Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q3 2016 Earnings Presentation
29 slides from Nomad Foods's earnings presentation, Nov 29, 2016
Slide 1: Earnings Conference Call Q3 2016 Update
Earnings Conference Call Q3 2016 Update Tuesday, November 29th 2016 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 3
Slide 4: Q3 2016 Financial Performance
Q3 2016 Financial Performance
Slide 5: Nomad Net Sales Performance by Quarter
Nomad Net Sales Performance by Quarter Pre-Nomad Strategy New Strategic Direction Strategic Food of Life Pan-European Ad Campaign Launch Review Revenue Mgmt. Cost Review NPD Strategy Launches New Packaging Promo Changes Launch Annual Annual New Negotiations Negotiations Advertising Refreshed Adverti
Slide 6: Q3 2016 Operating Performance
Q3 2016 Operating Performance 1) €m Q3/16 Q3/15 Delta Revenue 439.5 472.1 -32.6 Gross Profit 128.0 139.7 -11.7 Gross profit margin (%) 29.1% 29.6% -0.5% A&P -21.9 -23.6 1.7 A&P (% Revenues) 5.0% 5.0% 0.0% Indirects -34.0 -48.3 14.3 Indirects (% Revenues) 7.7% 10.2% -2.5% Depreciation & Amortisation
Slide 7: Q3 2016 Performance Highlights
Q3 2016 Performance Highlights Q3 2016 Performance Revenue was down €32.6m or 6.9%, year-on-year. Adjusting for currency impacts and the exit from Russia, the like-for-like decline was 3.3% - an improvement on the rate of decline in the first half of 2016. As has been the case in the past few quar
Slide 8: Q3 2016 Revenue Bridge
Q3 2016 Revenue Bridge As Adjusted Revenue LFL : (3.3%) 1) 1) For comparative purposes, Nomad Foods is also presenting Pro Forma As Adjusted financial information for the three months ended September 30, 2015. Pro Forma As Adjusted financial information for the three months ended September 30, 2015
Slide 9: Q3 2016 Gross Profit Bridge
Q3 2016 Gross Profit Bridge As Adjusted Gross Margin: (0.5%) 29.6% 29.1% 1) 1) For comparative purposes, Nomad Foods is also presenting Pro Forma As Adjusted financial information for the three months ended September 30, 2015. Pro Forma As Adjusted financial information for the three months ended Se
Slide 10: Q3 2016 EBITDA Bridge
Q3 2016 EBITDA Bridge As Adjusted EBITDA Margin: +2.0% 17.4% 19.4% 1) 1) For comparative purposes, Nomad Foods is also presenting Pro Forma As Adjusted financial information for the three months ended September 30, 2015. Pro Forma As Adjusted financial information for the three months ended Septembe
Slide 11: YTD 2016 Operating Performance
YTD 2016 Operating Performance 1) €m YTD 16 YTD 15 Delta Revenue 1,442.5 1,530.9 -88.4 Gross Profit 435.1 466.8 -31.7 Gross profit margin (%) 30.2% 30.5% -0.3% A&P -76.4 -93.2 16.8 A&P (% Revenues) 5.3% 6.1% -0.8% Indirects -133.7 -151.7 18.0 Indirects (% Revenues) 9.3% 9.9% -0.6% Depreciation & Amo
Slide 12: YTD 2016 Performance Highlights
YTD 2016 Performance Highlights YTD 2016 Performance Revenue was down €88.4m or 5.8%, year-on-year. Adjusting for currency impacts, the exit from Russia, an additional trading day in Q1 2016 due to the leap year and the business acquisition of La Cocinera in Spain, the like-for-like decline was 4.
Slide 13: YTD 2016 As Adjusted Cash flow
YTD 2016 As Adjusted Cash flow YTD YTD Q3/16 Q3/15(1) DELTA €m €m €m As Adjusted EBITDA 262.8 260.5 2.3 Loss on disposal of property, plant & equipment 0.4 0.1 0.3 Working Capital movement (28.3) (25.7) (2.6) Pensions & Other Provisions movements (2.5) (5.6) 3.1 Capital Expenditure (18.2) (37.5) 19.
