Nomad Foods Limited · NYSE:NOMD
Nomad Foods — CAGNY 2024
41 slides from Nomad Foods's conference presentation, Feb 22, 2024
Slide 1: CAGNY Investor Presentation
CAGNY Investor Presentation February 22, 2024
Slide 2: Stéfan Descheemaeker, Chief Executive Officer
Stéfan Descheemaeker Chief Executive Officer
Slide 3: 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 Presentation does not
Slide 4: Nomad Foods
Nomad Foods Serving the world with better food Nomad Foods CAGNY 2024 | 4
Slide 5: What We Want You to Take Away From Today
LEADING Frozen Foods Company With Uninterrupted Top-Tier Growth ACCELERATING Growth in 2024 and Beyond ENHANCING Shareholder Returns Through Strong Cashflows and Effective Capital Allocation What We Want You to Take Away From Today CAGNY 2024 | 5
Slide 6: Embracing a Growth Acceleration Mindset in 2024
Embracing a Growth Acceleration Mindset in 2024 Strong Cashflows and Balance Sheet Flexibility to Boost Shareholder Returns LEADING Frozen Foods Company With Uninterrupted Top-Tier Growth ACCELERATING Growth in 2024 and Beyond ENHANCING Shareholder Returns Through Strong Cashfl ws and Eff ctive Capi
Slide 7: Long-Term Consumer Trends Underpin Our Growth
SUSTAINABILITYTASTE AFFORDABILITYNUTRITIONCONVENIENCE Long-Term Consumer Trends Underpin Our Growth European Frozen Food Categories €57 billion Retail Sales Frozen Meat Frozen Pizza & Meals Frozen Others Frozen Fish & Seafood Frozen Vegetables & Potatoes Ice Cream Frozen Sales Vs. Other Departments
Slide 8: Nomad is One of the Largest European Frozen Food Companies
Top European Frozen Food Companies - Retail Sales (€, Billion) € 57billion Retail Sales Europe Frozen Food €4.2 billion €3.9 billion €2.6 billion €1.5 billion Nomad is One of the Largest European Frozen Food Companies... Source: NielsenIQ; Year ending December 2023; Frozen Food including Ice Cream.
Slide 9: With an Outstanding Scale and Size Advantage
~8,000 EMPLOYEES €57+ billion TAM #1 BRANDED COMPANY IN EACH OF OUR TOP 15 MARKETS €530+ million ADJUSTED EBITDA €1.60+ ADJUSTED EPS 18 PLANTS ACROSS EUROPE ~100% AVERAGE ADJUSTED CASH CONVERSION €3+ billion REVENUES 7% CAGR over the last 5 Years … With an Outstanding Scale and Size Advantage Source
Slide 10: Portfolio of Iconic Brands
Portfolio of Iconic Brands CAGNY 2024 | 10
Slide 11: Proven History of Accretive Acquisitions
Disciplined and Impactful Acquisitions Approach Complements Attractive Organic Growth Profile Acquired businesses with more than €1 Billion Sales Acquisition size: €700 million Acquisition size: €225 million Acquisition size: €240 million Acquisition size: €110 million Acquisition size: €615 million
Slide 12: Uninterrupted Track Record of Top Tier Financial and Cashflow Performance
Average Adjusted Cash Flow Conversion 2016 - 2022 ~100% Total Adjusted Free Cash Flow 2016 - 2022 €1.7+ bn Revenues 7% CAGR Adjusted EBITDA 7% CAGR Adjusted EPS 10% CAGR €1.9 billion €325 million €0.84 €1.61 €532 million €3.0 billion 2023 Consensus Estimates 202120192017 2018 2020 20222016 2023 Cons
Slide 13: Poised for Attractive Long Term Growth
Poised for Attractive Long term Growth 90-95% $1.89 - $1.95 4 - 6% growth €1.75 - €1.80 9%-12% growth 3 - 4% growth Including Positive Volume Growth Total Revenue Adjusted Cash Flow Conversion Adjusted EPSAdjusted EBITDA 2024 Guidance Signals App aling Volume-Led Growth Adjusted EBITDA, Adjusted EPS
Slide 14: Poised for Attractive Long Term Growth
Poised for Attractive Long term Growth Balanced Price and Vol/Mix Growth Revenue EBITDA EPS Cashflow 3 - 4% Revenue Growth 5 - 7% Adjusted EBITDA Growth 7 - 9% Adjusted EPS Growth 90 - 95% Adjusted Free Cashflow Conversion Enhanced Capital Allocation Expected to Amplify Organic Growth In-Line With H
Slide 15: Embracing a Growth Acceleration Mindset in 2024
