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GREEN THUMB INDUSTRIES INC.INVESTOR PRESENTATION | OCTOBER 2019
CSE: “GTII” | OTC: “GTBIF”
2
CAUTIONARY STATEMENT
ON FORWARD-LOOKING STATEMENTS: This presentation includes information, statements, beliefs and opinions which are forward-looking, and which reflect current estimates, expectations and
projections about future events, referred to herein as “forward-looking statements” or “forward-looking information”. Statements containing the words “believe”, “expect”, “continue”, “could”, “potential”, “predict”, “would”,
“intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate” or, in each case, their negative and words of similar meaning are intended to identify forward-looking statements. By their
nature, forward-looking statements involve a number of known and unknown risks, uncertainties and assumptions concerning, among other things, the Company’s anticipated business strategies, anticipated trends in the
Company’s business and anticipated market share, that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions
could adversely cause GTI’s actual results, performance or achievements to be materially different from any projected results, performance or achievements expressed or implied by the forward-looking statements. In addition,
even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results
or developments in subsequent periods. Although GTI has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking
information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this presentation is based on the Company’s
current estimates, expectations and projections, which the Company believes are reasonable as of the current date. The Company can give no assurance that these estimates, expectations and projections will prove to have
been correct. You should not place undue reliance on forward-looking statements, which are based on the information available as of the date of this document. Forward-looking statements contained in this document are made
of the date of this presentation and, except as required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances.
Historical statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In this regard, certain financial information
contained herein has been extracted from, or based upon, information available in the public domain and/or provided by the Company. In particular, historical results should not be taken as a representation that such trends will
be replicated in the future. No statement in this document is intended to be nor may be construed as a profit forecast.
ON FUTURE-ORIENTED FINANCIAL INFORMATION: To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable
Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader
should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without
limitation, based on the assumptions and subject to the risks set out above under the heading “Cautionary Statement On Forward-Looking Statements”. For a discussion of some of the important factors that could cause GTI’s
results to differ materially from those expressed in, or implied by, the forward-looking statements included in this presentation, investors should refer to the disclosures contained under the headings “Risk Factors” and
“Cautionary Statement Regarding Forward Looking Information” in the Company’s Annual Information Form. GTI’s actual financial position and results of operations may differ materially from management’s current expectations
and, as a result, GTI’s revenue and expenses may differ materially from the revenue and expenses profiles provided in this presentation. Such information is presented for illustrative purposes only and may not be an indication
of GTI’s actual financial position or results of operations.
USE OF NON-IFRS MEASURES: In addition to disclosing financial results that are determined in accordance with International Financial Reporting Standards (“IFRS”), GTI also discloses in this presentation certain non-IFRS
financial information, including EBITDA and adjusted operating EBITDA. EBITDA means earnings before interest, taxes, depreciation and amortization and is a measurement of financial performance without having to factor in
financing decisions, accounting decisions or tax environments. Adjusted operating EBITDA is earnings before interest, taxes, depreciation, amortization, less certain non-cash equity compensation expense, including one-time
transaction fees and all other non-cash items. These financial measures are not recognized under IFRS, and when analyzing our performance or liquidity, as applicable, investors should use EBITDA and adjusted operating
EBITDA in addition to, and not as an alternative to, net income. See Appendix A for a reconciliation of EBITDA and Net Income.
