Nomad Foods Limited · NYSE:NOMD
Nomad Foods — CAGNY 2022
59 slides from Nomad Foods's conference presentation, Feb 25, 2022
Slide 1: CAGNY Investor Presentation February 24, 2022
CAGNY Investor Presentation February 24, 2022
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
Stéfan Descheemaeker Chief Executive Officer Company Overview
Slide 4: Nomad Foods is a Uniquely Positioned Growth Company
European market leaders in the Frozen Food category, which is well positioned to lead on Health and Sustainability A highly focused portfolio of market leading frozen brands across Europe in key growing segments including Plant Protein Strong free cash flow conversion fuelling accretive capital allo
Slide 5: A Portfolio of Europe's Leading Frozen Food Brands
3% ORGANIC REVENUE GROWTH PER YEAR 2017-2021 13% ADJUSTED EPS CAGR 2017-2021 ~ €2.9billion PRO-FORMA REVENUES >8,000 COMPANY EMPLOYEES 19 NUMBER OF PRODUCTION FACILITIES A Portfolio of Europe’s Leading Frozen Food Brands Company Overview CAGNY 2022
Slide 6: Nomad Foods European Footprint: Iglo Group acquisition
Nomad Foods European Footprint JUNE 2015 Initial acquisition of the Iglo Group 7 COUNTRIES 2,800 EMPLOYEES 5 CATEGORIES €1.4bn TURNOVER CAGNY 2022
Slide 7: Nomad Foods European Footprint: Findus Group acquisition
Nomad Foods European Footprint NOVEMBER 2015 Acquisition of Findus Group 12 COUNTRIES 4,000 EMPLOYEES 5 CATEGORIES €2bn TURNOVER CAGNY 2022
Slide 8: Nomad Foods European Footprint: Goodfella's and Aunt Bessie's
Nomad Foods European Footprint APRIL & JULY 2018 Acquisition of Goodfella’s and Aunt Bessie’s 13 COUNTRIES 4,700 EMPLOYEES 7 CATEGORIES €2.3bn TURNOVER CAGNY 2022
Slide 9: Nomad Foods European Footprint: Findus Switzerland
Nomad Foods European Footprint DECEMBER 2020 Acquisition of Findus Switzerland 14 COUNTRIES 4,800 EMPLOYEES 7 CATEGORIES €2.6bn TURNOVER CAGNY 2022
Slide 10: Nomad Foods European Footprint: Fortenova Frozen Food
Nomad Foods European Footprint SEPTEMBER 2021 Acquisition of Fortenova’s Frozen Food Business 22 COUNTRIES 8,000 EMPLOYEES 8 CATEGORIES €2.9bn TURNOVER CAGNY 2022
Slide 11: Why is Nomad Foods Unique?
Why is Nomad Foods Unique? A portfolio focused on FROZEN FOOD Accretive CAPITAL ALLOCATION A leader in HEALTH & SUSTAINABILITY
Slide 12: A Growth Strategy Built on Steady Organic Growth and Disciplined Capital Allocation
5-year historical performance 2017-2021 13% Adjusted EPS CAGR Maximising Shareholder Return 3% organic 3% M&A 6% Revenue growth CAGR Effective Cost Management Opportunistic Buy Back A Growth Strategy Built on Steady Organic Growth and Disciplined Capital Allocation CAGNY 2022
Slide 13: A Portfolio Aligned with Long-Term Macro Tailwinds
HEALTH AND SUSTAINABILITY PLANT PROTEIN TASTE AND NUTRITION CONVENIENCE AND AFFORDABILITY A Portfolio of Frozen Food Brands Aligned with Long-Term Macro Tailwinds CAGNY 2022
Slide 14: Consumers Have Rediscovered Frozen Food During COVID-19
Frozen food has outperformed 2-Year Change in Retail Sales Value (Q3 2019 to Q3 2021) Source: Nielsen Strategic Planner, Nielsen EPOS data Q3 MAT. Total Europe: Nomad’s Geographical Footprint inc Switzerland Source: Europanel Q3 2021 (France, Germany, Italy, Sweden, UK) 15% 7% AMBIENT FOOD SAVOURY F
Slide 15: A Portfolio of Iconic and Market Leading Brands
A Portfolio of Iconic and Market Leading Brands CAGNY 2022
Slide 16: A Portfolio and Strategy Anchored in Must Win Battles
Source: Europanel Q3 2021 (France, Germany, Italy, Sweden, UK) *Does not include the 2021 acquisitions Key Facts About our Core Portfolio: A Portfolio and Strategy Anchored in (Our Must Win Battles) 70% of total sales 6% annual organic revenue growth since 2017 39% market share*
Slide 17: Growing Contribution from Innovation as a % of Sales
Note: Innovation defined as new products introduced within the past two years Growing Contribution from Innovation as a % of Sales 4% 2018 6% 2021 8% 2025 GOAL
Slide 18: An Emerging ESG Story Supported by Strong Sustainability Platforms
