Slide 1: AMMO, Inc. (Nasdaq: POWW)
7 Nasdaq 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
Business Overview INCORPORATED Nasdaq poww
Slide 4: Introduction and Roadmap
Introduction and Roadmap ammo ‘October 2016 October 2018 March 2020 Fred Wagenhals founds AMMO acquires Sw |The Company expands AMMO, Inc. Kenetics and armor | manufacturing capabilities in tile i Decamibera0ie piercing project Arizona and Wisconsin to meet patented technology | significant increase
Slide 5: FAET Tax Data 2012 - 2022
FAET Tax Data 2012 - 2022 amme- $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 «20142015 201690 2017'S 2018 = 2019S 2020-2021 = 2022 MPIS/REVSUM m®LONGGUNS mAMMO/SHELLS SUM ) Nasdaq poww 5
Slide 6: FAET Tax Data 2018 - 2023
FAET Tax Data 2018 - 2023 amamo 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 : Ql Q2 a3 Q4 Ql Q2 a3 Q4 Qi Q2 a3 Q4 al Q2 a3 Q4 ai Qz a3 a4 aL 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 TMPIS/REVSUM mM
Slide 7: Introduction — Ammo Inc.
Introduction — Ammo Inc. ONE MARKET / TWO COMPANIES / UNIQUE CAPABILITIES AMMO (MANUFACTURING) 185,00 SQ FT FACILITY * Leading OEM rifle/pistol brass manufacturer in the US * Capacity and footprint to scale to 18 PATENTED TECHNOLOGIES * One Way Luminescence (O.W.L.) for pistol and rifle projectiles
Slide 8: Market Opportunity
Market Opportunity AMMUNITION MARKET GROWING INTERNATIONAL DEMAND * $22.35B global ammunition market in 2021 and estimated to reach $23.30B in 2030 — $12B in Small Caliber — 3.2% CAGR 2022- 2030 STRONG DEMAND FOR PREMIUM RIFLE * Customers are looking for flatter, heavier, faster + 7mm PRC, 6.5 CM, 3
Slide 9: 2023 Ammo Accomplishments
2023 Ammo Accomplishments Products Es Mkt/Channels Ss Pricing Industrial < Marketing/Comm’! it Organization Built out brass sales and path to profitability Executed 3-year contract with major strategic partner Established New Product Portfolio Implemented Strategic Account Mgmt. (SAM) Reduced risk t
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 HS Mkt/Channels enone eee oe + Firearm ecommerce showing consolidation of traffic + YOY 30.2% m
Slide 11: GunBroker.com
GunBroker.com Nasdaq poww a
Slide 12: GunBroker.com Build out to Year View
GunBroker.com Build out 3 to 5 Year View Near-term Organizational alignment + Develop centralized CC Processing + Develop Carting Capabilities + Leverage Advertising and Analytics + Transitioned to Pro Active Customer Service Model * Build Seller Engagement Team Profitable Growth Long-term + Expand
Slide 13: The Transaction — Today/Tomorrow
The Transaction — Today/Tomorrow 2023/2024 7? Nasdaq Poww BUYER BUYER FFL Exchange Internalized CC Processing = FFL Exchange SELLER e@ MULTIPLE SELLERS 1” f Revenue Model Today Take Rate 5-6% of transaction Limited Advertising Revenue Model Fall 2023 Take Rate Advertising Content Creation Analytics
Slide 14: Market Dynamics
Market Dynamics 38% of all FFUs are Actively engaged on GunBroker.com* sot Hunt Shoot 16.4 Million Industry Fund ital: dime Le Same Firearm Sold in the US 20227 268 Million Digital Buyers in US in 2022? 10% Growth Overall On-Line ‘Consumer Behavior Ecommerce sales in 2022 (All US Sites)’ Nasdaq poww
Slide 15: Industry KPI Comparison
Industry KPI Comparison © similarweb Domain Monthly Visits Visit Dur jon [Pages/Visits Bounce Rate GunBroker.com top ranking in the Outdoor Space palmettostatearmory.com _12,896,582.41, 538 43.30% * Market leader in monthly visits cabelas.com 12,625,707.56 432 51.08% basspro.com 12,219,385.93 459 49
Slide 16: Marketing Lifestyle Campaigns
Marketing Lifestyle Campaigns os cotetcon an Rifles Chambered in your favorite Pi ° Details Lifestyle campaigns are the D> m- backbone of our marketing ee : communications. They get populated into: PISTOL CALIBER CARBINES PISTOL CALIBER CARBINES + Landing pages * Hero Cards * Broadcast Emails * Targ
Slide 17: Marketing Lifestyle Campaigns
Marketing Lifestyle Campaigns Target unique consumer personas — 126 current campaigns and growing (O] Now THAT's - ANTIQUE FIREARMS: SPRING BEAR SEASON IS HERE RIMFIRE MADNESS ‘TRIBUTE SPECIAL EDITION Seentirek, am ff steep CHIT Nasdaq poww —_ GO HAM! FIGHT THE PRAIRIE. 'D0G REBELLION! New Product S
Slide 18: Ammo Division
Ammo Division Nasdaq poww INCORPORATED
