Conagra Brands, Inc. · NYSE:CAG
Conagra Brands — CAGNY 2024
140 slides from Conagra Brands's conference presentation, February 2024
Slide 1: Sean Connolly, President and CEO – CAGNY 2024
SEAN CONNOLLY PRESIDENT AND CHIEF EXECUTIVE OFFICER C A G N Y 2 0 2 4 1
Slide 2: Legal Disclosure
Legal Disclosure Note on Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Reader
Slide 3: Today's Agenda
Today’s Agenda 1 The Big Picture Sean Connolly P r e s i d e n t a n d C h i e f E x e c u t i v e O ff i c e r 2 State of the Portfolio To m M c G o u g h E x e c u t i v e Vi c e P r e s i d e n t a n d C o - C h i e f O p e r a t i n g O ff i c e r 3 Modernizing the Supply Chain Ale Eboli E x e c
Slide 4: Why Conagra Is a Compelling Investment Opportunity
Why Conagra Is a Compelling Investment Opportunity We’ve curated an attractive portfolio – fueled by a 1 culture of external focus and agility 2 We are well-positioned to return to growth in 2024 3 We have meaningful margin expansion opportunities We expect strong cash flow and debt reduction near-t
Slide 5: Over the Past 8+ Years, We Architected a New Conagra Brands
Over the Past 8+ Years, We Architected a New Conagra Brands 2016-2017 2018-2019 2020-2025 Tr a n s f o r m Build Accelerate UNWIND INFUSE WIN 95 years of m o d e r n i t y, p e o p l e , p r o c e s s , in the marketplace structure and norms capabilities and culture and the workplace 5
Slide 6: Overhauled Our Portfolio, Capabilities and Culture
Overhauled Our Portfolio, Capabilities and Culture Portfolio Capabilities Competitively Advantaged Business Sustainable & Scaled Growth Model Culture 6
Slide 7: Overhauled Our Portfolio, Capabilities and Culture
Overhauled Our Portfolio, Capabilities and Culture Portfolio Capabilities Competitively Advantaged Business Sustainable & Scaled Growth Model Culture 7
Slide 8: Perpetually Reshaping Our Portfolio for Better Growth and Margins
Perpetually Reshaping Our Portfolio for Better Growth and Margins Strengthen the Businesses We Own Acquisitions Divestitures/Spins 8
Slide 9: …And We've Done a Lot
…And We’ve Done a Lot Strengthen the Acquisitions/ Divestitures/ Businesses We Own Licenses Spins Transformed Frozen Transformed Snacks Modernized Staples 9 Dolly Parton owns all rights to the Dolly™ and DOLLY PARTON™ trademarks, as well as her name, image and likeness, which are used under license
Slide 10: Overhauled Our Portfolio, Capabilities and Culture
Overhauled Our Portfolio, Capabilities and Culture Portfolio Capabilities Competitively Advantaged Business Sustainable & Scaled Growth Model Culture 10
Slide 11: We Instilled The Conagra Way Playbook
We Instilled The Conagra Way Playbook 3 Saliency Mental Relevancy Availability 2 Brick & Mortar eCommerce Physical Availability 1 Perpetual Superior Products Superior Products Modernization 11
Slide 12: Fueled by Differentiated Capabilities
Fueled by Differentiated Capabilities E N T E R P R I S E C A PA B I L I T I E S DEMAND ARTIFICIAL E-COMMERCE SCIENCE INTELLIGENCE ADVANCED INNOVATION & MODERN ANALYTICS DESIGN MARKETING 12
Slide 13: Overhauled Our Portfolio, Capabilities and Culture
Overhauled Our Portfolio, Capabilities and Culture Portfolio Capabilities Competitively Advantaged Business Sustainable & Scaled Growth Model Culture 13
Slide 14: Our Culture Is Rooted in External Focus and Agility
Our Culture Is Rooted in External Focus and Agility Relentless observation of a External dynamic consumer and Focus provocative sources of inspiration Converting insights into action Agility with the speed of an entrepreneur 14
Slide 15: We Have Become the Fourth Largest Food Company in America
We Have Become the Fourth Largest Food Company in America Food xBeverage Total U.S. Retail Sales (52 Weeks Ended January 21, 2024, in Billions) $29.4 $18.4 $15.5 $13.9 $12.3 $11.7 $11.2 $11.1 $10.5 $10.4 $9.8 $7.5 $7.2 $6.8 $5.7 15 Source: Circana POS Data, Total US-MULO+C, Syndicated Hierarchy, Edi
Slide 16: We Curated an Enviable Portfolio Anchored in Frozen and Snacks
We Curated an Enviable Portfolio Anchored in Frozen and Snacks Conagra U.S. Retail Portfolio Dollar Share Snacks 22% Frozen 45% $14B 23% Ingredients & Enhancers 10% Shelf-Stable Meals & Sides 16 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, 52 Weeks Ended January 21, 2024
Slide 17: Consumers Love Our Market-Leading Brands
