Curaleaf Holdings, Inc. · TSX:CURA
Curaleaf — Investor Presentation (December 2020)
36 slides from Curaleaf's investor presentation, December 2020
Slide 1: Curaleaf Investor's Presentation December 2020
CURALEAF INVESTOR’S PRESENTATION December 2020
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Cautionary Note Regarding Forward-Looking Statements and Future-Oriented Financial Information This presentation contains “forward-looking information” and “forward-looking statements” within the meaning of the Canadian securities laws and the United States Private Securities Litigation R
Slide 3: Disclaimer: Cannabis-Related Activities Illegal Under U.S. Federal Law
DISCLAIMER Cannabis-Related Practices or Activities are Illegal Under U.S. Federal Laws Curaleaf derives 100% of its revenues from doing business in the cannabis industry in the U.S.. The concepts of “medical cannabis” and “adult-use cannabis” do not exist under U.S. federal law. The U.S. Federal Co
Slide 4: Disclaimer: Non-IFRS Financial Measures
DISCLAIMER Non-IFRS Financial Measures In this presentation, Curaleaf refers to certain non-IFRS financial measures such as Pro Forma Revenue (“PF Revenue”), Managed Revenue, Gross Profit on Cannabis Sales and Adjusted EBITDA (“AEBITDA”). These measures do not have any standardized meaning prescribe
Slide 5: Company Overview
COMPANY OVERVIEW curcheat
Slide 6: Vision, Mission and Values
To be the world’s leading cannabis company by leading the world in cannabis education, accessibility and customer satisfaction with high-quality products backed by science. Our . Mission To improve lives by providing clarity around cannabis and confidence around consumption. curdleaf Our Values Pass
Slide 7: Pioneering Cannabis Since 2010: Company Milestones
PIONEERING CANNABIS SINCE 2010: COMPANY MILESTONES • Completed the acquisition of Acres in • Established NV partnerships in • Won a medical retail license in UT MA and ME • Closed $300M senior term loan • Received a • Acquired facility vertically vertically • Awarded clinical registrant license in i
Slide 8: Considerable Market Growth
CONSIDERABLE MARKET GROWTH • While the U.S. legal cannabis industry is projected to total (1) (1) LEGAL U.S. CANNABIS MARKET $16.3B $16.3B in 2020, total cannabis demand in the U.S. is (2) 40 in 2020 estimated to total $75B-$100B , including markets serviced 33.9 35 2 , 2 6by0 the , 0 0illicit 0 +ma
Slide 9: Strategy Summary
STRATEGY SUMMARY INCREASED B U I L D I N G N AT I O N A L VERTICAL FOCUS ON CORE, BRANDS THROUGH I N T E G R AT I O N S TA B L E , COAST -TO- COAST THROUGH MEDICAL-USE ROLLOUT OF CONTINUED REVENUE WELLNESS AND INVESTMENT G E N E R AT I O N LIFESTYLE PRODUCTS I N C U LT I VAT I O N A N D PROCESSING E
Slide 10: Core, Stable Medical Revenue
CORE, STABLE MEDICAL REVENUE MEDICAL REVENUES CONTINUE TO PROVIDE A C U R A L E A F ’ S M E D I C A L C A N N A B I S B U S I N E S S F E AT U R E S S TA B L E B A S E E V E N A F T E R A S TAT E B E G I N S S T R O N G , P R E D I C TA B L E R E V E N U E S A D U LT - U S E S A L E S 1,150+ ($ in m
Slide 11: Brands Spanning Medical & Adult-Use Segments
BRANDS SPANNING MEDICAL & ADULT-USE SEGMENTS W E L L N ES S L I F EST Y L E 2,260,000+ 170,000+ 0+ 23 30+ 20+ 11
Slide 12: Continued Investment in Vertical Integration Unlocks Value
CONTINUED INVESTMENT IN VERTICAL INTEGRATION UNLOCKS VALUE VERTICAL MODEL: C U R A L E A F & G R A S S R O OT S + WHOLESALE MODEL: CURALEAF & SELECT = I N T E G R AT E D M O D E L 2,260,000+ 170,000+ 1,150+ 0+ OWNED DISTRIBUTION OWNED DISTRIBUTION R E TA I L NETWORK R E TA I L NETWORK PROCESS PROCES
Slide 13: Retail Channel & Wholesale Access
RETAIL CHANNEL & WHOLESALE ACCESS CURALEAF & GRASSROOTS RETAIL CURALEAF & SELECT WHOLESALE 2,260,000+ 170,000+ 1,150+ 0+ 23 196,600,000+ 30+ 20+ 96 (1) 135+ (1) DISTRIBUTE TO 1,300+ STORES STORES STORES P LU G + P L AY G R O W T H B O O S T 13 (1) Certain entities are subject to option agreements, s
Slide 14: Our Response to COVID-19
OUR RESPONSE TO COVID-19 • We have received an “Essential Services” designation in all markets, allowing the company to continue to meet the needs of its customers • We have been hiring in a variety of positions and working closely with local organizations to provide job opportunities to those who a
Slide 15: Why Curaleaf?
