Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q4 2022 Earnings Presentation
37 slides from Oatly Group AB's earnings presentation, March 2023
Slide 1: Q4 2022 Earnings Presentation
THE ORIGINAL Ly! 40 2022 EARNINGS PRESENTATION
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation contains forverdlocking statements vithin the mesning of the Private Securities Litigetion Reform Act of 1995, Any express or implied statements contained in this presentation that are not statements of historicel fact may be deoned fo be Forvard-looking stetynents
Slide 3: It's like milk but made for humans
It’s like milk but made for humans.
Slide 4: Business Update
TONI PETERSSON, CEO Business Update TONI PETERSSON, CEO CHRISTIAN HANKE, CFO JEAN-CHRISTOPHE FLATIN, GLOBAL PRESIDENT DANIEL ORDONEZ, COO Q&A 24°22 EARNINGS PRESENTATION 4
Slide 5: Key Messages
—KEVIMESSAGES ~ LI ENDED 2022 WITH A SOLID FOURTH QUARTER CONTINUED TO SEE STRONG UNDERLYING DEMAND FROM CONSUMERS AND CUSTOMERS STABILIZED AND ENHANCED GLOBAL SUPPLY CHAIN $425M IN COMMITTED FINANCING; FULLY FUNDED TO SUPPORT GROWTH INVESTMENTS AND REACH FINANCIAL SELF-SUFFICIENCY COMPANY WELL-POSI
Slide 6: Solid End to the Year
SOLID END TO THE YEAR Revenue Growth (vs prior year) Constant Currency Revenue Growth (vs prior year) Gross Margin change vs prior year change vs prior quarter Adj. EBITDA (in USD millions) change vs prior year, favorable 7 (unfavorable) change vs prior quarter, favorable / (unfavorable) 4Q 2022 41,
Slide 7: EMEA Gaining Momentum
EMEA GAINING MOMENTUM BEHIND DISCIPLINED EXECUTION CATEGORY GROWTH REMAINED ROBUST 2 IN TOTALEMEA IN 04 GAINING SHARE IN KEY MARKETS: Y/Y RETAIL SALES GROWTH FOR THE 30% 30% 12-WEEKS ENDING JAN. 1, 2023! 29h 12% 20% 25% Plant-Based Milk Oat
Slide 8: In 2023, EMEA Will Leverage Existing Assets to Expand
IN 2023, EMEA WILL LEVERAGE EXISTING ASSETS TO EXPAND ENHANCE PORTFOLIO BEYOND COFFEE — = aa on 7 =7" Ly! ar | ur mr | Wt MF ty! | , ie o ssa nwwe JD GROW FOODSERVICE CUSTOMERS (Y\ AASWISS Eurowings ~ LN ER AUSTRIA EXPAND TO ADJACENT MARKETS LIMITED NEED FOR NEW SUPPLY @ tel CHAIN INFRASTRUCTURE + *
Slide 9: Americas: Strong Underlying Consumer Demand
AMERICAS: STRONG UNDERLYING CONSUMER DEMAND WITH IMPROVED ABILITY TO SUPPLY CUSTOMERS WE ARE NOT REACHING OUR GROWTH RELATIVE VELOCITIES DEMONSTRATE ADEQUATE FILL RATES PROVIDE POTENTIAL... YET STRONG CONSUMER PREFERENCE FOUNDATION FOR FUTURE GROWTH US Y/Y RETAIL SALES GROWTH AMERICAS VELOCITIES AME
Slide 10: Stable and Expanded Capacity
STABLE AND EXPANDED CAPACITY KEY TO UNLOCKING GROWTH a. it MILLVILLE, NJ * Ogden, UT plant has been stable for >4 months * New Millville, NJ line began producing in 4Q22 * Once fully ramped, will increase Americas capacity by ~33% 24°22 EARNINGS PRESENTATION 10
Slide 11: Strengthens Supply Chain
STRENGTHENS SUPPLY CHAIN YA YA FOODS (YYF) PARTNERSHIP FURTHER A KEY PARTNERSHIP PRINCIPLES OGDEN AND DALLAS-FORT WORTH (DFW) FACILITIES CONVERTED FROM END-TO-END TO HYBRID PRODUCTION MODELS OATLY RETAINS OWNERSHIP AND OPERATION OF OAT BASE PRODUCTION YYF WILL BE RESPONSIBLE FOR ALL FILLING ACTIVITI
Slide 12: Americas' 2023 Priorities: Re-accelerate Growth
COMMERCIAL AMERICAS’ 2023 PRIORITIES: RE-ACCELERATE GROWTH WITH CONTINUED SUPPLY CHAIN IMPROVEMENT Expand distribution across all channels via new doors and incremental SKUs Refine in-store promotions starting Accelerate brand building starting in Ql in late Ql/early Q2 Execute transition Consolidat
