Slide 1: 2Q 2022 Earnings Presentation
THE ORIGINAL Ly! 20 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-looking statement
Slide 3: It's like milk but made for humans
It’s like milk but made for humans.
Slide 4: Broad-based revenue growth across regions
Broad—based revenue growth across regions Continue to scale production across three continents Leading market share across key markets(1) #1 = selling oatmilk SKU and highest velocities across key markets‘) New product launches and distribution gains driving conversion from dairy to Oatly Notes: Mol
Slide 5: Global, scaled revenue growth
GLOBAL, SCALED REVENUE GROWTH DRIVEN BY GROWING CONSUMER DEMAND AND EXPANDING PRODUCTION FOOTPRINT +30% - 34% Revenue (USD in millions) % Year—over-year growth {J emea Americas | Asia +24% = 29% $835 - $865 ceneten cunsamey $800 - $830 Q2 2022 LT™ $701 $118 2018” 20226” 31, 2018 02°22 EARNINGS PRESE
Slide 6: Revenue split by region and channel
~ LA REVENUE SPLIT BY REGION“) - 20 2022 REVENUE SPLIT BY CHANNEL - 20 2022 8% 46% 35% 57% Americas | Asia Food retail _ Foodservice?) Other() 02°22 EARNINGS PRESENTATION
Slide 7: Key retail and e-commerce performance highlights
KEY RETAIL AND E-COMMERCE PERFORMANCE HIGHLIGHTS SALES GROWTH DRIVER... #1@2024242: of the total dairy alternatives category‘) SALES GROWTH DRIVER... #1204202 of the oatmilk category(!) VELOCITY... A a ranking vs. non-dairy milk brands‘?) OATMILK BRAND POSITION... #1 by net sales (U.S.)(5) and retai
Slide 8: Converting dairy users into Oatly consumers
CONVERTING DAIRY USERS INTO GATLY CONSUMERS Increase brand reach and awareness Invest in global production capacity Pioneer new product innovation Expand distribution footprint across channels Enter new markets Q2°22 EARNINGS PRESENTATION 8
Slide 9: Emerging oatmilk as the non-dairy default
EMERGING OATMILK AS THE NON-DAIRY DEFAULT The oat category is gaining market share and surpassing other crop categories Inherent sustainable characteristics Flexible within the supply chain Widely accessible to a range of eaters % of total plant-based milk retail market() Soy —— Almond Dairy Alterna
Slide 10: Oatly drives growth for the oat category
OATLY DRIVES GROWTH FOR THE OAT CATEGORY Gaining market share in key markets Total plant-based market share‘) YOY GROWTH OAT YOY GROWTH YOY GROWTH pA@) OATLY «, DA®@) OATLY «, DA OATLY 2 «BE 48% 9% 13% oat 6% 38% OAT 67% 22%. OATLY 25% OATLY 22% OATLY 54 dune ‘19 Bune ‘22 dune ‘19 Bune ‘22 dune ‘19
Slide 11: 2022 revenue growth impacted by FX movements
20 2022 REVENUE GROWTH IMPACTED BY FX MOVEMENTS Revenue (USD in millions) % Year-over-year growth {J emea Americas |_| Asia Constant currency revenue growth(?) YoY sales YoY Sales volumes +16% 437% +560 volumes +28% growth (2) growth (2) +30% FX Customer Channel 422% impact. mix mix partly $43 $190
Slide 12: EMEA: market leadership in key markets
EMEA: MARKET LEADERSHIP IN KEY MARKETS WITH FURTHER GROWTH OPPORTUNITIES | NETSALES = 20.2022 NET SALES SPLIT BY CHANNEL GROWTH OPPORTUNITIES (usb in millions) & Year-over-year grouth YoY Sales volumes +71% growth (2) +73% $268 $155 2019 2020 Sourcot Molson 1a, 181, Lp ML Lon 2 +21% +26% $336 2021 +
Slide 13: Driving growth with new product launches and distribution
