Rubicon Organics, Inc. · TSXV:ROMJ
Rubicon Organics — Investor Presentation (May 2024)
34 slides from Rubicon Organics's investor presentation, May 16, 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, May, 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 Sector Producing Highlights: Premium & Super-Premium Branded Cannabis Products Proudly delivering BC premium & organic certified cannabis nationally #1 Premium LP 1 3 flagship brands, prominent brand recognition in their segments in Can
Slide 4: Q1 2024 Highlights
Q1 2024 Highlights #1 Premium LP In Canada 1 2.0% 6.9% $8.9 million Market Share2 Premium Market Net Revenue Share1 Q1’ 24 22.8% $(0.4) million Premium Edibles Adjusted EBITDA5 Market Share4 Q1’ 24 30.6% $4.0 million Topical market share3 Operating cash flow for 12 mth to Q1’ 24 1. Hifyre data for p
Slide 5: 2023 Our Accomplishments
2023 Our Accomplishments $4.4 million $40.1 million $5.1 million (+130%) (+13%) (+160%) 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
Slide 6: 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 7: 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 8: Canada's Favorite Cannabis Topical
Canada’s Favorite Cannabis Topical #1 Topical in Canada 30.6% Market Share Hifyre data for topical products covering the three months ending March 31st, 2024 with 30.6% market share and #1 ranking
Slide 9: Winning with #1 Premium Market Share
Winning with #1 Premium Market Share1 Industry Recognition is Critical to Success 2024 Category Ranking Market Share Premium Flower & Pre-rolls2 #1 7.1% Premium Flower3 #3 7.6% Premium Pre-rolls4 #4 6.1% Premium Edibles5 #1 22.3% Premium Concentrates6 #3 6.7% Topicals7 #3 9.0% 1. Hifyre data for pre
Slide 10: 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 11: 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* Launching with two best selling cultivars: Com
Slide 12: 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 13: 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 14: Genetics Leadership
Genetics Leadership 2023 2024 2023 2024 High Society Power Mintz Super Lemon Haze GG#4 White Rainbow Fruit Loopz Gelato #41 Stinky Pinky Scotti Biscotti Kraken Death Bubba LA Kush Cake Jokerz More to come … Blue Dream More to come … Blue Dream
Slide 15: 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 16: 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 17: 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 18: Q1 2024 Rolling 12-month Financial Results
Q1 2024 Rolling 12-month Financial Results Complete brand portfolio launch and market expansion providing growth and positive gross profit. $41.6 M $41.1 M $40.1 M $40.2 M $39.2 M Rolling 12-month basis: +3% Revenue growth (8)% $14.5 M $16.3 M $15.4 M $14.1 M $13.3 M Gross Profit before FV adjustmen
Slide 19: 2023 Financial Results Select Financial Metrics
2023 Financial Results Select Financial Metrics (C$ ‘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 LPs t
Slide 20: 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 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: 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 23: 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 one-time costs of ERP system implementation accounted for withi
Slide 24: 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 25: Market Information
Market Information 56.2M 43% As at May 15, 2024 # of Shares % Common shares of common shares outstanding outstanding hold high alignment, Management & Insiders 24,193,364 43.0% management and insiders Tight share structure Public Float 32,014,963 57.0% Consistent insider share purchases Total Outsta
Slide 26: Appendix
Appendix Some of our Recent Drops…
Slide 27: 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 28: Delivering Our Brand Promise of Quality
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 29: 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 30: 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 #1 in Canada No Artificial Premium LP Inputs 2
Slide 31: 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 30.6% Market Share 1 - Hifyre data for topical products covering the three months ending M
Slide 32: 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 33: 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 34: 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