Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Investor Presentation (March 2023)
18 slides from Ascend Wellness Holdings Llc Class A's investor presentation, March 2023
Slide 1: Ascend Wellness Holdings Company Presentation
Ascend Wellness Holdings Company Presentation March 2023 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation includes forward-looking information and statements (together, “forward-looking statements”), which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of Ascend Wellness Holdings
Slide 3: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania. Owns and operates state-of-the-art cultivation facilities; grows award-winning strains and produces a curated selection of products. Tickers CSE: AAWH.U; OTCQX: AAWH EV1 $438
Slide 4: Leapfrogged Competition in 4 Years
Franklin, NJ Cultivation LEAPFROGGED COMPETITION IN 4 YEARS Executed to become a top tier operator in only 4 years #1 #1 Fort Lee, NJ Dispensary HIGHEST AVG REVENUE HIGHEST ANNUAL 141% CAGR PER DISPENSARY 3 ADJ. EBITDA GROWTH 2 (17% Y/Y) #6 #3 LARGEST BY WHOLESALE BRAND Rochelle Park, NJ Dispensary
Slide 5: 7 States, 31 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 7 States MICHIGAN OHIO 31 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 9 retail2 3 retail 8 retail 1 retail pending close2 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA MASSACHUSETTS PENNSYLV
Slide 6: 4 of Top 10 Rec Markets and 3 of Top 5 Medical Markets
4 OF TOP 10 REC MARKETS AND 3 OF TOP 5 MEDICAL MARKETS Total Number 2020E Legal plus Population of Dispensaries Population Per Illicit Sales State (2021 in Millions)(1) (2021)(2,3) Dispensary State Rank(4) ($U.S. Billions)(4) RECREATIONAL Illinois 12.7 125 102,000 4 $3.2 Michigan 10.1 633 16,000 5 $
Slide 7: Flagship Locations
FLAGSHIP LOCATIONS • Top locations in each state • From strategically located in the retail corridor near St. Louis to minutes from the George Washington Bridge, NJ Turnpike, and NJ Rt. 46 Prioritize high-traffic locations Significant parking Optimized retail footprint 7
Slide 8: Good-Better-Best Brand Strategy
GOOD-BETTER-BEST BRAND STRATEGY 3 in-house brands fill the good-better-best spectrum; coupled with partner brands to target additional demographics AVAILABLE IL, MA, MI, NJ AVAILABLE IL, MA, MI, NJ, OH AVAILABLE IL, MA, NJ FORM FACTORS Flower, pre-rolls FORM FACTORS Edibles, vapes, flower, glass FOR
Slide 9: 2022 Full Year Financial Highlights
2022 FULL YEAR FINANCIAL HIGHLIGHTS Net Revenue1 • Retail: Total retail increased by 32% Y/Y to $305.9M driven by opening of US$ Millions $406 4 dispensaries (East Lansing, MI; Fort Lee, NJ; Scranton, PA; and Wayne, $332 PA), conversion of 3 NJ dispensaries to adult-use, and full year benefit + 22%
Slide 10: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Y/Y: Q1’22 VS. Q1’23 Net Revenue1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions US$ Millions 41.7% US$ Millions 42.9% 20.4% 19.2% +30% $47.6 +42% +34% $114.2 $85.1 $36.5 $23.3 Margin: $16.4 Margin: -123 bps +118 bps Q1 '22 Q1 '23 Q1 '22 Q1 '23 Q1 '22 Q1 '23 Q
Slide 11: Q1 2023 Balance Sheet and Cash Flow
Q1 2023 BALANCE SHEET AND CASH FLOW 3/31/23 ($ in millions) ($ in millions) Cash & Equivalents 73.3 Fully Diluted Shares Outstanding 196.9 Basic & D i l u t e d (1) To t a l D e b t , n e t (2) $324.0 12/31/22 Cash inflow / Cash inflow / Cash inflow / 3/31/23 (use) from (use) from (use) from Operati
Slide 12: Growth Ahead Despite Challenging Markets
GROWTH AHEAD DESPITE CHALLENGING MARKETS Remain focused on growing and deleveraging the business • Generated Positive Cash from Operations in Q1 2023 CASH • Remain laser focused on generating Cash from Operations for FY 2023 FOCUSED • Strong liquidity position • Opportunities to grow selectively via
Slide 13: Appendix
APPENDIX 13
Slide 14: Use of Non-GAAP Financial Metrics and Additional Information
USE OF NON-GAAP FINANCIAL METRICS AND ADDITIONAL INFORMATION This presentation includes certain non-GAAP financial measures as defined by the SEC including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. Reconciliations of these non-GAAP financial measures
Slide 15: Ascend Investment Thesis
ASCEND INVESTMENT THESIS FOCUS: ACHIEVE SCALE IN SELECT LIMITED LICENSE MARKETS KEY FLAGSHIP LOCATIONS IN MARKETS WITH HIGH BARRIERS TO ENTRY DISCIPLINED CAPITAL ALLOCATION; SUCCESSFUL EXECUTION OF M&A MANAGEMENT WITH PROVEN TRACK RECORD OF EXECUTION CONTINUED MARGIN IMPROVEMENT AS MORE ASSETS ARE “
Slide 16: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” New Bedford, MA Tinley Park, IL Cincinnati, OH Philadelphia, PA Smithfield, PA Pittsburgh, PA Dispensary Dispensary Dispensary* Dispensary Cultivation Phase 1 Dispensary Grand Rapids*, MI Sandusky, OH 5th PA Franklin, NJ Dispensary* Disp
Slide 17: GAAP Reconciliations
GAAP RECONCILIATIONS ( $ 0 0 0 S ) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Adjusted Gross Profit Gross Profit $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 $ 35,704 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% Depreciation and amortization included in cost of goods sold 2,943 3,953 4,722
Slide 18: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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