Slide 1: Oatly 2021 Financial Presentation
‘THE ORIGINAL OATLY 2021 FINANCIAL PRESENTATION
Slide 2: Forward-looking statements
This presentation includes forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives fo
Slide 3: It's like milk but made for humans
It’s like milk but made for humans.
Slide 4: Q2 2021 Key Financial Highlights
Q2 2021 KEY FINANCIAL HIGHLIGHTS RECORD REVENUE AND PRODUCTION VOLUMES, WITH CONTINUED STRONG GROWTH ACROSS REGIONS ONLY LIMITED BY CAPACITY INCREASING PRODUCTION OUTPUT IN LINE WITH OUR PLANS — JUNE AND JULY STRONGEST CONSECUTIVE PRODUCTION MONTHS IN THE COMPANY’ S HISTORY SINGAPORE PLANT STARTED C
Slide 5: Oatly at a glance: revenue by region and channel
LTM Q2 2021 Revenue 2018 – Q2’21 Revenue CAGR (3) EMEA Americas Asia Planned Production Facilities by 2023 in 20+ markets Retail Doors(4) Foodservice locations(4) Food retail Foodservice(1) Other(2) Total Addressable Market Nearing the Product Categories Tipping Point of Adoption (5) Notes: 1. Inclu
Slide 6: Market share and velocity versus competitors
Source: Nielsen, IRI, management projections, Tmall Database Notes: Nielsen only covers measured channels (~35% 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 28, 2021 in Sweden, ending week 26 2021 in Germany, July 17, 2021 i
Slide 7: Key Distribution Wins
KEY DISTRIBUTION WINS Oo McDonalds, ASIA SWITZERLAND «cin A Ahold ( ) AMERICAS IRELAND sams club <> ASIA ASIA ASIA ! Walmart >.< ASIA T™ AMERICAS AMERICAS / ASIA YONGHUI SUPERSTORES Q2’21 EARNINGS PRESENTATION 6
Slide 8: Revenue and gross profit growth 2018 to LTM Q2 2021
(USD in millions) (USD in millions) ’18 - LTM 2018 – LTM Q2 2021 Q2’21 2018 – LTM Q2 2021 $528 CAGR: CAGR CAGR $421 $152 $129 $204 $67 $48 $118 Notes: % Margin 1. Revenue and gross profit for the year ended December 31, 2018 are management’s estimates that were derived from our audited Swedish conso
Slide 9: Revenue by region: Europe, United States, Greater China and Asia
56% of revenue in H1’21 26% of revenue in H1’21 18% of revenue in H1’21 15+ markets United States 5 core markets Mainland China, Hong Kong, Taiwan, Singapore, South Korea +55% (USD in millions) 309 (USD in millions) (USD in millions) CAGR 268 +155% +333% 155 CAGR CAGR 130 103 100 89 39 54 12 2 10 (4
Slide 10: Most plant-based milk consumers joined the category in the last 2 years
Q: When did you first purchase plant-based milk? Additional opportunity in foodservice Last 2 Years 3+ years 61% 63% Global dairy retail sales 71% 71% 69% Plant-based penetration of dairy retail sales globally is only ~3%, but rapidly growing (1) 39% 37% 29% 29% 31% c.60-70% of plant-based milk cons
Slide 11: Oat share of plant-based milk market
Inherent sustainable characteristics Flexible within the supply chain Widely accessible to a range of eaters Nutritional advantages % of total plant-based milk retail market (1) Oat Soy Almond Oat Dairy Alternatives 45% Oat surpassed Oat Oat surpassed almond Oat surpassed Oat almond and 43% Oat soy
Slide 12: Oatly's contribution to plant-based milk growth
Total plant-based market share (1) 60% 40% 50% 20% 30% 40% 30% 20% 10% 20% 10% 10% 0% 0% 0% Jan ‘18 July ‘21 Jan ‘18 July ‘21 Jan ‘18 July ‘21 51% of plant-based milk growth contributed by Oatly (3) 33% of plant-based milk growth Jan - 19 contributed by Oatly (3) 19% of plant-based milk growth contr
Slide 13: Products mirror the dairy portfolio
Our products mirror the dairy portfolio, from oatgurts, to frozen desserts, to a Barista Edition drink that’s a perfect pair for coffee
Slide 14: Proprietary production processes and patented elements
Leveraging proprietary production processes and Oatly over-indexes versus competitors as “being a key patented elements to convert fiber-rich oats brand that aligns with my values” into great tasting products Founded in the 1990s by food scientists on a Leading the industry and empowering people to
Slide 15: Products with nutritional profiles suited to human needs
