Investor PresentationApril 2019
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The offering to which this presentation (the "Presentation") relates will be made pursuant to an offering
memorandum. Before you invest, you should read the offering memorandum and other documents
incorporated by reference therein for more complete information. This Presentation shall not constitute
an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any
state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state or jurisdiction. The securities discussed in this
Presentation have not been registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”), and are being offered only to qualified institutional buyers as defined in Rule 144A
under the Securities Act or outside the United States to non-U.S. persons in reliance on Regulation S
under the Securities Act. The securities may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of the Securities Act.
This Presentation about Aphria Inc.’s (“Aphria”) activities current as of April 15, 2019. It is information
in a summary form and does not purport to be complete. It is not intended to be relied upon as advice
to investors or potential investors and does not take into account the investment objectives, financial
situation or needs of any particular investor. These should be considered, with or without professional
advice, when deciding if an investment is appropriate.
The information contained in this Presentation is derived solely from management of Aphria and
otherwise publicly available information concerning Aphria and does not purport to be all-inclusive or
to contain all the information that an investor may desire to have in evaluating whether or not to make
an investment in Aphria. The information has not been independently verified and is subject to
material updating, revision and further amendment, and is qualified entirely by reference to Aphria’s
publicly disclosed information.
No representation or warranty, express or implied, is made or given by or on behalf of Aphria or any of
its affiliates, directors, officers or employees as to the accuracy, completeness or fairness of the
information or opinions contained in this Presentation and no responsibility or liability is accepted by
any person for such information or opinions. Aphria does not undertake or agree to update this
Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become
apparent. No person has been authorized to give any information or make any representations other
than those contained in this Presentation and, if given and/or made, such information or
representations must not be relied upon as having been so authorized. The information and opinions
contained in this Presentation are provided as at the date of this Presentation. The contents of this
Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should
contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial
or tax advice.
Certain statements in this Presentation may constitute forward-looking information, including future-
oriented financial information and financial outlooks, within the meaning of applicable securities laws.
Forward-looking information may relate to Aphria’s future outlook and anticipated events or results and
may include statements regarding Aphria’s financial results, future financial position, expected growth
of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes,
plans, objectives, potential synergies, industry trends and growth opportunities.
Often but not always, forward-looking information can be identified by the use of words such as
“anticipate”, “believe”, “expect”, “project”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “might”,
“target”, “plan” and other similar expressions or variations (including negative variations) of such words
and phrases.
Forward-looking information contained in this Presentation is based on certain assumptions regarding
expected growth, results of operations, performance, industry trends and growth opportunities. While
management considers these assumptions to be reasonable, based on information available, they
may prove to be incorrect. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of
Aphria to be materially different from any future lts, performance or achievements expressed or
implied by the forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to risks associated with general
economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and
regulatory developments involving cannabis; inability to access sufficient capital from internal and
external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry
in Canada generally, income tax and regulatory matters; the ability of Aphria to implement its
business strategies; competition; crop failure; currency and interest rate fluctuations, and the other
risks discussed under the heading “Industry trends and risks” in Aphria’s Management’s Discussion &
Analysis dated April 15, 2019. The foregoing factors are not intended to be exhaustive.
Although Aphria has attempted to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date hereof and Aphria and its
directors, officers and employees disclaim any obligation to update any forward-looking statements,
whether as a result of new information, future events or results or otherwise. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, you should not
place undue reliance on forward-looking statements due to the inherent uncertainty therein. All
forward-looking information is expressly qualified in its entirety by this cautionary statement.
Forward-looking information and other information contained herein concerning management’s
general expectations concerning the marijuana industry are based on estimates prepared by
management using data from publicly available industry sources as well as from market research and
industry analysis and on assumptions based on data and knowledge of this industry which
management believes to be reasonable. However, this data is inherently imprecise, although generally
indicative of relative market positions, market shares and performance characteristics. While
management is not aware of any misstatements regarding any industry data presented herein,
industry data is subject to change based on various factors.
This Presentation may not be reproduced, further distributed or published in whole or in part by any
other person. Neither this Presentation nor any copy of it may be taken or transmitted into or
distributed in any other jurisdiction which prohibits the same except in compliance with applicable
laws. Any failure to comply with this restriction may constitute a violation of applicable securities law.
Recipients are required to inform themselves of, and comply with, all such restrictions or prohibitions
and Aphria does not accept liability to any person in relation thereto.
Safe Harbor Statement
We have a good thing growing.
Our Mission & Vision
Led by our passion for customers and consumers, Aphria’s mission
is to be the premier global cannabis company through an unrelenting
commitment to our people, product quality and innovation.