Consumers Love Our Market-Leading Brands 80% of revenue from #1 or #2 brands 17 Source: Circana POS, Total US-MULO+C, Custom Conagra Hierarchy. 52 Weeks Ended January 21, 2024, 80% of portfolio dollar sales come from categories in which Conagra holds #1 or #2 branded share positions
Slide 18: Our U.S.-Centricity Enables Simplicity at Scale
Our U.S.-Centricity Enables Simplicity at Scale Net Sales Split by Geography, FY23 (Domestic vs. International) International 8% 92% Domestic 18 Source: Conagra Internal Data, Data for FY23 Note: International net sales include sales by domestic segments to customers located outside the Untied State
Slide 19: We Have Driven Growth Through Modern and Premium Innovation
We Have Driven Growth Through Modern and Premium Innovation Innovation Priorities Reinvent Extend Big Brands Into High From Legacy Growth Forms Benefits Expand Into Tap Into the Adjacent Power of Categories Licensing Dolly Parton owns all rights to the Dolly™ and DOLLY PARTON™ trademarks, as well as
Slide 20: …And That Innovation Has Delivered and Sustained…
…And That Innovation Has Delivered and Sustained… Conagra Innovation Retail Sales (Dollars in Millions) $1.6 B Launch Year $1.4 B FY23 $1.0 B FY22 FY21 $0.6 B FY20 $0.2 B FY19 FY19 FY20 FY21 FY22 FY23 20 Source: Circana POS, Total US-MULO+C, Custom Conagra Hierarchy, Conagra Fiscal Years Conagra Fis
Slide 21: …And Contributed to Our Double-Digit EPS Growth Since FY16
…And Contributed to Our Double-Digit EPS Growth Since FY16 Adjusted EPS1 Growth CAGRs (FY’16 – FY’23) +11% +5% +3% Conagra Near-In Peer Broader Peer Set Median Set Median 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP
Slide 22: Even During Volatility, Our EPS Growth Has Been Fully Competitive
Even During the Volatility of the Last Several Years, Our EPS Growth Has Been Fully Competitive Adjusted EPS1 Growth CAGRs (FY’19 – FY’23) +8% +4% +2% Conagra Near-In Peer Broader Peer Set Median Set Median 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations t
Slide 23: Overall, Since Fiscal 2015 We Have Delivered Strong TSR
Overall, Since Fiscal 2015 We Have Delivered Strong TSR Total Shareholder Return (FY’15 – Current) (1) 71% 61% 37% Conagra Near-In Peer Broader Peer Set Median Set Median NTM P / E (Consensus) 11.1x 14.1x 14.9x Source: FactSet Note: Peer figures reflect medians. Near-In Peer Set includes Campbell, G
Slide 24: Tom McGough
TOM McGOUGH E V P A N D C O - C H I E F O P E R AT I N G O F F I C E R C A G N Y 2 0 2 4 24
Slide 25: Key Messages
Key Messages 1 We compete in attractive categories 2 We have strong, category leading brands 3 We are well positioned to return to growth in 2024 25
Slide 26: What I Will Cover
What I Will Cover Portfolio Overview Building Momentum in 2024 26
Slide 27: What I Will Cover
What I Will Cover Portfolio Overview Building Momentum in 2024 27
Slide 28: Our Categories Are Growing Faster Than Overall Food
Our Categories Are Growing Faster Than Overall Food, and We Have Strong Share Positions Total U.S. Retail Sales Category Leading Brands (4-Year CAGR) +30 bps +8.0% +7.7% 80% of revenue from #1 or #2 brands Total Edible excl. Beverages Conagra Categories 28 Source: Circana POS, Total US-MULO+C, Syndi
Slide 29: Our Domains Have Clear Objectives and Growth Strategies
Our Domains Have Clear Objectives and Growth Strategies Frozen Snacks Staples Accelerate Accelerate Cash Growth Growth Generation Aggressive Distribution Focused Innovation Expansion Investments Innovation Modernization 29
Slide 30: Our Domains Have Clear Objectives and Growth Strategies
Our Domains Have Clear Objectives and Growth Strategies Frozen Snacks Staples Cash Accelerate Accelerate Generation Growth Growth Focused Aggressive Distribution Investments Innovation Expansion Modernization Innovation 30
Slide 31: Frozen Food Growth Has Significantly Outpaced Overall Food
Frozen Food Growth Has Significantly Outpaced Overall Food Department Dollar Sales Department Unit Sales (4-Year CAGR) (4-Year CAGR) +0.5% +70 +80 bps bps +8.4% +7.7% (0.3)% Edible xBev Frozen Edible xBev Frozen 31 Source: Circana POS, Total US-MULO+C, Syndicated Hierarchy, 4-Year CAGR (52 Weeks End
Slide 32: Frozen Is Structurally Advantaged for Long-Term Growth
Frozen Is Structurally Advantaged for Long-Term Growth Frozen Share of In-Home Occasions Frozen Food Tailwinds 17.8 Family Formation Convenience 17.0 Ta s t e & Q u a l i t y 16.5 16.3 16.3 Affordability Sustainability Pre-COVID 2020 2021 2022 2023 YE Feb 2020 32 Source: Circana / National Eating Tr
