Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q4 2023 Earnings Presentation
45 slides from Oatly Group AB's earnings presentation, Feb 15, 2024
Slide 1: Q4 2023 Earnings Presentation
THE ORIGINAL Ly! 40. 2023 EARNINGS PRESENTATION
Slide 2: Today's Speakers
> L__TOBAY'S SPEAKERS J | | JEAN-CHRISTOPHE FLATIN, CEO MARIE-JOSE DAVID, CFO
Slide 3: Forward-Looking Statements
Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looki
Slide 4: CEO Update
Slide 5: 2023 Was a Pivotal Year of Recalibration and Stabilization
~ Ls” [a 2023 WAS A PIVOTAL YEAR OF RECALIBRATION AND STABILIZATION - fully funded our business plan by raising $465mm - transitioned leadership - took actions to right-size our sgka structure - doubled down on our asset-light supply chain strategy - increased focus on most-profitable customers, cha
Slide 6: In 2023, We Made Good Progress On Our Plan
IN 2023, WE MADE GOOD PROGRESS ON OUR PLAN TO DRIVE PROFITABLE GROWTH PREPARE FOR GROWTH INCREASE SIMPLICITY DRIVE CONSISTENT / AGILITY PROFITABLE GROWTH CLEAR STRATEGIES ON CONSISTENT GEOGRAPHIES, REDUCED EMEA CHANNELS, AND MANAGEMENT LAYERS Y i vcinvesene PORTFOLIO STABILIZED SUPPLY; INCREASED BRA
Slide 7: Our Actions Drove Solid Improvement in 2023
OUR ACTIONS DROVE SOLID IMPROVEMENT IN 2023 ADJ. EBITDA! $(50) 5(53) Ql Q2 Q3 Q4
Slide 8: 2024 Priority: Drive Toward Profitable Growth
2024 PRIORITY: DRIVE TOWARD PROFITABLE GROWTH BRING THE CONTINUE OUR CONTINUED FOCUS ON OATLY MAGIC TO CALIBRATION OF EXECUTIONAL MORE PEOPLE RESOURCES EXCELLENCE
Slide 9: We Will Continue To Focus On Our Long-Term Opportunity
WE WILL CONTINUE TO FOCUS ON OUR LONG-TERM OPPORTUNITY AND BALANCE PURPOSE AND PERFORMANCE MAKE IT EASY FOR PEOPLE TO EAT BETTER AND LIVE HEALTHIER LIVES WITHOUT RECKLESSLY TAXING THE PLANET'S RESOURCES Additional * | foodservice 2 | opportunity $658BN Global dairy retail sales 35-407 19% 11% 2022 2
Slide 10: EMEA
Nae : THE ORIGINE ~
Slide 11: EMEA Finished 2023 With a Solid Q4
EMEA FINISHED 2023 WITH A SOLID Q4 Impacted by price 15.5% 15.4% 15.9% 10.7% (3.0]z FY 2022 FY 2023 FY 2022 FY 2023 a4 a ation for a reconciliation te th:
Slide 12: EMEA Has Continued To Outpace The Category's Strong Growth Rate
EMEA HAS CONTINUED TO OUTPACE THE CATEGORY’S STRONG GROWTH RATE EMEA Y/Y RETAIL TAKEAWAY VALUE SHARE OF NON-DAIRY MILK? SALES GROWTH IN Q4 2023' |Last 12 months Last 6 months “Last 3 months REACHED #1 PLANT-BASED MILK IN H2 ux 45.0% 45.5% IN GERMANY, AUSTRIA, SWITZERLAND, AND THE NETHERLANDS 27.66 2
Slide 13: Already Gained Significant Presence in Specialty Coffee
1,330 400 ALREADY GAINED x SIGNIFICANT Serving PRESENCE IN wut = SPECIALTY COFFEE 400 SPECIALTY CAFES ‘ 146 SPECIALTY CAFES 2 SPECIALTY CAFES PORTU
Slide 14: In 2024, EMEA Will Strengthen the Coffee Portfolio
IN 2024, EMEA WILL STRENGTHEN THE COFFEE PORTFOLIO WITH NEW VARIETIES AND PACK SIZES LIGHT-ROASTED COFFEE
Slide 15: In 2024, EMEA Will Continue "Go Blue" Strategy
eee — —————— ee — — ——— IN 2024, EMEA WILL CONTINUE “GO BLUE” STRATEGY TO EXPAND CONSUMER USAGE OUTSIDE COFFEE OCCASIONS
Slide 16: In 2024, EMEA Will Launch New and Improved Gurts
IN 2024, EMEA WILL LAUNCH @ S NEW AND IMPROVED GURTS O > Groundbreaking recipe with live yoghurt bacteria
Slide 17: In 2023, Americas Drove Significant Profit Improvements
IN 2023, AMERICAS DROVE SIGNIFICANT PROFIT IMPROVEMENTS VIA MARGIN MIX AND COST SAVINGS TOP-LINE TREND IMPACTED BY SHIFT AWAY FROM LOW-MARGIN VOLUME REVENUE Y/Y GROWTH! 36% 19% ADJ. EBITDA' STEADILY IMPROVED THROUGH THE YEAR ADJ. EBITDA! (4)% 1023 2023 3Q23 4023 $(10) 1Q23 $(2) $(9) 2Q23 3Q23 4023
