Nomad Foods Limited · NYSE:NOMD
Nomad Foods — dbAccess Global Consumer Conference 2018
35 slides from Nomad Foods's conference presentation, Jun 12, 2018
Slide 1: dbAccess Global Consumer Conference
dbAccess Global Consumer Conference June 12, 2018
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: Nomad Foods Overview
Nomad Foods Overview In Western Europe’s €25B €2B Net Revenues 13 Primary Countries Across Western Europe Savory Frozen Food Category 90% 4,200 Of Core Portfolio Ranked Company #1 Or #2 In Market Share Employees Source: Company Information; Euromonitor. Figures exclude Aunt Bessie’s, which is expect
Slide 4: First Quarter 2018 Financial Results Overview
First Quarter 2018 Financial Results Overview Organic Year-On-Year Change Adjusted EBITDA Adjusted EPS Revenue Growth In Gross Margin +2.9% +240bp €103mn €0.35/share +1.5% volume/mix to 31.8% of sales +16% growth +40% growth +1.4% price Raised Full Year 2018 Guidance to €1.10 – €1.13 Adjusted EPS1,
Slide 5: Nomad's Organic Revenue Growth Has Been Amongst Best in Class in Food
Nomad’s Organic Revenue Growth Has Been Amongst Best in Class in Food over the Past 12 Months 5% 4% 3% 2% 0% -1% -1% -1% -2% Hostess Nomad Post Pinnacle B&G Foods Campbell General Mills Kellogg ConAgra Foods Source: Company Filings Note: Organic growth rates reflect quarterly average of previous 4 q
Slide 6: A Portfolio Anchored by Three Power Brands
A Portfolio Anchored by Three Power Brands 52% 26% 22% Italy France Spain Germany Austria Netherlands UK Ireland Two New Brands Joining Nomad Foods in 2018 Sweden Norway Finland Belgium Portugal Note: percent figures above represent 2017 net revenue mix by brand and excludes non-branded sales, which
Slide 7: Timeless Brands With A Rich Heritage
Timeless Brands With A Rich Heritage 7
Slide 8: Powerful Icons With Strong Brand Awareness
Powerful Icons With Strong Brand Awareness 8
Slide 9: Diversified Portfolio Across Savory Frozen Food
Diversified Portfolio Across Savory Frozen Food FISH VEGETABLES MEALS POULTRY 40% OF REVENUES 20% OF REVENUES 10% OF REVENUES 10% OF REVENUES Remaining 20% consists of other frozen branded categories and non-branded (private label and food service) sales. Above figures reflect 2017 category mix befo
Slide 10: The Undisputed Leader in Western Europe Savory Frozen Food
The Undisputed Leader in Western Europe Savory Frozen Food 14% market share Western Europe Savory Frozen Food €25B Total Retail Sales Value Source: Euromonitor, Source: Euromonitor, 2017; 2017; branded branded only only 10
Slide 11: Strong Market Share at the Local Category Level
Strong Market Share at the Local Category Level 90% of core portfolio #1 or 2 in market share UK Italy Germany Sweden France Norway Austria Spain Belgium Netherlands Portugal Finland Ireland Seafood 1 # #1 # 1 # 1 # 1 1 # # 1 # 1 # 1 #2 # 1 #2 Vegetables 1 # #1 # 1 # 1 #2 1 # # 1 # 1 #1 # 1 # 1 # 1
Slide 12: Growth Strategy
*Cronths Strategy | x R INA nar A= Nomad Foods
Slide 13: Frozen Food is Aligned With Consumer Trends
Frozen Food is Aligned With Consumer Trends Shorter Meal Times Nutrition Over-Indexed to Online Lower Carbon Footprint Sustainable Sourcing Reduced Waste 13
Slide 14: Room to Grow Share in New and Existing Categories
Room to Grow Share in New and Existing Categories Western Europe Savory Frozen Market Share by Category Meat Fruit Baked Goods Substitutes €.5B €1.3B Poultry Soup €.5B €1.5B €.3B 3% Red Meat 2% 2% €1.6B 33% 22% 6% Potatoes €3.0B Seafood Pizza €4.5B €4.3B Vegetables 11% Ready Meals €3.7B €3.8B 26% 24
Slide 15: A Clear Set of Priorities With A Proven Model
A Clear Set of Priorities With A Proven Model 1 Core Growth 2 Innovation Model 3 Category Growth 15 15
Slide 16: Growth Strategy Rooted in Relentless Focus on the Core
Growth Strategy Rooted in Relentless Focus on the Core Invest disproportionately in the highest margin and most attractive growth areas Portfolio choices Media investments behind brands Core Improved product quality 70% of sales Packaging renovation In-store execution 16
Slide 17: Core Growth is Driving Strong Underlying Performance
Core Growth is Driving Strong Underlying Performance 2017 Organic Revenue Growth Velocity1 Base Volumes1 Category 2% 9% 3% Nomad Foods Total 4% Penetration 1 Brand Health2 Nomad Foods Core 8% 1Aggregate for Nomad Foods’ top 5 markets (UK, Germany, Italy, France & Sweden) 1% 14% 2UK and Italy markets
