Cannabist Company Holdings Inc · NEO:CBST
Cannabist — Columbia Care — Q3 2022 Earnings Presentation
29 slides from Cannabist's earnings presentation, Nov 21, 2022
Slide 1: Third Quarter 2022 Investor Presentation
Exhibit 99.2 THIRD QUARTER 2022 INVESTOR PRESENTATION NEO:CCHW | CSE:CCHW | OTCQX:CCHWF | FSE:3LP November 2022
Slide 2: Disclaimer and Forward-Looking Statements
2 DISCLAIMER AND FORWARD-LOOKING STATEMENTS Disclaimer Columbia Care Inc. (the “Company” or “Columbia Care”) derives a substantial portion of its revenues from the cannabis industry in certain U.S. states, which industry is illegal under U.S. federal Law. Columbia Care is directly involved in both t
Slide 3: Disclaimer and Forward-Looking Statements
3 DISCLAIMER AND FORWARD-LOOKING STATEMENTS Caution Concerning Forward-Looking Statements This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Statements concerning Columbia Care’s o
Slide 4: Company Overview
4 4 COMPANY OVERVIEW Building Scale, Improving Efficiency and Growing Profitability Across Strategic National Platform 33 17 $35B+ 99 (1) US Cultivation & Jurisdictions in 2026 TAM in Licensed US Retail Locations (1) (2) Manufacturing Facilities US US States 2% +2M 150+ $133M QoQ Topline Revenue Sqf
Slide 5: Vertical Integration on National Scale
5 5 VERTICAL INTEGRATION ON NATIONAL SCALE PENNSYLVANIA NEW YORK MASSACHUSETTS 1 3 2 8 1 3 Vertically Integrated UTAH COLORADO OHIO from Coast to Coast 1 5 26 1 5 NEW JERSEY 2 3 Wholesale Distribution in 16 Markets DELAWARE 2 3 MARYLAND 33 Cultivation and MISSOURI ILLINOIS WEST VIRGINIA 2 4 Manufact
Slide 6: One of the Most Strategically Positioned MSOs
6 6 ONE OF THE MOST STRATEGICALLY POSITIONED MSOs (1) Addressable market is >52% of the U.S. population with significant upside potential (2) Columbia Care U.S. Footprint Columbia Care Addressable Market Pursuit Activity Adult Use Anticipated Medical Only State Population (M) Est 2022 Sales (US$M) E
Slide 7: Q3 2022 Business Highlights
7 Q3 2022 BUSINESS HIGHLIGHTS Improving efficiencies and scaling across strategic national portfolio Revenue growth driven by emerging markets of New Jersey and Virginia; strong 1 wholesale performance (+3% sequentially) Adj. EBITDA +75% QoQ; 16 out of 17 markets were EBITDA positive during the quar
Slide 8: Revenue and Gross Margin Expansion
8 REVENUE AND GROSS MARGIN EXPANSION From Q3 2020 to Q3 2022, Columbia Care has averaged ~13% sequential revenue growth and increased Adj. Gross Margin by ~400 basis points $160.0 60% 49% $140.0 50% 46% 43% 45% 43% $120.0 43% 42% 40% 40% $133 39% $100.0 $130 $139 $132 Q3 2022 Adj. $123 Gross Profit
Slide 9: Profitability Trends by Market
9 PROFITABILITY TRENDS BY MARKET Profitability metrics throughout national portfolio Top 5 Markets by Revenue Top 5 Markets by Adj. Gross Margin Top 5 Markets by Adj. EBITDA Top 5 Markets by Adj. EBITDA Margin Q3 2022 Q3 2022 Q3 2022 Q3 2022 Colorado Delaware Delaware California 55% 57% 61% 34% Mass
Slide 10: Growth Trajectory & 2022 Catalysts
10 GROWTH TRAJECTORY & 2022 CATALYSTS 46% 140,000 50 45% 43% 43% 45 120,000 38% 40 117,506 27% 100,000 35 77,445 30 80,000 25 CapEx spend on purpose-built 60,000 20 Initial CAPEX investments continue to 42,885 infrastructure generates returns as 15 generate returns as infrastructure 40,000 29,511 29
Slide 11: Priority Growth Markets
11 11 PRIORITY GROWTH MARKETS Columbia Care in New York Columbia Care in New Jersey Columbia Care in Virginia $5B+ $3B+ $3B+ (1) (1) (1) Projected TAM Projected TAM Projected TAM 8 Retail Locations (4 Active, 4 In development) 12 Retail Locations (5 Active, 7 In Development) ~148k sqft Existing Cult
Slide 12: Expansive Retail Operations
12 12 EXPANSIVE RETAIL OPERATIONS (1) Active Retail Locations by Quarter 85 90 84 84 79 75 80 73 69 67 70 59 60 50 40 35 34 30 25 18 20 16 13 10 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Retail Highlights • Dispensary revenue per square foot • Cannab
Slide 13: Low-Cost Cultivation, Efficient & Scalable Production
13 13 LOW-COST CULTIVATION, EFFICIENT & SCALABLE PRODUCTION 33 facilities with +2 million sq. ft of cultivation and manufacturing capacity Jurisdiction Facility Count Total Size (sqft) Status Arizona 2 34,800 Operational California 2 81,600 Operational Colorado 6 185,253 Operational 20,000 Operation
Slide 14: Financial Highlights
14 14 FINANCIAL HIGHLIGHTS (in US$ thousands) FY 2021A Q4 2021A Q1 2022A Q2 2022A Q3 2022A 2022 Outlook P&L / Cash Flow Revenue 460,080 139,276 123,087 129,571 132,733 Topline: Adj. EBITDA 57,852 20,592 16,832 12,029 20,993 Flat to low single-digit growth Interest Expense 30,014 11,314 11,244 11,484
