Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q1 2024 Earnings Presentation
43 slides from Oatly Group AB's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 Earnings Presentation
THE ORIGINAL Ly! 10 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: CEO Update
Slide 5: We are making good progress toward achieving profitable growth
LI | WE ARE MAKING GOOD PROGRESS TOWARD ACHIEVING PROFITABLE GROWTH BBN 2024 1s OFF TO A GOOD START - We are seeing the benefits of the actions taken over the past ~18 months - Ql results helped by timing of certain SG&A expenses BA ee vverATING FULL-VEAR GUIDANCE! - constant currency revenue growth
Slide 6: Continued progress toward profitable growth
CONTINUED PROGRESS TOWARD PROFITABLE GROWTH ADJ. EBITDA? (IN SMM) Y/Y VOLUME GROWTH GROSS MARGIN 1024 | EUROPE & INT'L A N AMERICA sian GREATER CHINA. = (15Y% | 3023 4023 1024 ' Full 1023-2023. 3023.) 4023. 1024 2022 1023 2023 3023 4023 1024 Year Quarterly 2022 ' Range * nciListion to the nasrast IF
Slide 7: 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 8: Good progress on 2024 focus areas
GOOD PROGRESS ON 2024 FOCUS AREAS BRING THE OATLY MAGIC TO MORE PEOPLE T'S LiKE | MILK BUT MADE FoR HUMANS. CONTINUE OUR CALIBRATION OF RESOURCES $85 million SG&A cost savings program remains on track Previously~announced exits of manufacturing facilities in US and Europe remain on track Continuing
Slide 9: Europe & International
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Slide 10: Solid Q1 performance by Europe & International
SOLID Q1 PERFORMANCE BY EUROPE & INTERNATIONAL CONTINUED ADJ. EBITDA’ CONTINUED SOLID REVENUE GROWTH IMPROVEMENTS IN Q1 ADJ. EBITDA’ CONSTANT CURRENCY REVENUE! Y/Y GROWTH $15 $ll $8 3Q23
Slide 11: Continued retail strength in Europe & International
CONTINUED RETAIL STRENGTH IN EUROPE & INTERNATIONAL TOTAL EUROPE RETAIL TAKEAWAY Y/Y SALES GROWTH! VALUE SHARE OF NON-DAIRY MILK? Of Plant-Based Qat Drinks Qatly Milk Last 12 months Last 6 months Last 3 months 44.8% 45 ,0% 27.6% 28.42% 27.3% 6 26.6 ose 26038 6 6% Germany Sweden The Netherlands (2) C
Slide 12: Continued foodservice strength in Europe & International
CONTINUED FOODSERVICE STRENGTH IN EUROPE & INTERNATIONAL CONTINUING TO GROW OUR FOODSERVICE CUSTOMER BASE STRONG REVENUE GROWTH +207 Y/Y Qi FOODSERVICE NET REVENUE GROWTH
Slide 13: Continued success in new markets
CONTINUED SUCCESS IN NEW MARKETS TOTAL NEW MARKETS! VOLUME (MILLIONS OF LITERS) +297 VOLUME GROWTH Compared to Ql 2023, added Va ~2mm liters of volume, comparable to the total size of our Austria business Y Combined, represent 12% of total-segment volume in Ql 1923 2023 3023 4023 New European Market
Slide 14: Includes volume from Original/Enriched, Full Fat/Deluxe, Low Fat/Skinny, Semi Fat, and No Sugar SKUs
(1) Includes volume from Original/Enriched, Full Fat/Deluxe, Low Fat/Skinny, Semi Fat, and No Sugar SKUs 14
Slide 15: FPO
FPO 15 Note: Packaging subject to change
Slide 16: New products have hit shelves across Europe
NEW PRODUCTS HAVE HIT SHELVES ACROSS EUROPE ao) LN Se UGAR
Slide 17: ($0.4) 5% ($3) 2% ($8) (4)% 3Q23 4Q23 1Q24 3Q23 4Q23 1Q24
($0.4) 5% ($3) 2% ($8) (4)% 3Q23 4Q23 1Q24 3Q23 4Q23 1Q24 17
