Outdoor Holding Company · NASDAQ:POWW
Outdoor — Non-Deal Roadshow (August 2024)
36 slides from Outdoor's roadshow presentation, Aug 22, 2024
Slide 1: Cover
ste Nasdaq Garrats INCORPORATED POWW
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: Business Overview Day
Business Overview DAY POWW March 21, 2023 POWW 3
Slide 4: Introduction and Roadmap
Introduction and Roadmap October 2016 October 2018 March 2020 Fred Wagenhals founds AMMO acquires SW The Company expands AMMO, Inc. Kenetics and armor manufacturing capabilities in piercing projectile Arizona and Wisconsin to meet December 2016 patented technology significant increase in demand AMMO
Slide 5: FAET Tax Data 2012 - 2022
FAET Tax Data 2012 - 2022 $1,400,000,000.00 $1,200,000,000.00 $1,000,000,000.00 $800,000,000.00 $600,000,000.00 $400,000,000.00 $200,000,000.00 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PIS/REV SUM LONG GUNS AMMO/SHELLS SUM POWW 5
Slide 6: FAET Tax Data 2018 - 2023
FAET Tax Data 2018 - 2023 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 PIS/REV SUM LONG GUNS
Slide 7: Introduction – Ammo Inc.
Introduction – Ammo Inc. ONE MARKET / TWO COMPANIES / UNIQUE CAPABILITIES AMMO (MANUFACTURING) GUNBROKER.COM (TECH) 185,00 SQ FT FACILITY PROPRIETARY OPERATING PLATFORM • Leading OEM rifle/pistol brass manufacturer in the US • GunBroker.com developed its own proprietary source code to • Capacity and
Slide 8: 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 9: 2023 Ammo Accomplishments
2023 Ammo Accomplishments • Built out brass sales and path to profitability Products • Executed 3-year contract with major strategic partner • Established New Product Portfolio • Implemented Strategic Account Mgmt. (SAM) Mkt/Channels • Reduced risk through channel/partner alignment– • AR / Cash Bala
Slide 10: 2023 GB Accomplishments
2023 GB Accomplishments • Launched Customer Acquisition tool via email & social Products platforms • Extension of Analytic Tools into key accounts • Collectible market growing showing strength in downturn Mkt/Channels • Firearm ecommerce showing consolidation of traffic • YOY 30.2% more site visits
Slide 11: GunBroker.com
GunBroker.com POWW March 21, 2023 POWW 11
Slide 12: Profitable Growth
GunBroker.com Build out Years 4-5 3 to 5 Year View Long-term Years 2-3 • Expand Service offerings • Forecasting Profitable Growth Year 1 Mid-term • Social engagement • Marketing/Advertising Services Model • Establish new markets Near-term • Financing of Cart • Fishing and Off-Road (example) • Organi
Slide 13: The Transaction – Today/Tomorrow
The Transaction – Today/Tomorrow BUYER SELLER Revenue Model Today TODAY Take Rate 5-6% of transaction FFL Exchange Limited Advertising Revenue Model Fall 2023 Take Rate Advertising MULTIPLE SELLERS Content Creation Analytics BUYER CC processing Internalized CC Processing Future Revenue Sources in 20
Slide 14: Market Dynamics
Market Dynamics 38% of all 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 U
Slide 15: Industry KPI Comparison
Industry KPI Comparison GunBroker.com top ranking in the Outdoor Space • Market leader in monthly visits • Market leader in duration/ length of visit • Market leader in number of pages visited • Lowest Bounce rate March 21, 2023 POWW POWW 15
Slide 16: Marketing Lifestyle Campaigns
Marketing Lifestyle Campaigns Lifestyle campaigns are the backbone of our marketing communications. They get populated into: • Landing pages • Hero Cards • Broadcast Emails • Targeted emails – browse abandonment • House Ad Campaigns • Offsite Ad Campaigns POWW
Slide 17: Marketing Lifestyle Campaigns
Marketing Lifestyle Campaigns Target unique consumer personas – 126 current campaigns and growing POWW https://www.gunbroker.com/c/a/gunbroker-lifestyle/
Slide 18: Ammo Division
Ammo Division Ammunition Division POWW 18
Slide 19: Ammunition Division
Ammunition Division POWW 19
Slide 20: 2023 Global Addressable Market
2023 Global Addressable Market $68.57B 2023 Global Ammunition Market 14% 68% (Excluding Russia & China) North America Europe 13% $13.29B 5% Asia Pacific 2023 Addressable Market Africa/Mideast Small Caliber - Centerfire (Excluding Russia & China) 1% Central & South America $16.86B 2027 Addressable Ma
