Cannabist Company Holdings Inc · NEO:CBST
Cannabist — Columbia Care — Q2 2022 Earnings Presentation
30 slides from Cannabist's earnings presentation, Aug 16, 2022
Slide 1: Second Quarter 2022 Investor Presentation
Exhibit 99.2 SECOND QUARTER 2022 INVESTOR PRESENTATION NEO:CCHW | CSE:CCHW | OTCQX:CCHWF | FSE:3LP August 2022
Slide 2: Disclaimer and Forward-Looking Statements
2 DISCLAIMER AND FORWARD-LOOKING STATEMENTS Disclaimer Columbia Care Inc. (the “Company” or “Columbia Care”) derives a substantial portion of its revenues from the cannabis industry in certain U.S. states, which industry is illegal under U.S. federal Law. Columbia Care is directly involved in both t
Slide 3: Disclaimer and Forward-Looking Statements
3 DISCLAIMER AND FORWARD-LOOKING STATEMENTS Caution Concerning Forward-Looking Statements This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Statements concerning Columbia Care’s o
Slide 4: Company Overview
4 4 COMPANY OVERVIEW Building Scale, Improving Efficiency and Growing Profitability Across Strategic National Platform 32 18 $36B+ 99 (1) US Cultivation & Jurisdictions in 2026 TAM in Licensed US Retail Locations (1) (2) Manufacturing Facilities US & Europe US States 18% +2M 150+ $130M YoY Topline R
Slide 5: Vertical Integration on National Scale
5 5 VERTICAL INTEGRATION ON NATIONAL SCALE PENNSYLVANIA NEW YORK MASSACHUSETTS 1 3 2 8 1 3 Vertically Integrated UTAH COLORADO OHIO from Coast to Coast 1 5 26 1 5 NEW JERSEY 2 3 Wholesale Distribution in 14 Markets DELAWARE 1 3 MARYLAND 32 Cultivation and MISSOURI ILLINOIS WEST VIRGINIA 2 4 Manufact
Slide 6: One of the Most Strategically Positioned MSOs
6 6 ONE OF THE MOST STRATEGICALLY POSITIONED MSOs (1) Addressable market is >53% of the U.S. population with significant upside potential (2) Columbia Care U.S. Footprint Columbia Care Addressable Market Pursuit Activity Adult Use Anticipated Medical Only State Population (M) Est 2022 Sales (US$M) E
Slide 7: Q2 2022 Business Highlights
7 Q2 2022 BUSINESS HIGHLIGHTS Improving efficiencies and scaling across national portfolio Revenue +5% QoQ and +18% YoY driven by outperformance in select markets and strong 1 momentum in retail and wholesale revenues 16 out of 17 markets were EBITDA positive during the quarter; 12 out of 17 markets
Slide 8: Revenue and Gross Margin Expansion
8 REVENUE AND GROSS MARGIN EXPANSION From Q2 2020 to Q2 2022, Columbia Care has averaged ~18% sequential revenue growth and increased Adj. Gross Margin by ~650 basis points $160.0 60% $140.0 50% 49% 46% 43% 45% 43% $120.0 40% 42% Q2 2022 Adj. 40% $139 39% $130 $100.0 Gross Profit of 36% $123 $132 $5
Slide 9: Profitability Trends by Market
9 PROFITABILITY TRENDS BY MARKET Profitability metrics throughout national portfolio Top 5 Markets by Revenue Top 5 Markets by Adj. Gross Margin Top 5 Markets by Adj. EBITDA Top 5 Markets by Adj. EBITDA Margin Q2 2022 Q2 2022 Q2 2022 Q2 2022 Maryland Delaware Delaware California 54% 62% 69% 49% Mary
Slide 10: Growth Trajectory & 2022 Catalysts
10 GROWTH TRAJECTORY & 2022 CATALYSTS 46% 45% 140,000 50 43% 45 38% 120,000 40 117,506 27% 100,000 35 77,445 30 80,000 25 CapEx spend on purpose-built 60,000 20 42,885 infrastructure generates returns as 15 CAPEX spend continues to generate 40,000 29,511 29,162 markets come online and assets 10 retu
Slide 11: Priority Growth Markets
11 11 PRIORITY GROWTH MARKETS Columbia Care in New York Columbia Care in New Jersey Columbia Care in Virginia $5B+ $3B+ $3B+ (1) (1) (1) Projected TAM Projected TAM Projected TAM 8 Retail Locations (4 Active, 4 In development) 12 Retail Locations (4 Active, 8 In Development) ~90k sqft Existing Culti
Slide 12: Expansive Retail Operations
12 12 EXPANSIVE RETAIL OPERATIONS (1) Active Retail Locations by Quarter 84 84 90 79 75 73 80 69 67 70 59 60 50 35 34 40 25 18 30 16 13 20 10 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Retail Highlights • Retail revenues increased 4% from Q1 2022• Completed
Slide 13: Cultivation Highlights
13 13 CULTIVATION HIGHLIGHTS 56K+ 693K+ +10g Incremental Sqft Total Planned Sqft Increased Average Yield Added in Q2 2022 Incremental Capacity per Sqft (DWE per harvest) in Q2 Key Cultivation Upgrades & Expansions Market Status Notes Aurora, IL Steele, CO AZ Complete Polycarbonate panels on roof rep
Slide 14: Low-Cost Cultivation, Efficient & Scalable Production
14 14 LOW-COST CULTIVATION, EFFICIENT & SCALABLE PRODUCTION 32 facilities with +2 million sq. ft of cultivation and manufacturing capacity Jurisdiction Facility Count Total Size (sqft) Status Arizona 2 34,800 Operational California 2 81,600 Operational Colorado 6 185,253 Operational Delaware 1 20,00
Slide 15: Financial Highlights
