Canopy Growth Corporation · TSX:WEED

Canopy Growth — FY2021 Earnings Presentation

26 slides from Canopy Growth's earnings presentation, Jun 1, 2021

1. Slide 1: Q4 & FY 2021 Earnings Presentation

   CANOPY GROWTH Q4 & FY 2021 EARNINGS PRESENTATION June 1, 2021

2. Slide 2: Disclaimers and Cautionary Statements

   DISCLAIMERS AND CAUTIONARY STATEMENTS This presentation contains “forward-looking statements” and “forward-looking information” within the meaning of applicable U.S. and Canadian securities laws (collectively, “forward-looking statements”), which involve certain known and unknown risks and uncertain

3. Slide 3: Non-GAAP Measures

   NON-GAAP MEASURES Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Adjusted EBITDA is calculated as the reported net loss, adjusted to exclude income tax recovery (expense); other inc

4. Slide 4: Today's Speakers

   TODAY’S SPEAKERS DAVID KLEIN MIKE LEE CEO EVP & CFO 4

5. Slide 5: Agenda

   AGENDA ! Key Takeaways ! Progress Against Our Key Strategic Priorities ! Q4 & FY 2021 Financial Results Review ! Q&A 5 !""#$%&'&(%'"#%&$)*+',%)&#%&#,-%.#/*0.0&,',%)&#%.#*0/)*,01#%&#2'&'1%'&#1)""'*.3#4&"0..#),-0*5%.0#%&1%(',016

6. Slide 6: Key Takeaways

   KEY TAKEAWAYS SIGNIFICANT PROGRESS MADE DURING FY 2021 ! Delivered 37% growth in net revenue in FY 2021 versus FY 2020, with double-digit growth across all of our businesses ! Re-designed the organization structure, driving improvement in agility and execution ! Right-sized the production footprint,

7. Slide 7: Completed acquisition of Ace Valley

   Completed acquisition of Ace Valley ! Completed acquisition of Ace Valley, one of Ontario’s leading cannabis brands with a strong focus on ready ready-to-enjoy (RTE) products ! Range of SKUs complements Canopy Growth’s existing portfolio of premium pre-roll joints, and gummies vapes, pre ! Canopy Gr

8. Slide 8: Announced Acquisition of Supreme Cannabis

   ANNOUNCED ACQUISITION OF SUPREME CANNABIS ! Canopy Growth to acquire all of the issued and outstanding shares of Supreme Cannabis by way of a court approved Plan of Arrangement ! Solidifies Canopy’s leadership position in the Canadian rec market by adding a Top 10 LP with ~3% market share1 ! Strengt

9. Slide 9: Flower: Solid Market Share Momentum

   FLOWER: SOLID MARKET SHARE MOMENTUM Key Highlights: ! #1 Market share in total flower1 at 19% in Q4 2021, up 60bps versus Q3 2021 ! #1 Market share in both Premium and Value flower segments1 ! Twd. exited FY 2021 as the #1 flower brand in Canada, with 6 out of 10 top SKUs1 ! Launched Tweed lineage-s

10. Slide 10: Vapes: Strengthened Portfolio

    VAPES: STRENGTHENED PORTFOLIO Key Highlights: ! #3 Market share in total vape1, post-Ace Valley acquisition ! 1ml 510 cartridges began shipping to select provinces in Q1 2022 ! Storz & Bickel posted historic 67% YoY growth in its 20th year of business ! Storz & Bickel vaporizer products continue to

11. Slide 11: Beverages: Accelerating Innovation

    BEVERAGES: ACCELERATING INNOVATION Key Highlights: ! Captured 35% dollar share of the total beverage category during FY 20211 ! Quatreau has the #1 market share2 in CBD beverages in Canada ! Launched Quatreau CBD beverages in the US in Q4 2021 and became the first US CBD beverage brand to sign with

12. Slide 12: Edibles: Accelerating Growth in Both US and Canada

    EDIBLES: ACCELERATING GROWTH IN BOTH US AND CANADA Key Highlights: 12 ! Twd. Strawberry Sativa Gummies have 4% market share1 of gummies after 2 months in market, with just 1 SKU ! Further flavors to launch under the Twd. brand in 2H of CY2021 ! Launched Martha Stewart CBD Mother's Day Wellness Gummi

13. Slide 13: BioSteel: Building Distribution in the US

    BIOSTEEL: BUILDING DISTRIBUTION IN THE US Key Highlights: ! BioSteel RTD beverages are already a top-7 sports drink brand with only 3.6% ACV 1 ! Biosteel RTD beverages now on shelves of key retailers, including; QuikTrip, Target, AMPM, and Circle K, with regional chains coming on each day ! Luka Don

14. Slide 14: Q4 & FY 2021 Financial Results

    Q4 & FY 2021 FINANCIAL RESULTS

15. Slide 15: Tracking Our KPI

    Tracking Our KPI !""#$%&'()'*+,""-$%& ./)&"# 011)(/,2$%&'./)&"# 3"4(5'./)&"# !"#$%$" !$#$%$" !&#$%$" !'#$%$" !"#$!"%&$'(#)*+,- ! #1 Market share in Canadian ("#)*#($#+,*-./#01,*.#23#4,3,5, rec flower6 ("#)*#($#+,*-./#01,*.#23#60 ! #2 Market share of the ("#)*#($#+,*-./#01,*.#23#7.*8,39 German flower

