American Outdoor Brands : Investor Presentation - June 2024

NASDAQ: AOUT

INVESTOR PRESENTATION

June 2024

AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT)

LEGAL SAFE HARBOR

Certain statements contained in this presentation may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of historical facts contained or incorporated herein by reference in this presentation, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "estimates," "expects," "intends," "suggests," "targets," "contemplates," "projects," "predicts," "may," "might," "plan," "would," "should," "could," "may," "can," "potential," "continue," "objective," or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, potential disruptions in our suppliers' ability to source the raw materials necessary for the production of our products, disruptions and delays in the manufacture of our products, and difficulties encountered by retailers and other components of the distribution channel for our products; lower levels of consumer spending in general and specific to our products or product categories; our ability to introduce new products that are successful in the marketplace; interruptions of our arrangements with third-party contract manufacturers and freight carriers that disrupt our ability to fill our customers' orders; increases in costs or decreases in availability of finished products, components, and raw materials; our ability to maintain or strengthen our brand recognition and reputation; our ability to forecast demand for our products accurately; our ability to continue to expand our e-commerce business; our ability to compete in a highly competitive market; our dependence on large customers; our ability to attract and retain talent; pricing pressures by our customers; our ability to collect our accounts receivable; the potential for product recalls, product liability, and other claims or lawsuits against us; our ability to protect our intellectual property; inventory levels, both internally and in the distribution channel, in excess of demand; our ability to identify acquisition candidates, to complete acquisitions of potential acquisition candidates, to integrate acquired businesses with our business, to achieve success with acquired companies, and to realize the benefits of acquisitions in a manner consistent with our expectations; the performance and security of our information systems; our ability to comply with any applicable foreign laws or regulations and the effect of increased protective tariffs; economic, social, political, legislative, and regulatory factors; future investments for capital expenditures, liquidity and anticipated cash needs and availability; the potential for impairment charges; estimated amortization expense of intangible assets for future periods; actions of social or economic activists that could, directly or indirectly, have an adverse effect on our business; disruptions caused by social unrest, including related protests or disturbances; our assessment of factors relating to the valuation of assets acquired and liabilities assumed in acquisitions, the timing for such evaluations, and the potential adjustment in such evaluations; and, other factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2024.

2 © 2024

AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT)

AMERICAN OUTDOOR BRANDS, INC. AT A GLANCE

• HQ & Distribution: Columbia, MO
• Additional Offices: MA (Admin), Asia (WFOE)
• Total Employee Headcount: ~290
• Fiscal Year End: April 30
• Spinoff from Former Parent Company: August 2020
• NASDAQ Global Select: AOUT

FY24 Net Sales	$201.1 million	Line of Credit	$0 outstanding
FY24 Gross Profit Margin	44.0%	Available Capital	~$120 million
FY24 Adjusted EBITDAS	$9.8 million, or 4.9%	Net Sales Target	$400 million
Cash Balance	$29.7 million	Target Adj. EBITDAS Margin %	Mid to High-teens

All metrics as of April 30, 2024	3
	© 2024

OUR BRANDS & PRODUCTS AT A GLANCE

AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT)

21

Brands

We create innovative products, underneath 21 diverse brand names,(1) for consumers who are passionate about the outdoors and shooting sports.

2

Categories

Our brands operate across two (2) major product categories:

54%(2)Outdoor Lifestyle: fishing, camping, land management, meat processing, outdoor cooking

46%(2)Shooting Sports: shotgun sports, reloading, optics, hand tools, security solutions (we do not manufacture or sell firearms)

D&U

Value Creation

Our innovative "Dock & Unlock" formula fuels brand growth.

We have a proven track record of creating new brands, growing existing brands, and efficiently integrating acquired brands to expand our reach into new markets.

392

Patents

We have a tremendous pipeline of disruptive new products, backed by an accelerating portfolio of patents.

In the past three years, alone, our IP portfolio has swelled by ~30% to 392 patents - filed or active - with more on the way.

This moat helps protect our future revenue and profitability.

1. In addition to our 17 owned brands, we also license the Smith & Wesson®, M&P®, Thompson/Center Arms , and Performance Center® brands.
2. Percent of FY24 Net Sales ended April 30, 2024.

4 © 2024

"Leverage our culture of innovation to deliver solutions for consumers in the moments that matter."

AMERICAN OUTDOOR BRANDS

READY FOR THE FUTURE

We believe AOB is capable of generating $400M in net sales over the next 4-5 years

This potential is based upon elements within our control: our innovation pipeline, identified expansion opportunities, and infrastructure in-place.

While we're optimistic our business is capable of achieving this growth target, we are mindful there are several elements outside of our control that could impact timing, such as: consumer demand and spending patterns; health of retailers; geopolitical changes; and changes in legislation(1).

