Slide 1: Management Discussion & Analysis, Year Ended December 31, 2022
ws INTERCURE INTERCURE LTD. Management Discussion & Analysis For the year ended December 31, 2022
Slide 2: Management's Discussion and Analysis of Intercure
Management's Discussion and Analysis of Intercure This Management's Discussion and Anaiysis ("MD&A") is dated March 31, 2023 and provides an analysis of the financial operating results for the year ended December 31, 2022. In this MD&A, references to the “Company,” “intercure,” and “we,” “us,” and “
Slide 3: Forward-Looking Statements
Forward-Looking Statements ‘This MDA may contain forward-Iooking information within the meaning of applicable secures legislation, which reflects Intercure’s current expectations regarding future events, Including statements regarding developments in the Company's operations in fulure periods, adequ
Slide 4: Non-IFRS Measures
Non-IFRS Measures In this MD&A, we use certain non-IFRS financial measures to measure, compare and explain the operating results and financial performance of Intercure. These Measures are commonly used by companies operating in the cannabis industry as useful metrics for measuring performance. Howev
Slide 5: Full Year 2022 Key Financial & Operating Highlights
- > ( Cannabis Sector } Full Year 2022 Key Financial & Operating Highlights + Record fiscal year 2022 revenue of $150 (NIS 389 million) million. + Gross profit of $61 million (NIS 158 million) and gross margin of 41%. + Adjusted EBITDA’ of $32 Million (NIS 84 milion) representing 22% of revenues. +
Slide 6: Fourth Quarter 2022 and Recent Financial & Operating Highlights
Cannabis Sector j Forth Quarter 2022 and Recent Financial & Operating Highlights + Record revenue of $41 million (NS 106 million), 33% growth YoY and 5% @o@. ‘growth, + Gross profit of $14 milion (NIS 37 million), gross margin of 35% dropped from 44% (Q0@) as a result of market conditions. During th
Slide 7: Post-fourth quarter 2022 Highlights
Post-fourth quarter 2022 Highlights + Successfully completed export of our GMP products to Intercure's EU hub, preparing for commercial launches of our products in UK and Germany. + Announced the termination of the Better acquisition agreement, which hos led subsequent lawsuit to recover the funds l
Slide 8: CEO quote on record quarter and fiscal year
“We are pleased to report another record-breaking quarter and fiscal year for InterCure, soliaifying our leading position. As our target markets are evolving, we remain focused on execution with financial discipline while navigating through regulatory barriers and market challenges. During 2022, we
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Slide 10: Quarterly revenues (millions)
Quarterly revenues (millions) ) 1106 BeBe e& &©& o 03-21 Q4-21 Q1-22 Q2-22 Q3-22 O4-22
Slide 11: Revenues (millions)
Revenues (millions) ) 389, 2020 2022
Slide 12: Gross Profit (millions)
Gross Profit (millions) 1159 2022
Slide 13: Operating Profit (millions)
Operating Profit (millions)* mw69 2022 “Connatbis Sector
Slide 14: Net Income (millions)
Net Income (millions) m44 7 2020" 2021 2022 “Changes in the far value of financial assets
Slide 15: Adjusted EBITDA (millions)
Adiusted EBITDA (millions)" 84 2022 “Connatbis Sector
Slide 16: Cash (millions)
Cash (millions) 217 38 27 2019 2020 2021 2022
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Qi-22 2-22 03-22 04 7 13 A 1 1-21 2-21 03-21 O4-21 3-20 04-20
Slide 19: Expanding our leading medical cannabis dispensing pharmacy chain
Expanding our leading medical cannabis dispensins pharmacy chain
Slide 20: Southern Facility
| Southern Facility
Slide 21: New Releases
[ New Releases j
Slide 22: New Releases
New Releases }
Slide 23: Cultivated at the Southern Facility
Cultivated at the Southern Facility
Slide 24: Cookies
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Slide 25: Cultivated at the Southern Facility
Cultivated at the Southern Fax
Slide 26: Cultivated at the Southern Facility
Cultivated at the Southern Facility
Slide 27: Cultivated at the Southern Facility
Cultivated at the Southern Facility — CNo4
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Slide 29: Reconciliation table of financial results
Gross income before impact of changes in fair value 37,484 36,613 Research and development expenses 174 220 Selling and marketing expenses 15,647 8,546 Share-based payment expenses 2,735 1,171 Consolidated operating profit (loss) (3,470 ) 9,050 Interest / Financing cost 5,255 6,495 EBITDA 881 12,258