Organigram Global Inc. · TSX:OGI
Organigram Global — Q4 2024 Earnings Presentation
31 slides from Organigram Global's earnings presentation, Dec 18, 2024
Slide 1: Investor Presentation Q4 Fiscal 2024
INVESTOR PRESENTATION NASDAQ (OGI) TSX (OGI) Q4 Fiscal 2024 09| 30 | 24 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of December 18, 2024, except where otherwise undue reliance on these forward-looking statements, which speak only as of the MD&A") incorporated by reference in this presentation and filed under stated. The information contained in this presentation is
Slide 3: Moncton's Flagship Facility
MONCTON’S FLAGSHIP FACILITY AN AWARD-WINNING LICENSED PRODUCER OF CANNABIS WITH A PRESENCE ACROSS CANADA AND A GROWING INTERNATIONAL FOOTPRINT Our Vision: To be a respected global leader in the emerging cannabis movement. Our Mission: To delight consumers with trusted brands that deliver innovative
Slide 4: Organigram Key Strengths
ORGANIGRAM KEY STRENGTHS The overall market leader in Canada with #1 positions in the fastest growing product categories of vapes and pre-rolls and top three positions in every major product category1 Five state-of-the-art specialized facilities including the largest indoor growing operation in Cana
Slide 5: #1 in Canada & Top 3 Market Share Across All Major Categories
#1 IN CANADA & TOP 3 MARKET SHARE ACROSS ALL MAJOR CATEGORIES RECREATIONAL FLOWER MILLED PRE-ROLLS INFUSED VAPES GUMMIES CONCENTRATES HASH MARKET (including milled) FLOWER (including IPRs) PRE-ROLLS (including hash) #1 #3 #1 #1 #2 #1 #3 #1 #1 See "Cau tion ary Note Reg arding Forward-Loo king Statem
Slide 6: Coast-to-Coast Geographic Strength
COAST-TO-COAST GEOGRAPHIC STRENGTH Canada’s Largest Pure Play Cannabis Company By Market Share YT NT NU BC NL AB #1 SK / MB QC #1 ON #1 ATLANTIC #1 PE CANADA #1 #4 NB Moncton Facility Lac-Supérieur NS Winnipeg Facility Lac-Supérieur Facility Facility London & Aylmer Facilities (Motif) See "Cau tion
Slide 7: Portfolio Anchored by Two Powerhouse Brands
PORTFOLIO ANCHORED BY TWO POWERHOUSE BRANDS LTM RETAIL BRAND LTM $ SHARE(1) DISTRIBUTION SALES(1) $228 4.3% 97% million (+0.6 pts) $158 3.0% 90% million (+0.9 pts) Sou rce : HiFyre, F24 (O ct – Sep t) Retail S ales, Trellis Distribu tion , October 01, 2024 to O ctobe r 3 1, 202 4 7 1. LTM a s of 3 0
Slide 8: Brand Portfolio Delivers Strong Coverage Across All Segments and Categories
BRAND PORTFOLIO DELIVERS STRONG COVERAGE ACROSS ALL SEGMENTS AND CATEGORIES 8
Slide 9: Five State-of-the-Art Facilities Strategically Located Across the Country
FIVE STATE-OF-THE-ART FACILITIES STRATEGICALLY LOCATED ACROSS THE COUNTRY Winnipeg, MB Aylmer, ON London, ON Lac-Supérieur, QC Moncton, NB • Edibles facility with • Leverage Aylmer best-in-class • Centralized distribution hub to • Producing hang-dried, hand- • >85,000+ kg/year of low-cost, automated
Slide 10: Continuous Efficiency Improvements
CONTINUOUS EFFICIENCY IMPROVEMENTS 2024 EFFICIENCY HIGHLIGHTS 200 Yield Per Plant (grams) • Realized $9.1 million in annualized cost savings 180 and identified additional savings in early Fiscal 2025 160 • Achieved record yields for last two consecutive 140 quarters due to cultivation improvements a
Slide 11: Focused on Global Expansion
FOCUSED ON GLOBAL EXPANSION Organigram is deploying capital to establish a larger global presence while focusing on growing and diversifying its international revenue • Capital raised in Fiscal 2024: F’24 International Sales • $124.6 million follow-on investment from BAT to establish the $83.1 $4.1
Slide 12: Organigram's Global Footprint
ORGANIGRAM’S GLOBAL FOOTPRINT 12
Slide 13: BAT Investments in Organigram
BAT INVESTMENTS IN ORGANIGRAM Product Development Collaboration March 2021 - $221 million strategic investment from subsidiary of BAT for 19.9% equity interest1 in Organigram • Established the Product Development Collaboration ("PDC") with formation of a Center of Excellence ("CoE") at Moncton camp
Slide 14: Product Development Collaboration
PRODUCT DEVELOPMENT COLLABORATION FAST Nanoemulsion technology for ingestible products is the first patent-pending innovation to be commercialized leveraging the output of the PDC Innovation Highlights • Organigram has unveiled the results of what is believed to be the largest pharmacokinetic (PK) s
Slide 15: Jupiter Investment Pool
JUPITER INVESTMENT POOL Priority Investment Pillars The $83.1 million Jupiter investment pool targets Geographies investments in emerging cannabis opportunities • U.S. • Emerging global markets • All potential investments are made in alignment with Organigram’s strategic vision for the future, focus
Slide 16: Strategic Investments
