Canopy Growth Corporation · TSX:WEED
Canopy Growth — Investor Presentation (January 2020)
22 slides from Canopy Growth's investor presentation, January 2020
Slide 1: Driving the Global Cannabis Industry
DRIVING THE GLOBAL CANNABIS INDUSTRY Canopy Growth Corporation January 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: Company Snapshot
COMPANY SNAPSHOT Canopy Growth (TSX:WEED) (NYSE:CGC) is a world- leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and soft gel capsule forms. $80.00 TSX:WEED $70.00 $60.00 Well Capitalized $2.7B3 Driving Future Growth – $50.00 Scale
Slide 4: The Regulation of Cannabis Is Spreading Globally
THE REGULATION OF CANNABIS IS SPREADING GLOBALLY Medical & Adult-Use Legalized Medical Use Legalized In the Process of Legalizing Medical Use / Exploring Legalization Industrial Hemp legalized – Path for Canopy Growth to enter US market 4
Slide 5: Driving the Canadian Medical Cannabis Market
DRIVING THE CANADIAN MEDICAL CANNABIS MARKET • 71,500+ healthcare professional visits1 • Learning modules accredited by Canadian Pharmacy Association • Pilot program w/ Ontario Long Term Care Association • Prescriber Training Program • E-learning modules w/ Tree of Knowledge. Launched in Jack Nathan
Slide 6: Driving the Global Medical Cannabis Market
DRIVING THE GLOBAL MEDICAL CANNABIS MARKET Acquired C3 5 cannabinoid therapies 300,000 sq. ft facility in Europe (3 currently Australia Market is CBD Products launched in Denmark available for sale) growing at the fastest in Q3 FY20 global rate1 Path to enter U.S. Certified in good Manufacturer & ag
Slide 7: Driving the Global Cannabis Market
DRIVING THE GLOBAL CANNABIS MARKET CANADA GERMANY DENMARK UNITED KINGDOM Canopy POLAND USA UNITED STATES SPAIN CZECH REPUBLIC Caribbean COLOMBIA Canopy LATAM PERU BRAZIL AUSTRALIA CHILE SOUTH AFRICA LESOTHO 7
Slide 8: Physical Retail Critical to Canadian Rec Market
PHYSICAL RETAIL CRITICAL TO CANADIAN REC MARKET 27 Tweed and TS Banner 10 new TS stores set to open Ontario to authorize Stores across Canada in 1H CY20 ~ 20 new stores per month1 1) Beginning in April 2020. Source: Ministry of the Attorney General News Release, December 12, 2019 - Ontario Opening C
Slide 9: Retail Store Openings to Drive Growth
RETAIL STORE OPENINGS TO DRIVE GROWTH 6 Month Canadian Retail Store Growth1 800 735 700 650 588 600 555 512 500 473 391 400 294 300 200 100 0 June 17 2019 July 15 2019 Aug 15 2019 Sept 15 2019 Oct 15 2019 Nov 15 2019 Dec 13 2019 Jan 15 2020 1) Source: Bank of America Securities Research Note, Januar
Slide 10: Bringing Differentiated Rec 2.0 Products to Market
BRINGING DIFFERENTIATED REC 2.0 PRODUCTS TO MARKET Edibles Beverages Vapes Rollout Began Q3 FY20 Rollout Q4 FY201 Rollout Q4 FY201 1) Expected to begin 10 10 10
Slide 11: Bringing Differentiated Rec 2.0 Products to Market: New SKUs
BRINGING DIFFERENTIATED REC 2.0 PRODUCTS TO MARKET 18 New SKU’s Unveiled, More to Come 11
Slide 12: Canada Rec 2.0 – Streamlined Production Underway
CANADA REC 2.0 – STREAMLINED PRODUCTION UNDERWAY BEVERAGE FACILITY Licensing of Facilities Complete • System Qualification Complete • Ingredient Production Underway ADVANCED MANUFACTURING BUILDING 12
Slide 13: Entry into U.S. CBD Market in Q3 FY20
ENTRY INTO U.S. CBD MARKET IN Q3 FY20 • Robust contract manufacturing network established • Short-path distillation at subsidiary Keyleaf’s facility in Batavia, Illinois • Future CBD product roadmap includes health & wellness, skin & beauty, and pet aides First & Free • Martha Stewart, Product Advis
Slide 14: U.S. CBD Verticals – Leveraging Brand Loyalty
U.S. CBD VERTICALS – LEVERAGING BRAND LOYALTY Product Expected to Hit Shelves In FY21 • Global leader in natural skincare and sleep solutions Significant platform to enter the sports nutrition and • Strengthens product offerings and enhances hydration segment the international footprint • Focus on g
Slide 15: Future Entry into World's Largest Cannabis Market
FUTURE ENTRY INTO WORLD’S LARGEST CANNABIS MARKET Planned Acquisition of Acreage Leveraging Canopy IP2 Acreage Holdings1 • New facility harvested first cannabis for U.S. Tweed products in Q3 FY203 • Planning rollout of Tweed and Tokyo Smoke stores in select U.S. cities Retail Brands / Cultivation &
Slide 16: Cannabinoid-Based Medical Therapies – Begin with Clinical Research
CANNABINOID-BASED MEDICAL THERAPIES – BEGIN WITH CLINICAL RESEARCH 60 HUMAN HEALTH CLINICAL TRIALS INCLUDING PHASE IIB SLEEP, PAIN, ANXIETY AND PHASE III SPASTICITY/MULTIPLE SCLEROSIS1 4 ANIMAL HEALTH CLINICAL TRIALS INCLUDING COMPANION ANIMAL ANXIETY1 3 PHARMACOKINETICS, DOSAGE & SAFETY TRIALS 1 AF
Slide 17: 250B+ Global TAM: Cannabinoids as an Ingredient
THINK CANNABINOIDS AS AN INGREDIENT IN CONSUMER PRODUCTS Beverage Alcohol Athletic Drinks IP 250B+ Health & Wellness Products GLOBAL Animal Health Products TAM Sleep Aids Pain Relief Therapies Anxiety Relief Sleep Aids: USD$ 90B by 2025, Source – Brand Essence Research Animal Health: USD$ 70B in 202
Slide 18: Digging Our Economic Moat
DIGGING OUR ECONOMIC MOAT 130+ PATENTS, 350+ PATENT APPLICATIONS FILED TO DATE, MANY MORE UNDER DEVELOPMENT • Cannabis-based beverage production • Cannabis-based therapeutics • Device & delivery technologies • Large-scale cannabis processing • Cannabis plant genetics • Broad geographic coverage 18
Slide 19: Canada Corporate
CANADA CORPORATE 40% Gross Margins by Q4 FY20 Positive Quarterly Adjusted EBITDA Positive Quarterly Adjusted by Q4 FY211 EBITDA by Q4 FY222 Net Income Positive Medium-Term (3 to 5 years) 1) Canadian operations, ex all international market related operating expenses, to deliver Positive Adjusted EBIT
Slide 20: Management Team
MANAGEMENT TEAM David Klein Rade Kovacevic Mike Lee Dr. Mark Ware CEO President EVP & CFO Chief Medical Officer 20
Slide 21: Management Team
MANAGEMENT TEAM Amanda Daley Hilary Black Peter Popplewell Amy Wasserman VP, Canada Medical Chief Advocacy Officer Chief Technology Officer VP, Marketing USA 21
Slide 22: Thank You
THANK YOU 22