Slide 1: Aphria + Tilray: Combine to Create Global Cannabis Company
LRAY COMBINE GLOBAL CANNABIS COMPANY | | | | | | | |
Slide 2: Disclaimer: Cautionary Note Regarding Forward-Looking Statements
DISCLAIMER CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securit
Slide 3: Aphria + Tilray: A Global Cannabis Leader
A P H R I A + T I L R A Y : A GLOBAL CANNABIS LEADER ✓ Combines two highly complementary businesses to create a leading Cannabis-focused CPG company, and the largest globally by revenue ✓ Strengthens leadership position in Canada, with complete portfolio of product offerings and carefully curated br
Slide 4: Aphria + Tilray: Transaction Overview
A P H R I A + T I L R A Y : TRANSACTION OVERVIEW â–ª Stock-for-stock combination, which takes the form of a reverse acquisition executed by way of Plan of Arrangement under the Business Corporations Act (Ontario) Structure â–ª Aphria shareholders to receive 0.8381 shares of Tilray for each Aphria sh
Slide 5: Aphria + Tilray: Largest Global Cannabis Company by Revenue
A P H R I A + T I L R A Y : LARGEST GLOBAL CANNABIS COMPANY BY REVENUE LTM Revenue (CAD$ Millions) (1) $900 $874 (2)(3) (2)(4) $842 $800 $700 (2)(5) $600 $602 $581 (2) $500 $477 (2) $441 $400 $300 (2)(6) $268 $261 (2) $255 $200 $96 $87 $100 $0 + Sources: Public filings. Note: Showing select Canadian
Slide 6: Well Positioned in All Large Cannabis Markets Globally: Leadership in Canada
W E L L P O S I T I O N E D I N A L L L A R G E C A N N A B I S M A R K E T S G L O B A L L Y LEADERSHIP IN CANADA Leading Brands and Distribution Creates a leading player A Comprehensive in Canada’s C$3.1bn Cannabis 2.0 (US$2.4bn) adult-use, Product Portfolio retail market (1)(2), by combining bran
Slide 7: Aphria + Tilray: Leading Adult-Use Position in Canada
A P H R I A + T I L R A Y : LEADING ADULT-USE POSITION IN CANADA LTM Adult-Use Cannabis Gross Revenue (CAD$ Millions) $350 $296 (1) $300 $250 $245 $200 $172 $150 $126 $100 (1)(2)(3) $80 $74 $47 (1)(4) $50 $43 $0 + Sources: Public filings. (1) Converted using 0.7835 CAD/USD exchange ratio as of 12/11
Slide 8: Complete Product Offering for Consumers
W E L L P O S I T I O N E D I N A L L L A R G E C A N N A B I S M A R K E T S G L O B A L L Y COMPLETE PRODUCT OFFERING FOR CONSUMERS Flower / Pre-Rolls Premium Plus Oils / Capsules Vape Flower / Pre-Rolls Premium Oils / Capsules Vape Flower / Pre-Rolls Oils / Capsules Core Vape Edible Beverage Econ
Slide 9: Farm to Pharmacy in EMEA
W E L L P O S I T I O N E D I N A L L L A R G E C A N N A B I S M A R K E T S G L O B A L L Y FARM TO PHARMACY IN EMEA Tilray’s European leadership combined with Aphria’s German footprint creates an unrivaled European platform European market size of ~US$3.9bn by 2025 (1) Current Market Presence Cur
Slide 10: Strong CPG Presence and Infrastructure in the U.S.
W E L L P O S I T I O N E D I N A L L L A R G E C A N N A B I S M A R K E T S G L O B A L L Y STRONG CPG PRESENCE AND INFRASTRUCTURE IN THE U.S. U.S. EXPANSION BASED ON TWO STRATEGIC PILLARS: Branded Cannabis Lifestyle Company U.S. Hemp and Wellness Platform ✓ Pioneer in branded hemp and CBD product
Slide 11: Aphria + Tilray: Industry Leading Profitability
A P H R I A + T I L R A Y : INDUSTRY LEADING PROFITABILITY ✓ Aphria has generated positive adjusted EBITDA over the last 6 quarters, providing a robust platform for future profitability and cash flow generation for the Combined Company Aphria and SweetWater Pro Forma Adjusted EBITDA (C$ Millions) (1
Slide 12: Meaningful Cost Synergies with Additional Upside
A P H R I A + T I L R A Y : MEANINGFUL COST SYNERGIES WITH ADDITIONAL UPSIDE • Consolidation of cultivation and production infrastructure in Canada and Europe Cultivation & Production • Aphria to supply Cannabis volumes currently outsourced by Tilray Potential Cost Synergies Sales and marketing • Sa
Slide 13: Aphria + Tilray: Pro Forma Capitalization
A P H R I A + T I L R A Y : PRO FORMA CAPITALIZATION Pro Forma Capital Structure Strategy Pro Forma Key Financials (1)(2) CAD USD ✓ Deleverage through growth and cash flow Cash $579 $454 ✓ Committed to conservative leverage profile Secured Debt $356 $279 ✓ No near-term maturities Convertible Notes $
Slide 14: Leadership Team with Extensive CPG and Operational Experience
A P H R I A + T I L R A Y : LEADERSHIP TEAM WITH EXTENSIVE CPG AND OPERATIONAL EXPERIENCE Name Title Prior Experience Name Title Prior Experience Irwin D. Chief Executive Officer, Simon Chairman of the Board Brendan Chief Executive Officer Kennedy Carl Chief Financial Officer Merton Michael Chief Fi
Slide 15: Aphria + Tilray: The Right Combination to Lead Global Cannabis
A P H R I A + T I L R A Y : THE RIGHT COMBINATION TO LEAD GLOBAL CANNABIS Leadership in Adult-Use throughout Canada Industry leading capabilities in beverage Adult-Use leadership in Canada with highly recognizable brands and edibles Lowest cost production across State-of-the-art GMP certified Portug