InterCure Ltd. Q4 FY2022 earnings call

• 2022 was a successful year with revenue over $150M and adjusted EBITDA of $32M, solidifying InterCure as a leading profitable cannabis company outside North America. • Upstream: Scaled up cultivation facilities, upgraded southern facilities, added new high-demand strains, and launched more GMP products than any other company. • Downstream: Expanded medical cannabis dispensing operation in Israel, with 28 locations (20 active) and plans to add more, plus international expansion with a Cookies shop in Vienna and a pharmacy in London. • Israel's medical cannabis market has potential growth with prescription reform expected to increase market to 85 tons in 2023 from 49 tons in 2022.

In 2022, InterCure's revenue exceeded $150 million with adjusted EBITDA of $32 million. The fourth quarter of 2022 had revenue of $41 million. The gross margin for 2022 was 41% of revenue, and adjusted EBITDA was 22% of revenue. The Israeli market was estimated to be ~70% high quality products and ~30% discounted products. InterCure's portfolio was close to this mix, with ~70% high quality products and ~30% legacy/ultra-medical products.

• 2023 CapEx expected to be at least 50% lower than 2022, focusing on global expansion. • Plan to launch branded products in Germany, UK, and other territories. • Continue developing medical cannabis dedicated pharmacy chain to ~35 locations.

• Financially struggling companies exiting the market selling low/mid quality products at discounted prices, affecting market prices. • Uncertainty around timing of Israeli prescription reform and its impact on market consolidation. • Regulatory challenges in international markets.

Q: Vivien Azer asked about the Israeli market mix by price point and InterCure's portfolio.

A: Alex Rabinovitch said the market is ~70% high quality and ~30% discounted, InterCure's portfolio is close to this, with 70% high quality products.

Q: Matt Bottomley inquired about gross margin trends, Q1 trends, and prescription reform impact.

A: Alex noted Q1 had strong demand for high quality products, market cleanup expected in mid-2023, and prescription reform could boost market share.

Q: Pablo Zuanic asked about Israeli prescription reform differences, doctor license count, and Australia deal.

A: Alex explained Israeli prescription reform addresses doctor licensing bottleneck, there were 200 doctors with prescribing licenses, and the Australia deal with Better is on hold due to legal issues.