Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Investor Presentation (March 2020)
20 slides from Charlotte's Web's investor presentation, March 2020
Slide 1: Building a Global CPG Company
BUILDING A GLOBAL CPG COMPANY TSX: CWEB | OTCQX: CWBHF Q1 2020
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Information Certain statements contained in this presentation constitute forward-looking statements and forward-looking information (collectively, “forward-looking statements”). Such forward-looking statements relate to possible events, conditions or financial performance
Slide 3: The Stanley Brothers
Founded in 2013 The Stanley Brothers Boulder, Colorado CHARLOT TE’S WEB WAS NOT Our dedication to creating the best hemp extracts makes us an STARTED AS A COMPANY, industry leader for product quality, safety and consistency. We believe our high-quality hemp extract harnesses powerful IT WAS STARTED
Slide 4: Strong Fundamentals, Premier Brand, Scaling to Accelerate
ST RO N G PREMIER S C A L I N G TO F U N DA M E N TA L S BRAND AC C E L E R AT E 4
Slide 5: #1 Brand in the Total Hemp-Derived CBD Market
#1 BRAND IN THE TOTAL HEMP - DERIVED CHARLOTTE’S WEB CBD MARKET 1 ANNUAL REVENUE ($MM) 69.5 OUTPACING THE INDUSTRY WITH 2018 REVENUE GROWTH OF 40.0 74% year-over-year2 14.7 3 2016 2017 2018 (1) By market share Company estimates 5 (2) Represents 2018 growth over 2017 (3) Charlotte’s Web, Inc. revenue
Slide 6: Vertically Integrated Supply Chain Advantage
VERTICALLY INTEGRATED SUPPLY CHAIN ADVANTAGE PROPRIETARY GENETICS • Quality, consistency and trust LONG-TERM CULTIVATION PARTNERSHIPS • Traceability of ingredient streams HARVEST & PROCESS BIOMASS • Transparency of the manufacturing process IN-HOUSE EXTRACTION • Grown in the U. S. A. PRODUCTION • Pr
Slide 7: Tested. Certified. Researched.
TESTED. CERTIFIED. RESEARCHED. All Products Tested up to 20 Times • Testing through entire cultivation, extraction and manufacturing to final packaged product • Includes 60-panel toxins test • Batch test results available for every item sold Safe. Certified. Trusted. • FDA approved cGMP certified fa
Slide 8: Expanded Product Portfolio
EXPANDED PRODUCT PORTFOLIO 12 Liquid Products 4 Capsule Products 4 Topical Products 12 Canine Products – 11 New! 3 Gummies – NEW! Note: Product offering as of November 1, 2019 8
Slide 9: Strong Annual Financial Performance
STRO NG ANNUAL FINANCIAL PERFO RMANCE Revenue and Growth Gross Profit and Margin Adjusted EBITDA and Margin2 69.5 75% 75% 65% 35% 30% 52.3 14% 21.1 29.9 40.0 14.1 14.7 1 9.6 1 2.0 1 2016 2017 2018 2016 2017 2018 2016 2017 2018 All figures in USD $MM 9 (1) Charlotte’s Web, Inc. revenue (2) Adjusted E
Slide 10: Quarterly Performance
QUARTERLY PERFO RMANCE 30 Revenue Growth ($MM) 25 25.1 Q3 - 2019 Financial Highlights 25 21.7 21.5 20 ➢ $25.1M revenue: +42% vs Q3-2018 17.2 17.7 ➢ 71% gross margin ➢ 2.8% adjusted EBITDA of $0.7 million 15 13.1 12.5 ➢ 51% revenue from e-commerce 11.3 ➢ B2B retail sales increased 66.4% YoY 10 9.1 7.
Slide 11: Building a Global CPG Company to Accelerate Growth
BUILDING A GLOBAL CPG COMPANY TO ACCELERATE GROWTH BUILD OUT OF CPG LEADERSHIP TEAM and top tier sales organization DEVELOP OPERATIONAL EXCELLENCE and corporate governance SCALE PRODUCTION AND DISTRIBUTION PLATFORMS STRUCTURE DATA FOR INTELLIGENCE LAUNCH AGILE MARKETING EXPAND ACROSS CHANNELS 11
Slide 12: Building the CPG Leadership Team
Deanie Elsner Russ Hammer Jared Stanley Tony True Chief Executive Officer Chief Financial Officer Chief Cultivation Officer Chief Customer Officer BUILDING • • Kellogg’s P&G • • ORBITZ CROCS • • PHARMAVITE WhiteWave THE CPG • • Kraft Johnson & Johnson • • Brown Shoe Company MOTOROLA • • Kellogg’s Pe
Slide 13: Operational Excellence: Expand Cultivation
OPERATIONAL EXCELLENCE: EXPAND CULTIVATION Cultivation Operations Hemp Production (Lbs) 2,340,000 • Over 6 years of experience in hemp plant cultivation • Corp operated farms in Colorado, contract farms in Kentucky, Oregon • Participating in regenerative organic hemp farming research initiative 2019
Slide 14: Operational Excellence: Expand Production & Distribution
OPERATIONAL EXCELLENCE EXPAND PRODUCTION & DISTRIBUTION In-House Production • New 137,000 sq ft cGMP grade manufacturing and R&D facility in addition to current 40,000 ft2 facility • Extraction, production, distribution and R&D expansion • CPG level shipping and distribution • Staged build-out - Onl
Slide 15: Expand Across Channels
EXPAND ACROSS CHANNELS CHARLOTTE’S WEB TOTAL RETAIL DOORS (EOY) 9000 9000+ 8000 7000 6000 5000 4000 3000 2000 • Mass retailers entering the category 1000 • Regulatory uncertainty causing tempered uptake 0 2016 2017 2018 2019 YTD • Most national retailers taking topicals only • Management expects tha
Slide 16: Structure Data for Intelligence
STRUCTURE DATA FOR INTELLIGENCE • Operational Efficiency • Sales Effectiveness • Personalized Marketing • Business Analytics • Rapid Test & Learn 16 16
Slide 17: Launching Agile Marketing
LAUNCH ING AG ILE M A R KET ING 17
Slide 18: Charlotte’s Web, Inc. - Confidential
Charlotte’s Web, Inc. - Confidential Information
Slide 19: Charlotte’s Web, Inc. - Confidential
Charlotte’s Web, Inc. - Confidential Information
Slide 20: Charlotte's Web Holdings, Inc.
TSX:CWEB | OTCQX:CWBHF Charlotte’s Web Holdings, Inc. 1600 Pearl Street Boulder, Colorado USA www.charlottesweb.com Cory Pala Director of Investor Relations (720) 484-8930 20 IR@CharlottesWeb.com
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