Organigram Global Inc. · TSX:OGI
Organigram Global — Q4 2022 Earnings Presentation
41 slides from Organigram Global's earnings presentation, Nov 29, 2022
Slide 1: Investor Presentation Q4 Fiscal 2022
INVESTOR PRESENTATION NASDAQ (OGI) TSX (OGI) Q4 Fiscal 2022 11 | 29 | 22 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of November 28, 2022, except where materially from current expectations or future results, performance or the financial and operational performance of the Company. These otherwise stated. The information contained in this presentation is achievements
Slide 3: Our Strategy
OUR STRATEGY INNOVATION CONSUMER FOCUS EFFICIENCY EXPANSION Leverage our brands, product portfolio and culture of innovation to: Increase Drive Deliver long-term Reach market share profitability shareholder value new markets 3
Slide 4: Organigram Key Strengths
ORGANIGRAM KEY STRENGTHS LEADING THREE LEVEL DEDICATED NATIONAL INNOVATION INTERNATIONAL PREMIUM BRANDS LICENSED INDOOR EDIBLES AND DISTRIBUTION FOCUS REACH AND HIGH MARGIN PRODUCER CULTIVATION DERIVATIVES PRODUCTS FACILITIES National sales and Product Development Currently serving Leading licensed
Slide 5: Quarterly Update
QUARTERLY UPDATE Q4/YE F2022 5
Slide 6: Continuing a Trend of Growth: Market Share
CONTINUING A TREND OF GROWTH 8.2% 8.0% 7.8% 7.5% 7.0% Canadian recreational 5.4% market share by $ sales1 4.1% 1.Hifyre, as of August 31, 2022, pulled October 18, 2022 Q2 F21 Q3 F21 Q4 F21 Q1 F22 Q2 F22 Q3 F22 Q4 F22 6
Slide 7: Continuing a Trend of Growth: Revenue
CONTINUING A TREND OF GROWTH $65.7 $55.2 REVENUE $45.5 $44.3 $43.9 $ millions $38.1 $36.2 CAGR $31.8 $30.4 Net revenue: 16.3% $24.9 Gross revenue: 16.1% Q4 F21 Q1 F22 Q2 F22 Q3 F22 Q4 F22 Net Revenue Gross Revenue 7
Slide 8: Continuing a Trend of Growth: Adjusted Gross Margin
CONTINUING A TREND OF GROWTH $10.4 $9.3 $8.3 ADJUSTED GROSS MARGIN1 $5.5 $ millions and % of Net Revenue $3.0 12% 18% 26% 24% 23% 1. Adjusted Gross Margin is a non-IFRS Financial Measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q4 2022 MD&A
Slide 9: Continuing a Trend of Growth: Adjusted EBITDA
CONTINUING A TREND OF GROWTH $3.2 $1.6 $0.6 ADJUSTED EBITDA1 $ millions -$1.9 1. Adjusted Gross Margin is a non-IFRS Financial -$4.8 Measure not defined by and does not have any standardized meaning under IFRS; please refer to the Company’s Q4 2022 MD&A for definitions and reconciliation to IFRS. Q4
Slide 10: Q4/YE 2022 Highlights
Q4/YE 2022 HIGHLIGHTS • Record-high quarterly and annual net revenue for the Company • $45.5 million (↑84%) in Q4 and $146 million (↑83%) for the year • Third consecutive quarter of positive Adjusted EBITDA1 • Maintained #3 position among Canadian LPs, holding 8.2% market share2 • Hold #2 position a
Slide 11: Strong Balance Sheet and Liquidity
STRONG BALANCE SHEET AND LIQUIDITY • Capital position is healthy, and there is sufficient liquidity available for the near to medium term • On August 31, 2022, the Company had cash and short-term investments (excluding restricted funds) of $98.6 million • Negligible debt (less than $0.3 million) 11
Slide 12: Q4/YE Fiscal 2022 Key Financial Metrics
Q4/YE FISCAL Q4 AND YEAR END FOR 12 MONTHS ENDED AUGUST 31, 2022 Q4 ‘22 Q4 ‘21 % Change YE ‘22 YE ‘21 % Change 2022 KEY Gross revenue 65.7 36.2 81% 209.2 109.9 90% Excise taxes (20.2) (11.3) 78% (63.3) (30.7) 106% FINANCIAL Net revenue 45.5 24.9 83% 145.8 79.2 84% Cost of sales 36.7 25.9 42% 119.0 1