Aphria’s vision is to be the best performing cannabis company
globally, providing investors with access to one of the most accretive
cannabis opportunities around the world.
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Aphria at a GlanceDifferentiated Global Cannabis Leader
Strong Brand Positioning1
Extensive Distribution Model in Canada2
Product Innovation3
Industrial Scale Cultivation and Automation4
Medical-Use Leadership5
Strategic Global Platform6
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Targeting a $150B+ Disruptive Global Opportunity
Adult-Use and Medical
Medical only
Adult-Use and Medical (U.S.)
Medical only (U.S.)
Estimated global
cannabis market by
2025(1)
$150B
Estimated Canada
market for cannabis
by 2024(2)
$9B
Adult-Use
cannabis
$6BMedical cannabis
$3B
(1) Source: Grand View Research.
(2) Source: Eight Capital Research.
Adult-Use
cannabis
$50BMedical cannabis
$100B
In US dollars
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The Potential Expansion and Evolution of Cannabis
Aphria is at the Forefront of R&D Aimed at Disrupting New Industries (e.g. Wellness)
Current Segment
MedicalConsumer Profile
Medical prescription (Rx)
Used with HCP guidance
Benefit driven – symptom treatment
Quality source, dosing precision and
safety are critical
Prefer not to smoke
Sales Channels
Direct to patient
Pharmacy(1) (when available)
Example Products
Prescription Drugs
Tinctures
Softgels
Suppositories
Oral strips
Transdermal patches
Future Segment
WellnessConsumer Profile
Health & appearance conscious
Self-educate & medicate
Benefit driven – therapeutic &/or cosmetic
Seeking natural alternatives to pharmaceuticals &
enhancement to wellness regime
Open to complementary functional ingredient
Sales Channels
Traditional retail – Bricks and mortar and online
Natural food stores
Pharmacies
Alternative locations (i.e. gym, yoga studios,
wellness retreats)
Example Products:
Cannabinoid focus is
CBD (cannabis or hemp
derived)
Infused water
Sports drinks
(nutrition,
enhancement and
recovery)
Personal care and
cosmetics
Topical relief products
Teas & Beverages
Supplements
Tinctures
Oral care
Current Segment
Adult-UseConsumer Profile
Seeks psychoactive effect
Potency important (+ or - )
Taste important
CBD used in concert with THC
Sales Channels
Brick and mortar shops (licensed retail)
Online (licensed retail)
Example Products
Dried flower
Pre-rolls
Cannabis oil &
oral sprays
Vapes
Concentrates
(shatter, wax,
resin)
THC infused
beverages
Edibles
Dabs
(1) Pharmacy only applicable outside of Canada.
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Strong Brand Positioning
Thoughtful Research Process
Extensive year-long and three-phased
research process identified key consumer
segments to optimize brand positioning
Each of Our Brands Has Been Created to Delight Distinct Segments of Consumers, From First-
Timers to the Most Experienced Users and Those in Between
Our Brands are Designed to Target Most
Profitable Customer Segments
We leverage our data and consumer insights
to design our in-house and licensed brands in
order to meet the needs of the most
profitable consumer segments
Distinct and profitable target segments
Range of retail prices
Diversified product offering
Backed by strong marketing and research support
Value
($)
Mainstream
($$)
Premium
($$$)
Enthusiasts
Passive Risk Takers
Relaxers
Novices
Cultivated
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Extensive Distribution Model in Canada
Medical distribution with
one of the top retail
pharmacies in Canada
Provides access to online
sales channel (Direct to
Consumers)
Supply agreements with every
Canadian province and the
Yukon Territory
Powerful reach with access to
99.8% of Canadians
North America’s largest wine
and spirits distributor
Great North Distributors
(subsidiary) is a national
sales broker for legalized
adult-use cannabis
Exclusive distribution
partnership
Ability to leverage
operations in every province
across Canada and
potentially benefit from
operations in the U.S.
(Southern Glazer operates
in 44 states plus the District
of Columbia), and the
Caribbean
Adult-Use Medical
Direct-to-patient sale
through telephone and
e-commerce
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Product Innovation
(1) When permitted by law.
