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Disclaimer Forward-looking statements Certain statements contained in this presentation may constitute forward-looking information and statements. All statements in this presentation, other than statements of historical fact, that address events or developments concerning SNDL Inc. (“SNDL" or the "Company“) that SNDL expects to occur are "forward-looking information and statements". Forward-looking information and statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "propose", "potential", "targeting", "intend", "could", "might", "should", "believe", "budgeted", "scheduled“ and "forecasts", and similar expressions and variations (including negative variations). In particular, but without limiting the foregoing, this presentation contains forward-looking information and statements pertaining to the following: SNDL’s ability to raise future capital through debt or equity financing transactions, and our ability to efficiently deploy the capital raised through such transactions; our ability to successfully implement our cost and asset optimization initiatives; the continued development and growth of the demand and markets for medical and adult-use cannabis; the competitive conditions of the industry and the expected number of customers using our products; the maintenance of our existing licenses and the ability to obtain additional licenses as required; our ability to establish and market our brands within our targeted markets and compete successfully; our ability to produce and market additional products as regulations permit; the number of flowering rooms and combined production capacity therefrom that we expect to have; our growth strategies, including plans to sell edibles and other forms of cannabis; the timing and the amount of capital expenditures related to the maintenance and any expansion of our facilities; the outcome of medical research by our partners and the acceptance of such findings in the medical community; our ability to attract and retain key employees; our ability to manage growth in our business; our ability to identify, successfully execute, manage and realize a return on strategic partnerships, joint ventures, strategic alliances, debt and equity investments as well as the costs and benefits associated with such initiatives, including the expected return on any investments; and the volatility in the price of our common shares. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this presentation. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Such risks and uncertainties may be discussed in the Company’s materials filed with the Canadian and U.S. securities regulatory authorities from time to time. All of the forward-looking information and statements contained in this presentation are qualified by these cautionary statements. The reader of this presentation is cautioned not to place undue reliance on any forward-looking information and statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. For more information in respect of such forward-looking formation and statements, please refer to SNDL’s annual information form for the year ended December 31, 2024 as well as SNDL’s audited consolidated financial statements and the notes thereto for the years ended December 31, 2024 and December 31, 2023, and the accompanying management’s discussion and analysis, including (in each case, as applicable) the sections thereof entitled “Forward-Looking Information”. Non-IFRS Measures Certain financial measures in this presentation, including system-wide retail sales, adjusted Operating Income, adjusted EBITDA from continuing operations, free cash flow and gross margin before fair value adjustments, are non- IFRS measures. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures provided by other companies. These non-IFRS financial measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS. For more information in respect of these non-IFRS financial measures, please refer to SNDL’s audited consolidated financial statements and the notes thereto for the years ended December 31, 2024 and December 31, 2023, and the accompanying management’s discussion and analysis, including the sections thereof entitled “Specified Financial Measures”. Important Information Concerning this Presentation Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to buy any security of the Company or any other entity in the United States or in any other jurisdiction. The contents of this presentation have not been approved or disapproved by any securities or regulatory authority in Canada, the United States or any other