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WWW.SMITH-WESSON.COM

NASDAQ: SWHC

SMITH & WESSON

HOLDING CORPORPORATION

INVESTOR PRESENTATIONSeptember 2016

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SAFE HARBOR

Certain statements contained in this presentation may be deemed to be forward-looking

statements under federal securities laws, and the Company intends that such forward-looking

statements be subject to the safe-harbor created thereby. Such forward-looking statements

include but are not limited to statements regarding the Company’s vision, mission, and strategy;

the Company’s structure and objectives; the Company’s strategic corporate growth objectives;

the demand for the Company’s products and services; the Company’s new products and

strategic product development; the Company’s market position; the Company’s expansion

goals and opportunities; strategic and financial benefits of recent acquisitions; the Company’s

markets and opportunities for growth; positioning the Company for future growth; and

anticipated revenue, GAAP and non-GAAP earnings per share, tax rate, and share count for the

Company in future periods. The Company cautions that these statements are qualified by

important factors that could cause actual results to differ materially from those reflected by

such forward-looking statements. Such factors include the demand for the Company’s

products, the Company’s growth opportunities, the ability of the Company to obtain operational

enhancements, the success of new products, the potential for increased regulation of firearms

and firearm-related products, and other risks detailed from time to time in the Company’s

reports filed with the SEC.

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To be the leading provider of quality products for the shooting and outdoor enthusiast

To leverage our employees’ capabilities and experiences to design, produce, and market high quality, innovative firearms, accessories, and outdoor products that meet the needs and desires of our consumer and professional customers while delivering a healthy financial performance

-Develop innovative products-Take market share-Grow our brands-Expand organically and inorganically into adjacent and complimentary markets-Enhance and add strategic partnerships

Vision

Mission

Strategy

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6 BIG BOX RETAILERS*

2 BUYING GROUPS*

4 PATHS TO OUR MARKETSDIVERSITY = ENHANCED INSIGHT

*During periods of high consumer demand or fully utilized manufacturing capacity, the company may allocate firearms product based on historical sales volumes. Therefore, those retailers/distributors with higher historical sales volumes will have larger allocations.

14 DISTRIBUTORS*65.6% of Consumer Channel Sales (TTM)

Note: Additional non big-box, direct retail relationships not included

DIR

ECT

DIR

ECT

se

Buying Groups: 600 Member Firearm

Retailers

10,000+ independent

firearm retailers

INTERNET (Outdoor Products Only)se

DIR

ECT

2-S

TEP

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Shared Services

HR, IT, Finance

STRUCTURE & OBJECTIVES

Smith & Wesson Holding Corporation

: : :

Outdoor Products & Accessories

Segment

FirearmsSegment

Electro Optics

Division(CTC)

Potential New

Division

Accessories Division(BTI, BTI

Tools)

Mfg ServicesDivision

(SW Corp)

FirearmsDivision

(SW Corp)

Diversify Revenue: By acquiring counter-cyclical / counter-seasonalbusinesses and selling manufacturing services B2B

Harvest Synergies: From current and future divisions

Leverage Manufacturing: Capability to serve all divisions and drive deeper verticalintegration

Delight Customer: By centralizing logistics and driving excellence incustomer service

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FIREARMS SEGMENT

Our Firearms Division consists of products and servicesmanufactured and sold from our Massachusetts, Maine, andConnecticut facilities. Products include revolvers, pistols,rifles, handcuffs, and related products sold through adistribution chain and directly to consumers and international,state, and federal governments. Our manufacturing servicesdivision provides forging, precision molding, and otherservices to internal and external customers.