Leading Producer of High Quality Flower
Allows Us to Deliver Derivative Products
at Superior Margins
Partners In R&D And Analysis
Clinical Research & University Partners
Infrastructure and Partnerships for Category Must Haves(1)
Partnership to Create and
Develop Tongue Strips
Medical Delivery Systems
License Agreement to Develop
Cannabis Patches
EdiblesSoftgels CosmeticsBeveragesVapes Concentrates
In-House
Extraction Centre of Excellence
VERVE DYNAMICS specializes in innovative and proprietary
technologies for the nutraceutical and phyto-extraction
Acquisition of German
Pharmaceutical Distributor
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Industrial Scale Cultivation and Automation
(1) These figures are considered forward-looking information and are based on the Company’s experience in growing cannabis, and data available concerning the wide variety of strains under the growing conditions maintained at its facilities. Material assumptions to
derive capacity at full completion include, but are not limited to: the number of plants expected to occupy each facility, the number of harvest cycles and average yield per harvest cycle per year for the strains expected to be grown at each facility.Subject to Health
Canada approval.
(2) 800,000 sq. ft. was approved by Health Canada in March 2019, the Company anticipates full crop rotation in May 2019. The current capacity cannot be reached until the Company is in full crop rotation.
(3) Subject to Health Canada approval.
(4) Medical cultivation license will no longer be provisional provided no opposition arises on or before April 16 th, 2019.
Fully
Licensed(2)
Facility
Type
of Facility
Aphria
One
Aphria
Diamond
Broken
Coast
110,000 kg/yr
cultivation(2)
NA
5,000 kg/year
cultivation
Greenhouse1,100,000
sq. ft.(2)
4,500
sq. ft.
Current
Size
Awaiting
Approval
License
Expansion
Under Way
Current
Capacity(1)
Expected
Capacity(1)
License
Status
110,000 kg/yr
cultivation
5,000 kg/year
cultivation
140,000 kg/year
cultivation
1,300,000
sq. ft.Greenhouse
Indoor
Indoor NAConditionally
Awarded(4)
Aphria
Deutschland
65,000
sq. ft.
7,000 kg/yr
cultivation
Outdoor17,000 kg/yr
cultivation
License
ApprovedJamaica
150,000
sq. ft.
17,000 kg/yr
cultivation
255,000 kg Combined
Annual Canadian
Production(3)
One Of The Largest
Cultivation Footprints
In The Industry
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Industrial Scale Cultivation and Automation
Currently Implemented
Automation Processes
Part IV Part V
Cutting-Edge Technology
Cutting Plants Transferring Plants
De-budding Process Trimming Process
Waste Disposal Bud Distribution
Transplanting Cuttings Growth Cycle Evaluation
Plant Quality Testing Nutrient Supply
Monitoring Growth Cycle Transporting Plants
Bringing Industrial Horticulture Technology Into the Cultivation of Cannabis Within a Greenhouse
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Aphria is Committed to Responsible Drug Practices, Evidence-Based
Treatment and Advancing Cannabis Science
Partner Country Aphria Contribution Indication
CanadaSupplying dried flower and cannabis oil
productsChronic cancer-related pain
AustraliaProducing and supplying high-yield cannabis
extractsIntractable pain in oncology patients
Australia Supplying cannabis oil Chronic pain in cats and dogs
Argentina Rideau CBD oil Refractory epilepsy in children
Medical-Use Leadership
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Aphria Has Invested in Building a Strategic Presence in More than 10 Countries
Well-Positioned to Capitalize on Global Cannabis Demand Led by Medical-Use Markets
Foothold in the Largest Cannabis Ready Markets
Strategic Global Platform
(1) Medical cultivation license in Germany will no longer be provisional provided no opposition arises on or before April 16 th, 2019.
(2) Signed LOI for exclusive supply agreement.
Canada
Germany(1)
Colombia
Argentina
Paraguay (2)
Lesotho
Malta
Australia
Denmark
Italy
Jamaica
Distribution
Medical
License / Cultivation
Research
Partnership
Medical and Adult-Use
License / Processing
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Awarded Provisional(1) Medical Cannabis Cultivation License by the
German Federal Institute of Drugs and Medical Devices
Germany: Three Pillar Strategy to Drive Growth
Partnership with Berlin-based
Schöneberg Hospital(2)
Pain treatment centers
Digital health care
Aphria is well positioned to become a leader in the German cannabis market
Germany represents one of the most highly sought-after medical cannabis markets in the world
Germany has a population ~2.3x the Canadian market (83 MM) and an insurance-sponsored medical cannabis program
Demand Supply Distribution
Received provisional licenses to
cultivate cannabis in Germany(1)
Schroll Flowers partnership
Imports
Acquisition of CC Pharma; access
to approximately 13,000 active
pharmacy accounts
(1) Medical cultivation license will no longer be provisional provided no opposition arises on or before April 16 th, 2019.
