Rubicon Organics, Inc. · TSXV:ROMJ
Rubicon Organics — Investor Presentation (March 2024)
33 slides from Rubicon Organics's investor presentation, Mar 27, 2024
Slide 1: Premium Brand Success Fueled by Operational Execution
Premium Brand Success Fueled by Operational Execution TSXV: ROMJ OTCQX: ROMJF Cannabis Company of the Year Investor Presentation, March 27, 2024
Slide 2: Disclaimer
Disclaimer This presentation is not, and under no circumstances is to be construed as, a assumes no obligation to update any forward-looking statement, even if new licensing, sale and storage of cannabis products are affected by extensive laws, prospectus, or advertisement or a public offering of se
Slide 3: Corporate Overview
Corporate Overview We are a Leader in the Canadian Cannabis Financial Highlights: Sector Producing Premium & Super- 7 Consecutive Quarters Premium Branded Cannabis Products Proudly delivering BC premium & organic certified cannabis nationally of Positive AEBITDA 6 Consecutive Quarters of 3 flags
Slide 4: 2023 Our Accomplishments
2023 Our Accomplishments $4.4 million $40.1 million $5.1 million Adjusted EBITDA1 for Net Revenue for 12 mo. Operating cash flow 12 mo. to Q4’23 ended Q4’23 for 12 mo. to Q4’23 2023 Cannabis Expansion Company of the Secured co- manufacturer & Year2 contract grow partners “Most Edibles Recommended” S
Slide 5: 2023 KIND Awards
2023 KIND Awards Industry Recognition is Critical to Success 2023 Cannabis Company of the Year 2023 Peopleʼs Choice Best Weed 2023 Favourite Sample Voted #1 brand sampled by budtenders.
Slide 6: Budtenders rank 2 of our brands in their top Most Recommended
Budtenders rank 2 of our brands in their top 3 “Most Recommended” flower in Canada. 1Brightfield Group Canada Budtender Study 2023
Slide 7: Canada's Favorite Cannabis Topical
Canada’s Favorite Cannabis Topical #1 Topical in Canada 26.9% Market Share Hifyre data for topical products covering the three months ending December 31st, 2023 with 26.9% market share and #1 ranking
Slide 8: Winning with Premium Market Share
Winning with Premium Market Share Industry Recognition is Critical to Success Category Ranking Market Share Premium Flower & Pre-rolls1 #2 6.9% Premium Flower2 #5 4.0% Premium Pre-rolls3 #5 3.6% Premium Edibles4 #3 14.1% Premium Concentrates5 #2 11.0% Topicals6 #1 26.9% 1. Hifyre data for premium fl
Slide 9: Growth Strategy Leveraging Our Brands
Growth Strategy Leveraging Our Brands Entering next phase of growth strategy Organic Leveraging the Power Harnessing ROMJ Strength to Take Growth of Our Premium Brands Advantage of a Distressed Industry • Growth of Premium Market over 7% through • Profitable Brand Growth applying • Opportunistic vie
Slide 10: Launching Vape
Launching Vape Introducing – 1964 Supply Co FSE Resin Vapes Full Spectrum Extracts (FSE) provide more complex, nuanced flavor profile and a smoother consumption experience 1964 is ready to take its share of the fast growing +$800M Canadian vapes market* Planned launch with two best selling cultivars
Slide 11: Vape Market Growth
Vape Market Growth Market Share by Category (in $ Sales) by Quarter Beverages Concentrates Edibles Flower Oils Pre-Rolls Topicals Vapes 2023 vs 2022 2022 vs 2021 Vapes Growth +18% Vapes Growth +29% $210.4M $214.8M $195.3M $172.7M $184.3M $186.8M $164.5M $137.2M $146.1M $153.7M $442.1M $121.7M $391.8
Slide 12: Well-Rounded Brand Portfolio Launched Nationally
Well-Rounded Brand Portfolio Launched Nationally Generating positive gross margin on every SKU Brand Super-Premium Premium Mainstream Super-Premium Positioning (Topicals / Wellness) Product • Dried Flower • Dried Flower • Dried Flower • CBD Relief Stick Offering • Pre-Rolls • Pre-Rolls • Pre-Rolls •
Slide 13: Genetics Leadership
Genetics Leadership 2023 High Society White Rainbow Scotti Biscotti Jokerz 2024 Power Mintz Fruit Loopz Coming soon Coming soon 2023 Super Lemon Haze Gelato #41 Death Bubba Blue Dream 2024 GG#4 Stinky Pinky Coming soon Coming soon
Slide 14: Building Brands from Consistent Execution
Building Brands from Consistent Execution Brand awareness and Aim to become the leading foundation set for expansion premium cannabis company with more profitable product Winner AR Cannabis in Canada formats Cup 2023 “Best Gas” Simply Bare - Well-positioned for growth Passionately delivering BC Orga
Slide 15: Operations Driving Our Brand Success
Operations Driving Our Brand Success Delta Facility 100%-owned 20-acre property in Delta, British Columbia Organic Certified with living soil delivering terpene rich flavors to consumers Premium hang-dry and cure process Production delivering consistent premium quality flower 125,000 sq. ft. hybrid
Slide 16: Leadership Team and Independent Directors
Leadership Team Independent Directors Margaret Brodie, CPA, CA Melanie Ramsey Len Boggio Karen Proud Chief Executive Officer & Director Chief Commercial Officer Director Director 20+ years in finance 20+ years in brand 40+ years as auditor, advisor, 20+ years experience in government Over 8 years in
Slide 17: Q4 2023 Rolling 12-month Financial Results
