Nomad Foods Limited · NYSE:NOMD
Nomad Foods — CAGNY 2021
48 slides from Nomad Foods's conference presentation, February 2021
Slide 1: CAGNY
Wie: February 17" y Nomad Foods
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: Poised to Deliver Strong Performance in 2020 and 2021
Poised to Deliver Strong Performance in 2020 and 2021 2020 2021 2 Year Preliminary Expectations Initial Guidance CAGR Total Revenue Growth 8% 3 - 5% 6 - 7% Organic Revenue Growth 9% 1 - 2% 5% Adjusted EPS Growth 10% 11 - 15% 11 - 13% Adjusted EPS, in Euros €1.35 €1.50 - €1.55 Adjusted EPS, in US Dol
Slide 4: Nomad Foods is Delivering Sustained Financial Performance
Nomad Foods is Delivering Sustained Financial Performance Revenues Adjusted EPS €2.6bn €2.5bn €1.50 - €1.55 €2.3bn €1.35 €2.2bn €1.23 €1.19 €1.9bn €2.0bn €1.00 €0.84 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Preliminary Guidance Preliminary Guidance 4
Slide 5: Nomad Foods is a Uniquely Positioned Food Company
Nomad Foods is a Uniquely Positioned Food Company Western Europe’s Frozen Food Low Leverage with Market Leader a 7% FCF Yield Active and Accretive Attractive Market Dynamics Deployment of Capital Track Record of Strong 10%+ Annual EPS Financial Performance Growth Algorithm A Long Runway for Growth I
Slide 6: A European Frozen Food Pureplay with a Long Runway for Growth
A European Frozen Food Pureplay with a Long Runway for Growth and Value Creation Core Portfolio Growth Breakthrough Innovation Strategic Acquisitions Switzerland
Slide 7: Nomad Foods is Europe's Leading Frozen Food Company
€2.5b net revenues Nomad Foods is Europe’s Leading Frozen Food Company 4 consecutive years of organic revenue growth 14 #1 primary countries across Western Europe market share 4,900 company within Western Europe employees frozen food 7
Slide 8: We are a Frozen Food Pure Play
We are a Frozen Food Pure Play Frozen Frozen Frozen Frozen Frozen Frozen Frozen Fish Vegetables Meat Substitutes Pizza Ready Meals Poultry Potatoes
Slide 9: Frozen Food is an Attractive Category
Frozen Food is an AttractiveCategory A Growing Strong Value Over-Indexed Convenient Locked Reduces Food Category Proposition to Online in Nutrients Waste
Slide 10: The Current Frozen Food Boom is Part of a Broader Consumer Behavioral Shift
The Current Frozen Food Boom is Part of a Broader Consumer Behavioral Shift With Long-Term Implications Retail Sales Growth Western Europe, 2020 12% 8% FROZEN FOOD TOTAL FOOD Working from Home Shopping Online Scratch Cooking Family Mealtime Source: Nielsen
Slide 11: Frozen Food Market Dynamics are Advantageous in Europe
Frozen Food Market Dynamics are Advantageous in Europe Europe United States #1 Market Leader Several Large Competitors Private Label Private Label Long Term Market Share Long Term Market Share Fish & Vegetables Ready Meals Source: Euromonitor 11
Slide 12: Creating Focus Through Strategic Portfolio Choices
Creating Focus Through Strategic Portfolio Choices ~70% of revenues CORE Strategic, fully funded and ~10% of revenues SECONDARY BRANDED PRODUCTS Managed for margins & cash flow accretive to growth & margins ~10% of revenues OTHER BRANDED PRODUCTS Managed for cash flow Non-retail (private label and f
Slide 13: We have a Distinct Advantage in Value-Added Frozen Food
We have a Distinct Advantage in Value-Added Frozen Food Undisputed Leadership Strong Market Share Outsized Growth Avg. Organic Revenue Growth 2017-2020 8% 94% of CORE portfolio ~30% Private Label where Nomad ranks ~50% 4% ~20% Nomad #1 Other Foods Branded MARKET POSITION CORE MARKET SHARE NOMAD TOTA
Slide 14: Leveraging Synergies Across the Fish Portfolio
Leveraging Synergies Across the Fish Portfolio Find out where your fish comes from
Slide 15: Driving Vegetable Consumption with Powerful Advertising
Driving Vegetable Consumption with Powerful Advertising 91% (+00 pp vs. YA)
Slide 16: Green Cuisine is a Dynamic Driver of Growth and Value Creation
Green Cuisine is a Dynamic Driver of Growth and Value Creation for Nomad Green Cuisine Revenues ~€ 100 + million 2018 2019 2020 2021 2022 Beyond 16
Slide 17: Green Cuisine is Europe's Fastest Growing Frozen Meat-Free Brand
Green Cuisine is Europe’s Fastest Growing Frozen Meat-Free Brand 299% European Meat-Free Frozen Food 2020 Growth, Retail Sales 65% 35% 24% 20% 15% 15% 6% -1% Private Label Growth rates represent 2020 retail sales value growth across 11 European markets where Green Cuisine is currently present. Sourc
Slide 18: Scaling Our Brands Across Multiple Growth Channels
Scaling Our Brands Across Multiple Growth Channels Traditional Retailers E-commerce Discounters International 18
Slide 19: Online Growth Exploded in 2020
