Slide 1: Q3 2022 Earnings Presentation
THE ORIGINAL Ly! 30 2022 EARNINGS PRESENTATION
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation contains forverd-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Any express or implied statements contained in this presentation thet are not statements of historical fact may be deened to be forverd=locking statement
Slide 3: It's like milk but made for humans
It’s like milk but made for humans.
Slide 4: Agenda and presenters
TONI PETERSSON, CEO Introduction Strategic Actions Growth Opportunity Regional Update Financials Guidance TONI PETERSSON, CEO CHRISTIAN HANKE, CFO JEAN-CHRISTOPHE FLATIN, GLOBAL PRESIDENT DANIEL ORDONEZ, COO Q&A Q3°22 EARNINGS PRESENTATION 4
Slide 5: Strategic decisions with immediate action items and three key goals
WE HAVE MADE STRATEGIC DECISIONS WITH IMMEDIATE ACTION ITEMS AND THREE KEY GOALS PREPARE FOR INCREASE CONTINUED HIGH SIMPLICITY /AGILITY GROWTH OF THE ORGANIZATION EXPECT TO BE ADJUSTED EBITDA POSITIVE EXITING 40 2023 Q3°22 EARNINGS PRESENTATION 5
Slide 6: Our reset plan involves two fundamental streams
OUR RESET PLAN INVOLVES TWO FUNDAMENTAL STREAMS FOCUSING OUR INVESTMENTS IN OUR PROPRIETARY OATBASE TECHNOLOGY, WHILE REDUCING CAPITAL INTENSITY ADJUSTING FIXED COST BASE GLOBALLY FOR MORE BALANCED GROWTH AND PROFITABILITY EQUATION TO START, EXECUTING AN OVERHEAD AND HEADCOUNT REDUCTION RELATED TO T
Slide 7: Growth remains a top priority
GROWTH REMAINS A TOP PRIORITY STRATEGIC ACTIONS ARE EXPECTED TO STRENGTHEN OUR POSITION ENTERING 2023 AND BEYOND ~$631BN TOTAL ADDRESSABLE GLOBAL OAT CONTINUES TO BE A KEY GROWTH OATLY HAS A LEADING POSITION DAIRY RETAIL MARKET OPPORTUNITY DRIVER WITHIN PLANT-BASED MILK®) ACROSS ALL ITS KEY MARKETS
Slide 8: Converting dairy users into Oatly consumers
CONVERTING DAIRY USERS INTO OATLY CONSUMERS 1. Increase brand reach and awareness 2 Pioneer new product innovation Driving asset-light production capacity 3 expansion to support demand 4 Expand our presence across channels 5 Enter new markets Q3°22 EARNINGS PRESENTATION 8
Slide 9: Regional Highlights
REGIONAL HIGHLIGHTS
Slide 10: Revenue +7%, or +17% in constant currency
Revenue +7%, or +17% in constant currency Volume growth across regions #1 selling oatmilk SKU and highest velocities across key markets(!) Successful rollout of new product launches Continued channel expansion Notes: Melson only covers seasured channels 1 "Velocity (rate of sales) based on top selli
Slide 11: EMEA: Strong performance across markets
EMEA: STRONG PERFORMANCE ACROSS MARKETS DEMONSTRATING THE RESILIENCE OF OUR BRAND Ps nersaus VELOCITY LEADERSHIP IN RETAIL (uso in millions) VELOCITY: UNITS/STORE/WEEK (3)(4) % Year-over-year growth Based on largest oatmilk SKUs MAT Sales vom oe - @ Constant currency GERMANY revenue growth(=) +11% 2
Slide 12: EMEA: Driving growth in existing markets
EMEA: DRIVING GROWTH IN EXISTING MARKETS WITH SIGNIFICANT INTERNATIONAL EXPANSION OPPORTUNITY LAUNCHED NEW SKU THAT IS ADDING THE DISTRIBUTION EXPANSION ACROSS MOST VALUE TO THE CATEGORY CHANNELS (SELECT EXAMPLES) PLANET ORGANIC iL CHILLED BARISTA [_ N ER omit, SKUIN } JET. Net THE NON-DAIRY, yee (0