$192.4 million in sales, + 47.7% Y/Y

93% of total sales

41.9% gross margin

Q1 FISCAL 2017

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THE #1 FIREARM BRAND IN AMERICA

Leads all firearm manufacturers in total aided brand awareness

Leads in critical attribute ratings: Reliability, durability, and accuracy

Most owned and considered revolver brand in the market: 1 of every 2 revolvers owned is a Smith & Wesson

Endorser brand to M&P®

Source: Smith & Wesson Handgun A&U Research - December 2011 & Tracking Survey June 2015Smith & Wesson Awareness Tracking – Gen Pop – July 2015

Smith & Wesson®

49%

89%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GeneralPopulation 18+

Handgun Buyers& Intenders

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ADJUSTED NICS CY AUGUST 2016HANDGUNS +18.9% LONG GUNS +15.1% (Y/Y )

Source: National Shooting Sports Foundation (NSSF) and Smith & Wesson. The NSSF adjusts FBI NICS (National Instant Criminal Check) background check data to eliminate background checks associated with permit applications and checks on active CCW permit databases. NSSF adjusted NICS data provides a more accurate picture of market conditions. August 2016 data source is a Smith & Wesson estimate, as NSSF has not provided adjusted NICS data for that month.

January February March April May June July August September October November December

CY'08 655,143 735,314 728,992 625,494 591,123 538,963 551,314 653,380 672,421 847,531 1,210,043 1,184,246

CY'09 847,808 911,043 942,288 817,118 662,956 602,191 602,353 687,252 726,572 841,631 861,575 1,031,344

CY'10 715,309 848,036 861,408 731,955 625,763 602,908 628,125 718,971 770,310 854,563 945,463 1,133,371

CY'11 784,856 963,746 990,840 843,484 696,947 679,840 680,258 815,858 878,345 945,088 1,101,076 1,410,937

CY'12 920,840 1,266,344 1,189,152 931,660 840,412 846,437 853,355 1,042,924 1,007,259 1,118,994 1,525,177 2,237,731

CY'13 1,790,154 1,634,309 1,501,730 1,185,231 974,457 872,025 855,259 1,016,559 1,034,701 1,113,818 1,308,100 1,510,529

CY'14 970,510 1,264,010 1,224,705 988,726 877,655 805,571 816,588 989,337 1,024,272 1,174,797 1,329,688 1,624,524

CY'15 1,052,441 1,280,825 1,187,823 987,698 918,707 886,825 946,528 1,031,959 1,071,945 1,211,478 1,432,451 2,235,560

CY'16 1,362,847 1,487,274 1,289,670 1,111,205 928,532 1,140,088 1,210,731 1,211,989

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

August '16 compared to August '15

shows a 17.4% increase

TOTAL

8,993,964

9,534,131

9,436,182

10,791,275

13,780,285

14,796,872

13,090,383

14,244,240

9,742,336

99

FYQ1 FYQ2 FYQ3 FYQ4

ADJUSTED NICS FY AUGUST 2016

Source: NSSF The NSSF adjusts FBI NICS data to eliminate background checks associated with permit applications and checks on active CCW permit databases. NSSF adjusted NICS data provides a more accurate picture of market conditions. August 2016 data source is a Smith & Wesson estimate, as NSSF has not provided adjusted NICS data for that month.

May June July August September October November December January February March April

FY'10 662,956 602,191 602,353 687,252 726,572 841,631 861,575 1,031,344 715,309 848,036 861,408 731,955

FY'11 625,763 602,908 628,125 718,971 770,310 854,563 945,463 1,133,371 784,856 963,746 990,840 843,484

FY'12 696,947 679,840 680,258 815,858 878,345 945,088 1,101,076 1,410,937 920,840 1,266,344 1,189,152 931,660

FY'13 840,412 846,437 853,355 1,042,924 1,007,259 1,118,994 1,525,177 2,237,731 1,790,154 1,634,309 1,501,730 1,185,231

FY'14 974,457 872,025 855,259 1,016,559 1,034,701 1,113,818 1,308,100 1,510,529 970,510 1,264,010 1,224,705 988,726

FY'15 877,655 805,571 816,588 989,337 1,024,272 1,174,797 1,329,688 1,624,524 1,052,441 1,280,825 1,187,823 987,698

FY'16 918,707 886,825 946,528 1,031,959 1,071,945 1,211,478 1,432,451 2,235,560 1,362,847 1,487,871 1,297,275 1,130,238

FY'17 928,532 1,140,088 1,210,731 1,211,989

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

August '16 compared to August '15

shows a 17.4% increase

TOTAL

9,172,582

9,862,400

11,516,345

15,583,713

13,133,399

13,151,219

15,013,684

4,491,340

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ADJUSTED NICS +AVG. 7.2% ANNUALLY OVER 9 YEARS*

