PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria

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PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
PREMIUM MEDICAL CANNABIS
     POWERED BY SUNLIGHT
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
Q2 2018
Investor Presentation
        PREMIUM January  10, 2018
                 MEDICAL CANNABIS
                  POWERED BY SUN
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
DISCLAIMER

This documentation is a presentation (the “Presentation”) of general background information about Aphria Inc.’s (“Aphria”) activities current as of January 10, 2018, unless stated otherwise. It is information in a
summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or
needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.

This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for securities nor shall it or any part of it form the basis of or be relied on in connection with, or
act as any inducement to enter into, any contract or commitment whatsoever. Recipients of this Presentation who are considering acquiring securities of Aphria are reminded that any such purchase or subscription
must not be made on the basis of the information contained in this Presentation but are referred to the entire body of publicly disclosed information regarding Aphria.

The information contained in this Presentation is derived solely from management of Aphria and otherwise publicly available information concerning Aphria and does not purport to be all-inclusive or to contain all
the information that an investor may desire to have in evaluating whether or not to make an investment in Aphria. The information has not been independently verified and is subject to material updating, revision
and further amendment, and is qualified entirely by reference to Aphria’s publicly disclosed information.

No representation or warranty, express or implied, is made or given by or on behalf of Aphria or any of its affiliates, directors, officers or employees as to the accuracy, completeness or fairness of the information or
opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. Aphria does not undertake or agree to update this Presentation or to correct any
inaccuracies in, or omissions from, this Presentation that may become apparent. No person has been authorized to give any information or make any representations other than those contained in this Presentation
and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The information and opinions contained in this Presentation are provided as at the date of this
Presentation. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser or
tax adviser for legal, financial or tax advice.

Certain statements in this Presentation may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of applicable securities laws. Forward-
looking information may relate to Aphria’s future outlook and anticipated events or results and may include statements regarding Aphria’s financial results, future financial position, expected growth of cash flows,
business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, potential synergies, industry trends and growth opportunities. Often but not always, forward-looking information
can be identified by the use of words such as “anticipate”, “believe”, “expect”, “project”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “might”, “target”, “plan” and other similar expressions or
variations (including negative variations) of such words and phrases. Forward-looking information contained in this Presentation is based on certain assumptions regarding expected growth, results of operations,
performance, industry trends and growth opportunities.

While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of Aphria to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative
and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical
marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria to implement its business strategies; competition; crop failure; currency and interest rate fluctuations, and the other
risks discussed under the heading “Risk Factors” in Aphria’s Annual Information Form dated January 10, 2018. The foregoing factors are not intended to be exhaustive.

Although Aphria has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date hereof and Aphria and its directors, officers
and employees disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on forward-looking
statements due to the inherent uncertainty therein. All forward-looking information is expressly qualified in its entirety by this cautionary statement.

Forward-looking information and other information contained herein concerning management’s general expectations concerning the medical marijuana industry are based on estimates prepared by management
using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to
be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any
misstatements regarding any industry data presented herein, industry data is subject to change based on various factors.

This Presentation may not be reproduced, further distributed or published in whole or in part by any other person. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in any
other jurisdiction which prohibits the same except in compliance with applicable laws. Any failure to comply with this restriction may constitute a violation of applicable securities law. Recipients are required to
inform themselves of, and comply with, all such restrictions or prohibitions and Aphria does not accept liability to any person in relation thereto.

                                                                                                                                                                             APHRIA INC. | Q2 INVESTORS PRESENTATION               1
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
Investment
highlights
                                 License to sell
                               medical marijuana
High growth                     provides critical
                                barrier to entry
potential
                  Largest
                footprint in                            Low costs
               the industry                              underpin
                                                     attractive cash
                                                      flow potential

               Established                          Significant near
              operations and                         and mid-term
               experienced                          opportunities for
               management                               growth
                                     Well
                                  capitalized
                                                         APHRIA INC. | Q2 INVESTORS PRESENTATION   2
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
Highly experienced
management team