3
▪ Market Opportunity
▪ GTI’s Strategy
▪ Recent Big Wins
▪ Brand Portfolio & Rise Retail Concept
▪ Our Team
▪ Financial Execution
AGENDA
4
OPPORTUNITIES IN THE CURRENT CANNABIS LANDSCAPE
5
PROJECTED U.S. CANNABIS MARKET SIZE RIVALS ALCOHOL + TOBACCODRIVEN BY ILLICIT-TO-LEGAL SALES + NEW USER ADOPTION
$100B$
Ma
rke
t S
ize
($B
)$110B
$80B
$60B $60B
$120B
Statista; Cannabis category reflects projections from industry analysts
BE
ER
WIN
E
SP
IRIT
S
CA
NN
AB
IS
TOB
AC
CO
6
…WITH MASSIVE GROWTH EXPECTED OVER THE NEXT 10 YEARS ACROSS A HIGHLY FRAGMENTED MARKET
20%C
om
po
un
d A
nn
ua
l
Gro
wth
Ra
te
BE
ER
WIN
E
SP
IRIT
S
CA
NN
AB
IS
TOB
AC
CO
1.3%2.3%
3.8%
2.0%
20%
Management estimates; Cowen Equity Research; Beer, Wine, and Spirits reflect historical 10yr CAGR; Tobacco reflects conservatively projected future 10yr CAGR; Cannabis reflects projected future 10yr CAGR
7
BEER WEED
CONSUMERS ACTIVELY SEEKING ALTERNATIVESSEARCH FOR “WEED” SURPASSES “BEER” IN 2019
U.S. SEARCH INTEREST: WEED VS. BEER OVER TIME
Google Trends; October 1, 2019
Oct 1, 2019
8
33
CHANGING CONSUMER SENTIMENT POSITIVE REGULATORY MOMENTUM
Farm Bill Passes Dec. 2018
ADDRESSES OPIOID EPIDEMIC INCREASING SUPPORT ANDSCIENTIFIC RESEARCH 2
THE END OF PROHIBITION BACKED BY GLOBAL MOMENTUM
SAFE Act Passed House Sept. 2019
States Act in U.S. Congress
States + D.C.Legal Programs
66% Bipartisan Support for Legalization
25% Reduction in Opioid Related Deaths1
NationalLegalization
30+ Countries Legal Program
(1) Journal of American Medicine; Medical Cannabis Laws and Opioid Analgesic Overdose Mortality in the United States, 1999-2010; (2) UCLAHealth.org/cannabis
9
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
U.S. CANADA
U.S. CANNABIS INDUSTRY TRADES AT A DISCOUNT COMPARED TO CANADIAN PEERS
(1) Analyst reports and management estimates; October 1, 2019
The U.S. has 10x the population
and ~8x the estimated market
size compared to Canada.
Yet, the Canadian market cap is
~2x its market size vs. U.S. at
~0.2x.
U.S. vs. CANADIAN MARKET OPPORTUNIT Y 1
ESTIMATED MARKET SIZE ($B) MARKET CAP ($B)
As legalization and capital gaps
close, U.S. innovation is
expected to lead the global
cannabis movement.
CSE: “GTII” | OTC: “GTBIF”
LEAD U.S. CANNABIS
WE ARE ON A MISSION TO EMPOWER THE
RIGHT TO WELLNESS BY PROGRESSINGRESPONSIBLE ADULT USE OF CANNABIS
Authentic Family of Brands
People-First Retail Experiences
Commitment to Community
Sustainable Profitable Growth
11
CONSUMER FIRSTLead with consumer-forward
brands and people-first retail
experiences
OPERATIONAL EXCELLENCE Deliver legendary customer
experience through best-in-class
operational efficiency, safety,
quality, and sustainability
GAIN SHAREEstablish foundation for
sustainable, profitable
national distribution
STRATEGY: DISTRIBUTE BRANDS AT SCALE
12
GTI AT A GLANCE
with first-mover advantage
across 12 states, reaching
150+ million people
drives margins and
scalable growth
for entering markets,
getting operational, and
gaining market share
innovative, high-quality,
consumer-centric, and
distributed at scale
Leading U.S. Operating Platform
Vertically Integrated Supply Chain
Proven Track Record
Strong Balance Sheet
with financial flexibility to
support growth
with a culture of
shareholder alignment
Experienced Executive Team
Inspire Impact
Portfolio of Consumer Brands
in the communities
we serve
for strategic growth and
market expansion
Disciplined Capital Allocation
13
(1) Based on fully diluted share count at market close September 30, 2019; share price at market close September 30, 2019 USD$8.16
OUR NATIONAL FOOTPRINT 12 Markets
GTI Current Markets
$1.7 B1
Market cap
95 Retail licenses
12 States
1200+Team membersNationwide
$44.7 M 2Q19 Revenue +228% vs. YA; +60% QoQ
6Owned Brands
151 MAddressable market population
2014Year founded
32Open Stores
13Production facilities
GTI BY THE NUMBERS
WE ARE
A GROWTHCOMPANY
WE ARE
A RETAILCOMPANY
WE ARE
A CONSUMER PRODUCTS
COMPANY
14
DIVERSIFIED FAMILY OF CONSUMER BRANDSTO DISTRIBUTE AT SCALE
• Sales network for full retail distribution
• Production across all product categories
(Inhaleables; Ingestibles; Topicals)
We are committed to developing effective and
innovative products that help people live their
best lives, every day.