WHY CURALEAF? Company Breakdown
Slide 16: One of the Most Well Capitalized U.S. Cannabis Companies
ONE OF THE MOST WELL CAPITALIZED AND FINANCIALLY STABLE U.S. CANNABIS COMPANIES • Executed a non-dilutive $300M debt raise in • 6 consecutive quarters of positive AEBITDA, with January of 2020, raising net proceeds of $42.3M of AEBITDA in 3Q20, representing over (1) $185.7M 160% of FY2019 AEBITDA •
Slide 17: Clear Industry Leader
(1) CLEAR INDUSTRY LEADER 2,000,000+ 200,000+ 1,400+ 96 s q . f t . o f c u l t i vati on p at i e nts s e r ve d a n d a c t i ve wh o l e s a le reta i l l o cat ion s ca p ac i ty g ro wing d i s p ens ar y a c co unt s i n o p erati on 23 192,100,000+ 30+ 23 states wi t h a d d re ssab le p ro c
Slide 18: Prudent Acquisitive Growth
(1) PRUDENT ACQUISITIVE GROWTH • One of the most successful acquirors of cannabis assets; we have completed every acquisition we have announced • Our focus on return on invested capital brings discipline to acquisitions` 2019 - YTD 2020 Acquisitions (Facilities) • Since our public offering in Octobe
Slide 19: Unparalleled Coast-to-Coast Footprint
UNPARALLELED COAST-TO-COAST FOOTPRINT ( 1 ) COMBINED COMPANY HAS A STRONG PRESENCE IN 23 STATES OREGON NORTH DAKOTA MICHIGAN NEW YORK VERMONT MAINE #2 vape market share(4) #1 market share(5) Vertically integrated #1 market share(5) #1 market share(5) #2 market share(5) Vertically integrated 1 of 2 c
Slide 20: Operations Overview
(1) OPERATIONS OVERVIEW Dispensaries Production Licenses(2) Cultivation Facility SF Cultivation Highlights Licenses Operating YE2020 Processing Cultivation YE2019 YE2020 1 Arizona 9 8 8 Y Y 119,500 119,500 2x canopy SF increase in Q1 '20, further 2x increase by Q2 '21 2 Arkansas 1 1 1 3 California Y
Slide 21: Select's Current and Future Presence
SELECT’S CURRENT AND FUTURE PRESENCE VT ND ME • Select is already a leading ME OR OR wholesaler of cannabis on the NY West Coast MI MI MA PA OH CT • Select has recently launched in NV IL CA UT UT Colorado, Connecticut, Florida, CA CO CO NJ CO MO Illinois, Maine, Maryland, MD Massachusetts, Michigan,
Slide 22: Curaleaf Key Markets Overview
CURALEAF KEY MARKETS OVERVIEW ($ in millions) # of Curaleaf # of Dispensary Cultivation Capacity Ranking Market 2019 Legal Market 2025 Legal Market State (4) (4) CAGR%(4) Dispensaries Licenses (in square feet) Share(3) Size Size Projection Arizona 8 9 120,000 2 $ 714 $ 1,547 13.8% Florida 33 Unlimit
Slide 23: Grassroots U.S. Expansion and Market Diversification
(1) GRASSROOTS U.S. EXPANSION AND MARKET DIVERSIFICATION • Formally closed on July 23 with a consideration of 116.3M SVS shares VT ND • Adds 55 dispensary licenses and 250,000 square feet of cultivation to Curaleaf’s industry-leading MI footprint CT PA NV OH • Curaleaf gains entry and leading IL mar
Slide 24: Summing the Parts
(1) SUMMING THE PARTS (2) S T AT E S 18 13 23 (2) T O TA L P O P U L AT I O N ~169M ~82M ~192M (2) 2 0 2 0 R E TA I L C A N N A B I S $14.0B (3) $13.3B $5.0B R E P R E S E N T S O V E R 8 5 % O F T O TA L MARKET U . S . R E TA I L M A R K E T DISPENSARY (4) 81 55 136 LICENSES ACTIVE (4) 64 32 96 L O
Slide 25: Largest U.S. Cannabis Company
LARGEST U.S. CANNABIS COMPANY Curaleaf is already the industry leader, the Grassroots transaction further separates Curaleaf from the pack 250.0 $165.4 Pro (2) Forma (1) 215.3 Pro- 3020 Q2 Reported Revenue (US$, M) (2) 200.0 Forma 150.0 100.0 (3) 193.2 157.1 153.3 136.3 50.0 61.6 48.7 (4) 39.4 0.0 (
Slide 26: Strong, Experienced Curaleaf Management Team
STRONG, EXPERIENCED CURALEAF MANAGEMENT TEAM 2,260,000+ 170,000+ 1,150+ 0+ Joseph Lusardi Joseph Bayern Neil Davidson Michael Carlotti Jason White Cameron Forni Boris Jordan Executive President of Select Chairman CEO President COO CFO CMO of the Board Investor in cannabis Over 9 years Over 20 years
Slide 27: Why Curaleaf? Why Now?