*CY07 – CY16 YTDSource: NSSF, Smith & Wesson, and https://www.fbi.gov/about-us/cjis/nics

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Actual Adj NICS Linear (Actual Adj NICS)

9,534,131+6.0% Y/Y

9,436,182-1.0% Y/Y

13,780,285+27.7% Y/Y

14,796,872+7.4% Y/Y

13,090,383-11.5% Y/Y

8,993,964+11.3% Y/Y

14,244,240+8.8% Y/Y

8,083,470+1.6% Y/Y

10,791,275+14.4% Y/Y

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Total Handguns & Long Guns Total Handguns Total Long Guns*

Source: Federal Excise Tax collections on manufacturing sales value as translated to sales by NSSF. *Long guns include all rifles, shotguns, and muzzle loaders.

INDUSTRY SHIPMENTS: HANDGUNS AND LONG GUNS

(in Millions)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

2008 2009 2010 2011 2012 2013 2014 2015 2016

Q4

Q3

Q2

Q1Q1 19.7%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Q4

Q3

Q2

Q1

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Q4

Q3

Q2

Q1Q1 26.7%

Q1 11.5%

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Smith & Wesson SW22 Victory™ targetpistol, a fully featured .22LR pistolsuitable for multiple sporting applications.Standard with adjustable fiber optic sightsand match grade, interchangeable barrelfor superb accuracy at the range or in thefield. MSRP $409

FIREARMS: NEW PRODUCTS

The acclaimed Smith &Wesson PerformanceCenter M&P Shieldpistol, in both 9mm and.40 S&W, with factoryported barrel and slide.Engineered by MasterGunsmiths, the newM&P Shield Portedpistols, provide a host ofpremium featuresdesired by the mostastute shooters. MSRP$519

Our custom designed, machine engravedSW1911 pistol, featuring a scrollworkdesign created by Smith & Wesson’sMaster Engraver using a highly precisediamond-tipped tool. The engravingembellishes the all-steel canvas andelevates the venerable 1911 platform to anew level of sophistication and beauty.MSRP $1,219

T/C Compass®, an affordable, feature-rich,bolt-action rifle that exceeds expectationsin terms of accuracy, reliability andfunctionality. MSRP $399

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OUTDOOR PRODUCTS & ACCESSORIES SEGMENT

$14.6 million in sales, - 16.9% Y/Y

7% of total sales

47.3% gross margin

The Accessories Division was established in December 2014 with theacquisition of Battenfeld Technologies (BTI) in Missouri, whichestablished our Accessories Division. We acquired the assets of TaylorBrands, thereby eliminating a licensee and adding several knife brandsto our accessories portfolio. An Electro-Optics Division was establishedin August 2016 with the acquisition of Crimson Trace Corporation (CTC)in Oregon, a leader in laser sighting and tactical lighting.

Q1 FISCAL 2017

(Does not include Q2 acquisitions of Crimson Trace, Taylor Brands)

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• 121 new SKU’s successfully launched at the 2016 SHOT SHOW

• Product development focus on innovation and productivity remain incredibly strong

• Engineering team expansions have more than doubled new product introductions

2016 new SKU count by Brand

Caldwell® 54

Frankford® 4

LockDown® 3

Tipton® 3

Wheeler® 12

Hooyman® 13

S&W® 9

M&P® 17

TC® 6

TOTAL 121

NEW PRODUCTS:ACCESSORIES DIVISION

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• Acquired August 2016

• Long-standing licensee of ours that produced and sold Smith & Wesson and M&P branded knives

• Paid cash for asset acquisition

• Owner of many highly-regarded, legacy knife brands including Schrade, Uncle Henry, Old Timer, and Imperial

• This business will tuck-in to our accessories division and will provide us with an opportunity to deliver future organic growth

ACQUISITION: TAYLOR BRANDS (assets)