DRIVING GROWTH IN EXISTING MARKETS WITH NEW PRODUCT LAUNCHES AND EXPANDING DISTRIBUTION #1 VELOCITY LEADERSHIP IN RETAIL LAUNCHING NEW FORMATS OF OUR #1 SKU EXPANDING DISTRIBUTION TO REACH WITH A SUPERIOR PRODUCT TO CONVERT NEW CONSUMERS CONSUMERS WHERE THEY SHOP vevociTy: UNTTS/STORE/UEEK | v2) on
Slide 14: Significant international expansion opportunity
SIGNIFICANT INTERNATIONAL EXPANSION OPPORTUNITY WITH EXPANDED PRODUCTION CAPACITY OATLY’S EMEA PRESENCE CURRENT KEY MARKETS CONSIST OF UK, DACH, THE NORDICS AND THE NETHERLANDS LIMITED PRESENCE IN BROADER EMEA EXPECT INVESTMENTS IN EXPANDING PRODUCTION CAPACITY WILL ENABLE OATLY TO ENTER ADDITIONAL
Slide 15: Americas: broad and balanced multi-channel footprint
Sourcot Nielsen 10, AMERICAS: BROAD AND BALANCED MULTI-CHANNEL FOOTPRINT TO DRIVE CATEGORY GROWTH | NETSALES = MM 20.2022 NET SALES SPLIT BY CHANNEL GROWTH OPPORTUNITIES (usb in millions) & Year-over-year grouth YoY Sales volumes +158% growth (2) +156% $100 $39 2019 2020 Rildon 24t ee & Toa shops, +
Slide 16: Fastest turning national brand in the U.S. milk category
FASTEST TURNING NATIONAL BRAND IN THE ENTIRE U.S MILK CATEGORY WITH SIGNIFICANT DISTRIBUTION UPSIDE #1 FASTEST-TURNING BRAND IN THE TOTAL MAINTAINING STRONG VELOCITY AS PRODUCTION RAMPS UP AND DISTRIBUTION EXPANDS, DAIRY AND PLANT-BASED MILK CATEGORIES WITH FURTHER UPSIDE FROM CLOSING FILL RATE GAPS
Slide 17: Asia: strong brand positioning with significant upside
ASIA: STRONG BRAND POSITIONING WITH SIGNIFICANT UPSIDE | NETSALES =I. -20.2022 NET SALES SPLIT BY CHANNEL GROWTH OPPORTUNITIES USD i illic § Moe ee) south Product portfolio expansion YoY Sales Retail volumes +599% +121% +55% 1% e growth(t) 166% Other (3) OF 2021 SALES FROM ONE SKU 30% siseg 9148 $12
Slide 18: Expanding the conversion universe through new product launches
EXPANDING THE CONVERSION UNIVERSE THROUGH NEW PRODUCT LAUNCHES SINCE LAUNCH, TEA MASTER HAS BECOME THE “SUMMER DRINK” IN THE TEA CHANNEL, INCREASING ON-THE-GO OCCASIONS WITH SUPPORTED BY TAILORED ONLINE & DIRECT PROMOTION WITH KEY PARTNERS PRISMA 250ML FORMAT Secured 13,000+ doors in the specialty t
Slide 19: Margin and volume results
Production volume(1) 106 124 % % Margin 26.4% 15.8% Margin (21.8%) (30.0%) Sales 95 121 volume(1) +22% (2) • • • • • • •
Slide 20: Production and sales volume by region
Production volume(1) 79 69 28 39 – 15 106 124 Sales volume(1) 55 +16% 64 26 +37% 35 14 +56% 22 95 +28% 121 +22% (2) +5% (3) +25% +66% (4) • • • • • • • • • • •
Slide 21: Quarter-over-quarter 2022 gross margin bridge
QUARTER-OVER-QUARTER 20 2022 GROSS MARGIN BRIDGE SEQUENTIAL INCREASE IN MARGINS DRIVEN BY IMPROVING PRODUCTION MODEL, POSITIVE PRICING AND MIX EFFECT, PARTIALLY OFFSET BY INFLATIONARY ENVIRONMENT MANUFACTURING AND SUPPLY CHAIN IMPACTS +410 +6.3% 0.3% 19% 15.8% azn Sg | ax | (187) 10.2022 HIGHER SHAR
Slide 22: Production volumes expected to step up in the third quarter
PRODUCTION VOLUMES EXPECTED TO STEP-UP IN THE THIRD QUARTER Finished goods production volumes (in million litres) Q2 2022 Commentary * Increased our quarterly production output by 17% vs, prior year, ending at 124ML * EMEA: Stable production output; adjusted to macro dynamics * Americas: Record quar
Slide 23: Variety of production models to meet growing demand