jurisdiction. In addition, certain information contained in this presentation is based upon information from press releases, independent industry sources and other publications and websites. None of these sources have provided any form of consultation, advice or counsel regarding any aspect of, or is in any way whatsoever associated with, SNDL. Actual outcomes may vary materially from those forecast in such press releases, reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. While SNDL believes this data and information to be reliable, such data and information is subject to variations and cannot be verified with complete certainty. SNDL has not independently verified any of the data or information from third party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such sources. SNDL cannot and does not provide any assurance as to the accuracy or completeness of such information. This document is being supplied to you solely for your information and may not be reproduced or forwarded to any other person or published (in whole or in part) for any purpose. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated. 0
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March 2025 Corporate Presentation NASDAQ: SNDL FOURTH QUARTER & FULL YEAR 2024
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5 2 2024 Company Highlights RECORD NET REVENUE RECORD GROSS PROFIT AND GROSS MARGIN POSITIVE FREE CASH FLOW Revenue growth in Q4 and full year 2024 driven by Cannabis, which consistently expanded revenue in the last twelve quarters The increase in gross margin was largely driven by productivity initiatives in the Cannabis Operations segment, which achieved positive gross profit for the fourth quarter in a row SNDL showcased positive Free Cash Flow with continued operational improvements and better working capital management, also delivering positive free cash flow for the 2024 calendar year Memo: Comparisons (e.g. increase, improvement,…) are from the fourth quarter of 2023
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5 3 Q4 Financial Highlights $257.7MM $9.2MM Increase YOY 3.7% Increase YOY Net Revenue $68.8MM $11.5MM Increase YOY 20% Increase YOY Gross Profit 26.7% 3.6pp Increase YOY Gross Margin $(60.5)MM $(33)MM Decrease YOY (123)% Decrease YOY Adj. Operating Income1 $11.6MM $10.2MM Increase YOY +700% Increase YOY Free Cash Flow2 1Adjusted operating income (loss) is defined as operating income (loss) less restructuring costs (recovery), goodwill and intangible asset impairments and asset impairments triggered by restructuring activities. 2Free cash flow is defined as the total change in cash and cash equivalents less cash used for common share repurchases, dividends (if any), changes to debt instruments, changes to long-term investments, net cash used for acquisitions plus cash provided by dispositions (if any) SNDL delivered solid results and is well- positioned for success in 2025 and beyond Financial performance shows clear operational improvements. Adjusted Operating Income impacted by $(66) million valuation adjustment of SunStream portfolio
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5 4 2024 Full Year Financial Highlights $920MM $11.4MM Increase YOY 1.3% Increase YOY Net Revenue $240MM $49.9MM Increase YOY 26% Increase YOY Gross Profit 26.1% 5.2pp Increase YOY Gross Margin $(86)MM $12.0MM Increase YOY 12% Increase YOY Adj. Operating Income1 $8.9MM $70MM Increase YOY +115% Increase YOY Free Cash Flow2 1Adjusted operating income (loss) is defined as operating income (loss) less restructuring costs (recovery), goodwill and intangible asset impairments and asset impairments triggered by restructuring activities. 2Free cash flow is defined as the total change in cash and cash equivalents less cash used for common share repurchases, dividends (if any), changes to debt instruments, changes to long-term investments, net cash used for acquisitions plus cash provided by dispositions (if any) SNDL delivered solid results with sequential improvement in profitability and achieved positive free cash flow for full year 2024
