CV Sciences, Inc. · OTC:CVSI
CV Sciences — Investor Presentation (October 2023)
19 slides from CV Sciences's investor presentation, October 2023
Slide 1: CV Sciences
oi Sci ms +PlusCBD daily ZL ay balance CBD THC PULL Spectrum HEMP EXTRACT 25 os IMC Seiuscep +PwusceED
Slide 2: Safe Harbor & Disclaimer
Safe Harbor & Disclaimor This presentation may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. T
Slide 3: Company Overview
Company Overview • Highly trusted brand in market for 10 years, launched flagship brand +PlusCBD in 2014. • One of the largest retail footprints in the industry with 4,000+ points of distribution in the U.S. • Strong ecommerce operation supporting Omni-channel strategy. • #1 Selling Brand in Natural
Slide 4: Brand Overview
Brand Overview Distribution Description Images 4,000+ B2B locations, E- In Market since 2014, includes +PlusCBD commerce Full Spectrum & THC-free Formats include gummies, softgels, liquids and topicals 4,000+ B2B locations, E- In Market since 2021, products Wellness line commerce include health clai
Slide 5: Sales Model – Omnichannel Strategy B2B & B2C
Sales Model – Omnichannel Strategy B2B & B2C 5
Slide 6: Distribution
Distribution • All brands are distributed in B2B and B2C. • B2B distribution includes Natural Product Retail (2,000+ locations), FDM (1,000+ locations & Specialty (1,000+ locations). • Sales model includes external broker network for NPR channel, internal sales staff supporting all channels. • Stron
Slide 7: B2B - Sales Model
B2B - Sales Model • Broker relationships covering all U.S. markets • Relationships with “buyers” and “consumers” • Keeps us very close to the customer 7
Slide 8: B2B - Sales Model
B2B - Sales Model • Strongest B2B retail penetration for CBD industry 8
Slide 9: SPINS Data
SPINS Data (1) (1) SPINS is the leading provider of syndicated data and insights for the natural, organic and specialty products industry. 9
Slide 10: Market Leader in Natural Products Retail (NPR) Channel
Market Leader in Natural Products Retail (NPR) Channel Percentage of Total Market Da ta th ro u g h :2 0 2 3 -Ju l-1 6 Fu n ctio n a l In g red ien ts: Ca n n a b id io l (CBD) a n d Hemp 45% P ro d u cts b y Bra n d Dols, % Chg, Yago Units 40% 52wks 24wks 12wks 4wks 52wks 24wks 12wks 4wks 35% Total
Slide 11: NPR Channel – Brands sold per month
• • present continues Brand contraction post 2018 Farm Bill to Brands sold per month – 130 150 160 170 180 190 200 210 140 2/3/19 145 3/3/19 146 4/3/19 154 5/3/19 159 6/3/19 167 7/3/19 174 178 8/3/19 185 9/3/19 186 10/3/19 185 11/3/19 192 12/3/19 192 1/3/20 198 2/3/20 194 3/3/20 200 4/3/20 195 5/3/2
Slide 12: Ecommerce Overview
Ecommerce Overview What this shows: • 41% of our revenue is derived from ecommerce. • Very loyal customer base. • Key metrics: a) 70,000+ monthly visits b) Conversion rate – ≈ 7.0% c) AOV - ≈ $80.00 Opportunity: • Ecommerce infrastructure is built and ready for significant scale 12
Slide 13: Financial Information
+PlusCBD by CV SCIENCES Financial Information 13
Slide 14: Adjusted EBITDA
Adjusted EBITDA (in $M) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Product sales, net $ 4.8 $ 5.1 $ 5.1 $ 5.0 $ 4.4 $ 4.1 $ 3.8 $ 3.9 $ 4.1 $ 4.0 Gross profit $ 2.4 $ 2.3 $ 2.4 $ 1.6 $ 1.2 $ 1.3 $ 1.6 $ 1.6 $ 1.8 $ 1.7 48.7% 44.7% 46.2% 32.4% 26.0% 30.7% 41.6% 40.4% 43.0% 43.3% R&D
Slide 15: Regulatory Inflection Points
Regulatory Inflection Points 15
Slide 16: Regulatory Environment – Key Legislation
Regulatory Environment – Key Legislation • Safe Banking: Senate Banking Committee approved on September 27, 2023. Allows banks to work with cannabis businesses without penalty. • Rescheduling: DEA likely to reschedule cannabis to Schedule III • Garland Memo: Likely to follow “Cole Memo” with a Feder
Slide 17: Growth Opportunities
+PlusCBD by CV SCIENCES Growth Opportunities 17
Slide 18: Growth Opportunities
Growth Opportunities • Market share increase from brand contraction. • Brand consolidation through M&A. • Product innovation supported by evidence-based science. • Leverage key assets: retail distribution, strong brand awareness, strong infrastructure and people. • Complimentary CPG products in “hea
Slide 19: Thank You
+PlusCBD by CV SCIENCES Thank You 19