Embracing a Growth Acceleration Mindset in 2024 Strong Cashflows and Balance Sheet Flexibility to Boost Shareholder Returns LEADING Frozen Foods Company With Uninterrupted Top-Tier Growth ACCELERATING Growth in 2024 and Beyond ENHANCING Shareholder Returns Through Strong Cashfl ws and Eff ctive Capi
Slide 16: Sequential Improvements Signal Positive Volume and Share Growth Ahead
Sequential Improvements Signal Positive Volume and Share Growth Ahead -2,0% -1,5% -1,0% -0,5% -0,0% Jan '23Jan '23 Nomad Volume Share Change -16,0% -12,0% -8,0% -4,0% -0,0% Nomad Volume Change Dec '23Dec '23 Poised for Positive Volume and Share Growth in 2024 Source: Factset; for 13 4-weeks periods
Slide 17: Accelerate Profitable Topline Growth Trajectory in 2024 and Beyond
Increased A&P support Strengthened RGM Enhanced data and analytics Invest in Growth Capabilities Pioneer the frozen categories Consumer-centric new products Focusing on Consumer- Centric Innovation Fewer, Bigger MWBs to focus on higher margin opportunities Leverage broad portfolio to expand into new
Slide 18: Concentrated and Bigger MWBs to Grow the Core
Examples of Our Top 20 MWBs Our Portfolio and Growth Strategy is Anchored in Our MUST WIN BATTLES Realigning MWBs to concentrate only on the biggest opportunities Focus on higher margins and profitability Receive full spectrum of support & investments Account for ~50% of our retail sales Growing ~2p
Slide 19: Cross-Pollination to Expand into New Markets and Categories
Our Broad Portfolio and Extensive Geographical Footprint Opens up New Opportunities Building Scale in Chicken in Germany, Italy & Portugal Single Serve Meals in Netherlands & UK Expand Core Fish and Veg in Adriatics, Switzerland & Spain Cross-Pollination to Expand into New Markets and Categories CAG
Slide 20: Focusing on Consumer-Centric Innovation
Implement and Launch Develop Design Discover and Define Frame the Challenge Transforming Our New Product Innovation by Adopting a More Systematic, Consumer-Centric Approach Focusing on Consumer-Centric Innovation CAGNY 2024 | 20
Slide 21: Strong, Multi Year Innovation Pipeline
Multi-Layered Technology in Premium Ice Cream Further Unlocking Happy Family Occasions Exciting New Coating Technology Crispy Seafood Creations Inspiring Veg Five Years Pipeline of New Products Innovation Strong, Multi Year Innovation Pipeline CAGNY 2024 | 21
Slide 22: Impactful Advertising and Marketing
Strong shift to digital Higher spend on retail media Launch One Nomad “Master Brand” Data-backed insights Machine learnings modeling to optimize A&P A&P spend to grow faster than topline Focus on MWBs and Growth Platforms Increase Investments Behind Growth Accelerate Data and Analytics
Slide 23: Media Interventions Fuel our Marketing Mix
Relevant Gen-Z Platforms Brand Partnerships Go to Market Models Step up investment in platforms that reach younger audiences E-sports & immersive gaming experiences Streaming services Greater affinity with brands with younger audiences Partnerships with online delivery platforms Media Interventions
Slide 24: Launching a New Life Well Fed Campaign
New Masterbrand Campaign to Leverage Brand Power and Drive Category Leadership Launching a New “Life Well Fed” Campaign
Slide 25: Samy Zekhout, Chief Financial Officer
Samy Zekhout Chief Financial Officer
Slide 26: Embracing a Growth Acceleration Mindset in 2024
Embracing a Growth Acceleration Mindset in 2024 Strong Cashflows and Balance Sheet Flexibility to Boost Shareholder Returns LEADING Frozen Foods Company With Uninterrupted Top-Tier Growth ACCELERATING Growth in 2024 and Beyond ENHANCING Shareholder Returns Through Strong Cashfl ws and Eff ctive Capi
Slide 27: Another Year of Solid Financial Results in 2023
