Organigram Global Inc. · TSX:OGI
Organigram Global — Q2 2024 Earnings Presentation
47 slides from Organigram Global's earnings presentation, May 2024
Slide 1: Investor Presentation Q2 Fiscal 2024
INVESTOR PRESENTATION NASDAQ (OGI) TSX (OGI) Q2 Fiscal 2024 03| 31 | 24 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of March 31, 2024, except where otherwise stated. management’s discussion and analysis and other Company documents filed from information under the heading "Cautionary Statement Regarding Certain Non- The information contained in this presentation is
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: Near-Term Strategy
NEAR-TERM STRATEGY 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 with ingesti
Slide 6: Long-Term Strategy
LONG-TERM STRATEGY Organigram has strategically deployed significant capital to increase production efficiency, advance innovation, elevate product quality, and has increased its cash position to fuel international expansion • Production and packaging lines for gummies, milled flower, and pre-rolls
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 on d
Slide 9: Product Development Collaboration
PRODUCT DEVELOPMENT COLLABORATION Organigram and BAT contribute complimentary capabilities and share a commitment to responsible category stewardship. The PDC continues to focus on the development of next generation products, adhering to the highest regulatory and compliance standards Collaboration
Slide 10: Project Jupiter
PROJECT JUPITER Priority Investment The $83 million Jupiter investment pool will target investments in emerging cannabis opportunities 1 Pillars Geographies • USA • Emerging global • All potential investments will be made against Organigram’s strategic vision for the future, focusing on long-term su
Slide 11: Domestic & International Expansion
DOMESTIC & INTERNATIONAL EXPANSION Organigram continues to grow domestic market share in key categories and over-indexes in international sales as a proportion of Canadian exports: Canadian Market Rest of World • #3 market share position in Canada1 • In Fiscal 2023 Organigram shipped an estimated 10
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 • 51,000 sq. ft. edibles
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 Rip-Strip Hash on a Tear Monjour Market Share Up by 7.4% Organigram is the #1 LP in vs. Prior Year Q21 Concentrates1 • Launched in March 2023 • Over 400K units shipped • Monjour held >50% of the pure- • Organigram holds >20% of national approaching $12 million in retail CBD
Slide 16: Dynamic Brand Performance
DYNAMIC BRAND PERFORMANCE SHRED X Heavies – 40%+ THC Infused Pre-Rolls (IPRs) Tube Style Pre-Rolls • IPR’s are the biggest contributor for growth in • Tube style pre roll segment growing at 2X rate of Canada (46% of overall growth came from IPRs vs LY)1 Market & nearly 4x Cone Pre-Rolls • In Q2 Fisc
Slide 17: Strategic Investments
STRATEGIC INVESTMENTS 17
Slide 18: 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 • Inven
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 to Phylos Bioscience Inc. ("Phylos") • Phylos will enable Organigram to accelerate the launch of products containing THCV in the Canadian mar
Slide 20: Investment in US Hemp-Derived Cannabinoids
INVESTMENT US HEMP- DERIVED CANNABINOIDS • In March 2024, Organigram made its first Jupiter investment into US-based Steady State LLC (d/b/a Open Book Extracts) ("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 prior
Slide 21: Investment in Disruptive Technology-Biosynthesis
INVESTMENT IN DISRUPTIVE TECHNOLOGY-BIOSYNTHESIS BIOSYNTHESIS How it works? A proprietary Biosynthesis can be used to produce cannabinoid cannabinoids that are identical to those manufacturing produced by the plant itself. system that can • 49% ownership (if convertible debt converted) of Hyasynth B
Slide 22: International
INTERNATIONAL 22
Slide 23: Significant International Sales Growth
SIGNIFICANT INTERNATIONAL SALES GROWTH $18.9 $15.1 INTERNATIONAL NET REVENUE1 $ millions $3.8 1. International shipments do not attract Canadian Federal excise taxes and therefore gross, and net revenues are equal. 2. F2023 represents 13 months due to a change in Organigram's year end. 2 Cumulative
Slide 24: International Business
INTERNATIONAL BUSINESS • In Fiscal 2023 Organigram shipped $18.9 million in flower to Israel and Australia vs. $15.1 million in Fiscal 2022 • In Q2 Fiscal 2024, Organigram shipped first flower to Sanity Group in Germany and 4C Labs for first UK distribution • Expecting first shipments to new supply
Slide 25: Quarterly Updates & Highlights
