Growgeneration Corp. · NASDAQ:GRWG
Growgeneration — ICR Conference 2021
35 slides from Growgeneration's conference presentation, Jan 12, 2021
Slide 1: GrowGeneration ICR Conference 2021 Presentation
Grew Generation IHERE THE PROS GO TO GROW { a, latte PRESENTATION. R Conference 202
Slide 2: Safe Harbor Statement
growgeneration.com SAFE HARBOR STATEMENT This presentation is being provided for information purposes only and does not constitute an offer to sell ora solicitation of an offer to purchase any of the Company’s securities. This presentation is not intended, nor should it be distributed, for advertisi
Slide 3: GrowGeneration at a Glance
growgeneration.com GROWGENERATION AT A GLANCE Founded: 2014, public since 2016 Ticker: GRWG (NASDAQ) Headquarters: Denver, CO FY 2020 Revenue: $192.0M (+140% YoY) 2021 Revenue Guidance: $335M-$350M 2021 EBITDA Guidance: $38M-S40M Total Employees: 435 (as of 1/1/2021) Business Overview = The | hai po
Slide 4: Who We Are & What We Do
growgeneration.com WHO WE ARE & WHAT WE DO Largest eau National Footprint and organ od 39 garden centers in 11 nroductsolutions provider states Diverse Customer Base Full-service product Large commercial multi- Expertise Deep knowledge base solutions from initial state operators, regional, with in-h
Slide 5: Key Performance Executables for 2021-2022
growgeneration.com KEY PERFORMANCE EXECUTABLES FOR 2021-2022 Over 55+ Garden 2020 REVENUE Centers in 2021 $192M up from in 6 new markets $80M in 2019 (ORGANIC GROWTH) CONTINUE SAME GROWTH TRAJECTORY SAME STORE SALES SAME STORE SALES E-COMMERCE SALES UP: FOR Q4 2020 FY 2020 COMMERCIAL SALES ones |g 2
Slide 6: Corporate Divisions
growgeneration.com CORPORATE DIVISIONS GrowGeneration Corp. Commercial GrowGeneration Management Corp. GrowGeneration Distribution GrowGeneration Retail 39 Stores Capital Omni Product Projects Channel Exclusives Corporate Structure
Slide 7: Strategically Located Stores
STRATEGICALLY LOCATED STORES growgeneration.com Large footprint across the US strategically positioned to execute on the large and growing cannabis / hemp and organic markets 6 STATES Targeted immary Stats = GrowGeneration States Targeted for New Markets: Missouri, Illinois, Arizona, Pennsylvania, N
Slide 8: GrowGeneration Locations: Livonia, MI
growgeneration.com GROW GENERATION LOCATIONS: LIVONIA, MI “We love this store. Great customer service! They really saved our business! They have the stuff in stock all the time and prices are pretty decent too. Especially if you’re a member.” “By far the best, the whole staff always goes above and b
Slide 9: GrowGeneration Locations: Tulsa & Oklahoma City, OK
growgeneration.com GROW GENERATION LOCATIONS: TULSA & OKLAHOMA CITY, OK “Fantastic location! Knowledgeable and friendly staff. Huge warehouse, great prices! If something's not stocked, they'll get it for you. Access to a commercial team for your large greenhouse needs.” “Best selection of products w
Slide 10: U.S. Hydroponic Market Size & Landscape
growgeneration.com U.S. HYDROPONIC MARKET SIZE & LANDSCAPE GrowGeneration is poised to expand alongside the large and growing legalized cannabis / hemp and organic markets Hydroponic Market) ($ in b) fo ponte $16.0B $8.1B 2019E 2025E = Over 1,000 hydroponic stores in the U.S. = Specialized hydroponi
Slide 11: U.S. Cannabis Market Overview
growgeneration.com U.S. CANNABIS MARKET OVERVIEW(2) + GROWTH OF LEGAL MEDICAL & RECREATIONAL USE CANNABIS SALES + TOTAL CANNABIS DEMAND FORECAST $30 -— COMPOUND ANNUAL = GROWTH RATE sans $25.23B . [ 14.8% $22.64B po $21.12B $20 [L $19.04B : $16.87B ° © sis LL $14.78B 7 $11.76B @ $10 $8.37B $6.89B $5