Adjusted EPS*Organic Revenue Growth* €1.60+ €3+ billion Mid-Single Digit Growth Another Year of Solid Financial Results in 2023 *Expected Results. Adjusted EPS and Organic Revenue Growth is a non-IFRS measures. CAGNY 2024 | 27
Slide 28: Top-Tier Financial Performance
Significantly Outgrew US Food Peers Despite Facing Tougher Macro Headwinds 2018-2023 CAGR Adjusted EBITDA NomadPeer* Average 2.4% 7.2% Revenues NomadPeer* Average 3.2% 7.0% Adjusted EPS NomadPeer* Average 3.8% 6.3% Top-Tier Financial Performance *Peers: Market-cap Weighted average of B&G Foods, Bell
Slide 29: 2024 Guidance Signals Appealing Volume-Led Growth Trajectory
90-95% $1.89 - $1.95 4 - 6% growth €1.75 - €1.80 9%-12% growth 3 - 4% growth Including Positive Volume Growth Total Revenue Adjusted Cash Flow Conversion Adjusted EPSAdjusted EBITDA 2024 Guidance Signals Appealing Volume-Led Growth Trajectory Adjusted EPS, Adjusted EBITDA, Organic Revenue Growth and
Slide 30: Growth Fly-Wheel Expected to Deliver Superior Shareholder Returns
Expand Into New M arke ts an d C a te g o rie s G re a te r Scale and Operating Leverage RO I D riven C apital Allocation Higher A&P Spending In ve st In T ec hn ol og y D ata and Analytics St ro ng er P ro duc tiv ity Agenda O pe ra tio na l E xcellence Investment in G row th D rive rs Stronger Pro
Slide 31: Enhanced Focus on Productivity to Fuel Growth
Generate Higher Productivity Savings by Creating an Efficient, Simplified, and Customer-Centric Supply Chain Manufacturing Excellence Logistics Redesign Reduce Complexities Leverage Size in Procurement and Sourcing Supply-Chain Excellence Enhanced Focus on Productivity to Fuel Growth CAGNY 2024 | 31
Slide 32: A Strong Track Record of Accretive Capital Deployment
Supported by our strong cash generation and no debt maturities until 2028 New Cash Dividend Disciplined capital investments to drive organic growth Optimized net leverage More than €1 billion of share buybacks since 2016 Proven history of accretive acquisitions A Strong Track Record of Accretive Cap
Slide 33: Attractive Dividend Yield + Low Payout Ratio
Attractive Dividend Yield + Low Payout Ratio Dividend Yield Dividend Payout Ratio Flower Foods Danone Conagra Nestlé Kellanova Kraft Heinz Coca-Cola Keurig Dr Pepper Hormel PepsiCo P&G McCormick Unilever Campbell Soup General Mills Hershey Mondelez Nomad Foods Lamb Weston 35% 160%120%80%40%0% B&G Fo
Slide 34: Top-Tier Growth at Multi-Year High Valuation Discount
Nomad Peers' Weighted Average 6 10 14 20232022202120202019 20242018 18 22 Fo rw a rd P /E M ul tip le Multi-Year High Valuation Discount Attractive Organic Long-Term Growth Balanced Price and Vol/Mix Growth Revenue EBITDA EPS Cashflow 3 - 4% Revenue Growth 5 - 7% Adjusted EBITDA Growth 7 - 9% Adjust
Slide 35: What We Want You to Take Away From Today
LEADING Frozen Foods Company With Uninterrupted Top-Tier Growth ACCELERATING Growth in 2024 and Beyond ENHANCING Shareholder Returns Through Strong Cashflows and Effective Capital Allocation What We Want You to Take Away From Today CAGNY 2024 | 35
Slide 36: Thank you.
Thank you. Nomad Foods
Slide 37: Questions?
Questions? Nomad Foods
Slide 38: Appendix
Appendix Nomad Foods
Slide 39: Reconciliation of Non-IFRS Financial Measures: Contents
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 - Reconc
Slide 40: Definitions of Non-IFRS Financial Measures
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 a material effect on the Company’s reported results and, therefore, should not
Slide 41: Reconciliation to Adjusted Free Cash Flow
Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow for the years ended December 31, 2022, 2021, 2020, 2019, 2018, 2017 & 2016. a. Adjustment to add back cash flows related to exceptional items which are not considered to be indicative of our ongoing operat