Canopy Growth Corporation · TSX:WEED
Canopy Growth — Investor Presentation (April 2020)
28 slides from Canopy Growth's investor presentation, April 2020
Slide 1: Canopy Growth Corporation Investor Presentation April 2020
CANOPY GROWTH CORPORATION Investor Presentation April 2020
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “Forward-Looking State
Slide 3: COVID-19
COVID-19 PRIORITIES • Take care of our staff, families and consumer • Ensure business continuity • Opportunistically explore ways to capture revenue and market share ACTIONS TAKEN • Implemented company-wide work from home program (role permitting) • Temporarily closed corporate-owned retail stores,
Slide 4: Key Themes: Vision & Opportunity
KEY THEMES VISION & OPPORTUNITY FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW COMMITTED TO DELIVERING SHAREHOLDER VALUE 4
Slide 5: Building a Profitable World-Class Cannabis Company
VISION & OPPORTUNITY BUILDING A PROFITABLE WORLD-CLASS CANNABIS COMPANY GROSS REVENUE MIX (Q3 FY18 VS. Q3 FY20) ❖ Generated over $460MM Q3 FY20 in Gross Revenue on a STRATEGIC TTM basis1 ACQUISITIONS ❖ Leading market share in 24% Canadian Recreational Q3 FY18 CANADIAN market RECREATIONAL 51% ❖ Diver
Slide 6: Drive Conversion from Illicit to Regulated Market
VISION & OPPORTUNITY DRIVE CONVERSION FROM ILLICIT TO REGULATED MARKET Combined Estimated Market Size, $B ILLICIT REGULATED 8.7 0.4 2.2 5.6 64.6 92.8 1 2 3 1) CIBC, Economic Insights, The Winter of Our Discontent, Jan 2016, in CAD, Recreational and Medical combined. 2) Marijuana Business Factbook 7t
Slide 7: Cannabis Global Market Opportunity
VISION & OPPORTUNITY CANNABIS GLOBAL MARKET OPPORTUNITY Estimated 400 $359 U.S. CANADA Countries $345B+ TAM1 350 Estimated Cannabis 300 Sales vs. Other CPG With / Exploring Within 15 years 250 Categories in Canada & Legal Cannabis Including: 200 U.S. (in CAD $B) 3352 Framework 150 $119 U.S. Rec and
Slide 8: Recruit New Adult Consumers to the Cannabis Market
VISION & OPPORTUNITY RECRUIT NEW ADULT CONSUMERS TO THE CANNABIS MARKET EDIBLE, VAPE, PRE-ROLL AND OTHER FORM FACTORS COMBINED, U.S. SALES MIX GREW FROM 35% IN 2015, TO 58% IN 2019 8
Slide 9: Add New Consumption Occasions Through New Form Factors
VISION & OPPORTUNITY ADD NEW CONSUMPTION OCCASIONS THROUGH NEW FORM FACTORS More Than 1-in-4 People Intend To Use Cannabis Beverages1 1) Cowen’s Canadian Cannabis Survey (May 2019, n=~1700) 9
Slide 10: Key Themes: From Investment Phase to Focused Execution Phase
KEY THEMES VISION & OPPORTUNITY FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW COMMITTED TO DELIVERING SHAREHOLDER VALUE 10
Slide 11: Pivoting from Investment Phase to a Focused Execution Phase
PIVOTING FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE NEW LEADERSHIP TEAM’S KEY PRIORITIES We are pivoting to become: ❖ A consumer-centric organization ❖ A more focused and disciplined company ❖ A profitable company that can generate positive cash flow ❖ A trusted and credible partner to all s
Slide 12: A Sizable Opportunity in Canada to Capture Increased Number of Retail Stores
PIVOTING FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE A SIZABLE OPPORTUNITY IN CANADA TO CAPTURE INCREASED NUMBER OF RETAIL STORES CURRENT: ON & QC 60% of Pop., < 12% of Stores (94) NATIONAL1 840 MARKET DEMAND: ON & QC should QC have between ON 1100 and 23002 stores 1) BofA Securities, March 3
Slide 13: Remain a Trusted Partner in Canada Medical Market
PIVOTING FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE REMAIN A TRUSTED PARTNER IN CANADA MEDICAL MARKET • 86,300+ healthcare professional visits1 • Learning modules accredited by Canadian Pharmacy Association • Pilot program w/ Ontario Long Term Care Association • E-learning modules w/ Tree of
Slide 14: Build a Leadership Position in the U.S.
