Cresco Labs, Inc. · CSE:CL
Cresco Labs — Q1 2023 Earnings Presentation
19 slides from Cresco Labs's earnings presentation, May 2023
Slide 1: Creating a New Leader in Cannabis
CREATING A NEW LEADER IN CANNABIS First Quarter 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains “forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward
Slide 3: Cresco Labs Today
CRESCO LABS TODAY Leading wholesaler of branded cannabis products and highly productive retailer #1 Share 64 $23B in 3 $B+ Markets Operating Retail Locations2 Addressable Market1 3,200+ 4.6M ~$750M Transactions Annually FD Market Cap Employees as of 5/24/23 13 1,600+ $194M Dispensaries Selling Brand
Slide 4: Creating a New Leader in Cannabis
CREATING A NEW LEADER IN CANNABIS INDUSTRY LEADERSHIP KEY GROWTH PILLARS: SUPERIOR G GR ROOWWI I NN GG F OO RR YYOOU U ESTABLISHED IN THE LARGEST AND FASTEST-GROWING MARKETS ACROSS THE U.S. MARKET ACCESS PROVEN MARKET AND CATEGORY SHARE LEADERSHIP, THE STRONGEST BRANDS IN CANNABIS & LEADING RETAIL D
Slide 5: The New Cresco Labs
THE NEW CRESCO LABS CRESCO LABS PRO FORMA THE MOST INVESTABLE FOOTPRINT IN CANNABIS 2025 MARKET POTENTIAL PRO FORMA FOOTPRINT OF 18 U.S. MARKETS 1 STATES WITH RETAIL GRO WIN G FOR ALL 10 OF BDSA’S TOP 10 LARGEST MARKETS 2 * * 11 STATES WITH >$1B IN ANNUAL SALES 2 ** * * Y OU * * * * *** ACCESS TO OV
Slide 6: Superior Market Access
SUPERIOR MARKET ACCESS GROWTH TODAY… …TOMORROW… AND IN THE FUTURE GRO WIN G FOR FLORIDA, MARYLAND, ARIZONA, CALIFORNIA, COLORADO, NEW JERSEY, NEW YORK, OHIO, PENNSYLVANIA, ILLINOIS, MASSACHUSETTS, MICHIGAN VIRGINIA MISSOURI Y OU $17B 1 TOTAL ADDRESSABLE MARKET: 2022 vs. 2025 $29B 1 6 6
Slide 7: Pro-Forma State-by-State Asset Summary
PRO-FORMA STATE-BY-STATE ASSET SUMMARY GRO WIN G FOR Y OU 7
Slide 8: America's Leading Cannabis Brands
AMERICA’S LEADING CANNABIS BRANDS 8
Slide 9: Proven Depth in Wholesale
PROVEN DEPTH IN WHOLESALE T h e n a t i o n ’s l e a d i n g wh o l e s a l e r, wi t h t h e m o s t p o p u l a r c a n n a b i s b r a n d s i n A m e r i c a LEADING PORTFOLIO OF BRANDS 1 #1 BRANDED WHOLESALER BEST GROW I NG #1 SELLING FLOWER PORTFOLIO FOR BETTER SELLING CONCENTRATES YOU #1 PORT
Slide 10: Highly Productive Retailer
GRO WIN G FOR HIGHLY PRODUCTIVE RETAILER Y OU WRIGLEYVILLE CHICAGO, IL 10
Slide 11: Proven Depth in Retail
PROVEN DEPTH IN RETAIL Pro-Forma LARGEST RETAIL SUSTAINED GROWTH FOOTPRINT (OUTSIDE FL) AT SCALE 2.3x GRO WIN G FOR ● 86 ● Y OU ● 150 64 ● Sunnyside* Columbia Care Pro Forma Pre-Divestitures 11
Slide 12: Balanced Economics
BALANCED ECONOMICS REVENUE DIVERSIFICATION REVENUE SCALE REVENUE MIX GRO WIN G FOR 70% 8 >70% 70% 14% Y OU <50% 56% 2 2021 2022 2023 2024 2025 Cresco Labs Pro Forma Cresco Labs Pro Forma Tier 1 FY 2022 2023 Est FY 2022 FY 2022 Average Top 2 Top 2 12
Slide 13: Commitment to Our Communities
COMMITMENT TO OUR COMMUNITIES COMMUNITY BUSINESS I N C U B ATO R E D U C AT I O N A N D W O R K F O R C E DEVELOPMENT R E S T O R AT I V E J U S T I C E 13
Slide 14: Financial Results – 1Q 2023
FINANCIAL RESULTS – 1Q 2023 GROWING FOR YOU 14
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS Share Class (# in millions) as of 3/31/2023 Balance ($Millions) as of 3/31/2023 Super Voting Shares 0.5 Debt Outstanding (ST) $28.1 Redeemable Units 104.3 Debt Outstanding (LT) 470.9 Subordinated Voting Shares 290.0 Long-term Leases 152.3 Proportionate Voting Shares (as 19.9 Tot
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS For the Three Months Ending For the Three Months Ending 3/31/2023 Q1’2023 Q1'2022 3/31/2023 Q1’2023 Q1’2022 Net (loss) ($27.8) ($23.7) Revenue, net $194.2 214.4 Depreciation and amortization 13.0 11.0 Cost of goods sold (COGS) 108.3 107.1 Interest expense, net 15.5 14.4 Income t
Slide 17: Transaction Overview
CRESCOLABS © ColumbiaCare
Slide 18: Transaction Overview
TRANSACTION OVERVIEW ⚫ Cresco Labs to acquire all of the issued and outstanding common shares and proportional voting shares of Columbia Care ⚫ Pro forma ownership of approximately 65% Cresco Labs and 35% Columbia Care, on a fully diluted in-the-money basis ⚫ All-stock transaction valued at US$3.64
Slide 19: Thank You
THANK YOU Investors: Megan Kulick – SVP Investor Relations [email protected] Media: Jason Erkes – Chief Communications Officer [email protected] For General Inquiries: 312-929-0993 [email protected] 19