Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Investor Presentation (June 2020)
23 slides from Charlotte's Web's investor presentation, June 2020
Slide 1: Building a Global CPG Company
BUILDING A GLOBAL CPG COMPANY BRANDS – SCIENCE - QUALITY TSX: CWEB | OTCQX: CWBHF Q2 2020
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: Founded in 2013, Boulder, Colorado
Founded in 2013 Boulder, Colorado C H A R L OT T E ’ S W E B WA S N OT S TA R T E D Charlotte is our true north driving our passion and dedication to the best hemp A S A C O M PA N Y, extracts for product quality, safety and consistency. I T WA S S TA R T E D A S A M I S S I O N What began as her st
Slide 4: #1 Brand in the Total Hemp-Derived CBD Market
#1 BRAND I N T H E CHARLOTTE’S WEB TOTA L H E M P - D E R I V E D ANNUAL REVENUE ($MM) CBD MARKET 1 94.6 OUTPACING THE INDUSTRY WITH 69.5 2019 REVENUE GROWTH OF 36% year-over-year2 40.0 14.7 3 2016 2017 2018 2019 (1) By market share Company estimates (2) Represents 2019 growth over 2018 (3) Charlott
Slide 5: Quarterly Performance – Q1-2020
Quarterly Performance – Q1-2020 30 Q1- 2020 Financial Highlights 4-Yr Quarterly Revenue Growth ($MM) 25 25.1 ➢ Organic consolidated revenue of $21.5 25 22.8 ➢ 70% gross margin 21.7 21.5 21.5 ➢ Adjusted EBITDA loss of $5.7M 20 ➢ $53.0M cash, $114.9M working cap 17.2 17.7 15 Q1- 2020 Business Highligh
Slide 6: Balance Sheet & Capitalization
BALANCE SHEET & CAPITALIZATION BALANCE SHEET MARCH 31, 2020 CAPITALIZATION June 11, 2020 All figures shown in millions, US$ Cash $53.0 Basic Common Shares Outstanding 90,287,521 Working Capital $114.9 Proportional Voting Shares (400:1) 92,455.5775 (400:1 = 36,982,230) Total Assets $190.2 Effective B
Slide 7: Charlotte's Web Advantage Overview
OV E RV I E W CHARLOT TE’S DYNAMIC EVOLVING WEB OPERATING TO SUCCEED ADVANTAGE ENVIRONMENT 7 7
Slide 8: Charlotte's Web Advantage
C H A R LOT T E ’ S W E B A DVA N TAG E 1 . B R A N D ST R E N G T H 2 . V E RT I C A L LY I N T EG R AT E D S U P P LY C H A I N 3 . I N N OVAT I O N , S C I E N C E , SA F E T Y 4 . M A N AG E M E N T T EA M 8
Slide 9: Advantage - Brand Strength
A DVA N TAG E - B R A N D ST R E N G T H CHARLOTTE’S WEB IS #1 IN MARKET SHARE AWARENESS Charlotte’s Web is #1 in awareness Charlotte’s Web is #1 in converting awareness to loyalty SATISFACTION Charlotte’s Web is #1 in satisfaction Charlotte’s Web is #1 in intent to repurchase Charlotte’s Web is #1
Slide 10: Advantage - Vertically Integrated Supply Chain
A DVA N TAG E - V E RT I C A L LY I N T EG R AT E D S U P P LY C H A I N PROPRIETARY GENETICS • Quality, consistency and trust LONG-TERM CULTIVATION • Traceability of ingredient streams PARTNERSHIPS HARVEST & PROCESS • Transparency of the manufacturing process BIOMASS • Grown in the U. S. A. IN-HOUS
Slide 11: Advantage - Innovation
ADVANTAGE - INNOVATION Original Portfolio 3 Gummies – NEW 2019 12 Canine Products – NEW 2019 Note: Product offering as of Q1, 2020 11
Slide 12: Advantage - Legitimizing the Science & Data
A DVA N TAG E – L EG I T I M I Z I N G T H E S C I E N C E & DATA Launched CW Labs - March 2020 • Co-located in the Hauptman Woodward Medical Research Institute in Buffalo, NY and 700 Tech in Boulder, CO • Taps into the SUNY System – 64 Connected Campuses across New York • Developing products using
Slide 13: Advantage - Tested. Certified. Safe.
