Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q3 2024 Earnings Presentation
43 slides from Oatly Group AB's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Presentation
THE ORIGINAL Ly! 30 2024 EARNINGS PRESENTATION
Slide 2: Today's Speakers
| | > L_ __TODAv's SPEAKERS J JEAN-CHRISTOPHE FLATIN, CEO DANIEL ORDONEZ, COO MARIE-JOSE DAVID, CFO Sensitivity: Internal
Slide 3: Forward-Looking Statements
Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this document that are not statements of historical fact may be deemed to be forward-looking stateme
Slide 4: Sensitivity: Internal
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Slide 5: Q3 Results Demonstrate Continued Progress Toward Profitable Growth
LI »> Q3 RESULTS DEMONSTRATE CONTINUED PROGRESS TOWARD PROFITABLE GROWTH »> ALL THREE OPERATING SEGMENTS ACHIEVED PROFITABLE GROWTH IN THE QUARTER »> REFINING FULL-YEAR GUIDANCE’ TO: - constant currency revenue growth’ near, or slightly below, low end of prior +6% to +10% range - Adj. EBITDA! near f
Slide 6: We Continued to Drive Toward Profitable Growth in Q3
WE CONTINUED TO DRIVE TOWARD PROFITABLE GROWTH IN Q3 LY! Y/Y CONSTANT CURRENCY ADJ. EBITDA’ REVENUE GROWTH! (IN $MM) Flat 2022 1923 2023 3023 4023 1024 2024 3024 3Q23 4023 1024 2024 3Q24 quarterly Range 1.Constant currency revenue growth and adjusted EBITIA are a non-IFAS measures. See the Appendix
Slide 7: Business Has Continued to Strengthen
BUSINESS HAS CONTINUED TO STRENGTHEN Ly! Y/Y VOLUME GROWTH GROSS MARGIN +2700 BPS VS 2 YEARS AGO 3Q22 1923 2023 3923 4Q23 1024 2024 3024 3Q23 4023 1024 2024 3Q24 Branding & advertising investments consistently in the mid-to-high single digits as a % of sales
Slide 8: Each Segment Has Executed Well on Their Improvement Plans
‘THE ORIGINAL EACH SEGMENT HAS EXECUTED WELL ON THEIR IMPROVEMENT PLANS yi DRIVE PROFITABLE GROWTH CONTINUED ~ A YW PROFITABLE GROWTH WHILE REINVESTING CONTINUED i PROFITABLE GROWTH WHILE REINVESTING FIRST FULL QUARTER OF VY V/ PROFITABLE GROWTH INQ3
Slide 9: First Quarter of Profitable Growth for All Segments
FIRST QUARTER OF PROFITABLE GROWTH FOR ALL SEGMENTS! EUROPE & NORTH --- INTERNATIONAL ------ AMERICA $12MM +18.17 4.0% $3MM Revenue Adj. EBITDA Revenue Adj. EBITDA Growth Growth Constant Currency Sesisitivkeyitinternacy revenue grouth and adjusted EBITOA are a es. See the Appendix to this presentati
Slide 10: Looking Ahead
LOOKING AHEAD Ly! »> CONTINUE TO DRIVE TOWARD STRUCTURAL, CONSISTENT PROFITABLE GROWTH »> DISCIPLINED INCREASE IN GROWTH-DRIVING INVESTMENTS »> COMPLETE OUR WORK ON CALIBRATION OF RESOURCES
Slide 11: Europe & International
Sensitivity: Internal
Slide 12: Solid Performance by Europe & International Segment
SOLID PERFORMANCE BY EUROPE & INTERNATIONAL SEGMENT pocseseeeee REVENUE ----------- pocsoncon ADJ. EBITDA! +67 VEAR-OVER-YEAR +467 VEAR-OVER-YEAR +47 IN CONSTANT CURRENCY! $12 $110
Slide 13: Europe & International: Continued Broad-Based Strength
EUROPE & INTERNATIONAL: CONTINUED BROAD-BASED STRENGTH 03 GROWTH BALANCED BETWEEN RETAIL AND FOODSERVICE Volume Y/Y growth +7h Retail Foodservice (1) Established markets include the UK, Germany, Sueden, the Netherlands, Finland, Norway, Austria, and Su: SensitivnyanterAanmark, France, Belgium, Italy
Slide 14: Continued Retail Strength in European Markets
