Auxly Cannabis Group Inc. · TSX:XLY
Auxly Cannabis — Investor Presentation (November 2020)
26 slides from Auxly Cannabis's investor presentation, November 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION November 2020
Slide 2: Legal Disclaimer
Legal Disclaimer Thereafter, all references should be to “forward- looking statements. Forward-looking information The information provided herein is not intended to looking information”. This corporate document may use contained in this presentation is based on the provide financial, tax, legal or
Slide 3: Vision and Mission
VISION MISSION Auxly Cannabis Group Investor Presentation 3
Slide 4: Auxly Snapshot: Asset Overview
AUXLY SNAPSHOT Asset Overview Our key assets include owned processing and manufacturing facilities, research and development and joint-venture cultivation projects. Asset Research & Cultivation Processing & Development Manufacturing Dosecann LD Inc. ✔ ✔ Market Capitalization: Employees: Robinsons ✔
Slide 5: Highly Experienced and Skilled Team
HIGHLY EXPERIENCED AND SKILLED TEAM Hugo Alves, JD Mike Lickver, JD, MBA Brian Schmitt, CPA, CFA Ian Rapsey Andrew MacMillan Chief Executive Officer President Chief Financial Officer Chief CreativeOfficer SVP, Commercial Greg Boone Alan Cooke Vladimir Klacar Peter Crooks Dr. Bob Chapman SVP, Busines
Slide 6: Q3 2020 Corporate Highlights
Q3 2020 CORPORATE HIGLIGHTS • Launched the new Ultra-Value brand, Back Forty, a brand that is all about embracing simplicity and getting back to the basics. Three unique high-potency SKUs are available in select provinces across the country • Auxly’s wholly owned subsidiary, KGK, received its second
Slide 7: Strong Focused Growth
STRONG FOCUSED GROWTH (000s) ▪ Net Revenue was up 57% quarter over quarter, with significant Q3 2020 Q2 2020 Change % growth of 85% in cannabis revenue, as Auxly continues to gain meaningful national market share Net Revenue $13,449 $8,564 57% ▪ Total gross margins slightly decreased due to differen
Slide 8: National 2.0 Product Performance Overview
NATIONAL 2.0 PRODUCT PERFORMANCE OVERVIEW • One of the first LPs to market with 2.0 products • One of the top LPs leading market share in every province1 • Cannabis 2.0 products made up 80% of net cannabis revenue in Q3 2020 with 20% coming from cannabis1.0 products • 21% market share in national va
Slide 9: Our Products
OUR PRODUCTS 510 Vape Cartridges Soft Chews Soft Chews Oils Dried Flower Pre-rolls Vapes Capsules Vapes Chocolates Dried Flower Hard Candy Chocolate Coming Soon Dried Flower** New Vape Strains* New Vape Strains* Topical** Pre-rolled cannabis** Concentrates** Hard Candy** Auxly Cannabis Group Investo
Slide 10: Cultivation Platform
CULTIVATION PLATFORM ▪ Portfolio of cultivation assets provides access to expected supply of over 100,000 kg per annum ▪ Mitigates operational risk of single-source of raw cannabis ▪ Canadian cultivation is diversified across high-efficiency, automated greenhouse, strategic outdoor grows and ultra-p
Slide 11: Dosecann: Auxly's Heartbeat of Product Innovation and Manufacturing
DOSECANN: AUXLY’S HEARTBEAT OF PRODUCT INNOVATION AND MANUFACTURING Applying best practices and exceeding requiredstandards Consumer safety is our top priority; Safety Board oversees entire product development pathway Delivering effective, consistent products backed by science and innovation Facilit
Slide 12: Expansion into Cannabis 1.0
EXPANSION INTO CANNABIS 1.0 Robinsons launched Dried Flower in four distinct strains in 3.5 gram: • Lemon Garlic OG • Fire OG • GG #4 • Purple Kush Kolab “Grower Series” has had several successful product launch collaborations: Kolab x Lotus Cannabis Co. • Kalifornia in 3.5 gram Kolab x Safari Flowe
Slide 13: Leading with Science and Innovation
LEADING WITH SCIENCE AND INNOVATION Auxly Cannabis Group Investor Presentation 13
Slide 14: Strategic Partners
