Canopy Growth Corporation · TSX:WEED
Canopy Growth — Q1 2021 Earnings Presentation
21 slides from Canopy Growth's earnings presentation, August 2020
Slide 1: Q1 2021 Earnings Presentation
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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
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES Adjusted EBITDA is a non-U.S. 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), othe
Slide 4: Today's Speakers
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Slide 5: Agenda
AGENDA v Q1 2021 Key Takeaways v Progress Against Our Key Strategic Priorities v Q1 2021 Financial Results v Q&A 5
Slide 6: Q1 2021 Key Takeaways
Q1 2021 KEY TAKEAWAYS Advancing against our key strategic priorities • Our consumer-centric approach is bringing to life a portfolio of differentiated products • We are strengthening our performance in Canada and accelerating growth in the US • We are improving our execution and increasing agility Q
Slide 7: Progressing on Our Strategic Priorities
PROGRESSING ON OUR STRATEGIC PRIORITIES CONSUMER-CENTRIC WIN IN OUR CORE MARKETS DRIVE QUALITY EXECUTION • Value-flower share improving post • Improving execution and nimbleness • New organizational design and nationwide price reset of Twd. in Canada operating model driving quicker decision-making •
Slide 8: Building Positive Momentum
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Slide 9: Tracking Our KPI
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Slide 10: Q1 2021 Financial Results
Q1 2021 FINANCIAL RESULTS se CANOPY GROWTH: Five @ TOKYO SMOKE 1 Spectrum is Os Ol Therapeutics”
Slide 11: Q1 2021 Key Financial Highlights
Q1 2021 KEY FINANCIAL HIGHLIGHTS Key Takeaways (CDN in millions) Q1 21 Q1 20 vs. Q1 20 v Net revenue increased by 22%, driven by higher medical sales, strong Storz & Bickel Net Revenue $110 $90 22% vaporizer sales, and acquisition benefits versus Q1 2020 v Adjusted gross margin of 7% was Adjusted Gr
Slide 12: Revenue Performance by Segment
REVENUE PERFORMANCE BY SEGMENT v Global medical businesses grew a combined 54% year over year v All Others sales grew 71%, driven in part by S&B sales growth of Q1 2021 NET REVENUE MIX 76% versus Q1 2020 led by expanded distribution in the US market All Others Canada 29% Rec B2B 32% (CDN in millions
Slide 13: Revenue Performance by Format
REVENUE PERFORMANCE BY FORMAT Canadian Recreational Sales by Format - Q1 2021 Cannabis 2.0 v Cannabis 2.0 products accounted for 13% of Canadian Recreational sales Oils & 13% v Flower and pre-roll sales declined in Q1 2021 versus Q1 2020 Softgels 14% v In Medical, oil & softgels accounted for 70% of
Slide 14: Gross Margin Performance
GROSS MARGIN PERFORMANCE Quarterly Gross Margin Trend Drivers of Q1 2021 Gross Margin Performance (-) ~$18mm impact related to under-absorption of fixed 42% overhead costs 31% 31% 20% 20% 5% 5% 6% 7% (-) ~$11mm related to manufacturing variances including out-of-spec production that did not meet new
Slide 15: OpEx Trend
OPEX TREND Quarterly OpEx Trend (C$ in `000s) OpEx as a Percentage of Net Sales (Q1 2021 vs. Q1 2020) Total OpEx Total OpEx Ex-SBC 300,000 120% Q1 20 Q1 21 250,000 100% 200,000 80% 150,000 60% 100,000 40% 50,000 20% 0 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 SALES AND R&D G&A SHARE-BASED D&A MARKETING COMP
Slide 16: Adjusted EBITDA and Free Cash Flow
ADJUSTED EBITDA AND FREE CASH FLOW Adjusted EBITDA Trend (C$ in `000s) Free Cash Flow Trend (C$ in `000s) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 $0 $0 -$20,000 -$50,000 -$40,000 -$100,000 -$150,000 -$60,000 -$200,000 -$80,000 -$250,000 -$100,000 -$300,000 -$350,000 -$120,000 -$4
Slide 17: Appendix
APPENDIX _ Ait CANOPY GROWTH ioc cs a Samos 7
Slide 18: Adjusted Gross Margin Reconciliation (Non-GAAP)
Adjusted Gross Margin Reconciliation (Non-GAAP) 1 Adjusted Gross Margin Reconciliation (Non-GAAP Measure) Three months ended June 30, (in thousands of Canadian dollars, unaudited) 2020 2019 Net revenue $ 110,416 $ 90,482 Gross margin, as reported 6,495 18,290 Adjustments to gross margin: Charges rel
Slide 19: Adjusted EBITDA Reconciliation (Non-GAAP)
Adjusted EBITDA Reconciliation (Non-GAAP) 1 Adjusted EBITDA Reconciliation (Non-GAAP Measure) Three months ended June 30, (in thousands of Canadian dollars, unaudited) 2020 2019 Net loss $ (128,322) $ (194,051) Income tax (recovery) expense (3,038) 10,267 Other (income) expense, net (48,205) (32,768
Slide 20: Free Cash Flow (Non-GAAP) Reconciliation
Free Cash Flow (Non-GAAP) Reconciliation 1 Free Cash Flow Reconciliation Three months ended June 30, (in thousands of Canadian dollars, unaudited) 2020 2019 Net cash used in operating activities $ (118,546) $ (158,290) Purchases of and deposits on property, plant and equipment (61,547) (211,824) Fre
Slide 21: Thank You
THANK YOU _ hi CANOPY GROWTH ioc cs a Samos ay Spee, @ TOKYO SMOKE “1 Spectrum Therapeutics” 21