Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Q4 2017 Earnings Presentation
28 slides from Nomad Foods's earnings presentation, Mar 22, 2018
Slide 1: Fourth Quarter 2017 Earnings Conference Call
Fourth Quarter 2017 Earnings Conference Call March 22, 2018
Slide 2: Disclaimer
Disclaimer BY READING THIS PRESENTATION, YOU ARE DEEMED TO HAVE READ AND ACCEPTED THE STATEMENT BELOW. This presentation has been prepared by Nomad Foods Limited. This presentation provides information about Nomad Foods Limited and its subsidiaries. Any references to Nomad shall mean Nomad Foods Lim
Slide 3: 4Q17 and Full Year 2017 Highlights
4Q17 and Full Year 2017 Highlights Full Year 2017 Highlights • Organic revenue growth of 3.9%, driven by 2.7% volume/mix and 1.2% price • Growth led by Germany +16% and Italy +7% • Gross margins expand 100 basis points to 30.6%, including 10 basis points of unfavorable FX • Adjusted EBITDA of €328 m
Slide 4: Organic Revenue Growth
Organic Revenue Growth 2015 2016 2017 5.9% 5.6% 3.5% 1.1% (0.8)% (2.7)% (3.3)% (3.8)% (5.4)% (6.1)% (7.0)% (8.0)% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Organic Revenue Growth 4
Slide 5: Organic Revenue Trends by Major Region
Organic Revenue Trends by Major Region UK 8.6% Italy 11.6% 7.9% 7.5% 2.5% 3.0% (1.1)% (3.4)% (2.5)% (3.6)% (8.1)% (7.4)% (5.8)% (5.6)% (6.4)% (10.9)% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Germany Other Countries 19.8% 19.3% 16.3% 9.8% 3.5% 6.0% 2.4% (1.2)% (
Slide 6: 4Q17 Gross Margin Bridge
4Q17 Gross Margin Bridge Gross Margin: +3.5 ppts 1.3% 31.5% 1.7% 28.0% 0.1% 0.4% Q4 2016 FX Mix Price / COGS Q4 2017 Translational Promo (Infl)/Defl Impact 6
Slide 7: 4Q17 Operating Performance
4Q17 Operating Performance YoY Euro M, except share data 4Q 17 4Q 16 Growth Revenue 508.2 485.2 4.7% Organic Revenue Growth 5.6% Gross Profit 160.0 135.9 17.7% Gross Margin 31.5% 28.0% Advertising & Promotion (34.5) (37.3) (7.5)% Advertising & Promotion (% Revenue) 6.8% 7.7% Indirects (a) (54.0) (49
Slide 8: FY17 Gross Margin Bridge
FY17 Gross Margin Bridge Gross Margin: +1.0 ppts 1.1% 0.8% 30.6% 29.6% (0.1)% (0.8)% FY 2016 FX Mix Price / COGS FY 2017 Translational Promo (Infl)/Defl Impact 8
Slide 9: FY17 Operating Performance
FY17 Operating Performance YoY Euro M, except share data FY 17 FY 16 Growth Revenue 1,956.6 1,927.7 1.5% Organic Revenue Growth 3.9% Gross Profit 599.4 571.0 5.0% Gross Margin 30.6% 29.6% Advertising & Promotion (113.1) (113.7) (0.5)% Advertising & Promotion (% Revenue) 5.8% 5.9% Indirects (a) (200.
Slide 10: Key Cash Flow Metrics
Key Cash Flow Metrics YoY Euro M FY 17 FY 16 Movement Adjusted EBITDA 328.1 324.9 3.2 Loss on disposal of property, plant & equipment 0.5 0.7 (0.2) Working capital movement 33.2 33.9 (0.7) Pensions & other provisions movements (0.3) (3.3) 3.0 Adjusted capital expenditure (1) (38.3) (39.8) 1.5 Adjust
Slide 11: 2018 Guidance
2018 Guidance Organic Revenue Growth Adjusted EBITDA Adjusted EPS growth at a approximately approximately low-single digit €350 to €360 €1.08 to €1.13 percentage rate million per share Notes • Adjusted EBITDA and Adjusted EPS guidance includes expected partial year contribution from Goodfella's Pizz
Slide 12: Questions?