Slide 18: Americas Has Gained Retail Share Driven By a Strong Distribution Build
AMERICAS HAS GAINED RETAIL SHARE DRIVEN BY A STRONG DISTRIBUTION BUILD VALUE SHARE OF CHILLED OATMILK CATEGORY OATLY CHILLED OATMILK 7 ACV (PERIODS ENDING DEC. 30, 2023) (ROLLING 1-WEEK PERIODS) 43.6 25.2% 24.7% 24.0% Last 52 weeks Last 12 weeks Last 4 weeks Jan 21, £23 Jan 13, ‘24
Slide 19: Products
PRODUCTS
Slide 20: Diversification in Americas' Foodservice Continued To Pay Off
DIVERSIFICATION IN AMERICAS’ FOODSERVICE CONTINUED TO PAY OFF IN 04 AMERICAS AMERICAS FOODSERVICE REVENUE FOODSERVICE REVENUE EXCLUDING LARGEST CUSTOMER’ +45%Y/Y : +2592 Y/Y 4Q22 4923 4Q22 4Q23
Slide 21: Americas' Co-Packer Consolidation Drove Solid Savings
AMERICAS’ CO-PACKER CONSOLIDATION DROVE SOLID SAVINGS THROUGHOUT 2023; MORE OPPORTUNITY REMAINS AMERICAS TOTAL COGS PER LITER 12% REDUCTION FROM Q1 TO 04 1023 2023 3Q23 4023
Slide 22: In 2024, Americas Will Bring the Oatly Magic to More People
IN 2024, AMERICAS WILL BRING THE OATLY MAGIC TO MORE PEOPLE Gym and Juice! MiLB Partnership!
Slide 23: In 2023, Asia Drove Significant Profit Improvements
IN 2023, ASIA DROVE SIGNIFICANT PROFIT IMPROVEMENTS VIA MARGIN MIX AND COST SAVINGS CONSTANT CURRENCY REVENUE Y/Y GROWTH! | (11)% (18)% (28)% 1Q23 2023 3Q23 4Q23 ADJ. EBITDA’ 1023 2Q23 3Q23 4023
Slide 24: Asia Team Has Moved Quickly To Increase Efficiency
ASIA TEAM HAS MOVED QUICKLY TO INCREASE EFFICIENCY % OF ASIA’S VOLUME PRODUCED AT >30% REDUCTION FROM Q1 TO 04 EACH MANUFACTURING PLANT 25% 83% J vA MA’ANSHAN / (END TO END) 1923 (Pre-Reset) 4923 1923 2023 3023 4023
Slide 25: Next Phase of Asia's Reset
NEXT PHASE OF ASIA’S RESET PLAN Maintain focus on foodservice channel Optimize product offering For foodservice customers
Slide 26: Financial Highlights
=a w AMEAD EAT UKE A VEGAN. - ] FINANCIAL HIGHLIGHTS ="
Slide 27: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW 4Q 2023 Y/Y Revenue Growth +4.6% Y/Y Constant Currency Revenue Growth? +2.5% Gross Margin 23.4% change vs prior year +750 bps change vs prior quarter +600 bps Adj. EBITDA? (19.2) change vs prior year +541,2 change vs prior quarter +$16.8
Slide 28: 2023 Revenue Bridge
40 2023 REVENUE BRIDGE Revenue (USD in millions) % Year-over-year growth +4.6% Revenue Growth . 40.5 +201% $195.1 +2.0% F065 $204.1 \ ) Y +2.5% Constant Currency Revenue Grouth'2) Q4 2022 Revenue YoY Volume Growth (1) YoY Constant Currency FX Impact Q4 2023 Revenue Price/Mix Growth(2) Notes: ay not
Slide 29: 2023 Segment-Level Revenue Bridge
40 2023 SEGMENT-LEVEL REVENUE BRIDGE % YEAR-OVER-YEAR GROWTH Constant Constant Currency Currency") Revenue Volume Price / Mix Growth FX Impact Growth EMEA 0.5% 11.3% 11.8% 5.1% 16.9% Americas 9.2% (6.8)% 2.4% - 2.4% Asia (3.3)% (14.7)% (18.0)% (0.9)% (18.9)% Total 2.0% 0.5% 2.5% 2.1% 4.6% Note: (2)
Slide 30: Quarter-Over-Quarter 4Q 2023 Gross Margin Bridge
QUARTER-OVER-QUARTER 4Q 2023 GROSS MARGIN BRIDGE 49% 0.6% 2.7% 0a 23.4% | « es0 30.2023 ASIA STRATEGY RESET EMEA & AMERICAS (MIX EFFECT IMPROVING PRODUCTION OTHER, NET 40.2023 PRICE INCREASES, MODEL AND CO-PACKER NET OF TRADE SPEND CONSOLIDATION, NET OF INFLATION 30
Slide 31: Segment-Level Profit
Notes: USO in 1, Ad jus millions EBITOA and is SEGMENT-LEVEL PROFIT ADJ. EBITDA! $ in millions EMEA Americas Asia Corporate Total S$ Change $ Change Q4 vs PY 2023 vs PY $16.8 + $15.0 $43.0 + $53.2 (1.8) + 2.9 (28.1) + 34,7 (8.0) + 13.0 (64.6) + 10.6 (26.2) + 10.4 (107.8) + 11.8 (19.2) + $41.2 $(157.
