Nomad Foods Limited · NYSE:NOMD
Nomad Foods — CAGNY 2022
59 slides from Nomad Foods's conference presentation, Feb 24, 2022
Slide 1: CAGNY Investor Presentation
CAGNY Investor Presentation February 24, 2022
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared and issued by Nomad Foods Limited (the “Company”). This Presentation has been provided solely for information and background. The information in this Presentation is provided as at the date of the Presentation (unless stated otherwise). This Presentatio
Slide 3: Company Overview
Company Overview Stéfan Descheemaeker Chief Executive Officer
Slide 4: Nomad Foods is a Uniquely Positioned Growth Company
Nomad Foods is a Uniquely Positioned Growth Company 1 European market leaders in the Frozen Food category, which is well positioned to lead on Health and Sustainability 4 Balanced contribution from organic revenue growth and contribution from strategic acquisitions 2 A highly focused portfolio of ma
Slide 5: A Portfolio of Europe's Leading Frozen Food Brands
Company Overview A Portfolio of Europe’s Leading Frozen Food Brands ~€ 2.9billion 19 NUMBER OF > 8,000 PRO-FORMA COMPANY PRODUCTION REVENUES EMPLOYEES FACILITIES 3% ORGANIC REVENUE 13% ADJUSTED EPS GROWTH PER YEAR CAGR 2017-2021 2017-2021 CAGNY 2022
Slide 6: Nomad Foods European Footprint: June 2015
Nomad Foods European Footprint JUNE 2015 Initial acquisition of the Iglo Group 7 2,800 5 €1.4bn COUNTRIES EMPLOYEES CATEGORIES TURNOVER CAGNY 2022
Slide 7: Nomad Foods European Footprint: November 2015
Nomad Foods European Footprint NOVEMBER 2015 Acquisition of Findus Group 12 4,000 5 €2bn COUNTRIES EMPLOYEES CATEGORIES TURNOVER CAGNY 2022
Slide 8: Nomad Foods European Footprint: 2018
Nomad Foods European Footprint APRIL & JULY 2018 Acquisition of Goodfella’s and Aunt Bessie’s 13 4,700 7 €2.3bn COUNTRIES EMPLOYEES CATEGORIES TURNOVER CAGNY 2022
Slide 9: Nomad Foods European Footprint: December 2020
Nomad Foods European Footprint DECEMBER 2020 Acquisition of Findus Switzerland 14 4,800 7 €2.6bn COUNTRIES EMPLOYEES CATEGORIES TURNOVER CAGNY 2022
Slide 10: Nomad Foods European Footprint: September 2021
Nomad Foods European Footprint SEPTEMBER 2021 Acquisition of Fortenova’s Frozen Food Business 22 8,000 8 €2.9bn COUNTRIES EMPLOYEES CATEGORIES TURNOVER CAGNY 2022
Slide 11: Why is Nomad Foods Unique?
Why is Nomad Foods Unique? A leader in HEALTH & SUSTAINABILITY A portfolio Accretive focused on CAPITAL FROZEN FOOD ALLOCATION
Slide 12: A Growth Strategy Built on Steady Organic Growth and Disciplined Capital Allocation
A Growth Strategy Built on Steady Organic Growth and Disciplined Capital Allocation 5-year historical performance 2017-2021 3% Effective Cost Management 13% organic 6% Revenue Maximising growth Adjusted EPS Shareholder CAGR Return 3% CAGR Opportunistic Buy Back M&A CAGNY 2022
Slide 13: A Portfolio of Frozen Food Brands Aligned with Long-Term Macro Tailwinds
A Portfolio of Frozen Food Brands Aligned with Long-Term Macro Tailwinds CONVENIENCE AND TASTE AND HEALTH AND PLANT AFFORDABILITY NUTRITION SUSTAINABILITY PROTEIN CAGNY 2022
Slide 14: Consumers Have Rediscovered Frozen Food During COVID-19
Consumers Have Rediscovered Frozen Food During COVID-19 Frozen food has outperformed More shoppers 2-Year Change in Retail Sales Value (Q3 2019 to Q3 2021) are purchasing 15% Nomad Foods products Top 5 Markets | Shoppers (Ms) 44.1 43.6 8% 7% 41.7 41.1 SAVOURY FROZEN PERISHABLE AMBIENT 2018 2019 2020
Slide 15: A Portfolio of Iconic and Market Leading Brands
A Portfolio of Iconic and Market Leading Brands CAGNY 2022
Slide 16: A Portfolio and Strategy Anchored in Key Facts About our Core Portfolio
A Portfolio and Strategy Anchored in (Our Must Win Battles) Key Facts About 70% 6% 39% our Core Portfolio: of total sales annual organic revenue growth since 2017 market share* *Does not include the 2021 acquisitions
Slide 17: Growing Contribution from Innovation as a % of Sales
Growing Contribution from 6% 8% Innovation as a % of Sales 4% 2018 2021 2025 GOAL Note: Innovation defined as new products introduced within the past two years
Slide 18: An Emerging ESG Story Supported by Strong Sustainability Platforms
An Emerging ESG Story Supported by Strong Sustainability Platforms Food Nutrition / Responsible Sustainable Plant Waste Healthy Diet Fishing Agriculture Protein CAGNY 2022
Slide 19: A Year of Numerous Sustainability Milestones
Was a Year of Numerous Sustainability Milestones Added to Dow Jones Sustainability Joined the Race to Zero Europe Index Nomad Foods achieved a score of 100% in Health & Wellbeing. CAGNY 2022
Slide 20: A Year of Numerous Sustainability Milestones
