Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q2 2024 Earnings Presentation
42 slides from Oatly Group AB's earnings presentation, Jul 24, 2024
Slide 1: Oatly Q2 2024 Earnings Presentation
THE ORIGINAL Ly! 20 2024 EARNINGS PRESENTATION
Slide 2: Today's Speakers
> TODAY's SPEAKERS J me, | | JEAN-CHRISTOPHE FLATIN, CEO DANIEL ORDONEZ, COO MARIE-JOSE DAVID, CFO
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking
Slide 4: Regional Update
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Slide 5: In Q2, we continued to strengthen the business and make good progress
LI IN Q2, WE CONTINUED TO STRENGTHEN THE BUSINESS AND MAKE GOOD PROGRESS DRIVING TOWARD PROFITABLE GROWTH To WE CONTINUED TO CONSISTENTLY TAKE ACTION ON OUR 2024 STRATEGIC PRIORITIES [ UPDATING FULL-YEAR GUIDANCE’ TO: - constant currency revenue growth’ of +6% to +10% - Adj. EBITDA? of §(35) million
Slide 6: Business continues to strengthen
BUSINESS CONTINUES TO STRENGTHEN AS WE DRIVE TOWARD PROFITABLE GROWTH ADJ. EBITDA? Y/Y VOLUME GROWTH (IN $MM) GROSS MARGIN ) 9(23) $(11) $(19 $(36) +10% $(50) §(s3) +3% +2h ' H | 11% i ' ' ' 1 (83): (1)% ! ' { $(83); | Full 10232023 «3023 4a23 «1g24 2024 | 2022 1023 2023 3023 4a23 1024 2024 3023 492
Slide 7: Each segment continued to make good progress
EACH SEGMENT CONTINUED TO MAKE GOOD PROGRESS ON THEIR IMPROVEMENT PLANS IN Q2 DRIVE CONSISTENT PROFITABLE GROWTH CONTINUED EUROPE & V PROFITABLE GROWTH INTL WHILE REINVESTING NORTH Y FIRST FULL QUARTER OF PROFITABLE GROWTH AMERICA wr a2 PROFITABLE MONTH DURING 02
Slide 8: 2024 Priority: Drive toward profitable growth
2024 PRIORITY: DRIVE TOWARD PROFITABLE GROWTH BRING THE CONTINUE OUR CONTINUED FOCUS OATLY MAGIC TO CALIBRATION OF ON EXECUTIONAL MORE PEOPLE RESOURCES EXCELLENCE
Slide 9: EF Pro Cycling performance partner
EF. PRO'CYCLING’ 5 “OF PERFORMANCE PARTNER”, RGGRESS)ON ALL KEY 3 AREAS
Slide 10: Doubling down on substance and reclaiming our why
DOUBLING DOWN ON SU —— — BSTANCE AND RECLAIMING OUR “WHY” Last time almost half of the CU citizens 4 didn’t vote. ve can’t afford that happening | agin. So go vote! And think about the planet. . when you do. a ‘Then bring your friends to a nearby café and toast to denocracy vith s coffee. The oat fi
Slide 11: Looking ahead
LOOKING AHEAD: COMPLETE OUR WORK ON CALIBRATION OF RESOURCES CONTINUE TO INVEST TO DRIVE GROWTH ACCELERATION »> MAINTAIN COST DISCIPLINE CONTINUE TO DRIVE TOWARDS STRUCTURAL, CONSISTENT PROFITABLE GROWTH
Slide 12: Regional Update
Slide 13: Solid performance by Europe & International segment
SOLID PERFORMANCE BY EUROPE & INTERNATIONAL SEGMENT CONSTANT CURRENCY REVENUE! Y/Y GROWTH ADJ. EBITDA’ §14,5 $12.6 $11.4 : i | 3Q23 4Q23 1024 2Q24 +90) L +7, ' +745% 4Q23 1924 2Q24
Slide 14: Continued broad-based strength in Europe & International
CONTINUED BROAD-BASED STRENGTH IN EUROPE & INTERNATIONAL Q2 GROWTH BALANCED BETWEEN Q2 GROWTH BALANCED BETWEEN RETAIL AND FOODSERVICE ESTABLISHED AND EXPANSION MARKETS? REVENUE VOLUME Y/Y GROWTH! Y/Y GROWTH +24% +9% +7% +6% Established European Expansion Retail Foodservice markets markets aa
