Village Farms International, Inc. · NASDAQ:VFF
Village Farms International — Investor Presentation (December 2021)
25 slides from Village Farms International's investor presentation, December 2021
Slide 1: Investor Presentation December 2021
Good, for all. Investor Presentation December 2021 NASDAQ: VFF TSX: VFF
Slide 2: Forward looking statements
Forward This presentation contains certain "forward looking statements". These statements relate to future events or future performance and reflect the Company's expectations regarding its growth, results of operations, performance, business looking prospects, opportunities or industry performance a
Slide 3: Overview & Evolution
01 02 03 04 05 Overview & Pure U.S. International Appendix Evolution Sunfarms Cannabinoids Cannabinoids (Canada Cannabinoids) 01 Overview & Evolution 3
Slide 4: 30+ years bringing plant-based products to large markets
Bringing …To 30+ years large market, high growth plant-based consumer product in vertically integrated opportunities, with a focus on Controlled Environment cannabinoids in North America & Agriculture (CEA)… around the world Efficient capital allocation Multiple opportunities Brand/market share for
Slide 5: Leaders in Vertically Integrated Controlled Environment Agriculture
EXPERTS in agricultural product safety LEADERS in crop management Leaders in Vertically registrations in North America Integrated Controlled PROVEN Environment track record as a low-cost operator Agriculture (CEA) One of North 3 decades A history of success across Excellence in a wide variety of Ame
Slide 6: A history of successfully pursuing new high margin plant-based market opportunities
A history of successfully pursuing new high margin plant-based market opportunities Our Evolution Since 1989: Developed Leader in crop 1996: Built 2006: RTO of 2012: Built 2014: Since 1990: One of the largest and operated management the largest Hot House World’s Most Established Supplier of fresh &
Slide 7: Pioneers in Sustainable, Vertically Integrated Agriculture
Leading Technology Village Farms and Proven Practices for Clean Energy Sustainable Growing Creating clean Controlled Environment Agriculture energy from landfill gas Pioneers in Sustainable, 97% 86% Methane gas captured at Vertically Integrated less land use than outdoor less water than outdoor the
Slide 8: Today: Unmatched Controlled Environment Agriculture Assets & Operations
Delta, BC Texas ROSE LifeScience (70% Owned) Head Office: Huntingdon, Quebec Today: Unmatched Controlled Environment Agriculture Assets & Operations CANNABINOIDS PRODUCE PRODUCE DISTRIBUTION CENTERS 2.2 M ft2 (50 acres) 8.3 M ft2 (190 acres) Balanced Health Botanicals (100% Owned) Pure Sunfarms: Del
Slide 9: Our Strategy
Food Botanicals High THC MARKET Low THC POTENTIAL FRESH PRODUCE RECREATIONAL Canada Cannabidiol Our Strategy IN LEGAL MARKETS C$6.7B (CBD) HEALTH & by 20261 WELLNESS MARKET FUTURE FOOD MEDICINAL IN U.S. Other OPPORTUNITIES SELECTED LEGAL US$47.6B Cannabinoids MARKETS by 20252 Global US$62.1B by 2026
Slide 10: Pure Sunfarms
01 02 03 04 05 Overview & Pure U.S. International Appendix Evolution Sunfarms Cannabinoids Cannabinoids (Canada Cannabinoids) 02 Pure Sunfarms Canada’s Premier Cannabis Supplier & Leading Dried Flower Brand 10
Slide 11: Unmatched Performance in Canadian Cannabis
One of the largest cannabis Lowest-cost producer growers in the world among Canadian greenhouse/indoor 1.6 M ft2 of production area producers Unmatched Performance in Canadian Cannabis C$110M 39% C$26M TTM revenue TTM gross margin TTM adjusted EBITDA RETAIL BRANDED SALES TOTAL NET SALES ADJUSTED EBI
Slide 12: One of Canada's Largest Footprints to Grow with the Market
PSF – D3 One of Canada’s Largest Footprints PSF – D2 to Grow with the Market VFF – D1 DELTA 3 (D3) DELTA 2 (D2) DELTA 1 (D1) Delta 1 can be rapidly 1.1 M ft2 1.1 M ft2 2.6 M ft2 converted to cannabis In full production: Production Currently producing for Canadian or >75,000kg annually commenced Sept