Slide 13: Americas: Strong demand supporting growth
AMERICAS: STRONG DEMAND SUPPORTING GROWTH, WITH SIGNIFICANT UPSIDE TO BE UNLOCKED #1 FASTEST-TURNING BRAND IN THE TOTAL | mersaues | DAIRY AND PLANT-BASED MILK CATEGORIES @ GROWTH OPPORTUNITIES (uso in miiiions) VELOCITY: USD/STORE/ITEM/uEEK (3) : 3 ¢ lo: & Year-over-year growth Based on brands with
Slide 14: Americas: Increasing supply key to future growth
AMERICAS: INCREASING SUPPLY CONTINUES TO BE THE KEY TO DRIVE FUTURE GROWTH Lower production in 30 2022 than previously anticipated driven by technical issues, which impacted production performance and output Production output is expected to increase in 4Q 2022 “ OGDEN, UT fe rs cif é MILLVILLE, NJ *
Slide 15: Asia: Resilient performance in COVID-19 environment
ASIA: RESILIENT PERFORMANCE IN A COVID-19 CONSTRAINED ENVIRONMENT CONTINUING TO ADAPT IN A COVID-19 IMPACTED ENVIRONMENT, EXPANDING PRESENCE ACROSS RETAIL AND ECOMMERCE (OTHER) (usd in millions) %& Year-over-year growth vere? = a7) (438%) 23) 10°22 20°22 30°22 11g sok | oa 13h | Retail Other(4) Cons
Slide 16: Asia: Significant growth opportunities
ASIA: SIGNIFICANT GROWTH OPPORTUNITIES DRIVEN BY STRONG BRAND POSITIONING, INNOVATION AND INCREASING LOCAL SUPPLY STRONG BRAND WITH EXPANDING CONTINUE TO SHIFT PRODUCTION TO GROWTH OPPORTUNITIES DISTRIBUTION AND NEW PRODUCT LAUNCHES MAANSHAN AND SINGAPORE Product portfolio expansion umes sold based
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS f Pt
Slide 18: 2022 revenue growth impacted by FX movements
30 2022 REVENUE GROWTH IMPACTED BY FX MOVEMENTS Revenue (USD in millions) % Year-over-year growth {J emea YoY Sales YoY sales volumes +15% volumes +7h growth (1) growth (2) +17% +7h FX $29 $200 impact = - | 171 $ ($17) $97 (411% $87 en | (6%) $49 3Q21 YoY constant 3Q22 FX impact 3Q22 3Q21 3Q22 3Q21
Slide 19: Production and sales volume, gross margin
Production volume(1) 131 124 % Margin 26.2% 2.7% Sales 110 126 volume(1) +17% +7% • • • •
Slide 20: Quarter-over-quarter 2022 gross margin bridge
QUARTER-OVER-QUARTER 30 2022 GROSS MARGIN BRIDGE DECREASE IN GROSS MARGINS IMPACTED BY INFLATION, CONTINUED PRODUCTION UNDER-ABSORPTION AND RELATED CHARGES LINKED TO MACRO-ECONOMIC ENVIRONMENT, PARTIALLY OFFSET BY PRICE INCREASES 3.9% (43% (112) 27% “ (oss 7 PRICING INFLATIONARY CONTINUED COVID-19 E
Slide 21: 2022 Financials Overview
30 2022 FINANCIALS OVERVIEW ADJ. EBITDA a Sa 8 ws on $171 ($27) $83 3Q 2021 3Q 2022 9M 2021 9M 2022 * Adjusted EBITOA loss increased due to: * Continued to invest in capacity to meet the demand - Lower gross profit of 539.9 million ° i an *Wear-term capex savings due to phasing of production - Highe
Slide 22: 2022 Revenue Guidance
2022 REVENUE GUIDANCE”) AMERICAS (Usb in millions) PRODUCTION CHALLENGES AT OGDEN TRANSLATION Reported $800- $830 aa No ee ASIA IMPACT DUE TO SUPPLY IN THE REGION IMPACT OF CONTINUED YoY Growth COVID-19 RESTRICTIONS FX MOVEMENTS 49% - 12% SINCE 20°22 . ($53) ~ ($58) aan $700- $720 ($32) - ($37) ($15