Vic Neufeld                                  Cole Cacciavillani                                John Cervini
Chief Executive Officer                      Co-Founder &                                      Co-Founder &
                                             VP. Growing Operations                            VP. Infrastructure + Technology

20+           Years in pharma                35+           Years in agri-business              20+           Years in agri-business

CEO of Jamieson Laboratories 1993-2014       Greenhouse industry pioneer and veteran           Fourth generation greenhouse grower

Demonstrated vision, growth & performance    First-hand knowledge of Aphria’s greenhouses      Proven growth and expansion track record

                                            Seed shares represent ~ 15% of outstanding float

                                                                                                         APHRIA INC. | Q2 INVESTORS PRESENTATION   3
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
Aphria at a glance
                                                                   BRANDS
                                                                   • Aphria                 • hiku

GROWING
                                                                   • [Recreational brand]   • Rx Princeps

                                                                   • Broken Coast           • Tokyo Smoke

OPERATIONS
Leamington, ON (387 acres)
Talbot Street campus (87)    INNOVATION                                                     INVESTMENT
Mersea Road campus (300)     • Edibles                                                      • Althea
                             • Nutraceuticals                                               • CannaRoyalty

                             • Soft gels                                                    • Green Acre Capital
Duncan, BC (5 acres)
                             • Topicals                                                     • Green Tank Holdings
Broken Coast                                                                                • Hiku Brands Company
                             • Vape pens

                                                                                            • Liberty Health Sciences

                                                                                            • MassRoots

                                                                                            • Resolve Digital Health, Inc.

                                                                                            • Scientus Pharma

                                                                                            • Tetra Bio-Pharma

                                            SCIENCE                        TECHNOLOGY
                                            • CannPal                      • Agrinomix
                                            • Medlab (Australia)           • Bewhere
                                            • Tetra Bio-Pharma             • Resolve Digital Health

                                                                                      APHRIA INC. | Q2 INVESTORS PRESENTATION   4
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
One of the lowest cost producers
in the Canadian industry

  4.00

  3.50

  3.00
                                                                                                 2.23                                                                                     2.13
  2.50
                                                1.85                               1.73
  2.00                                                                                                                                      1.67          1.61
                                                                                                                                                                                1.45
                                 1.31
  1.50                                                                                                                               1.11          0.95

  1.00

  0.50

  0.00
                                     Q2 - 17                                           Q3 - 17                                         Q4 - 17       Q1 - 18                        Q2 - 18

                       Cash                      All-in

 All-in costs equal to cost of sales (excluding any fair value of biological assets adjustments) divided by grams sold in quarter.
 Cash costs equal to cost of sales less amortization reported in cost of sales, all divided by grams sold in quarter.

                                                                                                                                                                 APHRIA INC. | Q2 INVESTORS PRESENTATION   5
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
Unique drivers
of cost savings

CAPEX benefit
NEW GREENHOUSE BUILD
OR RETROFIT
$55 square foot                                      THEM   APHRIA

INDOOR GROW
$250 - $300 square foot

Production Costs
FERTILIZER SAVINGS               ELECTRICAL SAVINGS                                  =
•   Aphria’s cost - $0.005 / L   •   	Aphria’s annual electrical
                                       costs $5.50 / sq. ft.
•	Competitor’s fertilizer
   cost - $0.22 / L              •   	Indoor grower’s annual
                                       electrical costs $65.00 / sq. ft.
•	Aphria’s costs are
   2% of our competitors         •   	Aphria’s costs are
                                       8% of our competitors*
    3X – hours usage 2X – light density 2X – Cooling
    * - Ontario based                                                      APHRIA INC. | Q2 INVESTORS PRESENTATION   6
PREMIUM MEDICAL CANNABIS POWERED BY SUNLIGHT - Aphria
Focus on quality
and safety

         Our Seed-to-Sale Certified quality promise
         is our commitment to protecting the health
         and safety of Canadians by ensuring that
         we only sell clean, safe and pure cannabis
         100% of the time. No exceptions.
         Our comprehensive quality management
         program has over 500 steps and was
         adopted from the highly restricted and
         regulated NHP and OTC industries and go
         above and beyond the GPP requirements
         of the ACMPR.

