Nomad Foods Limited · NYSE:NOMD
Nomad Foods — CJS Securities' New Ideas Conference 2017
37 slides from Nomad Foods's conference presentation, Jan 11, 2017
Slide 1: CJS Securities' New Ideas Conference
CJS Securities’ “New Ideas” Conference January 11, 2017
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: Investment Highlights
Investment Highlights Leading Player in the Large and Multiple Organic Growth Platform to Consolidate the Resilient Western European Drivers for Base Business Fragmented Global Food Sector Frozen Food Market Iconic Brands with Strong Attractive Financial Experienced Team with a Brand Equity Characte
Slide 4: Company & Market Overview
Company & Market Overview
Slide 5: Who We Are
Who We Are Nomad Foods is a leading packaged foods company seeking to build a global portfolio of best-in- class food companies and brands within the frozen category and across the broader food sector o Leading frozen o Headquartered in packaged food Feltham, UK company in Europe o Operations in 17
Slide 6: Iconic European Brands
Iconic European Brands Spontaneous Brand Awareness 100% 95% 93% 87% 78% 80% 73% 69% 62% 60% 40% 20% 0% UK Italy Germany Sweden Norway Austria France Nomad Position 1 1 1 1 2 1 1 % Nomad Share 13.2% 23.0% 11.1% 22.9% 21.7% 40.0% 11.2% Source: Ipsos and Euromonitor, Branded Sales. 6
Slide 7: Pan European Sales Footprint With Market Leadership
Pan European Sales Footprint With Market Leadership #1 Branded Frozen Player in 10 Countries Top 5 Western European Markets Nomad vs. 2016 Nearest Market % Share Competitor 13.2% 1.74x Rank 3 23.0% 2.88x 2 11.1% 1.09x 1 22.9% 1.26x 2 3 1 1 1 11.2% 1.42x 1 1 1 1 1 1 Source: Euromonitor. 7
Slide 8: Strategic and Geographically Diversified Manufacturing Facilities
Strategic and Geographically Diversified Manufacturing Facilities Tonsberg Cap. Products Loftahammer 89 Veg Cap. Products Larvik 9 Bakery Cap. Products 17 Veg, Fish, Other (Soup, Pizza) Sweden Finland Russia Lowestoft Norway Bjuv (Anticipated Close 1H17) (1) Cap. Products Cap. Products 155 Fish, Pou
Slide 9: Diversified Revenue Mix
Diversified Revenue Mix Categories Geographies Others, 12% Poultry, 10% Others, 14% Industrial, 1% UK & I, 25% Meals, 10% Austria, 4% Private Label, 3% Foodservice, Norway, 6% 6% Veg, 20% Sweden, 8% Italy, 18% France, 11% Fish, 39% Germany, 13% Note: Revenue split based on 2015 Pro Forma As Adjusted
Slide 10: Winning Leadership Across Frozen Categories
Winning Leadership Across Frozen Categories (€Millions) Frozen Frozen Fish Vegetables Frozen Meals Frozen Poultry Total Nomad % Market Share in 25.8% 24.2% 14.3% 21.8% Respective Markets Market Position by Country (2015) Austria 1 1 1 1 1 Belgium 1 1 1 1 1 Finland 1 2 1 3 France 1 2 2 1 1 Germany 1
Slide 11: Nomad Foods has Winning Category Leadership in Frozen Fish
Nomad Foods has Winning Category Leadership in Frozen Fish Market Share in Respective Markets Must Win Battles Performance – UK Fish Fingers Net Sales Nomad Foods, 26% €50.8 €48.3 H1 2015 H1 2016 Net Sales €792.9 mm # of Countries in 9 leadership positions Source: Euromonitor, Branded Sales. Note: S
Slide 12: Category Leadership in Frozen Vegetables
Category Leadership in Frozen Vegetables Market Share in Respective Markets Must Win Battles Performance – Sweden Peas Net Sales Nomad €3.5 Foods, 24% €3.1 H1 2015 H1 2016 Net Sales €406.8 mm # of Countries in 11 leadership positions Source: Euromonitor, Branded Sales. Note: Sales and leadership as
Slide 13: Category Leadership in Frozen Meals
Category Leadership in Frozen Meals Market Share in Respective Markets Must Win Battles Performance – Sweden Meals Net Sales Nomad Foods, 13% €21.9 €21.4 H1 2015 H1 2016 Net Sales €199.7 mm # of Countries in 9 leadership positions Source: Euromonitor, Branded Sales. Note: Sales and leadership as of
Slide 14: Category Leadership in Frozen Poultry
Category Leadership in Frozen Poultry Market Share in Respective Markets Nomad Foods, 22% Net Sales €197.6 mm # of Countries in leadership 7 positions Source: Nielsen, Euromonitor, IRI. Note: Sales and leadership as of 2015A. 14
Slide 15: Top Tier Management Team to Drive Strategy
Top Tier Management Team to Drive Strategy Stéfan Descheemaeker Paul Kenyon Tania Howarth CEO CFO COO 15
Slide 16: The Frozen Aisle is Large, Resilient and Growing
The Frozen Aisle is Large, Resilient and Growing How the Frozen Category has Evolved How Nomad Has Evolved with the Category o €25 billion market(1) o Portfolio of iconic brands o Aligned with consumer trends; limited o Must Win Battles focused on high velocity waste, no preservatives, nutrition, SK
Slide 17: European Frozen Food Market is Sizeable and Continues to Grow
European Frozen Food Market is Sizeable and Continues to Grow Retail Value €bn 2004-2016 CAGR 100.0 2.2% 80.0 60.0 3.1% 40.0 20.0 1.5% 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Frozen €20.9 €21.0 €21.4 €22.0 €22.7 €23.1 €23.2 €23.6 €24.1 €24.4 €24.5 €24.7 €24.9 Market Froz
Slide 18: Nomad's Value Creation Model
