Terrascend Corp. · TSX:TSND
Terrascend — Investor Day (2023)
47 slides from Terrascend's investor day presentation, 2023
Slide 1: TerrAscend
TERRASCEND
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable securities laws, including the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Secur
Slide 3: Jason Wild, Executive Chairman
Jason Wild, Executive Chairman
Slide 4: Experienced Leadership Team
Experienced Leadership Team Jason Wild Ziad Ghanem Keith Stauffer Lynn Gefen Executive Chairman Chief Executive Officer Chief Financial Officer Chief Legal Officer BJ Carretta Chantelle Elsner Mary Turon SVP Marketing President, Northeast President, Michigan (TSX: T S N D | O T C Q X : T S N D F ) p
Slide 5: (TSX: T S N D | O T C Q X : T S
(TSX: T S N D | O T C Q X : T S N D F ) p. 5
Slide 6: Fireside Chat
Fireside Chat Tim Seymour Jason Wild Lynn Gefen Moderator, CNBC Executive Chairman Chief Legal Officer (TSX: T S N D | O T C Q X : T S N D F ) p. 6
Slide 7: Ziad Ghanem, Chief Executive Officer
Ziad Ghanem, Chief Executive Officer
Slide 8: Our Journey
Our Journey 2017 Founded CA Launched as Canadian LP 2019 2022 MI Initial investment of $52.5M Acquired The by Canopy Growth and JW Asset Management Apothecarium in CA Acquired Gage in MI 2023 Acquired 5 Dispensaries in MI Acquired Ilera in PA Acquired 4 Dispensaries in MD PA 2021 MD Begins AU on Jul
Slide 9: Operations in Highly Attractive U.S. Markets
Operations in 5 Highly Attractive U.S. Markets MICHIGAN PENNSYLVANIA Scaled vertical Scaled vertical operations operation with including large scale CALIFORNIA cultivation, cultivation and manufacturing, industry leading manufacturing, retail with 19 and 6 medical Population Population dispensaries
Slide 10: (TSX: T S N D | O T C Q X : T S
(TSX: T S N D | O T C Q X : T S N D F ) p. 10
Slide 11: State-By-State & Marketing Strategy
State-By-State & Marketing Strategy BJ Carretta Chantelle Elsner Mary Turon SVP Marketing President, Northeast President, Michigan (TSX: T S N D | O T C Q X : T S N D F ) p. 11
Slide 12: New Jersey Market
#2 New Jersey Market #1 #1 #1 Flower Vape Extracts • 140K sq ft state-of-the-art cultivation & manufacturing Share facility producing an extensive menu of high-quality company and partnered brands • New Jersey patients and customers love our products! • Ascended to #2 overall market share in August
Slide 13: Maryland
Populatio 5 Million Maryland n: Type: Medical and Adult Use (AU Began 7/1/2023) • Entered the state with a purchase of a small cultivation facility in $820 Million/year - Current1 2021 with plans to build a new facility Size1 : $1.3 Billion/year - 20271 • Rapid market penetration going from 0 to 4 d
Slide 14: Pennsylvania
Population : 13 Million Pennsylvania Type: Medical Size1 : $1.1 Billion/year - Current1 • With 13M people and the largest cultivation footprint, $1.8 Billion/year - 20272 Pennsylvania should be TerrAscend's #1 state upon Adult Use launch • Currently profitable despite being underutilized • Prepared
Slide 15: Michigan
Population : 10 Million Michigan Type: Medical and Adult Use (AU Began 12/1/2019) • Largest US market per capita at nearly $3 Billion+ run rate sales Size1 : $2.9 Billion/year - Current1 $3.8 Billion/year - 20271 • Acquired Gage in April '22, company; took decisive action to improve cost structure i
Slide 16: Marketing Strategy
Marketing Strategy terrascend.com
Slide 17: One TerrAscend Marketing
One TerrAscend Marketing Our Approach Operate Grow Unify All Service Consumer As One Brands Entire Org Base SOPs will work nationwide with Brand Unification Cohesive Creative Brand Awareness & Great a cohesive creative strategy Across All Markets Touchpoints Customer Experience (TSX: T S N D | O T C
Slide 18: Grow Consumer Base
Grow Consumer Base terrascend.com
Slide 19: Leveraging our Data through One Platform
Leveraging our Data through One Platform POS SMS eComm Email App Loyalty Program (TSX: T S N D | O T C Q X : T S N D F ) p. 19
Slide 20: Brand Portfolio
Brand Portfolio terrascend.com
Slide 21: Brand Portfolio
Brand Portfolio (TSX: T S N D | O T C Q X : T S N D F ) p. 21
Slide 22: Brand Map Connoisseur
Brand Map Connoisseur Premium Value Newbie (TSX: T S N D | O T C Q X : T S N D F ) p. 22
Slide 23: Brand Map
Brand Map Price Savvy Premium (TSX: T S N D | O T C Q X : T S N D F ) p. 23 Newbie
Slide 24: Fairly priced, highly shareable formats.
