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Slide 2: MD&A basis of presentation
This Management's Discussion and Analysis (*MD&A’) is dated April 5, 2022 and provides an analysis of the financial operating results for the year ended December 31, 2021. In this MD&A, references to the “Company,” “Intercure,” and “we,” “us,” and “our” are intended to refer to the business and oper
Slide 3: Forward-Looking Statements
Forward-Looking Statements SS — SS = This MD@A may contain forward-looking information within the meaning of applicable securities legislation, which reflects Intercure’s current expectations regarding future events, including statements regarding = developments in the Company's operations in future
Slide 4: Non-IFRS Measures
Non-IFRS Measures In this MD&A, we use certain non-IFRS financial measures to measure, compare and explain the operating results and financial performance of Intercure. These measures are commonly used by companies operating in the cannabis industry as useful metrics for measuring performance. Howev
Slide 5: Fourth Quarter 2021 Key Highlights
+ Record revenue of $33 million (NIS 80 million), which is higher than the preliminary results, and three times greater than the fourth quarter of 2020 and representing sequential growth of 29%. + Record adjusted EBITDA of $9 million (NIS 21 million), representing a 140% increase year-over-year, seq
Slide 6: Full Year 2021 Key Financial & Operating Highlights
AL LM MMMM 2 Full Year 2021 Key Financial & Operating Highlights ] + Record fiscal year 2021 revenue and Adjusted EBITDA of $89 million (NIS 220 million) and $23 million (NIS 55 million), representing an increase of 230% and 250% year-over-year, respectively. + Adjusted EBITDA margin of 25% for the
Slide 7: Post-fourth quarter 2021 Highlights
\ Post-fourth quarter 2021 Highlights + Announced it has signed a definitive agreement to acquire 100% of Better's shares. + Announced international strategic partnership with Clever Leaves. +» Company expected to capitalize on new CBD market following the Israeli Minister of Health's announcement t
Slide 8: CEO quote on fourth quarter results
“Our fourth quarter results came in stronger than we initially expected as we successfully continue to expand InterCure's branded product portfolio, scale up our unique global supply chain and expand our pharmaceutical grade medical cannabis dispensing operation. Our results throughout 2021 reflect
Slide 9: Cannabis Sector Annualized Quarterly Revenue Run Rate
[ Cannabis Sector | | Annualized Quarterly Revenue Run Rate (millions) | Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 1319
Slide 10: Cannabis Sector Annualized Adjusted EBITDA
“Cannabis sector [ Annualized Adjusted EBITDA (millions)* Q3-20 04-20 i) O22) Q3-21 Q4-21
Slide 11: Quarterly revenues and gross profit
[ Quarterly revenues (millions) Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 ( Gross profit (millions)
Slide 12: Annual Revenue
Annual Revenue (millions) W319 220 65, 2020 2021 Q4/2021 Run Rate
Slide 13: Adjusted EBITDA
[ Adjusted EBITDA (milions)* . 2000 21 :
Slide 14: Cash flow from operation
[ Cash flow from operation (millions)
Slide 15: Cash
[ Cash (milions) $89
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Slide 17: Expanding our leading medical cannabis dispensing pharmacies chain
Expanding our leading medical cannabis dispensing pharmacies chain Tr ™ <a 1 1 1 1 Q3-21 Q4-21 ‘3-20 14-20 Qr21 wee) ”
Slide 18: Expanding our leading medical cannabis dispensing pharmacies chain
Expanding our leading medical cannabis dispensing | pharmacies chain
Slide 19: The Southern Facility
[ The Southern Facility ]
Slide 20: Cultivated at the Southern Facility
( Cultivated at the Souther Facility )
Slide 21: Cultivated at the Southern Facility
( Cultivated at the Souther Facility )
Slide 22: Cultivated at the Southern Facility
( Cultivated at the Souther Facility ) CNOT/4
Slide 23: Cultivated at the Southern Facility
( Cultivated at the Souther Facility )
Slide 24: Overview and subsidiaries
In addition, during July 2021, we purchased 100% of one of a leading operating trading house in Israel (addition to Pharma-zone), which is authorized to distribute GMP medical cannabis products to pharmacies. The purchase of the trading house will support our vertically integrated model and be an ad
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Slide 28: EBITDA and Adjusted EBITDA reconciliation tables
Gross profit before effect of fair value 36,612 13,302 Research and development expenses 220 342 Marketing and selling expenses 8,546 3064 Share-based payment expenses 1,170 1,675 Consolidated operating profit (loss) 9,052 7,683 Tax expenses (income) 5,595 2,545 EBITDA 12,260 11,134 Other expenses (