Slide 1: Corporate Presentation
Corporate Presentation May 2023 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
367 ~2700 $810MM Overview Retail Stores Employees1 Latest Quarter (Liquor + Cannabis Annualized Net Retail)1 Revenue2 >930K ft2 $579.9MM Indoor Cultivation Strategic Cannabis and Manufacturing Investments2 3 1As at May 12, 2023 (Cannabis 2As at March 31, 2023 Operations)1
Slide 4: Overview
$589MM Enterprise Value1 3 Overview $616MM Market Capitalization 1 3 Largest private sector distributor of liquor and cannabis in Canada with 367 retail locations $218MM Cash & Marketable Securities1 Focused on building a leading regulated products platform capable of generating sustained profitabil
Slide 5: Operating Segments
Operating Segments Overview Liquor Retail Cannabis Retail Cannabis Investments • Canada’s largest priv ate • Canada’s largest • Robust innov ation • Emphasis on sector liquor retailer cannabis retail footprint capabilities through low - cannabis credit and cost biomass sourcing, select M&A focused •
Slide 6: The SNDL Advantage
The SNDL Advantage Overview Strong Vertically Retail Strategic Balance Integrated Scale & Cannabis Sheet Cannabis Experience Investments SNDL has one of the Vertical integration SNDL’s profitable SNDL’s investment strongest balance generates economic liquor retail segment portfolio generates sheets
Slide 7: Balance Sheet
Balance Sheet Overview COMPARABLE VALUATION ANALYSIS Net Cash / (Debt) + Share Share Mkt Total 30D Avg. Daily Total Cash / COMPARABLE VALUATION ANALYSIS Investments LQA Cash Flow Price Price Cap Debt Cash EV2 per FD S/O Value Traded 3 Use In Ops US$ / sh C$ / sh C$mm C$mm C$mm C$mm C$ / sh C$mm Year
Slide 8: Income Statement
Income Statement Overview COMPARABLE VALUATION ANALYSIS Revenue EBITDA EV / Revenue EV / EBITDA CY23E CY24E CY25E CY23E CY24E CY25E CY23E CY24E CY25E CY23E CY24E CY25E C$mm C$mm C$mm C$mm C$mm C$mm Tilray Brands, Inc. $845 $897 $1,103 $94 $111 $200 2.8x 2.7x 2.2x 25.4x 21.4x 11.9x Cronos Group Inc.
Slide 9: SNDL Valuation
SNDL Valuation Overview NET ASSET VALUE WATERFALL $5.01 (US$3.70) Denoted in C$/sh C$3.02/sh (US$2.23/sh) SIGNIFICANT UPSIDE POTENTIAL $2.00 ($0.73) $2.29 (US$1.69) Implied Residual Value for: $0.16 170 Liquor Stores $0.85 31 Vend-In Stores 1 77 Franchise Stores 92 Nov a Stores (63% Ownership) 448,0
Slide 10: Liquor Retail
Liquor Retail
Slide 11: Liquor Retail
Liquor Retail 170 $37.58 Canada’s Largest Private Sector Liquor Retail locations in Alberta Average Basket Size3 Retailer and British Columbia 1 SNDL's Liquor Ret ail segment has substantial experience and scale operat ing in compet itive & regulated ret ail env ironments and generates consistent re
Slide 12: The SNDL Advantage
The SNDL Advantage Liquor Retail Operational Buying Diversified Scale & Power Drives Retail Efficiency Margin Footprint Operational scale Trade areas, store Broad range of liquor creates meaningful footprints and customers with a efficiencies for warehousing diversified retail corporate services inf
Slide 13: Liquor Retail Results
Liquor Retail Q1 2023 Gross Revenue Gross Margin Liquor Retail Results $115.9MM $26.3MM Latest Quarter Annualized Average Adjusted EBITDA¹ Revenue Per Store $8.4MM $2.7MM 13 NOTES 1. Ex cluding corporat e cost allocation.