15
Significant capacity to
cultivate raw cannabis to
supply production needs
CULTIVATION MANUFACTURING WHOLESALE + RETAIL
SCALED PRODUCTION + DISTRIBUTION ACHIEVED THROUGH SUPPLY CHAIN OWNERSHIP
Robust processing and
manufacturing with over 300
SKUs in current production
Branded products distributed and
sold wholesale to third-party retailers
+ through GTI-owned retail stores
16
GTI RETAIL OVERVIEW
GTI Current Markets Retail Store Essence Retail Store
People-first retail experience focused
on best-in-class service + selection
95 high volume retail locations;
32 stores open as of 10/1/2019
A NATIONAL PEOPLE-FIRST RETAIL CONCEPTHIGH GROWTH BUSINESS WITHIN THE BUSINESS
17
ANTHONY GEORGIADISCHIEF FINANCIAL OFFICER
DIRECTOR
Decades of consumer experience
creating, marketing, distributing, and
retailing beloved consumer brands.
GTI EXECUTIVE TEAM
BEN KOVLER FOUNDER, CEO
CHAIRMAN
JENNIFER DOOLEYCHIEF STRATEGY OFFICER
ANDREW GROSSMANHEAD OF CAPITAL MARKETS
BETH BURKINTERIM CHIEF LEGAL & COMPLIANCE OFFICER
ARMEN YEMENIDJIANPRESIDENT
JULIE KNDUSON CHIEF PEOPLE OFFICER
Green Thumb Industries is not affiliated with or sponsored by the above Companies and logo use does not represent an endorsement of Green Thumb Industries.
18
GTI BOARD OF DIRECTORS
GLEN SENK WENDY BERGER
WENDY brings decades of experience instrategic planning, execution, and exitsfor rapid growth start-ups, in addition toa tenured career in real estate planning,development, and transactions. She co-founded and was COO of NeoglyphicsMedia Corporation, one of the country’sfirst website development firms whereshe was integral in successfully scalingthe organization from start up to anexit in March 1998 for $65 million.Following, Ms. Berger was employeenumber 11 at Orbitz, the Travel websitefounded in 2000, where she wasDirector of Strategic EnterprisePlanning.
Wendy is principal of WBS Equities,LLC., which specializes in ground-upconstruction, renovation, development,sale lease back transactions andacquisitions.
GLEN is a creative leader who hasworked with several of the world’smost iconic brands. In 1994, he joinedUrban Outfitters (NASDAQ: URBN) aspresident of Anthropologie, which wasthen a single-store prototype. Duringthe course of growing Anthropologieinto a billion-dollar brand, Glen wasnamed executive vice president ofURBN in 2002, elected to thecompany’s board of directors in 2004,and named CEO of URBN in 2007.
Glen also served as CEO for America’sleading fine jewelry brand DavidYurman and founded Front RowPartners in April 2014. Glen currentlyserves on the board of directors ofAritzia (TSE: ATZ), Boden, KendraScott and Opening Ceremony.
