Nomad Foods Limited · NYSE:NOMD
Nomad Foods — CAGNY 2023
35 slides from Nomad Foods's conference presentation, Feb 23, 2023
Slide 1: Nomad Foods CAGNY Investor Presentation
Nomad Foods » CAGNY Investor Presentation February 23, 2023
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: Company Overview
Company Overview Stéfan Descheemaeker Chief Executive Officer
Slide 4: Nomad Foods is the Most Attractive Growth Story in Global Frozen Food
Nomad Foods is the Most Attractive Growth Story in Global Frozen Food Market leader in European Frozen Consistent organic growth with strong 1 Food, a category which leads FMCG 4 top and bottom line contributions on Health and Sustainability from strategic acquisitions Dynamic portfolio of leading b
Slide 5: A Portfolio of Europe's Leading Frozen Food Brands
Company Overview A Portfolio of Europe’s Leading Frozen Food Brands € 3billion 19 NUMBER OF > 8,000 REVENUES COMPANY PRODUCTION EMPLOYEES FACILITIES 3% 12% AVERAGE ORGANIC ADJUSTED EPS REVENUE GROWTH PER CAGR YEAR 2016-2022 2016-2022 CAGNY 2023
Slide 6: Nomad Foods European Footprint
Nomad Foods European Footprint SEPTEMBER 2021 Acquisition of Fortenova’s Frozen Food Business DECEMBER 2020 Acquisition of Findus Switzerland APRIL & JULY 2018 Acquisition of Goodfella’s and Aunt Bessie’s NOVEMBER 2015 Acquisition of Findus Group JUNE 2015 Initial acquisition of the Iglo Group 22 8,
Slide 7: Fun Facts About Nomad
Fun Facts About Last year, THE UK We have The 2.5 BILLION FISH REMOVED 193 TONS THE LARGEST FISH FINGERS we produce OF MATERIAL FROM ITS FACTORY IN THE WORLD annually would stretch PACKAGING – this is the in Bremerhaven and THE around the world five equivalent to 16 London LARGEST HERB FIELD and hal
Slide 8: Double-digit Adjusted EPS Built on Consistent Organic Sales Growth
Double-digit Adjusted EPS Built on Consistent Organic Sales Growth, Disciplined Cost Control and Effective Capital Allocation 6-year historical performance 2016-2022 3% Effective Cost Management 12% organic 7% Revenue Opportunistic Maximizing Growth Buy Back Adjusted EPS Shareholder CAGR CAGR Return
Slide 9: Nomad Generates Strong Free Cash Flow
Nomad Generates Strong Free Cash Flow to Fund Accretive Capital Allocation Total Adjusted Free Average Adjusted Average Free Cash Flow Cash Flow Cash Flow Conversion as % of Sales 2016-2022 2016-22 2016-2022 € 1.7bn 108% 11% CAGNY 2023
Slide 10: Iconic Brands with High Brand Awareness
Iconic Brands with High Brand Awareness CAGNY 2023
Slide 11: Our Commercial Strategy Combines Great Products, Communication and Brands
Our Commercial Strategy Combines Great Products, Outstanding Communication and World Class Brands We have We have We have Superior Products Great Communications The Most Relevant Brands The nº1 driver on repeat Brand Equity Score is product superiority TOP GERMANY 5% 28 Iglo Germany Fish fingers Get
Slide 12: A Portfolio and Strategy Anchored in Must Win Battles
A Portfolio and Strategy Anchored in Key Facts About our MWB portfolio: 70% of total sales 5% annual organic revenue growth since 2017 40% market share* *includes Adriatic region and within MWB categories
Slide 13: Driven by Strategic Acquisitions, We Have Grown Sales and EPS
Driven by Strategic Acquisitions, We Have Grown Nomad Sales >50%, EBITDA >60%, and Doubled Adjusted EPS Since 2016 2015 2018 2018 2020 2021 Acquisition for Acquisition for Acquisition for Acquisition for Acquisition for approximately approximately approximately approximately approximately €700 milli
Slide 14: Growing Contribution from Innovation
Growing Contribution from Innovation as a % of Sales 4% 2018 6% 2021 8% 2025 GOAL Note: Innovation defined as new products introduced within the past two years
Slide 15: Green Cuisine is Outperforming Competitors
Green Cuisine is Outperforming Competitors, Gaining Share & Challenging for Market Leadership European Meat-Free Frozen Food 3-year CAGR Growth 2020-2022 12% PRIVATE LABEL 2 - % 4 - % 5 - % - 11% - 12% -16% Growth rates represent retail sales value from the start of 2020 to the end of 2022 across 11
Slide 16: ESG is Becoming More Crucial for Investors
ESG is Becoming More Crucial for Investors, and We are Raising our Game We expect to use 100% fish and seafood from 100% O 100% of our vegetables and potatoes expected 100% sustainable fishing to be produced using and responsible farming sustainable farming practices by the end of 2025 by the end of
Slide 17: Nomad is at the Cutting Edge of Key Consumer Trends
Nomad is at the Cutting Edge of Key Consumer Trends CONVENIENCE AND PLANT HEALTH AND TASTE AND AFFORDABILITY PROTEIN SUSTAINABILITY NUTRITION
Slide 18: Frozen is Expanding its Post-COVID Consumer Gains across Europe
Frozen is Expanding its Post-COVID Consumer Gains across Europe Total Savory Frozen Category – Value (BN) and % Change €20,2 €19,5 €18,8 €18,7 €16,7 +8% In 2023, Frozen will be €3.5bn +17% -4% -1% larger than pre-COVID CAGR +5% The category has retained □ of ‘COVID’ value growth Frozen Food is forec
