Canopy Growth (WEED) Canaccord Genuity's 46th Annual Growth Conference summary

Leadership vision and strategic transformation

• New leadership focused on transforming from a cash-burning entity to a consumer goods company, emphasizing operational discipline and value creation.

• Management team strengthened and cost reductions of over CAD 30 million implemented, with ongoing efforts to streamline operations.

• Acquisition of MTL Cannabis brought cultivation expertise and cultural shift toward product quality.

• Balance sheet cleaned up, refinancing completed, and momentum established for future growth.

Market positioning and growth initiatives

• Holds number one position in Canadian medical cannabis and rapidly advancing in Canadian recreational, aiming for top three.

• European operations reset, now building momentum with robust supply chain and sales network; first UK shipment expected in Q3.

• U.S. market entry planned when conditions are optimal, with financial resources and options ready.

• Storz & Bickel, a leading medical vaporizer brand, is being expanded into concentrate vaporizers to capture new market segments.

Operational improvements and financial performance

• Focus on elevating cultivation, streamlining operations, and transforming supply chain to support European growth.

• Achieved 31% gross margin, a 600-basis-point improvement, with a target to reach industry-best 50%.

• Q1 2027 results showed consolidated growth of 13%, with double-digit gains in Europe and Canada, and 6% growth for Storz & Bickel.

• Sub-20% of flower production currently exported, with all cultivation now fully indoor and EU GMP certified.