Q1 FY 2020 Conference call

Presentation

NASDAQ/TSX: NEPT ▫ Headquartered in Laval, Quebec, Canada

August 14, 2019

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DISCLAIMER

CAUTION REGARDING NON-IFRS FINANCIAL MEASURES

The Corporation uses two adjusted financial measures, Adjusted Segment Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted

Segment EBITDA) and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) to assess its operating performance.

These non-IFRS financial measures are directly derived from the Corporation’s financial statements and are presented in a consistent manner. The

Corporation uses these measures for the purposes of evaluating its historical and prospective financial performance, as well as its performance relative to

competitors. These measures also help the Corporation to plan and forecast for future periods as well as to make operational and strategic decisions. The

Corporation believes that providing this information to investors, in addition to IFRS measures, allows them to see the Corporation’s results through the

eyes of management, and to better understand its historical and future financial performance.

Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have

standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in

isolation. The Corporation uses Adjusted Segment EBITDA and Adjusted EBITDA to measure its performance from one period to the next without the

variation caused by certain adjustments that could potentially distort the analysis of trends in our operating performance, and because the Corporation

believes it provides meaningful information on the Corporation’s financial condition and operating results. Neptune’s method for calculating Adjusted

Segment EBITDA and Adjusted EBITDA may differ from that used by other corporations.

Neptune obtains its Adjusted Segment EBITDA measurement by adding depreciation and amortization and stock-based compensation to segment income

(loss) from operating activities before corporate expenses. Neptune obtains its Adjusted EBITDA measurement by adding to net income (loss), net finance

costs and depreciation and amortization and by subtracting income tax recovery. Other items such as stock-based compensation, litigation provisions,

acquisition costs and severance and related costs that do not impact core operating performance of the Corporation are also added back as they may vary

significantly from one period to another. Adjusting for these items does not imply they are non-recurring.

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DISCLAIMER

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Statements in this presentation that are not statements of historical or current fact constitute ‟forward-looking statements” within the meaning of the

U.S. securities laws and Canadian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other

unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or

implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to

consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," "will," "should," or "plans" to be uncertain and

forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this

presentation. Forward-looking information in this presentation includes, but is not limited to, information or statements about our ability to successfully

develop, produce, supply, promote or generate any revenue from the sale of any cannabis-based and hemp-based products in the legal market.

The forward-looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement and the ‟Cautionary

Note Regarding Forward-Looking Information” section contained in Neptune’s latest Annual Information Form (the ‟AIF”), which also forms part of

Neptune’s latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on

the Investors section of Neptune’s website at www.neptunecorp.com. All forward-looking statements in this presentation are made as of the date of this

presentation. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or

otherwise, except as required by law. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that

are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities

commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under ‟Risk Factors”.

AGENDA

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Q1 FY2020 Corporate Highlights

Q1 FY2020 Financials Highlights

Update on Canadian expansion (Phase II & IIIA)

SugarLeaf acquisition

Outlook & Vision of New Leadership

Q&A

CORPORATE HIGHLIGHTS

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3-year contract with Tilray to extract a minimum of 125,000 kg of biomass

3-year agreement with TGOD for extraction and turnkey packaging solutions

On June 17, Neptune received a license amendment at its Sherbrooke facility

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FINANCIAL HIGHLIGHTS

Nutraceutical revenues for Q1FY20 of $4.3 million, decreased slightly vs $5.2 million in Q1FY19

Cannabis revenues were impacted by capacity constraints

Net loss of $6.5 million for Q1FY20 versus a net loss of $4.1 million in Q1FY20

Q1FY20 Adjusted EBITDA loss of $3.6 million compared to Q1FY19 Adjusted EBITDA loss of $2.3 million, reflecting investments in our cannabis operations

Strengthen our balance sheet

Pro-Forma cash balance of C$39m

Successful financing realized in a difficult macro context

Perceptive Advisors were the lead participant

Solid endorsement from our main shareholder

Strong participation by management & Directors

Chairman & CEO invested $5m

Aligns leadership with shareholders

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CLOSING OF US$41M PRIVATE PLACEMENT

Capital Structure

Fully Diluted Common Shares 115,084,273

Fully Diluted Market Cap (C$6.57) C$756,104,000

Pro-Forma Cash Position¹ C$38,975,000¹

Total Debt² C$4,567,445²

¹Pro-forma Neptune’s US$41m private placement and the US$12m initial cash consideration paid to acquire the assets of SugarLeaf Labs with related transaction costs

² As at June 30, 2019

Phase II capacity is expected to increase capacity by ~7x

Cold ethanol equipment to be commissioned in coming weeks

Capacity to increase from 30,000 kg to 200,000 kg

Initiating Phase IIIA expansion of ~1,300,000 kg

Retrofit expected to be completed by calendar year-end

Health Canada approval expected thereafter

Capacity expansion expected to translate into significant revenue growth in coming quarters

Phase II expansion fully committed

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CANADIAN CAPACITY EXPANSION UNDERWAY

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Provides a platform to capture the CBD wellness opportunity in the US

Tolling services, formulation, blending

Complete white label turnkey solutions

Forest Remedies our B2C brand

Cold ethanol technology produces high quality extracts

Broad spectrum extracts and refined full spectrum extracts are in high demand

Rigorous testing protocols to ensure traceability back to the farm

Acquisition closed on July 24, 2019

Initial consideration of US$18m which could reach US$150m with performance milestones

Purchase price would represent a 5x EBITDA multiple

Capacity expected to reach 1,500,000 kg by December 2019

Opportunity to further expand if warranted

SUGARLEAF – NEPTUNE’S ENTRY INTO THE U.S. MARKET

Existing facilities could support in excess of $450 million in revenues

Long-term contracts provide revenue visibility

Assuming a conservative 50% capacity utilization rate

Adjusted EBITDA margins could exceed 40%

High automation at Sherbrooke facility expected to reduce operational costs

Expansion plans fully funded

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STRONG EARNINGS POWER

Vision Become a leading supplier of cannabis and hemp extracts ingredients and finished products

Strategy

Establish large scale extraction capabilities in Canada and the United-States

Innovate and acquire unique delivery forms and technologies

Invest in product development to create new verticals

Focus on the Health & Wellness and CPG sectors

Create an incubator of technologies with Neptune Ventures

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VISION & STRATEGY FORWARD

APPENDIXFinancial Information

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Q1 FY2020 (1)

Nutraceutical Cannabis Corporate Total

Revenues 4,293 38 30 4,361

Adjusted EBITDA 530 (1,623) (2,490) (3,583)

Net income (loss) - (6,452)

FINANCIAL RESULTS

(1) Nutraceutical and Cannabis are two segments of Neptune. The corporate column represents unallocated costs which are corporate G&A expenses, net finance costs and income taxes.

Income Statement(in thousands of CAD $)

Q1 FY2019 (1)

Nutraceutical Cannabis Corporate Total

Revenues 5,168 - - 5,168

Adjusted EBITDA 633 (1,302) (1,588) (2,257)

Net income (loss) - (4,100)

Income Statement(in thousands of CAD $)

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FINANCIAL POSITION

June 30, 2019 March 30, 2019

Cash, cash equivalents and short-term investments 5,375 9,867

Total debt 4,567 3,467

Net proceeds from the private placement 51,600 -

Initial cash consideration for SugarLeaf ¹ (18,000) -

Proforma net cash position 34,408 6,400

Financial Position(in thousands of CAD $)

(1) Includes transaction costs

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Bringing Decades of Wellness and Nutrition Experience to the Cannabis Industry