Responsible Fishing Sustainable Agriculture Nutrition / Healthy Diet Plant Protein Food Waste An Emerging ESG Story Supported by Strong Sustainability Platforms CAGNY 2022
Slide 19: A Year of Numerous Sustainability Milestones
Joined the Race to ZeroAdded to Dow Jones Sustainability Europe Index Nomad Foods achieved a score of 100% in Health & Wellbeing. Was a Year of Numerous Sustainability Milestones CAGNY 2022
Slide 20: A Year of Numerous Sustainability Milestones Achieved
100% Renewable electricity based on Dec 31st 2021 position excluding manufactoring sites for Findus Switzerland & Fortenova frozen food business Partnered with WWF Was a Year of Numerous Sustainability Milestones Achieved 100% Renewable Electricity in manufacturing CAGNY 2022
Slide 21: Green Cuisine is a Dynamic Driver of Growth and Value Creation
Green Cuisine Revenues 2021 2022202020192018 ~€55 million ~€42 million ~€19 million Beyond o Green Cuisine is a Dynamic Driver of Growth and Value Creation for Nomad CAGNY 2022
Slide 22: Green Cuisine is Europe's Fastest Growing Frozen Meat-Free Brand
Growth rates represent retail sales value from the start of 2020 to the end of 2021 across 11 European markets where Green Cuisine is currently present. Source: Nielsen European Meat-Free Frozen Food 2 Year CAGR Growth 2020-2021 46% 31% 13% 9% 5% 0% -7% 103% Green Cuisine is Europe’s Fastest Growing
Slide 23: Financial Perspective
Samy Zekhout Chief Financial Officer Financial Perspective
Slide 24: We Achieved Another Strong Year of Growth in 2021
3.6% Revenue Growth 4% Adjusted EBITDA Growth 15% Adjusted EPS Growth We Achieved Another Strong Year of Growth in 2021 CAGNY 2022
Slide 25: 2021 Marks the Fifth Consecutive Year of Record Financial Performance
Revenues Adjusted EBITDA Adjusted EPS 20172016 2018 2019 2020 202120172016 2018 2019 2020 2021 13% CAGR8% CAGR6% CAGR 20172016 2018 2019 2020 2021 €1.9 bilion €2.6 bilion €325 milion €487 milion €1.55 per share €0.84 per share 2021 Marks the Fifth Consecutive Year of Record Financial Performance CAG
Slide 26: Growth Levers
FROZEN CATEGORY GROWTH TARGETED CAPITAL INVESTMENT STRONG CASH GENERATION MARKET SHARE EXPANSION Organic Growth Accretive Capital Deployment Share RepurchasesM&A Approximately €2.0 Billion of Capital Deployed Towards Share Repurchase and Acquisitions Since 2017 Growth Levers CAGNY 2022
Slide 27: M&A Criteria
New Categories, Countries and Channels Reasonable Valuations Cash Flow Generative Strong Strategic and Financial Rational A Clear Path to Top and Bottom Line Growth Leading Market Share M&A Criteria CAGNY 2022
Slide 28: A History of Strategic and Highly Accretive Acquisitions
2018 Acquisition for approximately €225 million 2018 Acquisition for approximately €240 million 2020 Acquisition for approximately €110 million 2021 Acquisition for approximately €615 million 2015 Acquisition for approximately €700 million A History of Strategic and Highly Accretive Acquisitions CAG
Slide 29: Acquisition of Fortenova Group Frozen Food Business
Business Overview 13% Others 16% B&H 31% Serbia 40% CroatiaCOUNTRY MIX CATEGORY MIX 50% Frozen Savory 50% Ice Cream • Unparalleled frozen food market leadership in several European markets new to Nomad Foods • Ledo is the #1 frozen food brand in Croatia and Bosnia & Herzegovina and Frikom is the #1
Slide 30: Case Study: Evolution of the UK Market
Numbers represent the retail sales value in GBP. Source: Nielsen 2016 ₤462 Million ₤785 Million 2021 5 Year CAGR of 11% Case Study: Evolution of the UK Market Through Successful Organic Growth, Innovation and M&A CAGNY 2022
Slide 31: Case Study: Evolution of the UK Market Through Organic Growth, Innovation and M&A
Out execute in-store through category leadership Innovate to break through penetration barriersCreate distinctive brandsDrive and leverage our scale Business Birds Eye Chicken Products Fish Fingers & Coated Fish Peas & SteamFresh M&A April 2018 Goodfella’s Acquisition July 2018 Aunt Bessie’s Acquisi
