Outdoor Holding Company · NASDAQ:POWW
Outdoor — Investor Presentation (September 2023)
43 slides from Outdoor's investor presentation, September 2023
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: Company Snapshot
Company Snapshot Market Statistics1 Share Price $2.05 Diluted Shares Outstanding2 117.7 million 52 Week High $3.71 Market Capitalization $241.8 million 52 Week Low $1.56 Debt (as of 6/30/2023) $10.2 million Avg. Daily Volume (3 Months) 574,590 Cash (as of 6/30/2023) $47.5 million Insider Ownership 2
Slide 4: Financials – Trailing 12 Months
Financials – Trailing 12 Months Revenue Margin Percentage (Millions) 40.9% $48.3 32.4% $43.7 27.3% $38.7 26.6% $34.3 FY 2023 - Q2 FY 2023 - Q3 FY 2023 - Q4 FY 2024 - Q1 FY 2023 - Q2 FY 2023 - Q3 FY 2023 - Q4 FY 2024 - Q1 Adjusted EBITDA Cash Generated (Millions) (Millions) $6.2 $6.6 $12.0 $5.7 $8.1
Slide 5: Financials by Business Segment
Financials by Business Segment Revenue Margin Percentage Adjusted EBITDA (Millions) (Millions) 33.7 27.0 9.5% FY 23 - Q2 FY 23 - Q3 FY 23 - Q4 FY 24 - Q1 23.3 (0.6) 20.3 (1.6) 1.1% (3.2) FY 23 - Q2 FY 23 - Q3 FY 23 - Q4 FY 24 - Q1 -2.5% FY 23 - Q2 FY 23 - Q3 FY 23 - Q4 FY 24 - Q1 -8.7% (5.4) Revenue
Slide 6: 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 7: GunBroker Acquisition
GunBroker Acquisition On April 30, 2021, AMMO acquired GunBroker.com Valuation GunBroker History • Enterprise Value: $240 million • The world’s largest online auction marketplace • EV / CY 2020E EBITDA: 6.0x dedicated to firearms, hunting, shooting and related products Consideration • Leading online
Slide 8: 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 9: Business Overview Day
Business Overview DAY POWW March 21, 2023 POWW 9
Slide 10: GunBroker.com
GunBroker.com POWW March 21, 2023 POWW 10
Slide 11: GunBroker.com Today
GunBroker.com Today GunBroker.com is the World’s largest Online Marketplace of Firearms and Accessories HOW IT WORKS • FFL Performs NICS --> Transfers • Buyer purchases Firearm from Top 500 Gun to Buyer FFL typically Seller on GunBroker.com Ranked in the USA for Traffic charges Buyer a Transfer Fee
Slide 12: 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 13: 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 13
Slide 14: 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 14
Slide 15: Transaction & Payment– Today
Transaction & Payment– Today BUYER SINGLE SELLER Transaction FFL Exchange BUYER SINGLE SELLER Payment $ $ Fees/Taxes POWW 15
Slide 16: Transaction & Payment – 2023/2024
Transaction & Payment – 2023/2024 MULTIPLE SELLERS BUYER Transaction FFL Exchange MULTIPLE SELLERS BUYER $ Money $ Payment $ $ Transmission Internalized Service $ CC Processing Fees/Taxes POWW Money transmission services are provided by Priority, directly or through its subsidiary Finxera, Inc. (NML
Slide 17: Marketplace Revenue: Current and Future
Marketplace Revenue: Current and Future Current Revenue Revenue Expansion Final Value Fee Credit Card Processing Fee • The Final Value Fee is assessed when the listing closes and is • Variable fee assessed on total transaction value at the close of based on the price that the item is sold. transacti
Slide 18: Federal & State Regulation
Federal & State Regulation The White House Today, the Justice Department has announced a proposed rule to specify what exactly the new definition in the Bipartisan Safer Communities Act means on the ground. Specifically, the proposed rule, if finalized, would clarify that an individual would be pres
Slide 19: Marketing Lifestyle Campaigns
Marketing Lifestyle Campaigns Target unique consumer personas – 126 current campaigns and growing POWW https://www.gunbroker.com/c/a/gunbroker-lifestyle/ 19
Slide 20: 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 21: Ammunition Division
Ammunition Division ommoa INCORPORATED sty Nasdaq POWwW
Slide 22: Ammunition Division
Ammunition Division POWW 22
Slide 23: Ammunition Components
Ammunition Components POWW 23
Slide 24: 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 25: Gross Margin Improvement
Gross Margin Improvement 12.0% • Shift in sales mix with higher focus 10.0% on Casings 8.0% • Approximate 12% margin increase 6.0% over 6 months 4.0% • Anticipate margins continuing to increase 2.0% • More efficient operating model 0.0% -2.0% -4.0% FY 2023 - Q3 FY 2024 - Q1 Gross Margin -2.5% 9.5% P
Slide 26: 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 27: 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 28: Strategic Account Management
Strategic Account Management ONLINE / RETAIL SHOOTING RANGES DISTRIBUTORS BUYING GROUPS POWW 28
Slide 29: 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 30: 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 31: 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 31
Slide 32: Rebranding - Continued
Rebranding - Continued Prominent build matrix on back panel • Made in USA/WI ⎼ Sense of pride with employees • Positions superior components • Distinctive ballistic data POWW 32
Slide 33: 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 34: 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 34
Slide 35: 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 36: 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 37: March 21, 2023
ste Nasdaq Garrats INCORPORATED POWW
Slide 38: Appendix
INCORPORATED BROKER.COM
Slide 39: Current Military Opportunities
Current Military Opportunities POWW 39
Slide 40: 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 41: 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 42: 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
Slide 43: 16 Year Market Trend
16 Year Market Trend $1,400,000,000 Obama (D) Obama (D) Trump (R) Biden (D) Elected Elected Elected Elected $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PIS/REV SUM LONG GUNS AMMO/
Outdoor Holding Company — Investor Presentation (September 2023) on 6ix