Slide 13: Methodical, Prudent Approach to Market Launch
Dried Products in the Access to Products in the Flower, 59% 6 >90% 5 Vapes, 16% largest of Canadian largest cannabis provincial market1 product categories Pre-rolled, 12% markets (comprise ~95% of Oil, 4% total market sales2) Methodical, Prudent by sales1 Edibles, 4% Other, 5% Approach to Market Lau
Slide 14: Secrets of Our Success
• Utilization of existing assets and operations • Facilities located on a single site • >20 years of experience operating facilities, including micro climate data • Transition of highly experienced growing Secrets of and operational team • Transfer of experienced, trained labor Our Success # 1 • Dee
Slide 15: U.S. Cannabinoids
01 02 03 04 05 Overview & Pure U.S. International Appendix Evolution Sunfarms Cannabinoids Cannabinoids (Canada Cannabinoids) 03 U.S. Cannabinoids Well Positioned for the Evolution of Regulation in the World’s Largest Cannabis Market 15
Slide 16: Balanced Health Botanicals: US CBD Platform
Save 20 - 25% + FREE Shipping with CBDistillery™ Subscriptions SHOP NOW Balanced One of the largest brands Provides immediate entry in the hemp-derived into the U.S. CBD market Health cannabidiol (CBD) market in a consumer products Botanicals in the United States category adjacent to the Wholly owne
Slide 17: Unmatched U.S. Cultivation Assets
Texas assets represent 5.5 M ft2 Located in the Best Growing ~US$1B Climate for Cannabis in Continental U.S. Currently licensed to grow hemp in Texas in revenue in a cannabis permissible regulatory environment • Lower cost, higher yield • Economies of scale Unmatched U.S. • Consistency of technology
Slide 18: International Cannabinoids
01 02 03 04 05 Overview & Pure U.S. International Appendix Evolution Sunfarms Cannabinoids Cannabinoids (Canada Cannabinoids) 04 International Cannabinoids Targeting Selected Emerging High-Growth Markets 18
Slide 19: Europe: Dutch Cannabis Supply Experiment
Europe Prudent, 1. Focus on recreational 2. Export to medicinal markets long-term markets beginning with from Canada Dutch Cannabis Supply • EU-GMP certification strategy: Experiment in the inspection for Pure Sunfarms Netherlands Delta 3 completed Netherlands Option agreement to acquire 80% of Leli
Slide 20: Asia-Pacific Region: Altum International
12% Interest in Altum International Asia-Pacific Region Platform for large-scale importation, • Commercial operations underway distribution and marketing of CBD, in 2 countries with an overriding focus on regulatory • Hong Kong: Leading CBD brands and products compliance for each specific country •
Slide 21: Recent Highlights
Acquired 70% of Québec-Based ROSE LifeScience, a Leading Nov 2021 Vertically Integrated Branded and Third-Party Supplier to the Québec Cannabis Market Reported Third Quarter 2021 Financial Results: Adjusted EBITDA Up Nov 2021 49% Year-Over-Year /Another Record Quarter for Pure Sunfarms' Sales and Ad
Slide 22: Appendix
01 02 03 04 05 Overview & Pure U.S. International Appendix Evolution Sunfarms Cannabinoids Cannabinoids (Canada Cannabinoids) 05 Appendix 22
Slide 23: Pure Sunfarms Consistently Profitable Cannabis Operations
Q3/21 FINANCIAL RESULTS (In millions of dollars except % metrics) Q3 2021 Q2 2021 Q3 2020 (ended Sep. 30, 2021) (ended Jun. 30, 2021) (ended Sep. 30, 2020) $C $US $C $US $C $US Pure Sunfarms Net Sales $34.5 $27.4 $30.4 $24.7 $22.6 $17.1 Consistently Retail Branded $22.8 $18.1 $22.5 $18.3 $12.0 $9.1
Slide 24: Village Farms Consolidated Financial Results
Q3/21 FINANCIAL RESULTS (In millions of U.S. dollars ) Q3 2021 Q3 2020 (three months ended (three months ended Sep. 30, 2021) Sep. 30, 2020) Village Farms Sales1 $72.4 $43.0 Consolidated Produce $41.2 $42.9 Financial Results Cannabis (Canada & U.S.) $31.2 N/A* Village Farms Clean Energy $0.0 $0.1 Ne
Slide 25: Good, for all.
Good, for all.
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