Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Investor Presentation (March 2019)
20 slides from Charlotte's Web's investor presentation, Mar 18, 2019
Slide 1: Crafted in Nature. Perfected by Science. Trusted by Families.
CRAFTED IN NATURE. PERFECTED BY SCIENCE. TRUSTED BY FAMILIES. Q1 2019 CNSX: CWEB | OTCQX: CWBHF
Slide 2: Disclaimers: Forward-Looking Statements
DISCLAIMERS F O R WA R D LO O K I N G STAT E ME N T S Forward-Looking Information Certain statements contained in this presentation constitute forward-looking statements and forward-looking information (collectively, “forward-looking statements”). Such forward-looking statements relate to possible e
Slide 3: Brand Power, Product Quality, Financial Strength
BRAND P R O D UC T FINANCIAL POWER Q UA L I T Y ST R E N GT H 4
Slide 4: Charlotte Is Our Inspiration
C H A RLOT TE IS O U R INS P IRAT ION In August 2013, CNN aired a documentary featuring Charlotte Figi, whose well- being had significantly improved after the use of the Stanley brothers’ customized extract 5
Slide 5: Why Hemp Works
WHY HEMP WORKS CBD and the 80+ phytocannabinoids in Charlotte’s Web stimulate these receptors and support the function of the ECS. These receptors are located throughout the body. THE ENDOCANNABINOID SYST E M ( EC S ) A physiological system in the body made of a vast and vital receptor network respo
Slide 6: Charlotte's Web Supports Americans with a Variety of Needs
CHARLOT TE’S WEB SUPPORTS AMERICANS WITH A VARIETY OF NEEDS SUPPORT FOR SUPPORT FOR SUPPORT FOR SUPPORT FOR A SENSE EXERCISE INDUCED HEALTHY SLEEP STRESS OF CALM AND FOCUS INFLAMMATION CYCLES 11% or 24.4 Million 52% or 183 Million 30% or 66.7 Million 18 % or 40 Million Americans diagnosed Americans
Slide 7: Charlotte's Web Improving Life Naturally
C H A RLOT TE 'S W E B IMPROVING LIFE NATURALLY A market leader in the production and distribution of 12 Liquid products 4 Capsule products 4 Topical Products 2 Canine Products CBD Isolate innovative hemp-based, CBD wellness products BEST-IN-CLAS S INDUSTRIAL HEMP - Strives to improve customers’ liv
Slide 8: Federal Legalization of Hemp
FE D E R AL L EG A LIZATION O F HEMP HEMP-DERIVED CBD UNDER FEDERAL LAW COMPLIANCE AND CERTIFICATIONS December 20, 2018 January 2019 2018 Farm Bill Signed into Law U.S. Hemp Authority™ Certification • Hemp de-scheduled and permanently removed from • Charlotte's Web certified by the U.S. Hemp Authori
Slide 9: Charlotte's Web Is the #1 Brand in the Increasing Hemp-Derived CBD Market
C H AR LOT T E’ S W E B I S C B D M AR K E T FO R ECASTS T H E # 1 B RA ND I N T HE I N C R EA S I N G H E M P - D ERIVE D C B D 1 M AR K E T Annual U.S. Hemp-Derived CBD Retail Sales Estimates: 2019-2023 $7B $6.1B - $7.5B $6B $5B Total Estimated Retail Sales $4.0B - $4.8B OUTPACING THE INDUSTRY $4B
Slide 10: Vertically Integrated Business Model
Vertically integrated business model ensures high-quality, efficacy and consistency DISTRIBUTION MANUFACTURING CULTIVATION 11
Slide 11: Cultivation
C U LT IVAT ION: Advanced technology and customized process Hemp Production 675,000 All figures shown in lbs Acres of Hemp Planted 2016 2017 2018 45 70 300 Significant Cultivation Operations • Over 5 years of experience in hemp plant cultivation • Company operated farms in Colorado and partner farmi
Slide 12: Manufacturing
MA NU FAC T URI NG: Current Good Manufacturing Practices (cGMP) Certified In-House Production • Current: 40,000 ft2 manufacturing and R&D facility • Future: 130,000 ft2 manufacturing and R&D facility • Proprietary Extraction and Isolation Processes1 • CO2 Extraction and Alcohol Extraction capability
Slide 13: Distribution
D IST RIB UT ION: Sold across the United States Direct to consumer via cwhemp.com • E-commerce sales 55% of revenue first 9-months FY2018 Sold through 3,680 retail locations • Active discussions with national retail and distribution accounts • 2018 Farm Bill removed risk for retail distribution Expa
Slide 14: Strong Financial Performance
ST RO NG FINA NC IAL P E RFO RMANCE All figures shown in millions, US$ Revenue and Growth Gross Profit and Margin Adjusted EBITDA and Margin1 75% 77% 65% 35% 34% 37.1 9 Mos 29.9 14% 48.0 16.2 9 Mos 14.1 9 Mos 40.0 14.7 9.6 2.0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Nine Months Nine Months Nine
Slide 15: Select Balance Sheet Information
S E L EC T BA L A NC E S H E E T INFO RMAT ION All figures shown in millions, US$ SEPTEMBER 3O 2018 CASH $79.4 WORKING CAPITAL $90.2 TOTAL ASSETS $110.4 TOTAL LIABILITIES $14.2 SHAREHOLDER’S EQUITY $96.2 16
Slide 16: Leadership Team
L EA D E RS HIP T EA M Hess Moallem Rich Mohr Stephen Lermer Eugenio Mendez Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Growth Officer • Previously, General Counsel for • Over 25 years of leadership in • 38 years at start-up, mid and large- • Previously, VP Global M
Slide 17: Board of Directors
B OA RD O F D IREC TORS Joel Stanley, Chairman Former CEO of CWB Holdings, Inc. (“CWB”) and Chairman of Charlotte’s Web Holdings, Inc. since 2013 Co-founded CWB with his six brothers, which was incorporated in December 2013 Leading professional in the cannabis industry, actively educating decision m
Slide 18: Capitalization and Ownership
C A P ITALIZAT ION A ND OW NE RS HIP SHARE OWNERSHIP IPO December 31, 2018 CAPITALIZATION Shareholders 19% Stanley Basic Common Shares 21,756,801 Brothers 32% Outstanding Proportional Voting Shares1 178,540.55 (400:1 = 71,416,220) (400:1) Effective Basic Common Shares 93,173,021 Outstanding Options
Slide 19: Business Summary
B U S INES S S U M M A RY LEADING MARKET POSITION in a rapidly growing segment ESTABLISHED AND TRUSTED Charlotte’s Web brand POSITIVE INDUSTRY TRENDS support continued growth CONTINUED INNOVATION to expand market leading product portfolio SCALABLE CULTIVATION AND PRODUCTION platforms STRONG FINANCIA
Slide 20: Charlotte's Web Holdings, Inc.
CSE:CWEB | OTCQX:CWBHF Charlotte’s Web Holdings, Inc. 2425 55th Street Boulder, Colorado USA www.charlottesweb.com Cory Pala Director of Investor Relations (416) 594-3849 IR@CharlottesWeb.com 21
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