Organigram Global Inc. · TSX:OGI
Organigram Global — Q4 2020 Earnings Presentation
21 slides from Organigram Global's earnings presentation, Nov 30, 2020
Slide 1: Organigram Q4 Fiscal 2020 Results
ORGANIGRAM Q4 FISCAL 2020 RESULTS NOVEMBER 30, 2020 NASDAQ (OGI) TSX (OGI)
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of November 29, 2020, except where otherwise stated. The and the sufficiency of the retail networks to supply such demand; ability to enter and participate in information contained in this presentation is provided by Organigram (“OGI” or the “Company”
Slide 3: Organigram at a Glance
ORGANIGRAM AT A GLANCE LEADING LICENSED 3 LEVEL INDOOR CANADIAN INNOVATION PRODUCER GROWING PROVINCES Focused on Leading licensed Indoor facility in Sales to all continuous producer (LP) Moncton, NB with 10 Canadian improvement, of quality products for unique three-level provinces innovation and Med
Slide 4: Recent Highlights
RECENT HIGHLIGHTS • Q4 2020 gross revenue increased 32% to $25.4 million from $19.2 million in Q4 2019 • Q4 2020 net revenue increased 25% to $20.4 million from $16.3 million in Q4 2019 • Launched 40 new stock keeping units (“SKUs”) since July 2020, and expect to launch up to 18 more new SKUs in Q2
Slide 5: Q4 Fiscal 2020 Financial Results
Q4 FISCAL 2020 FINANCIAL RESULTS ADJUSTED ADJUSTED GROSS REVENUE NET REVENUE GROSS MARGIN NET LOSS GROSS MARGIN1 EBITDA1 25,389 20,400 19,235 16,290 30% 9% 6,156 1,491 (11,059) (2,663) (28,756) (22,456) Q4 2019 Q4 2020 (7,163) (38,590) 1. Adjusted gross margin and adjusted EBITDA are non-IFRS financ
Slide 6: Phase 4 and Phase 5 of Moncton Campus Facility
PHASE 4 AND PHASE 5 OF MONCTON CAMPUS FACILITY • Phase 4C substantially completed in Q4 Fiscal 2020 such that it can be occupied, with option to potentially use the space for other opportunities • Target production capacity estimated at 70,000 kg/yr1 • Expect to cultivate below target production cap
Slide 7: Organigram Adult Recreational Brands
ORGANIGRAM ADULT RECREATIONAL BRANDS Pricing Value Value Value Segment Mainstream Whole Flower, Whole Flower, Available / Pre-Milled Flower, Pre-Roll Joints, Chocolate & Whole Flower Pre-Roll Joints, Chocolate Planned Formats Pre-Roll Joint Multipacks Vape Pens Truffles, Oils & Vape Pens Strain Spec
Slide 8: Product Portfolio Revitalization
PRODUCT PORTFOLIO REVITALIZATION Q4 F2020 Q1 F2021 Q2 F2021 40 NEW SKUS LAUNCHED 1.0 1.0 1.0 2.0 1.0 1.0 1.0 | 2.0 2.0 Up to Edison 7g & 15g Buds 28g Trailblazer Edison SHRED Holiday RE:MIX 18 Limelight Trailblazer launch in SNAX New High Pre-shredded Limited Time Dissolvable New SKUs Line extension
Slide 9: OGI Vaporizer Pen Portfolio
REC 2.0 OGI VAPORIZER PEN PORTFOLIO • As planned, began shipping Trailblazer 510-thread Torch vape cartridges (0.5g) 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 vapor
Slide 10: Cannabis-Infused Chocolates
REC 2.0 CANNABIS-INFUSED CHOCOLATES • ~$15M investment in high-speed, high-capacity, fully-automated production line that includes advanced engineering, robotics, high-speed labeling, automated carton packing • Shipped first product in February 2020, Edison Bytes, premium truffles in milk and dark c
Slide 11: Edison Re:Mix
REC 2.0 PROPRIETARY NANOEMULSIFICATION TECHNOLOGY EDISON RE:MIX • Proprietary nanoemulsion technology developed by internal R&D team • Nanoemulsion offers improved absorption when compared to traditional edibles and beverages • Customizable: can easily be added to almost any beverage • Rapid: dissol
Slide 12: 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 BIOSYNTHESIS • Hyasynth’s biosynthesis process uses patent-pending yeast strains and How it works? A proprietary enzymes to produce pure cannab
Slide 13: 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 pioneer in pharmaceutical-grade cannabis for > 12 years • Canndoc’s GMP-approved medi
Slide 14: Liquidity and Capital Resources
LIQUIDITY AND CAPITAL RESOURCES • Ended Q4 Fiscal 2020 with $75 million1 in cash and short-term investments • On the back of strong institutional support, opportunistically raised $69 million in gross proceeds from an underwritten public offering, including the exercise of the over-allotment option
Slide 15: Canadian Adult-Use Rec Market Size and Growth
CANADIAN ADULT-USE REC MARKET SIZE AND GROWTH NUMBER OF CANNABIS RETAIL NUMBER OF ONTARIO RETAIL STORES STORES LICENSES PER MONTH Jul-20 Nov-20 Sept-20 Today RECORD Ontario Ontario $3.1B 102 245 Rest of Rest of Canadian Canadian MARKET provinces provinces Annualized run rate1 861 1034 10 20 40 Doubl
Slide 16: Appendix
APPENDIX
Slide 17: A high-quality cannabis brand
A high-quality cannabis brand. Limelight 3.5g | 7g | 15 g | Prerolls Bytes Milk Chocolate Remix Powder CBD:THC Pax Distillate 0.5 g Feather Distillate 0.3 g 16
Slide 18: A cannabis brand designed in celebration of progress
A cannabis brand designed in celebration of progress and the road less travelled. Freeze 28 g Torch Distillate 0.5 g | 1 g Buds 3.5g | 7g | 15 g | Prerolls Snax Mint Chocolate 17
Slide 19: Designed to break down the barriers to purchasing
Designed to break down the barriers to purchasing in the legal realm: price and convenience. Shred 7g | 15 g 18
Slide 20: Key Q4 and Full Year Fiscal 2020 Financial Metrics
KEY Q4 and FULL YEAR FISCAL 2020 FINANCIAL METRICS SELECT KEY FINANCIAL METRICS (IN $000S) unless otherwise indicated Q4 2020 Q4 2019 Fiscal 2020 Fiscal 2019 Gross revenue 25,389 19,235 103,387 97,547 Excise taxes (4,989) (2,945) (16,592) (17,134) Net revenue 20,400 16,290 86,795 80,413 Cost of sale
Slide 21: Key Q4 and Fiscal 2020 Balance Sheet and Share Metrics
KEY Q4 and FISCAL 2020 BALANCE SHEET and SHARE METRICS SELECT BALANCE SHEET METRICS (IN $000S) 31-Aug-20 31-Aug-19 Cash & short-term investments 74,728 47,935 Biological assets & inventories 71,759 113,796 Other current assets 23,717 34,550 Accounts payable & other current liabilities 29,081 43,864