Slide 18: 20 bps 160 bps 200 bps
Last 52 weeks 20 bps Last 12 weeks 160 bps Last 4 weeks 200 bps Chilled Plant-Based Chilled Oat Milk Oatly Chilled Oat Total Oatly Milk Milk 18
Slide 19: While still early, new products are off to a good start
WHILE STILL EARLY, NEW PRODUCTS ARE OFF TO A GOOD START OAT MILKS CREAMERS
Slide 20: Good progress in North America's foodservice
GOOD PROGRESS IN NORTH AMERICA’S FOODSERVICE NORTH AMERICA FOODSERVICE REVENUE APPROXIMATELY FLAT Y/Y IN Q1 35% FOODSERVICE REVENUE GROWTH, EXCLUDING LARGEST CUSTOMER' WE HAVE COME TO A MUTUALLY-BENEFICIAL AGREEMENT TO NEW TERMS WITH LARGEST CUSTOMER
Slide 21: Our bold, strategic actions are driving significant benefits in Greater China
OUR BOLD, STRATEGIC ACTIONS ARE DRIVING SIGNIFICANT BENEFITS IN GREATER CHINA CONTINUED IMPROVEMENT IN ADJ. EBITDA’ DRIVEN BY MIX AND COST SAVINGS CONTINUED IMPACTED OF INTENTIONAL, STRATEGIC SHIFT AWAY FROM LOW-MARGIN VOLUME CONSTANT CURRENCY REVENUE Y/Y GROWTH! (13)% ADJ. EBITDA! a = $(3) $(5)
Slide 22: Greater China
GREATER CHINA » » » New limited-time offer at China’s largest coffee chain Recently launched value-priced product with several customers Consumer environment remains challenging; we will remain disciplined 2
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 24: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW 1Q 2024 Y/Y Revenue Growth +1,8% Y/Y Constant Currency Revenue Growth! +1.2% Gross Margin 27.1% change vs prior year +970 bps Adj. EBITDA? $(13.2) change vs prior year +$36.7
Slide 25: 2024 Revenue Bridge
$195.6 Q1 2023 Revenue 10 2024 REVENUE BRIDGE % YEAR-OVER-YEAR GROWTH +3.1% +0.6% +1.2% Constant Currency Revenue Growth(2) YoY Volume Growth’ YoY Constant Currency Price/Mix Growth’ FX Impact aras +187 REVENUE GROWTH Q1 2024 Revenue 28
Slide 26: 2024 Segment-Level Revenue Bridge
10 2024 SEGMENT-LEVEL REVENUE BRIDGE % YEAR-OVER-YEAR GROWTH Constant Constant Revenue Currency Currency") Volume Price / Mix Growth FX Impact Growth Europe & Int’l 4.1% 3.6% 7.7% 2.2% 9,9% North America 11.4% (6.8)% 4.6% - 4.6% Greater China (15.8)% (11.0)% (26.8)% (3.2)% (30.0)% Total 3.1% (1.9)%
Slide 27: Year-over-Year 2024 Gross Margin Bridge
YEAR-OVER-YEAR 10 2024 GROSS MARGIN BRIDGE 75% Pe (0.2) 17.4% ss ar23 ABSORPTION & NET PRICING AND FX INFLATION ar24 SUPPLY CHAIN PRODUCT MIX IMPROVEMENTS
Slide 28: Segment-Level Profit
SEGMENT-LEVEL PROFIT ADJ. EBITDA! § in millions Ql 2024 S$ Change vs PY Europe & International $14.5 + $7.3 North America (0.4) + 9,9 Greater China (3.4) + 13.9 Corporate (23.9) + 5,6 Total $(13.2) + $36.7
Slide 29: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW ] CASH FLOW REMAINS ON TRACK WITH 1 FREE CASH Flows $(48) BUSINESS PLAN gous | 1 ($13) (64) $14 $209 & LIQUIDITY REMAINS STRONG @ 401MM 1) (6) 69) #] $209MM OF CASH + $192MM UNDRAWN CREDIT FACILITIES PAYABLES TIMING, INVENTORY PHASING PLANT EXIT COSTS STARTING TO FLOW THROU
Slide 30: Reiterating 2024 Outlook
REITERATING 2024 OUTLOOK REVENUE? CONSTANT CURRENCY GROWTH OF +57 TO +107 ADJ. EBITDA $(35) MM TO $(60) MM CAPEX BELOW $75 MILLION wot These are goals / targets and are foruard-locking, subject to significant business, econonicy reguletory and competitive uncertainties and contingencles, many of whi
