Sndl Inc. · NASDAQ:SNDL
Sndl — Q2 2022 Earnings Presentation
31 slides from Sndl's earnings presentation, August 2022
Slide 1: Corporate Presentation
Corporate Presentation August 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
355 2500+ $894MM Overview Retail Stores Employees Latest Quarter (Liquor + Annualized Net Cannabis) Revenue >440K ft2 $689MM Indoor Cultivation Strategic (Cannabis) Investments 3
Slide 4: Overview
$780MM Enterprise Overview Value $844MM Market Capitalization 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 $356MM Cash & Marketable Securities and
Slide 5: Operating Segments
Operating Segments Overview Liquor Retail Cannabis Retail Cannabis Investments • Canada’s largest private • Canada’s largest • Canada’s largest indoor • Emphasis on sector liquor retailer cannabis retail footprint purpose-built cannabis cannabis credit and cultivation and select M&A focused • Divers
Slide 6: The SNDL Advantage
The SNDL Advantage Overview Strong Vertically Retail Strategic Balance Integrated Scale & Cannabis Sheet Cannabis Experience Investments SNDL has one of the Vertical integration SNDL’s profitable SNDL’s investment strongest balance generates economic liquor retail segment portfolio generates sheets
Slide 7: Balance Sheet
Balance Sheet Overview COMPARABLE VALUATION ANALYSIS Net Cash / (Debt) + Share Share Mkt Total 30D Avg. Daily Total Cash / COMPARABLE VALUATION ANALYSIS Securities LQA Cash Flow Price Price Cap Debt Cash EV2 per Basic S/O Value Traded3 From Ops US$ / 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. $728 $801 $917 $57 $68 $124 4.1x 3.7x 3.3x 53.0x 44.0x 24.2x Canopy Growth Corpora
Slide 9: Net Asset Value Waterfall
Net Asset Value Waterfall Overview Implied Residual Value for: 170 Liquor Stores 20 Spiritleaf Corporate Stores 83 Spiritleaf Franchise Stores 82 Nova Stores (63% Ownership) 448,000 sq. ft. Olds Indoor Facility US$2.77 SNDL is currently trading $121mm ($0.51/sh) below NAV of its cash, strategic inve
Slide 10: Liquor Retail
Liquor Retail
Slide 11: Liquor Retail
Liquor Retail 170 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 12: 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 13: Liquor Retail Results
Liquor Retail Q2 2022 Gross Revenue Gross Margin Liquor Retail Results $148.6MM $33.5MM Latest Quarter Annualized Average Adjusted EBITDA¹ Revenue Per Store $15.5MM $3.5MM 13 NOTES 1. Excluding corporate cost allocation
Slide 14: 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 15: Cannabis Retail
Cannabis Retail sndl
Slide 16: Cannabis Retail
Cannabis Retail 185 Canada’s Largest Private Sector $41.41 Cannabis Retail Locations in AB, BC, MB, ON and SK. 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 17: The SNDL Advantage
The SNDL Advantage Cannabis Retail • Overview 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 s
Slide 18: Cannabis Retail Results
Cannabis Retail Q2 2022 Gross Revenue Gross Margin Cannabis Retail Results $63.5MM $13.9MM Latest Quarter Annualized Adjusted EBITDA¹ Average Revenue Per Stores $4.4MM $2.0MM 18 NOTES 1. Excludes Corporate Costs
Slide 19: Brand Portfolio
Brand Portfolio Cannabis Retail Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis, offering a premium consumer Value Buds has a simple mission: deliver compelling value to experience. We have created a modern retail model that offers cannabis consumers. Our goa
Slide 20: Cannabis Cultivation and Production
Cannabis Cultivation and Production
Slide 21: Cannabis Operations
Cannabis Operations Cultivation & Production Operations SNDL’s agile cultivation and production operations enable our +55MM Grams of annual indoor cultivation capacity 289 Listings across 10 provinces brands and products to meet and delight the rapidly evolving cannabis consumer’s preferences. 25.1
Slide 22: 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 23: Cannabis Operations Results
Cannabis Operations Q2 Gross Revenue Average selling price per gram 2022 Cannabis $15.4MM $3.18 Operations Q2 2021: $12.7MM Q2 2021: $1.69 Results Adjusted EBITDA¹ Gross Margin $3.4MM ($4.3MM) Q2 2021: ($11.0 MM) Q2 2021: ($2.8MM) 23 NOTES 1. Excludes Corporate Cost
Slide 24: 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 25: Investments
Investments {O} sndl
Slide 26: Strategically deployed capital for the cannabis industry
Strategically Investments deployed capital for the $561.7MM 6 cannabis Fair market value of SunStream portfolio credits industry cannabis industry investments $462.1MM $99.6MM Fair market value of Fair market value of Canadian SunStream Portfolio credit and equity investments 26
Slide 27: Investments Results
Q2 Investments 2022 Capital Deployed in credit and equity investments Share of the profit of equity accounted investees $689MM ($38.0MM¹) Investments Results Q2 2021: 187.9MM Q2 2021: ($3.7MM) Investment Revenue Interest and Fee Revenue ($35.1MM) $2.6MM Q2 2021: $2.4MM Q2 2021: $3.3MM 27 NOTES 1. Sh
Slide 28: SunStream Overview – Investment Opportunity
SunStream Overview – Investment Opportunity Investments The US cannabis market presents a compelling investment opportunity driven by (i) continued market growth, (ii) scarce capital availability, and (iii) limited institutional participation Opportunity Drivers Largest Cannabis Market in the World
Slide 29: SunStream Overview – Performance To-Date
SunStream Overview – Performance To-Date Investments Geographical Diversity if Investments (1) Established as a premier lender to the US 1 Cannabis Industry since inception Q1/21 Columbia Constructed a portfolio comprised of 2 seven credits (one successfully realized) Portugal Built significant doma
Slide 30: SSB Portfolio Revenue Build vs US MSO Averages
Investments SSB Portfolio Revenue Build vs US MSO Averages SSB Portfolio Cumulative LQA(1) Revenue Build vs US MSO Averages ($’mm) Total Revenue A B C D E Exposure SunStream portfolio provides SNDL investors with unique exposure to US multi-state and other operators 30 (1) LQA = Last Quarter Annuali
Slide 31: 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]