Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Presentation (December 2011)
17 slides from Smith & Wesson Brands's investor presentation, Dec 9, 2011
Slide 1: Smith & Wesson Holding Corp Investor Presentation December 2011
1 NASDAQ Global Select: SWHC James Debney, President & CEO Jeffrey Buchanan, EVP, CFO December, 2011
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include but are not
Slide 3: Highlights
Highlights U.S. Market Leader: Handguns, Modern Sporting Rifles Q2 FY2012: Firearms sales growth: 10.5% Firearms unit growth 27% vs. market growth of 12.6% (Adjusted NICS) Diverse sales sources: Consumer Professional: International, Law Enforcement, Government, Military Innovative products Healthy B
Slide 4: Experienced Management Team
Experienced Management Team James Debney, President & CEO 20+ years: multinational consumer and business-to- business environments including President of Presto Products Co., a $500 million business unit of Alcoa Consumer Products Jeffrey Buchanan, EVP & CFO 25+ years: private and public company exp
Slide 5: Experienced Management Team
Experienced Management Team 5 Mario Pasantes Sr. VP Marketing and Global Professional Sales Alcoa, Inc. Coca-Cola Pillsbury International Market Development Strong Global Brands Strategy Customer Development Mark Smith VP Manufacturing and Supply Chain Management Alvarez & Marsal Ecolab Multi-Site O
Slide 6: Vision / Mission
Vision / Mission 6 Our Vision: The leading firearms manufacturer Our Mission: To allow our employees to design, produce, and market high quality, innovative firearms that meet the needs and desires of our consumer and professional customers
Slide 7: Heritage
Heritage 159 years of rich history Iconic brand with 93% aided awareness Smith & Wesson(r) Brand = Revolver Strategy is a focus back on firearms Sale of Security Solutions Consumer versus professional markets M&P(tm) as a brand and a product platform: Pistols and modern sporting rifles Operations: F
Slide 8: Adjusted NICS Checks
*National Shooting Sports Foundation (NSSF) adjusts FBI NICS data to eliminate background checks associated with permit applications and checks on active CCW permit databases, in order to provide a more accurate picture of market conditions. Adjusted NICS Checks* Reflects strength in consumer market
Slide 9: Industry: Handguns Driving Industry Growth
Industry: Handguns Driving Industry Growth Category growth of over 50% in the past 5 years driven by handguns Category growth of over 50% in the past 5 years driven by handguns Source: Federal Excise Tax collections, Wholesale Value *Long guns include all rifles, shotguns and muzzle loaders 9
Slide 10: Industry: Pistols Driving Handgun Growth
Industry: Pistols Driving Handgun Growth U.S. handgun growth has been driven by pistols, which now represent 80% of the units sold now represent 80% of the units sold now represent 80% of the units sold Source: BATF annual firearms mfg and export report. USITC import data. 10
Slide 11: Industry: Pistols vs. Revolvers
Industry: Pistols vs. Revolvers Pistols & revolvers have different strengths and weaknesses, but pistols win on self defense Pistols are attracting younger consumers into the handgun market Pistol advantages versus revolvers: Capacity Rate of fire High tech/cutting edge Modern shape Trigger pull Saf
Slide 12: A Transformation 2005 2011
A Transformation 12 2005 2011
Slide 13: Innovative New Products
Innovative New Products 13 13
Slide 14: Firearms Growth Drivers
Firearms Growth Drivers Consumer Market - 1HFY12 Sales +17.0% Concealed Carry, Personal Protection, Modern Sporting Rifles Expand Market Share: Polymer Pistol Unit Growth of 69.6% (M&P(tm), BODYGUARD(r), The Sigma Series(r)) Robust New Product Pipeline: Governor, BODYGUARD, M&P Sport Halo Effect fro
Slide 15: SWHC: Financial Highlights (From Continuing Operations)
SWHC: Financial Highlights (From Continuing Operations) 15 Fiscal Year April 30 Sales Q2FY12 Actual: Sales $92.3M (+10.5%) Backlog $149.9M Gross Profit Margin 26.7% Op. Expense $21.2M Working capital $84.3M Cash $49.2M Q3FY12 Guidance: Sales $92.0M - $96.0M Gross Profit Margin Approx. 30.0% Op. Expe
Slide 16: Our Targeted Direction: Focus on Firearms
Our Targeted Direction: Focus on Firearms 16 Grow sales Increase profitability Improve gross margins Expand manufacturing capacity intelligently Reduce expenses on a company-wide basis Maintain robust new product pipeline Leverage existing product portfolio Divest Security Solutions business (curren
Slide 17: NASDAQ Global Select: SWHC
17 NASDAQ Global Select: SWHC December, 2011
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