Organigram Global Inc. · TSX:OGI
Organigram Global — Investor Presentation (November 2021)
32 slides from Organigram Global's investor presentation, Nov 22, 2021
Slide 1: Organigram Investor Presentation (Updated: Q4 Fiscal 2021)
ORGANIGRAM INVESTOR PRESENTATION (UPDATED: Q4 FISCAL 2021) NASDAQ (OGI) TSX (OGI)
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This document is current as of November 22, 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”)
Slide 3: Organigram At-a-Glance
ORGANIGRAM AT-A-GLANCE LEADING LICENSED 3 LEVEL INDOOR DEDICATED EDIBLES AND NATIONAL INNOVATION INTERNATIONAL PRODUCER CULTIVATION DERIVATIVES FACILITIES DISTRIBUTION FOCUS REACH Leading licensed producer Large indoor facility in Vape filling, CO2 extraction National sales and Product Development C
Slide 4: Q4 Update
Q4 UPDATE
Slide 5: Q4 F2021 Revenue Growth From Prior Year Period
Q4 F2021 REVENUE GROWTH FROM PRIOR YEAR PERIOD TOTAL Revenue RECREATIONAL Revenue • Grew total gross and net revenue GROSS NET GROSS NET 43% and 22%, $34,054 $22,898 respectively $36,182 $24,865 $20,400 $25,389 $19,847 $15,063 • Grew adult-use rec gross and net revenue 72% and 52%, respectively 31%
Slide 6: Q4 F2021 Revenue Growth Sequentially From Q3 F2021
Q4 F2021 REVENUE GROWTH SEQUENTIALLY FROM Q3 F2021 TOTAL Revenue RECREATIONAL Revenue • Grew total gross GROSS NET GROSS NET and net revenue 24% and 22%, $36,182 $22,898 respectively $24,865 $34,054 $29,105 $20,324 $16,840 • Grew recreational $25,454 gross and net revenue 34% and 36%, respectively 5
Slide 7: 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 November 22, 2021, the Company had cash and short- term investments (including restricted funds) of $203 million 6
Slide 8: Q1 Fiscal 2022 Outlook
Q1 FISCAL 2022 OUTLOOK1 • Net revenue expected to be higher in Q1 F2022 vs. Q4 F2021 due to: • Stronger forecasted market growth as Covid-19 restrictions continue to lift and the retail network expands • Strong market share momentum – from 5.4% in Q3 F2021 to 7% in Q4 F2021. As of October 2021, the
Slide 9: Potential Upside for Gross Margins
POTENTIAL UPSIDE FOR GROSS MARGINS Potential to further improve adjusted gross margins over time: • Economies of scale and efficiencies gained as the Company continues to scale up cultivation; • Changes to growing and harvesting methodologies in addition to design improvements and environmental enha
Slide 10: Company Overview
COMPANY OVERVIEW
Slide 11: Three Level Indoor Cultivation "Moncton Campus"
THREE LEVEL INDOOR CULTIVATION “MONCTON CAMPUS” • Strain-specific grow rooms • Micro-climates provide the ability to control all critical factors affecting the growing environment • Phase 4C (under construction) and design improvements to Moncton grow rooms expected to result in higher quality flowe
Slide 12: Dedicated Edibles and Derivatives Facilities
DEDICATED EDIBLES AND DERIVATIVES FACILITIES • Winnipeg-based 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 n
Slide 13: Recreational Portfolio
RECREATIONAL PORTFOLIO NEW Pricing Value Value Value Wellness Premium Mainstream Segment Pre-Milled Flower, Whole Flower, Whole Flower, Available / Pre-Roll Joint Multipacks, Pre-Roll Joints, Chocolate & Whole Flower CBD Gummies Planned Formats Pre-Roll Joints, Chocolate Infused Gummies Vape Pens Tr
Slide 14: Product Development Collaboration & Strategic Investment
PRODUCT DEVELOPMENT COLLABORATION & STRATEGIC INVESTMENT Transaction Highlights Strategic Rationale • ~C$221M strategic investment from • Accelerates and strengthens Organigram’s R&D and product subsidiary of BAT for 19.9% equity development activities, including granting access to certain BAT- inte
Slide 15: Product Development Collaboration (PDC)
PRODUCT DEVELOPMENT COLLABORATION (PDC) CENTER OF EXCELLENCE (“CoE”) • Successfully launched at Organigram’s Moncton Campus • 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
Slide 16: Alignment of Capabilities & Resources