WES MOORE
WES is a bestselling author,decorated army combat veteran,and Chief Executive Officer atRobin Hood, New York City’slargest poverty-fightingorganization. Before becomingCEO at Robin Hood, Wes was thefounder and CEO at BridgeEdU, aninnovative platform addressing thecollege completion and jobplacement crisis. Wes also hostsOprah Winfrey Network’s "BeyondBelief" and PBS’s "AmericanGraduate Day" and is the ExecutiveProducer and host of PBS’s"Coming Back with Wes Moore",focusing on the reintegration ofIraq and Afghanistan veterans.
Wes also served as a White HouseFellow to Secretary of StateCondoleezza Rice.
CEO Ben Kovler is the Chairman and CFO Anthony Georgiadis is a Director.
WILLIAM GRUVER
BILL brings extensive capital marketsexperience after a 20-year tenure atGoldman, Sachs & Co. Under hisleadership, Bill transformed theequities division through therestructure and redeployment ofpeople and capital to become one ofthe firm’s largest and most profitabledivisions. Bill serves as director, andsits on the audit committees, ofGeisinger Health and Private ClientBank. He is also a national arbitratorof the Financial Industry RegulatoryAuthority and now holds the HowardI. Scott Chair in Global Commerce,Strategy and Leadership at BucknellUniversity.
Bill is a decorated veteran, havingserved as a qualified officer of thedeck in the nuclear submarine force ofthe United States Navy.
ALEX YEMENIDJIAN
Alex Yemenidjian has served asChairman of the Board and ChiefExecutive Officer of Armenco Holdings,LLC, a private investment company,since January 2005, and co-foundedIntegral Associates, which was acquiredby GTI. Mr. Yemenidjian served asChairman of the Board and ChiefExecutive Officer of Tropicana LasVegas Hotel & Casino, Inc. from July2009 to September 2015. He also servedas Chairman of the Board and ChiefExecutive Officer of MetroGoldwyn-Mayer Inc. from April 1999 to April 2005and was a director from November 1997to April 2005. Mr. Yemenidjian wasdirector of MGM Resorts International,Inc. (“MGM”) (formerly MGM Grand,Inc. and MGM Mirage Resorts, Inc.)from 1989 to 2005 and was its presidentfrom 1995 to 1999.
19
GREEN THUMB FOR GOODCOMMITTED TO OUR COMMUNITIES
Across the country, GTI is proud to build a
culture of community support by partnering and
giving back to organizations that inspire impact.
20
A CULTURE OF SHAREHOLDER ALIGNMENT
MANAGEMENT OWNERSHIPExecutive team holds meaningful
equity ownership + has real cash
invested in the business
CORPORATE GOVERNANCEFour of seven Independent
Members on Board of Directors
EMPLOYEEOWNERSNearly 300 GTI team members
are shareholders
21
STRATEGY SUPPORTED BY STRONG FINANCIALS FOR ALIGNED, SUSTAINABLE PROFITABLE GROWTHSUMMARY INCOME STATEMENT(USD $000s)
Revenue
Gross Profit
Adjusted Operating EBITDA1
Net Income
Cash
Debt
$135,759
As of Jun 30, 2019
96,300
(1) Adjusted Operating EBITDA defined as earnings before interest, taxes, depreciation, and amortization, less certain non-cash equity-based
compensation expenses, and one-time transaction fees and all other non-cash items.