Nomad’s Value Creation Model Stabilize and Grow Core Excellence in Execution Efficient Capital Allocation o Identified strategy to stabilize o Building best-in-class integrator o Disciplined M&A strategy with sales: clear investment criteria o Swift and effective integration to Realize savings to
Slide 19: Growth Strategy
Growth Strategy
Slide 20: Key Actions to Stabilize and Grow
Key Actions to Stabilize and Grow A o Redirect resources behind Must Win Battles B o Leverage our local heroes C o Revenue management: untapped and complementary D o Cost efficiencies (organic and synergies) 20
Slide 21: Redirect resources behind Must Win Battles
A o Redirect resources behind Must Win Battles 21
Slide 22: A&P Resources Shifted to Core
A&P Resources Shifted to Core Core v. NPD GRPs 100% 7% 90% 30% 80% 45% 48% 70% 68% 74% 60% 50% 93% 40% 70% 30% 55% 52% 20% 32% 26% 10% 0% 2012 2013 2014 2015 Aug' 16 Target Mix Core NPD 22
Slide 23: NPD Resources Shifted to Renovation Projects
NPD Resources Shifted to Renovation Projects 100% Examples of Renovation 90% UK: Improved recipe on Breaded & Breaded Coated Fish rage 80% 70% 60% 50% Previous Current 40% New Fish Fingers Italy: New Resealable Recipe Primaveri Peas Pack 30% 20% 10% 0% May '15 Dec ' 15 Aug' 16 NPD Line Extensions Ex
Slide 24: Leverage our local heroes
A o Redirect resources behind Must Win Battles B o Leverage our local heroes 24
Slide 25: Single Global, Masterbrand Campaigns Are Being Replaced by Local Hero Platforms
Single Global, Masterbrand Campaigns Are Being Replaced by Local Hero Platforms Strategy Actions Taken o Restore iconic local brand assets o Captain back on air in 6 countries and new copy for 2017 being developed o Invest in 3-4 priority platforms at scale o New packaging design to further utilise
Slide 26: Fish Fingers - Strategy in Action
Fish Fingers - Strategy in Action Household Penetration pp change vs LY 52 weeks 12 weeks 4 weeks DE -0.8 -0.9 0.5 IT -4.8 -1.5 -0.3 UK -0.5 0.5 0.4 Source: GFK to 02/10/16 Fish Fingers Communications Effectiveness Index Fish Fingers Value Sales % change vs LY (sales out) 52 weeks 12 weeks 4 weeks D
Slide 27: Italy Has Delivered Success Following This Model
Italy Has Delivered Success Following This Model Sofficini Net Sales €19.8 o Enhanced product focus and differentiation driving penetration €17.8 o Renovation supported by consumer- based market research (e.g. “oven crispy” coating) o New recipe and pack, supported by H1 2015 H1 2016 digital promoti
Slide 28: Germany Has Delivered Success Following This Model
Germany Has Delivered Success Following This Model o Focus on Heroes with continuous 360 degree behind support o Renovated Adult Favourites through a relaunch of Schlefi for improved variant differentiation supported by a successful give-away promotion for Schlefi and Filegro Fish Recipes Net Sales
Slide 29: Revenue management: untapped and complementary
A o Redirect resources behind Must Win Battles B o Leverage our local heroes C o Revenue management: untapped and complementary 29
Slide 30: Net Revenue Management - A New Way of Working
Net Revenue Management ─ A New Way of Working Reallocate Top-line Spend to Must Win Battles 1. Prioritise 2. Reallocate Distribution Promotional Opportunities Spend Build Capabilities to Deliver Profitable Plans 3. Optimise 4. Increase 5. Upgrade Price Pack Trade Terms Capabilities Architecture Cond
Slide 31: Nomad Net Sales Performance by Quarter
Nomad Net Sales Performance by Quarter Pre-Nomad Strategy New Strategic Direction Strategic Food of Life Pan-European Ad Campaign Launch Review Revenue Mgmt. Cost Review NPD Strategy Launches New Packaging Promo Changes Launch Annual Annual New Negotiations Negotiations Advertising Refreshed Adverti
Slide 32: Cost efficiencies (organic and synergies)
A o Redirect resources behind Must Win Battles B o Leverage our local heroes C o Revenue management: untapped and complementary D o Cost efficiencies (organic and synergies) 32
Slide 33: Findus Synergy and Integration
Findus Synergy and Integration o High level of confidence to deliver potential €43 million to €48 million by 2018; realized €10 million run-rate synergies as of Q3 2016 o Potential incremental manufacturing footprint rationalization o Potential incremental working capital and future capex opportunit
Slide 34: Consolidation Opportunity
Consolidation Opportunity
Slide 35: Three buckets of M&A opportunity
Three “buckets” of M&A opportunity European Frozen: o Consolidation opportunity 1 o Procurement, manufacturing, logistics & sales force synergies o Best practice and G&A synergies European Non-Frozen: o Platform & tuck-in opportunity to expand into new categories 2 o Procurement and manufacturing sy
Slide 36: Investment Highlights
Investment Highlights Leading Player in the Large and Multiple Organic Growth Platform to Consolidate the Resilient Western European Drivers for Base Business Fragmented Global Food Sector Frozen Food Market Iconic Brands with Strong Attractive Financial Experienced Team with a Brand Equity Characte
Slide 37: Nomad Foods
Nomad Foods
Nomad Foods — CJS Securities' New Ideas Conference 2017 on 6ix