Slide 13: Fiscal 2022 Outlook
FISCAL 2022 OUTLOOK • Expecting solid Fiscal ‘23 net revenue – anticipated to be significantly higher than Fiscal ‘22 due to: • Strong market share momentum – as of August 2022, the Company has reached 8.2% share1, solidifying its position as the #3 LP • Continued expansion of product portfolio in m
Slide 14: Potential Upside for Gross Margins
POTENTIAL UPSIDE FOR GROSS MARGINS • Anticipate improved economies of scale and efficiencies as cultivation and production volumes continue to increase • Increase of annual capacity at Moncton facility to 85,000 kg • Increase of Lac-Supérieur annual hash production to two million units • Continued i
Slide 15: Brand Portfolio
BRAND PORTFOLIO 15
Slide 16: Well-Rounded Brand Portfolio
WELL-ROUNDED BRAND PORTFOLIO NEW Pricing Value Value Value Value Premium Craft Premium Segment Pre-Milled Flower, Whole Flower, Available / Hashish Pre-Roll Joints, Whole Flower CBD & Minor Cannabinoid Pre-Roll Joints, Infused Whole Flower Planned Whole Flower Hash Infused Pre-rolls Infused Gummies,
Slide 17: Operations
7 wa = J | = [- = pee | _- i —]
Slide 18: State-of-Art, Three-Tier Cultivation Centre
STATE-OF-ART, THREE-TIER CULTIVATION CENTRE • Located in Moncton, NB • Strain-specific grow rooms • Micro-climates provide the ability to control all critical growing environment factors • Phase 4C expansion complete and generating higher quality flower and reduced production costs • Expected yield
Slide 19: Premium Quality Cannabis and Hash Production
PREMIUM QUALITY CANNABIS AND HASH PRODUCTION • Located in Lac-Supérieur, Québec (near Mont-Tremblant) • Producer of hang dried, trimmed by hand, artisanal craft cannabis, and premium Afghan-style hash • Anticipate greenhouse capacity expanding from 600kg to 2,400kg of craft flower • Expansion underw
Slide 20: Dedicated Edibles and Derivatives
DEDICATED EDIBLES AND DERIVATIVES • Winnipeg-based wholly-owned subsidiary • Designed to meet EU-GMP certification standards1 FACILITIES • Purpose-built, highly automated, 51,000-square-foot facility with state-of-the-art equipment • Designed to produce nutraceutical-grade cannabis edibles, includin
Slide 21: Investments and Collaborations
INVESTMENTS AND COLLABORATIONS 21
Slide 22: Investment in Disruptive Technology-Biosynthesis
INVESTMENT IN DISRUPTIVE TECHNOLOGY-BIOSYNTHESIS BIOSYNTHESIS How it works? A proprietary Biosynthesis can be used to produce cannabinoid cannabinoids that are identical to those manufacturing produced by the plant itself. system that can product rare cannabinoids. Genome engineering of yeast: A • 4
Slide 23: Product Development Collaboration & Strategic Investment
PRODUCT DEVELOPMENT COLLABORATION & STRATEGIC INVESTMENT TRANSACTION HIGHLIGHTS STRATEGIC RATIONALE • ~C$227M strategic investment from subsidiary of BAT for 19.4% equity interest1 • Accelerates and strengthens Organigram’s R&D and product development activities, in Organigram including granting acc
Slide 24: Alignment of Capabilities & Resources
ALIGNMENT OF CAPABILITIES & RESOURCES LEADING CONSUMER GOODS LEADING LICENSED PRODUCER BUSINESS OF HIGH-QUALITY CANNABIS PRODUCTS SOPHISTICATED MANAGEMENT STATE-OF-THE-ART FACILITIES INNOVATIVE PRODUCT PLATFORMS EXPERIENCED MANAGEMENT TEAM WITH DEEP CANNABIS DEEP PLANT EXPERTISE EXPERTISE DEEP CONSU
