Byrna Technologies, Inc. · NASDAQ:BYRN
Byrna Technologies — Corporate Update (September 2021)
79 slides from Byrna Technologies's corporate update, Sep 9, 2021
Slide 1: Q3: Transformative
= |
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT cauionry Not Regain FrwardLonkng Sterns Iason to hsbal arn tha pseu seth win fap aot aatrre ach rn tet ne By ut my conan oa king starr Al atric tha trent of ‘aca ree ar tt are een, analopmana hes gee opel ay Sn heh {Geeta tytn of anes ting tarmrciog auch ar‘eama' par areca ogee
Slide 3: Bryan Ganz, CEO
BRYAN GANZ, CEO
Slide 4: Byrna
©) byrna
Slide 5: The Byrna Mission
THE BYRNA MISSION To provide civilians and law enforcement professionals with a safe and effective alternative to lethal firearms that will enable them to safely and effectively protect themselves, their family and their community. LIVE SAFE!
Slide 6: Expanded Management Team to Support Growth
EXPANDED MANAGEMENT Wan TO SUPPORT GROWTH yj Bryan ay Mike a Ganz i! Gillespie Se David es Michael ean Wager Wager ~ real André Buys iv Sandra David Victor } Driscoll Schultz Eng : ee A }
Slide 7: Self-Defense Has a New Hero
SELF-DEFENSE HAS A NEW HERO Ihave say after last night Labsolutely love my Byrna HD Grey. 1 was at the local Walmart in Newport, Oregon, buying few items for our family Luckily me from across the way a5 1 pulled into parking spot. Lealmly masked up wasaloneand they were safe at home. Ineticed a man
Slide 8: Sandra Driscoll, CPO
SANDRA DRISCOLL, CPO
Slide 9: Byrna
@©)burna
Slide 10: People
PEOPLE
Slide 11: Hiring Philosophy
HIRING PHILOSOPHY FOCUS: Attract and retain the top 5% Our brand attracts employees that are passionate about our mission and products. This allows us to have a selective talent pool. KEY GROWTH AREAS: WHAT WE LOOK FOR WHEN HIRING: ¢ Operational «Experience « Manufacturing «Knowledge « Aptitude «Div
Slide 12: Key Functional Hires
KEY FUNCTIONAL HIRES In the Last 12 Months C-LEVEL *CMRO: Luan Pham COO; Michael Gillespie OPERATIONS » SR. SUPPLY CHAIN MANAGER + BUSINESS UNIT FINANCIAL MANAGER (SA) + CONTROLLER AND ASST. CONTROLLER + PROJECT MANAGERS + QUALITY CONTROL ‘SALES AND MARKETING » CREATIVE DIRECTOR + DIRECTOR OF E-COMM
Slide 13: Key Functional Hires
KEY FUNCTIONAL HIRES In the Last 12 Months MANUFACTURING * QUALITY CONTROL US & SA ‘CUSTOMER SERVICE * CUSTOMER SERVICE MANAGER LAW ENFORCEMENT * DIRECTOR OF LAW ENFORCEMENT AND PUBLIC SAFETY TRAINING COORDINATORS ITICOMPLIANCE IT DIRECTOR
Slide 14: How Do We Attract and Retain the Top 5%?