Slide 31: Appendix
APPENDIX
Slide 32: Revenue Split by Channel and Region - Q1 2024
~~ LA REVENUE SPLIT BY CHANNEL - 10 2024 REVENUE SPLIT BY REGION) - 10 2024 3% 11h 32% 34% 65% Food retail Foodservice) Other?) I Europe & Internationel North America Hi Greater China 32
Slide 33: Revenue Split by Channel - Q1 2024
“REVENUE SPLIT BY CHANNEL-10.2024 9 EUROPE & INTERNATIONAL NORTH AMERICA | GREATERCHINA 1% 3% 17% 13% 43% D 54% 70% ————-REVENUE SUMMARY 18% 82% Hi Food retail Foodservice() | Other(2) 33
Slide 34: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Three months ended March 31, $ Change % Change p In i Se comets Constant 2024 2023 . constant m connant Volume currency reported reported currency rene, currency price/mix Europe & International 110,407 100,496 110,407 2,186 108,221 9.9% 7.7% 4.1% 3.6% N
Slide 35: 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 36: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES (Unaudited) (in thousands of U.S. dollars) Net cash flows used in operating activities Capital expenditures Free Cash Flow Three months ended March 31, 2024 2023 (39,078) (71,212) (6.194) (28,122 (45,272) (09,334) 36
Slide 37: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Three months ended December 31, 2023 Europe & International North America Greater China Corporate Eliminations** Total Revenue Revenue from external customers 105.620 65.900 32.601 —_ —_ 204.121 Intersegment revenue 2,333 — — — 333) — Total segment reve
Slide 38: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Three months ended September 30,2028 Europe @ International North America Greater China Corporate Eliminations** Total Revenue Revenue from external customers 103,526 58.491 25,578 — — 187,595 Intersegment reveme 3,717 - 59 = 6.776) = ‘Total segment rev
Slide 39: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES “Three months ended March 31, 2023 Europe & International ‘North America Greater China Corporate* Eliminations** Revenue Revenue fiom extemal customers 100.496 64,041 31.108 _ — 195.645 Intersegment revenue 10.484 _ _ _ (10.484) _ Total segment revenue 1
Slide 40: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Three months ended December 31, 2022 Europe & International Greater China Corporate Eliminations** Total Revenue Revenue from external customers 92.663 38,019 _ — 195.068, Intersegment revenue 9,807 _ 2 _ (9.859) _ Total segment revenue 102,470 64,386 3
Slide 41: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES ‘Three months ended June $0, 2022 Europe & International ‘North America Greater China Corporate* Eliminations** Toral Revenue Revenue from extemal customers 95,244 51,775 40,939 _ _ 177,958 Intersegment revenue 12.934 pa = = (13,175) = Total segment reve
Slide 42: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Europe & Intemational ‘North America Greater China Total revenue Europe & International ‘North America Greater China Total revenue Europe & Intemational North America Greater China Total revenue Europe & International ‘Nomth America Greater China Total r
Slide 43: 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) 31,813) (69,045) (206,16