TerrAscend Corp. · TSX:TSND
TerrAscend — Investor Presentation (May 2022)
26 slides from TerrAscend's investor presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation May 2022 | TerrAscend.com (CSE: TER | OTCQX: TRSSF) (CSE: TER | OTCQX: TRSSF) p.1
Slide 2: Disclaimer
Disclaimer Investors and prospective investors should rely only on the information contained in the disclosure filings (the “Filings”) of TerrAscend Corp. (the “Company” or “TerrAscend”). This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the inform
Slide 3: Company Journey
Company Journey CA 2021 April Canopy Growth Q4 2022 financing $60M Dec. 2020: Closed $140M Announced 2021 results: NJ begins adult- Opened 2nd and 3rd PA of debt financing use sales on dispensaries $210.4m Revenue, April 21, 2022 Acquired Jan. 2021: $65.6m Adj. EBITDA Initial investment in Pivoted o
Slide 4: Our Business
Our Business Creating a leading, vertically-integrated, North American Operator 2017 26 $210.4 M Year Founded Operating Dispensaries FY 21 Net Revenue ~1,300 10 42% Total employees Premium Brands YoY Revenue Growth 5 Broad Wholesale 56% U.S. States Distribution FY ‘21 Adj. Gross Margin 10 7 31% Cana
Slide 5: Company Strategy
Company Strategy Delight our Depth & Scale Vertical Operational Focused on customers with in Integration to Excellence & Expanding great brands & Attractive Maximize Quality Financial Digital & Data outstanding Limited & Profitability Discipline Capabilities retail License States experience (CSE: TE
Slide 6: Operations in Highly Attractive U.S. Markets
Operations in 5 Highly Attractive U.S. Markets MICHIGAN PENNSYLVANIA Population Population CALIFORNIA 9.9 Million 12.8 Million Industry Leading Retail and Leadership in Branded Exclusive Brand Partnerships Products Population NEW JERSEY MARYLAND 39.5 Million Population Super Premium Flower & Retail
Slide 7: Pennsylvania
Pennsylvania Market Details: Population: 12.8 Million Type: Medical Size: $1.2 Billion/year – Current1 $3.9 Billion/year - 20252 TerrAscend Operations: Processing) • 1 of 5 originally permitted vertically integrated cannabis cultivator, processor, and dispensary operators • State-of-the-art ~150K Sq
Slide 8: New Jersey
New Jersey Market Details: Population: 8.9 Million Type: Adult Use (Beg. 4/21/22) Size1: $600 Million/year – Current1 Lodi (Dispensary) $2.5 Billion/year – 20251 TerrAscend Operations: • 1 of 4 MSOs licensed within Northern NJ, adjacent to NYC • 1 of 12 vertically integrated operators in the State •
Slide 9: Michigan
Michigan Market Details: Population: 9.9 million Harrison Type: Adult-Use (Cultivation / Processing & Distribution) Size: $2.0 Billion/year – Current1 Monitor $2.5 Billion/year - 20251 (Cultivation / Processing) Traverse City Lansing TerrAscend Operations: (Dispensary) (Dispensary) • Acquired Gage G
Slide 10: Maryland
Maryland Market Details: Population: 6.3 Million Type: Medical Size1: $600 Million/year – Current1 $800 Million/year – 20251 TerrAscend Operations: • Acquired HMS Health in May 2021 • 20k Sq Ft cultivation and processing facility located in Frederick • Ability to acquire up to 4 Retail Licenses • Br
Slide 11: California
California Market Details: Population: 39.5 million Valhalla Type: Medical/Adult-use (Edibles Manufacturing) Size1: $4.3 Billion/year – Current1 $5.7 Billion/year – 20251 Berkeley TerrAscend Operations: ) • Focused on San Francisco / Bay Area with 5 Retail Dispensaries Open • State Flower 20K Sq Ft
Slide 12: Canadian Footprint
Canadian Footprint Population 37.6 Million Market type: Unlimited License • Medical & Adult Use TerrAscend Footprint: • Headquartered in Mississauga, Ontario • 45K Sq Ft production facility • Cookies branded retail dispensary located in Toronto • Focused on building flower market share and expanding
Slide 13: Vertical Integration Strong Profit
Adjusted. GM%: Vertical Integration 55% 56% of Quality In-House Brands Driving Strong Profit 2020 2021 Margins (CSE: TER | OTCQX: TRSSF) p.13 p. 13