Q4 2023 Rolling 12-month Financial Results Complete brand portfolio launch and market expansion providing growth and positive gross profit. $41,620 $41,120 $40,120 $39,170 $35,520 Rolling 12-month basis: 13%+ Revenue growth 15%+ $14,500 $16,260 $15,390 $14,090 $12,220 Gross Profit before FV adjustme
Slide 18: Q4 2023 Financial Results Select Financial Metrics
Q4 2023 Financial Results Select Financial Metrics (C$ ‘000’s) Poised for Significant Adjusted EBITDA1 Growth Operating Leverage: Increasing Revenues Over a Fixed Cost Base For the 12 months ended in Q4 2023, the Company 2021 2022 2023 achieved Adjusted EBITDA1 of $4.4M One of only a handful of LP
Slide 19: Growth Story: Premium Sales Driving Market Growth
Growth Story: Premium Sales Driving Market Growth +$300 million Premium market grew faster than total market in Q3 2023 before deceleration with short-term price Potential Growth of Premium compression & fire sales. Our outlook for premium growth to rebound in 2024 as competitors & capacity Segment
Slide 20: Catalysts for the Canadian Cannabis Market
Catalysts for the Canadian Cannabis Market Recommendations of the Possibility of Excise Industry consolidation Cannabis Act Expert Reform Review Panel • Reduce regulatory and administrative • February 2024 Recommendation from the • Reduction in number of Licensed burden House of Commons Standing Com
Slide 21: Canadian Cannabis Industry Today & Our Right to Win
Canadian Cannabis Industry Today & Our Right to Win Canadian Cannabis Canadian Cannabis Rubicon’s Market Companies Opportunity Legal market: Struggling to operationally execute Market is Growing • Over $5.0 billion1 Over-levered with high fixed cost base • 15.9% Market growth to February 20243, Almo
Slide 22: 2024 Company Outlook
2024 Company Outlook Continued Growth in Net Revenue in Full Year 2024 Increase in AEBITDA in 2024* Operating Cashflow Positive 2024 Refer to forward looking guidance and the Company’s materials filed on Sedar+ *excluding the impact of costs for ERP system implementation
Slide 23: Company History & Key Milestones Delivered
Company History & Key Milestones Delivered CONSISTENT EXECUTION 2019 - 2021 2022 2023 2024 Q 2 Q 1 Obtain Sales and Cultivation Launch 1964 brand nationally Launch Infused Cannabis Edibles Appointment of CEO/CFO Licenses Cultivate, Delta Facility J U N E A P R I L Q 2 Initial crops planted and Exten
Slide 24: Market Information
Market Information 56.2M 44.5% As at March 27, 2024 # of Shares % Common shares of common shares outstanding outstanding hold high alignment, Management & Insiders 24,977,771 45.5% management and insiders Tight share structure Public Float 31,213,890 55.5% Consistent insider share purchases Total Ou
Slide 25: Appendix
Appendix Some of our Recent Drops…
Slide 26: Environmental, Social & Governance Leadership
Environmental, Social & Governance Leadership is Core to Executing our Strategy A few highlights from our 2022 ESG Report: 1st Cannabis Producer in the World to issue an ESG Report and 64% Local hiring: continuing of our workforce live within the local community of our Delta greenhouse We believe ES
Slide 27: Delivering Our Brand Promise of Quality = Loyal Customer
Delivering Our Brand Promise of Quality = Loyal Customer Hand trimmed. Hand packaged. Without irradiation. Powered By The Sun Organic Certified Full-spectrum, natural sunlight not only allows plants to Everything is grounded in our living soil - a secret blend express their full aroma but it's also
Slide 28: Nature at its Rawest
Nature at its Rawest Built to delight discerning consumer searching for the highest quality, newest and most flavorful products. Top 3 Most Recommended Brand by Budtenders in Canada1. Proprietary organic Hand trimmed Exotic flavour certified, living soil and hand packed. forward strains providing te
Slide 29: Celebrate the Rebellious Spirit of the 60's
Celebrate the Rebellious Spirit of the 60’s Designed to recruit legacy consumers by offering classic organic cultivars, 1964 is one of Canada’s fastest growing cannabis brand Top 3 Most Recommended Brand by Budtenders in Canada1. Sun Organic Grown Soil #2 in Canada No Artificial Premium Brand Inputs
Slide 30: Connect People with the Healing Power of Plants
Connect People with the Healing Power of Plants Created to inspire holistic wellness by offering the best-performing CBD products that consumer can integrate in their daily routine. #1 Topical Brand in Canada1 26.9% Market Share 1 - Hifyre data for topical products covering the three months ending D
Slide 31: Hard Work Makes Great Cannabis
Hard Work Makes Great Cannabis Targets price conscious daily user offering incredible value pack formats Large format Pre-rolls and offerings milled product
Slide 32: Mission Vision Values
MISSION VISION VALUES Grow the best cannabis Be the global brand leader Excellence on earth, for the earth in organic cannabis Freedom Quality Integrity
Slide 33: Contact Us
CONTACT US Investor Relations ir@rubiconorganics.com www.rubiconorganics.com Rubicon Organics Inc. +1-437-929-1964 505 – 744 W. Hastings Street Vancouver, BC V6C 1A5 TSXV: ROMJ | OTCQX: ROMJF
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