SUMMARY BALANCE SHEET(USD $000s)
Net Working Capital 93,611
FULLY DILUTED CAPITALIZATION TABLEShare Class (As of 9/30/2019)
Subordinate Voting Shares
Multiple Voting Shares
Super Voting Shares
Employee Stock Ownership Plan
TOTAL Fully Diluted Shares
127,067,085
37,704,100
40,228,900
4,733,181
213,395,913
Warrants 2,172,927
1,489,720Exchangeable Receipts
$13,625
2018
6,288
656
392
23,238
5,049
$44,727
2019
(22,243)
3 Months Ended Jun 30
TOTAL Shares Outstanding 205,000,085
22
TRACK RECORD OF STRATEGICALLY EXECUTING NATIONAL EXPANSION PLANS TO DISTRIBUTE BRANDS AT SCALETHROUGH 31 PURE LICENSE WINS AND 13 M&A TRANSACTIONS SINCE 2015
Illinois• 2015: Won 2 cultivation/processing
Nevada• 2015: Acquired 1 cultivation, 1 processing • 2019: Acquired Integral Associates: 2
Production in Las VegasMaryland
• 2017: Acquired 1 processing• 2018: Won 1 cultivation license• 2019: 1 cultivation license approved
OVERVIEW OF GTI BUSINESS INFRASTRUCTURE DEVELOPMENT
WHOLESALEBUSINESS
Illinois• 2015: Won 1 retail license• 2016: Acquired 50% of 1 retail store• 2017: Acquired 2 operating retail stores• 2019: Acquired 1 operating retail store
Nevada• 2015: Acquired 2 retail licenses• 2019: Acquired Integral Associates: 3
retail in Las Vegas; won 8 additional retail licenses
Maryland• 2017: Won 1 retail license; Acquired 2
retail licenses
Massachusetts• 2016: Won 2 cultivation/processing
Pennsylvania• 2017: Won 1 cultivation/processing
Florida• 2018: Acquired 1 cultivation/processing
Ohio• 2019: Won 1 processing license; Awarded
cultivation license
Arkansas• 2018: Applied, did not win
New York• 2018: Definitive for 1 production
New Jersey• 2018: Won 1 production license
California• 2019: Acquired Beboe brand
Connecticut• 2019: Acquired Advanced Grow
Labs; 1 production
RETAILBUSINESS
Massachusetts• 2016: Won 2 retail licenses• 2018: Acquired 1 retail location in
BostonPennsylvania
• 2017: Won 3 retail; Partner to own 3 additional retail
• 2018: Won 12 additional retail licenses
Florida• 2018: Acquired 30 retail locations• 2019: Program expansion for 5
additional retail locationsOhio
• 2018: Won 5 retail licenses
Arkansas• 2018: Applied, did not win
New York• 2018: Definitive for 4 retail licenses
New Jersey• 2018: Won 1 retail license
California• 2018: Won 1 retail license in West
Hollywood (includes consumption lounge)• 2019: Won 1 retail license in Pasadena
and 1 retail license in Culver City Connecticut
• 2019: Acquired AGL; 1 retail license
23
GTI AT A GLANCE
with first-mover advantage
across 12 states, reaching
150+ million people
drives margins and
scalable growth
for entering markets,
getting operational, and
gaining market share
innovative, high-quality,
consumer-centric, and
distributed at scale
Leading U.S. Operating Platform
Vertically Integrated Supply Chain
Proven Track Record
Strong Balance Sheet
with financial flexibility to
support growth
with a culture of
shareholder alignment
Experienced Executive Team
Inspire Impact
Portfolio of Consumer Brands
in the communities
we serve
for strategic growth and
market expansion
Disciplined Capital Allocation
24
THANK YOU.
25
APPENDIX ANET INCOME TO ADJUSTED OPERATING EBITDA RECONCILIATION
(1) EBITDA defined as earnings before interest, taxes, depreciation, and amortization; (2) Adjusted Operating EBITDA defined as EBITDA less other
income, plus non-cash share-based compensation, and one-time transaction related expenses.
(USD $000s)
Net Income (IFRS)
Interest income
Interest expense
Income taxes
EBITDA1 (non-IFRS measure)
Adjusted Operating EBITDA2 (non-IFRS measure)
$25,015
2018
(378)
467
(1,581)
(536)
6,183
$(22,026)
2019
(177)
3 Months Ended Jun 30
Depreciation + amortization 7,181 640
(9,375) 29,996
Other income 6,641 (34,612)
Share-based compensation, non-cash 6,339 1,007
RTO-related expenses -- 4,265
Acquisition, transaction + other non-operating costs 1,445 --
5,049 655