Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q1 2022 Earnings Presentation
31 slides from Oatly Group AB's earnings presentation, 2022
Slide 1: Oatly Q1 2022 Financial Presentation
‘THE ORIGINAL Ly! OATLY 1022 FINANCIAL PRESENTATION
Slide 2: 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 statements, including, wit
Slide 3: It's like milk but made for humans
It’s like milk but made for humans.
Slide 4: Market share and velocity notes
Notes: Nielsen only covers measured channels 1. In key markets of Sweden, Germany, the U.S. and the U.K. for the last 52 weeks ending week 12, 2022 in Sweden, ending week 13 2022 in Germany, March 26, 2022 in the US, and March 26, 2022 in the U.K. Calculated as Oatly growth in value sales over the a
Slide 5: Oatly at a glance: LTM Q1 2022
LTM Q1 2022 Revenue 2018 – LTM Q1’22 Revenue Growth CAGR(5) Planned Production Facilities by 2023 in 25+ markets Approx. Retail Doors(3) Approx. Foodservice locations(3) Product Categories Total Addressable Market Nearing the Tipping Point of Adoption (4) Notes: 1. Includes Coffee & Tea shops. 2. Ma
Slide 6: Category growth and market leadership
Source: Nielsen IQ, IRI, management projections, Tmall Database Notes: Nielsen only covers measured channels (~43% of total America revenue). 1. In key markets of Sweden, Germany, the U.S. and the U.K. for the last 52 weeks ending week 12, 2022 in Sweden, Netherlands, Austria and Switzerland, ending
Slide 7: Oat share of plant-based milk market
Inherent sustainable characteristics Flexible within the supply chain Widely accessible to a range of eaters % of total plant-based milk retail market (1) Oat Soy Almond Oat Dairy Alternatives YoY Growth(2) Source: Nielsen IQ, IRI. Notes: Sweden Nielsen data as of week 12, 2022; U.K. IRI data as of
Slide 8: Total plant-based market share
Total plant-based market share (1) 46% contributed by Oatly YoY 19% contributed by Oatly YoY 32% contributed by Oatly YoY of plant-based milk growth of plant-based milk growth of plant-based milk growth (3) (3) (3) Source: Nielsen IQ, IRI. Notes: U.K. IRI data as of March 26, 2022, Germany Nielsen d
Slide 9: Sweden market performance
Source: Company financials Notes: 1. As of March 31, 2022.
Slide 10: U.K. market performance
Based on largest oatmilk SKUs MAT (1) #1 selling SKU in PBM & Oatmilk (2) Source: Nielsen IQ, IRI Notes: (1) L12W represents the calculated average of the data for the 4-week rolling periods ending Jan 29, 2022, Feb 26, 2022 and Mar 26, 2022 in the UK. (2) Largest PBM and Oatmilk SKU based on absolu
Slide 11: Germany market performance
Based on largest oatmilk SKUs MAT (1) Barista market leadership Foodservice partnerships Frozen desserts launch #1 selling SKU in PBM & Oatmilk (2) ~ ’ Source: Nielsen IQ, IRI Notes: (1) L12W represents the calculated average of the data for the 4-week rolling periods ending Feb 6, 2022 and Mar 6, 2
Slide 12: EMEA: Significant International Expansion Opportunity
EMEA: SIGNIFICANT INTERNATIONAL EXPANSION OPPORTUNITY WITH EXPANDED PRODUCTION CAPACITY OATLY’S EMEA PRESENCE CURRENT KEY MARKETS CONSIST OF THE NORDICS, UK, GERMANY AND THE NETHERLANDS LIMITED PRESENCE IN BROADER EMEA, INCLUDING LARGE MARKETS SUCH AS FRANCE, ITALY AND SPAIN EXPECT INVESTMENTS IN EX
Slide 13: U.S. market performance
Source: Company financials, Nielsen Notes: 1. By market share of the oatmilk category in terms of retail sales value for the U.S. over the last 13 weeks ending March 26, 2022. Does not represent velocity position in each of the retailers listed. 2. As of March 31, 2022.
Slide 14: Continued QoQ growth of category-leading velocity
Continued QoQ growth of category-leading velocity Δ 54 p.p. Source: Nielsen IQ Notes: 1. By market share of the oatmilk category in terms of retail sales value for the U.S. over the last 13 weeks ending March 26, 2022. Does not represent velocity position in each of the retailers listed. 2. Data rep
Slide 15: China performance on Tmall
• Oatly is the #1 selling oatmilk on (2) • Maintained #1 position in plant- based drinks Source: Company financials Notes: 1. As of March 31, 2022. 2. On Tmall, from Tmall database as of March 31, 2022.