                                                 APHRIA INC. | Q2 INVESTORS PRESENTATION   7
Ample capacity to
meet growing demand

           APHRIA INC. | Q2 INVESTORS PRESENTATION   8
GrowCo

Strategic relationship with
Double Diamond Farms
		Created GrowCo (51% owned by Aphria,
•

  49% owned by Double Diamond)
		To purchase 100 acre farm owned by Double Diamond
•

		Almost 32 acres of state-of-the-art, Dutch style newly built
•

  greenhouses plus 72,000 square feet of infrastructure
  (first planted crop will be cannabis)
		Supply agreement to supply at least 120,000 kgs of dried
•

  cannabis to Aphria
		Requires $80 - $100 million in capital to purchase farm
•

  (at appraised value) plus retrofits for growing cannabis, funded by
  $20 million in seed capital by the Parties. Remainder to financed
  by loans from a commercial lender, with Aphria to lend any shortfall.

                                                                          APHRIA INC. | Q2 INVESTORS PRESENTATION   9
Overview of
Broken Coast

Established in 2015, Broken Coast is a profitable
Licensed Producer based in British Columbia with
a proven track record of premium cannabis production
ESTABLISHED BRAND AND HIGHLY-REGARDED                                      LOYAL AND RAPIDLY GROWING
PREMIUM PRODUCT                                                            REPEAT CUSTOMER BASE
•   	
     Consistently top ranked on well-known review                         •	
                                                                             Over 10,000 registered
     site Lift.co; has won multiple product and                                patients with 1,000 net new
     customer service based awards at the                                      applications each month
     Canadian Cannabis Awards
                                                                           WELL-POSITIONED FOR FUTURE
EXTENSIVE STRAIN LIBRARY                                                   RECREATIONAL MARKET
•   	
     World-class bank of genetics with                                    •	
                                                                             Plans for over 10,500 kg
     +1,000 seeds available for commercialization                              of premium indoor
                                                                               production capacity
PROPRIETARY HYDROPONICS PROCESS
•   	
     Fully licensed, purpose-built, indoor facility
     with a highly automated grow system

LOW-COST, INDOOR CULTIVATION
•   	
     High margin production with all-in cost
     per gram1 of $2.20

POSITIVE ADJUSTED EBITDA SINCE 20151

1
    Non-GAAP measure defined in the Company’s Management Discussion & Analysis                              APHRIA INC. | Q2 INVESTORS PRESENTATION   10
Proforma market                                                                                                                                                       All calculated values used within the below
                                                                                                                                                                 charts are based on cumulative totals from each
                                                                                                                                                          company’s financials for their respective most recently

positioning
                                                                                                                                                               reported operating periods available on SEDAR as
                                                                                                                                                           of January 10, 2018. Proforma numbers are, in part,
                                                                                                                                                             based on management’s estimate of Broken Coast’s
                                                                                                                                                                            revenue and adjusted EBITDA for the
                                                                                                                                                                                    period ending Dec 31, 2017.

TRAILING REVENUE (C$000s)
$70,000

$60,000
$50,000

$40,000

$30,000
$20,000

$10,000

     $0
              COMPETITOR #4               COMPETITOR #3               COMPETITOR #2                    APHRIA                    PROFORMA                 COMPETITOR #5               COMPETITOR #1

           Trailing revenue represents the last twelve months revenue derived from each Company’s ongoing regular business activities and does not include interest income or fair value changes in investments

TRAILING ADJUSTED EBITDA (C$000s)
$15,000

$10,000
 $5,000

     $0

 -$5,000
-$10,000

-$15,000

-$20,000
              COMPETITOR #1               COMPETITOR #2               COMPETITOR #4               COMPETITOR #3                     APHRIA                COMPETITOR #5                  PROFORMA

           Adjusted EBITDA is a non-GAAP measure defined in the Company’s Management Discussion & Analysis. Trailing adjusted EBITDA represents the
           last twelve months adjusted EBITDA derived from each Company’s ongoing regular business activities and does not include interest income
           or fair value changes in investments

                                                                                                                                                              APHRIA INC. | Q2 INVESTORS PRESENTATION             11
Overview of
Nuuvera

Established in 2017, Nuuvera is an international company
with a global strategy built on anticipating future markets
and establishing the infrastructure and partnerships to
serve them with medical-grade cannabis.