Slide 15: In European expansion markets, we are the category growth driver
IN EUROPEAN EXPANSION MARKETS, WE ARE THE CATEGORY GROWTH DRIVER Y/Y RETAIL SALES GROWTH, Hi 2024 Spain 150% +1Lt% PLANT BASED MILKS OAT MILKS OATLY 108.3% () 426.7% Belgium 1.2% fF PLANT BASED MILKS OAT MILKS OATLY ( ) +26.7/ 47.8% France PLANT BASED MILKS OAT MILKS elsenIQ, HMSM+Conveniences week
Slide 16: Dialing up Oatly's insurgent voice
DIALING UP GATLY’S INSURGENT VOICE EVERYWHERE AND EVERY TIME WE SHOW UP. Fcok-Oatly @ Barcelona and Madrid VOAT! @ Top Europe Capitals Oatly launches @ CDMX| Be «. f
Slide 17: Supercharging the Oatly experience
SUPERCHARGING THE OATLY EXPERIENCE IN WORLD’S MOST VIBRANT CAPITALS
Slide 18: 18
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Slide 19: $1.2 +9.7% ($0.4) +4.6% ($2.7) +2.4% ($8.0) (3.6)% 3Q23 4Q23 1Q24 2Q24 3Q23 4Q23
$1.2 +9.7% ($0.4) +4.6% ($2.7) +2.4% ($8.0) (3.6)% 3Q23 4Q23 1Q24 2Q24 3Q23 4Q23 1Q24 2Q24 19
Slide 20: 4W Periods
0.0% 0.5% 1.0% 1.5% 2.5% 3.0% 4.0% -0.5% 2.0% 3.5% 09/09/23 10/07/23 11/04/23 12/02/23 12/30/23 01/27/24 4W Periods 02/24/24 03/23/24 04/20/24 05/18/24 06/15/24 20
Slide 21: Solid results in North America's foodservice
SOLID RESULTS IN NORTH AMERICA’S FOODSERVICE NORTH AMERICA FOODSERVICE REVENUE 89 $31.2 $28.6 2023 2Q24
Slide 22: Greater China is making progress
GREATER CHINA IS MAKING PROGRESS IN REBUILDING ITS TOP LINE VOLUME Y/Y GROWTH e 207 26.3% | GROWTH 0.4% | ml (4.9)% (16.6)% (15.8)% 2Q23 3Q23 4Q23 1Q24 2024 e VOLUME BOLSTERED BY NEW e CUSTOMER TEST China’s largest coffee chain is now the segment’s second largest customer based on YTD net sales Will
Slide 23: Greater China's profitability continued to improve in Q2
GREATER CHINA’S PROFITABILITY CONTINUED TO IMPROVE IN Q2 VERY GOOD PROGRESS IN CONTINUING TO DRIVE COST EFFICIENCIES CONTINUED IMPROVEMENT IN ADJ. EBITDA' DRIVEN BY MIX AND COST SAVINGS ADJ. EBITDA! ow! || $(0.4) 5(542) $(3.4) COGS PER LITER (48) Y/' | $(16.5) il | . 3Q23 4Q23 1024 2Q24 2023 3Q23 4Q
Slide 24: Financial Highlights
Slide 25: Financial performance overview
FINANCIAL PERFORMANCE OVERVIEW 2Q 2024 Y/Y Revenue Growth +3.2% Y/Y Constant Currency Revenue Growth? +3.9% Gross Margin 29.2% change vs prior year +1000 bps Adj. EBITDA? $(11,0) change vs prior year +941,5
Slide 26: Quarterly revenue bridge
— —$—$—$——<—$_— —_———.S SS —— = QUARTERLY REVENUE BRIDGE REVENUE (USD IN MILLIONS), ”% YEAR-OVER-YEAR GROWTH +3.27% REVENUE GROWTH +9.6% Y +3,9% Constant Currency Revenue Growth(2) Q2 2023 REVENUE YOY VOLUME GROWTH YOY CONSTANT CURRENCY Q2 2024 REVENUE PRICE/MIX GROWTH
Slide 27: Q2 segment-level revenue bridge
Q2 SEGMENT-LEVEL REVENUE BRIDGE % YEAR-OVER-YEAR GROWTH Constant Constant Revenue Currency Currency") Volume Price / Mix Growth FX Impact Growth Europe & Int’l 5.7% 1.8% 7.5% (0.6)% 6.9% North America 8.3% 1.4% 9.7% - 9.7% Greater China 26.3% (42.2)% (15.9)% (2.6)% (18.5)% Total 9.6% (5.7)% 3.9% (0.
