Charlotte's Web Holdings, Inc. · TSX:CWEB
Charlotte's Web — Investor Presentation (June 2019)
20 slides from Charlotte's Web's investor presentation, June 2019
Slide 1: Crafted in Nature. Perfected by Science. Trusted by Families.
CRAFTED IN NATURE. PERFEC TED BY SCIENCE. TRUSTED BY FAMILIES. June 2019 TSX: CWEB | OTCQX: CWBHF
Slide 2: Disclaimers: Forward-Looking Statements
DISCLAIMERS FO RWA R D LO O K I N G STAT E M E 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 ev
Slide 3: Brand Power, Product Quality, Financial Strength
BRAND P RO D U C T FINANCIAL P OW E R Q UA L I T Y ST R E N G T H 3
Slide 4: Charlotte Is Our Inspiration
CHARLOT TE IS OUR INSPIRATION 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 4
Slide 5: How Hemp Works
HOW HEMP WORKS The Company believes that 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 vi
Slide 6: Charlotte's Web Is the #1 Brand in Hemp-Derived CBD Market
CHARLOT TE’S WEB IS CBD MARKET FO RECASTS TH E # 1 BRAND IN THE KEEP INCREASING H EM P - DERIVED CBD 1 M A R KET Annual U.S. Hemp-Derived CBD Retail Sales Estimates: 2019-2023 $7B $6.1B - $7.5B $6B Revenue $5B OUTPACING THE INDUSTRY Total Estimated Retail Sales 69.5 $4.0B - $4.8B WITH REVENUE GROWTH
Slide 7: 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 8: Charlotte's Web Improving Life Naturally
CHARLOT TE'S W EB IMPROVING LIFE NATURALLY A market leader in the production and distribution of 12 Liquid products 4 Capsule products 4 Topical Products 12 Canine Products CBD Isolate innovative hemp-based, CBD wellness products BEST-IN-CLASS INDUSTRIAL HEMP- Strives to improve customers’ lives and
Slide 9: Federal Legalization of Hemp
FEDERAL LEGALIZATION O F HEMP HEMP-DERIVED CBD UNDER FEDERAL LAW COMPLIANCE AND CERTIFICATIONS December 20, 2018 January 2019 2018 Farm Bill Signed into Law1 U.S. Hemp Authority™ Certification • Hemp de-scheduled and permanently removed from • Charlotte's Web certified by the U.S. Hemp Authority™, C
Slide 10: Vertically Integrated Business Model
Vertically integrated business model ensures high-quality, efficacy and consistency DISTRIBUTION MANUFACTURING CULTIVATION 10
Slide 11: Cultivation
CULTIVATION: Advanced technology and customized process Hemp Production 675,000 All figures shown in lbs Significant Cultivation Operations • Over 5 years of experience in hemp plant cultivation • Company operated farms in Colorado and partner farming in Kentucky and Oregon • 100% U.S grown. No reli
Slide 12: Manufacturing
M ANUFAC TUR I N G: Current Good Manufacturing Practices (cGMP) Certified In-House Production • Current: 40,000 ft2 manufacturing and R&D facility • Expansion Plans: Adding 137,000 ft2 manufacturing and R&D facility in 2019 • Proprietary Extraction and Isolation Processes1 • CO2 Extraction and Alcoh
Slide 13: Distribution
D ISTRIBUTION: Sold across the United States Direct to consumer via charlottesweb.com • E-commerce comprised 55% of sales for fiscal year 2018 Sold through over 6,000 retail locations • Active discussions with national retail and distribution accounts Targeting expansion of distribution channels • N
Slide 14: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE All figures shown in millions, US$ Revenue and Growth Gross Profit and Margin Adjusted EBITDA and Margin1 69.5 75% 75% 65% 35% 30% 52.3 14% 21.1 29.9 40.0 14.1 14.7 9.6 2.0 2016 2017 2018 2016 2017 2018 2016 2017 2018 14 (1) Adjusted EBITDA is not recognized measures und
Slide 15: Select Balance Sheet Information
SELEC T BALANCE SHEET INFORMATION All figures shown in millions, US$ DECEMBER 31, 2018 CASH $73.4 WORKING CAPITAL $93.8 CURRENT CURRENT ASSETS $107.9 TOTAL LIABILITIES $17.6 SHAREHOLDER’S EQUITY $121.5 15
Slide 16: Leadership Team
LEAD ERSHIP TEAM Deanie Elsner Rich Mohr Stephen Lermer Eugenio Mendez Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Growth Officer • Forbes 50 Most Influential • Over 25 years of leadership in • 38 years at start-up, mid and large- • Previously, VP Global Marketing -
Slide 17: Board of Directors
BOARD OF DIREC 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 maker
Slide 18: Capitalization and Ownership
CAPITALIZAT ION AND OW NERSHIP SHARE OWNERSHIP CAPITALIZATION May 24, 2019 Founders 39,772,154 26% Basic Common Shares Float Outstanding 38% Proportional Voting Shares 138,332.38 (400:1) (400:1 = 55,332,952) Effective Basic Common Shares 95,105,106 Outstanding Friends & Options & Warrants 11,575,284
Slide 19: Business Summary
BUSINESS SUM M ARY 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 FINANCIAL PERFO
Slide 20: Charlotte's Web Holdings, Inc.
TSX: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 20
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