Slide 32: 2022: Challenging Market Environment Nomad Foods is Well Positioned to Manage
European Frozen Food Market Leader Committed to deliver our long term growth strategy Strong execution of our Revenue Growth Management strategy Leveraging scale and reinvesting behind our brands to support longer term growth Focus on productivity excellence to manage inflationary pressures Continue
Slide 33: Initiating 2022 Guidance
Low-single digit growth High-single digit growth Total Revenue Growth Organic Revenue Growth Adjusted EPS Growth Double digit growth Adjusted EPS €1.71 - €1.75 Initiating 2022 Guidance CAGNY 2022
Slide 34: On Pace to Achieve 2025 EPS Target
€2.30 Adjusted EPS $2.60 USD equivalent Adjusted EPS converted to USD, the currency in which Nomad Foods shares trade, for illustrative purposes this is based on a USD/EUR FX rate of $1.13. >10% CAGR based on 2020 to 2025 >10% CAGR On Pace to Achieve 2025 EPS Target CAGNY 2022
Slide 35: Recap: Nomad Foods is a Uniquely Positioned Growth Company
Recap: Nomad Foods is a Uniquely Positioned Growth Company European market leaders in the Frozen Food category, which is well positioned to lead on Health and Sustainability A highly focused portfolio of market leading frozen brands across Europe in key growing segments including Plant Protein Stron
Slide 36: Thank you.
Thank you. Nomad Foods
Slide 37: Questions?
Questions?
Slide 38: Appendix
Appendix
Slide 39: Reconciliation of Non-IFRS financial measures overview
13 The following tables have been included to allow users to reconcile Non-IFRS financial measures as well as Adjusted financial information included within this presentation to reported IFRS financial measures. 1. Definitions of Non-IFRS financial measures referred to in this presentation. 2. Recon
Slide 40: Definitions of Non-IFRS financial measures
1. Definitions of Non-IFRS financial measures referred to in this presentation 14 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 41: Reconciliation of reported to organic revenue growth
Year on Year Growth - December 31, 2021 compared to December 31, 2020 2. Reconciliation of reported to organic revenue growth/(decline) a. Driven by an extra day in February 2020 due to a leap year. b. Translational FX is calculated by translating data of the current and comparative periods using a
Slide 42: Adjusted Statement of Profit or Loss, Q4 2021
16 3. Reconciliation of Non-IFRS Financial Measures Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2021 € in millions, except per share data As reported for the three months ended December 31, 2021 Adjustments As adjusted for the three months ended December 31, 2021
Slide 43: EBITDA and Adjusted EBITDA, Q4 2021
17 3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (unaudited) Three months ended December 31, 2021 € in millions As reported for the three months ended December 31, 2021 Profit for the period 28.8 Taxation 13.5 Net financing costs 15.6 Depreciation and amortization 20.9
Slide 44: Adjusted Statement of Profit or Loss, Q4 2020
18 3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Three months ended December 31, 2020 € in millions, except per share data As reported for the three months ended December 31, 2020 Adjustments As adjusted for the three months ended Decem
Slide 45: EBITDA and Adjusted EBITDA, Q4 2020
19 3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (audited) Three months ended December 31, 2020 € in millions As reported for the three months ended December 31, 2020 Profit for the period 58.7 Taxation 21.7 Net financing costs 19.5 Depreciation and amortization 16.0 Ex
Slide 46: Adjusted Statement of Profit or Loss, FY2021
20 3. Reconciliation of Non-IFRS Financial Measures Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2021 € in millions, except per share data As reported for the twelve months ended December 31, 2021 Adjustments As adjusted for the twelve months ended December 31, 2
Slide 47: EBITDA and Adjusted EBITDA, FY2021