PIVOTING FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE BUILD A LEADERSHIP POSITION IN THE U.S. U.S. CBD Market already at $4B; forecast to reach $20B by 20251 U.S. CBD USAGE BY FORM FACTOR ❖ 14% of Americans using CBD products, per Others, 20% July 2019 Gallup Poll Tinctures, 41% ❖ Over-indexes
Slide 15: Planned Acquisition of Acreage Holdings; Acreage Leveraging Canopy IP
PIVOTING FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE BUILD A LEADERSHIP POSITION IN THE U.S. Planned Acquisition of MSO Acreage Holdings on Cannabis Federal Permissibility1 Acreage Leveraging Canopy IP2 • Tweed-branded flower launched in IL, ME, MA, and OR, increasing number of Tweed strains
Slide 16: Key Themes: Vision & Opportunity
KEY THEMES VISION & OPPORTUNITY FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW COMMITTED TO DELIVERING SHAREHOLDER VALUE 16
Slide 17: Building Brands and Products of Today and Tomorrow
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW 17
Slide 18: Flower & Pre-Roll Joints - Market Segmentation
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW FLOWER & PRE-ROLL JOINTS - MARKET SEGMENTATION Our core brand in B2B A premium flower/pre-roll recreational; highly curated; joint brand; LBS Sunset up broad appeal1 over 50% in 3Q FY201 Our value brand; grew to nearly 20% of our sales mix as of 3Q
Slide 19: Edibles
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW EDIBLES Cannabis-infused craft chocolate produced in collaboration with award-winning chocolate maker, Hummingbird Chocolate 3 distinct “Bean-to-bar” products under the Tweed, Tokyo Smoke and Bean & Bud brands Contain up to a limit of 10 milligrams
Slide 20: Vapes
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW VAPES All Devices will obtain UL 8139 safety certification Tokyo Smoke Luma - UL 8139 certified JUJU Power™ 510 Rechargeable JUJU JOINTS™ Single-use, ready-to- vape system with rechargeable Battery Vape Pen w/ buttonless go, recyclable, Bluetooth-en
Slide 21: Beverages
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW BEVERAGES • Sophisticated taste with a range of flavor profiles to satisfy a wide variety of consumer tastes. • Low calories, no “hangover.” • Serving of 2 mg of THC is ideal for consumers, as it allows for more control. This is unlike what we see i
Slide 22: CBD
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW CBD Strong platform to enter the sports nutrition market Global leader in natural Partnerships w/ USA Hockey, Canada skincare and sleep solutions Basketball, Athletics Canada and the Professional Hockey Players Association, Developing new line of sk
Slide 23: Diversifying Our Cannabis Business
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW DIVERSIFYING OUR CANNABIS BUSINESS Europe’s largest cannabinoid-based Exports medically approved vaporizers to pharmaceuticals manufacturer 50 markets globally, w/ heat-not-burn Leading manufacturer and distributor of technology dronabinol, a regist
Slide 24: Supported by R&D & IP Protection Programs
BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW SUPPORTED BY R&D & IP PROTECTION PROGRAMS CANNABIS-BASED MEDICAL THERAPY R&D BUILDING OUR ECONOMIC MOAT 130+ PATENTS, 350+ PATENT 60 HUMAN HEALTH CLINICAL TRIALS INCLUDING PHASE IIB SLEEP, PAIN, ANXIETY AND PHASE APPLICATIONS FILED TO DATE, III SPAS
Slide 25: Key Themes: Committed to Delivering Shareholder Value
KEY THEMES VISION & OPPORTUNITY FROM INVESTMENT PHASE TO A FOCUSED EXECUTION PHASE BUILDING BRANDS AND PRODUCTS OF TODAY AND TOMORROW COMMITTED TO DELIVERING SHAREHOLDER VALUE 25
Slide 26: Committed to Delivering Shareholder Value: Medium Term Targets
COMMITTED TO DELIVERING SHAREHOLDER VALUE OUR MEDIUM TERM TARGETS ❖ Positive Quarterly Adjusted EBITDA1 in Canada by 4Q FY21 ❖ Positive Quarterly Adjusted EBITDA1 for the total company by 4Q FY22 ❖ Positive Net Income within FY23-FY25 1) Adjusted EBITDA, a non-IFRS measure, is a key operational metr
Slide 27: Leadership
LEADERSHIP David Klein Mike Lee Rade Kovacevic CEO EVP & CFO President 27
Slide 28: Thank You
THANK YOU 28