Slide 14: Q&A
Nomad Foods Q&A
Slide 15: Appendix
Nomad Foods Appendix
Slide 16: Contents
Contents The following tables have been included to allow users to reconcile non-IFRS financial information as well as As Adjusted and Pro Forma As Adjusted financial information included within this presentation to reported IFRS financial information. 1) Reconciliation of reported to As Adjusted fi
Slide 17: Reconciliation of reported to As Adjusted information, three months ended September 30, 2016
1) Reconciliation of reported As Adjusted financial information for the three months ended September 30, 2016 As reported for the three months As Adjusted for the ended September three months ended € in millions 30, 2016 Adjustments September 30, 2016 Revenue 439.5 - 439.5 Cost of sales (311.5) - (3
Slide 18: Reconciliation to As Adjusted, three months 2016 (continued)
1) Reconciliation of reported to As Adjusted financial information for the three months ended September 30, 2016 (continued) As reported for the three months ended € in millions September 30, 2016 Profit before tax 21.5 Net financing costs 16.3 Depreciation 11.3 Amortization 1.7 EBITDA 50.8 Exceptio
Slide 19: Reconciliation to As Adjusted, three months 2015
2) Reconciliation of reported to As Adjusted financial information for the three months ended September 30, 2015 Add Findus Group Pro Forma As unaudited results for Adjusted for the As reported for the the three months three months three months ended ended September 30, ended September € in millions
Slide 20: Reconciliation to As Adjusted, three months 2015 (continued)
2) Reconciliation of reported to As Adjusted financial information for the three months ended September 30, 2015 (continued) (a) Elimination of costs incurred in relation to completed and potential acquisitions. (b) Adjustment to eliminate long term management incentive scheme costs from prior owner
Slide 21: Reconciliation to As Adjusted, nine months 2016
3) Reconciliation of reported to As Adjusted financial information for the nine months ended September 30, 2016 As reported for the As Adjusted for the nine months ended nine months ended € in millions September 30, 2016 Adjustments September 30, 2016 Revenue 1,442.5 - 1,442.5 Cost of sales (1,007.4
Slide 22: Reconciliation to As Adjusted, nine months 2016 (continued)
3) Reconciliation of reported to As Adjusted financial information for the nine months ended September 30, 2016 (continued) As reported for the nine months ended September € in millions 30, 2016 Profit before tax 72.0 Net financing costs 39.9 Depreciation 32.8 Amortization 5.0 EBITDA 149.7 Exception
Slide 23: Reconciliation of profit before tax to Pro Forma As Adjusted EBITDA, nine months 2015
4) Reconciliation of reported profit before tax to Pro Forma As Adjusted EBITDA for the nine months ended September 30, 2015 Add Iglo Add Findus Group Group unaudited unaudited Pro Forma As As reported results for results for the Adjusted for for the nine the five nine months the nine months ended m
Slide 24: Reconciliation of profit before tax to Adjusted EBITDA, nine months 2015 (continued)
4) Reconciliation of reported profit before tax to Pro Forma As Adjusted EBITDA for the nine months ended September 30, 2015 (continued) (a) Elimination of costs incurred in relation to completed and potential acquisitions. (b) Elimination of charges at the Iglo Group level related to the purchase p
Slide 25: Reconciliation of net cash flows from operating activities, nine months 2016
5) Reconciliation of reported net cash flows from operating activities to As adjusted Operating Cash flow (excl. tax) for the nine months ended September 30, 2016 As reported for the nine months ended September € in millions (unaudited) 30, 2016 Net cash flows from/(used in) operating activities 184
Slide 26: Reconciliation of net cash flows from operating activities, nine months 2015
6) Reconciliation of reported net cash flows from operating activities to As adjusted Operating Cash flow before tax, As adjusted Operating Cash flow, As Adjusted Cash flow available for Debt Servicing, and, As Adjusted Cash flow available for Debt Repayment for the nine months ended September 30, 2
Slide 27: Reconciliation of cash flow detail line items, nine months 2016
7) Reconciliation of reported cash flow detail line items to As Adjusted financial information for the nine months ended September 30, 2016 Working capital cash flows As reported for the nine months ended € in millions (unaudited) September 30, 2016 Increase in inventories (25.0) Increase in trade a
Slide 28: Reconciliation of cash flow detail line items, Pro Forma nine months 2015
8) Reconciliation of reported cash flow detail line items to Pro Forma As Adjusted financial information for the nine months ended September 2015 As reported Add As Add Iglo Group Pro Forma for the three reported for the unaudited as Add Findus As Adjusted months six months reported for the Group fo
Slide 29: Reconciliation from Findus Sverige AB Carve-out Financial Statements
9) Reconciliation from reported Findus Sverige AB Consolidated Carve-out Financial Statements for the year ended September 30, 2015, to financial information for other periods used elsewhere in this appendix Nomad Foods is presenting As reported Findus financial information within this appendix. Thi