PEI Cannabis - Annual Report 2020

Strategic Review Of Operations PEI Cannabis has a 3-year Strategic Plan which guides its activities through to fiscal 2020-2021. The accomplishment of strategic goals is supported by an annual business plan that detail corporate objectives to be accomplished, and measurable targets used to evaluate the degree to which corporate objectives are being met. The following is an overview of the performance in each of the four (4) strategic pillars. STRATEGIC GOAL 1 - BUSINESS RESULTS STRATEGIC GOAL: To become a key contributor to PEI’s general revenue through business excellence and the continuous improvement in operational effectiveness and efficiency.

CORPORATE OBJECTIVES: 1. Grow sales revenues to continuously displace the illicit market;

2. Grow top-line profitability on cannabis products through tactful supplier relations; and 3. Continuously build on the effectiveness and efficiency of cannabis operations through strategic resource deployment.

PEFORMANCE MEASURES Total Net Sales Revenue

Actual 2018-2019

Target 2019-2020

Actual 2019-2020

% of Target 2019-2020

Target 2020-2021

$6,956,964 $15,317,900 $16,355,262

106.77% $14,633,315

Gross Margin

24.88%

28.70%

24.39%

84.98%

25.50%

Net (Loss) income

$(529,095)

$310,000

$653,401

210.77% $(137,100)

NET RECEIPTS

APPLICATION OF NET RECEIPTS

Recognition of Capital Assets

Other Income

Edibles

3%

Accessories

1%

4%

1%

7%

Ingested Extracts

0% Seeds

22% Operating Expenses

0% Beverages

15% Pre-Rolled

NET RECEIPTS 2020

APPLICATION NET RECEIPTS 2020

72% Dried Flower

75%

Suppliers

14 www.peicannabiscorp.com • 2019 Annual Report