Slide 15: Third Quarter 2022 State Highlights
15 15 THIRD QUARTER 2022 STATE HIGHLIGHTS Top 5 Markets by Revenue: California, Colorado, New Jersey, Ohio, Virginia Top 5 Markets by Adjusted EBITDA: Colorado, New Jersey, Ohio, Pennsylvania, Virginia Market Commentary • Q3 2022 saw the highest revenue, Gross Margin and EBITDA in California YTD des
Slide 16: Third Quarter 2022 State Highlights
16 16 THIRD QUARTER 2022 STATE HIGHLIGHTS Top 5 Markets by Revenue: California, Colorado, New Jersey, Ohio, Virginia Top 5 Markets by Adjusted EBITDA: Colorado, New Jersey, Ohio, Pennsylvania, Virginia Market Commentary • Revenue and Gross Margin relatively flat; QoQ improvement in profitability • S
Slide 17: Tempe, AZ
17 Tempe, AZ
Slide 18: Cannabist Expansion
18 CANNABIST EXPANSION Columbia Care’s new retail storefront experience is centered on making shopping simple and approachable for the vast range of experience levels as cannabis use is normalized and legalized across the U.S., with knowledgeable staff and technology-enhanced interaction. 32 Cannabi
Slide 19: Building National Brand and Product Portfolio
19 BUILDING NATIONAL BRAND AND PRODUCT PORTFOLIO Growing our proprietary brand footprint through expanded market penetration and wholesale reach In-house brands accounted for over 60% of all flower sold at Columbia Care owned dispensaries in Q3. Owned brands also made up 50% of sales Wholesale SKU d
Slide 20: Award-Winning Products & Services
20 20 AWARD-WINNING PRODUCTS & SERVICES High Times Cannabis Cup Illinois 2021 st • Hybrid Flower 1 Place: Triple 7, Rainbow Runtz nd • Indica Flower 2 Place: Seed & Strain, Velvet Glove nd • Pre-Roll 2 Place: Seed & Strain, Cherry Chem rd • Sativa Flower 3 Place: Triple 7, Tropical Runtz High Times
Slide 21: Seed & Strain
21 ROOTED IN LAND & HARVESTED BY HAND Upscale yet accessible, Seed & Strain is the most widely distributed brand across the entire portfolio Seed & Strain demonstrated a 26% QoQ increase across all categories. In Q3 2022, Seed & Strain entered New York, bringing its total state footprint to 14 marke
Slide 22: Triple Seven
22 Our Cannabis is at the uppermost end of the quality spectrum, and our strains are unwavering in consistency. We’ve gone above and beyond the highest industry standards to cultivate the best strains that deliver every time. Our ultra-premium brand has national penetration and is now available in 1
Slide 23: Classix: Amplify Today
23 AMPLIFY TODAY Classix is our every day, timeless lifestyle brand that celebrates incredible cannabis moments shared with friends Classix is now available in 14 markets, with additional states expected in 2022. Classix successfully launched in 5 markets (AZ, MA, IL, DE, & NJ), and represented the
Slide 24: Hedy
24 HEDY SLIDE Whichever path you choose, it’s always an exhilarating one. With HEDY the sky's the limit. Infused with Azuca fast-acting TiME INFUSION™, allowing high- quality cannabinoids to take effect in a groundbreaking, consistent, and predictable two to fifteen minutes In Q3 2022, Hedy launched
Slide 25: Tyson Is Back
25 TYSON IS BACK. Tyson 2.0 is an extraordinary balance of premium and affordable, full-spectrum cannabis flower, concentrates, and consumables available at retailers nationwide. Tyson 2.0 launched with Columbia Care as its exclusive national cultivation and manufacturing partner Tyson 2.0 currently
Slide 26: Amber
26 Formulations crafted by connoisseurs Vibes crafted by you AMBER is now available in nine markets (AZ, CA, CO, DC, DE, IL, MA, NJ, WV), and in Q3 revenue grew 94% QoQ California launched AMBER Diamonds and Live Sauce, two elevated concentrates that will situate AMBER as a sophisticated concentrate
Slide 27: A Retail Platform Built for Continuous Innovation
27 A RETAIL PLATFORM BUILT FOR CONTINUOUS INNOVATION How do you want to feel today? Technology and efficiency innovation will continue to heighten the in-store and at-home shopping experience at Cannabist and create an all-encompassing ecosystem from home to dispensary and online Forage is our award
Slide 28: Stash Cash App
28 Stash Cash app offers a streamlined shopping experience to build and track loyalty rewards, shop from anywhere and discover new products. Stash Cash has features that allow Earn rewards for enjoying cannabis. The Stash Cash app is a platform for users to set their favorite dispensary and It doesn
Slide 29: Columbia Care
(o Columbia Care