Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q3 2022 Earnings Presentation
15 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, November 2022
Slide 1: Ascend Wellness Holdings Q3 2022 Company Presentation
Ascend Wellness Holdings Q3 2022 Company Presentation 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation includes forward-looking information and statements (together, “forward-looking statements”), which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of Ascend Wellness Holdings
Slide 3: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania. Owns and operates state-of-the-art cultivation facilities; grows award-winning strains and produces a curated selection of products. Tickers CSE: AAWH.U; OTCQX: AAWH EV1 $573
Slide 4: 6 states 23 operating dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 6 states MICHIGAN OHIO 23 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 8 retail 3 retail 7 retail 2 dispensary pending close2 1 cultivation / processing 1 planned retail1 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA O
Slide 5: Ascend Investment Thesis
ASCEND INVESTMENT THESIS FOCUS: ACHIEVE SCALE IN SELECT LIMITED LICENSE MARKETS KEY FLAGSHIP LOCATIONS IN MARKETS WITH HIGH BARRIERS TO ENTRY DISCIPLINED CAPITAL ALLOCATION; SUCCESSFUL EXECUTION OF M&A MANAGEMENT WITH PROVEN TRACK RECORD OF EXECUTION IN IL CONTINUED MARGIN IMPROVEMENT AS MORE ASSETS
Slide 6: Poised for Continued Success in Next Chapter
POISED FOR CONTINUED SUCCESS IN NEXT CHAPTER Tremendous progress achieving original goals; prepared for success in next chapter with a new leader Net Revenue Growth1 ORIGINAL THESIS TODAY US$ Millions $445 147% CAGR Key flagship locations: $15.3 million location, location, location ANNUALIZED REVENU
Slide 7: 4 of Top 10 Rec Markets and 2 of Top 3 Medical Markets
4 OF TOP 10 REC MARKETS AND 2 OF TOP 3 MEDICAL MARKETS Total Number 2020E Legal plus Population of Dispensaries Population Per Illicit Sales State (2021 in Millions)(1) (2021)(2,3) Dispensary State Rank(4) ($U.S. Billions)(4) RECREATIONAL Illinois 12.7 115 115,000 4 $3.2 Michigan 10.1 448 22,500 5 $
Slide 8: Highly Desirable Flagship Locations
PENNSYLVANIA CHICAGO ST. LOUIS AREA NEW JERSEY Scranton River North Collinsville Rochelle Park HIGHLY HIGHLYDESIRABLE FLAGSHIP DESIRABLE LOCATIONS FLAGSHIP LOCATIONS • Top locations in each state • From strategically located in the retail corridor near St. Louis to minutes from the George Washington
Slide 9: Good-Better-Best Brand Strategy
GOOD-BETTER-BEST BRAND STRATEGY 3 in-house brands fill the good-better-best spectrum; coupled with partner brands to target additional demographics AVAILABLE IL, MA, MI, NJ AVAILABLE IL, MA, MI, NJ, OH AVAILABLE IL, MA FORM FACTORS Flower, pre-rolls FORM FACTORS Edibles, vapes, flower, glass FORM FA
Slide 10: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Y/Y: Q3’21 VS. Q3’22 Net Revenue Growth1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions US$ Millions US$ Millions 25.0% 45.5% 46.3% 24.9% +17.9% $111.2 +16% $50.6 +18% $27.8 $94.4 $43.7 $23.5 Margin: Margin: -77 bps +3 bps Q3 '21 Q3 '22 Q3 '21 Q3 '22 Q3 '21 Q3
Slide 11: Q3 2022 Balance Sheet and Cash Flow
Q3 2022 BALANCE SHEET AND CASH FLOW 9/30/22 ($ in millions) ($ in millions) Cash & Equivalents 91.4 Fully Diluted Shares Outstanding 195.1 Basic & D i l u t e d (1) To t a l D e b t , n e t (2) 310.4 6/30/22 9/30/22 N e t D e b t (3) 219.0 • $1.8M net cash used for operations inclusive of a $6M use
Slide 12: Use of Non-GAAP Financial Metrics and Additional Information
USE OF NON-GAAP FINANCIAL METRICS AND ADDITIONAL INFORMATION This presentation includes certain non-GAAP financial measures as defined by the SEC including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. Reconciliations of these non-GAAP financial measures
Slide 13: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” Smithfield, PA Grand , MI 3rd PA 10th IL 5th PA Cultivation Phase 1 Dispensary Dispensary- Dispensary- location TBD Dispensary - location TBD location TBD Franklin, NJ Cincinnati, OH 6th PA Cultivation Phase 2 Tinley Park, IL Dispensary
Slide 14: GAAP Reconciliations ($000s)
GAAP RECONCILIATIONS ($000S) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Adjusted Gross Profit Gross Profit $ 29,667 $ 34,516 $ 40,954 $ 30,835 $ 135,972 $ 23,447 $ 32,968 $ 36,636 Gross Margin 44.9% 41.4% 43.4% 34.8% 40.9% 27.6% 33.8% 32.9% Depreciation and amortization included
Slide 15: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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