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SNDL achieved positive Free Cash Flow, with significant gross profit expansion and continued to see solid net revenue growth in both Cannabis segments, demonstrating its consistent ability to optimize performance and drive profitability year- over-year These results not only reinforce SNDL’s positive trajectory towards sustained profitability but also highlight the Company’s progress toward achieving sustainable positive free cash flow, and commitment to shareholder value creation 5 Fourth Quarter 2024 Financial Performance Consolidated Financial Results 0 100,000 200,000 300,000 2021 2022 2023 2024 Net Revenue ($000s) Q1 Q2 Q3 Q4 3.7% Increase YOY (20,000) - 20,000 40,000 60,000 80,000 2021 2022 2023 2024 Gross Profit ($000s) Q1 Q2 Q3 Q4 20% Increase YOY (100,000) (80,000) (60,000) (40,000) (20,000) - 2021 2022 2023 2024 Adj. Operating Income ($000s) Q1 Q2 Q3 Q4 (80,000) (70,000) (60,000) (50,000) (40,000) (30,000) (20,000) (10,000) - 10,000 20,000 30,000 2021 2022 2023 2024 Free Cash Flow ($000s) Q1 Q2 Q3 Q4 Full Year 2024 Increase 1.3% YOY Full Year 2024 Increase 12% YOY Full Year 2024 Increase 26% YOY Full Year 2024 FCF of $9MM
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6 Net Revenue and Gross Profit Contribution by Segments Consolidated Financial Results 57.3 0.4 (0.2) 11.2 68.8 Q4 2023 Liquor Retail Cann. Retail Cann. Ops Q4 2024 Gross Profit ($Millions) 248.5 (5.4) 8.0 11.0 (4.4) 257.7 Q4 2023 Liquor Retail Cann. Retail Cann. Ops Corporate Q4 2024 Net Revenue ($Millions) +3.7% NOTES All numbers are for the fourth quarter of 2024, ending December 31, 2024 Corporate Net Revenue reflects elimination associated with the Cannabis Operations sales to the provincial boards that are expected to be subsequently repurchased by the Company’s licensed retail subsidiaries for resale +20% Q4 190.4 5.12.4 42.4 240.3 FY 2023 Liquor Retail Cann. Retail Cann. Ops FY 2024 Gross Profit ($Millions) 909.0 (23.6) 21.7 22.4 (9.0) 920.4 FY 2023 Liquor Retail Cann. Retail Cann. Ops Corporate FY 2024 Net Revenue ($Millions) +1.3% +26% Full Year
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(27.1) 2.2 6.9 12.2 (58.5) 3.9 Q4 2023 Liquor Retail Cann. Retail Cann. Ops Investments Corporate Q4 2024 Adj. Operating Income ($Millions) 7 Adjusted Operating Income and Free Cash Flow Contribution by Segments Consolidated Financial Results 1.4 20.1 (10.9) 1.0 Q4 2023 Earnings Working Capital Other Q4 2024 Free Cash Flow ($Millions) (60.5) 11.6 (123)% +700% NOTES All numbers are for the fourth quarter of 2024, ending December 31, 2024 Q4 Full Year (98.2) 10.1 8.4 55.9 (61.8) (0.7) FY 2023 Liquor Retail Cann. Retail Cann. Ops Investments Corporate FY 2024 Adj. Operating Income ($Millions) (60.9) 47.5 22.4 (0.1) FY 2023 Earnings Working Capital Other FY 2024 Free Cash Flow ($Millions) (86.1) 8.9 +12% +115%
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H1'24 Q3'24 Q4'24 FY'24 Net Income (9.6) (19.3) (67.2) (96.2) Non-Cash add backs 24.3 28.6 89.1 142.0 Income from Equity-Accounted Investees - 10.7 - 10.7 Inventory Change (Inc)/Dec (3.6) 4.8 4.7 6.0 Other WC change (Inc)/Dec (2.5) (3.9) (2.7) (9.0) Capex & Lease payments (20.7) (11.7) (12.2) (44.6) Total Free Cash Flow (12.0) 9.2 11.6 8.9 FCF Breakdown ($Millions) 8 First Quarter Financial Results NOTES (*) Impacted by seasonality (**) Includes impact of Investments fair market value adjustment of $65.7M (non-cash item) (***) Normalized including pre-acquisition numbers (25) (20) (15) (10) (5) 0 5 10 15 20 25 30 Q1 Q2 Q3 Q4 Inventory Build by Retail Segments*** ($Millions) 2022 2023 2024 Strong Q4 2024 Free Cash Flow underpinned by inventory improvements and higher OI. Delivered full year positive FCF * ** **
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Liquor Retail 9 2024 Liquor Retail Results • Category decline impacted by lower store traffic • Full year Private label sales increased 9.1% year-over- year, +14.8pp faster than national brands • Improvement in gross profit was mainly driven by product mix management, pricing and procurement productivity initiatives NOTES Excluding corporate cost allocation Comparisons are from the fourth quarter and full year of 2023 Q4 Full Year Abs % Net Revenue 154.1 (5.4) (3.4)% Gross Profit 38.2 (0.2) (0.4)% Gross Margin 24.8% 0.7pp Adj. Operating Income 12.3 2.2 21.8% ($ Millions) 2024 Change vs 2023 Abs % Net Revenue 555.3 (23.6) (4.1)% Gross Profit 139.7 2.4 1.8% Gross Margin 25.2% 1.4pp Adj. Operating Income 34.8 10.1 41.1% ($ Millions) 2024 Change vs 2023
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Cannabis Retail 10 2024 Cannabis Retail Results NOTES Excluding corporate cost allocation Excludes franchise system-wide sales Comparisons are from the fourth quarter and full year of 2023 • Full year Same store sales growth of 3.5% year-over- year • Additional Net revenue growth from new store openings and acquisitions • Outpacing the industry driving full year market share gains +0.6pp Q4 Full Year Abs % Net Revenue 83.2 8.0 10.7% Gross Profit 20.5 0.4 2.2% Gross Margin 24.6% (2.0)pp Adj. Operating Income 6.0 6.9 +800% ($ Millions) 2024 Change vs 2023 Abs % Net Revenue 311.7 21.7 7.5% Gross Profit 78.8 5.1 7.0% Gross Margin 25.3% (0.1)pp Adj. Operating Income 13.3 8.4 174% ($ Millions) 2024 Change vs 2023
