Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Investor Presentation (June 2015)
27 slides from Nomad Foods's investor presentation, Jun 5, 2015
Slide 1: Nomad Foods Investor Presentation
Nomad Foods Investor Presentation 5 June 2015 1
Slide 2: Disclaimer
Disclaimer Please note that this presentation is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as “fo
Slide 3: Agenda
Agenda 1. Transaction Summary 2. Introduction to Nomad Foods 3. Iglo Group Overview Q&A Appendix
Slide 4: Iglo Group Perfectly Fits Our Strategic Investment Criteria
Iglo Group Perfectly Fits Our Strategic Investment Criteria On 1 June 2015, Nomad Foods Limited completed the acquisition of Iglo Foods Holding Limited Nomad Foods Investment Criteria • Branded market leader in a niche market • Protective moats around the business • Strong management organizatio
Slide 5: Transaction Summary
Transaction Summary Nomad Foods
Slide 6: Introduction
Introduction Overview • Following its anchor investment in Iglo Foods Holdings Limited (“Iglo Group”), Nomad Foods Limited (“Nomad Foods”, LSE: NHL) seeks to build a global portfolio of best-in-class food companies and brands within the frozen category and across the broader food sector • Iglo Group
Slide 7: Transaction Summary
Transaction Summary Estimated Sources & Uses (2)(3) Purchase price for Iglo Group of €2.6 billion Sources (€mm) Total (%) Uses (€mm) Total (%) Implies purchase multiple of 8.2x LTM Mar-2015 Nomad Equity Adjusted EBITDA of €316 million (1) Cash on Hand at Nomad € 443 16.4% Purchase Price € 2,600
Slide 8: Pro-forma EPS for Nomad Foods Based on Standalone Iglo
Pro-forma EPS for Nomad Foods Based on Standalone Iglo (in millions) LTM March 2015 € US$ (4) LTM Mar-2015 Adjusted EBITDA (1) 316 345 Depreciation & amortization (2) (30) (33) Adjusted EBIT 285 312 Interest expense (3) (50) (55) Adjusted PBT 235 257 Tax (56) (62) (tax rate of 24%) Adjusted net inco
Slide 9: Introduction to Nomad Foods
Introduction to Nomad Foods 9
Slide 10: Overview of Nomad Foods
Overview of Nomad Foods • With its anchor investment in Iglo Group, Nomad Foods seeks to create a leading, global consumer foods company • In addition to supporting Iglo Group’s organic growth initiatives, Nomad Foods will pursue strategic and complementary acquisitions within existing, as well as n
Slide 11: Stéfan Descheemaeker – CEO of Nomad Foods
Stéfan Descheemaeker – CEO of Nomad Foods • Previous tenures in executive, operational and finance roles make him a dynamic leader with a wealth of relevant experience in managing growth, M&A and integration across food and beverage, and food retailing industries • Recently served as CFO at Delhaize
Slide 12: Nomad Foods – Board of Directors
Nomad Foods – Board of Directors Executive member Role Experience • CEO and Founder of TOMS Capital LLC Co-Executive Chairman, Co- Noam Gottesman • Co-founder of GLG Partners Inc. Founder • Previously, CEO of GLG Partners Inc. • Co-Founder and current Executive Chairman of Jarden Corporation • Previ
Slide 13: Iglo Group Transaction Rationale
Iglo Group Transaction Rationale Nomad Foods supports Iglo Group’s current strategy through long term public capital Leading player in a large and resilient European frozen food market • Nomad Foods offers permanent long term Iconic brands in three focus markets — UK, Germany and Italy public capita
Slide 14: Global Packaged Food Market is Significant
Global Packaged Food Market is Significant As a leading platform, Nomad Foods is well-positioned to lead broader food consolidation and build a best-in-class global foods company ($ in billions) • Numerous opportunities exist across the Non-Frozen US and Europe Opportunity to increase $2,234 footpri
Slide 15: Iglo Group Overview
Iglo Group Overview Nomad Foods
Slide 16: Iglo Group Company Snapshot
Iglo Group Company Snapshot Leading multi-brand and multi-category frozen food company in Western Europe Leading branded frozen food player in Europe today with Iglo Group Structure sales of €1.5bn Strong brands in 3 focus markets – UK, Germany and Italy Operations in 12 countries in Europe Brands S
Slide 17: Three Strong Brands with Leading European Market Position
Three Strong Brands with Leading European Market Position Strong Leadership in Focus Markets (1) … … and Leading Brand Loyalty (2) BirdsEye Metric Brand Position Revenue Awareness 34% (%)/Rank 2.3x No. 1 No. 1 No. 1 UK €516 million 87 78 93 Iglo Brand Position Revenue Trust (3) (%)/Rank 3.3x No. 1 N
Slide 18: Broad Regional Presence with Leading Market Share
Broad Regional Presence with Leading Market Share #1 frozen food player in Europe with leading market share in 7 EU countries Geographic Footprint No.1 in European Frozen Food Market position (1) in frozen food market Market share in Western Europe frozen food market (%) Rank 9.2 2.2x 4.2 1 2 1 3 4.
