Village Farms International, Inc. · NASDAQ:VFF
Village Farms International — Investor Presentation (November 2023)
32 slides from Village Farms International's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
Good, for all. NASDAQ: VFF Investor Presentation November 2023
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 Village Farms and Proven Practices for Clean Energy Sustainable Growing Creating clean Controlled Environment Agriculture energy from landfill gas Pioneers in Sustainable, 97% 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$149M C$24M Unmatched Performance TTM revenue TTM adjusted EBITDA in Canadian Cannabis 37% TTM adjusted gross margin C$15M TTM Cash flow TOTAL CDN CANNABIS TOTAL C
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
Dried Dried Flower: Pre- Products in Access to Products in Flower, 40% Rolls, 24% 10 >96% categories that Dried Flower: comprise Infused Pre-Rolls, 5% provincial/ territorial of Canadian market1 >95% Vapes, 15% markets of total market Edibles, 6% Methodical, Prudent Concentrates, 5% sales2 Oils, 3%
Slide 14: Secrets of Our Success
AL CULTIVATION OP ER ION AT PT IO CE N EX • Utilization of existing assets and S operations • Facilities located on a single site 3 • >20 years of experience operating # facilities, including micro climate data • Transition of highly experienced growing BEST SELLING Secrets of and operational team L
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 U.S. 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-TH
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 Beginning with Dutch • EU GMP Certification Cannabis Supply strategy: Experiment in the received for Pure Sunfarms’ Delta 3 facility Netherlands Israel Commenced shipping (exports from Canadian
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 Third Quarter Results, Highlighted by Positive Cash Generation from Each Operating Segment • Consolidated Net Loss Narrowed to ($0.01) Per Share with Positive Consolidated Adjusted EBITDA • Generated Positive Consolidated Cash Flow of $8.8 Million, with Pos
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 Operations
Q3/23 FINANCIAL RESULTS (In millions of dollars except % metrics) Q3 2023 Q3 2022 (ended Sep. 30, 2023) (ended Sep. 30, 2022) $C $US $C $US Net Sales $38.7 $28.8 $39.8 $30.4 Cost of Sales $25.3 $18.9 $29.0 $22.2 Canadian Cannabis Gross Margin $13.4 $9.9 $10.7 $8.2 Gross Margin % 35% 27% Consistently
Slide 24: Village Farms Consolidated Financial Results
Q3 2023 FINANCIAL RESULTS (In millions of U.S. dollars ) Q3 2023 Q3 2022 (ended Sep 30, 2023) (ended Sep 30, 2022) Sales $69.5 $71.1 Produce $35.7 $35.5 Village Farms Canadian Cannabis $28.8 $30.4 US Cannabis $5.0 $5.1 Consolidated Adjusted EBITDA1 $3.2 ($2.2) Financial Results Produce $0.8 ($4.9) C
Slide 25: Commercial Strategy Driving Market Share Growth
CANADIAN MARKET SHARE 9 8.5 8.4 8.3 Commercial Strategy 8 7.6 Driving Market Share 7.5 7.4 7.3 7.5 Growth 7.0 7.1 6.9 7.0 7.1 7 6.8 7.0 6.8 7.1 6.8 6.8 6.6 6.4 6.5 6.3 6.7 6.2 6 5.5 5 4.5 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Based on HiFyre and Weed Crawler data. 2021 2022 2023 25
Slide 26: Commercial Strategy Driving Market Share Growth
ALBERTA MARKET SHARE1 BC MARKET SHARE1 (All Product Categories) (All Product Categories) 9.4 8.9 9.0 8.6 8.4 5.9 8.0 7.9 5.5 7.6 7.2 Commercial Strategy 4.7 5.0 4.6 4.3 5.1 4.9 6.8 6.8 4.4 6.4 4.1 5.0 4.4 4.1 7.3 6.2 4.0 3.7 3.7 4.5 6.6 Driving Market Share 3.6 3.7 3.9 4.0 4.2 5.9 5.4 5.3 5.4 5.7 6.
Slide 27: Village Farms International
Village Farms International Michael A. DeGiglio Stephen Ruffini Ann Gillin Lefever Paul Furfaro Orville Bovenschen Patti Smith President & Chief Executive Officer EVP, Chief Financial Officer EVP, Corporate Affairs SVP, Head of Strategy VP, European Business VP, Corporate Controller Development/Oper
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 Michael Lattimer Rob Baldwin Hamid Shekarchi President VP, Corporate Operations VP, Cultivation & Greenhouse VP, Finance Operations Maria Guest Julia Cameron Scott Gapic Kyle Watson VP, Brand & Commercial VP, Communications & Corporate VP, Technology VP, Commercial A
Slide 30: Balanced Health Botanicals
Balanced Health Botanicals Chase Terwilliger Andrew Papilion Bill Stoufer John P. Harloe, J.D., CEO Co-Founder & Chief Product Chief Operating Officer Ph.D. Officer General Counsel James Shoeboot Ellese Symons Mark Grunder Executive Vice President of Vice President of Marketing Vice President of Tec
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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