Byrna Technologies, Inc. · NASDAQ:BYRN
Byrna Technologies — Investor Presentation (May 2022)
30 slides from Byrna Technologies's investor presentation, May 25, 2022
Slide 1: Byrna - Live Safe
©) byrna LIVE SAFE
Slide 2: Safe Harbor Statement
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Slide 3: Byrna Is Part of the Solution
BYRNA IS PART OF THE SOLUTION “Our mission is to save lives by providing both safe and effective non-lethal alternatives to firearms as well as defensive products which can protect civilians and security professionals alike from lethal fire." Live Safe”
Slide 4: Deterioration of Safety and Civility
DETERIORATION OF SAFETY AND CIVILITY 5% increase in homicides 2021 vs. 2020 eee 42M total guns sold in 2021 and 2020 ‘were shot in mae shootings (Ghre ormore people shot atone) 13.8 M guns sold to FIRST TIME buyers in! 2021 and 2020 460 school shootings in last five years 118% increase in school sho
Slide 5: Byrna Product Range
BYRNA PRODUCT RANGE
Slide 6: Byrna Handheld Launchers
BYRNA HANDHELD LAUNCHERS te Poaessenanduse ma beauties ocecalensstin * Fires kinetic and chemical irritant projectiles using CO2 * Incapacitates an assailant from a safe standoff distance of up to 60 feet + No license, background check or waiting period required * Patented trigger-pulltechnology + E
Slide 7: Byrna Shoulder Fired Launchers
BYRNA SHOULDER FIRED LAUNCHERS * Fires .68 caliber projectiles using 12 gram CO2 * Capable of shooting 17+ rounds at 300 FPS * MSRP: $699 * Fires .68 caliber projectiles using 88 gram CO2 * Capable of shooting 60 rounds at 325 FPS * MSRP: $899, ‘M4: Tactical Full-Sized Rifle te Poaessenanduse ma bea
Slide 8: Byrna Projectiles
BYRNA PROJECTILES Full line of .68 caliber projectiles Inert, kinetic and chemical irritant versions Environmentally friendly Eco-Kinetic round Ramping in-house production Re-occurring consumable sale 500,000 rounds sold / month and growing 15% of revenue today ‘SELF-DEFENSE Pepper TRAINING AND RECR
Slide 9: Byrna 40MM Impact Rounds
BYRNA 40MM Impact Rounds Blunt Impact Projectile (BIP) uses patented collapsible gel head technology Best in class 40MM less lethal round Restricted to law enforcement Shoots out of 40MM Launcher
Slide 10: Byrna Shield and Ballistipac
BYRNA SHIELD AND BALLISTIPAC ra SN * IIA Soft, Hard and I+ Rifle Armor i * Focus for School Safety program y { * Ballistipac - Features a patented quickdraw | system, enabling a front plate carrier to be deployed using one hand * Contains front and back Byrna Shield Armor Plates + MSRP: $149 (Byrna
Slide 11: Byrna Self Defense Sprays
BYRNA SELF DEFENSE SPRAYS Acquisition of Fox Labs portfolio of aerosol spray products Fills void in Byrna’s continuum of force Softer product category than launchers but ) active protection compared to Byrna Banshee 7 Will be marketed to over 225,000 members of pall Byrna nation across all sales cha
Slide 12: Byrna Banshee
BYRNA BANSHEE * Personal Safety Alarm that emits 130db siren when pulled * Comfortable entry-level price point for consumers * Softer product category than launchers - > introduction to Byrna brand + Approximately 20,000 units sold since August 2021 launch * MSRP: $30
Slide 13: Byrna Accessories
BYRNA ACCESSORIES 14% of revenue Retargeting and follow up campaigns to installed user base Continuing to source and develop additional accessories to complement core products: * 7-round magazine * Magazine Sleeves
Slide 14: US Consumer Market Opportunity
US CONSUMER MARKET OPPORTUNITY @)burna I. US Consumer Market —————} 204M Potential Customers Out Of 255M Adults 103,000 E-Commerce Customers To Date 35M 16M ‘te bp estatesmlarprownaey OS sau welders pcr Bpmapoaics
Slide 15: US Law Enforcement Market Opportunity
US LAW ENFORCEMENT MARKET OPPORTUNITY Focus on generating credibility in the law enforcement (LE) community 147 agencies trained through our T3 program Early adopters include both federal and state agencies such as the ATF and Spokane County Go to market strategy: through T3 training and LE specific
Slide 16: South Africa Market Opportunity
