Slide 1: Disclaimer
Disclaimer Forward-looking statements Certain statements contained in this presentation may constitute forward-looking information and statements. All statements in this presentation, other than statements of historical fact, that address events or developments concerning SNDL Inc. (“SNDL" or the "C
Slide 2: Corporate Presentation Second Quarter 2024
Corporate Presentation SECOND QUARTER 2024 August 2024 NASDAQ: SNDL
Slide 3: Our Purpose
SNDL Corporate Presentation Second Quarter 2024 Our Purpose Bringing people together through exceptional products and experiences 3 4
Slide 4: Operating Segments
SNDL Corporate Presentation Second Quarter 2024 Operating Segments LIQUOR RETAIL CANNABIS RETAIL CANNABIS OPERATIONS INVESTMENTS • Canada’s largest • Canada’s largest • Robust innovation • Emphasis on cannabis private sector liquor cannabis retail capabilities through credit and select M&A retailer
Slide 5: The SNDL Advantage
SNDL Corporate Presentation Second Quarter 2024 The SNDL Advantage Strong Vertically Retail Strategic Balance Integrated Scale & Cannabis Sheet Cannabis Experience Investments SNDL has one of the Vertical integration SNDL’s profitable SNDL’s investment strongest balance generates economic Liquor Ret
Slide 6: Operating Highlights
SNDL Corporate Presentation Second Quarter 2024 OPERATING $850MM Market Cap1 HIGHLIGHTS 355 Retail Stores (Liquor + Cannabis Retail)1 ~2600 $912MM Employees1 Trailing 12-month revenue $nil $183MM Debt Unrestricted Cash 6 1As of August 1, 2024, exchange rate of 1.385; shares outstanding based on most
Slide 7: Q2 2024 Company Highlights
Q2 2024 Company Highlights CONTINUED REVENUE RECORD GROSS IMPROVED OPERATING GROWTH IN CANNABIS MARGIN INCOME SNDL has reported The increase in gross margin SNDL showcased improved consistent revenue was largely driven by operating income across all improvement in Cannabis productivity initiatives i
Slide 8: Q2 Financial Highlights
Q2 Financial Highlights Net Revenue $228.1MM ($3.8MM) Decrease YOY (2%) Decrease YOY SNDL delivered solid results and is well- positioned for the second half of 2024 Gross Profit $58.2MM $6.2MM 12% and beyond Increase YOY Increase YOY The Company reported Revenue growth in both Gross Margin 25.5% 3.
Slide 9: Liquor Retail
Liquor Retail
Slide 10: Liquor Retail Highlights
Liquor Retail SNDL Corporate Presentation Second Quarter 2024 Liquor Retail Highlights Proprietary Continued Expanded Community Data Gross Profit Liquor Retail Engagement Program Growth Footprint Scaled its proprietary Achieved record Ramped up its 13th Ace Liquor was a proud data licensing program
Slide 11: Liquor Retail Q2 2024 Results
Liquor Retail Q2 Net Revenue Gross Profit 2024 Liquor Retail $140.6MM $35.7MM Decrease of $11.1 million Increase of $0.4 million Results 7.3% decrease year-over-year 1% increase year-over-year • Category decline impacted by lower store traffic • Private label sales increased 10% year-over-year • Imp
Slide 12: Canada's Largest Private Sector Liquor Retailer
Q2 Liquor Retail 2024 168 Retail locations in Alberta and British Columbia1 $568MM Trailing 12-month revenue Canada’s Largest Private Sector Liquor Retailer SNDL's Liquor Retail segment has substantial experience 17% 3.5MM and scale operating in competitive & regulated retail environments and genera
Slide 13: Liquor Retail Brand Portfolio
Wine and Beyond is Western Canada’s largest liquor stores. We pride Liquor Retail ourselves on having a selection of over 6,000 wines, 2,500 spirits and Brand 2,200 beers Our 13 locations are known for their incredible selection, unique product offerings, and staff with excellent product knowledge a
Slide 14: Cannabis Retail
Cannabis Retail o sndl
Slide 15: Cannabis Retail Highlights
Cannabis Retail SNDL Corporate Presentation Second Quarter 2024 Cannabis Retail Highlights Corporate Retail Private Regulatory Store Count Expansion Label Improvements Growth into BC Innovation Expanded the Value Launched the Value Value Buds Diesel and Recent updates to Buds footprint with the Buds
Slide 16: Cannabis Retail Q2 2024 Results
Cannabis Retail Q2 Net Revenue Gross Profit 2024 Cannabis Retail $76.1MM $19.3MM Increase of $4.2 million Increase of $1.5 million Results 6% increase year-over-year 8.4% increase year-over-year • Same store sales growth of 2.3% year-over-year • Additional Net revenue growth from new store openings