Slide 33: We Compete Primarily Across Three Attractive Frozen Categories
We Compete Primarily Across Three Attractive Frozen Categories Single-Serve Meals Multi-Serve Meals Ve g e t a b l e s & Pot Pies L52 Retail Sales $6.5 B $2.7 B $4.0 B 4 - Ye a r C A G R +6.1% +6.3% +2.7% 33 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, L52 Retail Sales (52 Weeks E
Slide 34: Winning in Frozen Requires Scale and Innovation
Winning in Frozen Requires Scale and Innovation Scale Innovation 34
Slide 35: We Built the Largest Frozen Food Company…
We Built the Largest Frozen Food Company… Total U.S. Frozen Branded Retail Sales (Dollars in Millions) $6,225 35 Source: Circana POS, Total US-MULO+C, Syndicated Frozen Department, 52 Weeks Ended January 21, 2024
Slide 36: …And a Top-Tier Track Record of Innovation Success
…And a Top-Tier Track Record of Innovation Success Conagra Innovation Retail Sales Conagra Innovation Retail Sales (Fiscal Year 2023) (Dollars in Millions) $1.6 B Frozen $1.4 B Launch Year 68% FY21-FY23 $1.0 B $1.6B FY19-FY20 20% $0.6 B Snacks 12% $0.2 B Staples FY19 FY20 FY21 FY22 FY23 36 Source: C
Slide 37: 10 Years Ago, Frozen Food Was Ripe for Transformation
10 Years Ago, Frozen Food Was Ripe for Transformation What We Saw What We Believed Large, but Frozen Declining Wasn’t Broken Sleepy Advantaged Incumbents Format Lack of Ripe For Innovation Innovation 37
Slide 38: Failure To Modernize Left the Frozen Section in the Cold
Failure To Modernize the Food Left the Frozen Section in the Cold Circa 2015 38
Slide 39: The Solution Was Aggressive Innovation
The Solution Was Aggressive Innovation COMPETE IN INNOVATE THROUGH ATTRACTIVE SPACES SUPERIOR DESIGN Leverage Inspired Demand Science Culinary Design To Identify Attractive Markets Distinctive Packaging Design Unlock Behavior Data To Uncover Sustainable Market Gaps Ingredients And Materials Identify
Slide 40: Consumers Responded to Our Revitalized Brands
Consumers Responded to Our Revitalized Brands - $600MM Growth $735 MM $646 MM $1,106 MM +7.3% 4-Year $ CAGR +7.4% 4-Year $ CAGR +9.1% 4-Year $ CAGR 40 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, L52 Retail Sales (52 Weeks Ended January 21, 2024), 4-Year CAGR (52 Weeks Ended Janua
Slide 41: Conagra's Innovation Transformed Category, Re-Ignited Growth
Conagra’s Innovation Transformed Category, Re-Ignited Growth Frozen Single-Serve Meals Retail Sales (% Change vs. YA) +12.0% C O N A G R A I N N O VAT I O N P R O G R A M +9.0% Category +6.0% +3.0% +0.0% (3.0)% (6.0)% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 41 Source: Circana POS, Total US-MULO+C, C
Slide 42: Frozen Meals 40-Year Growth in Consumer Usage Occasions
Frozen Meals 40-Year of Growth in Consumer Usage Occasions Frozen Meals Share of In-Home Occasions Flat Reinvigorated Occasion Growth Growth Limited Category +4% Innovation Innovation Program 4 0 - Ye a r CAGR 1993 1984 1987 1990 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 42 Source: Circana /
Slide 43: We Extended #1 Share Leadership Position Over Last Four Years
We Extended #1 Share Leadership Position Over Last Four Years Single-Serve Meals Dollar Share Single-Serve Meals Dollar Share (Fiscal Year 2023) (Change vs. 4 YA) +3.3 pts 26% 45% $6.8B +1.0 pts +6.6% Private ( 4 - Ye a r 4% Label CAGR) 2% All Other (0.0) pts Private Competitors Label 23% All Other
Slide 44: We Emerged From Inflation Super-Cycle With Higher Volumes…
We Emerged From Inflation Super-Cycle With Higher Volumes… Frozen Single-Serve Meals Volume Sales Conagra Frozen Single-Serve Meals (% Change FY23 vs. FY19) Price per Volume (% Change vs. YA) +1.8% +15.1% +33% (1.5)% +11.4% (3.3)% All Other Competitors Private Label (8.0)% (15.2)% +3.6% +3.0% (34.0)
Slide 45: …And Higher Share of Shelf Translating Into Volume Share Gains
…And Higher Share of Shelf Translating Into Volume Share Gains Distribution Share of Single-Serve Meals Unit Share of Single-Serve Meals (Point Change FY23 vs. FY19) (Point Change FY23 vs. FY19) +4.8 pts +4.4 pts (2.0) pts (2.2) pts (2.6) pts (3.9) pts 45 Source: Circana POS, Total US-MULO+C, Conagr
Slide 46: We Are Posting Record Shares While Navigating Macro Environment
We Are Posting Record Shares While Navigating Macro Environment Conagra Frozen Single-Serve Meals Unit Share of Category 54.0% Enhanced Merchandising 52.0% 50.8% 51.0% 50.0% 49.5% +1.8 pts 49.0% +1.6 pts vs. YA vs. YA +0.5 pts 47.9% 48.0% +0.4 pts vs. YA vs. YA NC 46.0% vs. YA 44.0% 42.0% 40.0% Q3 F
