Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Canaccord Genuity Conference 2022
21 slides from Charlotte's Web's conference presentation, August 2022
Slide 1: Brands, Leadership, Science
BRANDS LEADERSHIP SCIENCE T SX : CWE B | OT CQ X : CWBHF Q3 2022 Charlotte’s Web, Inc. - Confidential Information
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Information Certain statements contained in this presentation constitute forward-looking statements and forward-looking information (collectively, “forward-looking statements”). Such forward-looking statements relate to possible events, conditions or financial performance
Slide 3: Charlotte's Web is CBD
CHARLOTTE’S WEB is CBD 1 BRAND IN TOTAL HEMP- # DERIVED CBD MARKET: in AWARENESS in LOYALTY in MARKET SHARE 3
Slide 4: Charlotte's Web Portfolio
OILS 35% CAPSULES 9% Product Line: Product Line: • 10ml, 30ml, 100ml Full spectrum/THC • 7ct, 30ct, 60ct, 90ct capsules in 2 Free Tinctures in 4 different strengths different strengths • Highest CBD amount for high use • Consumer friendly form that lends consumers itself to routine consumption GUMMI
Slide 5: Corporate History
CORPORATE HISTORY 2012-2013 2018-2019 2022 2023 & BEYOND Discover Connection Company IPO Manage Business To Expand into new industry between Epilepsy & CBD Sustainability Verticals; Sport, Beverage, 2018 Farm Bill Passes Cosmeceuticals Create Realm of Caring Simplify everything 501(c)3 focused on Pr
Slide 6: Management Team
JACQUES TORTOROLI - CEO Jacques has been a Director since 2019 Across his career Jacques has held Executive positions at Bacardi, Ltd. PepsiCo, VIACOM, Westwood One, Young & Rubicam Inc. And KPMG. Jacques has spent over 10 years in the U.K, Italy, Belgium and Bermuda JARED STANLEY - COO Jared is a C
Slide 7: Points of Differentiation
POINTS OF DIFFERENTIATION VERTICALLY ENORMOUS INTEGRATED PRODUCTION CAPACITY UNPARALLLED BRANDS & SCIENCE INDUSTRY AND SAFETY LEADING DTC • Full Ingredient Traceability • Built for >$1B revenue PLATFORM and Transparency • Currently at 1/4 capacity • 100% US family farms • Potential to reduce co-man
Slide 8: Regulatory Expertise & Certifications
CERTIFICATIONS REGULATORY EXPERTISE & CERTIFICATIONS 1. Responsible and pro-active approach with FDA and other regulators • Lawful advertising in line with FDA guidelines • Actively engaged in research studies to support FDA’s interest in science-based data 2. All products tested up to 20 times • Te
Slide 9: Quarterly Performance Q2 2022
Q2 - 2022 FINANCIAL HIGHLIGHTS Ø Consolidated net revenue of $18.9M Ø DTC eCommerce revenue of $13.3M Ø B2B revenue of $5.6M Ø 61% adjusted gross margin Ø Reduced SG&A expenses YoY by $30M annualized Ø Adjusted EBITDA of ($5.1M) Ø Positioning for neutral cash flow at current revenue Ø $14.8M cash an
Slide 10: Balance Sheet & Capitalization
BALANCE SHEET & CAPITALIZATION All figures shown in millions, US$ BALANCE SHEET June 30, 2022 CAPITALIZATION June 30, 2022 Cash $14.8 Basic Common Shares 145.3 Working Capital $64.6 Outstanding Warrants/RSUs 2.5 Total Assets $153.0 Total Liabilities Options 5.2 $37.1 Fully Diluted Shares 153.0 Share
Slide 11: CW 2.0: Our New Strategy
C W 2 . 0 :CW OU R AS TNEW 2.0 R A T STRATEGY EGY GROWING THE WIN IN BOTANICAL BUSINESS WASHINGTON WELLNESS EXPAND DOORS & VELOCITY NEW DIETARY SUPPLEMENT INVESTIGATIONAL NEW DRUG INGREDIENT - NDI PATHWAY - IND • Enter New Industry Verticals • Lobbyists • CW Processes Genetics & • Asset-light Intern
Slide 12: Substantial Market Share Upside
SUBSTANTIAL SUBSTA NTI A L MARKET SHARE M A RKE T SHA UPSIDE RE UP SI DE Top 20 Companies Epidiolex (Jazz Pharmaceuticals) Other 19% $662M $3.2B 67% 14% US CBD COMPANIES Q4 2021 MARKET SHARE 13
Slide 13: Growth and Expansion
GROWTH AND EXPANSION GRO W EX I ST I N G C U ST O MERS • Right Customers. Right Products. Right Price • Grow Existing Doors and Velocity • Drive Traffic & Conversion For DTC N EW VERT I C ALS • Cosmeceuticals & Beverages fastest growing segments within category • Added new Sales Team with expertise
Slide 14: International Regulatory Progress
INTERNATIONAL REGULATORY PROGRESS CANADA UK “We commend Health Canada's proactive efforts “CW was one of the first companies to be validated by on confirming the general safety of CBD FSA for our full spectrum Original Formula. We are consumption. The unanimous agreement is not additionally validate
Slide 15: Expand and Automate
EXPAND AND AUTOMATE I N HO U SE PRO DU C T I O N • New 137,000 sq ft cGMP grade manufacturing and R&D facility • Extraction, production, distribution and R&D expansion • CPG & Ecommerce shipping and distribution • Final phase III buildout and capex; shipping-production- extraction-R&D • Capable of s
Slide 16: Product Innovation: Sport, Beverages, Cosmeceuticals
PRODUCT INNOVATION SPORT BEVERAGES COSMECEUTICALS
Slide 17: Opportunities for Growth
OPPORTUNITIES FOR GROWTH 2021 US CBD MARKET Product Type 2021 Brightfield Pharmaceuticals $581,200,000.0 Other CBD Products $56,900,000.0 Pre-roll or Flower $90,400,000.0 Vape Oil and Cartridges $356,800,000.0 Pet $437,500,000.0 UNTAPPED Other Edibles $82,900,000.0 $525M ANNUAL Drinks $244,800,000.0
Slide 18: CW Sports Partnerships: The Best of the Best
CW SPORTS PARTNERSHIPS: THE BEST OF THE BEST • Carli Lloyd: Two-time gold medalist and two-time world cup champion Carli Lloyd as part of the CBDMEDIC™ family. • Angel City Football Club: Official CBD partner. Founders and investors include Serena Williams, Natalie Portman, Eva Longoria, Lindsey Von
Slide 19: MLB Approves CBD Category Sponsorship
MLB APPROVES CBD CATEGORY SPONSORSHIP “Absent the FDA or Congress regulating the CBD industry, MLB saying they are allowing CBD sponsors just gives us big credibility. It will help consumers’ perception of the quality and effectiveness of CBD. … We’re prohibited by the FDA from talking directly abou
Slide 20: Positioned for Long Term Winning
We have made material Capex investments that can support volume growth. We have stabilized our business for cash growth in '22. We have THE right to win by execution, targeted innovation. FDA will only power up our growth. We are uniquely qualified and prepared to unlock value through cannabinoid dr
Slide 21: Charlotte's Web Holdings, Inc.
TSX:CWEB | OTCQX:CWBHF Charlotte’s Web Holdings, Inc. 700 Tech Court Louisville, Colorado USA www.charlottesweb.com Cory Pala Director of Investor Relations (720) 484-8930 24 IR@CharlottesWeb.com
Charlotte's Web Holdings — Canaccord Genuity Conference 2022 on 6ix