Canopy Growth Corporation · TSX:WEED
Canopy Growth — Investor Presentation (October 2019)
20 slides from Canopy Growth's investor presentation, October 2019
Slide 1: Driving the Global Cannabis Industry
DRIVING THE GLOBAL CANNABIS INDUSTRY Canopy Growth Corporation October, 2019
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. $60 NYSE:CGC Capital $3.1B3 Driving Future Growth – $50 Scale 5M+ sq. ft. licensed globall
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 Re-branding Spectrum Therapeutics - Steady Sales and Volume Growth
Slide 6: Driving the Global Cannabis Market
DRIVING THE GLOBAL CANNABIS MARKET Acquired C3 5 cannabinoid therapies Australia Market is Path to enter U.S. 300,000 sq. ft facility in Europe (3 currently in Denmark growing at the fastest THC market with available for sale) global rate1 planned acquisition Certified in good of Acreage Holdings Ma
Slide 7: Early Movers: Strong Positioning for Canadian Rec Market
EARLY MOVERS: STRONG POSITIONING FOR CANADIAN REC MARKET National Supply Structure Distribution Centre Distribution and Launch 7
Slide 8: Physical Retail Critical to Canadian Rec Market
PHYSICAL RETAIL CRITICAL TO CANADIAN REC MARKET 26 Tweed and TS Banner 600+ stores expected to be open Nationwide Sales Team Stores across Canada across Canada, end of FY201 1) According to individual provincial/territorial announcements 8
Slide 9: Canadian Rec Market Share Leadership – Highest At-the-Till
CANADIAN REC MARKET SHARE LEADERSHIP – HIGHEST “AT-THE-TILL” 25% of listings across Canada – highest of all producers, 2X closest competitor1 1) Sources: Bank of America Merrill Lynch Research Note, September 9, 2019 – Based on June 2019 Retail 9
Slide 10: Builders to Operators
BUILDERS TO OPERATORS 41,000 KG Harvested1 New baseline, higher yields expected 1) Q1 FY20 10
Slide 11: Bringing Differentiated Rec 2.0 Products to Market
BRINGING DIFFERENTIATED REC 2.0 PRODUCTS TO MARKET Beverages Vapes Edibles PRODUCT UNVEILINGS FALL 2019 11 11 11
Slide 12: Canada Rec 2.0 – On Track to Begin Production in Fall 2019
CANADA REC. 2.0 – ON TRACK TO BEGIN PRODUCTION IN FALL 2019 Licensing of facilities well underway BOTTLING FACTORY Factory Acceptance Testing of production systems ongoing Installation and qualification of all systems on track for completion by early October 2019 ADVANCED MANUFACTURING BUILDING 12
Slide 13: Tracking to Enter U.S. CBD Market in Q4 FY20
TRACKING TO ENTER U.S. CBD MARKET IN Q4 FY20 • CBD products: health and wellness, skin and beauty, sleep solutions, pet aids • Martha Stewart, Product Advisor • 4,000 acres of low-cost, high-yield hemp planted • Robust contract manufacturing network established • Short-path distillation at subsidiar
Slide 14: Future Entry into World's Largest Cannabis Market
FUTURE ENTRY INTO WORLD’S LARGEST CANNABIS MARKET 88 dispensary licenses across 17 states Planned Acquisition of 24 grow / process licenses across 16 states Acreage Holdings1 Broad cannabis product offering Acreage to Leverage Canopy IP2 Retail Brands / Cultivation & Processing IP / Product IP Creat
Slide 15: Cannabinoid-Based Medical Therapies – Begin with Clinical Research
CANNABINOID-BASED MEDICAL THERAPIES – BEGIN WITH CLINICAL RESEARCH 1000 PATIENTS PARTICIPATING IN HUMAN HEALTH CLINICAL TRIALS 1 60 HUMAN HEALTH CLINICAL TRIALS INCLUDING PHASE IIB SLEEP, PAIN, ANXIETY AND PHASE III SPASTICITY/MULTIPLE SCLEROSIS2 4 ANIMAL HEALTH CLINICAL TRIALS INCLUDING COMPANION A
Slide 16: Think Cannabinoids as an Ingredient in Consumer Products
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$ 80B by 2020, Source – Allied Market Research Animal Health: USD$ 42B in 201
Slide 17: Digging Our Economic Moat
DIGGING OUR ECONOMIC MOAT 110+ PATENTS, 290+ 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 17
Slide 18: Corporate Canada
CANADA CORPORATE Quarterly Positive 40% Gross Margins by Q4 FY20 Adjusted EBITDA by Q4 FY211 $1B Annual Revenue Run Rate by Q4 FY20 Quarterly Positive Adjusted EBITDA by Q4 FY222 Net Income Positive Medium-Term (3 to 5 years) 1) Canadian operations, ex all international market related operating expe
Slide 19: Management Team
MANAGEMENT TEAM Mark Zekulin Rade Kovacevic Mike Lee Dr. Mark Ware CEO President EVP & CFO Chief Medical Officer 19
Slide 20: Management Team
MANAGEMENT TEAM Amanda Daley Hilary Black Peter Popplewell Amy Wasserman VP, Canada Medical Chief Advocacy Officer Chief Technology Officer VP, Brand Marketing & Innovation, Recreational Cannabis 20