Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION MARCH 2024 INCORPORATED NN Nasdaq 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: Investment Overview
INVESTMENT OVERVIEW
Slide 4: Market Highlights
MARKET HIGHLIGHTS IDEALLY SITUATED WITH AN OPTIMIZED SUPPLY CHAIN INA RECOVERING MARKET PRIMED FOR GROWTH AS GEOPOLITICAL TENSIONS AND POLITICAL UNCERTAINTIES FUEL GROWTH FOR BOTH MILITARY AND COMMERCIAL CONSUMPTION. Adjusted NICS Checks (in millions) Adjusted NICS checks haverisen over the pastfive
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS + GunBroker.com is the largest online marketplace for firearms in the US and expanding from the ‘Auction House of Firearms’ to the ‘Amazon / eBay of Shooting Activities’ + New management team leading transition + Legacy manufacturing business (AMMO, Inc.) pivoting to higher-mar
Slide 6: Introduction — AMMO, Inc.
INTRODUCTION — AMMO, INC. OS REASONS TO LISTEN GUNBROKER.COM (TECH) AMMUNITION MARKET (MFG) $1 + BILLION ANNUAL MERCHANDISE VOLUME NEW 185,000 SQ FT. MANUFACTURING for FY2023 FACILITY DOUBLES CAPACITY '80+% GROSS'PROFITMARGIN FROM STRATEGIC PIVOT TO HIGHER MARGIN DEEP MERCHANDISE FEE REVENUE DRAW RI
Slide 7: Market Opportunity
MARKET OPPORTUNITY INCREASED CUSTOMER BASE GROWING INTERNATIONAL DEMAND * 70% of the US Population shops online * $22.35B global ammunition market in 2021 * Marketplace ecommerce sales were forecast to hit and estimated to reach $23.30B in 2030 $428 billion in 2024 or 33.8% of total online sales" $1
Slide 8: Marketplace
MARKETPLACE ~~ Years —
Slide 9: GunBroker.com Today
GUNBROKER.COM TODAY GunBroker.com is the World’s Largest Online Marketplace of Firearms and Accessories Top 600 Ranked in the USA for Traffic * Buyer purchases Firearm from + FFL Performs NICS —> Transfers Gun to Buyer. FFL Seller on GunBroker.com 8 . 0 typically charges Buyer a oY Transfer Fee & +
Slide 10: Market Dynamics
MARKET DYNAMICS 39% of all FFUs are Actively engaged on GunBroker.com’ 15.9 Million (4.8 Million arefirsttime buyers) Firearms Sold in the US 20237 274.7 Million Digital Buyers in US in 2023° $1.1 Trillion Total US Ecommerce sales in 2023° Strong Hunt Shoot Industry Fundamentals: Overall On-Line Con
Slide 11: Shopping Cart and Checkout Process as of March 14, 2024
SHOPPING CART AND CHECKOUT PROCESS AS OF MARCH 14, 2024 TRANSACTION 2023 BUYER SINGLE SELLER e fl FFL Exchange p TRANSACTION TODAY MULTIPLE SELLERS 7% Cart adoptionon BUYER Did f 15.6% Cart adoption on March 11, 2024 jouw) March 14, 2024 p FFL Exchange 3 )
Slide 12: Shopping Cart & Checkout
SHOPPING CART & CHECKOUT LTIPLE ITEMS LTIPLE SELLERS Shopping Cart ‘Ammo Ine. mm Luger 115 Grain Total Metal Coating (TM) - 50 Rounds Glock OEM MAGAZINE G43x/G48 9MM TORD Glock GLOCK 48 9MM 4” 10+ AUTO PISTOL NEW! semi FR Requted Checkout r ‘GLOCK 48 9NIM 4" 10+1 SEM AUTO PISTOL Unit Price: NEW! $49
Slide 13: Collector's Elite Auctions
COLLECTOR’S ELITE AUCTIONS Specialty site cataloging high-end auctions hosted on GunBroker.com. Invite-only to sell. Buyers premium option - cap final value Alltransactions (bidding/buying/checkout) are conducted on GunBroker.com COLLECTOR'S ELITE AUCTIONS COLLECTOR’S ELITE AUCTIONS 532975. $0.00 No
Slide 14: Marketing: Lifestyle Campaigns by Persona
