Organigram Global Inc. · TSX:OGI
Organigram Global — Q3 2024 Earnings Presentation
43 slides from Organigram Global's earnings presentation, August 2024
Slide 1: Investor Presentation Q3 Fiscal 2024
INVESTOR PRESENTATION NASDAQ (OGI) TSX (OGI) Q3 Fiscal 2024 06| 30 | 24 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of June 30, 2024, except where otherwis e stated. looking information include factors and risks as disclosed in the Company’s most information under the heading "Cautionary Statement Regarding Certain Non- The information contained in this presentatio
Slide 3: Moncton's Flagship Facility
MONCTON’S FLAGSHIP FACILITY AN AWARD-WINNING CANNABIS LICENSED PRODUCER 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 can
Slide 4: Organigram Key Strengths
ORGANIGRAM KEY STRENGTHS One of the strongest Three state-of-the- Distribution spans all Innovation focus with Consistently a top 3 balance sheets art specialized Canadian provinces with several first-to-market LP in national market among LPs facilities & the seven international export launches incl
Slide 5: A Leader in Product Innovation
A LEADER IN PRODUCT INNOVATION Organigram is focused on innovation informed by consumer research, resulting in market share leadership in several categories • Revolutionized hash with patent-pending SHRED X Rip-Strips • SHRED brand has achieved $200 million in annual retail sales1 • First to market
Slide 6: Focused on Global Expansion & Efficiency
FOCUSED ON GLOBAL EXPANSION & EFFICIENCY Organigram has completed significant efficiency-driving capex projects and is deploying capital to establish a larger global presence • Capital raised in Fiscal 2024: • $124.6 million follow-on investment from BAT to fund international and strategic growth in
Slide 7: Organigram's Global Footprint
ORGANIGRAM’S GLOBAL FOOTPRINT 7
Slide 8: 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 • Product Development Collaboration ("PDC") with formation of a Center of Excellence ("CoE") at our Moncton campus • Focused
Slide 9: 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 in fall 2024 Innovation Highlights • Organigram has unveiled preliminary results of what is believed to be the largest p
Slide 10: Jupiter Investment Pool
JUPITER INVESTMENT POOL Priority Investment The $83 million Jupiter investment pool targets investments in emerging cannabis opportunities 1 Pillars Geographies • USA • All potential investments are made in alignment with Organigram’s strategic • Emerging global vision for the future, focusing on lo
Slide 11: Domestic & International Performance
DOMESTIC & INTERNATIONAL PERFORMANCE Organigram continues to grow domestic market share in key categories and over-indexes in international sales as a proportion of Canadian exports: Canada Rest of World • #3 market share position in Canada1 • In Fiscal 2023 Organigram shipped an estimated 10% of al
Slide 12: State of the Art Facilities
STATE OF THE ART FACILITIES Organigram's legacy of execution excellence & stability is established in the Canadian market, supported by three fully-scaled, state-of-the-art facilities: Moncton (Flagship) Winnipeg Lac-Supérieur • One of the largest indoor cannabis facilities in • 51,000 sq. ft. edibl
Slide 13: Brand Portfolio
BRAND PORTFOLIO 13
Slide 14: Well-Rounded Brand Portfolio
WELL-ROUNDED BRAND PORTFOLIO Recently hit $200 million in annual retail sales Pricing Segment Super Value Value Value Mainstream Mainstream Mainstream Premium Craft Pre-Milled Flower, Pre-Rolls, Pre-Roll Joints, Available / Whole Flower, Whole Flower, Hashish, Whole Flower Infused Gummies, CBD & Min
Slide 15: Dynamic Brand Performance
DYNAMIC BRAND PERFORMANCE The #1 LP in Hash1 CBD Market Share Leader Top 3 LP in Pre-Rolls1 • Organigram holds 20% of national market • The best-selling CBD gummy brand in Canada1 • Grew to over 16% market share of tube-style share in hash1 • Robust portfolio focusing on an array of minor pre-rolls
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 ~$21 million • Concurrent to the investment, Organigram and Sanity Group have entered into a new supply agreement to include significantly higher
Slide 18: Investment in US Hemp-Derived Cannabinoids
INVESTMENT IN US HEMP- DERIVED CANNABINOIDS • In March 2024, Organigram made its first Jupiter investment into US-based OBX as a convertible note for US$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 strateg
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 US $8 million to Phylos in three tranches • Phylos has enabled Organigram to launch of products containing whole-flower THCV • Organ
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: Investment in Biosynthesis
INVESTMENT IN BIOSYNTHESIS BIOSYNTHESIS How it works? A proprietary Biosynthesis can be used to produce cannabinoid cannabinoids that are identical to those • 49% ownership (if convertible debt converted) of Hyasynth Biologicals Inc., a manufacturing produced by the plant itself. system that can pio
Slide 22: Quarterly Updates & Highlights Q3 F2024
QUARTERLY UPDATES & HIGHLIGHTS Q3 F2024 22
Slide 23: A Leading Canadian LP