Slide 25: International
INTERNATIONAL 25
Slide 26: Key International Supply Arrangements
KEY INTERNATIONAL SUPPLY ARRANGEMENTS • In Fiscal 2022, shipped $15.4 million of dry flower internationally • Supply of dried flower to Canndoc for processing and distribution into Israeli medical market1 • Opportunity to launch Organigram-branded medical products in Israel, and grants exclusivity a
Slide 27: Market Outlook
MARKET OUTLOOK 27
Slide 28: Solid Projected Growth in Rec Market
SOLID PROJECTED GROWTH IN REC MARKET $8.8 $8.5 $7.9 CANADIAN ADULT-USE $7.2 RECREATIONAL MARKET – CALENDAR $6.4 YEARS (excludes Medical) $ Billions Source: The Brightfield Group, Q1 2022 2023 2024 2025 2026 2027 28
Slide 29: 258% Growth in Retail Stores
258% GROWTH IN RETAIL STORES 3,448 CANNABIS RETAIL STORES 258% • Ontario store count grew by 1,555% 1,688 • All of Canada store count grew by 258% 1555% 963 ONTARIO 102 Source: Company tracking from provincial websites, October 31, 2022 Jul-20 Oct-22 29
Slide 30: Appendix
APPENDIX 30
Slide 31: BAT Transaction Summary
BAT TRANSACTION SUMMARY • Subsidiary of BAT subscribed for 58.3M common shares of Organigram, which represented a 19.9% equity interest in March 20211 on a post-transaction basis. • Total proceeds to Organigram in March 2021 of ~C$221 million (the “Investment Proceeds”) Investment • The price per sh
Slide 32: A premium brand focused on flower & innovation
A premium brand focused on flower & innovation. Limelight 3.5g dried flower Edison JOLTS – Electric Lemon Cherry Limelight Bubble Hash Joints 32
Slide 33: An uplifting & vibrant value brand focused on convenience
An uplifting & vibrant value brand focused on convenience. Tropic Thunder 7g pre-milled Wild Berry Blaze SHRED’ems Gnarberry 1g 510 vape 33
Slide 34: Delivering high-quality ounces in a variety of strains
Delivering high-quality ounces in a variety of strains. Pink Cookies I.C.C. Ultra Sour 34
Slide 35: CBD and minor cannabinoid gummies
CBD and minor cannabinoid gummies, designed for a personal wellness ritual. Monjour Berry Good Day Monjour Orchard Medley 35
Slide 36: Premium hash, inspired by the timeless tradition of hashish
Premium hash, inspired by the timeless tradition of hashish. Tremblant 2g Hash 36
Slide 37: Craft cannabis featuring rare cultivars
Craft cannabis featuring rare cultivars grown with utmost attention and care. Laurentian Saisons 3.5 g 37
Slide 38: An imaginative brand with iconic strains and stellar extracts
An imaginative brand with iconic strains and stellar extracts. Holy Mountain Mac-1 3.5 g, R*ntz 3.5g, Pressed Hash 38
Slide 39: Fiscal 2022 Select Balance Sheet Metrics
FISCAL 2022 SELECT BALANCE SHEET METRICS SELECT BALANCE SHEET METRICS August 31, 2022 Aug 31, 2021 % Change Cash & short-term investments (excluding restricted cash) 98,607 183,555 (46%) Biological assets & inventories 68,282 48,818 40% Other current assets 54,734 28,242 94% In $000s unless Accounts
Slide 40: Q4 Fiscal 2022 Capital Structure
Q4 FISCAL 2022 CAPITAL STRUCTURE AUGUST 31, AUGUST 31, in $000s 2022 2021 Current and long-term debt 235 310 Shareholders’ equity 508,058 479,805 Total debt and shareholders’ equity 508,293 480,115 in 000s Outstanding common shares 313,816 298,786 - Options 11,051 7,797 - Warrants 16,944 16,944 - To
Slide 41: A Canadian Cannabis Leader
A CANADIAN CANNABIS LEADER NASDAQ (OGI) TSX (OGI) 41