Organigram Global Inc. · TSX:OGI
Organigram Global — Q3 FY2021 Earnings Presentation
25 slides from Organigram Global's earnings presentation, Jul 13, 2021
Slide 1: Q3 Fiscal 2021 Results
ORGANIGRAM Q3 FISCAL 2021 RESULTS JULY 13, 2021 NASDAQ (OGI) TSX (OGI)
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of July 11, 2021, except where otherwise stated. The information Although the Company believes that the assumptions and factors used in preparing the forward-looking contained in this presentation is provided by Organigram (“OGI” or the “Company”) for
Slide 3: Organigram at a Glance
ORGANIGRAM AT A GLANCE LEADING LICENSED 3 LEVEL INDOOR DEDICATED EDIBLES AND CANADIAN INNOVATION INTERNATIONAL PRODUCER CULTIVATION DERIVATIVE FACILITIES PROVINCES Product Development Currently serving Leading licensed producer TECHNOLOGY National sales and Collaboration with BAT1 Israeli & Australi
Slide 4: Q3 F2021 Revenue Growth from Prior Year Period
Q3 F2021 REVENUE GROWTH FROM PRIOR YEAR PERIOD TOTAL revenue ADULT-USE REC revenue • Grew total gross and net revenue GROSS NET GROSS NET 31% and 13%, 29,105 respectively 25,455 22,241 20,324 19,314 18,021 16,839 • Grew adult-use rec 15,349 gross and net revenue 32% and 10%, respectively 31% 13% 32%
Slide 5: Q3 F2021 Revenue Growth Sequentially from Q2 F2021
Q3 F2021 REVENUE GROWTH SEQUENTIALLY FROM Q2 F2021 TOTAL revenue ADULT-USE REC revenue • Grew total gross and net revenue GROSS NET GROSS NET 51% and 39%, 29,105 respectively 25,455 19,292 20,324 16,839 • Grew adult-use rec 16,458 14,643 gross and net 11,988 revenue 55% and 40%, respectively 51% 39%
Slide 6: Three Level Indoor Cultivation
THREE LEVEL INDOOR CULTIVATION MONCTON FACILITY • Control all critical facets of the growing environment • Micro-climate, strain specific grow rooms • Decision made to complete Phase 4C for more production capacity and to implement design improvements to Moncton Campus expected to result in higher q
Slide 7: Dedicated Edibles and Derivative Facilities (Winnipeg)
DEDICATED EDIBLES AND DERIVATIVE FACILITIES WINNIPEG, MB: • Wholly-owned subsidiary: The Edibles and Infusions Corporation (EIC) • Designed to meet EU-GMP certification standards1 • Purpose built, highly automated, 51,000 square foot facility with state-of-the-art equipment designed to produce nutra
Slide 8: Dedicated Edibles and Derivative Facilities (Moncton)
DEDICATED EDIBLES AND DERIVATIVE FACILITIES MONCTON NB: • Designed under EU-GMP certification standards1 • 56,000 square feet for edibles and derivative products and additional extraction capacity (CO2 and plans for hydrocarbon) • Includes expanded vaporizer pen filling and automated packaging, diss
Slide 9: Recent Significant Developments
RECENT SIGNIFICANT DEVELOPMENTS Product Development Collaboration Acquisition of with BAT and Strategic Investment Cannabis Edibles Company Announced March 11, 2021, Organigram forms Product Announced April 6, 2021, OGI acquired Development Collaboration with BAT – includes strategic The Edibles and
Slide 10: OGI Adult-Use Recreational Brands
OGI ADULT-USE RECREATIONAL BRANDS SHRED MOST-SEARCHED brands on Ontario EDISON #1 MOST SEARCHED among top 12 MOST for the last 8 months Cannabis Store website SEARCHED Nov/Dec‘20 & Jan-June Nov ‘20 & ‘21 Jan/Feb ‘21 Pricing Value Value Value Mainstream Mainstream Segment Whole Flower, Whole Flower,
Slide 11: Product Portfolio Revitalization