Slide 14: Leadership in Wholesale
Leadership in Wholesale FY ‘21 Revenue Breakdown1: • Focusing on wholesale distribution of branded manufactured products 41% 48% • Scaling cultivation and processing facilities in core markets 69% 70% 71% to support demand while maintaining cost leadership 77% 94% • Introducing complete portfolio of
Slide 15: Case Study: Patient Preferred Products Driving Competitive Position in Pennsylvania
Case Study: Patient Preferred Products Driving Competitive Position in Pennsylvania PA FY 2021 Brand Market Share1 19.0% 16.0% 13.0% Brands Combined Market Share: 13.0% 8.0% 7.0% 7.0% 5.0% 3.0% 3.0% 3.0% 3.0% 2.0% 2.0% 2.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1. Source: Headset, Pennsylvania Top Brands La
Slide 16: Expanding Portfolio of Brands Across TerrAscend's North American Footprint
Expanding Portfolio of Brands Across TerrAscend’s North American Footprint 1 1. Cookies exclusively licensed in MI and NJ. (CSE: TER | OTCQX: TRSSF) p.16
Slide 17: Elevated Retail Experiences
Elevated Retail Experiences 25 operating locations across Pennsylvania, New Jersey, Michigan, and California. 1 in Toronto • 10 years of operating retail experience in San Francisco, CA • Gage dispensaries generate industry leading retail Insert photo with metrics, including strong average basket si
Slide 18: TerrAscend + Cookies
TerrAscend + Cookies Bringing New Jersey, Michigan, and Toronto access to Cookies branded products • New Jersey Multi-Year Brand Licensing Agreement : • Subject to regulatory approval and certain conditions, TerrAscend will be the sole cultivator and manufacturer of Cookies products in New Jersey •
Slide 19: Investing for Growth and Scale in Priority Markets
• NJ cultivation & production ramp up Investing for Growth and • 4 new dispensaries across NJ & PA (KCR Scale in Priority Markets 1H21 acquisition) • Completed acquisition of HMS Maryland grower/processor Revenue: Adjusted EBITDA: • Hagerstown, MD facility acquired (156k sq ft) and +42% cultivation/
Slide 20: FY 2021 Financial Metrics
FY 2021 Financial Metrics1 56% 31% Adj. SG&A Among Top Gross Margin % of Revenue US MSOs across $65.6M 31% key financial metrics Adj. Adj. EBITDA EBITDA % 1. Adjusted Gross (Profit)/Margin and Adjusted EBITDA are Non-IFRS measures. Please see discussion and (CSE: TER | OTCQX: TRSSF) reconciliation o
Slide 21: Strong Balance Sheet to Deploy Towards Growth Initiatives
Strong Balance Sheet to Deploy Towards Growth Initiatives $88.4 million $140 million $175 million Q1 2022 Cash & Equivalents1 Debt raised Q4 2020 Equity Raised in Q1 2021 Backed by iconic industry partners with a vested interest in our success: 1. Includes Gage cash balances of ~$25 million for the
Slide 22: Continued Momentum Across All Key Metrics
Continued Momentum Across All Key Metrics Net Revenue USD$M Adjusted EBITDA USD$M $210.4 $65.6 $41.7 $147.8 $63.8 -$26.6 2019 2020 2021 2019 2020 2021 Adjusted. GM% OPEX as a % of Net Revenue 57% 56% 59% 38% 31% 4% 2019 2020 2021 2019 2020 2021 (CSE: TER | OTCQX: TRSSF) p.22
Slide 23: Experienced Executive Leadership Team
Experienced Executive Leadership Team Executive Leadership Team Jason Wild Ziad Ghanem Keith Stauffer Executive Chairman President & Chief Financial Officer Chief Operating Officer Lynn Gefen Charishma Kothari Jodie Lampert David Wheeler Chief Legal Officer SVP, Marketing SVP, People & Culture SVP,
Slide 24: Share Count Detail
Share Count Detail Fully Diluted Shares Outstanding Total Shares (As of May 10, 2022) (in Millions) Common Shares 252 Preferred Shares (as converted) 14 Exchangeable Non-voting Shares 52 Total Basic Shares Outstanding 318 Warrants and Options 71 (Weighted Average Strike Price of CAD$6.07) Total Shar
Slide 25: Our Focus
Our Focus Happy World-class Strong Financial Data & Customers Talent Core Values Discipline Technology (CSE: TER | OTCQX: TRSSF) p.25 p. 25
Slide 26: Thank You
Thank You May 2022 | Terrascend.com (CSE: TER | OTCQX: TRSSF) (CSE: TER | OTCQX: TRSSF) p.26