15 15 FINANCIAL HIGHLIGHTS (in US$ thousands) FY 2021A Q3 2021A Q4 2021A Q1 2022A Q2 2022A 2022 Outlook P&L / Cash Flow Revenue 460,080 132,322 139,276 123,087 129,571 Topline: Adj. EBITDA 57,852 24,771 20,592 16,832 12,029 Mid-single digit growth Interest Expense 30,014 8,057 11,314 11,244 11,484 E
Slide 16: Second Quarter 2022 State Highlights
16 16 SECOND QUARTER 2022 STATE HIGHLIGHTS Top 5 Markets by Revenue: California, Colorado, Massachusetts, Pennsylvania, Virginia Top 5 Markets by Adjusted EBITDA: Maryland, Massachusetts, Ohio, Pennsylvania, Virginia Market Commentary • Experiencing high-quality product with exceptional yields and p
Slide 17: Second Quarter 2022 State Highlights
17 17 SECOND QUARTER 2022 STATE HIGHLIGHTS Top 5 Markets by Revenue: California, Colorado, Massachusetts, Pennsylvania, Virginia Top 5 Markets by Adjusted EBITDA: Maryland, Massachusetts, Ohio, Pennsylvania, Virginia Market Commentary • Adult-use sales began on 4/21/22 at two existing dispensaries;
Slide 18: Tempe, AZ
18 Tempe, AZ
Slide 19: Cannabist Expansion
19 CANNABIST EXPANSION Columbia Care’s new retail storefront experience is centered on making shopping simple and approachable for the vast range of experience levels as cannabis use is normalized and legalized across the U.S., with knowledgeable staff and technology-enhanced interaction. 31 Cannabi
Slide 20: Building National Brand and Product Portfolio
20 BUILDING NATIONAL BRAND AND PRODUCT PORTFOLIO Growing our proprietary brand footprint through expanded market penetration and wholesale reach In-house brands accounted for 69% of all flower sold at Columbia Care owned dispensaries in Q2 Wholesale SKU distribution expanded to 14 markets in 2021 Co
Slide 21: Award-Winning Products & Services
21 21 AWARD-WINNING PRODUCTS & SERVICES High Times Cannabis Cup Illinois 2021 st • Hybrid Flower 1 Place: Triple 7, Rainbow Runtz nd • Indica Flower 2 Place: Seed & Strain, Velvet Glove • Pre-Roll 2nd Place: Seed & Strain, Cherry Chem rd • Sativa Flower 3 Place: Triple 7, Tropical Runtz High Times C
Slide 22: Rooted in Land & Harvested by Hand
22 ROOTED IN LAND & HARVESTED BY HAND Upscale yet accessible, Seed & Strain is the most widely distributed brand across the entire portfolio Seed & Strain demonstrated a 28% QoQ increase across all categories and a 4% increase QoQ among all brands of all flower brands sold at Columbia Care affiliate
Slide 23: Triple Seven
23 Our Cannabis is at the uppermost end of the quality spectrum, and our strains are unwavering in consistency. We’ve gone above and beyond the highest industry standards to cultivate the best strains that deliver every time. Our ultra-premium brand has national penetration and is now available in 6
Slide 24: Amplify Today
24 AMPLIFY TODAY Classix is our every day, timeless lifestyle brand that celebrates incredible cannabis moments shared with friends Classix is now available in 14 markets, with additional states expected in 2022. Classix successfully launched in 5 markets (AZ, MA, IL, DE, & NJ), and represented the
Slide 25: Tyson Is Back
25 TYSON IS BACK. Tyson 2.0 is an extraordinary balance of premium and affordable, full-spectrum cannabis flower, concentrates, and consumables available at retailers nationwide. Tyson 2.0 launched with Columbia Care as its exclusive national cultivation and manufacturing partner Tyson 2.0 currently
Slide 26: AMBER
26 Formulations crafted by connoisseurs Vibes crafted by you AMBER is now available in seven markets (AZ, CA, CO, MA, NJ, DE and DC), and accounted for 60% of vape sales and 40% of concentrate sales in Q2 2022 California launched AMBER Diamonds and Live Sauce, two elevated concentrates that will sit
Slide 27: Brand Partnerships
27 BRAND PARTNERSHIPS Launching new product lines and strategic partnerships • Committed to partnering with brands that have built engaged communities and loyal customer bases, we have product lines and strategic partnerships with Pitbull and Mike Tyson, as well as partnerships with the Professional
Slide 28: A Retail Platform Built for Continuous Innovation
28 A RETAIL PLATFORM BUILT FOR CONTINUOUS INNOVATION How do you want to feel today? Technology and efficiency innovation will continue to heighten the in-store and at-home shopping experience at Cannabist and create an all-encompassing ecosystem from home to dispensary and online Forage is our award
Slide 29: Stash Cash App
29 Stash Cash app offers a streamlined shopping experience to build and track loyalty rewards, shop from anywhere and discover new products. Stash Cash has features that allow Earn rewards for enjoying cannabis. The Stash Cash app is a platform for users to set their favorite dispensary and It doesn
Slide 30: Columbia Care
(o Columbia Care