MARKETING: LIFESTYLE CAMPAIGNS BY PERSONA -_ —__——— OLLECTOR LEVER-ACTION ELITE 19115 REVOLVERS. [SUNS - ADD some BLING o EIRLOOH FIND THE an ICE FISHING To Your BANG! i RIGHT GUN RABBIT wor zt HUNTING Bee ul Ea FANTASY AUCTIONS ENDING CoNncEALED caRRY Spensonal ANTIQUE SPECIAL epInioM FIREARM can &
Slide 15: Marketplace Revenue: Current and Future
MARKETPLACE REVENUE: CURRENT AND FUTURE CURRENT REVENUE Final Value Fee - The Final Value Fee is assessed when the listing sells and is based on the price that the item is sold for. Optional Listing Fees - Revamping listing options for enhanced buyer and seller experience Advertising - Two times gro
Slide 16: Historical Take Rate (Calendar Year)
HISTORICAL TAKE RATE (CALENDAR YEAR) Revised feo structure by Compliance feo category Fairlyminimalchanges to fee structure andsite functionality Improved user functionality, merchandise selection and web site traffic + Cart live on March 14, 2024 + Higher add-on sales + Collector's Elite Program +
Slide 17: Financial Goals Over Next Years
FINANCIAL GOALS OVER NEXT 3 YEARS * 10% YOY targeted growth * Trailing 36-month Annual Average Gross Merchandise Volume of $1.3 Billion ¢ Increasing take rate from 6% to 7%-9% * Tiered fee structure * Attractive shipping offerings ¢ Advertising * Customized Analytics Solutions * Cross-selling and su
Slide 18: GunBroker Build Out
GUNBROKER BUILD OUT YEARS 4-5. 3-to-5-Year View Long-term YEARS 2-3 + Expand Service offerings g Mid-term + Industry Masters Networking 2 * Financing of Cart Events ° Near-term * Website Visual Refresh + Industry Forecasting Tools 3 + Launched Carting Capabilities + Expanded Outdoor Category * GeoTa
Slide 19: Ammunition Division
AMMUNITION DIVISION
Slide 20: Manufacturing Investments to Support Long Term Growth
MANUFACTURING INVESTMENTS TO SUPPORT LONG TERM GROWTH AMMO INC?S AMMUNITION DIVISION’S NEW MANUFACTURING FACILITY INCREASES LEGACY AMMUNITION PRODUCTIONAND BRINGS NEW CAPABILITIES VIA NEW LINES AND EXPANSION OF RIFLE BRASS PRODUCTION + ~$30M CapExin FY2022 and FY2023 culminated in the Manufacturing
Slide 21: Build-Out of Manufacturing Facility
BUILD-OUT OF MANUFACTURING FACILITY Acquisition of Pelican Tooling to develop internal tooling capabilities - CAPEX-$0.4M * Cost Out Initiatives - Bunter Mfg. - CAPEX-$1.3M + Redundancy - Rifle Case Production - CAPEX - $0.8M + Annealing Oven - Body Annealing - CAPEX-$0.7M * Streak Automation - CAPE
Slide 22: Ammunition Components
AMMUNITION COMPONENTS The object that goes down range foward intended target POWDER Nitrocellulose-based propelient, also refered to as “grain” PISTOL RIFLE Drawn brass case manufactured to chamber dimensions to hold pressures to match cartridge specs - —_Sa#—_= Catalyst containing explosive mixture
Slide 23: Leading Centerfire Rifle Shell Case Capabilities
LEADING CENTERFIRE RIFLE SHELL CASE CAPABILITIES Centerfire Rifle Shell Cases are Complex... ee — Shoulder, —, Web Flash Hole Body Extraction J Groove Head —{) {77 Fim CL Primer Pocket THE AMMUNITION DIVISION CENTERFIRE RIFLE SHELL CASE VALUE PROPOSITION ..and Difficult to Manufacture... Multi-Step
Slide 24: Pivot to Higher Margin Product Mix
PIVOT TO HIGHER MARGIN PRODUCT MIX AMMO, INC. PRODUCT MIX 2023 PIVOT- FUTURE PRODUCT MIX 47% BRASS & RIFLE AMMO 65% BRASS & RIFLE AMMO. Pistol Ammo @ Rifle Ammo M™ Brass Sales @ Other PistolAmmo RifleAmmo MBrass Sales
Slide 25: Strategic Account Management