WE CURRENTLY DEPLOY A VARIETY OF PRODUCTION MODELS TO MEET OUR GROWING DEMAND Early capex investment into self-manufacturing production models to drive margin profile CO-PACKING Oat base is shipped to external co- packing partners by ground transportation to execute the mixing and filling process Qa
Slide 24: Scaling efficient global production capabilities
SCALING EFFICIENT GLOBAL PRODUCTION CAPABILITIES 2024E0 Peterborough, UK u 77 | Landskrona, se i ¥2025 ' 1 ' ' 1 ' 1 ' 1 n e Ogden, UT 4 me Maanshan, CN 180 Millville, NO 1 2022 1 2023/2024E Fort worth, TX Vlissingen, NL 2 2023/2024E( Asia III, CN DATE OF GO-LIVE Established capacity Capacity added
Slide 25: Shifting production model mix to localized and in-house production
SHIFTING PRODUCTION MODEL MIX TO LOCALIZED AND IN-HOUSE PRODUCTION FY 2021 YEAR-END FY 2022 TARGET LONG-TERM” Co=Packing Self- Co-Packing 10-20% Manufacturing Self- Self- 21% co-Pavking Manufacturing Manufacturing 44% 50-60% Hybrid 30-40% Hybrid 35% Hybrid GROSS MARGIN 247 For illustrative purposes
Slide 26: Updated 2022 guidance
UPDATED 2022 GUIDANCE REVENUE $800 - $830 MILLION 244-294 YOY GROWTH CAPITAL EXPENDITURES $220 - $240 MILLION RUN-RATE CAPACITY AT ~900 MILLION LITRES THE END OF THE YEAR OF FINISHED GOODS CONSTANT CURRENCY $835 - $865 MILLION 30% 34% YOY GROWTH 02°22 EARNINGS PRESENTATION 26
Slide 27: 2022 revenue guidance
2022 REVENUE GUIDANCE”) REVISED EXPECTATIONS DRIVEN 4376 = 43% YoY PRIMARILY BY TRANSLATION CURRENT MACRO IMPACT DUE TO $880 - $920 ENVIRONMENT +30% - 34% YoY FX MOVEMENTS $835 - $865 DURING 2022 ($45) - ($55) ($35) PREVIOUS 2022E UPDATED 2022E REVENUE REVENUE (CONSTANT CURRENCY)” 1, Those are goals
Slide 28: Key drivers of profitability in the medium-term
KEY DRIVERS OF PROFITABILITY IN THE MEDIUM-TERM Increasing in-house production Localization of production Operating leverage from increased sales Scalable infrastructure LONG-TERM TARGETS GREATER THAN 407 APPROACHING 207 e 22°22 EARNINGS PRESENTATION 28
Slide 29: 92°22 —
92°22 EARNINGS PRESENTATION — 29
Slide 30: Year-over-year Q2 2022 gross margin bridge
YEAR-OVER-YEAR 20. 2022 GROSS MARGIN BRIDGE NEAR-TERM MARGINS IMPACTED BY INFLATIONARY ENVIRONMENT AND CARRYING FULL FIXED AND VARIABLE COST STRUCTURE OF THREE NEW FACILITIES DURING PRODUCTION RAMP-UP PHASE MANUFACTURING AND SUPPLY CHAIN IMPACTS PRICING AND INFLATIONARY IMPACTS (5.97) (3.87) 2.8% 2
Slide 31: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES (Unaudited) Three Months Ended June 30, (in thousands of U.S, dollars) 2022 2021 Loss for the period attributable to shareholders of the parent (71,990) (59,064) Income tax (benefit)/expense (3,032) 264 Finance income and expenses, net 593 10,696 Depreci
Slide 32: Reconciliation of non-IFRS financial measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES EMEA Americas Asia Total revenue Three months ended June 30, § Change % Change Foreign 2022 2021 As reported exchange In constant As reported In constant currency currency impact 82,485 78,526 82,485 10,647 93,132 5.0% 18.6% 51,775 41,346 51,775 - 51,775
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?) % Chg 10,25 9,14 ~11% 0.96 0.88 ~8% 0,82 0.74 ~10% 6.67 6.35 ~5% 22°22 EARNINGS PRESENTATION 33,