SOUTH AFRICA MARKET OPPORTUNITY * Second home market-— local manufacturing factory in Pretoria * Local regulations require strict licensing for firearms. * Addressable Markets: * Taxi Drivers — 1.2mm * Private Security Guards - 1mm * Outdoors Retail Stores
Slide 17: Canada and International Market Opportunity
CANADA AND INTERNATIONAL MARKET OPPORTUNITY Recent orders from Argentina, France, South Korea, Poland and Chile Large Tenders Longer sales process (exports, etc) but significantly larger orders = Indonesia ($1mm initial purchase order) * Argentina ($400k initial purchase order) Untapped markets wher
Slide 18: School Safety Market Opportunity
SCHOOL SAFETY MARKET OPPORTUNITY * Andy Pollack leading school safety effort * Byrna Shield for students, adults for personal protection * Byrna Ballistipac for School Resource Officers (SRO) and Law Enforcement * Market more broadly to larger audience — e.g. those unwilling to carry a weapon ‘te te
Slide 19: Expansion of Sales Channels
EXPANSION OF SALES CHANNELS DEALERS AND DISTRIBUTORS 9 "YW oemuewne E-COMMERCE acaesx BI-MART DavIDseN’s @eseys
Slide 20: Sales % Breakdown by Market Channel
Sales % Breakdown by Market Channel Current Target E-Commerce (byrna.com) 68% 40% E-Commerce (Amazon) 10% 17% Dealer / Distributor 19% 18% International 1% 15% Law Enforcement / Private Security / Schools 1% 10% Total 100% 100% te Cuetec tte uate nn Feb 28,2022
Slide 21: Razor / Razor Blade Business Model
RAZOR / RAZOR BLADE BUSINESS MODEL Launchers drive consumable sales Recommendations from Byrna Nation Robust level of repeat orders Installed base likely to upgrade
Slide 22: Compelling Growth Profile
COMPELLING GROWTH PROFILE Annual Revenue 154% /” Growth Strate Leverage the Byrna brand ft New Products a AR New Channels. © New Markets il Strategic Acquisitions
Slide 23: Revenue Growth - Excluding Hannity
REVENUE GROWTH - EXCLUDING HANNITY Annual Revenue Excluding Hannity Mentions (Sia millions) 74% vlygrowth (atmepoint) $55-$60 371% vigrowh sso
Slide 24: Gross Profit Margin / EBITDA Margin
Gross Profit Margin / EBITDA Margin 2020 2021 Target Gross Profit % 45% 54% 60 - 65% Adj. EBITDA N/A 3% 30%
Slide 25: New Product Innovation
NEW PRODUCT INNOVATION Handheld Launchers Shoulder-Fired Launchers , a PAL: Pump Action Shotgun LE:SWAT/ ERT PE: High End Conceal Carry 12 - Gauge Non Lethal Rounds Utiizes patented fntailed technology, enabling accuracy beyond delivery comparedto 68 caliber bal projectile + Inert, kinetic and chemi
Slide 26: Strategic Acquisitions
STRATEGIC ACQUISITIONS Mission Less Lethal Acquired Mission Less Lethal assetsin May 2021 Leaderin non-ethal, shoulder- firedrifies Full suite of products necessary forLaw Enforcement IP portfolio strengthens competitive moat Byrna Shield Acquired assets of Balistipax® in August 2021 ‘Single-handed,
Slide 27: Financial Position
FINANCIAL POSITION ($ in thousands) As of March 31, 2022 (unaudited) Cash $34,476 Inventory $13,666 Receivables $1,108 Debt | $0 |Treasury Shares y | ~ | | 1,050,249 * $10 Mshare repurchase completed in March — 1,050,249 shares in treasury stock - $9.52 average repurchase price * No need to access p
Slide 28: Investment Thesis
INVESTMENT THESIS * Byrna Undervalued Relative to Peers on Comparable Metrics * EV/FY22E Sales: * _ FY21A Gross Margins: * FY19-FY22E Rev. CAGR: * BYRN: 2.9x * BYRN: 54.2% * BYRN: 289%, * AXON: 8.2x = AXON: 62.7% * AXON: 25% * WRAP: 10.1x * WRAP: 25.8% = WRAP: 161% * — Right Product For The Times Re
Slide 29: Expanded Management Team to Support Growth
EXPANDED MANAGEMENT TEAM TO SUPPORT GROWTH > Bryan Ganz Be esice Brian © David Luan Terando se North Pham : SES: WES MBN cola André Sandra
Slide 30: Reconciliation
RECONCILIATION (Sin thousands) FY20 FY21 GAAPComprehensive income (loss) $(3,327) Net interest expense ia (i60) Income tax provision ‘Adjusted EBITDA ($2340) $1308 "Net ated EBITOA on AW? sansa measue ana doesnlelaca be eseratn lau GHW? tmanalrenus anashoadoneeusedas supper tl ab asustaetottoanca
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