21 3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (unaudited) Twelve months ended December 31, 2021 € in millions As reported for the twelve months ended December 31, 2021 Profit for the period 181.0 Taxation 55.7 Net financing costs 106.0 Depreciation and amortization 7
Slide 48: Adjusted Statement of Profit or Loss, FY2020
22 3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2020 € in millions, except per share data As reported for the twelve months ended December 31, 2020 Adjustments As adjusted for the twelve months ended De
Slide 49: EBITDA and Adjusted EBITDA, FY2020
23 3. Reconciliation of Non-IFRS Financial Measures EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2020 € in millions As reported for the twelve months ended December 31, 2020 Profit for the period 225.1 Taxation 70.4 Net financing costs 63.7 Depreciation and amortization 67.6
Slide 50: Adjusted Statement of Profit or Loss, FY2019
24 3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2019 € in millions, except per share data As reported for the twelve months ended December 31, 2019 Adjustments As adjusted for the twelve months ended De
Slide 51: EBITDA and Adjusted EBITDA, FY2019
25 EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2019 € in millions As reported for the twelve months ended December 31, 2019 Profit for the period 153.6 Taxation 56.7 Net financing costs 73.2 Depreciation and amortization 68.3 EBITDA 351.8 Exceptional items: Brexit 1.6 (a) S
Slide 52: Adjusted Statement of Profit or Loss, FY2018
26 3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2018 € in millions, except per share data As reported for the twelve months ended December 31, 2018 Adjustments As adjusted for the twelve months ended De
Slide 53: EBITDA and Adjusted EBITDA, FY2018
27 EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2018 € in millions As reported for the twelve months ended December 31, 2018 Profit for the period 170.5 Taxation 56.6 Net financing costs 56.0 Depreciation 39.3 Amortization 7.0 EBITDA 329.4 Acquisition purchase price adjustme
Slide 54: Adjusted Statement of Profit or Loss, FY2017
28 3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2017 € in millions, except per share data As reported for the twelve months ended December 31, 2017 Adjustments As adjusted for the twelve months ended De
Slide 55: EBITDA and Adjusted EBITDA, FY2017
29 EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2017 € in millions As reported for the twelve months ended December 31, 2017 Profit for the period 136.5 Taxation 32.0 Net financing costs 74.4 Depreciation 35.9 Amortization 6.5 EBITDA 285.3 Exceptional items: Transactions rel
Slide 56: Adjusted Statement of Profit or Loss, FY2016
30 3. Reconciliation of Non-IFRS Financial Measures (continued) Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2016 € in millions, except per share data As reported for the twelve months ended December 31, 2016 Adjustments As adjusted for the twelve months ended De
Slide 57: EBITDA and Adjusted EBITDA, FY2016
31 EBITDA and Adjusted EBITDA (audited) Twelve months ended December 31, 2016 € in millions As reported for the twelve months ended December 31, 2016 Profit for the period 36.4 Taxation 39.6 Net financing costs 62.1 Depreciation 43.3 Amortization 7.8 EBITDA 189.2 Exceptional items: Costs related to
Slide 58: Reconciliation to Adjusted free cash flow, 2021 and 2020
32 Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow for the Twelve months ended December 30, 2021 and the Twelve months ended December 30, 2020 € in millions Twelve months ended December 30, 2021 Twelve months ended December 30, 2020 Net Cash Flows From
Slide 59: Reconciliation to Adjusted free cash flow, 2016-2019
33 Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow for the Twelve months ended December 30, 2019, 2018, 2017 & 2016 3. Reconciliation of reported net cash flows from operating activities to Adjusted free cash flow a) Adjustment to add back cash flows re