Online Growth Exploded in 2020 YoY Growth in Nomad Foods Online Sales Source: Nielsen, IRI and retailer EPOS data 66% UK accounts for 2/3 of Nomad’s online revenues 12% 10% #2 Selling brand in the UK after Coca-Cola 2018 2019 2020 19
Slide 20: Our Products are Nutritious and Accessible
Our Products are Nutritious and Accessible 90 % * of Our Portfolio Qualifies as Healthier Meal Choice *90% of 2020 branded product revenues choices, excluding Spain (owing to data reliability). 20
Slide 21: Eating for the Planet
Eating for the Planet A future diet aligned ...which will reduce with maximum 1.5 degree carbon emissions global warming means... from food CO2e -60 % incl * efficiencies Fish Vegetables Plant Protein Consume 2 times Double consumption Consume a week by 2050 significantly more *Moving to a mainly pl
Slide 22: Fully aligned with the UN's Millennium Development Goals
Fully aligned with the UN's Millennium Development Goals 22
Slide 23: Select Sustainability Partnerships
Select Sustainability Partnerships 23
Slide 24: Would recommend Nomad Foods as a good place to work
#4 94% Would recommend 94% 89% Said they’re Feel energised Nomad Foods as a proud to work at to go the extra good place to work Nomad Foods mile in their job
Slide 25: Nomad's Blueprint for Superior Shareholder Value Creation
Nomad’s Blueprint for Superior Shareholder Value Creation Organic Revenue Growth Free Cash Flow Capital Allocation Frozen food 100% conversion Consolidate European category growth of net income into FCF frozen food High ROI Efficient working capital brand investments management Integrate and Breakth
Slide 26: One of Few Food Companies Delivering Sustained Organic Revenue Growth
Nomad Foods is One of Few Food Companies Delivering Sustained Annual Organic Revenue Growth Average Organic Revenue Growth 2017 – 2020 4% 0% Source: SEC Filings 26
Slide 27: Nomad has Outperformed Packaged Foods Peers
Nomad has Outperformed 27% Packaged Foods Peers CAGR 174% Total Shareholder Return Since 2017 103% 49% 38% 34% 6% 1% -3% -7% -10% -13% -51% Cumulative total shareholder return, including dividends, from January 1, 2017 through February 8, 2021. Source: Factset 27
Slide 28: A Long Term Track Record of Superior Financial Performance
A Long Term Track Record of Superior Financial Performance 2017 2018 2019 2020 2017-2020 Preliminary Average Revenue Growth 2% 11% 7% 8% 7% Organic Revenue Growth 4% 3% 2% 9% 4% Adjusted EBITDA Growth 1% 15% 15% 8% 10% Adjusted EPS Growth 19% 19% 3% 10% 13% Adjusted Free Cash Flow Conversion 133% 13
Slide 29: Nearly €1.5 Billion of Capital Deployed Since 2017
Nearly €1.5 Billion of Capital Deployed Towards Share Repurchases and Acquisitions Since 2017 Accretive Deployment of Capital Leverage1 Adjusted 2017 – 2020 2017 – 2020 Free Cash Flow Yield 2 3.6x 2.8x € 0.6 bn € 0.8 bn 7% Acquisitions Share Repurchases 2017 2020 1. Leverage defined as net debt / EB
Slide 30: European Frozen Acquisition Criteria
European Frozen Acquisition 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 30
Slide 31: Nomad Foods European Footprint
Existing Market White Space Leadership for Growth Nomad Foods European Footprint SWITZERLAND Recent acquisition BALKANS Potential next step
Slide 32: Introducing 2021 Guidance
Introducing 2021 Guidance TOTAL ORGANIC ADJUSTED EPS Revenue Growth Revenue Growth Growth Approximately Approximately Approximately 3-5% 1-2% 11-15% per share Adjusted EPS €1.50 - €1.55 $1.82 - $1.88 USD equivalent 2021 guidance does not yet reflect potential accretion that may result from exclusive
Slide 33: 2021 Growth Building Blocks
2021 Growth Building Blocks Future Capital Allocation y FX rit la Findus Switzerland Ta C lwi IT EX in ds BR Market Share International Expansion Growth Innovation Pipeline Underlying Growth Led by Green Cuisine within Core LSD% COGS INFLATION 33
Slide 34: 2021 Macro Considerations
2021 Macro Considerations Brexit Clarity FX Tailwinds LSD% COGS Inflation Free-trade Brexit deal offers Translation and transaction 2021 inflation expected clarity for the first time in 5 years benefits from a weak US dollar to be in-line with history 34
Slide 35: 2025 Financial Targets
2025 Financial Targets Revenues Adjusted EBITDA Adjusted Free Cash Flow Adjusted EPS €3B+ €600M+ €1.5B+ €2.30 €2.5B €467M €345M €1.35 2020 2025 2020 2025 2020 2025 2020 2025 2-3% organic growth MSD% base business growth 100%+ FCF conversion 10%+ Adjusted EPS CAGR 35
Slide 36: On Pace to Achieve 2025 EPS Target
On Pace to Achieve 2025 EPS Target Adjusted EPS € 2.30 10 > % $ 2.78 CAGR USD equivalent Adjusted EPS converted to USD, the currency in which Nomad Foods shares trade, for illustrative purposes and based on USD/EUR FX rate of $1.21 as of February 8, 2021.
