Rubicon Organics, Inc. · TSXV:ROMJ
Rubicon Organics — Investor Presentation (December 2023)
28 slides from Rubicon Organics's investor presentation, Dec 4, 2023
Slide 1: Premium Brand Success Fueled by Operational Execution
Premium Brand Success Fueled by Operational Execution TSXV: ROMJ OTCQX: ROMJF Investor Presentation, November 2023
Slide 2: Disclaimer
Disclaimer This presentation is not, and under no circumstances is to be construed as, a anticipated, estimated or intended. There can be no assurance that forward-looking their entire investment. An investment in the Company may have tax consequences prospectus, or advertisement or a public offerin
Slide 3: Corporate Overview
Corporate Overview We are a Leader in the Canadian Cannabis Financial Highlights: Sector Producing Premium & Super- Premium Branded Cannabis Products 6 Consecutive Quarters Proudly delivering BC premium & organic certified cannabis nationally of Positive AEBITDA 3 flagship brands, prominent bran
Slide 4: Rubicon Organics at a Glance
Rubicon Organics at a Glance 2.0% 5.6% Market Premium Market Share1 Share2 125,000 ft2 26.0% Hybrid Greenhouse Topical market share4 in Delta, BC $6.8 million $4.3 million Operating cash flow Adjusted EBITDA3 for for 12 mo. to Q3’23 12 mo. to Q3’23 $33 million $10.0 million Market Cap Net Revenue fo
Slide 5: Budtenders rank 2 of our brands in their top Most Recommended
Budtenders rank 2 of our brands in their top 3 “Most Recommended” flower in Canada. 1Brightfield Group Canada Budtender Study 2023
Slide 6: Canada's Favourite Cannabis Topical
Canada’s Favourite Cannabis Topical #1 Topical in Canada 26.0% Market Share Hifyre data for topical products covering the three months ending September 30th, 2023 with 26.0% market share and #1 ranking
Slide 7: Building Brands from Consistent Execution
Building Brands from Consistent Execution Brand awareness and Aim to become the leading foundation set for expansion premium cannabis company with more profitable product Winner AR Cannabis in Canada formats Cup 2023 “Best Gas” Simply Bare Well-positioned for growth Passionately delivering - BC Orga
Slide 8: Delivering Our Brand Promise of Quality = Loyal Customer
Delivering Our Brand Promise of Quality = Loyal Customer Hand trimmed. Hand packaged. Without irradiation. Powered By The Sun Organic Certified Full-spectrum, natural sunlight not only allows plants to Everything is grounded in our living soil - a secret blend express their full aroma but it's also
Slide 9: Leadership Team, Independent Directors, Management
Leadership Team Independent Directors Management Len Boggio Director Karen Proud Director 40+ years as auditor, advisor, 20+ years experience in government and independent director of relations, policy development, and public, private, and regulatory and legislative affairs. government corporations
Slide 10: Well-Rounded Brand Portfolio Launched Nationally
Well-Rounded Brand Portfolio Launched Nationally Generating positive gross margin on every SKU Brand Super-Premium Premium Mainstream Super-Premium Premium Positioning (Topicals / Wellness) (Concentrates) Product • Dried Flower • Dried Flower • Dried Flower • CBD Relief Stick • Diamonds Offering • P
Slide 11: Operations Driving Our Brand Success
Operations Driving Our Brand Success Delta Facility 100%-owned 20-acre property in Delta, British Columbia Organic Certified with living soil delivering terpene rich flavors to consumers Premium hang-dry and cure process Production delivering consistent premium quality flower 125,000 sq. ft. hybrid
Slide 12: 2023 Key Operating Priorities – Drive Profitability
2023 Key Operating Priorities – Drive Profitability Optimize Maximize Canadian Yield: Premium Opportunity: • Annualized run rate hitting production capacity • Product mix focus to maximize gross margin from of 11,000 kg of premium quality flower each gram produced from Delta Facility • Increase rati
Slide 13: Growth Opportunities from Brands Built & Execution to Date
Growth Opportunities from Brands Built & Execution to Date Ready for Growth Organic Leveraging the Power Harnessing ROMJ Strength to Take Growth of Our Premium Brands Advantage of a Distressed Industry • Delta: Yield improvement through H2’23 • Profitable Brand Growth applying • Opportunistic view o
Slide 14: Key Financial Milestones Achieved
Key Financial Milestones Achieved 2021 2022 2023 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Cashflow Operating Positive 1st Quarter Operating 1st Quarter Free 2nd Quarter Operating 3rd Quarter Operating 4th Quarter Operating 5th Quarter Operating Cashflow Positive Cashflow Positive Cashflow Cashflow Positive Cashflow
