Decibel Cannabis Company Inc · TSXV:DB
Decibel Cannabis — Q3 2024 Earnings Presentation
20 slides from Decibel Cannabis's earnings presentation, Nov 20, 2024
Slide 1: Investor Presentation Fall 2024
INVESTOR PRESENTATION FALL 2024 TSXV: DB | OTCQB: DBCCF
Slide 2: General Disclaimer
GENERAL DISCLAIMER This corporate presentation dated November 20, 2024 (the “Presentation”) has been prepared by management of Decibel Cannabis Company Inc. (the “Corporation” or “Decibel”) and is based on public information. This Presentation does not constitute an offer to sell to any person, or a
Slide 3: Preliminary Financial Information and Non-GAAP Cautionary Statement
PRELIMINARY FINANCIAL INFORMATION The Corporation's expectations for its 2025 Proforma net revenue, adjusted EBITDA and deployable cash flow results (see “Cautionary Statement Regarding Certain Non-GAAP Measures” below) are based on, among other things, the Corporation's anticipated financial result
Slide 4: Decibel at a Glance
DECIBEL AT A GLANCE… TM TM TM TM (C$MM) NET REVENUE ~52% CAGR(1) ADJ. EBITDA ~157% CAGR(1) ADJ. FREE CASH FLOW(1) DEBT TO EBITDA(1) Domestic Segment ~85% International Segment ~15% of Net Revenue of Net Revenue Market share rank Leading brands Sales product mix Sales presence in EU GMP certification
Slide 5: AgMedica Acquisition Summary
AGMEDICA ACQUISITION SUMMARY Accretive transaction e pands Decibel’s international reach and vape market access Transaction Summary • $6.3MM interest free convertible note to purchase business, converting to equity on shareholder approval (21.9% PF ownership)(1) • Shed non-desirable assets and all l
Slide 6: 2025 Pro Forma Full Year Expectations
2025 PRO FORMA FULL YEAR EXPECTATIONS 1 Net Revenue of $130MM driven by continued international growth 2 Adjusted EBITDA of $25MM with a continued cost focus and implementation of automation 3 Adjusted Free Cash Flow of $20MM to continue strengthening of our balance sheet and investing in growth 4 D
Slide 7: Transaction Highlights
DECIBEL B CANNABIS moms COMPANY TRANSACTION HIGHLIGHTS
Slide 8: AgMedica Overview
AGMEDICA OVERVIEW AgMedica is an EU GMP cultivator and processor providing high potential international opportunities Growing demand for existing products in markets $30MM(1) $4MM(3) with high regulatory barriers to entry 2025E Revenue Contribution 2025E Adjusted EBITDA Contribution Existing supply
Slide 9: Pro Forma Business Overview
PRO FORMA BUSINESS OVERVIEW AgMedica materially accelerates Decibel’s international presence and positions for further growth 64% 36% 9.0 5.1 14.1 12.2TPA Flower Production(1) TPA TPA TPA of harvest material GACP or EU GMP certified for international markets Geographical Exposure Facilities Capabili
Slide 10: Global Demand for Cannabis Imports Has Grown Substantially
GLOBAL DEMAND FOR CANNABIS IMPORTS HAS GROWN SUBSTANTIALLY Growth as seen in Australia, United Kingdom, and Germany is expected in other nascent markets Cannabis Imports by Select Countries Nascent Legal Cannabis Markets Metric tons per annum (TPA) 45 Australia (1) 4 United 5 Kingdom (2) Germany(3)
Slide 11: Decibel
DECIBEL B CANNABIS moms COMPANY DECIBEL
Slide 12: Geographic Snapshot
GEOGRAPHIC SNAPSHOT Stable domestic free cash flowing segment coupled with high growth international 15% Domestic Segment International Segment • Historical 50% Net Revenue CAGR over 4-year period • Emerging fast growing segment • 16 consecutive periods with positive EBITDA • Favourable price enviro
Slide 13: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE Demonstrating continued growth coupled with industry leading margins Net Revenue and Adj. EBITDA Margin Adjusted EBITDA (C$MM | %) (C$MM) (1) M M Note: Adjusted EBITDA is a non-GAAP financial measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” an
Slide 14: Leading Performance on Key Metrics
LEADING PERFORMANCE ON KEY METRICS Decibel has demonstrated leading capital efficiency with scale among Canadian LPs Balanced Approach to Scale and Optimizing Gross Margin with Strong Return on Capital Profitability Sharp Cost Focus Employed(1) Net Revenue and Adj. EBITDA (C$MM) LTM Gross Margin (%)
Slide 15: Corporate and Financial Information
CORPORATE AND FINANCIAL INFORMATION Strengthening our position through growth to capitalize on opportunities created by industry challenges Capital Structure Debt to EBITDA Capital Strategy Units in millions except per share values (x) Equity Common Shares (1) 442.5 Targeting Adjusted Free Cash Flow
Slide 16: Appendix
DECIBEL B CANNABIS moms COMPANY APPENDIX
Slide 17: Executive Team
EXECUTIVE TEAM Best-in-class team with a demonstrated track record of driving superior return on invested capital Ben Sze Stuart Boucher Adam Coates Chief Executive Officer Chief Financial Officer Chief Revenue Officer ▪ Responsible for the merger ▪ Strategist in positioning Decibel’s ▪ Drove Decibe
Slide 18: Board of Directors
BOARD OF DIRECTORS Best-in-class team with a demonstrated track record of driving superior return on invested capital Shawn Dym Nadia Vattovaz Jakob Ripshtein Director Director, Audit Chair Director, Governance Chair ▪ Early investor and strategic thought leader in the ▪ CFO & Head of Logistics for
Slide 19: Exhibit A: Non-GAAP Financial Measures Quantitative Reconciliations
EXHIBIT A NON-GAAP FINANCIAL MEASURES – QUANTITATIVE RECONCILIATIONS Adjusted EBITDA Reconciliation Adjusted Free Cash Flow Reconciliation (C ’ ) (C$MM) Three Months Ended September 30, Three Months Ended September 30, 2024 2023 2024 2023 Net income (loss) and comprehensive income (loss) ($585) $413
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