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 November 2023 NASDAQ: SNDL
Slide 3: Our Purpose
Our PURPOSE Bringing people together through exceptional products and experiences. Overview sndl
Slide 4: Overview
$950MM $516MM $nil Overview Latest Quarter Market Cap1 Debt Annualized Net Revenue2 356 ~2600 $16.5MM Retail Stores Employees1 Positive Free Cash (Liquor + Cannabis Flow2 Retail)1 1As at November 10, 2023. 4 2As at September 30, 2023. See Specified Financial Measures in the SNDL Press Release – Free
Slide 5: Operating Segments
Operating Segments Overview Liquor Retail Cannabis Retail Cannabis Investments • Canada’s largest private • Canada’s largest • Robust innovation • Emphasis on sector liquor retailer cannabis retail footprint capabilities through low- cannabis credit and cost biomass sourcing, select M&A focused • Di
Slide 6: The SNDL Advantage
The SNDL Advantage Overview 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 liquor retail segment portfolio generates sheets
Slide 7: Q3 2023 Financial and Operational Highlights
Q3 Q2 Highlights Total Net Revenue Liquor Retail Net Revenue $237.6MM $151.8MM 2023 Increase of 3% YOY Stable increase YOY Financial and Operational Highlights Cannabis Retail Net Revenue Cannabis Operations Net Revenue $75.5MM $21.0MM Increase of 14% YOY Increase of 77% YOY Gross Margin Adjusted EB
Slide 8: Third Quarter 2023 Consolidated Financial Performance
Margin Growth ($000s) Third Quarter Consolidated Financial Results Revenue Growth ($000s) 60,000 3% Decrease YOY 2023 Financial 300,000 250,000 3% Increase YOY 50,000 40,000 Performance 200,000 30,000 150,000 20,000 100,000 10,000 50,000 0 - Stable performance compared to 2021 2022 2023 (10,000) 202
Slide 9: Liquor Retail
Liquor Retail
Slide 10: The SNDL Advantage: Liquor Retail
The SNDL Advantage Liquor Retail 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 warehousing diversified retail corporate services inf
Slide 11: Canada's Largest Private Sector Liquor Retailer
Liquor Retail 170 $39.34 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 12: Liquor Retail Q3 2023 Results
Liquor Retail Q3 2023 Net Revenue Gross Margin Liquor Retail Results $151.8MM $37.3MM Latest Quarter Annualized Average Adjusted EBITDA¹ Revenue Per Store $19.2MM $3.6MM 12 NOTES 1Excluding corporate cost allocation.
Slide 13: Cannabis Retail
Cannabis Retail sndl
Slide 14: The SNDL Advantage: Cannabis Retail
The SNDL Advantage Cannabis Retail Regulatory Diversified Robust Data Disciplined Compliant Banner & Consumer Retail Structure Strategy Insights Operations Targeting distinct Leverage extensive Emphasis on effective A vertically integrated transactional data, to and cost-efficient consumer segments
Slide 15: Canada's Largest Private Sector Cannabis Retailer
Cannabis Retail Canada’s Largest Private Sector Cannabis 186 Retail Locations in AB, BC, $38.47 Average Basket Size3 MB, ON and SK1 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 16: Cannabis Retail Q3 2023 Results
Cannabis Retail Q3 2023 Net Revenue Gross Margin Cannabis Retail Results $75.5MM $20.0MM Latest Quarter Annualized Adjusted EBITDA¹ Average Revenue Per Store2 $8.0MM $2.4MM NOTES 16 1Excludes Corporate Cost. 2Based on store-level revenue for corporately-owned stores. Comparisons are from the third q
Slide 17: Cannabis Operations
Cannabis Operations ae sndl
Slide 18: The SNDL Advantage: Cannabis Operations
The SNDL Advantage Cannabis Operations 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 operations tailored to biomass procurement,
Slide 19: Cannabis Operations Q3 2023 Results
Cannabis Operations Q3 Net Revenue Cost of Sales 2023 Cannabis $21.0MM $21.0MM Operations Results Adjusted EBITDA¹ Gross Margin ($4.0MM) ($8.7MM) 19 NOTES 1Excludes Corporate Cost Comparison are from the third quarter of 2022.