HOW DO WE ATTRACT AND RETAIN THE TOP 5%? BUILDING THE CULTURE AND INVESTING IN OUR FUTURE «Employees share a mission « Rewarding work environment «Focus on quality over quantity «Opportunity for career growth «Cross-functional training «Competitive compensation and incentive plans
Slide 15: David North, CFO
DAVID NORTH, CFO
Slide 16: Byrna
© burna
Slide 17: Financials
FINANCIALS
Slide 18: Q3 Revenues: Sales by Market Channel
Q3 REVENUES // Sales by Market Channel Q3 Preliminary Sales - $8.7 million / $9.0 million (non-GAAP) adjusted Website Dealer/Distributor Intemational Law Enforcement & Private Security Amazon Schools *Before $280K correction for prior periods GAAP (000) 5,667 1,250 1,564 153 49 20 8,703 Adjusted* (0
Slide 19: Q3 Revenues: Sales by Product Type
Q3 REVENUES // Sales by Product Type Q3 Preliminary Sales - $8.7 million / $9.0 million (non-GAAP) adjusted Byma HD Launchers & Kits Accessories Ammo Mission 4 Shoulder Fired Launcher Byma Banshee Byma SD Launchers & Kits Byma Shield (Ballistipax) Other $ 5,985 1,407 936 305 107 51 41 151 $ 8,983 66
Slide 20: Compelling Growth Profile
COMPELLING GROWTH PROFILE Annual Revenue (Sin millions) 147% yivorouth {atthemdpoint) ses ae u rvs FY20 Guidance Growth Strategy [5 New Products A482 New Channels @ New Markets oF Leverage the Byrna brand rail Strategic Acquisitions
Slide 21: Long-Term Target Model
LONG-TERM TARGET MODEL Gross Margin Adj. EBITDA Margin Net: yas ace! yer ends Novrbr 30. Byres rst a your pares nd May 318, See aan fr arconctaion of GAAP comereensve come adie EBITDA id etten cf gused EBITDA“)
Slide 22: Luan Pham, CMRO
LUAN PHAM, CMRO
Slide 23: Marketing
byrna MARKETING
Slide 24: Sales and Marketing
SALES MARKETING
Slide 25: Slide 25
Slide 26: New Products
NEW PRODUCTS
Slide 27: Banshee
BANSHEE » Entry-level price point product » Allows Byrna to freely advertise » Introduces the Byrna brand to a new customer demographic » Byrna’s first forward-facing product (attaches to backpacks, purses, etc) Launch date: 07.22
Slide 28: Slide 28
Slide 29: Eco-Kinetic
ECO-KINETIC » The only eco-friendly training ammunition byrna » Cost-efficient at .25 cents per round » Convenient cleanup: rinse off or let byena Mother Nature take its course €CO-KINETIC Launch date: 08.01
Slide 30: Mission-4
MISSION-4 » Expands Byrna’s portfolio for Law Enforcement and Private Security » Identifies our most most-engaged customers willing to pay the MSRP: $899.00 » Accelerates the “razor + razor blade” model Launch date: 08.13
Slide 31: Shield Ballistic Backpack
SHIELD Ballistic Backpack » Quick-Draw patent-technology » Front and back bullet-resistant protection with first-aid kit + front Molle System to are conceal a Byrna Launcher < 4 » Robust offering Byrna Learn Safe school = initiative » DEA among first customers Sa OVER 100 UNITS ‘welll SOLD IN FIRST
Slide 32: ‘fete
‘fete y
Slide 33: SD Launcher
SD LAUNCHER A Level Up. & » Next generation launcher AS » $40 increase in MSRP EE. » Higher gross margin than HD Launcher pe = » Initially offered on Amazon... 20% OF INVENTORY SOLD IN FIRST WEEK AMAZON INCREASED ALLOCATION BY 3X Launch date: 08.26
Slide 34: Sales Channels
SALES CHANNELS DTC | Brick & Mortar | Large End-User
Slide 35: Byrna.com
BYRNA.COM AVERAGE DAILY SESSIONS | BYRNA NATION EMAIL SUBS » FEB 2021: 7,697 » FEB 2021: ~33,000 » AUG 2021: 18,692 » AUG 2021; ~155,000 » +143% GROWTH » +370% GROWTH
Slide 36: Byrna.com
BYRNA.COM Pedal to the metal...increasing site sessions, conversion rate, list health » Influencer marketing » Byrna Nation database growth initiatives » Custom content creation » Mainstream Advertising Strategy: ByrnaSelfDefense.com » Email marketing campaign blitz » Deeper bench: Social Media Prod
Slide 37: Non-Lethal Self-Defense Marketing
CHANG NON-LETHAL SELF-DEFENSE © BYRNA’S NEW ENVIRONMENTALLY-FRIENDLY fiona wes eR ISNTONLYFORYOURSELE. —_ECO-KINETIC PROJECTILE IS A GAME CHANGER. ©, MAKEYOUR MARK WITHOUT LEAVING ATRACE. | (©) byrna
Slide 38: ByrnaSelfDefense.com
BYRNASELFDEFENSE.COM » Capability to advertise more freely » Leverage Shopify’s enhance payment functionality » Build customer database
Slide 39: Amazon
