MANAGEMENT PRESENTATION MARCH 2019 DISCLAIMER 2 Industry Macro - PowerPoint PPT Presentation

MANAGEMENT PRESENTATION MARCH 2019

DISCLAIMER 2

Industry Macro Trends 01 Our Company 02 Today’s agenda Our Brands 03 Q318 Financials 04 3

THE OPPORTUNITY U.S. CANNABIS MARKET IS BECOMING EVEN MORE ATTRACTIVE Cannabis will become a top consumer category by 2030 3 $196B $80 Billion Billion U.S. Dollars 1 BY 2030 $114B $102B $80B $75B $71B $24 Billion $57B $51B 2 $30B PROFIT Frozen Alcohol General Food Cannabis Home Care Health Refridgerated Beverages Beauty 1 . COWEN CANNABIS ESTIMATE JANUARY 2019 2. INTERNAL ESTIMATE 4 3. STATISTA 2017 RETAIL $ VOLUME AND COWEN CANNABIS ESTIMATE JANUARY 2019

KEY MACRO TRENDS REGULATION ACCESS EXPECTATIONS Increased regulation Ubiquitous retail Evolving consumer needs Increased complexity 9 new states in 2019 Greater industry expectations 5 BDI STATES TO WATCH IN 2019

Our mission is to normalize and professionalize cannabis 6

THE CRESCO LABS ADVANTAGE CAPABILITIES TO DRIVE LONG-TERM VALUE Highly Effective Scale Selling House of Rapid Innovation Top-Tier System Capabilities Execution Brands Management Team WHAT WE DO HOW WE DO IT 7

HIGHLY EFFECTIVE EXECUTION 1. We win competitive 3. We get to UNMATCHED SUCCESS IN OPERATIONAL FASTER licenses to open market COMPETITIVE STATES THAN COMPETITORS new markets faster ACHIEVE 100% PENETRATION 2. We acquire 4. We establish ACQUIRE ASSETS TO DRIVE AND DOMINANT MARKET GROWTH AND FOOTPRINT to enter dominant SHARE existing markets positions 8

ONE OF THE LARGEST OPERATORS IN THE U.S. Summary Company Information 1 1. MANAGEMENT ESTIMATES AND SUBJECT TO CLOSING PENDING TRANSACTIONS IN NY, MA & MD 2. MARKET CAP AS OF FEBRUARY 28, 2019 9

DECADES OF EXPERIENCE WITHIN OUR MANAGEMENT TEAM Charles Bachtell Joe Caltabiano Ken Amann David Ellis Zach Marburger CEO & COFOUNDER PRESIDENT & COFOUNDER CFO COO CIO Scott Wilson Jason Erkes Jennifer Clark Emily Fitzgerald John Schetz CXO CCO EVP OPERATIONS DIRECTOR HUMAN RESOURCES GENERAL COUNSEL 10

DIVERSITY OF TOP-TIER EXPERIENCES ACROSS THE TEAM 11

WE ARE BUILDING SCALE ACROSS THE U.S. +120 Million RESIDENTS +866 Million TOURISTS CURRENT OPERATIONS/LICENSED MINDY’S EDIBLES LICENSING IN IL, PA, OH, NV, CA, AZ AND NY, OPPORTUNITY IN OR, WA, CO, OK, MD, AND MA ARE SUBJECT SOLELY NM TO REGULATORY APPROVAL TARGETING EXPANSION IN 12 PENDING LICENSE APPLICATION FL, NJ VA, CT MI

CURRENT PRODUCTION CAPACITY CULTVATION SQUARE FEET DRY FLOWER ANNUAL CAPACITY (LBS) TOTAL # TOTAL FACILITY TOTAL BY TOTAL BY CURRENT EXPANSION CURRENT(5) EXPANSION(5) FACILITIES SQUARE FOOTAGE 2019 YE 2019 YE(5) I L L I N O I S (3) 3 238,000 (3) 39,000 100,000 139,000 14,190 53,170 67,360 118,000 (3) P E N N S Y L V A NI A (3) 1 20,000 85,000 105,000 8,250 43,312 51,563 77,000 (3) O H I O (2) 1 25,000 25,000 50,000 9,376 9,543 18,919 3 650,000 132,000 460,000 592,000 42,408 140,284 182,692 C A L I F O RN I A (2) 1 60,000 N / A 36,000 36,000 N / A 13,578 13,578 N E V A D A A R I Z ON A (1) 2 150,000 128,000 0 128,000 34,265 0 34,265 N E W Y O R K (1) 1 180,000 (3) N / A 100,000 100,000 N / A 44,123 44,123 M A S S A C H U S E T T S (1) 1 150,000 13,000 77,000 90,000 5,071 29,968 35,039 13 1,623,000 357,000 883,000 1,240,000 113,560 333,978 447,539 T O T A L ( 4 ) 1. SUBJECT TO CLOSING PENDING TRANSACTIONS. 2. LOCAL APPROVAL RECEIVED, STATE APPROVAL PENDING. 3. SUBJECT TO EXPANSION / CONSTRUCTION. 4. EXCLUDES MARYLAND PROCESSING FACILITY. 5. BASED ON MANAGEMENT ESTIMATES, SUBJECT TO CHANGE 13

