Decibel Cannabis Company (DB) investor relations material

Business overview and strategy

• Focuses on ready-to-consume cannabis products, leading in infused pre-rolls and vapes in Canada.

• Operates domestically and internationally, with exports to nine countries and international sales making up about 25% of revenue.

• Maintains a profitable track record for six years, supported by an experienced executive team.

• Plans to expand market share in both domestic and international markets, leveraging Canadian regulatory certainty and export capacity.

• Uses in-house cannabis genetics for all products.

Market trends and growth

• Canadian market is mature, growing at single digits, while international segment is expected to grow at high double digits.

• Germany is the largest international market, with less than 4% share, and more countries are expected to legalize cannabis soon.

• Global cannabis market projected to reach CAD 134 billion in four years, 30 times the size of Canada.

• International markets are initially flower-driven but will shift to derivatives as regulations evolve.

• Ready-to-consume products represent 95% of the portfolio, with significant white space in traditional segments like flower and extracts.

Operational capacity and financial performance

• Manufacturing capacity in Canada is unconstrained, with ability to triple revenues before hitting limits.

• Q1 international revenue was CAD 9.6 million, nearly five times year-over-year, at only 30% utilization.

• Five-year CAGR of 21%, with gross margins improving annually, reaching 51% in Q1.

• Adjusted EBITDA doubled in the most recent quarter, with a 33% CAGR over five years.

• Positive adjusted net income for five years, with a trailing P/E ratio of 6x to 6.5x.