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• Acquired August 2016

• Crimson Trace will serve as ideal platform for our new Electro-Optics Division

• The undisputed market leader in laser sighting & tactical lighting systems

• Long been a key supplier to our company

• Paid cash for acquisition

• New Electro-Optics Division will provide ample opportunities (organic/inorganic) for expansion

ACQUISITION: CRIMSON TRACE

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Since 2011, our strategy has focused on unlocking the tremendous value in our firearms business

Our parallel strategy has been to expand, when the time was right, into adjacent markets

(i.e. Rugged Outdoor Market – which addresses needs of our core firearm consumers)

In 2014, we acquired BTI and entered the firearm-related and outdoor lifestyle accessories business

In 2016, we acquired Crimson Trace and entered the electro-optics business

Our objective is to expand our multi-divisional structure via additional divisions to facilitate growth and value creation (will serve Firearms & Accessories divisions, as well as future divisions)

NEW - Manufacturing Services Division

NEW – Electro-Optics Division

NEW - Shared Services Division

With strong teams operating each division, we can continue to unlock further value in firearms, while we explore acquisitions that can:

Either tuck-in to existing divisions, or operate as standalone divisions within this scalable operating structure

Deliver strong brands and products that serve the needs, wants, and desires of our core consumers

Meet strict criteria for return on investment (ROI)

Build upon our record of execution and long-term shareholder value creation

POSITIONING OUR COMPANY

FOR FUTURE GROWTH

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Organic: Expand breadth of product portfolio

and strive towards our goal of being the

leading manufacturer in each major product

category

Firearms

EXPAND ORGANICALLY & INORGANICALLY

Inorganic: Seek companies that are strong in

product categories where S&W is weak or non-

existent, such as bolt action rifles, shotguns,

lever action rifles.

Organic: Maintain manufacturing process

flexibility, maximize plant utilization, drive

increased margins via cost reduction, and sell

manufacturing services externally (B2B)

Manufacturing Services

Inorganic: Seek companies that deliver

vertical integration of supply chain, cost

reduction, streamlined product development

processes, or incremental B2B sales, such as

MIM, stamping, and finishing

Organic: Continue new product development

and enhance existing products while

expanding customer base

Accessories

Inorganic: Seek companies with outdoor

accessory products and similar (offshore)

sourcing model. Ideal candidates have

existing sourcing base and are easily

integrated (purchase only IP and inventory)

Electro-Optics

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FINANCIAL REVIEW

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REVENUE - ANNUAL U.S.$ Millions

Note: Excludes Walther sales – an agreement which ended in Fiscal 2013

Note: Guidance for revenue, GAAP earnings per share, non-GAAP earnings per share, tax rate and share count reflects information as of September 1, 2016. The Company is not updating any of this guidance to the present date nor does its inclusion constitute a reiteration or modification of this information. *See Appendices for GAAP to non-GAAP reconciliations.

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

FY13 FY14 FY15 FY16 FY17

$546

$621 $551$723

$900-$920(Estimate)

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EARNINGS PER SHARE - ANNUAL

Note: Guidance for revenue, GAAP earnings per share, non-GAAP earnings per share, tax rate and share count reflects information as of September 1, 2016. The Company is not updating any of this guidance to the present date nor does its inclusion constitute a reiteration or modification of this information. *See Appendices for GAAP to non-GAAP reconciliations.

= Represents non-GAAP

U.S. $

FY13 FY14 FY15 FY16 FY17

$1.18

$1.49

$0.90

$1.68

$2.09-$2.19(Estimate)

$1.23

$1.55

$1.02

$1.83

$2.38-$2.48(Estimate)

= Represents GAAP

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REVENUE - QUARTERLY

Note: Excludes Walther sales – an agreement which ended in Fiscal 2013

U.S.$ Millions

$0

$50

$100

$150

$200

$250

1Q14 1Q15 1Q16 1Q17

$169

$132

$130

$207

$18

$15

Outdoor Products & Accessories Firearms

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MARGINS - QUARTERLY

GROSS MARGIN OPERATING PROFIT MARGIN

ADJUSTED EBITDAS MARGIN

1Q14 1Q15 1Q16 1Q17

42.6%

37.2%39.8%

42.3%

= Represents non-GAAP: See Appendices for GAAP to non-GAAP reconciliations.

