Aurora Cannabis : Download Investor Relations Presentation PDF (3.92MB)

INVESTOR PRESENTATION

NOVEMBER 2021

Disclaimer

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information contained in this presentation constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward- looking statements in this presentation include, but are not limited to, statements with respect to the Company's strategy for achieving cost savings and path towards, positive Adjusted EBITDA, the development of the Company's breeding and genetics licensing programs, the development of innovative products for the market, anticipated size and or revenue associated with the adult consumer market in Canada and the global market for medical cannabis and CBD as well as the Company's ability to drive sales growth in each respective market, and the Company's ability to continue to supply products to international markets, including Israel. Forward-looking statements are based on certain opinions, estimates and assumptions of Aurora's management in light of management's experience and perception of historical trends, current conditions and expected developments at the time the statements are made, including expected growth, results of operations, performance, industry trends and conditions, the current and future regulatory environment and growth opportunities. While Aurora considers these opinions, estimates and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Recipients are cautioned not to place undue reliance on forward-looking statements contained herein. Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments, including changes in laws; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the early stage of the cannabis industry in Canada generally and the CBD market in the U.S.; realization of funded production estimates; changes in tax treatment; the ability of Aurora to implement its business strategies; competition; product demand; changes in prices of required commodities; currency and interest rate fluctuations; the effects of and responses to the COVID-19 pandemic; that the adult consumer market for cannabis in Canada and CBD in the U.S. and the global medical cannabis market, will prove smaller than estimated; whether the Company will be able to identify consumer trends and stock desirable products, identify partnering opportunities, right-size production facilities, and maintain SG&A costs; and other risks and uncertainties set out under the heading "Risk Factors" in Aurora's annual information form dated September 27, 2021 and filed with Canadian securities regulators available on Aurora's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov.

Recipients are cautioned that the foregoing risks are not exhaustive and other factors could also adversely affect Aurora and its business and operations. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this presentation are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Aurora 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 required by law.

No securities of Aurora any kind are being offered as part of this presentation. Before making an investment of any kind in securities of Aurora, potential investors are urged to read Aurora's public disclosure materials filed under Aurora's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov.

3

Diversified Business Model

Canadian	International
Medical	Medical
#1 Canadian Medical	Active in 12 countries
share by revenue	in FY21
65% Adjusted Gross	146% YoY Growth
Margin in Q1	64% Adjusted Gross
	Margin in Q1

Adult

Recreational

Canada: Focus on quality and shift to premium brands

U.S.: Reliva CBD ranked #1 CBD brand in brick & mortar channel by Nielsen, launch of new KG7 CBD brand

Science &

Innovation

Launch of 3 new unique cultivars from breeding program

First genetics licensing transaction

4

Leadership Position Amongst Peers

Cannabis Segment Net Revenue (TTM, $ Millions),

Adjusted Gross Margin (TTM, %)

$M								%
400		393	388							50	#1 Canadian LP in global medical cannabis
350										45
									40
300
			244	238					35
250
							30
200										25	Industry leading Gross Margins due to
150										20
									leadership in high margin medical segments
						98			15
100							75
							10
50
									5
0										0
	Canopy (1)	Tilray (2)	Hexo(3)	(4)	Village(5)	OrganiGram(6)
		Growth					Farms

Sources: Public filings, TTM compiled based on latest filings as of latest issuance dates:

1. CGC as of 9/30/21. Revenue excludes B2C retail store revenue, Gross Margin for global cannabis segment excluding inventory write-downs
2. TLRY as of 8/31/21: Cannabis segment only. Estimated pro forma includes the combination with Aphria, converted using CAD/USD FX rate as of 1.26 per BoC at Aug '21
3. HEXO as of 7/31/21: is a TTM pro forma estimate including acquisition of Redecan (year ending Dec '20) and 48North (year ending March '21)
4. ACB as of 9/30/21
5. VFF as of 6/31/21: Cannabis segment only.
6. OGI as of 5/31/21

5

Canadian Medical Market Leadership

# 1

CanadianMedical Share by Revenue

65%

Adj. Gross Margin achieved in Q1 2022

$530m

MedicalCannabis

Market Size in

Canada(1)

High Adjusted gross margin revenue stream serves as a solid foundation:

• Direct-to-patientdistribution model; end-to-end experience from

medical consultation to prescription fulfillment

• Focus on insured patient groups with high repeat purchase rate

Opportunities to expand our presence:

• Opportunity to capture share from fragmented market in which 60% are ……small players
• Opportunity for increased benefit plan coverage; despite 64% of employees ……believing cannabis should be covered, only 37% of employers do so (2)

1. Source: Statistics Canada, July 2021
2. Source: Sanofi Pasteur 2020 Healthcare Survey