CAPITALIZES ON GLOBAL FOOTPRINT              ADDS HIGHLY-EXPERIENCED,
                                             GLOBAL MANAGEMENT TEAM
•   International partnerships, supply
    and sale agreements                      •   International bench strength
•   Maritimes MOU                            •   Strong relationships and expertise
                                                 in international markets
ACQUISITION DELIVERS COMPLEMENTARY
CORE COMPETENCIES
•   Extraction capabilities, distillation,
    cannabinoid purification and
    formulation expertise
•   Supply chain efficiencies
•   Enhanced product
    development capabilities

                                                                                      APHRIA INC. | Q2 INVESTORS PRESENTATION   12
Capitalizing on Nuuvera’s
existing global footprint

Aphria becomes global medical
cannabis leader with presence in
                                                     GERMANY                                                     URUGUAY
11 countries – and counting:                         •	Shortlisted by BFARM for a contract                      Supply agreement
                                                        to grow, process, store and deliver up                   (30kgs/month of
                                                        to 6,000kg of cannabis                                   CBD isolate)

                                                     •	Supply relationship with significant
                                                                                                                 LESOTHO
                                                        pharmaceutical distribution company
                                                                                                                 Supply agreement
                                                        servicing over 13,000 pharmacies
                                                                                                                 (100kgs/month of extract)
                                                        (1,200kgs initial order)

                                                     ITALY                                                       ISRAEL
                                                     Owner of Italian subsidiary with                            Established presence
                                                     1 of 7 import/distribution license                          and relationships

       CANADA
                                                     SPAIN                                                       UNITED KINGDOM
       Cultivation & sale licenses
                                                     •	LOI for JV with local partner, Cafina,                   Import agreement for
       230,000kg capacity
                                                        included supply agreement                                pharma-grade CBD isolate
                                                                                                                 (into 30kg/month)
                                                     •	LOI to acquire GMP facility
       UNITED STATES
       Investments in Liberty Health Sciences
                                                     MALTA                                                       CANADA
                                                     •	LOI for JV with local partners                           MOU for New Brunswick
                                                                                                                 (2,500kg)
                                                     •	LOI for acquisition of GMP facility
       AUSTRALIA
       •	25% ownership in Althea Company Pty Ltd.
          including supply agreement

       •	Supply agreements with Medlab Clinical

                                                                                                 APHRIA INC. | Q2 INVESTORS PRESENTATION     13
Leveraging two-pronged
sales strategy

Unique cost structure
enables Aphria to capitalize
on wholesale advantages

RETAIL                             WHOLESALE
		Strong distribution foundation
•
                                   •		Sale of bulk product to other
                                      H.C. Licensed Producers and
		Increasing patient sales
•
                                      Licensed Dealers
		Highly profitable
•
                                   •		(~50% margin but no costs
  (~ 70% margin with
                                      below the line)
  30% costs below the line)

                                                                      APHRIA INC. | Q2 INVESTORS PRESENTATION   14
Investment
highlights
                                 License to sell
                               medical marijuana
High growth                     provides critical
                                barrier to entry
potential
                  Largest
                footprint in                            Low costs
               the industry                              underpin
                                                     attractive cash
                                                      flow potential

               Established                          Significant near
              operations and                         and mid-term
               experienced                          opportunities for
               management                               growth
                                     Well
                                  capitalized
                                                         APHRIA INC. | Q2 INVESTORS PRESENTATION   15
APPENDIX A