Slide 37: Nomad Foods is a Uniquely Positioned Food Company
Nomad Foods is a Uniquely Positioned Food Company Western Europe’s Frozen Food Low Leverage with Market Leader a 7% FCF Yield Active and Accretive Attractive Market Dynamics Deployment of Capital Track Record of Strong 10%+ Annual EPS Financial Performance Growth Algorithm A Long Runway for Growth I
Slide 38: Appendix
Appendix
Slide 39: Reconciliation of Reported to Organic Revenue Growth
Reconciliation of Reported to Organic Revenue Growth FY 2020 FY 2019 FY 2018 FY 2017 YoY Growth YoY Growth YoY Growth YoY Growth Reported Revenue Growth 8.2% 7.0% 11.0% 1.5% Of which: - Organic Revenue Growth 8.7% 2.1% 2.6% 3.9% - Acquisitions 0.0% 4.9% 9.4% 0.0% - Trading Day Impact 0.4% 0.0% 0.0%
Slide 40: Reconciliation of Reported to Adjusted Financial Information 2019
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2019 Adjusted Statement of Profit or Loss (unaudited) Twelve Months Ended December 31, 2019 As reported for As adjusted for (in €m, except EPS) twelve months ended Adjustments twelve months ended De
Slide 41: EBITDA and Adjusted EBITDA 2019
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2019 EBITDA and Adjusted EBITDA (Unaudited) Twelve Months Ended December 31, 2019 Twelve months ended (in €m) December 31, 2019 a) Non-recurring expenses related to preparations for the potential ad
Slide 42: Reconciliation of Reported to Adjusted Financial Information 2018
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2018 Adjusted Statement of Profit or Loss (unaudited) Twelve Months Ended December 31, 2018 As reported for As adjusted for (in €m, except EPS) twelve months ended Adjustments twelve months ended De
Slide 43: EBITDA and Adjusted EBITDA 2018
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2018 EBITDA and Adjusted EBITDA (Unaudited) Twelve Months Ended December 31, 2018 Twelve months ended (in €m) December 31, 2018 a) Non-cash fair value uplift of inventory recorded as part of the Goo
Slide 44: Reconciliation of Reported to Adjusted Financial Information 2017
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2017 Adjusted Statement of Profit or Loss (Unaudited) Twelve Months Ended December 31, 2017 As reported for As adjusted for (in €m, except EPS) twelve months ended Adjustments twelve months ended De
Slide 45: EBITDA and Adjusted EBITDA 2017
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2017 EBITDA and Adjusted EBITDA (Unaudited) Twelve Months Ended December 31, 2017 a) Costs incurred related to enhanced control compliance procedures in territories. b) Costs incurred in relation to
Slide 46: Reconciliation of Reported to Adjusted Financial Information 2016
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2016 Adjusted Statement of Profit or Loss (Unaudited) Twelve Months Ended December 31, 2016 As reported for the As adjusted for the (in €m. except EPS) twelve months ended Adjustments twelve months
Slide 47: EBITDA and Adjusted EBITDA 2016
Reconciliation of Reported to Adjusted Financial Information for the Twelve Months Ended December 31, 2016 EBITDA and Adjusted EBITDA (Unaudited) Twelve Months Ended December 31, 2016 Twelve months ended (in €m) a) Elimination of costs incurred in relation to completed and potential December 31, 201
Slide 48: Reconciliation of 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 Twelve Twelve Twelve Twelve months ended months ended months ended months ended (in €m) December 31, December 31, December 31, December 31, 2019 2018 2017 2016 Net Cash Flows From Operating Activities 315.