Slide 14: Brand Portfolio
Brand Portfolio Liquor Retail Wine and Beyond is Western Canada’s Liquor Depot is a convenience retail liquor Ace Liquor Discounter has more largest liquor stores. We pride ourselves outlet with over 20 locations in Alberta. than 138 locations in Alberta where on having a selection of over 6,000 you
Slide 15: Cannabis Retail
Cannabis Retail sndl
Slide 16: Cannabis Retail
Cannabis Retail 197 Canada’s Largest Private $40.09 Sector Cannabis Retail Locations in AB, BC, MB, ON and SK1 Average Basket Size3 Retailer With our Value Buds, Spiritleaf, Superette and Firesale Cannabis banners combined, SNDL has the largest cannabis retail footprint in Canada and gains significa
Slide 17: The SNDL Advantage
The SNDL Advantage Cannabis Retail Regulatory Diversified Robust Data Disciplined Compliant Banner & Consumer Retail Structure Strategy Insights Operations Targeting distinct Leverage extensive Emphasis on effective A vertically integrated transactional data, to and cost -efficient consumer segments
Slide 18: Cannabis Retail Results
Cannabis Retail Q1 Gross Margin 2023 Gross Revenue Cannabis Retail Results $67.4MM $15.8MM Latest Quarter Annualized Adjusted EBITDA¹ Average Revenue Per Store2 $3.6MM $2.2MM 18 NOTES 1. Ex cludes Corporate Cost 2 Ex cludes franchise system-wide sales Comparis ons are from t he firs t quart er of 20
Slide 19: Cannabis Retail Brand Portfolio
Cannabis Retail Brand Portfolio Spiritleaf aims to be the most Superette is a retail brand that makes knowledgeable and trusted source of buying cannabis as enjoyable as recreational cannabis, offering a consuming it. Every thoughtful detail of premium consumer experience. We our brand, whether in-s
Slide 20: Cannabis Operations
Cannabis Operations ae sndl
Slide 21: Cannabis Operations
Cannabis Operations Cannabis 21LPs 640 Operations SNDL’s agile cultivation and production operations enable our brands and products to meet and Preferred B2B Partner to Licensed Product listings2 delight the rapidly evolving Producers in Canada 1 cannabis consumer’s preferences. 10 Provinces with SN
Slide 22: The SNDL Advantage
The SNDL Advantage Cannabis Operations Cultivating Innovation Consumer & Flexible Craft-at- Pipeline Customer Manufacturing Scale Centric Craft-at-scale Tailor production to Consistent , high- Leveraging low-cost market demand approach enables a quality cannabis at biomass, premium through scalable
Slide 23: Cannabis Operations Results
Cannabis Operations Q1 Gross Revenue Cost of Sales 2023 Cannabis $29.6MM $16.9MM Operations Results Adjusted EBITDA¹ Gross Margin ($3.1MM) ($9.5MM) 23 NOTES 1 Ex cludes Corporat e Cost Comparison are from t he first quart er of 2022
Slide 24: Cannabis Operations Brand Portfolio
PREMIUM CORE Cannabis Operations Brand Portfolio VALUE DISCOUNT 24
Slide 25: Investments
Investments {o} sndl
Slide 26: Investments Results
Q1 Investments 2023 Capital deployed in credit and equity investments Share of the profit of equity- accounted investees $579.9MM Investments Results $9.5MM¹ Investment Revenue Interest and Fee Revenue ($4.9)MM $4.2MM 26 NOTES 1. Share of profit of equity accounted investees includes non-cash fair m
Slide 27: Investments
Investments Strategically deployed capital for the $580MM 6 cannabis Fair value of all cannabis industry investments2 SunStream credit portfolio investments industry $536MM $44MM Fair value of SunStream Fair value of Canadian credit Portfolio2 and equity investments2 27 NOTES 1. All numbers are as o
Slide 28: SunStream Overview
Investments SunStream To earn attractive risk- To deploy capital into adjusted returns through cannabis investments Overview secured debt, including US opportunities hybrid securities, and to comply with NASDAQ Why was distressed debt / equity. requirements. SunStream launched? To leverage the finan
Slide 29: SunStream Overview – Investment Opportunity
I n USD Unless Ot her wise Not ed SunStream Overview – Investment Opportunity Investments The US cannabis market presents a compelling investment opportunity driven by (i) continued market growth, (ii) scarce capital availability, and (iii) depressed valuations Opportunity Drivers Largest Cannabis M
Slide 30: SunStream Portfolio Bifurcation
I n USD Unless Ot her wise Not ed Investments SunStream Portfolio Bifurcation SunStream’s investment portfolio can be bifurcated into (i) performing credits and (ii) equitization opportunities, and includes some of the largest multi-state and single state operators in the US Performing US Credit Por
Slide 31: Potential SunStream USA Compared to US MSOs
I n USD Unless Ot her wise Not ed Investments Potential SunStream USA Compared to US MSO’s SSB Equitization Opportunities LQA (1) Revenue vs US MSO’s ($’mm) ( 2) $1,600 + $1,400 $1,346 Potential Equitized $1,200 $1,156 Portfolio (2) $1,072(3) $994 Revenue (#039;mm) $1,000 $908 $901 $800 Potential Equit
Slide 32: Analyst Coverage
Analyst Coverage Frederico Gomes ATB Financial Shaan Mir Canaccord Genuity Sophie Pilon I nvestor Relations and Communications investors@sndl.com