Slide 16: China lockdown impact on locations
• • • 17,000+ of our retail and foodservice locations have been closed in China due to lockdowns starting at the end of March
Slide 17: Q1 2022 consolidated results
Production volume(1) 90 121 % % Margin 29.9% 9.5% Margin (16.0%) (43.0%) Sales 92 118 volume(1) +19% (2) • Broad-based revenue growth across • Gross margin impacted by: • Adjusted EBITDA loss increased due • Continued to invest in capacity to all regions and channels – Positive impact from higher sh
Slide 18: Q1 2022 results by region
Production volume(1) 69 86 21 31 – 4 90 121 Sales volume(1) 57 +21% 69 21 +57% 33 14 +14% 16 92 +28% 118 +19% (2) +11% (3) +40% +15% (4) • Steady, consistent production in EMEA • All-time production high in Americas • Revenue growth significantly • Total revenue growth continued to in March impacted
Slide 19: Q1 2022 production output commentary
Q1 2022 Commentary • Increased our quarterly (Million litres of finished goods) production output by 34% vs. prior year, ending at 121ML COVID-19 related challenges • First quarter production output decreased by 17% sequentially due to a number of COVID-19 related factors • EMEA: Stable production i
Slide 20: Utilization rates and notes
Notes: 1. Utilization rates based on self-manufacturing. 2. These are not projections; they are goals / targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its
Slide 21: Year-over-year Q1 2022 gross margin bridge
YEAR-OVER-YEAR Q1 2022 GROSS MARGIN BRIDGE NEAR-TERM MARGINS IMPACTED BY INFLATIONARY ENVIRONMENT AND CARRYING FULL FIXED AND VARIABLE COST STRUCTURE OF THREE NEW FACILITIES DURING PRODUCTION RAMP-UP PHASE SHORT-TERM HIGHER SHARE UNDER- OF SELF- UTILIZATION DUE MANUFACTURING TO SUPPLY CHAIN 2.5% CHA
Slide 22: Production models and target mix
▪ Quickest and easiest option to market ▪ Oat base is transported via pipeline to ▪ In-house oat base manufacturing, mixing partners who execute the mixing and filling and filling in one location ▪ Higher costs from shipping and profit share process ▪ Flexibility to build value-added processes ▪ Oat
Slide 23: Total run-rate capacity by facility
Date of go-live Peterborough, U.K. = Established capacity = Capacity added in 2021 (Expansion in 2023/2024) = Near-term capacity expansions Maanshan, CN = Self-Manufacturing Ogden, U.S. = Hybrid (Year) = Expected expansion (Expansion in 2022) Asia III Millville, U.S. (Expansion TBD) Fort Worth, U.S.
Slide 24: Notes on goals and targets
Notes: 1. These are not projections; they are goals / targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with re
Slide 25: Key drivers of profitability in the medium-term
KEY DRIVERS OF PROFITABILITY IN THE MEDIUM-TERM INCREASING IN-HOUSE PRODUCTION THROUGH HYBRID AND END-TO-END SELF-MANUFACTURING MODELS LOCALIZATION OF PRODUCTION ENABLES US TO IMPROVE ECONOMICS AND IMPROVE SERVICE LEVELS OPERATING LEVERAGE FROM INCREASE IN SALES COUPLED WITH A LOWER INCREASE IN SG&A
Slide 26: Notes on goals and targets
Notes: 1. These are goals / targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions,
Slide 27: 2022 guidance
Notes: 1. Adjusted EBITDA margin is a non-IFRS measure. The Company cannot provide a reconciliation between of EBITDA guidance to the corresponding IFRS metric without unreasonable efforts, as we are unable to provide reconciling information. These items are not within Oatly’s control and may vary g
Slide 28: Growth strategy
Accelerate brand awareness and consumer trial Invest in global production capacity to capture demand Expand into new markets with proven, disciplined and thoughtful multi-channel strategy Drive category growth through distribution, velocity and market share gains in existing markets Roll out our exi
Slide 29: Appendix
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Slide 30: Adjusted EBITDA reconciliation
Three Months Ended (Unaudited) March 31, (in thousands of U.S. dollars) 2022 2021 Loss for the period attributable to shareholders of the parent (87,459) (32,383) Income tax (benefit)/expense (1,121) 1,948 Finance income and expenses, net (3,577) 1,920 Depreciation and amortization expense 10,731 3,
Slide 31: 2022 guidance assumptions
Notes: Management expectations set at the time of 2022 guidance on March 9, 2022.