Slide 47: Frozen Meals Maintain Relevance As Consumer Needs Evolve
Frozen Meals Maintain Relevance As Consumer Needs Evolve Portion Control +8% GLP-1 Adopters increased buy rate of Nutritionally Dense Better-For-You Single-Serve Meals Protein-Forward 47 Source: Numerator Insights, Total Commerce Panel, GLP-1 Target Groups, GLP-1 Adopters defined as using GLP-1 drug
Slide 48: Our Domains Have Clear Objectives and Growth Strategies
Our Domains Have Clear Objectives and Growth Strategies Frozen Snacks Staples Accelerate Accelerate Cash Growth Growth Generations Aggressive Distribution Focused Innovation Expansion Investments Innovation Modernization 48
Slide 49: Strong Scale Portfolio of Leading Brands in Attractive Spaces
Strong Scale Portfolio of Leading Brands in Attractive Spaces Permissible Snacks Sweet Snacks Pudding & Baked Meat Snacks Seeds Popcorn Hot Cocoa Gelatin Goods $2.2 BILLION $813 MILLION 49 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, 52 Weeks Ended January 21, 2024, Note: Baked Go
Slide 50: Our Largest Snacking Categories Growing Comparable to Overall Snacking
Our Largest Snacking Categories Growing Comparable to Overall Snacking Snacking Categories (Dollar Sales, 4-Year CAGR) +8.3% +7.9% +7.8% +7.7% Total Snacks Popcorn Meat Snacks Sweet Treats 50 Source: Circana POS, Total US-MULO+C, Total Snacks (Syndicated), Popcorn, Meat Snacks, Sweet Treats (Conagra
Slide 51: We Have High Market Shares in Key Category Segments
We Have High Market Shares in Key Category Segments Snacking Segments Conagra Dollar Share of Category Microwave Sunflower Shelf Stable Meat Sticks Hot Cocoa Popcorn Seeds Pudding & Gelatin 50% 55% 58% 40% 85% 51 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, 52 Weeks Ended January
Slide 52: We Built Scale Positions in Fast-Growing Meat Snacks and Popcorn
We Built Scale Positions in Fast-Growing Meat Snacks and Popcorn Conagra Meat Snacks Retail Sales Conagra Popcorn Retail Sales (Dollars in Millions) (Dollars in Millions) $1,066 +11% CAGR $977 $858 +9% CAGR $853 $773 $773 $731 $694 $675 $593 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 52 Sourc
Slide 53: Our Categories Are Better Insulated Against Caloric Decline Headwinds
Looking Forward, Our Categories Are Better Insulated Against Headwinds Driven by Caloric Decline Buy Rate Differential between Our Snacking Core GLP-1 Users and Non-Users +10% +5% +0% (5)% (6)% (8)% (11)% (17)% Higher Risk Higher Opportunity 53 Source: Numerator Insights, Total Commerce Panel, GLP-1
Slide 54: Our Domains Have Clear Objectives and Growth Strategies
Our Domains Have Clear Objectives and Growth Strategies Frozen Snacks Staples Accelerate Accelerate Cash Growth Growth Generation Aggressive Distribution Focused Innovation Expansion Investments Innovation Modernization 54
Slide 55: Center Store Staples Play Leading Role in At-Home Meals
Center Store Staples Play Leading Role in Preparing At-Home Meals Annual Eatings per Capita Staples Category Retail Sales Sourced From Center of Store/Staples (Dollars in Billions) 580 45% $60.7 560 of all meal +7% CAGR occasions 540 $53.9 520 $52.4 $52.5 500 480 $45.9 460 440 420 400 Pre-COVID 2020
Slide 56: Conagra Staples Are Category Leading Brands
Conagra Staples Are Category Leading Brands 73% of revenue from #1 or #2 brands 87% Household Penetration Source (Right): Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, 73% of Conagra Staples portfolio dollar sales come from categories in which Conagra holds #1 or #2 share positions, 56 exc
Slide 57: What I Will Cover
What I Will Cover Portfolio Overview Building Momentum in 2024 57
Slide 58: Where Things Stand Today
Where Things Stand Today Industry volume recovery elongated Top-line progress despite challenging macro environment Robust brand building investments in place 58
Slide 59: At-Home Meals Remain Well-Positioned…
At-Home Meals Remain Well-Positioned… Quarterly Share of Meal Occasions Cost per Eating Occasion Sourced From Home/Retail 25B $7.58 Additional Meals 4.2x Sourced From Home 86% 84% $1.81 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4
Slide 60: …And Volume Trends Are Recovering Sequentially
…And Volume Trends Are Recovering Sequentially Conagra Volume Sales Performance (Periods Ended February 4, 2024) +0.5% (2.7)% (5.6)% Latest 52 Weeks Latest 13 Weeks Latest 4 Weeks 60 Source: Circana Weekly Syndicated Model, Total US-MULO+C, Syndicated Hierarchy, Total Edible excluding Beverages and