WHY CURALEAF? WHY NOW? WELL-CAPITALIZED 6 consecutive quarters of positive AEBITDA coupled with one of the strongest balance sheets in the sector; ample cash to fund business for future growth SCALE Through acquisitive and organic growth, we have established the largest footprint of branded retail s
Slide 28: Appendix
APPENDIX curcheat
Slide 29: Massachusetts
Curaleaf Key State MASSACHUSSETTS • 4 operating dispensaries total; 3 adult-use and 1 medical-only • The only company to receive approval two cultivation facilities, two processing facilities, and 3 adult-use dispensaries, the (1) maximum number allowed per Massachusetts regulations (1) • 2 of 39 ad
Slide 30: Florida
Curaleaf Key State FLORIDA • 33 operating dispensaries, with a plan to buildout to 39 dispensaries by the end of 2020 • Extensive cultivation capacity which includes: 278,000 square foot greenhouse facility and 75,000 square foot indoor facility • An additional 50,000 square feet of indoor cultivati
Slide 31: Arizona
Curaleaf Key State ARIZONA • Operates 8 dispensaries, with the ability to buildout to 9 • Strategically located across the Metro-Phoenix area • Second largest market share based on number of dispensaries • Select has the leading market share by total dollars spent on (1) vape products • 120,000 squa
Slide 32: New Jersey
Curaleaf Key State NEW JERSEY • Operates 1 dispensary • Largest dispensary on the East Coast • Our second dispensary will open in Bordentown Township in 1Q21 (1) • #1 market share in the state with 36% • New 111,000 square foot facility coming online in 1Q21 • Adult-use legalization passed on Novemb
Slide 33: Illinois
Curaleaf Key State ILLINOIS • Operates 9 dispensaries, most which are strategically located across the greater Chicago area • 1 additional location projected to open by year-end • 70,000 square feet grow and processing facility • Significant expansion that completes buildout of entire facility and t
Slide 34: Pennsylvania
Curaleaf Key State PENNSYLVANIA • Operates 9 dispensaries strategically located across the state (1) • In February 2020, Curaleaf was awarded a Clinical Registrant license, which permits the company to open 6 dispensaries and a grow/processing facility (1) • The combined company now has the maximum
Slide 35: Curaleaf Selected Historical Financial Data: Track Record of Growth
CURALEAF SELECTED HISTORICAL FINANCIAL DATA: TRACK RECORD OF GROWTH (1),(2) ($ in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 FY 2017 FY 2018 FY 2019 YTD 2020 Total Revenue $ 35.3 $ 48.5 $ 61.8 $ 75.5 $ 96.5 $ 117.5 $ 182.4 $ 19.3 $ 77.1 $ 221.0 $ 396.4 Managed Revenue 40.7 55.
Slide 36: Curaleaf Non-IFRS Financial Measures
CURALEAF NON-IFRS FINANCIAL MEASURES ($ in millions) Managed Revenue Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 FY 2017 FY 2018 FY 2019 YTD 2020 Total Revenue $ 35.3 $ 48.5 $ 61.8 $ 75.5 $ 96.5 $ 117.5 $ 182.4 $ 19.3 $ 77.1 $ 221.0 $ 396.4 Revenue from Managed Entities, net of MSA Fees
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