Slide 13: While Managing Through COVID-19, Asia Continued to Invest
WHILE MANAGING THROUGH COVID-19, ASIA CONTINUED TO INVEST TO STRENGTHEN PLATFORM FOR FUTURE GROWTH ASIA MARKETING MARKETING 2Y/Y GROWTH SPEND AS AZ OF CAMPAIGNS & REVENUE IN-STORE DISPLAYS a4 -FY22 fe Volume 422% 432% »20% ' INCREASED DOORS +150% ; ; i | YEAR-OVER-YEAR IN 2022 (lancet Cobroneyy0) (O
Slide 14: Stable Local Supply to Facilitate Asia's Expansion in 2023
STABLE LOCAL SUPPLY TO FACILITATE ASIA’S EXPANSION IN 2023 AS COVID-19 RESTRICTION EASE * Opportunities remain in coffee and QsrRs(1) * Expand in tea and e-commerce * Accelerate entrance into retail * Continue rolling out recent launches * New formats and sizes * Leverage co=branding for additional
Slide 15: Financing Overview
FINANCING OVERVIEW FULLY FUNDED TO $425M COMMITTED THROUGH CONVERTIBLE SUPPORT GROWTH BONDS AND TERM LOAN B INVESTMENTS AND REACH FINANCIAL SELF- COMMITMENT LETTER FOR RENEWAL OF SUFFICIENCY REVOLVING CREDIT FACILITY KEY ANCHOR SHAREHOLDER SUPPORT
Slide 16: Accelerate Top Line Growth Globally
ACCELERATE TOP LINE GROWTH GLOBALLY CONTINUOUS IMPROVEMENT IN SUPPLY CHAIN 2023 PRIORITIES DRIVE TOWARDS PROFITABILITY DELIVER 2023 GUIDANCE 24°22 EARNINGS PRESENTATION 4
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS f Pt
Slide 18: 4Q 2022 & FY22 Financial Highlights
40 2022 & FY22 FINANCIAL HIGHLIGHTS 4Q 2022 Revenue Growth (vs prior year) +5% Constant Currency Revenue Growth +14% (vs prior year) Gross Margin 16% change vs prior year Flat change vs prior quarter +1,320 bps Adj. EBITDA (in usp millions) $(60) change vs prior year, favorable / (unfavorable) +55 c
Slide 19: 2022 Revenue Growth
40 2022 REVENUE GROWTH Revenue (USD in millions) % Year-over-year growth +5% +10% +4h Revenue Growth Es $185.9 a 198 ( ; j (9%) +14% Constant Currency Revenue Growth'2) Q4 2021 Revenue YoY Volume Growth YoY Constant Currency FX Impact Q4 2022 Revenue Price/Mix Growth(2) sndlx for a reconciliation to
Slide 20: 2022 Revenue Bridge
EMEA Americas Asia Total 40 2022 REVENUE BRIDGE Constant ; Constant | Revenu Currency’) i Currency") | evenue Volume Price / Mix! Growth | FX Impact Growth 12% Ah a (144) lf ny 4 16% 16% 0% 16% 22h (15%) 5 BHR} (10) (2%) 10% af | 14h | (98) of 04°22 EARNINGS PRESENTATION 20
Slide 21: Quarter-over-Quarter 4Q 2022 Gross Margin Bridge
QUARTER-OVER-QUARTER 4Q 2022 GROSS MARGIN BRIDGE SEQUENTIAL IMPROVEMENT IN MARGINS DRIVEN BY IMPROVING PRODUCTION ABSORPTION, LOWER INFLATION AND FEWER ONE-OFFS THAN 30 2022 LINKED TO MACRO-ECONOMIC ENVIRONMENT 0.3% 147 0.6% 15.9% Pe 6.6% 2.7% i 30.2022 ‘SUPPLY CHAIN COVID-19 PRESSURE PRICING ACTION
Slide 22: Profit and Cash Flow Items
PROFIT AND CASH FLOW ITEMS | mEMEA Americas mAsia Corporate $2 “iy (917) ($37) ($26) ($60) (83) 3Q 2022 4Q 2022 sargin ere non-iF#5 maasures. Soe the Appendix to thie res $274 $220 - 240 $202 FY 2021 FY 2022 FY 2022 Guidance 24°22 EARNINGS PRESENTATION 22
Slide 23: Financing Overview
FINANCING OVERVIEW FULLY FUNDED TO SUPPORT GROWTH INVESTMENTS AND REACH FINANCIAL SELF-SUFFICIENCY Size (Susp) Investors /lenders Pricing PRIVATE CONVERTIBLE NOTES SR. SEC. TERM LOAN B $300mm Anchor shareholder support from Nativus, Verlinvest, and Blackstone for $200mm 3% Original Issue Discount 9,
Slide 24: 2023 Outlook
REVENUE®) GROSS MARGIN CAPEX OUTLOOK™ 2023 23% = 28% YOY CONSTANT CURRENCY GROWTH FX headwind of ~250 bps; Ql highest impact, moderating thereafter SEQUENTIAL 0/0 IMPROVEMENT, REACHING HIGH-2025 IN 40 $180 - $200 MILLION SETS UP FY 2024 FOR POSITIVE ADJ. EBITDA ON A FULL-YEAR BASIS