Slide 32: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW STRONG LIQUIDITY POSITION IMPROVING FREE CASH FLOW AVAILABLE LIQUIDITY FREE CASH FLOW' (smm) (SMM) $ 454 UNDRAWN BANK FACILITIES 205 $31) sss) 49) CASH & EQUIVALENTS $(99) af23) 60223) «A323 = a'23 1.free Cash Flow is a non-IFRS measure, See the Appendix to this presentatio
Slide 33: 2024 Outlook
ADJ. EBITDA? CAPEX 2024 OUTLOOK GUIDANCE ASSUMPTIONS CONSTANT CURRENCY GROWTH OF <100 BPS OF FX HEADWIND: +5470 +10% H2 STRONGER GROWTH THAN Hi GROSS MARGIN EXPANSION PRIMARILY $(35) MM TO $(60) MM DRIVEN BY ABSORPTION AND EASING INPUT COSTS BELOW $75 MILLION 33
Slide 34: Appendix
APPENDIX
Slide 35: Revenue Split by Channel and Region
~~ By REVENUE SPLIT BY CHANNEL - 40 2023 REVENUE SPLIT BY REGION - 40 2023 4% 16% 38% 52% 59% 32% Food retail Foodservice!) Other?) {emea Americas | Asia 35
Slide 36: Hi Food re
Hi Food re tail Foodservi ice() |_| Other(2) 36
Slide 37: Year-Over-Year 2023 Gross Margin Bridge
YEAR-OVER-YEAR 40 2023 GROSS MARGIN BRIDGE 67% Cee 15.9% 02 oy oy (6.87) (0.1%) av22 FX IMPACT PRICING ‘TRADE PROMOTION & INFLATIONARY PRODUCTION & SUPPLY 0423 ACTIONS: MIX EFFECT PRESSURES CHAIN IMPROVEMENT
Slide 38: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Revenue, Adjusted EBITDA and EBITDA Three months ended December 31, 2023, Wuaudited) {Gu Mousands of US. dollars) EMEA Americas, _ Asia Corporate*Elimina Total Revenue Reveaue fiom external customers 65,900 33,020 - — 204,121 Intersegment revenue — 1,852
Slide 39: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON- Revenue, Adjusted EBITDA and EBITDA Three months ended September 30, 2023 FRS FINANCIAL MEASURES (in thousands of U.S. dollars) EMEA Americas Asia Corporate*_—_Fliminations** Total Revenue Revenue from external customers 101,762 58,491 27,342 — — 187,595 Intersegment revenue 3
Slide 40: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON- Revenue, Adjusted E] EBITDA Three months ended June 30, 2023 A and FRS FINANCIAL MEASURES (in thousands of U.S. dollars) EMEA Americas Asia Corporate*__Eliminations** Total Revenue Revenue from external customers 96,989 61,832 37,166 _ = 195,987 Intersegment revenue 359 - 1,69
Slide 41: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON- FRS FINANCIAL MEASURES Revenue, Adjusted and EBITDA ‘Three months ended March 31, 2023 (in thousands of U.S. dollars) EMEA Americas Asia Corporate* Eliminations** Total Revenue Revenue from external customers 98.216 64.041 33,388 _ _ 195,645 Intersegment revenue 851 _ 1,440 _
Slide 42: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Twelve months ended December 31,2023 Woaaudited) {Gia thousands of U.S. dollars) EMEA _Americas Asia Corporate” Eliminations**__Total Revenue Revenue from external customers 402,168 250,264 130,916 — — 783,348 Intersegment revenue 1.725 = 7317 - (9,042)
Slide 43: Reconciliation of Non-IFRS Financial Measures
EMEA Americas Asia Total revenue EMEA Americas Asia Total revenue EMEA Americas Asia Total revenue dollars) RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Three months ended March 31 xn Foreign Ta 2023 2022 exchange stant reperted “Spet_corvency 98,216 90,483 98,216 7,495 105,711 64,041 47,017 64,041
Slide 44: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Revenue (in thousands of U.S. dollars) EMEA Americas Asia Total revenue Twelve Months Ended ch Ch Decenber 31, S Ginn SEITE Foreign In Constant As In constant As 2022 2021 exchange constant Volume currency reported currency reported impact currency price
Slide 45: Reconciliation of Non-IFRS Financial Measures
‘Three months ended December 31, RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Twelve months ended December 31, (in thousands of U.S. dollars) 2023 2022 2023 2022 Net cash flows used in operating activities (14,147) (53,722) (165,626) (268,946) Capital expenditures (17,062) GL813) (69,045) (206,165