amazon —— » 90 Million Daily Visitors » Represents 54% of online commerce » FBA (Fulfillment by Amazon) —eligible for Prime status » 15% Amazon fee, comparable to byrna.com marketing budget » Sales momentum will grow over time as Byrna benefits from Amazon's sales algorhythm
Slide 40: Differentiated Product
DIFFERENTIATED PRODUCT amazon PAGE POWERED BY PREMIUM CONTENT
Slide 41: Byrna Storefront Promotes the Live Safe Lifestyle
BYRNA STOREFRONT PROMOTES THE “LIVE SAFE” LIFESTYLE amazon —T ZERO RECOIL DESIGNED ‘TO DEFEND LIVES NOT TAKETHEM
Slide 42: Dealer Channel
DEALER CHANNEL Advantages of Brick & Mortar » New customer acquisition via trusted brick and mortar locations » Building brand awareness » Drive traffic to byrna.com » Q3 2020: $439k vs. Q3 2021: $1.25M | +185%
Slide 43: Strategic Partnerships
STRATEGIC PARTNERSHIPS
Slide 44: International
INTERNATIONAL Developing Global Demand » Establishment of EU Distribution Center » Eliminates tedious import/export regulations » Country Count: 50 » Q3 2020: $510K vs. Q3 2021: $1.56M | +307%
Slide 45: Large End-User
LARGE END-USER LAW ENFORCEMENT + PRIVATE SECURITY + SCHOOLS » Q3 2020: $57k vs. Q3 2021: $172k | +201%
Slide 46: Expansion of Lifestyle Offerings
EXPANSION OF LIFESTYLE OFFERINGS MEN’S & WOMEN’S FUNCTIONAL APPAREL
Slide 47: Mike Gillespie, COO
MIKE GILLESPIE, COO
Slide 48: Byrna
@©)burna
Slide 49: Byrna Operations: South Africa
GQ) DYPNA openarions:sourt arnica
Slide 50: Operations
OPERATIONS
Slide 51: Operations
OPERATIONS Primary Function To Support Sales by Ensuring a Steady and Predicable Supply of Product
Slide 52: Operations
OPERATIONS Quality & Reliability are Paramount ° Assurance of Supply High-Performance Product Design Operational Excellence & Efficiency Yields - Cycle Times - Costs
Slide 53: Byrna's Operations
Byrna’s Op OPERATIONS Jicsders ang PP VWieutenants Oe. -essionate Group ~ © Dedicated to these Principles
Slide 54: Operations
OPERATIONS Chief Operating Officer - Mike Gillespie * B.Sc. Electrical Engineering (1989 UC San Diego) * 30+ Years in Technology / Sales / General Management Managing Director - Linear Technology Corp. Worldwide Assembly Operations - Penang, Malaysia (2k Emp / $1B Revenue) General Manager Wafer Fab
Slide 55: Operations
OPERATIONS Manufacturing Ft. Wayne, IN Pretoria, SA Human Resources Supply Chain Research & Development
Slide 56: Manufacturing: Built For Growth
Manufacturing OPERATIONS ee Built For Growth Facility * 16,500 ft? - Expandable to ~25,000 f2 * 5,000 ft? (Production) - Expandable to 12,500 ft? Staffing 53 Total (~63% Production) Trends: * Increase Assembly Staff to Support Growth of New Products * Transfer select Pkg/Kitting Tasks to SA (Favorab
Slide 57: Manufacturing: Fort Wayne, IN
OPERATIONS Manufacturing Ft. Wayne, IN Capabilities * Precision IQA for improved Quality & Reliability (cd ~2um) * Enhanced Tooling Assembly results in high first-pass Yield (~95%) * Tight R&D Coordinated NPI ensures First-to-Market advantage * Optimized Pack/Ship system delivers up to 1,000 DTC shi
Slide 58: Manufacturing: Pretoria, SA
OPERATIONS Manufacturing Pretoria, SA Facility * 8,500 ft? - Expandable to ~15,000 ft® * 4,100 ft? (Production) Staffing 70 Total (-83% Production) Trends: * Cross-Training: Production Flexibility, Coverage & Satisfaction * Incentive Program Implemented resulting in <3% Turnover * Prepared to Move Q
Slide 59: Manufacturing: Pretoria, SA
OPERATIONS Manufacturing Pretoria, SA Capabilities * Manufacturing expertise with Launchers, Magazines, and Projectiles * Precision Production Jigs resulting in high first-pass Yield (~90%) * Strong Relationships w/ Local Mfg Vendors for New Product Development * Gross-national capability for global
Slide 60: Manufacturing FY22 Initiatives
OPERATIONS Manufacturing FY22 Initiatives: * Ensure Mirrored Capabilities for Key Products and Services at Ft Wayne and SA * Fully Automate Manufacturing Inventory Control, In-line Quality, and Reporting Processes * Develop Capabilities to perform Payload Projectile Manufacturing In-House * Secure Q
Slide 61: Andre Buys, CTO
ANDRE BUYS, CTO
Slide 62: Byrna
@©)byrna
Slide 63: Research and Development
RESEARCH DEVELOPMENT
Slide 64: Driving Innovation & Brand Distinction
DRIVING INNOVATION & BRAND DISTINCTION * Entrepreneurial spirit (i — * Passion to Innovate \ * Engineering Excellence Pra] : * ue * Save Lives y] «= .
