INVESTOR PRESENTATION JUNE 2020
SAFE HARBOR / FORWARD-LOOKING This document contains certain “forward - looking statements”. All statements other than statements of historical fact are “forwar d-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, re venue or other financial items; any statements of the plans, strategies, goals and objectives of management for future operations; any statements concerning proposed new products and services or developments thereof; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing. Forward looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “an tic ipate” or other similar words, or the negative thereof. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however, consult further disclosures and risk factors we include in Annual Reports on Form 10-K, Quarterly Reports on Form 10- Q, and Reports filed on Form 8-K. In our filings with the Securities and Exchange Commission, references to “AMMO, Inc.”, “AMMO”, “the Company”, “we,” “us,” “our” and similar terms refer to AMMO, Inc. and its wholly owned operating subsidiaries The Enlight Group, SNI, LLC and Ammo Technologies, Inc. 2
WHO WE ARE These products are disrupting a complacent industry We have an innovative, high-quality patent portfolio providing a significant competitive advantage over the competition We are a premier American Fully integrated supply chain with state-of-the-art manufacturing facilities ammunition manufacturer that produce ~300M rounds/year with the ability to scale up to >500M with products that emphasize rounds/year innovative technologies Multi-channel retail distribution of commercial products Ability to provide ammunition to militaries and law enforcement across the globe 3
GLOBAL MARKET OPPORTUNITY Military & Law Enforcement Commercial/Retail TAM* TAM * ~$18.5B ~$13.9B Rest of World Rest of World >$12B >$12B U.S. U.S. $6.5B ~$1.9B *Total addressable markets 4 4 Sources: 2018 DOD Budget Proposal, NSSF
MARKETS WE SERVE Global Commercial Market Global Defense Market U.S. Military Big Box Retail Stores Shooting Ranges Special Operation Forces & Standard Infantry U.S. Law Enforcement Foreign Allies Distributors Online Federal, State & Local Military & Law Enforcement 5
A DIFFERENTIATED AMMUNITION COMPANY AMMO, Inc. Industry Product Patented / Non-commodity Commoditized Marketing Branded / Licensed Characterized by Use / SKU Quality / Price Point Premium Value Product Margins 35% Target 10-20% Average Target Customer Young, Active, Influencers Established, Older Generations 6
GLOBAL COMMERCIAL M ARKET
COMMERCIAL PRODUCTS AMMO Signature and One Precise Shot – OPS STREAK Visual Ammunition stelTH Subsonic Ammunition Black Label Lines Exclusive patented technology Jacketed hollow point frangible Designed specifically for superior Superior ball and hollow point allows shooter to see projectile’s with STREAK visual technology performance in suppressed firearms, ammunition loaded for extreme path reducing decibel levels while accuracy and reliability improving accuracy and cleanliness Lead-free, non-incendiary projectiles designed to penetrate a variety of barriers and deliver Non-incendiary and do not Balanced velocity and recoil Utilizes HyperClean technology with substantial force upon impact generate heat allowing them to with HyperClean powder to a total metal jacket slowing of target be used in environments where shoot more and clean less suppressor corrosion and reducing traditional tracer prohibited build-up of lead emissions (i.e. shooting ranges) Ideal for self-defense scenarios providing significant stoppage power 8
MULTI-CHANNEL DISTRIBUTION Current Distribution Channels Distributors Mass Merchants / Online Buying Groups Shooting Ranges 9
GLOBAL DEFENSE M ARKET
MARKET PENETRATION STRATEGY Global Tactical Defense Division Launched in 2019 with Mission to Deliver High-Quality, Precision Rounds for Military & Defense Operations Across the World Introduce Proprietary Technologies Penetrate and Expand Market Share Strong demand for our superior brand of patented Prove increased performance through armor piercing incendiary and hard-arm piercing demonstrations of lethality and accuracy incendiary rounds that are made in America Offer lower-cost, made in America product lines by controlling component manufacturing costs Utilize our patented One-Way Luminescent (O.W.L) technology in our STREAK products to provide competitive advantage in tactical and Utilize backlog of competitors to capture sales defense scenarios Partner with strategic players and weapon manufacturers to expand product lines 1 1 1 1
