Khiron Life Sciences Corp. · OTC:KHRNF
Khiron Life Sciences — Investor Presentation (August 2022)
24 slides from Khiron Life Sciences's investor presentation, August 2022
Slide 1: A medical cannabis solution for the global community
TSXV:KHRN I OTCQX:KHRNF FRANKFURT:A2JMXC A medical cannabis solution for the global community CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY 0
Slide 2: Legal Notices
LEGAL NOTICES This information in this presentation is current as of June 30, 2022, unless otherwise indicated. The information contained in this presentation is provided for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to
Slide 3: Khiron: Differentiated Strategy to become Indispensable
Khiron: Differentiated Strategy to become Indispensable Business to Consumer focus - Understand the needs and pain points of 1 patients, doctors and key stakeholders to build brand loyalty 2 Profitable, Sustainable growth – Sell value added, high margin products that consumers need 3 High growth Int
Slide 4: 1) Business to Consumer Focused
1) Business to Consumer Focused End-to-end solution to deliver access to safe services and medical cannabis products in Latin America and Europe >25,000 patients serviced worldwide Creating Value to Patients • Caring about patient wellbeing and needs • Delivering a product that benefits patients • I
Slide 5: With a successful Go-to-market strategy
With a successful Go-to-market strategy Khiron´s successful approach is to make ourselves INDISPENSABLE to the patients by understanding their pain points and implementing strategies to solve them Patient Pain Points Go-to-market Strategy Efficacy and safety of cannabis Doctor education Lack of pres
Slide 6: 2) Profitable and sustainable growth
2) Profitable and sustainable growth Khiron sells high gross margin medical cannabis products that patients want to use, generating sustainable revenues and a clear path to profitability Khiron Sales Volume - Latin America Khiron Sell-Out Volume - Europe Colombia, Peru, Brazil UK, Germany Tincture B
Slide 7: 3) Focused on high growth International markets
3) Focused on high growth International markets Medical cannabis is the one of the biggest disruptors to the Latin America and European pharmaceutical industry Latin America >8 650 Million Countries with approved medical cannabis laws COLOMBIA 4.0 Million Potential $ 450 Annual Expenditure per Patie
Slide 8: 4) Become indispensable, deliver exceptional customer experience
4) Become indispensable, deliver exceptional customer experience Specialized Cannabis Distribution & Real World Evidence- High-quality product Clinics Pharmacy Retail based Education portfolio • Drive patient • Pharmaceutical grade, acquisition and • Generate evidence to innovative portfolio • Drive
Slide 9: A) Through integrative health services
A) Through integrative health services One stop shop to meet broad patient health needs, build loyalty & generate evidence in Latin America and the UK Strategic objectives of ZereniaTM Patient Consultations & Cannabis Conversion Rates Worldwide Consultations (Colombia & UK) 1 Drive patient demand %
Slide 10: Zerenia clinic locations
Locations 40% • Chronic Pain 10 600,000 • • United Kingdom 1 Colombia 6 • • Palliative Care Neurology Annual consultations conversion rate to • Sleep Disorders Clinics worldwide • Peru 2 capacity medical cannabis • Mental Health • Brazil 1 August 2022 https://clinicazerenia.com TSXV:KHRN I OTCQX:KHR
Slide 11: B) By controlling the value chain through distribution
B) By controlling the value chain through distribution Khiron’s recent acquisition of Pharmadrug Production GmbH in Germany allows us to control complete value chain Strategic objectives of Pharmadrug 1 Direct access to point of sale / pharmacies 2 Earn higher margins 3 Point of sale consumer data a
Slide 12: Khiron's distribution and retail capabilities
Khiron’s distribution and retail capabilities Distribution in Europe Pharmadrug Acquisition • Pharmadrug is a Licensed Schedule 1 • Increase product sales gross margins Narcotics Distributor (EU GMP) for Germany • Expand Khiron´s product portfolio • EU-GMP certification enabling in- • Generate data