Slide 61: Robust Brand Building Investments
Robust Brand Building Investments DISCIPLINED I N N O VAT I O N ADVERTISING MERCHANDISING 61
Slide 62: Robust Brand Building Investments
Robust Brand Building Investments DISCIPLINED I N N O VAT I O N ADVERTISING MERCHANDISING 62
Slide 63: Robust Brand Building Investments: Merchandising
Robust Brand Building Investments: Merchandising Higher Quality Reinvest in Supply Feature and Display Constrained Items 63
Slide 64: Robust Brand Building Investments
Robust Brand Building Investments DISCIPLINED I N N O VAT I O N ADVERTISING MERCHANDISING 64
Slide 65: Leveraging Portfolio Breadth: $845MM Platform
LEVERAGING PORTFOLIO BREADTH $845MM PLATFORM UNLOCKED LUNCH OCCASION 65 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, Total Conagra Single-Serve Meals Bowls, 52 Weeks Ended December 24, 2023
Slide 66: Reinvigorate Dinner Occasions
REINVIGORATE DINNER OCCASIONS NEW DINNER PLATFORM MULTI-COMPONENTS | MODERN TWISTS 66
Slide 67: Elevated Favorites
ELEVATED FAVORITES NEW DINNER PLATFORM MULTI-COMPONENTS | HIGH PROTEIN 67
Slide 68: Combos & Duos
RESTAURANT INSPIRED COMBOS & DUOS HEARTY APPETITES | HIGH PROTEIN 68
Slide 69: Culinary-Inspired
CULINARY-INSPIRED NEW DINNER PLATFORM MULTI-COMPONENTS | MODERN TWISTS 69
Slide 70: Bertolli Oven Meals
PREMIUM ITALIAN BERTOLLI OVEN MEALS CULINARY-INSPIRED RECIPES 70
Slide 71: Bertolli Appetizers
ELEVATED ITALIAN APPETIZERS BERTOLLI APPETIZERS RESTAURANT INSPIRED RECIPES 71
Slide 72: Chef Boyardee Skillets
MODERNIZE ICONIC BRAND CHEF BOYARDEE SKILLETS FAMILY MEAL OCCASIONS 72
Slide 73: Frozen Potato Sides
CRAVEABLE POTATOES MADE EASY FROZEN POTATO SIDES $3.5 BILLION CATEGORY, +18% 4-YEAR CAGR 73 Source: Circana POS, Total US-MULO+C, Syndicated Hierarchy, L52 Retail Sales (52 Weeks Ended January 21, 2024), 4-Year CAGR (52 Weeks Ended January 26, 2020 vs. January 21, 2024)
Slide 74: Vegetable Sides
CHEF-INSPIRED VEGETABLE SIDES SAUCED & SEASONED VEGGIES: $645MM, +11% 4-YEAR CAGR 74 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, L52 Retail Sales (52 Weeks Ended January 21, 2024), 4-Year CAGR (52 Weeks Ended January 26, 2020 vs. January 21, 2024)
Slide 75: Premium Vegetable Sides
EXQUISITE QUALITY PREMIUM VEGETABLE SIDES INCREMENTAL, YOUNGER HOUSEHOLDS 75
Slide 76: Mega Chicken Filets
QSR-INSPIRED RECIPES MEGA CHICKEN FILETS +33% vs. 4YA CHICKEN SANDWICH MENU GROWTH 76 Source: Datassential Menu Trends, US Chains & Independents, 12 Months Ended 2019 vs. 12 Months Ended 2023
Slide 77: Breakfast Handhelds
CHANNEL EXPANSION BREAKFAST HANDHELDS SANDWICH BROS. +17% 4-YEAR CAGR 77 Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, Total Sandwich Bros. Brand, 4-Year CAGR (52 Weeks Ended January 26, 2020 vs. January 21, 2024)
Slide 78: Shark Bites
KID FUN | NEW FORMS SHARK BITES INCREMENTAL HOUSEHOLDS 78
Slide 79: Frozen Novelties
EXPAND INTO ADJACIENCIES FROZEN NOVELTIES $7.6B SPACE WITH +10% 4-YEAR CAGR 79 Source: Circana POS, Total US-MULO+C, Syndicated Hierarchy, L52 Retail Sales (52 Weeks Ended January 21, 2024), 4-Year CAGR (52 Weeks Ended January 26, 2020 vs. January 21, 2024)
Slide 80: Via Price-Pack Architecture
INCREASE PHYSICAL AVAILABILITY VIA PRICE-PACK ARCHITECTURE M U LT I - S E R V E SINGLE-SERVE GROWTH IN CENTER STORE F R O N T E N D E X PA N S I O N 80
Slide 81: Popcorn Seasonings
CATEGORY +18% 4-YEAR CAGR POPCORN SEASONINGS DROVE 88% OF CATEGORY GROWTH 81 CINNABON® and the Cinnabon logo are registered trademarks of Cinnabon Franchisor SPV LLC. ©2023; The Buffalo Wild Wings marks and logo are used with permission of Buffalo Wild Wings, Inc. Source: Circana POS, Total US-MULO+
Slide 82: Hot Chocolate Bombs
NEW SEASONAL FORM HOT CHOCOLATE BOMBS REAL MILK CHOCOLATE | MARSHMALLOW EXPLOSION 82
Slide 83: Vlasic Pickle Balls
FLAVOR FORWARD VLASIC PICKLE BALLS PICKLE FLAVORED SNACKS +14% vs. YA 83 Note: For placement only, packaging under development; subject to change. Source: Circana POS, Total US-MULO+C, Syndicated Hierarchy, 52 Weeks Ended December 24, 2023
Slide 84: Fire Fries
FIERY HOT CRUNCHY SNACK FIRE FRIES TASTY SNACK AT A VALUE 84
Slide 85: Provocative Licensing
BOLD FLAVORS PROVOCATIVE LICENSING CRUNCHY WITH A KICK 85 Frank’s RedHot® is a registered trademark of French’s Food Company, LLC, licensed to Conagra G&S (PF)
Slide 86: Hottest Ro*Tel Ever