Slide 19: Diversified Business Mix
Diversified Business Mix Brand Breakdown Sales Adj. EBITDA (1) Sales by Category Meals and other 20% 34% 29% 30% Fish 24% 38% 43% Poultry 25% 13% 2% 35% Vegetables Other (Germany and 32% 24% other (50/50 split)) 21% FY 2014A sales: €1,501m (2) Margin FY 2014A Adj. EBITDA: €306m (2) (3) FY 2014A sale
Slide 20: Scale Business with Attractive Margin and Cash Flow Profile
Scale Business with Attractive Margin and Cash Flow Profile Revenue (1) (€m) and Gross Profit Margin (%) 2013 vs. 2014 1Q14 vs. 1Q15 Gross Margin (%) 34.4 34.6 33.4 35.4 35.6 Net sales declined 1.9% on a Net Sales declined 2.3% on a 1,566 1,573 1,506 1,501 1,497 like-for-like basis from like-for
Slide 21: Focus on Margin Accretive Innovation Platforms
Focus on Margin Accretive Innovation Platforms Iglo Group's innovation approach and pipeline are key to the organic growth strategy Approach to innovation Recent innovations Innovation Platform Key Products Launched • Identifying new meal “Inspirations”(UK) occasions and customers • Focus on “Taste”
Slide 22: Long-Term Vision Supported by Identified Growth Strategy
Long-Term Vision Supported by Identified Growth Strategy Supported by prudent M&A strategy Virtuous Cycle Starts with Revenue Growth Winning in meal occasions Innovation • Increase frozen share of meals 5 • Bigger and bolder Share and 1 innovations rooted in • Grow frozen penetration Market consumer
Slide 23: Experienced Management Team at Iglo Group
Experienced Management Team at Iglo Group Executive Member Role Role Assumed Previous Experience Stéfan Descheemaeker CEO June 2015 Paul Kenyon CFO June 2012 Tania Howarth COO January 2010 Luca Miggiano CMO April 2014 Andrew Weston-Webb MD Birds Eye September 2011 Achim Eichenlaub MD Iglo January 20
Slide 24: Conclusion
Conclusion Unique Platform to Lead Consolidation in the Fragmented Global Food Sector Leading Player in the Experienced Team with a Large and Resilient Strong Track Record European Frozen Food Market Iconic Brands with Attractive Financial Strong Brand Equity in Characteristics UK, Italy & Germany M
Slide 25: Q&A
Q&A Nomad Foods
Slide 26: Appendix
Appendix Nomad Foods
Slide 27: LTM Adjusted EBITDA Reconciliation
LTM Adjusted EBITDA Reconciliation (€ in millions) Three Months Twelve Months Three Months Ended March 31 Ended December Ended March 31 LTM March 31 2015 31 2014 2014 2015 Operating Profit / (Loss) € 55.6 € 222.9 € 63.1 € 215.4 Exceptional Items 20.6 52.9 3.7 69.8 Adjusted Operating Profit € 76.2 €