Glass House Brands Inc · NEO:GLAS.A.U
Glass House Brands — Q4 2021 Earnings Presentation
22 slides from Glass House Brands's earnings presentation, Apr 4, 2022
Slide 1: Q4 2021 Investor Presentation
NEO: GLAS.A.U OTCQX: GLAS.F Q4 2021 INVESTOR PRESENTATION v1
Slide 2: Disclaimers
DISCLAIMERS Cautionary Statements This document is for information purposes only and should not be considered a recommendation to purchase, sell or hold a security. This presentation has been prepared for discussion purposes only and is not , and in no circumstances is to be construed as an advertis
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS LARGEST CULTIVATION A BRAND-BUILDING MACHINE IN CALL OPTION ON INTERSTATE FOOTPRINT, UNMATCHED THE #1 US MARKET COMMERCE CAPACITY CRAFT CANNABIS AT SCALE AND STRONGLY POSITIONED TO UP TO 6M SQ. FT. OF BEST-IN- PREDICTABLE SUPPLY CAPABILITY CARRY LEADING MARKET SHARE CLASS CULTI
Slide 4: Glass House Brands
GLASS HOUSE BRANDS #1 CANNABIS COMPANY MISSION B E C O M E T H E L A R G E S T A N D M O S T IN THE P R O F I TA B L E V E R T I C A L LY- I N T E G R AT E D C A N N A B I S C O M PA N Y I N C A L I F O R N I A , D E L I V E R I N G B R A N D S T O C O N S U M E R S #1 A C R O S S A L L S E G M E N
Slide 5: The Vertical Advantage
THE VERTICAL ADVANTAGE Increased cultivation utilization Increased wholesale NEW DISPENSARIES CPG Increased brand sales Owned stores 5
Slide 6: California: High Growth & Consolidation Potential
CALIFORNIA: HIGH GROWTH & CONSOLIDATION POTENTIAL 31M 280M >8,500 A D U LT S TOURISTS C U LT I VATO R S >1,000 >1,250 >1,600 DISTRIBUTORS RETAILERS1 BRANDS 1 Source: California Department of Cannabis Control Website. There are 907 active retail licenses and 389 active delivery licenses. 6
Slide 7: California: Largest Single US Cannabis Market
CALIFORNIA: LARGEST SINGLE US CANNABIS MARKET 2026e 7.0 T H E L E G A L M A R K E T I N T H E I L L E G A L M A R K E T I N Market Size C A L I F O R N I A I S M O R E C A L I F O R N I A I S A T L E A S T 2 X - Projection T H A N T W I C E T H E S I Z E 3 X T H E S I Z E O F T H E L E G A L (Legal,
Slide 8: Unmatched Capacity and Expanding Retail Footprint
UNMATCHED CAPACITY AND EXPANDING RETAIL FOOTPRINT Eureka Cultivation facility EXPANDING RETAIL FOOTPRINT Manufacturing • 3 new retail locations Existing Retail (4) New Retail (3) 1 • 2 new GHB licenses (Isla Vista and Santa Berkeley Ynez) and 1 acquired from Element 7 (Eureka)1, 3 • After further re
Slide 9: Operations: The SoCal Greenhouse - Unmatched Capacity
OPERATIONS: THE SOCAL GREENHOUSE-UNMATCHED CAPACITY 5 . 5 M S Q . F T. O F H I G H -T E C H , B E S T- I N - C L A S S , C O N T R O L L E D - E N V I R O N M E N T G R E E N H O U S E S 2 0 A C R E S O F S U P P L E M E N TA L L I G H T: I N D O O R Q U A L I T Y AT C L O S E -T O - O U T D O O R C
Slide 10: Operations: Expanding Footprint, New Unmatched Capacity
OPERATIONS:EXPANDING FOOTPRINT NEW, UNMATCHED CAPACITY • 165-acre property in Southern California (SoCAL) SoCAL 2023-2024 3.8M SQ. FT • Planned 5.5M sq. ft. of cultivation across 6 state-of-the-art greenhouses to be built out in 3 Phases. • 1.7M dry pounds of cannabis per SoCAL 2022 2.1M SQ. FT annu
Slide 11: Operations: Unmatched Cost Structure