PROVOCATIVE FLAVOR HOTTEST RO*TEL EVER GHOST PEPPER RETAIL SALES +15% vs. YA 86 Note: Packaging under development; subject to change. Source: Circana Panel, Total US-MULO+C, Syndicated Hierarchy, 52 Weeks Ended November 28, 2023
Slide 87: Air Fryer Spray
NEW OCCASION AIR FRYER SPRAY AIR FRYERS IN 63% OF HOMES 87 Source: Circana / Kitchen Audit, March 2023
Slide 88: Famous Wendy's Chili
#1 NEW CHILI LAUNCH FAMOUS WENDY’S® CHILI DROVE 84% OF CATEGORY GROWTH 88 The Wendy’s name and design and Cameo design are registered trademarks of Quality Is Our Recipe, LLC, used with permission Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy, #1 New Chili Launch and 84% of Category
Slide 89: Slide 89
Slide 90: Expanding Dolly Partnership
#1 NEW BAKING PLATFORM EXPANDING DOLLY PARTNERSHIP AUTHENTIC SOUTHERN RECIPES 90 Dolly Parton owns all rights to the Dolly™ and DOLLY PARTON™ trademarks, as well as her name, image and likeness, which are used under license by Conagra® Source: Circana POS, Total US-MULO+C, Conagra Custom Hierarchy,
Slide 91: Expanding Dolly Partnership
EXPANDING DOLLY PARTNERSHIP FROM THE BAKING AISLE TO THE FREEZER 91 Dolly Parton owns all rights to the Dolly™ and DOLLY PARTON™ trademarks, as well as her name, image and likeness, which are used under license by Conagra® Note: Packaging under development; subject to change.
Slide 92: Robust Brand Building Investments
Robust Brand Building Investments DISCIPLINED I N N O VAT I O N ADVERTISING MERCHANDISING 92
Slide 93: Healthy Choice Is #1 Better-For-You Brand
Healthy Choice Is #1 Better-For-You Brand Better-For-You Single-Serve Meals Dollar Share Better-For-You Single-Serve Meals Dollar Share (Fiscal Year 2023) (Change vs. 4 YA) +6.7 pts 25% 32% +2.6 pts $2.4B +1.0 pts +3.4% ( 4 - Ye a r All Other CAGR) Competitors 20% 6% All Other Competitors 17% (4.1)
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Slide 95: Vegetables Are a Large Addressable Market
Vegetables Are a Large Addressable Market Vegetables Dollar Share Vegetables are consumed at 30 billion meal occasions annually Fresh Canned 13% 76% $30.7B 11% Frozen Side Dish Ingredient 21B occasions 9B occasions 95 Source: (Left) Circana / National Eating Trends®; Sourced from Home/Retail, 12 Mon
Slide 96: Slide 96
Slide 97: Slide 97
Slide 98: Key Messages
Key Messages 1 We compete in attractive categories 2 We have strong, category leading brands 3 We are well positioned to return to growth in 2024 98
Slide 99: Ale Eboli
ALE EBOLI E V P A N D C H I E F S U P P LY C H A I N O F F I C E R C A G N Y 2 0 2 4 99
Slide 100: Key Messages
Key Messages On-track to deliver our $1 Billion cost savings commitment 1 made in our 2022 Investor Day Supply Chain is well-positioned to drive margin 2 expansion while providing world-class customer service 3 We are building a Digitally Connected Supply Chain 100
Slide 101: On-Track To Deliver Our $1 Billion Cost Savings Commitment
On-Track To Deliver Our $1 Billion Cost Savings Commitment SERVICE COST WORKING L E V E L S (1) S AV I N G S (2) C A P I TA L (3) +16 Fill Rate $650 Cost Savings pts MM -6 Days of Inventory Days Outstanding +10 On-Time Delivery 3.7% Savings % of Total Costs pts (1) Service Level Improvement is over
Slide 102: Conagra's Digitally Connected Supply Chain
Conagra’s Digitally Connected Supply Chain 1 2 3 Connected Connected Connected Shop Floor Network People 102
Slide 103: Connected Shop Floor
Conagra’s Digitally Connected Supply Chain: Connected Shop Floor 1 2 3 Connected Connected Connected Shop Floor Network People 103
Slide 104: Connected Shop Floor: Building Our Factories of the Future
Connected Shop Floor: Building Our Factories of the Future Line Materials Performance Connectivity Efficiency Management 104
Slide 105: Connected Shop Floor: Line Connectivity
Connected Shop Floor: Line Connectivity Line Connectivity Sensors on all equipment Real-time connectivity to the Cloud Image processing implemented on critical lines 105
Slide 106: Connected Shop Floor: Materials Efficiency
Connected Shop Floor: Materials Efficiency Materials Efficiency Precise and immediate identification of source of losses Materials waste reduction 106
Slide 107: Connected Shop Floor: Performance Management
Connected Shop Floor: Performance Management Performance Management Instant availability and visibility of plant-wide performance More efficient resource allocation and expertise deployment 107
Slide 108: Cost Savings in Manufacturing
Cost Savings in Manufacturing 9 $160MM Sites Implemented FY23 – FY24E 13 sites by FY26 Manufacturing Implementation Savings Roadmap 108
