Slide 1: 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 events or developments concerning SNDL Inc. (“SNDL" or the "C
Slide 2: Corporate Presentation
Corporate Presentation March 2024 NASDAQ: SNDL
Slide 3: Our Purpose
SNDL Corporate Presentation Year End & Fourth Quarter 2024 Our Purpose Bringing people together through exceptional products and experiences. 3 4
Slide 4: Operating Segments
SNDL Corporate Presentation Year End & Fourth Quarter 2024 Operating Segments LIQUOR RETAIL CANNABIS RETAIL CANNABIS OPERATIONS INVESTMENTS • Canada’s largest • Canada’s largest • Robust innovation • Emphasis on cannabis private sector liquor cannabis retail capabilities through credit and select M&
Slide 5: The SNDL Advantage
SNDL Corporate Presentation Year End & Fourth Quarter 2024 The SNDL Advantage 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
Slide 6: Highlights
SNDL Corporate Presentation Year End & Fourth Quarter 2024 OPERATING $530MM Market Cap1 HIGHLIGHTS 357 Retail Stores (Liquor + Cannabis Retail)1 ~2600 $994MM $17.7MM Employees1 Latest Quarter $nil Positive Free Cash Annualized Net Debt Flow in the 2nd half Revenue2 of 20232 6 1As at March 20, 2024.
Slide 7: 2023 Highlights
YE 2023 Highlights Record Net Revenue Record Gross Profit $909MM $190.4MM 2023 Increase of 28% YOY Increase of 36% YOY Financial and Operational Highlights Gross Margin Adj. Operating Income 21% ($97.7MM) Increase of 1.3pp YOY A 44% improvement YOY Free Cash Flow Unrestricted Cash ($60.9MM) $195MM 7
Slide 8: Consolidated Financial Results
Net Revenue Growth ($000s) Gross Profit Growth ($000s) Fourth Quarter Consolidated Financial Results 80,000 28% Increase YOY 300,000 2023 Financial 60,000 36% Increase YOY Performance 200,000 40,000 100,000 20,000 - Record Growth and Improvements 0 2021 2022 2023 2021 2022 2023 in Profitability (20,
Slide 9: Consolidated Financial Results
All Segments Contributing to Growth and Financial Consolidated Financial Results Performance for 2023 +28% +36% 9 NOTES 1. All numbers are for 2023, ending December 31, 2023. Revenue comparisons for 2022 include operations from March 31 to December 31, 2022, following the acquisition of Alcanna Inc.
Slide 10: Fourth Quarter Financial Results
All Segments Contributing to Growth and Financial Fourth Quarter Financial Results Performance for the Fourth Quarter of 2023 +31% +3.4% 10 NOTES 1. All numbers are for the fourth quarter of 2023, ending December 31, 2023. Revenue comparisons for 2022 include operations from March 31 to December 31,
Slide 11: Fourth Quarter Highlights
Q4 Fourth Quarter Highlights Net Revenue Record Gross Profit $248.5MM $57.3MM 2023 Increase of 3% YOY Increase of 31% YOY Financial and Operational Highlights Gross Margin Adj. Operating Income 23% ($27.0MM) Increase of 5pp YOY A 59% improvement YOY Free Cash Flow Unrestricted Cash $1.4MM $195MM 11
Slide 12: Liquor Retail
LiquorRetail A sndl
Slide 13: The SNDL Advantage
SNDL Corporate Presentation Year End & Fourth Quarter 2024 The SNDL Advantage 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 warehous
Slide 14: Liquor Retail Q4 2023 Results
Liquor Retail Q4 2023 Net Revenue Gross Profit Liquor Retail Results $159.5MM $38.4MM Gross Margin Adj. Operating Income 24.1% $10.1MM 14 NOTES 1Excluding corporate cost allocation. Result comparisons are from the fourth quarter of 2022.
Slide 15: Liquor Retail
Liquor Retail 170 $42.34 Canada’s Largest Private Sector Liquor Retail locations in Alberta Average Basket Size3 Retailer and British Columbia1 SNDL's Liquor Retail segment has substantial experience and scale operating in competitive & regulated retail environments and generates consistent revenue
Slide 16: Cannabis Retail
Cannabis Retail f= sndl
Slide 17: The SNDL Advantage
SNDL Corporate Presentation Year End & Fourth Quarter 2024 The SNDL Advantage Regulatory Diversified Robust Data Disciplined Compliant Banner & Consumer Retail Structure Strategy Insights Operations Targeting distinct Leverage extensive Emphasis on effective A vertically integrated transactional dat
Slide 18: Cannabis Retail Q4 2023 Results
Cannabis Retail Q4 2023 Net Revenue Gross Profit Cannabis Retail Results $75.2MM $20.0MM Gross Margin Adj. Operating Income 26.7% ($0.8MM) 18 NOTES 1Excluding corporate cost allocation. 2Excludes franchise system-wide sales. Comparisons are from the fourth quarter of 2022.