$400M

NET SALES

$70M+

EBITDAS

(NASDAQ: AOUT)

FY25 Outlook as of June 2024	+2.5%
Net Sales growth of up to
Adj. EBITDAS margin of	5.5% - 6.0%

(1) Please refer to our SEC filings for additional risk factors.	6
	© 2024

FY24 Highlights

FISCAL

FY24 HIGHLIGHTS

$201.1M

Net Sales vs. FY23

44.0%	Zero
Gross Margin	Debt Outstanding

2024 HIGHLIGHTS

Compared to FY23, net sales increased 5.2%:

• International net sales increased 35.5%

• Domestic net sales increased 3.7%

• Traditional channel net sales increased 12.3%

• eComm channel sales decreased (3.3%)

Gross margins declined by 210 bps in FY24 vs. FY23 impacted mainly by increased amortization from higher inventory purchases and promotions.

We have no outstanding balance on our $75M expandable line of credit. We have nearly $120M in available capital, including the $15M accordion feature.

Innovation

In FY24, we unveiled several strategically significant new products including the Hooyman Vehicle Spreader, the Grilla Mammoth Vertical Smoker, the Caldwell Claymore PullPup, and the Caldwell Claymore Solo.

Lease Expansion

On January 1, 2024, we assumed full tenancy of our 632k SF headquarters and distribution facility in Columbia, MO. The lease also provides us with an option to expand the facility by up to 491k SF to support future growth.

8 © 2024

OUTDOOR LIFESTYLE CATEGORY LEADING GROWTH

FISCAL			Net Sales vs FY23 & Pre-Pandemic
	$100.0				$90.9		$91.7
		$120.0			$109.4			• Outdoor Lifestyle Net Sales
			$102.3				‒	FY24 vs FY23: +6.9%
2024HIGHLIGHTS			$76.5				$88.9		‒	FY24 vs FY20 (pre-pandemic): +43.0%
($ in millions)	$80.0					• Expected to be a growing percentage of business over time
FY20	FY23	FY24	FY20	FY23
	FY24
		$60.0			+43.0%			•	Growth opportunity supported by:
		$40.0						+0.9%	‒	Fishing (BUBBA)
									‒	Land Management (Hooyman)
		$20.0							‒ Hunting & Outdoor (BOG, Schrade)
		$-							‒ Food Prep & Cooking (MEAT! Your Maker, Grilla)
				Outdoor Lifestyle	Shooting Sports

Mix Shift Toward Outdoor Lifestyle

Outdoor	Shooting	Outdoor	Shooting
Lifestyle	Sports	Lifestyle	Sports
45.7%	54.3%	54.4%	45.6%

• Shooting Sports Net Sales
• • FY24 vs FY23: +3.2%
  • FY24 vs FY20 (pre-pandemic): +0.9%
• Growth opportunity focused on expanding into large, stable categories including:
• • Shotgun Sports (Caldwell)
  • Shooting Accessories (Wheeler, Frankford Arsenal)

FY20 Net SalesFY24 Net Sales9

Note: Growth percentage compared to pre-pandemic net sales includes the acquisition of Grilla	© 2024

10 © 2024

LEVERAGEABLE FINANCIAL MODEL AS BUSINESS SCALES

NET SALES & GROSS MARGIN

FISCAL	$300.0		$276.7	$247.5
$250.0					$206.0	70.0%
			$191.2	$201.1
$200.0	$167.4			60.0%
$150.0
						50.0%
Shooting Sports
2024
$100.0		45.8%	46.2%	46.1%	44.0%	45.0%	40.0%
Outdoor Lifestyle$50.0	42.4%
$-							30.0%
HIGHLIGHTS
	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
						Estimate
ADJ. EBITDAS & ADJ. EBITDAS MARGIN						50.0%
$70.0
$60.0							40.0%
	$50.0		$47.3					30.0%
	$40.0			$35.0
	$30.0							20.0%
	$20.0	$12.3	17.1%	14.2%	$12.8	$9.8	$11.3-$12.3*	10.0%
	$10.0
	7.3%			6.7%	4.9%	5.5-6.0%
	$-			0.0%
		FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
							Estimate
								*Assumes ~$206M in net sales

Note:	US$ in millions. Fiscal year ended April 30. Adjusted EBITDAS is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, goodwill impairment, and stock compensation expense and excludes certain items we consider non-routine. See slide
	30 for a reconciliation of Adjusted EBITDAS. Financials for FY2022 include activity for the period subsequent to the acquisition of Grilla Grills. FY20 includes allocations of certain corporate and public company costs from our former parent company that are not
	indicative of the full costs of a standalone public company.