We aim to make products with nutritional profiles that are best suited for human nutritional needs. We hold our food up to dairy lovers’ expectations on tastes so switching to plant- We strive to create a plant based product that based options doesn’t feel like a sacrifice. allows people to turn wha
Slide 16: Multifaceted innovation approach built on Swedish science
research & development team to create our core oatbase – members across the Local innovation the foundation of our globe(1) power tailors products products to local taste profiles and Built on consumer Process improves expectations years of Swedish science with stability and maintains more than file
Slide 17: Q2 2021 results: EMEA
Production volume(1) 74 106 % % Margin 32.3% 26.4% Margin (1.3%) (21.8%) Sales volume(1) 67 95 +53% (2) $146 $89 $95 $39 $31 $25 ($1) ($32) • Broad-based growth across all regions • Strong demand for our products has • Higher Adj. EBITDA loss due to • Continued to invest in capacity to and channels
Slide 18: Q2 2021 results: Americas and Asia
Production volume(1) 59 79 15 28 – – 74 106 Sales volume(1) 46 55 15 26 6 14 67 95 +53% (2) +32% $146 (3) +65% +149% $79 $95 $60 $41 (4) $25 $26 $11 • Growth limited by capacity and low • Growth in new and existing • Growth in new and existing foodservice, • Total revenue growth continued to custome
Slide 19: 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 MODELS LOCALIZATION OF PRODUCTION ALLOWING US TO IMPROVE ECONOMICS AND IMPROVE SERVICE LEVELS OPERATING LEVERAGE FROM RAPID INCREASE IN SALES COUPLED WITH A LOWER INCREASE IN SG&A SIGNIFICANT
Slide 20: Production models: co-packing, hybrid and self-manufacturing
Quickest and easiest option to market Oat base is transported via pipeline to partners In-house oat base manufacturing, mixing and who execute the mixing and filling process filling in one location Higher costs from shipping and profit share Lighter cash choice with more favorable margins
Slide 21: Production capacity footprint and expansion plans
Date of go-live Peterborough, U.K. = Established capacity = Capacity added in 2021 = Near-term capacity expansions Maanshan, CN = Self-Manufacturing Ogden, U.S. = Hybrid (Year) = Expected expansion (2022) Millville, Asia III (2022/2023) Fort Worth, U.S. U.S. Total expected capacity at Landskrona, SE
Slide 22: Monthly production volumes and commentary
Commentary (Million litres of finished goods) • July came in significantly better than June driven by the Vlissingen expansion and Ogden 45.7 ramp-up • Ogden performed much better in 40.1 July, with all lines now fully 35.5 installed, up more than 250% vs 33.3 previous month 30.9 – Ogden will contin
Slide 23: Expected capacity and capex by year
(Million litres of finished goods)(1) (USD in millions) Historic production volume 2021 2022 (1) 2021 2023 (1) ~1,475 • Vlissingen (NL) • Landskrona (SE) • Ogden (U.S.) • Peterborough (U.K.) Total expected capacity at the end of the year • Millville (U.S.) • Maanshan (CN) • Asia III • Ogden (U.S.) •
Slide 24: Revenue outlook
(USD in millions) > >$690 $421
Slide 25: Full-year guidance and notes
Notes: 1. Adjusted EBITDA margin is a non-IFRS measure. See the Appendix to this presentation for a reconciliation to the nearest 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 pr
Slide 26: Growth strategy
Accelerate brand awareness and consumer trial Invest in global production capacity to capture immense 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
Slide 27: Appendix
APPENDIX 5 DRINK MILK (Baaty festival sp / ppgg'2 EARNINGS PRESENTATION 26
Slide 28: Adjusted EBITDA reconciliation
Thee months ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands $) Loss for the period attributable to shareholders of the parent (59,064) (4,790) (91,447) (12,963) Income tax expense 264 420 2,212 772 Finance income and expenses, net 10,696 23 12,616 2,673 Depreciation and am