July 2020 AN UNMATCHED PLATFORM FOR THE INTERNATIONAL CANNABIS OPPORTUNITY 1
Forw rward Lo Lookin ing St Statements 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 prospects, opportunities or industry performance and trends. These forward-looking statements reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to the Company. In some cases, forward looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict" , "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, including, but not limited to, such risks and uncertainties as availability of resource, competitive pressures and changes in market activity, risks associated with U.S. and Canadian sales and foreign exchange, regulatory requirements and all of the other "Risk Factors" contained in the Company's filings with securities regulators, including its Annual Report on Form 10-K, which are available at www.sec.gov/edgar and www.sedar.com and the Company’s web site. Actual results may differ materially from any forward-looking statement. Although the Company believes that the forward-looking statements contained in this presentation are based upon reasonable assumptions, you cannot be assured that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation, and other than as specifically required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. 2
Mark rket Facts (As of July 15, 2020) MANAGEMENT LISTING MARKET 52-WEEK SHARES & BOARD PRICE SYMBOL CAPITALIZATION HIGH/LOW OUTSTANDING OWNERSHIP 56.3 M ~19.7% C$401 M C$19.29 TSX:VFF $7.13 C$3.01 (basic) (basic) 59.4 M US$296 M NASDAQ: $5.25 US$14.60 (diluted) US$2.07 (basic) VFF Publicly traded company on TSX since 2006 (NASDAQ since 2019) Very strong alignment of management and shareholders 3
Village Farms’ Vision To o be a a hig ighly ly profitable le, plan lant-based Con onsumer Packaged Go Goods company, le leveragin ing ou our decades of of experie ience as as lar large-scale le, lo low-cost greenhouse grower an and vertically ly in integrated supplier to North America’s major grocers and “big box” retailers for emerging, high -valu lue opportunitie op ies Can anadian Leg Legal l Can annabis is U.S .S. CBD U.S .S. Le Legal l Can annabis is Mar arket For orecast Mar arket For orecast Mar arket For orecast: in 2021 1 $3.3B in $12B by 2025 2 $30B by 2025 3 $6.0B by 2025 2 1. RBC Dominion Securities 2. Raymond James 3. Brightfield Group 4. Arcview/BDS Analytics Global CBD opportunity: $22B by 2022 2 Global high-THC cannabis opportunity: $47B by 2025 5 4
Unmatched Nort rth Ameri rican Greenhouse Asse ssets 8.3 M ft 2 (190 acres) Owned Ass ssets Ca Canada: De Delta, BC BC 1 Faci acilit ity - Veg egetable les ft. (60 (60 ac acres) s) 2.6 M M sq. q. ft U.S .S.: Wes est t Texas 4 Faci acilities - Veg egetables 5.7 M M sq. q. ft ft. (13 (130 ac acres) 2.2 M ft 2 (50 acres) Pure Su Sunfarms (58.7 % Owned Cannabis JV) Canada: De Ca Delta, BC BC ft 2 2 Faci acilit itie ies: : De Delt lta 3 & & 2 -- -- 2.2 M M ft Growin Gr ing ~13.2 M ft 2 (~305 acres) ft 2 (~ Par artners Mexico: ~5. ~5.0 M ft (~115 ac acres) ft 2 (~ Ontario: ~5 ~5.2 .2 M ft (~120 ac acres) Veg egetable les ft 2 2 (~ BC: ~3 BC: ~3.0 .0 M ft (~70 ac acres) Di Distrib ibution ft 2 Vancouver, BC BC: ~1 ~110,0 ,000 ft Head Of Hea Offic fice: Orla Orlando ft 2 For ort t Wor orth, TX: X: ~6 ~65,0 ,000 ft Centers 5 5
Leaders in Le in Hig igh-Tech, Lo Low-Cost Vert rtic icall lly In Integrated Greenhouse Growin ing 750 years Exp xperts in n agric agricult ltural l pr prod oduct safety of combined master grower experience from around the world 30 30-year Leaders history developing and operating in n crop op ma management regi egistratio ions in n Nort North Am Americ ica mega-scale greenhouses Decades of experience as a Proven vertically integrated grower/distributor, meeting the stringent specifications of tr track recor ord as as a a North America’s top grocers low-cos ost op oper erator or Cannabis and hemp are agricultural products like any other 6
