American Outdoor Brands : Investor Presentation - March 2023

NASDAQ: AOUT

INVESTOR PRESENTATION

March 2023

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 including delivery of product stemming from port congestion and related transportation challenges; 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, product components, and raw materials; our ability to maintain or strengthen our brand recognition and reputation; the 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; an increase of emphasis on private label products by our customers; 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; the potential for increased regulation of firearms and firearms-related products; the effect of political pressures on firearm laws and regulations; the potential impact on our business and operations from the results of federal, state, and local elections and the policies that may be implemented as a result thereof; our ability to realize the anticipated benefits of being a separate, public company; 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, 2022.

© 2023 American Outdoor Brands, Inc. All Rights Reserved

2

Q3 FY23 Highlights

DISCIPLINED EXECUTION OF LONG-TERM VALUE CREATION STRATEGY

AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT)

1	ORGANIC GROWTH

2 M&A

3	RETURN CAPITAL
TO SHAREHOLDERS

PATH TO $400M+

SEEK TARGETS THAT MEET OUR IDEAL CRITERIA

SHARE

REPURCHASE

PROGRAM

Q3 FY23 Achievements

• Net sales growth of 17.4% vs. pre-COVID Q3 FY20
• E-commercegrowth of 53.9% vs. Q3 FY20
• Gross margin of 47.1%, +130 basis points YOY
• Operating cash flow of $18.1M
• Multiple new products introduced
• Continued to monitor M&A landscape for

opportunities that meet our criteria

• $10M Stock Buyback Program announced Sept 2022
• $1.8M purchased in Q3 with an average price of $9.43
• FY23 YTD $2.6M total purchased (2% of O/S shares)

© 2023 American Outdoor Brands, Inc. All Rights Reserved

4

AMERICAN OUTDOOR

OUTDOOR LIFESTYLE CATEGORY LEADING GROWTH

Net Sales vs Pre-Pandemic

		• Outdoor Lifestyle Net Sales
		‒ Q3 FY23 vs Q3 FY22: -23.2%
		‒ Q3 FY23 vs Q3 FY20 (pre-pandemic): +39.1%
		• Expected to be a growing percentage of business over time
		• Growth supported by:
+39.1%	-1.8%	‒	Fishing (BUBBA)
‒	Land management (Hooyman)
		‒ Meat processing (MEAT! Your Maker)
		‒	Outdoor cooking (Grilla)

BRANDS (NASDAQ: AOUT)

Outdoor Lifestyle

Shooting Sports

Mix Shift Toward Outdoor Lifestyle

Outdoor	Shooting	Outdoor	Shooting
Lifestyle	Sports	Lifestyle	Sports
47.0%	53.0%	55.6%	44.4%

• Shooting Sports Net Sales
• • Q3 FY23 vs Q3 FY22: -32.1%
  • Q3 FY23 vs Q3 FY20 (pre-pandemic):-1.8%
• Growth opportunity in shooting sports focused on expanding into large, stable categories including:
• • Shotgun sports (Caldwell)
  • Reloading (Frankford Arsenal)
  • Optics (Crimson Trace)
  • Hand Tools (Wheeler)
  • Security Solutions (Lockdown)

Q3 FY20 Net Sales

Q3 FY23 Net Sales

© 2023 American Outdoor Brands, Inc. All Rights Reserved

5