Slide 65: Successful Product Launches
* ByrnaHD * Byrna Boost * ByrnaHD XL * Magazines * Byrna Banshee, Ballistapax, Mission Launchers SUCCESSFUL PRODUCT LAUNCHES © * ByrnaSD * Level 1 & 2 holsters * Projectiles
Slide 66: ByrnaSD
BYRNASD k Re-Engineered Receiver * Honeycomb grip * Low profile safety lever * Flush mount magazine Straight trigger - improved trigger feel and control White dot sights, optional fiber optics
Slide 67: Byrna LE - Next Generation
BYRNA LE - NEXT GENERATION 325+ fps Fiber optic sights for easy target acquisition 7- round magazine Regulator for cold weather performance Efficiency - more shots from an 8 -gram CO2 Redesigned trigger feel
Slide 68: Accessories
ACCESSORIES * Holsters * 7round magazine * Reddotsights /
Slide 69: Byrna TCR - Compact, Tactical
BYRNA TCR - COMPACT, TACTICAL
Slide 70: Byrna Mission - High Capacity
BYRNA MISSION 4 - HIGH CAPACITY * 50-60 rounds per 88g CO2 * 325 average FPS * Pop up sights * Top Rail for optics SS we eal * Under 32” long 1 ‘a \ \ \_f * Opens new markets: | SWAT teams, law enforcement, = security, military
Slide 71: Byrna MLR - Full Range Performance
BYRNA MLR -FULL RANGE PERFORMANCE + 200 shots perfil FOR LAW ENFORCEMENT ONLY * Patented air feed system © 325+ FPS * Fully automatic rapid fire
Slide 72: Payload Projectile Development
PAYLOAD PROJECTILE DEVELOPMENT * Increased accuracy in Production * Increased performance - Projectiles form a better seal with the barrel - Stronger and more uniform break pattern - Shot capacity and speed * Improved Manufacturability - Quality, throughput, supply
Slide 73: Eco-Kinetic
ECO-KINETIC \ r | aa Re DLs? ¥ I >on A 3 M Fs 4, ~ 7)
Slide 74: Revolutionary: Patented Helix Projectile
REVOLUTIONARY: PATENTED HELIX PROJECTILE
Slide 75: Pump Action Launcher
PUMP ACTION LAUNCHER * 325+ fps * Utilizes helix projectile
Slide 76: Effective Range
EFFECTIVE RANGE: 265 FT.
Slide 77: Byrna PE - Size Comparison with the Byrna LE
BYRNA PE - SIZE COMPARISON WITH THE ALREADY COMPACT BYRNA LE
Slide 78: Byrna PE - The Revolution
BYRNA PE - THE REVOLUTION * Fiber optic sights * 6-12 round magazine * Regulated for cold weather performance * High Efficiency - 25+ shots from a 8 gram CO2 * Arevolution in terms of Accuracy and range and small form ‘a Factor. © x. Doe
Slide 79: Gauge Round
12 GAUGE ROUND 350 - 450 fps Utilizes traditional 12-gauge shotgun - Enormous installed user base Safer than current less lethal 12-gauge rounds
Byrna Technologies — Corporate Update (September 2021) on 6ix