OWNED RETAIL 12 current dispensary locations across 6 states 21 retail licenses 1 and counting 1 Includes licenses awarded for additional locations and pending transactions. 14

CURRENT RETAIL OPERATIONS IL PA OH NV AZ NY MA TOTAL / AVG 5 (3) 6 (1) 1 (3) 4 (3) 3 (3) # STORES 1 1 21 # PATIENTS ( 4 ) 60k 80k 30k (2) N / A 160k 75K 55K 404k EST. 2020E 250k 250k 150k N / A 200k 250K N / A 1.1M PATIENTS POPULATION 13M 13M 12M 3M 7M 20M 7M 75M TOURISTS 114M 40M 43M 43M 44M 244M 28M 556M MEDICAL Yes Yes Yes Yes Yes Yes Yes N / A ADULT USE No No No Yes No No Yes N / A 1. REPRESENTS THE NUMBER OF AUTHORIZED POTENTIAL LOCATIONS. 2. MANAGEMENT EXPECTATIONS OF 2019 PATIENT COUNT. 3. SUBJECT TO CLOSING PENDING TRANSACTIONS. 4. MANAGEMENT ESTIMATE BASED ON AVAILABLE STATE DATA 15

ATTRACTIVE RETAIL PERFORMANCE Average Revenue Per Square Foot $6,500 (1) $5,546 (2) $2,951 (2) $2,951 (2) 1) CRESCO LABS INTERNAL UNAUDITED ANALYSIS 16 2) COSTAR RETAIL ANALYSIS JULY 2017

We have taken a CPG approach to building brands 17

CURRENT CONSUMER LANDSCAPE AND PORTFOLIO OVERALL MARKET CRESCOLABS BRANDS CRESCO WELLNESS/ LIFESTYLE TRUST RELIABLE HOLISTIC REGULAR MEDICINE LIFESTYLE RELIEF REWARD MEDICINAL CONNOISSEUR RESERVE REMEDI 18

• BRAND ETHOS: WITH FAMILIAR FORMATS AND PRECISE DELIVERY SYSTEMS, REMEDI PRODUCTS PROVIDE A SAFE, CONSISTENT AND TRUSTED ALTERNATIVE TO TRADITIONAL MEDICINES. • AUDIENCE: REMEDI WAS DESIGNED AS A REPLACEMENT OPTION FOR TRADITIONAL MEDICATION TO SUPPORT THE CONSUMER BASE THAT NEEDS IT’S CANNABIS TO BE DISCREET, EASILY IDENTIFIABLE, AND PRECISELY DOSED. • PRODUCT PILLARS: -CBD-FORWARD, NON-COMBUSTIBLE -TRADITIONAL MEDICINE DOSING FORMATS -PACKAGING IS DESIGNED TO LOOK LIKE TRADITIONAL MEDICINE APPROX. PERCENTAGE OF SALES: 15% 19

RISE REST REFRESH • BRAND ETHOS : CRESCO ELEVATES EVERYDAY CANNABIS. HIGH QUALITY. TRUE CONSISTENCY. REMARKABLE VALUE. CRESCO IS CANNABIS YOU CAN COUNT ON THAT DELIVERS CONSISTENT CANNABIS PRODUCTS EVERY TIME. • AUDIENCE: CRESCO PRODUCTS ARE IDEAL FOR PEOPLE WHO LOVE TRADITIONAL CANNABIS FORMATS. THIS IS THE CANNABIS BRAND FOR THE STARBUCKS CUSTOMER — ABOVE AVERAGE QUALITY BUT STILL ACCESSIBLE TO EVERYONE. • PRODUCT PILLARS: -THC-FOCUSED, EVERY DAY CANNABIS -PROPRIETARY COLOR CODED FOR EASE OF USE - ALWAYS IN STOCK, EVERY TIME APPROX. PERCENTAGE OF SALES: 55% 20