Fairly priced, highly shareable formats. (TSX: T S N D | O T C Q X : T S N D F ) p. 24
Slide 25: Exact Dosing, Smoke-Free, Discrete and Portable
Exact Dosing Smoke-Free Discrete and Portable Our products are precisely dosed, Consumption No obvious smells or accessories so you know what to expect. Enjoy the effects without any make it easy to consume on the vapor. go. (TSX: T S N D | O T C Q X : T S N D F ) p. 25
Slide 26: (TSX: T S N D | O T C Q X : T S
(TSX: T S N D | O T C Q X : T S N D F ) p. 26
Slide 27: GAGE is itself a household name
GAGE is itself a household name revered for its high-quality cannabis flower and concentrates. ü Premium cannabis. ü Sells top shelf cannabis products. ü Grows world class genetics. ü Is a community leader (TSX: T S N D | O T C Q X : T S N D F ) p. 27
Slide 28: Small Batch Cannabis | Sustainably Grown
S M A L L B AT C H C A N N A B I S | S U S TA I N A B LY G R O W N (TSX: T S N D | O T C Q X : T S N D F ) p. 28
Slide 29: North America's most trusted edibles brand
North America’s most trusted edibles brand
Slide 30: Wana's Markets
WANA’S MARKETS
Slide 31: MD #3 in MoM growth of edibles brand
MD #3 in MoM growth of edibles brand, 67% distribution, +203% in overall sales MoM, at Adult Use launch
Slide 32: NJ Rapidly took 12% share
NJ Rapidly took 12% share and on track to increase above 16%
Slide 33: Slide 33
Slide 34: What's Next?
What’s Next? (TSX: T S N D | O T C Q X : T S N D F ) p. 34
Slide 35: Fireside Chat
Fireside Chat Tim Seymour Ziad Ghanem BJ Caretta Nancy Whiteman Moderator, CNBC Chief Executive Officer SVP, Marketing CEO, Wana Brands (TSX: T S N D | O T C Q X : T S N D F ) p. 35
Slide 36: Financial Review
Financial Review Keith Stauffer Chief Financial Officer p. 36
Slide 37: Raising 2023 Guidance - Continued Strength and Momentum
Raising 2023 Guidance - Continued Strength and Momentum Net Revenue Adj EBITDA1 (in millions, US$) (in millions, US$) +28% YoY +62% YoY $317 $305 $63 $58 $248 $39 FY 2022 FY 2023E (orig) FY 2023E (updated) FY 2022 FY 2023E (orig) FY 2023E (updated) % Rev 15.7% 19.0% 19.9% 1. Adjusted EBITDA and Adju
Slide 38: Sector Leading 2023 YoY Revenue Growth
Sector Leading 2023 YoY Revenue Growth 28% 22% 8% 6% 2% 2% 0% -2% -10% -10% nd ss no R f e s i e s ne AY l ea ar tri e sh ev La b ce l er a Ju u li rr as el V Cu r a bi aC du s Tr sco Te W In e en d lu m mb Cr As c Co hu nT ee Gr All peers are based on consensus estimates, Needham Industry Update, A
Slide 39: Strong Performance and Momentum Across all Key Metrics
Strong Performance and Momentum Across all Key Metrics Net Revenue Gross Profit Margin (in millions, US$) 50%+ $175 $135 $142 49.6% $113 45.8% 35.2% 1H 2022 2H 2022 1H 2023 2H 2023E 1H 2022 2H 2022 1H 2023 2H 2023E YoY % 0% 38% 26% ~30% Operating Expenses1as % of Net Adj EBITDA2 Revenue (in millions
Slide 40: Consecutive Periods of Positive Reported Operating Cash Flow
Consecutive Periods of Positive Reported Operating Cash Flow with positive expected in 2H, including accrued taxes Operating Cashflow from Continuing Operations (in millions, US$) Turn-around + plans initiated ++ $9.8 $12.3 $15.3 $18.3 $31.6 Accrued Taxes Operating Cashflow 1H 2022 2H 2022 1H 2023 2
Slide 41: Positive Free Cash Flow expected in 2H
Positive Free Cash Flow expected in 2H, including accrued taxes Free Cash Flow from Continuing Operations1 (in millions, US$) +++ $7.6 $16.2 $18.3 $44.1 $15.3 Accrued Taxes Free Cash Flow 1H 2022 2H 2022 1H 2023 2H 2023E 1. Free cash flow from continuing operations is a non-GAAP financial measure. P
Slide 42: Strong Financial Momentum
Strong Financial Momentum 7 consecutive quarters of sequential revenue growth Sector leading revenue growth YoY Improved P&L metrics over several consecutive quarters Improved and positive cashflow profile over past several quarters Reduced debt by ~40%1 Reduced interest expense by ~30%1 Leverage ra
Slide 43: Q&A
TERRASCEND terrascend.com
Slide 44: Let's Grow Together
BEensAnY LET'S GROW TOGETHER TERRASCEND
Slide 45: Appendix
APPENDIX p. 45
Slide 46: Definition and Reconciliation of Non-GAAP Measures
Definition and Reconciliation of Non-GAAP Measures In addition to reporting the financial results in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP measures u
Slide 47: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Operating Expenses less stock-based comp and Adjusted EBITDA D&A For the Six Months Ended For the Six Months Ended 1H 2022 2H 2022 1H 2023 1H 2022 2H 2022 1H 2023 Net loss $ (2) $ (324) $ (36) General administrative expense from continuing operation $ 54.3 $ 61.2