Slide 17: Canada's Largest Private Sector Cannabis Retailer
Q2 Cannabis Retail 2024 187 Retail Locations in AB, BC, MB, ON and SK1 $298MM Trailing 12-month revenue Canada’s Largest Private Sector Cannabis Retailer With our Value Buds, Spiritleaf, Superette and Firesale 10% 2.6MM Cannabis banners combined, SNDL has the largest cannabis retail footprint in Can
Slide 18: Cannabis Retail Brand Portfolio
Cannabis Retail Brand Portfolio Spiritleaf aims to be the most knowledgeable and trusted source of Superette is a retail brand that makes buying cannabis as enjoyable as recreational cannabis, offering a consuming it. Every thoughtful detail of premium consumer experience. We our brand, whether in-s
Slide 19: Cannabis Operations
Cannabis Operations & sndl
Slide 20: Cannabis Ops Highlights
Cannabis Operations SNDL Corporate Presentation Second Quarter 2024 Cannabis Ops Highlights International Gross Profit Increased 30% QoQ Expansion Expansion Distribution Growth in Adult Rec Expanded cultivation Achieved positive gross To drive market share Achieved through efforts and pursuing EU- m
Slide 21: Cannabis Operations Q2 2024 Results
Cannabis Operations Q2 Net Revenue Gross Profit 2024 Cannabis Operations $25.0MM $3.2MM Increase of $4.0 million Increase of $4.4 million Results 19% increase year-over-year +300% increase year-over-year • Net revenue growth as a result of increasing provincial board and B2B distribution driven by c
Slide 22: One of Canada's Largest Vertically Integrated Cannabis Companies
Q2 Cannabis Operations 2024 110,000ft Cannabis cultivation at 2 $94.4MM Trailing 12-month revenue One of Canada’s Atholville, New Brunswick facility largest vertically integrated cannabis companies Specializing in low-cost biomass sourcing, premium indoor cultivation, product innovation, and low-cos
Slide 23: Cannabis Operations Facility Highlights
EDIBLES Cannabis Operations Kelowna, British Columbia (LYF) • Large-scale edible production EXTRACTION & • In-house test kitchen for research and development PROCESSING • Current volume of 20 million Kelowna, British Columbia (K1 & K2) gummy units per year and 5 million chocolates per year • Leading
Slide 24: Cannabis Operations Brand Portfolio
PREMIUM Cannabis Operations Brand Portfolio CORE VALUE 24
Slide 25: Investments
Investments
Slide 26: Investments
Investments Strategically deployed capital for the $600.5MM 5 cannabis Book value of all cannabis SunStream credit portfolio industry industry investments1 investments1 SunStream’s investment portfolio can be bifurcated into (i) performing credits and (ii) equitization $571.2MM $29.3MM opportunities
Slide 27: Investment Portfolio (Supplemental Selected Investment Information)
Investment Portfolio (Supplemental Selected Investment Information) Investments Credit exposure includes performing loans and investments under restructuring in the US and Canada Amounts in CAD Million. FX CAD/US: 1.37 PERFORMING LOANS INVESTMENTS UNDER RESTRUCTURING Ascend (2) Jushi (2) Cannabist P
Slide 28: USA Investment Portfolio Under Restructuring
USA Investment Portfolio Under Restructuring Investments Parallel and Skymint assets provide several investment optionalities, including potential future equitization and exposure to US footprint PARALLEL SKYMINT Retail Stores State Operations Retail Stores State Operations Retail Stores Florida 51
Slide 29: Potential SunStream USA Compared to US MSOs
Potential SunStream USA Compared to US MSO’s Investments SSB Equitization Opportunities LQA(1) Revenue vs US MSO’s ($Millions) (2) In USD + $1,600 $1,380 Potential Equitized $1,400 Portfolio(2) $1,173 $1,200 $1,108 Revenue (#039;mm) $1,000 $919 $903 $800 $739 $583 Potential Equitized $600 $497 $477 Por
Slide 30: Valuation Analysis
SNDL Valuation Valuation Analysis NET ASSET VALUE WATERFALL Denoted in C$/sh $1.60 $4.42 (US$3.19) ($1.36) (US$0.98) UPSIDE POTENTIAL $3.06 (US$2.21) $2.06 Implied Residual Value for: 168 Liquor Stores 20 Corporate Stores 62 Franchise Stores 4 Superette Stores1 1 Firesale Store1 100 Value Buds Store
Slide 31: Analyst Coverage
Analyst Coverage Frederico Gomes ATB Financial Yewon Kang Canaccord Genuity Tomas Bottger Investor Relations investors@sndl.com
Slide 32: Appendices
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Slide 33: Investments
Investments 8 1 92 167 3 2 5 1 5 1 77 1 1 33 NOTES Data as of August 1, 2024