CANADA Majority- Ownership of Canada’s Premier Cannabis Supplier 7
Dif ifferentiated Cannabis Str trategy Driv iving In Industry-Leading Performance Con onversion of of exis istin ing lar large sc scale, lo low-cost precis ision ag agricult ltural l op operations Extensive in-house facilities development and conversion expertise Proven operating systems, 20 years of site- specific experience & trained labor force Experienced growing/operational teams Decades of climatological data President/CEO: Mandesh Dosanjh Former SVP w/ LCBO where he developed & managed supply chain/wholesale strategy for recreational cannabis in Ontario Supported by Village Farms’ three decades of experience growing many different crops 8
Pure Sunfarms is is Setting th the Standard in in Canada Ramp to full production at Delta 3 facility in <15 months One of the largest Canadian LPs by net recreational cannabis sales: C$82.8 M (2019) Lowest “all in” cultivation cost 1 reported by a Canadian LP: C$0.74/gram 2 Industry leading EBITDA margin: 65% (2019) One of the very few profitable Canadian LPs: Five consecutive quarters of net income 1. Based on dried flower grams only (not including trim or shatter). Includes depreciation. 2. Average of last four quarters. Cultivation cost impacted by seasonal costs, primarily utilities and co-gen rentals in winter months not in summer months. Performance achieved while greenhouse operations were in ramp up for much of that period 9
Pure Sunfarms : One of Canada’s Top Retail Cannabis Suppliers Pure Su Sunfarms Products No Now Avail ilable le in in 4 4 of of th the 5 5 Lar Largest Provin incial l Mar arkets in in Can anada Ontario io Br Brit itis ish Co Colu lumbia ia Saskatchewan Sa Albe lberta La Launched: : Se Sept 2019 Launched: La : Oct 2019 Launched: La : Feb 2020 La Launched: : June 2020 ~3% of Cdn pop’n ~39% of Cdn pop’n ~14% of Cdn pop’n ~12% of Cdn pop’n LTM sales: $348 M 1 LTM sales: $408 M 1 LTM sales: $176 M 1 LTM sales: $91 M 1 22% of Cdn sales 2 25% of Cdn sales 2 11% of Cdn sales 2 6% of Cdn sales 2 $28 sales per capita 2 $34 sales per capita 2 $79 sales per capita 2 $77 sales per capita 2 ~100 retail outlets ~180 retail outlets >430 retail outlets ~44 retail outlets (1 per ~135,000 people) (1 per ~28,000 people) (1 per ~10,000 people) (1 per ~27,000 people) Selling to ~ 70 % of the Canadian market 3 1. Source: Statistics Canada. 2. Based on LTM sales (April 2020-May 2019). 3. By population. Includes Manitoba. Approved to begin shipping to Manitoba Full line of branded dried flower products now available in Ontario and B.C., and in Alberta Full line of branded dried flower products now available in Ontario and B.C., and in Alberta Actively pursuing supply agreements with additional provincial boards starting in the coming weeks / Preparing for launch of Cannabis 2.0 products in Q2 2020 10 10 starting in the coming weeks / Preparing for launch of Cannabis 2.0 products in Q2 2020
Leading Drie ied Cannabis Brand and Product Performance Hig igh-qualit ity B.C.-grown products th that con onsumers wan ant at t an an ap approachable le pric rice-poin int Broad range of dried flower products/sizes: • #1 brand: 14.3% market share with OCS 1,2,3 • 20% market share with OCS in April 2020 4 • #1 product 5 and 2 of top 4 products 4 with OCS 2 Retail price as low as $99/package ($3.54/g) 6 New Large-Format • #1 dried cannabis product with OCS in April 3 28g (1oz) • Record one-week sales volume with OCS Value Packages for a dried cannabis product Launched March 2020 1. Ontario Cannabis Store. 2. YTD ended April 30, 2020. 3. By both kg sold and dollars sold. 4. By kg sold. 5. By dollars sold. 6. BC Cannabis Stores. Conceptual packaging shown. Note: OCS data has been calculated by Pure Sunfarms from sales data provided by OCS. Launched two new dried flower strains, D. Bubba and high-THC Pink Kush, in June 2020 broadly launched pre-rolls in June 2020 11 11
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