Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Q2 2021 Earnings Presentation
21 slides from Charlotte's Web's earnings presentation, May 11, 2021
Slide 1: Brands – Science – Leadership
BRANDS – SCIENCE - LEADERSHIP Charlotte’s Web, Inc. - Confidential Information TSX: CWEB | OTCQX: CWBHF Q2 2021
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: Evolution to Market Leader
1 E VO LU T I O N TO M A R K E T L EA D E R PROPRIETARY HEMP # B R A N D i n T O TA L H E M P - • Stanley Brothers (“SB”) GLOBAL MEDIA RECEPTION • CWEB becomes an INITIAL PUBLIC OFFERING • CWEB closes IPO and lists DERIVED CBD MARKET1 develop proprietary internationally recognized on the Canadian St
Slide 4: Management Team
MANAGEMENT TEAM Deanie Elsner Russ Hammer David Panter Jared Stanley Tony True Perry Antelman CEO CFO COO CHIEF CULTIVATION CHIEF CUSTOMER PRESIDENT, TOPICALS • Kellogg’s • Caleres Brands • Estée Lauder OFFICER OFFICER • Abacus Health CEO • P&G • ORBITZ INC • Luxottica Retail • PHARMAVITE • Acquired
Slide 5: B Corp Certified August 2020
B CORP™ CERTIFIED AUGUST 2020 3522 CERTIFIED B CORPS 150 74 INDUSTRIES COUNTRIES
Slide 6: Charlotte's Web Assets
C H A R LOT T E ’ S W E B A S S E T S Brand Strength Vertically Integrated Supply Chain #1 Category #1 #1 Dollar Share Brand Consumer F/D/M & Awareness Loyalty Natural Retail Ecommerce Platform Science and Safety 6
Slide 7: Product Innovation
PRODUCT INNOVATION Original Portfolio 3 Gummies Added 12 Canine Products Added THC-Free NEW! Note: Product offering as of Q2, 2020 7
Slide 8: Evolving the Lead – Fill the Portfolio Gap
E VO LV I N G T H E L EA D – F I L L T H E P O RT FO L I O G A P Consumer Offering Health Care Practitioner Offering ADVANCED RELIEF Powered by Nature™
Slide 9: Increased Ecommerce Capability
I N C R EA S E D ECO M M E RC E C A PA B I L I T Y EXPANDING CAPABILITIES • Superior Analytics • Breakthrough Insights • Advantaged Segmentation • Personalized Communication • Rapid Test & Learn IMPROVING KPI’s • Traffic • Conversion • Average Order Value 750,000 Active List • Retention 9
Slide 10: Quarterly Performance – Q1 2021
Q UA RT E R LY P E R FO R M A N C E – Q 1 2 0 2 1 Quarterly Revenue Growth ($MM) 30 Q1 - 2021 Financial Highlights 26.9 25 25.2 ➢ Consolidated revenue up 9.1% YoY to $23.4 25 23.4 25.1 ➢ DTC sales up 14.5% YoY to $16.1M or 68.9% Q1 revenue 21.7 21.5 21.7 22.8 21.5 ➢ B2B retail growth returning, up 1
Slide 11: Scaling the Portfolio
S C A L I N G T H E P O RT FO L I O PORTFOLIO FOOTPRINT CREDIBILITY TECHNICAL ECOSYSTEM Segments Ingestibles Topicals Data Content Bath & Beauty 16K Health Care Practitioners Pet Channels Food/Drug/Mass Retail Ecommerce Experiences Natural Specialty Retail eCommerce Health Care Practitioners Educati
Slide 12: Scaling the Portfolio: Market Share by Channel
S C A L I N G T H E P O RT FO L I O Market Share Position - By Channel Channel Distribution COMBINED SHARE* INDEX VS NEXT COMPETITOR CHANNEL DISTRIBUTION FOOD #1 137 BRAND FOOD DRUG NATURAL eCOMM CHARLOTTE’S WEB DRUG #1 316 TOTAL FDM #1 207 CBD MEDIC NATURAL #1 79 HARMONY HEMP eCOMMERCE #1 N/A 12 *N
Slide 13: Driving the Brand Advantage
D R I V I N G T H E B R A N D A DVA N TAG E Charlotte’s Web Vs. Leading Competitor #1 in Unaided Awareness 188% times higher than #2* #1 in Aided Awareness 15% higher than #2 #1 in Would Consider Buying 41% higher than #2 #1 CBD Brand Purchased 49% higher than #2 #1 in Loyalty 82% higher than #2 #
Slide 14: Carli Lloyd – Authentic Celebrity Endorsement
C A R L I L LOY D – AU T H E N T I C C E L E B R I T Y E N D O RS E M E N T WHO IS CARLI LLOYD? 2x Olympic Gold Medalist, World Champion and FIFA Player of the Year ● US Women’s Soccer Team Captain ● Newest CBDMEDIC by Charlotte’s Web spokesperson ● Following a knee injury, Carli started using CBDME
Slide 15: Leading with Science
L EA D I N G W I T H S C I E N C E Launched CW Labs - March 2020 • Co-located in the Hauptman Woodward Medical Research Institute in Buffalo, NY and Charlotte’s Web labs in Boulder, CO • Taps into the SUNY System – 64 Connected Campuses across New York • Product development through scientific and cl
Slide 16: Regulatory Expertise & Certifications
REGULATORY EXPERTISE & CERTIFICATIONS Certifications 1. Responsible and pro-active approach with FDA and other regulators • Lawful advertising in line with FDA guidelines • Actively engaged in research studies to support FDA’s interest in science-based data 2. All products tested up to 20 times • Te
Slide 17: Expand & Automate
E X PA N D & AU TO M AT E In-House Production • New 137,000 sq ft cGMP grade manufacturing and R&D facility • Extraction, production, distribution and R&D expansion • CPG & Ecommerce shipping and distribution • Staged build-out; shipping-production-extraction-R&D • Capable of servicing the full F/D/
Slide 18: International Expansion
INTERNATIONAL EXPANSION As s et - lig ht mode l t hroug h par t nerships ISRAEL • 5-year exclusive distribution partnership with Intercare/Canndoc in Israel • InterCure/Canndoc has 100% distribution within every IMCA (Israeli Medical Cannabis Agency) approved pharmacy in Israel • Initial hemp CBD pr
Slide 19: Charlotte's Web – Best Positioned to Win Long Term
C H A R LOT T E ’ S W E B - B EST P O S I T I O N E D TO W I N LO N G T E R M • EXPERIENCED CPG LEADERSHIP TEAM • MARKET SHARE LEADER • E V O LV I N G T H E P O R T F O L I O, I N F R A S T R U C T U R E A N D C A PA B I L I T I E S • B A C K E D BY S C I E N C E A N D D ATA • F U L LY C A P I TA L
Slide 20: Balance Sheet & Capitalization
BALANCE SHEET & CAPITALIZATION BALANCE SHEET MARCH 31, 2021 CAPITALIZATION May 10, 2021 All figures shown in millions, US$ Cash $35.0 Basic Common Shares Outstanding 109,378,169 Proportional Voting Shares (400:1) 76,264.43 Working Capital $95.6 (400:1 = 30,505,769) Total Assets $295.6 Effective Basi
Slide 21: 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 21 IR@CharlottesWeb.com
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