Sndl Inc. · NASDAQ:SNDL
Sndl — Investor Day (November 2022)
32 slides from Sndl's investor day presentation, November 2022
Slide 1: Investor Day – November 2022
Investor Day – November 2022 NASDAQ: SNDL
Slide 2: 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 ev ents or developments concerning SNDL Inc. (“SNDL" or the "
Slide 3: Overview
350+ 2500+ $922MM Overview Retail Stores Employees Latest Quarter (Liquor + Annualized Net Cannabis) Revenue >820K ft2 $678MM Indoor Cultivation Strategic (Cannabis) Investments 3
Slide 4: Our Story So Far
OUR STORY SO FAR March 31 June 30 September 30 December 31 2020 2020 2020 2020 Net Liquidity Net Liquidity Net Liquidity Net Liquidity - $143.3 million - $116.4 million - $93.1 million $65.7 million January 30 April 9 June 8 August 15 Nov ember 30 December 30 2020 2020 2020 2020 2020 2020 Announced
Slide 5: Operating Segments
Operating Segments Overview Liquor Retail Cannabis Retail Cannabis Investments • Canada’s largest priv ate • Canada’s largest • Canada’s largest indoor • Emphasis on sector liquor retailer cannabis retail footprint purpose-built cannabis cannabis credit and cultiv ation and select M&A focused • Div
Slide 6: The SNDL Advantage
The SNDL Advantage Overview Strong Vertically Retail Strategic Balance Integrated Scale & Cannabis Sheet Cannabis Experience Investments SNDL has one of the Vertical integration SNDL’s profitable SNDL’s investment strongest balance generates economic liquor retail segment portfolio generates sheets
Slide 7: Cannabis: Existential Questions Abound
CANNABIS: EXISTENTIAL QUESTIONS ABOUND CAPITALISM IS THE ROOT CAUSE OF CAPITALISM IS THE INDUSTRY’S THE CURRENT STATE OF THE INDUSTRY SOLUTION FOR A HEALTH FUTURE STATE Massive sector over-funding Sector being starved for capital Banker greed / investor exuberance Early participant banks have exited
Slide 8: Our Vision
OUR VISION T o d elig ht consumer s a nd cr ea te sha r ehold er v a lue thr oug h the stewa r d ship of the la r g est p r iv a te sector , r eg ula ted p r od ucts p la tfor m in Ca na d a . T O D AY T O MO R R O W G R O WT H P H AS E MA R K E T D O MI NAN CE • I nd ust r y r e ck o ning • I nd us
Slide 9: Balance Sheet: Comparable Valuation Analysis
Balance Sheet Overview COMPARABLE VALUATION ANALYSIS Net Cash / (Debt) + Share Share Mkt Total 30D Avg. Daily Total Cash / COMPARABLE VALUATION ANALYSIS Investments LQA Cash Flow Price Price Cap Debt Cash EV2 per FD S/O Value Traded 3 Use In Ops US$ / sh C$ / sh C$mm C$mm C$mm C$mm C$ / sh C$mm Year
Slide 10: Income Statement: Comparable Valuation Analysis
Income Statement Overview COMPARABLE VALUATION ANALYSIS Revenue EBITDA EV / Revenue EV / EBITDA CY21A CY22E CY23E CY21A CY22E CY23E CY21A CY22E CY23E CY21A CY22E CY23E C$mm C$mm C$mm C$mm C$mm C$mm Tilray Brands, Inc. $783 $821 $910 $59 $69 $115 4.6x 4.4x 4.0x 61.3x 52.5x 31.5x Canopy Growth Corpora
Slide 11: SNDL Valuation: Net Asset Value Waterfall
SNDL Valuation Overview NET ASSET VALUE WATERFALL (US$4.77) Denoted in C$/sh C$3.82/sh (US$2.87/sh) SIGNIFICANT UPSIDE POTENTIAL (US$2.60) Implied Residual Value for: 169 Liquor Stores 23 Spiritleaf Corporate Stores 75 Spiritleaf Franchise Stores 85 Nov a Stores (63% Ownership) 448,000 sq.ft. Olds F
Slide 12: SNDL & Valens: The Opportunity
SNDL & VALENS Liquor Retail THE OPPORTUNITY Full suite of cannabis 2.0 manufacturing Largest private sector liquor and cannabis 1 capabilities with industry-leading product innovation 1 retailer with 350+ stores across Canada One of the strongest balance sheets in the 2 Top 10 cannabis branded marke
Slide 13: Investments
Investments {o} sndl
Slide 14: SunStream Overview
SunStream Overview Investments Why was Sunstream launched? ➢ To earn attractive risk-adjusted returns through secured debt, hybrid securities, and distressed debt / equity ➢ To deploy capital into cannabis investments including US opportunities without running afoul of NASDAQ requirements ➢ To lever
