December 2015 Forward Looking Statements This presentation contains - PowerPoint PPT Presentation

LD Micro Presentation December 2015

Forward Looking 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" set out in the Company's current annual information form and management's discussion and analysis for the year ended December 31, 2014, which is available electronically at www.sedar.com. 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

Company Overview   A leading greenhouse grower & marketer of branded, Stock Data on November 30, 2015  Current Market Capitalization: US$25M high-quality hydroponically grown produce  Current Shares Outstanding: 38.8M  CPG company growing and selling fresh produce  Current Shares Diluted: 40.7 M  Vertically integrated year-round direct supplier to leading retail grocers  52 Week Hi/Lo: C$1.07 / $0.70  Oldest greenhouse operation and brand in the U.S.  Approx. Institutional Ownership: 25%  Largest greenhouse operator in North America  Approx. Insider Ownership: 52%  Strong reputation as industry leader in quality and food safety  Exclusive rights to grow and market certain tomato varieties  Highly Sustainable  Responsible growing practices  Highly productive compared to field farming - 30x  “Local” source produce supplier  Operating and marketing in Canada, US and Mexico  Greenhouse facilities owned – 240 acres  Exclusive marketing arrangements with US, MX and CA growers 3

Investor Considerations Largest Hydroponic Greenhouse Producer in North America Diverse Base Strong Track of National Record for Marquee Food Safety Customers Strong Consumer Proprietary Demand for Local, Greenhouse Sustainable Technology & Produces Varieties Highly Year Round Experienced Production Management and Capabilities High Production Team Barriers of Entry into Greenhouse Market 4

Greenhouse Produce – A Premium Product  Retail consumers pay a premium for Greenhouse produce  Offers more consistent quality, taste, appearance and food safety than field grown produce  Vine-Ripened Tomatoes  Consistent quality  Year-round production  Multiple varieties  Flavor fully develops/better taste  Peppers  Vibrant colors, firm skin  Stems; green and fresh  Sweet taste  English Cucumbers  Mini and Long  Thin dark green skin  Unwaxed/not coated  Seedless 5

Exclusive Varietal Innovation & Development One of three exclusive varieties Mini San Marzano Acres 50 44 45 40 35 28 30 VF Acres 25 18 20 15 10 5 0.5 0 2012 2013 2014 2015 Year 6

Marquee Customers

Size of Retail Produce Markets Dollar Dollar Dollar Contribution to Dollars % Volume % Contribution to Rank Product Dollars Volume Contribution to Dollars YAGO Volume YAGO Department Change vs YAGO Change vs YAGO Department Department YAGO Change vs YAGO Produce $46,454,638,038 31,496,278,973 100.0%$44,753,129,589 30,653,268,424 100.0% 3.8% 2.8% 0.0% 1 Berries $3,912,233,742 1,309,025,302 8.4% $3,695,174,358 1,236,444,907 8.3% 5.9% 5.9% 0.2% 2 Packaged Salad $3,539,480,185 1,271,433,035 7.6% $3,225,382,908 1,184,307,739 7.2% 9.7% 7.4% 0.4% 3 Citrus $2,775,069,269 2,221,698,253 6.0% $2,548,791,875 2,053,911,612 5.7% 8.9% 8.2% 0.3% 4 Apples $2,772,422,455 1,811,679,404 6.0% $2,840,389,531 1,790,455,854 6.3% -2.4% 1.2% -0.4% 5 Grapes $2,595,599,510 1,189,582,092 5.6% $2,573,834,844 1,151,268,002 5.8% 0.8% 3.3% -0.2% 6 Bananas $2,516,454,986 4,419,180,993 5.4% $2,532,014,178 4,425,832,471 5.7% -0.6% -0.2% -0.2% 7 Tomatoes $2,493,666,260 1,090,359,180 5.4% $2,356,269,328 1,071,610,773 5.3% 5.8% 1.7% 0.1% 8 Potatoes $2,348,682,398 3,401,915,482 5.1% $2,389,388,861 3,462,052,712 5.3% -1.7% -1.7% -0.3% 9 Value-Added Fruit $2,108,584,762 665,414,007 4.5% $1,946,485,487 651,911,615 4.3% 8.3% 2.1% 0.2% 10 Cooking Vegetables $1,699,311,257 1,002,588,595 3.7% $1,651,014,161 998,792,304 3.7% 2.9% 0.4% -0.0% 11 Value-Added Vegetables $1,607,086,679 518,443,898 3.5% $1,455,086,742 481,682,484 3.3% 10.4% 7.6% 0.2% 12 Onions $1,416,899,113 1,425,574,256 3.1% $1,439,928,751 1,459,543,349 3.2% -1.6% -2.3% -0.2% 13 Peppers $1,349,839,709 603,537,092 2.9% $1,287,084,581 584,964,908 2.9% 4.9% 3.2% 0.0% 14 Beverages $1,258,307,001 379,803,635 2.7% $1,095,152,691 338,460,635 2.4% 14.9% 12.2% 0.3% 15 Avocados $1,227,853,537 1,180,559,078 2.6% $1,088,506,577 975,759,447 2.4% 12.8% 21.0% 0.2% 16 Lettuce $1,216,750,888 659,254,010 2.6% $1,174,275,708 656,987,587 2.6% 3.6% 0.3% -0.0% 17 Melons $1,137,139,444 2,150,169,617 2.4% $1,122,872,250 2,020,200,736 2.5% 1.3% 6.4% -0.1% 18 Nuts & Seeds $1,080,284,477 165,950,928 2.3% $1,077,708,503 175,466,415 2.4% 0.2% -5.4% -0.1% 19 Stone Fruits $887,032,230 478,935,950 1.9% $920,430,128 484,199,229 2.1% -3.6% -1.1% -0.1% Herbs, Spices and 20 $868,251,642 660,216,177 1.9% $796,814,648 626,013,941 1.8% 9.0% 5.5% 0.1% Seasonings 21 Cucumbers $710,728,363 714,903,284 1.5% $674,848,566 684,659,372 1.5% 5.3% 4.4% 0.0% Top 21 US Produce Category Contribution to Department for 52 weeks Ending 09/26/15 8