ALIGNMENT OF CAPABILITIES & RESOURCES LEADING CONSUMER GOODS BUSINESS LEADING LICENSED PRODUCER OF HIGH-QUALITY CANNABIS PRODUCTS SOPHISTICATED MANAGEMENT STATE-OF-THE-ART FACILITIES INNOVATIVE PRODUCT PLATFORMS EXPERIENCED MANAGEMENT TEAM DEEP PLANT EXPERTISE WITH DEEP CANNABIS EXPERTISE DEEP CONSU
Slide 17: 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 more than 12 years • Canndoc’s GMP-approv
Slide 18: Investment in Disruptive Technology-Biosynthesis
INVESTMENT IN DISRUPTIVE TECHNOLOGY-BIOSYNTHESIS • Investment in Hyasynth, a biotech company and leader in the field of cannabinoid science and biosynthesis • Hyasynth’s biosynthesis process uses patent-pending yeast strains and enzymes to BIOSYNTHESIS How it works? produce pure cannabinoids (not sy
Slide 19: Industry
INDUSTRY
Slide 20: Canadian Recreational Retail Market Growth
CANADIAN RECREATIONAL RETAIL MARKET GROWTH ANNUALIZED RUN RATE $4.3B • Canadian recreational retail sales per Statistics Canada in Sept 2021 were $354.67MM or $4.26B annualized Ontario 556 for continued year-over-year growth of 34% since Sept 2020 $3.1B • BDSA estimates close to $8B in Canadian recr
Slide 21: Canadian Retail Network Growing
CANADIAN RETAIL NETWORK GROWING CANNABIS RETAIL STORES NUMBER OF ONTARIO RETAIL STORE IN 10 PROVINCES 2,793 AUTHORIZATIONS PER MONTH Increase of Sept- Dec- Today* 190% 2020 2020 963 ONTARIO Increase of 20 40 80 100 102 ONTARIO 1152% 1,277 Jul-2020 Sept-2021 Quadrupled ONTARIO GREW 1152% | Canada’s 1
Slide 22: Appendix
APPENDIX
Slide 23: BAT Transaction Summary
BAT TRANSACTION SUMMARY • Subsidiary of BAT subscribed for 58.3M common shares of OGI, which represents a 19.9% equity interest1 on a post-transaction basis, at a price of C$3.792 per share Investment • Total proceeds to OGI of ~C$221 million (the “Investment Proceeds”) • The price per share is base
Slide 24: Edison brand products
At Edison, we believe in using scientific rigour to grow high-quality flower and to cultivate a deeper appreciation for the cannabis plant. We hunt for the most promising genetics and use our unique science-based growing methods to maximize the best attributes of every plant and product. Feather 510
Slide 25: Big Bag 'O' Buds
Not all flower is worthy of an ounce, unless you’re Big Bag ‘O’ Buds. We cultivate the best to give you big terps and big buds, all in a big bag. Ice Cream Cake 28g Lemon Margy 28g Ultra Sour 28g 24
Slide 26: SHRED pre-milled flower
SHRED is here to make your cannabis experience easier. From roll to bowl, SHRED is pre-milled, high-quality whole- flower that’s ready-to-use. You can trust that every pouch is top-shelf, never shake. And you won’t find stems or sticks, either just pre-milled nugs with at least 18% THC. Shred 7g | 1
Slide 27: SHRED'ems gummies
Introducing the squishy sequel to SHRED – our new infused gummies called SHRED’ems. These gummies are squishy explosions of flavour you can pop right into your mouth. All you have to do is drop in and send it. Shred’ems Gummies 2 x 5 mg THC | 4 x 2.5 mg THC 26
Slide 28: Monjour CBD gummies
Be it physical, mental or spiritual balance you are searching for, Monjour’s range of vegan and sugar-free CBD gummies provide an easy and delicious way to incorporate a moment of wellness in your everyday. Monjour 30 x 20 mg CBD Monjour Bare 30 x 20 mg CBD 27
Slide 29: Trailblazer brand
The Trailblazer brand stays true to its name, offering quality cannabis products in ready-to-use, convenient and innovative formats. Be it delicious chocolates, flavourful flower, or portable pre-rolls, we have the cannabis for the moments of brightness to keep you blazing on. Torch 510 Distillate V
Slide 30: Q4 Fiscal 2021 Select Key Financial Metrics
Q4 FISCAL 2021 SELECT KEY FINANCIAL METRICS
Slide 31: Q4 Fiscal 2021 Select Balance Sheet Metrics
Q4 FISCAL 2021 SELECT BALANCE SHEET METRICS
Slide 32: Q4 Fiscal 2021 Capital Structure
Q4 FISCAL 2021 CAPITAL STRUCTURE
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