Canopy Growth Corporation · TSX:WEED
Canopy Growth — FY2022 Earnings Presentation
25 slides from Canopy Growth's earnings presentation, May 2022
Slide 1: Canopy Growth Q4 & FY2022 Earnings Presentation
CANOPY GROWTH Q4 & FY2022 EARNINGS PRESENTATION
Slide 2: Disclaimers and Cautionary Statements
DISCLAIMERS AND CAUTIONARY STATEMENTS
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies, Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense);
Slide 4: Today's Speakers
TODAY'S SPEAKERS DAVID KLEIN JUDY HONG CEO CFO
Slide 5: Agenda
AGENDA ¢ Key Takeaways ¢ Progress Against Key Priorities * Q4 & FY2022 Financial Results Review ° Q&A + Unless otherwise indicated, all financial information in this presentation is reported in Canadian dollars. + Unless otherwise indicated, market share data disclosed in this presentation is calcul
Slide 6: Key Takeaways
KEY TAKEAWAYS FY2022 saw progress against premiumization Strategy, growth of STORZ & BICKEL AND BioSteel Consumer Brands • o o o o • • In FY2023, canopy plans to further advance its aspiration to become the premium brand cannabis company in north America driven by:
Slide 7: Progress against Premiumization strategy
Progress against Premiumization strategy • • • • • •
Slide 8: Progress against Premiumization strategy
Progress against Premiumization strategy • • • • • •
Slide 9: Driving growth in our Consumer Brands
Driving growth in our Consumer Brands • • • • • 1 IRI data for the 4 weeks ended April 17, 2022
Slide 10: Driving brand awareness through activations
Driving brand awareness through activations
Slide 11: Strengthening U.S. THC Ecosystem
Strengthening U.S. THC Ecosystem INVESTING IN PLANS TO ACQUIRE LEADING COMPANIES, IN MUST-WIN CATEGORIES, WITH BRANDS THAT CAN SCALE ACROSS NORTH AMERICA JETTY Extracts Wana Brands 2 Based on March 2022 BDSA data for dollars sold for all product categories 3 Based on March 2022 BDSA data for dollars
Slide 12: Leveraging our U.S. THC Ecosystem
Leveraging our U.S. THC Ecosystem SIGNIFICANT OPPORTUNITY TO SCALE JETTY EXTRACTS AT STATE-LEVEL ACROSS THE U.S. LEVERAGING OUR U.S. ECOSYSTEM, WANA BRANDS FOOTPRINT EXPECTED TO REACH 17 LICENSED STATES THIS CALENDAR YEAR 5
Slide 13: Q4 & FY2022 Financial Results
Q4 & FY2022 FINANCIAL RESULTS
Slide 14: Q4 & FY2022 Key Financial Highlights
Q4 & FY2022 KEY FINANCIAL HIGHLIGHTS • •
Slide 15: Revenue Performance by Segment
REVENUE PERFORMANCE BY SEGMENT 3. For Q4 FY2022, amount reflects other revenue adjustments of $1.0 million (Q4 FY2021 – $0.3 million). For FY2022, amount reflects other revenue adjustments of $4.3 million (FY2021 - $0.7 million). 4. For Q4 FY2022, amount reflects other revenue adjustments of $3.9 mi
Slide 16: Revenue Performance by Form
REVENUE PERFORMANCE BY FORM vs. vs. ns of Canadian dollars, unaudited _Q4FY2022 Q4FY2021 FY2022 FY202; Canadian Recreational Cannabis Dry Bud’? $42 (38%) $212 (N%) Oils and Softgels’? $5 (18%) $25 (11%) Beverages, Edibles, Topicals, and Vapes'? $8 13% $32 1% Other Revenue Adjustments? ($3) (6%) ($7)
Slide 17: Gross Margin performance
Gross Margin performance • • • • • •
Slide 18: OpEx Trend
OPEX TREND OpEx as a Percentage of Net Sales Quarterly OpEx Trend (C$ in 000s) (Q4 FY2021 vs. Q4 FY2022) 180,000 mTotal OpEx = Total OpEx Ex-SBC 60% mQ4FY2021 Q4FY2022 160,000 50% 140,000 120,000 40% 100,000 30% 80,000 60,000 20% 40,000 10% moe LJ || | o 0% Q4FY2021 Q1IFY2022 Q2FY2022 Q3FY2022 Q4FY2
Slide 19: Adjusted EBITDA and Free Cash Flow
ADJUSTED EBITDA AND FREE CASH FLOW • • • •
Slide 20: Appendix
Appendix
Slide 21: Adjusted Gross Margin (Non-GAAP) Reconciliation
ADJUSTED GROSS MARGIN1 (NON-GAAP) RECONCILIATION
Slide 22: Adjusted EBITDA (Non-GAAP) Reconciliation
ADJUSTED EBITDA1 (NON-GAAP) RECONCILIATION
Slide 23: Adjusted EBITDA (Non-GAAP) Reconciliation
ADJUSTED EBITDA1 (NON-GAAP) RECONCILIATION
Slide 24: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW1 (NON-GAAP) RECONCILIATION
Slide 25: Thank you
THANK YOU 28