CONTINUED RETAIL STRENGTH IN EUROPEAN MARKETS Ly! Q3 EUROPEAN RETAIL TAKEAWAY BROAD-BASED SHARE GAINS' Y/Y SALES GROWTH! INCREASED VALUE SHARE OF PLANT-BASED MILK Y/Y IN 10 OF 11 COUNTRIES MEASURED ~FLAT ~FLAT Plant-Based Oat Drinks Qatly Milk
Slide 15: The Barista Family
THE BARISTA FAMILY +97 IN Q3 +11% YTD
Slide 16: North America
16 Sensitivity: Internal
Slide 17: New Campaign: Taste Preference in Germany
NEW CAMPAIGN: TASTE PREFERENCE IN GERMANY Translation: Ina blind test 53% prefer Oatly to rR I z Bei einer Blindverkostung bevorzugen 53% Oatly anstelle von Kuhmilch im Kaffee. 4
Slide 18: North America: Continued Solid Profitable Growth in Q3
tot sénéi NORTH AMERICA: CONTINUED SOLID PROFITABLE GROWTH IN 03 pennneneeees REVENUE ----------- ----------- ADJ. EBITDA! --------- +187 VEAR-OVER-VEAR +$11MM Year-over-vEAR
Slide 19: Broad-Based Growth in North America
‘THE oftcimaL BROAD-BASED GROWTH IN NORTH AMERICA @AT- Ly! NORTH AMERICA NORTH AMERICA aoo----4 ee, ooo PSAs, $36.3 $31.2 $31.2 $26.0 3Q23 3Q24 3Q23 3Q24 19 Sensitivity: Internal
Slide 20: North America: Continued Strong Retail Market Share
‘THE ORIGINAL NORTH AMERICA: i) CONTINUED STRONG RETAIL MARKET SHARE ! OATLY’S VALUE SHARE OF TOTAL OATLY’S VALUE SHARE OF TOTAL __-NON-DAIRY MILK CATEGORY! __ ___._._QATMILK CATEGORY! 27% 26.67% % 5.8% vos 25h oh oad : [| oh 20% ' ' ' ' ' Oot 7 125° Dec 30 125 Mar 23 124 Jun 15 '24 Oct S 124 Gct 71
Slide 21: North America: Expect to Continue the Distribution Momentum
NORTH AMERICA: EXPECT TO CONTINUE THE DISTRIBUTION MOMENTUM STRONG CHILLED OAT MILK DISTRIBUTION GROWTH MORE DISTRIBUTION GAINS TO COME TOTAL DISTRIBUTION POINTS ACV NOW 447 SénsnaetyYintepfalctel US xACC, 12-veek period ending Oct, 5, 2024, Oata is for Chilled cat milk.
Slide 22: Greater China: Drove First Quarter of Profitable Growth in Q3
GREATER CHINA: DROVE FIRST QUARTER OF PROFITABLE GROWTH IN Q3 en REVENUE ----------- ----------- ADJ. EBITDA! --------- +147 VEAR-OVER-YEAR +$18MM vear-over-VEAR +127. IN CONSTANT CURRENCY! $29
Slide 23: Greater China: Largest Coffee Chains Increasingly Offering Oatmilk Options
‘THE ORIGINAL GREATER CHINA: LARGEST COFFEE CHAINS INCREASINGLY OFFERING OATMILK OPTIONS LY! Sensitivity: Internal
Slide 24: Financials
Sensitivity: Internal
Slide 25: 3Q 2024 Financial Summary
3Q 2024 Y/Y Revenue Growth +10,9% Y/Y Constant Currency Revenue Growth? +9.6% Gross Margin 29.8% change vs prior year +1240 bps change vs prior quarter +60 bps Adj. EBITDA? $(5.0) change vs prior year +$31.0 % of total revenue (2.4)%
Slide 26: Quarterly Revenue Bridge
— —$—$—<$—$<_ ee —— ——— = QUARTERLY REVENUE BRIDGE REVENUE (USD IN MILLIONS), % YEAR-OVER-YEAR GROWTH +10.97% +9,6% Constant Currency REENE Revenue Growth? i +13,0% 41.3% 03 2023 REVENUE YOY VOLUME IMPACT YOY CONSTANT CURRENCY FX IMPACT 03 2024 REVENUE PRICE/MIX IMPACT lease 00 appendix for a reconc
Slide 27: Q3 Segment-Level Revenue Bridge
Q3 SEGMENT-LEVEL REVENUE BRIDGE % YEAR-OVER-YEAR GROWTH Constant Constant I I I I Currency? | Currency’ | Revenue I Volume Price / Mix | Growth FX Impact Growth I Europe & Int’l 5.4% (1.4)% 4,0% 2.1% 6.1% I I I North America 17.6% 0.5% 18.1% | - 18.1% I I I I Greater China 35.63% (22.9)% 12.4% 1.3%
Slide 28: Quarterly Year-over-Year Gross Margin Bridge
———_—_———— QUARTERLY YEAR-OVER-YEAR GROSS M MARGIN BRIDGE INCLUDES ~320BP5 BENEFIT FROM GREATER CHINA RESET COSTS IN PRIOR YEAR PERIOD ABSORPTION & NET PRICING AND INFLATION SUPPLY CHAIN PRODUCT MIX IMPROVEMENTS notes: Sensitivitys lrtermetoaine