OPERATIONS: UNMATCHED COST STRUCTURE PRO FORMA WHOLESALE BIOMASS ECONOMICS1 2021 Cultivation Pro Forma Cost ($ per lb) SoCAL Cultivation Pro Forma Cost ($ per lb) 900 900 Proforma 63% 49% 3% 74% 64% 32% gross profit 800 800 margin6 700 700 600 600 Cultivation Cost (3) $ Weighted 490 Cultivation Tax
Slide 12: Retail and Distribution
RETAIL AND DISTRIBUTION DELIVERY THE FARMACY – SANTA ANA 11 coolest dispensaries - VenueReport THE FARMACY SANTA YNEZ1,3 THE FARMACY ISLA VISTA1,3 THE FARMACY EUREKA1,3 THE FARMACY – SANTA BARBARA THE POTTERY – LOS ANGELES 2 THE FARMACY – BERKELEY Voted best local dispensary 2020 and 2021 Listed in
Slide 13: Brands: #1 Flower Dollar Share in California
BRANDS: #1 FLOWER DOLLAR SHARE IN CALIFORNIA IN LESS THAN 20 MONTHS, OUR FIRST BRAND REACHED #1 FLOWER RANK AND DEMONSTRATED STEADINESS IN A VOLATILE AND VERY COMPETITIVE MARKET 4.5% #1 4.0% #1 3.5% #2 3.0% #3 % Market Share of #6 #3 2.5% Flower Segment, 2.0% # 16 by $ 1.5% 1.0% # 63 0.5% 0.0% 20 20
Slide 14: Strong Brands Across All Segments
STRONG BRANDS ACROSS ALL SEGMENTS EXISTING BRANDS COVER 70% OF CANNABIS CATEGORIES G O O D . H O N E S T . C A N N A B I S . 14
Slide 15: PLUS Acquisition: Entry into Edibles Segment
PLUS ACQUISITION: ENTRY INTO EDIBLES SEGMENT GLASS HOUSE BRANDS TO BECOME THE ONLY CALIFORNIA COMPANY WITH A TOP 5 POSITION IN BOTH FLOWER AND EDIBLES • PLUS was the No. 4 ranked edibles brand in California by sales in Q4 20211 • Potential $14M in incremental annual revenue, based on PLUS 2021 run r
Slide 16: ESG as a Strategic and Competitive Advantage
ESG AS A STRATEGIC AND COMPETITIVE ADVANTAGE • STRATEGICALLY LOCATED IN CALIFORNIA, WHERE GROWING CONDITIONS ARE OPTIMAL • FOCUS ON ENERGY EFFICIENCY WITH SOLAR AND COGENERATION CAPABILITIES • ESG MANDATED U.S. AUM ARE FORECAST TO REACH $53 TRILLION BY 20251 Kg CO2 per kg Flower2 kWh per Sq. Ft. of
Slide 17: Meet the Glass House Team
MEET THE GLASS HOUSE TEAM KYLE KAZAN GRAHAM FARRAR MARK VENDETTI DARYL KATO ERIK THORESEN Co-founder, Chairman & CEO Co-founder, President & Board Director Chief Financial Officer Chief Operating Officer Chief Business Development Officer JOHN BEN JACQUELINE FRANCESCA JAMIN JENNIFER GERRIT BREBECK V
Slide 18: Cap Table (Year-End 2021)
CAP TABLE (YEAR-END 2021) NUMBER REFERENCE PRICE NOTES Securities Subordinate voting shares (SVSs) 56,820,189 Restricted stock units 3,230,948 Stock options 2,087,784 $2.78 Assumed warrants1 28,489,500 $11.50 SVSs issuable; June 29, 2026 expiry Issued warrants 4,928,578 $10.00 SVSs issuable; June 29
Slide 19: Appendix
Wy GLASS HOUSE BRANDS APPENDIX
Slide 20: Board of Directors
BOARD OF DIRECTORS KYLE KAZAN GRAHAM FARRAR • Co-founder, Chairman & CEO of Glass House Group • Co-founder, President & Board Director of Glass House Group • 30+ years of successful Private Equity & investment experience with focus on real estate • 20+ years of serial entrepreneurship, including tak
Slide 21: Board of Directors (Cont'd)
BOARD OF DIRECTORS (CONT’D) JOCELYN ROSENWALD HECTOR DE LA TORRE • Co-founder and Board Director of Glass House Group • Member of California State Assembly representing L.A. 2004-2010; member of • Veteran of real estate investment industry; most recently, successfully managed $500M South Gate City C
Slide 22: NEO: GLAS.A.U OTCQX: GLAS.F
Wy GLASS HOUSE BRANDS OTCQX: GLAS.F