1Q14 1Q15 1Q16 1Q17

28.1%

19.5% 20.2%25.4%

1Q14 1Q15 1Q16 1Q17

32.3%

25.4% 26.3%31.8%

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PROFITABILITY - QUARTERLY

EARNINGS PER DILUTED SHARENET INCOME(U.S.$ Millions)

1Q14 1Q15 1Q16 1Q17

$26.5

$14.6

$17.7

$35.1

= Represents non-GAAP: See Appendices for GAAP to non-GAAP reconciliations.

1Q14 1Q15 1Q16 1Q17

$0.40

$0.26

$0.32

$0.62

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INCOME STATEMENT

CONDENSED INCOME STATEMENT

For the three months ended: (U.S.$ Thousands, except per share data)

July 31, 2016 July 31, 2015

Net sales $206,951 $147,763

Cost of sales 119,382 88,893

Gross profit 87,569 58,870

Total operating expenses 35,045 29,053

Operating income 52,524 29,817

Total other (expense)/income (2,012) (7,206)

Income taxes 17,896 8,199

Net income 32,616 14,412

Net income per share – Diluted $0.57 $0.26

Weighted average shares outstanding – Diluted 56,883 55,487

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BALANCE SHEET & CASH FLOW

CONDENSED BALANCE SHEET CONDENSED CASH FLOWS

For the period ending: (U.S.$ Thousands) For the three months ended: (U.S.$ Thousands)

July 31, 2016 April 30, 2016 July 31, 2016 July 31, 2015

Cash and cash equivalents $ 215,012 $ 191,279 Net cash provided by operating activities $ 38,077 $ 16,625

Accounts receivable 55,711 57,792 Net cash used in investing activities (11,115) (7,150)

Inventories 87,649 77,789Net cash (used in)/provided by financing activities (3,229) 3,720

Other current assets 7,417 6,371 Net increase in cash $ 23,733 $ 13,195

Total current assets 365,789 333,231

Long-term assets 288,894 286,272

Total assets $ 654,683 $ 619,503

Current liabilities $ 126,466 $ 122,592

Other non-current liabilities 22,651 22,531

Notes payable, net of current portion 165,205 166,564

Total liabilities 314,322 311,687

Total equity 340,361 307,816

Total liabilities & equity $ 654,683 $ 619,503

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KEY FINANCE ACTIVITIESOptimizing capital efficiency, lowering the average weighted cost of capital, and strengthening the balance sheet to support future growth initiatives

Issued $75M of 5.000% Senior Notes due 2018

Expanded credit facility from $75M to $125M

Borrowed $100M toward the acquisition of BTI (the company’s new accessories division)

Repaid entire $100M prior to April 2015 utilizing cash flows from operations

Expanded credit facility from $125M to $175M

Added $105M Term Loan A due 2020 (Interest rate 3.06%)

Repurchased $100M of 5.875% Senior Notes due 2017 with 2.9375% call premium

SHARE REPURCHASE PROGAM HIGHLIGHTS $165M in cumulative share repurchases since 2012 (14.4M shares)

Represents 21.7% reduction in public float

New $50M repurchase authorized by the Board of Directors in June 2015

JULY 2014 DECEMBER 2014 APRIL/JUNE 2015

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FINANCIAL GUIDANCE

Note: Guidance for revenue, GAAP earnings per share, non-GAAP earnings per share, tax rate, and share count reflects information as of September 1, 2016. The Company is not updating any of this guidance to the present date nor does its inclusion constitute a reiteration or modification of this information. *See Appendices for GAAP to non-GAAP reconciliations.