Slide 109: Connected Network
Conagra’s Digitally Connected Supply Chain: Connected Network 1 2 3 Connected Connected Connected Shop Floor Network People 109
Slide 110: Connected Network: Realizing Value From End-to-End Integration
Connected Network: Realizing Value From End-to-End Seamless Integration Network Customer Supplier Agility Integration Integration 110
Slide 111: Connected Network: Network Agility
Connected Network: Network Agility Network Agility Improved forecast accuracy through AI/ML Demand-driven planning process Digital twins to compress innovation time to market 111
Slide 112: Connected Network: Customer Integration
Connected Network: Customer Integration Customer Integration Leveraging customer data Consolidation and automation of warehousing network Transportation optimization to reduce traveled miles 112
Slide 113: Connected Network: Supplier Integration
Connected Network: Supplier Integration Supplier Integration Materials strategy to maximize resiliency and efficiency Commodity management Advanced technology driving granular and accurate visibility of cost drivers 113
Slide 114: Connected Network: Realizing Value From End-to-End Integration
Connected Network: Realizing Value From End-to-End Seamless Integration +16 pts FY23 – FY24E Fill Rate (1) $120MM $370MM FY23 – FY24E FY23 - FY24E -6 Days Savings Savings Days Inventory Outstanding (2) Network Logistics Materials Agility Savings Savings (1) Service Level Improvement is over FY23 and
Slide 115: Connected People
Conagra’s Digitally Connected Supply Chain: Connected People 1 2 3 Connected Connected Connected Shop Floor Network People 115
Slide 116: Connected People: Learn, Unlearn, and Relearn
Connected People: Learn, Unlearn, and Relearn Tech and Data Digitized Leadership Infrastructure Front Line Development 116
Slide 117: Connected People: Tech and Data Infrastructure
Connected People: Tech and Data Infrastructure Te c h a n d D a t a Full ERP integration complete Infrastructure Advanced applications across all Supply Chain functions Data lake fully implemented AI/ML application on key use cases 117
Slide 118: Connected People: Digitized Front Line
Connected People: Digitized Front Line Digitized Front Line Digital devices to enable quicker decision making Productivity acceleration through digital literacy programs 118
Slide 119: Connected People: Leadership Development
Connected People: Leadership Development Leadership Development Supply Chain Academy Manufacturing Leadership Development Program Supply Chain Early Career Program 119
Slide 120: Conagra's Digitally Connected Supply Chain
Conagra’s Digitally Connected Supply Chain 1 2 3 Connected Connected Connected Shop Floor Network People Line Materials Performance Network Customer Supplier Tech & Data Digitized Leadership Connectivity Efficiency Management Agility Integration Integration Infrastructure Front Line Development 120
Slide 121: We Will Continue To Capture Value From Our Digitally Connected Supply Chain
We Will Continue To Capture Value From Our Digitally Connected Supply Chain SERVICE COST WORKING L E V E L S (1) S AV I N G S (2) C A P I TA L (3) Days of Inventory Fill Rate Cost Savings Outstanding 98% ~4%+ +2 $650MM in +6 pts Savings pts -6 Days -3 +10 Days/ pts Year FY23 FY24 Ambition FY23 FY24
Slide 122: Dave Marberger
DAVE MARBERGER EVP AND CHIEF FINANCIAL OFFICER C A G N Y 2 0 2 4 122
Slide 123: Conagra Approach to Creating Value
Conagra Approach to Creating Value C onagr a Way Operational Generate Reinvest in Deliver P l a y b o o k To Efficiency & Strong Priority Strong TSR Drive Growth Productivity Operating Areas To I m p r o v e Cash Flow Margins 123
Slide 124: Strong Financial Performance Since Transforming Into a Pure Play Branded Food Company
Strong Financial Performance Since Transforming Into a Pure Play Branded Food Company Net Sales Adj. EPS1 Adj. EBITDA1 & Margin1 Dividend per Share2 +57% +59% +62% +44% $2.77 $12.3B $1.30 20.5% $0.90 $7.8B $1.74 19.9% 19.9% $2.5B 20.5% $1.6B FY17 FY23 FY17 FY23 19.9% FY17 FY23 FY17 FY23 124 1. Non-G
Slide 125: FY24 H1 Performance Summary
FY24 H1 Performance Summary Dollars in Millions, except per share data Increase/(Decrease) H1 vs. YA Reported Net Sales $6,112 (1.7)% Organic Net Sales1 Growth (1.9)% Adj. Gross Margin1 27.2% +59 bps A&P as % of NS 2.1% (12) bps Adj. SG&A1 as % of NS 8.8% (11) bps Adj. Op. Profit1 995 +3.5% Adj. Op.