Slide 25: Clear Line of Sight to Improved Gross Margins in 2023
CLEAR LINE OF SIGHT TO IMPROVED GROSS MARGINS IN 2023 HIGH 2075 | 6 a 40.2022 COVID-19 EMEA IMPROVING AMERICAS IMPROVING UTILIZATION 40 2023 ONE-OFFS IN ASIA PRICE INCREASES: CHANNEL MIX ‘AND CO-PACKER CONSOLIDATION, NET OF INFLATION
Slide 26: Longer-Term Targets
LONGER-TERM TARGETS MARGIN TARGETS ALLOW FOR FLEXIBILITY OF Grose profit margin LONG-TERM PRODUCTION MIX Hybrid End-to-End = <= Co-packing Peterborough 35-40% | and Asia 111 treated as £26 31% 50-60% Adjusted EBITDA margin(2) 50-55% 44% 30-40% 4022 Long-Term Target fFully-Ramped Mix @ IPO Post-Ya YA
Slide 27: Production Facilities Locations
Peterborough, UK Landskrona, SE Ogden, UT Ma’anshan, CN Millville, NJ Fort Worth, TX Vlissingen, NL Asia III, CN Singapore, SG 27
Slide 28: Appendix
APPENDIX
Slide 29: Revenue Split by Channel and Region
~ | LA REVENUE SPLIT BY CHANNEL - 40 2022 REVENUE SPLIT BY REGION ®) - 40 2022 5% 38% 57% Food retail _ Foodservice‘) Other'?) {emea Americas | Asia 24°22 EARNINGS PRESENTATION 29
Slide 30: Revenue Split by Channel - 4Q 2022
“REVENUE SPLIT BY CHANNEL-40.2022 1% 1% 10% 21% 14 49% 50% 69% 17% Hi Food retail Foodservice(!) | Other(2) 21 ther ie seinly o-Conperce, 4°22 EARNINGS PRESENTATION 30
Slide 31: Year-over-Year 2022 Gross Margin Bridge
2444 YEAR-OVER-YEAR 2022 GROSS MARGIN BRIDGE 2.1% (4.57) (457) (2.62) 114% 253 (2.37) (a3 PRICING INFLATIONARY CONTINUED COVID-19 EXTENDED RAMP-UP EMEA CHARGES EXACERBATED OTHER, NET 2022 ACTIONS PRESSURES: PRESSURES IN ASIA OF OGDEN FACILITY BY VOLATILITY IN THE MACRO ENVIRONMENT 24°22 EARNINGS PRE
Slide 32: Resilient Performance as a Global Oatmilk Category Leader
RESILIENT PERFORMANCE AS A GLOBAL OATMILK CATEGORY LEADER ee ne % of total plant-based milk retail market() OATLY DRIVES «cs vs ao GROWTH FOR oat > ——______., THEOAT = CEL 7 sex — CATEGORY AS oatty as P im IT GAINS Ka a oatly GER, /_wnisnees 20% 25% 25% eva, market, aN DRY % on ia | Ae ———S————" ost
Slide 33: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Three months ended December 31, (unaudited) (in thousands $) Loss for the period attributable to shareholders of the parent Income tax (benefit)/expense Finance (income) and expenses, net Depreciation and amortization expense EBITDA Share-based compensat
Slide 34: 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 35: Reconciliation of Non-IFRS Financial Measures
## ELiminations in 2022 refer to intersegnent revenue for sales RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Three Months Ended December 31, 2022 (in thousands of U.S. dollars) EMEA Americas Asia Corporate* Eliminations** Total Revenue Revenue from external customers 89,974 64,386 40,708 = = 195,06
Slide 36: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES (in thousands of U.S. dollars) EMEA Americas Asia Total revenue EMEA Americas Asia Total revenue Three Months Ended Decosber 31, $ Change % change 202202 sorted sschnge Jn constant ag seported TL SOH=M —Vetune sinroney 89,974 88,881 89,974 12,615 102,589
Slide 37: Foreign Exchange Assumptions for 2023 Revenue Guidance
FOREIGN EXCHANGE ASSUMPTIONS FOR 2023 REVENUE GUIDANCE 2022 Average Used for Fiscal 2023 Budgeted Constant Currency Rates Used for Sales Growth in 2023 Estimated FX Impact SEK/USD 10,10 10,41 EUR/USD 1.05 1,00 GBP/USD 0.81 0.84 RMB/USD 6.74 6.80 24°22 EARNINGS PRESENTATION 37