Aurora Cannabis (ACB) TD Cowen 46th Annual Health Care Conference summary

Strategic focus and business transformation

• Completed multi-year restructuring, right-sized production, exited unprofitable markets, and achieved a debt-free, strong net cash position.

• Shifted strategic direction to focus on high-margin medical cannabis, especially in international markets like Europe and Australia.

• Divested plant propagation and scaled back lower-margin consumer segments to prioritize medical cannabis.

• Operational excellence, regulatory expertise, and commercial execution position the company for global growth.

• Medical cannabis now serves as the primary growth engine, with record revenue and EBITDA growth.

Market performance and competitive advantages

• Delivered CAD 94 million in recent revenue, with 7% year-over-year growth; global medical cannabis revenue reached CAD 212 million year-to-date.

• Medical cannabis market estimated at over CAD 9 billion, with Europe and Australia as key growth drivers.

• Achieves industry-leading margins in the mid-to-high 60% range due to pharmaceutical approach and GMP-certified manufacturing.

• Investments in GMP capacity in Canada and Germany reduce reliance on third parties and improve cost efficiency.

• Doubling production at the German facility to support market growth and flexibility in global supply.

Geographic and segment strategies

• Scaling back Canadian recreational business to focus on profitable provinces and improve EBITDA margins.

• Transitioning Australian portfolio toward core and premium products, leveraging fewer competitors and higher margins.

• Maintains leading position in highly regulated Poland by quickly adapting to regulatory changes and ensuring supply.

• Lessons from Poland are transferable to other markets, such as Germany.