ADVANTAGE - TESTED. CERTIFIED. SAFE. All Products Tested up to 20 Times • Testing through entire cultivation, extraction and manufacturing to final packaged product • Includes 60-panel toxins test • Batch test results available for every item sold Certified • FDA approved cGMP certified facilities •
Slide 14: Advantage Management Team
Deanie Elsner Russ Hammer David Panter Jared Stanley Tony True Perry Antelman CEO CFO COO CHIEF CULTIVATION CHIEF CUSTOMER PRESIDENT, TOPICALS • Kellogg’s • Caleres Brands • Estée Lauder OFFICER OFFICER • Abacus Health CEO • P&G • ORBITZ INC • Luxottica Retail • PHARMAVITE • Acquired June 2020 • Kra
Slide 15: Dynamic Operating Landscape
DY N A M I C O P E R AT I N G L A N D S C A P E 1 . L AC K O F R EG U L ATO RY C E R TA I N T Y 2 . OV E R - C ROW D E D N AT U R A L R E TA I L C H A N N E L 3 . F D M C H A N N E L D E V E LO P I N G 15 15
Slide 16: Evolving to Succeed
E VO LV I N G TO S U C C E E D 1 . F I L L T H E P O RT FO L I O G A P S 2 . S C A L E T H E P O RT FO L I O 3 . E X PA N D & AU TO M AT E D I ST R I B U T I O N 4 . I N C R EA S E ECO M M E RC E C A PA B I L I T Y 16 16
Slide 17: Evolve – Fill the Portfolio Gaps
E VO LV E – F I L L T H E P O RT FO L I O G A P S Portfolio Gaps Action Launch Trial Sizes 1. Accessible Price Points Price Deal Re-alignment 2. Competitive Price Gaps Launch New Topicals 3. Topical Portfolio Development 17 17
Slide 18: Evolve – Scale Across Channels
E VO LV E – S C A L E AC RO S S C H A N N E L S Acquisition of Abacus June 11, 2020 Synergy Scale Consumer Portfolio Health Care Practitioner Portfolio 11,675 ~21,000 17,548 Doors Unique Doors Doors *Nielsen YTD 2020 18 18
Slide 19: Evolve - Expand & Automate
E VO LV E - E X PA N D & AU TO M AT E In-House Production • New 137,000 sq ft cGMP grade manufacturing and R&D facility • Extraction, production, distribution and R&D expansion • CPG & Ecommerce shipping and distribution • Staged build-out thru 2020 –– Pilot in progress, shipping expected to commenc
Slide 20: Evolve – Increase Ecommerce Capability
E VO LV E – I N C R EA S E ECO M M E RC E C A PA B I L I T Y BUILDING CAPABILITIES • New Technical Platforms • Superior Analytics • Breakthrough Insights • Advantaged Segmentation • Personalized Communication • Rapid Test & Learn KPI’s • Traffic • Conversion • Average Order Value (AOV) • Retention 2
Slide 21: Summary
S U M M A RY • MARKET SHARE LEADER • EXPERIENCED CPG LEADERSHIP TEAM • E V O LV I N G T H E P O R T F O L I O , I N F R A S T R U C T U R E A N D C A PA B I L I T I E S • B A C K E D B Y S C I E N C E A N D D ATA • B E S T P O S I T I O N E D T O N A V I G AT E T H E O P E R AT I N G L A N D S C A P
Slide 22: Charlotte’s Web, Inc. - Confidential
Charlotte’s Web, Inc. - Confidential Information
Slide 23: Charlotte's Web Holdings, Inc.
TSX:CWEB | OTCQX:CWBHF Charlotte’s Web Holdings, Inc. 1600 Pearl Street Boulder, Colorado USA www.charlottesweb.com Cory Pala Director of Investor Relations (720) 484-8930 23 IR@CharlottesWeb.com
Charlotte's Web Holdings — Investor Presentation (June 2020) on 6ix