Was a Year of Numerous Sustainability Milestones Partnered with WWF Achieved 100% Renewable Electricity in manufacturing 100% Renewable electricity based on Dec 31st 2021 position excluding manufactoring sites for Findus Switzerland & Fortenova frozen food business CAGNY 2022
Slide 21: Green Cuisine is a Dynamic Driver of Growth and Value Creation
Green Cuisine is a Dynamic Driver of Growth o and Value Creation for Nomad Green Cuisine Revenues ~€ 55 million ~€ 42 million ~€ 19 million 2018 2019 2020 2021 2022 Beyond CAGNY 2022
Slide 22: Green Cuisine is Europe's Fastest Growing Frozen Meat-Free Brand
Green Cuisine is Europe’s Fastest Growing Frozen Meat-Free Brand 103% European Meat-Free Frozen Food 2 Year CAGR Growth 2020-2021 46% 31% 13% 9% 5% 0% -7% Growth rates represent retail sales value from the start of 2020 to the end of 2021 across 11 European markets where Green Cuisine is currently p
Slide 23: Financial Perspective
Financial Perspective Samy Zekhout Chief Financial Officer
Slide 24: We Achieved Another Strong Year of Growth in 2021
We Achieved Another Strong Year of Growth in 2021 3.6% Revenue 4% Adjusted EBITDA 15% Adjusted EPS Growth Growth Growth CAGNY 2022
Slide 25: 2021 Marks the Fifth Consecutive Year of Record Financial Performance
2021 Marks the Fifth Consecutive Year of Record Financial Performance Revenues Adjusted EBITDA Adjusted EPS 6% CAGR 8% CAGR 13% CAGR €2.6 bilion €487 €1.55 €1.9 milion per share bilion €325 milion €0.84 per share 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 20
Slide 26: Growth Levers
Growth Levers Organic Growth Accretive Capital Deployment FROZEN TARGETED CATEGORY CAPITAL GROWTH INVESTMENT Share M&A Repurchases MARKET STRONG SHARE CASH EXPANSION GENERATION Approximately €2.0 Billion of Capital Deployed Towards Share Repurchase and Acquisitions Since 2017 CAGNY 2022
Slide 27: M&A Criteria
M&A Criteria New Categories, Reasonable Cash Flow Countries Valuations Generative and Channels Leading Strong Strategic A Clear Path to Top Market Share and Financial and Bottom Line Rational Growth CAGNY 2022
Slide 28: A History of Strategic and Highly Accretive Acquisitions
A History of Strategic and Highly Accretive Acquisitions 2015 2018 2018 2020 2021 Acquisition for Acquisition for Acquisition for Acquisition for Acquisition for approximately approximately approximately approximately approximately €700 million €225 million €240 million €110 million €615 million CAG
Slide 29: Acquisition of Fortenova Group Frozen Food Business
Acquisition of Fortenova Group Frozen Food Business Brands with #1 Share in Attractive European Markets New to Nomad Foods Business Overview Revenue Mix • Unparalleled frozen food market leadership 13% in several European markets new to Nomad Others Foods 16% 40% 50% 50% B&H COUNTRY Ice CATEGORY Fro
Slide 30: Case Study: Evolution of the UK Market
Case Study: Evolution of the UK Market Through Successful Organic Growth, Innovation and M&A 5 Year CAGR of 11% ₤785 Million ₤ 462 Million 2016 2021 Numbers represent the retail sales value in GBP. Source: Nielsen CAGNY 2022
Slide 31: Case Study: Evolution of the UK Market Through Organic Growth, Innovation and M&A
Case Study: Evolution of the UK Market Through Successful Organic Growth, Innovation and M&A Business M&A Innovation Birds Eye Fish Fingers April 2018 July 2018 Peas & Plant Chicken & Coated Goodfella’s Aunt Bessie’s Protein Products Fish SteamFresh Acquisition Acquisition Drive and leverage Create
Slide 32: 2022: Challenging Market Environment Nomad Foods is Well Positioned to Manage
2022: We Expect to see a Challenging Market Environment that Nomad Foods is well Positioned to Manage Through Leveraging scale and reinvesting European Frozen Food behind our brands to support Market Leader longer term growth Committed to deliver our Focus on productivity long term growth strategy e
Slide 33: Initiating 2022 Guidance
Initiating 2022 Guidance Total Revenue Organic Revenue Adjusted EPS Growth Growth Growth High-single digit Low-single digit Double digit growth growth growth Adjusted EPS €1.71 - €1.75 CAGNY 2022
Slide 34: On Pace to Achieve 2025 EPS Target
On Pace to Achieve 2025 EPS Target Adjusted EPS € 2.30 10 > % $ 2.60 CAGR USD equivalent Adjusted EPS converted to USD, the currency in which Nomad Foods shares trade, for illustrative purposes this is based on a USD/EUR FX rate of $1.13. >10% CAGR based on 2020 to 2025 CAGNY 2022
Slide 35: Recap: Nomad Foods is a Uniquely Positioned Growth Company
Recap: Nomad Foods is a Uniquely Positioned Growth Company 1 European market leaders in the Frozen Food category, which is well positioned to lead on Health and Sustainability 4 Balanced contribution from organic revenue growth and contribution from strategic acquisitions 2 A highly focused portfoli
Slide 36: Thank you.