16. Slide 16: Q4 & FY2021 Key Financial Highlights

    Q4 & FY2021 KEY FINANCIAL HIGHLIGHTS vs. vs. (CDN in millions) Q4 2021 Q4 2020 FY2021 FY2020 • Q4 2021 net revenue Net Revenue $148.4 38% $546.6 37% increased by 38% YoY; cannabis net revenue increased 27% Adjusted Gross Margin 14% (2800 bps) 17% (900 bps) • Free cash flow improved by 59% in Q4 2021

17. Slide 17: Revenue Performance by Segment

    REVENUE PERFORMANCE BY SEGMENT vs. vs. (in millions of Canadian dollars, unaudited) Q4 2021 Q4 2020 FY2021 FY2020 Canadian Recreational Cannabis Net Revenue Business to Business1 $43.3 40% $163.6 35% Business to Consumer $17.8 37% $66.0 27% $61.1 39% $229.6 32% Canadian Medical Cannabis Net Revenue2

18. Slide 18: Revenue Performance by Form

    REVENUE PERFORMANCE BY FORM vs. vs. (in millions of Canadian dollars, unaudited) Q4 2021 Q4 2020 FY2021 FY2020 Canadian Recreational Cannabis Dry Bud1 $67.9 39% $238.0 - Oils and Softgels1 $6.7 29% $28.8 33% Beverages, Edibles, Topicals, and Vapes $7.1 NM $31.7 NM Other Revenue Adjustments2 ($3.1) 4

19. Slide 19: Gross Margin Performance

    Gross Margin performance !"#$%&$'()*$+,,)-#$./0)1$&02) 3$/4&$,)+5)!6)7879)*$+,,)-#$./0):&$5+$;#0<&) )*$ !"#$%&'()$*)&+,-./&0$&,.*,. *%$ !"#$10234&)356($*)&+,-.$7/8$/0$.9($:303+/30$ &'$ &'$ %$ ($ &%$ ($ &)$ )(-)(3./&036$73);(.$ .7$8989 .:$898: .8$898: .;$898: .7$898: !"#$<04(0.&)=$-93)>(?$+,($/0$*3).

20. Slide 20: Opex Trend

    Opex Trend !"#$%&$'()=>?@ 1$&02)ABC)/0)D888,E =>?@ #,)#):&$<&0%#.&)+5)F&%)G#'&,)A!6)7878))4,H)!6)7879E 300,000 Total OpEx Total OpEx Ex-SBC 80% Q4 2020 Q4 2021 70% 250,000 60% 200,000 50% 150,000 40% 30% 100,000 20% 50,000 10% 0 0% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 SALES AND R&D G&A SHARE-BASE

21. Slide 21: Adjusted EBITDA and Free Cash Flow

    ADJUSTED EBITDA AND FREE CASH FLOW I2J",%&2)?KL13I)1$&02)ABC)/0)D888,E) M$&&)B#,N)M'+O)1$&02)ABC)/0)D888,E Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $0 $0 -$20,000 -$50,000 -$100,000 -$40,000 -$150,000 -$60,000 -$200,000 -$80,000 -$250,000 -$300,000 -$100,000 -$

22. Slide 22: Appendix

    Appendix

23. Slide 23: Adjusted Gross Margin (Non-GAAP) Reconciliation

    ADJUSTED GROSS MARGIN (NON-GAAP) RECONCILIATION !"#$%&'"()*+%%(,-*./0!(1'2+02/3/-&/+0(45+06)!!7(,'-%$*'8! !! !! "#$%%!&'()#*!%(+%+!,-$.#!/01! !"#$%&'()*#+)$',$-*#*+"*#$+'..*/)0$(#*(+"%1+2$ !! 2320! (( 2323! 4%)!$%5%(6%! !! 708918/:! !! 703;1:0/! !! !! !! !! !! <$'**!&-$=>(1!-*!$%?'$)%+! !! :1933! !!

24. Slide 24: Adjusted EBITDA (Non-GAAP) Reconciliation

    ADJUSTED EBITDA (NON-GAAP) RECONCILIATION !"#$%&'"()*+,-!!(.'/01/2324&201(560178!!9(:'4%$;'<! !! !! !! !! !! !! "#$%%!&'()#*!%(+%+!,-$.#!/01! !"#$%&'()*#+)$',$-*#*+"*#$+'..*/)0$(#*(+"%1+2$ !! 2320! !! 2323! 4%)!5'**! !! 67808189:;!!! 6701/281<3:;! =(.'&%!)->!%>?%(*%!7$%.'@%$A;! !! <19<:!!! 79B1888;!

25. Slide 25: Free Cash Flow (Non-GAAP) Reconciliation

    FREE CASH FLOW (NON-GAAP) RECONCILIATION !"##$%&'($!)*+!$,#-*.-/)/&0/*.$12*.34556$7#&'8"#9! !! !! !! !! !! !! "#$%%!&'()#*!%(+%+!,-$.#!/01! !"#$%&'()*#+)$',$-*#*+"*#$+'..*/)0$(#*(+"%1+2$ !! 2320! !! 2323! 4%)!.-*#!5*%+!6(!'7%$-)6(8!-.)696)6%*! !! :;<=1>/3?!!! :;2031@/<?! A5$.#-*%*!'B!-(+!+%7'*6)*!'(

26. Slide 26: Thank You

    Thank You

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