Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Investor Presentation (December 2018)
30 slides from Nomad Foods's investor presentation, December 2018
Slide 1: Investor Presentation December 2018
Investor Presentation December 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 €2.2 Net Revenues B 13 Primary Countries Across Western Europe Savory Frozen Food Category 90% 4,600 Of Core Portfolio Ranked Company #1 Or #2 In Market Share Employees Source: Company Information; Euromonitor 3
Slide 4: First 9 Months of 2018 Financial Results Overview
First 9 Months of 2018 Financial Results Overview Organic Year-On-Year Change Adjusted EBITDA Adjusted EPS Revenue Growth In Gross Margin Growth Growth +2.1% +20bp +12% +24% +1.0% price to 30.5% of sales +1.1% volume/mix Raised Full Year 2018 Guidance to the upper end of the prior range of Adjusted
Slide 5: Company Overview
Company Overview Nomad Foods
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 Joined Nomad Foods in 2018 Sweden Norway Finland Belgium Portugal Acquired April 2018 Acquired July 2018 Note: percent figures above represent 2017 net revenue mix by brand
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: 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 14: Growth Model
A Clear Set of Priorities With A Proven Model 1 Core Growth Growth 2 Innovation Model 3 Category Growth 14 14
Slide 15: Core Growth Remains a Primary Focus in 2018
Core Growth Remains a Primary Focus in 2018 15
Slide 16: 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 16
Slide 17: 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 17
Slide 18: The European Activation of Veggie Power Recently Began in Portugal
The European Activation of Veggie Power Recently Began in Portugal 18
Slide 19: Activation of Plant Protein Begins in Sweden with pease in Q3'18
Activation of Plant Protein Begins in Sweden with pease in Q3’18 19
Slide 20: Shareholder Value Creation
Shareholder Value Creation 20
Slide 21: 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 21 21
Slide 22: 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 22
Slide 23: Drivers of Supply Chain
Drivers of Supply Chain Lean Factory Procurement Manufacturing Footprint Productivity Optimization 23
Slide 24: Funding Growth With Discipline
Funding Growth With Discipline Invest Invest Non-Working Cost In Our Brands Behind Talent Reduction Expense Discipline 24
Slide 25: An Advantaged Balance Sheet with Strong Cash Flow Characteristics
An Advantaged Balance Sheet with Strong Cash Flow Characteristics 90% Target Cash Conversion Strong Cash Flow Conversion under 3% Cost of Debt Actively Managed Capital Structure Value Creation through Capital Allocation ~70% Of Interest Rate Exposure is Fixed 2024 Earliest Debt Maturity 25
Slide 26: 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 26
Slide 27: 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 27
Slide 28: 2018 Guidance
2018 Guidance Organic Revenue Growth Adjusted EBITDA Adjusted EPS growth at a Upper end of Upper end of Low-single digit €365 to €370 €1.14 to €1.17 percentage rate million per share 2018 guidance equates to the following when translated into US dollars, the Company’s equity trading currency: • Adju
Slide 29: 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 30: Nomad Foods
Nomad Foods O&A aS | Aunt Bess = <—[S/S—S