Slide 15: SunStream Overview – Investment Opportunity
SunStream Overview – Investment Opportunity Investments The US cannabis market presents a compelling investment opportunity driven by (i) continued market growth, (ii) scarce capital availability, and (iii) depressed valuations Opportunity Drivers Largest Cannabis Market in the World ( 1)(2) Scarce
Slide 16: SunStream Overview – Performance To-Date
SunStream Overview – Performance To-Date Investments Geographical Diversity of Investments (1) Established as a premier capital provider 1 to the US Cannabis Industry since inception Q1/21 Columbia Constructed a portfolio comprised of 2 seven credits (one successfull y realized) Port ugal Built sign
Slide 17: SSB Portfolio Revenue Build vs US MSO Averages
Investments SSB Portfolio Revenue Build vs US MSO Averages SSB Portfolio Cumulative LQA (1) Revenue Build vs US MSO Averages ($’mm) $1,563.1 $518.3 $1,083.2 $390.0 Large-Cap MSO Avg ($2.6bn Avg TEV) $291.0 $128.8 $235.0 $303.8 Mid-Cap MSO Avg ($620mm Avg TEV) Total Revenue A B C D E Exposure Sunstre
Slide 18: Cannabis Operations
Cannabis Operations ae sndl
Slide 19: The SNDL Advantage
The SNDL Advantage Cannabis Operations Cultivating Maximizing Consumer & Flexible Small Batch Product Customer Manufacturing at Scale Quality Centric Small-batch Tailor production to Consistent, high- Achieved a record- market demand approach enables a quality cannabis at weighted average through sc
Slide 20: Cannabis Operations
Cannabis Operations Cannabis Operations SNDL’s agile cultivation and production operations enable our +100MM Grams of annual indoor cultivation capacity1 318 Listings across 10 provinces1 brands and products to meet and delight the rapidly evolving cannabis consumer’s preferences. 24.9 % SNDL record
Slide 21: Olds Facility + Atholville Facility
Cannabis Operations Olds Facility + Atholville Facility = +100mm Grams of Cultivation Capacity 21
Slide 22: Brand Portfolio
Brand Portfolio Cannabis Operations Top Leaf was founded by cannabis enthusiasts under a simple guiding principle: "What do we want Palmetto is always Good to Go. We keep it to smoke?" The answer is easy. We want the best. strange, fun and worth the time. We meander Our endless pursuit for an except
Slide 23: Insights: Current Trends & Opportunities
INSIGHTS CURRENT TRENDS & OPPORTUNITIES
Slide 24: Trends & Opportunities
Trends & Opportunities sndl
Slide 25: Pre-Roll Growth
PRE-ROLL GROWTH Trends & Opportunities 6.5 % Increase in share of retail sales. Largest increase of any format. #1 Pre-Roll Provider, Value Buds Last 12 Weeks 20 % PRICE PER GRAM YoY Pre-Roll + $0.32 (3%) Flower - $0.53 (-9%) YoY Increase SNDL Sales in Vape - $13.57 (-25%) Spiritleaf (Oct) 25
Slide 26: Vertical Integration
Vertical Integration Progress & Opportunities
Slide 27: Vertical Integration: Owned Retail Performance
Vertical Integration OWNED RETAIL 420 % PERFORMANCE YoY Increase in SNDL branded sales through owned retail. 27
Slide 28: Private Label
Vertical Integration VALUE BUDS OBJECTIVES 1. Create sustainable differentiation PRIVATE in a highly competitive environment. 2. Target and capture high value LABEL customers 3. Increase gross margin 28
Slide 29: Value Buds Private Label
Value Buds Private Label Vertical Integration SUSTAINABLE DIFFERENTIATION STRONG BRANDING SUSTAINABLE SUPPLY Emphasized Value Buds branding. Flexible and profitable product Clear and concise connection. formulations. • Blended Formulations • Mutually profitable cost structure for retail & supply 29
Slide 30: Value Buds Private Label: Launch Results
Value Buds Private Label Vertical Integration LAUNCH RESULTS Cookies & Kush 28g $230 +137% $ per Day in Stock vs top selling 28g 20% +6.4% Gross Margin vs Avg 28g SKU 30
Slide 31: Value Buds Private Label: Future Expansion
Vertical Integration Value Buds Private Label FUTURE EXPANSION Large Pack Pre-Rolls Large Pack Milled Flower Large Format Vape 31
Slide 32: Thank You!
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