1Q21 Investor Update slide image

1Q21 Investor Update

PROFITABILITY TRENDS BY MARKET Established markets exhibit greater profitability metrics as newer markets ramp towards guidance Top 5 Markets by Revenue 1Q 2020 1Q 2021 Arizona California Colorado Massachusetts Massachusetts New York Ohio Ohio 71% Of Total Combined Revenue for 1Q 2021 Pennsylvania Pennsylvania Note: All figures are Combined metrics. Markets listed alphabetically. M Sequential improvement in gross margin across the portfolio - especially in California, Florida and Arizona - was offset by seasonality and decision to partially take off-line and upgrade largest indoor grow in preparation for $100 days of heat' during 2Q and 3Q in Colorado Top 5 Markets by Adj. Gross Margin 1Q 2021 42% Arizona Colorado Delaware Massachusetts New York Average Adj. Gross Margin by Length of Market Operations 50% Average 1Q 2021 Adj. Gross Margin 32% 24 MONTHS 15-24 MONTHS <15 MONTHS -33% *Excludes changes in fair value of biological assets and inventory sold for all periods presented, as well as $1.4 million in Q4 2020 and $0.1 million in Q1 2021 related to the write-up of inventory acquired in The Green Solution, Project Cannabis and The Healing Center San Diego. Top 5 Markets by Adj. EBITDA Margin 1Q 2021 Arizona Delaware Illinois Massachusetts Pennsylvania 33% Average 1Q 2021 Adj. EBITDA Margin Gross Margin Improvements On Horizon 10 ✓ New Jersey -2 dispensaries and 2 cultivation sites under development for 2021; first significant harvest from Vineland facility expected in 3Q ✓ Virginia - newer market, still ramping and building out dispensaries; Green Leaf will be margin accretive ✓ Florida - building out cultivation capacity, ongoing improvements at dispensary level, gross margin increased more than 2,000bps QoQ in 1Q ✓ Massachusetts - adult-use sales on track to begin late 2Q in Boston ✓ California - have not fully utilized our manufacturing capacity; acquisitions are accretive ✓ Colorado - implementing cultivation improvements to increase yields and utilization of manufacturing capacity ✓ Utah, Missouri, West Virginia - new markets currently under development, will open in 2021 Columbia Care™
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