STRATEGIC ACCOUNT MANAGEMENT >> ONLINE / RETAIL SHOOTING RANGES. | Bie) Gobo, scneers egy RANGEOUSA Fleet4? Farm. A Academy ae, [A mien eum: wwe oss > rop@aun Sid cose eas) SHOOTERS a ae sTOMBSTONE} Worio IRON VALLEY Sports Southis NES™ Sr @orldwide TS2| <<. (4 MIDsTATES ORION
Slide 26: Sales & Channel Management
SALES & CHANNEL MANAGEMENT EXPAND CHANNELS AND PRESENCE WITH TARGETED INITIATIVES AND NEW PRODU Objectives Investment Deliverables + Target and build key customer + Rebrandinitiative of premium * Sales plan of $100M+ relationships through Strategic rifle with consumers Account Management Loaded Ammu
Slide 27: Sales & Channel Management
SALES & CHANNEL MANAGEMENT KEY GROWTH DRIVERS REPRESENTING AMMOINC’S AMMUNITION DIVISION’S GROWTH REBRANDING MILITARY / LAW ENFORCEMENT KEY CUSTOMERAGREEMENTS Rebranding of Consumer- Highly Attractive Opportunityto Continue Opportunityto Grow OEM Supplier Facing Ammunition Packaging Growth and Diver
Slide 28: Ammunition Division
AMMUNITION DIVISION Profitable Growth Near-term * Organizational alignment + Strategic account management * Focus on rifle ammunition & brass sales for OEM and international customer base and drive high- margin pistol products as we transition + Rebranding complete and on shelf * In-house tooling wi
Slide 29: Financial Goals Over Next Years
FINANCIAL GOALS OVER NEXT 3 YEARS -_ eS Revenue Goals exceeding $150M Financial Targets: * Gross Profit Margins: 25%+ * EBITDA Margins: 20%+ * Maximum Capacity: - 600M to 700M Cartridges / Brass Casings - At 80% OEE Rate - Stroke and Machine Capacity to Exceed 900M
Slide 30: Summary
SUMMARY * GunBroker.com is the Largest Online Marketplace for Firearms in the U.S. * New Management Team Leading Transition from Manufacturing Model to Technology Model * GunBroker.com Expanding From the ‘Auction House of Firearms’ to the ‘Amazon / eBay of Shooting Activities’ + Legacy Manufacturing
Slide 31: Thank You
THANK YOU INCORPORATED
Slide 32: Appendix
APPENDIX INCORPORATED
Slide 33: Company Snapshot
COMPANY SNAPSHOT Diluted Shares Outstanding? 118.4 million Market Capitalization $296.7 million Debt (as of 12/31/2023) $13.4 million Cash (as of 12/31/2023) $54.7 million Enterprise Value $255.1 million LTM Share Price Performance" Share Price $2.50 52 Week High $3.15 52 Week Low $1.57 Avg. Daily V
Slide 34: Introduction and Roadmap
INTRODUCTION AND ROADMAP October 2016 Fred Wagenhals founds AMMO, Inc. October 2018 AMMO acquires SW Kenetics and armor piercing projectile patented technology March 2020 The Company expands manufacturing capabilitiesin Arizona and Wisconsin to meet significant increase in demand from commercial cus
Slide 35: Rifle Calibers Produced in House
RIFLE CALIBERS PRODUCED IN HOUSE » 308 » 46 >» 22-250 » 50BMG > 7mm-08 » 12.7X108 > 243 >» 338 Lapua > 68X51 » 338 Norma Magnum >» 30-06 » 300 Norma Magnum » 270 > 7mm PRC-New > 25-06 > 6.5mm PRC >» 35 Whelan - NP >» 300WM » 350 Legend - NP > 7REMMAG >» 45-70-NP >» 6MMARC > 7.62X39 >» 45-70 >» 5.45X
Slide 36: Pistol Calibers Produced in House
PISTOL CALIBERS PRODUCED IN HOUSE > 9mm >» 357 Sig » 25Auto » 45Auto > 32Auto » A44MAG > 380Auto » A45LC >» 38SPL >» 450BM -New > 38SUPER >» 10mm >» 357M >» 44SW » 40Sw
Slide 37: AMMO Manufacturing
AMMO MANUFACTURING Manufacturing Site + 185,000sq. ft. facili indoor ballistic range + Opened in August 2022 in Manitowoc, WI(AMMO/MC plant) : training facility, 12 shipping bays, 200-meter + Footprintto expand another 40,000 sq. ft., 37 acres with options onan additional 38 contiguous acres + H-Occ