Slide 18: Core Growth Remains a Primary Focus in 2018
Core Growth Remains a Primary Focus in 2018 18
Slide 19: 2018 Core Renovation: Our Crispiest Ever Fish Finger
2018 Core Renovation: Our Crispiest Ever Fish Finger
Slide 20: Deploying Digital Capabilities
Deploying Digital Capabilities Digital as a % of Nomad Foods Total Advertising Spend 27% 20% 11% 2016 2017 2018E Source: Company Information 20
Slide 21: Building an Innovation Pipeline Behind Key Macro Trends
Building an Innovation Pipeline Behind Key Macro Trends New Launches as a Percent of Nomad Foods Net Revenues 6.0% 5.0% 4.5% Plant Protein Convenience 2016 2017 2018E Vegetarian Health & Wellness Source: Company Information 21
Slide 22: Evolving with Changing Consumer Shopping Habits
Evolving with Changing Consumer Shopping Habits E-commerce Discounter Large Stores Small Shopping Explosion Expansion Re-Invigoration Trip Increasing 22
Slide 23: Shareholder Value Creation
Shareholder Value Creation 23
Slide 24: EBITDA Margin Expansion A Key Driver of Shareholder Value
EBITDA Margin Expansion A Key Driver of Shareholder Value EBITDA Margin Drivers 20% 1 Net Revenue Management 2 Supply Chain 17% Optimization 3 Expense Discipline 2017 Long-Term Opportunity 24 24
Slide 25: Strengthening Net Revenue Management Capabilities into 2018 and 2019
Strengthening Net Revenue Management Capabilities into 2018 and 2019 2016 2017 2018 2019 Teams & Capabilities Promotions Price Price Pack Architecture Trade Terms STAGE OF DEVELOPMENT basic intermediate advanced 25
Slide 26: Drivers of Supply Chain
Drivers of Supply Chain Lean Factory Procurement Manufacturing Footprint Productivity Optimization 26
Slide 27: Funding Growth With Discipline
Funding Growth With Discipline Invest Invest Non-Working Cost In Our Brands Behind Talent Reduction Expense Discipline 27
Slide 28: An Advantaged Balance Sheet with Strong Cash Flow Characteristics
An Advantaged Balance Sheet with Strong Cash Flow Characteristics 9% Adjusted Free Cash Flow Yield Strong Cash Flow Conversion under 3% Cost of Debt Actively Managed Capital Structure Value Creation through Capital Allocation >60% Of Interest Rate Exposure is Fixed 2024 Earliest Debt Maturity 28
Slide 29: Acquisition Criteria
Acquisition Criteria Market Leading Brands with Protective Moats Niche Categories with Opportunities for Growth Cash Flow Generation Strong Management Scale and Skill Synergies Valuation Discipline 29
Slide 30: Aunt Bessie's Acquisition
Aunt Bessie’s Acquisition Announced June 2018 for ~€240 million, expected to close during the third quarter of 2018 Aunt Bessie’s is a leading UK frozen food brand , closely identified with roast dinners Aunt Bessie’s holds #1 market share in Yorkshire puddings and #2 share overall in Potatoes Acqui
Slide 31: UK Portfolio Following Aunt Bessie's and Goodfella's Acquisitions
UK Portfolio Following Aunt Bessie’s and Goodfella’s Acquisitions ~40% of UK pro-forma revenues The acquisition of Aunt Bessie’s is expected to close during the third quarter of 2018. 31
Slide 32: Acquisitions Create a Larger, Stronger, More Diversified UK Portfolio
Acquisitions Create a Larger, Stronger, More Diversified UK Portfolio 2017 UK revenues ~ €400 million Pro Forma UK revenues~ €650 million Other 10% Fish Other 23% 15% Fish Aunt Bessie's 36% 19% Vegetables 19% Poultry 19% Poultry Goodfella's 30% 17% Vegetables 12% Note: The acquisition of Aunt Bessie
Slide 33: 2018 Guidance Summary
2018 Guidance Summary Organic Revenue Growth Adjusted EBITDA Adjusted EPS growth at a approximately approximately Low-single digit €355 to €360 €1.10 to €1.13 percentage rate million per share 2018 guidance equates to the following when translated into US dollars, the Company’s equity trading curren
Slide 34: Generate Shareholder Value by Leveraging Our Assets and Capabilities
Generate Shareholder Value by Leveraging Our Assets and Capabilities Create a Leading Global Consumer Food Company HIGH QUALITY ASSETS OPERATIONAL EXCELLENCE FINANCIAL DISCIPLINE Distinctive Brands Growing from the Core Cost Consciousness Pan-European Scale Net Revenue Management Cash Flow Generatio
Slide 35: Nomad Foods
Nomad Foods O&A aS | Aunt Bess = <—[S/S—S
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