Smith & Wesson Brands, Inc. · NASDAQ:SWBI
Smith & Wesson Brands — Investor Day (June 2021)
25 slides from Smith & Wesson Brands's investor day presentation, Jun 21, 2021
Slide 1: Empowering Americans
Exhibit 99.1 > -EMPOWERING AMERICANS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, among other
Slide 3: Year in Review
YEAR IN REVIEW NE ae (684.6% Ferroas percentage revenue Profits shared with ng a oe M_ 22M | 2.6M Views <> | wu EE tS? a ro ee = Cr) <—) = ~~» First time visitors of to our website’ GUNSMARTS videos? FY21, a 68% increase YoY Total firearms shipped during
Slide 4: In a year of turmoil, we gained market share in a cyclical industry
In a year of turmoil, we gained market share in a cyclical indu: YEAR IN REVIEW - on 114% Smith &Wesson’ 411% 7 outpaced NICS ' F a121 S&W ry ahipeed growth vs NICS growth’ _. 3
Slide 5: A return to our roots
A return to our roots « Singular focus - Simplification of the business - Execution & results - SWERE JUST GETTING STARTED.
Slide 6: Large and Growing
LARGE AND GROWING ADDRESSABLE $5.2B TTL ADDRESSABLE MARKET’ | FIREARMS MARKET 5.25% 20 YR CAGR® annual flit cfiearih market based on shipments ts: $2.9B for handguns and $2.3B for long guns. y ADJUSTED NICS GROWTH + Estimated 66 million gun owners in the US. First time buyers, minorities, and women
Slide 7: S&W Growth Lanes
S&W GROWTH LANES CORE INNOVATION + Handguns & MSR’s New products to enthusiasts NEW GROWTH ee Intapped markets NEW CONSUMERS +8 million & growing! + Estimated $408 lifetime value? FIREARMS ACER CIES) Gun perk coe Manufecturing sevice
Slide 8: Keys to Success
| KEYS T0 SUCCESS INCREASED MARKET SHARE BUSINESS SIMPLICITY MARKET LEADING PRODUCT PORTFOLIO SHAREHOLDER RETURN FLEXIBLE MARKETING pied MANUFAGTURING DRIVEN A. & FOUNDATION ENGAGED EMPLOYEES & CULTURE NON-NEGOTIABLES COMPLIANCE 2ND AMENDMENT SAFETY BUSINESS ETHICS
Slide 9: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Mark Smith | Deana McPherson | Sue Cupero | Rob Cicero President & CEO EVP, CFO & Treasurer Vice President, Sales Sr. VP, General Counsel, Chief Compliance Officer & Secretary Kyle Tengwall Kathy Salvador | ‘Steve Rowley | Luc Hardyn Vice President, St. Director, i it Vic
Slide 10: Flexible Manufacturing
FLEXIBLE MANUFACTURING Built in ability to react faster MAXIMIZE SURGES WITH Rearipiaoan Emaoimes Capratiolaseen OUTSOURCED SUPPLIERS 4 10-Year EBITDAS Average 23.6% FZ) FYI3)FYI4«FYIS)FYI6 «FYI7.«FYI8.FY19.«FY20—FY24
Slide 11: Marketing: Brand advantages
& ‘MaRKETNG, r advantages... 85% ARE LIKELY TO RECOMMEND 63% HAVE USED S&W FIREARMS MOST OWNED 37% OWN10R MORE S&W FIREARMS “~=¢ BEST BRAND HIGHEST IN QUALITY
Slide 12: Marketing: Purpose, Mission, Vision
MARKETING, Core Values Reason for Being Empowering Americans Since 1852 Purpose Equip, educate, and encourage Americans Smith & Wesson has empowered Americans to own firearms for personal protection and the with the security and confidence to pursue lifelong enjoyment of shooting. their goals and de
Slide 13: Video link
https://youtu.be/QvG96wlKoD4 12
Slide 14: Consumer reaction to brand video
_ “video was about good values OWOrf and looking out for each other.” be Nine - Experienced gun buyer bel 5 ow 7 ry ” What consumers felt... ' F ing and 9 rn - Novice gun owner Believable °% Relevant 74% Important 11% “,..made me want to learn more about the Talkingtome 70% Would purchase 64% brand
Slide 15: A brand that is trusted by all gun owners
| MARKETING. A brand that is trusted by all Gun Owners Serve core consumers Our enthusiasts are our largest segment and most loyal brand amk 1 Their ‘d-of- ith is sought out by the gun curious. Attract more 1st time gun buyers Our research has painted a clear picture of the gun curious and 1st time
Slide 16: Marketing
| MARKETING
Slide 17: Marketing: Consumer needs throughout the pathway
MARKETING Identify and understand consumer needs throughout the pathway. From 40%+ Of first time buyers Made their last purchase at an independent gun store? $650 Average spend el ani minorities in 2020' per firearm? 15%* Say personal protection is a reason to own? 64% Use their firearm at least onc
Slide 18: Marketing: Targeted marketing along the pathway
MARKETING Es Competence GUN BUYER Welcome to the journey Targeted marketing moves them along the pathway Comfort + GUNSMARTS + Website recesay (GunBuilder) \ + Increase reach via mainstream platforms + Improve retail experience Competence + GUNSMARTS + Retail events / trainin + Professional shooting
Slide 19: Video link
https://youtu.be/SlmHcXiIapM
Slide 20: Marketing: 360° Marketing Approach
MARKETING, = D BUYER Y Moan 360° Marketing Approach + Relevant & targeted messaging dy GUNSMART VIDEOS + Consistency across platforms + Prolific content generation | » ESTEE CUSTOMER A SERVICE
Slide 21: Marketing: Two-pronged approach
MARKETING, TWO-PRONGED APPROACH Identify & Address Identify & Address Existing Unmet Consumer Needs Market White Space + Lowest risk + Largest opportunity potential + Expand market by + Steal market share; generating new segments make it better; make more + Leverage brand reputation SPEED TO MARKET
Slide 22: Efficiency Through Automation
EFFICIENCY THROUGH AUTOMATION Operations Back Office + Efficiency . Traceability / Compliance + Quality / ae a + Shipping capacity + Modernize back office technology + Throughput + Flexibility + Al driven consumer insights + Sophistication in business analytics 21
Slide 23: No matter what happens
so CIMIATTER WHAT HAPPENS. ¥ + 20% - 30% EBITDAS ae + 32% - 42% Gross Margin ai Flexible Manufacturing — o " / “ae 4 rt Marketing ~ Balance + $100M+ Cash on Hand Driven Sheet $0 Debt 44 Efficiency Capital nrouat Allocation utomation
Slide 24: Smith & Wesson
(@) Smith aWesson
Slide 25: S&W Analyst Day Presentation: Data Sources
S&W Analyst Day Presentation Data Sources Year in Review (pgs. 2) (1) Smith & Wesson Google analytics data, Fiscal year 2021 (2) Smith & Wesson social media analytics data, 2020-2021 Year in Review (pgs. 3) (1) National Sporting Shooting Foundation (NSSF) Adjusted NICS data, Fiscal year 2021 Large A