Organigram Global Inc. · TSX:OGI
Organigram Global — Investor Presentation (November 2020)
24 slides from Organigram Global's investor presentation, Nov 6, 2020
Slide 1: OGI Investor Presentation
OGI INVESTOR PRESENTATION NASDAQ (OGI) TSX (OGI) OGI INVESTORS’ PRESENTATION |
Slide 2: Cautionary Statement
Cautionary Statement This document is current as of November 6, 2020, except where otherwise stated. The information participate in international market opportunities; general economic, financial market, regulatory and contained in this presentation is provided by Organigram (“OGI” or the “Company”)
Slide 3: Organigram at a Glance
• Leading licensed producer of premium quality product for Medical & Adult Recreational Markets • Indoor facility in Moncton, NB with unique three- Organigram at a level cultivation technology Glance • Sales to all 10 Canadian provinces • Focused on continuous improvement, innovation and automation
Slide 4: Recent Highlights
Recent Highlights • Launched our first value offering of dried flower in a large size format of 28g into the fast- growing value segment of the adult-use recreational market • Revitalizing overall product portfolio with 28 SKUs launching from July to September 2020 • Reduced the Company’s workforce
Slide 5: Fiscal 2019 Financial Results
Fiscal 2019 Financial Results NET REVENUE GROSS MARGIN POSITIVE ADJUSTED NET INCOME (LOSS)4 before FV CHANGES to BIO ASSETS & INVENTORIES EBITDA2 • Gross margin before fair • 2019 positive adjusted • 2019 net loss of $9.5M or • 2019 net revenue grew value changes to bio EBITDA margin2 of 25% as $0.0
Slide 6: Three Level Indoor Cultivation Technology
Three Level Indoor Cultivation Technology • 3 level growing optimizes footprint • Control critical facets of environment with state-of-the-art technology and innovation • Data driven decisions 6
Slide 7: Phase 4 Expansion of Moncton Campus
Phase 4 Expansion Of Moncton Campus • Phase 4 divided up into 3 stages – 4A, 4B and 4C; Phases 4A and 4B completed • Adjusting production methods to achieve higher THC levels which has reduced the yield per plant by ~20% - revised target production capacity is now estimated at 70,000 kg/yr1 (from 89
Slide 8: Phase 5 Refurbishment of Moncton Campus for Edibles and Derivative Products
Phase 5 Refurbishment of Moncton Campus For Edibles and Derivative Product Facility and More Extraction • 56,000 square feet within existing Moncton Campus facility being refurbished for: • An edibles and derivative production facility; and • Additional extraction capacity (CO2 and hydrocarbon) • Es
Slide 9: Adult Recreational Brands
The picture can't be displayed. The picture can't be displayed. The picture can't be displayed. The picture can't be displayed. The picture can't be displayed. The picture can't be displayed. Adult Recreational Brands Pricing Deep Value Value Value Segment Mainstream Mainstream Premium Whole Flower,
Slide 10: REC 1.0 - New Product Launches and Line Extensions
REC 1.0 - New Product Launches and Line Extensions PRODUCTS LAUNCH TIMING VALUE in large Launched early July format 7g & 15g Trailblazer line extensions 2020 segment VALUE in large Buds 28g launch in Ontario Launched mid July format (already in Alberta and Atlantic Canada) 2020 segment NEW SKUs for
Slide 11: REC 2.0 OGI Vaporizer Pen Portfolio
REC 2.0 OGI Vaporizer Pen Portfolio • As planned, began shipping Trailblazer Torch vape cartridges in December 2019 • Started shipping Edison + Feather ready-to-go distillate pens in February 2020 • Selected as one of the Canadian partners for PAX ERA, the premium closed loop vaporizer system create
Slide 12: REC 2.0 Cannabis-infused Chocolates
REC 2.0 Cannabis-infused Chocolates • ~$15M investment in high- speed, high-capacity, fully- automated production line that • Launched Trailblazer Snax, our includes advanced engineering, value segment cannabis-infused robotics, high-speed labeling, chocolate bar in late July 2020; automated carton
