Sndl Inc. · NASDAQ:SNDL
Sndl — Investor Presentation (November 2022)
35 slides from Sndl's investor presentation, November 2022
Slide 1: Corporate Presentation
Corporate Presentation November 2022 NASDAQ: SNDL
Slide 2: Disclaimer
Disclaimer Forward-looking statements Certain statements contained in this presentation may constitute forward-looking information and statements. All statements in this presentation, other than statements of historical fact, that address events or developments concerning SNDL Inc. (“SNDL" or the "C
Slide 3: Overview
350+ 2500+ $922MM Overview Retail Stores Employees Latest Quarter (Liquor + Annualized Net Cannabis) Revenue >820K ft2 $678MM Indoor Cultivation Strategic (Cannabis) Investments 3
Slide 4: Overview
$762MM Enterprise Overview Value1 $834MM Market Capitalization1 Largest private sector distributor of liquor and cannabis in Canada with 355 retail locations. Focused on building a leading regulated products platform capable of generating sustained profitability $291MM Cash & Marketable Securities1
Slide 5: Operating Segments
Operating Segments Overview Liquor Retail Cannabis Retail Cannabis Investments • Canada’s largest private • Canada’s largest • Canada’s largest indoor • Emphasis on sector liquor retailer cannabis retail footprint purpose-built cannabis cannabis credit and cultivation and select M&A focused • Divers
Slide 6: The SNDL Advantage
The SNDL Advantage Overview Strong Vertically Retail Strategic Balance Integrated Scale & Cannabis Sheet Cannabis Experience Investments SNDL has one of the Vertical integration SNDL’s profitable SNDL’s investment strongest balance generates economic liquor retail segment portfolio generates sheets
Slide 7: Balance Sheet
Balance Sheet Overview COMPARABLE VALUATION ANALYSIS Net Cash / (Debt) + Share Share Mkt Total 30D Avg. Daily Total Cash / COMPARABLE VALUATION ANALYSIS Investments LQA Cash Flow Price Price Cap Debt Cash EV2 per FD S/O Value Traded3 Use In Ops US$ / sh C$ / sh C$mm C$mm C$mm C$mm C$ / sh C$mm Years
Slide 8: Income Statement
Income Statement Overview COMPARABLE VALUATION ANALYSIS Revenue EBITDA EV / Revenue EV / EBITDA CY21A CY22E CY23E CY21A CY22E CY23E CY21A CY22E CY23E CY21A CY22E CY23E C$mm C$mm C$mm C$mm C$mm C$mm Tilray Brands, Inc. $783 $821 $910 $59 $69 $115 4.6x 4.4x 4.0x 61.3x 52.5x 31.5x Canopy Growth Corpora
Slide 9: SNDL Valuation
SNDL Valuation Overview NET ASSET VALUE WATERFALL (US$4.77) Denoted in C$/sh C$3.82/sh (US$2.87/sh) SIGNIFICANT UPSIDE POTENTIAL (US$2.60) Implied Residual Value for: 169 Liquor Stores 23 Spiritleaf Corporate Stores 75 Spiritleaf Franchise Stores 85 Nova Stores (63% Ownership) 448,000 sq.ft. Olds Fa
Slide 10: The Opportunity
SNDL & VALENS Liquor Retail THE OPPORTUNITY Full suite of cannabis 2.0 manufacturing Largest private sector liquor and cannabis 1 capabilities with industry-leading product innovation 1 retailer with 350+ stores across Canada One of the strongest balance sheets in the 2 Top 10 cannabis branded marke
Slide 11: Transaction Highlights
04 VALENS TRANSACTION HIGHLIGHTS BEST-IN-CLASS PRODUCTION INTEGRATED WITH LARGEST RETAIL FOOTPRINT IN CANADA FULL BRANDED PRODUCT OFFERING WITH END-TO-END IN-HOUSE MANUFACTURING CAPABILITIES & BIOMASS OPTIONALITY WITH BOTH PREMIUM CULTIVATION AND LOW-COST PROCUREMENT PEER LEADING DEBT-FREE BALANCE S
Slide 12: Strategic Alignment to Cannabis Model
08 Valens STRATEGIC ALIGNMENT TO CANNABIS MODEL Canada’s Largest Cannabis Canada’s Largest A Leading Canadian Investment Segment Regulated Products Platform Manufacturer UPSTREAM SunStream Bancorp Low-Cost Biomass Procurement Premium Cannabis Cultivation MIDSTREAM Canadian Cannabis Credit Industry-L
Slide 13: Liquor Retail
Liquor Retail
Slide 14: Liquor Retail
Liquor Retail 169 1,245 Canada’s Largest Private Sector Liquor Retail locations in Alberta Employees across three distinct Retailer and British Columbia retail banners SNDL's Liquor Retail segment has substantial experience and scale operating in competitive & regulated retail environments and gener
Slide 15: The SNDL Advantage
The SNDL Advantage Liquor Retail Operational Buying Diversified Scale & Power Drives Retail Efficiency Margin Footprint Operational scale Store footprint and Broad range of liquor creates meaningful warehousing customers with a efficiencies for infrastructure are diversified retail corporate service
Slide 16: Liquor Retail Q3 2022 Results
Liquor Retail Q3 2022 Gross Revenue Gross Margin Liquor Retail Results $152.5MM $35.6MM Latest Quarter Annualized Average Adjusted EBITDA¹ Revenue Per Store $13.7MM $3.6MM 16 NOTES 1. Excluding corporate cost allocation 2. Comparison are from the third quarter of 2021
Slide 17: Brand Portfolio
Brand Portfolio Liquor Retail Wine and Beyond is Western Canada’s Liquor Depot is a convenience retail liquor Ace Liquor Discounter has more largest liquor stores. We pride ourselves outlet with over 20 locations in Alberta. than 130 locations in Alberta where on having a selection of over 6,000 you
Slide 18: Cannabis Retail
