Canopy Growth Corporation · TSX:WEED
Canopy Growth — Investor Presentation (June 2024)
27 slides from Canopy Growth's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
INVESTOR PRESENTATION June 2024
Slide 2: Disclaimers and Cautionary Statements: Forward-Looking Information (1/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (1/5) This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries, this “Presentation”) contains “forward-looking statements” w
Slide 3: Disclaimers and Cautionary Statements: Forward-Looking Information (2/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (2/5) the Amended Acreage Arrangement (as defined below) and the Floating Share Arrangement , including the occurrence or waiver (at the Company’s discretion) of the occurrence or waiver (at the Company’s discretion) of changes in U.S
Slide 4: Disclaimers and Cautionary Statements: Forward-Looking Information (3/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (3/5) our ability or plans to identify, develop, commercialize or expand our technology and research and development initiatives in cannabinoids, or the success thereof; expectations regarding revenues, expenses and anticipated cash n
Slide 5: Disclaimers and Cautionary Statements: Forward-Looking Information (4/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (4/5) By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclus
Slide 6: Disclaimers and Cautionary Statements: Forward-Looking Information (5/5)
DISCLAIMERS AND CAUTIONARY STATEMENTS Forward-Looking Information (5/5) business strategies, growth opportunities and expected investment; counterparty risks and liquidity risks that may impact our ability to obtain loans and other credit facilities on favorable terms; the potential effects of judic
Slide 7: Disclaimers and Cautionary Statements: Website References
DISCLAIMERS AND CAUTIONARY STATEMENTS Website References References to information included on, or accessible through, websites do not constitute incorporation by reference of the information contained at or available through such websites, and you should not consider such information to be part of
Slide 8: Non-GAAP Measures
NON-GAAP MEASURES “Adjusted EBITDA” is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense)
Slide 9: Canopy Growth: Positioned for sustainable cannabis market leadership
canopy Growth: Positioned for sustainable cannabis market leadership Dedication to unleashing the power of Cannabis centered cannabis in key markets Industry-leading brands and products rooted in Brand & Consumer-led consumer preferences Global reach with A $65B CAD market opportunity by 20271 North
Slide 10: Cannabis centered: Delivering the Benefits of Cannabis to Consumers and Patients Globally
Cannabis centered: Delivering the Benefits of Cannabis to consumers and Patients Globally Canopy is dedicated to being a leader in the cannabis sector with disciplined and measured investment in emerging markets Core Canada: International: Storz & Bickel: Leading Investment Medical + Adult-Use Canna
Slide 11: Global Opportunity: A $65B Cannabis Market Opportunity by 2027
Global Opportunity: A $65b CANNABIS MARKET OPPORTUNITY BY 2027 1 CANADA ADULT-USE + MEDICAL CANNABIS INTERNATIONAL CANNABIS MARKET SIZE U.S. ADULT-USE + MEDICAL CANNABIS MARKET SIZE (2023 TO 2027), $CAD BB1 MARKET SIZE (2023 TO 2027), $CAD BB1 (2023 TO 2027), $CAD BB1 1.2 6.3 6.1 1.0 58.1 54.0 5.9 0
Slide 12: Business Transformation: Significant Improvement in Gross Margins and Reduced Cash Burn in FY2024
BUSINESS TRANSFORMATION: SIGNIFICANT IMPROVEMENT IN GROSS MARGINS AND REDUCED CASH BURN IN FY2024 Results Achieved Consolidated Consolidated Gross Margin Adjusted EBITDA • Completed structural transformation to cannabis- ($CAD’MM) focused, asset-light business in FY2024 30% 27% • Total Cost of Goods