Slide 13: REC 2.0 Proprietary Nanoemulsification Technology
REC 2.0 Proprietary Nanoemulsification Technology Dissolvable Powder Product • Proprietary nanoemulsion technology developed by internal R&D team • Nanoemulsion offers improved absorption when compared to traditional edibles like a brownie or ingestible oil • Customizable: can easily be added to alm
Slide 14: Award-winning Products and Brands
Award-winning Products and Brands Won Top Product Award in the High THC Bottled Oil Category for our medical product, Rossignol Runner-up for medical High THC Bottled Oil Banook and recognized in 7 other categories 14
Slide 15: Leafly Readers Choice Award Winners
Leafly Readers Choice Award Winners Products from our Edison Cannabis Co. Brand have been chosen as the best in Canada! TOP THC-DOMINANT FLOWER TOP PRE-ROLL TOP CBD OIL TOP THC OIL LA STRADA EL DORADO PRE-ROLL EDISON CBD EDISON SATIVA Mentions: Top Licensed Producer, #2 Top Balanced Oil, #3 Top Pre-
Slide 16: Investment in Disruptive Technology-Biosynthesis
Investment in Disruptive Technology-Biosynthesis • Investment in Hyasynth, a biotech company and leader in the field of cannabinoid science and biosynthesis • Hyasynth’s biosynthesis process uses patent-pending yeast strains and BIOSYNTHESIS How it works? enzymes to produce pure cannabinoids (not sy
Slide 17: OGI's Largest International Deal to Date
OGI’s Largest International Deal to Date • On June 9, 2020, entered into a multi-year agreement for supply of dried flower to one of Israel’s largest and most established medical cannabis producers, Canndoc Ltd., a sub of InterCure Ltd. (TASE: INCR/INCR.TA) and a pioneer in pharmaceutical-grade cann
Slide 18: Liquidity and Capital
Liquidity and Capital • Generated $8.5M in positive cash flow from operations in Q3 Fiscal 2020 • Cash and short-term investments of $44.8M as at end of Q3 Fiscal 2020 • Only modest remaining expansion capex of ~$4M as at the end of Q3 Fiscal 2020 to complete plans for Phases 4 and 5 of the Moncton
Slide 19: Executive Team
Executive Team Greg Derrick West Paolo DeLuca Helen Martin Tim Emberg Matt Rogers Christy Amy Schwalm Engel Zhou VP, Investor Chief Executive Officer Chief Financial Officer SVP, Strategic & SVP, Sales SVP, Operations VP, Legal & Chief Strategy Officer Relations • Served as the Chair of Legal Affair
Slide 20: Appendix
APPENDIX OGI INVESTORS’ PRESENTATION |
Slide 21: Select Key Q3 Fiscal 2020 Financial Metrics
Select Key Q3 Fiscal 2020 Financial Metrics ($ IN 000S) UNLESS OTHERWISE INDICATED Q3 2020 Q3 2019 % CHANGE Gross revenue 22,241 30,361 -27% Excise taxes (4,220) -25% (5,611) Net revenue 18,021 24,750 -27% Cost of sales 44,375 12,473 256% Gross margin before fair value changes to biological assets &
Slide 22: Select Key Q3 Fiscal 2020 Balance Sheet Metrics
Select Key Q3 Fiscal 2020 Balance Sheet Metrics ($ IN 000S UNLESS OTHERWISE INDICATED) 31-MAY-20 31-AUG-19 % CHANGE Cash & Short-Term Investments 44,777 47,935 -7% Biological Assets & Inventories 100,634 113,796 -12% Other Current Assets 17,226 34,550 -50% A/P and Other Current Liabilities 31,015 43
Slide 23: Select Key Fiscal 2019 Financial Metrics
Select Key Fiscal 2019 Financial Metrics (in 000s) unless indicated FISCAL 2019 FISCAL 2018 % CHANGE Gross revenue 97,547 12,429 685% Excise taxes (17,134) - n/m Net revenue 80,413 12,429 547% Cost of sales (incl. indirect production) 42,521 6,814 524% Gross margin (GM) before FV changes 37,892 5,61
Slide 24: Select Key Fiscal 2019 Balance Sheet Metrics
Select Key Fiscal 2019 Balance Sheet Metrics (in 000s) FISCAL 2019 FISCAL 2018 % CHANGE Cash & Short-Term Investments 47,935 130,064 (63%) Biological Assets & Inventories 113,796 64,827 76% Other Current Assets 34,550 8,323 315% Accounts Payable and Other Current Liabilities 43,864 11,250 290% Worki
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