Slide 19: We Have Added Nearly 500,000 Households
We Have Added Nearly 500,000 Households While Increasing Our Overall Penetration Levels Since Covid Nomad Savory Frozen Household Penetration % 52 weeks* 82,6 We have expanded our consumer 65% reach since the pandemic Households (m) 82,2 Penetration (%) 64% We expect nearly 83m households will consu
Slide 20: We Have the Right Plans to Meet New Challenges in 2023
We Have the Right Plans to Meet New Challenges in 2023 Secured our Strengthen our long-term fish supply brands while adding to our consumer value and affordability propositions Leveraged our supply chain to address volatile markets despite unprecedented cost increases Leverage our world-class supply
Slide 21: Our 2023 Commercial Strategy Will Maximize Portfolio Value
Our 2023 Commercial Strategy will Maximize Portfolio Value, Helping Offset Costs while Meeting Consumer Needs REFRAME LEVERAGING TURBOCHARGE EXISTING AFFORDABLE GROWING MUST WIN BATTLES CORE OCCASIONS VALUE PORTFOLIO Innovate & renovate to offer Capture new in-home Invest in affordable convenient, a
Slide 22: Enhanced Media Investment and Product Innovation Will Drive Success
Enhanced Media investment and Product Innovation Will Drive Success in the Market Nomad Foods Nomad Foods Media Spend Evolution Innovation NS & % of NS 162 145 132 5,9% 5,7% >10 % 5,1% Innovation net sales Innovation % NS 2018 2019 2020 2021 2022 2023 2021 Q3F 22 2023 Forecast Forecast CAGNY 2023
Slide 23: Our Supply Chain is Evolving Rapidly
Our Supply Chain is Evolving Rapidly, Lowering our Costs and Fueling Growth 2022 Challenges 2023 Strategic Response Inflation up nearly €300m, Focus on People Safety, an unprecedented 10x increase Food Safety and Talent Disrupted global supply chains coming out of COVID lockdowns, war in Ukraine, ba
Slide 24: Manufacturing Savings Will Come from a Variety of Sources
Manufacturing Savings will come from a Variety of Sources, Providing Cash for Reinvestment Nomad Foods Nomad Foods Manufacturing Savings Evolution Sources of Savings, 2023 Fixed costs Labor 15% 23% Other variable costs 12% Waste 20% Utilities RM price 25% 2020 2021 2022 2023 Forecast 5% CAGNY 2023
Slide 25: Pricing Will Focus on Recouping Our Costs
Pricing will Focus on Recouping our Costs and Funding Investment and Innovation 2022 2023 Forecast We forecast that we will recoup our two-year inflation costs through pricing by year-end 2023 Pricing Inflation/ Pricing Inflation/ Elasticity Elasticity CAGNY 2023
Slide 26: Our Revenue Growth Management Program
Our Revenue Growth Management (RGM) Program Will Maximize Sales Growth by Applying Disciplined Analytics We will protect and grow our brands versus private label through improving RGM execution We have a clear process map to build & execute our plan to deliver optimized sales value versus volume, fu
Slide 27: Financial Perspective
Financial Perspective Samy Zekhout Chief Financial Officer
Slide 28: We Achieved Another Strong Year of Growth in 2022
We Achieved Another Strong Year of Growth in 2022 +13% +8% +8% Revenue Adjusted EBITDA Adjusted EPS Growth Growth Growth CAGNY 2023
Slide 29: 2022 Marks the Sixth Consecutive Year of Record Financial Performance
2022 Marks the Sixth Consecutive Year of Record Financial Performance Revenues Adjusted EBITDA Adjusted EPS 7% CAGR 8% CAGR 12% CAGR €2.9 €524 €1.68 bilion milion per share €1.9 €325 bilion milion €0.84 per share 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 20
Slide 30: Growth Levers
Growth Levers Organic Growth Accretive Capital Deployment FROZEN TARGETED CATEGORY CAPITAL GROWTH INVESTMENT Share M&A Repurchases MARKET STRONG SHARE CASH EXPANSION GENERATION Approximately €2.2 Billion of Capital Deployed Towards Share Repurchase and Acquisitions Since 2017 CAGNY 2023
Slide 31: Establishing 2023 Guidance
Establishing 2023 Guidance Total Revenue Cash Flow Conversion Adjusted EPS Mid-single digit growth 90-95% €1.50-€1.55 $1.61- $1.66* *2023 EPS guidance range converted to USD, the currency in which Nomad Foods shares trade, for illustrative purposes and based on USD/EUR FX rate of 1.07 as of February
Slide 32: To Meet Our Long-term Goals, We Will Execute the Following Strategies
To Meet Our Long-term Goals, We Will Execute the Following Strategies: Excel in our “Must Win Battles” Look for Accretive Acquisitions New New markets categories Leverage Revenue Protect Product Supply Innovate for Affordability Accelerate Green Cuisine Growth Management
Slide 33: Nomad Foods is the Most Attractive Growth Story in Global Frozen Food
Nomad Foods is the Most Attractive Growth Story in Global Frozen Food Market leader in European Frozen Consistent organic growth with strong 1 Food, a category which leads FMCG 4 top and bottom line contributions on Health and Sustainability from strategic acquisitions Dynamic portfolio of leading b
Slide 34: Thank you.
Thank you. Nomad Foods
Slide 35: Questions?
Questions? Nomad Foods