A LEADING CANADIAN LP • Organigram held the #3 national market share position1 • Held the #1 position in milled flower, the #1 position in hash, the #3 position in gummies, the #3 position in infused pre-rolls, and the #3 position in pre-rolls nationally1 • Organigram is a top 3 LP in Canada in ever
Slide 24: Q3 F2024 Highlights
Q3 F2024 HIGHLIGHTS • Net revenue of $41.1 million increased 25% over the prior year period • Positive adjusted EBITDA1 of $3.5 million up from $(2.9) million in prior year period • Established European foothold with $21 million strategic investment in Sanity Group, a leading German cannabis company
Slide 25: Quarterly Revenue
QUARTERLY REVENUE $63.6 $56.3 $57.4 $53.6 $48.4 $41.1 $36.5 $37.6 $34.5 REVENUE $32.8 $ millions 1 Q3 F23 Q4 F23 Q1 F24 Q2 F24 Q3 F24 Net Revenue Gross Revenue 1. Q4 F23 represents a 4-month period due to a change in Organigram's year end. Net and gross revenue here 25 have been normalized to reflec
Slide 26: Adjusted Gross Margin
ADJUSTED GROSS MARGIN $14.6 $11.7 $11.2 36% 2. Q4 F’23 represents a 4-month period due to a change in Organigram's year end. Adjusted gross 31% margin dollars here have been normalized to 31% ADJUSTED reflect a 3-month period. GROSS MARGIN 1 $ millions and % of $6.1 $5.9 Net Revenue 19% 17% 1. Adjus
Slide 27: Adjusted EBITDA
ADJUSTED EBITDA $3.5 2. Q4 F2023 represents 4 months due to a change in Organigram's year end. Adjusted EBITDA here has been normalized to reflect ADJUSTED a 3-month period. EBITDA 1 $ millions $0.1 -$1.0 -$1.8 1. Adjusted EBITDA is a non-IFRS Financial Measure not defined by and does not have any s
Slide 28: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY • On June 30, 2024, the Company had cash of $89.5 million (including restricted cash) • In April 2024, the Company closed a financing for gross proceeds of $28.8 million • Pro-forma cash position of ~$173 million upon the anticipated closure of the final BAT tranc
Slide 29: Q3 Fiscal 2024 Key Financial Metrics
Q3 FISCAL Q3'24 Q3'23 % Change 2024 KEY Gross revenue 63,605 48,409 31% Excise taxes (22,545) (15,624) 44% FINANCIAL Net revenue 41,060 32,785 25% METRICS Cost of sales 27,173 32,289 (16)% Gross margin before fair value changes to biological assets & inventories sold 13,887 496 2700% Realized fair v
Slide 30: Appendix
APPENDIX 30
Slide 31: March 2021 BAT Transaction Summary
MARCH 2021 BAT TRANSACTION SUMMARY • Subsidiary of BAT subscribed for 58.3M common shares of Organigram, which represented a 19.9% equity interest in March 2021 1 on a post-transaction basis • Total proceeds to Organigram in March 2021 of ~$221 million (the “Investment Proceeds”) Investment • The pr
Slide 32: November 2023 BAT Transaction Summary
NOVEMBER 2023 BAT TRANSACTION SUMMARY • Subject to requisite Organigram shareholder approval, regulatory approvals and other conditions, subsidiary of BAT to subscribe for, in aggregate, ~38.7 million shares of Organigram, over three tranches, at $3.2203/share. • Total gross proceeds to Organigram o
Slide 33: An uplifting & vibrant value brand focused on convenience
An uplifting & vibrant value brand focused on convenience. Tropic Thunder 7g pre-milled Wild Berry Blaze SHRED’ems Gnarberry 1g 510 vape SHRED X Rip Strips 33
Slide 34: An imaginative brand with iconic strains and stellar extracts
An imaginative brand with iconic strains and stellar extracts. Holy Mountain Mac-1 3.5 g, R*ntz 3.5g, Pressed Hash 34
Slide 35: Delivering high-quality ounces in a variety of strains
Delivering high-quality ounces in a variety of strains. Pink Cookies I.C.C. Ultra Sour 35
Slide 36: CBD and minor cannabinoid gummies
CBD and minor cannabinoid gummies, designed for a personal wellness ritual. Monjour Berry Good Day Monjour Orchard Medley 36
Slide 37: A premium brand focused on flower & innovation
A premium brand focused on flower & innovation. Limelight 3.5g dried flower Edison JOLTS – Electric Lemon Cherry Limelight Bubble Hash Joints 37
Slide 38: Premium hash, inspired by the timeless tradition of hashish
Premium hash, inspired by the timeless tradition of hashish. Tremblant 2g Hash 38
Slide 39: Craft cannabis featuring rare cultivars
Craft cannabis featuring rare cultivars grown with utmost attention and care. Laurentian Saisons 3.5 g 39
Slide 40: Craft cannabis featuring rare cultivars
Craft cannabis featuring rare cultivars grown with utmost attention and care. Laurentian Saisons 3.5 g 40
Slide 41: Q3 Fiscal 2024 Select Balance Sheet Metrics
Q3 FISCAL 2024 SELECT BALANCE SHEET METRICS September 30, SELECT BALANCE SHEET METRICS June 30, 2024 2023 % Change Cash & short-term investments (excluding restricted cash) 80,067 33,864 114% Biological assets & inventories 84,079 80,953 3% Restricted Cash 9,440 17,893 (38%) Other current assets 4
Slide 42: Q3 Fiscal 2024 Capital Structure
Q3 FISCAL 2024 CAPITAL STRUCTURE June 30, Sept 30, in $000s 2024 2023 Current and long-term debt 100 155 Shareholders’ equity 295,856 271,623 Total debt and shareholders’ equity 295,956 271,778 in 000s Outstanding common shares 103,801 81,162 Options 2,810 2,830 Warrants 4,451 4,236 Top-up rights 7,
Slide 43: A Canadian Cannabis Leader
A CANADIAN CANNABIS LEADER NASDAQ (OGI) TSX (OGI) 43