Slide 28: Absorption & net pricing and inflation
ABSORPTION & NET PRICING AND INFLATION SUPPLY CHAIN PRODUCT MIX IMPROVEMENTS
Slide 29: Quarterly year-over-year Adj. EBITDA bridge
QUARTERLY YEAR-OVER-YEAR ADJ. EBITDA' BRIDGE Lo 7 $21.3 ($52.5) 02°23 ADJ. EBITDA GROSS PROFIT SG&A AND OTHER 02°24 ADJ. EBITDA
Slide 30: Quarterly segment-level profit
QUARTERLY SEGMENT-LEVEL PROFIT ADJ. EBITDA! $ in millions Q2_ 2024 Y/Y _$ Change Europe & International $12.6 + $11.3 North America 1.2 + 12,0 Greater China (0.4) + 18,1 Corporate (24.4) (0.1) Total $(11.0) + $41.5
Slide 31: Balance sheet & cash flow
BALANCE SHEET & CASH FLOW ig CASH FLOW BRIDGE 4 CASH FLOW REMAINS ON TRACK 2 FREE CASH FLOW": $(6t) WITH BUSINESS PLAN, AND WE ; h REMAIN FULLY FUNDED $209 sn ($11) ($7) ($14) LIQUIDITY REMAINS STRONG @ “ = $143 $335MM ($24) ($2) ($3) §143mm of cash + $192mm undrawn credit facilities $13MM OF YTD PL
Slide 32: Updating 2024 outlook
UPDATING 2024 OUTLOOK PRIOR UPDATED CONSTANT CURRENCY 5 ; ; , REVENUE GROWTH? +52 TO +107 +6% TO +107 ADJ. EBITDA? $(35) MM TO $(60) MM $(35) MM TO $(50) MM CAPEX BELOW $75 MILLION BELOW $70 MILLION
Slide 33: Appendix
APPENDIX
Slide 34: Revenue split by channel and region 2024
~~ LA REVENUE SPLIT BY CHANNEL — 20 2024 REVENUE SPLIT BY REGION ®) - 20 2024 4 14% 36% 52% 60% 34% Food retail Foodservice) Other?) MH) Europe & International North America Hi Greater China 34
Slide 35: Revenue split by channel 2024
“REVENUE SPLIT BY CHANNEL- 20.2024 EUROPE & INTERNATIONAL NORTH AMERICA | GREATERCHINA ———— (REVENUE SUMMARY 19% 21% v 46% D 52% 80% 70% Hi Food retail Foodservice() | Other(2) 35
Slide 36: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Europe & International North America Greater China Total revenue Three months ended aoraet $ Change % Change Foreign In Constant 2024 2023 — exchange constant Sind Inconstant = Velame currency reported = reported currency areas impact _currency price/mix
Slide 37: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Revenue, Adjusted EBITDA and EBITDA. Three months ended June 30,2024 Europe & North Greacer (Gn thousands of U.S. dollars) International _ America China Corporate! __Eliminations** Total Revenue ‘Revenue from external customers 105,541 (28,835 _ _— 202,1
Slide 38: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Reconciliation of Free Cash Flow to Net Cash Flows used in Operating Activities (Unaudited) Three months ended June 30, Six months ended June 30, (in thousands of U.S. dollars) 2024 2023 2024 2023 Net cash flows used in operating activities (46,935) (41,
Slide 39: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Revenue, Adjusted EBITDA and EBITDA Three months ended March 31, 2024 Europe & (in thousands of U.S. dollars) International North America Greater China _Corporate*__Eliminations** Total Revenue Revenue from external customers 110,407 66,967 21,781 199,15
Slide 40: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Three months ended September $0, 2023 Europe & International North Amerien Greater China Corporate: Eiminations** Tota Revenue Revenue from extemal customers 103,526 58.491 25.578 — — 187,595 Infersegment revenue 3.77 = 59 - G76) = Total segment revenue
Slide 41: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Three months ended June 80, 2022 Europe & International North America Greater China Corporate Etiminations** Toral Revenue Revenue from external customers 85,244 $1,775 40,939 — 177,958 Intersegment revenue 12,934 AL = = (13,175) — Total segment revenue
Slide 42: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Europe & International North America Greater China Total revenue Europe & International ‘North America Greater China Total revenue Europe é Intemational ‘Nort America Greater China Total revenne Three months ended 5 Pare $ Change Change Foreign In Consta