ruger Q RUGER
Slide 41: 2010 Capital Allocation
2010 Capital Allocation (in mitiions) i | = Capital Expenditures i | = Increased Corporate Cash IB = Share Repurchases EB = Dividenas More than a third of the $33 million of net cash generated in 2010 was returned to our shareholders in the form of dividends and stock repurchases.
Slide 42: 2010 Capital Allocation
2010 Capital Allocation (in mitions) We Pay Taxes [By = Federal Excise Tax BB = Income Tax [BB = Capital Expenditures || = Increased Corporate Cash [Bl = Share Repurchases Ey = Dividenas
Slide 43: Capital Expenditures: Investing in Top-Line Growth
Capital Expenditures: Investing in Top-Line Growth (in Millions) $20 $18 $16 $14 $12 $10 $8 $6 $4 Hal 2005 2006 2007 2008 2009 2010 2011 (Projected)
Slide 44: Cumulative Dividends Paid
Cumulative Dividends Paid (a minions) Q RUG
Slide 45: Cash Balance
Cash Balance (in mitiions) $80 $70 $72 million $60 $50 : : : Since January 2010, major cash outflows included: $40 * Capital Expenditures ($22 million) * Dividends ($7 million) $30 ¢ Share Repurchases ($8 million) $20 $10 2009 2010 2011 Q RUGER
Slide 46: Cash Balance
Cash Balance (in mitiions) $80 $70 $72 million $60 $50 : : : Since January 2010, major cash outflows included: $40 * Capital Expenditures ($22 million) * Dividends ($7 million) $30 ¢ Share Repurchases ($8 million) $20 : : : : During that time, we increased our cash holdings by $10 $17 million throug
Slide 47: Shares Outstanding
Shares Outstanding (in mitiions) 29 Since September 2006, we repurchased 8.6 million shares (32% of the shares outstanding as of September 2006) for $63 million, an average repurchase price of $7.36 per share. 27 25 23 21 19 17 15 2006 2007 2008 2009 2010 2011 @ RUGER
Slide 48: Investor Communications
Investor Communications We anticipate releasing 2011 quarterly earnings and holding investor conference calls on the following dates: Period Earnings Release Conference Call Q2 2011 July 27, 2011 July 28, 2011 Q3 2011 October 26, 2011 October 27, 2011 Q4 2011 February 22, 2012 February 23, 2012 RUGE
Slide 49: Investment Highlights
Investment Highlights * 62 years as one of the world’s leading firearms brands. ¢ Experienced and engaged Board of Directors. ¢ Strong management team. ¢ Strong market position in rifles, revolvers and pistols. * Ongoing commitment to new product development. ¢ We have maintained our market share ga
Slide 50: Next Stop: NRA Show
Next Stop: NRA Show
Slide 51: Questions
Questions
Slide 52: Caution: Forward Looking Statements
Caution: Forward Looking Statements Statements made in the course of this meeting that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results could differ mate
Slide 53: STURM, RUGER & CO., INC. Thank You
® STURM, RUGER & CO., INC. Thank You