PRODUCT PORTFOLIO REVITALIZATION Q4 F2020 Q1 F2021 Q2 F2021 Q3 F2021 Q4 F2021 FLOWER FLOWER FLOWER Limited Time DISSOLVABLE 1.0 | 2.0 SHRED BIG BAG O’BUDS Edison + Feather Buds 28g Edison new high SHRED Offers RE:Mix Edison 3.5g Jar of J’s 28g Flower disposable and launch in Ontario THC strains Pre-
Slide 12: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY • Balance sheet is substantially debt-free • On April 1, 2021, repaid all outstanding balances ($58.5 million) under the credit agreement with BMO and a syndicate of lenders • Annual interest savings of $2.7 million1 • The Company had cash and short-term investment
Slide 13: Q4 Fiscal 2021 Outlook
Q4 FISCAL 2021 OUTLOOK1 • Net revenue expected to be higher in Q4 F2021 vs Q3 F2021 on: • Stronger forecasted market growth as stores reopen to foot traffic and the retail network expands • Better demand fulfillment with increased staffing • Revenues to date and purchase orders received from custome
Slide 14: Potential Upside for Gross Margins
POTENTIAL UPSIDE FOR GROSS MARGINS Potential to further improve adjusted gross margins over time: • Expect to gain economies of scale and efficiencies as cultivation scales up • Planned changes to growing and harvesting methodologies as well as Moncton Campus design improvements expected to result i
Slide 15: Product Development Collaboration
PRODUCT DEVELOPMENT COLLABORATION CENTER OF EXCELLENCE (“CoE”) • Successfully launched at Organigram’s Moncton facility • Focused on developing the next generation of cannabis products with an initial focus on CBD • Initial positions have been created, including innovation-focused roles such as scie
Slide 16: Supply Agreement with Canndoc in Israel
SUPPLY AGREEMENT WITH CANNDOC IN ISRAEL • 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 medic
Slide 17: Canadian Retail Network Growing
CANADIAN RETAIL NETWORK GROWING CANNABIS RETAIL STORES NUMBER OF ONTARIO RETAIL STORE IN 10 PROVINCES AUTHORIZATIONS PER MONTH 2,229 Increase of Sept- Dec- Today** 131% 2020 2020 963 ONTARIO Increase of 20 40 80 120 102 ONTARIO 872 755% Quadrupled Jul-2020 July-2021 ONTARIO GREW 755% | Canada’s 10 p
Slide 18: Canadian Adult-Use Rec Retail Market Growth
CANADIAN ADULT-USE REC RETAIL MARKET GROWTH ANNUALIZED RUN RATE • Canadian adult-use recreational retail sales as $3.7B estimated by Hifyre in June 2021 were $309M or Ontario $3.7B annualized for strong year-over-year 556 growth of 54% $2.4B • The Brightfield Group estimates closer to $8B in Canadia
Slide 19: Appendix
APPENDIX
Slide 20: Q3 Fiscal 2021 Key Financial Metrics
Q3 FISCAL 2021 KEY FINANCIAL METRICS Select Key Financial Metrics (in $000s unless otherwise indicated) Q3 2021 Q3 2020 % Change Gross revenue 29,105 22,241 31% Excise taxes (8,781) (4,220) 108% Net revenue 20,324 18,021 13% Cost of sales 23,381 44,375 -47% Gross margin before fair value changes to
Slide 21: Q3 Fiscal 2021 Key Balance Sheet and Share Metrics
Q3 FISCAL 2021 KEY BALANCE SHEET and SHARE METRICS Select Balance Sheet Metrics (in $000s) 2021-05-31 2020-08-31 % Change Cash & short-term investments 196,446 74,728 163% Biological assets & inventories 46,638 71,759 -35% Other current assets 22,060 23,717 -7% Accounts payable & accrued liabilities
Slide 22: 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 21
Slide 23: 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 22
Slide 24: 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 Shred Jar of J’s | 14 x 0.5 g 23
Slide 25: Created for savvy cannabis lovers
Created for savvy cannabis Quality flower, lovers looking to explore high THC and the dank and dreamy world classic buds in of Indicas. one big bag. Indi | 3.5g Big Bag O’ Buds | 28g 24