Financials

             APHRIA INC. | Q2 INVESTORS PRESENTATION   16
Q2 Results

                                          Q2 - 2018   Q1 - 2018

 Revenue (000’s)                      $      8,504    $   6,120

 Kilograms sold                            1,237.0        852.0

 “All-in” cost of goods sold / gram   $       2.13    $    1.61

 Cash cost to produce / gram          $       1.45    $    0.95
 (Aphria’s definition)

 Adjusted gross margin                        68%          78%

                                                                  APHRIA INC. | Q2 INVESTORS PRESENTATION   17
Reconciling net income
and earnings per share
(Quarter 2 - ended November 30, 2017)
(Unaudited - In thousands of Canadian dollars)

Revenue                                              $      8,504

  Production costs                                 		       2,746

Gross profit before fair value adjustments         		       5,758

  Fair value adjustment on sale of inventory       		       2,671
  Fair value adjustment on growth of biological assets 		   (3,115)

Gross profit                                       		       6,202
                                                                      Under IFRS margins
Expenses
  General and administrative                       		       1,973     are 72.9% after excluding
  Share-based compensation
  Selling, marketing and promotion

                                                            2,200
                                                            2,819
                                                                      non-cash IFRS adjustments
  Amortization                                     		         276     Gross Margins are 67.7%
  Research and development                         		          80
                                                   		       7,348

Income of operations                               		       (1,146)

Other Items                                        		       7,898
Net Income before income taxes                     		       6,752

Income taxes                                       		         297

Net income                                           $      6,455

Weighted average number of common shares – basic   		138,839,530

Earnings per share – basic                           $       0.05
                                                                                      APHRIA INC. | Q2 INVESTORS PRESENTATION   18
Equity
STRONG WELL-CAPITALIZED
BALANCE SHEET
(Quarter 2 - ended November 30, 2017)

STRONG BALANCE SHEET
WITH $171.9 MILLION                            •    Working capital: $178.8 million
IN CASH AND NEAR
CASH POSITION                                  •	
                                                 Inventory: 2,346 Kilograms (or kilogram equivalents)

CAPITAL STRUCTURE
		                                                   Amount         Percentage                              Expiration

Common Shares Outstanding                      151,871,247             93.1%                                           -

Stock Options @ $0.60                              2,500,000             1.5%                            June 2,   2019
Stock Options @ $0.85 - $1.19                        855,000             0.5%         October 2017 to September    2020
Stock Options @ $1.20 - $1.67                        621,669             0.4%            November 2018 to June     2021
Warrants - RTO @ $1.50                             2,880,550             1.8%                       December 2,    2019
Warrants - Bought Deal @ $1.75                       387,503             0.2%                     December 10,     2018
Warrants @ $3.14                                     200,000             0.1%                    September 26,     2021
Stock Options @$3.00 - $9.05                       3,886,367             2.4%          November 2, 2019 to June    2022

Fully Diluted Shares as at November 30, 2017   163,202,336            100.0%
Bought Deal closed January 8, 2018               8,363,651
Shares issued on purchase of Broken Coast       14,373,675
Shares issued on purchase of Nuuvera            34,202,113        Fully Diluted
Fully Diluted Shares                           220,141,775

                                                                                                         APHRIA INC. | Q2 INVESTORS PRESENTATION   19
Percentage of cash deployed
on OPEX cash burn

                                            48.7%

                                                                                                                                                 25.4%

                                                                             22.3%

                                                                                                               13%

            1.3%

          APHRIA                     COMPETITOR #1                    COMPETITOR #2                     COMPETITOR #3                   COMPETITOR #4

      OPEX cash burn represents the net amount of cash used in order to fund the Company’s ongoing regular business activities

      The Percentage of cash deployed on OPEX represents the net amount of cash used to-date in order to fund the
      Company's ongoing regular business activities as a percentage of the total cash deployed

      All calculated values used within the table above are based on cumulative totals from each company's first publicly reported financials
      through their most recently reported operating period available on SEDAR as of January 10, 2018

                                                                                                                                                APHRIA INC. | Q2 INVESTORS PRESENTATION   20
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