Slide 12: Cannabis Driving Hydroponics
Consumer v Robust cannabis category growth driven by perpetuating demographic and regulatory favorability Y Mid to high-single digit growth v Most popular form of consumption is. dried flower (~50% of U.S. sales) best served by indoor production ¥ Category showcased resilience during COVID- 19 even
Slide 13: November 2020 Ballot Referendums: All Successful
growgeneration.com NOVEMBER 2020 BALLOT REFERENDUMS: ALL SUCCESSFUL State Measure(s) Vote Adult Notes Population (21+) Arizona + Proposition 207 - Marijuana Legalization Initiative Adult Use 5.3mm Mississippi + Initiative 65 — Medical Marijuana Amendment Medical Use 2.1mm + Voters first voted yes or
Slide 14: Potential U.S. Federal Cannabis Reform
growgeneration.com POTENTIAL U.S. FEDERAL CANNABIS REFORM Executive Branch | Legislative Branch [ousiciat Branch Full Legalization of Cannabis FDA Guidelines Allow Category to Flourish Full Legalization of Cannabis FDA Creates Onerous Regulations Making FDA Approved Cannabis impractical Complicated
Slide 15: Diverse Customer Base Is Grounded by Commercial Customers
growgeneration.com DIVERSE CUSTOMER BASE IS GROUNDED BY COMMERCIAL CUSTOMERS GrowGeneration serves a diversified customer base mainly composed of commercial customers in the large and growing legalized cannabis / hemp and organic markets Custome erview Commercial Customer Overview = GrowGeneration s
Slide 16: Commercial Revenue Story Drives Predictable, Recurring Sales
growgeneration.com THE COMMERCIAL REVENUE STORY DRIVES PREDICTABLE, RECURRING SALES AND LONG-TERM GROWTH = GrowGeneration supports both commercial growers Consumables and at-home retail growers = Total recurring sales of approximately 60% of overall revenue!) ™ Become dependable supplier for growers
Slide 17: Robust Product Mix Provides Recurring Revenue
growgeneration.com ROBUST PRODUCT MIX PROVIDES RECURRING REVENUE Product % Rev. Description Consumables Nutrients & Addi “27% Premium plant nutrients, supplements and biological amendments Growing Media “14% Organic soil, peat-based, coco, rockwool and stones Wor Garden Tools & Acc. “5% Tools and ap
Slide 18: Big Opportunity in Private Label Products
growgeneration.com BIG OPPORTUNITY IN PRIVATE LABEL PRODUCTS | ea Re I 4 mt peoscem OWERE Beas j c (Of )| ep 720w Exclusively distributed by GrowGeneration WHERE THE PROS GO TO GROW
Slide 19: Brands We Currently Own
growgeneration.com BRANDS WE CURRENTLY OWN: 2021 STRATEGY IS TO GENERATE 10% OF REVENUE TO PRIVATE LABEL OFFERING AT A GREATER THAN 50 BASIS-POINT MARGIN a S&S ereementai ees ey 2. ®@ Hydro a ] 2 Thrive [CP | MixSwire® Steuer Pioneer AY @spet superOstarter x TlTe@Pra NI S @ritavume ViTAA PLANT” sy s
Slide 20: Marketing & Branding
growgeneration.com MARKETING & BRANDING ere YOUR TEAM EXPERTS IN TULSA’ n 1151 South Frankfort Ave G Generation East 12th St & South Frankfort Ave 918-900-2445 roe Cosecction. com OF WHERE THE PROS GO TO GROW
Slide 21: Marketing & Branding
growgeneration.com MARKETING & BRANDING Social Media Vehicle Wraps WHERE THE PROS G0 TO GROW 21)
Slide 22: Interior Branding
growgeneration.com INTERIOR BRANDING Aisle Signs i Sales Counter Banner g Endcap Signs LIGHTING vn fi SE t Wie IYDROPONICS | ORGANICS | GROW suPPLIES WHERE THE PROS GO TO GROW
Slide 23: GrowPro Website