(2) Obtained 25.1% ownership stake in Berlin-based Schöneberg Hospital.
Appendix
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Net Revenue $73,582 $21,668 $10,267
Revenue from Cannabis Produced $17,862 $22,738 $10,267
Distribution Revenue $57,599 $1,146 NA
Other Revenue $545 $640 NA
Excise Taxes ($2,424) ($2,856) NA
Gross Profit $17,295 $5,983 $8,570
Adjusted Gross Profit(1) $13,366 $10,157 $7,912
Adjusted Gross Margin(1) 18.2% 46.9% 77.1%
Adjusted Gross Margin from
Cannabis Operations(1) 36.3% 49.8% 77.1%
Three months ended
February 28, 2018
Three months ended
February 28, 2019
Quarterly Financial Summary
Three months ended
November 30, 2018
In thousands of Canadian dollars, unless otherwise noted
(1) Non-IFRS measure
Note: Aphria Inc. acquired CC Pharma in January 2019 which largely contributed to the increase in distribution revenue.
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Well-Capitalized Balance Sheet
Common Share Outstanding 250,700,023 98.0%
Options 4,203,760 1.6%
Warrants 1,028,087 0.4%
Total Fully Diluted Shares 255,931,870(1)
$135 MILLION CASH &
NEAR CASH POSITION(2)
WORKING CAPITAL
$131 MILLION
INVENTORY
12,126 KILOGRAMS
(OR KILOGRAM
EQUIVALENTS)
In Canadian dollars, unless otherwise noted
(1) Exercisable and in-the-money.
(2) Includes cash and cash equivalents & marketable securities as disclosed in the Management Discussion & Analysis released on April 15, 2019.
As of February 28, 2019
As of April 12, 2019
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Foothold in Key Markets
AFRICA:Lesotho: JV and off-take agreement with Verve Dynamics
SOUTH AMERICA:Acquisition of LATAM Holdings Inc., providing access to Colombia, Argentina, Jamaica
Paraguay: Signed LOI for exclusive supply agreement with Insumos Medicos, S.A., to provide medical cannabis
PAN ASIA:Australia:
25% ownership of public licensed producer Althea
Supply agreement for clinical drug trials with MedLab and one other company
NORTH AMERICA:Canada: Supply agreements with every Canadian province and the Yukon Territory, strategic partnerships establishing
wholesale supply agreements
EUROPE:Germany: Acquired CC Pharma with access to over 13,000 pharmacies; one of only 3 cultivation licenses
Italy: One of only 7 cannabis import licenses
Malta: Owns ASG Pharma, a high-capacity lab
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Net Revenue $73,582 $21,668 $10,267
Gross Profit $17,295 $5,983 $8,570
Fair Value Adjustment on Sale of
Inventory(1) $5,542 $8,328 $3,443
Fair Value Adjustment on Biological
Assets(2) ($9,471) ($4,154) ($4,101)
Adjusted Gross Profit $13,366 $10,157 $7,912
Adjusted Gross Margin 18.2% 46.9% 77.1%
Three months ended
February 28, 2018
Three months ended
February 28, 2019
Reconciliation to Non-IFRS Figures
Three months ended
November 30, 2018
In thousands of Canadian dollars, unless otherwise noted
(1) Fair value adjustment on sale of inventory is part of the Company’s cost of sales due to IFRS standards relating to agriculture and biological assets (i.e. living plants or animals). This line item represents the effect of the non-cash fair value adjustment of inventory sold in the period.
(2) Fair value adjustment on growth of biological assets is part of the Company’s cost of sales due to IFRS standards relating to agriculture and biological assets (i.e. living plants or animals). This line item represents the effect of the non-cash fair value adjustment of biological assets (medical cannabis) produced in the period.
Reconciliation of IFRS Gross Profit to Adjusted Gross Profit
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Revenue from Cannabis Produced $17,862 $22,738 $10,267
Excise Taxes ($2,424) ($2,856) NA
Cannabis Net Revenue $15,983 $19,882 $10,267
Productions Costs ($10,175) ($9,971) ($2,355)
Adjusted Gross Profit from Cannabis
Operations$5,808 $9,911 $7,912
Adjusted Gross Margin from
Cannabis Operations36.3% 49.8% 77.1%
Three months ended
February 28, 2018
Three months ended
February 28, 2019
Reconciliation to Non-IFRS Figures (Cont.)
Three months ended
November 30, 2018
In thousands of Canadian dollars, unless otherwise noted
Reconciliation from Revenue from Cannabis Produced to
Adjusted Gross Profit from Cannabis Operations