Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q4 2020 Earnings Presentation
33 slides from Nomad Foods's earnings presentation, Feb 26, 2021
Slide 1: Fourth Quarter 2020 Earnings Results
Fourth Quarter 2020 Earnings Results February 25, 2021
Slide 2: Disclaimer
Disclaimer Certain statements and matters discussed in this Presentation, as well as the accompanying oral presentation, may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "aim", "anticipate", "bel
Slide 3: Fourth Quarter 2020 Highlights
Fourth Quarter 2020 Highlights ORGANIC GROSS Adjusted Adjusted Revenue Growth Margin EBITDA EPS 9.5% 160BPS €119M €0.38 +8.6% volume/mix YoY expansion Includes €10mn of 19% YoY growth +0.9% price incremental A&P Exceeded guidance provided on December 4, 2020 3
Slide 4: Full Year 2020 Highlights
Full Year 2020 Highlights Total Adjusted Adjusted Adjusted Revenues EBITDA EPS Free Cash Flow €2.52B €467M €1.35 €345M $3.07B $570M $1.65 $421M USD equivalent USD equivalent USD equivalent USD equivalent 8.7% 8% 10% 131% organic growth growth growth conversion Full Year 2020 figures converted to USD
Slide 5: Fourth Quarter and Full Year 2020 Highlights
Fourth Quarter and Full Year 2020 Highlights Q4’20 organic revenue growth of 9.5%, above prior guidance of high-single digit growth Q4’20 Adjusted EBITDA exceeded guidance despite a 30% increase in Advertising & Promotion to fuel new consumer retention and brand building initiatives for 2021 G
Slide 6: Committed to Delivering Sustained Financial Performance
Committed to Delivering Sustained Financial Performance Revenues Adjusted EPS € 2.6bn € 2.5bn €1.50 - €1.55 € 1.35 € 2.3bn € 2.2bn € 1.19 € 1.23 € 2.0bn € 1.00 € 1.9bn € 0.84 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Guidance Guidance 6
Slide 7: A European Frozen Food Pureplay with A Long Runway for Growth and Value Creation
A European Frozen Food Pureplay with A Long Runway for Growth and Value Creation Core Portfolio Growth Breakthrough Innovation Strategic Acquisitions 7
Slide 8: Fourth Quarter 2020 Income Statement Highlights
Fourth Quarter 2020 Income Statement Highlights (in €m unless otherwise noted) 4Q 2020 4Q 2019 YoY Change Revenue €658 €628 4.7% Organic revenue growth 9.5% Gross profit 207 188 10% Gross margin 31.5% 29.9% 160 bp Adjusted operating expense (104) (90) 15% Depreciation & amortization 16 18 (11)% Adju
Slide 9: Full Year 2020 Free Cash Flow Highlights
Full Year 2020 Free Cash Flow Highlights 12M ended 12M ended (in €m unless otherwise noted) December 31, 2020 December 31, 2019 Adjusted EBITDA 467 432 Change in working capital 96 (44) Capital expenditures1 (59) (47) Cash taxes (83) (46) Cash interest & other2 (76) (67) Adjusted free cash flow €345
Slide 10: 2021 Guidance Projects Another Year of 10%+ Adjusted EPS Growth
2021 Guidance Projects Another Year of 10%+ Adjusted EPS Growth TOTAL ORGANIC ADJUSTED EPS Revenue Growth Revenue Growth Growth Approximately Approximately Approximately 3 - 5% 1 - 2% 11 - 15% Adjusted EPS €1.50 - 1.55 $1.83 - 1.89 USD equivalent 2021 Guidance figures converted to USD, the currency
Slide 11: 2021 Guidance
2021 Guidance Expect to Achieve a 5th Consecutive Year of Organic Revenue, Adjusted EBITDA and Adjusted EPS Growth 2017 2018 2019 2020 2021 2019 – 2021 actual actual actual actual guidance CAGR Revenue Growth 2% 11% 7% 8% 3 - 5% 5 - 6% Organic Revenue Growth 4% 3% 2% 9% 1 - 2% 5% Adjusted EBITDA Gro
Slide 12: 2021 Growth Building Blocks
2021 Growth Building Blocks Future Capital Allocation Findus Switzerland Market Share International Expansion Growth Innovation Pipeline Underlying Growth Led by Green Cuisine within Core LSD% COGS INFLATION 12
Slide 13: Questions?
Questions?
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of 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 16: 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 17: Reconciliation of reported to organic revenue growth
2. Reconciliation of reported to organic revenue growth Year on Year Growth – December 31, 2020 compared with December 31, 2019 Three months ended Twelve months ended December 31, 2020 December 31, 2020 YoY Growth YoY Growth Reported Revenue Growth 4.7% 8.2% Of which: - Organic Revenue Growth 9.5% 8
Slide 18: Reconciliation of reported to organic revenue growth FY2019-FY2017
2. Reconciliation of reported to organic revenue growth Year on Year Growth – FY2019, FY2018 and FY2017 FY2019 FY2018 FY2017 YoY Growth YoY Growth YoY Growth Reported Revenue Growth 7.0% 11.0% 1.5% Of which: - Organic Revenue Growth 2.1% 2.6% 3.9% - Acquisitions 4.9% 9.4% 0.0% - Trading Day Impact 0
Slide 19: Adjusted Statement of Profit or Loss, Q4 2020
3. Reconciliation of Non-IFRS Financial Measures Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2020 As reported for the three months As adjusted for the three months € in millions, except per share data ended December 31, 2020 Adjustments ended December 31, 2020 Re
Slide 20: EBITDA and Adjusted EBITDA, Q4 2020
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Three months ended December 31, 2020 As reported for the a. Expenses associated with the integration of the Goodfella's Pizza and Aunt Bessie's businesses which were € in millions three months ended acq
Slide 21: Adjusted Statement of Profit or Loss, Q4 2019
3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2019 As reported for the three months As adjusted for the three months € in millions, except per share data ended December 31, 2019 Adjustments ended December
Slide 22: EBITDA and Adjusted EBITDA, Q4 2019
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Three 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 Union € in millions three months
Slide 23: Adjusted Statement of Profit or Loss, FY2020
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 twelve months ended December twelve months ended December € in millions, except per share data 31, 2020 Adjustme
Slide 24: EBITDA and Adjusted EBITDA, FY2020
3. Reconciliation of Non-IFRS Financial Measures (continued) EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2020 As reported for the a. Expenses associated with the integration of the Findus Switzerland business acquired on December 31, € in millions twelve months ended 2020.
Slide 25: Adjusted Statement of Profit or Loss, FY2019
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 December twelve months ended December € in millions, except per share data 31, 2019 Adjustme
Slide 26: EBITDA and Adjusted EBITDA, FY2019
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 27: Adjusted Statement of Profit or Loss, FY2018
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 December twelve months ended December € in millions, except per share data 31, 2018 Adjustme
Slide 28: EBITDA and Adjusted EBITDA, FY2018
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 29: Adjusted Statement of Profit or Loss, FY2017
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 December twelve months ended December € in millions, except per share data 31, 2017 Adjustme
Slide 30: EBITDA and Adjusted EBITDA, FY2017
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 31: Adjusted Statement of Profit or Loss, FY2016
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 December twelve months ended December € in millions, except per share data 31, 2016 Adjustme
Slide 32: EBITDA and Adjusted EBITDA, FY2016
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 33: Reconciliation of operating cash flows 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, 2020 and the twelve months ended December 31, 2019 Twelve months ended (in €m) December 31, 2020 December