Slide 20: Cannabis Operations Q3 2023 Highlights
Cannabis Operations Q3 25% Launched 41 SKUs including large format flower, vapes and pre- 2023 Cannabis Average THC Potency rolls under the Palmetto and Versus brands. Operations Highlights 124% 105g/ft2 Increase in pre-roll production in the last quarter. Cultivation Yield at the SNDL Atholville Fa
Slide 21: Investments
Investments {O} sndl
Slide 22: Investments Q3 2023 Results
Q3 Investments 2023 Capital deployed in credit and equity investments Share of the profit of equity- accounted investees $583MM Investments Results $6.6MM Investment Revenue Interest and Fee Revenue $0.09MM $3.3MM NOTES 22 1Share of profit of equity accounted investees includes non-cash fair market
Slide 23: Strategically Deployed Capital for the Cannabis Industry
Investments Strategically deployed capital for the cannabis $583MM Fair value of all cannabis industry 5 SunStream credit portfolio industry investments1 investments1 SunStream’s investment portfolio can be bifurcated into (i) performing credits and (ii) equitization $551MM $33MM opportunities, and
Slide 24: Potential SunStream USA Compared to US MSOs
In USD Unless Otherwise Noted Investments Potential SunStream USA Compared to US MSO’s SSB Equitization Opportunities Annualized Revenue vs US MSO’s ($’mm) (1) (2) $1,600 + $1,400 $1,361 Potential Equitized Portfolio(2) $1,200 $1,077 $1,029 $969 $962 Revenue (#039;mm) $1,000 $800 $735 Potential Equitiz
Slide 25: SunStream Overview
Investments SunStream To earn attractive risk- To deploy capital into adjusted returns through cannabis investments Overview secured debt, including US opportunities hybrid securities, and to comply with NASDAQ Why was distressed debt / equity. requirements. SunStream launched? To leverage the finan
Slide 26: Balance Sheet: Comparable Valuation Analysis
Balance Sheet Overview COMPARABLE VALUATION ANALYSIS Net Cash / (Debt) + Share Share Mkt Total 30D Avg. Daily Total Cash / COMPARABLE VALUATION ANALYSIS Investments LQA Cash Flow Price Price Cap Debt Cash EV2 per FD S/O Value Traded3 Use In Ops US$ / sh C$ / sh C$mm C$mm C$mm C$mm C$ / sh C$mm Years
Slide 27: Income Statement: Comparable Valuation Analysis
Income Statement Overview COMPARABLE VALUATION ANALYSIS Revenue EBITDA EV / Revenue EV / EBITDA CY23E CY24E CY25E CY23E CY24E CY25E CY23E CY24E CY25E CY23E CY24E CY25E C$mm C$mm C$mm C$mm C$mm C$mm Tilray Brands, Inc. $971 $1,233 $1,320 $85 $127 $191 2.1x 1.7x 1.6x 24.2x 16.2x 10.8x Cronos Group Inc
Slide 28: SNDL Valuation: Net Asset Value Waterfall
SNDL Valuation Overview NET ASSET VALUE WATERFALL Denoted in C$/sh $4.80 (US$3.47) C$2.90/sh (US$2.09/sh) SIGNIFICANT UPSIDE POTENTIAL $2.03 ($0.92) $1.98 (US$1.43) Implied Residual Value for: 170 Liquor Stores 22 Corporate Stores $0.12 $0.75 65 Franchise Stores 92 Value Buds Stores (63% Ownership)
Slide 29: Analyst Coverage
Analyst Coverage Frederico Gomes ATB Financial Matt Bottomley Canaccord Genuity Sophie Pilon Investor Relations and Communications investors@sndl.com
Slide 30: Appendices
Appendices 30
Slide 31: Coast-to-Coast Retail and Production Footprint
Coast-to-Coast Retail and Production Footprint Overview 31 SNDL National Footprint as at November 10, 2023.
Slide 32: Liquor Retail Brand Portfolio
Brand Portfolio Liquor Retail Wine and Beyond is Western Canada’s Liquor Depot is a convenience retail liquor Ace Liquor Discounter has more largest liquor stores. We pride ourselves outlet with over 20 locations in Alberta. than 138 locations in Alberta where on having a selection of over 6,000 you
Slide 33: Cannabis Retail Brand Portfolio
Cannabis Retail Brand Portfolio Spiritleaf aims to be the most Superette is a retail brand that makes knowledgeable and trusted source of 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 34: Cannabis Operations Brand Portfolio
PREMIUM CORE Brand Cannabis Operations Portfolio VALUE DISCOUNT 34