STRATEGIC INVESTMENTS 16
Slide 17: Established Foothold in European Market
ESTABLISHED FOOTHOLD IN EUROPEAN MARKET • In June 2024, Organigram made its second Jupiter investment into Germany- based Sanity Group, agreeing to invest an approximate $21 million • Concurrent to the investment, Organigram and Sanity Group entered into a new supply agreement to include significant
Slide 18: Investment in U.S. Hemp-Derived Cannabinoids
INVESTMENT IN U.S. HEMP- DERIVED CANNABINOIDS • In March 2024, Organigram made its first Jupiter investment into U.S.-based OBX as a convertible note for USD$2 million • The investment in OBX provides a further footprint in the U.S., which was a strategic priority set out in the Jupiter investment s
Slide 19: Investment in Seed Genetics & THCV
INVESTMENT IN SEED GENETICS & THCV • In May of 2023, Organigram made its first investment into the U.S. cannabis market by issuing a strategic convertible loan of up to USD$8 million to Phylos in three tranches • Phylos has enabled Organigram to launch products containing whole-flower THCV • Organig
Slide 20: Investment in Disruptive Vaping Technology
INVESTMENT IN DISRUPTIVE VAPING TECHNOLOGY • In March of 2023, Organigram invested $5.5 million into Green Tank Technologies Corp. ("Greentank"), a vape R&D firm and hardware manufacturer • Greentank's heating technology is the first meaningful innovation in the vape space in almost a decade • More
Slide 21: Quarterly Updates & Highlights
QUARTERLY UPDATES & HIGHLIGHTS Q4 F2024 21
Slide 22: A Leading Canadian LP
A LEADING CANADIAN LP • Organigram held the #2 national market share position as of the end of Q4 Fiscal 20241 • Subsequent to quarter-end, Organigram acquired Motif to become the #1 LP in Canada by market share2 • Organigram is currently #1 in vapes, pre-rolls, hash & concentrates, and milled flowe
Slide 23: Q4 & F2024 Highlights
Q4 & F2024 HIGHLIGHTS • Fiscal 2024 adjusted EBITDA1 increased 55%, compared to Comparative Fiscal 2023. • Q4 Fiscal 2024 net revenue increased 10% compared to Q3 Fiscal 2024 and 22%, compared to the Comparative Q4 Fiscal 2023. • Q4 adjusted EBITDA1 increased 69% sequentially and reached 13% of net
Slide 24: Quarterly Revenue & Adjusted Gross Margin
QUARTERLY REVENUE & ADJUSTED GROSS MARGIN1 2. Q4 F2023 is presented as the unaudited three-month period from July 1, 2023-September 30, 2023 37% 36% 31% $69.9 31% $63.6 $56.2 $56.3 $57.4 $48.4 Consistent improvement in $ millions gross margin and rate 20% 19% $41.1 $44.7 $36.7 $36.5 $37.6 $32.8 1. A
Slide 25: Adjusted EBITDA
ADJUSTED EBITDA1 $5.9 $3.5 Improving adjusted EBITDA $ millions $0.1 $0.1 -$1.0 1. Adju sted EBITDA is a no n-IFRS Financial Measure not defined by a nd does n ot have any stand ardized meaning und er IFRS a nd might not be compara ble to similar fina ncia l -$2.9 measures disclosed by oth er issuer
Slide 26: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY • On September 30, 2024, the Company had cash of $133.4 million (including restricted cash) • In December 2024, the Company completed its acquisition of Motif, reducing its cash position by the cash consideration of the Motif transaction of $50 million and approxi
Slide 27: Q4 Fiscal 2024 Key Financial Metrics
2. Q4 F2023 is presented as the unaudited and unreviewed three-month period from July 1, 2023-September 30, Q4 FISCAL 2023 Comparative % KEY FINANCIAL METRICS Q4'24 Q4’232 Change 2024 KEY Gross revenue 68,877 56,179 24% Excise taxes (25,179) (19,481) 29% FINANCIAL Net revenue 44,698 36,698 22% Cost
Slide 28: Q4 Fiscal 2024 Select Balance Sheet Metrics
Q4 FISCAL 2024 SELECT BALANCE SHEET METRICS September 30, September 30, SELECT BALANCE SHEET METRICS 2024 2023 % Change Cash & short-term investments (excluding restricted cash) 133,426 51,757 158% Biological assets & inventories 82,524 80,953 2% Other current assets 86,996 49,596 75% Accounts paya
Slide 29: Simplified Pro Forma Capitalization
SIMPLIFIED PRO FORMA CAPITALIZATION 1 2 3 Organigram (9) Organigram Organigram Pro Forma Ownership Pro Forma Organigram Pro Forma Pro Forma Key Financials Pre-Motif Acquisition BAT Final Tranche of Motif Acquisition Follow-on Investment 13% Basic Common Shares 108.9 million(1) 129.3 million(4) 137.0
Slide 30: Q4 Fiscal 2024 Capital Structure
Q4 FISCAL 2024 CAPITAL STRUCTURE September 30, Sept 30, in $000s 2024 2023 Long-term debt 25 79 Shareholders’ equity 305,989 271,623 Total debt and shareholders’ equity 306,014 271,702 in 000s Outstanding common shares 108,585 103,801 Options 2,691 2,830 Warrants 4,236 4,236 Top-up rights 7,079 2,03
Slide 31: A Canadian Cannabis Leader
A CANADIAN CANNABIS LEADER NASDAQ (OGI) TSX (OGI) 31