Village Farms International, Inc. · NASDAQ:VFF
Village Farms International — Investor Presentation (October 2024)
29 slides from Village Farms International's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
Good, for all. NASDAQ: VFF Investor Presentation October 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
01 02 03 04 05 Overview Canadian U.S. International Appendix Cannabis Cannabis Cannabis 01 Overview 3
Slide 4: 30+ years bringing CEA to cannabis
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 I UM T E R opportunities M
Slide 5: Investment Highlights
Investment Highlights Relentless Focus on Unmatched Expertise and Assets Proven Cannabis Growth Strategy • Longest continually operating CEA/hydroponic operator • Scale cultivation of high-quality, multi-price-point in North America products, at lowest cost • 750+ years of combined master grower exp
Slide 6: Leaders in Vertically Integrated Controlled Environment Agriculture
Leaders in Vertically Integrated Controlled Environment Agriculture (CEA) One of North 3 decades A history of success across Excellence in a wide variety of America’s largest developing and cultivation is the and longest operating mega-scale agricultural products greenhouses foundation of operating
Slide 7: 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 8: Today: Unmatched Cultivation & Processing Footprint
Delta, BC Texas ROSE LifeScience (80% Owned) Head Office: Huntingdon, Quebec Today: Unmatched Cultivation & Processing Footprint CANNABIS PRODUCE 1.7 M ft2 (40 acres) 8.8 M ft2 (203 acres) Pure Sunfarms: Delta, BC Village Farms Fresh Balanced Health Botanicals (100% Owned) 2 Facilities (Delta 2 & 3)
Slide 9: Canadian Cannabis
01 02 03 04 05 Overview Canadian U.S. International Appendix Cannabis Cannabis Cannabis Canadian Cannabis 02 Unmatched Performance in the World’s First Legal Recreational Cannabis Market 9
Slide 10: Unmatched Performance in Canadian Cannabis
One of the largest cannabis Lowest-cost producer growers in the world among Canadian greenhouse/indoor LPs 2.2 M ft2 of production area C$264M C$189M Unmatched Performance TTM Gross Sales TTM Net Sales in Canadian Cannabis 29%4 C$20M C$22M 4 TTM Adj. GM TTM adjusted EBITDA TTM Oper. Cash Flow TOTAL
Slide 11: 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) Combined Delta facilities 1.1 M ft2 1.1 M ft2 2.6 M ft2 capable of supplying >1/3 Full cannabis Cannabis production In full production of production: >75,000kg in first half o
Slide 12: Measured Approach to Market Leadership
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% Measured Approach sales1 Other 10% to Market Leadership First First First First Shipment Shipment Shipment Shipment
Slide 13: 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 14: U.S. Cannabis
01 02 03 04 05 Overview Canadian U.S. International Appendix Cannabis Cannabis Cannabis U.S. Cannabis 03 Well Positioned for the Evolution of Regulation in the World’s Largest Cannabis Market 14
Slide 15: 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 16: U.S. Opportunity: Texas 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 U.S. • Consistency of technology Opportuni
Slide 17: International Cannabis
01 02 03 04 05 Overview Canadian U.S. International Appendix Cannabis Cannabis Cannabis 04 International Cannabis Targeting Selected Emerging High-Growth Markets 17
Slide 18: International Cannabis Growth Strategy
International Cannabis Growth Strategy 1. Medicinal: 2. Recreational: Export from Canada In-country cultivation • EU GMP Certification for Canadian Cannabis facility Netherlands Current markets: Ownership of Leli Holland: 1 of only 10 companies with a Australia production license under the Dutch Can
Slide 19: Netherlands Opportunity
Leli Holland provides exposure to one of the most attractive regulatory setups of any limited license market across the global cannabis industry… Netherlands Opportunity • Village Farms owns 1 of 10 licenses to grow and distribute recreational cannabis in the Dutch recreational market • Government-s
Slide 20: A Fundamentally Attractive Jurisdiction
A Fundamentally Dutch Regulatory Framework Canadian Regulatory Framework Attractive Jurisdiction • • One of only ten License Holders NO Excise tax for duration of the program • • Unlimited +/- 900 license holders Leading to significant overproduction • NO liquor boards; LP’s will be selling directly
Slide 21: Drachten Facility
Architectural Rending Architectural Rendering & Site - Drachten Plan Facility Drachten Facility • Indoor Facility (Retrofit of Existing Building) • Construction Completed On Time and Under Budget Design Layout - Drachten Facility Source: Leli Holland • Began Cultivation in October 2024 • 1 Megawatt
Slide 22: Appendix
01 02 03 04 05 Overview Canadian U.S. International Appendix Cannabis Cannabis Cannabis 05 Appendix 22
Slide 23: Recent Highlights
May 2024 Village Farms International Boosts Ownership in Fast-Growing Rose LifeScience Village Farms International Congratulates Netherlands on Cannabis Program June 2024 Milestone June 2024 ROSE LifeScience announces quality upgrade to top-selling Pure Laine Big Pleasures Recent Highlights June 202
Slide 24: Canadian Cannabis Consistently Profitable Adjusted EBITDA
Q2/24 FINANCIAL RESULTS (In millions of dollars except % metrics) Q2 2024 Q2 2023 (ended Jun 30, 2024) (ended Jun 30, 2023) $C $US $C $US Net Sales $55.8 $40.7 $37.7 $28.1 Cost of Sales $41.1 $30.0 $23.3 $17.3 Gross Profit $14.7 $10.7 $14.4 $10.8 Gross Margin 26% 38% Canadian Cannabis Gross Margin e
Slide 25: Village Farms Consolidated Financial Results
Q2 2024 FINANCIAL RESULTS (In millions of U.S. dollars ) Q2 2024 Q2 2023 H1 2024 H1 2023 (ended Jun 30, (ended Jun 30, (ended Jun 30, (ended Jun 30, 2024) 2023) 2024) 2023) Sales $92.2 $77.2 $170.3 $141.9 Village Farms Produce $47.0 $43.8 $83.1 $78.4 Canadian Cannabis $40.8 $28.1 $78.2 $53.2 Consoli
Slide 26: Commercial Strategy Driving Market Share Growth
CANADIAN MARKET SHARE 9 8.6 8.6 8.4 8.5 8.2 8.2 Commercial Strategy 8 7.7 Driving Market Share 7.5 7.6 Growth 7.2 7.2 7 7.1 6.8 6.7 6.9 6.9 6.5 6.5 6.3 6.2 6.2 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 26
Slide 27: Commercial Strategy Driving Market Share Growth
ALBERTA MARKET SHARE1 BC MARKET SHARE2 (All Product Categories) (All Product Categories) 8.0 7.2 7.1 7.0 6.5 7.0 6.9 6.9 6.9 7.2 7.3 5.2 Commercial Strategy 6.8 6.9 6.6 6.7 4.4 6.5 6.3 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 J
Slide 28: 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 29: Good, for all.
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
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