Village Farms International, Inc. · NASDAQ:VFF
Village Farms International — Investor Presentation (May 2024)
32 slides from Village Farms International's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
Good, for all. NASDAQ: VFF Investor Presentation May 2024
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 & Canadian U.S. International Appendix Evolution Cannabinoids Cannabinoids Cannabinoids 01 Overview & Evolution 3
Slide 4: 30+ years in vertically integrated Controlled Environment Agriculture
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 NG TERM Efficient capital LO allocation Multiple IUM T E R opportunities M
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 pr
Slide 7: Pioneers in Sustainable, Vertically Integrated Agriculture
Leading Technology and Proven Practices for Sustainable Growing Village Farms Controlled Environment Agriculture Clean Energy Creating clean energy 97% from landfill gas Pioneers in Sustainable, 86% Vertically Integrated less land use than outdoor less water than outdoor growing (product growing (pr
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 1.7 M ft2 (40 acres) 8.8 M ft2 (203 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$8.5B (CBD) HEALTH & by 20271 WELLNESS MARKET FUTURE FOOD MEDICINAL IN U.S. Other OPPORTUNITIES SELECTED LEGAL US$56.0B Cannabinoids MARKETS by 20253 Global US$62.1B by 2026
Slide 10: Canadian Cannabinoids: Pure Sunfarms + Rose LifeScience
01 02 03 04 05 Overview & Canadian U.S. International Appendix Evolution Cannabinoids Cannabinoids Cannabinoids 02 Canadian Cannabinoids Pure Sunfarms + Rose LifeScience 10
Slide 11: Unmatched Performance in Canadian Cannabis
One of the largest cannabis Lowest-cost producer growers in the world among Canadian greenhouse/indoor LPs 1.6 M ft2 of production area C$171M C$20M Unmatched Performance TTM revenue TTM adjusted EBITDA 32%4 C$19M 4 in Canadian Cannabis TTM adjusted gross margin TTM free cash flow TOTAL CDN CANNABIS
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) Second half of Delta 2 is 1.1 M ft2 1.1 M ft2 2.6 M ft2 currently “swing” capacity In full production: Production In full production of that can be used for >75,000kg annually
Slide 13: Methodical, Prudent Approach to Market Launch
Products in Products in Dried Flower 37% Pre-Rolls 21% 12 categories that comprise Infused Pre-Rolls 10% provincial/ territorial >95% Vapes 17% markets of total market Concentrates 5% Methodical, Prudent sales1 Other 10% Approach to Market First First First First Launch Shipment to Australia Shipmen
Slide 14: Secrets of Our Success
AL CULTIVATION OP PT ION ER AT IO Leading Market Share CE N EX • Utilization of existing assets and S operations • Facilities located on a single site • >20 years of experience operating 2 facilities, including micro-climate data • Transition of highly experienced growing # Secrets of and operationa
Slide 15: U.S. Cannabinoids
01 02 03 04 05 Overview & Canadian U.S. International Appendix Evolution Cannabinoids Cannabinoids 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 Platform for Cannabinoid Market
Save 20 - 25% + FREE Shipping with CBDistillery Subscriptions SHOP NOW Balanced Profitable leader in the One of the largest brands U.S. CBD market in a in the hemp-derived Health consumer products cannabidiol (CBD) market Botanicals category adjacent to the in the United States Wholly owned high-THC
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 & Canadian U.S. International Appendix Evolution Cannabinoids Cannabinoids Cannabinoids 04 International Cannabinoids Targeting Selected Emerging High-Growth Markets 18
Slide 19: Europe & Israel
Europe & Israel Prudent, 1. Export to medicinal 2. In-country opportunities long-term markets from Canada • EU GMP Certification for Netherlands strategy: Canadian Cannabis facility Israel Commenced Jan 2023 85% Ownership of Leli Germany Holland: 1 of only 10 Commenced Mar 2023 companies with a prod