Cannabis Retail sndl
Slide 19: Cannabis Retail
Cannabis Retail 183 Canada’s Largest Private $40.35 Sector Cannabis Retail Locations in AB, BC, MB, ON and SK1 Average Basket Size Retailer With our Value Buds and Spiritleaf banners combined, SNDL has the largest cannabis retail footprint in Canada and gains significant operational efficiency and s
Slide 20: The SNDL Advantage
The SNDL Advantage Cannabis Retail Regulatory Diversified Robust Data Disciplined Compliant Banner & Consumer Retail Structure Strategy Insights Operations Target distinct Leverage extensive Emphasis on effective A vertically integrated transactional data, to and cost-efficient consumer segments, re
Slide 21: Cannabis Retail Q3 2022 Results
Cannabis Retail Q3 2022 Gross Revenue Gross Margin Cannabis Retail Results $66.2MM $14.5MM Latest Quarter Annualized Adjusted EBITDA¹ Average Revenue Per Store 2 $2.8MM $2.3MM 21 NOTES 1. Excludes Corporate Cost 2 Excludes franchise system-wide sales 2. Comparisons are from the third quarter of 2021
Slide 22: Brand Portfolio
Brand Portfolio Cannabis Retail Spiritleaf aims to be the most knowledgeable and trusted Value Buds has a simple mission: deliver compelling value to source of recreational cannabis, offering a premium consumer cannabis consumers. Our goal is to attract, grow, and retain experience. We have created
Slide 23: Cannabis Operations
Cannabis Operations ae sndl
Slide 24: Cannabis Operations
Cannabis Operations Cannabis Operations SNDL’s agile cultivation and production operations enable our +100MM Grams of annual indoor cultivation capacity1 318 Listings across 10 provinces1 brands and products to meet and delight the rapidly evolving cannabis consumer’s preferences. 24.9 % SNDL record
Slide 25: The SNDL Advantage
The SNDL Advantage Cannabis Operations Cultivating Maximizing Consumer & Flexible Small Batch Product Customer Manufacturing at Scale Quality Centric Small-batch Tailor production to Consistent, high- Achieved a record- market demand approach enables a quality cannabis at weighted average through sc
Slide 26: Cannabis Operations Q3 2022 Results
Cannabis Operations Q3 Gross Revenue Average selling price per gram 2022 Cannabis $16.5MM $3.92 Operations Results Adjusted EBITDA¹ Gross Margin ($0.6MM) $0.2MM 26 NOTES 1. Excludes Corporate Cost 2. Comparison are from the third quarter of 2021
Slide 27: Brand Portfolio
Brand Portfolio Cannabis Operations Top Leaf was founded by cannabis enthusiasts under a simple guiding principle: "What do we want Palmetto is always Good to Go. We keep it to smoke?" The answer is easy. We want the best. strange, fun and worth the time. We meander Our endless pursuit for an except
Slide 28: Investments
Investments {O} sndl
Slide 29: Strategically deployed capital for the cannabis industry
Strategically Investments deployed capital for the cannabis $653.1MM 6 Fair market value of SunStream portfolio credits industry cannabis industry investments $497.8MM $155.3MM Fair market value of Fair market value of Canadian SunStream Portfolio credit and equity investments 29 NOTES 1. All number
Slide 30: Investments Q3 2022 Results
Q3 Investments 2022 Capital Deployed in credit and equity investments Share of the profit of equity accounted investees $689MM Investments Results $9.2MM¹ Investment Revenue Interest and Fee Revenue ($5.5MM) $4.3MM 30 NOTES 1. Share of profit of equity accounted investees includes non-cash fair mark
Slide 31: SunStream Overview
SunStream Overview Investments Why was Sunstream launched? ➢ To earn attractive risk-adjusted returns through secured debt, hybrid securities, and distressed debt / equity ➢ To deploy capital into cannabis investments including US opportunities without running afoul of NASDAQ requirements ➢ To lever
Slide 32: SunStream Overview – Investment Opportunity
SunStream Overview – Investment Opportunity Investments The US cannabis market presents a compelling investment opportunity driven by (i) continued market growth, (ii) scarce capital availability, and (iii) depressed valuations Opportunity Drivers Largest Cannabis Market in the World (1)(2) Scarce C
Slide 33: SunStream Overview – Performance To-Date
SunStream Overview – Performance To-Date Investments Geographical Diversity of Investments (1) Established as a premier capital provider 1 to the US Cannabis Industry since inception Q1/21 Columbia Constructed a portfolio comprised of 2 seven credits (one successfully realized) Portugal Built signif
Slide 34: SSB Portfolio Revenue Build vs US MSO Averages
Investments SSB Portfolio Revenue Build vs US MSO Averages SSB Portfolio Cumulative LQA(1) Revenue Build vs US MSO Averages ($’mm) $1,563.1 $518.3 $1,083.2 $390.0 Large-Cap MSO Avg ($2.6bn Avg TEV) $291.0 $128.8 $235.0 $303.8 Mid-Cap MSO Avg ($620mm Avg TEV) Total Revenue A B C D E Exposure Sunstrea
Slide 35: Analyst Coverage
Analyst Coverage Frederico Gomes ATB Financial Tamy Chen BMO Shaan Mir Canaccord Genuity Pablo Zuanic Cantor Fitzgerald Sophie Pilon Investor Relations and Communications [email protected]