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Cannabis Operations 11 2024 Cannabis Operations Results NOTES Excluding corporate cost allocation Comparisons are from the fourth quarter and full year of 2023 • Net revenue growth as a result of increasing provincial board and B2B distribution driven by continued focus on consumer innovation and quality, combined with Indiva acquisition becoming market leaders in Edibles • Gross profit improvement was driven by the impact of a holistic productivity program and operational planning improvements and efficiencies Q4 Full Year Abs % Net Revenue 37.1 11.0 42% Gross Profit 10.1 11.2 +1000% Gross Margin 27.2% 31.4pp Adj. Operating Income 4.4 12.2 157% ($ Millions) 2024 Change vs 2023 Abs % Net Revenue 109.5 22.4 26% Gross Profit 21.8 42.4 206% Gross Margin 19.9% 43.5pp Adj. Operating Income 3.1 55.9 106% ($ Millions) 2024 Change vs 2023
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5 12 GROWTH PROFITABILITY PEOPLE 2024 Strategic Priorities Drive sustainable growth in our core segments • Grow and convert store count • Grow private label • Expand digital programs • Grow owned product revenue and market share • Indiva acquisition Deliver positive Free Cash Flow • Accelerate productivity programs • Expand data programs • Optimize product mix • Optimize overhead spending • Execute restructuring Create engagement & alignment through performance culture & talent development • Improve performance management • Develop talent management and engagement • Establish recognition program • Refine and action 5 SNDL’s core behaviours Strategic Priorities
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13 Strategic Priorities Q4 2024 Highlights Strategic Priorities Cannabis Retail Share gain +0.4pp Through quality of execution, ramp up of new store openings, Value Buds store conversions and BC expansion Became market leader in Edibles with Indiva Acquisition Liquor Private Label Growth 1.3% Due to additional private label offerings, specifically within the value segment, addressing overall category decline Distribution Expansion Added 78 new distribution points in the quarter to achieve 11% growth in points of distribution in full year 2024 Drive sustainable growth in our core segments GROWTH Indiva Acquisition
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14 Strategic Priorities Strategic Priorities Q4 2024 Highlights Achieve positive free cash flow PROFITABILITY Data Licensing Revenue $4.5M Combined Revenue from proprietary data licensing program from both Cannabis Retail and Liquor Retail Overhead Savings ~$5M Through prioritization, efficiencies. restructuring program and improved spend management Productivity Savings ~$8M Segment optimization, including cultivation, procurement efficiencies, and mix management Free Cash Flow ~$12M Continued inventory optimization, higher profits and focused investments
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5 15 One-time investment Annualized cost savings $11M Execution according to plan to reduce corporate overheads and improve the efficiency of the organizational structure to position the Company for future profitable growth $20M+ Q4'24 2024 2025 2026+ People Non-People $20M+ $18M $5M Savings ($Million) Full Year 2024 - Progress vs Plan • Overall Project execution • 2024 Savings $5M • Annualized Savings executed $15M • Percentage of savings executed ~75% • One-time Investment $3M On track vs plan Off track vs plan $3M Overheads Restructuring Progress
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16 Strategic Priorities Strategic Priorities Q4 2024 Highlights Create engagement & alignment through performance culture & talent development PEOPLE Strategic Talent Development Enhanced transparency around key Company KPIs and employee incentives to support a performance-based culture through annual performance reviews Employee Value Proposition Completed SNDL’s inaugural employee engagement survey to implement strategies to further enhance the employee value proposition and support retention and productivity Employee Recognition Program Continued to embed colleague and leader-led recognition tactics to celebrate achievements against SNDL’s Strategic Priorities. To date, over 600 nominations and 160 awards have been granted Total Rewards Researched the economic outlook and compensation survey data to determine total rewards strategy and roadmap
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Analyst Q&A 17