• BRAND ETHOS: CONNOISSEUR-QUALITY CANNABIS DEMANDS HIGHER EXPECTATIONS FROM CONSUMER AND CULTIVATOR ALIKE. FOCUSED ON EXCLUSIVE GENETICS, CULTIVATION TECHNIQUE & ATTENTION TO DETAIL, RESERVE IS MORE THAN CANNABIS - IT’S A LIFESTYLE. • AUDIENCE: FANS OF RESERVE ARE HIGHLY SELECTIVE AND TURN TO RESERVE FOR A LUXURY EXPERIENCE IN CANNABIS. THEY ARE KNOWLEDGEABLE ABOUT CULTIVATION AND LINEAGE, EXTRACTION AND HARDWARE. RESERVE DELIVERS A SUPERIOR CANNABIS EXPERIENCE FOR THOSE WHO ARE LOOKING FOR TRULY TOP SHELF CANNABIS. • PRODUCT PILLARS: -HAND-SELECTED STRAINS & PROPRIETARY GENETICS -CONNOISSEUR CONCENTRATES & VAPE PENS -TERPENE-RICH, THC FORWARD PRODUCTS APPROX. PERCENTAGE OF SALES: 15%

• BRAND ETHOS: HIGH QUALITY DESSERTS WITH NO CANNABIS FLAVOR, • BRAND ETHOS: FUN, FRUITY CONFECTIONS FOR EVERYDAY CREATED BY THE ACCLAIMED PASTRY CHEF, MINDY SEGAL ENJOYABILITY AND EFFECTIVENESS • AUDIENCE: LOVERS OF DECADENT, CHOCOLATE-FORWARD, EDIBLE • AUDIENCE: CONSUMERS THAT WANT A FUN AND APPROACHABLE TREAT FORMS OF CANNABIS, WHO WILL PAY A PREMIUM FOR SUPERIOR FROM A HIGH QUALITY PRODUCER PRODUCTS • PRODUCT PILLARS: • PRODUCT PILLARS: - INFUSED WITH WINTERIZED SATIVA, INDICA AND HYBRID OILS -INFUSED WITH ODORLESS, FLAVORLESS DISTILLATE -FUN, FRUITY FLAVORS -DECADENT DESSERTS INSPIRED BY MINDY’S RESTAURANTS -GREAT QUALITY AND CONSISTENCY AT AN ACCESSIBLE PRICE POINT -EXCELLENT GIFT OR REPLACEMENT FOR WINE AT DINNER PARTIES • Approx. Percentage of Sales: 10% 22 • Approx. Percentage of Sales: 5%

MARKETING STRATEGY Outreach Awareness & Education In-Store Experience • • • Awareness and education via out of home, social A multi-brand product suite caters to unique Key influencers help Cresco brands reach wider media, and other channels equip consumers with consumer needs and buyer profiles. audiences via social media and exclusive events. functional knowledge of the science and utility of • • Packaging designed to feature proprietary, benefit- The nation-wide industry brand ambassador club offers cannabis. forward communication is informative and intuitive. behind-the-scenes product access and release events. • Industry programming via patient help centers, • • Collateral, merchandising materials, sales Dedicated customer service teams funnel product physician CME events, and robust informational promotions, public marketing, and retail partner feedback to quality assurance and other key functions. materials educate patients and the public. management all contribute to the sales funnel. 23

WE DRIVE WHOLESALE DISTRIBUTION EFFECTIVENESS +28% (1) 100% MARKET SHARE MARKET PENETRATION 100% +30% (2) MARKET PENETRATION MARKET SHARE 100% TBD MARKET SHARE MARKET PENETRATION (1) BASED ON DATA PROVIDED BY THE STATE OF ILLINOIS (2) BASED ON DATA OBTAINED DIRECTLY FROM PA DISPENSARIES 24

OUR CAPABILITIES ALLOW US TO INNOVATE, LEARN, AND SCALE RAPIDLY RETAIL DESIGN & TEST & SCALE INSIGHTS DEVELOP VALIDATE Consumer Awareness New Brands & Formats New Product/Brand Multi-states Access Trials Trend Forecasting Technology Marketing Awareness Evaluation and Consumer Behaviors Intellectual Property Continued Consumer and Improvements Patient Feedback 25