Slide 20: Asia-Pacific Region
12% Interest in Altum International Asia-Pacific Region Platform for large-scale October 2021 Altum launched first high- importation, distribution and THC products into the Australian marketing of cannabidiol medical cannabis market through Altum (supplied by Pure Sunfarms) products, with an overrid
Slide 21: Recent Highlights
Village Farms International Reports Strong Q1/24 Results • Total Sales Grow 21%, Net Loss Per Share Improves to ($0.03), Adjusted EBITDA Increases Six-Fold to $3.6 Million • Canadian Cannabis Retail Net Sales Grow 28% Organically Year-Over-Year, with May 2024 Positive Adjusted EBITDA and Positive Fr
Slide 22: Appendix
01 02 03 04 05 Overview & Canadian U.S. International Appendix Evolution Cannabinoids Cannabinoids Cannabinoids 05 Appendix 22
Slide 23: Canadian Cannabis Consistently Profitable Adjusted EBITDA
Q1/24 FINANCIAL RESULTS (In millions of dollars except % metrics) Q1 2024 Q1 2023 (ended Mar. 31, 2024) (ended Mar. 31, 2023) $C $US $C $US Net Sales $50.5 $37.4 $34.0 $25.1 Cost of Sales $37.7 $27.9 $22.5 $16.7 Gross Profit $12.8 $9.5 $11.5 $8.4 Gross Margin 25% 34% Canadian Cannabis Gross Margin e
Slide 24: Village Farms Consolidated Financial Results
Q1 2024 FINANCIAL RESULTS (In millions of U.S. dollars ) Q1 2024 Q1 2023 (ended Mar 31, 2024) (ended Mar 31, 2023) Sales $78.1 $64.7 Village Farms Produce $36.1 $34.6 Canadian Cannabis $37.5 $25.1 Consolidated US Cannabis $4.5 $5.0 Financial Results Adjusted EBITDA1 $3.6 $0.5 Produce $2.0 ($1.0) Can
Slide 25: Commercial Strategy Driving Market Share Growth
CANADIAN MARKET SHARE 9 8.5 8.3 8.1 Commercial Strategy 8 Driving Market Share 7.5 7.5 Growth 6.9 7.1 7.1 7 7.3 6.7 6.7 6.8 6.4 6.5 6.7 6.2 6.9 6.1 6 5.5 5 4.5 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Based on Hifyre and Weedcrawler data. 2022 2023 2024 25
Slide 26: Commercial Strategy Driving Market Share Growth
ALBERTA MARKET SHARE1 BC MARKET SHARE2 (All Product Categories) (All Product Categories) 8.0 7.2 6.5 6.9 6.9 6.9 7.2 7.3 5.2 Commercial Strategy 6.9 6.6 4.4 6.5 4.1 6 6.1 5.9 5.7 Driving Market Share 5.4 5.3 5.4 4.0 3.9 6.1 5.9 3.6 3.7 3.7 3.7 6.0 Growth JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV D
Slide 27: Village Farms International
Village Farms International Michael A. DeGiglio Stephen Ruffini Ann Gillin Lefever Paul Furfaro Orville Bovenschen John P. Harloe, J.D., President & Chief Executive Officer EVP, Chief Financial Officer Chief Operating Officer President, Global Medical VP, European Business Cannabis Ph.D. Development
Slide 28: Village Farms Fresh (Produce)
Village Farms Fresh (Produce) Bret T. Wiley Michael Minerva Dirk de Jong Arie Van Der Giessen SVP, Sales & Sales Operations SVP, Grower Relations Supply VP, Regional Facilities Manager - VP, Regional Facility Manager - Development Canada USA Derin Gemmel Andrew Gigante VP, HR Admin & Compliance - US
Slide 29: Pure Sunfarms
Pure Sunfarms Orville Bovenschen Rob Baldwin Hamid Shekarchi Maria Guest VP, Cultivation & Greenhouse VP, Finance VP, Brand & Commercial President Operations Julia Cameron Scott Gapic Kyle Watson VP, Communications & Corporate VP, Technology VP, Commercial Affairs 29
Slide 30: Balanced Health Botanicals
Balanced Health Botanicals Bill Stoufer Andrew Papilion James Shoeboot Ellese Symons President Co-Founder & Chief Product Executive Vice President of Vice President of Marketing Officer Technology Mark Grunder Vice President of Operations 30
Slide 31: Rose LifeScience
Rose LifeScience Davide Zaffino Brian D. Stevenson Valentine Vaillant Tamara Lovi President & CEO COO Chief Commercial Officer Chief Business Officer Amyn Lechheb MaDaniel Simard Gabriela Loureiro Eduardo Gioia VP, Business Development VP, Strategy VP, Human Resources VP, Finance 31
Slide 32: Good, for all.
Good, for all.
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