Slide 13: C) Generating evidence and educating doctors worldwide
C) Generating evidence and educating doctors worldwide Building an ecosystem of evidence and education to drive demand for our products PATIENTS CLINICS DATA EVIDENCE PUBLICATIONS DOCTORS INSURANCE EDUCATION Selling effective products Khiron % Patients with significant improvement Patient conditions
Slide 14: D) Offering a high-quality and evolving product portfolio
D) Offering a high-quality and evolving product portfolio Latin America (Extracts) Europe (Dried Flower + Extracts) High CBD Balanced High THC TSXV:KHRN I OTCQX:KHRNF I FRANKFURT:A2JMXC 13
Slide 15: With a pharmaceutical-grade production and supply chain
With a pharmaceutical-grade production and supply chain Khiron’s supply chain strategy includes a combination of own cultivation and extraction and 3rd party suppliers for its pharmaceutical-grade product portfolio Cultivation • Fully licensed for commercial THC and CBD cultivation, extraction & sal
Slide 16: 5) Patient-first team culture
5) Patient-first team culture Diverse, and multicultural team of highly skilled team Alvaro Torres Franziska Katterbach CEO President Khiron Europe • Industrial Engineer (RPI), MBA • 10+ years of regulatory expertise and 5+ as business (Georgetown University) executive in the European emerging canna
Slide 17: Board of Directors
Board of Directors Chris Naprawa Alvaro Torres Chairman of the Board Co-founder & Director Independent Director • Industrial Engineer who built infrastructure projects • 20+ years of experience in institutional in Colombia and Lat Am. capital markets. • Formerly with SNC Lavalin and successfully bui
Slide 18: 6) Continuous growth and revenue diversification
6) Continuous growth and revenue diversification Continuous Growing Revenues with Higher Gross H1 2022 (January to June) Margins Cannabis Revenues by Region Historic Revenues H1 2022 - 2022 (January to June) CAD Million 48% 38% $9.1 21% 45% $5.6 59% 55% 25% $3.6 2020 H1 2021 H1 2022 H1 Latin America
Slide 19: Creating Shareholder Value
Creating Shareholder Value Continuous revenue and gross margin growth. Disciplined approach to reduction of expenses and improvement of cash flow. Achievable EBITDA neutrality in the short term All values in CAD Million Cash Flow from Operations & Revenue Q2 2022 Highlights Revenue 76% Operating Cas
Slide 20: Proven model of profitable sales and sustainable growth
Proven model of profitable sales and sustainable growth Low debt, high profit margin, reduced expenses and growing patient base in Latin America and Europe Khiron Revenue Estimates Balance Sheet June 30 2022 CAD Million CAD Million Cash 5.8 Adjusted EBITDA 58% A/R 4.4 52% Inventories 9.4 Current ass
Slide 21: Khiron: A standout opportunity in the International cannabis market
Khiron: A standout opportunity in the International cannabis market Fast growing, high margin, and EBITDA positive short-term visibility with a successful strategy for Latin America and Europe In the last 12 months, Khiron has shown faster C$ 0.12 C$ 25M ~1.1x growth in cannabis revenues, and lower
Slide 22: 7) Catalysts and Recent Developments
7) Catalysts and Recent Developments The cannabis industry in Latin America and Europe is just getting started • Potential Upcoming Catalysts • Recent Khiron Developments • Mexico: Allowance for imports and sale of • Partnership with Fundación Teletón to medical cannabis open ZereniaTM clinics in Me
Slide 23: Investment Highlights
Investment Highlights 1 Market leader in medical cannabis in Latin America and Europe 2 Proven B2C strategy with strong gross margins and growing revenue and patient base 3 Established moat with ZereniaTM medical cannabis clinics in Latin America and UK 4 Strong footprint in Germany with own EU-GMP
Slide 24: Visit Khiron Online
TSXV:KHRN I OTCQX:KHRNF FRANKFURT:A2JMXC VISIT KHIRON ONLINE INVESTORS.KHIRON.CA [email protected] ALVARO TORRES Co-founder & CEO Bogotá, Colombia Email: [email protected] FRANZISKA KATTERBACH Europe President Frankfurt, Germany Email: [email protected] TSXV:KHRN I OTCQX:KHRNF I FRANKFURT:A2J
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