QUARTERLY UPDATES & HIGHLIGHTS Q2 F2024 25
Slide 26: 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 #2 position in gummies, the #2 position in infused pre-rolls, and the #3 position in pre-rolls nationally1 • Organigram is a top 3 LP in Canada in ever
Slide 27: Q2 F2024 Highlights
Q2 F2024 HIGHLIGHTS • 21% growth in recreational net revenue • First Jupiter private placement tranche closed adding $41.5 million of cash bringing Organigram's closing cash balance at quarter-end to $83.6 million • Subsequent to quarter end, closed $28.8 million oversubscribed marketed offering, wh
Slide 28: Q2 F2024 Efficiency Milestones
Q2 F2024 EFFICIENCY MILESTONES • Harvest of 19.9 kg of flower in Q2 Fiscal 2024 • Increasing efficiency through internalizing testing, remediation, as well as increasing automation • Identified $10 million in targeted savings for Fiscal 2024 • $2.4 million in savings realized in Q2 Fiscal 2024 and $
Slide 29: Quarterly Revenue
QUARTERLY REVENUE 1. Q4 F23 represents a 4-month period due to a change in Organigram's year end. Net and gross revenue here have been normalized to reflect a 3-month period. $56.3 $57.4 $53.6 $48.4 $36.5 $37.6 $34.5 REVENUE $32.8 $ millions 1 Q3 F23 Q4 F23 Q1 F24 Q2 F24 Net Revenue Gross Revenue 29
Slide 30: Adjusted Gross Margin
ADJUSTED GROSS MARGIN $14 50% 2. Q4 F’23 represents a 4-month period due to a change in Organigram's year end. Adjusted gross margin dollars here have been normalized to reflect a 3-month period. 45% $12 $11.7 $11.2 40% $10 35% 31% 30% $8 31% ADJUSTED 25% GROSS MARGIN1 $6.1 $5.9 $ millions and % of
Slide 31: Adjusted EBITDA
ADJUSTED EBITDA 2. Q4 F2023 represents 4 months due to a change in Organigram's year end. Adjusted EBITDA here has been normalized to reflect a 3-month period. $0.1 ADJUSTED EBITDA1 -$1.0 $ millions -$1.8 1. Adjusted EBITDA is a non-IFRS Financial Measure not defined by and does not have any standar
Slide 32: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY • On March 31, 2023, the Company had cash of $83.6 million (including restricted cash) • In January 2024, the Company closed the first $41.5 million tranche of $124.6 million follow-on investment from BAT • In April 2024, the Company closed a financing for gross pr
Slide 33: Q2 Fiscal 2024 Key Financial Metrics
Q2 FISCAL Q2'24 Q2'23 % Change 2024 KEY Gross revenue 57.4 52.9 9% Excise taxes (19.8) (13.4) 48% FINANCIAL Net revenue 37.6 39.5 (5%) Cost of sales 26.4 29.6 (11%) METRICS Gross margin before fair value changes to biological assets & inventories sold Realized fair value on inventories sold and othe
Slide 34: Appendix
APPENDIX 34
Slide 35: 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 20211 on a post-transaction basis • Total proceeds to Organigram in March 2021 of ~C$221 million (the “Investment Proceeds”) Investment • The pr
Slide 36: 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 C$3.2203/share. • Total gross proceeds to Organigram
Slide 37: 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 37
Slide 38: 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 38
Slide 39: 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 39
Slide 40: CBD and minor cannabinoid gummies
CBD and minor cannabinoid gummies, designed for a personal wellness ritual. Monjour Berry Good Day Monjour Orchard Medley 40
Slide 41: 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 41
Slide 42: Premium hash, inspired by the timeless tradition of hashish
Premium hash, inspired by the timeless tradition of hashish. Tremblant 2g Hash 42
Slide 43: Craft cannabis featuring rare cultivars
Craft cannabis featuring rare cultivars grown with utmost attention and care. Laurentian Saisons 3.5 g 43
Slide 44: Craft cannabis featuring rare cultivars
Craft cannabis featuring rare cultivars grown with utmost attention and care. Laurentian Saisons 3.5 g 44
Slide 45: Q2 Fiscal 2024 Select Balance Sheet Metrics
Q2 FISCAL 2024 SELECT BALANCE SHEET METRICS SELECT BALANCE SHEET METRICS March 31, 2024 September 30, 2023 % Change Cash & short-term investments (excluding restricted cash) 72,606 33,864 114% Biological assets & inventories 83,264 80,953 3% Restricted Cash 11,028 17,893 (38%) In $000s unless Other
Slide 46: Q2 Fiscal 2024 Capital Structure
Q2 FISCAL 2024 CAPITAL STRUCTURE March 31, Sept 30, in $000s 2024 2023 Current and long-term debt 118 155 Shareholders’ equity 271,797 271,623 Total debt and shareholders’ equity 271,915 271,778 in 000s Outstanding common shares 94,469 81,162 Options 2,840 2,830 Warrants - 4,236 Top-up rights 1,943
Slide 47: A Canadian Cannabis Leader
A CANADIAN CANNABIS LEADER NASDAQ (OGI) TSX (OGI) 47