Slide 1: —s : _—s
—s : _—s
Slide 2: Management's Discussion and Analysis of Intercure
L Management's Discussion and Analysis of Intercure This Interim Management’s Discussion and Analysis (“MD&A’) is dated November 15, 2022 and provides an analysis of the financial operating results for the three and nine months ended September 30, 2022. In this MD&A, references to the “Company”, “In
Slide 3: Forward-Looking Statements
Forward-Looking Statements 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 periods, ad
Slide 4: Non-IFRS Measures
Non-lIFRS 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. Howe
Slide 5: Third Quarter 2022 and Recent Financial & Operating Highlights
Third Quarter 2022 and Recent Financial & Operating Highlights + Record revenue of $39 million (NIS 101 million), which reoresent a 63% growth over the third quarter of 2021 and representing a sequential growth of 6%. + Eleventh consecutive quarter of growth representing an annualized run rate of ov
Slide 6: CEO quotes on quarterly results
2 LL 1 ML SH. “Yam proud of our teams delivering our eleventh consecutive quarter of profitable growth with strong operating and financial performance.” We continued to execute our international expansion plans building our footprint organically and exploring strategic acquisitions in key markets, t
Slide 7: Annualized Quarterly Revenue Run Rate (millions)
L Cannabis Sector ; | Annualized Quorterly Revenue Run Rate (millions) | , A $42 $35 $17 Q2-20 Q3-20 4-20 $70 $51 Q1-21 Q2-21 3-21 Q4-21 Q1-22 Q2-22 $155 Q3-22
Slide 8: Annualized Adjusted EBITDA (millions)
L Annualized Adjusted EBITDA (millions)" $11 $2 Q2-20 93-20 A420 1-21 “Cannabis sector Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22
Slide 9: Quarterly revenues (millions)
L Quarterly revenues (millions) Qi-21 Q2-21 Q3-21 O421 Q1-22 Q2-22 Q3-22
Slide 10: Annual Revenue (millions)
L Annual Revenue (millions) mé65
Slide 11: Adjusted EBITDA (millions)
Adjusted EBITDA (millions)* m16
Slide 12: Operational Profit (millions)
Operational Profit (millions)
Slide 13: Cash (millions)
L Cash (millions) m217 m38
Slide 14: Slide 14
Slide 15: Pharmacies chain
pharmacies chain @ [ Inprocess ] @ | Eully cnerctionl | 7 | 13 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 4-21 Q1-22 Q2-22 Q3-22 [ Expanding our leading medical cannabis disoensing ]
Slide 16: Pharmacies chain
pharmacies chain [ Expanding our leading medical cannabis dispensing ]
Slide 17: The Southern Facility
The Southern Facility
Slide 18: New Releases
New Releases Wt try un Gs Aaa
Slide 19: Cultivated at the Southern Facility
Cultivated at the Southern Facility Golden Tiger
Slide 20: Golden Tiger
Golden Tiger i ZI i LL € 0) S =| e) WY 0) S fe xe) Be 3 Ss O on SS
Slide 21: New Releases
[ New Releases j je MEDELLIN, rR Ucdelliag IMC-Medical Grade | Cannabis inflorescences A rade | Cannabis inflorescences T20/C4 INDICA T20/C4 SATIVA For use by inhalation —— THC RICH THC RICH —— 10gram 10gram or use by inhalation THE SOAP IMC-Medical Grade | Cannabis Inflorescences T20/C4 INDICA For
Slide 22: Cultivated at the Southern Facility
Cultivated at the Southern Facility CNOI7
Slide 23: Cultivated at the Southern Facility
Cultivated at the Southern Facility CNO120
Slide 24: Cultivated at the Southern Facility
Cultivated at the Southern Facility @NGIZ!
Slide 25: Cultivated at the Southern Facility
Cultivated at the Southern Facility CNOI22
Slide 26: Cultivated at the Southern Facility
Cultivated at the Souther
Slide 27: Overview
Overview We are an Israeli public corporation with shares listed for trading on the Tel Aviv Stock Exchange under the symbol “INCR”, on the Toronto Stock Exchange under the symbol “INCR:U” and on the Nasdaq under the symbol “INCR”. We, mainly through our wholly owned subsidiaries, Canndoc Ltd. (‘Can
Slide 28: Financial Highlights
Note: (1) Gross profit before effect of fair value. (2) EBITDA adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest, and other expenses (or income). This is anon-IFRS financial measure and does n
Slide 29: Tilray
Tilray Tilray Inc. (NASDAQ: TLRY) (“Tilray”) is a global pioneer in the research, cultivation, production, and distribution of cannabis and cannabinoids, currently serving patients and consumers in 16 countries spanning five continents. In December 2019, we established a strategic collaboration with
Slide 30: Fotmer Life Sciences and Global Production System
Fotmer Life Sciences Fotmer Corporation S.A. (“Fotmer”) is a corporation established in Uruguay that cultivates and produces medical cannabis at a high quality. In December 2020, we entered into an agreement with Fotmer, under which we will import from Fotmer approximately 3,000 kilograms of quality
Slide 31: Sales and Distribution
d. Sales and Distribution Israel Under current regulations, patients in Israel fill prescriptions directly from a registered pharmacy. Our products meet all of the IMCA standards and are permitted to be sold within all registered pharmacies across Israel that are otherwise permitted to dispense medi
Slide 32: Austria
Austria On April 4, 2021, we entered into a partnership with an Austrian entity to operate together in the developing cannabis markets in Austria and Luxembourg. Pursuant to the agreement, the partnership will replicate the successful model of our subsidiary Canndoc in Israel to establish and manage
Slide 33: Results for the 3 and 9-month periods
For the 9-month period For the 3-month ended on ended on September 30 September 30 2022 2021 2022 2021 Impairment losses and (gains) on financial assets through profit and loss 54 (8) 177 (333) Fair value adjustment to inventory (2,139) 2,626 (7,750) 2,611 Adjusted EBITDA 19,651 11,998 60,271 32,281
Slide 34: Liquidity and Cash Flow
period in order to fund its capital investment to expend its operations; (b) acquisitions made by the company during the year which caused an increased in lease obligations; Cash Flow Intercure’s approach to liquidity is to always have sufficient liquidity to meet its liabilities as they come due. T
Slide 35: Summary of quarterly results
Q3 Qu Qi Q4 Q3 Q Qi 2022 2022 2022 2021 2021 2021 2021 2020 Adjusted EBITDA 22,652 20,709 19,911 19,446 11,999 10,814 9,468 8,165 Basic earnings (loss) per 0.16 0.35 0.38 (0.07) — (0.03) 0.14 0.12 0.24 share Diluted earnings per share 0.16 0.34 0.36 (0.07) (0.03) 0.12 0.11 0.21 Revenues — The growth
Slide 36: Changes in Accounting Policies and Outstanding Share Data
Changes in Accounting Policies, IAS 7 During the reported period, the Company changed the classification of interest paid on loans to be classified as part of financing activity. The Company made many investments in the last year through loans and considered it more appropriate to present this under
Slide 37: Financial Instruments and Other Instruments; Risk and Uncertainties
Financial Instruments and Other Instruments We do not have any financial instruments other than normal course accounts receivable and payables associated with our business activities. Risk and Uncertainties We are subject to foreign exchange and liquidity risks. Foreign Exchange Risk. Our reporting