Slide 19: Ammunition Division
Slide 20: 2023 Global Addressable Market
2023 Global Addressable Market $68.57B 2023 Global Ammunition Market (Excluding Russia & China) $13.29B 2023 Addressable Market Small Caliber - Centerfire (Excluding Russia & China) $16.86B 2027 Addressable Market Small Caliber - Centerfire (Excluding Russia & China) Nasdaq poww 14% 68% North Americ
Slide 21: Competitive Landscape
Competitive Landscape Competition Positioning EEDERAL Remington’ * Ammo division stock spit from outdoor group ~ Strong 5 Performer but heavy OH's with cost of Remington. + Predatory Pricing, consistently lowest price on market with PMC + Market Leader on 223/5.56 with offset cost from LC. SS contin
Slide 22: Ammunition Division to Year View
Ammunition Division ammo 3 to 5 Year View * New products s . s a * Portfolio expansion in premium rifle $ Micrterm + Acquisitions/divestitures S Near-term + New products + Projectile Manufacturers 3 . — + Build superior brand around rifle * Primer Manufacturers 8 * Organizational alignment ammunitio
Slide 23: Manufacturing Facility, WI
Manufacturing Facility, WI same * 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 b
Slide 24: Strategic Account Management
Strategic Account Management aams GE, Gbohs Wa anenont a FRISCO RES eanceousn SIME ge weny@cunner — GG sears g& OFT Tics Ne AINGS SUN Oo monnnn SA Fleet 4FFarm. PA Academy ba MidWay Rural King = BI’-MART enetir Brome DISTRIBUTORS BUYING GROUPS HE, += ARON Sports South: Nas™ SI rdwide SLWS @eR oo mon
Slide 25: Sales & Channel Management
Sales & Channel Management ammo ‘pand channels and presence with targeted i tives and new products Deliverables | + Standardization of Strategic Account Mgmt. * Sales plan of $100+ M + Build and expand Ammo's “fair share” in the marketplace + Strategic Account Management execution * Pistol marginali
Slide 26: 2024 Target: Categories and Margins
2024 Target: Categories and Margins ammo Nasdaq poww
Slide 27: Gross Margin Improvement
Gross Margin Improvement * Shift in sales mix with higher focus on Casings * Approximate 12% margin increase over 6 months ¢ Anticipate margins continuing to * increase » i * More efficient operating model — CE canine Nasdaq poww
Slide 28: Proof of Performance
Proof of Performance Inventories (FG, RM, WIP) INVENTORIES JANUARY TO JUNE Se INVRM —8-INV WIP INVFG INV TOTAL ar | pe Nasdaq poww Progress over Six Months: * 29.9% Decrease in Raw Materials * 10.1% Decrease in Finished Goods * 1.7% Increase in Work in Progress
Slide 29: Rebranding — Ammo Inc.
Rebranding — Ammo Inc. 7 Nasdaq Poww 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.
Slide 30: Rebranding - Continued
Rebranding - Continued amma Prominent Build matrix on back panel VIM GR TMC >S RDS 9mm 115GRtTMC 1128FPS 50RD Made in USA/WI BALLISTIC DATA 7 Sense of pride with employees Muzzle Velocity: 1128 fps ‘AMMO|INC. | NASDAQ: POWW. Muzzle Energy: 325 ft. Ibs. 50 yd Velocity: 1073 fps 50 yd Energy: 294 ft.
Slide 31: Calibers Produced in House
Calibers Produced in House Rifle 50BMG 12.7 X 108 338 Lapua 338 Norma Magnum 300 Norma Magnum 7mm PRC - New 6.5mm PRC 300WM 7REM MAG. 6MM ARC 45-70 350 Legend 300BLK 5.56 X45 7.62 X51 Nasdaq poww * 25Auto * 32Auto * 380Auto * 38SPL * 38SUPER * 357M * 40SW * 45Auto + 44MAG * 4510 + 450 BM- New * 10mm
Slide 32: Calibers Produced in House
Calibers Produced in House Rifle * Rifle * 308 ° 7.62 X39 * 22-250 + 5.45 X 39 - NP * 7mm-08 * 6.5 CM ° 243 * 6mm CM ° 68X51 * 6.5 Grendel ° 30-06 * 6mm Arc ° 270 ° 46 ° 25-06 * 35 Whelan - NP Pistol + 350 legend-NP == 25 Auto + 45-70-NP * 32 Auto ° 357 Sig Nasdaq poww
Slide 33: Summary
SUMMARY AMMO (MANUFACTURING) 7 Nasdaq RIGHT PATH FOR HARD TIMES BUILDING BLOCKS FOR SUCCESS ARE LAID STRATEGICALLY PIVOTING TO HIGHER MARGINS CONTINUE SALES EXECUTION PATH ON STRATEGIC DOMESTIC ACCOUNTS AND BUILD OUT BD TEAM CONTINUOUS IMPROVEMENT AND 55 INITIATIVES WILL PULL THROUGH $2.5M MORE IN C
Slide 34: Appendix
7 Nasdaq INCORPORATED Poww
Slide 35: GunBroker.com
BROKER.COM
Slide 36: Market Share: GunBroker vs NICS
Market Share: GunBroker vs NICS |cun ) Ss o £ « E BS in wu gx % 2 i] = a) gH 2% a4 a G = 0% Juni,21 Oct1,21 Feb 1,22 Jun 1, 22 Oct 1,22 Feb 1,23 Jun 1,23 to own a firearm or explosive, as required by law. PY Nasdaq poww