Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q3 2015 Earnings Presentation
25 slides from Nomad Foods's earnings presentation, Nov 16, 2015
Slide 1: Earnings Conference Call Q3 2015 Update
Earnings Conference Call Q3 2015 Update Monday, November 16 2015 These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse AG or its Affiliates (hereafter “Credit Suisse”).
Slide 2: Disclaimer
Disclaimer BY READING THIS PRESENTATION, YOU ARE DEEMED TO HAVE READ AND ACCEPTED THE STATEMENT BELOW. This presentation has been prepared by Nomad Foods Limited. This presentation provides information about Nomad Foods Limited and its subsidiaries. Any references to Nomad shall mean Nomad Foods Lim
Slide 3: Today's Presenters
Today’s Presenters Stéfan Descheemaeker Paul Kenyon CEO CFO 2
Slide 4: Agenda
Agenda 1 Q3 and YTD Financial Performance 2 Strategy Evolution 3 Findus Overview 3
Slide 5: Investment Highlights
Investment Highlights Platform to Lead Consolidation Leading Player in the Large and Iconic Brands with Strong in the Fragmented Global Food Resilient Western European Brand Equity Sector Frozen Food Market Attractive Financial Experienced Team with a Multiple Organic Growth Characteristics and Sign
Slide 6: 1. Q3 and YTD Financial Performance
1. Q3 and YTD Financial Performance
Slide 7: Q3 and YTD 2015 Performance Highlights
Q3 and YTD 2015 Performance Highlights Q3 Net Revenue decline was (8.4)%. Allowing for currency impacts and the exit from Romania, Slovakia and Turkey, like- for-like Net Revenue decline was (11.2)%. Gross margin declined by (3.3)pp driven by increased promotional investments coupled with the im
Slide 8: 2015: Q3 Operating Performance
2015: Q3 Operating Performance Note: Pro Forma As Adjusted results include reported Nomad Foods results for the three months ended September 30, 2015, which includes three months of results for the Iglo Group. The Iglo Group results have been added for pro forma purposes 7 for the three months ended
Slide 9: 2015: Q3 Net Sales Bridge
2015: Q3 Net Sales Bridge Net Sales LFL: (11.2%) FX One-off Market Retailer Portfolio Note: Financials as per management accounts. 8
Slide 10: 2015: Q3 Gross Profit Bridge
2015: Q3 Gross Profit Bridge Gross Margin: (330)bps 35.8% FX Vol/Mix Net Pricing 32.5% Note: Financials as per management accounts. 9 9
Slide 11: 2015: YTD Operating Performance
2015: YTD Operating Performance Note: Pro Forma As Adjusted results include reported Nomad Foods results for the nine months ended September 30, 2015 (which include June 1 – September 30, 2015 results for the Iglo Group) and from April 1, 2014 to September 30, 2014 (Nomad 10 Foods Limited only being
Slide 12: Cash Flow Generation Remains Strong
Cash Flow Generation Remains Strong YTD YTD Delta 2015 NOMAD 2014 2015 Proforma as adjusted profit/(loss) before tax 152.9 140.5 -12.4 Net interest 41.5 41.9 0.4 Depreciation 20.7 22.9 2.2 Amortisation 3.0 1.2 -1.8 Proforma as adjusted EBITDA before non-recurring (@ act. FX rate) 218.1 206.5 -11.6 W
Slide 13: 2. Strategy Evolution
Nomad Foods 2. Strategy Evolution
Slide 14: Strategy
Strategy Organic Critical to respond to ongoing top‐line pressures from discounters and private-label across our markets growth Long‐term vision to stabilize and grow top‐line based on an identified growth strategy − Save to re‐invest: Cost cutting and disciplined cost management to fund top‐lin
Slide 15: 3. Findus Overview
Nomad Foods 3. Findus Overview
Slide 16: Findus Continental Europe Overview
Findus Continental Europe Overview Business Snapshot Geographic Breakdown – FY2014 Transaction perimeter included non-UK operations only Revenue EBITDA − Key markets: Norway, Sweden, and France Other − Other markets: Spain, Finland, Denmark & Belgium Other 15% 8% Leading frozen food player in ke
Slide 17: Leading Frozen Food Player in Key Markets
Leading Frozen Food Player in Key Markets Prominent market position Well known and recognized brand with long heritage Key markets Other(1) Sweden Norway France Finland Spain Geography overview Significant Retail presence Retail business dominated Principally Retail sales, No manufacturing
Slide 18: Transaction Rationale
Transaction Rationale Strong fit with Nomad’s stated acquisition criteria; compelling strategic and financial logic Further strengthens Europe’s leading frozen business Creates additional scale +c.43% €2.1 billion combined sales Iconic brands across key markets Strong Brand Reunites Find
Slide 19: Findus Synergy and Integration
Findus Synergy and Integration Pre-deal preparation and planning has enabled a strong start to the integration of the two businesses with a focus on realizing operational cost synergies. Supply Chain – procurement, manufacturing and logistics − Boulogne-Sur-Mer works council agreement signed wit
Slide 20: Findus Acquisition is Transformative and Provides Diversification
Findus Acquisition is Transformative and Provides Diversification LTM Sept-2015 combined net sales (1) LTM Sept-2015 combined adjusted EBITDA (1) €m €m 400 Synergies 2,073 35 Increased scale 619 71 365 1,454 1,454 294 294 + + 2014A: Category split (2) 2014A: Geographical split (3) Poultry Others 9%
Slide 21: Investment Highlights
Investment Highlights Platform to Lead Consolidation Leading Player in the Large and Iconic Brands with Strong in the Fragmented Global Food Resilient Western European Brand Equity Sector Frozen Food Market Attractive Financial Experienced Team with a Multiple Organic Growth Characteristics and Sign
Slide 22: Q&A
Nomad Foods Q&A
Slide 23: Appendix
Nomad Foods Appendix
Slide 24: EBITDA and Adjusted EBITDA (unaudited)
EBITDA and Adjusted EBITDA (unaudited) Nine Months Ended September 30, 2015 Nomad Foods Limited for Nomad Foods Limited for Iglo Group results for the Pro Forma As Adjusted for the six months ended the three months ended five months ended May the nine months ended September 30, 2015 March 31, 2015 3
Slide 25: EBITDA and Adjusted EBITDA (unaudited)
EBITDA and Adjusted EBITDA (unaudited) Nine Months Ended September 30, 2014 Nomad Foods Limited for Iglo Group results for the Pro Forma As Adjusted the nine months ended nine months ended for the nine months ended September 30, 2014 September 30, 2014 Adjustments(1) September 30, 2014 €m €m €m €m G