FISCAL SECOND QUARTER 2017

Revenue $220M to $230M

GAAP Earnings Per Share $0.44 to $0.48

Non-GAAP Earnings Per Share* $0.53 to $0.57

FISCAL YEAR 2017

Revenue $900M to $920M

GAAP Earnings Per Share $2.09 to $2.19

Non-GAAP Earnings Per Share* $2.38 to $2.48

Tax Rate

Share Count

Estimate

Estimate

36%

57.1M

(Fiscal Year Ending April 30)

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APPENDICES

30

INCOME STATEMENT

31

GAAP to NON-GAAP RECONCILIATION

In this presentation, certain non-GAAP financial measures, including “non-GAAP net income,” “AdjustedEBITDAS,” and “free cash flow” are presented. From time-to-time, the company considers and uses thesesupplemental measures of operating performance in order to provide the reader with an improvedunderstanding of underlying performance trends. The company believes it is useful for itself and thereader to review, as applicable, both (1) GAAP measures that include (i) amortization of acquiredintangible assets, (ii) TCA accessories transition costs, (iii) discontinued operations, (iv) DOJ and SEC costsincluding insurance recovery costs, (v) acquisition-related costs, (vi) bond premium paid, (vii) debtextinguishment costs, (viii) the tax effect of non-GAAP adjustments, (ix) net cash provided by operatingactivities, (x) net cash used in investing activities, (xi) receipts from note receivable, (xii) interest expense(xiii) income tax expense, (xiv) depreciation and amortization, and (xv) stock-based compensationexpense; and (2) the non-GAAP measures that exclude such information. The company presents thesenon-GAAP measures because it considers them an important supplemental measure of its performance.The company’s definition of these adjusted financial measures may differ from similarly named measuresused by others. The company believes these measures facilitate operating performance comparisonsfrom period to period by eliminating potential differences caused by the existence and timing of certainexpense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures havelimitations as an analytical tool and should not be considered in isolation or as a substitute for thecompany's GAAP measures. The principal limitations of these measures are that they do not reflect thecompany's actual expenses and may thus have the effect of inflating its financial measures on a GAAPbasis.

32

GAAP to NON-GAAP RECONCILIATION

33

GAAP to NON-GAAP RECONCILIATION

34

GAAP to NON-GAAP RECONCILIATION

GAAP earnings per share - diluted 1.18$ 1.49$ 0.90$ 1.68$ 2.09$ 2.19$

Fair value inventory step-up and backlog expense — — 0.08 — 0.07 0.07

Amortization of acquired intangible assets — — 0.07 0.18 0.33 0.33

Acquisition-related costs — 0.01 0.04 — 0.03 0.03

SEC settlement costs — 0.03 — — — —

Debt extinguishment costs — 0.01 — 0.03 — —

Bond premium paid 0.01 0.07 — 0.05 — —

Discontinued operations 0.07 (0.01) — — — —

TCA accessories transition costs — — — — — —

DOJ/SEC costs including insurance recovery costs 0.01 — — (0.03) — —

Severance costs — — — — — —

Tax effect of non-GAAP adjustments (0.04) (0.05) (0.07) (0.08) (0.14) (0.14)

Non-GAAP earnings per share - diluted 1.23$ 1.55$ 1.02$ 1.83$ 2.38$ 2.48$

SMITH & WESSON HOLDING CORPORATION

RECONCILATION OF GAAP EARNINGS PER SHARE TO NON-GAAP EARNINGS PER SHARE

(Unaudited)

2013 2017 (Guidance range)

For the years ended April 30,

2014 2015 2016

35

FREE CASH FLOW

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JAMES DEBNEYPRESIDENT &CHIEF EXECUTIVE OFFICER

JEFFREY D. BUCHANANEXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, CHIEF ADMINISTRATIVE OFFICER & TREASURER

EXPERIENCED LEADERSHIP

20+ years: multinational consumer and business-to-business environments, including President of Presto Products Co., a $500 million business unit of Alcoa Consumer Products

25+ years: public and private company experience in financial management and law; CFO for publicly traded, global manufacturing company; law firm partner; public company board member

37

WWW.SMITH-WESSON.COM

NASDAQ: SWHC

SMITH & WESSON

HOLDING CORPORATION

INVESTOR PRESENTATIONSeptember 2016