STRATEGIC PARTNERS IMPERIALBRANDS CAPSUGEL/LONZA NATURES CROPS INNER SPIRIT KINDRED Imperial Brands PLC is an Capsugel Inc., a subsidiary of Natures Crops is a vertically Parent of Spirit Leaf Inc, Kindred, a wholly owned international fast-moving Lonza Group Ltd., designs, integrated grower and Inn
Slide 15: Imperial Brands Partnership Continues to Drive Value
IMPERIAL BRANDS PARTNERSHIP CONTINUES TO DRIVE VALUE Combining capabilities to drive significant future growth Establishing consumer Combining extensive Enhancing capabilities to Collaborating on the Engaging in consumer safety governance vape IP with leading rapidly commercialize design and sourcin
Slide 16: A Consumer-Centric Approach to Building a Winning Portfolio
A CONSUMER-CENTRIC APPROACH TO BUILDING A WINNING PORTFOLIO Our brands were designed to target specific consumer segments representing the largest current user segments and those with the greatest future growthpotential. Cannabis Enthusiast Cannabis Connoisseur % Share of current % Share of future %
Slide 17: Diverse Brand Platform
DIVERSE BRAND PLATFORM Auxly Cannabis Group Investor Presentation 17
Slide 18: Back Forty
Back Forty ABOUT: CONSUMER PROFILE: Back Forty’s mission is to bring Cannabis enthusiasts are the most price sensitive consumer segment but in to consumers a simple, particularly, Back Forty’s main target would be the “value seekers”. They’ve uncomplicated cannabis product transitioned from the illi
Slide 19: Kolab Project
KOLAB PROJECT ABOUT: CONSUMER PROFILE: Kolab Project’s mission is to Consumers are highly experienced with cannabis and represent the largest provide a carefully curated group of current consumers and future cannabis consumers. They are hip, selection of exceptional young or young-at-heart, urban, i
Slide 20: Foray
FORAY ABOUT: CONSUMER PROFILE: Foray is an accessible entry point Curious but less knowledgeable about cannabis, these novice for anybody – at any stage of their consumers are increasingly interested in both the physical and cannabis journey. Designed for the mental benefits from cannabis. They are
Slide 21: Dosecann
DOSECANN ABOUT: CONSUMER PROFILE: Backed by science and Older and more established, these consumers are primarily seeking advanced research and cannabis for functional pain relief rather than the mental intoxicating development, Dosecann effects. They are interested in the health & wellness benefits
Slide 22: Robinsons
ROBINSONS ABOUT: CONSUMER PROFILE: Small-batch, hand-tended and These consumers tend to skew male in their mid to late 30s and they live in driven by an unwavering urban cities with their families. They’re experts in their field of work and commitment to craftsmanship, have a general appreciation fo
Slide 23: Path to Profitability
PATH TO PROFITABILITY 1. SG&A reductions to match the scale of Canadian operations 2. Capex significantly decreased in 2020 3. Increasing revenues and gross margin ✓ Continue to lead in Cannabis 2.0 ✓ Focused expansion into Cannabis 1.0 ✓ Continue to improve executional excellence ✓ Bring consumer-f
Slide 24: Capitalization Table
CAPITALIZATION TABLE AMOUNT ($ MILLIONS) AMOUNT (UNIT) PERCENTAGE Common Shares Outstanding1 $192.9 642.90M 71.2% Stock Options (weighted average exercise price of $0.865)2 $36.34 42.01M 4.7% Warrants (weighted average exercise price of $0.771)3 $23.14 30.03M 3.3% Imperial Brands Convertible Debentu
Slide 25: Board of Directors
BOARD OF DIRECTORS Genevieve Young Hugo Alves Troy Grant Vikram Bawa Conrad Tate Chair CEO and Director Independent Director Independent Director Director Genevieve is the President and Chief Hugo has played a key role in Since 2000, Troy has held senior Vikram is a senior global marketing Conrad jo
Slide 26: Auxly Cannabis Group Contact
Auxly Cannabis Group 777 Richmond St W Unit002 Toronto Ontario M6J0C2 Investor Relations Direct Line 1 647 812 0121 Facsimile Line 1 855 669 7881 Email [email protected]
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