Slide 21: Competitive Landscape
Competitive Landscape Competition Positioning Comments • Ammo division stock split from outdoor group – Strong • Supplier of primers and purchasing brass from Ammo Inc. Continue to Performer but heavy OH’s with cost of Remington. build relationships • Predatory Pricing, consistently lowest price on
Slide 22: Profitable Growth
Ammunition Division Years 4-5 3 to 5 Year View Long-term Years 2-3 • New products Profitable Growth • Portfolio expansion in premium rifle YEAR 1 Mid-term • Acquisitions/divestitures • New products • Projectile Manufacturers Near-term • Primer Manufacturers • Build superior brand around rifle • Orga
Slide 23: 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 24: Strategic Account Management
Strategic Account Management ONLINE / RETAIL SHOOTING RANGES DISTRIBUTORS BUYING GROUPS POWW 24
Slide 25: Sales & Channel Management
Sales & Channel Management Expand channels and presence with targeted initiatives and new products Objectives Initiatives Deliverables • Sales plan of $100+ M • Standardization of Strategic Account Mgmt. • Build and expand Ammo’s “fair share” in the marketplace • Pistol marginality +5% • Strategic A
Slide 26: 2024 Target: Categories and Margins
2024 Target: Categories and Margins 40% 35% 30% 25% 20% 15% 10% 5% 0% Pistol Ammo Rifle Ammo Brass - Pistol Brass - Rifle Military Percent of Business 27% 22% 10% 38% 0.05% Margin % 9.50% 11% 15.90% 36.70% POWW 26
Slide 27: Gross Margin Improvement
Gross Margin Improvement • Shift in sales mix with higher focus on Casings 12.0% 10.0% • Approximate 12% margin increase 8.0% over 6 months 6.0% 4.0% • Anticipate margins continuing to 2.0% 0.0% increase -2.0% • More efficient operating model -4.0% Q3 FY 2023 Q1 FY 2024 Gross Margin -2.5% 9.5% POWW
Slide 28: Proof of Performance: Inventories
Proof of Performance Inventories (FG, RM, WIP) INVENTORIES JANUARY TO JUNE INV RM INV WIP INV FG INV TOTAL Progress over Six Months: • 29.9% Decrease in Raw Materials • 10.1% Decrease in Finished Goods • 1.7% Increase in Work in Progress POWW 28
Slide 29: Rebranding – Ammo Inc.
Rebranding – Ammo Inc. • Premium storefront box layout ⎼ Readable from 10 feet ⎼ Cleary depicts metrics and drop chart • Metrics bar on three sides for better merchandising • Brighter Text for visibility to consumer. • Proper language and packaging requirements for international sales. POWW 29
Slide 30: Rebranding - Continued
Rebranding - Continued Prominent Build matrix on back panel • Made in USA/WI • Sense of pride with employees • Positions superior components • Clear Ballistic Data POWW 30
Slide 31: Calibers Produced in House
Calibers Produced in House Rifle Pistol • 50BMG • 9mm • 12.7 X 108 • 25Auto • 338 Lapua • 32Auto • 338 Norma Magnum • 380Auto • 300 Norma Magnum • 38SPL • 7mm PRC - New • 38SUPER • 6.5mm PRC • 357M • 300WM • 40SW • 7REM MAG • 45Auto • 6MM ARC • 44 MAG • 45-70 • 45 LC • 350 Legend • 450 BM - New • 30
Slide 32: Calibers Produced in House
Calibers Produced in House Rifle • Rifle • 308 • 7.62 X 39 • 22-250 • 5.45 X 39 - NP • 7mm-08 • 6.5 CM • 243 • 6mm CM • 6.8 X 51 • 6.5 Grendel • 30-06 • 6mm Arc • 270 • 4.6 • 25-06 • 35 Whelan - NP Pistol • 350 Legend - NP • 25 Auto • 45-70 - NP • 32 Auto • 357 Sig POWW 32
Slide 33: Summary
SUMMARY AMMO (MANUFACTURING) GUNBROKER.COM (TECH) • RIGHT PATH FOR HARD TIMES • ENHANCED PLATFORM TO CART DRIVES TRANSFORMATIVE REVENUE CREATION • BUILDING BLOCKS FOR SUCCESS ARE LAID • ACCURATE FORECASTING CREATES OPPORTUNITY • STRATEGICALLY PIVOTING TO HIGHER MARGINS AND MANAGES MARKET EXPECTATION
Slide 34: March 21, 2023
ste Nasdaq Garrats INCORPORATED POWW
Slide 35: Appendix
INCORPORATED BROKER.COM
Slide 36: Market Share: GunBroker vs NICS
Market Share: GunBroker vs NICS 5.6% National Instant Criminal Background Check System (NICS): The NICS conducts background checks on people who want to own a firearm or explosive, as required by law. POWW
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