Slide 126: Reaffirming FY24 Guidance
Reaffirming FY24 Guidance1 Guidance Organic Net Sales1 Growth (vs. FY23) (1)% to (2)% Adj. Operating Margin1 ~15.6% Adj. EPS1 $2.60 to $2.65 Net Leverage Ratio1 ~3.55x 126 1. Forward-looking non-GAAP financial measure. See the appendix for more information
Slide 127: Balanced Capital Allocation Approach
Balanced Capital Allocation Approach Business Investment Disciplined M&A Targeted and prioritized Based on strategic and investment to drive returns. financial fit. Debt Reduction Dividends & Buybacks Net leverage ratio1 target of 3.0x Strong dividend payout and and maintain solid investment opportu
Slide 128: H1 Free Cash Flow Conversion Accelerated
H1 Free Cash Flow Conversion Accelerated and is Expected to Remain Strong Going Forward H1 FCF1 Conversion FY FCF2 Conversion ~100% 97% 47% 35% 25% 16% 1% FY19 FY20 FY21 FY22 FY23 FY24 FY24 Full Year Estimate 128 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliat
Slide 129: Free Cash Flow Yield Is Top Within Peer Set
Free Cash Flow Yield Is Top Within Peer Set LTM FCF Yield Conagra 7.4% Competitor A 7.1% Competitor B 6.9% Competitor C 6.2% Competitor D 5.3% Competitor E 4.6% 129 Source: FactSet. Latest Twelve Months free cash flow divided by current market capitalization as of January 23, 2024. Note: Competitors
Slide 130: Long-Term Financial Algorithm
Long-Term Financial Algorithm Metric Target Organic Net Sales Growth1 Low Single Digits Adj. Operating Margin1 Mid to High Teens Adj. Diluted EPS1 from Cont. Ops. Growth Mid to High Single Digits Cash Flows from Operations > $1.2 billion annually CapEx % of Net Sales ~4% to 5% Dividend Payout Ratio
Slide 131: Why Conagra is a Compelling Investment Opportunity
Why Conagra is a Compelling Investment Opportunity We’ve curated an attractive portfolio – fueled by a 1 culture of external focus and agility 2 We are well-positioned to return to growth in 2024 3 We have meaningful margin expansion opportunities We expect strong cash flow and debt reduction near-t
Slide 132: Appendix
APPENDIX 4, Vy CrFa CONAGRA BRANDS-
Slide 133: Notes on Non-GAAP Financial Measures
Notes on Non-GAAP Financial Measures This document includes certain non-GAAP financial measures. Management considers GAAP financial measures as well as such non-GAAP financial information in its evaluation of the company’s financial statements and believes these non-GAAP financial measures provide
Slide 134: Reconciliation of FY16 to FY23 Adj. EPS & CAGR
Reconciliation of FY16 to FY23 Adj. EPS & CAGR FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Diluted EPS from income attributable to Conagra Brands, Inc common stockholders $ 0.29 $ 1.25 $ 1.95 $ 1.53 $ 1.72 $ 2.66 $ 1.84 $ 1.42 Restructuring plans 0.41 0.09 0.07 0.31 0.22 0.12 0.08 0.02 Acquisitions and
Slide 135: Reconciliation of FY17 and FY23 Adj. EBITDA & Margin
Reconciliation of FY17 and FY23 Adj. EBITDA (in millions) & Margin FY17 FY23 Net income attributable to Conagra Brands, Inc. $ 639.3 $ 683.6 Less: Income from discontinued operations, net of tax and noncontrolling interest 95.2 — Add Back: Income tax expense 254.7 218.7 Income tax expense attributab
Slide 136: Reconciliation of Q2 FY24 YTD Organic Net Sales & YOY Change
Reconciliation of Q2 FY24 YTD Organic Net Sales (in millions) & YOY Change Q2 FY24 YTD Total Conagra Brands Net Sales $ 6,112.1 Impact of foreign exchange (13.9) Organic Net Sales $ 6,098.2 Year-over-year change - Net Sales (1.7)% Impact of foreign exchange (pp) (0.2) Organic Net Sales (1.9)% Volume
Slide 137: Reconciliation of Q2 FY24 YTD Adj. Gross Margin, Adj. Net Income, Adj. EPS
Reconciliation of Q2 FY24 YTD Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income (in millions), Adj. EPS & YOY Change 1. Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, ne
Slide 138: Reconciliation of Q2 FY23 YTD Adj. Gross Margin, Adj. Net Income, Adj. EPS
Reconciliation of Q2 FY23 YTD Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income (in millions) & Adj. EPS 1. Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removi
Slide 139: Reconciliation of Q2 FY24 YTD EBITDA & YOY Change
Reconciliation of Q2 FY24 YTD EBITDA (in millions) & YOY Change 139
Slide 140: Reconciliation of Q2 FY19 YTD to Q2 FY24 YTD Free Cash Flow
Reconciliation of Q2 FY19 YTD to Q2 FY24 YTD Free Cash Flow (in millions), Free Cash Flow YOY Change & Conversion Rate Q2FY19 YTD Q2FY20 YTD Q2FY21 YTD Q2FY22 YTD Q2FY23 YTD Q2FY24 YTD Net income attributable to Conagra Brands, Inc. $ 309.8 $ 434.3 $ 707.9 $ 510.9 $ 304.4 $ 605.9 Restructuring plans