Thank you. Nomad Foods
Slide 37: Questions?
Questions?
Slide 38: Appendix
Appendix
Slide 39: Tables to Reconcile Non-IFRS Financial Measures
The following tables have been included to allow users to reconcile Non-IFRS financial measures as well as Adjusted financial information included within this presentation to reported IFRS financial measures. 1. Definitions of Non-IFRS financial measures referred to in this presentation. 2. Reconcil
Slide 40: Definitions of Non-IFRS Financial Measures
1. Definitions of Non-IFRS financial measures referred to in this presentation Non-IFRS financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have
Slide 41: Reconciliation of Reported to Organic Revenue Growth
2. Reconciliation of reported to organic revenue growth/(decline) Year on Year Growth - December 31, 2021 compared to December 31, 2020 Three months ended Twelve months ended December 31, 2021 December 31, 2021 YoY Growth YoY Growth Reported Revenue Growth 7.0% 3.6% Of which: - Organic Revenue Growt
Slide 42: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2021 As reported for the three As adjusted for the three € in millions, except per share data months ended Adjustments months ended December 31, 2021 December 31, 2021 Re
Slide 43: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (unaudited) Three months ended December 31, 2021 As reported for the a. Represents non-cash fair value uplift of inventory recorded as part of the Fortenova acquisition purchase price accounting € in millions three months en
Slide 44: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2020 As reported for the As adjusted for the € in millions, except per share data three months ended Adjustments three months ended December 31, 2020 December
Slide 45: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (audited) Three months ended December 31, 2020 As reported for the a. Expenses related to preparations for the potential adverse impacts of the United Kingdom exiting the European Union to our supply chain, such as tariffs a
Slide 46: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2021 As reported for the As adjusted for the € in millions, except per share data twelve months ended Adjustments twelve months ended December 31, 2021 December 31, 2021
Slide 47: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (unaudited) Twelve months ended December 31, 2021 As reported for the a. Represents non-cash fair value uplift of inventory recorded as part of the Findus Switzerland and Fortenova € in millions twelve months ended acquisiti
Slide 48: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2020 As reported for the As adjusted for the € in millions, except per share data twelve months ended Adjustments twelve months ended December 31, 2020 Decem
Slide 49: Reconciliation of Non-IFRS Financial Measures
3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2020 a. Expenses related to preparations for the potential adverse impacts of the United Kingdom exiting the As reported for the European Union to our supply chain, such as tariffs
Slide 50: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2019 As reported for the As adjusted for the twelve months ended twelve months ended € in millions, except per share data December 31, 2019 Adjustments Decem
Slide 51: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2019 As reported for the a. Expenses related to preparations for the potential adverse impacts of the United Kingdom exiting the European € in millions twelve months end
Slide 52: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2018 As reported for the As adjusted for the twelve months ended twelve months ended € in millions, except per share data December 31, 2018 Adjustments Decem
Slide 53: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2018 As reported for the a. Non-cash fair value uplift of inventory recorded as part of the Goodfella's Pizza and Aunt Bessie's purchase price € in millions twelve month
Slide 54: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2017 As reported for the As adjusted for the twelve months ended twelve months ended € in millions, except per share data December 31, 2017 Adjustments Decem
Slide 55: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2017 As reported for the a. Costs incurred related to enhanced control compliance procedures in territories. € in millions twelve months ended b. Costs incurred in relat
Slide 56: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2016 As reported for the As adjusted for the twelve months ended twelve months ended € in millions, except per share data December 31, 2016 Adjustments Decem
Slide 57: Reconciliation of Non-IFRS Financial Measures (continued)
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2016 As reported for the a. Elimination of costs incurred in relation to completed and potential acquisitions and one-off compliance € in millions twelve months ended co
Slide 58: Reconciliation of Net Cash Flows from Operating Activities to Adjusted Free Cash Flow
3. Reconciliation of Non-IFRS Financial Measures (continued) Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow for the Twelve months ended December 30, 2021 and the Twelve months ended December 30, 2020 Twelve months Twelve months a. Adjustment to add bac
Slide 59: Reconciliation of Net Cash Flows to Adjusted Free Cash Flow
3. Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow for the Twelve months ended December 30, 2019, 2018, 2017 & 2016 Twelve months ended Twelve months ended Tw