Slide 23: Updated 2022 Guidance
UPDATED 2022 GUIDANCE®™ CONSTANT CURRENCY BASED ON 2021 FX RATES REVENUE) $700 - $720 MILLION $755 - $775 MILLION 94-124 YOY GROWTH 17% 20% YOY GROWTH CAPITAL EXPENDITURES $220 - $240 MILLION RUN-RATE CAPACITY AT ~900 MILLION LITRES THE END OF THE YEAR OF FINISHED GOODS ‘ 4 a FX rates updated(?) 03°
Slide 24: Path to Profitability
PATH TO PROFITABILITY Expand our distribution footprint with new geographies and within existing channels Improve gross margin Leverage our improved cost structure with the organizational changes KEY DRIVERS OF GROSS MARGIN EXPANSION Continued pricing actions to combat COGS inflation Orive steady pr
Slide 25: Appendix
APPENDIX
Slide 26: Sales volume and revenue growth by region
Sales volume(1) 63 +7% 67 30 +17% 36 17 +38% 23 110 +15% 126 Constant currency revenue growth(5) +11% +23% +17% Reported revenue (2) growth (5%) +23% +16% +7% (3) (4) • • • • • • • • • •
Slide 27: Revenue split by channel and by region
~ LA REVENUE SPLIT BY CHANNEL - 30 2022 REVENUE SPLIT BY REGION ®) - 30 2022 6% 36% 58% Food retail _ Foodservice‘) Other'?) {emea Americas | Asia Q3°22 EARNINGS PRESENTATION 27
Slide 28: Revenue split by channel by region - 2022
zz REVENUE SPLIT BY CHANNEL - 30 2022 “K EMEA AMERICAS ASIA 2% 13% ep. 45% > 53% 63% 17% {) Food retail Foodservice?) | Other‘) Q3°22 EARNINGS PRESENTATION 28
Slide 29: Year-over-year 2022 gross margin bridge
YEAR-OVER-YEAR 30 2022 GROSS MARGIN BRIDGE NEAR-TERM MARGINS IMPACTED BY INFLATIONARY ENVIRONMENT, CONTINUED PRODUCTION UNDER-ABSORPTION AND RELATED CHARGES LINKED TO MACRO-ECONOMIC HEADWINDS PARTIALLY OFFSET BY PRICE INCREASES 2.2% 26.2% Pe (9.07) 3021 PRICING INFLATIONARY ACTIONS PRESSURES * Price
Slide 30: Scaling efficient global production capabilities
SCALING EFFICIENT GLOBAL PRODUCTION CAPABILITIES 2024/2025") Peterborough, UK Landskrona, SE *2023 Ogden, UT 180 me Maanshan, CN nativiite, x9 © 72022 Fs 2023/2024E Fort worth, TX Vlissingen, NL vi 2024E ® Asia III, CN DATE OF GO-LIVE Established capacity Capacity added in 2021 FHI 8 2er-term capaci
Slide 31: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES (Unaudited) Three Months Ended September 30, (in thousands of U.S, dollars) 2022 2021 Loss for the period attributable to shareholders of the parent (107,949) (41,193) Income tax (benefit)/expense (3,910) 567 Finance (income) and expenses, net 7,491 (3,8
Slide 32: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES (in thousands of U.S. dollars) EMEA Americas Asia Total revenue Three months ended September 30, $ Change & Change Foreign 2022 2021 As reported exchange In constant As reported In constant currency currency impact 82,567 87,398 82,567 14,484 97,051 5.5%
Slide 33: Updated foreign exchange assumptions for 2022
UPDATED FOREIGN EXCHANGE ASSUMPTIONS FOR 2022 SEK/USD EUR/USD GBP/USD RMP/USD GUIDANCE Updated@) Previous?) 11,14 10,25 1,02 0.96 0.90 0,82 712 6,67 &@ Chg ~8% 03°22 EARNINGS PRESENTATION 33,