growgeneration.com GROWPRO WEBSITE OMNI CHANNEL APPROACH THAT SEEKS TO PROVIDE CUSTOMERS WITH A SEAMLESS ONLINE SHOPPING EXPERIENCE www.GrowGen.Pro WHERE THE PROS GO TO GROW
Slide 24: Omni Channel - New Website
growgeneration.com OMNI CHANNEL - NEW WEBSITE MULTICHANNEL SALES PLATFORM DRIVING ALL SALES TRAFFIC TO: WWW.GROWGENERATION.COM Key Site Metrics GrewGeneration * 2020 Sales $10M vs $4.8M for 2019 ¢ Unique site visitors: 152,000 per month * Customer Acquisition Cost: $30 + Average Order Amount: $651 *
Slide 25: Financials
growgeneration.com FINANCIALS. WHERE THE PROS GO TO GROW
Slide 26: Key Stats
growgeneration.com KEY STATS" TRADING DATA VALUATION METRICS FINANCIAL HIGHLIGHTS @ (12/31/2020) @ (12/31/2020) (dates as noted) Stock Price ; Adjusted EBITDA, 9/30/2020 $45.32 Enterprise Value $13.4M $2.4 Billion (01/08/2021) $2.62/$48.11 $131M, 9/30/2020 $27.4M, 9/30/20 $112.3M, 9/30/20 52 WEEK LO
Slide 27: Financial Highlights
growgeneration.com FINANCIAL HIGHLIGHTS $ in millions Projected Revenue 4-Wall Economics and Adjusted EBITDA 28.3%, 26.7% ™2019 ™2020 29 2017 2018 2019 = 2020E 2021E sine 3 GandA Adjusted EBITDA 2020 Revenue Q4 2020 Revenue Same Store Sales Same Store Sales $192m $62m +58% +63% 14 New & Acquired +$1
Slide 28: 2020 YTD Revenue Growth
growgeneration.com 2020 YTD REVENUE GROWTH US $ in Millions 152% growth $55,000,000 123% growth 152% $43,500,000 growth $33,000,000 $21,800,000 $19,500,000 $13,100,000 Qi Q2 Q3 ™2019 2020
Slide 29: Store Unit Growth 2017-2020
growgeneration.com STORE UNIT GROWTH 2017-2020 Total Stores 1 Unit Growth Opened 4 rn) 2 5 New & Acquired Consolidated 56 Yo YOY 2019 Store Locations 1 3 in 2020 Acquired WHERE THE PROS GO TO GROW
Slide 30: Same Store Sales
growgeneration.com SAME STORE SALES Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Same Store Sales Samelstore Sales 62% +63% 2020 ar2019 vs 2019 WHERE THE PROS GO TO GROW
Slide 31: Track Record of Acquisitions and New Store Openings
growgeneration.com yu Hydroponics PROVEN ROBUST TRACK RECORD OF ACQUISITIONS AND NEW STORE OPENINGS Hydro epo' GrowGeneration has a proven and robust track record of acquisitions and new store openings =] sion == I SONOMA HYDRO *f ACQUISITIONS Capital Raised Stock: $13.9M a Capital Raised Capital Ra
Slide 32: Acquisitions vs. New Store Opening
growgeneration.com ACQUISITIONS VS. NEW STORE OPENING a) ate — ORGANICS | GROW SUPPLIES HYDROPONICS | « Existing Store Acquisition —- Warwick, RI + New Store Opening Example — — 2019 revenues of $8 million — 10,000 sq. ft. (New OKC location) — Total cost of acquisition, $2.4 million — Racking/fixtur
Slide 33: Experienced Leadership Team and Advisors
growgeneration.com EXPERIENCED LEADERSHIP TEAM AND ADVISORS agement Darren Lampert Michael Salaman Monty Lamirato Tony Sullivan CEO, Director President, Director oo coo = (Pilate Kivestor "National Media Corp. . F dies Environmental Ssenerey «Foot Locker * Lampert & Lampert + American Interactive Me
Slide 34: Analysts Coverage and Consensus
Full Year 2020 Researc! Adjusted Tgt Broker en Date EBITDA |Prev Est] Revenue] Prev Est] Price* Guidance (Low) Guidance (High) Consensus - Factset Consensus - Bloomberg Consensus Stifel Nicolaus Alliance Global Partners Ladenburg Thalmann & Co Lake Street Capital Markets Roth Capital Partners Craig
Slide 35: Contact
growgeneration.com 0064 Grow yGeneratior’ BEL 098am Poiias enver, CO Tel: 800.935.8420 Darren Lampert John Evans Chief Executive Officer Investor Relations darren@growgeneration.com john.evans@growgeneration.com 415-309-0230 WHERE THE PROS GO TO GROW