Slide 29: 3Q 2024 Adj. EBITDA
3°23 ADJ. EBITDA GROSS PROFIT SG&A AND OTHER 03°24 ADJ. EBITDA Sensitivity: Internal
Slide 30: Quarterly Segment-Level Profit
QUARTERLY SEGMENT-LEVEL PROFIT ADJ. EBITDA! § in millions Q3_ 2024 Y/Y $ Change Europe & International $12.4 + $3.9 North America 3.3 + 11.3 Greater China 1.6 + 18.1 Corporate (22.4) (2.4) Total $(5.0) + $31.0
Slide 31: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW MD WE REMAIN FULLY FUNDED > LIQUIDITY REMAINS STRONG @ $322MM $119mm of cash + $203mm undrawn credit facilities »> CASH FLOW REMAINS ON TRACK WITH PLAN »> 03 FREE CASH FLOW' OF $(27)MM IS BEST QUARTERLY PERFORMANCE SINCE IPO shnsifiiity: Tiberi 4° © nerHFRS sessure, See the
Slide 32: 2024 Outlook
2024 OUTLOOK Ly! PRIOR NEW CONSTANT CURRENCY +62 TO +107 NEAR, OR SLIGHTLY BELOW, REVENUE GROWTH? : ° LOW END OF PRIOR RANGE NEAR FAVORABLE END ADJ. EBITDA? = $(35) MM TO $(50) MM OF PRIOR RANGE CAPEX BELOW $70 MILLION BELOW $55 MILLION
Slide 33: Appendix
Sensitivity: Internal
Slide 34: Sensitivity: Internal
Sensitivity: Internal
Slide 35: Sensitivity: Internal
Sensitivity: Internal
Slide 36: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Europe & International North America Greater China Total revenue Sensitivity: Internal Three months ended September 30, S$ Change 9% Change Foreign In Constant 2024 2023 As exchange constant As Inconstant — Vsiume currency reported = ported currency impa
Slide 37: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Revenue, Adjusted EBITDA and EBITDA Three months ended September 30, 2024 Europe & North Greater (im thousands of U.S. dollars) International America China Corporate* _Elimimations** Total Revenue Revenue from extemal customers 109,853 69,073 29,074 _ _
Slide 38: Reconciliation of Non-IFRS Financial Measures
Sensitivity: Internal RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Reconciliation of Free Cash Flow to Net Cash Flows used in Operating Activities (Unaudited) Three months ended September 30, Nine months ended September 30, (in thousands of U.S. dollars) 2024 2023 2024 2023 Net cash flows used in o
Slide 39: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Revenue, Adjusted EBITDA and EBITDA. Three months ended June 30, 2024 Europe & Nor Greater (Gn thousands of US. dollars) International __America China Coxporate*__Eliminations** Total Revenue Revenue from external customers 105,541 67,819 (28,835 _ _— 20
Slide 40: 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 41: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES “Three months ended December 31,2023, Europe & International ‘North America Greater China Corporntet Etiminaions** Tora! Revenue Revenne from extemal customers 105,620 65,900 32,601 = — 204,121 Intersegment revenue 2333 = - = (2333) = Total segment reven
Slide 42: 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 extemal customers 85,244 51,775 40.939 _ _ 177958 Intersegment revenue 12,934 2a = = (3,175) = Total segment revenue
Slide 43: Reconciliation of Non-IFRS Financial Measures
Sensitivity: Internal RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Europe & International North America Greater China Total revenue Europe & International North America Greater China Total revenue Europe & Intemational ‘North America Greater China ‘Total revenue Europe & Intemational North America