Slide 15: Q3 2023 Rolling 12-month Financial Results
Q3 2023 Rolling 12-month Financial Results Complete brand portfolio launch and market expansion providing growth and positive gross profit $41,620 $41,120 $39,170 Rolling 12-month basis: $35,520 $31,350 31%+ Revenue growth 67%+ Gross Profit before FV adjustments $16,260 $15,390 $14,500 $12,220 $9,24
Slide 16: Q3 2023 Financial Results Adjusted EBITDA
Q3 2023 Financial Results Adjusted EBITDA (C$ ‘000’s) Poised for Significant Adjusted EBITDA1 Growth Operating Leverage: Increasing Revenues Over a Fixed Cost Base For the 12 months ended in Q3 2023, the Company achieved Adjusted EBITDA1 of $4.3M One of only a handful of LPs to achieve positive Ad
Slide 17: Growth Story: Premium Sales Driving Market Growth
Growth Story: Premium Sales Driving Market Growth +$300 million Premium market returns to growing faster than total market, spring / summer 2023 deceleration with short- Potential Growth of Premium term price compression & fire sales. Our outlook for premium growth to rebound in 2024 as competitors
Slide 18: Canadian Cannabis Industry Today & Our Right to Win
Canadian Cannabis Industry Today & Our Right to Win Canadian Cannabis Canadian Cannabis Rubicon’s Market Companies Opportunity Legal market: Struggling to operationally execute Market is Growing • Over $4.5 billion1 Over-levered with high fixed cost base • 14% Market growth to September 20233, and A
Slide 19: 2023 Company Outlook
2023 Company Outlook Continued Growth in Net Revenue in Full Year 2023 Increase in Gross Profit and AEBITDA in 2023 Operating Cashflow Positive 2023 Refer to forward looking guidance and the Company’s materials filed on Sedar+
Slide 20: Company History & Key Milestones Delivered
CONSISTENT EXECUTION Company History & Key Milestones Delivered 2015-2018 2019 2020 2021 2022 2023 2 0 1 5 Q 1 Q 2 Established in US, Cdn sub’s License to Cultivate, Delta Facility Sell WA Asset & exit US business Launch Wildflower CBD Sticks Launch 1964 brand nationally Launch Infused Cannabis Edib
Slide 21: Market Information
Market Information 56.2M 43% As at November 13, 2023 # of Shares % Common shares of common shares outstanding outstanding hold high alignment, Management & Insiders 24,373,871 43% management and insiders Tight share structure Public Float 31,817,790 57% Consistent insider share purchases Total Outst
Slide 22: Nature at its Rawest
Nature at its Rawest Built to delight discerning consumer searching for the highest quality, newest and most flavorful products. Top 3 Most Recommended Brand by Budtenders in Canada1. Proprietary organic Hand trimmed Exotic flavour certified, living soil and hand packed. forward strains providing te
Slide 23: Celebrate the Rebellious Spirit of the 60's
Celebrate the Rebellious Spirit of the 60’s Designed to recruit legacy consumers by offering classic organic cultivars, 1964 is one of Canada’s fastest growing cannabis brand Top 3 Most Recommended Brand by Budtenders in Canada1. Sun Organic Grown Soil No Artificial Inputs #1 Premium Brand in Canada
Slide 24: Connect People with the Healing Power of Plants
Connect People with the Healing Power of Plants was created to inspire holistic wellness by offering the best-performing CBD products that consumer can integrate in their daily routine. #1 Topical Brand in Canada1 19.8% Market Share 1Hifyre data for topical products covering the twelve months ending
Slide 25: Hard Work Makes Great Cannabis
Hard Work Makes Great Cannabis targets price conscious daily user offering incredible value large pack formats Large format Pre-rolls and offerings milled product
Slide 26: Environmental, Social & Governance Leadership
Environmental, Social & Governance Leadership is Core to Executing our Strategy A few highlights from our 2022 ESG Report: 1st Cannabis Producer in the World to issue an ESG Report and 64% Local hiring: continuing of our workforce live within the local community of our Delta greenhouse We believe ES
Slide 27: Mission Vision Values
MISSION VISION VALUES Grow the best cannabis Be the global brand leader Excellence on earth, for the earth in organic cannabis Freedom Quality Integrity
Slide 28: Contact Us
CONTACT US Investor Relations ir@rubiconorganics.com www.rubiconorganics.com Rubicon Organics Inc. +1-437-929-1964 505 – 744 W. Hastings Street Vancouver, BC V6C 1A5 TSXV: ROMJ | OTCQX: ROMJF
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