Nomad Foods Questions? 12
Slide 13: Appendix
Nomad Foods Appendix 13
Slide 14: Contents
Contents The following tables have been included to allow users to reconcile non-IFRS financial information as well as Adjusted financial information included within this presentation to reported IFRS financial information. 1. Definitions of all key terms and P&L measures referred to in this present
Slide 15: Definitions of all key terms and P&L measures
1) Definitions of all key terms and P&L 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 h
Slide 16: Reconciliation from reported to organic revenue growth
2) Reconciliation from reported to organic revenue growth Year on Year Growth – Three months ended December 31, 2017 compared with three months ended December 31, 2016 YoY Growth Reported Revenue Growth 4.7% Trading Day Impact —% Translation FX (a) 0.9% Organic Revenue Growth 5.6% a. Translational F
Slide 17: Reconciliation from reported to organic revenue growth
2) Reconciliation from reported to organic revenue growth Year on Year Growth – Twelve months ended December 31, 2017 compared with twelve months ended December 31, 2016 YoY Growth Reported Revenue Growth 1.5% Trading Day Impact 0.5% Translation FX (a) 1.9% Organic Revenue Growth 3.9% a. Translation
Slide 18: Reconciliation of reported to Adjusted information, three months 2017
3) Reconciliation of reported to Adjusted financial information for the three months ended December 31, 2017 Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2017 As reported for the As adjusted for the three months ended three months ended € in millions, except per s
Slide 19: EBITDA and Adjusted EBITDA, three months 2017
3) Reconciliation of reported to Adjusted financial information for the three months ended December 31, 2017 EBITDA and Adjusted EBITDA (unaudited) Three months ended December 31, 2017 Three months ended € in millions December 31, 2017 Profit for the period 27.3 Taxation 3.2 Net financing costs 17.4
Slide 20: Reconciliation of reported to Adjusted information, three months 2016
4) Reconciliation of reported to Adjusted financial information for the three months ended December 31, 2016 Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2016 As reported for the As adjusted for the three months ended three months ended € in millions, except per s
Slide 21: EBITDA and Adjusted EBITDA, three months 2016
4) Reconciliation of reported to Adjusted financial information for the three months ended December 31, 2016 EBITDA and Adjusted EBITDA (unaudited) Three months ended December 31, 2016 Three months ended € in millions December 31, 2016 Profit for the period (2.1) Taxation 6.1 Net financing costs 22.
Slide 22: Reconciliation of reported to Adjusted information, twelve months 2017
5) 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 the As adjusted for the twelve months ended twelve months ended € in millions, except p
Slide 23: EBITDA and Adjusted EBITDA, twelve months 2017
5) 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 Twelve Months Ended € in millions December 31, 2017 Profit for the period 136.5 Taxation 32 Net financing costs 7
Slide 24: EBITDA and Adjusted EBITDA, twelve 2017 (Continued)
5) Reconciliation of reported to Adjusted financial information for the twelve months ended December 31, 2017 (Continued) EBITDA and Adjusted EBITDA (unaudited) Twelve months ended December 31, 2017 f. Elimination of non-recurring income and costs associated with liabilities relating to periods prio
Slide 25: Reconciliation of reported to Adjusted information, twelve months 2016
6) 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 twelve months ended twelve months ended € in millions, except p
Slide 26: EBITDA and Adjusted EBITDA, twelve months 2016
6) 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 millions December 31, 2016 Profit for the period 36.4 Taxation 39.6 Net financing costs
Slide 27: EBITDA and Adjusted EBITDA, twelve 2016 (Continued)
6) Reconciliation of reported to Adjusted financial information for the twelve months ended December 31, 2016 (Continued) EBITDA and Adjusted EBITDA (unaudited) Twelve months ended December 31, 2016 h. Elimination of non-recurring costs associated with settlements of tax audits and other liabilities
Slide 28: Reconciliation of net cash flows from operating activities to Adjusted Operating Cash flow
7) Reconciliation of reported net cash flows from operating activities to Adjusted Operating Cash flow (excl. tax) for the twelve months ended December 31, 2017 and the twelve months ended December 31, 2016 As reported for the As reported for the twelve months ended twelve months ended € in millions