U.S. Tomato Retail Market Segmentation Undefined 92,820,865 8% Greenhouse Field 454,057,094 543,481,008 42% 50% Retail Tomato Dollars Retail Tomato Volume (lbs) Note – information above excludes Costco and BJs which are 100% Greenhouse retailers. 9

Strategically Located Operations  VFF has the logistics and distribution capabilities to ensure fresh high quality produce that meets consumer demands. Partner Growers VF Greenhouses British Columbia Canada  3 greenhouses in Delta, BC  85 total acres – 3 facilities  441,168 square metres  65 acres - Tomatoes  110 acres  9 acres – Bell peppers  11 acres – English cucumbers  Production:  Production – year round  Tomatoes-on-the-vine  Beefsteak tomatoes Mexico  Cocktail tomatoes  45 total acres – 3 facilities  Specialties  All tomato types Texas  Mini -cucumbers  2 greenhouses in Marfa & Ft. Davis  100 acres  Production: 4  All varieties of tomatoes Greenhouses  1 greenhouse in Monahans Partners  30 acres  Production: Distribution Centers  Tomatoes-on-the-vine  Long English Cucumbers Corporate Offices 10

Financial Performance  VFF revenue negatively impacted by Loss of Acreage  Hail Storm in May 2012 – took out 82 acres – reducing production and revenues  40 Acres up and operational late 2012  Another 20 acres up and operational in Summer 2014 (20 acres to be rebuilt – TBD)  VFF EBITDA impacted by  Hail Storm Proceeds in 2012 & 2013  Low Pricing on TOV variety most of 2014  LTM Trending Higher - due to lower TOV and increased higher margin specialties Revenue (US$ millions) EBITDA (US$ millions) $30.0 $180.0 $164.4 $25.0 $160.0 $144.8 $133.9 $137.6 $136.6 $133.6 $133.1 $130.5 $20.0 $140.0 $19.0 $15.1 $15.7 $120.0 $15.0 $100.0 $12.9 $10.7 $80.0 $10.0 $9.1 $8.7 $60.0 $5.0 $40.0 $1.6 $20.0 $- $- 2008 2009 2010 2011 2012 2013 2014 LTM 2008 2009 2010 2011 2012 2013 2014 LTM Reported EBITDA Normalized EBITDA 11

Select Balance Sheet Info As of Sept. 30 As of Dec 31 Expressed in Thousands USD (000’s) 2015 2014 Assets Cash $ 5,147 $ 6,337 Accounts Receivable $10,197 $ 9,168 Inventory (Including Bio Asset) $16,994 $19,122 Other $ 839 $1,168 Net Fixed Assets $ 97,653 $103,094 Total Assets $130,830 $138,889 Liabilities Short Term Debt $4,392 $ 4,418 Accounts payable $8,551 $11,795 Other (Including Def. Tax) $11,929 $12,729 Long Term Debt $45,534 $48,947 Total Liabilities $70,406 $77,889 Shareholders' Equity $60,424 $61,000 12