Slide 13: Canada Cannabis: Demand for quality products driving profitable growth
CANADA CANNABIS: Demand for quality products driving profitable growth of Canadian cannabis business • Canadian medical business delivered record revenue and 5th consecutive quarter of revenue growth in Q4 FY2024, increasing 16% year-over-year, driven primarily by larger a larger assortment of canna
Slide 14: International Markets: Strong demand for proven flower strains expected to drive growth
INTERNATIONAL MARKETS: STRONG DEMAND FOR PROVEN FLOWER STRAINS EXPECTED TO DRIVE GROWTH • International Markets cannabis net revenue in Q4 FY2024 increased 32% year-over-year to $11.6 MM driven in part by growth in Germany and Poland • Proven Canada flower strains including Tweed Kush Mintz and Twee
Slide 15: Storz & Bickel: Continuing demand for new Venty portable vaporizer
STORZ & BICKEL ®: CONTINUING DEMAND FOR NEW VENTY PORTABLE VAPORIZER DROVE STRONG SEQUENTIAL REVENUE GROWTH • Storz & Bickel net revenue in Q4 FY2024 increased 43% year-over-year driven by strong sales of the new Venty portable vaporizer. • Strong demand for the Venty portable vaporizer continues, o
Slide 16: Canopy USA: Leading Premium-Focused Brand Powerhouse
Canopy USA 1: Leading Premium-Focused Brand Powerhouse WANA2 - gummies Jetty3 - extracts ACREAGE4 - MSO TERRASCEND5 - MSO An innovative North American Authentic vape experience and Vertical integration from Vertical integration in in PA, NJ, cannabis edibles brand award-winning technology cultivatio
Slide 17: Canopy USA: Capitalizing on once-in-a-generation opportunity
Canopy USA: Capitalizing on once-in-a-generation opportunity >$50B Projected U.S. THC market opportunity in 20261 23 States where Canopy’s Presence in large-scale & rapidly U.S. investments developing adult-use markets currently have a presence 24 Deep network of licensing relationships U.S. states
Slide 18: Q4 & FY2024 Financial Results
Q4 & FY2024 FINANCIAL RESULTS
Slide 19: Q4 FY2024 Key Financial Highlights
Q4 FY2024 KEY FINANCIAL HIGHLIGHTS Canopy delivered Consolidated Net Revenue of $73 MM in (CDN in vs. Q4, which is up 16% compared to Q4 of last year, excluding millions) Q4 FY2024 Q4 FY2023 FY2024 vs. FY2023 businesses divested in FY2024. Net Revenue $72.8 6.7% $297.1 (10.8%) Main drivers of revenu
Slide 20: Revenue Performance by Channel
REVENUE PERFORMANCE BY CHANNEL vs. vs. (in millions of Canadian dollars, unaudited) Q4 FY2024 Q4 FY2023 FY2024 FY2023 Canada Recreational Cannabis Net Revenue $20.8 (4%) $92.4 (3%) Business-to-business1 Canada Medical Cannabis Net Revenue2 $16.3 16% $61.3 10% $37.1 4% $153.7 (18%) International Mark
Slide 21: Gross Margin Performance
GROSS MARGIN PERFORMANCE Gross Margin Year-over-Year Change By Drivers of Q4 FY2024 Reported Segment Consolidated Gross Margin Performance Consolidated Canada Cannabis Gross Margin Gross Margin 21% (+) Improvement in our Canada Cannabis segment, 20% 0% 0% -10% primarily attributable to: -20% -60% •
Slide 22: Free Cash Flow and Debt
FREE CASH FLOW AND DEBT Free Cash Flow1 Total Debt Balance ($CAD’MM) ($CAD’MM) 1,400 1,307 - Q4 FY23 Q4 FY24 1,200 (20) 1,045 (23) 1,000 (40) 800 681 (60) 612 597 600 (80) 400 (100) (99) 200 (120) - Q4FY23 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Free cash flow from continuing operations of R
Slide 23: Appendix
APPENDIX
Slide 24: Adjusted Gross Margin (Non-GAAP) Reconciliation
ADJUSTED GROSS MARGIN1 (NON-GAAP) RECONCILIATION
Slide 25: Adjusted EBITDA (Non-GAAP) Reconciliation
ADJUSTED EBITDA1 (NON-GAAP) RECONCILIATION
Slide 26: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW1 (NON-GAAP) RECONCILIATION
Slide 27: Thank You
THANK YOU 27