Slide 19: Cannabis Retail
Cannabis Retail 187 Canada’s Largest Private Sector Cannabis Retail Locations in AB, BC, MB, ON and SK1 $38.89 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 20: Cannabis Operations
Cannabis Operations & sndl
Slide 21: The SNDL Advantage
SNDL Corporate Presentation Year End & Fourth Quarter 2024 The SNDL Advantage Cost- Innovation Consumer & Flexible Effective Pipeline Customer Manufacturing Cultivation Centric Vertical integration Tailor production to Evolving cultivation Leveraging low-cost market demand enables a more agile opera
Slide 22: Cannabis Operations Q4 2023 Results
Cannabis Operations Q4 Net Revenue Gross Profit 2023 Cannabis $26.0MM ($1.1MM) Operations Highest Revenue Since Q3 2019 Results Gross Profit Adj. Operating Income +88% ($7.6MM) Year-Over-Year 22 NOTES 1Excluding corporate cost allocation. Result comparisons are from the fourth quarter of 2022.
Slide 23: Cannabis Operations Q4 2023 Highlights
Cannabis Operations Q4 27LPs 125SKUs 2023 Cannabis Preferred B2B Partner to Licensed Producers in Canada1 2 As a result of cannabis portfolio rationalization and revitalization.3 Operations Highlights 104g/ft Average Cultivation Yield 2 25% Average THC Potency NOTES 1With the acquisition of The Vale
Slide 24: Investments
Investments
Slide 25: Investments Q4 2023 Results
Investments Q4 Capital deployed in credit and Share of the profit of equity- 2023 equity investments accounted investees Investments Results $571.6MM ($8.4MM¹) Investment Income Interest and Fee Revenue ($0) $3.3MM NOTES 25 1Share of profit of equity accounted investees includes non-cash fair market
Slide 26: Investments
Investments Strategically deployed capital for the $571.6MM 5 cannabis Book value of all cannabis SunStream credit portfolio industry industry investments1 investments1 SunStream’s investment portfolio can be bifurcated into (i) performing credits and (ii) equitization $538.3MM $33.3MM opportunities
Slide 27: SunStream Overview
Investments SunStream To earn attractive risk- To deploy capital into adjusted returns through cannabis investments Overview secured debt, including U.S. hybrid securities, and opportunities to comply Why was distressed debt / equity. with NASDAQ SunStream requirements. launched? To leverage the fin
Slide 28: Potential SunStream USA Compared to US MSOs
Potential SunStream USA Compared to US MSO’s Investments SSB Equitization Opportunities LQA(1) Revenue vs US MSO’s ($’mm) (2) In USD + $1,600 $1,381 Potential Equitized $1,400 Portfolio(2) $1,200 $1,148 $1,113 $1,006 $1,000 $949 $800 $753 Potential Equitized $600 $561 $513 Portfolio(2) $459 $400 $34
Slide 29: Balance Sheet Overview: Comparable Valuation Analysis
Balance Sheet Overview COMPARABLE VALUATION ANALYSIS Net Cash / (Debt) + Share Share Mkt Total 30D Avg. Daily Total Cash / Investments LQA Cash Flow Price Price Cap Debt Cash EV per FD S/O Value Traded2 Use In Ops US$ / sh C$ / sh C$mm C$mm C$mm C$mm C$ / sh C$mm Years Tilray Brands, Inc. US$1.98 C$
Slide 30: Income Statement Overview: Comparable Valuation Analysis
Income Statement Overview COMPARABLE VALUATION ANALYSIS Revenue EBITDA EV / Revenue EV / EBITDA CY24E CY25E CY26E CY24E CY25E CY26E CY24E CY25E CY26E CY24E CY25E CY26E C$mm C$mm C$mm C$mm C$mm C$mm Tilray Brands, Inc. $1,166 $1,211 $1,447 $114 $178 $257 2.2x 2.1x 1.7x 22.1x 14.1x 9.8x Cronos Group I
Slide 31: SNDL Valuation Overview: Net Asset Value Waterfall
SNDL Valuation Overview NET ASSET VALUE WATERFALL Denoted in C$/sh $1.64 $4.47 (US$3.29) ($2.39) (US$1.76) UPSIDE POTENTIAL $1.98 $2.07 (US$1.53) Implied Residual Value for: 170 Liquor Stores $0.12 21 Corporate Stores $0.72 64 Franchise Stores 97 Nova Stores (63% Ownership) 380,000 sq.ft. Atholville
Slide 32: Analyst Coverage
Analyst Coverage Frederico Gomes ATB Financial Shaan Mir Canaccord Genuity Sophie Pilon Investor Relations and Communications investors@sndl.com
Slide 33: Appendices
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Slide 34: Coast-to-Coast Retail and Production Footprint
Coast-to-Coast Retail and Production Footprint SNDL CORPORATE OFFICES CANNABIS CULTIVATION, PRODUCTION OR MANUFACTURING FACILITIES LIQUOR RETAIL CANNABIS RETAIL > a 2 oO > °
Slide 35: Liquor Retail Brand Portfolio
Wine and Beyond is Western Canada’s largest liquor stores. We pride Liquor Retail ourselves on having a selection of over 6,000 wines, 2,500 spirits and Brand 2,200 beers. Our 12 locations are known for their incredible selection, unique product offerings, and staff with excellent product knowledge
Slide 36: Cannabis Retail Brand Portfolio
Cannabis Retail Brand Portfolio Spiritleaf aims to be the most knowledgeable and trusted source of Superette is a retail brand that makes 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 37: Cannabis Operations Brand Portfolio
PREMIUM Cannabis Operations Brand Portfolio CORE VALUE 37