DEFENSE PRODUCTS Extremely effective and accurate Optimized incendiary projectile Manufactured in America A A O MA MA I O MA MA alternative to current AP rounds designed to penetrate and defeat to match grade specs to ensure AC O T . x mm . x mm offered by defense contractors – . x mm hard targets accuracy and effectiveness consistently outperform competitor offerings Hard Armor Penetrating Incendiary (HAPI) Round Utilizes the O.W.L. technology Leaves visible trace Optimal ammunition for military tactical engagements – the trace in STREAK ammo to illuminate with a non-incendiary round the trajectory of the projectile significantly improving accuracy is only visible in a 30-degree O.W.L. Non-Incendiary window from the point of view Visual Ammunition of the shooter, making the round completely undetectable from the target’s viewpoint 1 2
CURRENT PROGRESS IN THE GLOBAL DEFENSE MARKET Debuted new AP/HAPI Awarded First Law Compliant with the U.S. ammunition at SHOT Show Enforcement Contract State Department and Department in January 2019 of Commerce statutes and regulations governing the lawful export of ammunition and munition Met with various U.S. military Contract began shipping in the second components personnel and more than a dozen allied half of 2019 to the state of Arizona countries providing ammunition to all Arizona law enforcement agencies Received and delivered initial test and evaluation orders Signed with several new distributors to expand global coverage 1 3
JAGEMANN ACQUISITION One of the leading brass casing manufacturers in the U.S. Aligns key elements in our supply chain ensuring consistent access to brass casings and proprietary projectiles across varying business cycles Seamless integration between component manufacturing & assembly – allowing for more rapid product development and enhancing speed to market Secures industry best pricing to compete in global markets and expands Closed Acquisition industry relationships of Jagemann Stamping’s Brass Casing and Projectile Manufacturing Operations Diversifies revenue base and provides significant cash flow in March 2019 1 4
MANUFACTURING FACILITIES 25,000 sq.ft 50,000 sq.ft ~300M rounds 20% only Ammo loading facility Brass casing and military Current combined capacity being Utilization rate - able to quickly located in Payson, AZ loading facility in Manitowoc, WI produced per year with ability scale and support growth of to scale up to > 500M rounds per $200M+ in revenue with additional year capital investment Among the top manufacturers in the country Manitowoc facility supplies many leading with state-of-the-art test labs ammunition manufacturers 1 5
RECENTLY ESTABLISHED SALES CALL CENTER Began operations of sales call center at its Scottsdale, AZ headquarters on April 1, 2020 , with the responsibility of calling and servicing the ~67,000 stores with active federal firearms licenses. Call center is staffed with 11 full-time employees being led by proven sales leader and industry veteran Matt Nicholson. As of May 22, 2020, the call center has generated 268 new customers with over $5 million in sales being booked . New customers represent >500 retail stores and a significant ecommerce presence from notable brands, including Rural King, Bi-Mart, Cascade Farm and Outdoor, Shoot Point Blank, and many other regional chains. 1 6
KEY STATS Trading Data (as of 6/8/20) Valuation Measures (as of 6/8/20) Financial Overview (TTM @ 12/31/19) Stock Price Enterprise Value Revenue $2.85 $144.1M $11.4M 52 Week High/Low Market Cap GAAP Net Income 2 $2.95/$0.96 $137.6M $(17.9)M EV/Sales 1 Avg. Daily Volume (3 months) GAAP EPS 59,460 13.2x $(0.41) Shares Outstanding 48.3M Public Float ~70% 1 7 1 7 1) Includes trailing twelve-month revenue as of the quarter ended 12/31/2019. 2) This figure includes approximately $9.5 million in noncash expenses.
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